Louisiana
|
|
26-0513559
|
(State or other jurisdiction incorporation or organization)
|
|
(I.R.S. Employer Identification Number)
|
|
|
|
400 East Thomas Street
|
|
|
Hammond, Louisiana
|
|
70401
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Title of each class
|
|
Trading Symbol(s)
|
|
Name of each exchange on which registered
|
Common Stock, $1 par value
|
|
FGBI
|
|
The Nasdaq Stock Market LLC
|
|
|
|
|
|
Securities Registered Pursuant to Section 12(g) of the Act: None
|
(1)
|
Proxy Statement for the 2020 Annual Meeting of Shareholders of the Registrant (Part III).
|
|
|
Page
|
Part I.
|
||
Item 1
|
||
Item 1A
|
||
Item 1B
|
||
Item 2
|
||
Item 3
|
||
Item 4
|
||
|
|
|
Part II.
|
||
Item 5
|
||
Item 6
|
||
Item 7
|
||
Item 7A
|
||
Item 8
|
||
|
||
Item 9
|
||
Item 9A
|
||
Item 9B
|
||
|
|
|
Part III.
|
||
Item 10
|
||
Item 11
|
||
Item 12
|
||
Item 13
|
||
Item 14
|
||
|
|
|
Part IV.
|
||
Item 15
|
||
Item 16
|
Acquired Institution/Market
|
Date of Acquisition
|
|
Deal Value
(dollars in thousands)
|
|
Fair Value of
Total Assets Acquired
(dollars in thousands)
|
||||
Union Bancshares, Incorporated
|
November 7, 2019
|
|
$
|
43,383
|
|
|
$
|
274,839
|
|
Alexandria MSA
|
|
|
|
|
|
||||
Premier Bancshares, Inc.
|
June 16, 2017
|
|
$
|
20,954
|
|
|
$
|
158,313
|
|
Dallas-Fort Worth-Arlington and Waco MSA
|
|
|
|
|
|
||||
Greensburg Bancshares, Inc.
|
July 1, 2011
|
|
5,308
|
|
|
89,386
|
|
||
Baton Rouge MSA
|
|
|
|
|
|
||||
Homestead Bancorp, Inc.
|
July 30, 2007
|
|
12,140
|
|
|
129,606
|
|
||
Hammond MSA
|
|
|
|
|
|
•
|
be made on terms that are substantially the same as, and follow credit underwriting procedures that are not less stringent than, those prevailing for comparable transactions with unaffiliated persons and that do not involve more than the normal risk of repayment or present other unfavorable features; and
|
•
|
not exceed certain limitations on the amount of credit extended to such persons, individually and in the aggregate, which limits are based, in part, on the amount of First Guaranty Bank's capital.
|
•
|
Truth-In-Lending Act, governing disclosures of credit terms to consumer borrowers;
|
•
|
Real Estate Settlement Procedures Act, requiring that borrowers for mortgage loans for one-to four-family residential real estate receive various disclosures, including good faith estimates of settlement costs, lender servicing and escrow account practices, and prohibiting certain practices that increase the cost of settlement services;
|
•
|
Home Mortgage Disclosure Act, requiring financial institutions to provide information to enable the public and public officials to determine whether a financial institution is fulfilling its obligation to help meet the housing needs of the community it serves;
|
•
|
Equal Credit Opportunity Act, prohibiting discrimination on the basis of race, creed or other prohibited factors in extending credit;
|
•
|
Fair Credit Reporting Act, governing the use and provision of information to credit reporting agencies;
|
•
|
Fair Debt Collection Act, governing the manner in which consumer debts may be collected by collection agencies;
|
•
|
Truth in Savings Act; and
|
•
|
Rules and regulations of the various federal agencies charged with the responsibility of implementing such federal laws.
|
•
|
Right to Financial Privacy Act, which imposes a duty to maintain confidentiality of consumer financial records and prescribes procedures for complying with administrative subpoenas of financial records;
|
•
|
Electronic Funds Transfer Act and Regulation E promulgated thereunder, which govern automatic deposits to and withdrawals from deposit accounts and customers' rights and liabilities arising from the use of automated teller machines and other electronic banking services;
|
•
|
Check Clearing for the 21st Century Act (also known as "Check 21"), which gives "substitute checks," such as digital check images and copies made from that image, the same legal standing as the original paper check;
|
•
|
USA PATRIOT Act, which requires banks operating to, among other things, establish broadened anti-money laundering compliance programs, due diligence policies and controls to ensure the detection and reporting of money laundering. Such required compliance programs are intended to supplement existing compliance requirements, also applicable to financial institutions, under the Bank Secrecy Act and the Office of Foreign Assets Control regulations; and
|
•
|
Gramm-Leach-Bliley Act, which places limitations on the sharing of consumer financial information by financial institutions with unaffiliated third parties. Specifically, the Gramm-Leach-Bliley Act requires all financial institutions offering financial products or services to retail customers to provide such customers with the financial institution's privacy policy and provide such customers the opportunity to "opt out" of the sharing of certain personal financial information with unaffiliated third parties.
|
•
|
finding suitable candidates for acquisition;
|
•
|
attracting funding to support additional growth within acceptable risk tolerances;
|
•
|
maintaining asset quality;
|
•
|
retaining customers and key personnel;
|
•
|
obtaining necessary regulatory approvals;
|
•
|
conducting adequate due diligence and managing known and unknown risks and uncertainties;
|
•
|
integrating acquired businesses; and
|
•
|
maintaining adequate regulatory capital.
|
•
|
we record interest income only on the cash basis or cost-recovery method for nonaccrual loans and we do not record interest income for other real estate owned;
|
•
|
we must provide for probable loan losses through a current period charge to the provision for loan losses;
|
•
|
noninterest expense increases when we write down the value of properties in our other real estate owned portfolio to reflect changing market values;
|
•
|
there are legal fees associated with the resolution of problem assets, as well as carrying costs, such as taxes, insurance, and maintenance fees; and
|
•
|
the resolution of non-performing assets requires the active involvement of management, which can distract them from more profitable activity.
|
•
|
increased regulation of our industry;
|
•
|
compliance with such regulation may increase our costs and limit our ability to pursue business opportunities;
|
•
|
market developments and the resulting economic pressure on consumers may affect consumer confidence levels and may cause increases in delinquencies and default rates, which, among other effects, could affect our charge-offs and provision for loan losses. Competition in the industry could intensify as a result of the increasing consolidation of financial institutions in connection with the current market conditions;
|
•
|
market disruptions make valuation even more difficult and subjective, and our ability to measure the fair value of our assets could be adversely affected. If we determine that a significant portion of our assets have values significantly below their recorded carrying value, we could recognize a material charge to earnings in the quarter in which such determination was made, our capital ratios would be adversely affected and a rating agency might downgrade our credit rating or put us on credit watch; and
|
•
|
the downgrade of the United States government's sovereign credit rating, any related rating agency action in the future, and the downgrade of the sovereign credit ratings for several European nations could negatively impact our business, financial condition and results of operations.
|
Location
|
|
Use of Facilities
|
|
Year Facility
Opened or Acquired
|
|
Owned/Leased
|
First Guaranty Square
400 East Thomas Street Hammond, LA 70401 |
|
First Guaranty Bank's Main Office
|
|
1975
|
|
Owned
|
2111 West Thomas Street
Hammond, LA 70401 |
|
Guaranty West Banking Center
|
|
1974
|
|
Owned
|
455 West Railroad Avenue
Independence, LA 70443 |
|
Independence Banking Center
|
|
1979
|
|
Owned
|
301 Avenue F
Kentwood, LA 70444 |
|
Kentwood Banking Center
|
|
1975
|
|
Owned
|
189 Burt Blvd
Benton, LA 71006 |
|
Benton Banking Center
|
|
2010
|
|
Owned
|
126 South Hwy. 1
Oil City, LA 71061 |
|
Oil City Banking Center
|
|
1999
|
|
Owned
|
401 North 2nd Street
Homer, LA 71040 |
|
Homer Main Banking Center
|
|
1999
|
|
Owned
|
10065 Hwy 79
Haynesville, LA 71038 |
|
Haynesville Banking Center
|
|
1999
|
|
Owned
|
117 East Hico Street
Dubach, LA 71235 |
|
Dubach Banking Center
|
|
1999
|
|
Owned
|
102 East Louisiana Avenue
Vivian, LA 71082 |
|
Vivian Banking Center
|
|
1999
|
|
Owned
|
500 North Cary Avenue
Jennings, LA 70546 |
|
Jennings Banking Center
|
|
1999
|
|
Owned
|
799 West Summers Drive
Abbeville, LA 70510 |
|
Abbeville Banking Center
|
|
1999
|
|
Owned
|
2231 S. Range Avenue
Denham Springs, LA 70726 |
|
Denham Springs Banking Center
|
|
2005
|
|
Owned
|
500 West Pine Street
Ponchatoula, LA 70454 |
|
Ponchatoula Banking Center
|
|
2016
|
|
Owned
|
29815 Walker Rd S
Walker, LA 70785 |
|
Walker Banking Center
|
|
2007
|
|
Owned
|
6151 Hwy 10
Greensburg, LA 70441 |
|
Greensburg Banking Center
|
|
2011
|
|
Owned
|
723 Avenue G
Kentwood, LA 70444 |
|
Kentwood West Banking Center
|
|
2011
|
|
Owned
|
35651 Hwy 16
Montpelier, LA 70422 |
|
Montpelier Banking Center
|
|
2011
|
|
Owned
|
33818 Hwy 16
Denham Springs, LA 70706 |
|
Watson Banking Center
|
|
2011
|
|
Owned
|
8951 Synergy Dr. #100
McKinney, TX 75070 |
|
McKinney Banking Center
|
|
2017
|
|
Owned
|
7600 Woodway Drive
Waco, TX 76712 |
|
Waco Banking Center
|
|
2017
|
|
Owned
|
2209 W. University Dr.
Denton, TX 76201 |
|
Denton Banking Center
|
|
2017
|
|
Owned
|
2001 N. Handley Ederville Road
Fort Worth, TX 76118 |
|
Fort Worth Banking Center
|
|
2017
|
|
Owned
|
603 Main Street #101
Garland, TX 75040 |
|
Garland Banking Center
|
|
2017
|
|
Leased
|
4221 Airline Drive
Bossier City, LA 71111 |
|
Bossier City Banking Center
|
|
2017
|
|
Owned
|
4740 Nelson Rd #320
Lake Charles, LA 70605 |
|
Lake Charles Loan Production Office
|
|
2019
|
|
Leased
|
632 West Oak Street
Amite, LA 70422 |
|
Amite Banking Center
|
|
2019
|
|
Owned
|
1701 Metro Drive
Alexandria, LA 71301 |
|
Alexandria Banking Center
|
|
2019
|
|
Owned
|
1110 Shirley Road
Bunkie, LA 71322 |
|
Bunkie Banking Center
|
|
2019
|
|
Owned
|
2705 Main Street
Hessmer, LA 71341 |
|
Hessmer Banking Center
|
|
2019
|
|
Owned
|
305 North Main Street
Marksville, LA 71351 |
|
Marksville Banking Center
|
|
2019
|
|
Owned
|
211 East Tunica Drive
Marksville, LA 71351 |
|
Tunica Banking Center
|
|
2019
|
|
Owned
|
10710 Highway 1
Moreauville, LA 71355 |
|
Moreauville Banking Center
|
|
2019
|
|
Owned
|
40 Pinecrest Drive
Pineville, LA 71360 |
|
Pineville Banking Center
|
|
2019
|
|
Owned
|
|
At or For the Years Ended December 31,
|
||||||||||||||||||
(in thousands except for %)
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Year End Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment securities
|
$
|
427,013
|
|
|
$
|
405,303
|
|
|
$
|
501,656
|
|
|
$
|
499,336
|
|
|
$
|
546,121
|
|
Federal funds sold
|
$
|
914
|
|
|
$
|
549
|
|
|
$
|
823
|
|
|
$
|
271
|
|
|
$
|
582
|
|
Loans, net of unearned income
|
$
|
1,525,490
|
|
|
$
|
1,225,268
|
|
|
$
|
1,149,014
|
|
|
$
|
948,921
|
|
|
$
|
841,583
|
|
Allowance for loan losses
|
$
|
10,929
|
|
|
$
|
10,776
|
|
|
$
|
9,225
|
|
|
$
|
11,114
|
|
|
$
|
9,415
|
|
Total assets
|
$
|
2,117,216
|
|
|
$
|
1,817,211
|
|
|
$
|
1,750,430
|
|
|
$
|
1,500,946
|
|
|
$
|
1,459,753
|
|
Total deposits
|
$
|
1,853,013
|
|
|
$
|
1,629,622
|
|
|
$
|
1,549,286
|
|
|
$
|
1,326,181
|
|
|
$
|
1,295,870
|
|
Borrowings
|
$
|
86,747
|
|
|
$
|
34,538
|
|
|
$
|
52,938
|
|
|
$
|
43,230
|
|
|
$
|
42,221
|
|
Shareholders' equity
|
$
|
166,035
|
|
|
$
|
147,284
|
|
|
$
|
143,983
|
|
|
$
|
124,349
|
|
|
$
|
118,224
|
|
Common shareholders' equity
|
$
|
166,035
|
|
|
$
|
147,284
|
|
|
$
|
143,983
|
|
|
$
|
124,349
|
|
|
$
|
118,224
|
|
Performance Ratios and Other Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Return on average assets
|
0.76
|
%
|
|
0.82
|
%
|
|
0.71
|
%
|
|
0.97
|
%
|
|
0.97
|
%
|
|||||
Return on average common equity
|
8.99
|
%
|
|
9.98
|
%
|
|
8.59
|
%
|
|
11.18
|
%
|
|
12.98
|
%
|
|||||
Return on average tangible assets (1)
|
0.78
|
%
|
|
0.85
|
%
|
|
0.73
|
%
|
|
0.98
|
%
|
|
0.99
|
%
|
|||||
Return on average tangible common equity (1)
|
9.68
|
%
|
|
10.77
|
%
|
|
9.15
|
%
|
|
11.64
|
%
|
|
13.60
|
%
|
|||||
Net interest margin
|
3.41
|
%
|
|
3.41
|
%
|
|
3.33
|
%
|
|
3.39
|
%
|
|
3.26
|
%
|
|||||
Average loans to average deposits
|
78.59
|
%
|
|
75.39
|
%
|
|
72.23
|
%
|
|
68.57
|
%
|
|
61.31
|
%
|
|||||
Efficiency ratio (2)
|
67.48
|
%
|
|
69.46
|
%
|
|
62.64
|
%
|
|
56.85
|
%
|
|
55.11
|
%
|
|||||
Efficiency ratio (excluding amortization of intangibles and securities transactions) (2)
|
66.77
|
%
|
|
66.63
|
%
|
|
63.38
|
%
|
|
60.19
|
%
|
|
57.74
|
%
|
|||||
Full time equivalent employees (year end)
|
431
|
|
|
346
|
|
|
338
|
|
|
293
|
|
|
277
|
|
|
At or For the Years Ended December 31,
|
||||||||||||||||||
(in thousands except for % and share data)
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Capital Ratios:
|
|
|
|
|
|
|
|
|
|
||||||||||
Average shareholders' equity to average assets
|
8.42
|
%
|
|
8.20
|
%
|
|
8.31
|
%
|
|
8.63
|
%
|
|
9.88
|
%
|
|||||
Average tangible equity to average tangible assets (3)
|
8.02
|
%
|
|
7.86
|
%
|
|
8.01
|
%
|
|
8.44
|
%
|
|
9.67
|
%
|
|||||
Common shareholders' equity to total assets
|
7.84
|
%
|
|
8.10
|
%
|
|
8.23
|
%
|
|
8.28
|
%
|
|
8.10
|
%
|
|||||
Tangible common equity to tangible assets (3)
|
6.99
|
%
|
|
7.79
|
%
|
|
7.87
|
%
|
|
8.10
|
%
|
|
7.89
|
%
|
|||||
Income Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest income
|
$
|
91,643
|
|
|
$
|
78,390
|
|
|
$
|
67,546
|
|
|
$
|
58,532
|
|
|
$
|
56,079
|
|
Interest expense
|
$
|
29,966
|
|
|
$
|
21,366
|
|
|
$
|
14,393
|
|
|
$
|
10,140
|
|
|
$
|
8,608
|
|
Net interest income
|
$
|
61,677
|
|
|
$
|
57,024
|
|
|
$
|
53,153
|
|
|
$
|
48,392
|
|
|
$
|
47,471
|
|
Provision for loan losses
|
$
|
4,860
|
|
|
$
|
1,354
|
|
|
$
|
3,822
|
|
|
$
|
3,705
|
|
|
$
|
3,864
|
|
Noninterest income (excluding securities transactions)
|
$
|
8,456
|
|
|
$
|
7,110
|
|
|
$
|
6,943
|
|
|
$
|
5,656
|
|
|
$
|
5,656
|
|
Securities (losses) gains
|
$
|
(157
|
)
|
|
$
|
(1,830
|
)
|
|
$
|
1,397
|
|
|
$
|
3,799
|
|
|
$
|
3,300
|
|
Noninterest expense
|
$
|
47,219
|
|
|
$
|
43,275
|
|
|
$
|
38,521
|
|
|
$
|
32,885
|
|
|
$
|
31,095
|
|
Earnings before income taxes
|
$
|
17,897
|
|
|
$
|
17,675
|
|
|
$
|
19,150
|
|
|
$
|
21,257
|
|
|
$
|
21,468
|
|
Net income
|
$
|
14,241
|
|
|
$
|
14,213
|
|
|
$
|
11,751
|
|
|
$
|
14,093
|
|
|
$
|
14,505
|
|
Net income available to common shareholders
|
$
|
14,241
|
|
|
$
|
14,213
|
|
|
$
|
11,751
|
|
|
$
|
14,093
|
|
|
$
|
14,121
|
|
Per Common Share Data (5) :
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net earnings
|
$
|
1.47
|
|
|
$
|
1.47
|
|
|
$
|
1.24
|
|
|
$
|
1.53
|
|
|
$
|
1.66
|
|
Cash dividends paid
|
$
|
0.60
|
|
|
$
|
0.58
|
|
|
$
|
0.54
|
|
|
$
|
0.53
|
|
|
$
|
0.49
|
|
Book value
|
$
|
17.04
|
|
|
$
|
15.20
|
|
|
$
|
14.86
|
|
|
$
|
13.51
|
|
|
$
|
12.84
|
|
Tangible book value (4)
|
$
|
15.05
|
|
|
$
|
14.57
|
|
|
$
|
14.17
|
|
|
$
|
13.18
|
|
|
$
|
12.48
|
|
Dividend payout ratio
|
40.74
|
%
|
|
39.65
|
%
|
|
44.34
|
%
|
|
34.56
|
%
|
|
30.07
|
%
|
|||||
Weighted average number of shares outstanding
|
9,695,131
|
|
|
9,687,123
|
|
|
9,468,145
|
|
|
9,205,635
|
|
|
8,485,408
|
|
|||||
Number of shares outstanding
|
9,741,253
|
|
|
9,687,123
|
|
|
9,687,123
|
|
|
9,205,635
|
|
|
9,205,635
|
|
|||||
Asset Quality Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-performing assets to total assets
|
1.04
|
%
|
|
0.55
|
%
|
|
0.84
|
%
|
|
1.48
|
%
|
|
1.51
|
%
|
|||||
Non-performing assets to total loans
|
1.44
|
%
|
|
0.82
|
%
|
|
1.28
|
%
|
|
2.34
|
%
|
|
2.62
|
%
|
|||||
Non-performing loans to total loans
|
1.12
|
%
|
|
0.73
|
%
|
|
1.17
|
%
|
|
2.30
|
%
|
|
2.43
|
%
|
|||||
Loan loss reserve to non-performing assets
|
49.86
|
%
|
|
107.48
|
%
|
|
62.88
|
%
|
|
50.04
|
%
|
|
42.74
|
%
|
|||||
Net charge-offs to average loans
|
0.36
|
%
|
|
(0.02
|
)%
|
|
0.54
|
%
|
|
0.23
|
%
|
|
0.44
|
%
|
|||||
Provision for loan loss to average loans
|
0.37
|
%
|
|
0.12
|
%
|
|
0.36
|
%
|
|
0.42
|
%
|
|
0.47
|
%
|
|||||
Allowance for loan loss to total loans
|
0.72
|
%
|
|
0.88
|
%
|
|
0.80
|
%
|
|
1.17
|
%
|
|
1.12
|
%
|
(1)
|
Tangible calculation eliminates goodwill and acquisition intangibles, principally core deposit intangibles, net of accumulated amortization, net of tax. See below for our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures under the caption "Selected Historical Consolidated Financial and Other Data— Non-GAAP Financial Measures."
|
(2)
|
Efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income. We calculate both a GAAP and a non-GAAP efficiency ratio. The GAAP-based efficiency ratio is noninterest expenses divided by net interest income plus noninterest income. See below for our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures under the caption "Selected Financial Data— Non-GAAP Financial Measures."
|
(3)
|
We calculate tangible common equity as total shareholders' equity less preferred stock, goodwill and acquisition intangibles, principally core deposit intangibles, net of accumulated amortization, and we calculate tangible assets as total assets less goodwill and core deposit intangibles. Tangible common equity to tangible assets is a non-GAAP financial measure, and, as we calculate tangible common equity to tangible assets, the most directly comparable GAAP financial measure is total shareholders' equity to total assets. See below for our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures under the caption "Selected Historical Consolidated Financial and Other Data— Non-GAAP Financial Measures."
|
(4)
|
We calculate tangible book value per common share as total shareholders' equity less preferred stock, goodwill and acquisition intangibles, principally core deposit intangibles, net of accumulated amortization at the end of the relevant period, divided by the outstanding number of shares of our common stock at the end of the relevant period. Tangible book value per common share is a non-GAAP financial measure, and, as we calculate tangible book value per common share, the most directly comparable GAAP financial measure is book value per common share. See below for our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures under the caption "Selected Financial Data— Non-GAAP Financial Measures."
|
(5)
|
Historical share and per share amounts have been adjusted to reflect the ten percent stock dividend paid December 16, 2019 to shareholders of record as of December 9, 2019.
|
|
At December 31,
|
||||||||||||||||||
(in thousands except for share data and %)
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Tangible Common Equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Total shareholders' equity
|
$
|
166,035
|
|
|
$
|
147,284
|
|
|
$
|
143,983
|
|
|
$
|
124,349
|
|
|
$
|
118,224
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Preferred
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Goodwill
|
12,942
|
|
|
3,472
|
|
|
3,472
|
|
|
1,999
|
|
|
1,999
|
|
|||||
Acquisition intangibles
|
6,527
|
|
|
2,704
|
|
|
3,249
|
|
|
978
|
|
|
1,298
|
|
|||||
Tangible common equity
|
$
|
146,566
|
|
|
$
|
141,108
|
|
|
$
|
137,262
|
|
|
$
|
121,372
|
|
|
$
|
114,927
|
|
Common shares outstanding1
|
9,741,253
|
|
|
9,687,123
|
|
|
9,687,123
|
|
|
9,205,635
|
|
|
9,205,635
|
|
|||||
Book value per common share1
|
$
|
17.04
|
|
|
$
|
15.20
|
|
|
$
|
14.86
|
|
|
$
|
13.51
|
|
|
$
|
12.84
|
|
Tangible book value per common share1
|
$
|
15.05
|
|
|
$
|
14.57
|
|
|
$
|
14.17
|
|
|
$
|
13.18
|
|
|
$
|
12.48
|
|
Tangible Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total Assets
|
$
|
2,117,216
|
|
|
$
|
1,817,211
|
|
|
$
|
1,750,430
|
|
|
$
|
1,500,946
|
|
|
$
|
1,459,753
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Goodwill
|
12,942
|
|
|
3,472
|
|
|
3,472
|
|
|
1,999
|
|
|
1,999
|
|
|||||
Acquisition intangibles
|
6,527
|
|
|
2,704
|
|
|
3,249
|
|
|
978
|
|
|
1,298
|
|
|||||
Tangible Assets
|
$
|
2,097,747
|
|
|
$
|
1,811,035
|
|
|
$
|
1,743,709
|
|
|
$
|
1,497,969
|
|
|
$
|
1,456,456
|
|
Tangible common equity to tangible assets
|
6.99
|
%
|
|
7.79
|
%
|
|
7.87
|
%
|
|
8.10
|
%
|
|
7.89
|
%
|
|
For the Year Ended December 31,
|
||||||||||||||||||
(in thousands except for share data and %)
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
GAAP-based efficiency ratio
|
67.48
|
%
|
|
69.46
|
%
|
|
62.64
|
%
|
|
56.85
|
%
|
|
55.11
|
%
|
|||||
Noninterest expense
|
$
|
47,219
|
|
|
$
|
43,275
|
|
|
$
|
38,521
|
|
|
$
|
32,885
|
|
|
$
|
31,095
|
|
Amortization of intangibles
|
390
|
|
|
545
|
|
|
432
|
|
|
320
|
|
|
320
|
|
|||||
Noninterest expense, excluding amortization
|
46,829
|
|
|
42,730
|
|
|
38,089
|
|
|
32,565
|
|
|
30,775
|
|
|||||
Net interest income
|
61,677
|
|
|
57,024
|
|
|
53,153
|
|
|
48,392
|
|
|
47,471
|
|
|||||
Noninterest income
|
8,299
|
|
|
5,280
|
|
|
8,340
|
|
|
9,455
|
|
|
8,956
|
|
|||||
Adjustments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities transactions
|
(157
|
)
|
|
(1,830
|
)
|
|
1,397
|
|
|
3,739
|
|
|
3,125
|
|
|||||
Noninterest income, excluding securities transactions
|
$
|
8,456
|
|
|
$
|
7,110
|
|
|
$
|
6,943
|
|
|
$
|
5,716
|
|
|
$
|
5,831
|
|
Efficiency ratio
|
66.77
|
%
|
|
66.63
|
%
|
|
63.38
|
%
|
|
60.19
|
%
|
|
57.74
|
%
|
•
|
First Guaranty completed its merger with Union Bancshares, Incorporated. ("Union") and its wholly owned subsidiary, The Union Bank, on November 7, 2019. First Guaranty acquired a total of $274.8 million in assets and assumed $231.5 million in liabilities. Shareholders of Union received $1,061.20 per share in cash, yielding an aggregate deal value of $43.4 million. The cash consideration was partially financed by a $32.5 million term loan from First Horizon Bank. First Guaranty acquired a total of $184.2 million in loans, securities of $38.8 million, cash and due from banks of $20.1 million, premises of $7.2 million, other real estate owned of $1.6 million and other assets that totaled $9.3 million. Intangibles recorded from the transaction were a total of $13.7 million, including goodwill of $9.5 million. Total assumed liabilities included deposits of $205.0 million, FHLB advances of $16.6 million, repurchase agreements of $6.9 million and other liabilities of $3.0 million. Expenses related to the merger totaled approximately $0.3 million in 2019.
|
•
|
Total assets at December 31, 2019 increased $300.0 million, or 16.5%, to $2.1 billion when compared with December 31, 2018. Total loans at December 31, 2019 were $1.5 billion, an increase of $300.2 million, or 24.5%, compared with December 31, 2018. Total deposits were $1.9 billion at December 31, 2019, an increase of $223.4 million, or 13.7% compared with December 31, 2018. Retained earnings were $43.3 million at December 31, 2019, an increase of $8.3 million compared to $34.9 million at December 31, 2018. Shareholders' equity was $166.0 million and $147.3 million at December 31, 2019 and December 31, 2018, respectively.
|
•
|
Net income for each of the years ended December 31, 2019 and 2018 was $14.2 million.
|
•
|
Earnings per common share were $1.47 for each of the years ended December 31, 2019 and 2018. Total weighted average shares outstanding were 9,695,131 at December 31, 2019 compared to 9,687,123 at December 31, 2018. The change in shares was due to issuance of 54,130 shares of stock in a private placement in November of 2019.
|
•
|
Net interest income for 2019 was $61.7 million compared to $57.0 million for 2018.
|
•
|
The provision for loan losses totaled $4.9 million for 2019 compared to $1.4 million in 2018. First Guaranty received a $3.6 million negotiated payment in settlement of a commercial and industrial non-accrual loan on May 9, 2018. The payment resulted in a recovery of $1.6 million. The recovery impacted the allowance for loan losses and the end result was a negative provision for loan losses in the second quarter of 2018.
|
•
|
Noninterest income for 2019 was $8.3 million compared to $5.3 million for 2018. During the third quarter of 2019, First Guaranty sold the guaranteed portion of SBA and USDA loans which generated a gain on the sale of loans of $1.4 million.
|
•
|
The net interest margin was 3.41% for 2019 and 2018. First Guaranty attributed the stable net interest margin to a rise in interest income associated with loans and the change in balance sheet composition to higher yielding loans from lower yielding securities, partially offset by a rise in interest expense associated with interest-bearing deposits. Loans as a percentage of average interest earning assets increased to 72.7% at December 31, 2019 compared to 69.8% at December 31, 2018.
|
•
|
Investment securities totaled $427.0 million at December 31, 2019, an increase of $21.7 million when compared to $405.3 million at December 31, 2018. First Guaranty acquired $38.8 million in securities from the Union acquisition and sold securities in order to fund loan growth and reduce interest rate risk. Losses on the sale of securities were $0.2 million for 2019 as compared to losses of $1.8 million for 2018. At December 31, 2019, available for sale securities, at fair value, totaled $340.4 million, an increase of $43.5 million when compared to $297.0 million at December 31, 2018. At December 31, 2019, held to maturity securities, at amortized cost, totaled $86.6 million, a decrease of $21.7 million when compared to $108.3 million at December 31, 2018.
|
•
|
Total loans net of unearned income were $1.5 billion at December 31, 2019 compared to $1.2 billion at December 31, 2018. Total loans net of unearned income are reduced by the allowance for loan losses which totaled $10.9 million at December 31, 2019 and $10.8 million at December 31, 2018.
|
•
|
Total impaired loans increased $11.9 million to $20.7 million at December 31, 2019 compared to $8.8 million at December 31, 2018.
|
•
|
Nonaccrual loans increased $5.7 million to $14.4 million at December 31, 2019 compared to $8.7 million at December 31, 2018.
|
•
|
The allowance for loan losses was 0.72% of loans at December 31, 2019. Loan discounts related to acquisition accounting from the Union transaction was approximately $2.4 million at December 31, 2019.
|
•
|
Return on average assets was 0.76% and 0.82% for the years ended December 31, 2019 and 2018, respectively. Return on average common equity was 8.99% and 9.98% for 2019 and 2018, respectively. Return on average assets is calculated by dividing net income by average assets. Return on average common equity is calculated by dividing net income to common shareholders by average common equity.
|
•
|
Book value per common share was $17.04 as of December 31, 2019 compared to $15.20 as of December 31, 2018. Tangible book value per common share was $15.05 as of December 31, 2019 compared to $14.57 as of December 31, 2018. The increase in book value was due primarily to an increase in accumulated other comprehensive income ("AOCI") and retained earnings. AOCI is comprised of unrealized gains and losses on available for sale securities.
|
•
|
First Guaranty's Board of Directors declared cash dividends of $0.64 per common share in 2019, which was the equivalent of $0.60 per common share after adjusting for the 10% common stock dividend paid in December 2019. First Guaranty also declared cash dividends of $0.64 in 2018, which was the equivalent of $0.58 per common share after adjusting for the 10% common stock dividend paid in December 2019. First Guaranty has paid 106 consecutive quarterly dividends as of December 31, 2019.
|
•
|
In November 2017, First Guaranty announced the launch of an At-The-Market Equity Offering program ("ATM Offering"). First Guaranty may sell up to $25.0 million of common stock under the ATM Offering. First Guaranty expects to use the net proceeds of the ATM Offering for general corporate purposes, including support for organic growth and financing possible acquisitions of other financial institutions. First Guaranty has not sold any shares of common stock under the ATM Offering during the years ended December 31, 2019 and 2018.
|
•
|
First Guaranty currently has one new facility under construction in order to facilitate future expansion. This construction commitment totals $10.1 million with $6.8 million incurred as of December 31, 2019. First Guaranty also completed construction on a new branch facility in Amite, Louisiana during the fourth quarter of 2019.
|
|
At December 31,
|
|||||||||||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||||||||||||
(in thousands except for %)
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|||||||||||||||
Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Construction & land development
|
$
|
172,247
|
|
|
11.3
|
%
|
|
$
|
124,644
|
|
|
10.1
|
%
|
|
$
|
112,603
|
|
|
9.8
|
%
|
|
$
|
84,239
|
|
|
8.9
|
%
|
|
$
|
56,132
|
|
|
6.6
|
%
|
Farmland
|
22,741
|
|
|
1.5
|
%
|
|
18,401
|
|
|
1.5
|
%
|
|
25,691
|
|
|
2.2
|
%
|
|
21,138
|
|
|
2.2
|
%
|
|
17,672
|
|
|
2.1
|
%
|
|||||
1- 4 Family
|
289,635
|
|
|
18.9
|
%
|
|
172,760
|
|
|
14.1
|
%
|
|
158,733
|
|
|
13.8
|
%
|
|
135,211
|
|
|
14.2
|
%
|
|
129,610
|
|
|
15.4
|
%
|
|||||
Multifamily
|
23,973
|
|
|
1.6
|
%
|
|
42,918
|
|
|
3.5
|
%
|
|
16,840
|
|
|
1.4
|
%
|
|
12,450
|
|
|
1.3
|
%
|
|
12,629
|
|
|
1.5
|
%
|
|||||
Non-farm non-residential
|
616,536
|
|
|
40.3
|
%
|
|
586,263
|
|
|
47.7
|
%
|
|
530,293
|
|
|
46.1
|
%
|
|
417,014
|
|
|
43.9
|
%
|
|
323,363
|
|
|
38.3
|
%
|
|||||
Total Real Estate
|
1,125,132
|
|
|
73.6
|
%
|
|
944,986
|
|
|
76.9
|
%
|
|
844,160
|
|
|
73.3
|
%
|
|
670,052
|
|
|
70.5
|
%
|
|
539,406
|
|
|
63.9
|
%
|
|||||
Non-Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Agricultural
|
26,710
|
|
|
1.8
|
%
|
|
23,108
|
|
|
1.9
|
%
|
|
21,514
|
|
|
1.9
|
%
|
|
23,783
|
|
|
2.5
|
%
|
|
25,838
|
|
|
3.1
|
%
|
|||||
Commercial and industrial
|
268,256
|
|
|
17.5
|
%
|
|
200,877
|
|
|
16.4
|
%
|
|
230,638
|
|
|
20.0
|
%
|
|
193,969
|
|
|
20.4
|
%
|
|
224,201
|
|
|
26.6
|
%
|
|||||
Consumer and other
|
108,868
|
|
|
7.1
|
%
|
|
59,443
|
|
|
4.8
|
%
|
|
55,185
|
|
|
4.8
|
%
|
|
63,011
|
|
|
6.6
|
%
|
|
54,163
|
|
|
6.4
|
%
|
|||||
Total Non-real Estate
|
403,834
|
|
|
26.4
|
%
|
|
283,428
|
|
|
23.1
|
%
|
|
307,337
|
|
|
26.7
|
%
|
|
280,763
|
|
|
29.5
|
%
|
|
304,202
|
|
|
36.1
|
%
|
|||||
Total Loans Before Unearned Income
|
1,528,966
|
|
|
100.0
|
%
|
|
1,228,414
|
|
|
100.0
|
%
|
|
1,151,497
|
|
|
100.0
|
%
|
|
950,815
|
|
|
100.0
|
%
|
|
843,608
|
|
|
100.0
|
%
|
|||||
Less: Unearned income
|
(3,476
|
)
|
|
|
|
(3,146
|
)
|
|
|
|
(2,483
|
)
|
|
|
|
(1,894
|
)
|
|
|
|
(2,025
|
)
|
|
|
|
|||||||||
Total Loans Net of Unearned Income
|
$
|
1,525,490
|
|
|
|
|
|
$
|
1,225,268
|
|
|
|
|
|
$
|
1,149,014
|
|
|
|
|
|
$
|
948,921
|
|
|
|
|
|
$
|
841,583
|
|
|
|
|
|
December 31, 2019
|
||||||||||||||
(in thousands)
|
One Year or Less
|
|
More Than One Year
Through Five Years
|
|
After Five Years
|
|
Total
|
||||||||
Real Estate:
|
|
|
|
|
|
|
|
||||||||
Construction & land development
|
$
|
35,393
|
|
|
$
|
124,715
|
|
|
$
|
12,139
|
|
|
$
|
172,247
|
|
Farmland
|
8,348
|
|
|
10,283
|
|
|
4,110
|
|
|
22,741
|
|
||||
1- 4 family
|
43,155
|
|
|
93,457
|
|
|
153,023
|
|
|
289,635
|
|
||||
Multifamily
|
1,385
|
|
|
12,028
|
|
|
10,560
|
|
|
23,973
|
|
||||
Non-farm non-residential
|
124,905
|
|
|
316,767
|
|
|
174,864
|
|
|
616,536
|
|
||||
Total Real Estate
|
213,186
|
|
|
557,250
|
|
|
354,696
|
|
|
1,125,132
|
|
||||
Non-Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Agricultural
|
13,290
|
|
|
5,087
|
|
|
8,333
|
|
|
26,710
|
|
||||
Commercial and industrial
|
71,508
|
|
|
149,667
|
|
|
47,081
|
|
|
268,256
|
|
||||
Consumer and other
|
15,454
|
|
|
90,029
|
|
|
3,385
|
|
|
108,868
|
|
||||
Total Non-Real Estate
|
100,252
|
|
|
244,783
|
|
|
58,799
|
|
|
403,834
|
|
||||
Total Loans Before Unearned Income
|
$
|
313,438
|
|
|
$
|
802,033
|
|
|
$
|
413,495
|
|
|
$
|
1,528,966
|
|
Less: unearned income
|
|
|
|
|
|
|
|
|
|
(3,476
|
)
|
||||
Total Loans Net of Unearned Income
|
|
|
|
|
|
|
|
|
|
$
|
1,525,490
|
|
|
December 31, 2018
|
||||||||||||||
(in thousands)
|
One Year or Less
|
|
More Than One Year
Through Five Years
|
|
After Five Years
|
|
Total
|
||||||||
Real Estate:
|
|
|
|
|
|
|
|
||||||||
Construction & land development
|
$
|
17,799
|
|
|
$
|
74,681
|
|
|
$
|
32,164
|
|
|
$
|
124,644
|
|
Farmland
|
2,814
|
|
|
11,684
|
|
|
3,903
|
|
|
18,401
|
|
||||
1- 4 family
|
11,182
|
|
|
45,004
|
|
|
116,574
|
|
|
172,760
|
|
||||
Multifamily
|
7,525
|
|
|
32,284
|
|
|
3,109
|
|
|
42,918
|
|
||||
Non-farm non-residential
|
81,007
|
|
|
336,493
|
|
|
168,763
|
|
|
586,263
|
|
||||
Total Real Estate
|
120,327
|
|
|
500,146
|
|
|
324,513
|
|
|
944,986
|
|
||||
Non-Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Agricultural
|
10,982
|
|
|
3,870
|
|
|
8,256
|
|
|
23,108
|
|
||||
Commercial and industrial
|
45,604
|
|
|
134,967
|
|
|
20,306
|
|
|
200,877
|
|
||||
Consumer and other
|
14,288
|
|
|
44,883
|
|
|
272
|
|
|
59,443
|
|
||||
Total Non-Real Estate
|
70,874
|
|
|
183,720
|
|
|
28,834
|
|
|
283,428
|
|
||||
Total Loans Before Unearned Income
|
$
|
191,201
|
|
|
$
|
683,866
|
|
|
$
|
353,347
|
|
|
$
|
1,228,414
|
|
Less: unearned income
|
|
|
|
|
|
|
|
|
|
(3,146
|
)
|
||||
Total Loans Net of Unearned Income
|
|
|
|
|
|
|
|
|
|
$
|
1,225,268
|
|
|
Due After December 31, 2020
|
||||||||||
(in thousands)
|
Fixed
|
|
Floating
|
|
Total
|
||||||
One to five years
|
509,455
|
|
|
286,131
|
|
|
795,586
|
|
|||
Over Five to 15 years
|
147,502
|
|
|
65,713
|
|
|
213,215
|
|
|||
Over 15 years
|
143,695
|
|
|
51,612
|
|
|
195,307
|
|
|||
Subtotal
|
$
|
800,652
|
|
|
$
|
403,456
|
|
|
$
|
1,204,108
|
|
Nonaccrual loans
|
|
|
|
|
|
|
14,403
|
|
|||
Total
|
|
|
|
|
|
|
$
|
1,218,511
|
|
|
December 31,
|
||||||||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Nonaccrual loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Real Estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction and land development
|
$
|
381
|
|
|
$
|
311
|
|
|
$
|
371
|
|
|
$
|
551
|
|
|
$
|
558
|
|
Farmland
|
1,274
|
|
|
1,293
|
|
|
65
|
|
|
105
|
|
|
117
|
|
|||||
1- 4 family
|
2,759
|
|
|
2,246
|
|
|
1,953
|
|
|
2,242
|
|
|
4,538
|
|
|||||
Multifamily
|
—
|
|
|
—
|
|
|
—
|
|
|
5,014
|
|
|
9,045
|
|
|||||
Non-farm non-residential
|
4,646
|
|
|
864
|
|
|
3,758
|
|
|
2,753
|
|
|
2,934
|
|
|||||
Total Real Estate
|
9,060
|
|
|
4,714
|
|
|
6,147
|
|
|
10,665
|
|
|
17,192
|
|
|||||
Non-Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Agricultural
|
4,800
|
|
|
3,651
|
|
|
1,496
|
|
|
1,958
|
|
|
2,628
|
|
|||||
Commercial and industrial
|
327
|
|
|
317
|
|
|
4,826
|
|
|
8,070
|
|
|
48
|
|
|||||
Consumer and other
|
216
|
|
|
61
|
|
|
81
|
|
|
981
|
|
|
171
|
|
|||||
Total Non-Real Estate
|
5,343
|
|
|
4,029
|
|
|
6,403
|
|
|
11,009
|
|
|
2,847
|
|
|||||
Total nonaccrual loans
|
14,403
|
|
|
8,743
|
|
|
12,550
|
|
|
21,674
|
|
|
20,039
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans 90 days and greater delinquent & still accruing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Construction and land development
|
48
|
|
|
—
|
|
|
—
|
|
|
34
|
|
|
—
|
|
|||||
Farmland
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|||||
1- 4 family
|
923
|
|
|
26
|
|
|
—
|
|
|
145
|
|
|
391
|
|
|||||
Multifamily
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Non-farm non-residential
|
1,603
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total Real Estate
|
2,574
|
|
|
26
|
|
|
—
|
|
|
179
|
|
|
410
|
|
|||||
Non-Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Agricultural
|
—
|
|
|
—
|
|
|
41
|
|
|
—
|
|
|
—
|
|
|||||
Commercial and industrial
|
15
|
|
|
53
|
|
|
798
|
|
|
—
|
|
|
—
|
|
|||||
Consumer and other
|
50
|
|
|
66
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total Non-Real Estate
|
65
|
|
|
119
|
|
|
839
|
|
|
—
|
|
|
—
|
|
|||||
Total loans 90 days and greater delinquent & still accruing
|
2,639
|
|
|
145
|
|
|
839
|
|
|
179
|
|
|
410
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total non-performing loans
|
$
|
17,042
|
|
|
$
|
8,888
|
|
|
$
|
13,389
|
|
|
$
|
21,853
|
|
|
$
|
20,449
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other real estate owned and foreclosed assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Construction and land development
|
669
|
|
|
241
|
|
|
304
|
|
|
—
|
|
|
25
|
|
|||||
Farmland
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
1- 4 family
|
559
|
|
|
120
|
|
|
23
|
|
|
71
|
|
|
880
|
|
|||||
Multifamily
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Non-farm non-residential
|
3,651
|
|
|
777
|
|
|
954
|
|
|
288
|
|
|
672
|
|
|||||
Total Real Estate
|
4,879
|
|
|
1,138
|
|
|
1,281
|
|
|
359
|
|
|
1,577
|
|
|||||
Non-Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Agricultural
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial and industrial
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Consumer and other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total Non-Real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total other real estate owned and foreclosed assets
|
4,879
|
|
|
1,138
|
|
|
1,281
|
|
|
359
|
|
|
1,577
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total non-performing assets
|
$
|
21,921
|
|
|
$
|
10,026
|
|
|
$
|
14,670
|
|
|
$
|
22,212
|
|
|
$
|
22,026
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-performing assets to total loans
|
1.44
|
%
|
|
0.82
|
%
|
|
1.28
|
%
|
|
2.34
|
%
|
|
2.62
|
%
|
|||||
Non-performing assets to total assets
|
1.04
|
%
|
|
0.55
|
%
|
|
0.84
|
%
|
|
1.48
|
%
|
|
1.51
|
%
|
|||||
Non-performing loans to total loans
|
1.12
|
%
|
|
0.73
|
%
|
|
1.17
|
%
|
|
2.30
|
%
|
|
2.43
|
%
|
|
At December 31,
|
||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
TDRs:
|
|
|
|
|
|
||||||
In Compliance with Modified Terms
|
$
|
—
|
|
|
$
|
1,288
|
|
|
$
|
2,138
|
|
Past Due 30 through 89 days and still accruing
|
—
|
|
|
—
|
|
|
—
|
|
|||
Past Due 90 days and greater and still accruing
|
—
|
|
|
—
|
|
|
—
|
|
|||
Nonaccrual
|
—
|
|
|
304
|
|
|
334
|
|
|||
Restructured Loans that subsequently defaulted
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total TDR
|
$
|
—
|
|
|
$
|
1,592
|
|
|
$
|
2,472
|
|
|
At December 31,
|
||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Classification of Loans:
|
|
|
|
|
|
||||||
Substandard
|
$
|
53,072
|
|
|
$
|
46,792
|
|
|
$
|
48,417
|
|
Doubtful
|
—
|
|
|
523
|
|
|
4,560
|
|
|||
Total Classified Assets
|
$
|
53,072
|
|
|
$
|
47,315
|
|
|
$
|
52,977
|
|
Special Mention
|
$
|
24,083
|
|
|
$
|
26,413
|
|
|
$
|
25,929
|
|
•
|
past due and non-performing assets;
|
•
|
specific internal analysis of loans requiring special attention;
|
•
|
the current level of regulatory classified and criticized assets and the associated risk factors with each;
|
•
|
changes in underwriting standards or lending procedures and policies;
|
•
|
charge-off and recovery practices;
|
•
|
national and local economic and business conditions;
|
•
|
nature and volume of loans;
|
•
|
overall portfolio quality;
|
•
|
adequacy of loan collateral;
|
•
|
quality of loan review system and degree of oversight by our board of directors;
|
•
|
competition and legal and regulatory requirements on borrowers;
|
•
|
examinations of the loan portfolio by federal and state regulatory agencies and examinations; and
|
•
|
review by our internal loan review department and independent accountants.
|
|
At or For the Years Ended December 31,
|
||||||||||||||||||
(dollars in thousands)
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Balance at beginning of year
|
$
|
10,776
|
|
|
$
|
9,225
|
|
|
$
|
11,114
|
|
|
$
|
9,415
|
|
|
$
|
9,105
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Charge-offs:
|
|
|
|
|
|
|
|
|
|
||||||||||
Real Estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction and land development
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(559
|
)
|
|||||
Farmland
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
1- 4 family
|
(552
|
)
|
|
(99
|
)
|
|
(33
|
)
|
|
(244
|
)
|
|
(410
|
)
|
|||||
Multifamily
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(947
|
)
|
|||||
Non-farm non-residential
|
(2,603
|
)
|
|
(404
|
)
|
|
(1,291
|
)
|
|
(1,373
|
)
|
|
(1,137
|
)
|
|||||
Total Real Estate
|
(3,155
|
)
|
|
(503
|
)
|
|
(1,324
|
)
|
|
(1,617
|
)
|
|
(3,053
|
)
|
|||||
Non-Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Agricultural
|
(40
|
)
|
|
(300
|
)
|
|
(162
|
)
|
|
(83
|
)
|
|
(491
|
)
|
|||||
Commercial and industrial loans
|
(879
|
)
|
|
(179
|
)
|
|
(3,629
|
)
|
|
(579
|
)
|
|
(79
|
)
|
|||||
Consumer and other
|
(1,190
|
)
|
|
(907
|
)
|
|
(1,247
|
)
|
|
(635
|
)
|
|
(550
|
)
|
|||||
Total Non-Real Estate
|
(2,109
|
)
|
|
(1,386
|
)
|
|
(5,038
|
)
|
|
(1,297
|
)
|
|
(1,120
|
)
|
|||||
Total charge-offs
|
(5,264
|
)
|
|
(1,889
|
)
|
|
(6,362
|
)
|
|
(2,914
|
)
|
|
(4,173
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Construction and land development
|
—
|
|
|
3
|
|
|
43
|
|
|
4
|
|
|
5
|
|
|||||
Farmland
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
1- 4 family
|
39
|
|
|
90
|
|
|
92
|
|
|
45
|
|
|
94
|
|
|||||
Multifamily
|
—
|
|
|
20
|
|
|
40
|
|
|
401
|
|
|
46
|
|
|||||
Non-farm non-residential
|
5
|
|
|
89
|
|
|
85
|
|
|
16
|
|
|
5
|
|
|||||
Total Real Estate
|
44
|
|
|
202
|
|
|
260
|
|
|
466
|
|
|
150
|
|
|||||
Non-Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Agricultural
|
—
|
|
|
26
|
|
|
138
|
|
|
113
|
|
|
3
|
|
|||||
Commercial and industrial loans
|
267
|
|
|
1,642
|
|
|
30
|
|
|
146
|
|
|
315
|
|
|||||
Consumer and other
|
246
|
|
|
216
|
|
|
223
|
|
|
183
|
|
|
151
|
|
|||||
Total Non-Real Estate
|
513
|
|
|
1,884
|
|
|
391
|
|
|
442
|
|
|
469
|
|
|||||
Total recoveries
|
557
|
|
|
2,086
|
|
|
651
|
|
|
908
|
|
|
619
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net (charge-offs) recoveries
|
(4,707
|
)
|
|
197
|
|
|
(5,711
|
)
|
|
(2,006
|
)
|
|
(3,554
|
)
|
|||||
Provision for loan losses
|
4,860
|
|
|
1,354
|
|
|
3,822
|
|
|
3,705
|
|
|
3,864
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at end of year
|
$
|
10,929
|
|
|
$
|
10,776
|
|
|
$
|
9,225
|
|
|
$
|
11,114
|
|
|
$
|
9,415
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net loan charge-offs to average loans
|
0.36
|
%
|
|
(0.02
|
)%
|
|
0.54
|
%
|
|
0.23
|
%
|
|
0.44
|
%
|
|||||
Net loan charge-offs to loans at end of year
|
0.31
|
%
|
|
(0.02
|
)%
|
|
0.50
|
%
|
|
0.21
|
%
|
|
0.42
|
%
|
|||||
Allowance for loan losses to loans at end of year
|
0.72
|
%
|
|
0.88
|
%
|
|
0.80
|
%
|
|
1.17
|
%
|
|
1.12
|
%
|
|||||
Net loan charge-offs to allowance for loan losses
|
43.07
|
%
|
|
(1.83
|
)%
|
|
61.91
|
%
|
|
18.05
|
%
|
|
37.75
|
%
|
|||||
Net loan charge-offs to provision charged to expense
|
96.85
|
%
|
|
(14.55
|
)%
|
|
149.42
|
%
|
|
54.14
|
%
|
|
91.98
|
%
|
•
|
First Guaranty acquired $184.1 million in loans from the Union acquisition on November 7, 2019. These loans were subject to purchase accounting and are not included in the allowance calculation but are included in the overall allowance to total loan ratio calculation. Discounts on the acquired Union loans were approximately $2.4 million at December 31, 2019.
|
•
|
First Guaranty’s commercial lease portfolio increased by $44.2 million which increased allocations for this portfolio.
|
•
|
First Guaranty originated a $25.0 million cash secured loan in the fourth quarter of 2019. The cash secured loan did not require a related allowance.
|
•
|
First Guaranty’s syndicated loan portfolio declined in 2019 which lowered risk in the portfolio and required less of an allocation in the commercial and industrial portfolio.
|
•
|
First Guaranty’s non-farm non-residential loan portfolio declined by approximately $33.8 million when acquired loans are removed from total loans.
|
•
|
First Guaranty’s multifamily loan portfolio declined by $18.9 million which required less of an allocation in the multifamily portfolio.
|
•
|
First Guaranty charged-off $1.4 million on a previously allocated impaired loan that had a specific reserve of $1.0 million at December 31, 2018 and September 30, 2019.
|
•
|
First Guaranty continued its growth of one-to four-family loans along with construction and land development loans. These loan categories generally require less of a risk allocation as compared to commercial real estate loans.
|
•
|
First Guaranty charged off $0.2 million on a commercial and industrial loan in the first quarter of 2019. This loan had no remaining principal balance at December 31, 2019.
|
•
|
First Guaranty charged off $0.7 million on a purchased consumer loan pool during 2019. This pool had a remaining principal balance of $2.6 million at December 31, 2019.
|
•
|
First Guaranty charged off $0.8 million on a non-farm non-residential loan in the second quarter of 2019. This loan had no remaining principal balance at December 31, 2019. The collateral balance of $2.2 million was transferred to other real estate owned during the second quarter of 2019.
|
•
|
First Guaranty charged off $0.4 million on a one-to four-family residential loan in the second quarter of 2019. This loan had no remaining principal balance at December 31, 2019.
|
•
|
First Guaranty charged off $1.4 million on a non-farm non-residential loan secured by a hotel in the fourth quarter of 2019. This loan had no remaining principal balance at December 31, 2019. This loan had been previously allocated for with a specific reserve of $1.0 million at September 30, 2019 and December 31, 2018.
|
•
|
First Guaranty charged off $0.3 million on a non-farm non-residential loan secured by a hotel in the fourth quarter of 2019. This loan had a remaining principal balance of $3.7 million at December 31, 2019 with a specific reserve of $1.8 million allocated against it.
|
•
|
First Guaranty charged off $0.2 million on a commercial and industrial loan in the fourth quarter of 2019. This loan had no remaining principal balance at December 31, 2019.
|
•
|
Smaller loans and overdrawn deposit accounts comprised the remaining $1.3 million of charge-offs for 2019.
|
|
At December 31,
|
||||||||||||||||||
|
2019
|
|
2018
|
||||||||||||||||
(dollars in thousands)
|
Allowance for
Loan Losses
|
|
Percent of Allowance
to Total Allowance
for Loan Losses
|
|
Percent of Loans
in Each Category
to Total Loans
|
|
Allowance for
Loan Losses
|
|
Percent of Allowance
to Total Allowance
for Loan Losses
|
|
Percent of Loans
in Each Category
to Total Loans
|
||||||||
Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Construction and land development
|
$
|
423
|
|
|
3.9
|
%
|
|
11.3
|
%
|
|
$
|
581
|
|
|
5.4
|
%
|
|
10.1
|
%
|
Farmland
|
50
|
|
|
0.4
|
%
|
|
1.5
|
%
|
|
41
|
|
|
0.4
|
%
|
|
1.5
|
%
|
||
1- 4 family
|
1,027
|
|
|
9.4
|
%
|
|
18.9
|
%
|
|
911
|
|
|
8.5
|
%
|
|
14.1
|
%
|
||
Multifamily
|
1,038
|
|
|
9.5
|
%
|
|
1.6
|
%
|
|
1,318
|
|
|
12.2
|
%
|
|
3.5
|
%
|
||
Non-farm non-residential
|
5,277
|
|
|
48.3
|
%
|
|
40.3
|
%
|
|
4,771
|
|
|
44.3
|
%
|
|
47.7
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Non-Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Agricultural
|
95
|
|
|
0.9
|
%
|
|
1.8
|
%
|
|
339
|
|
|
3.1
|
%
|
|
1.9
|
%
|
||
Commercial and industrial
|
1,909
|
|
|
17.5
|
%
|
|
17.5
|
%
|
|
1,909
|
|
|
17.7
|
%
|
|
16.4
|
%
|
||
Consumer and other
|
1,110
|
|
|
10.1
|
%
|
|
7.1
|
%
|
|
891
|
|
|
8.3
|
%
|
|
4.8
|
%
|
||
Unallocated
|
—
|
|
|
—
|
%
|
|
—
|
|
|
15
|
|
|
0.1
|
%
|
|
—
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total Allowance
|
$
|
10,929
|
|
|
100.0
|
%
|
|
100.0
|
%
|
|
$
|
10,776
|
|
|
100.0
|
%
|
|
100.0
|
%
|
|
At December 31,
|
||||||||||||||||||
|
2017
|
|
2016
|
||||||||||||||||
(dollars in thousands)
|
Allowance for
Loan Losses
|
|
Percent of Allowance
to Total Allowance
for Loan Losses
|
|
Percent of Loans
in Each Category
to Total Loans
|
|
Allowance for
Loan Losses
|
|
Percent of Allowance
to Total Allowance
for Loan Losses
|
|
Percent of Loans
in Each Category
to Total Loans
|
||||||||
Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Construction and land development
|
$
|
628
|
|
|
6.8
|
%
|
|
9.8
|
%
|
|
$
|
1,232
|
|
|
11.1
|
%
|
|
8.9
|
%
|
Farmland
|
5
|
|
|
0.1
|
%
|
|
2.2
|
%
|
|
19
|
|
|
0.2
|
%
|
|
2.2
|
%
|
||
1- 4 family
|
1,078
|
|
|
11.7
|
%
|
|
13.8
|
%
|
|
1,204
|
|
|
10.8
|
%
|
|
14.2
|
%
|
||
Multifamily
|
994
|
|
|
10.8
|
%
|
|
1.4
|
%
|
|
591
|
|
|
5.3
|
%
|
|
1.3
|
%
|
||
Non-farm non-residential
|
2,811
|
|
|
30.4
|
%
|
|
46.1
|
%
|
|
3,451
|
|
|
31.0
|
%
|
|
43.9
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Non-Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Agricultural
|
187
|
|
|
2.0
|
%
|
|
1.9
|
%
|
|
74
|
|
|
0.7
|
%
|
|
2.5
|
%
|
||
Commercial and industrial
|
2,377
|
|
|
25.8
|
%
|
|
20.0
|
%
|
|
3,543
|
|
|
31.9
|
%
|
|
20.4
|
%
|
||
Consumer and other
|
1,125
|
|
|
12.2
|
%
|
|
4.8
|
%
|
|
972
|
|
|
8.7
|
%
|
|
6.6
|
%
|
||
Unallocated
|
20
|
|
|
0.2
|
%
|
|
—
|
|
|
28
|
|
|
0.3
|
%
|
|
—
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total Allowance
|
$
|
9,225
|
|
|
100.0
|
%
|
|
100.0
|
%
|
|
$
|
11,114
|
|
|
100.0
|
%
|
|
100.0
|
%
|
|
At December 31,
|
||||||||
|
2015
|
||||||||
(dollars in thousands)
|
Allowance for
Loan Losses
|
|
Percent of Allowance
to Total Allowance
for Loan Losses
|
|
Percent of Loans
in Each Category
to Total Loans
|
||||
Real Estate:
|
|
|
|
|
|
||||
Construction and land development
|
$
|
962
|
|
|
10.2
|
%
|
|
6.6
|
%
|
Farmland
|
54
|
|
|
0.6
|
%
|
|
2.1
|
%
|
|
1- 4 family
|
1,771
|
|
|
18.8
|
%
|
|
15.4
|
%
|
|
Multifamily
|
557
|
|
|
5.9
|
%
|
|
1.5
|
%
|
|
Non-farm non-residential
|
3,298
|
|
|
35.0
|
%
|
|
38.3
|
%
|
|
|
|
|
|
|
|
||||
Non-Real Estate:
|
|
|
|
|
|
||||
Agricultural
|
16
|
|
|
0.2
|
%
|
|
3.1
|
%
|
|
Commercial and industrial
|
2,527
|
|
|
26.9
|
%
|
|
26.6
|
%
|
|
Consumer and other
|
230
|
|
|
2.4
|
%
|
|
6.4
|
%
|
|
Unallocated
|
—
|
|
|
—
|
%
|
|
—
|
|
|
|
|
|
|
|
|
||||
Total Allowance
|
$
|
9,415
|
|
|
100.0
|
%
|
|
100.0
|
%
|
|
At December 31,
|
||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||
(in thousands)
|
Amortized Cost
|
|
Fair Value
|
|
Amortized Cost
|
|
Fair Value
|
|
Amortized Cost
|
|
Fair Value
|
||||||||||||
Available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasuries
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
19,490
|
|
|
$
|
19,486
|
|
U.S. Government Agencies
|
16,380
|
|
|
16,393
|
|
|
146,911
|
|
|
141,389
|
|
|
200,052
|
|
|
195,983
|
|
||||||
Corporate debt securities
|
94,561
|
|
|
95,369
|
|
|
76,310
|
|
|
72,878
|
|
|
91,770
|
|
|
91,485
|
|
||||||
Other securities
|
497
|
|
|
497
|
|
|
483
|
|
|
483
|
|
|
500
|
|
|
493
|
|
||||||
Municipal bonds
|
30,297
|
|
|
32,153
|
|
|
32,956
|
|
|
33,901
|
|
|
37,210
|
|
|
39,569
|
|
||||||
Collateralized mortgage obligations
|
16,400
|
|
|
16,397
|
|
|
918
|
|
|
904
|
|
|
1,191
|
|
|
1,185
|
|
||||||
Mortgage-backed securities
|
179,546
|
|
|
179,625
|
|
|
48,434
|
|
|
47,422
|
|
|
33,680
|
|
|
33,334
|
|
||||||
Total available for sale securities
|
337,681
|
|
|
340,434
|
|
|
306,012
|
|
|
296,977
|
|
|
383,893
|
|
|
381,535
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Government Agencies
|
18,175
|
|
|
18,143
|
|
|
28,172
|
|
|
27,091
|
|
|
28,169
|
|
|
27,499
|
|
||||||
Municipal bonds
|
5,107
|
|
|
5,289
|
|
|
5,227
|
|
|
5,126
|
|
|
5,322
|
|
|
5,325
|
|
||||||
Mortgage-backed securities
|
63,297
|
|
|
63,385
|
|
|
74,927
|
|
|
72,623
|
|
|
86,630
|
|
|
85,733
|
|
||||||
Total held to maturity securities
|
$
|
86,579
|
|
|
$
|
86,817
|
|
|
$
|
108,326
|
|
|
$
|
104,840
|
|
|
$
|
120,121
|
|
|
$
|
118,557
|
|
|
At December 31, 2019
|
||||||||||||||||||||||||||
|
One Year or Less
|
|
More than One Year
through Five Years
|
|
More than Five Years
through Ten Years
|
|
More than Ten Years
|
||||||||||||||||||||
(in thousands except for %)
|
Carrying Value
|
|
Weighted
Average Yield
|
|
Carrying Value
|
|
Weighted
Average Yield
|
|
Carrying Value
|
|
Weighted
Average Yield
|
|
Carrying Value
|
|
Weighted
Average Yield
|
||||||||||||
Available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasuries
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
—
|
%
|
U.S. Government Agencies
|
2,096
|
|
|
1.8
|
%
|
|
4,647
|
|
|
2.2
|
%
|
|
149
|
|
|
2.0
|
%
|
|
9,501
|
|
|
2.9
|
%
|
||||
Corporate and other debt securities
|
640
|
|
|
3.4
|
%
|
|
24,860
|
|
|
3.1
|
%
|
|
68,129
|
|
|
3.6
|
%
|
|
1,740
|
|
|
4.7
|
%
|
||||
Other securities
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
497
|
|
|
2.3
|
%
|
||||
Municipal bonds
|
1,785
|
|
|
4.1
|
%
|
|
9,221
|
|
|
3.8
|
%
|
|
9,665
|
|
|
3.8
|
%
|
|
11,482
|
|
|
3.5
|
%
|
||||
Collateralized mortgage obligations
|
—
|
|
|
—
|
%
|
|
55
|
|
|
2.1
|
%
|
|
5,567
|
|
|
2.2
|
%
|
|
10,775
|
|
|
2.2
|
%
|
||||
Mortgage-backed securities
|
—
|
|
|
—
|
%
|
|
416
|
|
|
2.0
|
%
|
|
1,393
|
|
|
2.2
|
%
|
|
177,816
|
|
|
2.5
|
%
|
||||
Total available for sale securities
|
$
|
4,521
|
|
|
2.9
|
%
|
|
$
|
39,199
|
|
|
3.1
|
%
|
|
$
|
84,903
|
|
|
3.5
|
%
|
|
$
|
211,811
|
|
|
2.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Government Agencies
|
$
|
5,000
|
|
|
1.5
|
%
|
|
$
|
7,177
|
|
|
2.0
|
%
|
|
$
|
5,998
|
|
|
2.1
|
%
|
|
$
|
—
|
|
|
—
|
%
|
Municipal bonds
|
50
|
|
|
1.6
|
%
|
|
150
|
|
|
2.1
|
%
|
|
1,498
|
|
|
2.6
|
%
|
|
3,409
|
|
|
2.7
|
%
|
||||
Mortgage-backed securities
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
11,628
|
|
|
2.0
|
%
|
|
51,669
|
|
|
2.3
|
%
|
||||
Total held to maturity securities
|
$
|
5,050
|
|
|
1.5
|
%
|
|
$
|
7,327
|
|
|
2.0
|
%
|
|
$
|
19,124
|
|
|
2.1
|
%
|
|
$
|
55,078
|
|
|
2.4
|
%
|
|
At December 31, 2018
|
||||||||||||||||||||||||||
|
One Year or Less
|
|
More than One Year
through Five Years
|
|
More than Five Years
through Ten Years
|
|
More than Ten Years
|
||||||||||||||||||||
(in thousands except for %)
|
Carrying
Value
|
|
Weighted
Average Yield
|
|
Carrying
Value
|
|
Weighted
Average Yield
|
|
Carrying
Value
|
|
Weighted
Average Yield
|
|
Carrying
Value
|
|
Weighted
Average Yield
|
||||||||||||
Available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasuries
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
—
|
%
|
U.S. Government Agencies
|
—
|
|
|
—
|
%
|
|
18,428
|
|
|
2.1
|
%
|
|
114,053
|
|
|
2.5
|
%
|
|
8,908
|
|
|
2.9
|
%
|
||||
Corporate and other debt securities
|
555
|
|
|
4.5
|
%
|
|
28,538
|
|
|
3.0
|
%
|
|
42,752
|
|
|
3.5
|
%
|
|
1,033
|
|
|
5.5
|
%
|
||||
Other securities
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
483
|
|
|
2.2
|
%
|
||||
Municipal bonds
|
2,493
|
|
|
3.0
|
%
|
|
7,635
|
|
|
4.0
|
%
|
|
17,502
|
|
|
3.2
|
%
|
|
6,271
|
|
|
4.7
|
%
|
||||
Collateralized mortgage obligations
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
904
|
|
|
2.4
|
%
|
||||
Mortgage-backed Securities
|
—
|
|
|
—
|
%
|
|
237
|
|
|
1.6
|
%
|
|
966
|
|
|
2.3
|
%
|
|
46,219
|
|
|
2.8
|
%
|
||||
Total available for sale securities
|
3,048
|
|
|
3.2
|
%
|
|
54,838
|
|
|
2.9
|
%
|
|
175,273
|
|
|
2.9
|
%
|
|
63,818
|
|
|
3.0
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Government Agencies
|
—
|
|
|
—
|
%
|
|
6,998
|
|
|
1.6
|
%
|
|
17,174
|
|
|
2.4
|
%
|
|
4,000
|
|
|
3.2
|
%
|
||||
Municipal bonds
|
—
|
|
|
—
|
%
|
|
250
|
|
|
1.9
|
%
|
|
165
|
|
|
2.6
|
%
|
|
4,812
|
|
|
2.7
|
%
|
||||
Mortgage-backed securities
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
14,146
|
|
|
2.0
|
%
|
|
60,781
|
|
|
2.6
|
%
|
||||
Total held to maturity securities
|
$
|
—
|
|
|
—
|
%
|
|
$
|
7,248
|
|
|
1.6
|
%
|
|
$
|
31,485
|
|
|
2.2
|
%
|
|
$
|
69,593
|
|
|
2.6
|
%
|
|
At December 31, 2019
|
||||||
(in thousands)
|
Amortized Cost
|
|
Fair Value
|
||||
Freddie Mac
|
96,966
|
|
|
97,036
|
|
||
Fannie Mae
|
146,702
|
|
|
146,758
|
|
||
Federal Farm Credit Bank
|
18,227
|
|
|
18,211
|
|
||
Total
|
$
|
261,895
|
|
|
$
|
262,005
|
|
|
For the Years Ended December 31,
|
||||||||||||||||||||||||||||
Total Deposits
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||||||||
(in thousands except for %)
|
Average Balance
|
|
Percent
|
|
Weighted
Average Rate
|
|
Average Balance
|
|
Percent
|
|
Weighted
Average Rate
|
|
Average Balance
|
|
Percent
|
|
Weighted
Average Rate
|
||||||||||||
Noninterest-bearing Demand
|
$
|
262,379
|
|
|
15.7
|
%
|
|
—
|
%
|
|
$
|
252,531
|
|
|
16.3
|
%
|
|
—
|
%
|
|
$
|
244,949
|
|
|
16.7
|
%
|
|
—
|
%
|
Interest-bearing Demand
|
592,113
|
|
|
35.4
|
%
|
|
1.8
|
%
|
|
556,528
|
|
|
35.9
|
%
|
|
1.5
|
%
|
|
539,399
|
|
|
36.9
|
%
|
|
1.0
|
%
|
|||
Savings
|
115,682
|
|
|
6.9
|
%
|
|
0.4
|
%
|
|
111,134
|
|
|
7.2
|
%
|
|
0.4
|
%
|
|
102,779
|
|
|
7.0
|
%
|
|
0.2
|
%
|
|||
Time
|
703,685
|
|
|
42.0
|
%
|
|
2.4
|
%
|
|
628,457
|
|
|
40.6
|
%
|
|
1.7
|
%
|
|
575,666
|
|
|
39.4
|
%
|
|
1.2
|
%
|
|||
Total Deposits
|
$
|
1,673,859
|
|
|
100.0
|
%
|
|
1.7
|
%
|
|
$
|
1,548,650
|
|
|
100.0
|
%
|
|
1.3
|
%
|
|
$
|
1,462,793
|
|
|
100.0
|
%
|
|
0.9
|
%
|
|
For the Years Ended December 31,
|
||||||||||||||||||||||||||||
Individual and Business Deposits
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||||||||
(in thousands except for %)
|
Average Balance
|
|
Percent
|
|
Weighted
Average Rate
|
|
Average Balance
|
|
Percent
|
|
Weighted
Average Rate
|
|
Average Balance
|
|
Percent
|
|
Weighted
Average Rate
|
||||||||||||
Noninterest-bearing Demand
|
$
|
256,099
|
|
|
23.7
|
%
|
|
—
|
%
|
|
$
|
246,550
|
|
|
26.7
|
%
|
|
—
|
%
|
|
$
|
240,337
|
|
|
28.0
|
%
|
|
—
|
%
|
Interest-bearing Demand
|
241,290
|
|
|
22.3
|
%
|
|
1.4
|
%
|
|
204,405
|
|
|
22.1
|
%
|
|
1.1
|
%
|
|
187,439
|
|
|
21.8
|
%
|
|
0.6
|
%
|
|||
Savings
|
86,972
|
|
|
8.0
|
%
|
|
0.1
|
%
|
|
84,844
|
|
|
9.2
|
%
|
|
0.1
|
%
|
|
82,442
|
|
|
9.6
|
%
|
|
0.1
|
%
|
|||
Time
|
498,521
|
|
|
46.0
|
%
|
|
2.6
|
%
|
|
388,623
|
|
|
42.0
|
%
|
|
1.7
|
%
|
|
348,656
|
|
|
40.6
|
%
|
|
1.3
|
%
|
|||
Total Individual and Business Deposits
|
$
|
1,082,882
|
|
|
100.0
|
%
|
|
1.5
|
%
|
|
$
|
924,422
|
|
|
100.0
|
%
|
|
1.0
|
%
|
|
$
|
858,874
|
|
|
100.0
|
%
|
|
0.7
|
%
|
|
For the Years Ended December 31,
|
||||||||||||||||||||||||||||
Public Fund Deposits
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||||||||
(in thousands except for %)
|
Average Balance
|
|
Percent
|
|
Weighted
Average Rate
|
|
Average Balance
|
|
Percent
|
|
Weighted
Average Rate
|
|
Average Balance
|
|
Percent
|
|
Weighted
Average Rate
|
||||||||||||
Noninterest-bearing Demand
|
$
|
6,280
|
|
|
1.1
|
%
|
|
—
|
%
|
|
$
|
5,981
|
|
|
1.0
|
%
|
|
—
|
%
|
|
$
|
4,612
|
|
|
0.8
|
%
|
|
—
|
%
|
Interest-bearing Demand
|
350,823
|
|
|
59.3
|
%
|
|
2.0
|
%
|
|
352,123
|
|
|
56.4
|
%
|
|
1.8
|
%
|
|
351,960
|
|
|
58.3
|
%
|
|
1.2
|
%
|
|||
Savings
|
28,710
|
|
|
4.9
|
%
|
|
1.6
|
%
|
|
26,290
|
|
|
4.2
|
%
|
|
1.4
|
%
|
|
20,337
|
|
|
3.4
|
%
|
|
0.8
|
%
|
|||
Time
|
205,164
|
|
|
34.7
|
%
|
|
2.1
|
%
|
|
239,834
|
|
|
38.4
|
%
|
|
1.7
|
%
|
|
227,010
|
|
|
37.5
|
%
|
|
1.1
|
%
|
|||
Total Public Fund Deposits
|
$
|
590,977
|
|
|
100.0
|
%
|
|
1.9
|
%
|
|
$
|
624,228
|
|
|
100.0
|
%
|
|
1.7
|
%
|
|
$
|
603,919
|
|
|
100.0
|
%
|
|
1.2
|
%
|
|
At December 31,
|
||||||||||
(in thousands except for %)
|
2019
|
|
2018
|
|
2017
|
||||||
Public Funds:
|
|
|
|
|
|
||||||
Noninterest-bearing Demand
|
$
|
9,944
|
|
|
$
|
6,930
|
|
|
$
|
4,828
|
|
Interest-bearing Demand
|
424,732
|
|
|
364,692
|
|
|
389,788
|
|
|||
Savings
|
29,570
|
|
|
26,903
|
|
|
20,539
|
|
|||
Time
|
146,420
|
|
|
247,004
|
|
|
225,591
|
|
|||
Total Public Funds
|
$
|
610,666
|
|
|
$
|
645,529
|
|
|
$
|
640,746
|
|
Total Deposits
|
$
|
1,853,013
|
|
|
$
|
1,629,622
|
|
|
$
|
1,549,286
|
|
Total Public Funds as a percent of Total Deposits
|
33.0
|
%
|
|
39.6
|
%
|
|
41.4
|
%
|
(in thousands)
|
December 31, 2019
|
||
Due in one year or less
|
$
|
226,971
|
|
Due after one year through three years
|
120,554
|
|
|
Due after three years
|
177,001
|
|
|
Total certificates of deposit greater than or equal to $100,000
|
$
|
524,526
|
|
|
At or For the Years Ended December 31,
|
||||||||||
(in thousands except for %)
|
2019
|
|
2018
|
|
2017
|
||||||
Balance at end of year
|
$
|
19,919
|
|
|
$
|
—
|
|
|
$
|
15,500
|
|
Maximum month-end outstanding
|
$
|
19,919
|
|
|
$
|
37,000
|
|
|
$
|
28,000
|
|
Average daily outstanding
|
$
|
3,320
|
|
|
$
|
7,119
|
|
|
$
|
5,833
|
|
Total Weighted average rate during the year
|
2.00
|
%
|
|
2.21
|
%
|
|
1.06
|
%
|
|||
Weighted average rate at the end of the year
|
2.00
|
%
|
|
—
|
%
|
|
1.51
|
%
|
|
December 31, 2019
|
|
December 31, 2018
|
|
December 31, 2017
|
|||||||||||||||||||||||||||
(in thousands except for %)
|
Average Balance
|
|
Interest
|
|
Yield/Rate
|
|
Average Balance
|
|
Interest
|
|
Yield/Rate
|
|
Average Balance
|
|
Interest
|
|
Yield/Rate
|
|||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-earning deposits with banks(1)
|
$
|
144,298
|
|
|
$
|
2,956
|
|
|
2.05
|
%
|
|
$
|
39,005
|
|
|
$
|
612
|
|
|
1.57
|
%
|
|
$
|
23,913
|
|
|
$
|
178
|
|
|
0.74
|
%
|
Securities (including FHLB stock)
|
349,247
|
|
|
9,800
|
|
|
2.81
|
%
|
|
465,399
|
|
|
12,941
|
|
|
2.78
|
%
|
|
511,728
|
|
|
13,325
|
|
|
2.60
|
%
|
||||||
Federal funds sold
|
592
|
|
|
1
|
|
|
0.25
|
%
|
|
531
|
|
|
1
|
|
|
0.23
|
%
|
|
977
|
|
|
9
|
|
|
0.89
|
%
|
||||||
Loans held for sale
|
324
|
|
|
24
|
|
|
7.41
|
%
|
|
1,330
|
|
|
84
|
|
|
6.32
|
%
|
|
1,233
|
|
|
69
|
|
|
5.60
|
%
|
||||||
Loans, net of unearned income
|
1,315,524
|
|
|
78,862
|
|
|
5.99
|
%
|
|
1,167,458
|
|
|
64,752
|
|
|
5.55
|
%
|
|
1,056,519
|
|
|
53,965
|
|
|
5.11
|
%
|
||||||
Total interest-earning assets
|
1,809,985
|
|
|
91,643
|
|
|
5.06
|
%
|
|
1,673,723
|
|
|
78,390
|
|
|
4.68
|
%
|
|
1,594,370
|
|
|
67,546
|
|
|
4.23
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Noninterest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Cash and due from banks
|
11,951
|
|
|
|
|
|
|
10,013
|
|
|
|
|
|
|
10,147
|
|
|
|
|
|
||||||||||||
Premises and equipment, net
|
45,037
|
|
|
|
|
|
|
38,502
|
|
|
|
|
|
|
31,885
|
|
|
|
|
|
||||||||||||
Other assets
|
15,256
|
|
|
|
|
|
|
13,805
|
|
|
|
|
|
|
9,536
|
|
|
|
|
|
||||||||||||
Total Assets
|
$
|
1,882,229
|
|
|
|
|
|
|
$
|
1,736,043
|
|
|
|
|
|
|
$
|
1,645,938
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Liabilities and Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Demand deposits
|
$
|
592,113
|
|
|
10,447
|
|
|
1.76
|
%
|
|
$
|
556,528
|
|
|
8,531
|
|
|
1.53
|
%
|
|
$
|
539,399
|
|
|
5,526
|
|
|
1.02
|
%
|
|||
Savings deposits
|
115,682
|
|
|
527
|
|
|
0.46
|
%
|
|
111,134
|
|
|
407
|
|
|
0.37
|
%
|
|
102,779
|
|
|
201
|
|
|
0.20
|
%
|
||||||
Time deposits
|
703,685
|
|
|
17,141
|
|
|
2.44
|
%
|
|
628,457
|
|
|
10,690
|
|
|
1.70
|
%
|
|
575,666
|
|
|
7,112
|
|
|
1.24
|
%
|
||||||
Borrowings
|
40,766
|
|
|
1,851
|
|
|
4.54
|
%
|
|
39,150
|
|
|
1,738
|
|
|
4.44
|
%
|
|
41,190
|
|
|
1,554
|
|
|
3.77
|
%
|
||||||
Total interest-bearing liabilities
|
1,452,246
|
|
|
29,966
|
|
|
2.06
|
%
|
|
1,335,269
|
|
|
21,366
|
|
|
1.60
|
%
|
|
1,259,034
|
|
|
14,393
|
|
|
1.14
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Noninterest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Demand deposits
|
262,379
|
|
|
|
|
|
|
252,531
|
|
|
|
|
|
|
244,949
|
|
|
|
|
|
||||||||||||
Other
|
9,204
|
|
|
|
|
|
|
5,870
|
|
|
|
|
|
|
5,138
|
|
|
|
|
|
||||||||||||
Total Liabilities
|
1,723,829
|
|
|
|
|
|
|
1,593,670
|
|
|
|
|
|
|
1,509,121
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Shareholders' Equity
|
158,400
|
|
|
|
|
|
|
142,373
|
|
|
|
|
|
|
136,817
|
|
|
|
|
|
||||||||||||
Total Liabilities and Shareholders' Equity
|
$
|
1,882,229
|
|
|
|
|
|
|
$
|
1,736,043
|
|
|
|
|
|
|
$
|
1,645,938
|
|
|
|
|
|
|||||||||
Net interest income
|
|
|
$
|
61,677
|
|
|
|
|
|
|
$
|
57,024
|
|
|
|
|
|
|
$
|
53,153
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net interest rate spread(2)
|
|
|
|
|
3.00
|
%
|
|
|
|
|
|
3.08
|
%
|
|
|
|
|
|
3.09
|
%
|
||||||||||||
Net interest-earning assets(3)
|
$
|
357,739
|
|
|
|
|
|
|
$
|
338,454
|
|
|
|
|
|
|
$
|
335,336
|
|
|
|
|
|
|||||||||
Net interest margin(4)(5)
|
|
|
|
|
3.41
|
%
|
|
|
|
|
|
3.41
|
%
|
|
|
|
|
|
3.33
|
%
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Average interest-earning assets to interest-bearing liabilities
|
|
|
|
|
124.63
|
%
|
|
|
|
|
|
125.35
|
%
|
|
|
|
|
|
126.64
|
%
|
(1)
|
Includes Federal Reserve balances reported in cash and due from banks on the consolidated balance sheets.
|
(2)
|
Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
|
(3)
|
Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
|
(4)
|
Net interest margin represents net interest income divided by average total interest-earning assets.
|
(5)
|
The tax adjusted net interest margin was 3.42%, 3.42% and 3.36% for the years ended December 31, 2019, 2018 and 2017. A 21% tax rate was used to calculate the effect on securities income from tax exempt securities for the years ended December 31, 2019 and 2018. A 35% tax rate was used to calculate the effect on securities income from tax exempt securities for year ended December 31, 2017, respectively.
|
|
For the Years Ended December 31, 2019 vs. 2018
Increase (Decrease) Due To
|
|
For the Years Ended December 31, 2018 vs. 2017
Increase (Decrease) Due To
|
||||||||||||||||||||
(in thousands except for %)
|
Volume
|
|
Rate
|
|
Increase/
Decrease
|
|
Volume
|
|
Rate
|
|
Increase/
Decrease
|
||||||||||||
Interest earned on:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest-earning deposits with banks
|
$
|
2,105
|
|
|
$
|
239
|
|
|
$
|
2,344
|
|
|
$
|
157
|
|
|
$
|
277
|
|
|
$
|
434
|
|
Securities (including FHLB stock)
|
(3,259
|
)
|
|
118
|
|
|
(3,141
|
)
|
|
(1,255
|
)
|
|
871
|
|
|
(384
|
)
|
||||||
Federal funds sold
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(5
|
)
|
|
(8
|
)
|
||||||
Loans held for sale
|
(72
|
)
|
|
12
|
|
|
(60
|
)
|
|
6
|
|
|
9
|
|
|
15
|
|
||||||
Loans, net of unearned income
|
8,618
|
|
|
5,492
|
|
|
14,110
|
|
|
5,934
|
|
|
4,853
|
|
|
10,787
|
|
||||||
Total interest income
|
7,392
|
|
|
5,861
|
|
|
13,253
|
|
|
4,839
|
|
|
6,005
|
|
|
10,844
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest paid on:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Demand deposits
|
570
|
|
|
1,346
|
|
|
1,916
|
|
|
180
|
|
|
2,825
|
|
|
3,005
|
|
||||||
Savings deposits
|
18
|
|
|
102
|
|
|
120
|
|
|
17
|
|
|
189
|
|
|
206
|
|
||||||
Time deposits
|
1,400
|
|
|
5,051
|
|
|
6,451
|
|
|
700
|
|
|
2,878
|
|
|
3,578
|
|
||||||
Borrowings
|
73
|
|
|
40
|
|
|
113
|
|
|
(79
|
)
|
|
263
|
|
|
184
|
|
||||||
Total interest expense
|
2,061
|
|
|
6,539
|
|
|
8,600
|
|
|
818
|
|
|
6,155
|
|
|
6,973
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Change in net interest income
|
$
|
5,331
|
|
|
$
|
(678
|
)
|
|
$
|
4,653
|
|
|
$
|
4,021
|
|
|
$
|
(150
|
)
|
|
$
|
3,871
|
|
(in thousands)
|
December 31, 2019
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||
Other noninterest expense:
|
|
|
|
|
|
||||||
Legal and professional fees
|
$
|
2,648
|
|
|
$
|
2,362
|
|
|
$
|
3,049
|
|
Data processing
|
1,972
|
|
|
1,692
|
|
|
1,608
|
|
|||
ATM fees
|
1,217
|
|
|
1,214
|
|
|
1,161
|
|
|||
Marketing and public relations
|
1,456
|
|
|
1,329
|
|
|
1,205
|
|
|||
Taxes - sales, capital, and franchise
|
1,094
|
|
|
1,066
|
|
|
970
|
|
|||
Operating supplies
|
674
|
|
|
562
|
|
|
496
|
|
|||
Software expense and amortization
|
1,308
|
|
|
1,119
|
|
|
923
|
|
|||
Travel and lodging
|
908
|
|
|
978
|
|
|
910
|
|
|||
Telephone
|
193
|
|
|
208
|
|
|
167
|
|
|||
Amortization of core deposits
|
390
|
|
|
545
|
|
|
432
|
|
|||
Donations
|
603
|
|
|
380
|
|
|
322
|
|
|||
Net costs from other real estate and repossessions
|
422
|
|
|
186
|
|
|
306
|
|
|||
Regulatory assessment
|
683
|
|
|
941
|
|
|
726
|
|
|||
Other
|
2,536
|
|
|
2,204
|
|
|
1,628
|
|
|||
Total other expense
|
$
|
16,104
|
|
|
$
|
14,786
|
|
|
$
|
13,903
|
|
|
"Well Capitalized Minimums"
|
|
At December 31, 2019
|
|
"Well Capitalized Minimums"
|
|
At December 31, 2018
|
||||
Tier 1 Leverage Ratio
|
5.00
|
%
|
|
10.44
|
%
|
|
5.00
|
%
|
|
9.79
|
%
|
Tier 1 Risk-based Capital Ratio
|
8.00
|
%
|
|
11.96
|
%
|
|
8.00
|
%
|
|
12.20
|
%
|
Total Risk-based Capital Ratio
|
10.00
|
%
|
|
12.61
|
%
|
|
10.00
|
%
|
|
12.97
|
%
|
Common Equity Tier One Capital
|
6.50
|
%
|
|
11.96
|
%
|
|
6.50
|
%
|
|
12.20
|
%
|
(in thousands)
|
December 31, 2019
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||
Commitments to Extend Credit
|
$
|
117,826
|
|
|
$
|
108,348
|
|
|
$
|
78,125
|
|
Unfunded Commitments under lines of credit
|
$
|
148,127
|
|
|
$
|
122,212
|
|
|
$
|
101,344
|
|
Commercial and Standby letters of credit
|
$
|
11,258
|
|
|
$
|
6,912
|
|
|
$
|
7,886
|
|
Payments Due by Period:
|
December 31, 2019
|
||||||||||||||
(in thousands)
|
Less Than One Year
|
|
One to Three Years
|
|
Over Three Years
|
|
Total
|
||||||||
Operating leases
|
$
|
147
|
|
|
$
|
241
|
|
|
$
|
46
|
|
|
$
|
434
|
|
Software contracts
|
1,484
|
|
|
2,276
|
|
|
1,678
|
|
|
5,438
|
|
||||
Time deposits
|
344,758
|
|
|
167,902
|
|
|
243,367
|
|
|
756,027
|
|
||||
Short-term advances from Federal Home Loan Bank
|
13,079
|
|
|
—
|
|
|
—
|
|
|
13,079
|
|
||||
Repurchase agreements
|
—
|
|
|
6,840
|
|
|
—
|
|
|
6,840
|
|
||||
Long-term advances from Federal Home Loan Bank
|
—
|
|
|
—
|
|
|
3,533
|
|
|
3,533
|
|
||||
Senior long-term debt
|
19,349
|
|
|
6,500
|
|
|
22,750
|
|
|
48,599
|
|
||||
Junior subordinated debentures
|
—
|
|
|
—
|
|
|
15,000
|
|
|
15,000
|
|
||||
Total contractual obligations
|
$
|
378,817
|
|
|
$
|
183,759
|
|
|
$
|
286,374
|
|
|
$
|
848,950
|
|
|
December 31, 2019
|
||||||||||||||||||
|
Interest Sensitivity Within
|
||||||||||||||||||
(dollars in thousands)
|
3 Months Or Less
|
|
Over 3 Months
thru 12 Months
|
|
Total One Year
|
|
Over One Year
|
|
Total
|
||||||||||
Earning Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans (including loans held for sale)
|
$
|
443,900
|
|
|
$
|
172,007
|
|
|
$
|
615,907
|
|
|
$
|
909,583
|
|
|
$
|
1,525,490
|
|
Securities (including FHLB stock)
|
4,027
|
|
|
8,851
|
|
|
12,878
|
|
|
417,443
|
|
|
430,321
|
|
|||||
Federal Funds Sold
|
914
|
|
|
—
|
|
|
914
|
|
|
—
|
|
|
914
|
|
|||||
Other earning assets
|
47,820
|
|
|
—
|
|
|
47,820
|
|
|
—
|
|
|
47,820
|
|
|||||
Total earning assets
|
$
|
496,661
|
|
|
$
|
180,858
|
|
|
$
|
677,519
|
|
|
$
|
1,327,026
|
|
|
$
|
2,004,545
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Source of Funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest-bearing accounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Demand deposits
|
$
|
635,942
|
|
|
$
|
—
|
|
|
$
|
635,942
|
|
|
$
|
—
|
|
|
$
|
635,942
|
|
Savings deposits
|
135,156
|
|
|
—
|
|
|
135,156
|
|
|
—
|
|
|
135,156
|
|
|||||
Time deposits
|
73,427
|
|
|
227,170
|
|
|
300,597
|
|
|
455,430
|
|
|
756,027
|
|
|||||
Short-term borrowings
|
13,079
|
|
|
—
|
|
|
13,079
|
|
|
6,085
|
|
|
19,164
|
|
|||||
Senior long-term debt
|
48,558
|
|
|
—
|
|
|
48,558
|
|
|
3,533
|
|
|
52,091
|
|
|||||
Junior subordinated debt
|
—
|
|
|
—
|
|
|
—
|
|
|
14,737
|
|
|
14,737
|
|
|||||
Noninterest-bearing, net
|
—
|
|
|
—
|
|
|
—
|
|
|
391,428
|
|
|
391,428
|
|
|||||
Total source of funds
|
$
|
906,162
|
|
|
$
|
227,170
|
|
|
$
|
1,133,332
|
|
|
$
|
871,213
|
|
|
$
|
2,004,545
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Period gap
|
$
|
(409,501
|
)
|
|
$
|
(46,312
|
)
|
|
$
|
(455,813
|
)
|
|
$
|
455,813
|
|
|
|
|
|
Cumulative gap
|
$
|
(409,501
|
)
|
|
$
|
(455,813
|
)
|
|
$
|
(455,813
|
)
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cumulative gap as a percent of earning assets
|
(20.4
|
)%
|
|
(22.7
|
)%
|
|
(22.7
|
)%
|
|
|
|
|
|
December 31, 2019
|
||
Instantaneous Changes in Interest Rates (basis points)
|
|
Percent Change in Net Interest Income
|
+400
|
|
(0.71)%
|
+300
|
|
(0.41)%
|
+200
|
|
(0.13)%
|
+100
|
|
(0.21)%
|
Base
|
|
0%
|
-100
|
|
2.87%
|
|
||
Gradual Changes in Interest Rates (basis points)
|
|
Percent Change in Net Interest Income
|
+400
|
|
(2.45)%
|
+300
|
|
(1.77)%
|
+200
|
|
(1.15)%
|
+100
|
|
(0.4)%
|
Base
|
|
0%
|
-100
|
|
1.14%
|
/s/ Castaing, Hussey & Lolan, LLC
|
|
|
|
We have served as First Guaranty's auditor since 2001.
|
|
|
|
Castaing, Hussey & Lolan, LLC
|
|
New Iberia, Louisiana
|
|
March 16, 2020
|
|
(in thousands, except share data)
|
December 31, 2019
|
|
December 31, 2018
|
||||
Assets
|
|
|
|
||||
Cash and cash equivalents:
|
|
|
|
||||
Cash and due from banks
|
$
|
66,511
|
|
|
$
|
127,416
|
|
Federal funds sold
|
914
|
|
|
549
|
|
||
Cash and cash equivalents
|
67,425
|
|
|
127,965
|
|
||
|
|
|
|
||||
Investment securities:
|
|
|
|
||||
Available for sale, at fair value
|
340,434
|
|
|
296,977
|
|
||
Held to maturity, at cost (estimated fair value of $86,817 and $104,840, respectively)
|
86,579
|
|
|
108,326
|
|
||
Investment securities
|
427,013
|
|
|
405,303
|
|
||
|
|
|
|
||||
Federal Home Loan Bank stock, at cost
|
3,308
|
|
|
2,393
|
|
||
Loans held for sale
|
—
|
|
|
344
|
|
||
|
|
|
|
||||
Loans, net of unearned income
|
1,525,490
|
|
|
1,225,268
|
|
||
Less: allowance for loan losses
|
10,929
|
|
|
10,776
|
|
||
Net loans
|
1,514,561
|
|
|
1,214,492
|
|
||
|
|
|
|
||||
Premises and equipment, net
|
56,464
|
|
|
39,695
|
|
||
Goodwill
|
12,942
|
|
|
3,472
|
|
||
Intangible assets, net
|
7,166
|
|
|
3,528
|
|
||
Other real estate, net
|
4,879
|
|
|
1,138
|
|
||
Accrued interest receivable
|
8,412
|
|
|
6,716
|
|
||
Other assets
|
15,046
|
|
|
12,165
|
|
||
Total Assets
|
$
|
2,117,216
|
|
|
$
|
1,817,211
|
|
|
|
|
|
||||
Liabilities and Shareholders' Equity
|
|
|
|
||||
Deposits:
|
|
|
|
||||
Noninterest-bearing demand
|
$
|
325,888
|
|
|
$
|
244,516
|
|
Interest-bearing demand
|
635,942
|
|
|
594,359
|
|
||
Savings
|
135,156
|
|
|
109,958
|
|
||
Time
|
756,027
|
|
|
680,789
|
|
||
Total deposits
|
1,853,013
|
|
|
1,629,622
|
|
||
|
|
|
|
||||
Short-term advances from Federal Home Loan Bank
|
13,079
|
|
|
—
|
|
||
Repurchase agreements
|
6,840
|
|
|
—
|
|
||
Accrued interest payable
|
6,047
|
|
|
3,952
|
|
||
Long-term advances from Federal Home Loan Bank
|
3,533
|
|
|
—
|
|
||
Senior long-term debt
|
48,558
|
|
|
19,838
|
|
||
Junior subordinated debentures
|
14,737
|
|
|
14,700
|
|
||
Other liabilities
|
5,374
|
|
|
1,815
|
|
||
Total Liabilities
|
1,951,181
|
|
|
1,669,927
|
|
||
|
|
|
|
||||
Shareholders' Equity
|
|
|
|
||||
Common stock: 1
|
|
|
|
||||
$1 par value - authorized 100,600,000 shares; issued 9,741,253 and 9,687,123 shares
|
9,741
|
|
|
9,687
|
|
||
Surplus
|
110,836
|
|
|
109,788
|
|
||
Retained earnings
|
43,283
|
|
|
34,947
|
|
||
Accumulated other comprehensive income (loss)
|
2,175
|
|
|
(7,138
|
)
|
||
Total Shareholders' Equity
|
166,035
|
|
|
147,284
|
|
||
Total Liabilities and Shareholders' Equity
|
$
|
2,117,216
|
|
|
$
|
1,817,211
|
|
|
Years Ended December 31,
|
||||||||||
(in thousands, except share data)
|
2019
|
|
2018
|
|
2017
|
||||||
Interest Income:
|
|
|
|
|
|
||||||
Loans (including fees)
|
$
|
78,886
|
|
|
$
|
64,836
|
|
|
$
|
54,034
|
|
Deposits with other banks
|
2,956
|
|
|
612
|
|
|
178
|
|
|||
Securities (including FHLB stock)
|
9,800
|
|
|
12,941
|
|
|
13,325
|
|
|||
Federal funds sold
|
1
|
|
|
1
|
|
|
9
|
|
|||
Total Interest Income
|
91,643
|
|
|
78,390
|
|
|
67,546
|
|
|||
|
|
|
|
|
|
||||||
Interest Expense:
|
|
|
|
|
|
|
|
|
|||
Demand deposits
|
10,447
|
|
|
8,531
|
|
|
5,526
|
|
|||
Savings deposits
|
527
|
|
|
407
|
|
|
201
|
|
|||
Time deposits
|
17,141
|
|
|
10,690
|
|
|
7,112
|
|
|||
Borrowings
|
1,851
|
|
|
1,738
|
|
|
1,554
|
|
|||
Total Interest Expense
|
29,966
|
|
|
21,366
|
|
|
14,393
|
|
|||
|
|
|
|
|
|
||||||
Net Interest Income
|
61,677
|
|
|
57,024
|
|
|
53,153
|
|
|||
Less: Provision for loan losses
|
4,860
|
|
|
1,354
|
|
|
3,822
|
|
|||
Net Interest Income after Provision for Loan Losses
|
56,817
|
|
|
55,670
|
|
|
49,331
|
|
|||
|
|
|
|
|
|
||||||
Noninterest Income:
|
|
|
|
|
|
|
|
|
|||
Service charges, commissions and fees
|
2,808
|
|
|
2,988
|
|
|
2,589
|
|
|||
ATM and debit card fees
|
2,254
|
|
|
2,122
|
|
|
1,986
|
|
|||
Net (losses) gains on securities
|
(157
|
)
|
|
(1,830
|
)
|
|
1,397
|
|
|||
Net gains on sale of loans
|
1,376
|
|
|
278
|
|
|
311
|
|
|||
Other
|
2,018
|
|
|
1,722
|
|
|
2,057
|
|
|||
Total Noninterest Income
|
8,299
|
|
|
5,280
|
|
|
8,340
|
|
|||
|
|
|
|
|
|
||||||
Noninterest Expense:
|
|
|
|
|
|
|
|
|
|||
Salaries and employee benefits
|
25,019
|
|
|
22,888
|
|
|
20,113
|
|
|||
Occupancy and equipment expense
|
6,096
|
|
|
5,601
|
|
|
4,505
|
|
|||
Other
|
16,104
|
|
|
14,786
|
|
|
13,903
|
|
|||
Total Noninterest Expense
|
47,219
|
|
|
43,275
|
|
|
38,521
|
|
|||
|
|
|
|
|
|
||||||
Income Before Income Taxes
|
17,897
|
|
|
17,675
|
|
|
19,150
|
|
|||
Less: Provision for income taxes
|
3,656
|
|
|
3,462
|
|
|
7,399
|
|
|||
Net Income
|
$
|
14,241
|
|
|
$
|
14,213
|
|
|
$
|
11,751
|
|
|
|
|
|
|
|
||||||
Per Common Share: 1
|
|
|
|
|
|
|
|
|
|||
Earnings
|
$
|
1.47
|
|
|
$
|
1.47
|
|
|
$
|
1.21
|
|
Cash dividends paid
|
$
|
0.60
|
|
|
$
|
0.58
|
|
|
$
|
0.54
|
|
|
|
|
|
|
|
||||||
Weighted Average Common Shares Outstanding
|
9,695,131
|
|
|
9,687,123
|
|
|
9,687,123
|
|
|
Years Ended December 31,
|
||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Net Income
|
$
|
14,241
|
|
|
$
|
14,213
|
|
|
$
|
11,751
|
|
Other comprehensive income:
|
|
|
|
|
|
||||||
Unrealized gains (losses) on securities:
|
|
|
|
|
|
||||||
Unrealized holding gains (losses) arising during the period
|
11,435
|
|
|
(8,508
|
)
|
|
5,098
|
|
|||
Reclassification adjustments for gains (losses) included in net income
|
353
|
|
|
1,830
|
|
|
(1,397
|
)
|
|||
Change in unrealized gains (losses) on securities
|
11,788
|
|
|
(6,678
|
)
|
|
3,701
|
|
|||
Tax impact
|
(2,475
|
)
|
|
1,402
|
|
|
(1,258
|
)
|
|||
Other comprehensive income (loss)
|
9,313
|
|
|
(5,276
|
)
|
|
2,443
|
|
|||
Comprehensive Income
|
$
|
23,554
|
|
|
$
|
8,937
|
|
|
$
|
14,194
|
|
|
Common Stock
$1 Par
|
|
Surplus
|
|
Retained
Earnings
|
|
Accumulated
Other Comprehensive
Income/(Loss)
|
|
Total
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31, 2016 (1)
|
$
|
9,205
|
|
|
$
|
97,649
|
|
|
$
|
21,494
|
|
|
$
|
(3,999
|
)
|
|
$
|
124,349
|
|
Net income
|
—
|
|
|
—
|
|
|
11,751
|
|
|
—
|
|
|
11,751
|
|
|||||
Common stock issued in acquisition, 481,488 shares (1)
|
482
|
|
|
12,139
|
|
|
(1,971
|
)
|
|
—
|
|
|
10,650
|
|
|||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
2,443
|
|
|
2,443
|
|
|||||
Cash dividends on common stock ($0.54 per share) (1)
|
—
|
|
|
—
|
|
|
(5,210
|
)
|
|
—
|
|
|
(5,210
|
)
|
|||||
Balance December 31, 2017
|
$
|
9,687
|
|
|
$
|
109,788
|
|
|
$
|
26,064
|
|
|
$
|
(1,556
|
)
|
|
$
|
143,983
|
|
Reclassification of stranded tax effects in accumulated other comprehensive income (2)
|
—
|
|
|
—
|
|
|
306
|
|
|
(306
|
)
|
|
—
|
|
|||||
Net income
|
—
|
|
|
—
|
|
|
14,213
|
|
|
—
|
|
|
14,213
|
|
|||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,276
|
)
|
|
(5,276
|
)
|
|||||
Cash dividends on common stock ($0.58 per share) (1)
|
—
|
|
|
—
|
|
|
(5,636
|
)
|
|
—
|
|
|
(5,636
|
)
|
|||||
Balance December 31, 2018
|
$
|
9,687
|
|
|
$
|
109,788
|
|
|
$
|
34,947
|
|
|
$
|
(7,138
|
)
|
|
$
|
147,284
|
|
Net income
|
—
|
|
|
—
|
|
|
14,241
|
|
|
—
|
|
|
14,241
|
|
|||||
Common stock issued in private placement, 54,130 shares (1)
|
54
|
|
|
1,048
|
|
|
(102
|
)
|
|
—
|
|
|
1,000
|
|
|||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
9,313
|
|
|
9,313
|
|
|||||
Cash dividends on common stock ($0.60 per share)(1)
|
—
|
|
|
—
|
|
|
(5,803
|
)
|
|
—
|
|
|
(5,803
|
)
|
|||||
Balance December 31, 2019
|
$
|
9,741
|
|
|
$
|
110,836
|
|
|
$
|
43,283
|
|
|
$
|
2,175
|
|
|
$
|
166,035
|
|
|
Years Ended December 31,
|
||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Cash Flows From Operating Activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
14,241
|
|
|
$
|
14,213
|
|
|
$
|
11,751
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|||||
Provision for loan losses
|
4,860
|
|
|
1,354
|
|
|
3,822
|
|
|||
Depreciation and amortization
|
3,057
|
|
|
3,289
|
|
|
2,444
|
|
|||
Amortization/Accretion of investments
|
1,347
|
|
|
1,445
|
|
|
1,788
|
|
|||
Loss (gain) on sale/call of securities
|
157
|
|
|
1,830
|
|
|
(1,397
|
)
|
|||
Gain on sale of assets
|
(1,304
|
)
|
|
(301
|
)
|
|
(361
|
)
|
|||
Repossessed asset write downs, gain and losses on dispositions
|
90
|
|
|
(47
|
)
|
|
103
|
|
|||
FHLB stock dividends
|
(63
|
)
|
|
(42
|
)
|
|
(23
|
)
|
|||
Net decrease in loans held for sale
|
344
|
|
|
964
|
|
|
347
|
|
|||
Change in other assets and liabilities, net
|
6,349
|
|
|
4,184
|
|
|
(6,199
|
)
|
|||
Net Cash Provided by Operating Activities
|
29,078
|
|
|
26,889
|
|
|
12,275
|
|
|||
|
|
|
|
|
|
||||||
Cash Flows From Investing Activities:
|
|
|
|
|
|
|
|
|
|||
Proceeds from maturities and calls of HTM securities
|
21,190
|
|
|
11,197
|
|
|
11,703
|
|
|||
Proceeds from maturities, calls and sales of AFS securities
|
279,590
|
|
|
384,549
|
|
|
542,894
|
|
|||
Funds invested in HTM securities
|
—
|
|
|
—
|
|
|
(30,530
|
)
|
|||
Funds Invested in AFS securities
|
(274,437
|
)
|
|
(309,346
|
)
|
|
(517,185
|
)
|
|||
Net increase in loans
|
(123,553
|
)
|
|
(76,354
|
)
|
|
(80,816
|
)
|
|||
Purchases of premises and equipment
|
(11,933
|
)
|
|
(3,787
|
)
|
|
(6,814
|
)
|
|||
Proceeds from sales of premises and equipment
|
12
|
|
|
46
|
|
|
51
|
|
|||
Proceeds from sales of other real estate owned
|
550
|
|
|
484
|
|
|
608
|
|
|||
Cash paid in excess of cash received in acquisition
|
(23,325
|
)
|
|
—
|
|
|
(2,907
|
)
|
|||
Net Cash (Used In) Provided By Investing Activities
|
(131,906
|
)
|
|
6,789
|
|
|
(82,996
|
)
|
|||
|
|
|
|
|
|
||||||
Cash Flows From Financing Activities:
|
|
|
|
|
|
|
|
|
|||
Net increase in deposits
|
18,408
|
|
|
80,336
|
|
|
95,879
|
|
|||
Net decrease in federal funds purchased and short-term borrowings
|
(28
|
)
|
|
(15,500
|
)
|
|
(700
|
)
|
|||
Proceeds from long-term borrowings, net of costs
|
32,465
|
|
|
—
|
|
|
3,750
|
|
|||
Repayment of long-term borrowings
|
(3,754
|
)
|
|
(2,941
|
)
|
|
(3,081
|
)
|
|||
Common stock issued in private placement
|
1,000
|
|
|
—
|
|
|
—
|
|
|||
Dividends paid
|
(5,803
|
)
|
|
(5,636
|
)
|
|
(5,210
|
)
|
|||
Net Cash Provided By Financing Activities
|
42,288
|
|
|
56,259
|
|
|
90,638
|
|
|||
|
|
|
|
|
|
||||||
Net (Decrease) Increase In Cash and Cash Equivalents
|
(60,540
|
)
|
|
89,937
|
|
|
19,917
|
|
|||
Cash and Cash Equivalents at the Beginning of the Period
|
127,965
|
|
|
38,028
|
|
|
18,111
|
|
|||
Cash and Cash Equivalents at the End of the Period
|
$
|
67,425
|
|
|
$
|
127,965
|
|
|
$
|
38,028
|
|
|
|
|
|
|
|
||||||
Noncash Activities:
|
|
|
|
|
|
|
|
|
|||
Acquisition of real estate in settlement of loans
|
$
|
2,789
|
|
|
$
|
297
|
|
|
$
|
1,374
|
|
Common stock issued in acquisition
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,650
|
|
|
|
|
|
|
|
||||||
Cash Paid During the Period:
|
|
|
|
|
|
|
|
||||
Interest on deposits and borrowed funds
|
$
|
27,871
|
|
|
$
|
19,902
|
|
|
$
|
13,836
|
|
Federal income taxes
|
$
|
3,250
|
|
|
$
|
2,400
|
|
|
$
|
10,700
|
|
State income taxes
|
$
|
23
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(in thousands)
|
Union Bancshares, Incorporated
|
||
|
|
||
Cash and due from banks
|
$
|
20,058
|
|
Securities available for sale
|
38,813
|
|
|
Loans
|
184,165
|
|
|
Premises and equipment
|
7,223
|
|
|
Goodwill
|
9,469
|
|
|
Intangible assets
|
4,213
|
|
|
Other real estate
|
1,595
|
|
|
Other assets
|
9,303
|
|
|
Total assets acquired
|
$
|
274,839
|
|
|
|
|
|
Deposits
|
204,983
|
|
|
FHLB borrowings
|
16,617
|
|
|
Repurchase agreements
|
6,863
|
|
|
Other liabilities
|
2,993
|
|
|
Total liabilities assumed
|
$
|
231,456
|
|
Net assets acquired
|
$
|
43,383
|
|
(in thousands, except share data)
|
2019
|
|
2018
|
||||
Net Interest Income
|
$
|
70,105
|
|
|
$
|
67,194
|
|
Noninterest Income
|
9,877
|
|
|
7,075
|
|
||
Noninterest Expense
|
54,482
|
|
|
51,261
|
|
||
Net Income
|
16,459
|
|
|
17,259
|
|
||
|
|
|
|
||||
Earnings per common share
|
$
|
1.70
|
|
|
$
|
1.78
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||||||||||
(in thousands)
|
Amortized Cost
|
|
Gross
Unrealized Gains
|
|
Gross
Unrealized Losses
|
|
Fair Value
|
|
Amortized Cost
|
|
Gross
Unrealized Gains
|
|
Gross
Unrealized Losses
|
|
Fair Value
|
||||||||||||||||
Available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. Treasuries
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
U.S. Government Agencies
|
16,380
|
|
|
15
|
|
|
(2
|
)
|
|
16,393
|
|
|
146,911
|
|
|
—
|
|
|
(5,522
|
)
|
|
141,389
|
|
||||||||
Corporate debt securities
|
94,561
|
|
|
1,110
|
|
|
(302
|
)
|
|
95,369
|
|
|
76,310
|
|
|
72
|
|
|
(3,504
|
)
|
|
72,878
|
|
||||||||
Other securities
|
497
|
|
|
—
|
|
|
—
|
|
|
497
|
|
|
483
|
|
|
—
|
|
|
—
|
|
|
483
|
|
||||||||
Municipal bonds
|
30,297
|
|
|
1,870
|
|
|
(14
|
)
|
|
32,153
|
|
|
32,956
|
|
|
1,120
|
|
|
(175
|
)
|
|
33,901
|
|
||||||||
Collateralized mortgage obligations
|
16,400
|
|
|
40
|
|
|
(43
|
)
|
|
16,397
|
|
|
918
|
|
|
—
|
|
|
(14
|
)
|
|
904
|
|
||||||||
Mortgage-backed securities
|
179,546
|
|
|
317
|
|
|
(238
|
)
|
|
179,625
|
|
|
48,434
|
|
|
—
|
|
|
(1,012
|
)
|
|
47,422
|
|
||||||||
Total available for sale securities
|
$
|
337,681
|
|
|
$
|
3,352
|
|
|
$
|
(599
|
)
|
|
$
|
340,434
|
|
|
$
|
306,012
|
|
|
$
|
1,192
|
|
|
$
|
(10,227
|
)
|
|
$
|
296,977
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. Government Agencies
|
$
|
18,175
|
|
|
$
|
—
|
|
|
$
|
(32
|
)
|
|
$
|
18,143
|
|
|
$
|
28,172
|
|
|
$
|
—
|
|
|
$
|
(1,081
|
)
|
|
$
|
27,091
|
|
Municipal bonds
|
5,107
|
|
|
182
|
|
|
—
|
|
|
5,289
|
|
|
5,227
|
|
|
—
|
|
|
(101
|
)
|
|
5,126
|
|
||||||||
Mortgage-backed securities
|
63,297
|
|
|
200
|
|
|
(112
|
)
|
|
63,385
|
|
|
74,927
|
|
|
—
|
|
|
(2,304
|
)
|
|
72,623
|
|
||||||||
Total held to maturity securities
|
$
|
86,579
|
|
|
$
|
382
|
|
|
$
|
(144
|
)
|
|
$
|
86,817
|
|
|
$
|
108,326
|
|
|
$
|
—
|
|
|
$
|
(3,486
|
)
|
|
$
|
104,840
|
|
|
December 31, 2019
|
||||||
(in thousands)
|
Amortized Cost
|
|
Fair Value
|
||||
Available for sale:
|
|
|
|
||||
Due in one year or less
|
$
|
4,499
|
|
|
$
|
4,520
|
|
Due after one year through five years
|
38,029
|
|
|
38,729
|
|
||
Due after five years through 10 years
|
76,584
|
|
|
77,943
|
|
||
Over 10 years
|
22,623
|
|
|
23,220
|
|
||
Subtotal
|
141,735
|
|
|
144,412
|
|
||
Collateralized mortgage obligations
|
16,400
|
|
|
16,397
|
|
||
Mortgage-backed Securities
|
179,546
|
|
|
179,625
|
|
||
Total available for sale securities
|
$
|
337,681
|
|
|
$
|
340,434
|
|
|
|
|
|
||||
Held to maturity:
|
|
|
|
|
|
||
Due in one year or less
|
$
|
5,050
|
|
|
$
|
5,047
|
|
Due after one year through five years
|
7,327
|
|
|
7,318
|
|
||
Due after five years through 10 years
|
7,496
|
|
|
7,543
|
|
||
Over 10 years
|
3,409
|
|
|
3,524
|
|
||
Subtotal
|
23,282
|
|
|
23,432
|
|
||
Mortgage-backed Securities
|
63,297
|
|
|
63,385
|
|
||
Total held to maturity securities
|
$
|
86,579
|
|
|
$
|
86,817
|
|
|
December 31, 2019
|
|||||||||||||||||||||||||||||||
|
Less Than 12 Months
|
|
12 Months or More
|
|
Total
|
|||||||||||||||||||||||||||
(in thousands)
|
Number
of Securities
|
|
Fair Value
|
|
Gross
Unrealized Losses
|
|
Number
of Securities
|
|
Fair Value
|
|
Gross
Unrealized Losses
|
|
Number
of Securities
|
|
Fair Value
|
|
Gross
Unrealized Losses
|
|||||||||||||||
Available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. Treasuries
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
U.S. Government Agencies
|
1
|
|
|
4,398
|
|
|
(1
|
)
|
|
1
|
|
|
149
|
|
|
(1
|
)
|
|
2
|
|
|
4,547
|
|
|
(2
|
)
|
||||||
Corporate debt securities
|
42
|
|
|
21,269
|
|
|
(174
|
)
|
|
12
|
|
|
3,184
|
|
|
(128
|
)
|
|
54
|
|
|
24,453
|
|
|
(302
|
)
|
||||||
Other securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Municipal bonds
|
9
|
|
|
4,285
|
|
|
(14
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
4,285
|
|
|
(14
|
)
|
||||||
Collateralized mortgage obligations
|
12
|
|
|
10,022
|
|
|
(43
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
10,022
|
|
|
(43
|
)
|
||||||
Mortgage-backed securities
|
57
|
|
|
91,753
|
|
|
(186
|
)
|
|
9
|
|
|
12,121
|
|
|
(52
|
)
|
|
66
|
|
|
103,874
|
|
|
(238
|
)
|
||||||
Total available for sale securities
|
121
|
|
|
$
|
131,727
|
|
|
$
|
(418
|
)
|
|
22
|
|
|
$
|
15,454
|
|
|
$
|
(181
|
)
|
|
143
|
|
|
$
|
147,181
|
|
|
$
|
(599
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Government Agencies
|
2
|
|
|
$
|
2,177
|
|
|
$
|
(2
|
)
|
|
8
|
|
|
$
|
15,965
|
|
|
$
|
(30
|
)
|
|
10
|
|
|
$
|
18,142
|
|
|
$
|
(32
|
)
|
Municipal bonds
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
50
|
|
|
—
|
|
|
1
|
|
|
50
|
|
|
—
|
|
||||||
Mortgage-backed securities
|
7
|
|
|
8,880
|
|
|
(58
|
)
|
|
10
|
|
|
11,343
|
|
|
(54
|
)
|
|
17
|
|
|
20,223
|
|
|
(112
|
)
|
||||||
Total held to maturity securities
|
9
|
|
|
$
|
11,057
|
|
|
$
|
(60
|
)
|
|
19
|
|
|
$
|
27,358
|
|
|
$
|
(84
|
)
|
|
28
|
|
|
$
|
38,415
|
|
|
$
|
(144
|
)
|
|
December 31, 2018
|
|||||||||||||||||||||||||||||||
|
Less Than 12 Months
|
|
12 Months or More
|
|
Total
|
|||||||||||||||||||||||||||
(in thousands)
|
Number
of Securities
|
|
Fair Value
|
|
Gross
Unrealized Losses
|
|
Number
of Securities
|
|
Fair Value
|
|
Gross
Unrealized Losses
|
|
Number
of Securities
|
|
Fair Value
|
|
Gross
Unrealized Losses
|
|||||||||||||||
Available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. Treasuries
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
U.S. Government Agencies
|
1
|
|
|
4,227
|
|
|
(273
|
)
|
|
50
|
|
|
137,162
|
|
|
(5,249
|
)
|
|
51
|
|
|
141,389
|
|
|
(5,522
|
)
|
||||||
Corporate debt securities
|
37
|
|
|
9,560
|
|
|
(252
|
)
|
|
183
|
|
|
58,877
|
|
|
(3,252
|
)
|
|
220
|
|
|
68,437
|
|
|
(3,504
|
)
|
||||||
Other securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Municipal bonds
|
1
|
|
|
115
|
|
|
—
|
|
|
19
|
|
|
8,436
|
|
|
(175
|
)
|
|
20
|
|
|
8,551
|
|
|
(175
|
)
|
||||||
Collateralized mortgage obligations
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
904
|
|
|
(14
|
)
|
|
5
|
|
|
904
|
|
|
(14
|
)
|
||||||
Mortgage-backed securities
|
16
|
|
|
19,453
|
|
|
(73
|
)
|
|
38
|
|
|
27,969
|
|
|
(939
|
)
|
|
54
|
|
|
47,422
|
|
|
(1,012
|
)
|
||||||
Total available for sale securities
|
55
|
|
|
$
|
33,355
|
|
|
$
|
(598
|
)
|
|
295
|
|
|
$
|
233,348
|
|
|
$
|
(9,629
|
)
|
|
350
|
|
|
$
|
266,703
|
|
|
$
|
(10,227
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Government Agencies
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
14
|
|
|
$
|
27,091
|
|
|
$
|
(1,081
|
)
|
|
14
|
|
|
$
|
27,091
|
|
|
$
|
(1,081
|
)
|
Municipal bonds
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
5,126
|
|
|
(101
|
)
|
|
9
|
|
|
5,126
|
|
|
(101
|
)
|
||||||
Mortgage-backed securities
|
—
|
|
|
—
|
|
|
—
|
|
|
56
|
|
|
72,623
|
|
|
(2,304
|
)
|
|
56
|
|
|
72,623
|
|
|
(2,304
|
)
|
||||||
Total held to maturity securities
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
79
|
|
|
$
|
104,840
|
|
|
$
|
(3,486
|
)
|
|
79
|
|
|
$
|
104,840
|
|
|
$
|
(3,486
|
)
|
(in thousands)
|
Year Ended December 31, 2019
|
|
Year Ended December 31, 2018
|
|
Year Ended December 31, 2017
|
||||||
Beginning balance of credit losses at beginning of year
|
$
|
60
|
|
|
$
|
60
|
|
|
$
|
60
|
|
Other-than-temporary impairment credit losses on securities not previously OTTI
|
—
|
|
|
—
|
|
|
—
|
|
|||
Increases for additional credit losses on securities previously determined to be OTTI
|
—
|
|
|
—
|
|
|
—
|
|
|||
Reduction for increases in cash flows
|
—
|
|
|
—
|
|
|
—
|
|
|||
Reduction due to credit impaired securities sold or fully settled
|
(60
|
)
|
|
—
|
|
|
—
|
|
|||
Ending balance of cumulative credit losses recognized in earnings at end of year
|
$
|
—
|
|
|
$
|
60
|
|
|
$
|
60
|
|
|
December 31, 2019
|
||||||
(in thousands)
|
Amortized Cost
|
|
Fair Value
|
||||
Federal Home Loan Mortgage Corporation (Freddie Mac-FHLMC)
|
96,966
|
|
|
97,036
|
|
||
Federal National Mortgage Association (Fannie Mae-FNMA)
|
146,702
|
|
|
146,758
|
|
||
Federal Farm Credit Bank (FFCB)
|
18,227
|
|
|
18,211
|
|
||
Total
|
$
|
261,895
|
|
|
$
|
262,005
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||
(in thousands except for %)
|
Balance
|
|
As % of Category
|
|
Balance
|
|
As % of Category
|
||||||
Real Estate:
|
|
|
|
|
|
|
|
||||||
Construction & land development
|
$
|
172,247
|
|
|
11.3
|
%
|
|
$
|
124,644
|
|
|
10.1
|
%
|
Farmland
|
22,741
|
|
|
1.5
|
%
|
|
18,401
|
|
|
1.5
|
%
|
||
1- 4 Family
|
289,635
|
|
|
18.9
|
%
|
|
172,760
|
|
|
14.1
|
%
|
||
Multifamily
|
23,973
|
|
|
1.6
|
%
|
|
42,918
|
|
|
3.5
|
%
|
||
Non-farm non-residential
|
616,536
|
|
|
40.3
|
%
|
|
586,263
|
|
|
47.7
|
%
|
||
Total Real Estate
|
1,125,132
|
|
|
73.6
|
%
|
|
944,986
|
|
|
76.9
|
%
|
||
Non-Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
||
Agricultural
|
26,710
|
|
|
1.8
|
%
|
|
23,108
|
|
|
1.9
|
%
|
||
Commercial and industrial
|
268,256
|
|
|
17.5
|
%
|
|
200,877
|
|
|
16.4
|
%
|
||
Consumer and other
|
108,868
|
|
|
7.1
|
%
|
|
59,443
|
|
|
4.8
|
%
|
||
Total Non-Real Estate
|
403,834
|
|
|
26.4
|
%
|
|
283,428
|
|
|
23.1
|
%
|
||
Total Loans Before Unearned Income
|
1,528,966
|
|
|
100.0
|
%
|
|
1,228,414
|
|
|
100.0
|
%
|
||
Unearned income
|
(3,476
|
)
|
|
|
|
|
(3,146
|
)
|
|
|
|
||
Total Loans Net of Unearned Income
|
$
|
1,525,490
|
|
|
|
|
|
$
|
1,225,268
|
|
|
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
(in thousands)
|
Fixed
|
|
Floating
|
|
Total
|
|
Fixed
|
|
Floating
|
|
Total
|
||||||||||||
One year or less
|
$
|
205,596
|
|
|
$
|
104,859
|
|
|
$
|
310,455
|
|
|
$
|
108,160
|
|
|
$
|
80,895
|
|
|
$
|
189,055
|
|
One to five years
|
509,455
|
|
|
286,131
|
|
|
795,586
|
|
|
393,344
|
|
|
287,737
|
|
|
681,081
|
|
||||||
Five to 15 years
|
147,502
|
|
|
65,713
|
|
|
213,215
|
|
|
118,715
|
|
|
86,779
|
|
|
205,494
|
|
||||||
Over 15 years
|
143,695
|
|
|
51,612
|
|
|
195,307
|
|
|
85,611
|
|
|
58,430
|
|
|
144,041
|
|
||||||
Subtotal
|
$
|
1,006,248
|
|
|
$
|
508,315
|
|
|
1,514,563
|
|
|
$
|
705,830
|
|
|
$
|
513,841
|
|
|
1,219,671
|
|
||
Nonaccrual loans
|
|
|
|
|
|
|
14,403
|
|
|
|
|
|
|
|
|
8,743
|
|
||||||
Total Loans Before Unearned Income
|
|
|
|
|
|
|
1,528,966
|
|
|
|
|
|
|
|
|
1,228,414
|
|
||||||
Unearned income
|
|
|
|
|
|
|
(3,476
|
)
|
|
|
|
|
|
|
|
(3,146
|
)
|
||||||
Total Loans Net of Unearned Income
|
|
|
|
|
|
|
$
|
1,525,490
|
|
|
|
|
|
|
|
|
$
|
1,225,268
|
|
|
As of December 31, 2019
|
||||||||||||||||||||||
(in thousands)
|
30-89 Days Past Due
|
|
90 Days or
Greater Past Due
|
|
Total Past Due
|
|
Current
|
|
Total Loans
|
|
Recorded Investment
90 Days Accruing
|
||||||||||||
Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction & land development
|
$
|
760
|
|
|
$
|
429
|
|
|
$
|
1,189
|
|
|
$
|
171,058
|
|
|
$
|
172,247
|
|
|
$
|
48
|
|
Farmland
|
6
|
|
|
1,274
|
|
|
1,280
|
|
|
21,461
|
|
|
22,741
|
|
|
—
|
|
||||||
1- 4 family
|
8,521
|
|
|
3,682
|
|
|
12,203
|
|
|
277,432
|
|
|
289,635
|
|
|
923
|
|
||||||
Multifamily
|
—
|
|
|
—
|
|
|
—
|
|
|
23,973
|
|
|
23,973
|
|
|
—
|
|
||||||
Non-farm non-residential
|
11,279
|
|
|
6,249
|
|
|
17,528
|
|
|
599,008
|
|
|
616,536
|
|
|
1,603
|
|
||||||
Total Real Estate
|
20,566
|
|
|
11,634
|
|
|
32,200
|
|
|
1,092,932
|
|
|
1,125,132
|
|
|
2,574
|
|
||||||
Non-Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Agricultural
|
310
|
|
|
4,800
|
|
|
5,110
|
|
|
21,600
|
|
|
26,710
|
|
|
—
|
|
||||||
Commercial and industrial
|
2,801
|
|
|
342
|
|
|
3,143
|
|
|
265,113
|
|
|
268,256
|
|
|
15
|
|
||||||
Consumer and other
|
794
|
|
|
266
|
|
|
1,060
|
|
|
107,808
|
|
|
108,868
|
|
|
50
|
|
||||||
Total Non-Real Estate
|
3,905
|
|
|
5,408
|
|
|
9,313
|
|
|
394,521
|
|
|
403,834
|
|
|
65
|
|
||||||
Total Loans Before Unearned Income
|
$
|
24,471
|
|
|
$
|
17,042
|
|
|
$
|
41,513
|
|
|
$
|
1,487,453
|
|
|
1,528,966
|
|
|
$
|
2,639
|
|
|
Unearned income
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,476
|
)
|
|
|
|
||||||
Total Loans Net of Unearned Income
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,525,490
|
|
|
|
|
|
As of December 31, 2018
|
||||||||||||||||||||||
(in thousands)
|
30-89 Days Past Due
|
|
90 Days or
Greater Past Due
|
|
Total Past Due
|
|
Current
|
|
Total Loans
|
|
Recorded Investment
90 Days Accruing
|
||||||||||||
Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction & land development
|
$
|
936
|
|
|
$
|
311
|
|
|
$
|
1,247
|
|
|
$
|
123,397
|
|
|
$
|
124,644
|
|
|
$
|
—
|
|
Farmland
|
—
|
|
|
1,293
|
|
|
1,293
|
|
|
17,108
|
|
|
18,401
|
|
|
—
|
|
||||||
1- 4 family
|
4,333
|
|
|
2,272
|
|
|
6,605
|
|
|
166,155
|
|
|
172,760
|
|
|
26
|
|
||||||
Multifamily
|
648
|
|
|
—
|
|
|
648
|
|
|
42,270
|
|
|
42,918
|
|
|
—
|
|
||||||
Non-farm non-residential
|
4,897
|
|
|
864
|
|
|
5,761
|
|
|
580,502
|
|
|
586,263
|
|
|
—
|
|
||||||
Total Real Estate
|
10,814
|
|
|
4,740
|
|
|
15,554
|
|
|
929,432
|
|
|
944,986
|
|
|
26
|
|
||||||
Non-Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Agricultural
|
528
|
|
|
3,651
|
|
|
4,179
|
|
|
18,929
|
|
|
23,108
|
|
|
—
|
|
||||||
Commercial and industrial
|
742
|
|
|
370
|
|
|
1,112
|
|
|
199,765
|
|
|
200,877
|
|
|
53
|
|
||||||
Consumer and other
|
537
|
|
|
127
|
|
|
664
|
|
|
58,779
|
|
|
59,443
|
|
|
66
|
|
||||||
Total Non-Real Estate
|
1,807
|
|
|
4,148
|
|
|
5,955
|
|
|
277,473
|
|
|
283,428
|
|
|
119
|
|
||||||
Total Loans Before Unearned Income
|
$
|
12,621
|
|
|
$
|
8,888
|
|
|
$
|
21,509
|
|
|
$
|
1,206,905
|
|
|
1,228,414
|
|
|
$
|
145
|
|
|
Unearned income
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,146
|
)
|
|
|
|
||||||
Total Loans Net of Unearned Income
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,225,268
|
|
|
|
|
|
As of December 31,
|
||||||
(in thousands)
|
2019
|
|
2018
|
||||
Real Estate:
|
|
|
|
||||
Construction & land development
|
$
|
381
|
|
|
$
|
311
|
|
Farmland
|
1,274
|
|
|
1,293
|
|
||
1- 4 family
|
2,759
|
|
|
2,246
|
|
||
Multifamily
|
—
|
|
|
—
|
|
||
Non-farm non-residential
|
4,646
|
|
|
864
|
|
||
Total Real Estate
|
9,060
|
|
|
4,714
|
|
||
Non-Real Estate:
|
|
|
|
|
|
||
Agricultural
|
4,800
|
|
|
3,651
|
|
||
Commercial and industrial
|
327
|
|
|
317
|
|
||
Consumer and other
|
216
|
|
|
61
|
|
||
Total Non-Real Estate
|
5,343
|
|
|
4,029
|
|
||
Total Nonaccrual Loans
|
$
|
14,403
|
|
|
$
|
8,743
|
|
|
As of December 31, 2019
|
|
As of December 31, 2018
|
||||||||||||||||||||||||||||||||||||
(in thousands)
|
Pass
|
|
Special Mention
|
|
Substandard
|
|
Doubtful
|
|
Total
|
|
Pass
|
|
Special Mention
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||||||||||||
Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Construction & land development
|
$
|
163,808
|
|
|
$
|
6,180
|
|
|
$
|
2,259
|
|
|
$
|
—
|
|
|
$
|
172,247
|
|
|
$
|
116,062
|
|
|
$
|
5,698
|
|
|
$
|
2,884
|
|
|
$
|
—
|
|
|
$
|
124,644
|
|
Farmland
|
18,223
|
|
|
3,177
|
|
|
1,341
|
|
|
—
|
|
|
22,741
|
|
|
13,151
|
|
|
3,888
|
|
|
1,362
|
|
|
—
|
|
|
18,401
|
|
||||||||||
1- 4 family
|
271,392
|
|
|
4,751
|
|
|
13,492
|
|
|
—
|
|
|
289,635
|
|
|
160,581
|
|
|
2,815
|
|
|
9,364
|
|
|
—
|
|
|
172,760
|
|
||||||||||
Multifamily
|
16,025
|
|
|
805
|
|
|
7,143
|
|
|
—
|
|
|
23,973
|
|
|
35,554
|
|
|
—
|
|
|
7,364
|
|
|
—
|
|
|
42,918
|
|
||||||||||
Non-farm non-residential
|
589,800
|
|
|
7,743
|
|
|
18,993
|
|
|
—
|
|
|
616,536
|
|
|
564,993
|
|
|
2,888
|
|
|
17,859
|
|
|
523
|
|
|
586,263
|
|
||||||||||
Total Real Estate
|
1,059,248
|
|
|
22,656
|
|
|
43,228
|
|
|
—
|
|
|
1,125,132
|
|
|
890,341
|
|
|
15,289
|
|
|
38,833
|
|
|
523
|
|
|
944,986
|
|
||||||||||
Non-Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agricultural
|
21,529
|
|
|
48
|
|
|
5,133
|
|
|
—
|
|
|
26,710
|
|
|
19,050
|
|
|
43
|
|
|
4,015
|
|
|
—
|
|
|
23,108
|
|
||||||||||
Commercial and industrial
|
262,416
|
|
|
1,199
|
|
|
4,641
|
|
|
—
|
|
|
268,256
|
|
|
186,176
|
|
|
10,930
|
|
|
3,771
|
|
|
—
|
|
|
200,877
|
|
||||||||||
Consumer and other
|
108,618
|
|
|
180
|
|
|
70
|
|
|
—
|
|
|
108,868
|
|
|
59,119
|
|
|
151
|
|
|
173
|
|
|
—
|
|
|
59,443
|
|
||||||||||
Total Non-Real Estate
|
392,563
|
|
|
1,427
|
|
|
9,844
|
|
|
—
|
|
|
403,834
|
|
|
264,345
|
|
|
11,124
|
|
|
7,959
|
|
|
—
|
|
|
283,428
|
|
||||||||||
Total Loans Before Unearned Income
|
$
|
1,451,811
|
|
|
$
|
24,083
|
|
|
$
|
53,072
|
|
|
$
|
—
|
|
|
1,528,966
|
|
|
$
|
1,154,686
|
|
|
$
|
26,413
|
|
|
$
|
46,792
|
|
|
$
|
523
|
|
|
1,228,414
|
|
||
Unearned income
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,476
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,146
|
)
|
||||||||||
Total Loans Net of Unearned Income
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,525,490
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,225,268
|
|
(in thousands)
|
As of December 31, 2019
|
|
As of December 31, 2018
|
||||
Real Estate:
|
|
|
|
||||
Construction & land development
|
$
|
526
|
|
|
$
|
—
|
|
Farmland
|
—
|
|
|
1
|
|
||
1- 4 family
|
6,402
|
|
|
48
|
|
||
Multifamily
|
—
|
|
|
—
|
|
||
Non-farm non-residential
|
2,294
|
|
|
2,301
|
|
||
Total Real Estate
|
9,222
|
|
|
2,350
|
|
||
Non-Real Estate:
|
|
|
|
|
|||
Agricultural
|
—
|
|
|
—
|
|
||
Commercial and industrial
|
1,198
|
|
|
909
|
|
||
Consumer and other
|
—
|
|
|
—
|
|
||
Total Non-Real Estate
|
1,198
|
|
|
909
|
|
||
Total
|
$
|
10,420
|
|
|
$
|
3,259
|
|
(in thousands)
|
Year Ended December 31, 2019
|
|
Year Ended December 31, 2018
|
||||
Balance, beginning of period
|
$
|
613
|
|
|
$
|
1,031
|
|
Acquisition accretable yield
|
3,367
|
|
|
—
|
|
||
Accretion
|
(831
|
)
|
|
(418
|
)
|
||
Net transfers from nonaccretable difference to accretable yield
|
498
|
|
|
—
|
|
||
Balance, end of period
|
$
|
3,647
|
|
|
$
|
613
|
|
|
As of December 31,
|
||||||||||||||||||||||||||||||||||||||
|
2019
|
|
2018
|
||||||||||||||||||||||||||||||||||||
(in thousands)
|
Beginning Allowance (12/31/18)
|
|
Charge-offs
|
|
Recoveries
|
|
Provision
|
|
Ending Allowance (12/31/19)
|
|
Beginning Allowance (12/31/17)
|
|
Charge-offs
|
|
Recoveries
|
|
Provision
|
|
Ending Allowance (12/31/18)
|
||||||||||||||||||||
Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Construction & land development
|
$
|
581
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(158
|
)
|
|
$
|
423
|
|
|
$
|
628
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
(50
|
)
|
|
$
|
581
|
|
Farmland
|
41
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
50
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
36
|
|
|
41
|
|
||||||||||
1- 4 family
|
911
|
|
|
(552
|
)
|
|
39
|
|
|
629
|
|
|
1,027
|
|
|
1,078
|
|
|
(99
|
)
|
|
90
|
|
|
(158
|
)
|
|
911
|
|
||||||||||
Multifamily
|
1,318
|
|
|
—
|
|
|
—
|
|
|
(280
|
)
|
|
1,038
|
|
|
994
|
|
|
—
|
|
|
20
|
|
|
304
|
|
|
1,318
|
|
||||||||||
Non-farm non-residential
|
4,771
|
|
|
(2,603
|
)
|
|
5
|
|
|
3,104
|
|
|
5,277
|
|
|
2,811
|
|
|
(404
|
)
|
|
89
|
|
|
2,275
|
|
|
4,771
|
|
||||||||||
Total Real Estate
|
7,622
|
|
|
(3,155
|
)
|
|
44
|
|
|
3,304
|
|
|
7,815
|
|
|
5,516
|
|
|
(503
|
)
|
|
202
|
|
|
2,407
|
|
|
7,622
|
|
||||||||||
Non-Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agricultural
|
339
|
|
|
(40
|
)
|
|
—
|
|
|
(204
|
)
|
|
95
|
|
|
187
|
|
|
(300
|
)
|
|
26
|
|
|
426
|
|
|
339
|
|
||||||||||
Commercial and industrial
|
1,909
|
|
|
(879
|
)
|
|
267
|
|
|
612
|
|
|
1,909
|
|
|
2,377
|
|
|
(179
|
)
|
|
1,642
|
|
|
(1,931
|
)
|
|
1,909
|
|
||||||||||
Consumer and other
|
891
|
|
|
(1,190
|
)
|
|
246
|
|
|
1,163
|
|
|
1,110
|
|
|
1,125
|
|
|
(907
|
)
|
|
216
|
|
|
457
|
|
|
891
|
|
||||||||||
Unallocated
|
15
|
|
|
—
|
|
|
—
|
|
|
(15
|
)
|
|
—
|
|
|
20
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
15
|
|
||||||||||
Total Non-Real Estate
|
3,154
|
|
|
(2,109
|
)
|
|
513
|
|
|
1,556
|
|
|
3,114
|
|
|
3,709
|
|
|
(1,386
|
)
|
|
1,884
|
|
|
(1,053
|
)
|
|
3,154
|
|
||||||||||
Total
|
$
|
10,776
|
|
|
$
|
(5,264
|
)
|
|
$
|
557
|
|
|
$
|
4,860
|
|
|
$
|
10,929
|
|
|
$
|
9,225
|
|
|
$
|
(1,889
|
)
|
|
$
|
2,086
|
|
|
$
|
1,354
|
|
|
$
|
10,776
|
|
|
As of December 31,
|
||||||||||||||||||
|
2017
|
||||||||||||||||||
(in thousands)
|
Beginning Allowance (12/31/16)
|
|
Charge-offs
|
|
Recoveries
|
|
Provision
|
|
Ending Allowance (12/31/17)
|
||||||||||
Real Estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction & land development
|
$
|
1,232
|
|
|
$
|
—
|
|
|
$
|
43
|
|
|
$
|
(647
|
)
|
|
$
|
628
|
|
Farmland
|
19
|
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
|
5
|
|
|||||
1- 4 family
|
1,204
|
|
|
(33
|
)
|
|
92
|
|
|
(185
|
)
|
|
1,078
|
|
|||||
Multifamily
|
591
|
|
|
—
|
|
|
40
|
|
|
363
|
|
|
994
|
|
|||||
Non-farm non-residential
|
3,451
|
|
|
(1,291
|
)
|
|
85
|
|
|
566
|
|
|
2,811
|
|
|||||
Total Real Estate
|
6,497
|
|
|
(1,324
|
)
|
|
260
|
|
|
83
|
|
|
5,516
|
|
|||||
Non-Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Agricultural
|
74
|
|
|
(162
|
)
|
|
138
|
|
|
137
|
|
|
187
|
|
|||||
Commercial and industrial
|
3,543
|
|
|
(3,629
|
)
|
|
30
|
|
|
2,433
|
|
|
2,377
|
|
|||||
Consumer and other
|
972
|
|
|
(1,247
|
)
|
|
223
|
|
|
1,177
|
|
|
1,125
|
|
|||||
Unallocated
|
28
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
20
|
|
|||||
Total Non-Real Estate
|
4,617
|
|
|
(5,038
|
)
|
|
391
|
|
|
3,739
|
|
|
3,709
|
|
|||||
Total
|
$
|
11,114
|
|
|
$
|
(6,362
|
)
|
|
$
|
651
|
|
|
$
|
3,822
|
|
|
$
|
9,225
|
|
|
As of December 31, 2019
|
||||||||||||||||||||||||||||||
(in thousands)
|
Allowance
Individually
Evaluated
for Impairment
|
|
Allowance Individually Evaluated for Purchased Credit-Impairment
|
|
Allowance
Collectively Evaluated
for Impairment
|
|
Total Allowance
for Credit Losses
|
|
Loans
Individually
Evaluated
for Impairment
|
|
Loans Individually Evaluated for Purchased Credit-Impairment
|
|
Loans
Collectively
Evaluated
for Impairment
|
|
Total Loans
before
Unearned Income
|
||||||||||||||||
Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Construction & land development
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
423
|
|
|
$
|
423
|
|
|
$
|
—
|
|
|
$
|
526
|
|
|
$
|
171,721
|
|
|
$
|
172,247
|
|
Farmland
|
—
|
|
|
—
|
|
|
50
|
|
|
50
|
|
|
543
|
|
|
—
|
|
|
22,198
|
|
|
22,741
|
|
||||||||
1- 4 family
|
34
|
|
|
—
|
|
|
993
|
|
|
1,027
|
|
|
1,058
|
|
|
6,402
|
|
|
282,175
|
|
|
289,635
|
|
||||||||
Multifamily
|
—
|
|
|
—
|
|
|
1,038
|
|
|
1,038
|
|
|
—
|
|
|
—
|
|
|
23,973
|
|
|
23,973
|
|
||||||||
Non-farm non-residential
|
1,879
|
|
|
—
|
|
|
3,398
|
|
|
5,277
|
|
|
12,120
|
|
|
2,294
|
|
|
602,122
|
|
|
616,536
|
|
||||||||
Total Real Estate
|
1,913
|
|
|
—
|
|
|
5,902
|
|
|
7,815
|
|
|
13,721
|
|
|
9,222
|
|
|
1,102,189
|
|
|
1,125,132
|
|
||||||||
Non-Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agricultural
|
—
|
|
|
—
|
|
|
95
|
|
|
95
|
|
|
4,030
|
|
|
—
|
|
|
22,680
|
|
|
26,710
|
|
||||||||
Commercial and industrial
|
111
|
|
|
—
|
|
|
1,798
|
|
|
1,909
|
|
|
2,981
|
|
|
1,198
|
|
|
264,077
|
|
|
268,256
|
|
||||||||
Consumer and other
|
—
|
|
|
—
|
|
|
1,110
|
|
|
1,110
|
|
|
—
|
|
|
—
|
|
|
108,868
|
|
|
108,868
|
|
||||||||
Unallocated
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total Non-Real Estate
|
111
|
|
|
—
|
|
|
3,003
|
|
|
3,114
|
|
|
7,011
|
|
|
1,198
|
|
|
395,625
|
|
|
403,834
|
|
||||||||
Total
|
$
|
2,024
|
|
|
$
|
—
|
|
|
$
|
8,905
|
|
|
$
|
10,929
|
|
|
$
|
20,732
|
|
|
$
|
10,420
|
|
|
$
|
1,497,814
|
|
|
$
|
1,528,966
|
|
Unearned Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,476
|
)
|
||||||||||
Total Loans Net of Unearned Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,525,490
|
|
|
As of December 31, 2018
|
||||||||||||||||||||||||||||||
(in thousands)
|
Allowance
Individually
Evaluated
for Impairment
|
|
Allowance Individually Evaluated for Purchased Credit-Impairment
|
|
Allowance
Collectively
Evaluated
for Impairment
|
|
Total Allowance
for Credit Losses
|
|
Loans
Individually
Evaluated
for Impairment
|
|
Loans Individually Evaluated for Purchased Credit-Impairment
|
|
Loans
Collectively
Evaluated
for Impairment
|
|
Total Loans
before
Unearned Income
|
||||||||||||||||
Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Construction & land development
|
$
|
38
|
|
|
$
|
—
|
|
|
$
|
543
|
|
|
$
|
581
|
|
|
$
|
304
|
|
|
$
|
—
|
|
|
$
|
124,340
|
|
|
$
|
124,644
|
|
Farmland
|
—
|
|
|
—
|
|
|
41
|
|
|
41
|
|
|
552
|
|
|
1
|
|
|
17,848
|
|
|
18,401
|
|
||||||||
1- 4 family
|
—
|
|
|
—
|
|
|
911
|
|
|
911
|
|
|
631
|
|
|
48
|
|
|
172,081
|
|
|
172,760
|
|
||||||||
Multifamily
|
—
|
|
|
—
|
|
|
1,318
|
|
|
1,318
|
|
|
—
|
|
|
—
|
|
|
42,918
|
|
|
42,918
|
|
||||||||
Non-farm non-residential
|
1,152
|
|
|
—
|
|
|
3,619
|
|
|
4,771
|
|
|
4,881
|
|
|
2,301
|
|
|
579,081
|
|
|
586,263
|
|
||||||||
Total Real Estate
|
1,190
|
|
|
—
|
|
|
6,432
|
|
|
7,622
|
|
|
6,368
|
|
|
2,350
|
|
|
936,268
|
|
|
944,986
|
|
||||||||
Non-Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agricultural
|
—
|
|
|
—
|
|
|
339
|
|
|
339
|
|
|
2,983
|
|
|
—
|
|
|
20,125
|
|
|
23,108
|
|
||||||||
Commercial and industrial
|
110
|
|
|
—
|
|
|
1,799
|
|
|
1,909
|
|
|
1,088
|
|
|
909
|
|
|
198,880
|
|
|
200,877
|
|
||||||||
Consumer and other
|
—
|
|
|
—
|
|
|
891
|
|
|
891
|
|
|
—
|
|
|
—
|
|
|
59,443
|
|
|
59,443
|
|
||||||||
Unallocated
|
—
|
|
|
—
|
|
|
15
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total Non-Real Estate
|
110
|
|
|
—
|
|
|
3,044
|
|
|
3,154
|
|
|
4,071
|
|
|
909
|
|
|
278,448
|
|
|
283,428
|
|
||||||||
Total
|
$
|
1,300
|
|
|
$
|
—
|
|
|
$
|
9,476
|
|
|
$
|
10,776
|
|
|
$
|
10,439
|
|
|
$
|
3,259
|
|
|
$
|
1,214,716
|
|
|
$
|
1,228,414
|
|
Unearned Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,146
|
)
|
||||||||||
Total Loans Net of Unearned Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,225,268
|
|
|
As of December 31, 2019
|
||||||||||||||||||||||
(in thousands)
|
Recorded
Investment
|
|
Unpaid
Principal Balance
|
|
Related
Allowance
|
|
Average
Recorded Investment
|
|
Interest Income
Recognized
|
|
Interest Income
Cash Basis
|
||||||||||||
Impaired Loans with no related allowance:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction & land development
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Farmland
|
543
|
|
|
552
|
|
|
—
|
|
|
550
|
|
|
—
|
|
|
—
|
|
||||||
1- 4 family
|
541
|
|
|
541
|
|
|
—
|
|
|
544
|
|
|
27
|
|
|
22
|
|
||||||
Multifamily
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Non-farm non-residential
|
8,307
|
|
|
8,307
|
|
|
—
|
|
|
9,940
|
|
|
673
|
|
|
688
|
|
||||||
Total Real Estate
|
9,391
|
|
|
9,400
|
|
|
—
|
|
|
11,034
|
|
|
700
|
|
|
710
|
|
||||||
Non-Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Agricultural
|
4,030
|
|
|
4,186
|
|
|
—
|
|
|
4,031
|
|
|
12
|
|
|
—
|
|
||||||
Commercial and industrial
|
1,962
|
|
|
1,962
|
|
|
—
|
|
|
1,788
|
|
|
81
|
|
|
67
|
|
||||||
Consumer and other
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||
Total Non-Real Estate
|
5,992
|
|
|
6,148
|
|
|
—
|
|
|
5,819
|
|
|
93
|
|
|
67
|
|
||||||
Total Impaired Loans with no related allowance
|
15,383
|
|
|
15,548
|
|
|
—
|
|
|
16,853
|
|
|
793
|
|
|
777
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Impaired Loans with an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Construction & land development
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Farmland
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
1- 4 family
|
517
|
|
|
517
|
|
|
34
|
|
|
522
|
|
|
—
|
|
|
—
|
|
||||||
Multifamily
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Non-farm non-residential
|
3,813
|
|
|
4,162
|
|
|
1,879
|
|
|
4,134
|
|
|
194
|
|
|
212
|
|
||||||
Total Real Estate
|
4,330
|
|
|
4,679
|
|
|
1,913
|
|
|
4,656
|
|
|
194
|
|
|
212
|
|
||||||
Non-Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Agricultural
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Commercial and industrial
|
1,019
|
|
|
1,019
|
|
|
111
|
|
|
1,039
|
|
|
81
|
|
|
77
|
|
||||||
Consumer and other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total Non-Real Estate
|
1,019
|
|
|
1,019
|
|
|
111
|
|
|
1,039
|
|
|
81
|
|
|
77
|
|
||||||
Total Impaired Loans with an allowance recorded
|
5,349
|
|
|
5,698
|
|
|
2,024
|
|
|
5,695
|
|
|
275
|
|
|
289
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total Impaired Loans
|
$
|
20,732
|
|
|
$
|
21,246
|
|
|
$
|
2,024
|
|
|
$
|
22,548
|
|
|
$
|
1,068
|
|
|
$
|
1,066
|
|
|
As of December 31, 2018
|
||||||||||||||||||||||
(in thousands)
|
Recorded
Investment
|
|
Unpaid
Principal Balance
|
|
Related
Allowance
|
|
Average
Recorded Investment
|
|
Interest Income
Recognized
|
|
Interest Income
Cash Basis
|
||||||||||||
Impaired Loans with no related allowance:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction & land development
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Farmland
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
1- 4 family
|
631
|
|
|
631
|
|
|
—
|
|
|
626
|
|
|
13
|
|
|
—
|
|
||||||
Multifamily
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Non-farm non-residential
|
523
|
|
|
523
|
|
|
—
|
|
|
536
|
|
|
33
|
|
|
34
|
|
||||||
Total Real Estate
|
1,154
|
|
|
1,154
|
|
|
—
|
|
|
1,162
|
|
|
46
|
|
|
34
|
|
||||||
Non-Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Agricultural
|
3,535
|
|
|
3,613
|
|
|
—
|
|
|
3,583
|
|
|
173
|
|
|
272
|
|
||||||
Commercial and industrial
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Consumer and other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total Non-Real Estate
|
3,535
|
|
|
3,613
|
|
|
—
|
|
|
3,583
|
|
|
173
|
|
|
272
|
|
||||||
Total Impaired Loans with no related allowance
|
4,689
|
|
|
4,767
|
|
|
—
|
|
|
4,745
|
|
|
219
|
|
|
306
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Impaired Loans with an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Construction & land development
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Farmland
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
1- 4 family
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Multifamily
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Non-farm non-residential
|
3,070
|
|
|
3,070
|
|
|
1,150
|
|
|
3,104
|
|
|
139
|
|
|
139
|
|
||||||
Total Real Estate
|
3,070
|
|
|
3,070
|
|
|
1,150
|
|
|
3,104
|
|
|
139
|
|
|
139
|
|
||||||
Non-Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Agricultural
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Commercial and industrial
|
1,088
|
|
|
1,088
|
|
|
110
|
|
|
1,115
|
|
|
55
|
|
|
64
|
|
||||||
Consumer and other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total Non-Real Estate
|
1,088
|
|
|
1,088
|
|
|
110
|
|
|
1,115
|
|
|
55
|
|
|
64
|
|
||||||
Total Impaired Loans with an allowance recorded
|
4,158
|
|
|
4,158
|
|
|
1,260
|
|
|
4,219
|
|
|
194
|
|
|
203
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total Impaired Loans
|
$
|
8,847
|
|
|
$
|
8,925
|
|
|
$
|
1,260
|
|
|
$
|
8,964
|
|
|
$
|
413
|
|
|
$
|
509
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||||||||||
|
Accruing Loans
|
|
|
|
|
|
Accruing Loans
|
|
|
|
|
||||||||||||||||||||
(in thousands)
|
Current
|
|
30-89 Days Past Due
|
|
Nonaccrual
|
|
Total TDRs
|
|
Current
|
|
30-89 Days Past Due
|
|
Nonaccrual
|
|
Total TDRs
|
||||||||||||||||
Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Construction & land development
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
304
|
|
|
$
|
304
|
|
Farmland
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
1- 4 family
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Multifamily
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Non-farm non-residential
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,288
|
|
|
—
|
|
|
—
|
|
|
1,288
|
|
||||||||
Total Real Estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,288
|
|
|
—
|
|
|
304
|
|
|
1,592
|
|
||||||||
Non-Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Agricultural
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Commercial and industrial
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Consumer and other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total Non-Real Estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,288
|
|
|
$
|
—
|
|
|
$
|
304
|
|
|
$
|
1,592
|
|
|
Trouble Debt Restructured Loans Activity
Twelve Months Ended December 31, 2019
|
||||||||||||||||||||||||||||||||||
(in thousands)
|
Beginning balance (December 31, 2018)
|
|
New TDRs
|
|
Charge-offs
post-modification
|
|
Transferred
to ORE
|
|
Paydowns
|
|
Construction to
permanent financing
|
|
Restructured
to market terms
|
|
Other adjustments
|
|
Ending balance (December 31, 2019)
|
||||||||||||||||||
Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Construction & land development
|
$
|
304
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(304
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Farmland
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
1- 4 family
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Multifamily
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Non-farm non-residential
|
1,288
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,288
|
)
|
|
—
|
|
|
—
|
|
|||||||||
Total Real Estate
|
1,592
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,592
|
)
|
|
—
|
|
|
—
|
|
|||||||||
Non-Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Agricultural
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Commercial and industrial
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Consumer and other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Total Non-Real Estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Total Impaired Loans with no related allowance
|
$
|
1,592
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1,592
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
(in thousands)
|
December 31, 2019
|
|
December 31, 2018
|
||||
Land
|
$
|
15,180
|
|
|
$
|
12,875
|
|
Bank premises
|
40,536
|
|
|
33,457
|
|
||
Furniture and equipment
|
27,255
|
|
|
25,453
|
|
||
Construction in progress
|
9,534
|
|
|
2,046
|
|
||
Acquired value
|
92,505
|
|
|
73,831
|
|
||
Less: accumulated depreciation
|
36,041
|
|
|
34,136
|
|
||
Net book value
|
$
|
56,464
|
|
|
$
|
39,695
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
(in thousands)
|
Gross
Carrying Amount
|
|
Accumulated
Amortization
|
|
Net
Carrying Amount
|
|
Gross
Carrying Amount
|
|
Accumulated
Amortization
|
|
Net
Carrying Amount
|
||||||||||||
Core deposit intangibles
|
$
|
16,266
|
|
|
$
|
9,739
|
|
|
$
|
6,527
|
|
|
$
|
12,053
|
|
|
$
|
9,349
|
|
|
$
|
2,704
|
|
Loan servicing assets
|
1,558
|
|
|
918
|
|
|
640
|
|
|
1,441
|
|
|
617
|
|
|
824
|
|
||||||
Total
|
$
|
17,824
|
|
|
$
|
10,657
|
|
|
$
|
7,167
|
|
|
$
|
13,494
|
|
|
$
|
9,966
|
|
|
$
|
3,528
|
|
For the Years Ended
|
Estimated Amortization Expense
(in thousands)
|
||
December 31, 2020
|
$
|
712
|
|
December 31, 2021
|
$
|
644
|
|
December 31, 2022
|
$
|
576
|
|
December 31, 2023
|
$
|
576
|
|
December 31, 2024
|
$
|
576
|
|
(in thousands)
|
December 31, 2019
|
|
December 31, 2018
|
||||
Real Estate Owned Acquired by Foreclosure:
|
|
|
|
||||
Residential
|
$
|
559
|
|
|
$
|
120
|
|
Construction & land development
|
669
|
|
|
241
|
|
||
Non-farm non-residential
|
3,651
|
|
|
777
|
|
||
Total Other Real Estate Owned and Foreclosed Property
|
$
|
4,879
|
|
|
$
|
1,138
|
|
(in thousands)
|
December 31, 2019
|
||
2020
|
$
|
344,758
|
|
2021
|
90,279
|
|
|
2022
|
77,623
|
|
|
2023
|
101,672
|
|
|
2024 and thereafter
|
141,695
|
|
|
Total
|
$
|
756,027
|
|
(in thousands)
|
December 31, 2019
|
|
December 31, 2018
|
||||
Federal Home Loan Bank advances
|
$
|
13,079
|
|
|
$
|
—
|
|
Repurchase agreements
|
6,840
|
|
|
|
|||
Line of credit
|
—
|
|
|
—
|
|
||
Total short-term borrowings
|
$
|
19,919
|
|
|
$
|
—
|
|
|
December 31,
|
||||||||||
(in thousands except for %)
|
2019
|
|
2018
|
|
2017
|
||||||
Outstanding at year end
|
$
|
19,919
|
|
|
$
|
—
|
|
|
$
|
15,500
|
|
Maximum month-end outstanding
|
$
|
19,919
|
|
|
$
|
37,000
|
|
|
$
|
28,000
|
|
Average daily outstanding
|
$
|
3,320
|
|
|
$
|
7,119
|
|
|
$
|
5,833
|
|
Weighted average rate during the year
|
2.00
|
%
|
|
2.21
|
%
|
|
1.06
|
%
|
|||
Weighted average rate at year end
|
2.00
|
%
|
|
—
|
%
|
|
1.51
|
%
|
(in thousands)
|
Senior
Long-term Debt
|
|
Junior
Subordinated Debentures
|
||||
2020
|
$
|
19,349
|
|
|
$
|
—
|
|
2021
|
3,250
|
|
|
—
|
|
||
2022
|
3,250
|
|
|
—
|
|
||
2023
|
3,250
|
|
|
—
|
|
||
2024
|
19,500
|
|
|
—
|
|
||
2024 and thereafter
|
—
|
|
|
15,000
|
|
||
Subtotal
|
$
|
48,599
|
|
|
$
|
15,000
|
|
Debt issuance costs
|
(41
|
)
|
|
(263
|
)
|
||
Total
|
$
|
48,558
|
|
|
$
|
14,737
|
|
|
Actual
|
|
Minimum Capital Requirements
|
|
Minimum to be Well Capitalized
Under Action Provisions
|
|||||||||||||||
(in thousands except for %)
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total Risk-based Capital:
|
$
|
213,962
|
|
|
12.61
|
%
|
|
$
|
135,697
|
|
|
8.00
|
%
|
|
$
|
169,621
|
|
|
10.00
|
%
|
Tier 1 Capital:
|
$
|
203,034
|
|
|
11.96
|
%
|
|
$
|
101,773
|
|
|
6.00
|
%
|
|
$
|
135,697
|
|
|
8.00
|
%
|
Tier 1 Leverage Capital:
|
$
|
203,033
|
|
|
10.44
|
%
|
|
$
|
77,771
|
|
|
4.00
|
%
|
|
$
|
97,214
|
|
|
5.00
|
%
|
Common Equity Tier One Capital:
|
$
|
203,034
|
|
|
11.96
|
%
|
|
$
|
76,329
|
|
|
4.50
|
%
|
|
$
|
110,254
|
|
|
6.50
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total Risk-based Capital:
|
$
|
181,618
|
|
|
12.97
|
%
|
|
$
|
112,055
|
|
|
8.00
|
%
|
|
$
|
140,069
|
|
|
10.00
|
%
|
Tier 1 Capital:
|
$
|
170,842
|
|
|
12.20
|
%
|
|
$
|
84,041
|
|
|
6.00
|
%
|
|
$
|
112,055
|
|
|
8.00
|
%
|
Tier 1 Leverage Capital:
|
$
|
170,842
|
|
|
9.79
|
%
|
|
$
|
69,822
|
|
|
4.00
|
%
|
|
$
|
87,277
|
|
|
5.00
|
%
|
Common Equity Tier One Capital:
|
$
|
170,842
|
|
|
12.20
|
%
|
|
$
|
63,031
|
|
|
4.50
|
%
|
|
$
|
91,045
|
|
|
6.50
|
%
|
|
December 31,
|
||||||
(in thousands)
|
2019
|
|
2018
|
||||
Balance, beginning of year
|
$
|
63,907
|
|
|
$
|
82,918
|
|
Net (Decrease) Increase
|
(2,087
|
)
|
|
(19,011
|
)
|
||
Balance, end of year
|
$
|
61,820
|
|
|
$
|
63,907
|
|
|
December 31,
|
||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Other noninterest expense:
|
|
|
|
|
|
||||||
Legal and professional fees
|
$
|
2,648
|
|
|
$
|
2,362
|
|
|
$
|
3,049
|
|
Data processing
|
1,972
|
|
|
1,692
|
|
|
1,608
|
|
|||
ATM Fees
|
1,217
|
|
|
1,214
|
|
|
1,161
|
|
|||
Marketing and public relations
|
1,456
|
|
|
1,329
|
|
|
1,205
|
|
|||
Taxes - sales, capital and franchise
|
1,094
|
|
|
1,066
|
|
|
970
|
|
|||
Operating supplies
|
674
|
|
|
562
|
|
|
496
|
|
|||
Software expense and amortization
|
1,308
|
|
|
1,119
|
|
|
923
|
|
|||
Travel and lodging
|
908
|
|
|
978
|
|
|
910
|
|
|||
Telephone
|
193
|
|
|
208
|
|
|
167
|
|
|||
Amortization of core deposits
|
390
|
|
|
545
|
|
|
432
|
|
|||
Donations
|
603
|
|
|
380
|
|
|
322
|
|
|||
Net costs from other real estate and repossessions
|
422
|
|
|
186
|
|
|
306
|
|
|||
Regulatory assessment
|
683
|
|
|
941
|
|
|
726
|
|
|||
Other
|
2,536
|
|
|
2,204
|
|
|
1,628
|
|
|||
Total other noninterest expense
|
$
|
16,104
|
|
|
$
|
14,786
|
|
|
$
|
13,903
|
|
|
December 31,
|
||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Current
|
$
|
3,770
|
|
|
$
|
3,929
|
|
|
$
|
4,638
|
|
Deferred
|
(114
|
)
|
|
(467
|
)
|
|
2,761
|
|
|||
Total
|
$
|
3,656
|
|
|
$
|
3,462
|
|
|
$
|
7,399
|
|
|
December 31,
|
||||||||||
(in thousands except for %)
|
2019
|
|
2018
|
|
2017
|
||||||
Statutory tax rate
|
21.0
|
%
|
|
21.0
|
%
|
|
35.0
|
%
|
|||
Federal income taxes at statutory rate
|
$
|
3,758
|
|
|
$
|
3,712
|
|
|
$
|
6,703
|
|
Tax exempt municipal income
|
(140
|
)
|
|
(166
|
)
|
|
(254
|
)
|
|||
Other (1)
|
38
|
|
|
(84
|
)
|
|
950
|
|
|||
Total
|
$
|
3,656
|
|
|
$
|
3,462
|
|
|
$
|
7,399
|
|
|
December 31,
|
||||||
(in thousands)
|
2019
|
|
2018
|
||||
Deferred tax assets:
|
|
|
|
||||
Allowance for loan losses
|
$
|
1,720
|
|
|
$
|
2,159
|
|
Other real estate owned
|
257
|
|
|
28
|
|
||
Unrealized losses on available for sale securities
|
—
|
|
|
1,897
|
|
||
Net operating loss
|
1,282
|
|
|
1,374
|
|
||
Other
|
508
|
|
|
456
|
|
||
Gross deferred tax assets
|
3,767
|
|
|
5,914
|
|
||
|
|
|
|
||||
Deferred tax liabilities:
|
|
|
|
|
|
||
Depreciation and amortization
|
(2,010
|
)
|
|
(1,537
|
)
|
||
Core deposit intangibles
|
(1,359
|
)
|
|
(552
|
)
|
||
Unrealized gains on available for sale securities
|
(578
|
)
|
|
—
|
|
||
Discount on purchased loans
|
(267
|
)
|
|
—
|
|
||
Other
|
(670
|
)
|
|
(589
|
)
|
||
Gross deferred tax liabilities
|
(4,884
|
)
|
|
(2,678
|
)
|
||
|
|
|
|
||||
Net deferred tax (liabilities) assets
|
$
|
(1,117
|
)
|
|
$
|
3,236
|
|
Contract Amount
|
December 31, 2019
|
|
December 31, 2018
|
||||
(in thousands)
|
|
|
|
||||
Commitments to Extend Credit
|
$
|
117,826
|
|
|
$
|
108,348
|
|
Unfunded Commitments under lines of credit
|
$
|
148,127
|
|
|
$
|
122,212
|
|
Commercial and Standby letters of credit
|
$
|
11,258
|
|
|
$
|
6,912
|
|
(in thousands)
|
December 31, 2019
|
|
December 31, 2018
|
||||
Available for Sale Securities Fair Value Measurements Using:
|
|
|
|
||||
Level 1: Quoted Prices in Active Markets For Identical Assets
|
$
|
497
|
|
|
$
|
483
|
|
Level 2: Significant Other Observable Inputs
|
330,539
|
|
|
291,733
|
|
||
Level 3: Significant Unobservable Inputs
|
9,398
|
|
|
4,761
|
|
||
Securities available for sale measured at fair value
|
$
|
340,434
|
|
|
$
|
296,977
|
|
|
Level 3 Changes
|
||||||
(in thousands)
|
December 31, 2019
|
|
December 31, 2018
|
||||
Balance, beginning of year
|
$
|
4,761
|
|
|
$
|
6,533
|
|
Total gains or losses (realized/unrealized):
|
|
|
|
|
|
||
Included in earnings
|
—
|
|
|
(15
|
)
|
||
Included in other comprehensive income
|
146
|
|
|
(79
|
)
|
||
Purchases, sales, issuances and settlements, net
|
4,491
|
|
|
(1,886
|
)
|
||
Transfers in and/or out of Level 3
|
—
|
|
|
208
|
|
||
Balance as of end of year
|
$
|
9,398
|
|
|
$
|
4,761
|
|
(in thousands)
|
At December 31, 2019
|
|
At December 31, 2018
|
||||
Fair Value Measurements Using: Impaired Loans
|
|
|
|
||||
Level 1: Quoted Prices in Active Markets For Identical Assets
|
$
|
—
|
|
|
$
|
—
|
|
Level 2: Significant Other Observable Inputs
|
—
|
|
|
—
|
|
||
Level 3: Significant Unobservable Inputs
|
4,046
|
|
|
3,620
|
|
||
Impaired loans measured at fair value
|
$
|
4,046
|
|
|
$
|
3,620
|
|
|
|
|
|
||||
Fair Value Measurements Using: Other Real Estate Owned
|
|
|
|
|
|
||
Level 1: Quoted Prices in Active Markets For Identical Assets
|
$
|
—
|
|
|
$
|
—
|
|
Level 2: Significant Other Observable Inputs
|
4,158
|
|
|
1,012
|
|
||
Level 3: Significant Unobservable Inputs
|
721
|
|
|
126
|
|
||
Other real estate owned measured at fair value
|
$
|
4,879
|
|
|
$
|
1,138
|
|
|
December 31,
|
||||||||||||||
|
2019
|
|
2018
|
||||||||||||
(in thousands)
|
Carrying Value
|
|
Estimated Fair Value
|
|
Carrying Value
|
|
Estimated Fair Value
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
67,425
|
|
|
$
|
67,425
|
|
|
$
|
127,965
|
|
|
$
|
127,965
|
|
Securities, available for sale
|
$
|
340,434
|
|
|
$
|
340,434
|
|
|
$
|
296,977
|
|
|
$
|
296,977
|
|
Securities, held to maturity
|
$
|
86,579
|
|
|
$
|
86,817
|
|
|
$
|
108,326
|
|
|
$
|
104,840
|
|
Federal Home Loan Bank stock
|
$
|
3,308
|
|
|
$
|
3,308
|
|
|
$
|
2,393
|
|
|
$
|
2,393
|
|
Loans held for sale
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
344
|
|
|
$
|
379
|
|
Loans, net
|
$
|
1,514,561
|
|
|
$
|
1,515,277
|
|
|
$
|
1,214,492
|
|
|
$
|
1,193,886
|
|
Accrued interest receivable
|
$
|
8,412
|
|
|
$
|
8,412
|
|
|
$
|
6,716
|
|
|
$
|
6,716
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deposits
|
$
|
1,853,013
|
|
|
$
|
1,863,179
|
|
|
$
|
1,629,622
|
|
|
$
|
1,625,827
|
|
Borrowings
|
$
|
72,010
|
|
|
$
|
71,969
|
|
|
$
|
19,838
|
|
|
$
|
19,853
|
|
Junior subordinated debentures
|
$
|
14,737
|
|
|
$
|
14,762
|
|
|
$
|
14,700
|
|
|
$
|
14,537
|
|
Accrued interest payable
|
$
|
6,047
|
|
|
$
|
6,047
|
|
|
$
|
3,952
|
|
|
$
|
3,952
|
|
|
December 31,
|
||||||
(in thousands)
|
2019
|
|
2018
|
||||
Assets
|
|
|
|
||||
Cash
|
$
|
633
|
|
|
$
|
8,069
|
|
Investment in bank subsidiary
|
224,677
|
|
|
169,880
|
|
||
Other assets
|
4,427
|
|
|
4,724
|
|
||
Total Assets
|
$
|
229,737
|
|
|
$
|
182,673
|
|
|
|
|
|
||||
Liabilities and Shareholders' Equity
|
|
|
|
|
|
||
Senior long-term debt
|
48,558
|
|
|
19,838
|
|
||
Junior subordinated debentures
|
14,738
|
|
|
14,700
|
|
||
Other liabilities
|
406
|
|
|
851
|
|
||
Total Liabilities
|
63,702
|
|
|
35,389
|
|
||
Shareholders' Equity
|
166,035
|
|
|
147,284
|
|
||
Total Liabilities and Shareholders' Equity
|
$
|
229,737
|
|
|
$
|
182,673
|
|
|
December 31,
|
||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Operating Income
|
|
|
|
|
|
||||||
Dividends received from bank subsidiary
|
$
|
13,982
|
|
|
$
|
11,788
|
|
|
$
|
10,622
|
|
Net gains on sale of equity securities
|
196
|
|
|
—
|
|
|
54
|
|
|||
Other income
|
424
|
|
|
289
|
|
|
171
|
|
|||
Total operating income
|
14,602
|
|
|
12,077
|
|
|
10,847
|
|
|||
|
|
|
|
|
|
||||||
Operating Expenses
|
|
|
|
|
|
|
|
|
|||
Interest expense
|
1,795
|
|
|
1,675
|
|
|
1,518
|
|
|||
Salaries & Benefits
|
208
|
|
|
133
|
|
|
495
|
|
|||
Other expenses
|
953
|
|
|
916
|
|
|
1,147
|
|
|||
Total operating expenses
|
2,956
|
|
|
2,724
|
|
|
3,160
|
|
|||
|
|
|
|
|
|
||||||
Income before income tax benefit and increase in equity in undistributed earnings of subsidiary
|
11,646
|
|
|
9,353
|
|
|
7,687
|
|
|||
Income tax benefit
|
494
|
|
|
540
|
|
|
834
|
|
|||
Income before increase in equity in undistributed earnings of subsidiary
|
12,140
|
|
|
9,893
|
|
|
8,521
|
|
|||
Increase in equity in undistributed earnings of subsidiary
|
2,101
|
|
|
4,320
|
|
|
3,230
|
|
|||
Net Income
|
$
|
14,241
|
|
|
$
|
14,213
|
|
|
$
|
11,751
|
|
|
December 31,
|
||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
14,241
|
|
|
$
|
14,213
|
|
|
$
|
11,751
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|||
Increase in equity in undistributed earnings of subsidiary
|
(2,101
|
)
|
|
(4,320
|
)
|
|
(3,230
|
)
|
|||
Depreciation and amortization
|
80
|
|
|
43
|
|
|
43
|
|
|||
Gain on sale of securities
|
(196
|
)
|
|
—
|
|
|
(54
|
)
|
|||
Net change in other liabilities
|
(444
|
)
|
|
136
|
|
|
187
|
|
|||
Net change in other assets
|
(601
|
)
|
|
1,360
|
|
|
(1,306
|
)
|
|||
Net cash provided by operating activities
|
10,979
|
|
|
11,432
|
|
|
7,391
|
|
|||
|
|
|
|
|
|
||||||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|||
Proceeds from maturities, calls and sales of AFS securities
|
—
|
|
|
—
|
|
|
134
|
|
|||
Proceeds from sales of equity securities
|
1,196
|
|
|
—
|
|
|
—
|
|
|||
Funds invested in bank subsidiary
|
—
|
|
|
—
|
|
|
(3,750
|
)
|
|||
Purchases of premises and equipment
|
(136
|
)
|
|
—
|
|
|
—
|
|
|||
Cash paid in acquisition
|
(43,383
|
)
|
|
—
|
|
|
(10,108
|
)
|
|||
Net cash used in investing activities
|
(42,323
|
)
|
|
—
|
|
|
(13,724
|
)
|
|||
|
|
|
|
|
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|||
Proceeds from long-term debt, net of costs
|
32,465
|
|
|
—
|
|
|
3,750
|
|
|||
Repayment of long-term debt
|
(3,754
|
)
|
|
(2,941
|
)
|
|
(3,081
|
)
|
|||
Proceeds from junior subordinated debentures, net of costs
|
—
|
|
|
—
|
|
|
—
|
|
|||
Common stock issued in private placement
|
1,000
|
|
|
—
|
|
|
—
|
|
|||
Dividends paid
|
(5,803
|
)
|
|
(5,636
|
)
|
|
(5,210
|
)
|
|||
Net cash provided by (used in) financing activities
|
23,908
|
|
|
(8,577
|
)
|
|
(4,541
|
)
|
|||
|
|
|
|
|
|
||||||
Net (decrease) increase in cash and cash equivalents
|
(7,436
|
)
|
|
2,855
|
|
|
(10,874
|
)
|
|||
Cash and cash equivalents at the beginning of the period
|
8,069
|
|
|
5,214
|
|
|
16,088
|
|
|||
Cash and cash equivalents at the end of the period
|
$
|
633
|
|
|
$
|
8,069
|
|
|
$
|
5,214
|
|
(a) 1
|
Consolidated Financial Statements
|
|
|
|
|
|
Item
|
Page
|
|
First Guaranty Bancshares, Inc. and Subsidiary
|
|
|
Report of Independent Registered Public Accounting Firm
|
|
|
Consolidated Balance Sheets - December 31, 2019 and 2018
|
|
|
Consolidated Statements of Income – Years Ended December 31, 2019, 2018 and 2017
|
|
|
Consolidated Statements of Comprehensive Income – Years Ended December 31, 2019, 2018 and 2017
|
|
|
Consolidated Statements of Changes in Shareholders' Equity – Years Ended December 31, 2019, 2018 and 2017
|
|
|
Consolidated Statements of Cash Flows - Years Ended December 31, 2019, 2018 and 2017
|
|
|
Notes to Consolidated Financial Statements
|
|
|
|
|
2
|
Consolidated Financial Statement Schedules
|
|
|
All schedules to the consolidated financial statements of First Guaranty Bancshares, Inc. and its subsidiary have been omitted because they are not required under the related instructions or are inapplicable, or because the required information has been provided in the consolidated financial statements or the notes thereto.
|
|
|
|
|
3
|
Exhibits
|
|
|
The exhibits required by Regulation S-K are set forth in the following list and are filed either by incorporation by reference from previous filings with the Securities and Exchange Commission or by attachment to this Annual Report on Form 10-K as indicated below.
|
|
(1)
|
Incorporated by reference to Exhibit 3.1 of the Current Report on Form 8-K12G3 filed by First Guaranty Bancshares, Inc. with the Securities and Exchange Commission on August 2, 2007.
|
(2)
|
Incorporated by reference to Exhibit 3.1 of the Current Report on Form 8-K filed by First Guaranty Bancshares, Inc. with the Securities and Exchange Commission on September 23, 2011.
|
(3)
|
Incorporated by reference to Exhibit 3.2 of the Current Report on Form 8-K12G3 filed by First Guaranty Bancshares, Inc. with the Securities and Exchange Commission on August 2, 2007.
|
(4)
|
Incorporated by reference to Exhibit 3.3 of the Current Report on Form 8-K12G3 filed by First Guaranty Bancshares, Inc. with the Securities and Exchange Commission on August 2, 2007.
|
(5)
|
Incorporated by reference to Exhibit 4 of the Current Report on Form 8-K12G3 filed by First Guaranty Bancshares, Inc. with the Securities and Exchange Commission on August 2, 2007.
|
(6)
|
Incorporated by reference to Exhibit 4.1 of the Current Report on Form 8-K filed by First Guaranty Bancshares, Inc. with the Securities and Exchange Commission on December 23, 2015.
|
(7)
|
Incorporated by reference to Exhibit 10.1 of the Current Report on Form 8-K filed by First Guaranty Bancshares, Inc. with the Securities and Exchange Commission on December 23, 2015.
|
(8)
|
Incorporated by reference to Exhibit 10.2 of the Current Report on Form 8-K filed by First Guaranty Bancshares, Inc. with the Securities and Exchange Commission on December 23, 2015.
|
(9)
|
Incorporated by reference to Exhibit 10.3 of the Current Report on Form 8-K filed by First Guaranty Bancshares, Inc. with the Securities and Exchange Commission on December 23, 2015.
|
(10)
|
Incorporated by reference to Exhibit 10.4 of the Current Report on Form 8-K filed by First Guaranty Bancshares, Inc. with the Securities and Exchange Commission on December 23, 2015.
|
(11)
|
Incorporated by reference to Exhibit 21 of the Registration statement on Form S-1 filed by First Guaranty Bancshares, Inc. with the Securities and Exchange Commission on October 24, 2014.
|
(12)
|
Incorporated by reference to Exhibit 10.1 of the Current Report on Form 8-K filed by First Guaranty Bancshares, Inc. with the Securities and Exchange Commission on November 20, 2017.
|
(13)
|
Incorporated by reference to Exhibit 10.1 of the Current Report on Form 8-K filed by First Guaranty Bancshares, Inc. with the Securities and Exchange Commission on November 12, 2019.
|
(14)
|
Incorporated by reference to Exhibit 10.2 of the Current Report on Form 8-K filed by First Guaranty Bancshares, Inc. with the Securities and Exchange Commission on November 12, 2019.
|
(15)
|
Incorporated by reference to Exhibit 10.3 of the Current Report on Form 8-K filed by First Guaranty Bancshares, Inc. with the Securities and Exchange Commission on November 12, 2019.
|
/s/ Alton B. Lewis
|
|
President,
Chief Executive Officer and Director
(Principal Executive Officer)
|
March 16, 2020
|
Alton B. Lewis
|
|
|
|
|
|
|
|
/s/ Eric J. Dosch
|
|
Chief Financial Officer,
Secretary and Treasurer
(Principal Financial and Accounting Officer)
|
March 16, 2020
|
Eric J. Dosch
|
|
|
|
|
|
|
|
/s/ Marshall T. Reynolds
|
|
Chairman of the Board
|
March 16, 2020
|
Marshall T. Reynolds
|
|
|
|
|
|
|
|
/s/ William K. Hood
|
|
Director
|
March 16, 2020
|
William K. Hood
|
|
|
|
|
|
|
|
/s/ Jack Rossi
|
|
Director
|
March 16, 2020
|
Jack Rossi
|
|
|
|
|
|
|
|
/s/ Edgar R. Smith, III
|
|
Director
|
March 16, 2020
|
Edgar R. Smith, III
|
|
|
|
•
|
Gifts of reasonable value based on a family or personal relationship where that relationship is the obvious motivating factor for the gift;
|
•
|
Discounts or rebates on merchandise or services that do not exceed those available to other customers of the merchant;
|
•
|
Awards for recognition of service or accomplishments from civic, charitable, educational, or religious organizations.
|
•
|
Engaging in any activity that competes with the Company.
|
•
|
Employment which involves the use of our equipment, supplies, or facilities.
|
•
|
Employment which involves the preparation, audit or certification of financial statements, tax returns, or other documents upon which we may rely for lending or other decisions. Senior Managers and employees who prepare income tax returns for individuals or entities other than themselves must obtain confirmation that the customer does not intend to use the officer's or employee's work product as part of any transaction with the Company.
|
•
|
Employment which involves giving investment, legal or other advice, or exercising judgment which is based upon information, reports, or analyses that are accessible from the Company.
|
•
|
Employment which may reflect adversely on the officer, employee, or the Company.
|
•
|
Employment under circumstances which may suggest the sponsorship or support of the Company on behalf of the outside employer or an outside organization.
|
•
|
Employment as an insurance or securities broker, agent or representative.
|
•
|
Employment as a real estate salesman, broker, agent, or contractor, (except with the prior written approval of Chief Executive Officer).
|
•
|
We do not sell or rent customers’ personal information.
|
•
|
We do not release customer information to third parties, except upon a customer’s authorization or when required by law. Employees may not discuss the business affairs of any customer with any other person, except on a strict need-to-know basis
|
•
|
Third-Party service providers and vendors with access to customer information are required to keep customer information confidential and use it only to provide services to or for the Company.
|
1.
|
Any employee or officer who becomes aware of a past or present Code Violation is required to promptly report the facts and circumstances to his or her immediate supervisor, and simultaneously to the Human Resource Officer. Once the supervisor has been advised of a Code Violation, the supervisor is required to promptly confirm the matter with the Human Resource Officer. Directors should contact the Chief Executive Officer, the Corporate Secretary, or the Chair of the Audit Committee. The Audit Committee of the Board of Directors in particular will be notified promptly about any Code Violation regarding accounting or auditing matters as well as the full board at its next regular meeting unless, in the judgment of the CEO, the matter needs to be addressed sooner.
|
2.
|
An investigation into the reported Code Violation will be conducted promptly by the Human Resource Officer in consultation with the Chief Executive Officer or Audit Committee, as appropriate. Facts and circumstances in the report will be reported so as to protect, to the greatest extent possible, the anonymity of the reporting person.
|
3.
|
If the Human Resource Officer and the Chief Executive Officer are not able to promptly resolve the Code Violation to their mutual satisfaction, the Human Resource Officer and the Chief Executive Officer shall promptly confer with the Audit Committee of the Board of Directors to resolve the Code Violation consistent with this Code and applicable laws and regulations.
|
4.
|
Illegal or criminal conduct will also be reported to our primary regulators and any law enforcement agencies with jurisdiction consistent with confidentiality and the protection of applicable privacy privileges. We will cooperate fully with such authorities in their prosecution of parties responsible for impermissible, illegal, or criminal conduct.
|
5.
|
In the event of legal proceedings, the reporting person(s) may be deposed, interviewed, and asked to testify, just as any other person having knowledge of the relevant facts and circumstances would be. We will seek to protect the identity of the reporting person to the greatest extent practicable.
|
1.
|
The Audit Committee of the Board - if the waiver sought relates to any executive officer (title of Senior Vice President or higher), and any Senior Financial Officer (CEO, CFO and all Accounting, Audit and/or Compliance officers, with the title of Vice President or higher).
|
2.
|
The Human Resource Officer - if the waiver sought relates to any other employee. The determination shall be made by the employee’s immediate supervisor, in consultation with the Human Resource Officer unless such request is quantitatively or qualitatively material or outside the ordinary course of business, in which case such determination shall be made by the Audit Committee.
|
3.
|
The decision with respect to the waiver request shall be documented and forwarded to the Human Resource Officer for filing and retention, with a copy to the Audit Committee of the Board of Directors.
|
4.
|
All waivers of the Code shall be reported promptly by the Audit Committee or Human Resource Officer, as applicable, to the Board of Directors.
|
5.
|
Waivers shall be publicly disclosed on a timely basis as determined by the Board of Directors in consultation with the Compliance Officer and/or legal counsel.
|
Sign here: _________________________________________
|
|
|
|
|
|
Print:
|
|
|
|
|
|
Name _____________________________________________
|
Title _______________________
|
Date _____/_____/_____
|
A.
|
INTRODUCTION
|
•
|
Chief Executive Officer
|
•
|
Chief Financial Officer
|
•
|
All Executive Officers
|
B.
|
STANDARDS OF CONDUCT
|
•
|
Honest and Ethical Conduct
|
•
|
Full Disclosure
|
•
|
Compliance with Laws, Rules and Regulations
|
•
|
Reporting of Code Violations
|
•
|
Accountability
|
C.
|
AMENDMENTS TO OR WAIVERS OF THIS CODE
|
Sign here: _________________________________________
|
|
|
|
|
|
Print:
|
|
|
|
|
|
Name _____________________________________________
|
Title _______________________
|
Date _____/_____/_____
|
1.
|
I have reviewed this Annual Report on Form 10-K of First Guaranty Bancshares, Inc.;
|
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 annual 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 officers 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;
|
5.
|
The registrant’s other certifying officers 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.
|
1.
|
I have reviewed this Annual Report on Form 10-K of First Guaranty Bancshares, Inc.;
|
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 annual 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 officers 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;
|
5.
|
The registrant’s other certifying officers 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.
|
1.
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
1.
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|