ý
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934
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Georgia
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20-5728270
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(State of Incorporation)
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(I.R.S. Employer Identification No.)
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3280 Peachtree Road NE, Suite 1600 Atlanta, Georgia
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30305
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(Address of principal executive offices)
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(Zip Code)
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(404) 995-6050
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(Registrant’s telephone number, including area code)
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Not Applicable
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(Former name, former address, and former fiscal year, if changed since last report)
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Large accelerated filer
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¨
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Accelerated filer
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ý
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Non-accelerated filer
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¨
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(Do not check if a smaller reporting company)
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Smaller reporting company
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¨
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Emerging growth company
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ý
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Page
No.
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PART I.
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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PART II.
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Item 1.
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Item 1A.
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Item 2.
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Item 3.
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Item 4.
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Item 5.
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Item 6.
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ITEM 1.
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FINANCIAL STATEMENTS (UNAUDITED)
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June 30,
2017 |
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December 31,
2016 |
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(in thousands, except share data)
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(unaudited)
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ASSETS
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|
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Cash and due from banks
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$
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45,008
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$
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36,790
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Interest-bearing deposits in banks
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36,171
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118,039
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Other short-term investments
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17,459
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10,896
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Cash and cash equivalents
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98,638
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165,725
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Securities available-for-sale
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450,273
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347,705
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Other investments
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26,741
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23,806
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Loans held for sale
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1,744
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35,219
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Loans held for investment
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1,962,091
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1,981,330
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Less: allowance for loan losses
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(21,870
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)
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(20,595
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)
|
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Loans held for investment, net
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1,940,221
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1,960,735
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Branch premises held for sale
|
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—
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2,995
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Premises and equipment, net
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11,997
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11,958
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Bank owned life insurance
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62,901
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62,160
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Goodwill and intangible assets, net
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28,446
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29,567
|
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Other real estate owned
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1,819
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1,872
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Other assets
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79,795
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85,801
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Total assets
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$
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2,702,575
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$
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2,727,543
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LIABILITIES AND SHAREHOLDERS’ EQUITY
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Liabilities:
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Deposits:
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Noninterest-bearing demand
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$
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612,744
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$
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643,471
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Interest-bearing checking
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250,254
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264,062
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Savings
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30,170
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27,932
|
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Money market
|
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882,824
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912,493
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Time
|
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142,915
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157,810
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Brokered deposits
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195,047
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200,223
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Total deposits
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2,113,954
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2,205,991
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Deposits to be assumed in branch sale
|
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—
|
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31,589
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Federal funds purchased and securities sold under agreements to repurchase
|
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15,000
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|
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—
|
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Federal Home Loan Bank borrowings
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180,000
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110,000
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Long-term debt
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49,451
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49,366
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Other liabilities
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24,735
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26,939
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Total liabilities
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2,383,140
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2,423,885
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SHAREHOLDERS’ EQUITY
|
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Preferred Stock, no par value – 10,000,000 shares authorized; no shares issued and outstanding as of June 30, 2017 and December 31, 2016
|
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—
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—
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Common stock, no par value – 100,000,000 shares authorized; 25,654,521 and 25,093,135 shares issued and outstanding as of June 30, 2017, and December 31, 2016, respectively
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297,610
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292,747
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Retained earnings
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24,095
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16,536
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Accumulated other comprehensive (loss) income
|
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(2,270
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)
|
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(5,625
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)
|
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Total shareholders’ equity
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319,435
|
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303,658
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TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
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$
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2,702,575
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$
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2,727,543
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Three Months Ended
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Six Months Ended
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||||||||||||
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June 30,
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June 30,
|
||||||||||||
(in thousands, except per share data)
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2017
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2016
|
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2017
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2016
|
||||||||
INTEREST INCOME
|
|
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Loans, including fees
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$
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21,361
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$
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20,282
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$
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41,355
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$
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39,907
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Investment securities – available-for-sale
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2,355
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1,327
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4,373
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2,928
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|
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Interest and dividends on other interest-earning assets
|
606
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507
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1,055
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780
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Total interest income
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24,322
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22,116
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46,783
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43,615
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INTEREST EXPENSE
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||||||||
Interest on deposits
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2,481
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1,841
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4,528
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3,514
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Interest on Federal Home Loan Bank advances
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452
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147
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754
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191
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Interest on federal funds purchased and securities sold under agreements to repurchase
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76
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87
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112
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154
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Interest on long-term debt
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824
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832
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1,647
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1,642
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Other
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—
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—
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—
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38
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|
||||
Total interest expense
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3,833
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2,907
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7,041
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5,539
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NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES
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20,489
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19,209
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39,742
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38,076
|
|
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Provision for loan losses
|
1,980
|
|
|
777
|
|
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2,614
|
|
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1,145
|
|
||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
|
18,509
|
|
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18,432
|
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37,128
|
|
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36,931
|
|
||||
NONINTEREST INCOME
|
|
|
|
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||||||||
Service charges
|
1,274
|
|
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1,392
|
|
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2,623
|
|
|
2,890
|
|
||||
Gain on sales of securities available-for-sale
|
—
|
|
|
11
|
|
|
—
|
|
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44
|
|
||||
Gain on sales of other assets
|
666
|
|
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31
|
|
|
744
|
|
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79
|
|
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Mortgage income
|
388
|
|
|
447
|
|
|
645
|
|
|
786
|
|
||||
Trust income
|
488
|
|
|
386
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|
895
|
|
|
700
|
|
||||
Derivatives income
|
116
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|
|
98
|
|
|
65
|
|
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163
|
|
||||
Bank owned life insurance
|
384
|
|
|
398
|
|
|
762
|
|
|
791
|
|
||||
SBA lending activities
|
1,171
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|
|
1,204
|
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|
2,398
|
|
|
2,084
|
|
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TriNet lending activities
|
20
|
|
|
761
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40
|
|
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1,144
|
|
||||
Gains on sale of branches
|
302
|
|
|
3,885
|
|
|
302
|
|
|
3,885
|
|
||||
Other noninterest income
|
478
|
|
|
267
|
|
|
670
|
|
|
734
|
|
||||
Total noninterest income
|
5,287
|
|
|
8,880
|
|
|
9,144
|
|
|
13,300
|
|
||||
NONINTEREST EXPENSE
|
|
|
|
|
|
|
|
||||||||
Salaries and employee benefits
|
10,603
|
|
|
10,420
|
|
|
21,668
|
|
|
20,975
|
|
||||
Occupancy
|
1,074
|
|
|
1,274
|
|
|
2,304
|
|
|
2,374
|
|
||||
Equipment and software
|
996
|
|
|
724
|
|
|
1,801
|
|
|
1,410
|
|
||||
Professional services
|
973
|
|
|
760
|
|
|
1,877
|
|
|
1,508
|
|
||||
Postage, printing and supplies
|
78
|
|
|
159
|
|
|
163
|
|
|
328
|
|
||||
Communications and data processing
|
1,069
|
|
|
694
|
|
|
2,056
|
|
|
1,610
|
|
||||
Marketing and business development
|
179
|
|
|
317
|
|
|
449
|
|
|
584
|
|
||||
FDIC premiums
|
132
|
|
|
493
|
|
|
446
|
|
|
891
|
|
||||
Merger and conversion costs
|
304
|
|
|
1,210
|
|
|
304
|
|
|
1,959
|
|
||||
Amortization of intangibles
|
425
|
|
|
668
|
|
|
895
|
|
|
1,430
|
|
||||
Foreclosed property/problem asset expense
|
107
|
|
|
55
|
|
|
110
|
|
|
159
|
|
||||
Other noninterest expense
|
1,683
|
|
|
2,169
|
|
|
3,294
|
|
|
3,981
|
|
||||
Total noninterest expense
|
17,623
|
|
|
18,943
|
|
|
35,367
|
|
|
37,209
|
|
||||
INCOME BEFORE PROVISION FOR INCOME TAXES
|
6,173
|
|
|
8,369
|
|
|
10,905
|
|
|
13,022
|
|
||||
Provision for income taxes
|
1,844
|
|
|
3,222
|
|
|
3,346
|
|
|
4,944
|
|
||||
NET INCOME
|
$
|
4,329
|
|
|
$
|
5,147
|
|
|
$
|
7,559
|
|
|
$
|
8,078
|
|
NET INCOME PER SHARE:
|
|
|
|
|
|
|
|
||||||||
Net income per share – basic
|
$
|
0.17
|
|
|
$
|
0.21
|
|
|
$
|
0.30
|
|
|
$
|
0.33
|
|
Net income per share – diluted
|
$
|
0.17
|
|
|
$
|
0.20
|
|
|
$
|
0.29
|
|
|
$
|
0.32
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
(in thousands)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net income
|
$
|
4,329
|
|
|
$
|
5,147
|
|
|
$
|
7,559
|
|
|
$
|
8,078
|
|
Other comprehensive income
|
|
|
|
|
|
|
|
||||||||
Unrealized gains (losses) on available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
Unrealized holding gains arising during the period, net of tax of $1,951, $1,043, $2,178, and $2,683, respectively
|
3,118
|
|
|
1,660
|
|
|
3,482
|
|
|
4,295
|
|
||||
Reclassification adjustment for gains included in net income net of tax of $0, ($4), $0, and ($17), respectively
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(27
|
)
|
||||
Unrealized gains on available-for-sale securities, net of tax
|
3,118
|
|
|
1,653
|
|
|
3,482
|
|
|
4,268
|
|
||||
Cash flow hedges:
|
|
|
|
|
|
|
|
||||||||
Net unrealized derivative gains (losses) on cash flow hedges, net of tax of $12, $106, ($79), and $470, respectively
|
19
|
|
|
169
|
|
|
(127
|
)
|
|
742
|
|
||||
Changes from cash flow hedges
|
19
|
|
|
169
|
|
|
(127
|
)
|
|
742
|
|
||||
Other comprehensive income, net of tax
|
3,137
|
|
|
1,822
|
|
|
3,355
|
|
|
5,010
|
|
||||
Comprehensive income
|
$
|
7,466
|
|
|
$
|
6,969
|
|
|
$
|
10,914
|
|
|
$
|
13,088
|
|
|
|
Common Stock
|
|
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
|
|||||||||||
(in thousands, except share data)
|
|
Shares
|
|
Amount
|
|
Retained Earnings
|
|
Total
|
|||||||||||
Balance - December 31, 2015
|
|
24,425,546
|
|
|
$
|
286,367
|
|
|
$
|
3,141
|
|
|
$
|
(1,516
|
)
|
|
$
|
287,992
|
|
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net Income
|
|
—
|
|
|
—
|
|
|
8,078
|
|
|
—
|
|
|
8,078
|
|
||||
Change in unrealized gains on investment securities available-for-sale, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,268
|
|
|
4,268
|
|
||||
Change in unrealized gains on cash flow hedges
|
|
—
|
|
|
—
|
|
|
—
|
|
|
742
|
|
|
742
|
|
||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
|
|
13,088
|
|
|||||||
Issuance of restricted stock
|
|
61,884
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Issuance of common stock for option exercises
|
|
196,584
|
|
|
1,349
|
|
|
—
|
|
|
—
|
|
|
1,349
|
|
||||
Issuance of common stock for long-term incentive plan
|
|
66,149
|
|
|
884
|
|
|
—
|
|
|
—
|
|
|
884
|
|
||||
Restricted stock activity
|
|
—
|
|
|
307
|
|
|
—
|
|
|
—
|
|
|
307
|
|
||||
Stock-based compensation
|
|
—
|
|
|
446
|
|
|
—
|
|
|
—
|
|
|
446
|
|
||||
Balance - June 30, 2016
|
|
24,750,163
|
|
|
$
|
289,353
|
|
|
$
|
11,219
|
|
|
$
|
3,494
|
|
|
$
|
304,066
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Balance - December 31, 2016
|
|
25,093,135
|
|
|
$
|
292,747
|
|
|
$
|
16,536
|
|
|
$
|
(5,625
|
)
|
|
$
|
303,658
|
|
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net Income
|
|
—
|
|
|
—
|
|
|
7,559
|
|
|
—
|
|
|
7,559
|
|
||||
Change in unrealized gains on investment securities available-for-sale, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,482
|
|
|
3,482
|
|
||||
Change in unrealized gains (losses) on cash flow hedges
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(127
|
)
|
|
(127
|
)
|
||||
Total comprehensive income
|
|
|
|
|
|
|
|
|
|
10,914
|
|
||||||||
Issuance of restricted stock
|
|
61,715
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Issuance of common stock for option exercises
|
|
437,872
|
|
|
2,901
|
|
|
—
|
|
|
—
|
|
|
2,901
|
|
||||
Issuance of common stock for long-term incentive plan
|
|
61,799
|
|
|
1,209
|
|
|
—
|
|
|
—
|
|
|
1,209
|
|
||||
Restricted stock activity
|
|
—
|
|
|
473
|
|
|
—
|
|
|
—
|
|
|
473
|
|
||||
Stock-based compensation
|
|
—
|
|
|
280
|
|
|
—
|
|
|
—
|
|
|
280
|
|
||||
Balance - June 30, 2017
|
|
25,654,521
|
|
|
$
|
297,610
|
|
|
$
|
24,095
|
|
|
$
|
(2,270
|
)
|
|
$
|
319,435
|
|
|
Six Months Ended
|
||||||
|
June 30,
|
||||||
(in thousands)
|
2017
|
|
2016
|
||||
OPERATING ACTIVITIES
|
|
|
|
||||
Net income
|
$
|
7,559
|
|
|
$
|
8,078
|
|
Adjustments to reconcile net income to net cash provided by operating activities
|
|
|
|
||||
Provision for loan losses
|
2,614
|
|
|
1,145
|
|
||
Depreciation, amortization, and accretion
|
2,757
|
|
|
2,960
|
|
||
Amortization of restricted stock compensation
|
473
|
|
|
307
|
|
||
Stock option compensation
|
280
|
|
|
446
|
|
||
Gain on sales of available-for-sale securities
|
—
|
|
|
(44
|
)
|
||
Loss on disposition of premises and equipment, net
|
347
|
|
|
—
|
|
||
Net gains on sales of other real estate owned
|
(222
|
)
|
|
(64
|
)
|
||
Gain on sale of tax credit
|
(426
|
)
|
|
—
|
|
||
Net increase in cash value of bank owned life insurance
|
(741
|
)
|
|
(770
|
)
|
||
Net gains on sale of branches
|
(302
|
)
|
|
(3,885
|
)
|
||
Origination of servicing assets
|
(593
|
)
|
|
(967
|
)
|
||
Proceeds from sales of SBA loans
|
27,239
|
|
|
26,975
|
|
||
Net gains on sale of SBA loans
|
(1,901
|
)
|
|
(1,893
|
)
|
||
Proceeds from sales of TriNet loans
|
—
|
|
|
97,039
|
|
||
Net gains on sale of TriNet loans
|
—
|
|
|
(1,144
|
)
|
||
Changes in operating assets and liabilities -
|
|
|
|
||||
Net change in loans held for sale
|
9,117
|
|
|
(29,480
|
)
|
||
Net (increase) decrease in other assets
|
7,827
|
|
|
1,038
|
|
||
Net increase (decrease) in accrued expenses and other liabilities
|
9,983
|
|
|
7,525
|
|
||
Net cash provided by operating activities
|
64,011
|
|
|
107,266
|
|
||
INVESTING ACTIVITIES
|
|
|
|
||||
Activity in securities available-for-sale:
|
|
|
|
||||
Prepayments
|
22,563
|
|
|
21,147
|
|
||
Maturities and calls
|
1,690
|
|
|
20,932
|
|
||
Sales
|
—
|
|
|
65,103
|
|
||
Purchases
|
(121,417
|
)
|
|
(77,270
|
)
|
||
Net increase in loans held for investment
|
(7,872
|
)
|
|
(213,434
|
)
|
||
Purchases of Federal Home Loan Bank stock, net
|
(3,059
|
)
|
|
(11,544
|
)
|
||
Purchases of Federal Reserve Bank stock, net
|
(91
|
)
|
|
(3,055
|
)
|
||
Proceeds from sales of other real estate
|
709
|
|
|
1,146
|
|
||
Net cash received (paid) for branch divestiture
|
5,379
|
|
|
(140,295
|
)
|
||
Purchases of premises and equipment, net
|
(1,183
|
)
|
|
(417
|
)
|
||
Net cash used in investing activities
|
(103,281
|
)
|
|
(337,687
|
)
|
||
FINANCING ACTIVITIES
|
|
|
|
||||
Net change in deposits
|
(101,062
|
)
|
|
86,334
|
|
||
Proceeds from Federal Home Loan Bank advances
|
1,049,000
|
|
|
570,000
|
|
||
Repayments of Federal Home Loan Bank advances
|
(979,000
|
)
|
|
(330,000
|
)
|
||
Proceeds from exercise of stock options
|
3,245
|
|
|
1,446
|
|
||
Net cash (used in) provided by financing activities
|
(27,817
|
)
|
|
327,780
|
|
||
NET CHANGE IN CASH AND CASH EQUIVALENTS
|
(67,087
|
)
|
|
97,359
|
|
||
CASH AND CASH EQUIVALENTS – beginning of period
|
165,725
|
|
|
202,885
|
|
||
CASH AND CASH EQUIVALENTS – end of period
|
$
|
98,638
|
|
|
$
|
300,244
|
|
|
|
|
|
||||
|
Six Months Ended
|
||||||
|
June 30,
|
||||||
|
2017
|
|
2016
|
||||
SUPPLEMENTAL SCHEDULE OF CASH FLOWS
|
|
|
|
||||
Interest paid
|
$
|
7,420
|
|
|
$
|
5,772
|
|
Income taxes paid
|
$
|
230
|
|
|
$
|
(2,372
|
)
|
(in thousands)
|
|
|
|
|
|
|
|
Gross Amounts not Offset in the Balance Sheet
|
|
|
||||||||||||||
June 30, 2017
|
|
Gross Amounts of Recognized Assets
|
|
Gross Amounts Offset on the Balance Sheet
|
|
Net Asset Balance
|
|
Financial Instruments
|
|
Cash Collateral Received
|
|
Net Amount
|
||||||||||||
Reverse repurchase agreements
|
|
$
|
17,459
|
|
|
$
|
—
|
|
|
$
|
17,459
|
|
|
$
|
(17,459
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Derivatives
|
|
4,150
|
|
|
—
|
|
|
4,150
|
|
|
—
|
|
|
—
|
|
|
4,150
|
|
||||||
Total
|
|
$
|
21,609
|
|
|
$
|
—
|
|
|
$
|
21,609
|
|
|
$
|
(17,459
|
)
|
|
$
|
—
|
|
|
$
|
4,150
|
|
|
|
|
|
|
|
|
|
Gross Amounts not Offset in the Balance Sheet
|
|
|
||||||||||||||
|
|
Gross Amounts of Recognized Liabilities
|
|
Gross Amounts Offset on the Balance Sheet
|
|
Net Liability Balance
|
|
Financial Instruments
|
|
Cash Collateral Pledged
|
|
Net Amount
|
||||||||||||
Repurchase agreements
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Derivatives
|
|
4,244
|
|
|
—
|
|
|
4,244
|
|
|
(2,929
|
)
|
|
(1,315
|
)
|
|
—
|
|
||||||
Total
|
|
$
|
4,244
|
|
|
$
|
—
|
|
|
$
|
4,244
|
|
|
$
|
(2,929
|
)
|
|
$
|
(1,315
|
)
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
Gross Amounts not Offset in the Balance Sheet
|
|
|
||||||||||||||
December 31, 2016
|
|
Gross Amounts of Recognized Assets
|
|
Gross Amounts Offset on the Balance Sheet
|
|
Net Asset Balance
|
|
Financial Instruments
|
|
Cash Collateral Received
|
|
Net Amount
|
||||||||||||
Reverse repurchase agreements
|
|
$
|
10,896
|
|
|
$
|
—
|
|
|
$
|
10,896
|
|
|
$
|
(10,896
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Derivatives
|
|
4,310
|
|
|
—
|
|
|
4,310
|
|
|
—
|
|
|
—
|
|
|
4,310
|
|
||||||
Total
|
|
$
|
15,206
|
|
|
$
|
—
|
|
|
$
|
15,206
|
|
|
$
|
(10,896
|
)
|
|
$
|
—
|
|
|
$
|
4,310
|
|
|
|
|
|
|
|
|
|
Gross Amounts not Offset in the Balance Sheet
|
|
|
||||||||||||||
|
|
Gross Amounts of Recognized Liabilities
|
|
Gross Amounts Offset on the Balance Sheet
|
|
Net Liability Balance
|
|
Financial Instruments
|
|
Cash Collateral Pledged
|
|
Net Amount
|
||||||||||||
Repurchase agreements
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Derivatives
|
|
4,131
|
|
|
—
|
|
|
4,131
|
|
|
(1,818
|
)
|
|
(2,313
|
)
|
|
—
|
|
||||||
Total
|
|
$
|
4,131
|
|
|
$
|
—
|
|
|
$
|
4,131
|
|
|
$
|
(1,818
|
)
|
|
$
|
(2,313
|
)
|
|
$
|
—
|
|
Available-For-Sale
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
||||||||
|
|
(in thousands)
|
||||||||||||||
June 30, 2017
|
|
|
|
|
|
|
|
|
||||||||
Debt securities—
|
|
|
|
|
|
|
|
|
||||||||
U.S. Government agencies
|
|
$
|
35,299
|
|
|
$
|
105
|
|
|
$
|
(279
|
)
|
|
$
|
35,125
|
|
U.S. states and political divisions
|
|
97,502
|
|
|
316
|
|
|
(3,650
|
)
|
|
94,168
|
|
||||
Trust preferred securities
|
|
4,741
|
|
|
—
|
|
|
(53
|
)
|
|
4,688
|
|
||||
Corporate debt securities
|
|
19,777
|
|
|
119
|
|
|
(676
|
)
|
|
19,220
|
|
||||
Residential mortgage-backed securities
|
|
296,934
|
|
|
3,117
|
|
|
(2,979
|
)
|
|
297,072
|
|
||||
Total
|
|
$
|
454,253
|
|
|
$
|
3,657
|
|
|
$
|
(7,637
|
)
|
|
$
|
450,273
|
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2016
|
|
|
|
|
|
|
|
|
||||||||
Debt securities—
|
|
|
|
|
|
|
|
|
||||||||
U.S. Government agencies
|
|
$
|
21,485
|
|
|
$
|
24
|
|
|
$
|
(357
|
)
|
|
$
|
21,152
|
|
U.S. states and political divisions
|
|
96,908
|
|
|
141
|
|
|
(6,877
|
)
|
|
90,172
|
|
||||
Trust preferred securities
|
|
4,727
|
|
|
—
|
|
|
(202
|
)
|
|
4,525
|
|
||||
Corporate debt securities
|
|
19,928
|
|
|
72
|
|
|
(769
|
)
|
|
19,231
|
|
||||
Residential mortgage-backed securities
|
|
214,297
|
|
|
2,689
|
|
|
(4,361
|
)
|
|
212,625
|
|
||||
Total
|
|
$
|
357,345
|
|
|
$
|
2,926
|
|
|
$
|
(12,566
|
)
|
|
$
|
347,705
|
|
|
Available-For-Sale
|
||||||
|
Amortized
Cost
|
|
Fair
Value
|
||||
|
(in thousands)
|
||||||
Within 1 year
|
$
|
4,140
|
|
|
$
|
4,141
|
|
Over 1 year through 5 years
|
17,642
|
|
|
17,472
|
|
||
5 years to 10 years
|
60,990
|
|
|
60,448
|
|
||
Over 10 years
|
74,547
|
|
|
71,140
|
|
||
|
157,319
|
|
|
153,201
|
|
||
Residential mortgage-backed securities
|
296,934
|
|
|
297,072
|
|
||
Total
|
$
|
454,253
|
|
|
$
|
450,273
|
|
|
|
Less than 12 months
|
|
12 months or greater
|
|
Totals
|
||||||||||||||||||
Available-For-Sale
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||
June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Government agencies
|
|
$
|
24,547
|
|
|
$
|
(207
|
)
|
|
2,673
|
|
|
$
|
(72
|
)
|
|
$
|
27,220
|
|
|
$
|
(279
|
)
|
|
U.S. states and political divisions
|
|
75,219
|
|
|
(3,552
|
)
|
|
3,136
|
|
|
(98
|
)
|
|
78,355
|
|
|
(3,650
|
)
|
||||||
Trust preferred securities
|
|
—
|
|
|
—
|
|
|
4,688
|
|
|
(53
|
)
|
|
4,688
|
|
|
(53
|
)
|
||||||
Corporate debt securities
|
|
—
|
|
|
—
|
|
|
5,869
|
|
|
(676
|
)
|
|
5,869
|
|
|
(676
|
)
|
||||||
Residential mortgage-backed securities
|
|
106,559
|
|
|
(1,356
|
)
|
|
69,728
|
|
|
(1,623
|
)
|
|
176,287
|
|
|
(2,979
|
)
|
||||||
Totals
|
|
$
|
206,325
|
|
|
$
|
(5,115
|
)
|
|
$
|
86,094
|
|
|
$
|
(2,522
|
)
|
|
$
|
292,419
|
|
|
$
|
(7,637
|
)
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Government agencies
|
|
$
|
12,250
|
|
|
$
|
(263
|
)
|
|
$
|
2,881
|
|
|
$
|
(94
|
)
|
|
$
|
15,131
|
|
|
$
|
(357
|
)
|
U.S. states and political divisions
|
|
87,511
|
|
|
(6,877
|
)
|
|
—
|
|
|
—
|
|
|
87,511
|
|
|
(6,877
|
)
|
||||||
Trust preferred securities
|
|
—
|
|
|
—
|
|
|
4,525
|
|
|
(202
|
)
|
|
4,525
|
|
|
(202
|
)
|
||||||
Corporate debt securities
|
|
7,886
|
|
|
(769
|
)
|
|
—
|
|
|
—
|
|
|
7,886
|
|
|
(769
|
)
|
||||||
Residential mortgage-backed securities
|
|
151,406
|
|
|
(3,231
|
)
|
|
32,550
|
|
|
(1,130
|
)
|
|
183,956
|
|
|
(4,361
|
)
|
||||||
Totals
|
|
$
|
259,053
|
|
|
$
|
(11,140
|
)
|
|
$
|
39,956
|
|
|
$
|
(1,426
|
)
|
|
$
|
299,009
|
|
|
$
|
(12,566
|
)
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
(in thousands)
|
||||||||||||||
Proceeds from sales
|
|
$
|
—
|
|
|
$
|
60,150
|
|
|
$
|
—
|
|
|
$
|
65,103
|
|
Gross realized gains
|
|
—
|
|
|
416
|
|
|
—
|
|
|
449
|
|
||||
Gross realized losses
|
|
—
|
|
|
(405
|
)
|
|
—
|
|
|
(405
|
)
|
||||
Net gains on sales of securities
|
|
$
|
—
|
|
|
$
|
11
|
|
|
$
|
—
|
|
|
$
|
44
|
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
|
(in thousands)
|
||||||
Loans held for sale
|
|
|
|
||||
Branch loans held for sale
|
$
|
—
|
|
|
$
|
30,917
|
|
Other loans held for sale
|
1,744
|
|
|
4,302
|
|
||
Total loans held for sale
|
$
|
1,744
|
|
|
$
|
35,219
|
|
|
|
|
|
||||
Loans held for investment
|
|
|
|
||||
Commercial loans:
|
|
|
|
||||
Commercial and industrial
|
$
|
578,888
|
|
|
$
|
531,061
|
|
Commercial real estate
|
982,875
|
|
|
858,778
|
|
||
Construction and land
|
125,058
|
|
|
219,352
|
|
||
Mortgage warehouse participations
|
47,992
|
|
|
147,519
|
|
||
Total commercial loans
|
1,734,813
|
|
|
1,756,710
|
|
||
Residential:
|
|
|
|
||||
Residential mortgages
|
101,798
|
|
|
101,921
|
|
||
Home equity
|
79,769
|
|
|
77,358
|
|
||
Total residential loans
|
181,567
|
|
|
179,279
|
|
||
Consumer
|
31,981
|
|
|
27,338
|
|
||
Other
|
18,013
|
|
|
21,565
|
|
||
Total loans
|
1,966,374
|
|
|
1,984,892
|
|
||
Less net deferred fees and other unearned income
|
(4,283
|
)
|
|
(3,562
|
)
|
||
Less allowance for loan losses
|
(21,870
|
)
|
|
(20,595
|
)
|
||
Loans held for investment, net
|
$
|
1,940,221
|
|
|
$
|
1,960,735
|
|
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
||||||||||||
|
|
June 30, 2017
|
|
June 30, 2016
|
|
June 30, 2017
|
|
June 30, 2016
|
||||||||
|
|
(in thousands)
|
||||||||||||||
Balance at beginning of period
|
|
$
|
3,369
|
|
|
$
|
2,088
|
|
|
$
|
3,467
|
|
|
$
|
2,369
|
|
Additions due to acquisitions
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Accretion
|
|
(334
|
)
|
|
(262
|
)
|
|
(779
|
)
|
|
(543
|
)
|
||||
Reclassification of nonaccretable discount due to improvement in expected cash flows
|
|
92
|
|
|
—
|
|
|
344
|
|
|
—
|
|
||||
Other changes, net
|
|
3
|
|
|
—
|
|
|
98
|
|
|
—
|
|
||||
Balance at end of period
|
|
$
|
3,130
|
|
|
$
|
1,826
|
|
|
$
|
3,130
|
|
|
$
|
1,826
|
|
|
|
2017
|
|
2016
|
||||||||||||||||||||||||||||
Three Months Ended June 30,
|
|
Commercial
|
|
Residential
|
|
Consumer
|
|
Total
|
|
Commercial
|
|
Residential
|
|
Consumer
|
|
Total
|
||||||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Beginning balance
|
|
$
|
18,101
|
|
|
$
|
1,406
|
|
|
$
|
432
|
|
|
$
|
19,939
|
|
|
$
|
15,613
|
|
|
$
|
1,502
|
|
|
$
|
493
|
|
|
$
|
17,608
|
|
Provision for loan losses
|
|
2,582
|
|
|
(540
|
)
|
|
(62
|
)
|
|
1,980
|
|
|
861
|
|
|
(88
|
)
|
|
4
|
|
|
777
|
|
||||||||
Loans charged-off
|
|
—
|
|
|
(8
|
)
|
|
(57
|
)
|
|
(65
|
)
|
|
(5
|
)
|
|
(25
|
)
|
|
(38
|
)
|
|
(68
|
)
|
||||||||
Recoveries
|
|
9
|
|
|
2
|
|
|
5
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
60
|
|
|
60
|
|
||||||||
Total ending allowance balance
|
|
$
|
20,692
|
|
|
$
|
860
|
|
|
$
|
318
|
|
|
$
|
21,870
|
|
|
$
|
16,469
|
|
|
$
|
1,389
|
|
|
$
|
519
|
|
|
$
|
18,377
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
2017
|
|
2016
|
||||||||||||||||||||||||||||
Six Months Ended June 30,
|
|
Commercial
|
|
Residential
|
|
Consumer
|
|
Total
|
|
Commercial
|
|
Residential
|
|
Consumer
|
|
Total
|
||||||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Beginning balance
|
|
$
|
18,717
|
|
|
$
|
1,418
|
|
|
$
|
460
|
|
|
$
|
20,595
|
|
|
$
|
16,537
|
|
|
$
|
1,981
|
|
|
$
|
387
|
|
|
$
|
18,905
|
|
Provision for loan losses
|
|
2,879
|
|
|
(506
|
)
|
|
241
|
|
|
2,614
|
|
|
1,525
|
|
|
(567
|
)
|
|
187
|
|
|
1,145
|
|
||||||||
Loans charged-off
|
|
(913
|
)
|
|
(54
|
)
|
|
(389
|
)
|
|
(1,356
|
)
|
|
(1,610
|
)
|
|
(25
|
)
|
|
(184
|
)
|
|
(1,819
|
)
|
||||||||
Recoveries
|
|
9
|
|
|
2
|
|
|
6
|
|
|
17
|
|
|
17
|
|
|
—
|
|
|
129
|
|
|
146
|
|
||||||||
Total ending allowance balance
|
|
$
|
20,692
|
|
|
$
|
860
|
|
|
$
|
318
|
|
|
$
|
21,870
|
|
|
$
|
16,469
|
|
|
$
|
1,389
|
|
|
$
|
519
|
|
|
$
|
18,377
|
|
June 30, 2017
|
|
Commercial
|
|
Residential
|
|
Consumer
|
|
Total
|
||||||||
|
|
(in thousands)
|
||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
||||||||
Ending allowance balance attributable to loans
|
|
|
|
|
|
|
|
|
||||||||
Individually evaluated for impairment
|
|
$
|
3,249
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,249
|
|
Collectively evaluated for impairment
|
|
17,370
|
|
|
860
|
|
|
316
|
|
|
18,546
|
|
||||
PCI
|
|
73
|
|
|
—
|
|
|
2
|
|
|
75
|
|
||||
Total ending allowance balance
|
|
$
|
20,692
|
|
|
$
|
860
|
|
|
$
|
318
|
|
|
$
|
21,870
|
|
|
|
|
|
|
|
|
|
|
||||||||
Loans:
|
|
|
|
|
|
|
|
|
||||||||
Loans individually evaluated for impairment
|
|
$
|
16,931
|
|
|
$
|
868
|
|
|
$
|
—
|
|
|
$
|
17,799
|
|
Loans collectively evaluated for impairment
|
|
1,709,411
|
|
|
177,669
|
|
|
49,985
|
|
|
1,937,065
|
|
||||
PCI
|
|
8,471
|
|
|
3,030
|
|
|
9
|
|
|
11,510
|
|
||||
Total ending loans balance
|
|
$
|
1,734,813
|
|
|
$
|
181,567
|
|
|
$
|
49,994
|
|
|
$
|
1,966,374
|
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2016
|
|
Commercial
|
|
Residential
|
|
Consumer
|
|
Total
|
||||||||
|
|
(in thousands)
|
||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
||||||||
Ending allowance balance attributable to loans
|
|
|
|
|
|
|
|
|
||||||||
Individually evaluated for impairment
|
|
$
|
2,626
|
|
|
$
|
58
|
|
|
$
|
—
|
|
|
$
|
2,684
|
|
Collectively evaluated for impairment
|
|
16,018
|
|
|
1,360
|
|
|
459
|
|
|
17,837
|
|
||||
PCI
|
|
73
|
|
|
—
|
|
|
1
|
|
|
74
|
|
||||
Total ending allowance balance
|
|
$
|
18,717
|
|
|
$
|
1,418
|
|
|
$
|
460
|
|
|
$
|
20,595
|
|
|
|
|
|
|
|
|
|
|
||||||||
Loans:
|
|
|
|
|
|
|
|
|
||||||||
Loans individually evaluated for impairment
|
|
$
|
13,687
|
|
|
$
|
398
|
|
|
$
|
—
|
|
|
$
|
14,085
|
|
Loans collectively evaluated for impairment
|
|
1,732,324
|
|
|
174,338
|
|
|
48,892
|
|
|
1,955,554
|
|
||||
PCI
|
|
10,699
|
|
|
4,543
|
|
|
11
|
|
|
15,253
|
|
||||
Total ending loans balance
|
|
$
|
1,756,710
|
|
|
$
|
179,279
|
|
|
$
|
48,903
|
|
|
$
|
1,984,892
|
|
|
For the Three Months Ended June 30,
|
||||||||||||||||||||||||||||||||||||||
|
2017
|
|
2016
|
||||||||||||||||||||||||||||||||||||
|
Unpaid
Principal
Balance
|
|
Recorded
Investment
|
|
Related
Allowance
|
|
Average Balance of Recorded Investment While Impaired
|
|
Interest Income Recognized During Impairment
|
|
Unpaid
Principal
Balance
|
|
Recorded
Investment
|
|
Related
Allowance
|
|
Average Balance of Recorded Investment While Impaired
|
|
Interest Income Recognized During Impairment
|
||||||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||||||||||||||
Impaired loans with no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Commercial and industrial
|
$
|
4,962
|
|
|
$
|
4,899
|
|
|
$
|
—
|
|
|
$
|
4,866
|
|
|
$
|
13
|
|
|
$
|
2,843
|
|
|
$
|
2,843
|
|
|
$
|
—
|
|
|
$
|
2,811
|
|
|
$
|
36
|
|
Commercial real estate
|
2,494
|
|
|
2,331
|
|
|
—
|
|
|
2,361
|
|
|
20
|
|
|
557
|
|
|
416
|
|
|
—
|
|
|
413
|
|
|
21
|
|
||||||||||
Construction and land
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Residential mortgages
|
380
|
|
|
334
|
|
|
—
|
|
|
340
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Home equity
|
534
|
|
|
534
|
|
|
—
|
|
|
541
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Mortgage warehouse
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Total
|
$
|
8,370
|
|
|
$
|
8,098
|
|
|
$
|
—
|
|
|
$
|
8,108
|
|
|
$
|
33
|
|
|
$
|
3,400
|
|
|
$
|
3,259
|
|
|
$
|
—
|
|
|
$
|
3,224
|
|
|
$
|
57
|
|
Impaired loans with an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Commercial and industrial
|
$
|
9,122
|
|
|
$
|
9,122
|
|
|
$
|
3,106
|
|
|
$
|
9,160
|
|
|
$
|
138
|
|
|
$
|
78
|
|
|
$
|
78
|
|
|
$
|
390
|
|
|
$
|
78
|
|
|
$
|
—
|
|
Commercial real estate
|
579
|
|
|
579
|
|
|
143
|
|
|
582
|
|
|
6
|
|
|
1,659
|
|
|
1,659
|
|
|
261
|
|
|
1,659
|
|
|
6
|
|
||||||||||
Construction and land
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Residential mortgages
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Home equity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Mortgage warehouse
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Total
|
$
|
9,701
|
|
|
$
|
9,701
|
|
|
$
|
3,249
|
|
|
$
|
9,742
|
|
|
$
|
144
|
|
|
$
|
1,737
|
|
|
$
|
1,737
|
|
|
$
|
651
|
|
|
$
|
1,737
|
|
|
$
|
6
|
|
Total impaired loans
|
$
|
18,071
|
|
|
$
|
17,799
|
|
|
$
|
3,249
|
|
|
$
|
17,850
|
|
|
$
|
177
|
|
|
$
|
5,137
|
|
|
$
|
4,996
|
|
|
$
|
651
|
|
|
$
|
4,961
|
|
|
$
|
63
|
|
|
For the Six Months Ended June 30,
|
||||||||||||||||||||||||||||||||||||||
|
2017
|
|
2016
|
||||||||||||||||||||||||||||||||||||
|
Unpaid
Principal
Balance
|
|
Recorded
Investment
|
|
Related
Allowance
|
|
Average Balance of Recorded Investment While Impaired
|
|
Interest Income Recognized During Impairment
|
|
Unpaid
Principal
Balance
|
|
Recorded
Investment
|
|
Related
Allowance
|
|
Average Balance of Recorded Investment While Impaired
|
|
Interest Income Recognized During Impairment
|
||||||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||||||||||||||
Impaired loans with no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Commercial and industrial
|
$
|
4,962
|
|
|
$
|
4,899
|
|
|
$
|
—
|
|
|
$
|
5,346
|
|
|
$
|
30
|
|
|
$
|
2,843
|
|
|
$
|
2,843
|
|
|
$
|
—
|
|
|
$
|
2,774
|
|
|
$
|
72
|
|
Commercial real estate
|
2,494
|
|
|
2,331
|
|
|
—
|
|
|
2,439
|
|
|
20
|
|
|
557
|
|
|
416
|
|
|
—
|
|
|
413
|
|
|
21
|
|
||||||||||
Construction and land
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Residential mortgages
|
380
|
|
|
334
|
|
|
—
|
|
|
366
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Home equity
|
534
|
|
|
534
|
|
|
—
|
|
|
541
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Mortgage warehouse
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Total
|
$
|
8,370
|
|
|
$
|
8,098
|
|
|
$
|
—
|
|
|
$
|
8,692
|
|
|
$
|
50
|
|
|
$
|
3,400
|
|
|
$
|
3,259
|
|
|
$
|
—
|
|
|
$
|
3,187
|
|
|
$
|
93
|
|
Impaired loans with an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Commercial and industrial
|
$
|
9,122
|
|
|
$
|
9,122
|
|
|
$
|
3,106
|
|
|
$
|
9,200
|
|
|
$
|
246
|
|
|
$
|
78
|
|
|
$
|
78
|
|
|
$
|
390
|
|
|
$
|
78
|
|
|
$
|
—
|
|
Commercial real estate
|
579
|
|
|
579
|
|
|
143
|
|
|
585
|
|
|
13
|
|
|
1,659
|
|
|
1,659
|
|
|
261
|
|
|
1,659
|
|
|
27
|
|
||||||||||
Construction and land
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Residential mortgages
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Home equity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Mortgage warehouse
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Total
|
$
|
9,701
|
|
|
$
|
9,701
|
|
|
$
|
3,249
|
|
|
$
|
9,785
|
|
|
$
|
259
|
|
|
$
|
1,737
|
|
|
$
|
1,737
|
|
|
$
|
651
|
|
|
$
|
1,737
|
|
|
$
|
27
|
|
Total impaired loans
|
$
|
18,071
|
|
|
$
|
17,799
|
|
|
$
|
3,249
|
|
|
$
|
18,477
|
|
|
$
|
309
|
|
|
$
|
5,137
|
|
|
$
|
4,996
|
|
|
$
|
651
|
|
|
$
|
4,924
|
|
|
$
|
120
|
|
|
Pass
|
|
Special Mention
|
|
Substandard Accruing
|
|
Substandard Nonaccruing
|
|
Doubtful
|
|
Total
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
$
|
529,268
|
|
|
$
|
4,882
|
|
|
$
|
32,249
|
|
|
$
|
8,235
|
|
|
$
|
—
|
|
|
$
|
574,634
|
|
Commercial real estate
|
964,573
|
|
|
7,254
|
|
|
4,961
|
|
|
2,310
|
|
|
—
|
|
|
979,098
|
|
||||||
Construction and land
|
119,876
|
|
|
4,722
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
124,618
|
|
||||||
Residential mortgages
|
96,824
|
|
|
1,407
|
|
|
959
|
|
|
631
|
|
|
—
|
|
|
99,821
|
|
||||||
Home equity
|
77,461
|
|
|
42
|
|
|
500
|
|
|
713
|
|
|
—
|
|
|
78,716
|
|
||||||
Mortgage warehouse
|
47,992
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47,992
|
|
||||||
Consumer/Other
|
49,682
|
|
|
97
|
|
|
206
|
|
|
—
|
|
|
—
|
|
|
49,985
|
|
||||||
Total loans, excluding PCI loans
|
$
|
1,885,676
|
|
|
$
|
18,404
|
|
|
$
|
38,875
|
|
|
$
|
11,909
|
|
|
$
|
—
|
|
|
$
|
1,954,864
|
|
Commercial and industrial
|
$
|
3,200
|
|
|
$
|
272
|
|
|
$
|
782
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,254
|
|
Commercial real estate
|
3,099
|
|
|
250
|
|
|
306
|
|
|
—
|
|
|
122
|
|
|
3,777
|
|
||||||
Construction and land
|
396
|
|
|
7
|
|
|
37
|
|
|
—
|
|
|
—
|
|
|
440
|
|
||||||
Residential mortgages
|
117
|
|
|
902
|
|
|
958
|
|
|
—
|
|
|
—
|
|
|
1,977
|
|
||||||
Home equity
|
33
|
|
|
649
|
|
|
371
|
|
|
—
|
|
|
—
|
|
|
1,053
|
|
||||||
Mortgage warehouse
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Consumer/Other
|
1
|
|
|
1
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
9
|
|
||||||
Total PCI loans
|
$
|
6,846
|
|
|
$
|
2,081
|
|
|
$
|
2,461
|
|
|
$
|
—
|
|
|
$
|
122
|
|
|
$
|
11,510
|
|
|
Pass
|
|
Special Mention
|
|
Substandard Accruing
|
|
Substandard Nonaccruing
|
|
Doubtful
|
|
Total
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
$
|
494,617
|
|
|
$
|
3,160
|
|
|
$
|
26,399
|
|
|
$
|
3
|
|
|
$
|
471
|
|
|
$
|
524,650
|
|
Commercial real estate
|
843,924
|
|
|
5,513
|
|
|
5,571
|
|
|
—
|
|
|
—
|
|
|
855,008
|
|
||||||
Construction and land
|
213,981
|
|
|
4,789
|
|
|
64
|
|
|
—
|
|
|
—
|
|
|
218,834
|
|
||||||
Residential mortgages
|
97,660
|
|
|
586
|
|
|
747
|
|
|
147
|
|
|
—
|
|
|
99,140
|
|
||||||
Home equity
|
75,031
|
|
|
168
|
|
|
397
|
|
|
—
|
|
|
—
|
|
|
75,596
|
|
||||||
Mortgage warehouse
|
147,519
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
147,519
|
|
||||||
Consumer/Other
|
48,680
|
|
|
190
|
|
|
22
|
|
|
—
|
|
|
—
|
|
|
48,892
|
|
||||||
Total loans, excluding PCI loans
|
$
|
1,921,412
|
|
|
$
|
14,406
|
|
|
$
|
33,200
|
|
|
$
|
150
|
|
|
$
|
471
|
|
|
$
|
1,969,639
|
|
Commercial and industrial
|
$
|
4,650
|
|
|
$
|
299
|
|
|
$
|
614
|
|
|
$
|
—
|
|
|
$
|
848
|
|
|
$
|
6,411
|
|
Commercial real estate
|
477
|
|
|
240
|
|
|
2,716
|
|
|
—
|
|
|
337
|
|
|
3,770
|
|
||||||
Construction and land
|
229
|
|
|
8
|
|
|
281
|
|
|
—
|
|
|
—
|
|
|
518
|
|
||||||
Residential mortgages
|
59
|
|
|
1,232
|
|
|
1,016
|
|
|
—
|
|
|
474
|
|
|
2,781
|
|
||||||
Home equity
|
364
|
|
|
834
|
|
|
564
|
|
|
—
|
|
|
—
|
|
|
1,762
|
|
||||||
Mortgage warehouse
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Consumer/Other
|
1
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
11
|
|
||||||
Total PCI loans
|
$
|
5,780
|
|
|
$
|
2,613
|
|
|
$
|
5,201
|
|
|
$
|
—
|
|
|
$
|
1,659
|
|
|
$
|
15,253
|
|
|
As of June 30, 2017
|
||||||||||||||||||||||
|
Accruing Current
|
|
Accruing 30-89
Days
Past Due
|
|
Accruing
90+ Days
Past Due
|
|
Nonaccruing
|
|
PCI Loans
|
|
Total
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Loans by Classification
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
$
|
565,802
|
|
|
$
|
472
|
|
|
$
|
125
|
|
|
$
|
8,235
|
|
|
$
|
4,254
|
|
|
$
|
578,888
|
|
Commercial real estate
|
976,640
|
|
|
—
|
|
|
148
|
|
|
2,310
|
|
|
3,777
|
|
|
982,875
|
|
||||||
Construction and land
|
124,598
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
440
|
|
|
125,058
|
|
||||||
Residential mortgages
|
98,851
|
|
|
261
|
|
|
78
|
|
|
631
|
|
|
1,977
|
|
|
101,798
|
|
||||||
Home equity
|
77,963
|
|
|
—
|
|
|
40
|
|
|
713
|
|
|
1,053
|
|
|
79,769
|
|
||||||
Mortgage warehouse
|
47,992
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47,992
|
|
||||||
Consumer
|
49,984
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
49,994
|
|
||||||
Total Loans
|
$
|
1,941,830
|
|
|
$
|
734
|
|
|
$
|
391
|
|
|
$
|
11,909
|
|
|
$
|
11,510
|
|
|
$
|
1,966,374
|
|
|
As of December 31, 2016
|
||||||||||||||||||||||
|
Accruing Current
|
|
Accruing 30-89
Days
Past Due
|
|
Accruing
90+ Days
Past Due
|
|
Nonaccruing
|
|
PCI Loans
|
|
Total
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Loans by Classification
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
$
|
520,908
|
|
|
$
|
3,079
|
|
|
$
|
189
|
|
|
$
|
474
|
|
|
$
|
6,411
|
|
|
$
|
531,061
|
|
Commercial real estate
|
852,626
|
|
|
2,382
|
|
|
—
|
|
|
—
|
|
|
3,770
|
|
|
858,778
|
|
||||||
Construction and land
|
218,290
|
|
|
544
|
|
|
—
|
|
|
—
|
|
|
518
|
|
|
219,352
|
|
||||||
Residential mortgages
|
97,901
|
|
|
664
|
|
|
428
|
|
|
147
|
|
|
2,781
|
|
|
101,921
|
|
||||||
Home equity
|
74,420
|
|
|
884
|
|
|
292
|
|
|
—
|
|
|
1,762
|
|
|
77,358
|
|
||||||
Mortgage warehouse
|
147,519
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
147,519
|
|
||||||
Consumer
|
48,558
|
|
|
249
|
|
|
85
|
|
|
—
|
|
|
11
|
|
|
48,903
|
|
||||||
Total Loans
|
$
|
1,960,222
|
|
|
$
|
7,802
|
|
|
$
|
994
|
|
|
$
|
621
|
|
|
$
|
15,253
|
|
|
$
|
1,984,892
|
|
|
June 30,
|
|
December 31,
|
||||
|
2017
|
|
2016
|
||||
|
(in thousands)
|
||||||
Core deposit intangible
|
$
|
9,544
|
|
|
$
|
9,544
|
|
Less: accumulated amortization
|
(3,866
|
)
|
|
(2,971
|
)
|
||
Less: impairment related to divested branches
|
(2,286
|
)
|
|
(1,949
|
)
|
||
Core deposit intangible, net
|
3,392
|
|
|
4,624
|
|
||
Servicing assets, net
|
3,295
|
|
|
3,184
|
|
||
Total other intangibles, net
|
6,687
|
|
|
7,808
|
|
||
Goodwill
|
21,759
|
|
|
21,759
|
|
||
Total goodwill and other intangible assets, net
|
$
|
28,446
|
|
|
$
|
29,567
|
|
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||||||||||
|
|
Goodwill
|
|
Core Deposit Intangible
|
|
Total
|
|
Goodwill
|
|
Core Deposit Intangible
|
|
Total
|
||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
|
$
|
21,759
|
|
|
$
|
4,154
|
|
|
$
|
25,913
|
|
|
$
|
21,759
|
|
|
$
|
4,624
|
|
|
$
|
26,383
|
|
Amortization
|
|
—
|
|
|
(425
|
)
|
|
(425
|
)
|
|
—
|
|
|
(895
|
)
|
|
(895
|
)
|
||||||
Impairment, due to branch divestiture
|
|
—
|
|
|
(337
|
)
|
|
(337
|
)
|
|
—
|
|
|
(337
|
)
|
|
(337
|
)
|
||||||
Balance, end of period
|
|
$
|
21,759
|
|
|
$
|
3,392
|
|
|
$
|
25,151
|
|
|
$
|
21,759
|
|
|
$
|
3,392
|
|
|
$
|
25,151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
|
$
|
22,446
|
|
|
$
|
8,256
|
|
|
$
|
30,702
|
|
|
$
|
23,352
|
|
|
$
|
9,018
|
|
|
$
|
32,370
|
|
Amortization
|
|
—
|
|
|
(668
|
)
|
|
(668
|
)
|
|
—
|
|
|
(1,430
|
)
|
|
(1,430
|
)
|
||||||
Impairment, due to branch divestiture
|
|
—
|
|
|
(1,949
|
)
|
|
(1,949
|
)
|
|
—
|
|
|
(1,949
|
)
|
|
(1,949
|
)
|
||||||
Measurement period adjustments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(906
|
)
|
|
—
|
|
|
(906
|
)
|
||||||
Balance, end of period
|
|
$
|
22,446
|
|
|
$
|
5,639
|
|
|
$
|
28,085
|
|
|
$
|
22,446
|
|
|
$
|
5,639
|
|
|
$
|
28,085
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
SBA Loan Servicing Assets
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
(in thousands)
|
||||||||||||||
Beginning carrying value, net
|
|
$
|
2,495
|
|
|
$
|
1,860
|
|
|
$
|
2,359
|
|
|
$
|
1,687
|
|
Additions
|
|
326
|
|
|
359
|
|
|
593
|
|
|
561
|
|
||||
Amortization
|
|
(257
|
)
|
|
(102
|
)
|
|
(388
|
)
|
|
(131
|
)
|
||||
Impairment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Ending carrying value
|
|
$
|
2,564
|
|
|
$
|
2,117
|
|
|
$
|
2,564
|
|
|
$
|
2,117
|
|
Sensitivity of the SBA Servicing Assets
|
|
June 30, 2017
|
|
December 31, 2016
|
|
||||
|
|
(dollars in thousands)
|
|
||||||
Fair value of retained servicing assets
|
|
$
|
2,822
|
|
|
$
|
2,474
|
|
|
Weighted average life
|
|
6.69 years
|
|
|
6.52 years
|
|
|
||
Prepayment speed:
|
|
7.76
|
|
%
|
7.67
|
|
%
|
||
Decline in fair value due to a 10% adverse change
|
|
$
|
(100
|
)
|
|
$
|
(89
|
)
|
|
Decline in fair value due to a 20% adverse change
|
|
$
|
(173
|
)
|
|
$
|
(151
|
)
|
|
Weighted average discount rate
|
|
12.22
|
|
%
|
12.27
|
|
%
|
||
Decline in fair value due to a 100 bps adverse change
|
|
$
|
(109
|
)
|
|
$
|
(97
|
)
|
|
Decline in fair value due to a 200 bps adverse change
|
|
$
|
(189
|
)
|
|
$
|
(168
|
)
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
TriNet Servicing Assets
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
(in thousands)
|
||||||||||||||
Beginning carrying value, net
|
|
$
|
778
|
|
|
$
|
1,352
|
|
|
$
|
825
|
|
|
$
|
1,175
|
|
Additions
|
|
—
|
|
|
179
|
|
|
—
|
|
|
406
|
|
||||
Amortization
|
|
(47
|
)
|
|
(60
|
)
|
|
(94
|
)
|
|
(110
|
)
|
||||
Impairment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Ending carrying value
|
|
$
|
731
|
|
|
$
|
1,471
|
|
|
$
|
731
|
|
|
$
|
1,471
|
|
Sensitivity of the TriNet Servicing Assets
|
|
June 30, 2017
|
|
December 31, 2016
|
|
||||
|
|
(dollars in thousands)
|
|
||||||
Fair value of retained servicing assets
|
|
$
|
788
|
|
|
$
|
840
|
|
|
Weighted average life
|
|
8.44 years
|
|
|
8.47 years
|
|
|
||
Prepayment speed:
|
|
5.00
|
|
%
|
5.00
|
|
%
|
||
Decline in fair value due to a 10% adverse change
|
|
$
|
(8
|
)
|
|
$
|
(12
|
)
|
|
Decline in fair value due to a 20% adverse change
|
|
$
|
(23
|
)
|
|
$
|
(24
|
)
|
|
Weighted average discount rate
|
|
8.00
|
|
%
|
8.00
|
|
%
|
||
Decline in fair value due to a 100 bps adverse change
|
|
$
|
(22
|
)
|
|
$
|
(25
|
)
|
|
Decline in fair value due to a 200 bps adverse change
|
|
$
|
(43
|
)
|
|
$
|
(49
|
)
|
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
||||||||||||||||||||
|
June 30, 2017
|
|
June 30, 2017
|
||||||||||||||||||||
|
Pre-Tax Amount
|
|
Income Tax (Expense) Benefit
|
|
After-Tax Amount
|
|
Pre-Tax Amount
|
|
Income Tax (Expense) Benefit
|
|
After-Tax Amount
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Accumulated other comprehensive income (loss) beginning of period
|
$
|
(8,790
|
)
|
|
$
|
3,383
|
|
|
$
|
(5,407
|
)
|
|
$
|
(9,144
|
)
|
|
$
|
3,519
|
|
|
$
|
(5,625
|
)
|
Unrealized net gains (losses) on investment securities available-for-sale
|
5,069
|
|
|
(1,951
|
)
|
|
3,118
|
|
|
5,660
|
|
|
(2,178
|
)
|
|
3,482
|
|
||||||
Reclassification adjustment for net realized gains (losses) on investment securities available-for-sale
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Unrealized net gains (losses) on derivatives
|
31
|
|
|
(12
|
)
|
|
19
|
|
|
(206
|
)
|
|
79
|
|
|
(127
|
)
|
||||||
Accumulated other comprehensive income (loss) end of period
|
$
|
(3,690
|
)
|
|
$
|
1,420
|
|
|
$
|
(2,270
|
)
|
|
$
|
(3,690
|
)
|
|
$
|
1,420
|
|
|
$
|
(2,270
|
)
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
||||||||||||||||||||
|
June 30, 2016
|
|
June 30, 2016
|
||||||||||||||||||||
|
Pre-Tax Amount
|
|
Income Tax (Expense) Benefit
|
|
After-Tax Amount
|
|
Pre-Tax Amount
|
|
Income Tax (Expense) Benefit
|
|
After-Tax Amount
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Accumulated other comprehensive income (loss) beginning of period
|
$
|
2,724
|
|
|
$
|
(1,052
|
)
|
|
$
|
1,672
|
|
|
$
|
(2,455
|
)
|
|
$
|
939
|
|
|
$
|
(1,516
|
)
|
Unrealized net gains (losses) on investment securities available-for-sale
|
2,703
|
|
|
(1,043
|
)
|
|
1,660
|
|
|
6,978
|
|
|
(2,683
|
)
|
|
4,295
|
|
||||||
Reclassification adjustment for net realized gains on investment securities available-for-sale
|
(11
|
)
|
|
4
|
|
|
(7
|
)
|
|
(44
|
)
|
|
17
|
|
|
(27
|
)
|
||||||
Unrealized net gains (losses) on derivatives
|
275
|
|
|
(106
|
)
|
|
169
|
|
|
1,212
|
|
|
(470
|
)
|
|
742
|
|
||||||
Accumulated other comprehensive income (loss) end of period
|
$
|
5,691
|
|
|
$
|
(2,197
|
)
|
|
$
|
3,494
|
|
|
$
|
5,691
|
|
|
$
|
(2,197
|
)
|
|
$
|
3,494
|
|
|
June 30, 2017
|
|
|
December 31, 2016
|
||||||||||
|
Balance
|
|
Interest Rate
|
|
|
Balance
|
|
Interest Rate
|
||||||
|
(in thousands)
|
|
|
(in thousands)
|
||||||||||
FHLB short-term borrowings:
|
|
|
|
|
FHLB short-term borrowings:
|
|
|
|
||||||
Fixed rate advance maturing July 3, 2017
|
25,000
|
|
|
1.02
|
%
|
|
Fixed rate advance maturing January 17, 2017
|
40,000
|
|
|
0.64
|
%
|
||
Fixed rate advance maturing July 20, 2017
|
40,000
|
|
|
1.16
|
%
|
|
Fixed rate advance maturing January 24, 2017
|
40,000
|
|
|
0.61
|
%
|
||
Fixed rate advance maturing July 24, 2017
|
35,000
|
|
|
1.16
|
%
|
|
Fixed rate advance maturing January 30, 2017
|
30,000
|
|
|
0.62
|
%
|
||
Fixed rate advance maturing July 24, 2017
|
40,000
|
|
|
1.17
|
%
|
|
Total
|
$
|
110,000
|
|
|
|
||
Fixed rate advance maturing July 27, 2017
|
40,000
|
|
|
1.17
|
%
|
|
|
|
|
|
||||
Total
|
$
|
180,000
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||||
Federal Funds purchased and securities sold under agreements to repurchase
|
|
|
|
|
Federal Funds purchased and securities sold under agreements to repurchase
|
|
|
|
||||||
Federal Funds purchased
|
15,000
|
|
|
1.28%- 1.31%
|
|
|
Federal Funds purchased
|
—
|
|
|
—
|
%
|
||
|
|
|
|
|
|
|
|
|
||||||
Total Short-Term Borrowings
|
$
|
195,000
|
|
|
|
|
Total Short-Term Borrowings
|
$
|
110,000
|
|
|
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
|
|
(in thousands
|
||||||
Floating rate 10 year capital securities, with interest paid semi-annually at an annual fixed rate of 6.25% until September 30, 2020
|
|
$
|
50,000
|
|
|
$
|
50,000
|
|
Principal amount of subordinated debt
|
|
$
|
50,000
|
|
|
$
|
50,000
|
|
Less debt issuance costs
|
|
|
549
|
|
|
|
634
|
|
Subordinated debt, net
|
|
$
|
49,451
|
|
|
$
|
49,366
|
|
|
Shares
|
|
Weighted Average Exercise Price
|
|
Weighted Average Remaining Contractual Term (in years)
|
|
Aggregate Intrinsic Value
|
|||||
Outstanding, December 31, 2016
|
1,485,704
|
|
|
$
|
11.69
|
|
|
|
|
|
||
Exercised
|
(694,984
|
)
|
|
10.48
|
|
|
|
|
|
|||
Forfeited
|
(628
|
)
|
|
10.31
|
|
|
|
|
|
|||
Expired
|
(635
|
)
|
|
126.22
|
|
|
|
|
|
|||
Outstanding, June 30, 2017
|
789,457
|
|
|
$
|
12.61
|
|
|
6.02
|
|
$
|
5,274
|
|
|
|
|
|
|
|
|
|
|||||
Exercisable, June 30, 2017
|
513,515
|
|
|
$
|
11.72
|
|
|
4.99
|
|
$
|
3,926
|
|
|
Shares
|
|
Weighted Average Grant-Date Fair Value
|
|||
Outstanding, December 31, 2016
|
259,165
|
|
|
$
|
13.70
|
|
Granted
|
61,715
|
|
|
18.72
|
|
|
Vested
|
(58,309
|
)
|
|
12.25
|
|
|
Forfeited
|
(26,875
|
)
|
|
14.57
|
|
|
Outstanding, June 30, 2017
|
235,696
|
|
|
$
|
15.27
|
|
|
Fair Value Measurements at
|
||||||||||||||
|
June 30, 2017 Using:
|
||||||||||||||
|
Quoted Prices in
Active Markets for
Identical Securities
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Total
|
||||||||
|
(in thousands)
|
||||||||||||||
Securities available-for-sale—
|
|
|
|
|
|
|
|
||||||||
U.S. government agencies
|
$
|
—
|
|
|
$
|
35,125
|
|
|
$
|
—
|
|
|
$
|
35,125
|
|
U.S. states and political subdivisions
|
—
|
|
|
94,168
|
|
|
—
|
|
|
94,168
|
|
||||
Trust preferred securities
|
—
|
|
|
4,688
|
|
|
—
|
|
|
4,688
|
|
||||
Corporate debt securities
|
—
|
|
|
19,220
|
|
|
—
|
|
|
19,220
|
|
||||
Mortgage-backed securities
|
—
|
|
|
297,072
|
|
|
—
|
|
|
297,072
|
|
||||
Total securities available-for-sale
|
$
|
—
|
|
|
$
|
450,273
|
|
|
$
|
—
|
|
|
$
|
450,273
|
|
Interest rate derivative assets
|
$
|
—
|
|
|
$
|
4,150
|
|
|
$
|
—
|
|
|
$
|
4,150
|
|
Interest rate derivative liabilities
|
$
|
—
|
|
|
$
|
4,244
|
|
|
$
|
—
|
|
|
$
|
4,244
|
|
|
Fair Value Measurements at
|
||||||||||||||
|
December 31, 2016 Using:
|
||||||||||||||
|
Quoted Prices in
Active Markets for
Identical Securities
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Total
|
||||||||
|
(in thousands)
|
||||||||||||||
Securities available-for-sale—
|
|
|
|
|
|
|
|
||||||||
U.S. government agencies
|
$
|
—
|
|
|
$
|
21,152
|
|
|
$
|
—
|
|
|
$
|
21,152
|
|
U.S. states and political subdivisions
|
—
|
|
|
90,172
|
|
|
—
|
|
|
90,172
|
|
||||
Trust preferred securities
|
—
|
|
|
4,525
|
|
|
—
|
|
|
4,525
|
|
||||
Corporate debt securities
|
—
|
|
|
19,231
|
|
|
—
|
|
|
19,231
|
|
||||
Mortgage-backed securities
|
—
|
|
|
212,625
|
|
|
—
|
|
|
212,625
|
|
||||
Total securities available-for-sale
|
$
|
—
|
|
|
$
|
347,705
|
|
|
$
|
—
|
|
|
$
|
347,705
|
|
Interest rate derivative assets
|
$
|
—
|
|
|
$
|
4,310
|
|
|
$
|
—
|
|
|
$
|
4,310
|
|
Interest rate derivative liabilities
|
$
|
—
|
|
|
$
|
4,131
|
|
|
$
|
—
|
|
|
$
|
4,131
|
|
June 30, 2017
|
|
Level 1
Fair Value
Measurement
|
|
Level 2
Fair Value
Measurement
|
|
Level 3
Fair Value
Measurement
|
|
Total
|
||||||||
|
(in thousands)
|
|||||||||||||||
Impaired Loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7,655
|
|
|
$
|
7,655
|
|
December 31, 2016
|
|
Level 1
Fair Value
Measurement
|
|
Level 2
Fair Value
Measurement
|
|
Level 3
Fair Value
Measurement
|
|
Total
|
||||||||
|
(in thousands)
|
|||||||||||||||
Impaired Loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7,248
|
|
|
$
|
7,248
|
|
|
Fair Value Measurements at
|
||||||||||||||
|
June 30, 2017 Using:
|
||||||||||||||
|
Carrying
Value
|
|
Quoted Prices in Active markets for Identical Securities (Level 1)
|
|
Significant Other Observable Inputs
(Level 2)
|
|
Significant Unobservable Inputs
(Level 3)
|
||||||||
|
(in thousands)
|
||||||||||||||
Financial assets
|
|
|
|
|
|
|
|
||||||||
Cash and due from banks
|
$
|
45,008
|
|
|
$
|
45,008
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest bearing deposits in banks
|
36,171
|
|
|
36,171
|
|
|
—
|
|
|
—
|
|
||||
Other short-term investments
|
17,459
|
|
|
17,459
|
|
|
—
|
|
|
—
|
|
||||
Total securities available-for-sale
|
450,273
|
|
|
—
|
|
|
450,273
|
|
|
—
|
|
||||
FHLB stock
|
10,126
|
|
|
—
|
|
|
—
|
|
|
10,126
|
|
||||
Federal Reserve Bank stock
|
9,781
|
|
|
—
|
|
|
—
|
|
|
9,781
|
|
||||
Loans held for investment, net
|
1,940,221
|
|
|
—
|
|
|
—
|
|
|
1,999,159
|
|
||||
Loans held for sale
|
1,744
|
|
|
—
|
|
|
1,744
|
|
|
—
|
|
||||
Derivative assets
|
4,150
|
|
|
—
|
|
|
4,150
|
|
|
—
|
|
||||
Financial liabilities
|
|
|
|
|
|
|
|
||||||||
Deposits
|
$
|
2,113,954
|
|
|
$
|
—
|
|
|
$
|
2,006,800
|
|
|
$
|
—
|
|
Federal funds purchased and securities sold under agreements to repurchase
|
15,000
|
|
|
15,000
|
|
|
—
|
|
|
—
|
|
||||
Subordinated debt
|
49,451
|
|
|
—
|
|
|
50,007
|
|
|
—
|
|
||||
FHLB advances
|
180,000
|
|
|
—
|
|
|
180,012
|
|
|
—
|
|
||||
Derivative financial instruments
|
4,244
|
|
|
—
|
|
|
4,244
|
|
|
—
|
|
|
Fair Value Measurements at
|
||||||||||||||
|
December 31, 2016 Using:
|
||||||||||||||
|
Carrying
Value
|
|
Quoted Prices in Active markets for Identical Securities (Level 1)
|
|
Significant Other Observable Inputs
(Level 2)
|
|
Significant Unobservable Inputs
(Level 3)
|
||||||||
|
(in thousands)
|
||||||||||||||
Financial assets
|
|
|
|
|
|
|
|
||||||||
Cash and due from banks
|
$
|
36,790
|
|
|
$
|
36,790
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest-bearing deposits in other banks
|
118,039
|
|
|
118,039
|
|
|
—
|
|
|
—
|
|
||||
Other short-term investments
|
10,896
|
|
|
10,896
|
|
|
—
|
|
|
—
|
|
||||
Total securities available-for-sale
|
347,705
|
|
|
—
|
|
|
347,705
|
|
|
—
|
|
||||
FHLB stock
|
7,067
|
|
|
—
|
|
|
—
|
|
|
7,067
|
|
||||
Federal Reserve Bank stock
|
9,690
|
|
|
—
|
|
|
—
|
|
|
9,690
|
|
||||
Loans held for investment, net
|
1,960,735
|
|
|
—
|
|
|
—
|
|
|
1,939,895
|
|
||||
Loans held for sale
|
35,219
|
|
|
—
|
|
|
35,219
|
|
|
—
|
|
||||
Derivative assets
|
4,310
|
|
|
—
|
|
|
4,310
|
|
|
—
|
|
||||
Financial liabilities
|
|
|
|
|
|
|
|
||||||||
Deposits
|
$
|
2,205,991
|
|
|
$
|
—
|
|
|
$
|
2,144,196
|
|
|
$
|
—
|
|
Deposits to be assumed in branch sale
|
31,589
|
|
|
—
|
|
|
31,589
|
|
|
—
|
|
||||
Subordinated debt
|
49,366
|
|
|
—
|
|
|
48,971
|
|
|
—
|
|
||||
FHLB advances
|
110,000
|
|
|
—
|
|
|
109,946
|
|
|
—
|
|
||||
Derivative financial instruments
|
4,131
|
|
|
—
|
|
|
4,131
|
|
|
—
|
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
|
(in thousands)
|
||||||
Financial Instruments whose contract amount represents credit risk:
|
|
||||||
Commitments to extend credit
|
$
|
631,250
|
|
|
$
|
617,432
|
|
Standby letters of credit
|
15,925
|
|
|
16,625
|
|
||
|
$
|
647,175
|
|
|
$
|
634,057
|
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
•
|
the expected growth opportunities and cost savings from the acquisition of First Security Group, Inc. (“First Security”) may not be fully realized or may take longer to realize than expected;
|
•
|
loss of income from our TriNet division following our exit of this business;
|
•
|
changes in asset quality and credit risk;
|
•
|
the cost and availability of capital;
|
•
|
customer acceptance of our products and services;
|
•
|
customer borrowing, repayment, investment and deposit practices;
|
•
|
the introduction, withdrawal, success and timing of business initiatives;
|
•
|
the impact, extent, and timing of technological changes;
|
•
|
severe catastrophic events in our geographic area;
|
•
|
a weakening of the economies in which we conduct operations may adversely affect our operating results;
|
•
|
the potential impact of any legal, regulatory and policy changes affecting financial institutions and the economies in which we conduct operations as a result of the new presidential administration;
|
•
|
the U.S. legal and regulatory framework, including those associated with the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), could adversely affect the operating results of the company;
|
•
|
the interest rate environment may compress margins and adversely affect net interest income;
|
•
|
changes in trade, monetary, and fiscal policies of various governmental bodies and central banks could affect the economic environment in which we operate;
|
•
|
our ability to determine accurate values of certain assets and liabilities;
|
•
|
adverse developments in securities, public debt, and capital markets, including changes in market liquidity and volatility;
|
•
|
our ability to anticipate interest rate changes correctly and manage interest rate risk presented through unanticipated changes in our interest rate risk position and/or short- and long-term interest rates;
|
•
|
unanticipated changes in our liquidity position, including but not limited to our ability to enter the financial markets to manage and respond to any changes to our liquidity position;
|
•
|
adequacy of our risk management program;
|
•
|
increased costs associated with operating as a public company;
|
•
|
increased competitive pressure due to consolidation in the financial services industry; or
|
•
|
other risks and factors identified in our Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 14, 2017 (the “Annual Report”) in Part I, Item 1A under the heading “Risk Factors.”
|
•
|
a $1.2 million, or 84%, increase to $2.6 million in taxable equivalent interest income on investment securities, resulting from a $96.7 million, or 27%, increase in average balance, due primarily to the increased investment in non-taxable investment securities; and
|
•
|
a $1.1 million, or 5%, increase in interest income on loans, resulting from increases in the Fed Funds rate in December 2016 and March 2017.
|
•
|
a $1.8 million, or 59%, increase to $4.9 million in tax equivalent interest income on investment securities, resulting from a $79.2 million, or 22%, increase in average balance, due primarily to the increased investment in non-taxable investment securities; and
|
•
|
a $1.4 million, or 4%, increase in interest income on loans, resulting from increases in the Fed Funds rate in December 2016 and March 2017.
|
Table 4 - Noninterest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
Three months ended June 30,
|
|
Change
|
|
Six months ended June 30,
|
|
Change
|
|
||||||||||||||||||||||
|
|
2017
|
|
2016
|
|
$
|
|
%
|
|
2017
|
|
2016
|
|
$
|
|
%
|
|
||||||||||||||
Service charges
|
|
$
|
1,274
|
|
|
$
|
1,392
|
|
|
$
|
(118
|
)
|
|
(8
|
)
|
%
|
$
|
2,623
|
|
|
$
|
2,890
|
|
|
$
|
(267
|
)
|
|
(9
|
)
|
%
|
Securities gains, net
|
|
—
|
|
|
11
|
|
|
(11
|
)
|
|
(100
|
)
|
|
—
|
|
|
44
|
|
|
(44
|
)
|
|
(100
|
)
|
|
||||||
Gain on sales of other assets
|
|
666
|
|
|
31
|
|
|
635
|
|
|
2,048
|
|
|
744
|
|
|
79
|
|
|
665
|
|
|
842
|
|
|
||||||
Mortgage income
|
|
388
|
|
|
447
|
|
|
(59
|
)
|
|
(13
|
)
|
|
645
|
|
|
786
|
|
|
(141
|
)
|
|
(18
|
)
|
|
||||||
Trust income
|
|
488
|
|
|
386
|
|
|
102
|
|
|
26
|
|
|
895
|
|
|
700
|
|
|
195
|
|
|
28
|
|
|
||||||
Derivatives income (loss)
|
|
116
|
|
|
98
|
|
|
18
|
|
|
18
|
|
|
65
|
|
|
163
|
|
|
(98
|
)
|
|
(60
|
)
|
|
||||||
Bank owned life insurance
|
|
384
|
|
|
398
|
|
|
(14
|
)
|
|
(4
|
)
|
|
762
|
|
|
791
|
|
|
(29
|
)
|
|
(4
|
)
|
|
||||||
SBA lending activities
|
|
1,171
|
|
|
1,204
|
|
|
(33
|
)
|
|
(3
|
)
|
|
2,398
|
|
|
2,084
|
|
|
314
|
|
|
15
|
|
|
||||||
TriNet lending activities
|
|
20
|
|
|
761
|
|
|
(741
|
)
|
|
(97
|
)
|
|
40
|
|
|
1,144
|
|
|
(1,104
|
)
|
|
(97
|
)
|
|
||||||
Gains on sale of branches
|
|
302
|
|
|
3,885
|
|
|
(3,583
|
)
|
|
(92
|
)
|
|
302
|
|
|
3,885
|
|
|
(3,583
|
)
|
|
(92
|
)
|
|
||||||
Other noninterest income
|
|
478
|
|
|
267
|
|
|
211
|
|
|
79
|
|
|
670
|
|
|
734
|
|
|
(64
|
)
|
|
(9
|
)
|
|
||||||
Total noninterest income
|
|
$
|
5,287
|
|
|
$
|
8,880
|
|
|
$
|
(3,593
|
)
|
|
(40
|
)
|
%
|
$
|
9,144
|
|
|
$
|
13,300
|
|
|
$
|
(4,156
|
)
|
|
(31
|
)
|
%
|
Table 5 - Noninterest Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
Three months ended June 30,
|
|
Change
|
|
Six months ended June 30,
|
|
Change
|
|
||||||||||||||||||||||
|
|
2017
|
|
2016
|
|
$
|
|
%
|
|
2017
|
|
2016
|
|
$
|
|
%
|
|
||||||||||||||
Salaries and employee benefits
|
|
$
|
10,603
|
|
|
$
|
10,420
|
|
|
$
|
183
|
|
|
2
|
|
%
|
$
|
21,668
|
|
|
$
|
20,975
|
|
|
$
|
693
|
|
|
3
|
|
%
|
Occupancy
|
|
1,074
|
|
|
1,274
|
|
|
(200
|
)
|
|
(16
|
)
|
|
2,304
|
|
|
2,374
|
|
|
(70
|
)
|
|
(3
|
)
|
|
||||||
Equipment and software
|
|
996
|
|
|
724
|
|
|
272
|
|
|
38
|
|
|
1,801
|
|
|
1,410
|
|
|
391
|
|
|
28
|
|
|
||||||
Professional services
|
|
973
|
|
|
760
|
|
|
213
|
|
|
28
|
|
|
1,877
|
|
|
1,508
|
|
|
369
|
|
|
24
|
|
|
||||||
Postage, printing and supplies
|
|
78
|
|
|
159
|
|
|
(81
|
)
|
|
(51
|
)
|
|
163
|
|
|
328
|
|
|
(165
|
)
|
|
(50
|
)
|
|
||||||
Communications and data processing
|
|
1,069
|
|
|
694
|
|
|
375
|
|
|
54
|
|
|
2,056
|
|
|
1,610
|
|
|
446
|
|
|
28
|
|
|
||||||
Marketing and business development
|
|
179
|
|
|
317
|
|
|
(138
|
)
|
|
(44
|
)
|
|
449
|
|
|
584
|
|
|
(135
|
)
|
|
(23
|
)
|
|
||||||
FDIC premiums
|
|
132
|
|
|
493
|
|
|
(361
|
)
|
|
(73
|
)
|
|
446
|
|
|
891
|
|
|
(445
|
)
|
|
(50
|
)
|
|
||||||
Merger and conversion costs
|
|
304
|
|
|
1,210
|
|
|
(906
|
)
|
|
(75
|
)
|
|
304
|
|
|
1,959
|
|
|
(1,655
|
)
|
|
(84
|
)
|
|
||||||
Amortization of intangibles
|
|
425
|
|
|
668
|
|
|
(243
|
)
|
|
(36
|
)
|
|
895
|
|
|
1,430
|
|
|
(535
|
)
|
|
(37
|
)
|
|
||||||
Foreclosed property/problem asset expense
|
|
107
|
|
|
55
|
|
|
52
|
|
|
95
|
|
|
110
|
|
|
159
|
|
|
(49
|
)
|
|
(31
|
)
|
|
||||||
Other noninterest expense
|
|
1,683
|
|
|
2,169
|
|
|
(486
|
)
|
|
(22
|
)
|
|
3,294
|
|
|
3,981
|
|
|
(687
|
)
|
|
(17
|
)
|
|
||||||
Total noninterest expense
|
|
$
|
17,623
|
|
|
$
|
18,943
|
|
|
$
|
(1,320
|
)
|
|
(7
|
)
|
%
|
$
|
35,367
|
|
|
$
|
37,209
|
|
|
$
|
(1,842
|
)
|
|
(5
|
)
|
%
|
Table 6 - Loans
|
|
|
|
|
|
|
|
|
|
|
||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
June 30, 2017
|
|
% of Total Loans
|
|
|
December 31, 2016
|
|
% of Total Loans
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
Loans held for sale
|
|
|
|
|
|
|
|
|
|
|
||||||
Branch loans held for sale
|
|
$
|
—
|
|
|
|
|
|
$
|
30,917
|
|
|
|
|
||
Other loans held for sale
|
|
1,744
|
|
|
|
|
|
4,302
|
|
|
|
|
||||
Total loans held for sale
|
|
$
|
1,744
|
|
|
|
|
|
$
|
35,219
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||
Loans held for investment
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial and industrial
|
|
$
|
578,888
|
|
|
30
|
|
%
|
|
$
|
531,061
|
|
|
27
|
|
%
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
||||||
Owner occupied
|
|
351,733
|
|
|
18
|
|
|
|
352,523
|
|
|
18
|
|
|
||
Non-owner occupied
|
|
631,142
|
|
|
32
|
|
|
|
506,255
|
|
|
26
|
|
|
||
Construction and land
|
|
125,058
|
|
|
6
|
|
|
|
219,352
|
|
|
11
|
|
|
||
Mortgage warehouse participations
|
|
47,992
|
|
|
2
|
|
|
|
147,519
|
|
|
7
|
|
|
||
Total commercial loans
|
|
1,734,813
|
|
|
88
|
|
|
|
1,756,710
|
|
|
89
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||
Residential:
|
|
|
|
|
|
|
|
|
|
|
||||||
Residential mortgages
|
|
101,798
|
|
|
5
|
|
|
|
101,921
|
|
|
5
|
|
|
||
Home equity
|
|
79,769
|
|
|
4
|
|
|
|
77,358
|
|
|
4
|
|
|
||
Total residential loans
|
|
181,567
|
|
|
9
|
|
|
|
179,279
|
|
|
9
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||
Consumer
|
|
31,981
|
|
|
2
|
|
|
|
27,338
|
|
|
1
|
|
|
||
Other
|
|
18,013
|
|
|
1
|
|
|
|
21,565
|
|
|
1
|
|
|
||
|
|
1,966,374
|
|
|
|
|
|
1,984,892
|
|
|
|
|
||||
Less net deferred fees and other unearned income
|
|
(4,283
|
)
|
|
|
|
|
(3,562
|
)
|
|
|
|
||||
Total loans held for investment
|
|
1,962,091
|
|
|
|
|
|
1,981,330
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||
Total loans
|
|
$
|
1,963,835
|
|
|
|
|
|
$
|
2,016,549
|
|
|
|
|
Table 7 - Nonperforming assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
June 30, 2017
|
|
March 31, 2017
|
|
December 31, 2016
|
|
September 30, 2016
|
|
June 30, 2016
|
|
||||||||||
Nonaccrual loans
|
|
$
|
11,909
|
|
|
$
|
3,212
|
|
|
$
|
621
|
|
|
$
|
28
|
|
|
$
|
657
|
|
|
Loans past due 90 days and still accruing
|
|
391
|
|
|
771
|
|
|
994
|
|
|
762
|
|
|
265
|
|
|
|||||
Total nonperforming loans* (NPLs)
|
|
12,300
|
|
|
3,983
|
|
|
1,615
|
|
|
790
|
|
|
922
|
|
|
|||||
Other real estate owned
|
|
1,819
|
|
|
1,869
|
|
|
1,872
|
|
|
1,727
|
|
|
951
|
|
|
|||||
Total nonperforming assets (NPAs)
|
|
$
|
14,119
|
|
|
$
|
5,852
|
|
|
$
|
3,487
|
|
|
$
|
2,517
|
|
|
$
|
1,873
|
|
|
NPLs as a percentage of total loans
|
|
0.63
|
|
%
|
0.21
|
|
%
|
0.08
|
|
%
|
0.04
|
|
%
|
0.05
|
|
%
|
|||||
NPAs as a percentage of total assets
|
|
0.52
|
|
|
0.21
|
|
|
0.13
|
|
|
0.09
|
|
|
0.07
|
|
|
Table 8 - Troubled Debt Restructurings
|
||||||||
(dollars in thousands)
|
|
|
|
|
||||
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
Accruing TDRs
|
|
$
|
5,558
|
|
|
$
|
6,602
|
|
Nonaccruing TDRs
|
|
534
|
|
|
—
|
|
||
Total TDRs
|
|
$
|
6,092
|
|
|
$
|
6,602
|
|
Table 10 - Securities
|
|
|
|
|
|
||||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
June 30, 2017
|
|
December 31, 2016
|
|
||||||||||||
Available for Sale Securities
|
|
Amortized Cost
|
|
Fair Value
|
|
Amortized Cost
|
|
Fair Value
|
|
||||||||
U.S. Government agencies
|
|
$
|
35,299
|
|
|
$
|
35,125
|
|
|
$
|
21,485
|
|
|
$
|
21,152
|
|
|
U.S. states and political divisions
|
|
97,502
|
|
|
94,168
|
|
|
96,908
|
|
|
90,172
|
|
|
||||
Trust preferred securities
|
|
4,741
|
|
|
4,688
|
|
|
4,727
|
|
|
4,525
|
|
|
||||
Corporate debt securities
|
|
19,777
|
|
|
19,220
|
|
|
19,928
|
|
|
19,231
|
|
|
||||
Residential mortgage-backed securities
|
|
296,934
|
|
|
297,072
|
|
|
214,297
|
|
|
212,625
|
|
|
||||
Total
|
|
$
|
454,253
|
|
|
$
|
450,273
|
|
|
$
|
357,345
|
|
|
$
|
347,705
|
|
|
•
|
tactical liquidity measures the risk of a negative cash flow position whereby cash outflows exceed cash inflows over a short-term horizon;
|
•
|
structural liquidity measures the amount by which illiquid assets are supported by long-term funding; and
|
•
|
contingent liquidity utilizes cash flow stress testing across three crisis scenarios to determine the adequacy of Atlantic Capital’s liquidity.
|
Table 12 - Capital Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
Consolidated
|
|
Bank
|
|
Regulatory Guidelines
|
|
|||||||||||||||||||
|
|
June 30, 2017
|
|
December 31, 2016
|
|
June 30, 2017
|
|
December 31, 2016
|
|
Minimum
|
|
Well capitalized
|
|
Minimum Capital plus capital conservation buffer 2019
|
|
|||||||||||
Risk based ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Common equity tier 1 capital
|
|
10.9
|
|
%
|
10.3
|
|
%
|
12.4
|
|
%
|
11.8
|
|
%
|
4.5
|
|
%
|
6.5
|
|
%
|
7.0
|
|
%
|
||||
Tier 1 Capital
|
|
10.9
|
|
|
10.3
|
|
|
12.4
|
|
|
11.8
|
|
|
6.0
|
|
|
8.0
|
|
|
8.5
|
|
|
||||
Total capital
|
|
14.0
|
|
|
13.3
|
|
|
13.4
|
|
|
12.7
|
|
|
8.0
|
|
|
10.0
|
|
|
10.5
|
|
|
||||
Leverage ratio
|
|
9.5
|
|
|
9.1
|
|
|
10.7
|
|
|
10.4
|
|
|
4.0
|
|
|
5.0
|
|
|
N/A
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Common equity tier 1 capital
|
|
$
|
254,997
|
|
|
$
|
241,313
|
|
|
$
|
289,691
|
|
|
$
|
276,778
|
|
|
|
|
|
|
|
|
|||
Tier 1 capital
|
|
254,997
|
|
|
241,313
|
|
|
289,691
|
|
|
276,778
|
|
|
|
|
|
|
|
|
|||||||
Total capital
|
|
327,098
|
|
|
311,954
|
|
|
312,341
|
|
|
298,053
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Risk weighted assets
|
|
2,337,068
|
|
|
2,343,622
|
|
|
2,336,639
|
|
|
2,344,387
|
|
|
|
|
|
|
|
|
|||||||
Quarterly average total assets for leverage ratio
|
|
2,762,389
|
|
|
2,654,473
|
|
|
2,704,198
|
|
|
2,654,473
|
|
|
|
|
|
|
|
|
Table 13 - Tier 1 Common Equity
|
|||||
(dollars in thousands)
|
|
|
|
||
|
|
|
|
||
|
|
June 30, 2017
|
|
||
Tier 1 capital
|
|
$
|
254,997
|
|
|
Less: restricted core capital
|
|
—
|
|
|
|
Tier 1 common equity
|
|
$
|
254,997
|
|
|
|
|
|
|
||
Risk-adjusted assets
|
|
$
|
2,337,068
|
|
|
Tier 1 common equity ratio
|
|
10.9
|
|
%
|
Table 14 - Net Interest Income Sensitivity Simulation Analysis
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||
|
|
Estimated change in net interest income
|
||||||||
Change in interest rate (basis point)
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||
-100
|
|
(10.84
|
)
|
%
|
|
|
(8.59
|
)
|
%
|
|
+100
|
|
7.22
|
|
|
|
|
8.20
|
|
|
|
+200
|
|
13.88
|
|
|
|
|
16.39
|
|
|
|
+300
|
|
20.39
|
|
|
|
|
20.34
|
|
|
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
ITEM 1A.
|
RISK FACTORS
|
ITEM 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
ITEM 3.
|
DEFAULTS UPON SENIOR SECURITIES
|
ITEM 4.
|
MINE SAFETY DISCLOSURES
|
ITEM 5.
|
OTHER INFORMATION
|
ITEM 6.
|
EXHIBITS
|
|
ATLANTIC CAPITAL BANCSHARES, INC.
|
|
|
|
/s/ Douglas L. Williams
|
|
Douglas L. Williams
|
|
Chief Executive Officer (Principal Executive Officer)
|
|
|
|
|
|
/s/ Patrick T. Oakes
|
|
Patrick T. Oakes
|
|
Executive Vice President and
|
|
Chief Financial Officer
|
|
(Principal Financial and Accounting Officer)
|
|
|
|
|
|
|
|
|
|
Date: August 8, 2017
|
|
|
|
|
3.1
|
Amended and Restated Articles of Incorporation of Atlantic Capital Bancshares, Inc., which is incorporated by reference to Exhibit 3.1 to our Registration Statement on Form S-4 (file no. 333-204855), initially filed with the Securities and Exchange Commission on June 10, 2015
|
3.2
|
Amended and Restated Bylaws of Atlantic Capital Bancshares, Inc., which is incorporated by reference to Exhibit 3.1 to our Current Report on Form 8-K (file no. 001-37615), filed with the Securities and Exchange Commission on January 19, 2017
|
10.1
|
Amendment No. 1 to Employment Agreement, dated July 20, 2017, by and among Atlantic Capital Bancshares, Inc., Atlantic Capital Bank, and Douglas L. Williams.*
|
10.2
|
Amendment No. 1 to Employment Agreement, dated July 20, 2017, by and among Atlantic Capital Bancshares, Inc., Atlantic Capital Bank, and D. Michael Kramer.*
|
10.3
|
Atlantic Capital Bancshares, Inc. 2015 Stock Incentive Plan (as amended and restated effective May 18, 2017), which is incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K (file no. 001-37615), initially filed with the Securities and Exchange Commission on May 22, 2017.*
|
10.4
|
Atlantic Capital Bancshares, Inc. Change in Control Plan.*
|
31.1
|
Certification of Chief Executive Officer pursuant to Rule 13a-14(a) under the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
31.2
|
Certification of Chief Financial Officer pursuant to Rule 13a-14(a) under the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
32.1
|
Certification of Chief Executive Officer pursuant to Rule 13a-14(b) under the Exchange Act, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
32.2
|
Certification of Chief Financial Officer pursuant to Rule 13a-14(b) under the Exchange Act, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
101
|
The following materials from our Quarterly Report on Form 10-Q for the quarter ended June 30, 2017, formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets as of June 30, 2017 and December 31, 2016; (ii) the Consolidated Statements of Income for the three and six months ended June 30, 2017 and 2016; (iii) the Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2017 and 2016; (iv) the Consolidated Statements of Shareholders’ Equity for the six months ended June 30, 2017 and 2016; (v) the Consolidated Statements of Cash Flows for the six months ended June 30, 2017 and 2016; and (vi) the Notes to the Unaudited Consolidated Financial Statements
|
ATTEST:
/s/ Patrick T. Oakes
_____________________
Secretary
(CORPORATE SEAL)
ATTEST:
/s/ Patrick T. Oakes
_____________________
Secretary
(BANK SEAL)
/s/ Annette Rollins
_____________________
Witness
|
ATLANTIC CAPITAL BANCSHARES, INC.
By:
/s/ Douglas L. Williams
______________
Name: Douglas L. Williams
Title: Chief Executive Officer
ATLANTIC CAPITAL BANK
By:
/s/ Douglas L. Williams
______________
Name: Douglas L. Williams
Title: Chief Executive Officer
EXECUTIVE
/s/ D. Michael Kramer
___________________
D. Michael Kramer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Atlantic Capital 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 report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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/s/ Douglas L. Williams
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Douglas L. Williams
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Chief Executive Officer
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1.
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I have reviewed this quarterly report on Form 10-Q of Atlantic Capital Bancshares, Inc.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:
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a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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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.
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/s/ Patrick T. Oakes
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Patrick T. Oakes
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|
Executive Vice President, Chief Financial Officer, and Secretary
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|
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(1)
|
the Quarterly Report on Form 10-Q of the Company for the fiscal quarter ended June 30, 2017 (the “Report”), as filed with the Securities and Exchange Commission, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
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|
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(2)
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the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company on the dates and for the periods presented therein.
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||
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August 8, 2017
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/s/ Douglas L. Williams
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Douglas L. Williams
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Chief Executive Officer
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|
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(1)
|
the Quarterly Report on Form 10-Q of the Company for the fiscal quarter ended June 30, 2017 (the “Report”), as filed with the Securities and Exchange Commission, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
|
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(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company on the dates and for the periods presented therein.
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||
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August 8, 2017
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/s/ Patrick T. Oakes
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Patrick T. Oakes
|
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|
Executive Vice President, Chief Financial Officer, and Secretary
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