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FORM 10-Q
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VERITEX HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
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Texas
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27-0973566
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(State or other jurisdiction of
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(I.R.S. employer
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incorporation or organization)
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identification no.)
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8214 Westchester Drive, Suite 400
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Dallas, Texas
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75225
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(Address of principal executive offices)
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(Zip code)
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(972) 349-6200
(Registrant’s telephone number, including area code)
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Page
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June 30,
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December 31,
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||||
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2017
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|
2016
|
||||
ASSETS
|
|
|
|
|
||||
Cash and due from banks
|
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$
|
28,687
|
|
|
$
|
15,631
|
|
Interest bearing deposits in other banks
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|
144,459
|
|
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219,160
|
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||
Total cash and cash equivalents
|
|
173,146
|
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234,791
|
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||
Investment securities
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134,708
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102,559
|
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||
Loans held for sale
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4,118
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5,208
|
|
||
Loans, net of allowance for loan losses of $9,740 and $8,524, respectively
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1,112,688
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983,318
|
|
||
Accrued interest receivable
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3,333
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|
|
2,907
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||
Bank-owned life insurance
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|
20,369
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|
20,077
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||
Bank premises, furniture and equipment, net
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17,978
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|
|
17,413
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|
||
Non-marketable equity securities
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|
7,407
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|
7,366
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||
Investment in unconsolidated subsidiary
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|
93
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93
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||
Other real estate owned
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493
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662
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||
Intangible assets, net of accumulated amortization of $2,544 and $2,198, respectively
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2,171
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2,181
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||
Goodwill
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26,865
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26,865
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||
Other assets
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5,220
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|
|
5,067
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||
Total assets
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$
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1,508,589
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$
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1,408,507
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LIABILITIES AND STOCKHOLDERS’ EQUITY
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||||
Deposits:
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||||
Noninterest-bearing
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$
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337,057
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$
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327,614
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Interest-bearing
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874,050
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792,016
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||
Total deposits
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1,211,107
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1,119,630
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Accounts payable and accrued expenses
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2,574
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2,914
|
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||
Accrued interest payable and other liabilities
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1,032
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|
534
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||
Advances from Federal Home Loan Bank
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38,235
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38,306
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Junior subordinated debentures
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3,093
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3,093
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Subordinated notes
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4,946
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4,942
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Total liabilities
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1,260,987
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1,169,419
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Commitments and contingencies (Note 6)
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||||
Stockholders’ equity:
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||||
Common stock, $0.01 par value; 75,000,000 shares authorized at June 30, 2017 and December 31, 2016; 15,233,010 and 15,195,328 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively (excluding 10,000 shares held in treasury)
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152
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152
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Additional paid-in capital
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211,901
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211,173
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Retained earnings
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36,003
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29,290
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Unallocated Employee Stock Ownership Plan shares; 18,783 and 18,783 shares at June 30, 2017 and December 31, 2016, respectively
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(209
|
)
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(209
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)
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||
Accumulated other comprehensive loss
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(175
|
)
|
|
(1,248
|
)
|
||
Treasury stock, 10,000 shares at cost
|
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(70
|
)
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(70
|
)
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||
Total stockholders’ equity
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247,602
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239,088
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Total liabilities and stockholders’ equity
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$
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1,508,589
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$
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1,408,507
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Three Months Ended
June 30, |
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Six Months Ended
June 30, |
||||||||||||
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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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|
|
|
|
|
|
|
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||||||||
Interest and fees on loans
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$
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13,024
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$
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11,052
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$
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24,907
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$
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21,407
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Interest on investment securities
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735
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344
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1,310
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|
679
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||||
Interest on deposits in other banks
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548
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80
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1,158
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173
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|
||||
Interest on other
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—
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|
1
|
|
|
1
|
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2
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||||
Total interest income
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14,307
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11,477
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27,376
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22,261
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||||
Interest expense:
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|
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||||||||
Interest on deposit accounts
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1,742
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1,072
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3,389
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2,007
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|
||||
Interest on borrowings
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|
189
|
|
|
177
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|
|
358
|
|
|
335
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||||
Total interest expense
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1,931
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1,249
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3,747
|
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2,342
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||||
Net interest income
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12,376
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10,228
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23,629
|
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19,919
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||||
Provision for loan losses
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943
|
|
|
527
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1,833
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1,372
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|
||||
Net interest income after provision for loan losses
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11,433
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9,701
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21,796
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18,547
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|
||||
Noninterest income:
|
|
|
|
|
|
|
|
|
||||||||
Service charges and fees on deposit accounts
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|
555
|
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|
443
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1,064
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|
877
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|
||||
Gain on sales of investment securities
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—
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—
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—
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15
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Gain on sales of loans
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815
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620
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1,562
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1,282
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||||
Loss on sale of other assets owned
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|
(8
|
)
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—
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(8
|
)
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—
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|
||||
Bank-owned life insurance
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|
186
|
|
|
191
|
|
|
373
|
|
|
384
|
|
||||
Other
|
|
218
|
|
|
158
|
|
|
310
|
|
|
227
|
|
||||
Total noninterest income
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|
1,766
|
|
|
1,412
|
|
|
3,301
|
|
|
2,785
|
|
||||
Noninterest expense:
|
|
|
|
|
|
|
|
|
||||||||
Salaries and employee benefits
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3,642
|
|
|
3,589
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|
7,550
|
|
|
6,763
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|
||||
Occupancy and equipment
|
|
1,015
|
|
|
894
|
|
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2,026
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|
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1,795
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|
||||
Professional fees
|
|
1,188
|
|
|
503
|
|
|
1,986
|
|
|
1,076
|
|
||||
Data processing and software expense
|
|
372
|
|
|
270
|
|
|
732
|
|
|
554
|
|
||||
FDIC assessment fees
|
|
393
|
|
|
132
|
|
|
651
|
|
|
269
|
|
||||
Marketing
|
|
225
|
|
|
211
|
|
|
469
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|
|
411
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|
||||
Other assets owned expenses and write-downs
|
|
13
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|
55
|
|
|
38
|
|
|
130
|
|
||||
Amortization of intangibles
|
|
95
|
|
|
95
|
|
|
190
|
|
|
190
|
|
||||
Telephone and communications
|
|
106
|
|
|
100
|
|
|
208
|
|
|
197
|
|
||||
Other
|
|
733
|
|
|
452
|
|
|
1,382
|
|
|
892
|
|
||||
Total noninterest expense
|
|
7,782
|
|
|
6,301
|
|
|
15,232
|
|
|
12,277
|
|
||||
Net income from operations
|
|
5,417
|
|
|
4,812
|
|
|
9,865
|
|
|
9,055
|
|
||||
Income tax expense
|
|
1,802
|
|
|
1,639
|
|
|
3,152
|
|
|
3,069
|
|
||||
Net income
|
|
$
|
3,615
|
|
|
$
|
3,173
|
|
|
$
|
6,713
|
|
|
$
|
5,986
|
|
Basic earnings per share
|
|
$
|
0.24
|
|
|
$
|
0.30
|
|
|
$
|
0.44
|
|
|
$
|
0.56
|
|
Diluted earnings per share
|
|
$
|
0.23
|
|
|
$
|
0.29
|
|
|
$
|
0.43
|
|
|
$
|
0.55
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net income
|
|
$
|
3,615
|
|
|
$
|
3,173
|
|
|
$
|
6,713
|
|
|
$
|
5,986
|
|
Other comprehensive income:
|
|
|
|
|
|
|
|
|
||||||||
Unrealized gains on securities available for sale arising during the period, net
|
|
1,318
|
|
|
305
|
|
|
1,622
|
|
|
663
|
|
||||
Reclassification adjustment for net gains included in net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
||||
Other comprehensive income before tax
|
|
1,318
|
|
|
305
|
|
|
1,622
|
|
|
648
|
|
||||
Income tax expense
|
|
445
|
|
|
104
|
|
|
549
|
|
|
220
|
|
||||
Other comprehensive income, net of tax
|
|
873
|
|
|
201
|
|
|
1,073
|
|
|
428
|
|
||||
Comprehensive income
|
|
$
|
4,488
|
|
|
$
|
3,374
|
|
|
$
|
7,786
|
|
|
$
|
6,414
|
|
|
|
Common Stock
|
|
Additional
Paid-In
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Unallocated
Employee
Stock
Ownership
Plan Shares
|
|
Treasury
Stock
|
|
|
|||||||||||||||||
|
|
Shares
|
|
Amount
|
|
|
|
|
|
|
Total
|
||||||||||||||||||||
Balance at December 31, 2016
|
|
15,195,328
|
|
|
$
|
152
|
|
|
$
|
211,173
|
|
|
$
|
29,290
|
|
|
$
|
(1,248
|
)
|
|
$
|
(209
|
)
|
|
$
|
(70
|
)
|
|
$
|
239,088
|
|
Restricted stock units vested, net 7,103 shares withheld to cover tax withholdings
|
|
22,233
|
|
|
—
|
|
|
(191
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(191
|
)
|
|||||||
Exercise of employee stock options, net 1,095 shares withheld to cover tax withholdings
|
|
15,449
|
|
|
—
|
|
|
144
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
144
|
|
|||||||
Offering costs from sale of common stock
|
|
—
|
|
|
—
|
|
|
(16
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16
|
)
|
|||||||
Stock based compensation
|
|
—
|
|
|
—
|
|
|
791
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
791
|
|
|||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,713
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,713
|
|
|||||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,073
|
|
|
—
|
|
|
—
|
|
|
1,073
|
|
|||||||
Balance at June 30, 2017
|
|
15,233,010
|
|
|
$
|
152
|
|
|
$
|
211,901
|
|
|
$
|
36,003
|
|
|
$
|
(175
|
)
|
|
$
|
(209
|
)
|
|
$
|
(70
|
)
|
|
$
|
247,602
|
|
|
|
Common Stock
|
|
Additional
Paid-In
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
(Loss) Income
|
|
Unallocated
Employee
Stock
Ownership
Plan Shares
|
|
Treasury
Stock
|
|
|
|||||||||||||||||
|
|
Shares
|
|
Amount
|
|
|
|
|
|
|
Total
|
||||||||||||||||||||
Balance at December 31, 2015
|
|
10,712,472
|
|
|
$
|
107
|
|
|
$
|
115,721
|
|
|
$
|
16,739
|
|
|
$
|
(142
|
)
|
|
$
|
(309
|
)
|
|
$
|
(70
|
)
|
|
$
|
132,046
|
|
Restricted stock units vested, net 4,171 shares withheld to cover tax withholdings
|
|
15,391
|
|
|
—
|
|
|
(73
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(73
|
)
|
|||||||
Stock based compensation
|
|
—
|
|
|
—
|
|
|
463
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
463
|
|
|||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,986
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,986
|
|
|||||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
428
|
|
|
—
|
|
|
—
|
|
|
428
|
|
|||||||
Balance at June 30, 2016
|
|
10,727,863
|
|
|
$
|
107
|
|
|
$
|
116,111
|
|
|
$
|
22,725
|
|
|
$
|
286
|
|
|
$
|
(309
|
)
|
|
$
|
(70
|
)
|
|
$
|
138,850
|
|
|
|
For the Six Months Ended June 30,
|
||||||
|
|
2017
|
|
2016
|
||||
Cash flows from operating activities:
|
|
|
|
|
||||
Net income
|
|
$
|
6,713
|
|
|
$
|
5,986
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
||||
Depreciation and amortization
|
|
877
|
|
|
808
|
|
||
Provision for loan losses
|
|
1,833
|
|
|
1,372
|
|
||
Accretion of loan purchase discount
|
|
(190
|
)
|
|
(243
|
)
|
||
Stock-based compensation expense
|
|
791
|
|
|
463
|
|
||
Excess tax benefit from stock compensation
|
|
(214
|
)
|
|
—
|
|
||
Net amortization of premiums on investment securities
|
|
634
|
|
|
431
|
|
||
Change in cash surrender value of bank-owned life insurance
|
|
(292
|
)
|
|
(308
|
)
|
||
Net gain on sales of investment securities
|
|
—
|
|
|
(15
|
)
|
||
Gain on sales of loans held for sale
|
|
(515
|
)
|
|
(775
|
)
|
||
Gain on sales of SBA loans
|
|
(1,047
|
)
|
|
(507
|
)
|
||
Net loss on sales of other real estate owned
|
|
8
|
|
|
—
|
|
||
Amortization of subordinated note discount
|
|
4
|
|
|
1
|
|
||
Net originations of loans held for sale
|
|
(20,336
|
)
|
|
(30,203
|
)
|
||
Write down on foreclosed assets
|
|
—
|
|
|
114
|
|
||
Proceeds from sales of loans held for sale
|
|
21,941
|
|
|
28,823
|
|
||
Deferred tax benefit
|
|
(320
|
)
|
|
—
|
|
||
Increase in accrued interest receivable and other assets
|
|
(876
|
)
|
|
(1,360
|
)
|
||
Increase (decrease) in accounts payable, accrued expenses, accrued interest payable and other liabilities
|
|
158
|
|
|
(378
|
)
|
||
Net cash provided by operating activities
|
|
9,169
|
|
|
4,209
|
|
||
Cash flows from investing activities:
|
|
|
|
|
||||
Purchases of securities available for sale
|
|
(40,354
|
)
|
|
(26,706
|
)
|
||
Sales of securities available for sale
|
|
—
|
|
|
8,378
|
|
||
Proceeds from maturities, calls and pay downs of investment securities
|
|
9,194
|
|
|
10,696
|
|
||
Purchases of non-marketable equity securities, net
|
|
(41
|
)
|
|
(2,868
|
)
|
||
Net loans originated
|
|
(145,758
|
)
|
|
(109,246
|
)
|
||
Proceeds from sale of SBA loans
|
|
15,792
|
|
|
2,397
|
|
||
Net additions to bank premises and equipment
|
|
(1,151
|
)
|
|
(344
|
)
|
||
Purchase of other real estate owned
|
|
(336
|
)
|
|
—
|
|
||
Proceeds from sales of other real estate owned
|
|
497
|
|
|
—
|
|
||
Net cash used in investing activities
|
|
(162,157
|
)
|
|
(117,693
|
)
|
||
Cash flows from financing activities:
|
|
|
|
|
||||
Net change in deposits
|
|
91,477
|
|
|
159,319
|
|
||
Net (decrease) increase in advances from Federal Home Loan Bank
|
|
(71
|
)
|
|
9,931
|
|
||
Proceeds from exercise of employee stock options
|
|
150
|
|
|
—
|
|
||
Costs from issuance of stock related to stock-based awards
|
|
(197
|
)
|
|
(73
|
)
|
||
Offering costs paid in connection with issuance of common stock
|
|
(16
|
)
|
|
—
|
|
||
Net cash provided by financing activities
|
|
91,343
|
|
|
169,177
|
|
||
Net (decrease) increase in cash and cash equivalents
|
|
(61,645
|
)
|
|
55,693
|
|
||
Cash and cash equivalents at beginning of period
|
|
234,791
|
|
|
71,551
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
173,146
|
|
|
$
|
127,244
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Earnings (numerator)
|
|
|
|
|
|
|
|
|
||||||||
Net income
|
|
$
|
3,615
|
|
|
$
|
3,173
|
|
|
$
|
6,713
|
|
|
$
|
5,986
|
|
Shares (denominator)
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding for basic EPS (thousands)
|
|
15,211
|
|
|
10,696
|
|
|
15,205
|
|
|
10,695
|
|
||||
Dilutive effect of employee stock-based awards
|
|
426
|
|
|
298
|
|
|
428
|
|
|
283
|
|
||||
Adjusted weighted average shares outstanding
|
|
15,637
|
|
|
10,994
|
|
|
15,633
|
|
|
10,978
|
|
||||
Earnings per share:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
0.24
|
|
|
$
|
0.30
|
|
|
$
|
0.44
|
|
|
$
|
0.56
|
|
Diluted
|
|
$
|
0.23
|
|
|
$
|
0.29
|
|
|
$
|
0.43
|
|
|
$
|
0.55
|
|
|
|
Six Months Ended June 30,
|
||||||
|
|
2017
|
|
2016
|
||||
Supplemental Disclosures of Cash Flow Information:
|
|
|
|
|
||||
Cash paid for interest
|
|
$
|
3,745
|
|
|
$
|
2,329
|
|
Cash paid for income taxes
|
|
3,500
|
|
|
4,650
|
|
||
Supplemental Disclosures of Non-Cash Flow Information:
|
|
|
|
|
||||
Net foreclosure of other real estate owned and repossessed assets
|
|
$
|
—
|
|
|
$
|
114
|
|
|
|
June 30, 2017
|
||||||||||||||
|
|
Amortized
Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair Value
|
||||||||
Available for Sale
|
|
|
|
|
|
|
|
|
||||||||
U.S. government agencies
|
|
$
|
691
|
|
|
$
|
—
|
|
|
$
|
10
|
|
|
$
|
681
|
|
Corporate securities
|
|
7,500
|
|
|
197
|
|
|
—
|
|
|
$
|
7,697
|
|
|||
Municipal securities
|
|
14,914
|
|
|
42
|
|
|
126
|
|
|
14,830
|
|
||||
Mortgage-backed securities
|
|
65,814
|
|
|
115
|
|
|
340
|
|
|
65,589
|
|
||||
Collateralized mortgage obligations
|
|
45,370
|
|
|
158
|
|
|
316
|
|
|
45,212
|
|
||||
Asset-backed securities
|
|
688
|
|
|
11
|
|
|
—
|
|
|
699
|
|
||||
|
|
$
|
134,977
|
|
|
$
|
523
|
|
|
$
|
792
|
|
|
$
|
134,708
|
|
|
|
December 31, 2016
|
||||||||||||||
|
|
Amortized
Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair Value
|
||||||||
Available for Sale
|
|
|
|
|
|
|
|
|
||||||||
U.S. government agencies
|
|
$
|
732
|
|
|
$
|
—
|
|
|
$
|
36
|
|
|
$
|
696
|
|
Municipal securities
|
|
14,540
|
|
|
2
|
|
|
500
|
|
|
14,042
|
|
||||
Mortgage-backed securities
|
|
49,907
|
|
|
83
|
|
|
871
|
|
|
49,119
|
|
||||
Collateralized mortgage obligations
|
|
38,507
|
|
|
32
|
|
|
612
|
|
|
37,927
|
|
||||
Asset-backed securities
|
|
764
|
|
|
11
|
|
|
—
|
|
|
775
|
|
||||
|
|
$
|
104,450
|
|
|
$
|
128
|
|
|
$
|
2,019
|
|
|
$
|
102,559
|
|
|
|
June 30, 2017
|
||||||||||||||||||||||
|
|
Less Than 12 Months
|
|
12 Months or More
|
|
Totals
|
||||||||||||||||||
|
|
Fair
Value |
|
Unrealized
Loss |
|
Fair
Value |
|
Unrealized
Loss |
|
Fair
Value |
|
Unrealized
Loss |
||||||||||||
Available for Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government agencies
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
681
|
|
|
$
|
10
|
|
|
$
|
681
|
|
|
$
|
10
|
|
Municipal securities
|
|
7,052
|
|
|
107
|
|
|
1,346
|
|
|
19
|
|
|
8,398
|
|
|
126
|
|
||||||
Mortgage-backed securities
|
|
42,127
|
|
|
289
|
|
|
3,937
|
|
|
51
|
|
|
46,064
|
|
|
340
|
|
||||||
Collateralized mortgage obligations
|
|
28,283
|
|
|
293
|
|
|
1,473
|
|
|
23
|
|
|
29,756
|
|
|
316
|
|
||||||
|
|
$
|
77,462
|
|
|
$
|
689
|
|
|
$
|
7,437
|
|
|
$
|
103
|
|
|
$
|
84,899
|
|
|
$
|
792
|
|
|
|
December 31, 2016
|
||||||||||||||||||||||
|
|
Less Than 12 Months
|
|
12 Months or More
|
|
Totals
|
||||||||||||||||||
|
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
||||||||||||
|
|
Value
|
|
Loss
|
|
Value
|
|
Loss
|
|
Value
|
|
Loss
|
||||||||||||
Available for Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government agencies
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
696
|
|
|
$
|
36
|
|
|
$
|
696
|
|
|
$
|
36
|
|
Municipal securities
|
|
12,060
|
|
|
478
|
|
|
518
|
|
|
22
|
|
|
12,578
|
|
|
500
|
|
||||||
Mortgage-backed securities
|
|
37,274
|
|
|
802
|
|
|
6,848
|
|
|
69
|
|
|
44,122
|
|
|
871
|
|
||||||
Collateralized mortgage obligations
|
|
29,618
|
|
|
584
|
|
|
1,618
|
|
|
28
|
|
|
31,236
|
|
|
612
|
|
||||||
|
|
$
|
78,952
|
|
|
$
|
1,864
|
|
|
$
|
9,680
|
|
|
$
|
155
|
|
|
$
|
88,632
|
|
|
$
|
2,019
|
|
|
|
June 30, 2017
|
||||||
|
|
Available For Sale
|
||||||
|
|
Amortized
Cost |
|
Fair
Value |
||||
Due in one year or less
|
|
$
|
—
|
|
|
$
|
—
|
|
Due from one year to five years
|
|
3,928
|
|
|
3,952
|
|
||
Due from five years to ten years
|
|
4,504
|
|
|
4,435
|
|
||
Due after ten years
|
|
7,173
|
|
|
7,124
|
|
||
|
|
15,605
|
|
|
15,511
|
|
||
Corporate securities
|
|
7,500
|
|
|
7,697
|
|
||
Mortgage-backed securities
|
|
65,814
|
|
|
65,589
|
|
||
Collateralized mortgage obligations
|
|
45,370
|
|
|
45,212
|
|
||
Asset-backed securities
|
|
688
|
|
|
699
|
|
||
|
|
$
|
134,977
|
|
|
$
|
134,708
|
|
|
|
December 31, 2016
|
||||||
|
|
Available For Sale
|
||||||
|
|
Amortized
Cost |
|
Fair
Value |
||||
Due in one year or less
|
|
$
|
—
|
|
|
$
|
—
|
|
Due from one year to five years
|
|
4,009
|
|
|
3,974
|
|
||
Due from five years to ten years
|
|
3,522
|
|
|
3,346
|
|
||
Due after ten years
|
|
7,741
|
|
|
7,418
|
|
||
|
|
15,272
|
|
|
14,738
|
|
||
Mortgage-backed securities
|
|
49,907
|
|
|
49,119
|
|
||
Collateralized mortgage obligations
|
|
38,507
|
|
|
37,927
|
|
||
Asset-backed securities
|
|
764
|
|
|
775
|
|
||
|
|
$
|
104,450
|
|
|
$
|
102,559
|
|
|
|
Six Months Ended June 30,
|
||||||
|
|
2017
|
|
2016
|
||||
Proceeds from sales
|
|
$
|
—
|
|
|
$
|
8,378
|
|
Gross realized gains
|
|
—
|
|
|
43
|
|
||
Gross realized losses
|
|
—
|
|
|
40
|
|
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
Real estate:
|
|
|
|
|
||||
Construction and land
|
|
$
|
136,332
|
|
|
$
|
162,614
|
|
Farmland
|
|
8,448
|
|
|
8,262
|
|
||
1 - 4 family residential
|
|
157,823
|
|
|
140,137
|
|
||
Multi-family residential
|
|
38,265
|
|
|
14,683
|
|
||
Commercial Real Estate
|
|
430,895
|
|
|
370,696
|
|
||
Commercial
|
|
347,017
|
|
|
291,416
|
|
||
Consumer
|
|
3,688
|
|
|
4,089
|
|
||
|
|
1,122,468
|
|
|
991,897
|
|
||
Deferred loan fees
|
|
(40
|
)
|
|
(55
|
)
|
||
Allowance for loan losses
|
|
(9,740
|
)
|
|
(8,524
|
)
|
||
|
|
$
|
1,112,688
|
|
|
$
|
983,318
|
|
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
Real estate:
|
|
|
|
|
||||
Construction and land
|
|
$
|
—
|
|
|
$
|
—
|
|
Farmland
|
|
—
|
|
|
—
|
|
||
1 - 4 family residential
|
|
—
|
|
|
—
|
|
||
Multi-family residential
|
|
—
|
|
|
—
|
|
||
Commercial Real Estate
|
|
727
|
|
|
—
|
|
||
Commercial
|
|
778
|
|
|
930
|
|
||
Consumer
|
|
9
|
|
|
11
|
|
||
|
|
$
|
1,514
|
|
|
$
|
941
|
|
|
|
June 30, 2017
|
||||||||||||||||||||||||||
|
|
30 to 59 Days
|
|
60 to 89 Days
|
|
90 Days or Greater
|
|
Total Past Due
|
|
Total Current
|
|
Total
Loans |
|
Total 90 Days Past Due and Still Accruing
|
||||||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction and land
|
|
$
|
492
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
492
|
|
|
$
|
135,840
|
|
|
$
|
136,332
|
|
|
$
|
—
|
|
Farmland
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,448
|
|
|
8,448
|
|
|
—
|
|
|||||||
1 - 4 family residential
|
|
815
|
|
|
—
|
|
|
—
|
|
|
815
|
|
|
157,008
|
|
|
157,823
|
|
|
—
|
|
|||||||
Multi-family residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38,265
|
|
|
38,265
|
|
|
—
|
|
|||||||
Commercial Real Estate
|
|
—
|
|
|
—
|
|
|
727
|
|
|
727
|
|
|
430,168
|
|
|
430,895
|
|
|
—
|
|
|||||||
Commercial
|
|
137
|
|
|
392
|
|
|
781
|
|
|
1,310
|
|
|
345,707
|
|
|
347,017
|
|
|
15
|
|
|||||||
Consumer
|
|
9
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
3,679
|
|
|
3,688
|
|
|
—
|
|
|||||||
|
|
$
|
1,453
|
|
|
$
|
392
|
|
|
$
|
1,508
|
|
|
$
|
3,353
|
|
|
$
|
1,119,115
|
|
|
$
|
1,122,468
|
|
|
$
|
15
|
|
|
|
December 31, 2016
|
||||||||||||||||||||||||||
|
|
30 to 59 Days
|
|
60 to 89 Days
|
|
90 Days or Greater
|
|
Total Past Due
|
|
Total Current
|
|
Total
Loans |
|
Total 90 Days Past Due and Still Accruing
|
||||||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction and land
|
|
$
|
1,047
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,047
|
|
|
$
|
161,567
|
|
|
$
|
162,614
|
|
|
$
|
—
|
|
Farmland
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,262
|
|
|
8,262
|
|
|
—
|
|
|||||||
1 - 4 family residential
|
|
510
|
|
|
214
|
|
|
—
|
|
|
724
|
|
|
139,413
|
|
|
140,137
|
|
|
—
|
|
|||||||
Multi-family residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,683
|
|
|
14,683
|
|
|
—
|
|
|||||||
Commercial Real Estate
|
|
—
|
|
|
—
|
|
|
754
|
|
|
754
|
|
|
369,942
|
|
|
370,696
|
|
|
754
|
|
|||||||
Commercial
|
|
1,344
|
|
|
438
|
|
|
532
|
|
|
2,314
|
|
|
289,102
|
|
|
291,416
|
|
|
81
|
|
|||||||
Consumer
|
|
41
|
|
|
—
|
|
|
—
|
|
|
41
|
|
|
4,048
|
|
|
4,089
|
|
|
—
|
|
|||||||
|
|
$
|
2,942
|
|
|
$
|
652
|
|
|
$
|
1,286
|
|
|
$
|
4,880
|
|
|
$
|
987,017
|
|
|
$
|
991,897
|
|
|
$
|
835
|
|
|
|
June 30, 2017
|
||||||||||||||||||||||
|
|
Unpaid
Contractual Principal Balance |
|
Recorded
Investment with No Allowance |
|
Recorded
Investment With Allowance |
|
Total
Recorded Investment |
|
Related
Allowance |
|
Average
Recorded Investment YTD |
||||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction and land
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Farmland
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
1 - 4 family residential
|
|
163
|
|
|
163
|
|
|
—
|
|
|
163
|
|
|
—
|
|
|
212
|
|
||||||
Multi-family residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Commercial Real Estate
|
|
1,104
|
|
|
1,104
|
|
|
—
|
|
|
1,104
|
|
|
—
|
|
|
1,140
|
|
||||||
Commercial
|
|
793
|
|
|
540
|
|
|
253
|
|
|
793
|
|
|
137
|
|
|
886
|
|
||||||
Consumer
|
|
86
|
|
|
77
|
|
|
9
|
|
|
86
|
|
|
1
|
|
|
89
|
|
||||||
Total
|
|
$
|
2,146
|
|
|
$
|
1,884
|
|
|
$
|
262
|
|
|
$
|
2,146
|
|
|
$
|
138
|
|
|
$
|
2,327
|
|
|
|
December 31, 2016
|
||||||||||||||||||||||
|
|
Unpaid
Contractual Principal Balance |
|
Recorded
Investment with No Allowance |
|
Recorded
Investment With Allowance |
|
Total
Recorded Investment |
|
Related
Allowance |
|
Average
Recorded Investment YTD |
||||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction and land
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Farmland
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
1 - 4 family residential
|
|
164
|
|
|
164
|
|
|
—
|
|
|
164
|
|
|
—
|
|
|
265
|
|
||||||
Multi-family residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Commercial Real Estate
|
|
382
|
|
|
382
|
|
|
—
|
|
|
382
|
|
|
—
|
|
|
440
|
|
||||||
Commercial
|
|
955
|
|
|
381
|
|
|
574
|
|
|
955
|
|
|
246
|
|
|
463
|
|
||||||
Consumer
|
|
92
|
|
|
81
|
|
|
11
|
|
|
92
|
|
|
4
|
|
|
12
|
|
||||||
Total
|
|
$
|
1,593
|
|
|
$
|
1,008
|
|
|
$
|
585
|
|
|
$
|
1,593
|
|
|
$
|
250
|
|
|
$
|
1,180
|
|
|
|
June 30, 2017
|
||||||||||||||||||
|
|
Pass
|
|
Special
Mention |
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction and land
|
|
$
|
136,332
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
136,332
|
|
Farmland
|
|
8,448
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,448
|
|
|||||
1 - 4 family residential
|
|
157,564
|
|
|
—
|
|
|
259
|
|
|
—
|
|
|
157,823
|
|
|||||
Multi-family residential
|
|
38,265
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38,265
|
|
|||||
Commercial Real Estate
|
|
424,247
|
|
|
5,358
|
|
|
1,290
|
|
|
—
|
|
|
430,895
|
|
|||||
Commercial
|
|
338,701
|
|
|
6,990
|
|
|
1,210
|
|
|
116
|
|
|
347,017
|
|
|||||
Consumer
|
|
3,672
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
3,688
|
|
|||||
Total
|
|
$
|
1,107,229
|
|
|
$
|
12,348
|
|
|
$
|
2,775
|
|
|
$
|
116
|
|
|
$
|
1,122,468
|
|
|
|
December 31, 2016
|
||||||||||||||||||
|
|
Pass
|
|
Special
Mention |
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction and land
|
|
$
|
162,614
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
162,614
|
|
Farmland
|
|
8,262
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,262
|
|
|||||
1 - 4 family residential
|
|
139,212
|
|
|
710
|
|
|
215
|
|
|
—
|
|
|
140,137
|
|
|||||
Multi-family residential
|
|
14,683
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,683
|
|
|||||
Commercial Real Estate
|
|
368,370
|
|
|
2,326
|
|
|
—
|
|
|
—
|
|
|
370,696
|
|
|||||
Commercial
|
|
289,589
|
|
|
686
|
|
|
1,034
|
|
|
107
|
|
|
291,416
|
|
|||||
Consumer
|
|
4,078
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
4,089
|
|
|||||
Total
|
|
$
|
986,808
|
|
|
$
|
3,722
|
|
|
$
|
1,260
|
|
|
$
|
107
|
|
|
$
|
991,897
|
|
|
|
Six Months Ended June 30, 2017
|
|
Year Ended December 31, 2016
|
|
Six Months Ended June 30, 2016
|
||||||
Balance at beginning of year
|
|
$
|
8,524
|
|
|
$
|
6,772
|
|
|
$
|
6,772
|
|
Provision charged to earnings
|
|
1,833
|
|
|
2,050
|
|
|
1,372
|
|
|||
Charge-offs
|
|
(622
|
)
|
|
(333
|
)
|
|
(249
|
)
|
|||
Recoveries
|
|
5
|
|
|
35
|
|
|
15
|
|
|||
Net charge-offs
|
|
(617
|
)
|
|
(298
|
)
|
|
(234
|
)
|
|||
Balance at end of year
|
|
$
|
9,740
|
|
|
$
|
8,524
|
|
|
$
|
7,910
|
|
|
|
For the Six Months Ended June 30, 2017
|
||||||||||||||||||||||
|
|
Real Estate
|
|
|
|
|
|
|
||||||||||||||||
|
|
Construction,
Land and Farmland |
|
Residential
|
|
Commercial Real Estate
|
|
Commercial
|
|
Consumer
|
|
Total
|
||||||||||||
Balance at beginning of period
|
|
$
|
1,415
|
|
|
$
|
1,116
|
|
|
$
|
3,003
|
|
|
$
|
2,955
|
|
|
$
|
35
|
|
|
$
|
8,524
|
|
Provision (recapture) charged to earnings
|
|
(291
|
)
|
|
370
|
|
|
554
|
|
|
1,205
|
|
|
(5
|
)
|
|
1,833
|
|
||||||
Charge-offs
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
(611
|
)
|
|
—
|
|
|
(622
|
)
|
||||||
Recoveries
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
||||||
Net charge-offs (recoveries)
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
(606
|
)
|
|
—
|
|
|
(617
|
)
|
||||||
Balance at end of period
|
|
$
|
1,124
|
|
|
$
|
1,475
|
|
|
$
|
3,557
|
|
|
$
|
3,554
|
|
|
$
|
30
|
|
|
$
|
9,740
|
|
Period-end amount allocated to:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Specific reserves:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Impaired loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
137
|
|
|
$
|
1
|
|
|
$
|
138
|
|
Total specific reserves
|
|
—
|
|
|
—
|
|
|
—
|
|
|
137
|
|
|
1
|
|
|
138
|
|
||||||
General reserves
|
|
1,124
|
|
|
1,475
|
|
|
3,557
|
|
|
3,417
|
|
|
29
|
|
|
9,602
|
|
||||||
Total
|
|
$
|
1,124
|
|
|
$
|
1,475
|
|
|
$
|
3,557
|
|
|
$
|
3,554
|
|
|
$
|
30
|
|
|
$
|
9,740
|
|
|
|
For the Year Ended December 31, 2016
|
||||||||||||||||||||||
|
|
Real Estate
|
|
|
|
|
|
|
||||||||||||||||
|
|
Construction,
Land and Farmland |
|
Residential
|
|
Commercial Real Estate
|
|
Commercial
|
|
Consumer
|
|
Total
|
||||||||||||
Balance at beginning of period
|
|
$
|
1,104
|
|
|
$
|
1,124
|
|
|
$
|
2,189
|
|
|
$
|
2,324
|
|
|
$
|
31
|
|
|
$
|
6,772
|
|
Provision (recapture) charged to earnings
|
|
311
|
|
|
(8
|
)
|
|
814
|
|
|
913
|
|
|
20
|
|
|
2,050
|
|
||||||
Charge-offs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(314
|
)
|
|
(19
|
)
|
|
(333
|
)
|
||||||
Recoveries
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32
|
|
|
3
|
|
|
35
|
|
||||||
Net charge-offs (recoveries)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(282
|
)
|
|
(16
|
)
|
|
(298
|
)
|
||||||
Balance at end of period
|
|
$
|
1,415
|
|
|
$
|
1,116
|
|
|
$
|
3,003
|
|
|
$
|
2,955
|
|
|
$
|
35
|
|
|
$
|
8,524
|
|
Period-end amount allocated to:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Specific reserves:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Impaired loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
246
|
|
|
$
|
4
|
|
|
$
|
250
|
|
Total specific reserves
|
|
—
|
|
|
—
|
|
|
—
|
|
|
246
|
|
|
4
|
|
|
250
|
|
||||||
General reserves
|
|
1,415
|
|
|
1,116
|
|
|
3,003
|
|
|
2,709
|
|
|
31
|
|
|
8,274
|
|
||||||
Total
|
|
$
|
1,415
|
|
|
$
|
1,116
|
|
|
$
|
3,003
|
|
|
$
|
2,955
|
|
|
$
|
35
|
|
|
$
|
8,524
|
|
|
|
For the Six Months Ended June 30, 2016
|
||||||||||||||||||||||
|
|
Real Estate
|
|
|
|
|
|
|
||||||||||||||||
|
|
Construction,
Land and Farmland |
|
Residential
|
|
Commercial Real Estate
|
|
Commercial
|
|
Consumer
|
|
Total
|
||||||||||||
Balance at beginning of year
|
|
$
|
1,104
|
|
|
$
|
1,124
|
|
|
$
|
2,189
|
|
|
$
|
2,324
|
|
|
$
|
31
|
|
|
$
|
6,772
|
|
Provision (recapture) charged to earnings
|
|
286
|
|
|
67
|
|
|
397
|
|
|
618
|
|
|
4
|
|
|
1,372
|
|
||||||
Charge-offs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(240
|
)
|
|
(9
|
)
|
|
(249
|
)
|
||||||
Recoveries
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
1
|
|
|
15
|
|
||||||
Net charge-offs (recoveries)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(226
|
)
|
|
(8
|
)
|
|
(234
|
)
|
||||||
Balance at end of year
|
|
$
|
1,390
|
|
|
$
|
1,191
|
|
|
$
|
2,586
|
|
|
$
|
2,716
|
|
|
$
|
27
|
|
|
$
|
7,910
|
|
Period-end amount allocated to:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Specific reserves:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Impaired loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
80
|
|
|
$
|
4
|
|
|
$
|
84
|
|
Total specific reserves
|
|
—
|
|
|
—
|
|
|
—
|
|
|
80
|
|
|
4
|
|
|
84
|
|
||||||
General reserves
|
|
1,390
|
|
|
1,191
|
|
|
2,586
|
|
|
2,636
|
|
|
23
|
|
|
7,826
|
|
||||||
Total
|
|
$
|
1,390
|
|
|
$
|
1,191
|
|
|
$
|
2,586
|
|
|
$
|
2,716
|
|
|
$
|
27
|
|
|
$
|
7,910
|
|
|
|
June 30, 2017
|
||||||||||||||||||||||
|
|
Real Estate
|
|
|
|
|
|
|
||||||||||||||||
|
|
Construction,
Land and Farmland |
|
Residential
|
|
Commercial Real Estate
|
|
Commercial
|
|
Consumer
|
|
Total
|
||||||||||||
Loans individually evaluated for impairment
|
|
$
|
—
|
|
|
$
|
163
|
|
|
$
|
1,104
|
|
|
$
|
793
|
|
|
$
|
86
|
|
|
$
|
2,146
|
|
Loans collectively evaluated for impairment
|
|
144,780
|
|
|
195,925
|
|
|
429,791
|
|
|
346,224
|
|
|
3,602
|
|
|
1,120,322
|
|
||||||
Total
|
|
$
|
144,780
|
|
|
$
|
196,088
|
|
|
$
|
430,895
|
|
|
$
|
347,017
|
|
|
$
|
3,688
|
|
|
$
|
1,122,468
|
|
|
|
December 31, 2016
|
||||||||||||||||||||||
|
|
Real Estate
|
|
|
|
|
|
|
||||||||||||||||
|
|
Construction,
Land and Farmland |
|
Residential
|
|
Commercial Real Estate
|
|
Commercial
|
|
Consumer
|
|
Total
|
||||||||||||
Loans individually evaluated for impairment
|
|
$
|
—
|
|
|
$
|
164
|
|
|
$
|
382
|
|
|
$
|
955
|
|
|
$
|
92
|
|
|
$
|
1,593
|
|
Loans collectively evaluated for impairment
|
|
170,876
|
|
|
154,656
|
|
|
370,314
|
|
|
290,461
|
|
|
3,997
|
|
|
990,304
|
|
||||||
Total
|
|
$
|
170,876
|
|
|
$
|
154,820
|
|
|
$
|
370,696
|
|
|
$
|
291,416
|
|
|
$
|
4,089
|
|
|
$
|
991,897
|
|
|
|
Six Months Ended June 30,
|
||||||
|
|
2017
|
|
2016
|
||||
Balance at beginning of year
|
|
$
|
601
|
|
|
$
|
426
|
|
Increase from loan sales
|
|
281
|
|
|
111
|
|
||
Amortization charged to income
|
|
(88
|
)
|
|
(55
|
)
|
||
Balance at end of period
|
|
$
|
794
|
|
|
$
|
482
|
|
|
|
Fair Value
Measurements Using |
|
|
||||||||||||
|
|
Level 1
Inputs |
|
Level 2
Inputs |
|
Level 3
Inputs |
|
Total
Fair Value |
||||||||
As of June 30, 2017
|
|
|
|
|
|
|
|
|
||||||||
Investment securities available for sale
|
|
$
|
—
|
|
|
$
|
134,708
|
|
|
$
|
—
|
|
|
$
|
134,708
|
|
As of December 31, 2016
|
|
|
|
|
|
|
|
|
||||||||
Investment securities available for sale
|
|
$
|
—
|
|
|
$
|
102,559
|
|
|
$
|
—
|
|
|
$
|
102,559
|
|
|
|
Fair Value
Measurements Using |
|
|
||||||||||||
|
|
Level 1
Inputs |
|
Level 2
Inputs |
|
Level 3
Inputs |
|
Total
Fair Value |
||||||||
As of June 30, 2017
|
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Impaired loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,008
|
|
|
$
|
2,008
|
|
As of December 31, 2016
|
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Impaired loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,343
|
|
|
$
|
1,343
|
|
June 30, 2017
|
|||||||||||
|
|
|
|
Valuation
|
|
Unobservable
|
|
Weighted
|
|||
Assets/Liabilities
|
|
Fair Value
|
|
Technique
|
|
Input(s)
|
|
Average
|
|||
Impaired loans
|
|
$
|
2,008
|
|
|
Collateral Method
|
|
Adjustments for selling costs
|
|
8
|
%
|
December 31, 2016
|
|||||||||||
|
|
|
|
Valuation
|
|
Unobservable
|
|
Weighted
|
|||
Assets/Liabilities
|
|
Fair Value
|
|
Technique
|
|
Input(s)
|
|
Average
|
|||
Impaired loans
|
|
$
|
1,343
|
|
|
Collateral Method
|
|
Adjustments for selling costs
|
|
8
|
%
|
|
|
June 30,
|
|
December 31,
|
||||||||||||
|
|
2017
|
|
2016
|
||||||||||||
|
|
Carrying
Amount |
|
Fair
Value |
|
Carrying
Amount |
|
Fair
Value |
||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
||||||||
Level 1 inputs:
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
|
$
|
173,146
|
|
|
$
|
173,146
|
|
|
$
|
234,791
|
|
|
$
|
234,791
|
|
Level 2 inputs:
|
|
|
|
|
|
|
|
|
||||||||
Investment securities
|
|
134,708
|
|
|
134,708
|
|
|
102,559
|
|
|
102,559
|
|
||||
Loans held for sale
|
|
4,118
|
|
|
4,118
|
|
|
5,208
|
|
|
5,208
|
|
||||
Accrued interest receivable
|
|
3,333
|
|
|
3,333
|
|
|
2,907
|
|
|
2,907
|
|
||||
Bank-owned life insurance
|
|
20,369
|
|
|
20,369
|
|
|
20,077
|
|
|
20,077
|
|
||||
Servicing asset
|
|
794
|
|
|
794
|
|
|
601
|
|
|
601
|
|
||||
Non-marketable equity securities
|
|
7,407
|
|
|
7,407
|
|
|
7,366
|
|
|
7,366
|
|
||||
Level 3 inputs:
|
|
|
|
|
|
|
|
|
||||||||
Loans, net
|
|
1,112,688
|
|
|
1,120,692
|
|
|
983,318
|
|
|
987,021
|
|
||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Level 2 inputs:
|
|
|
|
|
|
|
|
|
||||||||
Deposits
|
|
$
|
1,211,107
|
|
|
$
|
1,158,631
|
|
|
$
|
1,119,630
|
|
|
$
|
1,085,888
|
|
Advances from FHLB
|
|
38,235
|
|
|
38,280
|
|
|
38,306
|
|
|
38,570
|
|
||||
Accrued interest payable
|
|
125
|
|
|
125
|
|
|
141
|
|
|
141
|
|
||||
Junior subordinated debentures
|
|
3,093
|
|
|
3,093
|
|
|
3,093
|
|
|
3,093
|
|
||||
Subordinated notes
|
|
4,946
|
|
|
4,946
|
|
|
4,942
|
|
|
4,942
|
|
|
|
June 30,
|
|
December 31,
|
||||
|
|
2017
|
|
2016
|
||||
Commitments to extend credit
|
|
$
|
269,863
|
|
|
$
|
236,919
|
|
Standby and commercial letters of credit
|
|
5,936
|
|
|
6,933
|
|
||
|
|
$
|
275,799
|
|
|
$
|
243,852
|
|
|
|
June 30,
|
|
December 31,
|
||||
|
|
2017
|
|
2016
|
||||
Allocated shares
|
|
44,257
|
|
|
44,257
|
|
||
Unearned shares
|
|
18,783
|
|
|
18,783
|
|
||
Total ESOP shares
|
|
63,040
|
|
|
63,040
|
|
||
Fair value of unearned shares
|
|
$
|
495
|
|
|
$
|
502
|
|
|
|
For the Six Months Ended June 30, 2017
|
|||||||
|
|
Non-performance-based Stock Options
|
|||||||
|
|
Shares
Underlying
Options
|
|
Weighted
Exercise
Price
|
|
Weighted
Average
Contractual
Term
|
|||
Outstanding at beginning of year
|
|
325,500
|
|
|
$
|
10.15
|
|
|
4.56 years
|
Granted during the period
|
|
—
|
|
|
—
|
|
|
|
|
Forfeited during the period
|
|
—
|
|
|
—
|
|
|
|
|
Canceled during the period
|
|
—
|
|
|
—
|
|
|
|
|
Exercised during the period
|
|
(15,000
|
)
|
|
10.00
|
|
|
|
|
Outstanding at the end of period
|
|
310,500
|
|
|
$
|
10.16
|
|
|
4.09 years
|
Options exercisable at end of period
|
|
297,000
|
|
|
$
|
10.12
|
|
|
4.00 years
|
Weighted average fair value of options granted during the period
|
|
|
|
$
|
—
|
|
|
|
|
|
For the Six Months Ended June 30, 2016
|
|||||||
|
|
Non-performance-based Stock Options
|
|||||||
|
|
Shares
Underlying
Options
|
|
Weighted
Exercise
Price
|
|
Weighted
Average
Contractual
Term
|
|||
Outstanding at beginning of year
|
|
325,500
|
|
|
$
|
10.15
|
|
|
5.56 years
|
Granted during the period
|
|
—
|
|
|
—
|
|
|
|
|
Forfeited during the period
|
|
—
|
|
|
—
|
|
|
|
|
Exercised during the period
|
|
—
|
|
|
—
|
|
|
|
|
Outstanding at the end of period
|
|
325,500
|
|
|
$
|
10.15
|
|
|
5.06 years
|
Options exercisable at end of period
|
|
298,200
|
|
|
$
|
10.09
|
|
|
4.91 years
|
Weighted average fair value of options granted during the period
|
|
|
|
|
$
|
—
|
|
|
|
|
|
2017
|
|
2016
|
||||||||||
|
|
Shares
|
|
Weighted
Average
Grant Date
Fair Value
|
|
Shares
|
|
Weighted
Average Grant Date Fair Value |
||||||
Nonvested at January 1,
|
|
27,750
|
|
|
$
|
11.92
|
|
|
39,750
|
|
|
$
|
11.34
|
|
Granted during the period
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Vested during the period
|
|
(1,000
|
)
|
|
10.85
|
|
|
(6,000
|
)
|
|
10.00
|
|
||
Forfeited during the period
|
|
(500
|
)
|
|
10.85
|
|
|
—
|
|
|
—
|
|
||
Nonvested at June 30,
|
|
26,250
|
|
|
$
|
11.98
|
|
|
33,750
|
|
|
$
|
11.58
|
|
|
|
For the Six Months Ended June 30,
|
||
|
|
2017
|
|
2016
|
Dividend yield
|
|
0.00%
|
|
0.00%
|
Expected life
|
|
5.0 to 7.5 years
|
|
5.0 to 6.5 years
|
Expected volatility
|
|
32.10% to 37.55%
|
|
35.23% to 37.55%
|
Risk-free interest rate
|
|
1.06% to 2.32%
|
|
1.26% to 2.01%
|
|
|
2017
|
|
2016
|
||||||||||||||
|
|
Non-performance-based Stock Options
|
|
Non-performance-based Stock Options
|
||||||||||||||
|
|
Shares
Underlying Options |
|
Weighted
Exercise Price |
|
Weighted
Average Contractual Term |
|
Shares
Underlying Options |
|
Weighted
Average Exercise Price |
|
Weighted
Average Contractual Term |
||||||
Outstanding at beginning of year
|
|
128,366
|
|
|
$
|
15.32
|
|
|
8.69 years
|
|
52,080
|
|
|
$
|
14.35
|
|
|
9.12 years
|
Granted during the period
|
|
65,440
|
|
|
26.89
|
|
|
|
|
71,286
|
|
|
15.88
|
|
|
|
||
Forfeited during the period
|
|
(3,465
|
)
|
|
21.24
|
|
|
|
|
—
|
|
|
—
|
|
|
|
||
Canceled during the period
|
|
—
|
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
|
||
Exercised during the period
|
|
(1,544
|
)
|
|
15.00
|
|
|
|
|
—
|
|
|
—
|
|
|
|
||
Outstanding at the end of period
|
|
188,797
|
|
|
$
|
19.22
|
|
|
8.63 years
|
|
123,366
|
|
|
$
|
15.23
|
|
|
9.16 years
|
Options exercisable at end of period
|
|
51,204
|
|
|
$
|
14.96
|
|
|
7.93 years
|
|
14,693
|
|
|
$
|
14.17
|
|
|
8.51 years
|
Weighted average fair value of options granted during the period
|
|
|
|
$
|
10.22
|
|
|
|
|
|
|
$
|
6.09
|
|
|
|
|
|
2017
|
|
2016
|
||||||||||
|
|
Non-performance Based
|
|
Non-performance Based
|
||||||||||
|
|
Restricted Stock Units
|
|
Restricted Stock Units
|
||||||||||
|
|
Units
|
|
Weighted
Average
Grant Date
Fair Value
|
|
Units
|
|
Weighted
Average Grant Date Fair Value |
||||||
Nonvested at January 1,
|
|
67,956
|
|
|
$
|
13.79
|
|
|
70,919
|
|
|
$
|
13.29
|
|
Granted during the period
|
|
31,375
|
|
|
27.49
|
|
|
22,060
|
|
|
15.63
|
|
||
Vested during the period
|
|
(8,475
|
)
|
|
25.42
|
|
|
(5,476
|
)
|
|
16.07
|
|
||
Forfeited during the period
|
|
(2,250
|
)
|
|
27.93
|
|
|
—
|
|
|
—
|
|
||
Nonvested at June 30,
|
|
88,606
|
|
|
$
|
17.17
|
|
|
87,503
|
|
|
$
|
13.70
|
|
|
|
2017
|
|
2016
|
||||||||||
|
|
Performance Based
|
|
Performance Based
|
||||||||||
|
|
Restricted Stock Units
|
|
Restricted Stock Units
|
||||||||||
|
|
Units
|
|
Weighted
Average
Grant Date
Fair Value
|
|
Units
|
|
Weighted
Average Grant Date Fair Value |
||||||
Nonvested at January 1,
|
|
51,197
|
|
|
$
|
8.72
|
|
|
25,474
|
|
|
$
|
9.45
|
|
Granted during the period
|
|
25,522
|
|
|
24.34
|
|
|
34,190
|
|
|
9.52
|
|
||
Vested during the period
|
|
(19,861
|
)
|
|
15.34
|
|
|
(8,467
|
)
|
|
14.17
|
|
||
Forfeited during the period
|
|
(2,014
|
)
|
|
15.68
|
|
|
—
|
|
|
—
|
|
||
Nonvested at June 30,
|
|
54,844
|
|
|
$
|
13.33
|
|
|
51,197
|
|
|
$
|
8.72
|
|
|
|
Actual
|
|
|
|
For Capital
Adequacy Purposes
|
|
|
|
To Be Well
Capitalized Under
Prompt Corrective
Action Provisions
|
|||||||||||||||||||
|
|
Amount
|
|
Ratio
|
|
|
|
Amount
|
|
|
|
Ratio
|
|
|
|
Amount
|
|
|
|
Ratio
|
|||||||||
As of June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total capital (to risk-weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
|
$
|
236,955
|
|
|
18.92
|
%
|
|
|
|
$
|
100,192
|
|
|
|
|
8.0
|
%
|
|
|
|
n/a
|
|
|
|
|
n/a
|
|
|
Bank
|
|
139,381
|
|
|
11.14
|
%
|
|
|
|
100,094
|
|
|
|
|
8.0
|
%
|
|
|
|
$
|
125,118
|
|
|
|
|
10.0
|
%
|
||
Tier 1 capital (to risk-weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
|
222,269
|
|
|
17.75
|
%
|
|
|
|
75,133
|
|
|
|
|
6.0
|
%
|
|
|
|
n/a
|
|
|
|
|
n/a
|
|
|||
Bank
|
|
129,642
|
|
|
10.36
|
%
|
|
|
|
75,082
|
|
|
|
|
6.0
|
%
|
|
|
|
100,110
|
|
|
|
|
8.0
|
|
|||
Common equity tier 1 to risk-weighted assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
|
219,176
|
|
|
17.50
|
%
|
|
|
|
56,360
|
|
|
|
|
4.5
|
%
|
|
|
|
n/a
|
|
|
|
|
n/a
|
|
|||
Bank
|
|
129,642
|
|
|
10.36
|
%
|
|
|
|
56,312
|
|
|
|
|
4.5
|
%
|
|
|
|
81,339
|
|
|
|
|
6.5
|
|
|||
Tier 1 capital (to average assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
|
222,269
|
|
|
15.09
|
%
|
|
|
|
58,918
|
|
|
|
|
4.0
|
%
|
|
|
|
n/a
|
|
|
|
|
n/a
|
|
|||
Bank
|
|
129,642
|
|
|
8.81
|
%
|
|
|
|
58,861
|
|
|
|
|
4.0
|
%
|
|
|
|
73,577
|
|
|
|
|
5.0
|
|
|||
As of December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total capital (to risk-weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
|
$
|
228,566
|
|
|
22.02
|
%
|
|
|
|
$
|
83,039
|
|
|
|
|
8.0
|
%
|
|
|
|
n/a
|
|
|
|
|
n/a
|
|
|
Bank
|
|
130,237
|
|
|
12.55
|
%
|
|
|
|
83,020
|
|
|
|
|
8.0
|
%
|
|
|
|
$
|
103,775
|
|
|
|
|
10.0
|
%
|
||
Tier 1 capital (to risk-weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
|
215,057
|
|
|
20.72
|
%
|
|
|
|
62,275
|
|
|
|
|
6.0
|
%
|
|
|
|
n/a
|
|
|
|
|
n/a
|
|
|||
Bank
|
|
121,713
|
|
|
11.73
|
%
|
|
|
|
62,257
|
|
|
|
|
6.0
|
%
|
|
|
|
83,010
|
|
|
|
|
8.0
|
|
|||
Common equity tier 1 to risk-weighted assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
|
211,964
|
|
|
20.42
|
%
|
|
|
|
46,711
|
|
|
|
|
4.5
|
%
|
|
|
|
n/a
|
|
|
|
|
n/a
|
|
|||
Bank
|
|
121,713
|
|
|
11.73
|
%
|
|
|
|
46,693
|
|
|
|
|
4.5
|
%
|
|
|
|
67,445
|
|
|
|
|
6.5
|
|
|||
Tier 1 capital (to average assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
|
$
|
215,057
|
|
|
16.82
|
%
|
|
|
|
51,143
|
|
|
|
|
4.0
|
%
|
|
|
|
n/a
|
|
|
|
|
n/a
|
|
||
Bank
|
|
121,713
|
|
|
9.52
|
%
|
|
|
|
51,140
|
|
|
|
|
4.0
|
%
|
|
|
|
63,925
|
|
|
|
|
5.0
|
|
|
|
For the Six Months Ended June 30,
|
||||||||||||||||||||
|
|
2017
|
|
2016
|
||||||||||||||||||
|
|
|
|
Interest
|
|
|
|
|
|
Interest
|
|
|
||||||||||
|
|
Average
|
|
Earned/
|
|
Average
|
|
Average
|
|
Earned/
|
|
Average
|
||||||||||
|
|
Outstanding
|
|
Interest
|
|
Yield/
|
|
Outstanding
|
|
Interest
|
|
Yield/
|
||||||||||
|
|
Balance
|
|
Paid
|
|
Rate
|
|
Balance
|
|
Paid
|
|
Rate
|
||||||||||
|
|
(Dollars in thousands)
|
||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total loans(1)
|
|
$
|
1,039,202
|
|
|
$
|
24,907
|
|
|
4.83
|
%
|
|
$
|
885,491
|
|
|
$
|
21,407
|
|
|
4.86
|
%
|
Securities available for sale
|
|
127,557
|
|
|
1,310
|
|
|
2.07
|
|
|
79,032
|
|
|
679
|
|
|
1.73
|
|
||||
Investment in subsidiary
|
|
93
|
|
|
1
|
|
|
2.17
|
|
|
93
|
|
|
2
|
|
|
4.32
|
|
||||
Interest-earning deposits in other banks
|
|
247,077
|
|
|
1,158
|
|
|
0.95
|
|
|
64,804
|
|
|
173
|
|
|
0.54
|
|
||||
Total interest-earning assets
|
|
1,413,929
|
|
|
27,376
|
|
|
3.90
|
|
|
1,029,420
|
|
|
22,261
|
|
|
4.35
|
|
||||
Allowance for loan losses
|
|
(8,839
|
)
|
|
|
|
|
|
(7,248
|
)
|
|
|
|
|
||||||||
Noninterest-earning assets
|
|
104,258
|
|
|
|
|
|
|
91,227
|
|
|
|
|
|
||||||||
Total assets
|
|
$
|
1,509,348
|
|
|
|
|
|
|
$
|
1,113,399
|
|
|
|
|
|
||||||
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits
|
|
$
|
864,515
|
|
|
$
|
3,389
|
|
|
0.79
|
%
|
|
$
|
621,352
|
|
|
$
|
2,007
|
|
|
0.65
|
%
|
Advances from FHLB
|
|
38,275
|
|
|
159
|
|
|
0.84
|
|
|
49,011
|
|
|
143
|
|
|
0.59
|
|
||||
Other borrowings
|
|
8,065
|
|
|
199
|
|
|
4.98
|
|
|
8,076
|
|
|
192
|
|
|
4.78
|
|
||||
Total interest-bearing liabilities
|
|
910,855
|
|
|
3,747
|
|
|
0.83
|
|
|
678,439
|
|
|
2,342
|
|
|
0.69
|
|
||||
Noninterest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest-bearing deposits
|
|
351,373
|
|
|
|
|
|
|
296,162
|
|
|
|
|
|
||||||||
Other liabilities
|
|
3,189
|
|
|
|
|
|
|
2,655
|
|
|
|
|
|
||||||||
Total noninterest-bearing liabilities
|
|
354,562
|
|
|
|
|
|
|
298,817
|
|
|
|
|
|
||||||||
Stockholders’ equity
|
|
243,931
|
|
|
|
|
|
|
136,143
|
|
|
|
|
|
||||||||
Total liabilities and stockholders’ equity
|
|
$
|
1,509,348
|
|
|
|
|
|
|
$
|
1,113,399
|
|
|
|
|
|
||||||
Net interest rate spread(2)
|
|
|
|
|
|
3.07
|
%
|
|
|
|
|
|
3.66
|
%
|
||||||||
Net interest income
|
|
|
|
$
|
23,629
|
|
|
|
|
|
|
$
|
19,919
|
|
|
|
||||||
Net interest margin(3)
|
|
|
|
|
|
3.37
|
%
|
|
|
|
|
|
3.89
|
%
|
(1)
|
Includes average outstanding balances of loans held for sale of
$2,634
and
$4,367
and deferred loan fees of $46 and $60 for the
six months ended June 30, 2017
and
2016
, respectively.
|
(2)
|
Net interest spread is the average yield on interest‑earning assets minus the average rate on interest‑bearing liabilities.
|
(3)
|
Net interest margin is equal to net interest income divided by average interest‑earning assets.
|
|
|
For the Six Months Ended
|
||||||||||
|
|
June 30, 2017 vs. 2016
|
||||||||||
|
|
Increase
|
|
|
||||||||
|
|
(Decrease)
|
|
|
||||||||
|
|
Due to Change in
|
|
|
||||||||
|
|
Volume
|
|
Rate
|
|
Total
|
||||||
|
|
(Dollars in thousands)
|
||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
||||||
Total loans
|
|
$
|
3,706
|
|
|
$
|
(206
|
)
|
|
$
|
3,500
|
|
Securities available for sale
|
|
416
|
|
|
215
|
|
|
631
|
|
|||
Investment in subsidiary
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|||
Interest-earning deposits in other banks
|
|
488
|
|
|
497
|
|
|
985
|
|
|||
Total increase in interest income
|
|
4,610
|
|
|
505
|
|
|
5,115
|
|
|||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|||||
Interest-bearing deposits
|
|
783
|
|
|
599
|
|
|
1,382
|
|
|||
Advances from FHLB
|
|
(31
|
)
|
|
47
|
|
|
16
|
|
|||
Other borrowings
|
|
—
|
|
|
7
|
|
|
7
|
|
|||
Total increase in interest expense
|
|
752
|
|
|
653
|
|
|
1,405
|
|
|||
Increase (decrease) in net interest income
|
|
$
|
3,858
|
|
|
$
|
(148
|
)
|
|
$
|
3,710
|
|
|
|
For the
|
|
|
||||||||
|
|
Six Months Ended
|
|
|
||||||||
|
|
June 30,
|
|
|
||||||||
|
|
|
|
|
|
Increase
|
||||||
|
|
2017
|
|
2016
|
|
(Decrease)
|
||||||
|
|
(Dollars in thousands)
|
||||||||||
Noninterest income:
|
|
|
|
|
|
|
||||||
Service charges and fees on deposit accounts
|
|
$
|
1,064
|
|
|
$
|
877
|
|
|
$
|
187
|
|
Gain on sales of investment securities
|
|
—
|
|
|
15
|
|
|
(15
|
)
|
|||
Gain on sales of loans
|
|
1,562
|
|
|
1,282
|
|
|
280
|
|
|||
Loss on sales of other assets owned
|
|
(8
|
)
|
|
—
|
|
|
(8
|
)
|
|||
Bank-owned life insurance
|
|
373
|
|
|
384
|
|
|
(11
|
)
|
|||
Other
|
|
310
|
|
|
227
|
|
|
83
|
|
|||
Total noninterest income
|
|
$
|
3,301
|
|
|
$
|
2,785
|
|
|
$
|
516
|
|
|
|
For the Six Months Ended
|
|
Increase
|
||||||||
|
|
June 30,
|
|
(Decrease)
|
||||||||
|
|
2017
|
|
2016
|
|
2017 vs. 2016
|
||||||
|
|
(Dollars in thousands)
|
||||||||||
Salaries and employee benefits
|
|
$
|
7,550
|
|
|
$
|
6,763
|
|
|
$
|
787
|
|
Non-staff expenses:
|
|
|
|
|
|
|
||||||
Occupancy and equipment
|
|
2,026
|
|
|
1,795
|
|
|
231
|
|
|||
Professional fees
|
|
1,986
|
|
|
1,076
|
|
|
910
|
|
|||
Data processing and software expense
|
|
732
|
|
|
554
|
|
|
178
|
|
|||
FDIC assessment fees
|
|
651
|
|
|
269
|
|
|
382
|
|
|||
Marketing
|
|
469
|
|
|
411
|
|
|
58
|
|
|||
Other assets owned expenses and write-downs
|
|
38
|
|
|
130
|
|
|
(92
|
)
|
|||
Amortization of intangibles
|
|
190
|
|
|
190
|
|
|
—
|
|
|||
Telephone and communications
|
|
208
|
|
|
197
|
|
|
11
|
|
|||
Other
|
|
1,382
|
|
|
892
|
|
|
490
|
|
|||
Total noninterest expense
|
|
$
|
15,232
|
|
|
$
|
12,277
|
|
|
$
|
2,955
|
|
|
|
For the Three Months Ended June 30,
|
||||||||||||||||||||
|
|
2017
|
|
2016
|
||||||||||||||||||
|
|
|
|
Interest
|
|
|
|
|
|
Interest
|
|
|
||||||||||
|
|
Average
|
|
Earned/
|
|
Average
|
|
Average
|
|
Earned/
|
|
Average
|
||||||||||
|
|
Outstanding
|
|
Interest
|
|
Yield/
|
|
Outstanding
|
|
Interest
|
|
Yield/
|
||||||||||
|
|
Balance
|
|
Paid
|
|
Rate
|
|
Balance
|
|
Paid
|
|
Rate
|
||||||||||
|
|
(Dollars in thousands)
|
||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total loans(1)
|
|
$
|
1,070,436
|
|
|
$
|
13,024
|
|
|
4.88
|
%
|
|
$
|
914,121
|
|
|
$
|
11,052
|
|
|
4.86
|
%
|
Securities available for sale
|
|
135,795
|
|
|
735
|
|
|
2.17
|
|
|
80,498
|
|
|
344
|
|
|
1.72
|
|
||||
Investment in subsidiary
|
|
93
|
|
|
—
|
|
|
—
|
|
|
93
|
|
|
1
|
|
|
4.32
|
|
||||
Interest-bearing deposits in other banks
|
|
199,050
|
|
|
548
|
|
|
1.10
|
|
|
59,506
|
|
|
80
|
|
|
0.54
|
|
||||
Total interest-earning assets
|
|
1,405,374
|
|
|
14,307
|
|
|
4.08
|
|
|
1,054,218
|
|
|
11,477
|
|
|
4.38
|
|
||||
Allowance for loan losses
|
|
(9,117
|
)
|
|
|
|
|
|
|
|
(7,604
|
)
|
|
|
|
|
|
|
||||
Noninterest-earning assets
|
|
104,819
|
|
|
|
|
|
|
|
|
92,179
|
|
|
|
|
|
|
|
||||
Total assets
|
|
$
|
1,501,076
|
|
|
|
|
|
|
|
|
$
|
1,138,793
|
|
|
|
|
|
|
|
||
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest-bearing deposits
|
|
$
|
870,542
|
|
|
$
|
1,742
|
|
|
0.80
|
%
|
|
$
|
636,875
|
|
|
$
|
1,072
|
|
|
0.68
|
%
|
Advances from FHLB
|
|
38,258
|
|
|
89
|
|
|
0.93
|
|
|
54,425
|
|
|
80
|
|
|
0.59
|
|
||||
Other borrowings
|
|
8,067
|
|
|
100
|
|
|
4.97
|
|
|
8,077
|
|
|
97
|
|
|
4.83
|
|
||||
Total interest-bearing liabilities
|
|
916,867
|
|
|
1,931
|
|
|
0.84
|
|
|
699,377
|
|
|
1,249
|
|
|
0.72
|
|
||||
Noninterest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Noninterest-bearing deposits
|
|
334,813
|
|
|
|
|
|
|
|
|
298,887
|
|
|
|
|
|
|
|
||||
Other liabilities
|
|
3,156
|
|
|
|
|
|
|
|
|
2,687
|
|
|
|
|
|
|
|
||||
Total noninterest-bearing liabilities
|
|
337,969
|
|
|
|
|
|
|
|
|
301,574
|
|
|
|
|
|
|
|
||||
Stockholders’ equity
|
|
246,240
|
|
|
|
|
|
|
|
|
137,842
|
|
|
|
|
|
|
|
||||
Total liabilities and stockholders’ equity
|
|
$
|
1,501,076
|
|
|
|
|
|
|
|
|
$
|
1,138,793
|
|
|
|
|
|
|
|
||
Net interest rate spread(2)
|
|
|
|
|
|
|
3.24
|
%
|
|
|
|
|
|
|
3.66
|
%
|
||||||
Net interest income
|
|
|
|
$
|
12,376
|
|
|
|
|
|
|
|
$
|
10,228
|
|
|
|
|
||||
Net interest margin(3)
|
|
|
|
|
|
3.53
|
%
|
|
|
|
|
|
3.90
|
%
|
(1)
|
Includes average outstanding balances of loans held for sale of
$3,169
and
$5,192
and deferred loan fees of $42 and $60 for the three months ended
June 30, 2017
and
2016
, respectively.
|
|
|
For the Three Months Ended
|
||||||||||
|
|
June 30, 2017 vs. 2016
|
||||||||||
|
|
Increase
|
|
|
||||||||
|
|
(Decrease)
|
|
|
||||||||
|
|
Due to Change in
|
|
|
||||||||
|
|
Volume
|
|
Rate
|
|
Total
|
||||||
|
|
(Dollars in thousands)
|
||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
||||||
Total loans
|
|
$
|
1,895
|
|
|
$
|
77
|
|
|
$
|
1,972
|
|
Securities available for sale
|
|
237
|
|
|
154
|
|
|
391
|
|
|||
Investment in subsidiary
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|||
Interest-bearing deposits in other banks
|
|
188
|
|
|
280
|
|
|
468
|
|
|||
Total increase in interest income
|
|
2,320
|
|
|
510
|
|
|
2,830
|
|
|||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|||||
Interest-bearing deposits
|
|
394
|
|
|
276
|
|
|
670
|
|
|||
Advances from FHLB
|
|
(24
|
)
|
|
33
|
|
|
9
|
|
|||
Other borrowings
|
|
—
|
|
|
3
|
|
|
3
|
|
|||
Total increase in interest expense
|
|
370
|
|
|
312
|
|
|
682
|
|
|||
Increase (decrease) in net interest income
|
|
$
|
1,950
|
|
|
$
|
198
|
|
|
$
|
2,148
|
|
|
|
For the Three Months Ended
|
||||||||||
|
|
June 30,
|
||||||||||
|
|
2017
|
|
2016
|
|
2017 vs. 2016
|
||||||
|
|
(Dollars in thousands)
|
||||||||||
|
|
|
|
|
|
|
||||||
Service charges and fees on deposit accounts
|
|
$
|
555
|
|
|
$
|
443
|
|
|
$
|
112
|
|
Gain on sales of loans
|
|
815
|
|
|
620
|
|
|
195
|
|
|||
Loss on sales of other assets owned
|
|
(8
|
)
|
|
—
|
|
|
(8
|
)
|
|||
Bank-owned life insurance
|
|
186
|
|
|
191
|
|
|
(5
|
)
|
|||
Other
|
|
218
|
|
|
158
|
|
|
60
|
|
|||
Total noninterest income
|
|
$
|
1,766
|
|
|
$
|
1,412
|
|
|
$
|
354
|
|
|
|
For the Three Months Ended
|
|
Increase
|
||||||||
|
|
June 30,
|
|
(Decrease)
|
||||||||
|
|
2017
|
|
2016
|
|
2017 vs. 2016
|
||||||
|
|
(Dollars in thousands)
|
||||||||||
Salaries and employee benefits
|
|
$
|
3,642
|
|
|
$
|
3,589
|
|
|
$
|
53
|
|
Non-staff expenses:
|
|
|
|
|
|
|
|
|||||
Occupancy and equipment
|
|
1,015
|
|
|
894
|
|
|
121
|
|
|||
Professional fees
|
|
1,188
|
|
|
503
|
|
|
685
|
|
|||
Data processing and software expense
|
|
372
|
|
|
270
|
|
|
102
|
|
|||
FDIC assessment fees
|
|
393
|
|
|
132
|
|
|
261
|
|
|||
Marketing
|
|
225
|
|
|
211
|
|
|
14
|
|
|||
Other assets owned expenses and write-downs
|
|
13
|
|
|
55
|
|
|
(42
|
)
|
|||
Amortization of intangibles
|
|
95
|
|
|
95
|
|
|
—
|
|
|||
Telephone and communications
|
|
106
|
|
|
100
|
|
|
6
|
|
|||
Other
|
|
733
|
|
|
452
|
|
|
281
|
|
|||
Total noninterest expense
|
|
$
|
7,782
|
|
|
$
|
6,301
|
|
|
$
|
1,481
|
|
|
|
As of June 30,
|
|
As of December 31,
|
||||||||||
|
|
2017
|
|
2016
|
||||||||||
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||
|
|
(Dollars in thousands)
|
||||||||||||
Commercial
|
|
$
|
347,017
|
|
|
30.9
|
%
|
|
$
|
291,416
|
|
|
29.4
|
%
|
Real estate:
|
|
|
|
|
|
|
|
|
||||||
Construction and land
|
|
136,332
|
|
|
12.1
|
%
|
|
162,614
|
|
|
16.4
|
%
|
||
Farmland
|
|
8,448
|
|
|
0.8
|
%
|
|
8,262
|
|
|
0.8
|
%
|
||
1 - 4 family residential
|
|
157,823
|
|
|
14.1
|
%
|
|
140,137
|
|
|
14.1
|
%
|
||
Multi-family residential
|
|
38,265
|
|
|
3.4
|
%
|
|
14,683
|
|
|
1.5
|
%
|
||
Commercial Real Estate
|
|
430,895
|
|
|
38.4
|
%
|
|
370,696
|
|
|
37.4
|
%
|
||
Consumer
|
|
3,688
|
|
|
0.3
|
%
|
|
4,089
|
|
|
0.4
|
%
|
||
Total loans held for investment
|
|
$
|
1,122,468
|
|
|
100.0
|
%
|
|
$
|
991,897
|
|
|
100
|
%
|
Total loans held for sale
|
|
$
|
4,118
|
|
|
|
|
$
|
5,208
|
|
|
|
|
|
As of June 30,
|
|
As of December 31,
|
||||
|
|
2017
|
|
2016
|
||||
|
|
(Dollars in thousands)
|
||||||
Non-accrual loans
|
|
$
|
1,514
|
|
|
$
|
941
|
|
Accruing loans 90 or more days past due
|
|
15
|
|
|
835
|
|
||
Total nonperforming loans
|
|
1,529
|
|
|
1,776
|
|
||
Other real estate owned:
|
|
|
|
|
||||
Commercial real estate, construction, land and land development
|
|
493
|
|
|
493
|
|
||
Residential real estate
|
|
—
|
|
|
169
|
|
||
Total other real estate owned
|
|
493
|
|
|
662
|
|
||
Total nonperforming assets
|
|
$
|
2,022
|
|
|
$
|
2,438
|
|
Restructured loans—non-accrual
|
|
21
|
|
|
170
|
|
||
Restructured loans—accruing
|
|
632
|
|
|
652
|
|
||
Ratio of nonperforming loans to total loans
|
|
0.14
|
%
|
|
0.18
|
%
|
||
Ratio of nonperforming assets to total assets
|
|
0.13
|
%
|
|
0.17
|
%
|
|
|
As of June 30,
|
|
As of December 31,
|
||||
|
|
2017
|
|
2016
|
||||
|
|
(Dollars in thousands)
|
||||||
Real estate:
|
|
|
|
|
||||
Construction and land
|
|
$
|
—
|
|
|
$
|
—
|
|
Farmland
|
|
—
|
|
|
—
|
|
||
1 - 4 family residential
|
|
—
|
|
|
—
|
|
||
Multi-family residential
|
|
—
|
|
|
—
|
|
||
Commercial Real Estate
|
|
727
|
|
|
—
|
|
||
Commercial
|
|
778
|
|
|
930
|
|
||
Consumer
|
|
9
|
|
|
11
|
|
||
Total
|
|
$
|
1,514
|
|
|
$
|
941
|
|
|
|
As of June 30, 2017
|
||||||||||||||||||
|
|
|
|
Special
|
|
|
|
|
|
|
||||||||||
|
|
Pass
|
|
Mention
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
|
|
(Dollars in thousands)
|
||||||||||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction and land
|
|
$
|
136,332
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
136,332
|
|
Farmland
|
|
8,448
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,448
|
|
|||||
1 - 4 family residential
|
|
157,564
|
|
|
—
|
|
|
259
|
|
|
—
|
|
|
157,823
|
|
|||||
Multi-family residential
|
|
38,265
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38,265
|
|
|||||
Commercial Real Estate
|
|
424,247
|
|
|
5,358
|
|
|
1,290
|
|
|
—
|
|
|
430,895
|
|
|||||
Commercial
|
|
338,701
|
|
|
6,990
|
|
|
1,210
|
|
|
116
|
|
|
347,017
|
|
|||||
Consumer
|
|
3,672
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
3,688
|
|
|||||
Total
|
|
$
|
1,107,229
|
|
|
$
|
12,348
|
|
|
$
|
2,775
|
|
|
$
|
116
|
|
|
$
|
1,122,468
|
|
|
|
As of December 31, 2016
|
||||||||||||||||||
|
|
|
|
Special
|
|
|
|
|
|
|
||||||||||
|
|
Pass
|
|
Mention
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
|
|
(Dollars in thousands)
|
||||||||||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction and land
|
|
$
|
162,614
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
162,614
|
|
Farmland
|
|
8,262
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,262
|
|
|||||
1 - 4 family residential
|
|
139,212
|
|
|
710
|
|
|
215
|
|
|
—
|
|
|
140,137
|
|
|||||
Multi-family residential
|
|
14,683
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,683
|
|
|||||
Commercial Real Estate
|
|
368,370
|
|
|
2,326
|
|
|
—
|
|
|
—
|
|
|
370,696
|
|
|||||
Commercial
|
|
289,589
|
|
|
686
|
|
|
1,034
|
|
|
107
|
|
|
291,416
|
|
|||||
Consumer
|
|
4,078
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
4,089
|
|
|||||
Total
|
|
$
|
986,808
|
|
|
$
|
3,722
|
|
|
$
|
1,260
|
|
|
$
|
107
|
|
|
$
|
991,897
|
|
|
|
For the Six Months Ended
|
|
For the Six Months Ended
|
|
For the Year Ended
|
||||||
|
|
June 30, 2017
|
|
June 30, 2016
|
|
December 31, 2016
|
||||||
|
|
(Dollars in thousands)
|
||||||||||
Average loans outstanding(1)
|
|
$
|
1,036,614
|
|
|
$
|
881,185
|
|
|
$
|
919,441
|
|
Gross loans outstanding at end of period(1)
|
|
$
|
1,122,468
|
|
|
$
|
928,000
|
|
|
$
|
991,897
|
|
Allowance for loan losses at beginning of period
|
|
$
|
8,524
|
|
|
$
|
6,772
|
|
|
$
|
6,772
|
|
Provision for loan losses
|
|
1,833
|
|
|
1,372
|
|
|
2,050
|
|
|||
Charge-offs:
|
|
|
|
|
|
|
||||||
Real estate:
|
|
|
|
|
|
|
||||||
Construction, land and farmland
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential
|
|
(11
|
)
|
|
—
|
|
|
—
|
|
|||
Commercial Real Estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Commercial
|
|
(611
|
)
|
|
(240
|
)
|
|
(314
|
)
|
|||
Consumer
|
|
—
|
|
|
(9
|
)
|
|
(19
|
)
|
|||
Total charge-offs
|
|
(622
|
)
|
|
(249
|
)
|
|
(333
|
)
|
|||
Recoveries:
|
|
|
|
|
|
|
||||||
Real estate:
|
|
|
|
|
|
|
||||||
Construction, land and farmland
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Commercial Real Estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Commercial
|
|
5
|
|
|
14
|
|
|
32
|
|
|||
Consumer
|
|
—
|
|
|
1
|
|
|
3
|
|
|||
Total recoveries
|
|
5
|
|
|
15
|
|
|
35
|
|
|||
Net charge-offs
|
|
(617
|
)
|
|
(234
|
)
|
|
(298
|
)
|
|||
Allowance for loan losses at end of period
|
|
$
|
9,740
|
|
|
$
|
7,910
|
|
|
$
|
8,524
|
|
Ratio of allowance to end of period loans
|
|
0.87
|
%
|
|
0.85
|
%
|
|
0.86
|
%
|
|||
Ratio of net charge-offs to average loans
|
|
0.06
|
%
|
|
0.03
|
%
|
|
0.03
|
%
|
(1)
|
Excluding loans held for sale and deferred loan fees.
|
|
|
As of
|
|
As of
|
||||||||||
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||
|
|
|
|
Percent
|
|
|
|
Percent
|
||||||
|
|
Amount
|
|
of Total
|
|
Amount
|
|
of Total
|
||||||
|
|
(Dollars in thousands)
|
||||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
||||||
Construction and land
|
|
$
|
1,056
|
|
|
10.8
|
%
|
|
$
|
1,346
|
|
|
15.8
|
%
|
Farmland
|
|
68
|
|
|
0.7
|
|
|
69
|
|
|
0.8
|
|
||
1 - 4 family residential
|
|
1,150
|
|
|
11.8
|
|
|
999
|
|
|
11.7
|
|
||
Multi-family residential
|
|
325
|
|
|
3.3
|
|
|
117
|
|
|
1.4
|
|
||
Commercial Real Estate
|
|
3,557
|
|
|
36.5
|
|
|
3,003
|
|
|
35.2
|
|
||
Total real estate
|
|
$
|
6,156
|
|
|
63.1
|
%
|
|
$
|
5,534
|
|
|
64.9
|
%
|
Commercial
|
|
3,554
|
|
|
36.6
|
|
|
2,955
|
|
|
34.7
|
|
||
Consumer
|
|
30
|
|
|
0.3
|
|
|
35
|
|
|
0.4
|
|
||
Total allowance for loan losses
|
|
$
|
9,740
|
|
|
100.0
|
%
|
|
$
|
8,524
|
|
|
100.0
|
%
|
|
|
As of June 30, 2017
|
||||||||||||||
|
|
|
|
Gross
|
|
Gross
|
|
|
||||||||
|
|
Amortized
|
|
Unrealized
|
|
Unrealized
|
|
|
||||||||
|
|
Cost
|
|
Gains
|
|
Losses
|
|
Fair Value
|
||||||||
|
|
(Dollars in thousands)
|
||||||||||||||
U.S. government agencies
|
|
$
|
691
|
|
|
$
|
—
|
|
|
$
|
10
|
|
|
$
|
681
|
|
Corporate securities
|
|
7,500
|
|
|
197
|
|
|
—
|
|
|
7,697
|
|
||||
Municipal securities
|
|
14,914
|
|
|
42
|
|
|
126
|
|
|
14,830
|
|
||||
Mortgage-backed securities
|
|
65,814
|
|
|
115
|
|
|
340
|
|
|
65,589
|
|
||||
Collateralized mortgage obligations
|
|
45,370
|
|
|
158
|
|
|
316
|
|
|
45,212
|
|
||||
Asset-backed securities
|
|
688
|
|
|
11
|
|
|
—
|
|
|
699
|
|
||||
Total
|
|
$
|
134,977
|
|
|
$
|
523
|
|
|
$
|
792
|
|
|
$
|
134,708
|
|
|
|
As of December 31, 2016
|
||||||||||||||
|
|
|
|
Gross
|
|
Gross
|
|
|
||||||||
|
|
Amortized
|
|
Unrealized
|
|
Unrealized
|
|
|
||||||||
|
|
Cost
|
|
Gains
|
|
Losses
|
|
Fair Value
|
||||||||
|
|
(Dollars in thousands)
|
||||||||||||||
U.S. government agencies
|
|
$
|
732
|
|
|
$
|
—
|
|
|
$
|
36
|
|
|
$
|
696
|
|
Municipal securities
|
|
14,540
|
|
|
2
|
|
|
500
|
|
|
14,042
|
|
||||
Mortgage-backed securities
|
|
49,907
|
|
|
83
|
|
|
871
|
|
|
49,119
|
|
||||
Collateralized mortgage obligations
|
|
38,507
|
|
|
32
|
|
|
612
|
|
|
37,927
|
|
||||
Asset-backed securities
|
|
764
|
|
|
11
|
|
|
—
|
|
|
775
|
|
||||
Total
|
|
$
|
104,450
|
|
|
$
|
128
|
|
|
$
|
2,019
|
|
|
$
|
102,559
|
|
|
|
As of June 30, 2017
|
|||||||||||||||||||||||||||||||||
|
|
|
|
After One Year
|
|
After Five Years
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
|
Within
|
|
but Within
|
|
but Within
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
|
One Year
|
|
Five Years
|
|
Ten Years
|
|
After Ten Years
|
|
Total
|
|||||||||||||||||||||||||
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|
Total
|
|
Yield
|
|||||||||||||||
|
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||||
U.S. government agencies
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
338
|
|
|
1.83
|
%
|
|
$
|
343
|
|
|
2.05
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
681
|
|
|
1.94
|
%
|
Corporate securities
|
|
—
|
|
|
—
|
|
|
7,697
|
|
|
5.28
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5.24
|
|
|
7,697
|
|
|
5.28
|
|
|||||
Municipal securities
|
|
—
|
|
|
—
|
|
|
3,614
|
|
|
2.11
|
|
|
4,092
|
|
|
2.00
|
|
|
7,124
|
|
|
2.55
|
|
|
14,830
|
|
|
2.29
|
|
|||||
Mortgage-backed securities
|
|
—
|
|
|
—
|
|
|
49,888
|
|
|
1.98
|
|
|
15,621
|
|
|
2.42
|
|
|
80
|
|
|
2.71
|
|
|
65,589
|
|
|
2.09
|
|
|||||
Collateralized mortgage obligations
|
|
170
|
|
|
2.84
|
|
|
35,126
|
|
|
1.97
|
|
|
9,916
|
|
|
2.26
|
|
|
—
|
|
|
—
|
|
|
45,212
|
|
|
2.04
|
|
|||||
Asset-backed securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
699
|
|
|
1.85
|
|
|
—
|
|
|
—
|
|
|
699
|
|
|
1.85
|
|
|||||
Total
|
|
$
|
170
|
|
|
2.84
|
%
|
|
$
|
96,663
|
|
|
1.82
|
%
|
|
$
|
30,671
|
|
|
2.30
|
%
|
|
$
|
7,204
|
|
|
2.55
|
%
|
|
$
|
134,708
|
|
|
1.97
|
%
|
|
|
As of December 31, 2016
|
|||||||||||||||||||||||||||||||||
|
|
|
|
|
|
After One Year
|
|
After Five Years
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
|
Within
|
|
but Within
|
|
but Within
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
|
One Year
|
|
Five Years
|
|
Ten Years
|
|
After Ten Years
|
|
Total
|
|||||||||||||||||||||||||
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|
Total
|
|
Yield
|
|||||||||||||||
|
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||||
U.S. government agencies
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
345
|
|
|
1.62
|
%
|
|
$
|
351
|
|
|
2.02
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
696
|
|
|
1.82
|
%
|
Municipal securities
|
|
—
|
|
|
—
|
|
|
3,630
|
|
|
2.13
|
|
|
2,995
|
|
|
1.96
|
|
|
7,417
|
|
|
2.51
|
|
|
14,042
|
|
|
2.29
|
|
|||||
Mortgage-backed securities
|
|
—
|
|
|
—
|
|
|
37,307
|
|
|
1.63
|
|
|
11,731
|
|
|
2.22
|
|
|
81
|
|
|
2.10
|
|
|
49,119
|
|
|
1.77
|
|
|||||
Collateralized mortgage obligations
|
|
262
|
|
|
2.98
|
|
|
36,850
|
|
|
1.73
|
|
|
815
|
|
|
2.42
|
|
|
—
|
|
|
—
|
|
|
37,927
|
|
|
1.75
|
|
|||||
Asset-backed securities
|
|
—
|
|
|
—
|
|
|
775
|
|
|
1.40
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
775
|
|
|
1.40
|
|
|||||
Total
|
|
$
|
262
|
|
|
2.98
|
%
|
|
$
|
78,907
|
|
|
1.70
|
%
|
|
$
|
15,892
|
|
|
2.18
|
%
|
|
$
|
7,498
|
|
|
2.51
|
%
|
|
$
|
102,559
|
|
|
1.83
|
%
|
|
|
||
|
FHLB Advances
|
||
|
(Dollars in thousands)
|
||
June 30, 2017
|
|
||
Amount outstanding at period-end
|
$
|
38,235
|
|
Weighted average interest rate at period-end
|
1.26
|
%
|
|
Maximum month-end balance during the period
|
38,294
|
|
|
Average balance outstanding during the period
|
38,275
|
|
|
Weighted average interest rate during the period
|
0.84
|
%
|
|
December 31, 2016
|
|
|
|
Amount outstanding at period-end
|
$
|
38,306
|
|
Weighted average interest rate at period-end
|
0.77
|
%
|
|
Maximum month-end balance during the period
|
88,398
|
|
|
Average balance outstanding during the period
|
43,649
|
|
|
Weighted average interest rate during the period
|
0.60
|
%
|
|
|
As of June 30,
|
|
As of December 31,
|
||||
|
|
2017
|
|
2016
|
||||
|
|
(Dollars in thousands)
|
||||||
Junior subordinated debentures
|
|
$
|
3,093
|
|
|
$
|
3,093
|
|
Subordinated notes
|
|
4,946
|
|
|
4,942
|
|
||
Total
|
|
$
|
8,039
|
|
|
$
|
8,035
|
|
|
|
For the
|
|
For the
|
||
|
|
Six Months Ended
|
|
Year Ended
|
||
|
|
June 30, 2017
|
|
December 31, 2016
|
||
Sources of Funds:
|
|
|
|
|
||
Deposits:
|
|
|
|
|
||
Noninterest-bearing
|
|
23.3
|
%
|
|
25.5
|
%
|
Interest-bearing
|
|
57.3
|
|
|
57.9
|
|
Advances from FHLB
|
|
2.5
|
|
|
3.7
|
|
Other borrowings
|
|
0.5
|
|
|
0.7
|
|
Other liabilities
|
|
0.2
|
|
|
0.2
|
|
Stockholders’ equity
|
|
16.2
|
|
|
12.0
|
|
Total
|
|
100.0
|
%
|
|
100.0
|
%
|
Uses of Funds:
|
|
|
|
|
||
Loans
|
|
68.2
|
%
|
|
77.2
|
%
|
Securities available for sale
|
|
8.5
|
|
|
7.1
|
|
Interest-bearing deposits in other banks
|
|
16.4
|
|
|
7.8
|
|
Other noninterest-earning assets
|
|
6.9
|
|
|
7.9
|
|
Total
|
|
100.0
|
%
|
|
100.0
|
%
|
Average noninterest-bearing deposits to average deposits
|
|
28.9
|
%
|
|
30.5
|
%
|
Average loans to average deposits
|
|
84.7
|
%
|
|
92.5
|
%
|
|
|
As of June 30,
|
|
As of December 31,
|
||||||||||
|
|
2017
|
|
2016
|
||||||||||
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
||||||
|
|
(Dollars in thousands)
|
||||||||||||
Veritex Holdings, Inc.
|
|
|
|
|
|
|
|
|
||||||
Total capital (to risk-weighted assets)
|
|
$
|
236,955
|
|
|
18.92
|
%
|
|
$
|
228,566
|
|
|
22.02
|
%
|
Tier 1 capital (to risk-weighted assets)
|
|
222,269
|
|
|
17.75
|
|
|
215,057
|
|
|
20.72
|
|
||
Common equity tier 1 (to risk-weighted assets)
|
|
219,176
|
|
|
17.50
|
|
|
211,964
|
|
|
20.42
|
|
||
Tier 1 capital (to average assets)
|
|
222,269
|
|
|
15.09
|
|
|
215,057
|
|
|
16.82
|
|
||
Veritex Community Bank
|
|
|
|
|
|
|
|
|
||||||
Total capital (to risk-weighted assets)
|
|
$
|
139,381
|
|
|
11.14
|
%
|
|
$
|
130,237
|
|
|
12.55
|
%
|
Tier 1 capital (to risk-weighted assets)
|
|
129,642
|
|
|
10.36
|
|
|
121,713
|
|
|
11.73
|
|
||
Common equity tier 1 (to risk-weighted assets)
|
|
129,642
|
|
|
10.36
|
|
|
121,713
|
|
|
11.73
|
|
||
Tier 1 capital (to average assets)
|
|
129,642
|
|
|
8.81
|
|
|
121,713
|
|
|
9.52
|
|
|
|
As of June 30, 2017
|
|
As of December 31, 2016
|
||||||||
|
|
Percent Change
|
|
Percent Change
|
|
Percent Change
|
|
Percent Change
|
||||
Change in Interest
|
|
in Net Interest
|
|
in Fair Value
|
|
in Net Interest
|
|
in Fair Value
|
||||
Rates (Basis Points)
|
|
Income
|
|
of Equity
|
|
Income
|
|
of Equity
|
||||
+ 300
|
|
9.27
|
%
|
|
8.16
|
%
|
|
12.60
|
%
|
|
11.67
|
%
|
+ 200
|
|
7.21
|
%
|
|
9.98
|
%
|
|
9.63
|
%
|
|
12.04
|
%
|
+ 100
|
|
4.67
|
%
|
|
8.62
|
%
|
|
6.14
|
%
|
|
9.29
|
%
|
Base
|
|
0.23
|
%
|
|
—
|
%
|
|
0.99
|
%
|
|
—
|
%
|
−100
|
|
(3.56
|
)%
|
|
(11.17
|
)%
|
|
(2.56
|
)%
|
|
(11.22
|
)%
|
|
|
As of June 30,
|
|
As of December 31,
|
||||||||
|
|
2017
|
|
2016
|
|
2016
|
||||||
|
|
(Dollars in thousands, except share data)
|
||||||||||
Tangible Common Equity
|
|
|
|
|
|
|
||||||
Total stockholders’ equity
|
|
$
|
247,602
|
|
|
$
|
138,850
|
|
|
$
|
239,088
|
|
Adjustments:
|
|
|
|
|
|
|
||||||
Goodwill
|
|
(26,865
|
)
|
|
(26,865
|
)
|
|
(26,865
|
)
|
|||
Intangible assets
|
|
(2,171
|
)
|
|
(2,264
|
)
|
|
(2,181
|
)
|
|||
Total tangible common equity
|
|
$
|
218,566
|
|
|
$
|
109,721
|
|
|
$
|
210,042
|
|
Common shares outstanding(1)
|
|
15,233,010
|
|
|
10,727,863
|
|
|
15,195,328
|
|
|||
Book value per common share
|
|
$
|
16.25
|
|
|
$
|
12.94
|
|
|
$
|
15.73
|
|
Tangible book value per common share
|
|
$
|
14.35
|
|
|
$
|
10.23
|
|
|
$
|
13.82
|
|
(1)
|
Excludes the dilutive effect, if any, of
499,000
,
449,000
and
454,000
shares of common stock issuable upon exercise of outstanding stock options as of
June 30, 2017
,
June 30, 2016
and
December 31, 2016
, respectively, and
170,000
,
172,000
, and
147,000
shares of common stock issuable upon vesting of outstanding restricted stock units as of
June 30, 2017
,
June 30, 2016
and
December 31, 2016
, respectively.
|
|
|
As of June 30,
|
|
As of December 31,
|
||||
|
|
2017
|
|
2016
|
||||
|
|
(Dollars in thousands)
|
||||||
Tangible Common Equity
|
|
|
|
|
||||
Total stockholders’ equity
|
|
$
|
247,602
|
|
|
$
|
239,088
|
|
Adjustments:
|
|
|
|
|
||||
Goodwill
|
|
(26,865
|
)
|
|
(26,865
|
)
|
||
Intangible assets
|
|
(2,171
|
)
|
|
(2,181
|
)
|
||
Total tangible common equity
|
|
$
|
218,566
|
|
|
$
|
210,042
|
|
Tangible Assets
|
|
|
|
|
||||
Total assets
|
|
$
|
1,508,589
|
|
|
$
|
1,408,507
|
|
Adjustments:
|
|
|
|
|
||||
Goodwill
|
|
(26,865
|
)
|
|
(26,865
|
)
|
||
Intangible assets
|
|
(2,171
|
)
|
|
(2,181
|
)
|
||
Total tangible assets
|
|
$
|
1,479,553
|
|
|
$
|
1,379,461
|
|
Tangible Common Equity to Tangible Assets
|
|
14.77
|
%
|
|
15.23
|
%
|
•
|
risks related to the concentration of our business within the Dallas metropolitan area, including risks associated with any downturn in the real estate sector and risks associated with a decline in the values of single family homes in the Dallas metropolitan area;
|
•
|
our ability to implement our growth strategy, including identifying and consummating suitable acquisitions;
|
•
|
risks related to the integration of any acquired businesses, including exposure to potential asset quality and credit quality risks and unknown or contingent liabilities, the time and costs associated with integrating systems, technology platforms, procedures and personnel, the need for additional capital to finance such transactions, and possible failures in realizing the anticipated benefits from acquisitions;
|
•
|
our ability to recruit and retain successful bankers that meet our expectations in terms of customer relationships and profitability;
|
•
|
our ability to retain executive officers and key employees and their customer and community relationships;
|
•
|
risks associated with our limited operating history and the relatively unseasoned nature of a significant portion of our loan portfolio;
|
•
|
market conditions and economic trends nationally, regionally and particularly in the Dallas metropolitan area and Texas;
|
•
|
risks related to our strategic focus on lending to small to medium-sized businesses;
|
•
|
the sufficiency of the assumptions and estimates we make in establishing reserves for potential loan losses;
|
•
|
risks associated with our commercial loan portfolio, including the risk for deterioration in value of the general business assets that generally secure such loans;
|
•
|
risks associated with our commercial real estate and construction loan portfolios, including the risks inherent in the valuation of the collateral securing such loans;
|
•
|
potential changes in the prices, values and sales volumes of commercial and residential real estate securing our real estate loans;
|
•
|
risks related to the significant amount of credit that we have extended to a limited number of borrowers and in a limited geographic area;
|
•
|
our ability to maintain adequate liquidity and to raise necessary capital to fund our acquisition strategy and operations or to meet increased minimum regulatory capital levels;
|
•
|
changes in market interest rates that affect the pricing of our loans and deposits and our net interest income;
|
•
|
potential fluctuations in the market value and liquidity of our investment securities;
|
•
|
the effects of competition from a wide variety of local, regional, national and other providers of financial, investment and insurance services;
|
•
|
our ability to maintain an effective system of disclosure controls and procedures and internal controls over financial reporting;
|
•
|
risks associated with fraudulent and negligent acts by our customers, employees or vendors;
|
•
|
our ability to keep pace with technological change or difficulties when implementing new technologies;
|
•
|
risks associated with system failures or failures to prevent breaches of our network security;
|
•
|
risks associated with data processing system failures and errors;
|
•
|
our ability to successfully execute the acquisition of Sovereign;
|
•
|
our actual cost savings resulting from the acquisition of Sovereign are less than expected, we are unable to realize those cost savings as soon as expected or we incur additional or unexpected costs;
|
•
|
our revenues after the Sovereign acquisition are less than expected;
|
•
|
potential impairment on the goodwill we have recorded or may record in connection with business acquisitions;
|
•
|
the institution and outcome of litigation and other legal proceedings against us or to which we become subject;
|
•
|
our ability to comply with various governmental and regulatory requirements applicable to financial institutions;
|
•
|
the impact of recent and future legislative and regulatory changes, including changes in banking, securities and tax laws and regulations and their application by our regulators, such as the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, or the Dodd-Frank Act;
|
•
|
governmental monetary and fiscal policies, including the policies of the Federal Reserve;
|
•
|
our ability to comply with supervisory actions by federal and state banking agencies;
|
•
|
changes in the scope and cost of FDIC, insurance and other coverage; and
|
•
|
systemic risks associated with the soundness of other financial institutions.
|
Exhibit
Number
|
|
Description of Exhibit
|
|
|
|
|
Agreement and Plan of Reorganization dated December 14, 2016, by and between Veritex Holdings, Inc., Spartan Merger Sub, Inc., and Sovereign Bancshares, Inc. (incorporated herein by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K filed December 14, 2016).
|
|
|
|
|
|
Second Amended and Restated Certificate of Formation of Veritex Holdings, Inc. (incorporated by reference to Exhibit 3.1 to Amendment No. 1 to the Company’s Registration Statement on Form S-1 filed September 22, 2014 (File No. 333-198484)).
|
|
|
|
|
3.2
*
|
|
Third Amended and Restated Bylaws of Veritex Holdings, Inc.
|
|
|
|
3.3
*
|
|
Third Amended and Restated Bylaws of Veritex Holdings, Inc., marked to show amendments effective as of May 18, 2017.
|
|
|
|
31.1
*
|
|
Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
|
Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
|
Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
101*
|
|
The following materials from Veritex Holdings’ Quarterly Report on Form 10-Q for the quarter ended June 30, 2017, formatted in XBRL (Extensible Business Reporting Language), furnished herewith: (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations, (iii) Condensed Consolidated Statements of Comprehensive Income (Loss), (iv) Condensed Consolidated Statements of Changes in Shareholders’ Equity, (v) Condensed Consolidated Statements of Cash Flows, and (vi) Notes to Condensed Consolidated Financial Statements.
|
|
|
|
|
|
VERITEX HOLDINGS, INC.
|
|
|
(Registrant)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Date: July 25, 2017
|
|
/s/ C. Malcolm Holland, III
|
|
|
C. Malcolm Holland, III
|
|
|
Chairman and Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
|
|
|
|
|
|
|
|
|
|
|
|
Date: July 25, 2017
|
|
/s/ Noreen E. Skelly
|
|
|
Noreen E. Skelly
|
|
|
Chief Financial Officer
|
|
|
(Principal Financial and Accounting Officer)
|
|
|
|
|
|
|
|
|
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Veritex Holdings, Inc. for the quarter ended
June 30, 2017
;
|
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 and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Veritex Holdings, Inc. for the quarter ended
June 30, 2017
;
|
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 and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
1.
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
1.
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|