|
þ
|
|
Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
¨
|
|
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
Wisconsin
|
|
39-1576570
|
|
|
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
401 Charmany Drive, Madison, WI
|
|
53719
|
|
|
|
(Address of Principal Executive Offices)
|
|
(Zip Code)
|
|
|
|
|
|
Title of each class
|
|
Trading Symbol(s)
|
|
Name of each exchange on which registered
|
Common Stock, $0.01 par value
|
|
FBIZ
|
|
The Nasdaq Stock Market LLC
|
Large accelerated filer
¨
|
|
Accelerated filer
þ
|
|
Non-accelerated filer
¨
|
|
Smaller reporting company
þ
|
|
Emerging growth company
¨
|
|
|
June 30,
2019 |
|
December 31,
2018 |
||||
|
|
(Unaudited)
|
|
|
||||
|
(In Thousands, Except Share Data)
|
|||||||
Assets
|
|
|
|
|
||||
Cash and due from banks
|
|
$
|
21,744
|
|
|
$
|
23,319
|
|
Short-term investments
|
|
24,131
|
|
|
63,227
|
|
||
Cash and cash equivalents
|
|
45,875
|
|
|
86,546
|
|
||
Securities available-for-sale, at fair value
|
|
158,933
|
|
|
138,358
|
|
||
Securities held-to-maturity, at amortized cost
|
|
34,519
|
|
|
37,731
|
|
||
Loans held for sale
|
|
4,786
|
|
|
5,287
|
|
||
Loans and leases receivable, net of allowance for loan and lease losses of $19,819 and $20,425, respectively
|
|
1,700,157
|
|
|
1,597,230
|
|
||
Premises and equipment, net
|
|
2,866
|
|
|
3,284
|
|
||
Foreclosed properties
|
|
2,660
|
|
|
2,547
|
|
||
Right-of-use assets
|
|
7,853
|
|
|
—
|
|
||
Bank-owned life insurance
|
|
42,127
|
|
|
41,538
|
|
||
Federal Home Loan Bank stock, at cost
|
|
6,720
|
|
|
7,240
|
|
||
Goodwill and other intangible assets
|
|
12,000
|
|
|
12,045
|
|
||
Accrued interest receivable and other assets
|
|
51,808
|
|
|
34,651
|
|
||
Total assets
|
|
$
|
2,070,304
|
|
|
$
|
1,966,457
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
||||
Deposits
|
|
$
|
1,529,645
|
|
|
$
|
1,455,299
|
|
Federal Home Loan Bank advances and other borrowings
|
|
297,972
|
|
|
298,944
|
|
||
Junior subordinated notes
|
|
10,040
|
|
|
10,033
|
|
||
Lease liabilities
|
|
8,187
|
|
|
—
|
|
||
Accrued interest payable and other liabilities
|
|
35,605
|
|
|
21,474
|
|
||
Total liabilities
|
|
1,881,449
|
|
|
1,785,750
|
|
||
Stockholders’ equity:
|
|
|
|
|
||||
Preferred stock, $0.01 par value, 2,500,000 shares authorized, none issued or outstanding
|
|
—
|
|
|
—
|
|
||
Common stock, $0.01 par value, 25,000,000 shares authorized, 9,150,080 and 9,069,199 shares issued, 8,699,456 and 8,785,480 shares outstanding at June 30, 2019 and December 31, 2018, respectively
|
|
91
|
|
|
91
|
|
||
Additional paid-in capital
|
|
80,351
|
|
|
79,623
|
|
||
Retained earnings
|
|
120,841
|
|
|
110,310
|
|
||
Accumulated other comprehensive loss
|
|
(1,086
|
)
|
|
(1,684
|
)
|
||
Treasury stock, 450,624 and 283,719 shares at June 30, 2019 and December 31, 2018, respectively, at cost
|
|
(11,342
|
)
|
|
(7,633
|
)
|
||
Total stockholders’ equity
|
|
188,855
|
|
|
180,707
|
|
||
Total liabilities and stockholders’ equity
|
|
$
|
2,070,304
|
|
|
$
|
1,966,457
|
|
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(In Thousands, Except Per Share Data)
|
||||||||||||||
Interest income
|
|
|
|
|
|
|
|
|
||||||||
Loans and leases
|
|
$
|
23,904
|
|
|
$
|
21,243
|
|
|
$
|
48,111
|
|
|
$
|
40,904
|
|
Securities
|
|
1,175
|
|
|
938
|
|
|
2,270
|
|
|
1,794
|
|
||||
Short-term investments
|
|
230
|
|
|
287
|
|
|
608
|
|
|
491
|
|
||||
Total interest income
|
|
25,309
|
|
|
22,468
|
|
|
50,989
|
|
|
43,189
|
|
||||
Interest expense
|
|
|
|
|
|
|
|
|
||||||||
Deposits
|
|
6,258
|
|
|
3,209
|
|
|
12,054
|
|
|
6,038
|
|
||||
Federal Home Loan Bank advances and other borrowings
|
|
1,922
|
|
|
2,051
|
|
|
3,777
|
|
|
3,467
|
|
||||
Junior subordinated notes
|
|
277
|
|
|
277
|
|
|
552
|
|
|
552
|
|
||||
Total interest expense
|
|
8,457
|
|
|
5,537
|
|
|
16,383
|
|
|
10,057
|
|
||||
Net interest income
|
|
16,852
|
|
|
16,931
|
|
|
34,606
|
|
|
33,132
|
|
||||
Provision for loan and lease losses
|
|
(784
|
)
|
|
2,579
|
|
|
(736
|
)
|
|
5,054
|
|
||||
Net interest income after provision for loan and lease losses
|
|
17,636
|
|
|
14,352
|
|
|
35,342
|
|
|
28,078
|
|
||||
Non-interest income
|
|
|
|
|
|
|
|
|
||||||||
Trust and investment service fees
|
|
2,138
|
|
|
1,987
|
|
|
4,065
|
|
|
3,884
|
|
||||
Gain on sale of Small Business Administration loans
|
|
297
|
|
|
274
|
|
|
539
|
|
|
543
|
|
||||
Service charges on deposits
|
|
743
|
|
|
720
|
|
|
1,520
|
|
|
1,504
|
|
||||
Loan fees
|
|
464
|
|
|
389
|
|
|
877
|
|
|
917
|
|
||||
Increase in cash surrender value of bank-owned life insurance
|
|
297
|
|
|
297
|
|
|
589
|
|
|
589
|
|
||||
Commercial loan swap fees
|
|
1,051
|
|
|
70
|
|
|
1,523
|
|
|
703
|
|
||||
Other non-interest income
|
|
815
|
|
|
245
|
|
|
1,330
|
|
|
508
|
|
||||
Total non-interest income
|
|
5,805
|
|
|
3,982
|
|
|
10,443
|
|
|
8,648
|
|
||||
Non-interest expense
|
|
|
|
|
|
|
|
|
||||||||
Compensation
|
|
10,503
|
|
|
9,116
|
|
|
20,667
|
|
|
18,187
|
|
||||
Occupancy
|
|
559
|
|
|
544
|
|
|
1,149
|
|
|
1,073
|
|
||||
Professional fees
|
|
784
|
|
|
928
|
|
|
1,994
|
|
|
1,963
|
|
||||
Data processing
|
|
689
|
|
|
626
|
|
|
1,269
|
|
|
1,236
|
|
||||
Marketing
|
|
581
|
|
|
591
|
|
|
1,063
|
|
|
925
|
|
||||
Equipment
|
|
272
|
|
|
343
|
|
|
661
|
|
|
686
|
|
||||
Computer software
|
|
827
|
|
|
679
|
|
|
1,626
|
|
|
1,420
|
|
||||
FDIC insurance
|
|
302
|
|
|
369
|
|
|
595
|
|
|
668
|
|
||||
Collateral liquidation costs
|
|
89
|
|
|
222
|
|
|
(1
|
)
|
|
223
|
|
||||
Net gain on foreclosed properties
|
|
(21
|
)
|
|
—
|
|
|
(21
|
)
|
|
—
|
|
||||
Impairment of tax credit investments
|
|
2,088
|
|
|
329
|
|
|
4,102
|
|
|
442
|
|
||||
SBA recourse provision
|
|
113
|
|
|
99
|
|
|
594
|
|
|
(196
|
)
|
||||
Other non-interest expense
|
|
678
|
|
|
621
|
|
|
1,508
|
|
|
1,747
|
|
||||
Total non-interest expense
|
|
17,464
|
|
|
14,467
|
|
|
35,206
|
|
|
28,374
|
|
||||
Income before income tax (benefit) expense
|
|
5,977
|
|
|
3,867
|
|
|
10,579
|
|
|
8,352
|
|
||||
Income tax (benefit) expense
|
|
(595
|
)
|
|
578
|
|
|
(1,893
|
)
|
|
1,414
|
|
||||
Net income
|
|
$
|
6,572
|
|
|
$
|
3,289
|
|
|
$
|
12,472
|
|
|
$
|
6,938
|
|
Earnings per common share
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.75
|
|
|
$
|
0.38
|
|
|
$
|
1.43
|
|
|
$
|
0.79
|
|
Diluted
|
|
0.75
|
|
|
0.38
|
|
|
1.43
|
|
|
0.79
|
|
||||
Dividends declared per share
|
|
0.15
|
|
|
0.14
|
|
|
0.30
|
|
|
0.28
|
|
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Net income
|
|
$
|
6,572
|
|
|
$
|
3,289
|
|
|
$
|
12,472
|
|
|
$
|
6,938
|
|
Other comprehensive income, before tax
|
|
|
|
|
|
|
|
|
||||||||
Securities available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
Unrealized securities gains (losses) arising during the period
|
|
1,928
|
|
|
(531
|
)
|
|
3,239
|
|
|
(1,890
|
)
|
||||
Securities held-to-maturity:
|
|
|
|
|
|
|
|
|
||||||||
Amortization of net unrealized losses transferred from available-for-sale
|
|
14
|
|
|
17
|
|
|
28
|
|
|
36
|
|
||||
Interest rate swaps:
|
|
|
|
|
|
|
|
|
||||||||
Unrealized (losses) gains on interest rate swaps arising during the period
|
|
(1,514
|
)
|
|
358
|
|
|
(2,464
|
)
|
|
1,030
|
|
||||
Income tax (expense) benefit
|
|
(109
|
)
|
|
73
|
|
|
(205
|
)
|
|
238
|
|
||||
Total other comprehensive income (loss)
|
|
319
|
|
|
(83
|
)
|
|
598
|
|
|
(586
|
)
|
||||
Comprehensive income
|
|
$
|
6,891
|
|
|
$
|
3,206
|
|
|
$
|
13,070
|
|
|
$
|
6,352
|
|
|
|
Common Shares Outstanding
|
|
Common
Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Treasury
Stock
|
|
Total
|
|||||||||||||
|
|
(In Thousands, Except Share Data)
|
|||||||||||||||||||||||||
Balance at January 1, 2018
|
|
8,763,539
|
|
|
$
|
90
|
|
|
$
|
78,620
|
|
|
$
|
98,906
|
|
|
$
|
(1,238
|
)
|
|
$
|
(7,100
|
)
|
|
$
|
169,278
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,649
|
|
|
—
|
|
|
—
|
|
|
3,649
|
|
||||||
Other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(503
|
)
|
|
—
|
|
|
(503
|
)
|
||||||
Share-based compensation - restricted shares, net
|
|
1,055
|
|
|
—
|
|
|
286
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
286
|
|
||||||
Cash dividends ($0.14 per share)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,226
|
)
|
|
—
|
|
|
—
|
|
|
(1,226
|
)
|
||||||
Treasury stock purchased
|
|
(174
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
(4
|
)
|
||||||
Balance at March 31, 2018
|
|
8,764,420
|
|
|
90
|
|
|
78,906
|
|
|
101,329
|
|
|
(1,741
|
)
|
|
(7,104
|
)
|
|
171,480
|
|
||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,289
|
|
|
—
|
|
|
—
|
|
|
3,289
|
|
||||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(83
|
)
|
|
—
|
|
|
(83
|
)
|
||||||
Share-based compensation - restricted shares, net
|
|
(4,087
|
)
|
|
—
|
|
|
220
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
220
|
|
||||||
Cash dividends ($0.14 per share)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,227
|
)
|
|
—
|
|
|
—
|
|
|
(1,227
|
)
|
||||||
Treasury stock purchased
|
|
(230
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
(7
|
)
|
||||||
Balance at June 30, 2018
|
|
8,760,103
|
|
|
$
|
90
|
|
|
$
|
79,126
|
|
|
$
|
103,391
|
|
|
$
|
(1,824
|
)
|
|
$
|
(7,111
|
)
|
|
$
|
173,672
|
|
|
|
Common Shares Outstanding
|
|
Common
Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Treasury
Stock
|
|
Total
|
|||||||||||||
|
|
(In Thousands, Except Share Data)
|
|||||||||||||||||||||||||
Balance at January 1, 2019
|
|
8,785,480
|
|
|
$
|
91
|
|
|
$
|
79,623
|
|
|
$
|
110,310
|
|
|
$
|
(1,684
|
)
|
|
$
|
(7,633
|
)
|
|
$
|
180,707
|
|
Cumulative effect of adoption of ASC Topic 842
|
|
—
|
|
|
—
|
|
|
—
|
|
|
687
|
|
|
—
|
|
|
—
|
|
|
687
|
|
||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,899
|
|
|
—
|
|
|
—
|
|
|
5,899
|
|
||||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
279
|
|
|
—
|
|
|
279
|
|
||||||
Share-based compensation - restricted shares, net
|
|
49,730
|
|
|
—
|
|
|
318
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
318
|
|
||||||
Cash dividends ($0.15 per share)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,312
|
)
|
|
—
|
|
|
—
|
|
|
(1,312
|
)
|
||||||
Treasury stock purchased
|
|
(70,074
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,478
|
)
|
|
(1,478
|
)
|
||||||
Balance at March 31, 2019
|
|
8,765,136
|
|
|
91
|
|
|
79,941
|
|
|
115,584
|
|
|
(1,405
|
)
|
|
(9,111
|
)
|
|
185,100
|
|
||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,572
|
|
|
—
|
|
|
—
|
|
|
6,572
|
|
||||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
319
|
|
|
—
|
|
|
319
|
|
||||||
Share-based compensation - restricted shares, net
|
|
31,151
|
|
|
—
|
|
|
410
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
410
|
|
||||||
Cash dividends ($0.15 per share)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,315
|
)
|
|
—
|
|
|
—
|
|
|
(1,315
|
)
|
||||||
Treasury stock purchased
|
|
(96,831
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,231
|
)
|
|
(2,231
|
)
|
||||||
Balance at June 30, 2019
|
|
8,699,456
|
|
|
$
|
91
|
|
|
$
|
80,351
|
|
|
$
|
120,841
|
|
|
$
|
(1,086
|
)
|
|
$
|
(11,342
|
)
|
|
$
|
188,855
|
|
|
|
For the Six Months Ended June 30,
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
(In Thousands)
|
||||||
Operating activities
|
|
|
|
|
||||
Net income
|
|
$
|
12,472
|
|
|
$
|
6,938
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
||||
Deferred income taxes, net
|
|
(1,245
|
)
|
|
221
|
|
||
Impairment of tax credit investments
|
|
4,102
|
|
|
442
|
|
||
Provision for loan and lease losses
|
|
(736
|
)
|
|
5,054
|
|
||
Depreciation, amortization and accretion, net
|
|
1,437
|
|
|
727
|
|
||
Share-based compensation
|
|
728
|
|
|
506
|
|
||
Gain on sale of available-for-sale securities
|
|
1
|
|
|
—
|
|
||
Increase in value of bank-owned life insurance policies
|
|
(589
|
)
|
|
(589
|
)
|
||
Origination of loans for sale
|
|
(29,116
|
)
|
|
(43,519
|
)
|
||
Sale of loans originated for sale
|
|
30,156
|
|
|
41,280
|
|
||
Gain on sale of loans originated for sale
|
|
(539
|
)
|
|
(543
|
)
|
||
Net gain on foreclosed properties, including impairment valuation
|
|
(21
|
)
|
|
—
|
|
||
Excess tax benefit from share-based compensation
|
|
(11
|
)
|
|
(10
|
)
|
||
Payments on operating leases
|
|
(759
|
)
|
|
—
|
|
||
Net increase in accrued interest receivable and other assets
|
|
(17,612
|
)
|
|
(704
|
)
|
||
Net increase in accrued interest payable and other liabilities
|
|
13,029
|
|
|
1,177
|
|
||
Net cash provided by operating activities
|
|
11,297
|
|
|
10,980
|
|
||
Investing activities
|
|
|
|
|
||||
Proceeds from maturities, redemptions, and paydowns of available-for-sale securities
|
|
12,480
|
|
|
14,738
|
|
||
Proceeds from maturities, redemptions, and paydowns of held-to-maturity securities
|
|
3,176
|
|
|
1,672
|
|
||
Proceeds from sale of available-for-sale securities
|
|
2,026
|
|
|
—
|
|
||
Purchases of available-for-sale securities
|
|
(31,934
|
)
|
|
(26,269
|
)
|
||
Purchases of held-to-maturity securities
|
|
—
|
|
|
(4,867
|
)
|
||
Net increase in loans and leases
|
|
(102,162
|
)
|
|
(96,620
|
)
|
||
Investments in limited partnerships
|
|
(1,250
|
)
|
|
—
|
|
||
Returns of investments in limited partnerships
|
|
280
|
|
|
316
|
|
||
Investment in historic development entities
|
|
(2,137
|
)
|
|
(905
|
)
|
||
Investment in Federal Home Loan Bank stock
|
|
(2,020
|
)
|
|
(7,388
|
)
|
||
Proceeds from the sale of Federal Home Loan Bank stock
|
|
2,540
|
|
|
3,763
|
|
||
Purchases of leasehold improvements and equipment, net
|
|
(11
|
)
|
|
(611
|
)
|
||
Net cash used in investing activities
|
|
(119,012
|
)
|
|
(116,171
|
)
|
||
Financing activities
|
|
|
|
|
||||
Net increase (decrease) in deposits
|
|
74,346
|
|
|
(56,606
|
)
|
||
Repayment of Federal Home Loan Bank advances
|
|
(266,000
|
)
|
|
(490,500
|
)
|
||
Proceeds from Federal Home Loan Bank advances
|
|
265,000
|
|
|
648,000
|
|
||
Net increase in long-term borrowed funds
|
|
35
|
|
|
25
|
|
||
Cash dividends paid
|
|
(2,628
|
)
|
|
(2,453
|
)
|
||
Purchase of treasury stock
|
|
(3,709
|
)
|
|
(11
|
)
|
||
Net cash provided by financing activities
|
|
67,044
|
|
|
98,455
|
|
||
Net decrease in cash and cash equivalents
|
|
(40,671
|
)
|
|
(6,736
|
)
|
||
Cash and cash equivalents at the beginning of the period
|
|
86,546
|
|
|
52,539
|
|
||
Cash and cash equivalents at the end of the period
|
|
$
|
45,875
|
|
|
$
|
45,803
|
|
Supplementary cash flow information
|
|
|
|
|
||||
Cash paid during the period for:
|
|
|
|
|
||||
Interest paid on deposits and borrowings
|
|
$
|
15,744
|
|
|
$
|
9,212
|
|
Income taxes paid
|
|
1,308
|
|
|
646
|
|
||
Non-cash investing and financing activities:
|
|
|
|
|
||||
Transfer from loans to foreclosed properties
|
|
93
|
|
|
415
|
|
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(Dollars in Thousands, Except Share Data)
|
||||||||||||||
Basic earnings per common share
|
|
|
|
|
|
|
|
|
||||||||
Net income
|
|
$
|
6,572
|
|
|
$
|
3,289
|
|
|
$
|
12,472
|
|
|
$
|
6,938
|
|
Less: earnings allocated to participating securities
|
|
151
|
|
|
48
|
|
|
239
|
|
|
102
|
|
||||
Basic earnings allocated to common stockholders
|
|
$
|
6,421
|
|
|
$
|
3,241
|
|
|
$
|
12,233
|
|
|
$
|
6,836
|
|
Weighted-average common shares outstanding, excluding participating securities
|
|
8,569,581
|
|
|
8,631,189
|
|
|
8,584,444
|
|
|
8,631,664
|
|
||||
Basic earnings per common share
|
|
$
|
0.75
|
|
|
$
|
0.38
|
|
|
$
|
1.43
|
|
|
$
|
0.79
|
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per common share
|
|
|
|
|
|
|
|
|
||||||||
Earnings allocated to common stockholders, diluted
|
|
$
|
6,421
|
|
|
$
|
3,241
|
|
|
$
|
12,233
|
|
|
$
|
6,836
|
|
Weighted-average diluted common shares outstanding, excluding participating securities
|
|
8,569,581
|
|
|
8,631,189
|
|
|
8,584,444
|
|
|
8,631,664
|
|
||||
Diluted earnings per common share
|
|
$
|
0.75
|
|
|
$
|
0.38
|
|
|
$
|
1.43
|
|
|
$
|
0.79
|
|
|
|
Number of
Restricted Shares/Units
|
|
Weighted Average
Grant-Date
Fair Value
|
|||
Nonvested balance as of January 1, 2018
|
|
130,441
|
|
|
$
|
21.43
|
|
Granted
|
|
66,498
|
|
|
20.57
|
|
|
Vested
|
|
(46,034
|
)
|
|
21.01
|
|
|
Forfeited
|
|
(19,284
|
)
|
|
22.25
|
|
|
Nonvested balance as of December 31, 2018
|
|
131,621
|
|
|
21.02
|
|
|
Granted
(1)
|
|
81,910
|
|
|
23.56
|
|
|
Vested
|
|
(2,484
|
)
|
|
24.66
|
|
|
Forfeited
|
|
(1,029
|
)
|
|
24.75
|
|
|
Nonvested balance as of June 30, 2019
|
|
210,018
|
|
|
$
|
21.95
|
|
(1)
|
The number of restricted shares/units shown includes the shares that would be granted if the target level of performance is achieved related to the performance based restricted stock units. The number of shares actually issued may vary.
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(In Thousands)
|
||||||||||||||
Share-based compensation expense
|
$
|
410
|
|
|
$
|
220
|
|
|
$
|
728
|
|
|
$
|
506
|
|
|
|
As of June 30, 2019
|
||||||||||||||
|
|
Amortized Cost
|
|
Gross
Unrealized Gains
|
|
Gross
Unrealized Losses
|
|
Fair Value
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government agency securities - government-sponsored enterprises
|
|
$
|
1,000
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1,001
|
|
Municipal securities
|
|
3,498
|
|
|
12
|
|
|
(3
|
)
|
|
3,507
|
|
||||
Mortgage backed securities - government issued
|
|
45,954
|
|
|
559
|
|
|
(159
|
)
|
|
46,354
|
|
||||
Mortgage backed securities - government-sponsored enterprises
|
|
105,016
|
|
|
1,093
|
|
|
(242
|
)
|
|
105,867
|
|
||||
Other securities
|
|
2,205
|
|
|
2
|
|
|
(3
|
)
|
|
2,204
|
|
||||
|
|
$
|
157,673
|
|
|
$
|
1,667
|
|
|
$
|
(407
|
)
|
|
$
|
158,933
|
|
|
|
As of December 31, 2018
|
||||||||||||||
|
|
Amortized Cost
|
|
Gross
Unrealized Gains
|
|
Gross
Unrealized Losses
|
|
Fair Value
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government agency securities - government-sponsored enterprises
|
|
$
|
999
|
|
|
$
|
—
|
|
|
$
|
(9
|
)
|
|
$
|
990
|
|
Municipal securities
|
|
5,953
|
|
|
2
|
|
|
(69
|
)
|
|
5,886
|
|
||||
Mortgage backed securities - government issued
|
|
20,007
|
|
|
47
|
|
|
(426
|
)
|
|
19,628
|
|
||||
Mortgage backed securities - government-sponsored enterprises
|
|
110,928
|
|
|
279
|
|
|
(1,729
|
)
|
|
109,478
|
|
||||
Other securities
|
|
2,450
|
|
|
—
|
|
|
(74
|
)
|
|
2,376
|
|
||||
|
|
$
|
140,337
|
|
|
$
|
328
|
|
|
$
|
(2,307
|
)
|
|
$
|
138,358
|
|
|
|
As of June 30, 2019
|
||||||||||||||
|
|
Amortized Cost
|
|
Gross
Unrealized Gains
|
|
Gross
Unrealized Losses
|
|
Fair Value
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Held-to-maturity:
|
|
|
|
|
|
|
|
|
||||||||
Municipal securities
|
|
$
|
20,010
|
|
|
$
|
312
|
|
|
$
|
—
|
|
|
$
|
20,322
|
|
Mortgage backed securities - government issued
|
|
6,638
|
|
|
32
|
|
|
(15
|
)
|
|
6,655
|
|
||||
Mortgage backed securities - government-sponsored enterprises
|
|
7,871
|
|
|
158
|
|
|
(25
|
)
|
|
8,004
|
|
||||
|
|
$
|
34,519
|
|
|
$
|
502
|
|
|
$
|
(40
|
)
|
|
$
|
34,981
|
|
|
|
As of December 31, 2018
|
||||||||||||||
|
|
Amortized Cost
|
|
Gross
Unrealized Gains
|
|
Gross
Unrealized Losses
|
|
Fair Value
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Held-to-maturity:
|
|
|
|
|
|
|
|
|
||||||||
Municipal securities
|
|
$
|
21,066
|
|
|
$
|
72
|
|
|
$
|
(59
|
)
|
|
$
|
21,079
|
|
Mortgage backed securities - government issued
|
|
7,358
|
|
|
—
|
|
|
(172
|
)
|
|
7,186
|
|
||||
Mortgage backed securities - government-sponsored enterprises
|
|
9,307
|
|
|
2
|
|
|
(165
|
)
|
|
9,144
|
|
||||
|
|
$
|
37,731
|
|
|
$
|
74
|
|
|
$
|
(396
|
)
|
|
$
|
37,409
|
|
|
|
Available-for-Sale
|
|
Held-to-Maturity
|
||||||||||||
|
|
Amortized Cost
|
|
Fair Value
|
|
Amortized Cost
|
|
Fair Value
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Due in one year or less
|
|
$
|
1,423
|
|
|
$
|
1,425
|
|
|
$
|
771
|
|
|
$
|
772
|
|
Due in one year through five years
|
|
18,190
|
|
|
18,241
|
|
|
13,564
|
|
|
13,710
|
|
||||
Due in five through ten years
|
|
31,858
|
|
|
32,147
|
|
|
14,763
|
|
|
15,025
|
|
||||
Due in over ten years
|
|
106,202
|
|
|
107,120
|
|
|
5,421
|
|
|
5,474
|
|
||||
|
|
$
|
157,673
|
|
|
$
|
158,933
|
|
|
$
|
34,519
|
|
|
$
|
34,981
|
|
|
|
As of June 30, 2019
|
||||||||||||||||||||||
|
|
Less than 12 Months
|
|
12 Months or Longer
|
|
Total
|
||||||||||||||||||
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
||||||||||||
|
|
(In Thousands)
|
||||||||||||||||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Municipal securities
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,127
|
|
|
$
|
3
|
|
|
$
|
1,127
|
|
|
$
|
3
|
|
Mortgage backed securities - government issued
|
|
—
|
|
|
—
|
|
|
6,672
|
|
|
159
|
|
|
6,672
|
|
|
159
|
|
||||||
Mortgage backed securities - government-sponsored enterprises
|
|
1,751
|
|
|
—
|
|
|
25,160
|
|
|
242
|
|
|
26,911
|
|
|
242
|
|
||||||
Other securities
|
|
—
|
|
|
—
|
|
|
977
|
|
|
3
|
|
|
977
|
|
|
3
|
|
||||||
|
|
$
|
1,751
|
|
|
$
|
—
|
|
|
$
|
33,936
|
|
|
$
|
407
|
|
|
$
|
35,687
|
|
|
$
|
407
|
|
|
|
As of December 31, 2018
|
||||||||||||||||||||||
|
|
Less than 12 Months
|
|
12 Months or Longer
|
|
Total
|
||||||||||||||||||
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
||||||||||||
|
|
(In Thousands)
|
||||||||||||||||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government agency securities - government-sponsored enterprises
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
990
|
|
|
$
|
9
|
|
|
$
|
990
|
|
|
$
|
9
|
|
Municipal securities
|
|
—
|
|
|
—
|
|
|
4,371
|
|
|
69
|
|
|
4,371
|
|
|
69
|
|
||||||
Mortgage backed securities - government issued
|
|
—
|
|
|
—
|
|
|
13,748
|
|
|
426
|
|
|
13,748
|
|
|
426
|
|
||||||
Mortgage backed securities - government-sponsored enterprises
|
|
8,178
|
|
|
46
|
|
|
69,602
|
|
|
1,683
|
|
|
77,780
|
|
|
1,729
|
|
||||||
Other securities
|
|
238
|
|
|
7
|
|
|
2,138
|
|
|
67
|
|
|
2,376
|
|
|
74
|
|
||||||
|
|
$
|
8,416
|
|
|
$
|
53
|
|
|
$
|
90,849
|
|
|
$
|
2,254
|
|
|
$
|
99,265
|
|
|
$
|
2,307
|
|
|
|
As of June 30, 2019
|
||||||||||||||||||||||
|
|
Less than 12 Months
|
|
12 Months or Longer
|
|
Total
|
||||||||||||||||||
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
||||||||||||
|
|
(In Thousands)
|
||||||||||||||||||||||
Held-to-maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Municipal securities
|
|
$
|
70
|
|
|
$
|
—
|
|
|
$
|
253
|
|
|
$
|
—
|
|
|
$
|
323
|
|
|
$
|
—
|
|
Mortgage backed securities - government issued
|
|
—
|
|
|
—
|
|
|
2,563
|
|
|
15
|
|
|
2,563
|
|
|
15
|
|
||||||
Mortgage backed securities - government-sponsored enterprises
|
|
—
|
|
|
—
|
|
|
2,443
|
|
|
25
|
|
|
2,443
|
|
|
25
|
|
||||||
|
|
$
|
70
|
|
|
$
|
—
|
|
|
$
|
5,259
|
|
|
$
|
40
|
|
|
$
|
5,329
|
|
|
$
|
40
|
|
|
|
As of December 31, 2018
|
||||||||||||||||||||||
|
|
Less than 12 Months
|
|
12 Months or Longer
|
|
Total
|
||||||||||||||||||
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
||||||||||||
|
|
(In Thousands)
|
||||||||||||||||||||||
Held-to-maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Municipal securities
|
|
$
|
6,876
|
|
|
$
|
14
|
|
|
$
|
4,364
|
|
|
$
|
45
|
|
|
$
|
11,240
|
|
|
$
|
59
|
|
Mortgage backed securities - government issued
|
|
—
|
|
|
—
|
|
|
7,186
|
|
|
172
|
|
|
7,186
|
|
|
172
|
|
||||||
Mortgage backed securities - government-sponsored enterprises
|
|
4,038
|
|
|
24
|
|
|
4,338
|
|
|
141
|
|
|
8,376
|
|
|
165
|
|
||||||
|
|
$
|
10,914
|
|
|
$
|
38
|
|
|
$
|
15,888
|
|
|
$
|
358
|
|
|
$
|
26,802
|
|
|
$
|
396
|
|
|
|
June 30,
2019 |
|
December 31,
2018 |
||||
|
|
(In Thousands)
|
||||||
Commercial real estate:
|
|
|
|
|
||||
Commercial real estate — owner occupied
|
|
$
|
210,471
|
|
|
$
|
203,476
|
|
Commercial real estate — non-owner occupied
|
|
477,740
|
|
|
484,427
|
|
||
Land development
|
|
49,000
|
|
|
42,666
|
|
||
Construction
|
|
185,347
|
|
|
161,562
|
|
||
Multi-family
|
|
195,363
|
|
|
167,868
|
|
||
1-4 family
|
|
31,656
|
|
|
34,340
|
|
||
Total commercial real estate
|
|
1,149,577
|
|
|
1,094,339
|
|
||
Commercial and industrial
|
|
510,448
|
|
|
462,321
|
|
||
Direct financing leases, net
|
|
30,365
|
|
|
33,170
|
|
||
Consumer and other:
|
|
|
|
|
||||
Home equity and second mortgages
|
|
7,513
|
|
|
8,438
|
|
||
Other
|
|
22,896
|
|
|
20,789
|
|
||
Total consumer and other
|
|
30,409
|
|
|
29,227
|
|
||
Total gross loans and leases receivable
|
|
1,720,799
|
|
|
1,619,057
|
|
||
Less:
|
|
|
|
|
||||
Allowance for loan and lease losses
|
|
19,819
|
|
|
20,425
|
|
||
Deferred loan fees
|
|
823
|
|
|
1,402
|
|
||
Loans and leases receivable, net
|
|
$
|
1,700,157
|
|
|
$
|
1,597,230
|
|
|
|
June 30,
2019 |
|
December 31,
2018 |
||||
|
|
(In Thousands)
|
||||||
Retained, unguaranteed portions of sold SBA loans
|
|
$
|
22,578
|
|
|
$
|
23,898
|
|
Other SBA loans
(1)
|
|
25,039
|
|
|
22,024
|
|
||
Total SBA loans
|
|
$
|
47,617
|
|
|
$
|
45,922
|
|
(1)
|
Primarily consisted of SBA CAPLine, Express, and impaired loans that were repurchased from the secondary market, all of which are not saleable.
|
|
|
June 30, 2019
|
||||||||||||||||||
|
|
Category
|
|
|
||||||||||||||||
|
|
I
|
|
II
|
|
III
|
|
IV
|
|
Total
|
||||||||||
|
|
(Dollars in Thousands)
|
||||||||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate — owner occupied
|
|
$
|
178,451
|
|
|
$
|
16,454
|
|
|
$
|
10,402
|
|
|
$
|
5,164
|
|
|
$
|
210,471
|
|
Commercial real estate — non-owner occupied
|
|
436,422
|
|
|
39,506
|
|
|
1,812
|
|
|
—
|
|
|
477,740
|
|
|||||
Land development
|
|
46,315
|
|
|
928
|
|
|
—
|
|
|
1,757
|
|
|
49,000
|
|
|||||
Construction
|
|
185,181
|
|
|
—
|
|
|
166
|
|
|
—
|
|
|
185,347
|
|
|||||
Multi-family
|
|
183,788
|
|
|
11,575
|
|
|
—
|
|
|
—
|
|
|
195,363
|
|
|||||
1-4 family
|
|
30,853
|
|
|
92
|
|
|
211
|
|
|
500
|
|
|
31,656
|
|
|||||
Total commercial real estate
|
|
1,061,010
|
|
|
68,555
|
|
|
12,591
|
|
|
7,421
|
|
|
1,149,577
|
|
|||||
Commercial and industrial
|
|
411,133
|
|
|
27,855
|
|
|
53,050
|
|
|
18,410
|
|
|
510,448
|
|
|||||
Direct financing leases, net
|
|
23,196
|
|
|
3,816
|
|
|
3,353
|
|
|
—
|
|
|
30,365
|
|
|||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Home equity and second mortgages
|
|
7,346
|
|
|
71
|
|
|
94
|
|
|
2
|
|
|
7,513
|
|
|||||
Other
|
|
22,714
|
|
|
—
|
|
|
—
|
|
|
182
|
|
|
22,896
|
|
|||||
Total consumer and other
|
|
30,060
|
|
|
71
|
|
|
94
|
|
|
184
|
|
|
30,409
|
|
|||||
Total gross loans and leases receivable
|
|
$
|
1,525,399
|
|
|
$
|
100,297
|
|
|
$
|
69,088
|
|
|
$
|
26,015
|
|
|
$
|
1,720,799
|
|
Category as a % of total portfolio
|
|
88.64
|
%
|
|
5.83
|
%
|
|
4.02
|
%
|
|
1.51
|
%
|
|
100.00
|
%
|
|
|
December 31, 2018
|
||||||||||||||||||
|
|
Category
|
|
|
||||||||||||||||
|
|
I
|
|
II
|
|
III
|
|
IV
|
|
Total
|
||||||||||
|
|
(Dollars in Thousands)
|
||||||||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate — owner occupied
|
|
$
|
177,222
|
|
|
$
|
15,085
|
|
|
$
|
5,506
|
|
|
$
|
5,663
|
|
|
$
|
203,476
|
|
Commercial real estate — non-owner occupied
|
|
458,185
|
|
|
24,873
|
|
|
1,338
|
|
|
31
|
|
|
484,427
|
|
|||||
Land development
|
|
39,472
|
|
|
981
|
|
|
—
|
|
|
2,213
|
|
|
42,666
|
|
|||||
Construction
|
|
161,360
|
|
|
—
|
|
|
202
|
|
|
—
|
|
|
161,562
|
|
|||||
Multi-family
|
|
167,868
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
167,868
|
|
|||||
1-4 family
|
|
32,004
|
|
|
1,451
|
|
|
707
|
|
|
178
|
|
|
34,340
|
|
|||||
Total commercial real estate
|
|
1,036,111
|
|
|
42,390
|
|
|
7,753
|
|
|
8,085
|
|
|
1,094,339
|
|
|||||
Commercial and industrial
|
|
374,371
|
|
|
19,370
|
|
|
51,474
|
|
|
17,106
|
|
|
462,321
|
|
|||||
Direct financing leases, net
|
|
26,013
|
|
|
6,090
|
|
|
1,067
|
|
|
—
|
|
|
33,170
|
|
|||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Home equity and second mortgages
|
|
8,385
|
|
|
3
|
|
|
50
|
|
|
—
|
|
|
8,438
|
|
|||||
Other
|
|
20,499
|
|
|
—
|
|
|
—
|
|
|
290
|
|
|
20,789
|
|
|||||
Total consumer and other
|
|
28,884
|
|
|
3
|
|
|
50
|
|
|
290
|
|
|
29,227
|
|
|||||
Total gross loans and leases receivable
|
|
$
|
1,465,379
|
|
|
$
|
67,853
|
|
|
$
|
60,344
|
|
|
$
|
25,481
|
|
|
$
|
1,619,057
|
|
Category as a % of total portfolio
|
|
90.51
|
%
|
|
4.19
|
%
|
|
3.73
|
%
|
|
1.57
|
%
|
|
100.00
|
%
|
|
|
June 30, 2019
|
|||||||||||||||||||||||
|
|
30-59
Days Past Due |
|
60-89
Days Past Due |
|
Greater
Than 90 Days Past Due |
|
Total Past Due
|
|
Current
|
|
Total Loans and Leases
|
|||||||||||||
|
|
(Dollars in Thousands)
|
|||||||||||||||||||||||
Accruing loans and leases
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Owner occupied
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
205,307
|
|
|
$
|
205,307
|
|
|
Non-owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
477,740
|
|
|
477,740
|
|
|||||||
Land development
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47,243
|
|
|
47,243
|
|
|||||||
Construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
185,347
|
|
|
185,347
|
|
|||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
195,363
|
|
|
195,363
|
|
|||||||
1-4 family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31,307
|
|
|
31,307
|
|
|||||||
Commercial and industrial
|
|
1,996
|
|
|
14
|
|
|
—
|
|
|
2,010
|
|
|
490,028
|
|
|
492,038
|
|
|||||||
Direct financing leases, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30,365
|
|
|
30,365
|
|
|||||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home equity and second mortgages
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,511
|
|
|
7,511
|
|
|||||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22,714
|
|
|
22,714
|
|
|||||||
Total
|
|
1,996
|
|
|
14
|
|
|
—
|
|
|
2,010
|
|
|
1,692,925
|
|
|
1,694,935
|
|
|||||||
Non-accruing loans and leases
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Owner occupied
|
|
—
|
|
|
350
|
|
|
4,814
|
|
|
5,164
|
|
|
—
|
|
|
5,164
|
|
|||||||
Non-owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Land development
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,757
|
|
|
1,757
|
|
|||||||
Construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
1-4 family
|
|
349
|
|
|
—
|
|
|
—
|
|
|
349
|
|
|
—
|
|
|
349
|
|
|||||||
Commercial and industrial
|
|
86
|
|
|
83
|
|
|
9,996
|
|
|
10,165
|
|
|
8,245
|
|
|
18,410
|
|
|||||||
Direct financing leases, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Home equity and second mortgages
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|||||||
Other
|
|
—
|
|
|
—
|
|
|
170
|
|
|
170
|
|
|
12
|
|
|
182
|
|
|||||||
Total
|
|
435
|
|
|
433
|
|
|
14,982
|
|
|
15,850
|
|
|
10,014
|
|
—
|
|
25,864
|
|
||||||
Total loans and leases
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Owner occupied
|
|
—
|
|
|
350
|
|
|
4,814
|
|
|
5,164
|
|
|
205,307
|
|
|
210,471
|
|
|||||||
Non-owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
477,740
|
|
|
477,740
|
|
|||||||
Land development
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
49,000
|
|
|
49,000
|
|
|||||||
Construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
185,347
|
|
|
185,347
|
|
|||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
195,363
|
|
|
195,363
|
|
|||||||
1-4 family
|
|
349
|
|
|
—
|
|
|
—
|
|
|
349
|
|
|
31,307
|
|
|
31,656
|
|
|||||||
Commercial and industrial
|
|
2,082
|
|
|
97
|
|
|
9,996
|
|
|
12,175
|
|
|
498,273
|
|
|
510,448
|
|
|||||||
Direct financing leases, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30,365
|
|
|
30,365
|
|
|||||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Home equity and second mortgages
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
7,511
|
|
|
7,513
|
|
|||||||
Other
|
|
—
|
|
|
—
|
|
|
170
|
|
|
170
|
|
|
22,726
|
|
|
22,896
|
|
|||||||
Total
|
|
$
|
2,431
|
|
|
$
|
447
|
|
|
$
|
14,982
|
|
|
$
|
17,860
|
|
|
$
|
1,702,939
|
|
|
$
|
1,720,799
|
|
|
Percent of portfolio
|
|
0.14
|
%
|
|
0.03
|
%
|
|
0.87
|
%
|
|
1.04
|
%
|
|
98.96
|
%
|
|
100.00
|
%
|
|
|
December 31, 2018
|
||||||||||||||||||||||
|
|
30-59
Days Past Due |
|
60-89
Days Past Due |
|
Greater
Than 90 Days Past Due |
|
Total Past Due
|
|
Current
|
|
Total Loans and Leases
|
||||||||||||
|
|
(Dollars in Thousands)
|
||||||||||||||||||||||
Accruing loans and leases
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owner occupied
|
|
$
|
157
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
157
|
|
|
$
|
197,656
|
|
|
$
|
197,813
|
|
Non-owner occupied
|
|
—
|
|
|
2,272
|
|
|
—
|
|
|
2,272
|
|
|
482,124
|
|
|
484,396
|
|
||||||
Land development
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
40,453
|
|
|
40,453
|
|
||||||
Construction
|
|
14,824
|
|
|
—
|
|
|
—
|
|
|
14,824
|
|
|
146,738
|
|
|
161,562
|
|
||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
167,868
|
|
|
167,868
|
|
||||||
1-4 family
|
|
363
|
|
|
60
|
|
|
—
|
|
|
423
|
|
|
33,917
|
|
|
34,340
|
|
||||||
Commercial and industrial
|
|
826
|
|
|
247
|
|
|
—
|
|
|
1,073
|
|
|
444,144
|
|
|
445,217
|
|
||||||
Direct financing leases, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
33,170
|
|
|
33,170
|
|
||||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home equity and second mortgages
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,438
|
|
|
8,438
|
|
||||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20,499
|
|
|
20,499
|
|
||||||
Total
|
|
16,170
|
|
|
2,579
|
|
|
—
|
|
|
18,749
|
|
|
1,575,007
|
|
|
1,593,756
|
|
||||||
Non-accruing loans and leases
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owner occupied
|
|
483
|
|
|
—
|
|
|
5,180
|
|
|
5,663
|
|
|
—
|
|
|
5,663
|
|
||||||
Non-owner occupied
|
|
—
|
|
|
—
|
|
|
31
|
|
|
31
|
|
|
—
|
|
|
31
|
|
||||||
Land development
|
|
—
|
|
|
—
|
|
|
119
|
|
|
119
|
|
|
2,094
|
|
|
2,213
|
|
||||||
Construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
1-4 family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Commercial and industrial
|
|
2,322
|
|
|
—
|
|
|
12,108
|
|
|
14,430
|
|
|
2,674
|
|
|
17,104
|
|
||||||
Direct financing leases, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home equity and second mortgages
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Other
|
|
—
|
|
|
—
|
|
|
279
|
|
|
279
|
|
|
11
|
|
|
290
|
|
||||||
Total
|
|
2,805
|
|
|
—
|
|
|
17,717
|
|
|
20,522
|
|
|
4,779
|
|
|
25,301
|
|
||||||
Total loans and leases
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owner occupied
|
|
640
|
|
|
—
|
|
|
5,180
|
|
|
5,820
|
|
|
197,656
|
|
|
203,476
|
|
||||||
Non-owner occupied
|
|
—
|
|
|
2,272
|
|
|
31
|
|
|
2,303
|
|
|
482,124
|
|
|
484,427
|
|
||||||
Land development
|
|
—
|
|
|
—
|
|
|
119
|
|
|
119
|
|
|
42,547
|
|
|
42,666
|
|
||||||
Construction
|
|
14,824
|
|
|
—
|
|
|
—
|
|
|
14,824
|
|
|
146,738
|
|
|
161,562
|
|
||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
167,868
|
|
|
167,868
|
|
||||||
1-4 family
|
|
363
|
|
|
60
|
|
|
—
|
|
|
423
|
|
|
33,917
|
|
|
34,340
|
|
||||||
Commercial and industrial
|
|
3,148
|
|
|
247
|
|
|
12,108
|
|
|
15,503
|
|
|
446,818
|
|
|
462,321
|
|
||||||
Direct financing leases, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
33,170
|
|
|
33,170
|
|
||||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home equity and second mortgages
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,438
|
|
|
8,438
|
|
||||||
Other
|
|
—
|
|
|
—
|
|
|
279
|
|
|
279
|
|
|
20,510
|
|
|
20,789
|
|
||||||
Total
|
|
$
|
18,975
|
|
|
$
|
2,579
|
|
|
$
|
17,717
|
|
|
$
|
39,271
|
|
|
$
|
1,579,786
|
|
|
$
|
1,619,057
|
|
Percent of portfolio
|
|
1.17
|
%
|
|
0.16
|
%
|
|
1.09
|
%
|
|
2.42
|
%
|
|
97.58
|
%
|
|
100.00
|
%
|
|
|
June 30,
2019 |
|
December 31,
2018 |
||||
|
|
(In Thousands)
|
||||||
Non-accrual loans and leases
|
|
|
|
|
||||
Commercial real estate:
|
|
|
|
|
||||
Commercial real estate — owner occupied
|
|
$
|
5,164
|
|
|
$
|
5,663
|
|
Commercial real estate — non-owner occupied
|
|
—
|
|
|
31
|
|
||
Land development
|
|
1,757
|
|
|
2,213
|
|
||
Construction
|
|
—
|
|
|
—
|
|
||
Multi-family
|
|
—
|
|
|
—
|
|
||
1-4 family
|
|
349
|
|
|
—
|
|
||
Total non-accrual commercial real estate
|
|
7,270
|
|
|
7,907
|
|
||
Commercial and industrial
|
|
18,410
|
|
|
17,104
|
|
||
Direct financing leases, net
|
|
—
|
|
|
—
|
|
||
Consumer and other:
|
|
|
|
|
||||
Home equity and second mortgages
|
|
2
|
|
|
—
|
|
||
Other
|
|
182
|
|
|
290
|
|
||
Total non-accrual consumer and other loans
|
|
184
|
|
|
290
|
|
||
Total non-accrual loans and leases
|
|
25,864
|
|
|
25,301
|
|
||
Foreclosed properties, net
|
|
2,660
|
|
|
2,547
|
|
||
Total non-performing assets
|
|
28,524
|
|
|
27,848
|
|
||
Performing troubled debt restructurings
|
|
151
|
|
|
180
|
|
||
Total impaired assets
|
|
$
|
28,675
|
|
|
$
|
28,028
|
|
|
|
June 30,
2019 |
|
December 31,
2018 |
||
Total non-accrual loans and leases to gross loans and leases
|
|
1.50
|
%
|
|
1.56
|
%
|
Total non-performing assets to total gross loans and leases plus foreclosed properties, net
|
|
1.66
|
|
|
1.72
|
|
Total non-performing assets to total assets
|
|
1.38
|
|
|
1.42
|
|
Allowance for loan and lease losses to gross loans and leases
|
|
1.15
|
|
|
1.26
|
|
Allowance for loan and lease losses to non-accrual loans and leases
|
|
76.64
|
|
|
80.73
|
|
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||||||||
|
|
2019
|
||||||||||||||||||||
|
|
Number of Loans
|
|
Pre-Modification
Recorded
Investment
|
|
Post-Modification
Recorded
Investment
|
|
Number of Loans
|
|
Pre-Modification
Recorded
Investment
|
|
Post-Modification
Recorded
Investment
|
||||||||||
|
|
(Dollars in Thousands)
|
||||||||||||||||||||
Commercial and industrial
|
|
9
|
|
|
$
|
5,281
|
|
|
$
|
5,281
|
|
|
13
|
|
|
$
|
7,359
|
|
|
$
|
7,284
|
|
|
|
As of and for the Six Months Ended June 30, 2019
|
|||||||||||||||||||||||||||||
|
|
Recorded
Investment (1) |
|
Unpaid
Principal Balance |
|
Impairment
Reserve |
|
Average
Recorded Investment (2) |
|
Foregone
Interest Income |
|
Interest
Income Recognized |
|
Net
Foregone Interest Income |
|||||||||||||||||
|
|
(In Thousands)
|
|||||||||||||||||||||||||||||
With no impairment reserve recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Owner occupied
|
|
$
|
773
|
|
|
$
|
773
|
|
|
$
|
—
|
|
|
$
|
4,579
|
|
|
$
|
38
|
|
|
$
|
355
|
|
|
$
|
(317
|
)
|
|||
Non-owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
116
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||||||
Land development
|
|
1,757
|
|
|
6,054
|
|
|
—
|
|
|
2,072
|
|
|
30
|
|
|
6
|
|
|
24
|
|
||||||||||
Construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
1-4 family
|
|
500
|
|
|
506
|
|
|
—
|
|
|
228
|
|
|
8
|
|
|
33
|
|
|
(25
|
)
|
||||||||||
Commercial and industrial
|
|
4,822
|
|
|
5,986
|
|
|
—
|
|
|
13,094
|
|
|
367
|
|
|
308
|
|
|
59
|
|
||||||||||
Direct financing leases, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Home equity and second mortgages
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
(7
|
)
|
||||||||||
Other
|
|
170
|
|
|
836
|
|
|
—
|
|
|
210
|
|
|
25
|
|
|
—
|
|
|
25
|
|
||||||||||
Total
|
|
8,024
|
|
|
14,157
|
|
|
—
|
|
|
20,299
|
|
|
469
|
|
|
709
|
|
|
(240
|
)
|
||||||||||
With impairment reserve recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Owner occupied
|
|
4,391
|
|
|
5,750
|
|
|
809
|
|
|
705
|
|
|
214
|
|
|
—
|
|
|
214
|
|
||||||||||
Non-owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Land development
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
|||||||
Construction
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
|||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
1-4 family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Commercial and industrial
|
|
13,588
|
|
|
14,246
|
|
|
3,184
|
|
|
3,489
|
|
|
728
|
|
|
—
|
|
|
728
|
|
||||||||||
Direct financing leases, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Home equity and second mortgages
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Other
|
|
12
|
|
|
12
|
|
|
12
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Total
|
|
17,991
|
|
|
20,008
|
|
|
4,005
|
|
|
4,209
|
|
|
942
|
|
|
—
|
|
|
942
|
|
||||||||||
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Owner occupied
|
|
5,164
|
|
|
6,523
|
|
|
809
|
|
|
5,284
|
|
|
252
|
|
|
355
|
|
|
(103
|
)
|
||||||||||
Non-owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
116
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||||||
Land development
|
|
1,757
|
|
|
6,054
|
|
|
—
|
|
|
2,072
|
|
|
30
|
|
|
6
|
|
|
24
|
|
||||||||||
Construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
1-4 family
|
|
500
|
|
|
506
|
|
|
—
|
|
|
228
|
|
|
8
|
|
|
33
|
|
|
(25
|
)
|
||||||||||
Commercial and industrial
|
|
18,410
|
|
|
20,232
|
|
|
3,184
|
|
|
16,583
|
|
|
1,095
|
|
|
308
|
|
|
787
|
|
||||||||||
Direct financing leases, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Home equity and second mortgages
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
(7
|
)
|
||||||||||
Other
|
|
182
|
|
|
848
|
|
|
12
|
|
|
225
|
|
|
25
|
|
|
—
|
|
|
25
|
|
||||||||||
Grand total
|
|
$
|
26,015
|
|
|
$
|
34,165
|
|
|
$
|
4,005
|
|
|
$
|
24,508
|
|
|
$
|
1,411
|
|
|
$
|
709
|
|
|
$
|
702
|
|
(1)
|
The recorded investment represents the unpaid principal balance net of any partial charge-offs.
|
(2)
|
Average recorded investment is calculated primarily using daily average balances.
|
|
|
As of and for the Year Ended December 31, 2018
|
||||||||||||||||||||||||||
|
|
Recorded
Investment
(1)
|
|
Unpaid
Principal
Balance
|
|
Impairment
Reserve
|
|
Average
Recorded
Investment
(2)
|
|
Foregone
Interest
Income
|
|
Interest
Income
Recognized
|
|
Net
Foregone
Interest
Income
|
||||||||||||||
|
|
(In Thousands)
|
||||||||||||||||||||||||||
With no impairment reserve recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Owner occupied
|
|
$
|
1,273
|
|
|
$
|
1,273
|
|
|
$
|
—
|
|
|
$
|
6,638
|
|
|
$
|
756
|
|
|
$
|
197
|
|
|
$
|
559
|
|
Non-owner occupied
|
|
31
|
|
|
72
|
|
|
—
|
|
|
33
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|||||||
Land development
|
|
2,213
|
|
|
6,510
|
|
|
—
|
|
|
2,366
|
|
|
68
|
|
|
—
|
|
|
68
|
|
|||||||
Construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,148
|
|
|
219
|
|
|
—
|
|
|
219
|
|
|||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
1-4 family
|
|
178
|
|
|
183
|
|
|
—
|
|
|
808
|
|
|
42
|
|
|
81
|
|
|
(39
|
)
|
|||||||
Commercial and industrial
|
|
6,828
|
|
|
7,527
|
|
|
—
|
|
|
8,809
|
|
|
1,058
|
|
|
980
|
|
|
78
|
|
|||||||
Direct financing leases, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity and second mortgages
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
46
|
|
|
(46
|
)
|
|||||||
Other
|
|
279
|
|
|
945
|
|
|
—
|
|
|
305
|
|
|
55
|
|
|
—
|
|
|
55
|
|
|||||||
Total
|
|
10,802
|
|
|
16,510
|
|
|
—
|
|
|
21,108
|
|
|
2,200
|
|
|
1,304
|
|
|
896
|
|
|||||||
With impairment reserve recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Owner occupied
|
|
4,390
|
|
|
5,749
|
|
|
675
|
|
|
635
|
|
|
182
|
|
|
—
|
|
|
182
|
|
|||||||
Non-owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Land development
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
1-4 family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Commercial and industrial
|
|
10,278
|
|
|
10,278
|
|
|
3,710
|
|
|
4,687
|
|
|
1,096
|
|
|
—
|
|
|
1,096
|
|
|||||||
Direct financing leases, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity and second mortgages
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Other
|
|
11
|
|
|
11
|
|
|
11
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Total
|
|
14,679
|
|
|
16,038
|
|
|
4,396
|
|
|
5,323
|
|
|
1,278
|
|
|
—
|
|
|
1,278
|
|
|||||||
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Owner occupied
|
|
5,663
|
|
|
7,022
|
|
|
675
|
|
|
7,273
|
|
|
938
|
|
|
197
|
|
|
741
|
|
|||||||
Non-owner occupied
|
|
31
|
|
|
72
|
|
|
—
|
|
|
33
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|||||||
Land development
|
|
2,213
|
|
|
6,510
|
|
|
—
|
|
|
2,366
|
|
|
68
|
|
|
—
|
|
|
68
|
|
|||||||
Construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,148
|
|
|
219
|
|
|
—
|
|
|
219
|
|
|||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
1-4 family
|
|
178
|
|
|
183
|
|
|
—
|
|
|
808
|
|
|
42
|
|
|
81
|
|
|
(39
|
)
|
|||||||
Commercial and industrial
|
|
17,106
|
|
|
17,805
|
|
|
3,710
|
|
|
13,496
|
|
|
2,154
|
|
|
980
|
|
|
1,174
|
|
|||||||
Direct financing leases, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity and second mortgages
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
46
|
|
|
(46
|
)
|
|||||||
Other
|
|
290
|
|
|
956
|
|
|
11
|
|
|
306
|
|
|
55
|
|
|
—
|
|
|
55
|
|
|||||||
Grand total
|
|
$
|
25,481
|
|
|
$
|
32,548
|
|
|
$
|
4,396
|
|
|
$
|
26,431
|
|
|
$
|
3,478
|
|
|
$
|
1,304
|
|
|
$
|
2,174
|
|
(1)
|
The recorded investment represents the unpaid principal balance net of any partial charge-offs.
|
(2)
|
Average recorded investment is calculated primarily using daily average balances.
|
|
|
As of and for the Three Months Ended June 30, 2019
|
||||||||||||||
|
|
Commercial
Real Estate
|
|
Commercial
and
Industrial
|
|
Consumer
and Other
|
|
Total
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Beginning balance
|
|
$
|
11,205
|
|
|
$
|
8,485
|
|
|
$
|
759
|
|
|
$
|
20,449
|
|
Charge-offs
|
|
—
|
|
|
(13
|
)
|
|
(2
|
)
|
|
(15
|
)
|
||||
Recoveries
|
|
72
|
|
|
72
|
|
|
25
|
|
|
169
|
|
||||
Net recoveries
|
|
72
|
|
|
59
|
|
|
23
|
|
|
154
|
|
||||
Provision for loan and lease losses
|
|
(8
|
)
|
|
(652
|
)
|
|
(124
|
)
|
|
(784
|
)
|
||||
Ending balance
|
|
$
|
11,269
|
|
|
$
|
7,892
|
|
|
$
|
658
|
|
|
$
|
19,819
|
|
|
|
As of and for the Three Months Ended June 30, 2018
|
||||||||||||||
|
|
Commercial
Real Estate
|
|
Commercial
and
Industrial
|
|
Consumer
and Other
|
|
Total
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Beginning balance
|
|
$
|
9,990
|
|
|
$
|
8,151
|
|
|
$
|
497
|
|
|
$
|
18,638
|
|
Charge-offs
|
|
(121
|
)
|
|
(168
|
)
|
|
(17
|
)
|
|
(306
|
)
|
||||
Recoveries
|
|
2
|
|
|
17
|
|
|
2
|
|
|
21
|
|
||||
Net charge-offs
|
|
(119
|
)
|
|
(151
|
)
|
|
(15
|
)
|
|
(285
|
)
|
||||
Provision for loan and lease losses
|
|
1,276
|
|
|
1,237
|
|
|
66
|
|
|
2,579
|
|
||||
Ending balance
|
|
$
|
11,147
|
|
|
$
|
9,237
|
|
|
$
|
548
|
|
|
$
|
20,932
|
|
|
|
As of and for the Six Months Ended June 30, 2019
|
||||||||||||||
|
|
Commercial
Real Estate
|
|
Commercial
and
Industrial
|
|
Consumer
and Other
|
|
Total
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Beginning balance
|
|
$
|
11,662
|
|
|
$
|
8,079
|
|
|
$
|
684
|
|
|
$
|
20,425
|
|
Charge-offs
|
|
—
|
|
|
(61
|
)
|
|
(2
|
)
|
|
(63
|
)
|
||||
Recoveries
|
|
73
|
|
|
92
|
|
|
28
|
|
|
193
|
|
||||
Net recoveries
|
|
73
|
|
|
31
|
|
|
26
|
|
|
130
|
|
||||
Provision for loan and lease losses
|
|
(466
|
)
|
|
(218
|
)
|
|
(52
|
)
|
|
(736
|
)
|
||||
Ending balance
|
|
$
|
11,269
|
|
|
$
|
7,892
|
|
|
$
|
658
|
|
|
$
|
19,819
|
|
|
|
As of and for the Six Months Ended June 30, 2018
|
||||||||||||||
|
|
Commercial
Real Estate
|
|
Commercial
and
Industrial
|
|
Consumer
and Other
|
|
Total
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Beginning balance
|
|
$
|
10,131
|
|
|
$
|
8,225
|
|
|
$
|
407
|
|
|
$
|
18,763
|
|
Charge-offs
|
|
(2,296
|
)
|
|
(657
|
)
|
|
(37
|
)
|
|
(2,990
|
)
|
||||
Recoveries
|
|
15
|
|
|
19
|
|
|
71
|
|
|
105
|
|
||||
Net (charge-offs) recoveries
|
|
(2,281
|
)
|
|
(638
|
)
|
|
34
|
|
|
(2,885
|
)
|
||||
Provision for loan and lease losses
|
|
3,297
|
|
|
1,650
|
|
|
107
|
|
|
5,054
|
|
||||
Ending balance
|
|
$
|
11,147
|
|
|
$
|
9,237
|
|
|
$
|
548
|
|
|
$
|
20,932
|
|
|
|
As of June 30, 2019
|
||||||||||||||
|
|
Commercial
Real Estate
|
|
Commercial
and
Industrial
|
|
Consumer
and Other
|
|
Total
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Allowance for loan and lease losses:
|
|
|
|
|
|
|
|
|
||||||||
Collectively evaluated for impairment
|
|
$
|
10,460
|
|
|
$
|
4,708
|
|
|
$
|
646
|
|
|
$
|
15,814
|
|
Individually evaluated for impairment
|
|
809
|
|
|
3,184
|
|
|
12
|
|
|
4,005
|
|
||||
Loans acquired with deteriorated credit quality
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
|
$
|
11,269
|
|
|
$
|
7,892
|
|
|
$
|
658
|
|
|
$
|
19,819
|
|
Loans and lease receivables:
|
|
|
|
|
|
|
|
|
||||||||
Collectively evaluated for impairment
|
|
$
|
1,142,156
|
|
|
$
|
522,403
|
|
|
$
|
30,225
|
|
|
$
|
1,694,784
|
|
Individually evaluated for impairment
|
|
7,342
|
|
|
18,409
|
|
|
184
|
|
|
25,935
|
|
||||
Loans acquired with deteriorated credit quality
|
|
79
|
|
|
1
|
|
|
—
|
|
|
80
|
|
||||
Total
|
|
$
|
1,149,577
|
|
|
$
|
540,813
|
|
|
$
|
30,409
|
|
|
$
|
1,720,799
|
|
|
|
As of December 31, 2018
|
||||||||||||||
|
|
Commercial
Real Estate
|
|
Commercial
and
Industrial
|
|
Consumer
and Other
|
|
Total
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Allowance for loan and lease losses:
|
|
|
|
|
|
|
|
|
||||||||
Collectively evaluated for impairment
|
|
$
|
10,987
|
|
|
$
|
4,369
|
|
|
$
|
673
|
|
|
$
|
16,029
|
|
Individually evaluated for impairment
|
|
675
|
|
|
3,710
|
|
|
11
|
|
|
4,396
|
|
||||
Loans acquired with deteriorated credit quality
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
|
$
|
11,662
|
|
|
$
|
8,079
|
|
|
$
|
684
|
|
|
$
|
20,425
|
|
Loans and lease receivables:
|
|
|
|
|
|
|
|
|
||||||||
Collectively evaluated for impairment
|
|
$
|
1,086,254
|
|
|
$
|
478,385
|
|
|
$
|
28,937
|
|
|
$
|
1,593,576
|
|
Individually evaluated for impairment
|
|
7,914
|
|
|
17,104
|
|
|
290
|
|
|
25,308
|
|
||||
Loans acquired with deteriorated credit quality
|
|
171
|
|
|
2
|
|
|
—
|
|
|
173
|
|
||||
Total
|
|
$
|
1,094,339
|
|
|
$
|
495,491
|
|
|
$
|
29,227
|
|
|
$
|
1,619,057
|
|
|
|
As of and for the Three Months Ended June 30,
|
|
As of and for the Six Months Ended June 30,
|
||||
|
|
2019
|
||||||
|
|
(Dollars in Thousands)
|
||||||
Total operating lease cost
|
|
$
|
391
|
|
|
$
|
781
|
|
|
|
|
|
|
||||
Weighted-average remaining lease term (in years)
|
|
|
|
6.91
|
|
|||
Weighted-average discount rate
|
|
|
|
3.11
|
%
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
|
|
(In Thousands)
|
||||||
Accrued interest receivable
|
|
$
|
6,387
|
|
|
$
|
5,684
|
|
Net deferred tax asset
|
|
3,137
|
|
|
3,172
|
|
||
Investment in historic development entities
|
|
2,016
|
|
|
1,653
|
|
||
Investment in a community development entity
|
|
5,826
|
|
|
6,081
|
|
||
Investment in limited partnerships
|
|
5,434
|
|
|
4,176
|
|
||
Investment in Trust II
|
|
315
|
|
|
315
|
|
||
Fair value of interest rate swaps
|
|
16,409
|
|
|
4,637
|
|
||
Prepaid expenses
|
|
2,903
|
|
|
2,894
|
|
||
Other assets
|
|
9,381
|
|
|
6,039
|
|
||
Total accrued interest receivable and other assets
|
|
$
|
51,808
|
|
|
$
|
34,651
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||
|
|
Balance
|
|
Average
Balance
|
|
Average Rate
|
|
Balance
|
|
Average
Balance
|
|
Average Rate
|
||||||||||
|
|
(Dollars in Thousands)
|
||||||||||||||||||||
Non-interest-bearing transaction accounts
|
|
$
|
301,914
|
|
|
$
|
255,691
|
|
|
—
|
%
|
|
$
|
280,769
|
|
|
$
|
241,529
|
|
|
—
|
%
|
Interest-bearing transaction accounts
|
|
244,608
|
|
|
224,873
|
|
|
1.65
|
|
|
229,612
|
|
|
269,943
|
|
|
0.99
|
|
||||
Money market accounts
|
|
596,520
|
|
|
574,666
|
|
|
1.87
|
|
|
516,045
|
|
|
491,756
|
|
|
1.09
|
|
||||
Certificates of deposit
|
|
147,216
|
|
|
162,082
|
|
|
2.45
|
|
|
153,022
|
|
|
94,172
|
|
|
1.70
|
|
||||
Wholesale deposits
|
|
239,387
|
|
|
259,379
|
|
|
2.19
|
|
|
275,851
|
|
|
302,440
|
|
|
1.95
|
|
||||
Total deposits
|
|
$
|
1,529,645
|
|
|
$
|
1,476,691
|
|
|
1.63
|
|
|
$
|
1,455,299
|
|
|
$
|
1,399,840
|
|
|
1.11
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||
|
|
Balance
|
|
Weighted Average
Balance
|
|
Weighted
Average Rate
|
|
Balance
|
|
Weighted Average
Balance
|
|
Weighted
Average Rate
|
||||||||||
|
|
(Dollars in Thousands)
|
||||||||||||||||||||
Federal funds purchased
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
$
|
119
|
|
|
2.43
|
%
|
FHLB advances
|
|
273,500
|
|
|
267,058
|
|
|
2.21
|
|
|
274,500
|
|
|
274,382
|
|
|
2.06
|
|
||||
Line of credit
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
4.47
|
|
||||
Other borrowings
|
|
675
|
|
|
675
|
|
|
8.04
|
|
|
675
|
|
|
675
|
|
|
7.94
|
|
||||
Subordinated notes payable
|
|
23,797
|
|
|
23,781
|
|
|
6.63
|
|
|
23,769
|
|
|
23,739
|
|
|
6.64
|
|
||||
Junior subordinated notes
|
|
10,040
|
|
|
10,036
|
|
|
10.99
|
|
|
10,033
|
|
|
10,025
|
|
|
11.10
|
|
||||
|
|
$
|
308,012
|
|
|
$
|
301,550
|
|
|
2.87
|
|
|
$
|
308,977
|
|
|
$
|
308,943
|
|
|
2.72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term borrowings
|
|
$
|
128,500
|
|
|
|
|
|
|
$
|
136,500
|
|
|
|
|
|
||||||
Long-term borrowings
|
|
179,512
|
|
|
|
|
|
|
172,477
|
|
|
|
|
|
||||||||
|
|
$
|
308,012
|
|
|
|
|
|
|
$
|
308,977
|
|
|
|
|
|
|
|
As of and for the Six Months Ended
|
||||||
|
|
June 30, 2019
|
|
June 30, 2018
|
||||
|
|
(In Thousands)
|
||||||
Balance at the beginning of the period
|
|
$
|
2,956
|
|
|
$
|
2,849
|
|
SBA recourse provision
|
|
594
|
|
|
(196
|
)
|
||
Charge-offs, net
|
|
(1,482
|
)
|
|
(238
|
)
|
||
Balance at the end of the period
|
|
$
|
2,068
|
|
|
$
|
2,415
|
|
|
|
June 30, 2019
|
||||||||||||||
|
|
Fair Value Measurements Using
|
|
|
||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Securities available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government agency securities - government-sponsored enterprises
|
|
$
|
—
|
|
|
$
|
1,001
|
|
|
$
|
—
|
|
|
$
|
1,001
|
|
Municipal securities
|
|
—
|
|
|
3,507
|
|
|
—
|
|
|
3,507
|
|
||||
Mortgage backed securities - government issued
|
|
—
|
|
|
46,354
|
|
|
—
|
|
|
46,354
|
|
||||
Mortgage backed securities - government-sponsored enterprises
|
|
—
|
|
|
105,867
|
|
|
—
|
|
|
105,867
|
|
||||
Other securities
|
|
—
|
|
|
2,204
|
|
|
—
|
|
|
2,204
|
|
||||
Interest rate swaps
|
|
—
|
|
|
16,409
|
|
|
—
|
|
|
16,409
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
|
—
|
|
|
19,015
|
|
|
—
|
|
|
19,015
|
|
|
|
December 31, 2018
|
||||||||||||||
|
|
Fair Value Measurements Using
|
|
|
||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Securities available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government agency securities - government-sponsored enterprises
|
|
$
|
—
|
|
|
$
|
990
|
|
|
$
|
—
|
|
|
$
|
990
|
|
Municipal securities
|
|
—
|
|
|
5,886
|
|
|
—
|
|
|
5,886
|
|
||||
Mortgage backed securities - government issued
|
|
—
|
|
|
19,628
|
|
|
—
|
|
|
19,628
|
|
||||
Mortgage backed securities - government-sponsored enterprises
|
|
—
|
|
|
109,478
|
|
|
—
|
|
|
109,478
|
|
||||
Other securities
|
|
—
|
|
|
2,376
|
|
|
—
|
|
|
2,376
|
|
||||
Interest rate swaps
|
|
—
|
|
|
4,637
|
|
|
—
|
|
|
4,637
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
|
—
|
|
|
4,779
|
|
|
—
|
|
|
4,779
|
|
|
|
June 30, 2019
|
||||||||||||||
|
|
Fair Value Measurements Using
|
|
|
||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Impaired loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
21,715
|
|
|
$
|
21,715
|
|
Foreclosed properties
|
|
—
|
|
|
—
|
|
|
2,660
|
|
|
2,660
|
|
||||
Loan servicing rights
|
|
—
|
|
|
—
|
|
|
1,253
|
|
|
1,253
|
|
|
|
December 31, 2018
|
||||||||||||||
|
|
Fair Value Measurements Using
|
|
|
||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Impaired loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
15,706
|
|
|
$
|
15,706
|
|
Foreclosed properties
|
|
—
|
|
|
—
|
|
|
2,547
|
|
|
2,547
|
|
||||
Loan servicing rights
|
|
—
|
|
|
—
|
|
|
1,278
|
|
|
1,278
|
|
|
|
June 30, 2019
|
||||||||||||||||||
|
|
Carrying
Amount
|
|
Fair Value
|
||||||||||||||||
|
|
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
|
|
(In Thousands)
|
||||||||||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
45,875
|
|
|
$
|
45,877
|
|
|
$
|
39,975
|
|
|
$
|
5,902
|
|
|
$
|
—
|
|
Securities available-for-sale
|
|
158,933
|
|
|
158,933
|
|
|
—
|
|
|
158,933
|
|
|
—
|
|
|||||
Securities held-to-maturity
|
|
34,519
|
|
|
34,981
|
|
|
—
|
|
|
34,981
|
|
|
—
|
|
|||||
Loans held for sale
|
|
4,786
|
|
|
5,265
|
|
|
—
|
|
|
5,265
|
|
|
—
|
|
|||||
Loans and lease receivables, net
|
|
1,700,157
|
|
|
1,698,157
|
|
|
—
|
|
|
—
|
|
|
1,698,157
|
|
|||||
Federal Home Loan Bank stock
|
|
6,720
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|||||
Accrued interest receivable
|
|
6,387
|
|
|
6,387
|
|
|
6,387
|
|
|
—
|
|
|
—
|
|
|||||
Interest rate swaps
|
|
16,409
|
|
|
16,409
|
|
|
—
|
|
|
16,409
|
|
|
—
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
|
1,529,645
|
|
|
1,530,042
|
|
|
1,143,042
|
|
|
387,000
|
|
|
—
|
|
|||||
Federal Home Loan Bank advances and other borrowings
|
|
297,972
|
|
|
297,873
|
|
|
—
|
|
|
297,873
|
|
|
—
|
|
|||||
Junior subordinated notes
|
|
10,040
|
|
|
9,962
|
|
|
—
|
|
|
—
|
|
|
9,962
|
|
|||||
Accrued interest payable
|
|
4,335
|
|
|
4,335
|
|
|
4,335
|
|
|
—
|
|
|
—
|
|
|||||
Interest rate swaps
|
|
19,015
|
|
|
19,015
|
|
|
—
|
|
|
19,015
|
|
|
—
|
|
|||||
Off-balance sheet items:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Standby letters of credit
|
|
56
|
|
|
56
|
|
|
—
|
|
|
—
|
|
|
56
|
|
|
|
December 31, 2018
|
||||||||||||||||||
|
|
Carrying
Amount
|
|
Fair Value
|
||||||||||||||||
|
|
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
|
|
(In Thousands)
|
||||||||||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
86,546
|
|
|
$
|
86,546
|
|
|
$
|
67,246
|
|
|
$
|
19,300
|
|
|
$
|
—
|
|
Securities available-for-sale
|
|
138,358
|
|
|
138,358
|
|
|
—
|
|
|
138,358
|
|
|
—
|
|
|||||
Securities held-to-maturity
|
|
37,731
|
|
|
37,409
|
|
|
—
|
|
|
37,409
|
|
|
—
|
|
|||||
Loans held for sale
|
|
5,287
|
|
|
5,816
|
|
|
—
|
|
|
5,816
|
|
|
—
|
|
|||||
Loans and lease receivables, net
|
|
1,597,230
|
|
|
1,589,323
|
|
|
—
|
|
|
—
|
|
|
1,589,323
|
|
|||||
Federal Home Loan Bank stock
|
|
7,240
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|||||
Accrued interest receivable
|
|
5,684
|
|
|
5,684
|
|
|
5,684
|
|
|
—
|
|
|
—
|
|
|||||
Interest rate swaps
|
|
4,637
|
|
|
4,637
|
|
|
—
|
|
|
4,637
|
|
|
—
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
|
1,455,299
|
|
|
1,453,482
|
|
|
1,026,648
|
|
|
426,834
|
|
|
—
|
|
|||||
Federal Home Loan Bank advances and other borrowings
|
|
298,944
|
|
|
294,127
|
|
|
—
|
|
|
294,127
|
|
|
—
|
|
|||||
Junior subordinated notes
|
|
10,033
|
|
|
9,955
|
|
|
—
|
|
|
—
|
|
|
9,955
|
|
|||||
Accrued interest payable
|
|
3,696
|
|
|
3,696
|
|
|
3,696
|
|
|
—
|
|
|
—
|
|
|||||
Interest rate swaps
|
|
4,779
|
|
|
4,779
|
|
|
—
|
|
|
4,779
|
|
|
—
|
|
|||||
Off-balance sheet items:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Standby letters of credit
|
|
59
|
|
|
59
|
|
|
—
|
|
|
—
|
|
|
59
|
|
|
|
Interest Rate Swap Contracts
|
||||||||||
|
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||||
|
|
Balance Sheet Location
|
|
Fair Value
|
|
Balance Sheet Location
|
|
Fair Value
|
||||
|
|
(In Thousands)
|
||||||||||
Derivatives not designated as hedging instruments
|
|
|
|
|
|
|
|
|
||||
June 30, 2019
|
|
Accrued interest receivable and other assets
|
|
$
|
16,409
|
|
|
Accrued interest payable and other liabilities
|
|
$
|
16,409
|
|
December 31, 2018
|
|
Accrued interest receivable and other assets
|
|
$
|
4,637
|
|
|
Accrued interest payable and other liabilities
|
|
$
|
4,637
|
|
Derivatives designated as hedging instruments
|
|
|
|
|
|
|
|
|
||||
June 30, 2019
|
|
Accumulated other comprehensive income
(1)
|
|
$
|
2,607
|
|
|
Accrued interest payable and other liabilities
|
|
$
|
2,607
|
|
December 31, 2018
|
|
Accumulated other comprehensive income
(1)
|
|
$
|
142
|
|
|
Accrued interest payable and other liabilities
|
|
$
|
142
|
|
(1)
|
The fair value of derivatives designated as hedging instruments included in accumulated other comprehensive income represent pre-tax amounts, which are reported net of tax on the unaudited Consolidated Balance Sheets.
|
|
|
As of June 30, 2019
|
||||||||||||||||||||||||||
|
|
Actual
|
|
Minimum Required for Capital Adequacy Purposes
|
|
For Capital Adequacy Purposes Plus Capital Conservation Buffer
|
|
Minimum Required to Be Well
Capitalized Under Prompt Corrective Action Requirements |
||||||||||||||||||||
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
||||||||||||
|
|
(Dollars in Thousands)
|
||||||||||||||||||||||||||
First Business Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total capital
(to risk-weighted assets)
|
|
$
|
227,333
|
|
|
11.63
|
%
|
|
$
|
156,436
|
|
|
8.00
|
%
|
|
$
|
205,322
|
|
|
10.50
|
%
|
|
$
|
195,545
|
|
|
10.00
|
%
|
Tier 1 capital
(to risk-weighted assets)
|
|
205,445
|
|
|
10.51
|
|
|
117,327
|
|
|
6.00
|
|
|
166,213
|
|
|
8.50
|
|
|
156,436
|
|
|
8.00
|
|
||||
Common equity tier 1 capital
(to risk-weighted assets)
|
|
205,445
|
|
|
10.51
|
|
|
87,995
|
|
|
4.50
|
|
|
136,882
|
|
|
7.00
|
|
|
127,104
|
|
|
6.50
|
|
||||
Tier 1 leverage capital
(to adjusted assets)
|
|
205,445
|
|
|
10.26
|
|
|
80,121
|
|
|
4.00
|
|
|
80,121
|
|
|
4.00
|
|
|
100,151
|
|
|
5.00
|
|
|
|
As of December 31, 2018
|
||||||||||||||||||||||||||
|
|
Actual
|
|
Minimum Required for Capital Adequacy Purposes
|
|
For Capital Adequacy Purposes Plus Capital Conservation Buffer
|
|
Minimum Required to Be Well
Capitalized Under Prompt Corrective Action Requirements |
||||||||||||||||||||
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
||||||||||||
|
|
(Dollars in Thousands)
|
||||||||||||||||||||||||||
First Business Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total capital
(to risk-weighted assets)
|
|
$
|
220,474
|
|
|
11.49
|
%
|
|
$
|
153,456
|
|
|
8.00
|
%
|
|
$
|
189,422
|
|
|
9.875
|
%
|
|
$
|
191,820
|
|
|
10.00
|
%
|
Tier 1 capital
(to risk-weighted assets)
|
|
197,093
|
|
|
10.27
|
|
|
115,092
|
|
|
6.00
|
|
|
151,058
|
|
|
7.875
|
|
|
153,456
|
|
|
8.00
|
|
||||
Common equity tier 1 capital
(to risk-weighted assets)
|
|
197,093
|
|
|
10.27
|
|
|
86,319
|
|
|
4.50
|
|
|
122,285
|
|
|
6.375
|
|
|
124,683
|
|
|
6.50
|
|
||||
Tier 1 leverage capital
(to adjusted assets)
|
|
197,093
|
|
|
10.20
|
|
|
77,301
|
|
|
4.00
|
|
|
77,301
|
|
|
4.00
|
|
|
96,626
|
|
|
5.00
|
|
•
|
Competitive pressures among depository and other financial institutions nationally and in our markets.
|
•
|
Adverse changes in the economy or business conditions, either nationally or in our markets.
|
•
|
Increases in defaults by borrowers and other delinquencies.
|
•
|
Our ability to manage growth effectively, including the successful expansion of our client service, administrative infrastructure, and internal management systems.
|
•
|
Fluctuations in interest rates and market prices.
|
•
|
Changes in legislative or regulatory requirements applicable to us and our subsidiary.
|
•
|
Changes in tax or accounting requirements.
|
•
|
Fraud, including client and system failure or breaches of our network security, including our internet banking activities.
|
•
|
Failure to comply with the applicable SBA regulations in order to maintain the eligibility of the guaranteed portion of SBA loans.
|
•
|
Total assets increased to
$2.070 billion
as of
June 30, 2019
compared to
$1.966 billion
as of
December 31, 2018
.
|
•
|
Net income for the three months ended
June 30, 2019
was
$6.6 million
compared to net income of
$3.3 million
for the three months ended
June 30, 2018
. Net income for the six months ended
June 30, 2019
was
$12.5 million
compared to net income of
$6.9 million
for the six months ended
June 30, 2018
.
|
•
|
Diluted earnings per common share for the three months ended
June 30, 2019
were
$0.75
compared to
$0.38
for the three months ended
June 30, 2018
. Diluted earnings per common share for the six months ended
June 30, 2019
were
$1.43
compared to
$0.79
for the three months ended
June 30, 2018
.
|
•
|
Annualized return on average assets (“ROAA”) and annualized return on average equity (“ROAE”) were
1.30%
and
14.09%
, respectively, for the three month period ended
June 30, 2019
, compared to
0.70%
and
7.59%
, respectively, for the same time period in
2018
. ROAA and ROAE were
1.25%
and
13.89%
, respectively, for the six month period ended
June 30, 2019
compared to
0.74%
and
8.22%
, respectively, for the same period in
2018
.
|
•
|
Net interest income was
$16.9 million
for the three months ended
June 30, 2019
and
2018
. Net interest income was
$34.6 million
for the six months ended
June 30, 2019
compared to
$33.1 million
for the six months ended
June 30, 2018
.
|
•
|
Top line revenue, the sum of net interest income and non-interest income, increased
8.3%
to
$22.7 million
for the three months ended
June 30, 2019
compared to
$20.9 million
for the three months ended
June 30, 2018
. For the six months ended
June 30, 2019
, top line revenue increased
7.8%
to
$45.0 million
compared to
$41.8 million
for the six months ended
June 30, 2018
.
|
•
|
Net interest margin
decreased
25
basis points to
3.52%
for the three months ended
June 30, 2019
compared to
3.77%
for the three months ended
June 30, 2018
. Net interest margin decreased
five
basis points to
3.66%
for the six months ended
June 30, 2019
compared to
3.71%
for the six months ended
June 30, 2018
.
|
•
|
Efficiency ratio was
67.41%
for the three months ended
June 30, 2019
, compared to
67.07%
for the three months ended
June 30, 2018
. Efficiency ratio was
67.73%
for the six months ended
June 30, 2019
compared to
67.27%
for the same time period in
2018
.
|
•
|
Provision for loan and lease losses was a benefit of
$784,000
for the three months ended
June 30, 2019
compared to a provision expense of
$2.6 million
for the three months ended
June 30, 2018
. Provision for loan and lease losses was a benefit of
$736,000
for the six months ended
June 30, 2019
compared to a provision expense of
$5.1 million
for the same time period in
2018
.
|
•
|
SBA recourse provision was
$113,000
for the three months ended
June 30, 2019
compared to
$99,000
for the three months ended
June 30, 2018
. For the six months ended
June 30, 2019
, SBA recourse provision was
$594,000
compared to a net benefit of
$196,000
for the six months ended
June 30, 2018
.
|
•
|
Relationship-based historic tax credit programs contributed $446,000, or $0.05 per share, for the three months ended
June 30, 2019
compared to no contribution for the three months ended
June 30, 2018
. Relationship-based historic tax credit programs contributed $1.3 million, or $0.15 per share, for the six months ended
June 30, 2019
compared to no contribution for the six months ended
June 30, 2018
.
|
•
|
Net recoveries for the three months ended
June 30, 2019
were
$154,000
compared to net charge-offs of
$285,000
, or
0.07%
of average loans and leases annualized, for the three months ended
June 30, 2018
. Net recoveries for the six months ended
June 30, 2019
were
$130,000
compared to net charge-offs of
$2.9 million
, or
0.37%
of average loans and leases annualized, for the six months ended
June 30, 2018
.
|
•
|
Period-end gross loans and leases receivable
increased
$102.3 million
, or
12.7%
annualized, to
$1.720 billion
at
June 30, 2019
from
$1.618 billion
at
December 31, 2018
.
|
•
|
Allowance for loan and lease losses as a percentage of gross loans and leases was
1.15%
at
June 30, 2019
compared to
1.26%
at
December 31, 2018
.
|
•
|
Non-performing assets were
$28.5 million
and
1.38%
of total assets at
June 30, 2019
, compared to
$27.8 million
and
1.42%
at
December 31, 2018
and
$32.6 million
and
1.71%
at
June 30, 2018
.
|
•
|
Non-accrual loans and leases
increased
by
$563,000
, or
2.2%
, to
$25.9 million
at
June 30, 2019
from
$25.3 million
at
December 31, 2018
.
|
•
|
Period-end in-market deposits increased
$110.8 million
, or
18.8%
annualized, to
$1.290 billion
at
June 30, 2019
from
$1.179 billion
at
December 31, 2018
.
|
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||||||||
|
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
||||||||||
|
|
(Dollars in Thousands)
|
||||||||||||||||||||
Net interest income
|
|
$
|
16,852
|
|
|
$
|
16,931
|
|
|
(0.5
|
)%
|
|
$
|
34,606
|
|
|
$
|
33,132
|
|
|
4.4
|
%
|
Non-interest income
|
|
5,805
|
|
|
3,982
|
|
|
45.8
|
|
|
10,443
|
|
|
8,648
|
|
|
20.8
|
|
||||
Total top line revenue
|
|
$
|
22,657
|
|
|
$
|
20,913
|
|
|
8.3
|
|
|
$
|
45,049
|
|
|
$
|
41,780
|
|
|
7.8
|
|
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||||||||||||||||
|
|
2019
|
|
2018
|
|
$ Change
|
|
% Change
|
|
2019
|
|
2018
|
|
$ Change
|
|
% Change
|
||||||||||||||
|
|
(Dollars in Thousands)
|
||||||||||||||||||||||||||||
Total non-interest expense
|
|
$
|
17,464
|
|
|
$
|
14,467
|
|
|
$
|
2,997
|
|
|
20.7
|
%
|
|
$
|
35,206
|
|
|
$
|
28,374
|
|
|
$
|
6,832
|
|
|
24.1
|
%
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net gain on foreclosed properties
|
|
(21
|
)
|
|
—
|
|
|
(21
|
)
|
|
NM
|
|
|
(21
|
)
|
|
—
|
|
|
(21
|
)
|
|
NM
|
|
||||||
Amortization of other intangible assets
|
|
11
|
|
|
12
|
|
|
(1
|
)
|
|
(8.3
|
)
|
|
21
|
|
|
24
|
|
|
(3
|
)
|
|
(12.5
|
)
|
||||||
SBA recourse provision (benefit)
|
|
113
|
|
|
99
|
|
|
14
|
|
|
14.1
|
|
|
594
|
|
|
(196
|
)
|
|
790
|
|
|
(403.1
|
)
|
||||||
Impairment of tax credit investments
|
|
2,088
|
|
|
329
|
|
|
1,759
|
|
|
534.7
|
|
|
4,102
|
|
|
442
|
|
|
3,660
|
|
|
828.1
|
|
||||||
Total operating expense
|
|
$
|
15,273
|
|
|
$
|
14,027
|
|
|
$
|
1,246
|
|
|
8.9
|
|
|
$
|
30,510
|
|
|
$
|
28,104
|
|
|
$
|
2,406
|
|
|
8.6
|
|
Net interest income
|
|
$
|
16,852
|
|
|
$
|
16,931
|
|
|
$
|
(79
|
)
|
|
(0.5
|
)
|
|
$
|
34,606
|
|
|
$
|
33,132
|
|
|
$
|
1,474
|
|
|
4.4
|
|
Total non-interest income
|
|
5,805
|
|
|
3,982
|
|
|
1,823
|
|
|
45.8
|
|
|
10,443
|
|
|
8,648
|
|
|
1,795
|
|
|
20.8
|
|
||||||
Total operating revenue
|
|
$
|
22,657
|
|
|
$
|
20,913
|
|
|
$
|
1,744
|
|
|
8.3
|
|
|
$
|
45,049
|
|
|
$
|
41,780
|
|
|
$
|
3,269
|
|
|
7.8
|
|
Efficiency ratio
|
|
67.41
|
%
|
|
67.07
|
%
|
|
|
|
|
|
|
|
67.73
|
%
|
|
67.27
|
%
|
|
|
|
|
|
|
|
Increase (Decrease) for the Three Months Ended June 30,
|
|
Increase (Decrease) for the Six Months Ended June 30,
|
||||||||||||||||||||||
|
|
2019 Compared to 2018
|
|
2019 Compared to 2018
|
||||||||||||||||||||||
|
|
Rate
|
|
Volume
|
|
|
Net
|
|
Rate
|
|
Volume
|
|
|
Net
|
||||||||||||
|
|
(In Thousands)
|
||||||||||||||||||||||||
Interest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial real estate and other mortgage loans
(1)
|
|
$
|
657
|
|
|
$
|
834
|
|
|
|
$
|
1,491
|
|
|
$
|
2,180
|
|
|
$
|
1,659
|
|
|
|
$
|
3,839
|
|
Commercial and industrial loans
(1)
|
|
127
|
|
|
1,003
|
|
|
|
1,130
|
|
|
1,823
|
|
|
1,443
|
|
|
|
3,266
|
|
||||||
Direct financing leases
(1)
|
|
8
|
|
|
3
|
|
|
|
11
|
|
|
7
|
|
|
27
|
|
|
|
34
|
|
||||||
Consumer and other loans
(1)
|
|
22
|
|
|
7
|
|
|
|
29
|
|
|
27
|
|
|
41
|
|
|
|
68
|
|
||||||
Total loans and leases receivable
|
|
814
|
|
|
1,847
|
|
|
|
2,661
|
|
|
4,037
|
|
|
3,170
|
|
|
|
7,207
|
|
||||||
Mortgage-related securities
|
|
98
|
|
|
151
|
|
|
|
249
|
|
|
246
|
|
|
255
|
|
|
|
501
|
|
||||||
Other investment securities
|
|
17
|
|
|
(29
|
)
|
|
|
(12
|
)
|
|
35
|
|
|
(60
|
)
|
|
|
(25
|
)
|
||||||
FHLB and FRB Stock
|
|
89
|
|
|
(69
|
)
|
|
|
20
|
|
|
71
|
|
|
(10
|
)
|
|
|
61
|
|
||||||
Short-term investments
|
|
56
|
|
|
(133
|
)
|
|
|
(77
|
)
|
|
215
|
|
|
(159
|
)
|
|
|
56
|
|
||||||
Total net change in income on interest-earning assets
|
|
1,074
|
|
|
1,767
|
|
|
|
2,841
|
|
|
4,604
|
|
|
3,196
|
|
|
|
7,800
|
|
||||||
Interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Transaction accounts
|
|
461
|
|
|
(100
|
)
|
|
|
361
|
|
|
1,083
|
|
|
(259
|
)
|
|
|
824
|
|
||||||
Money market accounts
|
|
1,463
|
|
|
320
|
|
|
|
1,783
|
|
|
3,100
|
|
|
355
|
|
|
|
3,455
|
|
||||||
Certificates of deposit
|
|
318
|
|
|
468
|
|
|
|
786
|
|
|
693
|
|
|
812
|
|
|
|
1,505
|
|
||||||
Wholesale deposits
|
|
253
|
|
|
(134
|
)
|
|
|
119
|
|
|
523
|
|
|
(291
|
)
|
|
|
232
|
|
||||||
Total deposits
|
|
2,495
|
|
|
554
|
|
|
|
3,049
|
|
|
5,399
|
|
|
617
|
|
|
|
6,016
|
|
||||||
FHLB advances
|
|
874
|
|
|
(1,001
|
)
|
|
|
(127
|
)
|
|
347
|
|
|
(33
|
)
|
|
|
314
|
|
||||||
Other borrowings
|
|
5
|
|
|
(7
|
)
|
|
|
(2
|
)
|
|
2
|
|
|
(6
|
)
|
|
|
(4
|
)
|
||||||
Junior subordinated notes
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
(1
|
)
|
|
1
|
|
|
|
—
|
|
||||||
Total net change in expense on interest-bearing liabilities
|
|
3,374
|
|
|
(454
|
)
|
|
|
2,920
|
|
|
5,747
|
|
|
579
|
|
|
|
6,326
|
|
||||||
Net change in net interest income
|
|
$
|
(2,300
|
)
|
|
$
|
2,221
|
|
|
|
$
|
(79
|
)
|
|
$
|
(1,143
|
)
|
|
$
|
2,617
|
|
|
|
$
|
1,474
|
|
(1)
|
Includes non-accrual loans and leases and loans held for sale.
|
|
|
For the Three Months Ended June 30,
|
||||||||||||||||||||
|
|
2019
|
|
2018
|
||||||||||||||||||
|
|
Average
Balance |
|
Interest
|
|
Average
Yield/Rate (4) |
|
Average
Balance |
|
Interest
|
|
Average
Yield/Rate (4) |
||||||||||
|
|
(Dollars in Thousands)
|
||||||||||||||||||||
Interest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate and other mortgage loans
(1)
|
|
$
|
1,139,036
|
|
|
$
|
14,755
|
|
|
5.18
|
%
|
|
$
|
1,073,326
|
|
|
$
|
13,264
|
|
|
4.94
|
%
|
Commercial and industrial loans
(1)
|
|
493,093
|
|
|
8,477
|
|
|
6.88
|
|
|
434,657
|
|
|
7,347
|
|
|
6.76
|
|
||||
Direct financing leases
(1)
|
|
31,610
|
|
|
324
|
|
|
4.10
|
|
|
31,284
|
|
|
313
|
|
|
4.00
|
|
||||
Consumer and other loans
(1)
|
|
30,555
|
|
|
348
|
|
|
4.56
|
|
|
29,914
|
|
|
319
|
|
|
4.27
|
|
||||
Total loans and leases receivable
(1)
|
|
1,694,294
|
|
|
23,904
|
|
|
5.64
|
|
|
1,569,181
|
|
|
21,243
|
|
|
5.42
|
|
||||
Mortgage-related securities
(2)
|
|
161,827
|
|
|
1,024
|
|
|
2.53
|
|
|
136,982
|
|
|
775
|
|
|
2.26
|
|
||||
Other investment securities
(3)
|
|
28,723
|
|
|
151
|
|
|
2.10
|
|
|
34,391
|
|
|
163
|
|
|
1.90
|
|
||||
FHLB and FRB stock
|
|
6,875
|
|
|
86
|
|
|
5.00
|
|
|
8,392
|
|
|
66
|
|
|
3.15
|
|
||||
Short-term investments
|
|
22,570
|
|
|
144
|
|
|
2.55
|
|
|
45,473
|
|
|
221
|
|
|
1.94
|
|
||||
Total interest-earning assets
|
|
1,914,289
|
|
|
25,309
|
|
|
5.29
|
|
|
1,794,419
|
|
|
22,468
|
|
|
5.01
|
|
||||
Non-interest-earning assets
|
|
110,516
|
|
|
|
|
|
|
94,923
|
|
|
|
|
|
||||||||
Total assets
|
|
$
|
2,024,805
|
|
|
|
|
|
|
$
|
1,889,342
|
|
|
|
|
|
||||||
Interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Transaction accounts
|
|
$
|
234,241
|
|
|
989
|
|
|
1.69
|
|
|
$
|
272,840
|
|
|
628
|
|
|
0.92
|
|
||
Money market accounts
|
|
593,431
|
|
|
2,850
|
|
|
1.92
|
|
|
474,943
|
|
|
1,067
|
|
|
0.90
|
|
||||
Certificates of deposit
|
|
164,537
|
|
|
1,025
|
|
|
2.49
|
|
|
71,994
|
|
|
239
|
|
|
1.33
|
|
||||
Wholesale deposits
|
|
251,060
|
|
|
1,394
|
|
|
2.22
|
|
|
278,496
|
|
|
1,275
|
|
|
1.83
|
|
||||
Total interest-bearing deposits
|
|
1,243,269
|
|
|
6,258
|
|
|
2.01
|
|
|
1,098,273
|
|
|
3,209
|
|
|
1.17
|
|
||||
FHLB advances
|
|
266,137
|
|
|
1,511
|
|
|
2.27
|
|
|
322,791
|
|
|
1,637
|
|
|
2.03
|
|
||||
Other borrowings
|
|
24,463
|
|
|
411
|
|
|
6.72
|
|
|
24,889
|
|
|
414
|
|
|
6.65
|
|
||||
Junior subordinated notes
|
|
10,038
|
|
|
277
|
|
|
11.04
|
|
|
10,023
|
|
|
277
|
|
|
11.05
|
|
||||
Total interest-bearing liabilities
|
|
1,543,907
|
|
|
8,457
|
|
|
2.19
|
|
|
1,455,976
|
|
|
5,537
|
|
|
1.52
|
|
||||
Non-interest-bearing demand deposit accounts
|
|
254,177
|
|
|
|
|
|
|
240,352
|
|
|
|
|
|
||||||||
Other non-interest-bearing liabilities
|
|
40,110
|
|
|
|
|
|
|
19,752
|
|
|
|
|
|
||||||||
Total liabilities
|
|
1,838,194
|
|
|
|
|
|
|
1,716,080
|
|
|
|
|
|
||||||||
Stockholders’ equity
|
|
186,611
|
|
|
|
|
|
|
173,262
|
|
|
|
|
|
||||||||
Total liabilities and stockholders’ equity
|
|
$
|
2,024,805
|
|
|
|
|
|
|
$
|
1,889,342
|
|
|
|
|
|
||||||
Net interest income
|
|
|
|
$
|
16,852
|
|
|
|
|
|
|
$
|
16,931
|
|
|
|
||||||
Interest rate spread
|
|
|
|
|
|
3.10
|
%
|
|
|
|
|
|
3.49
|
%
|
||||||||
Net interest-earning assets
|
|
$
|
370,382
|
|
|
|
|
|
|
$
|
338,443
|
|
|
|
|
|
||||||
Net interest margin
|
|
|
|
|
|
3.52
|
%
|
|
|
|
|
|
3.77
|
%
|
||||||||
Average interest-earning assets to average interest-bearing liabilities
|
|
123.99
|
%
|
|
|
|
|
|
123.25
|
%
|
|
|
|
|
||||||||
Return on average assets
(4)
|
|
1.30
|
|
|
|
|
|
|
0.70
|
|
|
|
|
|
||||||||
Return on average equity
(4)
|
|
14.09
|
|
|
|
|
|
|
7.59
|
|
|
|
|
|
||||||||
Average equity to average assets
|
|
9.22
|
|
|
|
|
|
|
9.17
|
|
|
|
|
|
||||||||
Non-interest expense to average assets
(4)
|
|
3.45
|
|
|
|
|
|
|
3.06
|
|
|
|
|
|
(1)
|
The average balances of loans and leases include non-accrual loans and leases and loans held for sale. Interest income related to non-accrual loans and leases is recognized when collected. Interest income includes net loan fees collected in lieu of interest.
|
(2)
|
Includes amortized cost basis of assets available-for-sale and held-to-maturity.
|
(3)
|
Yields on tax-exempt municipal securities are not presented on a tax-equivalent basis in this table.
|
(4)
|
Represents annualized yields/rates.
|
|
|
For the Six Months Ended June 30,
|
||||||||||||||||||||
|
|
2019
|
|
2018
|
||||||||||||||||||
|
|
Average
Balance
|
|
Interest
|
|
Average
Yield/Rate
(4)
|
|
Average
Balance
|
|
Interest
|
|
Average
Yield/Rate
(4)
|
||||||||||
|
|
(Dollars in Thousands)
|
||||||||||||||||||||
Interest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate and other mortgage loans
(1)
|
|
$
|
1,126,449
|
|
|
$
|
29,444
|
|
|
5.23
|
%
|
|
$
|
1,060,112
|
|
|
$
|
25,605
|
|
|
4.83
|
%
|
Commercial and industrial loans
(1)
|
|
479,644
|
|
|
17,315
|
|
|
7.22
|
|
|
437,061
|
|
|
14,049
|
|
|
6.43
|
|
||||
Direct financing leases
(1)
|
|
31,927
|
|
|
651
|
|
|
4.08
|
|
|
30,582
|
|
|
617
|
|
|
4.04
|
|
||||
Consumer and other loans
(1)
|
|
31,491
|
|
|
701
|
|
|
4.45
|
|
|
29,639
|
|
|
633
|
|
|
4.27
|
|
||||
Total loans and leases receivable
(1)
|
|
1,669,511
|
|
|
48,111
|
|
|
5.76
|
|
|
1,557,394
|
|
|
40,904
|
|
|
5.25
|
|
||||
Mortgage-related securities
(2)
|
|
153,981
|
|
|
1,963
|
|
|
2.55
|
|
|
132,546
|
|
|
1,462
|
|
|
2.21
|
|
||||
Other investment securities
(3)
|
|
29,423
|
|
|
307
|
|
|
2.09
|
|
|
35,386
|
|
|
332
|
|
|
1.88
|
|
||||
FHLB and FRB stock
|
|
6,965
|
|
|
175
|
|
|
5.03
|
|
|
7,559
|
|
|
114
|
|
|
3.02
|
|
||||
Short-term investments
|
|
33,818
|
|
|
433
|
|
|
2.56
|
|
|
51,349
|
|
|
377
|
|
|
1.47
|
|
||||
Total interest-earning assets
|
|
1,893,698
|
|
|
50,989
|
|
|
5.39
|
|
|
1,784,234
|
|
|
43,189
|
|
|
4.84
|
|
||||
Non-interest-earning assets
|
|
103,196
|
|
|
|
|
|
|
91,853
|
|
|
|
|
|
||||||||
Total assets
|
|
$
|
1,996,894
|
|
|
|
|
|
|
$
|
1,876,087
|
|
|
|
|
|
||||||
Interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Transaction accounts
|
|
$
|
224,873
|
|
|
1,860
|
|
|
1.65
|
|
|
$
|
285,216
|
|
|
1,036
|
|
|
0.73
|
|
||
Money market accounts
|
|
574,666
|
|
|
5,373
|
|
|
1.87
|
|
|
494,779
|
|
|
1,918
|
|
|
0.78
|
|
||||
Certificates of deposit
|
|
162,082
|
|
|
1,983
|
|
|
2.45
|
|
|
76,424
|
|
|
478
|
|
|
1.25
|
|
||||
Wholesale deposits
|
|
259,379
|
|
|
2,838
|
|
|
2.19
|
|
|
289,614
|
|
|
2,606
|
|
|
1.80
|
|
||||
Total interest-bearing deposits
|
|
1,221,000
|
|
|
12,054
|
|
|
1.97
|
|
|
1,146,033
|
|
|
6,038
|
|
|
1.05
|
|
||||
FHLB advances
|
|
267,058
|
|
|
2,955
|
|
|
2.21
|
|
|
270,445
|
|
|
2,641
|
|
|
1.95
|
|
||||
Other borrowings
|
|
24,456
|
|
|
822
|
|
|
6.72
|
|
|
24,647
|
|
|
826
|
|
|
6.70
|
|
||||
Junior subordinated notes
|
|
10,036
|
|
|
552
|
|
|
11.00
|
|
|
10,022
|
|
|
552
|
|
|
11.02
|
|
||||
Total interest-bearing liabilities
|
|
1,522,550
|
|
|
16,383
|
|
|
2.15
|
|
|
1,451,147
|
|
|
10,057
|
|
|
1.39
|
|
||||
Non-interest-bearing demand deposit accounts
|
|
255,691
|
|
|
|
|
|
|
234,487
|
|
|
|
|
|
||||||||
Other non-interest-bearing liabilities
|
|
39,017
|
|
|
|
|
|
|
21,643
|
|
|
|
|
|
||||||||
Total liabilities
|
|
1,817,258
|
|
|
|
|
|
|
1,707,277
|
|
|
|
|
|
||||||||
Stockholders’ equity
|
|
179,636
|
|
|
|
|
|
|
168,810
|
|
|
|
|
|
||||||||
Total liabilities and stockholders’ equity
|
|
$
|
1,996,894
|
|
|
|
|
|
|
$
|
1,876,087
|
|
|
|
|
|
||||||
Net interest income
|
|
|
|
$
|
34,606
|
|
|
|
|
|
|
$
|
33,132
|
|
|
|
||||||
Interest rate spread
|
|
|
|
|
|
3.23
|
%
|
|
|
|
|
|
3.45
|
%
|
||||||||
Net interest-earning assets
|
|
$
|
371,148
|
|
|
|
|
|
|
$
|
333,087
|
|
|
|
|
|
||||||
Net interest margin
|
|
|
|
|
|
3.66
|
%
|
|
|
|
|
|
3.71
|
%
|
||||||||
Average interest-earning assets to average interest-bearing liabilities
|
|
124.38
|
%
|
|
|
|
|
|
122.95
|
%
|
|
|
|
|
||||||||
Return on average assets
(4)
|
|
1.25
|
|
|
|
|
|
|
0.74
|
|
|
|
|
|
||||||||
Return on average equity
(4)
|
|
13.89
|
|
|
|
|
|
|
8.22
|
|
|
|
|
|
||||||||
Average equity to average assets
|
|
9.00
|
|
|
|
|
|
|
9.00
|
|
|
|
|
|
||||||||
Non-interest expense to average assets
|
|
3.53
|
|
|
|
|
|
|
3.02
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The average balances of loans and leases include non-accrual loans and leases and loans held for sale. Interest income related to non-accrual loans and leases is recognized when collected. Interest income includes net loan fees collected in lieu of interest.
|
(2)
|
Includes amortized cost basis of assets available-for-sale and held-to-maturity.
|
(3)
|
Yields on tax-exempt municipal obligations are not presented on a tax-equivalent basis in this table.
|
(4)
|
Represents annualized yields/rates.
|
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||||||||||||||||
|
|
2019
|
|
2018
|
|
$ Change
|
|
% Change
|
|
2019
|
|
2018
|
|
$ Change
|
|
% Change
|
||||||||||||||
|
|
(Dollars in Thousands)
|
||||||||||||||||||||||||||||
Trust and investment services fee income
|
|
$
|
2,138
|
|
|
$
|
1,987
|
|
|
$
|
151
|
|
|
7.6
|
%
|
|
$
|
4,065
|
|
|
$
|
3,884
|
|
|
$
|
181
|
|
|
4.7
|
%
|
Gain on sale of SBA loans
|
|
297
|
|
|
274
|
|
|
23
|
|
|
8.4
|
|
|
539
|
|
|
543
|
|
|
(4
|
)
|
|
(0.7
|
)
|
||||||
Service charges on deposits
|
|
743
|
|
|
720
|
|
|
23
|
|
|
3.2
|
|
|
1,520
|
|
|
1,504
|
|
|
16
|
|
|
1.1
|
|
||||||
Loan fees
|
|
464
|
|
|
389
|
|
|
75
|
|
|
19.3
|
|
|
877
|
|
|
917
|
|
|
(40
|
)
|
|
(4.4
|
)
|
||||||
Increase in cash surrender value of bank-owned life insurance
|
|
297
|
|
|
297
|
|
|
—
|
|
|
—
|
|
|
589
|
|
|
589
|
|
|
—
|
|
|
—
|
|
||||||
Commercial loan swap fees
|
|
1,051
|
|
|
70
|
|
|
981
|
|
|
1,401.4
|
|
|
1,523
|
|
|
703
|
|
|
820
|
|
|
116.6
|
|
||||||
Other non-interest income
|
|
815
|
|
|
245
|
|
|
570
|
|
|
232.7
|
|
|
1,330
|
|
|
508
|
|
|
822
|
|
|
161.8
|
|
||||||
Total non-interest income
|
|
$
|
5,805
|
|
|
$
|
3,982
|
|
|
$
|
1,823
|
|
|
45.8
|
|
|
$
|
10,443
|
|
|
$
|
8,648
|
|
|
$
|
1,795
|
|
|
20.8
|
|
Fee income ratio
(1)
|
|
25.6
|
%
|
|
19.0
|
%
|
|
|
|
|
|
23.2
|
%
|
|
20.7
|
%
|
|
|
|
|
(1)
|
Fee income ratio is non-interest income divided by top line revenue (defined as net interest income plus non-interest income).
|
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||||||||||||||||
|
|
2019
|
|
2018
|
|
$ Change
|
|
% Change
|
|
2019
|
|
2018
|
|
$ Change
|
|
% Change
|
||||||||||||||
|
|
(Dollars in Thousands)
|
||||||||||||||||||||||||||||
Compensation
|
|
$
|
10,503
|
|
|
$
|
9,116
|
|
|
$
|
1,387
|
|
|
15.2
|
%
|
|
$
|
20,667
|
|
|
$
|
18,187
|
|
|
$
|
2,480
|
|
|
13.6
|
%
|
Occupancy
|
|
559
|
|
|
544
|
|
|
15
|
|
|
2.8
|
|
|
1,149
|
|
|
1,073
|
|
|
76
|
|
|
7.1
|
|
||||||
Professional fees
|
|
784
|
|
|
928
|
|
|
(144
|
)
|
|
(15.5
|
)
|
|
1,994
|
|
|
1,963
|
|
|
31
|
|
|
1.6
|
|
||||||
Data processing
|
|
689
|
|
|
626
|
|
|
63
|
|
|
10.1
|
|
|
1,269
|
|
|
1,236
|
|
|
33
|
|
|
2.7
|
|
||||||
Marketing
|
|
581
|
|
|
591
|
|
|
(10
|
)
|
|
(1.7
|
)
|
|
1,063
|
|
|
925
|
|
|
138
|
|
|
14.9
|
|
||||||
Equipment
|
|
272
|
|
|
343
|
|
|
(71
|
)
|
|
(20.7
|
)
|
|
661
|
|
|
686
|
|
|
(25
|
)
|
|
(3.6
|
)
|
||||||
Computer software
|
|
827
|
|
|
679
|
|
|
148
|
|
|
21.8
|
|
|
1,626
|
|
|
1,420
|
|
|
206
|
|
|
14.5
|
|
||||||
FDIC insurance
|
|
302
|
|
|
369
|
|
|
(67
|
)
|
|
(18.2
|
)
|
|
595
|
|
|
668
|
|
|
(73
|
)
|
|
(10.9
|
)
|
||||||
Collateral liquidation costs
|
|
89
|
|
|
222
|
|
|
(133
|
)
|
|
(59.9
|
)
|
|
(1
|
)
|
|
223
|
|
|
(224
|
)
|
|
(100.4
|
)
|
||||||
Net gain on foreclosed properties
|
|
(21
|
)
|
|
—
|
|
|
(21
|
)
|
|
NM
|
|
|
(21
|
)
|
|
—
|
|
|
(21
|
)
|
|
NM
|
|
||||||
Impairment on tax credit investments
|
|
2,088
|
|
|
329
|
|
|
1,759
|
|
|
534.7
|
|
|
4,102
|
|
|
442
|
|
|
3,660
|
|
|
828.1
|
|
||||||
SBA recourse provision
|
|
113
|
|
|
99
|
|
|
14
|
|
|
14.1
|
|
|
594
|
|
|
(196
|
)
|
|
790
|
|
|
(403.1
|
)
|
||||||
Other non-interest expense
|
|
678
|
|
|
621
|
|
|
57
|
|
|
9.2
|
|
|
1,508
|
|
|
1,747
|
|
|
(239
|
)
|
|
(13.7
|
)
|
||||||
Total non-interest expense
|
|
$
|
17,464
|
|
|
$
|
14,467
|
|
|
$
|
2,997
|
|
|
20.7
|
|
|
$
|
35,206
|
|
|
$
|
28,374
|
|
|
$
|
6,832
|
|
|
24.1
|
|
Total operating expense
(1)
|
|
$
|
15,273
|
|
|
$
|
14,027
|
|
|
|
|
|
|
$
|
30,510
|
|
|
$
|
28,104
|
|
|
|
|
|
||||||
Compensation expense to total operating expense
|
|
68.77
|
%
|
|
64.99
|
%
|
|
|
|
|
|
67.74
|
%
|
|
64.71
|
%
|
|
|
|
|
||||||||||
Full-time equivalent employees
|
|
275
|
|
|
265
|
|
|
|
|
|
|
275
|
|
|
265
|
|
|
|
|
|
(1)
|
Total operating expense represents total non-interest expense, adjusted to exclude the impact of discrete items as previously defined in the non-GAAP efficiency ratio calculation, above.
|
|
|
June 30,
2019 |
|
December 31,
2018 |
||||
|
|
(Dollars in Thousands)
|
||||||
Non-accrual loans and leases
|
|
|
|
|
||||
Commercial real estate:
|
|
|
|
|
||||
Commercial real estate - owner occupied
|
|
$
|
5,164
|
|
|
$
|
5,663
|
|
Commercial real estate - non-owner occupied
|
|
—
|
|
|
31
|
|
||
Land development
|
|
1,757
|
|
|
2,213
|
|
||
Construction
|
|
—
|
|
|
—
|
|
||
Multi-family
|
|
—
|
|
|
—
|
|
||
1-4 family
|
|
349
|
|
|
—
|
|
||
Total non-accrual commercial real estate
|
|
7,270
|
|
|
7,907
|
|
||
Commercial and industrial
|
|
18,410
|
|
|
17,104
|
|
||
Direct financing leases, net
|
|
—
|
|
|
—
|
|
||
Consumer and other:
|
|
|
|
|
||||
Home equity and second mortgages
|
|
2
|
|
|
—
|
|
||
Other
|
|
182
|
|
|
290
|
|
||
Total non-accrual consumer and other loans
|
|
184
|
|
|
290
|
|
||
Total non-accrual loans and leases
|
|
25,864
|
|
|
25,301
|
|
||
Foreclosed properties, net
|
|
2,660
|
|
|
2,547
|
|
||
Total non-performing assets
|
|
28,524
|
|
|
27,848
|
|
||
Performing troubled debt restructurings
|
|
151
|
|
|
180
|
|
||
Total impaired assets
|
|
$
|
28,675
|
|
|
$
|
28,028
|
|
|
|
|
|
|
||||
Total non-accrual loans and leases to gross loans and leases
|
|
1.50
|
%
|
|
1.56
|
%
|
||
Total non-performing assets to gross loans and leases plus foreclosed properties, net
|
|
1.66
|
|
|
1.72
|
|
||
Total non-performing assets to total assets
|
|
1.38
|
|
|
1.42
|
|
||
Allowance for loan and lease losses to gross loans and leases
|
|
1.15
|
|
|
1.26
|
|
||
Allowance for loan and lease losses to non-accrual loans and leases
|
|
76.64
|
|
|
80.73
|
|
|
|
As of and for the Six Months Ended June 30,
|
|
As of and for the
Year Ended December 31,
|
||||||||
|
|
2019
|
|
2018
|
|
2018
|
||||||
|
|
(In Thousands)
|
||||||||||
Impaired loans and leases with no impairment reserves required
|
|
$
|
8,024
|
|
|
$
|
18,866
|
|
|
$
|
10,802
|
|
Impaired loans and leases with impairment reserves required
|
|
17,991
|
|
|
12,474
|
|
|
14,679
|
|
|||
Total impaired loans and leases
|
|
26,015
|
|
|
31,340
|
|
|
25,481
|
|
|||
Less: Impairment reserve (included in allowance for loan and lease losses)
|
|
4,005
|
|
|
4,707
|
|
|
4,396
|
|
|||
Net impaired loans and leases
|
|
$
|
22,010
|
|
|
$
|
26,633
|
|
|
$
|
21,085
|
|
Average impaired loans and leases
|
|
$
|
24,508
|
|
|
$
|
24,378
|
|
|
$
|
26,431
|
|
Foregone interest income attributable to impaired loans and leases
|
|
$
|
1,411
|
|
|
$
|
1,488
|
|
|
$
|
3,478
|
|
Less: Interest income recognized on impaired loans and leases
|
|
709
|
|
|
414
|
|
|
1,304
|
|
|||
Net foregone interest income on impaired loans and leases
|
|
$
|
702
|
|
|
$
|
1,074
|
|
|
$
|
2,174
|
|
|
|
As of and for the Three Months Ended June 30,
|
|
As of and for the Six Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(Dollars in Thousands)
|
||||||||||||||
Allowance at beginning of period
|
|
$
|
20,449
|
|
|
$
|
18,638
|
|
|
$
|
20,425
|
|
|
$
|
18,763
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
||||||||
Commercial real estate — owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,299
|
)
|
||||
Commercial real estate — non-owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Construction and land development
|
|
—
|
|
|
(121
|
)
|
|
—
|
|
|
(992
|
)
|
||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
1-4 family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
||||
Commercial and industrial
|
|
(13
|
)
|
|
(168
|
)
|
|
(61
|
)
|
|
(657
|
)
|
||||
Direct financing leases
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Consumer and other:
|
|
|
|
|
|
|
|
|
||||||||
Home equity and second mortgages
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Other
|
|
(2
|
)
|
|
(17
|
)
|
|
(2
|
)
|
|
(37
|
)
|
||||
Total charge-offs
|
|
(15
|
)
|
|
(306
|
)
|
|
(63
|
)
|
|
(2,990
|
)
|
||||
Recoveries:
|
|
|
|
|
|
|
|
|
||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
||||||||
Commercial real estate — owner occupied
|
|
—
|
|
|
1
|
|
|
1
|
|
|
2
|
|
||||
Commercial real estate — non-owner occupied
|
|
72
|
|
|
1
|
|
|
72
|
|
|
1
|
|
||||
Construction and land development
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
1-4 family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
||||
Commercial and industrial
|
|
72
|
|
|
17
|
|
|
92
|
|
|
18
|
|
||||
Direct financing leases
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Consumer and other:
|
|
|
|
|
|
|
|
|
||||||||
Home equity and second mortgages
|
|
25
|
|
|
2
|
|
|
26
|
|
|
71
|
|
||||
Other
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
||||
Total recoveries
|
|
169
|
|
|
21
|
|
|
193
|
|
|
105
|
|
||||
Net recoveries (charge-offs)
|
|
154
|
|
|
(285
|
)
|
|
130
|
|
|
(2,885
|
)
|
||||
Provision for loan and lease losses
|
|
(784
|
)
|
|
2,579
|
|
|
(736
|
)
|
|
5,054
|
|
||||
Allowance at end of period
|
|
$
|
19,819
|
|
|
$
|
20,932
|
|
|
$
|
19,819
|
|
|
$
|
20,932
|
|
Annualized net charge-offs as a % of average gross loans and leases
|
|
(0.04
|
)%
|
|
0.07
|
%
|
|
(0.02
|
)%
|
|
0.37
|
%
|
•
|
the behavior of interest rates and pricing spreads;
|
•
|
the changes in product balances; and
|
•
|
the behavior of loan and deposit clients in different rate environments.
|
(a)
|
None.
|
(b)
|
Not applicable.
|
(c)
|
None.
|
|
|
|
|
|
|
|
|
|
10.1
|
|
|
|
|
|
|
|
10.2
|
|
|
|
|
|
|
|
10.3
|
|
|
|
|
|
|
|
10.4
|
|
|
|
|
|
|
|
10.5
|
|
|
|
|
|
|
|
10.6
|
|
|
|
|
|
|
|
10.7
|
|
|
|
|
|
|
|
10.8
|
|
|
|
|
|
|
|
31.1
|
|
|
|
|
|
|
|
31.2
|
|
|
|
|
|
|
|
32
|
|
|
|
|
|
|
|
101
|
|
|
The following financial information from First Business Financial Services, Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2019, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018, (ii) Consolidated Statements of Income for the three and six months ended June 30, 2019 and 2018, (iii) Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2019 and 2018, (iv) Consolidated Statements of Changes in Stockholders’ Equity for the six months ended June 30, 2019 and 2018, (v) Consolidated Statements of Cash Flows for the six months ended June 30, 2019 and 2018, and (vi) the Notes to Unaudited Consolidated Financial Statements
|
|
|
|
|
FIRST BUSINESS FINANCIAL SERVICES, INC.
|
July 26, 2019
|
/s/ Corey A. Chambas
|
|
Corey A. Chambas
|
|
Chief Executive Officer
|
|
|
July 26, 2019
|
/s/ Edward G. Sloane, Jr.
|
|
Edward G. Sloane, Jr.
|
|
Chief Financial Officer
|
|
(principal financial officer)
|
(d)
|
The “
Performance Period
” begins on _________________ and concludes on ___________________.
|
Performance Goal
|
Weighting
|
Threshold
|
Target
|
Maximum
|
Actual Performance Result
|
Achievement Percentage*
|
[Relative Return on Average Equity]
|
[__]%
|
[__]%
|
[__]%
|
[__]%
|
[__]%
|
[__]%
|
[Relative Total Shareholder Return]
|
[__]%
|
[__]%
|
[__]%
|
[__]%
|
[__]%
|
[__]%
|
Total Performance-Based RSU Vesting as a percentage of the Target Award
|
[__]%
|
Attainment Level
|
[Relative Return on Average Equity]
|
[Relative Total Shareholder Return]
|
Threshold
|
[0]%
|
[0]%
|
Target
|
[100]%
|
[100]%
|
Maximum
|
[200]%
|
[200]%
|
(d)
|
The “
Performance Period
” begins on _________________ and concludes on ___________________.
|
Performance Goal
|
Weighting
|
Threshold
|
Target
|
Maximum
|
Actual Performance Result
|
Achievement Percentage*
|
[Relative Return on Average Equity]
|
[__]%
|
[__]%
|
[__]%
|
[__]%
|
[__]%
|
[__]%
|
[Relative Total Shareholder Return]
|
[__]%
|
[__]%
|
[__]%
|
[__]%
|
[__]%
|
[__]%
|
Total Performance-Based RSU Vesting as a percentage of the Target Award
|
[__]%
|
Attainment Level
|
[Relative Return on Average Equity]
|
[Relative Total Shareholder Return]
|
Threshold
|
[0]%
|
[0]%
|
Target
|
[100]%
|
[100]%
|
Maximum
|
[200]%
|
[200]%
|
(d)
|
The “
Performance Period
” begins on _________________ and concludes on ___________________.
|
Performance Goal
|
Weighting
|
Threshold
|
Target
|
Maximum
|
Actual Performance Result
|
Achievement Percentage*
|
[Relative Return on Average Equity]
|
[__]%
|
[__]%
|
[__]%
|
[__]%
|
[__]%
|
[__]%
|
[Relative Total Shareholder Return]
|
[__]%
|
[__]%
|
[__]%
|
[__]%
|
[__]%
|
[__]%
|
Total Performance-Based RSU Vesting as a percentage of the Target Award
|
[__]%
|
Attainment Level
|
[Relative Return on Average Equity]
|
[Relative Total Shareholder Return]
|
Threshold
|
[0]%
|
[0]%
|
Target
|
[100]%
|
[100]%
|
Maximum
|
[200]%
|
[200]%
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of First Business Financial Services, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer 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.
|
Any significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Corey A. Chambas
|
|
Corey A. Chambas
|
|
Chief Executive Officer
|
|
July 26, 2019
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of First Business Financial Services, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer 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.
|
Any significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Edward G. Sloane, Jr.
|
|
Edward G. Sloane, Jr.
|
|
Chief Financial Officer
|
|
July 26, 2019
|
|
/s/ Corey A. Chambas
|
|
Corey A. Chambas
|
|
Chief Executive Officer
|
|
July 26, 2019
|
|
|
|
/s/ Edward G. Sloane, Jr.
|
|
Edward G. Sloane, Jr.
|
|
Chief Financial Officer
|
|
July 26, 2019
|