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
|
First Internet Bancorp
|
(Exact Name of Registrant as Specified in Its Charter)
|
Indiana
|
|
20-3489991
|
(State or Other Jurisdiction of
Incorporation or Organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
|
11201 USA Parkway
Fishers, IN
|
|
46037
|
(Address of Principal Executive Offices)
|
|
(Zip Code)
|
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(317) 532-7900
|
|
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(Registrant’s Telephone Number, Including Area Code)
|
|
|
|
|
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(Former Name, Former Address and Former Fiscal Year,
if Changed Since Last Report)
|
|
Large Accelerated Filer
¨
|
Accelerated Filer
þ
|
Non-accelerated Filer
¨
(Do not check if a smaller reporting company)
|
Smaller Reporting Company
¨
|
Emerging growth company
¨
|
|
ITEM 1.
|
FINANCIAL STATEMENTS
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
|
|
(Unaudited)
|
|
|
||||
Assets
|
|
|
|
|
|
|
||
Cash and due from banks
|
|
$
|
5,425
|
|
|
$
|
2,282
|
|
Interest-bearing deposits
|
|
60,818
|
|
|
37,170
|
|
||
Total cash and cash equivalents
|
|
66,243
|
|
|
39,452
|
|
||
Interest-bearing time deposits
|
|
—
|
|
|
250
|
|
||
Securities available-for-sale, at fair value (amortized cost of $499,089 and $471,070 in 2017 and 2016, respectively)
|
|
489,775
|
|
|
456,700
|
|
||
Securities held-to-maturity, at amortized cost (fair value of $19,004 and $16,197 in 2017 and 2016, respectively)
|
|
19,215
|
|
|
16,671
|
|
||
Loans held-for-sale (includes $16,996 and $27,101 at fair value in 2017 and 2016, respectively)
|
|
27,335
|
|
|
27,101
|
|
||
Loans
|
|
1,698,421
|
|
|
1,250,789
|
|
||
Allowance for loan losses
|
|
(13,194
|
)
|
|
(10,981
|
)
|
||
Net loans
|
|
1,685,227
|
|
|
1,239,808
|
|
||
Accrued interest receivable
|
|
8,479
|
|
|
6,708
|
|
||
Federal Home Loan Bank of Indianapolis stock
|
|
19,575
|
|
|
8,910
|
|
||
Cash surrender value of bank-owned life insurance
|
|
34,602
|
|
|
24,195
|
|
||
Premises and equipment, net
|
|
9,667
|
|
|
10,044
|
|
||
Goodwill
|
|
4,687
|
|
|
4,687
|
|
||
Other real estate owned
|
|
4,488
|
|
|
4,533
|
|
||
Accrued income and other assets
|
|
11,978
|
|
|
15,276
|
|
||
Total assets
|
|
$
|
2,381,271
|
|
|
$
|
1,854,335
|
|
Liabilities and Shareholders’ Equity
|
|
|
|
|
|
|
||
Liabilities
|
|
|
|
|
|
|
||
Noninterest-bearing deposits
|
|
$
|
36,636
|
|
|
$
|
31,166
|
|
Interest-bearing deposits
|
|
1,695,476
|
|
|
1,431,701
|
|
||
Total deposits
|
|
1,732,112
|
|
|
1,462,867
|
|
||
Advances from Federal Home Loan Bank
|
|
435,183
|
|
|
189,981
|
|
||
Subordinated debt, net of unamortized discounts and debt issuance costs of $1,348 and $1,422 in 2017 and 2016, respectively
|
|
36,652
|
|
|
36,578
|
|
||
Accrued interest payable
|
|
210
|
|
|
112
|
|
||
Accrued expenses and other liabilities
|
|
13,284
|
|
|
10,855
|
|
||
Total liabilities
|
|
2,217,441
|
|
|
1,700,393
|
|
||
Commitments and Contingencies
|
|
|
|
|
|
|
||
Shareholders’ Equity
|
|
|
|
|
|
|
||
Preferred stock, no par value; 4,913,779 shares authorized; issued and outstanding - none
|
|
—
|
|
|
—
|
|
||
Voting common stock, no par value; 45,000,000 shares authorized; 6,513,577 and 6,478,050 shares issued and outstanding in 2017 and 2016, respectively
|
|
119,883
|
|
|
119,506
|
|
||
Nonvoting common stock, no par value; 86,221 shares authorized; issued and outstanding - none
|
|
—
|
|
|
—
|
|
||
Retained earnings
|
|
49,738
|
|
|
43,704
|
|
||
Accumulated other comprehensive loss
|
|
(5,791
|
)
|
|
(9,268
|
)
|
||
Total shareholders’ equity
|
|
163,830
|
|
|
153,942
|
|
||
Total liabilities and shareholders’ equity
|
|
$
|
2,381,271
|
|
|
$
|
1,854,335
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Interest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Loans
|
|
$
|
16,416
|
|
|
$
|
11,661
|
|
|
$
|
30,572
|
|
|
$
|
22,850
|
|
Securities – taxable
|
|
2,566
|
|
|
1,747
|
|
|
4,933
|
|
|
2,916
|
|
||||
Securities – non-taxable
|
|
696
|
|
|
368
|
|
|
1,393
|
|
|
533
|
|
||||
Other earning assets
|
|
297
|
|
|
195
|
|
|
467
|
|
|
365
|
|
||||
Total interest income
|
|
19,975
|
|
|
13,971
|
|
|
37,365
|
|
|
26,664
|
|
||||
Interest Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deposits
|
|
5,324
|
|
|
3,930
|
|
|
10,023
|
|
|
6,818
|
|
||||
Other borrowed funds
|
|
1,677
|
|
|
735
|
|
|
2,911
|
|
|
1,399
|
|
||||
Total interest expense
|
|
7,001
|
|
|
4,665
|
|
|
12,934
|
|
|
8,217
|
|
||||
Net Interest Income
|
|
12,974
|
|
|
9,306
|
|
|
24,431
|
|
|
18,447
|
|
||||
Provision for Loan Losses
|
|
1,322
|
|
|
924
|
|
|
2,357
|
|
|
1,870
|
|
||||
Net Interest Income After Provision for Loan Losses
|
|
11,652
|
|
|
8,382
|
|
|
22,074
|
|
|
16,577
|
|
||||
Noninterest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Service charges and fees
|
|
220
|
|
|
215
|
|
|
431
|
|
|
415
|
|
||||
Mortgage banking activities
|
|
2,155
|
|
|
3,295
|
|
|
3,771
|
|
|
5,549
|
|
||||
Gain on sale of securities
|
|
—
|
|
|
177
|
|
|
—
|
|
|
177
|
|
||||
Other
|
|
361
|
|
|
61
|
|
|
665
|
|
|
147
|
|
||||
Total noninterest income
|
|
2,736
|
|
|
3,748
|
|
|
4,867
|
|
|
6,288
|
|
||||
Noninterest Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Salaries and employee benefits
|
|
5,193
|
|
|
4,329
|
|
|
10,266
|
|
|
8,227
|
|
||||
Marketing, advertising and promotion
|
|
544
|
|
|
434
|
|
|
1,062
|
|
|
898
|
|
||||
Consulting and professional services
|
|
764
|
|
|
895
|
|
|
1,577
|
|
|
1,533
|
|
||||
Data processing
|
|
245
|
|
|
275
|
|
|
482
|
|
|
549
|
|
||||
Loan expenses
|
|
248
|
|
|
200
|
|
|
462
|
|
|
384
|
|
||||
Premises and equipment
|
|
1,025
|
|
|
963
|
|
|
1,978
|
|
|
1,761
|
|
||||
Deposit insurance premium
|
|
300
|
|
|
215
|
|
|
615
|
|
|
395
|
|
||||
Other
|
|
604
|
|
|
564
|
|
|
1,179
|
|
|
1,133
|
|
||||
Total noninterest expense
|
|
8,923
|
|
|
7,875
|
|
|
17,621
|
|
|
14,880
|
|
||||
Income Before Income Taxes
|
|
5,465
|
|
|
4,255
|
|
|
9,320
|
|
|
7,985
|
|
||||
Income Tax Provision
|
|
1,464
|
|
|
1,421
|
|
|
2,487
|
|
|
2,719
|
|
||||
Net Income
|
|
$
|
4,001
|
|
|
$
|
2,834
|
|
|
$
|
6,833
|
|
|
$
|
5,266
|
|
Income Per Share of Common Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic
|
|
$
|
0.61
|
|
|
$
|
0.57
|
|
|
$
|
1.04
|
|
|
$
|
1.11
|
|
Diluted
|
|
$
|
0.61
|
|
|
$
|
0.57
|
|
|
$
|
1.04
|
|
|
$
|
1.10
|
|
Weighted-Average Number of Common Shares Outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic
|
|
6,583,515
|
|
|
4,972,759
|
|
|
6,565,760
|
|
|
4,757,243
|
|
||||
Diluted
|
|
6,597,991
|
|
|
4,992,025
|
|
|
6,599,681
|
|
|
4,782,700
|
|
||||
Dividends Declared Per Share
|
|
$
|
0.06
|
|
|
$
|
0.06
|
|
|
$
|
0.12
|
|
|
$
|
0.12
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net income
|
|
$
|
4,001
|
|
|
$
|
2,834
|
|
|
$
|
6,833
|
|
|
$
|
5,266
|
|
Other comprehensive income
|
|
|
|
|
|
|
|
|
||||||||
Net unrealized holding gains on securities available-for-sale recorded within other comprehensive income before income tax
|
|
3,991
|
|
|
3,917
|
|
|
5,056
|
|
|
5,791
|
|
||||
Reclassification adjustment for gains realized
|
|
—
|
|
|
(177
|
)
|
|
—
|
|
|
(177
|
)
|
||||
Other comprehensive income before income tax
|
|
3,991
|
|
|
3,740
|
|
|
5,056
|
|
|
5,614
|
|
||||
Income tax provision
|
|
1,507
|
|
|
1,331
|
|
|
1,579
|
|
|
1,998
|
|
||||
Other comprehensive income
|
|
2,484
|
|
|
2,409
|
|
|
3,477
|
|
|
3,616
|
|
||||
Comprehensive income
|
|
$
|
6,485
|
|
|
$
|
5,243
|
|
|
$
|
10,310
|
|
|
$
|
8,882
|
|
|
|
Voting and
Nonvoting
Common
Stock
|
|
Retained
Earnings |
|
Accumulated
Other
Comprehensive
Loss
|
|
Total
Shareholders’
Equity
|
||||||||
Balance, January 1, 2017
|
|
$
|
119,506
|
|
|
$
|
43,704
|
|
|
$
|
(9,268
|
)
|
|
$
|
153,942
|
|
Net income
|
|
—
|
|
|
6,833
|
|
|
—
|
|
|
6,833
|
|
||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
3,477
|
|
|
3,477
|
|
||||
Dividends declared ($0.12 per share)
|
|
—
|
|
|
(799
|
)
|
|
—
|
|
|
(799
|
)
|
||||
Recognition of the fair value of share-based compensation
|
|
532
|
|
|
—
|
|
|
—
|
|
|
532
|
|
||||
Deferred stock rights and restricted stock units issued in lieu of cash dividends payable on outstanding deferred stock rights and restricted stock units
|
|
18
|
|
|
—
|
|
|
—
|
|
|
18
|
|
||||
Common stock redeemed for the net settlement of share-based awards
|
|
(173
|
)
|
|
—
|
|
|
—
|
|
|
(173
|
)
|
||||
Balance, June 30, 2017
|
|
$
|
119,883
|
|
|
$
|
49,738
|
|
|
$
|
(5,791
|
)
|
|
$
|
163,830
|
|
|
|
Six Months Ended June 30,
|
||||||
|
|
2017
|
|
2016
|
||||
Operating Activities
|
|
|
|
|
|
|
||
Net income
|
|
$
|
6,833
|
|
|
$
|
5,266
|
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
|
|
|
|
|
|
||
Depreciation and amortization
|
|
2,468
|
|
|
1,468
|
|
||
Increase in cash surrender value of bank-owned life insurance
|
|
(407
|
)
|
|
(205
|
)
|
||
Provision for loan losses
|
|
2,357
|
|
|
1,870
|
|
||
Share-based compensation expense
|
|
532
|
|
|
358
|
|
||
Gain from sale of available-for-sale securities
|
|
—
|
|
|
(177
|
)
|
||
Loans originated for sale
|
|
(195,126
|
)
|
|
(259,095
|
)
|
||
Proceeds from sale of loans
|
|
198,840
|
|
|
256,592
|
|
||
Gain on loans sold
|
|
(3,423
|
)
|
|
(4,496
|
)
|
||
Increase in fair value of loans held-for-sale
|
|
(525
|
)
|
|
(986
|
)
|
||
Loss (gain) on derivatives
|
|
177
|
|
|
(67
|
)
|
||
Net change in accrued income and other assets
|
|
(214
|
)
|
|
(3,942
|
)
|
||
Net change in accrued expenses and other liabilities
|
|
887
|
|
|
1,485
|
|
||
Net cash provided by (used in) operating activities
|
|
12,399
|
|
|
(1,929
|
)
|
||
Investing Activities
|
|
|
|
|
||||
Net loan activity, excluding purchases
|
|
(425,497
|
)
|
|
(136,643
|
)
|
||
Proceeds from sale of other real estate owned
|
|
30
|
|
|
—
|
|
||
Net change in interest-bearing time deposits
|
|
250
|
|
|
750
|
|
||
Maturities and calls of securities available-for-sale
|
|
36,658
|
|
|
16,303
|
|
||
Proceeds from sale of securities available-for-sale
|
|
—
|
|
|
49,430
|
|
||
Purchase of securities available-for-sale
|
|
(64,677
|
)
|
|
(272,129
|
)
|
||
Purchase of securities held-to-maturity
|
|
(2,550
|
)
|
|
—
|
|
||
Purchase of Federal Home Loan Bank of Indianapolis stock
|
|
(10,665
|
)
|
|
—
|
|
||
Purchase of bank-owned life insurance
|
|
(10,000
|
)
|
|
—
|
|
||
Purchase of premises and equipment
|
|
(369
|
)
|
|
(1,653
|
)
|
||
Loans purchased
|
|
(22,279
|
)
|
|
(21,325
|
)
|
||
Net cash used in investing activities
|
|
(499,099
|
)
|
|
(365,267
|
)
|
||
Financing Activities
|
|
|
|
|
||||
Net increase in deposits
|
|
269,245
|
|
|
432,879
|
|
||
Cash dividends paid
|
|
(776
|
)
|
|
(538
|
)
|
||
Proceeds from advances from Federal Home Loan Bank
|
|
387,000
|
|
|
40,000
|
|
||
Repayment of advances from Federal Home Loan Bank
|
|
(141,805
|
)
|
|
(83,000
|
)
|
||
Net proceeds from common stock issuance
|
|
—
|
|
|
22,754
|
|
||
Other, net
|
|
(173
|
)
|
|
(43
|
)
|
||
Net cash provided by financing activities
|
|
513,491
|
|
|
412,052
|
|
||
Net Increase in Cash and Cash Equivalents
|
|
26,791
|
|
|
44,856
|
|
||
Cash and Cash Equivalents, Beginning of Period
|
|
39,452
|
|
|
25,152
|
|
||
Cash and Cash Equivalents, End of Period
|
|
$
|
66,243
|
|
|
$
|
70,008
|
|
Supplemental Disclosures
|
|
|
|
|
||||
Cash paid during the period for interest
|
|
$
|
12,836
|
|
|
$
|
8,196
|
|
Cash paid during the period for taxes
|
|
81
|
|
|
2,911
|
|
||
Cash dividends declared, paid in subsequent period
|
|
391
|
|
|
331
|
|
||
Securities purchased during the period, settled in subsequent period
|
|
1,635
|
|
|
8,705
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Basic earnings per share
|
|
|
|
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
4,001
|
|
|
$
|
2,834
|
|
|
$
|
6,833
|
|
|
$
|
5,266
|
|
Weighted-average common shares
|
|
6,583,515
|
|
|
4,972,759
|
|
|
6,565,760
|
|
|
4,757,243
|
|
||||
Basic earnings per common share
|
|
$
|
0.61
|
|
|
$
|
0.57
|
|
|
$
|
1.04
|
|
|
$
|
1.11
|
|
Diluted earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income
|
|
$
|
4,001
|
|
|
$
|
2,834
|
|
|
$
|
6,833
|
|
|
$
|
5,266
|
|
Weighted-average common shares
|
|
6,583,515
|
|
|
4,972,759
|
|
|
6,565,760
|
|
|
4,757,243
|
|
||||
Dilutive effect of warrants
|
|
6,539
|
|
|
9,743
|
|
|
12,208
|
|
|
10,518
|
|
||||
Dilutive effect of equity compensation
|
|
7,937
|
|
|
9,523
|
|
|
21,713
|
|
|
14,939
|
|
||||
Weighted-average common and incremental shares
|
|
6,597,991
|
|
|
4,992,025
|
|
|
6,599,681
|
|
|
4,782,700
|
|
||||
Diluted earnings per common share
|
|
$
|
0.61
|
|
|
$
|
0.57
|
|
|
$
|
1.04
|
|
|
$
|
1.10
|
|
Number of warrants excluded from the calculation of diluted earnings per share as the exercise prices were greater than the average market price of the Company’s common stock during the period
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
June 30, 2017
|
||||||||||||||
|
|
Amortized
|
|
Gross Unrealized
|
|
Fair
|
||||||||||
|
|
Cost
|
|
Gains
|
|
Losses
|
|
Value
|
||||||||
Securities available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Government-sponsored agencies
|
|
$
|
129,926
|
|
|
$
|
364
|
|
|
$
|
(608
|
)
|
|
$
|
129,682
|
|
Municipal securities
|
|
97,508
|
|
|
276
|
|
|
(2,713
|
)
|
|
95,071
|
|
||||
Mortgage-backed securities
|
|
231,591
|
|
|
54
|
|
|
(5,531
|
)
|
|
226,114
|
|
||||
Asset-backed securities
|
|
9,946
|
|
|
54
|
|
|
—
|
|
|
10,000
|
|
||||
Corporate securities
|
|
27,118
|
|
|
14
|
|
|
(1,172
|
)
|
|
25,960
|
|
||||
Other securities
|
|
3,000
|
|
|
—
|
|
|
(52
|
)
|
|
2,948
|
|
||||
Total available-for-sale
|
|
$
|
499,089
|
|
|
$
|
762
|
|
|
$
|
(10,076
|
)
|
|
$
|
489,775
|
|
|
|
June 30, 2017
|
||||||||||||||
|
|
Amortized
|
|
Gross Unrealized
|
|
Fair
|
||||||||||
|
|
Cost
|
|
Gains
|
|
Losses
|
|
Value
|
||||||||
Securities held-to-maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Municipal securities
|
|
$
|
10,168
|
|
|
$
|
25
|
|
|
$
|
(346
|
)
|
|
$
|
9,847
|
|
Corporate securities
|
|
9,047
|
|
|
126
|
|
|
(16
|
)
|
|
9,157
|
|
||||
Total held-to-maturity
|
|
$
|
19,215
|
|
|
$
|
151
|
|
|
$
|
(362
|
)
|
|
$
|
19,004
|
|
|
|
December 31, 2016
|
||||||||||||||
|
|
Amortized
|
|
Gross Unrealized
|
|
Fair
|
||||||||||
|
|
Cost
|
|
Gains
|
|
Losses
|
|
Value
|
||||||||
Securities available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Government-sponsored agencies
|
|
$
|
92,599
|
|
|
$
|
167
|
|
|
$
|
(870
|
)
|
|
$
|
91,896
|
|
Municipal securities
|
|
97,647
|
|
|
85
|
|
|
(5,846
|
)
|
|
91,886
|
|
||||
Mortgage-backed securities
|
|
238,354
|
|
|
—
|
|
|
(6,713
|
)
|
|
231,641
|
|
||||
Asset-backed securities
|
|
19,470
|
|
|
65
|
|
|
(1
|
)
|
|
19,534
|
|
||||
Corporate securities
|
|
20,000
|
|
|
—
|
|
|
(1,189
|
)
|
|
18,811
|
|
||||
Other securities
|
|
3,000
|
|
|
—
|
|
|
(68
|
)
|
|
2,932
|
|
||||
Total available-for-sale
|
|
$
|
471,070
|
|
|
$
|
317
|
|
|
$
|
(14,687
|
)
|
|
$
|
456,700
|
|
|
|
December 31, 2016
|
||||||||||||||
|
|
Amortized
|
|
Gross Unrealized
|
|
Fair
|
||||||||||
|
|
Cost
|
|
Gains
|
|
Losses
|
|
Value
|
||||||||
Securities held-to-maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Municipal securities
|
|
$
|
10,171
|
|
|
$
|
—
|
|
|
$
|
(498
|
)
|
|
$
|
9,673
|
|
Corporate securities
|
|
6,500
|
|
|
24
|
|
|
—
|
|
|
6,524
|
|
||||
Total held-to-maturity
|
|
$
|
16,671
|
|
|
$
|
24
|
|
|
$
|
(498
|
)
|
|
$
|
16,197
|
|
|
|
Available-for-Sale
|
||||||
|
|
Amortized
Cost
|
|
Fair
Value
|
||||
One to five years
|
|
$
|
1,344
|
|
|
$
|
1,316
|
|
Five to ten years
|
|
45,868
|
|
|
45,194
|
|
||
After ten years
|
|
207,340
|
|
|
204,203
|
|
||
|
|
254,552
|
|
|
250,713
|
|
||
Mortgage-backed securities
|
|
231,591
|
|
|
226,114
|
|
||
Asset-backed securities
|
|
9,946
|
|
|
10,000
|
|
||
Other securities
|
|
3,000
|
|
|
2,948
|
|
||
Total
|
|
$
|
499,089
|
|
|
$
|
489,775
|
|
|
|
June 30, 2017
|
||||||||||||||||||||||
|
|
Less Than 12 Months
|
|
12 Months or Longer
|
|
Total
|
||||||||||||||||||
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||
Securities available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Government-sponsored agencies
|
|
$
|
54,696
|
|
|
$
|
(497
|
)
|
|
$
|
8,652
|
|
|
$
|
(111
|
)
|
|
$
|
63,348
|
|
|
$
|
(608
|
)
|
Municipal securities
|
|
70,509
|
|
|
(2,573
|
)
|
|
2,109
|
|
|
(140
|
)
|
|
72,618
|
|
|
(2,713
|
)
|
||||||
Mortgage-backed securities
|
|
191,761
|
|
|
(4,734
|
)
|
|
22,075
|
|
|
(797
|
)
|
|
213,836
|
|
|
(5,531
|
)
|
||||||
Corporate securities
|
|
3,948
|
|
|
(65
|
)
|
|
18,893
|
|
|
(1,107
|
)
|
|
22,841
|
|
|
(1,172
|
)
|
||||||
Other securities
|
|
2,948
|
|
|
(52
|
)
|
|
—
|
|
|
—
|
|
|
2,948
|
|
|
(52
|
)
|
||||||
Total
|
|
$
|
323,862
|
|
|
$
|
(7,921
|
)
|
|
$
|
51,729
|
|
|
$
|
(2,155
|
)
|
|
$
|
375,591
|
|
|
$
|
(10,076
|
)
|
|
|
June 30, 2017
|
||||||||||||||||||||||
|
|
Less Than 12 Months
|
|
12 Months or Longer
|
|
Total
|
||||||||||||||||||
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||
Securities held-to-maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Municipal securities
|
|
$
|
8,269
|
|
|
$
|
(346
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,269
|
|
|
$
|
(346
|
)
|
Corporate securities
|
|
2,531
|
|
|
(16
|
)
|
|
—
|
|
|
—
|
|
|
2,531
|
|
|
(16
|
)
|
||||||
Total
|
|
$
|
10,800
|
|
|
$
|
(362
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,800
|
|
|
$
|
(362
|
)
|
|
|
December 31, 2016
|
||||||||||||||||||||||
|
|
Less Than 12 Months
|
|
12 Months or Longer
|
|
Total
|
||||||||||||||||||
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||
Securities available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Government-sponsored agencies
|
|
$
|
68,625
|
|
|
$
|
(840
|
)
|
|
$
|
260
|
|
|
$
|
(30
|
)
|
|
$
|
68,885
|
|
|
$
|
(870
|
)
|
Municipal securities
|
|
86,424
|
|
|
(5,846
|
)
|
|
—
|
|
|
—
|
|
|
86,424
|
|
|
(5,846
|
)
|
||||||
Mortgage-backed securities
|
|
231,641
|
|
|
(6,713
|
)
|
|
—
|
|
|
—
|
|
|
231,641
|
|
|
(6,713
|
)
|
||||||
Asset-backed securities
|
|
—
|
|
|
—
|
|
|
4,520
|
|
|
(1
|
)
|
|
4,520
|
|
|
(1
|
)
|
||||||
Corporate securities
|
|
—
|
|
|
—
|
|
|
18,811
|
|
|
(1,189
|
)
|
|
18,811
|
|
|
(1,189
|
)
|
||||||
Other securities
|
|
2,932
|
|
|
(68
|
)
|
|
—
|
|
|
—
|
|
|
2,932
|
|
|
(68
|
)
|
||||||
Total
|
|
$
|
389,622
|
|
|
$
|
(13,467
|
)
|
|
$
|
23,591
|
|
|
$
|
(1,220
|
)
|
|
$
|
413,213
|
|
|
$
|
(14,687
|
)
|
|
|
December 31, 2016
|
||||||||||||||||||||||
|
|
Less Than 12 Months
|
|
12 Months or Longer
|
|
Total
|
||||||||||||||||||
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||
Securities held-to-maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Municipal securities
|
|
$
|
9,673
|
|
|
$
|
(498
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9,673
|
|
|
$
|
(498
|
)
|
Total
|
|
$
|
9,673
|
|
|
$
|
(498
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9,673
|
|
|
$
|
(498
|
)
|
Details About Accumulated Other Comprehensive Loss Components
|
|
Amounts Reclassified from
Accumulated Other Comprehensive Loss for the
|
|
Affected Line Item in the
Statements of Income
|
||||||
|
Three Months Ended June 30, 2016
|
|
Six Months Ended June 30, 2016
|
|
||||||
Realized gains and losses on securities available-for-sale
|
|
|
|
|
|
|
|
|
||
Gain realized in earnings
|
|
$
|
177
|
|
|
$
|
177
|
|
|
Gain on sale of securities
|
Total reclassified amount before tax
|
|
177
|
|
|
177
|
|
|
Income Before Income Taxes
|
||
Tax expense
|
|
60
|
|
|
60
|
|
|
Income Tax Provision
|
||
Total reclassifications out of accumulated other comprehensive loss
|
|
$
|
117
|
|
|
$
|
117
|
|
|
Net Income
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
Commercial loans
|
|
|
|
|
|
|
||
Commercial and industrial
|
|
$
|
110,379
|
|
|
$
|
102,437
|
|
Owner-occupied commercial real estate
|
|
66,952
|
|
|
57,668
|
|
||
Investor commercial real estate
|
|
10,062
|
|
|
13,181
|
|
||
Construction
|
|
45,931
|
|
|
53,291
|
|
||
Single tenant lease financing
|
|
747,790
|
|
|
606,568
|
|
||
Public finance
|
|
179,873
|
|
|
—
|
|
||
Total commercial loans
|
|
1,160,987
|
|
|
833,145
|
|
||
Consumer loans
|
|
|
|
|
||||
Residential mortgage
|
|
292,997
|
|
|
205,554
|
|
||
Home equity
|
|
33,312
|
|
|
35,036
|
|
||
Other consumer
|
|
208,602
|
|
|
173,449
|
|
||
Total consumer loans
|
|
534,911
|
|
|
414,039
|
|
||
Total commercial and consumer loans
|
|
1,695,898
|
|
|
1,247,184
|
|
||
Deferred loan origination costs and premiums and discounts on purchased loans
|
|
2,523
|
|
|
3,605
|
|
||
Total loans
|
|
1,698,421
|
|
|
1,250,789
|
|
||
Allowance for loan losses
|
|
(13,194
|
)
|
|
(10,981
|
)
|
||
Net loans
|
|
$
|
1,685,227
|
|
|
$
|
1,239,808
|
|
|
Three Months Ended June 30, 2017
|
||||||||||||||||||
Allowance for loan losses:
|
Balance, Beginning of Period
|
|
Provision (Credit) Charged to Expense
|
|
Losses
Charged Off |
|
Recoveries
|
|
Balance,
End of Period |
||||||||||
Commercial and industrial
|
$
|
1,323
|
|
|
$
|
205
|
|
|
$
|
—
|
|
|
$
|
25
|
|
|
$
|
1,553
|
|
Owner-occupied commercial real estate
|
635
|
|
|
81
|
|
|
—
|
|
|
—
|
|
|
716
|
|
|||||
Investor commercial real estate
|
101
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
109
|
|
|||||
Construction
|
462
|
|
|
(67
|
)
|
|
—
|
|
|
—
|
|
|
395
|
|
|||||
Single tenant lease financing
|
6,853
|
|
|
550
|
|
|
—
|
|
|
—
|
|
|
7,403
|
|
|||||
Public finance
|
142
|
|
|
220
|
|
|
—
|
|
|
—
|
|
|
362
|
|
|||||
Residential mortgage
|
904
|
|
|
85
|
|
|
—
|
|
|
2
|
|
|
991
|
|
|||||
Home equity
|
101
|
|
|
(38
|
)
|
|
—
|
|
|
17
|
|
|
80
|
|
|||||
Other consumer
|
1,373
|
|
|
278
|
|
|
(170
|
)
|
|
104
|
|
|
1,585
|
|
|||||
Total
|
$
|
11,894
|
|
|
$
|
1,322
|
|
|
$
|
(170
|
)
|
|
$
|
148
|
|
|
$
|
13,194
|
|
|
Six Months Ended June 30, 2017
|
||||||||||||||||||
Allowance for loan losses:
|
Balance, Beginning of Period
|
|
Provision (Credit) Charged to Expense
|
|
Losses
Charged Off |
|
Recoveries
|
|
Balance,
End of Period |
||||||||||
Commercial and industrial
|
$
|
1,352
|
|
|
$
|
132
|
|
|
$
|
—
|
|
|
$
|
69
|
|
|
$
|
1,553
|
|
Owner-occupied commercial real estate
|
582
|
|
|
134
|
|
|
—
|
|
|
—
|
|
|
716
|
|
|||||
Investor commercial real estate
|
168
|
|
|
(59
|
)
|
|
—
|
|
|
—
|
|
|
109
|
|
|||||
Construction
|
544
|
|
|
(149
|
)
|
|
—
|
|
|
—
|
|
|
395
|
|
|||||
Single tenant lease financing
|
6,248
|
|
|
1,155
|
|
|
—
|
|
|
—
|
|
|
7,403
|
|
|||||
Public finance
|
—
|
|
|
362
|
|
|
—
|
|
|
—
|
|
|
362
|
|
|||||
Residential mortgage
|
754
|
|
|
235
|
|
|
—
|
|
|
2
|
|
|
991
|
|
|||||
Home equity
|
102
|
|
|
(42
|
)
|
|
—
|
|
|
20
|
|
|
80
|
|
|||||
Other consumer
|
1,231
|
|
|
589
|
|
|
(393
|
)
|
|
158
|
|
|
1,585
|
|
|||||
Total
|
$
|
10,981
|
|
|
$
|
2,357
|
|
|
$
|
(393
|
)
|
|
$
|
249
|
|
|
$
|
13,194
|
|
|
Three Months Ended June 30, 2016
|
||||||||||||||||||
Allowance for loan losses:
|
Balance, Beginning of Period
|
|
Provision (Credit) Charged to Expense
|
|
Losses
Charged Off |
|
Recoveries
|
|
Balance,
End of Period |
||||||||||
Commercial and industrial
|
$
|
1,383
|
|
|
$
|
451
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,834
|
|
Owner-occupied commercial real estate
|
475
|
|
|
(14
|
)
|
|
—
|
|
|
—
|
|
|
461
|
|
|||||
Investor commercial real estate
|
197
|
|
|
(26
|
)
|
|
—
|
|
|
—
|
|
|
171
|
|
|||||
Construction
|
563
|
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
555
|
|
|||||
Single tenant lease financing
|
4,678
|
|
|
381
|
|
|
—
|
|
|
—
|
|
|
5,059
|
|
|||||
Residential mortgage
|
871
|
|
|
42
|
|
|
(134
|
)
|
|
2
|
|
|
781
|
|
|||||
Home equity
|
120
|
|
|
30
|
|
|
(33
|
)
|
|
4
|
|
|
121
|
|
|||||
Other consumer
|
933
|
|
|
68
|
|
|
(65
|
)
|
|
98
|
|
|
1,034
|
|
|||||
Total
|
$
|
9,220
|
|
|
$
|
924
|
|
|
$
|
(232
|
)
|
|
$
|
104
|
|
|
$
|
10,016
|
|
|
Six Months Ended June 30, 2016
|
||||||||||||||||||
Allowance for loan losses:
|
Balance, Beginning of Period
|
|
Provision (Credit) Charged to Expense
|
|
Losses
Charged Off |
|
Recoveries
|
|
Balance,
End of Period |
||||||||||
Commercial and industrial
|
$
|
1,367
|
|
|
$
|
467
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,834
|
|
Owner-occupied commercial real estate
|
476
|
|
|
(15
|
)
|
|
—
|
|
|
—
|
|
|
461
|
|
|||||
Investor commercial real estate
|
212
|
|
|
(41
|
)
|
|
—
|
|
|
—
|
|
|
171
|
|
|||||
Construction
|
500
|
|
|
55
|
|
|
—
|
|
|
—
|
|
|
555
|
|
|||||
Single tenant lease financing
|
3,931
|
|
|
1,128
|
|
|
—
|
|
|
—
|
|
|
5,059
|
|
|||||
Residential mortgage
|
896
|
|
|
(8
|
)
|
|
(134
|
)
|
|
27
|
|
|
781
|
|
|||||
Home equity
|
125
|
|
|
23
|
|
|
(33
|
)
|
|
6
|
|
|
121
|
|
|||||
Other consumer
|
844
|
|
|
261
|
|
|
(214
|
)
|
|
143
|
|
|
1,034
|
|
|||||
Total
|
$
|
8,351
|
|
|
$
|
1,870
|
|
|
$
|
(381
|
)
|
|
$
|
176
|
|
|
$
|
10,016
|
|
|
Loans
|
|
Allowance for Loan Losses
|
||||||||||||||||||||
June 30, 2017
|
Ending Balance:
Collectively Evaluated for Impairment
|
|
Ending Balance:
Individually Evaluated for Impairment
|
|
Ending Balance
|
|
Ending Balance:
Collectively Evaluated for Impairment |
|
Ending Balance:
Individually Evaluated for Impairment |
|
Ending Balance
|
||||||||||||
Commercial and industrial
|
$
|
108,530
|
|
|
$
|
1,849
|
|
|
$
|
110,379
|
|
|
$
|
1,508
|
|
|
$
|
45
|
|
|
$
|
1,553
|
|
Owner-occupied commercial real estate
|
66,952
|
|
|
—
|
|
|
66,952
|
|
|
716
|
|
|
—
|
|
|
716
|
|
||||||
Investor commercial real estate
|
10,062
|
|
|
—
|
|
|
10,062
|
|
|
109
|
|
|
—
|
|
|
109
|
|
||||||
Construction
|
45,931
|
|
|
—
|
|
|
45,931
|
|
|
395
|
|
|
—
|
|
|
395
|
|
||||||
Single tenant lease financing
|
747,790
|
|
|
—
|
|
|
747,790
|
|
|
7,403
|
|
|
—
|
|
|
7,403
|
|
||||||
Public finance
|
179,873
|
|
|
—
|
|
|
179,873
|
|
|
362
|
|
|
—
|
|
|
362
|
|
||||||
Residential mortgage
|
291,363
|
|
|
1,634
|
|
|
292,997
|
|
|
991
|
|
|
—
|
|
|
991
|
|
||||||
Home equity
|
33,312
|
|
|
—
|
|
|
33,312
|
|
|
80
|
|
|
—
|
|
|
80
|
|
||||||
Other consumer
|
208,510
|
|
|
92
|
|
|
208,602
|
|
|
1,585
|
|
|
—
|
|
|
1,585
|
|
||||||
Total
|
$
|
1,692,323
|
|
|
$
|
3,575
|
|
|
$
|
1,695,898
|
|
|
$
|
13,149
|
|
|
$
|
45
|
|
|
$
|
13,194
|
|
|
Loans
|
|
Allowance for Loan Losses
|
||||||||||||||||||||
December 31, 2016
|
Ending Balance:
Collectively Evaluated for Impairment |
|
Ending Balance:
Individually Evaluated for Impairment |
|
Ending Balance
|
|
Ending Balance:
Collectively Evaluated for Impairment |
|
Ending Balance:
Individually Evaluated for Impairment |
|
Ending Balance
|
||||||||||||
Commercial and industrial
|
$
|
102,437
|
|
|
$
|
—
|
|
|
$
|
102,437
|
|
|
$
|
1,352
|
|
|
$
|
—
|
|
|
$
|
1,352
|
|
Owner-occupied commercial real estate
|
57,668
|
|
|
—
|
|
|
57,668
|
|
|
582
|
|
|
—
|
|
|
582
|
|
||||||
Investor commercial real estate
|
13,181
|
|
|
—
|
|
|
13,181
|
|
|
168
|
|
|
—
|
|
|
168
|
|
||||||
Construction
|
53,291
|
|
|
—
|
|
|
53,291
|
|
|
544
|
|
|
—
|
|
|
544
|
|
||||||
Single tenant lease financing
|
606,568
|
|
|
—
|
|
|
606,568
|
|
|
6,248
|
|
|
—
|
|
|
6,248
|
|
||||||
Residential mortgage
|
203,842
|
|
|
1,712
|
|
|
205,554
|
|
|
754
|
|
|
—
|
|
|
754
|
|
||||||
Home equity
|
35,036
|
|
|
—
|
|
|
35,036
|
|
|
102
|
|
|
—
|
|
|
102
|
|
||||||
Other consumer
|
173,321
|
|
|
128
|
|
|
173,449
|
|
|
1,231
|
|
|
—
|
|
|
1,231
|
|
||||||
Total
|
$
|
1,245,344
|
|
|
$
|
1,840
|
|
|
$
|
1,247,184
|
|
|
$
|
10,981
|
|
|
$
|
—
|
|
|
$
|
10,981
|
|
•
|
“Pass” - Higher quality loans that do not fit any of the other categories described below.
|
•
|
“Special Mention” - Loans that possess some credit deficiency or potential weakness, which deserves close attention.
|
•
|
“Substandard” - Loans that possess a defined weakness or weaknesses that jeopardize the liquidation of the debt. Loans characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Loans that are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any.
|
•
|
“Doubtful” - Such loans have been placed on nonaccrual status and may be heavily dependent upon collateral possessing a value that is difficult to determine or based upon some near-term event that lacks clear certainty. These loans have all of the weaknesses of those classified as Substandard; however, based on existing conditions, these weaknesses make full collection of the principal balance highly improbable.
|
•
|
“Loss” - Loans that are considered uncollectible and of such little value that continuing to carry them as assets is not warranted.
|
|
June 30, 2017
|
||||||||||||||
|
Pass
|
|
Special Mention
|
|
Substandard
|
|
Total
|
||||||||
Commercial and industrial
|
$
|
98,311
|
|
|
$
|
10,200
|
|
|
$
|
1,868
|
|
|
$
|
110,379
|
|
Owner-occupied commercial real estate
|
62,517
|
|
|
4,426
|
|
|
9
|
|
|
66,952
|
|
||||
Investor commercial real estate
|
10,062
|
|
|
—
|
|
|
—
|
|
|
10,062
|
|
||||
Construction
|
45,931
|
|
|
—
|
|
|
—
|
|
|
45,931
|
|
||||
Single tenant lease financing
|
741,835
|
|
|
5,955
|
|
|
—
|
|
|
747,790
|
|
||||
Public finance
|
179,873
|
|
|
—
|
|
|
—
|
|
|
179,873
|
|
||||
Total commercial loans
|
$
|
1,138,529
|
|
|
$
|
20,581
|
|
|
$
|
1,877
|
|
|
$
|
1,160,987
|
|
|
June 30, 2017
|
||||||||||
|
Performing
|
|
Nonaccrual
|
|
Total
|
||||||
Residential mortgage
|
$
|
291,788
|
|
|
$
|
1,209
|
|
|
$
|
292,997
|
|
Home equity
|
33,312
|
|
|
—
|
|
|
33,312
|
|
|||
Other consumer
|
208,573
|
|
|
29
|
|
|
208,602
|
|
|||
Total consumer loans
|
$
|
533,673
|
|
|
$
|
1,238
|
|
|
$
|
534,911
|
|
|
December 31, 2016
|
||||||||||||||
|
Pass
|
|
Special Mention
|
|
Substandard
|
|
Total
|
||||||||
Commercial and industrial
|
$
|
99,200
|
|
|
$
|
2,746
|
|
|
$
|
491
|
|
|
$
|
102,437
|
|
Owner-occupied commercial real estate
|
57,657
|
|
|
—
|
|
|
11
|
|
|
57,668
|
|
||||
Investor commercial real estate
|
13,181
|
|
|
—
|
|
|
—
|
|
|
13,181
|
|
||||
Construction
|
53,291
|
|
|
—
|
|
|
—
|
|
|
53,291
|
|
||||
Single tenant lease financing
|
605,190
|
|
|
1,378
|
|
|
—
|
|
|
606,568
|
|
||||
Total commercial loans
|
$
|
828,519
|
|
|
$
|
4,124
|
|
|
$
|
502
|
|
|
$
|
833,145
|
|
|
December 31, 2016
|
||||||||||
|
Performing
|
|
Nonaccrual
|
|
Total
|
||||||
Residential mortgage
|
$
|
204,530
|
|
|
$
|
1,024
|
|
|
$
|
205,554
|
|
Home equity
|
35,036
|
|
|
—
|
|
|
35,036
|
|
|||
Other consumer
|
173,390
|
|
|
59
|
|
|
173,449
|
|
|||
Total consumer loans
|
$
|
412,956
|
|
|
$
|
1,083
|
|
|
$
|
414,039
|
|
|
|
June 30, 2017
|
||||||||||||||||||||||||||||||
|
|
30-59
Days Past Due |
|
60-89
Days Past Due |
|
90 Days
or More Past Due |
|
Total
Past Due |
|
Current
|
|
Total
Commercial and Consumer Loans |
|
Non-
accrual Loans |
|
Total Loans
90 Days or More Past Due and Accruing |
||||||||||||||||
Commercial and industrial
|
|
$
|
228
|
|
|
$
|
13
|
|
|
$
|
88
|
|
|
$
|
329
|
|
|
$
|
110,050
|
|
|
$
|
110,379
|
|
|
$
|
1,850
|
|
|
$
|
—
|
|
Owner-occupied commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
66,952
|
|
|
66,952
|
|
|
—
|
|
|
—
|
|
||||||||
Investor commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,062
|
|
|
10,062
|
|
|
—
|
|
|
—
|
|
||||||||
Construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
45,931
|
|
|
45,931
|
|
|
—
|
|
|
—
|
|
||||||||
Single tenant lease financing
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
747,790
|
|
|
747,790
|
|
|
—
|
|
|
—
|
|
||||||||
Public finance
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
179,873
|
|
|
179,873
|
|
|
—
|
|
|
—
|
|
||||||||
Residential mortgage
|
|
—
|
|
|
—
|
|
|
1,518
|
|
|
1,518
|
|
|
291,479
|
|
|
292,997
|
|
|
1,209
|
|
|
341
|
|
||||||||
Home equity
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
33,312
|
|
|
33,312
|
|
|
—
|
|
|
—
|
|
||||||||
Other consumer
|
|
109
|
|
|
54
|
|
|
9
|
|
|
172
|
|
|
208,430
|
|
|
208,602
|
|
|
29
|
|
|
9
|
|
||||||||
Total
|
|
$
|
337
|
|
|
$
|
67
|
|
|
$
|
1,615
|
|
|
$
|
2,019
|
|
|
$
|
1,693,879
|
|
|
$
|
1,695,898
|
|
|
$
|
3,088
|
|
|
$
|
350
|
|
|
|
December 31, 2016
|
||||||||||||||||||||||||||||||
|
|
30-59
Days Past Due |
|
60-89
Days Past Due |
|
90 Days
or More Past Due |
|
Total
Past Due |
|
Current
|
|
Total
Commercial and C onsumer Loans |
|
Non-
accrual Loans |
|
Total Loans
90 Days or More Past Due and Accruing |
||||||||||||||||
Commercial and industrial
|
|
$
|
27
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
27
|
|
|
$
|
102,410
|
|
|
$
|
102,437
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Owner-occupied commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
57,668
|
|
|
57,668
|
|
|
—
|
|
|
—
|
|
||||||||
Investor commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,181
|
|
|
13,181
|
|
|
—
|
|
|
—
|
|
||||||||
Construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
53,291
|
|
|
53,291
|
|
|
—
|
|
|
—
|
|
||||||||
Single tenant lease financing
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
606,568
|
|
|
606,568
|
|
|
—
|
|
|
—
|
|
||||||||
Residential mortgage
|
|
—
|
|
|
347
|
|
|
991
|
|
|
1,338
|
|
|
204,216
|
|
|
205,554
|
|
|
1,024
|
|
|
—
|
|
||||||||
Home equity
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
35,036
|
|
|
35,036
|
|
|
—
|
|
|
—
|
|
||||||||
Other consumer
|
|
173
|
|
|
91
|
|
|
25
|
|
|
289
|
|
|
173,160
|
|
|
173,449
|
|
|
59
|
|
|
—
|
|
||||||||
Total
|
|
$
|
200
|
|
|
$
|
438
|
|
|
$
|
1,016
|
|
|
$
|
1,654
|
|
|
$
|
1,245,530
|
|
|
$
|
1,247,184
|
|
|
$
|
1,083
|
|
|
$
|
—
|
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
|
|
Recorded
Balance |
|
Unpaid
Principal Balance |
|
Specific
Allowance |
|
Recorded
Balance |
|
Unpaid
Principal Balance |
|
Specific
Allowance |
||||||||||||
Loans without a specific valuation allowance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial and industrial
|
|
$
|
1,769
|
|
|
$
|
1,769
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Residential mortgage
|
|
1,634
|
|
|
1,745
|
|
|
—
|
|
|
1,712
|
|
|
1,824
|
|
|
—
|
|
||||||
Other consumer
|
|
92
|
|
|
123
|
|
|
—
|
|
|
128
|
|
|
184
|
|
|
—
|
|
||||||
Total
|
|
3,495
|
|
|
3,637
|
|
|
—
|
|
|
1,840
|
|
|
2,008
|
|
|
—
|
|
||||||
Loans with a specific valuation allowance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial and industrial
|
|
80
|
|
|
80
|
|
|
45
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
|
80
|
|
|
80
|
|
|
45
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total impaired loans
|
|
$
|
3,575
|
|
|
$
|
3,717
|
|
|
$
|
45
|
|
|
$
|
1,840
|
|
|
$
|
2,008
|
|
|
$
|
—
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||||||
|
|
June 30, 2017
|
|
June 30, 2016
|
||||||||||||||||||||||||||||
|
|
Average
Balance |
|
Interest
Income |
|
Average
Balance |
|
Interest
Income |
|
Average
Balance |
|
Interest
Income |
|
Average
Balance |
|
Interest
Income |
||||||||||||||||
Loans without a specific valuation allowance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial
|
|
$
|
1,996
|
|
|
$
|
—
|
|
|
$
|
1,265
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Residential mortgage
|
|
1,636
|
|
|
—
|
|
|
1,664
|
|
|
—
|
|
|
1,489
|
|
|
1
|
|
|
1,278
|
|
|
4
|
|
||||||||
Other consumer
|
|
105
|
|
|
—
|
|
|
123
|
|
|
—
|
|
|
138
|
|
|
2
|
|
|
147
|
|
|
4
|
|
||||||||
Total
|
|
3,737
|
|
|
—
|
|
|
3,052
|
|
|
—
|
|
|
1,627
|
|
|
3
|
|
|
1,425
|
|
|
8
|
|
||||||||
Loans with a specific valuation allowance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial
|
|
61
|
|
|
—
|
|
|
$
|
44
|
|
|
$
|
—
|
|
|
1,179
|
|
|
—
|
|
|
$
|
590
|
|
|
$
|
—
|
|
||||
Total
|
|
61
|
|
|
—
|
|
|
44
|
|
|
—
|
|
|
1,179
|
|
|
—
|
|
|
590
|
|
|
—
|
|
||||||||
Total impaired loans
|
|
$
|
3,798
|
|
|
$
|
—
|
|
|
$
|
3,096
|
|
|
$
|
—
|
|
|
$
|
2,806
|
|
|
$
|
3
|
|
|
$
|
2,015
|
|
|
$
|
8
|
|
|
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
Land
|
|
$
|
2,500
|
|
|
$
|
2,500
|
|
Building and improvements
|
|
5,666
|
|
|
5,441
|
|
||
Furniture and equipment
|
|
7,223
|
|
|
7,079
|
|
||
Less: accumulated depreciation
|
|
(5,722
|
)
|
|
(4,976
|
)
|
||
Total
|
|
$
|
9,667
|
|
|
$
|
10,044
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||||
|
Principal
|
|
Unamortized Discount and Debt Issuance Costs
|
|
Principal
|
|
Unamortized Discount and Debt Issuance Costs
|
||||||||
2021 Debenture
|
$
|
3,000
|
|
|
$
|
—
|
|
|
$
|
3,000
|
|
|
$
|
—
|
|
2025 Note
|
10,000
|
|
|
(198
|
)
|
|
10,000
|
|
|
(210
|
)
|
||||
2026 Notes
|
25,000
|
|
|
(1,150
|
)
|
|
25,000
|
|
|
(1,212
|
)
|
||||
Total
|
$
|
38,000
|
|
|
$
|
(1,348
|
)
|
|
$
|
38,000
|
|
|
$
|
(1,422
|
)
|
|
Restricted Stock Units
|
|
Weighted-Average Grant Date Fair Value Per Share
|
|
Restricted Stock Awards
|
|
Weighted-Average Grant Date Fair Value Per Share
|
|
Deferred Stock Units
|
|
Weighted-Average Grant Date Fair Value Per Share
|
|||||||||
Nonvested at December 31, 2016
|
49,781
|
|
|
$
|
23.07
|
|
|
16,330
|
|
|
$
|
19.06
|
|
|
—
|
|
|
$
|
—
|
|
Granted
|
42,542
|
|
|
30.99
|
|
|
5,628
|
|
|
31.00
|
|
|
4
|
|
|
29.03
|
|
|||
Vested
|
(19,835
|
)
|
|
22.43
|
|
|
(15,817
|
)
|
|
20.06
|
|
|
(4
|
)
|
|
29.03
|
|
|||
Nonvested at June 30, 2017
|
72,488
|
|
|
$
|
27.89
|
|
|
6,141
|
|
|
$
|
27.44
|
|
|
—
|
|
|
$
|
—
|
|
|
|
Deferred Stock Rights
|
|
Outstanding, beginning of period
|
|
82,377
|
|
Granted
|
|
310
|
|
Exercised
|
|
—
|
|
Outstanding, end of period
|
|
82,687
|
|
Level 1
|
Quoted prices in active markets for identical assets or liabilities
|
Level 2
|
Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities
|
Level 3
|
Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities
|
|
|
|
|
June 30, 2017
Fair Value Measurements Using |
||||||||||||
|
|
Fair
Value
|
|
Quoted Prices
in Active Markets for Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
U.S. Government-sponsored agencies
|
|
$
|
129,682
|
|
|
$
|
—
|
|
|
$
|
129,682
|
|
|
$
|
—
|
|
Municipal securities
|
|
95,071
|
|
|
—
|
|
|
95,071
|
|
|
—
|
|
||||
Mortgage-backed securities
|
|
226,114
|
|
|
—
|
|
|
226,114
|
|
|
—
|
|
||||
Asset-backed securities
|
|
10,000
|
|
|
—
|
|
|
10,000
|
|
|
—
|
|
||||
Corporate securities
|
|
25,960
|
|
|
—
|
|
|
25,960
|
|
|
—
|
|
||||
Other securities
|
|
2,948
|
|
|
2,948
|
|
|
—
|
|
|
—
|
|
||||
Total available-for-sale securities
|
|
489,775
|
|
|
2,948
|
|
|
486,827
|
|
|
—
|
|
||||
Loans held-for-sale (mandatory pricing agreements)
|
|
16,996
|
|
|
—
|
|
|
16,996
|
|
|
—
|
|
||||
Forward contracts
|
|
219
|
|
|
219
|
|
|
—
|
|
|
—
|
|
||||
IRLCs
|
|
652
|
|
|
—
|
|
|
—
|
|
|
652
|
|
|
|
|
|
December 31, 2016
Fair Value Measurements Using
|
||||||||||||
|
|
Fair
Value
|
|
Quoted Prices
in Active Markets for Identical Assets (Level 1) |
|
Significant
Other Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
||||||||
U.S. Government-sponsored agencies
|
|
$
|
91,896
|
|
|
$
|
—
|
|
|
$
|
91,896
|
|
|
$
|
—
|
|
Municipal securities
|
|
91,886
|
|
|
—
|
|
|
91,886
|
|
|
—
|
|
||||
Mortgage-backed securities
|
|
231,641
|
|
|
—
|
|
|
231,641
|
|
|
—
|
|
||||
Asset-backed securities
|
|
19,534
|
|
|
—
|
|
|
19,534
|
|
|
—
|
|
||||
Corporate securities
|
|
18,811
|
|
|
—
|
|
|
18,811
|
|
|
—
|
|
||||
Other securities
|
|
2,932
|
|
|
2,932
|
|
|
—
|
|
|
—
|
|
||||
Total available-for-sale securities
|
|
456,700
|
|
|
2,932
|
|
|
453,768
|
|
|
—
|
|
||||
Loans held-for-sale (mandatory pricing agreements)
|
|
27,101
|
|
|
—
|
|
|
27,101
|
|
|
—
|
|
||||
Forward contracts
|
|
438
|
|
|
438
|
|
|
—
|
|
|
—
|
|
||||
IRLCs
|
|
610
|
|
|
—
|
|
|
—
|
|
|
610
|
|
|
|
Three Months Ended
|
||
|
|
Interest Rate Lock Commitments
|
||
Balance, April 1, 2017
|
|
$
|
645
|
|
Total realized gains
|
|
|
||
Included in net income
|
|
7
|
|
|
Balance, June 30, 2017
|
|
$
|
652
|
|
|
|
|
||
Balance, April 1, 2016
|
|
$
|
1,283
|
|
Total realized gains
|
|
|
||
Included in net income
|
|
441
|
|
|
Balance, June 30, 2016
|
|
$
|
1,724
|
|
|
|
Six Months Ended
|
||
|
|
Interest Rate Lock Commitments
|
||
Balance, January 1, 2017
|
|
$
|
610
|
|
Total realized gains
|
|
|
|
|
Included in net income
|
|
42
|
|
|
Included in other comprehensive income (loss)
|
|
—
|
|
|
Balance, June 30, 2017
|
|
$
|
652
|
|
|
|
|
||
Balance, January 1, 2016
|
|
$
|
582
|
|
Total realized gains
|
|
|
||
Included in net income
|
|
1,142
|
|
|
Included in other comprehensive income (loss)
|
|
—
|
|
|
Balance, June 30, 2016
|
|
$
|
1,724
|
|
|
|
|
|
Fair Value at
June 30, 2017 |
|
Valuation
Technique
|
|
Significant Unobservable
Inputs
|
|
Range
|
||
IRLCs
|
|
$
|
652
|
|
|
Discounted cash flow
|
|
Loan closing rates
|
|
42% - 99%
|
|
|
Fair Value at
December 31, 2016 |
|
Valuation
Technique
|
|
Significant Unobservable
Inputs
|
|
Range
|
||
IRLCs
|
|
$
|
610
|
|
|
Discounted cash flow
|
|
Loan closing rates
|
|
43% - 99%
|
|
|
June 30, 2017
Fair Value Measurements Using |
||||||||||||||||||
|
|
Carrying
Amount
|
|
Fair Value
|
|
Quoted Prices
In Active
Market for
Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||||
Cash and cash equivalents
|
|
$
|
66,243
|
|
|
$
|
66,243
|
|
|
$
|
66,243
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Securities held-to-maturity
|
|
19,215
|
|
|
19,004
|
|
|
—
|
|
|
19,004
|
|
|
—
|
|
|||||
Loans held-for-sale (best efforts pricing agreements)
|
|
10,339
|
|
|
10,339
|
|
|
—
|
|
|
10,339
|
|
|
—
|
|
|||||
Net loans
|
|
1,685,227
|
|
|
1,688,719
|
|
|
—
|
|
|
—
|
|
|
1,688,719
|
|
|||||
Accrued interest receivable
|
|
8,479
|
|
|
8,479
|
|
|
8,479
|
|
|
—
|
|
|
—
|
|
|||||
Federal Home Loan Bank of Indianapolis stock
|
|
19,575
|
|
|
19,575
|
|
|
—
|
|
|
19,575
|
|
|
—
|
|
|||||
Deposits
|
|
1,732,112
|
|
|
1,711,020
|
|
|
553,350
|
|
|
—
|
|
|
1,157,670
|
|
|||||
Advances from Federal Home Loan Bank
|
|
435,183
|
|
|
424,079
|
|
|
—
|
|
|
424,079
|
|
|
—
|
|
|||||
Subordinated debt
|
|
36,652
|
|
|
39,759
|
|
|
26,270
|
|
|
13,489
|
|
|
—
|
|
|||||
Accrued interest payable
|
|
210
|
|
|
210
|
|
|
210
|
|
|
—
|
|
|
—
|
|
|
|
December 31, 2016
Fair Value Measurements Using |
||||||||||||||||||
|
|
Carrying
Amount
|
|
Fair Value
|
|
Quoted Prices
In Active
Market for
Identical
Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||||
Cash and cash equivalents
|
|
$
|
39,452
|
|
|
$
|
39,452
|
|
|
$
|
39,452
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest-bearing time deposits
|
|
250
|
|
|
250
|
|
|
250
|
|
|
—
|
|
|
—
|
|
|||||
Securities held-to-maturity
|
|
16,671
|
|
|
16,197
|
|
|
—
|
|
|
16,197
|
|
|
—
|
|
|||||
Net loans
|
|
1,239,808
|
|
|
1,233,937
|
|
|
—
|
|
|
—
|
|
|
1,233,937
|
|
|||||
Accrued interest receivable
|
|
6,708
|
|
|
6,708
|
|
|
6,708
|
|
|
—
|
|
|
—
|
|
|||||
Federal Home Loan Bank of Indianapolis stock
|
|
8,910
|
|
|
8,910
|
|
|
—
|
|
|
8,910
|
|
|
—
|
|
|||||
Deposits
|
|
1,462,867
|
|
|
1,441,794
|
|
|
492,435
|
|
|
—
|
|
|
949,359
|
|
|||||
Advances from Federal Home Loan Bank
|
|
189,981
|
|
|
186,258
|
|
|
—
|
|
|
186,258
|
|
|
—
|
|
|||||
Subordinated debt
|
|
36,578
|
|
|
38,425
|
|
|
24,900
|
|
|
13,525
|
|
|
—
|
|
|||||
Accrued interest payable
|
|
112
|
|
|
112
|
|
|
112
|
|
|
—
|
|
|
—
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Gain on loans sold
|
$
|
1,586
|
|
|
$
|
2,896
|
|
|
$
|
3,423
|
|
|
$
|
4,496
|
|
Gain resulting from the change in fair value of loans held-for-sale
|
152
|
|
|
632
|
|
|
525
|
|
|
986
|
|
||||
Gain (loss) resulting from the change in fair value of derivatives
|
417
|
|
|
(233
|
)
|
|
(177
|
)
|
|
67
|
|
||||
Net revenue from mortgage banking activities
|
$
|
2,155
|
|
|
$
|
3,295
|
|
|
$
|
3,771
|
|
|
$
|
5,549
|
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||||
|
|
Notional
Amount
|
|
Fair
Value
|
|
Notional
Amount
|
|
Fair
Value
|
||||||||
Asset Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Derivatives not designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
IRLCs
|
|
$
|
43,986
|
|
|
$
|
652
|
|
|
$
|
36,311
|
|
|
$
|
610
|
|
Forward contracts
|
|
63,000
|
|
|
219
|
|
|
61,000
|
|
|
438
|
|
|
|
Amount of gain / (loss) recognized in the three months ended
|
|
Amount of gain / (loss) recognized in the six months ended
|
||||||||||||
|
|
June 30, 2017
|
|
June 30, 2016
|
|
June 30, 2017
|
|
June 30, 2016
|
||||||||
Asset Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Derivatives not designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
IRLCs
|
|
$
|
7
|
|
|
$
|
441
|
|
|
$
|
42
|
|
|
$
|
1,142
|
|
Forward contracts
|
|
410
|
|
|
—
|
|
|
(219
|
)
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Liability Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Derivatives not designated as hedging instruments
|
|
|
|
|
|
|
|
|
||||||||
Forward contracts
|
|
$
|
—
|
|
|
$
|
(674
|
)
|
|
$
|
—
|
|
|
$
|
(1,075
|
)
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
(dollars in thousands except for per share data)
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||||||
June 30,
2017 |
|
March 31,
2017 |
|
December 31,
2016 |
|
September 30,
2016 |
|
June 30,
2016 |
|
June 30,
2017 |
|
June 30,
2016 |
|||||||||||||||
Income Statement Summary:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net interest income
|
$
|
12,974
|
|
|
$
|
11,457
|
|
|
$
|
10,904
|
|
|
$
|
10,338
|
|
|
$
|
9,306
|
|
|
$
|
24,431
|
|
|
$
|
18,447
|
|
Provision for loan losses
|
1,322
|
|
|
1,035
|
|
|
256
|
|
|
2,204
|
|
|
924
|
|
|
2,357
|
|
|
1,870
|
|
|||||||
Noninterest income
|
2,736
|
|
|
2,131
|
|
|
2,891
|
|
|
4,898
|
|
|
3,748
|
|
|
4,867
|
|
|
6,288
|
|
|||||||
Noninterest expense
|
8,923
|
|
|
8,698
|
|
|
8,158
|
|
|
8,413
|
|
|
7,875
|
|
|
17,621
|
|
|
14,880
|
|
|||||||
Income tax provision
|
1,464
|
|
|
1,023
|
|
|
1,671
|
|
|
1,521
|
|
|
1,421
|
|
|
2,487
|
|
|
2,719
|
|
|||||||
Net income
|
$
|
4,001
|
|
|
$
|
2,832
|
|
|
$
|
3,710
|
|
|
$
|
3,098
|
|
|
$
|
2,834
|
|
|
$
|
6,833
|
|
|
$
|
5,266
|
|
Per Share Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Earnings per share - basic
|
$
|
0.61
|
|
|
$
|
0.43
|
|
|
$
|
0.65
|
|
|
$
|
0.55
|
|
|
$
|
0.57
|
|
|
$
|
1.04
|
|
|
$
|
1.11
|
|
Earnings per share - diluted
|
$
|
0.61
|
|
|
$
|
0.43
|
|
|
$
|
0.64
|
|
|
$
|
0.55
|
|
|
$
|
0.57
|
|
|
$
|
1.04
|
|
|
$
|
1.10
|
|
Dividends declared per share
|
$
|
0.06
|
|
|
$
|
0.06
|
|
|
$
|
0.06
|
|
|
$
|
0.06
|
|
|
$
|
0.06
|
|
|
$
|
0.12
|
|
|
$
|
0.12
|
|
Book value per common share
|
$
|
25.15
|
|
|
$
|
24.24
|
|
|
$
|
23.76
|
|
|
$
|
24.79
|
|
|
$
|
24.52
|
|
|
$
|
25.15
|
|
|
$
|
24.52
|
|
Tangible book value per common share
1
|
$
|
24.43
|
|
|
$
|
23.52
|
|
|
$
|
23.04
|
|
|
$
|
23.94
|
|
|
$
|
23.67
|
|
|
$
|
24.43
|
|
|
$
|
23.67
|
|
Common shares outstanding
|
6,513,577
|
|
|
6,497,662
|
|
|
6,478,050
|
|
|
5,533,050
|
|
|
5,533,050
|
|
|
6,513,577
|
|
|
5,533,050
|
|
|||||||
Average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Basic
|
6,583,515
|
|
|
6,547,807
|
|
|
5,722,615
|
|
|
5,597,867
|
|
|
4,972,759
|
|
|
6,565,760
|
|
|
4,757,243
|
|
|||||||
Diluted
|
6,597,991
|
|
|
6,602,200
|
|
|
5,761,931
|
|
|
5,622,181
|
|
|
4,992,025
|
|
|
6,599,681
|
|
|
4,782,700
|
|
|||||||
Performance Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Return on average assets
|
0.73
|
%
|
|
0.60
|
%
|
|
0.81
|
%
|
|
0.71
|
%
|
|
0.71
|
%
|
|
0.67
|
%
|
|
0.72
|
%
|
|||||||
Return on average shareholders’ equity
|
9.95
|
%
|
|
7.42
|
%
|
|
10.85
|
%
|
|
9.08
|
%
|
|
9.67
|
%
|
|
8.72
|
%
|
|
9.45
|
%
|
|||||||
Return on average tangible common equity
1
|
10.25
|
%
|
|
7.65
|
%
|
|
11.24
|
%
|
|
9.41
|
%
|
|
10.07
|
%
|
|
8.99
|
%
|
|
9.86
|
%
|
|||||||
Net interest margin
|
2.43
|
%
|
|
2.50
|
%
|
|
2.42
|
%
|
|
2.42
|
%
|
|
2.39
|
%
|
|
2.46
|
%
|
|
2.57
|
%
|
|||||||
Net interest margin - FTE
1,2
|
2.53
|
%
|
|
2.57
|
%
|
|
2.48
|
%
|
|
2.47
|
%
|
|
2.43
|
%
|
|
2.55
|
%
|
|
2.60
|
%
|
|||||||
Capital Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total shareholders’ equity to assets
|
6.88
|
%
|
|
7.67
|
%
|
|
8.30
|
%
|
|
7.52
|
%
|
|
7.97
|
%
|
|
6.88
|
%
|
|
7.97
|
%
|
|||||||
Tangible common equity to tangible assets ratio
1
|
6.70
|
%
|
|
7.46
|
%
|
|
8.07
|
%
|
|
7.28
|
%
|
|
7.72
|
%
|
|
6.70
|
%
|
|
7.72
|
%
|
|||||||
Tier 1 leverage ratio
|
7.50
|
%
|
|
8.41
|
%
|
|
8.65
|
%
|
|
7.62
|
%
|
|
8.08
|
%
|
|
7.50
|
%
|
|
8.08
|
%
|
|||||||
Common equity tier 1 capital ratio
|
9.74
|
%
|
|
10.88
|
%
|
|
11.54
|
%
|
|
10.07
|
%
|
|
10.66
|
%
|
|
9.74
|
%
|
|
10.66
|
%
|
|||||||
Tier 1 capital ratio
|
9.74
|
%
|
|
10.88
|
%
|
|
11.54
|
%
|
|
10.07
|
%
|
|
10.66
|
%
|
|
9.74
|
%
|
|
10.66
|
%
|
|||||||
Total risk-based capital ratio
|
12.68
|
%
|
|
14.16
|
%
|
|
15.01
|
%
|
|
13.67
|
%
|
|
12.54
|
%
|
|
12.68
|
%
|
|
12.54
|
%
|
(dollars in thousands)
|
|
Three Months Ended
|
|||||||||||||||||||||||||||||||
|
|
June 30, 2017
|
|
March 31, 2017
|
|
June 30, 2016
|
|||||||||||||||||||||||||||
|
|
Average Balance
|
|
Interest /Dividends
|
|
Yield /Cost
|
|
Average Balance
|
|
Interest /Dividends
|
|
Yield /Cost
|
|
Average Balance
|
|
Interest /Dividends
|
|
Yield /Cost
|
|||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Loans, including
loans held-for-sale
|
|
$
|
1,570,235
|
|
|
$
|
16,416
|
|
|
4.19
|
%
|
|
$
|
1,338,694
|
|
|
$
|
14,156
|
|
|
4.29
|
%
|
|
$
|
1,110,282
|
|
|
$
|
11,661
|
|
|
4.22
|
%
|
Securities - taxable
|
|
405,380
|
|
|
2,566
|
|
|
2.54
|
%
|
|
381,522
|
|
|
2,367
|
|
|
2.52
|
%
|
|
307,336
|
|
|
1,747
|
|
|
2.29
|
%
|
||||||
Securities - non-taxable
|
|
95,436
|
|
|
696
|
|
|
2.93
|
%
|
|
93,323
|
|
|
697
|
|
|
3.03
|
%
|
|
51,162
|
|
|
368
|
|
|
2.89
|
%
|
||||||
Other earning assets
|
|
67,989
|
|
|
297
|
|
|
1.75
|
%
|
|
45,392
|
|
|
170
|
|
|
1.52
|
%
|
|
97,774
|
|
|
195
|
|
|
0.80
|
%
|
||||||
Total interest-earning assets
|
|
2,139,040
|
|
|
19,975
|
|
|
3.75
|
%
|
|
1,858,931
|
|
|
17,390
|
|
|
3.79
|
%
|
|
1,566,554
|
|
|
13,971
|
|
|
3.59
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Allowance for loan losses
|
|
(12,372
|
)
|
|
|
|
|
|
(11,299
|
)
|
|
|
|
|
|
(9,472
|
)
|
|
|
|
|
||||||||||||
Noninterest-earning assets
|
|
67,984
|
|
|
|
|
|
|
58,104
|
|
|
|
|
|
|
39,422
|
|
|
|
|
|
||||||||||||
Total assets
|
|
$
|
2,194,652
|
|
|
|
|
|
|
$
|
1,905,736
|
|
|
|
|
|
|
$
|
1,596,504
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing demand deposits
|
|
$
|
92,676
|
|
|
$
|
127
|
|
|
0.55
|
%
|
|
$
|
88,295
|
|
|
$
|
119
|
|
|
0.55
|
%
|
|
$
|
83,712
|
|
|
$
|
114
|
|
|
0.55
|
%
|
Regular savings accounts
|
|
34,545
|
|
|
67
|
|
|
0.78
|
%
|
|
28,333
|
|
|
47
|
|
|
0.67
|
%
|
|
28,023
|
|
|
40
|
|
|
0.57
|
%
|
||||||
Money market accounts
|
|
394,735
|
|
|
915
|
|
|
0.93
|
%
|
|
347,696
|
|
|
696
|
|
|
0.81
|
%
|
|
363,767
|
|
|
641
|
|
|
0.71
|
%
|
||||||
Certificates and brokered deposits
|
|
1,071,408
|
|
|
4,215
|
|
|
1.58
|
%
|
|
986,353
|
|
|
3,837
|
|
|
1.58
|
%
|
|
809,450
|
|
|
3,135
|
|
|
1.56
|
%
|
||||||
Total interest-bearing deposits
|
|
1,593,364
|
|
|
5,324
|
|
|
1.34
|
%
|
|
1,450,677
|
|
|
4,699
|
|
|
1.31
|
%
|
|
1,284,952
|
|
|
3,930
|
|
|
1.23
|
%
|
||||||
Other borrowed funds
|
|
398,044
|
|
|
1,677
|
|
|
1.69
|
%
|
|
262,573
|
|
|
1,234
|
|
|
1.91
|
%
|
|
161,127
|
|
|
735
|
|
|
1.83
|
%
|
||||||
Total interest-bearing liabilities
|
|
1,991,408
|
|
|
7,001
|
|
|
1.41
|
%
|
|
1,713,250
|
|
|
5,933
|
|
|
1.40
|
%
|
|
1,446,079
|
|
|
4,665
|
|
|
1.30
|
%
|
||||||
Noninterest-bearing deposits
|
|
32,897
|
|
|
|
|
|
|
31,463
|
|
|
|
|
|
|
27,687
|
|
|
|
|
|
||||||||||||
Other noninterest-bearing liabilities
|
|
9,119
|
|
|
|
|
|
|
6,225
|
|
|
|
|
|
|
4,825
|
|
|
|
|
|
||||||||||||
Total liabilities
|
|
2,033,424
|
|
|
|
|
|
|
1,750,938
|
|
|
|
|
|
|
1,478,591
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Shareholders’ equity
|
|
161,228
|
|
|
|
|
|
|
154,798
|
|
|
|
|
|
|
117,913
|
|
|
|
|
|
||||||||||||
Total liabilities and shareholders’ equity
|
|
$
|
2,194,652
|
|
|
|
|
|
|
$
|
1,905,736
|
|
|
|
|
|
|
$
|
1,596,504
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net interest income
|
|
|
|
$
|
12,974
|
|
|
|
|
|
|
$
|
11,457
|
|
|
|
|
|
|
$
|
9,306
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest rate spread
1
|
|
|
|
|
|
2.34
|
%
|
|
|
|
|
|
2.39
|
%
|
|
|
|
|
|
2.29
|
%
|
||||||||||||
Net interest margin
2
|
|
|
|
|
|
2.43
|
%
|
|
|
|
|
|
2.50
|
%
|
|
|
|
|
|
2.39
|
%
|
||||||||||||
Net interest margin - FTE
3
|
|
|
|
|
|
2.53
|
%
|
|
|
|
|
|
2.57
|
%
|
|
|
|
|
|
2.43
|
%
|
(dollars in thousands)
|
|
Six Months Ended
|
||||||||||||||||||||
|
|
June 30, 2017
|
|
June 30, 2016
|
||||||||||||||||||
|
|
Average Balance
|
|
Interest /Dividends
|
|
Yield /Cost
|
|
Average Balance
|
|
Interest /Dividends
|
|
Yield /Cost
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans, including loans held-for-sale
|
|
$
|
1,455,104
|
|
|
$
|
30,572
|
|
|
4.24
|
%
|
|
$
|
1,065,225
|
|
|
$
|
22,850
|
|
|
4.31
|
%
|
Securities - taxable
|
|
393,517
|
|
|
4,933
|
|
|
2.53
|
%
|
|
255,116
|
|
|
2,916
|
|
|
2.30
|
%
|
||||
Securities - non-taxable
|
|
94,385
|
|
|
1,393
|
|
|
2.98
|
%
|
|
36,671
|
|
|
533
|
|
|
2.92
|
%
|
||||
Other earning assets
|
|
56,753
|
|
|
467
|
|
|
1.66
|
%
|
|
88,033
|
|
|
365
|
|
|
0.83
|
%
|
||||
Total interest-earning assets
|
|
1,999,759
|
|
|
37,365
|
|
|
3.77
|
%
|
|
1,445,045
|
|
|
26,664
|
|
|
3.71
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses
|
|
(11,839
|
)
|
|
|
|
|
|
(9,063
|
)
|
|
|
|
|
||||||||
Noninterest-earning assets
|
|
63,072
|
|
|
|
|
|
|
38,686
|
|
|
|
|
|
||||||||
Total assets
|
|
$
|
2,050,992
|
|
|
|
|
|
|
$
|
1,474,668
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing demand deposits
|
|
$
|
90,498
|
|
|
$
|
246
|
|
|
0.55
|
%
|
|
$
|
82,525
|
|
|
$
|
225
|
|
|
0.55
|
%
|
Regular savings accounts
|
|
31,456
|
|
|
114
|
|
|
0.73
|
%
|
|
26,522
|
|
|
76
|
|
|
0.58
|
%
|
||||
Money market accounts
|
|
371,346
|
|
|
1,611
|
|
|
0.87
|
%
|
|
357,288
|
|
|
1,257
|
|
|
0.71
|
%
|
||||
Certificates and brokered deposits
|
|
1,029,115
|
|
|
8,052
|
|
|
1.58
|
%
|
|
692,713
|
|
|
5,260
|
|
|
1.53
|
%
|
||||
Total interest-bearing deposits
|
|
1,522,415
|
|
|
10,023
|
|
|
1.33
|
%
|
|
1,159,048
|
|
|
6,818
|
|
|
1.18
|
%
|
||||
Other borrowed funds
|
|
330,683
|
|
|
2,911
|
|
|
1.78
|
%
|
|
173,372
|
|
|
1,399
|
|
|
1.62
|
%
|
||||
Total interest-bearing liabilities
|
|
1,853,098
|
|
|
12,934
|
|
|
1.41
|
%
|
|
1,332,420
|
|
|
8,217
|
|
|
1.24
|
%
|
||||
Noninterest-bearing deposits
|
|
32,184
|
|
|
|
|
|
|
25,293
|
|
|
|
|
|
||||||||
Other noninterest-bearing liabilities
|
|
7,680
|
|
|
|
|
|
|
4,859
|
|
|
|
|
|
||||||||
Total liabilities
|
|
1,892,962
|
|
|
|
|
|
|
1,362,572
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Shareholders’ equity
|
|
158,030
|
|
|
|
|
|
|
112,096
|
|
|
|
|
|
||||||||
Total liabilities and shareholders’ equity
|
|
$
|
2,050,992
|
|
|
|
|
|
|
$
|
1,474,668
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income
|
|
|
|
$
|
24,431
|
|
|
|
|
|
|
$
|
18,447
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate spread
1
|
|
|
|
|
|
2.36
|
%
|
|
|
|
|
|
2.47
|
%
|
||||||||
Net interest margin
2
|
|
|
|
|
|
2.46
|
%
|
|
|
|
|
|
2.57
|
%
|
||||||||
Net interest margin - FTE
3
|
|
|
|
|
|
2.55
|
%
|
|
|
|
|
|
2.60
|
%
|
|
|
Rate/Volume Analysis of Net Interest Income
|
||||||||||||||||||||||||||||||||||
(dollars in thousands)
|
|
Three Months Ended June 30, 2017 vs. March 31, 2017 Due to Changes in
|
|
Three Months Ended June 30, 2017 vs. June 30, 2016 Due to Changes in
|
|
Six Months Ended June 30, 2017 vs. June 30, 2016 Due to Changes in
|
||||||||||||||||||||||||||||||
|
|
Volume
|
|
Rate
|
|
Net
|
|
Volume
|
|
Rate
|
|
Net
|
|
Volume
|
|
Rate
|
|
Net
|
||||||||||||||||||
Interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Loans, including loans held-for-sale
|
|
$
|
4,351
|
|
|
$
|
(2,091
|
)
|
|
$
|
2,260
|
|
|
$
|
5,330
|
|
|
$
|
(575
|
)
|
|
$
|
4,755
|
|
|
$
|
8,822
|
|
|
$
|
(1,100
|
)
|
|
$
|
7,722
|
|
Securities – taxable
|
|
177
|
|
|
22
|
|
|
199
|
|
|
610
|
|
|
209
|
|
|
819
|
|
|
1,703
|
|
|
314
|
|
|
2,017
|
|
|||||||||
Securities – non-taxable
|
|
75
|
|
|
(76
|
)
|
|
(1
|
)
|
|
323
|
|
|
5
|
|
|
328
|
|
|
849
|
|
|
11
|
|
|
860
|
|
|||||||||
Other earning assets
|
|
97
|
|
|
30
|
|
|
127
|
|
|
(358
|
)
|
|
460
|
|
|
102
|
|
|
(357
|
)
|
|
459
|
|
|
102
|
|
|||||||||
Total
|
|
4,700
|
|
|
(2,115
|
)
|
|
2,585
|
|
|
5,905
|
|
|
99
|
|
|
6,004
|
|
|
11,017
|
|
|
(316
|
)
|
|
10,701
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest-bearing deposits
|
|
507
|
|
|
118
|
|
|
625
|
|
|
1,016
|
|
|
378
|
|
|
1,394
|
|
|
2,280
|
|
|
925
|
|
|
3,205
|
|
|||||||||
Other borrowed funds
|
|
1,307
|
|
|
(864
|
)
|
|
443
|
|
|
1,325
|
|
|
(383
|
)
|
|
942
|
|
|
1,364
|
|
|
148
|
|
|
1,512
|
|
|||||||||
Total
|
|
1,814
|
|
|
(746
|
)
|
|
1,068
|
|
|
2,341
|
|
|
(5
|
)
|
|
2,336
|
|
|
3,644
|
|
|
1,073
|
|
|
4,717
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Increase (decrease) in net interest income
|
|
$
|
2,886
|
|
|
$
|
(1,369
|
)
|
|
$
|
1,517
|
|
|
$
|
3,564
|
|
|
$
|
104
|
|
|
$
|
3,668
|
|
|
$
|
7,373
|
|
|
$
|
(1,389
|
)
|
|
$
|
5,984
|
|
(dollars in thousands)
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||||||
|
June 30,
2017 |
|
March 31,
2017 |
|
December 31,
2016 |
|
September 30,
2016 |
|
June 30,
2016 |
|
June 30,
2017 |
|
June 30,
2016 |
||||||||||||||
Service charges and fees
|
$
|
220
|
|
|
$
|
211
|
|
|
$
|
196
|
|
|
$
|
207
|
|
|
$
|
215
|
|
|
$
|
431
|
|
|
$
|
415
|
|
Mortgage banking activities
|
2,155
|
|
|
1,616
|
|
|
2,407
|
|
|
4,442
|
|
|
3,295
|
|
|
3,771
|
|
|
5,549
|
|
|||||||
Gain on sale of securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
177
|
|
|
—
|
|
|
177
|
|
|||||||
Other
|
361
|
|
|
304
|
|
|
288
|
|
|
249
|
|
|
61
|
|
|
665
|
|
|
147
|
|
|||||||
Total noninterest income
|
$
|
2,736
|
|
|
$
|
2,131
|
|
|
$
|
2,891
|
|
|
$
|
4,898
|
|
|
$
|
3,748
|
|
|
$
|
4,867
|
|
|
$
|
6,288
|
|
(dollars in thousands)
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||||||
|
June 30,
2017 |
|
March 31,
2017 |
|
December 31,
2016 |
|
September 30,
2016 |
|
June 30,
2016 |
|
June 30,
2017 |
|
June 30,
2016 |
||||||||||||||
Salaries and employee benefits
|
$
|
5,193
|
|
|
$
|
5,073
|
|
|
$
|
4,610
|
|
|
$
|
4,550
|
|
|
$
|
4,329
|
|
|
$
|
10,266
|
|
|
$
|
8,227
|
|
Marketing, advertising and promotion
|
544
|
|
|
518
|
|
|
471
|
|
|
454
|
|
|
434
|
|
|
1,062
|
|
|
898
|
|
|||||||
Consulting and professional services
|
764
|
|
|
813
|
|
|
709
|
|
|
901
|
|
|
895
|
|
|
1,577
|
|
|
1,533
|
|
|||||||
Data processing
|
245
|
|
|
237
|
|
|
292
|
|
|
286
|
|
|
275
|
|
|
482
|
|
|
549
|
|
|||||||
Loan expenses
|
248
|
|
|
214
|
|
|
267
|
|
|
240
|
|
|
200
|
|
|
462
|
|
|
384
|
|
|||||||
Premises and equipment
|
1,025
|
|
|
953
|
|
|
955
|
|
|
983
|
|
|
963
|
|
|
1,978
|
|
|
1,761
|
|
|||||||
Deposit insurance premium
|
300
|
|
|
315
|
|
|
344
|
|
|
420
|
|
|
215
|
|
|
615
|
|
|
395
|
|
|||||||
Other
|
604
|
|
|
575
|
|
|
510
|
|
|
579
|
|
|
564
|
|
|
1,179
|
|
|
1,133
|
|
|||||||
Total noninterest expense
|
$
|
8,923
|
|
|
$
|
8,698
|
|
|
$
|
8,158
|
|
|
$
|
8,413
|
|
|
$
|
7,875
|
|
|
$
|
17,621
|
|
|
$
|
14,880
|
|
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance Sheet Data:
|
|
June 30,
2017 |
|
March 31,
2017 |
|
December 31,
2016 |
|
September 30,
2016 |
|
June 30,
2016 |
||||||||||
Total assets
|
|
$
|
2,381,271
|
|
|
$
|
2,052,803
|
|
|
$
|
1,854,335
|
|
|
$
|
1,824,196
|
|
|
$
|
1,702,468
|
|
Loans
|
|
1,698,421
|
|
|
1,433,190
|
|
|
1,250,789
|
|
|
1,198,932
|
|
|
1,111,622
|
|
|||||
Securities available-for-sale
|
|
489,775
|
|
|
470,065
|
|
|
456,700
|
|
|
470,978
|
|
|
433,806
|
|
|||||
Securities held-to-maturity
|
|
19,215
|
|
|
19,218
|
|
|
16,671
|
|
|
5,500
|
|
|
—
|
|
|||||
Loans held-for-sale
|
|
27,335
|
|
|
13,202
|
|
|
27,101
|
|
|
32,471
|
|
|
44,503
|
|
|||||
Noninterest-bearing deposits
|
|
36,636
|
|
|
34,427
|
|
|
31,166
|
|
|
32,938
|
|
|
28,066
|
|
|||||
Interest-bearing deposits
|
|
1,695,476
|
|
|
1,522,692
|
|
|
1,431,701
|
|
|
1,460,663
|
|
|
1,360,867
|
|
|||||
Total deposits
|
|
1,732,112
|
|
|
1,557,119
|
|
|
1,462,867
|
|
|
1,493,601
|
|
|
1,388,933
|
|
|||||
Total shareholders’ equity
|
|
163,830
|
|
|
157,491
|
|
|
153,942
|
|
|
137,154
|
|
|
135,679
|
|
(dollars in thousands)
|
June 30,
2017 |
|
March 31,
2017 |
|
December 31,
2016 |
|
September 30,
2016 |
|
June 30,
2016 |
|||||||||||||||||||||||||
Commercial loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial and industrial
|
$
|
110,379
|
|
|
6.5
|
%
|
|
$
|
97,487
|
|
|
6.8
|
%
|
|
$
|
102,437
|
|
|
8.2
|
%
|
|
$
|
107,250
|
|
|
8.9
|
%
|
|
$
|
111,130
|
|
|
10.0
|
%
|
Owner-occupied commercial real estate
|
66,952
|
|
|
4.0
|
%
|
|
62,887
|
|
|
4.4
|
%
|
|
57,668
|
|
|
4.6
|
%
|
|
45,540
|
|
|
3.8
|
%
|
|
46,543
|
|
|
4.2
|
%
|
|||||
Investor commercial real estate
|
10,062
|
|
|
0.6
|
%
|
|
8,510
|
|
|
0.6
|
%
|
|
13,181
|
|
|
1.1
|
%
|
|
12,752
|
|
|
1.1
|
%
|
|
12,976
|
|
|
1.2
|
%
|
|||||
Construction
|
45,931
|
|
|
2.7
|
%
|
|
49,618
|
|
|
3.5
|
%
|
|
53,291
|
|
|
4.3
|
%
|
|
56,391
|
|
|
4.7
|
%
|
|
53,368
|
|
|
4.8
|
%
|
|||||
Single tenant lease financing
|
747,790
|
|
|
44.0
|
%
|
|
665,382
|
|
|
46.4
|
%
|
|
606,568
|
|
|
48.5
|
%
|
|
571,972
|
|
|
47.6
|
%
|
|
500,937
|
|
|
45.1
|
%
|
|||||
Public finance
|
179,873
|
|
|
10.6
|
%
|
|
77,995
|
|
|
5.4
|
%
|
|
—
|
|
|
0.0
|
%
|
|
—
|
|
|
0.0
|
%
|
|
—
|
|
|
0.0
|
%
|
|||||
Total commercial loans
|
1,160,987
|
|
|
68.4
|
%
|
|
961,879
|
|
|
67.1
|
%
|
|
833,145
|
|
|
66.7
|
%
|
|
793,905
|
|
|
66.1
|
%
|
|
724,954
|
|
|
65.3
|
%
|
|||||
Consumer loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Residential mortgage
|
292,997
|
|
|
17.3
|
%
|
|
246,014
|
|
|
17.2
|
%
|
|
205,554
|
|
|
16.4
|
%
|
|
200,889
|
|
|
16.8
|
%
|
|
202,107
|
|
|
18.2
|
%
|
|||||
Home equity
|
33,312
|
|
|
2.0
|
%
|
|
34,925
|
|
|
2.4
|
%
|
|
35,036
|
|
|
2.8
|
%
|
|
37,849
|
|
|
3.2
|
%
|
|
38,981
|
|
|
3.5
|
%
|
|||||
Other consumer
|
208,602
|
|
|
12.2
|
%
|
|
188,191
|
|
|
13.1
|
%
|
|
173,449
|
|
|
13.8
|
%
|
|
163,158
|
|
|
13.6
|
%
|
|
141,756
|
|
|
12.7
|
%
|
|||||
Total consumer loans
|
534,911
|
|
|
31.5
|
%
|
|
469,130
|
|
|
32.7
|
%
|
|
414,039
|
|
|
33.0
|
%
|
|
401,896
|
|
|
33.6
|
%
|
|
382,844
|
|
|
34.4
|
%
|
|||||
Deferred loan origination costs and premiums and discounts on purchased loans
|
2,523
|
|
|
0.1
|
%
|
|
2,181
|
|
|
0.2
|
%
|
|
3,605
|
|
|
0.3
|
%
|
|
3,131
|
|
|
0.3
|
%
|
|
3,824
|
|
|
0.3
|
%
|
|||||
Total loans
|
1,698,421
|
|
|
100.0
|
%
|
|
1,433,190
|
|
|
100.0
|
%
|
|
1,250,789
|
|
|
100.0
|
%
|
|
1,198,932
|
|
|
100.0
|
%
|
|
1,111,622
|
|
|
100.0
|
%
|
|||||
Allowance for loan losses
|
(13,194
|
)
|
|
|
|
(11,894
|
)
|
|
|
|
(10,981
|
)
|
|
|
|
(10,561
|
)
|
|
|
|
(10,016
|
)
|
|
|
||||||||||
Net loans
|
$
|
1,685,227
|
|
|
|
|
$
|
1,421,296
|
|
|
|
|
$
|
1,239,808
|
|
|
|
|
$
|
1,188,371
|
|
|
|
|
$
|
1,101,606
|
|
|
|
(dollars in thousands)
|
June 30,
2017 |
|
March 31,
2017 |
|
December 31,
2016 |
|
September 30,
2016 |
|
June 30,
2016 |
||||||||||
Nonaccrual loans
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
1,850
|
|
|
$
|
2,147
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,716
|
|
Total commercial loans
|
1,850
|
|
|
2,147
|
|
|
—
|
|
|
—
|
|
|
4,716
|
|
|||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage
|
1,209
|
|
|
1,209
|
|
|
1,024
|
|
|
1,025
|
|
|
844
|
|
|||||
Other consumer
|
29
|
|
|
55
|
|
|
59
|
|
|
108
|
|
|
74
|
|
|||||
Total consumer loans
|
1,238
|
|
|
1,264
|
|
|
1,083
|
|
|
1,133
|
|
|
918
|
|
|||||
Total nonaccrual loans
|
3,088
|
|
|
3,411
|
|
|
1,083
|
|
|
1,133
|
|
|
5,634
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Past Due 90 days and accruing loans
|
|
|
|
|
|
|
|
|
|
||||||||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage
|
341
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other consumer
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|||||
Total consumer loans
|
350
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|||||
Total past due 90 days and accruing loans
|
350
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total nonperforming loans
|
3,438
|
|
|
3,411
|
|
|
1,083
|
|
|
1,133
|
|
|
5,639
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Other real estate owned
|
|
|
|
|
|
|
|
|
|
||||||||||
Investor commercial real estate
|
4,488
|
|
|
4,488
|
|
|
4,488
|
|
|
4,488
|
|
|
4,488
|
|
|||||
Residential mortgage
|
—
|
|
|
—
|
|
|
45
|
|
|
45
|
|
|
—
|
|
|||||
Total other real estate owned
|
4,488
|
|
|
4,488
|
|
|
4,533
|
|
|
4,533
|
|
|
4,488
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Other nonperforming assets
|
26
|
|
|
93
|
|
|
85
|
|
|
69
|
|
|
46
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total nonperforming assets
|
$
|
7,952
|
|
|
$
|
7,992
|
|
|
$
|
5,701
|
|
|
$
|
5,735
|
|
|
$
|
10,173
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total nonperforming loans to total loans
|
0.20
|
%
|
|
0.24
|
%
|
|
0.09
|
%
|
|
0.90
|
%
|
|
0.51
|
%
|
|||||
Total nonperforming assets to total assets
|
0.33
|
%
|
|
0.39
|
%
|
|
0.31
|
%
|
|
0.31
|
%
|
|
0.60
|
%
|
|||||
Allowance for loan losses to total loans
|
0.78
|
%
|
|
0.83
|
%
|
|
0.88
|
%
|
|
0.88
|
%
|
|
0.90
|
%
|
|||||
Allowance for loan losses to nonperforming loans
|
383.8
|
%
|
|
348.7
|
%
|
|
1,013.9
|
%
|
|
932.1
|
%
|
|
177.6
|
%
|
(dollars in thousands)
|
June 30,
2017 |
|
March 31,
2017 |
|
December 31,
2016 |
|
September 30,
2016 |
|
June 30,
2016 |
||||||||||
Troubled debt restructurings – nonaccrual
|
$
|
1,762
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
Troubled debt restructurings – performing
|
$
|
487
|
|
|
$
|
496
|
|
|
$
|
757
|
|
|
$
|
1,067
|
|
|
$
|
1,082
|
|
Total troubled debt restructurings
|
$
|
2,249
|
|
|
$
|
496
|
|
|
$
|
757
|
|
|
$
|
1,068
|
|
|
$
|
1,082
|
|
(dollars in thousands)
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||||||
|
June 30,
2017 |
|
March 31,
2017 |
|
December 31,
2016 |
|
September 30,
2016 |
|
June 30,
2016 |
|
June 30,
2017 |
|
June 30,
2016 |
||||||||||||||
Balance, beginning of period
|
$
|
11,894
|
|
|
$
|
10,981
|
|
|
$
|
10,561
|
|
|
$
|
10,016
|
|
|
$
|
9,220
|
|
|
$
|
10,981
|
|
|
$
|
8,351
|
|
Provision charged to expense
|
1,322
|
|
|
1,035
|
|
|
256
|
|
|
2,204
|
|
|
924
|
|
|
2,357
|
|
|
1,870
|
|
|||||||
Losses charged off
|
(170
|
)
|
|
(223
|
)
|
|
(71
|
)
|
|
(1,737
|
)
|
|
(232
|
)
|
|
(393
|
)
|
|
(381
|
)
|
|||||||
Recoveries
|
148
|
|
|
101
|
|
|
235
|
|
|
78
|
|
|
104
|
|
|
249
|
|
|
176
|
|
|||||||
Balance, end of period
|
$
|
13,194
|
|
|
$
|
11,894
|
|
|
$
|
10,981
|
|
|
$
|
10,561
|
|
|
$
|
10,016
|
|
|
$
|
13,194
|
|
|
$
|
10,016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net charge-offs (recoveries) to average loans
|
0.01
|
%
|
|
0.04
|
%
|
|
(0.05
|
)%
|
|
0.57
|
%
|
|
0.05
|
%
|
|
0.02
|
%
|
|
0.04
|
%
|
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
||||||||||
Amortized Cost
|
June 30,
2017 |
|
March 31,
2017 |
|
December 31,
2016 |
|
September 30,
2016 |
|
June 30,
2016 |
||||||||||
Securities available-for-sale
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Government-sponsored agencies
|
$
|
129,926
|
|
|
$
|
113,933
|
|
|
$
|
92,599
|
|
|
$
|
85,630
|
|
|
$
|
75,133
|
|
Municipal securities
|
97,508
|
|
|
97,578
|
|
|
97,647
|
|
|
96,665
|
|
|
78,594
|
|
|||||
Mortgage-backed securities
|
231,591
|
|
|
235,879
|
|
|
238,354
|
|
|
244,780
|
|
|
233,886
|
|
|||||
Asset-backed securities
|
9,946
|
|
|
9,873
|
|
|
19,470
|
|
|
19,464
|
|
|
19,457
|
|
|||||
Corporate securities
|
27,118
|
|
|
23,107
|
|
|
20,000
|
|
|
20,000
|
|
|
20,000
|
|
|||||
Other securities
|
3,000
|
|
|
3,000
|
|
|
3,000
|
|
|
3,000
|
|
|
3,000
|
|
|||||
Total available-for-sale
|
499,089
|
|
|
483,370
|
|
|
471,070
|
|
|
469,539
|
|
|
430,070
|
|
|||||
Securities held-to-maturity
|
|
|
|
|
|
|
|
|
|
||||||||||
Municipal securities
|
10,168
|
|
|
10,169
|
|
|
10,171
|
|
|
—
|
|
|
—
|
|
|||||
Corporate securities
|
9,047
|
|
|
9,049
|
|
|
6,500
|
|
|
5,500
|
|
|
—
|
|
|||||
Total held-to-maturity
|
19,215
|
|
|
19,218
|
|
|
16,671
|
|
|
5,500
|
|
|
—
|
|
|||||
Total securities
|
$
|
518,304
|
|
|
$
|
502,588
|
|
|
$
|
487,741
|
|
|
$
|
475,039
|
|
|
$
|
430,070
|
|
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
||||||||||
Approximate Fair Value
|
June 30,
2017 |
|
March 31,
2017 |
|
December 31,
2016 |
|
September 30,
2016 |
|
June 30,
2016 |
||||||||||
Securities available-for-sale
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Government-sponsored agencies
|
$
|
129,682
|
|
|
$
|
113,287
|
|
|
$
|
91,896
|
|
|
$
|
85,990
|
|
|
$
|
75,678
|
|
Municipal securities
|
95,071
|
|
|
92,428
|
|
|
91,886
|
|
|
97,501
|
|
|
80,798
|
|
|||||
Mortgage-backed securities
|
226,114
|
|
|
229,436
|
|
|
231,641
|
|
|
246,085
|
|
|
235,911
|
|
|||||
Asset-backed securities
|
10,000
|
|
|
10,000
|
|
|
19,534
|
|
|
19,496
|
|
|
19,332
|
|
|||||
Corporate securities
|
25,960
|
|
|
21,982
|
|
|
18,811
|
|
|
18,880
|
|
|
19,074
|
|
|||||
Other securities
|
2,948
|
|
|
2,932
|
|
|
2,932
|
|
|
3,026
|
|
|
3,013
|
|
|||||
Total available-for-sale
|
489,775
|
|
|
470,065
|
|
|
456,700
|
|
|
470,978
|
|
|
433,806
|
|
|||||
Securities held-to-maturity
|
|
|
|
|
|
|
|
|
|
||||||||||
Municipal securities
|
9,847
|
|
|
9,703
|
|
|
9,673
|
|
|
—
|
|
|
—
|
|
|||||
Corporate securities
|
9,157
|
|
|
9,101
|
|
|
6,524
|
|
|
5,578
|
|
|
—
|
|
|||||
Total held-to-maturity
|
19,004
|
|
|
18,804
|
|
|
16,197
|
|
|
5,578
|
|
|
—
|
|
|||||
Total securities
|
$
|
508,779
|
|
|
$
|
488,869
|
|
|
$
|
472,897
|
|
|
$
|
476,556
|
|
|
$
|
433,806
|
|
(dollars in thousands)
|
|
June 30,
2017 |
|
March 31,
2017 |
|
December 31,
2016 |
|
September 30,
2016 |
|
June 30,
2016 |
|||||||||||||||||||||||||
Noninterest-bearing deposits
|
|
$
|
36,636
|
|
|
2.1
|
%
|
|
$
|
34,427
|
|
|
2.2
|
%
|
|
$
|
31,166
|
|
|
2.1
|
%
|
|
$
|
32,938
|
|
|
2.2
|
%
|
|
$
|
28,066
|
|
|
2.0
|
%
|
Interest-bearing demand deposits
|
|
94,726
|
|
|
5.5
|
%
|
|
94,461
|
|
|
6.1
|
%
|
|
93,074
|
|
|
6.4
|
%
|
|
84,939
|
|
|
5.7
|
%
|
|
83,031
|
|
|
6.0
|
%
|
|||||
Regular savings accounts
|
|
35,764
|
|
|
2.1
|
%
|
|
31,291
|
|
|
2.0
|
%
|
|
27,955
|
|
|
1.9
|
%
|
|
27,661
|
|
|
1.8
|
%
|
|
28,900
|
|
|
2.1
|
%
|
|||||
Money market accounts
|
|
386,224
|
|
|
22.3
|
%
|
|
371,115
|
|
|
23.8
|
%
|
|
340,240
|
|
|
23.3
|
%
|
|
364,517
|
|
|
24.4
|
%
|
|
373,932
|
|
|
26.9
|
%
|
|||||
Certificates of deposits
|
|
1,176,230
|
|
|
67.9
|
%
|
|
1,023,294
|
|
|
65.7
|
%
|
|
964,819
|
|
|
65.9
|
%
|
|
970,684
|
|
|
65.0
|
%
|
|
862,150
|
|
|
62.1
|
%
|
|||||
Brokered deposits
|
|
2,532
|
|
|
0.1
|
%
|
|
2,531
|
|
|
0.2
|
%
|
|
5,613
|
|
|
0.4
|
%
|
|
12,862
|
|
|
0.9
|
%
|
|
12,854
|
|
|
0.9
|
%
|
|||||
Total deposits
|
|
$
|
1,732,112
|
|
|
100.0
|
%
|
|
$
|
1,557,119
|
|
|
100.0
|
%
|
|
$
|
1,462,867
|
|
|
100.0
|
%
|
|
$
|
1,493,601
|
|
|
100.0
|
%
|
|
$
|
1,388,933
|
|
|
100.0
|
%
|
|
Actual
|
|
Minimum Capital Required - Basel III Phase-In Schedule
|
|
Minimum Capital Required - Basel III Fully Phased-In
|
|
Minimum Required to be Considered Well Capitalized
|
||||||||||||||||||||
(dollars in thousands)
|
Capital Amount
|
|
Ratio
|
|
Capital Amount
|
|
Ratio
|
|
Capital Amount
|
|
Ratio
|
|
Capital Amount
|
|
Ratio
|
||||||||||||
As of June 30, 2017:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Common equity tier 1 capital to risk-weighted assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated
|
$
|
164,902
|
|
|
9.74
|
%
|
|
$
|
97,372
|
|
|
5.75
|
%
|
|
$
|
118,540
|
|
|
7.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Bank
|
183,101
|
|
|
10.84
|
%
|
|
97,160
|
|
|
5.75
|
%
|
|
118,282
|
|
|
7.00
|
%
|
|
$
|
109,834
|
|
|
6.50
|
%
|
|||
Tier 1 capital to risk-weighted assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated
|
164,902
|
|
|
9.74
|
%
|
|
122,773
|
|
|
7.25
|
%
|
|
143,941
|
|
|
8.50
|
%
|
|
N/A
|
|
|
N/A
|
|
||||
Bank
|
183,101
|
|
|
10.84
|
%
|
|
122,507
|
|
|
7.25
|
%
|
|
143,628
|
|
|
8.50
|
%
|
|
135,180
|
|
|
8.00
|
%
|
||||
Total capital to risk-weighted assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated
|
214,748
|
|
|
12.68
|
%
|
|
156,642
|
|
|
9.25
|
%
|
|
177,809
|
|
|
10.50
|
%
|
|
N/A
|
|
|
N/A
|
|
||||
Bank
|
196,295
|
|
|
11.62
|
%
|
|
156,302
|
|
|
9.25
|
%
|
|
177,423
|
|
|
10.50
|
%
|
|
168,975
|
|
|
10.00
|
%
|
||||
Leverage ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated
|
164,902
|
|
|
7.50
|
%
|
|
88,006
|
|
|
4.00
|
%
|
|
88,006
|
|
|
4.00
|
%
|
|
N/A
|
|
|
N/A
|
|
||||
Bank
|
183,101
|
|
|
8.34
|
%
|
|
87,859
|
|
|
4.00
|
%
|
|
87,859
|
|
|
4.00
|
%
|
|
109,824
|
|
|
5.00
|
%
|
|
Actual
|
|
Minimum Capital Required - Basel III Phase-In Schedule
|
|
Minimum Capital Required - Basel III Fully Phased-In
|
|
Minimum Required to be Considered Well Capitalized
|
||||||||||||||||||||
(dollars in thousands)
|
Capital Amount
|
|
Ratio
|
|
Capital Amount
|
|
Ratio
|
|
Capital Amount
|
|
Ratio
|
|
Capital Amount
|
|
Ratio
|
||||||||||||
As of December 31, 2016:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Common equity tier 1 capital to risk-weighted assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated
|
$
|
158,479
|
|
|
11.54
|
%
|
|
$
|
70,366
|
|
|
5.13
|
%
|
|
$
|
96,110
|
|
|
7.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Bank
|
162,617
|
|
|
11.88
|
%
|
|
70,145
|
|
|
5.13
|
%
|
|
95,807
|
|
|
7.00
|
%
|
|
$
|
88,964
|
|
|
6.50
|
%
|
|||
Tier 1 capital to risk-weighted assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated
|
158,479
|
|
|
11.54
|
%
|
|
90,961
|
|
|
6.63
|
%
|
|
116,705
|
|
|
8.50
|
%
|
|
N/A
|
|
|
N/A
|
|
||||
Bank
|
162,617
|
|
|
11.88
|
%
|
|
90,675
|
|
|
6.63
|
%
|
|
116,337
|
|
|
8.50
|
%
|
|
109,494
|
|
|
8.00
|
%
|
||||
Total capital to risk-weighted assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated
|
206,038
|
|
|
15.01
|
%
|
|
118,421
|
|
|
8.63
|
%
|
|
144,165
|
|
|
10.50
|
%
|
|
N/A
|
|
|
N/A
|
|
||||
Bank
|
173,598
|
|
|
12.68
|
%
|
|
118,048
|
|
|
8.63
|
%
|
|
143,711
|
|
|
10.50
|
%
|
|
136,868
|
|
|
10.00
|
%
|
||||
Leverage ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated
|
158,479
|
|
|
8.65
|
%
|
|
73,311
|
|
|
4.00
|
%
|
|
73,311
|
|
|
4.00
|
%
|
|
N/A
|
|
|
N/A
|
|
||||
Bank
|
162,617
|
|
|
8.89
|
%
|
|
73,186
|
|
|
4.00
|
%
|
|
73,186
|
|
|
4.00
|
%
|
|
91,483
|
|
|
5.00
|
%
|
(dollars in thousands, except share and per share data)
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||||||
June 30,
2017 |
|
March 31,
2017 |
|
December 31,
2016 |
|
September 30,
2016 |
|
June 30,
2016 |
|
June 30,
2017 |
|
June 30,
2016 |
|||||||||||||||
Total equity - GAAP
|
$
|
163,830
|
|
|
$
|
157,491
|
|
|
$
|
153,942
|
|
|
$
|
137,154
|
|
|
$
|
135,679
|
|
|
$
|
163,830
|
|
|
$
|
135,679
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Goodwill
|
(4,687
|
)
|
|
(4,687
|
)
|
|
(4,687
|
)
|
|
(4,687
|
)
|
|
(4,687
|
)
|
|
(4,687
|
)
|
|
(4,687
|
)
|
|||||||
Tangible common equity
|
$
|
159,143
|
|
|
$
|
152,804
|
|
|
$
|
149,255
|
|
|
$
|
132,467
|
|
|
$
|
130,992
|
|
|
$
|
159,143
|
|
|
$
|
130,992
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total assets - GAAP
|
$
|
2,381,271
|
|
|
$
|
2,052,803
|
|
|
$
|
1,854,335
|
|
|
$
|
1,824,196
|
|
|
$
|
1,702,468
|
|
|
$
|
2,381,271
|
|
|
$
|
1,702,468
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Goodwill
|
(4,687
|
)
|
|
(4,687
|
)
|
|
(4,687
|
)
|
|
(4,687
|
)
|
|
(4,687
|
)
|
|
(4,687
|
)
|
|
(4,687
|
)
|
|||||||
Tangible assets
|
$
|
2,376,584
|
|
|
$
|
2,048,116
|
|
|
$
|
1,849,648
|
|
|
$
|
1,819,509
|
|
|
$
|
1,697,781
|
|
|
$
|
2,376,584
|
|
|
$
|
1,697,781
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total common shares outstanding
|
6,513,577
|
|
|
6,497,662
|
|
|
6,478,050
|
|
|
5,533,050
|
|
|
5,533,050
|
|
|
6,513,577
|
|
|
5,533,050
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Book value per common share
|
$
|
25.15
|
|
|
$
|
24.24
|
|
|
$
|
23.76
|
|
|
$
|
24.79
|
|
|
$
|
24.52
|
|
|
$
|
25.15
|
|
|
$
|
24.52
|
|
Effect of goodwill
|
(0.72
|
)
|
|
(0.72
|
)
|
|
(0.72
|
)
|
|
(0.85
|
)
|
|
(0.85
|
)
|
|
(0.72
|
)
|
|
(0.85
|
)
|
|||||||
Tangible book value per common share
|
$
|
24.43
|
|
|
$
|
23.52
|
|
|
$
|
23.04
|
|
|
$
|
23.94
|
|
|
$
|
23.67
|
|
|
$
|
24.43
|
|
|
$
|
23.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total shareholders’ equity to assets ratio
|
6.88
|
%
|
|
7.67
|
%
|
|
8.30
|
%
|
|
7.52
|
%
|
|
7.97
|
%
|
|
6.88
|
%
|
|
7.97
|
%
|
|||||||
Effect of goodwill
|
(0.18
|
)%
|
|
(0.21
|
)%
|
|
(0.23
|
)%
|
|
(0.24
|
)%
|
|
(0.25
|
)%
|
|
(0.18
|
)%
|
|
(0.25
|
)%
|
|||||||
Tangible common equity to tangible assets ratio
|
6.70
|
%
|
|
7.46
|
%
|
|
8.07
|
%
|
|
7.28
|
%
|
|
7.72
|
%
|
|
6.70
|
%
|
|
7.72
|
%
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total average equity - GAAP
|
$
|
161,228
|
|
|
$
|
154,798
|
|
|
$
|
135,974
|
|
|
$
|
133,666
|
|
|
$
|
117,913
|
|
|
$
|
158,030
|
|
|
$
|
112,096
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Average goodwill
|
(4,687
|
)
|
|
(4,687
|
)
|
|
(4,687
|
)
|
|
(4,687
|
)
|
|
(4,687
|
)
|
|
(4,687
|
)
|
|
(4,687
|
)
|
|||||||
Average tangible common equity
|
$
|
156,541
|
|
|
$
|
150,111
|
|
|
$
|
131,287
|
|
|
$
|
128,979
|
|
|
$
|
113,226
|
|
|
$
|
153,343
|
|
|
$
|
107,409
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Return on average shareholders’ equity
|
9.95
|
%
|
|
7.42
|
%
|
|
10.85
|
%
|
|
9.08
|
%
|
|
9.67
|
%
|
|
8.72
|
%
|
|
9.45
|
%
|
|||||||
Effect of goodwill
|
0.30
|
%
|
|
0.23
|
%
|
|
0.39
|
%
|
|
0.33
|
%
|
|
0.40
|
%
|
|
0.27
|
%
|
|
0.41
|
%
|
|||||||
Return on average tangible common equity
|
10.25
|
%
|
|
7.65
|
%
|
|
11.24
|
%
|
|
9.41
|
%
|
|
10.07
|
%
|
|
8.99
|
%
|
|
9.86
|
%
|
(dollars in thousands, except share and per share data)
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||||||
June 30,
2017 |
|
March 31,
2017 |
|
December 31,
2016 |
|
September 30,
2016 |
|
June 30,
2016 |
|
June 30,
2017 |
|
June 30,
2016 |
|||||||||||||||
Net interest income
|
$
|
12,974
|
|
|
$
|
11,457
|
|
|
$
|
10,904
|
|
|
$
|
10,338
|
|
|
$
|
9,306
|
|
|
$
|
24,431
|
|
|
$
|
18,447
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fully-taxable equivalent adjustments
1
|
543
|
|
|
306
|
|
|
256
|
|
|
239
|
|
|
144
|
|
|
849
|
|
|
213
|
|
|||||||
Net interest income - FTE
|
$
|
13,517
|
|
|
$
|
11,763
|
|
|
$
|
11,160
|
|
|
$
|
10,577
|
|
|
$
|
9,450
|
|
|
$
|
25,280
|
|
|
$
|
18,660
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net interest margin
|
2.43
|
%
|
|
2.50
|
%
|
|
2.42
|
%
|
|
2.42
|
%
|
|
2.39
|
%
|
|
2.46
|
%
|
|
2.57
|
%
|
|||||||
Effect of fully-taxable equivalent adjustments
1
|
0.10
|
%
|
|
0.07
|
%
|
|
0.06
|
%
|
|
0.05
|
%
|
|
0.04
|
%
|
|
0.09
|
%
|
|
0.03
|
%
|
|||||||
Net interest margin - FTE
|
2.53
|
%
|
|
2.57
|
%
|
|
2.48
|
%
|
|
2.47
|
%
|
|
2.43
|
%
|
|
2.55
|
%
|
|
2.60
|
%
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
|
% Change from Base Case for Parallel Changes in Rates
|
|||||||
|
-100 Basis Points
1
|
|
+100 Basis Points
|
|
+200 Basis Points
|
|||
NII - next twelve months
|
1.50
|
%
|
|
0.02
|
%
|
|
0.00
|
%
|
EVE
|
6.50
|
%
|
|
(14.57
|
)%
|
|
(26.62
|
)%
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
ITEM 1A.
|
RISK FACTORS
|
ITEM 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
|
ITEM 3.
|
DEFAULTS UPON SENIOR SECURITIES
|
ITEM 4.
|
MINE SAFETY DISCLOSURES
|
ITEM 5.
|
OTHER INFORMATION
|
ITEM 6.
|
EXHIBITS
|
Exhibit No.
|
|
Description
|
3.1
|
|
Articles of Incorporation of First Internet Bancorp (incorporated by reference to Exhibit 3.1 to registration statement filed on Form 10 filed November 30, 2012)
|
3.2
|
|
Amended and Restated Bylaws of First Internet Bancorp as amended March 18, 2013 (incorporated by reference to Exhibit 3.2 to annual report on Form 10-K for the year ended December 31, 2012)
|
31.1
|
|
Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer
|
31.2
|
|
Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer
|
32.1
|
|
Section 1350 Certifications
|
101.INS
|
|
XBRL Instance Document
|
101.SCH
|
|
XBRL Taxonomy Extension Schema
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase
|
|
|
FIRST INTERNET BANCORP
|
|
|
|
Date: August 3, 2017
|
By
|
/s/ David B. Becker
|
|
|
David B. Becker,
Chairman, President and Chief Executive Officer
(on behalf of Registrant)
|
|
|
|
Date: August 3, 2017
|
By
|
/s/ Kenneth J. Lovik
|
|
|
Kenneth J. Lovik,
Executive Vice President and Chief Financial Officer (principal financial officer)
|
Exhibit No.
|
|
Description
|
|
Method of Filing
|
3.1
|
|
Articles of Incorporation of First Internet Bancorp
|
|
Incorporated by Reference
|
3.2
|
|
Amended and Restated Bylaws of First Internet Bancorp as amended March 18, 2013
|
|
Incorporated by Reference
|
31.1
|
|
Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer
|
|
Filed Electronically
|
31.2
|
|
Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer
|
|
Filed Electronically
|
32.1
|
|
Section 1350 Certifications
|
|
Filed Electronically
|
101.INS
|
|
XBRL Instance Document
|
|
Filed Electronically
|
101.SCH
|
|
XBRL Taxonomy Extension Schema
|
|
Filed Electronically
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase
|
|
Filed Electronically
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase
|
|
Filed Electronically
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase
|
|
Filed Electronically
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase
|
|
Filed Electronically
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of First Internet Bancorp;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer 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 reporting 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 registrant's board of directors (or persons performing the equivalent function):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date:
|
August 3, 2017
|
|
|
|
/s/ David B. Becker
|
|
|
David B. Becker, Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of First Internet Bancorp;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer 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 reporting 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 registrant's board of directors (or persons performing the equivalent function):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date:
|
August 3, 2017
|
|
|
|
/s/ Kenneth J. Lovik
|
|
|
Kenneth J. Lovik, Chief Financial Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ David B. Becker
|
|
David B. Becker
|
|
Chief Executive Officer
|
|
August 3, 2017
|
|
|
|
/s/ Kenneth J. Lovik
|
|
Kenneth J. Lovik
|
|
Chief Financial Officer
|
|
August 3, 2017
|
|