Texas
|
001-35854
|
13-4219346
|
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
Exhibit No.
|
Description of Exhibit
|
Exhibit 23.1
|
|
Exhibit 99.1
|
|
Exhibit 99.2
|
|
Exhibit 99.3
|
By:
|
/s/ David R. Brooks
|
Name:
|
David R. Brooks
|
Title:
|
Chairman of the Board, Chief Executive Officer and President
|
|
December 31,
|
|
December 31,
|
||||
|
2017
|
|
2016
|
||||
|
(In thousands, except share and per share data)
|
||||||
Assets
|
|
|
|
||||
Cash and due from banks
|
$
|
51,553
|
|
|
$
|
50,111
|
|
Time deposits with banks
|
254
|
|
|
254
|
|
||
Securities available for sale, at fair value
|
329,977
|
|
|
324,228
|
|
||
Securities held to maturity (fair value of $257,665 and $239,404
|
|
|
|
||||
at December 31, 2017 and December 31, 2016)
|
259,916
|
|
|
243,979
|
|
||
Bank stocks, at cost
|
24,419
|
|
|
22,649
|
|
||
Total investments
|
614,312
|
|
|
590,856
|
|
||
Loans held for sale
|
1,725
|
|
|
4,129
|
|
||
Loans, held for investment, net of deferred fees and costs
|
2,805,663
|
|
|
2,515,009
|
|
||
Less allowance for loan losses
|
(23,250)
|
|
|
(23,250)
|
|
||
Net loans, held for investment
|
2,782,413
|
|
|
2,491,759
|
|
||
Premises and equipment, net
|
65,874
|
|
|
67,390
|
|
||
Other real estate owned and foreclosed assets
|
761
|
|
|
569
|
|
||
Goodwill
|
65,106
|
|
|
56,404
|
|
||
Other intangible assets, net
|
14,441
|
|
|
15,317
|
|
||
Bank-owned life insurance
|
78,573
|
|
|
65,538
|
|
||
Other assets
|
23,878
|
|
|
24,100
|
|
||
Total assets
|
$
|
3,698,890
|
|
|
$
|
3,366,427
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
||||
Liabilities:
|
|
|
|
||||
Deposits:
|
|
|
|
||||
Noninterest-bearing demand
|
$
|
939,550
|
|
|
$
|
916,632
|
|
Interest-bearing demand and NOW
|
813,882
|
|
|
767,523
|
|
||
Money market
|
527,621
|
|
|
484,664
|
|
||
Savings
|
201,687
|
|
|
164,478
|
|
||
Time
|
458,887
|
|
|
365,787
|
|
||
Total deposits
|
2,941,627
|
|
|
2,699,084
|
|
||
Securities sold under agreement to repurchase
|
44,746
|
|
|
36,948
|
|
||
Federal Home Loan Bank line of credit borrowing
|
157,444
|
|
|
124,691
|
|
||
Federal Home Loan Bank term notes
|
70,000
|
|
|
72,477
|
|
||
Subordinated debentures, net
|
65,065
|
|
|
64,981
|
|
||
Interest payable and other liabilities
|
15,109
|
|
|
15,868
|
|
||
Total liabilities
|
3,293,991
|
|
|
3,014,049
|
|
||
Stockholders’ equity:
|
|
|
|
||||
Common stock
(1)
|
32
|
|
|
31
|
|
||
Additional paid-in capital - common stock
|
859,509
|
|
|
832,067
|
|
||
Accumulated deficit
|
(343,383)
|
|
|
(367,944)
|
|
||
Accumulated other comprehensive loss
|
(4,694)
|
|
|
(6,726)
|
|
||
Treasury stock, at cost, 2,421,208 and 2,361,882 shares, respectively
|
(106,565)
|
|
|
(105,050)
|
|
||
Total stockholders’ equity
|
404,899
|
|
|
352,378
|
|
||
Total liabilities and stockholders’ equity
|
$
|
3,698,890
|
|
|
$
|
3,366,427
|
|
(1)
|
Common stock—$0.001 par value; 40,000,000 shares authorized; 31,643,472 shares issued and 29,222,264 shares outstanding at December 31, 2017 (including 434,149 shares of unvested restricted stock); 40,000,000 shares authorized; 30,695,886 shares issued and 28,334,004 shares outstanding at December 31, 2016 (including 513,187 shares of unvested restricted stock).
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
(In thousands, except share and per share data)
|
||||||||||
Interest income:
|
|
|
|
|
|
||||||
Loans, including costs and fees
|
$
|
118,674
|
|
|
$
|
87,249
|
|
|
$
|
70,188
|
|
Investment securities:
|
|
|
|
|
|
||||||
Taxable
|
9,264
|
|
|
7,625
|
|
|
8,325
|
|
|||
Tax-exempt
|
4,933
|
|
|
3,683
|
|
|
2,852
|
|
|||
Dividends
|
1,290
|
|
|
1,063
|
|
|
959
|
|
|||
Federal funds sold and other
|
141
|
|
|
233
|
|
|
6
|
|
|||
Total interest income
|
134,302
|
|
|
99,853
|
|
|
82,330
|
|
|||
Interest expense:
|
|
|
|
|
|
||||||
Deposits
|
7,344
|
|
|
4,859
|
|
|
3,207
|
|
|||
Securities sold under agreement to repurchase
|
71
|
|
|
52
|
|
|
45
|
|
|||
Borrowings
|
2,648
|
|
|
2,549
|
|
|
1,285
|
|
|||
Subordinated debentures
|
3,440
|
|
|
2,005
|
|
|
814
|
|
|||
Total interest expense
|
13,503
|
|
|
9,465
|
|
|
5,351
|
|
|||
Net interest income
|
120,799
|
|
|
90,388
|
|
|
76,979
|
|
|||
Provision for loan losses
|
992
|
|
|
143
|
|
|
96
|
|
|||
Net interest income, after provision for loan losses
|
119,807
|
|
|
90,245
|
|
|
76,883
|
|
|||
Noninterest income:
|
|
|
|
|
|
||||||
Deposit service and other fees
|
13,951
|
|
|
10,447
|
|
|
8,941
|
|
|||
Investment management and trust
|
6,005
|
|
|
5,452
|
|
|
5,189
|
|
|||
Increase in cash surrender value of life insurance
|
2,559
|
|
|
2,005
|
|
|
1,758
|
|
|||
Gain (loss) on sale of securities
|
(6)
|
|
|
(73)
|
|
|
132
|
|
|||
Gain on sale of SBA loans
|
1,256
|
|
|
873
|
|
|
824
|
|
|||
Other
|
1,679
|
|
|
553
|
|
|
336
|
|
|||
Total noninterest income
|
25,444
|
|
|
19,257
|
|
|
17,180
|
|
|||
Noninterest expense:
|
|
|
|
|
|
||||||
Salaries and employee benefits
|
46,762
|
|
|
40,946
|
|
|
33,564
|
|
|||
Occupancy expense
|
6,664
|
|
|
5,887
|
|
|
6,312
|
|
|||
Furniture and equipment
|
3,898
|
|
|
3,070
|
|
|
3,007
|
|
|||
Amortization of intangible assets
|
2,745
|
|
|
1,557
|
|
|
1,981
|
|
|||
Other real estate owned, net
|
174
|
|
|
31
|
|
|
80
|
|
|||
Insurance and assessments
|
2,666
|
|
|
2,314
|
|
|
2,398
|
|
|||
Professional fees
|
4,129
|
|
|
3,639
|
|
|
3,220
|
|
|||
Impairment of long-lived assets
|
394
|
|
|
185
|
|
|
122
|
|
|||
Other general and administrative
|
19,363
|
|
|
15,158
|
|
|
9,655
|
|
|||
Total noninterest expense
|
86,795
|
|
|
72,787
|
|
|
60,339
|
|
|||
Income before income taxes
|
58,456
|
|
|
36,715
|
|
|
33,724
|
|
|||
Income tax expense
|
19,832
|
|
|
11,988
|
|
|
11,270
|
|
|||
Net income
|
$
|
38,624
|
|
|
$
|
24,727
|
|
|
$
|
22,454
|
|
|
|
|
|
|
|
||||||
Earnings per common share–basic:
|
$
|
1.38
|
|
|
$
|
1.06
|
|
|
$
|
1.07
|
|
Earnings per common share–diluted:
|
1.36
|
|
|
1.05
|
|
|
1.06
|
|
|||
Dividends declared per common share:
|
0.50
|
|
|
0.46
|
|
|
0.40
|
|
|||
|
|
|
|
|
|
||||||
Weighted average common shares outstanding-basic:
|
28,056,588
|
|
|
23,267,108
|
|
|
21,065,590
|
|
|||
Weighted average common shares outstanding-diluted:
|
28,343,687
|
|
|
23,559,947
|
|
|
21,272,336
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
(In thousands)
|
||||||||||
Net income
|
$
|
38,624
|
|
|
$
|
24,727
|
|
|
$
|
22,454
|
|
Change in net unrealized gains (losses) on available for sale
|
|
|
|
|
|
||||||
securities during the period excluding the change attributable to
|
|
|
|
|
|
||||||
available for sale securities reclassified to held to maturity
|
1,868
|
|
|
(4,304)
|
|
|
(1,971)
|
|
|||
Income tax effect
|
(710)
|
|
|
1,636
|
|
|
750
|
|
|||
Change in unamortized loss on available for sale securities
|
|
|
|
|
|
||||||
reclassified into held to maturity securities
|
486
|
|
|
504
|
|
|
427
|
|
|||
Income tax effect
|
(185)
|
|
|
(192)
|
|
|
(162)
|
|
|||
Reclassification adjustment for net losses (gains) included
|
|
|
|
|
|
||||||
in net income during the period
|
6
|
|
|
73
|
|
|
(132)
|
|
|||
Income tax effect
|
(2)
|
|
|
(28)
|
|
|
50
|
|
|||
Change in fair value of derivatives during the period
|
136
|
|
|
(296)
|
|
|
(1,250)
|
|
|||
Income tax effect
|
(52)
|
|
|
113
|
|
|
475
|
|
|||
Reclassification adjustment of losses on derivatives
|
|
|
|
|
|
||||||
during the period
|
783
|
|
|
925
|
|
|
218
|
|
|||
Income tax effect
|
(298)
|
|
|
(352)
|
|
|
(83)
|
|
|||
Other comprehensive income (loss)
|
2,032
|
|
|
(1,921)
|
|
|
(1,678)
|
|
|||
Total comprehensive income
|
$
|
40,656
|
|
|
$
|
22,806
|
|
|
$
|
20,776
|
|
|
Common Stock
Shares Outstanding |
|
Common Stock
and Additional Paid-in Capital |
|
Treasury
Stock |
|
Accumulated
Deficit |
|
Accumulated Other
Comprehensive Loss |
|
Totals
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance, January 1, 2015
|
21,628,873
|
|
$
|
709,365
|
|
|
$
|
(103,127
|
)
|
|
$
|
(396,172
|
)
|
|
$
|
(3,127
|
)
|
|
$
|
206,939
|
|
Net income
|
-
|
|
-
|
|
|
-
|
|
|
22,454
|
|
|
-
|
|
|
22,454
|
|
|||||
Other comprehensive loss
|
-
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(1,678)
|
|
|
(1,678)
|
|
|||||
Stock compensation awards, net of forfeitures
|
115,690
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|||||
Stock based compensation, net
|
-
|
|
2,739
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2,739
|
|
|||||
Tax effect of restricted stock vestings
|
-
|
|
230
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
230
|
|
|||||
Repurchase of common stock
|
(39,711)
|
|
-
|
|
|
(616)
|
|
|
-
|
|
|
-
|
|
|
(616)
|
|
|||||
Dividends paid ($0.40 paid per share)
|
-
|
|
-
|
|
|
-
|
|
|
(8,429)
|
|
|
-
|
|
|
(8,429)
|
|
|||||
Balance, December 31, 2015
|
21,704,852
|
|
$
|
712,334
|
|
|
$
|
(103,743
|
)
|
|
$
|
(382,147
|
)
|
|
$
|
(4,805
|
)
|
|
$
|
221,639
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
-
|
|
-
|
|
|
-
|
|
|
24,727
|
|
|
-
|
|
|
24,727
|
|
|||||
Other comprehensive loss
|
-
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(1,921)
|
|
|
(1,921)
|
|
|||||
Issuance of common stock for acquisition of Home
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
State Bancorp net of issuance costs
|
6,533,756
|
|
116,643
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
116,643
|
|
|||||
Stock compensation awards, net of forfeitures
|
169,534
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|||||
Stock based compensation, net
|
-
|
|
3,121
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,121
|
|
|||||
Repurchase of common stock
|
(74,138)
|
|
-
|
|
|
(1,307)
|
|
|
-
|
|
|
-
|
|
|
(1,307)
|
|
|||||
Dividends paid ($0.46 paid per share)
|
-
|
|
-
|
|
|
-
|
|
|
(10,524)
|
|
|
-
|
|
|
(10,524)
|
|
|||||
Balance, December 31, 2016
|
28,334,004
|
|
$
|
832,098
|
|
|
$
|
(105,050
|
)
|
|
$
|
(367,944
|
)
|
|
$
|
(6,726
|
)
|
|
$
|
352,378
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
-
|
|
-
|
|
|
-
|
|
|
38,624
|
|
|
-
|
|
|
38,624
|
|
|||||
Other comprehensive income
|
-
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2,032
|
|
|
2,032
|
|
|||||
Issuance of common stock for acquisition of Castle
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Rock Bank Holding Company
|
840,629
|
|
24,420
|
|
|
|
|
|
|
|
|
24,420
|
|
||||||||
Stock compensation awards, net of forfeitures
|
106,957
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|||||
Stock based compensation, net
|
-
|
|
3,023
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,023
|
|
|||||
Repurchase of common stock
|
(59,326)
|
|
-
|
|
|
(1,515)
|
|
|
-
|
|
|
-
|
|
|
(1,515)
|
|
|||||
Dividends paid ($0.50 paid per share)
|
-
|
|
-
|
|
|
-
|
|
|
(14,063)
|
|
|
-
|
|
|
(14,063)
|
|
|||||
Balance, December 31, 2017
|
29,222,264
|
|
$
|
859,541
|
|
|
$
|
(106,565
|
)
|
|
$
|
(343,383
|
)
|
|
$
|
(4,694
|
)
|
|
$
|
404,899
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
(In thousands)
|
||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
38,624
|
|
|
$
|
24,727
|
|
|
$
|
22,454
|
|
Reconciliation of net income to net cash from operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
5,716
|
|
|
4,270
|
|
|
4,728
|
|
|||
Net amortization (accretion) on investment and loan portfolios
|
(953)
|
|
|
872
|
|
|
530
|
|
|||
Provision for loan losses
|
992
|
|
|
143
|
|
|
96
|
|
|||
Impairment of long-lived assets
|
394
|
|
|
185
|
|
|
122
|
|
|||
Stock compensation, net
|
3,023
|
|
|
3,121
|
|
|
2,739
|
|
|||
Dividends on bank stocks
|
(434)
|
|
|
(521)
|
|
|
(504)
|
|
|||
Increase in cash surrender value of life insurance
|
(2,164)
|
|
|
(1,629)
|
|
|
(1,453)
|
|
|||
Net gain on sale of securities and SBA loans
|
(1,250)
|
|
|
(800)
|
|
|
(956)
|
|
|||
Landlord cash allowance
|
-
|
|
|
-
|
|
|
934
|
|
|||
Loss (gain) on the sale of other assets
|
(271)
|
|
|
345
|
|
|
18
|
|
|||
Origination of SBA loans with intent to sell
|
(8,455)
|
|
|
(12,990)
|
|
|
(6,538)
|
|
|||
Proceeds from the sale of SBA loans originated with intent to sell
|
13,795
|
|
|
10,587
|
|
|
8,038
|
|
|||
Loss, net, and valuation adjustments on real estate owned
|
160
|
|
|
105
|
|
|
42
|
|
|||
Net change in:
|
|
|
|
|
|
||||||
Interest receivable and other assets
|
1,035
|
|
|
(282)
|
|
|
(969)
|
|
|||
Net deferred income tax assets
|
1,723
|
|
|
(360)
|
|
|
4,105
|
|
|||
Interest payable and other liabilities
|
(91)
|
|
|
977
|
|
|
47
|
|
|||
Net cash from operating activities
|
51,844
|
|
|
28,750
|
|
|
33,433
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Activity in available for sale securities:
|
|
|
|
|
|
||||||
Sales, maturities, prepayments and calls
|
125,234
|
|
|
411,461
|
|
|
61,276
|
|
|||
Purchases
|
(91,934)
|
|
|
(152,650)
|
|
|
(22,561)
|
|
|||
Activity in held to maturity securities and bank stocks:
|
|
|
|
|
|
||||||
Maturities, prepayments and calls
|
25,443
|
|
|
29,599
|
|
|
19,047
|
|
|||
Purchases
|
(43,052)
|
|
|
(60,639)
|
|
|
(35,320)
|
|
|||
Loan originations, net of principal collections
|
(122,461)
|
|
|
(142,268)
|
|
|
(224,202)
|
|
|||
Loan purchases
|
(98,940)
|
|
|
(109,519)
|
|
|
(50,111)
|
|
|||
Redemption of time deposits with banks
|
-
|
|
|
250
|
|
|
-
|
|
|||
Purchase of bank-owned life insurance contracts
|
(7,500)
|
|
|
(15,000)
|
|
|
(5,000)
|
|
|||
Proceeds from sale of other assets
|
1,463
|
|
|
2,204
|
|
|
1,293
|
|
|||
Proceeds from sales of other real estate owned and foreclosed assets
|
514
|
|
|
45
|
|
|
1,427
|
|
|||
Proceeds from sale of SBA and other loans transferred to held for sale
|
3,939
|
|
|
229
|
|
|
589
|
|
|||
Additions to premises and equipment
|
(1,549)
|
|
|
(1,464)
|
|
|
(5,136)
|
|
|||
Cash paid in acquisition, net of cash received
|
21,717
|
|
|
(23,915)
|
|
|
(1,457)
|
|
|||
Net cash from investing activities
|
(187,126)
|
|
|
(61,667)
|
|
|
(260,155)
|
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Net change in deposits
|
114,160
|
|
|
127,561
|
|
|
116,521
|
|
|||
Repayment of Federal Home Loan Bank term notes
|
(2,409)
|
|
|
(50,026)
|
|
|
-
|
|
|||
Net change in borrowings on Federal Home Loan Bank line of credit
|
32,753
|
|
|
(63,208)
|
|
|
45,547
|
|
|||
Proceeds from Federal Home Loan Bank term notes
|
-
|
|
|
25,000
|
|
|
75,000
|
|
|||
Proceeds from issuance of subordinated debt, net of issuance costs
|
-
|
|
|
39,170
|
|
|
-
|
|
|||
Cash dividends on common stock
|
(14,063)
|
|
|
(10,524)
|
|
|
(8,429)
|
|
|||
Net change in repurchase agreements and federal funds purchased
|
7,798
|
|
|
(9,515)
|
|
|
(7,031)
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
(In thousands)
|
||||||||||
Repurchase of common stock
|
(1,515)
|
|
|
(1,307)
|
|
|
(616)
|
|
|||
Payment of stock issuance costs related to acquisition
|
-
|
|
|
(834)
|
|
|
-
|
|
|||
Net cash from financing activities
|
136,724
|
|
|
56,317
|
|
|
220,992
|
|
|||
Net change in cash and cash equivalents
|
1,442
|
|
|
23,400
|
|
|
(5,730)
|
|
|||
Cash and cash equivalents, beginning of period
|
50,111
|
|
|
26,711
|
|
|
32,441
|
|
|||
Cash and cash equivalents, end of period
|
$
|
51,553
|
|
|
$
|
50,111
|
|
|
$
|
26,711
|
|
|
|
|
|
|
|
||||||
Supplemental disclosure of cash flow activity:
|
|
|
|
|
|
||||||
Interest paid on deposits and borrowed funds
|
$
|
13,731
|
|
|
$
|
8,312
|
|
|
$
|
5,484
|
|
Income taxes paid
|
15,983
|
|
|
12,653
|
|
|
7,262
|
|
|||
Supplemental disclosure of noncash activities:
|
|
|
|
|
|
||||||
Common stock issued in acquisition
|
24,420
|
|
|
117,477
|
|
|
-
|
|
|||
Loans transferred to other real estate owned and foreclosed assets
|
113
|
|
|
-
|
|
|
-
|
|
|||
Real estate transferred to held for sale
|
4,278
|
|
|
-
|
|
|
-
|
|
|||
Reclassification of available for sale securities into held to maturity
|
-
|
|
|
63,432
|
|
|
49,084
|
|
|||
See Footnote 3 for breakout of acquisition purchase price
|
|
|
|
|
|
(1)
|
Organization
|
(2)
|
Summary of Significant Accounting Policies
|
(a)
|
Nature of Operations and Principles of Consolidation
|
(b)
|
Business Combinations
|
(c)
|
Use of Estimates
|
(d)
|
Cash Flows
|
(e)
|
Time Deposits with Banks
|
(f)
|
Securities
|
(g)
|
Loans and Loan Commitments
|
(h)
|
Allowance for Loan Losses and Allowance for Unfunded Commitments
|
(i)
|
Loans Held for Sale
|
(j)
|
Transfers of Financial Assets
|
(k)
|
Other Real Estate Owned and Foreclosed Assets
|
(l)
|
Premises and Equipment
|
(m)
|
Bank Stocks
|
(n)
|
Goodwill and Other Intangible Assets
|
(o)
|
Impairment of Long-Lived Assets
|
(p)
|
Derivative Instruments
|
(q)
|
Stock Incentive Plan
|
(r)
|
Stock Repurchase Plan
|
(s)
|
Bank-Owned Life Insurance
|
(t)
|
Income Taxes
|
(u)
|
Segments of an Enterprise and Related Information
|
(v)
|
Earnings per Common Share
|
|
Year Ended December 31,
|
||||
|
2017
|
|
2016
|
|
2015
|
Average common shares outstanding
|
28,056,588
|
|
23,267,108
|
|
21,065,590
|
Effect of dilutive unvested stock grants
(1)
|
287,099
|
|
292,839
|
|
206,746
|
Average shares outstanding for calculated
|
|
|
|
|
|
diluted earnings per common share
|
28,343,687
|
|
23,559,947
|
|
21,272,336
|
(w)
|
Dividend Restrictions
|
(x)
|
Fair Values of Financial Instruments
|
(y)
|
Loss Contingencies
|
(z)
|
Recently Issued Accounting Standards
|
(aa)
|
Reclassifications
|
(3)
|
Business Combinations
|
Assets acquired:
|
|
||
|
(In thousands)
|
||
Cash and cash equivalents
|
$
|
21,717
|
|
Securities available for sale
|
39,670
|
|
|
Bank stocks
|
705
|
|
|
Net Loans
|
71,052
|
|
|
Premises and equipment, net
|
4,184
|
|
|
Other real estate owned
|
761
|
|
|
Goodwill
|
8,702
|
|
|
Other intangible assets, net
|
1,870
|
|
|
Bank owned life insurance
|
3,371
|
|
|
Other assets
|
1,048
|
|
|
Total assets acquired
|
153,080
|
|
|
|
|
||
Liabilities assumed:
|
|
||
Deposits
|
128,450
|
|
|
Other liabilities
|
209
|
|
|
Total liabilities assumed
|
128,659
|
|
|
Net Assets Acquired
|
$
|
24,421
|
|
|
|
||
Assets acquired:
|
|
||
|
(In thousands)
|
||
Cash and cash equivalents
|
$
|
11,849
|
|
Time deposits with banks
|
504
|
|
|
Securities available for sale
|
396,450
|
|
|
Securities held to held maturity
|
850
|
|
|
Bank stocks
|
1,477
|
|
|
Net Loans
|
445,529
|
|
|
Premises and equipment, net
|
22,950
|
|
|
Other real estate owned
|
45
|
|
|
Goodwill
|
56,404
|
|
|
Other intangible assets, net
|
11,701
|
|
|
Other assets
|
8,118
|
|
|
Total assets acquired
|
955,877
|
|
|
|
|
||
Liabilities assumed:
|
|
||
Deposits
|
769,709
|
|
|
Securities sold under agreement to repurchase and federal funds purchased
|
19,985
|
|
|
Federal Home Loan Bank term notes
|
2,525
|
|
|
Federal Home Loan Bank line of credit borrowing
|
2,052
|
|
|
Other liabilities
|
9,128
|
|
|
Total liabilities assumed
|
803,399
|
|
|
Net Assets Acquired
|
$
|
152,478
|
|
|
October 27,
|
||
|
2017
|
||
|
(In thousands)
|
||
Commercial and residential real estate
|
$
|
51,531
|
|
Construction
|
6,337
|
|
|
Commercial
|
5,666
|
|
|
Agricultural
|
3,735
|
|
|
Consumer
|
3,783
|
|
|
Total gross loans
|
71,052
|
|
|
September 8,
|
||
|
2016
|
||
|
(In thousands)
|
||
Commercial and residential real estate
|
$
|
294,069
|
|
Construction
|
39,947
|
|
|
Commercial
|
45,996
|
|
|
Agricultural
|
7,906
|
|
|
Consumer
|
16,460
|
|
|
SBA
|
25,227
|
|
|
Other
|
15,924
|
|
|
Total gross loans
|
445,529
|
|
(4)
|
Securities
|
|
|
December 31, 2017
|
||||||||||||||
|
|
Fair
Value |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Amortized
Cost |
||||||||
|
|
(In thousands)
|
||||||||||||||
Securities available for sale:
|
|
|
|
|
|
|
|
|
||||||||
State and municipal
|
|
$
|
82,486
|
|
|
$
|
530
|
|
|
$
|
(1,224
|
)
|
|
$
|
83,180
|
|
Mortgage-backed - agency / residential
|
|
131,180
|
|
|
133
|
|
|
(3,069)
|
|
|
134,116
|
|
||||
Corporate
|
|
103,512
|
|
|
546
|
|
|
(1,320)
|
|
|
104,286
|
|
||||
Collateralized loan obligations
|
|
12,799
|
|
|
17
|
|
|
(51)
|
|
|
12,833
|
|
||||
Total securities available for sale
|
|
$
|
329,977
|
|
|
$
|
1,226
|
|
|
$
|
(5,664
|
)
|
|
$
|
334,415
|
|
|
|
December 31, 2016
|
||||||||||||||
|
|
Fair
Value |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Amortized
Cost |
||||||||
|
|
(In thousands)
|
||||||||||||||
Securities available for sale:
|
|
|
|
|
|
|
|
|
||||||||
State and municipal
|
|
$
|
81,608
|
|
|
$
|
91
|
|
|
$
|
(2,542
|
)
|
|
$
|
84,059
|
|
Mortgage-backed - agency / residential
|
|
129,832
|
|
|
347
|
|
|
(3,117)
|
|
|
132,602
|
|
||||
Mortgage-backed - private / residential
|
|
265
|
|
|
-
|
|
|
(6)
|
|
|
271
|
|
||||
Corporate
|
|
86,246
|
|
|
288
|
|
|
(1,357)
|
|
|
87,315
|
|
||||
Collateralized loan obligations
|
|
26,277
|
|
|
50
|
|
|
(66)
|
|
|
26,293
|
|
||||
Total securities available for sale
|
|
$
|
324,228
|
|
|
$
|
776
|
|
|
$
|
(7,088
|
)
|
|
$
|
330,540
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
Fair
Value |
|
Gross
Unrecognized Gains |
|
Gross
Unrecognized Losses |
|
Amortized
Cost |
|||||||||
|
|
(In thousands)
|
|||||||||||||||
December 31, 2017:
|
|
|
|
|
|
|
|
|
|||||||||
State and municipal
|
|
$
|
136,490
|
|
|
$
|
1,121
|
|
|
$
|
(1,530
|
)
|
|
$
|
136,899
|
|
|
Mortgage-backed - agency / residential
|
|
103,925
|
|
|
315
|
|
|
(2,088)
|
|
|
105,698
|
|
|||||
Asset-backed
|
|
16,050
|
|
|
7
|
|
|
(76)
|
|
|
16,119
|
|
|||||
Other
|
|
1,200
|
|
|
-
|
|
|
-
|
|
|
1,200
|
|
|||||
|
|
$
|
257,665
|
|
|
$
|
1,443
|
|
|
$
|
(3,694
|
)
|
|
$
|
259,916
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
December 31, 2016:
|
|
|
|
|
|
|
|
|
|||||||||
State and municipal
|
|
$
|
118,734
|
|
|
$
|
745
|
|
|
$
|
(3,120
|
)
|
|
$
|
121,109
|
|
|
Mortgage-backed - agency / residential
|
|
100,565
|
|
|
507
|
|
|
(2,590)
|
|
|
102,648
|
|
|||||
Asset-backed
|
|
18,905
|
|
|
9
|
|
|
(126)
|
|
|
19,022
|
|
|||||
Other
|
|
1,200
|
|
|
-
|
|
|
-
|
|
|
1,200
|
|
|||||
|
|
$
|
239,404
|
|
|
$
|
1,261
|
|
|
$
|
(5,836
|
)
|
|
$
|
243,979
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2017
|
|
2016
|
|
2015
|
||||||
|
(In thousands)
|
|||||||||||
Proceeds
|
|
$
|
80,027
|
|
|
$
|
370,111
|
|
|
$
|
27,985
|
|
Gross gains
|
|
334
|
|
|
2,486
|
|
|
217
|
|
|||
Gross losses
|
|
(340)
|
|
|
(2,608)
|
|
|
(85)
|
|
|||
Net tax (benefit) expense related to
|
|
|
|
|
|
|
||||||
gains (losses) on sale
|
|
(2)
|
|
|
(46)
|
|
|
50
|
|
|
|
Available for Sale
|
||
December 31, 2017
|
|
Fair Value
|
|
Amortized Cost
|
|
|
|
||
Securities available for sale:
|
|
|
|
|
Due in one year or less
|
|
6,058
|
|
6,041
|
Due after one year through five years
|
|
18,956
|
|
18,949
|
Due after five years through ten years
|
|
105,554
|
|
107,156
|
Due after ten years
|
|
55,430
|
|
55,320
|
Total AFS, excluding mortgage-backed (MBS)
|
|
|
|
|
and collateralized loan obligations
|
|
185,998
|
|
187,466
|
Mortgage-backed and collateralized
|
|
|
|
|
loan obligations
|
|
143,979
|
|
146,949
|
Total securities available for sale
|
|
329,977
|
|
334,415
|
|
|
Held to Maturity
|
||||||
December 31, 2017
|
|
Fair Value
|
|
Amortized Cost
|
||||
|
|
(In thousands)
|
||||||
Securities held to maturity:
|
|
|
|
|
||||
Due in one year or less
|
|
$
|
1,524
|
|
|
$
|
1,504
|
|
Due after one year through five years
|
|
15,672
|
|
|
15,699
|
|
||
Due after five years through ten years
|
|
74,774
|
|
|
75,282
|
|
||
Due after ten years
|
|
45,720
|
|
|
45,614
|
|
||
Total HTM, excluding MBS and asset-backed
|
|
137,690
|
|
|
138,099
|
|
||
Mortgage-backed and asset-backed
|
|
119,975
|
|
|
121,817
|
|
||
Total securities held to maturity
|
|
$
|
257,665
|
|
|
$
|
259,916
|
|
December 31, 2017
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
|
Fair
Value |
|
Unrealized
Losses |
|
Fair
Value |
|
Unrealized
Losses |
|
Fair
Value |
|
Unrealized
Losses |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Description of securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
State and municipal
|
$
|
8,710
|
|
|
$
|
(82
|
)
|
|
$
|
36,894
|
|
|
$
|
(1,142
|
)
|
|
$
|
45,604
|
|
|
$
|
(1,224
|
)
|
Mortgage-backed - agency /
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
residential
|
43,494
|
|
|
(315)
|
|
|
77,909
|
|
|
(2,754)
|
|
|
121,403
|
|
|
(3,069)
|
|
||||||
Corporate
|
38,267
|
|
|
(567)
|
|
|
23,731
|
|
|
(753)
|
|
|
61,998
|
|
|
(1,320)
|
|
||||||
Collateralized loan obligations
|
4,532
|
|
|
(13)
|
|
|
3,011
|
|
|
(38)
|
|
|
7,543
|
|
|
(51)
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
State and municipal
|
18,521
|
|
|
(167)
|
|
|
69,314
|
|
|
(2,057)
|
|
|
87,835
|
|
|
(2,224)
|
|
||||||
Mortgage-backed - agency /
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
residential
|
19,721
|
|
|
(162)
|
|
|
78,472
|
|
|
(2,685)
|
|
|
98,193
|
|
|
(2,847)
|
|
||||||
Asset-backed
|
-
|
|
|
-
|
|
|
16,051
|
|
|
(448)
|
|
|
16,051
|
|
|
(448)
|
|
||||||
Total temporarily impaired
|
$
|
133,245
|
|
|
$
|
(1,306
|
)
|
|
$
|
305,382
|
|
|
$
|
(9,877
|
)
|
|
$
|
438,627
|
|
|
$
|
(11,183
|
)
|
December 31, 2016
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
|
Fair
Value |
|
Unrealized
Losses |
|
Fair
Value |
|
Unrealized
Losses |
|
Fair
Value |
|
Unrealized
Losses |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Description of securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
State and municipal
|
$
|
47,434
|
|
|
$
|
(2,542
|
)
|
|
-
|
|
|
-
|
|
|
$
|
47,434
|
|
|
$
|
(2,542
|
)
|
||
Mortgage-backed - agency /
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
residential
|
93,909
|
|
|
(2,782)
|
|
|
9,526
|
|
|
(335)
|
|
|
103,435
|
|
|
(3,117)
|
|
||||||
Mortgage-backed - private /
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
residential
|
265
|
|
|
(6)
|
|
|
-
|
|
|
-
|
|
|
265
|
|
|
(6)
|
|
||||||
Corporate
|
49,964
|
|
|
(1,042)
|
|
|
5,685
|
|
|
(315)
|
|
|
55,649
|
|
|
(1,357)
|
|
||||||
Collateralized loan obligations
|
9,077
|
|
|
(17)
|
|
|
5,488
|
|
|
(49)
|
|
|
14,565
|
|
|
(66)
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
State and municipal
|
90,959
|
|
|
(3,804)
|
|
|
596
|
|
|
(259)
|
|
|
91,555
|
|
|
(4,063)
|
|
||||||
Mortgage-backed - agency /
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
residential
|
99,920
|
|
|
(3,442)
|
|
|
-
|
|
|
-
|
|
|
99,920
|
|
|
(3,442)
|
|
||||||
Asset-backed
|
15,690
|
|
|
(542)
|
|
|
3,216
|
|
|
(98)
|
|
|
18,906
|
|
|
(640)
|
|
||||||
Total temporarily impaired
|
$
|
407,218
|
|
|
$
|
(14,177
|
)
|
|
$
|
24,511
|
|
|
$
|
(1,056
|
)
|
|
$
|
431,729
|
|
|
$
|
(15,233
|
)
|
(5)
|
Bank Stocks
|
|
2017
|
|
2016
|
||||
|
|
|
|
||||
|
(In thousands)
|
||||||
Federal Reserve Bank of Kansas City
|
$
|
12,495
|
|
|
$
|
12,104
|
|
Federal Home Loan Bank of Topeka
|
10,235
|
|
|
8,895
|
|
||
Other bank stocks securities
|
1,689
|
|
|
1,650
|
|
||
Totals
|
$
|
24,419
|
|
|
$
|
22,649
|
|
(6)
|
Loans
|
|
December 31,
|
|
December 31,
|
||||
|
2017
|
|
2016
|
||||
|
|
|
|
||||
|
(In thousands)
|
||||||
Commercial and residential real estate
|
$
|
1,977,431
|
|
|
$
|
1,768,424
|
|
Construction
|
99,965
|
|
|
88,451
|
|
||
Commercial
|
523,355
|
|
|
461,666
|
|
||
Agricultural
|
16,995
|
|
|
16,690
|
|
||
Consumer
|
143,066
|
|
|
125,264
|
|
||
SBA
|
44,121
|
|
|
52,380
|
|
||
Other
|
866
|
|
|
2,195
|
|
||
Total gross loans
|
2,805,799
|
|
|
2,515,070
|
|
||
Deferred (fees) and costs
|
(136)
|
|
|
(61)
|
|
||
Loans, held for investment, net
|
2,805,663
|
|
|
2,515,009
|
|
||
Less allowance for loan losses
|
(23,250)
|
|
|
(23,250)
|
|
||
Net loans, held for investment
|
$
|
2,782,413
|
|
|
$
|
2,491,759
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
|
|
|
|
|
||||||
|
(In thousands)
|
||||||||||
Balance, beginning of period
|
$
|
23,250
|
|
|
$
|
23,000
|
|
|
$
|
22,490
|
|
Provision for loan losses
|
992
|
|
|
143
|
|
|
96
|
|
|||
Loans charged-off
|
(1,550)
|
|
|
(721)
|
|
|
(238)
|
|
|||
Recoveries on loans previously
|
|
|
|
|
|
||||||
charged-off
|
558
|
|
|
828
|
|
|
652
|
|
|||
Balance, end of period
|
$
|
23,250
|
|
|
$
|
23,250
|
|
|
$
|
23,000
|
|
|
Real Estate
|
|
Consumer and
Installment |
|
Commercial
and Other |
|
Total
|
||||||||
|
(In thousands)
|
||||||||||||||
Allowance for Loan Losses
|
|
|
|
|
|
|
|
||||||||
Balance as of January 1, 2015
|
$
|
19,607
|
|
|
$
|
39
|
|
|
$
|
2,844
|
|
|
$
|
22,490
|
|
Charge-offs
|
(21)
|
|
|
(12)
|
|
|
(205)
|
|
|
(238)
|
|
||||
Recoveries
|
284
|
|
|
29
|
|
|
339
|
|
|
652
|
|
||||
Provision (credit)
|
436
|
|
|
15
|
|
|
(355)
|
|
|
96
|
|
||||
Balance as of December 31, 2015
|
$
|
20,306
|
|
|
$
|
71
|
|
|
$
|
2,623
|
|
|
$
|
23,000
|
|
|
|
|
|
|
|
|
|
||||||||
Balance as of January 1, 2016
|
$
|
20,306
|
|
|
$
|
71
|
|
|
$
|
2,623
|
|
|
$
|
23,000
|
|
Charge-offs
|
(217)
|
|
|
(51)
|
|
|
(453)
|
|
|
(721)
|
|
||||
Recoveries
|
340
|
|
|
14
|
|
|
474
|
|
|
828
|
|
||||
Provision (credit)
|
(347)
|
|
|
71
|
|
|
419
|
|
|
143
|
|
||||
Balance as of December 31, 2016
|
$
|
20,082
|
|
|
$
|
105
|
|
|
$
|
3,063
|
|
|
$
|
23,250
|
|
|
|
|
|
|
|
|
|
||||||||
Balance as of January 1, 2017
|
$
|
20,082
|
|
|
$
|
105
|
|
|
$
|
3,063
|
|
|
$
|
23,250
|
|
Charge-offs
|
(386)
|
|
|
(106)
|
|
|
(1,058)
|
|
|
(1,550)
|
|
||||
Recoveries
|
132
|
|
|
91
|
|
|
335
|
|
|
558
|
|
||||
Provision (credit)
|
(1,283)
|
|
|
220
|
|
|
2,055
|
|
|
992
|
|
||||
Balance as of December 31, 2017
|
$
|
18,545
|
|
|
$
|
310
|
|
|
$
|
4,395
|
|
|
$
|
23,250
|
|
Balances at December 31, 2017:
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
||||||||
Allowance for Loan Losses
|
|
|
|
|
|
|
|
||||||||
Individually evaluated
|
$
|
1
|
|
|
-
|
|
|
$
|
1,121
|
|
|
$
|
1,122
|
|
|
Collectively evaluated
|
18,544
|
|
|
310
|
|
|
3,274
|
|
|
22,128
|
|
||||
Total
|
$
|
18,545
|
|
|
$
|
310
|
|
|
$
|
4,395
|
|
|
$
|
23,250
|
|
|
|
|
|
|
|
|
|
||||||||
Loans
|
|
|
|
|
|
|
|
||||||||
Individually evaluated
|
$
|
11,256
|
|
|
$
|
1
|
|
|
$
|
12,363
|
|
|
$
|
23,620
|
|
Collectively evaluated
|
2,225,944
|
|
|
74,675
|
|
|
481,424
|
|
|
2,782,043
|
|
||||
Total
|
$
|
2,237,200
|
|
|
$
|
74,676
|
|
|
$
|
493,787
|
|
|
$
|
2,805,663
|
|
Balances at December 31, 2016:
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
||||||||
Allowance for Loan Losses
|
|
|
|
|
|
|
|
||||||||
Individually evaluated
|
$
|
29
|
|
|
-
|
|
|
$
|
193
|
|
|
$
|
222
|
|
|
Collectively evaluated
|
20,053
|
|
|
105
|
|
|
2,870
|
|
|
23,028
|
|
||||
Total
|
$
|
20,082
|
|
|
$
|
105
|
|
|
$
|
3,063
|
|
|
$
|
23,250
|
|
|
|
|
|
|
|
|
|
||||||||
Loans
|
|
|
|
|
|
|
|
||||||||
Individually evaluated
|
$
|
22,728
|
|
|
$
|
2
|
|
|
$
|
7,645
|
|
|
$
|
30,375
|
|
Collectively evaluated
|
2,024,524
|
|
|
55,182
|
|
|
404,928
|
|
|
2,484,634
|
|
||||
Total
|
$
|
2,047,252
|
|
|
$
|
55,184
|
|
|
$
|
412,573
|
|
|
$
|
2,515,009
|
|
December 31, 2017
|
Recorded
Investment |
|
Unpaid
Balance |
|
Related
Allowance |
|
Average
Recorded Investment YTD |
|
Interest
Income Recognized YTD |
||||||||||
|
(In thousands)
|
||||||||||||||||||
Impaired loans with no related allowance:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and residential real estate
|
$
|
9,981
|
|
|
$
|
10,705
|
|
|
-
|
|
|
$
|
16,166
|
|
|
$
|
2,052
|
|
|
Construction
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|||||
Commercial
|
1,006
|
|
|
1,553
|
|
|
-
|
|
|
886
|
|
|
195
|
|
|||||
Consumer
|
367
|
|
|
425
|
|
|
-
|
|
|
88
|
|
|
-
|
|
|||||
Other
|
2,233
|
|
|
2,838
|
|
|
-
|
|
|
1,066
|
|
|
62
|
|
|||||
Total
|
$
|
13,587
|
|
|
$
|
15,521
|
|
|
-
|
|
|
$
|
18,206
|
|
|
$
|
2,309
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Impaired loans with a related allowance:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and residential real estate
|
$
|
46
|
|
|
$
|
157
|
|
|
$
|
1
|
|
|
$
|
779
|
|
|
-
|
|
|
Construction
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|||||
Commercial
|
9,807
|
|
|
9,899
|
|
|
1,120
|
|
|
5,262
|
|
|
447
|
|
|||||
Consumer
|
180
|
|
|
214
|
|
|
1
|
|
|
329
|
|
|
18
|
|
|||||
Other
|
-
|
|
|
-
|
|
|
-
|
|
|
635
|
|
|
6
|
|
|||||
Total
|
$
|
10,033
|
|
|
$
|
10,270
|
|
|
$
|
1,122
|
|
|
$
|
7,005
|
|
|
$
|
471
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total impaired loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and residential real estate
|
$
|
10,027
|
|
|
$
|
10,862
|
|
|
$
|
1
|
|
|
$
|
16,945
|
|
|
$
|
2,052
|
|
Construction
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|||||
Commercial
|
10,813
|
|
|
11,452
|
|
|
1,120
|
|
|
6,148
|
|
|
642
|
|
|||||
Consumer
|
547
|
|
|
639
|
|
|
1
|
|
|
417
|
|
|
18
|
|
|||||
Other
|
2,233
|
|
|
2,838
|
|
|
-
|
|
|
1,701
|
|
|
68
|
|
|||||
Total impaired loans
|
$
|
23,620
|
|
|
$
|
25,791
|
|
|
$
|
1,122
|
|
|
$
|
25,211
|
|
|
$
|
2,780
|
|
December 31, 2016
|
Recorded
Investment |
|
Unpaid
Balance |
|
Related
Allowance |
|
Average
Recorded Investment YTD |
|
Interest
Income Recognized YTD |
||||||||||
|
(In thousands)
|
||||||||||||||||||
Impaired loans with no related allowance:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and residential real estate
|
$
|
20,477
|
|
|
$
|
21,140
|
|
|
-
|
|
|
$
|
13,875
|
|
|
$
|
1,911
|
|
|
Construction
|
-
|
|
|
-
|
|
|
-
|
|
|
592
|
|
|
-
|
|
|||||
Commercial
|
222
|
|
|
229
|
|
|
-
|
|
|
243
|
|
|
16
|
|
|||||
Consumer
|
18
|
|
|
19
|
|
|
-
|
|
|
117
|
|
|
2
|
|
|||||
Other
|
817
|
|
|
1,625
|
|
|
-
|
|
|
493
|
|
|
-
|
|
|||||
Total
|
$
|
21,534
|
|
|
$
|
23,013
|
|
|
-
|
|
|
$
|
15,320
|
|
|
$
|
1,929
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Impaired loans with a related allowance:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and residential real estate
|
$
|
1,767
|
|
|
$
|
1,890
|
|
|
$
|
19
|
|
|
$
|
8,590
|
|
|
$
|
44
|
|
Construction
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|||||
Commercial
|
6,371
|
|
|
6,423
|
|
|
155
|
|
|
2,937
|
|
|
309
|
|
|||||
Consumer
|
306
|
|
|
383
|
|
|
9
|
|
|
389
|
|
|
9
|
|
|||||
Other
|
397
|
|
|
444
|
|
|
39
|
|
|
348
|
|
|
-
|
|
|||||
Total
|
$
|
8,841
|
|
|
$
|
9,140
|
|
|
$
|
222
|
|
|
$
|
12,264
|
|
|
$
|
362
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total impaired loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and residential real estate
|
$
|
22,244
|
|
|
$
|
23,030
|
|
|
$
|
19
|
|
|
$
|
22,465
|
|
|
$
|
1,955
|
|
Construction
|
-
|
|
|
-
|
|
|
-
|
|
|
592
|
|
|
-
|
|
|||||
Commercial
|
6,593
|
|
|
6,652
|
|
|
155
|
|
|
3,180
|
|
|
325
|
|
|||||
Consumer
|
324
|
|
|
402
|
|
|
9
|
|
|
506
|
|
|
11
|
|
|||||
Other
|
1,214
|
|
|
2,069
|
|
|
39
|
|
|
841
|
|
|
-
|
|
|||||
Total impaired loans
|
$
|
30,375
|
|
|
$
|
32,153
|
|
|
$
|
222
|
|
|
$
|
27,584
|
|
|
$
|
2,291
|
|
December 31, 2017
|
|
30-89
Days Past Due |
|
90 Days +
Past Due and Still Accruing |
|
Nonaccrual
|
|
Total Nonaccrual and
Past Due |
|
Total Loans,
Held for Investment |
||||||||
|
|
(In thousands)
|
||||||||||||||||
Commercial and residential
|
|
|
|
|
|
|
|
|
|
|
||||||||
real estate
|
|
$
|
410
|
|
|
-
|
|
$
|
1,750
|
|
|
$
|
2,160
|
|
|
$
|
1,977,335
|
|
Construction
|
|
-
|
|
|
-
|
|
-
|
|
|
-
|
|
|
99,960
|
|
||||
Commercial
|
|
1,663
|
|
|
-
|
|
2,079
|
|
|
3,742
|
|
|
523,330
|
|
||||
Consumer
|
|
469
|
|
|
-
|
|
444
|
|
|
913
|
|
|
143,059
|
|
||||
Other
|
|
327
|
|
|
-
|
|
1,281
|
|
|
1,608
|
|
|
61,979
|
|
||||
Total
|
|
$
|
2,869
|
|
|
-
|
|
$
|
5,554
|
|
|
$
|
8,423
|
|
|
$
|
2,805,663
|
|
December 31, 2016
|
|
30-89
Days Past Due |
|
90 Days +
Past Due and Still Accruing |
|
Nonaccrual
|
|
Total Nonaccrual and
Past Due |
|
Total Loans,
Held for Investment |
||||||||
|
|
(In thousands)
|
||||||||||||||||
Commercial and residential
|
|
|
|
|
|
|
|
|
|
|
||||||||
real estate
|
|
$
|
1,258
|
|
|
-
|
|
$
|
2,835
|
|
|
$
|
4,093
|
|
|
$
|
1,768,381
|
|
Construction
|
|
-
|
|
|
-
|
|
-
|
|
|
-
|
|
|
88,449
|
|
||||
Commercial
|
|
37
|
|
|
-
|
|
1,094
|
|
|
1,131
|
|
|
461,655
|
|
||||
Consumer
|
|
42
|
|
|
-
|
|
201
|
|
|
243
|
|
|
125,261
|
|
||||
Other
|
|
-
|
|
|
-
|
|
1,117
|
|
|
1,117
|
|
|
71,263
|
|
||||
Total
|
|
$
|
1,337
|
|
|
-
|
|
$
|
5,247
|
|
|
$
|
6,584
|
|
|
$
|
2,515,009
|
|
December 31, 2017
|
|
Commercial
& Residential Real Estate |
|
Construction
|
|
Commercial
|
|
Consumer
|
|
Other
|
|
Total
|
||||||||||||
|
|
(In thousands)
|
||||||||||||||||||||||
Non-classified
|
|
$
|
1,964,934
|
|
|
$
|
99,965
|
|
|
$
|
513,563
|
|
|
$
|
142,512
|
|
|
$
|
57,256
|
|
|
$
|
2,778,230
|
|
Substandard
|
|
12,497
|
|
|
-
|
|
|
9,792
|
|
|
554
|
|
|
4,726
|
|
|
27,569
|
|
||||||
Doubtful
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
||||||
Subtotal
|
|
1,977,431
|
|
|
99,965
|
|
|
523,355
|
|
|
143,066
|
|
|
61,982
|
|
|
2,805,799
|
|
||||||
Deferred fees and costs
|
|
(96)
|
|
|
(5)
|
|
|
(25)
|
|
|
(7)
|
|
|
(3)
|
|
|
(136)
|
|
||||||
Loans, held for investment, net
|
|
$
|
1,977,335
|
|
|
$
|
99,960
|
|
|
$
|
523,330
|
|
|
$
|
143,059
|
|
|
$
|
61,979
|
|
|
$
|
2,805,663
|
|
December 31, 2016
|
|
Commercial
& Residential Real Estate |
|
Construction
|
|
Commercial
|
|
Consumer
|
|
Other
|
|
Total
|
||||||||||||
|
|
(In thousands)
|
||||||||||||||||||||||
Non-classified
|
|
$
|
1,742,974
|
|
|
$
|
88,451
|
|
|
$
|
456,861
|
|
|
$
|
124,932
|
|
|
$
|
68,978
|
|
|
$
|
2,482,196
|
|
Substandard
|
|
25,450
|
|
|
-
|
|
|
4,805
|
|
|
332
|
|
|
2,287
|
|
|
32,874
|
|
||||||
Doubtful
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
||||||
Subtotal
|
|
1,768,424
|
|
|
88,451
|
|
|
461,666
|
|
|
125,264
|
|
|
71,265
|
|
|
2,515,070
|
|
||||||
Deferred fees and costs
|
|
(43)
|
|
|
(2)
|
|
|
(11)
|
|
|
(3)
|
|
|
(2)
|
|
|
(61)
|
|
||||||
Loans, held for investment, net
|
|
$
|
1,768,381
|
|
|
$
|
88,449
|
|
|
$
|
461,655
|
|
|
$
|
125,261
|
|
|
$
|
71,263
|
|
|
$
|
2,515,009
|
|
Year Ended December 31, 2017:
|
|
|
|
|
|||||
Troubled Debt Restructurings
|
Number of
Loans |
|
Pre-Modification
Outstanding Recorded Investment |
|
Post-Modification
Outstanding Recorded Investment |
||||
|
|
|
|
|
|
||||
|
|
|
(In thousands)
|
||||||
Commercial and residential
|
|
|
|
|
|
||||
real estate
|
12
|
|
$
|
2,935
|
|
|
$
|
2,935
|
|
Construction
|
-
|
|
-
|
|
|
-
|
|
||
Commercial
|
15
|
|
7,991
|
|
|
7,991
|
|
||
Consumer
|
1
|
|
51
|
|
|
51
|
|
||
Other
|
5
|
|
1,085
|
|
|
1,085
|
|
||
Total
|
33
|
|
$
|
12,062
|
|
|
$
|
12,062
|
|
Year Ended December 31, 2016:
|
|
|
|
|
|||||
Troubled Debt Restructurings
|
Number of
Loans |
|
Pre-Modification
Outstanding Recorded Investment |
|
Post-Modification
Outstanding Recorded Investment |
||||
|
|
|
|
|
|
||||
|
|
|
(In thousands)
|
||||||
Commercial and residential
|
|
|
|
|
|
||||
real estate
|
2
|
|
$
|
1,018
|
|
|
$
|
1,018
|
|
Construction
|
-
|
|
-
|
|
|
-
|
|
||
Commercial
|
16
|
|
6,650
|
|
|
6,650
|
|
||
Consumer
|
-
|
|
-
|
|
|
-
|
|
||
Other
|
1
|
|
97
|
|
|
97
|
|
||
Total
|
19
|
|
$
|
7,765
|
|
|
$
|
7,765
|
|
(7)
|
Premises and Equipment
|
|
2017
|
|
2016
|
||||
|
|
|
|
||||
|
(In thousands)
|
||||||
Land
|
$
|
15,354
|
|
|
$
|
16,826
|
|
Buildings
|
59,060
|
|
|
58,637
|
|
||
Leasehold improvements
|
3,790
|
|
|
3,691
|
|
||
Equipment and Software
|
17,506
|
|
|
16,553
|
|
||
Leasehold interest in land
|
684
|
|
|
684
|
|
||
Subtotal
|
$
|
96,394
|
|
|
$
|
96,391
|
|
Accumulated depreciation and amortization
|
(30,520)
|
|
|
(29,001)
|
|
||
Total premises and equipment
|
$
|
65,874
|
|
|
$
|
67,390
|
|
2018
|
$
|
1,721
|
|
2019
|
1,698
|
|
|
2020
|
1,724
|
|
|
2021
|
1,664
|
|
|
2022
|
1,316
|
|
|
Thereafter
|
3,407
|
|
|
|
$
|
11,530
|
|
(8)
|
Goodwill and Other Intangible Assets
|
|
|
|
December 31,
|
||||||
|
Useful Life
|
|
2017
|
|
2016
|
||||
|
|
|
|
|
|
||||
|
|
|
(In thousands)
|
||||||
Core deposit intangible assets
|
10 - 15 years
|
|
$
|
75,956
|
|
|
$
|
74,087
|
|
Core deposit intangible assets accumulated amortization
|
|
|
(65,272)
|
|
|
(63,112)
|
|
||
Core deposit intangible assets, net
|
|
|
$
|
10,684
|
|
|
$
|
10,975
|
|
|
|
|
|
|
|
||||
Customer relationship intangible assets
|
10 years
|
|
6,243
|
|
|
6,243
|
|
||
Customer relationship intangible assets accumulated amortization
|
|
|
(2,486)
|
|
|
(1,901)
|
|
||
Customer relationship intangible assets, net
|
|
|
$
|
3,757
|
|
|
$
|
4,342
|
|
|
|
|
|
|
|
||||
Total other intangible assets, net
|
|
|
$
|
14,441
|
|
|
$
|
15,317
|
|
(9)
|
Deposits
|
2018
|
$
|
339,410
|
|
2019
|
81,482
|
|
|
2020
|
21,279
|
|
|
2021
|
8,983
|
|
|
2022
|
7,733
|
|
|
|
$
|
458,887
|
|
(10)
|
Securities Sold Under Agreements to Repurchase
|
|
2017
|
|
2016
|
||||
|
|
|
|
||||
|
(Dollars in thousands)
|
||||||
Ending Balance
|
$
|
44,746
|
|
|
$
|
36,948
|
|
Weighted-average interest rate at year-end
|
0.20
|
%
|
|
0.19
|
%
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
|
|
|
|
|
||||||
|
(Dollars in thousands)
|
||||||||||
Average daily balance during the year
|
$
|
37,332
|
|
|
$
|
25,221
|
|
|
$
|
24,531
|
|
Average interest rate during the year
|
0.19
|
%
|
|
0.21
|
%
|
|
0.18
|
%
|
|||
Maximum month-end balance during the year
|
$
|
48,391
|
|
|
$
|
38,089
|
|
|
$
|
31,977
|
|
(11)
|
Borrowings
|
|
Principal
|
Interest Rate
|
Maturity
Date |
Total
Committed |
||||
|
(Dollars in thousands)
|
|||||||
December 31, 2017
|
|
|
|
|
||||
Short-term borrowings:
|
|
|
|
|
||||
FHLB line of credit
|
$
|
157,444
|
|
1.47%
|
overnight
|
$
|
706,251
|
|
Total short-term borrowings
|
$
|
157,444
|
|
|
|
|
||
|
|
|
|
|
||||
Long-term borrowings:
|
|
|
|
|
||||
FHLB term notes (fixed rate)
|
20,000
|
|
2.52%
|
January 23, 2018
|
See below
|
|
||
FHLB term notes (variable rate)
|
25,000
|
|
1.48%
|
March 7, 2018
|
See below
|
|
||
FHLB term notes (variable rate)
|
25,000
|
|
1.45%
|
August 3, 2018
|
See below
|
|
||
Total long-term borrowings
|
$
|
70,000
|
|
|
|
|
||
|
|
|
|
|
||||
Total borrowings
|
$
|
227,444
|
|
|
|
|
||
|
|
|
|
|
||||
December 31, 2016
|
|
|
|
|
||||
Short-term borrowings:
|
|
|
|
|
||||
FHLB line of credit
|
$
|
124,691
|
|
0.72%
|
overnight
|
$
|
597,202
|
|
Total short-term borrowings
|
$
|
124,691
|
|
|
|
|
||
|
|
|
|
|
||||
Long-term borrowings:
|
|
|
|
|
||||
FHLB term notes (fixed rate)
|
22,477
|
|
Range: 2.52% - 6.38%
|
2017 - 2018
|
See below
|
|
||
FHLB term notes (variable rate)
|
25,000
|
|
1.15%
|
March 7, 2017
|
See below
|
|
||
FHLB term notes (variable rate)
|
25,000
|
|
0.96%
|
August 4, 2017
|
See below
|
|
||
Total long-term borrowings
|
$
|
72,477
|
|
|
|
|
||
|
|
|
|
|
||||
Total borrowings
|
$
|
197,168
|
|
|
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
|
|
|
|
|
||||||
|
(Dollars in thousands)
|
||||||||||
Average daily balance during the year
|
$
|
73,042
|
|
|
$
|
81,539
|
|
|
$
|
130,152
|
|
Average interest rate during the year
|
0.99
|
%
|
|
0.55
|
%
|
|
0.28
|
%
|
|||
Maximum month-end balance during the year
|
$
|
157,444
|
|
|
$
|
185,700
|
|
|
$
|
212,065
|
|
(12)
|
Income Taxes
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
|
|
|
|
|
||||||
|
(In thousands)
|
||||||||||
Current tax expense:
|
|
|
|
|
|
||||||
Federal
|
$
|
15,894
|
|
|
$
|
11,921
|
|
|
$
|
7,165
|
|
State
|
2,215
|
|
|
427
|
|
|
-
|
|
|||
Total current tax expense
|
18,109
|
|
|
12,348
|
|
|
7,165
|
|
|||
Deferred tax expense
|
|
|
|
|
|
||||||
Federal
|
626
|
|
|
(1,026)
|
|
|
3,132
|
|
|||
Re-measurement of net deferred tax asset
|
976
|
|
|
-
|
|
|
-
|
|
|||
State
|
121
|
|
|
666
|
|
|
973
|
|
|||
Total deferred tax expense (benefit)
|
1,723
|
|
|
(360)
|
|
|
4,105
|
|
|||
|
|
|
|
|
|
||||||
Total tax expense
|
$
|
19,832
|
|
|
$
|
11,988
|
|
|
$
|
11,270
|
|
|
Year Ended December 31,
|
|||||||
|
2017
|
|
2016
|
|
2015
|
|||
|
|
|
|
|
|
|||
Tax expense at statutory federal rate
|
35.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
State tax, net of federal benefit
|
2.7
|
%
|
|
2.7
|
%
|
|
2.8
|
%
|
Tax exempt income
|
(4.8
|
)%
|
|
(5.1
|
)%
|
|
(4.4
|
)%
|
Re-measurement of net deferred tax asset
|
1.7
|
%
|
|
—
|
%
|
|
—
|
%
|
related to 2017 Tax Cuts and Jobs Act
|
|
|
|
|
|
|||
Other
|
0.7
|
%
|
|
0.1
|
%
|
|
—
|
%
|
Effective tax rate
|
33.9
|
%
|
|
32.7
|
%
|
|
33.4
|
%
|
|
2017
|
|
2016
|
||||
|
|
|
|
||||
|
(In thousands)
|
||||||
Deferred tax assets:
|
|
|
|
||||
Allowance for loan losses
|
$
|
5,733
|
|
|
$
|
8,837
|
|
Other real estate owned
|
61
|
|
|
93
|
|
||
Other assets and accruals
|
1,061
|
|
|
1,522
|
|
||
Unrealized loss on available for sale securities
|
1,094
|
|
|
2,399
|
|
||
Unrealized loss on securities transferred to held to maturity
|
548
|
|
|
1,029
|
|
||
Unrealized loss on cash flow hedges
|
225
|
|
|
696
|
|
||
Intangible assets
|
515
|
|
|
848
|
|
||
Fair value adjustments on loans and other assets
|
3,313
|
|
|
5,816
|
|
||
Stock compensation and other
|
910
|
|
|
1,281
|
|
||
Total deferred tax assets:
|
13,460
|
|
|
22,521
|
|
||
|
|
|
|
||||
Deferred tax liabilities:
|
|
|
|
||||
Premises and equipment
|
5,211
|
|
|
8,321
|
|
||
Unrealized gain on acquired securities
|
1,141
|
|
|
1,726
|
|
||
Core deposit intangibles
|
2,774
|
|
|
4,394
|
|
||
Deferred loan costs
|
1,301
|
|
|
1,724
|
|
||
FHLB stock, prepaid assets, equity
|
|
|
|
||||
investments and other liabilities
|
1,231
|
|
|
1,510
|
|
||
Total deferred tax liabilities
|
11,658
|
|
|
17,675
|
|
||
Deferred tax asset, net
|
$
|
1,802
|
|
|
$
|
4,846
|
|
(13)
|
Subordinated Debentures and Trust Preferred Securities
|
|
Date Issued
|
Amount
|
Maturity Date
|
Call
Date * |
Fixed or
Variable |
Rate
Adjuster |
Current
Rate |
Next Rate
Reset Date** |
|
|
|
|
|
|
|
|
|
|
|
CenBank Trust III
|
4/8/2004
|
15,464
|
4/15/2034
|
4/15/2018
|
Variable
|
LIBOR + 2.65%
|
4.01
|
%
|
4/15/2018
|
Guaranty Capital Trust III
|
6/30/2003
|
10,310
|
7/7/2033
|
4/7/2018
|
Variable
|
LIBOR + 3.10%
|
4.46
|
%
|
4/7/2018
|
Subordinated Note
|
7/18/2016
|
40,000
|
7/20/2026
|
N/A
|
Fixed
|
LIBOR + 4.73%
|
5.75
|
%
|
7/20/2021
|
(14)
|
Commitments
|
|
2017
|
|
2016
|
||||
|
|
|
|
||||
|
(In thousands)
|
||||||
Commitments to extend credit:
|
|
|
|
||||
Variable
|
$
|
508,186
|
|
|
$
|
436,546
|
|
Fixed
|
116,026
|
|
|
95,607
|
|
||
Total commitments to extend credit
|
$
|
624,212
|
|
|
$
|
532,153
|
|
|
|
|
|
||||
Standby letters of credit
|
$
|
12,398
|
|
|
$
|
10,292
|
|
(15)
|
Legal Contingencies
|
(16)
|
Employee Benefit Plans
|
|
Shares
|
|
Weighted Average Fair
Value on Award Date |
||
Unearned at January 1, 2017
|
513,187
|
|
$
|
14.39
|
|
Awarded
|
116,030
|
|
24.95
|
|
|
Forfeited
|
(9,073)
|
|
19.51
|
|
|
Vested
|
(185,995)
|
|
14.52
|
|
|
Unearned at December 31, 2017
|
434,149
|
|
$
|
17.05
|
|
(17)
|
Related-Party Transactions
|
(18)
|
Fair Value Measurements and Fair Value of Financial Instruments
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
|
Significant
Other Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
|
Balance
|
||||||||
|
(In thousands)
|
||||||||||||||
Assets/(Liabilities) at December 31, 2017
|
|
|
|
|
|
|
|
||||||||
State and municipal securities
|
$
|
—
|
|
|
$
|
75,162
|
|
|
$
|
7,324
|
|
|
$
|
82,486
|
|
Mortgage-backed securities – agency /
|
|
|
|
|
|
|
|
||||||||
residential
|
—
|
|
|
131,180
|
|
|
-
|
|
|
131,180
|
|
||||
Corporate securities
|
—
|
|
|
103,512
|
|
|
-
|
|
|
103,512
|
|
||||
Collateralized loan obligations
|
—
|
|
|
12,799
|
|
|
|
|
12,799
|
|
|||||
Interest rate swaps - cash flow hedge
|
—
|
|
|
(1,010)
|
|
|
-
|
|
|
(1,010)
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Assets/(Liabilities) at December 31, 2016
|
|
|
|
|
|
|
|
||||||||
State and municipal securities
|
$
|
—
|
|
|
$
|
49,856
|
|
|
$
|
31,752
|
|
|
$
|
81,608
|
|
Mortgage-backed securities – agency /
|
|
|
|
|
|
|
|
||||||||
residential
|
—
|
|
|
129,832
|
|
|
-
|
|
|
129,832
|
|
||||
Mortgage-backed securities – private /
|
|
|
|
|
|
|
|
||||||||
residential
|
—
|
|
|
265
|
|
|
-
|
|
|
265
|
|
||||
Corporate securities
|
—
|
|
|
86,246
|
|
|
-
|
|
|
86,246
|
|
||||
Collateralized loan obligations
|
—
|
|
|
26,277
|
|
|
|
|
26,277
|
|
|||||
Interest rate swaps - cash flow hedge
|
—
|
|
|
(1,929)
|
|
|
-
|
|
|
(1,929)
|
|
|
State and Municipal
Securities |
||
|
(In thousands)
|
||
Beginning balance December 31, 2016
|
$
|
31,752
|
|
Total unrealized gains (losses) included in:
|
|
||
Net income
|
(233)
|
|
|
Other comprehensive income (loss)
|
-
|
|
|
Sales, calls and prepayments
|
(24,195)
|
|
|
Transfers in and (out) of Level 3
|
-
|
|
|
Balance December 31, 2017
|
$
|
7,324
|
|
|
State and Municipal
Securities |
||
|
(In thousands)
|
||
Beginning balance January 1, 2016
|
$
|
32,040
|
|
Total unrealized gains (losses) included in:
|
|
||
Net income
|
6
|
|
|
Other comprehensive income (loss)
|
-
|
|
|
Sales, calls and prepayments
|
(425)
|
|
|
Acquisition of Level 3 security
|
131
|
|
|
Transfers in and (out) of Level 3
|
-
|
|
|
Balance December 31, 2016
|
$
|
31,752
|
|
December 31, 2017
|
Fair Value
|
Valuation Technique
|
Unobservable Inputs
|
Range
|
||
|
(In thousands)
|
|||||
State and municipal securities
|
$
|
7,324
|
|
discounted cash flow
|
discount rate
|
2.50%-3.00%
|
Total
|
$
|
7,324
|
|
|
|
|
|
|
|
|
|
||
December 31, 2016
|
Fair Value
|
Valuation Technique
|
Unobservable Inputs
|
Range
|
||
|
(In thousands)
|
|||||
State and municipal securities
|
$
|
31,752
|
|
discounted cash flow
|
discount rate
|
2.29%-4.75%
|
Total
|
$
|
31,752
|
|
|
|
|
|
|
|
|
Fair Value Measurements at December 31, 2017:
|
||||||||||||||||
|
|
Carrying Amount
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||
|
|
(In thousands)
|
||||||||||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
51,553
|
|
|
$
|
51,553
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
51,553
|
|
|
Time deposits with banks
|
|
254
|
|
|
254
|
|
|
—
|
|
|
—
|
|
|
254
|
|
|||||
Securities available for sale
|
|
329,977
|
|
|
—
|
|
|
322,653
|
|
|
7,324
|
|
|
329,977
|
|
|||||
Securities held to maturity
|
|
259,916
|
|
|
—
|
|
|
255,189
|
|
|
2,476
|
|
|
257,665
|
|
|||||
Bank stocks
|
|
24,419
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|||||
Loans held for sale
|
|
1,725
|
|
|
1,898
|
|
|
—
|
|
|
—
|
|
|
1,898
|
|
|||||
Loans held for investment, net
|
|
2,782,413
|
|
|
—
|
|
|
—
|
|
|
2,771,262
|
|
|
2,771,262
|
|
|||||
Accrued interest receivable
|
|
11,441
|
|
|
—
|
|
|
11,441
|
|
|
—
|
|
|
11,441
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
|
$
|
2,941,627
|
|
|
—
|
|
|
$
|
2,937,584
|
|
|
$
|
—
|
|
|
$
|
2,937,584
|
|
|
Securities sold under
|
|
|
|
|
|
|
|
|
|
|
||||||||||
agreements to repurchase
|
|
44,746
|
|
|
—
|
|
|
44,746
|
|
|
—
|
|
|
44,746
|
|
|||||
Short-term borrowings
|
|
157,444
|
|
|
—
|
|
|
157,444
|
|
|
—
|
|
|
157,444
|
|
|||||
Subordinated debentures
|
|
65,065
|
|
|
—
|
|
|
—
|
|
|
61,129
|
|
|
61,129
|
|
|||||
Long-term borrowings
|
|
70,000
|
|
|
—
|
|
|
70,141
|
|
|
—
|
|
|
70,141
|
|
|||||
Accrued interest payable
|
|
1,930
|
|
|
—
|
|
|
1,930
|
|
|
—
|
|
|
1,930
|
|
|||||
Interest rate swap - cash flow hedge
|
|
1,010
|
|
|
—
|
|
|
1,010
|
|
|
—
|
|
|
1,010
|
|
(a)
|
Cash and Cash Equivalents
|
(b)
|
Securities and Bank Stocks
|
(c)
|
Loans Held for Investment
|
(d)
|
Loans Held for Sale
|
(e)
|
Deposits
|
(f)
|
Short-term Borrowings
|
(g)
|
Long-term Borrowings
|
(h)
|
Subordinated Debentures
|
(i)
|
Accrued Interest Receivable/Payable
|
(j)
|
Interest Rate Swaps, net
|
(k)
|
Off-balance Sheet Instruments
|
(19)
|
Derivatives and Hedging Activities
|
|
Balance
|
|
|
||||||
|
Sheet
|
|
Fair Value December 31,
|
||||||
|
Location
|
|
2017
|
|
2016
|
||||
|
|
|
|
|
|
||||
|
|
|
(In thousands)
|
||||||
Derivatives designated as hedging instruments
|
|
|
|
|
|
||||
Assets:
|
|
|
|
|
|
||||
Interest rate swaps
|
Other assets
|
|
-
|
|
|
-
|
|
||
Liabilities:
|
|
|
|
|
|
||||
Interest rate swaps
|
Other liabilities
|
|
$
|
1,010
|
|
|
$
|
1,929
|
|
|
2017
|
|
2016
|
||||
|
|
|
|
||||
|
(Dollars in thousands)
|
||||||
Notional amounts
|
$
|
50,000
|
|
|
$
|
50,000
|
|
Weighted average pay rates
|
2.73
|
%
|
|
2.73
|
%
|
||
Weighted average receive rates
|
3 month LIBOR
|
|
|
3 month LIBOR
|
|
||
Weighted average maturity
|
2.9 years
|
|
|
3.9 years
|
|
||
Unrealized gains (losses)
|
$
|
(1,010
|
)
|
|
$
|
(1,929
|
)
|
|
Income
|
|
|
||||||
Interest Rate Swaps with
|
Statement
|
|
December 31,
|
||||||
Hedge Designation
|
Location
|
|
2017
|
|
2016
|
||||
|
|
|
|
|
|
||||
|
|
|
(In thousands)
|
||||||
Gain or (loss) recognized in OCI on
|
|
|
|
|
|
||||
derivative - net of tax
|
Not applicable
|
|
$
|
84
|
|
|
$
|
(183
|
)
|
(Gain) or loss reclassified from
|
|
|
|
|
|
||||
accumulated OCI into income
|
|
|
|
|
|
||||
(effective portion) - net of tax
|
Interest expense
|
|
$
|
485
|
|
|
$
|
573
|
|
(20)
|
Accumulated Other Comprehensive Income
|
|
Unrealized
Gains and Losses on Available for Sale Securities |
|
Unrealized
Gains and Losses on Held to Maturity Securities |
|
Unrealized
Gains and Losses on Cash Flow Hedges |
|
Total
|
||||||||
|
(In thousands)
|
||||||||||||||
Balance, January 1, 2015
|
$
|
(965
|
)
|
|
$
|
(1,277
|
)
|
|
$
|
(885
|
)
|
|
$
|
(3,127
|
)
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
||||||||
before reclassifications, net of tax
|
(1,221)
|
|
|
—
|
|
|
(775)
|
|
|
(1,996)
|
|
||||
Net unrealized losses on securities transferred
|
|
|
|
|
|
|
|
||||||||
from available for sale, to held to maturity
|
|
|
|
|
|
|
|
||||||||
net of tax
|
465
|
|
|
(465)
|
|
|
—
|
|
|
—
|
|
||||
Amounts reclassified from accumulated
|
|
|
|
|
|
|
|
||||||||
other comprehensive income (loss), net of tax
|
(82)
|
|
|
265
|
|
|
135
|
|
|
318
|
|
||||
Net other comprehensive income (loss)
|
(838)
|
|
|
(200)
|
|
|
(640)
|
|
|
(1,678)
|
|
||||
Balance, December 31, 2015
|
$
|
(1,803
|
)
|
|
$
|
(1,477
|
)
|
|
$
|
(1,525
|
)
|
|
$
|
(4,805
|
)
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
||||||||
before reclassifications, net of tax
|
$
|
(2,668
|
)
|
|
$
|
—
|
|
|
$
|
(183
|
)
|
|
$
|
(2,851
|
)
|
Net unrealized losses on securities transferred
|
|
|
|
|
|
|
|
||||||||
from available for sale, to held to maturity
|
|
|
|
|
|
|
|
||||||||
net of tax
|
513
|
|
|
(513)
|
|
|
—
|
|
|
—
|
|
||||
Amounts reclassified from accumulated
|
|
|
|
|
|
|
|
||||||||
other comprehensive income (loss), net of tax
|
45
|
|
|
312
|
|
|
573
|
|
|
930
|
|
||||
Net other comprehensive income (loss)
|
(2,110)
|
|
|
(201)
|
|
|
390
|
|
|
(1,921)
|
|
||||
Balance, December 31, 2016
|
$
|
(3,913
|
)
|
|
$
|
(1,678
|
)
|
|
$
|
(1,135
|
)
|
|
$
|
(6,726
|
)
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
||||||||
before reclassifications, net of tax
|
1,158
|
|
|
—
|
|
|
84
|
|
|
1,242
|
|
||||
Net unrealized losses on securities transferred
|
|
|
|
|
|
|
|
||||||||
from available for sale, to held to maturity
|
|
|
|
|
|
|
|
||||||||
net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Amounts reclassified from accumulated
|
|
|
|
|
|
|
|
||||||||
other comprehensive income (loss), net of tax
|
4
|
|
|
301
|
|
|
485
|
|
|
790
|
|
||||
Net other comprehensive income (loss)
|
1,162
|
|
|
301
|
|
|
569
|
|
|
2,032
|
|
||||
Balance, December 31, 2017
|
$
|
(2,751
|
)
|
|
$
|
(1,377
|
)
|
|
$
|
(566
|
)
|
|
$
|
(4,694
|
)
|
Details about
|
|
|
|
|
|
|
Affected Income Statement
|
||||||
AOCI Components
|
Amount Reclassified from AOCI
|
|
Line Item
|
||||||||||
|
Year Ended December 31,
|
|
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
|
|
||||||
|
(In thousands)
|
|
|
||||||||||
Unrealized gains and losses on
|
|
|
|
|
|
|
|
||||||
available for sale securities
|
$
|
6
|
|
|
$
|
73
|
|
|
$
|
(132
|
)
|
|
(Gain) loss on the sale of securities
|
|
(2)
|
|
|
(28)
|
|
|
50
|
|
|
Income tax effect
|
|||
|
$
|
4
|
|
|
$
|
45
|
|
|
$
|
(82
|
)
|
|
Net income
|
Unrealized gains and losses on
|
|
|
|
|
|
|
|
||||||
held to maturity securities
|
$
|
486
|
|
|
$
|
504
|
|
|
$
|
427
|
|
|
Interest income
|
|
(185)
|
|
|
(192)
|
|
|
(162)
|
|
|
Income tax effect
|
|||
|
$
|
301
|
|
|
$
|
312
|
|
|
$
|
265
|
|
|
Net income
|
Unrealized gains and losses on
|
|
|
|
|
|
|
|
||||||
cash flow hedges
|
$
|
783
|
|
|
$
|
925
|
|
|
$
|
218
|
|
|
Interest expense
|
|
(298)
|
|
|
(352)
|
|
|
(83)
|
|
|
Income tax effect
|
|||
|
$
|
485
|
|
|
$
|
573
|
|
|
$
|
135
|
|
|
Net income
|
|
|
|
|
|
|
|
|
||||||
Total reclassifications
|
|
|
|
|
|
|
|
||||||
for the period
|
$
|
790
|
|
|
$
|
930
|
|
|
$
|
318
|
|
|
Net income
|
(21)
|
Regulatory Capital Matters
|
|
Actual
|
|
Minimum Requirement
for “Adequately Capitalized” Institution plus fully phased in Capital Conservation Buffer |
|
Minimum
Requirement for "Well-Capitalized" Institution |
||||||||||||
|
Amount
|
Ratio
|
|
Amount
|
Ratio
|
|
Amount
|
Ratio
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
Dollars in thousands
|
||||||||||||||||
As of December 31, 2017:
|
|
|
|
|
|
|
|
|
|||||||||
Common Equity Tier 1 Risk-Based
|
|
|
|
|
|
|
|
|
|||||||||
Capital Ratio
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
$
|
335,153
|
|
10.57
|
%
|
|
$
|
221,969
|
|
7.00
|
%
|
|
N/A
|
|
N/A
|
|
|
Guaranty Bank and Trust Company
|
389,698
|
|
12.29
|
%
|
|
221,923
|
|
7.00
|
%
|
|
$
|
206,071
|
|
6.50
|
%
|
||
Tier 1 Risk-Based Capital Ratio
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
360,153
|
|
11.36
|
%
|
|
269,534
|
|
8.50
|
%
|
|
N/A
|
|
N/A
|
|
|||
Guaranty Bank and Trust Company
|
389,698
|
|
12.29
|
%
|
|
269,477
|
|
8.50
|
%
|
|
253,626
|
|
8.00
|
%
|
|||
Total Risk-Based Capital Ratio
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
423,583
|
|
13.36
|
%
|
|
332,954
|
|
10.50
|
%
|
|
N/A
|
|
N/A
|
|
|||
Guaranty Bank and Trust Company
|
413,128
|
|
13.03
|
%
|
|
332,884
|
|
10.50
|
%
|
|
317,032
|
|
10.00
|
%
|
|||
Leverage Ratio
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
360,153
|
|
10.21
|
%
|
|
141,164
|
|
4.00
|
%
|
|
N/A
|
|
N/A
|
|
|||
Guaranty Bank and Trust Company
|
389,698
|
|
11.05
|
%
|
|
141,075
|
|
4.00
|
%
|
|
176,344
|
|
5.00
|
%
|
|||
|
|
|
|
|
|
|
|
|
|||||||||
As of December 31, 2016:
|
|
|
|
|
|
|
|
|
|||||||||
Common Equity Tier 1 Risk-Based
|
|
|
|
|
|
|
|
|
|||||||||
Capital Ratio
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
$
|
296,146
|
|
10.46
|
%
|
|
$
|
198,249
|
|
7.00
|
%
|
|
N/A
|
|
N/A
|
|
|
Guaranty Bank and Trust Company
|
351,806
|
|
12.43
|
%
|
|
198,111
|
|
7.00
|
%
|
|
$
|
183,960
|
|
6.50
|
%
|
||
Tier 1 Risk-Based Capital Ratio
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
321,146
|
|
11.34
|
%
|
|
240,731
|
|
8.50
|
%
|
|
N/A
|
|
N/A
|
|
|||
Guaranty Bank and Trust Company
|
351,806
|
|
12.43
|
%
|
|
240,564
|
|
8.50
|
%
|
|
226,413
|
|
8.00
|
%
|
|||
Total Risk-Based Capital Ratio
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
384,552
|
|
13.00
|
%
|
|
297,373
|
|
10.50
|
%
|
|
N/A
|
|
N/A
|
|
|||
Guaranty Bank and Trust Company
|
375,213
|
|
13.26
|
%
|
|
297,167
|
|
10.50
|
%
|
|
283,016
|
|
10.00
|
%
|
|||
Leverage Ratio
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
321,146
|
|
9.81
|
%
|
|
130,927
|
|
4.00
|
%
|
|
N/A
|
|
N/A
|
|
|||
Guaranty Bank and Trust Company
|
351,806
|
|
10.76
|
%
|
|
130,841
|
|
4.00
|
%
|
|
163,552
|
|
5.00
|
%
|
(22)
|
Parent Company Only Condensed Financial Information
|
Balance Sheets
|
|||||||
(Parent Company Only)
|
|||||||
December 31, 2017 and 2016
|
|||||||
|
|
|
|
||||
|
2017
|
|
2016
|
||||
|
|
|
|
||||
|
(In thousands)
|
||||||
Assets
|
|
|
|
||||
Cash
|
$
|
11,762
|
|
|
$
|
9,469
|
|
Investments in subsidiaries
|
459,443
|
|
|
408,039
|
|
||
Other assets
|
1,443
|
|
|
2,742
|
|
||
Total assets
|
$
|
472,648
|
|
|
$
|
420,250
|
|
|
|
|
|
||||
Liabilities and Stockholders' Equity
|
|
|
|
||||
Liabilities:
|
|
|
|
||||
Subordinated debentures
|
$
|
65,065
|
|
|
$
|
64,981
|
|
Other liabilities
|
2,684
|
|
|
2,891
|
|
||
Total liabilities
|
67,749
|
|
|
67,872
|
|
||
Stockholders' equity:
|
|
|
|
||||
Common stock
|
32
|
|
|
31
|
|
||
Common stock - additional paid-in capital
|
859,509
|
|
|
832,067
|
|
||
Accumulated deficit
|
(343,383)
|
|
|
(367,944)
|
|
||
Accumulated other comprehensive loss
|
(4,694)
|
|
|
(6,726)
|
|
||
Treasury stock
|
(106,565)
|
|
|
(105,050)
|
|
||
Total stockholders' equity
|
404,899
|
|
|
352,378
|
|
||
Total liabilities and stockholders' equity
|
$
|
472,648
|
|
|
$
|
420,250
|
|
|
|
|
|
Statements of Income and Comprehensive Income
|
|||||||||||
(Parent Company Only)
|
|||||||||||
Years Ended December 31, 2017, 2016 and 2015
|
|||||||||||
|
|
|
|
|
|
||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
|
|
|
|
|
||||||
|
(In thousands)
|
||||||||||
Income:
|
|
|
|
|
|
||||||
Management fee - subsidiary bank
|
$
|
6,139
|
|
|
$
|
8,127
|
|
|
$
|
5,129
|
|
Dividends from subsidiary bank
|
18,700
|
|
|
9,800
|
|
|
8,400
|
|
|||
Other
|
1
|
|
|
-
|
|
|
28
|
|
|||
Total income
|
24,840
|
|
|
17,927
|
|
|
13,557
|
|
|||
Expenses:
|
|
|
|
|
|
||||||
Interest expense
|
3,440
|
|
|
2,005
|
|
|
814
|
|
|||
Salaries and benefits
|
3,736
|
|
|
3,838
|
|
|
3,325
|
|
|||
Professional services
|
2,083
|
|
|
1,774
|
|
|
1,779
|
|
|||
Other
|
1,633
|
|
|
3,759
|
|
|
953
|
|
|||
Total expenses
|
10,892
|
|
|
11,376
|
|
|
6,871
|
|
|||
Income before federal income taxes and equity
|
|
|
|
|
|
||||||
in undistributed net income of subsidiaries
|
13,948
|
|
|
6,551
|
|
|
6,686
|
|
|||
Income tax benefit
|
1,576
|
|
|
1,024
|
|
|
495
|
|
|||
Income before equity in undistributed
|
|
|
|
|
|
||||||
net income of subsidiaries
|
15,524
|
|
|
7,575
|
|
|
7,181
|
|
|||
Equity in undistributed income of subsidiaries
|
23,100
|
|
|
17,152
|
|
|
15,273
|
|
|||
Net income
|
$
|
38,624
|
|
|
$
|
24,727
|
|
|
$
|
22,454
|
|
|
|
|
|
|
|
||||||
Other Comprehensive Income (Loss)
|
2,032
|
|
|
(1,921)
|
|
|
(1,678)
|
|
|||
Total Comprehensive Income
|
$
|
40,656
|
|
|
$
|
22,806
|
|
|
$
|
20,776
|
|
Statements of Cash Flow
|
|||||||||||
(Parent Company Only)
|
|||||||||||
Years Ended December 31, 2017, 2016 and 2015
|
|||||||||||
|
|
|
|
|
|
||||||
|
2017
|
|
2016
|
|
2015
|
||||||
|
|
|
|
|
|
||||||
|
(In thousands)
|
||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
38,624
|
|
|
$
|
24,727
|
|
|
$
|
22,454
|
|
Reconciliation of net income to net cash from
|
|
|
|
|
|
||||||
operating activities:
|
|
|
|
|
|
||||||
Equity based compensation
|
1,123
|
|
|
1,168
|
|
|
990
|
|
|||
Net change in:
|
|
|
|
|
|
||||||
Other assets
|
1,298
|
|
|
1,474
|
|
|
(168)
|
|
|||
Other liabilities
|
(122)
|
|
|
1,454
|
|
|
111
|
|
|||
Equity in undistributed income
|
|
|
|
|
|
||||||
of consolidated subsidiaries
|
(23,100)
|
|
|
(17,152)
|
|
|
(15,273)
|
|
|||
Net cash from operating activities
|
17,823
|
|
|
11,671
|
|
|
8,114
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Cash paid in acquisition, net of cash acquired
|
48
|
|
|
(32,446)
|
|
|
-
|
|
|||
Net cash from investing activities
|
48
|
|
|
(32,446)
|
|
|
-
|
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Repurchase of common stock
|
(1,515)
|
|
|
(1,307)
|
|
|
(616)
|
|
|||
Proceeds from issuance of subordinated debt, net
|
|
|
|
|
|
||||||
of issuance costs
|
-
|
|
|
39,170
|
|
|
-
|
|
|||
Dividends paid
|
(14,063)
|
|
|
(10,524)
|
|
|
(8,429)
|
|
|||
Payment of stock issuance costs related to acquisition
|
-
|
|
|
(834)
|
|
|
-
|
|
|||
Net cash from financing activities
|
(15,578)
|
|
|
26,505
|
|
|
(9,045)
|
|
|||
Net change in cash and cash equivalents
|
2,293
|
|
|
5,730
|
|
|
(931)
|
|
|||
Cash and cash equivalents, beginning of year
|
9,469
|
|
|
3,739
|
|
|
4,670
|
|
|||
Cash and cash equivalents, end of year
|
$
|
11,762
|
|
|
$
|
9,469
|
|
|
$
|
3,739
|
|
|
Quarter Ended
|
||||||||||||||
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
||||||||
|
2017
|
|
2017
|
|
2017
|
|
2017
|
||||||||
|
(In thousands, except share data)
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Interest income
|
$
|
35,340
|
|
|
$
|
34,688
|
|
|
$
|
32,933
|
|
|
$
|
31,341
|
|
Interest expense
|
3,546
|
|
|
3,354
|
|
|
3,434
|
|
|
3,169
|
|
||||
Net interest income
|
31,794
|
|
|
31,334
|
|
|
29,499
|
|
|
28,172
|
|
||||
Provision for loan losses
|
284
|
|
|
497
|
|
|
206
|
|
|
5
|
|
||||
Net interest income after
|
|
|
|
|
|
|
|
||||||||
provision for loan losses
|
31,510
|
|
|
30,837
|
|
|
29,293
|
|
|
28,167
|
|
||||
Noninterest income
|
6,570
|
|
|
6,130
|
|
|
6,342
|
|
|
6,402
|
|
||||
Noninterest expense
|
23,956
|
|
|
21,807
|
|
|
20,503
|
|
|
20,529
|
|
||||
Income before income taxes
|
14,124
|
|
|
15,160
|
|
|
15,132
|
|
|
14,040
|
|
||||
Income tax expense
|
5,519
|
|
|
5,106
|
|
|
5,007
|
|
|
4,200
|
|
||||
Net income
|
$
|
8,605
|
|
|
$
|
10,054
|
|
|
$
|
10,125
|
|
|
$
|
9,840
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per common share–basic:
|
$
|
0.30
|
|
|
$
|
0.36
|
|
|
$
|
0.36
|
|
|
$
|
0.35
|
|
Earnings per common share–diluted:
|
$
|
0.30
|
|
|
$
|
0.36
|
|
|
$
|
0.36
|
|
|
$
|
0.35
|
|
|
Quarter Ended
|
||||||||||||||
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
||||||||
|
2016
|
|
2016
|
|
2016
|
|
2016
|
||||||||
|
(In thousands, except share data)
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Interest income
|
$
|
30,800
|
|
|
$
|
25,342
|
|
|
$
|
21,851
|
|
|
$
|
21,860
|
|
Interest expense
|
2,978
|
|
|
2,592
|
|
|
2,030
|
|
|
1,865
|
|
||||
Net interest income
|
27,822
|
|
|
22,750
|
|
|
19,821
|
|
|
19,995
|
|
||||
Provision for loan losses
|
90
|
|
|
27
|
|
|
10
|
|
|
16
|
|
||||
Net interest income after
|
|
|
|
|
|
|
|
||||||||
provision for loan losses
|
27,732
|
|
|
22,723
|
|
|
19,811
|
|
|
19,979
|
|
||||
Noninterest income
|
6,232
|
|
|
4,705
|
|
|
4,142
|
|
|
4,178
|
|
||||
Noninterest expense
|
23,237
|
|
|
18,624
|
|
|
15,134
|
|
|
15,792
|
|
||||
Income before income taxes
|
10,727
|
|
|
8,804
|
|
|
8,819
|
|
|
8,365
|
|
||||
Income tax expense
|
3,306
|
|
|
3,039
|
|
|
3,133
|
|
|
2,510
|
|
||||
Net income
|
$
|
7,421
|
|
|
$
|
5,765
|
|
|
$
|
5,686
|
|
|
$
|
5,855
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per common share–basic:
|
$
|
0.27
|
|
|
$
|
0.25
|
|
|
$
|
0.27
|
|
|
$
|
0.28
|
|
Earnings per common share–diluted:
|
$
|
0.26
|
|
|
$
|
0.25
|
|
|
$
|
0.27
|
|
|
$
|
0.27
|
|
|
|
|
|
|
FINANCIAL STATEMENTS
|
|
|
|
|
|
|
|||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
|
|
|
|
|
|
|||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
|
|
|
|
|
|
|
|||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|||
NOTES UNAUDITED CONDENSED CONSOLIDATED TO FINANCIAL STATEMENTS
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
|
2018
|
|
2017
|
|
|
(In thousands, except share and per share data)
|
||
Assets
|
|
|
|
|
Cash and due from banks
|
$
|
39,188
|
$
|
51,553
|
Time deposits with banks
|
|
254
|
|
254
|
Securities available for sale, at fair value
|
|
335,025
|
|
329,977
|
Securities held to maturity (fair value of $241,636 and $257,665
|
|
|
|
|
at September 30, 2018 and December 31, 2017)
|
|
251,188
|
|
259,916
|
Bank stocks, at cost
|
|
26,021
|
|
24,419
|
Total investments
|
|
612,234
|
|
614,312
|
Loans held for sale
|
|
2,228
|
|
1,725
|
Loans, held for investment, net of deferred costs and fees
|
|
2,929,415
|
|
2,805,663
|
Less allowance for loan losses
|
|
(23,750)
|
|
(23,250)
|
Net loans, held for investment
|
|
2,905,665
|
|
2,782,413
|
Premises and equipment, net
|
|
63,030
|
|
65,874
|
Other real estate owned and foreclosed assets
|
|
596
|
|
761
|
Goodwill
|
|
67,917
|
|
65,106
|
Other intangible assets, net
|
|
15,814
|
|
14,441
|
Bank-owned life insurance
|
|
80,277
|
|
78,573
|
Other assets
|
|
23,324
|
|
23,878
|
Total assets
|
$
|
3,810,527
|
$
|
3,698,890
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
Liabilities:
|
|
|
|
|
Deposits:
|
|
|
|
|
Noninterest-bearing demand
|
$
|
960,931
|
$
|
939,550
|
Interest-bearing demand and NOW
|
|
850,848
|
|
813,882
|
Money market
|
|
570,995
|
|
527,621
|
Savings
|
|
211,996
|
|
201,687
|
Time
|
|
465,177
|
|
458,887
|
Total deposits
|
|
3,059,947
|
|
2,941,627
|
Securities sold under agreement to repurchase
|
|
8,622
|
|
44,746
|
Federal Home Loan Bank line of credit borrowing
|
|
183,060
|
|
157,444
|
Federal Home Loan Bank term notes
|
|
50,000
|
|
70,000
|
Subordinated debentures, net
|
|
65,127
|
|
65,065
|
Interest payable and other liabilities
|
|
15,532
|
|
15,109
|
Total liabilities
|
|
3,382,288
|
|
3,293,991
|
Stockholders’ equity:
|
|
|
|
|
Common stock
(1)
|
|
32
|
|
32
|
Additional paid-in capital - common stock
|
|
862,094
|
|
859,509
|
Accumulated deficit
|
|
(314,678)
|
|
(343,383)
|
Accumulated other comprehensive loss
|
|
(11,517)
|
|
(4,694)
|
Treasury stock, at cost, 2,461,802 and 2,421,208 shares, respectively
|
|
(107,692)
|
|
(106,565)
|
Total stockholders’ equity
|
|
428,239
|
|
404,899
|
Total liabilities and stockholders’ equity
|
$
|
3,810,527
|
$
|
3,698,890
|
(1)
|
Common stock—$0.001 par value; 40,000,000 shares authorized; 31,765,316 shares issued and 29,303,514 shares outstanding at September 30, 2018 (includes 430,501 shares of unvested restricted stock); 40,000,000 shares authorized; 31,643,472 shares issued and 29,222,264 shares outstanding at December 31, 2017 (includes 434,149 shares of unvested restricted stock).
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
||||
|
|
September 30,
|
|
|
September 30,
|
||||
|
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except share and per share data)
|
|||||||
Interest income:
|
|
|
|
|
|
|
|
|
|
Loans, including costs and fees
|
$
|
33,825
|
$
|
30,902
|
|
$
|
99,489
|
$
|
87,270
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
2,652
|
|
2,221
|
|
|
7,763
|
|
6,892
|
Tax-exempt
|
|
1,206
|
|
1,233
|
|
|
3,659
|
|
3,713
|
Dividends
|
|
406
|
|
275
|
|
|
1,220
|
|
1,011
|
Federal funds sold and other
|
|
26
|
|
57
|
|
|
83
|
|
76
|
Total interest income
|
|
38,115
|
|
34,688
|
|
|
112,214
|
|
98,962
|
Interest expense:
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
3,186
|
|
1,939
|
|
|
8,234
|
|
5,262
|
Securities sold under agreement to repurchase
|
|
23
|
|
16
|
|
|
71
|
|
48
|
Federal funds purchased
|
|
33
|
|
-
|
|
|
56
|
|
-
|
Borrowings
|
|
1,146
|
|
531
|
|
|
3,333
|
|
2,079
|
Subordinated debentures
|
|
937
|
|
868
|
|
|
2,759
|
|
2,568
|
Total interest expense
|
|
5,325
|
|
3,354
|
|
|
14,453
|
|
9,957
|
Net interest income
|
|
32,790
|
|
31,334
|
|
|
97,761
|
|
89,005
|
Provision for loan losses
|
|
206
|
|
497
|
|
|
924
|
|
708
|
Net interest income, after provision for loan losses
|
|
32,584
|
|
30,837
|
|
|
96,837
|
|
88,297
|
Noninterest income:
|
|
|
|
|
|
|
|
|
|
Deposit service and other fees
|
|
3,571
|
|
3,580
|
|
|
10,538
|
|
10,405
|
Investment management and trust
|
|
2,750
|
|
1,478
|
|
|
7,514
|
|
4,482
|
Increase in cash surrender value of life insurance
|
|
670
|
|
674
|
|
|
2,001
|
|
1,884
|
Gain (loss) on sale of securities
|
|
-
|
|
(86)
|
|
|
16
|
|
(86)
|
Gain on sale of SBA loans
|
|
430
|
|
143
|
|
|
916
|
|
971
|
Other
|
|
851
|
|
341
|
|
|
1,612
|
|
1,218
|
Total noninterest income
|
|
8,272
|
|
6,130
|
|
|
22,597
|
|
18,874
|
Noninterest expense:
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits
|
|
12,617
|
|
11,736
|
|
|
38,391
|
|
34,909
|
Occupancy expense
|
|
1,667
|
|
1,714
|
|
|
5,086
|
|
4,940
|
Furniture and equipment
|
|
1,009
|
|
974
|
|
|
3,100
|
|
2,894
|
Amortization of intangible assets
|
|
924
|
|
672
|
|
|
2,788
|
|
1,969
|
Other real estate owned, net
|
|
19
|
|
(20)
|
|
|
60
|
|
174
|
Insurance and assessments
|
|
694
|
|
642
|
|
|
2,061
|
|
1,995
|
Professional fees
|
|
905
|
|
929
|
|
|
3,036
|
|
3,155
|
Impairment of long-lived assets
|
|
-
|
|
-
|
|
|
-
|
|
224
|
Other general and administrative
|
|
3,775
|
|
5,160
|
|
|
11,705
|
|
12,579
|
Total noninterest expense
|
|
21,610
|
|
21,807
|
|
|
66,227
|
|
62,839
|
Income before income taxes
|
|
19,246
|
|
15,160
|
|
|
53,207
|
|
44,332
|
Income tax expense
|
|
4,302
|
|
5,106
|
|
|
11,443
|
|
14,313
|
Net income
|
$
|
14,944
|
$
|
10,054
|
|
$
|
41,764
|
$
|
30,019
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share–basic:
|
$
|
0.52
|
$
|
0.36
|
|
$
|
1.45
|
$
|
1.08
|
Earnings per common share–diluted:
|
|
0.51
|
|
0.36
|
|
|
1.44
|
|
1.07
|
Dividends declared per common share:
|
|
0.16
|
|
0.13
|
|
|
0.49
|
|
0.38
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding-basic:
|
|
28,868,984
|
|
27,920,658
|
|
|
28,851,952
|
|
27,900,627
|
Weighted average common shares outstanding-diluted:
|
|
29,068,332
|
|
28,120,111
|
|
|
29,083,965
|
|
28,140,332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
||||||
|
|
September 30,
|
|
|
September 30,
|
||||||
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
14,944
|
|
$
|
10,054
|
|
$
|
41,764
|
|
$
|
30,019
|
Change in net unrealized gains (losses) on available for sale
|
|
|
|
|
|
|
|
|
|
|
|
securities during the period excluding the change attributable to
|
|
|
|
|
|
|
|
|
|
|
|
available for sale securities reclassified to held to maturity
|
|
(2,592)
|
|
|
91
|
|
|
(9,086)
|
|
|
2,249
|
Income tax effect
|
|
640
|
|
|
(35)
|
|
|
2,241
|
|
|
(855)
|
Change in unamortized loss on available for sale securities
|
|
|
|
|
|
|
|
|
|
|
|
reclassified into held to maturity securities
|
|
102
|
|
|
120
|
|
|
316
|
|
|
365
|
Income tax effect
|
|
(25)
|
|
|
(46)
|
|
|
(78)
|
|
|
(139)
|
Reclassification adjustment for net losses (gains) included
|
|
|
|
|
|
|
|
|
|
|
|
in net income during the period
|
|
-
|
|
|
86
|
|
|
(16)
|
|
|
86
|
Income tax effect
|
|
-
|
|
|
(33)
|
|
|
4
|
|
|
(33)
|
Change in fair value of derivatives during the period
|
|
101
|
|
|
33
|
|
|
808
|
|
|
(187)
|
Income tax effect
|
|
(25)
|
|
|
(13)
|
|
|
(199)
|
|
|
71
|
Reclassification adjustment of losses on derivatives
|
|
|
|
|
|
|
|
|
|
|
|
during the period
|
|
52
|
|
|
190
|
|
|
263
|
|
|
609
|
Income tax effect
|
|
(13)
|
|
|
(72)
|
|
|
(65)
|
|
|
(231)
|
Other comprehensive income (loss)
|
|
(1,760)
|
|
|
321
|
|
|
(5,812)
|
|
|
1,935
|
Total comprehensive income
|
$
|
13,184
|
|
$
|
10,375
|
|
$
|
35,952
|
|
$
|
31,954
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock
Shares Outstanding |
|
Common Stock
and Additional Paid-in Capital |
|
Treasury
Stock |
|
Accumulated
Deficit |
|
Accumulated Other
Comprehensive Loss |
|
Totals
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, January 1, 2017
|
28,334,004
|
$
|
832,098
|
$
|
(105,050)
|
$
|
(367,944)
|
$
|
(6,726)
|
$
|
352,378
|
Net income
|
-
|
|
-
|
|
-
|
|
30,019
|
|
-
|
|
30,019
|
Other comprehensive income
|
-
|
|
-
|
|
-
|
|
-
|
|
1,935
|
|
1,935
|
Stock compensation awards, net of forfeitures
|
108,011
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Stock based compensation, net
|
-
|
|
2,272
|
|
-
|
|
-
|
|
-
|
|
2,272
|
Repurchase of common stock
|
(40,145)
|
|
-
|
|
(985)
|
|
-
|
|
-
|
|
(985)
|
Dividends paid
|
-
|
|
-
|
|
-
|
|
(10,467)
|
|
-
|
|
(10,467)
|
Balance, September 30, 2017
|
28,401,870
|
$
|
834,370
|
$
|
(106,035)
|
$
|
(348,392)
|
$
|
(4,791)
|
$
|
375,152
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, January 1, 2018
|
29,222,264
|
$
|
859,541
|
$
|
(106,565)
|
$
|
(343,383)
|
$
|
(4,694)
|
$
|
404,899
|
Net income
|
-
|
|
-
|
|
-
|
|
41,764
|
|
-
|
|
41,764
|
Other comprehensive loss
|
-
|
|
-
|
|
-
|
|
-
|
|
(5,812)
|
|
(5,812)
|
Stock compensation awards, net of forfeitures
|
121,844
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Stock based compensation, net
|
-
|
|
2,585
|
|
-
|
|
-
|
|
-
|
|
2,585
|
Repurchase of common stock
|
(40,594)
|
|
-
|
|
(1,127)
|
|
-
|
|
-
|
|
(1,127)
|
Reclassification of stranded tax effect
|
-
|
|
-
|
|
-
|
|
1,011
|
|
(1,011)
|
|
-
|
Dividends paid
|
-
|
|
-
|
|
-
|
|
(14,070)
|
|
-
|
|
(14,070)
|
Balance, September 30, 2018
|
29,303,514
|
$
|
862,126
|
$
|
(107,692)
|
$
|
(314,678)
|
$
|
(11,517)
|
$
|
428,239
|
|
|
Nine Months Ended September 30,
|
|||
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
|
(In thousands)
|
|||
Cash flows from operating activities:
|
|
|
|
|
|
Net income
|
$
|
41,764
|
|
$
|
30,019
|
Reconciliation of net income to net cash from operating activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
5,009
|
|
|
4,178
|
Net accretion on investment and loan portfolios
|
|
(844)
|
|
|
(392)
|
Provision for loan losses
|
|
924
|
|
|
708
|
Impairment of long-lived assets
|
|
-
|
|
|
224
|
Stock compensation, net
|
|
2,585
|
|
|
2,272
|
Dividends on bank stocks
|
|
(512)
|
|
|
(362)
|
Increase in cash surrender value of life insurance
|
|
(1,704)
|
|
|
(1,587)
|
Net gain on sale of securities and SBA loans
|
|
(932)
|
|
|
(885)
|
Gain on the sale of other assets
|
|
(954)
|
|
|
(271)
|
Origination of SBA loans with intent to sell
|
|
(11,421)
|
|
|
(5,413)
|
Proceeds from the sale of SBA loans originated with intent to sell
|
|
11,719
|
|
|
10,641
|
Loss, net, and valuation adjustments on real estate owned
|
|
49
|
|
|
160
|
Net change in:
|
|
|
|
|
|
Interest receivable and other assets
|
|
10
|
|
|
1,433
|
Net deferred income tax assets
|
|
118
|
|
|
493
|
Interest payable and other liabilities
|
|
(1,000)
|
|
|
(2,804)
|
Net cash from operating activities
|
|
44,811
|
|
|
38,414
|
Cash flows from investing activities:
|
|
|
|
|
|
Activity in available for sale securities:
|
|
|
|
|
|
Sales, maturities, prepayments and calls
|
|
28,619
|
|
|
83,967
|
Purchases
|
|
(44,352)
|
|
|
(57,765)
|
Activity in held to maturity securities and bank stocks:
|
|
|
|
|
|
Maturities, prepayments and calls
|
|
22,555
|
|
|
18,431
|
Purchases
|
|
(15,962)
|
|
|
(30,184)
|
Loan originations, net of principal collections
|
|
(114,020)
|
|
|
(69,615)
|
Loan purchases
|
|
(6,465)
|
|
|
(79,154)
|
Purchase of bank-owned life insurance contracts
|
|
-
|
|
|
(7,500)
|
Proceeds from sale of other assets
|
|
5,687
|
|
|
1,463
|
Proceeds from sales of other real estate owned and foreclosed assets
|
|
112
|
|
|
514
|
Proceeds from sale of SBA and other loans transferred to held for sale
|
|
-
|
|
|
3,940
|
Additions to premises and equipment
|
|
(803)
|
|
|
(879)
|
Cash paid in acquisition, net of cash received
|
|
(5,223)
|
|
|
-
|
Net cash from investing activities
|
|
(129,852)
|
|
|
(136,782)
|
Cash flows from financing activities:
|
|
|
|
|
|
Net change in deposits
|
|
118,381
|
|
|
199,020
|
Repayment of Federal Home Loan Bank term notes
|
|
(20,000)
|
|
|
(2,409)
|
Net change in borrowings on Federal Home Loan Bank line of credit
|
|
25,616
|
|
|
(73,509)
|
Cash dividends on common stock
|
|
(14,070)
|
|
|
(10,467)
|
Net change in repurchase agreements and federal funds purchased
|
|
(36,124)
|
|
|
995
|
Repurchase of common stock
|
|
(1,127)
|
|
|
(985)
|
Net cash from financing activities
|
|
72,676
|
|
|
112,645
|
Net change in cash and cash equivalents
|
|
(12,365)
|
|
|
14,277
|
Cash and cash equivalents, beginning of period
|
|
51,553
|
|
|
50,111
|
Cash and cash equivalents, end of period
|
$
|
39,188
|
|
$
|
64,388
|
(1)
|
Organization, Operations and Basis of Presentation
|
(a)
|
Basis of Presentation
|
(b)
|
Business Combinations
|
(c)
|
Use of Estimates
|
(d)
|
Loans and Loan Commitments
|
(e)
|
Allowance for Loan Losses and Allowance for Unfunded Commitments
|
(f)
|
Goodwill and Other Intangible Assets
|
(g)
|
Derivative Instruments
|
(h)
|
Stock Incentive Plan
|
(i)
|
Stock Repurchase Plan
|
(j)
|
Income Taxes
|
(k)
|
Earnings per Common Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
Average common shares outstanding
|
28,868,984
|
|
27,920,658
|
|
28,851,952
|
|
27,900,627
|
Effect of dilutive unvested stock grants
(1)
|
199,348
|
|
199,453
|
|
232,013
|
|
239,705
|
Average shares outstanding for calculated
|
|
|
|
|
|
|
|
diluted earnings per common share
|
29,068,332
|
|
28,120,111
|
|
29,083,965
|
|
28,140,332
|
_____________
|
|
|
|
|
|
|
|
(1)
Unvested stock grants representing 430,501 shares at September 30, 2018 had a dilutive impact of 199,348 and 232,013 shares in the diluted earnings per share calculation for the three and nine months ended September 30, 2018, respectively. Unvested stock grants representing 476,549 shares at September 30, 2017 had a dilutive impact of 199,453 and 239,705 shares in the diluted earnings per share calculation for the three and nine months ended September 30, 2017, respectively.
|
(l)
|
Recently Issued Accounting Standards
|
(m)
|
Reclassifications
|
(2)
|
Business Combinations
|
|
|
|
|
|
|
Assets acquired:
|
|
|
|
|
(In thousands)
|
Goodwill
|
$
|
2,811
|
Other intangible assets, net
|
|
4,161
|
Premises and equipment, net
|
|
24
|
Other assets
|
|
188
|
Total assets acquired
|
|
7,184
|
|
|
|
Liabilities assumed:
|
|
|
Other liabilities
|
|
115
|
Anniversary payment liability
|
|
1,846
|
Total liabilities assumed
|
|
1,961
|
Net assets acquired
|
$
|
5,223
|
|
|
|
Assets acquired:
|
|
|
|
|
(In thousands)
|
Cash and cash equivalents
|
$
|
21,717
|
Securities available for sale
|
|
39,670
|
Bank stocks
|
|
705
|
Net Loans
|
|
71,052
|
Premises and equipment, net
|
|
4,184
|
Other real estate owned
|
|
761
|
Goodwill
|
|
8,702
|
Other intangible assets, net
|
|
1,870
|
Bank owned life insurance
|
|
3,371
|
Other assets
|
|
1,048
|
Total assets acquired
|
|
153,080
|
|
|
|
Liabilities assumed:
|
|
|
Deposits
|
|
128,450
|
Other liabilities
|
|
209
|
Total liabilities assumed
|
|
128,659
|
Net assets acquired
|
$
|
24,421
|
|
|
|
|
|
October 27,
|
|
|
2017
|
|
|
(In thousands)
|
Commercial and residential real estate
|
$
|
51,531
|
Construction
|
|
6,337
|
Commercial
|
|
5,666
|
Agricultural
|
|
3,735
|
Consumer
|
|
3,783
|
Total gross loans
|
$
|
71,052
|
(3)
|
Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair
Value |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Amortized
Cost |
|
|
(In thousands)
|
||||||
September 30, 2018:
|
|
|
|
|
|
|
|
|
Securities available for sale:
|
|
|
|
|
|
|
|
|
State and municipal
|
$
|
78,094
|
$
|
74
|
$
|
(3,043)
|
$
|
81,063
|
Mortgage-backed - agency / residential
|
|
156,476
|
|
28
|
|
(6,787)
|
|
163,235
|
Corporate
|
|
95,196
|
|
79
|
|
(3,865)
|
|
98,982
|
Collateralized loan obligations
|
|
5,259
|
|
6
|
|
(32)
|
|
5,285
|
Total securities available for sale
|
$
|
335,025
|
$
|
187
|
$
|
(13,727)
|
$
|
348,565
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2017:
|
|
|
|
|
|
|
|
|
Securities available for sale:
|
|
|
|
|
|
|
|
|
State and municipal
|
$
|
82,486
|
$
|
530
|
$
|
(1,224)
|
$
|
83,180
|
Mortgage-backed - agency / residential
|
|
131,180
|
|
133
|
|
(3,069)
|
|
134,116
|
Corporate
|
|
103,512
|
|
546
|
|
(1,320)
|
|
104,286
|
Collateralized loan obligations
|
|
12,799
|
|
17
|
|
(51)
|
|
12,833
|
Total securities available for sale
|
$
|
329,977
|
$
|
1,226
|
$
|
(5,664)
|
$
|
334,415
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair
Value |
|
Gross
Unrecognized Gains |
|
Gross
Unrecognized Losses |
|
Amortized
Cost |
|
|
(In thousands)
|
||||||
September 30, 2018:
|
|
|
|
|
|
|
|
|
Securities held to maturity:
|
|
|
|
|
|
|
|
|
State and municipal
|
$
|
130,468
|
$
|
366
|
$
|
(4,666)
|
$
|
134,768
|
Mortgage-backed - agency / residential
|
|
95,945
|
|
24
|
|
(4,769)
|
|
100,690
|
Asset-backed
|
|
14,023
|
|
-
|
|
(507)
|
|
14,530
|
Other
|
|
1,200
|
|
-
|
|
-
|
|
1,200
|
Total securities held to maturity
|
$
|
241,636
|
$
|
390
|
$
|
(9,942)
|
$
|
251,188
|
|
|
|
|
|
|
|
|
|
December 31, 2017:
|
|
|
|
|
|
|
|
|
Securities held to maturity:
|
|
|
|
|
|
|
|
|
State and municipal
|
$
|
136,490
|
$
|
1,121
|
$
|
(1,530)
|
$
|
136,899
|
Mortgage-backed - agency / residential
|
|
103,925
|
|
315
|
|
(2,088)
|
|
105,698
|
Asset-backed
|
|
16,050
|
|
7
|
|
(76)
|
|
16,119
|
Other
|
|
1,200
|
|
-
|
|
-
|
|
1,200
|
Total securities held to maturity
|
$
|
257,665
|
$
|
1,443
|
$
|
(3,694)
|
$
|
259,916
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
||||
|
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|||||||
Proceeds
|
$
|
-
|
$
|
48,320
|
|
$
|
1,022
|
$
|
48,320
|
Gross gains
|
|
-
|
|
254
|
|
|
16
|
|
254
|
Gross losses
|
|
-
|
|
(340)
|
|
|
-
|
|
(340)
|
Net tax (benefit) expense related to
|
|
|
|
|
|
|
|
|
|
gains (losses) on sale
|
|
-
|
|
(33)
|
|
|
4
|
|
(33)
|
|
|
|
|
|
|
|
|
|
|
|
|
Available for Sale
|
||
|
|
Fair Value
|
|
Amortized Cost
|
|
|
(In thousands)
|
||
Securities available for sale:
|
|
|
|
|
Due in one year or less
|
$
|
5,322
|
$
|
5,330
|
Due after one year through five years
|
|
17,443
|
|
17,874
|
Due after five years through ten years
|
|
99,877
|
|
104,704
|
Due after ten years
|
|
50,648
|
|
52,137
|
Total AFS, excluding mortgage-backed (MBS)
|
|
|
|
|
and collateralized loan obligations
|
|
173,290
|
|
180,045
|
Mortgage-backed and collateralized
|
|
|
|
|
loan obligations
|
|
161,735
|
|
168,520
|
Total securities available for sale
|
$
|
335,025
|
$
|
348,565
|
|
|
|
|
|
|
|
|
|
|
|
|
Held to Maturity
|
||
|
|
Fair Value
|
|
Amortized Cost
|
|
|
(In thousands)
|
||
Securities held to maturity:
|
|
|
|
|
Due in one year or less
|
$
|
4,383
|
$
|
4,376
|
Due after one year through five years
|
|
19,284
|
|
19,687
|
Due after five years through ten years
|
|
71,964
|
|
74,069
|
Due after ten years
|
|
36,037
|
|
37,836
|
Total HTM, excluding MBS and asset-backed
|
|
131,668
|
|
135,968
|
Mortgage-backed and asset-backed
|
|
109,968
|
|
115,220
|
Total securities held to maturity
|
$
|
241,636
|
$
|
251,188
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2018
|
|
Less than 12 Months
|
|
|
12 Months or More
|
|
|
Total
|
|||||||||
|
|
Fair
Value |
|
|
Unrealized
Losses |
|
|
Fair
Value |
|
|
Unrealized
Losses |
|
|
Fair
Value |
|
|
Unrealized
Losses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|||||||||||||||
Description of securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State and municipal
|
$
|
27,272
|
|
$
|
(681)
|
|
$
|
40,902
|
|
$
|
(2,362)
|
|
$
|
68,174
|
|
$
|
(3,043)
|
Mortgage-backed - agency /
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
residential
|
|
75,446
|
|
|
(1,620)
|
|
|
75,407
|
|
|
(5,167)
|
|
|
150,853
|
|
|
(6,787)
|
Corporate
|
|
39,418
|
|
|
(679)
|
|
|
47,657
|
|
|
(3,186)
|
|
|
87,075
|
|
|
(3,865)
|
Collateralized loan obligations
|
|
-
|
|
|
-
|
|
|
3,004
|
|
|
(32)
|
|
|
3,004
|
|
|
(32)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State and municipal
|
|
29,501
|
|
|
(926)
|
|
|
80,141
|
|
|
(4,459)
|
|
|
109,642
|
|
|
(5,385)
|
Mortgage-backed - agency /
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
residential
|
|
13,812
|
|
|
(501)
|
|
|
81,365
|
|
|
(5,110)
|
|
|
95,177
|
|
|
(5,611)
|
Asset-backed
|
|
-
|
|
|
-
|
|
|
14,023
|
|
|
(811)
|
|
|
14,023
|
|
|
(811)
|
Total temporarily impaired
|
$
|
185,449
|
|
$
|
(4,407)
|
|
$
|
342,499
|
|
$
|
(21,127)
|
|
$
|
527,948
|
|
$
|
(25,534)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2017
|
|
Less than 12 Months
|
|
|
12 Months or More
|
|
|
Total
|
|||||||||
|
|
Fair
Value |
|
|
Unrealized
Losses |
|
|
Fair
Value |
|
|
Unrealized
Losses |
|
|
Fair
Value |
|
|
Unrealized
Losses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|||||||||||||||
Description of securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State and municipal
|
$
|
8,710
|
|
$
|
(82)
|
|
$
|
36,894
|
|
$
|
(1,142)
|
|
$
|
45,604
|
|
$
|
(1,224)
|
Mortgage-backed - agency /
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
residential
|
|
43,494
|
|
|
(315)
|
|
|
77,909
|
|
|
(2,754)
|
|
|
121,403
|
|
|
(3,069)
|
Corporate
|
|
38,267
|
|
|
(567)
|
|
|
23,731
|
|
|
(753)
|
|
|
61,998
|
|
|
(1,320)
|
Collateralized loan obligations
|
|
4,532
|
|
|
(13)
|
|
|
3,011
|
|
|
(38)
|
|
|
7,543
|
|
|
(51)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State and municipal
|
|
18,521
|
|
|
(167)
|
|
|
69,314
|
|
|
(2,057)
|
|
|
87,835
|
|
|
(2,224)
|
Mortgage-backed - agency /
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
residential
|
|
19,721
|
|
|
(162)
|
|
|
78,472
|
|
|
(2,685)
|
|
|
98,193
|
|
|
(2,847)
|
Asset-backed
|
|
-
|
|
|
-
|
|
|
16,051
|
|
|
(448)
|
|
|
16,051
|
|
|
(448)
|
Total temporarily impaired
|
$
|
133,245
|
|
$
|
(1,306)
|
|
$
|
305,382
|
|
$
|
(9,877)
|
|
$
|
438,627
|
|
$
|
(11,183)
|
(4)
|
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
|
(In thousands)
|
|||
Commercial and residential real estate
|
$
|
2,074,512
|
|
$
|
1,977,431
|
Construction
|
|
125,305
|
|
|
99,965
|
Commercial
|
|
558,181
|
|
|
523,355
|
Agricultural
|
|
14,987
|
|
|
16,995
|
Consumer
|
|
114,320
|
|
|
143,066
|
SBA
|
|
41,073
|
|
|
44,121
|
Other
|
|
330
|
|
|
866
|
Total gross loans
|
|
2,928,708
|
|
|
2,805,799
|
Deferred costs and (fees)
|
|
707
|
|
|
(136)
|
Loans, held for investment, net
|
|
2,929,415
|
|
|
2,805,663
|
Less allowance for loan losses
|
|
(23,750)
|
|
|
(23,250)
|
Net loans, held for investment
|
$
|
2,905,665
|
|
$
|
2,782,413
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
||||||
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|||||||||
Balance, beginning of period
|
$
|
23,750
|
|
$
|
23,125
|
|
$
|
23,250
|
|
$
|
23,250
|
Provision for loan losses
|
|
206
|
|
|
497
|
|
|
924
|
|
|
708
|
Loans charged-off
|
|
(245)
|
|
|
(970)
|
|
|
(838)
|
|
|
(1,433)
|
Recoveries on loans previously
|
|
|
|
|
|
|
|
|
|
|
|
charged-off
|
|
39
|
|
|
248
|
|
|
414
|
|
|
375
|
Balance, end of period
|
$
|
23,750
|
|
$
|
22,900
|
|
$
|
23,750
|
|
$
|
22,900
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate
|
|
|
Consumer and
Installment |
|
|
Commercial
and Other |
|
|
Total
|
|
|
(In thousands)
|
|||||||||
Allowance for Loan Losses
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of January 1, 2018
|
$
|
18,545
|
|
$
|
310
|
|
$
|
4,395
|
|
$
|
23,250
|
Charge-offs
|
|
(9)
|
|
|
(424)
|
|
|
(405)
|
|
|
(838)
|
Recoveries
|
|
330
|
|
|
16
|
|
|
68
|
|
|
414
|
Provision (credit)
|
|
(949)
|
|
|
327
|
|
|
1,546
|
|
|
924
|
Balance as of September 30, 2018
|
$
|
17,917
|
|
$
|
229
|
|
$
|
5,604
|
|
$
|
23,750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of July 1, 2018
|
$
|
18,058
|
|
$
|
212
|
|
$
|
5,480
|
|
$
|
23,750
|
Charge-offs
|
|
(8)
|
|
|
(126)
|
|
|
(111)
|
|
|
(245)
|
Recoveries
|
|
14
|
|
|
9
|
|
|
16
|
|
|
39
|
Provision (credit)
|
|
(147)
|
|
|
134
|
|
|
219
|
|
|
206
|
Balance as of September 30, 2018
|
$
|
17,917
|
|
$
|
229
|
|
$
|
5,604
|
|
$
|
23,750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances at September 30, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for Loan Losses
|
|
|
|
|
|
|
|
|
|
|
|
Individually evaluated
|
$
|
-
|
|
$
|
-
|
|
$
|
2,351
|
|
$
|
2,351
|
Collectively evaluated
|
|
17,917
|
|
|
229
|
|
|
3,253
|
|
|
21,399
|
Total
|
$
|
17,917
|
|
$
|
229
|
|
$
|
5,604
|
|
$
|
23,750
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
|
|
|
|
|
|
|
|
|
Individually evaluated
|
$
|
8,886
|
|
$
|
-
|
|
$
|
12,170
|
|
$
|
21,056
|
Collectively evaluated
|
|
2,341,297
|
|
|
54,860
|
|
|
512,202
|
|
|
2,908,359
|
Total
|
$
|
2,350,183
|
|
$
|
54,860
|
|
$
|
524,372
|
|
$
|
2,929,415
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate
|
|
|
Consumer and
Installment |
|
|
Commercial
and Other |
|
|
Total
|
|
|
(In thousands)
|
|||||||||
Allowance for Loan Losses
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of January 1, 2017
|
$
|
20,082
|
|
$
|
105
|
|
$
|
3,063
|
|
$
|
23,250
|
Charge-offs
|
|
(383)
|
|
|
(92)
|
|
|
(958)
|
|
|
(1,433)
|
Recoveries
|
|
86
|
|
|
11
|
|
|
278
|
|
|
375
|
Provision (credit)
|
|
(915)
|
|
|
159
|
|
|
1,464
|
|
|
708
|
Balance as of September 30, 2017
|
$
|
18,870
|
|
$
|
183
|
|
$
|
3,847
|
|
$
|
22,900
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of July 1, 2017
|
$
|
19,400
|
|
$
|
193
|
|
$
|
3,532
|
|
$
|
23,125
|
Charge-offs
|
|
(250)
|
|
|
(75)
|
|
|
(645)
|
|
|
(970)
|
Recoveries
|
|
21
|
|
|
4
|
|
|
223
|
|
|
248
|
Provision (credit)
|
|
(301)
|
|
|
61
|
|
|
737
|
|
|
497
|
Balance as of September 30, 2017
|
$
|
18,870
|
|
$
|
183
|
|
$
|
3,847
|
|
$
|
22,900
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances at December 31, 2017:
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for Loan Losses
|
|
|
|
|
|
|
|
|
|
|
|
Individually evaluated
|
$
|
1
|
|
$
|
-
|
|
$
|
1,121
|
|
$
|
1,122
|
Collectively evaluated
|
|
18,544
|
|
|
310
|
|
|
3,274
|
|
|
22,128
|
Total
|
$
|
18,545
|
|
$
|
310
|
|
$
|
4,395
|
|
$
|
23,250
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
|
|
|
|
|
|
|
|
|
Individually evaluated
|
$
|
11,256
|
|
$
|
1
|
|
$
|
12,363
|
|
$
|
23,620
|
Collectively evaluated
|
|
2,225,944
|
|
|
74,675
|
|
|
481,424
|
|
|
2,782,043
|
Total
|
$
|
2,237,200
|
|
$
|
74,676
|
|
$
|
493,787
|
|
$
|
2,805,663
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2018
|
|
Recorded
Investment |
|
|
Unpaid
Balance |
|
|
Related
Allowance |
|
|
Average
Recorded Investment YTD |
|
|
Interest
Income Recognized YTD |
|
|
(In thousands)
|
||||||||||||
Impaired loans with no related allowance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and residential real estate
|
$
|
7,791
|
|
$
|
8,330
|
|
$
|
-
|
|
$
|
8,871
|
|
$
|
270
|
Construction
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Commercial
|
|
6,728
|
|
|
7,254
|
|
|
-
|
|
|
3,987
|
|
|
309
|
Consumer
|
|
72
|
|
|
86
|
|
|
-
|
|
|
214
|
|
|
5
|
Other
|
|
1,921
|
|
|
2,503
|
|
|
-
|
|
|
2,153
|
|
|
49
|
Total
|
$
|
16,512
|
|
$
|
18,173
|
|
$
|
-
|
|
$
|
15,225
|
|
$
|
633
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impaired loans with a related allowance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and residential real estate
|
$
|
24
|
|
$
|
24
|
|
$
|
-
|
|
$
|
35
|
|
$
|
1
|
Construction
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Commercial
|
|
4,399
|
|
|
4,528
|
|
|
2,351
|
|
|
7,085
|
|
|
37
|
Consumer
|
|
121
|
|
|
131
|
|
|
-
|
|
|
137
|
|
|
3
|
Other
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Total
|
$
|
4,544
|
|
$
|
4,683
|
|
$
|
2,351
|
|
$
|
7,257
|
|
$
|
41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total impaired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and residential real estate
|
$
|
7,815
|
|
$
|
8,354
|
|
$
|
-
|
|
$
|
8,906
|
|
$
|
271
|
Construction
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Commercial
|
|
11,127
|
|
|
11,782
|
|
|
2,351
|
|
|
11,072
|
|
|
346
|
Consumer
|
|
193
|
|
|
217
|
|
|
-
|
|
|
351
|
|
|
8
|
Other
|
|
1,921
|
|
|
2,503
|
|
|
-
|
|
|
2,153
|
|
|
49
|
Total impaired loans
|
$
|
21,056
|
|
$
|
22,856
|
|
$
|
2,351
|
|
$
|
22,482
|
|
$
|
674
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2017
|
|
Recorded
Investment |
|
|
Unpaid
Balance |
|
|
Related
Allowance |
|
|
Average
Recorded Investment YTD |
|
|
Interest
Income Recognized YTD |
|
|
(In thousands)
|
||||||||||||
Impaired loans with no related allowance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and residential real estate
|
$
|
9,981
|
|
$
|
10,705
|
|
$
|
-
|
|
$
|
16,166
|
|
$
|
2,052
|
Construction
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Commercial
|
|
1,006
|
|
|
1,553
|
|
|
-
|
|
|
886
|
|
|
195
|
Consumer
|
|
367
|
|
|
425
|
|
|
-
|
|
|
88
|
|
|
-
|
Other
|
|
2,233
|
|
|
2,838
|
|
|
-
|
|
|
1,066
|
|
|
62
|
Total
|
$
|
13,587
|
|
$
|
15,521
|
|
$
|
-
|
|
$
|
18,206
|
|
$
|
2,309
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impaired loans with a related allowance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and residential real estate
|
$
|
46
|
|
$
|
157
|
|
$
|
1
|
|
$
|
779
|
|
$
|
-
|
Construction
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Commercial
|
|
9,807
|
|
|
9,899
|
|
|
1,120
|
|
|
5,262
|
|
|
447
|
Consumer
|
|
180
|
|
|
214
|
|
|
1
|
|
|
329
|
|
|
18
|
Other
|
|
-
|
|
|
-
|
|
|
-
|
|
|
635
|
|
|
6
|
Total
|
$
|
10,033
|
|
$
|
10,270
|
|
$
|
1,122
|
|
$
|
7,005
|
|
$
|
471
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total impaired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and residential real estate
|
$
|
10,027
|
|
$
|
10,862
|
|
$
|
1
|
|
$
|
16,945
|
|
$
|
2,052
|
Construction
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Commercial
|
|
10,813
|
|
|
11,452
|
|
|
1,120
|
|
|
6,148
|
|
|
642
|
Consumer
|
|
547
|
|
|
639
|
|
|
1
|
|
|
417
|
|
|
18
|
Other
|
|
2,233
|
|
|
2,838
|
|
|
-
|
|
|
1,701
|
|
|
68
|
Total impaired loans
|
$
|
23,620
|
|
$
|
25,791
|
|
$
|
1,122
|
|
$
|
25,211
|
|
$
|
2,780
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2018
|
|
30-89
Days Past Due |
|
90 Days +
Past Due and Still Accruing |
|
90 Days +
Past Due and Nonaccrual |
|
Total
Nonaccrual and Past Due |
|
Total Loans,
Held for Investment |
|
|
(In thousands)
|
||||||||
Commercial and residential
|
|
|
|
|
|
|
|
|
|
|
real estate
|
$
|
7
|
$
|
-
|
$
|
304
|
$
|
311
|
$
|
2,075,012
|
Construction
|
|
-
|
|
-
|
|
-
|
|
-
|
|
125,335
|
Commercial
|
|
686
|
|
-
|
|
3,657
|
|
4,343
|
|
558,316
|
Consumer
|
|
1,523
|
|
-
|
|
83
|
|
1,606
|
|
114,348
|
Other
|
|
716
|
|
-
|
|
986
|
|
1,702
|
|
56,404
|
Total
|
$
|
2,932
|
$
|
-
|
$
|
5,030
|
$
|
7,962
|
$
|
2,929,415
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2017
|
|
30-89
Days Past Due |
|
90 Days +
Past Due and Still Accruing |
|
90 Days +
Past Due and Nonaccrual |
|
Total
Nonaccrual and Past Due |
|
Total Loans,
Held for Investment |
|
|
(In thousands)
|
||||||||
Commercial and residential
|
|
|
|
|
|
|
|
|
|
|
real estate
|
$
|
410
|
$
|
-
|
$
|
1,750
|
$
|
2,160
|
$
|
1,977,335
|
Construction
|
|
-
|
|
-
|
|
-
|
|
-
|
|
99,960
|
Commercial
|
|
1,663
|
|
-
|
|
2,079
|
|
3,742
|
|
523,330
|
Consumer
|
|
469
|
|
-
|
|
444
|
|
913
|
|
143,059
|
Other
|
|
327
|
|
-
|
|
1,281
|
|
1,608
|
|
61,979
|
Total
|
$
|
2,869
|
$
|
-
|
$
|
5,554
|
$
|
8,423
|
$
|
2,805,663
|
September 30, 2018
|
|
Commercial
& Residential Real Estate |
|
Construction
|
|
Commercial
|
|
Consumer
|
|
Other
|
|
Total
|
|
|
(In thousands)
|
||||||||||
Non-classified
|
$
|
2,065,796
|
$
|
125,305
|
$
|
547,729
|
$
|
114,145
|
$
|
52,870
|
$
|
2,905,845
|
Substandard
|
|
8,716
|
|
-
|
|
10,452
|
|
175
|
|
3,520
|
|
22,863
|
Doubtful
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Subtotal
|
|
2,074,512
|
|
125,305
|
|
558,181
|
|
114,320
|
|
56,390
|
|
2,928,708
|
Deferred costs and (fees)
|
|
500
|
|
30
|
|
135
|
|
28
|
|
14
|
|
707
|
Loans, held for investment, net
|
$
|
2,075,012
|
$
|
125,335
|
$
|
558,316
|
$
|
114,348
|
$
|
56,404
|
$
|
2,929,415
|
December 31, 2017
|
|
Commercial
& Residential Real Estate |
|
Construction
|
|
Commercial
|
|
Consumer
|
|
Other
|
|
Total
|
|
|
(In thousands)
|
||||||||||
Non-classified
|
$
|
1,964,934
|
$
|
99,965
|
$
|
513,563
|
$
|
142,512
|
$
|
57,256
|
$
|
2,778,230
|
Substandard
|
|
12,497
|
|
-
|
|
9,792
|
|
554
|
|
4,726
|
|
27,569
|
Doubtful
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Subtotal
|
|
1,977,431
|
|
99,965
|
|
523,355
|
|
143,066
|
|
61,982
|
|
2,805,799
|
Deferred (fees) and costs
|
|
(96)
|
|
(5)
|
|
(25)
|
|
(7)
|
|
(3)
|
|
(136)
|
Loans, held for investment, net
|
$
|
1,977,335
|
$
|
99,960
|
$
|
523,330
|
$
|
143,059
|
$
|
61,979
|
$
|
2,805,663
|
(5)
|
Goodwill and Other Intangible Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
December 31,
|
|
Useful Life
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|||
Core deposit intangible assets
|
10 - 15 years
|
|
$
|
75,956
|
|
$
|
75,956
|
Core deposit intangible assets accumulated amortization
|
|
|
|
(66,900)
|
|
|
(65,272)
|
Core deposit intangible assets, net
|
|
|
|
9,056
|
|
|
10,684
|
|
|
|
|
|
|
|
|
Customer relationship intangible assets
|
10 - 13 years
|
|
$
|
9,764
|
|
$
|
6,243
|
Customer relationship intangible assets accumulated amortization
|
|
|
|
(3,493)
|
|
|
(2,486)
|
Customer relationship intangible assets, net
|
|
|
|
6,271
|
|
|
3,757
|
|
|
|
|
|
|
|
|
Non-compete agreements intangible asset
|
3 years
|
|
$
|
640
|
|
$
|
-
|
Non-compete agreements intangible asset accumulated amortization
|
|
|
|
(153)
|
|
|
-
|
Non-compete agreements intangible asset, net
|
|
|
|
487
|
|
|
-
|
|
|
|
|
|
|
|
|
Total other intangible assets, net
|
|
|
$
|
15,814
|
|
$
|
14,441
|
(6)
|
Borrowings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
|
Interest Rate
|
Maturity
Date |
|
Total
Committed |
|
|
(Dollars in thousands)
|
||||
September 30, 2018
|
|
|
|
|
|
|
Short-term borrowings:
|
|
|
|
|
|
|
American Financial Exchange
|
$
|
-
|
2.35%
|
overnight
|
$
|
64,000
|
Bankers' Bank of the West
|
|
-
|
2.70%
|
overnight
|
|
10,000
|
Federal Reserve Bank
|
|
-
|
2.75%
|
overnight
|
|
821
|
U.S. Bank
|
|
-
|
2.75%
|
overnight
|
|
5,750
|
Wells Fargo
|
|
-
|
2.42%
|
overnight
|
|
10,000
|
Wells Fargo - Holding Company LOC
|
|
-
|
5.50%
|
overnight
|
|
10,000
|
Zions
|
|
-
|
2.39%
|
overnight
|
|
25,000
|
FHLB line of credit
|
|
183,060
|
2.35%
|
overnight
|
|
738,536
|
Total short-term borrowings
|
$
|
183,060
|
|
|
|
|
|
|
|
|
|
|
|
Long-term borrowings:
|
|
|
|
|
|
|
FHLB term notes (variable rate)
|
$
|
25,000
|
2.28%
|
March 7, 2019
|
|
738,536
|
FHLB term notes (variable rate)
|
|
25,000
|
2.33%
|
August 2, 2019
|
|
738,536
|
Total long-term borrowings
|
$
|
50,000
|
|
|
|
|
|
|
|
|
|
|
|
Total borrowings
|
$
|
233,060
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2017
|
|
|
|
|
|
|
Short-term borrowings:
|
|
|
|
|
|
|
Bankers' Bank of the West
|
$
|
-
|
2.00%
|
overnight
|
$
|
10,000
|
Federal Reserve Bank
|
|
-
|
2.00%
|
overnight
|
|
1,650
|
U.S. Bank
|
|
-
|
2.00%
|
overnight
|
|
5,750
|
Wells Fargo
|
|
-
|
1.85%
|
overnight
|
|
10,000
|
Wells Fargo - Holding Company LOC
|
|
-
|
4.75%
|
overnight
|
|
10,000
|
Zions
|
|
-
|
1.64%
|
overnight
|
|
25,000
|
FHLB line of credit
|
|
157,444
|
1.47%
|
overnight
|
|
706,251
|
Total short-term borrowings
|
$
|
157,444
|
|
|
|
|
|
|
|
|
|
|
|
Long-term borrowings:
|
|
|
|
|
|
|
FHLB term notes (fixed rate)
|
$
|
20,000
|
2.52%
|
January 23, 2018
|
|
706,251
|
FHLB term notes (variable rate)
|
|
25,000
|
1.48%
|
March 7, 2018
|
|
706,251
|
FHLB term notes (variable rate)
|
|
25,000
|
1.45%
|
August 3, 2018
|
|
706,251
|
Total long-term borrowings
|
$
|
70,000
|
|
|
|
|
|
|
|
|
|
|
|
Total borrowings
|
$
|
227,444
|
|
|
|
|
(7)
|
Subordinated Debentures and Trust Preferred Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Date Issued
|
|
Amount
|
Maturity Date
|
Call
Date * |
Fixed or
Variable |
Rate
Adjuster |
|
Current
Rate |
|
Next Rate
Reset Date** |
|
|
|
|
|
|
|
|
|
|
|
|
CenBank Trust III
|
4/8/2004
|
|
15,464
|
4/15/2034
|
1/15/2019
|
Variable
|
LIBOR + 2.65
|
%
|
4.99
|
%
|
1/15/2019
|
Guaranty Capital Trust III
|
6/30/2003
|
|
10,310
|
7/7/2033
|
1/7/2019
|
Variable
|
LIBOR + 3.10
|
%
|
5.44
|
%
|
1/7/2019
|
Subordinated Note
|
7/18/2016
|
|
40,000
|
7/20/2026
|
N/A
|
Fixed
|
LIBOR + 4.73
|
%
|
5.75
|
%
|
7/20/2021
|
(8)
|
Commitments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2018 |
|
|
December 31,
2017 |
|
|
|
|
|
|
|
|
(In thousands)
|
|||
Commitments to extend credit:
|
|
|
|
|
|
Variable
|
$
|
499,399
|
|
$
|
508,186
|
Fixed
|
|
92,041
|
|
|
116,026
|
Total commitments to extend credit
|
$
|
591,440
|
|
$
|
624,212
|
|
|
|
|
|
|
Standby letters of credit
|
$
|
11,192
|
|
$
|
12,398
|
(9)
|
Fair Value Measurements and Fair Value of Financial Instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
|
Significant
Other Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
|
Balance
|
|
|
(In thousands)
|
||||||
Assets/(Liabilities) at September 30, 2018
|
|
|
|
|
|
|
|
|
State and municipal securities
|
$
|
-
|
$
|
71,004
|
$
|
7,090
|
$
|
78,094
|
Mortgage-backed securities – agency /
|
|
|
|
|
|
|
|
|
residential
|
|
-
|
|
156,476
|
|
-
|
|
156,476
|
Corporate securities
|
|
-
|
|
95,196
|
|
-
|
|
95,196
|
Collateralized loan obligations
|
|
-
|
|
5,259
|
|
-
|
|
5,259
|
Interest rate swap - cash flow hedge
|
|
-
|
|
176
|
|
-
|
|
176
|
Interest rate swap - cash flow hedge
|
|
-
|
|
(115)
|
|
-
|
|
(115)
|
|
|
|
|
|
|
|
|
|
Assets/(Liabilities) at December 31, 2017
|
|
|
|
|
|
|
|
|
State and municipal securities
|
$
|
-
|
$
|
75,162
|
$
|
7,324
|
$
|
82,486
|
Mortgage-backed securities – agency /
|
|
|
|
|
|
|
|
|
residential
|
|
-
|
|
131,180
|
|
-
|
|
131,180
|
Corporate securities
|
|
-
|
|
103,512
|
|
-
|
|
103,512
|
Collateralized loan obligations
|
|
-
|
|
12,799
|
|
-
|
|
12,799
|
Interest rate swaps - cash flow hedge
|
|
-
|
|
(1,010)
|
|
-
|
|
(1,010)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State and Municipal Securities
|
|||
|
|
Three Months Ended
September 30, 2018 |
|
|
Nine Months Ended
September 30, 2018 |
|
|
|
|
|
|
|
|
(In thousands)
|
|||
Beginning balance
|
$
|
7,169
|
|
$
|
7,324
|
Total unrealized gains (losses) included in:
|
|
|
|
|
|
Net income
|
|
1
|
|
|
7
|
Other comprehensive income (loss)
|
|
-
|
|
|
-
|
Sales, calls and prepayments
|
|
(80)
|
|
|
(241)
|
Transfers in and (out) of Level 3
|
|
-
|
|
|
-
|
Balance September 30, 2018
|
$
|
7,090
|
|
$
|
7,090
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State and Municipal Securities
|
|||
|
|
Three Months Ended
September 30, 2017 |
|
|
Nine Months Ended
September 30, 2017 |
|
|
|
|
|
|
|
|
(In thousands)
|
|||
Beginning balance
|
$
|
31,595
|
|
$
|
31,752
|
Total unrealized gains (losses) included in:
|
|
|
|
|
|
Net income
|
|
1
|
|
|
5
|
Other comprehensive income (loss)
|
|
-
|
|
|
-
|
Sales, calls and prepayments
|
|
(24,195)
|
|
|
(24,356)
|
Transfers in and (out) of Level 3
|
|
-
|
|
|
-
|
Balance September 30, 2017
|
$
|
7,401
|
|
$
|
7,401
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2018
|
|
Fair Value
|
Valuation Technique
|
Unobservable Inputs
|
Range
|
|
|
(In thousands)
|
|||
State and municipal securities
|
$
|
7,090
|
discounted cash flow
|
discount rate
|
2.90%-3.40%
|
Total
|
$
|
7,090
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2017
|
|
Fair Value
|
Valuation Technique
|
Unobservable Inputs
|
Range
|
|
|
(In thousands)
|
|||
State and municipal securities
|
$
|
7,324
|
discounted cash flow
|
discount rate
|
2.50%-3.00%
|
Total
|
$
|
7,324
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements at September 30, 2018:
|
||||||
|
|
Carrying Amount
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
|
(In thousands)
|
||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
39,188
|
$
|
39,188
|
$
|
-
|
$
|
-
|
$
|
39,188
|
Time deposits with banks
|
|
254
|
|
254
|
|
-
|
|
-
|
|
254
|
Securities available for sale
|
|
335,025
|
|
-
|
|
327,935
|
|
7,090
|
|
335,025
|
Securities held to maturity
|
|
251,188
|
|
-
|
|
239,215
|
|
2,421
|
|
241,636
|
Bank stocks
|
|
26,021
|
|
n/a
|
|
n/a
|
|
n/a
|
|
n/a
|
Loans held for sale
|
|
2,228
|
|
2,451
|
|
-
|
|
-
|
|
2,451
|
Loans held for investment, net
|
|
2,905,665
|
|
-
|
|
-
|
|
2,814,414
|
|
2,814,414
|
Accrued interest receivable
|
|
13,091
|
|
-
|
|
13,091
|
|
-
|
|
13,091
|
Interest rate swap - cash flow hedge
|
|
176
|
|
-
|
|
176
|
|
-
|
|
176
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
$
|
3,059,947
|
$
|
-
|
$
|
3,054,183
|
$
|
-
|
$
|
3,054,183
|
Federal funds purchased and sold under
|
|
|
|
|
|
|
|
|
|
|
agreements to repurchase
|
|
8,622
|
|
-
|
|
8,622
|
|
-
|
|
8,622
|
Short-term borrowings
|
|
183,060
|
|
-
|
|
183,060
|
|
-
|
|
183,060
|
Subordinated debentures
|
|
65,127
|
|
-
|
|
-
|
|
63,001
|
|
63,001
|
Long-term borrowings
|
|
50,000
|
|
-
|
|
49,859
|
|
-
|
|
49,859
|
Accrued interest payable
|
|
1,751
|
|
-
|
|
1,751
|
|
-
|
|
1,751
|
Interest rate swap - cash flow hedge
|
|
115
|
|
-
|
|
115
|
|
-
|
|
115
|
(a)
|
Cash and Cash Equivalents
|
(b)
|
Securities and Bank Stocks
|
(c)
|
Loans Held for Investment
|
(d)
|
Loans Held for Sale
|
(e)
|
Deposits
|
(f)
|
Short-term Borrowings
|
(g)
|
Long-term Borrowings
|
(h)
|
Subordinated Debentures
|
(i)
|
Accrued Interest Receivable/Payable
|
(j)
|
Interest Rate Swaps
|
(k)
|
Off-balance Sheet Instruments
|
(10)
|
Derivatives and Hedging Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
|
|
|
Fair Value
|
|||
|
Sheet
|
|
|
September 30,
|
|
|
December 31,
|
|
Location
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|||
Derivatives designated as hedging instruments
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
Interest rate swaps
|
Other assets
|
|
$
|
176
|
|
$
|
-
|
Liabilities:
|
|
|
|
|
|
|
|
Interest rate swaps
|
Other liabilities
|
|
$
|
115
|
|
$
|
1,010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2018 |
|
|
|
December 31,
2017 |
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands)
|
|
||||
Notional amounts
|
$
|
50,000
|
|
|
$
|
50,000
|
|
Weighted average pay rates
|
|
2.73
|
%
|
|
|
2.73
|
%
|
Weighted average receive rates
|
|
3 month LIBOR
|
|
|
|
3 month LIBOR
|
|
Weighted average maturity
|
|
2.1 years
|
|
|
|
2.9 years
|
|
Unrealized gains (losses), net
|
$
|
61
|
|
|
$
|
(1,010)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
||||
Interest Rate Swaps with
|
Statement
|
|
|
September 30,
|
|
|
September 30,
|
||||
Hedge Designation
|
Location
|
|
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|||||||
Gain or (loss) recognized in OCI on
|
|
|
|
|
|
|
|
|
|
|
|
derivative - net of tax
|
Not applicable
|
|
$
|
76
|
$
|
20
|
|
$
|
609
|
$
|
(116)
|
(Gain) or loss reclassified from
|
|
|
|
|
|
|
|
|
|
|
|
accumulated OCI into income
|
|
|
|
|
|
|
|
|
|
|
|
(effective portion) - net of tax
|
Interest expense
|
|
|
39
|
|
118
|
|
|
198
|
|
378
|
(11)
|
Accumulated Other Comprehensive Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized
Gains and Losses on Available for Sale Securities |
|
|
Unrealized
Gains and Losses on Held to Maturity Securities |
|
|
Unrealized
Gains and Losses on Cash Flow Hedges |
|
|
Total
|
|
|
(In thousands)
|
|||||||||
Balance, July 1, 2017
|
$
|
(2,575)
|
|
$
|
(1,526)
|
|
$
|
(1,011)
|
|
$
|
(5,112)
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
before reclassifications, net of tax
|
|
56
|
|
|
-
|
|
|
20
|
|
|
76
|
Net unrealized losses on securities transferred
|
|
|
|
|
|
|
|
|
|
|
|
from available for sale, to held to maturity
|
|
|
|
|
|
|
|
|
|
|
|
net of tax
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Amounts reclassified from accumulated
|
|
|
|
|
|
|
|
|
|
|
|
other comprehensive income (loss), net of tax
|
|
53
|
|
|
74
|
|
|
118
|
|
|
245
|
Net other comprehensive income (loss)
|
|
109
|
|
|
74
|
|
|
138
|
|
|
321
|
Balance, September 30, 2017
|
$
|
(2,466)
|
|
$
|
(1,452)
|
|
$
|
(873)
|
|
$
|
(4,791)
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, January 1, 2017
|
$
|
(3,913)
|
|
$
|
(1,678)
|
|
$
|
(1,135)
|
|
$
|
(6,726)
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
before reclassifications, net of tax
|
|
1,394
|
|
|
-
|
|
|
(116)
|
|
|
1,278
|
Net unrealized losses on securities transferred
|
|
|
|
|
|
|
|
|
|
|
|
from available for sale, to held to maturity
|
|
|
|
|
|
|
|
|
|
|
|
net of tax
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Amounts reclassified from accumulated
|
|
|
|
|
|
|
|
|
|
|
|
other comprehensive income (loss), net of tax
|
|
53
|
|
|
226
|
|
|
378
|
|
|
657
|
Net other comprehensive income (loss)
|
|
1,447
|
|
|
226
|
|
|
262
|
|
|
1,935
|
Balance, September 30, 2017
|
$
|
(2,466)
|
|
$
|
(1,452)
|
|
$
|
(873)
|
|
$
|
(4,791)
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, July 1, 2018
|
$
|
(8,249)
|
|
$
|
(1,514)
|
|
$
|
6
|
|
$
|
(9,757)
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
before reclassifications, net of tax
|
|
(1,952)
|
|
|
-
|
|
|
76
|
|
|
(1,876)
|
Net unrealized losses on securities transferred
|
|
|
|
|
|
|
|
|
|
|
|
from available for sale, to held to maturity
|
|
|
|
|
|
|
|
|
|
|
|
net of tax
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Amounts reclassified from accumulated
|
|
|
|
|
|
|
|
|
|
|
|
other comprehensive income (loss), net of tax
|
|
-
|
|
|
77
|
|
|
39
|
|
|
116
|
Net other comprehensive income (loss)
|
|
(1,952)
|
|
|
77
|
|
|
115
|
|
|
(1,760)
|
Balance, September 30, 2018
|
$
|
(10,201)
|
|
$
|
(1,437)
|
|
$
|
121
|
|
$
|
(11,517)
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, January 1, 2018
|
$
|
(2,751)
|
|
$
|
(1,377)
|
|
$
|
(566)
|
|
$
|
(4,694)
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
before reclassifications, net of tax
|
|
(6,845)
|
|
|
-
|
|
|
609
|
|
|
(6,236)
|
Net unrealized losses on securities transferred
|
|
|
|
|
|
|
|
|
|
|
|
from available for sale, to held to maturity
|
|
|
|
|
|
|
|
|
|
|
|
net of tax
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Amounts reclassified from accumulated
|
|
|
|
|
|
|
|
|
|
|
|
other comprehensive income (loss), net of tax
|
|
(12)
|
|
|
238
|
|
|
198
|
|
|
424
|
Net other comprehensive income (loss)
|
|
(6,857)
|
|
|
238
|
|
|
807
|
|
|
(5,812)
|
Reclassification of stranded tax effect
|
|
(593)
|
|
|
(298)
|
|
|
(120)
|
|
|
(1,011)
|
Balance, September 30, 2018
|
$
|
(10,201)
|
|
$
|
(1,437)
|
|
$
|
121
|
|
$
|
(11,517)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Details about
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Affected Income Statement
|
AOCI Components
|
|
|
Amount Reclassified from AOCI
|
|
Line Item
|
|||||||||
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
||||||
|
|
|
September 30,
|
|
|
September 30,
|
|
|
||||||
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
(In thousands)
|
|
|
|||||||||
Unrealized gains and losses on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
available for sale securities
|
|
$
|
-
|
|
$
|
86
|
|
$
|
(16)
|
|
$
|
86
|
|
(Gain) loss on the sale of securities
|
|
|
|
-
|
|
|
(33)
|
|
|
4
|
|
|
(33)
|
|
Income tax effect
|
|
|
$
|
-
|
|
$
|
53
|
|
$
|
(12)
|
|
$
|
53
|
|
Net income
|
Unrealized gains and losses on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
held to maturity securities
|
|
$
|
102
|
|
$
|
120
|
|
$
|
316
|
|
$
|
365
|
|
Interest income
|
|
|
|
(25)
|
|
|
(46)
|
|
|
(78)
|
|
|
(139)
|
|
Income tax effect
|
|
|
$
|
77
|
|
$
|
74
|
|
$
|
238
|
|
$
|
226
|
|
Net income
|
Unrealized gains and losses on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
cash flow hedges
|
|
$
|
52
|
|
$
|
190
|
|
$
|
263
|
|
$
|
609
|
|
Interest expense
|
|
|
|
(13)
|
|
|
(72)
|
|
|
(65)
|
|
|
(231)
|
|
Income tax effect
|
|
|
$
|
39
|
|
$
|
118
|
|
$
|
198
|
|
$
|
378
|
|
Net income
|
Total reclassifications
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
for the period
|
|
$
|
116
|
|
$
|
245
|
|
$
|
424
|
|
$
|
657
|
|
Net income
|
(12)
|
Stock-Based Compensation
|
|
|
|
|
|
|
|
|
|
Shares
|
|
Weighted Average Fair
Value on Award Date |
Unearned at January 1, 2018
|
434,149
|
$
|
17.05
|
Awarded
|
135,038
|
|
27.95
|
Forfeited
|
(13,194)
|
|
23.95
|
Vested
|
(125,492)
|
|
16.44
|
Unearned at September 30, 2018
|
430,501
|
$
|
20.44
|
(13)
|
Capital Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio at
September 30, 2018 |
|
Ratio at
December 31, 2017 |
|
|
Minimum Requirement
for “Adequately Capitalized” Institution plus fully phased in Capital Conservation Buffer |
|
Minimum
Requirement for "Well-Capitalized" Institution |
|
Common Equity Tier 1 Risk-Based
|
|
|
|
|
|
|
|
|
|
Capital Ratio
|
|
|
|
|
|
|
|
|
|
Consolidated
|
10.98
|
%
|
10.57
|
%
|
|
7.00
|
%
|
N/A
|
|
Guaranty Bank and Trust Company
|
12.46
|
%
|
12.29
|
%
|
|
7.00
|
%
|
6.50
|
%
|
|
|
|
|
|
|
|
|
|
|
Tier 1 Risk-Based Capital Ratio
|
|
|
|
|
|
|
|
|
|
Consolidated
|
11.75
|
%
|
11.36
|
%
|
|
8.50
|
%
|
N/A
|
|
Guaranty Bank and Trust Company
|
12.46
|
%
|
12.29
|
%
|
|
8.50
|
%
|
8.00
|
%
|
|
|
|
|
|
|
|
|
|
|
Total Risk-Based Capital Ratio
|
|
|
|
|
|
|
|
|
|
Consolidated
|
13.71
|
%
|
13.36
|
%
|
|
10.50
|
%
|
N/A
|
|
Guaranty Bank and Trust Company
|
13.20
|
%
|
13.03
|
%
|
|
10.50
|
%
|
10.00
|
%
|
|
|
|
|
|
|
|
|
|
|
Leverage Ratio
|
|
|
|
|
|
|
|
|
|
Consolidated
|
10.46
|
%
|
10.21
|
%
|
|
4.00
|
%
|
N/A
|
|
Guaranty Bank and Trust Company
|
11.10
|
%
|
11.05
|
%
|
|
4.00
|
%
|
5.00
|
%
|
(14)
|
Revenue
|
A.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
||||||
|
Income Statement
Location |
|
|
September 30,
2018 |
|
|
September 30,
2017 |
|
|
September 30,
2018 |
|
|
September 30,
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|||||||||
Overdraft related
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income
|
Deposit service and other fees
|
|
$
|
836
|
|
$
|
875
|
|
$
|
2,482
|
|
$
|
2,603
|
Deposit service income
|
Deposit service and other fees
|
|
|
170
|
|
|
155
|
|
|
541
|
|
|
461
|
Analysis income
|
Deposit service and other fees
|
|
|
510
|
|
|
527
|
|
|
1,458
|
|
|
1,519
|
Wire fee income
|
Deposit service and other fees
|
|
|
88
|
|
|
59
|
|
|
253
|
|
|
168
|
Interchange income
|
Deposit service and other fees
|
|
|
1,798
|
|
|
1,688
|
|
|
5,161
|
|
|
4,919
|
Safe deposit box rental
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income
|
Deposit service and other fees
|
|
|
57
|
|
|
54
|
|
|
180
|
|
|
176
|
Other fee income
|
Deposit service and other fees
|
|
|
54
|
|
|
126
|
|
|
160
|
|
|
216
|
Subtotal
|
|
|
$
|
3,513
|
|
$
|
3,484
|
|
$
|
10,235
|
|
$
|
10,062
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust fee income
|
Investment management and trust
|
|
$
|
784
|
|
$
|
567
|
|
$
|
1,922
|
|
$
|
1,691
|
Investment advisory
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income
|
Investment management and trust
|
|
|
1,966
|
|
|
911
|
|
|
5,592
|
|
|
2,791
|
Subtotal
|
|
|
$
|
2,750
|
|
$
|
1,478
|
|
$
|
7,514
|
|
$
|
4,482
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on sale of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
assets
|
Other noninterest income
|
|
$
|
681
|
|
$
|
2
|
|
$
|
954
|
|
$
|
259
|
Other
|
Other noninterest income
|
|
|
112
|
|
|
200
|
|
|
359
|
|
|
420
|
Subtotal
|
|
|
$
|
793
|
|
$
|
202
|
|
$
|
1,313
|
|
$
|
679
|
|
September 30, 2018
|
||||||||||||||
|
Independent
Historical
|
|
Guaranty
Historical
|
|
Pro Forma Adjustments
|
|
Pro Forma
Combined |
||||||||
(in thousands)
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
290,170
|
|
|
$
|
39,188
|
|
|
$
|
—
|
|
|
$
|
329,358
|
|
Certificates of deposit held in other banks
|
1,225
|
|
|
254
|
|
|
—
|
|
|
1,479
|
|
||||
Securities available for sale
|
760,995
|
|
|
335,025
|
|
|
—
|
|
|
1,096,020
|
|
||||
Securities held to maturity
|
—
|
|
|
251,188
|
|
|
(9,953
|
)
|
(a)
|
241,235
|
|
||||
Loans held for sale
|
27,730
|
|
|
2,228
|
|
|
—
|
|
|
29,958
|
|
||||
Loans (gross)
|
7,701,155
|
|
|
2,929,415
|
|
|
(117,151
|
)
|
(b)
|
10,513,419
|
|
||||
Allowance for loan losses
|
(42,166
|
)
|
|
(23,750
|
)
|
|
23,750
|
|
(c)
|
(42,166
|
)
|
||||
Premises and equipment, net
|
156,320
|
|
|
63,030
|
|
|
6,471
|
|
(d)
|
225,821
|
|
||||
Other real estate
|
4,610
|
|
|
596
|
|
|
—
|
|
|
5,206
|
|
||||
Goodwill
|
721,784
|
|
|
67,917
|
|
|
213,749
|
|
(e)
|
1,003,450
|
|
||||
Other intangible assets, net
|
46,533
|
|
|
15,814
|
|
|
55,938
|
|
(f)
|
118,285
|
|
||||
Deferred tax asset
|
14,565
|
|
|
3,586
|
|
|
9,122
|
|
(g)
|
27,273
|
|
||||
Other assets
|
208,543
|
|
|
126,036
|
|
|
—
|
|
|
334,579
|
|
||||
Total Assets
|
$
|
9,891,464
|
|
|
$
|
3,810,527
|
|
|
$
|
181,926
|
|
|
$
|
13,883,917
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
||||||||
Deposits:
|
|
|
|
|
|
|
|
||||||||
Noninterest bearing
|
$
|
2,235,377
|
|
|
$
|
960,931
|
|
|
$
|
—
|
|
|
$
|
3,196,308
|
|
Interest bearing
|
5,547,475
|
|
|
2,099,016
|
|
|
—
|
|
|
7,646,491
|
|
||||
Total deposits
|
7,782,852
|
|
|
3,059,947
|
|
|
—
|
|
|
10,842,799
|
|
||||
FHLB advances
|
345,000
|
|
|
233,060
|
|
|
—
|
|
|
578,060
|
|
||||
Repurchase agreements
|
—
|
|
|
8,622
|
|
|
—
|
|
|
8,622
|
|
||||
Other borrowings
|
137,207
|
|
|
39,353
|
|
|
—
|
|
|
176,560
|
|
||||
Junior subordinated debentures
|
27,803
|
|
|
25,774
|
|
|
—
|
|
|
53,577
|
|
||||
Other liabilities
|
31,418
|
|
|
15,532
|
|
|
14,457
|
|
(h)
|
61,407
|
|
||||
Total Liabilities
|
8,324,280
|
|
|
3,382,288
|
|
|
14,457
|
|
|
11,721,025
|
|
||||
Stockholders’ equity:
|
|
|
|
|
|
|
|
||||||||
Total Stockholders’ Equity
|
1,567,184
|
|
|
428,239
|
|
|
167,469
|
|
(i)(j)
|
2,162,892
|
|
||||
Total Liabilities and Stockholders’ Equity
|
$
|
9,891,464
|
|
|
$
|
3,810,527
|
|
|
$
|
181,926
|
|
|
$
|
13,883,917
|
|
|
|
|
|
|
|
|
|
Summary of Independent common stock issued for merger consideration:
|
|
|
||||
Guaranty common shares outstanding of 29,132,222 immediately prior to Effective Time at exchange ratio of 0.45 (excluding Guaranty 2015 RSAs and fractional shares)
|
|
13,109,500
|
|
|||
Guaranty 2015 RSAs outstanding of 155,852, immediately prior to Effective Time, replaced with the Company's restricted stock awards at exchange ratio of 0.45 with fractional shares rounded up
(1)
|
|
70,248
|
|
|||
Aggregate shares of Company stock issued to Guaranty shareholders
|
|
13,179,748
|
|
|||
|
|
|
||||
Summary of Merger Consideration and purchase price allocation:
|
|
|
||||
Stock consideration issued to Guaranty shareholders based upon Independent Bank price of $45.77 as of Effective Time
|
|
$
|
600,022
|
|
||
Consideration attributable to restricted stock replacement awards pre-Merger services
(1)
|
|
1,850
|
|
|||
Consideration paid in cash to Guaranty shareholders in lieu of fractional shares
|
|
9
|
|
|||
Total estimated merger consideration as of Effective Time used for pro forma purchase price
|
|
$
|
601,881
|
|
||
|
|
|
||||
Assets of acquired bank:
(2)
|
|
|
||||
Cash and cash equivalents
|
$
|
39,188
|
|
|
||
Certificates of deposit held in other banks
|
254
|
|
|
|||
Securities
|
576,260
|
|
|
|||
Loans
|
2,814,492
|
|
|
|||
Premises and equipment
|
69,501
|
|
|
|||
Core deposit and customer relationship intangibles
|
71,752
|
|
|
|||
Other real estate
|
596
|
|
|
|||
Deferred tax asset
|
12,708
|
|
|
|||
Other assets
|
126,036
|
|
|
|||
Total assets acquired
|
3,710,787
|
|
|
|||
|
|
|
||||
Liabilities of acquired bank:
|
|
|
||||
Deposits
|
3,059,947
|
|
|
|||
FHLB advances
|
233,060
|
|
|
|||
Subordinated debentures
|
65,127
|
|
|
|||
Other liabilities
|
32,438
|
|
|
|||
Total liabilities assumed
|
3,390,572
|
|
|
|||
|
|
|
||||
Net assets acquired
|
|
320,215
|
|
|||
Preliminary Pro Forma Goodwill
|
|
|
$281,666
|
|
||
|
|
|
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||
(in thousands, except per share data)
|
|
Independent Historical
|
|
Guaranty Historical
|
|
Pro Forma Adjustments
|
|
Pro Forma
Combined |
||||||||
Interest income
|
|
|
|
|
|
|
|
|
||||||||
Interest & fees on loans
|
|
$
|
277,993
|
|
|
$
|
99,489
|
|
|
$
|
16,667
|
|
(a)
|
$
|
394,149
|
|
Interest on securities
|
|
13,719
|
|
|
11,422
|
|
|
3,314
|
|
(b)
|
28,455
|
|
||||
Interest on other
|
|
2,773
|
|
|
1,303
|
|
|
—
|
|
|
4,076
|
|
||||
Total interest income
|
|
294,485
|
|
|
112,214
|
|
|
19,981
|
|
|
426,680
|
|
||||
Interest expense
|
|
|
|
|
|
|
|
|
||||||||
Interest on deposits
|
|
40,006
|
|
|
8,234
|
|
|
—
|
|
|
48,240
|
|
||||
Interest on other borrowings
|
|
15,335
|
|
|
6,219
|
|
|
—
|
|
|
21,554
|
|
||||
Total interest expense
|
|
55,341
|
|
|
14,453
|
|
|
—
|
|
|
69,794
|
|
||||
Net interest income
|
|
239,144
|
|
|
97,761
|
|
|
19,981
|
|
|
356,886
|
|
||||
Provision for loan losses
|
|
6,950
|
|
|
924
|
|
|
—
|
|
|
7,874
|
|
||||
Net interest income after provision
|
|
232,194
|
|
|
96,837
|
|
|
19,981
|
|
|
349,012
|
|
||||
Noninterest income
|
|
|
|
|
|
|
|
|
||||||||
Service charges
|
|
10,607
|
|
|
10,538
|
|
|
—
|
|
|
21,145
|
|
||||
Investment management and trust
|
|
—
|
|
|
7,514
|
|
|
—
|
|
|
7,514
|
|
||||
Mortgage banking revenue
|
|
12,134
|
|
|
—
|
|
|
—
|
|
|
12,134
|
|
||||
Gain (loss) on sales of assets, net
|
|
(13
|
)
|
|
932
|
|
|
—
|
|
|
919
|
|
||||
Other
|
|
9,609
|
|
|
3,613
|
|
|
—
|
|
|
13,222
|
|
||||
Total noninterest income
|
|
32,337
|
|
|
22,597
|
|
|
—
|
|
|
54,934
|
|
||||
Noninterest expense
|
|
|
|
|
|
|
|
|
||||||||
Salaries & employee benefits
|
|
82,072
|
|
|
38,391
|
|
|
—
|
|
|
120,463
|
|
||||
Occupancy
|
|
18,295
|
|
|
8,186
|
|
|
—
|
|
|
26,481
|
|
||||
Merger Expenses
|
|
5,671
|
|
|
1,508
|
|
|
(2,558
|
)
|
(c)
|
4,621
|
|
||||
Other
|
|
40,733
|
|
|
18,142
|
|
|
4,196
|
|
(d)
|
63,071
|
|
||||
Total noninterest expense
|
|
146,771
|
|
|
66,227
|
|
|
1,638
|
|
|
214,636
|
|
||||
Income before taxes
|
|
117,760
|
|
|
53,207
|
|
|
18,343
|
|
|
189,310
|
|
||||
Income tax expense
|
|
23,465
|
|
|
11,443
|
|
|
4,087
|
|
(e)
|
38,995
|
|
||||
Net income
|
|
$
|
94,295
|
|
|
$
|
41,764
|
|
|
$
|
14,256
|
|
|
$
|
150,315
|
|
|
|
|
|
|
|
|
|
|
||||||||
Pro Forma Combined Per Share Data (Common Stock)
(1)
|
|
|
|
|
|
|
||||||||||
Earnings:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
3.22
|
|
|
$
|
1.45
|
|
|
|
|
$
|
3.45
|
|
||
Diluted
(2)
|
|
$
|
3.21
|
|
|
$
|
1.44
|
|
|
|
|
$
|
3.44
|
|
||
Weighted average shares outstanding:
(2)
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
29,294,493
|
|
|
28,851,952
|
|
|
|
|
42,474,241
|
|
|||||
Diluted
|
|
29,385,785
|
|
|
29,083,965
|
|
|
|
|
42,565,533
|
|
|
Year Ended December 31, 2017
|
||||||||||||||||||||||
|
Independent
|
|
Carlile Bancshares
|
|
Guaranty
|
|
Pro Forma
|
||||||||||||||||
(in thousands, except per share data)
|
12/31/2017
Historical |
|
3/31/2017
Historical |
|
Pro Forma Adjustments
|
|
12/31/2017
Historical |
|
Pro Forma
Adjustments |
|
12/31/2017
Combined |
||||||||||||
Interest income
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest & fees on loans
|
$
|
290,357
|
|
|
$
|
17,846
|
|
|
$
|
1,150
|
|
(a)
|
$
|
118,674
|
|
|
$
|
22,222
|
|
(e)
|
$
|
450,249
|
|
Interest on securities
|
12,106
|
|
|
1,797
|
|
|
—
|
|
|
14,197
|
|
|
4,418
|
|
(f)
|
32,518
|
|
||||||
Interest on other
|
5,451
|
|
|
334
|
|
|
—
|
|
|
1,431
|
|
|
|
|
7,216
|
|
|||||||
Total interest income
|
307,914
|
|
|
19,977
|
|
|
1,150
|
|
|
134,302
|
|
|
26,640
|
|
|
489,983
|
|
||||||
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest on deposits
|
28,518
|
|
|
1,115
|
|
|
—
|
|
|
7,344
|
|
|
—
|
|
|
36,977
|
|
||||||
Interest on other borrowings
|
13,918
|
|
|
213
|
|
|
40
|
|
(b)
|
6,159
|
|
|
—
|
|
|
20,330
|
|
||||||
Total interest expense
|
42,436
|
|
|
1,328
|
|
|
40
|
|
|
13,503
|
|
|
|
|
57,307
|
|
|||||||
Net interest income
|
265,478
|
|
|
18,649
|
|
|
1,110
|
|
|
120,799
|
|
|
26,640
|
|
|
432,676
|
|
||||||
Provision for loan losses
|
8,265
|
|
|
338
|
|
|
—
|
|
|
992
|
|
|
—
|
|
|
9,595
|
|
||||||
Net interest income after provision
|
257,213
|
|
|
18,311
|
|
|
1,110
|
|
|
119,807
|
|
|
10,456
|
|
|
406,897
|
|
||||||
Noninterest income
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service charges
|
12,955
|
|
|
1,023
|
|
|
—
|
|
|
13,951
|
|
|
—
|
|
|
27,929
|
|
||||||
Investment Management and Trust
|
—
|
|
|
—
|
|
|
—
|
|
|
6,005
|
|
|
—
|
|
|
6,005
|
|
||||||
Mortgage fee income
|
13,755
|
|
|
2,525
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,280
|
|
||||||
Gain on sale of assets
|
4,242
|
|
|
194
|
|
|
—
|
|
|
1,250
|
|
|
—
|
|
|
5,686
|
|
||||||
Other
|
10,335
|
|
|
3,136
|
|
|
—
|
|
|
4,238
|
|
|
—
|
|
|
17,709
|
|
||||||
Total noninterest income
|
41,287
|
|
|
6,878
|
|
|
—
|
|
|
25,444
|
|
|
—
|
|
|
73,609
|
|
||||||
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Salaries & employee benefits
|
95,741
|
|
|
12,398
|
|
|
—
|
|
|
46,762
|
|
|
—
|
|
|
154,901
|
|
||||||
Occupancy
|
22,079
|
|
|
2,273
|
|
|
—
|
|
|
10,562
|
|
|
—
|
|
|
34,914
|
|
||||||
Merger Expenses
|
12,898
|
|
|
155
|
|
|
—
|
|
|
3,587
|
|
|
—
|
|
|
16,640
|
|
||||||
Other
|
46,095
|
|
|
4,799
|
|
|
733
|
|
(c)
|
25,884
|
|
|
5,594
|
|
(g)
|
83,105
|
|
||||||
Total noninterest expense
|
176,813
|
|
|
19,625
|
|
|
733
|
|
|
86,795
|
|
|
5,594
|
|
|
289,560
|
|
||||||
Income before taxes
|
121,687
|
|
|
5,564
|
|
|
377
|
|
|
58,456
|
|
|
21,046
|
|
|
207,130
|
|
||||||
Income tax expense
|
45,175
|
|
|
1,423
|
|
|
137
|
|
(d)
|
19,832
|
|
|
7,635
|
|
(h)
|
74,202
|
|
||||||
Net income
|
$
|
76,512
|
|
|
$
|
4,141
|
|
|
$
|
240
|
|
|
$
|
38,624
|
|
|
$
|
13,411
|
|
|
$
|
132,928
|
|
Pro Forma Combined Per Share Data (Common Stock)
(1)
|
|
|
|
|
|
|
|
|
|||||||||||||||
Earnings:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic
|
$
|
2.98
|
|
|
|
|
|
|
$
|
1.38
|
|
|
|
|
$
|
3.24
|
|
||||||
Diluted
(2)
|
$
|
2.97
|
|
|
|
|
|
|
$
|
1.36
|
|
|
|
|
$
|
3.23
|
|
||||||
Weighted average shares outstanding:
(2)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic
|
25,636,292
|
|
|
|
|
|
|
28,056,588
|
|
|
|
|
40,987,061
|
|
|||||||||
Diluted
|
25,742,362
|
|
|
|
|
|
|
28,343,687
|
|
|
|
|
41,093,131
|
|
(1)
|
The per share amounts and the weighted average shares outstanding for each of the periods shown have been adjusted for the assumed issuance of a total of 13,179,748 and 8,804,699 shares of Independent’s common stock to Guaranty’s and Carlile Bancshares' shareholders, respectively, in the respective mergers, effective as of January 1, 2017.
|
(2)
|
The pro forma combined diluted earnings per share for each period presented are calculated as the pro forma combined net income for the relevant period divided by the weighted average number of Independent’s common shares outstanding during that period adjusted for the dilutive effect of outstanding warrants to purchase shares of Independent common stock, and adjusted for the assumed issuance of a total of 13,179,748 and 8,804,699 shares of Independent’s common stock to Guaranty’s and Carlile Bancshares' shareholders, respectively, in the respective mergers,, effective as of January 1, 2017. See Note 1 to Independent’s consolidated financial statements appearing in Independent’s Annual Report on Form 10-K for the year ended December 31, 2017 for more information regarding the dilutive effect of its outstanding warrants and regarding certain nonvested shares of common stock, the effect of which is anti-dilutive.
|