|
Tennessee
|
37-1641316
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
|
|
1736 Carothers Parkway
|
|
Suite 100
|
|
Brentwood,
|
|
Tennessee
|
37027
|
(Address of principal executive offices)
|
(Zip Code)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, $1.00 par value per share
|
RBNC
|
The Nasdaq Capital Market
|
Large Accelerated Filer
|
¨
|
Accelerated Filer
|
ý
|
Non-Accelerated Filer
|
¨
|
Smaller Reporting Company
|
ý
|
Emerging growth company
|
ý
|
|
|
|
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
|
3
|
|
Item 1.
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
|
|
|
Item 1.
|
||
Item 1A.
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
Item 5.
|
||
Item 6.
|
||
|
|
|
(i)
|
the possibility that our asset quality could decline or that we experience greater loan losses than anticipated;
|
(ii)
|
increased levels of other real estate, primarily as a result of foreclosures;
|
(iii)
|
the impact of liquidity needs on our results of operations and financial condition;
|
(iv)
|
the effect of interest rate increases on the cost of deposits;
|
(v)
|
unanticipated weakness in loan demand or loan pricing;
|
(vi)
|
greater than anticipated adverse conditions in the national economy or local economies in which we operate, including Middle Tennessee;
|
(vii)
|
lack of strategic growth opportunities or our failure to execute on those opportunities;
|
(viii)
|
deterioration in the financial condition of borrowers resulting in significant increases in loan losses and provisions for those losses;
|
(ix)
|
the ability to grow and retain low-cost core deposits and retain large, uninsured deposits;
|
(x)
|
the impact of competition with other financial institutions and financial services providers, including pricing pressures and the resulting impact on Reliant Bancorp’s results, including as a result of compression to net interest margin;
|
(xi)
|
our ability to effectively manage problem credits;
|
(xii)
|
our ability to successfully implement efficiency initiatives on time and in amounts projected;
|
(xiii)
|
our ability to successfully develop and market new products and technology;
|
(xiv)
|
the impact of negative developments in the financial industry and U.S. and global capital and credit markets;
|
(xv)
|
our ability to retain the services of key personnel;
|
(xvi)
|
our ability to adapt to technological changes;
|
(xvii)
|
risks associated with litigation, including the applicability of insurance coverage;
|
(xviii)
|
the vulnerability of Reliant Bank’s network and online banking portals, and the systems of parties with whom Reliant Bancorp and Reliant Bank contract, to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss, and other security breaches;
|
(xix)
|
changes in state and federal laws, rules, regulations, or policies applicable to banks or bank or financial holding companies, including regulatory or legislative developments;
|
(xx)
|
adverse results (including costs, fines, reputational harm, and/or other negative effects) from current or future litigation, regulatory examinations, or other legal and/or regulatory actions;
|
(xxi)
|
the risk that expected cost savings and revenue synergies from the pending acquisitions of Tennessee Community Bank Holdings, Inc. (“TCB Holdings”) (the “TCB Holdings Transaction”) and First Advantage Bancorp (“First Advantage”) (the “First Advantage Transaction” and, together with the TCB Holdings Transaction, the “Transactions”) may not be realized or take longer than anticipated to be realized;
|
(xxii)
|
the ability to meet expectations regarding the timing and completion and accounting and tax treatment of the Transactions;
|
(xxiii)
|
the effect of the announcement and pendency of the Transactions on customer, supplier, or employee relationships and operating results (including without limitation difficulties in maintaining relationships with employees and customers), as well as on the market price of Reliant Bancorp’s common stock;
|
(xxiv)
|
the risk that the businesses and operations of First Advantage and its subsidiaries and of TCB Holdings and its subsidiaries cannot be successfully integrated with the business and operations of Reliant Bancorp and its subsidiaries or that integration will be more costly or difficult than expected;
|
(xxv)
|
the occurrence of any event, change, or other circumstances that could give rise to the termination of the definitive merger agreement for the TCB Holdings Transaction or the First Advantage Transaction;
|
(xxvi)
|
the amount of costs, fees, expenses, and charges related to the Transactions, including those arising as a result of unexpected factors or events;
|
(xxvii)
|
the ability to obtain the shareholder and governmental approvals required for the Transactions;
|
(xxviii)
|
reputational risk associated with and the reaction of the parties’ customers, suppliers, employees, or other business partners to the Transactions;
|
(xxix)
|
the failure of any of the conditions to the closing of the Transactions to be satisfied, or any unexpected delay in closing the Transactions;
|
(xxx)
|
the dilution caused by Reliant Bancorp’s issuance of additional shares of its common stock in the Transactions;
|
(xxxi)
|
Reliant Bancorp’s ability to simultaneously execute on two separate business combination transactions;
|
(xxxii)
|
the risk associated with Reliant Bancorp management’s attention being diverted away from the day-to-day business and operations of Reliant Bancorp to the completion of the Transactions; and
|
(xxxiii)
|
general competitive, economic, political, and market conditions, including economic conditions in the local markets where we operate.
|
|
September 30,
2019 |
|
December 31, 2018
|
||||
ASSETS
|
|
|
|
||||
Cash and due from banks
|
$
|
51,247
|
|
|
$
|
34,807
|
|
Federal funds sold
|
73
|
|
|
371
|
|
||
Total cash and cash equivalents
|
51,320
|
|
|
35,178
|
|
||
Securities available for sale
|
297,310
|
|
|
296,323
|
|
||
Loans, net
|
1,338,392
|
|
|
1,220,184
|
|
||
Mortgage loans held for sale, net
|
16,757
|
|
|
15,823
|
|
||
Accrued interest receivable
|
7,488
|
|
|
8,214
|
|
||
Premises and equipment, net
|
21,390
|
|
|
22,033
|
|
||
Restricted equity securities, at cost
|
11,279
|
|
|
11,690
|
|
||
Other real estate, net
|
1,943
|
|
|
1,000
|
|
||
Cash surrender value of life insurance contracts
|
46,351
|
|
|
45,513
|
|
||
Deferred tax assets, net
|
456
|
|
|
7,428
|
|
||
Goodwill
|
43,642
|
|
|
43,642
|
|
||
Core deposit intangibles
|
7,507
|
|
|
8,219
|
|
||
Other assets
|
8,652
|
|
|
9,091
|
|
||
TOTAL ASSETS
|
$
|
1,852,487
|
|
|
$
|
1,724,338
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
||||
Deposits
|
|
|
|
||||
Noninterest-bearing demand
|
$
|
237,917
|
|
|
$
|
216,937
|
|
Interest-bearing demand
|
149,442
|
|
|
154,218
|
|
||
Savings and money market deposit accounts
|
397,243
|
|
|
401,308
|
|
||
Time
|
826,031
|
|
|
665,440
|
|
||
Total deposits
|
1,610,633
|
|
|
1,437,903
|
|
||
Accrued interest payable
|
1,610
|
|
|
1,063
|
|
||
Subordinated debentures
|
11,665
|
|
|
11,603
|
|
||
Federal Home Loan Bank advances
|
3,928
|
|
|
57,498
|
|
||
Dividends payable
|
1,012
|
|
|
1,036
|
|
||
Other liabilities
|
3,987
|
|
|
6,821
|
|
||
TOTAL LIABILITIES
|
1,632,835
|
|
|
1,515,924
|
|
||
Preferred stock, $1 par value; 10,000,000 shares authorized; no shares issued to date
|
—
|
|
|
—
|
|
||
Common stock, $1 par value; 30,000,000 shares authorized; 11,195,062 and 11,530,810 shares issued and outstanding at Sept. 30, 2019, and Dec. 31, 2018, respectively
|
11,195
|
|
|
11,531
|
|
||
Additional paid-in capital
|
166,512
|
|
|
173,238
|
|
||
Retained earnings
|
36,339
|
|
|
27,329
|
|
||
Accumulated other comprehensive income (loss)
|
5,606
|
|
|
(3,684
|
)
|
||
TOTAL STOCKHOLDERS’ EQUITY
|
219,652
|
|
|
208,414
|
|
||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
1,852,487
|
|
|
$
|
1,724,338
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|||||||||
INTEREST INCOME
|
|
|
|
|
|
|
|
|||||||||
Interest and fees on loans
|
$
|
17,502
|
|
|
$
|
14,873
|
|
|
$
|
50,631
|
|
|
$
|
42,497
|
|
|
Interest and fees on loans held for sale
|
263
|
|
|
294
|
|
|
614
|
|
|
1,101
|
|
|||||
Interest on investment securities, taxable
|
549
|
|
|
414
|
|
|
1,639
|
|
|
1,374
|
|
|||||
Interest on investment securities, nontaxable
|
1,576
|
|
|
1,709
|
|
|
4,944
|
|
|
4,921
|
|
|||||
Federal funds sold and other
|
321
|
|
|
280
|
|
|
918
|
|
|
869
|
|
|||||
TOTAL INTEREST INCOME
|
20,211
|
|
|
17,570
|
|
|
58,746
|
|
|
50,762
|
|
|||||
INTEREST EXPENSE
|
|
|
|
|
|
|
|
|||||||||
Deposits
|
|
|
|
|
|
|
|
|||||||||
Demand
|
81
|
|
|
102
|
|
|
278
|
|
|
263
|
|
|||||
Savings and money market deposit accounts
|
973
|
|
|
657
|
|
|
3,154
|
|
|
1,709
|
|
|||||
Time
|
4,828
|
|
|
2,542
|
|
|
12,852
|
|
|
6,737
|
|
|||||
Federal Home Loan Bank advances and other
|
66
|
|
|
606
|
|
|
534
|
|
|
1,275
|
|
|||||
Subordinated debentures
|
199
|
|
|
197
|
|
|
590
|
|
|
526
|
|
|||||
TOTAL INTEREST EXPENSE
|
6,147
|
|
|
4,104
|
|
|
17,408
|
|
|
10,510
|
|
|||||
NET INTEREST INCOME
|
14,064
|
|
|
13,466
|
|
|
41,338
|
|
|
40,252
|
|
|||||
PROVISION FOR LOAN LOSSES
|
606
|
|
|
322
|
|
|
806
|
|
|
759
|
|
|||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
|
13,458
|
|
|
13,144
|
|
|
40,532
|
|
|
39,493
|
|
|||||
NONINTEREST INCOME
|
|
|
|
|
|
|
|
|||||||||
Service charges on deposit accounts
|
976
|
|
|
833
|
|
|
2,796
|
|
|
2,504
|
|
|||||
Gains on mortgage loans sold, net
|
1,385
|
|
|
1,399
|
|
|
3,170
|
|
|
4,061
|
|
|||||
Gain on securities transactions, net
|
—
|
|
|
18
|
|
|
306
|
|
|
43
|
|
|||||
Gain on sale of other real estate
|
—
|
|
|
150
|
|
|
—
|
|
|
259
|
|
|||||
Gain (loss) on disposal of premises and equipment
|
—
|
|
|
16
|
|
|
—
|
|
|
16
|
|
|||||
Other
|
399
|
|
|
361
|
|
|
1,124
|
|
|
1,139
|
|
|||||
TOTAL NONINTEREST INCOME
|
2,760
|
|
|
2,777
|
|
|
7,396
|
|
|
8,022
|
|
|||||
NONINTEREST EXPENSE
|
|
|
|
|
|
|
|
|||||||||
Salaries and employee benefits
|
7,634
|
|
|
6,913
|
|
|
22,605
|
|
|
20,480
|
|
|||||
Occupancy
|
1,359
|
|
|
1,234
|
|
|
4,069
|
|
|
3,673
|
|
|||||
Information technology
|
1,553
|
|
|
1,315
|
|
|
4,538
|
|
|
3,913
|
|
|||||
Advertising and public relations
|
387
|
|
|
183
|
|
|
916
|
|
|
413
|
|
|||||
Audit, legal and consulting
|
350
|
|
|
588
|
|
|
1,836
|
|
|
2,027
|
|
|||||
Federal deposit insurance
|
(96
|
)
|
|
210
|
|
|
348
|
|
|
630
|
|
|||||
Merger expenses
|
299
|
|
|
82
|
|
|
302
|
|
|
2,742
|
|
|||||
Other operating
|
1,561
|
|
|
1,637
|
|
|
4,305
|
|
|
4,487
|
|
|||||
TOTAL NONINTEREST EXPENSE
|
13,047
|
|
|
12,162
|
|
|
38,919
|
|
|
38,365
|
|
|||||
INCOME BEFORE PROVISION FOR INCOME TAXES
|
3,171
|
|
|
3,759
|
|
|
9,009
|
|
—
|
|
9,150
|
|
||||
INCOME TAX EXPENSE
|
557
|
|
|
519
|
|
|
1,430
|
|
|
1,431
|
|
|||||
CONSOLIDATED NET INCOME
|
2,614
|
|
|
3,240
|
|
|
7,579
|
|
|
7,719
|
|
|||||
NONCONTROLLING INTEREST IN NET LOSS OF SUBSIDIARY
|
1,386
|
|
|
842
|
|
|
4,484
|
|
|
2,243
|
|
|||||
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS
|
$
|
4,000
|
|
|
$
|
4,082
|
|
|
$
|
12,063
|
|
|
$
|
9,962
|
|
|
Basic net income attributable to common shareholders, per share
|
$
|
0.36
|
|
|
$
|
0.36
|
|
|
$
|
1.07
|
|
|
$
|
0.88
|
|
|
Diluted net income attributable to common shareholders, per share
|
$
|
0.36
|
|
|
$
|
0.36
|
|
|
$
|
1.07
|
|
|
$
|
0.87
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Consolidated net income
|
$
|
2,614
|
|
|
$
|
3,240
|
|
|
$
|
7,579
|
|
|
$
|
7,719
|
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
||||||||
Net unrealized gains (losses) on available-for-sale securities, net of tax of $973 and $712 for the three months ended September 30, 2019 and 2018, respectively, and $3,935 and $2,260 for the nine months ended September 30, 2019 and 2018, respectively
|
2,736
|
|
|
(2,023
|
)
|
|
11,122
|
|
|
(6,401
|
)
|
||||
Net unrealized losses on interest rate swap derivatives net of tax of $98 for the three months ended September 30, 2019 and $569 for the nine months ended September 30, 2019
|
(275
|
)
|
|
—
|
|
|
(1,606
|
)
|
|
—
|
|
||||
Reclassification adjustment for gains included in net income, net of tax of $4 for the three months ended September 30, 2018 and $80 and $11 for the nine months ended September 30, 2019 and 2018, respectively
|
—
|
|
|
(14
|
)
|
|
(226
|
)
|
|
(32
|
)
|
||||
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)
|
2,461
|
|
|
(2,037
|
)
|
|
9,290
|
|
|
(6,433
|
)
|
||||
TOTAL COMPREHENSIVE INCOME
|
$
|
5,075
|
|
|
$
|
1,203
|
|
|
$
|
16,869
|
|
|
$
|
1,286
|
|
|
COMMON STOCK
|
|
ADDITIONAL
PAID-IN
CAPITAL
|
|
RETAINED
EARNINGS
|
|
ACCUMULATED
OTHER
COMPREHENSIVE
INCOME (LOSS)
|
|
NONCONTROLLING
INTEREST
|
|
TOTAL
|
|||||||||||||||
|
SHARES
|
|
AMOUNT
|
|
|
|
|
|
||||||||||||||||||
BALANCE - JANUARY 1, 2019
|
11,530,810
|
|
|
$
|
11,531
|
|
|
$
|
173,238
|
|
|
$
|
27,329
|
|
|
$
|
(3,684
|
)
|
|
$
|
—
|
|
|
$
|
208,414
|
|
Stock based compensation expense
|
—
|
|
|
—
|
|
|
250
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
250
|
|
||||||
Exercise of stock options
|
2,183
|
|
|
2
|
|
|
26
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28
|
|
||||||
Restricted stock awards
|
3,000
|
|
|
3
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Restricted stock and dividend forfeiture
|
(3,750
|
)
|
|
(4
|
)
|
|
4
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
Common stock shares redeemed
|
(29,958
|
)
|
|
(30
|
)
|
|
(629
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(659
|
)
|
||||||
Noncontrolling interest contributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,543
|
|
|
1,543
|
|
||||||
Cash dividend declared to common shareholders
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,035
|
)
|
|
—
|
|
|
—
|
|
|
(1,035
|
)
|
||||||
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
3,824
|
|
|
—
|
|
|
(1,543
|
)
|
|
2,281
|
|
||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,296
|
|
|
—
|
|
|
4,296
|
|
||||||
BALANCE - MARCH 31, 2019
|
11,502,285
|
|
|
$
|
11,502
|
|
|
$
|
172,886
|
|
|
$
|
30,119
|
|
|
$
|
612
|
|
|
$
|
—
|
|
|
$
|
215,119
|
|
Stock based compensation expense
|
—
|
|
|
—
|
|
|
280
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
280
|
|
||||||
Exercise of stock options
|
24,523
|
|
|
25
|
|
|
298
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
323
|
|
||||||
Employee Stock Purchase Plan stock issuance
|
4,728
|
|
|
5
|
|
|
85
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
90
|
|
||||||
Restricted stock awards
|
5,000
|
|
|
5
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Restricted stock and dividend forfeiture
|
(4,000
|
)
|
|
(4
|
)
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Common stock shares redeemed
|
(335,973
|
)
|
|
(336
|
)
|
|
(7,296
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,632
|
)
|
||||||
Noncontrolling interest contributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,555
|
|
|
1,555
|
|
||||||
Cash dividend declared to common shareholders
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,009
|
)
|
|
—
|
|
|
—
|
|
|
(1,009
|
)
|
||||||
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
4,239
|
|
|
—
|
|
|
(1,555
|
)
|
|
2,684
|
|
||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,533
|
|
|
—
|
|
|
2,533
|
|
||||||
BALANCE - JUNE 30, 2019
|
11,196,563
|
|
|
$
|
11,197
|
|
|
$
|
166,252
|
|
|
$
|
33,349
|
|
|
$
|
3,145
|
|
|
$
|
—
|
|
|
$
|
213,943
|
|
Stock based compensation expense
|
—
|
|
|
—
|
|
|
337
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
337
|
|
||||||
Exercise of stock options
|
600
|
|
|
1
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
||||||
Restricted stock awards
|
1,500
|
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Restricted shares withheld for taxes
|
(3,601
|
)
|
|
(4
|
)
|
|
(84
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(88
|
)
|
||||||
Noncontrolling interest contributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,386
|
|
|
1,386
|
|
||||||
Cash dividend declared to common shareholders
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,010
|
)
|
|
—
|
|
|
—
|
|
|
(1,010
|
)
|
||||||
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
4,000
|
|
|
—
|
|
|
(1,386
|
)
|
|
2,614
|
|
||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,461
|
|
|
—
|
|
|
2,461
|
|
||||||
BALANCE - SEPTEMBER 30, 2019
|
11,195,062
|
|
|
$
|
11,195
|
|
|
$
|
166,512
|
|
|
$
|
36,339
|
|
|
$
|
5,606
|
|
|
$
|
—
|
|
|
$
|
219,652
|
|
|
COMMON STOCK
|
|
ADDITIONAL
PAID-IN
CAPITAL
|
|
RETAINED
EARNINGS
|
|
ACCUMULATED
OTHER
COMPREHENSIVE
INCOME (LOSS)
|
|
NONCONTROLLING
INTEREST
|
|
TOTAL
|
|||||||||||||||
|
SHARES
|
|
AMOUNT
|
|
|
|
|
|
||||||||||||||||||
BALANCE - JANUARY 1, 2018
|
9,034,439
|
|
|
$
|
9,034
|
|
|
$
|
112,437
|
|
|
$
|
17,189
|
|
|
$
|
1,477
|
|
|
$
|
—
|
|
|
$
|
140,137
|
|
Stock based compensation expense
|
—
|
|
|
—
|
|
|
224
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
224
|
|
||||||
Exercise of stock options
|
25,225
|
|
|
25
|
|
|
315
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
340
|
|
||||||
Restricted stock awards
|
4,500
|
|
|
5
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Restricted stock forfeiture
|
(1,000
|
)
|
|
(1
|
)
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Conversion shares issued to shareholders' of
Community First, Inc. |
2,416,444
|
|
|
2,417
|
|
|
59,566
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
61,983
|
|
||||||
Noncontrolling interest contributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
464
|
|
|
464
|
|
||||||
Cash dividends declared to common shareholders
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,060
|
)
|
|
—
|
|
|
—
|
|
|
(1,060
|
)
|
||||||
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
3,741
|
|
|
—
|
|
|
(464
|
)
|
|
3,277
|
|
||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,414
|
)
|
|
—
|
|
|
(4,414
|
)
|
||||||
BALANCE - MARCH 31, 2018
|
11,479,608
|
|
|
$
|
11,480
|
|
|
$
|
172,538
|
|
|
$
|
19,870
|
|
|
$
|
(2,937
|
)
|
|
$
|
—
|
|
|
$
|
200,951
|
|
Stock based compensation expense
|
—
|
|
|
—
|
|
|
148
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
148
|
|
||||||
Exercise of stock options
|
357
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
||||||
Restricted stock awards
|
3,000
|
|
|
3
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Noncontrolling interest contributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
937
|
|
|
937
|
|
||||||
Cash dividend declared to common shareholders
|
—
|
|
|
—
|
|
|
—
|
|
|
(919
|
)
|
|
—
|
|
|
—
|
|
|
(919
|
)
|
||||||
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
2,139
|
|
|
—
|
|
|
(937
|
)
|
|
1,202
|
|
||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|
18
|
|
||||||
BALANCE - JUNE 30, 2018
|
11,482,965
|
|
|
$
|
11,483
|
|
|
$
|
172,686
|
|
|
$
|
21,090
|
|
|
$
|
(2,919
|
)
|
|
$
|
—
|
|
|
$
|
202,340
|
|
Stock based compensation expense
|
—
|
|
|
—
|
|
|
237
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
237
|
|
||||||
Exercise of stock options
|
4,419
|
|
|
5
|
|
|
50
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
55
|
|
||||||
Restricted stock awards
|
43,710
|
|
|
43
|
|
|
(43
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Noncontrolling interest contributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
842
|
|
|
842
|
|
||||||
Cash dividend declared to common shareholders
|
—
|
|
|
—
|
|
|
—
|
|
|
(926
|
)
|
|
—
|
|
|
—
|
|
|
(926
|
)
|
||||||
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
4,082
|
|
|
—
|
|
|
(842
|
)
|
|
3,240
|
|
||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,037
|
)
|
|
—
|
|
|
(2,037
|
)
|
||||||
BALANCE - SEPTEMBER 30, 2018
|
11,531,094
|
|
|
$
|
11,531
|
|
|
$
|
172,930
|
|
|
$
|
24,246
|
|
|
$
|
(4,956
|
)
|
|
$
|
—
|
|
|
$
|
203,751
|
|
|
Nine Months Ended
September 30, |
||||||
|
2019
|
|
2018
|
||||
OPERATING ACTIVITIES
|
|
|
|
||||
Consolidated net income
|
$
|
7,579
|
|
|
$
|
7,719
|
|
Adjustments to reconcile consolidated net income to net cash provided by operating activities
|
|
|
|
||||
Provision for loan losses
|
806
|
|
|
759
|
|
||
Provision to reflect market value of mortgage loans held for sale
|
—
|
|
|
196
|
|
||
Deferred income taxes (benefit)
|
3,686
|
|
|
(959
|
)
|
||
Loss on disposal of premises and equipment
|
—
|
|
|
(16
|
)
|
||
Depreciation and amortization of premises and equipment
|
1,486
|
|
|
1,235
|
|
||
Net amortization of securities
|
2,302
|
|
|
2,374
|
|
||
Net realized gains on sales of securities
|
(306
|
)
|
|
(43
|
)
|
||
Gains on mortgage loans sold, net
|
(3,170
|
)
|
|
(4,061
|
)
|
||
Stock-based compensation expense
|
867
|
|
|
609
|
|
||
Realization of gain on other real estate
|
—
|
|
|
(259
|
)
|
||
Increase in cash surrender value of life insurance contracts
|
(838
|
)
|
|
(893
|
)
|
||
Mortgage loans originated for resale
|
(106,520
|
)
|
|
(113,481
|
)
|
||
Proceeds from sale of mortgage loans
|
108,756
|
|
|
150,866
|
|
||
Other accretion
|
(477
|
)
|
|
(615
|
)
|
||
Change in: Accrued interest receivable
|
726
|
|
|
(1,123
|
)
|
||
Other assets
|
508
|
|
|
(2,852
|
)
|
||
Accrued interest payable
|
547
|
|
|
845
|
|
||
Other liabilities
|
(6,392
|
)
|
|
778
|
|
||
TOTAL ADJUSTMENTS
|
1,981
|
|
|
33,360
|
|
||
NET CASH PROVIDED BY OPERATING ACTIVITIES
|
9,560
|
|
|
41,079
|
|
||
INVESTING ACTIVITIES
|
|
|
|
||||
Cash received from merger
|
—
|
|
|
33,128
|
|
||
Activities in available for sale securities
|
|
|
|
||||
Purchases
|
(47,870
|
)
|
|
(103,375
|
)
|
||
Sales
|
52,434
|
|
|
100,737
|
|
||
Maturities, prepayments and calls
|
8,587
|
|
|
10,125
|
|
||
Purchases of restricted equity securities
|
—
|
|
|
(2,181
|
)
|
||
Redemption of restricted equity securities
|
411
|
|
|
—
|
|
||
Net increase in loans
|
(118,758
|
)
|
|
(108,431
|
)
|
||
Purchase of buildings, leasehold improvements, and equipment
|
(843
|
)
|
|
(4,000
|
)
|
||
Proceeds from sale of other real estate
|
—
|
|
|
1,947
|
|
||
NET CASH USED IN INVESTING ACTIVITIES
|
(106,039
|
)
|
|
(72,050
|
)
|
||
FINANCING ACTIVITIES
|
|
|
|
||||
Net change in deposits
|
172,741
|
|
|
79,588
|
|
||
Net change in advances from Federal Home Loan Bank
|
(53,529
|
)
|
|
(34,020
|
)
|
||
Issuance of common stock, net of repurchase of restricted shares
|
272
|
|
|
398
|
|
||
Issuance of common stock from Employee Stock Purchase Plan
|
90
|
|
|
—
|
|
||
Redemption of common stock
|
(8,291
|
)
|
|
—
|
|
||
Noncontrolling interest contributions received
|
4,415
|
|
|
1,305
|
|
||
Cash dividends paid on common stock
|
(3,077
|
)
|
|
(2,525
|
)
|
||
NET CASH PROVIDED BY FINANCING ACTIVITIES
|
112,621
|
|
|
44,746
|
|
||
NET CHANGE IN CASH AND CASH EQUIVALENTS
|
16,142
|
|
|
13,775
|
|
||
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD
|
35,178
|
|
|
20,668
|
|
||
CASH AND CASH EQUIVALENTS - END OF PERIOD
|
$
|
51,320
|
|
|
$
|
34,443
|
|
|
Nine Months Ended
September 30, |
||||||
|
2019
|
|
2018
|
||||
|
|
|
|
||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
|
|
|
||||
Cash paid during the period for
|
|
|
|
||||
Interest
|
$
|
16,861
|
|
|
$
|
9,655
|
|
Taxes
|
$
|
1,607
|
|
|
$
|
2,170
|
|
|
|
|
|
||||
Non-cash investing and financing activities
|
|
|
|
||||
Unrealized gain (loss) on securities available-for-sale
|
$
|
16,134
|
|
|
$
|
(9,742
|
)
|
Unrealized gain (loss) on derivatives
|
$
|
(3,558
|
)
|
|
$
|
1,038
|
|
Change in due to/from noncontrolling interest
|
$
|
4,484
|
|
|
$
|
2,243
|
|
Loans foreclosed and transferred to other real estate owned and foreclosed assets
|
$
|
943
|
|
|
$
|
1,060
|
|
|
September 30, 2019
|
||||||||||||||
|
Amortized
Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Estimated
Fair Value |
||||||||
U. S. Treasury and other U. S. government agencies
|
$
|
310
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
310
|
|
State and municipal
|
210,537
|
|
|
12,479
|
|
|
—
|
|
|
223,016
|
|
||||
Corporate bonds
|
7,880
|
|
|
64
|
|
|
(122
|
)
|
|
7,822
|
|
||||
Mortgage backed securities
|
39,143
|
|
|
379
|
|
|
(404
|
)
|
|
39,118
|
|
||||
Asset backed securities
|
27,577
|
|
|
11
|
|
|
(544
|
)
|
|
27,044
|
|||||
Total
|
$
|
285,447
|
|
|
$
|
12,933
|
|
|
$
|
(1,070
|
)
|
|
$
|
297,310
|
|
|
December 31, 2018
|
||||||||||||||
|
Amortized
Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Estimated
Fair Value |
||||||||
U. S. Treasury and other U. S. government agencies
|
$
|
568
|
|
|
$
|
—
|
|
|
$
|
(14
|
)
|
|
$
|
554
|
|
State and municipal
|
232,589
|
|
|
879
|
|
|
(4,170
|
)
|
|
229,298
|
|
||||
Corporate bonds
|
3,130
|
|
|
—
|
|
|
(113
|
)
|
|
3,017
|
|
||||
Mortgage backed securities
|
32,172
|
|
|
34
|
|
|
(248
|
)
|
|
31,958
|
|
||||
Asset backed securities
|
28,635
|
|
|
—
|
|
|
(639
|
)
|
|
27,996
|
|||||
Time deposits
|
3,500
|
|
|
—
|
|
|
—
|
|
|
3,500
|
|
||||
Total
|
$
|
300,594
|
|
|
$
|
913
|
|
|
$
|
(5,184
|
)
|
|
$
|
296,323
|
|
|
Amortized
Cost
|
|
Estimated
Fair Value
|
||||
Due within one year
|
$
|
500
|
|
|
$
|
499
|
|
Due in one to five years
|
1,035
|
|
|
1,035
|
|
||
Due in five to ten years
|
12,076
|
|
|
12,447
|
|
||
Due after ten years
|
205,116
|
|
|
217,167
|
|
||
Mortgage backed securities
|
39,143
|
|
|
39,118
|
|
||
Asset backed securities
|
27,577
|
|
|
27,044
|
|
||
Total
|
$
|
285,447
|
|
|
$
|
297,310
|
|
|
Less than 12 months
|
|
12 months or more
|
|
Total
|
||||||||||||||||||
|
Estimated
Fair Value
|
|
Unrealized
Loss
|
|
Estimated
Fair Value |
|
Unrealized
Loss |
|
Estimated
Fair Value |
|
Unrealized
Loss |
||||||||||||
At September 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U. S. Treasury and other
U. S. government agencies
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
State and municipal
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Corporate bonds
|
499
|
|
|
1
|
|
|
2,509
|
|
|
121
|
|
|
3,008
|
|
|
122
|
|
||||||
Mortgage backed securities
|
16,070
|
|
|
224
|
|
|
8,296
|
|
|
180
|
|
|
24,366
|
|
|
404
|
|
||||||
Asset backed securities
|
1,990
|
|
|
11
|
|
|
23,056
|
|
|
533
|
|
|
25,046
|
|
|
544
|
|
||||||
Total temporarily impaired
|
$
|
18,559
|
|
|
$
|
236
|
|
|
$
|
33,861
|
|
|
$
|
834
|
|
|
$
|
52,420
|
|
|
$
|
1,070
|
|
At December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U. S. Treasury and other
U. S. government agencies
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
555
|
|
|
$
|
14
|
|
|
$
|
555
|
|
|
$
|
14
|
|
State and municipal
|
118,580
|
|
|
2,263
|
|
|
47,223
|
|
|
1,907
|
|
|
165,803
|
|
|
4,170
|
|
||||||
Corporate bonds
|
2,526
|
|
|
105
|
|
|
492
|
|
|
8
|
|
|
3,018
|
|
|
113
|
|
||||||
Mortgage backed securities
|
17,015
|
|
|
99
|
|
|
5,397
|
|
|
149
|
|
|
22,412
|
|
|
248
|
|
||||||
Asset backed securities
|
20,351
|
|
|
383
|
|
|
7,255
|
|
|
256
|
|
|
27,606
|
|
|
639
|
|
||||||
Total temporarily impaired
|
$
|
158,472
|
|
|
$
|
2,850
|
|
|
$
|
60,922
|
|
|
$
|
2,334
|
|
|
$
|
219,394
|
|
|
$
|
5,184
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
Commercial, Industrial and Agricultural
|
$
|
231,935
|
|
|
$
|
213,850
|
|
Real Estate
|
|
|
|
||||
1-4 Family Residential
|
236,332
|
|
|
225,863
|
|
||
1-4 Family HELOC
|
93,176
|
|
|
88,112
|
|
||
Multi-family and Commercial
|
520,297
|
|
|
447,840
|
|
||
Construction, Land Development and Farmland
|
238,082
|
|
|
220,801
|
|
||
Consumer
|
17,448
|
|
|
20,495
|
|
||
Other
|
13,252
|
|
|
14,106
|
|
||
Total
|
1,350,522
|
|
|
1,231,067
|
|
||
Less
|
|
|
|
||||
Deferred loan fees (cost)
|
(161
|
)
|
|
(9
|
)
|
||
Allowance for possible loan losses
|
12,291
|
|
|
10,892
|
|
||
Loans, net
|
$
|
1,338,392
|
|
|
$
|
1,220,184
|
|
|
Commercial Industrial and Agricultural
|
Multi-family
and Commercial Real Estate |
Construction
Land Development and Farmland |
1-4 Family
Residential Real Estate |
1-4 Family HELOC
|
Consumer
|
Other
|
Total
|
||||||||||||||||
Beginning balance at December 31, 2018
|
$
|
1,751
|
|
$
|
4,429
|
|
$
|
2,500
|
|
$
|
1,333
|
|
$
|
656
|
|
$
|
184
|
|
$
|
39
|
|
$
|
10,892
|
|
Charge-offs
|
(170
|
)
|
—
|
|
—
|
|
(29
|
)
|
—
|
|
(37
|
)
|
(34
|
)
|
(270
|
)
|
||||||||
Recoveries
|
342
|
|
62
|
|
—
|
|
220
|
|
11
|
|
28
|
|
200
|
|
863
|
|
||||||||
Provision
|
376
|
|
697
|
|
13
|
|
(141
|
)
|
37
|
|
(5
|
)
|
(171
|
)
|
806
|
|
||||||||
Ending balance at September 30, 2019
|
$
|
2,299
|
|
$
|
5,188
|
|
$
|
2,513
|
|
$
|
1,383
|
|
$
|
704
|
|
$
|
170
|
|
$
|
34
|
|
$
|
12,291
|
|
Beginning balance at December 31, 2017
|
$
|
2,538
|
|
$
|
3,166
|
|
$
|
2,434
|
|
$
|
773
|
|
$
|
595
|
|
$
|
183
|
|
$
|
42
|
|
$
|
9,731
|
|
Charge-offs
|
(308
|
)
|
(76
|
)
|
(144
|
)
|
(36
|
)
|
(6
|
)
|
(24
|
)
|
(37
|
)
|
(631
|
)
|
||||||||
Recoveries
|
530
|
|
215
|
|
44
|
|
11
|
|
7
|
|
29
|
|
3
|
|
839
|
|
||||||||
Provision
|
(734
|
)
|
813
|
|
56
|
|
573
|
|
24
|
|
(2
|
)
|
29
|
|
759
|
|
||||||||
Ending balance at September 30, 2018
|
$
|
2,026
|
|
$
|
4,118
|
|
$
|
2,390
|
|
$
|
1,321
|
|
$
|
620
|
|
$
|
186
|
|
$
|
37
|
|
$
|
10,698
|
|
|
Commercial Industrial and Agricultural
|
Multi-family
and
Commercial
Real Estate
|
Construction
Land
Development and Farmland
|
1-4 Family
Residential
Real Estate
|
1-4 Family HELOC
|
Consumer
|
Other
|
Total
|
||||||||||||||||
Allowance for loan losses
|
|
|
|
|
|
|
|
|
||||||||||||||||
Individually evaluated for impairment
|
$
|
580
|
|
$
|
—
|
|
$
|
17
|
|
$
|
—
|
|
$
|
50
|
|
$
|
—
|
|
$
|
—
|
|
$
|
647
|
|
Acquired with credit impairment
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||
Collectively evaluated for impairment
|
1,719
|
|
5,188
|
|
2,496
|
|
1,383
|
|
654
|
|
170
|
34
|
|
11,644
|
|
|||||||||
Total
|
$
|
2,299
|
|
$
|
5,188
|
|
$
|
2,513
|
|
$
|
1,383
|
|
$
|
704
|
|
$
|
170
|
|
$
|
34
|
|
$
|
12,291
|
|
Loans
|
|
|
|
|
|
|
|
|
||||||||||||||||
Individually evaluated for impairment
|
$
|
5,309
|
|
$
|
2,428
|
|
$
|
1,217
|
|
$
|
1,997
|
|
$
|
346
|
|
$
|
—
|
|
$
|
—
|
|
$
|
11,297
|
|
Acquired with credit impairment
|
—
|
|
218
|
|
822
|
|
201
|
|
—
|
|
—
|
|
—
|
|
1,241
|
|
||||||||
Collectively evaluated for impairment
|
226,626
|
|
517,651
|
|
236,043
|
|
234,134
|
|
92,830
|
|
17,448
|
13,252
|
|
1,337,984
|
|
|||||||||
Total
|
$
|
231,935
|
|
$
|
520,297
|
|
$
|
238,082
|
|
$
|
236,332
|
|
$
|
93,176
|
|
$
|
17,448
|
|
$
|
13,252
|
|
$
|
1,350,522
|
|
|
Commercial Industrial and Agricultural
|
Multi-family
and
Commercial
Real Estate
|
Construction
Land
Development and Farmland
|
1-4 Family
Residential
Real Estate
|
1-4 Family HELOC
|
Consumer
|
Other
|
Total
|
||||||||||||||||
Allowance for loan losses
|
|
|
|
|
|
|
|
|
||||||||||||||||
Individually evaluated for impairment
|
$
|
38
|
|
$
|
—
|
|
$
|
17
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
55
|
|
Acquired with credit impairment
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||
Collectively evaluated for impairment
|
1,713
|
|
4,429
|
|
2,483
|
|
1,333
|
|
656
|
|
184
|
|
39
|
|
10,837
|
|
||||||||
Total
|
$
|
1,751
|
|
$
|
4,429
|
|
$
|
2,500
|
|
$
|
1,333
|
|
$
|
656
|
|
$
|
184
|
|
$
|
39
|
|
$
|
10,892
|
|
Loans
|
|
|
|
|
|
|
|
|
||||||||||||||||
Individually evaluated for impairment
|
$
|
978
|
|
$
|
1,160
|
|
$
|
1,780
|
|
$
|
1,246
|
|
$
|
—
|
|
$
|
12
|
|
$
|
—
|
|
$
|
5,176
|
|
Acquired with credit impairment
|
40
|
|
232
|
|
1,751
|
|
262
|
|
—
|
|
11
|
|
—
|
|
2,296
|
|
||||||||
Collectively evaluated for impairment
|
212,832
|
|
446,448
|
|
217,270
|
|
224,355
|
|
88,112
|
|
20,472
|
|
14,106
|
|
1,223,595
|
|
||||||||
Total
|
$
|
213,850
|
|
$
|
447,840
|
|
$
|
220,801
|
|
$
|
225,863
|
|
$
|
88,112
|
|
$
|
20,495
|
|
$
|
14,106
|
|
$
|
1,231,067
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
Commercial, Industrial and Agricultural
|
$
|
601
|
|
|
$
|
279
|
|
Multi-family and Commercial Real Estate
|
1,310
|
|
|
—
|
|
||
Construction, Land Development and Farmland
|
555
|
|
|
1,294
|
|
||
1-4 Family Residential Real Estate
|
1,538
|
|
|
2,556
|
|
||
1-4 Family HELOC
|
346
|
|
|
—
|
|
||
Consumer
|
30
|
|
|
65
|
|
||
Total
|
$
|
4,380
|
|
|
$
|
4,194
|
|
|
Unpaid
Principal
Balance
|
|
Recorded
Investment
with no
Allowance
Recorded
|
|
Recorded
Investment
with
Allowance
Recorded
|
|
Total
Recorded
Investment
|
|
Related
Allowance
|
||||||||||
Commercial, Industrial and Agricultural
|
$
|
5,309
|
|
|
$
|
754
|
|
|
$
|
4,555
|
|
|
$
|
5,309
|
|
|
$
|
580
|
|
Multi-family and Commercial Real Estate
|
2,655
|
|
|
2,646
|
|
|
—
|
|
|
2,646
|
|
|
—
|
|
|||||
Construction, Land Development and Farmland
|
2,356
|
|
|
1,868
|
|
|
171
|
|
|
2,039
|
|
|
17
|
|
|||||
1-4 Family Residential Real Estate
|
2,286
|
|
|
2,198
|
|
|
—
|
|
|
2,198
|
|
|
—
|
|
|||||
1-4 Family HELOC
|
348
|
|
|
296
|
|
|
50
|
|
|
346
|
|
|
50
|
|
|||||
Total
|
$
|
12,954
|
|
|
$
|
7,762
|
|
|
$
|
4,776
|
|
|
$
|
12,538
|
|
|
$
|
647
|
|
|
Unpaid
Principal
Balance
|
|
Recorded
Investment
with no
Allowance
Recorded
|
|
Recorded
Investment
with
Allowance
Recorded
|
|
Total
Recorded
Investment
|
|
Related
Allowance
|
||||||||||
Commercial, Industrial and Agricultural
|
$
|
1,247
|
|
|
$
|
765
|
|
|
$
|
253
|
|
|
$
|
1,018
|
|
|
$
|
38
|
|
Multi-family and Commercial Real Estate
|
1,670
|
|
|
1,392
|
|
|
—
|
|
|
1,392
|
|
|
—
|
|
|||||
Construction, Land Development and Farmland
|
3,920
|
|
|
3,359
|
|
|
172
|
|
|
3,531
|
|
|
17
|
|
|||||
1-4 Family Residential Real Estate
|
2,243
|
|
|
1,508
|
|
|
—
|
|
|
1,508
|
|
|
—
|
|
|||||
Consumer
|
29
|
|
|
23
|
|
|
—
|
|
|
23
|
|
|
—
|
|
|||||
Total
|
$
|
9,109
|
|
|
$
|
7,047
|
|
|
$
|
425
|
|
|
$
|
7,472
|
|
|
$
|
55
|
|
|
2019
|
|
2018
|
||||
Commercial, Industrial and Agricultural
|
$
|
1,921
|
|
|
$
|
2,661
|
|
Multi-family and Commercial Real Estate
|
2,573
|
|
|
2,610
|
|
||
Construction, Land Development and Farmland
|
2,570
|
|
|
4,831
|
|
||
1-4 Family Residential Real Estate
|
1,779
|
|
|
2,708
|
|
||
1-4 Family HELOC
|
161
|
|
|
90
|
|
||
Consumer
|
9
|
|
|
72
|
|
||
Total
|
$
|
9,013
|
|
|
$
|
12,972
|
|
|
Pass
|
|
Special
Mention
|
|
Substandard
|
|
Total
|
||||||||
Commercial, Industrial and Agricultural
|
$
|
225,542
|
|
|
$
|
442
|
|
|
$
|
5,951
|
|
|
$
|
231,935
|
|
1-4 Family Residential Real Estate
|
233,559
|
|
|
—
|
|
|
2,773
|
|
|
236,332
|
|
||||
1-4 Family HELOC
|
92,574
|
|
|
—
|
|
|
602
|
|
|
93,176
|
|
||||
Multi-family and Commercial Real Estate
|
515,570
|
|
|
—
|
|
|
4,727
|
|
|
520,297
|
|
||||
Construction, Land Development and Farmland
|
237,171
|
|
|
—
|
|
|
911
|
|
|
238,082
|
|
||||
Consumer
|
17,217
|
|
|
—
|
|
|
231
|
|
|
17,448
|
|
||||
Other
|
13,252
|
|
|
—
|
|
|
—
|
|
|
13,252
|
|
||||
Total
|
$
|
1,334,885
|
|
|
$
|
442
|
|
|
$
|
15,195
|
|
|
$
|
1,350,522
|
|
|
Pass
|
|
Special
Mention
|
|
Substandard
|
|
Total
|
||||||||
Commercial, Industrial and Agricultural
|
$
|
212,761
|
|
|
$
|
—
|
|
|
$
|
1,089
|
|
|
$
|
213,850
|
|
1-4 Family Residential Real Estate
|
221,546
|
|
|
1,125
|
|
|
3,192
|
|
|
225,863
|
|
||||
1-4 Family HELOC
|
88,112
|
|
|
—
|
|
|
—
|
|
|
88,112
|
|
||||
Multi-family and Commercial Real Estate
|
442,127
|
|
|
3,135
|
|
|
2,578
|
|
|
447,840
|
|
||||
Construction, Land Development and Farmland
|
218,053
|
|
|
579
|
|
|
2,169
|
|
|
220,801
|
|
||||
Consumer
|
20,236
|
|
|
—
|
|
|
259
|
|
|
20,495
|
|
||||
Other
|
14,106
|
|
|
—
|
|
|
—
|
|
|
14,106
|
|
||||
Total
|
$
|
1,216,941
|
|
|
$
|
4,839
|
|
|
$
|
9,287
|
|
|
$
|
1,231,067
|
|
|
30-59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
90+ Days
Past Due
|
|
Total
Past Due
|
|
Current
|
|
Total Loans
|
||||||||||||
Commercial, Industrial and Agricultural
|
$
|
5
|
|
|
$
|
133
|
|
|
$
|
579
|
|
|
$
|
717
|
|
|
$
|
231,218
|
|
|
$
|
231,935
|
|
1-4 Family Residential Real Estate
|
539
|
|
|
514
|
|
|
426
|
|
|
1,479
|
|
|
234,853
|
|
|
236,332
|
|
||||||
1-4 Family HELOC
|
42
|
|
|
—
|
|
|
346
|
|
|
388
|
|
|
92,788
|
|
|
93,176
|
|
||||||
Multi-family and Commercial Real Estate
|
—
|
|
|
505
|
|
|
558
|
|
|
1,063
|
|
|
519,234
|
|
|
520,297
|
|
||||||
Construction, Land Development and Farmland
|
136
|
|
|
—
|
|
|
171
|
|
|
307
|
|
|
237,775
|
|
|
238,082
|
|
||||||
Consumer
|
20
|
|
|
29
|
|
|
10
|
|
|
59
|
|
|
17,389
|
|
|
17,448
|
|
||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,252
|
|
|
13,252
|
|
||||||
Total
|
$
|
742
|
|
|
$
|
1,181
|
|
|
$
|
2,090
|
|
|
$
|
4,013
|
|
|
$
|
1,346,509
|
|
|
$
|
1,350,522
|
|
|
30-59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
90+ Days
Past Due
|
|
Total
Past Due
|
|
Current
|
|
Total Loans
|
||||||||||||
Commercial, Industrial and Agricultural
|
$
|
22
|
|
|
$
|
153
|
|
|
$
|
279
|
|
|
$
|
454
|
|
|
$
|
213,396
|
|
|
$
|
213,850
|
|
1-4 Family Residential Real Estate
|
1,104
|
|
|
335
|
|
|
1,203
|
|
|
2,642
|
|
|
223,221
|
|
|
225,863
|
|
||||||
1-4 Family HELOC
|
50
|
|
|
—
|
|
|
—
|
|
|
50
|
|
|
88,062
|
|
|
88,112
|
|
||||||
Multi-family and Commercial Real Estate
|
—
|
|
|
104
|
|
|
—
|
|
|
104
|
|
|
447,736
|
|
|
447,840
|
|
||||||
Construction, Land Development and Farmland
|
214
|
|
|
—
|
|
|
171
|
|
|
385
|
|
|
220,416
|
|
|
220,801
|
|
||||||
Consumer
|
11
|
|
|
30
|
|
|
46
|
|
|
87
|
|
|
20,408
|
|
|
20,495
|
|
||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,106
|
|
|
14,106
|
|
||||||
Total
|
$
|
1,401
|
|
|
$
|
622
|
|
|
$
|
1,699
|
|
|
$
|
3,722
|
|
|
$
|
1,227,345
|
|
|
$
|
1,231,067
|
|
|
Number of Contracts
|
|
Pre-Modification Outstanding Recorded Investments
|
|
Post-Modification Outstanding Recorded Investments
|
|||||
September 30, 2018
|
|
|
|
|
|
|||||
1-4 Family Residential
|
1
|
|
|
$
|
1,254
|
|
|
$
|
1,254
|
|
Multi-family and Commercial Real Estate
|
1
|
|
|
$
|
661
|
|
|
$
|
585
|
|
Total
|
2
|
|
|
$
|
1,915
|
|
|
$
|
1,839
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
Commercial, Industrial and Agricultural
|
$
|
—
|
|
|
$
|
63
|
|
Multi-family and Commercial Real Estate
|
220
|
|
|
233
|
|
||
Construction, Land Development and Farmland
|
1,030
|
|
|
1,958
|
|
||
1-4 Family Residential Real Estate
|
237
|
|
|
324
|
|
||
Consumer
|
—
|
|
|
18
|
|
||
Total outstanding balance
|
1,487
|
|
|
2,596
|
|
||
Less remaining purchase discount
|
246
|
|
|
300
|
|
||
Allowance for loan losses
|
—
|
|
|
—
|
|
||
Carrying amount, net of allowance
|
$
|
1,241
|
|
|
$
|
2,296
|
|
|
2019
|
|
2018
|
||||
Balance at January 1,
|
$
|
171
|
|
|
$
|
61
|
|
New loans purchased
|
—
|
|
|
261
|
|
||
Year-to-date settlements
|
(7
|
)
|
|
(151
|
)
|
||
Balance at March 31,
|
164
|
|
|
171
|
|
Level 1
|
Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access.
|
Level 3
|
Inputs to the valuation methodology are unobservable and reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities.
|
|
Fair Value
|
|
Quoted
Prices in
Active
Markets
for Identical
Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
September 30, 2019
|
|
|
|
|
|
|
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
U. S. Treasury and other U. S. government agencies
|
$
|
310
|
|
|
$
|
—
|
|
|
$
|
310
|
|
|
$
|
—
|
|
State and municipal
|
223,016
|
|
|
—
|
|
|
223,016
|
|
|
—
|
|
||||
Corporate bonds
|
7,822
|
|
|
—
|
|
|
7,822
|
|
|
—
|
|
||||
Mortgage backed securities
|
39,118
|
|
|
—
|
|
|
39,118
|
|
|
—
|
|
||||
Asset backed securities
|
27,044
|
|
|
—
|
|
|
27,044
|
|
|
—
|
|
||||
Interest rate swaps
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
$
|
4,273
|
|
|
$
|
—
|
|
|
$
|
4,273
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2018
|
|
|
|
|
|
|
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
U. S. Treasury and other U. S. government agencies
|
$
|
554
|
|
|
$
|
—
|
|
|
$
|
554
|
|
|
$
|
—
|
|
State and municipal
|
229,298
|
|
|
—
|
|
|
229,298
|
|
|
—
|
|
||||
Corporate bonds
|
3,017
|
|
|
—
|
|
|
3,017
|
|
|
—
|
|
||||
Mortgage backed securities
|
31,958
|
|
|
—
|
|
|
31,958
|
|
|
—
|
|
||||
Asset backed securities
|
27,996
|
|
|
—
|
|
|
27,996
|
|
|
—
|
|
||||
Time deposits
|
3,500
|
|
|
3,500
|
|
|
—
|
|
|
—
|
|
||||
Interest rate swaps
|
467
|
|
|
—
|
|
|
467
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
$
|
1,183
|
|
|
$
|
—
|
|
|
$
|
1,183
|
|
|
$
|
—
|
|
|
Fair Value
|
|
Quoted Prices in Active Markets for Identical Assets
(Level 1) |
|
Significant Other Observable Inputs
(Level 2) |
|
Significant Unobservable Inputs
(Level 3)
|
||||||||
September 30, 2019
|
|
|
|
|
|
|
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Impaired loans
|
$
|
4,129
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,129
|
|
Other real estate owned
|
1,943
|
|
|
—
|
|
|
—
|
|
|
1,943
|
|
||||
|
|
|
|
|
|
|
|
||||||||
December 31, 2018
|
|
|
|
|
|
|
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Impaired loans
|
$
|
370
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
370
|
|
Other real estate owned
|
1,000
|
|
—
|
|
|
—
|
|
|
1,000
|
|
|
Valuation
Techniques (1)
|
|
Significant
Unobservable Inputs
|
|
Range
(Weighted Average)
|
Impaired loans
|
Appraisal
|
|
Estimated costs to sell
|
|
10%
|
Other real estate owned
|
Appraisal
|
|
Estimated costs to sell
|
|
10%
|
(1)
|
The fair value is generally determined through independent appraisals of the underlying collateral, which may include Level 3 inputs that are not identifiable, or by using the discounted cash flow method if the loan is not collateral dependent. Estimated cash flows change and appraised values of the assets or collateral underlying the loans will be sensitive to changes.
|
September 30, 2019
|
Carrying
Amount
|
|
Estimated
Fair
Value
|
|
Quoted Prices in Active Markets for Identical Assets
(Level 1) |
|
Significant Other Observable Inputs
(Level 2) |
|
Significant Unobservable Inputs
(Level 3)
|
||||||||||
Financial assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
$
|
51,247
|
|
|
$
|
51,247
|
|
|
$
|
51,247
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Federal funds sold
|
73
|
|
|
73
|
|
|
—
|
|
|
73
|
|
|
—
|
|
|||||
Loans, net
|
1,338,392
|
|
|
1,326,932
|
|
|
—
|
|
|
—
|
|
|
1,326,932
|
|
|||||
Mortgage loans held for sale
|
16,757
|
|
|
17,052
|
|
|
—
|
|
|
17,052
|
|
|
—
|
|
|||||
Accrued interest receivable
|
7,488
|
|
|
7,488
|
|
|
—
|
|
|
7,488
|
|
|
—
|
|
|||||
Restricted equity securities
|
11,279
|
|
|
11,279
|
|
|
—
|
|
|
11,279
|
|
|
—
|
|
|||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
$
|
1,610,633
|
|
|
$
|
1,612,749
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,612,749
|
|
Accrued interest payable
|
1,610
|
|
|
1,610
|
|
|
—
|
|
|
1,610
|
|
|
—
|
|
|||||
Subordinate debentures
|
11,665
|
|
|
12,357
|
|
|
—
|
|
|
—
|
|
|
12,357
|
|
|||||
Federal Home Loan Bank advances
|
3,928
|
|
|
3,954
|
|
|
—
|
|
|
—
|
|
|
3,954
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
$
|
34,807
|
|
|
$
|
34,807
|
|
|
$
|
34,807
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Federal funds sold
|
371
|
|
|
371
|
|
|
—
|
|
|
371
|
|
|
—
|
|
|||||
Loans, net
|
1,220,184
|
|
|
1,206,574
|
|
|
—
|
|
|
—
|
|
|
1,206,574
|
|
|||||
Mortgage loans held for sale
|
15,823
|
|
|
15,871
|
|
|
—
|
|
|
15,871
|
|
|
—
|
|
|||||
Accrued interest receivable
|
8,214
|
|
|
8,214
|
|
|
—
|
|
|
8,214
|
|
|
—
|
|
|||||
Restricted equity securities
|
11,690
|
|
|
11,690
|
|
|
—
|
|
|
11,690
|
|
|
—
|
|
|||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
$
|
1,437,903
|
|
|
$
|
1,434,652
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,434,652
|
|
Accrued interest payable
|
1,063
|
|
|
1,063
|
|
|
—
|
|
|
1,063
|
|
|
—
|
|
|||||
Subordinate debentures
|
11,603
|
|
|
11,522
|
|
|
—
|
|
|
—
|
|
|
11,522
|
|
|||||
Federal Home Loan Bank advances
|
57,498
|
|
|
57,434
|
|
|
—
|
|
|
—
|
|
|
57,434
|
|
|
Shares
|
|
Weighted Average Exercise Price
|
|
Weighted Average Remaining Contractual Term
|
|
Aggregate Intrinsic Value
|
|||||
Outstanding at January 1, 2019
|
159,260
|
|
|
$
|
16.72
|
|
|
6.04 years
|
|
$
|
1,146
|
|
Granted
|
27,500
|
|
|
$
|
23.28
|
|
|
|
|
|
||
Exercised
|
(27,306)
|
|
|
$
|
13.15
|
|
|
|
|
|
||
Forfeited or expired
|
(2,753)
|
|
|
$
|
19.34
|
|
|
|
|
|
||
Outstanding at September 30, 2019
|
156,701
|
|
|
$
|
18.44
|
|
|
6.62 years
|
|
$
|
970
|
|
Exercisable at September 30, 2019
|
81,701
|
|
|
$
|
14.89
|
|
|
4.97 years
|
|
$
|
764
|
|
|
Shares
|
|
Weighted Average
Grant-Date Fair Value
|
|
Non-vested options at January 1, 2019
|
71,200
|
|
|
$5.28
|
Granted
|
27,500
|
|
|
$6.97
|
Vested
|
(20,947
|
)
|
|
$4.69
|
Forfeited
|
(2,753
|
)
|
|
$4.89
|
Non-vested options at September 30, 2019
|
75,000
|
|
|
$6.08
|
|
Shares
|
|
Weighted Average Grant-Date
Fair Value |
|||
Non-vested shares at January 1, 2019
|
110,660
|
|
|
$
|
24.28
|
|
Granted
|
9,500
|
|
|
22.01
|
||
Vested
|
(21,450
|
)
|
|
19.31
|
|
|
Forfeited
|
(7,750
|
)
|
|
23.25
|
||
Non-vested shares at September 30, 2019
|
90,960
|
|
|
$
|
25.31
|
|
|
Actual
Regulatory
Capital
|
|
Minimum Required
Capital Including
Capital Conservation
Buffer
|
|
To Be Well
Capitalized Under
Prompt Corrective
Action Provisions
|
|||||||||||||||
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
September 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Tier I leverage
|
$
|
171,789
|
|
|
9.85
|
%
|
|
$
|
69,762
|
|
|
4.00
|
%
|
|
$
|
87,203
|
|
|
5.00
|
%
|
Common equity tier 1
|
160,124
|
|
|
10.85
|
%
|
|
103,306
|
|
|
7.00
|
%
|
|
95,927
|
|
|
6.50
|
%
|
|||
Tier I risk-based capital
|
171,789
|
|
|
11.64
|
%
|
|
125,447
|
|
|
8.50
|
%
|
|
118,068
|
|
|
8.00
|
%
|
|||
Total risk-based capital
|
184,505
|
|
|
12.51
|
%
|
|
154,860
|
|
|
10.50
|
%
|
|
147,486
|
|
|
10.00
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Bank
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Tier I leverage
|
$
|
166,265
|
|
|
9.55
|
%
|
|
$
|
69,654
|
|
|
4.00
|
%
|
|
$
|
87,067
|
|
|
5.00
|
%
|
Common equity tier 1
|
166,265
|
|
|
11.29
|
%
|
|
103,082
|
|
|
7.00
|
%
|
|
95,719
|
|
|
6.50
|
%
|
|||
Tier I risk-based capital
|
166,265
|
|
|
11.29
|
%
|
|
125,171
|
|
|
8.50
|
%
|
|
117,808
|
|
|
8.00
|
%
|
|||
Total risk-based capital
|
178,981
|
|
|
12.15
|
%
|
|
154,623
|
|
|
10.50
|
%
|
|
147,260
|
|
|
10.00
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Tier I leverage
|
$
|
168,876
|
|
|
10.38
|
%
|
|
$
|
65,077
|
|
|
4.00
|
%
|
|
$
|
81,347
|
|
|
5.00
|
%
|
Common equity tier 1
|
157,273
|
|
|
11.59
|
%
|
|
86,507
|
|
|
6.38
|
%
|
|
88,203
|
|
|
6.50
|
%
|
|||
Tier I risk-based capital
|
168,876
|
|
|
12.44
|
%
|
|
106,905
|
|
|
7.88
|
%
|
|
108,602
|
|
|
8.00
|
%
|
|||
Total risk-based capital
|
180,193
|
|
|
13.28
|
%
|
|
133,991
|
|
|
9.88
|
%
|
|
135,688
|
|
|
10.00
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Bank
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Tier I leverage
|
$
|
165,308
|
|
|
10.17
|
%
|
|
$
|
65,018
|
|
|
4.00
|
%
|
|
$
|
81,272
|
|
|
5.00
|
%
|
Common equity tier 1
|
165,308
|
|
|
12.19
|
%
|
|
86,451
|
|
|
6.38
|
%
|
|
88,146
|
|
|
6.50
|
%
|
|||
Tier I risk-based capital
|
165,308
|
|
|
12.19
|
%
|
|
106,792
|
|
|
7.88
|
%
|
|
108,488
|
|
|
8.00
|
%
|
|||
Total risk-based capital
|
176,625
|
|
|
13.02
|
%
|
|
133,961
|
|
|
9.88
|
%
|
|
135,657
|
|
|
10.00
|
%
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Basic EPS Computation
|
|
|
|
|
|
|
|
||||||||
Net income attributable to common shareholders
|
$
|
4,000
|
|
|
$
|
4,082
|
|
|
$
|
12,063
|
|
|
$
|
9,962
|
|
Weighted average common shares outstanding
|
11,104,918
|
|
|
11,406,753
|
|
|
11,247,921
|
|
|
11,378,755
|
|
||||
Basic earnings per common share
|
$
|
0.36
|
|
|
$
|
0.36
|
|
|
$
|
1.07
|
|
|
$
|
0.88
|
|
Diluted EPS Computation
|
|
|
|
|
|
|
|
||||||||
Net income attributable to common shareholders
|
$
|
4,000
|
|
|
$
|
4,082
|
|
|
$
|
12,063
|
|
|
$
|
9,962
|
|
Weighted average common shares outstanding
|
11,104,918
|
|
|
11,406,753
|
|
|
11,247,921
|
|
|
11,378,755
|
|
||||
Dilutive effect of stock options, restricted shares and employee stock purchase plan
|
72,449
|
|
|
91,426
|
|
|
66,445
|
|
|
83,944
|
|
||||
Adjusted weighted average common shares outstanding
|
11,177,367
|
|
|
11,498,179
|
|
|
11,314,366
|
|
|
11,462,699
|
|
||||
Diluted earnings per common share
|
$
|
0.36
|
|
|
$
|
0.36
|
|
|
$
|
1.07
|
|
|
$
|
0.87
|
|
|
Three Months Ended
September 30, 2019 |
||||||||||||||
|
Retail Banking
|
|
Residential
Mortgage
Banking
|
|
Elimination
Entries
|
|
Consolidated
|
||||||||
Net interest income
|
$
|
13,910
|
|
|
$
|
154
|
|
|
$
|
—
|
|
|
$
|
14,064
|
|
Provision for loan losses
|
606
|
|
|
—
|
|
|
—
|
|
|
606
|
|
||||
Noninterest income
|
1,375
|
|
|
1,377
|
|
|
8
|
|
|
2,760
|
|
||||
Noninterest expense (excluding merger expense)
|
9,726
|
|
|
3,022
|
|
|
—
|
|
|
12,748
|
|
||||
Merger expense
|
299
|
|
|
—
|
|
|
—
|
|
|
299
|
|
||||
Income tax expense (benefit)
|
654
|
|
|
(97
|
)
|
|
—
|
|
|
557
|
|
||||
Net income (loss)
|
4,000
|
|
|
(1,394
|
)
|
|
8
|
|
|
2,614
|
|
||||
Noncontrolling interest in net loss of subsidiary
|
—
|
|
|
1,394
|
|
|
(8
|
)
|
|
1,386
|
|
||||
Net income attributable to common shareholders
|
$
|
4,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,000
|
|
|
Three Months Ended
September 30, 2018 |
||||||||||||||
|
Retail Banking
|
|
Residential Mortgage Banking
|
|
Elimination Entries
|
|
Consolidated
|
||||||||
Net interest income
|
$
|
13,295
|
|
|
$
|
171
|
|
|
$
|
—
|
|
|
$
|
13,466
|
|
Provision for loan losses
|
322
|
|
|
—
|
|
|
—
|
|
|
322
|
|
||||
Noninterest income
|
1,379
|
|
|
1,449
|
|
|
(51
|
)
|
|
2,777
|
|
||||
Noninterest expense (excluding merger expense)
|
9,614
|
|
|
2,466
|
|
|
—
|
|
|
12,080
|
|
||||
Merger expense
|
82
|
|
|
—
|
|
|
—
|
|
|
82
|
|
||||
Income tax expense (benefit)
|
574
|
|
|
(55
|
)
|
|
—
|
|
|
519
|
|
||||
Net income (loss)
|
4,082
|
|
|
(791
|
)
|
|
(51
|
)
|
|
3,240
|
|
||||
Noncontrolling interest in net loss of subsidiary
|
—
|
|
|
791
|
|
|
51
|
|
|
842
|
|
||||
Net income attributable to common shareholders
|
$
|
4,082
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,082
|
|
|
Nine Months Ended
September 30, 2019 |
||||||||||||||
|
Retail Banking
|
|
Residential Mortgage Banking
|
|
Elimination Entries
|
|
Consolidated
|
||||||||
Net interest income
|
$
|
40,986
|
|
|
$
|
352
|
|
|
$
|
—
|
|
|
$
|
41,338
|
|
Provision for loan losses
|
806
|
|
|
—
|
|
|
—
|
|
|
806
|
|
||||
Noninterest income
|
4,226
|
|
|
3,187
|
|
|
(17
|
)
|
|
7,396
|
|
||||
Noninterest expense (excluding merger expense)
|
30,300
|
|
|
8,317
|
|
|
—
|
|
|
38,617
|
|
||||
Merger expense
|
302
|
|
|
—
|
|
|
—
|
|
|
302
|
|
||||
Income tax expense (benefit)
|
1,741
|
|
|
(311
|
)
|
|
—
|
|
|
1,430
|
|
||||
Net income (loss)
|
12,063
|
|
|
(4,467
|
)
|
|
(17
|
)
|
|
7,579
|
|
||||
Noncontrolling interest in net loss of subsidiary
|
—
|
|
|
4,467
|
|
|
17
|
|
|
4,484
|
|
||||
Net income attributable to common shareholders
|
$
|
12,063
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
12,063
|
|
|
Nine Months Ended
September 30, 2018 |
||||||||||||||
|
Retail Banking
|
|
Residential Mortgage Banking
|
|
Elimination Entries
|
|
Consolidated
|
||||||||
Net interest income
|
$
|
39,529
|
|
|
$
|
723
|
|
|
$
|
—
|
|
|
$
|
40,252
|
|
Provision for loan losses
|
759
|
|
|
—
|
|
|
—
|
|
|
759
|
|
||||
Noninterest income
|
3,966
|
|
|
4,190
|
|
|
(134
|
)
|
|
8,022
|
|
||||
Noninterest expense (excluding merger expense)
|
28,454
|
|
|
7,169
|
|
|
—
|
|
|
35,623
|
|
||||
Merger expense
|
2,742
|
|
|
—
|
|
|
—
|
|
|
2,742
|
|
||||
Income tax expense (benefit)
|
1,578
|
|
|
(147
|
)
|
|
—
|
|
|
1,431
|
|
||||
Net income
|
9,962
|
|
|
(2,109
|
)
|
|
(134
|
)
|
|
7,719
|
|
||||
Noncontrolling interest in net income of subsidiary
|
—
|
|
|
2,109
|
|
|
134
|
|
|
2,243
|
|
||||
Net income attributable to common shareholders
|
$
|
9,962
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9,962
|
|
Notional amounts
|
$
|
60,000
|
|
Weighted average pay rates
|
3.338
|
%
|
|
Weighted average receive rates
|
2.460
|
%
|
|
Weighted average maturity
|
3.75 years
|
|
|
Unrealized losses
|
$
|
3,328
|
|
|
Amount of Gain (Loss) Recognized in OCI
(Effective Portion) |
|
Amount of Gain (Loss) Reclassified from OCI to Interest Income
|
|
Amount of Gain (Loss) Recognized in Other Noninterest Income (Ineffective Portion)
|
||||||
September 30, 2019
|
|
|
|
|
|
||||||
Interest rate contracts
|
$
|
(2,175
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||
|
Notional Amount
|
|
Fair Value
|
|
Notional Amount
|
|
Fair Value
|
||||||||
Included in other liabilities:
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps related to:
|
|
|
|
|
|
|
|
||||||||
Subordinate debentures
|
$
|
10,000
|
|
|
$
|
532
|
|
|
$
|
10,000
|
|
|
$
|
174
|
|
Short-term interest bearing liabilities
|
50,000
|
|
|
2,796
|
|
|
50,000
|
|
|
979
|
|
||||
Total included in other liabilities
|
$
|
60,000
|
|
|
$
|
3,328
|
|
|
$
|
60,000
|
|
|
$
|
1,153
|
|
Interest rate contracts
|
Location
|
|
September 30, 2019
|
|
September 30, 2018
|
||||
Change in fair value on interest rate swaps hedging investments
|
Interest income
|
|
$
|
(1,382
|
)
|
|
$
|
950
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||
|
Notional Amount
|
|
Fair Value
|
|
Notional Amount
|
|
Fair Value
|
||||||||
Included in other assets:
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps related to investments
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
16,902
|
|
|
$
|
467
|
|
Total included in other assets
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
16,902
|
|
|
$
|
467
|
|
|
|
|
|
|
|
|
|
||||||||
Included in other liabilities:
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps related to investments
|
19,605
|
|
|
945
|
|
|
4,203
|
|
|
30
|
|
||||
Total included in other liabilities
|
$
|
19,605
|
|
|
$
|
945
|
|
|
$
|
4,203
|
|
|
$
|
30
|
|
Calculation of Purchase Price
|
|
|
||
Shares of Community First common stock outstanding as of December 31, 2017
|
|
5,025,884
|
|
|
Exchange ratio for Reliant Bancorp, Inc. common stock
|
|
0.481
|
|
|
Share conversion
|
|
2,417,450
|
|
|
Reliant Bancorp, Inc. common stock shares issued
|
|
2,416,444
|
|
|
Reliant Bancorp, Inc. share price at December 29, 2017
|
|
$
|
25.64
|
|
Value of Reliant Bancorp, Inc. common stock shares issued
|
|
$
|
61,958
|
|
Value of fractional shares
|
|
$
|
25
|
|
Estimated fair value of Community First, Inc.
|
|
$
|
61,983
|
|
Allocation of Purchase Price
|
|
|
||
Total consideration above
|
|
$
|
61,983
|
|
Fair value of assets acquired and liabilities assumed
|
|
|
||
Cash and cash equivalents
|
|
(33,128
|
)
|
|
Time deposits in other financial institutions
|
|
(23,309
|
)
|
|
Investment securities available for sale
|
|
(69,078
|
)
|
|
Loans, net of unearned income
|
|
(313,040
|
)
|
|
Mortgage loans held for sale, net
|
|
(910
|
)
|
|
Accrued interest receivable
|
|
(1,165
|
)
|
|
Premises and equipment
|
|
(9,585
|
)
|
|
Restricted equity securities
|
|
(1,726
|
)
|
|
Cash surrender value of life insurance contracts
|
|
(10,664
|
)
|
|
Other real estate owned
|
|
(1,650
|
)
|
|
Deferred tax asset, net
|
|
(4,885
|
)
|
|
Core deposit intangible
|
|
(7,888
|
)
|
|
Other assets
|
|
(1,795
|
)
|
|
Deposits—noninterest-bearing
|
|
80,395
|
|
|
Deposits—interest-bearing
|
|
352,100
|
|
|
Other borrowings
|
|
11,522
|
|
|
Payables and other liabilities
|
|
5,061
|
|
|
Net liabilities assumed (net assets acquired)
|
|
(29,745
|
)
|
|
Goodwill
|
|
$
|
32,238
|
|
•
|
Net income attributable to common shareholders totaled $12.1 million, or $1.07 per diluted common share, for the nine months ended September 30, 2019 compared to $10.0 million, or $0.87 per diluted common share, during same period in 2018.
|
•
|
Loans increased $119.5 million for the nine months ended September 30, 2019.
|
•
|
Deposits increased $172.7 million for the nine months ended September 30, 2019.
|
•
|
Asset quality remained strong with nonperforming assets to total assets of just 0.45 percent.
|
•
|
grew consolidated total assets from $1,125.0 million to $1,636.0 million after giving effect to purchase accounting;
|
•
|
increased total loans from $762.5 million to $1,075.5 million;
|
•
|
increased total deposits from $883.5 million to $1,316.9 million; and
|
•
|
expanded its employee base from 167 to 272 full time equivalent employees.
|
|
Three Months Ended
September 30, 2019 |
|
Three Months Ended
September 30, 2018 |
|
Change
|
||||||||||||||||||||||
|
Average Balances
|
Rates / Yields (%)
|
Interest Income / Expense
|
|
Average Balances
|
Rates / Yields (%)
|
Interest Income / Expense
|
|
Due to Volume
|
Due to Rate
|
Total
|
||||||||||||||||
Interest earning assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Loans
|
$
|
1,312,153
|
|
5.12
|
|
$
|
16,934
|
|
|
$
|
1,144,307
|
|
5.01
|
|
$
|
14,445
|
|
|
$
|
2,165
|
|
$
|
324
|
|
$
|
2,489
|
|
Loan fees
|
—
|
|
0.26
|
|
870
|
|
|
—
|
|
0.27
|
|
781
|
|
|
89
|
|
—
|
|
89
|
|
|||||||
Loans with fees
|
1,312,153
|
|
5.38
|
|
17,804
|
|
|
1,144,307
|
|
5.28
|
|
15,226
|
|
|
2,254
|
|
324
|
|
2,578
|
|
|||||||
Mortgage loans held for sale
|
18,271
|
|
5.71
|
|
263
|
|
|
22,464
|
|
5.19
|
|
294
|
|
|
(172
|
)
|
141
|
|
(31
|
)
|
|||||||
Deposits with banks
|
33,410
|
|
1.96
|
|
165
|
|
|
24,570
|
|
1.53
|
|
95
|
|
|
39
|
|
31
|
|
70
|
|
|||||||
Investment securities - taxable
|
73,115
|
|
2.98
|
|
549
|
|
|
70,389
|
|
2.33
|
|
414
|
|
|
16
|
|
119
|
|
135
|
|
|||||||
Investment securities - tax-exempt
|
220,233
|
|
3.60
|
|
1,999
|
|
|
229,934
|
|
3.74
|
|
2,168
|
|
|
(89
|
)
|
(79
|
)
|
(169
|
)
|
|||||||
Federal funds sold and other
|
12,300
|
|
5.03
|
|
156
|
|
|
12,760
|
|
5.75
|
|
185
|
|
|
(6
|
)
|
(23
|
)
|
(29
|
)
|
|||||||
Total earning assets
|
1,669,482
|
|
4.98
|
|
20,937
|
|
|
1,504,424
|
|
4.85
|
|
18,382
|
|
|
2,042
|
|
513
|
|
2,555
|
|
|||||||
Nonearning assets
|
136,973
|
|
|
|
|
139,972
|
|
|
|
|
|
|
|
||||||||||||||
Total assets
|
$
|
1,806,455
|
|
|
|
|
$
|
1,644,396
|
|
|
|
|
|
|
|
||||||||||||
Interest bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest bearing demand
|
142,702
|
|
0.23
|
|
81
|
|
|
143,057
|
|
0.28
|
|
102
|
|
|
—
|
|
(21
|
)
|
(21
|
)
|
|||||||
Savings and money market
|
350,440
|
|
1.10
|
|
973
|
|
|
339,487
|
|
0.77
|
|
657
|
|
|
22
|
|
294
|
|
316
|
|
|||||||
Time deposits - retail
|
540,688
|
|
2.17
|
|
2,956
|
|
|
527,930
|
|
1.60
|
|
2,128
|
|
|
53
|
|
775
|
|
828
|
|
|||||||
Time deposits - wholesale
|
294,750
|
|
2.52
|
|
1,872
|
|
|
87,262
|
|
1.88
|
|
414
|
|
|
1,275
|
|
183
|
|
1,458
|
|
|||||||
Total interest bearing deposits
|
1,328,580
|
|
1.76
|
|
5,882
|
|
|
1,097,736
|
|
1.19
|
|
3,301
|
|
|
1,350
|
|
1,231
|
|
2,581
|
|
|||||||
Federal Home Loan Bank advances
|
14,216
|
|
1.84
|
|
66
|
|
|
102,731
|
|
2.34
|
|
606
|
|
|
(433
|
)
|
(107
|
)
|
(540
|
)
|
|||||||
Subordinated debt
|
11,655
|
|
6.77
|
|
199
|
|
|
11,577
|
|
6.75
|
|
197
|
|
|
1
|
|
1
|
|
2
|
|
|||||||
Total borrowed funds
|
25,871
|
|
4.06
|
|
265
|
|
|
114,308
|
|
2.79
|
|
803
|
|
|
(431
|
)
|
(107
|
)
|
(538
|
)
|
|||||||
Total interest-bearing liabilities
|
1,354,451
|
|
1.80
|
|
6,147
|
|
|
1,212,044
|
|
1.34
|
|
4,104
|
|
|
919
|
|
1,124
|
|
2,043
|
|
|||||||
Net interest rate spread (%) / Net interest income ($)
|
|
3.18
|
|
$
|
14,790
|
|
|
|
3.51
|
|
$
|
14,278
|
|
|
$
|
1,123
|
|
$
|
(612
|
)
|
$
|
512
|
|
||||
Noninterest bearing deposits
|
227,502
|
|
(0.26
|
)
|
|
|
221,107
|
|
(0.20
|
)
|
|
|
|
|
|
||||||||||||
Other noninterest bearing liabilities
|
7,415
|
|
|
|
|
7,344
|
|
|
|
|
|
|
|
||||||||||||||
Stockholder's equity
|
217,087
|
|
|
|
|
203,901
|
|
|
|
|
|
|
|
||||||||||||||
Total liabilities and stockholders' equity
|
$
|
1,806,455
|
|
|
|
|
$
|
1,644,396
|
|
|
|
|
|
|
|
||||||||||||
Cost of funds
|
|
1.54
|
|
|
|
|
1.14
|
|
|
|
|
|
|
||||||||||||||
Net interest margin
|
|
3.51
|
|
|
|
|
3.77
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2019 |
|
Nine Months Ended
September 30, 2018 |
|
Change
|
||||||||||||||||||||||
|
Average Balances
|
Rates / Yields (%)
|
Interest Income / Expense
|
|
Average Balances
|
Rates / Yields (%)
|
Interest Income / Expense
|
|
Due to Volume
|
Due to Rate
|
Total
|
||||||||||||||||
Interest earning assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Loans
|
$
|
1,275,834
|
|
5.15
|
|
$
|
49,181
|
|
|
$
|
1,117,743
|
|
4.88
|
|
$
|
40,770
|
|
|
$
|
6,045
|
|
$
|
2,365
|
|
$
|
8,410
|
|
Loan fees
|
—
|
|
0.25
|
|
2,358
|
|
|
—
|
|
0.26
|
|
2,137
|
|
|
221
|
|
—
|
|
221
|
|
|||||||
Loans with fees
|
1,275,834
|
|
5.40
|
|
51,539
|
|
|
1,117,743
|
|
5.14
|
|
42,907
|
|
|
6,266
|
|
2,365
|
|
8,631
|
|
|||||||
Mortgage loans held for sale
|
14,534
|
|
5.65
|
|
614
|
|
|
28,636
|
|
5.14
|
|
1,101
|
|
|
(648
|
)
|
161
|
|
(487
|
)
|
|||||||
Deposits with banks
|
30,487
|
|
1.75
|
|
399
|
|
|
36,837
|
|
1.35
|
|
371
|
|
|
(98
|
)
|
126
|
|
28
|
|
|||||||
Investment securities - taxable
|
74,330
|
|
2.95
|
|
1,639
|
|
|
70,276
|
|
2.61
|
|
1,374
|
|
|
81
|
|
184
|
|
265
|
|
|||||||
Investment securities - tax-exempt
|
223,596
|
|
3.75
|
|
6,264
|
|
|
226,601
|
|
3.69
|
|
6,258
|
|
|
(120
|
)
|
126
|
|
6
|
|
|||||||
Federal funds sold and other
|
12,751
|
|
5.44
|
|
519
|
|
|
11,389
|
|
5.85
|
|
498
|
|
|
72
|
|
(51
|
)
|
21
|
|
|||||||
Total earning assets
|
1,631,532
|
|
5.00
|
|
60,974
|
|
|
1,491,482
|
|
4.71
|
|
52,509
|
|
|
5,554
|
|
2,911
|
|
8,465
|
|
|||||||
Nonearning assets
|
138,926
|
|
|
|
|
137,606
|
|
|
|
|
|
|
|
||||||||||||||
Total assets
|
$
|
1,770,458
|
|
|
|
|
$
|
1,629,088
|
|
|
|
|
|
|
|
||||||||||||
Interest bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest bearing demand
|
144,427
|
|
0.26
|
|
278
|
|
|
147,022
|
|
0.24
|
|
263
|
|
|
(7
|
)
|
22
|
|
15
|
|
|||||||
Savings and money market
|
374,876
|
|
1.12
|
|
3,154
|
|
|
347,184
|
|
0.66
|
|
1,709
|
|
|
149
|
|
1,296
|
|
1,445
|
|
|||||||
Time deposits - retail
|
576,568
|
|
2.12
|
|
9,139
|
|
|
520,717
|
|
1.45
|
|
5,640
|
|
|
659
|
|
2,840
|
|
3,499
|
|
|||||||
Time deposits - wholesale
|
191,133
|
|
2.60
|
|
3,713
|
|
|
91,466
|
|
1.60
|
|
1,097
|
|
|
1,662
|
|
954
|
|
2,616
|
|
|||||||
Total interest bearing deposits
|
1,287,004
|
|
1.69
|
|
16,284
|
|
|
1,106,389
|
|
1.05
|
|
8,709
|
|
|
2,463
|
|
5,112
|
|
7,575
|
|
|||||||
Federal Home Loan Bank advances and other
|
31,378
|
|
2.28
|
|
534
|
|
|
84,176
|
|
2.03
|
|
1,275
|
|
|
(971
|
)
|
230
|
|
(741
|
)
|
|||||||
Subordinated debt
|
11,634
|
|
6.78
|
|
590
|
|
|
11,556
|
|
6.09
|
|
526
|
|
|
4
|
|
60
|
|
64
|
|
|||||||
Total borrowed funds
|
43,012
|
|
3.49
|
|
1,124
|
|
|
95,732
|
|
2.52
|
|
1,801
|
|
|
(967
|
)
|
290
|
|
(677
|
)
|
|||||||
Total interest-bearing liabilities
|
1,330,016
|
|
1.75
|
|
17,408
|
|
|
1,202,121
|
|
1.17
|
|
10,510
|
|
|
1,496
|
|
5,402
|
|
6,898
|
|
|||||||
Net interest rate spread (%) / Net interest income ($)
|
|
3.25
|
|
$
|
43,566
|
|
|
|
3.54
|
|
$
|
41,999
|
|
|
$
|
4,058
|
|
$
|
(2,491
|
)
|
$
|
1,567
|
|
||||
Noninterest bearing deposits
|
219,106
|
|
(0.25
|
)
|
|
|
217,957
|
|
(0.18
|
)
|
|
|
|
|
|
||||||||||||
Other noninterest bearing liabilities
|
8,229
|
|
|
|
|
6,464
|
|
|
|
|
|
|
|
||||||||||||||
Stockholder's equity
|
213,107
|
|
|
|
|
202,546
|
|
|
|
|
|
|
|
||||||||||||||
Total liabilities and stockholders' equity
|
$
|
1,770,458
|
|
|
|
|
$
|
1,629,088
|
|
|
|
|
|
|
|
||||||||||||
Cost of funds
|
|
1.50
|
|
|
|
|
0.99
|
|
|
|
|
|
|
||||||||||||||
Net interest margin
|
|
3.57
|
|
|
|
|
3.76
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
Percent
Increase
|
Nine Months Ended September 30,
|
Percent
Increase |
||||||||||||
|
2019
|
2018
|
(Decrease)
|
2019
|
2018
|
(Decrease)
|
||||||||||
Noninterest Income
|
|
|
|
|
|
|
||||||||||
Service charges and fees
|
$
|
976
|
|
$
|
833
|
|
17.2
|
%
|
$
|
2,796
|
|
$
|
2,504
|
|
11.7
|
%
|
Gains on mortgage loans sold, net
|
1,385
|
|
1,399
|
|
(1.0
|
)%
|
3,170
|
|
4,061
|
|
(21.9
|
)%
|
||||
Securities gains, net
|
—
|
|
18
|
|
(100.0
|
)%
|
306
|
|
43
|
|
611.6
|
%
|
||||
Gain on sale of other real estate
|
—
|
|
150
|
|
(100.0
|
)%
|
—
|
|
259
|
|
(100.0
|
)%
|
||||
Gain (loss) on disposal of premises and equipment
|
—
|
|
16
|
|
(100.0
|
)%
|
—
|
|
16
|
|
(100.0
|
)%
|
||||
Other noninterest income:
|
|
|
|
|
|
|
||||||||||
Bank-owned life insurance
|
283
|
|
293
|
|
(3.4
|
)%
|
838
|
|
893
|
|
(6.2
|
)%
|
||||
Brokerage revenue
|
13
|
|
7
|
|
85.7
|
%
|
33
|
|
91
|
|
(63.7
|
)%
|
||||
Miscellaneous noninterest income
|
103
|
|
61
|
|
68.9
|
%
|
253
|
|
155
|
|
63.2
|
%
|
||||
Total other noninterest income
|
399
|
|
361
|
|
10.5
|
%
|
1,124
|
|
1,139
|
|
(1.3
|
)%
|
||||
Total noninterest income
|
$
|
2,760
|
|
$
|
2,777
|
|
(0.6
|
)%
|
$
|
7,396
|
|
$
|
8,022
|
|
(7.8
|
)%
|
|
Three Months Ended September 30,
|
Percent
Increase
|
Nine Months Ended
September 30, |
Percent
Increase |
||||||||||||
|
2019
|
2018
|
(Decrease)
|
2019
|
2018
|
(Decrease)
|
||||||||||
Noninterest Expense
|
|
|
|
|
|
|
||||||||||
Salaries and employee benefits
|
$
|
7,634
|
|
$
|
6,913
|
|
10.4
|
%
|
$
|
22,605
|
|
$
|
20,480
|
|
10.4
|
%
|
Occupancy
|
1,359
|
|
1,234
|
|
10.1
|
%
|
4,069
|
|
3,673
|
|
10.8
|
%
|
||||
Information technology
|
1,553
|
|
1,315
|
|
18.1
|
%
|
4,538
|
|
3,913
|
|
16.0
|
%
|
||||
Advertising and public relations
|
387
|
|
183
|
|
111.5
|
%
|
916
|
|
413
|
|
121.8
|
%
|
||||
Audit, legal and consulting
|
350
|
|
588
|
|
(40.5
|
)%
|
1,836
|
|
2,027
|
|
(9.4
|
)%
|
||||
Federal deposit insurance
|
(96
|
)
|
210
|
|
(145.7
|
)%
|
348
|
|
630
|
|
(44.8
|
)%
|
||||
Merger expenses
|
299
|
|
82
|
|
264.6
|
%
|
302
|
|
2,742
|
|
(89.0
|
)%
|
||||
Other operating
|
1,561
|
|
1,637
|
|
(4.6
|
)%
|
4,305
|
|
4,487
|
|
(4.1
|
)%
|
||||
Total noninterest expense
|
$
|
13,047
|
|
$
|
12,162
|
|
7.3
|
%
|
$
|
38,919
|
|
$
|
38,365
|
|
1.4
|
%
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||
Commercial, Industrial and Agricultural
|
$
|
231,935
|
|
|
17.2
|
%
|
|
$
|
213,850
|
|
|
17.4
|
%
|
Real estate:
|
|
|
|
|
|
|
|
||||||
1-4 Family Residential
|
236,332
|
|
|
17.5
|
%
|
|
225,863
|
|
|
18.3
|
%
|
||
1-4 Family HELOC
|
93,176
|
|
|
6.9
|
%
|
|
88,112
|
|
|
7.2
|
%
|
||
Multifamily and Commercial
|
520,297
|
|
|
38.5
|
%
|
|
447,840
|
|
|
36.4
|
%
|
||
Construction, Land Development and Farmland
|
238,082
|
|
|
17.6
|
%
|
|
220,801
|
|
|
17.9
|
%
|
||
Consumer
|
17,448
|
|
|
1.3
|
%
|
|
20,495
|
|
|
1.7
|
%
|
||
Other
|
13,252
|
|
|
1.0
|
%
|
|
14,106
|
|
|
1.1
|
%
|
||
|
1,350,522
|
|
|
100.0
|
%
|
|
1,231,067
|
|
|
100.0
|
%
|
||
Less:
|
|
|
|
|
|
|
|
||||||
Deferred loan fees (costs)
|
(161
|
)
|
|
|
|
(9
|
)
|
|
|
||||
Allowance for possible loan losses
|
12,291
|
|
|
|
|
10,892
|
|
|
|
||||
Loans, net
|
$
|
1,338,392
|
|
|
|
|
$
|
1,220,184
|
|
|
|
|
September 30, 2019
|
||
|
|
||
Commercial, Industrial and Agricultural
|
$
|
—
|
|
Real estate:
|
|
||
1-4 Family Residential
|
237
|
|
|
1-4 Family HELOC
|
—
|
|
|
Multifamily and Commercial
|
220
|
|
|
Construction, Land Development and Farmland
|
1,030
|
|
|
Consumer
|
—
|
|
|
Other
|
—
|
|
|
Total gross PCI loans
|
1,487
|
|
|
Less:
|
|
||
Remaining purchase discount
|
246
|
|
|
Allowance for possible loan losses
|
—
|
|
|
Loans, net
|
$
|
1,241
|
|
|
One Year or
Less
|
|
One to Five
Years
|
|
Over Five
Years
|
|
Total
|
||||||||
Gross loans
|
$
|
436,644
|
|
|
$
|
581,508
|
|
|
$
|
332,370
|
|
|
$
|
1,350,522
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed interest rate
|
|
|
|
|
|
|
$
|
770,407
|
|
||||||
Variable interest rate
|
|
|
|
|
|
|
580,115
|
|
|||||||
Total
|
|
|
|
|
|
|
$
|
1,350,522
|
|
|
September 30, 2019
|
|
September 30, 2018
|
||||
Beginning Balance, January 1, 2019 and 2018
|
$
|
10,892
|
|
|
$
|
9,731
|
|
Loans charged off:
|
|
|
|
||||
Commercial, Industrial and Agricultural
|
(170
|
)
|
|
(308
|
)
|
||
Real estate:
|
|
|
|
||||
1-4 Family Residential
|
(29
|
)
|
|
(36
|
)
|
||
1-4 Family HELOC
|
—
|
|
|
(6
|
)
|
||
Multifamily and Commercial
|
—
|
|
|
(76
|
)
|
||
Construction, Land Development and Farmland
|
—
|
|
|
(144
|
)
|
||
Consumer
|
(37
|
)
|
|
(24
|
)
|
||
Other
|
(34
|
)
|
|
(37
|
)
|
||
Total loans charged off
|
(270
|
)
|
|
(631
|
)
|
||
Recoveries on loans previously charged off:
|
|
|
|
||||
Commercial, Industrial and Agricultural
|
342
|
|
|
530
|
|
||
Real estate:
|
|
|
|
||||
1-4 Family Residential
|
220
|
|
|
11
|
|
||
1-4 Family HELOC
|
11
|
|
|
7
|
|
||
Multifamily and Commercial
|
62
|
|
|
215
|
|
||
Construction, Land Development and Farmland
|
—
|
|
|
44
|
|
||
Consumer
|
28
|
|
|
29
|
|
||
Other
|
200
|
|
|
3
|
|
||
Total loan recoveries
|
863
|
|
|
839
|
|
||
Net recoveries (charge-offs)
|
593
|
|
|
208
|
|
||
Provision for loan losses
|
806
|
|
|
759
|
|
||
Total allowance at end of period
|
$
|
12,291
|
|
|
$
|
10,698
|
|
Gross loans at end of period (1)
|
$
|
1,350,522
|
|
|
$
|
1,194,198
|
|
Average gross loans (1)
|
$
|
1,275,834
|
|
|
$
|
1,117,743
|
|
Allowance to total loans
|
0.91
|
%
|
|
0.90
|
%
|
||
Net recoveries (charge-offs) to average loans (annualized)
|
0.06
|
%
|
|
0.02
|
%
|
(1)
|
Loan balances exclude loans held for sale.
|
|
September 30, 2019
|
|
September 30, 2018
|
||||||||||||||||
|
Amount
|
|
% of
Allowance
To Total
|
|
% of Loan Type to Total Loans
|
|
Amount
|
|
% of
Allowance
To Total
|
|
% of Loan Type to Total Loans
|
||||||||
Commercial, Industrial and Agricultural
|
$
|
2,299
|
|
|
18.7
|
%
|
|
17.2
|
%
|
|
$
|
2,026
|
|
|
18.9
|
%
|
|
17.6
|
%
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
1-4 Family Residential
|
1,383
|
|
|
11.3
|
%
|
|
17.5
|
%
|
|
1,321
|
|
|
12.3
|
%
|
|
19.1
|
%
|
||
1-4 Family HELOC
|
704
|
|
|
5.7
|
%
|
|
6.9
|
%
|
|
620
|
|
|
5.8
|
%
|
|
7.3
|
%
|
||
Multifamily and Commercial
|
5,188
|
|
|
42.2
|
%
|
|
38.5
|
%
|
|
4,118
|
|
|
38.7
|
%
|
|
36.3
|
%
|
||
Construction, Land Development and Farmland
|
2,513
|
|
|
20.4
|
%
|
|
17.6
|
%
|
|
2,390
|
|
|
22.3
|
%
|
|
16.7
|
%
|
||
Consumer
|
170
|
|
|
1.4
|
%
|
|
1.3
|
%
|
|
186
|
|
|
1.7
|
%
|
|
1.8
|
%
|
||
Other
|
34
|
|
|
0.3
|
%
|
|
1.0
|
%
|
|
37
|
|
|
0.3
|
%
|
|
1.2
|
%
|
||
|
$
|
12,291
|
|
|
100.0
|
%
|
|
100.0
|
%
|
|
$
|
10,698
|
|
|
100.0
|
%
|
|
100.0
|
%
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
Nonaccrual loans
|
$
|
4,380
|
|
|
$
|
4,194
|
|
Past due loans 90 days or more and still accruing interest
|
121
|
|
|
6
|
|
||
Restructured loans
|
1,812
|
|
|
2,469
|
|
||
Total nonperforming loans
|
6,313
|
|
|
6,669
|
|
||
Foreclosed real estate ("OREO")
|
1,943
|
|
|
1,000
|
|
||
Total nonperforming assets
|
$
|
8,256
|
|
|
$
|
7,669
|
|
Total nonperforming loans as a percentage of total loans
|
0.47
|
%
|
|
0.54
|
%
|
||
Total nonperforming assets as a percentage of total assets
|
0.45
|
%
|
|
0.44
|
%
|
||
Allowance for loan losses as a percentage of nonperforming loans
|
194.69
|
%
|
|
163.32
|
%
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||||||
|
Amortized
Cost
|
|
Fair Value
|
|
% of Total
|
|
Amortized
Cost
|
|
Fair Value
|
|
% of Total
|
||||||||
U.S.Treasury and other U.S. government agencies
|
$
|
310
|
|
|
310
|
|
|
0.10
|
%
|
|
$
|
568
|
|
|
554
|
|
|
0.19
|
%
|
State and municipal
|
210,537
|
|
|
223,016
|
|
|
75.01
|
%
|
|
232,589
|
|
|
229,298
|
|
|
77.38
|
%
|
||
Corporate bonds
|
7,880
|
|
|
7,822
|
|
|
2.63
|
%
|
|
3,130
|
|
|
3,017
|
|
|
1.02
|
%
|
||
Mortgage backed securities
|
39,143
|
|
|
39,118
|
|
|
13.16
|
%
|
|
32,172
|
|
|
31,958
|
|
|
10.78
|
%
|
||
Asset backed securities
|
27,577
|
|
|
27,044
|
|
|
9.10
|
%
|
|
28,635
|
|
|
27,996
|
|
|
9.45
|
%
|
||
Time deposits
|
—
|
|
|
—
|
|
|
—
|
%
|
|
3,500
|
|
|
3,500
|
|
|
1.18
|
%
|
||
Total
|
$
|
285,447
|
|
|
297,310
|
|
|
100.00
|
%
|
|
$
|
300,594
|
|
|
296,323
|
|
|
100.00
|
%
|
|
Amortized
Cost
|
|
Estimated
Fair Value
|
||||
Due within one year
|
$
|
500
|
|
|
$
|
499
|
|
Due in one to five years
|
1,035
|
|
|
1,035
|
|
||
Due in five to ten years
|
12,076
|
|
|
12,447
|
|
||
Due after ten years
|
205,116
|
|
|
217,167
|
|
||
Mortgage backed securities
|
39,143
|
|
|
39,118
|
|
||
Asset backed securities
|
27,577
|
|
|
27,044
|
|
||
Total
|
$
|
285,447
|
|
|
$
|
297,310
|
|
|
September 30, 2019
|
||
Twelve months or less
|
$
|
258,872
|
|
Over twelve months through three years
|
18,053
|
|
|
Over three years
|
5,169
|
|
|
Total
|
$
|
282,094
|
|
Instantaneous, Parallel Change in Prevailing Interest Rates Equal to
|
|
Estimated Change in Net Interest Income and Policy of Maximum
Percentage Decline in Net Interest Income
|
||||||
|
|
Next 12
|
|
Next 24
|
||||
|
|
Months
|
|
Months
|
||||
|
|
Estimate
|
|
Policy
|
|
Estimate
|
|
Policy
|
-200 bp
|
|
1.0%
|
|
(15)%
|
|
(2.5)%
|
|
(15)%
|
-100 bp
|
|
1.1%
|
|
(10)%
|
|
(0.8)%
|
|
(10)%
|
+100 bp
|
|
(0.3)%
|
|
(10)%
|
|
(0.1)%
|
|
(10)%
|
+200 bp
|
|
0.2%
|
|
(15)%
|
|
0.5%
|
|
(15)%
|
+300 bp
|
|
0.8%
|
|
(20)%
|
|
1.1%
|
|
(20)%
|
+400 bp
|
|
1.0%
|
|
(25)%
|
|
1.3%
|
|
(25)%
|
Instantaneous, Parallel Change in Prevailing
Interest Rates Equal to
|
|
Maximum Percentage Decline in Economic Value of
Equity from the Economic Value of Equity at
Currently Prevailing Interest Rates
|
+100 bp
|
|
15%
|
+200 bp
|
|
25%
|
+300 bp
|
|
30%
|
+400 bp
|
|
35%
|
Non-parallel shifts
|
|
35%
|
Scheduled Maturities
|
|
Amount
|
|
Weighted
Average
Rates
|
||
2019
|
|
$
|
—
|
|
|
—%
|
2020
|
|
—
|
|
|
—%
|
|
2021
|
|
334
|
|
|
2.73%
|
|
2022
|
|
609
|
|
|
1.22%
|
|
2023
|
|
2,403
|
|
|
1.94%
|
|
Thereafter
|
|
582
|
|
|
2.48%
|
|
|
|
$
|
3,928
|
|
|
1.97%
|
|
Actual Regulatory Capital
|
|
Minimum Required Capital
Including Capital
Conservation Buffer
|
|
To Be Well Capitalized
Under Prompt Corrective
Action Provisions
|
|||||||||||||||
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
September 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Tier I leverage
|
$
|
171,789
|
|
|
9.85
|
%
|
|
$
|
69,762
|
|
|
4.00
|
%
|
|
$
|
87,203
|
|
|
5.00
|
%
|
Common equity Tier 1
|
160,124
|
|
|
10.85
|
%
|
|
103,306
|
|
|
7.00
|
%
|
|
95,927
|
|
|
6.50
|
%
|
|||
Tier I risk-based capital
|
171,789
|
|
|
11.64
|
%
|
|
125,447
|
|
|
8.50
|
%
|
|
118,068
|
|
|
8.00
|
%
|
|||
Total risk-based capital
|
184,505
|
|
|
12.51
|
%
|
|
154,860
|
|
|
10.50
|
%
|
|
147,486
|
|
|
10.00
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Bank
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Tier I leverage
|
$
|
166,265
|
|
|
9.55
|
%
|
|
$
|
69,654
|
|
|
4.00
|
%
|
|
$
|
87,067
|
|
|
5.00
|
%
|
Common equity Tier 1
|
166,265
|
|
|
11.29
|
%
|
|
103,082
|
|
|
7.00
|
%
|
|
95,719
|
|
|
6.50
|
%
|
|||
Tier I risk-based capital
|
166,265
|
|
|
11.29
|
%
|
|
125,171
|
|
|
8.50
|
%
|
|
117,808
|
|
|
8.00
|
%
|
|||
Total risk-based capital
|
178,981
|
|
|
12.15
|
%
|
|
154,623
|
|
|
10.50
|
%
|
|
147,260
|
|
|
10.00
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Tier I leverage
|
$
|
168,876
|
|
|
10.38
|
%
|
|
$
|
65,077
|
|
|
4.00
|
%
|
|
$
|
81,347
|
|
|
5.00
|
%
|
Common equity Tier 1
|
157,273
|
|
|
11.59
|
%
|
|
86,507
|
|
|
6.38
|
%
|
|
88,203
|
|
|
6.50
|
%
|
|||
Tier I risk-based capital
|
168,876
|
|
|
12.44
|
%
|
|
106,905
|
|
|
7.88
|
%
|
|
108,602
|
|
|
8.00
|
%
|
|||
Total risk-based capital
|
180,193
|
|
|
13.28
|
%
|
|
133,991
|
|
|
9.88
|
%
|
|
135,688
|
|
|
10.00
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Bank
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Tier I leverage
|
$
|
165,308
|
|
|
10.17
|
%
|
|
$
|
65,018
|
|
|
4.00
|
%
|
|
$
|
81,272
|
|
|
5.00
|
%
|
Common equity Tier 1
|
165,308
|
|
|
12.19
|
%
|
|
86,451
|
|
|
6.38
|
%
|
|
88,146
|
|
|
6.50
|
%
|
|||
Tier I risk-based capital
|
165,308
|
|
|
12.19
|
%
|
|
106,792
|
|
|
7.88
|
%
|
|
108,488
|
|
|
8.00
|
%
|
|||
Total risk-based capital
|
176,625
|
|
|
13.02
|
%
|
|
133,961
|
|
|
9.88
|
%
|
|
135,657
|
|
|
10.00
|
%
|
|
September 30, 2019
|
||
Unused lines of credit
|
$
|
291,134
|
|
Standby letters of credit
|
17,896
|
|
|
Total commitments
|
$
|
309,030
|
|
•
|
the loss of key employees;
|
•
|
the disruption of operations and business;
|
•
|
inability to maintain and increase competitive presence;
|
•
|
loan and deposit attrition, customer loss and revenue loss;
|
•
|
possible inconsistencies in standards, control procedures and policies;
|
•
|
unexpected problems with costs, operations, personnel, technology and credit; and/or
|
•
|
problems with the assimilation of new operations, sites or personnel, which could divert resources from regular banking operations.
|
•
|
the price of our common stock may decline to the extent that its current market prices reflect a market assumption that the Transactions will be completed;
|
•
|
having to pay significant costs relating to the Transactions without receiving any benefits arising from the Transactions;
|
•
|
negative reactions from customers, shareholders and market analysts; and
|
•
|
the diversion of the focus of our management to the Transactions instead of on pursuing other opportunities that could have been beneficial to our business.
|
Period
|
Total Number of Shares Purchased (1)
|
Average Price Paid Per Share
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2)
|
Maximum Number (or Approximate Dollar Value) of Shares That May Yet Be Purchased Under the Plans or Programs (2)
|
July 1, 2019 to July 31, 2019
|
3,601
|
$24.15
|
—
|
$3,709
|
August 1, 2019 to August 31, 2019
|
—
|
$—
|
—
|
$3,709
|
September 1, 2019 to September 30, 2019
|
—
|
$—
|
—
|
$3,709
|
Total
|
3,601
|
$24.15
|
—
|
$3,709
|
(1)
|
During the quarter ended September 30, 2019, 21,450 shares of restricted stock previously awarded to certain of the participants in our stock plans vested. We withheld 3,601 shares to satisfy tax withholding requirements associated with the vesting of these restricted shares.
|
(2)
|
On December 4, 2018, Reliant Bancorp announced a stock repurchase plan pursuant to which we may purchase, in the aggregate, up to $12 million of our common stock. This stock repurchase plan will remain in effect through December 31, 2019, unless the entire authorized amount of shares is sooner repurchased. The stock repurchase plan does not obligate Reliant Bancorp to repurchase any dollar amount or number of shares, and the plan may be extended, modified, amended, suspended, or discontinued at any time.
|
Exhibit
No.
|
Description
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.INS*
|
XBRL Instance Document.
|
|
|
101.SCH*
|
XBRL Schema Documents.
|
|
|
101.CAL*
|
XBRL Calculation Linkbase Document.
|
|
|
101.LAB*
|
XBRL Label Linkbase Document.
|
|
|
101.PRE*
|
XBRL Presentation Linkbase Document.
|
|
|
101.DEF*
|
XBRL Definition Linkbase Document.
|
|
|
|
RELIANT BANCORP, INC.
|
|
|
|
|
|
|
November 5, 2019
|
|
|
|
/s/ DeVan D. Ard, Jr.
|
|
|
|
|
DeVan D. Ard, Jr.
|
|
|
|
|
President and Chief Executive Officer
|
|
|
|
|
(Principal Executive Officer)
|
|
|
|
|
|
|
|
|
|
|
November 5, 2019
|
|
|
|
/s/ J. Daniel Dellinger
|
|
|
|
|
J. Daniel Dellinger
|
|
|
|
|
Chief Financial Officer
|
|
|
|
|
(Principal Financial Officer)
|
By:
|
|
|
|
|
|
[•]
|
|
[•]
|
|
1.
|
I have reviewed this Form 10-Q of Reliant Bancorp, Inc.;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements and other financial information included in this report fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
November 5, 2019
|
/s/ DeVan D. Ard, Jr.
|
|
DeVan D. Ard, Jr.
|
|
Chief Executive Officer
|
|
(Principal Executive Officer)
|
1.
|
I have reviewed this Form 10-Q of Reliant Bancorp, Inc.;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements and other financial information included in this report fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
November 5, 2019
|
/s/ J. Daniel Dellinger
|
|
J. Daniel Dellinger
|
|
Chief Financial Officer
|
|
(Principal Financial Officer)
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.
|
November 5, 2019
|
/s/ DeVan D. Ard, Jr.
|
|
DeVan D. Ard, Jr.
|
|
Chief Executive Officer
|
|
(Principal Executive Officer)
|
|
|
|
|
|
/s/ J. Daniel Dellinger
|
|
J. Daniel Dellinger
|
|
Chief Financial Officer
|
|
(Principal Financial Officer)
|