|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the quarterly period ended
|
|
Or
|
|
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the transition period from _____________ to _____________
|
|
|
(State or other jurisdiction of incorporation or organization)
|
(IRS Employer Identification No.)
|
|
|
(Address of principal executive offices)
|
(Zip code)
|
|
|
(Trading symbol)
|
(Name of exchange on which registered)
|
|
No
|
|
No
|
Large Accelerated Filer ☐
|
|
Non-accelerated Filer ☐
|
Smaller Reporting Company
|
Emerging Growth Company
|
Yes
|
No ☑
|
(dollars in thousands)
|
(unaudited)
March 31
2022
|
December 31
2021
|
||||||
Assets:
|
||||||||
Cash and due from banks
|
$
|
|
$
|
|
||||
Interest bearing deposits
|
|
|
||||||
Cash and cash equivalents
|
|
|
||||||
Certificates of deposit in other banks
|
|
|
||||||
Debt securities available-for-sale at fair value (amortized cost of $
|
|
|
||||||
Equity securities at fair value
|
|
|
||||||
Loans held for sale
|
|
|
||||||
Loans
|
|
|
||||||
Allowance for credit losses
|
(
|
)
|
(
|
)
|
||||
Net loans
|
|
|
||||||
Premises and equipment, net
|
|
|
||||||
Right-of-use assets
|
|
|
||||||
Federal Home Loan Bank stock
|
|
|
||||||
Federal Reserve Bank stock
|
|
|
||||||
Goodwill
|
|
|
||||||
Bank owned life insurance
|
|
|
||||||
Mortgage servicing rights
|
|
|
||||||
Other real estate owned
|
|
|
||||||
Deferred tax asset |
||||||||
Accrued interest receivable
|
|
|
||||||
Other assets
|
|
|
||||||
Total assets
|
$
|
|
$
|
|
||||
Liabilities and shareholders’ equity:
|
||||||||
Deposits:
|
||||||||
Noninterest bearing
|
$
|
|
$
|
|
||||
Interest bearing
|
|
|
||||||
Total deposits
|
|
|
||||||
Repurchase agreements
|
|
|
||||||
Federal funds purchased
|
|
|
||||||
Advances from Federal Home Loan Bank
|
|
|
||||||
Long-term debt
|
|
|
||||||
Deferred tax liability
|
|
|
||||||
Operating lease liability
|
|
|
||||||
Finance lease liability
|
|
|
||||||
Accrued interest payable
|
|
|
||||||
Other liabilities
|
|
|
||||||
Total liabilities
|
|
|
||||||
Shareholders’ equity:
|
||||||||
Preferred stock,
|
|
|
||||||
Common stock, $
|
|
|
||||||
Capital surplus
|
|
|
||||||
Retained earnings
|
|
|
||||||
Accumulated other comprehensive loss, net of tax
|
(
|
)
|
(
|
)
|
||||
Total shareholders’ equity
|
|
|
||||||
Total liabilities and shareholders’ equity
|
$
|
|
$
|
|
Three Months Ended
|
||||||||
March 31
|
||||||||
(in thousands except per share data)
|
2022
|
2021
|
||||||
Interest income:
|
||||||||
Interest and fees on loans, including loans held for sale
|
$
|
|
$
|
|
||||
Interest and dividends on securities
|
||||||||
Taxable
|
|
|
||||||
Tax exempt
|
|
|
||||||
Interest and dividends on Federal Reserve Bank and Federal Home Loan Bank stock
|
|
|
||||||
Interest on Federal Reserve Bank deposits
|
|
|
||||||
Other, including interest on federal funds sold
|
|
|
||||||
Total interest income
|
|
|
||||||
Interest expense:
|
||||||||
Interest on deposits
|
|
|
||||||
Interest on repurchase agreements and federal funds purchased
|
|
|
||||||
Interest on long-term debt
|
|
|
||||||
Total interest expense
|
|
|
||||||
Net interest income
|
|
|
||||||
Provision for credit losses (recovery)
|
|
(
|
)
|
|||||
Net interest income after provision for credit losses (recovery)
|
|
|
||||||
Noninterest income:
|
||||||||
Deposit related fees
|
|
|||||||
Gains on sales of loans, net
|
|
|
||||||
Trust and wealth management income
|
|
|
||||||
Loan related fees
|
|
|
||||||
Bank owned life insurance
|
|
|
||||||
Brokerage revenue
|
|
|
||||||
Securities gains (losses)
|
|
(
|
)
|
|||||
Other noninterest income
|
|
|
||||||
Total noninterest income
|
|
|
||||||
Noninterest expense:
|
||||||||
Officer salaries and employee benefits
|
|
|
||||||
Other salaries and employee benefits
|
|
|
||||||
Occupancy, net
|
|
|
||||||
Equipment
|
|
|
||||||
Data processing
|
|
|
||||||
Bank franchise tax
|
|
|
||||||
Legal fees
|
|
|
||||||
Professional fees
|
|
|
||||||
Advertising and marketing
|
|
|
||||||
FDIC insurance
|
|
|
||||||
Other real estate owned provision and expense
|
|
|
||||||
Repossession expense
|
|
|
||||||
Amortization of limited partnership investments
|
|
|
||||||
Other noninterest expense
|
|
|
||||||
Total noninterest expense
|
|
|
||||||
Income before income taxes
|
|
|
||||||
Income taxes
|
|
|
||||||
Net income
|
|
|
||||||
Other comprehensive income (loss):
|
||||||||
Unrealized holding losses on debt securities available-for-sale:
|
||||||||
Unrealized holding losses arising during the period
|
(
|
)
|
(
|
)
|
||||
Less: Reclassification adjustments for realized gains included in net income
|
|
|
||||||
Tax benefit
|
(
|
)
|
(
|
)
|
||||
Other comprehensive loss, net of tax
|
(
|
)
|
(
|
)
|
||||
Comprehensive income (loss)
|
$
|
(
|
)
|
$
|
|
|||
Basic earnings per share
|
$
|
|
$
|
|
||||
Diluted earnings per share
|
$
|
|
$
|
|
||||
Weighted average shares outstanding-basic
|
|
|
||||||
Weighted average shares outstanding-diluted
|
|
|
(in thousands except per share and share amounts)
|
Common
Shares
|
Common
Stock
|
Capital
Surplus
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income (Loss),
Net of Tax
|
Total
|
||||||||||||||||||
Balance, January 1, 2022
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||||
Net income
|
|
|
||||||||||||||||||||||
Other comprehensive loss
|
(
|
)
|
(
|
)
|
||||||||||||||||||||
Cash dividends declared ($
|
(
|
)
|
(
|
)
|
||||||||||||||||||||
Issuance of common stock
|
|
|
|
|
||||||||||||||||||||
Issuance of restricted stock
|
|
|
(
|
)
|
|
|||||||||||||||||||
Vesting of restricted stock
|
(
|
)
|
(
|
)
|
|
|
||||||||||||||||||
Stock-based compensation
|
|
|
||||||||||||||||||||||
Balance, March 31, 2022
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
(in thousands except per share and share amounts)
|
Common
Shares
|
Common
Stock
|
Capital
Surplus
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income (Loss),
Net of Tax
|
Total
|
||||||||||||||||||
Balance, January 1, 2021
|
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||
Net income
|
|
|
||||||||||||||||||||||
Other comprehensive loss
|
(
|
)
|
(
|
)
|
||||||||||||||||||||
Cash dividends declared ($
|
(
|
)
|
(
|
)
|
||||||||||||||||||||
Issuance of common stock
|
|
|
|
|
||||||||||||||||||||
Issuance of restricted stock
|
|
|
(
|
)
|
|
|||||||||||||||||||
Vesting of restricted stock
|
(
|
)
|
(
|
)
|
|
|
||||||||||||||||||
Stock-based compensation
|
|
|
||||||||||||||||||||||
Balance, March 31, 2021
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Three Months Ended
March 31
|
||||||||
(in thousands)
|
2022
|
2021
|
||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
|
$
|
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
|
|
||||||
Deferred taxes
|
|
(
|
)
|
|||||
Stock-based compensation
|
|
|
||||||
Provision for credit losses (recovery)
|
|
(
|
)
|
|||||
Write-downs of other real estate owned and other repossessed assets
|
|
|
||||||
Gains on sale of mortgage loans held for sale
|
(
|
)
|
(
|
)
|
||||
Securities gains
|
|
(
|
)
|
|||||
Fair value adjustment in equity securities
|
(
|
)
|
|
|||||
Gains on sale of assets, net
|
(
|
)
|
(
|
)
|
||||
Proceeds from sale of mortgage loans held for sale
|
|
|
||||||
Funding of mortgage loans held for sale
|
(
|
)
|
(
|
)
|
||||
Amortization of securities premiums and discounts, net
|
|
|
||||||
Change in cash surrender value of bank owned life insurance
|
(
|
)
|
(
|
)
|
||||
Payment of operating lease liabilities
|
(
|
)
|
(
|
)
|
||||
Mortgage servicing rights:
|
||||||||
Fair value adjustments
|
(
|
)
|
(
|
)
|
||||
New servicing assets created
|
(
|
)
|
(
|
)
|
||||
Changes in:
|
||||||||
Accrued interest receivable
|
|
|
||||||
Other assets
|
|
|
||||||
Accrued interest payable
|
|
|
||||||
Other liabilities
|
|
|
||||||
Net cash provided by operating activities
|
|
|
||||||
Cash flows from investing activities:
|
||||||||
Securities available-for-sale (AFS):
|
||||||||
Purchase of AFS securities
|
(
|
)
|
(
|
)
|
||||
Proceeds from sales of AFS securities
|
|
|
||||||
Proceeds from prepayments, calls, and maturities of AFS securities
|
|
|
||||||
Change in loans, net
|
(
|
)
|
|
|||||
Purchase of premises and equipment
|
(
|
)
|
(
|
)
|
||||
Proceeds from sale and retirement of premises and equipment
|
|
|
||||||
Proceeds from sale of stock by Federal Home Loan Bank
|
|
|
||||||
Proceeds from sale of other real estate owned and repossessed assets
|
|
|
||||||
Proceeds from settlement of bank owned life insurance
|
||||||||
Net cash used in investing activities
|
(
|
)
|
(
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Change in deposits, net
|
|
|
||||||
Change in repurchase agreements and federal funds purchased, net
|
(
|
)
|
(
|
)
|
||||
Payments on advances from Federal Home Loan Bank
|
(
|
)
|
(
|
)
|
||||
Payment of finance lease liabilities
|
(
|
)
|
(
|
)
|
||||
Issuance of common stock
|
|
|
||||||
Dividends paid
|
(
|
)
|
(
|
)
|
||||
Net cash provided by financing activities
|
|
|
||||||
Net increase (decrease) in cash and cash equivalents
|
(
|
)
|
|
|||||
Cash and cash equivalents at beginning of period
|
|
|
||||||
Cash and cash equivalents at end of period
|
$
|
|
$
|
|
||||
Supplemental disclosures:
|
||||||||
Income
taxes paid
|
$
|
|
$
|
|
||||
Interest paid
|
|
|
||||||
Non-cash activities:
|
||||||||
Loans to facilitate the sale of other real estate owned and repossessed assets
|
|
|
||||||
Common stock dividends accrued, paid in subsequent quarter
|
|
|
||||||
Real estate acquired in settlement of loans
|
|
(
|
)
|