|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Kentucky
|
61-1206757
|
|
(State or other jurisdiction of incorporation organization)
|
(I.R.S. Employer Identification No.)
|
|
2883 Fifth Avenue
Huntington, West Virginia
|
25702
|
|
(Address of principal executive offices)
|
(Zip Code)
|
|
Registrant’s telephone number (304) 525-1600
|
Title of each class
|
Name of exchange on which registered
|
|
Common Stock without par value
|
NASDAQ:GMS
|
Large accelerated filer
|
Accelerated filer
|
|
Non-accelerated filer
|
Smaller reporting company
|
Emerging growth company
|
Title of each class
|
Outstanding at March 5, 2019
|
|
Common Stock without par value
|
14,628,902
|
Document
|
Parts Into Which Incorporated
|
|
Proxy Statement for the Annual Meeting of Shareholders to be held on June 19, 2019.
|
Part III
|
PART I
|
||||
4
|
||||
19
|
||||
29
|
||||
30
|
||||
31
|
||||
31
|
||||
PART II
|
||||
32
|
||||
35
|
||||
36
|
||||
73
|
||||
96
|
||||
97
|
||||
100
|
||||
102
|
||||
103
|
||||
104
|
||||
105
|
||||
106
|
||||
108
|
||||
169
|
||||
169
|
||||
169
|
||||
PART III
|
||||
170
|
||||
170
|
||||
170
|
||||
170
|
||||
170
|
||||
PART IV
|
||||
171
|
||||
176
|
|
created a new agency to centralize responsibility for consumer financial protection, the Consumer Financial Protection Bureau, which will be responsible for implementing,
examining and enforcing compliance with federal consumer financial laws;
|
|
apply the same leverage and risk-based capital requirements that apply to insured depository institutions to most bank holding companies;
|
|
require bank holding companies and banks to be both well capitalized and well managed in order to acquire banks located outside their home state;
|
|
change the assessment base for federal deposit insurance from the amount of insured deposits to consolidated assets less tangible capital, eliminate the ceiling on the size of
the Deposit Insurance Fund and increase the floor of the size for the Deposit Insurance Fund;
|
|
impose comprehensive regulation of the over-the-counter derivatives market, which would include certain provisions that would effectively prohibit insured depository
institutions from conducting certain derivatives businesses within the institution itself;
|
|
require large, publicly-traded bank holding companies to create a risk committee responsible for the oversight of enterprise risk management;
|
|
implemented corporate governance revisions, including with regard to executive compensation and proxy access by shareholders, that apply to all public companies, not just
financial institutions;
|
|
made permanent the $250,000 limit for federal deposit insurance, increased the cash limit of Securities Investor Protection Corporation protection from $100,000 to $250,000 and
provided unlimited federal deposit insurance for non-interest-bearing demand transaction accounts at all insured depository institutions until December 31, 2012;
|
|
repealed the federal prohibitions on the payment of interest on demand deposits, thereby permitting depository institutions to pay interest on business transaction and other
accounts;
|
|
amended the Electronic Fund Transfer Act (“EFTA”) to, among other things, give the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”) the authority
to establish rules regarding interchange fees charged for electronic debit transactions by payment card issuers having assets over $10 billion and to enforce a new statutory requirement that such fees be reasonable and proportional to the
actual cost of a transaction to the issuer; and
|
|
increased the authority of the Federal Reserve Board to examine financial holding companies and their non-bank subsidiaries.
|
•
|
timely and successfully integrate the operations of Premier and each of the acquisitions;
|
•
|
maintain the existing relationships with the depositors of each acquisition to minimize the withdrawal of deposits subsequent to the merger(s);
|
•
|
maintain and enhance the existing relationships with the borrowers of each acquisition to limit potential losses from loans made by the them prior to
the acquisition;
|
•
|
control the incremental non-interest expense of the integrated operations to maintain overall operating efficiencies;
|
•
|
retain and attract qualified personnel at each acquisition; and
|
•
|
compete effectively in the communities served by each acquisition and in nearby communities.
|
Branch
|
Address
|
Location and Zip Code
|
Leased/
Owned
|
Charleston
|
201 Pennsylvania Avenue
|
Charleston, WV 25302
|
Owned
|
Madison
|
300 State Street
|
Madison, WV 25130
|
Owned
|
Van
|
18854 Pond Fork Road
|
Van, WV 25206
|
Owned
|
West Hamlin
|
40 Lincoln Plaza
|
Branchland, WV 25506
|
Leased
|
Logan
|
307 Hudgins Street
|
Logan, WV 25601
|
Owned
|
Buckhannon
|
14 North Locust Street
|
Buckhannon, WV 26201
|
Owned
|
Bridgeport
|
25 Oakmont Lane
|
Bridgeport, WV 26330
|
Owned
|
Philippi
|
5 South Main Street
|
Philippi, WV 26416
|
Owned
|
Gassaway
|
700 Elk Street
|
Gassaway, WV 26624
|
Owned
|
Flatwoods
|
3802 Sutton Lane
|
Sutton, WV 26601
|
Owned
|
Sutton
|
373 West Main Street
|
Sutton, WV 26601
|
Owned
|
Clay
|
2043 Main Street
|
Clay, WV 25043
|
Owned
|
Rock Cave
|
State Routes 4 & 20
|
Rock Cave, WV 26234
|
Leased
|
Burnsville
|
316 Walbash Avenue
|
Burnsville, WV 26335
|
Leased
|
Ravenswood
|
601 Washington Street
|
Ravenswood, WV 26164
|
Owned
|
Ripley South
|
606 South Church Street
|
Ripley, WV 25271
|
Owned
|
Ripley East
|
103 Miller Drive
|
Ripley, WV 25271
|
Owned
|
Spencer Main
|
303 Main Street
|
Spencer, WV 25276
|
Owned
|
Spencer Drive Thru
|
406 Main Street
|
Spencer, WV 25276
|
Owned
|
Mineral Wells
|
1397 Elizabeth Pike
|
Mineral Wells, WV 26150
|
Owned
|
Connecticut Avenue
|
1130 Connecticut Avenue
|
Washington, DC 20036
|
Leased
|
DuPont Circle
|
1604 17th Street, N.W.
|
Washington, DC 20009
|
Leased
|
K Street
|
1501 K Street, N.W.
|
Washington, DC 20006
|
Leased
|
NoMa
|
1160 First Street, NE
|
Washington, DC 20002
|
Leased
|
Chevy Chase
|
5530 Wisconsin Avenue
|
Chevy Chase, MD 20815
|
Leased
|
Richmond
|
320 North First Street
|
Richmond, VA 23219
|
Owned
|
Hampton
|
101 N. Armistead Avenue
|
Hampton, VA 23669
|
Owned
|
Ronceverte
|
124 Cedar Street
|
Ronceverte, WV 24970
|
Owned
|
Lewisburg
|
3371 North Jefferson Street
|
Lewisburg, WV 24901
|
Owned
|
Downtown Lewisburg
|
1085 East Washington St.
|
Lewisburg, WV 24901
|
Owned
|
White Sulphur Springs
|
42736 Midland Trail East
|
White Sulphur Springs, WV
|
Owned
|
Covington
|
151 North Court Avenue
|
Covington, VA 24426
|
Owned
|
Loan Production Office
|
Address
|
Location and Zip Code
|
Leased/
Owned
|
Beckley
|
300 North Kanawha St, Suite 207
|
Beckley, WV 25801
|
Leased
|
Fairmont
|
412 Fairmont Avenue
|
Fairmont, WV 26554
|
Leased
|
Branch
|
Address
|
Location and Zip Code
|
Leased/
Owned
|
AA Branch
|
67 Commercial Drive, Suite 3
|
Vanceburg, KY 41179
|
Leased
|
Brooksville
|
111 Powell Street
|
Brooksville, KY 41004
|
Owned
|
Cold Spring
|
136 Plaza Drive
|
Cold Spring, KY 41076
|
Owned
|
Eminence
|
5230 South Main Street
|
Eminence, KY 40019
|
Owned
|
Florence
|
8542 US 42 Highway
|
Florence KY 41042
|
Owned
|
Ft.Wright
|
3425 Valley Plaza Pkway
|
Ft. Wright, KY 41017
|
Owned
|
Garrison
|
9234 East KY 8
|
Garrison, KY 41141
|
Owned
|
Maysville
|
1201 US 68
|
Maysville, KY 41056
|
Owned
|
Mt. Olivet
|
17 West Walnut Street
|
Mt. Olivet, KY 41064
|
Owned
|
Tollesboro
|
2954 West KY 10
|
Tollesboro, KY 41189
|
Owned
|
Huntington
|
2600 5th Avenue
|
Huntington, WV 25701
|
Owned
|
Ironton
|
221 Railroad Street
|
Ironton, OH 45638
|
Owned
|
Proctorville
|
7604 County Road 107 Unit A
|
Proctorville, OH 45669
|
Leased
|
Ripley
|
104 Main Street
|
Ripley, OH 45167
|
Owned
|
Cash
|
Sales Price
|
|||||||||||
Dividends Paid
|
High
|
Low
|
||||||||||
2017
|
||||||||||||
First Quarter
|
0.120
|
$
|
17.35
|
$
|
14.25
|
|||||||
Second Quarter
|
0.120
|
17.76
|
15.26
|
|||||||||
Third Quarter
|
0.120
|
18.34
|
13.80
|
|||||||||
Fourth Quarter
|
0.120
|
17.60
|
14.54
|
|||||||||
0.480
|
||||||||||||
2018
|
||||||||||||
First Quarter
|
0.120
|
$
|
16.80
|
$
|
13.43
|
|||||||
Second Quarter
|
0.150
|
21.40
|
14.82
|
|||||||||
Third Quarter
|
0.150
|
20.91
|
18.01
|
|||||||||
Fourth Quarter
|
0.150
|
19.10
|
14.42
|
|||||||||
0.570
|
||||||||||||
2019
|
||||||||||||
First Quarter (through March 5, 2019)
|
$
|
0.000
|
$
|
16.99
|
$
|
14.07
|
||||||
* For comparative purposes, historical per share amounts prior to June 8, 2018 have been adjusted to reflect a 5 for 4 stock split declared on May 16, 2018,
distributed on June 8, 2018 to shareholders of record on June 4, 2018
|
Period Ending
|
||||||
Index
|
12/31/13
|
12/31/14
|
12/31/15
|
12/31/16
|
12/31/17
|
12/31/18
|
Premier Financial Bancorp, Inc.
|
100.00
|
114.61
|
125.52
|
174.82
|
180.00
|
172.69
|
Russell 2000 Index
|
100.00
|
104.89
|
100.26
|
121.63
|
139.44
|
124.09
|
SNL Banks $1B-$5B Index
|
100.00
|
104.56
|
117.04
|
168.38
|
179.51
|
157.27
|
Plan Category
|
Number of securities to be issued upon exercise of outstanding options, warrants and rights
(a)
|
Weighted-average exercise price of outstanding options, warrants and rights
(b)
|
Number of securities remaining available for future issuance under equity compensation plans (Excluding securities reflected in column (a))
(c)
|
|||||||||
Equity compensation plans approved by shareholders
|
||||||||||||
2002 Stock Option Plan
|
43,331
|
$
|
5.48
|
0
|
||||||||
2012 Long-term Incentive Plan
|
255,052
|
12.70
|
304,159
|
|||||||||
Equity compensation plans not approved by
shareholders
|
||||||||||||
None
|
||||||||||||
Total
|
298,383
|
$
|
11.66
|
304,159
|
(Dollars in thousands, except per share amounts)
|
At or for the Year Ended December 31
|
|||||||||||||||||||
2018
|
2017
|
2016
|
2015
|
2014
|
||||||||||||||||
Earnings
|
||||||||||||||||||||
Net interest income
|
$
|
59,754
|
$
|
57,488
|
$
|
53,698
|
$
|
48,380
|
$
|
48,414
|
||||||||||
Provision for loan losses
|
2,315
|
2,499
|
1,748
|
326
|
534
|
|||||||||||||||
Non-interest income
|
9,098
|
8,655
|
8,187
|
7,099
|
6,930
|
|||||||||||||||
Non-interest expense
|
40,471
|
40,218
|
41,193
|
35,804
|
34,490
|
|||||||||||||||
Income taxes
|
5,898
|
8,607
|
6,770
|
6,903
|
7,170
|
|||||||||||||||
Net income
|
20,168
|
14,819
|
12,174
|
12,446
|
13,150
|
|||||||||||||||
Preferred stock dividends, net of redemption discount
|
-
|
-
|
-
|
-
|
598
|
|||||||||||||||
Net income available to common shareholders
|
$
|
20,168
|
$
|
14,819
|
$
|
12,174
|
$
|
12,446
|
$
|
12,552
|
||||||||||
Financial Position
|
||||||||||||||||||||
Total assets
|
$
|
1,690,115
|
$
|
1,493,424
|
$
|
1,496,193
|
$
|
1,244,693
|
$
|
1,252,824
|
||||||||||
Loans
|
1,149,301
|
1,049,052
|
1,024,823
|
849,746
|
879,711
|
|||||||||||||||
Allowance for loan losses
|
13,738
|
12,104
|
10,836
|
9,647
|
10,347
|
|||||||||||||||
Goodwill and other intangibles
|
52,908
|
38,746
|
39,720
|
35,976
|
36,829
|
|||||||||||||||
Securities
|
365,731
|
278,466
|
288,607
|
255,466
|
229,750
|
|||||||||||||||
Deposits
|
1,430,127
|
1,272,675
|
1,279,386
|
1,060,196
|
1,075,243
|
|||||||||||||||
Other borrowings
|
33,381
|
28,310
|
32,679
|
32,986
|
27,302
|
|||||||||||||||
Subordinated debt
|
5,406
|
5,376
|
5,343
|
-
|
-
|
|||||||||||||||
Common equity
|
216,729
|
183,355
|
174,184
|
147,232
|
145,782
|
|||||||||||||||
Per Common Share Data
|
||||||||||||||||||||
Net income – basic
|
1.48
|
1.11
|
0.92
|
1.11
|
1.13
|
|||||||||||||||
Net income - diluted
|
1.47
|
1.10
|
0.92
|
1.08
|
1.06
|
|||||||||||||||
Book value
|
14.82
|
13.74
|
13.10
|
13.09
|
13.02
|
|||||||||||||||
Tangible book value
|
11.20
|
10.84
|
10.11
|
9.89
|
9.73
|
|||||||||||||||
Cash dividends
|
0.57
|
0.48
|
0.45
|
0.41
|
0.44
|
|||||||||||||||
Financial Ratios
|
||||||||||||||||||||
Return on average assets
|
1.30
|
%
|
0.99
|
%
|
0.82
|
%
|
0.98
|
%
|
1.01
|
%
|
||||||||||
Return on average common equity
|
10.46
|
%
|
8.13
|
%
|
6.94
|
%
|
8.41
|
%
|
8.80
|
%
|
||||||||||
Dividend payout
|
38.51
|
%
|
43.24
|
%
|
48.62
|
%
|
36.69
|
%
|
38.62
|
%
|
||||||||||
Stockholders’ equity to total assets at period-end
|
12.82
|
%
|
12.28
|
%
|
11.64
|
%
|
11.83
|
%
|
11.64
|
%
|
||||||||||
Average stockholders’ equity to average total assets
|
12.39
|
%
|
12.18
|
%
|
11.78
|
%
|
11.67
|
%
|
12.29
|
%
|
ANALYSIS of RETURN ON ASSETS and EQUITY
|
||||||||||||||||||||
2018
|
2017
|
2016
|
2015
|
2014
|
||||||||||||||||
As a percent of average earning assets
|
||||||||||||||||||||
Fully taxable-equivalent net interest income
|
4.13
|
%
|
4.18
|
%
|
3.93
|
%
|
4.15
|
%
|
4.27
|
%
|
||||||||||
Provision for loan losses
|
(0.16
|
)
|
(0.18
|
)
|
(0.13
|
)
|
(0.03
|
)
|
(0.05
|
)
|
||||||||||
Net credit income
|
3.97
|
4.00
|
3.80
|
4.12
|
4.22
|
|||||||||||||||
Non-interest income
|
0.63
|
0.62
|
0.59
|
0.61
|
0.61
|
|||||||||||||||
Non-interest expense
|
(2.79
|
)
|
(2.90
|
)
|
(2.99
|
)
|
(3.05
|
)
|
(3.03
|
)
|
||||||||||
Tax equivalent adjustment
|
(0.01
|
)
|
(0.03
|
)
|
(0.03
|
)
|
(0.03
|
)
|
(0.02
|
)
|
||||||||||
Applicable income taxes
|
(0.41
|
)
|
(0.62
|
)
|
(0.49
|
)
|
(0.59
|
)
|
(0.63
|
)
|
||||||||||
Preferred stock dividends
|
0.00
|
0.00
|
0.00
|
0.00
|
(0.05
|
)
|
||||||||||||||
Return on average earning assets
|
1.39
|
%
|
1.07
|
%
|
0.88
|
%
|
1.06
|
%
|
1.10
|
%
|
||||||||||
Multiplied by average earning assets to
average total assets
|
93.39
|
92.62
|
92.56
|
92.45
|
92.02
|
|||||||||||||||
Return on average assets
|
1.30
|
%
|
0.99
|
%
|
0.82
|
%
|
0.98
|
%
|
1.01
|
%
|
||||||||||
Multiplied by average assets to
average common stockholders’ equity
|
8.07
|
X
|
8.21
|
X
|
8.49
|
X
|
8.57
|
X
|
8.67
|
X
|
||||||||||
Return on average common equity
|
10.50
|
%
|
8.14
|
%
|
6.94
|
%
|
8.41
|
%
|
8.80
|
%
|
QUARTERLY FINANCIAL INFORMATION
|
||||||||||||||||||||
(Dollars in thousands, except per share amounts)
|
||||||||||||||||||||
First
|
Second
|
Third
|
Fourth
|
Full Year
|
||||||||||||||||
2018
|
||||||||||||||||||||
Interest income
|
$
|
15,799
|
$
|
15,753
|
$
|
16,001
|
$
|
18,268
|
$
|
65,821
|
||||||||||
Interest expense
|
1,164
|
1,334
|
1,492
|
2,077
|
6,067
|
|||||||||||||||
Net interest income
|
14,635
|
14,419
|
14,509
|
16,191
|
59,754
|
|||||||||||||||
Provision for loan losses
|
1,115
|
500
|
275
|
425
|
2,315
|
|||||||||||||||
Net overhead
|
6,923
|
8,227
|
7,730
|
8,493
|
31,373
|
|||||||||||||||
Income before income taxes
|
6,597
|
5,692
|
6,504
|
7,273
|
26,066
|
|||||||||||||||
Net income
|
5,133
|
4,375
|
5,021
|
5,639
|
20,168
|
|||||||||||||||
Basic net income per share
|
0.38
|
0.33
|
0.38
|
0.39
|
1.48
|
|||||||||||||||
Diluted net income per share
|
0.38
|
0.32
|
0.37
|
0.39
|
1.47
|
|||||||||||||||
Dividends paid per share
|
0.120
|
0.150
|
0.150
|
0.150
|
0.570
|
|||||||||||||||
2017
|
||||||||||||||||||||
Interest income
|
$
|
15,109
|
$
|
16,373
|
$
|
15,134
|
$
|
15,374
|
$
|
61,990
|
||||||||||
Interest expense
|
1,113
|
1,111
|
1,103
|
1,175
|
4,502
|
|||||||||||||||
Net interest income
|
13,996
|
15,262
|
14,031
|
14,199
|
57,488
|
|||||||||||||||
Provision for loan losses
|
366
|
776
|
891
|
466
|
2,499
|
|||||||||||||||
Net overhead
|
7,981
|
8,270
|
7,748
|
7,564
|
31,563
|
|||||||||||||||
Income before income taxes
|
5,649
|
6,216
|
5,392
|
6,169
|
23,426
|
|||||||||||||||
Net income
|
3,644
|
3,919
|
3,467
|
3,769
|
14,819
|
|||||||||||||||
Basic net income per share
|
0.28
|
0.29
|
0.26
|
0.28
|
1.11
|
|||||||||||||||
Diluted net income per share
|
0.27
|
0.29
|
0.26
|
0.28
|
1.10
|
|||||||||||||||
Dividends paid per share
|
0.120
|
0.120
|
0.120
|
0.120
|
0.480
|
AVERAGE CONSOLIDATED BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS
|
||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||
2018
|
2017
|
2016
|
||||||||||||||||||||||||||||||||||
Average
Balance
|
Interest
|
Yield/
Rate (2)
|
Average
Balance
|
Interest
|
Yield/
Rate (2)
|
Average
Balance
|
Interest
|
Yield/
Rate (2)
|
||||||||||||||||||||||||||||
Assets:
|
||||||||||||||||||||||||||||||||||||
Interest earning assets
|
||||||||||||||||||||||||||||||||||||
U.S. Treasury and federal agency securities
|
$
|
17,894
|
$
|
309
|
1.73
|
%
|
$
|
21,683
|
$
|
308
|
1.42
|
%
|
$
|
28,441
|
$
|
395
|
1.39
|
%
|
||||||||||||||||||
States and municipal obligations (1)
|
10,291
|
322
|
3.13
|
12,132
|
402
|
3.31
|
19,832
|
612
|
3.09
|
|||||||||||||||||||||||||||
Mortgage backed securities
|
276,051
|
6,491
|
2.35
|
256,293
|
5,130
|
2.00
|
257,741
|
4,765
|
1.85
|
|||||||||||||||||||||||||||
Other securities
|
4,809
|
222
|
4.62
|
5,595
|
190
|
3.40
|
3,430
|
124
|
3.62
|
|||||||||||||||||||||||||||
Total investment securities
|
309,045
|
7,344
|
2.38
|
295,703
|
6,030
|
2.04
|
309,444
|
5,896
|
1.91
|
|||||||||||||||||||||||||||
Federal funds sold
|
11,848
|
248
|
2.09
|
7,051
|
73
|
1.04
|
5,474
|
24
|
0.44
|
|||||||||||||||||||||||||||
Interest-bearing deposits with banks
|
72,307
|
1,441
|
1.99
|
36,405
|
603
|
1.66
|
58,742
|
407
|
0.69
|
|||||||||||||||||||||||||||
Loans, net of unearned income (3)(4)
|
||||||||||||||||||||||||||||||||||||
Commercial
|
733,983
|
38,971
|
5.31
|
720,679
|
37,948
|
5.27
|
670,356
|
34,250
|
5.11
|
|||||||||||||||||||||||||||
Real estate mortgage
|
294,271
|
15,589
|
5.30
|
292,650
|
15,145
|
5.18
|
297,898
|
15,461
|
5.19
|
|||||||||||||||||||||||||||
Installment
|
31,281
|
2,409
|
7.70
|
32,566
|
2,566
|
7.88
|
35,274
|
2,743
|
7.78
|
|||||||||||||||||||||||||||
Total loans
|
1,059,535
|
56,969
|
5.38
|
1,045,895
|
55,659
|
5.32
|
1,003,528
|
52,454
|
5.23
|
|||||||||||||||||||||||||||
Total interest earning assets
|
1,452,735
|
66,002
|
4.54
|
1,385,054
|
62,365
|
4.50
|
1,377,188
|
58,781
|
4.27
|
|||||||||||||||||||||||||||
Allowance for loan losses
|
(13,058
|
)
|
(11,461
|
)
|
(10,407
|
)
|
||||||||||||||||||||||||||||||
Cash and due from banks
|
25,478
|
40,915
|
39,497
|
|||||||||||||||||||||||||||||||||
Premises and equipment
|
25,784
|
23,775
|
24,284
|
|||||||||||||||||||||||||||||||||
Other assets
|
64,600
|
57,170
|
57,388
|
|||||||||||||||||||||||||||||||||
Total assets
|
$
|
1,555,539
|
$
|
1,495,453
|
$
|
1,487,950
|
||||||||||||||||||||||||||||||
Liabilities and Equity:
|
||||||||||||||||||||||||||||||||||||
Interest bearing liabilities
|
||||||||||||||||||||||||||||||||||||
NOW and money market
|
$
|
378,617
|
958
|
0.25
|
%
|
$
|
368,093
|
619
|
0.17
|
%
|
$
|
361,078
|
600
|
0.17
|
%
|
|||||||||||||||||||||
Savings deposits
|
240,071
|
581
|
0.24
|
238,306
|
478
|
0.20
|
233,021
|
490
|
0.21
|
|||||||||||||||||||||||||||
Certificates of deposit and other time deposits
|
352,511
|
3,905
|
1.11
|
348,124
|
2,758
|
0.79
|
366,918
|
2,794
|
0.76
|
|||||||||||||||||||||||||||
Total interest bearing deposits
|
971,199
|
5,444
|
0.56
|
954,523
|
3,855
|
0.40
|
961,017
|
3,884
|
0.40
|
|||||||||||||||||||||||||||
Short-term borrowings
|
22,410
|
34
|
0.15
|
24,965
|
60
|
0.24
|
26,334
|
44
|
0.17
|
|||||||||||||||||||||||||||
Other borrowings
|
3,809
|
156
|
4.10
|
7,074
|
292
|
4.13
|
10,088
|
416
|
4.12
|
|||||||||||||||||||||||||||
FHLB advances
|
2,958
|
81
|
2.74
|
-
|
-
|
-
|
679
|
43
|
6.33
|
|||||||||||||||||||||||||||
Subordinated debt
|
5,390
|
352
|
6.53
|
5,359
|
295
|
5.50
|
5,178
|
256
|
4.94
|
|||||||||||||||||||||||||||
Total interest-bearing liabilities
|
1,005,766
|
6,067
|
0.60
|
%
|
991,921
|
4,502
|
0.45
|
%
|
1,003,296
|
4,643
|
0.46
|
%
|
||||||||||||||||||||||||
Non-interest bearing deposits
|
352,565
|
316,931
|
305,518
|
|||||||||||||||||||||||||||||||||
Other liabilities
|
4,451
|
4,411
|
3,839
|
|||||||||||||||||||||||||||||||||
Common equity
|
192,757
|
182,190
|
175,297
|
|||||||||||||||||||||||||||||||||
Total liabilities and equity
|
$
|
1,555,539
|
$
|
1,495,453
|
$
|
1,487,950
|
||||||||||||||||||||||||||||||
Net interest earnings (1)
|
$
|
59,935
|
$
|
57,863
|
$
|
54,138
|
||||||||||||||||||||||||||||||
Net interest spread (1)
|
3.94
|
%
|
4.05
|
%
|
3.81
|
%
|
||||||||||||||||||||||||||||||
Net interest margin (1)
|
4.13
|
%
|
4.18
|
%
|
3.93
|
%
|
||||||||||||||||||||||||||||||
(1) Taxable – equivalent yields are calculated assuming a 21% federal income tax rate for 2018 and 35% for 2017 and 2016
(2) Yields are calculated on historical cost except for yields on marketable equity securities that are calculated used fair value
(3) Includes loan fees, immaterial in amount, in both interest income and the calculation of yield on loans
(4) Includes loans on non-accrual status
|
LOAN SUMMARY
|
||||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||
As of December 31
|
||||||||||||||||||||||||||||||
2018
|
%
|
2017
|
%
|
2016
|
%
|
2015
|
%
|
2014
|
%
|
|||||||||||||||||||||
Summary of Loans by Type
|
||||||||||||||||||||||||||||||
Commercial, secured by real estate
|
$
|
493,937
|
43.0
|
%
|
$
|
451,433
|
43.0
|
%
|
$
|
443,832
|
43.3
|
%
|
$
|
374,558
|
44.1
|
%
|
$
|
404,430
|
46.0
|
%
|
||||||||||
Commercial, other
|
103,624
|
9.0
|
78,259
|
7.5
|
76,736
|
7.5
|
68,339
|
8.0
|
85,943
|
9.8
|
||||||||||||||||||||
Real estate construction and land development
|
128,926
|
11.2
|
139,012
|
13.2
|
117,828
|
11.5
|
78,695
|
9.3
|
66,689
|
7.6
|
||||||||||||||||||||
Real estate mortgage
|
381,027
|
33.2
|
338,829
|
32.3
|
342,294
|
33.4
|
285,826
|
33.6
|
278,212
|
31.6
|
||||||||||||||||||||
Agricultural
|
2,233
|
0.2
|
1,631
|
0.2
|
1,383
|
0.1
|
1,728
|
0.2
|
1,987
|
0.2
|
||||||||||||||||||||
Consumer
|
27,688
|
2.4
|
28,293
|
2.7
|
30,916
|
3.0
|
31,445
|
3.7
|
32,745
|
3.7
|
||||||||||||||||||||
Other
|
11,866
|
1.0
|
11,595
|
1.1
|
11,834
|
1.2
|
9,155
|
1.1
|
9,705
|
1.1
|
||||||||||||||||||||
Total loans
|
$
|
1,149,301
|
100.0
|
%
|
$
|
1,049,052
|
100.0
|
%
|
$
|
1,024,823
|
100.0
|
%
|
$
|
849,746
|
100.0
|
%
|
$
|
879,711
|
100.0
|
%
|
||||||||||
Non-performing Assets
|
||||||||||||||||||||||||||||||
Non-accrual loans
|
$
|
17,448
|
$
|
15,246
|
$
|
25,747
|
$
|
7,141
|
$
|
12,712
|
||||||||||||||||||||
Accruing loans which are contractually past due 90 days or more
|
1,086
|
3,391
|
1,999
|
3,032
|
1,266
|
|||||||||||||||||||||||||
Accruing troubled debt restructurings
|
6,283
|
12,584
|
8,268
|
3,996
|
2,489
|
|||||||||||||||||||||||||
Total non-performing and restructured loans
|
24,817
|
31,221
|
36,014
|
14,169
|
16,467
|
|||||||||||||||||||||||||
Other real estate acquired through foreclosures
|
14,024
|
19,966
|
12,665
|
13,040
|
12,208
|
|||||||||||||||||||||||||
Total non-performing and restructured loans and other real estate
|
$
|
38,841
|
$
|
51,187
|
$
|
48,679
|
$
|
27,209
|
$
|
28,675
|
||||||||||||||||||||
Non-performing and restructured loans as a % of total loans
|
2.16
|
%
|
2.98
|
%
|
3.51
|
%
|
1.67
|
%
|
1.87
|
%
|
||||||||||||||||||||
Non-performing and restructured loans and other real estate as a % of total assets
|
2.30
|
%
|
3.43
|
%
|
3.25
|
%
|
2.19
|
%
|
2.29
|
%
|
||||||||||||||||||||
Allocation of Allowance for Loan Losses
|
||||||||||||||||||||||||||||||
Commercial, other
|
$
|
2,151
|
10.2
|
%
|
$
|
1,226
|
8.8
|
%
|
$
|
1,243
|
8.8
|
%
|
$
|
1,166
|
9.3
|
%
|
$
|
1,600
|
11.1
|
%
|
||||||||||
Real estate, construction
|
2,256
|
11.2
|
2,408
|
13.2
|
1,397
|
11.5
|
1,061
|
9.3
|
1,744
|
7.6
|
||||||||||||||||||||
Real estate, other
|
8,980
|
76.2
|
8,142
|
75.3
|
7,849
|
76.7
|
7,113
|
77.7
|
6,760
|
77.6
|
||||||||||||||||||||
Consumer installment
|
351
|
2.4
|
328
|
2.7
|
347
|
3.0
|
307
|
3.7
|
243
|
3.7
|
||||||||||||||||||||
Total
|
$
|
13,738
|
100.0
|
%
|
$
|
12,104
|
100.0
|
%
|
$
|
10,836
|
100.0
|
%
|
$
|
9,647
|
100.0
|
%
|
$
|
10,347
|
100.0
|
%
|
SUMMARY OF LOAN LOSS EXPERIENCE
|
||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
For the Year Ended December 31
|
||||||||||||||||||||
2018
|
2017
|
2016
|
2015
|
2014
|
||||||||||||||||
Allowance for loan losses beginning of period
|
$
|
12,104
|
$
|
10,836
|
$
|
9,647
|
$
|
10,347
|
$
|
11,027
|
||||||||||
Amounts charged off:
|
||||||||||||||||||||
Commercial, financial and agricultural loans
|
794
|
496
|
347
|
611
|
365
|
|||||||||||||||
Real estate construction loans
|
20
|
129
|
-
|
900
|
110
|
|||||||||||||||
Real estate loans – other
|
398
|
1,000
|
323
|
376
|
965
|
|||||||||||||||
Consumer installment loans
|
156
|
278
|
340
|
209
|
161
|
|||||||||||||||
Total charge-offs
|
1,368
|
1,903
|
1,010
|
2,096
|
1,601
|
|||||||||||||||
Recoveries on amounts previously charged-off:
|
||||||||||||||||||||
Commercial, financial and agricultural loans
|
169
|
236
|
172
|
121
|
127
|
|||||||||||||||
Real estate construction loans
|
400
|
10
|
143
|
99
|
136
|
|||||||||||||||
Real estate loans – other
|
60
|
299
|
50
|
753
|
64
|
|||||||||||||||
Consumer installment loans
|
58
|
127
|
86
|
97
|
60
|
|||||||||||||||
Total recoveries
|
687
|
672
|
451
|
1,070
|
387
|
|||||||||||||||
Net charge-offs
|
681
|
1,231
|
559
|
1,026
|
1,214
|
|||||||||||||||
Provision for loan losses
|
2,315
|
2,499
|
1,748
|
326
|
534
|
|||||||||||||||
Allowance for loan losses, end of period
|
$
|
13,738
|
$
|
12,104
|
$
|
10,836
|
$
|
9,647
|
$
|
10,347
|
||||||||||
Average total loans
|
$
|
1,059,535
|
$
|
1,045,894
|
$
|
1,003,528
|
$
|
866,556
|
$
|
821,160
|
||||||||||
Total loans at year-end
|
1,149,301
|
1,049,052
|
1,024,823
|
849,746
|
879,711
|
|||||||||||||||
As a percent of average loans
|
||||||||||||||||||||
Net charge-offs
|
0.06
|
%
|
0.12
|
%
|
0.06
|
%
|
0.12
|
%
|
0.15
|
%
|
||||||||||
Provision for loan losses
|
0.22
|
%
|
0.24
|
%
|
0.17
|
%
|
0.04
|
%
|
0.07
|
%
|
||||||||||
Allowance for loan losses
|
1.30
|
%
|
1.16
|
%
|
1.08
|
%
|
1.11
|
%
|
1.26
|
%
|
||||||||||
As a percent of total loans at year-end
|
||||||||||||||||||||
Allowance for loan losses
|
1.20
|
%
|
1.15
|
%
|
1.06
|
%
|
1.14
|
%
|
1.18
|
%
|
||||||||||
As a multiple of net charge-offs
|
||||||||||||||||||||
Allowance for loan losses
|
20.17
|
X
|
9.83
|
X
|
19.38
|
X
|
9.40
|
X
|
8.52
|
X
|
||||||||||
Income before tax and provision for loan losses
|
41.68
|
X
|
21.06
|
X
|
37.02
|
X
|
19.18
|
X
|
17.18
|
X
|
LOAN MATURITIES and INTEREST SENSITIVITY
|
||||||||||||||||
December 31, 2018
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Projected Maturities*
|
||||||||||||||||
One Year or Less
|
One Through Five Years
|
Over
Five Years
|
Total
|
|||||||||||||
Commercial, secured by real estate
|
$
|
109,639
|
$
|
364,506
|
$
|
19,793
|
$
|
493,938
|
||||||||
Commercial, other
|
46,050
|
47,876
|
9,697
|
103,623
|
||||||||||||
Real estate construction
|
46,529
|
76,710
|
5,686
|
128,925
|
||||||||||||
Agricultural
|
296
|
1,566
|
370
|
2,232
|
||||||||||||
Total
|
$
|
202,514
|
$
|
490,658
|
$
|
35,546
|
$
|
728,718
|
||||||||
Fixed rate loans
|
$
|
45,601
|
$
|
204,440
|
$
|
13,856
|
$
|
263,897
|
||||||||
Floating rate loans
|
156,914
|
286,220
|
21,689
|
464,823
|
||||||||||||
Total
|
$
|
202,515
|
$
|
490,660
|
$
|
35,545
|
$
|
728,720
|
||||||||
Fixed rate loans projected to mature after one year
|
$
|
218,296
|
||||||||||||||
Floating rate loans projected to mature after one year
|
307,909
|
|||||||||||||||
Total
|
$
|
526,205
|
||||||||||||||
(*) Based on scheduled or approximate repayments
|
FAIR VALUE OF SECURITIES AVAILABLE FOR SALE
|
||||||||||||
(Dollars in thousands)
|
||||||||||||
As of December 31
|
||||||||||||
2018
|
2017
|
2016
|
||||||||||
U.S. government sponsored entity securities
|
$
|
24,170
|
$
|
19,134
|
$
|
24,501
|
||||||
States and political subdivisions
|
14,327
|
11,634
|
16,662
|
|||||||||
Mortgage-backed securities issued by government sponsored entities
|
323,785
|
247,698
|
247,444
|
|||||||||
Other securities
|
3,449
|
-
|
-
|
|||||||||
Total securities
|
$
|
365,731
|
$
|
278,466
|
$
|
288,607
|
SECURITIES MATURITY AND YIELD ANALYSIS
|
||||||||||||
December 31, 2018
|
||||||||||||
(Dollars in thousands)
|
||||||||||||
Fair Value
|
Average Maturity (yrs/mos)
|
Taxable Equivalent Yield*
|
||||||||||
U.S. government sponsored entity securities
|
||||||||||||
Within one year
|
$
|
6,073
|
1.58
|
%
|
||||||||
After one but within five years
|
13,737
|
2.49
|
||||||||||
After five but within ten years
|
4,360
|
3.02
|
||||||||||
Total U.S. government sponsored entity securities
|
$
|
24,170
|
3/1
|
2.37
|
||||||||
States and political subdivisions
|
||||||||||||
Within one year
|
250
|
2.82
|
||||||||||
After one but within five years
|
5,771
|
3.20
|
||||||||||
After five but within ten years
|
3,246
|
3.33
|
||||||||||
After ten years
|
5,060
|
2.93
|
||||||||||
Total states and political subdivisions securities
|
$
|
14,327
|
7/0
|
3.48
|
||||||||
Mortgage-backed securities**
|
||||||||||||
Within one year
|
1,489
|
3.58
|
||||||||||
After one but within five years
|
264,209
|
2.63
|
||||||||||
After five but within ten years
|
58,087
|
3.19
|
||||||||||
Total mortgage-backed securities
|
$
|
323,785
|
4/1
|
2.73
|
||||||||
Other securities
|
||||||||||||
Within one year
|
$
|
1,009
|
4.65
|
%
|
||||||||
After one but within five years
|
1,949
|
3.91
|
||||||||||
After five but within ten years
|
491
|
3.67
|
||||||||||
Total other securities
|
$
|
3,449
|
3/4
|
4.09
|
||||||||
Total securities available-for-sale
|
$
|
365,731
|
4/2
|
2.75
|
||||||||
(*) Fully tax-equivalent using the rate of 21%
|
||||||||||||
(**) Maturities for mortgage-backed securities are based on expected average life
|
MATURITY OF TIME DEPOSITS $100,000 OR MORE
|
||||
December 31, 2018
|
||||
(Dollars in thousands)
|
||||
Maturing 3 months or less
|
$
|
29,421
|
||
Maturing over 3 months
|
47,183
|
|||
Maturing over 6 months
|
62,123
|
|||
Maturing over 12 months
|
67,710
|
|||
Total
|
$
|
206,437
|
PAYMENTS DUE ON CONTRACTUAL OBLIGATIONS
|
||||||||||||||||||||
December 31, 2018
|
||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Total
|
Less than
one year
|
1-3
years
|
3-5
years
|
More than
five years
|
||||||||||||||||
Total deposits
|
$
|
1,430,127
|
$
|
1,303,320
|
$
|
104,950
|
$
|
21,732
|
$
|
125
|
||||||||||
Repurchase agreements
|
22,062
|
22,062
|
-
|
-
|
-
|
|||||||||||||||
Federal Home Loan Bank advances*
|
8,900
|
2,500
|
6,400
|
-
|
-
|
|||||||||||||||
Other borrowed funds
|
2,500
|
1,716
|
784
|
-
|
-
|
|||||||||||||||
Subordinated debentures **
|
6,186
|
-
|
-
|
-
|
6,186
|
|||||||||||||||
Operating lease obligations
|
4,717
|
1,017
|
2,069
|
1,530
|
101
|
|||||||||||||||
Data and item processing contracts***
|
12,000
|
3,600
|
7,200
|
1,200
|
-
|
|||||||||||||||
Total
|
$
|
1,486,492
|
$
|
1,334,215
|
$
|
121,403
|
$
|
24,462
|
$
|
6,412
|
||||||||||
* The contractual obligation of the Federal Home Loan Bank advances differ from the carrying value on the balance sheet at Dec.31, 2018 due to the remaining
unamortized fair value adjustment recorded as a result of the acquisition of First Bank on October 12, 2018.
** The contractual obligation of the subordinated debenture differs from the carrying value on the balance sheet at December 31, 2018 due to the remaining
unamortized fair value adjustment recorded as a result of the acquisition of Bankshares on January 15, 2016.
*** Data and item processing contractual obligations are estimated using the average billing for the last three months of 2017.
|
Year-end
2018
|
Year-end
2017
|
ALCO Guidelines
|
||||||||||
Projected 1-year net interest income
|
||||||||||||
-100 bp change vs. base rate
|
-4.2
|
%
|
-2.6
|
%
|
5
|
%
|
||||||
+100 bp change vs. base rate
|
0.4
|
%
|
1.8
|
%
|
5
|
%
|
||||||
Projected 1-year net interest income
|
||||||||||||
-200 bp change vs. base rate
|
-9.1
|
%
|
-5.0
|
%
|
10
|
%
|
||||||
+200 bp change vs. base rate
|
-0.1
|
%
|
2.3
|
%
|
10
|
%
|
SELECTED CAPITAL INFORMATION
|
||||||||||||
(Dollars in thousands)
|
||||||||||||
As of December 31
|
||||||||||||
2018
|
2017
|
Change
|
||||||||||
Stockholders’ Equity
|
$
|
216,729
|
$
|
183,355
|
$
|
33,374
|
||||||
Disallowed amounts of goodwill and other intangibles
|
(49,263
|
)
|
(34,955
|
)
|
(14,308
|
)
|
||||||
Deferred tax assets from NOL and tax credit carryforwards
|
(286
|
)
|
(404
|
)
|
118
|
|||||||
Unrealized (gain) loss on securities available for sale
|
3,852
|
2,073
|
1,779
|
|||||||||
Common Equity Tier 1 capital
|
$
|
171,032
|
$
|
150,069
|
$
|
20,963
|
||||||
Deferred tax assets from NOL and tax credit carryforwards
|
-
|
(101
|
)
|
101
|
||||||||
Qualifying subordinated debt
|
6,000
|
6,000
|
-
|
|||||||||
Tier 1 capital
|
$
|
177,032
|
$
|
155,968
|
$
|
21,064
|
||||||
Tier 2 capital adjustments
|
||||||||||||
Allowable amount of the allowance for loan losses
|
13,738
|
12,104
|
||||||||||
Total capital
|
$
|
190,770
|
$
|
168,072
|
||||||||
Total risk-weighted assets
|
$
|
1,201,379
|
$
|
1,080,008
|
||||||||
Ratios
|
||||||||||||
CET1 capital to risk-weighted assets
|
14.24
|
%
|
13.90
|
%
|
||||||||
Tier 1 capital to risk-weighted assets
|
14.74
|
%
|
14.44
|
%
|
||||||||
Total capital to risk-weighted assets
|
15.88
|
%
|
15.56
|
%
|
||||||||
Leverage
|
10.72
|
%
|
10.67
|
%
|
||||||||
Capital conservation buffer
|
7.88
|
%
|
7.56
|
%
|
RATE VOLUME ANALYSIS OF CHANGES IN NET INTEREST INCOME
|
||||||||||||||||||||||||
(Dollars in thousands on a tax equivalent basis)
|
||||||||||||||||||||||||
2018 vs 2017
|
2017 vs 2016
|
|||||||||||||||||||||||
Increase (decrease) due to change in
|
Increase (decrease) due to change in
|
|||||||||||||||||||||||
Volume
|
Rate
|
Net Change
|
Volume
|
Rate
|
Net Change
|
|||||||||||||||||||
Interest income*:
|
||||||||||||||||||||||||
Loans
|
$
|
730
|
$
|
580
|
$
|
1,310
|
$
|
2,243
|
$
|
962
|
$
|
3,205
|
||||||||||||
Investment securities
|
282
|
1,032
|
1,314
|
(269
|
)
|
403
|
134
|
|||||||||||||||||
Federal funds sold
|
70
|
105
|
175
|
9
|
40
|
49
|
||||||||||||||||||
Deposits with banks
|
695
|
143
|
838
|
(201
|
)
|
397
|
196
|
|||||||||||||||||
Total interest income
|
$
|
1,777
|
$
|
1,860
|
$
|
3,637
|
$
|
1,782
|
$
|
1,802
|
$
|
3,584
|
||||||||||||
Interest expense:
|
||||||||||||||||||||||||
Deposits
|
||||||||||||||||||||||||
NOW and money market
|
$
|
18
|
$
|
321
|
$
|
339
|
$
|
12
|
$
|
7
|
$
|
19
|
||||||||||||
Savings
|
4
|
99
|
103
|
11
|
(23
|
)
|
(12
|
)
|
||||||||||||||||
Certificates of deposit
|
35
|
1,112
|
1,147
|
(146
|
)
|
110
|
(36
|
)
|
||||||||||||||||
Short-term borrowings
|
(6
|
)
|
(20
|
)
|
(26
|
)
|
(2
|
)
|
18
|
16
|
||||||||||||||
Other borrowings
|
(134
|
)
|
(2
|
)
|
(136
|
)
|
(129
|
)
|
5
|
(124
|
)
|
|||||||||||||
FHLB borrowings
|
81
|
-
|
81
|
(43
|
)
|
-
|
(43
|
)
|
||||||||||||||||
Subordinated debt
|
2
|
55
|
57
|
9
|
30
|
39
|
||||||||||||||||||
Total interest expense
|
$
|
-
|
$
|
1,565
|
$
|
1,565
|
$
|
(288
|
)
|
$
|
147
|
$
|
(141
|
)
|
||||||||||
Net interest income*
|
$
|
1,777
|
$
|
295
|
$
|
2,072
|
$
|
2,070
|
$
|
1,655
|
$
|
3,725
|
||||||||||||
(*) Fully taxable equivalent using the rate of 21% for 2018 and 35% for 2017 and 2016
Note – Changes to rate/volume are allocated to both rate and volume on a proportional dollar basis
|
NON-INTEREST INCOME AND EXPENSE
|
||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||
Increase (Decrease) Over Prior Year
|
||||||||||||||||||||||||||
2018
|
2017
|
|||||||||||||||||||||||||
2018
|
2017
|
2016
|
Amount
|
Percent
|
Amount
|
Percent
|
||||||||||||||||||||
Non-interest income:
|
||||||||||||||||||||||||||
Service charges on deposit accounts
|
$
|
4,562
|
$
|
4,357
|
$
|
4,030
|
$
|
205
|
4.71
|
$
|
327
|
8.11
|
||||||||||||||
Electronic banking income
|
3,530
|
3,260
|
3,145
|
270
|
8.28
|
115
|
3.66
|
|||||||||||||||||||
Secondary market mortgage income
|
180
|
201
|
212
|
(21
|
)
|
(10.45
|
)
|
(11
|
)
|
(5.19
|
)
|
|||||||||||||||
Other
|
826
|
837
|
796
|
(11
|
)
|
(1.31
|
)
|
41
|
5.15
|
|||||||||||||||||
Total fees and other income
|
$
|
9,098
|
$
|
8,655
|
$
|
8,183
|
$
|
443
|
5.12
|
$
|
472
|
5.77
|
||||||||||||||
Investment securities gains
|
0
|
0
|
4
|
0
|
(4
|
)
|
||||||||||||||||||||
Total non-interest income
|
$
|
9,098
|
$
|
8,655
|
$
|
8,187
|
$
|
443
|
5.12
|
$
|
468
|
5.72
|
||||||||||||||
Non-interest expense:
|
||||||||||||||||||||||||||
Salaries and wages
|
$
|
16,118
|
$
|
15,595
|
$
|
15,671
|
$
|
523
|
3.35
|
$
|
(76
|
)
|
(0.48
|
)
|
||||||||||||
Employee benefits
|
3,685
|
3,760
|
4,134
|
(75
|
)
|
(1.99
|
)
|
(374
|
)
|
(9.05
|
)
|
|||||||||||||||
Total staff costs
|
19,803
|
19,355
|
19,805
|
448
|
2.31
|
(450
|
)
|
(2.27
|
)
|
|||||||||||||||||
Occupancy and equipment
|
6,294
|
5,999
|
6,266
|
295
|
4.92
|
(267
|
)
|
(4.26
|
)
|
|||||||||||||||||
Outside data processing
|
5,199
|
5,173
|
5,210
|
26
|
0.50
|
(37
|
)
|
(0.71
|
)
|
|||||||||||||||||
Professional fees
|
1,506
|
975
|
784
|
531
|
54.46
|
191
|
24.36
|
|||||||||||||||||||
Taxes, other than payroll, property and income
|
888
|
780
|
614
|
108
|
13.85
|
166
|
27.04
|
|||||||||||||||||||
Amortization of intangibles
|
778
|
974
|
1,139
|
(196
|
)
|
(20.12
|
)
|
(165
|
)
|
(14.49
|
)
|
|||||||||||||||
OREO gains, losses and expenses, net
|
244
|
1,601
|
1,826
|
(1,357
|
)
|
(84.76
|
)
|
(225
|
)
|
(12.32
|
)
|
|||||||||||||||
Loan collection expenses
|
746
|
627
|
435
|
119
|
18.98
|
192
|
44.14
|
|||||||||||||||||||
FDIC insurance
|
564
|
675
|
840
|
(111
|
)
|
(16.44
|
)
|
(165
|
)
|
(19.64
|
)
|
|||||||||||||||
Other expenses
|
4,449
|
4,059
|
4,274
|
390
|
9.61
|
(215
|
)
|
(5.03
|
)
|
|||||||||||||||||
Total non-interest expenses
|
$
|
40,471
|
$
|
40,218
|
$
|
41,193
|
$
|
253
|
0.63
|
$
|
(975
|
)
|
(2.37
|
)
|
A.
|
Management’s Report on Internal Control Over Financial Reporting
|
/s/ Robert W. Walker
|
/s/ Brien M. Chase
|
|
Robert W. Walker, President and
|
Brien M. Chase, Senior Vice President
|
|
Chief Executive Officer
|
and Chief Financial Officer
|
|
Date: March 18, 2019
|
Date: March 18, 2019
|
2018
|
2017
|
|||||||
ASSETS
|
||||||||
Cash and due from banks
|
$
|
22,992
|
$
|
40,814
|
||||
Interest bearing bank balances
|
39,911
|
37,191
|
||||||
Federal funds sold
|
17,872
|
4,658
|
||||||
Cash and cash equivalents
|
80,775
|
82,663
|
||||||
Time deposits with other banks
|
1,094
|
2,582
|
||||||
Securities available for sale
|
365,731
|
278,466
|
||||||
Loans
|
1,149,301
|
1,049,052
|
||||||
Allowance for loan losses
|
(13,738
|
)
|
(12,104
|
)
|
||||
Net loans
|
1,135,563
|
1,036,948
|
||||||
Federal Home Loan Bank stock, at cost
|
3,628
|
3,185
|
||||||
Premises and equipment, net
|
29,385
|
23,815
|
||||||
Other real estate owned, net
|
14,024
|
19,966
|
||||||
Interest receivable
|
4,295
|
4,043
|
||||||
Goodwill
|
47,640
|
35,371
|
||||||
Other intangible assets
|
5,268
|
3,375
|
||||||
Deferred taxes
|
1,541
|
485
|
||||||
Other assets
|
1,171
|
2,525
|
||||||
Total assets
|
$
|
1,690,115
|
$
|
1,493,424
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Deposits
|
||||||||
Non-interest bearing
|
$
|
391,763
|
$
|
332,588
|
||||
Time deposits, $250,000 and over
|
74,161
|
63,905
|
||||||
Other interest bearing
|
964,203
|
876,182
|
||||||
Total deposits
|
1,430,127
|
1,272,675
|
||||||
Securities sold under agreements to repurchase
|
22,062
|
23,310
|
||||||
Other borrowed funds
|
2,500
|
5,000
|
||||||
FHLB advances
|
8,819
|
-
|
||||||
Subordinated debt
|
5,406
|
5,376
|
||||||
Interest payable
|
733
|
393
|
||||||
Other liabilities
|
3,739
|
3,315
|
||||||
Total liabilities
|
1,473,386
|
1,310,069
|
||||||
Stockholders' equity
|
||||||||
Common stock, no par value; 30,000,000 shares authorized; 14,624,193 shares issued and outstanding in
2018, and 13,345,535 shares issued and outstanding in 2017
|
133,248
|
110,445
|
||||||
Retained earnings
|
87,333
|
74,983
|
||||||
Accumulated other comprehensive income (loss)
|
(3,852
|
)
|
(2,073
|
)
|
||||
Total stockholders' equity
|
216,729
|
183,355
|
||||||
Total liabilities and stockholders' equity
|
$
|
1,690,115
|
$
|
1,493,424
|
|
2018
|
2017
|
2016
|
||||||||||
Interest income
|
||||||||||||
Loans, including fees
|
$
|
56,856
|
$
|
55,425
|
$
|
52,228
|
||||||
Securities available for sale
|
||||||||||||
Taxable
|
7,022
|
5,628
|
5,350
|
|||||||||
Tax-exempt
|
254
|
261
|
332
|
|||||||||
Federal funds sold and other
|
1,689
|
676
|
431
|
|||||||||
Total interest income
|
65,821
|
61,990
|
58,341
|
|||||||||
Interest expense
|
||||||||||||
Deposits
|
5,444
|
3,855
|
3,884
|
|||||||||
Repurchase agreements and other
|
34
|
33
|
37
|
|||||||||
FHLB advances and other borrowings
|
237
|
319
|
466
|
|||||||||
Subordinated debt
|
352
|
295
|
256
|
|||||||||
Total interest expense
|
6,067
|
4,502
|
4,643
|
|||||||||
Net interest income
|
59,754
|
57,488
|
53,698
|
|||||||||
Provision for loan losses
|
2,315
|
2,499
|
1,748
|
|||||||||
Net interest income after provision for loan losses
|
57,439
|
54,989
|
51,950
|
|||||||||
Non-interest income
|
||||||||||||
Service charges on deposit accounts
|
4,562
|
4,357
|
4,030
|
|||||||||
Electronic banking income
|
3,530
|
3,260
|
3,145
|
|||||||||
Secondary market mortgage income
|
180
|
201
|
212
|
|||||||||
Gain on disposition of securities
|
-
|
-
|
4
|
|||||||||
Other
|
826
|
837
|
796
|
|||||||||
9,098
|
8,655
|
8,187
|
||||||||||
Non-interest expenses
|
||||||||||||
Salaries and employee benefits
|
19,803
|
19,355
|
19,805
|
|||||||||
Occupancy and equipment expenses
|
6,294
|
5,999
|
6,266
|
|||||||||
Outside data processing
|
5,199
|
5,173
|
5,210
|
|||||||||
Professional fees
|
1,506
|
975
|
784
|
|||||||||
Taxes, other than payroll, property and income
|
888
|
780
|
614
|
|||||||||
Write-downs, expenses, sales of other real estate owned, net
|
244
|
1,601
|
1,826
|
|||||||||
Loan collection expenses
|
746
|
627
|
435
|
|||||||||
FDIC insurance
|
564
|
675
|
840
|
|||||||||
Amortization of intangibles
|
778
|
974
|
1,139
|
|||||||||
Other expenses
|
4,449
|
4,059
|
4,274
|
|||||||||
40,471
|
40,218
|
41,193
|
||||||||||
Income before income taxes
|
26,066
|
23,426
|
18,944
|
|||||||||
Provision for income taxes
|
5,898
|
8,607
|
6,770
|
|||||||||
Net income
|
$
|
20,168
|
$
|
14,819
|
$
|
12,174
|
||||||
Earnings per share:
|
||||||||||||
Basic
|
$
|
1.48
|
$
|
1.11
|
$
|
0.92
|
||||||
Diluted
|
1.47
|
1.10
|
0.92
|
|||||||||
Dividends per share
|
0.57
|
0.48
|
0.45
|
2018
|
2017
|
2016
|
||||||||||
Net income
|
$
|
20,168
|
$
|
14,819
|
$
|
12,174
|
||||||
Other comprehensive income (loss):
|
||||||||||||
Unrealized gains (losses) arising during the period
|
(2,252
|
)
|
334
|
(3,446
|
)
|
|||||||
Reclassification of realized amount
|
-
|
-
|
(4
|
)
|
||||||||
Net change in unrealized gain (loss) on securities
|
(2,252
|
)
|
334
|
(3,450
|
)
|
|||||||
Less tax impact
|
(473
|
)
|
118
|
(1,207
|
)
|
|||||||
Other comprehensive income (loss):
|
(1,779
|
)
|
216
|
(2,243
|
)
|
|||||||
Comprehensive income
|
$
|
18,389
|
$
|
15,035
|
$
|
9,931
|
Common
Stock
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Total
|
|||||||||||||
Balances, January 1, 2016
|
$
|
69,319
|
$
|
77,592
|
$
|
321
|
$
|
147,232
|
||||||||
Net income
|
-
|
12,174
|
-
|
12,174
|
||||||||||||
Other comprehensive income (loss)
|
-
|
-
|
(2,243
|
)
|
(2,243
|
)
|
||||||||||
Cash dividends paid ($0.45 per share)
|
-
|
(5,933
|
)
|
-
|
(5,933
|
)
|
||||||||||
10% common stock dividend
|
17,622
|
(17,638
|
)
|
-
|
(16
|
)
|
||||||||||
Stock issued to acquire subsidiary, net
|
22,041
|
-
|
-
|
22,041
|
||||||||||||
Stock options exercised
|
751
|
-
|
-
|
751
|
||||||||||||
Stock based compensation expense
|
178
|
-
|
-
|
178
|
||||||||||||
Balances, December 31, 2016
|
109,911
|
66,195
|
(1,922
|
)
|
174,184
|
|||||||||||
Net income
|
-
|
14,819
|
-
|
14,819
|
||||||||||||
Other comprehensive income
|
-
|
-
|
216
|
216
|
||||||||||||
Cash dividends paid ($0.48 per share)
|
-
|
(6,398
|
)
|
-
|
(6,398
|
)
|
||||||||||
Reclassify stranded tax effects within AOCI
|
-
|
367
|
(367
|
)
|
-
|
|||||||||||
Stock options exercised
|
317
|
-
|
-
|
317
|
||||||||||||
Stock based compensation expense
|
217
|
-
|
-
|
217
|
||||||||||||
Balances, December 31, 2017
|
110,445
|
74,983
|
(2,073
|
)
|
183,355
|
|||||||||||
Net income
|
-
|
20,168
|
-
|
20,168
|
||||||||||||
Other comprehensive income (loss)
|
-
|
-
|
(1,779
|
)
|
(1,779
|
)
|
||||||||||
Cash dividends paid ($0.57 per share)
|
-
|
(7,805
|
)
|
-
|
(7,805
|
)
|
||||||||||
Cash in lieu of fractional share for 5 for 4 stock split
|
-
|
(13
|
)
|
-
|
(13
|
)
|
||||||||||
Stock issued to acquire subsidiary, net
|
22,358
|
-
|
-
|
22,358
|
||||||||||||
Stock options exercised
|
193
|
-
|
-
|
193
|
||||||||||||
Stock based compensation expense
|
252
|
-
|
-
|
252
|
||||||||||||
Balances, December 31, 2018
|
$
|
133,248
|
$
|
87,333
|
$
|
(3,852
|
)
|
$
|
216,729
|
2018
|
2017
|
2016
|
||||||||||
Cash flows from operating activities
|
||||||||||||
Net income
|
$
|
20,168
|
$
|
14,819
|
$
|
12,174
|
||||||
Adjustments to reconcile net income to net cash from operating activities
|
||||||||||||
Depreciation
|
1,722
|
1,720
|
1,934
|
|||||||||
Provision for loan losses
|
2,315
|
2,499
|
1,748
|
|||||||||
Amortization (accretion), net
|
1,295
|
1,586
|
2,624
|
|||||||||
Writedowns (gains) on other real estate owned, net
|
(450
|
)
|
874
|
689
|
||||||||
Stock compensation expense
|
252
|
217
|
178
|
|||||||||
Gain on the disposition of securities available for sale
|
-
|
-
|
(4
|
)
|
||||||||
Changes in:
|
||||||||||||
Interest receivable
|
300
|
(181
|
)
|
(102
|
)
|
|||||||
Deferred income taxes
|
33
|
797
|
(223
|
)
|
||||||||
Other assets
|
1,404
|
(1,047
|
)
|
(67
|
)
|
|||||||
Interest payable
|
157
|
29
|
(44
|
)
|
||||||||
Other liabilities
|
(62
|
)
|
(922
|
)
|
(938
|
)
|
||||||
Net cash from operating activities
|
27,134
|
20,391
|
17,969
|
|||||||||
Cash flows from investing activities
|
||||||||||||
Net change on time deposits with other banks
|
1,488
|
(250
|
)
|
2,141
|
||||||||
Purchases of securities available for sale
|
(110,869
|
)
|
(57,223
|
)
|
(44,835
|
)
|
||||||
Proceeds from maturities and calls of securities available for sale
|
65,181
|
65,794
|
82,332
|
|||||||||
Proceeds from the sale of securities available for sale
|
-
|
-
|
47
|
|||||||||
Redemption of FHLB stock
|
792
|
15
|
210
|
|||||||||
Acquisition of subsidiary, net of cash paid
|
2,591
|
-
|
11,912
|
|||||||||
Net change in loans
|
13,431
|
(36,792
|
)
|
(43,868
|
)
|
|||||||
Purchases of premises and equipment, net
|
(3,460
|
)
|
(1,382
|
)
|
(478
|
)
|
||||||
Proceeds from sales of other real estate owned
|
7,778
|
4,577
|
1,636
|
|||||||||
Net cash from (used in) investing activities
|
(23,068
|
)
|
(25,261
|
)
|
9,097
|
2018
|
2017
|
2016
|
||||||||||
Cash flows from financing activities
|
||||||||||||
Net change in deposits
|
25,280
|
(6,735
|
)
|
14,048
|
||||||||
Net change in agreements to repurchase securities
|
(1,609
|
)
|
(510
|
)
|
(42
|
)
|
||||||
Repayment of other borrowed funds
|
(2,500
|
)
|
(3,859
|
)
|
(2,433
|
)
|
||||||
Repayment of other FHLB advances
|
(19,500
|
)
|
-
|
(1,262
|
)
|
|||||||
Proceeds from stock option exercises
|
193
|
317
|
751
|
|||||||||
Cash in lieu of fractional shares
|
(13
|
)
|
-
|
(16
|
)
|
|||||||
Common stock dividends paid
|
(7,805
|
)
|
(6,398
|
)
|
(5,933
|
)
|
||||||
Net cash from (used in) financing activities
|
(5,954
|
)
|
(17,185
|
)
|
5,113
|
|||||||
Net change in cash and cash equivalents
|
(1,888
|
)
|
(22,055
|
)
|
32,179
|
|||||||
Cash and cash equivalents at beginning of year
|
82,663
|
104,718
|
72,539
|
|||||||||
Cash and cash equivalents at end of year
|
$
|
80,775
|
$
|
82,663
|
$
|
104,718
|
||||||
Supplemental disclosures of cash flow information:
|
||||||||||||
Cash paid during year for -
|
||||||||||||
Interest
|
$
|
5,911
|
$
|
4,473
|
$
|
4,686
|
||||||
Income taxes paid, net
|
4,578
|
8,555
|
7,123
|
|||||||||
Non-cash transactions
|
||||||||||||
Loans transferred to real estate acquired through foreclosure
|
$
|
1,386
|
$
|
12,681
|
$
|
1,950
|
||||||
Amount transferred from accumulated other comprehensive income to retained earnings related to changes
in future income tax rates
|
$
|
367
|
||||||||||
Amount transferred from retained earnings to common stock related to stock dividend
|
$
|
17,638
|
||||||||||
Common stock issued to acquire First Bank
|
$
|
22,358
|
||||||||||
Common stock issued to acquire Bankshares
|
$
|
22,041
|
Unaudited
|
||||||||||||
December 31, 2018
|
||||||||||||
Subsidiary
|
Location
|
Year
Acquired
|
Total
Assets
|
Net
Income
|
||||||||
Citizens Deposit Bank & Trust
|
Vanceburg, Kentucky
|
1991
|
$
|
444,779
|
$
|
5,646
|
||||||
Premier Bank, Inc.
|
Huntington, West Virginia
|
1998
|
1,238,223
|
17,026
|
||||||||
Parent and Intercompany Eliminations
|
7,113
|
(2,504
|
)
|
|||||||||
Consolidated total
|
$
|
1,690,115
|
$
|
20,168
|
2018
|
$
|
67
|
||
2019
|
390
|
|||
2020
|
332
|
|||
2021
|
282
|
|||
2022
|
244
|
|||
2023
|
232
|
|||
Thereafter
|
1,123
|
|||
Total core deposit intangible acquired
|
$
|
2,670
|
First Bank of Charleston
|
||||
Cash and due from banks, net of cash paid
|
$
|
543
|
||
Federal funds sold
|
2,048
|
|||
Securities available for sale
|
45,218
|
|||
Loans, net
|
114,771
|
|||
Premises and equipment
|
3,832
|
|||
Goodwill and other intangible assets
|
14,939
|
|||
Other assets
|
2,453
|
|||
Total assets acquired, net of cash paid
|
183,804
|
|||
Deposits
|
(132,111
|
)
|
||
Repurchase agreements
|
(361
|
)
|
||
FHLB borrowings
|
(28,305
|
)
|
||
Other liabilities
|
(669
|
)
|
||
Total liabilities assumed
|
(161,446
|
)
|
||
Net assets acquired
|
$
|
22,358
|
2018
|
Amortized Cost
|
Unrealized Gains
|
Unrealized Losses
|
Fair Value
|
||||||||||||
Available for sale
|
||||||||||||||||
Mortgage-backed securities
|
||||||||||||||||
U. S. sponsored agency MBS - residential
|
$
|
259,575
|
$
|
513
|
$
|
(4,846
|
)
|
$
|
255,242
|
|||||||
U. S. sponsored agency CMO’s - residential
|
69,231
|
94
|
(782
|
)
|
68,543
|
|||||||||||
Total mortgage-backed securities of government sponsored agencies
|
328,806
|
607
|
(5,628
|
)
|
323,785
|
|||||||||||
U. S. government sponsored agency securities
|
24,154
|
196
|
(180
|
)
|
24,170
|
|||||||||||
Obligations of states and political subdivisions
|
14,194
|
176
|
(43
|
)
|
14,327
|
|||||||||||
Other securities
|
3,453
|
6
|
(10
|
)
|
3,449
|
|||||||||||
Total securities available for sale
|
$
|
370,607
|
$
|
985
|
$
|
(5,861
|
)
|
$
|
365,731
|
2017
|
Amortized Cost
|
Unrealized Gains
|
Unrealized Losses
|
Fair Value
|
||||||||||||
Available for sale
|
||||||||||||||||
Mortgage-backed securities
|
||||||||||||||||
U. S. sponsored agency MBS - residential
|
$
|
198,631
|
$
|
175
|
$
|
(2,216
|
)
|
$
|
196,590
|
|||||||
U. S. sponsored agency CMO’s - residential
|
51,548
|
241
|
(681
|
)
|
51,108
|
|||||||||||
Total mortgage-backed securities of government sponsored agencies
|
250,179
|
416
|
(2,897
|
)
|
247,698
|
|||||||||||
U. S. government sponsored agency securities
|
19,312
|
1
|
(179
|
)
|
19,134
|
|||||||||||
Obligations of states and political subdivisions
|
11,599
|
61
|
(26
|
)
|
11,634
|
|||||||||||
Total securities available for sale
|
$
|
281,090
|
$
|
478
|
$
|
(3,102
|
)
|
$
|
278,466
|
Amortized
Cost
|
Fair
Value
|
|||||||
Available for sale
|
||||||||
Due in one year or less
|
$
|
6,875
|
$
|
6,832
|
||||
Due after one year through five years
|
21,507
|
21,457
|
||||||
Due after five years through ten years
|
7,992
|
8,097
|
||||||
Due after ten years
|
4,927
|
5,060
|
||||||
Corporate preferred securities
|
500
|
500
|
||||||
Mortgage-backed securities of government sponsored agencies
|
328,806
|
323,785
|
||||||
Total available for sale
|
$
|
370,607
|
$
|
365,731
|
Less than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
Description of Securities
|
Fair Value
|
Unrealized Loss
|
Fair Value
|
Unrealized Loss
|
Fair Value
|
Unrealized Loss
|
||||||||||||||||||
U.S government sponsored agency securities
|
$
|
999
|
$
|
-
|
$
|
11,057
|
$
|
(180
|
)
|
$
|
12,056
|
$
|
(180
|
)
|
||||||||||
U.S government sponsored agency MBS – residential
|
50,923
|
(243
|
)
|
158,791
|
(4,603
|
)
|
209,714
|
(4,846
|
)
|
|||||||||||||||
U.S government sponsored agency CMO’s – residential
|
16,359
|
(41
|
)
|
26,386
|
(741
|
)
|
42,745
|
(782
|
)
|
|||||||||||||||
Obligations of states and political subdivisions
|
679
|
(6
|
)
|
3,454
|
(37
|
)
|
4,133
|
(43
|
)
|
|||||||||||||||
Other securities
|
1,712
|
(10
|
)
|
-
|
-
|
1,712
|
(10
|
)
|
||||||||||||||||
Total temporarily impaired
|
$
|
70,672
|
$
|
(300
|
)
|
$
|
199,688
|
$
|
(5,561
|
)
|
$
|
270,360
|
$
|
(5,861
|
)
|
Less than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
Description of Securities
|
Fair Value
|
Unrealized Loss
|
Fair Value
|
Unrealized Loss
|
Fair Value
|
Unrealized Loss
|
||||||||||||||||||
U.S government sponsored agency securities
|
$
|
6,780
|
$
|
(41
|
)
|
$
|
10,335
|
$
|
(138
|
)
|
$
|
17,115
|
$
|
(179
|
)
|
|||||||||
U.S government sponsored agency MBS – residential
|
134,211
|
(1,076
|
)
|
47,682
|
(1,140
|
)
|
181,893
|
(2,216
|
)
|
|||||||||||||||
U.S government sponsored agency CMO’s – residential
|
8,306
|
(64
|
)
|
17,868
|
(617
|
)
|
26,174
|
(681
|
)
|
|||||||||||||||
Obligations of states and political subdivisions
|
3,512
|
(20
|
)
|
474
|
(6
|
)
|
3,986
|
(26
|
)
|
|||||||||||||||
Total temporarily impaired
|
$
|
152,809
|
$
|
(1,201
|
)
|
$
|
76,359
|
$
|
(1,901
|
)
|
$
|
229,168
|
$
|
(3,102
|
)
|
2018
|
2017
|
|||||||
Residential real estate
|
$
|
381,027
|
$
|
338,829
|
||||
Multifamily real estate
|
54,016
|
62,151
|
||||||
Commercial real estate:
|
||||||||
Owner occupied
|
138,209
|
136,048
|
||||||
Non-owner occupied
|
282,608
|
230,702
|
||||||
Commercial and industrial
|
103,624
|
78,259
|
||||||
Consumer
|
27,688
|
28,293
|
||||||
Construction and land
|
128,926
|
139,012
|
||||||
All other
|
33,203
|
35,758
|
||||||
Total
|
$
|
1,149,301
|
$
|
1,049,052
|
2018
|
||||
Residential real estate
|
$
|
42,418
|
||
Multifamily real estate
|
3,034
|
|||
Commercial real estate:
|
||||
Owner occupied
|
8,220
|
|||
Non owner occupied
|
36,698
|
|||
Commercial and industrial
|
22,498
|
|||
Consumer
|
1,100
|
|||
Construction and land
|
803
|
|||
Total
|
$
|
114,771
|
Balance, December 31, 2017
|
$
|
3,417
|
||
Additions, including loans now meeting disclosure requirements
|
10,341
|
|||
Amounts collected and loans no longer meeting disclosure requirements
|
(785
|
)
|
||
Balance, December 31, 2018
|
$
|
12,973
|
Loan Class
|
Balance
Dec 31, 2017
|
Provision (credit) for loan losses
|
Loans charged-off
|
Recoveries
|
Balance
Dec 31, 2018
|
|||||||||||||||
Residential real estate
|
$
|
2,986
|
$
|
(967
|
)
|
$
|
(247
|
)
|
$
|
36
|
$
|
1,808
|
||||||||
Multifamily real estate
|
978
|
676
|
(11
|
)
|
6
|
1,649
|
||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
1,653
|
491
|
(25
|
)
|
1
|
2,120
|
||||||||||||||
Non-owner occupied
|
2,313
|
839
|
(98
|
)
|
4
|
3,058
|
||||||||||||||
Commercial and industrial
|
1,101
|
1,298
|
(545
|
)
|
43
|
1,897
|
||||||||||||||
Consumer
|
328
|
121
|
(156
|
)
|
58
|
351
|
||||||||||||||
Construction and land
|
2,408
|
(533
|
)
|
(20
|
)
|
400
|
2,255
|
|||||||||||||
All other
|
337
|
390
|
(266
|
)
|
139
|
600
|
||||||||||||||
Total
|
$
|
12,104
|
$
|
2,315
|
$
|
(1,368
|
)
|
$
|
687
|
$
|
13,738
|
Loan Class
|
Balance
Dec 31, 2016
|
Provision (credit) for loan losses
|
Loans charged-off
|
Recoveries
|
Balance
Dec 31, 2017
|
|||||||||||||||
Residential real estate
|
$
|
2,948
|
$
|
439
|
$
|
(458
|
)
|
$
|
57
|
$
|
2,986
|
|||||||||
Multifamily real estate
|
785
|
693
|
(500
|
)
|
-
|
978
|
||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
1,543
|
(100
|
)
|
(32
|
)
|
242
|
1,653
|
|||||||||||||
Non-owner occupied
|
2,350
|
(27
|
)
|
(10
|
)
|
-
|
2,313
|
|||||||||||||
Commercial and industrial
|
1,140
|
51
|
(189
|
)
|
99
|
1,101
|
||||||||||||||
Consumer
|
347
|
132
|
(278
|
)
|
127
|
328
|
||||||||||||||
Construction and land
|
1,397
|
1,130
|
(129
|
)
|
10
|
2,408
|
||||||||||||||
All other
|
326
|
181
|
(307
|
)
|
137
|
337
|
||||||||||||||
Total
|
$
|
10,836
|
$
|
2,499
|
$
|
(1,903
|
)
|
$
|
672
|
$
|
12,104
|
Loan Class
|
Balance
Dec 31, 2015
|
Provision (credit) for loan losses
|
Loans charged-off
|
Recoveries
|
Balance
Dec 31, 2016
|
|||||||||||||||
Residential real estate
|
$
|
2,501
|
$
|
608
|
$
|
(209
|
)
|
$
|
48
|
$
|
2,948
|
|||||||||
Multifamily real estate
|
821
|
(36
|
)
|
-
|
-
|
785
|
||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
1,509
|
46
|
(14
|
)
|
2
|
1,543
|
||||||||||||||
Non-owner occupied
|
2,070
|
380
|
(100
|
)
|
-
|
2,350
|
||||||||||||||
Commercial and industrial
|
1,033
|
136
|
(74
|
)
|
45
|
1,140
|
||||||||||||||
Consumer
|
307
|
294
|
(340
|
)
|
86
|
347
|
||||||||||||||
Construction and land
|
1,061
|
193
|
-
|
143
|
1,397
|
|||||||||||||||
All other
|
345
|
127
|
(273
|
)
|
127
|
326
|
||||||||||||||
Total
|
$
|
9,647
|
$
|
1,748
|
$
|
(1,010
|
)
|
$
|
451
|
$
|
10,836
|
2018
|
2017
|
|||||||
Residential real estate
|
$
|
2,665
|
$
|
1,321
|
||||
Commercial real estate
|
||||||||
Owner occupied
|
2,040
|
1,508
|
||||||
Non-owner occupied
|
3,434
|
-
|
||||||
Commercial and industrial
|
1,720
|
211
|
||||||
Construction and land
|
1,212
|
1,450
|
||||||
All other
|
225
|
286
|
||||||
Total carrying amount
|
$
|
11,296
|
$
|
4,776
|
||||
Contractual principal balance
|
$
|
15,436
|
$
|
6,728
|
||||
Carrying amount, net of allowance
|
$
|
11,296
|
$
|
4,676
|
2018
|
2017
|
2016
|
||||||||||
Balance at January 1
|
$
|
754
|
$
|
1,208
|
$
|
185
|
||||||
New loans purchased
|
139
|
-
|
1,151
|
|||||||||
Accretion of income
|
(134
|
)
|
(249
|
)
|
(128
|
)
|
||||||
Loans placed on non-accrual
|
(63
|
)
|
-
|
-
|
||||||||
Income recognized upon full repayment
|
(38
|
)
|
(205
|
)
|
-
|
|||||||
Reclassifications from non-accretable difference
|
(16
|
)
|
-
|
-
|
||||||||
Disposals
|
-
|
-
|
-
|
|||||||||
Balance at December 31
|
$
|
642
|
$
|
754
|
$
|
1,208
|
December 31, 2018
|
Principal Owed on Non-accrual Loans
|
Recorded Investment in Non-accrual Loans
|
Loans Past Due Over 90 Days, still accruing
|
|||||||||
Residential real estate
|
$
|
4,966
|
$
|
3,708
|
$
|
954
|
||||||
Multifamily real estate
|
4,127
|
3,905
|
-
|
|||||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
3,692
|
3,436
|
56
|
|||||||||
Non-owner occupied
|
5,761
|
4,592
|
76
|
|||||||||
Commercial and industrial
|
1,303
|
625
|
-
|
|||||||||
Consumer
|
292
|
253
|
-
|
|||||||||
Construction and land
|
857
|
856
|
-
|
|||||||||
All other
|
75
|
73
|
-
|
|||||||||
Total
|
$
|
21,073
|
$
|
17,448
|
$
|
1,086
|
December 31, 2017
|
Principal Owed on Non-accrual Loans
|
Recorded Investment in Non-accrual Loans
|
Loans Past Due Over 90 Days, still accruing
|
|||||||||
Residential real estate
|
$
|
2,944
|
$
|
2,422
|
$
|
869
|
||||||
Multifamily real estate
|
2,128
|
2,128
|
334
|
|||||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
2,623
|
2,483
|
134
|
|||||||||
Non-owner occupied
|
1,862
|
1,755
|
85
|
|||||||||
Commercial and industrial
|
1,313
|
544
|
1,139
|
|||||||||
Consumer
|
268
|
241
|
-
|
|||||||||
Construction and land
|
5,824
|
5,673
|
830
|
|||||||||
Total
|
$
|
16,962
|
$
|
15,246
|
$
|
3,391
|
Loan Class
|
Total Loans
|
30-89 Days Past Due
|
Greater than 90 days past due
|
Total Past Due
|
Loans Not
Past Due
|
|||||||||||||||
Residential real estate
|
$
|
381,027
|
$
|
7,078
|
$
|
2,594
|
$
|
9,672
|
$
|
371,355
|
||||||||||
Multifamily real estate
|
54,016
|
-
|
110
|
110
|
53,906
|
|||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
138,209
|
124
|
2,601
|
2,725
|
135,484
|
|||||||||||||||
Non-owner occupied
|
282,608
|
172
|
3,301
|
3,473
|
279,135
|
|||||||||||||||
Commercial and industrial
|
103,624
|
2,235
|
262
|
2,497
|
101,127
|
|||||||||||||||
Consumer
|
27,688
|
247
|
112
|
359
|
27,329
|
|||||||||||||||
Construction and land
|
128,926
|
388
|
810
|
1,198
|
127,728
|
|||||||||||||||
All other
|
33,203
|
546
|
73
|
619
|
32,584
|
|||||||||||||||
Total
|
$
|
1,149,301
|
$
|
10,790
|
$
|
9,863
|
$
|
20,653
|
$
|
1,128,648
|
Loan Class
|
Total Loans
|
30-89 Days Past Due
|
Greater than 90 days past due
|
Total Past Due
|
Loans Not
Past Due
|
|||||||||||||||
Residential real estate
|
$
|
338,829
|
$
|
5,242
|
$
|
1,835
|
$
|
7,077
|
$
|
331,752
|
||||||||||
Multifamily real estate
|
62,151
|
-
|
334
|
334
|
61,817
|
|||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
136,048
|
311
|
1,784
|
2,095
|
133,953
|
|||||||||||||||
Non-owner occupied
|
230,702
|
12
|
225
|
237
|
230,465
|
|||||||||||||||
Commercial and industrial
|
78,259
|
123
|
1,611
|
1,734
|
76,525
|
|||||||||||||||
Consumer
|
28,293
|
492
|
87
|
579
|
27,714
|
|||||||||||||||
Construction and land
|
139,012
|
144
|
2,508
|
2,652
|
136,360
|
|||||||||||||||
All other
|
35,758
|
-
|
-
|
-
|
35,758
|
|||||||||||||||
Total
|
$
|
1,049,052
|
$
|
6,324
|
$
|
8,384
|
$
|
14,708
|
$
|
1,034,344
|
December 31, 2018
|
Allowance for Loan Losses
|
Loan Balances
|
||||||||||||||||||||||||||||||
Loan Class
|
Individually Evaluated for Impairment
|
Collectively Evaluated for Impairment
|
Acquired with Deteriorated Credit Quality
|
Total
|
Individually Evaluated for Impairment
|
Collectively Evaluated for Impairment
|
Acquired with Deteriorated Credit Quality
|
Total
|
||||||||||||||||||||||||
Residential real estate
|
$
|
-
|
$
|
1,808
|
$
|
-
|
$
|
1,808
|
$
|
298
|
$
|
378,064
|
$
|
2,665
|
$
|
381,027
|
||||||||||||||||
Multifamily real estate
|
1,281
|
368
|
-
|
1,649
|
3,905
|
50,111
|
-
|
54,016
|
||||||||||||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||||||||||
Owner occupied
|
692
|
1,428
|
-
|
2,120
|
2,820
|
133,349
|
2,040
|
138,209
|
||||||||||||||||||||||||
Non-owner occupied
|
267
|
2,791
|
-
|
3,058
|
10,111
|
269,063
|
3,434
|
282,608
|
||||||||||||||||||||||||
Commercial and industrial
|
414
|
1,483
|
-
|
1,897
|
558
|
101,346
|
1,720
|
103,624
|
||||||||||||||||||||||||
Consumer
|
-
|
351
|
-
|
351
|
-
|
27,688
|
-
|
27,688
|
||||||||||||||||||||||||
Construction and land
|
142
|
2,113
|
-
|
2,255
|
1,351
|
126,363
|
1,212
|
128,926
|
||||||||||||||||||||||||
All other
|
-
|
600
|
-
|
600
|
-
|
32,978
|
225
|
33,203
|
||||||||||||||||||||||||
Total
|
$
|
2,796
|
$
|
10,942
|
$
|
-
|
$
|
13,738
|
$
|
19,043
|
$
|
1,118,962
|
$
|
11,296
|
$
|
1,149,301
|
December 31, 2017
|
Allowance for Loan Losses
|
Loan Balances
|
||||||||||||||||||||||||||||||
Loan Class
|
Individually Evaluated for Impairment
|
Collectively Evaluated for Impairment
|
Acquired with Deteriorated Credit Quality
|
Total
|
Individually Evaluated for Impairment
|
Collectively Evaluated for Impairment
|
Acquired with Deteriorated Credit Quality
|
Total
|
||||||||||||||||||||||||
Residential real estate
|
$
|
-
|
$
|
2,986
|
$
|
-
|
$
|
2,986
|
$
|
308
|
$
|
337,200
|
$
|
1,321
|
$
|
338,829
|
||||||||||||||||
Multifamily real estate
|
218
|
760
|
-
|
978
|
2,462
|
59,689
|
-
|
62,151
|
||||||||||||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||||||||||
Owner occupied
|
307
|
1,346
|
-
|
1,653
|
3,314
|
131,226
|
1,508
|
136,048
|
||||||||||||||||||||||||
Non-owner occupied
|
88
|
2,225
|
-
|
2,313
|
11,578
|
219,124
|
-
|
230,702
|
||||||||||||||||||||||||
Commercial and industrial
|
104
|
897
|
100
|
1,101
|
1,304
|
76,744
|
211
|
78,259
|
||||||||||||||||||||||||
Consumer
|
-
|
328
|
-
|
328
|
-
|
28,293
|
-
|
28,293
|
||||||||||||||||||||||||
Construction and land
|
685
|
1,723
|
-
|
2,408
|
5,672
|
131,890
|
1,450
|
139,012
|
||||||||||||||||||||||||
All other
|
-
|
337
|
-
|
337
|
293
|
35,179
|
286
|
35,758
|
||||||||||||||||||||||||
Total
|
$
|
1,402
|
$
|
10,602
|
$
|
100
|
$
|
12,104
|
$
|
24,931
|
$
|
1,019,345
|
$
|
4,776
|
$
|
1,049,052
|
Unpaid Principal Balance
|
Recorded Investment
|
Allowance for Loan Losses Allocated
|
||||||||||
With no related allowance recorded:
|
||||||||||||
Residential real estate
|
$
|
426
|
$
|
298
|
$
|
-
|
||||||
Multifamily real estate
|
110
|
110
|
-
|
|||||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
1,305 |
1,092 |
-
|
|||||||||
Non-owner occupied
|
8,458 |
7,740
|
-
|
|||||||||
Commercial and industrial
|
531
|
-
|
-
|
|||||||||
Construction and land
|
786
|
786
|
-
|
|||||||||
11,616 |
10,026 |
-
|
||||||||||
With an allowance recorded:
|
||||||||||||
Multifamily real estate
|
$
|
4,016
|
$
|
3,795
|
$
|
1,281
|
||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
2,523
|
2,478
|
692
|
|||||||||
Non-owner occupied
|
2,852
|
2,781
|
267
|
|||||||||
Commercial and industrial
|
562
|
558
|
414
|
|||||||||
Construction and land
|
565
|
565
|
142
|
|||||||||
10,518
|
10,177
|
2,796
|
||||||||||
Total
|
$
|
22,134
|
$
|
20,203 |
$
|
2,796
|
Unpaid Principal Balance
|
Recorded Investment
|
Allowance for Loan Losses Allocated
|
||||||||||
With no related allowance recorded:
|
||||||||||||
Residential real estate
|
$
|
446
|
$
|
308
|
$
|
-
|
||||||
Multifamily real estate
|
334
|
334
|
-
|
|||||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
2,451
|
2,439
|
-
|
|||||||||
Non-owner occupied
|
9,602
|
9,506
|
-
|
|||||||||
Commercial and industrial
|
1,719
|
1,188
|
-
|
|||||||||
Construction and land
|
1,798
|
1,678
|
-
|
|||||||||
All other
|
293
|
293
|
-
|
|||||||||
16,643
|
15,746
|
-
|
||||||||||
With an allowance recorded:
|
||||||||||||
Multifamily real estate
|
$
|
2,128
|
$
|
2,128
|
$
|
218
|
||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
895
|
875
|
307
|
|||||||||
Non-owner occupied
|
2,072
|
2,072
|
88
|
|||||||||
Commercial and industrial
|
466
|
315
|
204
|
|||||||||
Construction and land
|
4,024
|
3,994
|
685
|
|||||||||
9,585
|
9,384
|
1,502
|
||||||||||
Total
|
$
|
26,228
|
$
|
25,130
|
$
|
1,502
|
Year ended Dec 31, 2018
|
Year ended Dec 31, 2017
|
Year ended Dec 31, 2016
|
||||||||||||||||||||||||||||||||||
Loan Class
|
Average Recorded Investment
|
Interest Income Recognized
|
Cash Basis Interest Recognized
|
Average Recorded Investment
|
Interest Income Recognized
|
Cash Basis Interest Recognized
|
Average Recorded Investment
|
Interest Income Recognized
|
Cash Basis Interest Recognized
|
|||||||||||||||||||||||||||
Residential real estate
|
$
|
300
|
$
|
-
|
$
|
-
|
$
|
333
|
$
|
3
|
$
|
3
|
$
|
566
|
$
|
21
|
$
|
18
|
||||||||||||||||||
Multifamily real estate
|
2,534
|
11
|
11
|
11,376
|
262
|
246
|
3,993
|
198
|
181
|
|||||||||||||||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||||||||||||||
Owner occupied
|
3,094
|
57
|
57
|
3,335
|
74
|
74
|
1,475
|
19
|
16
|
|||||||||||||||||||||||||||
Non-owner occupied
|
9,226
|
412
|
412
|
4,680
|
213
|
213
|
4,527
|
314
|
314
|
|||||||||||||||||||||||||||
Commercial and industrial
|
904
|
22
|
22
|
1,480
|
123
|
123
|
1,249
|
36
|
35
|
|||||||||||||||||||||||||||
Construction and land
|
3,977
|
24
|
15
|
7,804
|
314
|
309
|
5,010
|
211
|
19
|
|||||||||||||||||||||||||||
All other
|
173
|
10
|
10
|
302
|
18
|
18
|
147
|
8
|
8
|
|||||||||||||||||||||||||||
Total
|
$
|
20,208
|
$
|
536
|
$
|
527
|
$
|
29,310
|
$
|
1,007
|
$
|
986
|
$
|
16,967
|
$
|
807
|
$
|
591
|
December 31, 2018
|
TDR’s on Non-accrual
|
Other TDR’s
|
Total TDR’s
|
|||||||||
Residential real estate
|
$
|
347
|
$
|
97
|
$
|
444
|
||||||
Multifamily real estate
|
3,795
|
-
|
3,795
|
|||||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
1,647
|
222
|
1,869
|
|||||||||
Non-owner occupied
|
-
|
5,964
|
5,964
|
|||||||||
Commercial and industrial
|
191
|
-
|
191
|
|||||||||
Total
|
$
|
5,980
|
$
|
6,283
|
$
|
12,263
|
December 31, 2017
|
TDR’s on Non-accrual
|
Other TDR’s
|
Total TDR’s
|
|||||||||
Residential real estate
|
$
|
393
|
$
|
107
|
$
|
500
|
||||||
Multifamily real estate
|
2,128
|
-
|
2,128
|
|||||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
601
|
1,783
|
2,384
|
|||||||||
Non-owner occupied
|
-
|
9,904
|
9,904
|
|||||||||
Commercial and industrial
|
56
|
497
|
553
|
|||||||||
Construction and land
|
3,994
|
-
|
3,994
|
|||||||||
All other
|
-
|
293
|
293
|
|||||||||
Total
|
$
|
7,172
|
$
|
12,584
|
$
|
19,756
|
Year ended December 31, 2017
|
||||||||||||
Loan Class
|
Number of Loans
|
Pre-Modification Outstanding Recorded Investment
|
Post-Modification Outstanding Recorded Investment
|
|||||||||
Residential real estate
|
1
|
$
|
82
|
$
|
82
|
|||||||
Commercial real estate
|
||||||||||||
Owner occupied
|
2
|
1,525
|
1,525
|
|||||||||
Non-owner occupied
|
3
|
9,913
|
9,913
|
|||||||||
Commercial and industrial
|
1
|
191
|
191
|
|||||||||
Total
|
7
|
$
|
11,711
|
$
|
11,711
|
Loan Class
|
Pass
|
Special Mention
|
Substandard
|
Doubtful
|
Total Loans
|
|||||||||||||||
Residential real estate
|
$
|
369,808
|
$
|
1,376
|
$
|
9,681
|
$
|
162
|
$
|
381,027
|
||||||||||
Multifamily real estate
|
45,187
|
4,924
|
3,905
|
-
|
54,016
|
|||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
126,422
|
4,840
|
6,947
|
-
|
138,209
|
|||||||||||||||
Non-owner occupied
|
262,149
|
7,647
|
12,812
|
-
|
282,608
|
|||||||||||||||
Commercial and industrial
|
96,066
|
5,280
|
2,278
|
-
|
103,624
|
|||||||||||||||
Consumer
|
27,344
|
31
|
313
|
-
|
27,688
|
|||||||||||||||
Construction and land
|
107,196
|
19,728
|
2,002
|
-
|
128,926
|
|||||||||||||||
All other
|
32,749
|
381
|
73
|
-
|
33,203
|
|||||||||||||||
Total
|
$
|
1,066,921
|
$
|
44,207
|
$
|
38,011
|
$
|
162
|
$
|
1,149,301
|
Loan Class
|
Pass
|
Special Mention
|
Substandard
|
Doubtful
|
Total Loans
|
|||||||||||||||
Residential real estate
|
$
|
327,185
|
$
|
667
|
$
|
10,976
|
$
|
1
|
$
|
338,829
|
||||||||||
Multifamily real estate
|
55,084
|
4,605
|
2,462
|
-
|
62,151
|
|||||||||||||||
Commercial real estate:
|
||||||||||||||||||||
Owner occupied
|
124,244
|
4,937
|
6,867
|
-
|
136,048
|
|||||||||||||||
Non-owner occupied
|
216,079
|
2,428
|
12,195
|
-
|
230,702
|
|||||||||||||||
Commercial and industrial
|
70,078
|
5,851
|
2,330
|
-
|
78,259
|
|||||||||||||||
Consumer
|
27,889
|
-
|
404
|
-
|
28,293
|
|||||||||||||||
Construction and land
|
126,323
|
5,460
|
7,229
|
-
|
139,012
|
|||||||||||||||
All other
|
34,468
|
795
|
495
|
-
|
35,758
|
|||||||||||||||
Total
|
$
|
981,350
|
$
|
24,743
|
$
|
42,958
|
$
|
1
|
$
|
1,049,052
|
2018
|
2017
|
|||||||
Land and improvements
|
$
|
7,200
|
$
|
5,642
|
||||
Buildings and leasehold improvements
|
26,033
|
21,539
|
||||||
Furniture and equipment
|
11,623
|
10,651
|
||||||
Assets purchased not yet placed in service
|
424
|
571
|
||||||
45,280
|
38,403
|
|||||||
Less: accumulated depreciation
|
(15,895
|
)
|
(14,588
|
)
|
||||
$
|
29,385
|
$
|
23,815
|
2019
|
$
|
1,071
|
||
2020
|
1,036
|
|||
2021
|
1,033
|
|||
2022
|
982
|
|||
2023
|
548
|
|||
Thereafter
|
101
|
|||
$
|
4,771
|
2018
|
2017
|
2016
|
||||||||||
Beginning of year
|
$
|
35,371
|
$
|
35,371
|
$
|
33,796
|
||||||
Acquired goodwill
|
12,269
|
-
|
1,575
|
|||||||||
Impairment
|
-
|
-
|
-
|
|||||||||
End of year
|
$
|
47,640
|
$
|
35,371
|
$
|
35,371
|
2018
|
2017
|
|||||||||||||||
Gross Carrying
Amount
|
Accumulated Amortization
|
Gross Carrying
Amount
|
Accumulated Amortization
|
|||||||||||||
Core deposit intangible
|
$
|
7,708
|
$
|
(2,440
|
)
|
$
|
7,046
|
$
|
(3,671
|
)
|
2019
|
$
|
885
|
||
2020
|
807
|
|||
2021
|
756
|
|||
2022
|
578
|
|||
2023
|
520
|
|||
Thereafter
|
1,722
|
|||
$
|
5,268
|
2019
|
$
|
263,888
|
||
2020
|
73,756
|
|||
2021
|
31,194
|
|||
2022
|
11,894
|
|||
2023
|
9,839
|
|||
Thereafter
|
126
|
|||
$
|
390,697
|
2018
|
2017
|
|||||||
Year-end balance
|
$
|
22,062
|
$
|
23,310
|
||||
Average balance during the year
|
$
|
22,343
|
$
|
22,845
|
||||
Average interest rate during the year
|
0.14
|
%
|
0.13
|
%
|
||||
Maximum month-end balance during the year
|
$
|
25,067
|
$
|
25,116
|
||||
Weighted average interest rate at year-end
|
0.14
|
%
|
0.13
|
%
|
2019
|
$
|
2,444
|
||
2020
|
6,375 |
|||
Carrying amount outstanding at December 31, 2018
|
$
|
8,819
|
2019
|
1,716
|
|||
2020
|
784
|
|||
$
|
2,500
|
2018
|
2017
|
2016
|
||||||||||
Current
|
$
|
5,782
|
$
|
7,809
|
$
|
6,993
|
||||||
Write-off of deferred tax asset related to 2017 Tax Cuts and Jobs Act.
|
-
|
145
|
-
|
|||||||||
Deferred
|
120
|
637
|
(223
|
)
|
||||||||
Change in valuation allowance
|
(4
|
)
|
16
|
-
|
||||||||
Provision for income taxes
|
$
|
5,898
|
$
|
8,607
|
$
|
6,770
|
2018
|
2017
|
|||||||
Deferred tax assets
|
||||||||
Allowance for loan losses
|
$
|
2,884
|
$
|
2,630
|
||||
Purchase accounting adjustments
|
963
|
137
|
||||||
Net operating loss carryforward
|
333
|
360
|
||||||
Alternative minimum tax credit carryforward
|
125
|
321
|
||||||
Write-downs of other real estate owned
|
235
|
377
|
||||||
Taxable income on non-accrual loans
|
896
|
842
|
||||||
Accrued expenses
|
235
|
187
|
||||||
Unrealized loss on investment securities
|
1,024
|
551
|
||||||
Other
|
15
|
24
|
||||||
Total deferred tax assets
|
6,710
|
5,429
|
||||||
Deferred tax liabilities
|
||||||||
Amortization of intangibles
|
$
|
(3,063
|
)
|
$
|
(3,043
|
)
|
||
Depreciation
|
(1,106
|
)
|
(884
|
)
|
||||
Federal Home Loan Bank dividends
|
(224
|
)
|
(224
|
)
|
||||
Deferred loan fees
|
(499
|
)
|
(515
|
)
|
||||
Other
|
(105
|
)
|
(102
|
)
|
||||
Total deferred tax liabilities
|
(4,997
|
)
|
(4,768
|
)
|
||||
Valuation allowance on deferred tax assets
|
(172
|
)
|
(176
|
)
|
||||
Net deferred taxes
|
$
|
1,541
|
$
|
485
|
2018
|
2017
|
2016
|
||||||||||||||||||||||
U.S. federal income tax rate
|
$
|
5,474
|
21.0
|
%
|
$
|
8,200
|
35.0
|
%
|
$
|
6,630
|
35.0
|
%
|
||||||||||||
Changes from the statutory rate
|
||||||||||||||||||||||||
Change in deferred taxes related to decrease in future federal tax rate
|
-
|
-
|
145
|
0.6
|
-
|
-
|
||||||||||||||||||
State income taxes, net
|
518
|
2.0
|
503
|
2.1
|
355
|
1.9
|
||||||||||||||||||
Tax-exempt interest income
|
(143
|
)
|
(0.5
|
)
|
(239
|
)
|
(1.0
|
)
|
(254
|
)
|
(1.4
|
)
|
||||||||||||
Non-deductible interest expense related to carrying tax-exempt interest earning assets
|
11
|
0.0
|
13
|
0.1
|
15
|
0.1
|
||||||||||||||||||
Non-deductible stock compensation expense, net
|
12
|
0.0
|
(35
|
)
|
(0.2
|
)
|
26
|
0.1
|
||||||||||||||||
Tax credits, net
|
(71
|
)
|
(0.3
|
)
|
(42
|
)
|
(0.2
|
)
|
(42
|
)
|
(0.2
|
)
|
||||||||||||
Change in valuation allowance
|
4 |
0.0 |
16
|
0.1
|
-
|
-
|
||||||||||||||||||
Other
|
93
|
0.4
|
46
|
0.2
|
40
|
0.2
|
||||||||||||||||||
$
|
5,898
|
22.6
|
%
|
$
|
8,607
|
36.7
|
%
|
$
|
6,770
|
35.7
|
%
|
2018
|
2017
|
2016
|
||||||||||
Risk-free interest rate
|
2.69
|
%
|
2.02
|
%
|
1.41
|
%
|
||||||
Expected option life (yrs)
|
5.37
|
5.36
|
5.00
|
|||||||||
Expected stock price volatility
|
22.47
|
%
|
18.40
|
%
|
16.48
|
%
|
||||||
Dividend yield
|
3.17
|
%
|
3.16
|
%
|
4.03
|
%
|
||||||
Weighted average fair value of options granted during the year
|
$
|
2.49
|
$
|
2.32
|
$
|
1.06
|
----------2018---------- |
----------2017---------- |
----------2016---------- | ||||||||||||||||||||||
Options
|
Weighted
Average
Exercise
Price
|
Options
|
Weighted
Average
Exercise
Price
|
Options
|
Weighted
Average
Exercise
Price
|
|||||||||||||||||||
Outstanding at beginning of year
|
262,811
|
$
|
10.63
|
254,988
|
$
|
9.23
|
342,538
|
$
|
8.45
|
|||||||||||||||
Grants
|
67,875
|
15.12
|
69,375
|
15.21
|
69,988
|
10.84
|
||||||||||||||||||
Exercises
|
(28,151
|
)
|
10.12
|
(40,364
|
)
|
9.10
|
(121,100
|
)
|
7.30
|
|||||||||||||||
Forfeitures or expired
|
(4,152
|
)
|
13.91
|
(21,188
|
)
|
11.71
|
(36,438
|
)
|
11.42
|
|||||||||||||||
Outstanding at year-end
|
298,383
|
$
|
11.66
|
262,811
|
$
|
10.63
|
254,988
|
$
|
9.23
|
|||||||||||||||
Exercisable at year-end
|
172,577
|
$
|
9.55
|
145,134
|
$
|
8.53
|
141,363
|
$
|
8.02
|
|||||||||||||||
Weighted average remaining life
|
5.2
|
4.3
|
4.2
|
- - - - - - - - Outstanding - - - - - - - -
|
- - - - - - - - Currently Exercisable - - - - - - - -
|
||||||||||||||||||||||||||||
Range of Exercise Prices
|
Number
|
Weighted Average Exercise Price
|
Aggregate Intrinsic Value
|
Number
|
Weighted Average Remaining Contractual Life
|
Weighted Average Exercise Price
|
Aggregate Intrinsic Value
|
||||||||||||||||||||||
$4.00 to $6.00
|
35,383
|
$
|
5.26
|
$
|
342
|
35,383
|
2.7
|
$
|
5.26
|
$
|
342
|
||||||||||||||||||
$6.01 to $8.00
|
7,948
|
6.47
|
67
|
7,948
|
1.2
|
6.47
|
67
|
||||||||||||||||||||||
$8.01 to $10.00
|
20,138
|
8.28
|
133
|
20,138
|
4.2
|
8.28
|
133
|
||||||||||||||||||||||
$10.01 to $12.00
|
109,519
|
10.71
|
461
|
91,767
|
6.2
|
10.68
|
388
|
||||||||||||||||||||||
$12.01 to $16.00
|
125,395
|
15.16
|
-
|
17,341
|
8.2
|
15.21
|
-
|
||||||||||||||||||||||
Outstanding at Dec 31, 2018
|
298,383
|
11.66
|
$
|
1,003
|
172,577
|
5.2
|
9.55
|
$
|
930
|
2018
|
2017
|
2016
|
||||||||||
Basic earnings per share:
|
||||||||||||
Income available to common stockholders
|
$
|
20,168
|
$
|
14,819
|
$
|
12,174
|
||||||
Weighted average common shares outstanding
|
13,634,439
|
13,322,716
|
13,174,089
|
|||||||||
Earnings per share
|
$
|
1.48
|
$
|
1.11
|
$
|
0.92
|
||||||
Diluted earnings per share:
|
||||||||||||
Income available to common stockholders
|
$
|
20,168
|
$
|
14,819
|
$
|
12,174
|
||||||
Weighted average common shares outstanding
|
13,634,439
|
13,322,716
|
13,174,089
|
|||||||||
Add dilutive effects of potential additional common stock
|
102,179
|
97,398
|
80,310
|
|||||||||
Weighted average common and dilutive potential Common shares outstanding
|
13,736,618
|
13,420,114
|
13,254,399
|
|||||||||
Earnings per share assuming dilution
|
$
|
1.47
|
$
|
1.10
|
$
|
0.92
|
Fair Value Measurements at December 31, 2018 Using
|
||||||||||||||||||||
Carrying
Amount
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
Financial assets
|
||||||||||||||||||||
Cash and due from banks
|
$
|
62,903
|
$
|
62,903
|
$
|
-
|
$
|
-
|
$
|
62,903
|
||||||||||
Time deposits with other banks
|
1,094
|
-
|
1,085
|
-
|
1,085
|
|||||||||||||||
Federal funds sold
|
17,872
|
17,872
|
-
|
-
|
17,872
|
|||||||||||||||
Securities available for sale
|
365,731
|
-
|
365,231
|
500
|
365,731
|
|||||||||||||||
Loans, net
|
1,135,563
|
-
|
-
|
1,121,517
|
1,121,517
|
|||||||||||||||
Federal Home Loan Bank stock
|
3,628
|
n/a
|
n/a
|
n/a
|
n/a
|
|||||||||||||||
Interest receivable
|
4,295
|
-
|
1,032
|
3,263
|
4,295
|
|||||||||||||||
Financial liabilities
|
||||||||||||||||||||
Deposits
|
$
|
(1,430,127
|
)
|
$
|
(1,039,430
|
)
|
$
|
(384,496
|
)
|
$
|
-
|
$
|
(1,423,926
|
)
|
||||||
Securities sold under agreements to repurchase
|
(22,062
|
)
|
-
|
(22,062
|
)
|
-
|
(22,062
|
)
|
||||||||||||
FHLB advances
|
(8,819
|
)
|
-
|
(8,688
|
)
|
-
|
(8,688
|
)
|
||||||||||||
Other borrowed funds
|
(2,500
|
)
|
-
|
(2,478
|
)
|
-
|
(2,478
|
)
|
||||||||||||
Subordinated debt
|
(5,406
|
)
|
-
|
(5,509
|
)
|
-
|
(5,509
|
)
|
||||||||||||
Interest payable
|
(733
|
)
|
(22
|
)
|
(711
|
)
|
-
|
(733
|
)
|
Fair Value Measurements at December 31, 2017 Using
|
||||||||||||||||||||
Carrying
Amount
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||||||
Financial assets
|
||||||||||||||||||||
Cash and due from banks
|
$
|
78,005
|
$
|
78,005
|
$
|
-
|
$
|
-
|
$
|
78,005
|
||||||||||
Time deposits with other banks
|
2,582
|
-
|
2,581
|
-
|
2,581
|
|||||||||||||||
Federal funds sold
|
4,658
|
4,658
|
-
|
-
|
4,658
|
|||||||||||||||
Securities available for sale
|
278,466
|
-
|
278,466
|
-
|
278,466
|
|||||||||||||||
Loans, net
|
1,036,948
|
-
|
-
|
1,016,723
|
1,016,723
|
|||||||||||||||
Federal Home Loan Bank stock
|
3,185
|
n/a
|
n/a
|
n/a
|
n/a
|
|||||||||||||||
Interest receivable
|
4,043
|
-
|
700
|
3,343
|
4,043
|
|||||||||||||||
Financial liabilities
|
||||||||||||||||||||
Deposits
|
$
|
(1,272,675
|
)
|
$
|
(929,202
|
)
|
$
|
(338,291
|
)
|
$
|
-
|
$
|
(1,267,493
|
)
|
||||||
Securities sold under agreements to repurchase
|
(23,310
|
)
|
-
|
(23,310
|
)
|
-
|
(23,310
|
)
|
||||||||||||
Other borrowed funds
|
(5,000
|
)
|
-
|
(4,955
|
)
|
-
|
(4,955
|
)
|
||||||||||||
Subordinated debt
|
(5,376
|
)
|
-
|
(5,439
|
)
|
-
|
(5,439
|
)
|
||||||||||||
Interest payable
|
(393
|
)
|
(7
|
)
|
(386
|
)
|
-
|
(393
|
)
|
Fair Value Measurements at
December 31, 2018 Using: |
||||||||||||||||
Carrying Value
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
|||||||||||||
Securities available for sale
|
||||||||||||||||
Mortgage-backed securities
|
||||||||||||||||
U. S. agency MBS - residential
|
$
|
255,242
|
$
|
-
|
$
|
255,242
|
$
|
-
|
||||||||
U. S. agency CMO’s
|
68,543
|
-
|
68,543
|
-
|
||||||||||||
Total mortgage-backed securities of government sponsored agencies
|
323,785
|
-
|
323,785
|
-
|
||||||||||||
U. S. government sponsored agency securities
|
24,170
|
-
|
24,170
|
-
|
||||||||||||
Obligations of states and political subdivisions
|
14,327
|
-
|
14,327
|
-
|
||||||||||||
Other securities
|
3,449
|
-
|
2,949
|
500
|
||||||||||||
Total securities available for sale
|
$
|
365,731
|
$
|
-
|
$
|
365,231
|
$
|
500
|
Fair Value Measurements at
December 31, 2017 Using:
|
||||||||||||||||
Carrying Value
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs
(Level 2) |
Significant Unobservable Inputs
(Level 3)
|
|||||||||||||
Securities available for sale
|
||||||||||||||||
Mortgage-backed securities
|
||||||||||||||||
U. S. agency MBS - residential
|
$
|
196,590
|
$
|
-
|
$
|
196,590
|
$
|
-
|
||||||||
U. S. agency CMO’s
|
51,108
|
-
|
51,108
|
-
|
||||||||||||
Total mortgage-backed securities of government sponsored agencies
|
247,698
|
-
|
247,698
|
-
|
||||||||||||
U. S. government sponsored agency securities
|
19,134
|
-
|
19,134
|
-
|
||||||||||||
Obligations of states and political subdivisions
|
11,634
|
-
|
11,634
|
-
|
||||||||||||
Total securities available for sale
|
$
|
278,466
|
$
|
-
|
$
|
278,466
|
$
|
-
|
Securities Available-for-sale
|
||||
Year Ended
December 31, 2018
|
||||
Balance of recurring Level 3 assets at beginning of period
|
$
|
-
|
||
Total gains or losses (realized/unrealized):
|
||||
Included in earnings – realized
|
-
|
|||
Included in earnings – unrealized
|
-
|
|||
Included in other comprehensive income
|
-
|
|||
Purchases, sales, issuances and settlements, net
|
500
|
|||
Transfers in and/or out of Level 3
|
-
|
|||
Balance of recurring Level 3 assets at period-end
|
$
|
500
|
Fair Value Measurements at
December 31, 2018 Using
|
||||||||||||||||
Dec 31, 2018
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
|||||||||||||
Assets:
|
||||||||||||||||
Impaired loans:
|
||||||||||||||||
Multifamily real estate
|
$
|
2,514
|
$
|
-
|
$
|
-
|
$
|
2,514
|
||||||||
Commercial real estate
|
||||||||||||||||
Owner occupied
|
1,786
|
-
|
-
|
1,786
|
||||||||||||
Non-owner occupied
|
2,514
|
-
|
-
|
2,514
|
||||||||||||
Commercial and industrial
|
144
|
-
|
-
|
144
|
||||||||||||
Construction and land
|
423
|
-
|
-
|
423
|
||||||||||||
Total impaired loans
|
$
|
7,381
|
$
|
-
|
$
|
-
|
$
|
7,381
|
||||||||
Other real estate owned:
|
||||||||||||||||
Residential real estate
|
$
|
984
|
$
|
-
|
$
|
-
|
$
|
984
|
||||||||
Multifamily real estate
|
10,307
|
-
|
-
|
10,307
|
||||||||||||
Commercial real estate
|
||||||||||||||||
Owner occupied
|
125
|
-
|
-
|
125
|
||||||||||||
Non-owner occupied
|
200
|
-
|
-
|
200
|
||||||||||||
Construction and land
|
150
|
-
|
-
|
150
|
||||||||||||
Total OREO
|
$
|
11,766
|
$
|
-
|
$
|
-
|
$
|
11,766
|
December 31,
2018
|
Valuation Techniques
|
Unobservable Inputs
|
Range (Weighted Avg)
|
||||||
Impaired loans:
|
|||||||||
Multifamily real estate
|
$
|
2,514
|
sales comparison
|
adjustment for estimated realizable value
|
45.3%-45.3% (45.3%)
|
||||
Commercial real estate
|
|||||||||
Owner occupied
|
1,786
|
sales comparison
|
adjustment for estimated realizable value
|
31.5%-50.6% (35.5%)
|
|||||
Non-owner occupied
|
2,514
|
income approach
|
adjustment for differences in net operating income expectations
|
16.1%-67.2% (54.1%)
|
|||||
Commercial and industrial
|
144
|
sales comparison
|
adjustment for estimated realizable value
|
0.0%-0.0% (0.0%)
|
|||||
Construction and land
|
423
|
sales comparison
|
adjustment for estimated realizable value
|
53.2%-83.6% (54.5%)
|
|||||
Total impaired loans
|
$
|
7,381
|
|||||||
Other real estate owned:
|
|||||||||
Residential real estate
|
$
|
984
|
sales comparison
|
adjustment for estimated realizable value
|
19.2%-59.8% (21.9%)
|
||||
Multifamily real estate
|
10,307
|
income approach
|
adjustment for differences in net operating income expectations
|
20.0%-20.0% (20.0%)
|
|||||
Commercial real estate
|
|||||||||
Owner occupied
|
125
|
sales comparison
|
adjustment for estimated realizable value
|
42.4%-42.4% (42.4%)
|
|||||
Non-owner occupied
|
200
|
sales comparison
|
adjustment for estimated realizable value
|
57.9%-57.9% (57.9%)
|
|||||
Construction and land
|
150
|
sales comparison
|
adjustment for estimated realizable value
|
50.3%-50.3% (50.3%)
|
|||||
Total OREO
|
$
|
11,766
|
Fair Value Measurements at
December 31, 2017 Using
|
||||||||||||||||
Dec 31, 2017
|
Quoted Prices in Active Markets for Identical Assets
(Level 1) |
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3) |
|||||||||||||
Assets:
|
||||||||||||||||
Impaired loans:
|
||||||||||||||||
Multifamily real estate
|
$
|
1,910
|
$
|
-
|
$
|
-
|
$
|
1,910
|
||||||||
Commercial real estate
|
||||||||||||||||
Owner occupied
|
568
|
-
|
-
|
568
|
||||||||||||
Non-owner occupied
|
1,984
|
-
|
-
|
1,984
|
||||||||||||
Commercial and industrial
|
111
|
-
|
-
|
111
|
||||||||||||
Construction and land
|
3,309
|
-
|
-
|
3,309
|
||||||||||||
Total impaired loans
|
$
|
7,882
|
$
|
-
|
$
|
-
|
$
|
7,882
|
||||||||
Other real estate owned:
|
||||||||||||||||
Residential real estate
|
$
|
352
|
$
|
-
|
$
|
-
|
$
|
352
|
||||||||
Commercial real estate
|
||||||||||||||||
Owner occupied
|
175
|
-
|
-
|
175
|
||||||||||||
Non-owner occupied
|
200
|
-
|
-
|
200
|
||||||||||||
Construction and land
|
1,914
|
-
|
-
|
1,914
|
||||||||||||
Total OREO
|
$
|
2,641
|
$
|
-
|
$
|
-
|
$
|
2,641
|
December 31, 2017
|
Valuation Techniques
|
Unobservable Inputs
|
Range (Weighted Avg)
|
||||||
Impaired loans:
|
|||||||||
Multifamily real estate
|
$
|
1,910
|
sales comparison
|
adjustment for estimated realizable value
|
46.0%-46.7% (46.4%)
|
||||
Commercial real estate
|
|||||||||
Owner occupied
|
568
|
sales comparison
|
adjustment for estimated realizable value
|
23.1%-23.1% (23.1%)
|
|||||
Non-owner occupied
|
1,984
|
income approach
|
adjustment for differences in net operating income expectations
|
67.4%-67.4% (67.4%)
|
|||||
Commercial and industrial
|
111
|
sales comparison
|
adjustment for estimated realizable value
|
8.0%-71.1% (64.2%)
|
|||||
Construction and land
|
3,309
|
sales comparison
|
adjustment for percentage of completion of construction
|
27.7%-27.7% (27.7%)
|
|||||
Total impaired loans
|
$
|
7,882
|
|||||||
Other real estate owned:
|
|||||||||
Residential real estate
|
$
|
352
|
sales comparison
|
adjustment for estimated realizable value
|
8.8%-50.2% (20.0%)
|
||||
Commercial real estate
|
|||||||||
Owner occupied
|
175
|
sales comparison
|
adjustment for estimated realizable value
|
21.8%-21.8% (21.8%)
|
|||||
Non-owner occupied
|
200
|
sales comparison
|
adjustment for estimated realizable value
|
58.9%-58.9% (58.9%)
|
|||||
Construction and land
|
1,914
|
sales comparison
|
adjustment for estimated realizable value
|
25.2%-69.0% (27.8%)
|
|||||
Total OREO
|
$
|
2,641
|
2018
|
2017
|
|||||||
Standby letters of credit
|
$
|
4,424
|
$
|
3,936
|
||||
Commitments to extend credit
|
||||||||
Fixed
|
$
|
21,993
|
$
|
22,100
|
||||
Variable
|
118,328
|
83,429
|
To Be Well Capitalized
|
||||||||||||||||||||||||
For Capital
|
Under Prompt Corrective
|
|||||||||||||||||||||||
Actual
|
Adequacy Purposes (1)
|
Action Provisions
|
||||||||||||||||||||||
2018
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
Total Capital (to risk-weighted assets):
|
||||||||||||||||||||||||
Consolidated (2)
|
$
|
190,770
|
15.9
|
%
|
$
|
96,110
|
8
|
%
|
$
|
120,138
|
10
|
%
|
||||||||||||
Premier Bank, Inc.
|
141,302
|
15.4
|
73,320
|
8
|
91,650
|
10
|
||||||||||||||||||
Citizens Deposit Bank
|
42,284
|
14.8
|
22,852
|
8
|
28,565
|
10
|
||||||||||||||||||
Tier I Capital (to risk-weighted assets):
|
||||||||||||||||||||||||
Consolidated (2)
|
$
|
177,032
|
14.7
|
%
|
$
|
72,083
|
6
|
%
|
$
|
96,110
|
8
|
%
|
||||||||||||
Premier Bank, Inc.
|
130,428
|
14.2
|
54,990
|
6
|
73,320
|
8
|
||||||||||||||||||
Citizens Deposit Bank
|
39,420
|
13.8
|
17,139
|
6
|
22,852
|
8
|
||||||||||||||||||
Common Equity Tier I Capital (to risk-weighted assets):
|
||||||||||||||||||||||||
Consolidated (2)
|
$
|
171,032
|
14.2
|
%
|
$
|
54,062
|
4.5
|
%
|
$
|
78,090
|
6.5
|
%
|
||||||||||||
Premier Bank, Inc.
|
130,428
|
14.2
|
41,242
|
4.5
|
59,572
|
6.5
|
||||||||||||||||||
Citizens Deposit Bank
|
39,420
|
13.8
|
12,854
|
4.5
|
18,567
|
6.5
|
||||||||||||||||||
Tier I Capital (to average assets):
|
||||||||||||||||||||||||
Consolidated (2)
|
$
|
177,032
|
10.7
|
%
|
$
|
66,040
|
4
|
%
|
$
|
82,550
|
5
|
%
|
||||||||||||
Premier Bank, Inc.
|
130,428
|
10.8
|
48,368
|
4
|
60,460
|
5
|
||||||||||||||||||
Citizens Deposit Bank
|
39,420
|
9.0
|
17,571
|
4
|
21,964
|
5
|
||||||||||||||||||
(1) The ratios for capital adequacy purposes do not include the additional
capital conservation buffer.
(2) The consolidated company is not subject to Prompt Corrective Action
Provisions.
|
To Be Well Capitalized
|
||||||||||||||||||||||||
For Capital
|
Under Prompt Corrective
|
|||||||||||||||||||||||
Actual
|
Adequacy Purposes (1)
|
Action Provisions
|
||||||||||||||||||||||
2017
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
Total Capital (to risk-weighted assets):
|
||||||||||||||||||||||||
Consolidated (2)
|
$
|
168,072
|
15.6
|
%
|
$
|
86,401
|
8
|
%
|
$
|
108,001
|
10
|
%
|
||||||||||||
Premier Bank, Inc.
|
123,444
|
15.4
|
64,300
|
8
|
80,375
|
10
|
||||||||||||||||||
Citizens Deposit Bank
|
40,839
|
14.8
|
22,078
|
8
|
27,598
|
10
|
||||||||||||||||||
Tier I Capital (to risk-weighted assets):
|
||||||||||||||||||||||||
Consolidated (2)
|
$
|
155,968
|
14.4
|
%
|
$
|
64,800
|
6
|
%
|
$
|
86,401
|
8
|
%
|
||||||||||||
Premier Bank, Inc.
|
113,938
|
14.2
|
48,225
|
6
|
64,300
|
8
|
||||||||||||||||||
Citizens Deposit Bank
|
38,241
|
13.9
|
16,559
|
6
|
22,078
|
8
|
||||||||||||||||||
Common Equity Tier I Capital (to risk-weighted assets):
|
||||||||||||||||||||||||
Consolidated (2)
|
$
|
150,069
|
13.9
|
%
|
$
|
48,600
|
4.5
|
%
|
$
|
70,201
|
6.5
|
%
|
||||||||||||
Premier Bank, Inc.
|
113,938
|
14.2
|
36,169
|
4.5
|
52,244
|
6.5
|
||||||||||||||||||
Citizens Deposit Bank
|
38,241
|
13.9
|
12,419
|
4.5
|
17,939
|
6.5
|
||||||||||||||||||
Tier I Capital (to average assets):
|
||||||||||||||||||||||||
Consolidated (2)
|
$
|
155,968
|
10.7
|
%
|
$
|
58,484
|
4
|
%
|
$
|
73,106
|
5
|
%
|
||||||||||||
Premier Bank, Inc.
|
113,938
|
11.0
|
41,618
|
4
|
52,022
|
5
|
||||||||||||||||||
Citizens Deposit Bank
|
38,241
|
9.0
|
16,947
|
4
|
21,183
|
5
|
||||||||||||||||||
(1) The ratios for capital adequacy purposes do not include the additional
capital conservation buffer.
(2) The consolidated company is not subject to Prompt Corrective Action
Provisions.
|
Condensed Balance Sheets
|
||||||||
December 31
|
||||||||
2018
|
2017
|
|||||||
ASSETS
|
||||||||
Cash
|
$
|
8,759
|
$
|
7,894
|
||||
Investment in subsidiaries
|
215,888
|
186,059
|
||||||
Premises and equipment
|
271
|
284
|
||||||
Other assets
|
730
|
550
|
||||||
Total assets
|
$
|
225,648
|
$
|
194,787
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Other liabilities
|
$
|
1,013
|
$
|
1,056
|
||||
Other borrowed funds
|
2,500
|
5,000
|
||||||
Subordinated debt
|
5,406
|
5,376
|
||||||
Total liabilities
|
8,919
|
11,432
|
||||||
Stockholders’ equity
|
||||||||
Common stock
|
133,248
|
110,445
|
||||||
Retained earnings
|
87,333
|
74,983
|
||||||
Accumulated other comprehensive income (loss)
|
(3,852
|
)
|
(2,073
|
)
|
||||
Total stockholders’ equity
|
216,729
|
183,355
|
||||||
Total liabilities and stockholders’ equity
|
$
|
225,648
|
$
|
194,787
|
Condensed Statement of Operations
|
||||||||||||
Years Ended December 31
|
||||||||||||
2018
|
2017
|
2016
|
||||||||||
Income
|
||||||||||||
Dividends from subsidiaries
|
$
|
18,740
|
$
|
12,565
|
$
|
10,840
|
||||||
Interest and dividend income
|
7
|
12
|
9
|
|||||||||
Other income
|
2,163
|
2,126
|
1,766
|
|||||||||
Total income
|
20,910
|
14,703
|
12,615
|
|||||||||
Expenses
|
||||||||||||
Interest expense on other borrowings
|
156
|
285
|
401
|
|||||||||
Interest expense on subordinated debt
|
352
|
295
|
256
|
|||||||||
Salaries and employee benefits
|
3,252
|
3,399
|
2,744
|
|||||||||
Occupancy and equipment expenses
|
394
|
299
|
302
|
|||||||||
Professional fees
|
689
|
303
|
307
|
|||||||||
Other expenses
|
659
|
387
|
661
|
|||||||||
Total expenses
|
5,502
|
4,968
|
4,671
|
|||||||||
Income before income taxes and equity in undistributed income of subsidiaries
|
15,408
|
9,735
|
7,944
|
|||||||||
Income tax (benefit)
|
(723
|
)
|
(1,012
|
)
|
(988
|
)
|
||||||
Income before equity in undistributed income of subsidiaries
|
16,131
|
10,747
|
8,932
|
|||||||||
Equity in undistributed income of subsidiaries
|
4,037
|
4,072
|
3,242
|
|||||||||
Net income
|
$
|
20,168
|
$
|
14,819
|
$
|
12,174
|
Condensed Statement of Cash Flows
|
||||||||||||
Years Ended December 31
|
||||||||||||
2018
|
2017
|
2016
|
||||||||||
Cash flows from operating activities
|
||||||||||||
Net income
|
$
|
20,168
|
$
|
14,819
|
$
|
12,174
|
||||||
Adjustments to reconcile net income to net cash from operating activities
|
||||||||||||
Depreciation
|
93
|
89
|
94
|
|||||||||
Amortization
|
30
|
33
|
35
|
|||||||||
Stock compensation expense
|
252
|
217
|
178
|
|||||||||
Equity in undistributed earnings of subsidiaries
|
(4,037
|
)
|
(4,072
|
)
|
(3,242
|
)
|
||||||
Change in other assets
|
(181
|
)
|
(123
|
)
|
(174
|
)
|
||||||
Change in other liabilities
|
(43
|
)
|
243
|
(58
|
)
|
|||||||
Net cash from operating activities
|
16,282
|
11,206
|
9,007
|
|||||||||
Cash flows from investing activities
|
||||||||||||
Investments in nonbank subsidiaries
|
-
|
(250
|
)
|
-
|
||||||||
Acquisition of subsidiary, net of cash received
|
(5,212
|
)
|
-
|
25
|
||||||||
Purchases of fixed assets, net of proceeds from asset sales
|
(80
|
)
|
(80
|
)
|
(159
|
)
|
||||||
Net cash from investing activities
|
(5,292
|
)
|
(330
|
)
|
(134
|
)
|
||||||
Cash flows from financing activities
|
||||||||||||
Cash dividends paid to shareholders
|
(7,805
|
)
|
(6,398
|
)
|
(5,933
|
)
|
||||||
Cash in lieu of fractional shares
|
(13
|
)
|
-
|
(16
|
)
|
|||||||
Proceeds from stock option exercises
|
193
|
317
|
751
|
|||||||||
Payments on other borrowed funds
|
(2,500
|
)
|
(3,600
|
)
|
(2,400
|
)
|
||||||
Net cash from financing activities
|
(10,125
|
)
|
(9,681
|
)
|
(7,598
|
)
|
||||||
Net change in cash and cash equivalents
|
865
|
1,195
|
1,275
|
|||||||||
Cash and cash equivalents at beginning of year
|
7,894
|
6,699
|
5,424
|
|||||||||
Cash and cash equivalents at end of year
|
$
|
8,759
|
$
|
7,894
|
$
|
6,699
|
Interest
Income
|
Net Interest
Income
|
Net
Income
|
Earnings Per Share
|
|||||||||||||||||
Basic
|
Diluted
|
|||||||||||||||||||
2018
|
||||||||||||||||||||
First Quarter
|
$
|
15,799
|
$
|
14,635
|
$
|
5,133
|
$
|
0.38
|
$
|
0.38
|
||||||||||
Second Quarter
|
15,753
|
14,419
|
4,375
|
0.33
|
0.32
|
|||||||||||||||
Third Quarter
|
16,001
|
14,509
|
5,021
|
0.38
|
0.37
|
|||||||||||||||
Fourth Quarter
|
18,268
|
16,191
|
5,639
|
0.39
|
0.39
|
|||||||||||||||
2017
|
||||||||||||||||||||
First Quarter
|
$
|
15,109
|
$
|
13,996
|
$
|
3,664
|
$
|
0.28
|
$
|
0.27
|
||||||||||
Second Quarter
|
16,373
|
15,262
|
3,919
|
0.29
|
0.29
|
|||||||||||||||
Third Quarter
|
15,134
|
14,031
|
3,467
|
0.26
|
0.26
|
|||||||||||||||
Fourth Quarter
|
15,374
|
14,199
|
3,769
|
0.28
|
0.28
|
A.
|
Disclosure
Controls & Procedures
|
B.
|
Management’s
Report on Internal Control Over Financial Reporting
|
Exhibit
Number
|
Description of Document
|
|
2.1
|
||
2.2
|
||
2.3
|
||
2.4
|
||
2.5
|
||
2.6
|
||
2.7
|
Exhibit
Number
|
Description of Document
|
|
2.8
|
||
2.9
|
||
3.1(a)
|
Form of Articles of Incorporation of registrant (included as Exhibit 3.1 to registrant’s Registration Statement on Form S-1, Registration No. 333-1702,
filed on February 28, 1996 with the Commission and incorporated herein by reference).
|
|
3.1(b)
|
Form of Articles of Amendment to Articles of Incorporation effective March 15, 1996 re: amendment to Article IV (included as Exhibit 3.2 to registrant’s
Amendment No. 1 to Registration Statement on Form S-1, Registration No. 333-1702, filed on March 25, 1996 with the Commission and incorporated herein by reference.
|
|
3.1(c)
|
||
3.1(d)
|
||
3.1(e)
|
||
3.1(f)
|
||
3.1(g)
|
||
3.1(h)
|
Exhibit
Number
|
Description of Document
|
|
3.2
|
||
4.1
|
||
4.2
|
||
***10.1 | ||
***10.2 | ||
10.3
|
||
10.4
|
||
10.5
|
||
10.6
|
||
10.7
|
||
10.8
|
||
***10.9 |
Exhibit
Number
|
Description of Document
|
|
10.10
|
||
10.11
|
||
10.12
|
||
10.13
|
||
10.14
|
||
10.15
|
||
***10.16 | ||
10.17
|
||
10.18
|
||
10.19
|
||
10.20
|
||
10.21
|
||
10.22
|
||
10.23
|
Exhibit
Number
|
Description of Document
|
|
10.24
|
||
10.25
|
||
10.26
|
||
10.27
|
||
14.1
|
||
14.2
|
||
21
|
||
23
|
||
31.1
|
||
31.2
|
||
32
|
||
*** Denotes executive compensation plans and arrangements.
|
PREMIER FINANCIAL BANCORP, INC.
|
|
By: /s/ Robert W. Walker, President
|
|
Robert W. Walker, President
|
|
Date: March 18, 2019
|
|
/s/ Robert W. Walker
|
Principal Executive and Director
|
March 18, 2019
|
Robert W. Walker
|
||
/s/ Brien M. Chase
|
Principal Financial and Accounting
|
March 18, 2019
|
Brien M. Chase
|
Officer
|
|
/s/ Toney K. Adkins
|
Director
|
March 12, 2019
|
Toney K. Adkins
|
||
/s/ Harry M. Hatfield
|
Director
|
March 08, 2019
|
Harry M. Hatfield
|
||
/s/ Lloyd G. Jackson II
|
Director
|
March 08, 2019
|
Lloyd G. Jackson II
|
||
/s/ Philip E. Cline
|
Director
|
March 12, 2019
|
Philip E. Cline
|
||
/s/ Keith F. Molihan
|
Director
|
March 12, 2019
|
Keith F. Molihan
|
||
/s/ Marshall T. Reynolds
|
Chairman of the Board
|
March 12, 2019
|
Marshall T. Reynolds
|
||
/s/ Neal Scaggs
|
Director
|
March 11, 2019
|
Neal Scaggs
|
||
/s/ Thomas W. Wright
|
Director
|
March 11, 2019
|
Thomas W. Wright
|
||