QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Large accelerated filer
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☐
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☒
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Non-accelerated filer
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☐
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Smaller reporting company
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Emerging growth company
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Page
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PART I.
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3
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Item 1.
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3
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3
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4
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6
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7
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8
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Item 2.
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27
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Item 3.
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48
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Item 4.
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48
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PART II.
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49
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Item 1.
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49
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Item 1A.
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49
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Item 2.
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49
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Item 3.
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49
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Item 4.
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49
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Item 5.
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49
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Item 6.
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50
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51
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Item 1. |
Consolidated Financial Statements
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March 31,
2022
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December 31,
2021
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|||||||
(Unaudited)
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||||||||
ASSETS
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||||||||
Cash and due from banks
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$
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$
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||||
Interest-bearing deposits in banks
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||||||
Cash and cash equivalents
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Securities available for sale
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Loans held for sale
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Loans held for investment
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Allowance for loan losses
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(
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)
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(
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)
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Loans held for investment, net
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||||||||
Accrued interest receivable
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||||||
Premises and equipment, net
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Bank-owned life insurance
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Goodwill
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||||||
Intangible assets, net
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Mortgage servicing rights
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Deferred tax asset, net
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||||||
Other assets
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||||||
Total assets
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$
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$
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||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
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||||||||
Deposits:
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||||||||
Noninterest-bearing
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$
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$
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||||
Interest-bearing
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||||||
Total deposits
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||||||
Accrued expenses and other liabilities
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||||||
Subordinated debt securities
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||||||
Junior subordinated deferrable interest debentures
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||||||
Total liabilities
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||||||
Stockholders’ equity:
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||||||||
Common stock, $
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||||||
Additional paid-in capital
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||||||
Retained earnings
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||||||
Accumulated other comprehensive income (loss)
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(
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)
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|||||
Total stockholders’ equity
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||||||
Total liabilities and stockholders’ equity
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$
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$
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Three Months Ended
March 31,
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||||||||
2022
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2021
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|||||||
Interest income:
|
||||||||
Loans, including fees
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$
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$
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||||
Securities:
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||||||||
Taxable
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||||||
Non-taxable
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Federal funds sold and interest-bearing deposits in banks
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Total interest income
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Interest expense:
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||||||||
Deposits
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||||||
Notes payable & other borrowings
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||||||
Subordinated debt securities
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||||||
Junior subordinated deferrable interest debentures
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||||||
Total interest expense
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||||||
Net interest income
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||||||
Provision for loan losses
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(
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)
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|||||
Net interest income, after provision for loan losses
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||||||
Noninterest income:
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||||||||
Service charges on deposit accounts
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||||||
Income from insurance activities
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||||||
Net gain on sales of loans
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Bank card services and interchange fees
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Other mortgage banking income
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Investment commissions
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Fiduciary fees
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Other
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||||||
Total noninterest income
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||||||
Noninterest expense:
|
||||||||
Salaries and employee benefits
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||||||
Occupancy and equipment, net
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||||||
Professional services
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||||||
Marketing and development
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IT and data services
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Bank card expenses
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Appraisal expenses
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Other
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Total noninterest expense
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||||||
Income before income taxes
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||||||
Income tax expense
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||||||
Net income
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$
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$
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Three Months Ended
March 31,
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||||||||
2022
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2021
|
|||||||
Earnings per share:
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||||||||
Basic
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$
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$
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||||
Diluted
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$
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$
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||||
Net income
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$
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$
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||||
Other comprehensive loss:
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||||||||
Unrealized losses on securities available for sale
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(
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)
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(
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)
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||||
Less: Change in fair value on hedged state and municipal securities
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||||||
Tax effect
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||||||
Other comprehensive loss
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(
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)
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(
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)
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||||
Comprehensive income (loss)
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$
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(
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)
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$
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Common Stock
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Additional
Paid-in
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Retained
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Accumulated
Other
Comprehensive
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|||||||||||||||||||||
Shares
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Amount
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Capital
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Earnings
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Income (Loss)
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Total
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|||||||||||||||||||
Three
Months Ended March 31,
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||||||||||||||||||||||||
Balance at January 1, 2021
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$ | $ | $ | $ | $ | |||||||||||||||||||
Net income
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—
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|||||||||||||||||||||||
Cash dividends:
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||||||||||||||||||||||||
Common - $
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—
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( |
) | ( |
) | |||||||||||||||||||
Other comprehensive loss
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—
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( |
) | ( |
) | |||||||||||||||||||
Exercise of employee stock options and vesting of restricted stock units, net of
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( |
) | ( |
) | ||||||||||||||||||||
Repurchases of common stock | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Stock based compensation
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—
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|||||||||||||||||||||||
Balance at March 31, 2021
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$ | $ | $ | $ | $ | |||||||||||||||||||
Balance at January 1, 2022
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$ | $ | $ | $ | $ | |||||||||||||||||||
Net income
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—
|
|||||||||||||||||||||||
Cash dividends:
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||||||||||||||||||||||||
Common - $
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—
|
( |
) | ( |
) | |||||||||||||||||||
Other comprehensive loss
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—
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( |
) | ( |
) | |||||||||||||||||||
Exercise of employee stock options and vesting of restricted stock units, net of
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( |
) | ( |
) | ||||||||||||||||||||
Repurchases of common stock | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Stock based compensation
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—
|
|||||||||||||||||||||||
Balance at March 31, 2022
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$ | $ | $ | $ | ( |
) | $ |
Three Months Ended
March 31,
|
||||||||
2022
|
2021
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
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$
|
|
$
|
|
||||
Adjustments to reconcile net income to net cash from operating activities:
|
||||||||
Provision for loan losses
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(
|
)
|
|
|||||
Depreciation and amortization
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|
||||||
Accretion and amortization
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|
||||||
Other gains, net
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(
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)
|
|||||
Net gain on sales of loans
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(
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)
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(
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)
|
||||
Proceeds from sales of loans held for sale
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|
||||||
Loans originated for sale
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(
|
)
|
(
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)
|
||||
Deferred income tax expense (benefit)
|
||||||||
Earnings on bank-owned life insurance
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(
|
)
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(
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)
|
||||
Stock-based compensation
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||||||
Change in valuation of mortgage servicing rights
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(
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)
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(
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)
|
||||
Net change in:
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||||||||
Accrued interest receivable and other assets
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(
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)
|
|||||
Accrued expenses and other liabilities
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||||||
Net cash provided by operating activities
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|
||||||
Cash flows from investing activities:
|
||||||||
Activity in securities available for sale:
|
||||||||
Purchases
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(
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)
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(
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)
|
||||
Maturities, prepayments, and calls
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|
||||||
Loan originations and principal collections, net
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(
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)
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(
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)
|
||||
Purchases of premises and equipment
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(
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)
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(
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)
|
||||
Proceeds from sales of premises and equipment
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|
||||||
Proceeds from sales of foreclosed assets
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|
||||||
Net cash used in investing activities
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(
|
)
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(
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)
|
||||
Cash flows from financing activities:
|
||||||||
Net change in deposits
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|
|
||||||
Net change in short-term borrowings
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(
|
)
|
|||||
Payments to tax authorities for stock-based compensation
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(
|
)
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(
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)
|
||||
Payments made on notes payable and other borrowings
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(
|
)
|
|||||
Cash dividends on common stock
|
(
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)
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(
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)
|
||||
Payments to repurchase common stock
|
(
|
)
|
(
|
)
|
||||
Net cash provided by financing activities
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|
|
||||||
Net change in cash and cash equivalents
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$
|
|
$
|
|
||||
Beginning cash and cash equivalents
|
|
|
||||||
Ending cash and cash equivalents
|
$
|
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$
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|
||||
Supplemental disclosures of cash flow information:
|
||||||||
Interest paid on deposits and borrowed funds
|
$
|
|
$
|
|
||||
Income taxes paid
|
||||||||
Supplemental schedule of noncash activities:
|
||||||||
Loans transferred to foreclosed assets
|
$
|
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$
|
|
||||
Additions to mortgage servicing rights
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|
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Wholly-Owned, Consolidated Subsidiaries:
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Bank subsidiary
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Non-bank subsidiary
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Non-bank subsidiary
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Non-bank subsidiary
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Non-bank subsidiary
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Non-bank subsidiary
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Wholly-Owned, Equity Method Subsidiaries:
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Non-bank subsidiaries
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Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
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Fair
Value
|
|||||||||||||
March 31, 2022
|
||||||||||||||||
Available for sale:
|
||||||||||||||||
U.S. government and agencies
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
State and municipal
|
|
|
(
|
)
|
|
|||||||||||
Mortgage-backed securities
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|
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(
|
)
|
|
|||||||||||
Collateralized mortgage obligations
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|
||||||||||||
Asset-backed and other amortizing securities
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|
(
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)
|
|
|||||||||||
Other securities
|
|
|
(
|
)
|
|
|||||||||||
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
|||||||||||||
December 31, 2021
|
||||||||||||||||
Available for sale:
|
||||||||||||||||
U.S. government and agencies
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
State and municipal
|
|
|
(
|
)
|
|
|||||||||||
Mortgage-backed securities
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|
(
|
)
|
|
|||||||||||
Collateralized mortgage obligations
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(
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)
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|
|||||||||||
Asset-backed and other amortizing securities
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|
(
|
)
|
|
|||||||||||
Other securities
|
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|
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|
||||||||||||
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
Available for Sale
|
||||||||
Amortized
Cost
|
Fair
Value
|
|||||||
Within 1 year
|
$
|
|
$
|
|
||||
After 1 year through 5 years
|
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|
||||||
After 5 years through 10 years
|
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|
||||||
After 10 years
|
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|
||||||
Other
|
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|
||||||
$
|
|
$
|
|
Less than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
|||||||||||||||||||
March 31, 2022
|
||||||||||||||||||||||||
U.S. government and agencies
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
State and municipal
|
|
|
|
|
|
|
||||||||||||||||||
Mortgage-backed securities
|
|
|
|
|
|
|
||||||||||||||||||
Collateralized mortgage obligations
|
|
|
|
|
|
|
||||||||||||||||||
Asset-backed and other amortizing securities
|
|
|
|
|
|
|
||||||||||||||||||
Other securities
|
|
|
|
|
|
|
||||||||||||||||||
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||
December 31, 2021
|
||||||||||||||||||||||||
U.S. government and agencies
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
State and municipal
|
|
|
|
|
|
|
||||||||||||||||||
Mortgage-backed securities
|
|
|
|
|
|
|
||||||||||||||||||
Collateralized mortgage obligations
|
|
|
|
|
|
|
||||||||||||||||||
Asset-backed and other amortizing securities
|
|
|
|
|
|
|
||||||||||||||||||
Other securities
|
|
|
|
|
|
|
||||||||||||||||||
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
March 31,
2022
|
December 31,
2021
|
|||||||
Commercial real estate
|
$
|
|
$
|
|
||||
Commercial - specialized
|
|
|
||||||
Commercial - general
|
|
|
||||||
Consumer:
|
||||||||
1-4 family residential
|
|
|
||||||
Auto loans
|
|
|
||||||
Other consumer
|
|
|
||||||
Construction
|
|
|
||||||
|
|
|||||||
Allowance for loan losses
|
(
|
)
|
(
|
)
|
||||
Loans, net
|
$
|
|
$
|
|
Beginning
Balance
|
Provision for
Loan Losses
|
Charge-offs
|
Recoveries
|
Ending
Balance
|
||||||||||||||||
For the three months ended March 31, 2022
|
||||||||||||||||||||
Commercial real estate
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
|||||||||
Commercial - specialized
|
|
(
|
)
|
(
|
)
|
|
|
|||||||||||||
Commercial - general
|
|
|
(
|
)
|
|