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Share Name | Share Symbol | Market | Type |
---|---|---|---|
First Business Financial Services Inc | NASDAQ:FBIZ | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
1.30 | 3.35% | 40.13 | 39.99 | 40.15 | 40.13 | 39.38 | 39.38 | 8,194 | 18:27:37 |
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þ
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Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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¨
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Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Wisconsin
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39-1576570
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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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401 Charmany Drive, Madison, WI
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53719
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(Address of Principal Executive Offices)
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(Zip Code)
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Large accelerated filer
¨
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Accelerated filer
þ
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Non-accelerated filer
¨
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Smaller reporting company
¨
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Emerging growth company
¨
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(Do not check if a smaller reporting company)
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March 31,
2017 |
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December 31,
2016 |
||||
|
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(unaudited)
|
|
|
||||
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(In Thousands, Except Share Data)
|
|||||||
Assets
|
|
|
|
|
||||
Cash and due from banks
|
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$
|
15,465
|
|
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$
|
14,596
|
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Short-term investments
|
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45,434
|
|
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62,921
|
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||
Cash and cash equivalents
|
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60,899
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|
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77,517
|
|
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Securities available-for-sale, at fair value
|
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147,058
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|
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145,893
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Securities held-to-maturity, at amortized cost
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38,485
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38,612
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Loans held for sale
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3,924
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1,111
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Loans and leases receivable, net of allowance for loan and lease losses of $21,666 and $20,912, respectively
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1,459,305
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1,429,763
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Premises and equipment, net
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3,955
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3,772
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Foreclosed properties
|
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1,472
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1,472
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Bank-owned life insurance
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39,358
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39,048
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Federal Home Loan Bank and Federal Reserve Bank stock, at cost
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4,782
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2,131
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Goodwill and other intangible assets
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12,774
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12,773
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Accrued interest receivable and other assets
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28,578
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28,607
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Total assets
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$
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1,800,590
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$
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1,780,699
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Liabilities and Stockholders’ Equity
|
|
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||||
Deposits
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$
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1,492,714
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$
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1,538,855
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Federal Home Loan Bank advances and other borrowings
|
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121,841
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|
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59,676
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Junior subordinated notes
|
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10,008
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10,004
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Accrued interest payable and other liabilities
|
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11,893
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|
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10,514
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Total liabilities
|
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1,636,456
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1,619,049
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Stockholders’ equity:
|
|
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|
||||
Preferred stock, $0.01 par value, 2,500,000 shares authorized, none issued or outstanding
|
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—
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—
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Common stock, $0.01 par value, 25,000,000 shares authorized, 8,961,789 and 8,959,239 shares issued, 8,718,307 and 8,715,856 shares outstanding at March 31, 2017 and December 31, 2016, respectively
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90
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|
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90
|
|
||
Additional paid-in capital
|
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77,818
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77,542
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||
Retained earnings
|
|
93,581
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|
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91,317
|
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Accumulated other comprehensive loss
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(576
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)
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(522
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)
|
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Treasury stock, 243,482 and 243,383 shares at March 31, 2017 and December 31, 2016, respectively, at cost
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(6,779
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)
|
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(6,777
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)
|
||
Total stockholders’ equity
|
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164,134
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|
|
161,650
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|
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Total liabilities and stockholders’ equity
|
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$
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1,800,590
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|
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$
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1,780,699
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|
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For the Three Months Ended March 31,
|
||||||
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2017
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|
2016
|
||||
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(In Thousands, Except Per Share Data)
|
||||||
Interest income
|
|
|
|
|
||||
Loans and leases
|
|
$
|
17,522
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|
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$
|
18,445
|
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Securities income
|
|
779
|
|
|
722
|
|
||
Short-term investments
|
|
146
|
|
|
176
|
|
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Total interest income
|
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18,447
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|
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19,343
|
|
||
Interest expense
|
|
|
|
|
||||
Deposits
|
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2,673
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|
|
3,053
|
|
||
Federal Home Loan Bank advances and other borrowings
|
|
612
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|
|
474
|
|
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Junior subordinated notes
|
|
274
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|
|
277
|
|
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Total interest expense
|
|
3,559
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|
|
3,804
|
|
||
Net interest income
|
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14,888
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|
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15,539
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|
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Provision for loan and lease losses
|
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572
|
|
|
525
|
|
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Net interest income after provision for loan and lease losses
|
|
14,316
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|
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15,014
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|
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Non-interest income
|
|
|
|
|
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Trust and investment services fee income
|
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1,629
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|
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1,273
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|
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Gain on sale of Small Business Administration loans
|
|
360
|
|
|
1,376
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|
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Gain on sale of residential mortgage loans
|
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11
|
|
|
145
|
|
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Service charges on deposits
|
|
765
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742
|
|
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Loan fees
|
|
458
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|
|
609
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|
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Increase in cash surrender value of bank-owned life insurance
|
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311
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|
|
243
|
|
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Other non-interest income
|
|
529
|
|
|
206
|
|
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Total non-interest income
|
|
4,063
|
|
|
4,594
|
|
||
Non-interest expense
|
|
|
|
|
||||
Compensation
|
|
8,683
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|
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8,370
|
|
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Occupancy
|
|
475
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|
|
508
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|
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Professional fees
|
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1,010
|
|
|
861
|
|
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Data processing
|
|
584
|
|
|
651
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|
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Marketing
|
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370
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|
|
734
|
|
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Equipment
|
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283
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|
|
280
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|
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Computer software
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683
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|
494
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|
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FDIC insurance
|
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380
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|
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291
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|
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Collateral liquidation costs
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92
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|
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47
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|
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Impairment of tax credit investments
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113
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|
|
112
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|
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Small Business Administration recourse provision
|
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6
|
|
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—
|
|
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Other non-interest expense
|
|
881
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|
|
351
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|
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Total non-interest expense
|
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13,560
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|
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12,699
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Income before income tax expense
|
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4,819
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|
|
6,909
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|
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Income tax expense
|
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1,422
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|
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2,356
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|
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Net income
|
|
$
|
3,397
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|
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$
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4,553
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Earnings per common share
|
|
|
|
|
||||
Basic
|
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$
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0.39
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$
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0.52
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Diluted
|
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0.39
|
|
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0.52
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|
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Dividends declared per share
|
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0.13
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|
|
0.12
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|
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For the Three Months Ended March 31,
|
||||||
|
|
2017
|
|
2016
|
||||
|
|
(In Thousands)
|
||||||
Net income
|
|
$
|
3,397
|
|
|
$
|
4,553
|
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Other comprehensive (loss) income, before tax
|
|
|
|
|
||||
Securities available-for-sale:
|
|
|
|
|
||||
Net unrealized securities (losses) gains arising during the period
|
|
(83
|
)
|
|
876
|
|
||
Securities held-to-maturity:
|
|
|
|
|
||||
Amortization of net unrealized losses transferred from available-for-sale
|
|
26
|
|
|
40
|
|
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Income tax benefit (expense)
|
|
3
|
|
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(354
|
)
|
||
Total other comprehensive (loss) income
|
|
$
|
(54
|
)
|
|
$
|
562
|
|
Comprehensive income
|
|
$
|
3,343
|
|
|
$
|
5,115
|
|
|
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Common Shares Outstanding
|
|
Common
Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
(Loss) Income
|
|
Treasury
Stock
|
|
Total
|
|||||||||||||
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(In Thousands, Except Share Data)
|
|||||||||||||||||||||||||
Balance at December 31, 2015
|
|
8,699,410
|
|
|
$
|
89
|
|
|
$
|
76,549
|
|
|
$
|
80,584
|
|
|
$
|
(80
|
)
|
|
$
|
(6,310
|
)
|
|
$
|
150,832
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,553
|
|
|
—
|
|
|
—
|
|
|
4,553
|
|
||||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
562
|
|
|
—
|
|
|
562
|
|
||||||
Share-based compensation - restricted shares
|
|
861
|
|
|
—
|
|
|
296
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
296
|
|
||||||
Cash dividends ($0.12 per share)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,042
|
)
|
|
—
|
|
|
—
|
|
|
(1,042
|
)
|
||||||
Treasury stock purchased
|
|
(99
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
||||||
Balance at March 31, 2016
|
|
8,700,172
|
|
|
$
|
89
|
|
|
$
|
76,845
|
|
|
$
|
84,095
|
|
|
$
|
482
|
|
|
$
|
(6,312
|
)
|
|
$
|
155,199
|
|
|
|
Common Shares Outstanding
|
|
Common
Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Treasury
Stock
|
|
Total
|
|||||||||||||
|
|
(In Thousands, Except Share Data)
|
|||||||||||||||||||||||||
Balance at December 31, 2016
|
|
8,715,856
|
|
|
$
|
90
|
|
|
$
|
77,542
|
|
|
$
|
91,317
|
|
|
$
|
(522
|
)
|
|
$
|
(6,777
|
)
|
|
$
|
161,650
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,397
|
|
|
—
|
|
|
—
|
|
|
3,397
|
|
||||||
Other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(54
|
)
|
|
—
|
|
|
(54
|
)
|
||||||
Share-based compensation - restricted shares
|
|
2,550
|
|
|
—
|
|
|
276
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
276
|
|
||||||
Cash dividends ($0.13 per share)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,133
|
)
|
|
—
|
|
|
—
|
|
|
(1,133
|
)
|
||||||
Treasury stock purchased
|
|
(99
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
||||||
Balance at March 31, 2017
|
|
8,718,307
|
|
|
$
|
90
|
|
|
$
|
77,818
|
|
|
$
|
93,581
|
|
|
$
|
(576
|
)
|
|
$
|
(6,779
|
)
|
|
$
|
164,134
|
|
|
|
For the Three Months Ended March 31,
|
||||||
|
|
2017
|
|
2016
|
||||
|
|
(In Thousands)
|
||||||
Operating activities
|
|
|
|
|
||||
Net income
|
|
$
|
3,397
|
|
|
$
|
4,553
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
||||
Deferred income taxes, net
|
|
(75
|
)
|
|
(98
|
)
|
||
Impairment of tax credit investments
|
|
113
|
|
|
112
|
|
||
Provision for loan and lease losses
|
|
572
|
|
|
525
|
|
||
Depreciation, amortization and accretion, net
|
|
384
|
|
|
243
|
|
||
Share-based compensation
|
|
276
|
|
|
296
|
|
||
Increase in value of bank-owned life insurance policies
|
|
(311
|
)
|
|
(243
|
)
|
||
Origination of loans for sale
|
|
(10,646
|
)
|
|
(13,986
|
)
|
||
Sale of loans originated for sale
|
|
10,244
|
|
|
22,288
|
|
||
Gain on sale of loans originated for sale
|
|
(371
|
)
|
|
(1,521
|
)
|
||
Excess tax benefit from share-based compensation
|
|
(7
|
)
|
|
(6
|
)
|
||
Returns on investments in limited partnerships
|
|
92
|
|
|
—
|
|
||
Net increase in accrued interest receivable and other assets
|
|
(159
|
)
|
|
(657
|
)
|
||
Net increase (decrease) in accrued interest payable and other liabilities
|
|
1,379
|
|
|
(1,685
|
)
|
||
Net cash provided by operating activities
|
|
4,888
|
|
|
9,821
|
|
||
Investing activities
|
|
|
|
|
||||
Proceeds from maturities, redemptions and paydowns of available-for-sale securities
|
|
9,434
|
|
|
9,126
|
|
||
Proceeds from maturities, redemptions and paydowns of held-to-maturity securities
|
|
730
|
|
|
802
|
|
||
Purchases of available-for-sale and held-to-maturity securities
|
|
(11,517
|
)
|
|
(8,802
|
)
|
||
Net increase in loans and leases
|
|
(32,061
|
)
|
|
(23,321
|
)
|
||
Investment in Federal Home Loan Bank and Federal Reserve Bank Stock
|
|
(3,495
|
)
|
|
(7
|
)
|
||
Proceeds from the sale of Federal Home Loan Bank Stock
|
|
844
|
|
|
116
|
|
||
Purchases of leasehold improvements and equipment, net
|
|
(363
|
)
|
|
(113
|
)
|
||
Net cash used in investing activities
|
|
(36,428
|
)
|
|
(22,199
|
)
|
||
Financing activities
|
|
|
|
|
||||
Net (decrease) increase in deposits
|
|
(46,133
|
)
|
|
4,412
|
|
||
Repayment of Federal Home Loan Bank advances
|
|
(115,916
|
)
|
|
(1,500
|
)
|
||
Proceeds from Federal Home Loan Bank advances
|
|
178,416
|
|
|
—
|
|
||
Net (decrease) increase in other borrowed funds
|
|
(310
|
)
|
|
1,800
|
|
||
Cash dividends paid
|
|
(1,133
|
)
|
|
(1,042
|
)
|
||
Purchase of treasury stock
|
|
(2
|
)
|
|
(2
|
)
|
||
Net cash provided by financing activities
|
|
14,922
|
|
|
3,668
|
|
||
Net decrease in cash and cash equivalents
|
|
(16,618
|
)
|
|
(8,710
|
)
|
||
Cash and cash equivalents at the beginning of the period
|
|
77,517
|
|
|
113,564
|
|
||
Cash and cash equivalents at the end of the period
|
|
$
|
60,899
|
|
|
$
|
104,854
|
|
Supplementary cash flow information
|
|
|
|
|
||||
Cash paid during the period for:
|
|
|
|
|
||||
Interest paid on deposits and borrowings
|
|
$
|
3,386
|
|
|
$
|
3,633
|
|
Income taxes paid
|
|
(314
|
)
|
|
1,521
|
|
||
Non-cash investing and financing activities:
|
|
|
|
|
||||
Transfer of loans from held-to-maturity to held-for-sale
|
|
2,040
|
|
|
5,776
|
|
|
|
For the Three Months Ended March 31,
|
||||||
|
|
2017
|
|
2016
|
||||
|
|
(Dollars in Thousands, Except Share Data)
|
||||||
Basic earnings per common share
|
|
|
|
|
||||
Net income
|
|
$
|
3,397
|
|
|
$
|
4,553
|
|
Less: earnings allocated to participating securities
|
|
45
|
|
|
70
|
|
||
Basic earnings allocated to common shareholders
|
|
$
|
3,352
|
|
|
$
|
4,483
|
|
Weighted-average common shares outstanding, excluding participating securities
|
|
8,600,620
|
|
|
8,565,050
|
|
||
Basic earnings per common share
|
|
$
|
0.39
|
|
|
$
|
0.52
|
|
|
|
|
|
|
||||
Diluted earnings per common share
|
|
|
|
|
||||
Earnings allocated to common shareholders, diluted
|
|
$
|
3,352
|
|
|
$
|
4,483
|
|
Weighted-average diluted common shares outstanding, excluding participating securities
|
|
8,600,620
|
|
|
8,565,050
|
|
||
Diluted earnings per common share
|
|
$
|
0.39
|
|
|
$
|
0.52
|
|
|
|
Number of
Restricted Shares/Units
|
|
Weighted Average
Grant-Date
Fair Value
|
|||
Nonvested balance as of December 31, 2015
|
|
135,471
|
|
|
$
|
20.13
|
|
Granted
|
|
60,415
|
|
|
22.74
|
|
|
Vested
|
|
(56,090
|
)
|
|
18.71
|
|
|
Forfeited
|
|
(23,551
|
)
|
|
20.90
|
|
|
Nonvested balance as of December 31, 2016
|
|
116,245
|
|
|
21.13
|
|
|
Granted
|
|
2,550
|
|
|
25.52
|
|
|
Vested
|
|
(2,163
|
)
|
|
23.91
|
|
|
Forfeited
|
|
—
|
|
|
—
|
|
|
Nonvested balance as of March 31, 2017
|
|
116,632
|
|
|
$
|
21.17
|
|
|
For the Three Months Ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
|
(In Thousands)
|
||||||
Share-based compensation expense
|
$
|
276
|
|
|
$
|
296
|
|
|
|
As of March 31, 2017
|
||||||||||||||
|
|
Amortized Cost
|
|
Gross
Unrealized Gains
|
|
Gross
Unrealized Losses
|
|
Fair Value
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Government agency obligations - government-sponsored enterprises
|
|
$
|
6,299
|
|
|
$
|
10
|
|
|
$
|
(9
|
)
|
|
$
|
6,300
|
|
Municipal obligations
|
|
8,218
|
|
|
8
|
|
|
(50
|
)
|
|
8,176
|
|
||||
Asset-backed securities
|
|
1,067
|
|
|
—
|
|
|
(17
|
)
|
|
1,050
|
|
||||
Collateralized mortgage obligations - government issued
|
|
27,744
|
|
|
403
|
|
|
(160
|
)
|
|
27,987
|
|
||||
Collateralized mortgage obligations - government-sponsored enterprises
|
|
104,381
|
|
|
159
|
|
|
(995
|
)
|
|
103,545
|
|
||||
|
|
$
|
147,709
|
|
|
$
|
580
|
|
|
$
|
(1,231
|
)
|
|
$
|
147,058
|
|
|
|
As of December 31, 2016
|
||||||||||||||
|
|
Amortized Cost
|
|
Gross
Unrealized Gains
|
|
Gross
Unrealized Losses
|
|
Fair Value
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Government agency obligations - government-sponsored enterprises
|
|
$
|
6,298
|
|
|
$
|
7
|
|
|
$
|
(10
|
)
|
|
$
|
6,295
|
|
Municipal obligations
|
|
8,246
|
|
|
2
|
|
|
(92
|
)
|
|
8,156
|
|
||||
Asset-backed securities
|
|
1,116
|
|
|
—
|
|
|
(35
|
)
|
|
1,081
|
|
||||
Collateralized mortgage obligations - government issued
|
|
30,936
|
|
|
423
|
|
|
(146
|
)
|
|
31,213
|
|
||||
Collateralized mortgage obligations - government-sponsored enterprises
|
|
99,865
|
|
|
252
|
|
|
(969
|
)
|
|
99,148
|
|
||||
|
|
$
|
146,461
|
|
|
$
|
684
|
|
|
$
|
(1,252
|
)
|
|
$
|
145,893
|
|
|
|
As of March 31, 2017
|
||||||||||||||
|
|
Amortized Cost
|
|
Gross
Unrealized Gains
|
|
Gross
Unrealized Losses
|
|
Fair Value
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Held-to-maturity:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Government agency obligations - government-sponsored enterprises
|
|
$
|
1,497
|
|
|
$
|
2
|
|
|
$
|
(3
|
)
|
|
$
|
1,496
|
|
Municipal obligations
|
|
21,764
|
|
|
192
|
|
|
(37
|
)
|
|
21,919
|
|
||||
Collateralized mortgage obligations - government issued
|
|
8,675
|
|
|
17
|
|
|
(34
|
)
|
|
8,658
|
|
||||
Collateralized mortgage obligations - government-sponsored enterprises
|
|
6,549
|
|
|
—
|
|
|
(67
|
)
|
|
6,482
|
|
||||
|
|
$
|
38,485
|
|
|
$
|
211
|
|
|
$
|
(141
|
)
|
|
$
|
38,555
|
|
|
|
As of December 31, 2016
|
||||||||||||||
|
|
Amortized Cost
|
|
Gross
Unrealized Gains
|
|
Gross
Unrealized Losses
|
|
Fair Value
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Held-to-maturity:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Government agency obligations - government-sponsored enterprises
|
|
$
|
1,497
|
|
|
$
|
2
|
|
|
$
|
(5
|
)
|
|
$
|
1,494
|
|
Municipal obligations
|
|
21,173
|
|
|
62
|
|
|
(78
|
)
|
|
21,157
|
|
||||
Collateralized mortgage obligations - government issued
|
|
9,148
|
|
|
17
|
|
|
(38
|
)
|
|
9,127
|
|
||||
Collateralized mortgage obligations - government-sponsored enterprises
|
|
6,794
|
|
|
6
|
|
|
(58
|
)
|
|
6,742
|
|
||||
|
|
$
|
38,612
|
|
|
$
|
87
|
|
|
$
|
(179
|
)
|
|
$
|
38,520
|
|
|
|
Available-for-Sale
|
|
Held-to-Maturity
|
||||||||||||
|
|
Amortized Cost
|
|
Fair Value
|
|
Amortized Cost
|
|
Fair Value
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Due in one year or less
|
|
$
|
5,084
|
|
|
$
|
5,083
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Due in one year through five years
|
|
15,961
|
|
|
15,933
|
|
|
8,928
|
|
|
8,978
|
|
||||
Due in five through ten years
|
|
63,774
|
|
|
63,937
|
|
|
13,284
|
|
|
13,370
|
|
||||
Due in over ten years
|
|
62,890
|
|
|
62,105
|
|
|
16,273
|
|
|
16,207
|
|
||||
|
|
$
|
147,709
|
|
|
$
|
147,058
|
|
|
$
|
38,485
|
|
|
$
|
38,555
|
|
|
|
As of March 31, 2017
|
||||||||||||||||||||||
|
|
Less than 12 Months
|
|
12 Months or Longer
|
|
Total
|
||||||||||||||||||
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
||||||||||||
|
|
(In Thousands)
|
||||||||||||||||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Government agency obligations - government-sponsored enterprises
|
|
$
|
3,791
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,791
|
|
|
$
|
9
|
|
Municipal obligations
|
|
4,951
|
|
|
47
|
|
|
959
|
|
|
3
|
|
|
5,910
|
|
|
50
|
|
||||||
Asset-backed securities
|
|
—
|
|
|
—
|
|
|
1,050
|
|
|
17
|
|
|
1,050
|
|
|
17
|
|
||||||
Collateralized mortgage obligations - government issued
|
|
10,144
|
|
|
145
|
|
|
475
|
|
|
15
|
|
|
10,619
|
|
|
160
|
|
||||||
Collateralized mortgage obligations - government-sponsored enterprises
|
|
70,580
|
|
|
944
|
|
|
2,318
|
|
|
51
|
|
|
72,898
|
|
|
995
|
|
||||||
|
|
$
|
89,466
|
|
|
$
|
1,145
|
|
|
$
|
4,802
|
|
|
$
|
86
|
|
|
$
|
94,268
|
|
|
$
|
1,231
|
|
|
|
As of December 31, 2016
|
||||||||||||||||||||||
|
|
Less than 12 Months
|
|
12 Months or Longer
|
|
Total
|
||||||||||||||||||
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
||||||||||||
|
|
(In Thousands)
|
||||||||||||||||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Government agency obligations - government-sponsored enterprises
|
|
$
|
1,991
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,991
|
|
|
$
|
10
|
|
Municipal obligations
|
|
7,207
|
|
|
89
|
|
|
406
|
|
|
3
|
|
|
7,613
|
|
|
92
|
|
||||||
Asset-backed securities
|
|
—
|
|
|
$
|
—
|
|
|
1,081
|
|
|
35
|
|
|
1,081
|
|
|
35
|
|
|||||
Collateralized mortgage obligations - government issued
|
|
10,552
|
|
|
130
|
|
|
493
|
|
|
16
|
|
|
11,045
|
|
|
146
|
|
||||||
Collateralized mortgage obligations - government-sponsored enterprises
|
|
54,843
|
|
|
931
|
|
|
1,819
|
|
|
38
|
|
|
56,662
|
|
|
969
|
|
||||||
|
|
$
|
74,593
|
|
|
$
|
1,160
|
|
|
$
|
3,799
|
|
|
$
|
92
|
|
|
$
|
78,392
|
|
|
$
|
1,252
|
|
|
|
As of March 31, 2017
|
||||||||||||||||||||||
|
|
Less than 12 Months
|
|
12 Months or Longer
|
|
Total
|
||||||||||||||||||
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
||||||||||||
|
|
(In Thousands)
|
||||||||||||||||||||||
Held-to-maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Government agency obligations - government-sponsored enterprises
|
|
$
|
1,000
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,000
|
|
|
$
|
3
|
|
Municipal obligations
|
|
2,615
|
|
|
37
|
|
|
—
|
|
|
—
|
|
|
2,615
|
|
|
37
|
|
||||||
Collateralized mortgage obligations - government issued
|
|
3,537
|
|
|
20
|
|
|
852
|
|
|
14
|
|
|
4,389
|
|
|
34
|
|
||||||
Collateralized mortgage obligations - government-sponsored enterprises
|
|
2,345
|
|
|
35
|
|
|
4,204
|
|
|
32
|
|
|
6,549
|
|
|
67
|
|
||||||
|
|
$
|
9,497
|
|
|
$
|
95
|
|
|
$
|
5,056
|
|
|
$
|
46
|
|
|
$
|
14,553
|
|
|
$
|
141
|
|
|
|
As of December 31, 2016
|
||||||||||||||||||||||
|
|
Less than 12 Months
|
|
12 Months or Longer
|
|
Total
|
||||||||||||||||||
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
||||||||||||
|
|
(In Thousands)
|
||||||||||||||||||||||
Held-to-maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Government agency obligations - government-sponsored enterprises
|
|
$
|
1,000
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,000
|
|
|
$
|
5
|
|
Municipal obligations
|
|
9,472
|
|
|
78
|
|
|
—
|
|
|
—
|
|
|
9,472
|
|
|
78
|
|
||||||
Collateralized mortgage obligations - government issued
|
|
6,980
|
|
|
38
|
|
|
—
|
|
|
—
|
|
|
6,980
|
|
|
38
|
|
||||||
Collateralized mortgage obligations - government-sponsored enterprises
|
|
4,682
|
|
|
58
|
|
|
—
|
|
|
—
|
|
|
4,682
|
|
|
58
|
|
||||||
|
|
$
|
22,134
|
|
|
$
|
179
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
22,134
|
|
|
$
|
179
|
|
|
|
March 31,
2017 |
|
December 31,
2016 |
||||
|
|
(In Thousands)
|
||||||
Commercial real estate:
|
|
|
|
|
||||
Commercial real estate — owner occupied
|
|
$
|
183,016
|
|
|
$
|
176,459
|
|
Commercial real estate — non-owner occupied
|
|
492,366
|
|
|
473,158
|
|
||
Land development
|
|
52,663
|
|
|
56,638
|
|
||
Construction
|
|
91,343
|
|
|
101,206
|
|
||
Multi-family
|
|
107,669
|
|
|
92,762
|
|
||
1-4 family
|
|
40,036
|
|
|
45,651
|
|
||
Total commercial real estate
|
|
967,093
|
|
|
945,874
|
|
||
Commercial and industrial
|
|
458,778
|
|
|
450,298
|
|
||
Direct financing leases, net
|
|
29,330
|
|
|
30,951
|
|
||
Consumer and other:
|
|
|
|
|
||||
Home equity and second mortgages
|
|
8,237
|
|
|
8,412
|
|
||
Other
|
|
18,859
|
|
|
16,329
|
|
||
Total consumer and other
|
|
27,096
|
|
|
24,741
|
|
||
Total gross loans and leases receivable
|
|
1,482,297
|
|
|
1,451,864
|
|
||
Less:
|
|
|
|
|
||||
Allowance for loan and lease losses
|
|
21,666
|
|
|
20,912
|
|
||
Deferred loan fees
|
|
1,326
|
|
|
1,189
|
|
||
Loans and leases receivable, net
|
|
$
|
1,459,305
|
|
|
$
|
1,429,763
|
|
|
March 31,
2017 |
|
December 31,
2016 |
||||
|
(In Thousands)
|
||||||
Contractually required payments
|
$
|
2,986
|
|
|
$
|
3,265
|
|
Fair value of purchased credit-impaired loans
|
1,234
|
|
|
1,432
|
|
|
As of and for the Three Months Ended March 31, 2017
|
|
As of and for the Year Ended December 31, 2016
|
||||
|
(In Thousands)
|
||||||
Accretable yield, beginning of period
|
$
|
135
|
|
|
$
|
414
|
|
Accretion recognized in interest income
|
(3
|
)
|
|
(129
|
)
|
||
Reclassification to nonaccretable difference for loans with changing cash flows
(1)
|
(3
|
)
|
|
(244
|
)
|
||
Changes in accretable yield for non-credit related changes in expected cash flows
(2)
|
(5
|
)
|
|
94
|
|
||
Accretable yield, end of period
|
$
|
124
|
|
|
$
|
135
|
|
(1)
|
Represents changes in accretable yield for those loans that are driven primarily by credit performance.
|
(2)
|
Represents changes in accretable yield for those loans that are driven primarily by changes in actual and estimated payments.
|
|
|
March 31, 2017
|
||||||||||||||||||
|
|
Category
|
|
|
||||||||||||||||
|
|
I
|
|
II
|
|
III
|
|
IV
|
|
Total
|
||||||||||
|
|
(Dollars in Thousands)
|
||||||||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate — owner occupied
|
|
$
|
146,120
|
|
|
$
|
19,410
|
|
|
$
|
11,992
|
|
|
$
|
5,494
|
|
|
$
|
183,016
|
|
Commercial real estate — non-owner occupied
|
|
465,826
|
|
|
22,813
|
|
|
1,748
|
|
|
1,979
|
|
|
492,366
|
|
|||||
Land development
|
|
48,206
|
|
|
814
|
|
|
288
|
|
|
3,355
|
|
|
52,663
|
|
|||||
Construction
|
|
84,930
|
|
|
799
|
|
|
1,012
|
|
|
4,602
|
|
|
91,343
|
|
|||||
Multi-family
|
|
107,518
|
|
|
151
|
|
|
—
|
|
|
—
|
|
|
107,669
|
|
|||||
1-4 family
|
|
34,546
|
|
|
1,561
|
|
|
1,394
|
|
|
2,535
|
|
|
40,036
|
|
|||||
Total commercial real estate
|
|
887,146
|
|
|
45,548
|
|
|
16,434
|
|
|
17,965
|
|
|
967,093
|
|
|||||
Commercial and industrial
|
|
354,072
|
|
|
33,188
|
|
|
51,963
|
|
|
19,555
|
|
|
458,778
|
|
|||||
Direct financing leases, net
|
|
27,930
|
|
|
1,400
|
|
|
—
|
|
|
—
|
|
|
29,330
|
|
|||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Home equity and second mortgages
|
|
7,734
|
|
|
485
|
|
|
11
|
|
|
7
|
|
|
8,237
|
|
|||||
Other
|
|
18,065
|
|
|
100
|
|
|
—
|
|
|
694
|
|
|
18,859
|
|
|||||
Total consumer and other
|
|
25,799
|
|
|
585
|
|
|
11
|
|
|
701
|
|
|
27,096
|
|
|||||
Total gross loans and leases receivable
|
|
$
|
1,294,947
|
|
|
$
|
80,721
|
|
|
$
|
68,408
|
|
|
$
|
38,221
|
|
|
$
|
1,482,297
|
|
Category as a % of total portfolio
|
|
87.36
|
%
|
|
5.45
|
%
|
|
4.61
|
%
|
|
2.58
|
%
|
|
100.00
|
%
|
|
|
December 31, 2016
|
||||||||||||||||||
|
|
Category
|
|
|
||||||||||||||||
|
|
I
|
|
II
|
|
III
|
|
IV
|
|
Total
|
||||||||||
|
|
(Dollars in Thousands)
|
||||||||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate — owner occupied
|
|
$
|
142,704
|
|
|
$
|
20,294
|
|
|
$
|
11,174
|
|
|
$
|
2,287
|
|
|
$
|
176,459
|
|
Commercial real estate — non-owner occupied
|
|
447,895
|
|
|
20,933
|
|
|
2,721
|
|
|
1,609
|
|
|
473,158
|
|
|||||
Land development
|
|
52,082
|
|
|
823
|
|
|
293
|
|
|
3,440
|
|
|
56,638
|
|
|||||
Construction
|
|
93,510
|
|
|
3,154
|
|
|
1,624
|
|
|
2,918
|
|
|
101,206
|
|
|||||
Multi-family
|
|
87,418
|
|
|
1,937
|
|
|
3,407
|
|
|
—
|
|
|
92,762
|
|
|||||
1-4 family
|
|
38,504
|
|
|
3,144
|
|
|
1,431
|
|
|
2,572
|
|
|
45,651
|
|
|||||
Total commercial real estate
|
|
862,113
|
|
|
50,285
|
|
|
20,650
|
|
|
12,826
|
|
|
945,874
|
|
|||||
Commercial and industrial
|
|
348,201
|
|
|
42,949
|
|
|
46,675
|
|
|
12,473
|
|
|
450,298
|
|
|||||
Direct financing leases, net
|
|
29,351
|
|
|
1,600
|
|
|
—
|
|
|
—
|
|
|
30,951
|
|
|||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Home equity and second mortgages
|
|
8,271
|
|
|
121
|
|
|
12
|
|
|
8
|
|
|
8,412
|
|
|||||
Other
|
|
15,714
|
|
|
—
|
|
|
11
|
|
|
604
|
|
|
16,329
|
|
|||||
Total consumer and other
|
|
23,985
|
|
|
121
|
|
|
23
|
|
|
612
|
|
|
24,741
|
|
|||||
Total gross loans and leases receivable
|
|
$
|
1,263,650
|
|
|
$
|
94,955
|
|
|
$
|
67,348
|
|
|
$
|
25,911
|
|
|
$
|
1,451,864
|
|
Category as a % of total portfolio
|
|
87.04
|
%
|
|
6.54
|
%
|
|
4.64
|
%
|
|
1.78
|
%
|
|
100.00
|
%
|
|
|
March 31, 2017
|
||||||||||||||||||||||
|
|
30-59
Days Past Due |
|
60-89
Days Past Due |
|
Greater
Than 90 Days Past Due |
|
Total Past Due
|
|
Current
|
|
Total Loans and Leases
|
||||||||||||
|
|
(Dollars in Thousands)
|
||||||||||||||||||||||
Accruing loans and leases
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owner occupied
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
177,583
|
|
|
$
|
177,583
|
|
Non-owner occupied
|
|
—
|
|
|
266
|
|
|
—
|
|
|
266
|
|
|
490,121
|
|
|
490,387
|
|
||||||
Land development
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
49,308
|
|
|
49,308
|
|
||||||
Construction
|
|
431
|
|
|
166
|
|
|
—
|
|
|
597
|
|
|
86,144
|
|
|
86,741
|
|
||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
107,669
|
|
|
107,669
|
|
||||||
1-4 family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38,125
|
|
|
38,125
|
|
||||||
Commercial and industrial
|
|
327
|
|
|
—
|
|
|
—
|
|
|
327
|
|
|
438,906
|
|
|
439,233
|
|
||||||
Direct financing leases, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29,330
|
|
|
29,330
|
|
||||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Home equity and second mortgages
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,237
|
|
|
8,237
|
|
||||||
Other
|
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
18,158
|
|
|
18,165
|
|
||||||
Total
|
|
$
|
765
|
|
|
$
|
432
|
|
|
$
|
—
|
|
|
$
|
1,197
|
|
|
$
|
1,443,581
|
|
|
$
|
1,444,778
|
|
Non-accruing loans and leases
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owner occupied
|
|
$
|
—
|
|
|
$
|
429
|
|
|
$
|
4,416
|
|
|
$
|
4,845
|
|
|
$
|
588
|
|
|
$
|
5,433
|
|
Non-owner occupied
|
|
—
|
|
|
—
|
|
|
1,941
|
|
|
1,941
|
|
|
38
|
|
|
1,979
|
|
||||||
Land development
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,355
|
|
|
3,355
|
|
||||||
Construction
|
|
—
|
|
|
—
|
|
|
2,539
|
|
|
2,539
|
|
|
2,063
|
|
|
4,602
|
|
||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
1-4 family
|
|
—
|
|
|
—
|
|
|
1,606
|
|
|
1,606
|
|
|
305
|
|
|
1,911
|
|
||||||
Commercial and industrial
|
|
239
|
|
|
—
|
|
|
12,455
|
|
|
12,694
|
|
|
6,851
|
|
|
19,545
|
|
||||||
Direct financing leases, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home equity and second mortgages
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Other
|
|
82
|
|
|
—
|
|
|
612
|
|
|
694
|
|
|
—
|
|
|
694
|
|
||||||
Total
|
|
$
|
321
|
|
|
$
|
429
|
|
|
$
|
23,569
|
|
|
$
|
24,319
|
|
|
$
|
13,200
|
|
|
$
|
37,519
|
|
Total loans and leases
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owner occupied
|
|
$
|
—
|
|
|
$
|
429
|
|
|
$
|
4,416
|
|
|
$
|
4,845
|
|
|
$
|
178,171
|
|
|
$
|
183,016
|
|
Non-owner occupied
|
|
—
|
|
|
266
|
|
|
1,941
|
|
|
2,207
|
|
|
490,159
|
|
|
492,366
|
|
||||||
Land development
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
52,663
|
|
|
52,663
|
|
||||||
Construction
|
|
431
|
|
|
166
|
|
|
2,539
|
|
|
3,136
|
|
|
88,207
|
|
|
91,343
|
|
||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
107,669
|
|
|
107,669
|
|
||||||
1-4 family
|
|
—
|
|
|
—
|
|
|
1,606
|
|
|
1,606
|
|
|
38,430
|
|
|
40,036
|
|
||||||
Commercial and industrial
|
|
566
|
|
|
—
|
|
|
12,455
|
|
|
13,021
|
|
|
445,757
|
|
|
458,778
|
|
||||||
Direct financing leases, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29,330
|
|
|
29,330
|
|
||||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home equity and second mortgages
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,237
|
|
|
8,237
|
|
||||||
Other
|
|
89
|
|
|
—
|
|
|
612
|
|
|
701
|
|
|
18,158
|
|
|
18,859
|
|
||||||
Total
|
|
$
|
1,086
|
|
|
$
|
861
|
|
|
$
|
23,569
|
|
|
$
|
25,516
|
|
|
$
|
1,456,781
|
|
|
$
|
1,482,297
|
|
Percent of portfolio
|
|
0.07
|
%
|
|
0.06
|
%
|
|
1.59
|
%
|
|
1.72
|
%
|
|
98.28
|
%
|
|
100.00
|
%
|
|
|
December 31, 2016
|
||||||||||||||||||||||
|
|
30-59
Days Past Due |
|
60-89
Days Past Due |
|
Greater
Than 90 Days Past Due |
|
Total Past Due
|
|
Current
|
|
Total Loans and Leases
|
||||||||||||
|
|
(Dollars in Thousands)
|
||||||||||||||||||||||
Accruing loans and leases
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owner occupied
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
174,236
|
|
|
$
|
174,236
|
|
Non-owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
471,549
|
|
|
471,549
|
|
||||||
Land development
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
53,198
|
|
|
53,198
|
|
||||||
Construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
98,288
|
|
|
98,288
|
|
||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
92,762
|
|
|
92,762
|
|
||||||
1-4 family
|
|
75
|
|
|
—
|
|
|
—
|
|
|
75
|
|
|
43,639
|
|
|
43,714
|
|
||||||
Commercial and industrial
|
|
55
|
|
|
468
|
|
|
—
|
|
|
523
|
|
|
437,312
|
|
|
437,835
|
|
||||||
Direct financing leases, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30,951
|
|
|
30,951
|
|
||||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home equity and second mortgages
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,412
|
|
|
8,412
|
|
||||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,725
|
|
|
15,725
|
|
||||||
Total
|
|
$
|
130
|
|
|
$
|
468
|
|
|
$
|
—
|
|
|
$
|
598
|
|
|
$
|
1,426,072
|
|
|
$
|
1,426,670
|
|
Non-accruing loans and leases
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owner occupied
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,183
|
|
|
$
|
1,183
|
|
|
$
|
1,040
|
|
|
$
|
2,223
|
|
Non-owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,609
|
|
|
1,609
|
|
||||||
Land development
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,440
|
|
|
3,440
|
|
||||||
Construction
|
|
2,482
|
|
|
—
|
|
|
436
|
|
|
2,918
|
|
|
—
|
|
|
2,918
|
|
||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
1-4 family
|
|
—
|
|
|
—
|
|
|
1,240
|
|
|
1,240
|
|
|
697
|
|
|
1,937
|
|
||||||
Commercial and industrial
|
|
3,345
|
|
|
168
|
|
|
6,740
|
|
|
10,253
|
|
|
2,210
|
|
|
12,463
|
|
||||||
Direct financing leases, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home equity and second mortgages
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Other
|
|
186
|
|
|
—
|
|
|
378
|
|
|
564
|
|
|
40
|
|
|
604
|
|
||||||
Total
|
|
$
|
6,013
|
|
|
$
|
168
|
|
|
$
|
9,977
|
|
|
$
|
16,158
|
|
|
$
|
9,036
|
|
|
$
|
25,194
|
|
Total loans and leases
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owner occupied
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,183
|
|
|
$
|
1,183
|
|
|
$
|
175,276
|
|
|
$
|
176,459
|
|
Non-owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
473,158
|
|
|
473,158
|
|
||||||
Land development
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
56,638
|
|
|
56,638
|
|
||||||
Construction
|
|
2,482
|
|
|
—
|
|
|
436
|
|
|
2,918
|
|
|
98,288
|
|
|
101,206
|
|
||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
92,762
|
|
|
92,762
|
|
||||||
1-4 family
|
|
75
|
|
|
—
|
|
|
1,240
|
|
|
1,315
|
|
|
44,336
|
|
|
45,651
|
|
||||||
Commercial and industrial
|
|
3,400
|
|
|
636
|
|
|
6,740
|
|
|
10,776
|
|
|
439,522
|
|
|
450,298
|
|
||||||
Direct financing leases, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30,951
|
|
|
30,951
|
|
||||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home equity and second mortgages
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,412
|
|
|
8,412
|
|
||||||
Other
|
|
186
|
|
|
—
|
|
|
378
|
|
|
564
|
|
|
15,765
|
|
|
16,329
|
|
||||||
Total
|
|
$
|
6,143
|
|
|
$
|
636
|
|
|
$
|
9,977
|
|
|
$
|
16,756
|
|
|
$
|
1,435,108
|
|
|
$
|
1,451,864
|
|
Percent of portfolio
|
|
0.42
|
%
|
|
0.04
|
%
|
|
0.69
|
%
|
|
1.15
|
%
|
|
98.85
|
%
|
|
100.00
|
%
|
|
|
March 31,
2017 |
|
December 31,
2016 |
||||
|
|
(Dollars in Thousands)
|
||||||
Non-accrual loans and leases
|
|
|
|
|
||||
Commercial real estate:
|
|
|
|
|
||||
Commercial real estate — owner occupied
|
|
$
|
5,433
|
|
|
$
|
2,223
|
|
Commercial real estate — non-owner occupied
|
|
1,979
|
|
|
1,609
|
|
||
Land development
|
|
3,355
|
|
|
3,440
|
|
||
Construction
|
|
4,602
|
|
|
2,918
|
|
||
Multi-family
|
|
—
|
|
|
—
|
|
||
1-4 family
|
|
1,911
|
|
|
1,937
|
|
||
Total non-accrual commercial real estate
|
|
17,280
|
|
|
12,127
|
|
||
Commercial and industrial
|
|
19,545
|
|
|
12,463
|
|
||
Direct financing leases, net
|
|
—
|
|
|
—
|
|
||
Consumer and other:
|
|
|
|
|
||||
Home equity and second mortgages
|
|
—
|
|
|
—
|
|
||
Other
|
|
694
|
|
|
604
|
|
||
Total non-accrual consumer and other loans
|
|
694
|
|
|
604
|
|
||
Total non-accrual loans and leases
|
|
37,519
|
|
|
25,194
|
|
||
Foreclosed properties, net
|
|
1,472
|
|
|
1,472
|
|
||
Total non-performing assets
|
|
38,991
|
|
|
26,666
|
|
||
Performing troubled debt restructurings
|
|
702
|
|
|
717
|
|
||
Total impaired assets
|
|
$
|
39,693
|
|
|
$
|
27,383
|
|
|
|
March 31,
2017 |
|
December 31,
2016 |
||
Total non-accrual loans and leases to gross loans and leases
|
|
2.53
|
%
|
|
1.74
|
%
|
Total non-performing assets to total gross loans and leases plus foreclosed properties, net
|
|
2.63
|
|
|
1.83
|
|
Total non-performing assets to total assets
|
|
2.17
|
|
|
1.50
|
|
Allowance for loan and lease losses to gross loans and leases
|
|
1.46
|
|
|
1.44
|
|
Allowance for loan and lease losses to non-accrual loans and leases
|
|
57.75
|
|
|
83.00
|
|
|
|
As of March 31, 2017
|
|
As of December 31, 2016
|
||||||||||||||||
|
|
Number
of
Loans
|
|
Pre-Modification
Recorded
Investment
|
|
Post-Modification
Recorded
Investment
|
|
Number
of
Loans
|
|
Pre-Modification
Recorded
Investment
|
|
Post-Modification
Recorded
Investment
|
||||||||
|
|
(Dollars in Thousands)
|
||||||||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial real estate — owner occupied
|
|
3
|
|
$
|
1,065
|
|
|
$
|
919
|
|
|
3
|
|
$
|
1,065
|
|
|
$
|
930
|
|
Commercial real estate — non-owner occupied
|
|
1
|
|
158
|
|
|
38
|
|
|
1
|
|
158
|
|
|
39
|
|
||||
Land development
|
|
1
|
|
5,745
|
|
|
3,354
|
|
|
1
|
|
5,745
|
|
|
3,440
|
|
||||
Construction
|
|
—
|
|
—
|
|
|
—
|
|
|
2
|
|
331
|
|
|
314
|
|
||||
Multi-family
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
||||
1-4 family
|
|
11
|
|
1,391
|
|
|
1,371
|
|
|
11
|
|
1,391
|
|
|
1,393
|
|
||||
Commercial and industrial
|
|
10
|
|
8,094
|
|
|
7,053
|
|
|
10
|
|
8,094
|
|
|
7,058
|
|
||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Home equity and second mortgage
|
|
1
|
|
37
|
|
|
7
|
|
|
1
|
|
37
|
|
|
8
|
|
||||
Other
|
|
1
|
|
2,076
|
|
|
368
|
|
|
1
|
|
2,076
|
|
|
378
|
|
||||
Total
|
|
28
|
|
$
|
18,566
|
|
|
$
|
13,110
|
|
|
30
|
|
$
|
18,897
|
|
|
$
|
13,560
|
|
|
|
As of March 31, 2017
|
|
As of December 31, 2016
|
||||||||||
|
|
Number of
Loans
|
|
Recorded Investment
|
|
Number of
Loans
|
|
Recorded Investment
|
||||||
|
|
(Dollars in Thousands)
|
||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
||||||
Extension of term
|
|
1
|
|
|
$
|
4
|
|
|
1
|
|
|
$
|
8
|
|
Interest rate concession
|
|
1
|
|
|
51
|
|
|
1
|
|
|
52
|
|
||
Combination of extension of term and interest rate concession
|
|
14
|
|
|
5,627
|
|
|
16
|
|
|
6,056
|
|
||
Commercial and industrial:
|
|
|
|
|
|
|
|
|
||||||
Combination of extension of term and interest rate concession
|
|
10
|
|
|
7,053
|
|
|
10
|
|
|
7,058
|
|
||
Consumer and other:
|
|
|
|
|
|
|
|
|
||||||
Extension of term
|
|
1
|
|
|
368
|
|
|
1
|
|
|
378
|
|
||
Combination of extension of term and interest rate concession
|
|
1
|
|
|
7
|
|
|
1
|
|
|
8
|
|
||
Total
|
|
28
|
|
|
$
|
13,110
|
|
|
30
|
|
|
$
|
13,560
|
|
|
|
As of and for the Three Months Ended March 31, 2017
|
|||||||||||||||||||||||||||||
|
|
Recorded
Investment |
|
Unpaid
Principal Balance |
|
Impairment
Reserve |
|
Average
Recorded Investment (1) |
|
Foregone
Interest Income |
|
Interest
Income Recognized |
|
Net
Foregone Interest Income |
|||||||||||||||||
|
|
(In Thousands)
|
|||||||||||||||||||||||||||||
With no impairment reserve recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Owner occupied
|
|
$
|
5,066
|
|
|
$
|
5,066
|
|
|
$
|
—
|
|
|
$
|
2,921
|
|
|
$
|
205
|
|
|
$
|
—
|
|
|
$
|
205
|
|
|||
Non-owner occupied
|
|
1,979
|
|
|
2,019
|
|
|
—
|
|
|
1,996
|
|
|
36
|
|
|
—
|
|
|
36
|
|
||||||||||
Land development
|
|
3,355
|
|
|
6,025
|
|
|
—
|
|
|
3,422
|
|
|
24
|
|
|
—
|
|
|
24
|
|
||||||||||
Construction
|
|
2,120
|
|
|
2,120
|
|
|
—
|
|
|
917
|
|
|
12
|
|
|
—
|
|
|
12
|
|
||||||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
1-4 family
|
|
2,463
|
|
|
2,463
|
|
|
—
|
|
|
2,473
|
|
|
16
|
|
|
—
|
|
|
16
|
|
||||||||||
Commercial and industrial
|
|
7,146
|
|
|
7,146
|
|
|
—
|
|
|
318
|
|
|
83
|
|
|
—
|
|
|
83
|
|
||||||||||
Direct financing leases, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Home equity and second mortgages
|
|
7
|
|
|
7
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Other
|
|
367
|
|
|
1,035
|
|
|
—
|
|
|
368
|
|
|
15
|
|
|
—
|
|
|
15
|
|
||||||||||
Total
|
|
$
|
22,503
|
|
|
$
|
25,881
|
|
|
$
|
—
|
|
|
$
|
12,425
|
|
|
$
|
391
|
|
|
$
|
—
|
|
|
$
|
391
|
|
|||
With impairment reserve recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Owner occupied
|
|
$
|
428
|
|
|
$
|
428
|
|
|
$
|
42
|
|
|
$
|
432
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|||
Non-owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Land development
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
|||||||
Construction
|
|
2,482
|
|
|
2,482
|
|
—
|
|
1,777
|
|
|
2,482
|
|
—
|
|
63
|
|
—
|
|
—
|
|
|
63
|
|
|||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
1-4 family
|
|
72
|
|
|
77
|
|
|
2
|
|
|
72
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||||||
Commercial and industrial
|
|
12,409
|
|
|
12,409
|
|
|
4,010
|
|
|
12,355
|
|
|
251
|
|
|
—
|
|
|
251
|
|
||||||||||
Direct financing leases, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Home equity and second mortgages
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Other
|
|
327
|
|
|
327
|
|
|
327
|
|
|
113
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Total
|
|
$
|
15,718
|
|
|
$
|
15,723
|
|
|
$
|
6,158
|
|
|
$
|
15,454
|
|
|
$
|
321
|
|
|
$
|
—
|
|
|
$
|
321
|
|
|||
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Owner occupied
|
|
$
|
5,494
|
|
|
$
|
5,494
|
|
|
$
|
42
|
|
|
$
|
3,353
|
|
|
$
|
211
|
|
|
$
|
—
|
|
|
$
|
211
|
|
|||
Non-owner occupied
|
|
1,979
|
|
|
2,019
|
|
|
—
|
|
|
1,996
|
|
|
36
|
|
|
—
|
|
|
36
|
|
||||||||||
Land development
|
|
3,355
|
|
|
6,025
|
|
|
—
|
|
|
3,422
|
|
|
24
|
|
|
—
|
|
|
24
|
|
||||||||||
Construction
|
|
4,602
|
|
|
4,602
|
|
|
1,777
|
|
|
3,399
|
|
|
75
|
|
|
—
|
|
|
75
|
|
||||||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
1-4 family
|
|
2,535
|
|
|
2,540
|
|
|
2
|
|
|
2,545
|
|
|
17
|
|
|
—
|
|
|
17
|
|
||||||||||
Commercial and industrial
|
|
19,555
|
|
|
19,555
|
|
|
4,010
|
|
|
12,673
|
|
|
334
|
|
|
—
|
|
|
334
|
|
||||||||||
Direct financing leases, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Home equity and second mortgages
|
|
7
|
|
|
7
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Other
|
|
694
|
|
|
1,362
|
|
|
327
|
|
|
481
|
|
|
15
|
|
|
—
|
|
|
15
|
|
||||||||||
Grand total
|
|
$
|
38,221
|
|
|
$
|
41,604
|
|
|
$
|
6,158
|
|
|
$
|
27,879
|
|
|
$
|
712
|
|
|
$
|
—
|
|
|
$
|
712
|
|
(1)
|
Average recorded investment is calculated primarily using daily average balances.
|
|
|
As of and for the Year Ended December 31, 2016
|
||||||||||||||||||||||||||
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Impairment
Reserve
|
|
Average
Recorded
Investment
(1)
|
|
Foregone
Interest
Income
|
|
Interest
Income
Recognized
|
|
Net
Foregone
Interest
Income
|
||||||||||||||
|
|
(In Thousands)
|
||||||||||||||||||||||||||
With no impairment reserve recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Owner occupied
|
|
$
|
1,788
|
|
|
$
|
1,788
|
|
|
$
|
—
|
|
|
$
|
3,577
|
|
|
$
|
328
|
|
|
$
|
118
|
|
|
$
|
210
|
|
Non-owner occupied
|
|
1,609
|
|
|
1,647
|
|
|
—
|
|
|
1,318
|
|
|
91
|
|
|
79
|
|
|
12
|
|
|||||||
Land development
|
|
3,440
|
|
|
6,111
|
|
|
—
|
|
|
3,898
|
|
|
107
|
|
|
—
|
|
|
107
|
|
|||||||
Construction
|
|
436
|
|
|
438
|
|
|
—
|
|
|
291
|
|
|
20
|
|
|
—
|
|
|
20
|
|
|||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
134
|
|
|
(133
|
)
|
|||||||
1-4 family
|
|
2,379
|
|
|
2,379
|
|
|
—
|
|
|
2,755
|
|
|
125
|
|
|
94
|
|
|
31
|
|
|||||||
Commercial and industrial
|
|
1,307
|
|
|
1,307
|
|
|
—
|
|
|
709
|
|
|
79
|
|
|
62
|
|
|
17
|
|
|||||||
Direct financing leases, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity and second mortgages
|
|
8
|
|
|
8
|
|
|
—
|
|
|
307
|
|
|
16
|
|
|
127
|
|
|
(111
|
)
|
|||||||
Other
|
|
378
|
|
|
1,044
|
|
|
—
|
|
|
510
|
|
|
71
|
|
|
—
|
|
|
71
|
|
|||||||
Total
|
|
$
|
11,345
|
|
|
$
|
14,722
|
|
|
$
|
—
|
|
|
$
|
13,371
|
|
|
$
|
838
|
|
|
$
|
614
|
|
|
$
|
224
|
|
With impairment reserve recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Owner occupied
|
|
$
|
499
|
|
|
$
|
499
|
|
|
$
|
70
|
|
|
$
|
111
|
|
|
$
|
28
|
|
|
$
|
—
|
|
|
$
|
28
|
|
Non-owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Land development
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Construction
|
|
2,482
|
|
|
2,482
|
|
|
1,790
|
|
|
834
|
|
|
45
|
|
|
—
|
|
|
45
|
|
|||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
1-4 family
|
|
193
|
|
|
199
|
|
|
39
|
|
|
203
|
|
|
5
|
|
|
—
|
|
|
5
|
|
|||||||
Commercial and industrial
|
|
11,166
|
|
|
11,166
|
|
|
3,700
|
|
|
8,448
|
|
|
701
|
|
|
—
|
|
|
701
|
|
|||||||
Direct financing leases, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity and second mortgages
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Other
|
|
226
|
|
|
226
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Total
|
|
$
|
14,566
|
|
|
$
|
14,572
|
|
|
$
|
5,599
|
|
|
$
|
9,615
|
|
|
$
|
779
|
|
|
$
|
—
|
|
|
$
|
779
|
|
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Owner occupied
|
|
$
|
2,287
|
|
|
$
|
2,287
|
|
|
$
|
70
|
|
|
$
|
3,688
|
|
|
$
|
356
|
|
|
$
|
118
|
|
|
$
|
238
|
|
Non-owner occupied
|
|
1,609
|
|
|
1,647
|
|
|
—
|
|
|
1,318
|
|
|
91
|
|
|
79
|
|
|
12
|
|
|||||||
Land development
|
|
3,440
|
|
|
6,111
|
|
|
—
|
|
|
3,898
|
|
|
107
|
|
|
—
|
|
|
107
|
|
|||||||
Construction
|
|
2,918
|
|
|
2,920
|
|
|
1,790
|
|
|
1,125
|
|
|
65
|
|
|
—
|
|
|
65
|
|
|||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
134
|
|
|
(133
|
)
|
|||||||
1-4 family
|
|
2,572
|
|
|
2,578
|
|
|
39
|
|
|
2,958
|
|
|
130
|
|
|
94
|
|
|
36
|
|
|||||||
Commercial and industrial
|
|
12,473
|
|
|
12,473
|
|
|
3,700
|
|
|
9,157
|
|
|
780
|
|
|
62
|
|
|
718
|
|
|||||||
Direct financing leases, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity and second mortgages
|
|
8
|
|
|
8
|
|
|
—
|
|
|
307
|
|
|
16
|
|
|
127
|
|
|
(111
|
)
|
|||||||
Other
|
|
604
|
|
|
1,270
|
|
|
—
|
|
|
529
|
|
|
71
|
|
|
—
|
|
|
71
|
|
|||||||
Grand total
|
|
$
|
25,911
|
|
|
$
|
29,294
|
|
|
$
|
5,599
|
|
|
$
|
22,986
|
|
|
$
|
1,617
|
|
|
$
|
614
|
|
|
$
|
1,003
|
|
(1)
|
Average recorded investment is calculated primarily using daily average balances.
|
|
|
As of and for the Three Months Ended March 31, 2017
|
||||||||||||||
|
|
Commercial
Real Estate
|
|
Commercial
and
Industrial
|
|
Consumer
and Other
|
|
Total
|
||||||||
|
|
(Dollars in Thousands)
|
||||||||||||||
Allowance for loan and lease losses:
|
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
|
$
|
12,384
|
|
|
$
|
7,970
|
|
|
$
|
558
|
|
|
$
|
20,912
|
|
Charge-offs
|
|
(67
|
)
|
|
(55
|
)
|
|
(87
|
)
|
|
(209
|
)
|
||||
Recoveries
|
|
104
|
|
|
246
|
|
|
41
|
|
|
391
|
|
||||
Provision
|
|
396
|
|
|
(218
|
)
|
|
394
|
|
|
572
|
|
||||
Ending balance
|
|
$
|
12,817
|
|
|
$
|
7,943
|
|
|
$
|
906
|
|
|
$
|
21,666
|
|
Ending balance: individually evaluated for impairment
|
|
$
|
1,821
|
|
|
$
|
4,010
|
|
|
$
|
327
|
|
|
$
|
6,158
|
|
Ending balance: collectively evaluated for impairment
|
|
$
|
10,996
|
|
|
$
|
3,933
|
|
|
$
|
579
|
|
|
$
|
15,508
|
|
Ending balance: loans acquired with deteriorated credit quality
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Loans and lease receivables:
|
|
|
|
|
|
|
|
|
||||||||
Ending balance, gross
|
|
$
|
967,093
|
|
|
$
|
488,108
|
|
|
$
|
27,096
|
|
|
$
|
1,482,297
|
|
Ending balance: individually evaluated for impairment
|
|
$
|
16,693
|
|
|
$
|
19,545
|
|
|
$
|
702
|
|
|
$
|
36,940
|
|
Ending balance: collectively evaluated for impairment
|
|
$
|
949,128
|
|
|
$
|
468,554
|
|
|
$
|
26,394
|
|
|
$
|
1,444,076
|
|
Ending balance: loans acquired with deteriorated credit quality
|
|
$
|
1,272
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
1,281
|
|
Allowance as % of gross loans and leases
|
|
1.33
|
%
|
|
1.63
|
%
|
|
3.34
|
%
|
|
1.46
|
%
|
|
|
As of and for the Year Ended December 31, 2016
|
||||||||||||||
|
|
Commercial
Real Estate
|
|
Commercial
and
Industrial
|
|
Consumer
and Other
|
|
Total
|
||||||||
|
|
(Dollars in Thousands)
|
||||||||||||||
Allowance for loan and lease losses:
|
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
|
$
|
11,220
|
|
|
$
|
4,387
|
|
|
$
|
709
|
|
|
$
|
16,316
|
|
Charge-offs
|
|
(1,194
|
)
|
|
(2,273
|
)
|
|
(127
|
)
|
|
(3,594
|
)
|
||||
Recoveries
|
|
274
|
|
|
91
|
|
|
7
|
|
|
372
|
|
||||
Provision
|
|
2,084
|
|
|
5,765
|
|
|
(31
|
)
|
|
7,818
|
|
||||
Ending balance
|
|
$
|
12,384
|
|
|
$
|
7,970
|
|
|
$
|
558
|
|
|
$
|
20,912
|
|
Ending balance: individually evaluated for impairment
|
|
$
|
1,899
|
|
|
$
|
3,700
|
|
|
$
|
—
|
|
|
$
|
5,599
|
|
Ending balance: collectively evaluated for impairment
|
|
$
|
10,485
|
|
|
$
|
4,270
|
|
|
$
|
558
|
|
|
$
|
15,313
|
|
Ending balance: loans acquired with deteriorated credit quality
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Loans and lease receivables:
|
|
|
|
|
|
|
|
|
||||||||
Ending balance, gross
|
|
$
|
945,874
|
|
|
$
|
481,249
|
|
|
$
|
24,741
|
|
|
$
|
1,451,864
|
|
Ending balance: individually evaluated for impairment
|
|
$
|
11,222
|
|
|
$
|
12,452
|
|
|
$
|
612
|
|
|
$
|
24,286
|
|
Ending balance: collectively evaluated for impairment
|
|
$
|
933,048
|
|
|
$
|
468,776
|
|
|
$
|
24,129
|
|
|
$
|
1,425,953
|
|
Ending balance: loans acquired with deteriorated credit quality
|
|
$
|
1,604
|
|
|
$
|
21
|
|
|
$
|
—
|
|
|
$
|
1,625
|
|
Allowance as % of gross loans and leases
|
|
1.31
|
%
|
|
1.66
|
%
|
|
2.26
|
%
|
|
1.44
|
%
|
|
|
March 31, 2017
|
|
December 31, 2016
|
||||
|
|
(In Thousands)
|
||||||
Accrued interest receivable
|
|
$
|
4,426
|
|
|
$
|
4,677
|
|
Net deferred tax asset
|
|
4,145
|
|
|
4,052
|
|
||
Investment in historic development entities
|
|
737
|
|
|
737
|
|
||
Investment in a CDE
|
|
6,974
|
|
|
7,106
|
|
||
Investment in limited partnerships
|
|
3,983
|
|
|
3,963
|
|
||
Investment in Trust II
|
|
315
|
|
|
315
|
|
||
Fair value of interest rate swaps
|
|
405
|
|
|
352
|
|
||
Prepaid expenses
|
|
3,312
|
|
|
3,074
|
|
||
Other assets
|
|
4,281
|
|
|
4,331
|
|
||
Total accrued interest receivable and other assets
|
|
$
|
28,578
|
|
|
$
|
28,607
|
|
|
|
March 31, 2017
|
|
December 31, 2016
|
||||||||||||||||||
|
|
Balance
|
|
Average
Balance
|
|
Average Rate
|
|
Balance
|
|
Average
Balance
|
|
Average Rate
|
||||||||||
|
|
(Dollars in Thousands)
|
||||||||||||||||||||
Non-interest-bearing transaction accounts
|
|
$
|
227,947
|
|
|
$
|
228,323
|
|
|
—
|
%
|
|
$
|
252,638
|
|
|
$
|
246,182
|
|
|
—
|
%
|
Interest-bearing transaction accounts
|
|
205,912
|
|
|
192,297
|
|
|
0.48
|
|
|
183,992
|
|
|
169,571
|
|
|
0.27
|
|
||||
Money market accounts
|
|
616,557
|
|
|
627,188
|
|
|
0.42
|
|
|
627,090
|
|
|
642,784
|
|
|
0.48
|
|
||||
Certificates of deposit
|
|
53,865
|
|
|
55,393
|
|
|
0.94
|
|
|
58,454
|
|
|
65,608
|
|
|
0.90
|
|
||||
Wholesale deposits
|
|
388,433
|
|
|
400,672
|
|
|
1.65
|
|
|
416,681
|
|
|
467,826
|
|
|
1.62
|
|
||||
Total deposits
|
|
$
|
1,492,714
|
|
|
$
|
1,503,873
|
|
|
0.71
|
|
|
$
|
1,538,855
|
|
|
$
|
1,591,971
|
|
|
0.74
|
|
|
|
March 31, 2017
|
|
December 31, 2016
|
||||||||||||||||||
|
|
Balance
|
|
Weighted Average
Balance
|
|
Weighted
Average Rate
|
|
Balance
|
|
Weighted Average
Balance
|
|
Weighted
Average Rate
|
||||||||||
|
|
(Dollars in Thousands)
|
||||||||||||||||||||
Federal funds purchased
|
|
$
|
—
|
|
|
$
|
244
|
|
|
1.15
|
%
|
|
$
|
—
|
|
|
$
|
178
|
|
|
0.92
|
%
|
FHLB advances
|
|
96,057
|
|
|
60,703
|
|
|
1.01
|
|
|
33,578
|
|
|
14,485
|
|
|
0.97
|
|
||||
Line of credit
|
|
1,010
|
|
|
1,010
|
|
|
3.54
|
|
|
1,010
|
|
|
2,079
|
|
|
3.26
|
|
||||
Other borrowings
|
|
2,262
|
|
|
2,164
|
|
|
8.26
|
|
|
2,590
|
|
|
1,739
|
|
|
7.64
|
|
||||
Subordinated notes payable
|
|
22,512
|
|
|
22,503
|
|
|
7.12
|
|
|
22,498
|
|
|
22,467
|
|
|
7.13
|
|
||||
Junior subordinated notes
|
|
10,008
|
|
|
10,006
|
|
|
10.97
|
|
|
10,004
|
|
|
9,997
|
|
|
11.07
|
|
||||
|
|
$
|
131,849
|
|
|
$
|
96,630
|
|
|
3.67
|
|
|
$
|
69,680
|
|
|
$
|
50,945
|
|
|
6.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term borrowings
|
|
$
|
78,067
|
|
|
|
|
|
|
$
|
20,588
|
|
|
|
|
|
||||||
Long-term borrowings
|
|
53,782
|
|
|
|
|
|
|
49,092
|
|
|
|
|
|
||||||||
|
|
$
|
131,849
|
|
|
|
|
|
|
$
|
69,680
|
|
|
|
|
|
|
|
As of and for the Three Months Ended March 31, 2017
|
|
As of and for the Year Ended December 31, 2016
|
||||
|
|
(In Thousands)
|
||||||
Balance at the beginning of the period
|
|
$
|
1,750
|
|
|
$
|
—
|
|
SBA recourse provision
|
|
6
|
|
|
2,068
|
|
||
Charge-offs, net
|
|
(91
|
)
|
|
(318
|
)
|
||
Balance at the end of the period
|
|
$
|
1,665
|
|
|
$
|
1,750
|
|
|
|
March 31, 2017
|
||||||||||||||
|
|
Fair Value Measurements Using
|
|
|
||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Securities available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Government agency obligations - government-sponsored enterprises
|
|
$
|
—
|
|
|
$
|
6,300
|
|
|
$
|
—
|
|
|
$
|
6,300
|
|
Municipal obligations
|
|
—
|
|
|
8,176
|
|
|
—
|
|
|
8,176
|
|
||||
Asset backed securities
|
|
—
|
|
|
1,050
|
|
|
—
|
|
|
1,050
|
|
||||
Collateralized mortgage obligations - government issued
|
|
—
|
|
|
27,987
|
|
|
—
|
|
|
27,987
|
|
||||
Collateralized mortgage obligations - government-sponsored enterprises
|
|
—
|
|
|
103,545
|
|
|
—
|
|
|
103,545
|
|
||||
Interest rate swaps
|
|
—
|
|
|
405
|
|
|
—
|
|
|
405
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
|
—
|
|
|
405
|
|
|
—
|
|
|
405
|
|
|
|
December 31, 2016
|
||||||||||||||
|
|
Fair Value Measurements Using
|
|
|
||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Securities available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Government agency obligations - government-sponsored enterprises
|
|
$
|
—
|
|
|
$
|
6,295
|
|
|
$
|
—
|
|
|
$
|
6,295
|
|
Municipal obligations
|
|
—
|
|
|
8,156
|
|
|
—
|
|
|
8,156
|
|
||||
Asset backed securities
|
|
—
|
|
|
1,081
|
|
|
—
|
|
|
1,081
|
|
||||
Collateralized mortgage obligations - government issued
|
|
—
|
|
|
31,213
|
|
|
—
|
|
|
31,213
|
|
||||
Collateralized mortgage obligations - government-sponsored enterprises
|
|
—
|
|
|
99,148
|
|
|
—
|
|
|
99,148
|
|
||||
Interest rate swaps
|
|
—
|
|
|
352
|
|
|
—
|
|
|
352
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
|
—
|
|
|
352
|
|
|
—
|
|
|
352
|
|
|
|
March 31, 2017
|
||||||||||||||
|
|
Fair Value Measurements Using
|
|
|
||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Impaired loans
|
|
$
|
—
|
|
|
$
|
13,994
|
|
|
$
|
2,016
|
|
|
$
|
16,010
|
|
Foreclosed properties
|
|
—
|
|
|
1,472
|
|
|
—
|
|
|
1,472
|
|
||||
Loan servicing rights
|
|
—
|
|
|
—
|
|
|
1,920
|
|
|
1,920
|
|
|
|
December 31, 2016
|
||||||||||||||
|
|
Fair Value Measurements Using
|
|
|
||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Impaired loans
|
|
$
|
—
|
|
|
$
|
12,268
|
|
|
$
|
1,097
|
|
|
$
|
13,365
|
|
Foreclosed properties
|
|
—
|
|
|
1,472
|
|
|
—
|
|
|
1,472
|
|
||||
Loan servicing rights
|
|
—
|
|
|
—
|
|
|
1,906
|
|
|
1,906
|
|
|
|
March 31, 2017
|
||||||||||||||||||
|
|
Carrying
Amount
|
|
Fair Value
|
||||||||||||||||
|
|
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
|
|
(In Thousands)
|
||||||||||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
60,899
|
|
|
$
|
60,899
|
|
|
$
|
47,394
|
|
|
$
|
13,505
|
|
|
$
|
—
|
|
Securities available-for-sale
|
|
147,058
|
|
|
147,058
|
|
|
—
|
|
|
147,058
|
|
|
—
|
|
|||||
Securities held-to-maturity
|
|
38,485
|
|
|
38,555
|
|
|
—
|
|
|
38,555
|
|
|
—
|
|
|||||
Loans held for sale
|
|
3,924
|
|
|
3,924
|
|
|
—
|
|
|
3,924
|
|
|
—
|
|
|||||
Loans and lease receivables, net
|
|
1,459,305
|
|
|
1,476,988
|
|
|
—
|
|
|
13,994
|
|
|
1,462,994
|
|
|||||
Bank-owned life insurance
|
|
39,358
|
|
|
39,358
|
|
|
—
|
|
|
39,358
|
|
|
—
|
|
|||||
Federal Home Loan Bank and Federal Reserve Bank stock
|
|
4,782
|
|
|
4,781
|
|
|
—
|
|
|
—
|
|
|
4,781
|
|
|||||
Accrued interest receivable
|
|
4,426
|
|
|
4,426
|
|
|
4,426
|
|
|
—
|
|
|
—
|
|
|||||
Interest rate swaps
|
|
405
|
|
|
405
|
|
|
—
|
|
|
405
|
|
|
—
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
|
1,492,714
|
|
|
1,493,233
|
|
|
1,050,416
|
|
|
442,817
|
|
|
—
|
|
|||||
Federal Home Loan Bank advances and other borrowings
|
|
121,841
|
|
|
123,552
|
|
|
—
|
|
|
123,552
|
|
|
—
|
|
|||||
Junior subordinated notes
|
|
10,008
|
|
|
8,972
|
|
|
—
|
|
|
—
|
|
|
8,972
|
|
|||||
Accrued interest payable
|
|
1,938
|
|
|
1,938
|
|
|
1,938
|
|
|
—
|
|
|
—
|
|
|||||
Interest rate swaps
|
|
405
|
|
|
405
|
|
|
—
|
|
|
405
|
|
|
—
|
|
|||||
Off-balance-sheet items:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Standby letters of credit
|
|
119
|
|
|
119
|
|
|
119
|
|
|
—
|
|
|
—
|
|
|
|
December 31, 2016
|
||||||||||||||||||
|
|
Carrying
Amount
|
|
Fair Value
|
||||||||||||||||
|
|
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
|
|
(In Thousands)
|
||||||||||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
77,517
|
|
|
$
|
77,517
|
|
|
$
|
55,622
|
|
|
$
|
21,895
|
|
|
$
|
—
|
|
Securities available-for-sale
|
|
145,893
|
|
|
145,893
|
|
|
—
|
|
|
145,893
|
|
|
—
|
|
|||||
Securities held-to-maturity
|
|
38,612
|
|
|
38,520
|
|
|
—
|
|
|
38,520
|
|
|
—
|
|
|||||
Loans held for sale
|
|
1,111
|
|
|
1,111
|
|
|
—
|
|
|
1,111
|
|
|
—
|
|
|||||
Loans and lease receivables, net
|
|
1,429,763
|
|
|
1,447,044
|
|
|
—
|
|
|
12,268
|
|
|
1,434,776
|
|
|||||
Bank-owned life insurance
|
|
39,048
|
|
|
39,048
|
|
|
—
|
|
|
39,048
|
|
|
—
|
|
|||||
Federal Home Loan Bank and Federal Reserve Bank stock
|
|
2,131
|
|
|
2,131
|
|
|
—
|
|
|
2,131
|
|
|
—
|
|
|||||
Accrued interest receivable
|
|
4,677
|
|
|
4,677
|
|
|
4,677
|
|
|
—
|
|
|
—
|
|
|||||
Interest rate swaps
|
|
352
|
|
|
352
|
|
|
—
|
|
|
352
|
|
|
—
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
|
1,538,855
|
|
|
1,539,413
|
|
|
1,063,720
|
|
|
475,693
|
|
|
—
|
|
|||||
Federal Home Loan Bank advances and other borrowings
|
|
59,676
|
|
|
60,893
|
|
|
—
|
|
|
60,893
|
|
|
—
|
|
|||||
Junior subordinated notes
|
|
10,004
|
|
|
9,072
|
|
|
—
|
|
|
—
|
|
|
9,072
|
|
|||||
Accrued interest payable
|
|
1,765
|
|
|
1,765
|
|
|
1,765
|
|
|
—
|
|
|
—
|
|
|||||
Interest rate swaps
|
|
352
|
|
|
352
|
|
|
—
|
|
|
352
|
|
|
—
|
|
|||||
Off-balance-sheet items:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Standby letters of credit
|
|
58
|
|
|
58
|
|
|
—
|
|
|
—
|
|
|
58
|
|
|
|
Interest Rate Swap Contracts
|
||||||||||
|
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||||
|
|
Balance Sheet Location
|
|
Fair Value
|
|
Balance Sheet Location
|
|
Fair Value
|
||||
|
|
(In Thousands)
|
||||||||||
Derivatives not designated as hedging instruments
|
|
|
|
|
|
|
|
|
||||
March 31, 2017
|
|
Accrued interest receivable and other assets
|
|
$
|
405
|
|
|
Accrued interest payable and other liabilities
|
|
$
|
405
|
|
December 31, 2016
|
|
Accrued interest receivable and other assets
|
|
$
|
352
|
|
|
Accrued interest payable and other liabilities
|
|
$
|
352
|
|
|
|
Actual
|
|
Minimum Required for Capital Adequacy Purposes
|
|
For Capital Adequacy Purposes Plus Capital Conservation Buffer
|
|
Minimum Required to Be Well
Capitalized Under Prompt Corrective Action Requirements |
||||||||||||||||||||
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
||||||||||||
|
|
(Dollars in Thousands)
|
||||||||||||||||||||||||||
As of March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total capital
(to risk-weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated
|
|
$
|
206,010
|
|
|
11.55
|
%
|
|
$
|
142,712
|
|
|
8.00
|
%
|
|
165,011
|
|
|
9.250
|
%
|
|
N/A
|
|
|
N/A
|
|
||
First Business Bank
|
|
148,557
|
|
|
11.35
|
|
|
104,691
|
|
|
8.00
|
|
|
121,049
|
|
|
9.250
|
|
|
$
|
130,863
|
|
|
10.00
|
%
|
|||
First Business Bank — Milwaukee
|
|
24,865
|
|
|
10.51
|
|
|
18,920
|
|
|
8.00
|
|
|
21,876
|
|
|
9.250
|
|
|
23,650
|
|
|
10.00
|
|
||||
Alterra Bank
|
|
31,562
|
|
|
13.23
|
|
|
19,079
|
|
|
8.00
|
|
|
22,060
|
|
|
9.250
|
|
|
23,849
|
|
|
10.00
|
|
||||
Tier 1 capital
(to risk-weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated
|
|
$
|
163,413
|
|
|
9.16
|
%
|
|
$
|
107,034
|
|
|
6.00
|
%
|
|
$
|
129,333
|
|
|
7.250
|
%
|
|
N/A
|
|
|
N/A
|
|
|
First Business Bank
|
|
134,629
|
|
|
10.29
|
|
|
78,518
|
|
|
6.00
|
|
|
94,876
|
|
|
7.250
|
|
|
$
|
104,691
|
|
|
8.00
|
%
|
|||
First Business Bank — Milwaukee
|
|
22,787
|
|
|
9.64
|
|
|
14,190
|
|
|
6.00
|
|
|
17,146
|
|
|
7.250
|
|
|
18,920
|
|
|
8.00
|
|
||||
Alterra Bank
|
|
28,548
|
|
|
11.97
|
|
|
14,309
|
|
|
6.00
|
|
|
17,290
|
|
|
7.250
|
|
|
19,079
|
|
|
8.00
|
|
||||
Common equity tier 1 capital
(to risk-weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated
|
|
$
|
153,405
|
|
|
8.60
|
%
|
|
$
|
80,276
|
|
|
4.50
|
%
|
|
$
|
102,574
|
|
|
5.750
|
%
|
|
N/A
|
|
|
N/A
|
|
|
First Business Bank
|
|
134,629
|
|
|
10.29
|
|
|
58,888
|
|
|
4.50
|
|
|
75,246
|
|
|
5.750
|
|
|
$
|
85,061
|
|
|
6.50
|
%
|
|||
First Business Bank — Milwaukee
|
|
22,787
|
|
|
9.64
|
|
|
10,642
|
|
|
4.50
|
|
|
13,599
|
|
|
5.750
|
|
|
15,372
|
|
|
6.50
|
|
||||
Alterra Bank
|
|
28,548
|
|
|
11.97
|
|
|
10,732
|
|
|
4.50
|
|
|
13,713
|
|
|
5.750
|
|
|
15,502
|
|
|
6.50
|
|
||||
Tier 1 leverage capital
(to adjusted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated
|
|
$
|
163,413
|
|
|
9.26
|
%
|
|
$
|
70,575
|
|
|
4.00
|
%
|
|
$
|
70,575
|
|
|
4.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
First Business Bank
|
|
134,629
|
|
|
10.38
|
|
|
51,862
|
|
|
4.00
|
|
|
51,862
|
|
|
4.00
|
|
|
$
|
64,827
|
|
|
5.00
|
%
|
|||
First Business Bank — Milwaukee
|
|
22,787
|
|
|
8.93
|
|
|
10,206
|
|
|
4.00
|
|
|
10,206
|
|
|
4.00
|
|
|
12,757
|
|
|
5.00
|
|
||||
Alterra Bank
|
|
28,548
|
|
|
11.55
|
|
|
9,888
|
|
|
4.00
|
|
|
9,888
|
|
|
4.00
|
|
|
12,360
|
|
|
5.00
|
|
|
|
Actual
|
|
Minimum Required for Capital Adequacy Purposes
|
|
For Capital Adequacy Purposes Plus Capital Conservation Buffer
|
|
Minimum Required to Be Well
Capitalized Under Prompt Corrective Action Requirements |
||||||||||||||||||||
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
||||||||||||
|
|
(Dollars in Thousands)
|
||||||||||||||||||||||||||
As of December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total capital
(to risk-weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated
|
|
$
|
204,117
|
|
|
11.74
|
%
|
|
$
|
139,101
|
|
|
8.00
|
%
|
|
$
|
149,968
|
|
|
8.625
|
%
|
|
N/A
|
|
|
N/A
|
|
|
First Business Bank
|
|
147,811
|
|
|
11.55
|
|
|
102,362
|
|
|
8.00
|
|
|
110,360
|
|
|
8.625
|
|
|
$
|
127,953
|
|
|
10.00
|
%
|
|||
First Business Bank — Milwaukee
|
|
24,347
|
|
|
11.02
|
|
|
17,680
|
|
|
8.00
|
|
|
19,062
|
|
|
8.625
|
|
|
22,101
|
|
|
10.00
|
|
||||
Alterra Bank
|
|
31,699
|
|
|
13.27
|
|
|
19,106
|
|
|
8.00
|
|
|
20,599
|
|
|
8.625
|
|
|
23,882
|
|
|
10.00
|
|
||||
Tier 1 capital
(to risk-weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated
|
|
$
|
160,964
|
|
|
9.26
|
%
|
|
$
|
104,326
|
|
|
6.00
|
%
|
|
$
|
115,193
|
|
|
6.625
|
%
|
|
N/A
|
|
|
N/A
|
|
|
First Business Bank
|
|
134,208
|
|
|
10.49
|
|
|
76,772
|
|
|
6.00
|
|
|
84,769
|
|
|
6.625
|
|
|
$
|
102,362
|
|
|
8.00
|
%
|
|||
First Business Bank — Milwaukee
|
|
22,323
|
|
|
10.10
|
|
|
13,260
|
|
|
6.00
|
|
|
14,642
|
|
|
6.625
|
|
|
17,680
|
|
|
8.00
|
|
||||
Alterra Bank
|
|
28,685
|
|
|
12.01
|
|
|
14,329
|
|
|
6.00
|
|
|
15,822
|
|
|
6.625
|
|
|
19,106
|
|
|
8.00
|
|
||||
Common equity tier 1 capital
(to risk-weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated
|
|
$
|
150,960
|
|
|
8.68
|
%
|
|
$
|
78,244
|
|
|
4.50
|
%
|
|
$
|
89,111
|
|
|
5.125
|
%
|
|
N/A
|
|
|
N/A
|
|
|
First Business Bank
|
|
134,208
|
|
|
10.49
|
|
|
57,579
|
|
|
4.50
|
|
|
65,576
|
|
|
5.125
|
|
|
$
|
83,170
|
|
|
6.50
|
%
|
|||
First Business Bank — Milwaukee
|
|
22,323
|
|
|
10.10
|
|
|
9,945
|
|
|
4.50
|
|
|
11,327
|
|
|
5.125
|
|
|
14,365
|
|
|
6.50
|
|
||||
Alterra Bank
|
|
28,685
|
|
|
12.01
|
|
|
10,747
|
|
|
4.50
|
|
|
12,240
|
|
|
5.125
|
|
|
15,524
|
|
|
6.50
|
|
||||
Tier 1 leverage capital
(to adjusted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated
|
|
$
|
160,964
|
|
|
9.07
|
%
|
|
$
|
70,985
|
|
|
4.00
|
%
|
|
$
|
70,985
|
|
|
4.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
First Business Bank
|
|
134,208
|
|
|
10.40
|
|
|
51,600
|
|
|
4.00
|
|
|
51,600
|
|
|
4.00
|
|
|
$
|
64,500
|
|
|
5.00
|
%
|
|||
First Business Bank — Milwaukee
|
|
22,323
|
|
|
9.15
|
|
|
9,758
|
|
|
4.00
|
|
|
9,758
|
|
|
4.00
|
|
|
12,198
|
|
|
5.00
|
|
||||
Alterra Bank
|
|
28,685
|
|
|
10.58
|
|
|
10,842
|
|
|
4.00
|
|
|
10,842
|
|
|
4.00
|
|
|
13,552
|
|
|
5.00
|
|
•
|
Competitive pressures among depository and other financial institutions nationally and in our markets.
|
•
|
Adverse changes in the economy or business conditions, either nationally or in our markets.
|
•
|
Increases in defaults by borrowers and other delinquencies.
|
•
|
Our ability to manage growth effectively, including the successful expansion of our client support, administrative infrastructure and internal management systems.
|
•
|
Fluctuations in interest rates and market prices.
|
•
|
The consequences of continued bank acquisitions and mergers in our markets, resulting in fewer but much larger and financially stronger competitors.
|
•
|
Changes in legislative or regulatory requirements applicable to us and our subsidiaries.
|
•
|
Changes in tax requirements, including tax rate changes, new tax laws and revised tax law interpretations.
|
•
|
Fraud, including client and system failure or breaches of our network security, including with respect to our internet banking activities.
|
•
|
Failure to comply with the applicable SBA regulations in order to maintain the eligibility of the guaranteed portion of SBA loans.
|
•
|
Total assets increased to
$1.801 billion
as of
March 31, 2017
compared to
$1.781 billion
as of
December 31, 2016
.
|
•
|
Net income for the three months ended
March 31, 2017
was
$3.4 million
compared to net income of
$4.6 million
for the three months ended
March 31, 2016
.
|
•
|
Diluted earnings per common share for the three months ended
March 31, 2017
were
$0.39
compared to diluted earnings per common share of
$0.52
for the three months ended
March 31, 2016
.
|
•
|
The Corporation increased its quarterly cash dividend declared in January 8.3% to $0.13 per share for the three months ended March 31, 2017, compared to $0.12 per share for the three months ended March 31, 2016.
|
•
|
Annualized return on average assets (“ROAA”) and return on average equity (“ROAE”) were
0.77%
and
8.31%
, respectively, for the three month period ended
March 31, 2017
, compared to
1.00%
and
11.70%
, respectively, for the same time period in
2016
.
|
•
|
Trust and investment services fee income was
$1.6 million
for the three months ended March 31, 2017, compared to
$1.3 million
for the three months ended March 31, 2016.
|
•
|
Top line revenue, the sum of net interest income and non-interest income, decreased
5.9%
to
$19.0 million
for the three months ended
March 31, 2017
compared to
$20.1 million
for the three months ended
March 31, 2016
.
|
•
|
Net interest margin
decreased
by
eight
basis points to
3.51%
for the three months ended
March 31, 2017
compared to
3.59%
for the three months ended
March 31, 2016
.
|
•
|
Our efficiency ratio was
70.85%
for the three months ended
March 31, 2017
, compared to
62.44%
for the three months ended
March 31, 2016
.
|
•
|
Our provision for loan and lease losses was
$572,000
for the three months ended
March 31, 2017
compared to
$525,000
for the same period in the prior year.
|
•
|
Net recoveries of
$182,000
represented an annualized
0.05%
of average loans and leases for the three months ended
March 31, 2017
compared to annualized net charge-offs of
0.04%
for the three months ended
March 31, 2016
.
|
•
|
Gross loans and leases receivable increased
$30.3 million
, or
8.4%
annualized, to
$1.481 billion
at
March 31, 2017
from
$1.451 billion
at
December 31, 2016
.
|
•
|
Allowance for loan and lease losses as a percentage of gross loans and leases was
1.46%
at
March 31, 2017
compared to
1.44%
at
December 31, 2016
.
|
•
|
Non-performing assets as a percentage of total assets was
2.17%
at
March 31, 2017
compared to
1.50%
at
December 31, 2016
.
|
•
|
Non-accrual loans
increased
by
$12.3 million
, or
48.9%
, to
$37.5 million
at
March 31, 2017
from
$25.2 million
at
December 31, 2016
.
|
|
|
For the Three Months Ended March 31,
|
|||||||||
|
|
2017
|
|
2016
|
|
Change
|
|||||
|
|
(Dollars in Thousands)
|
|||||||||
Net interest income
|
|
$
|
14,888
|
|
|
$
|
15,539
|
|
|
(4.2
|
)%
|
Non-interest income
|
|
4,063
|
|
|
4,594
|
|
|
(11.6
|
)
|
||
Total top line revenue
|
|
$
|
18,951
|
|
|
$
|
20,133
|
|
|
(5.9
|
)
|
|
|
For the Three Months Ended March 31,
|
|
Change from Prior Year
|
|||||||||||
|
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
|||||||
|
|
(Dollars in Thousands)
|
|||||||||||||
Total non-interest expense
|
|
$
|
13,560
|
|
|
$
|
12,699
|
|
|
$
|
861
|
|
|
6.8
|
%
|
Less:
|
|
|
|
|
|
|
|
|
|||||||
Amortization of other intangible assets
|
|
14
|
|
|
16
|
|
|
(2
|
)
|
|
(12.5
|
)
|
|||
SBA recourse provision
|
|
6
|
|
|
—
|
|
|
6
|
|
|
NM
|
|
|||
Impairment of tax credit investments
|
|
113
|
|
|
112
|
|
|
1
|
|
|
0.9
|
|
|||
Total adjusted operating expense
|
|
$
|
13,427
|
|
|
$
|
12,571
|
|
|
$
|
856
|
|
|
6.8
|
|
Net interest income
|
|
$
|
14,888
|
|
|
$
|
15,539
|
|
|
$
|
(651
|
)
|
|
(4.2
|
)
|
Total non-interest income
|
|
4,063
|
|
|
4,594
|
|
|
(531
|
)
|
|
(11.6
|
)
|
|||
Total operating revenue
|
|
$
|
18,951
|
|
|
$
|
20,133
|
|
|
$
|
(1,182
|
)
|
|
(5.9
|
)
|
Efficiency ratio
|
|
70.85
|
%
|
|
62.44
|
%
|
|
|
|
|
|
|
|
Increase (Decrease) for the Three Months Ended March 31,
|
||||||||||
|
|
2017 Compared to 2016
|
||||||||||
|
|
Rate
|
|
Volume
|
|
Net
|
||||||
|
|
(In Thousands)
|
||||||||||
Interest-earning assets
|
|
|
|
|
|
|
||||||
Commercial real estate and other mortgage loans
(1)
|
|
$
|
(677
|
)
|
|
$
|
265
|
|
|
$
|
(412
|
)
|
Commercial and industrial loans
(1)
|
|
(207
|
)
|
|
(280
|
)
|
|
(487
|
)
|
|||
Direct financing leases
|
|
(12
|
)
|
|
(8
|
)
|
|
(20
|
)
|
|||
Consumer and other loans
|
|
(11
|
)
|
|
8
|
|
|
(3
|
)
|
|||
Total loans and leases receivable
|
|
(907
|
)
|
|
(15
|
)
|
|
(922
|
)
|
|||
Mortgage-related securities
|
|
15
|
|
|
4
|
|
|
19
|
|
|||
Other investment securities
|
|
8
|
|
|
30
|
|
|
38
|
|
|||
FHLB and FRB Stock
|
|
1
|
|
|
2
|
|
|
3
|
|
|||
Short-term investments
|
|
63
|
|
|
(97
|
)
|
|
(34
|
)
|
|||
Total net change in income on interest-earning assets
|
|
(820
|
)
|
|
(76
|
)
|
|
(896
|
)
|
|||
Interest-bearing liabilities
|
|
|
|
|
|
|
||||||
Transaction accounts
|
|
125
|
|
|
19
|
|
|
144
|
|
|||
Money market accounts
|
|
(144
|
)
|
|
(24
|
)
|
|
(168
|
)
|
|||
Certificates of deposit
|
|
21
|
|
|
(40
|
)
|
|
(19
|
)
|
|||
Wholesale deposits
|
|
59
|
|
|
(396
|
)
|
|
(337
|
)
|
|||
Total deposits
|
|
61
|
|
|
(441
|
)
|
|
(380
|
)
|
|||
FHLB advances
|
|
(3
|
)
|
|
138
|
|
|
135
|
|
|||
Other borrowings
|
|
21
|
|
|
(18
|
)
|
|
3
|
|
|||
Junior subordinated notes
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
|||
Total net change in expense on interest-bearing liabilities
|
|
76
|
|
|
(321
|
)
|
|
(245
|
)
|
|||
Net change in net interest income
|
|
$
|
(896
|
)
|
|
$
|
245
|
|
|
$
|
(651
|
)
|
(1)
|
Includes loans held for sale.
|
|
|
For the Three Months Ended March 31,
|
||||||||||||||||||||
|
|
2017
|
|
2016
|
||||||||||||||||||
|
|
Average
Balance |
|
Interest
|
|
Average
Yield/Rate (4) |
|
Average
Balance |
|
Interest
|
|
Average
Yield/Rate (4) |
||||||||||
|
|
(Dollars in Thousands)
|
||||||||||||||||||||
Interest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate and other mortgage loans
(1)
|
|
$
|
946,110
|
|
|
$
|
10,318
|
|
|
4.36
|
%
|
|
$
|
922,859
|
|
|
$
|
10,730
|
|
|
4.65
|
%
|
Commercial and industrial loans
(1)
|
|
451,552
|
|
|
6,595
|
|
|
5.84
|
|
|
470,503
|
|
|
7,082
|
|
|
6.02
|
|
||||
Direct financing leases
(1)
|
|
30,123
|
|
|
323
|
|
|
4.29
|
|
|
30,845
|
|
|
343
|
|
|
4.45
|
|
||||
Consumer and other loans
(1)
|
|
28,202
|
|
|
286
|
|
|
4.06
|
|
|
27,427
|
|
|
289
|
|
|
4.21
|
|
||||
Total loans and leases receivable
(1)
|
|
1,455,987
|
|
|
17,522
|
|
|
4.81
|
|
|
1,451,634
|
|
|
18,444
|
|
|
5.08
|
|
||||
Mortgage-related securities
(2)
|
|
145,804
|
|
|
618
|
|
|
1.70
|
|
|
144,899
|
|
|
599
|
|
|
1.65
|
|
||||
Other investment securities
(3)
|
|
38,554
|
|
|
161
|
|
|
1.67
|
|
|
31,326
|
|
|
123
|
|
|
1.57
|
|
||||
FHLB and FRB stock
|
|
3,150
|
|
|
24
|
|
|
3.05
|
|
|
2,802
|
|
|
21
|
|
|
2.92
|
|
||||
Short-term investments
|
|
51,136
|
|
|
122
|
|
|
0.95
|
|
|
101,420
|
|
|
156
|
|
|
0.62
|
|
||||
Total interest-earning assets
|
|
1,694,631
|
|
|
18,447
|
|
|
4.35
|
|
|
1,732,081
|
|
|
19,343
|
|
|
4.47
|
|
||||
Non-interest-earning assets
|
|
80,254
|
|
|
|
|
|
|
88,361
|
|
|
|
|
|
||||||||
Total assets
|
|
$
|
1,774,885
|
|
|
|
|
|
|
$
|
1,820,442
|
|
|
|
|
|
||||||
Interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Transaction accounts
|
|
$
|
192,297
|
|
|
232
|
|
|
0.48
|
|
|
$
|
162,793
|
|
|
88
|
|
|
0.22
|
|
||
Money market accounts
|
|
627,188
|
|
|
660
|
|
|
0.42
|
|
|
646,362
|
|
|
828
|
|
|
0.51
|
|
||||
Certificates of deposit
|
|
55,393
|
|
|
132
|
|
|
0.95
|
|
|
73,163
|
|
|
151
|
|
|
0.83
|
|
||||
Wholesale deposits
|
|
400,672
|
|
|
1,649
|
|
|
1.65
|
|
|
497,274
|
|
|
1,986
|
|
|
1.60
|
|
||||
Total interest-bearing deposits
|
|
1,275,550
|
|
|
2,673
|
|
|
0.84
|
|
|
1,379,592
|
|
|
3,053
|
|
|
0.89
|
|
||||
FHLB advances
|
|
60,703
|
|
|
154
|
|
|
1.01
|
|
|
7,537
|
|
|
19
|
|
|
1.03
|
|
||||
Other borrowings
|
|
25,921
|
|
|
458
|
|
|
7.07
|
|
|
27,006
|
|
|
455
|
|
|
6.74
|
|
||||
Junior subordinated notes
|
|
10,006
|
|
|
274
|
|
|
10.97
|
|
|
9,991
|
|
|
277
|
|
|
11.09
|
|
||||
Total interest-bearing liabilities
|
|
1,372,180
|
|
|
3,559
|
|
|
1.04
|
|
|
1,424,126
|
|
|
3,804
|
|
|
1.07
|
|
||||
Non-interest-bearing demand deposit accounts
|
|
228,015
|
|
|
|
|
|
|
228,294
|
|
|
|
|
|
||||||||
Other non-interest-bearing liabilities
|
|
11,223
|
|
|
|
|
|
|
12,337
|
|
|
|
|
|
||||||||
Total liabilities
|
|
1,611,418
|
|
|
|
|
|
|
1,664,757
|
|
|
|
|
|
||||||||
Stockholders’ equity
|
|
163,467
|
|
|
|
|
|
|
155,685
|
|
|
|
|
|
||||||||
Total liabilities and stockholders’ equity
|
|
$
|
1,774,885
|
|
|
|
|
|
|
$
|
1,820,442
|
|
|
|
|
|
||||||
Net interest income
|
|
|
|
$
|
14,888
|
|
|
|
|
|
|
$
|
15,539
|
|
|
|
||||||
Interest rate spread
|
|
|
|
|
|
3.31
|
%
|
|
|
|
|
|
3.40
|
%
|
||||||||
Net interest-earning assets
|
|
$
|
322,451
|
|
|
|
|
|
|
$
|
307,955
|
|
|
|
|
|
||||||
Net interest margin
|
|
|
|
|
|
3.51
|
%
|
|
|
|
|
|
3.59
|
%
|
||||||||
Average interest-earning assets to average interest-bearing liabilities
|
|
123.50
|
%
|
|
|
|
|
|
121.62
|
%
|
|
|
|
|
||||||||
Return on average assets
(4)
|
|
0.77
|
|
|
|
|
|
|
1.00
|
|
|
|
|
|
||||||||
Return on average equity
(4)
|
|
8.31
|
|
|
|
|
|
|
11.70
|
|
|
|
|
|
||||||||
Average equity to average assets
|
|
9.21
|
|
|
|
|
|
|
8.55
|
|
|
|
|
|
||||||||
Non-interest expense to average assets
(4)
|
|
3.06
|
|
|
|
|
|
|
2.79
|
|
|
|
|
|
(1)
|
The average balances of loans and leases include non-performing loans and leases and loans held for sale. Interest income related to non-performing loans and leases is recognized when collected. Interest income includes net loan fees collected in lieu of interest.
|
(2)
|
Includes amortized cost basis of assets available-for-sale and held-to-maturity.
|
(3)
|
Yields on tax-exempt municipal obligations are not presented on a tax-equivalent basis in this table.
|
(4)
|
Represents annualized yields/rates.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended March 31,
|
|
Change From Prior Year
|
|||||||||||
|
2017
|
|
2016
|
|
$ Change 2017
|
|
% Change 2017
|
|||||||
|
(In Thousands)
|
|||||||||||||
Trust and investment services fee income
|
$
|
1,629
|
|
|
$
|
1,273
|
|
|
$
|
356
|
|
|
28.0
|
%
|
Gain on sale of SBA loans
|
360
|
|
|
1,376
|
|
|
(1,016
|
)
|
|
(73.8
|
)
|
|||
Gain on sale of residential mortgage loans
|
11
|
|
|
145
|
|
|
(134
|
)
|
|
(92.4
|
)
|
|||
Service charges on deposits
|
765
|
|
|
742
|
|
|
23
|
|
|
3.1
|
|
|||
Loan fees
|
458
|
|
|
609
|
|
|
(151
|
)
|
|
(24.8
|
)
|
|||
Increase in cash surrender value of bank-owned life insurance
|
311
|
|
|
243
|
|
|
68
|
|
|
28.0
|
|
|||
Other non-interest income
|
529
|
|
|
206
|
|
|
323
|
|
|
156.8
|
|
|||
Total non-interest income
|
$
|
4,063
|
|
|
$
|
4,594
|
|
|
$
|
(531
|
)
|
|
(11.6
|
)
|
Fee income ratio
(1)
|
21.4
|
%
|
|
22.8
|
%
|
|
|
|
|
|
For the Three Months Ended March 31,
|
|
Change From Prior Year
|
|||||||||||
|
2017
|
|
2016
|
|
$ Change 2017
|
|
% Change 2017
|
|||||||
|
(Dollars in Thousands)
|
|||||||||||||
Compensation
|
8,683
|
|
|
8,370
|
|
|
$
|
313
|
|
|
3.7
|
%
|
||
Occupancy
|
475
|
|
|
508
|
|
|
(33
|
)
|
|
(6.5
|
)
|
|||
Professional fees
|
1,010
|
|
|
861
|
|
|
149
|
|
|
17.3
|
|
|||
Data processing
|
584
|
|
|
651
|
|
|
(67
|
)
|
|
(10.3
|
)
|
|||
Marketing
|
370
|
|
|
734
|
|
|
(364
|
)
|
|
(49.6
|
)
|
|||
Equipment
|
283
|
|
|
280
|
|
|
3
|
|
|
1.1
|
|
|||
Computer software
|
683
|
|
|
494
|
|
|
189
|
|
|
38.3
|
|
|||
FDIC insurance
|
380
|
|
|
291
|
|
|
89
|
|
|
30.6
|
|
|||
Collateral liquidation costs
|
92
|
|
|
47
|
|
|
45
|
|
|
95.7
|
|
|||
Impairment on tax credit investments
|
113
|
|
|
112
|
|
|
1
|
|
|
0.9
|
|
|||
SBA recourse provision
|
6
|
|
|
—
|
|
|
6
|
|
|
NM
|
|
|||
Other non-interest expense
|
881
|
|
|
351
|
|
|
530
|
|
|
151.0
|
|
|||
Total non-interest expense
|
$
|
13,560
|
|
|
$
|
12,699
|
|
|
$
|
861
|
|
|
6.8
|
|
Compensation expense to total non-interest expense
|
64.0
|
%
|
|
65.9
|
%
|
|
|
|
|
|||||
Full-time equivalent employees
|
258
|
|
|
255
|
|
|
|
|
|
|
|
March 31,
2017 |
|
December 31,
2016 |
||||
|
|
(Dollars in Thousands)
|
||||||
Non-accrual loans and leases
|
|
|
|
|
||||
Commercial real estate:
|
|
|
|
|
||||
Commercial real estate - owner occupied
|
|
$
|
5,433
|
|
|
$
|
2,223
|
|
Commercial real estate - non-owner occupied
|
|
1,979
|
|
|
1,609
|
|
||
Land development
|
|
3,355
|
|
|
3,440
|
|
||
Construction
|
|
4,602
|
|
|
2,918
|
|
||
Multi-family
|
|
—
|
|
|
—
|
|
||
1-4 family
|
|
1,911
|
|
|
1,937
|
|
||
Total non-accrual commercial real estate
|
|
17,280
|
|
|
12,127
|
|
||
Commercial and industrial
|
|
19,545
|
|
|
12,463
|
|
||
Direct financing leases, net
|
|
—
|
|
|
—
|
|
||
Consumer and other:
|
|
|
|
|
||||
Home equity and second mortgages
|
|
—
|
|
|
—
|
|
||
Other
|
|
694
|
|
|
604
|
|
||
Total non-accrual consumer and other loans
|
|
694
|
|
|
604
|
|
||
Total non-accrual loans and leases
|
|
37,519
|
|
|
25,194
|
|
||
Foreclosed properties, net
|
|
1,472
|
|
|
1,472
|
|
||
Total non-performing assets
|
|
38,991
|
|
|
26,666
|
|
||
Performing troubled debt restructurings
|
|
702
|
|
|
717
|
|
||
Total impaired assets
|
|
$
|
39,693
|
|
|
$
|
27,383
|
|
|
|
|
|
|
||||
Total non-accrual loans and leases to gross loans and leases
|
|
2.53
|
%
|
|
1.74
|
%
|
||
Total non-performing assets to gross loans and leases plus foreclosed properties, net
|
|
2.63
|
|
|
1.83
|
|
||
Total non-performing assets to total assets
|
|
2.17
|
|
|
1.50
|
|
||
Allowance for loan and lease losses to gross loans and leases
|
|
1.46
|
|
|
1.44
|
|
||
Allowance for loan and lease losses to non-accrual loans and leases
|
|
57.75
|
|
|
83.00
|
|
|
|
As of and for the Three Months Ended March 31,
|
|
As of and for the
Year Ended December 31,
|
||||||||
|
|
2017
|
|
2016
|
|
2016
|
||||||
|
|
(In Thousands)
|
||||||||||
Impaired loans and leases with no impairment reserves required
|
|
$
|
22,503
|
|
|
$
|
11,663
|
|
|
$
|
11,345
|
|
Impaired loans and leases with impairment reserves required
|
|
15,718
|
|
|
7,826
|
|
|
14,566
|
|
|||
Total impaired loans and leases
|
|
38,221
|
|
|
19,489
|
|
|
25,911
|
|
|||
Less:
|
|
|
|
|
|
|
||||||
Impairment reserve (included in allowance for loan and lease losses)
|
|
6,158
|
|
|
897
|
|
|
5,599
|
|
|||
Net impaired loans and leases
|
|
$
|
32,063
|
|
|
$
|
18,592
|
|
|
$
|
20,312
|
|
Average impaired loans and leases
|
|
$
|
27,879
|
|
|
$
|
20,649
|
|
|
$
|
22,986
|
|
Foregone interest income attributable to impaired loans and leases
|
|
$
|
712
|
|
|
$
|
311
|
|
|
$
|
1,617
|
|
Less: Interest income recognized on impaired loans and leases
|
|
—
|
|
|
152
|
|
|
614
|
|
|||
Net foregone interest income on impaired loans and leases
|
|
$
|
712
|
|
|
$
|
159
|
|
|
$
|
1,003
|
|
|
|
As of and for the Three Months Ended March 31,
|
||||||
|
|
2017
|
|
2016
|
||||
|
|
(Dollars in Thousands)
|
||||||
Allowance at beginning of period
|
|
$
|
20,912
|
|
|
$
|
16,316
|
|
Charge-offs:
|
|
|
|
|
||||
Commercial real estate:
|
|
|
|
|
||||
Commercial real estate — owner occupied
|
|
(9
|
)
|
|
(41
|
)
|
||
Commercial real estate — non-owner occupied
|
|
(58
|
)
|
|
—
|
|
||
Construction and land development
|
|
—
|
|
|
—
|
|
||
Multi-family
|
|
—
|
|
|
—
|
|
||
1-4 family
|
|
—
|
|
|
—
|
|
||
Commercial and industrial
|
|
(55
|
)
|
|
(196
|
)
|
||
Direct financing leases
|
|
—
|
|
|
—
|
|
||
Consumer and other:
|
|
|
|
|
||||
Home equity and second mortgages
|
|
—
|
|
|
—
|
|
||
Other
|
|
(87
|
)
|
|
(7
|
)
|
||
Total charge-offs
|
|
(209
|
)
|
|
(244
|
)
|
||
Recoveries:
|
|
|
|
|
||||
Commercial real estate:
|
|
|
|
|
||||
Commercial real estate — owner occupied
|
|
—
|
|
|
—
|
|
||
Commercial real estate — non-owner occupied
|
|
1
|
|
|
72
|
|
||
Construction and land development
|
|
101
|
|
|
—
|
|
||
Multi-family
|
|
—
|
|
|
—
|
|
||
1-4 family
|
|
2
|
|
|
12
|
|
||
Commercial and industrial
|
|
246
|
|
|
—
|
|
||
Direct financing leases
|
|
—
|
|
|
—
|
|
||
Consumer and other:
|
|
|
|
|
||||
Home equity and second mortgages
|
|
1
|
|
|
1
|
|
||
Other
|
|
40
|
|
|
2
|
|
||
Total recoveries
|
|
391
|
|
|
87
|
|
||
Net recoveries (charge-offs)
|
|
182
|
|
|
(157
|
)
|
||
Provision for loan and lease losses
|
|
572
|
|
|
525
|
|
||
Allowance at end of period
|
|
$
|
21,666
|
|
|
$
|
16,684
|
|
Annualized net recoveries (charge-offs) as a % of average gross loans and leases
|
|
0.05
|
%
|
|
(0.04
|
)%
|
•
|
the behavior of interest rates and pricing spreads;
|
•
|
the changes in product balances; and
|
•
|
the behavior of loan and deposit clients in different rate environments.
|
(a)
|
None.
|
(b)
|
Not applicable.
|
(c)
|
None.
|
|
|
|
|
|
|
|
|
|
31.1
|
|
|
Certification of the Chief Executive Officer
|
|
|
|
|
31.2
|
|
|
Certification of the Chief Financial Officer
|
|
|
|
|
32
|
|
|
Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350
|
|
|
|
|
101
|
|
|
The following financial information from First Business Financial Services, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets as of March 31, 2017 and December 31, 2016, (ii) Consolidated Statements of Income for the three ended March 31, 2017 and 2016, (iii) Consolidated Statements of Comprehensive Income for the three months ended March 31, 2017 and 2016, (iv) Consolidated Statements of Changes in Stockholders’ Equity for the three months ended March 31, 2017 and 2016, (v) Consolidated Statements of Cash Flows for the three months ended March 31, 2017 and 2016, and (vi) the Notes to Unaudited Consolidated Financial Statements
|
|
|
|
|
FIRST BUSINESS FINANCIAL SERVICES, INC.
|
April 28, 2017
|
/s/ Corey A. Chambas
|
|
Corey A. Chambas
|
|
Chief Executive Officer
|
|
|
April 28, 2017
|
/s/ Edward G. Sloane, Jr.
|
|
Edward G. Sloane, Jr.
|
|
Chief Financial Officer
|
|
(principal financial officer)
|
31.1
|
|
Certification of the Chief Executive Officer
|
|
|
|
31.2
|
|
Certification of the Chief Financial Officer
|
|
|
|
32
|
|
Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350
|
|
|
|
101
|
|
The following financial information from First Business Financial Services, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets as of March 31, 2017 and December 31, 2016, (ii) Consolidated Statements of Income for the three ended March 31, 2017 and 2016, (iii) Consolidated Statements of Comprehensive Income for the three months ended March 31, 2017 and 2016, (iv) Consolidated Statements of Changes in Stockholders’ Equity for the three months ended March 31, 2017 and 2016, (v) Consolidated Statements of Cash Flows for the three months ended March 31, 2017 and 2016, and (vi) the Notes to Unaudited Consolidated Financial Statements
|
|
|
|
1 Year First Business Financial... Chart |
1 Month First Business Financial... Chart |
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