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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 | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 38.83 | 15.55 | 41.24 | 0 | 13:10:37 |
|
☑
|
|
Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
☐
|
|
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
Wisconsin
|
|
39-1576570
|
|
|
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
401 Charmany Drive
|
|
53719
|
|
Madison
|
Wisconsin
|
|
|
(Address of Principal Executive Offices)
|
|
(Zip Code)
|
|
|
|
|
|
Title of each class
|
|
Trading Symbol(s)
|
|
Name of each exchange on which registered
|
Common Stock, $0.01 par value
|
|
FBIZ
|
|
The Nasdaq Stock Market LLC
|
Large accelerated filer
|
¨
|
Accelerated filer
|
þ
|
Non-accelerated filer
|
¨
|
Smaller reporting company
|
☑
|
Emerging growth company
|
☐
|
|
|
June 30,
2020 |
|
December 31,
2019 |
||||
|
|
(Unaudited)
|
|
|
||||
|
(In Thousands, Except Share Data)
|
|||||||
Assets
|
|
|
|
|
||||
Cash and due from banks
|
|
$
|
14,552
|
|
|
$
|
16,107
|
|
Short-term investments
|
|
27,839
|
|
|
50,995
|
|
||
Cash and cash equivalents
|
|
42,391
|
|
|
67,102
|
|
||
Securities available-for-sale, at fair value
|
|
171,680
|
|
|
173,133
|
|
||
Securities held-to-maturity, at amortized cost
|
|
29,826
|
|
|
32,700
|
|
||
Loans held for sale
|
|
13,672
|
|
|
5,205
|
|
||
Loans and leases receivable, net of allowance for loan and lease losses of $27,464 and $19,520, respectively
|
|
2,029,399
|
|
|
1,695,115
|
|
||
Premises and equipment, net
|
|
2,266
|
|
|
2,557
|
|
||
Foreclosed properties
|
|
1,389
|
|
|
2,919
|
|
||
Right-of-use assets
|
|
6,272
|
|
|
6,906
|
|
||
Bank-owned life insurance
|
|
51,433
|
|
|
42,761
|
|
||
Federal Home Loan Bank stock, at cost
|
|
13,470
|
|
|
7,953
|
|
||
Goodwill and other intangible assets
|
|
11,925
|
|
|
11,922
|
|
||
Accrued interest receivable and other assets
|
|
95,091
|
|
|
48,506
|
|
||
Total assets
|
|
$
|
2,468,814
|
|
|
$
|
2,096,779
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
||||
Deposits
|
|
$
|
1,710,375
|
|
|
$
|
1,530,379
|
|
Federal Home Loan Bank advances and other borrowings
|
|
465,007
|
|
|
319,382
|
|
||
Junior subordinated notes
|
|
10,054
|
|
|
10,047
|
|
||
Lease liabilities
|
|
6,877
|
|
|
7,541
|
|
||
Accrued interest payable and other liabilities
|
|
78,939
|
|
|
35,274
|
|
||
Total liabilities
|
|
2,271,252
|
|
|
1,902,623
|
|
||
Stockholders’ equity:
|
|
|
|
|
||||
Preferred stock, $0.01 par value, 2,500,000 shares authorized, none issued or outstanding
|
|
—
|
|
|
—
|
|
||
Common stock, $0.01 par value, 25,000,000 shares authorized, 9,231,761 and 9,162,720 shares issued, 8,575,134 and 8,566,044 shares outstanding at June 30, 2020 and December 31, 2019, respectively
|
|
92
|
|
|
92
|
|
||
Additional paid-in capital
|
|
82,121
|
|
|
81,188
|
|
||
Retained earnings
|
|
132,882
|
|
|
129,105
|
|
||
Accumulated other comprehensive loss
|
|
(1,186
|
)
|
|
(1,348
|
)
|
||
Treasury stock, 656,627 and 596,676 shares at June 30, 2020 and December 31, 2019, respectively, at cost
|
|
(16,347
|
)
|
|
(14,881
|
)
|
||
Total stockholders’ equity
|
|
197,562
|
|
|
194,156
|
|
||
Total liabilities and stockholders’ equity
|
|
$
|
2,468,814
|
|
|
$
|
2,096,779
|
|
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
|
(In Thousands, Except Per Share Data)
|
||||||||||||||
Interest income
|
|
|
|
|
|
|
|
|
||||||||
Loans and leases
|
|
$
|
21,548
|
|
|
$
|
23,904
|
|
|
$
|
43,397
|
|
|
$
|
48,111
|
|
Securities
|
|
1,070
|
|
|
1,175
|
|
|
2,258
|
|
|
2,270
|
|
||||
Short-term investments
|
|
143
|
|
|
230
|
|
|
477
|
|
|
608
|
|
||||
Total interest income
|
|
22,761
|
|
|
25,309
|
|
|
46,132
|
|
|
50,989
|
|
||||
Interest expense
|
|
|
|
|
|
|
|
|
||||||||
Deposits
|
|
1,924
|
|
|
6,258
|
|
|
6,040
|
|
|
12,054
|
|
||||
Federal Home Loan Bank advances and other borrowings
|
|
1,672
|
|
|
1,922
|
|
|
3,600
|
|
|
3,777
|
|
||||
Junior subordinated notes
|
|
277
|
|
|
277
|
|
|
555
|
|
|
552
|
|
||||
Total interest expense
|
|
3,873
|
|
|
8,457
|
|
|
10,195
|
|
|
16,383
|
|
||||
Net interest income
|
|
18,888
|
|
|
16,852
|
|
|
35,937
|
|
|
34,606
|
|
||||
Provision for loan and lease losses
|
|
5,469
|
|
|
(784
|
)
|
|
8,651
|
|
|
(736
|
)
|
||||
Net interest income after provision for loan and lease losses
|
|
13,419
|
|
|
17,636
|
|
|
27,286
|
|
|
35,342
|
|
||||
Non-interest income
|
|
|
|
|
|
|
|
|
||||||||
Private wealth management service fees
|
|
2,124
|
|
|
2,138
|
|
|
4,235
|
|
|
4,065
|
|
||||
Gain on sale of Small Business Administration loans
|
|
574
|
|
|
297
|
|
|
839
|
|
|
539
|
|
||||
Service charges on deposits
|
|
829
|
|
|
743
|
|
|
1,647
|
|
|
1,520
|
|
||||
Loan fees
|
|
451
|
|
|
464
|
|
|
936
|
|
|
877
|
|
||||
Increase in cash surrender value of bank-owned life insurance
|
|
377
|
|
|
297
|
|
|
672
|
|
|
589
|
|
||||
Net loss on sale of securities
|
|
—
|
|
|
(1
|
)
|
|
(4
|
)
|
|
(1
|
)
|
||||
Commercial loan swap fees
|
|
1,655
|
|
|
1,051
|
|
|
3,336
|
|
|
1,523
|
|
||||
Other non-interest income
|
|
309
|
|
|
816
|
|
|
1,072
|
|
|
1,331
|
|
||||
Total non-interest income
|
|
6,319
|
|
|
5,805
|
|
|
12,733
|
|
|
10,443
|
|
||||
Non-interest expense
|
|
|
|
|
|
|
|
|
||||||||
Compensation
|
|
10,796
|
|
|
10,503
|
|
|
21,848
|
|
|
20,667
|
|
||||
Occupancy
|
|
554
|
|
|
559
|
|
|
1,126
|
|
|
1,149
|
|
||||
Professional fees
|
|
859
|
|
|
784
|
|
|
1,678
|
|
|
1,994
|
|
||||
Data processing
|
|
710
|
|
|
689
|
|
|
1,386
|
|
|
1,269
|
|
||||
Marketing
|
|
352
|
|
|
581
|
|
|
813
|
|
|
1,063
|
|
||||
Equipment
|
|
304
|
|
|
272
|
|
|
595
|
|
|
661
|
|
||||
Computer software
|
|
966
|
|
|
827
|
|
|
1,856
|
|
|
1,626
|
|
||||
FDIC insurance
|
|
239
|
|
|
302
|
|
|
448
|
|
|
595
|
|
||||
Collateral liquidation costs (recovery)
|
|
115
|
|
|
89
|
|
|
236
|
|
|
(1
|
)
|
||||
Net loss (gain) on foreclosed properties
|
|
348
|
|
|
(21
|
)
|
|
450
|
|
|
(21
|
)
|
||||
Tax credit investment impairment
|
|
1,841
|
|
|
2,088
|
|
|
1,954
|
|
|
4,102
|
|
||||
SBA recourse (benefit) provision
|
|
(30
|
)
|
|
113
|
|
|
(5
|
)
|
|
594
|
|
||||
Loss on early extinguishment of debt
|
|
744
|
|
|
—
|
|
|
744
|
|
|
—
|
|
||||
Other non-interest expense
|
|
545
|
|
|
678
|
|
|
1,359
|
|
|
1,508
|
|
||||
Total non-interest expense
|
|
18,343
|
|
|
17,464
|
|
|
34,488
|
|
|
35,206
|
|
||||
Income before income tax benefit
|
|
1,395
|
|
|
5,977
|
|
|
5,531
|
|
|
10,579
|
|
||||
Income tax benefit
|
|
(1,928
|
)
|
|
(595
|
)
|
|
(1,070
|
)
|
|
(1,893
|
)
|
||||
Net income
|
|
$
|
3,323
|
|
|
$
|
6,572
|
|
|
$
|
6,601
|
|
|
$
|
12,472
|
|
Earnings per common share
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
0.38
|
|
|
$
|
0.75
|
|
|
$
|
0.77
|
|
|
$
|
1.43
|
|
Diluted
|
|
0.38
|
|
|
0.75
|
|
|
0.77
|
|
|
1.43
|
|
||||
Dividends declared per share
|
|
0.165
|
|
|
0.15
|
|
|
0.33
|
|
|
0.30
|
|
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Net income
|
|
$
|
3,323
|
|
|
$
|
6,572
|
|
|
$
|
6,601
|
|
|
$
|
12,472
|
|
Other comprehensive income, before tax
|
|
|
|
|
|
|
|
|
||||||||
Securities available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
Unrealized securities (losses) gains arising during the period
|
|
(264
|
)
|
|
1,928
|
|
|
4,237
|
|
|
3,239
|
|
||||
Reclassification adjustment for net loss realized in net income
|
|
—
|
|
|
1
|
|
|
4
|
|
|
1
|
|
||||
Securities held-to-maturity:
|
|
|
|
|
|
|
|
|
||||||||
Amortization of net unrealized losses transferred from available-for-sale
|
|
10
|
|
|
14
|
|
|
20
|
|
|
28
|
|
||||
Interest rate swaps:
|
|
|
|
|
|
|
|
|
||||||||
Unrealized losses on interest rate swaps arising during the period
|
|
(418
|
)
|
|
(1,514
|
)
|
|
(4,043
|
)
|
|
(2,464
|
)
|
||||
Income tax benefit (expense)
|
|
171
|
|
|
(110
|
)
|
|
(56
|
)
|
|
(206
|
)
|
||||
Total other comprehensive (loss) income
|
|
(501
|
)
|
|
319
|
|
|
162
|
|
|
598
|
|
||||
Comprehensive income
|
|
$
|
2,822
|
|
|
$
|
6,891
|
|
|
$
|
6,763
|
|
|
$
|
13,070
|
|
|
|
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 January 1, 2019
|
|
8,785,480
|
|
|
$
|
91
|
|
|
$
|
79,623
|
|
|
$
|
110,310
|
|
|
$
|
(1,684
|
)
|
|
$
|
(7,633
|
)
|
|
$
|
180,707
|
|
Cumulative effect of adoption of ASC Topic 842
|
|
—
|
|
|
—
|
|
|
—
|
|
|
687
|
|
|
—
|
|
|
—
|
|
|
687
|
|
||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,899
|
|
|
—
|
|
|
—
|
|
|
5,899
|
|
||||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
279
|
|
|
—
|
|
|
279
|
|
||||||
Share-based compensation - restricted shares, net
|
|
49,730
|
|
|
—
|
|
|
318
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
318
|
|
||||||
Cash dividends ($0.15 per share)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,312
|
)
|
|
—
|
|
|
—
|
|
|
(1,312
|
)
|
||||||
Treasury stock purchased
|
|
(70,074
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,478
|
)
|
|
(1,478
|
)
|
||||||
Balance at March 31, 2019
|
|
8,765,136
|
|
|
91
|
|
|
79,941
|
|
|
115,584
|
|
|
(1,405
|
)
|
|
(9,111
|
)
|
|
185,100
|
|
||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,572
|
|
|
—
|
|
|
—
|
|
|
6,572
|
|
||||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
319
|
|
|
—
|
|
|
319
|
|
||||||
Share-based compensation - restricted shares, net
|
|
31,151
|
|
|
—
|
|
|
410
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
410
|
|
||||||
Cash dividends ($0.15 per share)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,315
|
)
|
|
—
|
|
|
—
|
|
|
(1,315
|
)
|
||||||
Treasury stock purchased
|
|
(96,831
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,231
|
)
|
|
(2,231
|
)
|
||||||
Balance at June 30, 2019
|
|
8,699,456
|
|
|
$
|
91
|
|
|
$
|
80,351
|
|
|
$
|
120,841
|
|
|
$
|
(1,086
|
)
|
|
$
|
(11,342
|
)
|
|
$
|
188,855
|
|
|
|
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 January 1, 2020
|
|
8,566,044
|
|
|
$
|
92
|
|
|
$
|
81,188
|
|
|
$
|
129,105
|
|
|
$
|
(1,348
|
)
|
|
$
|
(14,881
|
)
|
|
$
|
194,156
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,278
|
|
|
—
|
|
|
—
|
|
|
3,278
|
|
||||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
663
|
|
|
—
|
|
|
663
|
|
||||||
Share-based compensation - restricted shares, net
|
|
63,684
|
|
|
—
|
|
|
417
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
417
|
|
||||||
Cash dividends ($0.165 per share)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,410
|
)
|
|
—
|
|
|
—
|
|
|
(1,410
|
)
|
||||||
Treasury stock purchased
|
|
(58,594
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,447
|
)
|
|
(1,447
|
)
|
||||||
Balance at March 31, 2020
|
|
8,571,134
|
|
|
92
|
|
|
81,605
|
|
|
130,973
|
|
|
(685
|
)
|
|
(16,328
|
)
|
|
195,657
|
|
||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,323
|
|
|
—
|
|
|
—
|
|
|
3,323
|
|
||||||
Other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(501
|
)
|
|
—
|
|
|
(501
|
)
|
||||||
Share-based compensation - restricted shares, net
|
|
5,357
|
|
|
—
|
|
|
516
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
516
|
|
||||||
Cash dividends ($0.165 per share)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,414
|
)
|
|
—
|
|
|
—
|
|
|
(1,414
|
)
|
||||||
Treasury stock purchased
|
|
(1,357
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19
|
)
|
|
(19
|
)
|
||||||
Balance at June 30, 2020
|
|
8,575,134
|
|
|
$
|
92
|
|
|
$
|
82,121
|
|
|
$
|
132,882
|
|
|
$
|
(1,186
|
)
|
|
$
|
(16,347
|
)
|
|
$
|
197,562
|
|
|
|
For the Six Months Ended June 30,
|
||||||
|
|
2020
|
|
2019
|
||||
|
|
(In Thousands)
|
||||||
Operating activities
|
|
|
|
|
||||
Net income
|
|
$
|
6,601
|
|
|
$
|
12,472
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
||||
Deferred income taxes, net
|
|
(133
|
)
|
|
(1,245
|
)
|
||
Impairment of tax credit investments
|
|
1,954
|
|
|
4,102
|
|
||
Provision for loan and lease losses
|
|
8,651
|
|
|
(736
|
)
|
||
SBA recourse (benefit) provision
|
|
(5
|
)
|
|
594
|
|
||
Depreciation, amortization and accretion, net
|
|
1,637
|
|
|
1,437
|
|
||
Share-based compensation
|
|
933
|
|
|
728
|
|
||
Net loss on sale of securities
|
|
4
|
|
|
1
|
|
||
Increase in bank-owned life insurance policies
|
|
(672
|
)
|
|
(589
|
)
|
||
Origination of loans for sale
|
|
(39,931
|
)
|
|
(29,116
|
)
|
||
Sale of loans originated for sale
|
|
32,303
|
|
|
30,156
|
|
||
Gain on sale of SBA loans
|
|
(839
|
)
|
|
(539
|
)
|
||
Net loss (gain) on foreclosed properties, including impairment valuation
|
|
450
|
|
|
(21
|
)
|
||
Excess tax benefit from share-based compensation
|
|
(19
|
)
|
|
(11
|
)
|
||
Payments on operating leases
|
|
(775
|
)
|
|
(759
|
)
|
||
Payments received on operating leases
|
|
56
|
|
|
—
|
|
||
Net increase in accrued interest receivable and other assets
|
|
(50,951
|
)
|
|
(17,612
|
)
|
||
Net increase in accrued interest payable and other liabilities
|
|
42,042
|
|
|
12,435
|
|
||
Net cash provided by operating activities
|
|
1,306
|
|
|
11,297
|
|
||
Investing activities
|
|
|
|
|
||||
Proceeds from maturities, redemptions, and paydowns of available-for-sale securities
|
|
22,457
|
|
|
12,480
|
|
||
Proceeds from maturities, redemptions, and paydowns of held-to-maturity securities
|
|
2,844
|
|
|
3,176
|
|
||
Proceeds from sale of available-for-sale securities
|
|
839
|
|
|
2,026
|
|
||
Purchases of available-for-sale securities
|
|
(17,753
|
)
|
|
(31,934
|
)
|
||
Proceeds from sale of foreclosed properties
|
|
1,160
|
|
|
—
|
|
||
Net increase in loans and leases
|
|
(343,016
|
)
|
|
(102,162
|
)
|
||
Investments in limited partnerships
|
|
—
|
|
|
(1,250
|
)
|
||
Returns of investments in limited partnerships
|
|
—
|
|
|
280
|
|
||
Investment in historic development entities
|
|
(259
|
)
|
|
(2,137
|
)
|
||
Distributions from historic development entities
|
|
30
|
|
|
—
|
|
||
Investment in Federal Home Loan Bank stock
|
|
(6,892
|
)
|
|
(2,020
|
)
|
||
Proceeds from the sale of Federal Home Loan Bank stock
|
|
1,375
|
|
|
2,540
|
|
||
Purchases of leasehold improvements and equipment, net
|
|
(141
|
)
|
|
(11
|
)
|
||
Purchases of bank-owned life insurance policies
|
|
(8,000
|
)
|
|
—
|
|
||
Net cash used in investing activities
|
|
(347,356
|
)
|
|
(119,012
|
)
|
||
Financing activities
|
|
|
|
|
||||
Net increase in deposits
|
|
179,996
|
|
|
74,346
|
|
||
Proceeds from Federal Home Loan Bank advances
|
|
498,500
|
|
|
265,000
|
|
||
Repayment of Federal Home Loan Bank advances
|
|
(383,243
|
)
|
|
(266,000
|
)
|
||
Loss on early extinguishment of debt
|
|
744
|
|
|
—
|
|
||
Proceeds from the Federal Reserve Paycheck Protection Program Lending Facility
|
|
29,605
|
|
|
—
|
|
||
Net increase in long-term borrowed funds
|
|
27
|
|
|
35
|
|
||
Cash dividends paid
|
|
(2,824
|
)
|
|
(2,628
|
)
|
||
Purchase of treasury stock
|
|
(1,466
|
)
|
|
(3,709
|
)
|
||
Net cash provided by financing activities
|
|
321,339
|
|
|
67,044
|
|
||
Net decrease in cash and cash equivalents
|
|
(24,711
|
)
|
|
(40,671
|
)
|
||
Cash and cash equivalents at the beginning of the period
|
|
67,102
|
|
|
86,546
|
|
||
Cash and cash equivalents at the end of the period
|
|
$
|
42,391
|
|
|
$
|
45,875
|
|
Supplementary cash flow information
|
|
|
|
|
||||
Cash paid during the period for:
|
|
|
|
|
||||
Interest paid on deposits and borrowings
|
|
$
|
11,064
|
|
|
$
|
15,744
|
|
Income taxes paid
|
|
1,356
|
|
|
1,308
|
|
||
Non-cash investing and financing activities:
|
|
|
|
|
||||
Transfer from loans and leases to foreclosed properties
|
|
80
|
|
|
93
|
|
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
|
(Dollars in Thousands, Except Share Data)
|
||||||||||||||
Basic earnings per common share
|
|
|
|
|
|
|
|
|
||||||||
Net income
|
|
$
|
3,323
|
|
|
$
|
6,572
|
|
|
$
|
6,601
|
|
|
$
|
12,472
|
|
Less: earnings allocated to participating securities
|
|
93
|
|
|
151
|
|
|
173
|
|
|
239
|
|
||||
Basic earnings allocated to common stockholders
|
|
$
|
3,230
|
|
|
$
|
6,421
|
|
|
$
|
6,428
|
|
|
$
|
12,233
|
|
Weighted-average common shares outstanding, excluding participating securities
|
|
8,392,197
|
|
|
8,569,581
|
|
|
8,379,696
|
|
|
8,584,444
|
|
||||
Basic earnings per common share
|
|
$
|
0.38
|
|
|
$
|
0.75
|
|
|
$
|
0.77
|
|
|
$
|
1.43
|
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per common share
|
|
|
|
|
|
|
|
|
||||||||
Earnings allocated to common stockholders, diluted
|
|
$
|
3,230
|
|
|
$
|
6,421
|
|
|
$
|
6,428
|
|
|
$
|
12,233
|
|
Weighted-average diluted common shares outstanding, excluding participating securities
|
|
8,392,197
|
|
|
8,569,581
|
|
|
8,379,696
|
|
|
8,584,444
|
|
||||
Diluted earnings per common share
|
|
$
|
0.38
|
|
|
$
|
0.75
|
|
|
$
|
0.77
|
|
|
$
|
1.43
|
|
|
|
Number of
Restricted Shares/Units
|
|
Weighted Average
Grant-Date
Fair Value
|
|||
Nonvested balance as of January 1, 2019
|
|
131,621
|
|
|
$
|
21.02
|
|
Granted
|
|
95,265
|
|
|
23.64
|
|
|
Vested
|
|
(48,207
|
)
|
|
20.62
|
|
|
Forfeited
|
|
(1,744
|
)
|
|
23.67
|
|
|
Nonvested balance as of December 31, 2019
|
|
176,935
|
|
|
22.51
|
|
|
Granted (1)
|
|
75,345
|
|
|
26.10
|
|
|
Vested
|
|
(18,197
|
)
|
|
22.66
|
|
|
Forfeited
|
|
(6,304
|
)
|
|
22.14
|
|
|
Nonvested balance as of June 30, 2020
|
|
227,779
|
|
|
$
|
23.98
|
|
(1)
|
The number of restricted shares/units shown includes the shares that would be granted if the target level of performance is achieved related to the performance based restricted stock units. The number of shares actually issued may vary.
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
(In Thousands)
|
||||||||||||||
Share-based compensation expense
|
$
|
516
|
|
|
$
|
410
|
|
|
$
|
933
|
|
|
$
|
728
|
|
|
|
As of June 30, 2020
|
||||||||||||||
|
|
Amortized Cost
|
|
Gross
Unrealized Gains
|
|
Gross
Unrealized Losses
|
|
Fair Value
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government agency securities - government-sponsored enterprises
|
|
$
|
22,023
|
|
|
$
|
15
|
|
|
$
|
(68
|
)
|
|
$
|
21,970
|
|
Municipal securities
|
|
11,081
|
|
|
390
|
|
|
—
|
|
|
11,471
|
|
||||
Residential mortgage-backed securities - government issued
|
|
12,296
|
|
|
587
|
|
|
—
|
|
|
12,883
|
|
||||
Residential mortgage-backed securities - government-sponsored enterprises
|
|
101,005
|
|
|
3,084
|
|
|
—
|
|
|
104,089
|
|
||||
Commercial mortgage-backed securities - government issued
|
|
6,161
|
|
|
205
|
|
|
—
|
|
|
6,366
|
|
||||
Commercial mortgage-backed securities - government-sponsored enterprises
|
|
11,854
|
|
|
750
|
|
|
—
|
|
|
12,604
|
|
||||
Other securities
|
|
2,205
|
|
|
92
|
|
|
—
|
|
|
2,297
|
|
||||
|
|
$
|
166,625
|
|
|
$
|
5,123
|
|
|
$
|
(68
|
)
|
|
$
|
171,680
|
|
|
|
As of December 31, 2019
|
||||||||||||||
|
|
Amortized Cost
|
|
Gross
Unrealized Gains
|
|
Gross
Unrealized Losses
|
|
Fair Value
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government agency securities - government-sponsored enterprises
|
|
$
|
23,616
|
|
|
$
|
152
|
|
|
$
|
(10
|
)
|
|
$
|
23,758
|
|
Municipal securities
|
|
160
|
|
|
—
|
|
|
—
|
|
|
160
|
|
||||
Residential mortgage-backed securities - government issued
|
|
16,119
|
|
|
234
|
|
|
(5
|
)
|
|
16,348
|
|
||||
Residential mortgage-backed securities - government-sponsored enterprises
|
|
111,561
|
|
|
847
|
|
|
(406
|
)
|
|
112,002
|
|
||||
Commercial mortgage-backed securities - government issued
|
|
6,705
|
|
|
45
|
|
|
(87
|
)
|
|
6,663
|
|
||||
Commercial mortgage-backed securities - government-sponsored enterprises
|
|
11,953
|
|
|
23
|
|
|
(9
|
)
|
|
11,967
|
|
||||
Other securities
|
|
2,205
|
|
|
30
|
|
|
—
|
|
|
2,235
|
|
||||
|
|
$
|
172,319
|
|
|
$
|
1,331
|
|
|
$
|
(517
|
)
|
|
$
|
173,133
|
|
|
|
As of June 30, 2020
|
||||||||||||||
|
|
Amortized Cost
|
|
Gross
Unrealized Gains
|
|
Gross
Unrealized Losses
|
|
Fair Value
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Held-to-maturity:
|
|
|
|
|
|
|
|
|
||||||||
Municipal securities
|
|
$
|
18,608
|
|
|
$
|
480
|
|
|
$
|
(26
|
)
|
|
$
|
19,062
|
|
Residential mortgage-backed securities - government issued
|
|
4,789
|
|
|
148
|
|
|
—
|
|
|
4,937
|
|
||||
Residential mortgage-backed securities - government-sponsored enterprises
|
|
4,416
|
|
|
163
|
|
|
—
|
|
|
4,579
|
|
||||
Commercial mortgage-backed securities - government-sponsored enterprises
|
|
2,013
|
|
|
296
|
|
|
—
|
|
|
2,309
|
|
||||
|
|
$
|
29,826
|
|
|
$
|
1,087
|
|
|
$
|
(26
|
)
|
|
$
|
30,887
|
|
|
|
As of December 31, 2019
|
||||||||||||||
|
|
Amortized Cost
|
|
Gross
Unrealized Gains
|
|
Gross
Unrealized Losses
|
|
Fair Value
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Held-to-maturity:
|
|
|
|
|
|
|
|
|
||||||||
Municipal securities
|
|
$
|
19,727
|
|
|
$
|
335
|
|
|
$
|
(8
|
)
|
|
$
|
20,054
|
|
Residential mortgage-backed securities - government issued
|
|
5,776
|
|
|
19
|
|
|
(9
|
)
|
|
5,786
|
|
||||
Residential mortgage-backed securities - government-sponsored enterprises
|
|
5,183
|
|
|
51
|
|
|
(23
|
)
|
|
5,211
|
|
||||
Commercial mortgage-backed securities - government-sponsored enterprises
|
|
2,014
|
|
|
123
|
|
|
—
|
|
|
2,137
|
|
||||
|
|
$
|
32,700
|
|
|
$
|
528
|
|
|
$
|
(40
|
)
|
|
$
|
33,188
|
|
|
|
Available-for-Sale
|
|
Held-to-Maturity
|
||||||||||||
|
|
Amortized Cost
|
|
Fair Value
|
|
Amortized Cost
|
|
Fair Value
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Due in one year or less
|
|
$
|
1,000
|
|
|
$
|
1,003
|
|
|
$
|
2,556
|
|
|
$
|
2,578
|
|
Due in one year through five years
|
|
8,650
|
|
|
8,969
|
|
|
12,346
|
|
|
12,621
|
|
||||
Due in five through ten years
|
|
35,048
|
|
|
36,655
|
|
|
11,283
|
|
|
11,904
|
|
||||
Due in over ten years
|
|
121,927
|
|
|
125,053
|
|
|
3,641
|
|
|
3,784
|
|
||||
|
|
$
|
166,625
|
|
|
$
|
171,680
|
|
|
$
|
29,826
|
|
|
$
|
30,887
|
|
|
|
As of June 30, 2020
|
||||||||||||||||||||||
|
|
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 securities - government-sponsored enterprises
|
|
$
|
16,403
|
|
|
$
|
68
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
16,403
|
|
|
$
|
68
|
|
|
|
As of December 31, 2019
|
||||||||||||||||||||||
|
|
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 securities - government-sponsored enterprises
|
|
$
|
4,363
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,363
|
|
|
$
|
10
|
|
Residential mortgage-backed securities - government issued
|
|
4,619
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
4,619
|
|
|
5
|
|
||||||
Residential mortgage-backed securities - government-sponsored enterprises
|
|
36,972
|
|
|
253
|
|
|
11,304
|
|
|
153
|
|
|
48,276
|
|
|
406
|
|
||||||
Commercial mortgage-backed securities - government issued
|
|
—
|
|
|
—
|
|
|
4,727
|
|
|
87
|
|
|
4,727
|
|
|
87
|
|
||||||
Commercial mortgage-backed securities - government-sponsored enterprises
|
|
2,245
|
|
|
4
|
|
|
1,047
|
|
|
5
|
|
|
3,292
|
|
|
9
|
|
||||||
|
|
$
|
48,199
|
|
|
$
|
272
|
|
|
$
|
17,078
|
|
|
$
|
245
|
|
|
$
|
65,277
|
|
|
$
|
517
|
|
|
|
As of June 30, 2020
|
||||||||||||||||||||||
|
|
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:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Municipal securities
|
|
$
|
479
|
|
|
$
|
26
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
479
|
|
|
$
|
26
|
|
|
|
As of December 31, 2019
|
||||||||||||||||||||||
|
|
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:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Municipal securities
|
|
$
|
499
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
499
|
|
|
$
|
8
|
|
Residential mortgage-backed securities - government issued
|
|
—
|
|
|
—
|
|
|
1,887
|
|
|
9
|
|
|
1,887
|
|
|
9
|
|
||||||
Residential mortgage-backed securities - government-sponsored enterprises
|
|
1,364
|
|
|
5
|
|
|
2,144
|
|
|
18
|
|
|
3,508
|
|
|
23
|
|
||||||
|
|
$
|
1,863
|
|
|
$
|
13
|
|
|
$
|
4,031
|
|
|
$
|
27
|
|
|
$
|
5,894
|
|
|
$
|
40
|
|
|
|
June 30,
2020 |
|
December 31,
2019 |
||||
|
|
(In Thousands)
|
||||||
Commercial real estate:
|
|
|
|
|
||||
Commercial real estate — owner occupied
|
|
$
|
229,994
|
|
|
$
|
226,614
|
|
Commercial real estate — non-owner occupied
|
|
533,211
|
|
|
516,652
|
|
||
Land development
|
|
44,299
|
|
|
51,097
|
|
||
Construction
|
|
133,375
|
|
|
109,057
|
|
||
Multi-family
|
|
244,496
|
|
|
217,322
|
|
||
1-4 family
|
|
36,823
|
|
|
33,359
|
|
||
Total commercial real estate
|
|
1,222,198
|
|
|
1,154,101
|
|
||
Commercial and industrial
|
|
781,239
|
|
|
503,402
|
|
||
Direct financing leases, net
|
|
25,525
|
|
|
28,203
|
|
||
Consumer and other:
|
|
|
|
|
||||
Home equity and second mortgages
|
|
6,706
|
|
|
7,006
|
|
||
Other
|
|
29,737
|
|
|
22,664
|
|
||
Total consumer and other
|
|
36,443
|
|
|
29,670
|
|
||
Total gross loans and leases receivable
|
|
2,065,405
|
|
|
1,715,376
|
|
||
Less:
|
|
|
|
|
||||
Allowance for loan and lease losses
|
|
27,464
|
|
|
19,520
|
|
||
Deferred loan fees
|
|
8,542
|
|
|
741
|
|
||
Loans and leases receivable, net
|
|
$
|
2,029,399
|
|
|
$
|
1,695,115
|
|
|
|
June 30,
2020 |
|
December 31,
2019 |
||||
|
|
(In Thousands)
|
||||||
SBA 7(a) loans
|
|
$
|
40,815
|
|
|
$
|
40,402
|
|
SBA 504 loans
|
|
23,479
|
|
|
20,592
|
|
||
SBA Express loans and lines of credit
|
|
1,549
|
|
|
1,781
|
|
||
SBA PPP loans
|
|
327,932
|
|
|
—
|
|
||
Total SBA loans
|
|
$
|
393,775
|
|
|
$
|
62,775
|
|
|
|
June 30, 2020
|
||||||||||||||||||
|
|
Category
|
|
|
||||||||||||||||
|
|
I
|
|
II
|
|
III
|
|
IV
|
|
Total
|
||||||||||
|
|
(Dollars in Thousands)
|
||||||||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate — owner occupied
|
|
$
|
170,546
|
|
|
$
|
26,515
|
|
|
$
|
25,430
|
|
|
$
|
7,503
|
|
|
$
|
229,994
|
|
Commercial real estate — non-owner occupied
|
|
458,069
|
|
|
55,494
|
|
|
19,648
|
|
|
—
|
|
|
533,211
|
|
|||||
Land development
|
|
42,922
|
|
|
328
|
|
|
—
|
|
|
1,049
|
|
|
44,299
|
|
|||||
Construction
|
|
122,392
|
|
|
10,983
|
|
|
—
|
|
|
—
|
|
|
133,375
|
|
|||||
Multi-family
|
|
220,688
|
|
|
23,808
|
|
|
—
|
|
|
—
|
|
|
244,496
|
|
|||||
1-4 family
|
|
32,687
|
|
|
1,682
|
|
|
2,072
|
|
|
382
|
|
|
36,823
|
|
|||||
Total commercial real estate
|
|
1,047,304
|
|
|
118,810
|
|
|
47,150
|
|
|
8,934
|
|
|
1,222,198
|
|
|||||
Commercial and industrial
|
|
658,377
|
|
|
41,156
|
|
|
66,672
|
|
|
15,034
|
|
|
781,239
|
|
|||||
Direct financing leases, net
|
|
18,661
|
|
|
214
|
|
|
6,601
|
|
|
49
|
|
|
25,525
|
|
|||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Home equity and second mortgages
|
|
5,969
|
|
|
602
|
|
|
135
|
|
|
—
|
|
|
6,706
|
|
|||||
Other
|
|
29,425
|
|
|
185
|
|
|
—
|
|
|
127
|
|
|
29,737
|
|
|||||
Total consumer and other
|
|
35,394
|
|
|
787
|
|
|
135
|
|
|
127
|
|
|
36,443
|
|
|||||
Total gross loans and leases receivable
|
|
$
|
1,759,736
|
|
|
$
|
160,967
|
|
|
$
|
120,558
|
|
|
$
|
24,144
|
|
|
$
|
2,065,405
|
|
Category as a % of total portfolio
|
|
85.20
|
%
|
|
7.79
|
%
|
|
5.84
|
%
|
|
1.17
|
%
|
|
100.00
|
%
|
|
|
December 31, 2019
|
||||||||||||||||||
|
|
Category
|
|
|
||||||||||||||||
|
|
I
|
|
II
|
|
III
|
|
IV
|
|
Total
|
||||||||||
|
|
(Dollars in Thousands)
|
||||||||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate — owner occupied
|
|
$
|
187,728
|
|
|
$
|
18,455
|
|
|
$
|
16,399
|
|
|
$
|
4,032
|
|
|
$
|
226,614
|
|
Commercial real estate — non-owner occupied
|
|
459,821
|
|
|
55,524
|
|
|
1,307
|
|
|
—
|
|
|
516,652
|
|
|||||
Land development
|
|
49,132
|
|
|
439
|
|
|
—
|
|
|
1,526
|
|
|
51,097
|
|
|||||
Construction
|
|
108,959
|
|
|
—
|
|
|
98
|
|
|
—
|
|
|
109,057
|
|
|||||
Multi-family
|
|
205,750
|
|
|
11,572
|
|
|
—
|
|
|
—
|
|
|
217,322
|
|
|||||
1-4 family
|
|
29,284
|
|
|
1,843
|
|
|
1,759
|
|
|
473
|
|
|
33,359
|
|
|||||
Total commercial real estate
|
|
1,040,674
|
|
|
87,833
|
|
|
19,563
|
|
|
6,031
|
|
|
1,154,101
|
|
|||||
Commercial and industrial
|
|
398,445
|
|
|
34,478
|
|
|
55,904
|
|
|
14,575
|
|
|
503,402
|
|
|||||
Direct financing leases, net
|
|
21,282
|
|
|
579
|
|
|
6,342
|
|
|
—
|
|
|
28,203
|
|
|||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Home equity and second mortgages
|
|
6,307
|
|
|
610
|
|
|
89
|
|
|
—
|
|
|
7,006
|
|
|||||
Other
|
|
22,517
|
|
|
—
|
|
|
—
|
|
|
147
|
|
|
22,664
|
|
|||||
Total consumer and other
|
|
28,824
|
|
|
610
|
|
|
89
|
|
|
147
|
|
|
29,670
|
|
|||||
Total gross loans and leases receivable
|
|
$
|
1,489,225
|
|
|
$
|
123,500
|
|
|
$
|
81,898
|
|
|
$
|
20,753
|
|
|
$
|
1,715,376
|
|
Category as a % of total portfolio
|
|
86.82
|
%
|
|
7.20
|
%
|
|
4.77
|
%
|
|
1.21
|
%
|
|
100.00
|
%
|
|
|
June 30, 2020
|
||||||||||||||||||||||
|
|
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
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
222,491
|
|
|
$
|
222,491
|
|
Non-owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
533,211
|
|
|
533,211
|
|
||||||
Land development
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
43,250
|
|
|
43,250
|
|
||||||
Construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
133,375
|
|
|
133,375
|
|
||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
244,496
|
|
|
244,496
|
|
||||||
1-4 family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
36,490
|
|
|
36,490
|
|
||||||
Commercial and industrial
|
|
5,965
|
|
|
1,320
|
|
|
—
|
|
|
7,285
|
|
|
758,920
|
|
|
766,205
|
|
||||||
Direct financing leases, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25,476
|
|
|
25,476
|
|
||||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Home equity and second mortgages
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,706
|
|
|
6,706
|
|
||||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29,610
|
|
|
29,610
|
|
||||||
Total
|
|
5,965
|
|
|
1,320
|
|
|
—
|
|
|
7,285
|
|
|
2,034,025
|
|
|
2,041,310
|
|
||||||
Non-accruing loans and leases
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owner occupied
|
|
—
|
|
|
—
|
|
|
3,550
|
|
|
3,550
|
|
|
3,953
|
|
|
7,503
|
|
||||||
Non-owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Land development
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,049
|
|
|
1,049
|
|
||||||
Construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
1-4 family
|
|
—
|
|
|
—
|
|
|
333
|
|
|
333
|
|
|
—
|
|
|
333
|
|
||||||
Commercial and industrial
|
|
76
|
|
|
283
|
|
|
7,416
|
|
|
7,775
|
|
|
7,259
|
|
|
15,034
|
|
||||||
Direct financing leases, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
49
|
|
|
49
|
|
||||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home equity and second mortgages
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Other
|
|
—
|
|
|
—
|
|
|
127
|
|
|
127
|
|
|
—
|
|
|
127
|
|
||||||
Total
|
|
76
|
|
|
283
|
|
|
11,426
|
|
|
11,785
|
|
|
12,310
|
|
|
24,095
|
|
||||||
Total loans and leases
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owner occupied
|
|
—
|
|
|
—
|
|
|
3,550
|
|
|
3,550
|
|
|
226,444
|
|
|
229,994
|
|
||||||
Non-owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
533,211
|
|
|
533,211
|
|
||||||
Land development
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
44,299
|
|
|
44,299
|
|
||||||
Construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
133,375
|
|
|
133,375
|
|
||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
244,496
|
|
|
244,496
|
|
||||||
1-4 family
|
|
—
|
|
|
—
|
|
|
333
|
|
|
333
|
|
|
36,490
|
|
|
36,823
|
|
||||||
Commercial and industrial
|
|
6,041
|
|
|
1,603
|
|
|
7,416
|
|
|
15,060
|
|
|
766,179
|
|
|
781,239
|
|
||||||
Direct financing leases, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25,525
|
|
|
25,525
|
|
||||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home equity and second mortgages
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,706
|
|
|
6,706
|
|
||||||
Other
|
|
—
|
|
|
—
|
|
|
127
|
|
|
127
|
|
|
29,610
|
|
|
29,737
|
|
||||||
Total
|
|
$
|
6,041
|
|
|
$
|
1,603
|
|
|
$
|
11,426
|
|
|
$
|
19,070
|
|
|
$
|
2,046,335
|
|
|
$
|
2,065,405
|
|
Percent of portfolio
|
|
0.29
|
%
|
|
0.08
|
%
|
|
0.55
|
%
|
|
0.92
|
%
|
|
99.08
|
%
|
|
100.00
|
%
|
|
|
December 31, 2019
|
||||||||||||||||||||||
|
|
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
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
222,582
|
|
|
$
|
222,582
|
|
Non-owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
516,652
|
|
|
516,652
|
|
||||||
Land development
|
|
—
|
|
|
990
|
|
|
—
|
|
|
990
|
|
|
48,581
|
|
|
49,571
|
|
||||||
Construction
|
|
309
|
|
|
—
|
|
|
—
|
|
|
309
|
|
|
108,748
|
|
|
109,057
|
|
||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
217,322
|
|
|
217,322
|
|
||||||
1-4 family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
33,026
|
|
|
33,026
|
|
||||||
Commercial and industrial
|
|
2,707
|
|
|
52
|
|
|
—
|
|
|
2,759
|
|
|
486,068
|
|
|
488,827
|
|
||||||
Direct financing leases, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28,203
|
|
|
28,203
|
|
||||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home equity and second mortgages
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,006
|
|
|
7,006
|
|
||||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22,517
|
|
|
22,517
|
|
||||||
Total
|
|
3,016
|
|
|
1,042
|
|
|
—
|
|
|
4,058
|
|
|
1,690,705
|
|
|
1,694,763
|
|
||||||
Non-accruing loans and leases
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owner occupied
|
|
—
|
|
|
—
|
|
|
342
|
|
|
342
|
|
|
3,690
|
|
|
4,032
|
|
||||||
Non-owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Land development
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,526
|
|
|
1,526
|
|
||||||
Construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
1-4 family
|
|
—
|
|
|
333
|
|
|
—
|
|
|
333
|
|
|
—
|
|
|
333
|
|
||||||
Commercial and industrial
|
|
4,368
|
|
|
2,717
|
|
|
3,123
|
|
|
10,208
|
|
|
4,367
|
|
|
14,575
|
|
||||||
Direct financing leases, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home equity and second mortgages
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Other
|
|
—
|
|
|
—
|
|
|
147
|
|
|
147
|
|
|
—
|
|
|
147
|
|
||||||
Total
|
|
4,368
|
|
|
3,050
|
|
|
3,612
|
|
|
11,030
|
|
|
9,583
|
|
|
20,613
|
|
||||||
Total loans and leases
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owner occupied
|
|
—
|
|
|
—
|
|
|
342
|
|
|
342
|
|
|
226,272
|
|
|
226,614
|
|
||||||
Non-owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
516,652
|
|
|
516,652
|
|
||||||
Land development
|
|
—
|
|
|
990
|
|
|
—
|
|
|
990
|
|
|
50,107
|
|
|
51,097
|
|
||||||
Construction
|
|
309
|
|
|
—
|
|
|
—
|
|
|
309
|
|
|
108,748
|
|
|
109,057
|
|
||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
217,322
|
|
|
217,322
|
|
||||||
1-4 family
|
|
—
|
|
|
333
|
|
|
—
|
|
|
333
|
|
|
33,026
|
|
|
33,359
|
|
||||||
Commercial and industrial
|
|
7,075
|
|
|
2,769
|
|
|
3,123
|
|
|
12,967
|
|
|
490,435
|
|
|
503,402
|
|
||||||
Direct financing leases, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28,203
|
|
|
28,203
|
|
||||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home equity and second mortgages
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,006
|
|
|
7,006
|
|
||||||
Other
|
|
—
|
|
|
—
|
|
|
147
|
|
|
147
|
|
|
22,517
|
|
|
22,664
|
|
||||||
Total
|
|
$
|
7,384
|
|
|
$
|
4,092
|
|
|
$
|
3,612
|
|
|
$
|
15,088
|
|
|
$
|
1,700,288
|
|
|
$
|
1,715,376
|
|
Percent of portfolio
|
|
0.43
|
%
|
|
0.24
|
%
|
|
0.21
|
%
|
|
0.88
|
%
|
|
99.12
|
%
|
|
100.00
|
%
|
|
|
June 30,
2020 |
|
December 31,
2019 |
||||
|
|
(In Thousands)
|
||||||
Non-accrual loans and leases
|
|
|
|
|
||||
Commercial real estate:
|
|
|
|
|
||||
Commercial real estate — owner occupied
|
|
$
|
7,503
|
|
|
$
|
4,032
|
|
Commercial real estate — non-owner occupied
|
|
—
|
|
|
—
|
|
||
Land development
|
|
1,049
|
|
|
1,526
|
|
||
Construction
|
|
—
|
|
|
—
|
|
||
Multi-family
|
|
—
|
|
|
—
|
|
||
1-4 family
|
|
333
|
|
|
333
|
|
||
Total non-accrual commercial real estate
|
|
8,885
|
|
|
5,891
|
|
||
Commercial and industrial
|
|
15,034
|
|
|
14,575
|
|
||
Direct financing leases, net
|
|
49
|
|
|
—
|
|
||
Consumer and other:
|
|
|
|
|
||||
Home equity and second mortgages
|
|
—
|
|
|
—
|
|
||
Other
|
|
127
|
|
|
147
|
|
||
Total non-accrual consumer and other loans
|
|
127
|
|
|
147
|
|
||
Total non-accrual loans and leases
|
|
24,095
|
|
|
20,613
|
|
||
Foreclosed properties, net
|
|
1,389
|
|
|
2,919
|
|
||
Total non-performing assets
|
|
25,484
|
|
|
23,532
|
|
||
Performing troubled debt restructurings
|
|
49
|
|
|
140
|
|
||
Total impaired assets
|
|
$
|
25,533
|
|
|
$
|
23,672
|
|
|
|
June 30,
2020 |
|
December 31,
2019 |
||
Total non-accrual loans and leases to gross loans and leases
|
|
1.17
|
%
|
|
1.20
|
%
|
Total non-performing assets to total gross loans and leases plus foreclosed properties, net
|
|
1.23
|
|
|
1.37
|
|
Total non-performing assets to total assets
|
|
1.03
|
|
|
1.12
|
|
Allowance for loan and lease losses to gross loans and leases
|
|
1.33
|
|
|
1.14
|
|
Allowance for loan and lease losses to non-accrual loans and leases
|
|
113.98
|
|
|
94.70
|
|
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||||||||
|
|
2020
|
||||||||||||||||||||
|
|
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
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
2
|
|
|
$
|
299
|
|
|
$
|
272
|
|
Commercial and industrial
|
|
1
|
|
|
4,986
|
|
|
4,986
|
|
|
3
|
|
|
6,007
|
|
|
5,756
|
|
||||
Total
|
|
1
|
|
|
$
|
4,986
|
|
|
$
|
4,986
|
|
|
5
|
|
|
$
|
6,306
|
|
|
$
|
6,028
|
|
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||||||||
|
|
2019
|
||||||||||||||||||||
|
|
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 and industrial
|
|
9
|
|
|
$
|
5,281
|
|
|
$
|
5,281
|
|
|
13
|
|
|
$
|
7,359
|
|
|
$
|
7,284
|
|
|
|
As of and for the Six Months Ended June 30, 2020
|
|||||||||||||||||||||||||||||
|
|
Recorded
Investment(1) |
|
Unpaid
Principal Balance |
|
Impairment
Reserve |
|
Average
Recorded Investment(2) |
|
Foregone
Interest Income |
|
Interest
Income Recognized |
|
Net
Foregone Interest Income |
|||||||||||||||||
|
|
(In Thousands)
|
|||||||||||||||||||||||||||||
With no impairment reserve recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Owner occupied
|
|
$
|
3,856
|
|
|
$
|
3,856
|
|
|
$
|
—
|
|
|
$
|
4,577
|
|
|
$
|
86
|
|
|
$
|
72
|
|
|
$
|
14
|
|
|||
Non-owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
53
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Land development
|
|
1,049
|
|
|
5,346
|
|
|
—
|
|
|
1,442
|
|
|
19
|
|
|
—
|
|
|
19
|
|
||||||||||
Construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
1-4 family
|
|
382
|
|
|
387
|
|
|
—
|
|
|
433
|
|
|
21
|
|
|
70
|
|
|
(49
|
)
|
||||||||||
Commercial and industrial
|
|
5,328
|
|
|
7,273
|
|
|
—
|
|
|
14,291
|
|
|
550
|
|
|
316
|
|
|
234
|
|
||||||||||
Direct financing leases, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Home equity and second mortgages
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Other
|
|
127
|
|
|
794
|
|
|
—
|
|
|
137
|
|
|
22
|
|
|
—
|
|
|
22
|
|
||||||||||
Total
|
|
10,742
|
|
|
17,656
|
|
|
—
|
|
|
20,937
|
|
|
698
|
|
|
458
|
|
|
240
|
|
||||||||||
With impairment reserve recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Owner occupied
|
|
3,647
|
|
|
5,034
|
|
|
3,052
|
|
|
1,469
|
|
|
201
|
|
|
—
|
|
|
201
|
|
||||||||||
Non-owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Land development
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
|||||||
Construction
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
|||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
1-4 family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Commercial and industrial
|
|
9,706
|
|
|
11,154
|
|
|
2,847
|
|
|
1,437
|
|
|
213
|
|
|
—
|
|
|
213
|
|
||||||||||
Direct financing leases, net
|
|
49
|
|
|
49
|
|
|
25
|
|
|
4
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||||||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Home equity and second mortgages
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Total
|
|
13,402
|
|
|
16,237
|
|
|
5,924
|
|
|
2,910
|
|
|
416
|
|
|
—
|
|
|
416
|
|
||||||||||
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Owner occupied
|
|
7,503
|
|
|
8,890
|
|
|
3,052
|
|
|
6,046
|
|
|
287
|
|
|
72
|
|
|
215
|
|
||||||||||
Non-owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
53
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Land development
|
|
1,049
|
|
|
5,346
|
|
|
—
|
|
|
1,442
|
|
|
19
|
|
|
—
|
|
|
19
|
|
||||||||||
Construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
1-4 family
|
|
382
|
|
|
387
|
|
|
—
|
|
|
433
|
|
|
21
|
|
|
70
|
|
|
(49
|
)
|
||||||||||
Commercial and industrial
|
|
15,034
|
|
|
18,427
|
|
|
2,847
|
|
|
15,728
|
|
|
763
|
|
|
316
|
|
|
447
|
|
||||||||||
Direct financing leases, net
|
|
49
|
|
|
49
|
|
|
25
|
|
|
8
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||||||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Home equity and second mortgages
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||
Other
|
|
127
|
|
|
794
|
|
|
—
|
|
|
137
|
|
|
22
|
|
|
—
|
|
|
22
|
|
||||||||||
Grand total
|
|
$
|
24,144
|
|
|
$
|
33,893
|
|
|
$
|
5,924
|
|
|
$
|
23,847
|
|
|
$
|
1,114
|
|
|
$
|
458
|
|
|
$
|
656
|
|
(1)
|
The recorded investment represents the unpaid principal balance net of any partial charge-offs.
|
(2)
|
Average recorded investment is calculated primarily using daily average balances.
|
|
|
As of and for the Year Ended December 31, 2019
|
||||||||||||||||||||||||||
|
|
Recorded
Investment(1)
|
|
Unpaid
Principal
Balance
|
|
Impairment
Reserve
|
|
Average
Recorded
Investment(2)
|
|
Foregone
Interest
Income
|
|
Interest
Income
Recognized
|
|
Net
Foregone
Interest
Income
|
||||||||||||||
|
|
(In Thousands)
|
||||||||||||||||||||||||||
With no impairment reserve recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Owner occupied
|
|
$
|
387
|
|
|
$
|
387
|
|
|
$
|
—
|
|
|
$
|
3,285
|
|
|
$
|
64
|
|
|
$
|
355
|
|
|
$
|
(291
|
)
|
Non-owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
58
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|||||||
Land development
|
|
1,526
|
|
|
5,823
|
|
|
—
|
|
|
1,843
|
|
|
52
|
|
|
6
|
|
|
46
|
|
|||||||
Construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
1-4 family
|
|
473
|
|
|
478
|
|
|
—
|
|
|
356
|
|
|
19
|
|
|
46
|
|
|
(27
|
)
|
|||||||
Commercial and industrial
|
|
4,779
|
|
|
6,549
|
|
|
—
|
|
|
14,479
|
|
|
1,073
|
|
|
379
|
|
|
694
|
|
|||||||
Direct financing leases, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity and second mortgages
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
(7
|
)
|
|||||||
Other
|
|
147
|
|
|
813
|
|
|
—
|
|
|
191
|
|
|
48
|
|
|
—
|
|
|
48
|
|
|||||||
Total
|
|
7,312
|
|
|
14,050
|
|
|
—
|
|
|
20,212
|
|
|
1,257
|
|
|
793
|
|
|
464
|
|
|||||||
With impairment reserve recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Owner occupied
|
|
3,645
|
|
|
5,004
|
|
|
1,082
|
|
|
1,511
|
|
|
414
|
|
|
—
|
|
|
414
|
|
|||||||
Non-owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Land development
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
1-4 family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Commercial and industrial
|
|
9,796
|
|
|
11,179
|
|
|
2,283
|
|
|
2,367
|
|
|
1,022
|
|
|
—
|
|
|
1,022
|
|
|||||||
Direct financing leases, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity and second mortgages
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Total
|
|
13,441
|
|
|
16,183
|
|
|
3,365
|
|
|
3,878
|
|
|
1,436
|
|
|
—
|
|
|
1,436
|
|
|||||||
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Owner occupied
|
|
4,032
|
|
|
5,391
|
|
|
1,082
|
|
|
4,796
|
|
|
478
|
|
|
355
|
|
|
123
|
|
|||||||
Non-owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
58
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|||||||
Land development
|
|
1,526
|
|
|
5,823
|
|
|
—
|
|
|
1,843
|
|
|
52
|
|
|
6
|
|
|
46
|
|
|||||||
Construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
1-4 family
|
|
473
|
|
|
478
|
|
|
—
|
|
|
356
|
|
|
19
|
|
|
46
|
|
|
(27
|
)
|
|||||||
Commercial and industrial
|
|
14,575
|
|
|
17,728
|
|
|
2,283
|
|
|
16,846
|
|
|
2,095
|
|
|
379
|
|
|
1,716
|
|
|||||||
Direct financing leases, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Consumer and other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity and second mortgages
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
(7
|
)
|
|||||||
Other
|
|
147
|
|
|
813
|
|
|
—
|
|
|
191
|
|
|
48
|
|
|
—
|
|
|
48
|
|
|||||||
Grand total
|
|
$
|
20,753
|
|
|
$
|
30,233
|
|
|
$
|
3,365
|
|
|
$
|
24,090
|
|
|
$
|
2,693
|
|
|
$
|
793
|
|
|
$
|
1,900
|
|
(1)
|
The recorded investment represents the unpaid principal balance net of any partial charge-offs.
|
(2)
|
Average recorded investment is calculated primarily using daily average balances.
|
|
|
As of and for the Three Months Ended June 30, 2020
|
||||||||||||||
|
|
Commercial
Real Estate
|
|
Commercial
and
Industrial
|
|
Consumer
and Other
|
|
Total
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Beginning balance
|
|
$
|
12,597
|
|
|
$
|
9,322
|
|
|
$
|
829
|
|
|
$
|
22,748
|
|
Charge-offs
|
|
(27
|
)
|
|
(784
|
)
|
|
(6
|
)
|
|
(817
|
)
|
||||
Recoveries
|
|
2
|
|
|
62
|
|
|
—
|
|
|
64
|
|
||||
Net charge-offs
|
|
(25
|
)
|
|
(722
|
)
|
|
(6
|
)
|
|
(753
|
)
|
||||
Provision for loan and lease losses
|
|
3,866
|
|
|
1,579
|
|
|
24
|
|
|
5,469
|
|
||||
Ending balance
|
|
$
|
16,438
|
|
|
$
|
10,179
|
|
|
$
|
847
|
|
|
$
|
27,464
|
|
|
|
As of and for the Three Months Ended June 30, 2019
|
||||||||||||||
|
|
Commercial
Real Estate
|
|
Commercial
and
Industrial
|
|
Consumer
and Other
|
|
Total
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Beginning balance
|
|
$
|
11,205
|
|
|
$
|
8,485
|
|
|
$
|
759
|
|
|
$
|
20,449
|
|
Charge-offs
|
|
—
|
|
|
(13
|
)
|
|
(2
|
)
|
|
(15
|
)
|
||||
Recoveries
|
|
72
|
|
|
72
|
|
|
25
|
|
|
169
|
|
||||
Net recoveries
|
|
72
|
|
|
59
|
|
|
23
|
|
|
154
|
|
||||
Provision for loan and lease losses
|
|
(8
|
)
|
|
(652
|
)
|
|
(124
|
)
|
|
(784
|
)
|
||||
Ending balance
|
|
$
|
11,269
|
|
|
$
|
7,892
|
|
|
$
|
658
|
|
|
$
|
19,819
|
|
|
|
As of and for the Six Months Ended June 30, 2020
|
||||||||||||||
|
|
Commercial
Real Estate
|
|
Commercial
and
Industrial
|
|
Consumer
and Other
|
|
Total
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Beginning balance
|
|
$
|
10,852
|
|
|
$
|
8,078
|
|
|
$
|
590
|
|
|
$
|
19,520
|
|
Charge-offs
|
|
(27
|
)
|
|
(909
|
)
|
|
(12
|
)
|
|
(948
|
)
|
||||
Recoveries
|
|
3
|
|
|
238
|
|
|
—
|
|
|
241
|
|
||||
Net charge-offs
|
|
(24
|
)
|
|
(671
|
)
|
|
(12
|
)
|
|
(707
|
)
|
||||
Provision for loan and lease losses
|
|
5,610
|
|
|
2,772
|
|
|
269
|
|
|
8,651
|
|
||||
Ending balance
|
|
$
|
16,438
|
|
|
$
|
10,179
|
|
|
$
|
847
|
|
|
$
|
27,464
|
|
|
|
As of and for the Six Months Ended June 30, 2019
|
||||||||||||||
|
|
Commercial
Real Estate
|
|
Commercial
and
Industrial
|
|
Consumer
and Other
|
|
Total
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Beginning balance
|
|
$
|
11,662
|
|
|
$
|
8,079
|
|
|
$
|
684
|
|
|
$
|
20,425
|
|
Charge-offs
|
|
—
|
|
|
(61
|
)
|
|
(2
|
)
|
|
(63
|
)
|
||||
Recoveries
|
|
73
|
|
|
92
|
|
|
28
|
|
|
193
|
|
||||
Net recoveries
|
|
73
|
|
|
31
|
|
|
26
|
|
|
130
|
|
||||
Provision for loan and lease losses
|
|
(466
|
)
|
|
(218
|
)
|
|
(52
|
)
|
|
(736
|
)
|
||||
Ending balance
|
|
$
|
11,269
|
|
|
$
|
7,892
|
|
|
$
|
658
|
|
|
$
|
19,819
|
|
|
|
As of June 30, 2020
|
||||||||||||||
|
|
Commercial
Real Estate
|
|
Commercial
and
Industrial
|
|
Consumer
and Other
|
|
Total
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Allowance for loan and lease losses:
|
|
|
|
|
|
|
|
|
||||||||
Collectively evaluated for impairment
|
|
$
|
13,386
|
|
|
$
|
7,307
|
|
|
$
|
847
|
|
|
$
|
21,540
|
|
Individually evaluated for impairment
|
|
3,052
|
|
|
2,872
|
|
|
—
|
|
|
5,924
|
|
||||
Total
|
|
$
|
16,438
|
|
|
$
|
10,179
|
|
|
$
|
847
|
|
|
$
|
27,464
|
|
Loans and lease receivables:
|
|
|
|
|
|
|
|
|
||||||||
Collectively evaluated for impairment
|
|
$
|
1,213,264
|
|
|
$
|
791,681
|
|
|
$
|
36,316
|
|
|
$
|
2,041,261
|
|
Individually evaluated for impairment
|
|
8,934
|
|
|
15,083
|
|
|
127
|
|
|
24,144
|
|
||||
Total
|
|
$
|
1,222,198
|
|
|
$
|
806,764
|
|
|
$
|
36,443
|
|
|
$
|
2,065,405
|
|
|
|
As of December 31, 2019
|
||||||||||||||
|
|
Commercial
Real Estate
|
|
Commercial
and
Industrial
|
|
Consumer
and Other
|
|
Total
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Allowance for loan and lease losses:
|
|
|
|
|
|
|
|
|
||||||||
Collectively evaluated for impairment
|
|
$
|
9,770
|
|
|
$
|
5,795
|
|
|
$
|
590
|
|
|
$
|
16,155
|
|
Individually evaluated for impairment
|
|
1,082
|
|
|
2,283
|
|
|
—
|
|
|
3,365
|
|
||||
Total
|
|
$
|
10,852
|
|
|
$
|
8,078
|
|
|
$
|
590
|
|
|
$
|
19,520
|
|
Loans and lease receivables:
|
|
|
|
|
|
|
|
|
||||||||
Collectively evaluated for impairment
|
|
$
|
1,148,070
|
|
|
$
|
517,030
|
|
|
$
|
29,523
|
|
|
$
|
1,694,623
|
|
Individually evaluated for impairment
|
|
6,031
|
|
|
14,575
|
|
|
147
|
|
|
20,753
|
|
||||
Total
|
|
$
|
1,154,101
|
|
|
$
|
531,605
|
|
|
$
|
29,670
|
|
|
$
|
1,715,376
|
|
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Operating lease cost
|
|
$
|
372
|
|
|
$
|
391
|
|
|
$
|
745
|
|
|
$
|
781
|
|
Short-term lease cost
|
|
126
|
|
|
101
|
|
|
253
|
|
|
238
|
|
||||
Variable lease cost
|
|
48
|
|
|
74
|
|
|
122
|
|
|
142
|
|
||||
Less: sublease income
|
|
(28
|
)
|
|
—
|
|
|
(56
|
)
|
|
—
|
|
||||
Total lease cost, net
|
|
$
|
518
|
|
|
$
|
566
|
|
|
$
|
1,064
|
|
|
$
|
1,161
|
|
|
|
June 30, 2020
|
|
December 31, 2019
|
||
Weighted-average remaining lease term (in years)
|
|
5.87
|
|
|
6.56
|
|
Weighted-average discount rate
|
|
3.10
|
%
|
|
3.09
|
%
|
(In Thousands)
|
|
||
2020
|
$
|
767
|
|
2021
|
1,382
|
|
|
2022
|
1,373
|
|
|
2023
|
1,015
|
|
|
2024
|
756
|
|
|
Thereafter
|
2,307
|
|
|
Total undiscounted cash flows
|
7,600
|
|
|
Discount on cash flows
|
(723
|
)
|
|
Total lease liability
|
$
|
6,877
|
|
|
|
June 30, 2020
|
|
December 31, 2019
|
||||
|
|
(In Thousands)
|
||||||
Accrued interest receivable
|
|
$
|
7,207
|
|
|
$
|
5,760
|
|
Net deferred tax asset
|
|
5,436
|
|
|
5,353
|
|
||
Investment in historic development entities
|
|
2,345
|
|
|
2,216
|
|
||
Investment in a community development entity
|
|
5,316
|
|
|
5,571
|
|
||
Investment in limited partnerships
|
|
4,973
|
|
|
4,476
|
|
||
Investment in Trust II
|
|
315
|
|
|
315
|
|
||
Fair value of interest rate swaps
|
|
58,808
|
|
|
18,346
|
|
||
Prepaid expenses
|
|
2,227
|
|
|
2,285
|
|
||
Other assets
|
|
8,464
|
|
|
4,184
|
|
||
Total accrued interest receivable and other assets
|
|
$
|
95,091
|
|
|
$
|
48,506
|
|
|
|
June 30, 2020
|
|
December 31, 2019
|
||||||||||||||||||
|
|
Balance
|
|
Average
Balance
|
|
Average Rate
|
|
Balance
|
|
Average
Balance
|
|
Average Rate
|
||||||||||
|
|
(Dollars in Thousands)
|
||||||||||||||||||||
Non-interest-bearing transaction accounts
|
|
$
|
433,760
|
|
|
$
|
365,771
|
|
|
—
|
%
|
|
$
|
293,573
|
|
|
$
|
275,495
|
|
|
—
|
%
|
Interest-bearing transaction accounts
|
|
413,214
|
|
|
320,188
|
|
|
0.59
|
|
|
273,909
|
|
|
222,244
|
|
|
1.53
|
|
||||
Money market accounts
|
|
656,741
|
|
|
653,598
|
|
|
0.68
|
|
|
674,409
|
|
|
617,341
|
|
|
1.71
|
|
||||
Certificates of deposit
|
|
116,901
|
|
|
128,791
|
|
|
2.14
|
|
|
137,012
|
|
|
156,048
|
|
|
2.47
|
|
||||
Wholesale deposits
|
|
89,759
|
|
|
119,032
|
|
|
2.50
|
|
|
151,476
|
|
|
225,302
|
|
|
2.27
|
|
||||
Total deposits
|
|
$
|
1,710,375
|
|
|
$
|
1,587,380
|
|
|
0.76
|
|
|
$
|
1,530,379
|
|
|
$
|
1,496,430
|
|
|
1.53
|
|
|
|
June 30, 2020
|
|
December 31, 2019
|
||||||||||||||||||
|
|
Balance
|
|
Weighted Average
Balance
|
|
Weighted
Average Rate
|
|
Balance
|
|
Weighted Average
Balance
|
|
Weighted
Average Rate
|
||||||||||
|
|
(Dollars in Thousands)
|
||||||||||||||||||||
Federal funds purchased
|
|
$
|
—
|
|
|
$
|
143
|
|
|
0.69
|
%
|
|
$
|
—
|
|
|
$
|
59
|
|
|
2.45
|
%
|
Federal Reserve PPPLF
|
|
29,605
|
|
|
10,410
|
|
|
0.35
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
FHLB advances
|
|
411,000
|
|
|
367,604
|
|
|
1.55
|
|
|
295,000
|
|
|
286,464
|
|
|
2.17
|
|
||||
Other borrowings
|
|
675
|
|
|
675
|
|
|
8.09
|
|
|
675
|
|
|
675
|
|
|
8.11
|
|
||||
Subordinated notes payable(1)
|
|
23,727
|
|
|
23,715
|
|
|
5.95
|
|
|
23,707
|
|
|
24,502
|
|
|
7.45
|
|
||||
Junior subordinated notes
|
|
10,054
|
|
|
10,050
|
|
|
11.04
|
|
|
10,047
|
|
|
10,040
|
|
|
11.08
|
|
||||
|
|
$
|
475,061
|
|
|
$
|
412,597
|
|
|
2.01
|
|
|
$
|
329,429
|
|
|
$
|
321,740
|
|
|
2.87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term borrowings
|
|
$
|
202,500
|
|
|
|
|
|
|
$
|
118,500
|
|
|
|
|
|
||||||
Long-term borrowings
|
|
272,561
|
|
|
|
|
|
|
210,929
|
|
|
|
|
|
||||||||
|
|
$
|
475,061
|
|
|
|
|
|
|
$
|
329,429
|
|
|
|
|
|
(1)
|
Weighted average rate of subordinated notes payable reflects the accelerated amortization of subordinated debt issuance costs as a result of the early redemption of a subordinated note during the third quarter of 2019.
|
|
|
As of and for the Three Months Ended June 30,
|
|
As of and for the Six Months Ended June 30,
|
||||||||||||
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Balance at the beginning of the period
|
|
$
|
1,086
|
|
|
$
|
3,276
|
|
|
$
|
1,345
|
|
|
$
|
2,956
|
|
SBA recourse (benefit) provision
|
|
(30
|
)
|
|
113
|
|
|
(5
|
)
|
|
594
|
|
||||
Charge-offs, net
|
|
(49
|
)
|
|
(1,321
|
)
|
|
(333
|
)
|
|
(1,482
|
)
|
||||
Balance at the end of the period
|
|
$
|
1,007
|
|
|
$
|
2,068
|
|
|
$
|
1,007
|
|
|
$
|
2,068
|
|
|
|
June 30, 2020
|
||||||||||||||
|
|
Fair Value Measurements Using
|
|
|
||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Securities available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government agency securities - government-sponsored enterprises
|
|
$
|
—
|
|
|
$
|
21,970
|
|
|
$
|
—
|
|
|
$
|
21,970
|
|
Municipal securities
|
|
—
|
|
|
11,471
|
|
|
—
|
|
|
11,471
|
|
||||
Residential mortgage-backed securities - government issued
|
|
—
|
|
|
12,883
|
|
|
—
|
|
|
12,883
|
|
||||
Residential mortgage-backed securities - government-sponsored enterprises
|
|
—
|
|
|
104,089
|
|
|
—
|
|
|
104,089
|
|
||||
Commercial mortgage-backed securities - government issued
|
|
—
|
|
|
6,366
|
|
|
—
|
|
|
6,366
|
|
||||
Commercial mortgage-backed securities - government-sponsored enterprises
|
|
—
|
|
|
12,604
|
|
|
—
|
|
|
12,604
|
|
||||
Other securities
|
|
—
|
|
|
2,297
|
|
|
—
|
|
|
2,297
|
|
||||
Interest rate swaps
|
|
—
|
|
|
58,808
|
|
|
—
|
|
|
58,808
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
|
—
|
|
|
65,390
|
|
|
—
|
|
|
65,390
|
|
|
|
December 31, 2019
|
||||||||||||||
|
|
Fair Value Measurements Using
|
|
|
||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Securities available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government agency securities - government-sponsored enterprises
|
|
$
|
—
|
|
|
$
|
23,758
|
|
|
$
|
—
|
|
|
$
|
23,758
|
|
Municipal securities
|
|
—
|
|
|
160
|
|
|
—
|
|
|
160
|
|
||||
Residential mortgage-backed securities - government issued
|
|
—
|
|
|
16,348
|
|
|
—
|
|
|
16,348
|
|
||||
Residential mortgage-backed securities - government-sponsored enterprises
|
|
—
|
|
|
112,002
|
|
|
—
|
|
|
112,002
|
|
||||
Commercial mortgage-backed securities - government issued
|
|
—
|
|
|
6,663
|
|
|
—
|
|
|
6,663
|
|
||||
Commercial mortgage-backed securities - government-sponsored enterprises
|
|
—
|
|
|
11,967
|
|
|
—
|
|
|
11,967
|
|
||||
Other securities
|
|
—
|
|
|
2,235
|
|
|
—
|
|
|
2,235
|
|
||||
Interest rate swaps
|
|
—
|
|
|
18,346
|
|
|
—
|
|
|
18,346
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
|
—
|
|
|
20,885
|
|
|
—
|
|
|
20,885
|
|
|
|
June 30, 2020
|
||||||||||||||
|
|
Fair Value Measurements Using
|
|
|
||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Impaired loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13,203
|
|
|
$
|
13,203
|
|
Foreclosed properties
|
|
—
|
|
|
—
|
|
|
1,389
|
|
|
1,389
|
|
||||
Loan servicing rights
|
|
—
|
|
|
—
|
|
|
1,216
|
|
|
1,216
|
|
|
|
December 31, 2019
|
||||||||||||||
|
|
Fair Value Measurements Using
|
|
|
||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
|
(In Thousands)
|
||||||||||||||
Impaired loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
15,699
|
|
|
$
|
15,699
|
|
Foreclosed properties
|
|
—
|
|
|
—
|
|
|
2,919
|
|
|
2,919
|
|
||||
Loan servicing rights
|
|
—
|
|
|
—
|
|
|
1,195
|
|
|
1,195
|
|
|
|
June 30, 2020
|
||||||||||||||||||
|
|
Carrying
Amount
|
|
Fair Value
|
||||||||||||||||
|
|
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
|
|
(In Thousands)
|
||||||||||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
42,391
|
|
|
$
|
42,391
|
|
|
$
|
42,391
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Securities available-for-sale
|
|
171,680
|
|
|
171,680
|
|
|
—
|
|
|
171,680
|
|
|
—
|
|
|||||
Securities held-to-maturity
|
|
29,826
|
|
|
30,887
|
|
|
—
|
|
|
30,887
|
|
|
—
|
|
|||||
Loans held for sale
|
|
13,672
|
|
|
14,902
|
|
|
—
|
|
|
14,902
|
|
|
—
|
|
|||||
Loans and lease receivables, net
|
|
2,029,399
|
|
|
2,027,279
|
|
|
—
|
|
|
—
|
|
|
2,027,279
|
|
|||||
Federal Home Loan Bank stock
|
|
13,470
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|||||
Accrued interest receivable
|
|
7,207
|
|
|
7,207
|
|
|
7,207
|
|
|
—
|
|
|
—
|
|
|||||
Interest rate swaps
|
|
58,808
|
|
|
58,808
|
|
|
—
|
|
|
58,808
|
|
|
—
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
|
1,710,375
|
|
|
1,713,277
|
|
|
1,503,715
|
|
|
209,562
|
|
|
—
|
|
|||||
Federal Home Loan Bank advances and other borrowings
|
|
465,007
|
|
|
475,173
|
|
|
—
|
|
|
475,173
|
|
|
—
|
|
|||||
Junior subordinated notes
|
|
10,054
|
|
|
9,978
|
|
|
—
|
|
|
—
|
|
|
9,978
|
|
|||||
Accrued interest payable
|
|
2,012
|
|
|
2,012
|
|
|
2,012
|
|
|
—
|
|
|
—
|
|
|||||
Interest rate swaps
|
|
65,390
|
|
|
65,390
|
|
|
—
|
|
|
65,390
|
|
|
—
|
|
|||||
Off-balance sheet items:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Standby letters of credit
|
|
53
|
|
|
53
|
|
|
—
|
|
|
—
|
|
|
53
|
|
|
|
December 31, 2019
|
||||||||||||||||||
|
|
Carrying
Amount
|
|
Fair Value
|
||||||||||||||||
|
|
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
|
|
(In Thousands)
|
||||||||||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
67,102
|
|
|
$
|
67,102
|
|
|
$
|
61,202
|
|
|
$
|
5,900
|
|
|
$
|
—
|
|
Securities available-for-sale
|
|
173,133
|
|
|
173,133
|
|
|
—
|
|
|
173,133
|
|
|
—
|
|
|||||
Securities held-to-maturity
|
|
32,700
|
|
|
33,188
|
|
|
—
|
|
|
33,188
|
|
|
—
|
|
|||||
Loans held for sale
|
|
5,205
|
|
|
5,673
|
|
|
—
|
|
|
5,673
|
|
|
—
|
|
|||||
Loans and lease receivables, net
|
|
1,695,115
|
|
|
1,706,201
|
|
|
—
|
|
|
—
|
|
|
1,706,201
|
|
|||||
Federal Home Loan Bank stock
|
|
7,953
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|||||
Accrued interest receivable
|
|
5,760
|
|
|
5,760
|
|
|
5,760
|
|
|
—
|
|
|
—
|
|
|||||
Interest rate swaps
|
|
18,346
|
|
|
18,346
|
|
|
—
|
|
|
18,346
|
|
|
—
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
|
1,530,379
|
|
|
1,532,517
|
|
|
1,241,891
|
|
|
290,626
|
|
|
—
|
|
|||||
Federal Home Loan Bank advances and other borrowings
|
|
319,382
|
|
|
319,507
|
|
|
—
|
|
|
319,507
|
|
|
—
|
|
|||||
Junior subordinated notes
|
|
10,047
|
|
|
9,970
|
|
|
—
|
|
|
—
|
|
|
9,970
|
|
|||||
Accrued interest payable
|
|
2,882
|
|
|
2,282
|
|
|
2,282
|
|
|
—
|
|
|
—
|
|
|||||
Interest rate swaps
|
|
20,885
|
|
|
20,885
|
|
|
—
|
|
|
20,885
|
|
|
—
|
|
|||||
Off-balance sheet items:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Standby letters of credit
|
|
63
|
|
|
63
|
|
|
—
|
|
|
—
|
|
|
63
|
|
|
|
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
|
|
|
|
|
|
|
|
|
||||
June 30, 2020
|
|
Accrued interest receivable and other assets
|
|
$
|
58,808
|
|
|
Accrued interest payable and other liabilities
|
|
$
|
58,808
|
|
December 31, 2019
|
|
Accrued interest receivable and other assets
|
|
$
|
18,346
|
|
|
Accrued interest payable and other liabilities
|
|
$
|
18,346
|
|
Derivatives designated as hedging instruments
|
|
|
|
|
|
|
|
|
||||
June 30, 2020
|
|
Accumulated other comprehensive income (1)
|
|
$
|
6,582
|
|
|
Accrued interest payable and other liabilities
|
|
$
|
6,582
|
|
December 31, 2019
|
|
Accumulated other comprehensive income (1)
|
|
$
|
2,539
|
|
|
Accrued interest payable and other liabilities
|
|
$
|
2,539
|
|
(1)
|
The fair value of derivatives designated as hedging instruments included in accumulated other comprehensive income represent pre-tax amounts, which are reported net of tax on the unaudited Consolidated Balance Sheets.
|
|
|
As of June 30, 2020
|
|||||||||||||||||||||||||
|
|
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)
|
|||||||||||||||||||||||||
Total capital
(to risk-weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Consolidated
|
|
$
|
247,276
|
|
|
11.97
|
%
|
|
$
|
165,275
|
|
|
8.00
|
%
|
|
$
|
216,924
|
|
|
10.50
|
%
|
|
N/A
|
|
|
N/A
|
|
First Business Bank
|
|
238,138
|
|
|
11.60
|
|
|
164,225
|
|
|
8.00
|
|
|
215,545
|
|
|
10.50
|
|
|
205,281
|
|
|
10.00
|
%
|
|||
Tier 1 capital
(to risk-weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Consolidated
|
|
$
|
197,692
|
|
|
9.57
|
%
|
|
$
|
123,956
|
|
|
6.00
|
%
|
|
$
|
175,605
|
|
|
8.50
|
%
|
|
N/A
|
|
|
N/A
|
|
First Business Bank
|
|
212,443
|
|
|
10.35
|
|
|
123,169
|
|
|
6.00
|
|
|
174,489
|
|
|
8.50
|
|
|
164,225
|
|
|
8.00
|
|
|||
Common equity tier 1 capital
(to risk-weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Consolidated
|
|
$
|
187,638
|
|
|
9.08
|
%
|
|
$
|
92,967
|
|
|
4.50
|
%
|
|
$
|
144,616
|
|
|
7.00
|
%
|
|
N/A
|
|
|
N/A
|
|
First Business Bank
|
|
212,443
|
|
|
10.35
|
|
|
92,376
|
|
|
4.50
|
|
|
143,697
|
|
|
7.00
|
|
|
133,433
|
|
|
6.50
|
|
|||
Tier 1 leverage capital
(to adjusted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Consolidated
|
|
$
|
197,692
|
|
|
8.29
|
%
|
|
$
|
95,431
|
|
|
4.00
|
%
|
|
$
|
95,431
|
|
|
4.00
|
%
|
|
N/A
|
|
|
N/A
|
|
First Business Bank
|
|
212,443
|
|
|
8.96
|
|
|
94,856
|
|
|
4.00
|
|
|
94,856
|
|
|
4.00
|
|
|
118,570
|
|
|
5.00
|
|
|
|
As of December 31, 2019
|
|||||||||||||||||||||||||
|
|
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)
|
|||||||||||||||||||||||||
Total capital
(to risk-weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Consolidated
|
|
$
|
239,029
|
|
|
12.01
|
%
|
|
$
|
159,185
|
|
|
8.00
|
%
|
|
$
|
208,930
|
|
|
10.50
|
%
|
|
N/A
|
|
|
N/A
|
|
First Business Bank
|
|
233,181
|
|
|
11.79
|
|
|
158,177
|
|
|
8.00
|
|
|
207,607
|
|
|
10.50
|
|
|
197,721
|
|
|
10.00
|
%
|
|||
Tier 1 capital
(to risk-weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Consolidated
|
|
$
|
194,456
|
|
|
9.77
|
%
|
|
$
|
119,388
|
|
|
6.00
|
%
|
|
$
|
169,134
|
|
|
8.50
|
%
|
|
N/A
|
|
|
N/A
|
|
First Business Bank
|
|
212,315
|
|
|
10.74
|
|
|
118,633
|
|
|
6.00
|
|
|
168,063
|
|
|
8.50
|
|
|
158,177
|
|
|
8.00
|
|
|||
Common equity tier 1 capital
(to risk-weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Consolidated
|
|
$
|
184,409
|
|
|
9.27
|
%
|
|
$
|
89,541
|
|
|
4.50
|
%
|
|
$
|
139,286
|
|
|
7.00
|
%
|
|
N/A
|
|
|
N/A
|
|
First Business Bank
|
|
212,315
|
|
|
10.74
|
|
|
88,974
|
|
|
4.50
|
|
|
138,405
|
|
|
7.00
|
|
|
128,519
|
|
|
6.50
|
|
|||
Tier 1 leverage capital
(to adjusted assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Consolidated
|
|
$
|
194,456
|
|
|
9.27
|
%
|
|
$
|
83,950
|
|
|
4.00
|
%
|
|
$
|
83,950
|
|
|
4.00
|
%
|
|
N/A
|
|
|
N/A
|
|
First Business Bank
|
|
212,315
|
|
|
10.18
|
|
|
83,414
|
|
|
4.00
|
|
|
83,414
|
|
|
4.00
|
|
|
104,268
|
|
|
5.00
|
|
•
|
Adverse changes in the economy or business conditions, either nationally or in our markets, including, without limitation, the adverse effects of the COVID-19 pandemic on the global, national, and local economy.
|
•
|
The effect of the COVID-19 pandemic on the Corporation’s credit quality, revenue, and business operations.
|
•
|
Competitive pressures among depository and other financial institutions nationally and 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 our internet banking activities.
|
•
|
Failure to comply with the applicable SBA regulations in order to maintain the eligibility of the guaranteed portions of SBA loans.
|
•
|
Net income totaled $3.3 million, or diluted earnings per share of $0.38, for the three months ended June 30, 2020, compared to $6.6 million, or diluted earnings per share of $0.75, for the same period in 2019. Net income totaled $6.6 million, or diluted earnings per share of $0.77, for the six months ended June 30, 2020, compared to $12.5 million, or diluted earnings per share of $1.43, for the same period in 2019.
|
•
|
During the second quarter of 2020, the Corporation disbursed $327.9 million in Paycheck Protection Program (“PPP”) loans and received processing fee income from the Small Business Administration (“SBA”) of $8.7 million. The processing fee income is deferred and recognized over the contractual life of the loan, or accelerated at forgiveness. During the second quarter of 2020, $859,000 was recognized in interest income.
|
•
|
Record pre-tax, pre-provision adjusted earnings, which excludes certain one-time and discrete items, totaled $9.8 million for the three months ended June 30, 2020, up 32.4% for the same period in 2019. Pre-tax, pre-provision adjusted return on average assets was 1.61% for the three months ended June 30, 2020, compared 1.46% for the same period in 2019. Pre-tax, pre-provision adjusted earnings totaled $17.3 million for the six months ended June 30, 2020, up 19.3% for the same period in 2019. Pre-tax, pre-provision adjusted return on average assets was 1.53% for the six months ended June 30, 2020, compared 1.46% for the same period in 2019.
|
•
|
Period-end gross loans and leases receivable were $2.057 billion as of June 30, 2020, up $342.2 million from December 31, 2019. Line of credit utilization was significantly impacted by PPP loan proceeds and was $212.6 million as of June 30, 2020, down from $281.4 million at December 31, 2019. Gross loans and leases receivable, excluding PPP loans and lines of credit, were $1.516 billion as of June 30, 2020, up 11.6% annualized, from December 31, 2019.
|
•
|
The allowance for loan and lease losses increased $7.9 million, or 40.7%, compared to December 31, 2019 primarily due to a $4.3 million and $2.1 million increase in the general and specific reserves, respectively, driven by the COVID-19 pandemic. The allowance for loan and lease losses increased to 1.33% of total loans, compared to1.14% at December 31, 2019. Excluding PPP loans, the allowance for loan and lease losses increased to 1.58% of total loans as of June 30, 2020.
|
•
|
Provision for loan and lease losses totaled $5.5 million for the three months ended June 30, 2020, compared to a provision benefit of $784,000 for the same period in 2019. Provision for loan and lease losses totaled $8.7 million for the six months ended June 30, 2020, compared to a provision benefit of $736,000 for the same period in 2019.
|
•
|
Robust liquidity position includes record in-market deposits of $1.621 billion, total deposits of $1.710 billion, and on-balance sheet liquidity of $611.6 million, defined as total short-term investments, unencumbered securities available-for-sale, and unencumbered pledged loans. In-market deposit balances were inflated due to PPP loan proceeds.
|
•
|
Net interest margin was 3.34% and 3.39% for the three and six months ended June 30, 2020, respectively, compared to 3.52% and 3.66% for the three and six months ended June 30, 2019, respectively. Adjusted net interest margin, which excludes certain one-time and discrete items, was 3.33% for the three and six months ended June 30, 2020, respectively, compared to 3.31% and 3.33% for the three and six months ended June 30, 2019, respectively.
|
•
|
Fees in lieu of interest, defined as prepayment fees, asset-based loan fees, non-accrual interest, and loan fee amortization, totaled $2.3 million and $3.1 million for the three and six months ended June 30, 2020, respectively, compared to $1.2 million and $3.5 million for the three and six months ended June 30, 2019, respectively.
|
•
|
Top line revenue, defined as net interest income plus non-interest income, totaled $25.2 million for the three months ended June 30, 2020, up 11.3% from the same period in 2019. Top line revenue totaled $48.7 million for the six months ended June 30, 2020, up 8.0% from the same period in 2019.
|
•
|
Non-interest income totaled $6.3 million, or 25.1% of total revenue, or the three months ended June 30, 2020, surpassing the Corporation’s goal of 25% for the fifth consecutive quarter. Non-interest income totaled $12.7 million, or 26.2% of total revenue, for the six months ended June 30, 2020.
|
•
|
Non-interest expense was $18.3 million and $34.5 million for the three and six months ended June 30, 2020, respectively, compared to $17.5 million and $35.2 million for the three and six months ended June 30, 2019, respectively. Operating expense, which excludes certain one-time and discrete items, totaled $15.4 million and $31.3 million for the three and six months ended June 30, 2020, respectively, compared to $15.3 million and $30.5 million for the three and six months ended June 30, 2019, respectively.
|
•
|
The Corporation incurred a $744,000 loss on the early extinguishment of $59.5 million in Federal Home Loan Bank (“FHLB”) term advances late in the second quarter of 2020, as the Corporation lowered wholesale funding costs and improved the Corporation’s funding position with the expectation of a low interest rate environment for an extended period of time.
|
•
|
The efficiency ratio improved to 61.22% and 64.36% for the three and six months ended June 30, 2020, respectively, down from 67.41% and 67.72% for the three and six months ended June 30, 2019, respectively.
|
•
|
Historic tax credit programs contributed $690,000, or $0.08 per share, during the three months ended June 30, 2020, compared to $446,000, or $0.05 per share for the same period in 2019.
|
|
|
As of
|
||
|
|
June 30, 2020
|
||
|
|
(In Thousands)
|
||
Short-term investments
|
|
$
|
27,839
|
|
PPPLF availability
|
|
298,327
|
|
|
Collateral value of unencumbered pledged loans (FHLB borrowing availability)
|
|
178,587
|
|
|
Market value of unencumbered securities (Fed Discount Window and FHLB borrowing availability)
|
|
106,808
|
|
|
Total sources of liquidity
|
|
$
|
611,561
|
|
•
|
Total capital to risk-weighted assets at June 30, 2020, was 11.97%, tier 1 capital to risk-weighted assets was 9.57%, tier 1 leverage capital to adjusted average assets was 8.29%, and common equity tier 1 capital to risk-weighted assets was 9.08%. Tangible common equity to tangible assets was 7.56%. Excluding PPP loans, tier 1 leverage capital to adjusted average assets and tangible common equity to tangible assets were 9.19% and 8.72%, respectively.
|
•
|
Management suspended the Corporation’s stock repurchase program in March 2020 due to the uncertainty surrounding the COVID-19 pandemic. As of March 16, 2020, the Corporation had repurchased 141,137 shares of its common stock at a weighted average price of $24.62 per share, for a total value of $3.5 million. The Corporation has $1.5 million of buyback authority remaining.
|
•
|
As previously announced, during the second quarter of 2020, the Corporation’s Board of Directors declared a regular quarterly dividend of $0.165 per share. The dividend was paid on May 14, 2020 to stockholders of record at the close of business on May 4, 2020. Measured against second quarter 2020 diluted earnings per share of $0.38, the dividend represents a 43.4% payout ratio. The Board of Directors routinely considers dividend declarations as part of its normal course of business.
|
|
|
As of
|
|||||||||||||
|
|
June 30, 2020
|
|||||||||||||
|
|
|
|
|
|
Collateral Type
|
|||||||||
Industries Description
|
|
Balance
|
|
% Deferred of Total Industry
|
|
Real Estate
|
|
Non Real Estate
|
|||||||
|
|
(Dollars in Thousands)
|
|||||||||||||
Real Estate and Rental and Leasing
|
|
$
|
147,584
|
|
|
18.8
|
%
|
|
$
|
142,519
|
|
|
$
|
5,065
|
|
Accommodation and Food Services
|
|
52,468
|
|
|
52.7
|
%
|
|
49,198
|
|
|
3,270
|
|
|||
Manufacturing
|
|
34,214
|
|
|
17.5
|
%
|
|
20,253
|
|
|
13,961
|
|
|||
Health Care and Social Assistance
|
|
19,552
|
|
|
15.9
|
%
|
|
12,136
|
|
|
7,416
|
|
|||
Transportation and Warehousing
|
|
19,402
|
|
|
21.3
|
%
|
|
422
|
|
|
18,980
|
|
|||
Retail Trade
|
|
14,851
|
|
|
29.7
|
%
|
|
11,355
|
|
|
3,496
|
|
|||
Information
|
|
11,228
|
|
|
64.1
|
%
|
|
2,430
|
|
|
8,798
|
|
|||
Utilities
|
|
7,129
|
|
|
96.4
|
%
|
|
—
|
|
|
7,129
|
|
|||
Construction
|
|
6,448
|
|
|
6.7
|
%
|
|
6,359
|
|
|
89
|
|
|||
Wholesale Trade
|
|
5,695
|
|
|
5.7
|
%
|
|
569
|
|
|
5,126
|
|
|||
Other Services (except Public Administration)
|
|
1,673
|
|
|
3.0
|
%
|
|
50
|
|
|
1,623
|
|
|||
Professional, Scientific, and Technical Services
|
|
933
|
|
|
2.3
|
%
|
|
—
|
|
|
933
|
|
|||
Administrative and Support and Waste Management and Remediation Services
|
|
831
|
|
|
9.9
|
%
|
|
728
|
|
|
103
|
|
|||
Finance and Insurance
|
|
743
|
|
|
1.8
|
%
|
|
715
|
|
|
28
|
|
|||
Arts, Entertainment, and Recreation
|
|
300
|
|
|
1.7
|
%
|
|
292
|
|
|
8
|
|
|||
Agriculture, Forestry, Fishing and Hunting
|
|
165
|
|
|
1.3
|
%
|
|
—
|
|
|
165
|
|
|||
Total deferred loan balances
|
|
$
|
323,216
|
|
|
|
|
$
|
247,026
|
|
|
$
|
76,190
|
|
|
|
As of
|
||||||||||||||
|
|
June 30, 2020
|
||||||||||||||
|
|
Category
|
|
|
||||||||||||
|
|
I
|
|
II
|
|
III
|
|
Total
|
||||||||
|
|
(Dollars in Thousands)
|
||||||||||||||
Total deferred loan balances
|
|
$
|
221,414
|
|
|
$
|
66,554
|
|
|
$
|
35,248
|
|
|
$
|
323,216
|
|
% of Total
|
|
68.5
|
%
|
|
20.6
|
%
|
|
10.9
|
%
|
|
100.0
|
%
|
|
|
As of
|
|||||||||||||
|
|
June 30, 2020
|
|||||||||||||
|
|
|
|
|
|
Collateral Type
|
|||||||||
Real Estate and Rental and Leasing Detail:
|
|
Balance
|
|
% Deferred of Sub-Industry
|
|
Real Estate
|
|
Non Real Estate
|
|||||||
|
|
(Dollars in Thousands)
|
|||||||||||||
Office - Class A
|
|
$
|
23,204
|
|
|
15.3
|
%
|
|
$
|
23,204
|
|
|
$
|
—
|
|
Retail - Non-Credit Tenant - Shopping Center
|
|
22,657
|
|
|
73.5
|
%
|
|
22,657
|
|
|
—
|
|
|||
Office - Class B
|
|
17,652
|
|
|
32.1
|
%
|
|
17,652
|
|
|
—
|
|
|||
1-4 Family
|
|
16,887
|
|
|
64.5
|
%
|
|
16,887
|
|
|
—
|
|
|||
Multi-Family - Market Rent
|
|
16,174
|
|
|
8.5
|
%
|
|
16,174
|
|
|
—
|
|
|||
Retail - Non-Credit Tenant - Strip Center
|
|
11,389
|
|
|
59.7
|
%
|
|
11,389
|
|
|
—
|
|
|||
Multi-Family - Student Housing
|
|
8,466
|
|
|
20.2
|
%
|
|
8,466
|
|
|
—
|
|
|||
Retail - Non-Credit Tenant - Restaurant
|
|
6,621
|
|
|
64.9
|
%
|
|
6,621
|
|
|
—
|
|
|||
Retail - Other
|
|
6,110
|
|
|
13.9
|
%
|
|
6,110
|
|
|
—
|
|
|||
Retail - Non-Credit-Tenant - Big Box
|
|
5,629
|
|
|
100.0
|
%
|
|
5,629
|
|
|
—
|
|
|||
Other
|
|
12,795
|
|
|
5.6
|
%
|
|
7,730
|
|
|
5,065
|
|
|||
Total Real Estate and Rental and Leasing
|
|
$
|
147,584
|
|
|
|
|
$
|
142,519
|
|
|
$
|
5,065
|
|
|
|
As of
|
|||||||||||||
|
|
June 30, 2020
|
|||||||||||||
|
|
|
|
|
|
Collateral Type
|
|||||||||
Accommodation and Food Services Detail:
|
|
Balance
|
|
% Deferred of Sub-Industry
|
|
Real Estate
|
|
Non Real Estate
|
|||||||
|
|
(Dollars in Thousands)
|
|||||||||||||
Hotel - Flag
|
|
$
|
43,011
|
|
|
63.1
|
%
|
|
$
|
43,011
|
|
|
$
|
—
|
|
Hotel - No Flag
|
|
1,862
|
|
|
46.0
|
%
|
|
1,862
|
|
|
—
|
|
|||
Other
|
|
5,594
|
|
|
22.7
|
%
|
|
2,324
|
|
|
3,270
|
|
|||
Retail - Restaurant/Bar
|
|
2,001
|
|
|
13.0
|
%
|
|
2,001
|
|
|
—
|
|
|||
Total Accommodation and Food Service
|
|
$
|
52,468
|
|
|
|
|
$
|
49,198
|
|
|
$
|
3,270
|
|
|
|
As of
|
|||||
|
|
June 30, 2020
|
|||||
Industries:
|
|
Balance
|
|
% Gross Loans and Leases (1)
|
|||
|
|
(Dollars in Thousands)
|
|||||
Retail (2)
|
|
$
|
70,028
|
|
|
4.0
|
%
|
Hospitality
|
|
73,502
|
|
|
4.2
|
%
|
|
Entertainment
|
|
16,675
|
|
|
1.0
|
%
|
|
Restaurants & food service
|
|
24,884
|
|
|
1.4
|
%
|
|
Total outstanding exposure
|
|
$
|
185,089
|
|
|
10.7
|
%
|
(1)
|
Excluding PPP loans.
|
(2)
|
Includes $51.7 million in loans secured by commercial real estate.
|
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||||||||||||||||
|
|
2020
|
|
2019
|
|
$ Change
|
|
% Change
|
|
2020
|
|
2019
|
|
$ Change
|
|
% Change
|
||||||||||||||
|
|
(Dollars in Thousands)
|
||||||||||||||||||||||||||||
Net interest income
|
|
$
|
18,888
|
|
|
$
|
16,852
|
|
|
$
|
2,036
|
|
|
12.1
|
%
|
|
$
|
35,937
|
|
|
$
|
34,606
|
|
|
$
|
1,331
|
|
|
3.8
|
%
|
Non-interest income
|
|
6,319
|
|
|
5,805
|
|
|
514
|
|
|
8.9
|
|
|
12,733
|
|
|
10,443
|
|
|
2,290
|
|
|
21.9
|
|
||||||
Top line revenue
|
|
$
|
25,207
|
|
|
$
|
22,657
|
|
|
$
|
2,550
|
|
|
11.3
|
|
|
$
|
48,670
|
|
|
$
|
45,049
|
|
|
$
|
3,621
|
|
|
8.0
|
|
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||||||||||||||||
|
|
2020
|
|
2019
|
|
$ Change
|
|
% Change
|
|
2020
|
|
2019
|
|
$ Change
|
|
% Change
|
||||||||||||||
|
|
(Dollars in Thousands)
|
||||||||||||||||||||||||||||
Total non-interest expense
|
|
$
|
18,343
|
|
|
$
|
17,464
|
|
|
$
|
879
|
|
|
5.0
|
%
|
|
$
|
34,488
|
|
|
$
|
35,206
|
|
|
$
|
(718
|
)
|
|
(2.0
|
)%
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net loss (gain) on foreclosed properties
|
|
348
|
|
|
(21
|
)
|
|
369
|
|
|
NM
|
|
|
450
|
|
|
(21
|
)
|
|
471
|
|
|
NM
|
|
||||||
Amortization of other intangible assets
|
|
9
|
|
|
11
|
|
|
(2
|
)
|
|
(18.2
|
)
|
|
18
|
|
|
21
|
|
|
(3
|
)
|
|
(14.3
|
)
|
||||||
SBA recourse (benefit) provision
|
|
(30
|
)
|
|
113
|
|
|
(143
|
)
|
|
NM
|
|
|
(5
|
)
|
|
594
|
|
|
(599
|
)
|
|
NM
|
|
||||||
Tax credit investment impairment
|
|
1,841
|
|
|
2,088
|
|
|
(247
|
)
|
|
(11.8
|
)
|
|
1,954
|
|
|
4,102
|
|
|
(2,148
|
)
|
|
(52.4
|
)
|
||||||
Loss on early extinguishment of debt
|
|
744
|
|
|
—
|
|
|
744
|
|
|
NM
|
|
|
744
|
|
|
—
|
|
|
744
|
|
|
NM
|
|
||||||
Total operating expense
|
|
$
|
15,431
|
|
|
$
|
15,273
|
|
|
$
|
158
|
|
|
1.0
|
|
|
$
|
31,327
|
|
|
$
|
30,510
|
|
|
$
|
817
|
|
|
2.7
|
|
Net interest income
|
|
18,888
|
|
|
16,852
|
|
|
2,036
|
|
|
12.1
|
|
|
$
|
35,937
|
|
|
$
|
34,606
|
|
|
$
|
1,331
|
|
|
3.8
|
|
|||
Total non-interest income
|
|
6,319
|
|
|
5,805
|
|
|
514
|
|
|
8.9
|
|
|
12,733
|
|
|
10,443
|
|
|
2,290
|
|
|
21.9
|
|
||||||
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net loss on sale of securities
|
|
—
|
|
|
(1
|
)
|
|
1
|
|
|
NM
|
|
|
(4
|
)
|
|
(1
|
)
|
|
(3
|
)
|
|
NM
|
|
||||||
Total operating revenue
|
|
$
|
25,207
|
|
|
$
|
22,658
|
|
|
$
|
2,549
|
|
|
11.2
|
|
|
$
|
48,674
|
|
|
$
|
45,050
|
|
|
$
|
3,624
|
|
|
8.0
|
|
Pre-tax, pre-provision adjusted earnings
|
|
$
|
9,776
|
|
|
$
|
7,385
|
|
|
$
|
2,391
|
|
|
32.4
|
|
|
$
|
17,347
|
|
|
$
|
14,540
|
|
|
$
|
2,807
|
|
|
19.3
|
|
Efficiency ratio
|
|
61.22
|
%
|
|
67.41
|
%
|
|
|
|
|
|
|
|
64.36
|
%
|
|
67.72
|
%
|
|
|
|
|
|
|
|
Increase (Decrease) for the Three Months Ended June 30,
|
|
Increase (Decrease) for the Six Months Ended June 30,
|
||||||||||||||||||||
|
|
2020 Compared to 2019
|
|
2020 Compared to 2019
|
||||||||||||||||||||
|
|
Rate
|
|
Volume
|
|
Net
|
|
Rate
|
|
Volume
|
|
Net
|
||||||||||||
|
|
(In Thousands)
|
||||||||||||||||||||||
Interest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial real estate and other mortgage loans(1)
|
|
$
|
(2,972
|
)
|
|
$
|
667
|
|
|
$
|
(2,305
|
)
|
|
$
|
(4,654
|
)
|
|
$
|
1,183
|
|
|
$
|
(3,471
|
)
|
Commercial and industrial loans(1)
|
|
(3,364
|
)
|
|
3,234
|
|
|
(130
|
)
|
|
(5,495
|
)
|
|
4,384
|
|
|
(1,111
|
)
|
||||||
Direct financing leases(1)
|
|
122
|
|
|
(51
|
)
|
|
71
|
|
|
(64
|
)
|
|
(84
|
)
|
|
(148
|
)
|
||||||
Consumer and other loans(1)
|
|
(55
|
)
|
|
63
|
|
|
8
|
|
|
(83
|
)
|
|
99
|
|
|
16
|
|
||||||
Total loans and leases receivable
|
|
(6,269
|
)
|
|
3,913
|
|
|
(2,356
|
)
|
|
(10,296
|
)
|
|
5,582
|
|
|
(4,714
|
)
|
||||||
Mortgage-related securities
|
|
(186
|
)
|
|
74
|
|
|
(112
|
)
|
|
(267
|
)
|
|
277
|
|
|
10
|
|
||||||
Other investment securities
|
|
(1
|
)
|
|
8
|
|
|
7
|
|
|
7
|
|
|
(29
|
)
|
|
(22
|
)
|
||||||
FHLB and FRB Stock
|
|
(9
|
)
|
|
50
|
|
|
41
|
|
|
83
|
|
|
73
|
|
|
156
|
|
||||||
Short-term investments
|
|
(223
|
)
|
|
95
|
|
|
(128
|
)
|
|
(422
|
)
|
|
135
|
|
|
(287
|
)
|
||||||
Total net change in income on interest-earning assets
|
|
(6,688
|
)
|
|
4,140
|
|
|
(2,548
|
)
|
|
(10,895
|
)
|
|
6,038
|
|
|
(4,857
|
)
|
||||||
Interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Transaction accounts
|
|
(1,075
|
)
|
|
377
|
|
|
(698
|
)
|
|
(1,508
|
)
|
|
586
|
|
|
(922
|
)
|
||||||
Money market accounts
|
|
(2,680
|
)
|
|
198
|
|
|
(2,482
|
)
|
|
(3,791
|
)
|
|
655
|
|
|
(3,136
|
)
|
||||||
Certificates of deposit
|
|
(170
|
)
|
|
(228
|
)
|
|
(398
|
)
|
|
(231
|
)
|
|
(375
|
)
|
|
(606
|
)
|
||||||
Wholesale deposits
|
|
114
|
|
|
(870
|
)
|
|
(756
|
)
|
|
359
|
|
|
(1,709
|
)
|
|
(1,350
|
)
|
||||||
Total deposits
|
|
(3,811
|
)
|
|
(523
|
)
|
|
(4,334
|
)
|
|
(5,171
|
)
|
|
(843
|
)
|
|
(6,014
|
)
|
||||||
FHLB advances
|
|
(3,062
|
)
|
|
2,834
|
|
|
(228
|
)
|
|
(1,039
|
)
|
|
926
|
|
|
(113
|
)
|
||||||
Federal reserve PPP lending facility
|
|
—
|
|
|
18
|
|
|
18
|
|
|
—
|
|
|
18
|
|
|
18
|
|
||||||
Other borrowings
|
|
(44
|
)
|
|
4
|
|
|
(40
|
)
|
|
(85
|
)
|
|
3
|
|
|
(82
|
)
|
||||||
Junior subordinated notes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
1
|
|
|
3
|
|
||||||
Total net change in expense on interest-bearing liabilities
|
|
(6,917
|
)
|
|
2,333
|
|
|
(4,584
|
)
|
|
(6,293
|
)
|
|
105
|
|
|
(6,188
|
)
|
||||||
Net change in net interest income
|
|
$
|
229
|
|
|
$
|
1,807
|
|
|
$
|
2,036
|
|
|
$
|
(4,602
|
)
|
|
$
|
5,933
|
|
|
$
|
1,331
|
|
(1)
|
The average balances of loans and leases include non-accrual loans and leases and loans held for sale.
|
|
|
For the Three Months Ended June 30,
|
||||||||||||||||||||
|
|
2020
|
|
2019
|
||||||||||||||||||
|
|
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)
|
|
$
|
1,192,530
|
|
|
$
|
12,450
|
|
|
4.18
|
%
|
|
$
|
1,139,036
|
|
|
$
|
14,755
|
|
|
5.18
|
%
|
Commercial and industrial loans(1)
|
|
726,862
|
|
|
8,347
|
|
|
4.59
|
|
|
493,093
|
|
|
8,477
|
|
|
6.88
|
|
||||
Direct financing leases(1)
|
|
27,115
|
|
|
395
|
|
|
5.83
|
|
|
31,610
|
|
|
324
|
|
|
4.10
|
|
||||
Consumer and other loans(1)
|
|
36,614
|
|
|
356
|
|
|
3.89
|
|
|
30,555
|
|
|
348
|
|
|
4.56
|
|
||||
Total loans and leases receivable(1)
|
|
1,983,121
|
|
|
21,548
|
|
|
4.35
|
|
|
1,694,294
|
|
|
23,904
|
|
|
5.64
|
|
||||
Mortgage-related securities(2)
|
|
174,113
|
|
|
912
|
|
|
2.10
|
|
|
161,827
|
|
|
1,024
|
|
|
2.53
|
|
||||
Other investment securities(3)
|
|
30,194
|
|
|
158
|
|
|
2.09
|
|
|
28,723
|
|
|
151
|
|
|
2.10
|
|
||||
FHLB and FRB stock
|
|
10,301
|
|
|
127
|
|
|
4.93
|
|
|
6,875
|
|
|
86
|
|
|
5.00
|
|
||||
Short-term investments
|
|
61,030
|
|
|
16
|
|
|
0.10
|
|
|
22,570
|
|
|
144
|
|
|
2.55
|
|
||||
Total interest-earning assets
|
|
2,258,759
|
|
|
22,761
|
|
|
4.03
|
|
|
1,914,289
|
|
|
25,309
|
|
|
5.29
|
|
||||
Non-interest-earning assets
|
|
167,008
|
|
|
|
|
|
|
110,516
|
|
|
|
|
|
||||||||
Total assets
|
|
$
|
2,425,767
|
|
|
|
|
|
|
$
|
2,024,805
|
|
|
|
|
|
||||||
Interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Transaction accounts
|
|
$
|
368,844
|
|
|
291
|
|
|
0.32
|
|
|
$
|
234,241
|
|
|
989
|
|
|
1.69
|
|
||
Money market accounts
|
|
637,714
|
|
|
368
|
|
|
0.23
|
|
|
593,431
|
|
|
2,850
|
|
|
1.92
|
|
||||
Certificates of deposit
|
|
123,581
|
|
|
627
|
|
|
2.03
|
|
|
164,537
|
|
|
1,025
|
|
|
2.49
|
|
||||
Wholesale deposits
|
|
105,597
|
|
|
638
|
|
|
2.42
|
|
|
251,060
|
|
|
1,394
|
|
|
2.22
|
|
||||
Total interest-bearing deposits
|
|
1,235,736
|
|
|
1,924
|
|
|
0.62
|
|
|
1,243,269
|
|
|
6,258
|
|
|
2.01
|
|
||||
FHLB advances
|
|
409,281
|
|
|
1,283
|
|
|
1.25
|
|
|
266,137
|
|
|
1,511
|
|
|
2.27
|
|
||||
Federal reserve PPPLF
|
|
20,821
|
|
|
18
|
|
|
0.35
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Other borrowings
|
|
24,681
|
|
|
371
|
|
|
6.01
|
|
|
24,463
|
|
|
411
|
|
|
6.72
|
|
||||
Junior subordinated notes
|
|
10,052
|
|
|
277
|
|
|
11.02
|
|
|
10,038
|
|
|
277
|
|
|
11.04
|
|
||||
Total interest-bearing liabilities
|
|
1,700,571
|
|
|
3,873
|
|
|
0.91
|
|
|
1,543,907
|
|
|
8,457
|
|
|
2.19
|
|
||||
Non-interest-bearing demand deposit accounts
|
|
440,413
|
|
|
|
|
|
|
254,177
|
|
|
|
|
|
||||||||
Other non-interest-bearing liabilities
|
|
86,504
|
|
|
|
|
|
|
40,110
|
|
|
|
|
|
||||||||
Total liabilities
|
|
2,227,488
|
|
|
|
|
|
|
1,838,194
|
|
|
|
|
|
||||||||
Stockholders’ equity
|
|
198,279
|
|
|
|
|
|
|
186,611
|
|
|
|
|
|
||||||||
Total liabilities and stockholders’ equity
|
|
$
|
2,425,767
|
|
|
|
|
|
|
$
|
2,024,805
|
|
|
|
|
|
||||||
Net interest income
|
|
|
|
$
|
18,888
|
|
|
|
|
|
|
$
|
16,852
|
|
|
|
||||||
Interest rate spread
|
|
|
|
|
|
3.12
|
%
|
|
|
|
|
|
3.10
|
%
|
||||||||
Net interest-earning assets
|
|
$
|
558,188
|
|
|
|
|
|
|
$
|
370,382
|
|
|
|
|
|
||||||
Net interest margin
|
|
|
|
|
|
3.34
|
%
|
|
|
|
|
|
3.52
|
%
|
||||||||
Average interest-earning assets to average interest-bearing liabilities
|
|
132.82
|
%
|
|
|
|
|
|
123.99
|
%
|
|
|
|
|
||||||||
Return on average assets(4)
|
|
0.55
|
|
|
|
|
|
|
1.30
|
|
|
|
|
|
||||||||
Return on average equity(4)
|
|
6.70
|
|
|
|
|
|
|
14.09
|
|
|
|
|
|
||||||||
Average equity to average assets
|
|
8.17
|
|
|
|
|
|
|
9.22
|
|
|
|
|
|
||||||||
Non-interest expense to average assets(4)
|
|
3.02
|
|
|
|
|
|
|
3.45
|
|
|
|
|
|
(1)
|
The average balances of loans and leases include non-accrual loans and leases and loans held for sale. Interest income related to non-accrual 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 securities are not presented on a tax-equivalent basis in this table.
|
(4)
|
Represents annualized yields/rates.
|
|
|
For the Six Months Ended June 30,
|
||||||||||||||||||||
|
|
2020
|
|
2019
|
||||||||||||||||||
|
|
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)
|
|
$
|
1,173,251
|
|
|
$
|
25,973
|
|
|
4.43
|
%
|
|
$
|
1,126,449
|
|
|
$
|
29,444
|
|
|
5.23
|
%
|
Commercial and industrial loans(1)
|
|
621,399
|
|
|
16,204
|
|
|
5.22
|
|
|
479,644
|
|
|
17,315
|
|
|
7.22
|
|
||||
Direct financing leases(1)
|
|
27,538
|
|
|
503
|
|
|
3.65
|
|
|
31,927
|
|
|
651
|
|
|
4.08
|
|
||||
Consumer and other loans(1)
|
|
36,244
|
|
|
717
|
|
|
3.96
|
|
|
31,491
|
|
|
701
|
|
|
4.45
|
|
||||
Total loans and leases receivable(1)
|
|
1,858,432
|
|
|
43,397
|
|
|
4.67
|
|
|
1,669,511
|
|
|
48,111
|
|
|
5.76
|
|
||||
Mortgage-related securities(2)
|
|
177,352
|
|
|
1,973
|
|
|
2.22
|
|
|
153,981
|
|
|
1,963
|
|
|
2.55
|
|
||||
Other investment securities(3)
|
|
26,737
|
|
|
285
|
|
|
2.13
|
|
|
29,423
|
|
|
307
|
|
|
2.09
|
|
||||
FHLB and FRB stock
|
|
9,407
|
|
|
331
|
|
|
7.04
|
|
|
6,965
|
|
|
175
|
|
|
5.03
|
|
||||
Short-term investments
|
|
48,396
|
|
|
146
|
|
|
0.60
|
|
|
33,818
|
|
|
433
|
|
|
2.56
|
|
||||
Total interest-earning assets
|
|
2,120,324
|
|
|
46,132
|
|
|
4.35
|
|
|
1,893,698
|
|
|
50,989
|
|
|
5.39
|
|
||||
Non-interest-earning assets
|
|
144,991
|
|
|
|
|
|
|
103,196
|
|
|
|
|
|
||||||||
Total assets
|
|
$
|
2,265,315
|
|
|
|
|
|
|
$
|
1,996,894
|
|
|
|
|
|
||||||
Interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Transaction accounts
|
|
$
|
320,188
|
|
|
938
|
|
|
0.59
|
|
|
$
|
224,873
|
|
|
1,860
|
|
|
1.65
|
|
||
Money market accounts
|
|
653,598
|
|
|
2,237
|
|
|
0.68
|
|
|
574,666
|
|
|
5,373
|
|
|
1.87
|
|
||||
Certificates of deposit
|
|
128,791
|
|
|
1,377
|
|
|
2.14
|
|
|
162,082
|
|
|
1,983
|
|
|
2.45
|
|
||||
Wholesale deposits
|
|
119,032
|
|
|
1,488
|
|
|
2.50
|
|
|
259,379
|
|
|
2,838
|
|
|
2.19
|
|
||||
Total interest-bearing deposits
|
|
1,221,609
|
|
|
6,040
|
|
|
0.99
|
|
|
1,221,000
|
|
|
12,054
|
|
|
1.97
|
|
||||
FHLB advances
|
|
367,604
|
|
|
2,842
|
|
|
1.55
|
|
|
267,058
|
|
|
2,955
|
|
|
2.21
|
|
||||
Federal reserve PPPLF
|
|
10,410
|
|
|
18
|
|
|
0.35
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Other borrowings
|
|
24,533
|
|
|
740
|
|
|
6.03
|
|
|
24,456
|
|
|
822
|
|
|
6.72
|
|
||||
Junior subordinated notes
|
|
10,050
|
|
|
555
|
|
|
11.04
|
|
|
10,036
|
|
|
552
|
|
|
11.00
|
|
||||
Total interest-bearing liabilities
|
|
1,634,206
|
|
|
10,195
|
|
|
1.25
|
|
|
1,522,550
|
|
|
16,383
|
|
|
2.15
|
|
||||
Non-interest-bearing demand deposit accounts
|
|
365,771
|
|
|
|
|
|
|
255,691
|
|
|
|
|
|
||||||||
Other non-interest-bearing liabilities
|
|
74,436
|
|
|
|
|
|
|
39,017
|
|
|
|
|
|
||||||||
Total liabilities
|
|
2,074,413
|
|
|
|
|
|
|
1,817,258
|
|
|
|
|
|
||||||||
Stockholders’ equity
|
|
190,902
|
|
|
|
|
|
|
179,636
|
|
|
|
|
|
||||||||
Total liabilities and stockholders’ equity
|
|
$
|
2,265,315
|
|
|
|
|
|
|
$
|
1,996,894
|
|
|
|
|
|
||||||
Net interest income
|
|
|
|
$
|
35,937
|
|
|
|
|
|
|
$
|
34,606
|
|
|
|
||||||
Interest rate spread
|
|
|
|
|
|
3.10
|
%
|
|
|
|
|
|
3.23
|
%
|
||||||||
Net interest-earning assets
|
|
$
|
486,118
|
|
|
|
|
|
|
$
|
371,148
|
|
|
|
|
|
||||||
Net interest margin
|
|
|
|
|
|
3.39
|
%
|
|
|
|
|
|
3.66
|
%
|
||||||||
Average interest-earning assets to average interest-bearing liabilities
|
|
129.75
|
%
|
|
|
|
|
|
124.38
|
%
|
|
|
|
|
||||||||
Return on average assets(4)
|
|
0.58
|
|
|
|
|
|
|
1.25
|
|
|
|
|
|
||||||||
Return on average equity(4)
|
|
6.92
|
|
|
|
|
|
|
13.89
|
|
|
|
|
|
||||||||
Average equity to average assets
|
|
8.43
|
|
|
|
|
|
|
9.00
|
|
|
|
|
|
||||||||
Non-interest expense to average assets
|
|
3.04
|
|
|
|
|
|
|
3.53
|
|
|
|
|
|
(1)
|
The average balances of loans and leases include non-accrual loans and leases and loans held for sale. Interest income related to non-accrual 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 securities are not presented on a tax-equivalent basis in this table.
|
(4)
|
Represents annualized yields/rates.
|
|
As of
|
||||||||||
|
June 30,
2020 |
|
March 31,
2020 |
|
June 30,
2019 |
||||||
|
(In Thousands)
|
||||||||||
Performing loans:
|
|
|
|
|
|
||||||
Off-balance sheet loans
|
$
|
28,843
|
|
|
$
|
31,212
|
|
|
$
|
44,385
|
|
On-balance sheet loans
|
16,554
|
|
|
17,935
|
|
|
23,406
|
|
|||
Gross loans
|
45,397
|
|
|
49,147
|
|
|
67,791
|
|
|||
Non-performing loans:
|
|
|
|
|
|
||||||
Off-balance sheet loans
|
1,640
|
|
|
4,887
|
|
|
8,294
|
|
|||
On-balance sheet loans
|
9,725
|
|
|
13,833
|
|
|
16,940
|
|
|||
Gross loans
|
11,365
|
|
|
18,720
|
|
|
25,234
|
|
|||
Total loans:
|
|
|
|
|
|
||||||
Off-balance sheet loans
|
30,483
|
|
|
36,099
|
|
|
52,679
|
|
|||
On-balance sheet loans
|
26,279
|
|
|
31,768
|
|
|
40,346
|
|
|||
Gross loans
|
$
|
56,762
|
|
|
$
|
67,867
|
|
|
$
|
93,025
|
|
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||||||||||||||||
|
|
2020
|
|
2019
|
|
$ Change
|
|
% Change
|
|
2020
|
|
2019
|
|
$ Change
|
|
% Change
|
||||||||||||||
|
|
(Dollars in Thousands)
|
||||||||||||||||||||||||||||
Private wealth management service fees
|
|
$
|
2,124
|
|
|
$
|
2,138
|
|
|
$
|
(14
|
)
|
|
(0.7
|
)%
|
|
$
|
4,235
|
|
|
$
|
4,065
|
|
|
$
|
170
|
|
|
4.2
|
%
|
Gain on sale of SBA loans
|
|
574
|
|
|
297
|
|
|
277
|
|
|
93.3
|
|
|
839
|
|
|
539
|
|
|
300
|
|
|
55.7
|
|
||||||
Service charges on deposits
|
|
829
|
|
|
743
|
|
|
86
|
|
|
11.6
|
|
|
1,647
|
|
|
1,520
|
|
|
127
|
|
|
8.4
|
|
||||||
Loan fees
|
|
451
|
|
|
464
|
|
|
(13
|
)
|
|
(2.8
|
)
|
|
936
|
|
|
877
|
|
|
59
|
|
|
6.7
|
|
||||||
Increase in cash surrender value of bank-owned life insurance
|
|
377
|
|
|
297
|
|
|
80
|
|
|
26.9
|
|
|
672
|
|
|
589
|
|
|
83
|
|
|
14.1
|
|
||||||
Net loss on sale of securities
|
|
—
|
|
|
(1
|
)
|
|
1
|
|
|
NM
|
|
|
(4
|
)
|
|
(1
|
)
|
|
(3
|
)
|
|
NM
|
|
||||||
Commercial loan swap fees
|
|
1,655
|
|
|
1,051
|
|
|
604
|
|
|
57.5
|
|
|
3,336
|
|
|
1,523
|
|
|
1,813
|
|
|
NM
|
|
||||||
Other non-interest income
|
|
309
|
|
|
816
|
|
|
(507
|
)
|
|
(62.1
|
)
|
|
1,072
|
|
|
1,331
|
|
|
(259
|
)
|
|
(19.5
|
)
|
||||||
Total non-interest income
|
|
$
|
6,319
|
|
|
$
|
5,805
|
|
|
$
|
514
|
|
|
8.9
|
|
|
$
|
12,733
|
|
|
$
|
10,443
|
|
|
$
|
2,290
|
|
|
21.9
|
|
Fee income ratio(1)
|
|
25.1
|
%
|
|
25.6
|
%
|
|
|
|
|
|
26.2
|
%
|
|
23.2
|
%
|
|
|
|
|
(1)
|
Fee income ratio is total non-interest income, per the above table, divided by top line revenue (defined as net interest income plus non-interest income).
|
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||||||||||||||||
|
|
2020
|
|
2019
|
|
$ Change
|
|
% Change
|
|
2020
|
|
2019
|
|
$ Change
|
|
% Change
|
||||||||||||||
|
|
(Dollars in Thousands)
|
||||||||||||||||||||||||||||
Compensation
|
|
$
|
10,796
|
|
|
$
|
10,503
|
|
|
$
|
293
|
|
|
2.8
|
%
|
|
$
|
21,848
|
|
|
$
|
20,667
|
|
|
$
|
1,181
|
|
|
5.7
|
%
|
Occupancy
|
|
554
|
|
|
559
|
|
|
(5
|
)
|
|
(0.9
|
)
|
|
1,126
|
|
|
1,149
|
|
|
(23
|
)
|
|
(2.0
|
)
|
||||||
Professional fees
|
|
859
|
|
|
784
|
|
|
75
|
|
|
9.6
|
|
|
1,678
|
|
|
1,994
|
|
|
(316
|
)
|
|
(15.8
|
)
|
||||||
Data processing
|
|
710
|
|
|
689
|
|
|
21
|
|
|
3.0
|
|
|
1,386
|
|
|
1,269
|
|
|
117
|
|
|
9.2
|
|
||||||
Marketing
|
|
352
|
|
|
581
|
|
|
(229
|
)
|
|
(39.4
|
)
|
|
813
|
|
|
1,063
|
|
|
(250
|
)
|
|
(23.5
|
)
|
||||||
Equipment
|
|
304
|
|
|
272
|
|
|
32
|
|
|
11.8
|
|
|
595
|
|
|
661
|
|
|
(66
|
)
|
|
(10.0
|
)
|
||||||
Computer software
|
|
966
|
|
|
827
|
|
|
139
|
|
|
16.8
|
|
|
1,856
|
|
|
1,626
|
|
|
230
|
|
|
14.1
|
|
||||||
FDIC insurance
|
|
239
|
|
|
302
|
|
|
(63
|
)
|
|
(20.9
|
)
|
|
448
|
|
|
595
|
|
|
(147
|
)
|
|
(24.7
|
)
|
||||||
Collateral liquidation costs (recovery)
|
|
115
|
|
|
89
|
|
|
26
|
|
|
29.2
|
|
|
236
|
|
|
(1
|
)
|
|
237
|
|
|
NM
|
|
||||||
Net loss (gain) on foreclosed properties
|
|
348
|
|
|
(21
|
)
|
|
369
|
|
|
NM
|
|
|
450
|
|
|
(21
|
)
|
|
471
|
|
|
NM
|
|
||||||
Tax credit investment impairment
|
|
1,841
|
|
|
2,088
|
|
|
(247
|
)
|
|
(11.8
|
)
|
|
1,954
|
|
|
4,102
|
|
|
(2,148
|
)
|
|
(52.4
|
)
|
||||||
SBA recourse (benefit) provision
|
|
(30
|
)
|
|
113
|
|
|
(143
|
)
|
|
NM
|
|
|
(5
|
)
|
|
594
|
|
|
(599
|
)
|
|
NM
|
|
||||||
Loss on early extinguishment of debt
|
|
744
|
|
|
—
|
|
|
744
|
|
|
NM
|
|
|
744
|
|
|
—
|
|
|
744
|
|
|
NM
|
|
||||||
Other non-interest expense
|
|
545
|
|
|
678
|
|
|
(133
|
)
|
|
(19.6
|
)
|
|
1,359
|
|
|
1,508
|
|
|
(149
|
)
|
|
(9.9
|
)
|
||||||
Total non-interest expense
|
|
$
|
18,343
|
|
|
$
|
17,464
|
|
|
$
|
879
|
|
|
5.0
|
|
|
$
|
34,488
|
|
|
$
|
35,206
|
|
|
$
|
(718
|
)
|
|
(2.0
|
)
|
Total operating expense(1)
|
|
$
|
15,431
|
|
|
$
|
15,273
|
|
|
$
|
158
|
|
|
1.0
|
|
|
$
|
31,327
|
|
|
$
|
30,510
|
|
|
$
|
817
|
|
|
2.7
|
|
Full-time equivalent employees
|
|
283
|
|
|
275
|
|
|
|
|
|
|
283
|
|
|
275
|
|
|
|
|
|
(1)
|
Total operating expense represents total non-interest expense, adjusted to exclude the impact of discrete items as previously defined in the non-GAAP efficiency ratio calculation, above.
|
|
|
June 30,
2020 |
|
December 31,
2019 |
||||
|
|
(Dollars in Thousands)
|
||||||
Non-accrual loans and leases
|
|
|
|
|
||||
Commercial real estate:
|
|
|
|
|
||||
Commercial real estate - owner occupied
|
|
$
|
7,503
|
|
|
$
|
4,032
|
|
Commercial real estate - non-owner occupied
|
|
—
|
|
|
—
|
|
||
Land development
|
|
1,049
|
|
|
1,526
|
|
||
Construction
|
|
—
|
|
|
—
|
|
||
Multi-family
|
|
—
|
|
|
—
|
|
||
1-4 family
|
|
333
|
|
|
333
|
|
||
Total non-accrual commercial real estate
|
|
8,885
|
|
|
5,891
|
|
||
Commercial and industrial
|
|
15,034
|
|
|
14,575
|
|
||
Direct financing leases, net
|
|
49
|
|
|
—
|
|
||
Consumer and other:
|
|
|
|
|
||||
Home equity and second mortgages
|
|
—
|
|
|
—
|
|
||
Other
|
|
127
|
|
|
147
|
|
||
Total non-accrual consumer and other loans
|
|
127
|
|
|
147
|
|
||
Total non-accrual loans and leases
|
|
24,095
|
|
|
20,613
|
|
||
Foreclosed properties, net
|
|
1,389
|
|
|
2,919
|
|
||
Total non-performing assets
|
|
25,484
|
|
|
23,532
|
|
||
Performing troubled debt restructurings
|
|
49
|
|
|
140
|
|
||
Total impaired assets
|
|
$
|
25,533
|
|
|
$
|
23,672
|
|
|
|
|
|
|
||||
Total non-accrual loans and leases to gross loans and leases
|
|
1.17
|
%
|
|
1.20
|
%
|
||
Total non-performing assets to gross loans and leases plus foreclosed properties, net
|
|
1.23
|
|
|
1.37
|
|
||
Total non-performing assets to total assets
|
|
1.03
|
|
|
1.12
|
|
||
Allowance for loan and lease losses to gross loans and leases
|
|
1.33
|
|
|
1.14
|
|
||
Allowance for loan and lease losses to non-accrual loans and leases
|
|
113.98
|
|
|
94.70
|
|
|
|
June 30,
2020 |
|
December 31,
2019 |
||
Total non-accrual loans and leases to gross loans and leases
|
|
1.39
|
%
|
|
1.20
|
%
|
Total non-performing assets to gross loans and leases plus foreclosed properties, net
|
|
1.47
|
|
|
1.37
|
|
Total non-performing assets to total assets
|
|
1.19
|
|
|
1.12
|
|
Allowance for loan and lease losses to gross loans and leases
|
|
1.58
|
|
|
1.14
|
|
|
|
As of and for the Six Months Ended June 30,
|
|
As of and for the
Year Ended December 31,
|
||||||||
|
|
2020
|
|
2019
|
|
2019
|
||||||
|
|
(In Thousands)
|
||||||||||
Impaired loans and leases with no impairment reserves required
|
|
$
|
10,742
|
|
|
$
|
7,184
|
|
|
$
|
7,312
|
|
Impaired loans and leases with impairment reserves required
|
|
13,402
|
|
|
16,525
|
|
|
13,441
|
|
|||
Total impaired loans and leases
|
|
24,144
|
|
|
23,709
|
|
|
20,753
|
|
|||
Less: Impairment reserve (included in allowance for loan and lease losses)
|
|
5,924
|
|
|
4,711
|
|
|
3,365
|
|
|||
Net impaired loans and leases
|
|
$
|
18,220
|
|
|
$
|
18,998
|
|
|
$
|
17,388
|
|
Average impaired loans and leases
|
|
$
|
23,847
|
|
|
$
|
24,252
|
|
|
$
|
24,090
|
|
Foregone interest income attributable to impaired loans and leases
|
|
$
|
1,114
|
|
|
$
|
718
|
|
|
$
|
2,693
|
|
Less: Interest income recognized on impaired loans and leases
|
|
458
|
|
|
668
|
|
|
793
|
|
|||
Net foregone interest income on impaired loans and leases
|
|
$
|
656
|
|
|
$
|
50
|
|
|
$
|
1,900
|
|
|
|
As of and for the Six Months Ended June 30,
|
|
As of and for the
Year Ended December 31,
|
||||||||
|
|
2020
|
|
2019
|
|
2019
|
||||||
|
|
(In Thousands)
|
|
|
||||||||
Balance at the beginning of the period
|
|
$
|
2,919
|
|
|
$
|
2,547
|
|
|
$
|
2,547
|
|
Transfer of loans and leases to foreclosed properties
|
|
80
|
|
|
—
|
|
|
596
|
|
|||
Proceeds from sale of foreclosed properties
|
|
(1,160
|
)
|
|
—
|
|
|
—
|
|
|||
Net loss on sale of foreclosed properties
|
|
(54
|
)
|
|
—
|
|
|
—
|
|
|||
Impairment adjustments
|
|
(396
|
)
|
|
—
|
|
|
(224
|
)
|
|||
Balance at the end of the period
|
|
$
|
1,389
|
|
|
$
|
2,547
|
|
|
$
|
2,919
|
|
|
|
As of and for the Three Months Ended June 30,
|
|
As of and for the Six Months Ended June 30,
|
||||||||||||
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
|
(Dollars in Thousands)
|
||||||||||||||
Allowance at beginning of period
|
|
$
|
22,748
|
|
|
$
|
20,449
|
|
|
$
|
19,520
|
|
|
$
|
20,425
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
||||||||
Commercial real estate — owner occupied
|
|
(27
|
)
|
|
—
|
|
|
(27
|
)
|
|
—
|
|
||||
Commercial real estate — non-owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Construction and land development
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
1-4 family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Commercial and industrial
|
|
(729
|
)
|
|
(13
|
)
|
|
(854
|
)
|
|
(61
|
)
|
||||
Direct financing leases
|
|
(55
|
)
|
|
—
|
|
|
(55
|
)
|
|
—
|
|
||||
Consumer and other:
|
|
|
|
|
|
|
|
|
||||||||
Home equity and second mortgages
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Other
|
|
(6
|
)
|
|
(2
|
)
|
|
(12
|
)
|
|
(2
|
)
|
||||
Total charge-offs
|
|
(817
|
)
|
|
(15
|
)
|
|
(948
|
)
|
|
(63
|
)
|
||||
Recoveries:
|
|
|
|
|
|
|
|
|
||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
||||||||
Commercial real estate — owner occupied
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||
Commercial real estate — non-owner occupied
|
|
2
|
|
|
71
|
|
|
2
|
|
|
72
|
|
||||
Construction and land development
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Multi-family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
1-4 family
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Commercial and industrial
|
|
62
|
|
|
73
|
|
|
238
|
|
|
92
|
|
||||
Direct financing leases
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Consumer and other:
|
|
|
|
|
|
|
|
|
||||||||
Home equity and second mortgages
|
|
—
|
|
|
25
|
|
|
—
|
|
|
26
|
|
||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||
Total recoveries
|
|
64
|
|
|
169
|
|
|
241
|
|
|
193
|
|
||||
Net (charge-offs) recoveries
|
|
(753
|
)
|
|
154
|
|
|
(707
|
)
|
|
130
|
|
||||
Provision for loan and lease losses
|
|
5,469
|
|
|
(784
|
)
|
|
8,651
|
|
|
(736
|
)
|
||||
Allowance at end of period
|
|
$
|
27,464
|
|
|
$
|
19,819
|
|
|
$
|
27,464
|
|
|
$
|
19,819
|
|
Annualized net charge-offs (recoveries) as a percent of average gross loans and leases
|
|
0.15
|
%
|
|
(0.04
|
)%
|
|
0.08
|
%
|
|
(0.02
|
)%
|
||||
Annualized net charge-offs (recoveries) as a percent of average gross loans and leases, excluding average PPP loans
|
|
0.17
|
%
|
|
(0.04
|
)%
|
|
0.08
|
%
|
|
(0.02
|
)%
|
(a)
|
None.
|
(b)
|
Not applicable.
|
(c)
|
None.
|
|
|
|
|
|
|
|
|
|
31.1
|
|
|
|
|
|
|
|
31.2
|
|
|
|
|
|
|
|
32
|
|
|
|
|
|
|
|
101
|
|
|
The following financial information from First Business Financial Services, Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019, (ii) Consolidated Statements of Income for the three and six months ended June 30, 2020 and 2019, (iii) Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2020 and 2019, (iv) Consolidated Statements of Changes in Stockholders’ Equity for the three and six months ended June 30, 2020 and 2019, (v) Consolidated Statements of Cash Flows for the three and six months ended June 30, 2020 and 2019, and (vi) the Notes to Unaudited Consolidated Financial Statements
|
|
|
|
|
FIRST BUSINESS FINANCIAL SERVICES, INC.
|
July 24, 2020
|
/s/ Corey A. Chambas
|
|
Corey A. Chambas
|
|
Chief Executive Officer
|
|
|
July 24, 2020
|
/s/ Edward G. Sloane, Jr.
|
|
Edward G. Sloane, Jr.
|
|
Chief Financial Officer
|
|
(principal financial officer)
|
1 Year First Business Financial... Chart |
1 Month First Business Financial... Chart |
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