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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Live Oak Bancshares Inc | NASDAQ:LOB | 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% | 30.54 | 30.01 | 32.13 | 0 | 01:00:00 |
ý
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Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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¨
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Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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North Carolina
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26-4596286
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
|
|
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1741 Tiburon Drive
Wilmington, North Carolina
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28403
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer
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¨
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Accelerated filer
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x
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Non-accelerated filer
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¨
(Do not check if smaller reporting company)
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Smaller reporting company
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¨
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Emerging growth company
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x
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Page
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PART I. FINANCIAL INFORMATION
|
||
Item 1.
|
||
|
||
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||
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||
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||
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Item 2.
|
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Item 3.
|
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Item 4.
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PART II. OTHER INFORMATION
|
||
Item 1.
|
||
Item 1A.
|
||
Item 2.
|
||
Item 3.
|
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Item 4.
|
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Item 5.
|
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Item 6.
|
||
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||
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|
September 30,
2017 |
|
December 31,
2016* |
||||
Assets
|
|
|
|
||||
Cash and due from banks
|
$
|
260,907
|
|
|
$
|
238,008
|
|
Certificates of deposit with other banks
|
3,250
|
|
|
7,250
|
|
||
Investment securities available-for-sale
|
76,575
|
|
|
71,056
|
|
||
Loans held for sale
|
692,586
|
|
|
394,278
|
|
||
Loans and leases held for investment
|
1,169,887
|
|
|
907,566
|
|
||
Allowance for loan and lease losses
|
(21,027
|
)
|
|
(18,209
|
)
|
||
Net loans and leases
|
1,148,860
|
|
|
889,357
|
|
||
Premises and equipment, net
|
129,233
|
|
|
64,661
|
|
||
Foreclosed assets
|
2,231
|
|
|
1,648
|
|
||
Servicing assets
|
53,392
|
|
|
51,994
|
|
||
Other assets
|
65,155
|
|
|
37,009
|
|
||
Total assets
|
$
|
2,432,189
|
|
|
$
|
1,755,261
|
|
Liabilities and Shareholders’ Equity
|
|
|
|
||||
Liabilities
|
|
|
|
||||
Deposits:
|
|
|
|
||||
Noninterest-bearing
|
$
|
55,260
|
|
|
$
|
27,990
|
|
Interest-bearing
|
1,957,631
|
|
|
1,457,086
|
|
||
Total deposits
|
2,012,891
|
|
|
1,485,076
|
|
||
Long term borrowings
|
26,872
|
|
|
27,843
|
|
||
Other liabilities
|
27,835
|
|
|
19,495
|
|
||
Total liabilities
|
2,067,598
|
|
|
1,532,414
|
|
||
Shareholders’ equity
|
|
|
|
||||
Preferred stock, no par value, 1,000,000 authorized, none issued or outstanding at September 30, 2017 and December 31, 2016
|
—
|
|
|
—
|
|
||
Class A common stock, no par value, 100,000,000 shares authorized, 35,218,617 and 29,530,072 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively
|
266,336
|
|
|
149,966
|
|
||
Class B common stock, no par value, 10,000,000 shares authorized, 4,643,530 and 4,723,530 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively
|
49,168
|
|
|
50,015
|
|
||
Retained earnings
|
49,707
|
|
|
23,518
|
|
||
Accumulated other comprehensive loss
|
(620
|
)
|
|
(652
|
)
|
||
Total equity
|
364,591
|
|
|
222,847
|
|
||
Total liabilities and shareholders’ equity
|
$
|
2,432,189
|
|
|
$
|
1,755,261
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Interest income
|
|
|
|
|
|
|
|
||||||||
Loans and fees on loans
|
$
|
26,977
|
|
|
$
|
14,961
|
|
|
$
|
70,290
|
|
|
$
|
38,868
|
|
Investment securities, taxable
|
325
|
|
|
337
|
|
|
964
|
|
|
840
|
|
||||
Other interest earning assets
|
870
|
|
|
264
|
|
|
1,682
|
|
|
650
|
|
||||
Total interest income
|
28,172
|
|
|
15,562
|
|
|
72,936
|
|
|
40,358
|
|
||||
Interest expense
|
|
|
|
|
|
|
|
||||||||
Deposits
|
6,758
|
|
|
3,689
|
|
|
16,893
|
|
|
9,376
|
|
||||
Borrowings
|
389
|
|
|
242
|
|
|
985
|
|
|
725
|
|
||||
Total interest expense
|
7,147
|
|
|
3,931
|
|
|
17,878
|
|
|
10,101
|
|
||||
Net interest income
|
21,025
|
|
|
11,631
|
|
|
55,058
|
|
|
30,257
|
|
||||
Provision for loan and lease losses
|
2,426
|
|
|
3,806
|
|
|
5,481
|
|
|
8,692
|
|
||||
Net interest income after provision for loan and lease losses
|
18,599
|
|
|
7,825
|
|
|
49,577
|
|
|
21,565
|
|
||||
Noninterest income
|
|
|
|
|
|
|
|
||||||||
Loan servicing revenue
|
6,490
|
|
|
5,860
|
|
|
18,587
|
|
|
15,725
|
|
||||
Loan servicing asset revaluation
|
(3,691
|
)
|
|
(3,421
|
)
|
|
(6,864
|
)
|
|
(5,051
|
)
|
||||
Net gains on sales of loans
|
18,148
|
|
|
21,833
|
|
|
55,276
|
|
|
52,813
|
|
||||
Gain on sale of investment securities available-for-sale
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
Construction supervision fee income
|
362
|
|
|
502
|
|
|
1,077
|
|
|
1,799
|
|
||||
Title insurance income
|
1,968
|
|
|
—
|
|
|
5,803
|
|
|
—
|
|
||||
Other noninterest income
|
1,783
|
|
|
657
|
|
|
3,601
|
|
|
1,925
|
|
||||
Total noninterest income
|
25,060
|
|
|
25,432
|
|
|
77,480
|
|
|
67,212
|
|
||||
Noninterest expense
|
|
|
|
|
|
|
|
||||||||
Salaries and employee benefits
|
19,037
|
|
|
17,471
|
|
|
55,687
|
|
|
45,875
|
|
||||
Travel expense
|
2,289
|
|
|
2,218
|
|
|
6,035
|
|
|
6,394
|
|
||||
Professional services expense
|
1,068
|
|
|
907
|
|
|
4,228
|
|
|
2,345
|
|
||||
Advertising and marketing expense
|
1,516
|
|
|
1,097
|
|
|
4,977
|
|
|
3,425
|
|
||||
Occupancy expense
|
1,473
|
|
|
1,058
|
|
|
4,018
|
|
|
3,306
|
|
||||
Data processing expense
|
1,982
|
|
|
1,252
|
|
|
5,536
|
|
|
3,864
|
|
||||
Equipment expense
|
2,228
|
|
|
611
|
|
|
5,005
|
|
|
1,696
|
|
||||
Other loan origination and maintenance expense
|
1,601
|
|
|
806
|
|
|
3,587
|
|
|
2,001
|
|
||||
FDIC insurance
|
858
|
|
|
210
|
|
|
2,308
|
|
|
507
|
|
||||
Title insurance closing services expense
|
687
|
|
|
—
|
|
|
1,877
|
|
|
—
|
|
||||
Other expense
|
3,117
|
|
|
1,588
|
|
|
8,883
|
|
|
4,648
|
|
||||
Total noninterest expense
|
35,856
|
|
|
27,218
|
|
|
102,141
|
|
|
74,061
|
|
||||
Income before taxes
|
7,803
|
|
|
6,039
|
|
|
24,916
|
|
|
14,716
|
|
||||
Income tax (benefit) expense
|
(5,059
|
)
|
|
2,561
|
|
|
(3,853
|
)
|
|
6,432
|
|
||||
Net income
|
12,862
|
|
|
3,478
|
|
|
28,769
|
|
|
8,284
|
|
||||
Net loss attributable to noncontrolling interest
|
—
|
|
|
1
|
|
|
—
|
|
|
9
|
|
||||
Net income attributable to Live Oak Bancshares, Inc.
|
$
|
12,862
|
|
|
$
|
3,479
|
|
|
$
|
28,769
|
|
|
$
|
8,293
|
|
Basic earnings per share
|
$
|
0.34
|
|
|
$
|
0.10
|
|
|
$
|
0.81
|
|
|
$
|
0.24
|
|
Diluted earnings per share
|
$
|
0.33
|
|
|
$
|
0.10
|
|
|
$
|
0.78
|
|
|
$
|
0.24
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net income
|
$
|
12,862
|
|
|
$
|
3,478
|
|
|
$
|
28,769
|
|
|
$
|
8,284
|
|
Other comprehensive income before tax:
|
|
|
|
|
|
|
|
||||||||
Net unrealized (loss) gain on investment securities arising during the period
|
(168
|
)
|
|
(115
|
)
|
|
52
|
|
|
525
|
|
||||
Reclassification adjustment for (gain) loss on sale of securities available-for-sale included in net income
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
||||
Other comprehensive income before tax
|
(168
|
)
|
|
(116
|
)
|
|
52
|
|
|
524
|
|
||||
Income tax benefit (expense)
|
65
|
|
|
45
|
|
|
(20
|
)
|
|
(202
|
)
|
||||
Other comprehensive (loss) income, net of tax
|
(103
|
)
|
|
(71
|
)
|
|
32
|
|
|
322
|
|
||||
Total comprehensive income
|
$
|
12,759
|
|
|
$
|
3,407
|
|
|
$
|
28,801
|
|
|
$
|
8,606
|
|
|
Common stock
|
|
Retained
earnings
|
|
Accumulated
other
comprehensive
income (loss)
|
|
Non-
controlling
interest
|
|
Total
equity
|
||||||||||||||||
Shares
|
|
|
|
||||||||||||||||||||||
Class A
|
|
Class B
|
|
Amount
|
|
||||||||||||||||||||
Balance at December 31, 2015
|
29,449,369
|
|
|
4,723,530
|
|
|
$
|
187,507
|
|
|
$
|
12,140
|
|
|
$
|
(192
|
)
|
|
$
|
33
|
|
|
$
|
199,488
|
|
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
8,293
|
|
|
—
|
|
|
(9
|
)
|
|
8,284
|
|
|||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
322
|
|
|
—
|
|
|
322
|
|
|||||
Issuance of restricted stock
|
16,745
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Stock option exercises
|
25,406
|
|
|
—
|
|
|
147
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
147
|
|
|||||
Stock option based compensation expense
|
—
|
|
|
—
|
|
|
1,752
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,752
|
|
|||||
Restricted stock expense
|
—
|
|
|
—
|
|
|
5,893
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,893
|
|
|||||
Acquisition of non-controlling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(24
|
)
|
|
(24
|
)
|
|||||
Dividends (distributions to shareholders)
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,710
|
)
|
|
—
|
|
|
—
|
|
|
(1,710
|
)
|
|||||
Balance at September 30, 2016
|
29,491,520
|
|
|
4,723,530
|
|
|
$
|
195,299
|
|
|
$
|
18,723
|
|
|
$
|
130
|
|
|
$
|
—
|
|
|
$
|
214,152
|
|
Balance at December 31, 2016
|
29,530,072
|
|
|
4,723,530
|
|
|
$
|
199,981
|
|
|
$
|
23,518
|
|
|
$
|
(652
|
)
|
|
$
|
—
|
|
|
$
|
222,847
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
28,769
|
|
|
—
|
|
|
—
|
|
|
28,769
|
|
|||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32
|
|
|
—
|
|
|
32
|
|
|||||
Issuance of restricted stock
|
306,902
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Withholding cash issued in lieu of restricted stock issuance
|
—
|
|
|
—
|
|
|
(4,891
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,891
|
)
|
|||||
Employee stock purchase program
|
22,634
|
|
|
—
|
|
|
445
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
445
|
|
|||||
Stock option exercises
|
76,285
|
|
|
—
|
|
|
602
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
602
|
|
|||||
Stock option based compensation expense
|
—
|
|
|
—
|
|
|
1,496
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,496
|
|
|||||
Restricted stock expense
|
—
|
|
|
—
|
|
|
4,210
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,210
|
|
|||||
Stock issued in acquisition of Reltco, Inc.
|
27,724
|
|
|
—
|
|
|
565
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
565
|
|
|||||
Non-voting common stock converted to voting common stock in private sale
|
80,000
|
|
|
(80,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Issuance of common stock in connection with secondary offering, net of issue costs
|
5,175,000
|
|
|
—
|
|
|
113,096
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
113,096
|
|
|||||
Dividends (distributions to shareholders)
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,580
|
)
|
|
—
|
|
|
—
|
|
|
(2,580
|
)
|
|||||
Balance at September 30, 2017
|
35,218,617
|
|
|
4,643,530
|
|
|
$
|
315,504
|
|
|
$
|
49,707
|
|
|
$
|
(620
|
)
|
|
$
|
—
|
|
|
$
|
364,591
|
|
|
Nine Months Ended
September 30, |
||||||
|
2017
|
|
2016
|
||||
Cash flows from operating activities
|
|
|
|
||||
Net income
|
$
|
28,769
|
|
|
$
|
8,284
|
|
Adjustments to reconcile net income to net cash used by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
7,020
|
|
|
3,201
|
|
||
Provision for loan losses
|
5,481
|
|
|
8,692
|
|
||
Amortization of premium on securities, net of accretion
|
355
|
|
|
135
|
|
||
Amortization of discount on unguaranteed loans, net
|
1,263
|
|
|
773
|
|
||
Deferred tax expense (benefit)
|
413
|
|
|
(510
|
)
|
||
Originations of loans held for sale
|
(884,741
|
)
|
|
(701,415
|
)
|
||
Proceeds from sales of loans held for sale
|
648,300
|
|
|
555,192
|
|
||
Net gains on sale of loans held for sale
|
(55,276
|
)
|
|
(52,813
|
)
|
||
Net loss on sale of foreclosed assets
|
30
|
|
|
61
|
|
||
Net increase in servicing assets
|
(1,398
|
)
|
|
(5,499
|
)
|
||
Gain on sale of securities available-for-sale
|
—
|
|
|
(1
|
)
|
||
Net loss on disposal of premises and equipment
|
213
|
|
|
—
|
|
||
Stock option based compensation expense
|
1,496
|
|
|
1,752
|
|
||
Restricted stock expense
|
4,210
|
|
|
5,893
|
|
||
Stock based compensation expense excess tax benefits
|
1,073
|
|
|
—
|
|
||
Business combination contingent consideration fair value adjustment
|
350
|
|
|
—
|
|
||
Changes in assets and liabilities:
|
|
|
|
||||
Other assets
|
(17,661
|
)
|
|
(858
|
)
|
||
Other liabilities
|
3,875
|
|
|
2,652
|
|
||
Net cash used by operating activities
|
(256,228
|
)
|
|
(174,461
|
)
|
||
Cash flows from investing activities
|
|
|
|
||||
Purchases of securities available-for-sale
|
(13,009
|
)
|
|
(24,946
|
)
|
||
Proceeds from sales, maturities, calls, and principal paydowns of securities available-for-sale
|
7,187
|
|
|
8,764
|
|
||
Proceeds from sale/collection of foreclosed assets
|
50
|
|
|
680
|
|
||
Business combination, net of cash acquired
|
(7,696
|
)
|
|
—
|
|
||
Maturities of certificates of deposit with other banks
|
4,000
|
|
|
2,750
|
|
||
Loan and lease originations and principal collections, net
|
(273,501
|
)
|
|
(154,738
|
)
|
||
Purchases of premises and equipment, net
|
(71,420
|
)
|
|
(1,194
|
)
|
||
Net cash used in investing activities
|
(354,389
|
)
|
|
(168,684
|
)
|
|
Nine Months Ended
September 30, |
||||||
|
2017
|
|
2016
|
||||
Cash flows from financing activities
|
|
|
|
||||
Net increase in deposits
|
527,815
|
|
|
598,229
|
|
||
Proceeds from long term borrowings
|
16,900
|
|
|
—
|
|
||
Repayment of long term borrowings
|
(25,971
|
)
|
|
(301
|
)
|
||
Proceeds from short term borrowings
|
23,100
|
|
|
—
|
|
||
Repayment of short term borrowings
|
(15,000
|
)
|
|
—
|
|
||
Stock option exercises
|
602
|
|
|
147
|
|
||
Employee stock purchase program
|
445
|
|
|
—
|
|
||
Withholding cash issued in lieu of restricted stock
|
(4,891
|
)
|
|
—
|
|
||
Sale of common stock, net of issuance costs
|
113,096
|
|
|
—
|
|
||
Shareholder dividend distributions
|
(2,580
|
)
|
|
(2,052
|
)
|
||
Net cash provided by financing activities
|
633,516
|
|
|
596,023
|
|
||
Net increase in cash and cash equivalents
|
22,899
|
|
|
252,878
|
|
||
Cash and cash equivalents, beginning
|
238,008
|
|
|
102,607
|
|
||
Cash and cash equivalents, ending
|
$
|
260,907
|
|
|
$
|
355,485
|
|
|
|
|
|
||||
Supplemental disclosure of cash flow information
|
|
|
|
||||
Interest paid
|
$
|
17,927
|
|
|
$
|
10,120
|
|
Income tax
|
7,094
|
|
|
5,739
|
|
||
|
|
|
|
||||
Supplemental disclosures of noncash operating, investing, and financing activities
|
|
|
|
||||
Unrealized holding gains on available-for-sale securities, net of taxes
|
$
|
32
|
|
|
$
|
322
|
|
Transfers from loans to foreclosed real estate and other repossessions
|
663
|
|
|
406
|
|
||
Transfers from foreclosed real estate to SBA receivable
|
—
|
|
|
96
|
|
||
Transfer of loans held for sale to loans held for investment
|
5,713
|
|
|
339,322
|
|
||
Transfer of loans held for investment to loans held for sale
|
18,990
|
|
|
2,296
|
|
||
Contingent consideration in acquisition of controlling interest in equity method investment
|
—
|
|
|
24
|
|
||
Transfers from short term borrowings to long term borrowings
|
8,100
|
|
|
—
|
|
||
Business combination:
|
|
|
|
||||
Assets acquired (excluding goodwill)
|
5,766
|
|
|
—
|
|
||
Liabilities assumed
|
4,681
|
|
|
—
|
|
||
Purchase price
|
8,363
|
|
|
—
|
|
||
Goodwill recorded
|
7,278
|
|
|
—
|
|
As of September 30, 2017
|
|
Amount
|
||
2017
|
|
$
|
463
|
|
2018
|
|
3,204
|
|
|
2019
|
|
3,214
|
|
|
2020
|
|
3,233
|
|
|
2021
|
|
3,254
|
|
|
Thereafter
|
|
19,625
|
|
|
Total
|
|
$
|
32,993
|
|
|
|
Three months ended
September 30, 2017 |
|
Nine months ended
September 30, 2017 |
||||
Decrease in:
|
|
|
|
|
||||
Net income
|
|
$
|
202
|
|
|
$
|
692
|
|
Basic EPS
|
|
$
|
0.01
|
|
|
$
|
0.02
|
|
Diluted EPS
|
|
$
|
0.01
|
|
|
$
|
0.02
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Basic earnings per share:
|
|
|
|
|
|
|
|
||||||||
Net income available to common shareholders
|
$
|
12,862
|
|
|
$
|
3,479
|
|
|
$
|
28,769
|
|
|
$
|
8,293
|
|
Weighted-average basic shares outstanding
|
37,366,041
|
|
|
34,206,943
|
|
|
35,485,371
|
|
|
34,191,014
|
|
||||
Basic earnings per share
|
$
|
0.34
|
|
|
$
|
0.10
|
|
|
$
|
0.81
|
|
|
$
|
0.24
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
||||||||
Net income available to common shareholders, for diluted earnings per share
|
$
|
12,862
|
|
|
$
|
3,479
|
|
|
$
|
28,769
|
|
|
$
|
8,293
|
|
Total weighted-average basic shares outstanding
|
37,366,041
|
|
|
34,206,943
|
|
|
35,485,371
|
|
|
34,191,014
|
|
||||
Add effect of dilutive stock options and restricted stock grants
|
1,278,636
|
|
|
794,874
|
|
|
1,244,683
|
|
|
812,408
|
|
||||
Total weighted-average diluted shares outstanding
|
38,644,677
|
|
|
35,001,817
|
|
|
36,730,054
|
|
|
35,003,422
|
|
||||
Diluted earnings per share
|
$
|
0.33
|
|
|
$
|
0.10
|
|
|
$
|
0.78
|
|
|
$
|
0.24
|
|
Anti-dilutive shares
|
243,199
|
|
|
1,778,995
|
|
|
250,698
|
|
|
1,778,995
|
|
Fair value of assets acquired
|
|
||
Cash
|
$
|
102
|
|
Accounts receivable
|
159
|
|
|
Intangible assets
|
5,505
|
|
|
Total assets acquired
|
5,766
|
|
|
Fair value of liabilities assumed
|
|
||
Contingent consideration
|
4,300
|
|
|
Accounts payable and other liabilities
|
381
|
|
|
Total liabilities assumed
|
4,681
|
|
|
Net assets acquired
|
$
|
1,085
|
|
Purchase price
|
|
||
Common shares issued
|
27,724
|
|
|
Purchase price per share of the Company’s common stock
|
$
|
20.38
|
|
Company common stock issued
|
565
|
|
|
Cash
|
7,798
|
|
|
Total purchase price
|
8,363
|
|
|
Goodwill
|
$
|
7,278
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Revenue (net interest income and noninterest income)
|
$
|
46,085
|
|
|
$
|
40,627
|
|
|
$
|
133,306
|
|
|
$
|
106,960
|
|
Net income available to common stockholders
|
12,862
|
|
|
4,183
|
|
|
28,807
|
|
|
9,952
|
|
||||
Basic earnings per share
|
0.34
|
|
|
0.12
|
|
|
0.81
|
|
|
0.29
|
|
||||
Diluted earnings per share
|
0.33
|
|
|
0.12
|
|
|
0.78
|
|
|
0.28
|
|
|
Amortized
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair
Value
|
||||||||
September 30, 2017
|
|
|
|
|
|
|
|
||||||||
US government agencies
|
$
|
17,829
|
|
|
$
|
11
|
|
|
$
|
35
|
|
|
$
|
17,805
|
|
Residential mortgage-backed securities
|
57,685
|
|
|
—
|
|
|
936
|
|
|
56,749
|
|
||||
Mutual fund
|
2,070
|
|
|
—
|
|
|
49
|
|
|
2,021
|
|
||||
Total
|
$
|
77,584
|
|
|
$
|
11
|
|
|
$
|
1,020
|
|
|
$
|
76,575
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2016
|
|
|
|
|
|
|
|
||||||||
US government agencies
|
$
|
17,803
|
|
|
$
|
52
|
|
|
$
|
32
|
|
|
$
|
17,823
|
|
Residential mortgage-backed securities
|
52,301
|
|
|
3
|
|
|
1,031
|
|
|
51,273
|
|
||||
Mutual fund
|
2,012
|
|
|
—
|
|
|
52
|
|
|
1,960
|
|
||||
Total
|
$
|
72,116
|
|
|
$
|
55
|
|
|
$
|
1,115
|
|
|
$
|
71,056
|
|
|
Less Than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
September 30, 2017
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||
US government agencies
|
$
|
4,996
|
|
|
$
|
16
|
|
|
$
|
1,496
|
|
|
$
|
19
|
|
|
$
|
6,492
|
|
|
$
|
35
|
|
Residential mortgage-backed securities
|
28,397
|
|
|
461
|
|
|
21,767
|
|
|
475
|
|
|
50,164
|
|
|
936
|
|
||||||
Mutual fund
|
2,021
|
|
|
49
|
|
|
—
|
|
|
—
|
|
|
2,021
|
|
|
49
|
|
||||||
Total
|
$
|
35,414
|
|
|
$
|
526
|
|
|
$
|
23,263
|
|
|
$
|
494
|
|
|
$
|
58,677
|
|
|
$
|
1,020
|
|
|
Less Than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
December 31, 2016
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||
US government agencies
|
$
|
6,508
|
|
|
$
|
32
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,508
|
|
|
$
|
32
|
|
Residential mortgage-backed securities
|
49,109
|
|
|
1,017
|
|
|
1,635
|
|
|
14
|
|
|
50,744
|
|
|
1,031
|
|
||||||
Mutual fund
|
1,960
|
|
|
52
|
|
|
—
|
|
|
—
|
|
|
1,960
|
|
|
52
|
|
||||||
Total
|
$
|
57,577
|
|
|
$
|
1,101
|
|
|
$
|
1,635
|
|
|
$
|
14
|
|
|
$
|
59,212
|
|
|
$
|
1,115
|
|
|
September 30, 2017
|
||||||
|
Available-for-Sale
|
||||||
|
Amortized
cost
|
|
Fair
value
|
||||
US government agencies
|
|
|
|
||||
Within one year
|
$
|
11,302
|
|
|
$
|
11,312
|
|
One to five years
|
6,527
|
|
|
6,492
|
|
||
Total
|
17,829
|
|
|
17,804
|
|
||
|
|
|
|
||||
Residential mortgage-backed securities
|
|
|
|
||||
Five to ten years
|
7,264
|
|
|
7,200
|
|
||
After 10 years
|
50,421
|
|
|
49,550
|
|
||
Total
|
57,685
|
|
|
56,750
|
|
||
|
|
|
|
||||
Total
|
$
|
75,514
|
|
|
$
|
74,554
|
|
|
September 30,
2017 |
|
December 31,
2016 |
||||
Commercial & Industrial
|
|
|
|
||||
Agriculture
|
$
|
2,698
|
|
|
$
|
1,714
|
|
Death Care Management
|
12,101
|
|
|
9,684
|
|
||
Healthcare
|
41,454
|
|
|
37,270
|
|
||
Independent Pharmacies
|
97,171
|
|
|
83,677
|
|
||
Registered Investment Advisors
|
91,241
|
|
|
68,335
|
|
||
Veterinary Industry
|
45,570
|
|
|
38,930
|
|
||
Other Industries
|
142,115
|
|
|
94,836
|
|
||
Total
|
432,350
|
|
|
334,446
|
|
||
Construction & Development
|
|
|
|
||||
Agriculture
|
34,636
|
|
|
32,372
|
|
||
Death Care Management
|
4,744
|
|
|
3,956
|
|
||
Healthcare
|
46,814
|
|
|
30,467
|
|
||
Independent Pharmacies
|
1,696
|
|
|
2,013
|
|
||
Registered Investment Advisors
|
329
|
|
|
294
|
|
||
Veterinary Industry
|
13,265
|
|
|
11,514
|
|
||
Other Industries
|
45,052
|
|
|
31,715
|
|
||
Total
|
146,536
|
|
|
112,331
|
|
||
Commercial Real Estate
|
|
|
|
||||
Agriculture
|
14,689
|
|
|
5,591
|
|
||
Death Care Management
|
61,462
|
|
|
52,510
|
|
||
Healthcare
|
121,331
|
|
|
114,281
|
|
||
Independent Pharmacies
|
18,508
|
|
|
15,151
|
|
||
Registered Investment Advisors
|
13,550
|
|
|
11,462
|
|
||
Veterinary Industry
|
110,028
|
|
|
102,906
|
|
||
Other Industries
|
106,418
|
|
|
46,245
|
|
||
Total
|
445,986
|
|
|
348,146
|
|
||
Commercial Land
|
|
|
|
||||
Agriculture
|
146,814
|
|
|
113,569
|
|
||
Total
|
146,814
|
|
|
113,569
|
|
||
Total Loans and Leases
1
|
1,171,686
|
|
|
908,492
|
|
||
Net Deferred Costs
|
8,038
|
|
|
7,648
|
|
||
Discount on SBA 7(a) and USDA Unguaranteed
2
|
(9,837
|
)
|
|
(8,574
|
)
|
||
Loans and Leases, Net of Unearned
|
$
|
1,169,887
|
|
|
$
|
907,566
|
|
1
|
Total loans and leases include $
40.4 million
and $
37.7 million
of U.S. government guaranteed loans as of
September 30, 2017
and
December 31, 2016
, respectively.
|
2
|
The Company measures the carrying value of the retained portion of loans sold at fair value under ASC Subtopic 825-10. The value of these retained loan balances is discounted based on the estimates derived from comparable unguaranteed loan sales.
|
|
Risk Grades
1 - 4
|
|
Risk Grade
5
|
|
Risk Grades
6 - 8
|
|
Total
|
||||||||
September 30, 2017
|
|
|
|
|
|
|
|
||||||||
Commercial & Industrial
|
|
|
|
|
|
|
|
||||||||
Agriculture
|
$
|
2,470
|
|
|
$
|
228
|
|
|
$
|
—
|
|
|
$
|
2,698
|
|
Death Care Management
|
11,976
|
|
|
118
|
|
|
7
|
|
|
12,101
|
|
||||
Healthcare
|
32,350
|
|
|
1,716
|
|
|
7,388
|
|
|
41,454
|
|
||||
Independent Pharmacies
|
87,173
|
|
|
6,523
|
|
|
3,475
|
|
|
97,171
|
|
||||
Registered Investment Advisors
|
87,940
|
|
|
2,566
|
|
|
735
|
|
|
91,241
|
|
||||
Veterinary Industry
|
41,738
|
|
|
1,833
|
|
|
1,999
|
|
|
45,570
|
|
||||
Other Industries
|
142,096
|
|
|
19
|
|
|
—
|
|
|
142,115
|
|
||||
Total
|
405,743
|
|
|
13,003
|
|
|
13,604
|
|
|
432,350
|
|
||||
Construction & Development
|
|
|
|
|
|
|
|
||||||||
Agriculture
|
34,636
|
|
|
—
|
|
|
—
|
|
|
34,636
|
|
||||
Death Care Management
|
4,744
|
|
|
—
|
|
|
—
|
|
|
4,744
|
|
||||
Healthcare
|
44,937
|
|
|
704
|
|
|
1,173
|
|
|
46,814
|
|
||||
Independent Pharmacies
|
1,696
|
|
|
—
|
|
|
—
|
|
|
1,696
|
|
||||
Registered Investment Advisors
|
329
|
|
|
—
|
|
|
—
|
|
|
329
|
|
||||
Veterinary Industry
|
13,265
|
|
|
—
|
|
|
—
|
|
|
13,265
|
|
||||
Other Industries
|
45,052
|
|
|
—
|
|
|
—
|
|
|
45,052
|
|
||||
Total
|
144,659
|
|
|
704
|
|
|
1,173
|
|
|
146,536
|
|
||||
Commercial Real Estate
|
|
|
|
|
|
|
|
||||||||
Agriculture
|
14,689
|
|
|
—
|
|
|
—
|
|
|
14,689
|
|
||||
Death Care Management
|
54,684
|
|
|
4,288
|
|
|
2,490
|
|
|
61,462
|
|
||||
Healthcare
|
111,943
|
|
|
5,050
|
|
|
4,338
|
|
|
121,331
|
|
||||
Independent Pharmacies
|
15,043
|
|
|
1,843
|
|
|
1,622
|
|
|
18,508
|
|
||||
Registered Investment Advisors
|
13,406
|
|
|
144
|
|
|
—
|
|
|
13,550
|
|
||||
Veterinary Industry
|
95,055
|
|
|
2,680
|
|
|
12,293
|
|
|
110,028
|
|
||||
Other Industries
|
105,738
|
|
|
680
|
|
|
—
|
|
|
106,418
|
|
||||
Total
|
410,558
|
|
|
14,685
|
|
|
20,743
|
|
|
445,986
|
|
||||
Commercial Land
|
|
|
|
|
|
|
|
||||||||
Agriculture
|
144,687
|
|
|
2,104
|
|
|
23
|
|
|
146,814
|
|
||||
Total
|
144,687
|
|
|
2,104
|
|
|
23
|
|
|
146,814
|
|
||||
Total
1
|
$
|
1,105,647
|
|
|
$
|
30,496
|
|
|
$
|
35,543
|
|
|
$
|
1,171,686
|
|
|
Risk Grades
1 - 4
|
|
Risk Grade
5
|
|
Risk Grades
6 - 8
|
|
Total
|
||||||||
December 31, 2016
|
|
|
|
|
|
|
|
||||||||
Commercial & Industrial
|
|
|
|
|
|
|
|
||||||||
Agriculture
|
$
|
1,656
|
|
|
$
|
58
|
|
|
$
|
—
|
|
|
$
|
1,714
|
|
Death Care Management
|
9,452
|
|
|
121
|
|
|
111
|
|
|
9,684
|
|
||||
Healthcare
|
28,723
|
|
|
681
|
|
|
7,866
|
|
|
37,270
|
|
||||
Independent Pharmacies
|
73,948
|
|
|
6,542
|
|
|
3,187
|
|
|
83,677
|
|
||||
Registered Investment Advisors
|
65,297
|
|
|
2,246
|
|
|
792
|
|
|
68,335
|
|
||||
Veterinary Industry
|
34,407
|
|
|
1,967
|
|
|
2,556
|
|
|
38,930
|
|
||||
Other Industries
|
94,736
|
|
|
100
|
|
|
—
|
|
|
94,836
|
|
||||
Total
|
308,219
|
|
|
11,715
|
|
|
14,512
|
|
|
334,446
|
|
||||
Construction & Development
|
|
|
|
|
|
|
|
||||||||
Agriculture
|
32,061
|
|
|
—
|
|
|
311
|
|
|
32,372
|
|
||||
Death Care Management
|
3,956
|
|
|
—
|
|
|
—
|
|
|
3,956
|
|
||||
Healthcare
|
30,467
|
|
|
—
|
|
|
—
|
|
|
30,467
|
|
||||
Independent Pharmacies
|
2,013
|
|
|
—
|
|
|
—
|
|
|
2,013
|
|
||||
Registered Investment Advisors
|
294
|
|
|
—
|
|
|
—
|
|
|
294
|
|
||||
Veterinary Industry
|
9,725
|
|
|
1,789
|
|
|
—
|
|
|
11,514
|
|
||||
Other Industries
|
31,715
|
|
|
—
|
|
|
—
|
|
|
31,715
|
|
||||
Total
|
110,231
|
|
|
1,789
|
|
|
311
|
|
|
112,331
|
|
||||
Commercial Real Estate
|
|
|
|
|
|
|
|
||||||||
Agriculture
|
5,591
|
|
|
—
|
|
|
—
|
|
|
5,591
|
|
||||
Death Care Management
|
46,427
|
|
|
4,314
|
|
|
1,769
|
|
|
52,510
|
|
||||
Healthcare
|
103,097
|
|
|
7,142
|
|
|
4,042
|
|
|
114,281
|
|
||||
Independent Pharmacies
|
12,654
|
|
|
1,968
|
|
|
529
|
|
|
15,151
|
|
||||
Registered Investment Advisors
|
11,462
|
|
|
—
|
|
|
—
|
|
|
11,462
|
|
||||
Veterinary Industry
|
88,168
|
|
|
3,995
|
|
|
10,743
|
|
|
102,906
|
|
||||
Other Industries
|
46,245
|
|
|
—
|
|
|
—
|
|
|
46,245
|
|
||||
Total
|
313,644
|
|
|
17,419
|
|
|
17,083
|
|
|
348,146
|
|
||||
Commercial Land
|
|
|
|
|
|
|
|
||||||||
Agriculture
|
112,333
|
|
|
1,138
|
|
|
98
|
|
|
113,569
|
|
||||
Total
|
112,333
|
|
|
1,138
|
|
|
98
|
|
|
113,569
|
|
||||
Total
1
|
$
|
844,427
|
|
|
$
|
32,061
|
|
|
$
|
32,004
|
|
|
$
|
908,492
|
|
1
|
Total loans and leases include $
40.4 million
of U.S. government guaranteed loans as of
September 30, 2017
, segregated by risk grade as follows: Risk Grades 1 – 4 = $
12.1 million
, Risk Grade 5 = $
3.7 million
, Risk Grades 6 – 8 = $
24.6 million
. As of
December 31, 2016
, total loans and leases include $
37.7 million
of U.S. government guaranteed loans, segregated by risk grade as follows: Risk Grades 1 – 4 = $
8.7 million
, Risk Grade 5 = $
7.7 million
, Risk Grades 6 – 8 = $
21.3 million
.
|
|
Less Than 30
Days Past
Due & Not
Accruing
|
|
30-89 Days
Past Due
& Accruing
|
|
30-89 Days
Past Due &
Not Accruing
|
|
Greater
Than 90
Days Past
Due
|
|
Total Not
Accruing & Past Due |
|
Current
|
|
Total Loans and Leases
|
|
90
Days or More Past Due & Still Accruing |
||||||||||||||||
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial & Industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Agriculture
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,698
|
|
|
$
|
2,698
|
|
|
$
|
—
|
|
Death Care Management
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,101
|
|
|
12,101
|
|
|
—
|
|
||||||||
Healthcare
|
535
|
|
|
76
|
|
|
16
|
|
|
6,152
|
|
|
6,779
|
|
|
34,675
|
|
|
41,454
|
|
|
—
|
|
||||||||
Independent Pharmacies
|
331
|
|
|
44
|
|
|
—
|
|
|
2,274
|
|
|
2,649
|
|
|
94,522
|
|
|
97,171
|
|
|
—
|
|
||||||||
Registered Investment Advisors
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
91,241
|
|
|
91,241
|
|
|
—
|
|
||||||||
Veterinary Industry
|
224
|
|
|
29
|
|
|
536
|
|
|
796
|
|
|
1,585
|
|
|
43,985
|
|
|
45,570
|
|
|
—
|
|
||||||||
Other Industries
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
142,115
|
|
|
142,115
|
|
|
—
|
|
||||||||
Total
|
1,090
|
|
|
149
|
|
|
552
|
|
|
9,222
|
|
|
11,013
|
|
|
421,337
|
|
|
432,350
|
|
|
—
|
|
||||||||
Construction & Development
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Agriculture
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34,636
|
|
|
34,636
|
|
|
—
|
|
||||||||
Death Care Management
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,744
|
|
|
4,744
|
|
|
—
|
|
||||||||
Healthcare
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
46,814
|
|
|
46,814
|
|
|
—
|
|
||||||||
Independent Pharmacies
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,696
|
|
|
1,696
|
|
|
—
|
|
||||||||
Registered Investment Advisors
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
329
|
|
|
329
|
|
|
—
|
|
||||||||
Veterinary Industry
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,265
|
|
|
13,265
|
|
|
—
|
|
||||||||
Other Industries
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
45,052
|
|
|
45,052
|
|
|
—
|
|
||||||||
Total
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
146,536
|
|
|
146,536
|
|
|
—
|
|
||||||||
Commercial Real Estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Agriculture
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,689
|
|
|
14,689
|
|
|
—
|
|
||||||||
Death Care Management
|
—
|
|
|
298
|
|
|
174
|
|
|
1,402
|
|
|
1,874
|
|
|
59,588
|
|
|
61,462
|
|
|
—
|
|
||||||||
Healthcare
|
40
|
|
|
—
|
|
|
2,679
|
|
|
829
|
|
|
3,548
|
|
|
117,783
|
|
|
121,331
|
|
|
—
|
|
||||||||
Independent Pharmacies
|
—
|
|
|
—
|
|
|
—
|
|
|
1,622
|
|
|
1,622
|
|
|
16,886
|
|
|
18,508
|
|
|
—
|
|
||||||||
Registered Investment Advisors
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,550
|
|
|
13,550
|
|
|
—
|
|
||||||||
Veterinary Industry
|
1,906
|
|
|
3,915
|
|
|
132
|
|
|
2,749
|
|
|
8,702
|
|
|
101,326
|
|
|
110,028
|
|
|
—
|
|
||||||||
Other Industries
|
—
|
|
|
7,750
|
|
|
—
|
|
|
—
|
|
|
7,750
|
|
|
98,668
|
|
|
106,418
|
|
|
—
|
|
||||||||
Total
|
1,946
|
|
|
11,963
|
|
|
2,985
|
|
|
6,602
|
|
|
23,496
|
|
|
422,490
|
|
|
445,986
|
|
|
—
|
|
||||||||
Commercial Land
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Agriculture
|
23
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
146,791
|
|
|
146,814
|
|
|
—
|
|
||||||||
Total
|
23
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
146,791
|
|
|
146,814
|
|
|
—
|
|
||||||||
Total
1
|
$
|
3,059
|
|
|
$
|
12,112
|
|
|
$
|
3,537
|
|
|
$
|
15,824
|
|
|
$
|
34,532
|
|
|
$
|
1,137,154
|
|
|
$
|
1,171,686
|
|
|
$
|
—
|
|
|
Less Than 30
Days Past
Due & Not
Accruing
|
|
30-89 Days
Past Due
& Accruing
|
|
30-89 Days
Past Due &
Not Accruing
|
|
Greater
Than 90
Days
Past Due
|
|
Total Not
Accruing & Past Due |
|
Current
|
|
Total Loans and Leases
|
|
90
Days or More Past Due & Still Accruing |
||||||||||||||||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial & Industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Agriculture
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,714
|
|
|
$
|
1,714
|
|
|
$
|
—
|
|
Death Care Management
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,684
|
|
|
9,684
|
|
|
—
|
|
||||||||
Healthcare
|
—
|
|
|
272
|
|
|
496
|
|
|
5,920
|
|
|
6,688
|
|
|
30,582
|
|
|
37,270
|
|
|
—
|
|
||||||||
Independent Pharmacies
|
42
|
|
|
293
|
|
|
408
|
|
|
2,349
|
|
|
3,092
|
|
|
80,585
|
|
|
83,677
|
|
|
—
|
|
||||||||
Registered Investment Advisors
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
68,335
|
|
|
68,335
|
|
|
—
|
|
||||||||
Veterinary Industry
|
32
|
|
|
151
|
|
|
646
|
|
|
1,441
|
|
|
2,270
|
|
|
36,660
|
|
|
38,930
|
|
|
—
|
|
||||||||
Other Industries
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
94,836
|
|
|
94,836
|
|
|
—
|
|
||||||||
Total
|
74
|
|
|
716
|
|
|
1,550
|
|
|
9,710
|
|
|
12,050
|
|
|
322,396
|
|
|
334,446
|
|
|
—
|
|
||||||||
Construction & Development
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Agriculture
|
231
|
|
|
80
|
|
|
—
|
|
|
—
|
|
|
311
|
|
|
32,061
|
|
|
32,372
|
|
|
—
|
|
||||||||
Death Care Management
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,956
|
|
|
3,956
|
|
|
—
|
|
||||||||
Healthcare
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30,467
|
|
|
30,467
|
|
|
—
|
|
||||||||
Independent Pharmacies
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,013
|
|
|
2,013
|
|
|
—
|
|
||||||||
Registered Investment Advisors
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
294
|
|
|
294
|
|
|
—
|
|
||||||||
Veterinary Industry
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,514
|
|
|
11,514
|
|
|
—
|
|
||||||||
Other Industries
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31,715
|
|
|
31,715
|
|
|
—
|
|
||||||||
Total
|
231
|
|
|
80
|
|
|
—
|
|
|
—
|
|
|
311
|
|
|
112,020
|
|
|
112,331
|
|
|
—
|
|
||||||||
Commercial Real Estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Agriculture
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,591
|
|
|
5,591
|
|
|
—
|
|
||||||||
Death Care Management
|
—
|
|
|
—
|
|
|
188
|
|
|
1,423
|
|
|
1,611
|
|
|
50,899
|
|
|
52,510
|
|
|
—
|
|
||||||||
Healthcare
|
—
|
|
|
—
|
|
|
3,180
|
|
|
45
|
|
|
3,225
|
|
|
111,056
|
|
|
114,281
|
|
|
—
|
|
||||||||
Independent Pharmacies
|
—
|
|
|
—
|
|
|
—
|
|
|
529
|
|
|
529
|
|
|
14,622
|
|
|
15,151
|
|
|
—
|
|
||||||||
Registered Investment Advisors
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,462
|
|
|
11,462
|
|
|
—
|
|
||||||||
Veterinary Industry
|
898
|
|
|
3,981
|
|
|
737
|
|
|
5,158
|
|
|
10,774
|
|
|
92,132
|
|
|
102,906
|
|
|
—
|
|
||||||||
Other Industries
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
46,245
|
|
|
46,245
|
|
|
—
|
|
||||||||
Total
|
898
|
|
|
3,981
|
|
|
4,105
|
|
|
7,155
|
|
|
16,139
|
|
|
332,007
|
|
|
348,146
|
|
|
—
|
|
||||||||
Commercial Land
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Agriculture
|
58
|
|
|
40
|
|
|
—
|
|
|
—
|
|
|
98
|
|
|
113,471
|
|
|
113,569
|
|
|
—
|
|
||||||||
Total
|
58
|
|
|
40
|
|
|
—
|
|
|
—
|
|
|
98
|
|
|
113,471
|
|
|
113,569
|
|
|
—
|
|
||||||||
Total
1
|
$
|
1,261
|
|
|
$
|
4,817
|
|
|
$
|
5,655
|
|
|
$
|
16,865
|
|
|
$
|
28,598
|
|
|
$
|
879,894
|
|
|
$
|
908,492
|
|
|
$
|
—
|
|
1
|
Total loans and leases include $
40.4 million
of U.S. government guaranteed loans as of
September 30, 2017
, of which $
14.3 million
is greater than 90 days past due, $
5.0 million
is 30-89 days past due and $
21.1 million
is included in current loans and leases as presented above. As of
December 31, 2016
, total loans and leases include $
37.7 million
of U.S. government guaranteed loans, of which $
13.7 million
is greater than 90 days past due, $
6.8 million
is 30-89 days past due and $
17.2 million
is included in current loans and leases as presented above.
|
September 30, 2017
|
Loan and Lease Balance
|
|
Guaranteed
Balance
|
|
Unguaranteed
Exposure
|
||||||
Commercial & Industrial
|
|
|
|
|
|
||||||
Healthcare
|
$
|
6,703
|
|
|
$
|
5,712
|
|
|
$
|
991
|
|
Independent Pharmacies
|
2,605
|
|
|
2,253
|
|
|
352
|
|
|||
Registered Investment Advisors
|
—
|
|
|
—
|
|
|
—
|
|
|||
Veterinary Industry
|
1,556
|
|
|
1,517
|
|
|
39
|
|
|||
Total
|
10,864
|
|
|
9,482
|
|
|
1,382
|
|
|||
Commercial Real Estate
|
|
|
|
|
|
||||||
Death Care Management
|
1,576
|
|
|
1,246
|
|
|
330
|
|
|||
Healthcare
|
3,548
|
|
|
2,749
|
|
|
799
|
|
|||
Independent Pharmacies
|
1,622
|
|
|
1,622
|
|
|
—
|
|
|||
Veterinary Industry
|
4,787
|
|
|
3,999
|
|
|
788
|
|
|||
Total
|
11,533
|
|
|
9,616
|
|
|
1,917
|
|
|||
Commercial Land
|
|
|
|
|
|
|
|||||
Agriculture
|
23
|
|
|
23
|
|
|
—
|
|
|||
Total
|
23
|
|
|
23
|
|
|
—
|
|
|||
Total
|
$
|
22,420
|
|
|
$
|
19,121
|
|
|
$
|
3,299
|
|
December 31, 2016
|
Loan and Lease Balance
|
|
Guaranteed
Balance
|
|
Unguaranteed
Exposure
|
||||||
Commercial & Industrial
|
|
|
|
|
|
||||||
Healthcare
|
$
|
6,416
|
|
|
$
|
5,152
|
|
|
$
|
1,264
|
|
Independent Pharmacies
|
2,799
|
|
|
2,204
|
|
|
595
|
|
|||
Veterinary Industry
|
2,119
|
|
|
2,079
|
|
|
40
|
|
|||
Total
|
11,334
|
|
|
9,435
|
|
|
1,899
|
|
|||
Construction & Development
|
|
|
|
|
|
||||||
Agriculture
|
231
|
|
|
173
|
|
|
58
|
|
|||
Total
|
231
|
|
|
173
|
|
|
58
|
|
|||
Commercial Real Estate
|
|
|
|
|
|
||||||
Death Care Management
|
1,611
|
|
|
1,263
|
|
|
348
|
|
|||
Healthcare
|
3,225
|
|
|
2,731
|
|
|
494
|
|
|||
Independent Pharmacies
|
529
|
|
|
—
|
|
|
529
|
|
|||
Veterinary Industry
|
6,793
|
|
|
5,395
|
|
|
1,398
|
|
|||
Total
|
12,158
|
|
|
9,389
|
|
|
2,769
|
|
|||
Commercial Land
|
|
|
|
|
|
||||||
Agriculture
|
58
|
|
|
—
|
|
|
58
|
|
|||
Total
|
58
|
|
|
—
|
|
|
58
|
|
|||
Total
|
$
|
23,781
|
|
|
$
|
18,997
|
|
|
$
|
4,784
|
|
•
|
All commercial loans and leases classified substandard or worse.
|
•
|
Any other delinquent loan or lease that is in a nonaccrual status, or any loan or lease that is delinquent more than 89 days and still accruing interest.
|
•
|
Any loan or lease which has been modified such that it meets the definition of a Troubled Debt Restructuring (TDR).
|
•
|
The Fair Market Value of Collateral method utilizes the value at which the collateral could be sold considering the appraised value, appraisal discount rate, prior liens and selling costs. The amount of the reserve is the deficit of the estimated collateral value compared to the loan or lease balance.
|
•
|
The Present Value of Future Cash Flows method takes into account the amount and timing of cash flows and the effective interest rate used to discount the cash flows.
|
Three months ended
|
Construction &
Development
|
|
Commercial
Real Estate
|
|
Commercial
& Industrial
|
|
Commercial
Land
|
|
Total
|
||||||||||
September 30, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Beginning Balance
|
$
|
1,603
|
|
|
$
|
7,494
|
|
|
$
|
8,351
|
|
|
$
|
2,112
|
|
|
$
|
19,560
|
|
Charge offs
|
—
|
|
|
(665
|
)
|
|
(343
|
)
|
|
—
|
|
|
(1,008
|
)
|
|||||
Recoveries
|
—
|
|
|
4
|
|
|
39
|
|
|
6
|
|
|
49
|
|
|||||
Provision
|
36
|
|
|
1,565
|
|
|
827
|
|
|
(2
|
)
|
|
2,426
|
|
|||||
Ending Balance
|
$
|
1,639
|
|
|
$
|
8,398
|
|
|
$
|
8,874
|
|
|
$
|
2,116
|
|
|
$
|
21,027
|
|
September 30, 2016
|
|
|
|
|
|
|
|
|
|
||||||||||
Beginning Balance
|
$
|
1,208
|
|
|
$
|
4,079
|
|
|
$
|
5,601
|
|
|
$
|
1,421
|
|
|
$
|
12,309
|
|
Charge offs
|
—
|
|
|
—
|
|
|
(939
|
)
|
|
—
|
|
|
(939
|
)
|
|||||
Recoveries
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
2
|
|
|||||
Provision
|
225
|
|
|
261
|
|
|
2,907
|
|
|
413
|
|
|
3,806
|
|
|||||
Ending Balance
|
$
|
1,433
|
|
|
$
|
4,341
|
|
|
$
|
7,570
|
|
|
$
|
1,834
|
|
|
$
|
15,178
|
|
Nine months ended
|
Construction &
Development |
|
Commercial
Real Estate |
|
Commercial
& Industrial |
|
Commercial
Land |
|
Total
|
||||||||||
September 30, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Beginning Balance
|
$
|
1,693
|
|
|
$
|
5,897
|
|
|
$
|
8,413
|
|
|
$
|
2,206
|
|
|
$
|
18,209
|
|
Charge offs
|
—
|
|
|
(952
|
)
|
|
(1,754
|
)
|
|
(35
|
)
|
|
(2,741
|
)
|
|||||
Recoveries
|
—
|
|
|
17
|
|
|
55
|
|
|
6
|
|
|
78
|
|
|||||
Provision
|
(54
|
)
|
|
3,436
|
|
|
2,160
|
|
|
(61
|
)
|
|
5,481
|
|
|||||
Ending Balance
|
$
|
1,639
|
|
|
$
|
8,398
|
|
|
$
|
8,874
|
|
|
$
|
2,116
|
|
|
$
|
21,027
|
|
September 30, 2016
|
|
|
|
|
|
|
|
|
|
||||||||||
Beginning Balance
|
$
|
1,064
|
|
|
$
|
2,486
|
|
|
$
|
2,766
|
|
|
$
|
1,099
|
|
|
$
|
7,415
|
|
Charge offs
|
—
|
|
|
(7
|
)
|
|
(1,307
|
)
|
|
(63
|
)
|
|
(1,377
|
)
|
|||||
Recoveries
|
—
|
|
|
4
|
|
|
444
|
|
|
—
|
|
|
448
|
|
|||||
Provision
|
369
|
|
|
1,858
|
|
|
5,667
|
|
|
798
|
|
|
8,692
|
|
|||||
Ending Balance
|
$
|
1,433
|
|
|
$
|
4,341
|
|
|
$
|
7,570
|
|
|
$
|
1,834
|
|
|
$
|
15,178
|
|
September 30, 2017
|
Construction &
Development
|
|
Commercial
Real Estate
|
|
Commercial
& Industrial
|
|
Commercial
Land
|
|
Total
|
||||||||||
Allowance for Loan and Lease Losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans and leases individually evaluated for impairment
|
$
|
53
|
|
|
$
|
1,610
|
|
|
$
|
1,290
|
|
|
$
|
—
|
|
|
$
|
2,953
|
|
Loans and leases collectively evaluated for impairment
2
|
1,586
|
|
|
6,788
|
|
|
7,584
|
|
|
2,116
|
|
|
18,074
|
|
|||||
Total allowance for loan and lease losses
|
$
|
1,639
|
|
|
$
|
8,398
|
|
|
$
|
8,874
|
|
|
$
|
2,116
|
|
|
$
|
21,027
|
|
Loans and leases receivable
1
:
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans and leases individually evaluated for impairment
|
$
|
1,151
|
|
|
$
|
16,231
|
|
|
$
|
7,321
|
|
|
$
|
—
|
|
|
$
|
24,703
|
|
Loans and leases collectively evaluated for impairment
2
|
145,385
|
|
|
429,755
|
|
|
425,029
|
|
|
146,814
|
|
|
1,146,983
|
|
|||||
Total loans and leases receivable
|
$
|
146,536
|
|
|
$
|
445,986
|
|
|
$
|
432,350
|
|
|
$
|
146,814
|
|
|
$
|
1,171,686
|
|
December 31, 2016
|
Construction &
Development
|
|
Commercial
Real Estate
|
|
Commercial
& Industrial
|
|
Commercial
Land
|
|
Total
|
||||||||||
Allowance for Loan and Lease Losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans and leases individually evaluated for impairment
|
$
|
—
|
|
|
$
|
1,496
|
|
|
$
|
1,458
|
|
|
$
|
—
|
|
|
$
|
2,954
|
|
Loans and leases collectively evaluated for impairment
2
|
1,693
|
|
|
4,401
|
|
|
6,955
|
|
|
2,206
|
|
|
15,255
|
|
|||||
Total allowance for loan and lease losses
|
$
|
1,693
|
|
|
$
|
5,897
|
|
|
$
|
8,413
|
|
|
$
|
2,206
|
|
|
$
|
18,209
|
|
Loans and leases receivable
1
:
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans and leases individually evaluated for impairment
|
$
|
—
|
|
|
$
|
16,359
|
|
|
$
|
6,884
|
|
|
$
|
—
|
|
|
$
|
23,243
|
|
Loans and leases collectively evaluated for impairment
2
|
112,331
|
|
|
331,787
|
|
|
327,562
|
|
|
113,569
|
|
|
885,249
|
|
|||||
Total loans and leases receivable
|
$
|
112,331
|
|
|
$
|
348,146
|
|
|
$
|
334,446
|
|
|
$
|
113,569
|
|
|
$
|
908,492
|
|
1
|
Loans and leases receivable includes $
40.4 million
of U.S. government guaranteed loans as of
September 30, 2017
, of which $
24.7 million
are impaired. As of
December 31, 2016
, loans and leases receivable includes $
37.7 million
of U.S. government guaranteed loans, of which $
22.1 million
are considered impaired.
|
2
|
Included in loans and leases collectively evaluated for impairment are impaired loans and leases with individual unguaranteed exposure of less than $100 thousand. As of
September 30, 2017
, these balances totaled $
13.4 million
, of which $
12 million
are guaranteed by the U.S. government and $
1.4 million
are unguaranteed. As of
December 31, 2016
, these balances totaled $
12.3 million
, of which $
10.0 million
are guaranteed by the U.S. government and $
2.3 million
are unguaranteed.
The allowance for loan and lease losses associated with these loans and leases totaled $
417 thousand
and $
438 thousand
as of
September 30, 2017
and
December 31, 2016
, respectively.
|
September 30, 2017
|
Recorded
Investment
|
|
Guaranteed
Balance
|
|
Unguaranteed
Exposure
|
||||||
Commercial & Industrial
|
|
|
|
|
|
||||||
Death Care Management
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
8
|
|
Healthcare
|
7,384
|
|
|
5,712
|
|
|
1,672
|
|
|||
Independent Pharmacies
|
4,282
|
|
|
2,514
|
|
|
1,768
|
|
|||
Registered Investment Advisors
|
743
|
|
|
—
|
|
|
743
|
|
|||
Veterinary Industry
|
2,407
|
|
|
1,605
|
|
|
802
|
|
|||
Total
|
14,824
|
|
|
9,831
|
|
|
4,993
|
|
|||
Construction & Development
|
|
|
|
|
|
||||||
Healthcare
|
1,151
|
|
|
880
|
|
|
271
|
|
|||
Total
|
1,151
|
|
|
880
|
|
|
271
|
|
|||
Commercial Real Estate
|
|
|
|
|
|
||||||
Death Care Management
|
2,486
|
|
|
1,246
|
|
|
1,240
|
|
|||
Healthcare
|
4,334
|
|
|
2,999
|
|
|
1,335
|
|
|||
Independent Pharmacies
|
1,622
|
|
|
1,622
|
|
|
—
|
|
|||
Veterinary Industry
|
13,700
|
|
|
8,051
|
|
|
5,649
|
|
|||
Total
|
22,142
|
|
|
13,918
|
|
|
8,224
|
|
|||
Commercial Land
|
|
|
|
|
|
||||||
Agriculture
|
23
|
|
|
23
|
|
|
—
|
|
|||
Total
|
23
|
|
|
23
|
|
|
—
|
|
|||
Total
|
$
|
38,140
|
|
|
$
|
24,652
|
|
|
$
|
13,488
|
|
December 31, 2016
|
Recorded
Investment
|
|
Guaranteed
Balance
|
|
Unguaranteed
Exposure
|
||||||
Commercial & Industrial
|
|
|
|
|
|
||||||
Death Care Management
|
$
|
111
|
|
|
$
|
—
|
|
|
$
|
111
|
|
Healthcare
|
7,923
|
|
|
5,453
|
|
|
2,470
|
|
|||
Independent Pharmacies
|
3,514
|
|
|
2,495
|
|
|
1,019
|
|
|||
Registered Investment Advisors
|
796
|
|
|
—
|
|
|
796
|
|
|||
Veterinary Industry
|
2,882
|
|
|
2,199
|
|
|
683
|
|
|||
Total
|
15,226
|
|
|
10,147
|
|
|
5,079
|
|
|||
Construction & Development
|
|
|
|
|
|
||||||
Agriculture
|
300
|
|
|
233
|
|
|
67
|
|
|||
Total
|
300
|
|
|
233
|
|
|
67
|
|
|||
Commercial Real Estate
|
|
|
|
|
|
||||||
Death Care Management
|
1,768
|
|
|
1,264
|
|
|
504
|
|
|||
Healthcare
|
4,044
|
|
|
2,985
|
|
|
1,059
|
|
|||
Independent Pharmacies
|
528
|
|
|
—
|
|
|
528
|
|
|||
Veterinary Industry
|
13,561
|
|
|
7,518
|
|
|
6,043
|
|
|||
Total
|
19,901
|
|
|
11,767
|
|
|
8,134
|
|
|||
Commercial Land
|
|
|
|
|
|
||||||
Agriculture
|
91
|
|
|
—
|
|
|
91
|
|
|||
Total
|
91
|
|
|
—
|
|
|
91
|
|
|||
Total
|
$
|
35,518
|
|
|
$
|
22,147
|
|
|
$
|
13,371
|
|
|
September 30, 2017
|
||||||||||||||||||
|
Recorded Investment
|
|
|
|
|
||||||||||||||
|
With a
Recorded
Allowance
|
|
With No
Recorded
Allowance
|
|
Total
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
Recorded
|
||||||||||
Commercial & Industrial
|
|
|
|
|
|
|
|
|
|
||||||||||
Death Care Management
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
8
|
|
|
$
|
7
|
|
|
$
|
—
|
|
Healthcare
|
6,675
|
|
|
709
|
|
|
7,384
|
|
|
8,034
|
|
|
681
|
|
|||||
Independent Pharmacies
|
2,622
|
|
|
1,660
|
|
|
4,282
|
|
|
4,697
|
|
|
76
|
|
|||||
Registered Investment Advisors
|
668
|
|
|
75
|
|
|
743
|
|
|
735
|
|
|
521
|
|
|||||
Veterinary Industry
|
2,033
|
|
|
374
|
|
|
2,407
|
|
|
2,800
|
|
|
173
|
|
|||||
Total
|
11,998
|
|
|
2,826
|
|
|
14,824
|
|
|
16,273
|
|
|
1,451
|
|
|||||
Construction & Development
|
|
|
|
|
|
|
|
|
|
||||||||||
Healthcare
|
1,151
|
|
|
—
|
|
|
1,151
|
|
|
1,173
|
|
|
53
|
|
|||||
Total
|
1,151
|
|
|
—
|
|
|
1,151
|
|
|
1,173
|
|
|
53
|
|
|||||
Commercial Real Estate
|
|
|
|
|
|
|
|
|
|
||||||||||
Death Care Management
|
1,867
|
|
|
619
|
|
|
2,486
|
|
|
2,625
|
|
|
187
|
|
|||||
Healthcare
|
3,759
|
|
|
575
|
|
|
4,334
|
|
|
4,352
|
|
|
261
|
|
|||||
Independent Pharmacies
|
1,622
|
|
|
—
|
|
|
1,622
|
|
|
2,163
|
|
|
9
|
|
|||||
Veterinary Industry
|
11,506
|
|
|
2,194
|
|
|
13,700
|
|
|
14,787
|
|
|
1,408
|
|
|||||
Total
|
18,754
|
|
|
3,388
|
|
|
22,142
|
|
|
23,927
|
|
|
1,865
|
|
|||||
Commercial Land
|
|
|
|
|
|
|
|
|
|
||||||||||
Agriculture
|
23
|
|
|
—
|
|
|
23
|
|
|
58
|
|
|
—
|
|
|||||
Total
|
23
|
|
|
—
|
|
|
23
|
|
|
58
|
|
|
—
|
|
|||||
Total Impaired Loans and Leases
|
$
|
31,926
|
|
|
$
|
6,214
|
|
|
$
|
38,140
|
|
|
$
|
41,431
|
|
|
$
|
3,369
|
|
|
December 31, 2016
|
||||||||||||||||||
|
Recorded Investment
|
|
|
|
|
||||||||||||||
|
With a
Recorded
Allowance
|
|
With No
Recorded
Allowance
|
|
Total
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
Recorded
|
||||||||||
Commercial & Industrial
|
|
|
|
|
|
|
|
|
|
||||||||||
Death Care Management
|
$
|
8
|
|
|
$
|
103
|
|
|
$
|
111
|
|
|
$
|
111
|
|
|
$
|
1
|
|
Healthcare
|
7,259
|
|
|
664
|
|
|
7,923
|
|
|
8,120
|
|
|
778
|
|
|||||
Independent Pharmacies
|
3,184
|
|
|
330
|
|
|
3,514
|
|
|
3,610
|
|
|
327
|
|
|||||
Registered Investment Advisors
|
796
|
|
|
—
|
|
|
796
|
|
|
792
|
|
|
514
|
|
|||||
Veterinary Industry
|
2,754
|
|
|
128
|
|
|
2,882
|
|
|
3,369
|
|
|
106
|
|
|||||
Total
|
14,001
|
|
|
1,225
|
|
|
15,226
|
|
|
16,002
|
|
|
1,726
|
|
|||||
Construction & Development
|
|
|
|
|
|
|
|
|
|
||||||||||
Agriculture
|
300
|
|
|
—
|
|
|
300
|
|
|
311
|
|
|
13
|
|
|||||
Total
|
300
|
|
|
—
|
|
|
300
|
|
|
311
|
|
|
13
|
|
|||||
Commercial Real Estate
|
|
|
|
|
|
|
|
|
|
||||||||||
Death Care Management
|
1,580
|
|
|
188
|
|
|
1,768
|
|
|
1,904
|
|
|
34
|
|
|||||
Healthcare
|
3,514
|
|
|
530
|
|
|
4,044
|
|
|
4,042
|
|
|
47
|
|
|||||
Independent Pharmacies
|
528
|
|
|
—
|
|
|
528
|
|
|
529
|
|
|
284
|
|
|||||
Veterinary Industry
|
11,193
|
|
|
2,368
|
|
|
13,561
|
|
|
14,283
|
|
|
1,273
|
|
|||||
Total
|
16,815
|
|
|
3,086
|
|
|
19,901
|
|
|
20,758
|
|
|
1,638
|
|
|||||
Commercial Land
|
|
|
|
|
|
|
|
|
|
||||||||||
Agriculture
|
91
|
|
|
—
|
|
|
91
|
|
|
161
|
|
|
15
|
|
|||||
Total
|
91
|
|
|
—
|
|
|
91
|
|
|
161
|
|
|
15
|
|
|||||
Total Impaired Loans and Leases
|
$
|
31,207
|
|
|
$
|
4,311
|
|
|
$
|
35,518
|
|
|
$
|
37,232
|
|
|
$
|
3,392
|
|
|
Three months ended
September 30, 2017 |
|
Three months ended
September 30, 2016 |
||||||||||||
|
Average
Balance |
|
Interest
Income Recognized |
|
Average
Balance |
|
Interest
Income Recognized |
||||||||
Commercial & Industrial
|
|
|
|
|
|
|
|
||||||||
Death Care Management
|
$
|
42
|
|
|
$
|
1
|
|
|
$
|
9
|
|
|
$
|
—
|
|
Healthcare
|
7,076
|
|
|
11
|
|
|
6,345
|
|
|
38
|
|
||||
Independent Pharmacies
|
4,266
|
|
|
26
|
|
|
1,946
|
|
|
18
|
|
||||
Registered Investment Advisors
|
894
|
|
|
14
|
|
|
742
|
|
|
7
|
|
||||
Veterinary Industry
|
2,511
|
|
|
11
|
|
|
2,501
|
|
|
13
|
|
||||
Total
|
14,789
|
|
|
63
|
|
|
11,543
|
|
|
76
|
|
||||
Construction & Development
|
|
|
|
|
|
|
|
||||||||
Healthcare
|
602
|
|
|
2
|
|
|
—
|
|
|
—
|
|
||||
Total
|
602
|
|
|
2
|
|
|
—
|
|
|
—
|
|
||||
Commercial Real Estate
|
|
|
|
|
|
|
|
||||||||
Death Care Management
|
2,512
|
|
|
13
|
|
|
1,801
|
|
|
2
|
|
||||
Healthcare
|
3,079
|
|
|
11
|
|
|
1,012
|
|
|
12
|
|
||||
Independent Pharmacies
|
1,985
|
|
|
—
|
|
|
551
|
|
|
2
|
|
||||
Veterinary Industry
|
13,950
|
|
|
132
|
|
|
12,218
|
|
|
87
|
|
||||
Total
|
21,526
|
|
|
156
|
|
|
15,582
|
|
|
103
|
|
||||
Commercial Land
|
|
|
|
|
|
|
|
||||||||
Agriculture
|
23
|
|
|
—
|
|
|
156
|
|
|
—
|
|
||||
Total
|
23
|
|
|
—
|
|
|
156
|
|
|
—
|
|
||||
Total
|
$
|
36,940
|
|
|
$
|
221
|
|
|
$
|
27,281
|
|
|
$
|
179
|
|
|
Nine months ended
September 30, 2017 |
|
Nine months ended
September 30, 2016 |
||||||||||||
|
Average
Balance |
|
Interest
Income Recognized |
|
Average
Balance |
|
Interest
Income Recognized |
||||||||
Commercial & Industrial
|
|
|
|
|
|
|
|
||||||||
Death Care Management
|
$
|
313
|
|
|
$
|
3
|
|
|
$
|
9
|
|
|
$
|
—
|
|
Healthcare
|
4,996
|
|
|
25
|
|
|
5,777
|
|
|
60
|
|
||||
Independent Pharmacies
|
7,998
|
|
|
52
|
|
|
1,927
|
|
|
51
|
|
||||
Registered Investment Advisors
|
1,438
|
|
|
28
|
|
|
588
|
|
|
13
|
|
||||
Veterinary Industry
|
4,329
|
|
|
24
|
|
|
2,715
|
|
|
29
|
|
||||
Total
|
19,074
|
|
|
132
|
|
|
11,016
|
|
|
153
|
|
||||
Construction & Development
|
|
|
|
|
|
|
|
||||||||
Healthcare
|
120
|
|
|
2
|
|
|
—
|
|
|
—
|
|
||||
Total
|
120
|
|
|
2
|
|
|
—
|
|
|
—
|
|
||||
Commercial Real Estate
|
|
|
|
|
|
|
|
||||||||
Death Care Management
|
2,030
|
|
|
30
|
|
|
1,811
|
|
|
5
|
|
||||
Healthcare
|
2,940
|
|
|
24
|
|
|
1,013
|
|
|
27
|
|
||||
Independent Pharmacies
|
149
|
|
|
—
|
|
|
551
|
|
|
2
|
|
||||
Veterinary Industry
|
13,069
|
|
|
278
|
|
|
12,266
|
|
|
249
|
|
||||
Total
|
18,188
|
|
|
332
|
|
|
15,641
|
|
|
283
|
|
||||
Commercial Land
|
|
|
|
|
|
|
|
||||||||
Agriculture
|
199
|
|
|
—
|
|
|
355
|
|
|
—
|
|
||||
Total
|
199
|
|
|
—
|
|
|
355
|
|
|
—
|
|
||||
Total
|
$
|
37,581
|
|
|
$
|
466
|
|
|
$
|
27,012
|
|
|
$
|
436
|
|
|
Three months ended September 30, 2017
|
|
Three months ended September 30, 2016
|
||||||||||||||||||
|
All Restructurings
|
|
All Restructurings
|
||||||||||||||||||
|
Number of Loans
|
|
Pre-
modification Recorded Investment |
|
Post-
modification Recorded Investment |
|
Number of
Loans |
|
Pre-
modification Recorded Investment |
|
Post-
modification Recorded Investment |
||||||||||
Payment Deferral and Extended Amortization
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial & Industrial
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Independent Pharmacies
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Total Payment Deferral and Extended Amortization
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Payment Deferral
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial & Industrial
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Healthcare
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
440
|
|
|
440
|
|
||||
Veterinary Industry
|
2
|
|
|
559
|
|
|
559
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total Payment Deferral
|
2
|
|
|
559
|
|
|
559
|
|
|
1
|
|
|
440
|
|
|
440
|
|
||||
Total
|
2
|
|
|
$
|
559
|
|
|
$
|
559
|
|
|
1
|
|
|
$
|
440
|
|
|
$
|
440
|
|
|
Nine months ended September 30, 2017
|
|
Nine months ended September 30, 2016
|
||||||||||||||||||
|
All Restructurings
|
|
All Restructurings
|
||||||||||||||||||
|
Number of
Loans |
|
Pre-
modification Recorded Investment |
|
Post-
modification Recorded Investment |
|
Number of
Loans |
|
Pre-
modification Recorded Investment |
|
Post-
modification Recorded Investment |
||||||||||
Payment Deferral and Extended Amortization
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial & Industrial
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Independent Pharmacies
|
1
|
|
|
262
|
|
|
262
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total Payment Deferral and Extended Amortization
|
1
|
|
|
262
|
|
|
262
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Payment Deferral
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial & Industrial
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Healthcare
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
440
|
|
|
440
|
|
||||
Veterinary Industry
|
2
|
|
|
559
|
|
|
559
|
|
|
1
|
|
|
420
|
|
|
420
|
|
||||
Total Payment Deferral
|
2
|
|
|
559
|
|
|
559
|
|
|
2
|
|
|
860
|
|
|
860
|
|
||||
Total
|
3
|
|
|
$
|
821
|
|
|
$
|
821
|
|
|
2
|
|
|
$
|
860
|
|
|
$
|
860
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Balance at beginning of period
|
$
|
53,675
|
|
|
$
|
48,454
|
|
|
$
|
51,994
|
|
|
$
|
44,230
|
|
Additions, net
|
3,527
|
|
|
4,964
|
|
|
9,412
|
|
|
11,923
|
|
||||
Fair value changes:
|
|
|
|
|
|
|
|
||||||||
Due to changes in valuation inputs or assumptions
|
(789
|
)
|
|
(1,452
|
)
|
|
342
|
|
|
(821
|
)
|
||||
Decay due to increases in principal paydowns or runoff
|
(3,021
|
)
|
|
(2,237
|
)
|
|
(8,356
|
)
|
|
(5,603
|
)
|
||||
Balance at end of period
|
$
|
53,392
|
|
|
$
|
49,729
|
|
|
$
|
53,392
|
|
|
$
|
49,729
|
|
|
September 30,
2017 |
|
December 31,
2016 |
||||
Long term borrowings
|
|
|
|
||||
On September 11, 2014, the Company financed the construction of an additional building located on the Company’s Tiburon Drive main campus with a $24 million construction line of credit with an unaffiliated commercial bank, secured by both properties at its Tiburon Drive main facility location. Payments were interest only through September 11, 2016 at a fixed rate of 3.95% for a term of 84 months. Monthly principal and interest payments of $146 thousand began in October 2016 with all principal and accrued interest due on September 11, 2021. The construction line is fully disbursed and there was no remaining available credit on this construction line at September 30, 2017.
|
$
|
23,195
|
|
|
$
|
23,864
|
|
On February 23, 2015, the Company transferred two related party loans to an unaffiliated commercial bank in exchange for $4.7 million. The exchange price equated to the unpaid principal balance plus accrued but uncollected interest at the time of transfer. The terms of the transfer agreement with the unaffiliated commercial bank identified the transaction as a secured borrowing for accounting purposes. Interest accrues at prime plus 1% with monthly principal and interest payments over a term of 60 months. The interest rate at September 30, 2017 is 5.25%. The maturity date is October 5, 2019. The pledged collateral is classified in other assets with a fair value of $3.7 million at September 30, 2017. Underlying loans carry a risk grade of 3 and are current with no delinquencies.
|
3,677
|
|
|
3,979
|
|
||
Total long term borrowings
|
$
|
26,872
|
|
|
$
|
27,843
|
|
September 30, 2017
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Investment securities available-for-sale
|
|
|
|
|
|
|
|
||||||||
US government agencies
|
$
|
17,804
|
|
|
$
|
—
|
|
|
$
|
17,804
|
|
|
$
|
—
|
|
Residential mortgage-backed securities
|
56,750
|
|
|
—
|
|
|
56,750
|
|
|
—
|
|
||||
Mutual fund
|
2,021
|
|
|
—
|
|
|
2,021
|
|
|
—
|
|
||||
Servicing assets
1
|
53,392
|
|
|
—
|
|
|
—
|
|
|
53,392
|
|
||||
Total assets at fair value
|
$
|
129,967
|
|
|
$
|
—
|
|
|
$
|
76,575
|
|
|
$
|
53,392
|
|
|
|
|
|
|
|
|
|
||||||||
Contingent consideration liability
2
|
$
|
4,650
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,650
|
|
Total liabilities at fair value
|
$
|
4,650
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,650
|
|
December 31, 2016
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Investment securities available-for-sale
|
|
|
|
|
|
|
|
||||||||
US government agencies
|
$
|
17,823
|
|
|
$
|
—
|
|
|
$
|
17,823
|
|
|
$
|
—
|
|
Residential mortgage-backed securities
|
51,273
|
|
|
—
|
|
|
51,273
|
|
|
—
|
|
||||
Mutual fund
|
1,960
|
|
|
—
|
|
|
1,960
|
|
|
—
|
|
||||
Servicing assets
1
|
51,994
|
|
|
—
|
|
|
—
|
|
|
51,994
|
|
||||
Total assets at fair value
|
$
|
123,050
|
|
|
$
|
—
|
|
|
$
|
71,056
|
|
|
$
|
51,994
|
|
1
|
See
Note 7
for a rollforward of recurring Level 3 fair values for servicing assets and various assumptions used in the fair value measurement.
|
2
|
See Note 4 for activity related to the recurring Level 3 fair value for the contingent consideration liability and various assumptions used in the fair value measurement.
|
September 30, 2017
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Impaired loans and leases
|
$
|
28,557
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
28,557
|
|
Foreclosed assets
|
2,231
|
|
|
—
|
|
|
—
|
|
|
2,231
|
|
||||
Total assets at fair value
|
$
|
30,788
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
30,788
|
|
December 31, 2016
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Impaired loans and leases
|
$
|
27,815
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
27,815
|
|
Foreclosed assets
|
1,648
|
|
|
—
|
|
|
—
|
|
|
1,648
|
|
||||
Total assets at fair value
|
$
|
29,463
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
29,463
|
|
Level 3 Assets with Significant
Unobservable Inputs
|
|
Fair Value
|
|
Valuation Technique
|
|
Significant
Unobservable
Inputs
|
|
Range
|
||
Impaired Loans and Leases
|
|
$
|
28,557
|
|
|
Discounted appraisals
Discounted expected cash flows |
|
Appraisal adjustments
(1)
Interest rate & repayment term
|
|
0% to 25% Weighted average discount rate 6.01%
|
Foreclosed Assets
|
|
$
|
2,231
|
|
|
Discounted appraisals
|
|
Appraisal adjustments
(1)
|
|
10% to 35%
|
Level 3 Assets with Significant
Unobservable Inputs
|
|
Fair Value
|
|
Valuation Technique
|
|
Significant
Unobservable
Inputs
|
|
Range
|
||
Impaired Loans and Leases
|
|
$
|
27,815
|
|
|
Discounted appraisals
Discounted expected cash flows |
|
Appraisal adjustments
(1)
Interest rate & repayment term
|
|
0% to 25% Weighted average discount rate 5.28%
|
Foreclosed Assets
|
|
$
|
1,648
|
|
|
Discounted appraisals
|
|
Appraisal adjustments
(1)
|
|
10% to 35%
|
(1)
|
Appraisals may be adjusted by management for customized discounting criteria, estimated sales costs, and proprietary qualitative adjustments.
|
September 30, 2017
|
Carrying
Amount
|
|
Quoted Price
In Active
Markets for
Identical Assets
/Liabilities
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Total
Fair
Value
|
||||||||||
Financial assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
$
|
260,907
|
|
|
$
|
260,907
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
260,907
|
|
Certificates of deposit with other banks
|
3,250
|
|
|
3,251
|
|
|
—
|
|
|
—
|
|
|
3,251
|
|
|||||
Investment securities, available-for-sale
|
76,575
|
|
|
—
|
|
|
76,575
|
|
|
—
|
|
|
76,575
|
|
|||||
Loans held for sale
|
692,586
|
|
|
—
|
|
|
—
|
|
|
770,923
|
|
|
770,923
|
|
|||||
Loans and leases, net of allowance for loan and lease losses
|
1,148,860
|
|
|
—
|
|
|
—
|
|
|
1,151,601
|
|
|
1,151,601
|
|
|||||
Servicing assets
|
53,392
|
|
|
—
|
|
|
—
|
|
|
53,392
|
|
|
53,392
|
|
|||||
Accrued interest receivable
|
9,669
|
|
|
9,669
|
|
|
—
|
|
|
—
|
|
|
9,669
|
|
|||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
2,012,891
|
|
|
—
|
|
|
1,996,493
|
|
|
—
|
|
|
1,996,493
|
|
|||||
Accrued interest payable
|
270
|
|
|
270
|
|
|
—
|
|
|
—
|
|
|
270
|
|
|||||
Long term borrowings
|
26,872
|
|
|
—
|
|
|
—
|
|
|
27,904
|
|
|
27,904
|
|
December 31, 2016
|
Carrying
Amount
|
|
Quoted Price
In Active
Markets for
Identical Assets
/Liabilities
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Total
Fair
Value
|
||||||||||
Financial assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
$
|
238,008
|
|
|
$
|
238,008
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
238,008
|
|
Certificates of deposit with other banks
|
7,250
|
|
|
7,236
|
|
|
—
|
|
|
—
|
|
|
7,236
|
|
|||||
Investment securities, available-for-sale
|
71,056
|
|
|
—
|
|
|
71,056
|
|
|
—
|
|
|
71,056
|
|
|||||
Loans held for sale
|
394,278
|
|
|
—
|
|
|
—
|
|
|
426,220
|
|
|
426,220
|
|
|||||
Loans and leases, net of allowance for loan and lease losses
|
889,357
|
|
|
—
|
|
|
—
|
|
|
873,158
|
|
|
873,158
|
|
|||||
Servicing assets
|
51,994
|
|
|
—
|
|
|
—
|
|
|
51,994
|
|
|
51,994
|
|
|||||
Accrued interest receivable
|
7,520
|
|
|
7,520
|
|
|
—
|
|
|
—
|
|
|
7,520
|
|
|||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
1,485,076
|
|
|
—
|
|
|
1,469,173
|
|
|
—
|
|
|
1,469,173
|
|
|||||
Accrued interest payable
|
319
|
|
|
319
|
|
|
—
|
|
|
—
|
|
|
319
|
|
|||||
Long term borrowings
|
27,843
|
|
|
—
|
|
|
—
|
|
|
29,559
|
|
|
29,559
|
|
|
September 30,
2017 |
|
December 31,
2016 |
||||
Commitments to extend credit
|
$
|
1,563,688
|
|
|
$
|
1,342,271
|
|
Standby letters of credit
|
1,861
|
|
|
343
|
|
||
Solar purchase commitments
|
182,610
|
|
|
—
|
|
||
Airplane purchase agreement commitments
|
—
|
|
|
21,500
|
|
||
Total unfunded off-balance-sheet credit risk
|
$
|
1,748,159
|
|
|
$
|
1,364,114
|
|
|
Shares
|
|
Weighted
Average
Exercise Price
|
|
Weighted
Average
Remaining
Contractual
Term
|
|
Aggregate
Intrinsic
Value
|
|||||
Outstanding at December 31, 2016
|
3,478,208
|
|
|
$
|
11.51
|
|
|
|
|
|
||
Exercised
|
76,285
|
|
|
7.89
|
|
|
|
|
|
|||
Forfeited
|
203,671
|
|
|
14.12
|
|
|
|
|
|
|||
Granted
|
—
|
|
|
—
|
|
|
|
|
|
|||
Outstanding at September 30, 2017
|
3,198,252
|
|
|
$
|
11.43
|
|
|
7.31 years
|
|
$
|
38,411,802
|
|
Exercisable at September 30, 2017
|
703,425
|
|
|
$
|
10.41
|
|
|
7.06 years
|
|
$
|
9,171,805
|
|
|
Shares
|
|
Weighted
Average
Exercise Price
|
|
Weighted
Average
Remaining
Contractual
Term
|
|
Aggregate
Intrinsic
Value
|
|||||
Outstanding at December 31, 2015
|
3,546,992
|
|
|
$
|
11.17
|
|
|
|
|
|
||
Exercised
|
25,406
|
|
|
5.79
|
|
|
|
|
|
|||
Forfeited
|
166,483
|
|
|
9.01
|
|
|
|
|
|
|||
Granted
|
169,987
|
|
|
14.02
|
|
|
|
|
|
|||
Outstanding at September 30, 2016
|
3,525,090
|
|
|
$
|
11.44
|
|
|
8.30 years
|
|
$
|
14,212,513
|
|
Exercisable at September 30, 2016
|
478,141
|
|
|
$
|
9.22
|
|
|
7.84 years
|
|
$
|
2,887,741
|
|
|
Shares
|
|
Weighted
Average
Grant Date
Fair Value
|
|||
Non-vested at December 31, 2016
|
3,016,100
|
|
|
$
|
4.78
|
|
Granted
|
—
|
|
|
—
|
|
|
Vested
|
317,602
|
|
|
4.17
|
|
|
Forfeited
|
203,671
|
|
|
6.03
|
|
|
Non-vested at September 30, 2017
|
2,494,827
|
|
|
$
|
4.75
|
|
|
Shares
|
|
Weighted
Average
Grant Date
Fair Value
|
|||
Non-vested at December 31, 2015
|
3,393,441
|
|
|
$
|
4.56
|
|
Granted
|
169,987
|
|
|
6.58
|
|
|
Vested
|
349,996
|
|
|
4.22
|
|
|
Forfeited
|
166,483
|
|
|
3.13
|
|
|
Non-vested at September 30, 2016
|
3,046,949
|
|
|
$
|
4.79
|
|
|
Shares
|
|
Weighted
Average Grant
Date Fair Value
|
|||
Non-vested at December 31, 2016
|
2,364,500
|
|
|
$
|
8.28
|
|
Granted
|
233,791
|
|
|
—
|
|
|
Vested
|
—
|
|
|
—
|
|
|
Forfeited
|
4,007
|
|
|
11.38
|
|
|
Non-vested at September 30, 2017
|
2,594,284
|
|
|
$
|
8.79
|
|
•
|
deterioration in the financial condition of borrowers resulting in significant increases in the Company’s loan and lease losses and provisions for those losses and other adverse impacts to results of operations and financial condition;
|
•
|
changes in Small Business Administration ("SBA") rules, regulations and loan products, including specifically the Section 7(a) program, changes in SBA standard operating procedures or changes to the status of Live Oak Banking Company (the "Bank") as an SBA Preferred Lender;
|
•
|
changes in rules, regulations or procedures for other government loan programs, including those of the United States Department of Agriculture;
|
•
|
changes in interest rates that affect the level and composition of deposits, loan demand and the values of loan collateral, securities, and interest sensitive assets and liabilities;
|
•
|
the failure of assumptions underlying the establishment of reserves for possible loan and lease losses;
|
•
|
changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments;
|
•
|
a reduction in or the termination of the Company’s ability to use the technology-based platform that is critical to the success of the Company’s business model, including a failure in or a breach of the Company’s operational or security systems or those of its third party service providers;
|
•
|
changes in financial market conditions, either internationally, nationally or locally in areas in which the Company conducts operations, including reductions in rates of business formation and growth, demand for the Company’s products and services, commercial and residential real estate development and prices, premiums paid in the secondary market for the sale of loans, and valuation of servicing rights;
|
•
|
changes in accounting principles, policies, and guidelines applicable to bank holding companies and banking;
|
•
|
fluctuations in markets for equity, fixed-income, commercial paper and other securities, which could affect availability, market liquidity levels, and pricing;
|
•
|
the effects of competition from other commercial banks, non-bank lenders, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and mutual funds, and other financial institutions operating in the Company’s market area and elsewhere, including institutions operating regionally, nationally and internationally, together with such competitors offering banking products and services by mail, telephone and the Internet;
|
•
|
the Company's ability to attract and retain key personnel;
|
•
|
changes in governmental monetary and fiscal policies as well as other legislative and regulatory changes, including with respect to SBA lending programs and investment tax credits;
|
•
|
changes in political and economic conditions;
|
•
|
the impact of heightened regulatory scrutiny of financial products and services, primarily led by the Consumer Financial Protection Bureau;
|
•
|
the Company's ability to comply with any requirements imposed on it by regulators, and the potential negative consequences that may result;
|
•
|
operational, compliance and other factors, including conditions in local areas in which the Company conducts business such as inclement weather or a reduction in the availability of services or products for which loan proceeds will be used, that could prevent or delay closing and funding loans before they can be sold in the secondary market;
|
•
|
the effect of any mergers, acquisitions or other transactions, to which the Company or the Bank may from time to time be a party, including management’s ability to successfully integrate any businesses acquired;
|
•
|
other risk factors listed from time to time in reports that the Company files with the SEC, including in the Company’s
2016
Annual Report and the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2017; and
|
•
|
the success at managing the risks involved in the foregoing.
|
•
|
Increased net interest income of $9.4 million, or 80.8%, predominately driven by significant growth in the loans and leases held for sale and held for investment portfolios combined with a much higher net interest margin;
|
•
|
Decreased provision for loan and lease losses of $1.4 million was driven largely by improvements in the performance of the loan portfolio;
|
•
|
Increased loan servicing revenue of $630 thousand, or 10.8%, as a result of continued growth in the servicing portfolio due to ongoing loan sales;
|
•
|
Revenues of $2.0 million from the title insurance company subsidiary acquired in the first quarter of 2017;
|
•
|
Increases in other noninterest income of $1.1 million, or 171.4%, related to the growth in the Company’s renewable energy leasing business and trust management services; and
|
•
|
Decreased income tax expense of $7.6 million, or 297.5%, due to the ongoing operation of the renewable energy leasing business yielding investment tax credits.
|
•
|
Increased net interest income of $24.8 million, or 82.0%, predominately driven by significant growth in the loans and leases held for sale and held for investment portfolios combined with a significantly higher net interest margin;
|
•
|
Decreased provision for loan and lease losses of $3.2 million principally driven by the one-time transfer of $318.8 million in unguaranteed loans from held for sale to held for investment classification during the second quarter of 2016;
|
•
|
Increased loan servicing revenue of $2.9 million, or 18.2%, as a result of continued growth in the servicing portfolio due to ongoing loan sales;
|
•
|
Increased net gains on sales of loans of $2.5 million, or 4.7%, due to a higher year-to-date sale volume partially offset by a decrease in the average net gain per loan sold;
|
•
|
Revenues of $5.8 million from the title insurance company subsidiary acquired in the first quarter of 2017; and
|
•
|
Decreased income tax expense of $10.3 million, or 159.9%, due to the ongoing operation of the renewable energy leasing business yielding investment tax credits.
|
|
|
Three months ended September 30,
|
||||||||||||||||||||
|
|
2017
|
|
2016
|
||||||||||||||||||
|
|
Average Balance
|
|
Interest
|
|
Average Yield/Rate
|
|
Average Balance
|
|
Interest
|
|
Average Yield/Rate
|
||||||||||
Interest earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest earning balances in other banks
|
|
$
|
292,066
|
|
|
$
|
870
|
|
|
1.18
|
%
|
|
$
|
231,238
|
|
|
$
|
264
|
|
|
0.45
|
%
|
Investment securities
|
|
73,312
|
|
|
325
|
|
|
1.76
|
|
|
69,869
|
|
|
337
|
|
|
1.91
|
|
||||
Loans held for sale
|
|
653,342
|
|
|
9,922
|
|
|
6.03
|
|
|
358,867
|
|
|
4,996
|
|
|
5.52
|
|
||||
Loans and leases held for investment
(1)
|
|
1,116,209
|
|
|
17,055
|
|
|
6.06
|
|
|
728,041
|
|
|
9,965
|
|
|
5.43
|
|
||||
Total interest earning assets
|
|
2,134,929
|
|
|
28,172
|
|
|
5.24
|
|
|
1,388,015
|
|
|
15,562
|
|
|
4.45
|
|
||||
Less: allowance for loan and lease losses
|
|
(19,544
|
)
|
|
|
|
|
|
(12,188
|
)
|
|
|
|
|
||||||||
Non-interest earning assets
|
|
242,014
|
|
|
|
|
|
|
146,159
|
|
|
|
|
|
||||||||
Total assets
|
|
$
|
2,357,399
|
|
|
|
|
|
|
$
|
1,521,986
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest bearing checking
|
|
$
|
35,127
|
|
|
$
|
51
|
|
|
0.58
|
%
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
%
|
Savings
|
|
196,220
|
|
|
682
|
|
|
1.38
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Money market accounts
|
|
453,985
|
|
|
1,303
|
|
|
1.14
|
|
|
471,447
|
|
|
866
|
|
|
0.73
|
|
||||
Certificates of deposit
|
|
1,257,072
|
|
|
4,722
|
|
|
1.49
|
|
|
767,887
|
|
|
2,823
|
|
|
1.46
|
|
||||
Total deposits
|
|
1,942,404
|
|
|
6,758
|
|
|
1.38
|
|
|
1,239,334
|
|
|
3,689
|
|
|
1.18
|
|
||||
Other borrowings
|
|
42,219
|
|
|
389
|
|
|
3.66
|
|
|
28,172
|
|
|
242
|
|
|
3.41
|
|
||||
Total interest bearing liabilities
|
|
1,984,623
|
|
|
7,147
|
|
|
1.43
|
|
|
1,267,506
|
|
|
3,931
|
|
|
1.23
|
|
||||
Non-interest bearing deposits
|
|
43,652
|
|
|
|
|
|
|
20,742
|
|
|
|
|
|
||||||||
Non-interest bearing liabilities
|
|
22,650
|
|
|
|
|
|
|
20,807
|
|
|
|
|
|
||||||||
Shareholders' equity
|
|
306,474
|
|
|
|
|
|
|
212,914
|
|
|
|
|
|
||||||||
Noncontrolling interest
|
|
—
|
|
|
|
|
|
|
17
|
|
|
|
|
|
||||||||
Total liabilities and shareholders' equity
|
|
$
|
2,357,399
|
|
|
|
|
|
|
$
|
1,521,986
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income and interest rate spread
|
|
|
|
$
|
21,025
|
|
|
3.81
|
%
|
|
|
|
$
|
11,631
|
|
|
3.22
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest margin
|
|
|
|
|
|
3.91
|
|
|
|
|
|
|
3.32
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities
|
|
|
|
|
|
107.57
|
%
|
|
|
|
|
|
109.51
|
%
|
(1)
|
Average loan and lease balances include non-accruing loans.
|
|
|
Nine months ended September 30,
|
||||||||||||||||||||
|
|
2017
|
|
2016
|
||||||||||||||||||
|
|
Average Balance
|
|
Interest
|
|
Average Yield/Rate
|
|
Average Balance
|
|
Interest
|
|
Average Yield/Rate
|
||||||||||
Interest earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest earning balances in other banks
|
|
$
|
229,074
|
|
|
$
|
1,682
|
|
|
0.98
|
%
|
|
$
|
189,944
|
|
|
$
|
650
|
|
|
0.46
|
%
|
Investment securities
|
|
71,319
|
|
|
964
|
|
|
1.81
|
|
|
60,057
|
|
|
840
|
|
|
1.86
|
|
||||
Loans held for sale
|
|
561,408
|
|
|
24,679
|
|
|
5.88
|
|
|
428,316
|
|
|
17,666
|
|
|
5.49
|
|
||||
Loans and leases held for investment
(1)
|
|
1,041,265
|
|
|
45,611
|
|
|
5.86
|
|
|
522,757
|
|
|
21,202
|
|
|
5.40
|
|
||||
Total interest earning assets
|
|
1,903,066
|
|
|
72,936
|
|
|
5.12
|
|
|
1,201,074
|
|
|
40,358
|
|
|
4.48
|
|
||||
Less: allowance for loan and lease losses
|
|
(18,652
|
)
|
|
|
|
|
|
(9,463
|
)
|
|
|
|
|
||||||||
Non-interest earning assets
|
|
206,653
|
|
|
|
|
|
|
143,876
|
|
|
|
|
|
||||||||
Total assets
|
|
$
|
2,091,067
|
|
|
|
|
|
|
$
|
1,335,487
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest bearing checking
|
|
$
|
39,973
|
|
|
$
|
173
|
|
|
0.58
|
%
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
%
|
Savings
|
|
67,395
|
|
|
693
|
|
|
1.37
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Money market accounts
|
|
469,505
|
|
|
3,365
|
|
|
0.96
|
|
|
423,923
|
|
|
2,384
|
|
|
0.75
|
|
||||
Certificates of deposit
|
|
1,163,081
|
|
|
12,662
|
|
|
1.46
|
|
|
637,469
|
|
|
6,992
|
|
|
1.46
|
|
||||
Total deposits
|
|
1,739,954
|
|
|
16,893
|
|
|
1.30
|
|
|
1,061,392
|
|
|
9,376
|
|
|
1.18
|
|
||||
Other borrowings
|
|
37,736
|
|
|
985
|
|
|
3.49
|
|
|
28,345
|
|
|
725
|
|
|
3.41
|
|
||||
Total interest bearing liabilities
|
|
1,777,690
|
|
|
17,878
|
|
|
1.34
|
|
|
1,089,737
|
|
|
10,101
|
|
|
1.23
|
|
||||
Non-interest bearing deposits
|
|
35,073
|
|
|
|
|
|
|
19,314
|
|
|
|
|
|
||||||||
Non-interest bearing liabilities
|
|
22,288
|
|
|
|
|
|
|
19,444
|
|
|
|
|
|
||||||||
Shareholders’ equity
|
|
256,016
|
|
|
|
|
|
|
206,967
|
|
|
|
|
|
||||||||
Noncontrolling interest
|
|
—
|
|
|
|
|
|
|
25
|
|
|
|
|
|
||||||||
Total liabilities and shareholders’ equity
|
|
$
|
2,091,067
|
|
|
|
|
|
|
$
|
1,335,487
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income and interest rate spread
|
|
|
|
$
|
55,058
|
|
|
3.78
|
%
|
|
|
|
$
|
30,257
|
|
|
3.25
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest margin
|
|
|
|
|
|
3.87
|
|
|
|
|
|
|
3.36
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities
|
|
|
|
|
|
107.05
|
%
|
|
|
|
|
|
110.22
|
%
|
(1)
|
Average loan and lease balances include non-accruing loans.
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||||||||||
|
2017 vs. 2016
|
|
2017 vs. 2016
|
||||||||||||||||||||
|
Increase (Decrease) Due to
|
|
Increase (Decrease) Due to
|
||||||||||||||||||||
|
Rate
|
|
Volume
|
|
Total
|
|
Rate
|
|
Volume
|
|
Total
|
||||||||||||
Interest income:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest earning balances in other banks
|
$
|
481
|
|
|
$
|
125
|
|
|
$
|
606
|
|
|
$
|
821
|
|
|
$
|
211
|
|
|
$
|
1,032
|
|
Investment securities
|
(28
|
)
|
|
16
|
|
|
(12
|
)
|
|
(31
|
)
|
|
155
|
|
|
124
|
|
||||||
Loans held for sale
|
640
|
|
|
4,286
|
|
|
4,926
|
|
|
1,343
|
|
|
5,670
|
|
|
7,013
|
|
||||||
Loans and leases held for investment
|
1,468
|
|
|
5,622
|
|
|
7,090
|
|
|
2,538
|
|
|
21,871
|
|
|
24,409
|
|
||||||
Total interest income
|
2,561
|
|
|
10,049
|
|
|
12,610
|
|
|
4,671
|
|
|
27,907
|
|
|
32,578
|
|
||||||
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest bearing checking
|
—
|
|
|
51
|
|
|
51
|
|
|
—
|
|
|
173
|
|
|
173
|
|
||||||
Savings
|
—
|
|
|
682
|
|
|
682
|
|
|
—
|
|
|
693
|
|
|
693
|
|
||||||
Money market accounts
|
478
|
|
|
(41
|
)
|
|
437
|
|
|
689
|
|
|
292
|
|
|
981
|
|
||||||
Certificates of deposit
|
81
|
|
|
1,818
|
|
|
1,899
|
|
|
(74
|
)
|
|
5,744
|
|
|
5,670
|
|
||||||
Other borrowings
|
22
|
|
|
125
|
|
|
147
|
|
|
26
|
|
|
234
|
|
|
260
|
|
||||||
Total interest expense
|
581
|
|
|
2,635
|
|
|
3,216
|
|
|
641
|
|
|
7,136
|
|
|
7,777
|
|
||||||
Net interest income
|
$
|
1,980
|
|
|
$
|
7,414
|
|
|
$
|
9,394
|
|
|
$
|
4,030
|
|
|
$
|
20,771
|
|
|
$
|
24,801
|
|
|
Nine Months Ended
September 30, |
|
Increase (Decrease)
|
|||||||||||
|
2017
|
|
2016
|
|
Amount
|
|
Percent
|
|||||||
Noninterest income
|
|
|
|
|
|
|
|
|||||||
Loan servicing revenue
|
$
|
18,587
|
|
|
$
|
15,725
|
|
|
$
|
2,862
|
|
|
18.20
|
%
|
Loan servicing asset revaluation
|
(6,864
|
)
|
|
(5,051
|
)
|
|
(1,813
|
)
|
|
35.89
|
|
|||
Net gains on sales of loans
|
55,276
|
|
|
52,813
|
|
|
2,463
|
|
|
4.66
|
|
|||
Gain on sale of investment securities available-for-sale
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
(100.00
|
)
|
|||
Construction supervision fee income
|
1,077
|
|
|
1,799
|
|
|
(722
|
)
|
|
(40.13
|
)
|
|||
Title insurance income
|
5,803
|
|
|
—
|
|
|
5,803
|
|
|
100.00
|
|
|||
Other noninterest income
|
3,601
|
|
|
1,925
|
|
|
1,676
|
|
|
87.06
|
|
|||
Total noninterest income
|
$
|
77,480
|
|
|
$
|
67,212
|
|
|
$
|
10,268
|
|
|
15.28
|
%
|
|
Three months ended September 30,
|
|
Three months ended
June 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Amount of loans and leases originated
|
$
|
395,682
|
|
|
$
|
381,050
|
|
|
$
|
586,471
|
|
|
$
|
356,865
|
|
Guaranteed portions of loans sold
|
163,843
|
|
|
210,610
|
|
|
203,714
|
|
|
135,555
|
|
||||
Outstanding balance of guaranteed loans sold
(1)
|
2,584,163
|
|
|
2,102,468
|
|
|
2,521,506
|
|
|
1,970,908
|
|
|
Nine months ended September 30,
|
|
For years ended December 31,
|
||||||||||||||||||||
|
2017
|
|
2016
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||||
Amount of loans and leases originated
|
$
|
1,450,816
|
|
|
$
|
1,022,445
|
|
|
$
|
1,537,010
|
|
|
$
|
1,158,640
|
|
|
$
|
848,090
|
|
|
$
|
498,752
|
|
Guaranteed portions of loans sold
|
576,272
|
|
|
501,808
|
|
|
761,933
|
|
|
640,886
|
|
|
433,912
|
|
|
339,342
|
|
||||||
Outstanding balance of guaranteed loans sold
(1)
|
2,584,163
|
|
|
2,102,468
|
|
|
2,278,618
|
|
|
1,779,989
|
|
|
1,302,828
|
|
|
1,005,764
|
|
(1)
|
This represents the outstanding principal balance of guaranteed loans serviced, as of the last day of the applicable period, which have been sold into the secondary market.
|
|
Three Months Ended
September 30, |
|
Increase (Decrease)
|
|||||||||||
|
2017
|
|
2016
|
|
Amount
|
|
Percent
|
|||||||
Noninterest expense
|
|
|
|
|
|
|
|
|||||||
Salaries and employee benefits
|
$
|
19,037
|
|
|
$
|
17,471
|
|
|
$
|
1,566
|
|
|
8.96
|
%
|
Non-staff expenses:
|
|
|
|
|
|
|
|
|||||||
Travel expense
|
2,289
|
|
|
2,218
|
|
|
71
|
|
|
3.20
|
|
|||
Professional services expense
|
1,068
|
|
|
907
|
|
|
161
|
|
|
17.75
|
|
|||
Advertising and marketing expense
|
1,516
|
|
|
1,097
|
|
|
419
|
|
|
38.20
|
|
|||
Occupancy expense
|
1,473
|
|
|
1,058
|
|
|
415
|
|
|
39.22
|
|
|||
Data processing expense
|
1,982
|
|
|
1,252
|
|
|
730
|
|
|
58.31
|
|
|||
Equipment expense
|
2,228
|
|
|
611
|
|
|
1,617
|
|
|
264.65
|
|
|||
Other loan origination and maintenance expense
|
1,601
|
|
|
806
|
|
|
795
|
|
|
98.64
|
|
|||
FDIC insurance
|
858
|
|
|
210
|
|
|
648
|
|
|
308.57
|
|
|||
Title insurance closing services expense
|
687
|
|
|
—
|
|
|
687
|
|
|
100.00
|
|
|||
Other expense
|
3,117
|
|
|
1,588
|
|
|
1,529
|
|
|
96.28
|
|
|||
Total non-staff expenses
|
16,819
|
|
|
9,747
|
|
|
7,072
|
|
|
72.56
|
|
|||
Total noninterest expense
|
$
|
35,856
|
|
|
$
|
27,218
|
|
|
$
|
8,638
|
|
|
31.74
|
%
|
|
Nine Months Ended
September 30, |
|
Increase (Decrease)
|
|||||||||||
|
2017
|
|
2016
|
|
Amount
|
|
Percent
|
|||||||
Noninterest expense
|
|
|
|
|
|
|
|
|||||||
Salaries and employee benefits
|
$
|
55,687
|
|
|
$
|
45,875
|
|
|
$
|
9,812
|
|
|
21.39
|
%
|
Non-staff expenses:
|
|
|
|
|
|
|
|
|||||||
Travel expense
|
6,035
|
|
|
6,394
|
|
|
(359
|
)
|
|
(5.61
|
)
|
|||
Professional services expense
|
4,228
|
|
|
2,345
|
|
|
1,883
|
|
|
80.30
|
|
|||
Advertising and marketing expense
|
4,977
|
|
|
3,425
|
|
|
1,552
|
|
|
45.31
|
|
|||
Occupancy expense
|
4,018
|
|
|
3,306
|
|
|
712
|
|
|
21.54
|
|
|||
Data processing expense
|
5,536
|
|
|
3,864
|
|
|
1,672
|
|
|
43.27
|
|
|||
Equipment expense
|
5,005
|
|
|
1,696
|
|
|
3,309
|
|
|
195.11
|
|
|||
Other loan origination and maintenance expense
|
3,587
|
|
|
2,001
|
|
|
1,586
|
|
|
79.26
|
|
|||
FDIC insurance
|
2,308
|
|
|
507
|
|
|
1,801
|
|
|
355.23
|
|
|||
Title insurance closing services expense
|
1,877
|
|
|
—
|
|
|
1,877
|
|
|
100.00
|
|
|||
Other expense
|
8,883
|
|
|
4,648
|
|
|
4,235
|
|
|
91.11
|
|
|||
Total non-staff expenses
|
46,454
|
|
|
28,186
|
|
|
18,268
|
|
|
64.81
|
|
|||
Total noninterest expense
|
$
|
102,141
|
|
|
$
|
74,061
|
|
|
$
|
28,080
|
|
|
37.91
|
%
|
•
|
Increased cash and due from banks due to the successful secondary offering completed in August of 2017 of $113.1 million and growth from deposit gathering campaigns generating $527.8 million in new deposits;
|
•
|
Growth in loan and lease originations combined with longer retention times of loans held for sale, comprised largely of loans intentionally held for longer periods and those in newer verticals which require a period of loan advances to become fully funded prior to being sold;
|
•
|
Growth in premises and equipment related primarily to construction of a new aircraft hangar, the addition of two new aircraft in replacement of two older ones and the addition of solar panels to meet leasing commitments;
|
•
|
Increased other assets largely related to:
|
◦
|
goodwill and intangibles generated by the first quarter acquisition of Reltco, and
|
◦
|
income taxes receivable arising from investment tax credits generated by investment in solar panels classified in premises and equipment in which the Company is the lessor.
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
Nonperforming assets:
|
|
|
|
||||
Total nonperforming loans (all on nonaccrual)
|
$
|
22,420
|
|
|
$
|
23,781
|
|
Total accruing loans past due 90 days or more
|
—
|
|
|
—
|
|
||
Foreclosed assets
|
2,231
|
|
|
1,648
|
|
||
Total troubled debt restructurings
|
8,527
|
|
|
9,856
|
|
||
Less nonaccrual troubled debt restructurings
|
(6,078
|
)
|
|
(7,688
|
)
|
||
Total performing troubled debt restructurings
|
2,449
|
|
|
2,168
|
|
||
Total nonperforming assets and troubled debt restructurings
|
$
|
27,100
|
|
|
$
|
27,597
|
|
Total nonperforming loans to total loans and leases held for investment
|
1.92
|
%
|
|
2.62
|
%
|
||
Total nonperforming loans to total assets
|
0.92
|
%
|
|
1.36
|
%
|
||
Total nonperforming assets and troubled debt restructurings to total assets
|
1.11
|
%
|
|
1.57
|
%
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
Nonperforming assets guaranteed by U.S. government:
|
|
|
|
||||
Total nonperforming loans guaranteed by the SBA (all on nonaccrual)
|
$
|
19,121
|
|
|
$
|
18,997
|
|
Total accruing loans past due 90 days or more guaranteed by the SBA
|
—
|
|
|
—
|
|
||
Foreclosed assets guaranteed by the SBA
|
1,785
|
|
|
1,402
|
|
||
Total troubled debt restructurings guaranteed by the SBA
|
5,427
|
|
|
6,723
|
|
||
Less nonaccrual troubled debt restructurings guaranteed by the SBA
|
(5,340
|
)
|
|
(6,602
|
)
|
||
Total performing troubled debt restructurings guaranteed by SBA
|
87
|
|
|
121
|
|
||
Total nonperforming assets and troubled debt restructurings guaranteed by the SBA
|
$
|
20,993
|
|
|
$
|
20,520
|
|
Total nonperforming loans not guaranteed by the SBA to total held for investment loans and leases
|
0.28
|
%
|
|
0.53
|
%
|
||
Total nonperforming loans not guaranteed by the SBA to total assets
|
0.14
|
%
|
|
0.27
|
%
|
||
Total nonperforming assets and troubled debt restructurings not guaranteed by the SBA to total assets
|
0.25
|
%
|
|
0.40
|
%
|
|
Payments Due by Period
|
||||||||||||||||||
|
Total
|
|
Less than
One
Year
|
|
One to
Three
Years
|
|
Three to
Five
Years
|
|
More
Than Five
Years
|
||||||||||
Contractual Obligations
|
|
||||||||||||||||||
Deposits without stated maturity
|
$
|
828,947
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Time deposits
|
1,183,944
|
|
|
860,718
|
|
|
209,019
|
|
|
114,207
|
|
|
—
|
|
|||||
Long term borrowings
|
26,872
|
|
|
844
|
|
|
5,472
|
|
|
20,556
|
|
|
—
|
|
|||||
Operating lease obligations
1
|
3,037
|
|
|
941
|
|
|
1,345
|
|
|
463
|
|
|
288
|
|
|||||
Total
|
$
|
2,042,800
|
|
|
$
|
862,503
|
|
|
$
|
215,836
|
|
|
$
|
135,226
|
|
|
$
|
288
|
|
1
|
The following obligations only include base rent and does not include any additional payments such as taxes, insurance, maintenance and repairs or common area maintenance.
|
|
Actual
|
|
Minimum
Capital
Requirement
|
|
Minimum
To Be Well
Capitalized Under
Prompt Corrective
Action Provisions
(1)
|
|||||||||||||||
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
Consolidated - September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Common Equity Tier 1 (to Risk-Weighted Assets)
|
$
|
323,780
|
|
|
17.72
|
%
|
|
$
|
82,232
|
|
|
4.50
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Total Capital (to Risk-Weighted Assets)
|
$
|
344,807
|
|
|
18.87
|
%
|
|
$
|
146,191
|
|
|
8.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Tier 1 Capital (to Risk-Weighted Assets)
|
$
|
323,780
|
|
|
17.72
|
%
|
|
$
|
109,643
|
|
|
6.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Tier 1 Capital (to Average Assets)
|
$
|
323,780
|
|
|
13.95
|
%
|
|
$
|
92,863
|
|
|
4.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Bank - September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Common Equity Tier 1 (to Risk-Weighted Assets)
|
$
|
198,353
|
|
|
11.26
|
%
|
|
$
|
79,287
|
|
|
4.50
|
%
|
|
$
|
114,525
|
|
|
6.50
|
%
|
Total Capital (to Risk-Weighted Assets)
|
$
|
219,651
|
|
|
12.47
|
%
|
|
$
|
140,954
|
|
|
8.00
|
%
|
|
$
|
176,193
|
|
|
10.00
|
%
|
Tier 1 Capital (to Risk-Weighted Assets)
|
$
|
198,353
|
|
|
11.26
|
%
|
|
$
|
105,716
|
|
|
6.00
|
%
|
|
$
|
140,954
|
|
|
8.00
|
%
|
Tier 1 Capital (to Average Assets)
|
$
|
198,353
|
|
|
8.78
|
%
|
|
$
|
90,382
|
|
|
4.00
|
%
|
|
$
|
112,978
|
|
|
5.00
|
%
|
Consolidated - December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Common Equity Tier 1 (to Risk-Weighted Assets)
|
$
|
206,670
|
|
|
15.31
|
%
|
|
$
|
60,732
|
|
|
4.50
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Total Capital (to Risk-Weighted Assets)
|
$
|
223,559
|
|
|
16.56
|
%
|
|
$
|
107,968
|
|
|
8.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Tier 1 Capital (to Risk-Weighted Assets)
|
$
|
206,670
|
|
|
15.31
|
%
|
|
$
|
80,976
|
|
|
6.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Tier 1 Capital (to Average Assets)
|
$
|
206,670
|
|
|
12.00
|
%
|
|
$
|
68,919
|
|
|
4.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Bank - December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Common Equity Tier 1 (to Risk-Weighted Assets)
|
$
|
139,078
|
|
|
10.68
|
%
|
|
$
|
58,579
|
|
|
4.50
|
%
|
|
$
|
84,615
|
|
|
6.50
|
%
|
Total Capital (to Risk-Weighted Assets)
|
$
|
155,423
|
|
|
11.94
|
%
|
|
$
|
104,141
|
|
|
8.00
|
%
|
|
$
|
130,177
|
|
|
10.00
|
%
|
Tier 1 Capital (to Risk-Weighted Assets)
|
$
|
139,078
|
|
|
10.68
|
%
|
|
$
|
78,106
|
|
|
6.00
|
%
|
|
$
|
104,141
|
|
|
8.00
|
%
|
Tier 1 Capital (to Average Assets)
|
$
|
139,078
|
|
|
8.41
|
%
|
|
$
|
66,142
|
|
|
4.00
|
%
|
|
$
|
82,678
|
|
|
5.00
|
%
|
(1)
|
Prompt corrective action provisions are not applicable at the bank holding company level.
|
•
|
Determination of the allowance for loan losses;
|
•
|
Valuation of servicing assets;
|
•
|
Valuation of foreclosed assets; and
|
•
|
Valuation of earn-out contingent liability.
|
Exhibit
No.
|
|
Description of Exhibit
|
|
|
|
|
|
3.1
|
|
|
|
3.2
|
|
|
|
4.1
|
|
|
|
4.2
|
|
|
|
31.1
|
|
|
|
31.2
|
|
|
|
32
|
|
|
|
101
|
|
|
Interactive data files pursuant to Rule 405 of Regulation S-T: (i) Consolidated Balance Sheets as of September 30, 2017 and December 31, 2016; (ii) Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2017 and 2016; (iii) Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2017 and 2016; (iv) Consolidated Statements of Changes in Shareholders’ Equity for the Nine Months Ended September 30, 2017 and 2016; (v) Consolidated Statements of Cash Flows for the Nine Months Ended Septemeber 30, 2017 and 2016; and (vi) Notes to Consolidated Financial Statements*
|
**
|
Furnished herewith. This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that Section. Such exhibit shall not be deemed incorporated into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.
|
|
Live Oak Bancshares, Inc.
|
|
|
(
Registrant
)
|
|
|
|
|
Date: November 6, 2017
|
By:
|
/
s
/ S. Brett Caines
|
|
|
S. Brett Caines
|
|
|
Chief Financial Officer
|
1 Year Live Oak Bancshares Chart |
1 Month Live Oak Bancshares Chart |
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