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Share Name | Share Symbol | Market | Type |
---|---|---|---|
SmartFinancial Inc | NASDAQ:SMBK | 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% | 22.98 | 22.52 | 23.28 | 0 | 01:00:00 |
x
|
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Tennessee
|
|
62-1173944
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
|
|
|
5401 Kingston Pike, Suite 600 Knoxville, Tennessee
|
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37919
|
(Address of principal executive offices)
|
|
(Zip Code)
|
|
|
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865-453-2650
|
|
|
(Registrant’s telephone number, including area code)
|
|
(Former name, former address and former fiscal
|
|
|
year, if changes since last report)
|
Large accelerated filer
¨
|
Accelerated filer
x
|
Non-accelerated filer
¨
|
Smaller reporting company
x
|
Emerging growth company
¨
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
|
|
|
|
|
|
|
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|
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|
Unaudited
September 30, 2018 |
|
December 31,
2017 |
||||
ASSETS
|
|
|
|
|
|
|
||
Cash and due from banks
|
|
$
|
42,375,257
|
|
|
$
|
64,097,287
|
|
Interest-bearing deposits at other financial institutions
|
|
87,728,951
|
|
|
41,965,597
|
|
||
Federal funds sold
|
|
—
|
|
|
6,964,000
|
|
||
Total cash and cash equivalents
|
|
130,104,208
|
|
|
113,026,884
|
|
||
|
|
|
|
|
||||
Securities available-for-sale, at fair value
|
|
173,038,716
|
|
|
151,944,567
|
|
||
Restricted investments, at cost
|
|
10,735,550
|
|
|
6,430,700
|
|
||
Loans, net of allowance for loan losses of $7,156,025 at September 30, 2018 and $5,860,291 at December 31, 2017
|
|
1,578,037,643
|
|
|
1,317,397,909
|
|
||
Bank premises and equipment, net
|
|
51,138,105
|
|
|
43,000,249
|
|
||
Foreclosed assets
|
|
4,230,451
|
|
|
3,254,392
|
|
||
Goodwill and core deposit intangible, net
|
|
68,253,527
|
|
|
50,836,840
|
|
||
Cash surrender value of life insurance
|
|
22,088,149
|
|
|
21,646,894
|
|
||
Other assets
|
|
13,319,698
|
|
|
13,232,247
|
|
||
Total assets
|
|
$
|
2,050,946,047
|
|
|
$
|
1,720,770,682
|
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
||
Deposits:
|
|
|
|
|
|
|
||
Noninterest-bearing demand deposits
|
|
$
|
301,197,142
|
|
|
$
|
220,520,287
|
|
Interest-bearing demand deposits
|
|
267,146,177
|
|
|
231,643,508
|
|
||
Money market and savings deposits
|
|
570,171,632
|
|
|
543,644,830
|
|
||
Time deposits
|
|
568,796,395
|
|
|
442,774,094
|
|
||
Total deposits
|
|
1,707,311,346
|
|
|
1,438,582,719
|
|
||
|
|
|
|
|
||||
Securities sold under agreement to repurchase
|
|
16,786,492
|
|
|
24,054,730
|
|
||
Federal Home Loan Bank advances and other borrowings
|
|
25,324,000
|
|
|
43,600,000
|
|
||
Subordinated debt
|
|
39,158,444
|
|
|
—
|
|
||
Accrued expenses and other liabilities
|
|
10,723,902
|
|
|
8,681,393
|
|
||
Total liabilities
|
|
1,799,304,184
|
|
|
1,514,918,842
|
|
||
|
|
|
|
|
||||
Shareholders' equity:
|
|
|
|
|
|
|
||
Preferred stock - $1 par value; 2,000,000 shares authorized; None issued and outstanding as of September 30,2018 and December 31,2017
|
|
—
|
|
|
—
|
|
||
Common stock - $1 par value; 40,000,000 shares authorized; 12,750,272 and 11,152,561 shares issued and outstanding in 2018 and 2017, respectively
|
|
12,750,272
|
|
|
11,152,561
|
|
||
Additional paid-in capital
|
|
208,998,738
|
|
|
174,008,753
|
|
||
Retained earnings
|
|
33,558,861
|
|
|
21,888,575
|
|
||
Accumulated other comprehensive loss
|
|
(3,666,008
|
)
|
|
(1,198,049
|
)
|
||
Total shareholders' equity
|
|
251,641,863
|
|
|
205,851,840
|
|
||
|
|
|
|
|
||||
Total liabilities and shareholders' equity
|
|
$
|
2,050,946,047
|
|
|
$
|
1,720,770,682
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
INTEREST INCOME
|
|
|
|
|
|
|
|
|
|
|
||||||
Loans, including fees
|
|
$
|
21,571,378
|
|
|
$
|
11,491,016
|
|
|
$
|
61,451,480
|
|
|
$
|
32,448,666
|
|
Securities and interest-bearing deposits at other financial institutions
|
|
1,326,310
|
|
|
739,905
|
|
|
3,573,243
|
|
|
2,092,948
|
|
||||
Federal funds sold and other earning assets
|
|
170,019
|
|
|
86,267
|
|
|
414,423
|
|
|
237,213
|
|
||||
Total interest income
|
|
23,067,707
|
|
|
12,317,188
|
|
|
65,439,146
|
|
|
34,778,827
|
|
||||
INTEREST EXPENSE
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposits
|
|
3,968,613
|
|
|
1,373,236
|
|
|
9,607,966
|
|
|
3,712,326
|
|
||||
Securities sold under agreements to repurchase
|
|
11,697
|
|
|
15,054
|
|
|
35,106
|
|
|
46,593
|
|
||||
Subordinated debt
|
|
18,750
|
|
|
—
|
|
|
18,750
|
|
|
—
|
|
||||
Federal Home Loan Bank advances and other borrowings
|
|
209,144
|
|
|
4,769
|
|
|
568,478
|
|
|
31,925
|
|
||||
Total interest expense
|
|
4,208,204
|
|
|
1,393,059
|
|
|
10,230,300
|
|
|
3,790,844
|
|
||||
Net interest income before provision for loan losses
|
|
18,859,503
|
|
|
10,924,129
|
|
|
55,208,846
|
|
|
30,987,983
|
|
||||
Provision for loan losses
|
|
301,676
|
|
|
30,000
|
|
|
1,607,074
|
|
|
340,482
|
|
||||
Net interest income after provision for loan losses
|
|
18,557,827
|
|
|
10,894,129
|
|
|
53,601,772
|
|
|
30,647,501
|
|
||||
NONINTEREST INCOME
|
|
|
|
|
|
|
|
|
|
|
||||||
Customer service fees
|
|
623,160
|
|
|
294,315
|
|
|
1,753,379
|
|
|
849,614
|
|
||||
Gain (loss) on sale of securities, net
|
|
—
|
|
|
143,508
|
|
|
(1,200
|
)
|
|
143,508
|
|
||||
Gain on sale of loans and other assets
|
|
493,099
|
|
|
224,494
|
|
|
1,140,027
|
|
|
910,250
|
|
||||
Interchange and debit card transaction fees
|
|
144,167
|
|
|
232,607
|
|
|
410,921
|
|
|
648,329
|
|
||||
Other noninterest income
|
|
570,155
|
|
|
352,014
|
|
|
1,600,809
|
|
|
894,689
|
|
||||
Total noninterest income
|
|
1,830,581
|
|
|
1,246,938
|
|
|
4,903,936
|
|
|
3,446,390
|
|
||||
NONINTEREST EXPENSES
|
|
|
|
|
|
|
|
|
|
|
||||||
Salaries and employee benefits
|
|
7,933,610
|
|
|
5,035,443
|
|
|
22,758,511
|
|
|
14,471,602
|
|
||||
Net occupancy and equipment expense
|
|
1,638,455
|
|
|
1,113,542
|
|
|
4,693,555
|
|
|
3,054,594
|
|
||||
Depository insurance
|
|
158,200
|
|
|
101,665
|
|
|
577,412
|
|
|
315,951
|
|
||||
Sale of foreclosed assets and related expense, net
|
|
79,243
|
|
|
47,178
|
|
|
508,303
|
|
|
72,763
|
|
||||
Advertising
|
|
227,778
|
|
|
176,998
|
|
|
626,887
|
|
|
470,657
|
|
||||
Data processing
|
|
407,192
|
|
|
483,411
|
|
|
1,533,948
|
|
|
1,291,969
|
|
||||
Professional services
|
|
922,428
|
|
|
471,707
|
|
|
2,738,923
|
|
|
1,483,108
|
|
||||
Amortization of intangible assets
|
|
247,648
|
|
|
78,057
|
|
|
664,271
|
|
|
191,705
|
|
||||
Service contracts
|
|
507,107
|
|
|
363,114
|
|
|
1,477,488
|
|
|
971,648
|
|
||||
Merger expenses
|
|
837,614
|
|
|
303,422
|
|
|
2,458,331
|
|
|
723,415
|
|
||||
Other operating expenses
|
|
1,800,077
|
|
|
1,399,916
|
|
|
5,257,535
|
|
|
3,516,179
|
|
||||
Total noninterest expenses
|
|
14,759,352
|
|
|
9,574,453
|
|
|
43,295,164
|
|
|
26,563,591
|
|
||||
Income before income tax expense
|
|
5,629,056
|
|
|
2,566,614
|
|
|
15,210,544
|
|
|
7,530,300
|
|
||||
Income tax expense
|
|
1,305,096
|
|
|
881,745
|
|
|
3,540,258
|
|
|
2,553,293
|
|
||||
Net income
|
|
4,323,960
|
|
|
1,684,869
|
|
|
11,670,286
|
|
|
4,977,007
|
|
||||
Preferred stock dividends
|
|
—
|
|
|
—
|
|
|
—
|
|
|
195,000
|
|
||||
Net income available to common shareholders
|
|
$
|
4,323,960
|
|
|
$
|
1,684,869
|
|
|
$
|
11,670,286
|
|
|
$
|
4,782,007
|
|
EARNINGS PER COMMON SHARE
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic
|
|
$
|
0.34
|
|
|
$
|
0.20
|
|
|
$
|
0.97
|
|
|
$
|
0.60
|
|
Diluted
|
|
0.34
|
|
|
0.20
|
|
|
0.96
|
|
|
0.59
|
|
||||
Weighted average common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic
|
|
12,718,861
|
|
|
8,234,783
|
|
|
12,049,151
|
|
|
7,994,661
|
|
||||
Diluted
|
|
12,817,556
|
|
|
8,320,774
|
|
|
12,143,838
|
|
|
8,073,846
|
|
|
|
Three Months Ended
September 30, |
||||||
|
|
2018
|
|
2017
|
||||
Net income available to common shareholders
|
|
$
|
4,323,960
|
|
|
$
|
1,684,869
|
|
Other comprehensive loss, net of tax:
|
|
|
|
|
|
|
||
Unrealized holding (losses) on securities arising during the period, net of tax (benefit) of $(206,565) and $(23,286) in 2018 and 2017, respectively
|
|
(700,241
|
)
|
|
(37,312
|
)
|
||
Reclassification adjustment for gains included in net income, net of tax expense of $54,533 in 2017
|
|
—
|
|
|
(88,975
|
)
|
||
Total other comprehensive loss
|
|
(700,241
|
)
|
|
(126,287
|
)
|
||
Comprehensive income
|
|
$
|
3,623,719
|
|
|
$
|
1,558,582
|
|
|
|
Nine Months Ended
September 30, |
||||||
|
|
2018
|
|
2017
|
||||
Net income available to common shareholders
|
|
$
|
11,670,286
|
|
|
$
|
4,977,007
|
|
Other comprehensive income, net of tax:
|
|
|
|
|
|
|
||
Unrealized holding (losses) gains arising during the period, net of tax (benefit) expense of $(786,997) and $444,467 in 2018 and 2017, respectively
|
|
(2,468,879
|
)
|
|
717,412
|
|
||
Reclassification adjustment for losses (gains) included in net income, net of (benefit) tax of $(280) and $54,533 in 2018 and 2017, respectively
|
|
920
|
|
|
(88,975
|
)
|
||
Total other comprehensive (loss) income
|
|
(2,467,959
|
)
|
|
628,437
|
|
||
Comprehensive income
|
|
$
|
9,202,327
|
|
|
$
|
5,605,444
|
|
|
|
Common
Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Total
Shareholders'
Equity
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
BALANCE, June 30, 2018
|
|
$
|
12,704,581
|
|
|
$
|
208,512,862
|
|
|
$
|
29,234,901
|
|
|
$
|
(2,965,767
|
)
|
|
$
|
247,486,577
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
|
—
|
|
|
—
|
|
|
4,323,960
|
|
|
—
|
|
|
4,323,960
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(700,241
|
)
|
|
(700,241
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Issuance of stock grants and restricted stock
|
|
5,553
|
|
|
(5,553
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Exercise of stock options
|
|
40,138
|
|
|
408,189
|
|
|
—
|
|
|
—
|
|
|
448,327
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Stock option compensation expense
|
|
|
|
83,240
|
|
|
|
|
|
|
83,240
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
BALANCE, September 30, 2018
|
|
$
|
12,750,272
|
|
|
$
|
208,998,738
|
|
|
$
|
33,558,861
|
|
|
$
|
(3,666,008
|
)
|
|
$
|
251,641,863
|
|
|
|
Common
Stock |
|
Additional
Paid-in Capital |
|
Retained
Earnings |
|
Accumulated
Other Comprehensive Loss |
|
Total
Shareholders' Equity |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
BALANCE, June 30, 2017
|
|
$
|
8,219,261
|
|
|
$
|
106,793,832
|
|
|
$
|
19,968,434
|
|
|
$
|
(247,516
|
)
|
|
$
|
134,734,011
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
|
—
|
|
|
—
|
|
|
1,684,869
|
|
|
—
|
|
|
1,684,869
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(126,287
|
)
|
|
(126,287
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Exercise of stock options
|
|
23,995
|
|
|
224,750
|
|
|
—
|
|
|
—
|
|
|
248,745
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Stock compensation expense
|
|
—
|
|
|
46,250
|
|
|
—
|
|
|
—
|
|
|
46,250
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
BALANCE, September 30, 2017
|
|
$
|
8,243,256
|
|
|
$
|
107,064,832
|
|
|
$
|
21,653,303
|
|
|
$
|
(373,803
|
)
|
|
$
|
136,587,588
|
|
|
|
Common
Stock |
|
Additional
Paid-in Capital |
|
Retained
Earnings |
|
Accumulated
Other Comprehensive Loss |
|
Total
Shareholders' Equity |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
BALANCE, December 31, 2017
|
|
$
|
11,152,561
|
|
|
$
|
174,008,753
|
|
|
$
|
21,888,575
|
|
|
$
|
(1,198,049
|
)
|
|
$
|
205,851,840
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
|
—
|
|
|
—
|
|
|
11,670,286
|
|
|
—
|
|
|
11,670,286
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,467,959
|
)
|
|
(2,467,959
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Shares issued to shareholders of TN Bancshares, Inc., net
|
|
1,458,981
|
|
|
33,272,941
|
|
|
—
|
|
|
—
|
|
|
34,731,922
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Issuance of stock grants and restricted stock
|
|
5,947
|
|
|
3,115
|
|
|
—
|
|
|
—
|
|
|
9,062
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Exercise of stock options
|
|
132,783
|
|
|
1,386,461
|
|
|
—
|
|
|
—
|
|
|
1,519,244
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Stock compensation expense
|
|
—
|
|
|
327,468
|
|
|
—
|
|
|
—
|
|
|
327,468
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
BALANCE, September 30, 2018
|
|
$
|
12,750,272
|
|
|
$
|
208,998,738
|
|
|
$
|
33,558,861
|
|
|
$
|
(3,666,008
|
)
|
|
$
|
251,641,863
|
|
|
|
Preferred Stock
|
|
Common
Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total
Shareholders'
Equity
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
BALANCE, December 31, 2016
|
|
$
|
12,000
|
|
|
$
|
5,896,033
|
|
|
$
|
83,463,051
|
|
|
$
|
16,871,296
|
|
|
$
|
(1,002,240
|
)
|
|
$
|
105,240,140
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,977,007
|
|
|
—
|
|
|
4,977,007
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
628,437
|
|
|
628,437
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Issuance of common stock
|
|
—
|
|
|
1,840,000
|
|
|
31,094,676
|
|
|
—
|
|
|
—
|
|
|
32,934,676
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Issuance of stock grants
|
|
—
|
|
|
1,511
|
|
|
30,280
|
|
|
—
|
|
|
—
|
|
|
31,791
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Exercise of stock options
|
|
—
|
|
|
505,712
|
|
|
4,368,045
|
|
|
—
|
|
|
—
|
|
|
4,873,757
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash dividends on preferred stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(195,000
|
)
|
|
—
|
|
|
(195,000
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Redemption of preferred stock
|
|
(12,000
|
)
|
|
—
|
|
|
(11,988,000
|
)
|
|
—
|
|
|
—
|
|
|
(12,000,000
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Stock option compensation expense
|
|
—
|
|
|
—
|
|
|
96,780
|
|
|
—
|
|
|
—
|
|
|
96,780
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
BALANCE, September 30, 2017
|
|
—
|
|
|
$
|
8,243,256
|
|
|
$
|
107,064,832
|
|
|
$
|
21,653,303
|
|
|
$
|
(373,803
|
)
|
|
$
|
136,587,588
|
|
|
|
Nine Months Ended September 30,
|
||||||
|
|
2018
|
|
2017
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
||||
Net income
|
|
$
|
11,670,286
|
|
|
$
|
4,977,007
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
||||
Depreciation and amortization
|
|
2,943,067
|
|
|
1,776,958
|
|
||
Provision for loan losses
|
|
1,607,074
|
|
|
340,482
|
|
||
Stock option compensation expense
|
|
327,468
|
|
|
96,780
|
|
||
Loss (gains) from redemption and sale of securities
|
|
1,200
|
|
|
(143,508
|
)
|
||
Accretion on purchased credit impaired loans
|
|
(3,776,000
|
)
|
|
(2,731,000
|
)
|
||
Net gains from sale of loans and other assets
|
|
(1,140,027
|
)
|
|
(910,250
|
)
|
||
Net losses from sale of foreclosed assets
|
|
434,299
|
|
|
42,314
|
|
||
Changes in other assets and liabilities:
|
|
|
|
|
||||
Accrued interest receivable
|
|
(677,883
|
)
|
|
(38,985
|
)
|
||
Accrued interest payable
|
|
227,650
|
|
|
38,172
|
|
||
Other assets and liabilities
|
|
5,026,836
|
|
|
2,427,408
|
|
||
Net cash provided by operating activities
|
|
16,643,970
|
|
|
5,875,378
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES, net of acquisitions
|
|
|
|
|
||||
Proceeds from sales, maturities, and paydowns of securities available-for-sale
|
|
41,545,210
|
|
|
27,070,170
|
|
||
Purchase of securities
|
|
(41,803,759
|
)
|
|
(12,507,860
|
)
|
||
Purchase of bank owned life insurance
|
|
—
|
|
|
(10,000,000
|
)
|
||
Purchase of restricted investments
|
|
(3,840,550
|
)
|
|
(452,750
|
)
|
||
Net cash and cash equivalents received (paid) in business combination
|
|
5,653,304
|
|
|
(1,049,878
|
)
|
||
Loan originations and principal collections, net
|
|
(79,703,914
|
)
|
|
(31,226,948
|
)
|
||
Purchase of bank premises and equipment
|
|
(1,885,093
|
)
|
|
(1,693,323
|
)
|
||
Proceeds from sale of foreclosed assets
|
|
3,446,448
|
|
|
41,636
|
|
||
Net cash used in investing activities
|
|
(76,588,354
|
)
|
|
(29,818,953
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES, net of acquisitions
|
|
|
|
|
||||
Net increase in deposits
|
|
65,879,196
|
|
|
26,234,084
|
|
||
Net decrease in securities sold under agreements to repurchase
|
|
(7,268,238
|
)
|
|
(80,212
|
)
|
||
Issuance of common stock
|
|
1,528,306
|
|
|
37,840,224
|
|
||
Redemption of preferred stock
|
|
—
|
|
|
(12,000,000
|
)
|
||
Payment of dividends on preferred stock
|
|
—
|
|
|
(195,000
|
)
|
||
Net proceeds from subordinated debt
|
|
39,158,444
|
|
|
—
|
|
||
Proceeds from Federal Home Loan Bank advances and other borrowings
|
|
160,700,028
|
|
|
95,804,205
|
|
||
Repayment of Federal Home Loan Bank advances and other borrowings
|
|
(182,976,028
|
)
|
|
(108,309,595
|
)
|
||
Net cash provided by financing activities
|
|
77,021,708
|
|
|
39,293,706
|
|
||
NET INCREASE IN CASH AND CASH EQUIVALENTS
|
|
17,077,324
|
|
|
15,350,131
|
|
||
CASH AND CASH EQUIVALENTS, beginning of year
|
|
113,026,884
|
|
|
68,748,308
|
|
||
CASH AND CASH EQUIVALENTS, end of period
|
|
$
|
130,104,208
|
|
|
$
|
84,098,439
|
|
|
|
|
|
|
||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
|
|
|
|
|
||||
Cash paid during the period for interest
|
|
$
|
10,002,650
|
|
|
$
|
3,742,255
|
|
Cash paid during the period for income taxes
|
|
726,000
|
|
|
2,795,584
|
|
||
|
|
|
|
|
||||
NONCASH INVESTING AND FINANCING ACTIVITIES
|
|
|
|
|
||||
Change in unrealized losses on securities available for sale
|
|
$
|
3,254,676
|
|
|
$
|
(1,018,370
|
)
|
Acquisition of real estate through foreclosure
|
|
3,150,763
|
|
|
585,267
|
|
||
Transfer from Bank premises to foreclosed assets
|
|
1,289,102
|
|
|
—
|
|
||
Financed sales of foreclosed assets
|
|
257,416
|
|
|
—
|
|
||
Change in goodwill due to acquisition
|
|
15,790,958
|
|
|
—
|
|
Allocation of Purchase Price (in thousands)
|
|
||
Total consideration in cash
|
$
|
1,183
|
|
Fair value of assets acquired and liabilities assumed:
|
|
|
|
Cash and cash equivalents
|
133
|
|
|
Loans
|
24,073
|
|
|
Premises and equipment
|
2,839
|
|
|
Core deposit intangible
|
310
|
|
|
Prepaid and other assets
|
77
|
|
|
Deposits
|
(26,888
|
)
|
|
Payables and other liabilities
|
(21
|
)
|
|
Total fair value of net assets acquired
|
523
|
|
|
Goodwill
|
$
|
660
|
|
Calculation of Purchase Price
|
|
||
Shares of SMBK common stock issued to Capstone shareholders as of November 1, 2017
|
2,908,094
|
|
|
Market price of SMBK common stock on November 1, 2017
|
$
|
23.49
|
|
Estimated fair value of SMBK common stock issued (in thousands)
|
68,311
|
|
|
Estimated fair value of Capstone stock options (in thousands)
|
1,585
|
|
|
Cash consideration paid (in thousands)
|
15,826
|
|
|
Total consideration (in thousands)
|
$
|
85,722
|
|
Allocation of Purchase Price (in thousands)
|
|
||
Total consideration above
|
$
|
85,722
|
|
Fair value of assets acquired and liabilities assumed:
|
|
|
|
Cash and cash equivalents
|
16,810
|
|
|
Investment securities available-for-sale
|
51,638
|
|
|
Restricted investments
|
1,049
|
|
|
Loans
|
413,012
|
|
|
Premises and equipment
|
8,668
|
|
|
Bank owned life insurance
|
10,031
|
|
|
Core deposit intangible
|
5,530
|
|
|
Other real estate owned
|
410
|
|
|
Prepaid and other assets
|
6,360
|
|
|
Deposits
|
(454,154
|
)
|
|
FHLB advances and other borrowings
|
(4,887
|
)
|
|
Payables and other liabilities
|
(6,803
|
)
|
|
Total fair value of net assets acquired
|
47,664
|
|
|
Goodwill
|
$
|
38,058
|
|
Calculation of Purchase Price
|
|
||
Shares of SMBK common stock issued to TN Bancshares shareholders as of May 1, 2018
|
1,458,981
|
|
|
Market price of SMBK common stock on May 1, 2018
|
$
|
23.85
|
|
Estimated fair value of SMBK common stock issued (in thousands)
|
34,797
|
|
|
Cash consideration paid
|
5
|
|
|
Total consideration (in thousands)
|
$
|
34,802
|
|
Allocation of Purchase Price (in thousands)
|
|
||
Total consideration above
|
$
|
34,802
|
|
Fair value of assets acquired and liabilities assumed:
|
|
|
|
Cash and cash equivalents
|
5,723
|
|
|
Investment securities available-for-sale
|
24,563
|
|
|
Restricted investments
|
464
|
|
|
Loans
|
180,490
|
|
|
Premises and equipment
|
9,470
|
|
|
Core deposit intangible
|
2,290
|
|
|
Other real estate owned
|
674
|
|
|
Prepaid and other assets
|
2,207
|
|
|
Deposits
|
(202,272
|
)
|
|
FHLB advances and other borrowings
|
(4,000
|
)
|
|
Payables and other liabilities
|
(586
|
)
|
|
Total fair value of net assets acquired
|
19,023
|
|
|
Goodwill
|
$
|
15,779
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net income available to common shareholders
|
$
|
4,323,960
|
|
|
$
|
1,684,869
|
|
|
$
|
11,670,286
|
|
|
$
|
4,782,007
|
|
Weighted average common shares outstanding
|
12,718,861
|
|
|
8,234,783
|
|
|
12,049,151
|
|
|
7,994,661
|
|
||||
Effect of dilutive stock options
|
98,695
|
|
|
85,991
|
|
|
94,687
|
|
|
79,185
|
|
||||
Diluted shares
|
12,817,556
|
|
|
8,320,774
|
|
|
12,143,838
|
|
|
8,073,846
|
|
||||
Basic earnings per common share
|
$
|
0.34
|
|
|
$
|
0.20
|
|
|
$
|
0.97
|
|
|
$
|
0.60
|
|
Diluted earnings per common share
|
$
|
0.34
|
|
|
$
|
0.20
|
|
|
$
|
0.96
|
|
|
$
|
0.59
|
|
|
|
September 30, 2018
|
||||||||||||||
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
U.S. Government-sponsored enterprises (GSEs)
|
|
$
|
29,127
|
|
|
$
|
—
|
|
|
$
|
(1,143
|
)
|
|
$
|
27,984
|
|
Municipal securities
|
|
40,438
|
|
|
4
|
|
|
(829
|
)
|
|
39,613
|
|
||||
Other debt securities
|
|
976
|
|
|
—
|
|
|
(52
|
)
|
|
924
|
|
||||
Mortgage-backed securities (GSEs)
|
|
107,374
|
|
|
168
|
|
|
(3,024
|
)
|
|
104,518
|
|
||||
|
|
$
|
177,915
|
|
|
$
|
172
|
|
|
$
|
(5,048
|
)
|
|
$
|
173,039
|
|
|
|
December 31, 2017
|
||||||||||||||
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
U.S. Government-sponsored enterprises (GSEs)
|
|
$
|
26,207
|
|
|
$
|
1
|
|
|
$
|
(432
|
)
|
|
$
|
25,776
|
|
Municipal securities
|
|
9,122
|
|
|
28
|
|
|
(147
|
)
|
|
9,003
|
|
||||
Other debt securities
|
|
974
|
|
|
—
|
|
|
(24
|
)
|
|
950
|
|
||||
Mortgage-backed securities (GSEs)
|
|
117,263
|
|
|
136
|
|
|
(1,184
|
)
|
|
116,215
|
|
||||
|
|
$
|
153,566
|
|
|
$
|
165
|
|
|
$
|
(1,787
|
)
|
|
$
|
151,944
|
|
|
|
Amortized
Cost
|
|
Fair
Value
|
||||
Due in one year or less
|
|
$
|
—
|
|
|
$
|
—
|
|
Due from one year to five years
|
|
21,555
|
|
|
20,879
|
|
||
Due from five years to ten years
|
|
14,608
|
|
|
13,817
|
|
||
Due after ten years
|
|
34,378
|
|
|
33,825
|
|
||
|
|
70,541
|
|
|
68,521
|
|
||
Mortgage-backed securities
|
|
107,374
|
|
|
104,518
|
|
||
|
|
$
|
177,915
|
|
|
$
|
173,039
|
|
|
|
As of September 30, 2018
|
||||||||||||||||||||||
|
|
Less than 12 Months
|
|
12 Months or Greater
|
|
Total
|
||||||||||||||||||
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
||||||||||||
U.S. Government- sponsored enterprises (GSEs)
|
|
$
|
14,425
|
|
|
$
|
(575
|
)
|
|
$
|
13,559
|
|
|
$
|
(568
|
)
|
|
$
|
27,984
|
|
|
$
|
(1,143
|
)
|
Municipal securities
|
|
31,075
|
|
|
(648
|
)
|
|
2,559
|
|
|
(181
|
)
|
|
33,634
|
|
|
(829
|
)
|
||||||
Other debt securities
|
|
—
|
|
|
—
|
|
|
924
|
|
|
(52
|
)
|
|
924
|
|
|
(52
|
)
|
||||||
Mortgage-backed securities (GSEs)
|
|
49,185
|
|
|
(1,713
|
)
|
|
32,074
|
|
|
(1,311
|
)
|
|
81,259
|
|
|
(3,024
|
)
|
||||||
|
|
$
|
94,685
|
|
|
$
|
(2,936
|
)
|
|
$
|
49,116
|
|
|
$
|
(2,112
|
)
|
|
$
|
143,801
|
|
|
$
|
(5,048
|
)
|
|
|
As of December 31, 2017
|
||||||||||||||||||||||
|
|
Less than 12 Months
|
|
12 Months or Greater
|
|
Total
|
||||||||||||||||||
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
||||||||||||
U.S. Government- sponsored enterprises (GSEs)
|
|
$
|
1,358
|
|
|
$
|
(1
|
)
|
|
$
|
13,420
|
|
|
$
|
(431
|
)
|
|
$
|
14,778
|
|
|
$
|
(432
|
)
|
Municipal securities
|
|
3,418
|
|
|
(43
|
)
|
|
2,112
|
|
|
(104
|
)
|
|
5,530
|
|
|
(147
|
)
|
||||||
Other debt securities
|
|
950
|
|
|
(24
|
)
|
|
—
|
|
|
—
|
|
|
950
|
|
|
(24
|
)
|
||||||
Mortgage-backed securities (GSEs)
|
|
61,332
|
|
|
(407
|
)
|
|
35,048
|
|
|
(777
|
)
|
|
96,380
|
|
|
(1,184
|
)
|
||||||
|
|
$
|
67,058
|
|
|
$
|
(475
|
)
|
|
$
|
50,580
|
|
|
$
|
(1,312
|
)
|
|
$
|
117,638
|
|
|
$
|
(1,787
|
)
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
|
|
PCI Loans
1
|
|
All Other
Loans
|
|
Total
|
|
PCI Loans
1
|
|
All Other
Loans
|
|
Total
|
||||||||||||
Commercial real estate
|
|
$
|
17,632
|
|
|
$
|
748,454
|
|
|
$
|
766,086
|
|
|
$
|
17,903
|
|
|
$
|
625,085
|
|
|
$
|
642,988
|
|
Consumer real estate
|
|
5,799
|
|
|
344,623
|
|
|
350,422
|
|
|
7,450
|
|
|
286,007
|
|
|
293,457
|
|
||||||
Construction and land development
|
|
4,372
|
|
|
161,534
|
|
|
165,906
|
|
|
5,120
|
|
|
130,289
|
|
|
135,409
|
|
||||||
Commercial and industrial
|
|
762
|
|
|
289,022
|
|
|
289,784
|
|
|
858
|
|
|
237,229
|
|
|
238,087
|
|
||||||
Consumer and other
|
|
583
|
|
|
12,413
|
|
|
12,996
|
|
|
1,463
|
|
|
11,854
|
|
|
13,317
|
|
||||||
Total loans
|
|
29,148
|
|
|
1,556,046
|
|
|
1,585,194
|
|
|
32,794
|
|
|
1,290,464
|
|
|
1,323,258
|
|
||||||
Less: Allowance for loan losses
|
|
(19
|
)
|
|
(7,137
|
)
|
|
(7,156
|
)
|
|
(16
|
)
|
|
(5,844
|
)
|
|
(5,860
|
)
|
||||||
Loans, net
|
|
$
|
29,129
|
|
|
$
|
1,548,909
|
|
|
$
|
1,578,038
|
|
|
$
|
32,778
|
|
|
$
|
1,284,620
|
|
|
$
|
1,317,398
|
|
|
|
September 30, 2018
|
||||||||||||||||||||||
|
|
Commercial
Real Estate
|
|
Consumer
Real Estate
|
|
Construction
and Land
Development
|
|
Commercial
and
Industrial
|
|
Consumer
and Other
|
|
Total
|
||||||||||||
Performing loans
|
|
$
|
747,256
|
|
|
$
|
343,265
|
|
|
$
|
160,987
|
|
|
$
|
288,603
|
|
|
$
|
12,345
|
|
|
$
|
1,552,456
|
|
Impaired loans
|
|
1,198
|
|
|
1,358
|
|
|
547
|
|
|
419
|
|
|
68
|
|
|
3,590
|
|
||||||
|
|
748,454
|
|
|
344,623
|
|
|
161,534
|
|
|
289,022
|
|
|
12,413
|
|
|
1,556,046
|
|
||||||
PCI loans
|
|
17,632
|
|
|
5,799
|
|
|
4,372
|
|
|
762
|
|
|
583
|
|
|
29,148
|
|
||||||
Total
|
|
$
|
766,086
|
|
|
$
|
350,422
|
|
|
$
|
165,906
|
|
|
$
|
289,784
|
|
|
$
|
12,996
|
|
|
$
|
1,585,194
|
|
|
|
December 31, 2017
|
||||||||||||||||||||||
|
|
Commercial
Real Estate
|
|
Consumer
Real Estate
|
|
Construction
and Land
Development
|
|
Commercial
and
Industrial
|
|
Consumer
and Other
|
|
Total
|
||||||||||||
Performing loans
|
|
$
|
624,638
|
|
|
$
|
284,585
|
|
|
$
|
129,742
|
|
|
$
|
237,016
|
|
|
$
|
11,842
|
|
|
$
|
1,287,823
|
|
Impaired loans
|
|
447
|
|
|
1,422
|
|
|
547
|
|
|
213
|
|
|
12
|
|
|
2,641
|
|
||||||
|
|
625,085
|
|
|
286,007
|
|
|
130,289
|
|
|
237,229
|
|
|
11,854
|
|
|
1,290,464
|
|
||||||
PCI loans
|
|
17,903
|
|
|
7,450
|
|
|
5,120
|
|
|
858
|
|
|
1,463
|
|
|
32,794
|
|
||||||
Total loans
|
|
$
|
642,988
|
|
|
$
|
293,457
|
|
|
$
|
135,409
|
|
|
$
|
238,087
|
|
|
$
|
13,317
|
|
|
$
|
1,323,258
|
|
|
|
September 30, 2018
|
||||||||||||||||||||||
|
|
Commercial
Real Estate
|
|
Consumer
Real Estate
|
|
Construction
and Land
Development
|
|
Commercial
and
Industrial
|
|
Consumer
and
Other
|
|
Total
|
||||||||||||
Performing loans
|
|
$
|
3,226
|
|
|
$
|
1,511
|
|
|
$
|
709
|
|
|
$
|
1,220
|
|
|
$
|
205
|
|
|
$
|
6,871
|
|
PCI loans
|
|
19
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19
|
|
||||||
Impaired loans
|
|
—
|
|
|
87
|
|
|
—
|
|
|
142
|
|
|
37
|
|
|
266
|
|
||||||
Total
|
|
$
|
3,245
|
|
|
$
|
1,598
|
|
|
$
|
709
|
|
|
$
|
1,362
|
|
|
$
|
242
|
|
|
$
|
7,156
|
|
|
|
December 31, 2017
|
||||||||||||||||||||||
|
|
Commercial
Real Estate
|
|
Consumer
Real Estate
|
|
Construction
and Land
Development
|
|
Commercial
and
Industrial
|
|
Consumer
and
Other
|
|
Total
|
||||||||||||
Performing loans
|
|
$
|
2,444
|
|
|
$
|
1,340
|
|
|
$
|
521
|
|
|
$
|
890
|
|
|
$
|
204
|
|
|
$
|
5,399
|
|
PCI loans
|
|
16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
||||||
Impaired loans
|
|
5
|
|
|
256
|
|
|
—
|
|
|
172
|
|
|
12
|
|
|
445
|
|
||||||
Total
|
|
$
|
2,465
|
|
|
$
|
1,596
|
|
|
$
|
521
|
|
|
$
|
1,062
|
|
|
$
|
216
|
|
|
$
|
5,860
|
|
|
|
September 30, 2018
|
||||||||||||||||||||||
|
|
Commercial
Real Estate |
|
Consumer
Real Estate |
|
Construction
and Land Development |
|
Commercial
and Industrial |
|
Consumer
and Other |
|
Total
|
||||||||||||
Beginning balance
|
|
$
|
3,135
|
|
|
$
|
1,528
|
|
|
$
|
744
|
|
|
$
|
1,367
|
|
|
$
|
300
|
|
|
$
|
7,074
|
|
Loans charged off
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(100
|
)
|
|
(156
|
)
|
|
(258
|
)
|
||||||
Recoveries of loans charged off
|
|
—
|
|
|
5
|
|
|
—
|
|
|
9
|
|
|
22
|
|
|
36
|
|
||||||
Provision (reallocation) charged to expense
|
|
110
|
|
|
67
|
|
|
(35
|
)
|
|
86
|
|
|
76
|
|
|
304
|
|
||||||
Ending balance
|
|
$
|
3,245
|
|
|
$
|
1,598
|
|
|
$
|
709
|
|
|
$
|
1,362
|
|
|
$
|
242
|
|
|
$
|
7,156
|
|
|
|
September 30, 2017
|
||||||||||||||||||||||
|
|
Commercial
Real Estate |
|
Consumer
Real Estate |
|
Construction
and Land Development |
|
Commercial
and Industrial |
|
Consumer
and Other |
|
Total
|
||||||||||||
Beginning balance
|
|
$
|
2,489
|
|
|
$
|
1,653
|
|
|
$
|
609
|
|
|
$
|
644
|
|
|
$
|
103
|
|
|
$
|
5,498
|
|
Loans charged off
|
|
—
|
|
|
(104
|
)
|
|
—
|
|
|
(18
|
)
|
|
(66
|
)
|
|
(188
|
)
|
||||||
Recoveries of charge-offs
|
|
2
|
|
|
11
|
|
|
2
|
|
|
23
|
|
|
15
|
|
|
53
|
|
||||||
Provision (reallocation) charged to expense
|
|
52
|
|
|
(145
|
)
|
|
(46
|
)
|
|
96
|
|
|
73
|
|
|
30
|
|
||||||
Ending balance
|
|
$
|
2,543
|
|
|
$
|
1,415
|
|
|
$
|
565
|
|
|
$
|
745
|
|
|
$
|
125
|
|
|
$
|
5,393
|
|
|
|
September 30, 2018
|
||||||||||||||||||||||
|
|
Commercial
Real Estate
|
|
Consumer
Real
Estate
|
|
Construction
and Land
Development
|
|
Commercial
and
Industrial
|
|
Consumer
and Other
|
|
Total
|
||||||||||||
Beginning balance
|
|
$
|
2,465
|
|
|
$
|
1,596
|
|
|
$
|
521
|
|
|
$
|
1,062
|
|
|
$
|
216
|
|
|
$
|
5,860
|
|
Loans charged off
|
|
(38
|
)
|
|
(27
|
)
|
|
—
|
|
|
(178
|
)
|
|
(257
|
)
|
|
(500
|
)
|
||||||
Recoveries of loans charged off
|
|
—
|
|
|
55
|
|
|
7
|
|
|
65
|
|
|
62
|
|
|
189
|
|
||||||
Provision (reallocation) charged to expense
|
|
818
|
|
|
(26
|
)
|
|
181
|
|
|
413
|
|
|
221
|
|
|
1,607
|
|
||||||
Ending balance
|
|
$
|
3,245
|
|
|
$
|
1,598
|
|
|
$
|
709
|
|
|
$
|
1,362
|
|
|
$
|
242
|
|
|
$
|
7,156
|
|
|
|
December 31, 2017
|
||||||||||||||||||||||
|
|
Commercial
Real Estate
|
|
Consumer
Real
Estate
|
|
Construction
and Land
Development
|
|
Commercial
and
Industrial
|
|
Consumer
and Other
|
|
Total
|
||||||||||||
Beginning balance
|
|
$
|
2,369
|
|
|
$
|
1,382
|
|
|
$
|
717
|
|
|
$
|
520
|
|
|
$
|
117
|
|
|
$
|
5,105
|
|
Loans charged off
|
|
—
|
|
|
(111
|
)
|
|
—
|
|
|
(24
|
)
|
|
(141
|
)
|
|
(276
|
)
|
||||||
Recoveries of charge-offs
|
|
8
|
|
|
99
|
|
|
13
|
|
|
67
|
|
|
61
|
|
|
248
|
|
||||||
Provision (reallocation) charged to expense
|
|
88
|
|
|
226
|
|
|
(209
|
)
|
|
499
|
|
|
179
|
|
|
783
|
|
||||||
Ending balance
|
|
$
|
2,465
|
|
|
$
|
1,596
|
|
|
$
|
521
|
|
|
$
|
1,062
|
|
|
$
|
216
|
|
|
$
|
5,860
|
|
|
|
September 30, 2018
|
||||||||||||||||||||||
Non PCI Loans
|
|
Commercial
Real Estate
|
|
Consumer
Real Estate
|
|
Construction
and Land
Development
|
|
Commercial
and
Industrial
|
|
Consumer
and Other
|
|
Total
|
||||||||||||
Pass
|
|
$
|
743,995
|
|
|
$
|
339,665
|
|
|
$
|
160,767
|
|
|
$
|
287,585
|
|
|
$
|
12,199
|
|
|
$
|
1,544,211
|
|
Watch
|
|
3,833
|
|
|
3,082
|
|
|
61
|
|
|
409
|
|
|
119
|
|
|
7,504
|
|
||||||
Special mention
|
|
—
|
|
|
546
|
|
|
159
|
|
|
632
|
|
|
—
|
|
|
1,337
|
|
||||||
Substandard
|
|
626
|
|
|
1,330
|
|
|
547
|
|
|
387
|
|
|
95
|
|
|
2,985
|
|
||||||
Doubtful
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
9
|
|
||||||
Total
|
|
$
|
748,454
|
|
|
$
|
344,623
|
|
|
$
|
161,534
|
|
|
$
|
289,022
|
|
|
$
|
12,413
|
|
|
$
|
1,556,046
|
|
PCI Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Pass
|
|
$
|
13,897
|
|
|
$
|
3,464
|
|
|
$
|
3,725
|
|
|
$
|
214
|
|
|
$
|
478
|
|
|
$
|
21,778
|
|
Watch
|
|
1,484
|
|
|
823
|
|
|
647
|
|
|
—
|
|
|
18
|
|
|
2,972
|
|
||||||
Special mention
|
|
1,379
|
|
|
241
|
|
|
—
|
|
|
119
|
|
|
13
|
|
|
1,752
|
|
||||||
Substandard
|
|
872
|
|
|
1,271
|
|
|
—
|
|
|
429
|
|
|
74
|
|
|
2,646
|
|
||||||
Doubtful
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
|
$
|
17,632
|
|
|
$
|
5,799
|
|
|
$
|
4,372
|
|
|
$
|
762
|
|
|
$
|
583
|
|
|
$
|
29,148
|
|
Total loans
|
|
$
|
766,086
|
|
|
$
|
350,422
|
|
|
$
|
165,906
|
|
|
$
|
289,784
|
|
|
$
|
12,996
|
|
|
$
|
1,585,194
|
|
|
|
December 31, 2017
|
||||||||||||||||||||||
Non PCI Loans
|
|
Commercial
Real Estate
|
|
Consumer
Real Estate
|
|
Construction
and Land
Development
|
|
Commercial
and
Industrial
|
|
Consumer
and Other
|
|
Total
|
||||||||||||
Pass
|
|
$
|
616,028
|
|
|
$
|
279,464
|
|
|
$
|
129,359
|
|
|
$
|
233,942
|
|
|
$
|
11,624
|
|
|
$
|
1,270,417
|
|
Watch
|
|
7,673
|
|
|
2,543
|
|
|
383
|
|
|
3,007
|
|
|
62
|
|
|
13,668
|
|
||||||
Special mention
|
|
1,006
|
|
|
2,627
|
|
|
—
|
|
|
64
|
|
|
155
|
|
|
3,852
|
|
||||||
Substandard
|
|
378
|
|
|
1,159
|
|
|
547
|
|
|
157
|
|
|
—
|
|
|
2,241
|
|
||||||
Doubtful
|
|
—
|
|
|
214
|
|
|
—
|
|
|
59
|
|
|
13
|
|
|
286
|
|
||||||
Total
|
|
$
|
625,085
|
|
|
$
|
286,007
|
|
|
$
|
130,289
|
|
|
$
|
237,229
|
|
|
$
|
11,854
|
|
|
$
|
1,290,464
|
|
PCI Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Pass
|
|
$
|
14,386
|
|
|
$
|
4,151
|
|
|
$
|
4,134
|
|
|
$
|
68
|
|
|
$
|
819
|
|
|
$
|
23,558
|
|
Watch
|
|
261
|
|
|
1,345
|
|
|
649
|
|
|
120
|
|
|
262
|
|
|
2,637
|
|
||||||
Special mention
|
|
—
|
|
|
456
|
|
|
—
|
|
|
58
|
|
|
24
|
|
|
538
|
|
||||||
Substandard
|
|
3,084
|
|
|
1,192
|
|
|
337
|
|
|
588
|
|
|
107
|
|
|
5,308
|
|
||||||
Doubtful
|
|
172
|
|
|
306
|
|
|
—
|
|
|
24
|
|
|
251
|
|
|
753
|
|
||||||
Total
|
|
$
|
17,903
|
|
|
$
|
7,450
|
|
|
$
|
5,120
|
|
|
$
|
858
|
|
|
$
|
1,463
|
|
|
$
|
32,794
|
|
Total loans
|
|
$
|
642,988
|
|
|
$
|
293,457
|
|
|
$
|
135,409
|
|
|
$
|
238,087
|
|
|
$
|
13,317
|
|
|
$
|
1,323,258
|
|
|
|
September 30, 2018
|
||||||||||||||||||||||||||||||
|
|
30-60 Days
Past Due and
Accruing
|
|
61-89 Days
Past Due and
Accruing
|
|
Past Due 90
Days or More
and Accruing
|
|
Nonaccrual
|
|
Total
Past Due
and NonAccrual
|
|
PCI Loans
|
|
Current
Loans
|
|
Total
Loans
|
||||||||||||||||
Commercial real estate
|
|
$
|
341
|
|
|
$
|
222
|
|
|
$
|
301
|
|
|
$
|
—
|
|
|
$
|
864
|
|
|
$
|
17,632
|
|
|
$
|
747,590
|
|
|
$
|
766,086
|
|
Consumer real estate
|
|
1,071
|
|
|
10
|
|
|
—
|
|
|
936
|
|
|
2,017
|
|
|
5,799
|
|
|
342,606
|
|
|
350,422
|
|
||||||||
Construction and land development
|
|
391
|
|
|
424
|
|
|
—
|
|
|
547
|
|
|
1,362
|
|
|
4,372
|
|
|
160,172
|
|
|
165,906
|
|
||||||||
Commercial and industrial
|
|
96
|
|
|
314
|
|
|
487
|
|
|
311
|
|
|
1,208
|
|
|
762
|
|
|
287,814
|
|
|
289,784
|
|
||||||||
Consumer and other
|
|
118
|
|
|
85
|
|
|
55
|
|
|
49
|
|
|
307
|
|
|
583
|
|
|
12,106
|
|
|
12,996
|
|
||||||||
Total
|
|
$
|
2,017
|
|
|
$
|
1,055
|
|
|
$
|
843
|
|
|
$
|
1,843
|
|
|
$
|
5,758
|
|
|
$
|
29,148
|
|
|
$
|
1,550,288
|
|
|
$
|
1,585,194
|
|
|
|
December 31, 2017
|
||||||||||||||||||||||||||||||
|
|
30-60 Days
Past Due and
Accruing
|
|
61-89 Days
Past Due and
Accruing
|
|
Past Due 90
Days or More
and Accruing
|
|
Nonaccrual
|
|
Total
Past Due
and NonAccrual
|
|
PCI
Loans
|
|
Current
Loans
|
|
Total
Loans
|
||||||||||||||||
Commercial real estate
|
|
$
|
517
|
|
|
$
|
—
|
|
|
$
|
728
|
|
|
$
|
128
|
|
|
$
|
1,373
|
|
|
$
|
17,903
|
|
|
$
|
623,712
|
|
|
$
|
642,988
|
|
Consumer real estate
|
|
769
|
|
|
194
|
|
|
33
|
|
|
991
|
|
|
1,987
|
|
|
7,450
|
|
|
284,020
|
|
|
293,457
|
|
||||||||
Construction and land development
|
|
65
|
|
|
—
|
|
|
326
|
|
|
547
|
|
|
938
|
|
|
5,120
|
|
|
129,351
|
|
|
135,409
|
|
||||||||
Commercial and industrial
|
|
86
|
|
|
200
|
|
|
131
|
|
|
85
|
|
|
502
|
|
|
858
|
|
|
236,727
|
|
|
238,087
|
|
||||||||
Consumer and other
|
|
109
|
|
|
56
|
|
|
291
|
|
|
13
|
|
|
469
|
|
|
1,463
|
|
|
11,385
|
|
|
13,317
|
|
||||||||
Total
|
|
$
|
1,546
|
|
|
$
|
450
|
|
|
$
|
1,509
|
|
|
$
|
1,764
|
|
|
$
|
5,269
|
|
|
$
|
32,794
|
|
|
$
|
1,285,195
|
|
|
$
|
1,323,258
|
|
|
|
|
|
|
|
|
|
For the nine months ended
|
||||||||||||
|
|
At September 30, 2018
|
|
September 30, 2018
|
||||||||||||||||
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
||||||||||
Impaired loans without a valuation allowance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial real estate
|
|
$
|
1,198
|
|
|
$
|
1,211
|
|
|
$
|
—
|
|
|
$
|
802
|
|
|
$
|
27
|
|
Consumer real estate
|
|
981
|
|
|
992
|
|
|
—
|
|
|
769
|
|
|
22
|
|
|||||
Construction and land development
|
|
547
|
|
|
547
|
|
|
—
|
|
|
547
|
|
|
—
|
|
|||||
Commercial and industrial
|
|
72
|
|
|
73
|
|
|
—
|
|
|
62
|
|
|
5
|
|
|||||
Consumer and other
|
|
15
|
|
|
14
|
|
|
—
|
|
|
8
|
|
|
1
|
|
|||||
|
|
2,813
|
|
|
2,837
|
|
|
—
|
|
|
2,188
|
|
|
55
|
|
|||||
Impaired loans with a valuation allowance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|||||
Consumer real estate
|
|
376
|
|
|
388
|
|
|
87
|
|
|
576
|
|
|
13
|
|
|||||
Construction and land development
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial and industrial
|
|
348
|
|
|
354
|
|
|
142
|
|
|
280
|
|
|
10
|
|
|||||
Consumer and other
|
|
53
|
|
|
57
|
|
|
37
|
|
|
68
|
|
|
3
|
|
|||||
|
|
777
|
|
|
799
|
|
|
266
|
|
|
930
|
|
|
26
|
|
|||||
PCI loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
|
30
|
|
|
127
|
|
|
19
|
|
|
11
|
|
|
3
|
|
|||||
Total impaired loans
|
|
$
|
3,620
|
|
|
$
|
3,763
|
|
|
$
|
285
|
|
|
$
|
3,129
|
|
|
$
|
84
|
|
|
|
|
|
|
|
|
|
For the year ended
|
||||||||||||
|
|
At December 31, 2017
|
|
December 31, 2017
|
||||||||||||||||
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
||||||||||
Impaired loans without a valuation allowance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial real estate
|
|
$
|
424
|
|
|
$
|
454
|
|
|
$
|
—
|
|
|
$
|
204
|
|
|
$
|
44
|
|
Consumer real estate
|
|
415
|
|
|
420
|
|
|
—
|
|
|
401
|
|
|
16
|
|
|||||
Construction and land development
|
|
547
|
|
|
547
|
|
|
—
|
|
|
628
|
|
|
—
|
|
|||||
Commercial and industrial
|
|
41
|
|
|
41
|
|
|
—
|
|
|
44
|
|
|
3
|
|
|||||
Consumer and other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
|
1,427
|
|
|
1,462
|
|
|
—
|
|
|
1,277
|
|
|
63
|
|
|||||
Impaired loans with a valuation allowance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial real estate
|
|
23
|
|
|
23
|
|
|
5
|
|
|
5
|
|
|
1
|
|
|||||
Consumer real estate
|
|
1,007
|
|
|
1,033
|
|
|
256
|
|
|
601
|
|
|
38
|
|
|||||
Construction and land development
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial and industrial
|
|
172
|
|
|
172
|
|
|
172
|
|
|
117
|
|
|
10
|
|
|||||
Consumer and other
|
|
12
|
|
|
13
|
|
|
12
|
|
|
2
|
|
|
1
|
|
|||||
|
|
1,214
|
|
|
1,241
|
|
|
445
|
|
|
725
|
|
|
50
|
|
|||||
PCI loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
|
16
|
|
|
123
|
|
|
16
|
|
|
3
|
|
|
16
|
|
|||||
Total impaired loans
|
|
$
|
2,657
|
|
|
$
|
2,826
|
|
|
$
|
461
|
|
|
$
|
2,005
|
|
|
$
|
129
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||
Commercial real estate
|
$
|
24,790
|
|
|
$
|
23,366
|
|
Consumer real estate
|
8,401
|
|
|
10,764
|
|
||
Construction and land development
|
5,473
|
|
|
6,285
|
|
||
Commercial and industrial
|
2,851
|
|
|
1,452
|
|
||
Consumer and other
|
892
|
|
|
1,710
|
|
||
Total loans
|
42,407
|
|
|
43,577
|
|
||
Less remaining purchase discount
|
(13,259
|
)
|
|
(10,783
|
)
|
||
Total loans, net of purchase discount
|
29,148
|
|
|
32,794
|
|
||
Less: Allowance for loan losses
|
(19
|
)
|
|
(16
|
)
|
||
Carrying amount, net of allowance
|
$
|
29,129
|
|
|
$
|
32,778
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Accretable yield, beginning of period
|
|
$
|
7,206
|
|
|
$
|
8,475
|
|
|
$
|
9,287
|
|
|
$
|
8,950
|
|
Additions
|
|
—
|
|
|
—
|
|
|
1,292
|
|
|
—
|
|
||||
Accretion income
|
|
(746
|
)
|
|
(1,061
|
)
|
|
(3,776
|
)
|
|
(2,731
|
)
|
||||
Reclassification to accretable
|
|
2,516
|
|
|
134
|
|
|
2,898
|
|
|
743
|
|
||||
Other changes, net
|
|
243
|
|
|
460
|
|
|
(482
|
)
|
|
1,046
|
|
||||
Accretable yield
|
|
$
|
9,219
|
|
|
$
|
8,008
|
|
|
$
|
9,219
|
|
|
$
|
8,008
|
|
|
|
Three and Nine Months Ended September 30,
|
||
|
|
2018
|
||
Contractual principal and interest at acquisition
|
|
$
|
15,133
|
|
Nonaccretable difference
|
|
5,302
|
|
|
Expected cash flows at acquisition
|
|
9,831
|
|
|
Accretable yield
|
|
1,292
|
|
|
Fair value of purchased credit impaired loans
|
|
$
|
8,539
|
|
Commitments to extend credit
|
$
|
304.2
|
million
|
Standby letters of credit
|
$
|
10.6
|
million
|
|
|
Balance as of
September 30, 2018 |
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Other
Unobservable
Inputs
(Level 3)
|
||||||||
Debt securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Government-sponsored enterprises (GSEs)
|
|
$
|
27,984
|
|
|
$
|
—
|
|
|
$
|
27,984
|
|
|
$
|
—
|
|
Mortgage-backed securities
|
|
104,518
|
|
|
—
|
|
|
104,518
|
|
|
—
|
|
||||
Other debt securities
|
|
924
|
|
|
—
|
|
|
924
|
|
|
—
|
|
||||
Municipal securities
|
|
39,613
|
|
|
—
|
|
|
39,613
|
|
|
—
|
|
||||
Total securities available-for-sale
|
|
$
|
173,039
|
|
|
$
|
—
|
|
|
$
|
173,039
|
|
|
$
|
—
|
|
|
|
Balance as of
December 31, 2017 |
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Other
Unobservable
Inputs
(Level 3)
|
||||||||
Debt securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Government-sponsored enterprises (GSEs)
|
|
$
|
25,776
|
|
|
$
|
—
|
|
|
$
|
25,776
|
|
|
$
|
—
|
|
Mortgage-backed securities
|
|
116,215
|
|
|
—
|
|
|
116,215
|
|
|
—
|
|
||||
Other debt securities
|
|
950
|
|
|
—
|
|
|
950
|
|
|
—
|
|
||||
Municipal securities
|
|
9,003
|
|
|
—
|
|
|
9,003
|
|
|
—
|
|
||||
Total securities available-for-sale
|
|
$
|
151,944
|
|
|
$
|
—
|
|
|
$
|
151,944
|
|
|
$
|
—
|
|
|
|
Balance as of
September 30, 2018 |
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
|
Significant Other Observable Inputs (Level 2)
|
|
Significant Other Unobservable Inputs (Level 3)
|
||||||||
Impaired loans
|
|
$
|
522
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
522
|
|
Foreclosed assets
|
|
4,230
|
|
|
—
|
|
|
—
|
|
|
4,230
|
|
|
|
Balance as of
December 31, 2017 |
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
|
Significant Other Observable Inputs (Level 2)
|
|
Significant Other Unobservable Inputs (Level 3)
|
||||||||
Impaired loans
|
|
$
|
769
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
769
|
|
Foreclosed assets
|
|
3,254
|
|
|
—
|
|
|
—
|
|
|
3,254
|
|
|
|
Balance as of
September 30, 2018 |
|
Valuation
Technique |
|
Significant Other
Unobservable Input |
|
Weighted
Average of Input |
|||
Impaired loans
|
|
$
|
522
|
|
|
Appraisal and Cashflow
|
|
Appraisal and Cashflow Discounts
|
|
35
|
%
|
Foreclosed assets
|
|
4,230
|
|
|
Appraisal
|
|
Appraisal Discounts
|
|
12
|
%
|
|
|
Balance as of
December 31, 2017 |
|
Valuation
Technique |
|
Significant Other
Unobservable Input |
|
Weighted
Average of Input |
|||
Impaired loans
|
|
$
|
769
|
|
|
Appraisal
|
|
Appraisal Discounts
|
|
36
|
%
|
Foreclosed assets
|
|
3,254
|
|
|
Appraisal
|
|
Appraisal Discounts
|
|
18
|
%
|
|
|
September 30, 2018
|
||||||||||||||||
|
|
|
|
Fair Value Measurements Using
|
|
|
||||||||||||
|
|
Carrying
Amount
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Estimated
Fair Value
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
|
$
|
130,104
|
|
|
130,104
|
|
|
—
|
|
|
—
|
|
|
$
|
130,104
|
|
|
Securities available-for-sale
|
|
173,039
|
|
|
—
|
|
|
173,039
|
|
|
—
|
|
|
173,039
|
|
|||
Restricted investments
|
|
10,736
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|||
Loans, net
|
|
1,578,038
|
|
|
—
|
|
|
—
|
|
|
1,576,607
|
|
|
1,576,607
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Noninterest-bearing demand deposits
|
|
301,197
|
|
|
—
|
|
|
301,197
|
|
|
—
|
|
|
301,197
|
|
|||
Interest-bearing demand deposits
|
|
267,146
|
|
|
—
|
|
|
267,146
|
|
|
—
|
|
|
267,146
|
|
|||
Money Market and Savings deposits
|
|
570,172
|
|
|
—
|
|
|
570,172
|
|
|
—
|
|
|
570,172
|
|
|||
Time deposits
|
|
568,796
|
|
|
—
|
|
|
570,407
|
|
|
—
|
|
|
570,407
|
|
|||
Securities sold under agreements to repurchase
|
|
16,786
|
|
|
—
|
|
|
16,786
|
|
|
—
|
|
|
16,786
|
|
|||
Federal Home Loan Bank advances and other borrowings
|
|
25,324
|
|
|
—
|
|
|
25,324
|
|
|
—
|
|
|
25,324
|
|
|||
Subordinated debt
|
|
39,158
|
|
|
—
|
|
|
—
|
|
|
39,201
|
|
39,158
|
|
39,201
|
|
|
|
December 31, 2017
|
|||||||||||||||
|
|
|
|
Fair Value Measurements Using
|
|
|
|||||||||||
|
|
Carrying
Amount
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Estimated
Fair Value
|
|||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and cash equivalents
|
|
$
|
113,027
|
|
|
113,027
|
|
|
—
|
|
|
—
|
|
|
$
|
113,027
|
|
Securities available-for-sale
|
|
151,944
|
|
|
—
|
|
|
151,944
|
|
|
—
|
|
|
151,944
|
|
||
Restricted investments
|
|
6,431
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
||
Loans, net
|
|
1,317,398
|
|
|
—
|
|
|
—
|
|
|
1,292,303
|
|
|
1,292,303
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Noninterest-bearing demand deposits
|
|
220,520
|
|
|
—
|
|
|
220,520
|
|
|
—
|
|
|
250,520
|
|
||
Interest-bearing demand deposits
|
|
231,644
|
|
|
—
|
|
|
231,644
|
|
|
—
|
|
|
231,644
|
|
||
Money Market and Savings deposits
|
|
543,645
|
|
|
—
|
|
|
543,645
|
|
|
—
|
|
|
543,645
|
|
||
Time deposits
|
|
442,774
|
|
|
—
|
|
|
443,547
|
|
|
—
|
|
|
443,547
|
|
||
Securities sold under agreements to repurchase
|
|
24,055
|
|
|
—
|
|
|
24,055
|
|
|
—
|
|
|
24,055
|
|
||
Federal Home Loan Bank advances and other borrowings
|
|
43,600
|
|
|
—
|
|
|
43,600
|
|
|
—
|
|
|
43,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2018
|
|
|
Balance Sheet Location
|
Weighted Average Remaining Maturity (In Years)
|
Weighted Average Pay Rate
|
Receive Rate
|
Notional Amount
|
Estimated Fair Value
|
Asset derivatives
|
|
|
|
|
|
|
Interest rate swap agreements - securities
|
Other assets
|
9.59
|
3.10%
|
3 month LIBOR
|
$11,000
|
$14
|
|
|
|
|
|
|
|
Liability derivatives
|
|
|
|
|
|
|
Interest rate swap agreements - securities
|
Other assets
|
9.63
|
3.13%
|
3 month LIBOR
|
$14,000
|
-$21
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2018
|
|
Interest Income
|
Total amount of income and expense line items presented in the consolidated statements of income
|
$65,439
|
|
|
Gain (loss) on fair value hedging relationship
|
|
Interest rate swap agreements - securities:
|
|
Hedged items
|
(7)
|
Derivative designated as hedging instruments
|
7
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2018
|
|
Interest Income
|
Total amount of income and expense line items presented in the consolidated statements of income
|
$23,068
|
|
|
Gain (loss) on fair value hedging relationship
|
|
Interest rate swap agreements - securities:
|
|
Hedged items
|
(7)
|
Derivative designated as hedging instruments
|
7
|
|
|
|
|
|
Carrying Amount of the Hedged Assets (in thousands)
|
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets
|
Line item on the balance sheet
|
September 30, 2018
|
September 30, 2018
|
|
|
|
Securities available-for-sale
|
$27,639
|
$7
|
|
|
|
•
|
Net income available to common shareholders totaled
$4.3 million
and
$11.7 million
, during the
third
quarter and the first
nine
months of
2018
, respectively, compared to
$1.7 million
and
$4.8 million
for the same periods in
2017
.
|
•
|
Earnings per diluted common share was
$0.34
and
$0.96
during the
third
quarter and the first
nine
months of
2018
, respectively, compared to
$0.20
and
$0.59
for the same periods in
2017
.
|
•
|
Annualized return on average assets was
0.85 percent
third
quarter of
2018
and
0.82 percent
for first
nine
months of
2018
.
|
•
|
Yield on earning assets, taxable equivalent, of
5.03 percent
, an increase of
0.33
percentage points from a year ago.
|
•
|
Noninterest expense to average assets of
2.90 percent
, a decrease of
0.44
percentage points from a year ago.
|
•
|
Completed subordinated debt offering of $40 million during the quarter.
|
(1)
|
Loans include nonaccrual loans. Loan fees included in loan income was
$700 thousand
and
$594 thousand
for the quarters ended
September 30, 2018
and
2017
, respectively. Yields related to loans exempt from income taxes are stated on a taxable-equivalent basis assuming a federal income tax rate of 21.0 percent in 2018 and 34.0 percent in 2017, respectively. The taxable-equivalent adjustment was
$2 thousand
for the period ended
September 30, 2018
and
$5 thousand
for the period ended
September 30, 2017
.
|
(2)
|
Yields related to investment securities exempt from income taxes are stated on a taxable-equivalent basis assuming a federal income tax rate of 21.0 percent in 2018 and 34.0 percent in 2017, respectively. The taxable-equivalent adjustment was
$35 thousand
for the period ended
September 30, 2018
and
$16 thousand
for the period ended
September 30, 2017
.
|
(3)
|
Net interest spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities.
|
(4)
|
Net interest margin represents net interest income divided by average interest-earning assets.
|
(1)
|
Loans include nonaccrual loans. Loan fees included in loan income was
$1.3 million
and
$1.2 million
for the quarters ended
September 30, 2018
and
2017
, respectively. Yields related to loans exempt from income taxes are stated on a taxable-equivalent basis assuming a federal income tax rate of 21.0 percent in 2018 and 34.0 percent in 2017, respectively. The taxable-equivalent adjustment was
$5 thousand
for the period ended
September 30, 2018
and
$7 thousand
for the period ended
September 30, 2017
.
|
(2)
|
Yields related to investment securities exempt from income taxes are stated on a taxable-equivalent basis assuming a federal income tax rate of 21.0 percent in 2018 and 34.0 percent in 2017, respectively. The taxable-equivalent adjustment was
$65 thousand
for the period ended
September 30, 2018
and
$32 thousand
for the period ended
September 30, 2017
.
|
(3)
|
Net interest spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities.
|
(4)
|
Net interest margin represents net interest income divided by average interest-earning assets.
|
|
Three Months Ended September 30,
|
|||||||||||
|
2018
|
Compared to
|
2017
|
|||||||||
|
Increase (decrease) due to
|
|||||||||||
|
|
Rate
|
|
|
Volume
|
|
Net
|
|||||
Interest-earning assets:
|
|
|
|
|
|
|
||||||
Loans (1)
|
|
$
|
697
|
|
|
$
|
9,380
|
|
|
$
|
10,077
|
|
Investment securities and interest-bearing due from banks (2)
|
|
249
|
|
|
355
|
|
|
604
|
|
|||
Federal funds and other
|
|
49
|
|
|
35
|
|
|
84
|
|
|||
Total interest-earning assets
|
|
995
|
|
|
9,770
|
|
|
10,765
|
|
|||
|
|
|
|
|
|
|
||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
||||||
Interest-bearing demand deposits
|
|
100
|
|
|
65
|
|
|
165
|
|
|||
Money market and savings deposits
|
|
630
|
|
|
446
|
|
|
1,076
|
|
|||
Time deposits
|
|
754
|
|
|
600
|
|
|
1,354
|
|
|||
Total interest-bearing deposits
|
|
1,484
|
|
|
1,111
|
|
|
2,595
|
|
|||
Securities sold under agreement to repurchase
|
|
(1
|
)
|
|
(2
|
)
|
|
(3
|
)
|
|||
Federal Home Loan Bank advances and other borrowings
|
|
(5
|
)
|
|
228
|
|
|
223
|
|
|||
Total interest-bearing liabilities
|
|
1,478
|
|
|
1,337
|
|
|
2,815
|
|
|||
Net interest income
|
|
$
|
(483
|
)
|
|
$
|
8,433
|
|
|
$
|
7,950
|
|
(1)
|
Loans include nonaccrual loans. Loan fees included in loan income was
$700 thousand
and
$594 thousand
for the quarters ended
September 30, 2018
and
2017
, respectively. Yields related to loans exempt from income taxes are stated on a taxable-equivalent basis assuming a federal income tax rate of 21.0 percent in 2018 and 34.0 percent in 2017, respectively. The taxable-equivalent adjustment was
$2 thousand
for the period ended
September 30, 2018
and
$5 thousand
for the period ended
September 30, 2017
.
|
(2)
|
Yields related to investment securities exempt from income taxes are stated on a taxable-equivalent basis assuming a federal income tax rate of 21.0 percent in 2018 and 34.0 percent in 2017, respectively. The taxable-equivalent adjustment was
$35 thousand
for the period ended
September 30, 2018
and
$16 thousand
for the period ended
September 30, 2017
.
|
|
Nine Months Ended September 30,
|
|||||||||||
|
2018
|
Compared to
|
2017
|
|||||||||
|
Increase (decrease) due to
|
|||||||||||
|
|
Rate
|
|
|
Volume
|
|
Net
|
|||||
Interest-earning assets:
|
|
|
|
|
|
|
||||||
Loans (1)
|
|
$
|
4,204
|
|
|
$
|
24,785
|
|
|
$
|
28,989
|
|
Investment securities and interest-bearing due from banks (2)
|
|
766
|
|
|
731
|
|
|
1,497
|
|
|||
Federal funds and other
|
|
61
|
|
|
116
|
|
|
177
|
|
|||
Total interest-earning assets
|
|
5,031
|
|
|
25,632
|
|
|
30,663
|
|
|||
|
|
|
|
|
|
|
||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
||||||
Interest-bearing demand deposits
|
|
358
|
|
|
184
|
|
|
542
|
|
|||
Money market and savings deposits
|
|
1,449
|
|
|
1,163
|
|
|
2,612
|
|
|||
Time deposits
|
|
1,338
|
|
|
1,404
|
|
|
2,742
|
|
|||
Total interest-bearing deposits
|
|
3,145
|
|
|
2,751
|
|
|
5,896
|
|
|||
Securities sold under agreement to repurchase
|
|
(4
|
)
|
|
(8
|
)
|
|
(12
|
)
|
|||
Federal Home Loan Bank advances and other borrowings
|
|
402
|
|
|
154
|
|
|
556
|
|
|||
Total interest-bearing liabilities
|
|
3,543
|
|
|
2,897
|
|
|
6,440
|
|
|||
Net interest income
|
|
$
|
1,488
|
|
|
$
|
22,735
|
|
|
$
|
24,223
|
|
(1)
|
Loans include nonaccrual loans. Loan fees included in loan income was
$1.3 million
and
$1.2 million
for the quarters ended
September 30, 2018
and
2017
, respectively. Yields related to loans exempt from income taxes are stated on a taxable-equivalent basis assuming a federal income tax rate of 21.0 percent in 2018 and 34.0 percent in 2017, respectively. The taxable-equivalent adjustment was
$5 thousand
for the period ended
September 30, 2018
and
$7 thousand
for the period ended
September 30, 2017
.
|
(1)
|
Yields related to investment securities exempt from income taxes are stated on a taxable-equivalent basis assuming a federal income tax rate of 21.0 percent in 2018 and 34.0 percent in 2017, respectively. The taxable-equivalent adjustment was
$65 thousand
for the period ended
September 30, 2018
and
$32 thousand
for the period ended
September 30, 2017
.
|
|
|
Three months ended September 30,
|
||||||
(Dollars in thousands)
|
|
2018
|
|
2017
|
||||
Customer service fees
|
|
$
|
623
|
|
|
$
|
294
|
|
Gain (loss) on sale of securities, net
|
|
—
|
|
|
144
|
|
||
Gain on sale of loans and other assets
|
|
494
|
|
|
224
|
|
||
Gain on sale of foreclosed assets
|
|
—
|
|
|
—
|
|
||
Interchange and debit card transaction fees
|
|
144
|
|
|
233
|
|
||
Other noninterest income
|
|
570
|
|
|
352
|
|
||
Total noninterest income
|
|
$
|
1,831
|
|
|
$
|
1,247
|
|
|
|
Nine months ended
|
||||||
(Dollars in thousands)
|
|
2018
|
|
2017
|
||||
Customer service fees
|
|
$
|
1,753
|
|
|
$
|
850
|
|
Gain (loss) on sale of securities, net
|
|
(1
|
)
|
|
144
|
|
||
Gain on sale of loans and other assets
|
|
1,140
|
|
|
910
|
|
||
Gain on sale of foreclosed assets
|
|
—
|
|
|
—
|
|
||
Interchange and debit card transaction fees
|
|
411
|
|
|
648
|
|
||
Other noninterest income
|
|
1,601
|
|
|
895
|
|
||
Total noninterest income
|
|
$
|
4,904
|
|
|
$
|
3,446
|
|
|
|
Three months ended September 30,
|
||||||
(Dollars in thousands)
|
|
2018
|
|
2017
|
||||
Salaries and employee benefits
|
|
$
|
7,934
|
|
|
$
|
5,035
|
|
Net occupancy and equipment expense
|
|
1,638
|
|
|
1,114
|
|
||
Depository insurance
|
|
158
|
|
|
102
|
|
||
Sale of foreclosed assets and related expense, net
|
|
79
|
|
|
47
|
|
||
Advertising
|
|
228
|
|
|
177
|
|
||
Data processing
|
|
407
|
|
|
483
|
|
||
Professional services
|
|
922
|
|
|
472
|
|
||
Amortization of intangible assets
|
|
248
|
|
|
78
|
|
||
Service contracts
|
|
507
|
|
|
363
|
|
||
Merger expenses
|
|
838
|
|
|
303
|
|
||
Other operating expenses
|
|
1,800
|
|
|
1,400
|
|
||
Total noninterest expense
|
|
$
|
14,759
|
|
|
$
|
9,574
|
|
|
|
Nine months ended September 30,
|
||||||
(Dollars in thousands)
|
|
2018
|
|
2017
|
||||
Salaries and employee benefits
|
|
$
|
22,759
|
|
|
$
|
14,472
|
|
Net occupancy and equipment expense
|
|
4,694
|
|
|
3,055
|
|
||
Depository insurance
|
|
577
|
|
|
316
|
|
||
Sale of foreclosed assets and related expense, net
|
|
508
|
|
|
73
|
|
||
Advertising
|
|
627
|
|
|
471
|
|
||
Data processing
|
|
1,534
|
|
|
1,292
|
|
||
Professional services
|
|
2,739
|
|
|
1,483
|
|
||
Amortization of intangible assets
|
|
664
|
|
|
192
|
|
||
Service contracts
|
|
1,477
|
|
|
972
|
|
||
Merger expenses
|
|
2,458
|
|
|
723
|
|
||
Other operating expenses
|
|
5,258
|
|
|
3,516
|
|
||
Total noninterest expense
|
|
$
|
43,295
|
|
|
$
|
26,564
|
|
|
|
September 30, 2018
|
|||||||||||||||||
|
|
Organic
Loans |
|
Purchased
Non-Credit Impaired Loans |
|
Purchased
Credit Impaired Loans |
|
Total Amount
|
|
% of
Gross Total |
|||||||||
Commercial real estate-mortgage
|
|
$
|
501,808
|
|
|
$
|
246,646
|
|
|
$
|
17,632
|
|
|
$
|
766,086
|
|
|
48.3
|
%
|
Consumer real estate-mortgage
|
|
206,505
|
|
|
138,118
|
|
|
5,799
|
|
|
350,422
|
|
|
22.1
|
%
|
||||
Construction and land development
|
|
127,455
|
|
|
34,079
|
|
|
4,372
|
|
|
165,906
|
|
|
10.5
|
%
|
||||
Commercial and industrial
|
|
212,348
|
|
|
76,674
|
|
|
762
|
|
|
289,784
|
|
|
18.3
|
%
|
||||
Consumer and other
|
|
8,005
|
|
|
4,408
|
|
|
583
|
|
|
12,996
|
|
|
0.8
|
%
|
||||
Total gross loans receivable, net of deferred fees
|
|
1,056,121
|
|
|
499,925
|
|
|
29,148
|
|
|
1,585,194
|
|
|
100.0
|
%
|
||||
Allowance for loan losses
|
|
(7,137
|
)
|
|
—
|
|
|
(19
|
)
|
|
(7,156
|
)
|
|
|
|
||||
Total loans, net
|
|
$
|
1,048,984
|
|
|
$
|
499,925
|
|
|
$
|
29,129
|
|
|
$
|
1,578,038
|
|
|
|
|
|
|
December 31, 2017
|
|||||||||||||||||
|
|
Organic
Loans |
|
Purchased
Non-Credit Impaired Loans |
|
Purchased
Credit Impaired Loans |
|
Total Amount
|
|
% of
Gross Total |
|||||||||
Commercial real estate-mortgage
|
|
$
|
387,313
|
|
|
$
|
237,772
|
|
|
$
|
17,903
|
|
|
$
|
642,988
|
|
|
48.6
|
%
|
Consumer real estate-mortgage
|
|
173,988
|
|
|
112,019
|
|
|
7,450
|
|
|
293,457
|
|
|
22.2
|
%
|
||||
Construction and land development
|
|
97,116
|
|
|
33,173
|
|
|
5,120
|
|
|
135,409
|
|
|
10.2
|
%
|
||||
Commercial and industrial
|
|
135,271
|
|
|
101,958
|
|
|
858
|
|
|
238,087
|
|
|
18.0
|
%
|
||||
Consumer and other
|
|
5,925
|
|
|
5,929
|
|
|
1,463
|
|
|
13,317
|
|
|
1.0
|
%
|
||||
Total gross loans receivable, net of deferred fees
|
|
799,613
|
|
|
490,851
|
|
|
32,794
|
|
|
1,323,258
|
|
|
100.0
|
%
|
||||
Allowance for loan losses
|
|
(5,844
|
)
|
|
—
|
|
|
(16
|
)
|
|
(5,860
|
)
|
|
|
|
||||
Total loans, net
|
|
$
|
793,769
|
|
|
$
|
490,851
|
|
|
$
|
32,778
|
|
|
$
|
1,317,398
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rate Structure for Loans
|
||||||||||||||
|
|
|
|
Maturing Over One Year
|
||||||||||||||||||||
|
|
One Year
or Less
|
|
One through
Five Years
|
|
Over Five
Years
|
|
Total
|
|
Fixed
Rate
|
|
Floating
Rate
|
||||||||||||
Commercial real estate-mortgage
|
|
$
|
102,770
|
|
|
$
|
378,193
|
|
|
$
|
285,123
|
|
|
$
|
766,086
|
|
|
$
|
446,806
|
|
|
$
|
216,510
|
|
Consumer real estate-mortgage
|
|
37,592
|
|
|
134,192
|
|
|
178,638
|
|
|
350,422
|
|
|
128,274
|
|
|
184,556
|
|
||||||
Construction and land development
|
|
66,684
|
|
|
65,137
|
|
|
34,085
|
|
|
165,906
|
|
|
47,028
|
|
|
52,194
|
|
||||||
Commercial and industrial
|
|
98,749
|
|
|
123,192
|
|
|
67,842
|
|
|
289,784
|
|
|
149,709
|
|
|
41,325
|
|
||||||
Consumer and other
|
|
4,976
|
|
|
7,277
|
|
|
742
|
|
|
12,996
|
|
|
6,790
|
|
|
1,229
|
|
||||||
Total Loans
|
|
$
|
310,771
|
|
|
$
|
707,991
|
|
|
$
|
566,430
|
|
|
$
|
1,585,194
|
|
|
$
|
778,607
|
|
|
$
|
495,814
|
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||
Nonaccrual loans
|
|
$
|
1,843
|
|
|
$
|
1,764
|
|
Accruing loans past due 90 days or more (1)
|
|
843
|
|
|
1,509
|
|
||
Total nonperforming loans
|
|
2,686
|
|
|
3,273
|
|
||
Foreclosed assets
|
|
4,230
|
|
|
3,254
|
|
||
Total nonperforming assets
|
|
$
|
6,916
|
|
|
$
|
6,527
|
|
|
|
|
|
|
||||
Restructured loans not included above
|
|
$
|
693
|
|
|
$
|
41
|
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||
Commercial real estate-mortgage
|
|
$
|
3,245
|
|
|
45.4
|
%
|
|
$
|
2,465
|
|
|
42.1
|
%
|
Consumer real estate-mortgage
|
|
1,598
|
|
|
22.3
|
%
|
|
1,596
|
|
|
27.2
|
%
|
||
Construction and land development
|
|
709
|
|
|
9.9
|
%
|
|
521
|
|
|
8.9
|
%
|
||
Commercial and industrial
|
|
1,362
|
|
|
19.0
|
%
|
|
1,062
|
|
|
18.1
|
%
|
||
Consumer and other
|
|
242
|
|
|
3.4
|
%
|
|
216
|
|
|
3.7
|
%
|
||
Total allowance for loan losses
|
|
$
|
7,156
|
|
|
100.0
|
%
|
|
$
|
5,860
|
|
|
100.0
|
%
|
|
|
Nine Months Ended
|
|
Twelve Months Ended
|
||||
|
|
September 30, 2018
|
|
December 31, 2017
|
||||
Balance at beginning of period
|
|
$
|
5,860
|
|
|
$
|
5,105
|
|
Provision for loan losses
|
|
1,607
|
|
|
783
|
|
||
Charged-off loans:
|
|
|
|
|
|
|
||
Commercial real estate-mortgage
|
|
(38
|
)
|
|
—
|
|
||
Consumer real estate-mortgage
|
|
(27
|
)
|
|
(111
|
)
|
||
Construction and land development
|
|
—
|
|
|
—
|
|
||
Commercial and industrial
|
|
(178
|
)
|
|
(24
|
)
|
||
Consumer and other
|
|
(257
|
)
|
|
(141
|
)
|
||
Total charged-off loans
|
|
(500
|
)
|
|
(276
|
)
|
||
Recoveries of previously charged-off loans:
|
|
|
|
|
|
|
||
Commercial real estate-mortgage
|
|
—
|
|
|
8
|
|
||
Consumer real estate-mortgage
|
|
55
|
|
|
99
|
|
||
Construction and land development
|
|
7
|
|
|
13
|
|
||
Commercial and industrial
|
|
65
|
|
|
67
|
|
||
Consumer and other
|
|
62
|
|
|
61
|
|
||
Total recoveries of previously charged-off loans
|
|
189
|
|
|
248
|
|
||
Net charge-offs
|
|
(311
|
)
|
|
(28
|
)
|
||
Balance at end of period
|
|
$
|
7,156
|
|
|
$
|
5,860
|
|
|
|
|
|
|
||||
Ratio of allowance for loan losses to total loans outstanding at end of period
|
|
0.45
|
%
|
|
0.44
|
%
|
||
Ratio of net charge-offs (recoveries) to average loans outstanding for the period (annualized)
|
|
0.03
|
%
|
|
—
|
%
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||
U.S. Government agencies
|
|
$
|
29,127
|
|
|
$
|
26,207
|
|
State and political subdivisions
|
|
40,438
|
|
|
9,122
|
|
||
Other debt securities
|
|
976
|
|
|
974
|
|
||
Mortgage-backed securities
|
|
107,374
|
|
|
117,263
|
|
||
Total securities
|
|
$
|
177,915
|
|
|
$
|
153,566
|
|
|
|
Maturity By Years
|
||||||||||||||||||
|
|
1 or Less
|
|
1 to 5
|
|
5 to 10
|
|
Over 10
|
|
Total
|
||||||||||
Available for Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
U.S. Government agencies
|
|
$
|
—
|
|
|
$
|
21,000
|
|
|
$
|
8,127
|
|
|
$
|
—
|
|
|
$
|
29,127
|
|
State and political subdivisions
|
|
—
|
|
|
554
|
|
|
5,508
|
|
|
34,376
|
|
|
40,438
|
|
|||||
Other debt securities
|
|
—
|
|
|
—
|
|
|
976
|
|
|
—
|
|
|
976
|
|
|||||
Mortgage-backed securities
|
|
—
|
|
|
10,340
|
|
|
20,007
|
|
|
77,027
|
|
|
107,374
|
|
|||||
Total securities available for sale
|
|
$
|
—
|
|
|
$
|
31,894
|
|
|
$
|
34,618
|
|
|
$
|
111,403
|
|
|
$
|
177,915
|
|
Weighted average yield
(1)
|
|
—
|
%
|
|
1.85
|
%
|
|
2.26
|
%
|
|
3.19
|
%
|
|
2.68
|
%
|
|
September 30,
2018 |
||
Three months or less
|
$
|
44,693
|
|
Three to six months
|
73,128
|
|
|
Six to twelve months
|
128,288
|
|
|
More than twelve months
|
190,132
|
|
|
Total
|
$
|
436,241
|
|
|
|
SmartFinancial, Inc.
|
|
|
|
|
|
Date:
|
November 9, 2018
|
|
/s/ William Y. Carroll, Jr.
|
|
|
|
William Y. Carroll, Jr.
|
|
|
|
President and Chief Executive Officer
|
|
|
|
(principal executive officer)
|
|
|
|
|
Date:
|
November 9, 2018
|
|
/s/ Christopher Bryan Johnson
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Christopher Bryan Johnson
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Executive Vice President and Chief Financial Officer
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(principal financial officer and accounting officer)
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1 Year SmartFinancial Chart |
1 Month SmartFinancial Chart |
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