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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Xenith Bankshares, Inc. | NASDAQ:XBKS | 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% | 33.83 | 30.43 | 37.19 | 0 | 01:00:00 |
|
|
Virginia
|
54-2053718
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
|
One James Center, 901 E. Cary Street, Suite 1700, Richmond, Virginia
|
23219
|
(Address of principal executive offices)
|
(Zip Code)
|
PART I
|
FINANCIAL INFORMATION
|
|
|
|
|
ITEM 1
|
FINANCIAL STATEMENTS
|
|
|
|
|
|
Consolidated Balance Sheets
|
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
|
|
|
|
Consolidated Statements of Operations
|
|
|
Three and nine months ended September 30, 2016 and 2015
|
|
|
|
|
|
Consolidated Statements of Comprehensive Income
|
|
|
Three and nine months ended September 30, 2016 and 2015
|
|
|
|
|
|
Consolidated Statement of Changes in Shareholders' Equity
|
|
|
Nine months ended September 30, 2016
|
|
|
|
|
|
Consolidated Statements of Cash Flows
|
|
|
Nine months ended September 30, 2016 and 2015
|
|
|
|
|
|
Notes to Consolidated Financial Statements
|
|
|
|
|
ITEM 2
|
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
|
|
|
AND RESULTS OF OPERATIONS
|
|
|
|
|
ITEM 3
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
|
|
|
|
ITEM 4
|
CONTROLS AND PROCEDURES
|
|
|
|
|
PART II
|
OTHER INFORMATION
|
|
|
|
|
ITEM 1
|
LEGAL PROCEEDINGS
|
|
|
|
|
ITEM 1A
|
RISK FACTORS
|
|
|
|
|
ITEM 2
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
|
|
|
|
ITEM 6
|
EXHIBITS
|
|
|
|
|
|
SIGNATURES
|
|
|
|
|
(unaudited)
|
|
|
|
||||
(in thousands, except share data)
|
September 30, 2016
|
|
December 31, 2015
|
||||
Assets
|
|
|
|
||||
Cash and due from banks
|
$
|
42,712
|
|
|
$
|
17,031
|
|
Interest-bearing deposits in other banks
|
4,791
|
|
|
691
|
|
||
Overnight funds sold and due from Federal Reserve Bank
|
62,406
|
|
|
46,024
|
|
||
Investment securities available for sale, at fair value
|
328,145
|
|
|
198,174
|
|
||
Restricted equity securities, at cost
|
24,475
|
|
|
9,830
|
|
||
Loans
|
2,471,032
|
|
|
1,538,952
|
|
||
Allowance for loan losses
|
(33,730
|
)
|
|
(23,157
|
)
|
||
Net loans
|
2,437,302
|
|
|
1,515,795
|
|
||
Premises and equipment, net
|
57,182
|
|
|
52,135
|
|
||
Interest receivable
|
9,205
|
|
|
4,116
|
|
||
Other real estate owned and repossessed assets,
|
|
|
|
||||
net of valuation allowance
|
6,293
|
|
|
12,409
|
|
||
Goodwill
|
26,225
|
|
|
—
|
|
||
Other intangible assets, net
|
3,918
|
|
|
—
|
|
||
Net deferred tax assets, net of valuation allowance
|
158,343
|
|
|
92,142
|
|
||
Bank-owned life insurance
|
71,658
|
|
|
50,695
|
|
||
Other assets
|
17,879
|
|
|
6,474
|
|
||
Assets of discontinued operations
|
74,933
|
|
|
60,424
|
|
||
Totals assets
|
$
|
3,325,467
|
|
|
$
|
2,065,940
|
|
Liabilities and Shareholders' Equity
|
|
|
|
||||
Deposits:
|
|
|
|
||||
Noninterest-bearing demand
|
$
|
507,300
|
|
|
$
|
298,351
|
|
Interest-bearing:
|
|
|
|
||||
Demand
|
1,103,486
|
|
|
693,413
|
|
||
Savings
|
83,438
|
|
|
61,023
|
|
||
Time deposits:
|
|
|
|
||||
Less than $250
|
807,553
|
|
|
592,089
|
|
||
$250 or more
|
84,831
|
|
|
60,269
|
|
||
Total deposits
|
2,586,608
|
|
|
1,705,145
|
|
||
Federal Home Loan Bank borrowings
|
197,500
|
|
|
25,000
|
|
||
Other borrowings
|
38,468
|
|
|
29,689
|
|
||
Interest payable
|
645
|
|
|
463
|
|
||
Other liabilities
|
22,921
|
|
|
13,974
|
|
||
Liabilities of discontinued operations
|
14,369
|
|
|
1,048
|
|
||
Total liabilities
|
2,860,511
|
|
|
1,775,319
|
|
||
Commitments and contingencies
|
|
|
|
||||
Shareholders' equity:
|
|
|
|
||||
Preferred stock, 1,000,000 shares authorized; none issued
|
|
|
|
||||
and outstanding
|
—
|
|
|
—
|
|
||
Common stock, $0.01 par value; 1,000,000,000 shares
|
|
|
|
||||
authorized; 230,795,174 and 171,128,266 shares issued
|
|
|
|
||||
and outstanding on September 30, 2016 and December 31, 2015,
|
|
|
|
||||
respectively
|
2,308
|
|
|
1,711
|
|
||
Capital surplus
|
708,827
|
|
|
590,417
|
|
||
Accumulated deficit
|
(250,711
|
)
|
|
(302,580
|
)
|
||
Accumulated other comprehensive income, net of tax
|
3,388
|
|
|
560
|
|
||
Total shareholders' equity before non-controlling interest
|
463,812
|
|
|
290,108
|
|
||
Non-controlling interest of the discontinued operations
|
1,144
|
|
|
513
|
|
||
Total shareholders' equity
|
464,956
|
|
|
290,621
|
|
||
Total liabilities and shareholders' equity
|
$
|
3,325,467
|
|
|
$
|
2,065,940
|
|
See accompanying notes to unaudited consolidated financial statements.
|
(unaudited)
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
(in thousands, except share and per share data)
|
September 30, 2016
|
|
September 30, 2015
|
|
September 30, 2016
|
|
September 30, 2015
|
||||||||
Interest Income
|
|
|
|
|
|
|
|
||||||||
Loans, including fees
|
$
|
25,513
|
|
|
$
|
17,106
|
|
|
$
|
58,797
|
|
|
$
|
50,382
|
|
Investment securities
|
1,763
|
|
|
1,436
|
|
|
4,476
|
|
|
4,733
|
|
||||
Overnight funds sold and deposits in other banks
|
96
|
|
|
28
|
|
|
179
|
|
|
126
|
|
||||
Total interest income
|
27,372
|
|
|
18,570
|
|
|
63,452
|
|
|
55,241
|
|
||||
Interest Expense
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Demand
|
1,391
|
|
|
667
|
|
|
3,075
|
|
|
2,023
|
|
||||
Savings
|
40
|
|
|
15
|
|
|
81
|
|
|
39
|
|
||||
Time deposits
|
2,169
|
|
|
1,959
|
|
|
5,746
|
|
|
5,753
|
|
||||
Interest on deposits
|
3,600
|
|
|
2,641
|
|
|
8,902
|
|
|
7,815
|
|
||||
Federal Home Loan Bank borrowings
|
109
|
|
|
95
|
|
|
109
|
|
|
668
|
|
||||
Other borrowings
|
652
|
|
|
439
|
|
|
1,706
|
|
|
1,281
|
|
||||
Total interest expense
|
4,361
|
|
|
3,175
|
|
|
10,717
|
|
|
9,764
|
|
||||
Net interest income
|
23,011
|
|
|
15,395
|
|
|
52,735
|
|
|
45,477
|
|
||||
Provision for loan losses
|
10,685
|
|
|
(15
|
)
|
|
10,704
|
|
|
622
|
|
||||
Net interest income after provision for loan losses
|
12,326
|
|
|
15,410
|
|
|
42,031
|
|
|
44,855
|
|
||||
Noninterest Income
|
|
|
|
|
|
|
|
|
|
|
|
||||
Service charges on deposit accounts
|
1,191
|
|
|
1,273
|
|
|
3,447
|
|
|
3,713
|
|
||||
Earnings from bank-owned life insurance
|
395
|
|
|
302
|
|
|
1,046
|
|
|
956
|
|
||||
Gain on sale of investment securities available for sale
|
—
|
|
|
—
|
|
|
15
|
|
|
238
|
|
||||
Visa check card income
|
709
|
|
|
677
|
|
|
2,056
|
|
|
1,994
|
|
||||
Other
|
575
|
|
|
441
|
|
|
1,430
|
|
|
547
|
|
||||
Total noninterest income
|
2,870
|
|
|
2,693
|
|
|
7,994
|
|
|
7,448
|
|
||||
Noninterest Expense
|
|
|
|
|
|
|
|
|
|
|
|
||||
Salaries and employee benefits
|
9,880
|
|
|
10,100
|
|
|
24,990
|
|
|
26,091
|
|
||||
Professional and consultant fees
|
978
|
|
|
1,459
|
|
|
2,101
|
|
|
3,584
|
|
||||
Occupancy
|
1,594
|
|
|
1,556
|
|
|
4,428
|
|
|
4,654
|
|
||||
FDIC insurance
|
679
|
|
|
339
|
|
|
1,524
|
|
|
1,361
|
|
||||
Data processing
|
1,446
|
|
|
1,466
|
|
|
3,985
|
|
|
4,285
|
|
||||
Problem loan and repossessed asset costs
|
219
|
|
|
538
|
|
|
420
|
|
|
1,150
|
|
||||
Impairments and gains and losses on sales of other real estate owned and repossessed assets, net
|
685
|
|
|
225
|
|
|
112
|
|
|
1,471
|
|
||||
Impairments and gains and losses on sale of premises and equipment, net
|
42
|
|
|
—
|
|
|
41
|
|
|
14
|
|
||||
Equipment
|
309
|
|
|
300
|
|
|
812
|
|
|
942
|
|
||||
Board fees
|
493
|
|
|
433
|
|
|
1,133
|
|
|
1,028
|
|
||||
Advertising and marketing
|
398
|
|
|
115
|
|
|
503
|
|
|
389
|
|
||||
Merger-related
|
12,910
|
|
|
—
|
|
|
15,555
|
|
|
—
|
|
||||
Other
|
2,902
|
|
|
1,948
|
|
|
6,813
|
|
|
4,883
|
|
||||
Total noninterest expense
|
32,535
|
|
|
18,479
|
|
|
62,417
|
|
|
49,852
|
|
||||
(Loss) income from continuing operations before (benefit) provision for income taxes
|
(17,339
|
)
|
|
(376
|
)
|
|
(12,392
|
)
|
|
2,451
|
|
||||
(Benefit) provision for income taxes
|
(64,840
|
)
|
|
28
|
|
|
(62,794
|
)
|
|
44
|
|
||||
Net income (loss) from continuing operations
|
47,501
|
|
|
(404
|
)
|
|
50,402
|
|
|
2,407
|
|
||||
Net income from discontinued operations before provision for income taxes
|
2,011
|
|
|
1,231
|
|
|
3,900
|
|
|
3,602
|
|
||||
Provision for income taxes
|
842
|
|
|
23
|
|
|
877
|
|
|
82
|
|
||||
Net income from discontinued operations attributable to non-controlling interest
|
806
|
|
|
501
|
|
|
1,556
|
|
|
1,563
|
|
||||
Net income from discontinued operations
|
363
|
|
|
707
|
|
|
1,467
|
|
|
1,957
|
|
||||
Net income attributable to Xenith Bankshares, Inc.
|
$
|
47,864
|
|
|
$
|
303
|
|
|
$
|
51,869
|
|
|
$
|
4,364
|
|
Basic and diluted income per share
|
$
|
0.23
|
|
|
$
|
—
|
|
|
$
|
0.28
|
|
|
$
|
0.03
|
|
See accompanying notes to unaudited consolidated financial statements.
|
(unaudited)
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||||||||||||||
(in thousands)
|
September 30, 2016
|
|
September 30, 2015
|
|
September 30, 2016
|
|
September 30, 2015
|
||||||||||||||||||||||||
Net income (loss) attributable to Xenith Bankshares, Inc.
|
|
|
|
$
|
47,864
|
|
|
|
|
|
$
|
303
|
|
|
|
|
|
$
|
51,869
|
|
|
|
|
|
$
|
4,364
|
|
||||
Other comprehensive income, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Change in unrealized gain on securities available for sale
|
$
|
475
|
|
|
|
|
|
$
|
350
|
|
|
|
|
|
$
|
4,178
|
|
|
|
|
|
$
|
1,048
|
|
|
|
|
||||
Income tax effect
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
(1,340
|
)
|
|
|
|
|
—
|
|
|
|
|
||||||||
Reclassification adjustment for securities gains included in net income
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
(15
|
)
|
|
|
|
|
(238
|
)
|
|
|
|
||||||||
Income tax effect
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
5
|
|
|
|
|
|
—
|
|
|
|
|
||||||||
Other comprehensive income, net of tax
|
|
|
|
475
|
|
|
|
|
|
350
|
|
|
|
|
|
2,828
|
|
|
|
|
|
810
|
|
||||||||
Comprehensive income attributable to Xenith Bankshares, Inc.
|
|
|
|
$
|
48,339
|
|
|
|
|
|
$
|
653
|
|
|
|
|
|
$
|
54,697
|
|
|
|
|
|
$
|
5,174
|
|
||||
See accompanying notes to unaudited consolidated financial statements.
|
|
|
|
|
|
|
|
|
|
Accumulated Other
|
|
|
|
|
|||||||||||||
(unaudited)
|
Common Stock
|
|
Capital
|
|
Accumulated
|
|
Comprehensive Income,
|
|
Non-controlling
|
|
Total Shareholders'
|
|||||||||||||||
(in thousands, except share data)
|
Shares
|
|
Amount
|
|
Surplus
|
|
Deficit
|
|
Net of Tax
|
|
Interest
|
|
Equity
|
|||||||||||||
Balance at December 31, 2015
|
171,128,266
|
|
|
$
|
1,711
|
|
|
$
|
590,417
|
|
|
$
|
(302,580
|
)
|
|
$
|
560
|
|
|
$
|
513
|
|
|
$
|
290,621
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
51,869
|
|
|
—
|
|
|
1,556
|
|
|
53,425
|
|
||||||
Other comprehensive income, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,828
|
|
|
—
|
|
|
2,828
|
|
||||||
Issuance of common stock for the Merger
|
58,915,439
|
|
|
590
|
|
|
117,829
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
118,419
|
|
||||||
Share-based compensation expense
|
—
|
|
|
—
|
|
|
1,532
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,532
|
|
||||||
Net settlement of restricted stock units
|
725,069
|
|
|
7
|
|
|
(977
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(970
|
)
|
||||||
Stock options exercised
|
26,400
|
|
|
—
|
|
|
26
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26
|
|
||||||
Distributed non-controlling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(925
|
)
|
|
(925
|
)
|
||||||
Balance at September 30, 2016
|
230,795,174
|
|
|
$
|
2,308
|
|
|
$
|
708,827
|
|
|
$
|
(250,711
|
)
|
|
$
|
3,388
|
|
|
$
|
1,144
|
|
|
$
|
464,956
|
|
See accompanying notes to unaudited consolidated financial statements.
|
(unaudited)
|
Nine Months Ended
|
|||||
(in thousands)
|
September 30, 2016
|
September 30, 2015
|
||||
Cash flows from operating activities
|
|
|
|
|
||
Net income from continuing operations
|
$
|
50,402
|
|
$
|
2,407
|
|
Net income from discontinued operations
|
3,023
|
|
3,520
|
|
||
Adjustments to reconcile net income to net cash used in operating activities:
|
|
|
|
|
||
Depreciation and amortization
|
2,146
|
|
2,387
|
|
||
Deferred income tax expense
|
(67,536
|
)
|
—
|
|
||
Amortization of fair value adjustments
|
(798
|
)
|
444
|
|
||
Provision for loan losses
|
10,704
|
|
622
|
|
||
Share-based compensation expense
|
1,532
|
|
1,428
|
|
||
Net amortization of premiums and accretion of discounts on investment securities available for sale
|
1,541
|
|
1,712
|
|
||
Income from bank-owned life insurance
|
(1,046
|
)
|
(956
|
)
|
||
Gain on sale of investment securities available for sale
|
(15
|
)
|
(238
|
)
|
||
Impairments and gains and losses on sales of other real estate owned and repossessed assets
|
56
|
|
1,471
|
|
||
Impairments and gains and losses on sales of premises and equipment
|
41
|
|
14
|
|
||
Changes in:
|
|
|
|
|
||
Interest receivable
|
(625
|
)
|
354
|
|
||
Other assets
|
10,883
|
|
720
|
|
||
Interest payable
|
(103
|
)
|
(77
|
)
|
||
Other liabilities
|
(37,483
|
)
|
1,690
|
|
||
Net cash provided by (used in) operating activities - continuing operations
|
(27,278
|
)
|
15,498
|
|
||
Net cash used in operating activities - discontinued operations
|
(1,188
|
)
|
(26,451
|
)
|
||
Cash used in operating activities
|
(28,466
|
)
|
(10,953
|
)
|
||
Cash flows from investing activities
|
|
|
|
|
||
Cash acquired in acquisition
|
69,241
|
|
—
|
|
||
Proceeds from maturities and calls of investment securities available for sale
|
27,002
|
|
25,670
|
|
||
Proceeds from sale of investment securities available for sale
|
31,632
|
|
82,695
|
|
||
Purchase of investment securities available for sale
|
(46,943
|
)
|
(10,842
|
)
|
||
Proceeds from sale of restricted equity securities
|
11,317
|
|
8,916
|
|
||
Purchase of restricted equity securities
|
(25,962
|
)
|
(3,487
|
)
|
||
Net increase in loans
|
(107,841
|
)
|
(118,432
|
)
|
||
Proceeds from sale of other real estate owned and repossessed assets, net
|
12,078
|
|
10,721
|
|
||
Purchase of premises and equipment
|
(1,788
|
)
|
(588
|
)
|
||
Proceeds from bank-owned life insurance death benefit
|
—
|
|
80
|
|
||
Net cash used in investing activities - continuing operations
|
(31,264
|
)
|
(5,267
|
)
|
||
Net cash provided by (used in) investing activities - discontinued operations
|
1,473
|
|
(1,375
|
)
|
||
Cash used in investing activities
|
(29,791
|
)
|
(6,642
|
)
|
||
Net increase in deposits
|
(74,615
|
)
|
105,460
|
|
||
Net increase in short term Federal Home Loan Bank borrowings
|
172,500
|
|
40,000
|
|
||
Repayments of long term Federal Home Loan Bank borrowings
|
—
|
|
(165,500
|
)
|
||
Net increase in other borrowings
|
8,405
|
|
—
|
|
||
Issuance of common stock related to bank acquisition
|
—
|
|
—
|
|
||
Issuance of common stock related to exercised options
|
26
|
|
—
|
|
||
Repurchase of common stock in the settlement of restricted stock units
|
(970
|
)
|
3
|
|
||
Cash consideration paid in acquisition
|
(1
|
)
|
—
|
|
||
Distributed non-controlling interest
|
(925
|
)
|
(1,226
|
)
|
||
Net cash provided by (used in) financing activities
|
104,420
|
|
(21,263
|
)
|
||
Increase (decrease) in cash and cash equivalents
|
46,163
|
|
(38,858
|
)
|
||
Cash and cash equivalents at beginning of period
|
63,746
|
|
103,619
|
|
||
Cash and cash equivalents at end of period
|
$
|
109,909
|
|
$
|
64,761
|
|
Supplemental cash flow information:
|
|
|
|
|
||
Cash paid for interest
|
$
|
10,140
|
|
$
|
9,218
|
|
Cash paid for income taxes
|
79
|
|
8
|
|
||
Supplemental non-cash information:
|
|
|
|
|
||
Change in unrealized gain on investment securities available for sale, net of tax
|
$
|
2,828
|
|
$
|
810
|
|
Transfer from other real estate owned and repossessed assets to loans
|
1,194
|
|
696
|
|
||
Transfer from other real estate owned and repossessed assets to other assets
|
—
|
|
449
|
|
||
Transfer from loans to other real estate owned and repossessed assets
|
5,003
|
|
4,066
|
|
||
Transfer from premises and equipment to other real estate owned and repossessed assets
|
734
|
|
—
|
|
||
Non-cash transaction related to the Merger
|
|
|
||||
Assets acquired
|
1,094,987
|
|
—
|
|
||
Liabilities assumed
|
1,002,793
|
|
—
|
|
||
See accompanying notes to unaudited consolidated financial statements.
|
(in thousands, except share and per share data)
|
|
|
||
Fair value of assets acquired:
|
||||
Cash and cash equivalents
|
|
$
|
69,241
|
|
Securities
|
|
139,025
|
|
|
Loans
|
|
828,880
|
|
|
Premises and equipment
|
|
6,180
|
|
|
Other real estate owned
|
|
738
|
|
|
Core deposit intangible
|
|
4,006
|
|
|
Accrued interest receivable
|
|
4,464
|
|
|
Deferred tax asset
|
|
4,741
|
|
|
Bank owned life insurance
|
|
19,917
|
|
|
Other assets
|
|
17,795
|
|
|
Total assets
|
|
$
|
1,094,987
|
|
Fair value of liabilities assumed:
|
||||
Deposits
|
|
$
|
956,078
|
|
Accrued interest payable
|
|
285
|
|
|
Supplemental executive retirement plan
|
|
2,162
|
|
|
Other liabilities
|
|
44,268
|
|
|
Total liabilities
|
|
$
|
1,002,793
|
|
|
|
|
||
Net identifiable assets acquired
|
|
$
|
92,194
|
|
|
|
|
||
Consideration paid:
|
||||
Company's common shares issued
|
|
58,915,439
|
|
|
Purchase price per share (1)
|
|
$
|
1.97
|
|
Value of common stock issued
|
|
$
|
116,063
|
|
Estimated fair value of stock options
|
|
2,355
|
|
|
Cash in lieu of fractional shares
|
|
1
|
|
|
Total consideration paid
|
|
118,419
|
|
|
|
|
|
||
Goodwill
|
|
$
|
26,225
|
|
_______________________
|
|
|
||
(1) The value of the shares of Company common stock exchanged for shares of Legacy Xenith common stock was based upon the closing price of Company common stock at July 28, 2016, the last trading day prior to the date of completion of the Merger.
|
(in thousands)
|
Purchased Performing
|
|
Purchased Impaired
|
|
Total
|
||||||
Principal payments receivable
|
$
|
830,613
|
|
|
$
|
9,851
|
|
|
$
|
840,464
|
|
Fair value adjustment - credit and interest
|
(8,558
|
)
|
|
(3,026
|
)
|
|
(11,584
|
)
|
|||
Fair value of acquired loans
|
$
|
822,055
|
|
|
$
|
6,825
|
|
|
$
|
828,880
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||
(in thousands, except per share data)
|
2016
|
2015
|
|
2016
|
2015
|
||||||||
Revenue (net interest income plus noninterest income)
|
$
|
27,423
|
|
$
|
26,396
|
|
|
$
|
79,197
|
|
$
|
79,452
|
|
Net (loss) income from continuing operations
|
$
|
(3,494
|
)
|
$
|
482
|
|
|
$
|
3,523
|
|
$
|
3,703
|
|
(Loss) income per common share (basic and diluted)
|
$
|
(0.02
|
)
|
$
|
—
|
|
|
$
|
0.02
|
|
$
|
0.02
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||
(in thousands)
|
September 30, 2016
|
September 30, 2015
|
|
September 30, 2016
|
September 30, 2015
|
||||||||
Net interest income
|
$
|
133
|
|
$
|
197
|
|
|
$
|
440
|
|
$
|
544
|
|
Provision (benefit) for loan losses
|
(3
|
)
|
15
|
|
|
(22
|
)
|
(22
|
)
|
||||
Net interest income
|
|
|
|
|
|
|
|
|
|||||
after provision for loan losses
|
136
|
|
182
|
|
|
462
|
|
566
|
|
||||
Noninterest income
|
6,760
|
|
5,722
|
|
|
16,987
|
|
15,444
|
|
||||
Noninterest expense:
|
|
|
|
|
|
||||||||
Salaries and employee benefits
|
3,901
|
|
3,588
|
|
|
10,368
|
|
9,514
|
|
||||
Professional and consultant fees
|
73
|
|
83
|
|
|
204
|
|
226
|
|
||||
Occupancy
|
176
|
|
195
|
|
|
590
|
|
514
|
|
||||
Data processing
|
146
|
|
50
|
|
|
371
|
|
269
|
|
||||
Equipment
|
13
|
|
49
|
|
|
56
|
|
92
|
|
||||
Advertising and marketing
|
137
|
|
271
|
|
|
568
|
|
701
|
|
||||
Other
|
439
|
|
437
|
|
|
1,392
|
|
1,092
|
|
||||
Total noninterest expense
|
4,885
|
|
4,673
|
|
|
13,549
|
|
12,408
|
|
||||
Net income before provision
|
|
|
|
|
|
|
|
|
|||||
for income taxes
|
2,011
|
|
1,231
|
|
|
3,900
|
|
3,602
|
|
||||
Provision for income taxes
|
842
|
|
23
|
|
|
877
|
|
82
|
|
||||
Net income
|
1,169
|
|
1,208
|
|
|
3,023
|
|
3,520
|
|
||||
Net income attributable to
|
|
|
|
|
|
|
|
|
|
||||
non-controlling interest
|
806
|
|
501
|
|
|
1,556
|
|
1,563
|
|
||||
Net income attributable to
|
|
|
|
|
|
|
|
|
|
||||
Xenith Bankshares, Inc.
|
$
|
363
|
|
$
|
707
|
|
|
$
|
1,467
|
|
$
|
1,957
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
(in thousands, except share and per share data)
|
September 30, 2016
|
|
September 30, 2015
|
|
September 30, 2016
|
|
September 30, 2015
|
||||||||
Net income attributable to Xenith Bankshares, Inc.
|
$
|
47,864
|
|
|
$
|
303
|
|
|
$
|
51,869
|
|
|
$
|
4,364
|
|
Shares:
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding
|
209,592,890
|
|
|
170,803,757
|
|
|
184,159,924
|
|
|
170,694,643
|
|
||||
Weighted average vested restricted stock units
|
461,687
|
|
|
725,381
|
|
|
461,687
|
|
|
725,381
|
|
||||
Weighted average number of common shares outstanding
|
210,054,577
|
|
|
171,529,138
|
|
|
184,621,611
|
|
|
171,420,024
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
Dilutive effect of TARP-related warrants
|
502,469
|
|
|
496,782
|
|
|
472,632
|
|
|
474,212
|
|
||||
Dilutive effect of restricted stock units
|
282,917
|
|
|
484,243
|
|
|
339,391
|
|
|
416,066
|
|
||||
Dilutive effect of stock options
|
368,539
|
|
|
273,334
|
|
|
172,527
|
|
|
177,799
|
|
||||
Total dilutive effect
|
1,153,925
|
|
|
1,254,359
|
|
|
984,550
|
|
|
1,068,077
|
|
||||
Diluted weighted average number of common shares outstanding
|
211,208,502
|
|
|
172,783,497
|
|
|
185,606,161
|
|
|
172,488,101
|
|
||||
Basic and diluted income per share
|
$
|
0.23
|
|
|
$
|
—
|
|
|
$
|
0.28
|
|
|
$
|
0.03
|
|
|
September 30, 2016
|
||||||||||||||
|
|
|
Gross
|
|
Gross
|
|
|
||||||||
|
|
|
Unrealized
|
|
Unrealized
|
|
|
||||||||
(in thousands)
|
Amortized Cost
|
|
Gains
|
|
Losses
|
|
Fair Value
|
||||||||
Corporate bonds
|
$
|
986
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
987
|
|
Mortgage-backed securities - Agency
|
220,094
|
|
|
3,762
|
|
|
47
|
|
|
223,809
|
|
||||
Asset-backed securities
|
14,862
|
|
|
—
|
|
|
103
|
|
|
14,759
|
|
||||
Equity securities
|
969
|
|
|
710
|
|
|
—
|
|
|
1,679
|
|
||||
Municipals
|
|
|
|
|
|
|
|
||||||||
Tax-exempt
|
68,040
|
|
|
578
|
|
|
76
|
|
|
68,542
|
|
||||
Taxable
|
18,154
|
|
|
215
|
|
|
—
|
|
|
18,369
|
|
||||
Total securities available for sale
|
$
|
323,105
|
|
|
$
|
5,266
|
|
|
$
|
226
|
|
|
$
|
328,145
|
|
|
December 31, 2015
|
||||||||||||||
|
|
|
Gross
|
|
Gross
|
|
|
||||||||
|
|
|
Unrealized
|
|
Unrealized
|
|
|
||||||||
(in thousands)
|
Amortized Cost
|
|
Gains
|
|
Losses
|
|
Fair Value
|
||||||||
U.S. agency securities
|
$
|
12,565
|
|
|
$
|
507
|
|
|
$
|
—
|
|
|
$
|
13,072
|
|
Corporate bonds
|
11,994
|
|
|
—
|
|
|
804
|
|
|
11,190
|
|
||||
Mortgage-backed securities - Agency
|
147,980
|
|
|
1,498
|
|
|
279
|
|
|
149,199
|
|
||||
Asset-backed securities
|
23,787
|
|
|
—
|
|
|
495
|
|
|
23,292
|
|
||||
Equity securities
|
970
|
|
|
451
|
|
|
—
|
|
|
1,421
|
|
||||
Total securities available for sale
|
$
|
197,296
|
|
|
$
|
2,456
|
|
|
$
|
1,578
|
|
|
$
|
198,174
|
|
|
September 30, 2016
|
||||||||||||||||||||||
(in thousands)
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
|
|
|
Unrealized
|
|
|
|
Unrealized
|
|
|
|
Unrealized
|
||||||||||||
|
Fair Value
|
|
Loss
|
|
Fair Value
|
|
Loss
|
|
Fair Value
|
|
Loss
|
||||||||||||
Mortgage-backed securities - Agency
|
$
|
14,831
|
|
|
$
|
47
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14,831
|
|
|
$
|
47
|
|
Asset-backed securities
|
14,758
|
|
|
103
|
|
|
—
|
|
|
—
|
|
|
14,758
|
|
|
103
|
|
||||||
Municipals
|
17,143
|
|
|
76
|
|
|
—
|
|
|
—
|
|
|
17,143
|
|
|
76
|
|
||||||
Total securities
|
$
|
46,732
|
|
|
$
|
226
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
46,732
|
|
|
$
|
226
|
|
|
December 31, 2015
|
||||||||||||||||||||||
(in thousands)
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
|
|
|
Unrealized
|
|
|
|
Unrealized
|
|
|
|
Unrealized
|
||||||||||||
|
Fair Value
|
|
Loss
|
|
Fair Value
|
|
Loss
|
|
Fair Value
|
|
Loss
|
||||||||||||
Corporate bonds
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11,190
|
|
|
$
|
804
|
|
|
$
|
11,190
|
|
|
$
|
804
|
|
Mortgage-backed securities - Agency
|
56,787
|
|
|
244
|
|
|
1,517
|
|
|
35
|
|
|
58,304
|
|
|
279
|
|
||||||
Asset-backed securities
|
17,554
|
|
|
291
|
|
|
5,738
|
|
|
204
|
|
|
23,292
|
|
|
495
|
|
||||||
Total securities
|
$
|
74,341
|
|
|
$
|
535
|
|
|
$
|
18,445
|
|
|
$
|
1,043
|
|
|
$
|
92,786
|
|
|
$
|
1,578
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||||
|
Amortized
|
|
|
|
Amortized
|
|
|
||||||||
(in thousands)
|
Cost
|
|
Fair Value
|
|
Cost
|
|
Fair Value
|
||||||||
Due in one year or less
|
$
|
506
|
|
|
$
|
507
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Due after one year
|
|
|
|
|
|
|
|
||||||||
but less than five years
|
12,319
|
|
|
12,391
|
|
|
2,253
|
|
|
2,304
|
|
||||
Due after five years
|
|
|
|
|
|
|
|
||||||||
but less than ten years
|
71,725
|
|
|
72,317
|
|
|
12,518
|
|
|
11,785
|
|
||||
Due after ten years
|
2,630
|
|
|
2,683
|
|
|
9,788
|
|
|
10,173
|
|
||||
Mortgage-backed securities - Agency
|
220,094
|
|
|
223,809
|
|
|
147,980
|
|
|
149,199
|
|
||||
Asset-backed securities
|
14,862
|
|
|
14,759
|
|
|
23,787
|
|
|
23,292
|
|
||||
Equity securities
|
969
|
|
|
1,679
|
|
|
970
|
|
|
1,421
|
|
||||
Total securities available for sale
|
$
|
323,105
|
|
|
$
|
328,145
|
|
|
$
|
197,296
|
|
|
$
|
198,174
|
|
(in thousands)
|
September 30, 2016
|
|
December 31, 2015
|
||||
Commercial & Industrial
|
$
|
923,598
|
|
|
$
|
465,746
|
|
Construction
|
239,345
|
|
|
141,208
|
|
||
Commercial real estate
|
609,187
|
|
|
423,468
|
|
||
Residential real estate
|
418,166
|
|
|
347,336
|
|
||
Consumer
|
233,347
|
|
|
161,918
|
|
||
Guaranteed student loans
|
46,682
|
|
|
—
|
|
||
Deferred loan fees and related costs
|
707
|
|
|
(724
|
)
|
||
Total loans
|
$
|
2,471,032
|
|
|
$
|
1,538,952
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
(in thousands)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Balance at beginning of period
|
$
|
22,903
|
|
|
$
|
27,720
|
|
|
$
|
23,157
|
|
|
$
|
26,997
|
|
Charge-offs:
|
|
|
|
|
|
|
|
||||||||
Commercial & Industrial
|
84
|
|
|
3,723
|
|
|
1,160
|
|
|
4,259
|
|
||||
Construction
|
—
|
|
|
1,557
|
|
|
635
|
|
|
2,021
|
|
||||
Commercial real estate
|
—
|
|
|
3
|
|
|
663
|
|
|
103
|
|
||||
Residential real estate
|
340
|
|
|
313
|
|
|
2,234
|
|
|
782
|
|
||||
Consumer
|
3
|
|
|
6
|
|
|
45
|
|
|
58
|
|
||||
Guaranteed student loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Overdrafts
|
43
|
|
|
36
|
|
|
106
|
|
|
112
|
|
||||
Total charge-offs
|
470
|
|
|
5,638
|
|
|
4,843
|
|
|
7,335
|
|
||||
Recoveries:
|
|
|
|
|
|
|
|
||||||||
Commercial & Industrial
|
173
|
|
|
441
|
|
|
2,833
|
|
|
1,131
|
|
||||
Construction
|
167
|
|
|
126
|
|
|
911
|
|
|
617
|
|
||||
Commercial real estate
|
11
|
|
|
78
|
|
|
341
|
|
|
262
|
|
||||
Residential real estate
|
253
|
|
|
125
|
|
|
603
|
|
|
507
|
|
||||
Consumer
|
7
|
|
|
6
|
|
|
23
|
|
|
42
|
|
||||
Guaranteed student loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Overdrafts
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Total recoveries
|
612
|
|
|
776
|
|
|
4,712
|
|
|
2,559
|
|
||||
Net (recoveries) charge-offs
|
(142
|
)
|
|
4,862
|
|
|
131
|
|
|
4,776
|
|
||||
Provision (benefit) for loan losses
|
10,685
|
|
|
(15
|
)
|
|
10,704
|
|
|
622
|
|
||||
Balance at end of period
|
$
|
33,730
|
|
|
$
|
22,843
|
|
|
$
|
33,730
|
|
|
$
|
22,843
|
|
|
September 30, 2016
|
||||||||||
|
|
|
Individually Evaluated
|
|
Collectively Evaluated
|
||||||
(in thousands)
|
Total Amount
|
|
for Impairment
|
|
for Impairment
|
||||||
Allowance for loan losses applicable to:
|
|
|
|
|
|
||||||
Purchased credit-impaired loans
|
|
|
|
|
|
||||||
Commercial & Industrial
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|||
Commercial real estate
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential real estate
|
—
|
|
|
—
|
|
|
—
|
|
|||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total purchased credit-impaired loans
|
—
|
|
|
—
|
|
|
—
|
|
|||
Originated and other purchased loans
|
|
|
|
|
|
||||||
Commercial & Industrial
|
10,979
|
|
|
7,724
|
|
|
3,255
|
|
|||
Construction
|
8,579
|
|
|
7,167
|
|
|
1,412
|
|
|||
Commercial real estate
|
3,416
|
|
|
901
|
|
|
2,515
|
|
|||
Residential real estate
|
6,721
|
|
|
1,120
|
|
|
5,601
|
|
|||
Consumer
|
2,051
|
|
|
1,180
|
|
|
871
|
|
|||
Guaranteed student loans
|
—
|
|
|
—
|
|
|
—
|
|
|||
Unallocated qualitative
|
1,984
|
|
|
—
|
|
|
1,984
|
|
|||
Total originated and other purchased loans
|
33,730
|
|
|
18,092
|
|
|
15,638
|
|
|||
Total allowance for loan losses
|
$
|
33,730
|
|
|
$
|
18,092
|
|
|
$
|
15,638
|
|
Loan balances applicable to:
|
|
|
|
|
|
||||||
Purchased credit-impaired loans
|
|
|
|
|
|
||||||
Commercial & Industrial
|
$
|
875
|
|
|
$
|
875
|
|
|
$
|
—
|
|
Construction
|
1,824
|
|
|
1,824
|
|
|
—
|
|
|||
Commercial real estate
|
1,607
|
|
|
1,607
|
|
|
—
|
|
|||
Residential real estate
|
2,326
|
|
|
2,326
|
|
|
—
|
|
|||
Consumer
|
16
|
|
|
16
|
|
|
—
|
|
|||
Total purchased credit-impaired loans
|
6,648
|
|
|
6,648
|
|
|
—
|
|
|||
Originated and other purchased loans
|
|
|
|
|
|
||||||
Commercial & Industrial
|
922,723
|
|
|
28,647
|
|
|
894,076
|
|
|||
Construction
|
237,521
|
|
|
15,649
|
|
|
221,872
|
|
|||
Commercial real estate
|
607,580
|
|
|
9,933
|
|
|
597,647
|
|
|||
Residential real estate
|
415,840
|
|
|
10,928
|
|
|
404,912
|
|
|||
Consumer
|
233,331
|
|
|
1,400
|
|
|
231,931
|
|
|||
Guaranteed student loans
|
46,682
|
|
|
—
|
|
|
46,682
|
|
|||
Deferred loan fees and related costs
|
707
|
|
|
—
|
|
|
707
|
|
|||
Total originated and other purchased loans
|
2,464,384
|
|
|
66,557
|
|
|
2,397,827
|
|
|||
Total loans
|
$
|
2,471,032
|
|
|
$
|
73,205
|
|
|
$
|
2,397,827
|
|
|
December 31, 2015
|
||||||||||
|
|
|
Individually Evaluated
|
|
Collectively Evaluated
|
||||||
(in thousands)
|
Total Amount
|
|
for Impairment
|
|
for Impairment
|
||||||
Allowance for loan losses applicable to:
|
|
|
|
|
|
||||||
Purchased credit-impaired loans
|
|
|
|
|
|
||||||
Commercial & Industrial
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|||
Commercial real estate
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential real estate
|
—
|
|
|
—
|
|
|
—
|
|
|||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total purchased credit-impaired loans
|
—
|
|
|
—
|
|
|
—
|
|
|||
Originated and other purchased loans
|
|
|
|
|
|
||||||
Commercial & Industrial
|
5,925
|
|
|
1,593
|
|
|
4,332
|
|
|||
Construction
|
3,339
|
|
|
951
|
|
|
2,388
|
|
|||
Commercial real estate
|
3,952
|
|
|
640
|
|
|
3,312
|
|
|||
Residential real estate
|
7,501
|
|
|
2,175
|
|
|
5,326
|
|
|||
Consumer
|
840
|
|
|
88
|
|
|
752
|
|
|||
Guaranteed student loans
|
—
|
|
|
—
|
|
|
—
|
|
|||
Unallocated qualitative
|
1,600
|
|
|
—
|
|
|
1,600
|
|
|||
Total originated and other purchased loans
|
23,157
|
|
|
5,447
|
|
|
17,710
|
|
|||
Total allowance for loan losses
|
$
|
23,157
|
|
|
$
|
5,447
|
|
|
$
|
17,710
|
|
Loan balances applicable to:
|
|
|
|
|
|
||||||
Purchased credit-impaired loans
|
|
|
|
|
|
||||||
Commercial & Industrial
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|||
Commercial real estate
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential real estate
|
—
|
|
|
—
|
|
|
—
|
|
|||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total purchased credit-impaired loans
|
—
|
|
|
—
|
|
|
—
|
|
|||
Originated and other purchased loans
|
|
|
|
|
|
||||||
Commercial & Industrial
|
465,746
|
|
|
23,505
|
|
|
442,241
|
|
|||
Construction
|
141,208
|
|
|
21,092
|
|
|
120,116
|
|
|||
Commercial real estate
|
423,468
|
|
|
8,647
|
|
|
414,821
|
|
|||
Residential real estate
|
347,336
|
|
|
12,532
|
|
|
334,804
|
|
|||
Consumer
|
161,918
|
|
|
98
|
|
|
161,820
|
|
|||
Guaranteed student loans
|
—
|
|
|
—
|
|
|
—
|
|
|||
Deferred loan fees and related costs
|
(724
|
)
|
|
$
|
—
|
|
|
$
|
(724
|
)
|
|
Total originated and other purchased loans
|
1,538,952
|
|
|
65,874
|
|
|
1,473,078
|
|
|||
Total loans
|
$
|
1,538,952
|
|
|
$
|
65,874
|
|
|
$
|
1,473,078
|
|
|
September 30, 2016
|
||||||||||
(in thousands)
|
Recorded Investment
|
|
Unpaid Principal Balance
|
|
Related Allowance
|
||||||
With no related allowance recorded:
|
|
|
|
|
|
||||||
Purchased credit-impaired loans
|
|
|
|
|
|
||||||
Commercial & Industrial
|
$
|
875
|
|
|
$
|
1,270
|
|
|
$
|
—
|
|
Construction
|
1,824
|
|
|
2,823
|
|
|
—
|
|
|||
Commercial real estate
|
1,607
|
|
|
2,209
|
|
|
—
|
|
|||
Residential real estate
|
2,326
|
|
|
3,326
|
|
|
—
|
|
|||
Consumer
|
16
|
|
|
46
|
|
|
—
|
|
|||
Originated and other purchased loans
|
|
|
|
|
|
||||||
Commercial & Industrial
|
12,313
|
|
|
13,344
|
|
|
—
|
|
|||
Construction
|
5,359
|
|
|
5,669
|
|
|
—
|
|
|||
Commercial real estate
|
7,716
|
|
|
9,798
|
|
|
—
|
|
|||
Residential real estate
|
5,848
|
|
|
7,100
|
|
|
—
|
|
|||
Consumer
|
8
|
|
|
29
|
|
|
—
|
|
|||
With an allowance recorded:
|
|
|
|
|
|
||||||
Purchased credit-impaired loans
|
|
|
|
|
|
||||||
Commercial & Industrial
|
—
|
|
|
—
|
|
|
—
|
|
|||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|||
Commercial real estate
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential real estate
|
—
|
|
|
—
|
|
|
—
|
|
|||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|||
Originated and other purchased loans
|
|
|
|
|
|
||||||
Commercial & Industrial
|
16,334
|
|
|
16,627
|
|
|
7,723
|
|
|||
Construction
|
10,290
|
|
|
11,943
|
|
|
7,163
|
|
|||
Commercial real estate
|
2,217
|
|
|
2,217
|
|
|
899
|
|
|||
Residential real estate
|
5,080
|
|
|
5,080
|
|
|
1,111
|
|
|||
Consumer
|
1,392
|
|
|
1,392
|
|
|
1,182
|
|
|||
Total loans individually evaluated for impairment
|
$
|
73,205
|
|
|
$
|
82,873
|
|
|
$
|
18,078
|
|
|
December 31, 2015
|
||||||||||
(in thousands)
|
Recorded Investment
|
|
Unpaid Principal Balance
|
|
Related Allowance
|
||||||
With no related allowance recorded:
|
|
|
|
|
|
||||||
Purchased credit-impaired loans
|
|
|
|
|
|
||||||
Commercial & Industrial
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|||
Commercial real estate
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential real estate
|
—
|
|
|
—
|
|
|
—
|
|
|||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|||
Originated and other purchased loans
|
|
|
|
|
|
||||||
Commercial & Industrial
|
14,044
|
|
|
14,924
|
|
|
—
|
|
|||
Construction
|
14,913
|
|
|
16,485
|
|
|
—
|
|
|||
Commercial real estate
|
2,879
|
|
|
3,048
|
|
|
—
|
|
|||
Residential real estate
|
5,125
|
|
|
5,985
|
|
|
—
|
|
|||
Consumer
|
10
|
|
|
31
|
|
|
—
|
|
|||
With an allowance recorded:
|
|
|
|
|
|
||||||
Purchased credit-impaired loans
|
|
|
|
|
|
||||||
Commercial & Industrial
|
—
|
|
|
—
|
|
|
—
|
|
|||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|||
Commercial real estate
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential real estate
|
—
|
|
|
—
|
|
|
—
|
|
|||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|||
Originated and other purchased loans
|
|
|
|
|
|
||||||
Commercial & Industrial
|
9,461
|
|
|
9,461
|
|
|
1,593
|
|
|||
Construction
|
6,179
|
|
|
6,179
|
|
|
951
|
|
|||
Commercial real estate
|
5,768
|
|
|
7,268
|
|
|
640
|
|
|||
Residential real estate
|
7,407
|
|
|
7,563
|
|
|
2,175
|
|
|||
Consumer
|
88
|
|
|
88
|
|
|
88
|
|
|||
Total loans individually evaluated for impairment
|
$
|
65,874
|
|
|
$
|
71,032
|
|
|
$
|
5,447
|
|
|
Three Months Ended September 30,
|
||||||||||||||
|
2016
|
|
2015
|
||||||||||||
(in thousands)
|
Average Recorded Investment
|
|
Interest Income Recognized
|
|
Average Recorded Investment
|
|
Interest Income Recognized
|
||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
||||||||
Purchased credit-impaired loans
|
|
|
|
|
|
|
|
||||||||
Commercial & Industrial
|
$
|
878
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Construction
|
1,826
|
|
|
6
|
|
|
—
|
|
|
—
|
|
||||
Commercial real estate
|
1,608
|
|
|
12
|
|
|
—
|
|
|
—
|
|
||||
Residential real estate
|
2,368
|
|
|
6
|
|
|
—
|
|
|
—
|
|
||||
Consumer
|
17
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Originated and other purchased loans
|
|
|
|
|
|
|
|
||||||||
Commercial & Industrial
|
12,664
|
|
|
74
|
|
|
16,415
|
|
|
92
|
|
||||
Construction
|
5,395
|
|
|
48
|
|
|
15,528
|
|
|
—
|
|
||||
Commercial real estate
|
8,007
|
|
|
68
|
|
|
5,637
|
|
|
8
|
|
||||
Residential real estate
|
6,396
|
|
|
1
|
|
|
5,543
|
|
|
6
|
|
||||
Consumer
|
14
|
|
|
—
|
|
|
70
|
|
|
—
|
|
||||
With an allowance recorded:
|
|
|
|
|
|
|
|
||||||||
Purchased credit-impaired loans
|
|
|
|
|
|
|
|
||||||||
Commercial & Industrial
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Commercial real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Residential real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Originated and other purchased loans
|
|
|
|
|
|
|
|
||||||||
Commercial & Industrial
|
16,391
|
|
|
51
|
|
|
5,868
|
|
|
49
|
|
||||
Construction
|
10,297
|
|
|
3
|
|
|
5,577
|
|
|
50
|
|
||||
Commercial real estate
|
2,229
|
|
|
3
|
|
|
3,613
|
|
|
48
|
|
||||
Residential real estate
|
5,148
|
|
|
43
|
|
|
7,707
|
|
|
49
|
|
||||
Consumer
|
1,393
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Total loans individually evaluated for impairment
|
$
|
74,631
|
|
|
$
|
316
|
|
|
$
|
65,959
|
|
|
$
|
302
|
|
|
Nine Months Ended September 30,
|
||||||||||||||
|
2016
|
|
2015
|
||||||||||||
(in thousands)
|
Average Recorded Investment
|
|
Interest Income Recognized
|
|
Average Recorded Investment
|
|
Interest Income Recognized
|
||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
||||||||
Purchased credit-impaired loans
|
|
|
|
|
|
|
|
||||||||
Commercial & Industrial
|
$
|
878
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Construction
|
1,826
|
|
|
6
|
|
|
—
|
|
|
—
|
|
||||
Commercial real estate
|
1,608
|
|
|
12
|
|
|
—
|
|
|
—
|
|
||||
Residential real estate
|
2,368
|
|
|
6
|
|
|
—
|
|
|
—
|
|
||||
Consumer
|
17
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Originated and other purchased loans
|
|
|
|
|
|
|
|
||||||||
Commercial & Industrial
|
12,839
|
|
|
224
|
|
|
16,520
|
|
|
276
|
|
||||
Construction
|
5,478
|
|
|
144
|
|
|
15,611
|
|
|
—
|
|
||||
Commercial real estate
|
8,101
|
|
|
204
|
|
|
5,669
|
|
|
16
|
|
||||
Residential real estate
|
6,466
|
|
|
4
|
|
|
5,616
|
|
|
18
|
|
||||
Consumer
|
14
|
|
|
—
|
|
|
70
|
|
|
—
|
|
||||
With an allowance recorded:
|
|
|
|
|
|
|
|
||||||||
Purchased credit-impaired loans
|
|
|
|
|
|
|
|
||||||||
Commercial & Industrial
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Commercial real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Residential real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Originated and other purchased loans
|
|
|
|
|
|
|
|
||||||||
Commercial & Industrial
|
16,721
|
|
|
153
|
|
|
5,926
|
|
|
145
|
|
||||
Construction
|
14,485
|
|
|
7
|
|
|
5,628
|
|
|
148
|
|
||||
Commercial real estate
|
2,316
|
|
|
9
|
|
|
3,633
|
|
|
141
|
|
||||
Residential real estate
|
5,345
|
|
|
131
|
|
|
7,964
|
|
|
157
|
|
||||
Consumer
|
1,412
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Total loans individually evaluated for impairment
|
$
|
79,874
|
|
|
$
|
901
|
|
|
$
|
66,638
|
|
|
$
|
901
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
(in thousands)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Balance at beginning of period
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Additions
|
11,584
|
|
|
—
|
|
|
11,584
|
|
|
—
|
|
||||
Accretion (1)
|
(1,509
|
)
|
|
—
|
|
|
(1,509
|
)
|
|
—
|
|
||||
Balance at end of period
|
$
|
10,075
|
|
|
$
|
—
|
|
|
$
|
10,075
|
|
|
$
|
—
|
|
_______________________
|
|
|
|
|
|
|
|
||||||||
(1) Accretion amounts are reported in interest income.
|
|
|
|
|
(in thousands)
|
September 30, 2016
|
|
December 31, 2015
|
||||
Purchased credit-impaired loans:
|
|
|
|
||||
Commercial & Industrial
|
$
|
674
|
|
|
$
|
—
|
|
Construction
|
1,090
|
|
|
—
|
|
||
Commercial real estate
|
716
|
|
|
—
|
|
||
Residential real estate
|
1,872
|
|
|
—
|
|
||
Consumer
|
—
|
|
|
—
|
|
||
Total purchased credit-impaired loans
|
4,352
|
|
|
—
|
|
||
Originated and other purchased loans:
|
|
|
|
||||
Commercial & Industrial
|
16,444
|
|
|
10,118
|
|
||
Construction
|
10,445
|
|
|
15,729
|
|
||
Commercial real estate
|
4,396
|
|
|
3,308
|
|
||
Residential real estate
|
6,413
|
|
|
6,259
|
|
||
Consumer
|
1,390
|
|
|
98
|
|
||
Total originated and other purchased loans
|
39,088
|
|
|
35,512
|
|
||
Total nonaccrual loans
|
43,440
|
|
|
35,512
|
|
||
Other real estate owned
|
6,293
|
|
|
12,409
|
|
||
Total nonperforming assets
|
$
|
49,733
|
|
|
$
|
47,921
|
|
(in thousands)
|
September 30, 2016
|
|
December 31, 2015
|
||||
Nonaccrual loans
|
$
|
43,440
|
|
|
$
|
35,512
|
|
TDRs on accrual
|
27,469
|
|
|
28,939
|
|
||
Impaired loans on accrual
|
2,296
|
|
|
1,423
|
|
||
Total impaired loans
|
$
|
73,205
|
|
|
$
|
65,874
|
|
(in thousands)
|
Commercial & Industrial
|
|
Construction
|
|
Commercial real estate
|
|
Residential real estate
|
|
Consumer
|
|
Total
|
||||||||||||
Balance at December 31, 2015
|
$
|
10,118
|
|
|
$
|
15,729
|
|
|
$
|
3,308
|
|
|
$
|
6,259
|
|
|
$
|
98
|
|
|
$
|
35,512
|
|
Transfers in
|
11,776
|
|
|
1,762
|
|
|
3,301
|
|
|
6,337
|
|
|
1,552
|
|
|
24,728
|
|
||||||
Transfers to other real estate owned
|
(623
|
)
|
|
(3,330
|
)
|
|
(172
|
)
|
|
(724
|
)
|
|
—
|
|
|
(4,849
|
)
|
||||||
Charge-offs
|
(1,160
|
)
|
|
(635
|
)
|
|
(663
|
)
|
|
(2,234
|
)
|
|
(151
|
)
|
|
(4,843
|
)
|
||||||
Payments
|
(2,956
|
)
|
|
(1,991
|
)
|
|
(441
|
)
|
|
(825
|
)
|
|
(109
|
)
|
|
(6,322
|
)
|
||||||
Return to accrual
|
(48
|
)
|
|
—
|
|
|
(221
|
)
|
|
(517
|
)
|
|
—
|
|
|
(786
|
)
|
||||||
Loan type reclassification
|
11
|
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
—
|
|
||||||
Balance at September 30, 2016
|
$
|
17,118
|
|
|
$
|
11,535
|
|
|
$
|
5,112
|
|
|
$
|
8,285
|
|
|
$
|
1,390
|
|
|
$
|
43,440
|
|
|
September 30, 2016
|
||||||||||||||||||
|
|
|
30-89 days
|
|
90+ days
|
|
Total
|
|
Total
|
||||||||||
(in thousands)
|
Current
|
|
Past Due
|
|
Past Due
|
|
Past Due
|
|
Loans
|
||||||||||
Purchased credit-impaired loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial & Industrial
|
$
|
308
|
|
|
$
|
327
|
|
|
$
|
240
|
|
|
$
|
567
|
|
|
$
|
875
|
|
Construction
|
1,824
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,824
|
|
|||||
Commercial real estate
|
1,258
|
|
|
75
|
|
|
274
|
|
|
349
|
|
|
1,607
|
|
|||||
Residential real estate
|
1,452
|
|
|
363
|
|
|
511
|
|
|
874
|
|
|
2,326
|
|
|||||
Consumer
|
16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|||||
Total purchased credit-impaired loans
|
4,858
|
|
|
765
|
|
|
1,025
|
|
|
1,790
|
|
|
6,648
|
|
|||||
Originated and other purchased loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial & Industrial
|
906,048
|
|
|
13,184
|
|
|
3,491
|
|
|
16,675
|
|
|
922,723
|
|
|||||
Construction
|
227,233
|
|
|
74
|
|
|
10,214
|
|
|
10,288
|
|
|
237,521
|
|
|||||
Commercial real estate
|
605,317
|
|
|
75
|
|
|
2,188
|
|
|
2,263
|
|
|
607,580
|
|
|||||
Residential real estate
|
409,531
|
|
|
3,839
|
|
|
2,470
|
|
|
6,309
|
|
|
415,840
|
|
|||||
Consumer
|
233,311
|
|
|
11
|
|
|
9
|
|
|
20
|
|
|
233,331
|
|
|||||
Guaranteed student loans
|
34,473
|
|
|
4,095
|
|
|
8,114
|
|
|
12,209
|
|
|
46,682
|
|
|||||
Deferred loan fees and related costs
|
707
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
707
|
|
|||||
Total originated and other purchased loans
|
2,416,620
|
|
|
21,278
|
|
|
26,486
|
|
|
47,764
|
|
|
2,464,384
|
|
|||||
Total loans
|
$
|
2,421,478
|
|
|
$
|
22,043
|
|
|
$
|
27,511
|
|
|
$
|
49,554
|
|
|
$
|
2,471,032
|
|
|
December 31, 2015
|
||||||||||||||||||
|
|
|
30-89 days
|
|
90+ days
|
|
Total
|
|
Total
|
||||||||||
(in thousands)
|
Current
|
|
Past Due
|
|
Past Due
|
|
Past Due
|
|
Loans
|
||||||||||
Purchased credit-impaired loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial & Industrial
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total purchased credit-impaired loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Originated and other purchased loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial & Industrial
|
451,776
|
|
|
2,699
|
|
|
11,271
|
|
|
13,970
|
|
|
465,746
|
|
|||||
Construction
|
137,147
|
|
|
3,514
|
|
|
547
|
|
|
4,061
|
|
|
141,208
|
|
|||||
Commercial real estate
|
422,691
|
|
|
686
|
|
|
91
|
|
|
777
|
|
|
423,468
|
|
|||||
Residential real estate
|
329,338
|
|
|
2,485
|
|
|
15,513
|
|
|
17,998
|
|
|
347,336
|
|
|||||
Consumer
|
161,909
|
|
|
6
|
|
|
3
|
|
|
9
|
|
|
161,918
|
|
|||||
Guaranteed student loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Deferred loan fees and related costs
|
(724
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(724
|
)
|
|||||
Total originated and other purchased loans
|
1,502,137
|
|
|
9,390
|
|
|
27,425
|
|
|
36,815
|
|
|
1,538,952
|
|
|||||
Total loans
|
$
|
1,502,137
|
|
|
$
|
9,390
|
|
|
$
|
27,425
|
|
|
$
|
36,815
|
|
|
$
|
1,538,952
|
|
|
September 30, 2016
|
||||||||||||||
|
|
|
Special
Mention |
|
|
|
|
||||||||
(in thousands)
|
Pass
|
|
|
Substandard
|
|
Total
|
|||||||||
Purchased credit-impaired loans:
|
|
|
|
|
|
|
|
||||||||
Commercial & Industrial
|
$
|
—
|
|
|
$
|
201
|
|
|
$
|
674
|
|
|
$
|
875
|
|
Construction
|
—
|
|
|
—
|
|
|
1,824
|
|
|
1,824
|
|
||||
Commercial real estate
|
—
|
|
|
890
|
|
|
717
|
|
|
1,607
|
|
||||
Residential real estate
|
—
|
|
|
—
|
|
|
2,326
|
|
|
2,326
|
|
||||
Consumer
|
—
|
|
|
—
|
|
|
16
|
|
|
16
|
|
||||
Total purchased credit-impaired loans
|
—
|
|
|
1,091
|
|
|
5,557
|
|
|
6,648
|
|
||||
Originated and other purchased loans:
|
|
|
|
|
|
|
|
||||||||
Commercial & Industrial
|
894,698
|
|
|
9,873
|
|
|
18,152
|
|
|
922,723
|
|
||||
Construction
|
220,234
|
|
|
6,807
|
|
|
10,480
|
|
|
237,521
|
|
||||
Commercial real estate
|
589,596
|
|
|
5,056
|
|
|
12,928
|
|
|
607,580
|
|
||||
Residential real estate
|
382,159
|
|
|
20,006
|
|
|
13,675
|
|
|
415,840
|
|
||||
Consumer
|
230,468
|
|
|
1,456
|
|
|
1,407
|
|
|
233,331
|
|
||||
Guaranteed student loans
|
46,682
|
|
|
—
|
|
|
—
|
|
|
46,682
|
|
||||
Deferred loan fees and related costs
|
707
|
|
|
—
|
|
|
—
|
|
|
707
|
|
||||
Total originated and other purchased loans
|
2,364,544
|
|
|
43,198
|
|
|
56,642
|
|
|
2,464,384
|
|
||||
Total loans
|
$
|
2,364,544
|
|
|
$
|
44,289
|
|
|
$
|
62,199
|
|
|
$
|
2,471,032
|
|
|
December 31, 2015
|
||||||||||||||
|
|
|
Special
Mention |
|
|
|
|
||||||||
(in thousands)
|
Pass
|
|
|
Substandard
|
|
Total
|
|||||||||
Purchased credit-impaired loans:
|
|
|
|
|
|
|
|
||||||||
Commercial & Industrial
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Commercial real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Residential real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total purchased credit-impaired loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Originated and other purchased loans:
|
|
|
|
|
|
|
|
||||||||
Commercial & Industrial
|
441,376
|
|
|
11,199
|
|
|
13,171
|
|
|
465,746
|
|
||||
Construction
|
118,218
|
|
|
7,260
|
|
|
15,730
|
|
|
141,208
|
|
||||
Commercial real estate
|
404,093
|
|
|
7,632
|
|
|
11,743
|
|
|
423,468
|
|
||||
Residential real estate
|
315,200
|
|
|
18,338
|
|
|
13,798
|
|
|
347,336
|
|
||||
Consumer
|
160,708
|
|
|
1,055
|
|
|
155
|
|
|
161,918
|
|
||||
Guaranteed student loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Deferred loan fees and related costs
|
(724
|
)
|
|
—
|
|
|
—
|
|
|
(724
|
)
|
||||
Total originated and other purchased loans
|
1,438,871
|
|
|
45,484
|
|
|
54,597
|
|
|
1,538,952
|
|
||||
Total loans
|
$
|
1,438,871
|
|
|
$
|
45,484
|
|
|
$
|
54,597
|
|
|
$
|
1,538,952
|
|
(in thousands except number of contracts)
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||
|
|
|
Recorded
Investment |
|
|
|
Recorded
Investment |
||||||
Troubled Debt Restructurings
|
Number of Contracts
|
|
|
Number of Contracts
|
|
||||||||
Commercial & Industrial
|
12
|
|
|
$
|
13,041
|
|
|
14
|
|
|
$
|
14,253
|
|
Construction
|
5
|
|
|
5,281
|
|
|
4
|
|
|
5,440
|
|
||
Commercial real estate
|
7
|
|
|
5,536
|
|
|
7
|
|
|
5,577
|
|
||
Residential real estate
|
14
|
|
|
5,123
|
|
|
15
|
|
|
5,483
|
|
||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Total
|
38
|
|
|
$
|
28,981
|
|
|
40
|
|
|
$
|
30,753
|
|
(in thousands)
|
Accruing
|
|
Nonaccruing
|
|
Total
|
||||||
Balance at December 31, 2015
|
$
|
28,939
|
|
|
$
|
1,814
|
|
|
$
|
30,753
|
|
Charge-offs
|
—
|
|
|
—
|
|
|
—
|
|
|||
Payments
|
(1,696
|
)
|
|
(685
|
)
|
|
(2,381
|
)
|
|||
New TDR designation
|
—
|
|
|
609
|
|
|
609
|
|
|||
Release TDR designation
|
—
|
|
|
—
|
|
|
—
|
|
|||
Transfer
|
226
|
|
|
(226
|
)
|
|
—
|
|
|||
Balance at September 30, 2016
|
$
|
27,469
|
|
|
$
|
1,512
|
|
|
$
|
28,981
|
|
(in thousands)
|
September 30, 2016
|
|
December 31, 2015
|
||||
Performing TDRs:
|
|
|
|
||||
Commercial & Industrial
|
$
|
12,203
|
|
|
$
|
13,387
|
|
Construction
|
5,205
|
|
|
5,363
|
|
||
Commercial real estate
|
5,536
|
|
|
5,339
|
|
||
Residential real estate
|
4,525
|
|
|
4,850
|
|
||
Consumer
|
—
|
|
|
—
|
|
||
Total performing TDRs
|
27,469
|
|
|
28,939
|
|
||
Nonperforming TDRs:
|
|
|
|
||||
Commercial & Industrial
|
838
|
|
|
866
|
|
||
Construction
|
76
|
|
|
77
|
|
||
Commercial real estate
|
—
|
|
|
238
|
|
||
Residential real estate
|
598
|
|
|
633
|
|
||
Consumer
|
—
|
|
|
—
|
|
||
Total nonperforming TDRs
|
1,512
|
|
|
1,814
|
|
||
Total TDRs
|
$
|
28,981
|
|
|
$
|
30,753
|
|
|
Three Months Ended September 30, 2016
|
||||||||||||||||||||
(in thousands except number of contracts)
|
Rate
|
|
Structure
|
||||||||||||||||||
|
Number of Contracts
|
|
Pre-
Modification Outstanding Recorded Investment |
|
Post-
Modification Outstanding Recorded Investment |
|
Number of Contracts
|
|
Pre-
Modification Outstanding Recorded Investment |
|
Post-
Modification Outstanding Recorded Investment |
||||||||||
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
||||||||||||||||
Troubled Debt Restructurings
|
|
|
|
|
|
||||||||||||||||
Commercial & Industrial
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
4
|
|
|
4
|
|
||||
Commercial real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Residential real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
84
|
|
|
84
|
|
||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
2
|
|
|
$
|
88
|
|
|
$
|
88
|
|
|
Three Months Ended September 30, 2015
|
||||||||||||||||||||
(in thousands except number of contracts)
|
Rate
|
|
Structure
|
||||||||||||||||||
|
Number of Contracts
|
|
Pre-
Modification Outstanding Recorded Investment |
|
Post-
Modification Outstanding Recorded Investment |
|
Number of Contracts
|
|
Pre-
Modification Outstanding Recorded Investment |
|
Post-
Modification Outstanding Recorded Investment |
||||||||||
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
||||||||||||||||
Troubled Debt Restructurings
|
|
|
|
|
|
||||||||||||||||
Commercial & Industrial
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Commercial real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Residential real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Nine Months Ended September 30, 2016
|
||||||||||||||||||||
(in thousands except number of contracts)
|
Rate
|
|
Structure
|
||||||||||||||||||
|
Number of Contracts
|
|
Pre-
Modification Outstanding Recorded Investment |
|
Post-
Modification Outstanding Recorded Investment |
|
Number of Contracts
|
|
Pre-
Modification Outstanding Recorded Investment |
|
Post-
Modification Outstanding Recorded Investment |
||||||||||
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
||||||||||||||||
Troubled Debt Restructurings
|
|
|
|
|
|
||||||||||||||||
Commercial & Industrial
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
1
|
|
|
$
|
620
|
|
|
$
|
521
|
|
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
4
|
|
|
4
|
|
||||
Commercial real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Residential real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
84
|
|
|
84
|
|
||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
3
|
|
|
$
|
708
|
|
|
$
|
609
|
|
|
Nine Months Ended September 30, 2015
|
||||||||||||||||||||
(in thousands except number of contracts)
|
Rate
|
|
Structure
|
||||||||||||||||||
|
Number of Contracts
|
|
Pre-
Modification Outstanding Recorded Investment |
|
Post-
Modification Outstanding Recorded Investment |
|
Number of Contracts
|
|
Pre-
Modification Outstanding Recorded Investment |
|
Post-
Modification Outstanding Recorded Investment |
||||||||||
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
||||||||||||||||
Troubled Debt Restructurings
|
|
|
|
|
|
||||||||||||||||
Commercial & Industrial
|
2
|
|
|
$
|
391
|
|
|
$
|
391
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Commercial real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
4,606
|
|
|
4,031
|
|
||||
Residential real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
2
|
|
|
$
|
391
|
|
|
$
|
391
|
|
|
3
|
|
|
$
|
4,606
|
|
|
$
|
4,031
|
|
(in thousands)
|
Amount
|
||
Balance at December 31, 2015
|
$
|
12,409
|
|
Transfers in (via foreclosure)
|
5,737
|
|
|
Acquired in the Merger
|
737
|
|
|
Sales
|
(12,478
|
)
|
|
Gain on sales
|
1,208
|
|
|
Impairments
|
(1,320
|
)
|
|
Balance at September 30, 2016
|
$
|
6,293
|
|
(in thousands)
|
September 30, 2016
|
|
September 30, 2015
|
||||
Balance at beginning of year
|
$
|
9,875
|
|
|
$
|
7,553
|
|
Impairments
|
1,320
|
|
|
1,524
|
|
||
Charge-offs
|
(8,137
|
)
|
|
(1,464
|
)
|
||
Balance at end of period
|
$
|
3,058
|
|
|
$
|
7,613
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
(in thousands)
|
September 30, 2016
|
|
September 30, 2015
|
|
September 30, 2016
|
|
September 30, 2015
|
||||||||
(Gain) on sales
|
$
|
(52
|
)
|
|
$
|
(34
|
)
|
|
$
|
(1,208
|
)
|
|
$
|
(53
|
)
|
Impairments
|
737
|
|
|
259
|
|
|
1,320
|
|
|
1,524
|
|
||||
Operating expenses
|
104
|
|
|
403
|
|
|
276
|
|
|
835
|
|
||||
Total
|
$
|
789
|
|
|
$
|
628
|
|
|
$
|
388
|
|
|
$
|
2,306
|
|
(in thousands)
|
September 30, 2016
|
|
December 31, 2015
|
||||
Amortizable core deposit intangibles:
|
|
|
|
||||
Gross amount
|
$
|
4,006
|
|
|
$
|
4,756
|
|
Accumulated amortization
|
(88
|
)
|
|
(4,508
|
)
|
||
Net core deposit intangibles
|
3,918
|
|
|
248
|
|
||
Goodwill
|
26,225
|
|
|
—
|
|
||
Total goodwill and other intangible assets, net
|
$
|
30,143
|
|
|
$
|
248
|
|
|
Options
Outstanding |
|
Weighted
Average Exercise Price |
|
Aggregate
Intrinsic Value |
|
Weighted-Average Contractual Term in Years
|
|||||
|
|
|
|
|||||||||
|
|
|
(in thousands)
|
|
||||||||
Balance at December 31, 2015
|
3,566,894
|
|
|
$
|
2.40
|
|
|
$
|
760
|
|
|
5.68
|
Issued at the Merger
|
3,203,429
|
|
|
1.46
|
|
|
|
|
|
|
||
Granted
|
2,074,703
|
|
|
2.05
|
|
|
|
|
|
|
||
Forfeited and canceled
|
(805,607
|
)
|
|
1.61
|
|
|
|
|
|
|
||
Exercised
|
(26,400
|
)
|
|
0.99
|
|
|
|
|
|
|
||
Expired
|
(79,304
|
)
|
|
10.36
|
|
|
|
|
|
|
||
Balance at September 30, 2016
|
7,933,715
|
|
|
$
|
1.95
|
|
|
$
|
4,564
|
|
|
5.14
|
Options exercisable at
|
|
|
|
|
|
|
|
|||||
September 30, 2016
|
4,482,418
|
|
|
$
|
2.00
|
|
|
$
|
3,089
|
|
|
4.48
|
|
Number
of Unvested Awards |
|
Weighted Average
Grant Date Fair Value |
|||
|
|
|||||
|
|
|||||
Balance at December 31, 2015
|
954,034
|
|
|
$
|
1.66
|
|
Granted
|
871,370
|
|
|
2.05
|
|
|
Vested
|
(811,050
|
)
|
|
1.74
|
|
|
Forfeited and canceled
|
(142,984
|
)
|
|
1.61
|
|
|
Balance at September 30, 2016
|
871,370
|
|
|
$
|
2.05
|
|
(in thousands)
|
September 30, 2016
|
|
September 30, 2015
|
||||
Expense recognized:
|
|
|
|
||||
Related to stock options
|
$
|
321
|
|
|
$
|
903
|
|
Related to restricted stock units
|
1,345
|
|
|
525
|
|
|
For the Nine Months Ended
|
||||
|
September 30, 2016
|
||||
(in thousands)
|
Tax
|
Rate
|
|||
Effective tax rate from continuing operations:
|
|
|
|||
Income tax benefit at statutory rate
|
$
|
(3,798
|
)
|
(35.00
|
)%
|
Transaction-related expenses
|
1,311
|
|
12.08
|
%
|
|
Tax-exempt income
|
(406
|
)
|
(3.74
|
)%
|
|
Reversal of valuation allowance
|
(59,950
|
)
|
(552.41
|
)%
|
|
Other
|
49
|
|
0.45
|
%
|
|
Income tax benefit from continuing operations
|
$
|
(62,794
|
)
|
(578.62
|
)%
|
|
|
|
Gross
|
Net Amounts
|
Gross Amounts
|
|
|||||||||||||
|
|
|
Amounts
|
of Assets
|
Not Offset in the
|
|
|||||||||||||
|
|
Gross
|
Offset in
|
Presented
|
Consolidated Balance Sheets
|
|
|||||||||||||
|
|
Amounts
|
the
|
in the
|
|
|
|
||||||||||||
|
|
of
|
Consolidated
|
Consolidated
|
|
Cash and Security
|
|
||||||||||||
|
|
Recognized
|
Balance
|
Balance
|
Financial
|
Collateral
|
Net
|
||||||||||||
(in thousands)
|
|
Assets
|
Sheets
|
Sheets
|
Instruments
|
Received
|
Amount
|
||||||||||||
Derivative assets:
|
|
|
|
|
|
|
|
||||||||||||
September 30, 2016
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swap agreements
|
|
$
|
3,376
|
|
$
|
—
|
|
$
|
3,376
|
|
$
|
—
|
|
$
|
—
|
|
$
|
3,376
|
|
December 31, 2015
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swap agreements
|
|
1,219
|
|
—
|
|
1,219
|
|
—
|
|
—
|
|
1,219
|
|
|
|
|
Gross
|
Net Amounts
|
Gross Amounts
|
|
|||||||||||||
|
|
|
Amounts
|
of Liabilities
|
Not Offset in the
|
|
|||||||||||||
|
|
Gross
|
Offset in
|
Presented
|
Consolidated Balance Sheets
|
|
|||||||||||||
|
|
Amounts
|
the
|
in the
|
|
|
|
||||||||||||
|
|
of
|
Consolidated
|
Consolidated
|
|
Cash and Security
|
|
||||||||||||
|
|
Recognized
|
Balance
|
Balance
|
Financial
|
Collateral
|
Net
|
||||||||||||
(in thousands)
|
|
Liabilities
|
Sheets
|
Sheets
|
Instruments
|
Pledged
|
Amount
|
||||||||||||
Derivative liabilities:
|
|
|
|
|
|
|
|
||||||||||||
September 30, 2016
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swap agreements
|
|
$
|
3,448
|
|
$
|
—
|
|
$
|
3,448
|
|
$
|
—
|
|
$
|
3,409
|
|
$
|
39
|
|
December 31, 2015
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swap agreements
|
|
1,219
|
|
—
|
|
1,219
|
|
—
|
|
1,219
|
|
—
|
|
(in thousands)
|
September 30, 2016
|
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||
Assets
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|||||||||
Investment securities available for sale
|
|
|
|
|
|
|
|
||||||||
Corporate bonds
|
$
|
987
|
|
|
$
|
—
|
|
|
$
|
987
|
|
|
$
|
—
|
|
Mortgage-backed securities -
|
|
|
|
|
|
|
|
||||||||
Agency
|
134,324
|
|
|
—
|
|
|
134,324
|
|
|
—
|
|
||||
Municipals
|
86,911
|
|
|
—
|
|
|
86,911
|
|
|
—
|
|
||||
Commercial mortgage-backed securities
|
67,615
|
|
|
—
|
|
|
67,615
|
|
|
—
|
|
||||
Collateralized mortgage obligations
|
21,870
|
|
|
—
|
|
|
21,870
|
|
|
—
|
|
||||
Asset-backed securities
|
14,759
|
|
|
—
|
|
|
14,759
|
|
|
—
|
|
||||
Equity securities
|
1,679
|
|
|
1,580
|
|
|
—
|
|
|
99
|
|
||||
Total investment securities
|
|
|
|
|
|
|
|
||||||||
available for sale
|
328,145
|
|
|
1,580
|
|
|
326,466
|
|
|
99
|
|
||||
Derivative loan commitments
|
1,490
|
|
|
—
|
|
|
—
|
|
|
1,490
|
|
||||
Interest rate swaps
|
3,376
|
|
|
—
|
|
|
3,376
|
|
|
—
|
|
||||
Other assets
|
$
|
1,807
|
|
|
$
|
1,807
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Total assets
|
$
|
334,818
|
|
|
$
|
3,387
|
|
|
$
|
329,842
|
|
|
$
|
1,589
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
$
|
3,448
|
|
|
$
|
—
|
|
|
$
|
3,448
|
|
|
$
|
—
|
|
Total liabilities
|
$
|
3,448
|
|
|
$
|
—
|
|
|
$
|
3,448
|
|
|
$
|
—
|
|
(in thousands)
|
December 31, 2015
|
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||
Assets
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|||||||||
Investment securities available for sale
|
|
|
|
|
|
|
|
||||||||
U.S. agency securities
|
$
|
13,072
|
|
|
$
|
—
|
|
|
$
|
13,072
|
|
|
$
|
—
|
|
Corporate bonds
|
11,190
|
|
|
—
|
|
|
11,190
|
|
|
—
|
|
||||
Mortgage-backed securities -
|
|
|
|
|
|
|
|
||||||||
Agency
|
149,199
|
|
|
—
|
|
|
149,199
|
|
|
—
|
|
||||
Asset-backed securities
|
23,292
|
|
|
—
|
|
|
23,292
|
|
|
—
|
|
||||
Equity securities
|
1,421
|
|
|
1,322
|
|
|
—
|
|
|
99
|
|
||||
Total investment securities
|
|
|
|
|
|
|
|
||||||||
available for sale
|
198,174
|
|
|
1,322
|
|
|
196,753
|
|
|
99
|
|
||||
Derivative loan commitments
|
1,020
|
|
|
—
|
|
|
—
|
|
|
1,020
|
|
||||
Interest rate swaps
|
1,219
|
|
|
—
|
|
|
1,219
|
|
|
—
|
|
||||
Total assets
|
$
|
200,413
|
|
|
$
|
1,322
|
|
|
$
|
197,972
|
|
|
$
|
1,119
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
$
|
1,219
|
|
|
$
|
—
|
|
|
$
|
1,219
|
|
|
$
|
—
|
|
Total liabilities
|
$
|
1,219
|
|
|
$
|
—
|
|
|
$
|
1,219
|
|
|
$
|
—
|
|
|
Activity in Level 3
|
|
Activity in Level 3
|
||||||||||||
|
Fair Value Measurements
|
|
Fair Value Measurements
|
||||||||||||
(in thousands)
|
Nine Months Ended September 30, 2016
|
|
Twelve Months Ended December 31, 2015
|
||||||||||||
|
Investment
Securities Available for Sale |
|
Derivative
Loan Commitments |
|
Investment
Securities Available for Sale |
|
Derivative
Loan Commitments |
||||||||
|
|
|
|
||||||||||||
Description
|
|
|
|
||||||||||||
Beginning of period balance
|
$
|
99
|
|
|
$
|
1,020
|
|
|
$
|
280
|
|
|
$
|
472
|
|
Unrealized gains included in:
|
|
|
|
|
|
|
|
||||||||
Earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Purchases
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Reclassification from level 3 to level 1
|
—
|
|
|
—
|
|
|
(181
|
)
|
|
—
|
|
||||
Issuances
|
—
|
|
|
470
|
|
|
—
|
|
|
799
|
|
||||
Settlements
|
—
|
|
|
—
|
|
|
—
|
|
|
(251
|
)
|
||||
End of period balance
|
$
|
99
|
|
|
$
|
1,490
|
|
|
$
|
99
|
|
|
$
|
1,020
|
|
|
Assets
Measured at Fair Value |
|
Fair Value Measurements at
|
||||||||||||
|
|
September 30, 2016 Using
|
|||||||||||||
(in thousands)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|||||||||
Impaired loans
|
$
|
50,002
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
50,002
|
|
Other real estate owned
|
|
|
|
|
|
|
|
||||||||
and repossessed assets
|
6,293
|
|
|
—
|
|
|
—
|
|
|
6,293
|
|
|
Assets
Measured at Fair Value |
|
Fair Value Measurements at
|
||||||||||||
|
|
December 31, 2015 Using
|
|||||||||||||
(in thousands)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|||||||||
Impaired loans
|
$
|
55,279
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
55,279
|
|
Other real estate owned
|
|
|
|
|
|
|
|
||||||||
and repossessed assets
|
12,409
|
|
|
—
|
|
|
—
|
|
|
12,409
|
|
|
|
|
|
|
|
||
(in thousands except for percentages)
|
|
|
Significant Unobservable
|
|
Significant Unobservable
|
||
|
Fair Value at
|
|
Inputs by
|
|
Inputs as of
|
||
|
September 30, 2016
|
|
Valuation Technique
|
|
September 30, 2016
|
||
Derivative loan commitments
|
$
|
1,490
|
|
|
Pull through rate
|
|
89%
|
|
|
|
Percentage of loans that will
|
|
|
||
|
|
|
ultimately close
|
|
|
||
Impaired loans
|
50,002
|
|
|
Appraised value
|
|
10%
|
|
|
|
|
Average discounts to reflect current
|
|
|
||
|
|
|
market conditions, ultimate collectability,
|
|
|
||
|
|
|
and estimated costs to sell
|
|
|
||
Other real estate owned
|
6,293
|
|
|
Appraised value
|
|
10%
|
|
|
|
|
Weighted average discounts to reflect
|
|
|
||
|
|
|
current market conditions, abbreviated
|
|
|
||
|
|
|
holding period and estimated costs to sell
|
|
|
|
September 30, 2016
|
||||||||||||||||||
|
Carrying
Amount |
|
Fair
Value |
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||||
(in thousands)
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||
Financial Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans, net(1)
|
$
|
2,437,302
|
|
|
$
|
2,470,049
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,470,049
|
|
Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
2,586,608
|
|
|
2,588,924
|
|
|
—
|
|
|
2,588,924
|
|
|
—
|
|
|||||
FHLB borrowings
|
197,500
|
|
|
197,500
|
|
|
—
|
|
|
197,500
|
|
|
—
|
|
|||||
Other borrowings
|
38,468
|
|
|
83,100
|
|
|
—
|
|
|
83,100
|
|
|
—
|
|
|
December 31, 2015
|
||||||||||||||||||
|
Carrying
Amount |
|
Fair
Value |
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||||
(in thousands)
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||
Financial Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans, net(1)
|
$
|
1,518,318
|
|
|
$
|
1,525,606
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,525,606
|
|
Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
1,705,145
|
|
|
1,678,886
|
|
|
—
|
|
|
1,678,886
|
|
|
—
|
|
|||||
FHLB borrowings
|
25,000
|
|
|
25,000
|
|
|
—
|
|
|
25,000
|
|
|
—
|
|
|||||
Other borrowings
|
29,689
|
|
|
56,703
|
|
|
—
|
|
|
56,703
|
|
|
—
|
|
(in thousands)
|
September 30, 2016
|
|
December 31, 2015
|
||||
Commercial lines of credit
|
$
|
320,880
|
|
|
$
|
124,834
|
|
Construction
|
112,737
|
|
|
27,758
|
|
||
Commercial real estate
|
43,544
|
|
|
13,004
|
|
||
Residential real estate
|
96,616
|
|
|
82,189
|
|
||
Consumer
|
12,472
|
|
|
7,164
|
|
||
Letters of credit
|
20,821
|
|
|
15,555
|
|
||
Total commitments
|
$
|
607,070
|
|
|
$
|
270,504
|
|
•
|
Our success is largely dependent on attracting and retaining key management team members;
|
•
|
We are not currently paying dividends on our common stock and absent regulatory approval are prevented from doing so. The inability to pay dividends on our common stock may adversely affect the market price of our common stock;
|
•
|
We incurred significant losses from 2009 to 2012. While we were profitable in 2013, 2014, and 2015 and in the first nine months of 2016 due to the reversal of our valuation allowance on our net deferred tax asset, we can make no assurances that will continue. An inability to improve our profitability could adversely affect our operations and our capital levels, and thus our ability to grow;
|
•
|
Our ability to cease operations and transition our mortgage banking operations to a third-party purchaser could take longer and be more costly than anticipated and could adversely impact our results of operations;
|
•
|
Economic, market, or operational developments may negatively impact our ability to maintain required capital levels or otherwise negatively impact our financial condition;
|
•
|
Our ability to maintain adequate sources of funding and liquidity may be negatively impacted by the economic environment, which may, among other things, impact our ability to grow, satisfy our obligations, and pay dividends, if approved;
|
•
|
Our future success is dependent on our ability to compete effectively in the highly competitive banking industry;
|
•
|
Sales, or the perception that sales could occur, of large amounts of our common stock by our institutional investors may depress our stock price. Sales of a significant portion of our stock by our institutional investors could limit our ability to utilize our deferred tax asset, which also could depress our stock price;
|
•
|
The significant portion of our loan portfolio is in real estate – commercial mortgage, equity line lending, and construction, which may expose us to greater risk of loss;
|
•
|
General economic conditions in the markets in which we do business may decline and may have a material adverse effect on our results of operations and financial condition;
|
•
|
We have had large numbers of problem loans. Although problem loans have declined significantly, there is no assurance that they will continue to do so;
|
•
|
The determination of the appropriate balance of our allowance for loan losses is merely an estimate of the inherent risk of loss in our existing loan portfolio and may prove to be incorrect. If such estimate is proven to be materially incorrect and we are required to increase our allowance for loan losses, our results of operations, financial condition, and the market price of our common stock could be materially adversely affected;
|
•
|
Our profitability will be jeopardized if we are unable to successfully manage interest rate risk;
|
•
|
We may face increasing deposit-pricing pressures, which may, among other things, reduce our ability to grow and our profitability;
|
•
|
We may experience failures or breaches to our systems and network security, including "hacking," "cyber fraud" or "identity theft" resulting in operating losses and/or litigation;
|
•
|
Our operations and customers might be affected by the occurrence of a natural disaster or other catastrophic event in our market area;
|
•
|
Our business, financial condition, and results of operations are highly regulated and could be adversely affected by new or changed regulations and by the manner in which such regulations are applied by regulatory authorities;
|
•
|
Banking regulators have broad enforcement power, and regulations are meant to protect depositors and not investors;
|
•
|
The fiscal, monetary, and regulatory policies of the federal government and its agencies could have a material adverse effect on our results of operations;
|
•
|
Government legislation and regulation may adversely affect our business, financial condition, and results of operations;
|
•
|
The soundness of other financial institutions could adversely affect us;
|
•
|
The merger of legacy Hampton Roads Bankshares, Inc. and legacy Xenith Bankshares, Inc. may be more difficult, costly and/or time consuming than expected and the anticipated benefits and cost savings of the combination may not be realized;
|
•
|
The combined company may not be able to realize our deferred income tax assets.
|
|
Three Months Ended September 30,
|
||
|
2016
|
|
2015
|
Net interest margin (1)
|
3.59%
|
|
3.35%
|
Return on average assets ("ROAA") (2)
|
6.67%
|
|
0.06%
|
Return on average common equity ("ROAE") (3)
|
51.42%
|
|
0.59%
|
Average common equity to average assets (4)
|
12.97%
|
|
10.40%
|
Efficiency ratio (5)
|
126%
|
|
102%
|
|
Nine Months Ended September 30,
|
||
|
2016
|
|
2015
|
Net interest margin (1)
|
3.43%
|
|
3.27%
|
Return on average assets (2)
|
2.24%
|
|
0.29%
|
Return on average common equity (3)
|
16.18%
|
|
2.87%
|
Average common equity to average assets (4)
|
13.84%
|
|
10.09%
|
Efficiency ratio (5)
|
103%
|
|
94%
|
_______________________
|
|
|
|
(1) Net interest margin is net interest income divided by average interest-earning assets. Average interest-earning assets are presented within the average balances, income and expenses, yields and rates table below.
|
|||
(2) ROAA is net income divided by average total assets. Average total assets are presented within the average balances, income and expenses, yields, and rates table below.
|
|||
(3) ROAE is net income divided by average shareholders’ equity (excluding non-controlling interest).
|
|||
(4) Average equity to average assets is average shareholders’ equity (excluding non-controlling interest) divided by average total assets. Average total assets are presented within the average balances, income and expenses, yields and rates table below.
|
|||
(5) Efficiency ratio is noninterest expense divided by the sum of net interest income and noninterest income (continuing operations).
|
•
|
Total assets increased $1.26 billion, or 60.8%, from December 31, 2015 to September 30, 2016, of which $1.09 billion were acquired in the Merger.
|
•
|
Gross loans grew $932.1 million, or 60.6%, from
December 31, 2015
to September 30, 2016, of which $828.9 million were acquired in the Merger. Excluding loans acquired in the Merger, gross loan growth over the nine-month period was $103.2 million, primarily due to growth in our marine financing division, which grew $76.2 million over this period.
|
•
|
Allowance for loan losses increased $10.6 million to $33.7 million at
September 30, 2016
from December 31, 2015, primarily due to specific reserves on several problem loans. Legacy Xenith's allowance for loan losses existing immediately prior to the Merger was not carried over to the combined company as acquired loans are stated at their estimated fair values at the time of the Merger. No additional allowance was recorded for the Legacy Xenith loan portfolio as of September 30, 2016. Charge-offs slightly outpaced recoveries during the first nine months of 2016.
|
•
|
Deposits increased $881.5 million, or 51.7%, from
December 31, 2015
to September 30, 2016. Deposits assumed in the Merger were $956.1 million, and the overall decrease is primarily due to the maturing of a substantial portion of our brokered deposits, which have been replaced in part with Federal Home Loan Bank borrowings, which have increased $172.5 million.
|
•
|
Net interest income was $23.0 million and $52.7 million for the three and nine months ended September 30, 2016, an increase of $7.6 million and $7.3 million from the
three and nine
months ended September 30, 2015, respectively. The increased net interest income from the Merger is reflected only in the three-month period ended September 30, 2016.
|
•
|
Net interest margin was 3.59% and 3.43% for both the three and nine months ended
September 30, 2016
, respectively, and 3.35% and 3.27% for the three and nine months ended
September 30, 2015
, respectively. Net interest margin in the 2016 periods includes accretion of acquired loan discounts further discussed below.
|
•
|
Noninterest income for the
three and nine
months ended
September 30, 2016
was $2.9 million and $8.0 million, respectively, compared to $2.7 million and $7.4 million, respectively, for the same periods in 2015. Noninterest income in 2015 included one-time loan monitoring fees related to the marine financing portfolio, while noninterest income in 2016 reflects lower rental income due to a smaller portfolio of other real estate owned and repossessed assets, offset by the increase from the Merger.
|
•
|
Noninterest expense for the
three and nine
months ended
September 30, 2016
was $32.0 million and $62.4 million, respectively, compared to $18.5 million and $49.9 million, respectively, for the same periods in 2015. Amounts in three and nine-month periods of 2016 included Merger-related costs of $12.9 million and $15.6 million, respectively. Excluding Merger-related costs, noninterest expenses increased $1.1 million for the three months ended September 30, 2016 compared to the same period of 2015, while noninterest expenses excluding Merger-related costs decreased $3.0 million for the nine months ended September 30, 2016 compared to the same period of 2015.
|
•
|
Provision for income taxes in the three and nine months ended September 30, 2016 reflected the release of $60.0 million, which was substantially all of the remaining valuation allowance on the Company's net deferred tax asset. A portion of the valuation allowance was released at December 31, 2015.
|
•
|
At September 30, 2016, the ratio of nonperforming assets to total assets was 1.50% compared to 2.32% as of December 31, 2015, the ratio of nonperforming loans to gross loans was 1.76% compared to 2.31% as of December 31, 2015, and the ratio of the Company’s allowance for loan losses (ALL) to nonaccrual loans was 77.7%. Other real estate owned and repossessed assets was reduced by $6.1 million from December 31, 2015; $738 thousand of other real estate owned was acquired in the Merger.
|
•
|
ROAA was 6.67%, and 2.24% for the three and
nine
months ended
September 30, 2016
, respectively, and 0.06% and 0.29% for the three and nine months ended September 30,
2015
, respectively. ROAE was 51.42% and 16.18% for the three and
nine
months ended
September 30, 2016
, respectively, and 0.59% and 2.87% for the three and nine months ended September 30,
2015
, respectively.
|
•
|
Regulatory capital ratios of the Company and the Bank were considered “well capitalized” under the risk-based capital standards, as of September 30, 2016.
|
|
Three Months Ended September 30,
|
||||||
(in thousands, except per share data)
|
2016
|
|
2015
|
||||
Net income available to Xenith Bankshares, Inc.
|
$
|
47,864
|
|
|
$
|
303
|
|
Earnings per common share, basic and diluted
|
$
|
0.23
|
|
|
$
|
—
|
|
|
Nine Months Ended September 30,
|
||||||
(in thousands, except per share data)
|
2016
|
|
2015
|
||||
Net income available to Xenith Bankshares, Inc.
|
$
|
51,869
|
|
|
$
|
4,364
|
|
Earnings per common share, basic and diluted
|
$
|
0.28
|
|
|
$
|
0.03
|
|
|
Average Balances, Income and Expenses, Yields and Rates
As of and for the Three Months Ended September 30, |
||||||||||||||||||||||||||||||||
|
2016
|
|
2015
|
|
2016 Compared to 2015
|
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
|
|
|
|
|
||||||||||||||||
|
|
|
Interest
|
|
Average
|
|
|
|
Interest
|
|
Average
|
|
Income/
|
|
Variance
|
||||||||||||||||||
(in thousands, except
|
Average
|
|
Income/
|
|
Yield/
|
|
Average
|
|
Income/
|
|
Yield/
|
|
Expense
|
|
Attributable to (2)
|
||||||||||||||||||
average yield/rate data)
|
Balances (1)
|
|
Expense (7) (8) (9)
|
|
Rate
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Variance
|
|
Rate
|
|
Volume
|
||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Loans (3)
|
$
|
2,201,627
|
|
|
$
|
25,639
|
|
|
4.63
|
%
|
|
$
|
1,572,146
|
|
|
$
|
17,296
|
|
|
4.36
|
%
|
|
$
|
8,343
|
|
|
$
|
1,110
|
|
|
$
|
7,233
|
|
Investment securities
|
287,998
|
|
|
1,845
|
|
|
2.55
|
%
|
|
218,561
|
|
|
1,436
|
|
|
2.61
|
%
|
|
409
|
|
|
(32
|
)
|
|
441
|
|
|||||||
Overnight funds sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
and due from FRB
|
79,706
|
|
|
94
|
|
|
0.47
|
%
|
|
56,413
|
|
|
28
|
|
|
0.20
|
%
|
|
66
|
|
|
51
|
|
|
15
|
|
|||||||
Interest-bearing deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
in other banks
|
3,850
|
|
|
2
|
|
|
0.21
|
%
|
|
1,146
|
|
|
—
|
|
|
—%
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|||||||
Total interest-earning assets
|
2,573,181
|
|
|
27,580
|
|
|
4.26
|
%
|
|
1,848,266
|
|
|
18,760
|
|
|
4.03
|
%
|
|
8,820
|
|
|
1,131
|
|
|
7,689
|
|
|||||||
Noninterest-earning assets
|
281,739
|
|
|
|
|
|
|
127,915
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total assets
|
$
|
2,854,920
|
|
|
|
|
|
|
$
|
1,976,181
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities and Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest-bearing demand deposits
|
$
|
980,423
|
|
|
$
|
1,384
|
|
|
0.56
|
%
|
|
$
|
628,307
|
|
|
$
|
661
|
|
|
0.42
|
%
|
|
$
|
723
|
|
|
$
|
275
|
|
|
$
|
448
|
|
Savings deposits
|
78,461
|
|
|
40
|
|
|
0.20
|
%
|
|
60,831
|
|
|
15
|
|
|
0.10
|
%
|
|
25
|
|
|
20
|
|
|
5
|
|
|||||||
Time deposits
|
808,132
|
|
|
2,169
|
|
|
1.07
|
%
|
|
672,285
|
|
|
1,959
|
|
|
1.16
|
%
|
|
210
|
|
|
(157
|
)
|
|
367
|
|
|||||||
Total interest-bearing deposits
|
1,867,016
|
|
|
3,593
|
|
|
0.77
|
%
|
|
1,361,423
|
|
|
2,635
|
|
|
0.77
|
%
|
|
958
|
|
|
138
|
|
|
820
|
|
|||||||
Borrowings
|
164,089
|
|
|
760
|
|
|
1.84
|
%
|
|
72,871
|
|
|
534
|
|
|
2.91
|
%
|
|
226
|
|
|
(249
|
)
|
|
475
|
|
|||||||
Total interest-bearing liabilities
|
2,031,105
|
|
|
4,353
|
|
|
0.85
|
%
|
|
1,434,294
|
|
|
3,169
|
|
|
0.88
|
%
|
|
1,184
|
|
|
(111
|
)
|
|
1,295
|
|
|||||||
Noninterest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Demand deposits
|
431,583
|
|
|
|
|
|
|
|
319,904
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other liabilities
|
21,225
|
|
|
|
|
|
|
|
15,777
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total noninterest-bearing liabilities
|
452,808
|
|
|
|
|
|
|
|
335,681
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total liabilities
|
2,483,913
|
|
|
|
|
|
|
|
1,769,975
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Shareholders' equity
|
371,007
|
|
|
|
|
|
|
|
206,206
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total liabilities and shareholders' equity
|
$
|
2,854,920
|
|
|
|
|
|
|
|
$
|
1,976,181
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income (5)
|
|
|
$
|
23,227
|
|
|
|
|
|
|
|
$
|
15,591
|
|
|
|
|
|
$
|
7,636
|
|
|
$
|
1,242
|
|
|
$
|
6,394
|
|
||||
Net interest spread (4)
|
|
|
|
|
3.41
|
%
|
|
|
|
|
|
3.15
|
%
|
|
|
|
|
|
|
||||||||||||||
Net interest margin (6)
|
|
|
|
|
3.59
|
%
|
|
|
|
|
|
3.35
|
%
|
|
|
|
|
|
|
||||||||||||||
_________________________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
(1) Average balances are computed on a daily basis.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
(2) Change in interest due to both volume and rates has been allocated in proportion to the absolute dollar amounts of the change in each.
|
|||||||||||||||||||||||||||||||||
(3) Nonaccrual loans have been included in the average balances.
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
(4) Net interest spread is the yield on average interest-earning assets less the rate on average interest-bearing liabilities.
|
|
|
|
|
|||||||||||||||||||||||||||||
(5) Net interest income is interest income less interest expense.
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
(6) Net interest margin is net interest income divided by average interest-earning assets.
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
(7) Tax-exempt interest income is stated on a taxable-equivalent basis.
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
(8) Interest income from loans in 2016 includes approximately $1.5 million in accretion related to acquired loans.
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
(9) Interest income from loans includes fees of $174 thousand and $273 thousand for the three months ended September 30, 2016 and 2015, respectively.
|
|
Average Balances, Income and Expenses, Yields and Rates
As of and for the Nine Months Ended September 30, |
||||||||||||||||||||||||||||||||
|
2016
|
|
2015
|
|
2016 Compared to 2015
|
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
|
|
|
|
|
||||||||||||||||
|
|
|
Interest
|
|
Average
|
|
|
|
Interest
|
|
Average
|
|
Income/
|
|
Variance
|
||||||||||||||||||
(in thousands, except
|
Average
|
|
Income/
|
|
Yield/
|
|
Average
|
|
Income/
|
|
Yield/
|
|
Expense
|
|
Attributable to (2)
|
||||||||||||||||||
average yield/rate data)
|
Balances (1)
|
|
Expense (7) (8) (9)
|
|
Rate
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Variance
|
|
Rate
|
|
Volume
|
||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Loans (3)
|
$
|
1,787,481
|
|
|
$
|
59,216
|
|
|
4.43
|
%
|
|
$
|
1,561,655
|
|
|
$
|
50,908
|
|
|
4.36
|
%
|
|
$
|
8,308
|
|
|
$
|
792
|
|
|
$
|
7,516
|
|
Investment securities
|
228,734
|
|
|
4,558
|
|
|
2.66
|
%
|
|
241,435
|
|
|
4,733
|
|
|
2.62
|
%
|
|
(175
|
)
|
|
73
|
|
|
(248
|
)
|
|||||||
Overnight funds sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
and due from FRB
|
56,836
|
|
|
176
|
|
|
0.41
|
%
|
|
78,684
|
|
|
126
|
|
|
0.21
|
%
|
|
50
|
|
|
93
|
|
|
(43
|
)
|
|||||||
Interest-bearing deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
in other banks
|
1,752
|
|
|
3
|
|
|
0.23
|
%
|
|
1,327
|
|
|
—
|
|
|
—%
|
|
|
3
|
|
|
3
|
|
|
—
|
|
|||||||
Total interest-earning assets
|
2,074,803
|
|
|
63,953
|
|
|
4.12
|
%
|
|
1,883,101
|
|
|
55,767
|
|
|
3.96
|
%
|
|
8,186
|
|
|
961
|
|
|
7,225
|
|
|||||||
Noninterest-earning assets
|
241,520
|
|
|
|
|
|
|
132,029
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total assets
|
$
|
2,316,323
|
|
|
|
|
|
|
$
|
2,015,130
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities and Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest-bearing demand deposits
|
$
|
785,757
|
|
|
$
|
3,054
|
|
|
0.52
|
%
|
|
$
|
629,406
|
|
|
$
|
2,005
|
|
|
0.43
|
%
|
|
$
|
1,049
|
|
|
$
|
492
|
|
|
$
|
557
|
|
Savings deposits
|
69,071
|
|
|
81
|
|
|
0.16
|
%
|
|
59,060
|
|
|
39
|
|
|
0.09
|
%
|
|
42
|
|
|
34
|
|
|
8
|
|
|||||||
Time deposits
|
689,925
|
|
|
5,746
|
|
|
1.11
|
%
|
|
679,385
|
|
|
5,753
|
|
|
1.13
|
%
|
|
(7
|
)
|
|
(101
|
)
|
|
94
|
|
|||||||
Total interest-bearing deposits
|
1,544,753
|
|
|
8,881
|
|
|
0.77
|
%
|
|
1,367,851
|
|
|
7,797
|
|
|
0.76
|
%
|
|
1,084
|
|
|
425
|
|
|
659
|
|
|||||||
Borrowings
|
92,603
|
|
|
1,815
|
|
|
2.62
|
%
|
|
131,565
|
|
|
1,949
|
|
|
1.98
|
%
|
|
(134
|
)
|
|
532
|
|
|
(666
|
)
|
|||||||
Total interest-bearing liabilities
|
1,637,356
|
|
|
10,696
|
|
|
0.87
|
%
|
|
1,499,416
|
|
|
9,746
|
|
|
0.87
|
%
|
|
950
|
|
|
957
|
|
|
(7
|
)
|
|||||||
Noninterest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Demand deposits
|
340,305
|
|
|
|
|
|
|
|
293,791
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other liabilities
|
17,609
|
|
|
|
|
|
|
|
17,976
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total noninterest-bearing liabilities
|
357,914
|
|
|
|
|
|
|
|
311,767
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total liabilities
|
1,995,270
|
|
|
|
|
|
|
|
1,811,183
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Shareholders' equity
|
321,053
|
|
|
|
|
|
|
|
203,947
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total liabilities and shareholders' equity
|
$
|
2,316,323
|
|
|
|
|
|
|
|
$
|
2,015,130
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income (5)
|
|
|
$
|
53,257
|
|
|
|
|
|
|
|
$
|
46,021
|
|
|
|
|
|
$
|
7,236
|
|
|
$
|
4
|
|
|
$
|
7,232
|
|
||||
Net interest spread (4)
|
|
|
|
|
3.24
|
%
|
|
|
|
|
|
3.09
|
%
|
|
|
|
|
|
|
||||||||||||||
Net interest margin (6)
|
|
|
|
|
3.43
|
%
|
|
|
|
|
|
3.27
|
%
|
|
|
|
|
|
|
||||||||||||||
_________________________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
(1) Average balances are computed on a daily basis.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
(2) Change in interest due to both volume and rates has been allocated in proportion to the absolute dollar amounts of the change in each.
|
|||||||||||||||||||||||||||||||||
(3) Nonaccrual loans have been included in the average balances.
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
(4) Net interest spread is the yield on average interest-earning assets less the rate on average interest-bearing liabilities.
|
|
|
|
|
|||||||||||||||||||||||||||||
(5) Net interest income is interest income less interest expense.
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
(6) Net interest margin is net interest income divided by average interest-earning assets.
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
(7) Tax-exempt interest income is stated on a taxable-equivalent basis.
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
(8) Interest income from loans in 2016 includes approximately $1.5 million in accretion related to acquired loans.
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
(9) Interest income from loans includes fees of $632 thousand and $831 thousand for the nine months ended September 30, 2016 and 2015, respectively.
|
|
Three Months Ended September 30,
|
|
2016 Compared to 2015
|
|||||||||||
(in thousands, except for percentages)
|
2016
|
|
2015
|
|
$
|
|
%
|
|||||||
Service charges on deposit accounts
|
$
|
1,191
|
|
|
$
|
1,273
|
|
|
$
|
(82
|
)
|
|
(6.4
|
)
|
Earnings from bank-owned life insurance
|
395
|
|
|
302
|
|
|
93
|
|
|
30.8
|
|
|||
Gain on sale of investment securities available for sale
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Visa check card income
|
709
|
|
|
677
|
|
|
32
|
|
|
4.7
|
|
|||
Other
|
575
|
|
|
441
|
|
|
134
|
|
|
30.4
|
|
|||
Total noninterest income
|
$
|
2,870
|
|
|
$
|
2,693
|
|
|
$
|
177
|
|
|
6.6
|
%
|
|
Nine Months Ended September 30,
|
|
2016 Compared to 2015
|
|||||||||||
(in thousands, except for percentages)
|
2016
|
|
2015
|
|
$
|
|
%
|
|||||||
Service charges on deposit accounts
|
$
|
3,447
|
|
|
$
|
3,713
|
|
|
$
|
(266
|
)
|
|
(7.2
|
)
|
Earnings from bank-owned life insurance
|
1,046
|
|
|
956
|
|
|
90
|
|
|
9.4
|
|
|||
Gain on sale of investment securities available for sale
|
15
|
|
|
238
|
|
|
(223
|
)
|
|
(93.7
|
)
|
|||
Visa check card income
|
2,056
|
|
|
1,994
|
|
|
62
|
|
|
3.1
|
|
|||
Other
|
1,430
|
|
|
547
|
|
|
883
|
|
|
161.4
|
|
|||
Total noninterest income
|
$
|
7,994
|
|
|
$
|
7,448
|
|
|
$
|
546
|
|
|
7.3
|
%
|
|
Three Months Ended September 30,
|
|
2016 Compared to 2015
|
|||||||||||
(in thousands, except for percentages)
|
2016
|
|
2015
|
|
$
|
|
%
|
|||||||
Salaries and employee benefits
|
$
|
9,880
|
|
|
$
|
10,100
|
|
|
$
|
(220
|
)
|
|
(2.2
|
)%
|
Professional and consultant fees
|
978
|
|
|
1,459
|
|
|
(481
|
)
|
|
(33.0
|
)
|
|||
Occupancy
|
1,594
|
|
|
1,556
|
|
|
38
|
|
|
2.4
|
|
|||
FDIC insurance
|
679
|
|
|
339
|
|
|
340
|
|
|
100.3
|
|
|||
Data processing
|
1,446
|
|
|
1,466
|
|
|
(20
|
)
|
|
(1.4
|
)
|
|||
Problem loan and repossessed asset costs
|
219
|
|
|
538
|
|
|
(319
|
)
|
|
(59.3
|
)
|
|||
Impairments and gains and losses on sales of other real estate owned and repossessed assets, net
|
685
|
|
|
225
|
|
|
460
|
|
|
204.4
|
|
|||
Impairments and gains and losses on sales of premises and equipment, net
|
42
|
|
|
—
|
|
|
42
|
|
|
100.0
|
|
|||
Equipment
|
309
|
|
|
300
|
|
|
9
|
|
|
3.0
|
|
|||
Board fees
|
493
|
|
|
433
|
|
|
60
|
|
|
13.9
|
|
|||
Advertising and marketing
|
398
|
|
|
115
|
|
|
283
|
|
|
246.1
|
|
|||
Merger-related
|
12,910
|
|
|
—
|
|
|
12,910
|
|
|
100.0
|
|
|||
Other
|
2,902
|
|
|
1,948
|
|
|
954
|
|
|
49.0
|
|
|||
Total noninterest expense
|
$
|
32,535
|
|
|
$
|
18,479
|
|
|
$
|
14,056
|
|
|
76.1
|
%
|
|
Nine Months Ended September 30,
|
|
2016 Compared to 2015
|
|||||||||||
(in thousands, except for percentages)
|
2016
|
|
2015
|
|
$
|
|
%
|
|||||||
Salaries and employee benefits
|
$
|
24,990
|
|
|
$
|
26,091
|
|
|
$
|
(1,101
|
)
|
|
(4.2
|
)%
|
Professional and consultant fees
|
2,101
|
|
|
3,584
|
|
|
(1,483
|
)
|
|
(41.4
|
)
|
|||
Occupancy
|
4,428
|
|
|
4,654
|
|
|
(226
|
)
|
|
(4.9
|
)
|
|||
FDIC insurance
|
1,524
|
|
|
1,361
|
|
|
163
|
|
|
12.0
|
|
|||
Data processing
|
3,985
|
|
|
4,285
|
|
|
(300
|
)
|
|
(7.0
|
)
|
|||
Problem loan and repossessed asset costs
|
420
|
|
|
1,150
|
|
|
(730
|
)
|
|
(63.5
|
)
|
|||
Impairments and gains and losses on sales of other real estate owned and repossessed assets, net
|
112
|
|
|
1,471
|
|
|
(1,359
|
)
|
|
(92.4
|
)
|
|||
Impairments and gains and losses on sales of premises and equipment, net
|
41
|
|
|
14
|
|
|
27
|
|
|
192.9
|
|
|||
Equipment
|
812
|
|
|
942
|
|
|
(130
|
)
|
|
(13.8
|
)
|
|||
Board fees
|
1,133
|
|
|
1,028
|
|
|
105
|
|
|
10.2
|
|
|||
Advertising and marketing
|
503
|
|
|
389
|
|
|
114
|
|
|
29.3
|
|
|||
Merger-related
|
15,555
|
|
|
—
|
|
|
15,555
|
|
|
100.0
|
|
|||
Other
|
6,813
|
|
|
4,883
|
|
|
1,930
|
|
|
39.5
|
|
|||
Total noninterest expense
|
$
|
62,417
|
|
|
$
|
49,852
|
|
|
$
|
12,565
|
|
|
25.2
|
%
|
|
September 30, 2016
|
||||||||||||
(in thousands, except for years and percentages)
|
Amortized Cost
|
|
Fair Value
|
|
Weighted Average Life in Years
|
|
Weighted Average Yield
|
||||||
Corporate bonds
|
$
|
986
|
|
|
$
|
987
|
|
|
1.96
|
|
|
2.52
|
%
|
Mortgage-backed securities - Agency
|
220,094
|
|
|
223,809
|
|
|
3.06
|
|
|
2.10
|
%
|
||
Asset-backed securities
|
14,862
|
|
|
14,759
|
|
|
1.96
|
|
|
3.17
|
%
|
||
Equity securities
|
969
|
|
|
1,679
|
|
|
—
|
|
|
—
|
%
|
||
Municipals
|
|
|
|
|
|
|
|
||||||
Tax-exempt
|
68,040
|
|
|
68,542
|
|
|
7.99
|
|
|
2.94
|
%
|
||
Taxable
|
18,154
|
|
|
18,369
|
|
|
5.52
|
|
|
2.00
|
%
|
||
Total securities available for sale
|
$
|
323,105
|
|
|
$
|
328,145
|
|
|
4.99
|
|
|
2.32
|
%
|
|
December 31, 2015
|
|||||||||||
(in thousands, except for years and percentages)
|
Amortized Cost
|
|
Fair Value
|
|
Weighted Average Life in Years
|
|
Weighted Average Yield
|
|||||
U.S. Agency securities
|
$
|
12,565
|
|
|
$
|
13,072
|
|
|
4.34
|
|
3.67
|
%
|
Corporate bonds
|
11,994
|
|
|
11,190
|
|
|
7.95
|
|
2.01
|
%
|
||
Mortgage-backed securities - Agency
|
147,980
|
|
|
149,199
|
|
|
3.78
|
|
2.46
|
%
|
||
Asset-backed securities
|
23,787
|
|
|
23,292
|
|
|
9.33
|
|
2.62
|
%
|
||
Equity securities
|
970
|
|
|
1,421
|
|
|
0.00
|
|
—
|
%
|
||
Total securities available for sale
|
$
|
197,296
|
|
|
$
|
198,174
|
|
|
4.75
|
|
2.53
|
%
|
|
September 30, 2016
|
|||||||||||||||||||||||||||||||||
(in thousands, except for percentages)
|
Within 1 Year
|
|
Weighted Average Yield
|
|
After 1 Year Through 5 Years
|
|
Weighted Average Yield
|
|
After 5 Years Through 10 Years
|
|
Weighted Average Yield
|
|
After 10 Years
|
|
Weighted Average Yield
|
|
Total
|
|
Weighted Average Yield
|
|||||||||||||||
Corporate bonds
|
$
|
—
|
|
|
—
|
|
|
$
|
987
|
|
|
2.52
|
%
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
987
|
|
|
2.52
|
%
|
Mortgage-backed securities - Agency
|
3,097
|
|
|
1.85
|
%
|
|
165,155
|
|
|
2.07
|
%
|
|
52,589
|
|
|
2.16
|
%
|
|
2,968
|
|
|
3.23
|
%
|
|
223,809
|
|
|
2.41
|
%
|
|||||
Asset-backed securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,758
|
|
|
3.17
|
%
|
|
—
|
|
|
—
|
|
|
14,758
|
|
|
3.17
|
%
|
|||||
Equity securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,679
|
|
|
—
|
|
|
1,679
|
|
|
—
|
|
|||||
Municipals - fixed rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Taxable
|
507
|
|
|
0.77
|
%
|
|
3,798
|
|
|
1.97
|
%
|
|
61,555
|
|
|
3.05
|
%
|
|
2,684
|
|
|
2.69
|
%
|
|
68,544
|
|
|
2.94
|
%
|
|||||
Tax exempt
|
—
|
|
|
—
|
|
|
7,606
|
|
|
1.77
|
%
|
|
10,762
|
|
|
2.17
|
%
|
|
—
|
|
|
—
|
|
|
18,368
|
|
|
2.00
|
%
|
|||||
Total securities available for sale
|
$
|
3,604
|
|
|
1.70
|
%
|
|
$
|
177,546
|
|
|
2.05
|
%
|
|
$
|
139,664
|
|
|
2.65
|
%
|
|
$
|
7,331
|
|
|
3.01
|
%
|
|
$
|
328,145
|
|
|
2.31
|
%
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||
(in thousands, except for percentages)
|
Amount
|
|
Percent of Total
|
|
Amount
|
|
Percent of Total
|
||||||
Commercial & Industrial
|
$
|
923,598
|
|
|
37.4
|
%
|
|
$
|
465,746
|
|
|
30.3
|
%
|
Construction
|
239,345
|
|
|
9.7
|
%
|
|
141,208
|
|
|
9.2
|
%
|
||
Commercial real estate
|
609,187
|
|
|
24.7
|
%
|
|
423,468
|
|
|
27.5
|
%
|
||
Residential real estate
|
418,166
|
|
|
16.9
|
%
|
|
347,336
|
|
|
22.5
|
%
|
||
Consumer
|
233,347
|
|
|
9.4
|
%
|
|
161,918
|
|
|
10.5
|
%
|
||
Guaranteed student loans
|
46,682
|
|
|
1.9
|
%
|
|
—
|
|
|
—
|
%
|
||
Overdrafts
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
||
Deferred loan fees and related costs
|
707
|
|
|
—
|
%
|
|
(724
|
)
|
|
—
|
%
|
||
Total loans
|
2,471,032
|
|
|
100.0
|
%
|
|
1,538,952
|
|
|
100.0
|
%
|
||
Allowance for loan losses
|
(33,730
|
)
|
|
|
|
(23,157
|
)
|
|
|
||||
Total loans, net of allowance
|
$
|
2,437,302
|
|
|
|
|
$
|
1,515,795
|
|
|
|
|
Three Months Ended September 30,
|
|
2016 Compared to 2015
|
||||||||||
(in thousands)
|
2016
|
|
2015
|
|
$
|
|
%
|
||||||
Provision for loan losses
|
$
|
10,685
|
|
|
$
|
(15
|
)
|
|
$
|
(10,700
|
)
|
|
n/m
|
|
Nine Months Ended September 30,
|
|
2016 Compared to 2015
|
||||||||||
(in thousands)
|
2016
|
|
2015
|
|
$
|
|
%
|
||||||
Provision for loan losses
|
$
|
10,704
|
|
|
$
|
622
|
|
|
$
|
(10,082
|
)
|
|
n/m
|
(in thousands, except for percentages)
|
September 30, 2016
|
|
December 31, 2015
|
||||
Allowance for loan losses:
|
|
|
|
||||
Specific component
|
$
|
18,092
|
|
|
$
|
5,447
|
|
Pooled component
|
13,654
|
|
|
16,110
|
|
||
Unallocated qualitative component
|
1,984
|
|
|
1,600
|
|
||
Total
|
$
|
33,730
|
|
|
$
|
23,157
|
|
Impaired loans
|
$
|
73,205
|
|
|
$
|
65,874
|
|
Non-impaired loans
|
2,397,827
|
|
|
1,473,078
|
|
||
Total loans
|
$
|
2,471,032
|
|
|
$
|
1,538,952
|
|
|
|
|
|
||||
Specific component as % of impaired loans
|
24.71
|
%
|
|
8.27
|
%
|
||
Pooled component as % of non-impaired loans
|
0.57
|
|
|
1.09
|
|
||
Allowance as % of loans
|
1.37
|
|
|
1.50
|
|
||
Allowance as % of nonaccrual loans
|
77.65
|
|
|
65.21
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||
|
|
|
|
||
Non-performing loans with no allowance due to previous charge-offs as a percentage of total loans
|
0.28
|
%
|
|
1.21
|
%
|
Non-performing loans with no allowance due to previous charge-offs as a percentage of non-performing loans
|
15.60
|
|
|
52.52
|
|
Charge-off rate for non-performing loans with no allowance due to previous charge-offs
|
40.94
|
|
|
15.81
|
|
Coverage ratio net of non-performing loans with no allowance due to previous charge-offs
|
108.26
|
|
|
137.49
|
|
Total allowance divided by total loans less non-performing loans with no allowance due to previous charge-offs
|
1.64
|
|
|
1.52
|
|
Allowance for individually impaired loans divided by impaired loans for which an allowance has been provided
|
51.19
|
|
|
18.85
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||
(in thousands)
|
Xenith Bank
|
Xenith Bankshares
|
|
Xenith Bank
|
Xenith Bankshares
|
||||||||
Common equity Tier 1 capital
|
$
|
315,529
|
|
$
|
345,673
|
|
|
$
|
254,500
|
|
$
|
262,700
|
|
Tier 1 capital
|
315,529
|
|
345,673
|
|
|
254,500
|
|
262,700
|
|
||||
Total risk-based capital
|
349,264
|
|
387,812
|
|
|
276,942
|
|
285,410
|
|
||||
Risk-weighted assets
|
2,817,905
|
|
2,848,023
|
|
|
1,756,043
|
|
1,780,696
|
|
|
September 30, 2016
|
|
December 31, 2015
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
Well
|
|
|
|
|
|
|
|
|
|
|
Regulatory
|
Capitalized with
|
|
Xenith
|
|
Xenith
|
|
Xenith
|
|
Xenith
|
|
Regulatory
|
Minimum with
|
Capital Buffer
|
|
Bank
|
|
Bankshares
|
|
Bank
|
|
Bankshares
|
|
Minimum
|
Capital Buffer
|
Fully Phased-in
|
Common equity Tier 1 capital ratio
|
11.20%
|
|
12.14%
|
|
14.47%
|
|
14.73%
|
|
4.50%
|
5.125%
|
> 6.50%
|
Tier 1 leverage ratio
|
11.55%
|
|
12.50%
|
|
13.20%
|
|
13.46%
|
|
4.00%
|
N/A
|
> 5.00%
|
Tier 1 risk-based capital ratio
|
11.20%
|
|
12.14%
|
|
14.47%
|
|
14.73%
|
|
6.00%
|
6.625%
|
> 8.00%
|
Total risk-based capital ratio
|
12.39%
|
|
13.62%
|
|
15.75%
|
|
16.01%
|
|
8.00%
|
8.625%
|
> 10.00%
|
(in thousands)
|
September 30, 2016
|
|
December 31, 2015
|
||||
Commercial lines of credit
|
$
|
320,880
|
|
|
$
|
124,834
|
|
Construction
|
112,737
|
|
|
27,758
|
|
||
Commercial real estate
|
43,544
|
|
|
13,004
|
|
||
Residential real estate
|
96,616
|
|
|
82,189
|
|
||
Consumer
|
12,472
|
|
|
7,164
|
|
||
Letters of credit
|
20,821
|
|
|
15,555
|
|
||
Total commitments
|
$
|
607,070
|
|
|
$
|
270,504
|
|
|
September 30, 2016
|
|||||
|
Change in Net Interest Income
|
|||||
(in thousands, except for percentages)
|
Amount
|
|
%
|
|||
Change in Interest Rates:
|
|
|
|
|||
+200 basis points
|
$
|
790
|
|
|
0.84
|
%
|
+100 basis points
|
1,070
|
|
|
1.14
|
|
|
–100 basis points
|
(990
|
)
|
|
(1.06
|
)
|
|
–200 basis points
|
(1,800
|
)
|
|
(1.91
|
)
|
XENITH BANKSHARES, INC.
|
(Registrant)
|
DATE:
|
November 14, 2016
|
|
/s/ T. Gaylon Layfield, III
|
|
|
|
T. Gaylon Layfield, III
|
|
|
|
Chief Executive Officer
|
|
|
|
|
|
|
|
/s/ Thomas W. Osgood
|
|
|
|
Thomas W. Osgood
|
|
|
|
Chief Financial Officer
|
Exhibit Number
|
|
Description
|
|
2.1
|
|
|
Asset Purchase Agreement, dated as of September 16, 2016, by and among Xenith Bank, Gateway Bank Mortgage, Inc. and Cornerstone Home Lending, Inc. (incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K filed on September 19, 2016 (File No. 001-32968)). (Schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The Company agrees to furnish supplementally to the SEC a copy of any omitted schedule upon request.)
|
10.1
|
|
|
Employment Agreement, dated as of February 10, 2016, by and among T. Gaylon Layfield, III, Xenith Bankshares, Inc. and Xenith Bank (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on July 29, 2016 (File No. 001-32968)).
|
10.2
|
|
|
Employment Agreement, dated as of February 10, 2016, by and among Thomas W. Osgood, Xenith Bankshares, Inc. and Xenith Bank (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed on July 29, 2016 (File No. 001-32968)).
|
31.1
|
|
|
Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
31.2
|
|
|
Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
32.1
|
|
|
Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
101.INS
|
|
|
XBRL Instance Document.
|
101.SCH
|
|
|
XBRL Taxonomy Extension Schema Document.
|
101.CAL
|
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.DEF
|
|
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
101.LAB
|
|
|
XBRL Taxonomy Extension Label Linkbase Document.
|
101.PRE
|
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
1 Year Xenith Bankshares, Inc. NEW Chart |
1 Month Xenith Bankshares, Inc. NEW Chart |
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