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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, 2017 and December 31, 2016
|
|
|
|
|
|
Consolidated Statements of Income
|
|
|
Three and Nine Months Ended September 30, 2017 and 2016
|
|
|
|
|
|
Consolidated Statements of Comprehensive Income
|
|
|
Three and Nine Months Ended September 30, 2017 and 2016
|
|
|
|
|
|
Consolidated Statement of Changes in Shareholders' Equity
|
|
|
Nine Months Ended September 30, 2017
|
|
|
|
|
|
Consolidated Statements of Cash Flows
|
|
|
Nine Months Ended September 30, 2017 and 2016
|
|
|
|
|
|
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, 2017
|
|
December 31, 2016
|
||||
Assets
|
|
|
|
||||
Cash and due from banks
|
$
|
14,960
|
|
|
$
|
18,825
|
|
Interest-bearing deposits in other banks
|
13,398
|
|
|
4,797
|
|
||
Overnight funds sold and due from Federal Reserve Bank
|
136,795
|
|
|
103,372
|
|
||
Investment securities available for sale, at fair value
|
305,768
|
|
|
317,443
|
|
||
Restricted equity securities, at cost
|
22,044
|
|
|
24,313
|
|
||
Loans held for sale
|
19,397
|
|
|
—
|
|
||
Loans
|
2,424,140
|
|
|
2,464,056
|
|
||
Allowance for loan losses
|
(16,265
|
)
|
|
(21,940
|
)
|
||
Net loans
|
2,407,875
|
|
|
2,442,116
|
|
||
Premises and equipment, net
|
55,178
|
|
|
56,996
|
|
||
Interest receivable
|
8,673
|
|
|
8,806
|
|
||
Other real estate owned and repossessed assets,
|
|
|
|
||||
net of valuation allowance
|
4,817
|
|
|
5,345
|
|
||
Goodwill
|
26,931
|
|
|
26,931
|
|
||
Core deposit intangible, net
|
3,393
|
|
|
3,787
|
|
||
Net deferred tax assets, net of valuation allowance
|
148,425
|
|
|
157,825
|
|
||
Bank-owned life insurance
|
73,431
|
|
|
72,104
|
|
||
Other assets
|
14,686
|
|
|
13,969
|
|
||
Assets of discontinued operations
|
—
|
|
|
10,563
|
|
||
Totals assets
|
$
|
3,255,771
|
|
|
$
|
3,267,192
|
|
Liabilities and Shareholders' Equity
|
|
|
|
||||
Deposits:
|
|
|
|
||||
Noninterest-bearing demand
|
$
|
541,275
|
|
|
$
|
501,678
|
|
Interest-bearing:
|
|
|
|
||||
Demand and money market
|
1,187,551
|
|
|
1,113,453
|
|
||
Savings
|
95,053
|
|
|
86,739
|
|
||
Time deposits less than $250
|
713,527
|
|
|
785,303
|
|
||
Time deposits $250 or more
|
67,984
|
|
|
84,797
|
|
||
Total deposits
|
2,605,390
|
|
|
2,571,970
|
|
||
Federal Home Loan Bank borrowings
|
105,000
|
|
|
172,000
|
|
||
Other borrowings
|
39,197
|
|
|
38,813
|
|
||
Interest payable
|
812
|
|
|
829
|
|
||
Other liabilities
|
20,439
|
|
|
19,093
|
|
||
Liabilities of discontinued operations
|
672
|
|
|
849
|
|
||
Total liabilities
|
2,771,510
|
|
|
2,803,554
|
|
||
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; 23,215,318 and 23,123,518 shares issued
|
|
|
|
||||
and outstanding on September 30, 2017 and December 31, 2016,
|
|
|
|
||||
respectively
|
232
|
|
|
231
|
|
||
Capital surplus
|
711,377
|
|
|
710,916
|
|
||
Accumulated deficit
|
(226,252
|
)
|
|
(245,538
|
)
|
||
Accumulated other comprehensive loss, net of tax
|
(1,096
|
)
|
|
(2,428
|
)
|
||
Total shareholders' equity before non-controlling interest
|
484,261
|
|
|
463,181
|
|
||
Non-controlling interest of discontinued operations
|
—
|
|
|
457
|
|
||
Total shareholders' equity
|
484,261
|
|
|
463,638
|
|
||
Total liabilities and shareholders' equity
|
$
|
3,255,771
|
|
|
$
|
3,267,192
|
|
|
|
|
|
||||
See accompanying notes to unaudited consolidated financial statements.
|
(unaudited)
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
(in thousands)
|
September 30, 2017
|
|
September 30, 2016
|
|
September 30, 2017
|
|
September 30, 2016
|
||||||||
Interest Income
|
|
|
|
|
|
|
|
||||||||
Loans, including fees
|
$
|
28,168
|
|
|
$
|
25,513
|
|
|
$
|
82,676
|
|
|
$
|
58,797
|
|
Investment securities
|
1,986
|
|
|
1,763
|
|
|
6,251
|
|
|
4,476
|
|
||||
Overnight funds sold and deposits in other banks
|
258
|
|
|
96
|
|
|
734
|
|
|
179
|
|
||||
Total interest income
|
30,412
|
|
|
27,372
|
|
|
89,661
|
|
|
63,452
|
|
||||
Interest Expense
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Demand and money market
|
1,822
|
|
|
1,391
|
|
|
5,082
|
|
|
3,075
|
|
||||
Savings
|
63
|
|
|
40
|
|
|
180
|
|
|
81
|
|
||||
Time deposits
|
2,265
|
|
|
2,169
|
|
|
6,890
|
|
|
5,746
|
|
||||
Interest expense on deposits
|
4,150
|
|
|
3,600
|
|
|
12,152
|
|
|
8,902
|
|
||||
Federal Home Loan Bank borrowings
|
299
|
|
|
109
|
|
|
594
|
|
|
109
|
|
||||
Other borrowings
|
738
|
|
|
652
|
|
|
2,128
|
|
|
1,706
|
|
||||
Total interest expense
|
5,187
|
|
|
4,361
|
|
|
14,874
|
|
|
10,717
|
|
||||
Net interest income
|
25,225
|
|
|
23,011
|
|
|
74,787
|
|
|
52,735
|
|
||||
Provision for loan losses
|
—
|
|
|
10,685
|
|
|
9
|
|
|
10,704
|
|
||||
Net interest income after provision for loan losses
|
25,225
|
|
|
12,326
|
|
|
74,778
|
|
|
42,031
|
|
||||
Noninterest Income
|
|
|
|
|
|
|
|
|
|
|
|
||||
Service charges on deposit accounts
|
1,258
|
|
|
1,191
|
|
|
3,561
|
|
|
3,447
|
|
||||
Earnings from bank-owned life insurance
|
426
|
|
|
395
|
|
|
1,327
|
|
|
1,046
|
|
||||
Gain on sale of loans
|
—
|
|
|
—
|
|
|
38
|
|
|
—
|
|
||||
Net gain on sale of investment securities available for sale
|
977
|
|
|
—
|
|
|
977
|
|
|
15
|
|
||||
Visa check card income
|
806
|
|
|
709
|
|
|
2,399
|
|
|
2,056
|
|
||||
Other
|
705
|
|
|
575
|
|
|
2,822
|
|
|
1,430
|
|
||||
Total noninterest income
|
4,172
|
|
|
2,870
|
|
|
11,124
|
|
|
7,994
|
|
||||
Noninterest Expense
|
|
|
|
|
|
|
|
|
|
|
|
||||
Salaries and employee benefits
|
9,914
|
|
|
9,880
|
|
|
30,186
|
|
|
24,990
|
|
||||
Professional and consultant fees
|
830
|
|
|
978
|
|
|
2,792
|
|
|
2,101
|
|
||||
Occupancy
|
1,802
|
|
|
1,594
|
|
|
5,586
|
|
|
4,428
|
|
||||
FDIC insurance
|
349
|
|
|
679
|
|
|
1,498
|
|
|
1,524
|
|
||||
Data processing and technology
|
1,367
|
|
|
1,446
|
|
|
3,909
|
|
|
3,985
|
|
||||
Problem loan and repossessed asset costs
|
(1
|
)
|
|
219
|
|
|
306
|
|
|
420
|
|
||||
Impairments on and (gains) and losses from sales of other real estate owned and repossessed assets
|
(48
|
)
|
|
685
|
|
|
63
|
|
|
112
|
|
||||
Equipment
|
322
|
|
|
309
|
|
|
1,049
|
|
|
812
|
|
||||
Board fees
|
350
|
|
|
493
|
|
|
596
|
|
|
1,133
|
|
||||
Advertising and marketing
|
158
|
|
|
398
|
|
|
667
|
|
|
503
|
|
||||
Merger-related
|
930
|
|
|
12,910
|
|
|
2,895
|
|
|
15,555
|
|
||||
Other
|
2,806
|
|
|
2,944
|
|
|
8,202
|
|
|
6,854
|
|
||||
Total noninterest expense
|
18,779
|
|
|
32,535
|
|
|
57,749
|
|
|
62,417
|
|
||||
Income (loss) from continuing operations before provision (benefit) for income taxes
|
10,618
|
|
|
(17,339
|
)
|
|
28,153
|
|
|
(12,392
|
)
|
||||
Provision (benefit) for income taxes - continuing operations
|
3,453
|
|
|
(64,840
|
)
|
|
8,997
|
|
|
(62,794
|
)
|
||||
Net income from continuing operations
|
7,165
|
|
|
47,501
|
|
|
19,156
|
|
|
50,402
|
|
||||
Net (loss) income from discontinued operations before (benefit) provision for income taxes
|
(26
|
)
|
|
2,011
|
|
|
(262
|
)
|
|
3,900
|
|
||||
(Benefit) provision for income taxes - discontinued operations
|
(5
|
)
|
|
842
|
|
|
(65
|
)
|
|
877
|
|
||||
Net (loss) income from discontinued operations attributable to non-controlling interest
|
(14
|
)
|
|
806
|
|
|
(129
|
)
|
|
1,556
|
|
||||
Net (loss) income from discontinued operations
|
(7
|
)
|
|
363
|
|
|
(68
|
)
|
|
1,467
|
|
||||
Net income attributable to Xenith Bankshares, Inc.
|
$
|
7,158
|
|
|
$
|
47,864
|
|
|
$
|
19,088
|
|
|
$
|
51,869
|
|
|
|
|
|
|
|
|
|
||||||||
See accompanying notes to unaudited consolidated financial statements.
|
(unaudited)
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
(in thousands)
|
September 30, 2017
|
|
September 30, 2016
|
|
September 30, 2017
|
|
September 30, 2016
|
|
||||||||
Net income attributable to Xenith Bankshares, Inc.
|
$
|
7,158
|
|
|
$
|
47,864
|
|
|
$
|
19,088
|
|
|
$
|
51,869
|
|
|
Other comprehensive income, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Change in net unrealized gain on securities available for sale
|
339
|
|
|
475
|
|
|
3,026
|
|
|
$
|
4,178
|
|
|
|||
Income tax effect
|
(119
|
)
|
|
—
|
|
|
(1,059
|
)
|
|
(1,340
|
)
|
|
||||
Reclassification adjustment for net gain on sale of investment securities included in net income
|
(977
|
)
|
|
—
|
|
|
(977
|
)
|
|
(15
|
)
|
|
||||
Income tax effect
|
342
|
|
|
—
|
|
|
342
|
|
|
5
|
|
|
||||
Other comprehensive income, net of tax
|
(415
|
)
|
|
475
|
|
|
1,332
|
|
|
2,828
|
|
|
||||
Comprehensive income attributable to Xenith Bankshares, Inc.
|
$
|
6,743
|
|
|
$
|
48,339
|
|
|
$
|
20,420
|
|
|
$
|
54,697
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated Other
|
|
|
|
|
|||||||||||||
(unaudited)
|
Common Stock
|
|
Capital
|
|
Accumulated
|
|
Comprehensive Income (Loss),
|
|
Non-controlling
|
|
Total Shareholders'
|
|||||||||||||||
(in thousands, except share data)
|
Shares
|
|
Amount
|
|
Surplus
|
|
Deficit
|
|
Net of Tax
|
|
Interest
|
|
Equity
|
|||||||||||||
Balance at December 31, 2016
|
23,123,518
|
|
|
$
|
231
|
|
|
$
|
710,916
|
|
|
$
|
(245,538
|
)
|
|
$
|
(2,428
|
)
|
|
$
|
457
|
|
|
$
|
463,638
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
19,088
|
|
|
—
|
|
|
(129
|
)
|
|
18,959
|
|
||||||
Other comprehensive income, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,332
|
|
|
—
|
|
|
1,332
|
|
||||||
Share-based compensation expense
|
—
|
|
|
—
|
|
|
1,530
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,530
|
|
||||||
Net settlement of restricted stock awards
|
36,824
|
|
|
—
|
|
|
(163
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(163
|
)
|
||||||
Restricted stock awards issued under incentive plan
|
—
|
|
|
—
|
|
|
236
|
|
|
|
|
—
|
|
|
—
|
|
|
236
|
|
|||||||
Restricted stock awards granted
|
14,823
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Forfeiture of restricted stock awards
|
(404
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net exercises of stock options
|
40,557
|
|
|
1
|
|
|
529
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
530
|
|
||||||
Reclassification to other liabilities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(328
|
)
|
|
(328
|
)
|
||||||
Cumulative effect adjustment of adoption of accounting principle
|
—
|
|
|
—
|
|
|
—
|
|
|
198
|
|
|
—
|
|
|
—
|
|
|
198
|
|
||||||
Repurchase of U.S. Treasury warrant
|
—
|
|
|
$
|
—
|
|
|
$
|
(1,671
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
(1,671
|
)
|
|
Balance at September 30, 2017
|
23,215,318
|
|
|
$
|
232
|
|
|
$
|
711,377
|
|
|
$
|
(226,252
|
)
|
|
$
|
(1,096
|
)
|
|
$
|
—
|
|
|
$
|
484,261
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
See accompanying notes to unaudited consolidated financial statements.
|
(unaudited)
|
Nine Months Ended
|
||||||
(in thousands)
|
September 30, 2017
|
|
September 30, 2016
|
||||
Cash flows from operating activities
|
|
|
|
|
|
||
Net income from continuing operations
|
$
|
19,156
|
|
|
$
|
50,402
|
|
Adjustments to reconcile net income to net cash used in operating activities:
|
|
|
|
|
|
||
Depreciation and amortization
|
2,172
|
|
|
2,146
|
|
||
Deferred income tax expense
|
8,997
|
|
|
(67,536
|
)
|
||
Accretion and amortization of fair value adjustments
|
(2,246
|
)
|
|
(798
|
)
|
||
Amortization of core deposit intangible
|
394
|
|
|
—
|
|
||
Provision for loan losses
|
9
|
|
|
10,704
|
|
||
Share-based compensation expense
|
1,530
|
|
|
1,532
|
|
||
Net amortization of premiums and accretion of discounts on investment securities available for sale
|
4,587
|
|
|
1,541
|
|
||
Unrealized (gain) loss on investment securities available for sale
|
(2,049
|
)
|
|
—
|
|
||
Earnings from bank-owned life insurance
|
(1,327
|
)
|
|
(1,046
|
)
|
||
Gain on sale of investment securities available for sale
|
(977
|
)
|
|
(15
|
)
|
||
Impairments on and gains and losses from sales of other real estate owned and repossessed assets
|
63
|
|
|
56
|
|
||
Impairments on and gains and losses from sales of premises and equipment
|
(15
|
)
|
|
41
|
|
||
Gain on sale of loans
|
(38
|
)
|
|
—
|
|
||
Changes in:
|
|
|
|
|
|
||
Interest receivable
|
133
|
|
|
(625
|
)
|
||
Other assets
|
(768
|
)
|
|
10,883
|
|
||
Interest payable
|
(17
|
)
|
|
(103
|
)
|
||
Other liabilities
|
1,418
|
|
|
(37,483
|
)
|
||
Net cash provided by operating activities - continuing operations
|
31,022
|
|
|
(30,301
|
)
|
||
Net cash provided by operating activities - discontinued operations
|
9,796
|
|
|
1,835
|
|
||
Cash provided by operating activities
|
40,818
|
|
|
(28,466
|
)
|
||
Cash flows from investing activities
|
|
|
|
|
|
||
Cash acquired in acquisition
|
—
|
|
|
69,241
|
|
||
Proceeds from maturities and calls of investment securities available for sale
|
34,202
|
|
|
27,002
|
|
||
Proceeds from sale of investment securities available for sale
|
34,473
|
|
|
31,632
|
|
||
Purchase of investment securities available for sale
|
(56,512
|
)
|
|
(46,943
|
)
|
||
Proceeds from sale of restricted equity securities
|
18,573
|
|
|
11,317
|
|
||
Purchase of restricted equity securities
|
(16,303
|
)
|
|
(25,962
|
)
|
||
Proceeds from sale of guaranteed student loans
|
20,000
|
|
|
—
|
|
||
Net decrease (increase) in loans
|
(3,801
|
)
|
|
(107,841
|
)
|
||
Proceeds from sale of other real estate owned and repossessed assets, net
|
1,769
|
|
|
12,078
|
|
||
Purchases of premises and equipment, net
|
(339
|
)
|
|
(1,788
|
)
|
||
Net cash provided by (used in) investing activities - continuing operations
|
32,062
|
|
|
(31,264
|
)
|
||
Net cash (used in) investing activities - discontinued operations
|
—
|
|
|
1,473
|
|
||
Cash provided by (used in) investing activities
|
32,062
|
|
|
(29,791
|
)
|
||
Cash flows from financing activities
|
|
|
|
|
|||
Net increase (decrease) in deposits
|
33,420
|
|
|
(74,615
|
)
|
||
Net (decrease) increase in short-term Federal Home Loan Bank borrowings
|
(67,000
|
)
|
|
172,500
|
|
||
Repayments of long term Federal Home Loan Bank borrowings
|
—
|
|
|
—
|
|
||
Net increase in other borrowings
|
—
|
|
|
8,405
|
|
||
Issuance of common stock related to bank acquisition
|
—
|
|
|
—
|
|
||
Proceeds from exercise of stock options
|
530
|
|
|
26
|
|
||
Repurchase of common stock in the settlement of restricted stock units
|
—
|
|
|
(970
|
)
|
||
Repurchase of treasury warrants
|
(1,671
|
)
|
|
—
|
|
||
Cash consideration paid in acquisition
|
—
|
|
|
(1
|
)
|
||
Reclassification to other liabilities
|
—
|
|
|
—
|
|
||
Distributed non-controlling interest
|
—
|
|
|
(925
|
)
|
||
Net cash (used in) provided by financing activities
|
(34,721
|
)
|
|
104,420
|
|
||
Increase in cash and cash equivalents
|
38,159
|
|
|
46,163
|
|
||
Cash and cash equivalents at beginning of period
|
126,994
|
|
|
63,746
|
|
||
Cash and cash equivalents at end of period
|
$
|
165,153
|
|
|
$
|
109,909
|
|
Supplemental cash flow information:
|
|
|
|
|
|
Cash paid for interest
|
$
|
14,870
|
|
|
$
|
10,140
|
|
Cash paid for income taxes
|
$
|
—
|
|
|
$
|
79
|
|
Supplemental non-cash information:
|
|
|
|
|
|
||
Change in unrealized gain on investment securities available for sale, net of tax
|
$
|
1,332
|
|
|
$
|
2,828
|
|
Transfer from other real estate owned and repossessed assets to loans
|
$
|
—
|
|
|
$
|
1,194
|
|
Transfer from loans to other real estate owned and repossessed assets
|
$
|
1,304
|
|
|
$
|
5,003
|
|
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.
|
Fair value of assets acquired:
|
||||
Cash and cash equivalents
|
|
$
|
69,241
|
|
Securities
|
|
139,025
|
|
|
Loans
|
|
827,987
|
|
|
Premises and equipment
|
|
6,180
|
|
|
Other real estate owned
|
|
738
|
|
|
Core deposit intangible
|
|
4,006
|
|
|
Accrued interest receivable
|
|
4,464
|
|
|
Deferred tax asset
|
|
5,156
|
|
|
Bank owned life insurance
|
|
19,917
|
|
|
Other assets
|
|
17,879
|
|
|
Total assets
|
|
$
|
1,094,593
|
|
Fair value of liabilities assumed:
|
||||
Deposits
|
|
$
|
956,078
|
|
Accrued interest payable
|
|
285
|
|
|
Supplemental executive retirement plan
|
|
2,162
|
|
|
Borrowings
|
|
36,533
|
|
|
Other liabilities
|
|
8,112
|
|
|
Total liabilities
|
|
$
|
1,003,170
|
|
Net identifiable assets acquired
|
|
$
|
91,423
|
|
|
|
|
||
Consideration paid:
|
||||
Company's common shares issued (1)
|
|
58,915,439
|
|
|
Purchase price per share (2)
|
|
$
|
1.97
|
|
Value of common stock issued
|
|
$
|
116,063
|
|
Estimated fair value of stock options
|
|
2,290
|
|
|
Cash in lieu of fractional shares
|
|
1
|
|
|
Total consideration paid
|
|
118,354
|
|
|
Goodwill
|
|
$
|
26,931
|
|
_______________________
|
|
|
||
(1) The issuance of shares of common stock in the Legacy Xenith Merger preceded the Reverse Stock Split and the number of shares of common stock is presented on a pre-Reverse Stock Split basis.
|
||||
(2) The value of the shares of common stock exchanged for shares of Legacy Xenith common stock was based upon the closing price of common stock at July 28, 2016, the last trading day prior to the date of completion of the Legacy Xenith Merger.
|
|
Purchased Performing
|
|
Purchased Impaired
|
|
Total
|
||||||
Principal payments receivable
|
$
|
830,613
|
|
|
$
|
9,851
|
|
|
$
|
840,464
|
|
Fair value adjustment - credit and interest
|
(9,318
|
)
|
|
(3,159
|
)
|
|
(12,477
|
)
|
|||
Fair value of acquired loans
|
$
|
821,295
|
|
|
$
|
6,692
|
|
|
$
|
827,987
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||
|
September 30, 2017
|
September 30, 2016
|
|
September 30, 2017
|
September 30, 2016
|
||||||||
Net interest income
|
$
|
7
|
|
$
|
133
|
|
|
$
|
11
|
|
$
|
440
|
|
Provision for loan losses
|
—
|
|
(3
|
)
|
|
(5
|
)
|
(22
|
)
|
||||
Net interest income after provision for loan losses
|
7
|
|
136
|
|
|
16
|
|
462
|
|
||||
Noninterest income
|
—
|
|
6,760
|
|
|
164
|
|
16,987
|
|
||||
Noninterest expense:
|
|
|
|
|
|
||||||||
Salaries and employee benefits
|
(1
|
)
|
3,901
|
|
|
247
|
|
10,368
|
|
||||
Professional and consultant fees
|
|
|
73
|
|
|
5
|
|
204
|
|
||||
Occupancy
|
2
|
|
176
|
|
|
7
|
|
590
|
|
||||
Data processing
|
—
|
|
146
|
|
|
51
|
|
371
|
|
||||
Equipment
|
10
|
|
13
|
|
|
2
|
|
56
|
|
||||
Advertising and marketing
|
—
|
|
137
|
|
|
6
|
|
568
|
|
||||
Other
|
22
|
|
439
|
|
|
124
|
|
1,392
|
|
||||
Total noninterest expense
|
33
|
|
4,885
|
|
|
442
|
|
13,549
|
|
||||
Net (loss) income before provision for income taxes
|
(26
|
)
|
2,011
|
|
|
(262
|
)
|
3,900
|
|
||||
(Benefit) provision for income taxes
|
(5
|
)
|
842
|
|
|
(65
|
)
|
877
|
|
||||
Net (loss) income
|
(21
|
)
|
1,169
|
|
|
(197
|
)
|
3,023
|
|
||||
Net (loss) income attributable to non-controlling interest
|
(14
|
)
|
806
|
|
|
(129
|
)
|
1,556
|
|
||||
Net (loss) income attributable to Xenith Bankshares, Inc.
|
$
|
(7
|
)
|
$
|
363
|
|
|
$
|
(68
|
)
|
$
|
1,467
|
|
|
September 30, 2017
|
||||||||||||||
|
|
|
Gross
|
|
Gross
|
|
|
||||||||
|
|
|
Unrealized
|
|
Unrealized
|
|
|
||||||||
|
Amortized Cost
|
|
Gains
|
|
Losses
|
|
Fair Value
|
||||||||
Mortgage-backed securities
|
|
|
|
|
|
|
|
||||||||
Agencies
|
$
|
127,298
|
|
|
$
|
450
|
|
|
$
|
495
|
|
|
$
|
127,253
|
|
Collateralized
|
63,716
|
|
|
68
|
|
|
800
|
|
|
62,984
|
|
||||
Collateralized mortgage obligations
|
27,194
|
|
|
41
|
|
|
176
|
|
|
27,059
|
|
||||
Asset-backed securities
|
6,686
|
|
|
—
|
|
|
75
|
|
|
6,611
|
|
||||
Municipals
|
|
|
|
|
|
|
|
||||||||
Tax-exempt
|
63,486
|
|
|
32
|
|
|
719
|
|
|
62,799
|
|
||||
Taxable
|
17,958
|
|
|
—
|
|
|
277
|
|
|
17,681
|
|
||||
Corporate bonds
|
975
|
|
|
—
|
|
|
—
|
|
|
975
|
|
||||
Equity securities
|
141
|
|
|
265
|
|
|
—
|
|
|
406
|
|
||||
Total securities available for sale
|
$
|
307,454
|
|
|
$
|
856
|
|
|
$
|
2,542
|
|
|
$
|
305,768
|
|
|
December 31, 2016
|
||||||||||||||
|
|
|
Gross
|
|
Gross
|
|
|
||||||||
|
|
|
Unrealized
|
|
Unrealized
|
|
|
||||||||
|
Amortized Cost
|
|
Gains
|
|
Losses
|
|
Fair Value
|
||||||||
Mortgage-backed securities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Agencies
|
$
|
135,054
|
|
|
$
|
793
|
|
|
$
|
957
|
|
|
$
|
134,890
|
|
Collateralized
|
63,837
|
|
|
61
|
|
|
1,145
|
|
|
62,753
|
|
||||
Collateralized mortgage obligations
|
19,626
|
|
|
288
|
|
|
104
|
|
|
19,810
|
|
||||
Asset-backed securities
|
14,866
|
|
|
—
|
|
|
108
|
|
|
14,758
|
|
||||
Municipals
|
|
|
|
|
|
|
|
|
|
|
|
||||
Tax-exempt
|
67,738
|
|
|
—
|
|
|
2,983
|
|
|
64,755
|
|
||||
Taxable
|
18,105
|
|
|
1
|
|
|
430
|
|
|
17,676
|
|
||||
Corporate bonds
|
983
|
|
|
1
|
|
|
—
|
|
|
984
|
|
||||
Equity securities
|
969
|
|
|
848
|
|
|
—
|
|
|
1,817
|
|
||||
Total securities available for sale
|
$
|
321,178
|
|
|
$
|
1,992
|
|
|
$
|
5,727
|
|
|
$
|
317,443
|
|
|
|
|
September 30, 2017
|
|||||||||||||||||||||||
|
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
|||||||||||||||||||
|
Number of
|
|
|
|
Unrealized
|
|
|
|
Unrealized
|
|
|
|
Unrealized
|
|||||||||||||
|
Securities
|
|
Fair Value
|
|
Loss
|
|
Fair Value
|
|
Loss
|
|
Fair Value
|
|
Loss
|
|||||||||||||
Mortgage-backed securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Agencies
|
16
|
|
|
$
|
49,514
|
|
|
$
|
356
|
|
|
$
|
11,389
|
|
|
$
|
139
|
|
|
$
|
60,903
|
|
|
$
|
495
|
|
Collateralized
|
17
|
|
|
13,199
|
|
|
150
|
|
|
29,956
|
|
|
650
|
|
|
43,155
|
|
|
800
|
|
||||||
Collateralized mortgage obligations
|
7
|
|
|
25,499
|
|
|
176
|
|
|
—
|
|
|
—
|
|
|
25,499
|
|
|
176
|
|
||||||
Asset-backed securities
|
2
|
|
|
—
|
|
|
—
|
|
|
6,611
|
|
|
75
|
|
|
6,611
|
|
|
75
|
|
||||||
Municipals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Tax-exempt
|
36
|
|
|
8,998
|
|
|
143
|
|
|
8,682
|
|
|
134
|
|
|
17,680
|
|
|
277
|
|
||||||
Taxable
|
10
|
|
|
13,937
|
|
|
82
|
|
|
37,302
|
|
|
637
|
|
|
51,239
|
|
|
719
|
|
||||||
Total securities available for sale
|
88
|
|
|
$
|
111,147
|
|
|
$
|
907
|
|
|
$
|
93,940
|
|
|
$
|
1,635
|
|
|
$
|
205,087
|
|
|
$
|
2,542
|
|
|
|
|
December 31, 2016
|
|||||||||||||||||||||||
|
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
|||||||||||||||||||
|
Number of
|
|
|
|
Unrealized
|
|
|
|
Unrealized
|
|
|
|
Unrealized
|
|||||||||||||
|
Securities
|
|
Fair Value
|
|
Loss
|
|
Fair Value
|
|
Loss
|
|
Fair Value
|
|
Loss
|
|||||||||||||
Mortgage-backed securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Agencies
|
33
|
|
|
$
|
88,315
|
|
|
$
|
945
|
|
|
$
|
695
|
|
|
$
|
12
|
|
|
$
|
89,010
|
|
|
$
|
957
|
|
Collateralized
|
19
|
|
|
42,272
|
|
|
1,145
|
|
|
—
|
|
|
—
|
|
|
42,272
|
|
|
1,145
|
|
||||||
Collateralized mortgage obligations
|
6
|
|
|
7,216
|
|
|
104
|
|
|
—
|
|
|
—
|
|
|
7,216
|
|
|
104
|
|
||||||
Asset-backed securities
|
6
|
|
|
5,443
|
|
|
64
|
|
|
9,315
|
|
|
44
|
|
|
14,758
|
|
|
108
|
|
||||||
Municipals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Tax-exempt
|
44
|
|
|
64,755
|
|
|
2,983
|
|
|
—
|
|
|
—
|
|
|
64,755
|
|
|
2,983
|
|
||||||
Taxable
|
9
|
|
|
17,149
|
|
|
430
|
|
|
—
|
|
|
—
|
|
|
17,149
|
|
|
430
|
|
||||||
Total securities available for sale
|
117
|
|
|
$
|
225,150
|
|
|
$
|
5,671
|
|
|
$
|
10,010
|
|
|
$
|
56
|
|
|
$
|
235,160
|
|
|
$
|
5,727
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||
|
Amortized
|
|
|
|
Amortized
|
|
|
||||||||
|
Cost
|
|
Fair Value
|
|
Cost
|
|
Fair Value
|
||||||||
Municipals
|
|
|
|
|
|
|
|
||||||||
Due in one year or less
|
$
|
254
|
|
|
$
|
254
|
|
|
$
|
502
|
|
|
$
|
502
|
|
Due after one year
|
|
|
|
|
|
|
|
||||||||
but less than five years
|
14,121
|
|
|
13,950
|
|
|
11,300
|
|
|
11,072
|
|
||||
Due after five years
|
|
|
|
|
|
|
|
||||||||
but less than ten years
|
64,487
|
|
|
63,732
|
|
|
69,900
|
|
|
66,880
|
|
||||
Due after ten years
|
2,582
|
|
|
2,544
|
|
|
4,141
|
|
|
3,977
|
|
||||
Mortgage-backed securities
|
|
|
|
|
|
|
|
||||||||
Agencies
|
127,298
|
|
|
127,253
|
|
|
135,054
|
|
|
134,890
|
|
||||
Collateralized
|
63,716
|
|
|
62,984
|
|
|
63,837
|
|
|
62,753
|
|
||||
Collateralized mortgage obligations
|
27,194
|
|
|
27,059
|
|
|
19,626
|
|
|
19,810
|
|
||||
Corporate Bonds
|
975
|
|
|
975
|
|
|
983
|
|
|
984
|
|
||||
Asset-backed securities
|
6,686
|
|
|
6,611
|
|
|
14,866
|
|
|
14,758
|
|
||||
Equity securities
|
141
|
|
|
406
|
|
|
969
|
|
|
1,817
|
|
||||
Total securities available for sale
|
$
|
307,454
|
|
|
$
|
305,768
|
|
|
$
|
321,178
|
|
|
$
|
317,443
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
Commercial & Industrial
|
$
|
766,506
|
|
|
$
|
895,952
|
|
Construction
|
274,441
|
|
|
257,712
|
|
||
Commercial real estate
|
655,001
|
|
|
585,727
|
|
||
Residential real estate
|
390,071
|
|
|
405,291
|
|
||
Consumer
|
336,832
|
|
|
274,008
|
|
||
Guaranteed student loans
|
—
|
|
|
44,043
|
|
||
Deferred loan fees and related costs
|
1,289
|
|
|
1,323
|
|
||
Total loans
|
$
|
2,424,140
|
|
|
$
|
2,464,056
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Balance at beginning of period
|
$
|
17,027
|
|
|
$
|
22,903
|
|
|
$
|
21,940
|
|
|
$
|
23,157
|
|
Charge-offs:
|
|
|
|
|
|
|
|
||||||||
Commercial & Industrial
|
186
|
|
|
84
|
|
|
5,199
|
|
|
1,160
|
|
||||
Construction
|
6
|
|
|
—
|
|
|
61
|
|
|
635
|
|
||||
Commercial real estate
|
21
|
|
|
—
|
|
|
743
|
|
|
663
|
|
||||
Residential real estate
|
1,355
|
|
|
340
|
|
|
1,690
|
|
|
2,234
|
|
||||
Consumer
|
8
|
|
|
3
|
|
|
671
|
|
|
45
|
|
||||
Overdrafts
|
52
|
|
|
43
|
|
|
162
|
|
|
106
|
|
||||
Total charge-offs
|
1,628
|
|
|
470
|
|
|
8,526
|
|
|
4,843
|
|
||||
Recoveries:
|
|
|
|
|
|
|
|
||||||||
Commercial & Industrial
|
418
|
|
|
173
|
|
|
840
|
|
|
2,833
|
|
||||
Construction
|
37
|
|
|
167
|
|
|
732
|
|
|
911
|
|
||||
Commercial real estate
|
95
|
|
|
11
|
|
|
398
|
|
|
341
|
|
||||
Residential real estate
|
116
|
|
|
253
|
|
|
613
|
|
|
603
|
|
||||
Consumer
|
183
|
|
|
7
|
|
|
221
|
|
|
23
|
|
||||
Overdrafts
|
17
|
|
|
1
|
|
|
38
|
|
|
1
|
|
||||
Total recoveries
|
866
|
|
|
612
|
|
|
2,842
|
|
|
4,712
|
|
||||
Net charge-offs
|
762
|
|
|
(142
|
)
|
|
5,684
|
|
|
131
|
|
||||
Provision for loan losses
|
—
|
|
|
10,685
|
|
|
9
|
|
|
10,704
|
|
||||
Balance at end of period
|
$
|
16,265
|
|
|
$
|
33,730
|
|
|
$
|
16,265
|
|
|
$
|
33,730
|
|
|
September 30, 2017
|
||||||||||
|
|
|
Individually Evaluated
|
|
Collectively Evaluated
|
||||||
|
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
|
9
|
|
|
9
|
|
|
—
|
|
|||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total purchased credit-impaired loans
|
9
|
|
|
9
|
|
|
—
|
|
|||
Originated and other purchased loans
|
|
|
|
|
|
||||||
Commercial & Industrial
|
2,381
|
|
|
172
|
|
|
2,209
|
|
|||
Construction
|
1,613
|
|
|
240
|
|
|
1,373
|
|
|||
Commercial real estate
|
3,320
|
|
|
654
|
|
|
2,666
|
|
|||
Residential real estate
|
3,126
|
|
|
1,306
|
|
|
1,820
|
|
|||
Consumer
|
1,876
|
|
|
—
|
|
|
1,876
|
|
|||
Unallocated qualitative
|
3,940
|
|
|
—
|
|
|
3,940
|
|
|||
Total originated and other purchased loans
|
16,256
|
|
|
2,372
|
|
|
13,884
|
|
|||
Total allowance for loan losses
|
$
|
16,265
|
|
|
$
|
2,381
|
|
|
$
|
13,884
|
|
Loan balances applicable to:
|
|
|
|
|
|
||||||
Purchased credit-impaired loans
|
|
|
|
|
|
||||||
Commercial & Industrial
|
$
|
758
|
|
|
$
|
758
|
|
|
$
|
—
|
|
Construction
|
935
|
|
|
935
|
|
|
—
|
|
|||
Commercial real estate
|
987
|
|
|
987
|
|
|
—
|
|
|||
Residential real estate
|
1,618
|
|
|
1,618
|
|
|
—
|
|
|||
Consumer
|
45
|
|
|
45
|
|
|
—
|
|
|||
Total purchased credit-impaired loans
|
4,343
|
|
|
4,343
|
|
|
—
|
|
|||
Originated and other purchased loans
|
|
|
|
|
|
||||||
Commercial & Industrial
|
765,748
|
|
|
15,643
|
|
|
750,105
|
|
|||
Construction
|
273,506
|
|
|
7,030
|
|
|
266,476
|
|
|||
Commercial real estate
|
654,014
|
|
|
7,284
|
|
|
646,730
|
|
|||
Residential real estate
|
388,453
|
|
|
11,312
|
|
|
377,141
|
|
|||
Consumer
|
336,787
|
|
|
213
|
|
|
336,574
|
|
|||
Deferred loan fees and related costs
|
1,289
|
|
|
—
|
|
|
1,289
|
|
|||
Total originated and other purchased loans
|
2,419,797
|
|
|
41,482
|
|
|
2,378,315
|
|
|||
Total loans
|
$
|
2,424,140
|
|
|
$
|
45,825
|
|
|
$
|
2,378,315
|
|
|
December 31, 2016
|
||||||||||
|
|
|
Individually Evaluated
|
|
Collectively Evaluated
|
||||||
|
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
|
5,816
|
|
|
3,327
|
|
|
2,489
|
|
|||
Construction
|
1,551
|
|
|
161
|
|
|
1,390
|
|
|||
Commercial real estate
|
2,410
|
|
|
734
|
|
|
1,676
|
|
|||
Residential real estate
|
5,205
|
|
|
1,275
|
|
|
3,930
|
|
|||
Consumer
|
1,967
|
|
|
606
|
|
|
1,361
|
|
|||
Guaranteed student loans
|
—
|
|
|
—
|
|
|
—
|
|
|||
Unallocated qualitative
|
4,991
|
|
|
—
|
|
|
4,991
|
|
|||
Total originated and other purchased loans
|
21,940
|
|
|
6,103
|
|
|
15,837
|
|
|||
Total allowance for loan losses
|
$
|
21,940
|
|
|
$
|
6,103
|
|
|
$
|
15,837
|
|
Loan balances applicable to:
|
|
|
|
|
|
||||||
Purchased credit-impaired loans
|
|
|
|
|
|
||||||
Commercial & Industrial
|
$
|
897
|
|
|
$
|
897
|
|
|
$
|
—
|
|
Construction
|
992
|
|
|
992
|
|
|
—
|
|
|||
Commercial real estate
|
1,090
|
|
|
1,090
|
|
|
—
|
|
|||
Residential real estate
|
2,122
|
|
|
2,122
|
|
|
—
|
|
|||
Consumer
|
55
|
|
|
55
|
|
|
—
|
|
|||
Total purchased credit-impaired loans
|
5,156
|
|
|
5,156
|
|
|
—
|
|
|||
Originated and other purchased loans
|
|
|
|
|
|
||||||
Commercial & Industrial
|
895,055
|
|
|
24,052
|
|
|
871,003
|
|
|||
Construction
|
256,720
|
|
|
7,982
|
|
|
248,738
|
|
|||
Commercial real estate
|
584,637
|
|
|
9,184
|
|
|
575,453
|
|
|||
Residential real estate
|
403,169
|
|
|
12,637
|
|
|
390,532
|
|
|||
Consumer
|
273,953
|
|
|
1,551
|
|
|
272,402
|
|
|||
Guaranteed student loans
|
44,043
|
|
|
—
|
|
|
44,043
|
|
|||
Deferred loan fees and related costs
|
1,323
|
|
|
—
|
|
|
1,323
|
|
|||
Total originated and other purchased loans
|
2,458,900
|
|
|
55,406
|
|
|
2,403,494
|
|
|||
Total loans
|
$
|
2,464,056
|
|
|
$
|
60,562
|
|
|
$
|
2,403,494
|
|
|
September 30, 2017
|
||||||||||
|
Recorded Investment
|
|
Unpaid Principal Balance
|
|
Related Allowance
|
||||||
With no related allowance recorded:
|
|
|
|
|
|
||||||
Purchased credit-impaired loans
|
|
|
|
|
|
||||||
Commercial & Industrial
|
$
|
758
|
|
|
$
|
1,099
|
|
|
$
|
—
|
|
Construction
|
935
|
|
|
1,389
|
|
|
—
|
|
|||
Commercial real estate
|
987
|
|
|
1,402
|
|
|
—
|
|
|||
Residential real estate
|
1,571
|
|
|
2,067
|
|
|
—
|
|
|||
Consumer
|
45
|
|
|
80
|
|
|
—
|
|
|||
Originated and other purchased loans
|
|
|
|
|
|
||||||
Commercial & Industrial
|
10,871
|
|
|
12,398
|
|
|
—
|
|
|||
Construction
|
6,559
|
|
|
15,513
|
|
|
—
|
|
|||
Commercial real estate
|
5,026
|
|
|
5,745
|
|
|
—
|
|
|||
Residential real estate
|
5,518
|
|
|
7,015
|
|
|
—
|
|
|||
Consumer
|
213
|
|
|
235
|
|
|
—
|
|
|||
With an allowance recorded:
|
|
|
|
|
|
||||||
Purchased credit-impaired loans
|
|
|
|
|
|
||||||
Commercial & Industrial
|
—
|
|
|
—
|
|
|
—
|
|
|||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|||
Commercial real estate
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential real estate
|
47
|
|
|
65
|
|
|
9
|
|
|||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|||
Originated and other purchased loans
|
|
|
|
|
|
||||||
Commercial & Industrial
|
4,772
|
|
|
4,772
|
|
|
172
|
|
|||
Construction
|
471
|
|
|
471
|
|
|
240
|
|
|||
Commercial real estate
|
2,258
|
|
|
2,258
|
|
|
654
|
|
|||
Residential real estate
|
5,794
|
|
|
5,832
|
|
|
1,306
|
|
|||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total loans individually evaluated for impairment
|
$
|
45,825
|
|
|
$
|
60,341
|
|
|
$
|
2,381
|
|
|
December 31, 2016
|
||||||||||
|
Recorded Investment
|
|
Unpaid Principal Balance
|
|
Related Allowance
|
||||||
With no related allowance recorded:
|
|
|
|
|
|
||||||
Purchased credit-impaired loans
|
|
|
|
|
|
||||||
Commercial & Industrial
|
$
|
897
|
|
|
$
|
1,298
|
|
|
$
|
—
|
|
Construction
|
992
|
|
|
1,448
|
|
|
—
|
|
|||
Commercial real estate
|
1,090
|
|
|
1,520
|
|
|
—
|
|
|||
Residential real estate
|
2,122
|
|
|
2,989
|
|
|
—
|
|
|||
Consumer
|
55
|
|
|
92
|
|
|
—
|
|
|||
Originated and other purchased loans
|
|
|
|
|
|
||||||
Commercial & Industrial
|
12,809
|
|
|
14,185
|
|
|
—
|
|
|||
Construction
|
7,078
|
|
|
16,327
|
|
|
—
|
|
|||
Commercial real estate
|
7,131
|
|
|
9,214
|
|
|
—
|
|
|||
Residential real estate
|
7,038
|
|
|
7,816
|
|
|
—
|
|
|||
Consumer
|
8
|
|
|
28
|
|
|
—
|
|
|||
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
|
11,243
|
|
|
16,297
|
|
|
3,327
|
|
|||
Construction
|
904
|
|
|
1,054
|
|
|
161
|
|
|||
Commercial real estate
|
2,053
|
|
|
2,053
|
|
|
734
|
|
|||
Residential real estate
|
5,599
|
|
|
5,631
|
|
|
1,275
|
|
|||
Consumer
|
1,543
|
|
|
1,546
|
|
|
606
|
|
|||
Total loans individually evaluated for impairment
|
$
|
60,562
|
|
|
$
|
81,498
|
|
|
$
|
6,103
|
|
|
Three Months Ended September 30,
|
||||||||||||||
|
2017
|
|
2016
|
||||||||||||
|
Average Recorded Investment
|
|
Interest Income Recognized
|
|
Average Recorded Investment
|
|
Interest Income Recognized
|
||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
||||||||
Purchased credit-impaired loans
|
|
|
|
|
|
|
|
||||||||
Commercial & Industrial
|
$
|
769
|
|
|
$
|
—
|
|
|
$
|
878
|
|
|
$
|
1
|
|
Construction
|
944
|
|
|
—
|
|
|
1,826
|
|
|
6
|
|
||||
Commercial real estate
|
998
|
|
|
—
|
|
|
1,608
|
|
|
12
|
|
||||
Residential real estate
|
1,659
|
|
|
5
|
|
|
2,368
|
|
|
6
|
|
||||
Consumer
|
46
|
|
|
1
|
|
|
17
|
|
|
—
|
|
||||
Originated and other purchased loans
|
|
|
|
|
|
|
|
||||||||
Commercial & Industrial
|
11,221
|
|
|
58
|
|
|
12,664
|
|
|
74
|
|
||||
Construction
|
6,568
|
|
|
70
|
|
|
5,395
|
|
|
48
|
|
||||
Commercial real estate
|
4,409
|
|
|
52
|
|
|
8,007
|
|
|
68
|
|
||||
Residential real estate
|
6,159
|
|
|
15
|
|
|
6,396
|
|
|
1
|
|
||||
Consumer
|
222
|
|
|
—
|
|
|
14
|
|
|
—
|
|
||||
With an allowance recorded:
|
|
|
|
|
|
|
|
||||||||
Purchased credit-impaired loans
|
|
|
|
|
|
|
|
||||||||
Commercial & Industrial
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Commercial real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Residential real estate
|
48
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Originated and other purchased loans
|
|
|
|
|
|
|
|
||||||||
Commercial & Industrial
|
4,808
|
|
|
47
|
|
|
16,391
|
|
|
51
|
|
||||
Construction
|
488
|
|
|
—
|
|
|
10,297
|
|
|
3
|
|
||||
Commercial real estate
|
2,260
|
|
|
12
|
|
|
2,229
|
|
|
3
|
|
||||
Residential real estate
|
5,823
|
|
|
31
|
|
|
5,148
|
|
|
43
|
|
||||
Consumer
|
—
|
|
|
—
|
|
|
1,393
|
|
|
—
|
|
||||
Total loans individually evaluated for impairment
|
$
|
46,422
|
|
|
$
|
291
|
|
|
$
|
74,631
|
|
|
$
|
316
|
|
|
|
Nine Months Ended September 30,
|
||||||||||||||
|
2017
|
|
2016
|
||||||||||||
|
Average Recorded Investment
|
|
Interest Income Recognized
|
|
Average Recorded Investment
|
|
Interest Income Recognized
|
||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
||||||||
Purchased credit-impaired loans
|
|
|
|
|
|
|
|
||||||||
Commercial & Industrial
|
$
|
801
|
|
|
$
|
—
|
|
|
$
|
878
|
|
|
$
|
1
|
|
Construction
|
963
|
|
|
—
|
|
|
1,826
|
|
|
6
|
|
||||
Commercial real estate
|
1,031
|
|
|
—
|
|
|
1,608
|
|
|
12
|
|
||||
Residential real estate
|
1,951
|
|
|
25
|
|
|
2,368
|
|
|
6
|
|
||||
Consumer
|
51
|
|
|
3
|
|
|
17
|
|
|
—
|
|
||||
Originated and other purchased loans
|
|
|
|
|
|
|
|
||||||||
Commercial & Industrial
|
11,321
|
|
|
173
|
|
|
12,839
|
|
|
224
|
|
||||
Construction
|
6,760
|
|
|
210
|
|
|
5,478
|
|
|
144
|
|
||||
Commercial real estate
|
5,199
|
|
|
155
|
|
|
8,101
|
|
|
204
|
|
||||
Residential real estate
|
6,217
|
|
|
46
|
|
|
6,466
|
|
|
4
|
|
||||
Consumer
|
223
|
|
|
—
|
|
|
14
|
|
|
—
|
|
||||
With an allowance recorded:
|
|
|
|
|
|
|
|
||||||||
Purchased credit-impaired loans
|
|
|
|
|
|
|
|
||||||||
Commercial & Industrial
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Commercial real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Residential real estate
|
51
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Originated and other purchased loans
|
|
|
|
|
|
|
|
||||||||
Commercial & Industrial
|
4,894
|
|
|
140
|
|
|
16,721
|
|
|
153
|
|
||||
Construction
|
496
|
|
|
—
|
|
|
14,485
|
|
|
7
|
|
||||
Commercial real estate
|
2,319
|
|
|
37
|
|
|
2,316
|
|
|
9
|
|
||||
Residential real estate
|
5,850
|
|
|
94
|
|
|
5,345
|
|
|
131
|
|
||||
Consumer
|
—
|
|
|
—
|
|
|
1,412
|
|
|
—
|
|
||||
Total loans individually evaluated for impairment
|
$
|
48,127
|
|
|
$
|
883
|
|
|
$
|
79,874
|
|
|
$
|
901
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Balance at beginning of period
|
$
|
6,472
|
|
|
$
|
—
|
|
|
$
|
9,030
|
|
|
$
|
—
|
|
Additions
|
—
|
|
|
11,584
|
|
|
—
|
|
|
11,584
|
|
||||
Accretion (1)
|
(594
|
)
|
|
(1,509
|
)
|
|
(2,630
|
)
|
|
(1,509
|
)
|
||||
Disposals (2)
|
(201
|
)
|
|
—
|
|
|
(723
|
)
|
|
—
|
|
||||
Balance at end of period
|
$
|
5,677
|
|
|
$
|
10,075
|
|
|
$
|
5,677
|
|
|
$
|
10,075
|
|
_______________________
|
|
|
|
|
|
|
|
||||||||
(1) Accretion amounts are reported in interest income.
|
|
|
|
|
|||||||||||
(2) Disposals represent the reduction of purchase accounting adjustments (loan discounts) due to the resolution of acquired loans at amounts less than the contractually-owed receivable.
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
Purchased credit-impaired loans:
|
|
|
|
||||
Commercial & Industrial
|
$
|
758
|
|
|
$
|
897
|
|
Construction
|
935
|
|
|
992
|
|
||
Commercial real estate
|
987
|
|
|
1,090
|
|
||
Residential real estate
|
1,318
|
|
|
1,549
|
|
||
Consumer
|
33
|
|
|
39
|
|
||
Total purchased credit-impaired loans
|
4,031
|
|
|
4,567
|
|
||
Originated and other purchased loans:
|
|
|
|
||||
Commercial & Industrial
|
5,782
|
|
|
11,805
|
|
||
Construction
|
2,027
|
|
|
2,830
|
|
||
Commercial real estate
|
2,257
|
|
|
3,686
|
|
||
Residential real estate
|
6,692
|
|
|
7,931
|
|
||
Consumer
|
213
|
|
|
1,551
|
|
||
Total originated and other purchased loans
|
16,971
|
|
|
27,803
|
|
||
Total nonaccrual loans
|
21,002
|
|
|
32,370
|
|
||
Other real estate owned
|
4,817
|
|
|
5,345
|
|
||
Total nonperforming assets
|
$
|
25,819
|
|
|
$
|
37,715
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
Nonaccrual loans
|
$
|
21,002
|
|
|
$
|
32,370
|
|
TDRs on accrual
|
24,513
|
|
|
27,603
|
|
||
Impaired loans on accrual
|
310
|
|
|
589
|
|
||
Total impaired loans
|
$
|
45,825
|
|
|
$
|
60,562
|
|
|
Commercial & Industrial
|
|
Construction
|
|
Commercial real estate
|
|
Residential real estate
|
|
Consumer
|
|
Total
|
||||||||||||
Balance at December 31, 2016
|
$
|
12,702
|
|
|
$
|
3,822
|
|
|
$
|
4,776
|
|
|
$
|
9,480
|
|
|
$
|
1,590
|
|
|
$
|
32,370
|
|
Transfers in
|
4,169
|
|
|
468
|
|
|
1,294
|
|
|
5,005
|
|
|
491
|
|
|
11,427
|
|
||||||
Transfers to other real estate owned
|
—
|
|
|
(75
|
)
|
|
—
|
|
|
(630
|
)
|
|
—
|
|
|
(705
|
)
|
||||||
Charge-offs
|
(5,196
|
)
|
|
(62
|
)
|
|
(742
|
)
|
|
(1,688
|
)
|
|
(838
|
)
|
|
(8,526
|
)
|
||||||
Payments
|
(4,343
|
)
|
|
(1,191
|
)
|
|
(1,587
|
)
|
|
(2,569
|
)
|
|
(980
|
)
|
|
(10,670
|
)
|
||||||
Return to accrual
|
(748
|
)
|
|
—
|
|
|
(497
|
)
|
|
(1,632
|
)
|
|
(17
|
)
|
|
(2,894
|
)
|
||||||
Loan type reclassification
|
(44
|
)
|
|
—
|
|
|
—
|
|
|
44
|
|
|
—
|
|
|
—
|
|
||||||
Balance at September 30, 2017
|
$
|
6,540
|
|
|
$
|
2,962
|
|
|
$
|
3,244
|
|
|
$
|
8,010
|
|
|
$
|
246
|
|
|
$
|
21,002
|
|
|
September 30, 2017
|
||||||||||||||||||
|
|
|
30-89 days
|
|
90+ days
|
|
Total
|
|
Total
|
||||||||||
|
Current
|
|
Past Due
|
|
Past Due
|
|
Past Due
|
|
Loans
|
||||||||||
Purchased credit-impaired loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial & Industrial
|
$
|
169
|
|
|
$
|
—
|
|
|
$
|
589
|
|
|
$
|
589
|
|
|
$
|
758
|
|
Construction
|
860
|
|
|
—
|
|
|
75
|
|
|
75
|
|
|
935
|
|
|||||
Commercial real estate
|
611
|
|
|
—
|
|
|
376
|
|
|
376
|
|
|
987
|
|
|||||
Residential real estate
|
1,200
|
|
|
87
|
|
|
331
|
|
|
418
|
|
|
1,618
|
|
|||||
Consumer
|
12
|
|
|
—
|
|
|
33
|
|
|
33
|
|
|
45
|
|
|||||
Total purchased credit-impaired loans
|
2,852
|
|
|
87
|
|
|
1,404
|
|
|
1,491
|
|
|
4,343
|
|
|||||
Originated and other purchased loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial & Industrial
|
760,670
|
|
|
567
|
|
|
4,511
|
|
|
5,078
|
|
|
765,748
|
|
|||||
Construction
|
271,539
|
|
|
161
|
|
|
1,806
|
|
|
1,967
|
|
|
273,506
|
|
|||||
Commercial real estate
|
651,756
|
|
|
—
|
|
|
2,258
|
|
|
2,258
|
|
|
654,014
|
|
|||||
Residential real estate
|
380,395
|
|
|
3,485
|
|
|
4,573
|
|
|
8,058
|
|
|
388,453
|
|
|||||
Consumer
|
336,474
|
|
|
105
|
|
|
208
|
|
|
313
|
|
|
336,787
|
|
|||||
Guaranteed student loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Deferred loan fees and related costs
|
1,289
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,289
|
|
|||||
Total originated and other purchased loans
|
2,402,123
|
|
|
4,318
|
|
|
13,356
|
|
|
17,674
|
|
|
2,419,797
|
|
|||||
Total loans
|
$
|
2,404,975
|
|
|
$
|
4,405
|
|
|
$
|
14,760
|
|
|
$
|
19,165
|
|
|
$
|
2,424,140
|
|
|
December 31, 2016
|
||||||||||||||||||
|
|
|
30-89 days
|
|
90+ days
|
|
Total
|
|
Total
|
||||||||||
|
Current
|
|
Past Due
|
|
Past Due
|
|
Past Due
|
|
Loans
|
||||||||||
Purchased credit-impaired loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial & Industrial
|
$
|
145
|
|
|
$
|
11
|
|
|
$
|
741
|
|
|
$
|
752
|
|
|
$
|
897
|
|
Construction
|
774
|
|
|
181
|
|
|
37
|
|
|
218
|
|
|
992
|
|
|||||
Commercial real estate
|
1,090
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,090
|
|
|||||
Residential real estate
|
1,261
|
|
|
297
|
|
|
564
|
|
|
861
|
|
|
2,122
|
|
|||||
Consumer
|
16
|
|
|
—
|
|
|
39
|
|
|
39
|
|
|
55
|
|
|||||
Total purchased credit-impaired loans
|
3,286
|
|
|
489
|
|
|
1,381
|
|
|
1,870
|
|
|
5,156
|
|
|||||
Originated and other purchased loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial & Industrial
|
883,531
|
|
|
1,714
|
|
|
9,810
|
|
|
11,524
|
|
|
895,055
|
|
|||||
Construction
|
254,058
|
|
|
53
|
|
|
2,609
|
|
|
2,662
|
|
|
256,720
|
|
|||||
Commercial real estate
|
580,355
|
|
|
2,911
|
|
|
1,371
|
|
|
4,282
|
|
|
584,637
|
|
|||||
Residential real estate
|
395,579
|
|
|
5,124
|
|
|
2,466
|
|
|
7,590
|
|
|
403,169
|
|
|||||
Consumer
|
272,147
|
|
|
1,630
|
|
|
176
|
|
|
1,806
|
|
|
273,953
|
|
|||||
Guaranteed student loans
|
30,909
|
|
|
5,562
|
|
|
7,572
|
|
|
13,134
|
|
|
44,043
|
|
|||||
Deferred loan fees and related costs
|
1,323
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,323
|
|
|||||
Total originated and other purchased loans
|
2,417,902
|
|
|
16,994
|
|
|
24,004
|
|
|
40,998
|
|
|
2,458,900
|
|
|||||
Total loans
|
$
|
2,421,188
|
|
|
$
|
17,483
|
|
|
$
|
25,385
|
|
|
$
|
42,868
|
|
|
$
|
2,464,056
|
|
|
September 30, 2017
|
||||||||||||||
|
|
|
Special
Mention |
|
|
|
|
||||||||
|
Pass
|
|
|
Substandard
|
|
Total
|
|||||||||
Purchased credit-impaired loans:
|
|
|
|
|
|
|
|
||||||||
Commercial & Industrial
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
758
|
|
|
$
|
758
|
|
Construction
|
—
|
|
|
—
|
|
|
935
|
|
|
935
|
|
||||
Commercial real estate
|
—
|
|
|
—
|
|
|
987
|
|
|
987
|
|
||||
Residential real estate
|
—
|
|
|
203
|
|
|
1,415
|
|
|
1,618
|
|
||||
Consumer
|
—
|
|
|
—
|
|
|
45
|
|
|
45
|
|
||||
Total purchased credit-impaired loans
|
—
|
|
|
203
|
|
|
4,140
|
|
|
4,343
|
|
||||
Originated and other purchased loans:
|
|
|
|
|
|
|
|
||||||||
Commercial & Industrial
|
745,020
|
|
|
14,351
|
|
|
6,377
|
|
|
765,748
|
|
||||
Construction
|
264,271
|
|
|
6,781
|
|
|
2,454
|
|
|
273,506
|
|
||||
Commercial real estate
|
644,781
|
|
|
3,083
|
|
|
6,150
|
|
|
654,014
|
|
||||
Residential real estate
|
354,201
|
|
|
19,961
|
|
|
14,291
|
|
|
388,453
|
|
||||
Consumer
|
331,937
|
|
|
4,625
|
|
|
225
|
|
|
336,787
|
|
||||
Deferred loan fees and related costs
|
1,289
|
|
|
—
|
|
|
—
|
|
|
1,289
|
|
||||
Total originated and other purchased loans
|
2,341,499
|
|
|
48,801
|
|
|
29,497
|
|
|
2,419,797
|
|
||||
Total loans
|
$
|
2,341,499
|
|
|
$
|
49,004
|
|
|
$
|
33,637
|
|
|
$
|
2,424,140
|
|
|
December 31, 2016
|
||||||||||||||
|
|
|
Special
Mention |
|
|
|
|
||||||||
|
Pass
|
|
|
Substandard
|
|
Total
|
|||||||||
Purchased credit-impaired loans:
|
|
|
|
|
|
|
|
||||||||
Commercial & Industrial
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
897
|
|
|
$
|
897
|
|
Construction
|
—
|
|
|
—
|
|
|
992
|
|
|
992
|
|
||||
Commercial real estate
|
—
|
|
|
—
|
|
|
1,090
|
|
|
1,090
|
|
||||
Residential real estate
|
—
|
|
|
—
|
|
|
2,122
|
|
|
2,122
|
|
||||
Consumer
|
—
|
|
|
—
|
|
|
55
|
|
|
55
|
|
||||
Total purchased credit-impaired loans
|
—
|
|
|
—
|
|
|
5,156
|
|
|
5,156
|
|
||||
Originated and other purchased loans:
|
|
|
|
|
|
|
|
||||||||
Commercial & Industrial
|
873,180
|
|
|
9,391
|
|
|
12,484
|
|
|
895,055
|
|
||||
Construction
|
247,335
|
|
|
6,460
|
|
|
2,925
|
|
|
256,720
|
|
||||
Commercial real estate
|
571,781
|
|
|
3,689
|
|
|
9,167
|
|
|
584,637
|
|
||||
Residential real estate
|
366,940
|
|
|
21,646
|
|
|
14,583
|
|
|
403,169
|
|
||||
Consumer
|
270,919
|
|
|
1,467
|
|
|
1,567
|
|
|
273,953
|
|
||||
Guaranteed student loans
|
44,043
|
|
|
—
|
|
|
—
|
|
|
44,043
|
|
||||
Deferred loan fees and related costs
|
1,323
|
|
|
—
|
|
|
—
|
|
|
1,323
|
|
||||
Total originated and other purchased loans
|
2,375,521
|
|
|
42,653
|
|
|
40,726
|
|
|
2,458,900
|
|
||||
Total loans
|
$
|
2,375,521
|
|
|
$
|
42,653
|
|
|
$
|
45,882
|
|
|
$
|
2,464,056
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||
|
|
|
Recorded
Investment |
|
|
|
Recorded
Investment |
||||||
|
Number of Contracts
|
|
|
Number of Contracts
|
|
||||||||
Commercial & Industrial
|
9
|
|
|
$
|
10,636
|
|
|
13
|
|
|
$
|
13,067
|
|
Construction
|
5
|
|
|
5,065
|
|
|
5
|
|
|
5,225
|
|
||
Commercial real estate
|
6
|
|
|
5,026
|
|
|
7
|
|
|
5,498
|
|
||
Residential real estate
|
11
|
|
|
4,763
|
|
|
14
|
|
|
5,082
|
|
||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Total
|
31
|
|
|
$
|
25,490
|
|
|
39
|
|
|
$
|
28,872
|
|
|
Accruing
|
|
Nonaccruing
|
|
Total
|
||||||
Balance at December 31, 2016
|
$
|
27,603
|
|
|
$
|
1,269
|
|
|
$
|
28,872
|
|
Charge-offs
|
—
|
|
|
(7
|
)
|
|
(7
|
)
|
|||
Payments
|
(3,090
|
)
|
|
(285
|
)
|
|
(3,375
|
)
|
|||
New TDR designation
|
—
|
|
|
—
|
|
|
—
|
|
|||
Release TDR designation
|
—
|
|
|
—
|
|
|
—
|
|
|||
Transfer
|
—
|
|
|
—
|
|
|
—
|
|
|||
Balance at September 30, 2017
|
$
|
24,513
|
|
|
$
|
977
|
|
|
$
|
25,490
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
Performing TDRs:
|
|
|
|
||||
Commercial & Industrial
|
$
|
9,861
|
|
|
$
|
12,247
|
|
Construction
|
5,002
|
|
|
5,152
|
|
||
Commercial real estate
|
5,026
|
|
|
5,498
|
|
||
Residential real estate
|
4,624
|
|
|
4,706
|
|
||
Consumer
|
—
|
|
|
—
|
|
||
Total performing TDRs
|
24,513
|
|
|
27,603
|
|
||
Nonperforming TDRs:
|
|
|
|
||||
Commercial & Industrial
|
775
|
|
|
820
|
|
||
Construction
|
63
|
|
|
73
|
|
||
Commercial real estate
|
—
|
|
|
—
|
|
||
Residential real estate
|
139
|
|
|
376
|
|
||
Consumer
|
—
|
|
|
—
|
|
||
Total nonperforming TDRs
|
977
|
|
|
1,269
|
|
||
Total TDRs
|
$
|
25,490
|
|
|
$
|
28,872
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
Amortizable core deposit intangible:
|
|
|
|
||||
Gross amount
|
$
|
4,006
|
|
|
$
|
4,006
|
|
Accumulated amortization
|
(613
|
)
|
|
(219
|
)
|
||
Net core deposit intangible
|
$
|
3,393
|
|
|
$
|
3,787
|
|
Goodwill
|
$
|
26,931
|
|
|
$
|
26,931
|
|
|
Amount
|
||
Balance at December 31, 2016
|
$
|
5,345
|
|
Transfers in (via foreclosure)
|
1,304
|
|
|
Sales
|
(1,769
|
)
|
|
Gain on sales
|
74
|
|
|
Impairments
|
(137
|
)
|
|
Balance at September 30, 2017
|
$
|
4,817
|
|
|
September 30, 2017
|
|
September 30, 2016
|
||||
Balance at beginning of year
|
$
|
3,031
|
|
|
$
|
9,875
|
|
Impairments
|
137
|
|
|
1,320
|
|
||
Charge-offs
|
(1,776
|
)
|
|
(8,137
|
)
|
||
Balance at end of period
|
$
|
1,392
|
|
|
$
|
3,058
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Loss (gain) on sales
|
$
|
(82
|
)
|
|
$
|
(52
|
)
|
|
$
|
(74
|
)
|
|
$
|
(1,208
|
)
|
Impairments
|
34
|
|
|
737
|
|
|
137
|
|
|
1,320
|
|
||||
Operating expenses
|
12
|
|
|
104
|
|
|
147
|
|
|
276
|
|
||||
Total noninterest expense
|
$
|
(36
|
)
|
|
$
|
789
|
|
|
$
|
210
|
|
|
$
|
388
|
|
|
|
|
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
|
||||||||||||
|
|
Assets
|
Sheets
|
Sheets
|
Instruments
|
Received
|
Amount
|
||||||||||||
Derivative assets:
|
|
|
|
|
|
|
|
||||||||||||
September 30, 2017
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swap agreements
|
|
$
|
1,813
|
|
$
|
—
|
|
$
|
1,813
|
|
$
|
128
|
|
$
|
—
|
|
$
|
1,685
|
|
December 31, 2016
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swap agreements
|
|
1,223
|
|
—
|
|
1,223
|
|
53
|
|
—
|
|
1,170
|
|
|
|
|
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
|
||||||||||||
|
|
Liabilities
|
Sheets
|
Sheets
|
Instruments
|
Requirement
|
Amount
|
||||||||||||
Derivative liabilities:
|
|
|
|
|
|
|
|
||||||||||||
September 30, 2017
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swap agreements
|
|
$
|
1,722
|
|
$
|
—
|
|
$
|
1,722
|
|
$
|
128
|
|
$
|
808
|
|
$
|
786
|
|
December 31, 2016
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swap agreements
|
|
1,226
|
|
—
|
|
1,226
|
|
53
|
|
341
|
|
832
|
|
|
Nine Months Ended September 30, 2017
|
||||
|
Tax
|
Rate
|
|||
Effective tax rate from continuing operations:
|
|
|
|||
Income tax at statutory rate
|
$
|
9,853
|
|
35.00
|
%
|
Tax-exempt income
|
(750
|
)
|
(2.66
|
)%
|
|
Nondeductible expenses
|
40
|
|
0.14
|
%
|
|
Other
|
(146
|
)
|
(0.53
|
)%
|
|
Income tax provision from continuing operations
|
$
|
8,997
|
|
31.95
|
%
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
September 30, 2017
|
|
September 30, 2016
|
|
September 30, 2017
|
|
September 30, 2016
|
||||
Weighted average shares outstanding, basic
|
23,209,041
|
|
|
21,005,458
|
|
|
23,184,307
|
|
|
18,462,161
|
|
Dilutive effect of warrants
|
75,718
|
|
|
50,247
|
|
|
72,251
|
|
|
47,263
|
|
Dilutive effect of equity awards
|
234,593
|
|
|
65,145
|
|
|
218,614
|
|
|
51,191
|
|
Dilutive shares
|
310,311
|
|
|
115,392
|
|
|
290,865
|
|
|
98,454
|
|
Weighted average shares outstanding, diluted
|
23,519,351
|
|
|
21,120,850
|
|
|
23,475,172
|
|
|
18,560,615
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30, 2017
|
|
September 30, 2016
|
|
September 30, 2017
|
|
September 30, 2016
|
||||||||
Net Income:
|
|
|
|
|
|
|
|
||||||||
Net income from continuing operations
|
$
|
7,165
|
|
|
$
|
47,501
|
|
|
$
|
19,156
|
|
|
$
|
50,402
|
|
Net (loss) income from discontinued operations
|
(7
|
)
|
|
363
|
|
|
(68
|
)
|
|
1,467
|
|
||||
Net income attributable to Xenith Bankshares
|
$
|
7,158
|
|
|
$
|
47,864
|
|
|
$
|
19,088
|
|
|
$
|
51,869
|
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share:
|
|
|
|
|
|
|
|
||||||||
Earnings per share from continuing operations
|
$
|
0.31
|
|
|
$
|
2.26
|
|
|
$
|
0.83
|
|
|
$
|
2.74
|
|
Earnings per share from discontinued operations
|
$
|
—
|
|
|
$
|
0.02
|
|
|
$
|
—
|
|
|
$
|
0.07
|
|
Earnings per share attributable to Xenith Bankshares
|
$
|
0.31
|
|
|
$
|
2.28
|
|
|
$
|
0.82
|
|
|
$
|
2.81
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per share:
|
|
|
|
|
|
|
|
||||||||
Earnings per share from continuing operations
|
$
|
0.30
|
|
|
$
|
2.25
|
|
|
$
|
0.82
|
|
|
$
|
2.72
|
|
Earnings per share from discontinued operations
|
$
|
—
|
|
|
$
|
0.02
|
|
|
$
|
—
|
|
|
$
|
0.07
|
|
Earnings per share attributable to Xenith Bankshares
|
$
|
0.30
|
|
|
$
|
2.27
|
|
|
$
|
0.81
|
|
|
$
|
2.79
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
Commercial lines of credit
|
$
|
391,645
|
|
|
$
|
372,083
|
|
Construction
|
172,571
|
|
|
113,364
|
|
||
Commercial real estate
|
36,858
|
|
|
44,790
|
|
||
Residential real estate
|
91,976
|
|
|
93,981
|
|
||
Consumer
|
8,102
|
|
|
11,108
|
|
||
Letters of credit
|
24,935
|
|
|
20,476
|
|
||
Total commitments
|
$
|
726,087
|
|
|
$
|
655,802
|
|
|
September 30, 2017
|
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||
Assets
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|||||||||
Investment securities available for sale
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities
|
|
|
|
|
|
|
|
|
|||||||
Agencies
|
$
|
127,253
|
|
|
$
|
—
|
|
|
$
|
127,253
|
|
|
$
|
—
|
|
Collateralized
|
62,984
|
|
|
—
|
|
|
62,984
|
|
|
—
|
|
||||
Collateralized mortgage obligations
|
27,059
|
|
|
—
|
|
|
27,059
|
|
|
—
|
|
||||
Asset-backed securities
|
6,611
|
|
|
—
|
|
|
6,611
|
|
|
—
|
|
||||
Municipals
|
|
|
|
|
|
|
|
||||||||
Tax-exempt
|
62,799
|
|
|
—
|
|
|
62,799
|
|
|
—
|
|
||||
Taxable
|
17,680
|
|
|
—
|
|
|
17,680
|
|
|
—
|
|
||||
Corporate bonds
|
976
|
|
|
—
|
|
|
976
|
|
|
—
|
|
||||
Equity securities
|
406
|
|
|
307
|
|
|
—
|
|
|
99
|
|
||||
Total securities available for sale
|
305,768
|
|
|
307
|
|
|
305,362
|
|
|
99
|
|
||||
Interest rate swaps
|
1,813
|
|
|
—
|
|
|
1,813
|
|
|
—
|
|
||||
Investments in rabbi trust
|
1,800
|
|
|
1,800
|
|
|
—
|
|
|
—
|
|
||||
Total assets
|
$
|
309,381
|
|
|
$
|
2,107
|
|
|
$
|
307,175
|
|
|
$
|
99
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
$
|
1,722
|
|
|
$
|
—
|
|
|
$
|
1,722
|
|
|
$
|
—
|
|
Total liabilities
|
$
|
1,722
|
|
|
$
|
—
|
|
|
$
|
1,722
|
|
|
$
|
—
|
|
|
December 31, 2016
|
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||
Assets
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|||||||||
Investment securities available for sale
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities
|
|
|
|
|
|
|
|
||||||||
Agencies
|
$
|
134,890
|
|
|
$
|
—
|
|
|
$
|
134,890
|
|
|
$
|
—
|
|
Collateralized
|
62,753
|
|
|
—
|
|
|
62,753
|
|
|
—
|
|
||||
Collateralized mortgage obligations
|
19,810
|
|
|
—
|
|
|
19,810
|
|
|
—
|
|
||||
Asset-backed securities
|
14,758
|
|
|
—
|
|
|
14,758
|
|
|
—
|
|
||||
Municipals
|
|
|
|
|
|
|
|
||||||||
Tax-exempt
|
64,755
|
|
|
—
|
|
|
64,755
|
|
|
—
|
|
||||
Taxable
|
17,676
|
|
|
—
|
|
|
17,676
|
|
|
—
|
|
||||
Corporate bonds
|
984
|
|
|
—
|
|
|
984
|
|
|
—
|
|
||||
Equity securities
|
1,817
|
|
|
1,718
|
|
|
—
|
|
|
99
|
|
||||
Total securities available for sale
|
317,443
|
|
|
1,718
|
|
|
315,626
|
|
|
99
|
|
||||
Derivative loan commitments
|
126
|
|
|
—
|
|
|
—
|
|
|
126
|
|
||||
Interest rate swaps
|
1,223
|
|
|
—
|
|
|
1,223
|
|
|
—
|
|
||||
Investments in rabbi trust
|
1,804
|
|
|
1,804
|
|
|
—
|
|
|
—
|
|
||||
Total assets
|
$
|
320,596
|
|
|
$
|
3,522
|
|
|
$
|
316,849
|
|
|
$
|
225
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
$
|
1,226
|
|
|
$
|
—
|
|
|
$
|
1,226
|
|
|
$
|
—
|
|
Total liabilities
|
$
|
1,226
|
|
|
$
|
—
|
|
|
$
|
1,226
|
|
|
$
|
—
|
|
|
Activity in Level 3
|
|
Activity in Level 3
|
||||||||||||
|
Fair Value Measurements
|
|
Fair Value Measurements
|
||||||||||||
|
Nine Months Ended September 30, 2017
|
|
Year Ended December 31, 2016
|
||||||||||||
|
Investment
Securities Available for Sale |
|
Derivative
Loan Commitments |
|
Investment
Securities Available for Sale |
|
Derivative
Loan Commitments |
||||||||
|
|
|
|
||||||||||||
|
|
|
|
||||||||||||
Beginning of period balance
|
$
|
99
|
|
|
$
|
126
|
|
|
$
|
99
|
|
|
$
|
1,020
|
|
Unrealized gains included in:
|
|
|
|
|
|
|
|
||||||||
Earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Purchases
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Reclassification from level 3 to level 1
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Issuances
|
—
|
|
|
—
|
|
|
—
|
|
|
470
|
|
||||
Settlements
|
—
|
|
|
(126
|
)
|
|
—
|
|
|
(1,364
|
)
|
||||
End of period balance
|
$
|
99
|
|
|
$
|
—
|
|
|
$
|
99
|
|
|
$
|
126
|
|
|
Assets
Measured at Fair Value |
|
Fair Value Measurements at
|
||||||||||||
|
|
September 30, 2017 Using
|
|||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|||||||||
Impaired loans
|
$
|
39,541
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
39,541
|
|
Other real estate owned and repossessed assets
|
4,817
|
|
|
—
|
|
|
—
|
|
|
4,817
|
|
|
Assets
Measured at Fair Value |
|
Fair Value Measurements at
|
||||||||||||
|
|
December 31, 2016 Using
|
|||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|||||||||
Impaired loans
|
$
|
49,378
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
49,378
|
|
Other real estate owned and repossessed assets
|
5,345
|
|
|
—
|
|
|
—
|
|
|
5,345
|
|
|
|
|
|
|
|
|
|
|
|
Significant Unobservable
|
|
Significant Unobservable
|
|
|
Fair Value at
|
|
Inputs by
|
|
Inputs as of
|
|
|
September 30, 2017
|
|
Valuation Technique
|
|
September 30, 2017
|
|
Impaired loans
|
39,541
|
|
|
Appraised value
|
|
9%
|
|
|
|
Average discounts to reflect current
|
|
|
|
|
|
|
market conditions, estimated ultimate
|
|
|
|
|
|
|
collectability, and estimated costs to sell
|
|
|
|
Other real estate owned
|
4,817
|
|
|
Appraised value
|
|
10%
|
|
|
|
Weighted average discounts to reflect
|
|
|
|
|
|
|
current market conditions, abbreviated
|
|
|
|
|
|
|
holding period and estimated costs to sell
|
|
|
|
September 30, 2017
|
||||||||||||||||||
|
Carrying
Amount |
|
Fair
Value |
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||||
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||
Financial Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans, net (1)
|
$
|
2,407,875
|
|
|
$
|
2,412,741
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,412,741
|
|
Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
2,605,390
|
|
|
2,603,279
|
|
|
—
|
|
|
2,603,279
|
|
|
—
|
|
|||||
FHLB borrowings
|
105,000
|
|
|
105,000
|
|
|
—
|
|
|
105,000
|
|
|
—
|
|
|||||
Other borrowings
|
39,197
|
|
|
65,276
|
|
|
—
|
|
|
65,276
|
|
|
—
|
|
|
December 31, 2016
|
||||||||||||||||||
|
Carrying
Amount |
|
Fair
Value |
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||||
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||
Financial Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans, net (1)
|
$
|
2,442,116
|
|
|
$
|
2,448,581
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,448,581
|
|
Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
2,571,970
|
|
|
2,573,070
|
|
|
—
|
|
|
2,573,070
|
|
|
—
|
|
|||||
FHLB borrowings
|
172,000
|
|
|
172,000
|
|
|
—
|
|
|
172,000
|
|
|
—
|
|
|||||
Other borrowings
|
38,813
|
|
|
65,303
|
|
|
—
|
|
|
65,303
|
|
|
—
|
|
•
|
Our future success is dependent on our ability to compete effectively in the highly competitive banking industry;
|
•
|
Economic, market or operational developments may negatively impact our ability to maintain required capital levels or otherwise negatively impact our financial condition;
|
•
|
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 do not pay 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;
|
•
|
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;
|
•
|
Before the Union Merger (defined below) may be completed, which is expected to occur during early January 2018, Union Bankshares Corporation ("Union") and the Company must meet certain customary conditions as set forth in the Union Merger Agreement (defined below). These conditions may delay the completion of the Union Merger or not be met; both of which could have an adverse effect on our operations and/or stock price;
|
•
|
The Union Merger may distract management from their other responsibilities, which could have an adverse effect on our operations;
|
•
|
The significant portion of our loan portfolio is in commercial real estate, residential real estate and construction loans, which may expose us to greater risk of loss;
|
•
|
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, our financial condition and the market price of our common stock could be materially adversely affected;
|
•
|
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;
|
•
|
We may face increasing deposit-pricing pressures, which may, among other things, reduce our ability to grow and our profitability;
|
•
|
Our profitability will be jeopardized if we are unable to successfully manage interest rate risk;
|
•
|
Our success is largely dependent on attracting and retaining key management team members;
|
•
|
We may not be able to realize our deferred income tax assets, requiring us to record a valuation allowance against our deferred tax assets. Additionally, a reduction in corporate income tax rates would require us to reduce our deferred tax assets. Both of these events could adversely affect the market price of our common stock;
|
•
|
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; and
|
•
|
The obligations from our mortgage banking operations could be more costly than anticipated and could adversely impact our results of operations.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net interest margin (1)
|
3.51%
|
|
3.59%
|
|
3.51%
|
|
3.43%
|
Return on average assets ("ROAA") (2)
|
0.89%
|
|
6.67%
|
|
0.8%
|
|
2.24%
|
Return on average common equity ("ROAE") (3)
|
5.86%
|
|
51.42%
|
|
5.35%
|
|
16.18%
|
Average common equity to average assets (4)
|
15.14%
|
|
12.97%
|
|
14.87%
|
|
13.84%
|
Efficiency ratio (5)
|
64%
|
|
126%
|
|
67%
|
|
103%
|
_______________________
|
|
|
|
|
|
|
|
(1) Net interest margin is net interest income divided by average interest-earning assets. For the purposes of the calculation, tax-exempt interest income from tax-exempt municipal securities is computed on a taxable-equivalent yield basis. Average interest-earning assets are presented within the average balances, income and expenses, yields and rates table below.
|
|||||||
(2) Return on average assets is net income (from continuing and discontinued operations) divided by average total assets. Average total assets are presented within the average balances, income and expenses, yields and rates table below.
|
|||||||
(3) Return on average equity is net income (from continuing and discontinued operations) divided by average shareholders' equity before non-controlling interest.
|
|||||||
(4) Average equity to average assets is average shareholders' equity before 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 decreased $11.4 million to September 30, 2017 from December 31, 2016, primarily attributable to a $20.5
million decline in gross loans, including loans reported as held for sale, a $11.7 million reduction in available-for-sale investment securities, and a $10.6 million reduction in the assets of discontinued operations, partially offset by higher cash balances of $38.2 million.
|
•
|
Gross loans, including loans reported as held for sale, declined $20.5 million, to September 30, 2017 from
December 31, 2016
; however, excluding reductions in loans associated with mortgage warehouse participations arrangements of $66.8 million and our guaranteed student loan portfolio of $24.6 million, loans increased $71.0 million over this period. Our guaranteed student loan portfolio is reported as held for sale as of September 30, 2017, as we had entered into an agreement to sell the remaining portfolio, which occurred in October 2017.
|
•
|
Allowance for loan losses decreased $5.7 million to $16.3 million at
September 30, 2017
from December 31, 2016, primarily due to charge-offs of specific reserves on several problem loans.
|
•
|
Deposits increased $33.4 million to September 30, 2017 from
December 31, 2016
, primarily due to core deposit growth.
|
•
|
Net interest income was $25.2 million and $74.8 million for the three and nine months ended September 30, 2017, respectively, compared to $23.0 million and $52.7 million for the
three and nine
months ended September 30, 2016, respectively. Higher net interest income in the 2017 periods was primarily attributable to higher average interest-earning assets, which were $2.86 billion and $2.87 billion in the three- and nine-month periods of 2017, respectively, compared to average interest-earning assets of $2.59 billion and $2.09 billion in the respective 2016 periods. Average interest-earning assets due to the Legacy Xenith Merger is reflected only from the effective date of the Legacy Xenith Merger, July 29, 2016.
|
•
|
Net interest margin was 3.51% for both the three and nine months ended
September 30, 2017
, and 3.56% and 3.40% for the three and nine months ended
September 30, 2016
, respectively. Net interest margin in the 2017 and 2016 periods include accretion of acquired loan discounts further discussed below.
|
•
|
Noninterest income for the
three and nine
months ended
September 30, 2017
was $4.2 million and $11.1 million, respectively, compared to $2.9 million and $8.0 million, respectively, for the same periods in 2016. Higher noninterest income in 2017 periods was primarily due to income from net gains on the sale of investment securities, income from our back-to-back interest rate swap program, and Visa check card income.
|
•
|
Noninterest expense for the
three and nine
months ended
September 30, 2017
was $18.8 million and $57.7 million, respectively, compared to $32.5 million and $62.4 million, respectively, for the same periods in 2016. Amounts in the three- and nine-month periods of 2017 included merger-related expenses of $930 thousand and $2.9 million, respectively, while noninterest expense in the same periods of 2016 included $12.9 million and $15.6 million, respectively, of merger-related expenses. Merger-related expenses in the 2017 periods were primarily in connection with the Union Merger, while merger-related expenses in the 2016 periods were in connection with the Legacy Xenith Merger.
|
•
|
Income before income taxes from continuing operations for the three and nine months ended September 30, 2017 was $10.6 million and $28.2 million, respectively, while loss before income taxes from continuing operations for the same periods in 2016 was $17.3 million and $12.4 million, respectively.
|
•
|
Provision for income taxes from continuing operations was $3.5 million and $9.0 million for the three and nine months ended September 30, 2017, respectively, compared to a benefit from income taxes of $64.8 million and $62.8 million, respectively, for the same periods in 2016. The benefit from income taxes in the 2016 periods was due to the reversal of substantially all of the remaining valuation allowance on our net deferred tax asset in the third quarter of 2016.
|
•
|
At September 30, 2017, our ratio of nonperforming assets to total assets was 0.79% compared to 1.15% as of December 31, 2016; our ratio of nonperforming loans to gross loans was 0.87% compared to 1.31% as of December 31, 2016, and the ratio of our allowance for loan losses to nonaccrual loans was 77.5% compared to 67.8% as of December 31, 2016. Other real estate owned and repossessed assets was $4.8 million at September 30, 2017, a reduction of $528 thousand from December 31, 2016.
|
•
|
Regulatory capital ratios of the Company and the Bank were considered "well capitalized" under the risk-based capital standards as of September 30, 2017.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net income:
|
|
|
|
|
|
|
|
||||||||
Net income from continuing operations
|
$
|
7,165
|
|
|
$
|
47,501
|
|
|
$
|
19,156
|
|
|
$
|
50,402
|
|
Net (loss) income from discontinued operations
|
(7
|
)
|
|
363
|
|
|
(68
|
)
|
|
1,467
|
|
||||
Net income attributable to Xenith Bankshares
|
$
|
7,158
|
|
|
$
|
47,864
|
|
|
$
|
19,088
|
|
|
$
|
51,869
|
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share:
|
|
|
|
|
|
|
|
||||||||
Earnings per share from continuing operations
|
$
|
0.31
|
|
|
$
|
2.26
|
|
|
$
|
0.83
|
|
|
$
|
2.74
|
|
Earnings per share from discontinued operations
|
$
|
—
|
|
|
$
|
0.02
|
|
|
$
|
—
|
|
|
$
|
0.07
|
|
Earnings per share attributable to Xenith Bankshares
|
$
|
0.31
|
|
|
$
|
2.28
|
|
|
$
|
0.82
|
|
|
$
|
2.81
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per share:
|
|
|
|
|
|
|
|
||||||||
Earnings per share from continuing operations
|
$
|
0.30
|
|
|
$
|
2.25
|
|
|
$
|
0.82
|
|
|
$
|
2.75
|
|
Earnings per share from discontinued operations
|
$
|
—
|
|
|
$
|
0.02
|
|
|
$
|
—
|
|
|
$
|
0.07
|
|
Earnings per share attributable to Xenith Bankshares
|
$
|
0.30
|
|
|
$
|
2.27
|
|
|
$
|
0.81
|
|
|
$
|
2.79
|
|
|
Average Balances, Income and Expenses, Yields and Rates
As of and for the Three Months Ended September 30, |
||||||||||||||||||||||||||||||||
|
2017
|
|
2016
|
|
2017 Compared to 2016
|
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
|
|
|
|
|
||||||||||||||||
|
|
|
Interest
|
|
Average
|
|
|
|
Interest
|
|
Average
|
|
Income/
|
|
Variance
|
||||||||||||||||||
|
Average
|
|
Income/
|
|
Yield/
|
|
Average
|
|
Income/
|
|
Yield/
|
|
Expense
|
|
Attributable to (2)
|
||||||||||||||||||
|
Balances (1)
|
|
Expense (7) (8) (9)
|
|
Rate
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Variance
|
|
Rate
|
|
Volume
|
||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Loans (3)
|
$
|
2,412,871
|
|
|
$
|
28,168
|
|
|
4.63
|
%
|
|
$
|
2,201,627
|
|
|
$
|
25,639
|
|
|
4.63
|
%
|
|
$
|
2,529
|
|
|
$
|
63
|
|
|
$
|
2,466
|
|
Investment securities
|
319,069
|
|
|
1,792
|
|
|
2.23
|
%
|
|
287,998
|
|
|
1,594
|
|
|
2.20
|
%
|
|
198
|
|
|
24
|
|
|
174
|
|
|||||||
Restricted equity securities
|
21,550
|
|
|
312
|
|
|
5.74
|
%
|
|
19,856
|
|
|
251
|
|
|
5.03
|
%
|
|
61
|
|
|
38
|
|
|
23
|
|
|||||||
Overnight funds sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
and due from FRB
|
101,335
|
|
|
233
|
|
|
0.91
|
%
|
|
79,706
|
|
|
94
|
|
|
0.47
|
%
|
|
139
|
|
|
108
|
|
|
31
|
|
|||||||
Interest-bearing deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
in other banks
|
7,171
|
|
|
25
|
|
|
1.38
|
%
|
|
3,850
|
|
|
2
|
|
|
0.21
|
%
|
|
23
|
|
|
20
|
|
|
3
|
|
|||||||
Total interest-earning assets
|
2,861,996
|
|
|
30,530
|
|
|
4.23
|
%
|
|
2,593,037
|
|
|
27,580
|
|
|
4.23
|
%
|
|
2,950
|
|
|
253
|
|
|
2,697
|
|
|||||||
Noninterest-earning assets
|
337,599
|
|
|
|
|
|
|
261,883
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total assets
|
$
|
3,199,595
|
|
|
|
|
|
|
$
|
2,854,920
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities and Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest-bearing demand deposits
|
$
|
1,158,260
|
|
|
$
|
1,815
|
|
|
0.62
|
%
|
|
$
|
980,423
|
|
|
$
|
1,384
|
|
|
0.56
|
%
|
|
$
|
431
|
|
|
$
|
163
|
|
|
$
|
268
|
|
Savings deposits
|
93,879
|
|
|
63
|
|
|
0.27
|
%
|
|
78,461
|
|
|
40
|
|
|
0.20
|
%
|
|
23
|
|
|
14
|
|
|
9
|
|
|||||||
Time deposits
|
778,835
|
|
|
2,264
|
|
|
1.15
|
%
|
|
808,132
|
|
|
2,169
|
|
|
1.07
|
%
|
|
95
|
|
|
176
|
|
|
(81
|
)
|
|||||||
Total interest-bearing deposits
|
2,030,974
|
|
|
4,142
|
|
|
0.81
|
%
|
|
1,867,016
|
|
|
3,593
|
|
|
0.77
|
%
|
|
549
|
|
|
353
|
|
|
196
|
|
|||||||
Borrowings
|
137,920
|
|
|
1,037
|
|
|
2.98
|
%
|
|
164,089
|
|
|
760
|
|
|
1.84
|
%
|
|
277
|
|
|
414
|
|
|
(137
|
)
|
|||||||
Total interest-bearing liabilities
|
2,168,894
|
|
|
5,179
|
|
|
0.95
|
%
|
|
2,031,105
|
|
|
4,353
|
|
|
0.85
|
%
|
|
826
|
|
|
767
|
|
|
59
|
|
|||||||
Noninterest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Demand deposits
|
525,603
|
|
|
|
|
|
|
|
431,583
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other liabilities
|
20,816
|
|
|
|
|
|
|
|
21,225
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total noninterest-bearing liabilities
|
546,419
|
|
|
|
|
|
|
|
452,808
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total liabilities
|
2,715,313
|
|
|
|
|
|
|
|
2,483,913
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Shareholders' equity
|
484,282
|
|
|
|
|
|
|
|
371,007
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total liabilities and shareholders' equity
|
$
|
3,199,595
|
|
|
|
|
|
|
|
$
|
2,854,920
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income (5)
|
|
|
$
|
25,351
|
|
|
|
|
|
|
|
$
|
23,227
|
|
|
|
|
|
$
|
2,124
|
|
|
$
|
(514
|
)
|
|
$
|
2,638
|
|
||||
Net interest spread (4)
|
|
|
|
|
3.28
|
%
|
|
|
|
|
|
3.38
|
%
|
|
|
|
|
|
|
||||||||||||||
Net interest margin (6)
|
|
|
|
|
3.51
|
%
|
|
|
|
|
|
3.56
|
%
|
|
|
|
|
|
|
||||||||||||||
_________________________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
(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 2017 and 2016 includes approximately $594 thousand and $1.5 million, respectively, in accretion related to acquired loans.
|
|
|
|
|
|||||||||||||||||||||||||||||
(9) Interest income from loans includes fees of $470 thousand and $257 thousand for the three months ended September 30, 2017 and 2016, respectively.
|
|
|
|
|
|
Average Balances, Income and Expenses, Yields and Rates
As of and for the Nine Months Ended September 30, |
||||||||||||||||||||||||||||||||
|
2017
|
|
2016
|
|
2017 Compared to 2016
|
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
|
|
|
|
|
||||||||||||||||
|
|
|
Interest
|
|
Average
|
|
|
|
Interest
|
|
Average
|
|
Income/
|
|
Variance
|
||||||||||||||||||
|
Average
|
|
Income/
|
|
Yield/
|
|
Average
|
|
Income/
|
|
Yield/
|
|
Expense
|
|
Attributable to (2)
|
||||||||||||||||||
|
Balances (1)
|
|
Expense (7) (8) (9)
|
|
Rate
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Variance
|
|
Rate
|
|
Volume
|
||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Loans (3)
|
$
|
2,403,346
|
|
|
$
|
82,719
|
|
|
4.60
|
%
|
|
$
|
1,787,481
|
|
|
$
|
59,216
|
|
|
4.43
|
%
|
|
$
|
23,503
|
|
|
$
|
2,387
|
|
|
$
|
21,116
|
|
Investment securities
|
319,367
|
|
|
5,702
|
|
|
2.39
|
%
|
|
228,734
|
|
|
3,988
|
|
|
2.33
|
%
|
|
1,714
|
|
|
98
|
|
|
1,616
|
|
|||||||
Restricted equity securities
|
20,857
|
|
|
909
|
|
|
5.83
|
%
|
|
14,629
|
|
|
570
|
|
|
5.20
|
%
|
|
339
|
|
|
74
|
|
|
265
|
|
|||||||
Overnight funds sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
and due from FRB
|
115,143
|
|
|
685
|
|
|
0.80
|
%
|
|
56,836
|
|
|
176
|
|
|
0.41
|
%
|
|
509
|
|
|
241
|
|
|
268
|
|
|||||||
Interest-bearing deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
in other banks
|
6,560
|
|
|
49
|
|
|
0.10
|
%
|
|
1,752
|
|
|
3
|
|
|
0.23
|
%
|
|
46
|
|
|
25
|
|
|
21
|
|
|||||||
Total interest-earning assets
|
2,865,273
|
|
|
90,064
|
|
|
4.20
|
%
|
|
2,089,432
|
|
|
63,953
|
|
|
4.09
|
%
|
|
26,111
|
|
|
2,825
|
|
|
23,286
|
|
|||||||
Noninterest-earning assets
|
341,075
|
|
|
|
|
|
|
|
|
226,891
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total assets
|
$
|
3,206,348
|
|
|
|
|
|
|
$
|
2,316,323
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities and Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing demand deposits
|
$
|
1,156,000
|
|
|
$
|
5,061
|
|
|
0.59
|
%
|
|
$
|
785,757
|
|
|
$
|
3,054
|
|
|
0.52
|
%
|
|
$
|
2,007
|
|
|
$
|
425
|
|
|
$
|
1,582
|
|
Savings deposits
|
91,858
|
|
|
180
|
|
|
0.26
|
%
|
|
69,071
|
|
|
81
|
|
|
0.16
|
%
|
|
99
|
|
|
66
|
|
|
33
|
|
|||||||
Time deposits
|
825,100
|
|
|
6,890
|
|
|
1.12
|
%
|
|
689,925
|
|
|
5,746
|
|
|
1.11
|
%
|
|
1,144
|
|
|
15
|
|
|
1,129
|
|
|||||||
Total interest-bearing deposits
|
2,072,958
|
|
|
12,131
|
|
|
0.78
|
%
|
|
1,544,753
|
|
|
8,881
|
|
|
0.77
|
%
|
|
3,250
|
|
|
506
|
|
|
2,744
|
|
|||||||
Borrowings
|
125,032
|
|
|
2,722
|
|
|
2.91
|
%
|
|
92,603
|
|
|
1,815
|
|
|
2.62
|
%
|
|
907
|
|
|
218
|
|
|
689
|
|
|||||||
Total interest-bearing liabilities
|
2,197,990
|
|
|
14,853
|
|
|
0.90
|
%
|
|
1,637,356
|
|
|
10,696
|
|
|
0.87
|
%
|
|
4,157
|
|
|
724
|
|
|
3,433
|
|
|||||||
Noninterest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Demand deposits
|
511,533
|
|
|
|
|
|
|
|
340,305
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other liabilities
|
20,097
|
|
|
|
|
|
|
|
17,609
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total noninterest-bearing liabilities
|
531,630
|
|
|
|
|
|
|
|
357,914
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total liabilities
|
2,729,620
|
|
|
|
|
|
|
|
1,995,270
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Shareholders' equity
|
476,728
|
|
|
|
|
|
|
|
321,053
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total liabilities and shareholders' equity
|
$
|
3,206,348
|
|
|
|
|
|
|
|
$
|
2,316,323
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income (5)
|
|
|
|
$
|
75,211
|
|
|
|
|
|
|
|
|
$
|
53,257
|
|
|
|
|
|
$
|
21,954
|
|
|
$
|
2,101
|
|
|
$
|
19,853
|
|
||
Net interest spread (4)
|
|
|
|
|
|
3.30
|
%
|
|
|
|
|
|
|
3.22
|
%
|
|
|
|
|
|
|
||||||||||||
Net interest margin (6)
|
|
|
|
|
3.51
|
%
|
|
|
|
|
|
3.40
|
%
|
|
|
|
|
|
|
||||||||||||||
_________________________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
(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 2017 and 2016 includes approximately $2.6 million and $1.5 million, respectively, in accretion related to acquired loans.
|
|
|
|
|
|||||||||||||||||||||||||||||
(9) Interest income from loans includes fees of $1.4 million and $632 thousand for the nine months ended September 30, 2017 and 2016, respectively.
|
|
Three Months Ended September 30,
|
|
|
||||||||||
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
||||||
Provision for loan losses
|
$
|
—
|
|
|
$
|
10,685
|
|
|
$
|
(10,685
|
)
|
|
n/m
|
|
|
|
|
|
|
|
|
||||||
n/m - Rate not meaningful
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
|
||||||||||
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
||||||
Provision for loan losses
|
$
|
9
|
|
|
$
|
10,704
|
|
|
$
|
(10,695
|
)
|
|
n/m
|
|
|
|
|
|
|
|
|
||||||
n/m - Rate not meaningful
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
|||||||||||
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
|||||||
Service charges on deposit accounts
|
$
|
1,258
|
|
|
$
|
1,191
|
|
|
$
|
67
|
|
|
5.6
|
%
|
Earnings from bank-owned life insurance
|
426
|
|
|
395
|
|
|
31
|
|
|
7.8
|
%
|
|||
Gain on sale of loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
Net gain on sale of investment securities available for sale
|
977
|
|
|
—
|
|
|
977
|
|
|
100.0
|
%
|
|||
Visa check card income
|
806
|
|
|
709
|
|
|
97
|
|
|
13.7
|
%
|
|||
Other
|
705
|
|
|
575
|
|
|
130
|
|
|
22.6
|
%
|
|||
Total noninterest income
|
$
|
4,172
|
|
|
$
|
2,870
|
|
|
$
|
1,302
|
|
|
45.4
|
%
|
|
Nine Months Ended September 30,
|
|
|
|||||||||||
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
|||||||
Service charges on deposit accounts
|
$
|
3,561
|
|
|
$
|
3,447
|
|
|
$
|
114
|
|
|
3.3
|
%
|
Earnings from bank-owned life insurance
|
1,327
|
|
|
1,046
|
|
|
281
|
|
|
26.9
|
%
|
|||
Gain on sale of loans
|
38
|
|
|
—
|
|
|
38
|
|
|
100.0
|
%
|
|||
Net gain on sale of investment securities available for sale
|
977
|
|
|
15
|
|
|
962
|
|
|
6,413.3
|
%
|
|||
Visa check card income
|
2,399
|
|
|
2,056
|
|
|
343
|
|
|
16.7
|
%
|
|||
Other
|
2,822
|
|
|
1,430
|
|
|
1,392
|
|
|
97.3
|
%
|
|||
Total noninterest income
|
$
|
11,124
|
|
|
$
|
7,994
|
|
|
$
|
3,130
|
|
|
39.2
|
%
|
|
Three Months Ended September 30,
|
|
|
|||||||||||
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
|||||||
Salaries and employee benefits
|
$
|
9,914
|
|
|
$
|
9,880
|
|
|
$
|
34
|
|
|
0.3
|
%
|
Professional and consultant fees
|
830
|
|
|
978
|
|
|
(148
|
)
|
|
(15.1
|
)%
|
|||
Occupancy
|
1,802
|
|
|
1,594
|
|
|
208
|
|
|
13.0
|
%
|
|||
FDIC insurance
|
349
|
|
|
679
|
|
|
(330
|
)
|
|
(48.6
|
)%
|
|||
Data processing and technology
|
1,367
|
|
|
1,446
|
|
|
(79
|
)
|
|
(5.5
|
)%
|
|||
Problem loan and repossessed asset costs
|
(1
|
)
|
|
219
|
|
|
(220
|
)
|
|
(100.5
|
)%
|
|||
Impairments on and (gains) and losses on sales of other real estate owned and repossessed assets
|
(48
|
)
|
|
685
|
|
|
(733
|
)
|
|
(107.0
|
)%
|
|||
Equipment
|
322
|
|
|
309
|
|
|
13
|
|
|
4.2
|
%
|
|||
Board fees
|
350
|
|
|
493
|
|
|
(143
|
)
|
|
(29.0
|
)%
|
|||
Advertising and marketing
|
158
|
|
|
398
|
|
|
(240
|
)
|
|
(60.3
|
)%
|
|||
Merger-related
|
930
|
|
|
12,910
|
|
|
(11,980
|
)
|
|
(92.8
|
)%
|
|||
Other
|
2,806
|
|
|
2,944
|
|
|
(138
|
)
|
|
(4.7
|
)%
|
|||
Total noninterest expense
|
$
|
18,779
|
|
|
$
|
32,535
|
|
|
$
|
(13,756
|
)
|
|
(42.3
|
)%
|
|
Nine Months Ended September 30,
|
|
|
|||||||||||
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
|||||||
Salaries and employee benefits
|
$
|
30,186
|
|
|
$
|
24,990
|
|
|
$
|
5,196
|
|
|
20.8
|
%
|
Professional and consultant fees
|
2,792
|
|
|
2,101
|
|
|
691
|
|
|
32.9
|
%
|
|||
Occupancy
|
5,586
|
|
|
4,428
|
|
|
1,158
|
|
|
26.2
|
%
|
|||
FDIC insurance
|
1,498
|
|
|
1,524
|
|
|
(26
|
)
|
|
(1.7
|
)%
|
|||
Data processing and technology
|
3,909
|
|
|
3,985
|
|
|
(76
|
)
|
|
(1.9
|
)%
|
|||
Problem loan and repossessed asset costs
|
306
|
|
|
420
|
|
|
(114
|
)
|
|
(27.1
|
)%
|
|||
Impairments on and (gains) and losses on sales of other real estate owned and repossessed assets
|
63
|
|
|
112
|
|
|
(49
|
)
|
|
(43.8
|
)%
|
|||
Equipment
|
1,049
|
|
|
812
|
|
|
237
|
|
|
29.2
|
%
|
|||
Board fees
|
596
|
|
|
1,133
|
|
|
(537
|
)
|
|
(47.4
|
)%
|
|||
Advertising and marketing
|
667
|
|
|
503
|
|
|
164
|
|
|
32.6
|
%
|
|||
Merger-related
|
2,895
|
|
|
15,555
|
|
|
(12,660
|
)
|
|
(81.4
|
)%
|
|||
Other
|
8,202
|
|
|
6,854
|
|
|
1,348
|
|
|
19.7
|
%
|
|||
Total noninterest expense
|
$
|
57,749
|
|
|
$
|
62,417
|
|
|
$
|
(4,668
|
)
|
|
(7.5
|
)%
|
|
Three Months Ended September 30,
|
|
|
||||||||
|
2017
|
2016
|
$ Change
|
% Change
|
|||||||
Provision (benefit) for income taxes - continuing operations
|
$
|
3,453
|
|
$
|
(64,840
|
)
|
$
|
68,293
|
|
(105.3
|
)%
|
|
Nine Months Ended September 30,
|
|
|
||||||||
|
2017
|
2016
|
$ Change
|
% Change
|
|||||||
Provision (benefit) for income taxes - continuing operations
|
$
|
8,997
|
|
$
|
(62,794
|
)
|
$
|
71,791
|
|
(114.3
|
)%
|
|
September 30, 2017
|
||||||||||||
|
Amortized Cost
|
|
Fair Value
|
|
Weighted Average Life in Years
|
|
Weighted Average Yield
|
||||||
Mortgage-backed securities
|
|
|
|
|
|
|
|
||||||
Agencies
|
$
|
127,298
|
|
|
$
|
127,253
|
|
|
4.25
|
|
|
2.20
|
%
|
Collateralized
|
63,716
|
|
|
62,984
|
|
|
3.64
|
|
|
1.85
|
%
|
||
Collateralized mortgage obligations
|
27,194
|
|
|
27,059
|
|
|
5.37
|
|
|
2.43
|
%
|
||
Asset-backed securities
|
6,686
|
|
|
6,611
|
|
|
4.98
|
|
|
2.84
|
%
|
||
Municipals
|
|
|
|
|
|
|
|
||||||
Tax-exempt
|
63,486
|
|
|
62,799
|
|
|
7.15
|
|
|
2.99
|
%
|
||
Taxable
|
17,958
|
|
|
17,681
|
|
|
4.52
|
|
|
2.00
|
%
|
||
Corporate bonds
|
975
|
|
|
975
|
|
|
1.00
|
|
|
2.98
|
%
|
||
Equity securities
|
141
|
|
|
406
|
|
|
—
|
|
|
—
|
%
|
||
Total securities available for sale
|
$
|
307,454
|
|
|
$
|
305,768
|
|
|
4.99
|
|
|
2.30
|
%
|
|
December 31, 2016
|
||||||||||||
|
Amortized Cost
|
|
Fair Value
|
|
Weighted Average Life in Years
|
|
Weighted Average Yield
|
||||||
Mortgage-backed securities
|
|
|
|
|
|
|
|
||||||
Agencies
|
$
|
135,054
|
|
|
$
|
134,890
|
|
|
4.18
|
|
|
2.04
|
%
|
Collateralized
|
63,837
|
|
|
62,753
|
|
|
4.24
|
|
|
1.84
|
%
|
||
Collateralized mortgage obligations
|
19,626
|
|
|
19,810
|
|
|
2.65
|
|
|
2.69
|
%
|
||
Asset-backed securities
|
14,866
|
|
|
14,758
|
|
|
5.58
|
|
|
2.60
|
%
|
||
Municipals
|
|
|
|
|
|
|
|
||||||
Tax-exempt
|
67,738
|
|
|
64,755
|
|
|
7.87
|
|
|
2.85
|
%
|
||
Taxable
|
18,105
|
|
|
17,676
|
|
|
5.47
|
|
|
2.00
|
%
|
||
Corporate bonds
|
983
|
|
|
984
|
|
|
1.70
|
|
|
2.62
|
%
|
||
Equity securities
|
969
|
|
|
1,817
|
|
|
—
|
|
|
—
|
%
|
||
Total securities available for sale
|
$
|
321,178
|
|
|
$
|
317,443
|
|
|
5.01
|
|
|
2.25
|
%
|
|
September 30, 2017
|
|||||||||||||||||||||||||||||||||
|
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
|
|||||||||||||||
Mortgage-backed securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Agencies
|
$
|
4,721
|
|
|
2.23
|
%
|
|
$
|
91,532
|
|
|
2.03
|
%
|
|
$
|
28,679
|
|
|
2.54
|
%
|
|
$
|
2,321
|
|
|
3.19
|
%
|
|
$
|
127,253
|
|
|
2.20
|
%
|
Collateralized
|
993
|
|
|
1.21
|
%
|
|
46,475
|
|
|
1.84
|
%
|
|
15,516
|
|
|
1.93
|
%
|
|
—
|
|
|
—
|
%
|
|
62,984
|
|
|
1.85
|
%
|
|||||
Collateralized mortgage obligations
|
164
|
|
|
3.60
|
%
|
|
6,010
|
|
|
2.31
|
%
|
|
20,885
|
|
|
2.46
|
%
|
|
—
|
|
|
—
|
%
|
|
27,059
|
|
|
2.43
|
%
|
|||||
Asset-backed securities
|
—
|
|
|
—
|
%
|
|
2,681
|
|
|
3.09
|
%
|
|
3,930
|
|
|
2.66
|
%
|
|
—
|
|
|
—
|
%
|
|
6,611
|
|
|
2.84
|
%
|
|||||
Municipals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Taxable
|
—
|
|
|
—
|
%
|
|
10,516
|
|
|
1.90
|
%
|
|
7,165
|
|
|
2.16
|
%
|
|
—
|
|
|
—
|
%
|
|
17,681
|
|
|
2.00
|
%
|
|||||
Tax exempt
|
253
|
|
|
0.81
|
%
|
|
3,435
|
|
|
2.05
|
%
|
|
56,567
|
|
|
3.08
|
%
|
|
2,544
|
|
|
2.69
|
%
|
|
62,799
|
|
|
2.99
|
%
|
|||||
Corporate bonds
|
975
|
|
|
2.98
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
975
|
|
|
2.98
|
%
|
|||||
Equity securities
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
406
|
|
|
—
|
%
|
|
406
|
|
|
—
|
%
|
|||||
Total securities available for sale
|
$
|
7,106
|
|
|
2.25
|
%
|
|
$
|
160,649
|
|
|
2.02
|
%
|
|
$
|
132,742
|
|
|
2.65
|
%
|
|
$
|
5,271
|
|
|
2.95
|
%
|
|
$
|
305,768
|
|
|
2.30
|
%
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||
|
Amount
|
|
Percent of Total
|
|
Amount
|
|
Percent of Total
|
||||||
Commercial & Industrial
|
$
|
766,506
|
|
|
31.6
|
%
|
|
$
|
895,952
|
|
|
36.4
|
%
|
Construction
|
274,441
|
|
|
11.4
|
%
|
|
257,712
|
|
|
10.5
|
%
|
||
Commercial real estate
|
655,001
|
|
|
27.0
|
%
|
|
585,727
|
|
|
23.8
|
%
|
||
Residential real estate
|
390,071
|
|
|
16.1
|
%
|
|
405,291
|
|
|
16.4
|
%
|
||
Consumer
|
336,832
|
|
|
13.9
|
%
|
|
274,008
|
|
|
11.1
|
%
|
||
Guaranteed student loans
|
—
|
|
|
—
|
%
|
|
44,043
|
|
|
1.8
|
%
|
||
Deferred loan fees and related costs
|
1,289
|
|
|
—
|
%
|
|
1,323
|
|
|
—
|
%
|
||
Total loans
|
2,424,140
|
|
|
100.0
|
%
|
|
2,464,056
|
|
|
100.0
|
%
|
||
Allowance for loan losses
|
(16,265
|
)
|
|
|
|
(21,940
|
)
|
|
|
||||
Total loans, net of allowance
|
$
|
2,407,875
|
|
|
|
|
$
|
2,442,116
|
|
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||
|
Amount
|
|
Percent of loans in each category to total loans
|
|
Amount
|
|
Percent of loans in each category to total loans
|
||||||
Balance at end of period applicable to:
|
|
|
|
|
|
|
|
||||||
Commercial & Industrial
|
$
|
2,381
|
|
|
31.6
|
%
|
|
$
|
5,816
|
|
|
36.4
|
%
|
Construction
|
1,613
|
|
|
11.4
|
%
|
|
1,551
|
|
|
10.5
|
%
|
||
Commercial real estate
|
3,320
|
|
|
27.0
|
%
|
|
2,410
|
|
|
23.8
|
%
|
||
Residential real estate
|
3,135
|
|
|
16.1
|
%
|
|
5,205
|
|
|
16.4
|
%
|
||
Consumer
|
1,876
|
|
|
13.9
|
%
|
|
1,967
|
|
|
11.1
|
%
|
||
Guaranteed student loans
|
—
|
|
|
—
|
%
|
|
—
|
|
|
1.8
|
%
|
||
Unallocated qualitative
|
3,940
|
|
|
—
|
%
|
|
4,991
|
|
|
—
|
%
|
||
Total allowance for loan losses
|
$
|
16,265
|
|
|
100.0
|
%
|
|
$
|
21,940
|
|
|
100.0
|
%
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
Allowance for loan losses:
|
|
|
|
||||
Specific component
|
$
|
2,381
|
|
|
$
|
6,103
|
|
General component
|
9,944
|
|
|
10,846
|
|
||
Unallocated qualitative component
|
3,940
|
|
|
4,991
|
|
||
Total
|
$
|
16,265
|
|
|
$
|
21,940
|
|
Impaired loans
|
$
|
45,825
|
|
|
$
|
60,562
|
|
Non-impaired loans
|
2,378,315
|
|
|
2,403,494
|
|
||
Total loans
|
$
|
2,424,140
|
|
|
$
|
2,464,056
|
|
|
|
|
|
||||
Specific component as % of impaired loans
|
5.20
|
%
|
|
10.08
|
%
|
||
General component as % of non-impaired loans
|
0.42
|
%
|
|
0.45
|
%
|
|
September 30, 2017
|
|
December 31, 2016
|
||
Nonperforming loans with no allowance due to previous charge-offs as a percentage of total loans
|
0.30
|
%
|
|
0.33
|
%
|
Nonperforming loans with no allowance due to previous charge-offs as a percentage of nonperforming loans
|
35.03
|
%
|
|
24.88
|
%
|
Charge-off rate for nonperforming loans with no allowance due to previous charge-offs
|
63.75
|
%
|
|
62.59
|
%
|
Coverage ratio net of nonperforming loans with no allowance due to previous charge-offs
|
119.14
|
%
|
|
90.23
|
%
|
Total allowance divided by total loans less nonperforming loans with no allowance due to previous charge-offs
|
0.67
|
%
|
|
0.89
|
%
|
Allowance for individually impaired loans divided by impaired loans for which an allowance has been provided
|
17.85
|
%
|
|
28.59
|
%
|
Nonperforming assets as a percentage of total loans
|
1.07
|
%
|
|
1.53
|
%
|
Nonperforming assets as a percentage of total assets
|
0.79
|
%
|
|
1.15
|
%
|
Net charge-offs as a percentage of average loans (year-to-date)
|
0.24
|
%
|
|
0.65
|
%
|
Allowance for loan losses as a percentage of total loans
|
0.67
|
%
|
|
0.89
|
%
|
Allowance for loan losses to nonaccrual loans
|
77.45
|
%
|
|
67.78
|
%
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
Loans 90 days past due and still accruing interest (1)
|
$
|
—
|
|
|
$
|
—
|
|
Nonaccrual loans
|
21,002
|
|
|
32,370
|
|
||
Other real estate owned and repossessed assets, net
|
4,817
|
|
|
5,345
|
|
||
Total nonperforming assets
|
$
|
25,819
|
|
|
$
|
37,715
|
|
|
|
|
|
||||
(1) Excludes GSLs.
|
|
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||
|
Amount
|
|
Rate
|
|
Amount
|
|
Rate
|
||||||
Noninterest-bearing demand deposits
|
$
|
511,533
|
|
|
—
|
%
|
|
$
|
382,613
|
|
|
—
|
%
|
Interest-bearing deposits:
|
|
|
|
|
|
|
|
||||||
Demand and money market
|
1,156,000
|
|
|
0.59
|
%
|
|
873,046
|
|
|
0.53
|
%
|
||
Savings accounts
|
91,858
|
|
|
0.26
|
%
|
|
73,033
|
|
|
0.17
|
%
|
||
Time deposits $100 or greater
|
410,923
|
|
|
1.15
|
%
|
|
340,259
|
|
|
1.17
|
%
|
||
Time deposits less than $100
|
414,177
|
|
|
1.08
|
%
|
|
396,982
|
|
|
1.04
|
%
|
||
Total interest-bearing deposits
|
2,072,958
|
|
|
0.78
|
%
|
|
1,683,320
|
|
|
0.76
|
%
|
||
Total average deposits
|
$
|
2,584,491
|
|
|
0.62
|
%
|
|
$
|
2,065,933
|
|
|
0.62
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Percent of
|
|||||||||||
|
Within 3 Months
|
|
3-6 Months
|
|
6-12 Months
|
|
Over 12 Months
|
|
Total
|
|
Total Deposits
|
|||||||||||
Time deposits
|
$
|
130,391
|
|
|
$
|
100,452
|
|
|
$
|
83,262
|
|
|
$
|
113,950
|
|
|
$
|
428,055
|
|
|
16.43
|
%
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
|
Period-End Balance
|
Highest Month-End Balance
|
Average Balance
|
Weighted Average Rate
|
|
Period-End Balance
|
Highest Month-End Balance
|
Average Balance
|
Weighted Average Rate
|
||||||||||||||
FHLB borrowings
|
$
|
105,000
|
|
$
|
105,000
|
|
$
|
86,040
|
|
0.92
|
%
|
|
$
|
172,000
|
|
$
|
197,500
|
|
$
|
99,125
|
|
0.43
|
%
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||
|
Xenith Bank
|
Xenith Bankshares
|
|
Xenith Bank
|
Xenith Bankshares
|
||||||||
Common equity Tier 1 capital
|
$
|
343,256
|
|
$
|
363,579
|
|
|
$
|
314,768
|
|
$
|
343,519
|
|
Tier 1 capital
|
343,256
|
|
366,784
|
|
|
314,768
|
|
343,518
|
|
||||
Total risk-based capital
|
359,521
|
|
391,643
|
|
|
336,712
|
|
374,082
|
|
||||
Risk-weighted assets
|
2,822,708
|
|
2,843,595
|
|
|
2,821,029
|
|
2,849,714
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||
|
Xenith
|
|
Xenith
|
|
Regulatory
|
|
Well
|
|
Xenith
|
|
Xenith
|
|
Regulatory
|
|
Well
|
|
Bank
|
|
Bankshares
|
|
Minimum
|
|
Capitalized
|
|
Bank
|
|
Bankshares
|
|
Minimum
|
|
Capitalized
|
Common equity Tier 1 capital ratio
|
12.16%
|
|
12.79%
|
|
4.50%
|
|
> 6.50%
|
|
11.16%
|
|
12.05%
|
|
4.50%
|
|
> 6.50%
|
Tier 1 leverage ratio
|
11.24%
|
|
11.93%
|
|
4.00%
|
|
> 5.00%
|
|
9.94%
|
|
10.74%
|
|
4.40%
|
|
> 5.00%
|
Tier 1 risk-based capital ratio
|
12.16%
|
|
12.90%
|
|
6.00%
|
|
> 8.00%
|
|
11.16%
|
|
12.05%
|
|
6.00%
|
|
> 8.00%
|
Total risk-based capital ratio
|
12.74%
|
|
13.77%
|
|
8.00%
|
|
> 10.00%
|
|
11.94%
|
|
13.13%
|
|
8.00%
|
|
> 10.00%
|
|
September 30, 2017
|
||||||||||||
|
Change in Net Interest Income
|
||||||||||||
|
Instantaneous Rate Shock Scenario
|
|
Ramped Rate Shock Scenario
|
||||||||||
|
$
|
|
%
|
|
$
|
|
%
|
||||||
Change in Interest Rates:
|
|
|
|
|
|
|
|
|
|||||
+
200 basis points
|
$
|
3,934
|
|
|
3.90
|
%
|
|
$
|
1,389
|
|
|
1.38
|
%
|
+
100 basis points
|
$
|
2,559
|
|
|
2.54
|
%
|
|
$
|
726
|
|
|
0.72
|
%
|
–100 basis points
|
$
|
(5,709
|
)
|
|
(5.66
|
)%
|
|
$
|
(958
|
)
|
|
(0.95
|
)%
|
–200 basis points
|
$
|
(7,342
|
)
|
|
(7.28
|
)%
|
|
$
|
(1,227
|
)
|
|
(1.22
|
)%
|
Exhibit Number
|
|
Description
|
|
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
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XBRL Taxonomy Extension Presentation Linkbase Document.
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XENITH BANKSHARES, INC.
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(Registrant)
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DATE:
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November 9, 2017
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/s/ T. Gaylon Layfield, III
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T. Gaylon Layfield, III
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Chief Executive Officer
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/s/ Thomas W. Osgood
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Thomas W. Osgood
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Chief Financial Officer
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1 Year Xenith Bankshares, Inc. NEW Chart |
1 Month Xenith Bankshares, Inc. NEW Chart |
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