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Section 1: 10-Q (10-Q)

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Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

[X]QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2019              OR

[   ]TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                     to                    

Commission File Number:   001‑35589

FS BANCORP, INC.

(Exact name of registrant as specified in its charter)

 

 

 

Washington

 

45‑4585178

(State or other jurisdiction of incorporation or organization)

 

(IRS Employer Identification No.)

 

6920 220th Street SW, Mountlake Terrace, Washington  98043

(Address of principal executive offices; Zip Code)

(425) 771‑5299

(Registrant’s telephone number, including area code)

None

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

 

 

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $.01 per share

FSBW

The NASDAQ Stock Market LLC

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes [X]          No [   ]

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes [X]          No [   ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b‑2 of the Exchange Act.

 

 

 

Large accelerated filer [   ]

 

Accelerated filer [ X ]

Non-accelerated filer [   ]

 

Smaller reporting company [ X ]

Emerging growth company [  ]

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b‑2 of the Exchange Act).    Yes [   ]          No [X]

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:  As of October 31, 2019, there were 4,452,872 outstanding shares of the registrant’s common stock.

 

 

Table of Contents

FS Bancorp, Inc.

Form 10‑Q

Table of Contents

 

 

 

 

 

 

    

 

    

Page Number

PART I

 

FINANCIAL INFORMATION

 

 

 

 

 

 

 

Item 1. 

 

Financial Statements

 

 

 

 

 

 

 

 

 

Consolidated Balance Sheets at September 30, 2019 and December 31, 2018 (Unaudited)

 

 

 

 

 

 

 

 

Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2019 and 2018 (Unaudited)

 

 

 

 

 

 

 

 

Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2019 and 2018 (Unaudited)

 

 

 

 

 

 

 

 

Consolidated Statements of Changes in Stockholders’ Equity for the Three and Nine Months Ended September 30, 2019 and 2018 (Unaudited)

 

6 - 7 

 

 

 

 

 

 

 

Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2019 and 2018 (Unaudited)

 

8 - 9 

 

 

 

 

 

 

 

Notes to Consolidated Financial Statements

 

10 - 47 

 

 

 

 

 

Item 2. 

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

48 - 61 

 

 

 

 

 

Item 3. 

 

Quantitative and Qualitative Disclosures About Market Risk

 

61 

 

 

 

 

 

Item 4. 

 

Controls and Procedures

 

61 

 

 

 

 

 

PART II 

 

OTHER INFORMATION

 

62 

 

 

 

 

 

Item 1. 

 

Legal Proceedings

 

62 

 

 

 

 

 

Item 1A. 

 

Risk Factors

 

62 

 

 

 

 

 

Item 2. 

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

62 

 

 

 

 

 

Item 3. 

 

Defaults Upon Senior Securities

 

63 

 

 

 

 

 

Item 4. 

 

Mine Safety Disclosures

 

63 

 

 

 

 

 

Item 5. 

 

Other Information

 

63 

 

 

 

 

 

Item 6. 

 

Exhibits

 

64 - 65 

 

 

 

 

 

SIGNATURES 

 

 

 

66 

 

As used in this report, the terms “we,” “our,” “us,” “Company” and “FS Bancorp” refer to FS Bancorp, Inc. and its consolidated subsidiary, 1st Security Bank of Washington, unless the context indicates otherwise. When we refer to “Bank” in this report, we are referring to 1st Security Bank of Washington, the wholly owned subsidiary of FS Bancorp.

 

 

2

Table of Contents

Item 1. Financial Statements

FS BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except share amounts) (Unaudited)

 

 

 

 

 

 

 

 

 

    

September 30, 

    

December 31, 

ASSETS

 

2019

 

2018

Cash and due from banks

 

$

15,979

 

$

9,408

Interest-bearing deposits at other financial institutions

 

 

46,915

 

 

23,371

Total cash and cash equivalents

 

 

62,894

 

 

32,779

Certificates of deposit at other financial institutions

 

 

24,296

 

 

22,074

Securities available-for-sale, at fair value

 

 

106,038

 

 

97,205

Loans held for sale, at fair value

 

 

80,619

 

 

51,195

Loans receivable, net

 

 

1,311,288

 

 

1,312,519

Accrued interest receivable

 

 

5,723

 

 

5,761

Premises and equipment, net

 

 

29,066

 

 

29,110

Operating lease right-of-use (“ROU”) assets

 

 

4,713

 

 

 —

Federal Home Loan Bank (“FHLB”) stock, at cost

 

 

7,995

 

 

9,887

Other real estate owned (“OREO”)

 

 

178

 

 

689

Bank owned life insurance (“BOLI”), net

 

 

35,136

 

 

34,485

Servicing rights, held at the lower of cost or fair value

 

 

11,193

 

 

10,429

Goodwill

 

 

2,312

 

 

2,312

Core deposit intangible, net

 

 

5,647

 

 

6,217

Other assets

 

 

7,899

 

 

6,982

TOTAL ASSETS

 

$

1,694,997

 

$

1,621,644

LIABILITIES

 

 

  

 

 

  

Deposits:

 

 

  

 

 

  

Noninterest-bearing accounts

 

$

281,073

 

$

234,532

Interest-bearing accounts

 

 

1,105,529

 

 

1,039,687

Total deposits

 

 

1,386,602

 

 

1,274,219

Borrowings

 

 

76,864

 

 

137,149

Subordinated note:

 

 

 

 

 

 

Principal amount

 

 

10,000

 

 

10,000

Unamortized debt issuance costs

 

 

(120)

 

 

(135)

Total subordinated note less unamortized debt issuance costs

 

 

9,880

 

 

9,865

Operating lease liabilities

 

 

4,881

 

 

 —

Deferred tax liability, net

 

 

1,029

 

 

361

Other liabilities

 

 

21,484

 

 

20,012

Total liabilities

 

 

1,500,740

 

 

1,441,606

COMMITMENTS AND CONTINGENCIES (NOTE 10)

 

 

  

 

 

  

STOCKHOLDERS’ EQUITY

 

 

  

 

 

  

Preferred stock, $.01 par value; 5,000,000 shares authorized; none issued or outstanding

 

 

 —

 

 

 —

Common stock, $.01 par value; 45,000,000 shares authorized; 4,452,872 and 4,492,478 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively

 

 

44

 

 

45

Additional paid-in capital

 

 

88,608

 

 

91,466

Retained earnings

 

 

105,672

 

 

90,854

Accumulated other comprehensive income (loss), net of tax

 

 

583

 

 

(1,479)

Unearned shares – Employee Stock Ownership Plan (“ESOP”)

 

 

(650)

 

 

(848)

Total stockholders’ equity

 

 

194,257

 

 

180,038

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

1,694,997

 

$

1,621,644

 

See accompanying notes to these consolidated financial statements.

3

Table of Contents

FS BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per share amounts) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Three Months Ended

    

Nine Months Ended

 

 

September 30, 

 

September 30, 

 

    

2019

    

2018

    

2019

    

2018

INTEREST INCOME

 

 

 

 

 

 

 

 

Loans receivable, including fees

 

$

21,466

 

$

14,624

 

$

63,677

 

$

40,015

Interest and dividends on investment securities, cash and cash equivalents, and certificates of deposit at other financial institutions

 

 

1,245

 

 

959

 

 

3,710

 

 

2,578

Total interest and dividend income

 

 

22,711

 

 

15,583

 

 

67,387

 

 

42,593

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

4,223

 

 

1,850

 

 

11,989

 

 

4,525

Borrowings

 

 

582

 

 

704

 

 

1,932

 

 

1,280

Subordinated note

 

 

171

 

 

171

 

 

508

 

 

508

Total interest expense

 

 

4,976

 

 

2,725

 

 

14,429

 

 

6,313

NET INTEREST INCOME

 

 

17,735

 

 

12,858

 

 

52,958

 

 

36,280

PROVISION FOR LOAN LOSSES

 

 

573

 

 

450

 

 

2,233

 

 

1,250

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES

 

 

17,162

 

 

12,408

 

 

50,725

 

 

35,030

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

Service charges and fee income

 

 

1,619

 

 

716

 

 

5,131

 

 

2,045

Gain on sale of loans

 

 

4,583

 

 

3,818

 

 

10,556

 

 

12,467

Gain on sale of investment securities

 

 

 —

 

 

 —

 

 

32

 

 

113

Earnings on cash surrender value of BOLI

 

 

219

 

 

88

 

 

651

 

 

258

Other noninterest income

 

 

323

 

 

180

 

 

1,012

 

 

557

Total noninterest income

 

 

6,744

 

 

4,802

 

 

17,382

 

 

15,440

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and benefits

 

 

7,865

 

 

7,039

 

 

24,757

 

 

21,759

Operations

 

 

2,360

 

 

1,308

 

 

7,062

 

 

4,209

Occupancy

 

 

1,104

 

 

744

 

 

3,446

 

 

2,097

Data processing

 

 

1,148

 

 

625

 

 

3,770

 

 

1,944

Gain on sale of OREO

 

 

(40)

 

 

 —

 

 

(125)

 

 

 —

OREO expenses

 

 

 1

 

 

 —

 

 

12

 

 

 —

Loan costs

 

 

903

 

 

850

 

 

2,282

 

 

2,183

Professional and board fees

 

 

654

 

 

414

 

 

1,820

 

 

1,321

Federal Deposit Insurance Corporation (“FDIC”) insurance

 

 

(29)

 

 

137

 

 

358

 

 

268

Marketing and advertising

 

 

178

 

 

201

 

 

505

 

 

564

Acquisition costs

 

 

257

 

 

443

 

 

1,855

 

 

443

Amortization of core deposit intangible

 

 

190

 

 

77

 

 

570

 

 

230

Impairment of servicing rights

 

 

131

 

 

 —

 

 

278

 

 

 —

Total noninterest expense

 

 

14,722

 

 

11,838

 

 

46,590

 

 

35,018

INCOME BEFORE PROVISION FOR INCOME TAXES

 

 

9,184

 

 

5,372

 

 

21,517

 

 

15,452

PROVISION FOR INCOME TAXES

 

 

2,040

 

 

1,320

 

 

4,718

 

 

2,822

NET INCOME

 

$

7,144

 

$

4,052

 

$

16,799

 

$

12,630

Basic earnings per share

 

$

1.62

 

$

1.12

 

$

3.80

 

$

3.52

Diluted earnings per share

 

$

1.58

 

$

1.07

 

$

3.71

 

$

3.35

 

See accompanying notes to these consolidated financial statements.

4

Table of Contents

FS BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)  (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Three Months Ended

    

Nine Months Ended

 

 

 

September 30, 

 

September 30, 

 

 

 

2019

 

2018

 

2019

 

2018

 

Net Income

 

$

7,144

 

$

4,052

 

$

16,799

 

$

12,630

 

Other comprehensive income (loss):

 

 

  

 

 

  

 

 

  

 

 

  

 

Securities available-for-sale:

 

 

  

 

 

  

 

 

  

 

 

  

 

Unrealized holding gain (loss) during period

 

 

110

 

 

(684)

 

 

2,658

 

 

(2,675)

 

Income tax (provision) benefit related to unrealized holding gain (loss)

 

 

(23)

 

 

147

 

 

(571)

 

 

575

 

Reclassification adjustment for realized gains, net included in net income

 

 

 —

 

 

 —

 

 

(32)

 

 

(113)

 

Income tax provision related to reclassification for realized gains, net

 

 

 —

 

 

 —

 

 

 7

 

 

24

 

Other comprehensive income (loss), net of tax

 

 

87

 

 

(537)

 

 

2,062

 

 

(2,189)

 

COMPREHENSIVE INCOME

 

$

7,231

 

$

3,515

 

$

18,861

 

$

10,441

 

 

See accompanying notes to these consolidated financial statements.

5

Table of Contents

FS BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(Dollars in thousands, except share amounts) (Unaudited)

Three Months Ended September 30, 2018 and 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

    

 

 

    

 

 

    

 

 

    

Accumulated

    

 

 

    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

Comprehensive

 

Unearned

 

Total

 

 

Common Stock

 

Paid-in

 

Retained

 

(Loss) Income,

 

ESOP

 

Stockholders’

 

 

Shares

 

Amount

 

Capital

 

Earnings

 

Net of Tax

 

Shares

 

Equity

BALANCE, July 1, 2018

 

3,708,660

 

$

37

 

$

56,344

 

$

76,102

 

$

(2,127)

 

$

(985)

 

$

129,371

Net income

 

 —

 

$

 —

 

 

 —

 

 

4,052

 

 

 —

 

 

 —

 

$

4,052

Dividends paid ($0.14 per share)

 

 —

 

$

 —

 

 

 —

 

 

(506)

 

 

 —

 

 

 —

 

$

(506)

Share-based compensation

 

 —

 

$

 —

 

 

207

 

 

 —

 

 

 —

 

 

 —

 

$

207

Stock options exercised

 

7,800

 

$

 —

 

 

132

 

 

 —

 

 

 —

 

 

 —

 

$

132

Other comprehensive loss, net of tax

 

 —

 

$

 —

 

 

 —

 

 

 —

 

 

(537)

 

 

 —

 

$

(537)

ESOP shares allocated

 

 —

 

$

 —

 

 

344

 

 

 —

 

 

 —

 

 

66

 

$

410

BALANCE, September 30, 2018

 

3,716,460

 

$

37

 

$

57,027

 

$

79,648

 

$

(2,664)

 

$

(919)

 

$

133,129

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE, July 1, 2019

 

4,476,864

 

$

45

 

$

90,418

 

$

99,184

 

$

496

 

$

(717)

 

$

189,426

Net income

 

 —

 

$

 —

 

 

 —

 

 

7,144

 

 

 —

 

 

 —

 

$

7,144

Dividends paid ($0.15 per share)

 

 —

 

$

 —

 

 

 —

 

 

(656)

 

 

 —

 

 

 —

 

$

(656)

Share-based compensation

 

 —

 

$

 —

 

 

189

 

 

 —

 

 

 —

 

 

 —

 

$

189

Restricted stock awards

 

20,215

 

$

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

$

 —

Common stock repurchased - repurchase plan

 

(46,562)

 

$

(1)

 

 

(2,275)

 

 

 —

 

 

 —

 

 

 —

 

$

(2,276)

Common stock repurchased for employee/director taxes paid on restricted stock awards

 

(645)

 

$

 —

 

 

(31)

 

 

 —

 

 

 —

 

 

 —

 

$

(31)

Stock options exercised

 

3,000

 

$

 —

 

 

51

 

 

 —

 

 

 —

 

 

 —

 

$

51

Other comprehensive income, net of tax

 

 —

 

$

 —

 

 

 —

 

 

 —

 

 

87

 

 

 —

 

$

87

ESOP shares allocated

 

 —

 

$

 —

 

 

256

 

 

 —

 

 

 —

 

 

67

 

$

323

BALANCE, September 30, 2019

 

4,452,872

 

$

44

 

$

88,608

 

$

105,672

 

$

583

 

$

(650)

 

$

194,257

 

6

Table of Contents

FS BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Continued)

(Dollars in thousands, except share amounts) (Unaudited)

 

Nine Months Ended September 30, 2018 and 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

    

 

 

    

 

 

    

 

 

    

Accumulated

    

 

 

    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

Comprehensive

 

Unearned

 

Total

 

 

Common Stock

 

Paid-in

 

Retained

 

(Loss) Income,

 

ESOP

 

Stockholders’

 

 

Shares

 

Amount

 

Capital

 

Earnings

 

Net of Tax

 

Shares

 

Equity

BALANCE, January 1, 2018

 

3,680,152

 

$

37

 

$

55,135

 

$

68,422

 

$

(475)

 

$

(1,117)

 

$

122,002

Net income

 

 —

 

$

 —

 

 

 —

 

 

12,630

 

 

 —

 

 

 —

 

$

12,630

Dividends paid ($0.39 per share)

 

 —

 

$

 —

 

 

 —

 

 

(1,404)

 

 

 —

 

 

 —

 

$

(1,404)

Share-based compensation

 

 —

 

$

 —

 

 

492

 

 

 —

 

 

 —

 

 

 —

 

$

492

Common stock repurchased - repurchase plan

 

(4,325)

 

$

 —

 

 

(250)

 

 

 —

 

 

 —

 

 

 —

 

$

(250)

Stock options exercised

 

40,633

 

$

 —

 

 

686

 

 

 —

 

 

 —

 

 

 —

 

$

686

Other comprehensive loss, net of tax

 

 —

 

$

 —

 

 

 —

 

 

 —

 

 

(2,189)

 

 

 —

 

$

(2,189)

ESOP shares allocated

 

 —

 

$

 —

 

 

964

 

 

 —

 

 

 —

 

 

198

 

$

1,162

BALANCE, September 30, 2018

 

3,716,460

 

$

37

 

$

57,027

 

$

79,648

 

$

(2,664)

 

$

(919)

 

$

133,129

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE, January 1, 2019

 

4,492,478

 

$

45

 

$

91,466

 

$

90,854

 

$

(1,479)

 

$

(848)

 

$

180,038

Net income

 

 —

 

$

 —

 

 

 —

 

 

16,799

 

 

 —

 

 

 —

 

$

16,799

Dividends paid ($0.45 per share)

 

 —

 

$

 —

 

 

 —

 

 

(1,981)

 

 

 —

 

 

 —

 

$

(1,981)

Share-based compensation

 

 —

 

$

 —

 

 

641

 

 

 —

 

 

 —

 

 

 —

 

$

641

Restricted stock awards

 

20,215

 

$

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

$

 —

Common stock repurchased - repurchase plan

 

(99,184)

 

$

(1)

 

 

(4,801)

 

 

 —

 

 

 —

 

 

 —

 

$

(4,802)

Common stock repurchased for employee/director taxes paid on restricted stock awards

 

(4,037)

 

$

 —

 

 

(204)

 

 

 —

 

 

 —

 

 

 —

 

$

(204)

Stock options exercised

 

43,400

 

$

 —

 

 

733

 

 

 —

 

 

 —

 

 

 —

 

$

733

Other comprehensive income, net of tax

 

 —

 

$

 —

 

 

 —

 

 

 —

 

 

2,062

 

 

 —

 

$

2,062

ESOP shares allocated

 

 —

 

$

 —

 

 

773

 

 

 —

 

 

 —

 

 

198

 

$

971

BALANCE, September 30, 2019

 

4,452,872

 

$

44

 

$

88,608

 

$

105,672

 

$

583

 

$

(650)

 

$

194,257

 

See accompanying notes to these consolidated financial statements.

 

 

7

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FS BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands) (Unaudited)

.

 

 

 

 

 

 

 

 

     

Nine Months Ended September 30, 

 

    

2019

     

2018

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

Net income

 

$

16,799

 

$

12,630

Adjustments to reconcile net income to net cash from operating activities

 

 

  

 

 

  

Provision for loan losses

 

 

2,233

 

 

1,250

Depreciation, amortization and accretion

 

 

9,269

 

 

4,535

Compensation expense related to stock options and restricted stock awards

 

 

641

 

 

492

ESOP compensation expense for allocated shares

 

 

971

 

 

1,162

Increase in cash surrender value of BOLI

 

 

(651)

 

 

(258)

Gain on sale of loans held for sale

 

 

(10,434)

 

 

(12,275)

Gain on sale of portfolio loans

 

 

(122)

 

 

(192)

Gain on sale of investment securities

 

 

(32)

 

 

(113)

Origination of loans held for sale

 

 

(579,762)

 

 

(485,490)

Proceeds from sale of loans held for sale

 

 

556,538

 

 

492,336

Impairment of servicing rights

 

 

278

 

 

 —

Gain on sale of OREO

 

 

(125)

 

 

 —

Changes in operating assets and liabilities

 

 

  

 

 

  

Accrued interest receivable

 

 

38

 

 

(853)

Other assets

 

 

(6,082)

 

 

(139)

Other liabilities

 

 

6,807

 

 

5,314

Net cash (used) from operating activities

 

 

(3,634)

 

 

18,399

CASH FLOWS USED BY INVESTING ACTIVITIES

 

 

  

 

 

  

Activity in securities available-for-sale:

 

 

  

 

 

  

Proceeds from sale of investment securities

 

 

10,554

 

 

5,305

Maturities, prepayments, and calls

 

 

18,138

 

 

6,942

Purchases

 

 

(35,192)

 

 

(30,197)

Maturities of certificates of deposit at other financial institutions

 

 

2,488

 

 

744

Purchase of certificates of deposit at other financial institutions

 

 

(4,712)

 

 

 —

Loan originations and principal collections, net

 

 

(11,976)

 

 

(176,433)

Purchase of portfolio loans

 

 

(321)

 

 

(22,532)

Proceeds from sale of portfolio loans

 

 

8,487

 

 

10,950

Proceeds from sale of OREO, net

 

 

800

 

 

 —

Purchase of premises and equipment

 

 

(2,002)

 

 

(2,355)

Purchase of BOLI

 

 

 —

 

 

(3,000)

Change in FHLB stock, net

 

 

1,892

 

 

(4,260)

Net cash used by investing activities

 

 

(11,844)

 

 

(214,836)

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

  

 

 

  

Net increase in deposits

 

 

112,383

 

 

114,695

Proceeds from borrowings

 

 

354,372

 

 

739,740

Repayments of borrowings

 

 

(414,908)

 

 

(660,743)

Dividends paid

 

 

(1,981)

 

 

(1,404)

Proceeds from stock options exercised

 

 

733

 

 

686

Restricted stock awards

 

 

(204)

 

 

 —

Common stock repurchased

 

 

(4,802)

 

 

(250)

Net cash from financing activities

 

 

45,593

 

 

192,724

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

 

30,115

 

 

(3,713)

CASH AND CASH EQUIVALENTS, beginning of period

 

 

32,779

 

 

18,915

CASH AND CASH EQUIVALENTS, end of period

 

$

62,894

 

$

15,202

 

 

 

 

 

 

 

8

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