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font-family: inherit;">&#160;</div></td><td colspan="3" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; font-weight: bold; text-align: center;">Amortized<br /> Cost</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="3" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; font-weight: bold; text-align: center;">Gross<br />Unrealized<br /> Gains</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="3" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; font-weight: bold; text-align: center;">Gross<br />Unrealized<br /> Losses</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="3" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; font-weight: bold; text-align: center;">Fair<br /> Value</div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">U.S. Government-sponsored enterprises (GSEs)</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">26,207</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">1</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">(432</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">)</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">25,776</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Municipal securities</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">9,122</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">28</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">(147</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">)</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">9,003</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Other debt securities</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">974</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">&#8212;</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">(24</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">)</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">950</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Mortgage-backed securities</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">117,263</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">136</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">(1,184</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">)</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">116,215</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Total</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">153,566</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">165</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">(1,787</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">)</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">151,944</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr></table></div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;">&#160;</div><div style="font-size: 10pt; padding-top: 10px; padding-left: 0px; line-height: normal; text-indent: 0px;"><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Times New Roman; border-collapse: collapse; text-align: left; width: 99.8%;"><tr><td colspan="17"></td></tr><tr><td style="width: 48%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 10%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 10%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 10%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 10%;"></td><td style="width: 1%;"></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="15" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; font-weight: bold; text-align: center;">December&#160;31, 2016</div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="3" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; font-weight: bold; text-align: center;">Amortized<br /> Cost</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="3" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; font-weight: bold; text-align: center;">Gross<br />Unrealized<br /> Gains</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="3" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; font-weight: bold; text-align: center;">Gross<br />Unrealized<br /> Losses</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="3" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; font-weight: bold; text-align: center;">Fair<br /> Value</div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">U.S. Government-sponsored enterprises (GSEs)</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">18,279</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">8</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">(564</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">)</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">17,723</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Municipal securities</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">8,182</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; 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border-bottom: #000000 1px solid; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">185</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">(1,090</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">)</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">103,680</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Total</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">131,046</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">209</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">(1,833</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">)</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">129,422</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr></table></div></div> 153566000 974000 26207000 160547000 976000 15896000 114538000 9122000 29137000 117263000 9122000 18279000 131046000 8182000 117263000 104585000 13995000 8037000 6368000 950000 1358000 3418000 61332000 67058000 14702000 88133000 67063000 0 2174000 0 2112000 13420000 8948000 0 0 35048000 50580000 8948000 14702000 96380000 76011000 14778000 97081000 117638000 5530000 6368000 950000 10460000 4486000 10356000 4440000 13366000 7822000 111954000 116215000 20901000 21292000 151944567 156577182 129421914 25776000 9003000 950000 911000 15584000 28128000 116215000 111954000 0 151944000 0 0 9003000 0 0 0 0 156577000 0 0 111954000 911000 0 0 0 28128000 25776000 0 15584000 950000 0 0 0 0 0 116215000 111954000 0 116215000 0 156577000 151944000 156577000 151944000 21554000 21606000 114538000 117263000 0 2175000 2000 0 145000 200000 28576000 18507000 413023000 180490000 413023000 310000 51638000 24563000 51638000 68311000 34797000 4887000 4000000 133000 16810000 5723000 16810000 23.85 23.49 23.92 1585000 1585000 85722000 34802000 85722000 77000 6360000 2258000 6360000 4887000 6803000 586000 6803000 1800000 473000 237000 909000 947000 7300000 12500000 3700000 6200000 24900000 1458981 2908094 0.74 0.886 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="font-size: 10pt; font-family: inherit; font-style: italic; text-align: justify; text-decoration: underline; line-height: 120%;">Business Combinations:</div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;">&#160;</div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;">Business combinations are accounted for using the acquisition method of accounting. Under the acquisition method of accounting, acquired assets and assumed liabilities are included with the acquirer's accounts as of the date of acquisition at estimated fair value, with any excess of purchase price over the fair value of the net assets acquired (including identifiable intangible assets) capitalized as goodwill. In the event that the fair value of the net assets acquired exceeds the purchase price, an acquisition gain is recorded for the difference in consolidated statements of income for the period in which the acquisition occurred. An intangible asset is recognized as an asset apart from goodwill when it arises from contractual or other legal rights or if it is capable of being separated or divided from the acquired entity and sold, transferred, licensed, rented or exchanged. In addition, acquisition-related costs and restructuring costs are recognized as period expenses as incurred. Estimates of fair value are subject to refinement for a period not to exceed one year from acquisition date as information relative to acquisition date fair values becomes available.</div></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="font-size: 10pt; font-family: inherit; font-weight: bold; line-height: 120%;">Note 2. Business Combinations</div><div style="font-size: 10pt; font-family: inherit; line-height: 120%;">&#160;</div><div style="font-size: 10pt; text-align: justify; line-height: 120%;"><font style="font-size: 10pt; font-family: inherit;">On December 8, 2016, the Bank entered into a purchase and assumption agreement with Atlantic Capital Bank, N.A. that provided for the acquisition and assumption by the Bank of certain assets and liabilities associated with Atlantic Capital Bank&#8217;s branch office located at 3200 Keith Street NW, Cleveland, Tennessee 37312. The purchase was completed on May 19, 2017 for total cash consideration of </font><font style="font-size: 10pt; font-family: inherit;">$1,183,007</font><font style="font-size: 10pt; font-family: inherit;">. The assets and liabilities as of the effective date of the transaction were recorded at their respective estimated fair values. The excess of the purchase price over the net estimated fair values of the acquired assets and liabilities was allocated to identifiable intangible assets with the remaining excess allocated to goodwill. In the periods following the acquisition, the financial statements will include the results attributable to the Cleveland branch purchase beginning on the date of purchase. For the twelve months period ended December 31, 2017, the revenues and net income attributable to the Cleveland branch were </font><font style="font-size: 10pt; font-family: inherit;">$903,311</font><font style="font-size: 10pt; font-family: inherit;"> and </font><font style="font-size: 10pt; font-family: inherit;">$63,385</font><font style="font-size: 10pt; font-family: inherit;">, respectively. It is impracticable to determine the pro-forma impact to the 2017 revenues and net income if the acquisition had occurred on January 1, 2017 as the Company does not have access to those records for a single branch. The following table details the financial impact of the transaction, including the allocation of the purchase price to the fair values of net assets assumed and goodwill recognized:</font></div><div style="font-size: 10pt; text-align: center; padding-top: 10px; padding-left: 0px; line-height: normal; text-indent: 0px;"><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Times New Roman; border-collapse: collapse; text-align: left; margin-left: auto; width: 99.41%; margin-right: auto;"><tr><td colspan="4"></td></tr><tr><td style="width: 83%;"></td><td style="width: 1%;"></td><td style="width: 15%;"></td><td style="width: 1%;"></td></tr><tr><td style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Allocation of Purchase Price (in thousands)</div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">&#160;</div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Total consideration in cash</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">1,183</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Fair value of assets acquired and liabilities assumed:</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">&#160;</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Cash and cash equivalents</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">133</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Loans</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">24,073</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Premises and equipment</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">2,839</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Core deposit intangible</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">310</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Prepaid and other assets</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">77</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Deposits</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">(26,888</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">)</div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Payables and other liabilities</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">(21</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">)</div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Total fair value of net assets acquired</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">523</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Goodwill</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">660</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr></table></div><div style="font-size: 10pt; font-family: inherit; text-align: left; line-height: 120%;"><br /></div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;">As of December 31, 2017 there have not been any changes to the initial fair values recorded as part of the business combination.</div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;"><br /></div><div style="font-size: 10pt; text-align: justify; line-height: 120%;"><font style="font-size: 10pt; font-family: inherit;">On May 22, 2017, the shareholders of the SmartFinancial, Inc (&#8220;</font><font style="font-size: 10pt; font-family: inherit; text-decoration: underline;">SmartFinancial</font><font style="font-size: 10pt; font-family: inherit;">&#8221;) approved a merger with Capstone Bancshares, Inc. ("Capstone"), the one bank holding company of Capstone Bank, which became effective November 1, 2017. Capstone shareholders received either: (a) </font><font style="font-size: 10pt; font-family: inherit;">0.85</font><font style="font-size: 10pt; font-family: inherit;"> shares of SmartFinancial common stock, (b) </font><font style="font-size: 10pt; font-family: inherit;">$18.50</font><font style="font-size: 10pt; font-family: inherit;"> in cash, or (c) a combination of </font><font style="font-size: 10pt; font-family: inherit;">80%</font><font style="font-size: 10pt; font-family: inherit;"> SmartFinancial common stock and </font><font style="font-size: 10pt; font-family: inherit;">20%</font><font style="font-size: 10pt; font-family: inherit;"> cash. Elections were limited by the requirement that </font><font style="font-size: 10pt; font-family: inherit;">80%</font><font style="font-size: 10pt; font-family: inherit;"> of the total shares of Capstone common stock be exchanged for SmartFinancial common stock and </font><font style="font-size: 10pt; font-family: inherit;">20%</font><font style="font-size: 10pt; font-family: inherit;"> be exchanged for cash. Therefore, the allocation of SmartFinancial common stock and cash that a Capstone shareholder received depended on the elections of other Capstone shareholders, and were allocated in accordance with the procedures set forth in the merger agreement. Capstone shareholders also received cash instead of any fractional shares they would have otherwise received in the merger.</font></div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;"><br /></div><div style="font-size: 10pt; text-align: justify; line-height: 120%;"><font style="font-size: 10pt; font-family: inherit;">After the merger, shareholders of SmartFinancial owned approximately </font><font style="font-size: 10pt; font-family: inherit;">74%</font><font style="font-size: 10pt; font-family: inherit;"> of the outstanding common stock of the combined entity on a fully diluted basis, after taking into account the exchange ratio.</font></div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;">&#160;</div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;">The merger is being accounted for using the acquisition method of accounting, in accordance with the provisions of FASB ASC 805-10 Business Combinations. Under this guidance, for accounting purposes, SmartFinancial is considered the acquirer in the merger, and as a result the historical financial statements of the combined entity will be the historical financial statements of SmartFinancial.</div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;">&#160;</div><div style="font-size: 10pt; text-align: justify; line-height: 120%;"><font style="font-size: 10pt; font-family: inherit;">The merger was effected by the issuance of shares of SmartFinancial stock along with cash consideration to shareholders of Capstone. The assets and liabilities of Capstone as of the effective date of the merger were recorded at their respective estimated fair values and combined with those of SmartFinancial. The excess of the purchase price over the net estimated fair values of the acquired assets and liabilities was allocated to identifiable intangible assets with the remaining excess allocated to goodwill. Goodwill from the transaction was </font><font style="font-size: 10pt; font-family: inherit;">$38.0 million</font><font style="font-size: 10pt; font-family: inherit;">, none of which is deductible for income tax purposes.</font></div><div style="font-size: 10pt; text-align: justify; line-height: 120%;">&#160;</div><div style="font-size: 10pt; text-align: justify; line-height: 120%;"><font style="font-size: 10pt; font-family: inherit;">In periods following the merger, the financial statements of the combined entity will include the results attributable to Capstone beginning on the date the merger was completed. In the period ended December&#160;31, 2017, the revenues and net income attributable to Capstone were </font><font style="font-size: 10pt; font-family: inherit;">$5.0 million</font><font style="font-size: 10pt; font-family: inherit;"> and </font><font style="font-size: 10pt; font-family: inherit;">$0.2 million</font><font style="font-size: 10pt; font-family: inherit;">, respectively. The pro-forma impact to 2017 revenues and net income if the merger had occurred on December&#160;31, 2016 would have been </font><font style="font-size: 10pt; font-family: inherit;">$24.9 million</font><font style="font-size: 10pt; font-family: inherit;"> and </font><font style="font-size: 10pt; font-family: inherit;">$947 thousand</font><font style="font-size: 10pt; font-family: inherit;">, respectively. </font></div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;"><br /></div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;">The fair value estimates of Capstone&#8217;s assets and liabilities recorded are preliminary and subject to refinement as additional information becomes available. Under current accounting principles, the Company&#8217;s estimates of fair values may be adjusted for a period of up to one year from the acquisition date.</div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;">&#160;</div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;">The following table details the financial impact of the merger, including the calculation of the purchase price, the allocation of the purchase price to the fair values of net assets assumed, and goodwill recognized:</div><div style="font-size: 10pt; padding-top: 10px; padding-left: 0px; line-height: normal; text-indent: 0px;"><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Times New Roman; border-collapse: collapse; text-align: left; width: 99.8%;"><tr><td colspan="4"></td></tr><tr><td style="width: 83%;"></td><td style="width: 1%;"></td><td style="width: 15%;"></td><td style="width: 1%;"></td></tr><tr><td style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Calculation of Purchase Price</div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">&#160;</div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Shares of SMBK common stock issued to Capstone shareholders as of November 1, 2017</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">2,908,094</div></td><td style="vertical-align: bottom; 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padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Estimated fair value of SMBK common stock issued (in thousands)</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">68,311</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Estimated fair value of Capstone stock options (in thousands)</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">1,585</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Cash consideration paid</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">15,826</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Total consideration (in thousands)</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">85,722</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr></table></div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;">&#160;</div><div style="font-size: 10pt; padding-top: 10px; padding-left: 0px; line-height: normal; text-indent: 0px;"><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Times New Roman; border-collapse: collapse; text-align: left; width: 99.8%;"><tr><td colspan="4"></td></tr><tr><td style="width: 83%;"></td><td style="width: 1%;"></td><td style="width: 15%;"></td><td style="width: 1%;"></td></tr><tr><td style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Allocation of Purchase Price (in thousands)</div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">&#160;</div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Total consideration above</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">85,722</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Fair value of assets acquired and liabilities assumed:</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">&#160;</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Cash and cash equivalents</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">16,810</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Investment securities available for sale</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">51,638</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Restricted investments</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">1,049</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Loans</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">413,023</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Premises and equipment</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">8,668</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Bank owned life insurance</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">10,031</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Core deposit intangible</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">5,530</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Other real estate owned</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">410</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Prepaid and other assets</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">6,360</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Deposits</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">(454,154</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">)</div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">FHLB advances and other borrowings</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">(4,887</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">)</div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Payables and other liabilities</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">(6,803</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">)</div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Total fair value of net assets acquired</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">47,675</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Goodwill</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">38,047</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr></table></div></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="font-size: 10pt; font-family: inherit; font-weight: bold; text-align: justify; line-height: 120%;">Note 2.&#160;&#160;&#160;&#160;Business Combination</div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;"><br /></div><div style="font-size: 10pt; font-family: inherit; font-style: italic; text-align: justify; line-height: 120%;">Acquisition of branch from Atlantic Capital Bank, N.A.</div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;"><br /></div><div style="font-size: 10pt; text-align: justify; line-height: 120%;"><font style="font-size: 10pt; font-family: inherit;">On December 8, 2016, the Bank entered into a purchase and assumption agreement with Atlantic Capital Bank, N.A. that provided for the acquisition and assumption by the Bank of certain assets and liabilities associated with Atlantic Capital Bank&#8217;s branch office located at 3200 Keith Street NW, Cleveland, Tennessee 37312. The purchase was completed on May 19, 2017 for total cash consideration of </font><font style="font-size: 10pt; font-family: inherit;">$1.2</font><font style="font-size: 10pt; font-family: inherit;"> million. The assets and liabilities as of the effective date of the transaction were recorded at their respective estimated fair values. The excess of the purchase price over the net estimated fair values of the acquired assets and liabilities was allocated to identifiable intangible assets with the remaining excess allocated to goodwill. In the periods following the acquisition, the financial statements will include the results attributable to the Cleveland branch purchase beginning on the date of purchase. For the three and </font><font style="font-size: 10pt; font-family: inherit;">six</font><font style="font-size: 10pt; font-family: inherit;"> months period ended </font><font style="font-size: 10pt; font-family: inherit;">June&#160;30, 2018</font><font style="font-size: 10pt; font-family: inherit;">, the revenues attributable to the Cleveland branch were </font><font style="font-size: 10pt; font-family: inherit;">$381 thousand</font><font style="font-size: 10pt; font-family: inherit;"> and </font><font style="font-size: 10pt; font-family: inherit;">$754 thousand</font><font style="font-size: 10pt; font-family: inherit;">, respectively. For the three and </font><font style="font-size: 10pt; font-family: inherit;">six</font><font style="font-size: 10pt; font-family: inherit;"> months period ended </font><font style="font-size: 10pt; font-family: inherit;">June&#160;30, 2018</font><font style="font-size: 10pt; font-family: inherit;">, net income attributable to the Cleveland branch was a net income of </font><font style="font-size: 10pt; font-family: inherit;">$105 thousand</font><font style="font-size: 10pt; font-family: inherit;"> and net income of </font><font style="font-size: 10pt; font-family: inherit;">$194 thousand</font><font style="font-size: 10pt; font-family: inherit;">, respectively. It is impracticable to determine the pro-forma impact to the 2017 revenues and net income if the acquisition had occurred on January 1, 2017 as the Company does not have access to those records for a single branch. </font><br /></div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;">The following table details the financial impact of the transaction, including the allocation of the purchase price to the fair values of net assets assumed and goodwill recognized:</div><div style="font-size: 10pt; text-align: center; padding-top: 10px; padding-left: 0px; line-height: normal; text-indent: 0px;"><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Times New Roman; border-collapse: collapse; text-align: left; margin-left: auto; width: 471px; margin-right: auto;"><tr><td colspan="4"></td></tr><tr><td style="width: 364px;"></td><td style="width: 9px;"></td><td style="width: 94px;"></td><td style="width: 4px;"></td></tr><tr><td style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Allocation of Purchase Price (in thousands)</div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">&#160;</div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; text-align: left;"><font style="font-size: 10pt; font-family: inherit; background-color: #cceeff;">Total consideration in cash<br /></font></div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; 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padding-top: 2px; padding-left: 12px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; text-align: left;"><font style="font-size: 10pt; font-family: inherit; background-color: #cceeff;">Cash and cash equivalents</font></div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">133</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 12px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Loans</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">24,073</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 12px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; text-align: left;"><font style="font-size: 10pt; font-family: inherit; background-color: #cceeff;">Premises and equipment</font></div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">2,839</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 12px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Core deposit intangible</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">310</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 12px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; text-align: left;"><font style="font-size: 10pt; font-family: inherit; background-color: #cceeff;">Prepaid and other assets</font></div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">77</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 12px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Deposits</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">(26,888</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">)</div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 12px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; text-align: left;"><font style="font-size: 10pt; font-family: inherit; background-color: #cceeff;">Payables and other liabilities</font></div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">(21</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">)</div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 20px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Total fair value of net assets acquired</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">523</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 12px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; text-align: left;"><font style="font-size: 10pt; font-family: inherit; background-color: #cceeff;">Goodwill</font></div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">660</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr></table></div><div style="font-size: 10pt; font-family: inherit; text-align: left; line-height: 120%;"><br /></div><div style="font-size: 10pt; text-align: left; line-height: 120%;"><font style="font-size: 10pt; font-family: inherit;">As of </font><font style="font-size: 10pt; font-family: inherit;">June&#160;30, 2018</font><font style="font-size: 10pt; font-family: inherit;"> there have not been any changes to the initial fair values recorded as part of the business combination.</font></div><div style="font-size: 10pt; font-family: inherit; text-align: left; line-height: 120%;"><br /></div><div style="font-size: 10pt; font-family: inherit; font-style: italic; text-align: left; line-height: 120%;">Acquisition of Capstone Bancshares, Inc.</div><div style="font-size: 10pt; font-family: inherit; text-align: left; line-height: 120%;"><br /></div><div style="font-size: 10pt; text-align: justify; line-height: 120%;"><font style="font-size: 10pt; font-family: inherit;">On May 22, 2017, the shareholders of the Company approved a merger with Capstone Bancshares, Inc. ("Capstone"), the one bank holding company of Capstone Bank, which became effective November 1, 2017. Capstone shareholders received either: (a) </font><font style="font-size: 10pt; font-family: inherit;">0.85</font><font style="font-size: 10pt; font-family: inherit;"> shares of common stock, (b) </font><font style="font-size: 10pt; font-family: inherit;">$18.50</font><font style="font-size: 10pt; font-family: inherit;"> in cash, or (c) a combination of </font><font style="font-size: 10pt; font-family: inherit;">80%</font><font style="font-size: 10pt; font-family: inherit;"> common stock and </font><font style="font-size: 10pt; font-family: inherit;">20%</font><font style="font-size: 10pt; font-family: inherit;"> cash. Elections were limited by the requirement that </font><font style="font-size: 10pt; font-family: inherit;">80%</font><font style="font-size: 10pt; font-family: inherit;"> of the total shares of Capstone common stock be exchanged for common stock and </font><font style="font-size: 10pt; font-family: inherit;">20%</font><font style="font-size: 10pt; font-family: inherit;"> be exchanged for cash. Therefore, the allocation of common stock and cash that a Capstone shareholder received depended on the elections of other Capstone shareholders, and were allocated in accordance with the procedures set forth in the merger agreement. Capstone shareholders also received cash instead of any fractional shares they would have otherwise received in the merger.</font></div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;"><br /></div><div style="font-size: 10pt; text-align: justify; line-height: 120%;"><font style="font-size: 10pt; font-family: inherit;">After the merger, shareholders of SmartFinancial owned approximately </font><font style="font-size: 10pt; font-family: inherit;">74%</font><font style="font-size: 10pt; font-family: inherit;"> of the outstanding common stock of the combined entity on a fully diluted basis, after taking into account the exchange ratio.</font></div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;">&#160;</div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;">The merger is being accounted for using the acquisition method of accounting, in accordance with the provisions of FASB ASC 805-10 Business Combinations. Under this guidance, for accounting purposes, the Company is considered the acquirer in the merger, and as a result the historical financial statements of the combined entity are the historical consolidated financial statements of the Company.</div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;">&#160;</div><div style="font-size: 10pt; text-align: justify; line-height: 120%;"><font style="font-size: 10pt; font-family: inherit;">The merger was effected by the issuance of shares of SmartFinancial stock along with cash consideration to shareholders of Capstone. The assets and liabilities of Capstone as of the effective date of the merger were recorded at their respective estimated fair values and combined with those of SmartFinancial. The excess of the purchase price over the net estimated fair values of the acquired assets and liabilities was allocated to identifiable intangible assets with the remaining excess allocated to goodwill. Goodwill from the transaction was </font><font style="font-size: 10pt; font-family: inherit;">$38.0 million</font><font style="font-size: 10pt; font-family: inherit;">, none of which is deductible for income tax purposes.</font></div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;">&#160;</div><div style="font-size: 10pt; text-align: justify; line-height: 120%;"><font style="font-size: 10pt; font-family: inherit;">In periods following the merger, the financial statements of the combined entity will include the results attributable to Capstone beginning on the date the merger was completed. In the three and six month period ended June 30, 2018, the revenues attributable to Capstone were approximately </font><font style="font-size: 10pt; font-family: inherit;">$7.6 million</font><font style="font-size: 10pt; font-family: inherit;"> and </font><font style="font-size: 10pt; font-family: inherit;">$14.5 million</font><font style="font-size: 10pt; font-family: inherit;">. In the three and six month period ended June 30, 2018, the net income attributable to Capstone was approximately </font><font style="font-size: 10pt; font-family: inherit;">$3.4 million</font><font style="font-size: 10pt; font-family: inherit;"> and </font><font style="font-size: 10pt; font-family: inherit;">$6.0 million</font><font style="font-size: 10pt; font-family: inherit;">, respectively. </font><br /></div><div style="font-size: 10pt; text-align: justify; line-height: 120%;"><font style="font-size: 10pt; font-family: inherit;">The pro-forma impact to 2017 revenues if the merger had occurred on December&#160;31, 2016 would have been </font><font style="font-size: 10pt; font-family: inherit;">$6.2 million</font><font style="font-size: 10pt; font-family: inherit;"> and </font><font style="font-size: 10pt; font-family: inherit;">$12.5 million</font><font style="font-size: 10pt; font-family: inherit;"> for the three and six month period ending June 30, 2017, respectively. The pro-forma impact to 2017 net income if the merger had occurred on December 31, 2016 would have been </font><font style="font-size: 10pt; font-family: inherit;">$237 thousand</font><font style="font-size: 10pt; font-family: inherit;"> and </font><font style="font-size: 10pt; font-family: inherit;">$473 thousand</font><font style="font-size: 10pt; font-family: inherit;"> for the three and six month period ending June 30, 2017, respectively. While certain adjustments were made for the estimated impact of certain fair value adjustments, they are not indicative of what would have occurred had the merger taken place on the indicated date nor are they intended to represent or be indicative of future results of operations. In particular, no adjustments have been made to eliminate the amount of Capstone's provision for credit losses not have been necessary or any adjustments to estimate any additional income that would have been recorded as a result of fair value adjustments for the first six months of 2017 that may have occurred had the acquired loans been recorded at fair value as of the beginning of 2017. In addition there are no adjustments to reflect any expenses that potentially could have been reduced for the first six months of 2017 had the merger occurred on December&#160;31, 2016. There were </font><font style="font-size: 10pt; font-family: inherit;">$4.6 million</font><font style="font-size: 10pt; font-family: inherit;"> in nonrecurring pro forma adjustments to expense included in the reported proforma revenue and earnings.</font></div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;"><br /></div><div style="font-size: 10pt; text-align: justify; line-height: 120%;"><font style="font-size: 10pt; font-family: inherit;">The fair value estimates of Capstone&#8217;s assets and liabilities recorded are preliminary and subject to refinement as additional information becomes available. Under current accounting principles, the Company&#8217;s estimates of fair values may be adjusted for a period of up to one year from the acquisition date. As of </font><font style="font-size: 10pt; font-family: inherit;">June&#160;30, 2018</font><font style="font-size: 10pt; font-family: inherit;"> there was a </font><font style="font-size: 10pt; font-family: inherit;">$11 thousand</font><font style="font-size: 10pt; font-family: inherit;"> adjustment to reduce fair values initially recorded as part of the business combination.</font></div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;"><br /></div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;">The following table details the financial impact of the merger, including the calculation of the purchase price, the allocation of the purchase price to the fair values of net assets assumed, and goodwill recognized:</div><div style="font-size: 10pt; padding-top: 10px; padding-left: 0px; line-height: normal; text-indent: 0px;"><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Times New Roman; border-collapse: collapse; text-align: left; width: 100%;"><tr><td colspan="4"></td></tr><tr><td style="width: 83%;"></td><td style="width: 1%;"></td><td style="width: 15%;"></td><td style="width: 1%;"></td></tr><tr><td style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Calculation of Purchase Price</div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">&#160;</div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Shares of SMBK common stock issued to Capstone shareholders as of November 1, 2017</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">2,908,094</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Market price of SMBK common stock on November 1, 2017</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">23.49</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Estimated fair value of SMBK common stock issued (in thousands)</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">68,311</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Estimated fair value of Capstone stock options (in thousands)</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">1,585</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Cash consideration paid</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">15,826</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Total consideration (in thousands)</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">85,722</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr></table></div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;">&#160;</div><div style="font-size: 10pt; padding-top: 10px; padding-left: 0px; line-height: normal; text-indent: 0px;"><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Times New Roman; border-collapse: collapse; text-align: left; width: 100%;"><tr><td colspan="4"></td></tr><tr><td style="width: 83%;"></td><td style="width: 1%;"></td><td style="width: 15%;"></td><td style="width: 1%;"></td></tr><tr><td style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Allocation of Purchase Price (in thousands)</div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">&#160;</div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Total consideration above</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">85,722</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Fair value of assets acquired and liabilities assumed:</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">&#160;</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Cash and cash equivalents</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">16,810</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Investment securities available for sale</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">51,638</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Restricted investments</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">1,049</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Loans</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">413,023</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Premises and equipment</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">8,668</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Bank owned life insurance</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">10,031</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Core deposit intangible</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">5,530</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Other real estate owned</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">410</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Prepaid and other assets</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">6,360</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Deposits</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">(454,154</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">)</div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">FHLB advances and other borrowings</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">(4,887</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">)</div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Payables and other liabilities</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">(6,803</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">)</div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Total fair value of net assets acquired</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">47,675</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Goodwill</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">38,047</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr></table></div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;">&#160;</div><div style="font-size: 10pt; font-family: inherit; font-style: italic; text-align: left; line-height: 120%;">Acquisition of Tennessee Bancshares, Inc.</div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;"><br /></div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;">On May 1, 2018, the Company completed its merger with Tennessee Bancshares, Inc., a Tennessee corporation (&#8220;Tennessee Bancshares&#8221;), pursuant to an Agreement and Plan of Merger dated December 12, 2017 (the &#8220;Tennessee Bancshares merger agreement&#8221;), by and among SmartFinancial, Tennessee Bancshares, and Southern Community Bank, a Tennessee-chartered commercial bank and wholly owned subsidiary of Tennessee Bancshares. Tennessee Bancshares merged with and into SmartFinancial, with SmartFinancial continuing as the surviving corporation. Immediately following the merger, Southern Community Bank merged with and into the Bank continuing as the surviving banking corporation.</div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;"><br /></div><div style="font-size: 10pt; text-align: justify; line-height: 120%;"><font style="font-size: 10pt; font-family: inherit;">Pursuant to the Tennessee Bancshares merger agreement, each outstanding share of Tennessee Bancshares common stock was converted into and cancelled in exchange for </font><font style="font-size: 10pt; font-family: inherit;">0.8065</font><font style="font-size: 10pt; font-family: inherit;"> shares of SmartFinancial common stock.. SmartFinancial issued approximately </font><font style="font-size: 10pt; font-family: inherit;">1,458,981</font><font style="font-size: 10pt; font-family: inherit;"> shares of SmartFinancial common stock as consideration for the merger. SmartFinancial did not issue fractional shares of its common stock in connection with the merger, but instead paid cash in lieu of fractional shares based on the volume weighted average closing price of SmartFinancial common stock on the Nasdaq Capital Market for the </font><font style="font-size: 10pt; font-family: inherit;">10</font><font style="font-size: 10pt; font-family: inherit;"> consecutive trading days ending on (and including) April 27, 2018 (calculated as </font><font style="font-size: 10pt; font-family: inherit;">$23.92</font><font style="font-size: 10pt; font-family: inherit;">).</font></div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;"><br /></div><div style="font-size: 10pt; text-align: justify; line-height: 120%;"><font style="font-size: 10pt; font-family: inherit;">After the merger, shareholders of SmartFinancial owned approximately </font><font style="font-size: 10pt; font-family: inherit;">88.6%</font><font style="font-size: 10pt; font-family: inherit;"> of the outstanding common stock of the combined entity on a fully diluted basis, after taking into account the exchange ratio.</font></div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;"><br /></div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;">The merger with Tennessee Bancshares is being accounted for using the acquisition method of accounting, in accordance with the provisions of FASB ASC 805-10 Business Combinations. Under this guidance, for accounting purposes, the Company is considered the acquirer in the merger, and as a result the historical financial statements of the combined entity are the historical consolidated financial statements of the Company.</div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;">&#160;</div><div style="font-size: 10pt; text-align: justify; line-height: 120%;"><font style="font-size: 10pt; font-family: inherit;">The merger was effected by the issuance of shares of SmartFinancial stock along with cash consideration to the fractional shareholders of Tennessee Bancshares, Inc. The assets and liabilities of Tennessee Bancshares as of the effective date of the merger were recorded at their respective estimated fair values and combined with those of SmartFinancial. The excess of the purchase price over the net estimated fair values of the acquired assets and liabilities was allocated to identifiable intangible assets with the remaining excess allocated to goodwill. Goodwill from the transaction was </font><font style="font-size: 10pt; font-family: inherit;">$15.7 million</font><font style="font-size: 10pt; font-family: inherit;">, none of which is deductible for income tax purposes.</font></div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;"><br /></div><div style="font-size: 10pt; text-align: justify; line-height: 120%;"><font style="font-size: 10pt; font-family: inherit;">In periods following the Tennessee Bancshares merger, the financial statements of the combined entity will include the results attributable to Southern Community Bank beginning on the date the merger was completed. In the three and six months period ended June&#160;30, 2018, the revenues and net income attributable to Southern Community Bank were approximately </font><font style="font-size: 10pt; font-family: inherit;">$2.4 million</font><font style="font-size: 10pt; font-family: inherit;"> and </font><font style="font-size: 10pt; font-family: inherit;">$800 thousand</font><font style="font-size: 10pt; font-family: inherit;">, respectively. </font></div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;"><br /></div><div style="font-size: 10pt; text-align: justify; line-height: 120%;"><font style="font-size: 10pt; font-family: inherit;">The pro-forma impact to 2017 revenues if the merger had occurred on December&#160;31, 2016 would have been </font><font style="font-size: 10pt; font-family: inherit;">$3.7 million</font><font style="font-size: 10pt; font-family: inherit;"> and </font><font style="font-size: 10pt; font-family: inherit;">$7.3 million</font><font style="font-size: 10pt; font-family: inherit;"> for the three and six month period ending June 30, 2017, respectively. The pro-forma impact to 2017 net income if the merger had occurred on December 31, 2016 would have been </font><font style="font-size: 10pt; font-family: inherit;">$909 thousand</font><font style="font-size: 10pt; font-family: inherit;"> and </font><font style="font-size: 10pt; font-family: inherit;">$1.8 million</font><font style="font-size: 10pt; font-family: inherit;"> for the three and six month period ending June 30, 2017, respectively. </font></div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;"><br /></div><div style="font-size: 10pt; text-align: justify; line-height: 120%;"><font style="font-size: 10pt; font-family: inherit;">While certain adjustments were made for the estimated impact of certain fair value adjustments, they are not indicative of what would have occurred had the merger taken place on the indicated date nor are they intended to represent or be indicative of future results of operations. In particular, no adjustments have been made to eliminate the amount of Southern Community Bank's provision for credit losses not have been necessary or any adjustments to estimate any additional income that would have been recorded as a result of fair value adjustments for the first six months of 2017 that may have occurred had the acquired loans been recorded at fair value as of the beginning of 2017. In addition there are no adjustments to reflect any expenses that potentially could have been reduced for the first six months of 2017 had the merger occurred on December&#160;31, 2016. There were </font><font style="font-size: 10pt; font-family: inherit;">$1.3 million</font><font style="font-size: 10pt; font-family: inherit;"> nonrecurring pro forma adjustments to expense included in the reported proforma earnings.</font></div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;"><br /></div><div style="font-size: 10pt; text-align: justify; line-height: 120%;"><font style="font-size: 10pt; font-family: inherit;">The fair value estimates of Tennessee Bancshares assets and liabilities recorded are preliminary and subject to refinement as additional information becomes available. Under current accounting principles, the Company&#8217;s estimates of fair values may be adjusted for a period of up to one year from the acquisition date. As of </font><font style="font-size: 10pt; font-family: inherit;">June&#160;30, 2018</font><font style="font-size: 10pt; font-family: inherit;"> there were no adjustments to fair values initially recorded as part of the business combination.</font></div><div style="font-size: 10pt; text-align: justify; line-height: 120%;">&#160;</div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;">The following table details the financial impact of the merger, including the calculation of the purchase price, the allocation of the purchase price to the fair values of net assets assumed, and goodwill recognized:</div><div style="font-size: 10pt; padding-top: 10px; padding-left: 0px; line-height: normal; text-indent: 0px;"><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Times New Roman; border-collapse: collapse; text-align: left; width: 100%;"><tr><td colspan="4"></td></tr><tr><td style="width: 83%;"></td><td style="width: 1%;"></td><td style="width: 15%;"></td><td style="width: 1%;"></td></tr><tr><td style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Calculation of Purchase Price</div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Shares of SMBK common stock issued to TN Bancshares shareholders as of May 1, 2018</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">1,458,981</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Market price of SMBK common stock on May 1, 2018</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">23.85</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Estimated fair value of SMBK common stock issued (in thousands)</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">34,797</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Cash consideration paid</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">5</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Total consideration (in thousands)</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">34,802</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr></table></div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;">&#160;</div><div style="font-size: 10pt; padding-top: 10px; padding-left: 0px; line-height: normal; text-indent: 0px;"><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Times New Roman; border-collapse: collapse; text-align: left; width: 100%;"><tr><td colspan="4"></td></tr><tr><td style="width: 83%;"></td><td style="width: 1%;"></td><td style="width: 15%;"></td><td style="width: 1%;"></td></tr><tr><td style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Allocation of Purchase Price (in thousands)</div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Total consideration above</div></td><td style="border-top: #000000 1px solid; vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="border-top: #000000 1px solid; vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">34,802</div></td><td style="border-top: #000000 1px solid; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Fair value of assets acquired and liabilities assumed:</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">&#160;</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Cash and cash equivalents</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">5,723</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Investment securities available for sale</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">24,563</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Restricted investments</div></td><td colspan="2" style="vertical-align: bottom; 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font-family: inherit; text-align: left;">)</div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Total fair value of net assets acquired</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">19,074</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Goodwill</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; 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font-size: 10pt;"><div style="font-size: 10pt; font-family: inherit; font-style: italic; text-align: justify; text-decoration: underline; line-height: 120%;">Cash and Cash Equivalents:</div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;">&#160;</div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;">For purposes of reporting consolidated cash flows, cash and due from banks includes cash on hand, cash items in process of collection and amounts due from banks. 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The reserve requirement was </font><font style="font-size: 10pt; font-family: inherit;">$16,546,000</font><font style="font-size: 10pt; font-family: inherit;"> and </font><font style="font-size: 10pt; font-family: inherit;">$15,208,000</font><font style="font-size: 10pt; font-family: inherit;"> at </font><font style="font-size: 10pt; font-family: inherit;">December&#160;31, 2017</font><font style="font-size: 10pt; font-family: inherit;"> and </font><font style="font-size: 10pt; font-family: inherit;">2016</font><font style="font-size: 10pt; font-family: inherit;">, respectively.</font></div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;">&#160;</div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;">The Company places its cash and cash equivalents with other financial institutions and limits the amount of credit exposure to any one financial institution. From time to time, the balances at these financial institutions exceed the amount insured by the Federal Deposit Insurance Corporation. The Company has not experienced any losses on these accounts and management considers this to be a normal business risk.</div></div> 14087118 57208226 44278576 -11216325 1868000 1565000 113027000 113027000 170235000 113027000 170235000 170235000 68748000 68748000 113026884 170235110 68748308 82835426 79964633 2068000 3936000 503000 64097287 66243037 34290617 21646894 21944300 1320723 1585000 926000 5302000 <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="font-size: 10pt; font-family: inherit; text-align: left; line-height: 120%;">Purchased credit impaired loans acquired from Capstone during the year ended December 31, 2017 for which it was probable at acquisition that all contractually required payments would not be collected are as follows (in thousands):</div><div style="font-size: 10pt; text-align: center; padding-top: 10px; padding-left: 0px; line-height: normal; text-indent: 0px;"><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Times New Roman; border-collapse: collapse; text-align: left; margin-left: auto; width: 82.26%; margin-right: auto;"><tr><td colspan="5"></td></tr><tr><td style="width: 79%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 18%;"></td><td style="width: 1%;"></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="3" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; font-weight: bold; text-align: center;">2017</div></td></tr><tr><td style="vertical-align: bottom; 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Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management's credit evaluation of the customer. Collateral held varies, but may include accounts receivable, inventory, property and equipment, residential real estate, and income-producing commercial properties.</div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;">&#160;</div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;">Standby letters of credit issued by the Company are conditional commitments to guarantee the performance of a customer to a third party. 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text-align: left;">Capstone options assumed in business combination</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">130,469</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">11.76</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Outstanding at December&#160;31, 2017</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">316,574</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">11.82</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr></table></div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;">&#160;</div><div style="font-size: 10pt; padding-top: 10px; padding-left: 0px; line-height: normal; text-indent: 0px;"><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Times New Roman; border-collapse: collapse; text-align: left; width: 99.8%;"><tr><td colspan="8"></td></tr><tr><td style="width: 64%;"></td><td style="width: 1%;"></td><td style="width: 16%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 15%;"></td><td style="width: 1%;"></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: center;">Number</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="3" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: center;">Weighted</div><div style="font-size: 10pt; font-family: inherit; text-align: center;">Average</div><div style="font-size: 10pt; font-family: inherit; text-align: center;">Exercisable</div><div style="font-size: 10pt; font-family: inherit; text-align: center;">Price</div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Outstanding at December&#160;31, 2015</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">817,414</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">10.62</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Granted</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">&#8212;</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">&#8212;</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Exercised</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">(89,556</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">)</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">8.98</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Forfeited</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">(10,334</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">)</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">28.49</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: justify;">Outstanding at December&#160;31, 2016</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">717,524</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">10.57</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr></table></div><div style="font-size: 10pt; font-family: inherit; text-align: left; line-height: 120%;">&#160;</div><div style="font-size: 10pt; text-align: justify; line-height: 120%;"><font style="font-size: 10pt; font-family: inherit;">Information pertaining to options outstanding at </font><font style="font-size: 10pt; font-family: inherit;">December&#160;31, 2017</font><font style="font-size: 10pt; font-family: inherit;">, is as follows:&#160;</font></div><div style="font-size: 10pt; padding-top: 10px; padding-left: 0px; line-height: normal; text-indent: 0px;"><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Times New Roman; border-collapse: collapse; text-align: left; width: 100%;"><tr><td colspan="16"></td></tr><tr><td style="width: 19%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 14%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 15%;"></td><td style="width: 1%;"></td><td style="width: 14%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 14%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 14%;"></td><td style="width: 1%;"></td></tr><tr><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="7" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: center;">Options Outstanding</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="5" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: center;">Options Exercisable</div></td></tr><tr><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: center;">Weighted-</div><div style="font-size: 10pt; font-family: inherit; text-align: center;">Average</div><div style="font-size: 10pt; font-family: inherit; text-align: center;">Remaining</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: center;">Weighted-</div><div style="font-size: 10pt; font-family: inherit; text-align: center;">Average</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: center;">Weighted-</div><div style="font-size: 10pt; font-family: inherit; text-align: center;">Average</div></td></tr><tr><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: center;">Exercise</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: center;">Number</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: center;">Contractual</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: center;">Exercise</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: center;">Number</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: center;">Exercise</div></td></tr><tr><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: center;">Prices</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: center;">Outstanding</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: center;">Life</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: center;">Price</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: center;">Exercisable</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: center;">Price</div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">6.60</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">37,500</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: center;">4.2 years</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">6.60</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">37,500</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">6.60</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">6.80</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">16,875</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: center;">3.2 years</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">6.80</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">16,875</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">6.80</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">9.48</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">26,875</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: center;">5.2 years</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">9.48</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">26,875</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">9.48</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">9.60</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">35,625</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: center;">6.2 years</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">9.60</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">35,625</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">9.60</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">11.67</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">2,000</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: center;">3.1 years</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">11.67</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">2,000</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">11.67</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">11.76</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">130,469</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: center;">1.9 years</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">11.76</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">130,469</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">11.76</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">14.40</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">12,805</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: center;">1.2 years</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">14.40</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">12,805</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">14.40</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">15.05</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">41,259</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: center;">7.8 years</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">15.05</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">17,804</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; 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The total fair value of shares underlying the options which vested during the periods ended </font><font style="font-size: 10pt; font-family: inherit;">December&#160;31, 2017</font><font style="font-size: 10pt; font-family: inherit;"> and </font><font style="font-size: 10pt; font-family: inherit;">2016</font><font style="font-size: 10pt; font-family: inherit;">, was </font><font style="font-size: 10pt; font-family: inherit;">$313,977 </font><font style="font-size: 10pt; font-family: inherit;">and </font><font style="font-size: 10pt; font-family: inherit;">$95,658</font><font style="font-size: 10pt; font-family: inherit;">, respectively. The income tax benefit recognized for the exercise of options for the periods ended </font><font style="font-size: 10pt; font-family: inherit;">December&#160;31, 2017</font><font style="font-size: 10pt; font-family: inherit;"> and </font><font style="font-size: 10pt; font-family: inherit;">2016</font><font style="font-size: 10pt; font-family: inherit;"> was </font><font style="font-size: 10pt; font-family: inherit;">$1,331,689</font><font style="font-size: 10pt; font-family: inherit;"> and </font><font style="font-size: 10pt; font-family: inherit;">$252,931</font><font style="font-size: 10pt; font-family: inherit;"> respectively.</font></div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;"><br /></div><div style="font-size: 10pt; text-align: justify; line-height: 120%;"><font style="font-size: 10pt; font-family: inherit;">The intrinsic value of options exercised during the periods ended </font><font style="font-size: 10pt; font-family: inherit;">December&#160;31, 2017</font><font style="font-size: 10pt; font-family: inherit;"> and </font><font style="font-size: 10pt; font-family: inherit;">2016</font><font style="font-size: 10pt; font-family: inherit;"> was </font><font style="font-size: 10pt; font-family: inherit;">$5,468,780</font><font style="font-size: 10pt; font-family: inherit;"> and </font><font style="font-size: 10pt; font-family: inherit;">$660,476</font><font style="font-size: 10pt; font-family: inherit;">, respectively. 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The cost is expected to be recognized over a weighted-average period of </font><font style="font-size: 10pt; font-family: inherit;">1.0 years</font><font style="font-size: 10pt; font-family: inherit;">. 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padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 20px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Total assets</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">214,806</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">106,483</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">LIABILITIES AND STOCKHOLDERS&#8217; EQUITY</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">&#160;</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">&#160;</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 12px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Other liabilities</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">(1,046</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">)</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">1,243</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 12px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Other borrowings</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">10,000</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">&#8212;</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 20px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Total liabilities</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">8,954</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">1,243</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr style="height: 40px;"><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 12px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Stockholders&#8217; equity</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">205,852</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">105,240</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 20px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Total liabilities and stockholders&#8217; equity</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">214,806</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">106,483</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr></table></div><div style="font-size: 10pt; font-family: inherit; line-height: 120%;">&#160;</div><div style="font-size: 10pt; padding-top: 10px; padding-left: 0px; line-height: normal; text-indent: 0px;"><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Times New Roman; border-collapse: collapse; text-align: left; width: 99.8%;"><tr><td colspan="9"></td></tr><tr><td style="width: 70%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 12%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 12%;"></td><td style="width: 1%;"></td></tr><tr><td style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: center;">CONDENSED STATEMENTS OF INCOME</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: center;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: center;">&#160;</div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="7" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: center;">Years Ended December 31,</div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: center;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="3" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: center;">2017</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="3" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: center;">2016</div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">INCOME</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">&#160;</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">&#160;</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 12px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Dividends</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">&#8212;</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">3,000</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 12px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Interest income</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">&#8212;</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">&#8212;</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">&#8212;</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">3,000</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">EXPENSES</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">&#160;</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">&#160;</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 12px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Interest expense</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">69</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">17</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 12px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Other operating expenses</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">2,657</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">1,146</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">(Loss) income before equity in undistributed earnings of subsidiaries and income tax benefit</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">(2,726</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">)</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">1,837</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Equity in undistributed earnings of subsidiaries</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">7,134</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">3,520</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Income tax benefit</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">607</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">442</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 20px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Net income</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">5,015</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">5,799</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 12px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Preferred stock dividend requirements</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">195</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">1,022</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 20px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Net income available to common stockholders</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">4,820</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">4,777</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr></table></div><div>&#160;</div><div style="font-size: 10pt; padding-top: 10px; padding-left: 0px; line-height: normal; text-indent: 0px;"><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Times New Roman; border-collapse: collapse; text-align: left; width: 99.8%;"><tr><td colspan="9"></td></tr><tr><td style="width: 70%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 12%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 1%;"></td><td style="width: 12%;"></td><td style="width: 1%;"></td></tr><tr><td style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: center;">STATEMENTS OF CASH FLOWS</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="7" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: center;">Years Ended December 31,</div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="3" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: center;">2017</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="3" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: center;">2016</div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">CASH FLOWS FROM OPERATING ACTIVITIES</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">&#160;</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">&#160;</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Net income</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">5,015</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">5,799</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Adjustments to reconcile net income to net cash (used in) provided by operating activities:</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">&#160;</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">&#160;</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Equity in undistributed income of subsidiary</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">(7,134</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">)</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">(3,520</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">)</div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Other</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">(2,449</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">)</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">1,234</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Net cash (used in) provided by operating activities</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">(4,568</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">)</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">3,513</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">CASH FLOWS FROM FINANCING ACTIVITIES</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">&#160;</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">&#160;</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Proceeds from issuance of note payable</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">10,000</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">&#8212;</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Repayment of note payable</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">&#8212;</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">(2,000</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">)</div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Redemption of preferred stock</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">(12,000</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">)</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">&#8212;</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Proceeds from issuance of common stock</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">37,853</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">804</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Payment of dividends on preferred stock</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">(195</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">)</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">(752</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">)</div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Net cash provided by (used in) financing activities</div></td><td style="vertical-align: bottom; 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border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">)</div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">CASH FLOWS FROM INVESTING ACTIVITIES</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">&#160;</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">&#160;</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Net cash for purchase of Capstone Bancshares, Inc.</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">(14,222</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-right: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">)</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">&#8212;</div></td><td style="vertical-align: bottom; background-color: #cceeff;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Capital injection in subsidiary</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">(15,000</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">)</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="3" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">Net cash used in investing activities</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">(29,222</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">)</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">&#8212;</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">NET INCREASE IN CASH AND CASH EQUIVALENTS</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">1,868</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">1,565</div></td><td style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">CASH AND CASH EQUIVALENTS, beginning of year</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">2,068</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td colspan="2" style="vertical-align: bottom; border-bottom: #000000 1px solid; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">503</div></td><td style="vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td><td colspan="3" style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px; background-color: #cceeff;"><div style="overflow: hidden; font-size: 10pt; height: 18px; font-family: inherit;"></div></td></tr><tr><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">CASH AND CASH EQUIVALENTS, end of year</div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">3,936</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td><td style="vertical-align: bottom; padding-bottom: 2px; padding-top: 2px; padding-left: 2px; padding-right: 2px;"><div style="overflow: hidden; font-size: 10pt; font-family: inherit;">&#160;</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px; padding-left: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: left;">$</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double; padding-bottom: 2px; padding-top: 2px;"><div style="font-size: 10pt; font-family: inherit; text-align: right;">2,068</div></td><td style="vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: inherit; text-align: left;"><br /></div></td></tr></table></div></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="font-size: 10pt; font-family: inherit; font-style: italic; text-align: justify; text-decoration: underline; line-height: 120%;">Variable interest entities:</div><div style="font-size: 10pt; font-family: inherit; text-align: left; line-height: 120%;">&#160;</div><div style="font-size: 10pt; text-align: justify; line-height: 120%;"><font style="font-size: 10pt; font-family: inherit;">An entity is referred to as a variable interest entity (VIE) if it meets the criteria outlined in ASC Topic 810, which are: (1) the entity has equity that is insufficient to permit the entity to finance its activities without additional subordinated financial support from other parties or (2) the entity has equity investors that cannot make significant decisions about the entity's operations or that do not absorb the expected losses or receive the expected returns of the entity. A VIE must be consolidated by the Company if it is deemed to be the primary beneficiary of the VIE, which is the party involved with the VIE that has a majority of the expected losses, expected residual returns, or both. At </font><font style="font-size: 10pt; font-family: inherit;">December&#160;31, 2017</font><font style="font-size: 10pt; font-family: inherit;">, the Company had an investment in Community Advantage Fund, LLC that qualified as an unconsolidated VIE.</font></div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;"><br /></div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;">The Company&#8217;s investment in a partnership consists of an equity interest in a lending partnership for the purposes of loaning funds to an unrelated entity. This entity will use the funds to make loans through the SBA Community Advantage loan Initiative.&#160;</div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;">&#160;</div><div style="font-size: 10pt; font-family: inherit; text-align: justify; line-height: 120%;">The Company uses the equity method when it owns an interest in a partnership and can exert significant influence over the partnership&#8217;s operations. Under the equity method, the Company&#8217;s ownership interest in the partnership&#8217;s capital is reported as an investment on its consolidated balance sheets in other assets and the Company&#8217;s allocable share of the income or loss from the partnership is reported in noninterest income or expense in the consolidated statements of income. The Company ceases recording losses on an investment in partnership when the cumulative losses and distributions from the partnership exceed the carrying amount of the investment and any advances made by the Company. After the Company&#8217;s investment in such partnership reaches zero, cash distributions received from these investments are recorded as income.</div></div>