Toggle SGML Header (+)


Section 1: 10-Q (10-Q)

qcrh_Current_Folio_10Q

Table of Contents

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended March 31, 2020

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

For the transition period from ______to________

Commission file number 0‑22208

QCR HOLDINGS, INC.

(Exact name of Registrant as specified in its charter)

Delaware

42-1397595

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

 

3551 7th Street, Moline, Illinois 61265

(Address of principal executive offices, including zip code)

(309) 736‑3580

(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes [ X ]      No [    ]

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§  232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes [ X ]      No [    ]

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

 

 

 

Large accelerated filer [   ]

Accelerated filer [ X ]

Non-accelerated filer  [   ]

Smaller reporting company [   ]

Emerging growth company [   ]

 

 

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b‑2 of the Exchange Act).

Yes [    ]      No [ X ]

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

 

 

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $1.00 Par Value

QCRH

The Nasdaq Global Market

 

Indicate the number of shares outstanding of each of the issuer's classes of common stock as of the latest practicable date: As of May 1, 2020, the Registrant had outstanding 15,773,518 shares of common stock, $1.00 par value per share.

 

 

1

Table of Contents

QCR HOLDINGS, INC. AND SUBSIDIARIES

TABLE OF CONTENTS

 

 

 

 

 

 

 

 

 

 

 

Page
Number(s)

Part I

    

FINANCIAL INFORMATION

 

 

 

 

 

 

 

 

 

Item 1

    

Consolidated Financial Statements (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Consolidated Balance Sheets
As of March 31, 2020 and December 31, 2019

 

4

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Income
For the Three Months Ended March 31, 2020 and 2019

5

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Comprehensive Income
For the Three Months Ended March 31, 2020 and 2019

6

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Changes in Stockholders' Equity
For the Three Months Ended March 31, 2020 and 2019

7

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Cash Flows
For the Three Months Ended March 31, 2020 and 2019

8

 

 

 

 

 

 

 

 

 

 

Notes to Consolidated Financial Statements

10

 

 

 

 

 

 

 

 

 

 

Note 1. Summary of Significant Accounting Policies

10

 

 

 

 

Note 2. Investment Securities

12

 

 

 

 

Note 3. Loans/Leases Receivable

16

 

 

 

 

Note 4. Derivatives and Hedging Activities

25

 

 

 

 

Note 5. Earnings Per Share

26

 

 

 

 

Note 6. Fair Value

27

 

 

 

 

Note 7. Business Segment Information

29

 

 

 

 

Note 8. Regulatory Capital Requirements

30

 

 

 

 

Note 9. Subsequent Event

32

 

 

 

 

 

 

 

 

Item 2

 

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

 

 

 

 

 

 

 

 

 

 

 

Introduction

33

 

 

 

 

General

33

 

 

 

 

Impact of COVID-19

33

 

 

 

 

Executive Overview

37

 

 

 

 

Strategic Financial Metrics

38

 

 

 

 

Strategic Developments

39

 

 

 

 

GAAP to Non-GAAP Reconciliations

40

 

 

 

 

Net Interest Income - (Tax Equivalent Basis)

42

 

 

 

 

Critical Accounting Policies

44

 

 

 

 

        Goodwill

44

 

 

 

 

        Allowance for Loan and Lease Losses

45

2

Table of Contents

 

 

 

 

 

 

 

 

 

 

 

 

 

Results of Operations

45

 

 

 

 

Interest Income

45

 

 

 

 

Interest Expense

 

 

 

 

 

Provision for Loan/Lease Losses

46

 

 

 

 

Noninterest Income

47

 

 

 

 

Noninterest Expense

49

 

 

 

 

Income Taxes

51

 

 

 

 

Financial Condition

52

 

 

 

 

Investment Securities

52

 

 

 

 

Loans/Leases

53

 

 

 

 

Allowance for Estimated Losses on Loans/Leases

55

 

 

 

 

Nonperforming Assets

56

 

 

 

 

Deposits

57

 

 

 

 

Borrowings

57

 

 

 

 

Stockholders' Equity

58

 

 

 

 

Liquidity and Capital Resources

59

 

 

 

 

Special Note Concerning Forward-Looking Statements

60

 

 

 

 

 

 

 

 

Item 3

    

Quantitative and Qualitative Disclosures About Market Risk

62

 

 

 

 

 

 

 

 

Item 4

 

Controls and Procedures

64

 

 

 

 

 

 

Part II 

    

OTHER INFORMATION

65

 

 

 

 

 

 

 

 

Item 1

 

Legal Proceedings

65

 

 

 

 

 

 

 

 

Item 1A

 

Risk Factors

65

 

 

 

 

 

 

 

 

Item 2

 

Unregistered Sales of Equity Securities and Use of Proceeds

67

 

 

 

 

 

 

 

 

Item 3

 

Defaults Upon Senior Securities

67

 

 

 

 

 

 

 

 

Item 4

 

Mine Safety Disclosures

67

 

 

 

 

 

 

 

 

Item 5

 

Other Information

67

 

 

 

 

 

 

 

 

Item 6

 

Exhibits

68

 

 

 

 

 

 

Signatures 

69

Throughout this Quarterly Report on Form 10-Q, we use certain acronyms and abbreviations, as defined in Note 1 to the Consolidated Financial Statements.

 

3

Table of Contents

Part I

Item 1

 

QCR HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

As of March 31, 2020 and December 31, 2019

 

 

 

 

 

 

 

 

    

March 31, 

    

December 31, 

 

 

2020

 

2019

 

 

(dollars in thousands)

Assets

 

 

 

 

 

 

Cash and due from banks

 

$

169,827

 

$

76,254

Federal funds sold

 

 

4,695

 

 

9,800

Interest-bearing deposits at financial institutions

 

 

202,013

 

 

147,891

 

 

 

 

 

 

 

Securities held to maturity, at amortized cost

 

 

431,283

 

 

400,646

Securities available for sale, at fair value

 

 

253,288

 

 

210,695

Total securities

 

 

684,571

 

 

611,341

 

 

 

 

 

 

 

Loans receivable held for sale

 

 

3,994

 

 

3,673

Loans/leases receivable held for investment

 

 

3,700,674

 

 

3,686,532

Gross loans/leases receivable

 

 

3,704,668

 

 

3,690,205

Less allowance for estimated losses on loans/leases

 

 

(42,233)

 

 

(36,001)

Net loans/leases receivable

 

 

3,662,435

 

 

3,654,204

 

 

 

  

 

 

  

Bank-owned life insurance

 

 

59,098

 

 

58,834

Premises and equipment, net

 

 

73,319

 

 

73,859

Restricted investment securities

 

 

21,209

 

 

23,252

Other real estate owned, net

 

 

3,298

 

 

4,129

Goodwill

 

 

74,248

 

 

74,748

Intangibles

 

 

14,421

 

 

14,970

Derivatives

 

 

195,973

 

 

87,827

Assets held for sale

 

 

10,758

 

 

11,966

Other assets

 

 

56,210

 

 

59,975

Total assets

 

$

5,232,075

 

$

4,909,050

 

 

 

  

 

 

  

Liabilities and Stockholders' Equity

 

 

  

 

 

  

Liabilities:

 

 

  

 

 

  

Deposits:

 

 

  

 

 

  

Noninterest-bearing

 

$

829,782

 

$

777,224

Interest-bearing

 

 

3,340,696

 

 

3,133,827

Total deposits

 

 

4,170,478

 

 

3,911,051

 

 

 

  

 

 

  

Short-term borrowings

 

 

43,067

 

 

13,423

Federal Home Loan Bank advances

 

 

95,000

 

 

159,300

Subordinated notes

 

 

68,455

 

 

68,394

Junior subordinated debentures

 

 

37,877

 

 

37,838

Derivatives

 

 

203,744

 

 

88,437

Liabilities held for sale

 

 

3,130

 

 

5,003

Other liabilities

 

 

71,185

 

 

90,253

Total liabilities

 

 

4,692,936

 

 

4,373,699

 

 

 

  

 

 

  

 

 

 

  

 

 

  

Stockholders' Equity:

 

 

  

 

 

  

Preferred stock, $1 par value; shares authorized 250,000 March 2020 and December 2019 - no shares issued or outstanding

 

 

 —

 

 

 —

Common stock, $1 par value; shares authorized 20,000,000 March 2020 - 15,773,736 shares issued and outstanding December 2019 - 15,828,098 shares issued and outstanding

 

 

15,774

 

 

15,828

Additional paid-in capital

 

 

273,867

 

 

274,785

Retained earnings

 

 

254,287

 

 

245,836

Accumulated other comprehensive income (loss):

 

 

 

 

 

 

Securities available for sale

 

 

4,697

 

 

2,817

Derivatives

 

 

(9,486)

 

 

(3,915)

Total stockholders' equity

 

 

539,139

 

 

535,351

Total liabilities and stockholders' equity

 

$

5,232,075

 

$

4,909,050

 

See Notes to Consolidated Financial Statements (Unaudited)

4

Table of Contents

Part I

Item 1

QCR HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

Three Months Ended March 31, 2020 and 2019

 

 

 

 

 

 

 

 

 

 

    

2020

    

2019

 

 

 

(dollars in thousands, except share data)

 

Interest and dividend income:

 

 

 

 

 

 

 

Loans/leases, including fees

 

$

43,159

 

$

45,568

 

Securities:

 

 

 

 

 

 

 

Taxable

 

 

1,727

 

 

1,666

 

Nontaxable

 

 

3,459

 

 

3,545

 

Interest-bearing deposits at financial institutions

 

 

361

 

 

923

 

Restricted investment securities

 

 

258

 

 

307

 

Federal funds sold

 

 

18

 

 

93

 

Total interest and dividend income

 

 

48,982

 

 

52,102

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

Deposits

 

 

9,206

 

 

12,479

 

Short-term borrowings

 

 

64

 

 

71

 

Federal Home Loan Bank advances

 

 

449

 

 

903

 

Other borrowings

 

 

 —

 

 

605

 

Subordinated notes

 

 

994

 

 

564

 

Junior subordinated debentures

 

 

571

 

 

572

 

Total interest expense

 

 

11,284

 

 

15,194

 

Net interest income

 

 

37,698

 

 

36,908

 

Provision for loan/lease losses

 

 

8,367

 

 

2,134

 

Net interest income after provision for loan/lease losses

 

 

29,331

 

 

34,774

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

Trust department fees

 

 

2,312

 

 

2,493

 

Investment advisory and management fees

 

 

1,727

 

 

1,736

 

Deposit service fees

 

 

1,477

 

 

1,554

 

Gains on sales of residential real estate loans, net

 

 

652

 

 

369

 

Gains on sales of government guaranteed portions of loans, net

 

 

 —

 

 

31

 

Swap fee income

 

 

6,804

 

 

3,198

 

Earnings on bank-owned life insurance

 

 

329

 

 

540

 

Debit card fees

 

 

758

 

 

792

 

Correspondent banking fees

 

 

215

 

 

216

 

Other

 

 

922

 

 

1,064

 

Total noninterest income

 

 

15,196

 

 

11,993

 

 

 

 

 

 

 

 

 

Noninterest expense:

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

18,519

 

 

20,879

 

Occupancy and equipment expense

 

 

4,032

 

 

3,694

 

Professional and data processing fees

 

 

3,369

 

 

2,750

 

Post-acquisition compensation, transition and integration costs

 

 

151

 

 

134

 

Disposition costs

 

 

517

 

 

 —

 

FDIC insurance, other insurance and regulatory fees

 

 

683

 

 

964

 

Loan/lease expense

 

 

228

 

 

214

 

Net cost of and gains/losses on operations of other real estate

 

 

13

 

 

298

 

Advertising and marketing

 

 

682

 

 

785

 

Bank service charges

 

 

504

 

 

483

 

Losses on debt extinguishment

 

 

147

 

 

 —

 

Correspondent banking expense

 

 

216

 

 

204

 

Intangibles amortization

 

 

549

 

 

532

 

Goodwill impairment

 

 

500

 

 

 —

 

Other

 

 

1,305

 

 

1,498

 

Total noninterest expense

 

 

31,415

 

 

32,435

 

Net income before income taxes

 

 

13,112

 

 

14,332

 

Federal and state income tax expense

 

 

1,884

 

 

1,414

 

Net income

 

$

11,228

 

$

12,918

 

 

 

 

 

 

 

 

 

Basic earnings per common share

 

$

0.71

 

$

0.82

 

Diluted earnings per common share

 

$

0.70

 

$

0.81

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

15,796,796

 

 

15,693,345

 

Weighted average common and common equivalent shares outstanding

 

 

16,011,456

 

 

15,922,940

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share

 

$

0.06

 

$

0.06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See Notes to Consolidated Financial Statements (Unaudited)

 

5

Table of Contents

Part I

Item 1

QCR HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

Three months ended March 31, 2020 and 2019

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

    

 

    

2020

    

2019

 

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

Net income

 

$

11,228

 

$

12,918

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains on securities available for sale:

 

 

 

 

 

 

 

Unrealized holding gains arising during the period before tax

 

 

2,481

 

 

4,144

 

 

 

 

2,481

 

 

4,144

 

Unrealized losses on derivatives:

 

 

 

 

 

 

 

Unrealized holding losses arising during the period before tax

 

 

(7,161)

 

 

(1,162)

 

Less reclassification adjustment for caplet amortization before tax

 

 

(110)

 

 

(157)

 

 

 

 

(7,051)

 

 

(1,005)

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss), before tax

 

 

(4,570)

 

 

3,139

 

Tax expense (benefit)

 

 

(879)

 

 

795

 

Other comprehensive income (loss), net of tax

 

 

(3,691)

 

 

2,344

 

 

 

 

 

 

 

 

 

Comprehensive income

 

$

7,537

 

$

15,262

 

 

 

See Notes to Consolidated Financial Statements (Unaudited)

 

6

Table of Contents

Part I

Item 1

QCR HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED)

Three months ended March 31, 2020 and 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

Additional

 

 

 

 

Other

 

 

 

 

 

Common

 

Paid-In

 

Retained

 

Comprehensive

 

 

 

 

    

Stock

    

Capital

    

Earnings

    

(Loss)

    

Total

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance December 31, 2019

 

$

15,828

 

$

274,785

 

$

245,836

 

$

(1,098)

 

$

535,351

Net income

 

 

 —

 

 

 —

 

 

11,228

 

 

 —

 

 

11,228

Other comprehensive income, net of tax

 

 

 —

 

 

 —

 

 

 —

 

 

(3,691)

 

 

(3,691)

Common cash dividends declared, $0.06 per share

 

 

 —

 

 

 —

 

 

(942)

 

 

 —

 

 

(942)

Repurchase and cancellation of 100,932 shares of common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   as a result of a share repurchase program

 

 

(101)

 

 

(1,844)

 

 

(1,835)

 

 

 —

 

 

(3,780)

Issuance of 5,553 shares of common stock as a result of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  stock purchased under the Employee Stock Purchase Plan

 

 

 6

 

 

208

 

 

 —

 

 

 —

 

 

214

Issuance of 31,729 shares of common stock as a result of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  stock options exercised

 

 

32

 

 

274

 

 

 —

 

 

 —

 

 

306

Stock-based compensation expense

 

 

 —

 

 

641

 

 

 —

 

 

 —

 

 

641

Restricted stock awards and restricted stock units- 10,300 shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   of common stock , net of restricted stock units

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   withheld for payment for taxes

 

 

10

 

 

(8)

 

 

 —

 

 

 —

 

 

 2

Exchange of 1,012 shares of common stock in connection

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   with payroll taxes for restricted stock and in connection

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   with stock options exercised

 

 

(1)

 

 

(189)

 

 

 —

 

 

 —

 

 

(190)

Balance, March 31, 2020

 

$

15,774

 

$

273,867

 

$

254,287

 

$

(4,789)

 

$

539,139

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

Additional

 

 

 

 

Other

 

 

 

 

 

Common

 

Paid-In

 

Retained

 

Comprehensive

 

 

 

 

    

Stock

    

Capital

    

Earnings

    

(Loss)

    

Total

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance December 31, 2018

 

$

15,718

 

$

270,761

 

$

192,203

 

$

(5,544)

 

$

473,138

Net income

 

 

 —

 

 

 —

 

 

12,918

 

 

 —

 

 

12,918

Other comprehensive income, net of tax

 

 

 —

 

 

 —

 

 

 —

 

 

2,344

 

 

2,344

Common cash dividends declared, $0.06 per share

 

 

 —

 

 

 —

 

 

(942)

 

 

 —

 

 

(942)

Issuance of 4,446 shares of common stock as a result of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  stock purchased under the Employee Stock Purchase Plan

 

 

 4

 

 

124

 

 

 —

 

 

 —

 

 

128

Issuance of 25,238 shares of common stock as a result of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  stock options exercised

 

 

25

 

 

263

 

 

 —

 

 

 —

 

 

288

Stock-based compensation expense

 

 

 —

 

 

722

 

 

 —

 

 

 —

 

 

722

Restricted stock awards and restricted stock units - 12,719

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  shares of common stock, net of restricted stock units

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  withheld for payment of taxes

 

 

13

 

 

(50)

 

 

 —

 

 

 —

 

 

(37)

Exchange of 5,169 shares of common stock in connection

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   with payroll taxes for restricted stock vested and in

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   connection with stock options exercised

 

 

(5)

 

 

(147)

 

 

 —

 

 

 —

 

 

(152)

Balance, March 31, 2019

 

$

15,755

 

$

271,673

 

$

204,179

 

$

(3,200)

 

$

488,407

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See Notes to Consolidated Financial Statements (Unaudited)

 

 

7

Table of Contents

Part I

Item 1

QCR HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Three months ended March 31, 2020 and 2019

 

 

 

 

 

 

 

 

 

    

2020

    

2019

 

 

 

(dollars in thousands)

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

  

 

 

  

 

Net income

 

$

11,228

 

$

12,918

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

  

 

 

  

 

Depreciation

 

 

1,338

 

 

1,235

 

Provision for loan/lease losses

 

 

8,367

 

 

2,134

 

Stock-based compensation expense

 

 

641

 

 

722

 

Deferred compensation expense accrued

 

 

913

 

 

733

 

Losses on other real estate owned, net

 

 

 4

 

 

224

 

Amortization of premiums on securities, net

 

 

159

 

 

448

 

Caplet amortization

 

 

110

 

 

 —

 

Loans originated for sale

 

 

(34,459)

 

 

(18,034)

 

Proceeds on sales of loans

 

 

34,790

 

 

17,735

 

Gains on sales of residential real estate loans

 

 

(652)

 

 

(369)

 

Gains on sales of government guaranteed portions of loans

 

 

 —

 

 

(31)

 

Loss on debt extinguishment, net

 

 

147

 

 

 —

 

Gains on sales of premises and equipment

 

 

(8)

 

 

(47)

 

Amortization of intangibles

 

 

549

 

 

532

 

Accretion of acquisition fair value adjustments, net

 

 

(625)

 

 

(1,069)

 

Increase in cash value of bank-owned life insurance

 

 

(329)

 

 

(540)

 

Goodwill impairment

 

 

500

 

 

 —

 

Decrease in other assets

 

 

5,917

 

 

1,121

 

Decrease in other liabilities

 

 

(21,998)

 

 

(9,110)

 

Net cash provided by operating activities

 

$

6,592

 

$

8,602

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

  

 

 

  

 

Net decrease in federal funds sold

 

 

5,105

 

 

24,526

 

Net increase in interest-bearing deposits at financial institutions

 

 

(54,122)

 

 

(80,962)

 

Proceeds from sales of other real estate owned

 

 

827

 

 

202

 

Activity in securities portfolio:

 

 

 

 

 

 

 

Purchases

 

 

(83,987)

 

 

(4,079)

 

Calls, maturities and redemptions

 

 

3,872

 

 

4,510

 

Paydowns

 

 

9,182

 

 

10,426

 

Activity in restricted investment securities:

 

 

  

 

 

  

 

Purchases

 

 

(1,874)

 

 

(3,110)

 

Redemptions

 

 

3,917

 

 

5,895

 

Net increase in loans/leases originated and held for investment

 

 

(15,596)

 

 

(65,777)

 

Purchase of premises and equipment

 

 

(798)

 

 

(3,970)

 

Proceeds from sales of premises and equipment

 

 

 8

 

 

117

 

Net cash (used in) investing activities

 

$

(133,466)

 

$

(112,222)

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

  

 

 

  

 

Net increase in deposit accounts

 

 

259,310

 

 

217,257

 

Net increase (decrease)  in short-term borrowings

 

 

29,644

 

 

(12,888)

 

Activity in Federal Home Loan Bank advances:

 

 

  

 

 

  

 

Term advances

 

 

45,000

 

 

5,000

 

Calls and maturities

 

 

 —

 

 

(15,000)

 

Net change in short-term and overnight advances

 

 

(109,300)

 

 

(130,365)

 

Activity in other borrowings:

 

 

  

 

 

  

 

Calls, maturities and scheduled principal payments

 

 

 —

 

 

(1,937)

 

Prepayments

 

 

 —

 

 

(21,313)

 

Paydown of revolving line of credit

 

 

 —

 

 

(9,000)

 

Proceeds from subordinated notes

 

 

 —

 

 

63,393

 

Payment of cash dividends on common stock

 

 

(947)

 

 

(939)

 

Proceeds from issuance of common stock, net

 

 

520

 

 

416

 

Repurchase and cancellation of shares