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Section 1: 8-K (FORM 8-K)

fcbc20200203_8k.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

 
 

Date of Report (Date of earliest event reported): February 04, 2020

 
 
 

FIRST COMMUNITY BANKSHARES, INC.

 

(Exact name of registrant as specified in its charter)

 
 

Virginia

 

000-19297

 

55-0694814

(State or other jurisdiction

 

(Commission

 

(IRS Employer

of incorporation)

 

File Number)

 

Identification No.)

 
 

P.O. Box 989

Bluefield, Virginia

 

24605-0989

(Address of principal executive offices)

 

(Zip Code)

 
 

Registrant’s telephone number, including area code: (276) 326-9000

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

   
☐ 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

   

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

   

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

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)

 

FCBC

 

NASDAQ Global Select

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

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. ☐

 

 

 

 

Item 2.02            Results of Operations and Financial Condition.

 

On February 04, 2020, First Community Bankshares, Inc. (the “Company”) announced by press release its earnings for the fourth quarter of 2019. A copy of the press release is attached hereto as Exhibit 99.1.

 

 

Item 9.01            Financial Statements and Exhibits.

 

(d)

The following exhibit is included with this report:

 

Exhibit No.

 

Exhibit Description

 

 

 

99.1

 

Earnings release dated February 04, 2020

 

Forward-Looking Statements 

 

This Current Report on Form 8-K contains forward-looking statements. These forward-looking statements are based on current expectations that involve risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may differ materially. These risks include:  changes in business or other market conditions; the timely development, production and acceptance of new products and services; the challenge of managing asset/liability levels; the management of credit risk and interest rate risk; the difficulty of keeping expense growth at modest levels while increasing revenues; and other risks detailed from time to time in the Company’s Securities and Exchange Commission reports, including but not limited to the Annual Report on Form 10-K for the most recent year ended. Pursuant to the Private Securities Litigation Reform Act of 1995, the Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

FIRST COMMUNITY BANKSHARES, INC.

     

Date:

February 04, 2020

 

By:

/s/ David D. Brown

     
   

David D. Brown

   

Chief Financial Officer

 

(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

ex_171216.htm

Exhibit 99.1

 

 

 

NEWS RELEASE

FOR IMMEDIATE RELEASE:

 

FOR MORE INFORMATION, CONTACT:

February 4, 2020

 

David D. Brown

   

(276) 326-9000

 

First Community Bankshares, Inc. Announces Fourth Quarter and Full Year Results

 

Bluefield, Virginia – First Community Bankshares, Inc. (NASDAQ: FCBC) (www.firstcommunitybank.com) (the “Company”) today reported its unaudited results of operations and other financial information for the quarter ended December 31, 2019. The Company reported net income of $9.56 million, or $0.61 per diluted common share, for the quarter ended December 31, 2019, which was an increase of $0.04, or 7.02%, over the same quarter of 2018. For the full year, the Company earned $38.80 million, or $2.46 per diluted share, an increase of $2.46 million over 2018.

 

Additionally, the Company recently declared a quarterly cash dividend to common shareholders of twenty-five cents ($0.25) per common share, an increase of four cents $(0.04) over the same quarter last year. 2020 is the 35th consecutive year of regular dividends to common shareholders.

 

Fourth Quarter and Full Year 2019 Highlights

 

At the close of business on December 31, 2019, the Company closed the acquisition of Highlands Bankshares, Inc., headquartered in Abingdon, Virginia, with total assets of $563 million. The completion of the transaction increased total consolidated assets to $2.80 billion.

 

Income Statement

 

o

Diluted earnings per share increased $0.04 to $0.61 compared to the same quarter of 2018, an increase of 7.02%.

 

o

Compared to the same quarter last year, return on average assets for the quarter increased 0.08% to 1.71% and return on average equity for the quarter increased 0.07% to 11.08%.

 

o

Net interest margin decreased 29 basis points to 4.47% compared to the same quarter of 2018.

 

o

Diluted earnings per share for the full year of $2.46 was an increase of $0.28, or 12.84% over 2018.

 

o

Return on average assets for 2019 increased 0.19% to 1.75% and return on average equity for the year increased 0.90% to 11.54%.

 

o

The Company received $2.40 million from litigation settlements during the fourth quarter. Year to date, the Company has received $7.00 million.

 

o

The Company incurred $940 thousand in merger expenses related to the Highlands Bankshares, Inc. acquisition in the fourth quarter.

 

Balance Sheet

 

o

Book value per common share increased $2.54 to $23.33, and tangible book value per common share increased $1.13 to a record $15.82, compared to December 31, 2018.

 

o

The Company’s capital management plan and philosophy require maintenance of a strong capital base from which to grow and serve customers. As reported in early 2018, due to a strong capital position, the Company’s current capital management plan aspires to return current earnings not needed to fund growth in core operations or other capital needs back to shareholders through regular cash dividends, stock repurchases, and special cash dividends when warranted. The Company earned approximately $38.80 million in 2019, from which it paid regular cash dividends of approximately $15.06 million. The Company also repurchased 487,400 common shares for approximately $16.36 million. Because the Company successfully leveraged capital with the Highlands acquisition, in addition to regular dividends and stock repurchases returning most current earnings to shareholders, the Board of Directors determined not to declare a special dividend related to 2019 earnings. As of December 31, 2019, the Company continues to significantly exceed regulatory “well capitalized” targets, as well as all capital targets of its capital management plan.

 

Non-GAAP Financial Measures

 

In addition to financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures that provide useful information for financial and operational decision making, evaluating trends, and comparing financial results to other financial institutions. The non-GAAP financial measures presented in this news release include “tangible book value per common share,” “return on average tangible common equity,” “adjusted earnings,” “adjusted diluted earnings per share,” “adjusted return on average assets,” “adjusted return on average common equity,” “adjusted return on average tangible common equity,” and certain financial measures presented on a fully taxable equivalent (“FTE”) basis. FTE basis is calculated using the federal statutory income tax rate of 21%.  While the Company believes certain non-GAAP financial measures enhance the understanding of its business and performance, they are supplemental and not a substitute for, or more important than, financial measures prepared in accordance with GAAP and may not be comparable to those reported by other financial institutions.

 

1

 

 

About First Community Bankshares, Inc.

 

First Community Bankshares, Inc., a financial holding company headquartered in Bluefield, Virginia, provides banking products and services through its wholly owned subsidiary First Community Bank. First Community Bank operated 58 branch banking locations in Virginia, West Virginia, North Carolina, and Tennessee as of December 31, 2019. First Community Bank offers wealth management and investment advice through its Trust Division and First Community Wealth Management, which collectively managed and administered $1.12 billion in combined assets as of December 31, 2019. The Company reported consolidated assets of $2.80 billion as of December 31, 2019. The Company’s common stock is listed on the NASDAQ Global Select Market under the trading symbol, “FCBC”. Additional investor information is available on the Company’s website at www.firstcommunitybank.com.

 

This news release may include forward-looking statements. These forward-looking statements are based on current expectations that involve risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may differ materially. These risks include: changes in business or other market conditions; the timely development, production and acceptance of new products and services; the challenge of managing asset/liability levels; the management of credit risk and interest rate risk; the difficulty of keeping expense growth at modest levels while increasing revenues; and other risks detailed from time to time in the Company’s Securities and Exchange Commission reports including, but not limited to, the Annual Report on Form 10-K for the most recent fiscal year end. Pursuant to the Private Securities Litigation Reform Act of 1995, the Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

 

2

 

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

 

   

Three Months Ended

   

Twelve Months Ended

 
(Amounts in thousands, except share  

December 31,

   

September 30,

   

June 30,

   

March 31,

   

December 31,

   

December 31,

 

and per share data)

 

2019

   

2019

   

2019

   

2019

   

2018

   

2019

   

2018

 

Interest income

                                                       

Interest and fees on loans

  $ 21,837     $ 22,068     $ 22,721     $ 22,179     $ 23,938     $ 88,805     $ 91,671  

Interest on securities

    870       857       895       1,094       1,249       3,716       5,086  

Interest on deposits in banks

    663       680       766       338       194       2,447       1,537  

Total interest income

    23,370       23,605       24,382       23,611       25,381       94,968       98,294  

Interest expense

                                                       

Interest on deposits

    1,312       1,383       1,392       1,305       1,297       5,392       5,144  

Interest on borrowings

    1       1       1       120       205       123       2,305  

Total interest expense

    1,313       1,384       1,393       1,425       1,502       5,515       7,449  

Net interest income

    22,057       22,221       22,989       22,186       23,879       89,453       90,845  

Provision for loan losses

    91       675       1,585       1,220       908       3,571       2,393  

Net interest income after provision

    21,966       21,546       21,404       20,966       22,971       85,882       88,452  

Noninterest income

    9,314       7,634       8,649       8,080       6,297       33,677       26,443  

Noninterest expense

    18,883       17,444       16,651       16,785       17,366       69,763       69,773  

Income before income taxes

    12,397       11,736       13,402       12,261       11,902       49,796       45,122  

Income tax expense

    2,833       2,580       2,951       2,630       2,596       10,994       8,782  

Net income

  $ 9,564     $ 9,156     $ 10,451     $ 9,631     $ 9,306     $ 38,802     $ 36,340  
                                                         

Earnings per common share

                                                       

Basic

  $ 0.61     $ 0.59     $ 0.67     $ 0.61     $ 0.57     $ 2.47     $ 2.19  

Diluted

    0.61       0.58       0.66       0.60       0.57       2.46       2.18  

Cash dividends per common share

                                                       

Regular

    0.25       0.25       0.25       0.21       0.21       0.96       1.26  

Weighted average shares outstanding

                                                       

Basic

    15,611,093       15,603,992       15,712,204       15,839,424       16,201,148       15,690,812       16,587,504  

Diluted

    15,670,047       15,664,587       15,775,320       15,920,950       16,280,404       15,756,093       16,666,385  

Performance ratios

                                                       

Return on average assets

    1.71 %     1.65 %     1.89 %     1.75 %     1.63 %     1.75 %     1.56 %

Return on average common equity

    11.08 %     10.80 %     12.57 %     11.77 %     11.01 %     11.54 %     10.64 %

Return on average tangible common equity(1)

    15.33 %     15.19 %     17.57 %     16.66 %     15.58 %     16.09 %     15.09 %
                                                         
(1)

A non-GAAP financial measure defined as net income divided by average stockholders' equity less average goodwill and other intangible assets

 

 

RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EARNINGS (Unaudited)

 

   

Three Months Ended

   

Twelve Months Ended

 
   

December 31,

   

September 30,

   

June 30,

   

March 31,

   

December 31,

   

December 31,

 
(Amounts in thousands, except per  

2019

   

2019

   

2019

   

2019

   

2018

   

2019

   

2018

 

share data)

                                                       

Net income

  $ 9,564     $ 9,156     $ 10,451     $ 9,631     $ 9,306     $ 38,802     $ 36,340  

Non-GAAP adjustments:

                                                       

Net loss on sale of securities

    -       -       43       -       -       43       618  

Loss on extinguishment of debt

    -       -       -       -       -       -       1,096  

Goodwill impairment

    -       -       -       -       -       -       1,492  

Deferred tax asset revaluation

    -       -       -       -       -       -       (1,669 )

Merger, acquisition, and divestiture expense

    940       592       -       -       -       1,532       -  

Other items(1)

    (2,395 )     (900 )     (2,025 )     (1,675 )     254       (6,995 )     421  

Total adjustments

    (1,455 )     (308 )     (1,982 )     (1,675 )     254       (5,420 )     1,958  

Tax effect

    (331 )     (134 )     (550 )     (328 )     61       (1,343 )     544  

Adjusted earnings, non-GAAP

  $ 8,440     $ 8,982     $ 9,019     $ 8,284     $ 9,499     $ 34,725     $ 37,754  
                                                         

Adjusted diluted earnings per common share, non-GAAP

  $ 0.54     $ 0.57     $ 0.57     $ 0.52     $ 0.58     $ 2.20     $ 2.27  

Performance ratios, non-GAAP

                                                       

Adjusted return on average assets

    1.51 %     1.62 %     1.63 %     1.51 %     1.67 %     1.57 %     1.62 %

Adjusted return on average common equity

    9.78 %     10.59 %     10.84 %     10.12 %     11.23 %     10.33 %     11.05 %

Adjusted return on average tangible common equity(2)

    13.53 %     14.90 %     15.16 %     14.33 %     15.90 %     14.40 %     15.68 %
                                                         

(1)

Includes other non-recurring income and expense items

(2)

A non-GAAP financial measure defined as adjusted earnings divided by average stockholders' equity less average goodwill and other intangible assets

 

3

 

 

AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited)

 

   

Three Months Ended December 31,

 
   

2019

   

2018

 
   

Average

           

Average Yield/

   

Average

           

Average Yield/

 

(Amounts in thousands)

 

Balance

   

Interest(1)

   

Rate(1)

   

Balance

   

Interest(1)

   

Rate(1)

 

Assets

                                               

Earning assets

                                               

Loans(2)(3)

  $ 1,697,133     $ 21,876       5.11 %   $ 1,788,570     $ 23,976       5.32 %

Securities available for sale

    116,950       1,020       3.46 %     162,330       1,329       3.26 %

Securities held to maturity

    -       -       -       25,030       104       1.65 %

Interest-bearing deposits

    159,904       663       1.64 %     33,736       194       2.28 %

Total earning assets

    1,973,987       23,559       4.73 %     2,009,666       25,603       5.05 %

Other assets

    249,300                       249,056                  

Total assets

  $ 2,223,287                     $ 2,258,722                  
                                                 

Liabilities and stockholders' equity

                                               

Interest-bearing deposits

                                               

Demand deposits

  $ 462,834     $ 88       0.08 %   $ 458,458     $ 40       0.03 %

Savings deposits

    507,645       234       0.18 %     494,868       132       0.10 %

Time deposits

    393,424       989       1.00 %     450,770       1,125       0.99 %

Total interest-bearing deposits

    1,363,903       1,311       0.38 %     1,404,096       1,297       0.37 %

Borrowings

                                               

Retail repurchase agreements

    1,515       -       -       4,526       2       0.19 %

Wholesale repurchase agreements

    -       -       -       25,000       203       3.22 %

Total borrowings

    1,515       -       -       29,526       205       2.75 %

Total interest-bearing liabilities

    1,365,418       1,311       0.38 %     1,433,622       1,502       0.42 %

Noninterest-bearing demand deposits

    482,391                       461,457                  

Other liabilities

    32,958                       28,188                  

Total liabilities

    1,880,767                       1,923,267                  

Stockholders' equity

    342,520                       335,455                  

Total liabilities and stockholders' equity

  $ 2,223,287                     $ 2,258,722                  

Net interest income, FTE(1)

          $ 22,248                     $ 24,101          

Net interest rate spread

                    4.36 %                     4.63 %

Net interest margin, FTE(1)

                    4.47 %                     4.76 %
                                                 

(1)

Interest income and average yield/rate are presented on a FTE, non-GAAP, basis using the federal statutory income tax rate of 21%.

(2)

Nonaccrual loans are included in the average balance; however, no related interest income is recorded during the period of nonaccrual.

(3)

Interest on loans includes non-cash and accelerated purchase accounting accretion of $511 thousand and $2.13 million for the three months ended December 31, 2019 and 2018, respectively.

 

4

 

 

AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited)

 

   

Twelve Months Ended December 31,

 
   

2019

   

2018

 
   

Average

           

Average Yield/

   

Average

           

Average Yield/

 

(Amounts in thousands)

 

Balance

   

Interest(1)

   

Rate(1)

   

Balance

   

Interest(1)

   

Rate(1)

 

Assets

                                               

Earning assets

                                               

Loans(2)(3)

  $ 1,722,419     $ 88,990       5.17 %   $ 1,795,391     $ 91,819       5.11 %

Securities available for sale

    126,732       4,334       3.42 %     176,766       5,419       3.07 %

Securities held to maturity

    3,045       45       1.48 %     25,081       418       1.67 %

Interest-bearing deposits

    116,119       2,447       2.10 %     81,520       1,537       1.89 %

Total earning assets

    1,968,315       95,816       4.87 %     2,078,758       99,193       4.77 %

Other assets

    248,926                       251,853                  

Total assets

  $ 2,217,241                     $ 2,330,611                  
                                                 

Liabilities and stockholders' equity

                                               

Interest-bearing deposits

                                               

Demand deposits

  $ 453,724     $ 281       0.06 %   $ 466,403     $ 246       0.05 %

Savings deposits

    503,603       823       0.16 %     508,353       382       0.08 %

Time deposits

    418,450       4,288       1.02 %     471,335       4,516       0.96 %

Total interest-bearing deposits

    1,375,777       5,392       0.39 %     1,446,091       5,144       0.36 %

Borrowings

                                               

Retail repurchase agreements

    2,471       3       0.14 %     4,010       5       0.12 %

Wholesale repurchase agreements

    3,767       119       3.17 %     25,000       806       3.22 %

FHLB advances and other borrowings

    -       -       -       36,849       1,494       4.05 %

Total borrowings

    6,238       122       1.96 %     65,859       2,305       3.50 %

Total interest-bearing liabilities

    1,382,015       5,514       0.40 %     1,511,950       7,449       0.49 %

Noninterest-bearing demand deposits

    469,352                       448,903                  

Other liabilities

    29,736                       28,239                  

Total liabilities

    1,881,103                       1,989,092                  

Stockholders' equity

    336,138                       341,519                  

Total liabilities and stockholders' equity

  $ 2,217,241                     $ 2,330,611                  

Net interest income, FTE(1)

          $ 90,302                     $ 91,744          

Net interest rate spread

                    4.47 %                     4.28 %

Net interest margin, FTE(1)

                    4.59 %                     4.41 %
                                                 

(1)

Interest income and average yield/rate are presented on a FTE, non-GAAP, basis using the federal statutory income tax rate of 21%.

(2)

Nonaccrual loans are included in the average balance; however, no related interest income is recorded during the period of nonaccrual.

(3)

Interest on loans includes non-cash and accelerated purchase accounting accretion of $3.23 million and $6.39 million for the years ended December 31, 2019 and 2018, respectively.

 

5

 

 

CONDENSED CONSOLIDATED QUARTERLY NONINTEREST INCOME AND EXPENSE  (Unaudited)

 

   

Three Months Ended

   

Twelve Months Ended

 
   

December 31,

   

September 30,

   

June 30,

   

March 31,

   

December 31,

   

December 31,

 

(Amounts in thousands)

 

2019

   

2019

   

2019

   

2019

   

2018

   

2019

   

2018

 

Noninterest income

                                                       

Wealth management

  $ 842     $ 952     $ 884     $ 745     $ 854     $ 3,423     $ 3,262  

Service charges on deposits

    3,702       3,785       3,699       3,408       3,850       14,594       14,733  

Other service charges and fees

    2,096       2,007       2,129       2,049       2,017       8,281       7,733  

Insurance commissions

    -       -       -       -       -       -       966  

Net loss on sale of securities

    -       -       (43 )     -       -       (43 )     (618 )

Net FDIC indemnification asset amortization

    (590 )     (719 )     (516 )     (552 )     (579 )     (2,377 )     (2,181 )

Other income

    2,395       900       2,025       1,675       -       6,995       -  

Other operating income

    869       709       471       755       155       2,804       2,548  

Total noninterest income

  $ 9,314     $ 7,634     $ 8,649     $ 8,080     $ 6,297     $ 33,677     $ 26,443  

Noninterest expense

                                                       

Salaries and employee benefits

  $ 9,495     $ 9,334     $ 9,153     $ 9,166     $ 9,273     $ 37,148     $ 36,690  

Occupancy expense

    1,057       1,042       1,082       1,153       1,134       4,334       4,542  

Furniture and equipment expense

    1,179       1,183       1,062       1,033       1,004       4,457       3,980  

Service fees

    721       1,053       1,231       1,030       1,047       4,448       3,860  

Advertising and public relations

    478       795       513       524       550       2,310       2,011  

Professional fees

    408       375       328       414       356       1,698       1,430  

Amortization of intangibles

    251       251       249       246       254       997       1,039  

FDIC premiums and assessments

    -       -       150       168       209       318       906  

Loss on extinguishment of debt

    -       -       -       -       -       -       1,096  

Merger, acquisition, and divestiture expense

    1,532       592       -       -       -       2,124       -  

Goodwill impairment

    -       -       -       -       -       -       1,492  

Other operating expense

    3,762       2,819       2,883       3,051       3,539       11,929       12,727  

Total noninterest expense

  $ 18,883     $ 17,444     $ 16,651     $ 16,785     $ 17,366     $ 69,763     $ 69,773  

 

6

 

 

CONDENSED CONSOLIDATED QUARTERLY BALANCE SHEETS (Unaudited)

 

   

December 31,

   

September 30,

   

June 30,

   

March 31,

   

December 31,

 

(Amounts in thousands, except per share data)

 

2019

   

2019

   

2019

   

2019

   

2018

 

Assets

                                       

Cash and cash equivalents

  $ 217,009     $ 182,458     $ 156,478     $ 148,546     $ 76,873  

Debt securities available for sale

    169,574       115,537       119,076       132,597       153,116  

Debt securities held to maturity

    -       -       -       -       25,013  

Loans held for sale

    263       -       -       -       -  

Loans held for investment, net of unearned income

                                       

Noncovered

    2,101,599       1,679,958       1,705,408       1,719,905       1,756,269  

Covered

    12,861       14,158       15,520       17,475       18,815  

Allowance for loan losses

    (18,425 )     (18,493 )     (18,540 )     (18,243 )     (18,267 )

Loans held for investment, net

    2,096,035       1,675,623       1,702,388       1,719,137       1,756,817  

FDIC indemnification asset

    2,883       3,458       4,020       4,578       5,108  

Premises and equipment, net

    62,824       48,521       48,262       46,636       45,785  

Other real estate owned, noncovered

    3,969       2,528       3,810       3,903       3,806  

Other real estate owned, covered

    -       -       152       152       32  

Interest receivable

    5,094       4,842       5,317       5,227       5,481  

Goodwill

    129,565       92,744       92,744       92,744       92,744  

Other intangible assets

    8,519       4,280       4,532       4,780       5,026  

Other assets

    103,112       75,056       75,248       84,035       74,573  

Total assets

  $ 2,798,847     $ 2,205,047     $ 2,212,027     $ 2,242,335     $ 2,244,374  
                                         

Liabilities

                                       

Deposits

                                       

Noninterest-bearing

  $ 838,974     $ 472,478     $ 480,573     $ 479,299     $ 459,550  

Interest-bearing

    1,490,938       1,364,374       1,367,465       1,399,138       1,396,200  

Total deposits

    2,329,912       1,836,852       1,848,038       1,878,437       1,855,750  

Securities sold under agreements to repurchase

    1,601       1,863       3,083       3,700       29,370  

FHLB borrowings

    40       -       -       -       -  

Interest, taxes, and other liabilities

    38,475       28,969       27,220       27,096       26,397  

Total liabilities

    2,370,028       1,867,684       1,878,341       1,909,233       1,911,517  
                                         

Stockholders' equity

                                       

Common stock

    18,377       15,580       15,633       15,818       16,007  

Additional paid-in capital

    192,413       108,222       109,816       115,914       122,486  

Retained earnings

    219,535       213,866       208,618       202,103       195,793  

Accumulated other comprehensive loss

    (1,506 )     (305 )     (381 )     (733 )     (1,429 )

Total stockholders' equity

    428,819       337,363       333,686       333,102       332,857  

Total liabilities and stockholders' equity

  $ 2,798,847     $ 2,205,047     $ 2,212,027     $ 2,242,335     $ 2,244,374  
                                         

Shares outstanding at period-end

    18,376,991       15,579,740       15,633,388       15,818,368       16,007,263  

Book value per common share

  $ 23.33     $ 21.65     $ 21.34     $ 21.06     $ 20.79  

Tangible book value per common share(1)

    15.82       15.43       15.12       14.89       14.69  
                                         

(1)

A non-GAAP financial measure defined as stockholders' equity less goodwill and other intangible assets, divided by shares outstanding

 

7

 

 

SELECTED CREDIT QUALITY INFORMATION (Unaudited)

 

   

December 31,

   

September 30,

   

June 30,

   

March 31,

   

December 31,

 

(Amounts in thousands)

 

2019

   

2019

   

2019

   

2019

   

2018

 

Allowance for Loan Losses

                                       

Beginning balance

  $ 18,493     $ 18,540     $ 18,243     $ 18,267     $ 18,256  

Provision for loan losses charged to operations

    91       675       1,585       1,220       908  

Charge-offs

    (1,353 )     (964 )     (2,114 )     (1,622 )     (1,282 )

Recoveries

    1,194       242       826       378       385  

Net charge-offs

    (159 )     (722 )     (1,288 )     (1,244 )     (897 )

Ending balance

  $ 18,425     $ 18,493     $ 18,540     $ 18,243     $ 18,267  
                                         

Nonperforming Assets

                                       

Non-covered nonperforming assets

                                       

Nonaccrual loans

  $ 16,113     $ 16,701     $ 16,368     $ 18,544     $ 19,583  

Accruing loans past due 90 days or more

    144       107       37       156       58  

Troubled debt restructurings ("TDRs")(1)

    720       668       821       835       161  

Total non-covered nonperforming loans

    16,977       17,476       17,226       19,535       19,802  

OREO

    3,969       2,528       3,810       3,903       3,806  

Total non-covered nonperforming assets

  $ 20,946     $ 20,004     $ 21,036     $ 23,438     $ 23,608  
                                         

Covered nonperforming assets

                                       

Nonaccrual loans

  $ 244     $ 243     $ 203     $ 237     $ 322  

Total covered nonperforming loans

    244       243       203       237       322  

OREO

    -       -       152       152       32  

Total covered nonperforming assets

  $ 244     $ 243     $ 355     $ 389     $ 354  
                                         

Additional Information

                                       

Performing TDRs(2)

  $ 5,855     $ 5,635     $ 5,676     $ 5,654     $ 6,266  

Total Accruing TDRs(3)

    6,575       6,303       6,497       6,489       6,427  
                                         

Non-covered ratios

                                       

Nonperforming loans to total loans

    0.81 %     1.04 %     1.01 %     1.14 %     1.13 %

Nonperforming assets to total assets

    0.75 %     0.91 %     0.96 %     1.05 %     1.06 %

Non-PCI allowance to nonperforming loans

    108.53 %     105.82 %     107.63 %     93.39 %     92.25 %

Non-PCI allowance to total loans

    0.88 %     1.10 %     1.09 %     1.06 %     1.04 %

Annualized net charge-offs to average loans

    0.04 %     0.17 %     0.30 %     0.29 %     0.20 %
                                         

Total ratios

                                       

Nonperforming loans to total loans

    0.81 %     1.05 %     1.01 %     1.14 %     1.13 %

Nonperforming assets to total assets

    0.76 %     0.92 %     0.97 %     1.06 %     1.07 %

Allowance for loan losses to nonperforming loans

    106.99 %     104.37 %     106.37 %     92.27 %     90.77 %

Allowance for loan losses to total loans

    0.87 %     1.09 %     1.08 %     1.05 %     1.03 %

Annualized net charge-offs to average loans

    0.04 %     0.17 %     0.30 %     0.29 %     0.20 %
                                         

(1)

Accruing TDRs restructured within the past six months or nonperforming

(2)

Accruing TDRs with six months or more of satisfactory payment performance

(3)

Accruing total TDRs 

 

8

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