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Section 1: 10-Q (10-Q)

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549
 
 
 
FORM 10-Q
 
 


QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2019 or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from __________ to __________
Commission File Number 000-29480 

 
HERITAGE FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter) 
 
 
Washington
 
91-1857900
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)
 
 
 
 
201 Fifth Avenue SW,
Olympia
WA
 
98501
(Address of principal executive offices)
 
(Zip Code)
(360) 943-1500
(Registrant’s telephone number, including area code) 
 
 
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading symbol
Name of each exchange on which registered
Common stock, no par value
HFWA
NASDAQ

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      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      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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  
 
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  
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the last practicable date:
As of July 31, 2019 there were 36,882,163 shares of the registrant's common stock, no par value per share, outstanding.






HERITAGE FINANCIAL CORPORATION
FORM 10-Q
June 30, 2019
TABLE OF CONTENTS

 
 
 
 
Page
 
 
 
 
 
 
PART I.
ITEM 1.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOTE 1.
 
 
NOTE 2.
 
 
NOTE 3.
 
 
NOTE 4.
 
 
NOTE 5.
 
 
NOTE 6.
 
 
NOTE 7.
 
 
NOTE 8.
 
 
NOTE 9.
 
 
NOTE 10.
 
 
NOTE 11.
 
 
NOTE 12.
 
 
NOTE 13.
 
 
NOTE 14.
 
 
NOTE 15.
 
 
NOTE 16.
ITEM 2.
ITEM 3.
ITEM 4.
Part II.
ITEM 1.
ITEM 1A.
ITEM 2.
ITEM 3.
ITEM 4.
ITEM 5.
ITEM 6.
 

2




Glossary of Acronyms, Abbreviations, and Terms

The acronyms, abbreviations, and terms listed below are used in various sections of the Form 10-Q, including “Item 1. Financial Statements” and “Item 2. Management Discussion and Analysis of Financial Condition and Results of Operations".
2018 Annual Form 10-K
 
Company's Annual Report on Form 10-K for the year ended December 31, 2018
ALL
 
Allowance for Loan Losses
AOCI
 
Accumulated Other Comprehensive Income (Loss)
ASC
 
Accounting Standards Codification
ASU
 
Accounting Standards Update
Bank
 
Heritage Bank
Basel III
 
A comprehensive capital framework and rules for U.S. banking organizations approved by the Federal Reserve Board and the FDIC in 2013
BOLI
 
Bank owned life insurance
CDI
 
Core Deposit Intangible
CECL
 
Current Expected Credit Loss Model
Company
 
Heritage Financial Corporation
GAAP
 
U.S. Generally Accepted Accounting Principles
Heritage
 
Heritage Financial Corporation
FASB
 
Financial Accounting Standards Board
FDIC
 
Federal Deposit Insurance Corporation
FHLB
 
Federal Home Loan Bank of Des Moines
LIBOR
 
London Interbank Offering Rate
OAEM
 
Other Assets Especially Mentioned
PCI
 
Purchased Credit Impaired; loans purchased with evidence of credit deterioration since origination for which it is probable that not all contractually required payments will be collected; accounted for under FASB ASC 310-30
Premier Merger
 
Merger with Premier Commercial Bancorp & Premier Community Bank completed July 2, 2018
Puget Sound Merger
 
Merger with Puget Sound Bancorp, Inc. & Puget Sound Bank completed January 16, 2018
Premier and Puget Mergers
 
Premier Merger and Puget Sound Mergers, collectively
ROU
 
Right-of-Use
SBA
 
Small Business Administration
SEC
 
Securities and Exchange Commission
TDR
 
Troubled Debt Restructured

FORWARD LOOKING STATEMENTS:
This Quarterly Report on Form 10-Q may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements often include the words “believes,” “expects,” “anticipates,” “estimates,” “forecasts,” “intends,” “plans,” “targets,” “potentially,” “probably,” “projects,” “outlook” or similar expressions or future or conditional verbs such as “may,” “will,” “should,” “would” and “could.” These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated, including but not limited to: customer and employee retention, which might be greater than expected; the credit risks of lending activities, including changes in the level and trend of loan delinquencies and write-offs and changes in our allowance for loan losses and provision for loan losses that may be effected by deterioration in the housing and commercial real estate markets, which may lead to increased losses and nonperforming assets in our loan portfolio, and may result in our allowance for loan losses no longer being adequate to cover actual losses, and require us to increase our allowance for loan losses; changes in general economic conditions, either nationally or in our market areas; changes in the levels of general interest rates, and the relative differences between short and long term interest rates, deposit interest rates, our net interest margin and funding sources; risks related to acquiring assets in or entering markets in which we have not previously operated and may not be familiar;

3




fluctuations in the demand for loans, the number of unsold homes and other properties and fluctuations in real estate values in our market areas; results of examinations of us by the bank regulators, including the possibility that any such regulatory authority may, among other things, initiate an enforcement action against the Company or our bank subsidiary which could require us to increase our allowance for loan losses, write-down assets, change our regulatory capital position, affect our ability to borrow funds or maintain or increase deposits, or impose additional requirements on us, any of which could affect our ability to continue our growth through mergers, acquisitions or similar transactions and adversely affect our liquidity and earnings; legislative or regulatory changes that adversely affect our business including but not limited to, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and implementing regulations, changes in regulatory policies and principles, or the interpretation of regulatory capital or other rules as a result of Basel III; our ability to control operating costs and expenses; increases in premiums for deposit insurance; the use of estimates in determining fair value of certain of our assets, which estimates may prove to be incorrect and result in significant declines in valuation; difficulties in reducing risk associated with the loans on our Condensed Consolidated Statements of Financial Condition; staffing fluctuations in response to product demand or the implementation of corporate strategies that affect our workforce and potential associated charges; disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems or on the third-party vendors who perform several of our critical processing functions; our ability to retain key members of our senior management team; costs and effects of litigation, including settlements and judgments; our ability to implement our growth strategies; our ability to successfully integrate any assets, liabilities, customers, systems, and management personnel we may acquire into our operations and our ability to realize related revenue synergies and cost savings within expected time frames or at all, and any goodwill charges related thereto and costs or difficulties relating to integration matters, including but not limited to customer and employee retention, which might be greater than expected; increased competitive pressures among financial service companies; changes in consumer spending, borrowing and savings habits; the availability of resources to address changes in laws, rules, or regulations or to respond to regulatory actions; adverse changes in the securities markets; inability of key third-party providers to perform their obligations to us; changes in accounting policies and practices, as may be adopted by the financial institution regulatory agencies or the FASB, including additional guidance and interpretation on accounting issues and details of the implementation of new accounting methods; and other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services and other risks detailed from time to time in our filings with the Securities and Exchange Commission including our 2018 Annual Form 10-K.
The Company cautions readers not to place undue reliance on any forward-looking statements. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to the Company. The Company does not undertake and specifically disclaims any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause our actual results for future periods to differ materially from those expressed in any forward-looking statements by, or on behalf of, us, and could negatively affect the Company’s operating results and stock price performance.
As used throughout this report, the terms “we”, “our”, “us”, or the “Company” refer to Heritage Financial Corporation and its consolidated subsidiaries, unless the context otherwise requires.

4




PART I.     FINANCIAL INFORMATION

ITEM 1.     FINANCIAL STATEMENTS

HERITAGE FINANCIAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited)
(In thousands, except shares)
 
 
June 30, 2019
 
December 31, 2018
ASSETS
 
 
 
 
Cash on hand and in banks
 
$
95,878


$
92,704

Interest earning deposits
 
43,412


69,206

Cash and cash equivalents
 
139,290


161,910

Investment securities available for sale, at fair value
 
960,680


976,095

Loans held for sale
 
3,692

 
1,555

Loans receivable, net
 
3,718,283

 
3,654,160

Allowance for loan losses
 
(36,363
)
 
(35,042
)
Total loans receivable, net
 
3,681,920

 
3,619,118

Other real estate owned
 
1,224


1,983

Premises and equipment, net
 
84,296


81,100

Federal Home Loan Bank stock, at cost
 
10,005


6,076

Bank owned life insurance
 
94,417

 
93,612

Accrued interest receivable
 
15,401


15,403

Prepaid expenses and other assets
 
126,259


98,522

Other intangible assets, net
 
18,563


20,614

Goodwill
 
240,939


240,939

Total assets
 
$
5,376,686


$
5,316,927

LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
 
Deposits
 
$
4,347,708

 
$
4,432,402

Federal Home Loan Bank advances
 
90,700

 

Junior subordinated debentures
 
20,448

 
20,302

Securities sold under agreement to repurchase
 
23,141

 
31,487

Accrued expenses and other liabilities
 
98,064

 
72,013

Total liabilities
 
4,580,061

 
4,556,204

Stockholders’ equity:
 
 
 
 
Preferred stock, no par value, 2,500,000 shares authorized; no shares issued and outstanding at June 30, 2019 and December 31, 2018
 

 

Common stock, no par value, 50,000,000 shares authorized; 36,882,771 and 36,874,055 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively
 
591,703

 
591,806

Retained earnings
 
195,168

 
176,372

Accumulated other comprehensive income (loss), net
 
9,754

 
(7,455
)
Total stockholders’ equity
 
796,625

 
760,723

Total liabilities and stockholders’ equity
 
$
5,376,686

 
$
5,316,927

See accompanying Notes to Condensed Consolidated Financial Statements.

5




HERITAGE FINANCIAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(In thousands, except per share amounts)
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2019
 
2018
 
2019
 
2018
INTEREST INCOME
 
 
 
 
 
 
 
 
Interest and fees on loans
 
$
48,107

 
$
41,141

 
$
94,806

 
$
79,300

Taxable interest on investment securities
 
5,933

 
4,068

 
11,756

 
7,597

Nontaxable interest on investment securities
 
893

 
1,220

 
1,843

 
2,561

Interest on other interest earning assets
 
283

 
240

 
618

 
458

Total interest income
 
55,216

 
46,669

 
109,023

 
89,916

INTEREST EXPENSE
 
 
 
 
 
 
 
 
Deposits
 
4,017

 
2,195

 
7,620

 
4,155

Junior subordinated debentures
 
340

 
315

 
694

 
598

Other borrowings
 
323

 
418

 
385

 
585

Total interest expense
 
4,680

 
2,928

 
8,699

 
5,338

Net interest income
 
50,536

 
43,741

 
100,324

 
84,578

Provision for loan losses
 
1,367

 
1,750

 
2,287

 
2,902

Net interest income after provision for loan losses
 
49,169

 
41,991

 
98,037

 
81,676

NONINTEREST INCOME
 
 
 
 
 
 
 
 
Service charges and other fees
 
4,845

 
4,695

 
9,330

 
9,238

Gain on sale of investment securities, net
 
33

 
18

 
48

 
53

Gain on sale of loans, net
 
368

 
706

 
620

 
1,580

Interest rate swap fees
 
161

 
309

 
161

 
360

Other income
 
2,157

 
1,847

 
4,834

 
3,892

Total noninterest income
 
7,564

 
7,575

 
14,993

 
15,123

NONINTEREST EXPENSE
 
 
 
 
 
 
 
 
Compensation and employee benefits
 
21,982

 
19,321

 
43,896

 
40,688

Occupancy and equipment
 
5,451

 
4,810

 
10,909

 
9,437

Data processing
 
2,109

 
2,507

 
4,282

 
5,112

Marketing
 
1,106

 
823

 
2,204

 
1,631

Professional services
 
1,305

 
3,529

 
2,478

 
6,366

State/municipal business and use taxes
 
809

 
716

 
1,607

 
1,404

Federal deposit insurance premium
 
426

 
375

 
711

 
730

Other real estate owned, net
 
289

 

 
375

 

Amortization of intangible assets
 
1,026

 
796

 
2,051

 
1,591

Other expense
 
3,044

 
2,829

 
5,559

 
5,494

Total noninterest expense
 
37,547

 
35,706

 
74,072

 
72,453

Income before income taxes
 
19,186

 
13,860

 
38,958

 
24,346

Income tax expense
 
3,202

 
2,003

 
6,422

 
3,402

Net income
 
$
15,984

 
$
11,857

 
$
32,536

 
$
20,944

Basic earnings per common share
 
$
0.43

 
$
0.35

 
$
0.88

 
$
0.62

Diluted earnings per common share
 
$
0.43

 
$
0.35

 
$
0.88

 
$
0.62

Dividends declared per common share
 
$
0.18

 
$
0.15

 
$
0.36

 
$
0.30

See accompanying Notes to Condensed Consolidated Financial Statements.

6




HERITAGE FINANCIAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
(In thousands)

 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2019
 
2018
 
2019
 
2018
Net income
 
$
15,984

 
$
11,857

 
$
32,536

 
$
20,944

Change in fair value of investment securities available for sale, net of tax of $2,463, $(630), $4,608, and $(2,638), respectively
 
9,219

 
(2,358
)
 
17,247

 
(9,874
)
Reclassification adjustment for net gain from sale of investment securities available for sale included in income, net of tax of $(7), $(4), $(10), and $(12), respectively
 
(26
)
 
(14
)
 
(38
)
 
(41
)
Other comprehensive income (loss)
 
9,193

 
(2,372
)
 
17,209

 
(9,915
)
Comprehensive income
 
$
25,177

 
$
9,485

 
$
49,745

 
$
11,029

See accompanying Notes to Condensed Consolidated Financial Statements.


7




HERITAGE FINANCIAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited)
(In thousands, except per share amounts)
 
Three Months Ended June 30, 2019
 
Number of
common
shares
 
Common
stock
 
Retained
earnings
 
Accumulated
other
comprehensive income, net
 
Total
stockholders’
equity
Balance at March 31, 2019
36,899

 
$
591,767

 
$
185,863

 
$
561

 
$
778,191

Restricted stock units vested, net of forfeitures of restricted stock awards
13

 

 

 

 

Exercise of stock options
1

 
20

 

 

 
20

Stock-based compensation expense

 
795

 

 

 
795

Common stock repurchased
(30
)
 
(879
)
 

 

 
(879
)
Net income

 

 
15,984

 

 
15,984

Other comprehensive income, net of tax

 

 

 
9,193

 
9,193

Cash dividends declared on common stock ($0.18 per share)

 

 
(6,679
)
 

 
(6,679
)
Balance at June 30, 2019
36,883

 
$
591,703

 
$
195,168

 
$
9,754

 
$
796,625


 
Six Months Ended June 30, 2019
 
Number of
common
shares
 
Common
stock
 
Retained
earnings
 
Accumulated
other
comprehensive (loss) income, net
 
Total
stockholders’
equity
Balance at December 31, 2018
36,874

 
$
591,806

 
$
176,372

 
$
(7,455
)
 
$
760,723

Restricted stock units vested, net of forfeitures of restricted stock awards
62

 

 

 

 

Exercise of stock options
3

 
42

 

 

 
42

Stock-based compensation expense

 
1,536

 

 

 
1,536

Common stock repurchased
(56
)
 
(1,681
)
 

 

 
(1,681
)
Net income

 

 
32,536

 

 
32,536

Other comprehensive income, net of tax

 

 

 
17,209

 
17,209

Cash dividends declared on common stock ($0.36 per share)

 

 
(13,341
)
 

 
(13,341
)
Effects of implementation of accounting change related to operating leases

 

 
(399
)
 

 
(399
)
Balance at June 30, 2019
36,883

 
$
591,703

 
$
195,168

 
$
9,754

 
$
796,625



8




 
Three Months Ended June 30, 2018
 
Number of
common
shares
 
Common
stock
 
Retained
earnings
 
Accumulated
other
comprehensive loss, net
 
Total
stockholders’
equity
Balance at March 31, 2018
34,018

 
$
490,566

 
$
153,076

 
$
(8,934
)
 
$
634,708

Restricted stock units vested, net of forfeitures of restricted stock awards
8

 

 

 

 

Exercise of stock options
2

 
26

 

 

 
26

Stock-based compensation expense

 
684

 

 

 
684

Common stock repurchased
(7
)
 
(250
)
 

 

 
(250
)
Net income

 

 
11,857

 

 
11,857

Other comprehensive loss, net of tax

 

 

 
(2,372
)
 
(2,372
)
Cash dividends declared on common stock ($0.15 per share)

 

 
(5,130
)
 

 
(5,130
)
Balance at June 30, 2018
34,021

 
$
491,026

 
$
159,803

 
$
(11,306
)
 
$
639,523


 
Six Months Ended June 30, 2018
 
Number of
common
shares
 
Common
stock
 
Retained
earnings
 
Accumulated
other
comprehensive loss, net
 
Total
stockholders’
equity
Balance at December 31, 2017
29,928

 
$
360,590

 
$
149,013

 
$
(1,298
)
 
$
508,305

Restricted stock units vested, net of forfeitures of restricted stock awards
30

 

 

 

 

Exercise of stock options
3

 
47

 

 

 
47

Stock-based compensation expense

 
1,307

 

 

 
1,307

Common stock repurchased
(52
)
 
(1,688
)
 

 

 
(1,688
)
Net income

 

 
20,944

 

 
20,944

Other comprehensive loss, net of tax

 

 

 
(9,915
)
 
(9,915
)
Common stock issued in business combination
4,112

 
130,770

 

 

 
130,770

Cash dividends declared on common stock ($0.30 per share)

 

 
(10,247
)
 

 
(10,247
)
Effects of implementation of accounting change related to equity investments, net

 

 
93

 
(93
)
 

Balance at June 30, 2018
34,021

 
$
491,026

 
$
159,803

 
$
(11,306
)
 
$
639,523

See accompanying Notes to Condensed Consolidated Financial Statements.


9




HERITAGE FINANCIAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)
 
 
Six Months Ended June 30,
 
 
2019
 
2018
Cash flows from operating activities:
 
 
 
 
Net income
 
$
32,536

 
$
20,944

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
Depreciation of premises and equipment, amortization of securities available for sale, and amortization of discount of junior subordinated debentures
 
4,255

 
5,140

Changes in net deferred loan costs, net of amortization
 
829

 
(254
)
Provision for loan losses
 
2,287

 
2,902

Net change in accrued interest receivable, prepaid expenses and other assets, and accrued expenses and other liabilities
 
(3,645
)
 
419

Stock-based compensation expense
 
1,536

 
1,307

Amortization of intangible assets
 
2,051

 
1,591

Origination of loans held for sale
 
(20,328
)
 
(40,048
)
Proceeds from sale of loans
 
18,811

 
39,962

Earnings on bank owned life insurance
 
(1,014
)
 
(666
)
Valuation adjustment on other real estate owned
 
51

 

Loss on sale of other real estate owned
 
279

 

Gain on sale of loans, net
 
(620
)
 
(1,580
)
Gain on sale of investment securities, net
 
(48
)
 
(53
)
Impairment of assets held for sale
 

 
75

Impairment of right of use asset
 
117

 

Gain on sale of premises and equipment, net
 
(10
)
 

Net cash provided by operating activities
 
37,087

 
29,739

Cash flows from investing activities:
 
 
 
 
Loans originated, net of principal payments
 
(65,972
)
 
(96,127
)
Maturities, calls and payments of investment securities available for sale
 
105,400

 
41,436

Purchase of investment securities available for sale
 
(104,324
)
 
(147,360
)
Proceeds from sales of investment securities available for sale
 
34,479

 
107,579

Purchase of premises and equipment
 
(6,374
)
 
(16,659
)
Proceeds from sales of other loans
 
54

 
4,532

Proceeds from sales of other real estate owned
 
429

 

Proceeds from redemption of Federal Home Loan Bank stock
 
12,684

 
22,138

Purchases of Federal Home Loan Bank stock
 
(16,613
)
 
(21,784
)
Proceeds from sales of premises and equipment
 
31

 
21

Capital contributions to low-income housing tax credit partnerships and new market tax credit partnerships, net
 
(2,242
)
 
(8,169
)
Net cash received from acquisitions
 

 
80,133

Net cash used in investing activities
 
(42,448
)
 
(34,260
)
Cash flows from financing activities:
 
 
 
 
Net (decrease) increase in deposits
 
(84,694
)
 
69,990

Federal Home Loan Bank advances
 
402,800

 
536,450

Repayments of Federal Home Loan Bank advances
 
(312,100
)
 
(553,450
)
Common stock cash dividends paid
 
(13,280
)
 
(10,247
)
Net decrease in securities sold under agreement to repurchase
 
(8,346
)
 
(9,653
)
Proceeds from exercise of stock options
 
42

 
47

Repurchase of common stock
 
(1,681
)
 
(1,688
)
Net cash (used in) provided by financing activities
 
(17,259
)
 
31,449


10




 
 
Six Months Ended June 30,
 
 
2019
 
2018
Net (decrease) increase in cash and cash equivalents
 
(22,620
)
 
26,928

Cash and cash equivalents at beginning of period
 
161,910

 
103,015

Cash and cash equivalents at end of period
 
$
139,290

 
$
129,943

 
 
 
 
 
Supplemental disclosures of cash flow information:
 
 
 
 
Cash paid for interest
 
$
8,535

 
$
5,156

Cash paid for income taxes
 
5,545

 
2,724

 
 
 
 
 
Supplemental non-cash disclosures of cash flow information:
 
 
 
 
Transfers of loans receivable to other real estate owned
 
$

 
$
434

Transfers of properties held for sale recorded in premises and equipment, net to prepaid expenses and other assets
 
763

 
221

Transfer of BOLI to prepaid expenses and other assets
 
209

 

     Business Combinations:
 
 
 
 
Common stock issued for business combinations
 

 
130,770

Assets acquired (liabilities assumed) in acquisitions:
 
 
 
 
Investment securities available for sale
 
R