HOME BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
March 31,
2016
|
|
|
(Audited)
December 31,
2015
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
17,960,269
|
|
|
$
|
24,797,599
|
|
Interest-bearing deposits in banks
|
|
|
4,653,585
|
|
|
|
5,143,585
|
|
Investment securities available for sale, at fair value
|
|
|
178,533,171
|
|
|
|
176,762,200
|
|
Investment securities held to maturity (fair values of $14,144,886 and $14,120,842,
respectively)
|
|
|
13,845,761
|
|
|
|
13,926,861
|
|
Mortgage loans held for sale
|
|
|
11,504,158
|
|
|
|
5,651,250
|
|
Loans, net of unearned income
|
|
|
1,218,059,238
|
|
|
|
1,224,365,916
|
|
Allowance for loan losses
|
|
|
(10,397,231
|
)
|
|
|
(9,547,487
|
)
|
|
|
|
|
|
|
|
|
|
Total loans, net of unearned income and allowance for loan losses
|
|
|
1,207,662,007
|
|
|
|
1,214,818,429
|
|
|
|
|
|
|
|
|
|
|
Office properties and equipment, net
|
|
|
42,190,686
|
|
|
|
40,815,744
|
|
Cash surrender value of bank-owned life insurance
|
|
|
19,787,613
|
|
|
|
19,666,900
|
|
Accrued interest receivable and other assets
|
|
|
47,983,954
|
|
|
|
50,329,032
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
$
|
1,544,121,204
|
|
|
$
|
1,551,911,600
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
Noninterest-bearing
|
|
$
|
292,410,344
|
|
|
$
|
296,616,693
|
|
Interest-bearing
|
|
|
951,288,494
|
|
|
|
947,599,823
|
|
|
|
|
|
|
|
|
|
|
Total deposits
|
|
|
1,243,698,838
|
|
|
|
1,244,216,516
|
|
Short-term Federal Home Loan Bank (FHLB) advances
|
|
|
28,157,593
|
|
|
|
39,939,375
|
|
Long-term Federal Home Loan Bank (FHLB) advances
|
|
|
84,853,020
|
|
|
|
85,213,222
|
|
Accrued interest payable and other liabilities
|
|
|
18,247,985
|
|
|
|
17,496,133
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities
|
|
|
1,374,957,436
|
|
|
|
1,386,865,246
|
|
|
|
|
|
|
|
|
|
|
Shareholders Equity
|
|
|
|
|
|
|
|
|
Preferred stock, $0.01 par value10,000,000 shares authorized; none issued
|
|
|
|
|
|
|
|
|
Common stock, $0.01 par value40,000,000 shares authorized; 7,256,671 and 7,239,821 shares
issued and outstanding, respectively
|
|
|
72,568
|
|
|
|
72,399
|
|
Additional paid-in capital
|
|
|
77,389,045
|
|
|
|
76,948,914
|
|
Unallocated common stock held by:
|
|
|
|
|
|
|
|
|
Employee Stock Ownership Plan (ESOP)
|
|
|
(4,463,400
|
)
|
|
|
(4,552,670
|
)
|
Recognition and Retention Plan (RRP)
|
|
|
(156,678
|
)
|
|
|
(158,590
|
)
|
Retained earnings
|
|
|
94,542,265
|
|
|
|
91,864,543
|
|
Accumulated other comprehensive income
|
|
|
1,779,968
|
|
|
|
871,758
|
|
|
|
|
|
|
|
|
|
|
Total Shareholders Equity
|
|
|
169,163,768
|
|
|
|
165,046,354
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Shareholders Equity
|
|
$
|
1,544,121,204
|
|
|
$
|
1,551,911,600
|
|
|
|
|
|
|
|
|
|
|
The accompanying Notes are an integral part of these Consolidated Financial Statements.
1
HOME BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2016
|
|
|
2015
|
|
Interest Income
|
|
|
|
|
|
|
|
|
Loans, including fees
|
|
$
|
16,018,095
|
|
|
$
|
12,360,963
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
Taxable interest
|
|
|
798,352
|
|
|
|
735,637
|
|
Tax-exempt interest
|
|
|
172,732
|
|
|
|
174,484
|
|
Other investments and deposits
|
|
|
59,382
|
|
|
|
33,752
|
|
|
|
|
|
|
|
|
|
|
Total interest income
|
|
|
17,048,561
|
|
|
|
13,304,836
|
|
|
|
|
|
|
|
|
|
|
Interest Expense
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
931,853
|
|
|
|
684,979
|
|
Securities sold under repurchase agreement
|
|
|
|
|
|
|
18,429
|
|
Short-term FHLB advances
|
|
|
43,598
|
|
|
|
6,071
|
|
Long-term FHLB advances
|
|
|
350,629
|
|
|
|
103,235
|
|
|
|
|
|
|
|
|
|
|
Total interest expense
|
|
|
1,326,080
|
|
|
|
812,714
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
|
15,722,481
|
|
|
|
12,492,122
|
|
Provision for loan losses
|
|
|
850,000
|
|
|
|
538,487
|
|
|
|
|
|
|
|
|
|
|
Net interest income after provision for loan losses
|
|
|
14,872,481
|
|
|
|
11,953,635
|
|
|
|
|
|
|
|
|
|
|
Noninterest Income
|
|
|
|
|
|
|
|
|
Service fees and charges
|
|
|
1,036,410
|
|
|
|
892,118
|
|
Bank card fees
|
|
|
601,201
|
|
|
|
565,584
|
|
Gain on sale of loans, net
|
|
|
300,673
|
|
|
|
373,173
|
|
Income from bank-owned life insurance
|
|
|
120,712
|
|
|
|
132,359
|
|
Other income
|
|
|
508,282
|
|
|
|
115,450
|
|
|
|
|
|
|
|
|
|
|
Total noninterest income
|
|
|
2,567,278
|
|
|
|
2,078,684
|
|
|
|
|
|
|
|
|
|
|
Noninterest Expense
|
|
|
|
|
|
|
|
|
Compensation and benefits
|
|
|
7,201,036
|
|
|
|
5,760,787
|
|
Occupancy
|
|
|
1,309,597
|
|
|
|
1,171,280
|
|
Marketing and advertising
|
|
|
257,664
|
|
|
|
110,328
|
|
Data processing and communication
|
|
|
1,543,715
|
|
|
|
943,332
|
|
Professional services
|
|
|
294,207
|
|
|
|
238,175
|
|
Forms, printing and supplies
|
|
|
177,292
|
|
|
|
144,810
|
|
Franchise and shares tax
|
|
|
219,773
|
|
|
|
147,272
|
|
Regulatory fees
|
|
|
322,691
|
|
|
|
280,467
|
|
Foreclosed assets, net
|
|
|
118,377
|
|
|
|
235,782
|
|
Other expenses
|
|
|
896,836
|
|
|
|
686,853
|
|
|
|
|
|
|
|
|
|
|
Total noninterest expense
|
|
|
12,341,188
|
|
|
|
9,719,086
|
|
|
|
|
|
|
|
|
|
|
Income before income tax expense
|
|
|
5,098,571
|
|
|
|
4,313,233
|
|
Income tax expense
|
|
|
1,748,893
|
|
|
|
1,465,469
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
3,349,678
|
|
|
$
|
2,847,764
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.49
|
|
|
$
|
0.43
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$
|
0.47
|
|
|
$
|
0.41
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per common share
|
|
$
|
0.09
|
|
|
$
|
0.07
|
|
|
|
|
|
|
|
|
|
|
The accompanying Notes are an integral part of these Consolidated Financial Statements.
2
HOME BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2016
|
|
|
2015
|
|
Net Income
|
|
$
|
3,349,678
|
|
|
$
|
2,847,764
|
|
|
|
|
|
|
|
|
|
|
Other Comprehensive Income
|
|
|
|
|
|
|
|
|
Unrealized gains on investment securities
|
|
$
|
1,397,246
|
|
|
$
|
616,469
|
|
Tax effect
|
|
|
(489,036
|
)
|
|
|
(215,764
|
)
|
|
|
|
|
|
|
|
|
|
Other comprehensive income, net of taxes
|
|
$
|
908,210
|
|
|
$
|
400,705
|
|
|
|
|
|
|
|
|
|
|
Comprehensive Income
|
|
$
|
4,257,888
|
|
|
$
|
3,248,469
|
|
|
|
|
|
|
|
|
|
|
The accompanying Notes are an integral part of these Consolidated Financial Statements.
3
HOME BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
Stock
|
|
|
Additional
Paid-in
Capital
|
|
|
Treasury
Stock
|
|
|
Unallocated
Common Stock
Held by ESOP
|
|
|
Unallocated
Common Stock
Held by RRP
|
|
|
Retained
Earnings
|
|
|
Accumulated
Other
Comprehensive
Income
|
|
|
Total
|
|
Balance, December 31, 2014
(1
)
|
|
$
|
90,088
|
|
|
$
|
93,332,108
|
|
|
$
|
(28,572,891
|
)
|
|
$
|
(4,909,750
|
)
|
|
$
|
(202,590
|
)
|
|
$
|
93,101,915
|
|
|
$
|
1,304,876
|
|
|
$
|
154,143,756
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,847,764
|
|
|
|
|
|
|
|
2,847,764
|
|
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
400,705
|
|
|
|
400,705
|
|
Purchase of Companys common shares at cost, 83,193 shares
|
|
|
|
|
|
|
|
|
|
|
(1,800,042
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,800,042
|
)
|
Cash dividends declared, $0.07 per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(500,383
|
)
|
|
|
|
|
|
|
(500,383
|
)
|
Exercise of stock options
|
|
|
1,234
|
|
|
|
1,425,616
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,426,850
|
|
ESOP shares released for allocation
|
|
|
|
|
|
|
141,619
|
|
|
|
|
|
|
|
89,270
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
230,889
|
|
Share-based compensation cost
|
|
|
|
|
|
|
32,940
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32,940
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, March 31, 2015
|
|
$
|
91,322
|
|
|
$
|
94,932,283
|
|
|
$
|
(30,372,933
|
)
|
|
$
|
(4,820,480
|
)
|
|
$
|
(202,590
|
)
|
|
$
|
95,449,296
|
|
|
$
|
1,705,581
|
|
|
$
|
156,782,479
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31,
2015
(1
)
|
|
$
|
72,399
|
|
|
$
|
76,948,914
|
|
|
$
|
|
|
|
$
|
(4,552,670
|
)
|
|
$
|
(158,590
|
)
|
|
$
|
91,864,543
|
|
|
$
|
871,758
|
|
|
$
|
165,046,354
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,349,678
|
|
|
|
|
|
|
|
3,349,678
|
|
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
908,210
|
|
|
|
908,210
|
|
Purchase of Companys common shares at cost, 1,250 shares
|
|
|
(13
|
)
|
|
|
(12,488
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(19,949
|
)
|
|
|
|
|
|
|
(32,450
|
)
|
Cash dividends declared, $0.09 per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(652,007
|
)
|
|
|
|
|
|
|
(652,007
|
)
|
Exercise of stock options
|
|
|
182
|
|
|
|
207,064
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
207,246
|
|
ESOP shares released for allocation
|
|
|
|
|
|
|
180,813
|
|
|
|
|
|
|
|
89,270
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
270,083
|
|
Restricted stock vesting
|
|
|
|
|
|
|
(1,594
|
)
|
|
|
|
|
|
|
|
|
|
|
1,912
|
|
|
|
|
|
|
|
|
|
|
|
318
|
|
Share-based compensation cost
|
|
|
|
|
|
|
66,336
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
66,336
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, March 31, 2016
|
|
$
|
72,568
|
|
|
$
|
77,389,045
|
|
|
$
|
|
|
|
$
|
(4,463,400
|
)
|
|
$
|
(156,678
|
)
|
|
$
|
94,542,265
|
|
|
$
|
1,779,968
|
|
|
$
|
169,163,768
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Balances as of December 31, 2014 and December 31, 2015 are audited.
|
The
accompanying Notes are an integral part of these Consolidated Financial Statements.
4
HOME BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
March 31,
|
|
|
|
2016
|
|
|
2015
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
3,349,678
|
|
|
$
|
2,847,764
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
Provision for loan losses
|
|
|
850,000
|
|
|
|
538,487
|
|
Depreciation
|
|
|
456,262
|
|
|
|
447,898
|
|
Amortization of purchase accounting valuations and intangibles
|
|
|
532,980
|
|
|
|
1,214,457
|
|
Net amortization of mortgage servicing asset
|
|
|
65,745
|
|
|
|
31,270
|
|
Federal Home Loan Bank stock dividends
|
|
|
(19,900
|
)
|
|
|
(3,900
|
)
|
Net amortization of premium on investments
|
|
|
370,778
|
|
|
|
354,341
|
|
Gain on loans sold, net
|
|
|
(300,673
|
)
|
|
|
(373,173
|
)
|
Proceeds, including principal payments, from loans held for sale
|
|
|
27,923,041
|
|
|
|
35,200,887
|
|
Originations of loans held for sale
|
|
|
(33,475,276
|
)
|
|
|
(35,933,388
|
)
|
Non-cash compensation
|
|
|
295,441
|
|
|
|
226,961
|
|
Deferred income tax (benefit) provision
|
|
|
117,024
|
|
|
|
(43,135
|
)
|
Decrease (increase) in interest receivable and other assets
|
|
|
946,840
|
|
|
|
(316,553
|
)
|
Increase in cash surrender value of bank-owned life insurance
|
|
|
(120,713
|
)
|
|
|
(132,359
|
)
|
Increase (decrease) in accrued interest payable and other liabilities
|
|
|
810,030
|
|
|
|
(494,581
|
)
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
1,801,257
|
|
|
|
3,564,976
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
Purchases of securities available for sale
|
|
|
(7,968,779
|
)
|
|
|
(3,126,663
|
)
|
Purchases of securities held to maturity
|
|
|
|
|
|
|
(2,273,910
|
)
|
Proceeds from maturities, prepayments and calls on securities available for sale
|
|
|
7,305,376
|
|
|
|
6,767,654
|
|
Net change in loans
|
|
|
6,303,936
|
|
|
|
(14,586,858
|
)
|
Reimbursement from FDIC for covered assets
|
|
|
|
|
|
|
130,933
|
|
Decrease in interest bearing deposits in other banks
|
|
|
490,000
|
|
|
|
|
|
Proceeds from sale of repossessed assets
|
|
|
105,760
|
|
|
|
496,798
|
|
Purchases of office properties and equipment
|
|
|
(1,831,792
|
)
|
|
|
(67,570
|
)
|
Proceeds from sale of properties and equipment
|
|
|
595
|
|
|
|
500
|
|
Purchases of Federal Home Loan Bank stock
|
|
|
|
|
|
|
(722,500
|
)
|
Proceeds from redemption of Federal Home Loan Bank stock
|
|
|
|
|
|
|
1,272,900
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) investing activities
|
|
|
4,405,096
|
|
|
|
(12,108,716
|
)
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
(Decrease) increase in deposits
|
|
|
(483,612
|
)
|
|
|
33,015,266
|
|
Borrowings on Federal Home Loan Bank advances
|
|
|
1,176,750,000
|
|
|
|
1,038,050,000
|
|
Repayments of Federal Home Loan Bank advances
|
|
|
(1,188,832,860
|
)
|
|
|
(1,060,550,000
|
)
|
Purchase of Companys common stock
|
|
|
(32,450
|
)
|
|
|
(1,800,042
|
)
|
Proceeds from exercise of stock options
|
|
|
207,246
|
|
|
|
1,426,850
|
|
Payment of dividends on common stock
|
|
|
(652,007
|
)
|
|
|
(500,383
|
)
|
|
|
|
|
|
|
|
|
|
Net cash (used in) provided by financing activities
|
|
|
(13,043,683
|
)
|
|
|
9,641,691
|
|
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents
|
|
|
(6,837,330
|
)
|
|
|
1,097,951
|
|
Cash and cash equivalents at beginning of year
|
|
|
24,797,599
|
|
|
|
29,077,907
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
17,960,269
|
|
|
$
|
30,175,858
|
|
|
|
|
|
|
|
|
|
|
The accompanying Notes are an integral part of these Consolidated Financial Statements.
5
HOME BANCORP, INC. AND SUBSIDIARY
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Presentation
The accompanying unaudited consolidated financial statements of Home Bancorp, Inc. (the Company) were prepared in accordance
with instructions for Form 10-Q and Regulation S-X and do not include information or footnotes necessary for a complete presentation of financial condition, results of operations, comprehensive income, changes in shareholders equity and cash
flows in conformity with accounting principles generally accepted in the United States of America. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial
statements have been included. The results of operations for the three-month period ended March 31, 2016 are not necessarily indicative of the results which may be expected for the entire fiscal year. These statements should be read in
conjunction with the Consolidated Financial Statements and notes thereto included in the Companys Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) for the year ended December 31, 2015.
In preparing the financial statements, the Company is required to make estimates and assumptions that affect the amounts reported in the financial
statements and accompanying notes. Actual results could differ from those estimates. The financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the Companys financial
condition, results of operations, comprehensive income, changes in shareholders equity and cash flows for the interim periods presented. These adjustments are of a normal recurring nature and include appropriate estimated provisions.
Certain amounts reported in prior periods have been reclassified to conform to the current period presentation. Such reclassifications had no effect on
previously reported shareholders equity or net income.
2. Recent Accounting Pronouncements
In January 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-01,
Recognition and Measurement of Financial Assets and Financial Liabilities. The ASU amendments include changes related to how certain equity investments are measured, recognize changes in the fair value of certain financial liabilities
measured under the fair value option, and disclose and present financial assets and liabilities on the Companys consolidated financial statements. Additionally, the ASU will also require entities to present financial assets and financial
liabilities separately, grouped by measurement category and form of financial asset in the statement of financial position or in the accompanying notes to the financial statements. Entities will also no longer have to disclose the methods and
significant assumptions for financial instruments measured at amortized cost, but will be required to measure such instruments under the exit price notion for disclosure purposes. The ASU is effective for annual and interim periods
beginning after December 15, 2017. The adoption of this ASU is not expected to have a material effect on our Consolidated Financial Statements.
In
February 2016, the FASB issued ASU 2016-02, Conforming Amendments Related to Leases. This ASU amends the codification regarding leases in order to increase transparency and comparability. The ASU requires companies to recognize lease
assets and liabilities on the statement of condition and disclose key information about leasing arrangements. A lessee would recognize a liability to make lease payments and a right-of-use asset representing its right to use the leased asset for the
lease term. The ASU is effective for annual and interim periods beginning after December 15, 2018. The adoption of this ASU is not expected to have a material effect on our Consolidated Financial Statements.
6
In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting.
The ASU amends the codification to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification in the statement
of cash flows. This ASU is effective for annual and interim periods beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this guidance on the Consolidated Financial
Statements.
3. Investment Securities
Summary information regarding the Companys investment securities classified as available for sale and held to maturity as of
March 31, 2016 and December 31, 2015 is as follows.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
Amortized
Cost
|
|
|
Gross
Unrealized
Gains
|
|
|
Gross Unrealized
Losses
|
|
|
Fair Value
|
|
March 31, 2016
|
|
|
|
|
|
|
|
Less Than
1 Year
|
|
|
Over
1 Year
|
|
|
|
|
Available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. agency mortgage-backed
|
|
$
|
135,724
|
|
|
$
|
2,161
|
|
|
$
|
38
|
|
|
$
|
150
|
|
|
$
|
137,697
|
|
Non-U.S. agency mortgage-backed
|
|
|
5,857
|
|
|
|
29
|
|
|
|
8
|
|
|
|
57
|
|
|
|
5,821
|
|
Municipal bonds
|
|
|
22,131
|
|
|
|
592
|
|
|
|
2
|
|
|
|
|
|
|
|
22,721
|
|
U.S. government agency
|
|
|
12,085
|
|
|
|
214
|
|
|
|
5
|
|
|
|
|
|
|
|
12,294
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total available for sale
|
|
$
|
175,797
|
|
|
$
|
2,996
|
|
|
$
|
53
|
|
|
$
|
207
|
|
|
$
|
178,533
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal bonds
|
|
$
|
13,846
|
|
|
$
|
316
|
|
|
$
|
|
|
|
$
|
17
|
|
|
$
|
14,145
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
Amortized
Cost
|
|
|
Gross
Unrealized
Gains
|
|
|
Gross Unrealized
Losses
|
|
|
Fair Value
|
|
December 31, 2015
|
|
|
|
|
|
|
|
Less Than
1 Year
|
|
|
Over
1 Year
|
|
|
|
|
Available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. agency mortgage-backed
|
|
$
|
134,748
|
|
|
$
|
1,464
|
|
|
$
|
287
|
|
|
$
|
447
|
|
|
$
|
135,478
|
|
Non-U.S. agency mortgage-backed
|
|
|
6,055
|
|
|
|
51
|
|
|
|
|
|
|
|
41
|
|
|
|
6,065
|
|
Municipal bonds
|
|
|
22,453
|
|
|
|
490
|
|
|
|
10
|
|
|
|
|
|
|
|
22,933
|
|
U.S. government agency
|
|
|
12,166
|
|
|
|
145
|
|
|
|
25
|
|
|
|
|
|
|
|
12,286
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total available for sale
|
|
$
|
175,422
|
|
|
$
|
2,150
|
|
|
$
|
322
|
|
|
$
|
488
|
|
|
$
|
176,762
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal bonds
|
|
$
|
13,927
|
|
|
$
|
239
|
|
|
$
|
45
|
|
|
$
|
|
|
|
$
|
14,121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7
The estimated fair value and amortized cost by maturity of the Companys investment securities as of
March 31, 2016 are shown in the following tables. Securities are classified according to their contractual maturities without consideration of principal amortization, potential prepayments or call options. The expected maturity of a security
may differ from its contractual maturity because of prepayments or the exercise of call options. Accordingly, actual maturities may differ from contractual maturities.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
One Year
or Less
|
|
|
One Year to
Five Years
|
|
|
Five to
Ten Years
|
|
|
Over
Ten Years
|
|
|
Total
|
|
Fair Value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. agency mortgage-backed
|
|
$
|
1,902
|
|
|
$
|
5,914
|
|
|
$
|
35,834
|
|
|
$
|
94,047
|
|
|
$
|
137,697
|
|
Non-U.S. agency mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,821
|
|
|
|
5,821
|
|
Municipal bonds
|
|
|
2,600
|
|
|
|
8,235
|
|
|
|
10,123
|
|
|
|
1,763
|
|
|
|
22,721
|
|
U.S. government agency
|
|
|
|
|
|
|
8,114
|
|
|
|
|
|
|
|
4,180
|
|
|
|
12,294
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total available for sale
|
|
$
|
4,502
|
|
|
$
|
22,263
|
|
|
$
|
45,957
|
|
|
$
|
105,811
|
|
|
$
|
178,533
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal bonds
|
|
$
|
236
|
|
|
$
|
1,104
|
|
|
$
|
9,350
|
|
|
$
|
3,455
|
|
|
$
|
14,145
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investment securities
|
|
$
|
4,738
|
|
|
$
|
23,367
|
|
|
$
|
55,307
|
|
|
$
|
109,266
|
|
|
$
|
192,678
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
One Year
or Less
|
|
|
One Year to
Five Years
|
|
|
Five to
Ten Years
|
|
|
Over
Ten Years
|
|
|
Total
|
|
Amortized Cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. agency mortgage-backed
|
|
$
|
1,902
|
|
|
$
|
5,818
|
|
|
$
|
35,405
|
|
|
$
|
92,599
|
|
|
$
|
135,724
|
|
Non-U.S. agency mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,857
|
|
|
|
5,857
|
|
Municipal bonds
|
|
|
2,584
|
|
|
|
7,987
|
|
|
|
9,912
|
|
|
|
1,648
|
|
|
|
22,131
|
|
U.S. government agency
|
|
|
|
|
|
|
7,989
|
|
|
|
|
|
|
|
4,096
|
|
|
|
12,085
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total available for sale
|
|
$
|
4,486
|
|
|
$
|
21,794
|
|
|
$
|
45,317
|
|
|
$
|
104,200
|
|
|
$
|
175,797
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal bonds
|
|
$
|
236
|
|
|
$
|
1,080
|
|
|
$
|
9,100
|
|
|
$
|
3,430
|
|
|
$
|
13,846
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investment securities
|
|
$
|
4,722
|
|
|
$
|
22,874
|
|
|
$
|
54,417
|
|
|
$
|
107,630
|
|
|
$
|
189,643
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management evaluates securities for other-than-temporary impairment at least quarterly, and more frequently when economic and
market conditions warrant such evaluations. Consideration is given to (1) the extent and length of time the fair value has been below cost; (2) the reasons for the decline in value; and (3) the Companys intent to sell a security
or whether it is more likely than not the Company will be required to sell the security before the recovery of its amortized cost, which may extend to maturity.
The Company performs a process to identify securities that could potentially have a credit impairment that is other-than-temporary. This process involves
evaluating each security for impairment by monitoring credit performance, collateral type, collateral geography, bond credit support, loan-to-value ratios, credit scores, loss severity levels, pricing levels, downgrades by rating agencies, cash flow
projections and other factors as indicators of potential credit issues. When the Company determines that a security is deemed to be other-than-temporarily impaired, an impairment loss is recognized.
As of March 31, 2016, 26 of the Companys debt securities had unrealized losses totaling 0.8% of the individual securities amortized cost
basis and 0.1% of the Companys total amortized cost basis of the investment securities portfolio. At such date, 12 of the 26 securities had been in a continuous loss position for over 12 months. The 12 securities had an aggregate amortized
cost basis of $15.3 million and unrealized loss of $224,000 at March 31, 2016. Management has the intent and ability to hold these debt securities until maturity, or until anticipated recovery; hence, no declines in these 12 securities were
deemed to be other-than-temporary.
8
As of March 31, 2016 and December 31, 2015, the Company had $97,464,000 and $94,661,000, respectively,
of securities pledged to secure public deposits.
4. Earnings Per Share
Earnings per common share were computed based on the following:
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
(in thousands, except per share data)
|
|
2016
|
|
|
2015
|
|
Numerator:
|
|
|
|
|
|
|
|
|
Net income available to common shareholders
|
|
$
|
3,350
|
|
|
$
|
2,848
|
|
Denominator:
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding
|
|
|
6,784
|
|
|
|
6,634
|
|
Effect of dilutive securities:
|
|
|
|
|
|
|
|
|
Restricted stock
|
|
|
3
|
|
|
|
3
|
|
Stock options
|
|
|
265
|
|
|
|
325
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding assuming dilution
|
|
|
7,052
|
|
|
|
6,962
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share
|
|
$
|
0.49
|
|
|
$
|
0.43
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share
|
|
$
|
0.47
|
|
|
$
|
0.41
|
|
|
|
|
|
|
|
|
|
|
Options on 69,096 and 9,500 shares of common stock were not included in the computation of diluted earnings per share for the
three months ended March 31, 2016 and March 31, 2015, respectively, because the effect of these shares was anti-dilutive.
5. Credit Quality and Allowance for Loan Losses
The following briefly describes the distinction between originated and acquired loans and certain significant accounting policies relevant
to each category.
Originated Loans
Loans originated
for investment are reported at the principal balance outstanding net of unearned income. Interest on loans and accretion of unearned income are computed in a manner that approximates a level yield on recorded principal. Interest on loans is recorded
as income is earned. The accrual of interest on an originated loan is discontinued when it is probable the borrower will not be able to meet payment obligations as they become due. The Company maintains an allowance for loan losses on originated
loans that represents managements estimate of probable losses incurred in this portfolio category.
Acquired Loans
Loans that were acquired as a result of our acquisitions of certain assets and liabilities of Statewide Bank (Statewide) of Covington, Louisiana,
on March 12, 2010, and the acquisitions of GS Financial Corp. (GSFC), the former holding company of Guaranty Savings Bank of Metairie, Louisiana, on July 15, 2011, Britton & Koontz Capital Corporation
(Britton & Koontz), the former holding company of Britton & Koontz Bank, N.A. (Britton & Koontz Bank) of Natchez, Mississippi on February 14, 2014, and Louisiana Bancorp, Inc. (Louisiana
Bancorp), the former holding company of Bank of New Orleans (BNO) of Metairie, Louisiana on September 15, 2015 are referred to as Acquired Loans.
Acquired Loans were recorded at estimated fair value at the acquisition date with no carryover of the related allowance for loan losses. The acquired loans
were segregated between those considered to be performing (acquired performing) and those with evidence of credit deterioration (acquired impaired), and then further
9
segregated into loan pools designed to facilitate the estimation of expected cash flows. The fair value estimate for each pool of acquired performing and acquired impaired loans was based on the
estimate of expected cash flows, both principal and interest, from that pool, discounted at prevailing market interest rates.
The difference between the
fair value of an acquired performing loan pool and the contractual amounts due at the acquisition date (the fair value discount) is accreted into income over the estimated life of the pool. Management estimates an allowance for loan
losses for acquired performing loans using a methodology similar to that used for originated loans. The allowance determined for each loan pool is compared to the remaining fair value discount for that pool. If the allowance amount calculated under
the Companys methodology is greater than the Companys remaining discount, the additional amount called for is added to the reported allowance through a provision for loan losses. If the allowance amount calculated under the
Companys methodology is less than the Companys recorded discount, no additional allowance or provision is recognized. Actual losses first reduce any remaining nonaccretable discount for the loan pool. Once the nonaccretable discount is
fully depleted, losses are applied against the allowance established for that pool. Acquired performing loans are placed on nonaccrual status and considered and reported as nonperforming or past due using the same criteria applied to the originated
portfolio.
The excess of cash flows expected to be collected from an acquired impaired loan pool over the pools estimated fair value at acquisition
is referred to as the accretable yield and is recognized in interest income using an effective yield method over the remaining life of the pool. Each pool of acquired impaired loans is accounted for as a single asset with a single composite interest
rate and an aggregate expectation of cash flows.
Management recasts the estimate of cash flows expected to be collected on each acquired impaired
loan pool periodically. If the present value of expected cash flows for a pool is less than its carrying value, an impairment is recognized by an increase in the allowance for loan losses and a charge to the provision for loan losses. If the present
value of expected cash flows for a pool is greater than its carrying value, any previously established allowance for loan losses is reversed and any remaining difference increases the accretable yield which will be taken into interest income over
the remaining life of the loan pool. Acquired impaired loans are generally not subject to individual evaluation for impairment and are not reported with impaired loans, even if they would otherwise qualify for such treatment
.
The allowance for loan losses and recorded investment in loans as of the dates indicated are as follows.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of March 31, 2016
|
|
|
|
Originated Loans
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
Collectively
Evaluated for
Impairment
|
|
|
Individually
Evaluated for
Impairment
|
|
|
Acquired
Loans
|
|
|
Total
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
1,391
|
|
|
$
|
34
|
|
|
$
|
92
|
|
|
$
|
1,517
|
|
Home equity loans and lines
|
|
|
575
|
|
|
|
|
|
|
|
318
|
|
|
|
893
|
|
Commercial real estate
|
|
|
3,180
|
|
|
|
86
|
|
|
|
|
|
|
|
3,266
|
|
Construction and land
|
|
|
1,372
|
|
|
|
|
|
|
|
57
|
|
|
|
1,429
|
|
Multi-family residential
|
|
|
175
|
|
|
|
|
|
|
|
|
|
|
|
175
|
|
Commercial and industrial
|
|
|
2,031
|
|
|
|
418
|
|
|
|
113
|
|
|
|
2,562
|
|
Consumer
|
|
|
555
|
|
|
|
|
|
|
|
|
|
|
|
555
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for loan losses
|
|
$
|
9,279
|
|
|
$
|
538
|
|
|
$
|
580
|
|
|
$
|
10,397
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of March 31, 2016
|
|
|
|
Originated Loans
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
Collectively
Evaluated for
Impairment
|
|
|
Individually
Evaluated for
Impairment
|
|
|
Acquired
Loans
(1)
|
|
|
Total
|
|
Recorded investment in loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
189,371
|
|
|
$
|
81
|
|
|
$
|
198,838
|
|
|
$
|
388,290
|
|
Home equity loans and lines
|
|
|
44,527
|
|
|
|
|
|
|
|
51,529
|
|
|
|
96,056
|
|
Commercial real estate
|
|
|
294,389
|
|
|
|
165
|
|
|
|
113,612
|
|
|
|
408,166
|
|
Construction and land
|
|
|
112,289
|
|
|
|
|
|
|
|
4,958
|
|
|
|
117,247
|
|
Multi-family residential
|
|
|
15,141
|
|
|
|
|
|
|
|
22,286
|
|
|
|
37,427
|
|
Commercial and industrial
|
|
|
113,564
|
|
|
|
1,053
|
|
|
|
9,846
|
|
|
|
124,463
|
|
Consumer
|
|
|
44,486
|
|
|
|
|
|
|
|
1,924
|
|
|
|
46,410
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
813,767
|
|
|
$
|
1,299
|
|
|
$
|
402,993
|
|
|
$
|
1,218,059
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2015
|
|
|
|
Originated Loans
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
Collectively
Evaluated for
Impairment
|
|
|
Individually
Evaluated for
Impairment
|
|
|
Acquired
Loans
|
|
|
Total
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
1,338
|
|
|
$
|
34
|
|
|
$
|
92
|
|
|
$
|
1,464
|
|
Home equity loans and lines
|
|
|
536
|
|
|
|
|
|
|
|
224
|
|
|
|
760
|
|
Commercial real estate
|
|
|
3,066
|
|
|
|
86
|
|
|
|
|
|
|
|
3,152
|
|
Construction and land
|
|
|
1,360
|
|
|
|
|
|
|
|
57
|
|
|
|
1,417
|
|
Multi-family residential
|
|
|
173
|
|
|
|
|
|
|
|
|
|
|
|
173
|
|
Commercial and industrial
|
|
|
1,977
|
|
|
|
33
|
|
|
|
|
|
|
|
2,010
|
|
Consumer
|
|
|
571
|
|
|
|
|
|
|
|
|
|
|
|
571
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for loan losses
|
|
$
|
9,021
|
|
|
$
|
153
|
|
|
$
|
373
|
|
|
$
|
9,547
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2015
|
|
|
|
Originated Loans
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
Collectively
Evaluated for
Impairment
|
|
|
Individually
Evaluated for
Impairment
|
|
|
Acquired
Loans
(1)
|
|
|
Total
|
|
Recorded investment in loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
185,802
|
|
|
$
|
78
|
|
|
$
|
205,386
|
|
|
$
|
391,266
|
|
Home equity loans and lines
|
|
|
40,251
|
|
|
|
|
|
|
|
53,809
|
|
|
|
94,060
|
|
Commercial real estate
|
|
|
285,856
|
|
|
|
181
|
|
|
|
119,342
|
|
|
|
405,379
|
|
Construction and land
|
|
|
109,007
|
|
|
|
|
|
|
|
7,768
|
|
|
|
116,775
|
|
Multi-family residential
|
|
|
14,962
|
|
|
|
|
|
|
|
28,901
|
|
|
|
43,863
|
|
Commercial and industrial
|
|
|
115,360
|
|
|
|
707
|
|
|
|
9,041
|
|
|
|
125,108
|
|
Consumer
|
|
|
45,641
|
|
|
|
|
|
|
|
2,274
|
|
|
|
47,915
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
796,879
|
|
|
$
|
966
|
|
|
$
|
426,521
|
|
|
$
|
1,224,366
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
$17.4 million and $20.0 million in acquired loans were accounted for under ASC 310-30 at March 31, 2016 and December 31, 2015, respectively.
|
11
A summary of activity in the allowance for loan losses during the three months ended March 31, 2016 and
March 31, 2015 follows.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended March 31, 2016
|
|
(dollars in thousands)
|
|
Beginning
Balance
|
|
|
Charge-offs
|
|
|
Recoveries
|
|
|
Provision
|
|
|
Ending
Balance
|
|
Originated loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
1,372
|
|
|
$
|
(3
|
)
|
|
$
|
|
|
|
$
|
56
|
|
|
$
|
1,425
|
|
Home equity loans and lines
|
|
|
536
|
|
|
|
|
|
|
|
1
|
|
|
|
38
|
|
|
|
575
|
|
Commercial real estate
|
|
|
3,152
|
|
|
|
|
|
|
|
|
|
|
|
114
|
|
|
|
3,266
|
|
Construction and land
|
|
|
1,360
|
|
|
|
|
|
|
|
|
|
|
|
12
|
|
|
|
1,372
|
|
Multi-family residential
|
|
|
173
|
|
|
|
|
|
|
|
|
|
|
|
2
|
|
|
|
175
|
|
Commercial and industrial
|
|
|
2,010
|
|
|
|
(47
|
)
|
|
|
10
|
|
|
|
476
|
|
|
|
2,449
|
|
Consumer
|
|
|
571
|
|
|
|
(56
|
)
|
|
|
1
|
|
|
|
39
|
|
|
|
555
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for loan losses
|
|
$
|
9,174
|
|
|
$
|
(106
|
)
|
|
$
|
12
|
|
|
$
|
737
|
|
|
$
|
9,817
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
92
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
92
|
|
Home equity loans and lines
|
|
|
224
|
|
|
|
|
|
|
|
|
|
|
|
94
|
|
|
|
318
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and land
|
|
|
57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
57
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
94
|
|
|
|
19
|
|
|
|
113
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for loan losses
|
|
$
|
373
|
|
|
$
|
|
|
|
$
|
94
|
|
|
$
|
113
|
|
|
$
|
580
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
1,464
|
|
|
$
|
(3
|
)
|
|
$
|
|
|
|
$
|
56
|
|
|
$
|
1,517
|
|
Home equity loans and lines
|
|
|
760
|
|
|
|
|
|
|
|
1
|
|
|
|
132
|
|
|
|
893
|
|
Commercial real estate
|
|
|
3,152
|
|
|
|
|
|
|
|
|
|
|
|
114
|
|
|
|
3,266
|
|
Construction and land
|
|
|
1,417
|
|
|
|
|
|
|
|
|
|
|
|
12
|
|
|
|
1,429
|
|
Multi-family residential
|
|
|
173
|
|
|
|
|
|
|
|
|
|
|
|
2
|
|
|
|
175
|
|
Commercial and industrial
|
|
|
2,010
|
|
|
|
(47
|
)
|
|
|
104
|
|
|
|
495
|
|
|
|
2,562
|
|
Consumer
|
|
|
571
|
|
|
|
(56
|
)
|
|
|
1
|
|
|
|
39
|
|
|
|
555
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for loan losses
|
|
$
|
9,547
|
|
|
$
|
(106
|
)
|
|
$
|
106
|
|
|
$
|
850
|
|
|
$
|
10,397
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended March 31, 2015
|
|
(dollars in thousands)
|
|
Beginning
Balance
|
|
|
Charge-offs
|
|
|
Recoveries
|
|
|
Provision
|
|
|
Ending
Balance
|
|
Originated loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
1,136
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
96
|
|
|
$
|
1,232
|
|
Home equity loans and lines
|
|
|
442
|
|
|
|
|
|
|
|
3
|
|
|
|
18
|
|
|
|
463
|
|
Commercial real estate
|
|
|
2,922
|
|
|
|
|
|
|
|
|
|
|
|
146
|
|
|
|
3,068
|
|
Construction and land
|
|
|
968
|
|
|
|
|
|
|
|
|
|
|
|
52
|
|
|
|
1,020
|
|
Multi-family residential
|
|
|
192
|
|
|
|
|
|
|
|
|
|
|
|
35
|
|
|
|
227
|
|
Commercial and industrial
|
|
|
1,161
|
|
|
|
(44
|
)
|
|
|
30
|
|
|
|
160
|
|
|
|
1,307
|
|
Consumer
|
|
|
521
|
|
|
|
(15
|
)
|
|
|
|
|
|
|
31
|
|
|
|
537
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for loan losses
|
|
$
|
7,342
|
|
|
$
|
(59
|
)
|
|
$
|
33
|
|
|
$
|
538
|
|
|
$
|
7,854
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
174
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
174
|
|
Home equity loans and lines
|
|
|
111
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
111
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and land
|
|
|
133
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
133
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for loan losses
|
|
$
|
418
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
418
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
1,310
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
96
|
|
|
$
|
1,406
|
|
Home equity loans and lines
|
|
|
553
|
|
|
|
|
|
|
|
3
|
|
|
|
18
|
|
|
|
574
|
|
Commercial real estate
|
|
|
2,922
|
|
|
|
|
|
|
|
|
|
|
|
146
|
|
|
|
3,068
|
|
Construction and land
|
|
|
1,101
|
|
|
|
|
|
|
|
|
|
|
|
52
|
|
|
|
1,153
|
|
Multi-family residential
|
|
|
192
|
|
|
|
|
|
|
|
|
|
|
|
35
|
|
|
|
227
|
|
Commercial and industrial
|
|
|
1,161
|
|
|
|
(44
|
)
|
|
|
30
|
|
|
|
160
|
|
|
|
1,307
|
|
Consumer
|
|
|
521
|
|
|
|
(15
|
)
|
|
|
|
|
|
|
31
|
|
|
|
537
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for loan losses
|
|
$
|
7,760
|
|
|
$
|
(59
|
)
|
|
$
|
33
|
|
|
$
|
538
|
|
|
$
|
8,272
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following tables present the Companys loan portfolio by credit quality classification as of the dates indicated.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2016
|
|
(dollars in thousands)
|
|
Pass
|
|
|
Special
Mention
|
|
|
Substandard
|
|
|
Doubtful
|
|
|
Total
|
|
Originated loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
187,617
|
|
|
$
|
427
|
|
|
$
|
1,408
|
|
|
$
|
|
|
|
$
|
189,452
|
|
Home equity loans and lines
|
|
|
43,689
|
|
|
|
367
|
|
|
|
471
|
|
|
|
|
|
|
|
44,527
|
|
Commercial real estate
|
|
|
291,532
|
|
|
|
974
|
|
|
|
2,048
|
|
|
|
|
|
|
|
294,554
|
|
Construction and land
|
|
|
111,583
|
|
|
|
30
|
|
|
|
676
|
|
|
|
|
|
|
|
112,289
|
|
Multi-family residential
|
|
|
15,141
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,141
|
|
Commercial and industrial
|
|
|
112,312
|
|
|
|
|
|
|
|
2,305
|
|
|
|
|
|
|
|
114,617
|
|
Consumer
|
|
|
44,020
|
|
|
|
64
|
|
|
|
402
|
|
|
|
|
|
|
|
44,486
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total originated loans
|
|
$
|
805,894
|
|
|
$
|
1,862
|
|
|
$
|
7,310
|
|
|
$
|
|
|
|
$
|
815,066
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
194,438
|
|
|
$
|
759
|
|
|
$
|
3,641
|
|
|
$
|
|
|
|
$
|
198,838
|
|
Home equity loans and lines
|
|
|
51,111
|
|
|
|
102
|
|
|
|
316
|
|
|
|
|
|
|
|
51,529
|
|
Commercial real estate
|
|
|
107,719
|
|
|
|
4,048
|
|
|
|
1,845
|
|
|
|
|
|
|
|
113,612
|
|
Construction and land
|
|
|
3,828
|
|
|
|
|
|
|
|
1,130
|
|
|
|
|
|
|
|
4,958
|
|
Multi-family residential
|
|
|
21,347
|
|
|
|
10
|
|
|
|
929
|
|
|
|
|
|
|
|
22,286
|
|
Commercial and industrial
|
|
|
7,570
|
|
|
|
|
|
|
|
2,276
|
|
|
|
|
|
|
|
9,846
|
|
Consumer
|
|
|
1,863
|
|
|
|
30
|
|
|
|
31
|
|
|
|
|
|
|
|
1,924
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total acquired loans
|
|
$
|
387,876
|
|
|
$
|
4,949
|
|
|
$
|
10,168
|
|
|
$
|
|
|
|
$
|
402,993
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
382,055
|
|
|
$
|
1,186
|
|
|
$
|
5,049
|
|
|
$
|
|
|
|
$
|
388,290
|
|
Home equity loans and lines
|
|
|
94,800
|
|
|
|
469
|
|
|
|
787
|
|
|
|
|
|
|
|
96,056
|
|
Commercial real estate
|
|
|
399,251
|
|
|
|
5,022
|
|
|
|
3,893
|
|
|
|
|
|
|
|
408,166
|
|
Construction and land
|
|
|
115,411
|
|
|
|
30
|
|
|
|
1,806
|
|
|
|
|
|
|
|
117,247
|
|
Multi-family residential
|
|
|
36,488
|
|
|
|
10
|
|
|
|
929
|
|
|
|
|
|
|
|
37,427
|
|
Commercial and industrial
|
|
|
119,882
|
|
|
|
|
|
|
|
4,581
|
|
|
|
|
|
|
|
124,463
|
|
Consumer
|
|
|
45,883
|
|
|
|
94
|
|
|
|
433
|
|
|
|
|
|
|
|
46,410
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
1,193,770
|
|
|
$
|
6,811
|
|
|
$
|
17,478
|
|
|
$
|
|
|
|
$
|
1,218,059
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
(dollars in thousands)
|
|
Pass
|
|
|
Special
Mention
|
|
|
Substandard
|
|
|
Doubtful
|
|
|
Total
|
|
Originated loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
183,863
|
|
|
$
|
439
|
|
|
$
|
1,578
|
|
|
$
|
|
|
|
$
|
185,880
|
|
Home equity loans and lines
|
|
|
39,736
|
|
|
|
394
|
|
|
|
121
|
|
|
|
|
|
|
|
40,251
|
|
Commercial real estate
|
|
|
282,963
|
|
|
|
988
|
|
|
|
2,086
|
|
|
|
|
|
|
|
286,037
|
|
Construction and land
|
|
|
107,901
|
|
|
|
|
|
|
|
1,106
|
|
|
|
|
|
|
|
109,007
|
|
Multi-family residential
|
|
|
14,962
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,962
|
|
Commercial and industrial
|
|
|
113,108
|
|
|
|
585
|
|
|
|
2,374
|
|
|
|
|
|
|
|
116,067
|
|
Consumer
|
|
|
45,133
|
|
|
|
38
|
|
|
|
470
|
|
|
|
|
|
|
|
45,641
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total originated loans
|
|
$
|
787,666
|
|
|
$
|
2,444
|
|
|
$
|
7,735
|
|
|
$
|
|
|
|
$
|
797,845
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
200,966
|
|
|
$
|
791
|
|
|
$
|
3,629
|
|
|
$
|
|
|
|
$
|
205,386
|
|
Home equity loans and lines
|
|
|
53,352
|
|
|
|
20
|
|
|
|
437
|
|
|
|
|
|
|
|
53,809
|
|
Commercial real estate
|
|
|
112,802
|
|
|
|
4,085
|
|
|
|
2,455
|
|
|
|
|
|
|
|
119,342
|
|
Construction and land
|
|
|
4,573
|
|
|
|
1,819
|
|
|
|
1,376
|
|
|
|
|
|
|
|
7,768
|
|
Multi-family residential
|
|
|
27,931
|
|
|
|
12
|
|
|
|
958
|
|
|
|
|
|
|
|
28,901
|
|
Commercial and industrial
|
|
|
7,071
|
|
|
|
1,191
|
|
|
|
779
|
|
|
|
|
|
|
|
9,041
|
|
Consumer
|
|
|
2,160
|
|
|
|
51
|
|
|
|
63
|
|
|
|
|
|
|
|
2,274
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total acquired loans
|
|
$
|
408,855
|
|
|
$
|
7,969
|
|
|
$
|
9,697
|
|
|
$
|
|
|
|
$
|
426,521
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
384,829
|
|
|
$
|
1,230
|
|
|
$
|
5,207
|
|
|
$
|
|
|
|
$
|
391,266
|
|
Home equity loans and lines
|
|
|
93,088
|
|
|
|
414
|
|
|
|
558
|
|
|
|
|
|
|
|
94,060
|
|
Commercial real estate
|
|
|
395,765
|
|
|
|
5,073
|
|
|
|
4,541
|
|
|
|
|
|
|
|
405,379
|
|
Construction and land
|
|
|
112,474
|
|
|
|
1,819
|
|
|
|
2,482
|
|
|
|
|
|
|
|
116,775
|
|
Multi-family residential
|
|
|
42,893
|
|
|
|
12
|
|
|
|
958
|
|
|
|
|
|
|
|
43,863
|
|
Commercial and industrial
|
|
|
120,179
|
|
|
|
1,776
|
|
|
|
3,153
|
|
|
|
|
|
|
|
125,108
|
|
Consumer
|
|
|
47,293
|
|
|
|
89
|
|
|
|
533
|
|
|
|
|
|
|
|
47,915
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
1,196,521
|
|
|
$
|
10,413
|
|
|
$
|
17,432
|
|
|
$
|
|
|
|
$
|
1,224,366
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The above classifications follow regulatory guidelines and can generally be described as follows:
|
|
|
Pass loans are of satisfactory quality.
|
|
|
|
Special mention loans have an existing weakness that could cause future impairment, including the deterioration of financial ratios, past due status, questionable management capabilities and possible reduction in the
collateral values.
|
|
|
|
Substandard loans have an existing specific and well-defined weakness that may include poor liquidity and deterioration of financial performance. Such loans may be past due and related deposit accounts experiencing
overdrafts. Immediate corrective action is necessary.
|
|
|
|
Doubtful loans have specific weaknesses that are severe enough to make collection or liquidation in full highly questionable and improbable.
|
In addition, residential loans are classified using an inter-agency regulatory methodology that incorporates the extent of delinquencies and loan-to-value
ratios. These classifications were the most current available as of the dates indicated and were generally updated within the quarter.
14
Age analysis of past due loans as of the dates indicated are as follows.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2016
|
|
(dollars in thousands)
|
|
30-59
Days
Past Due
|
|
|
60-89
Days
Past Due
|
|
|
Greater
Than 90
Days
Past Due
|
|
|
Total
Past Due
|
|
|
Current
Loans
|
|
|
Total
Loans
|
|
Originated loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
1,000
|
|
|
$
|
354
|
|
|
$
|
521
|
|
|
$
|
1,875
|
|
|
$
|
187,577
|
|
|
$
|
189,452
|
|
Home equity loans and lines
|
|
|
574
|
|
|
|
12
|
|
|
|
195
|
|
|
|
781
|
|
|
|
43,746
|
|
|
|
44,527
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
596
|
|
|
|
596
|
|
|
|
293,958
|
|
|
|
294,554
|
|
Construction and land
|
|
|
|
|
|
|
|
|
|
|
87
|
|
|
|
87
|
|
|
|
112,202
|
|
|
|
112,289
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,141
|
|
|
|
15,141
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
1,574
|
|
|
|
366
|
|
|
|
1,399
|
|
|
|
3,339
|
|
|
|
652,624
|
|
|
|
655,963
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
687
|
|
|
|
|
|
|
|
754
|
|
|
|
1,441
|
|
|
|
113,176
|
|
|
|
114,617
|
|
Consumer
|
|
|
398
|
|
|
|
41
|
|
|
|
196
|
|
|
|
635
|
|
|
|
43,851
|
|
|
|
44,486
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
1,085
|
|
|
|
41
|
|
|
|
950
|
|
|
|
2,076
|
|
|
|
157,027
|
|
|
|
159,103
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total originated loans
|
|
$
|
2,659
|
|
|
$
|
407
|
|
|
$
|
2,349
|
|
|
$
|
5,415
|
|
|
$
|
809,651
|
|
|
$
|
815,066
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
1,805
|
|
|
$
|
693
|
|
|
$
|
1,895
|
|
|
$
|
4,393
|
|
|
$
|
194,445
|
|
|
$
|
198,838
|
|
Home equity loans and lines
|
|
|
378
|
|
|
|
54
|
|
|
|
96
|
|
|
|
528
|
|
|
|
51,001
|
|
|
|
51,529
|
|
Commercial real estate
|
|
|
19
|
|
|
|
|
|
|
|
1,449
|
|
|
|
1,468
|
|
|
|
112,144
|
|
|
|
113,612
|
|
Construction and land
|
|
|
5
|
|
|
|
|
|
|
|
41
|
|
|
|
46
|
|
|
|
4,912
|
|
|
|
4,958
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
22,286
|
|
|
|
22,286
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
2,207
|
|
|
|
747
|
|
|
|
3,481
|
|
|
|
6,435
|
|
|
|
384,788
|
|
|
|
391,223
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
7
|
|
|
|
|
|
|
|
438
|
|
|
|
445
|
|
|
|
9,401
|
|
|
|
9,846
|
|
Consumer
|
|
|
10
|
|
|
|
15
|
|
|
|
9
|
|
|
|
34
|
|
|
|
1,890
|
|
|
|
1,924
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
17
|
|
|
|
15
|
|
|
|
447
|
|
|
|
479
|
|
|
|
11,291
|
|
|
|
11,770
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total acquired loans
|
|
$
|
2,224
|
|
|
$
|
762
|
|
|
$
|
3,928
|
|
|
$
|
6,914
|
|
|
$
|
396,079
|
|
|
$
|
402,993
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
2,805
|
|
|
$
|
1,047
|
|
|
$
|
2,416
|
|
|
$
|
6,268
|
|
|
$
|
382,022
|
|
|
$
|
388,290
|
|
Home equity loans and lines
|
|
|
952
|
|
|
|
66
|
|
|
|
291
|
|
|
|
1,309
|
|
|
|
94,747
|
|
|
|
96,056
|
|
Commercial real estate
|
|
|
19
|
|
|
|
|
|
|
|
2,045
|
|
|
|
2,064
|
|
|
|
406,102
|
|
|
|
408,166
|
|
Construction and land
|
|
|
5
|
|
|
|
|
|
|
|
128
|
|
|
|
133
|
|
|
|
117,114
|
|
|
|
117,247
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
37,427
|
|
|
|
37,427
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
3,781
|
|
|
|
1,113
|
|
|
|
4,880
|
|
|
|
9,774
|
|
|
|
1,037,412
|
|
|
|
1,047,186
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
694
|
|
|
|
|
|
|
|
1,192
|
|
|
|
1,886
|
|
|
|
122,577
|
|
|
|
124,463
|
|
Consumer
|
|
|
408
|
|
|
|
56
|
|
|
|
205
|
|
|
|
669
|
|
|
|
45,741
|
|
|
|
46,410
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
1,102
|
|
|
|
56
|
|
|
|
1,397
|
|
|
|
2,555
|
|
|
|
168,318
|
|
|
|
170,873
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
4,883
|
|
|
$
|
1,169
|
|
|
$
|
6,277
|
|
|
$
|
12,329
|
|
|
$
|
1,205,730
|
|
|
$
|
1,218,059
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
(dollars in thousands)
|
|
30-59
Days
Past Due
|
|
|
60-89
Days
Past Due
|
|
|
Greater
Than 90
Days
Past Due
|
|
|
Total
Past Due
|
|
|
Current
Loans
|
|
|
Total
Loans
|
|
Originated loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
2,174
|
|
|
$
|
435
|
|
|
$
|
890
|
|
|
$
|
3,499
|
|
|
$
|
182,381
|
|
|
$
|
185,880
|
|
Home equity loans and lines
|
|
|
87
|
|
|
|
|
|
|
|
121
|
|
|
|
208
|
|
|
|
40,043
|
|
|
|
40,251
|
|
Commercial real estate
|
|
|
438
|
|
|
|
|
|
|
|
602
|
|
|
|
1,040
|
|
|
|
284,997
|
|
|
|
286,037
|
|
Construction and land
|
|
|
117
|
|
|
|
|
|
|
|
87
|
|
|
|
204
|
|
|
|
108,803
|
|
|
|
109,007
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,962
|
|
|
|
14,962
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
2,816
|
|
|
|
435
|
|
|
|
1,700
|
|
|
|
4,951
|
|
|
|
631,186
|
|
|
|
636,137
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
411
|
|
|
|
15
|
|
|
|
707
|
|
|
|
1,133
|
|
|
|
114,934
|
|
|
|
116,067
|
|
Consumer
|
|
|
533
|
|
|
|
277
|
|
|
|
358
|
|
|
|
1,168
|
|
|
|
44,473
|
|
|
|
45,641
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
944
|
|
|
|
292
|
|
|
|
1,065
|
|
|
|
2,301
|
|
|
|
159,407
|
|
|
|
161,708
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total originated loans
|
|
$
|
3,760
|
|
|
$
|
727
|
|
|
$
|
2,765
|
|
|
$
|
7,252
|
|
|
$
|
790,593
|
|
|
$
|
797,845
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
1,976
|
|
|
$
|
885
|
|
|
$
|
2,582
|
|
|
$
|
5,443
|
|
|
$
|
199,943
|
|
|
$
|
205,386
|
|
Home equity loans and lines
|
|
|
327
|
|
|
|
40
|
|
|
|
317
|
|
|
|
684
|
|
|
|
53,125
|
|
|
|
53,809
|
|
Commercial real estate
|
|
|
140
|
|
|
|
6
|
|
|
|
1,441
|
|
|
|
1,587
|
|
|
|
117,755
|
|
|
|
119,342
|
|
Construction and land
|
|
|
592
|
|
|
|
7
|
|
|
|
48
|
|
|
|
647
|
|
|
|
7,121
|
|
|
|
7,768
|
|
Multi-family residential
|
|
|
|
|
|
|
14
|
|
|
|
12
|
|
|
|
26
|
|
|
|
28,875
|
|
|
|
28,901
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
3,035
|
|
|
|
952
|
|
|
|
4,400
|
|
|
|
8,387
|
|
|
|
406,819
|
|
|
|
415,206
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
14
|
|
|
|
7
|
|
|
|
429
|
|
|
|
450
|
|
|
|
8,591
|
|
|
|
9,041
|
|
Consumer
|
|
|
64
|
|
|
|
4
|
|
|
|
48
|
|
|
|
116
|
|
|
|
2,158
|
|
|
|
2,274
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
78
|
|
|
|
11
|
|
|
|
477
|
|
|
|
566
|
|
|
|
10,749
|
|
|
|
11,315
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total acquired loans
|
|
$
|
3,113
|
|
|
$
|
963
|
|
|
$
|
4,877
|
|
|
$
|
8,953
|
|
|
$
|
417,568
|
|
|
$
|
426,521
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
4,150
|
|
|
$
|
1,320
|
|
|
$
|
3,472
|
|
|
$
|
8,942
|
|
|
$
|
382,324
|
|
|
$
|
391,266
|
|
Home equity loans and lines
|
|
|
414
|
|
|
|
40
|
|
|
|
438
|
|
|
|
892
|
|
|
|
93,168
|
|
|
|
94,060
|
|
Commercial real estate
|
|
|
578
|
|
|
|
6
|
|
|
|
2,043
|
|
|
|
2,627
|
|
|
|
402,752
|
|
|
|
405,379
|
|
Construction and land
|
|
|
709
|
|
|
|
7
|
|
|
|
135
|
|
|
|
851
|
|
|
|
115,924
|
|
|
|
116,775
|
|
Multi-family residential
|
|
|
|
|
|
|
14
|
|
|
|
12
|
|
|
|
26
|
|
|
|
43,837
|
|
|
|
43,863
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
5,851
|
|
|
|
1,387
|
|
|
|
6,100
|
|
|
|
13,338
|
|
|
|
1,038,005
|
|
|
|
1,051,343
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
425
|
|
|
|
22
|
|
|
|
1,136
|
|
|
|
1,583
|
|
|
|
123,525
|
|
|
|
125,108
|
|
Consumer
|
|
|
597
|
|
|
|
281
|
|
|
|
406
|
|
|
|
1,284
|
|
|
|
46,631
|
|
|
|
47,915
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
1,022
|
|
|
|
303
|
|
|
|
1,542
|
|
|
|
2,867
|
|
|
|
170,156
|
|
|
|
173,023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
6,873
|
|
|
$
|
1,690
|
|
|
$
|
7,642
|
|
|
$
|
16,205
|
|
|
$
|
1,208,161
|
|
|
$
|
1,224,366
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding Acquired Loans with deteriorated credit quality, as of March 31, 2016 and December 31, 2015, the Company
did not have any loans greater than 90 days past due and accruing.
16
The following is a summary of information pertaining to Originated Loans which were deemed to be impaired loans
as of the dates indicated.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of Period Ended March 31, 2016
|
|
(dollars in thousands)
|
|
Recorded
Investment
|
|
|
Unpaid
Principal
Balance
|
|
|
Related
Allowance
|
|
|
Average
Recorded
Investment
|
|
|
Interest
Income
Recognized
|
|
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Home equity loans and lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and land
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
81
|
|
|
$
|
81
|
|
|
$
|
34
|
|
|
$
|
81
|
|
|
$
|
1
|
|
Home equity loans and lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
|
165
|
|
|
|
173
|
|
|
|
86
|
|
|
|
173
|
|
|
|
2
|
|
Construction and land
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
1,053
|
|
|
|
1,079
|
|
|
|
418
|
|
|
|
822
|
|
|
|
15
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
1,299
|
|
|
$
|
1,333
|
|
|
$
|
538
|
|
|
$
|
1,076
|
|
|
$
|
18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total impaired Originated Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
81
|
|
|
$
|
81
|
|
|
$
|
34
|
|
|
$
|
81
|
|
|
$
|
1
|
|
Home equity loans and lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
|
165
|
|
|
|
173
|
|
|
|
86
|
|
|
|
173
|
|
|
|
2
|
|
Construction and land
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
1,053
|
|
|
|
1,079
|
|
|
|
418
|
|
|
|
822
|
|
|
|
15
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
1,299
|
|
|
$
|
1,333
|
|
|
$
|
538
|
|
|
$
|
1,076
|
|
|
$
|
18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of Period Ended December 31, 2015
|
|
(dollars in thousands)
|
|
Recorded
Investment
|
|
|
Unpaid
Principal
Balance
|
|
|
Related
Allowance
|
|
|
Average
Recorded
Investment
|
|
|
Interest
Income
Recognized
|
|
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
72
|
|
|
$
|
|
|
Home equity loans and lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and land
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
213
|
|
|
|
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
285
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
78
|
|
|
$
|
78
|
|
|
$
|
34
|
|
|
$
|
6
|
|
|
$
|
5
|
|
Home equity loans and lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
|
181
|
|
|
|
181
|
|
|
|
86
|
|
|
|
461
|
|
|
|
11
|
|
Construction and land
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
707
|
|
|
|
707
|
|
|
|
33
|
|
|
|
729
|
|
|
|
39
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
966
|
|
|
$
|
966
|
|
|
$
|
153
|
|
|
$
|
1,196
|
|
|
$
|
55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total impaired Originated Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
78
|
|
|
$
|
78
|
|
|
$
|
34
|
|
|
$
|
78
|
|
|
$
|
5
|
|
Home equity loans and lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
|
181
|
|
|
|
181
|
|
|
|
86
|
|
|
|
461
|
|
|
|
11
|
|
Construction and land
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
707
|
|
|
|
707
|
|
|
|
33
|
|
|
|
942
|
|
|
|
39
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
966
|
|
|
$
|
966
|
|
|
$
|
153
|
|
|
$
|
1,481
|
|
|
$
|
55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A summary of information pertaining to nonaccrual loans as of dates indicated is as follows.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2016
|
|
|
December 31, 2015
|
|
(dollars in thousands)
|
|
Originated
|
|
|
Acquired
(1)
|
|
|
Total
|
|
|
Originated
|
|
|
Acquired
(1)
|
|
|
Total
|
|
Nonaccrual loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
734
|
|
|
$
|
2,578
|
|
|
$
|
3,312
|
|
|
$
|
928
|
|
|
$
|
2,649
|
|
|
$
|
3,577
|
|
Home equity loans and lines
|
|
|
471
|
|
|
|
289
|
|
|
|
760
|
|
|
|
121
|
|
|
|
412
|
|
|
|
533
|
|
Commercial real estate
|
|
|
1,638
|
|
|
|
1,866
|
|
|
|
3,504
|
|
|
|
1,671
|
|
|
|
2,526
|
|
|
|
4,197
|
|
Construction and land
|
|
|
87
|
|
|
|
81
|
|
|
|
168
|
|
|
|
87
|
|
|
|
121
|
|
|
|
208
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
763
|
|
|
|
763
|
|
Commercial and industrial
|
|
|
2,304
|
|
|
|
859
|
|
|
|
3,163
|
|
|
|
2,374
|
|
|
|
610
|
|
|
|
2,984
|
|
Consumer
|
|
|
401
|
|
|
|
41
|
|
|
|
442
|
|
|
|
470
|
|
|
|
81
|
|
|
|
551
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
5,635
|
|
|
$
|
5,714
|
|
|
$
|
11,349
|
|
|
$
|
5,651
|
|
|
$
|
7,162
|
|
|
$
|
12,813
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Nonaccrual acquired loans accounted for under ASC 310-30 totaled $4.2 million and $4.6 million as of March 31, 2016 and December 31, 2015, respectively.
|
As of March 31, 2016, the Company had no outstanding commitments to lend additional funds to any customer whose loan was classified as
impaired.
Troubled Debt Restructurings
During the
course of its lending operations, the Company may periodically grant concessions to its customers in an attempt to protect as much of its investment as possible and to minimize risk of loss. These concessions may include restructuring the terms of a
customer loan to alleviate the burden of the customers near-term cash requirements. The Company adopted the provisions of ASU No. 2011-02,
Receivables
(Topic 310):
A Creditors Determination of Whether a Restructuring is a
Troubled Debt Restructuring
, which provides clarification on the determination of whether loan restructurings are considered troubled debt restructurings (TDRs). In accordance with the ASU, in order to be considered a TDR, the
Company must conclude that the restructuring of a loan to a borrower who is experiencing financial difficulties constitutes a concession. The Company defines a concession as a modification of existing terms granted to a borrower for
economic or legal reasons related to the borrowers financial difficulties that the Company would otherwise not consider. The concession is either granted through an agreement with the customer or is imposed by a court or by a law. Concessions
include modifying original loan terms to reduce or defer cash payments required as part of the loan agreement, including but not limited to:
|
|
a reduction of the stated interest rate for the remaining original life of the debt,
|
|
|
an extension of the maturity date or dates at an interest rate lower than the current market rate for new debt with similar risk characteristics,
|
|
|
a reduction of the face amount or maturity amount of the debt, or
|
|
|
a reduction of accrued interest receivable on the debt.
|
In its determination of whether the customer is
experiencing financial difficulties, the Company considers numerous indicators, including, but not limited to:
|
|
whether the customer is currently in default on its existing loan, or is in an economic position where it is probable the customer will be in default on its loan in the foreseeable future without a modification,
|
18
|
|
whether the customer has declared or is in the process of declaring bankruptcy,
|
|
|
whether there is substantial doubt about the customers ability to continue as a going concern,
|
|
|
whether, based on its projections of the customers current capabilities, the Company believes the customers future cash flows will be insufficient to service the debt, including interest, in accordance with
the contractual terms of the existing agreement for the foreseeable future, and
|
|
|
whether, without modification, the customer cannot obtain sufficient funds from other sources at an effective interest rate equal to the current market rate for similar debt for a non-troubled debtor.
|
If the Company concludes that both a concession has been granted and the concession was granted to a customer experiencing financial difficulties, the Company
identifies the loan as a TDR. For purposes of the determination of an allowance for loan losses on TDRs, such loans are reviewed for specific impairment in accordance with the Companys allowance for loan loss methodology. If it is determined
that losses are probable on such TDRs, either because of delinquency or other credit quality indicators, the Company specifically allocates a portion of the allowance for loan losses to these loans.
Information about the Companys TDRs is presented in the following tables.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of March 31, 2016
|
|
(dollars in thousands)
|
|
Current
|
|
|
Past Due
Greater Than
30 Days
|
|
|
Nonaccrual
TDRs
|
|
|
Total
TDRs
|
|
Originated loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
280
|
|
|
$
|
|
|
|
$
|
212
|
|
|
$
|
492
|
|
Home equity loans and lines
|
|
|
367
|
|
|
|
|
|
|
|
287
|
|
|
|
654
|
|
Commercial real estate
|
|
|
106
|
|
|
|
|
|
|
|
1,042
|
|
|
|
1,148
|
|
Construction and land
|
|
|
30
|
|
|
|
|
|
|
|
87
|
|
|
|
117
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
783
|
|
|
|
|
|
|
|
1,628
|
|
|
|
2,411
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
1,911
|
|
|
|
1,911
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
205
|
|
|
|
205
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
|
|
|
|
|
|
|
|
2,116
|
|
|
|
2,116
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total originated loans
|
|
$
|
783
|
|
|
$
|
|
|
|
$
|
3,744
|
|
|
$
|
4,527
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
411
|
|
|
$
|
72
|
|
|
$
|
393
|
|
|
$
|
876
|
|
Home equity loans and lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
1,187
|
|
|
|
1,187
|
|
Construction and land
|
|
|
|
|
|
|
|
|
|
|
13
|
|
|
|
13
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
411
|
|
|
|
72
|
|
|
|
1,593
|
|
|
|
2,076
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total acquired loans
|
|
$
|
411
|
|
|
$
|
72
|
|
|
$
|
1,593
|
|
|
$
|
2,076
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
691
|
|
|
$
|
72
|
|
|
$
|
605
|
|
|
$
|
1,368
|
|
Home equity loans and lines
|
|
|
367
|
|
|
|
|
|
|
|
287
|
|
|
|
654
|
|
Commercial real estate
|
|
|
106
|
|
|
|
|
|
|
|
2,229
|
|
|
|
2,335
|
|
Construction and land
|
|
|
30
|
|
|
|
|
|
|
|
100
|
|
|
|
130
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
1,194
|
|
|
|
72
|
|
|
|
3,221
|
|
|
|
4,487
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
1,911
|
|
|
|
1,911
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
205
|
|
|
|
205
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
|
|
|
|
|
|
|
|
2,116
|
|
|
|
2,116
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
1,194
|
|
|
$
|
72
|
|
|
$
|
5,337
|
|
|
$
|
6,603
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2015
|
|
(dollars in thousands)
|
|
Current
|
|
|
Past Due
Greater Than
30 Days
|
|
|
Nonaccrual
TDRs
|
|
|
Total
TDRs
|
|
Originated loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
281
|
|
|
$
|
|
|
|
$
|
38
|
|
|
$
|
319
|
|
Home equity loans and lines
|
|
|
383
|
|
|
|
|
|
|
|
3
|
|
|
|
386
|
|
Commercial real estate
|
|
|
107
|
|
|
|
|
|
|
|
1,069
|
|
|
|
1,176
|
|
Construction and land
|
|
|
|
|
|
|
|
|
|
|
87
|
|
|
|
87
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
771
|
|
|
|
|
|
|
|
1,197
|
|
|
|
1,968
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
2,374
|
|
|
|
2,374
|
|
Consumer
|
|
|
27
|
|
|
|
|
|
|
|
142
|
|
|
|
169
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
27
|
|
|
|
|
|
|
|
2,516
|
|
|
|
2,543
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total originated loans
|
|
$
|
798
|
|
|
$
|
|
|
|
$
|
3,713
|
|
|
$
|
4,511
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
419
|
|
|
$
|
73
|
|
|
$
|
15
|
|
|
$
|
507
|
|
Home equity loans and lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
1,192
|
|
|
|
1,192
|
|
Construction and land
|
|
|
|
|
|
|
|
|
|
|
52
|
|
|
|
52
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
419
|
|
|
|
73
|
|
|
|
1,259
|
|
|
|
1,751
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total acquired loans
|
|
$
|
419
|
|
|
$
|
73
|
|
|
$
|
1,259
|
|
|
$
|
1,751
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
700
|
|
|
$
|
73
|
|
|
$
|
53
|
|
|
$
|
826
|
|
Home equity loans and lines
|
|
|
383
|
|
|
|
|
|
|
|
3
|
|
|
|
386
|
|
Commercial real estate
|
|
|
107
|
|
|
|
|
|
|
|
2,261
|
|
|
|
2,368
|
|
Construction and land
|
|
|
|
|
|
|
|
|
|
|
139
|
|
|
|
139
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
1,190
|
|
|
|
73
|
|
|
|
2,456
|
|
|
|
3,719
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
2,374
|
|
|
|
2,374
|
|
Consumer
|
|
|
27
|
|
|
|
|
|
|
|
142
|
|
|
|
169
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
27
|
|
|
|
|
|
|
|
2,516
|
|
|
|
2,543
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
1,217
|
|
|
$
|
73
|
|
|
$
|
4,972
|
|
|
$
|
6,262
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20
None of the above referenced TDRs defaulted subsequent to the restructuring through the date the financial
statements were issued. The Company restructured, as a TDR, loans totaling $1.8 million during the first quarter of 2016.
6. Fair Value Measurements and Disclosures
The Company utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value
disclosures. The Company groups assets and liabilities measured or disclosed at fair value in three levels as required by ASC 820,
Fair Value Measurements and Disclosures
. Under this guidance, fair value should be based on the assumptions
market participants would use when pricing the asset or liability and establishes a fair value hierarchy that prioritizes the inputs used to develop those assumptions and measure fair value. The hierarchy requires companies to maximize the use of
observable inputs and minimize the use of unobservable inputs. The three levels used to measure fair value are as follows:
|
|
Level 1 Quoted prices in active markets for identical assets or liabilities.
|
|
|
Level 2 Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and
liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
|
|
|
Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted
cash flow methodologies and similar techniques that use significant unobservable inputs.
|
An assets or liabilitys categorization
within the fair value hierarchy is based upon the lowest level that is significant to the fair value measurement. Management reviews and updates the fair value hierarchy classifications of the Companys assets and liabilities quarterly.
Recurring Basis
Investment Securities Available for Sale
Fair values of
investment securities available for sale are primarily measured using information from a first-party pricing service. This pricing service provides pricing information by utilizing pricing models supported with market data
information. Standard inputs include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities bids, offers and other reference data from market research publications. If quoted prices are available in
an active market, investment securities are classified as Level 1 measurements. If quoted prices are not available in an active market, fair values are estimated primarily by the use of pricing models. Level 2 investment
securities are primarily comprised of mortgage-backed securities issued by government agencies and U.S. government-sponsored enterprises. In certain cases, where there is limited or less transparent information provided by the Companys
first-party pricing service, fair value is estimated by the use of secondary pricing services or through the use of non-binding first-party broker quotes. Investment securities are classified within Level 3 when little or no market activity supports
the fair value.
Management primarily identifies investment securities which may have traded in illiquid or inactive markets by identifying instances of a
significant decrease in the volume and frequency of trades, relative to historical levels, as well as instances of a significant widening of the bid-ask spread in the brokered markets. Investment securities that are deemed to have been trading
in illiquid or inactive markets may require the use of significant
21
unobservable inputs. For example, management may use quoted prices for similar investment securities in the absence of a liquid and active market for the investment securities being
valued. As of March 31, 2016, management did not make adjustments to prices provided by the first-party pricing service as a result of illiquid or inactive markets.
The following tables present the balances of assets and liabilities measured for fair value on a recurring basis as of March 31, 2016 and
December 31, 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements Using
|
|
(dollars in thousands)
|
|
March 31, 2016
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
Available for sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. agency mortgage-backed
|
|
$
|
137,697
|
|
|
$
|
|
|
|
$
|
137,697
|
|
|
$
|
|
|
Non-U.S. agency mortgage-backed
|
|
|
5,821
|
|
|
|
|
|
|
|
5,821
|
|
|
|
|
|
Municipal bonds
|
|
|
22,721
|
|
|
|
|
|
|
|
22,721
|
|
|
|
|
|
U.S. government agency
|
|
|
12,294
|
|
|
|
|
|
|
|
12,294
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
178,533
|
|
|
$
|
|
|
|
$
|
178,533
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements Using
|
|
(dollars in thousands)
|
|
December 31, 2015
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
Available for sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. agency mortgage-backed
|
|
$
|
135,478
|
|
|
$
|
|
|
|
$
|
135,478
|
|
|
$
|
|
|
Non-U.S. agency mortgage-backed
|
|
|
6,065
|
|
|
|
|
|
|
|
6,065
|
|
|
|
|
|
Municipal bonds
|
|
|
22,933
|
|
|
|
|
|
|
|
22,933
|
|
|
|
|
|
U.S. government agency
|
|
|
12,286
|
|
|
|
|
|
|
|
12,286
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
176,762
|
|
|
$
|
|
|
|
$
|
176,762
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company did not record any liabilities at fair value for which measurement of the fair value was made on a recurring
basis.
Nonrecurring Basis
In accordance with the provisions of ASC 310,
Receivables
, the Company records loans considered impaired at fair value. A loan is considered impaired if
it is probable the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Fair value is measured at the fair value of the collateral for collateral-dependent loans. For non-collateral-dependent
loans, fair value is measured by present valuing expected future cash flows. Impaired loans are classified as Level 3 assets when measured using appraisals from external parties of the collateral less any prior liens and when there is no observable
market price. Repossessed assets are initially recorded at fair value less estimated costs to sell. The fair value of repossessed assets is based on property appraisals and an analysis of similar properties available. As such, the Company classifies
repossessed assets as Level 3 assets.
Acquired loans and the FDIC loss sharing receivable are measured on a nonrecurring basis using significant
unobservable inputs (Level 3).
22
The Company has segregated all financial assets that are measured at fair value on a nonrecurring basis into the
most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date in the table below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements Using
|
|
(dollars in thousands)
|
|
March 31, 2016
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired loans with deteriorated credit quality
|
|
$
|
17,272
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
17,272
|
|
Impaired loans, excluding acquired loans
|
|
|
760
|
|
|
|
|
|
|
|
|
|
|
|
760
|
|
Repossessed assets
|
|
|
2,379
|
|
|
|
|
|
|
|
|
|
|
|
2,379
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
20,411
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
20,411
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements Using
|
|
(dollars in thousands)
|
|
December 31, 2015
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired loans with deteriorated credit quality
|
|
$
|
19,859
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
19,859
|
|
Impaired loans, excluding acquired loans
|
|
|
813
|
|
|
|
|
|
|
|
|
|
|
|
813
|
|
Repossessed assets
|
|
|
3,128
|
|
|
|
|
|
|
|
|
|
|
|
3,128
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
23,800
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
23,800
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASC 820,
Fair Value Measurements and Disclosures
, requires the disclosure of each class of financial instruments for
which it is practicable to estimate. The fair value of a financial instrument is the current amount that would be exchanged between willing parties, other than in a forced liquidation. Fair value is best determined based upon quoted market prices.
However, in many instances, there are no quoted market prices for the Companys various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation
techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument.
ASC 820 excludes certain financial instruments and all non-financial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company.
Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial statements. These
estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.
Fair value estimates included herein are based on existing on- and off-balance-sheet financial instruments without attempting to estimate the value of
anticipated future business and the fair value of assets and liabilities that are not required to be recorded or disclosed at fair value like premises and equipment. In addition, the tax ramifications related to the realization of the unrealized
gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.
The following methods and
assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value:
The carrying
value of cash and cash equivalents and interest-bearing deposits in banks approximate their fair value.
23
The fair value for investment securities is determined from quoted market prices when available. If a quoted
market price is not available, fair value is estimated using first party pricing services or quoted market prices of securities with similar characteristics.
The carrying value of mortgage loans held for sale approximates their fair value.
The fair value of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with
similar credit ratings and for the same remaining maturity.
The cash surrender value of bank-owned life insurance (BOLI) approximates its
fair value.
The fair value of customer deposits, excluding certificates of deposit, is the amount payable on demand. The fair value of fixed-maturity
certificates of deposit is estimated by discounting the future cash flows using the rates currently offered for deposits of similar remaining maturities.
The fair value of short-term FHLB advances is the amount payable at maturity. The fair value of long-term FHLB advances is estimated by discounting the future
cash flows using the rates currently offered for advances of similar maturities.
The following table presents estimated fair values of the Companys
financial instruments as of the dates indicated.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements at March 31, 2016
|
|
(dollars in thousands)
|
|
Carrying
Amount
|
|
|
Total
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
Financial Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
17,960
|
|
|
$
|
17,960
|
|
|
$
|
17,960
|
|
|
$
|
|
|
|
$
|
|
|
Interest-bearing deposits in banks
|
|
|
4,654
|
|
|
|
4,654
|
|
|
|
4,654
|
|
|
|
|
|
|
|
|
|
Investment securities available for sale
|
|
|
178,533
|
|
|
|
178,533
|
|
|
|
|
|
|
|
178,533
|
|
|
|
|
|
Investment securities held to maturity
|
|
|
13,846
|
|
|
|
14,145
|
|
|
|
|
|
|
|
14,145
|
|
|
|
|
|
Mortgage loans held for sale
|
|
|
11,504
|
|
|
|
11,504
|
|
|
|
|
|
|
|
11,504
|
|
|
|
|
|
Loans, net
|
|
|
1,218,059
|
|
|
|
1,221,034
|
|
|
|
|
|
|
|
|
|
|
|
1,221,034
|
|
Cash surrender value of BOLI
|
|
|
19,788
|
|
|
|
19,788
|
|
|
|
19,788
|
|
|
|
|
|
|
|
|
|
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
$
|
1,243,699
|
|
|
$
|
1,244,461
|
|
|
$
|
|
|
|
$
|
1,244,461
|
|
|
$
|
|
|
Short-term FHLB advances
|
|
|
28,158
|
|
|
|
28,158
|
|
|
|
28,158
|
|
|
|
|
|
|
|
|
|
Long-term FHLB advances
|
|
|
84,853
|
|
|
|
85,395
|
|
|
|
|
|
|
|
85,395
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements at December 31, 2015
|
|
(dollars in thousands)
|
|
Carrying
Amount
|
|
|
Total
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
Financial Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
24,798
|
|
|
$
|
24,798
|
|
|
$
|
24,798
|
|
|
$
|
|
|
|
$
|
|
|
Interest-bearing deposits in banks
|
|
|
5,144
|
|
|
|
5,144
|
|
|
|
5,144
|
|
|
|
|
|
|
|
|
|
Investment securities available for sale
|
|
|
176,762
|
|
|
|
176,762
|
|
|
|
|
|
|
|
176,762
|
|
|
|
|
|
Investment securities held to maturity
|
|
|
13,927
|
|
|
|
14,121
|
|
|
|
|
|
|
|
14,121
|
|
|
|
|
|
Mortgage loans held for sale
|
|
|
5,651
|
|
|
|
5,651
|
|
|
|
|
|
|
|
5,651
|
|
|
|
|
|
Loans, net
|
|
|
1,214,818
|
|
|
|
1,216,370
|
|
|
|
|
|
|
|
|
|
|
|
1,216,370
|
|
Cash surrender value of BOLI
|
|
|
19,667
|
|
|
|
19,667
|
|
|
|
19,667
|
|
|
|
|
|
|
|
|
|
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
$
|
1,244,217
|
|
|
$
|
1,243,698
|
|
|
$
|
|
|
|
$
|
1,243,698
|
|
|
$
|
|
|
Short-term FHLB advances
|
|
|
39,939
|
|
|
|
39,939
|
|
|
|
39,939
|
|
|
|
|
|
|
|
|
|
Long-term FHLB advances
|
|
|
85,213
|
|
|
|
84,711
|
|
|
|
|
|
|
|
84,711
|
|
|
|
|
|
24
Item 2. Managements Discussion and Analysis of Financial Condition and
Results of Operations.
The purpose of this discussion and analysis is to focus on significant changes in the financial condition of Home Bancorp,
Inc. (the Company) and its wholly owned subsidiary, Home Bank, N. A. (the Bank), from December 31, 2015 through March 31, 2016 and on its results of operations for the three months ended March 31, 2016 and
March 31, 2015. This discussion and analysis is intended to highlight and supplement information presented elsewhere in this quarterly report on Form 10-Q, particularly the consolidated financial statements and related notes appearing in
Item 1.
Forward-Looking Statements
To the
extent that statements in this Form 10-Q relate to future plans, objectives, financial results or performance of the Company or Bank, these statements are deemed to be forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements, which are based on managements current information, estimates and assumptions and the current economic environment, are generally identified by the use of words such as plan,
believe, expect, intend, anticipate, estimate, project or similar expressions, or by future or conditional terms such as will, would, should,
could, may, likely, probably, or possibly. The Companys or the Banks actual strategies and results in future periods may differ materially from those currently expected due to
various risks and uncertainties. Factors that may cause actual results to differ materially from these forward-looking statements include, but are not limited to, the risk factors described under the heading Risk Factors in the
Companys Annual Report on Form 10-K filed with the Securities Exchange Commission (SEC) for the year ended December 31, 2015. The Company undertakes no obligation to update these forward-looking statements to reflect
events or circumstances that occur after the date on which such statements were made.
EXECUTIVE OVERVIEW
During the first quarter of 2016, the Company earned $3.3 million, an increase of $502,000, or 17.6%, compared to the first quarter of 2015. Diluted earnings
per share for the first quarter of 2016 were $0.47, an increase of $0.06, or 14.6%, compared to the first quarter of 2015. The three months ended March 31, 2016 included $398,000 of merger-related expenses net of taxes related to the
acquisition of Louisiana Bancorp, Inc. (Louisiana Bancorp). Excluding merger-related expenses, net income for the first quarter of 2016 increased 31.6% compared to the first quarter of 2015 (see the Non-GAAP Reconciliation on
page 26). Excluding merger-related expenses, diluted earnings per share for the first quarter of 2016 increased 29.3% compared to the first quarter of 2015.
Key components of the Companys performance during the three months ended March 31, 2016 include:
|
|
Assets totaled $1.5 billion as of March 31, 2016, down $7.8 million, or 0.5%, from December 31, 2015.
|
|
|
Investment securities totaled $192.4 million as of March 31, 2016, an increase of $1.7 million, or 0.9%, from December 31, 2015.
|
|
|
Loans as of March 31, 2016 were $1.2 billion, a decrease of $6.3 million, or 0.5%, from December 31, 2015. Growth in originated loans of 10.0% (on an annualized basis) was offset by declines in acquired loans.
|
|
|
Deposits as of March 31, 2016 were $1.2 billion, a decrease of $518,000, or 0.04%, from December 31, 2015. Core deposits (i.e., checking, savings, and money market accounts) totaled $972.3 million as of
March 31, 2016, an increase of $4.9 million, or 0.5%, from December 31, 2015.
|
25
|
|
Interest income increased $3.7 million, or 28.1%, in the first quarter of 2016, compared to the first quarter of 2015. Interest income increased primarily due to higher loan volume as a result of the Louisiana Bancorp
acquisition in the third quarter of 2015.
|
|
|
Interest expense increased $513,000, or 63.2%, in the first quarter of 2016 compared to the first quarter of 2015. Interest expense increased primarily due to a higher volume of interest-bearing liabilities as a result
of the Louisiana Bancorp acquisition.
|
|
|
The provision for loan losses totaled $850,000 for the first quarter of 2016, an increase of $312,000, or 57.9%, compared to the first quarter of 2015. Of the $850,000 in provision for the first quarter of 2016,
$461,000 was associated with one energy-related borrower. At March 31, 2016, the Companys ratio of the allowance for loan losses to total loans was 0.85%, compared to 0.90% at March 31, 2015. Excluding acquired loans, the ratio of
the allowance for loan losses to total loans was 1.20% at March 31, 2016, compared to 1.07% at March 31, 2015. The Company recorded virtually no net loan charge-offs during the first quarter of 2016, compared to net loan charge-offs of
$26,000 during the first three months of 2015.
|
|
|
Noninterest income for the first quarter of 2016 increased $489,000, or 23.5%, compared to the first quarter of 2015, due primarily to increases in other income and service fees and charges, which were partially offset
by a decrease in gains on the sale of mortgage loans.
|
|
|
Noninterest expense for the first quarter of 2016 increased $2.6 million, or 27.0%, compared to the first quarter of 2015. Noninterest expense includes merger-related expenses related to the acquisition of Louisiana
Bancorp of $613,000 for the three months ended March 31, 2016. Excluding merger-related expenses, noninterest expense increased $2.0 million, or 20.7%, for the first quarter of 2016 compared to the first quarter of 2015. Excluding
merger-related expenses, the increase in noninterest expense in the first quarter of 2016 compared to the first quarter of 2015 relates primarily to the growth of the Company due to the addition of Louisiana Bancorp branches and employees.
|
The discussion and analysis contains financial information prepared other than in accordance with generally accepted accounting principles
(GAAP). The Company uses these non-GAAP financial measures in their analysis of the Companys performance. Management believes that the non-GAAP information provides useful data in understanding the Companys operations and in
comparing the Companys results of operation to peers. This non-GAAP information should be considered in addition to the Companys financial information prepared in accordance with GAAP, and is not a substitute for, or superior to, GAAP
results. Reconciliation of GAAP to non-GAAP disclosures is included in the table below.
Non-GAAP Reconciliation
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
(dollars in thousands)
|
|
March 31, 2016
|
|
|
March 31, 2015
|
|
Reported noninterest expense
|
|
$
|
12,341
|
|
|
$
|
9,719
|
|
Less: Merger-related expenses
|
|
|
613
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP noninterest expense
|
|
$
|
11,728
|
|
|
$
|
9,719
|
|
|
|
|
|
|
|
|
|
|
Reported net income
|
|
$
|
3,350
|
|
|
$
|
2,848
|
|
Add: Merger-related expenses (after tax)
|
|
|
398
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income
|
|
$
|
3,748
|
|
|
$
|
2,848
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS
|
|
$
|
0.47
|
|
|
$
|
0.41
|
|
Add: Merger-related expenses
|
|
|
0.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted EPS
|
|
$
|
0.53
|
|
|
$
|
0.41
|
|
|
|
|
|
|
|
|
|
|
26
FINANCIAL CONDITION
Loans, Asset Quality and Allowance for Loan Losses
Loans
Loans outstanding as of March 31, 2016 were $1.2 billion, a decrease of $6.3 million, or 0.5%, from
December 31, 2015. Growth in originated loans of 10% (on an annualized basis) was offset by declines in acquired loans. Loan decreases during the first quarter of 2016 related primarily to multi-family residential (down $6.4 million),
residential mortgages (down $3.0 million) and consumer loans (down $1.5 million). Commercial real estate and home equity loans increased by $2.8 million and $2.0 million, respectively, during the quarter.
The following table summarizes the composition of the Companys loan portfolio as of the dates indicated.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
Increase/(Decrease)
|
|
(dollars in thousands)
|
|
2016
|
|
|
2015
|
|
|
Amount
|
|
|
Percent
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
388,290
|
|
|
$
|
391,266
|
|
|
$
|
(2,976
|
)
|
|
|
(0.8
|
)%
|
Home equity loans and lines
|
|
|
96,056
|
|
|
|
94,060
|
|
|
|
1,996
|
|
|
|
2.1
|
|
Commercial real estate
|
|
|
408,166
|
|
|
|
405,379
|
|
|
|
2,787
|
|
|
|
0.7
|
|
Construction and land
|
|
|
117,247
|
|
|
|
116,775
|
|
|
|
472
|
|
|
|
0.4
|
|
Multi-family residential
|
|
|
37,427
|
|
|
|
43,863
|
|
|
|
(6,436
|
)
|
|
|
(14.7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
1,047,186
|
|
|
|
1,051,343
|
|
|
|
(4,157
|
)
|
|
|
(0.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
124,463
|
|
|
|
125,108
|
|
|
|
(645
|
)
|
|
|
(0.5
|
)
|
Consumer
|
|
|
46,410
|
|
|
|
47,915
|
|
|
|
(1,505
|
)
|
|
|
(3.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
170,873
|
|
|
|
173,023
|
|
|
|
(2,150
|
)
|
|
|
(1.2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
1,218,059
|
|
|
$
|
1,224,366
|
|
|
$
|
(6,307
|
)
|
|
|
(0.5
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The balance of loans to companies in the energy sector totaled $36.8 million, or 3.0% of outstanding loans, at March 31,
2016. We also had unfunded loan commitments to energy companies amounting to $8.9 million at such date. At March 31, 2016, 91% of the balance of our energy-related loans were performing in accordance with their original loan agreements. Of the
remaining 9%, $2.1 million has been restructured and are paying in accordance with the restructured terms. The Company holds no shared national credits.
The following table illustrates the composition of the Companys energy-related loans at March 31, 2016.
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
Total
|
|
|
Percent
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
$
|
16,027
|
|
|
|
44
|
%
|
Construction and land
|
|
|
393
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
16,420
|
|
|
|
45
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial:
|
|
|
|
|
|
|
|
|
Equipment
|
|
|
6,288
|
|
|
|
17
|
|
Marine vessels
|
|
|
6,066
|
|
|
|
16
|
|
Accounts receivable
|
|
|
5,050
|
|
|
|
14
|
|
Unsecured
|
|
|
1,707
|
|
|
|
5
|
|
Other
|
|
|
1,238
|
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
Total commercial and industrial loans
|
|
|
20,349
|
|
|
|
55
|
|
|
|
|
|
|
|
|
|
|
Total energy-related loans
|
|
$
|
36,769
|
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
27
Asset Quality
One of managements key objectives has been, and continues to be, maintaining a
high level of asset quality. In addition to maintaining credit standards for new loan originations, we proactively monitor loans and collection and workout processes of delinquent or problem loans. When a borrower fails to make a scheduled payment,
we attempt to cure the deficiency by making personal contact with the borrower. Initial contacts are generally made within 10 days after the date payment is due. In most cases, deficiencies are promptly resolved. If the delinquency continues, late
charges are assessed and additional efforts are made to collect the deficiency. All loans which are designated as special mention, classified or which are delinquent 90 days or more are reported to the Board of Directors of the Bank
monthly. For loans where the collection of principal or interest payments is doubtful, the accrual of interest income ceases. It is our policy, with certain limited exceptions, to discontinue accruing interest and reverse any interest accrued on any
loan which is 90 days or more past due. On occasion, this action may be taken earlier if the financial condition of the borrower raises significant concern with regard to their ability to service the debt in accordance with the terms of the loan
agreement. Interest income is not accrued on these loans until the borrowers financial condition and payment record demonstrate an ability to service the debt.
Repossessed assets which are acquired as a result of foreclosure are classified as repossessed assets until sold. First party property valuations are obtained
at the time the asset is repossessed and periodically until the property is liquidated. Repossessed assets are recorded at the lesser of the balance of the loan or fair value less estimated selling costs, at the date acquired or upon receiving new
property valuations. Costs associated with acquiring and improving a foreclosed property are usually capitalized to the extent that the carrying value does not exceed fair value less estimated selling costs. Holding costs are charged to expense.
Gains and losses on the sale of repossessed assets are charged to operations, as incurred.
An impaired loan generally is one for which it is probable,
based on current information, that the lender will not collect all the amounts due under the contractual terms of the loan. Large groups of smaller balance, homogeneous loans are collectively evaluated for impairment. Loans collectively evaluated
for impairment include smaller balance commercial loans, residential real estate loans and consumer loans. These loans are evaluated as a group because they have similar characteristics and performance experience. Larger (i.e., loans with balances
of $100,000 or greater) commercial real estate loans, multi-family residential loans, construction and land loans and commercial and industrial loans are individually evaluated for impairment. First party property valuations are obtained at the time
of origination for real estate secured loans. When a determination is made that a loan has deteriorated to the point of becoming a problem loan, updated valuations may be ordered to help determine if there is impairment, which may lead to a
recommendation for partial charge off or appropriate allowance allocation. Property valuations are ordered through, and are reviewed by, an appraisal officer. The Company typically orders an as is valuation for collateral property if the
loan is in a criticized loan classification. The Board of Directors is provided with monthly reports on impaired loans. As of March 31, 2016 and December 31, 2015, loans individually evaluated for impairment, excluding acquired loans,
amounted to $1.3 million and $966,000, respectively. As of March 31, 2016 and December 31, 2015, acquired impaired loans, loans considered to have deteriorated credit quality at the time of acquisition, amounted to $17.4 million and $20.0
million, respectively. As of March 31, 2016 and December 31, 2015, substandard loans, excluding acquired loans, amounted to $7.3 million and $7.7 million, respectively. The amount of the allowance for loan losses allocated to impaired or
substandard loans originated by Home Bank totaled $538,000 as of March 31, 2016 and $153,000 as of December 31, 2015. The amount of allowance for loan losses allocated to acquired loans totaled $580,000 and $373,000, respectively, at such
dates. There were no assets classified as doubtful or loss as of March 31, 2016 or December 31, 2015.
Federal regulations and our policies
require that we utilize an internal asset classification system as a means of reporting problem and potential problem assets. We have incorporated an internal asset classification system, substantially consistent with Federal banking regulations, as
a part of our credit monitoring system. Federal banking regulations set forth a classification scheme for problem and potential problem assets as substandard, doubtful or loss assets. An asset is considered
substandard if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard assets include those characterized by the distinct
possibility that the insured institution will sustain some loss if the deficiencies are not corrected. Assets classified as doubtful have all of the weaknesses inherent in those classified substandard with
the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Assets classified as
loss are those considered uncollectible and of such little value that their continuance as assets without the establishment of a specific loss reserve is not warranted.
28
A banks determination as to the classification of its assets and the amount of its valuation allowances is
subject to review by Federal bank regulators which can order the establishment of additional general or specific loss allowances. The Federal banking agencies have adopted an interagency policy statement on the allowance for loan and lease losses.
The policy statement provides guidance for financial institutions on both the responsibilities of management for the assessment and establishment of allowances and guidance for banking agency examiners to use in determining the adequacy of general
valuation guidelines. Generally, the policy statement recommends that institutions have effective systems and controls to identify, monitor and address asset quality problems; that management analyzes all significant factors that affect the
collectability of the portfolio in a reasonable manner; and that management establishes acceptable allowance evaluation processes that meet the objectives set forth in the policy statement. Our management believes that, based on information
currently available, our allowance for loan losses is maintained at a level which covers all known and inherent losses that are both probable and reasonably estimable as of each reporting date. However, actual losses are dependent upon future events
and, as such, further additions to the level of allowance for loan losses may become necessary.
Real estate, or other collateral, which is acquired as a
result of foreclosure is classified as a foreclosed asset until sold. Foreclosed assets are recorded at the lesser of the balance of the loan or fair value less estimated selling costs, at the date acquired or upon receiving new property valuations.
Holding costs are charged to expense. Gains and losses on the sale of real estate owned are charged to operations, as incurred.
The following table sets
forth the composition of the Companys nonperforming assets (NPAs) and performing troubled debt restructurings as of the dates indicated.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2016
|
|
|
December 31, 2015
|
|
(dollars in thousands)
|
|
Originated
|
|
|
Acquired
(1)
|
|
|
Total
|
|
|
Originated
|
|
|
Acquired
(1)
|
|
|
Total
|
|
Nonaccrual loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family first mortgage
|
|
$
|
734
|
|
|
$
|
2,578
|
|
|
$
|
3,312
|
|
|
$
|
928
|
|
|
$
|
2,649
|
|
|
$
|
3,577
|
|
Home equity loans and lines
|
|
|
471
|
|
|
|
289
|
|
|
|
760
|
|
|
|
121
|
|
|
|
412
|
|
|
|
533
|
|
Commercial real estate
|
|
|
1,638
|
|
|
|
1,866
|
|
|
|
3,504
|
|
|
|
1,671
|
|
|
|
2,526
|
|
|
|
4,197
|
|
Construction and land
|
|
|
87
|
|
|
|
81
|
|
|
|
168
|
|
|
|
87
|
|
|
|
121
|
|
|
|
208
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
763
|
|
|
|
763
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
2,304
|
|
|
|
859
|
|
|
|
3,163
|
|
|
|
2,374
|
|
|
|
610
|
|
|
|
2,984
|
|
Consumer
|
|
|
401
|
|
|
|
41
|
|
|
|
442
|
|
|
|
470
|
|
|
|
81
|
|
|
|
551
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonaccrual loans
|
|
|
5,635
|
|
|
|
5,714
|
|
|
|
11,349
|
|
|
|
5,651
|
|
|
|
7,162
|
|
|
|
12,813
|
|
Accruing loans 90 days or more past due
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming loans
|
|
|
5,635
|
|
|
|
5,714
|
|
|
|
11,349
|
|
|
|
5,651
|
|
|
|
7,162
|
|
|
|
12,813
|
|
Foreclosed assets
|
|
|
180
|
|
|
|
2,199
|
|
|
|
2,379
|
|
|
|
116
|
|
|
|
3,012
|
|
|
|
3,128
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming assets
|
|
|
5,815
|
|
|
|
7,913
|
|
|
|
13,728
|
|
|
|
5,767
|
|
|
|
10,174
|
|
|
|
15,941
|
|
Performing troubled debt restructurings
|
|
|
783
|
|
|
|
483
|
|
|
|
1,266
|
|
|
|
798
|
|
|
|
492
|
|
|
|
1,290
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming assets and troubled debt restructurings
|
|
$
|
6,598
|
|
|
$
|
8,396
|
|
|
$
|
14,994
|
|
|
$
|
6,565
|
|
|
$
|
10,666
|
|
|
$
|
17,231
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans to total loans
|
|
|
|
|
|
|
|
|
|
|
0.93
|
%
|
|
|
|
|
|
|
|
|
|
|
1.05
|
%
|
Nonperforming loans to total assets
|
|
|
|
|
|
|
|
|
|
|
0.73
|
%
|
|
|
|
|
|
|
|
|
|
|
0.83
|
%
|
Nonperforming assets to total assets
|
|
|
|
|
|
|
|
|
|
|
0.89
|
%
|
|
|
|
|
|
|
|
|
|
|
1.03
|
%
|
(1)
|
Includes $1.5 million and $2.6 million in acquired loans accounted for under ASC 310-30 at March 31, 2016 and December 31, 2015, respectively. Excluding acquired loans and assets, ratios for nonperforming
loans to total loans, nonperforming loans to total assets and nonperforming assets to total assets were 0.69%, 0.49% and 0.51%, respectively, at March 31, 2016.
|
The Company recorded virtually no net loan charge-offs during the first quarter of 2016, compared to net loan charge-offs of $26,000 during the first three
months of 2015.
29
Allowance for Loan Losses
The allowance for loan losses is established through provisions for loan
losses. The Company maintains the allowance at a level believed, to the best of managements knowledge, to cover all known and inherent losses in the portfolio that are both probable and reasonable to estimate at each reporting date. Management
reviews the allowance for loan losses at least quarterly in order to identify those inherent losses and to assess the overall collection probability for the loan portfolio. The evaluation process includes, among other things, an analysis of
delinquency trends, nonperforming loan trends, the level of charge-offs and recoveries, prior loss experience, total loans outstanding, the volume of loan originations, the type, size and geographic concentration of loans, the value of collateral
securing loans, the borrowers ability to repay and repayment performance, the number of loans requiring heightened management oversight, economic conditions and industry experience. Based on this evaluation, management assigns risk ratings to
segments of the loan portfolio. Such risk ratings are periodically reviewed by management and revised as deemed appropriate. These efforts are supplemented by reviews and validations performed by independent loan reviewers. The results of the
reviews are reported to the Audit Committee of the Board of Directors. The establishment of the allowance for loan losses is significantly affected by management judgment. There is likelihood that different amounts would be reported under different
conditions or assumptions. Federal regulatory agencies, as an integral part of their examination process, periodically review our allowance for loan losses. Such agencies may require management to make additional provisions for estimated loan losses
based upon judgments different from those of management.
With respect to acquired loans, the Company follows the reserve standard set forth in ASC 310,
Receivables
. At acquisition, the Company reviews each loan to determine whether there is evidence of deterioration in credit quality since origination and if it is probable that the Company will be unable to collect all amounts due according
to the loans contractual terms. The Company considers expected prepayments and estimates the amount and timing of undiscounted expected principal, interest and other cash flows for each loan pool meeting the criteria above, and determines the
excess of the loan pools scheduled contractual principal and interest payments in excess of cash flows expected at acquisition as an amount that should not be accreted (nonaccretable difference). The remaining amount, representing the excess
of the pools cash flows expected to be collected over the fair value, is accreted into interest income over the remaining life of the pool (accretable yield). The Company records a discount on these loans at acquisition to record them at their
estimated fair values. As a result, acquired loans subject to ASC 310 are excluded from the calculation of the allowance for loan losses as of the acquisition date. See Note 5 to the Unaudited Consolidated Financial Statements for additional
information concerning our allowance for acquired loans.
Acquired loans were recorded at their acquisition date fair value, which was based on expected
cash flows and included an estimation of expected future loan losses. Under current accounting principles, additional losses after the acquisition date are reflected as a provision to the allowance for loan losses. As of March 31, 2016 and
December 31, 2015, $128,000 of our allowance for loan losses was allocated to acquired loans with deteriorated credit quality.
We will continue to
monitor and modify our allowance for loan losses as conditions warrant. No assurance can be given that our level of allowance for loan losses will cover all of the inherent losses on our loans or that future adjustments to the allowance for loan
losses will not be necessary if economic and other conditions differ substantially from the conditions used by management to determine the current level of the allowance for loan losses.
The following table presents the activity in the allowance for loan losses during the first three months of 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
Originated
|
|
|
Acquired
|
|
|
Total
|
|
Balance, December 31, 2015
|
|
$
|
9,174
|
|
|
$
|
373
|
|
|
$
|
9,547
|
|
Provision charged to operations
|
|
|
737
|
|
|
|
113
|
|
|
|
850
|
|
Loans charged off
|
|
|
(106
|
)
|
|
|
|
|
|
|
(106
|
)
|
Recoveries on charged off loans
|
|
|
12
|
|
|
|
94
|
|
|
|
106
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, March 31, 2016
|
|
$
|
9,817
|
|
|
$
|
580
|
|
|
$
|
10,397
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30
At March 31, 2016, the Companys ratio of allowance for loan losses to total loans was 0.85%, compared
to 0.78% and 0.90% at December 31, 2015 and March 31, 2015, respectively. Excluding acquired loans, the ratio of allowance for loan losses to total loans was 1.20% at March 31, 2016, compared to 1.15% and 1.07% at December 31,
2015 and March 31, 2015, respectively.
The allowance for loan losses to loans ratio directly attributable to energy loans totaled 3.08% at
March 31, 2016. Over the past 15 months, the Company has increased its overall allowance for loan losses to loans ratio on originated loans from 1.04% at December 31, 2014 to 1.20% at March 31, 2016 due in part to our assessment of
the potential direct and indirect impact of low energy prices.
Investment Securities
The Companys investment securities portfolio totaled $192.4 million as of March 31, 2016, an increase of $1.7 million, or 0.9%, from
December 31, 2015. As of March 31, 2016, the Company had a net unrealized gain on its available for sale investment securities portfolio of $2.7 million, compared to $1.3 million as of December 31, 2015. The investment securities
portfolio had a modified duration of 3.0 and 3.3 years at March 31, 2016 and December 31, 2015, respectively.
The following table summarizes
activity in the Companys investment securities portfolio during the first three months of 2016.
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
Available for Sale
|
|
|
Held to Maturity
|
|
Balance, December 31, 2015
|
|
$
|
176,762
|
|
|
$
|
13,927
|
|
Purchases
|
|
|
7,969
|
|
|
|
|
|
Sales
|
|
|
|
|
|
|
|
|
Principal payments and calls
|
|
|
(7,306
|
)
|
|
|
|
|
Accretion of discounts and amortization of premiums, net
|
|
|
(289
|
)
|
|
|
(81
|
)
|
Increase in market value
|
|
|
1,397
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, March 31, 2016
|
|
$
|
178,533
|
|
|
$
|
13,846
|
|
|
|
|
|
|
|
|
|
|
Funding Sources
Deposits
Deposits totaled $1.2 billion as of March 31, 2016 and December 31, 2015. Core deposits totaled $972.3 million as of
March 31, 2016, an increase of $4.9 million, or 0.5%, compared to December 31, 2015.
The following table sets forth the composition of the
Companys deposits at the dates indicated.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
Increase (Decrease)
|
|
(dollars in thousands)
|
|
2016
|
|
|
2015
|
|
|
Amount
|
|
|
Percent
|
|
Demand deposit
|
|
$
|
292,411
|
|
|
$
|
296,617
|
|
|
$
|
(4,206
|
)
|
|
|
(1.4
|
)%
|
Savings
|
|
|
111,265
|
|
|
|
109,393
|
|
|
|
1,872
|
|
|
|
1.7
|
|
Money market
|
|
|
275,290
|
|
|
|
293,637
|
|
|
|
(18,347
|
)
|
|
|
(6.2
|
)
|
NOW
|
|
|
293,327
|
|
|
|
267,707
|
|
|
|
25,620
|
|
|
|
9.6
|
|
Certificates of deposit
|
|
|
271,406
|
|
|
|
276,863
|
|
|
|
(5,457
|
)
|
|
|
(2.0
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits
|
|
$
|
1,243,699
|
|
|
$
|
1,244,217
|
|
|
$
|
(518
|
)
|
|
|
0.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal Home Loan Bank Advances
Short-term FHLB advances decreased $11.8 million, or 29.5% from $40.0 million as
of December 31, 2015 to $28.2 million as of March 31, 2016. Long-term FHLB advances totaled $84.9 million as of March 31, 2016, a decrease of $360,000, or 0.4% compared December 31, 2015.
Shareholders Equity
Shareholders equity increased $4.1 million, or 2.5%, from $165.0 million as of December 31, 2015 to $169.2
million as of March 31, 2016.
31
As of March 31, 2016, the Company and the Bank had regulatory capital that were well in excess of regulatory
requirements. The following table details the Companys actual levels and current regulatory capital requirements as of March 31, 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual
|
|
|
Required for Capital
Adequacy Purposes
|
|
|
To Be Well Capitalized
Under Prompt
Corrective Action
Provisions
|
|
(dollars in thousands)
|
|
Amount
|
|
|
Ratio
|
|
|
Amount
|
|
|
Ratio
|
|
|
Amount
|
|
|
Ratio
|
|
Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 risk-based capital
|
|
$
|
153,864
|
|
|
|
13.32
|
%
|
|
$
|
69,333
|
|
|
|
6.00
|
%
|
|
|
N/A
|
|
|
|
N/A
|
|
Total risk-based capital
|
|
|
164,261
|
|
|
|
14.22
|
|
|
|
92,444
|
|
|
|
8.00
|
|
|
|
N/A
|
|
|
|
N/A
|
|
Tier 1 leverage capital
|
|
|
153,864
|
|
|
|
10.05
|
|
|
|
46,222
|
|
|
|
4.00
|
|
|
|
N/A
|
|
|
|
N/A
|
|
Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity Tier 1 capital (to risk-weighted assets)
|
|
$
|
137,219
|
|
|
|
11.89
|
%
|
|
$
|
51,951
|
|
|
|
4.50
|
%
|
|
$
|
75,040
|
|
|
|
6.50
|
%
|
Tier 1 risk-based capital
|
|
|
137,219
|
|
|
|
11.89
|
|
|
|
69,267
|
|
|
|
6.00
|
|
|
|
92,357
|
|
|
|
8.00
|
|
Total risk-based capital
|
|
|
147,616
|
|
|
|
12.79
|
|
|
|
92,357
|
|
|
|
8.00
|
|
|
|
115,446
|
|
|
|
10.00
|
|
Tier 1 leverage capital
|
|
|
137,219
|
|
|
|
8.97
|
|
|
|
46,178
|
|
|
|
4.00
|
|
|
|
57,723
|
|
|
|
5.00
|
|
LIQUIDITY AND ASSET/LIABILITY MANAGEMENT
Liquidity Management
Liquidity management
encompasses our ability to ensure that funds are available to meet the cash flow requirements of depositors and borrowers, while also ensuring adequate cash flow exists to meet the Companys needs, including operating, strategic and capital.
The Company develops its liquidity management strategies as part of its overall asset/liability management process. Our primary sources of funds are from deposits, amortization of loans, loan prepayments and the maturity of loans, investment
securities and other investments, and other funds provided from operations. While scheduled payments from the amortization of loans and investment securities and maturing investment securities are relatively predictable sources of funds, deposit
flows and loan prepayments can be greatly influenced by general interest rates, economic conditions and competition. The Company also maintains excess funds in short-term, interest-bearing assets that provide additional liquidity. As of
March 31, 2016, cash and cash equivalents totaled $18.0 million. At such date, investment securities available for sale totaled $178.5 million.
The
Company uses its liquidity to fund existing and future loan commitments, to fund maturing certificates of deposit and demand deposit withdrawals, to invest in other interest-earning assets, and to meet operating expenses. As of March 31, 2016,
certificates of deposit maturing within the next 12 months totaled $136.3 million. Based upon historical experience, the Company anticipates that a significant portion of the maturing certificates of deposit will be redeposited with us. For the
three months ended March 31, 2016, the average balance of outstanding FHLB advances was $126.0 million. As of March 31, 2016, the Company had $113.0 million in total outstanding FHLB advances and had $489.6 million in additional FHLB
advances available.
In addition to cash flow from loan and securities payments and prepayments as well as from sales of securities available for sale,
the Company has significant borrowing capacity available to fund liquidity needs. In recent years, the Company has utilized borrowings as a cost efficient addition to deposits as a source of funds. Borrowings consist of advances from the FHLB of
Dallas, of which the Company is a member. Under terms of the collateral agreement with the FHLB, the Company pledges residential mortgage loans and investment securities as well as the Companys stock in the FHLB as collateral for such
advances.
Asset/Liability Management
The
objective of asset/liability management is to implement strategies for the funding and deployment of the Companys financial resources that are expected to maximize soundness and profitability over time at acceptable levels of risk. Interest
rate sensitivity is the potential impact of changing rate environments on both net interest income and cash flows. The Company measures its interest rate sensitivity over the near term primarily by running net interest income simulations.
32
Our interest rate sensitivity also is monitored by management through the use of a model which generates
estimates of the change in its net interest income over a range of interest rate scenarios. Based on the Companys interest rate risk model, the table below sets forth the results of immediate and sustained changes in interest rates as of
March 31, 2016.
|
|
|
|
|
Shift in Interest Rates (in bps)
|
|
% Change in Projected
Net Interest Income
|
|
+300
|
|
|
0.9
|
%
|
+200
|
|
|
0.9
|
|
+100
|
|
|
0.6
|
|
The actual impact of changes in interest rates will depend on many factors. These factors include the Companys
ability to achieve expected growth in earning assets and maintain a desired mix of earning assets and interest-bearing liabilities, the actual timing of asset and liability repricings, the magnitude of interest rate changes and corresponding
movement in interest rate spreads, and the level of success of asset/liability management strategies.
Off-Balance Sheet
Activities
To meet the financing needs of its customers, the Bank issues financial instruments which represent conditional
obligations that are not recognized, wholly or in part, in the statements of financial condition. These financial instruments include commitments to extend credit and standby letters of credit. Such instruments expose the Company to varying degrees
of credit and interest rate risk in much the same way as funded loans. The same credit policies are used in these commitments as for on-balance sheet instruments. The Companys exposure to credit losses from these financial instruments is
represented by their contractual amounts.
The following table summarizes our outstanding commitments to originate loans and to advance additional amounts
pursuant to outstanding letters of credit, lines of credit and undisbursed construction loans as of March 31, 2016 and December 31, 2015.
|
|
|
|
|
|
|
|
|
|
|
Contract Amount
|
|
|
|
March 31,
|
|
|
December 31,
|
|
(dollars in thousands)
|
|
2016
|
|
|
2015
|
|
Standby letters of credit
|
|
$
|
4,711
|
|
|
$
|
3,764
|
|
Available portion of lines of credit
|
|
|
144,446
|
|
|
|
127,393
|
|
Undisbursed portion of loans in process
|
|
|
64,027
|
|
|
|
73,699
|
|
Commitments to originate loans
|
|
|
91,272
|
|
|
|
89,653
|
|
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition
established in the contract. 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 be drawn upon, the total commitment amounts generally
represent future cash requirements.
Unfunded commitments under commercial lines of credit, revolving credit lines and overdraft protection agreements are
commitments for possible future extensions of credit to existing customers. These lines of credit usually do not contain a specified maturity date and may not be drawn upon to the total extent to which the Company is committed.
The Company is subject to certain claims and litigation arising in the ordinary course of business. In the opinion of management, after consultation with
legal counsel, the ultimate disposition of these matters is not expected to have a material effect on the financial condition or results of operations of the Company.
33
RESULTS OF OPERATIONS
During the first quarter of 2016, the Company earned $3.4 million, an increase of $502,000, or 17.6%, compared to the first quarter of 2015. The first quarter
of 2016 included $613,000 of pre-tax merger-related expenses related to the acquisition of Louisiana Bancorp. Excluding merger-related expenses, net income for the first quarter of 2016 increased 31.6% compared to the first quarter of 2015. Diluted
earnings per share for the first quarter of 2016 were $0.47, an increase of 14.6% compared to the first quarter of 2015. Excluding merger-related expenses, diluted earnings per share for the first quarter of 2016 increased 29.3% compared to the
first quarter of 2015.
Net Interest Income
Net interest income is the difference between the interest income earned on interest-earning
assets, such as loans and investment securities, and the interest expense paid on interest-bearing liabilities, such as deposits and borrowings. The Companys net interest income is largely determined by our net interest spread, which is the
difference between the average yield earned on interest-earning assets and the average rate paid on interest-bearing liabilities, and the relative amounts of interest-earning assets and interest-bearing liabilities. The Companys tax-equivalent
net interest spread was 4.28% and 4.40% for the three months ended March 31, 2016 and March 31, 2015, respectively. The Companys tax-equivalent net interest margin, which is net interest income as a percentage of average
interest-earning assets, was 4.40% and 4.51% for the three months ended March 31, 2016 and March 31, 2015, respectively. The decrease in the net interest spread and net interest margin related primarily to a decrease in the average yield
on loans.
Net interest income totaled $15.7 million for the three months ended March 31, 2016, an increase of $3.2 million, or 25.9%, compared to
the three months ended March 31, 2015. Interest income increased $3.7 million, or 28.1%, in the first quarter of 2016, compared to the first quarter of 2015. Interest expense increased $513,000, or 63.2%, in the first quarter of 2016 compared
to the first quarter of 2015. The increases were the result of increased average volume of loans and deposits from the Louisiana Bancorp acquisition in the third quarter of 2015.
34
The following table sets forth, for the periods indicated, information regarding (i) the total dollar amount
of interest income of the Company from interest-earning assets and the resultant average yields; (ii) the total dollar amount of interest expense on interest-bearing liabilities and the resultant average rate; (iii) net interest income;
(iv) net interest spread; and (v) net interest margin. Information is based on average monthly balances during the indicated periods. Taxable equivalent (TE) yields are calculated using a marginal tax rate of 35%.
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
|
|
Average
|
|
|
|
Average
|
|
|
|
|
|
Yield/
|
|
|
Average
|
|
|
|
|
|
Yield/
|
|
(dollars in thousands)
|
|
Balance
|
|
|
Interest
|
|
|
Rate
(1)
|
|
|
Balance
|
|
|
Interest
|
|
|
Rate
(1)
|
|
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable
(1)
|
|
$
|
1,225,577
|
|
|
$
|
16,018
|
|
|
|
5.20
|
%
|
|
$
|
919,109
|
|
|
$
|
12,361
|
|
|
|
5.40
|
%
|
Investment securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
153,336
|
|
|
|
798
|
|
|
|
2.08
|
|
|
|
148,820
|
|
|
|
736
|
|
|
|
1.98
|
|
Tax-exempt (TE)
|
|
|
35,213
|
|
|
|
173
|
|
|
|
3.02
|
|
|
|
35,511
|
|
|
|
174
|
|
|
|
3.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investment securities
|
|
|
188,549
|
|
|
|
971
|
|
|
|
2.26
|
|
|
|
184,331
|
|
|
|
910
|
|
|
|
2.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other interest-earning assets
|
|
|
15,949
|
|
|
|
59
|
|
|
|
1.50
|
|
|
|
15,044
|
|
|
|
34
|
|
|
|
0.91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-earning assets (TE)
|
|
|
1,430,075
|
|
|
|
17,048
|
|
|
|
4.77
|
|
|
|
1,118,484
|
|
|
|
13,305
|
|
|
|
4.81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-earning assets
|
|
|
114,835
|
|
|
|
|
|
|
|
|
|
|
|
107,736
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
1,544,910
|
|
|
|
|
|
|
|
|
|
|
$
|
1,226,220
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings, checking and money market
|
|
$
|
678,682
|
|
|
$
|
400
|
|
|
|
0.24
|
%
|
|
$
|
523,535
|
|
|
$
|
291
|
|
|
|
0.23
|
%
|
Certificates of deposit
|
|
|
273,757
|
|
|
|
532
|
|
|
|
0.78
|
|
|
|
219,066
|
|
|
|
394
|
|
|
|
0.73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing deposits
|
|
|
952,439
|
|
|
|
932
|
|
|
|
0.39
|
|
|
|
742,601
|
|
|
|
685
|
|
|
|
0.37
|
|
Short-term FHLB advances
|
|
|
41,005
|
|
|
|
43
|
|
|
|
0.42
|
|
|
|
16,576
|
|
|
|
6
|
|
|
|
0.15
|
|
Long term FHLB advances
|
|
|
84,986
|
|
|
|
351
|
|
|
|
1.65
|
|
|
|
18,865
|
|
|
|
103
|
|
|
|
2.19
|
|
Securities sold under repurchase agreement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20,295
|
|
|
|
19
|
|
|
|
0.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing liabilities
|
|
|
1,078,430
|
|
|
|
1,326
|
|
|
|
0.49
|
|
|
|
798,337
|
|
|
|
813
|
|
|
|
0.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing liabilities
|
|
|
298,441
|
|
|
|
|
|
|
|
|
|
|
|
271,822
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
1,376,871
|
|
|
|
|
|
|
|
|
|
|
|
1,070,159
|
|
|
|
|
|
|
|
|
|
Shareholders equity
|
|
|
168,039
|
|
|
|
|
|
|
|
|
|
|
|
156,061
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders equity
|
|
$
|
1,544,910
|
|
|
|
|
|
|
|
|
|
|
$
|
1,226,220
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest-earning assets
|
|
$
|
351,645
|
|
|
|
|
|
|
|
|
|
|
$
|
320,147
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest spread (TE)
|
|
|
|
|
|
$
|
15,722
|
|
|
|
4.28
|
%
|
|
|
|
|
|
$
|
12,492
|
|
|
|
4.40
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (TE)
|
|
|
|
|
|
|
|
|
|
|
4.40
|
%
|
|
|
|
|
|
|
|
|
|
|
4.51
|
%
|
(1)
|
Nonperforming loans are included in the respective average loan balances, net of deferred fees, discounts and loans in process. Acquired loans were recorded at fair value upon acquisition and accrete interest income
over the remaining lives of the respective loans.
|
35
The following table displays the dollar amount of changes in interest income and interest expense for major
components of interest-earning assets and interest-bearing liabilities. The table distinguishes between (i) changes attributable to volume (changes in average volume between periods times prior year rate), (ii) changes attributable to rate
(changes in average rate between periods times prior year volume) and (iii) total increase (decrease).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2016 Compared to 2015
|
|
|
|
Change Attributable To
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
Increase
|
|
(dollars in thousands)
|
|
Rate
|
|
|
Volume
|
|
|
(Decrease)
|
|
Interest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable
|
|
$
|
(290
|
)
|
|
$
|
3,947
|
|
|
$
|
3,657
|
|
Investment securities (TE)
|
|
|
40
|
|
|
|
21
|
|
|
|
61
|
|
Other interest-earning assets
|
|
|
23
|
|
|
|
3
|
|
|
|
25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income
|
|
|
(227
|
)
|
|
|
3,971
|
|
|
|
3,743
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings, checking and money market accounts
|
|
|
19
|
|
|
|
90
|
|
|
|
109
|
|
Certificates of deposit
|
|
|
34
|
|
|
|
105
|
|
|
|
138
|
|
FHLB advances
|
|
|
(50
|
)
|
|
|
335
|
|
|
|
285
|
|
Securities sold under repurchase agreement
|
|
|
|
|
|
|
(19
|
)
|
|
|
(19
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest expense
|
|
|
3
|
|
|
|
511
|
|
|
|
513
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in net interest income
|
|
$
|
(230
|
)
|
|
$
|
3,460
|
|
|
$
|
3,230
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for Loan Losses
For the quarter ended March 31, 2016, the Company recorded a provision for loan
losses of $850,000, which was 57.8% higher than the $538,000 recorded for the same period in 2015. Of the $850,000 in provision for the first quarter of 2016, $461,000 was associated with one energy-related borrower. Net loan charge-offs amounted to
$300 during the quarter ended March 31, 2016.
As of March 31, 2016, the Companys ratio of allowance for loan losses to total loans was
0.85%, compared to 0.78% and 0.90% at December 31, 2015 and March 31, 2015, respectively. Excluding acquired loans, the ratio of allowance for loan losses to total loans was 1.20% at March 31, 2016, compared to 1.15% and 1.07% at
December 31, 2015 and March 31, 2015, respectively. The ratio of non-performing loans to total assets was 0.73% at March 31, 2016, compared to 0.83% at December 31, 2015.
Noninterest Income
Noninterest income was $2.6 million for the three months ended March 31, 2016, $489,000, or 23.5%, higher than the $2.1
million earned for the same period in 2015. The increase in noninterest income in the first quarter of 2016 compared to the first quarter of 2015 resulted primarily from increases in other non-interest income (up $393,000 primarily from recoveries
on acquired loans previously charged-off) and service fees and charges (up $144,000 due primarily to the Louisiana Bancorp acquisition and increased customer transactions), which were partially offset by a decrease in gains on the sale of mortgage
loans (down $72,000).
Noninterest Expense
Noninterest expense was $12.3 million for the three months ended March 31, 2016, $2.6
million, or 27.0%, higher than the $9.7 million recorded for the same period in 2015. Noninterest expense includes merger-related expenses due to the acquisition of Louisiana Bancorp of $613,000 for the three months ended March 31, 2016.
Excluding merger-related expenses, the increase in noninterest expense in the first quarter of 2016 compared to the first quarter of 2015 relates primarily to the growth of the Company due to the addition of Louisiana Bancorp branches and employees.
36
Income Taxes
For the quarters ended March 31, 2016 and March 31, 2015, the Company
incurred income tax expense of $1.7 million and $1.5 million, respectively. The Companys effective tax rate was 34.3% and 34.0% during the first quarters of 2016 and 2015, respectively. Differences between the effective tax rate and the
statutory tax rate primarily relate to variances in items that are non-taxable or non-deductible (e.g., state tax, tax-exempt income, merger-related expenses, etc.).