cbtx_Current_Folio_10Q

Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 10‑Q

 

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

 

For the quarterly period ended  March 31, 2019

OR

 

TRANSITION REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from ____   to   ____.

Commission File Number: 001-38280

 

 

 

CBTX, INC.

(Exact name of registrant as specified in its charter)

 

 

 

 

 

Texas

 

20‑8339782

 

 

 

(State or other jurisdiction of

 

(I.R.S. employer

 

 

 

incorporation or organization)

 

identification no.)

 

9 Greenway Plaza, Suite 110

Houston, Texas 77046

(Address of principal executive offices)

 

 

(713) 210‑7600

(Registrant’s telephone number, including area code)

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒  No 

 

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  No 

 

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

 

 

 

Large accelerated filer

 

Accelerated filer

 

 

 

Non-accelerated filer

 

Smaller reporting company 

 

 

 

 

 

Emerging growth company 

 

 

 

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

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b‑2 of the Exchange Act). Yes No 

 

As of April 24, 2019, there were 25,999,297 shares of the registrant’s common stock, par value $0.01 per share outstanding, including 221,253 shares of unvested restricted stock.

 

 

 

 

 


 

Table of Contents

CBTX, INC.

 

 

Page

PART I — FINANCIAL INFORMATION 

 

 

 

Item 1. 

Financial Statements – (Unaudited)

1

 

Condensed Consolidated Balance Sheets as of  March 31, 2019 and December 31, 2018

1

 

Condensed Consolidated Statements of Income for the Three Months Ended March 31, 2019 and 2018

2

 

Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2019 and 2018

3

 

Condensed Consolidated Statements of Changes in Shareholders’ Equity for the Three Months Ended March 31, 2019 and 2018

4

 

Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2019 and 2018

5

 

Notes to Condensed Consolidated Financial Statements

6

Item 2. 

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

32

 

Cautionary Note Regarding Forward-looking Statements

32

 

Overview

33

 

Results of Operations

34

 

Financial Condition

38

 

Liquidity and Capital Resources

45

 

Interest Rate Sensitivity and Market Risk

48

 

Impact of Inflation

49

 

Non-GAAP Financial Measures

49

 

Critical Accounting Policies

50

 

Recently Issued Accounting Pronouncements

52

Item 3. 

Quantitative and Qualitative Disclosures about Market Risk

52

Item 4. 

Controls and Procedures

52

 

 

 

PART II — OTHER INFORMATION 

Item 1. 

Legal Proceedings

52

Item 1A. 

Risk Factors

52

Item 2. 

Unregistered Sales of Equity Securities and Use of Proceeds

52

Item 3. 

Defaults Upon Senior Securities

53

Item 4. 

Mine Safety Disclosures

53

Item 5. 

Other Information

53

Item 6. 

Exhibits

53

 

SIGNATURES

54

 

 

 


 

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

CBTX, INC. AND SUBSIDIARY

Condensed Consolidated Balance Sheets

(Dollars in thousands, except par value and share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 

 

December 31, 

 

    

2019

    

2018

 

 

 

 

 

 

ASSETS

 

 

  

 

 

  

Cash and due from banks

 

$

54,110

 

$

54,450

Interest-bearing deposits at other financial institutions

 

 

222,405

 

 

327,620

Total cash and cash equivalents

 

 

276,515

 

 

382,070

Debt securities

 

 

228,684

 

 

229,964

Equity investments

 

 

15,065

 

 

13,026

Loans held for sale

 

 

852

 

 

 —

Loans, net of allowance for loan loss of $24,643 and $23,693 at March 31, 2019 and December 31, 2018, respectively

 

 

2,520,066

 

 

2,423,130

Premises and equipment, net of accumulated depreciation of $30,674 and $29,867 at March 31, 2019 and December 31, 2018, respectively

 

 

51,453

 

 

51,622

Goodwill

 

 

80,950

 

 

80,950

Other intangible assets, net of accumulated amortization of $15,147 and $14,915 at March 31, 2019 and December 31, 2018, respectively

 

 

5,538

 

 

5,775

Bank-owned life insurance

 

 

71,955

 

 

71,525

Operating lease right-to-use asset

 

 

12,879

 

 

 —

Deferred tax asset, net

 

 

5,942

 

 

7,201

Other assets

 

 

13,563

 

 

13,833

Total assets

 

$

3,283,462

 

$

3,279,096

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

  

 

 

  

Liabilities

 

 

  

 

 

  

Noninterest-bearing deposits

 

$

1,229,172

 

$

1,183,058

Interest-bearing deposits

 

 

1,521,827

 

 

1,583,224

Total deposits

 

 

2,750,999

 

 

2,766,282

Repurchase agreements

 

 

1,600

 

 

2,498

Junior subordinated debt

 

 

 —

 

 

1,571

Operating lease liabilities

 

 

15,134

 

 

 —

Other liabilities

 

 

17,076

 

 

21,120

Total liabilities

 

 

2,784,809

 

 

2,791,471

Commitments and contingencies (Note 17)

 

 

  

 

 

  

Shareholders’ equity

 

 

  

 

 

  

Preferred stock, $0.01 par value, 10,000,000 shares authorized, no shares issued

 

 

 —

 

 

 —

Common stock, $0.01 par value, 90,000,000 shares authorized, 25,777,904 and 25,777,693 shares issued at March 31, 2019 and December 31, 2018, 24,918,476 and 24,907,421 shares outstanding at March 31, 2019 and December 31, 2018, respectively

 

 

258

 

 

258

Additional paid-in capital

 

 

344,971

 

 

344,497

Retained earnings

 

 

168,603

 

 

160,626

Treasury stock, at cost, 859,428 and 870,272 shares held at March 31, 2019 and December 31, 2018, respectively

 

 

(14,597)

 

 

(14,781)

Accumulated other comprehensive loss, net of tax of $155 and $791 at March 31, 2019 and December 31, 2018, respectively

 

 

(582)

 

 

(2,975)

Total shareholders’ equity

 

 

498,653

 

 

487,625

Total liabilities and shareholders’ equity

 

$

3,283,462

 

$

3,279,096

 

See accompanying notes to condensed consolidated financial statements.

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CBTX, INC. AND SUBSIDIARY

Condensed Consolidated Statements of Income (Unaudited)

(Dollars in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 

 

    

2019

    

2018

Interest income

 

 

  

 

 

  

Interest and fees on loans

 

$

33,793

 

$

28,462

Debt securities

 

 

1,557

 

 

1,436

Federal Funds and other interest-earning assets

 

 

1,483

 

 

995

Equity investments

 

 

152

 

 

192

Total interest income

 

 

36,985

 

 

31,085

Interest expense

 

 

  

 

 

  

Deposits

 

 

3,584

 

 

1,948

Federal Home Loan Bank advances and repurchase agreements

 

 

65

 

 

 1

Note payable and junior subordinated debt

 

 

 8

 

 

97

Total interest expense

 

 

3,657

 

 

2,046

Net interest income

 

 

33,328

 

 

29,039

Provision for loan losses

 

 

1,147

 

 

865

Net interest income after provision for loan losses

 

 

32,181

 

 

28,174

Noninterest income

 

 

  

 

 

  

Deposit account service charges

 

 

1,629

 

 

1,478

Net gain on sale of assets

 

 

88

 

 

130

Card interchange fees

 

 

864

 

 

927

Earnings on bank-owned life insurance

 

 

430

 

 

451

Other

 

 

482

 

 

375

Total noninterest income

 

 

3,493

 

 

3,361

Noninterest expense

 

 

  

 

 

  

Salaries and employee benefits

 

 

13,822

 

 

12,695

Net occupancy expense

 

 

2,267

 

 

2,265

Regulatory fees

 

 

464

 

 

545

Data processing

 

 

714

 

 

683

Software

 

 

440

 

 

365

Printing, stationery and office

 

 

353

 

 

264

Amortization of intangibles

 

 

232

 

 

255

Professional and director fees

 

 

2,091

 

 

919

Correspondent bank and customer related transaction expenses

 

 

65

 

 

67

Loan processing costs

 

 

95

 

 

118

Advertising, marketing and business development

 

 

440

 

 

506

Repossessed real estate and other asset expense

 

 

 —

 

 

57

Security and protection expense

 

 

323

 

 

302

Telephone and communications

 

 

378

 

 

386

Other expenses

 

 

901

 

 

857

Total noninterest expense

 

 

22,585

 

 

20,284

Net income before income tax expense

 

 

13,089

 

 

11,251

Income tax expense

 

 

2,599

 

 

2,139

Net income

 

$

10,490

 

$

9,112

Earnings per common share

 

 

  

 

 

  

Basic

 

$

0.42

 

$

0.37

Diluted

 

$

0.42

 

$

0.37

 

See accompanying notes to condensed consolidated financial statements.

 

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CBTX, INC. AND SUBSIDIARY

Condensed Consolidated Statements of Comprehensive Income (Unaudited)

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 

 

 

    

2019

    

2018

    

Net income

 

$

10,490

    

$

9,112

    

Unrealized gains (losses) on debt securities available for sale arising during the period, net

 

 

3,027

 

 

(3,665)

 

Reclassification adjustments for net realized gains included in net income

 

 

 3

 

 

 —

 

Change in related deferred income tax

 

 

(637)

 

 

770

 

Other comprehensive income (loss), net of tax

 

 

2,393

 

 

(2,895)

 

Total comprehensive income

 

$

12,883

 

$

6,217

 

 

See accompanying notes to condensed consolidated financial statements.

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CBTX, INC. AND SUBSIDIARY

Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited)

(Dollars in thousands, except share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

Common Stock

 

Paid-In

 

Retained

 

Treasury Stock

 

Comprehensive

 

 

 

 

    

Shares

    

Amount

    

Capital

    

Earnings

    

Shares

    

Amount

    

Income (Loss)

    

Total

Three Months Ended March 31, 2018:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2017

 

25,731,504

 

$

257

 

$

343,249

 

$

118,353

 

(898,272)

 

$

(15,256)

 

$

(389)

 

$

446,214

Net income

 

 —

 

 

 —

 

 

 —

 

 

9,112

 

 —

 

 

 —

 

 

 —

 

 

9,112

Dividends on common stock, $0.05 per share

 

 —

 

 

 —

 

 

 —

 

 

(1,252)

 

 —

 

 

 —

 

 

 —

 

 

(1,252)

Stock-based compensation expense

 

 —

 

 

 —

 

 

392

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

392

Other comprehensive loss, net of tax

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 —

 

 

 —

 

 

(2,895)

 

 

(2,895)

Balance at March 31, 2018

 

25,731,504

 

$

257

 

$

343,641

 

$

126,213

 

(898,272)

 

$

(15,256)

 

$

(3,284)

 

$

451,571

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2018

 

25,777,693

 

$

258

 

$

344,497

 

$

160,626

 

(870,272)

 

$

(14,781)

 

$

(2,975)

 

$

487,625

Net income

 

 —

 

 

 —

 

 

 —

 

 

10,490

 

 —

 

 

 —

 

 

 —

 

 

10,490

Dividends on common stock, $0.10 per share

 

 —

 

 

 —

 

 

 —

 

 

(2,513)

 

 —

 

 

 —

 

 

 —

 

 

(2,513)

Vesting of restricted stock, net of shares withheld for employee tax liabilities

 

211

 

 

 —

 

 

(2)

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

(2)

Exercise of stock options

 

 —

 

 

 —

 

 

(69)

 

 

 —

 

10,844

 

 

184

 

 

 —

 

 

115

Stock-based compensation expense

 

 —

 

 

 —

 

 

545

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

545

Other comprehensive income, net of tax

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 —

 

 

 —

 

 

2,393

 

 

2,393

Balance at March 31, 2019

 

25,777,904

 

$

258

 

$

344,971

 

$

168,603

 

(859,428)

 

$

(14,597)

 

$

(582)

 

$

498,653

 

See accompanying notes to condensed consolidated financial statements.

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CBTX, INC. AND SUBSIDIARY

Condensed Consolidated Statements of Cash Flows (Unaudited)

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 

 

    

2019

 

2018

Cash flows from operating activities:

 

 

  

 

 

 

Net income

 

$

10,490

 

$

9,112

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

 

 

  

 

 

 

Provision for loan losses

 

 

1,147

 

 

865

Depreciation

 

 

824

 

 

825

Amortization of intangibles

 

 

232

 

 

255

Amortization of premiums on securities

 

 

256

 

 

291

Amortization of lease right-to-use assets

 

 

329

 

 

 —

Accretion of lease liabilities

 

 

131

 

 

 —

Earnings on bank-owned life insurance

 

 

(430)

 

 

(451)

Stock-based compensation expense

 

 

545

 

 

392

Deferred income tax provision

 

 

622

 

 

499

Net realized gains on sales of debt securities

 

 

(9)

 

 

(6)

Net gains on sales of assets

 

 

(88)

 

 

(130)

Change in operating assets and liabilities:

 

 

  

 

 

 

Loans held for sale

 

 

(820)

 

 

1,464

Other assets

 

 

303

 

 

2,312

Operating lease liabilities

 

 

(448)

 

 

 —

Other liabilities

 

 

(3,069)

 

 

(7,726)

Total adjustments

 

 

(475)

 

 

(1,410)

Net cash provided by operating activities

 

 

10,015

 

 

7,702

Cash flows from investing activities:

 

 

  

 

 

 

Purchases of debt securities

 

 

(153,962)

 

 

(85,675)

Proceeds from sales, calls and maturities of debt securities

 

 

153,056

 

 

78,890

Principal repayments of debt securities

 

 

4,969

 

 

4,861

Net increase in loans

 

 

(97,639)

 

 

(45,514)

Sales of loan participations

 

 

 —

 

 

7,500

Purchases of loan participations

 

 

(1,256)

 

 

(7,000)

Net contributions to equity investments

 

 

(2,039)

 

 

(449)

Proceeds from sales of U.S. Small Business Administration loans

 

 

818

 

 

237

Redemption (purchases) of bank-owned life insurance

 

 

 —

 

 

(1,700)

Proceeds from sales of repossessed real estate and other assets

 

 

20

 

 

393

Net sales (purchases) of premises and equipment

 

 

(653)

 

 

(354)

Net cash used in investing activities

 

 

(96,686)

 

 

(48,811)

Cash flows from financing activities:

 

 

  

 

 

 

Net increase (decrease) in noninterest-bearing deposits

 

 

46,114

 

 

10,732

Net increase (decrease) in interest-bearing deposits

 

 

(61,397)

 

 

(14,002)

Net increase (decrease) in securities sold under agreements to repurchase

 

 

(898)

 

 

(664)

Proceeds from exercise of stock options

 

 

115

 

 

 —

Payments to tax authorities for stock-based compensation

 

 

(2)

 

 

 —

Redemption of trust preferred securities

 

 

(1,571)

 

 

 —

Dividends paid on common stock

 

 

(1,245)

 

 

(1,241)

Net cash provided by financing activities

 

 

(18,884)

 

 

(5,175)

Net decrease in cash, cash equivalents and restricted cash

 

 

(105,555)

 

 

(46,284)

Cash, cash equivalents and restricted cash, beginning

 

 

382,070

 

 

326,199

Cash, cash equivalents and restricted cash, ending

 

$

276,515

 

$

279,915

 

See accompanying notes to condensed consolidated financial statements.

 

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CBTX, INC. AND SUBSIDIARY

Notes to Condensed Consolidated Financial Statements

(Unaudited)

 

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

CBTX, Inc., or the Company, or CBTX, operates 35 branches, 19 in the Houston market area, 15 in the Beaumont/East Texas market area and one in Dallas, through its wholly-owned subsidiary, CommunityBank of Texas, N.A., or the Bank. The Bank provides relationship-driven commercial banking products and services primarily to small and mid-sized businesses and professionals with operations within the Bank’s markets. The Bank operates under a national charter and therefore is subject to regulation by the Office of the Comptroller of the Currency, or OCC, and the Federal Deposit Insurance Corporation, or FDIC. The Company is subject to regulation by the Board of Governors of the Federal Reserve.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and the Bank. All material intercompany balances and transactions have been eliminated in consolidation.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States, or U.S. GAAP, but do not include all the information and footnotes required for complete consolidated financial statements. In management’s opinion, these interim unaudited condensed consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair statement of the Company’s consolidated financial position at March 31, 2019 and December 31, 2018, consolidated results of operations for the three months ended March 31, 2019 and 2018, consolidated shareholders’ equity for the three months ended March 31, 2019 and 2018 and consolidated cash flows for the three months ended March 31, 2019 and 2018.

Accounting measurements at interim dates inherently involve greater reliance on estimates than at year end and the results for the interim periods shown in this report are not necessarily indicative of results to be expected for the full year due in part to global economic and financial market conditions, interest rates, access to sources of liquidity, market competition and interruptions of business processes. These interim unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2018 included within our Annual Report on Form 10-K.

Reclassification— Within interest income, equity investment income for 2018 has been reclassified from federal funds and other interest-earning assets to a separate line and within interest expense, repurchase agreements and FHLB advance expense have been combined and notes payable and junior subordinated debt have also been combined. These reclassifications were made to conform to the 2019 financial statement presentation in the consolidated statements of income.

Accounting Standards Recently Adopted

The Company adopted Accounting Standards Update, or ASU 2016-02, Leases (Topic 842) on January 1, 2019, using the effective date as the date of initial adoption. The Company elected to apply certain practical expedients for transition, and under those expedients the Company did not reassess prior accounting decisions regarding the identification, classification and initial direct costs for leases existing at the effective date. The Company also elected to use hindsight in determining lease term when considering options to extend the lease and excluded short-term leases (defined as lease terms of 12 months or less). The Company elected to separate non-lease components from lease components in its application of ASU 2016-02. At adoption, the Company recorded right-of-use assets totaling $13.2 million, which represented the Company’s right to use, or control the use of, a  specified assets for their lease terms and the Company recorded lease liabilities totaling $15.5 million, which represented the Company’s liability to make lease payments under these leases. Accrued lease obligations and lease incentive liabilities totaling $2.3 million that were in other liabilities at December 31, 2018 were reversed as part of the adoption. The ASU 2016-02 standard applied to all leases existing at the date of initial  

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adoption. The Company’s financial statements and related footnotes were not updated for ASU 2016-02 for dates and periods before the date of adoption. See Note 16.

Accounting Standards Not Yet Adopted

ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts and requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, ASU 2016-13 amends the accounting for credit losses on available for sale debt securities and purchased financial assets with credit deterioration. ASU 2016-13 will be effective on January 1, 2020.

The Company is in the process of developing its process and methodology for implementing ASU 2016-13, with the assistance of an outside consultant. Existing technology is being adapted to conform to the requirements of ASU 2016-13.  The adoption of ASU 2016-13 will require changes to the Company’s accounting policies and disclosures for credit losses on financial instruments. The Company is continuing to evaluate the impact of this pronouncement on the allowance for credit losses and related future provisions.

Cash Flow Reporting

Cash, cash equivalents and restricted cash include cash, interest‑bearing and noninterest‑bearing transaction accounts with other banks and federal funds sold. The Bank is required to maintain regulatory reserves with the Federal Reserve Bank and the reserve requirements for the Bank were $16.2 million and $18.5 million at March 31, 2019 and December 31, 2018, respectively. Additionally, as of March 31, 2019 and December 31, 2018, the Company had $1.6 million in cash collateral used in our interest rate swap transactions. 

Supplemental disclosures of cash flow information are as follows for the periods indicated below:

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 

(Dollars in thousands)

    

2019

 

2018

Supplemental disclosures of cash flow information:

 

 

  

 

 

 

Cash paid for taxes

 

$

 —

 

$

 —

Cash paid for interest on deposits and repurchase agreements

 

 

3,536

 

 

1,960

Cash paid for interest on junior subordinated debt

 

 

63

 

 

87

 

 

 

 

 

 

 

Supplemental disclosures of non-cash flow information:

 

 

 

 

 

 

Dividends accrued

 

 

1,268

 

 

10

Operating lease right-to-use asset obtained in exchange for lease liabilities

 

 

13,208

 

 

 —

Repossessed real estate and other assets

 

 

41

 

 

 —

 

 

7


 

Table of Contents

NOTE 2: DEBT SECURITIES

The amortized cost and fair values of investments in debt securities as of the dates shown below were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

Gross

 

 

 

 

 

Amortized

 

Unrealized

 

Unrealized

 

 

(Dollars in thousands)

    

Cost

    

Gains

    

Losses

    

Fair Value

March 31, 2019

 

 

  

 

 

  

 

 

  

 

 

  

Debt securities available for sale:

 

 

  

 

 

  

 

 

  

 

 

  

State and municipal securities

 

$

54,854

 

$

811

 

$

(194)

 

$

55,471

U.S. agency securities:

 

 

  

 

 

  

 

 

  

 

 

  

Debt securities

 

 

17,315

 

 

 —

 

 

(255)

 

 

17,060

Collateralized mortgage obligations

 

 

66,230

 

 

158

 

 

(603)

 

 

65,785

Mortgage-backed securities

 

 

89,856

 

 

490

 

 

(1,116)

 

 

89,230

Other securities

 

 

1,135

 

 

 —

 

 

(27)

 

 

1,108

Total

 

$

229,390

 

$

1,459

 

$

(2,195)

 

$

228,654

Debt securities held to maturity:

 

 

  

 

 

  

 

 

  

 

 

  

Mortgage-backed securities

 

$

30

 

$

 2

 

$

 —

 

$

32

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross

 

Gross

 

 

 

 

 

Amortized

 

Unrealized

 

Unrealized

 

 

(Dollars in thousands)

    

Cost

    

Gains

    

Losses

    

Fair Value

December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities available for sale:

 

 

  

 

 

  

 

 

  

 

 

  

State and municipal securities

 

$

57,972

 

$

345

 

$

(626)

 

$

57,691

U.S. agency securities:

 

 

  

 

 

  

 

 

  

 

 

  

Debt securities

 

 

17,315

 

 

 —

 

 

(434)

 

 

16,881

Collateralized mortgage obligations

 

 

66,438

 

 

98

 

 

(1,122)

 

 

65,414

Mortgage-backed securities

 

 

90,845

 

 

230

 

 

(2,216)

 

 

88,859

Other securities

 

 

1,129

 

 

 —

 

 

(41)

 

 

1,088

Total

 

$

233,699

 

$

673

 

$

(4,439)

 

$

229,933

Debt securities held to maturity:

 

 

  

 

 

  

 

 

  

 

 

  

Mortgage-backed securities

 

$

31

 

$

 1

 

$

 —

 

$

32

 

The amortized cost and estimated fair value of debt securities, by contractual maturities, as of the dates shown below were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt Securities Available for Sale

 

Debt Securities Held to Maturity

 

 

Amortized

 

Fair

 

Amortized

 

Fair

(Dollars in thousands)

    

Cost

    

Value

    

Cost

    

Value

March 31, 2019

 

 

  

 

 

  

 

 

  

 

 

  

Amounts maturing in:

 

 

  

 

 

  

 

 

  

 

 

  

1 year or less

 

$

3,338

 

$

3,326

 

$

 —

 

$

 —

1 year through 5 years

 

 

20,086

 

 

19,846

 

 

 —

 

 

 —

5 years through 10 years

 

 

13,958

 

 

14,061

 

 

 —

 

 

 —

After 10 years

 

 

192,008

 

 

191,421

 

 

30

 

 

32

 

 

$

229,390

 

$

228,654

 

$

30

 

$

32

December 31, 2018

 

 

  

 

 

  

 

 

  

 

 

  

Amounts maturing in:

 

 

  

 

 

  

 

 

  

 

 

  

1 year or less

 

$

3,224

 

$

3,188

 

$

 —

 

$

 —

1 year through 5 years

 

 

22,784

 

 

22,370

 

 

 —

 

 

 —

5 years through 10 years

 

 

13,127

 

 

13,062

 

 

 —

 

 

 —

After 10 years

 

 

194,564

 

 

191,313

 

 

31

 

 

32

 

 

$

233,699

 

$

229,933

 

$