eqbk-10q_20160630.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

x

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

For the quarterly period ended June 30, 2016

OR

o

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 001-37624

 

EQUITY BANCSHARES, INC.

(Exact name of registrant as specified in its charter)

 

 

Kansas

 

72-1532188

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

 

 

7701 East Kellogg Drive, Suite 200

Wichita, KS

 

 

67207

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code: 316.612.6000

 

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 and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files). ☒ Yes ☐ No

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

 

Large accelerated filer

o

 

Accelerated filer

o

Non-accelerated filer

x

 

Smaller reporting company

o

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

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date.

 

 

Shares outstanding as of

July 31, 2016

Class A Common Stock, par value $0.01 per share

7,321,984

Class B Non-Voting Common Stock, par value $0.01 per share

897,431

 

 

 

 


TABLE OF CONTENTS

 

PART I

Financial Information

5

Item 1.

Financial Statements

5

 

Consolidated Balance Sheets

5

 

Consolidated Statements of Income

6

 

Consolidated Statements of Comprehensive Income

7

 

Consolidated Statements of Stockholders’ Equity

8

 

Consolidated Statements of Cash Flows

9

 

Condensed Notes to Interim Consolidated Financial Statements

10

Item 2.

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

34

 

Overview

34

 

Critical Accounting Policies

36

 

Results of Operations

37

 

Financial Condition

49

 

Liquidity and Capital Resources

62

 

Non-GAAP Financial Measures

65

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

68

Item 4.

Controls and Procedures

70

Part II

OTHER INFORMATION

71

Item 1.

Legal Proceedings

71

Item 1A.

Risk Factors

71

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

71

Item 3.

Defaults Upon Senior Securities

71

Item 4.

Mine Safety Disclosures

71

Item 5.

Other Information

71

Item 6.

Exhibits

71

 

Important Notice about Information in this Quarterly Report

Unless we state otherwise or the context otherwise requires, references in this Quarterly Report to “we,” “our,” “us,” “the Company” and “Equity” refer to Equity Bancshares, Inc. and its consolidated subsidiaries, including Equity Bank, which we sometimes refer to as “Equity Bank,” “the Bank” or “our Bank.”

The information contained in this Quarterly Report is accurate only as of the date of this Quarterly Report on Form 10-Q and as of the dates specified herein.

2


CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).  These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “project,” “forecast,” “goal,” “target,” “would” and “outlook,” or the negative variations of those words or other comparable words of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements described under the heading “Item 1A - Risk Factors” in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 17, 2016, and in Item 1A – Risk Factors of this Quarterly Report.

There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but are not limited to, the following:

 

·

an economic downturn, especially one affecting our core market areas;

 

·

the occurrence of various events that negatively impact the real estate market, since a significant portion of our loan portfolio is secured by real estate;

 

·

difficult or unfavorable conditions in the market for financial products and services generally;

 

·

interest rate fluctuations, which could have an adverse effect on our profitability;

 

·

external economic and/or market factors, such as changes in monetary and fiscal policies and laws, including the interest rate policies of the Board of Governors of the Federal Reserve System, or the Federal Reserve, inflation or deflation, changes in the demand for loans, and fluctuations in consumer spending, borrowing and savings habits, which may have an adverse impact on our financial condition;

 

·

continued or increasing competition from other financial institutions, credit unions, and non-bank financial services companies, many of which are subject to different regulations than we are;

 

·

costs arising from the environmental risks associated with making loans secured by real estate;

 

·

losses resulting from a decline in the credit quality of the assets that we hold;

 

·

inadequacies in our allowance for loan losses, which could require us to take a charge to earnings and thereby adversely affect our financial condition;

 

·

inaccuracies or changes in the appraised value of real estate securing the loans that we originate, which could lead to losses if the real estate collateral is later foreclosed upon and sold at a price lower than the appraised value;

 

·

the costs of integrating the businesses we acquire, which may be greater than expected;

 

·

challenges arising from unsuccessful attempts to expand into new geographic markets, products, or services;

 

·

a lack of liquidity resulting from decreased loan repayment rates, lower deposit balances, or other factors;

 

·

restraints on the ability of Equity Bank to pay dividends to us, which could limit our liquidity;

 

·

the loss of our largest loan and depositor relationships;

 

·

limitations on our ability to lend and to mitigate the risks associated with our lending activities as a result of our size and capital position;

 

·

additional regulatory requirements and restrictions on our business, which could impose additional costs on us;

 

·

increased capital requirements imposed by banking regulators, which may require us to raise capital at a time when capital is not available on favorable terms or at all;

 

·

a failure in the internal controls we have implemented to address the risks inherent to the business of banking;

3


 

·

inaccuracies in our assumptions about future events, which could result in material differences between our financial projections and actual financial performance;

 

·

the departure of key members of our management personnel or our inability to hire qualified management personnel;

 

·

disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems;

 

·

unauthorized access to nonpublic personal information of our customers, which could expose us to litigation or reputational harm;

 

·

disruptions, security breaches, or other adverse events affecting the third-party vendors who perform several of our critical processing functions;

 

·

the occurrence of adverse weather or manmade events, which could negatively affect our core markets or disrupt our operations;

 

·

an increase in FDIC deposit insurance assessments, which could adversely affect our earnings;

 

·

an inability to keep pace with the rate of technological advances due to a lack of resources to invest in new technologies; and

 

·

other factors that are discussed in “Risk Factors.”

The foregoing factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements that are included in this Quarterly Report. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New risks and uncertainties arise from time to time, and it is not possible for us to predict those events or how they may affect us. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements, expressed or implied, included in this Quarterly Report on Form 10-Q are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue.

 

 

4


PART I

 

 

Item 1: Financial Statements

EQUITY BANCSHARES, INC.

CONSOLIDATED BALANCE SHEETS

June 30, 2016 and December 31, 2015

(Dollar amounts in thousands, except per share data)

 

 

 

(Unaudited)

June 30,

 

 

December 31,

 

 

 

2016

 

 

2015

 

ASSETS

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

25,413

 

 

$

36,276

 

Federal funds sold

 

 

20,789

 

 

 

20,553

 

Cash and cash equivalents

 

 

46,202

 

 

 

56,829

 

Interest-bearing time deposits in other banks

 

 

5,245

 

 

 

5,245

 

Available-for-sale securities

 

 

74,976

 

 

 

130,810

 

Held-to-maturity securities, fair value of $324,425 and $312,802

 

 

317,509

 

 

 

310,539

 

Loans held for sale

 

 

4,002

 

 

 

3,504

 

Loans, net of allowance for loan losses of $6,030 and $5,506

 

 

974,080

 

 

 

954,849

 

Other real estate owned, net

 

 

4,898

 

 

 

5,811

 

Premises and equipment, net

 

 

39,103

 

 

 

39,147

 

Bank owned life insurance

 

 

33,052

 

 

 

32,555

 

Federal Reserve Bank and Federal Home Loan Bank stock

 

 

10,875

 

 

 

11,013

 

Interest receivable

 

 

4,323

 

 

 

4,540

 

Goodwill

 

 

18,130

 

 

 

18,130

 

Core deposit intangible, net

 

 

1,376

 

 

 

1,549

 

Other

 

 

11,086

 

 

 

11,206

 

Total assets

 

$

1,544,857

 

 

$

1,585,727

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

Demand

 

$

157,896

 

 

$

157,834

 

Total non-interest-bearing deposits

 

 

157,896

 

 

 

157,834

 

Savings, NOW, and money market

 

 

595,272

 

 

 

619,468

 

Time

 

 

443,599

 

 

 

438,612

 

Total interest-bearing deposits

 

 

1,038,871

 

 

 

1,058,080

 

Total deposits

 

 

1,196,767

 

 

 

1,215,914

 

Federal funds purchased and retail repurchase agreements

 

 

22,782

 

 

 

20,762

 

Federal Home Loan Bank advances

 

 

147,648

 

 

 

145,439

 

Bank stock loan

 

 

 

 

 

18,612

 

Subordinated debentures

 

 

9,371

 

 

 

9,251

 

Contractual obligations

 

 

2,831

 

 

 

3,093

 

Interest payable and other liabilities

 

 

7,270

 

 

 

5,423

 

Total liabilities

 

 

1,386,669

 

 

 

1,418,494

 

Commitments and contingent liabilities, see Notes 10 and 11

 

 

 

 

 

 

 

 

Stockholders’ equity, see Note 6

 

 

 

 

 

 

 

 

Preferred stock, Series C (liquidation preference of $16,372)

 

 

 

 

 

16,372

 

Common stock

 

 

97

 

 

 

97

 

Additional paid-in capital

 

 

138,480

 

 

 

138,077

 

Retained earnings

 

 

41,240

 

 

 

34,955

 

Accumulated other comprehensive loss

 

 

(1,732

)

 

 

(2,371

)

Employee stock loans

 

 

(242

)

 

 

(242

)

Treasury stock

 

 

(19,655

)

 

 

(19,655

)

Total stockholders’ equity

 

 

158,188

 

 

 

167,233

 

Total liabilities and stockholders’ equity

 

$

1,544,857

 

 

$

1,585,727

 

 

See accompanying condensed notes to interim consolidated financial statements.

 

5


EQUITY BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF INCOME

For the Three and Six Months ended June 30, 2016 and 2015

(Dollar amounts in thousands, except per share data)

 

 

 

(Unaudited)

Three Months Ended

June 30,

 

 

(Unaudited)

Six Months Ended

June 30,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Interest and dividend income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

11,551

 

 

$

10,737

 

 

$

23,392

 

 

$

21,149

 

Securities, taxable

 

 

1,987

 

 

 

1,796

 

 

 

4,196

 

 

 

3,529

 

Securities, nontaxable

 

 

332

 

 

 

265

 

 

 

660

 

 

 

455

 

Federal funds sold and other

 

 

510

 

 

 

169

 

 

 

994

 

 

 

266

 

Total interest and dividend income

 

 

14,380

 

 

 

12,967

 

 

 

29,242

 

 

 

25,399

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

1,670

 

 

 

1,090

 

 

 

3,277

 

 

 

2,126

 

Federal funds purchased and retail repurchase agreements

 

 

14

 

 

 

14

 

 

 

26

 

 

 

30

 

Federal Home Loan Bank advances

 

 

345

 

 

 

88

 

 

 

677

 

 

 

126

 

Bank stock loan

 

 

 

 

 

149

 

 

 

 

 

 

300

 

Subordinated debentures

 

 

157

 

 

 

160

 

 

 

310

 

 

 

318

 

Total interest expense

 

 

2,186

 

 

 

1,501

 

 

 

4,290

 

 

 

2,900

 

Net interest income

 

 

12,194

 

 

 

11,466

 

 

 

24,952

 

 

 

22,499

 

Provision for loan losses

 

 

532

 

 

 

605

 

 

 

1,255

 

 

 

1,330

 

Net interest income after provision for loan losses

 

 

11,662

 

 

 

10,861

 

 

 

23,697

 

 

 

21,169

 

Non-interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges and fees

 

 

807

 

 

 

615

 

 

 

1,586

 

 

 

1,170

 

Debit card income

 

 

728

 

 

 

540

 

 

 

1,405

 

 

 

981

 

Mortgage banking

 

 

335

 

 

 

375

 

 

 

577

 

 

 

578

 

Increase in value of bank owned life insurance

 

 

246

 

 

 

231

 

 

 

497

 

 

 

466

 

Net gain from securities transactions

 

 

59

 

 

 

2

 

 

 

479

 

 

 

370

 

Other

 

 

277

 

 

 

285

 

 

 

606

 

 

 

880

 

Total non-interest income

 

 

2,452

 

 

 

2,048

 

 

 

5,150

 

 

 

4,445

 

Non-interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

5,246

 

 

 

4,862

 

 

 

10,458

 

 

 

9,584

 

Net occupancy and equipment

 

 

1,068

 

 

 

1,020

 

 

 

2,162

 

 

 

2,126

 

Data processing

 

 

869

 

 

 

727

 

 

 

1,707

 

 

 

1,381

 

Professional fees

 

 

568

 

 

 

441

 

 

 

1,017

 

 

 

912

 

Advertising and business development

 

 

330

 

 

 

277

 

 

 

548

 

 

 

568

 

Telecommunications

 

 

287

 

 

 

198

 

 

 

518

 

 

 

379

 

FDIC insurance

 

 

255

 

 

 

175

 

 

 

513

 

 

 

351

 

Courier and postage

 

 

158

 

 

 

126

 

 

 

303

 

 

 

263

 

Amortization of core deposit intangible

 

 

86

 

 

 

61

 

 

 

173

 

 

 

121

 

Loan expense

 

 

168

 

 

 

118

 

 

 

260

 

 

 

178

 

Other real estate owned

 

 

(58

)

 

 

56

 

 

 

8

 

 

 

121

 

Loss on debt extinguishment

 

 

 

 

 

 

 

 

58

 

 

 

316

 

Other

 

 

964

 

 

 

966

 

 

 

1,905

 

 

 

1,745

 

Total non-interest expense

 

 

9,941

 

 

 

9,027

 

 

 

19,630

 

 

 

18,045

 

Income before income taxes

 

 

4,173

 

 

 

3,882

 

 

 

9,217

 

 

 

7,569

 

Provision for income taxes

 

 

1,327

 

 

 

1,313

 

 

 

2,931

 

 

 

2,559

 

Net income

 

 

2,846

 

 

 

2,569

 

 

 

6,286

 

 

 

5,010

 

Dividends and discount accretion on preferred stock

 

 

 

 

 

(43

)

 

 

(1

)

 

 

(86

)

Net income allocable to common stockholders

 

$

2,846

 

 

$

2,526

 

 

$

6,285

 

 

$

4,924

 

Basic earnings per share

 

$

0.35

 

 

$

0.40

 

 

$

0.77

 

 

$

0.79

 

Diluted earnings per share

 

$

0.34

 

 

$

0.40

 

 

$

0.75

 

 

$

0.78

 

 

See accompanying condensed notes to interim consolidated financial statements.

 

6


EQUITY BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three and Six Months ended June 30, 2016 and 2015

(Dollar amounts in thousands)

 

 

 

(Unaudited)

Three Months Ended

June 30,

 

 

(Unaudited)

Six Months Ended

June 30,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Net income

 

$

2,846

 

 

$

2,569

 

 

$

6,286

 

 

$

5,010

 

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized holding gains (losses) arising during the period on

   available-for-sale securities

 

 

425

 

 

 

(650

)

 

 

1,633

 

 

 

(271

)

Amortization of unrealized losses on held-to-maturity securities

 

 

152

 

 

 

160

 

 

 

292

 

 

 

423

 

Reclassification adjustment for net gains included in net income

 

 

(473

)

 

 

(2

)

 

 

(893

)

 

 

(370

)

Total other comprehensive income (loss)

 

 

104

 

 

 

(492

)

 

 

1,032

 

 

 

(218

)

Tax effect

 

 

(42

)

 

 

188

 

 

 

(393

)

 

 

84

 

Other comprehensive income (loss), net of tax

 

 

62

 

 

 

(304

)

 

 

639

 

 

 

(134

)

Comprehensive income

 

$

2,908

 

 

$

2,265

 

 

$

6,925

 

 

$

4,876

 

 

See accompanying condensed notes to interim consolidated financial statements.

 

 

7


EQUITY BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

For the Six Months ended June 30, 2016 and 2015

(Unaudited)

(Dollar amounts in thousands, except per share data)

 

 

 

Preferred

Stock

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Series C

 

 

Shares

Outstanding

 

 

Amount

 

 

Additional

Paid-In

Capital

 

 

Retained

Earnings

 

 

Accumulated

Other

Comprehensive

Income (loss)

 

 

Employee

Stock

Loans

 

 

Treasury

Stock

 

 

Total

Stockholders’

Equity

 

Balance at January 1, 2015

 

$

16,359

 

 

 

6,067,511

 

 

$

76

 

 

$

98,398

 

 

$

24,832

 

 

$

(2,281

)

 

$

 

 

$

(19,655

)

 

$

117,729

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,010

 

 

 

 

 

 

 

 

 

 

 

 

5,010

 

Other comprehensive income,

   net of tax effects

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(134

)

 

 

 

 

 

 

 

 

(134

)

Accretion of discount on preferred stock

 

 

4

 

 

 

 

 

 

 

 

 

 

 

 

(4

)

 

 

 

 

 

 

 

 

 

 

 

 

Stock based compensation

 

 

 

 

 

 

 

 

 

 

 

216

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

216

 

Common stock issued upon termination

   of restricted stock unit plan,

   net of employee stock loans

 

 

 

 

 

203,216

 

 

 

2

 

 

 

222

 

 

 

 

 

 

 

 

 

(1,215

)

 

 

 

 

 

(991

)

Cash dividends declared and

   accrued on preferred stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(82

)

 

 

 

 

 

 

 

 

 

 

 

(82

)

Balance at June 30, 2015

 

$

16,363

 

 

 

6,270,727

 

 

$

78

 

 

$

98,836

 

 

$

29,756

 

 

$

(2,415

)

 

$

(1,215

)

 

$

(19,655

)

 

$

121,748

 

Balance at January 1, 2016

 

$

16,372

 

 

 

8,211,727

 

 

$

97

 

 

$

138,077

 

 

$

34,955

 

 

$

(2,371

)

 

$

(242

)

 

$

(19,655

)

 

$

167,233

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,286

 

 

 

 

 

 

 

 

 

 

 

 

6,286

 

Other comprehensive income,

   net of tax effects

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

639

 

 

 

 

 

 

 

 

 

639

 

Retirement of preferred stock

 

 

(16,372

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(16,372

)

Stock based compensation

 

 

 

 

 

 

 

 

 

 

 

282

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

282

 

Common stock issued upon exercise

   of stock options

 

 

 

 

 

7,688

 

 

 

 

 

 

121

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

121

 

Cash dividends declared and accrued

   on preferred stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

(1

)

Balance at June 30, 2016

 

$

 

 

 

8,219,415

 

 

$

97

 

 

$

138,480

 

 

$

41,240

 

 

$

(1,732

)

 

$

(242

)

 

$

(19,655

)

 

$

158,188

 

 

See accompanying condensed notes to interim consolidated financial statements.

 

 

8


EQUITY BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Six Months ended June 30, 2016 and 2015

(Dollar amounts in thousands, except per share data)

 

 

 

(Unaudited)

June 30,

 

 

 

2016

 

 

2015

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

Net income

 

$

6,286

 

 

$

5,010

 

Adjustments to reconcile net income to net cash from operating activities:

 

 

 

 

 

 

 

 

Stock based compensation

 

 

282

 

 

 

216

 

Depreciation

 

 

841

 

 

 

817

 

Provision for loan losses

 

 

1,255

 

 

 

1,330

 

Net accretion (amortization) of purchase valuation adjustments

 

 

192

 

 

 

(272

)

Amortization of premiums and discounts on securities

 

 

1,265

 

 

 

1,074

 

Amortization of intangibles

 

 

176

 

 

 

121

 

Deferred income taxes

 

 

(34

)

 

 

(57

)

FHLB stock dividends

 

 

(327

)

 

 

(96

)

Loss (gain) on sales and valuation adjustments on other real estate owned

 

 

(142

)

 

 

18

 

Net loss (gain) on securities transactions

 

 

(479

)

 

 

(370

)

Loss (gain) on disposal of premise and equipment

 

(39

)

 

 

(9

)

Loss (gain) on sales of loans

 

 

(496

)

 

 

(492

)

Originations of loans held for sale

 

 

(21,987

)

 

 

(22,341

)

Proceeds from the sale of loans held for sale

 

 

21,985

 

 

 

21,479

 

Increase in the value of bank owned life insurance

 

 

(497

)

 

 

(466

)

Change in fair value of derivatives recognized in earnings

 

 

4

 

 

 

16

 

Net change in:

 

 

 

 

 

 

 

 

Interest receivable

 

 

217

 

 

 

(389

)

Other assets

 

 

(314

)

 

 

4

 

Interest payable and other liabilities

 

 

(918

)

 

 

359

 

Net cash provided by (used in) operating activities

 

 

7,270

 

 

 

5,952

 

Cash flows to investing activities

 

 

 

 

 

 

 

 

Purchases of available-for-sale securities

 

 

(25,576

)

 

 

(44,543

)

Purchases of held-to-maturity securities

 

 

(25,811

)

 

 

(69,064

)

Proceeds from sales, calls, pay-downs, and maturities of available-for-sale securities

 

 

82,774

 

 

 

25,066

 

Proceeds from calls, pay-downs and maturities of held-to-maturity securities

 

 

19,677

 

 

 

23,419

 

Net change in interest-bearing time deposits in other banks

 

 

 

 

250

 

Net change in loans

 

 

(21,038

)

 

 

(107,860

)

Purchase of premises and equipment

 

 

(863

)

 

 

(5,117

)

Proceeds from sale of premise and equipment

 

175

 

 

 

15

 

Net redemption (purchase) of FHLB and FRB stock

 

 

465

 

 

 

(6,555

)

Proceeds from sale of other real estate owned

 

 

2,391

 

 

 

538

 

Net cash provided by (used in) investing activities

 

 

32,194

 

 

 

(183,851

)

Cash flows (to) from financing activities

 

 

 

 

 

 

 

 

Net increase (decrease) in deposits

 

 

(19,153

)