cstr-10q_20190630.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

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

For the quarterly period ended June 30, 2019

OR

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

For the transition period from _______ to ________.

Commission File Number:  001-37886

 

CAPSTAR FINANCIAL HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

 

 

Tennessee

81-1527911

(State or other jurisdiction of

incorporation or organization)

(IRS Employer

Identification No.)

 

 

1201 Demonbreun Street, Suite 700

Nashville, Tennessee

(Address of principal executive offices)

37203

(zip code)

 

(615) 732-6400

(Registrant’s telephone number, including area code)

 

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

 

Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of each class

 

Trading Symbol(s)

 

Name of each exchange

on which registered

Common Stock, $1.00 par

value per share

 

CSTR

 

Nasdaq Global Select Market

 

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

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

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

 

Large Accelerated Filer

 

Accelerated Filer

Non-Accelerated Filer

 

Smaller Reporting Company

 

 

 

Emerging Growth Company

 

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

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

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

 

Shares outstanding as of August 2, 2019

Common Stock, par value $1.00 per share

17,428,994

Non-voting Common Stock, par value $1.00 per share

132,561

 

 

 


CAPSTAR FINANCIAL HOLDINGS, INC.

QUARTERLY REPORT ON FORM 10-Q

TABLE OF CONTENTS

 

Item

 

 

Page

 

 

 

 

PART I – FINANCIAL INFORMATION

 

 

 

 

 

 

Item 1.

Consolidated Financial Statements

 

5

 

 

 

 

 

Consolidated Balance Sheets as of June 30, 2019 (Unaudited) and December 31, 2018

 

5

 

 

 

 

 

Consolidated Statements of Income (Unaudited) for the three and six months ended June 30, 2019 and 2018

 

6

 

 

 

 

 

Consolidated Statements of Comprehensive Income (Unaudited) for the three and six months ended June 30, 2019 and 2018

 

7

 

 

 

 

 

Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) for the six months ended June 30, 2019 and 2018

 

8

 

 

 

 

 

Consolidated Statements of Cash Flows (Unaudited) for the six months ended June 30, 2019 and 2018

 

9

 

 

 

 

 

Notes to Consolidated Financial Statements (Unaudited)

 

10

 

 

 

 

Item 2.

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

 

32

 

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

 

43

 

 

 

 

Item 4.

Controls and Procedures

 

44

 

 

 

PART II – OTHER INFORMATION

 

45

 

 

 

 

Item 1. 

Legal Proceedings

 

45

 

 

 

 

Item 1A.

Risk Factors

 

45

 

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

 

46

 

 

 

 

Item 6.

Exhibits

 

47

 

 

 

 

SIGNATURES

 

49

 

 

2


TERMINOLOGY

The terms “we,” “our,” “us,” “CapStar,” “the Company,” “CSTR” and “CapStar Financial” that appear in this Quarterly Report on Form 10-Q (this “Report”) refer to CapStar Financial Holdings, Inc. and its wholly-owned subsidiary, CapStar Bank, which we sometimes refer to as “CapStar Bank,” “our bank subsidiary,” “the Bank” and “our Bank”.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Report 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,” “aspire,” “roadmap,” “achieve,” “estimate,” “intend,” “plan,” “project,” “projection,” “forecast,” “goal,” “target,” “would,” and “outlook,” or the negative version 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. The inclusion of these forward-looking statements should not be regarded as a representation by us or any other person that such expectations, estimates and projections will be achieved. 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 and that are beyond our control. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date of this Report, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. 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 not limited to, the following:

The acceptance by customers of Athens of the Company’s products and services; the ability of the Company to meet expectations regarding the benefits, costs, synergies and financial and operational impact of the Athens merger; the possibility that any of the anticipated benefits, costs, synergies and financial and operational improvements of the Athens merger will not be realized or will not be realized as expected; the opportunities to enhance market share in certain markets and the acceptance of the Company generally in new markets; economic conditions (including interest rate environment, government economic and monetary policies, the strength of global financial markets and inflation and deflation) that impact the financial services industry as a whole and/or our business; the concentration of our business in the Nashville metropolitan statistical area (“MSA”) and Tennessee, and the effect of changes in the economic, political and environmental conditions on this market; increased competition in the financial services industry, locally, regionally or nationally, which may adversely affect pricing and the other terms offered to our clients; an increase in the cost of deposits, loss of deposits or a change in the deposit mix, which could increase our cost of funding; an increase in the costs of capital, which could negatively affect our ability to borrow funds, successfully raise additional capital or participate in strategic acquisition opportunities; fluctuations or differences in interest rates on loans or deposits from those that we are modeling, the impact to our earnings from a change in interest rates and our overall management of interest rate risk; our dependence on our management team and board of directors and changes in our management and board composition; our reputation in the community; our ability to execute our strategy to achieve our loan, ROAA and efficiency ratio goals, hire seasoned bankers, and achieve deposit growth through organic growth and strategic acquisitions; credit risks related to the size of our borrowers and our ability to adequately identify, assess and limit our credit risk; our concentration of large loans to a small number of borrowers as well as to borrowers located within the Nashville MSA and Tennessee; the significant portion of our loan portfolio that originated during the past two years and therefore may less reliably predict future collectability than older loans; the adequacy of reserves (including our allowance for loan losses) and the appropriateness of our methodology for calculating such reserves; non-performing loans and leases; non-performing assets; charge-offs, non-accruals, troubled debt restructurings, impairments and other credit-related issues; adverse trends in the healthcare service industry, which is an integral component of our market’s economy; our management of risks inherent in our commercial real estate loan portfolio, and the risk of a prolonged downturn in the real estate market, which could impair the value of our collateral and our ability to sell collateral upon any foreclosure; governmental legislation and regulation, including changes in the nature and timing of the adoption and effectiveness of new requirements under the Dodd-Frank Act of 2010, as amended, the Tax Cuts and Jobs Act of 2017, as amended, Basel guidelines, capital requirements, accounting regulation or standards and other applicable laws and regulations; the loss of large depositor relationships, which could force us to fund our business through more expensive and less stable sources; operational and liquidity risks associated with our business, including liquidity risks inherent in correspondent banking; the potential for our Bank’s regulatory lending limits and other factors related to our size to restrict our growth and prevent us from effectively implementing our business strategy; the ability to identify and consummate strategic acquisitions consistent with our goals; the sufficiency of our capital, including sources of capital and the extent to which we may be required to raise additional capital to meet our goals; fluctuations in the fair value of our investment securities that are beyond our control; deterioration in the fiscal position of the U.S. government and downgrades in Treasury and federal agency securities; potential exposure to fraud, negligence, computer theft and cyber-crime; the adequacy of our risk management framework; our dependence on our information technology and

3


telecommunications systems and the potential for any systems failures or interruptions; threats to and breaches of our information technology systems and data security, including cyber-attacks; our dependence upon outside third parties for the processing and handling of our records and data; our ability to adapt to technological change; the financial soundness of other financial institutions; our exposure to environmental liability risk associated with our lending activities; our engagement in derivative transactions; our involvement from time to time in legal proceedings and examinations and remedial actions by regulators; our involvement from time to time in litigation or other proceedings instituted by or against shareholders, customers, employees or third parties and the cost of legal fees associated with such litigation or proceedings; the susceptibility of our market to natural disasters and acts of God; and the effectiveness of our internal controls over financial reporting and our ability to remediate any future material weakness in our internal controls over financial reporting.

The foregoing factors should not be construed as exhaustive and should be read in conjunction with those factors that are detailed from time to time in the Company’s periodic and current reports filed with the Securities and Exchange Commission (the “SEC”), including those factors included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 under the heading “Item 1A. Risk Factors” and in the Company’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.  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 our forward-looking statements. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date of this Report, 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, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for us to predict their occurrence or how they will affect us.

 

 

4


PART I. FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements

CAPSTAR FINANCIAL HOLDINGS, INC. & SUBSIDIARY

Consolidated Balance Sheets

(Dollars in thousands, except share data)

 

 

 

June 30, 2019

 

 

 

 

 

 

 

(unaudited)

 

 

December 31, 2018

 

Assets

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

22,621

 

 

$

17,967

 

Interest-bearing deposits in financial institutions

 

 

133,464

 

 

 

76,714

 

Federal funds sold

 

 

 

 

 

10,762

 

Total cash and cash equivalents

 

 

156,085

 

 

 

105,443

 

Securities available-for-sale, at fair value

 

 

194,957

 

 

 

243,808

 

Securities held-to-maturity, fair value of $3,820, and $3,785 at

   June 30, 2019 and December 31, 2018, respectively

 

 

3,721

 

 

 

3,734

 

Loans held for sale (includes $37,604 and $0 measured

   at fair value at June 30, 2019 and December 31, 2018, respectively)

 

 

89,629

 

 

 

57,618

 

Loans

 

 

1,440,617

 

 

 

1,429,794

 

Less allowance for loan losses

 

 

(12,903

)

 

 

(12,113

)

Loans, net

 

 

1,427,714

 

 

 

1,417,681

 

Premises and equipment, net

 

 

19,503

 

 

 

18,821

 

Restricted equity securities

 

 

14,150

 

 

 

12,038

 

Accrued interest receivable

 

 

6,045

 

 

 

5,964

 

Goodwill

 

 

37,510

 

 

 

37,510

 

Core deposit intangible, net

 

 

7,689

 

 

 

8,538

 

Other real estate owned, net

 

 

914

 

 

 

988

 

Other assets

 

 

60,504

 

 

 

51,740

 

Total assets

 

$

2,018,421

 

 

$

1,963,883

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

Non-interest-bearing

 

$

326,550

 

 

$

289,552

 

Interest-bearing

 

 

491,137

 

 

 

434,921

 

Savings and money market accounts

 

 

508,443

 

 

 

497,108

 

Time

 

 

396,640

 

 

 

348,427

 

Total deposits

 

 

1,722,770

 

 

 

1,570,008

 

Federal Home Loan Bank advances

 

 

10,000

 

 

 

125,000

 

Other liabilities

 

 

22,987

 

 

 

14,496

 

Total liabilities

 

 

1,755,757

 

 

 

1,709,504

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

Series A convertible preferred stock, $1 par value; 5,000,000 shares authorized;

   878,049 shares issued and outstanding at June 30, 2019 and

   December 31, 2018

 

 

878

 

 

 

878

 

Common stock, voting, $1 par value; 20,000,000 shares authorized; 17,428,915 and

   17,592,160 shares issued and outstanding at June 30, 2019 and December 31,

   2018, respectively

 

 

17,429

 

 

 

17,592

 

Common stock, nonvoting, $1 par value; 5,000,000 shares authorized; 132,561

   shares issued and outstanding at June 30, 2019 and December 31, 2018

 

 

133

 

 

 

133

 

Additional paid-in capital

 

 

207,873

 

 

 

211,789

 

Retained earnings

 

 

36,165

 

 

 

27,303

 

Accumulated other comprehensive income (loss), net of income tax

 

 

186

 

 

 

(3,316

)

Total shareholders’ equity

 

 

262,664

 

 

 

254,379

 

Total liabilities and shareholders’ equity

 

$

2,018,421

 

 

$

1,963,883

 

 

See accompanying notes to consolidated financial statements (unaudited).

 

5


CAPSTAR FINANCIAL HOLDINGS, INC. & SUBSIDIARY

Consolidated Statements of Income (Unaudited)

(Dollars in thousands, except share data)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

20,999

 

 

$

13,796

 

 

$

41,591

 

 

$

26,030

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

1,165

 

 

 

943

 

 

 

2,512

 

 

 

1,823

 

Tax-exempt

 

 

363

 

 

 

257

 

 

 

739

 

 

 

538

 

Federal funds sold

 

 

6

 

 

 

19

 

 

 

25

 

 

 

39

 

Restricted equity securities

 

 

214

 

 

 

128

 

 

 

401

 

 

 

257

 

Interest-bearing deposits in financial institutions

 

 

411

 

 

 

211

 

 

 

857

 

 

 

411

 

Total interest income

 

 

23,158

 

 

 

15,354

 

 

 

46,125

 

 

 

29,098

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

 

1,827

 

 

 

892

 

 

 

3,420

 

 

 

1,646

 

Savings and money market accounts

 

 

1,782

 

 

 

1,413

 

 

 

3,500

 

 

 

2,418

 

Time deposits

 

 

2,217

 

 

 

834

 

 

 

4,030

 

 

 

1,483

 

Federal funds purchased

 

 

 

 

 

1

 

 

 

4

 

 

 

1

 

Securities sold under agreements to repurchase

 

 

 

 

 

 

 

 

5

 

 

 

 

Federal Home Loan Bank advances

 

 

324

 

 

 

627

 

 

 

1,156

 

 

 

1,117

 

Total interest expense

 

 

6,150

 

 

 

3,767

 

 

 

12,115

 

 

 

6,665

 

Net interest income

 

 

17,008

 

 

 

11,587

 

 

 

34,010

 

 

 

22,433

 

Provision for loan losses

 

 

 

 

 

169

 

 

 

886

 

 

 

846

 

Net interest income after provision for loan losses

 

 

17,008

 

 

 

11,418

 

 

 

33,124

 

 

 

21,587

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Treasury management and other deposit service charges

 

 

813

 

 

 

427

 

 

 

1,611

 

 

 

829

 

Net gain (loss) on sale of securities

 

 

(121

)

 

 

3

 

 

 

(108

)

 

 

3

 

Tri-Net fees

 

 

1,024

 

 

 

325

 

 

 

1,664

 

 

 

853

 

Mortgage banking income

 

 

3,087

 

 

 

1,383

 

 

 

4,472

 

 

 

2,695

 

Other noninterest income

 

 

2,229

 

 

 

627

 

 

 

4,128

 

 

 

1,474

 

Total noninterest income

 

 

7,032

 

 

 

2,765

 

 

 

11,767

 

 

 

5,854

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

8,563

 

 

 

6,340

 

 

 

16,995

 

 

 

12,598

 

Data processing and software

 

 

1,862

 

 

 

810

 

 

 

3,336

 

 

 

1,608

 

Professional fees

 

 

501

 

 

 

344

 

 

 

1,043

 

 

 

819

 

Occupancy

 

 

809

 

 

 

535

 

 

 

1,692

 

 

 

1,056

 

Equipment

 

 

1,026

 

 

 

602

 

 

 

1,878

 

 

 

1,141

 

Regulatory fees

 

 

272

 

 

 

233

 

 

 

546

 

 

 

436

 

Merger related expenses

 

 

1,711

 

 

 

335

 

 

 

2,305

 

 

 

335

 

Amortization of intangibles

 

 

419

 

 

 

10

 

 

 

850

 

 

 

20

 

Other operating

 

 

1,307

 

 

 

796

 

 

 

2,551

 

 

 

1,573

 

Total noninterest expense

 

 

16,470

 

 

 

10,005

 

 

 

31,196

 

 

 

19,586

 

Income before income taxes

 

 

7,570

 

 

 

4,178

 

 

 

13,695

 

 

 

7,855

 

Income tax expense

 

 

1,814

 

 

 

665

 

 

 

3,160

 

 

 

1,148

 

Net income

 

$

5,756

 

 

$

3,513

 

 

$

10,535

 

 

$

6,707

 

Per share information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income per share of common stock

 

$

0.33

 

 

$

0.30

 

 

$

0.59

 

 

$

0.57

 

Diluted net income per share of common stock

 

$

0.31

 

 

$

0.27

 

 

$

0.56

 

 

$

0.52

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

17,663,992

 

 

 

11,845,822

 

 

 

17,723,286

 

 

 

11,755,535

 

Diluted

 

 

18,650,706

 

 

 

13,067,223

 

 

 

18,740,322

 

 

 

13,021,744

 

 

See accompanying notes to consolidated financial statements (unaudited).

 

 

6


CAPSTAR FINANCIAL HOLDINGS, INC. & SUBSIDIARY

Consolidated Statements of Comprehensive Income (Unaudited)

(Dollars in thousands)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net income

 

$

5,756

 

 

$

3,513

 

 

$

10,535

 

 

$

6,707

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains (losses) on securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized holding gains (losses) arising during the period

 

 

2,125

 

 

 

(573

)

 

 

5,390

 

 

 

(4,927

)

Reclassification adjustment for (gains) losses included in

   net income

 

 

121

 

 

 

(3

)

 

 

108

 

 

 

(3

)

Tax effect

 

 

(588

)

 

 

151

 

 

 

(1,438

)

 

 

1,289

 

Net of tax

 

 

1,658

 

 

 

(425

)

 

 

4,060

 

 

 

(3,641

)

Unrealized losses on securities transferred to held-to-maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reclassification adjustment for losses included in

   net income

 

 

 

 

 

 

 

 

 

 

 

14

 

Tax effect

 

 

 

 

 

 

 

 

 

 

 

(4

)

Net of tax

 

 

 

 

 

 

 

 

 

 

 

10

 

Unrealized gains (losses) on cash flow hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized holding gains (losses) arising during the period

 

 

(461

)

 

 

144

 

 

 

(701

)

 

 

567

 

Reclassification adjustment for losses included in

   net income

 

 

165

 

 

 

224

 

 

 

362

 

 

 

475

 

Tax effect

 

 

(272

)

 

 

(54

)

 

 

(219

)

 

 

(189

)

Net of tax

 

 

(568

)

 

 

314

 

 

 

(558

)

 

 

853

 

Other comprehensive income (loss)

 

 

1,090

 

 

 

(111

)

 

 

3,502

 

 

 

(2,778

)

Comprehensive income

 

$

6,846

 

 

$

3,402

 

 

$

14,037

 

 

$

3,929

 

 

See accompanying notes to consolidated financial statements (unaudited).

 

 

7


CAPSTAR FINANCIAL HOLDINGS, INC. & SUBSIDIARY

Consolidated Statements of Changes in Shareholders’ Equity (Unaudited)

(Dollars in thousands, except share data)

 

 

 

Preferred

 

 

Common Stock,

voting

 

 

Common Stock,

nonvoting

 

 

Additional

paid-in

 

 

Retained

 

 

Accumulated

other

comprehensive

 

 

Total

shareholders’

 

 

 

stock

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

capital

 

 

earnings

 

 

income (loss)

 

 

equity

 

Balance December 31, 2017

 

$

878

 

 

 

11,449,465

 

 

$

11,450

 

 

 

132,561

 

 

$

133

 

 

$

118,120

 

 

$

18,892

 

 

$

(2,527

)

 

$

146,946

 

Issuance of restricted common

   stock, net of forfeitures and

   withholdings to satisfy

   employee tax obligations

 

 

 

 

 

24,729

 

 

 

25

 

 

 

 

 

 

 

 

 

(354

)

 

 

 

 

 

 

 

 

(329

)

Stock-based compensation

   expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

305

 

 

 

 

 

 

 

 

 

305

 

Exercise of employee

   common stock options

 

 

 

 

 

61,822

 

 

 

62

 

 

 

 

 

 

 

 

 

238

 

 

 

 

 

 

 

 

 

300

 

Exercise of common stock

   warrants

 

 

 

 

 

104,781

 

 

 

104

 

 

 

 

 

 

 

 

 

838

 

 

 

 

 

 

 

 

 

942

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,194

 

 

 

 

 

 

3,194

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,667

)

 

 

(2,667

)

Balance March 31, 2018

 

 

878

 

 

 

11,640,797

 

 

 

11,641

 

 

 

132,561

 

 

 

133

 

 

 

119,147

 

 

 

22,086

 

 

 

(5,194

)

 

 

148,691

 

Issuance of restricted common

   stock, net of forfeitures and

   withholdings to satisfy

   employee tax obligations

 

 

 

 

 

5,419

 

 

 

5

 

 

 

 

 

 

 

 

 

(29

)

 

 

 

 

 

 

 

 

(24

)

Stock-based compensation

   expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

325

 

 

 

 

 

 

 

 

 

325

 

Exercise of employee

   common stock options

 

 

 

 

 

106,550

 

 

 

106

 

 

 

 

 

 

 

 

 

791

 

 

 

 

 

 

 

 

 

897

 

Exercise of common stock

   warrants

 

 

 

 

 

45,804

 

 

 

47

 

 

 

 

 

 

 

 

 

321

 

 

 

 

 

 

 

 

 

368

 

Common and preferred dividends

   declared

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(513

)

 

 

 

 

 

(513

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,513

 

 

 

 

 

 

3,513

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(111

)

 

 

(111

)

Balance June 30, 2018

 

$

878

 

 

 

11,798,570

 

 

$

11,799

 

 

 

132,561

 

 

$

133

 

 

$

120,555

 

 

$

25,086

 

 

$

(5,305

)

 

$

153,146

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance December 31, 2018

 

$

878

 

 

 

17,592,160

 

 

$

17,592

 

 

 

132,561

 

 

$

133

 

 

$

211,789

 

 

$

27,303

 

 

$

(3,316

)

 

$

254,379

 

Issuance of restricted common

   stock, net of forfeitures and

   withholdings to satisfy

   employee tax obligations

 

 

 

 

 

13,801

 

 

 

14

 

 

 

 

 

 

 

 

 

(182

)

 

 

 

 

 

 

 

 

(168

)

Stock-based compensation

   expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

344

 

 

 

 

 

 

 

 

 

344

 

Exercise of employee

   common stock options

 

 

 

 

 

182,002

 

 

 

182

 

 

 

 

 

 

 

 

 

998

 

 

 

 

 

 

 

 

 

1,180

 

Repurchase of common stock

 

 

 

 

 

(155,400

)

 

 

(155

)

 

 

 

 

 

 

 

 

(2,276

)

 

 

 

 

 

 

 

 

(2,431

)

Common and preferred dividends

   declared