cstr-10q_20190930.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 September 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 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, 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  

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

 

Shares outstanding as of October 31, 2019

Common Stock, par value $1.00 per share

18,357,921

 

 

 

 

 


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 September 30, 2019 (Unaudited) and December 31, 2018

 

5

 

 

 

 

 

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

 

 

6

 

 

 

 

 

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

 

 

7

 

 

 

 

 

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

 

 

8

 

 

 

 

 

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

 

 

10

 

 

 

 

 

Notes to Consolidated Financial Statements (Unaudited)

 

11

 

 

 

 

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 5.

Other Information

 

47

 

 

 

 

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 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; 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; 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)

 

 

 

September 30, 2019

 

 

 

 

 

 

 

(unaudited)

 

 

December 31, 2018

 

Assets

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

24,289

 

 

$

17,967

 

Interest-bearing deposits in financial institutions

 

 

129,732

 

 

 

76,714

 

Federal funds sold

 

 

 

 

 

10,762

 

Total cash and cash equivalents

 

 

154,021

 

 

 

105,443

 

Securities available-for-sale, at fair value

 

 

203,500

 

 

 

243,808

 

Securities held-to-maturity, fair value of $3,412, and $3,785 at

   September 30, 2019 and December 31, 2018, respectively

 

 

3,319

 

 

 

3,734

 

Loans held for sale (includes $45,988 and $0 measured

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

 

 

129,613

 

 

 

57,618

 

Loans

 

 

1,411,768

 

 

 

1,429,794

 

Less allowance for loan losses

 

 

(12,828

)

 

 

(12,113

)

Loans, net

 

 

1,398,940

 

 

 

1,417,681

 

Premises and equipment, net

 

 

19,416

 

 

 

18,821

 

Restricted equity securities

 

 

13,900

 

 

 

12,038

 

Accrued interest receivable

 

 

5,780

 

 

 

5,964

 

Goodwill

 

 

37,510

 

 

 

37,510

 

Core deposit intangible, net

 

 

7,280

 

 

 

8,538

 

Other real estate owned, net

 

 

914

 

 

 

988

 

Other assets

 

 

59,718

 

 

 

51,740

 

Total assets

 

$

2,033,911

 

 

$

1,963,883

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

Non-interest-bearing

 

$

352,266

 

 

$

289,552

 

Interest-bearing

 

 

562,516

 

 

 

434,921

 

Savings and money market accounts

 

 

509,753

 

 

 

497,108

 

Time

 

 

307,228

 

 

 

348,427

 

Total deposits

 

 

1,731,763

 

 

 

1,570,008

 

Federal Home Loan Bank advances

 

 

10,000

 

 

 

125,000

 

Other liabilities

 

 

24,066

 

 

 

14,496

 

Total liabilities

 

 

1,765,829

 

 

 

1,709,504

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

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

  0 and 878,048 shares issued and outstanding at September 30, 2019 and

   December 31, 2018, respectively

 

 

 

 

 

878

 

Common stock, voting, $1 par value; 20,000,000 shares authorized; 18,343,403 and

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

   2018, respectively

 

 

18,343

 

 

 

17,592

 

Common stock, nonvoting, $1 par value; 5,000,000 shares authorized; 0 and 132,561

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

   respectively

 

 

 

 

 

133

 

Additional paid-in capital

 

 

206,757

 

 

 

211,789

 

Retained earnings

 

 

41,710

 

 

 

27,303

 

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

 

 

1,272

 

 

 

(3,316

)

Total shareholders’ equity

 

 

268,082

 

 

 

254,379

 

Total liabilities and shareholders’ equity

 

$

2,033,911

 

 

$

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

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

21,005

 

 

$

14,167

 

 

$

62,596

 

 

$

40,197

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

1,028

 

 

 

951

 

 

 

3,540

 

 

 

2,775

 

Tax-exempt

 

 

354

 

 

 

248

 

 

 

1,093

 

 

 

784

 

Federal funds sold

 

 

1

 

 

 

17

 

 

 

26

 

 

 

56

 

Restricted equity securities

 

 

183

 

 

 

132

 

 

 

584

 

 

 

389

 

Interest-bearing deposits in financial institutions

 

 

645

 

 

 

267

 

 

 

1,502

 

 

 

679

 

Total interest income

 

 

23,216

 

 

 

15,782

 

 

 

69,341

 

 

 

44,880

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

 

2,102

 

 

 

1,146

 

 

 

5,523

 

 

 

2,793

 

Savings and money market accounts

 

 

1,944

 

 

 

1,409

 

 

 

5,445

 

 

 

3,827

 

Time deposits

 

 

1,887

 

 

 

985

 

 

 

5,917

 

 

 

2,468

 

Federal funds purchased

 

 

 

 

 

1

 

 

 

4

 

 

 

3

 

Securities sold under agreements to repurchase

 

 

 

 

 

 

 

 

5

 

 

 

 

Federal Home Loan Bank advances

 

 

127

 

 

 

698

 

 

 

1,281

 

 

 

1,813

 

Total interest expense

 

 

6,060

 

 

 

4,239

 

 

 

18,175

 

 

 

10,904

 

Net interest income

 

 

17,156

 

 

 

11,543

 

 

 

51,166

 

 

 

33,976

 

Provision for loan losses

 

 

(125

)

 

 

481

 

 

 

761

 

 

 

1,328

 

Net interest income after provision for loan losses

 

 

17,281

 

 

 

11,062

 

 

 

50,405

 

 

 

32,648

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Treasury management and other deposit service charges

 

 

788

 

 

 

528

 

 

 

2,399

 

 

 

1,357

 

Net gain (loss) on sale of securities

 

 

 

 

 

(1

)

 

 

(108

)

 

 

2

 

Tri-Net fees

 

 

847

 

 

 

373

 

 

 

2,511

 

 

 

1,227

 

Mortgage banking income

 

 

2,679

 

 

 

1,634

 

 

 

7,151

 

 

 

4,329

 

Other noninterest income

 

 

2,474

 

 

 

684

 

 

 

6,602

 

 

 

2,157

 

Total noninterest income

 

 

6,788

 

 

 

3,218

 

 

 

18,555

 

 

 

9,072

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

9,229

 

 

 

6,514

 

 

 

26,224

 

 

 

19,111

 

Data processing and software

 

 

1,790

 

 

 

803

 

 

 

5,126

 

 

 

2,411

 

Professional fees

 

 

528

 

 

 

255

 

 

 

1,571

 

 

 

1,074

 

Occupancy

 

 

858

 

 

 

544

 

 

 

2,550

 

 

 

1,600

 

Equipment

 

 

1,012

 

 

 

520

 

 

 

2,890

 

 

 

1,661

 

Regulatory fees

 

 

18

 

 

 

228

 

 

 

564

 

 

 

664

 

Merger related expenses

 

 

187

 

 

 

540

 

 

 

2,491

 

 

 

875

 

Amortization of intangibles

 

 

408

 

 

 

3

 

 

 

1,258

 

 

 

23

 

Other operating

 

 

1,501

 

 

 

663

 

 

 

4,054

 

 

 

2,236

 

Total noninterest expense

 

 

15,531

 

 

 

10,070

 

 

 

46,728

 

 

 

29,655

 

Income before income taxes

 

 

8,538

 

 

 

4,210

 

 

 

22,232

 

 

 

12,065

 

Income tax expense

 

 

2,072

 

 

 

554

 

 

 

5,231

 

 

 

1,702

 

Net income

 

$

6,466

 

 

$

3,656

 

 

$

17,001

 

 

$

10,363

 

Per share information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income per share of common stock

 

$

0.36

 

 

$

0.30

 

 

$

0.96

 

 

$

0.87

 

Diluted net income per share of common stock

 

$

0.35

 

 

$

0.28

 

 

$

0.91

 

 

$

0.79

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

17,741,778

 

 

 

12,040,229

 

 

 

17,729,518

 

 

 

11,851,476

 

Diluted

 

 

18,532,479

 

 

 

13,113,775

 

 

 

18,670,280

 

 

 

13,052,758

 

 

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

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net income

 

$

6,466

 

 

$

3,656

 

 

$

17,001

 

 

$

10,363

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized holding gains (losses) arising during the period

 

 

1,112

 

 

 

(1,193

)

 

 

6,502

 

 

 

(6,120

)

Reclassification adjustment for (gains) losses included in

   net income

 

 

 

 

 

1

 

 

 

108

 

 

 

(2

)

Tax effect

 

 

(291

)

 

 

312

 

 

 

(1,729

)

 

 

1,600

 

Net of tax

 

 

821

 

 

 

(880

)

 

 

4,881

 

 

 

(4,522

)

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

 

 

 

 

 

129

 

 

 

(702

)

 

 

697

 

Reclassification adjustment for losses included in

   net income

 

 

265

 

 

 

224

 

 

 

627

 

 

 

698

 

Tax effect

 

 

 

 

 

(50

)

 

 

(218

)

 

 

(237

)

Net of tax

 

 

265

 

 

 

303

 

 

 

(293

)

 

 

1,158

 

Other comprehensive income (loss)

 

 

1,086

 

 

 

(577

)

 

 

4,588

 

 

 

(3,354

)

Comprehensive income

 

$

7,552

 

 

$

3,079

 

 

$

21,589

 

 

$

7,009

 

 

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, 2018

 

$

878

 

 

 

17,592,160

 

 

$

17,592

 

 

 

132,561

 

 

$

133

 

 

$

211,789

 

 

$

27,303

 

 

$

(3,316

)

 

$

254,379

 

Net issuance of restricted

   common stock

 

 

 

 

 

13,801

 

 

 

14

 

 

 

 

 

 

 

 

 

(182

)

 

 

 

 

 

 

 

 

(168

)

Stock-based compensation

   expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

344

 

 

 

 

 

 

 

 

 

344

 

Net exercise of

   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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(744

)

 

 

 

 

 

(744

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,779

 

 

 

 

 

 

4,779

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,412

 

 

 

2,412

 

Balance March 31, 2019

 

 

878

 

 

 

17,632,563

 

 

 

17,633

 

 

 

132,561

 

 

 

133

 

 

 

210,673

 

 

 

31,338

 

 

 

(904

)

 

 

259,751

 

Net issuance of restricted

   common stock

 

 

 

 

 

(6,826

)

 

 

(7

)

 

 

 

 

 

 

 

 

(6

)

 

 

 

 

 

 

 

 

(13

)

Stock-based compensation

   expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

340

 

 

 

 

 

 

 

 

 

340

 

Net exercise of

   common stock options

 

 

 

 

 

22,778

 

 

 

23

 

 

 

 

 

 

 

 

 

51

 

 

 

 

 

 

 

 

 

74

 

Repurchase of common stock

 

 

 

 

 

(219,600

)

 

 

(220

)

 

 

 

 

 

 

 

 

(3,185

)

 

 

 

 

 

 

 

 

(3,405

)

Common and preferred dividends

   declared

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(929

)

 

 

 

 

 

(929

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,756

 

 

 

 

 

 

5,756

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,090

 

 

 

1,090

 

Balance June 30, 2019

 

 

878

 

 

 

17,428,915

 

 

 

17,429

 

 

 

132,561

 

 

 

133

 

 

 

207,873

 

 

 

36,165

 

 

 

186

 

 

 

262,664

 

Net issuance of restricted

   common stock

 

 

 

 

 

(5,335

)

 

 

(6

)

 

 

 

 

 

 

 

 

(28

)

 

 

 

 

 

 

 

 

(34

)

Stock-based compensation

   expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

351

 

 

 

 

 

 

 

 

 

351

 

Net exercise of

   common stock options

 

 

 

 

 

39,000

 

 

 

39

 

 

 

 

 

 

 

 

 

431

 

 

 

 

 

 

 

 

 

470

 

Conversion of preferred stock to

   common stock

 

 

(878

)

 

 

878,048

 

 

 

878

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conversion of non-voting

   common stock to common

   stock

 

 

 

 

 

132,561

 

 

 

133

 

 

 

(132,561

)

 

 

(133

)

 

 

 

 

 

 

 

 

 

 

 

 

Repurchase of common stock

 

 

 

 

 

(129,786

)

 

 

(130