|
Colorado
(State or other jurisdiction
of incorporation or organization) |
| |
6022
(Primary Standard Industrial
Classification Code Number) |
| |
37-1442266
(I.R.S. Employer
Identification Number) |
|
|
Christian E. Otteson
Kurt A. Leeper Otteson Shapiro LLP 7979 E. Tufts Avenue, Suite 1600 Denver, Colorado 80237 Telephone: (720) 488-0220 |
| |
C. Ben Huber
Greenberg Traurig, LLP 1144 15th Street, Suite 3300 Denver, CO 80202 Telephone: (303) 572-6586 |
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|
Large Accelerated Filer
☐
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| |
Accelerated Filer
☒
|
|
|
Non-accelerated Filer
☐
|
| |
Smaller Reporting Company
☒
|
|
| | | |
Emerging Growth Company
☒
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Title of Each Class of Securities to be Registered
|
| | |
Amount
to be Registered(1) |
| | |
Proposed Maximum
Offering Price per Share |
| | |
Proposed Maximum
Aggregate Offering Price(2) |
| | |
Amount of
Registration Fee(3) |
| ||||||||||||
Common Stock, no par value
|
| | | | | 1,373,661 | | | | | | | N/A | | | | | | $ | 28,294,904 | | | | | | $ | 2,623 | | |
| | | | | 1 | | | |
| | | | | 7 | | | |
| | | | | 15 | | | |
| | | | | 21 | | | |
| | | | | 36 | | | |
| | | | | 38 | | | |
| | | | | 41 | | | |
| | | | | 42 | | | |
| | | | | 68 | | | |
| | | | | 83 | | | |
| | | | | 87 | | | |
| | | | | 94 | | | |
| | | | | 95 | | | |
| | | | | 96 | | | |
| | | | | 114 | | | |
| | | | | 115 | | | |
| | | | | 122 | | | |
| | | | | 123 | | | |
| | | | | 124 | | | |
| | | | | 125 | | | |
| | | | | 126 | | | |
| | | | | F-1 | | |
| | | Merger Agreement | | | | ||
| | | Wyoming Appraisal Rights Statute | | | | ||
| | | Opinion of Teton’s Financial Advisor | | | |
First Western Closing Price
|
| |
Total Merger Consideration
|
| |
Consideration Per Share of Teton
Common Stock(1) |
| |||
$21.50
|
| |
$41.0 million
|
| | | $ | 1.39 | | |
$26.46
|
| |
$47.8 million
|
| | | $ | 1.62 | | |
$28.41
|
| |
$50.5 million
|
| | | $ | 1.71 | | |
$29.08
|
| |
$51.4 million
|
| | | $ | 1.75 | | |
| | |
As of and for the Years Ended December 31,
|
| |||||||||||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |
2017
|
| |
2016
|
| |||||||||||||||
| | |
(dollars in thousands except per share)
|
| |||||||||||||||||||||||||||
Consolidated Statement of Income Data:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income
|
| | | $ | 53,334 | | | | | $ | 45,051 | | | | | $ | 38,796 | | | | | | 33,337 | | | | | $ | 29,520 | | |
Interest expense
|
| | | | 7,232 | | | | | | 12,990 | | | | | | 8,172 | | | | | | 5,761 | | | | | | 5,063 | | |
Net interest income
|
| | | | 46,102 | | | | | | 32,061 | | | | | | 30,624 | | | | | | 27,576 | | | | | | 24,457 | | |
Provision for loan losses
|
| | | | 4,682 | | | | | | 662 | | | | | | 180 | | | | | | 788 | | | | | | 985 | | |
Net interest income after provision for loan losses
|
| | | | 41,420 | | | | | | 31,399 | | | | | | 30,444 | | | | | | 26,788 | | | | | | 23,472 | | |
Noninterest income
|
| | | | 51,180 | | | | | | 32,577 | | | | | | 27,173 | | | | | | 27,713 | | | | | | 29,922 | | |
Noninterest expense
|
| | | | 59,537 | | | | | | 53,784 | | | | | | 50,195 | | | | | | 49,494 | | | | | | 49,823 | | |
Income before income taxes
|
| | | | 33,063 | | | | | | 10,192 | | | | | | 7,422 | | | | | | 5,007 | | | | | | 3,571 | | |
Income tax expense
|
| | | | 8,529 | | | | | | 2,183 | | | | | | 1,775 | | | | | | 2,984 | | | | | | 1,269 | | |
Net income
|
| | | $ | 24,534 | | | | | $ | 8,009 | | | | | $ | 5,647 | | | | | | 2,023 | | | | | $ | 2,302 | | |
Common Share Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic earnings (loss) per share
|
| | | $ | 3.11 | | | | | $ | 1.02 | | | | | $ | 0.64 | | | | | | (0.05) | | | | | $ | (0.11) | | |
Diluted earnings (loss) per share
|
| | | $ | 3.08 | | | | | $ | 1.01 | | | | | $ | 0.63 | | | | | | (0.05) | | | | | $ | (0.11) | | |
Cash dividends declared per share
|
| | | $ | — | | | | | $ | — | | | | | $ | 22.27 | | | | | | 37.03 | | | | | $ | 42.47 | | |
Book value per share
|
| | | $ | 19.49 | | | | | $ | 16.08 | | | | | $ | 14.67 | | | | | | 13.18 | | | | | $ | 12.74 | | |
Weighted average shares outstanding-basic
|
| | | | 7,899,278 | | | | | | 7,890,266 | | | | | | 6,712,754 | | | | | | 5,586,620 | | | | | | 5,120,507 | | |
Weighted average shares outstanding-diluted
|
| | | | 7,961,904 | | | | | | 7,914,961 | | | | | | 6,754,258 | | | | | | 5,586,620 | | | | | | 5,120,507 | | |
Shares outstanding at end of period
|
| | | | 7,951,773 | | | | | | 7,940,168 | | | | | | 7,968,420 | | | | | | 5,833,456 | | | | | | 5,529,542 | | |
Consolidated Balance Sheet Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 155,989 | | | | | $ | 78,638 | | | | | $ | 73,357 | | | | | $ | 9,502 | | | | | $ | 62,685 | | |
Investment securities
|
| | | $ | 36,666 | | | | | $ | 58,903 | | | | | $ | 43,695 | | | | | $ | 53,650 | | | | | $ | 97,655 | | |
Gross loans(a)
|
| | | $ | 1,532,833 | | | | | $ | 998,007 | | | | | $ | 893,966 | | | | | $ | 813,689 | | | | | $ | 672,815 | | |
Allowance for loan losses
|
| | | $ | 12,539 | | | | | $ | 7,875 | | | | | $ | 7,451 | | | | | $ | 7,287 | | | | | $ | 6,478 | | |
Total assets
|
| | | $ | 1,973,655 | | | | | $ | 1,251,682 | | | | | $ | 1,084,324 | | | | | $ | 969,659 | | | | | $ | 915,998 | | |
Total deposits
|
| | | $ | 1,619,910 | | | | | $ | 1,086,784 | | | | | $ | 937,758 | | | | | $ | 816,117 | | | | | $ | 753,900 | | |
Total borrowings and debt
|
| | | $ | 173,854 | | | | | $ | 16,560 | | | | | $ | 21,560 | | | | | $ | 41,998 | | | | | $ | 54,899 | | |
Shareholders’ equity
|
| | | $ | 154,962 | | | | | $ | 127,678 | | | | | $ | 116,875 | | | | | $ | 101,846 | | | | | $ | 95,928 | | |
Average Balance Sheet Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Average assets
|
| | | $ | 1,659,243 | | | | | $ | 1,182,366 | | | | | $ | 1,020,520 | | | | | $ | 954,771 | | | | | $ | 894,843 | | |
Average earning assets
|
| | | $ | 1,493,784 | | | | | $ | 1,070,869 | | | | | $ | 935,744 | | | | | $ | 874,912 | | | | | $ | 798,153 | | |
Average shareholders’ equity
|
| | | $ | 141,877 | | | | | $ | 123,034 | | | | | $ | 109,017 | | | | | $ | 99,988 | | | | | $ | 90,358 | | |
Financial Ratios: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Return on average assets(b)
|
| | | | 1.48% | | | | | | 0.68% | | | | | | 0.55% | | | | | | 0.21% | | | | | | 0.26% | | |
Return on average equity(c)
|
| | | | 17.29% | | | | | | 6.51% | | | | | | 5.18% | | | | | | 2.02% | | | | | | 2.55% | | |
Net interest margin(d)
|
| | | | 3.09% | | | | | | 2.99% | | | | | | 3.27% | | | | | | 3.15% | | | | | | 3.06% | | |
Efficiency ratio(e)
|
| | | | 60.50% | | | | | | 80.57% | | | | | | 85.41% | | | | | | 88.23% | | | | | | 90.44% | | |
| | |
As of and for the Years Ended December 31,
|
| |||||||||||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |
2017
|
| |
2016
|
| |||||||||||||||
Nonperforming Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Nonperforming assets to total assets
|
| | | | 0.22% | | | | | | 1.03% | | | | | | 1.82% | | | | | | 0.50% | | | | | | 0.70% | | |
Nonperforming loans to loans held for investment, net of unearned income
|
| | | | 0.26% | | | | | | 1.23% | | | | | | 2.13% | | | | | | 0.52% | | | | | | 0.54% | | |
Allowance for loan losses to loans held for investment, net of unearned income
|
| | | | 0.82% | | | | | | 0.79% | | | | | | 0.83% | | | | | | 0.90% | | | | | | 0.96% | | |
Allowance for loan losses to nonperforming loans
|
| | | | 308.99% | | | | | | 64.18% | | | | | | 39.11% | | | | | | 172.55% | | | | | | 179.60% | | |
Net loan charge-offs to average loans
|
| | | | —% | | | | | | 0.03% | | | | | | —% | | | | | | —% | | | | | | 0.07% | | |
| | |
As of and for the Years Ended December 31,
|
| |||||||||||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |
2017
|
| |
2016
|
| |||||||||||||||
| | |
(dollars in thousands)
|
| |||||||||||||||||||||||||||
Efficiency | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total noninterest expense
|
| | | $ | 59,537 | | | | | $ | 53,784 | | | | | $ | 50,195 | | | | | $ | 49,494 | | | | | $ | 49,823 | | |
Less: Amortization
|
| | | | 14 | | | | | | 374 | | | | | | 831 | | | | | | 784 | | | | | | 747 | | |
Goodwill impairment
|
| | | | — | | | | | | 1,572 | | | | | | — | | | | | | — | | | | | | — | | |
Provision on other real estate owned
|
| | | | 176 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Loss on assets held for sale
|
| | | | 553 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Plus: Gain on sale of LA fixed income team
|
| | | | (62) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Adjusted non-interest expense
|
| | | $ | 58,856 | | | | | $ | 51,838 | | | | | $ | 49,364 | | | | | $ | 48,710 | | | | | $ | 49,076 | | |
Net interest income
|
| | | $ | 46,102 | | | | | $ | 32,061 | | | | | $ | 30,624 | | | | | $ | 27,576 | | | | | $ | 24,457 | | |
Noninterest income
|
| | | | 51,180 | | | | | | 32,577 | | | | | | 27,173 | | | | | | 27,713 | | | | | | 29,922 | | |
Less: Gain on sale of securities
|
| | | | — | | | | | | 119 | | | | | | — | | | | | | 81 | | | | | | 114 | | |
Gain on sale of assets
|
| | | | — | | | | | | 183 | | | | | | — | | | | | | — | | | | | | — | | |
Adjusted total income
|
| | | $ | 97,282 | | | | | $ | 64,336 | | | | | $ | 57,797 | | | | | $ | 55,208 | | | | | $ | 54,265 | | |
Efficiency Ratio
|
| | | | 60.50% | | | | | | 80.57% | | | | | | 85.41% | | | | | | 88.23% | | | | | | 90.44% | | |
| | |
As of and for the Six Months Ended June 30,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
| | |
(dollars in thousands except per share)
|
| |||||||||
Consolidated Statement of Income Data: | | | | | | | | | | | | | |
Interest income
|
| | | $ | 30,047 | | | | | $ | 23,982 | | |
Interest expense
|
| | | | 2,771 | | | | | | 4,255 | | |
Net interest income
|
| | | | 27,276 | | | | | | 19,727 | | |
Provision for loan losses
|
| | | | 12 | | | | | | 2,491 | | |
Net interest income after provision for loan losses
|
| | | | 27,264 | | | | | | 17,236 | | |
Noninterest income
|
| | | | 20,113 | | | | | | 23,194 | | |
Noninterest expense
|
| | | | 31,150 | | | | | | 27,291 | | |
Income before income taxes
|
| | | | 16,227 | | | | | | 13,139 | | |
Income tax expense
|
| | | | 3,951 | | | | | | 3,109 | | |
Net income
|
| | | $ | 12,276 | | | | | $ | 10,030 | | |
Common Share Data: | | | | | | | | | | | | | |
Basic earnings per share
|
| | | $ | 1.54 | | | | | $ | 1.27 | | |
Diluted earnings per share
|
| | | $ | 1.50 | | | | | $ | 1.26 | | |
Cash dividends declared per share
|
| | | $ | — | | | | | $ | — | | |
Book value per share
|
| | | $ | 21.01 | | | | | $ | 17.56 | | |
Weighted average shares outstanding-basic
|
| | | | 7,948,796 | | | | | | 7,876,951 | | |
Weighted average shares outstanding-diluted
|
| | | | 8,160,259 | | | | | | 7,929,566 | | |
Shares outstanding at end of period
|
| | | | 7,994,832 | | | | | | 7,939,024 | | |
Consolidated Balance Sheet Data: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 289,089 | | | | | $ | 191,676 | | |
Investment securities
|
| | | | 25,532 | | | | | | 47,018 | | |
Gross loans(a)
|
| | | | 1,571,060 | | | | | | 1,422,440 | | |
Allowance for loan losses
|
| | | | 12,552 | | | | | | 10,354 | | |
Total assets
|
| | | | 2,009,304 | | | | | | 1,810,526 | | |
Total deposits
|
| | | | 1,679,053 | | | | | | 1,406,932 | | |
Total borrowings and debt
|
| | | | 145,023 | | | | | | 236,757 | | |
Shareholders’ equity
|
| | | | 167,986 | | | | | | 139,417 | | |
Average Balance Sheet Data: | | | | | | | | | | | | | |
Average assets
|
| | | $ | 2,062,368 | | | | | $ | 1,398,221 | | |
Average earning assets
|
| | | $ | 1,846,842 | | | | | $ | 1,266,632 | | |
Average shareholders’ equity
|
| | | $ | 163,002 | | | | | $ | 133,582 | | |
Financial Ratios: | | | | | | | | | | | | | |
Return on average assets(b)
|
| | | | 0.60% | | | | | | 1.43% | | |
Return on average equity(c)
|
| | | | 7.53% | | | | | | 15.02% | | |
Net interest margin(d)
|
| | | | 2.95% | | | | | | 3.11% | | |
Efficiency ratio(e)
|
| | | | 65.72% | | | | | | 62.20% | | |
Nonperforming Assets | | | | | | | | | | | | | |
Nonperforming assets to total assets
|
| | | | 0.16% | | | | | | 0.67% | | |
Nonperforming loans to loans held for investment, net of unearned income
|
| | | | 0.20% | | | | | | 0.81% | | |
Allowance for loan losses to loans held for investment, net of unearned income
|
| | | | 0.80% | | | | | | 0.73% | | |
Allowance for loan losses to nonperforming loans
|
| | | | 402.31% | | | | | | 90.40% | | |
Net loan charge-offs to average loans
|
| | | | —% | | | | | | —% | | |
| | |
As of and for the Six Months Ended June 30,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
| | |
(dollars in thousands)
|
| |||||||||
Efficiency Ratio | | | | | | | | | | | | | |
Total noninterest expense
|
| | | $ | 31,150 | | | | | $ | 27,291 | | |
Less: Amortization
|
| | | | 8 | | | | | | 40 | | |
Less: Loss on assets held for sale
|
| | | | — | | | | | | 553 | | |
Adjusted non-interest expense
|
| | | $ | 31,142 | | | | | $ | 26,698 | | |
Net interest income
|
| | | $ | 27,276 | | | | | $ | 19,727 | | |
Noninterest income
|
| | | | 20,113 | | | | | | 23,194 | | |
Less: Gain on sale of securities
|
| | | | — | | | | | | — | | |
Gain on sale of assets
|
| | | | — | | | | | | — | | |
Adjusted total income
|
| | | $ | 47,389 | | | | | $ | 42,921 | | |
Efficiency Ratio
|
| | | | 65.72% | | | | | | 62.20% | | |
| | |
First
Western Historical |
| |
Teton
Historical |
| |
Transaction
Accounting Adjustments |
| | | | |
Other
Adjustments (Note 5) |
| |
Pro Forma
Combined |
| |||||||||||||||
ASSETS: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 289,089 | | | | | $ | 124,202 | | | | | $ | (11,496) | | | |
A
|
| | | $ | 12,452 | | | | | $ | 414,247 | | |
Debt securities available for sale, at fair
value |
| | | | 25,532 | | | | | | 14,487 | | | | | | — | | | | | | | | | — | | | | | | 40,019 | | |
Loans held for sale
|
| | | | 48,563 | | | | | | 1,062 | | | | | | — | | | | | | | | | — | | | | | | 49,625 | | |
Loans held for investment, net of unearned income
|
| | | | 1,571,060 | | | | | | 266,812 | | | | | | (5,790) | | | |
B
|
| | | | — | | | | | | 1,832,082 | | |
Less: allowance for loan losses
|
| | | | 12,552 | | | | | | 5,426 | | | | | | (5,426) | | | |
C
|
| | | | — | | | | | | 12,552 | | |
Loans held for investment, net
|
| | | | 1,558,508 | | | | | | 261,386 | | | | | | (364) | | | | | | | | | — | | | | | | 1,819,530 | | |
Premises and equipment, net
|
| | | | 5,885 | | | | | | — | | | | | | 3,800 | | | |
D
|
| | | | — | | | | | | 9,685 | | |
Goodwill
|
| | | | 24,191 | | | | | | 2,150 | | | | | | 6,465 | | | |
E
|
| | | | — | | | | | | 32,806 | | |
Other intangible assets, net
|
| | | | 59 | | | | | | — | | | | | | 1,718 | | | |
F
|
| | | | — | | | | | | 1,777 | | |
Other real estate owned
|
| | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | — | | |
Other assets
|
| | | | 57,477 | | | | | | 17,365 | | | | | | (1,238) | | | |
G
|
| | | | — | | | | | | 73,604 | | |
Total assets
|
| | | $ | 2,009,304 | | | | | $ | 420,652 | | | | | $ | (1,115) | | | | | | | | $ | 12,452 | | | | | $ | 2,441,293 | | |
LIABILITIES AND SHAREHOLDER’S EQUITY
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits
|
| | | $ | 1,679,053 | | | | | $ | 374,450 | | | | | $ | — | | | | | | | | $ | — | | | | | $ | 2,053,503 | | |
Federal funds purchased
|
| | | | 120,762 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | 120,762 | | |
Subordinated notes
|
| | | | 24,261 | | | | | | 3,593 | | | | | | — | | | | | | | | | 11,107 | | | | | | 38,961 | | |
Other Liabilities
|
| | | | 17,242 | | | | | | 2,795 | | | | | | 1,775 | | | |
H
|
| | | | — | | | | | | 21,812 | | |
Total Liabilities
|
| | | | 1,841,318 | | | | | | 380,838 | | | | | | 1,775 | | | | | | | | | 11,107 | | | | | | 2,235,038 | | |
Shareholder’s equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common stock
|
| | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | — | | |
Additional paid-in capital
|
| | | | 145,622 | | | | | | 28,155 | | | | | | 8,750 | | | |
I
|
| | | | 2,121 | | | | | | 184,648 | | |
Retained Earnings
|
| | | | 21,855 | | | | | | 11,430 | | | | | | (11,411) | | | |
J
|
| | | | (776) | | | | | | 21,098 | | |
Accumulated other comprehensive
income |
| | | | 509 | | | | | | 229 | | | | | | (229) | | | |
K
|
| | | | — | | | | | | 509 | | |
Total shareholder’s equity
|
| | | | 167,986 | | | | | | 39,814 | | | | | | (2,890) | | | | | | | | | 1,345 | | | | | | 206,255 | | |
Total liabilities and shareholder’s
equity |
| | | $ | 2,009,304 | | | | | $ | 420,652 | | | | | $ | (1,115) | | | | | | | | $ | 12,452 | | | | | $ | 2,441,293 | | |
| | |
First
Western Historical |
| |
Teton
Historical |
| |
Transaction
Accounting Adjustments |
| | | | |
Other
Adjustments (Note 5) |
| |
Pro Forma
Combined |
| |||||||||||||||
INTEREST INCOME: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans
|
| | | $ | 51,998 | | | | | $ | 12,930 | | | | | $ | 242 | | | |
B
|
| | | $ | — | | | | | $ | 65,170 | | |
Taxable Securities
|
| | | | 878 | | | | | | 573 | | | | | | (72) | | | |
K
|
| | | | — | | | | | | 1,379 | | |
Other
|
| | | | 458 | | | | | | 243 | | | | | | — | | | | | | | | | — | | | | | | 701 | | |
Total Interest Income
|
| | | | 53,334 | | | | | | 13,746 | | | | | | 170 | | | | | | | | | — | | | | | | 67,250 | | |
INTEREST EXPENSE: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits
|
| | | | 5,794 | | | | | | 1,690 | | | | | | — | | | | | | | | | — | | | | | | 7,484 | | |
Other borrowings
|
| | | | 1,438 | | | | | | 216 | | | | | | — | | | | | | | | | 332 | | | | | | 1,986 | | |
Total Interest Expense
|
| | | | 7,232 | | | | | | 1,906 | | | | | | — | | | | | | | | | 332 | | | | | | 9,470 | | |
Net interest income
|
| | | | 46,102 | | | | | | 11,840 | | | | | | 170 | | | | | | | | | (332) | | | | | | 57,780 | | |
Provision for (reversal of) loan losses
|
| | | | 4,682 | | | | | | 4,600 | | | | | | — | | | | | | | | | — | | | | | | 9,282 | | |
Net interest income after provision for loan losses
|
| | | | 41,420 | | | | | | 7,240 | | | | | | 170 | | | | | | | | | (332) | | | | | | 48,498 | | |
NONINTEREST INCOME: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Trust and investment management
fees |
| | | | 19,022 | | | | | | 112 | | | | | | — | | | | | | | | | — | | | | | | 19,134 | | |
Net gain on mortgage loans
|
| | | | 29,276 | | | | | | 1,020 | | | | | | — | | | | | | | | | — | | | | | | 30,296 | | |
Bank fees
|
| | | | 1,320 | | | | | | 157 | | | | | | — | | | | | | | | | — | | | | | | 1,477 | | |
Risk management and insurance fees
|
| | | | 1,199 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | 1,199 | | |
Income on company-owned life insurance
|
| | | | 363 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | 363 | | |
Other
|
| | | | — | | | | | | 545 | | | | | | — | | | | | | | | | — | | | | | | 381 | | |
Total noninterest income
|
| | | | 51,180 | | | | | | 1,834 | | | | | | — | | | | | | | | | — | | | | | | 52,850 | | |
NONINTEREST EXPENSE: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits
|
| | | | 34,785 | | | | | | 4,534 | | | | | | — | | | | | | | | | — | | | | | | 39,319 | | |
Net occupancy and equipment
expense |
| | | | 6,009 | | | | | | 743 | | | | | | 190 | | | |
D
|
| | | | — | | | | | | 6,942 | | |
Professional fees
|
| | | | 5,035 | | | | | | 451 | | | | | | 2,302 | | | |
H
|
| | | | — | | | | | | 7,788 | | |
Data processing expense
|
| | | | 4,000 | | | | | | 973 | | | | | | — | | | | | | | | | — | | | | | | 4,973 | | |
Technology and information systems
|
| | | | 4,035 | | | | | | 269 | | | | | | — | | | | | | | | | — | | | | | | 4,304 | | |
Amortization of intangibles
|
| | | | 14 | | | | | | 31 | | | | | | 312 | | | |
F
|
| | | | — | | | | | | 357 | | |
Other
|
| | | | 5,659 | | | | | | 967 | | | | | | — | | | | | | | | | — | | | | | | 6,462 | | |
Total noninterest expense
|
| | | | 59,537 | | | | | | 7,968 | | | | | | 2,804 | | | | | | | | | — | | | | | | 70,145 | | |
Income before income taxes
|
| | | | 33,063 | | | | | | 1,106 | | | | | | (2,634) | | | | | | | | | (332) | | | | | | 31,203 | | |
Income tax provision
|
| | | | 8,529 | | | | | | 254 | | | | | | (607) | | | |
L
|
| | | | (80) | | | | | | 8,096 | | |
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS
|
| | | $ | 24,534 | | | | | $ | 852 | | | | | $ | (2,027) | | | | | | | | $ | (252) | | | | | $ | 23,107 | | |
Per common share | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings basic
|
| | | $ | 3.11 | | | | | $ | 0.03 | | | | | $ | 0.07 | | | | | | | | | | | | | | $ | 2.49 | | |
Earnings diluted
|
| | | $ | 3.08 | | | | | $ | 0.03 | | | | | $ | 0.07 | | | | | | | | | | | | | | $ | 2.48 | | |
Weighted average number of common shares outstanding
|
| | | | 7,899,278 | | | | | | 29,477,707 | | | | | | -28,104,046 | | | | | | | | | | | | | | | 9,272,939 | | |
Weighted average number of diluted common shares outstanding
|
| | | | 7,961,904 | | | | | | 29,477,707 | | | | | | -28,104,046 | | | | | | | | | | | | | | | 9,335,565 | | |
| | |
First
Western Historical |
| |
Teton
Historical |
| |
Transaction
Accounting Adjustments |
| | | | |
Other
Adjustments (Note 5) |
| |
Pro Forma
Combined |
| |||||||||||||||
INTEREST INCOME: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans
|
| | | $ | 29,499 | | | | | $ | 6,265 | | | | | $ | 121 | | | |
B
|
| | | $ | — | | | | | $ | 35,885 | | |
Taxable Securities
|
| | | | 365 | | | | | | 191 | | | | | | (36) | | | |
K
|
| | | | — | | | | | | 520 | | |
Other
|
| | | | 183 | | | | | | 73 | | | | | | — | | | | | | | | | — | | | | | | 256 | | |
Total Interest Income
|
| | | | 30,047 | | | | | | 6,529 | | | | | | 85 | | | | | | | | | — | | | | | | 36,661 | | |
INTEREST EXPENSE: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits
|
| | | | 1,840 | | | | | | 394 | | | | | | — | | | | | | | | | — | | | | | | 2,234 | | |
Other borrowings
|
| | | | 931 | | | | | | 107 | | | | | | — | | | | | | | | | 166 | | | | | | 1,204 | | |
Total Interest Expense
|
| | | | 2,771 | | | | | | 501 | | | | | | — | | | | | | | | | 166 | | | | | | 3,438 | | |
Net interest income
|
| | | | 27,276 | | | | | | 6,028 | | | | | | 85 | | | | | | | | | (166) | | | | | | 33,223 | | |
Provision for (reversal of) loan losses
|
| | | | 12 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | 12 | | |
Net interest income after provision for loan losses
|
| | | | 27,264 | | | | | | 6,028 | | | | | | 85 | | | | | | | | | (166) | | | | | | 33,211 | | |
NONINTEREST INCOME: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Trust and investment management
fees |
| | | | 9,856 | | | | | | 176 | | | | | | — | | | | | | | | | — | | | | | | 10,032 | | |
Net gain on mortgage loans
|
| | | | 9,110 | | | | | | 627 | | | | | | — | | | | | | | | | — | | | | | | 9,737 | | |
Bank fees
|
| | | | 767 | | | | | | 67 | | | | | | — | | | | | | | | | — | | | | | | 834 | | |
Risk management and insurance fees
|
| | | | 143 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | 143 | | |
Income on company-owned life insurance
|
| | | | 177 | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | 177 | | |
Other
|
| | | | 60 | | | | | | 376 | | | | | | — | | | | | | | | | — | | | | | | 436 | | |
Total noninterest income
|
| | | | 20,113 | | | | | | 1,246 | | | | | | — | | | | | | | | | — | | | | | | 21,359 | | |
NONINTEREST EXPENSE: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits
|
| | | | 19,504 | | | | | | 2,544 | | | | | | — | | | | | | | | | — | | | | | | 22,048 | | |
Net occupancy and equipment
expense |
| | | | 2,852 | | | | | | 385 | | | | | | 95 | | | |
D
|
| | | | — | | | | | | 3,332 | | |
Professional fees
|
| | | | 2,649 | | | | | | 296 | | | | | | — | | | | | | | | | — | | | | | | 2,945 | | |
Data processing expense
|
| | | | 2,108 | | | | | | 64 | | | | | | — | | | | | | | | | — | | | | | | 2,172 | | |
Technology and information systems
|
| | | | 1,846 | | | | | | 572 | | | | | | — | | | | | | | | | — | | | | | | 2,418 | | |
Amortization of intangibles
|
| | | | 8 | | | | | | — | | | | | | 156 | | | |
F
|
| | | | — | | | | | | 164 | | |
Other
|
| | | | 2,183 | | | | | | 361 | | | | | | — | | | | | | | | | — | | | | | | 2,544 | | |
Total noninterest expense
|
| | | | 31,150 | | | | | | 4,222 | | | | | | 251 | | | | | | | | | — | | | | | | 35,623 | | |
Income before income taxes
|
| | | | 16,227 | | | | | | 3,052 | | | | | | (166) | | | | | | | | | (166) | | | | | | 18,947 | | |
Income tax provision
|
| | | | 3,951 | | | | | | 684 | | | | | | (40) | | | |
L
|
| | | | (40) | | | | | | 4,555 | | |
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS
|
| | | $ | 12,276 | | | | | $ | 2,368 | | | | | $ | (126) | | | | | | | | $ | (126) | | | | | $ | 14,392 | | |
Per common share
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings basic
|
| | | $ | 1.54 | | | | | $ | 0.08 | | | | | $ | 0.00 | | | | | | | | | | | | | | $ | 1.54 | | |
Earnings diluted
|
| | | $ | 1.50 | | | | | $ | 0.08 | | | | | $ | 0.00 | | | | | | | | | | | | | | $ | 1.51 | | |
Weighted average number of common shares outstanding
|
| | | | 7,948,796 | | | | | | 29,477,707 | | | | | | -28,104,046 | | | | | | | | | | | | | | | 9,322,457 | | |
Weighted average number of diluted common shares outstanding
|
| | | | 8,160,259 | | | | | | 29,477,707 | | | | | | -28,104,046 | | | | | | | | | | | | | | | 9,533,920 | | |
|
Estimated Teton shares outstanding*
|
| | | | 29,477,707 | | |
|
Cash consideration per Teton share
|
| | | $ | 0.39 | | |
|
Estimated cash portion of purchase price
|
| | | $ | 11,496 | | |
|
Estimated Teton shares outstanding*
|
| | | | 29,477,707 | | |
|
Exchange ratio
|
| | | | 0.0466 | | |
|
Total First Western common shares issued
|
| | | | 1,373,661 | | |
|
First Western share price**
|
| | | $ | 28.41 | | |
|
Equity portion of purchase price
|
| | | | 39,026 | | |
|
Total estimated consideration to be paid
|
| | | $ | 50,526 | | |
|
Consideration per share of Teton shares outstanding
|
| | | $ | 1.71 | | |
|
First Western Closing Price
|
| |
Total Merger Consideration
|
| |
Consideration Per Share of
Teton Common Stock(1) |
| ||||||
|
$21.50
|
| | | $ | 41.0 million | | | | | $ | 1.39 | | |
|
$26.46
|
| | | $ | 47.8 million | | | | | $ | 1.62 | | |
|
$28.41
|
| | | $ | 50.5 million | | | | | $ | 1.71 | | |
|
$29.08
|
| | | $ | 51.4 million | | | | | $ | 1.75 | | |
(unaudited)
|
| |
First Western
|
| |
Teton
|
| |
Combined
Pro Forma |
| |
Per Equivalent
Teton Share(1) |
| ||||||||||||
Book value per share | | | | | | | | | | | | | | | | | | | | | | | | | |
As of June 30, 2021
|
| | | $ | 21.27 | | | | | $ | 1.35 | | | | | $ | 22.24 | | | | | $ | 1.04 | | |
Cash dividends | | | | | | | | | | | | | | | | | | | | | | | | | |
For the year ended December 31, 2020
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
For the six months ended June 30, 2021
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Basic income from continuing operations | | | | | | | | | | | | | | | | | | | | | | | | | |
For the year ended December 31, 2020
|
| | | $ | 3.11 | | | | | $ | 0.03 | | | | | $ | 2.49 | | | | | $ | 0.12 | | |
For the six months ended June 30, 2021
|
| | | $ | 1.54 | | | | | $ | 0.08 | | | | | $ | 1.54 | | | | | $ | 0.07 | | |
Diluted income from continuing operations | | | | | | | | | | | | | | | | | | | | | | | | | |
For the year ended December 31, 2020
|
| | | $ | 3.08 | | | | | $ | 0.03 | | | | | $ | 2.48 | | | | | $ | 0.12 | | |
For the six months ended June 30, 2021
|
| | | $ | 1.50 | | | | | $ | 0.08 | | | | | $ | 1.51 | | | | | $ | 0.07 | | |
| | |
First Western
Common Stock ClosingPrice |
| |
Equivalent Market Value
per Share of Teton Common Stock |
| ||||||
July 21, 2021
|
| | | $ | 26.46 | | | | | $ | 1.62 | | |
September 29, 2021
|
| | | $ | 28.41 | | | | | $ | 1.71 | | |
| | |
High
|
| |
Low
|
| |
Cash Dividends
Declared |
| |||||||||
Year/Quarter: | | | | | | | | | | | | | | | | | | | |
2021
|
| | | | | | | | | | | | | | | | | | |
Third quarter(1)
|
| | | $ | 29.40 | | | | | $ | 24.62 | | | | | $ | — | | |
Second quarter
|
| | | | 29.40 | | | | | | 24.04 | | | | | | — | | |
First quarter
|
| | | | 31.72 | | | | | | 17.30 | | | | | | — | | |
2020
|
| | | | | | | | | | | | | | | | | | |
Fourth quarter
|
| | | $ | 20.00 | | | | | $ | 12.35 | | | | | $ | — | | |
Third quarter
|
| | | | 14.99 | | | | | | 11.95 | | | | | | — | | |
Second quarter
|
| | | | 15.94 | | | | | | 10.89 | | | | | | — | | |
First quarter
|
| | | | 18.98 | | | | | | 10.75 | | | | | | — | | |
2019
|
| | | | | | | | | | | | | | | | | | |
Fourth quarter
|
| | | $ | 17.50 | | | | | $ | 14.82 | | | | | $ | — | | |
Third quarter
|
| | | | 17.61 | | | | | | 13.11 | | | | | | — | | |
Second quarter
|
| | | | 14.50 | | | | | | 12.47 | | | | | | — | | |
First quarter
|
| | | | 15.19 | | | | | | 11.62 | | | | | | — | | |
2018
|
| | | | | | | | | | | | | | | | | | |
Fourth quarter
|
| | | $ | 17.36 | | | | | $ | 10.91 | | | | | $ | — | | |
| | |
Dividends
|
| |||
Year/Quarter: | | | | | | | |
2021
|
| | | | | | |
Third quarter(1)
|
| | | $ | — | | |
Second quarter
|
| | | | — | | |
First quarter
|
| | | | — | | |
2020
|
| | | | | | |
Fourth quarter
|
| | | $ | — | | |
Third quarter
|
| | | | — | | |
Second quarter
|
| | | | — | | |
First quarter
|
| | | | — | | |
2019
|
| | | | | | |
Fourth quarter
|
| | | | — | | |
Third quarter
|
| | | | — | | |
Second quarter
|
| | | | — | | |
First quarter
|
| | | | 0.0089 | | |
2018
|
| | | | | | |
Fourth quarter
|
| | | $ | — | | |
|
Transaction Price Per Share / Tangible Book Value Per Share
|
| | | | 125% | | |
|
Transaction Price Per Share / LTM Earnings Per Share
|
| | | | 23.8x | | |
|
Transaction Price Per Share / Estimated 2021 Earnings per Share(1)
|
| | | | 9.5x | | |
|
Transaction Price Per Share / Estimated 2022 Earnings per Share(1)
|
| | | | 10.2x | | |
|
Tangible Book Premium / Core Deposits (CDs > $100K)
|
| | | | 2.5% | | |
| | |
Beginning Value
July 16, 2020 |
| |
Ending Value
July 16, 2021 |
| ||||||
First Western
|
| | | | 100% | | | | | | 175.2% | | |
First Western Peer Group
|
| | | | 100% | | | | | | 157.5% | | |
S&P 500 Index
|
| | | | 100% | | | | | | 134.6% | | |
Nasdaq Bank Index
|
| | | | 100% | | | | | | 162.0% | | |
| | |
Beginning Value
July 18, 2018 |
| |
Ending Value
July 16, 2021 |
| ||||||
First Western
|
| | | | 100% | | | | | | 132.1% | | |
First Western Peer Group
|
| | | | 100% | | | | | | 93.1% | | |
S&P 500 Index
|
| | | | 100% | | | | | | 154.9% | | |
Nasdaq Bank Index
|
| | | | 100% | | | | | | 100.9% | | |
| Bancorp 34, Inc. | | | Jeffersonville Bancorp | |
| CITBA Financial Corporation | | | Mars Bancorp, Inc. | |
| Commencement Bancorp Inc. | | | Merchants & Marine Bancorp, Inc. | |
| Equitable Financial Corp. | | | Mission Valley Bancorp | |
| Generations Bancorp NY, Inc. | | | Pinnacle Bank | |
| Home Federal Bancorp, Inc. of Louisiana | | | Prime Meridian Holding Company | |
| IF Bancorp, Inc. | | | PSB Holding Corp. | |
| | |
Teton(2)
|
| |
Teton
Peer Group Median |
| |
Teton
Peer Group Mean |
| |
Teton
Peer Group Low |
| |
Teton
Peer Group High |
| |||||||||||||||
Total assets ($mm)
|
| | | | 429 | | | | | | 572 | | | | | | 567 | | | | | | 382 | | | | | | 735 | | |
Loans / Deposits (%)
|
| | | | 70 | | | | | | 75 | | | | | | 78 | | | | | | 50 | | | | | | 93 | | |
Non-performing assets/ Total assets (%)
|
| | | | 0.02 | | | | | | 0.44 | | | | | | 0.59 | | | | | | 0.01 | | | | | | 2.62 | | |
Tangible common equity/Tangible assets (%)
|
| | | | 8.7 | | | | | | 9.0 | | | | | | 9.2 | | | | | | 8.1 | | | | | | 11.1 | | |
Tier 1 Leverage Ratio (%)
|
| | | | 9.5 | | | | | | 9.3 | | | | | | 9.5 | | | | | | 8.2 | | | | | | 10.6 | | |
Total RBC Ratio (%)
|
| | | | 16.6 | | | | | | 16.2 | | | | | | 15.7 | | | | | | 11.9 | | | | | | 17.2 | | |
CRE/ Total RBC Ratio (%)(3)
|
| | | | 173 | | | | | | 209 | | | | | | 185 | | | | | | 35 | | | | | | 287 | | |
LTM Return on average assets (%)
|
| | | | 0.49 | | | | | | 0.84 | | | | | | 0.76 | | | | | | 0.30 | | | | | | 0.99 | | |
LTM Return on average equity (%)
|
| | | | 5.1 | | | | | | 8.8 | | | | | | 7.9 | | | | | | 2.5 | | | | | | 10.6 | | |
LTM Net interest margin (%)
|
| | | | 3.21 | | | | | | 3.28 | | | | | | 3.30 | | | | | | 2.67 | | | | | | 4.01 | | |
LTM Efficiency ratio (%)
|
| | | | 59 | | | | | | 70 | | | | | | 71 | | | | | | 56 | | | | | | 90 | | |
Price/ Tangible book value (%)
|
| | | | — | | | | | | 102 | | | | | | 98 | | | | | | 63 | | | | | | 120 | | |
Price/ LTM Earnings per share (x)
|
| | | | — | | | | | | 12.3 | | | | | | 13.7 | | | | | | 7.7 | | | | | | 27.2 | | |
Current Dividend Yield (%)
|
| | | | — | | | | | | 0.7 | | | | | | 1.2 | | | | | | 0.0 | | | | | | 3.2 | | |
Market value ($mm)
|
| | | | — | | | | | | 51 | | | | | | 50 | | | | | | 26 | | | | | | 79 | | |
| 1st Source Corporation | | | First United Corporation | |
| Alerus Financial Corporation | | | Park National Corporation | |
| Bar Harbor Bankshares | | | Peapack-Gladstone Financial Corporation | |
| Chemung Financial Corporation | | | Peoples Bancorp Inc. | |
| City Holding Company | | | QCR Holdings, Inc. | |
| Community Trust Bancorp, Inc. | | | Stock Yards Bancorp, Inc. | |
| First Business Financial Services, Inc. | | | Univest Financial Corporation | |
| First Commonwealth Financial Corporation | | | Washington Trust Bancorp, Inc. | |
| First Mid Bancshares, Inc. | | | | |
| | |
First Western
|
| |
First Western
Peer Group Median |
| |
First Western
Peer Group Mean |
| |
First Western
Peer Group Low |
| |
First Western
Peer Group High |
| |||||||||||||||
Total assets ($mm)
|
| | | | 2,212 | | | | | | 5,645 | | | | | | 5,374 | | | | | | 1,782 | | | | | | 9,914 | | |
Loans / Deposits (%)
|
| | | | 95 | | | | | | 87 | | | | | | 87 | | | | | | 72 | | | | | | 118 | | |
Non-performing assets/ Total
assets (%) |
| | | | 0.18 | | | | | | 0.58 | | | | | | 0.67 | | | | | | 0.20 | | | | | | 1.62 | | |
Tangible common equity/Tangible assets (%)
|
| | | | 6.3 | | | | | | 8.5 | | | | | | 8.7 | | | | | | 6.7 | | | | | | 11.3 | | |
Tier 1 Leverage Ratio (%)
|
| | | | 7.4 | | | | | | 9.5 | | | | | | 9.7 | | | | | | 7.8 | | | | | | 12.7 | | |
Total RBC Ratio (%)
|
| | | | 13.1 | | | | | | 15.0 | | | | | | 15.0 | | | | | | 11.5 | | | | | | 17.7 | | |
CRE / Total RBC Ratio (%)
|
| | | | 250 | | | | | | 208 | | | | | | 216 | | | | | | 56 | | | | | | 395 | | |
LTM NII / Operating Revenue (%)
|
| | | | 51.8 | | | | | | 29.4 | | | | | | 32.8 | | | | | | 25.4 | | | | | | 64.9 | | |
LTM Return on average assets (%)
|
| | | | 1.57 | | | | | | 1.18 | | | | | | 1.21 | | | | | | 0.64 | | | | | | 1.86 | | |
LTM Return on average equity (%)
|
| | | | 19.6 | | | | | | 11.6 | | | | | | 11.6 | | | | | | 7.0 | | | | | | 17.0 | | |
LTM Net interest margin (%)
|
| | | | 3.01 | | | | | | 3.20 | | | | | | 3.14 | | | | | | 2.24 | | | | | | 3.87 | | |
LTM Efficiency ratio (%)
|
| | | | 55 | | | | | | 58 | | | | | | 58 | | | | | | 52 | | | | | | 67 | | |
LTM Fiduciary Revenue (%)
|
| | | | 17.0 | | | | | | 11.0 | | | | | | 19.5 | | | | | | 7.8 | | | | | | 77.5 | | |
Price/Tangible book value (%)
|
| | | | 144 | | | | | | 143 | | | | | | 156 | | | | | | 98 | | | | | | 257 | | |
Price/LTM Earnings per share (x)
|
| | | | 6.8 | | | | | | 11.3 | | | | | | 11.8 | | | | | | 7.5 | | | | | | 16.8 | | |
Price/2022 Estimated Earnings per share (x)
|
| | | | 8.7 | | | | | | 11.1 | | | | | | 11.7 | | | | | | 7.0 | | | | | | 16.2 | | |
Current Dividend Yield (%)
|
| | | | 0.0 | | | | | | 3.0 | | | | | | 2.9 | | | | | | 0.5 | | | | | | 5.0 | | |
Market value ($mm)
|
| | | | 199 | | | | | | 715 | | | | | | 771 | | | | | | 109 | | | | | | 1,858 | | |
Acquiror
|
| |
Target
|
|
Simmons First National Corporation | | | Triumph Bancshares, Inc. | |
HBT Financial, Inc. | | | NXT Bancorporation, Inc. | |
Equity Bancshares, Inc. | | | American State Bancshares, Inc. | |
Southern California Bancorp | | | Bank of Santa Clarita | |
Bank of Marin Bancorp | | | American River Bankshares | |
SmartFinancial, Inc. | | | Sevier County Bancshares, Inc. | |
Shore Bancshares, Inc. | | | Severn Bancorp, Inc. | |
Fidelity D & D Bancorp, Inc. | | | Landmark Bancorp, Inc. | |
First National Corporation | | | Bank of Fincastle | |
BancorpSouth Bank | | | FNS Bancshares, Inc. | |
People’s Bank of Commerce | | | Willamette Community Bank | |
Virginia National Bankshares Corporation
|
| | Fauquier Bankshares, Inc. | |
Broadway Financial Corporation | | | CFBanc Corporation | |
BV Financial, Inc. (MHC) | | | Delmarva Bancshares, Inc. | |
BankFirst Capital Corporation | | | Traders & Farmers Bancshares, Inc. | |
Pinnacle Bankshares Corporation | | | Virginia Bank Bankshares, Incorporated | |
| | |
First
Western / Teton |
| |
Nationwide Precedent Transactions
|
| ||||||||||||||||||||||||
| | |
Median
|
| |
Mean
|
| |
Low
|
| |
High
|
| ||||||||||||||||||
Transaction Price / LTM Earnings Per Share (x)
|
| | | | 23.8 | | | | | | 19.0 | | | | | | 20.1 | | | | | | 10.1 | | | | | | 32.8 | | |
Transaction Price / Tangible Book Value Per Share (%)
|
| | | | 125 | | | | | | 123 | | | | | | 127 | | | | | | 85 | | | | | | 183 | | |
Tangible Book Value Premium to Core Deposits (%)
|
| | | | 2.5 | | | | | | 2.9 | | | | | | 4.0 | | | | | | (1.4) | | | | | | 10.3 | | |
1-Day Market Premium (%)
|
| | | | — | | | | | | 23.5 | | | | | | 20.3 | | | | | | (43.1) | | | | | | 45.9 | | |
Discount Rate
|
| |
9.0x
|
| |
10.0x
|
| |
11.0x
|
| |
12.0x
|
| |
13.0x
|
| |
14.0x
|
| ||||||||||||||||||
11.5%
|
| | | $ | 2.10 | | | | | $ | 2.33 | | | | | $ | 2.56 | | | | | $ | 2.80 | | | | | $ | 3.03 | | | | | $ | 3.26 | | |
12.0%
|
| | | | 2.05 | | | | | | 2.28 | | | | | | 2.51 | | | | | | 2.73 | | | | | | 2.96 | | | | | | 3.19 | | |
12.5%
|
| | | | 2.01 | | | | | | 2.23 | | | | | | 2.45 | | | | | | 2.67 | | | | | | 2.90 | | | | | | 3.12 | | |
13.0%
|
| | | | 1.96 | | | | | | 2.18 | | | | | | 2.40 | | | | | | 2.62 | | | | | | 2.83 | | | | | | 3.05 | | |
13.5%
|
| | | | 1.92 | | | | | | 2.13 | | | | | | 2.34 | | | | | | 2.56 | | | | | | 2.77 | | | | | | 2.98 | | |
14.0%
|
| | | | 1.88 | | | | | | 2.09 | | | | | | 2.29 | | | | | | 2.50 | | | | | | 2.71 | | | | | | 2.92 | | |
14.5%
|
| | | | 1.84 | | | | | | 2.04 | | | | | | 2.24 | | | | | | 2.45 | | | | | | 2.65 | | | | | | 2.86 | | |
Discount Rate
|
| |
80%
|
| |
90%
|
| |
100%
|
| |
110%
|
| |
120%
|
| |||||||||||||||
11.5%
|
| | | $ | 1.20 | | | | | $ | 1.35 | | | | | $ | 1.50 | | | | | $ | 1.65 | | | | | $ | 1.80 | | |
12.0%
|
| | | | 1.18 | | | | | | 1.32 | | | | | | 1.47 | | | | | | 1.62 | | | | | | 1.76 | | |
12.5%
|
| | | | 1.15 | | | | | | 1.29 | | | | | | 1.44 | | | | | | 1.58 | | | | | | 1.73 | | |
13.0%
|
| | | | 1.13 | | | | | | 1.27 | | | | | | 1.41 | | | | | | 1.55 | | | | | | 1.69 | | |
13.5%
|
| | | | 1.10 | | | | | | 1.24 | | | | | | 1.38 | | | | | | 1.51 | | | | | | 1.65 | | |
14.0%
|
| | | | 1.08 | | | | | | 1.21 | | | | | | 1.35 | | | | | | 1.48 | | | | | | 1.62 | | |
14.5%
|
| | | | 1.05 | | | | | | 1.19 | | | | | | 1.32 | | | | | | 1.45 | | | | | | 1.58 | | |
Annual Estimate Variance
|
| |
9.0x
|
| |
10.0x
|
| |
11.0x
|
| |
12.0x
|
| |
13.0x
|
| |
14.0x
|
| ||||||||||||||||||
(30.0%)
|
| | | $ | 1.38 | | | | | $ | 1.53 | | | | | $ | 1.68 | | | | | $ | 1.84 | | | | | $ | 1.99 | | | | | $ | 2.14 | | |
(20.0%)
|
| | | | 1.58 | | | | | | 1.75 | | | | | | 1.93 | | | | | | 2.10 | | | | | | 2.28 | | | | | | 2.45 | | |
(10.0%)
|
| | | | 1.77 | | | | | | 1.97 | | | | | | 2.17 | | | | | | 2.36 | | | | | | 2.56 | | | | | | 2.76 | | |
0.0%
|
| | | | 1.97 | | | | | | 2.19 | | | | | | 2.41 | | | | | | 2.63 | | | | | | 2.84 | | | | | | 3.06 | | |
10.0%
|
| | | | 2.17 | | | | | | 2.41 | | | | | | 2.65 | | | | | | 2.89 | | | | | | 3.13 | | | | | | 3.37 | | |
Discount Rate
|
| |
9.0x
|
| |
10.5x
|
| |
12.0x
|
| |
13.5x
|
| |
15.0x
|
| |
16.5x
|
| ||||||||||||||||||
11.5%
|
| | | $ | 17.23 | | | | | $ | 20.10 | | | | | $ | 22.97 | | | | | $ | 25.84 | | | | | $ | 28.72 | | | | | $ | 31.59 | | |
12.0%
|
| | | | 16.85 | | | | | | 19.66 | | | | | | 22.46 | | | | | | 25.27 | | | | | | 28.08 | | | | | | 30.89 | | |
12.5%
|
| | | | 16.48 | | | | | | 19.22 | | | | | | 21.97 | | | | | | 24.72 | | | | | | 27.46 | | | | | | 30.21 | | |
13.0%
|
| | | | 16.12 | | | | | | 18.80 | | | | | | 21.49 | | | | | | 24.17 | | | | | | 26.86 | | | | | | 29.55 | | |
13.5%
|
| | | | 15.76 | | | | | | 18.39 | | | | | | 21.02 | | | | | | 23.65 | | | | | | 26.27 | | | | | | 28.90 | | |
14.0%
|
| | | | 15.42 | | | | | | 17.99 | | | | | | 20.56 | | | | | | 23.13 | | | | | | 25.70 | | | | | | 28.27 | | |
14.5%
|
| | | | 15.09 | | | | | | 17.60 | | | | | | 20.12 | | | | | | 22.63 | | | | | | 25.15 | | | | | | 27.66 | | |
Discount Rate
|
| |
110%
|
| |
130%
|
| |
150%
|
| |
170%
|
| |
190%
|
| |
210%
|
| ||||||||||||||||||
11.5%
|
| | | $ | 20.45 | | | | | $ | 24.17 | | | | | $ | 27.89 | | | | | $ | 31.61 | | | | | $ | 35.33 | | | | | $ | 39.05 | | |
12.0%
|
| | | | 20.00 | | | | | | 23.64 | | | | | | 27.27 | | | | | | 30.91 | | | | | | 34.55 | | | | | | 38.18 | | |
12.5%
|
| | | | 19.56 | | | | | | 23.12 | | | | | | 26.67 | | | | | | 30.23 | | | | | | 33.79 | | | | | | 37.34 | | |
13.0%
|
| | | | 19.13 | | | | | | 22.61 | | | | | | 26.09 | | | | | | 29.57 | | | | | | 33.05 | | | | | | 36.52 | | |
13.5%
|
| | | | 18.71 | | | | | | 22.12 | | | | | | 25.52 | | | | | | 28.92 | | | | | | 32.32 | | | | | | 35.73 | | |
14.0%
|
| | | | 18.31 | | | | | | 21.64 | | | | | | 24.96 | | | | | | 28.29 | | | | | | 31.62 | | | | | | 34.95 | | |
14.5%
|
| | | | 17.91 | | | | | | 21.17 | | | | | | 24.42 | | | | | | 27.68 | | | | | | 30.94 | | | | | | 34.19 | | |
Annual Estimate Variance
|
| |
9.0x
|
| |
10.5x
|
| |
12.0x
|
| |
13.5x
|
| |
15.0x
|
| |
16.5x
|
| ||||||||||||||||||
(15.0%)
|
| | | $ | 13.75 | | | | | $ | 16.05 | | | | | $ | 18.34 | | | | | $ | 20.63 | | | | | $ | 22.92 | | | | | $ | 25.21 | | |
(10.0%)
|
| | | | 14.56 | | | | | | 16.99 | | | | | | 19.42 | | | | | | 21.84 | | | | | | 24.27 | | | | | | 26.70 | | |
(5.0%)
|
| | | | 15.37 | | | | | | 17.93 | | | | | | 20.50 | | | | | | 23.06 | | | | | | 25.62 | | | | | | 28.18 | | |
0.0%
|
| | | | 16.18 | | | | | | 18.88 | | | | | | 21.57 | | | | | | 24.27 | | | | | | 26.97 | | | | | | 29.66 | | |
5.0%
|
| | | | 16.99 | | | | | | 19.82 | | | | | | 22.65 | | | | | | 25.48 | | | | | | 28.32 | | | | | | 31.15 | | |
10.0%
|
| | | | 17.80 | | | | | | 20.77 | | | | | | 23.73 | | | | | | 26.70 | | | | | | 29.66 | | | | | | 32.63 | | |
15.0%
|
| | | | 18.61 | | | | | | 21.71 | | | | | | 24.81 | | | | | | 27.91 | | | | | | 31.01 | | | | | | 34.11 | | |
|
Teton
|
| |
First Western
|
|
|
Authorized Capital Stock
|
| |||
| Teton’s articles of incorporation state that the authorized capital stock of Teton consists of 50,000,000 shares of stock without par. As of the record date, there were 29,477,707 shares issued and outstanding. | | |
First Western’s articles of incorporation state that the authorized capital stock of First Western consists of 100,000,000 shares of capital stock, consisting of 90,000,000 shares of common stock without par value and 10,000,000 shares of preferred stock without par value. As of the record date, there were [•] shares of First Western common stock outstanding and no shares of First Western preferred stock outstanding.
|
|
|
Corporate Governance
|
| |||
| The rights of the Teton shareholders are governed by Wyoming law and the articles of incorporation and bylaws of Teton. | | | The rights of the First Western shareholders are governed by Colorado law and the articles of incorporation and bylaws of First Western. | |
|
Number of Directors
|
| |||
| Teton’s bylaws state that the number of directors constituting the board of directors shall be five. | | | First Western’s bylaws state that the number of directors constituting the board of directors shall not be less than three nor more than 25, as fixed from time to time by the board of directors. There are currently 11 members of the First Western board of directors. | |
|
Election of Directors
|
| |||
|
Under Wyoming law, unless otherwise provided in the articles of incorporation, directors are elected by a plurality of the votes cast by the shares entitled to vote in the election at a meeting at which a quorum is present. Although Teton’s bylaws provide that directors shall be elected by the shareholders holding a majority of the shares, Teton’s articles of incorporation do not provide for any manner of voting for directors.
|
| | First Western’s bylaws and Colorado law provides that at each election of directors, the number of candidates equaling the number of directors to be elected having the highest number of votes cast in favor of their election are elected to the board of directors. | |
|
Teton
|
| |
First Western
|
|
| Teton’s bylaws provide that every shareholder shall be entitled to one vote for each share standing in his name. | | | First Western’s articles of incorporation provide that each share of common stock shall have one vote. | |
| Teton’s articles of incorporation do not provide for cumulative voting in the election of directors by shareholders. | | | First Western’s articles of incorporation provide that cumulative voting shall not be permitted in the election of directors. | |
|
Removal of Directors
|
| |||
| Under Wyoming law, shareholders may remove one or more directors with or without cause unless the articles of incorporation provide that directors may be removed only for cause. A director may be removed by the shareholders only at a meeting called for the purpose of removing the director and the meeting notice shall state that the purpose, or one of the purposes, of the meeting is removal of the director. Although Teton’s bylaws provide that directors may be removed for cause only by a vote of shareholders holding two-thirds of the shares outstanding and entitled to vote, Teton’s articles of incorporation do not provide any such limitations on removal of directors. | | | First Western’s articles of incorporation provide that shareholders may remove one or more directors but only for cause. A director may be removed by shareholders only at a meeting called for the purpose of removing the director and after notice stating that the purpose, or one of the purposes, of the meeting is removal of the director. | |
|
Filling Vacancies on the Board of Directors
|
| |||
| Teton’s bylaws provide that a vacancy shall be deemed to exist in case of death, removal or incapacity of any director or increase in the size of the board. Teton’s bylaws further provide that, the event of such a vacancy, a majority of the remaining directors, though less than a quorum, may replace such director to hold office until the next annual meeting of the shareholders. | | | First Western’s bylaws provide that any vacancy on the board of directors may be filled (i) by the affirmative vote of the holders of a majority of the shares entitled to vote on the election of directors, or (ii) by the board of directors. | |
| Under Wyoming law, unless the articles of incorporation provide otherwise, if a vacancy occurs on a board of directors, including a vacancy resulting from an increase in the number of directors: (i) the shareholders may fill the vacancy; (ii) the board of directors may fill the vacancy; or (iii) if the directors remaining in office constitute fewer than a quorum of the board, they may fill the vacancy by the affirmative vote of a majority of all the directors remaining in office. | | | ||
|
Nomination of Director Candidates by Shareholders
|
| |||
| Teton’s bylaws provide that nominations for candidates to the board of directors shall be made by the board of directors. If shareholders holding a majority of the shares of the corporation do not approve one or more of the board nominees, shareholders holding no less than 30% of the shares of the corporation shall have the right to nominate replacement members for such remaining portion of the board by written notice to the board; provided, that no such nominated replacement member shall | | | First Western’s bylaws provide that nominations must be received by the secretary at the principal executive offices of the corporation, in the case of an annual meeting, not less than 90 nor more than 120 calendar days prior to the first anniversary of the preceding year’s annual meeting, or in the case of a special meeting, not more than 10 days after the day on which notice of the special meeting is first mailed to shareholders. Certain information set forth in the bylaws on nominees for director is | |
|
Teton
|
| |
First Western
|
|
| become a director unless the shareholders holding a majority of the shares approve such appointment and any required regulatory approvals have been obtained. | | | required to be included in the shareholder notice. | |
| As noted above, under Wyoming law, unless otherwise provided in the articles of incorporation, directors are elected by a plurality of the votes cast by the shares entitled to vote in the election at a meeting at which a quorum is present. | | | ||
|
Shareholder Proposals; Quorum
|
| |||
| Teton’s bylaws do not provide for shareholder proposals. | | | First Western’s bylaws provide that a proposal of business to be considered by the shareholders at a meeting of the shareholders may be made by any shareholder of the corporation who was a shareholder of record at the time of giving of notice who is entitled to vote at the meeting and who complies with the notice procedures set forth in the bylaws. Certain information set forth in the bylaws on the proposal is required to be included in the shareholder notice. | |
| A majority of Teton’s outstanding shares entitled to vote, represented in person or by proxy, constitute a quorum at a meeting of shareholders. | | | Unless otherwise provided in the articles of incorporation, a majority of the votes entitled to be cast on a matter by a voting group shall constitute a quorum of that voting group for action on the matter, but a quorum shall not consist of fewer than one-third of the votes entitled to be cast on the matter by the voting group. | |
|
Shareholder Action Without a Meeting
|
| |||
| Under Teton’s bylaws, any action required to be taken at a meeting of the shareholders, or any other action which may be taken at a meeting of the shareholders, may be taken without a meeting if a consent in writing, setting forth the action so taken, shall be signed by all of the shareholders entitled to vote with respect to the subject matter thereof. | | | Pursuant to First Western’s bylaws, any action required or permitted to be taken at a meeting of the shareholders may be taken without a meeting if a written consent (or counterparts thereof) that sets forth the action so taken is signed by all of the shareholders entitled to vote with respect to the subject matter thereof and received by the corporation. Such action is effective as of the date the last writing necessary to effect the action is received by the corporation, unless all of the writing specify a different effective date, in which case such specified date shall be the effective date for such action. | |
|
Special Meetings of Shareholders
|
| |||
| Under Teton’s bylaws, special meetings of the shareholders, other than those regulated by statute, may be called by the president, or a majority of the directors, and must be called by the president upon written request of the holders of 1/3 of the outstanding shares entitled to vote at such special meeting. Under Wyoming law, a special meeting of the shareholders may also be called if the holders of at least 10% of all the votes entitled to be cast on | | | Under First Western’s bylaws, unless otherwise prescribed by statute, special meetings of the shareholders may be called for any purpose by the president or by the board of directors. The president shall call a special meeting of the shareholders if the corporation receives one or more written demands for the meeting, stating the purpose or purposes for which it is to be held, signed and dated by holders of shares representing at least 10 of all the votes | |
|
Teton
|
| |
First Western
|
|
| any issue proposed to be considered at a the proposed special meeting sign, date, and deliver to Teton one or more written demands for the meeting describing the purpose or purposes for which it is to be held. | | | entitled to be cast on any issue proposed to be considered at the meeting. | |
|
Indemnification of Directors and Officers
|
| |||
|
Wyoming law provides that a corporation may indemnify an individual who is a party to a proceeding because the individual is a director or an officer against liability incurred in the proceeding if: (1) The individual acted in good faith; (2) he reasonably believed that his conduct was in or at least not opposed to the corporation’s best interests; and (3) in the case of any criminal proceeding, the individual had no reasonable cause to believe his conduct was unlawful.
Wyoming law further provides for mandatory indemnification of a director who was wholly successful, on the merits or otherwise, in the defense of any proceeding to which the director was a party because the director is or was a director of the corporation against reasonable expenses incurred by the director in connection with the proceeding.
|
| | First Western’s articles of incorporation provide that the corporation shall indemnify, to the maximum extent permitted by law, any person who is or was a director, officer, agent, fiduciary or employee of the corporation against any claim, liability or expense arising against or incurred by such person made party to a proceeding because he is or was a director, officer, agent, fiduciary or employee of the corporation or because he is or was serving another entity as a director, officer, partner, trustee, employee, fiduciary or agent at the corporation’s request. The corporation shall further have the authority to the maximum extent permitted by law to purchase and maintain insurance on behalf of a person who is or was a director, officer, agent, fiduciary or employee of the corporation, or who, while a director, officer, agent, fiduciary or employee of the corporation, is or was serving at the request of the corporation as a director, officer, agent, fiduciary or employee of another domestic or foreign entity or of an employee benefit plan, against liability asserted against or incurred by the person in that capacity or arising from the person’s status as a director, officer, employee, fiduciary, or agent, whether or not the corporation would have power to indemnify the person against the same liability pursuant to the articles of incorporation. | |
|
Under certain circumstances, Wyoming law provides that a corporation may advance funds to pay for or reimburse the reasonable expenses incurred in connection with the proceeding by an individual who is a party to the proceeding because that individual is a member of the board of directors.
Teton’s articles of incorporation and bylaws provide for different indemnification and expense reimbursement standards.
Teton’s articles of incorporation provide that no officer or director shall be personally liable for any obligations of Teton or for any duties or obligations of Teton or for any duties or obligations arising out of any acts or conduct of said officer or director performed for or on behalf of Teton but further provide that Teton will indemnify officers and directors against any such liability resulting from such acts or conduct in accordance with Wyoming
|
| |
First Western’s bylaws provide that the corporation shall indemnify any Proper Person who was wholly successful, on the merits or otherwise, in defense of any action, suit, or proceeding as to which he was entitled to indemnification under the applicable provisions of the bylaws against reasonable expenses (including attorneys’ fees) incurred by him in connection with the proceeding without the necessity of any action by the corporation other than the determination in good faith that the defense has been wholly successful.
For purposes of First Western’s bylaws, a “Proper Person” means any person who was or is a party or is threatened to be made a party to any threatened, pending, or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, and whether formal or informal, by reason of the fact that he is or was a director, officer, employee, fiduciary or agent of the
|
|
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Teton
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First Western
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law as described above. Teton’s articles of incorporation also state that no such person shall be indemnified against, or be reimbursed for, any expense incurred in connection with any claim or liability arising out of his own willful misconduct.
Teton’s bylaws provide that it shall, to the fullest extent permitted by applicable law, indemnify, defend and hold harmless each director and officer of the corporation against any losses, claims, costs, expenses, damages, demands or liabilities, to which such indemnified party may become subject as a result of claim brought by third parties in connection with any matter arising out of or incident to any act performed or omitted to be performed such any such indemnified party in connection with business or affaires of the corporation but only to the extent that such act or omission (i) was not attributable to such indemnified person’s fraud, bad faith, willful misconduct or gross negligence and (ii) did not constitute a material breach or violation by the indemnified party of its obligations under or in connection with the bylaws. If an indemnified party becomes involved in any capacity in any action, proceeding or investigation in connection with any matter arising out of or in connection with the bylaws or the business or affairs of the corporation, the corporation shall select legal counsel for such indemnified party and shall make advances on behalf of such indemnified party for such legal counsel and other reasonable out-of-pocket expenses (including the cost of any investigation and preparation, but excluding any additional legal counsel that such indemnified party may engage separately from the corporation’s selected legal counsel) as they are incurred in connection therewith, provided that such indemnified party shall promptly repay to the corporation the amount of any such reimbursed expenses paid to it if it shall ultimately be determined that such indemnified party was not entitled to be indemnified by the corporation in connection with such action, proceeding or investigation and only upon receipt of an undertaking by or on behalf of the indemnified party to repay such amount.
To the extent that an indemnified party has been successful, on the merits or otherwise, in the defense of any action, suit or proceeding referred to in paragraph (a), above, or in defense of any claim, issue or matter therein, the indemnified party shall be indemnified against expenses (including attorney’s fees) actually and reasonably incurred by
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corporation, or is or was serving at the request of the corporation as a director, officer, agent, associate, employee, fiduciary, manager, member, partner, promotor, or trustee, or any similar position, of any foreign or domestic profit or nonprofit corporation or of any partnership, joint venture, trust, profit or nonprofit unincorporated association, limited liability company, or other enterprise, entity, or employee benefit plan. The corporation shall indemnify any Proper Person against reasonably incurred expenses (including attorneys’ fees), judgments, penalties, fines (including any excise tax assessed with respect to an employee benefit plan) and amounts paid in settlement reasonably incurred by him in connection with such action, suit or proceeding if it is determined by the groups set forth in Section 4 of the bylaws that he conducted himself in good faith and that he reasonably believed (i) in the case of conduct in his official capacity with the corporation, that his conduct was in the corporation’s best interests, or (ii) in all other cases (except criminal cases), that his conduct was at least not opposed to the corporation’s best interests, or (iii) in the case of any criminal proceeding, that he had no reasonable cause to believe his conduct was unlawful. A Proper Person will be deemed to be acting in his official capacity while acting as a director, officer, employee or agent on behalf of this corporation and not while acting on this corporation’s behalf for some other entity.
First Western’s bylaws provide that no indemnification shall be made to a Proper Person with respect to any claim, issue or matter in connection with a proceeding by or in the right of a corporation in which the Proper Person was adjudged liable to the corporation or in connection with any proceeding charging that the Proper Person derived an improper personal benefit, whether or not involving action in an official capacity, in which he was adjudged liable on the basis that he derived an improper personal benefit. Further, indemnification in connection with a proceeding brought by or in the right of the corporation shall be limited to reasonable expenses, including attorneys’ fees, incurred in connection with the proceeding.
First Western’s bylaws provide that except where there is a right to indemnification as set forth in the applicable sections of the bylaws or where indemnification is ordered by a court, any indemnification shall be made by the corporation
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Teton
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First Western
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the person in connection therewith.
Any indemnification under the applicable sections of the bylaws (unless ordered by a court), shall be made by the corporation only as authorized in the specific case, upon a determination that indemnification of the indemnified party is proper in the circumstances because the indemnified party has met the applicable standard of conduct set forth in the bylaws, such determination to be made by the board in good faith. In the case where an indemnified party is a director, only non-interested directors shall be involved in making the determination to be provided by the board.
The indemnification provided by the bylaws shall not be deemed exclusive of any other rights to which those seeking indemnification may be entitled under the corporation’s articles of incorporation, or any agreement, vote of shareholders or disinterested directors, or otherwise, both as to action in the person’s official capacity and as to action in another capacity while holding office, and shall continue as to a person who has ceased to be a director or officer, and shall inure to the benefit of the heirs, executors and administrators of such person.
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only as authorized in the specific case upon a determination by a proper group that indemnification of the Proper Person is permissible under the circumstances because he has met the applicable standards of conduct set forth in the applicable sections of the bylaws. This determination shall be made by the board of directors by a majority vote of those present at a meeting at which a quorum is present, which quorum shall only include those directors not parties to the proceeding. If a quorum cannot be obtained, the determination shall be made by a majority vote of a committee of the board of directors designated by the board, which committee shall consist of two or more directors not parties to the proceeding, except that directors who are parties to the proceeding may participate in the designation of directors for the committee. If a quorum of the board of directors cannot be obtained and the committee cannot be established, or even if a quorum is obtained or the committee is designated and a majority of the director’s constituting such quorum or committee so directs, the determination shall be made by (i) independent legal counsel selected by a vote of the board of directors or the committee in the manner specified in the bylaws or, if a quorum of the full board of directors cannot be obtained and a committee cannot be established, by independent legal counsel selected by a majority vote of the full board (including directors who are parties to the action) or (ii) a vote of the shareholders.
First Western’s bylaws provide reasonable expenses (including attorneys’ fees) incurred in defending an action, suit or proceeding as described in the bylaws may be paid by the corporation to any Proper Person in advance of the final disposition of such action, suit or proceeding upon receipt of (i) a written affirmation of such Proper Person’s good faith belief that he has met the standards of conduct prescribed in the bylaws, (ii) a written undertaking, executed personally or on the Proper Person’s behalf, to repay such advances if it is ultimately determined that such Proper Person did not meet the prescribed standards of conduct (the undertaking shall be an unlimited general obligation of the Proper Person but need not be secured and may be accepted without reference to financial ability to make repayment), and (iii) a determination is made by the proper group that the facts as then known to the group would not preclude indemnification.
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Teton
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First Western
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Amendments to Articles of Incorporation and Bylaws
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| Teton’s articles of incorporation may be amended in any manner allowed under Wyoming law. | | | First Western’s articles of incorporation may be amended in any manner allowed under Colorado law. | |
| Teton’s bylaws may be altered, amended or repealed or new bylaws may be adopted by a majority vote of the shareholders at any regular or special meeting or by unanimous written consent signed by all shareholders. | | | First Western’s bylaws provide that, subject to repeal or change by action of the shareholders, the board of directors may amend, supplement or repeal its bylaws or adopt new bylaws, and all such changes shall affect and be binding upon the holders of all shares heretofore as well as hereafter authorized, subscribed for or offered. Further, pursuant to CRS 7-110-201, the shareholders may amend the bylaws. | |
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Exclusive Forum
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| Teton’s articles of incorporation do not provide for an exclusive forum for shareholder litigation suits. | | | First Western’s articles of incorporation provide that unless the corporation consents in writing to the selection of an alternative forum, any state or federal court located in Denver County in the State of Colorado shall be the sole and exclusive forum for (a) any actual or purported derivative action or proceeding brought on behalf of the corporation, (b) any action asserting a claim of breach of a fiduciary duty owed by any current or former director, officer, or other employee or agent of the corporation to the corporation or the corporation’s shareholders or creditors, including a claim alleging the aiding and abetting of such a breach of fiduciary duty, (c) any action asserting a claim against the corporation or any current or former director, officer, or other employee or agent of the corporation arising pursuant to any provision of the Colorado Business Corporation Act, the articles of incorporation, or the bylaws of the corporation (as any of the foregoing may be amended from time to time), or (d) any action asserting a claim against the corporation or any current or former director, officer, or other employee or agent of the corporation governed by the internal affairs doctrine, including any action to interpret, apply, enforce or determine the validity of any provision of the Colorado Business Corporation Act, the articles of incorporation, or the bylaws of the corporation (as any of the foregoing may be amended from time to time). | |
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For the Years Ended December 31,
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2020
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2019
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2018
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Average
Balance |
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Interest
Income/ Expense |
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Average
Rate/ Yield(1) |
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Average
Balance |
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Interest
Income/ Expense |
| |
Average
Rate/ Yield(1) |
| |
Average
Balance |
| |
Interest
Income/ Expense |
| |
Average
Rate/ Yield(1) |
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(Dollars in Thousands)
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Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans(1) | | | | $ | 261,453 | | | | | $ | 12,930 | | | | | | 4.95% | | | | | $ | 224,002 | | | | | | 13,013 | | | | | | 5.81% | | | | | $ | 219,176 | | | | | $ | 12,381 | | | | | | 5.65% | | |
Investment securities – taxable
|
| | | | 16,863 | | | | | | 573 | | | | | | 3.40% | | | | | | 16,495 | | | | | | 500 | | | | | | 3.03% | | | | | | 11,676 | | | | | | 279 | | | | | | 2.39% | | |
Investment securities – tax
exempt |
| | | | 0 | | | | | | 0 | | | | | | 0.00% | | | | | | 0 | | | | | | 0 | | | | | | 0.00% | | | | | | 0 | | | | | | 0 | | | | | | 0.00% | | |
Other earning assets
|
| | | | 77,587 | | | | | | 243 | | | | | | 0.31% | | | | | | 47,239 | | | | | | 1,041 | | | | | | 2.20% | | | | | | 45,438 | | | | | | 926 | | | | | | 2.04% | | |
Total interest-earning
assets |
| | | | 355,903 | | | | | $ | 13,746 | | | | | | 3.86% | | | | | | 287,736 | | | | | $ | 14,554 | | | | | | 5.06% | | | | | | 276,290 | | | | | $ | 13,586 | | | | | | 4.92% | | |
Noninterest-earning assets:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and due from
banks |
| | | | 4,340 | | | | | | | | | | | | | | | | | | 4,324 | | | | | | | | | | | | | | | | | | 4,252 | | | | | | | | | | | | | | |
Other assets
|
| | | | 14,718 | | | | | | | | | | | | | | | | | | 16,216 | | | | | | | | | | | | | | | | | | 16,884 | | | | | | | | | | | | | | |
Total assets
|
| | | $ | 374,961 | | | | | | | | | | | | | | | | | $ | 308,276 | | | | | | | | | | | | | | | | | $ | 297,426 | | | | | | | | | | | | | | |
Liabilities and Stockholders’ Equity
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing liabilities:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing
demand |
| | | $ | 100,820 | | | | | | 308 | | | | | | 0.31% | | | | | $ | 70,880 | | | | | $ | 330 | | | | | | 0.47% | | | | | $ | 52,952 | | | | | $ | 154 | | | | | | 0.29% | | |
Money market
|
| | | | 128,698 | | | | | | 828 | | | | | | 0.64% | | | | | | 113,253 | | | | | | 1,237 | | | | | | 1.09% | | | | | | 113,399 | | | | | | 452 | | | | | | 0.40% | | |
Savings
|
| | | | 23,792 | | | | | | 58 | | | | | | 0.24% | | | | | | 19,322 | | | | | | 88 | | | | | | 0.46% | | | | | | 16,521 | | | | | | 64 | | | | | | 0.39% | | |
Time deposits
|
| | | | 39,193 | | | | | | 496 | | | | | | 1.27% | | | | | | 34,110 | | | | | | 519 | | | | | | 1.52% | | | | | | 39,217 | | | | | | 489 | | | | | | 1.25% | | |
Repurchase agreements
|
| | | | 0 | | | | | | 0 | | | | | | 0.00% | | | | | | 0 | | | | | | 0 | | | | | | 0.00% | | | | | | 0 | | | | | | 0 | | | | | | 0.00% | | |
Other borrowings
|
| | | | 3593 | | | | | | 216 | | | | | | 6.01% | | | | | | 3606 | | | | | | 216 | | | | | | 5.99% | | | | | | 3594 | | | | | | 216 | | | | | | 6.01% | | |
Total interest-bearing liabilities
|
| | | | 296,096 | | | | | | 1,906 | | | | | | 0.64% | | | | | | 241,171 | | | | | | 2,390 | | | | | | 0.99% | | | | | | 225,683 | | | | | | 1,375 | | | | | | 0.61% | | |
Noninterest-bearing liabilities:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Demand deposits
|
| | | | 40,021 | | | | | | | | | | | | | | | | | | 30,938 | | | | | | | | | | | | | | | | | | 38,770 | | | | | | | | | | | | | | |
Other liabilities
|
| | | | 1,592 | | | | | | | | | | | | | | | | | | 1,043 | | | | | | | | | | | | | | | | | | 946 | | | | | | | | | | | | | | |
Stockholders’ equity
|
| | | | 37,252 | | | | | | | | | | | | | | | | | | 35,124 | | | | | | | | | | | | | | | | | | 32,027 | | | | | | | | | | | | | | |
Total liabilities and stockholders’ equity
|
| | | $ | 374,961 | | | | | | | | | | | | | | | | | $ | 308,276 | | | | | | | | | | | | | | | | | $ | 297,426 | | | | | | | | | | | | | | |
Net Interest Income
|
| | | | | | | | | $ | 11,840 | | | | | | | | | | | | | | | | | $ | 12,164 | | | | | | | | | | | | | | | | | $ | 12,211 | | | | | | | | |
Net Interest Spread(2)
|
| | | | | | | | | | | | | | | | 3.22% | | | | | | | | | | | | | | | | | | 4.07% | | | | | | | | | | | | | | | | | | 4.31% | | |
Net Interest Margin(3)
|
| | | | | | | | | | | | | | | | 3.33% | | | | | | | | | | | | | | | | | | 4.23% | | | | | | | | | | | | | | | | | | 4.42% | | |
| | |
Year Ended December 31,
2020 vs. 2019 Increases (Decreases) Due to Change In |
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| | |
Volume
|
| |
Rate
|
| |
Vol & Rate
|
| |
Total
|
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| | |
(Dollars in Thousands)
|
| | | | | | | |||||||||||||||
Increase (decrease) in interest income: | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans
|
| | | $ | 2,176 | | | | | $ | (1,935) | | | | | $ | (324) | | | | | $ | (83) | | |
Investment securities – taxable
|
| | | | 11 | | | | | | 61 | | | | | | 1 | | | | | | 74 | | |
Investment securities – tax exempt
|
| | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | |
Other earning assets
|
| | | | 669 | | | | | | (893) | | | | | | (574) | | | | | | (798) | | |
Total interest income
|
| | | | 2,856 | | | | | | (2,767) | | | | | | (896) | | | | | | (807) | | |
(Increase) decrease in interest expense: | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing demand
|
| | | | 139 | | | | | | (113) | | | | | | (48) | | | | | | (22) | | |
Money market
|
| | | | 169 | | | | | | (508) | | | | | | (69) | | | | | | (409) | | |
Savings
|
| | | | 20 | | | | | | (41) | | | | | | (9) | | | | | | (30) | | |
Time certificates of deposit
|
| | | | 77 | | | | | | (87) | | | | | | (13) | | | | | | (23) | | |
Repurchase agreements
|
| | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | |
Other borrowings
|
| | | | -1 | | | | | | 1 | | | | | | 0 | | | | | | 0 | | |
Total interest expense
|
| | | | 405 | | | | | | (749) | | | | | | (140) | | | | | | (484) | | |
Net interest income differential
|
| | | $ | 2,451 | | | | | $ | (2,018) | | | | | $ | (756) | | | | | $ | (323) | | |
| | |
Year Ended December 31,
2019 vs. 2018 Increases (Decreases) Due to Change In |
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| | |
Volume
|
| |
Rate
|
| |
Vol & Rate
|
| |
Total
|
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| | |
(Dollars in Thousands)
|
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Increase (decrease) in interest income:
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Loans
|
| | | $ | 273 | | | | | $ | 352 | | | | | $ | 8 | | | | | $ | 632 | | |
Investment securities – taxable
|
| | | | 115 | | | | | | 74 | | | | | | 31 | | | | | | 220 | | |
Investment securities – tax exempt
|
| | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | |
Other earning assets
|
| | | | 37 | | | | | | 75 | | | | | | 3 | | | | | | 115 | | |
Total interest income
|
| | | | 424 | | | | | | 501 | | | | | | 41 | | | | | | 967 | | |
(Increase) decrease in interest expense: | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing demand
|
| | | | 52 | | | | | | 93 | | | | | | 31 | | | | | | 176 | | |
Money market
|
| | | | (1) | | | | | | 785 | | | | | | (1) | | | | | | 783 | | |
Savings
|
| | | | 11 | | | | | | 11 | | | | | | 2 | | | | | | 24 | | |
Time certificates of deposit
|
| | | | (64) | | | | | | 108 | | | | | | (14) | | | | | | 30 | | |
Repurchase agreements
|
| | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | |
Other borrowings
|
| | | | 1 | | | | | | (1) | | | | | | 0 | | | | | | 0 | | |
Total interest expense
|
| | | | (1) | | | | | | 995 | | | | | | 18 | | | | | | 1,013 | | |
Net interest income differential
|
| | | $ | 425 | | | | | $ | (494) | | | | | $ | 23 | | | | | $ | (46) | | |
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For the Years Ended December 31,
|
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2020
|
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2019
|
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2018
|
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| | |
Amount
|
| |
Percent
of Total |
| |
Amount
|
| |
Percent
of Total |
| |
Amount
|
| |
Percent
of Total |
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| | |
(Dollars in Thousands)
|
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Salaries and employee benefits
|
| | | $ | 4,534 | | | | | | 57% | | | | | $ | 4089 | | | | | | 56% | | | | | $ | 4,279 | | | | | | 57% | | |
Occupancy and equipment
|
| | | | 743 | | | | | | 9% | | | | | | 712 | | | | | | 10% | | | | | | 757 | | | | | | 10% | | |
Data processing and software
|
| | | | 1,140 | | | | | | 14% | | | | | | 908 | | | | | | 12% | | | | | | 866 | | | | | | 11% | | |
OREO expense
|
| | | | 181 | | | | | | 2% | | | | | | 78 | | | | | | 1% | | | | | | 138 | | | | | | 2% | | |
Other operating expense
|
| | | | 1,370 | | | | | | 17% | | | | | | 1,565 | | | | | | 21% | | | | | | 1494 | | | | | | 20% | | |
Total noninterest expense
|
| | | $ | 7,968 | | | | | | | | | | | $ | 7,352 | | | | | | | | | | | $ | 7534 | | | | | | | | |
As a percentage of average total interest-earning assets
|
| | | | 2.24% | | | | | | | | | | | | 2.56% | | | | | | | | | | | | 2.73% | | | | | | | | |
Efficiency ratio
|
| | | | 58.27% | | | | | | | | | | | | 54.36% | | | | | | | | | | | | 56.95% | | | | | | | | |
| | |
Ratio at
December 31, 2020 |
| |
Ratio at
December 31, 2019 |
| |
Minimum
Requirement for “Adequately Capitalized” Institution plus Capital Conservation Buffer |
| |
Minimum
Requirement for “Well-Capitalized” Institution at December 31, 2020 |
| ||||||||||||
Common Equity Tier 1 Risk-Based Capital Ratio
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Rocky Mountain Bank
|
| | | | 15.2% | | | | | | 15.5% | | | | | | 7.0% | | | | | | 6.5% | | |
Tier 1 Risk-Based Capital Ratio | | | | | | | | | | | | | | | | | | | | | | | | | |
Rocky Mountain Bank
|
| | | | 15.2% | | | | | | 15.5% | | | | | | 8.5% | | | | | | 8% | | |
Total Risk-Based Capital Ratio | | | | | | | | | | | | | | | | | | | | | | | | | |
Rocky Mountain Bank
|
| | | | 16.5% | | | | | | 16.6% | | | | | | 10.5% | | | | | | 10% | | |
Leverage Ratio | | | | | | | | | | | | | | | | | | | | | | | | | |
Rocky Mountain Bank
|
| | | | 9.3% | | | | | | 11.8% | | | | | | 4.0% | | | | | | 5.0% | | |
| | |
As of December 31,
|
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| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||||||||||||||||||||
| | |
Amortized
Cost |
| |
Fair Value
|
| |
Amortized
Cost |
| |
Fair Value
|
| |
Amortized
Cost |
| |
Fair Value
|
| ||||||||||||||||||
| | |
(Dollars in Thousands)
|
| |||||||||||||||||||||||||||||||||
Available for sale | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government agency securities
|
| | | $ | 998 | | | | | $ | 1,021 | | | | | $ | 1,495 | | | | | $ | 1,508 | | | | | $ | 1,991 | | | | | $ | 1,967 | | |
U.S. Treasury
|
| | | | 1,000 | | | | | | 1,000 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | |
SBA loan pools
|
| | | | 2,945 | | | | | | 3,002 | | | | | | 3,710 | | | | | | 3,719 | | | | | | 4,875 | | | | | | 4,861 | | |
U.S. agency mortgage-backed securities
|
| | | | 7,840 | | | | | | 8,246 | | | | | | 9,367 | | | | | | 9,624 | | | | | | 8,875 | | | | | | 8,926 | | |
Total
|
| | | $ | 12,783 | | | | | $ | 13,269 | | | | | $ | 14,572 | | | | | $ | 14,851 | | | | | $ | 15,741 | | | | | $ | 15,754 | | |
| | |
December 31,
|
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2020
|
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2019
|
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2018
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2017
|
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2016
|
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| | |
Amount
|
| |
% of
Loans |
| |
Amount
|
| |
% of
Loans |
| |
Amount
|
| |
% of
Loans |
| |
Amount
|
| |
% of
Loans |
| |
Amount
|
| |
% of
Loans |
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(Dollars in Thousands)
|
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Commercial and residential real estate
|
| | | $ | 167,086 | | | | | | 66% | | | | | $ | 171,634 | | | | | | 73% | | | | | $ | 157,885 | | | | | | 74% | | | | | $ | 163,846 | | | | | | 75% | | | | | $ | 163,391 | | | | | | 83% | | |
Commercial
|
| | | | 62,131 | | | | | | 25% | | | | | | 19,474 | | | | | | 8% | | | | | | 19,689 | | | | | | 9% | | | | | | 19,943 | | | | | | 9% | | | | | | 13,192 | | | | | | 7% | | |
Consumer
|
| | | | 24,258 | | | | | | 10% | | | | | | 43,481 | | | | | | 18% | | | | | | 35,404 | | | | | | 17% | | | | | | 35,091 | | | | | | 16% | | | | | | 21,080 | | | | | | 11% | | |
Other
|
| | | | 24 | | | | | | 0% | | | | | | 878 | | | | | | 0% | | | | | | 857 | | | | | | 0% | | | | | | 9 | | | | | | 0% | | | | | | 1 | | | | | | 0% | | |
Total gross loans
|
| | | | 253,499 | | | | | | | | | | | | 235,467 | | | | | | | | | | | | 213,835 | | | | | | | | | | | | 218,889 | | | | | | | | | | | | 197,664 | | | | | | | | |
Less allowance for loan losses
|
| | | | (5,699) | | | | | | | | | | | | (2,832) | | | | | | | | | | | | (3193) | | | | | | | | | | | | (2,914) | | | | | | | | | | | | (2,320) | | | | | | | | |
Deferred costs and (fees)
|
| | | | 241 | | | | | | | | | | | | (359) | | | | | | | | | | | | (474) | | | | | | | | | | | | (449) | | | | | | | | | | | | (396) | | | | | | | | |
Net loans, held for investment
|
| | | $ | 248,041 | | | | | | | | | | | $ | 232,276 | | | | | | | | | | | $ | 210,168 | | | | | | | | | | | $ | 215,526 | | | | | | | | | | | $ | 194,948 | | | | | | | | |
| | |
Year Ended December 31,
|
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| | |
2020
|
| |
2019
|
| |
2018
|
| |
2017
|
| |
2016
|
| |||||||||||||||
| | |
(Dollars in Thousands)
|
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Balance, beginning of period
|
| | | $ | 2,832 | | | | | $ | 3,193 | | | | | $ | 2,914 | | | | | $ | 2,320 | | | | | $ | 2,066 | | |
Total loan charge-offs
|
| | | | (2,060) | | | | | | (3,107) | | | | | | (1,958) | | | | | | (642) | | | | | | (45) | | |
Total loan recoveries
|
| | | | 327 | | | | | | 336 | | | | | | 212 | | | | | | 26 | | | | | | 4 | | |
Net loan recoveries (charge-offs)
|
| | | | (1,733) | | | | | | (2,771) | | | | | | (1,746) | | | | | | (616) | | | | | | (41) | | |
Provision (credit) for loan losses
|
| | | | 4,600 | | | | | | 2,410 | | | | | | 2,025 | | | | | | 1,210 | | | | | | 295 | | |
Balance, end of period
|
| | | $ | 5,699 | | | | | $ | 2,832 | | | | | $ | 3,193 | | | | | $ | 2,914 | | | | | $ | 2,320 | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| |
December 31,
2018 |
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| | |
(Dollars in Thousands)
|
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Commitments to extend credit
|
| | | $ | 40,128 | | | | | $ | 29,730 | | | | | $ | 26,424 | | |
Letters of credit
|
| | | | 15 | | | | | | 15 | | | | | | 45 | | |
Total
|
| | | $ | 40,143 | | | | | $ | 29,745 | | | | | $ | 26,469 | | |
| | |
December 31, 2020
|
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| | |
(Dollars in Thousands)
|
| |||
2021
|
| | | $ | 23,816 | | |
2022
|
| | | | 12,252 | | |
2023 and later
|
| | | | 4,454 | | |
Total
|
| | | $ | 40,522 | | |
| | |
Six Months Ended
June 30, 2021 |
| |
Six Months Ended
June 30, 2020 |
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| | |
Average
Balance |
| |
Interest
Income/ Expense |
| |
Average
Rate/ Yield(1) |
| |
Average
Balance |
| |
Interest
Income/ Expense |
| |
Average
Rate/ Yield(1) |
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| | |
(Dollars in Thousands)
|
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Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans(1) | | | | $ | 266,185 | | | | | $ | 6,265 | | | | | | 4.71% | | | | | $ | 255,812 | | | | | $ | 6,465 | | | | | | 5.05% | | |
Investment securities – taxable
|
| | | | 16,427 | | | | | | 190 | | | | | | 2.32% | | | | | | 17,815 | | | | | | 364 | | | | | | 4.09% | | |
Investment securities – tax exempt
|
| | | | 0 | | | | | | 0 | | | | | | 0.00% | | | | | | 0 | | | | | | 0 | | | | | | 0.00% | | |
Other earning assets
|
| | | | 118,169 | | | | | | 73 | | | | | | 0.12% | | | | | | 47,667 | | | | | | 172 | | | | | | 0.72% | | |
Total interest-earning assets
|
| | | | 400,780 | | | | | $ | 6,529 | | | | | | 3.26% | | | | | $ | 321,294 | | | | | $ | 7,001 | | | | | | 4.36% | | |
Noninterest-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and due from banks
|
| | | | 3,503 | | | | | | | | | | | | | | | | | | 4,233 | | | | | | | | | | | | | | |
Other assets
|
| | | | 13,039 | | | | | | | | | | | | | | | | | | 15,443 | | | | | | | | | | | | | | |
Total Assets
|
| | | $ | 417,323 | | | | | | | | | | | | | | | | | $ | 340,969 | | | | | | | | | | | | | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing demand
|
| | | $ | 118,781 | | | | | $ | 87 | | | | | | 0.15% | | | | | $ | 87,787 | | | | | $ | 176 | | | | | | 0.40% | | |
Money market
|
| | | | 141,718 | | | | | | 100 | | | | | | 0.14% | | | | | | 115,864 | | | | | | 551 | | | | | | 0.95% | | |
Savings
|
| | | | 31,766 | | | | | | 14 | | | | | | 0.09% | | | | | | 23,483 | | | | | | 49 | | | | | | 0.42% | | |
Time deposits
|
| | | | 35,649 | | | | | | 193 | | | | | | 1.08% | | | | | | 36,045 | | | | | | 244 | | | | | | 1.35% | | |
Repurchase agreements
|
| | | | 0 | | | | | | 0 | | | | | | 0.00% | | | | | | 0 | | | | | | 0 | | | | | | 0.00% | | |
Other borrowings
|
| | | | 3,593 | | | | | | 107 | | | | | | 5.95% | | | | | | 3,593 | | | | | | 108 | | | | | | 5.98% | | |
Total interest-bearing liabilities
|
| | | | 331,507 | | | | | | 501 | | | | | | 0.30% | | | | | | 266,772 | | | | | | 1,128 | | | | | | 0.85% | | |
Noninterest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Demand deposits
|
| | | | 44,434 | | | | | | | | | | | | | | | | | | 35,871 | | | | | | | | | | | | | | |
Other liabilities
|
| | | | 2,777 | | | | | | | | | | | | | | | | | | 1,426 | | | | | | | | | | | | | | |
Stockholders’ equity
|
| | | | 38,604 | | | | | | | | | | | | | | | | | | 36,899 | | | | | | | | | | | | | | |
Total liabilities and stockholders’ equity
|
| | | $ | 331,507 | | | | | | | | | | | | | | | | | $ | 340,969 | | | | | | | | | | | | | | |
Net Interest Income
|
| | | | | | | | | $ | 6,028 | | | | | | | | | | | | | | | | | $ | 5,873 | | | | | | | | |
Net Interest Spread(2)
|
| | | | | | | | | | | | | | | | 2.96% | | | | | | | | | | | | | | | | | | 3.51% | | |
Net Interest Margin(3)
|
| | | | | | | | | | | | | | | | 3.01% | | | | | | | | | | | | | | | | | | 3.66% | | |
| | |
Six Months Ended June 30,
2021 vs. 2020 Increases (Decreases) Due to Change In |
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| | |
Volume
|
| |
Rate
|
| |
Vol & Rate
|
| |
Total
|
| ||||||||||||
| | |
(Dollars in Thousands)
|
| | | | | | | |||||||||||||||
Increase (decrease) in interest income: | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans
|
| | | $ | 262 | | | | | $ | (444) | | | | | $ | (18) | | | | | $ | (200) | | |
Investment securities – taxable
|
| | | | (28) | | | | | | (158) | | | | | | 12 | | | | | | (174) | | |
Investment securities – tax exempt
|
| | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | |
Other earning assets
|
| | | | 254 | | | | | | (142) | | | | | | (210) | | | | | | (98) | | |
Total interest income
|
| | | | 488 | | | | | | (744) | | | | | | (216) | | | | | | (472) | | |
(Increase) decrease in interest expense: | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing demand
|
| | | | 62 | | | | | | (112) | | | | | | (40) | | | | | | (90) | | |
Money market
|
| | | | 123 | | | | | | (469) | | | | | | (105) | | | | | | (451) | | |
Savings
|
| | | | 17 | | | | | | (39)(14) | | | | | | (35) | | | | | | | | |
Time certificates of deposit
|
| | | | (3) | | | | | | (49) | | | | | | 1 | | | | | | (51) | | |
Repurchase agreements
|
| | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | |
Other borrowings
|
| | | | (0) | | | | | | (1) | | | | | | 0 | | | | | | (1) | | |
Total interest expense
|
| | | | 200 | | | | | | (670) | | | | | | (158) | | | | | | (627) | | |
Net interest income differential
|
| | | $ | 288 | | | | | $ | (74) | | | | | $ | (58) | | | | | | 155 | | |
| | |
June 30, 2021
|
| |
June 30, 2020
|
| ||||||||||||||||||
| | |
Amount
|
| |
Percent
of Total |
| |
Amount
|
| |
Percent
of Total |
| ||||||||||||
Salaries and employee benefits
|
| | | $ | 2,544 | | | | | | 60% | | | | | $ | 2,029 | | | | | | 57% | | |
Occupancy and equipment
|
| | | | 385 | | | | | | 9% | | | | | | 373 | | | | | | 10% | | |
Advertising and public relations
|
| | | | 519 | | | | | | 12% | | | | | | 532 | | | | | | 15% | | |
Other operating expense
|
| | | | 774 | | | | | | 18% | | | | | | 649 | | | | | | 18% | | |
Total noninterest expense
|
| | | $ | 4,222 | | | | | | | | | | | $ | 3,583 | | | | | | | | |
As a percentage of average total interest-earning assets
|
| | | | 2.11% | | | | | | | | | | | | 2.23% | | | | | | | | |
Efficiency ratio
|
| | | | 58.04% | | | | | | | | | | | | 53.40% | | | | | | | | |
| | |
Ratio at
June 30, 2021 |
| |
Ratio at
June 30, 2020 |
| |
Minimum
Requirement for “Adequately Capitalized” Institution plus Capital Conservation Buffer |
| |
Minimum
Requirement for “Well-Capitalized” Institution at June 30, 2021 |
| ||||||||||||
Common Equity Tier 1 Risk-Based Capital Ratio
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Rocky Mountain Bank
|
| | | | 15.4% | | | | | | 15.0% | | | | | | 7.0% | | | | | | 6.5% | | |
Tier 1 Risk-Based Capital Ratio
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Rocky Mountain Bank
|
| | | | 15.4% | | | | | | 15.0% | | | | | | 8.5% | | | | | | 8% | | |
Total Risk-Based Capital Ratio
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Rocky Mountain Bank
|
| | | | 16.7% | | | | | | 16.2% | | | | | | 10.5% | | | | | | 10% | | |
Leverage Ratio
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Rocky Mountain Bank
|
| | | | 9.9% | | | | | | 10.6% | | | | | | 4.0% | | | | | | 5.0% | | |
| | |
June 30,
2021 |
| |
June 30,
2020 |
| ||||||||||||||||||
| | |
Amortized
Cost |
| |
Fair Value
|
| |
Amortized
Cost |
| |
Fair Value
|
| ||||||||||||
| | |
(Dollars in Thousands)
|
| |||||||||||||||||||||
Available for sale | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government agency securities
|
| | | $ | 499 | | | | | $ | 513 | | | | | $ | 996 | | | | | $ | 1,028 | | |
U.S. Treasury
|
| | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | |
SBA loan pools
|
| | | | 3,163 | | | | | | 3,228 | | | | | | 3,253 | | | | | | 3,298 | | |
U.S. agency mortgage-backed securities
|
| | | | 9,118 | | | | | | 9,329 | | | | | | 8,268 | | | | | | 8,752 | | |
Total
|
| | | $ | 12,781 | | | | | $ | 13,070 | | | | | $ | 12,517 | | | | | $ | 13,077 | | |
| | |
June 30,
2021 |
| |
June 30,
2020 |
| ||||||
| | |
(Dollars in Thousands)
|
| |||||||||
Commercial and residential real estate
|
| | | $ | 183,784 | | | | | $ | 177,912 | | |
Commercial
|
| | | | 67,610 | | | | | | 59,445 | | |
Consumer
|
| | | | 15,346 | | | | | | 35,461 | | |
Other
|
| | | | 69 | | | | | | 47 | | |
Loans, held for investment, net of deferred costs and fees
|
| | | | 266,809 | | | | | | 272,865 | | |
Less allowance for loan losses
|
| | | | (5,426) | | | | | | (4,157) | | |
Net loans, held for investment
|
| | | $ | 261,383 | | | | | $ | 268,708 | | |
| | |
Six Months Ended June 30,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
| | |
(Dollars in Thousands)
|
| |||||||||
Balance, beginning of period (January 1, 2021/2020)
|
| | | $ | 5,699 | | | | | $ | 2,832 | | |
Total loan charge-offs
|
| | | | (381) | | | | | | (1,246) | | |
Total loan recoveries
|
| | | | 108 | | | | | | 172 | | |
Net loan recoveries (charge-offs)
|
| | | | (273) | | | | | | (1,074) | | |
Provision (credit) for loan losses
|
| | | | 0 | | | | | | 2,400 | | |
Balance, end of period
|
| | | $ | 5,426 | | | | | $ | 4,157 | | |
| | |
June 30, 2021
|
| |
June 30, 2020
|
| ||||||
| | |
(Dollars in Thousands)
|
| |||||||||
Commitments to extend credit
|
| | | $ | 63,051 | | | | | $ | 34,337 | | |
Letters of credit
|
| | | | 0 | | | | | | 15 | | |
Total
|
| | | $ | 63,051 | | | | | $ | 34,351 | | |
| | |
June 30, 2021
|
| |||
| | |
(Dollars in Thousands)
|
| |||
Three months or less
|
| | | $ | 7,549 | | |
Over three months through six months
|
| | | | 3,912 | | |
Over six months through 12 months
|
| | | | 10,898 | | |
Over 12 months
|
| | | | 8,363 | | |
Total
|
| | | $ | 30,722 | | |
Directors, Executive Officers and 5% Shareholders
|
| |
Amount and Nature
of Beneficial Ownership of Common Stock(1) |
| |
Ownership
as % of Common Stock Outstanding(2) |
| ||||||
Daniel Ahn
|
| | | | 1,473,885(3) | | | | | | 5.00% | | |
JH Davenport, III
|
| | | | 2,739,787 | | | | | | 9.29% | | |
Gerald Dorros (director)
|
| | | | 620,833(4) | | | | | | 2.11% | | |
Mark Hendrickson (director, vice-chairman and treasurer)
|
| | | | 84,900 | | | | | | * | | |
Joe Moglia
|
| | | | 2,639,787 | | | | | | 8.96% | | |
Julian D. Saul Family Irrevocable Trust dated 6/1/98
|
| | | | 2,739,787(5) | | | | | | 9.29% | | |
Aaron L. Stevens (director)
|
| | | | 6,273,341 | | | | | | 21.28% | | |
Allan R. Tessler (director, chairman and CEO)
|
| | | | 4,289,061(6) | | | | | | 14.55% | | |
Johnathan Wylie (director)
|
| | | | 34,783(7) | | | | | | * | | |
All Directors and Executive Officers as a Group (5 persons)
|
| | | | 11,302,918 | | | | | | 38.34% | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(in thousands)
|
| |||||||||
ASSETS
|
| | | ||||||||||
Cash and due from banks
|
| | | $ | 3,426 | | | | | $ | 5,981 | | |
Interest-bearing deposits
|
| | | | 109,392 | | | | | | 33,114 | | |
Federal funds sold
|
| | | | 456 | | | | | | 724 | | |
Total cash and cash equivalents
|
| | | | 113,274 | | | | | | 39,819 | | |
Certificates of deposit in banks
|
| | | | 980 | | | | | | 1,220 | | |
Investment securities available for sale
|
| | | | 13,269 | | | | | | 14,851 | | |
Investment securities held to maturity
|
| | | | — | | | | | | 2,596 | | |
Nonmarketable equity securities
|
| | | | 1,304 | | | | | | 1,307 | | |
Loans held for sale
|
| | | | 11,773 | | | | | | 4,219 | | |
Loans
|
| | | | 253,740 | | | | | | 235,108 | | |
Less allowance for loan losses
|
| | | | (5,699) | | | | | | (2,832) | | |
Net loans
|
| | | | 248,041 | | | | | | 232,276 | | |
Premises and equipment, net
|
| | | | 13,802 | | | | | | 14,057 | | |
Real estate held for sale
|
| | | | — | | | | | | 306 | | |
Intangible assets
|
| | | | 2,150 | | | | | | 2,182 | | |
Accrued interest receivable
|
| | | | 911 | | | | | | 855 | | |
Other assets
|
| | | | 2,048 | | | | | | 1,546 | | |
| | | | $ | 407,552 | | | | | $ | 315,234 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
| | | ||||||||||
Liabilities
|
| | | | | | | | | | | | |
Deposits
|
| | | | | | | | | | | | |
Noninterest-bearing
|
| | | $ | 39,508 | | | | | $ | 33,561 | | |
Interest-bearing
|
| | | | 323,679 | | | | | | 240,539 | | |
Total deposits
|
| | | | 363,187 | | | | | | 274,100 | | |
Debentures payable
|
| | | | 3,593 | | | | | | 3,593 | | |
Accrued interest payable
|
| | | | 37 | | | | | | 63 | | |
Other liabilities
|
| | | | 3,159 | | | | | | 1,016 | | |
Total liabilities
|
| | | | 369,976 | | | | | | 278,772 | | |
Commitments (note 14)
|
| | | | | | | | | | | | |
Stockholders’ equity
|
| | | | | | | | | | | | |
Common stock – no par value; 50,000,000 shares authorized; 29,477,707 shares
issued and outstanding |
| | | | 30,250 | | | | | | 30,152 | | |
Retained earnings
|
| | | | 9,062 | | | | | | 8,210 | | |
Note receivable for common stock
|
| | | | (2,120) | | | | | | (2,120) | | |
Accumulated other comprehensive income
|
| | | | 384 | | | | | | 220 | | |
Total stockholders’ equity
|
| | | | 37,576 | | | | | | 36,462 | | |
| | | | $ | 407,552 | | | | | $ | 315,234 | | |
| | |
Years ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Interest income | | | | | | | | | | | | | |
Loans, including fees
|
| | | $ | 12,930 | | | | | $ | 13,013 | | |
Taxable investment securities
|
| | | | 506 | | | | | | 432 | | |
Nonmarketable equity securities
|
| | | | 67 | | | | | | 68 | | |
Certificates of deposit in banks
|
| | | | 35 | | | | | | 39 | | |
Interest-bearing cash and cash equivalents
|
| | | | 208 | | | | | | 1,002 | | |
Total interest income
|
| | | | 13,746 | | | | | | 14,554 | | |
Interest expense | | | | | | | | | | | | | |
Deposits
|
| | | | 1,690 | | | | | | 2,174 | | |
Debentures payable
|
| | | | 216 | | | | | | 216 | | |
Total interest expense
|
| | | | 1,906 | | | | | | 2,390 | | |
Net interest income
|
| | | | 11,840 | | | | | | 12,164 | | |
Provision for loan losses
|
| | | | 4,600 | | | | | | 2,410 | | |
Net interest income after provision for loan losses
|
| | | | 7,240 | | | | | | 9,754 | | |
Noninterest income | | | | | | | | | | | | | |
Service charges on deposit accounts
|
| | | | 152 | | | | | | 171 | | |
Mortgage banking
|
| | | | 1,020 | | | | | | 488 | | |
Net loss on redemption of investment securities
|
| | | | (80) | | | | | | — | | |
Other noninterest income
|
| | | | 742 | | | | | | 701 | | |
| | | | | 1,834 | | | | | | 1,360 | | |
Noninterest expense | | | | | | | | | | | | | |
Salaries and employee benefits
|
| | | | 4,534 | | | | | | 4,089 | | |
Occupancy and equipment
|
| | | | 743 | | | | | | 712 | | |
Data processing and software
|
| | | | 1,140 | | | | | | 908 | | |
Real estate held for sale, net
|
| | | | 181 | | | | | | 78 | | |
Amortization of core deposit intangible
|
| | | | 31 | | | | | | 188 | | |
Other noninterest expense
|
| | | | 1,339 | | | | | | 1,377 | | |
| | | | | 7,968 | | | | | | 7,352 | | |
Income before income tax expense
|
| | | | 1,106 | | | | | | 3,762 | | |
Income tax expense
|
| | | | 254 | | | | | | 788 | | |
NET INCOME
|
| | | $ | 852 | | | | | $ | 2,974 | | |
| | |
Years ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Net income
|
| | | $ | 852 | | | | | $ | 2,974 | | |
Other comprehensive income | | | | | | | | | | | | | |
Net change in unrealized gains and losses on securities available for sale
|
| | | | 207 | | | | | | 266 | | |
Tax effect
|
| | | | (43) | | | | | | (56) | | |
Total other comprehensive income
|
| | | | 164 | | | | | | 210 | | |
TOTAL COMPREHENSIVE INCOME
|
| | | $ | 1,016 | | | | | $ | 3,184 | | |
| | |
Common
Stock |
| |
Retained
earnings |
| |
Note
receivable for common stock |
| |
Accumulated
other comprehensive income |
| |
Total
|
| |||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||
Balance at December 31, 2018
|
| | | $ | 28,019 | | | | | $ | 5,486 | | | | | $ | — | | | | | $ | 10 | | | | | $ | 33,515 | | |
Net income
|
| | | | — | | | | | | 2,974 | | | | | | — | | | | | | — | | | | | | 2,974 | | |
Other comprehensive income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 210 | | | | | | 210 | | |
Issuance of 1,473,885 shares of common stock in exchange for a note receivable
|
| | | | 2,120 | | | | | | — | | | | | | (2,120) | | | | | | — | | | | | | — | | |
Stock-based compensation expense
|
| | | | 13 | | | | | | — | | | | | | — | | | | | | — | | | | | | 13 | | |
Dividends paid
|
| | | | — | | | | |
|
(250)
|
| | | | | — | | | | | | — | | | | | | (250) | | |
Balance at December 31, 2019
|
| | | | 30,152 | | | | | | 8,210 | | | | | | (2,120) | | | | | | 220 | | | | | | 36,462 | | |
Net income
|
| | | | — | | | | | | 852 | | | | | | — | | | | | | — | | | | | | 852 | | |
Other comprehensive income
|
| | |
|
—
|
| | | | | — | | | | | | — | | | | | | 164 | | | | | | 164 | | |
Stock-based compensation expense
|
| | | | 98 | | | | | | — | | | | | | — | | | | | | — | | | | | | 98 | | |
Balance at December 31, 2020
|
| | | $ | 30,250 | | | | | $ | 9,062 | | | | | $ | (2,120) | | | | | $ | 384 | | | | | $ | 37,576 | | |
| | |
Years ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Cash flows from operating activities | | | | | | | | | | | | | |
Net income
|
| | | $ | 852 | | | | | $ | 2,974 | | |
Adjustments to reconcile net loss to net cash from operating activities
|
| | | | | | | | | | | | |
Depreciation and software amortization
|
| | | | 585 | | | | | | 621 | | |
Amortization of core deposit intangible
|
| | | | 32 | | | | | | 188 | | |
Net amortization on investment securities
|
| | | | 38 | | | | | | 81 | | |
Provision for loan losses
|
| | | | 4,600 | | | | | | 2,410 | | |
Net loss on sale and redemptions of investment securities
|
| | | | 80 | | | | | | — | | |
Deferred income tax expense (benefit)
|
| | | | (642) | | | | | | 53 | | |
Valuation allowances on real estate held for sale
|
| | | | 306 | | | | | | 51 | | |
Gain on sale of real estate held for sale
|
| | | | (141) | | | | | | (1) | | |
Stock-based compensation expense
|
| | | | 98 | | | | | | 13 | | |
Net change in loans held for sale
|
| | | | (7,554) | | | | | | (4,219) | | |
Net change in other assets and liabilities
|
| | | | 2,244 | | | | | | (278) | | |
Net cash provided by operating activities
|
| | | | 498 | | | | | | 1,893 | | |
Cash flows from investing activities | | | | | | | | | | | | | |
Redemption of certificates of deposit in banks
|
| | | | 240 | | | | | | 225 | | |
Purchase of securities available for sale
|
| | | | (5,553) | | | | | | (2,056) | | |
Maturities, calls and paydowns of securities available for sale
|
| | | | 7,322 | | | | | | 3,148 | | |
Purchase of securities held to maturity
|
| | | | — | | | | | | (2,600) | | |
Maturities, calls and paydowns of securities held to maturity
|
| | | | 2,498 | | | | | | — | | |
Purchase of nonmarketable equity securities
|
| | | | — | | | | | | (30) | | |
Redemption of nonmarketable equity securities
|
| | | | 3 | | | | | | — | | |
Loan originations and principal collections, net
|
| | | | (21,680) | | | | | | (24,633) | | |
Proceeds from sale of real estate held for sale
|
| | | | 1,456 | | | | | | 116 | | |
Acquisition of premises, equipment and software
|
| | | | (416) | | | | | | (147) | | |
Net cash used in investing activities
|
| | | | (16,130) | | | | | | (25,977) | | |
Cash flows from financing activities | | | | | | | | | | | | | |
Net change in deposits
|
| | | | 89,087 | | | | | | (5,655) | | |
Dividends paid
|
| | | | — | | | | | | (250) | | |
Net cash provided by (used in) investing activities
|
| | | | 89,087 | | | | | | (5,905) | | |
Change in cash and cash equivalents
|
| | | | 73,455 | | | | | | (29,989) | | |
Cash and cash equivalents at beginning of year
|
| | | | 39,819 | | | | | | 69,808 | | |
Cash and cash equivalents at end of year
|
| | | $ | 113,274 | | | | | $ | 39,819 | | |
Supplemental Disclosures of Cash Flow Information | | | | | | | | | | | | | |
Cash paid during the year for interest
|
| | | $ | 1,932 | | | | | $ | 2,374 | | |
Cash paid during the year for income taxes
|
| | | | 688 | | | | | | 940 | | |
Supplemental Disclosures of Non-Cash Transactions | | | | | | | | | | | | | |
Loan balances transferred to real estate held for sale
|
| | | $ | 1,315 | | | | | $ | 115 | | |
| | |
December 31, 2020
|
| |||||||||||||||||||||
| | |
Amortized
Cost |
| |
Gross
Unrealized Gains |
| |
Gross
Unrealized Losses |
| |
Fair
Value |
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Debt securities available for sale
|
| ||||||||||||||||||||||||
U.S. government agencies
|
| | | $ | 998 | | | | | $ | 23 | | | | | $ | — | | | | | $ | 1,021 | | |
U.S. Treasury
|
| | | | 1,000 | | | | | | — | | | | | | — | | | | | | 1,000 | | |
SBA loan pools
|
| | | | 2,945 | | | | | | 77 | | | | | | (20) | | | | | | 3,002 | | |
U.S. agency mortgage-backed
|
| | | | 7,840 | | | | | | 409 | | | | | | (3) | | | | | | 8,246 | | |
| | | | $ | 12,783 | | | | | $ | 509 | | | | | $ | (23) | | | | | $ | 13,269 | | |
| | |
December 31, 2019
|
| |||||||||||||||||||||
| | |
Amortized
Cost |
| |
Gross
Unrealized Gains |
| |
Gross
Unrealized Losses |
| |
Fair
Value |
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Debt securities available for sale
|
| | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government agencies
|
| | | $ | 1,495 | | | | | $ | 14 | | | | | $ | (1) | | | | | $ | 1,508 | | |
SBA loan pools
|
| | | | 3,710 | | | | | | 40 | | | | | | (31) | | | | | | 3,719 | | |
U.S. agency mortgage-backed
|
| | | | 9,367 | | | | | | 262 | | | | | | (5) | | | | | | 9,624 | | |
| | | | | 14,572 | | | | | | 316 | | | | | | (37) | | | | | | 14,851 | | |
Debt securities held to maturity
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Private issue short-tem notes
|
| | | | 2,596 | | | | | | — | | | | | | — | | | | | | 2,596 | | |
| | | | $ | 17,168 | | | | | $ | 316 | | | | | $ | (37) | | | | | $ | 17,447 | | |
| | |
Available for Sale
|
| |||||||||
| | |
Amortized
Cost |
| |
Fair Value
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Due in one year or less
|
| | | $ | 1,499 | | | | | $ | 1,502 | | |
Due after one through five years
|
| | | | 499 | | | | | | 519 | | |
Due after five years through ten years
|
| | | | — | | | | | | — | | |
Due after ten years
|
| | | | — | | | | | | — | | |
| | | | | 1,998 | | | | | | 2,021 | | |
Mortgage-backed and SBA loan pools
|
| | | | 10,785 | | | | | | 11,248 | | |
| | | | $ | 12,783 | | | | | $ | 13,269 | | |
| | |
December 31, 2020
|
| |||||||||||||||||||||
| | |
Less than 12 months
|
| |
Over 12 months
|
| ||||||||||||||||||
| | |
Gross
Unrealized Losses |
| |
Fair Value
|
| |
Gross
Unrealized Losses |
| |
Fair Value
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Debt securities available for sale
|
| | | | | | | | | | | | | | | | | | | | | | | | |
SBA loan pools
|
| | | $ | — | | | | | $ | — | | | | | $ | (20) | | | | | $ | 1,503 | | |
U.S. agency mortgage-backed
|
| | | | (3) | | | | | | 1,051 | | | | | | — | | | | | | — | | |
| | | | $ | (3) | | | | | $ | 1,051 | | | | | $ | (20) | | | | | $ | 1,503 | | |
| | |
December 31, 2019
|
| |||||||||||||||||||||
| | |
Less than 12 months
|
| |
Over 12 months
|
| ||||||||||||||||||
| | |
Gross
Unrealized Losses |
| |
Fair Value
|
| |
Gross
Unrealized Losses |
| |
Fair Value
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Debt securities available for sale
|
| | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government agencies
|
| | | $ | — | | | | | $ | — | | | | | $ | (1) | | | | | $ | 499 | | |
SBA loan pools
|
| | | | (1) | | | | | | 115 | | | | | | (30) | | | | | | 1,961 | | |
U.S. agency mortgage-backed
|
| | | | (5) | | | | | | 1,589 | | | | | | — | | | | | | — | | |
| | | | $ | (6) | | | | | $ | 1,704 | | | | | $ | (31) | | | | | $ | 2,460 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Federal Reserve Bank – capital stock
|
| | | $ | 926 | | | | | $ | 926 | | |
Federal Home Loan Bank of Des Moines – common stock
|
| | | | 378 | | | | | | 381 | | |
| | | | $ | 1,304 | | | | | $ | 1,307 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Real Estate | | | | | | | | | | | | | |
Commercial
|
| | | $ | 68,326 | | | | | $ | 63,861 | | |
Construction, land and land development
|
| | | | 29,818 | | | | | | 21,868 | | |
Residential 1 – 4 family
|
| | | | 61,326 | | | | | | 76,570 | | |
Residential multifamily
|
| | | | 5,715 | | | | | | 7,238 | | |
Farmland
|
| | | | 1,901 | | | | | | 2,097 | | |
| | | | | 167,086 | | | | | | 171,634 | | |
Commercial, non real estate
|
| | | | 62,131 | | | | | | 19,474 | | |
Consumer participations
|
| | | | 22,959 | | | | | | 41,444 | | |
Consumer
|
| | | | 1,299 | | | | | | 2,037 | | |
Other
|
| | | | 24 | | | | | | 878 | | |
Total loans
|
| | | | 253,499 | | | | | | 235,467 | | |
Less net deferred loan fees (costs)
|
| | | | 241 | | | | | | (359) | | |
| | | | $ | 253,740 | | | | | $ | 235,108 | | |
| | |
Construction,
Land and Development |
| |
Commercial
Real Estate |
| |
Residential
Real Estate |
| |
Other
|
| |
Total
|
| |||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||
Balance at December 31, 2018
|
| | | $ | 115 | | | | | $ | 356 | | | | | $ | 685 | | | | | $ | 2,037 | | | | | $ | 3,193 | | |
Provision (credit) for loan losses
|
| | | | (5) | | | | | | 1,138 | | | | | | 36 | | | | | | 1,241 | | | | | | 2,410 | | |
(Charge-offs)
|
| | | | — | | | | | | (800) | | | | | | — | | | | | | (2,307) | | | | | | (3,107) | | |
Recoveries
|
| | | | — | | | | | | — | | | | | | — | | | | | | 336 | | | | | | 336 | | |
Net (charge-offs) recoveries
|
| | | | — | | | | | | (800) | | | | | | — | | | | | | (1,971) | | | | | | (2,771) | | |
Balance at December 31, 2019
|
| | | | 110 | | | | | | 694 | | | | | | 721 | | | | | | 1,307 | | | | | | 2,832 | | |
Provision (credit) for loan losses
|
| | | | 97 | | | | | | (79) | | | | | | (129) | | | | | | 4,711 | | | | | | 4,600 | | |
(Charge-offs)
|
| | | | — | | | | | | — | | | | | | — | | | | | | (2,060) | | | | | | (2,060) | | |
Recoveries
|
| | | | — | | | | | | — | | | | | | — | | | | | | 327 | | | | | | 327 | | |
Net (charge-offs) recoveries
|
| | | | — | | | | | | — | | | | | | — | | | | | | (1,733) | | | | | | (1,733) | | |
Balance at December 31, 2020
|
| | | $ | 207 | | | | | $ | 615 | | | | | $ | 592 | | | | | $ | 4,285 | | | | | $ | 5,699 | | |
| | |
December 31, 2020
|
| |||||||||||||||||||||||||||
| | |
Construction,
Land and Development |
| |
Commercial
Real Estate |
| |
Residential
Real Estate |
| |
Other
|
| |
Total
|
| |||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||
Allocation of Allowance to: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Impaired loans – evaluated individually
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Impaired loans – evaluated collectively
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total impaired loans
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Unimpaired loans – evaluated collectively
|
| | | | 207 | | | | | | 615 | | | | | | 592 | | | | | | 4,285 | | | | | | 5,699 | | |
| | | | $ | 207 | | | | | $ | 615 | | | | | $ | 592 | | | | | $ | 4,285 | | | | | $ | 5,699 | | |
Recorded Investment In: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Impaired loans – evaluated individually
|
| | | $ | — | | | | | $ | 73 | | | | | $ | — | | | | | $ | 7 | | | | | $ | 80 | | |
Impaired loans – evaluated collectively
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total impaired loans
|
| | | | — | | | | | | 73 | | | | | | — | | | | | | 7 | | | | | | 80 | | |
Unimpaired loans – evaluated collectively
|
| | | | 29,818 | | | | | | 70,154 | | | | | | 67,041 | | | | | | 86,406 | | | | | | 253,419 | | |
| | | | $ | 29,818 | | | | | $ | 70,227 | | | | | $ | 67,041 | | | | | $ | 86,413 | | | | | $ | 253,499 | | |
| | |
December 31, 2019
|
| |||||||||||||||||||||||||||
| | |
Construction,
Land and Development |
| |
Commercial
Real Estate |
| |
Residential
Real Estate |
| |
Other
|
| |
Total
|
| |||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||
Allocation of Allowance to: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Impaired loans – evaluated individually
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Impaired loans – evaluated collectively
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total impaired loans
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Unimpaired loans – evaluated collectively
|
| | | | 110 | | | | | | 694 | | | | | | 721 | | | | | | 1,307 | | | | | | 2,832 | | |
| | | | $ | 110 | | | | | $ | 694 | | | | | $ | 721 | | | | | $ | 1,307 | | | | | $ | 2,832 | | |
Recorded Investment In: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Impaired loans – evaluated individually
|
| | | $ | — | | | | | $ | 1,396 | | | | | $ | 1 | | | | | $ | 17 | | | | | $ | 1,414 | | |
Impaired loans – evaluated collectively
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total impaired loans
|
| | | | — | | | | | | 1,396 | | | | | | 1 | | | | | | 17 | | | | | | 1,414 | | |
Unimpaired loans – evaluated collectively
|
| | | | 21,868 | | | | | | 64,562 | | | | | | 83,807 | | | | | | 63,816 | | | | | | 234,053 | | |
| | | | $ | 21,868 | | | | | $ | 65,958 | | | | | $ | 83,808 | | | | | $ | 63,833 | | | | | $ | 235,467 | | |
| | |
December 31, 2020
|
| |
Year Ended
December 31, 2020 |
| ||||||||||||||||||||||||||||||
| | |
Recorded
Investment in Impaired Loans With No Valuation Allowance |
| |
Recorded
Investment in Impaired Loans With A Valuation Allowance |
| |
Total
Impaired Loans |
| |
Valuation
Allowance on Impaired Loans |
| |
Commitments
to Extend Credit on Impaired Loans |
| |
Average Impaired
Loans |
| ||||||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||||||||
Commercial Real Estate
Non-owner occupied |
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 698 | | |
Residential Real Estate
1 – 4 family first lien |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1 | | |
Other
Consumer and other |
| | | | 7 | | | | | | — | | | | | | 7 | | | | | | — | | | | | | — | | | | | | 12 | | |
| | | | $ | 7 | | | | | $ | — | | | | | $ | 7 | | | | | $ | — | | | | | $ | — | | | | | $ | 711 | | |
| | |
December 31, 2019
|
| |
Year Ended
December 31, 2019 |
| ||||||||||||||||||||||||||||||
| | |
Recorded
Investment in Impaired Loans With No Valuation Allowance |
| |
Recorded
Investment in Impaired Loans With A Valuation Allowance |
| |
Total
Impaired Loans |
| |
Valuation
Allowance on Impaired Loans |
| |
Commitments
to Extend Credit on Impaired Loans |
| |
Average
Impaired Loans |
| ||||||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||||||||
Commercial Real Estate | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Non-owner occupied
|
| | | $ | 1,396 | | | | | $ | — | | | | | $ | 1,396 | | | | | $ | — | | | | | $ | — | | | | | $ | 746 | | |
Residential Real Estate | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1 – 4 family first lien
|
| | | | 1 | | | | | | — | | | | | | 1 | | | | | | — | | | | | | — | | | | | | 64 | | |
Other | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commerical
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 957 | | |
Consumer and other
|
| | | | 17 | | | | | | — | | | | | | 17 | | | | | | — | | | | | | — | | | | | | 22 | | |
| | | | $ | 1,414 | | | | | $ | — | | | | | $ | 1,414 | | | | | $ | — | | | | | $ | — | | | | | $ | 1,789 | | |
| | |
December 31, 2020
|
| |
December 31, 2019
|
| ||||||||||||||||||
| | |
Recorded
investment |
| |
Valuation
allowance |
| |
Recorded
investment |
| |
Valuation
allowance |
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Commercial Real Estate | | | | | | | | | | | | | | | | | | | | | | | | | |
Non-owner occupied
|
| | | $ | 73 | | | | | $ | — | | | | | $ | 80 | | | | | $ | — | | |
Residential Real Estate | | | | | | | | | | | | | | | | | | | | | | | | | |
1 – 4 family first lien
|
| | | | — | | | | | | — | | | | | | 1 | | | | | | — | | |
| | | | $ | 73 | | | | | $ | — | | | | | $ | 81 | | | | | $ | — | | |
| | |
December 31, 2020
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Loans By Past Due and Performance Status
|
| |
Loans By Credit Quality Indicator
|
| ||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Accruing Loans
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
Classified
|
| ||||||||||||||||||||||||
| | |
Current
|
| |
30 – 89 Days
Past Due |
| |
90 Days
or More Past Due |
| |
Nonaccrual
Loans |
| |
Total Loans
|
| |
Non-
classified |
| |
Criticized
|
| |
Unimpaired
|
| |
Impaired
|
| |||||||||||||||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||
Construction, Land and Development
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1 – 4 family
|
| | | $ | 9,809 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 9,809 | | | | | $ | 9,809 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Other
|
| | | | 20,009 | | | | | | — | | | | | | — | | | | | | — | | | | | | 20,009 | | | | | | 20,009 | | | | | | — | | | | | | — | | | | | | — | | |
Commercial Real Estate | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Owner occupied
|
| | | | 29,935 | | | | | | — | | | | | | — | | | | | | — | | | | | | 29,935 | | | | | | 29,935 | | | | | | — | | | | | | — | | | | | | — | | |
Non-owner occupied
|
| | | | 38,391 | | | | | | — | | | | | | — | | | | | | — | | | | | | 38,391 | | | | | | 38,318 | | | | | | — | | | | | | — | | | | | | 73 | | |
Farmland
|
| | | | 1,901 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,901 | | | | | | 1,901 | | | | | | — | | | | | | — | | | | | | — | | |
Residential Real Estate | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1 – 4 family first lien
|
| | | | 48,318 | | | | | | — | | | | | | — | | | | | | — | | | | | | 48,318 | | | | | | 48,318 | | | | | | — | | | | | | — | | | | | | — | | |
Multifamily
|
| | | | 5,715 | | | | | | — | | | | |
|
—
|
| | | | | — | | | | | | 5,715 | | | | | | 5,715 | | | | | | — | | | | | | — | | | | | | — | | |
Other
|
| | | | 13,008 | | | | | | — | | | | | | — | | | | | | — | | | | | | 13,008 | | | | | | 13,008 | | | | | | — | | | | | | — | | | | | | — | | |
Other | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commerical
|
| | | | 62,131 | | | | | | — | | | | |
|
—
|
| | | |
|
—
|
| | | | | 62,131 | | | | | | 61,695 | | | | | | — | | | | | | 436 | | | | | | — | | |
Consumer participations
|
| | | | 22,672 | | | | | | 194 | | | | | | 93 | | | | | | — | | | | | | 22,959 | | | | | | 22,866 | | | | | | — | | | | | | 93 | | | | | | — | | |
Consumer and other
|
| | | | 1,316 | | | | | | — | | | | | | — | | | | | | 7 | | | | | | 1,323 | | | | | | 1,316 | | | | | | — | | | | | | — | | | | | | 7 | | |
| | | | $ | 253,205 | | | | | $ | 194 | | | | | $ | 93 | | | | | $ | 7 | | | | | $ | 253,499 | | | | | $ | 252,890 | | | | | $ | — | | | | | $ | 529 | | | | | $ | 80 | | |
| | |
December 31, 2019
|
| | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Loans By Past Due and Performance Status
|
| |
Loans By Credit Quality Indicator
|
| | | | ||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Accruing Loans
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
Classified
|
| | | | ||||||||||||||||||||||||
| | |
Current
|
| |
30 – 89 Days
Past Due |
| |
90 Days
or More Past Due |
| |
Nonaccrual
Loans |
| |
Total Loans
|
| |
Non-
classified |
| |
Criticized
|
| |
Unimpaired
|
| |
Impaired
|
| | |||||||||||||||||||||||||||||
| | |
(in thousands)
|
| | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||||
Construction, Land and
Development |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
1 – 4 family
|
| | | $ | 6,537 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 6,537 | | | | | $ | 6,537 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | ||
Other
|
| | | | 15,331 | | | | | | — | | | | | | — | | | | | | — | | | | | | 15,331 | | | | | | 15,331 | | | | | | — | | | | | | — | | | | | | — | | | | ||
Commercial Real Estate
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Owner occupied
|
| | | | 34,139 | | | | | | — | | | | | | — | | | | | | — | | | | | | 34,139 | | | | | | 34,139 | | | | | | — | | | | | | — | | | | | | — | | | | ||
Non-owner occupied
|
| | | | 28,406 | | | | | | — | | | | | | — | | | | | | 1,316 | | | | | | 29,722 | | | | | | 28,326 | | | | | | — | | | | | | — | | | | | | 1,396 | | | | ||
Farmland
|
| | | | 2,097 | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,097 | | | | | | 2,097 | | | | | | — | | | | | | — | | | | | | — | | | | ||
Residential Real Estate | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
1 – 4 family first lien
|
| | | | 65,637 | | | | | | — | | | | | | — | | | | | | — | | | | | | 65,637 | | | | | | 65,636 | | | | | | — | | | | | | — | | | | | | 1 | | | | ||
Multifamily
|
| | | | 7,238 | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,238 | | | | | | 7,238 | | | | | | — | | | | | | — | | | | | | — | | | | ||
Other
|
| | | | 10,933 | | | | | | — | | | | | | — | | | | | | — | | | | | | 10,933 | | | | | | 10,933 | | | | | | — | | | | | | — | | | | | | — | | | | ||
Other | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Commerical
|
| | | | 19,474 | | | | | | — | | | | | | — | | | | | | — | | | | | | 19,474 | | | | | | 19,474 | | | | | | — | | | | | | — | | | | | | — | | | | ||
Consumer participations
|
| | | | 40,752 | | | | | | 436 | | | | |
|
256
|
| | | | | — | | | | | | 41,444 | | | | | | 41,188 | | | | | | — | | | | | | 256 | | | | | | — | | | | ||
Consumer and other
|
| | | | 2,898 | | | | | | — | | | | |
|
—
|
| | | | | 17 | | | | | | 2,915 | | | | | | 2,898 | | | | | | — | | | | | | — | | | | | | 17 | | | | ||
| | | | $ | 233,442 | | | | | $ | 436 | | | | | $ | 256 | | | | | $ | 1,333 | | | | | $ | 235,467 | | | | | $ | 233,797 | | | | | $ | — | | | | | $ | 256 | | | | | $ | 1,414 | | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Land
|
| | | $ | 4,610 | | | | | $ | 4,610 | | |
Land improvements
|
| | | | 290 | | | | | | 284 | | |
Buildings
|
| | | | 11,993 | | | | | | 11,993 | | |
Furniture and equipment
|
| | | | 1,692 | | | | | | 1,646 | | |
Construction in progress
|
| | | | 249 | | | | | | 5 | | |
| | | | | 18,834 | | | | | | 18,538 | | |
Less accumulated depreciation
|
| | | | (5,032) | | | | | | (4,481) | | |
| | | | $ | 13,802 | | | | | $ | 14,057 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Balance at beginning of year
|
| | | $ | 306 | | | | | $ | 357 | | |
Transfers from loans
|
| | | | 1,315 | | | | | | 115 | | |
Valuation allowances recorded
|
| | | | (306) | | | | | | (51) | | |
Dispositions
|
| | | | (1,315) | | | | | | (115) | | |
Balance at end of year
|
| | | $ | — | | | | | $ | 306 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Balance at beginning of year
|
| | | $ | 441 | | | | | $ | 390 | | |
Valuation allowances recorded
|
| | | | 306 | | | | | | 51 | | |
Valuation allowances realized
|
| | | | — | | | | | | — | | |
Balance at end of year
|
| | | $ | 747 | | | | | $ | 441 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Valuation allowances recorded
|
| | | $ | 306 | | | | | $ | 51 | | |
Gain on sale
|
| | | | (141) | | | | | | (1) | | |
Net operating expenses
|
| | | | 16 | | | | | | 28 | | |
Net expense
|
| | | $ | 181 | | | | | $ | 78 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Goodwill
|
| | | $ | 2,150 | | | | | $ | 2,150 | | |
Core deposit intangible
|
| | | | 1,505 | | | | | | 1,505 | | |
Less accumulated amortization
|
| | | | (1,505) | | | | | | (1,473) | | |
| | | | | — | | | | | | 32 | | |
| | | | $ | 2,150 | | | | | $ | 2,182 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Current expense
|
| | | $ | 896 | | | | | $ | 735 | | |
Deferred expense (benefit)
|
| | | | (642) | | | | | | 53 | | |
| | | | $ | 254 | | | | | $ | 788 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Taxes at 21% statutory federal tax rate
|
| | | $ | 232 | | | | | $ | 790 | | |
Tax-exempt interest
|
| | | | (19) | | | | | | (9) | | |
Stock-based compensation expense
|
| | | | 21 | | | | | | 3 | | |
Other nondeductible expenses
|
| | | | 20 | | | | | | 4 | | |
Income tax expense
|
| | | $ | 254 | | | | | $ | 788 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Deferred tax assets: | | | | | | | | | | | | | |
Allowance for loan losses
|
| | | $ | 1,197 | | | | | $ | 595 | | |
Premises and equipment
|
| | | | 286 | | | | | | 280 | | |
Core deposit intangible
|
| | | | 130 | | | | | | 144 | | |
Real estate held for sale
|
| | | | 157 | | | | | | 93 | | |
| | | | | 1,770 | | | | | | 1,112 | | |
Deferred tax liabilities: | | | | ||||||||||
Unrealized gain on investment securities
|
| | | | (102) | | | | | | (59) | | |
Goodwill
|
| | | | (140) | | | | | | (124) | | |
| | | | | (242) | | | | | | (183) | | |
Net deferred tax asset
|
| | | $ | 1,528 | | | | | $ | 929 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Interest-bearing checking and NOW acounts
|
| | | $ | 114,072 | | | | | $ | 76,730 | | |
Money market accounts
|
| | | | 136,036 | | | | | | 112,839 | | |
Savings accounts
|
| | | | 33,049 | | | | | | 19,730 | | |
Time deposits | | | | | | | | | | | | | |
$250,000 and greater
|
| | | | 19,552 | | | | | | 15,088 | | |
Less than $250,000
|
| | | | 20,970 | | | | | | 16,152 | | |
Total time deposits
|
| | | | 40,522 | | | | | | 31,240 | | |
| | | | $ | 323,679 | | | | | $ | 240,539 | | |
Year Ending December 31,
|
| |
(in thousands)
|
| |||
2021
|
| | | $ | 23,816 | | |
2022
|
| | | | 12,252 | | |
2023
|
| | | | 2,765 | | |
2024
|
| | | | 827 | | |
2025
|
| | | | 862 | | |
| | | | $ | 40,522 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Commitments to extend credit
|
| | | $ | 40,128 | | | | | $ | 29,730 | | |
Standby letters of credit
|
| | | | 15 | | | | | | 15 | | |
| | | | $ | 40,143 | | | | | $ | 29,745 | | |
| | |
Actual
|
| |
Minimum required
for capital adequacy purposes |
| |
Required to be
considered well capitalized |
| |||||||||||||||||||||||||||
| | |
Amount
|
| |
Ratio
|
| |
Amount
|
| |
Ratio
|
| |
Amount
|
| |
Ratio
|
| ||||||||||||||||||
| | |
(dollars in thousands)
|
| |||||||||||||||||||||||||||||||||
As of December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total capital (to risk weighted assets)
|
| | | $ | 41,547 | | | | | | 16.5% | | | | | $ | 26,445 | | | | | | 10.5% | | | | | $ | 25,186 | | | | | | 10.0% | | |
Tier 1 capital (to risk weighted assets)
|
| | | | 38,367 | | | | | | 15.2% | | | | | | 21,408 | | | | | | 8.5% | | | | | | 20,149 | | | | | | 8.0% | | |
Common equity tier 1 capital
(to risk weighted assets) |
| | | | 38,367 | | | | | | 15.2% | | | | | | 17,630 | | | | | | 7.0% | | | | | | 16,371 | | | | | | 6.5% | | |
Tier 1 capital (to average assets)
|
| | | | 38,367 | | | | | | 9.3% | | | | | | 16,580 | | | | | | 4.0% | | | | | | 20,725 | | | | | | 5.0% | | |
As of December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total capital (to risk weighted assets)
|
| | | $ | 40,067 | | | | | | 16.6% | | | | | $ | 25,298 | | | | | | 10.5% | | | | | $ | 24,094 | | | | | | 10.0% | | |
Tier 1 capital (to risk weighted assets)
|
| | | | 37,235 | | | | | | 15.5% | | | | | | 20,479 | | | | | | 8.5% | | | | | | 19,275 | | | | | | 8.0% | | |
Common equity tier 1 capital
(to risk weighted assets) |
| | | | 37,235 | | | | | | 15.5% | | | | | | 16,865 | | | | | | 7.0% | | | | | | 15,661 | | | | | | 6.5% | | |
Tier 1 capital (to average assets)
|
| | | | 37,235 | | | | | | 11.8% | | | | | | 12,671 | | | | | | 4.0% | | | | | | 15,839 | | | | | | 5.0% | | |
| | |
Quoted
prices in active markets for identical assets (Level 1) |
| |
Other
observable inputs (Level 2) |
| |
Significant
unobservable inputs (Level 3) |
| |
Carrying
amount |
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | |
Securities Available for Sale
|
| | | | | | | | | | | | | | | | | | | | | | | | |
U.S. Government agency
|
| | | $ | — | | | | | $ | 1,021 | | | | | $ | — | | | | | $ | 1,021 | | |
U.S. Treasury
|
| | | | — | | | | | | 1,000 | | | | | | — | | | | | | 1,000 | | |
SBA loan pools
|
| | | | — | | | | | | 3,002 | | | | | | — | | | | | | 3,002 | | |
U.S. agency mortgage-backed
|
| | | | — | | | | | | 8,246 | | | | | | — | | | | | | 8,246 | | |
| | | | $ | — | | | | | $ | 13,269 | | | | | $ | — | | | | | $ | 13,269 | | |
| | |
Quoted
prices in active markets for identical assets (Level 1) |
| |
Other
observable inputs (Level 2) |
| |
Significant
unobservable inputs (Level 3) |
| |
Carrying
amount |
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | |
Securities Available for Sale
|
| | | | | | | | | | | | | | | | | | | | | | | | |
U.S. Government agency
|
| | | $ | — | | | | | $ | 1,508 | | | | | $ | — | | | | | $ | 1,508 | | |
SBA loan pools
|
| | | | — | | | | | | 3,719 | | | | | | — | | | | | | 3,719 | | |
U.S. agency mortgage-backed
|
| | | | — | | | | | | 9,624 | | | | | | — | | | | | | 9,624 | | |
| | | | $ | — | | | | | $ | 14,851 | | | | | $ | — | | | | | $ | 14,851 | | |
|
| | |
Quoted
prices in active markets for identical assets (Level 1) |
| |
Other
observable inputs (Level 2) |
| |
Significant
unobservable inputs (Level 3) |
| |
Carrying
amount |
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans held for sale
|
| | | $ | — | | | | | $ | — | | | | | $ | 11,773 | | | | | $ | 11,773 | | |
Impaired loans
|
| | | | — | | | | | | — | | | | | | 7 | | | | | | 7 | | |
Real estate held for sale
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans held for sale
|
| | | | — | | | | | | — | | | | | | 4,219 | | | | | | 4,219 | | |
Impaired loans
|
| | | $ | — | | | | | $ | — | | | | | | 1,414 | | | | | $ | 1,414 | | |
Real estate held for sale
|
| | | | — | | | | | | — | | | | | | 306 | | | | | | 306 | | |
| | |
December 31, 2020
|
| |||||||||||||||||||||||||||
| | |
Quoted
prices in active markets for identical assets (Level 1) |
| |
Other
observable inputs (Level 2) |
| |
Significant
unobservable inputs (Level 3) |
| |
Total Fair
Value |
| |
Carrying
amount |
| |||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||
Financial Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 113,274 | | | | | $ | — | | | | | $ | — | | | | | $ | 113,274 | | | | | $ | 113,274 | | |
Certificates of deposits in banks
|
| | | | — | | | | | | 980 | | | | | | — | | | | | | 980 | | | | | | 980 | | |
Investment securities available for sale
|
| | | | — | | | | | | 13,269 | | | | | | — | | | | | | 13,269 | | | | | | 13,269 | | |
Nonmarketable equity securities
|
| | | | — | | | | | | 1,304 | | | | | | — | | | | | | 1,304 | | | | | | 1,304 | | |
Loans held for sale
|
| | | | — | | | | | | 11,773 | | | | | | — | | | | | | 11,773 | | | | | | 11,773 | | |
Loans, net of allowance for loan losses
|
| | | | — | | | | | | — | | | | | | 246,801 | | | | | | 246,801 | | | | | | 248,041 | | |
Accrued interest receivable
|
| | | | — | | | | | | 911 | | | | | | — | | | | | | 911 | | | | | | 911 | | |
Financial Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing deposits
|
| | | | — | | | | | | 39,508 | | | | | | — | | | | | | 39,508 | | | | | | 39,508 | | |
Interest-bearing deposits (non-maturity)
|
| | | | — | | | | | | 283,157 | | | | | | — | | | | | | 283,157 | | | | | | 283,157 | | |
Interest-bearing deposits (time deposits)
|
| | | | — | | | | | | — | | | | | | 40,968 | | | | | | 40,968 | | | | | | 40,522 | | |
Debentures payable
|
| | | | — | | | | | | — | | | | | | 3,593 | | | | | | 3,593 | | | | | | 3,593 | | |
Accrued interest payable
|
| | | | — | | | | | | 37 | | | | | | — | | | | | | 37 | | | | | | 37 | | |
| | |
December 31, 2019
|
| |||||||||||||||||||||||||||
| | |
Quoted
prices in active markets for identical assets (Level 1) |
| |
Other
observable inputs (Level 2) |
| |
Significant
unobservable inputs (Level 3) |
| |
Total Fair
Value |
| |
Carrying
amount |
| |||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||
Financial Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 39,819 | | | | | $ | — | | | | | $ | — | | | | | $ | 39,819 | | | | | $ | 39,819 | | |
Certificates of deposits in banks
|
| | | | — | | | | | | 1,220 | | | | | | — | | | | | | 1,220 | | | | | | 1,220 | | |
Investment securities available for sale
|
| | | | — | | | | | | 14,851 | | | | | | — | | | | | | 14,851 | | | | | | 14,851 | | |
Investment securities held to maturity
|
| | | | — | | | | | | — | | | | | | 2,596 | | | | | | 2,596 | | | | | | 2,596 | | |
Nonmarketable equity securities
|
| | | | — | | | | | | 1,307 | | | | | | — | | | | | | 1,307 | | | | | | 1,307 | | |
Loans held for sale
|
| | | | — | | | | | | 4,219 | | | | | | — | | | | | | 4,219 | | | | | | 4,219 | | |
Loans, net of allowance for loan losses
|
| | | | — | | | | | | — | | | | | | 232,603 | | | | | | 232,603 | | | | | | 232,276 | | |
Accrued interest receivable
|
| | | | — | | | | | | 855 | | | | | | — | | | | | | 855 | | | | | | 855 | | |
| | |
December 31, 2019
|
| |||||||||||||||||||||||||||
| | |
Quoted
prices in active markets for identical assets (Level 1) |
| |
Other
observable inputs (Level 2) |
| |
Significant
unobservable inputs (Level 3) |
| |
Total Fair
Value |
| |
Carrying
amount |
| |||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||
Financial Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing deposits
|
| | | | — | | | | | | 33,561 | | | | | | — | | | | | | 33,561 | | | | | | 33,561 | | |
Interest-bearing deposits (non-maturity)
|
| | | | — | | | | | | 209,299 | | | | | | — | | | | | | 209,299 | | | | | | 209,299 | | |
Interest-bearing deposits (time deposits)
|
| | | | — | | | | | | — | | | | | | 31,284 | | | | | | 31,284 | | | | | | 31,240 | | |
Debentures payable
|
| | | | — | | | | | | — | | | | | | 3,593 | | | | | | 3,593 | | | | | | 3,593 | | |
Accrued interest payable
|
| | | | — | | | | | | 63 | | | | | | — | | | | | | 63 | | | | | | 63 | | |
| | |
December 31,2020
|
| |||||||||||||||||||||
| | |
Rocky Mountain
Bank |
| |
Teton Financial
Services, Inc. |
| |
Consolidating
Entries |
| |
Consolidated
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
ASSETS
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Cash and due from banks
|
| | | $ | 3,426 | | | | | $ | 395 | | | | | $ | (395) | | | | | $ | 3,426 | | |
Interest-bearing deposits
|
| | | | 109,392 | | | | | | — | | | | | | — | | | | | | 109,392 | | |
Federal funds sold
|
| | | | 456 | | | | | | — | | | | | | — | | | | | | 456 | | |
Cash and cash equivalents
|
| | | | 113,274 | | | | | | 395 | | | | | | (395) | | | | | | 113,274 | | |
Certificates of deposit in banks
|
| | | | 980 | | | | | | — | | | | | | — | | | | | | 980 | | |
Investment securities available for sale
|
| | | | 13,269 | | | | | | — | | | | | | — | | | | | | 13,269 | | |
Nonmarketable equity securities
|
| | | | 1,304 | | | | | | — | | | | | | — | | | | | | 1,304 | | |
Loans held for sale
|
| | | | 11,773 | | | | | | — | | | | | | — | | | | | | 11,773 | | |
Loans
|
| | | | 253,740 | | | | | | — | | | | | | — | | | | | | 253,740 | | |
Less allowance for loan losses
|
| | | | (5,699) | | | | | | — | | | | | | — | | | | | | (5,699) | | |
Net loans
|
| | | | 248,041 | | | | | | — | | | | | | — | | | | | | 248,041 | | |
Premises and equipment, net
|
| | | | 13,802 | | | | | | — | | | | | | — | | | | | | 13,802 | | |
Intangible assets
|
| | | | 2,150 | | | | | | — | | | | | | — | | | | | | 2,150 | | |
Accrued interest receivable
|
| | | | 911 | | | | | | — | | | | | | — | | | | | | 911 | | |
Other assets
|
| | | | 2,048 | | | | | | 13 | | | | | | (13) | | | | | | 2,048 | | |
Investment in Rocky Mountain Bank
|
| | | | — | | | | | | 40,761 | | | | | | (40,761) | | | | | | — | | |
| | | | $ | 407,552 | | | | | $ | 41,169 | | | | | $ | (41,169) | | | | | $ | 407,552 | | |
LIABILITIES
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Deposits | | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing
|
| | | $ | 39,903 | | | | | $ | — | | | | | $ | (395) | | | | | $ | 39,508 | | |
Interest-bearing
|
| | | | 323,679 | | | | | | — | | | | | | — | | | | | | 323,679 | | |
Total deposits
|
| | | | 363,582 | | | | | | — | | | | | | (395) | | | | | | 363,187 | | |
Debentures payable
|
| | | | — | | | | | | 3,593 | | | | | | — | | | | | | 3,593 | | |
Accrued interest payable
|
| | | | 37 | | | | | | — | | | | | | — | | | | | | 37 | | |
Other liabilities
|
| | | | 3,172 | | | | | | — | | | | | | (13) | | | | | | 3,159 | | |
Total liabilities
|
| | | | 366,791 | | | | | | 3,593 | | | | | | (408) | | | | | | 369,976 | | |
STOCKHOLDERS’ EQUITY
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Common stock
|
| | | | 929 | | | | | | 30,250 | | | | | | (929) | | | | | | 30,250 | | |
Capital surplus
|
| | | | 29,991 | | | | | | — | | | | | | (29,991) | | | | | | — | | |
Retained earnings
|
| | | | 9,457 | | | | | | 9,062 | | | | | | (9,457) | | | | | | 9,062 | | |
Note receivable for common stock
|
| | | | — | | | | | | (2,120) | | | | | | — | | | | | | (2,120) | | |
Accumulated other comprehensive income
|
| | | | 384 | | | | | | 384 | | | | | | (384) | | | | | | 384 | | |
Total stockholders’ equity
|
| | | | 40,761 | | | | | | 37,576 | | | | | | (40,761) | | | | | | 37,576 | | |
| | | | $ | 407,552 | | | | | $ | 41,169 | | | | | $ | (41,169) | | | | | $ | 407,552 | | |
| | |
December 31 2019
|
| |||||||||||||||||||||
| | |
Rocky Mountain
Bank |
| |
Teton Financial
Services, Inc. |
| |
Consolidating
Entries |
| |
Consolidated
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
ASSETS
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Cash and due from banks
|
| | | $ | 5,981 | | | | | $ | 356 | | | | | $ | (356) | | | | | $ | 5,981 | | |
Interest-bearing deposits
|
| | | | 33,114 | | | | | | — | | | | | | — | | | | | | 33,114 | | |
Federal funds sold
|
| | | | 724 | | | | | | — | | | | | | — | | | | | | 724 | | |
Cash and cash equivalents
|
| | | | 39,819 | | | | | | 356 | | | | | | (356) | | | | | | 39,819 | | |
Certificates of deposit in banks
|
| | | | 1,220 | | | | | | — | | | | | | — | | | | | | 1,220 | | |
Investment securities available for sale
|
| | | | 14,851 | | | | | | — | | | | | | — | | | | | | 14,851 | | |
Investment securities held to maturity
|
| | | | 2,596 | | | | | | — | | | | | | — | | | | | | 2,596 | | |
Nonmarketable equity securities
|
| | | | 1,307 | | | | | | — | | | | | | — | | | | | | 1,307 | | |
Loans held for sale
|
| | | | 4,219 | | | | | | — | | | | | | — | | | | | | 4,219 | | |
Loans
|
| | | | 235,108 | | | | | | — | | | | | | — | | | | | | 235,108 | | |
Less allowance for loan losses
|
| | | | (2,832) | | | | | | — | | | | | | — | | | | | | (2,832) | | |
Net loans
|
| | | | 232,276 | | | | | | — | | | | | | — | | | | | | 232,276 | | |
Premises and equipment, net
|
| | | | 14,057 | | | | | | — | | | | | | — | | | | | | 14,057 | | |
Real estate held for sale
|
| | | | 306 | | | | | | — | | | | | | — | | | | | | 306 | | |
Intangible assets
|
| | | | 2,182 | | | | | | — | | | | | | — | | | | | | 2,182 | | |
Accrued interest receivable
|
| | | | 855 | | | | | | — | | | | | | — | | | | | | 855 | | |
Other assets
|
| | | | 1,434 | | | | | | 187 | | | | | | (75) | | | | | | 1,546 | | |
Investment in Rocky Mountain Bank
|
| | | | — | | | | | | 39,512 | | | | | | (39,512) | | | | | | — | | |
| | | | $ | 315,122 | | | | | $ | 40,055 | | | | | $ | (39,943) | | | | | $ | 315,234 | | |
LIABILITIES
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Deposits | | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing
|
| | | $ | 33,917 | | | | | $ | — | | | | | $ | (356) | | | | | $ | 33,561 | | |
Interest-bearing
|
| | | | 240,539 | | | | | | — | | | | | | — | | | | | | 240,539 | | |
Total deposits
|
| | | | 274,456 | | | | | | — | | | | | | (356) | | | | | | 274,100 | | |
Debentures payable
|
| | | | — | | | | | | 3,593 | | | | | | — | | | | | | 3,593 | | |
Accrued interest payable
|
| | | | 63 | | | | | | — | | | | | | — | | | | | | 63 | | |
Other liabilities
|
| | | | 1,091 | | | | | | — | | | | | | (75) | | | | | | 1,016 | | |
Total liabilities
|
| | | | 275,610 | | | | | | 3,593 | | | | | | (431) | | | | | | 278,772 | | |
STOCKHOLDERS’ EQUITY
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Common stock
|
| | | | 929 | | | | | | 30,152 | | | | | | (929) | | | | | | 30,152 | | |
Capital surplus
|
| | | | 29,939 | | | | | | — | | | | | | (29,939) | | | | | | — | | |
Retained earnings
|
| | | | 8,424 | | | | | | 8,210 | | | | | | (8,424) | | | | | | 8,210 | | |
Note receivable for common stock
|
| | | | — | | | | | | (2,120) | | | | | | — | | | | | | (2,120) | | |
Accumulated other comprehensive income
|
| | | | 220 | | | | | | 220 | | | | | | (220) | | | | | | 220 | | |
Total stockholders’ equity
|
| | | | 39,512 | | | | | | 36,462 | | | | | | (39,512) | | | | | | 36,462 | | |
| | | | $ | 315,122 | | | | | $ | 40,055 | | | | | $ | (39,943) | | | | | $ | 315,234 | | |
| | |
Year Ended December 31, 2020
|
| |||||||||||||||||||||
| | |
Rocky Mountain
Bank |
| |
Teton Financial
Services, Inc. |
| |
Consolidating
Entries |
| |
Consolidated
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Interest income
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Loans, including fees
|
| | | $ | 12,930 | | | | | $ | — | | | | | $ | — | | | | | $ | 12,930 | | |
Taxable investment securities
|
| | | | 506 | | | | | | — | | | | | | — | | | | | | 506 | | |
Nonmarketable equity securities
|
| | | | 67 | | | | | | — | | | | | | — | | | | | | 67 | | |
Certificates of deposit in banks
|
| | | | 35 | | | | | | — | | | | | | — | | | | | | 35 | | |
Interest-bearing cash and cash equivalents
|
| | | | 208 | | | | | | — | | | | | | — | | | | | | 208 | | |
Total interest income
|
| | | | 13,746 | | | | | | — | | | | | | — | | | | | | 13,746 | | |
Interest expense
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Deposits
|
| | | | 1,690 | | | | | | — | | | | | | — | | | | | | 1,690 | | |
Debentures payable
|
| | | | — | | | | | | 216 | | | | | | — | | | | | | 216 | | |
Total interest expense
|
| | | | 1,690 | | | | | | 216 | | | | | | — | | | | | | 1,906 | | |
Net interest income (loss)
|
| | | | 12,056 | | | | | | (216) | | | | | | — | | | | | | 11,840 | | |
Provision for loan losses
|
| | | | 4,600 | | | | | | — | | | | | | — | | | | | | 4,600 | | |
Net interest income after provision for loan losses
|
| | | | 7,456 | | | | | | (216) | | | | | | — | | | | | | 7,240 | | |
Noninterest income
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Service charges on deposit accounts
|
| | | | 152 | | | | | | — | | | | | | — | | | | | | 152 | | |
Mortgage banking
|
| | | | 1,020 | | | | | | — | | | | | | — | | | | | | 1,020 | | |
Net loss on sale of investment securities
|
| | | | (80) | | | | | | — | | | | | | — | | | | | | (80) | | |
Other noninterest income
|
| | | | 742 | | | | | | — | | | | | | — | | | | | | 742 | | |
| | | | | 1,834 | | | | | | — | | | | | | — | | | | | | 1,834 | | |
Noninterest expense
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits
|
| | | | 4,534 | | | | | | — | | | | | | — | | | | | | 4,534 | | |
Occupancy and equipment
|
| | | | 743 | | | | | | — | | | | | | — | | | | | | 743 | | |
Data processing and software
|
| | | | 1,140 | | | | | | — | | | | | | — | | | | | | 1,140 | | |
Real estate held for sale, net
|
| | | | 181 | | | | | | — | | | | | | — | | | | | | 181 | | |
Amortization of core deposit intangible
|
| | | | 31 | | | | | | — | | | | | | — | | | | | | 31 | | |
Other noninterest expense
|
| | | | 1,338 | | | | | | 1 | | | | | | — | | | | | | 1,339 | | |
| | | | | 7,967 | | | | | | 1 | | | | | | — | | | | | | 7,968 | | |
Income (loss) before income tax expense
|
| | | | 1,323 | | | | | | (217) | | | | | | — | | | | | | 1,106 | | |
Income tax expense (benefit)
|
| | | | 290 | | | | | | (36) | | | | | | — | | | | | | 254 | | |
Income (loss) before equity in income of subsidiary
|
| | | | 1,033 | | | | | | (181) | | | | | | — | | | | | | 852 | | |
Equity in income of subsidiary
|
| | | | — | | | | | | 1,033 | | | | | | (1,033) | | | | | | — | | |
Net income
|
| | | $ | 1,033 | | | | | $ | 852 | | | | | $ | (1,033) | | | | | $ | 852 | | |
| | |
Year Ended December 31, 2019
|
| |||||||||||||||||||||
| | |
Rocky Mountain
Bank |
| |
Teton Financial
Services, Inc. |
| |
Consolidating
Entries |
| |
Consolidated
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Interest income | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans, including fees
|
| | | $ | 13,013 | | | | | $ | — | | | | | $ | — | | | | | $ | 13,013 | | |
Taxable investment securities
|
| | | | 432 | | | | | | — | | | | | | — | | | | | | 432 | | |
Nonmarketable equity securities
|
| | | | 68 | | | | | | — | | | | | | — | | | | | | 68 | | |
Certificates of deposit in banks
|
| | | | 39 | | | | | | — | | | | | | — | | | | | | 39 | | |
Interest-bearing cash and cash equivalents
|
| | | | 1,002 | | | | | | — | | | | | | — | | | | | | 1,002 | | |
Total interest income
|
| | | | 14,554 | | | | | | — | | | | | | — | | | | | | 14,554 | | |
Interest expense | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits
|
| | | | 2,174 | | | | | | — | | | | | | — | | | | | | 2,174 | | |
Debentures payable
|
| | | | — | | | | | | 216 | | | | | | — | | | | | | 216 | | |
Total interest expense
|
| | | | 2,174 | | | | | | 216 | | | | | | — | | | | | | 2,390 | | |
Net interest income (loss)
|
| | | | 12,380 | | | | | | (216) | | | | | | — | | | | | | 12,164 | | |
Provision for loan losses
|
| | | | 2,410 | | | | | | — | | | | | | — | | | | | | 2,410 | | |
Net interest income after provision for loan losses
|
| | | | 9,970 | | | | | | (216) | | | | | | — | | | | | | 9,754 | | |
Noninterest income | | | | | | | | | | | | | | | | | | | | | | | | | |
Service charges on deposit accounts
|
| | | | 171 | | | | | | — | | | | | | — | | | | | | 171 | | |
Mortgage banking
|
| | | | 488 | | | | | | — | | | | | | — | | | | | | 488 | | |
Other noninterest income
|
| | | | 701 | | | | | | — | | | | | | — | | | | | | 701 | | |
| | | | | 1,360 | | | | | | — | | | | | | — | | | | | | 1,360 | | |
Noninterest expense | | | | | | | | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits
|
| | | | 4,089 | | | | | | — | | | | | | — | | | | | | 4,089 | | |
Occupancy and equipment
|
| | | | 712 | | | | | | — | | | | | | — | | | | | | 712 | | |
Data processing and software
|
| | | | 908 | | | | | | — | | | | | | — | | | | | | 908 | | |
Real estate held for sale, net
|
| | | | 78 | | | | | | — | | | | | | — | | | | | | 78 | | |
Amortization of core deposit intangible
|
| | | | 188 | | | | | | — | | | | | | — | | | | | | 188 | | |
Other noninterest expense
|
| | | | 1,316 | | | | | | 61 | | | | | | — | | | | | | 1,377 | | |
| | | | | 7,291 | | | | | | 61 | | | | | | — | | | | | | 7,352 | | |
Income (loss) before income tax expense
|
| | | | 4,039 | | | | | | (277) | | | | | | — | | | | | | 3,762 | | |
Income tax expense (benefit)
|
| | | | 844 | | | | | | (56) | | | | | | — | | | | | | 788 | | |
Income (loss) before equity in income of subsidiary
|
| | | | 3,195 | | | | | | (221) | | | | | | — | | | | | | 2,974 | | |
Equity in income of subsidiary
|
| | | | — | | | | | | 3,195 | | | | | | (3,195) | | | | | | — | | |
Net income
|
| | | $ | 3,195 | | | | | $ | 2,974 | | | | | $ | (3,195) | | | | | $ | 2,974 | | |
| | |
6/30/2021
|
| |
12/31/2020
|
| |
6/30/2020
|
| |||||||||
|
(in thousands)
|
| |||||||||||||||||
ASSETS | | | | | | | | | | | | | | | | | | | |
Cash & Due from Banks & FFS
|
| | | $ | 125,254 | | | | | $ | 114,254 | | | | | $ | 76,941 | | |
Investment Securities
|
| | | | 14,487 | | | | | | 14,573 | | | | | | 16,961 | | |
Gross Loans
|
| | | | 267,874 | | | | | | 265,514 | | | | | | 276,252 | | |
Allowance for Loan Loss
|
| | | | (5,426) | | | | | | (5,699) | | | | | | (4,157) | | |
Net Loans
|
| | | | 262,448 | | | | | | 259,815 | | | | | | 272,095 | | |
Other Assets
|
| | | | 18,345 | | | | | | 18,910 | | | | | | 18,564 | | |
Total Assets
|
| | | $ | 420,534 | | | | | $ | 407,552 | | | | | $ | 384,561 | | |
LIABILITIES & EQUITY | | | | | | | | | | | | | | | | | | | |
Non-interest Bearing Deposits
|
| | | $ | 49,906 | | | | | $ | 39,508 | | | | | $ | 41,662 | | |
Interest Bearing Deposits
|
| | | | 324,544 | | | | | | 323,679 | | | | | | 300,408 | | |
Total Deposits
|
| | | | 374,450 | | | | | | 363,187 | | | | | | 342,070 | | |
Debt
|
| | | | 3,593 | | | | | | 3,593 | | | | | | 3,593 | | |
Other Liabilities
|
| | | | 2,677 | | | | | | 3,197 | | | | | | 1,625 | | |
Total Liabilities
|
| | | | 380,720 | | | | | | 369,977 | | | | | | 347,288 | | |
Common Stock & Surplus
|
| | | | 30,139 | | | | | | 30,139 | | | | | | 30,139 | | |
Retained Earnings
|
| | | | 11,430 | | | | | | 9,062 | | | | | | 8,773 | | |
Accumulated Other Comprehensive Income
|
| | | | 229 | | | | | | 384 | | | | | | 443 | | |
Additional Paid-in Capital
|
| | | | (1,984) | | | | | | (2,010) | | | | | | (2,082) | | |
Total Equity
|
| | | | 39,814 | | | | | | 37,575 | | | | | | 37,273 | | |
Total Liabilities & Equity
|
| | | $ | 420,534 | | | | | $ | 407,552 | | | | | $ | 384,561 | | |
| | |
YTD through
6/30/2021 |
| |
Quarter Ended
6/30/2021 |
| |
YTD through
6/30/2020 |
| |
Quarter Ended
6/30/2020 |
| ||||||||||||
|
(in thousands)
|
| |||||||||||||||||||||||
Interest on Cash & Due from Banks
|
| | | $ | 73 | | | | | $ | 37 | | | | | $ | 172 | | | | | $ | 22 | | |
Interest on Investment Securities
|
| | | | 190 | | | | | | 90 | | | | | | 364 | | | | | | 178 | | |
Interest and Fees on Loans
|
| | | | 6,266 | | | | | | 3,091 | | | | | | 6,465 | | | | | | 3,232 | | |
Total Interest Income
|
| | | | 6,529 | | | | | | 3,218 | | | | | | 7,001 | | | | | | 3,432 | | |
Interest on Deposits
|
| | | | 394 | | | | | | 184 | | | | | | 1,021 | | | | | | 498 | | |
Interest on Debt
|
| | | | 107 | | | | | | 54 | | | | | | 108 | | | | | | 54 | | |
Total Interest Expense
|
| | | | 501 | | | | | | 238 | | | | | | 1,129 | | | | | | 552 | | |
Net Interest Income
|
| | | | 6,028 | | | | | | 2,980 | | | | | | 5,872 | | | | | | 2,880 | | |
Provision for Loan Losses
|
| | | | — | | | | | | — | | | | | | 2,400 | | | | | | 1,400 | | |
Net Interest Income after Provision
|
| | | | 6,028 | | | | | | 2,980 | | | | | | 3,472 | | | | | | 1,480 | | |
Deposit Service Charges
|
| | | | 64 | | | | | | 36 | | | | | | 78 | | | | | | 33 | | |
Other Non-interest Income
|
| | | | 403 | | | | | | 228 | | | | | | 389 | | | | | | 175 | | |
Net Gain/(Loss)
|
| | | | 779 | | | | | | 279 | | | | | | 370 | | | | | | 217 | | |
Total Non-Interest Income
|
| | | | 1,246 | | | | | | 543 | | | | | | 837 | | | | | | 425 | | |
Salaries & Employee Benefits
|
| | | | 2,544 | | | | | | 1,352 | | | | | | 2,029 | | | | | | 764 | | |
Occupancy & Equipment
|
| | | | 385 | | | | | | 216 | | | | | | 373 | | | | | | 185 | | |
Data Processing & Software
|
| | | | 519 | | | | | | 239 | | | | | | 532 | | | | | | 288 | | |
Other Operating Expense
|
| | | | 774 | | | | | | 400 | | | | | | 649 | | | | | | 283 | | |
Total Non-interest Expense
|
| | | | 4,222 | | | | | | 2,207 | | | | | | 3,583 | | | | | | 1,520 | | |
Net Income before Taxes
|
| | | | 3,052 | | | | | | 1,316 | | | | | | 726 | | | | | | 385 | | |
Income Taxes
|
| | | | 684 | | | | | | 282 | | | | | | 163 | | | | | | 86 | | |
Net Income
|
| | | $ | 2,368 | | | | | $ | 1,034 | | | | | $ | 563 | | | | | $ | 299 | | |
| | |
YTD through
6/30/2021 |
| |
YTD through
6/30/2020 |
| ||||||
| | |
(in thousands)
|
| |||||||||
Net Income
|
| | | $ | 2,368 | | | | | $ | 563 | | |
Net Change in Unrealized Gains / (Losses) on AFS Securities
|
| | | | 197 | | | | | | 282 | | |
Tax Effect
|
| | | | (41) | | | | | | (59) | | |
Total Other Comprehensive Income
|
| | | | 156 | | | | | | 223 | | |
Total Comprehensive Income
|
| | | $ | 2,524 | | | | | $ | 786 | | |
| | |
YTD through
6/30/2021 |
| |
YTD through
6/30/2020 |
| ||||||
| | |
(in thousands)
|
| |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | | | | | | | | |
Net income
|
| | | $ | 2,368 | | | | | $ | 563 | | |
Adjustments to reconcile net loss to net cash from operating activities | | | | | | | | | | | | | |
Depreciation and software amortization
|
| | | | 306 | | | | | | 298 | | |
Amortization of core deposit intangible
|
| | | | — | | | | | | 31 | | |
Net amortization on investment securities
|
| | | | 9 | | | | | | 31 | | |
Provision for loan losses
|
| | | | — | | | | | | 2,400 | | |
Deferred income tax expense (benefit)
|
| | | | 267 | | | | | | (286) | | |
Valuation allowances on real estate held for sale
|
| | | | — | | | | | | 106 | | |
Gain on sale of real estate held for sale
|
| | | | (152) | | | | | | — | | |
Stock-based compensation expense
|
| | | | 26 | | | | | | 26 | | |
Net change in loans held for sale
|
| | | | 10,712 | | | | | | 871 | | |
Net change in other assets and liabilities
|
| | | | (373) | | | | | | 816 | | |
Net cash provided by operating activities
|
| | | | 13,162 | | | | | | 4,856 | | |
CASH FLOWS FROM INVESTING ACTIVITIES | | | | | | | | | | | | | |
Purchase of securities available for sale
|
| | | | (10,028) | | | | | | — | | |
Maturities, calls and paydowns of securities available for sale
|
| | | | 10,020 | | | | | | 2,040 | | |
Purchase of nonmarketable equity securities
|
| | | | (112) | | | | | | — | | |
Redemption of nonmarketable equity securities
|
| | | | — | | | | | | 3 | | |
Loan originations and principal collections, net
|
| | | | (13,345) | | | | | | (38,871) | | |
Proceeds from sale of real estate held for sale
|
| | | | 152 | | | | | | — | | |
Acquisition of premises, equipment and software
|
| | | | (112) | | | | | | (96) | | |
Net cash used in investing activities
|
| | | | (13,425) | | | | | | (36,924) | | |
CASH FLOWS FROM FINANCING ACTIVITIES | | | | | | | | | | | | | |
Net change in deposits
|
| | | | 11,263 | | | | | | 67,970 | | |
Net cash provided by (used in) investing activities
|
| | | | 11,263 | | | | | | 67,970 | | |
CHANGE IN CASH AND CASH EQUIVALENTS
|
| | | | 11,000 | | | | | | 35,902 | | |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
| | | | 113,274 | | | | | | 39,819 | | |
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
| | | $ | 124,274 | | | | | $ | 75,721 | | |
SUPPLIMENTAL DISCLOSURES OF CASH FLOW INFORMATION | | | | | | | | | | | | | |
Cash paid during the period for interest
|
| | | $ | 506 | | | | | $ | 1,145 | | |
Cash paid during the period for income taxes
|
| | | | 478 | | | | | | 242 | | |
SUPPLIMENTAL DISCLOSURES OF NON-CASH TRANSACTIONS | | | | | | | | | | | | | |
Loan balances transferred to real estate held for sale
|
| | | $ | — | | | | | $ | — | | |
| | | | | A-1 | | | |
| | | | | A-1 | | | |
| | | | | A-2 | | | |
| | | | | A-2 | | | |
| | | | | A-2 | | | |
| | | | | A-2 | | | |
| | | | | A-2 | | | |
| | | | | A-2 | | | |
| | | | | A-3 | | | |
| | | | | A-3 | | | |
| | | | | A-3 | | | |
| | | | | A-4 | | | |
| | | | | A-4 | | | |
| | | | | A-4 | | | |
| | | | | A-5 | | | |
| | | | | A-5 | | | |
| | | | | A-6 | | | |
| | | | | A-7 | | | |
| | | | | A-7 | | | |
| | | | | A-8 | | | |
| | | | | A-8 | | | |
| | | | | A-9 | | | |
| | | | | A-9 | | | |
| | | | | A-9 | | | |
| | | | | A-10 | | | |
| | | | | A-11 | | | |
| | | | | A-13 | | | |
| | | | | A-14 | | | |
| | | | | A-15 | | | |
| | | | | A-17 | | | |
| | | | | A-17 | | | |
| | | | | A-17 | | | |
| | | | | A-17 | | | |
| | | | | A-18 | | | |
| | | | | A-18 | | | |
| | | | | A-19 | | | |
| | | | | A-20 | | | |
| | | | | A-20 | | | |
| | | | | A-21 | | | |
| | | | | A-21 | | | |
| | | | | A-21 | | | |
| | | | | A-21 | | | |
| | | | | A-21 | | | |
| | | | | A-22 | | |
| | | | | A-23 | | | |
| | | | | A-23 | | | |
| | | | | A-24 | | | |
| | | | | A-24 | | | |
| | | | | A-25 | | | |
| | | | | A-25 | | | |
| | | | | A-25 | | | |
| | | | | A-25 | | | |
| | | | | A-26 | | | |
| | | | | A-26 | | | |
| | | | | A-26 | | | |
| | | | | A-27 | | | |
| | | | | A-27 | | | |
| | | | | A-27 | | | |
| | | | | A-27 | | | |
| | | | | A-27 | | | |
| | | | | A-27 | | | |
| | | | | A-28 | | | |
| | | | | A-28 | | | |
| | | | | A-28 | | | |
| | | | | A-28 | | | |
| | | | | A-28 | | | |
| | | | | A-28 | | | |
| | | | | A-32 | | | |
| | | | | A-32 | | | |
| | | | | A-33 | | | |
| | | | | A-34 | | | |
| | | | | A-35 | | | |
| | | | | A-35 | | | |
| | | | | A-36 | | | |
| | | | | A-36 | | | |
| | | | | A-37 | | | |
| | | | | A-39 | | | |
| | | | | A-39 | | | |
| | | | | A-39 | | | |
| | | | | A-39 | | | |
| | | | | A-39 | | | |
| | | | | A-40 | | | |
| | | | | A-40 | | | |
| | | | | A-40 | | | |
| | | | | A-41 | | | |
| | | | | A-41 | | | |
| | | | | A-41 | | | |
| | | | | A-41 | | |
| | | | | A-41 | | | |
| | | | | A-41 | | | |
| | | | | A-41 | | | |
| | | | | A-42 | | | |
| | | | | A-43 | | | |
| | | | | A-44 | | | |
| | | | | A-44 | | | |
| | | | | A-45 | | | |
| | | | | A-45 | | | |
| | | | | A-46 | | | |
| | | | | A-46 | | | |
| | | | | A-46 | | | |
| | | | | A-46 | | | |
| | | | | A-46 | | | |
| | | | | A-47 | | | |
| | | | | A-47 | | | |
| | | | | A-48 | | | |
| | | | | A-48 | | | |
| | | | | A-48 | | | |
| | | | | A-48 | | | |
| | | | | A-53 | | | |
| | | | | A-54 | | |
| 401(k) Plan | | | 6.21 | |
| Acceptable Confidentiality Agreement | | | 9.8 | |
| Affiliate | | | 9.8 | |
| Affiliate Transactions | | | 3.25 | |
| Aggregate Cash Consideration | | | 9.8 | |
| Aggregate Merger Consideration | | | 9.8 | |
| Aggregate Stock Consideration | | | 9.8 | |
| Agreement | | | Preamble | |
| ALLL | | | 3.24 | |
| Alternative Transaction | | | 8.3(a) | |
| Applicable Requirements | | | 9.8 | |
| Articles of Merger | | | 1.3 | |
| Average Closing Price | | | 9.8 | |
| Balance Sheet Date | | | 9.8 | |
| Bank Merger | | | 1.8 | |
| Bank Merger Certificates | | | 1.8 | |
| Book Entry Shares | | | 2.2(a) | |
| Burdensome Condition | | | 6.1(d) | |
| Business Day | | | 9.8 | |
| Calculation Date | | | 9.8 | |
| Cancelled Shares | | | 1.7(c) | |
| CBCA | | | Recitals | |
| Client | | | 9.8 | |
| Client Contract | | | 9.8 | |
| Closing | | | 1.2 | |
| Closing Date | | | 1.2 | |
| Closing Tangible Book Value | | | 9.8 | |
| Code | | | 2.2(c) | |
| Colorado Courts | | | 9.6(b) | |
| Company | | | Preamble | |
| Company Acquisition Agreement | | | 6.8(e) | |
| Company Adverse Recommendation Change | | | 6.8(e) | |
| Company Articles of Incorporation | | | 3.1(a) | |
| Company Bank | | | 1.8 | |
| Company Benefit Plan | | | 3.11(a) | |
| Company Board Recommendation | | | 3.4(a) | |
| Company Bylaws | | | 3.1(a) | |
| Company Closing Shares | | | 9.8 | |
| Company Common Stock | | | 3.2 | |
| Company Financial Statements | | | 3.6(a) | |
| Company Intellectual Property | | | 3.21(a) | |
| Company Policies | | | 3.19 | |
| Company Regulatory Agreement | | | 3.15 | |
| Company Shareholders Meeting | | | 6.3(b) | |
| Company Subsidiaries | | | 3.1(c) | |
| Company Subsidiary | | | 3.1(c) | |
| Company Takeover Proposal | | | 9.8 | |
| Confidentiality Agreement | | | 9.8 | |
| Corporate Entity | | | 9.8 | |
| Covered Employees | | | 6.5(a) | |
| CRA | | | 3.13(d) | |
| Debentures | | | 3.31 | |
| Derivative Transactions | | | 3.17 | |
| Determination Date | | | 9.8 | |
| Director Support Agreements | | | Recitals | |
| Disclosure Schedule | | | 9.8 | |
| Dissenting Shareholders | | | 1.7(d) | |
| Dissenting Shares | | | 1.7(d) | |
| Effective Time | | | 1.3 | |
| Employment Agreement | | | 6.19 | |
| End Time | | | 9.8 | |
| Environmental Laws | | | 9.8 | |
| ERISA | | | 3.11(a) | |
| ERISA Affiliate | | | 9.8 | |
| Exchange Act | | | 9.8 | |
| Exchange Fund | | | 2.1 | |
| Federal Reserve | | | 3.4 | |
| GAAP | | | 9.8 | |
| Governmental Entity | | | 3.4 | |
| Hazardous Substance | | | 9.8 | |
| Holders | | | 2.2(a) | |
| Insurer | | | 9.8 | |
| Intellectual Property | | | 3.21(a) | |
| Investor | | | 9.8 | |
| IRS | | | 3.10(g) | |
| Knowledge | | | 9.8 | |
| Law/Laws | | | 9.8 | |
| Leased Premises | | | 3.20(a) | |
| Letter of Transmittal | | | 2.2(a) | |
| Lien | | | 3.1(c) | |
| Loan | | | 3.23(b) | |
| Loans | | | 3.23(b) | |
| Locked Pipeline Loans | | | 9.8 | |
| Lock-Up Agreement | | | Recitals | |
| Material Adverse Effect | | | 9.8 | |
| Material Contract | | | 3.14(a) | |
| Maximum Premium | | | 6.7(b) | |
| Merger | | | Recitals | |
| Mortgage | | | 9.8 | |
| Mortgage Loan | | | 9.8 | |
| Mortgage Note | | | 9.8 | |
| Multiemployer Plan | | | 3.11(g) | |
| Multiple Employer Plan | | | 3.11(g) | |
| NASDAQ | | | 9.8 | |
| OREO | | | 3.18(a) | |
| Owned Real Property | | | 3.20(a) | |
| Paid Off Loan | | | 9.8 | |
| Parent | | | Preamble | |
| Parent Bank | | | 1.8 | |
| Parent Common Stock | | | 9.8 | |
| Parent Disclosure Schedule | | | Article IV | |
| Parent Financial Statements | | | 4.6 | |
| Parent Material Adverse Effect | | | 9.8 | |
| Parent Preferred Stock | | | 9.8 | |
| Parent Regulatory Agencies | | | 4.5 | |
| Parent Regulatory Agreement | | | 4.14 | |
| Parent SEC Reports | | | 4.12 | |
| party/parties | | | 9.8 | |
| Paying Agent | | | 2.1 | |
| PBGC | | | 3.11(k) | |
| Per Share Cash Consideration | | | 9.8 | |
| Per Share Merger Consideration | | | 9.8 | |
| Per Share Stock Consideration | | | 9.8 | |
| Permitted Encumbrances | | | 3.20(a) | |
| Person | | | 9.8 | |
| Personal Data | | | 3.13(b) | |
| Pipeline Loans | | | 9.8 | |
| Pre-Closing Disposition | | | 6.15 | |
| Proxy Statement | | | 6.16 | |
| Real Property Landlord Leases | | | 3.20(b) | |
| Recent Company Balance Sheet | | | 3.6(a) | |
| Registration Statement | | | 6.16 | |
| Regulatory Agency | | | 9.8 | |
| Regulatory Approvals | | | 6.1(a) | |
| Remedies Exceptions | | | 3.4(a) | |
| Reports | | | 3.5 | |
| Representatives | | | 6.8(a) | |
| Requisite Shareholder Approval | | | 3.4(a) | |
| Retention Agreement | | | 6.19 | |
| SEC | | | 9.8 | |
| Securities Act | | | 9.8 | |
| Security Breach | | | 3.13(b) | |
| Sold Mortgage Loans | | | 9.8 | |
| Specialty Lending Loan | | | 9.8 | |
| Statement of Merger | | | 1.3 | |
| Subsidiary | | | 9.8 | |
| Superior Proposal | | | 9.8 | |
| Surviving Corporation | | | Recitals | |
| Tail Policy | | | 6.7(b) | |
| Takeover Statutes | | | 3.26 | |
| Tax | | | 9.8 | |
| Tax Return | | | 9.8 | |
| Taxes | | | 9.8 | |
| Termination Fee | | | 8.3(a) | |
| Title Commitment | | | 6.14 | |
| Title Commitments | | | 6.14 | |
| Title Company | | | 6.14 | |
| Title Policies | | | 6.14 | |
| Title Policy | | | 6.14 | |
| Trading Day | | | 9.8 | |
| Transaction Expenses | | | 9.8 | |
| Treasury Regulations | | | 9.8 | |
| Trust Business | | | 3.32(b) | |
| Unaudited Monthly Financial Statement | | | 6.2(c) | |
| Unlocked Pipeline Loans | | | 9.8 | |
| Voting and Support Agreement | | | Recitals | |
| VWAP | | | 9.8 | |
| WBCA | | | Recitals | |
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1251 AVENUE OF THE AMERICAS, 6TH FLOOR
NEW YORK, NY 10020 P 212 466-7800 | TF 800 635-6851 Piper Sandler & Co. Since 1895. Member SIPC and NYSE. |
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Exhibit Index
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2.1 | | | Agreement and Plan of Merger dated July 22, 2021 (included as Appendix A to the proxy statement/prospectus contained in this Registration Statement) | |
3.1 | | | Amended and Restated Articles of Incorporation of First Western Financial, Inc. (incorporated by reference to Exhibit 3.1 to First Western’s Form S-1 (File No. 333-225719) filed with the SEC on July 3, 2018) | |
3.2 | | | | |
4.1 | | | Reference is made to Exhibits 3.1 and 3.2 hereof | |
5.1 | | | | |
8.1 | | | Opinion of Otteson Shapiro LLP regarding certain tax matters** | |
8.2 | | | Opinion of Greenberg Traurig, LLP regarding certain tax matters** | |
10.1 | | | Form of Voting and Support Agreement* | |
23.1 | | | | |
23.2 | | | | |
23.3 | | | | |
23.4 | | | Consent of Otteson Shapiro LLP (included in Exhibit 8.1)** | |
23.5 | | | Consent of Greenberg Traurig, LLP (included in Exhibit 8.2)** | |
24 | | | | |
99.1 | | | | |
99.2 | | | Form of Proxy Card to be used by Teton** | |
| | | | FIRST WESTERN FINANCIAL, INC. | | |||
| | | | By: | | |
/s/ Scott C. Wylie
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Name:
Scott C. Wylie
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Title:
Chairman, Chief Executive Officer and President
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Signature
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Title
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Date
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/s/ Scott C. Wylie
Scott C. Wylie
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| | Chairman, Chief Executive Officer and President | | |
October 5, 2021
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/s/ Julie A. Courkamp
Julie A. Courkamp
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| | Director, Chief Financial Officer and Treasurer | | |
October 5, 2021
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/s/ Julie A. Caponi
Julie A. Caponi
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| | Director | | |
October 5, 2021
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/s/ David R. Duncan
David R. Duncan
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| | Director | | |
October 5, 2021
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/s/ Thomas A. Gart
Thomas A. Gart
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| | Director | | |
October 5, 2021
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/s/ Patrick H. Hamill
Patrick H. Hamill
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| | Director | | |
October 5, 2021
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/s/ Scott C. Mitchell
Scott C. Mitchell
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| | Director | | |
October 5, 2021
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Signature
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Title
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Date
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/s/ Luke A. Latimer
Luke A. Latimer
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| | Director | | |
October 5, 2021
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/s/ Eric D. Sipf
Eric D. Sipf
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| | Director | | |
October 5, 2021
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/s/ Mark L. Smith
Mark L. Smith
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| | Director | | |
October 5, 2021
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/s/ Joseph C. Zimlich
Joseph C. Zimlich
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| | Director | | |
October 5, 2021
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