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Investar (ISTR) - 2022 Q2 - Quarterly Report
2022-08-05 19:49
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 _____________________________________ FORM 10-Q _____________________________________ (Mark One) ☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36522 Investar Holding Corporation (Exact name of regis ...
Investar (ISTR) - 2022 Q1 - Quarterly Report
2022-05-04 19:13
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 _____________________________________ FORM 10-Q _____________________________________ (Mark One) ☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 or ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36522 Investar Holding Corporation (Exact name of regi ...
Investar (ISTR) - 2021 Q4 - Annual Report
2022-03-09 21:31
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________ FORM 10-K _____________________________________ (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36522 Investar Holding Corporation (Ex ...
Investar (ISTR) - 2021 Q3 - Quarterly Report
2021-11-03 20:27
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 _____________________________________ FORM 10-Q _____________________________________ (Mark One) ☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 or ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36522 Investar Holding Corporation (Exact name of ...
Investar (ISTR) - 2021 Q2 - Quarterly Report
2021-08-06 20:54
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 _____________________________________ FORM 10-Q _____________________________________ (Mark One) ☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 or ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36522 Investar Holding Corporation (Exact name of regis ...
Investar (ISTR) - 2021 Q1 - Quarterly Report
2021-05-06 20:33
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 _____________________________________ FORM 10-Q _____________________________________ (Mark One) ☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 or ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36522 Investar Holding Corporation (Exact name of regi ...
Investar (ISTR) - 2020 Q4 - Annual Report
2021-03-10 19:26
UNITED STATES SECURITIES AND EXCHANGE COMMISSION þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Washington, D.C. 20549 _____________________________________ Commission File Number: 001-36522 ____________________________________________________ FORM 10-K _____________________________________ Investar Holding Corporation (Mark One) (E ...
Investar (ISTR) - 2020 Q3 - Quarterly Report
2020-11-05 19:21
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 _____________________________________ FORM 10-Q _____________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36522 Investar Holding Corporation (Exact name o ...
Investar (ISTR) - 2020 Q2 - Quarterly Report
2020-08-06 20:44
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 _____________________________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36522 Investar Holding Corporation (Exact name of registrant as specified in its charter) ( ...
Investar (ISTR) - 2020 Q1 - Quarterly Report
2020-05-08 21:01
Part I. Financial Information [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The unaudited consolidated financial statements for the three months ended March 31, 2020, show a significant decrease in net income to $0.6 million from $3.9 million in the prior-year period, primarily due to a large provision for loan losses related to the COVID-19 pandemic. Total assets grew to $2.20 billion from $2.15 billion at year-end 2019, driven by loan growth partially from the acquisition of two PlainsCapital Bank branches. Stockholders' equity decreased slightly to $233.3 million Consolidated Balance Sheet Highlights (Unaudited) | Account | March 31, 2020 ($ thousands) | December 31, 2019 ($ thousands) | | :--- | :--- | :--- | | **Total Assets** | **$2,199,369** | **$2,148,916** | | Loans, net | $1,715,561 | $1,681,275 | | Total Deposits | $1,728,826 | $1,707,706 | | **Total Liabilities** | **$1,966,097** | **$1,906,940** | | **Total Stockholders' Equity** | **$233,272** | **$241,976** | Consolidated Income Statement Highlights (Unaudited) | Account | Three months ended March 31, 2020 ($ thousands) | Three months ended March 31, 2019 ($ thousands) | | :--- | :--- | :--- | | Net Interest Income | $17,335 | $15,156 | | Provision for loan losses | $3,760 | $265 | | **Net Income** | **$608** | **$3,917** | | **Diluted EPS** | **$0.05** | **$0.40** | Consolidated Cash Flow Highlights (Unaudited) | Account | Three months ended March 31, 2020 ($ thousands) | Three months ended March 31, 2019 ($ thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $783 | $5,866 | | Net cash (used in) provided by investing activities | $(20,654) | $15,679 | | Net cash provided by financing activities | $13,718 | $33,718 | | **Net change in cash and cash equivalents** | **$(6,153)** | **$55,263** | [Note 1. Summary of Significant Accounting Policies](index=12&type=section&id=Note%201.%20Summary%20of%20Significant%20Accounting%20Policies) The financial statements are prepared under U.S. GAAP for interim reporting. The company highlights that the COVID-19 pandemic has made certain material estimates, particularly the allowance for loan losses, more challenging. It adopted new accounting standards for fair value measurement disclosures and goodwill impairment testing in 2020. The company is also applying relief provisions from the CARES Act and interagency guidance for loan modifications related to COVID-19, which allows such modifications not to be classified as Troubled Debt Restructurings (TDRs) - The COVID-19 pandemic has made material estimates, such as the allowance for loan losses, fair value of financial instruments, and goodwill, more challenging and susceptible to significant change[30](index=30&type=chunk)[32](index=32&type=chunk) - The company is offering short-term loan modifications (e.g., 90-day deferrals) to borrowers affected by COVID-19. In line with the CARES Act and regulatory guidance, these modifications are not accounted for as Troubled Debt Restructurings (TDRs)[59](index=59&type=chunk)[60](index=60&type=chunk)[61](index=61&type=chunk) - As of May 4, 2020, approximately **$531 million**, or **30% of the total loan portfolio**, was in the loan deferral program. **87% of these loans** are secured by real estate[61](index=61&type=chunk) - The company performed an interim goodwill impairment test as of March 31, 2020, due to a significant decline in its market capitalization and concluded that **goodwill was not impaired**[57](index=57&type=chunk) [Note 2. Business Combinations](index=18&type=section&id=Note%202.%20Business%20Combinations) The company completed the acquisition of two branch locations from PlainsCapital Bank on February 21, 2020, for approximately $11.1 million in cash. This transaction added $45.3 million in loans and $37.0 million in deposits, resulting in $0.5 million of goodwill. The note also provides final details on the 2019 acquisitions of Mainland Bank and Bank of York PlainsCapital Branch Acquisition (Feb 21, 2020) | Item | Amount ($ thousands) | | :--- | :--- | | Purchase Price (Cash) | $11,114 | | Fair Value of Loans Acquired | $45,287 | | Fair Value of Deposits Assumed | $36,973 | | Goodwill Recorded | $464 | - Acquisition-related costs of $0.8 million were recorded in Q1 2020, primarily related to the PlainsCapital branch acquisition[83](index=83&type=chunk) [Note 4. Investment Securities](index=21&type=section&id=Note%204.%20Investment%20Securities) The company's investment securities portfolio totaled $290.5 million at fair value as of March 31, 2020, up from $274.2 million at year-end 2019. The portfolio is primarily composed of residential and commercial mortgage-backed securities. Gross unrealized losses on available-for-sale (AFS) securities increased significantly to $3.0 million from $0.8 million at year-end, largely attributed to market volatility from the COVID-19 pandemic. Management considers these impairments temporary Investment Securities Portfolio (Amortized Cost) | Security Type | March 31, 2020 ($ thousands) | December 31, 2019 ($ thousands) | | :--- | :--- | :--- | | Available for Sale (AFS) | $274,041 | $258,104 | | Held to Maturity (HTM) | $14,253 | $14,409 | | **Total** | **$288,294** | **$272,513** | - Gross unrealized losses on AFS securities increased from **$0.8 million** at Dec 31, 2019 to **$3.0 million** at March 31, 2020. This change is largely attributed to the market impact of the COVID-19 pandemic[91](index=91&type=chunk)[94](index=94&type=chunk)[97](index=97&type=chunk) - The company does not consider any securities to be other-than-temporarily impaired, as it has the intent and ability to hold them until maturity or a forecasted recovery[94](index=94&type=chunk)[98](index=98&type=chunk) [Note 5. Loans & Allowance for Loan Losses](index=24&type=section&id=Note%205.%20Loans%20%26%20Allowance%20for%20Loan%20Losses) Total loans increased to $1.73 billion at March 31, 2020, from $1.69 billion at year-end 2019. The allowance for loan losses (ALL) increased significantly to $14.2 million from $10.7 million, driven by a $3.8 million provision for loan losses in Q1 2020. This provision reflects the deteriorating economic outlook due to the COVID-19 pandemic. Nonperforming loans rose to $7.6 million (0.44% of total loans) from $6.3 million at year-end. The ALL as a percentage of total loans increased to 0.82% Allowance for Loan Losses Activity (Q1 2020) | Item | Amount ($ thousands) | | :--- | :--- | | Balance, beginning of period | $10,700 | | **Provision for loan losses** | **$3,760** | | Loans charged off | $(262) | | Recoveries | $35 | | **Balance, end of period** | **$14,233** | Loan Portfolio Composition | Loan Category | March 31, 2020 ($ thousands) | % of Total | | :--- | :--- | :--- | | Commercial real estate | $776,354 | 44.9% | | Commercial and industrial | $313,850 | 18.1% | | 1-4 Family | $328,730 | 19.0% | | Construction and development | $191,597 | 11.1% | | Other | $119,263 | 6.9% | | **Total Loans** | **$1,729,794** | **100.0%** | - Nonaccrual loans increased to **$4.4 million** at March 31, 2020, from **$3.0 million** at December 31, 2019[108](index=108&type=chunk)[111](index=111&type=chunk) - Impaired loans, including TDRs and nonaccrual loans, increased to **$3.6 million** at March 31, 2020, from **$2.5 million** at December 31, 2019[142](index=142&type=chunk)[144](index=144&type=chunk)[146](index=146&type=chunk) [Note 7. Stock-Based Compensation](index=35&type=section&id=Note%207.%20Stock-Based%20Compensation) The company maintains the 2017 Long-Term Incentive Compensation Plan for granting equity awards. For the three months ended March 31, 2020, total stock-based compensation expense was approximately $0.37 million ($73,000 for stock options and $0.3 million for restricted stock/units). As of March 31, 2020, there was $5.3 million of unrecognized compensation cost expected to be recognized over a weighted-average period of approximately 3.7-3.8 years Stock-Based Compensation Expense (Q1) | Award Type | 2020 ($ thousands) | 2019 ($ thousands) | | :--- | :--- | :--- | | Stock Options | $73 | $68 | | Restricted Stock & RSUs | $300 | $200 | - As of March 31, 2020, **243,937 shares** were available for future grants under the 2017 Long-Term Incentive Compensation Plan[156](index=156&type=chunk) [Note 8. Derivative Financial Instruments](index=37&type=section&id=Note%208.%20Derivative%20Financial%20Instruments) The company uses pay-fixed interest rate swaps designated as cash flow hedges to manage interest rate risk on its borrowings. As of March 31, 2020, these swaps had a total notional amount of $105.0 million ($70.0 million active and $35.0 million forward-starting). Due to falling interest rates, the company recognized a $2.5 million loss in other comprehensive income for the change in fair value of these swaps during Q1 2020. The company also enters into back-to-back swaps with commercial customers, which have no material impact on earnings - The company had interest rate swaps with a total notional amount of **$105.0 million** designated as cash flow hedges as of March 31, 2020[167](index=167&type=chunk) - A loss of **$2.5 million** was recognized in Other Comprehensive Income for the change in fair value of interest rate swaps in Q1 2020, compared to a loss of **$0.2 million** in Q1 2019[168](index=168&type=chunk) [Note 9. Fair Values of Financial Instruments](index=38&type=section&id=Note%209.%20Fair%20Values%20of%20Financial%20Instruments) This note details the fair value hierarchy (Levels 1, 2, and 3) for financial instruments. As of March 31, 2020, the majority of assets measured at fair value on a recurring basis, such as investment securities, were classified as Level 2. Level 3 assets, which use significant unobservable inputs, consisted of $16.9 million in obligations of state and political subdivisions. The fair value of these Level 3 assets decreased from $19.4 million at year-end 2019 due to unrealized losses Assets Measured at Fair Value on a Recurring Basis (March 31, 2020) | Level | Amount ($ thousands) | Primary Components | | :--- | :--- | :--- | | Level 1 | $1,270 | Equity securities | | Level 2 | $259,408 | Most investment securities | | Level 3 | $16,873 | Obligations of state and political subdivisions | - The balance of Level 3 assets measured on a recurring basis decreased from **$19.4 million** to **$16.9 million** during Q1 2020, primarily due to **$2.5 million** in unrealized losses included in other comprehensive income[189](index=189&type=chunk)[190](index=190&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=45&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the significant negative impact of the COVID-19 pandemic on Q1 2020 results, leading to a net income of only $0.6 million compared to $3.9 million in Q1 2019. This was driven by a $3.8 million provision for loan losses and a $0.8 million loss on equity securities. The company completed the acquisition of two PlainsCapital Bank branches, adding $45.3 million in loans and $37.0 million in deposits. The company is actively managing risks through loan deferral programs and participation in the PPP. Net interest income grew 14.4% due to asset growth from acquisitions, but the net interest margin compressed by 7 basis points to 3.46% [Recent Developments Related to COVID-19](index=46&type=section&id=Recent%20Developments%20Related%20to%20COVID-19) The COVID-19 pandemic and related government responses significantly impacted the economic environment in Q1 2020. The company has responded by participating in the Paycheck Protection Program (PPP), offering loan modifications under the CARES Act, and adjusting its operations by closing branch lobbies and enabling remote work. The financial impact in Q1 was a decreased net income, primarily due to a $3.8 million provision for loan losses and a $0.8 million unrealized loss on equity securities - The company is an active lender in the Small Business Administration's (SBA) Paycheck Protection Program (PPP), having funded approximately **$75 million** in loans to over **300 customers** through May 4, 2020[220](index=220&type=chunk) - The company is offering short-term loan modifications (90 days or less) to borrowers affected by COVID-19, which are not being classified as Troubled Debt Restructurings (TDRs) per CARES Act and regulatory guidance[221](index=221&type=chunk)[222](index=222&type=chunk)[223](index=223&type=chunk) - Operational changes in response to the pandemic include closing branch lobbies to the public (except by appointment), servicing customers through drive-thrus and digital channels, and expanding remote work capabilities for employees[224](index=224&type=chunk) [Discussion and Analysis of Financial Condition](index=49&type=section&id=Discussion%20and%20Analysis%20of%20Financial%20Condition) As of March 31, 2020, total assets were $2.2 billion. Total loans grew by $37.8 million (2.2%) during the quarter to $1.73 billion, including $44.5 million from the PlainsCapital branch acquisition. Total deposits increased by $21.1 million (1.2%) to $1.73 billion, including $37.0 million from the acquisition. The company increased its borrowings from the FHLB by $36.1 million to $167.7 million to manage liquidity Loan Portfolio Composition | Loan Category | March 31, 2020 ($ thousands) | % of Total | | :--- | :--- | :--- | | Total mortgage loans on real estate | $1,387,763 | 80.3% | | Commercial and industrial | $313,850 | 18.1% | | Consumer | $28,181 | 1.6% | | **Total loans** | **$1,729,794** | **100.0%** | - Approximately **6.0%** of the total loan portfolio at March 31, 2020, was concentrated in industries potentially more affected by the pandemic, including oil and gas (**3.2%**), food services (**1.8%**), hospitality (**0.4%**), and entertainment (**0.6%**)[243](index=243&type=chunk) Deposit Composition | Deposit Category | March 31, 2020 ($ thousands) | % of Total | | :--- | :--- | :--- | | Noninterest-bearing demand | $339,379 | 19.6% | | Interest-bearing demand | $378,787 | 21.9% | | Money market & Savings | $315,896 | 18.3% | | Time deposits | $694,764 | 40.2% | | **Total deposits** | **$1,728,826** | **100.0%** | [Results of Operations](index=53&type=section&id=Results%20of%20Operations) Net income for Q1 2020 was $0.6 million, a sharp decline from $3.9 million in Q1 2019. The decrease was primarily caused by a $3.8 million provision for loan losses and a $0.8 million loss on the fair value of equity securities, both related to the economic impact of COVID-19. Net interest income increased 14.4% to $17.3 million due to loan growth, but the net interest margin declined 7 basis points to 3.46%. Noninterest income fell 15.0% to $1.1 million, while noninterest expense rose 23.0% to $13.9 million, driven by growth and acquisition-related costs Key Performance Ratios (Q1) | Metric | 2020 | 2019 | | :--- | :--- | :--- | | Net Interest Margin | 3.46% | 3.53% | | Return on Average Assets | 0.11% | 0.86% | | Return on Average Equity | 1.00% | 8.37% | - Net interest income increased by **$2.2 million** year-over-year, driven by a $263.2 million increase in average loans. However, the net interest margin decreased by **7 basis points** due to a higher cost of funds relative to asset yields[263](index=263&type=chunk)[266](index=266&type=chunk) - Noninterest income decreased by **$0.2 million**, mainly due to a **$0.8 million** loss on the fair value of equity securities, which was a direct result of market volatility from the pandemic[273](index=273&type=chunk)[274](index=274&type=chunk) - Noninterest expense increased by **$2.6 million**, primarily due to a **$1.5 million** increase in salaries and benefits from a larger employee base following acquisitions and organic growth[275](index=275&type=chunk) [Risk Management](index=57&type=section&id=Risk%20Management) The company's primary risks are credit, interest rate, and liquidity. Credit risk management was highlighted by a significant increase in the allowance for loan losses to $14.2 million (0.82% of total loans) due to the COVID-19 pandemic. Nonperforming loans increased to $7.6 million. Interest rate risk is managed by the Asset Liability Committee (ALCO), with simulations showing that a 100 basis point increase in rates would decrease net interest income by an estimated 0.8%, well within policy limits Allowance for Loan Losses (ALL) Analysis | Metric | March 31, 2020 | December 31, 2019 | | :--- | :--- | :--- | | ALL Balance | $14,233 thousand | $10,700 thousand | | ALL to Total Loans | 0.82% | 0.63% (calculated) | | ALL to Nonperforming Loans | 188.35% | 170.2% (calculated) | - The provision for loan losses was **$3.8 million** in Q1 2020, compared to only **$0.3 million** in Q1 2019, primarily due to the deterioration of market conditions from the COVID-19 pandemic[285](index=285&type=chunk) Interest Rate Sensitivity Analysis (as of March 31, 2020) | Rate Shock (basis points) | Estimated Impact on Net Interest Income | | :--- | :--- | | +200 | (1.6)% | | +100 | (0.8)% | | -100 | 0.5% | [Liquidity and Capital Resources](index=63&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position, with core deposits funding 68% of total assets. Additional liquidity sources include the investment portfolio, FHLB advances (with $595.0 million available), and unsecured lines of credit ($60.0 million available). The company and the Bank were both in compliance with all regulatory capital requirements and the Bank was considered "well-capitalized" as of March 31, 2020. The company repurchased 326,636 shares for $6.6 million during the quarter - The company has significant available liquidity, including **$595.0 million** in remaining credit from the FHLB and **$60.0 million** in unsecured lines of credit with other banks[315](index=315&type=chunk)[317](index=317&type=chunk) Regulatory Capital Ratios (Company) | Ratio | March 31, 2020 | Minimum Requirement | | :--- | :--- | :--- | | Tier 1 Leverage | 9.82% | 4.00% | | Common Equity Tier 1 | 10.95% | 4.50% | | Tier 1 Capital | 11.30% | 6.00% | | Total Capital | 14.39% | 8.00% | - During Q1 2020, the company repurchased **326,636 shares** of its common stock for **$6.6 million**[323](index=323&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=67&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section refers to the market risk disclosures in the company's 2019 Form 10-K and the "Risk Management" section within Item 2 of this report. It states that there have been no material changes in the company's market risk since December 31, 2019, other than those discussed in the MD&A - There have been no material changes in the Company's market risk since December 31, 2019, except as discussed in the MD&A section of this report[338](index=338&type=chunk) [Controls and Procedures](index=67&type=section&id=Item%204.%20Controls%20and%20Procedures) The Principal Executive Officer and Principal Financial Officer concluded that the company's disclosure controls and procedures were effective as of the end of the period. There were no material changes to the company's internal control over financial reporting during the quarter - Management concluded that disclosure controls and procedures are effective as of March 31, 2020[339](index=339&type=chunk) - No material changes were made to internal control over financial reporting during the first quarter of 2020[340](index=340&type=chunk) Part II. Other Information [Risk Factors](index=68&type=section&id=Item%201A.%20Risk%20Factors) The company has added a significant risk factor related to the COVID-19 pandemic. It highlights the high uncertainty and potential for adverse impacts on business, financial results, and operations. Specific risks include higher loan defaults, increased allowance for loan losses, reduced demand for services, lower interest income, potential goodwill impairment, and increased operational and litigation risks, including those related to the PPP loan program - A new, significant risk factor has been added detailing the adverse impacts of the COVID-19 pandemic, which has created worldwide economic uncertainty and disruption[343](index=343&type=chunk) - Specific financial risks from the pandemic include higher loan defaults, further increases in the allowance for loan losses, declines in collateral values, lower interest income from reduced market rates, and potential impairment of goodwill[345](index=345&type=chunk)[346](index=346&type=chunk) - Operational and legal risks include increased litigation risk from the PPP loan process, instability in the deposit base, and heightened cybersecurity threats[353](index=353&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=69&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no unregistered sales of equity securities during the quarter. Under its publicly announced share repurchase plan, the company repurchased a total of 326,636 shares at an average price of approximately $20.39 per share during the three months ended March 31, 2020. On March 10, 2020, the board authorized the repurchase of an additional 300,000 shares Issuer Purchases of Equity Securities (Q1 2020) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | January 2020 | 8,503 | $22.86 | | February 2020 | 29,033 | $22.45 | | March 2026 | 302,640 | $20.12 | | **Total** | **340,176** | **$20.39** | - On March 10, 2020, the board authorized an additional **300,000 shares** for repurchase under its stock repurchase plan. As of March 31, 2020, **299,698 shares** remained authorized for repurchase[353](index=353&type=chunk) [Exhibits](index=71&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including various agreements, articles of incorporation, bylaws, and certifications by the Principal Executive Officer and Principal Financial Officer as required by the Sarbanes-Oxley Act of 2002 - The exhibits include certifications from the CEO and CFO pursuant to Sections **302** and **906** of the Sarbanes-Oxley Act, as well as XBRL data files[357](index=357&type=chunk) Signatures