Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 22, 2018 | Jun. 30, 2017 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | BAYK | ||
Entity Registrant Name | BAY BANKS OF VIRGINIA INC | ||
Entity Central Index Key | 1,034,594 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 13,223,096 | ||
Entity Public Float | $ 73,831,091 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
ASSETS | |||
Cash and due from banks | $ 9,396 | $ 4,851 | |
Interest-bearing deposits | 41,971 | 7,501 | |
Certificates of deposit | 3,224 | 4,216 | |
Federal funds sold | 6,961 | 2,350 | |
Securities available-for-sale, at fair value | 77,153 | 51,173 | |
Restricted securities | 5,787 | 2,649 | |
Loans receivable, net of allowance for loan losses of $7,770 and $3,863 | 758,726 | 381,537 | |
Loans held for sale | 1,651 | 276 | |
Premises and equipment, net | 17,866 | 10,844 | |
Accrued interest receivable | 3,194 | 1,372 | |
Other real estate owned, net | 4,284 | 2,494 | |
Bank owned life insurance | 18,773 | 9,869 | |
Goodwill | 10,374 | 2,808 | |
Mortgage servicing rights | 999 | 671 | |
Intangible | 3,990 | ||
Other assets | 7,206 | 4,099 | |
Total assets | 970,556 | 486,710 | |
LIABILITIES | |||
Noninterest-bearing deposits | 103,037 | 74,799 | |
Savings and interest-bearing demand deposits | 299,820 | 178,869 | |
Time deposits | 358,989 | 128,050 | |
Total deposits | 761,846 | 381,718 | |
Securities sold under repurchase agreements | 9,498 | 18,310 | |
Federal Home Loan Bank advances | 70,000 | 35,000 | |
Subordinated debt, net of issuance costs | 6,877 | 6,860 | |
Other liabilities | 7,781 | 3,117 | |
Total liabilities | 856,002 | 445,005 | |
SHAREHOLDERS' EQUITY | |||
Common stock ($5 par value; authorized - 30,000,000 shares; outstanding - 13,203,605 and 4,774,856 shares, respectively) | [1],[2] | 66,018 | 23,874 |
Additional paid-in capital | 37,142 | 2,872 | |
Unearned employee stock ownership plan shares | (1,129) | ||
Retained earnings | 13,679 | 16,194 | |
Accumulated other comprehensive loss, net | (1,156) | (1,235) | |
Total shareholders' equity | 114,554 | 41,705 | |
Total liabilities and shareholders' equity | 970,556 | $ 486,710 | |
Core Deposits | |||
ASSETS | |||
Intangible | $ 2,991 | ||
[1] | On March 15, 2017, the Company's shareholders voted to increase the authorized shares. Refer to Note 26. | ||
[2] | The Company has preferred stock authorized, however none is outstanding. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Loans, allowance for loan losses | $ 7,770 | $ 3,863 |
Common stock, par value | $ 5 | $ 5 |
Common stock, authorized shares | 30,000,000 | 30,000,000 |
Common stock, outstanding shares | 13,203,605 | 4,774,856 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
INTEREST INCOME | ||
Loans, including fees | $ 31,330 | $ 16,388 |
Securities: | ||
Taxable | 1,399 | 904 |
Tax-exempt | 423 | 496 |
Federal funds sold | 164 | 4 |
Interest-bearing deposit accounts | 310 | 61 |
Certificates of deposit | 74 | 83 |
Total interest income | 33,700 | 17,936 |
INTEREST EXPENSE | ||
Deposits | 4,513 | 2,562 |
Federal funds purchased | 11 | 2 |
Securities sold under repurchase agreements | 15 | 15 |
Subordinated debt | 482 | 472 |
FHLB advances | 980 | 474 |
Total interest expense | 6,001 | 3,525 |
Net interest income | 27,699 | 14,411 |
Provision for loan losses | 4,934 | 287 |
Net interest income after provision for loan losses | 22,765 | 14,124 |
NON-INTEREST INCOME | ||
Income from fiduciary activities | 904 | 967 |
Service charges and fees on deposit accounts | 900 | 890 |
VISA-related fees | 68 | 168 |
Non-deposit product income | 370 | 357 |
Other service charges and fees | 705 | 611 |
Secondary market lending fees | 469 | 765 |
Increase in cash surrender value of life insurance | 473 | 274 |
Net gains on sale of securities available for sale | 2 | 435 |
Other real estate losses | (221) | (127) |
Net losses on the disposal of fixed assets | (220) | |
Other income | 234 | 270 |
Total non-interest income | 3,684 | 4,610 |
NON-INTEREST EXPENSES | ||
Salaries and employee benefits | 13,223 | 7,799 |
Occupancy expense | 2,735 | 1,793 |
Data processing | 1,258 | 671 |
Bank franchise tax | 533 | 295 |
VISA expense | 35 | 100 |
Telecommunications expense | 308 | 125 |
FDIC assessments | 580 | 366 |
Foreclosure property expense | 147 | 93 |
Consulting expense | 665 | 282 |
Advertising and marketing | 664 | 197 |
Directors' fees | 624 | 337 |
Audit and accounting fees | 746 | 322 |
Merger related expenses | 1,976 | 575 |
Intangible amortization | 679 | |
Other expense | 2,751 | 2,278 |
Total non-interest expenses | 26,924 | 15,233 |
(Loss) income before income taxes | (475) | 3,501 |
Income tax expense | 797 | 966 |
Net (loss) income | $ (1,272) | $ 2,535 |
Basic Earnings Per Share | ||
Average basic shares outstanding | 9,399,223 | 4,774,856 |
(Loss) earnings per share, basic | $ (0.14) | $ 0.53 |
Diluted Earnings Per Share | ||
Average diluted shares outstanding | 9,399,223 | 4,799,946 |
(Loss) earnings per share, diluted | $ (0.14) | $ 0.53 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Net (loss) income | $ (1,272) | $ 2,535 |
Unrealized gains (losses) on securities: | ||
Net unrealized holding gains (losses) arising during the period | 144 | (515) |
Deferred tax benefit (expense) | (30) | 175 |
Reclassification of net securities gains | (2) | (435) |
Deferred tax expense (benefit) | 148 | |
Unrealized (losses) gains adjustment, net of tax | 112 | (627) |
Defined benefit plan: | ||
Total other comprehensive (loss) income | 267 | (459) |
Comprehensive (loss) income | (1,005) | 2,076 |
Pension Plan, Defined Benefit | ||
Defined benefit plan: | ||
Net pension/post retirement gain | 49 | 8 |
Deferred tax (expense) benefit | (17) | (3) |
Reclassification expense | 81 | 78 |
Deferred tax benefit | (28) | (26) |
Defined benefit pension plan/ post retirement plan adjustment, net of tax | 85 | 57 |
Other Postretirement Benefit Plan, Defined Benefit | ||
Defined benefit plan: | ||
Net pension/post retirement gain | 109 | 169 |
Deferred tax (expense) benefit | (39) | (58) |
Defined benefit pension plan/ post retirement plan adjustment, net of tax | $ 70 | $ 111 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Unearned Employee Stock Ownership Plan Shares | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance at beginning of period at Dec. 31, 2015 | $ 39,569 | $ 23,874 | $ 2,812 | $ 13,659 | $ (776) | |
Balance at beginning of period, Shares at Dec. 31, 2015 | 4,774,856 | |||||
Net (loss) income | 2,535 | 2,535 | ||||
Other comprehensive (loss) income | $ (459) | (459) | ||||
Stock options exercised, Shares | 0 | |||||
Stock compensation expense | $ 60 | 60 | ||||
Balance at end of period at Dec. 31, 2016 | $ 41,705 | $ 23,874 | 2,872 | 16,194 | (1,235) | |
Balance at end of period, Shares at Dec. 31, 2016 | 4,774,856 | 4,774,856 | ||||
Net (loss) income | $ (1,272) | (1,272) | ||||
Other comprehensive (loss) income | 267 | 267 | ||||
Dividends declared ($0.12 per share) | (1,431) | (1,431) | ||||
Issuance of common stock in connection with Virginia BanCorp acquisition | 42,245 | $ 22,931 | 20,225 | $ (911) | ||
Issuance of common stock in connection with Virginia BanCorp acquisition, Shares | 4,586,221 | |||||
Shares issued via private placement net of $2.2 million of issuance cost | 32,805 | $ 18,919 | 13,886 | |||
Shares issued via private placement net of $2.2 million of issuance costs, Shares | 3,783,784 | |||||
Tax Cuts and Jobs Act of 2017, reclassification from AOCI to retained earnings, tax effect | (188) | 188 | (188) | |||
Stock options exercised | $ 254 | $ 217 | 37 | |||
Stock options exercised, Shares | 43,244 | 43,244 | ||||
Restricted shares granted | $ 77 | (77) | ||||
Restricted shares granted, Shares | 15,500 | |||||
ESOP loan | $ (351) | (351) | ||||
ESOP compensation expense | 133 | 133 | ||||
Stock compensation expense | 199 | 199 | ||||
Balance at end of period at Dec. 31, 2017 | $ 114,554 | $ 66,018 | $ 37,142 | $ (1,129) | $ 13,679 | $ (1,156) |
Balance at end of period, Shares at Dec. 31, 2017 | 13,203,605 | 13,203,605 |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($)$ / shares | |
Dividends declared per share | $ / shares | $ 0.12 |
Shares issued via private placement, net of issuance costs | $ | $ 2.2 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Cash Flows From Operating Activities | ||
Net (loss) income | $ (1,272) | $ 2,535 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 1,435 | 1,057 |
Net amortization and accretion of securities | 411 | 424 |
Amortization of core deposit intangible | 679 | |
Accretion of time deposits | (307) | |
Amortization of subordinated debt issuance costs | 17 | 16 |
Accretion of loan discount | (1,907) | |
Provision for loan losses | 4,934 | 287 |
Stock and ESOP compensation expense | 332 | 60 |
Deferred income tax expense (benefit) | 435 | (88) |
Gain on securities available-for-sale | (2) | (435) |
Increase in OREO valuation allowance | 245 | 53 |
(Gain) Loss on sale of other real estate | (23) | 74 |
Loss on disposal of fixed assets | 220 | |
Mortgage servicing rights | (4) | (13) |
Increase in cash surrender value of life insurance | (474) | (274) |
Loan originations for sale | (13,446) | (22,399) |
Loan sales | 12,545 | 22,871 |
Gain on loans sold | (473) | (628) |
Increase in accrued income and other assets | (2,077) | (147) |
Increase in other liabilities | 2,370 | 506 |
Net cash provided by operating activities | 3,638 | 3,899 |
Cash Flows From Investing Activities | ||
Proceeds from maturities and principal paydowns of available-for-sale securities | 3,911 | 4,224 |
Proceeds from sales and calls of available-for-sale securities | 17,937 | 19,509 |
Maturities of certificates of deposits | 992 | 1,488 |
Purchase of bank owned life insurance | (2,000) | |
Purchases of available-for-sale securities | (25,979) | (21,727) |
Sales (purchases) of restricted securities | (1,595) | 82 |
Increase in federal funds sold | (4,611) | (2,079) |
Loan (originations) and principal collections, net | (79,452) | (29,178) |
Proceeds from the sale of VISA loan portfolio | 1,301 | |
Loan purchases and principal collections, net | (34,809) | (11,561) |
Cash acquired in the merger with Virginia Commonwealth | 14,698 | |
Proceeds from sale of other real estate | 1,193 | 342 |
Proceeds from sale of equipment | 9 | |
Purchases of premises and equipment | (2,237) | (256) |
Net cash used in investing activities | (109,943) | (39,855) |
Cash Flows From Financing Activities | ||
Increase in demand, savings, and other interest-bearing deposits | 3,430 | 21,198 |
Net increase in time deposits | 109,074 | 662 |
Stock options exercised | 254 | |
Net increase (decrease) in securities sold under repurchase agreements | (8,812) | 11,149 |
Issuance of stock, net | 32,805 | |
Dividends paid | (1,431) | |
(Decrease) increase in Federal Home Loan Bank advances | 10,000 | (5,000) |
Net cash provided by financing activities | 145,320 | 28,009 |
Net increase (decrease) in cash and cash equivalents (including interest-earning deposits | 39,015 | (7,947) |
Cash and cash equivalents (including interest-earning deposits) at beginning of period | 12,352 | 20,299 |
Cash and cash equivalents (including interest-earning deposits) at end of period | 51,367 | 12,352 |
Cash paid for: | ||
Interest | 6,003 | 3,538 |
Income taxes | 420 | 470 |
Non-cash investing and financing: | ||
Unrealized (loss) gain on investment securities | 142 | (950) |
Change in fair value of pension and post-retirement obligation | 239 | 255 |
Loans transferred to other real estate owned | 294 | 1,943 |
Loans originated to facilitate sale of OREO | 190 | 850 |
Changes in deferred taxes resulting from OCI transactions | (114) | 236 |
Transfer of loans to held for sale | $ 1,173 | |
ESOP Loan | 351 | |
Business combination: | ||
Assets acquired, net of cash acquired | 314,437 | |
Liabilities assumed | 294,454 | |
Net assets acquired, net of cash acquired | $ 19,983 |
Organization and Presentation
Organization and Presentation | 12 Months Ended |
Dec. 31, 2017 | |
Organization and Presentation | Note 1. Organization and Presentation Organization. Virginia Commonwealth Bank (the “Bank”) is a state-chartered bank and a member of the Federal Reserve System. It serves businesses, professionals and consumers in the Greater Richmond area, the Tri-Cities VCB Financial Group, Inc. (the “Financial Group”) provides management services for personal and corporate trusts, including estate planning, estate settlement, and trust administration from its main office in Kilmarnock, Virginia. Products include revocable and irrevocable living trusts, testamentary trusts, custodial accounts, investment management accounts and managed, as well as self-directed, rollover Individual Retirement Accounts. Basis of Presentation. Certain amounts presented in the consolidated financial statements of prior periods have been reclassified to conform to the current year presentations. The reclassifications had no effect on net income, net income per share or shareholders’ equity as previously reported. |
Business Combination
Business Combination | 12 Months Ended |
Dec. 31, 2017 | |
Business Combination | Note 2. Business Combination On April 1, 2017, the Company and Virginia BanCorp Inc. (“Virginia BanCorp”), a bank holding company conducting substantially all of its operations through it subsidiary Virginia Commonwealth Bank, completed a merger pursuant to the Agreement and Plan of Merger dated as of November 2, 2016, by and between the Company and Virginia BanCorp. The Company is the surviving corporation in the merger and the former shareholders of Virginia BanCorp received 1.178 shares of the Company’s common stock for each share of Virginia BanCorp common stock they owned immediately prior to the merger, for a total issuance of 4,586,221 shares of the Company’s common stock valuded at approximately $42.2 million. As of the completion of the merger, the Company’s legacy shareholders owned approximately 51% of the outstanding common stock of the Company and Virginia BanCorp’s former shareholders owned appropriately 49% of the outstanding common stock of the Company. After the merger of Virginia BanCorp with and into the Company, Virginia BanCorp’s subsidiary bank was merged with and into Bank of Lancaster, and immediately thereafter Bank of Lancaster changed its name to Virginia Commonwealth Bank. Bank operating systems were consolidated during the fourth quarter of 2017. The acquisition was accounted for using the acquisition method of accounting in accordance with Accounting Standards Codification 805, Business Combinations. Under this method, the assets and liabilities of Virginia BanCorp were recorded at their respective fair values as of April 1, 2017. Determining the fair value of assets and liabilities, particularly to the loan portfolio, is a complex process involving significant judgment regarding methods and assumptions used to calculate the estimated fair values. The fair values are preliminary and subject to refinement for up to one year after the acquisition date, as additional information relative to the acquisition date fair values becomes available. The Company recognized goodwill of $7.6 million in connection with the acquisition, none of which is deductible for income tax purposes. The following table details the total consideration paid by the Company on April 1, 2017 in connection with the acquisition of Virginia BanCorp, the fair value of the assets acquired and liabilities assumed, and the resulting goodwill. Fair Value As Recorded As Recorded and Reclassification by the (Dollars in thousands) by VCB Adjustments Company Consideration paid: Bay Banks of Virginia, Inc. common stock $ 42,247 Identifiable assets acquired: Cash and due from banks $ 2,356 $ — $ 2,356 Interest-bearing deposits 12,342 — 12,342 Securities available-for-sale 22,088 — 22,088 Restricted securities 1,543 — 1,543 Loans receivable 272,479 (62,068 ) 210,411 Loans held for sale — 55,648 55,648 Deferred income taxes 1,325 255 1,580 Premises and equipment 3,333 2,703 6,036 Accrued interest receivable 1,253 (24 ) 1,229 Other real estate owned 3,113 — 3,113 Core deposit intangible — 3,670 3,670 Bank owned life insurance 8,430 — 8,430 Mortgage servicing rights 324 — 324 Other assets 365 — 365 Total identified assets acquired 328,951 184 329,135 Identifiable liabilities assumed: Noninterest-bearing deposits 21,119 — 21,119 Savings and interest-bearing demand deposits 124,640 — 124,640 Time deposits 121,437 733 122,170 Federal Home Loan Bank advances 25,000 — 25,000 Other liabilities 1,525 — 1,525 Total identifiable liabilities assumed 293,721 733 294,454 Total identifiable assets assumed $ 35,230 $ (549 ) $ 34,681 Goodwill resulting from acquisition $ 7,566 Fair value of the major categories of assets acquired and liabilities assumed were determined as follows: Loans The acquired loans were recorded at fair value at the acquisition date of $266.1 million without carryover of Virginia BanCorp’s allowance for loan losses. Where loans exhibited characteristics of performance, fair value was determined based on a discounted cash flow analysis which included default estimates; loans without such characteristics, fair value was determined based on the estimated values of the underlying collateral. While estimating the amount and timing of both principal and interest cash flows expected to be collected, a market-based discount rate was applied. In this regard, the acquired loans were segregated into pools based on loan type and credit risk. Loan type was determined based on collateral type and purpose, industry segment and loan structure. Credit risk characteristics included risk rating groups pass, special mention, substandard, and doubtful and lien position. For valuation purposes, these pools were further disaggregated by maturity and pricing characteristics (e.g., fixed-rate, adjustable-rate, balloon maturities). One pool of purchased performing consumer loans was reevaluated after the initial recording of the transaction due to higher charge-offs than originally estimated. As a result, the discount on this pool was increased by $2.2 million, and the related deferred tax asset increased by $735 thousand which increased the previously disclosed goodwill by $1.4 million. These adjustments are reflected in the table above. At April 1, 2017, the gross contractual amounts of receivable and the fair value for the purchased credit impaired loans (“PCI”) were $8.3 million, while the estimated cash flows expected to be collected were approximately $7.4 million. Information about the PCI loan portfolio at April 1, 2017 is as follows: (Dollars in thousands) April 1, 2017 Contractual principal and interest due $ 8,303 Nonaccretable difference 869 Expected cash flows 7,434 Accretable yield 1,354 Purchased credit impaired loans—estimated fair value $ 6,080 Loans which totaled approximately $55.4 million which were acquired were held for sale as of June 30, 2017. Management decided to withdraw these loans from held for sale status and classified them back as held to maturity loans in the 3rd quarter of 2017. Premises and Equipment The fair value of Virginia BanCorp premises, including land, buildings and improvements, was determined based upon appraisal by licensed appraisers. These appraisals were based upon the best and highest use of the property with final values determined based upon an analysis of the cost, sales comparison and income capitalization approaches for each property appraised. The fair value of premises and equipment resulted in a $2.7 million fair value adjustment. Land is not depreciated. Core Deposit Intangible The fair value of the core deposit intangible (“CDI”) was determined based on a combined discounted economic benefit and market approach. The economic benefit was calculated as the cost savings between maintaining the core deposit base and using an alternate funding source, such as Federal Home Loan Bank of Atlanta (“FHLB”) advances. The life of the deposit base and projected deposit attrition rates was determined using Virginia BanCorp’s historical deposit data. The CDI fair value was estimated at $3.7 million or 2.52% of acquired deposits, excluding time deposits. The CDI is being amortized over a weighted average life of 92 months using a sum-of-the-months’ Time Deposits The fair value adjustment of time deposits represents a premium over the value of the contractual repayments of fixed-maturity deposits using prevailing market interest rates for similar term certificates of deposit. The resulting estimated fair value adjustment of certificates of deposit ranging in maturity from one month to five years is a $733 thousand premium and is being amortized into income on a level-yield basis over the weighted average remaining life. FHLB Advances The fair value of FHLB advances was considered to be equivalent to Virginia BanCorp’s recorded book balance as the advances matured on April 30, 2017. Deferred Tax Assets and Liabilities Certain deferred tax assets and liabilities were carried over to the Company from Virginia BanCorp based on the Company’s ability to utilize them in the future. Additionally, deferred tax assets and liabilities were established for acquisition accounting fair value adjustments as the future amortization/accretion of these adjustments represent temporary differences between book income and taxable income. Pro Forma Financial Information The table below illustrates the unaudited pro forma revenue and net income of the combined entities had the acquisition taken place on January 1, 2016. The unaudited combined pro forma revenue and net income combines the historical results of Virginia BanCorp with the Company’s consolidated statements of operations for the period listed below, and while certain adjustments were made for the estimated effect of certain fair value adjustments and other acquisition-related activity, they are not indicative of what would have occurred had the acquisition actually taken place on January 1, 2016. Acquisition related expenses of $2.0 million were included in the Company’s actual consolidated statements of operations for the year ended December 31, 2017, but were excluded from the unaudited pro forma information listed below. Legacy Virginia BanCorp incurred $174 thousand of merger related expenses during the first three months of 2017 which was also excluded from the unaudited pro forma information below. Additionally, the Company expects to achieve further operational cost savings and other efficiencies as a result of the acquisition which are not reflected in the unaudited pro forma amounts below: For the Years Ended (Dollars in thousands) December 31, 2017 December 31, 2016 Net interest income $ 27,169 $ 27,342 Net income 1,825 6,182 Impact of Certain Acquisition Accounting Adjustments The net effect of the amortization and accretion of premiums and discounts associated with the Company’s acquisition accounting adjustments to assets acquired and liabilities assumed from Virginia BanCorp had the following impact on the consolidated statements of operations for the years ended December 31, 2017. Year Ended (Dollars in thousands) December 31, 2017 Loans (1) $ 1,907 Core deposit intangible (2) (679 ) Time deposits (3) 307 Depreciation (4) (30 ) Net impact to income before income taxes $ 1,505 (1) Loan discount accretion is included in the “Loans, including fees” section of “Interest Income” in the consolidated statements of operations. (2 ) Premium amortization is included in “Other expense” section of “Non-Interest (3) Time deposit premium amortization is included in the “Deposits” section of “Interest Expense” in the consolidated statements of operations. (4) Depreciation on the fair value mark up of fixed assets is included in “Occupancy expense” section of “Non-Interest |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Significant Accounting Policies | Note 3. Significant Accounting Policies Use of estimates The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions. The amounts recorded in the consolidated financial statements may be affected by those estimates and assumptions. Actual results may vary from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the measurement of fair value of foreclosed real estate, deferred taxes, impairment testing of goodwill, projected pension and post-retirement obligations and fair value measurements. Cash and cash equivalents For purposes of the consolidated statements of cash flows, cash and cash equivalents include cash and balances due from banks, all of which mature within ninety days. Interest-bearing deposits in banks are carried at cost, which mature within one year, and include deposits with the Federal Reserve Bank of Richmond. Securities Investments in debt and equity securities with readily determinable fair values are classified as either held to maturity, available-for-sale, available-for-sale. available-for-sale Impairment of securities occurs when the fair value of a security is less than its amortized cost. For debt securities, impairment is considered other-than-temporary and recognized in its entirety in net income if (i) there is evidence of credit related impairment; (ii) the Company intends to sell the security or (iii) it is more-likely-than-not more-likely-than-not Securities sold under repurchase agreements Securities sold under repurchase agreements, which are classified as secured borrowings, generally mature within one year from the transaction date. Securities sold under repurchase agreements are reflected at the amount of cash received in connection with the transaction. The Company is required to provide collateral based on the value of the underlying cash. Loans The Company grants mortgage loans on real estate, commercial and industrial loans and consumer and other loans to customers. A substantial portion of the loan portfolio is represented by mortgage loans on real estate. The ability of the Company’s debtors to honor their contracts is dependent upon the real estate and general economic conditions in the Company’s market areas. Loans are reported at their recorded investment, which is the outstanding principal balance net of any unearned income, such as deferred fees and costs, charge-offs, discounts on acquired loans, and premiums or discounts on purchased loans. Interest on loans is recognized over the term of the loan and is calculated using the interest method on principal amounts outstanding. Loan origination fees and certain direct origination costs are deferred and recognized as an adjustment of the related loan yield over the contractual term of the loan, adjusted for early pay-offs, The accrual of interest is generally discontinued at the time a loan is 90 days or more past due, or earlier, if collection is uncertain based on an evaluation of the net realizable value of the collateral and the financial strength of the borrower. Loans greater than 90 days past due may remain on accrual status if the credit is well-secured and in process of collection. Personal loans are typically charged off no later than 180 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are charged off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual and past due policies are materially the same for all types of loans with the exception of PCI loans whose discount is being accreted to interest income. All interest accrued but not collected for loans that are placed on non-accrual Charge-Off As soon as any loan becomes uncollectible, the loan will be charged down or charged off as follows: • If unsecured, the loan must be charged off in full. • If secured, the outstanding principal balance of the loan should be charged down to the net realizable value of the collateral. Loans should be considered uncollectible when: • No regularly scheduled payment has been made within four months, or • The loan is unsecured, the borrower files for bankruptcy protection and there is no other (guarantor, etc.) support from an entity outside of the bankruptcy proceedings Troubled debt restructuring (“TDR”) In some situations, for economic or legal reasons related to a borrower’s financial condition, management may grant a concession to a borrower that it would not otherwise consider. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal, the related loan is classified as a troubled debt restructuring. Management strives to identify borrowers in financial difficulty early and work with them to modify their loan to more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. Management measures all TDRs for impairment as noted below for impaired loans. Allowance for loan losses (“ALL”) The ALL reflects management’s judgment of probable loan losses inherent in the portfolio at the balance sheet date. Management uses a disciplined process and methodology to establish the ALL each quarter. To determine the total ALL, the Company estimates the reserves needed for each homogenous segment and class of the portfolio, plus any loans analyzed individually for impairment. Depending on the nature of each segment and class, considerations include historical loss experience, adverse situations that may affect a borrower’s ability to repay, credit scores, past due history, estimated value of any underlying collateral, prevailing local and national economic conditions, and internal policies and procedures including credit risk management and underwriting. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as conditions change. Management employs a risk rating system to evaluate and consistently categorize loan portfolio credit risk. Prior to the merger, loans that were assigned risk rating grades included all commercial loans not secured by real estate, commercial mortgages, residential mortgages greater than $1 million, smaller residential mortgages which were impaired, loans to real estate developers and contractors, consumer loans greater than $250 thousand with chronic delinquency, and TDRs. All other loans that were not specifically assigned a risk rating grade were monitored as a discrete pool of loans generally based on delinquency status. Subsequent to the merger and core system conversion, with the exception of purchased consumer loan pools, all loans are risk rated using loan risk grading software that employs a variety of algorithms based on detailed account characteristics, which include a borrower’s payment history on a total relationship basis, as well as loan to value exposure. For non-homogeneous loans, management reviews these resulting grade assignments and makes adjustments to the final grade where appropriate based on an assessment of additional external information that may affect a particular loan. Purchased consumer loan pools are evaluated on a homogenous basis such that any balances past due by 90 days or more are rated substandard. Risk rating categories are as follows: Pass Watch Special Mention Substandard Doubtful Loss The ALL consists of specific, general, and unallocated components. The specific component is determined by identifying impaired loans (as described below) then evaluating each one to calculate the amount of impairment. Impaired loans measured for impairment generally include (1) any loan risk rated Special Mention or worse where the borrower has filed for bankruptcy; (2) all loans risk rated Substandard or worse with balances of $400 thousand or more; and (3) all loans classified as a TDR. A specific allowance arises when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component collectively evaluates any loans not identified as impaired, which are typically smaller commercial loans, residential mortgages and consumer loans, grouped into segments and classes. Historical loss experience is calculated and applied to each segment or class, then adjusted for qualitative factors. Qualitative factors include changes in local and national economic indicators, such as unemployment rates, interest rates, gross domestic product growth and real estate market trends; the level of past due and nonaccrual loans; risk ratings on individual loans; strength of credit policies and procedures; loan officer experience; borrower credit scores; and other intrinsic risks related to the types and geographic locations of loans. These qualitative adjustments reflect management’s judgment of risks inherent in the segments. An unallocated component is maintained if needed to cover uncertainties that could affect management’s estimate of probable losses. Changes in the allowance for loan losses and the related provision expense can materially affect net income. The specific component of the ALL calculation accounts for the loan loss reserve necessary on impaired loans. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not considered impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case The general component of the ALL calculation collectively evaluates groups of loans in segments and classes, as noted above. The segments are: (1) Mortgage loans on real estate; (2) Commercial and industrial loans; and (3) Consumer and other loans. The segment for Mortgage loans on real estate is disaggregated into the following classes: (1) Construction, land and land development; (2) Farmland; (3) Residential first mortgages; (4) Residential revolving and junior mortgages; (5) Commercial mortgages (non-owner-occupied); Construction and development loans carry risks that the project will not be finished according to schedule or according to budget and the value of the collateral, at any point in time, may be less than the principal amount of the loan. These loans also bear the risk that the general contractor may face financial pressure unrelated to the project. Loans secured by land, farmland and residential mortgages carry the risk of continued credit-worthiness of the borrower and changes in value of the underlying real estate collateral. Commercial mortgages and commercial and industrial loans carry risks associated with the profitable operation of a business and its related cash flows. Additionally, commercial and industrial loans carry risks associated with the value of collateral other than real estate which may depreciate over time. Consumer loans carry risks associated with the continuing credit-worthiness of the borrower and are more likely than real estate loans to be adversely affected by divorce, unemployment, personal illness or bankruptcy of an individual. Consumer loans secured by automobiles carry risks associated with rapidly depreciating collateral. Consumer loans include loans and debt consolidation loans purchased from third parties. Consumer loans have historically included credit cards, which are unsecured. The credit card portfolio was sold to an unaffiliated third party in the third quarter of 2016. The summation of the specific, general and unallocated components results in the total estimated ALL. This estimate is inherently subjective and actual losses could be greater or less than the estimates. Additions to the ALL are made by charges to earnings through the provision for loan losses. Charge-offs result from credit exposures deemed to be uncollectible and the ALL is reduced by these. Recoveries of previously charged off amounts are credited back to the ALL. Charge-off Loans Acquired in a Business Combination The Company accounts for loans acquired in a business combination in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805, “Business Combinations.” Accordingly, acquired loans are segregated between PCI loans and purchased performing loans (“PPL”) and are recorded at fair value on the date of acquisition without the carryover of the related allowance for loan losses. PCI loans are those for which there is evidence of credit deterioration since origination and for which it is probably at the date of acquisition that the Company will not collect all contractually required principal and interest payments. When determining the market value, PCI loans were aggregated into pools of loans based on common characteristics as of the date of acquisition such as loan type, date of origination, and evidence of credit quality deterioration such as internal risk grades and past due and nonaccrual status. The Company estimates the amount and timing of expected cash flows for each loan or pool, and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan or pool (accretable yield). These estimates include certain prepayment assumptions based on the nature of each loan pool. The excess of the loan’s or pool’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded as a provision for loan losses. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. Loans not designated PCI loans as of the acquisition date are designated purchased performing loans. The Company accounts for purchased performing loans using the contractual cash flows method of recognizing discount accretion based on the acquired loans’ contractual cash flows. Purchased performing loans are recorded at fair value, including a credit discount. The fair value discount is accreted as an adjustment to yield over the estimated lives of the loans. There is no allowance for loan losses established at the acquisition date for purchased performing or PCI loans. A provision for loan loses is recorded for any deterioration in these loans subsequent to the acquisition. Mortgage servicing rights (“MSRs”) MSRs are included on the consolidated balance sheets and recorded at fair value on an ongoing basis. Changes in the fair value of the MSRs are recorded in the results of operations. A fair value analysis of MSRs is performed on a quarterly basis. Premises and equipment, net Land is carried at cost. Premises and equipment are carried at cost less accumulated depreciation. Depreciation is computed by the straight-line method over the estimated useful lives of the premises and equipment. Estimated useful lives range from 10-40 3-10 Other real estate owned, net Real estate properties acquired through, or in lieu of, loan foreclosure are marketed for sale and are initially recorded at the lesser of the fair value on the date of foreclosure less estimated selling costs or carrying value of the loan. After acquisition, management acquires new valuations at least every two years. Revenue and expenses related to the operation or maintenance of foreclosed properties are included in expenses from foreclosed assets and changes in the valuation allowance are included in other real estate gains (losses). Goodwill and Intangible Assets Goodwill is related to unidentifiable intangible assets arising from the merger with Virginia BanCorp on April 1, 2017 and the acquisition of five branches during the years 1994 through 2000. Goodwill is tested annually for impairment. If impairment exists, the amount of impairment would result in a charge to expense. Intangible assets with definite useful lives are amortized over their estimated useful lives, to their estimated residual values. Goodwill is the only intangible asset with an indefinite life included on the Company’s Consolidated Balance Sheets. The core deposit intangible is the only intangible asset with a definite useful life, and is being amortized over 92 months. Long-lived assets, including purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Management concluded that no circumstances indicating an impairment of these assets existed as of the balance sheet date. Income taxes Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would ultimately be sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not The Company evaluates its deferred tax assets quarterly to determine if it is more likely than not those assets will be recovered and if a valuation allowance is needed. At December 31, 2017, the Company determined no valuation allowance related to its deferred tax assets was necessary. Pension benefits The Company has a non-contributory Postretirement benefits The Company provides certain health care benefits for employees who retired prior to March 1, 2018 and met eligibility requirements. Employer Stock Ownership Plan (“ESOP”) The Company currently has two ESOPs for the benefit of all eligible employees. Shares held by the legacy ESOP of the former Bank of Lancaster employees are considered outstanding for purposes of computing earnings per share as they are fully allocated. Unearned ESOP shares in the ESOP acquired in the Virginia BanCorp merger, are shown as a reduction of shareholders’ equity. The unearned ESOP shares are not included in basic or diluted earnings per share calculation as discussed in Note 18 until those shares are allocated to participants’ accounts. The use of dividends paid on allocated ESOP shares are at the discretion of the Company. Dividends on unallocated ESOP shares, if paid, are considered to be compensation expense. The Company recognizes compensation cost equal to the fair value of the ESOP shares during the periods in which they are committed to be released. The Company recognizes a tax deduction equal to the cost of shares released. The unearned ESOP shares are pledged to a third party to collateralize a direct loan to the ESOP. The loan is guaranteed by the Company and is recorded on the Company’s consolidated balance sheets. Trust assets and income Customer assets held by the Financial Group, other than cash on deposit at the Bank, are not included in these financial statements, since such items are not assets of the Bank or the Financial Group. Trust fees are recorded on the accrual basis. Earnings per share Basic earnings per share represent income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued by the Company relate solely to outstanding stock options. Shares held by the ESOP which collateralize ESOP borrowings are excluded from both basic and diluted averages shares outstanding. Refer to Note 20. Off-balance-sheet In the ordinary course of business, the Company enters into off-balance-sheet Significant group concentration of credit risk Most of the Company’s business activity is with customers located in the Virginia counties of Lancaster, Northumberland, Richmond, Westmoreland, Middlesex, Chesterfield, Henrico and the City of Richmond, Virginia. The Company makes residential, commercial and consumer loans and a significant amount of the loan portfolio is comprised of real estate mortgage loans, which are secured primarily by single-family residences. The adequacy of collateral on real estate mortgage loans is highly dependent on changes in real estate values. Advertising Advertising costs are expensed as incurred and totaled $664 thousand and $197 thousand for the years ended December 31, 2017 and 2016, respectively. Comprehensive income Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains or losses on securities available-for-sale Fair value of financial instruments Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 22. Fair value estimates involve uncertainties and matters of significant judgment. Changes in assumptions or in market conditions could significantly affect the estimates. Transfers of financial assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (1) the assets have been isolated from the Company – put presumptively beyond reach of the transferor and its creditors, even in bankruptcy or other receivership; (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets; and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. Stock-based compensation plans Authoritative accounting guidance requires companies to recognize the cost of employee services received in exchange for awards of equity instruments, such as stock options and restricted stock, based on the fair value of those awards at the date of grant. This cost is recognized over the vesting period of the respective awards. Recent Accounting Pronouncements . In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-02, 2018-02 In March 2017, the FASB issued ASU No. 2017-09, “Compensation – Stock Compensation (Topic 718).” ASU 2017-09 will In March 2017, the FASB issued ASU No. 2017-08, “Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities.” ASU 2017-08 will In March 2017, the FASB issued ASU 2017-07, “Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” ASU 2017-07 will ASU 2017-07 in In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), off-balance held-to-maturity 2016-13 available-for-sale available-for-sale available-for-sale 2016-13 non-accrual In February 2016, the FASB issued ASU 2016-02, 2016-02 2016-02 In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall 825-10) available-for-sale available-for 2016-01. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers 2014-09 2014-09 2014-09. 2014-09, |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Intangible Assets | Note 4. Intangible Assets The Company’s intangible assets consist of core deposits, goodwill, and mortgage servicing rights arising from previous and current acquisitions. The Company has determined that the core deposit intangible has a finite life and amortizes it over its estimated useful life. The core deposit intangible asset is being amortized over the period of expected benefit, which is 92 months, using the sum-of-the-months digits method. On April 1, 2017, the Company completed the acquisition of Virginia BanCorp and acquired core deposit intangible assets of $3.7 million and $7.6 million of goodwill. The Company also has goodwill relating to the purchase of five branches during the years 1994 through 2000. The balance of the goodwill at both December 31, 2017 and 2016, as reflected on the consolidated balance sheets, was $10.4 million and $2.8 million, respectively. Management determined that the branch purchases qualified as acquisitions of businesses and that the related unidentifiable intangibles were goodwill. Intangible assets with indefinite lives are tested annually for impairment. The test performed on goodwill using financial information as of September 30, 2017 found no impairment. Subsequently, the Company updated its consideration of goodwill impairment as of December 31, 2017 and reaffirmed that no impairment existed. Information concerning intangible assets with a finite life is presented in the following table: (Dollars in thousands) Gross Carrying Accumulated Net Carrying December 31, 2017 Value Amortization Value Core deposit intangibles $ 3,670 $ 679 $ 2,991 Other intangibles 999 — 999 $ 4,669 $ 679 $ 3,990 Gross Carrying Accumulated Net Carrying December 31, 2016 Value Amortization Value Other intangibles $ 671 $ — $ 671 Amortization expense of core deposit intangibles for the years ended December 31, 2017, and 2016 totaled $679 thousand and $0, respectively. As of December 31, 2017, the estimated remaining amortization expense of core deposit intangibles is as follows: (Dollars in thousands) 2018 $ 798 2019 674 2020 551 2021 427 2022 304 Thereafter 237 Total estimated amortization expense $ 2,991 |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2017 | |
Investment Securities | Note 5. Investment Securities The aggregate amortized cost and fair values of the available-for-sale (Dollars in thousands) Gross Gross Available-for-sale Amortized Unrealized Unrealized Fair December 31, 2017 Cost Gains (Losses) Value Corporate bonds $ 6,696 $ 23 $ (2 ) $ 6,717 U.S. Government agencies and mortgage backed securities 49,964 6 (687 ) 49,283 State and municipal obligations 21,113 195 (155 ) 21,153 $ 77,773 $ 224 $ (844 ) $ 77,153 Gross Gross Available-for-sale Amortized Unrealized Unrealized Fair December 31, 2016 Cost Gains (Losses) Value Corporate bonds $ 7,695 $ 14 $ (5 ) $ 7,704 U.S. Government agencies and mortgage backed securities 25,668 53 (408 ) 25,313 State and municipal obligations 18,566 49 (459 ) 18,156 $ 51,929 $ 116 $ (872 ) $ 51,173 The cost of securities sold is based on actual net cost. Gross realized gains and gross realized losses, as well as proceeds on sales and calls of securities, were as follows: For the years ended December 31, (Dollars in thousands) 2017 2016 Gross realized gains $ 7 $ 445 Gross realized losses (5 ) (10 ) Net realized gains $ 2 $ 435 Aggregate proceeds $ 17,937 $ 19,509 The aggregate amortized cost and market values of the investment securities portfolio by contractual maturity at December 31, 2017, are shown below: (Dollars in thousands) Amortized Cost Fair Value Due in one year or less $ 3,583 $ 3,514 Due after one year through five years 37,746 37,425 Due after five through ten years 28,442 28,250 Due after ten years 8,002 7,964 $ 77,773 $ 77,153 Average yields (taxable equivalent) on securities were 3.02% and 3.09% for the years ended December 31, 2017 and 2016, respectively. Securities with a market value of $19.4 million and $19.1 million at December 31, 2017 and 2016, respectively, were pledged as collateral for repurchase agreements and for other purposes as required by law. As of December 31, 2017 and 2016, all the securities pledged to repurchase agreements were state and municipal obligations. All the repurchase agreements had remaining contractual maturities that were overnight and continuous. Securities sold under repurchase agreements were $9.5 million and $18.3 million as of December 31, 2017 and December 31, 2016, respectively, and included in liabilities on the consolidated balance sheets. The securities pledged to each agreement are reviewed daily and can be changed at the option of the Bank with minimal risk of loss due to fair value. Securities in an unrealized loss position at December 31, 2017 and 2016, by duration of the unrealized loss, are shown below. The unrealized loss positions were directly related to interest rate movements as there is minimal credit risk exposure in these investments. All agency securities, states and municipal securities and certificates of deposit are investment grade or better and their losses are considered temporary. The corporate bonds are subordinated debt notes issued by financial institutions. Management does not intend to sell the securities and does not expect to be required to sell the securities. All amortized cost bases are expected to be recovered. At December 31, 2017, there was one corporate bond in an unrealized loss position. Bonds with unrealized loss positions at December 31, 2016, included 37 federal agencies, one corporate bond and 39 municipals. (Dollars in thousands) Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2017 Value Loss Value Loss Value Loss Corporate bonds $ 498 $ (2 ) $ — $ — $ 498 $ (2 ) U.S. Government agencies 25,053 (353 ) 16,184 (334 ) 41,237 (687 ) States and municipal obligations 2,753 (15 ) 5,787 (140 ) 8,540 (155 ) Total temporarily impaired securities $ 28,304 $ (370 ) $ 21,971 $ (474 ) $ 50,275 $ (844 ) Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2016 Value Loss Value Loss Value Loss Corporate bonds $ 995 $ (5 ) $ — $ — $ 995 $ (5 ) U.S. Government agencies 20,933 (396 ) 1,308 (12 ) 22,241 (408 ) States and municipal obligations 12,888 (459 ) — — 12,888 (459 ) Total temporarily impaired securities $ 34,816 $ (860 ) $ 1,308 $ (12 ) $ 36,124 $ (872 ) The Company’s investment in Federal Home Loan Bank of Atlanta (“FHLB”) stock totaled $3.7 million and $1.9 million at December 31, 2017 and December 31, 2016, respectively, and are included in restricted securities on the consolidated balance sheets. The Company also had an investment in Federal Reserve Bank of Richmond (“FRB”) stock which totaled $1.9 million and $580 thousand at December 31, 2017 and December 31, 2016. The investments in both FHLB and FRB stock are required investments related to the Bank’s membership with the FHLB and FRB. These securities do not have a readily determinable fair value as their ownership is restricted, and they lack an active market for trading. Additionally, per charter provisions related to the FHLB and FRB stock, all repurchase transactions of such stock must occur at par. Accordingly, these securities are carried at cost, and are periodically evaluated for impairment. The Company’s determination as to whether its investment in FHLB and FRB stock is impaired is based on management’s assessment of the ultimate recoverability of its par value rather than recognizing temporary declines in its value. The determination of whether the decline affects the ultimate recoverability of the investments is influenced by available information regarding various factors. These factors include, among others, the significance of the decline in net assets of the issuing banks as compared to the capital stock amount reported by these banks, and the length of time a decline has persisted; commitments by such banks to make payments required by law or regulation and the level of such payments in relation to the operating performance of the issuing bank; and the overall liquidity position of the issuing bank. Based on its most recent analysis of publicly available information regarding the financial condition of the issuing banks, management concluded that no impairment existed in the carrying value of FHLB and FRB stock. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2017 | |
Loans | Note 6. Loans The following is a summary of the balances of loans: (Dollars in thousands) December 31, 2017 December 31, 2016 Mortgage loans on real estate: Construction, Land and Land Development $ 66,042 $ 39,818 Farmland 923 1,023 Commercial Mortgages (Non-Owner 146,757 35,343 Commercial Mortgages (Owner Occupied) 80,052 41,825 Residential First Mortgages 269,365 194,007 Residential Revolving and Junior Mortgages 46,498 26,425 Commercial and Industrial loans 114,093 43,024 Consumer Loans 42,566 3,544 Total loans 766,296 385,009 Net unamortized deferred loan costs 200 391 Allowance for loan losses (7,770 ) (3,863 ) Loans, net $ 758,726 $ 381,537 The recorded investment in past due and non-accruing 90 Days or 30-89 More Past Total Past (Dollars in thousands) Days Due and Due and Total December 31, 2017 Past Due Still Accruing Nonaccruals Nonaccruals Current Loans Mortgage Loans on Real Estate: Construction, Land and Land Development $ 261 $ — $ 1,237 $ 1,498 $ 64,544 $ 66,042 Farmland — 48 — 48 875 923 Commercial Mortgages (Non-Owner 449 — — 449 146,308 146,757 Commercial Mortgages (Owner Occupied) 412 — 1,752 2,164 77,888 80,052 Residential First Mortgages 2,321 — 1,942 4,263 265,102 269,365 Residential Revolving and Junior Mortgages 449 — 1,338 1,787 44,711 46,498 Commercial and Industrial 331 — 92 423 113,670 114,093 Consumer Loans 288 — 135 423 42,143 42,566 Total $ 4,511 $ 48 $ 6,496 $ 11,055 $ 755,241 $ 766,296 90 Days or 30-89 More Past Total Past Days Due and Due and Total December 31, 2016 Past Due Still Accruing Nonaccruals Nonaccruals Current Loans Mortgage Loans on Real Estate: Construction, Land and Land Development $ — $ — $ 623 $ 623 $ 39,195 $ 39,818 Farmland 57 — — 57 966 1,023 Commercial Mortgages (Non-Owner — — — — 35,343 35,343 Commercial Mortgages (Owner Occupied) 188 — 2,270 2,458 39,367 41,825 Residential First Mortgages 1,546 — 2,155 3,701 190,306 194,007 Residential Revolving and Junior Mortgages 480 — 160 640 25,785 26,425 Commercial and Industrial 408 — 92 500 42,524 43,024 Consumer Loans — — — — 3,544 3,544 Total $ 2,679 $ — $ 5,300 $ 7,979 $ 377,030 $ 385,009 The following table includes an aging analysis, based upon contractual terms, of the recorded investment of PCI loans as of December 31, 2017, included in the table above. 90 Days or 30-89 More Past Total Past (Dollars in thousands) Days Due and Due and Total December 31, 2017 Past Due Still Accruing Nonaccruals Nonaccruals Current Loans Mortgage Loans on Real Estate: Construction, Land and Land Development $ — $ — $ — $ — $ 1,405 $ 1,405 Commercial Mortgages (Non-Owner — — — — 171 171 Commercial Mortgages (Owner Occupied) 161 — — 161 160 321 Residential First Mortgages 349 141 — 490 3,320 3,810 Residential Revolving and Junior Mortgages — 20 — 20 29 49 Consumer loans — 4 — 4 65 69 Total $ 510 $ 165 $ 0 $ 675 $ 5,150 $ 5,825 |
Allowance for Loan Losses
Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2017 | |
Allowance for Loan Losses | Note 7. Allowance for Loan Losses A disaggregation of and an analysis of the change in the allowance for loan losses by segment is shown below. Mortgage Commercial Consumer Loans on and and other (Dollars in thousands) Real Estate Industrial Loans Total For the Twelve Months Ended December 31, 2017 Beginning Balance $ 3,318 $ 493 $ 52 $ 3,863 (Charge-offs) (577 ) (729 ) (171 ) (1,477 ) Recoveries 91 263 96 450 Provision (recovery) 1,032 851 3,051 4,934 Ending Balance $ 3,864 $ 878 $ 3,028 $ 7,770 Individually evaluated for impairment $ 861 $ 92 $ 141 $ 1,094 Collectively evaluated for impairment 3,003 786 2,887 6,676 Mortgage Commercial Consumer Loans on and and Other (Dollars in thousands) Real Estate Industrial Loans Total For the Twelve Months Ended December 31, 2016 Beginning Balance $ 3,502 $ 599 $ 122 $ 4,223 Reclassification of allowance related to sold loans — — (27 ) (27 ) (Charge-offs) (735 ) (158 ) (53 ) (946 ) Recoveries 254 61 11 326 Provision (recovery) 297 (9 ) (1 ) 287 Ending Balance $ 3,318 $ 493 $ 52 $ 3,863 Individually evaluated for impairment $ 803 $ 92 $ — $ 895 Collectively evaluated for impairment 2,515 401 52 2,968 As a result of the fair value adjustment made to a pool of consumer loans acquired in the merger with Virginia BanCorp, $696 thousand of charge-offs previously reported in the Consumer and Other Loans segment were reclassified against consumer loans. Refer to Note 2, Business Combination. Loan receivables evaluated for impairment individually and collectively by segment as of December 31, 2017 and 2016 are as follows: Mortgage Commercial Consumer Loans on and and Other (Dollars in thousands) Real Estate Industrial Loans Total As of December 31, 2017 Individually evaluated for impairment $ 8,874 $ 92 $ 141 $ 9,107 Collectively evaluated for impairment 595,007 114,001 42,356 751,364 Loans acquired with deteriorated credit quality 5,756 — 69 5,825 Total Gross Loans $ 609,637 $ 114,093 $ 42,566 $ 766,296 As of December 31, 2016 Individually evaluated for impairment $ 10,323 $ 92 $ — $ 10,415 Collectively evaluated for impairment 328,118 42,932 3,544 374,594 Total Gross Loans $ 338,441 $ 43,024 $ 3,544 $ 385,009 The following table presents the changes in the accretable yield for PCI loans (refer to Note 3) since acquisition on April 1, 2017 through December 31, 2017 (in thousands): December 31, Balance at acquisition, April 1, 2017 $ 1,354 Accretion (267 ) Reclassifications from nonaccretable balance, net — Other changes, net — Balance as of December 31, 2017 $ 1,087 As of December 31, 2017 there was no allowance on PCI loans. Internal risk rating grades are shown in the following table. Construction, Residential Commercial Commercial Land and Residential Revolving and Mortgages Mortgages Commercial (Dollars in thousands) Land First Junior (Non-Owner (Owner and Consumer As of December 31, 2017 Development Farmland Mortgages Mortgages Occupied) Occupied) Industrial Loans Total Grade: Pass $ 55,949 $ 923 $ 256,614 $ 43,659 $ 140,625 $ 67,732 $ 110,281 $ 12,431 $ 688,214 Watch 6,690 — 8,624 1,376 5,931 10,076 2,373 29,917 64,987 Special mention 172 — 205 — — — 1,347 — 1,724 Substandard 3,231 — 3,922 1,463 201 2,244 92 218 11,371 Doubtful — — — — — — — — — Total $ 66,042 $ 923 $ 269,365 $ 46,498 $ 146,757 $ 80,052 $ 114,093 $ 42,566 $ 766,296 Construction, Commercial Commercial Land and Mortgages Mortgages Commercial Land (Non-Owner (Owner and As of December 31, 2016 Development Farmland Occupied) Occupied) Industrial Total Grade: Pass $ 32,009 $ 1,023 $ 30,639 $ 31,191 $ 40,841 $ 135,703 Watch 5,795 — 4,184 6,652 1,891 18,522 Special mention 180 — 272 1,453 125 2,030 Substandard 1,834 — 248 2,529 167 4,778 Doubtful — — — — — — Total $ 39,818 $ 1,023 $ 35,343 $ 41,825 $ 43,024 $ 161,033 As of December 31, 2016, internal risk rating grades were generally assigned to commercial loans not secured by real estate, commercial mortgages, residential mortgages greater than $1 million, smaller residential mortgages which are impaired, loans to real estate developers and contractors, consumer loans greater than $250,000 with chronic delinquency, and TDRs, as shown in the following table (for December 31, 2016). The grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled. Risk grades (refer to Note 3) are evaluated as new information becomes available for each borrowing relationship. After completing the system conversion, the bank has adopted a new risk grading system over its entire loan portfolio. As of December 31, 2017, except for pooled consumer loans, the existing loan portfolio is risk graded using loan risk grading software that employs a variety of algorithms based on detailed account characteristics to include borrower’s payment history on a total relationship basis as well as loan to value exposure. For non-homogenous Prior to merger, the bank did not assign internal risk grades to smaller mortgage and smaller consumer loans. These loans were considered to be nonperforming when they are delinquent by 90 days or more or non-accruing Residential Residential Revolving As of December 31, 2016 First and Junior Consumer PAYMENT ACTIVITY STATUS Mortgages (1) Mortgages (2) Loans (3) Total Performing $ 191,852 $ 26,265 $ 3,544 $ 221,661 Nonperforming 2,155 160 — 2,315 Total $ 194,007 $ 26,425 $ 3,544 $ 223,976 Notes: (1) Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $3.3 million as of December 31, 2016. (2) Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $1.1 million as of December 31, 2016. (3) No Consumer Loans had been assigned a risk rating grade of Substandard as of December 31, 2016. The following tables show the Company’s recorded investment and the customers’ unpaid principal balances for impaired (Dollars in thousands) As of December 31, 2017 As of December 31, 2016 IMPAIRED LOANS Recorded Customers’ Unpaid Related Recorded Customers’ Unpaid Related Investment Principal Balance Allowance Investment Principal Balance Allowance With no related allowance: Construction, Land and Land Development $ 900 $ 1,378 $ — $ 1,531 $ 1,539 $ — Residential First Mortgages 1,488 1,488 — 2,112 2,176 — Residential Revolving and Junior Mortgages (1) 414 414 — 995 999 — Commercial Mortgages (Non-owner — — — 248 248 — Commercial Mortgages (Owner occupied) 1,721 1,971 — 1,860 2,178 — Commercial and Industrial — — — — — — Consumer—Other — — — — — — 4,523 5,251 — 6,746 7,140 — With an allowance recorded: Construction, Land and Land Development 550 621 137 243 286 145 Residential First Mortgages 1,914 1,914 367 1,951 1,951 367 Residential Revolving and Junior Mortgages (1) 1,340 1,340 162 544 546 199 Commercial Mortgages (Non-owner — — — — — — Commercial Mortgages (Owner occupied) 547 586 195 839 854 92 Commercial and Industrial 92 92 92 92 101 92 Consumer—Other 141 141 141 — — — 4,584 4,694 1,094 3,669 3,738 895 Total Impaired Loans: Construction, Land and Land Development 1,450 1,999 137 1,774 1,825 145 Residential First Mortgages 3,402 3,402 367 4,063 4,127 367 Residential Revolving and Junior Mortgages (1) 1,754 1,754 162 1,539 1,545 199 Commercial Mortgages (Non-owner — — — 248 248 — Commercial Mortgages (Owner occupied) 2,268 2,557 195 2,699 3,032 92 Commercial and Industrial 92 92 92 92 101 92 Consumer—Other 141 141 141 — — — $ 9,107 $ 9,945 $ 1,094 $ 10,415 $ 10,878 $ 895 Notes: (1) Junior mortgages include equity lines. For the Year Ended For the Year Ended December 31, 2017 December 31, 2016 Average Interest Average Interest Recorded Income Recorded Income (Dollars in thousands) Investment Recognized Investment Recognized With no related allowance: Construction, Land and Land Development $ 1,282 $ 66 $ 1,316 $ 55 Residential First Mortgages 1,449 21 1,956 14 Residential Revolving and Junior Mortgages (1) 417 5 808 38 Commercial Mortgages (Non-owner — — 251 15 Commercial Mortgages (Owner occupied) 1,800 32 1,858 27 Commercial and Industrial — — — — Consumer—Other — — — — 4,948 124 6,189 149 With an allowance recorded: Construction, Land and Land Development 572 4 253 5 Residential First Mortgages 1,932 93 1,956 90 Residential Revolving and Junior Mortgages (1) 1,360 44 218 9 Commercial Mortgages (Non-owner — — — — Commercial Mortgages (Owner occupied) 572 12 819 22 Commercial and Industrial 92 — 103 1 Consumer—Other 28 6 — — 4,556 159 3,349 127 Total Construction, Land and Land Development 1,854 70 1,569 60 Residential First Mortgages 3,381 114 3,912 104 Residential Revolving and Junior Mortgages (1) 1,777 49 1,026 47 Commercial Mortgages (Non-owner — — 251 15 Commercial Mortgages (Owner occupied) 2,372 44 2,677 49 Commercial and Industrial 92 — 103 1 Consumer—Other 28 6 — — $ 9,504 $ 283 $ 9,538 $ 276 Prior to the Bank’s core system conversion, which was completed during the fourth quarter of 2017, smaller non-accruing loans, and non-accruing loans that were not graded because they were included in homogenous pools, generally did not meet the criteria for impairment testing, and were therefore excluded from impaired loan disclosures. At December 31, 2016, non-accruing non-accruing Loans modified as TDRs are considered impaired and are individually evaluated for the amount of impairment in the ALL. The following table presents, by segments of loans, information related to loans modified as TDRs during the years ended December 31, 2017 and 2016. For the Year Ended For the Year Ended December 31, 2017 December 31, 2016 Pre-Modification Post-Modification Pre-Modification Post-Modification (Dollars in thousands) Outstanding Outstanding Outstanding Outstanding Number of Recorded Recorded Number of Recorded Recorded TROUBLED DEBT RESTRUCTURINGS Loans Investment Investment Loans Investment Investment Residential first mortages (1) 1 $ 820 $ 820 1 $ 244 $ 244 Consumer loan (1) 1 147 147 — — — Notes: (1) Modifications were an extention of the loan terms. For the Year Ended For the Year Ended December 31, 2017 December 31, 2016 TROUBLED DEBT RESTRUCTURINGS THAT SUBSEQUENTLY DEFAULTED Number of Recorded Number of Recorded Commerical mortgages (Owner occupied) 0 0 0 0 There were 18 TDRs with an aggregate balance of $4.1 million and 16 TDRs with an aggregate balance of $3.2 million outstanding as of December 31, 2017 and December 31, 2016, respectively. Of the total TDR’s, 11 TDRs with an aggregate balance of $2.6 million were non performing as of December 31, 2017 and 9 TDRs with an aggregate balance of $1.1 million were nonperforming as of December 31, 2016. |
Other Real Estate Owned, Net
Other Real Estate Owned, Net | 12 Months Ended |
Dec. 31, 2017 | |
Other Real Estate Owned, Net | Note 8. Other Real Estate Owned, Net Other real estate owned (“OREO”) is presented net of a valuation allowance for losses. An analysis of the valuation allowance on OREO is shown below. Years ended December 31, (Dollars in thousands) 2017 2016 Balance, beginning of year $ 473 $ 621 Provision for losses 245 53 Charge-offs (190 ) (201 ) Balance, end of period $ 528 $ 473 Expenses applicable to OREO include the following: Years ended December 31, (Dollars in thousands) 2017 2016 Net (gain) loss on sales of real estate $ (23 ) $ 74 Provision for losses 245 53 Operating expenses, net of income 138 93 Total expenses $ 360 $ 220 The following table details the properties included in OREO as of December 31, 2017 and December 31, 2016. There were no collateralized consumer residential mortgage loans in the process of foreclosure as of December 31, 2017. As of December 31, 2017 As of December 31, 2016 No. of Carrying No. of Carrying (Dollars in thousands) Properties Value Properties Value Residential 5 $ 443 2 $ 891 Land lots 20 3,223 7 547 Convenience store 1 55 1 59 Restaurant 1 36 1 55 Commerical properties 2 527 3 942 Total 29 $ 4,284 14 $ 2,494 Included in other assets as of December 31, 2017 and 2016, is one residential property purchased in 2013 from a related party with a value of $708 thousand and a former branch, which was closed April 30, 2015, with a value of $403 thousand. |
Premises and Equipment, net
Premises and Equipment, net | 12 Months Ended |
Dec. 31, 2017 | |
Premises and Equipment, net | Note 9. Premises and Equipment, net Components of premises and equipment included in the balance sheets at December 31, 2017 and 2016 were as follows: 2017 2016 (Dollars in thousands) Land and improvements $ 4,762 $ 2,350 Buildings and improvements 16,634 12,221 Furniture and equipment 9,126 10,323 Total cost 30,522 24,894 Less accumulated depreciation (12,656 ) (14,050 ) Premises and equipment, net $ 17,866 $ 10,844 Depreciation expense for the years ended December 31, 2017 and 2016 totaled $1.4 million and $1.1 million, respectively. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2017 | |
Deposits | Note 10. Deposits The aggregate amount of time deposits in denominations of $250,000 or more at December 31, 2017 and 2016 was $58.7 million and $19.2 million, respectively. At December 31, 2017, the scheduled maturities of time deposits are as follows (in thousands): 2018 $ 235,751 2019 30,986 2020 54,022 2021 25,991 2022 12,239 Thereafter — $ 358,989 At December 31, 2017 and 2016, overdraft demand deposits reclassified to loans totaled $80 thousand and $51 thousand, respectively. At December 31, 2017 and 2016, the Company had wholesale deposits of $1.0 million and $8.5 million, respectively. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Employee Benefit Plans | Note 11. Employee Benefit Plans The Company has a non-contributory, The Company sponsors a postretirement benefit plan covering current and future retirees who acquire age 55 and 10 years of service or age 65 and 5 years of service. The postretirement benefit plan provides coverage toward a retiree’s eligible medical and life insurance benefits expenses. The following tables provide the reconciliation of changes in the benefit obligations and fair value of assets and a statement of funded status for the pension plan and postretirement plan of the Company. Pension Benefits Postretirement Benefits (Dollars in thousands) 2017 2016 2017 2016 Change in benefit obligation Benefit obligation, beginning of year $ 3,398 $ 3,488 $ 540 $ 668 Service cost — — 22 22 Interest cost 121 134 21 28 Actuarial loss (gain) 323 17 (120 ) (170 ) Benefit payments (581 ) (279 ) (6 ) (8 ) Settlement loss 12 38 — — Benefit obligation, end of year 3,273 3,398 457 540 Change in plan assets Fair value of plan assets, beginning of year 2,690 2,806 — — Actual return on plan assets 356 163 — — Employer contributions — — 6 8 Benefits payments (581 ) (279 ) (6 ) (8 ) Fair value of plan assets, end of year 2,465 2,690 — — Funded status at the end of the year $ (808 ) $ (708 ) $ (457 ) $ (540 ) Amounts recognized in accumulated other comprehensive loss (income) Net loss (gain) $ 1,187 $ 1,316 $ (344 ) $ (234 ) Prior service cost — — — — Net obligation at transition — — — — Amount recognized $ 1,187 $ 1,316 $ (344 ) $ (234 ) Components of net periodic benefit cost (gain) Service cost $ — $ — $ 22 $ 22 Interest cost 121 134 21 28 Expected (return) on plan assets (167 ) (189 ) — — Amortization of prior service cost — — — — Amortization of net obligation at transition — — (11 ) — Recognized net loss due to settlement 195 90 — — Recognized net actuarial loss 81 77 — — Net periodic benefit (gain) cost 230 112 32 50 Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive (income) loss Net (gain) loss (130 ) (86 ) (109 ) (170 ) Amortization of prior service cost — — — — Amortization of net obligation at transition — — — — Total recognized in other comprehensive loss/(income) (130 ) (86 ) (109 ) (170 ) Total recognized in net periodic benefit cost and other comprehensive loss/(income) $ 100 $ 26 $ (77 ) $ (120 ) Weighted-average assumptions as of December 31: 2017 2016 2017 2016 Discount rate used for Net Periodic Pension Cost 4.00 % 4.25 % 4.00 % 4.25 % Discount Rate used for Disclosure 3.50 % 4.00 % 3.50 % 4.00 % Expected return on plan assets 7.25 % 7.50 % N/A N/A Rate of compensation increase N/A N/A N/A N/A Rate of compensation increase for net periodic pension cost N/A N/A N/A N/A Expected future interest crediting rate 3.00 % 3.00 % N/A N/A Estimated future benefit payments for the pension and postretirement plans are as follows (in thousands): Pension Postretirement 2018 $ 316 $ 6 2019 321 7 2020 265 7 2021 206 7 2022 195 6 2023 - 2027 1,417 28 Pension Plan . The pension plan sponsor selects the assumption for the expected long-term rate of return on assets in consultation with their investment advisors and actuary. This rate is intended to reflect the average rate of earnings expected to be earned on the funds invested or to be invested to provide plan benefits. Historical performance is reviewed, especially with respect to real rates of return (net of inflation), for the major asset classes held or anticipated to be held by the trust, and for the trust itself. Undue weight is not given to recent experience that may not continue over the measurement period, with higher significance placed on current forecasts of future long-term economic conditions. Because assets are held in a qualified trust, anticipated returns are not reduced for taxes. Further, solely for this purpose, the plan is assumed to continue in force and not terminate during the period during which assets are invested. However, consideration is given to the potential impact of current and future investment policy, cash flow into and out of the trust, and expenses (both investment and non-investment) The trust fund is sufficiently diversified to maintain a reasonable level of risk without imprudently sacrificing return, with a targeted asset allocation of 40% fixed income and 60% equities. The investment manager of the fund selects investment fund managers with demonstrated experience and expertise, and funds with demonstrated historical performance, for the implementation of the plan’s investment strategy. The investment manager will consider both actively and passively managed investment strategies and will allocate funds across the asset classes to develop an efficient investment structure. It is the responsibility of the trustee to administer the investments of the trust within reasonable costs, being careful to avoid sacrificing quality. These costs include, but are not limited to, management and custodial fees, consulting fees, transaction costs and other administrative costs chargeable to the trust. The Company expects to make no contributions to its pension plan for the 2018 plan year. Postretirement benefits plan. 401(k) retirement plan. During 2017, substantially all employees were eligible to participate in one of the Company’s 401(k) retirement plan beginning the first of the month following their hire date. New employees and employees of the surviving company were eligible to participate in the Surviving Plan. New employees were eligible for participation the month following their hire date, and the Company matched 100% of the first 3% and 50% of the next 3% of all participants’ contributions. Additional contributions can be made at the discretion of the Company’s Board of Directors. Contributions to the Surviving Plan amounted to $277 thousand and $193 thousand for the years ended December 31, 2017 and 2016, respectively. Employees of former Virginia Commonwealth Bank were eligible to participate in the Acquired Plan during 2017. At the discretion of the Board of Directors on an annual basis, the Company matched 100% of participant contributions to the Acquired Plan up to 4% of earned compensation, and this match was deposited into each participant’s account. Such matching contributions by the Company were subject to a vesting schedule whereby participants must have been credited with at least 1,000 hours of service for the plan year. See Note 18 for details on Company contributions to the ESOP. |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments with Off-Balance Sheet Risk | Note 12. Financial Instruments with Off-Balance In the normal course of business, the Company offers various financial products to its customers to meet their credit and liquidity needs. These instruments involve elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit and standby letters of credit written is represented by the contractual amount of these instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance Subject to its normal credit standards and risk monitoring procedures, the Company makes contractual commitments to extend credit. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments may expire without being completely drawn upon, the total commitment amounts do not necessarily represent future cash requirements. At December 31, 2017 and 2016, the Company had outstanding loan commitments approximating $144.2 million and $38.2 million, respectively. Conditional commitments are issued by the Company in the form of performance stand-by stand-by |
Restrictions on Cash and Due fr
Restrictions on Cash and Due from Banks | 12 Months Ended |
Dec. 31, 2017 | |
Restrictions on Cash and Due from Banks | Note 13. Restrictions on Cash and Due from Banks The Board of Governors of the Federal Reserve System (the “Federal Reserve”) requires banks to maintain cash reserves against certain categories of deposit liabilities. The aggregate amount of daily average required reserves for the final weekly reporting period of 2017 was $13.5 million and $25 thousand for the similar final period of 2016. |
Other Borrowings
Other Borrowings | 12 Months Ended |
Dec. 31, 2017 | |
Other Borrowings | Note 14. Other Borrowings Securities sold under repurchase agreements were $9.5 million and $18.3 million as of December 31, 2017 and December 31, 2016, respectively, and included in liabilities on the consolidated balance sheets. Securities sold under agreements to repurchase are secured transactions with customers, generally mature the day following the day sold and can be changed at the option of the Bank with minimal risk of loss due to fair value. During 2017 and 2016, the average rates of the repurchase agreements were 0.17% and 0.16%, respectively. Unused lines of credit with nonaffiliated banks, excluding FHLB, totaled $24.5 million and $21.5 million at December 31, 2017 and 2016, respectively. Draws upon these lines have time limits varying from two to four consecutive weeks. The banks providing these lines can change the interest rates on these lines daily. The lines renew annually and are tested periodically each year. The table below presents selected information on short-term borrowings: As of December 31, 2017 2016 (Dollars in Thousands) Balance outstanding at period-end $ 9,498 $ 18,310 Maximum balance at any month end during the year $ 17,091 $ 18,310 Average balance for the period $ 11,001 $ 9,299 Weighted average rate for the period 0.17 % 0.16 % Weighted average rate on borrowings at period end 0.21 % 0.13 % Estimated fair value at year end $ 9,498 $ 18,310 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt | Note 15. Debt As of December 31, 2017 and December 31, 2016, the Bank had $70.0 million and $35.0 million of outstanding FHLB debt, respectively, consisting of two and five advances, respectively. Three advances for $5.0 million each that matured in January 2017, June 2017, and September 2017 were repaid as well as one advance for $10.0 million that matured in February 2017 were combined together and rolled over into a $60.0 million fixed rate advance (shown below). The $60.0 million advance that matured in January 2018 was replaced with a $60.0 million fixed rate advance with an interest rate of 1.42% maturing in February of 2018. Subsequently, the $60.0 million advance that matured on February 2, 2018, was replaced with a $60.0 million fixed rate advance with an interest rate of 1.44% maturing on March 5, 2018. On March 5, 2018, the $60.0 million advance matured and was substantially replaced with a $50 million fixed rate advance with an interest rate of 1.63% maturing on April 2, 2018. The two advances are shown in the following table. Description Balance Originated Interest Rate Date Adjustable Rate Hybrid $ 10,000,000 4/12/2013 3.25750 % 4/13/2020 Fixed Rate Credit 60,000,000 12/1/2017 1.34000 % 1/2/2018 $ 70,000,000 1.68000 % Advances on the FHLB lines are secured by a blanket lien on qualified 1 to 4 family residential real estate loans. Immediate available credit, as of December 31, 2017, was $162.8 million against a total line of credit of $238.8 million. As of December 31, 2017 and December 31, 2016, the Company had $70.0 million and $35.0 million, respectively, in FHLB debt outstanding with a weighted average interest rate of 1.68% and 1.49%, respectively. Subordinated Debt On May 28, 2015, the Company entered into a Purchase Agreement with 29 accredited investors under which the Company issued an aggregate of $7.0 million of subordinated notes (the “Notes”) to the accredited investors. The Notes have a maturity date of May 28, 2025. The Notes bear interest, payable on the 1st of March and September of each year, commencing September 1, 2015, at a fixed interest rate of 6.50% per year. The Notes are not convertible into common stock or preferred stock, and are not callable by the holders. The Company has the right to redeem the Notes, in whole or in part, without premium or penalty, at any interest payment date on or after May 28, 2020 and prior to the maturity date, but in all cases in a principal amount with integral multiples of $1,000, plus interest accrued and unpaid through the date of redemption. If an event of default occurs, such as the bankruptcy of the Company, the holder of a Note may declare the principal amount of the Note to be due and immediately payable. The Notes are unsecured, subordinated obligations of the Company and will rank junior in right of payment to the Company’s existing and future senior indebtedness. The Notes qualify as Tier 2 capital for regulatory reporting. (Dollars in thousands) Balance as of Balance as of 6.5% Subordinated Debt $ 7,000 $ 7,000 Less: Issuance costs (123 ) (140 ) $ 6,877 $ 6,860 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes | Note 16. Income Taxes The Company files income tax returns in the U.S. federal jurisdiction and the Commonwealth of Virginia. The Commonwealth of Virginia does not charge an income tax for regulated banking institutions. The Tax Reform Act enacted in December 2017 reduced the federal corporate marginal income tax rate from 34% to 21% effective January 1, 2018. As a result of the Tax Reform Act, the Company recognized a provisional $1.3 million reduction in the value of net deferred tax assets, which was recorded as additional income tax expense in the fourth quarter of 2017 and which increased significantly the effective tax rate for the year ended December 31, 2017. This amount will be final with preparation of the 2017 tax return. The expense (benefit) for income taxes consisted of the following (in thousands): Year ended December 31, 2017 2016 Current $ 362 $ 1,054 Deferred 435 (88 ) $ 797 $ 966 The reasons for the differences between the statutory Federal income tax rates and the effective tax rates are summarized as follows: 2017 2016 Statutory rate 34.0 % 34.0 % Increase (decrease) resulting from: Tax exempt interest 51.1 % -6.1 % Bank owned life insurance 33.9 % -2.7 % Merger costs -15.0 % 2.5 % The Tax Act -283.1 % 0.0 % Other, net 11.4 % -0.1 % -167.8 % 27.6 % Temporary timing differences between the amounts reported in the financial statements and the tax bases of assets and liabilities result in deferred taxes. Management believes it is more likely than not that all of the deferred tax assets will be realized. The components of the net deferred tax assets and liabilities included in other assets, using federal corporate tax rates of 21% as of December 31, 2017 and 34% as of December 31, 2016, are as follows (in thousands): December 31, 2017 2016 Deferred tax assets Allowance for loan losses $ 1,632 $ 908 Interest on non-accrual 58 130 Other real estate 433 446 Pension plan 170 242 Postretirement benefits 96 184 Unrealized losses (gains) on available-for-sale 130 268 Deferred compensation 189 191 Stock-based compensation 26 30 Alternative Minimum Tax Credit 134 — Net discount on loan portfolios acquired in merger with Virginia Bancorp 1,576 — Premium on time deposits acquired in merger with Virginia Bancorp 89 — Other 212 27 Total deferred tax assets 4,745 2,426 Deferred tax liabilities Depreciation (69 ) (126 ) Amortization of goodwill (1,218 ) (955 ) Net deferred loan fees and costs 65 (133 ) Premium on fixed assets acquired in merger with Virginia Bancorp (561 ) — Recapture of bad debts experience reserve (229 ) — Other (391 ) (58 ) Total deferred tax liabilities (2,403 ) (1,272 ) Net deferred tax assets $ 2,342 $ 1,154 The Company had investments in three separate housing equity funds at December 31, 2017. The general purpose of these funds is to encourage and assist participants in investing in low-income low-income |
Regulatory Requirements and Res
Regulatory Requirements and Restrictions | 12 Months Ended |
Dec. 31, 2017 | |
Regulatory Requirements and Restrictions | Note 17. Regulatory Requirements and Restrictions The Company (on a consolidated basis) and Bank are subject to various regulatory capital requirements administered by the Commonwealth of Virginia and Federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company and Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance-sheet Quantitative measures established by regulation to ensure capital adequacy required the Company and the Bank during 2017 to maintain minimum amounts and ratios (set forth in the table below) of total common equity Tier 1 and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined). Management believes that as of December 31, 2017 and 2016, the Company and the Bank met all capital adequacy requirements to which they were subject. As of December 31, 2017, the most recent notification from the Federal Reserve categorized the Bank as well capitalized under the framework for prompt corrective action. To be categorized as well capitalized on such date, an institution must maintain minimum total risk-based, common equity Tier 1 risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the Bank’s category. In July 2013, the Federal Reserve issued final rules that made technical changes to its capital rules to align them with the Basel III regulatory capital framework and meet certain requirements of the Dodd-Frank Act. Effective January 1, 2015, the final rules require the Bank to comply with the following minimum capital ratios: (i) a new Common Equity Tier 1 capital ratio of 4.5% of risk-weighted assets; (ii) a Tier 1 capital ratio of 6.0% of risk-weighted assets (increased from the prior requirement of 4.0%); (iii) a total capital ratio of 8.0% of risk-weighted assets (unchanged from the prior requirement); and (iv) a leverage ratio of 4.0% of total assets (unchanged from the prior requirement). The following additional capital requirements related to the capital conservation buffer will be phased in over a four year period which began on January 1, 2016. When fully phased in on January 1, 2019, the rules will require the Bank to maintain (i) a minimum ratio of Common Equity Tier 1 to risk-weighted assets of at least 4.5%, plus a 2.5% “capital conservation buffer” (which is added to the 4.5% Common Equity Tier 1 ratio as that buffer is phased in, effectively resulting in a minimum ratio of Common Equity Tier 1 to risk-weighted assets of at least 7.0% upon full implementation), (ii) a minimum ratio of Tier 1 capital to risk-weighted assets of at least 6.0%, plus the 2.5% capital conservation buffer (which is added to the 6.0% Tier 1 capital ratio as that buffer is phased in, effectively resulting in a minimum Tier 1 capital ratio of 8.5% upon full implementation), (iii) a minimum ratio of total capital to risk-weighted assets of at least 8.0%, plus the 2.5% capital conservation buffer (which is added to the 8.0% total capital ratio as that buffer is phased in, effectively resulting in a minimum total capital ratio of 10.5% upon full implementation), and (iv) a minimum leverage ratio of 4.0%, calculated as the ratio of Tier 1 capital to average assets. The capital conservation buffer requirement will be phased in as of January 1, 2016, at 0.625% of risk-weighted assets, increasing by the same amount each year until fully implemented at 2.5% on January 1, 2019. The capital conservation buffer is designed to absorb losses during periods of economic stress. Banking institutions with a ratio of Common Equity Tier 1 to risk-weighted assets above the minimum but below the conservation buffer will face constraints on dividends, equity repurchases and compensation based on the amount of the shortfall. The Company’s and the Bank’s actual capital amounts and ratios as of December 31, 2017 and December 31, 2016, are presented in the following tables: Actual Minimum Minimum (Dollars in Thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2017: Total Risk Based Capital (to Risk Weighted Assets) Consolidated $ 120,091 16.24 % $ 59,150 8.00 % N/A N/A Virginia Commonwealth Bank 93,540 12.70 % 58,914 8.00 % $ 73,642 10.0 % Tier 1 Capital (to Risk Weighted Assets) Consolidated 105,444 14.26 % 44,363 6.00 % N/A N/A Virginia Commonwealth Bank 85,770 11.65 % 44,185 6.00 % $ 58,914 8.0 % Common Equity Tier 1 Capital (to Risk Weighted Assets) Consolidated 105,444 14.26 % 33,272 4.50 % N/A N/A Virginia Commonwealth Bank 85,770 11.65 % 33,139 4.50 % $ 47,868 6.5 % Tier 1 Capital (to Average Assets) Consolidated 105,444 10.99 % 38,382 4.00 % N/A N/A Virginia Commonwealth Bank 85,770 8.97 % 38,259 4.00 % $ 47,824 5.0 % Actual Minimum Minimum (Dollars in Thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2016: Total Risk Based Capital (to Risk Weighted Assets) Consolidated $ 51,810 15.02 % $ 27,600 8.00 % N/A N/A Bank of Lancaster 46,977 13.69 % 27,460 8.00 % $ 34,325 10.0 % Tier 1 Capital (to Risk Weighted Assets) Consolidated 41,087 11.91 % 20,700 6.00 % N/A N/A Bank of Lancaster 43,114 12.56 % 20,595 6.00 % $ 27,460 8.0 % Common Equity Tier 1 Capital (to Risk Weighted Assets) Consolidated 41,087 11.91 % 15,525 4.50 % N/A N/A Bank of Lancaster 43,114 12.56 % 15,446 4.50 % $ 22,311 6.5 % Tier 1 Capital (to Average Assets) Consolidated 41,087 8.66 % 18,967 4.00 % N/A N/A Bank of Lancaster 43,114 9.18 % 18,793 4.00 % $ 23,491 5.0 % Bank Dividends One source of funds available to the Company is the payment of dividends by the Bank. Banking regulations limit the amount of dividends that may be paid without prior approval from the Bank’s regulators. |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 12 Months Ended |
Dec. 31, 2017 | |
Employee Stock Ownership Plan | Note 18. Employee Stock Ownership Plan During 2017, the Company had two Employee Stock Ownership Plans. The first plan is a noncontributory Employee Stock Ownership Plan (“Surviving ESOP”) for the benefit of all eligible employees who became eligible prior to and after the merger with Virginia BanCorp on April 1, 2017. Employees who have completed twelve months of service and who have attained the age of 21 years are eligible. Contributions to the plan are at the discretion of the Company’s Board of Directors. Contributions are allocated proportionately based on the covered compensation of each participant compared to the aggregate covered compensation of all participants for the plan year. Allocations are limited to 25% of eligible participant compensation. Participant accounts are 30% vested after two years, 40% vested after three years with vesting increasing 20% each year thereafter, until 100% vested. The Surviving ESOP had 112,847 allocated shares as of December 31, 2017. Contributions to the plan were $75 thousand and $67 thousand in 2017 and 2016, respectively. Dividends received on the Company’s stock held by the Surviving ESOP totaled $14 thousand in 2017 and $0 in 2016. Shares held by the Surviving ESOP are considered outstanding for purposes of computing earnings per share. As a result of the merger with Virginia BanCorp on April 1, 2017, the Company has a second ESOP (“Acquired ESOP”), which was available to eligible employees of former Virginia Commonwealth Bank. The Acquired ESOP was a non-contributory As of December 31, 2017, the Acquired ESOP has five outstanding loans totaling $1.1 million, with 164,835 unearned shares pledged to those loans and 508,380 shares allocated to employee accounts. The fair value of shares not allocated to participants’ accounts was $1.7 million at December 31, 2017. During 2017, safe harbor contributions to the Acquired ESOP totaled $72 thousand, matching contributions totaled $76 thousand, and dividends received totaled $87 thousand. Expense related to shares committed to be released from loans totaled $133 thousand. The Surviving Plan was amended and restated effective January 1, 2018, and the Acquired Plan was merged into the Surviving Plan (now, the “Combined ESOP”). Participants of either prior plan on January 1, 2018 shall continue to be a participant in the Combined ESOP. Otherwise, each eligible employee shall become a participant as of the first January 1 st st |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2017 | |
Stock-Based Compensation Plans | Note 19. Stock-Based Compensation Plans On June 28, 2013, the Company registered a new stock-based compensation plan with the Securities and Exchange Commission, which suspended all other plans. There are 219,210 shares available for grant under this plan at December 31, 2017. Unissued shares are generally used for exercises of stock options and restricted stock grants. Stock-based compensation expense related to stock awards during 2017 and 2016 was $199 thousand and $60 thousand, respectively. There was no unrecognized compensation expense related to stock options as of December 31, 2017. During 2017 there were issued 4 separate grants with a total of 86,790 options which were immediately vested compared to 29,500 options granted and vested during 2016. Compensation expense for stock options is the estimated fair value of options granted using the Black-Scholes Model amortized on a straight-line basis over the vesting period of the award. The expected volatility is based on historical volatility of the Company’s stock price. The risk-free interest rates for the periods within the contractual life of the awards are based on the U.S. Treasury yield curve in effect at the time of the grant. The expected life is based on historical exercise experience. The dividend yield assumption is based on the Company’s history and expectation of dividend payouts. The fair value of options granted during 2017 were $1.93, $1.73, $1.50 and $1.50. The fair value of options granted during 2016 was $2.14 and $2.00. The variables used in these calculations of the fair value of the options are as follows: For the twelve months ended December 31, 2017 2016 Risk free interest rate (5 year Treasury) 2.10% 1.94% Expected dividend yield 1% 0% Expected term (years) 5 5 Expected volatility 16.1%-21.7% 24.5%-40.1% Stock option plan activity for 2017 and 2016 is summarized below: Weighted Average Weighted Average Remaining Aggregate Shares Exercise Contractual Life Intrinsic Options outstanding, January 1, 2016 211,185 $ 6.57 6.0 Granted 29,500 7.24 Forfeited (13,787 ) 5.90 Exercised 0 0 Expired (8,598 ) 12.84 Options outstanding, December 31, 2016 218,300 $ 6.35 6.0 $ 378,288 Granted 86,790 10.08 Forfeited (1,195 ) 8.43 Exercised (43,244 ) 5.85 Expired (9,625 ) 13.76 Options outstanding, December 31, 2017 251,026 $ 7.43 6.73 $ 753,229 Options exercisable, December 31, 2017 251,026 $ 7.43 6.73 $ 753,229 (1) The aggregate intrinsic value of a stock option in the table above represents the total pre-tax |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings per Share | Note 20. Earnings per Share The following table shows the weighted average number of shares used in computing earnings per share and the effect on the weighted average number of shares of dilutive potential common stock. December 31, 2017 December 31, 2016 Average Per share Average Per share Basic earnings per share 9,399,223 $ (0.14 ) 4,774,856 $ 0.53 Effect of dilutive securities: Stock options — 25,090 Diluted earnings per share 9,399,223 $ (0.14 ) 4,799,946 $ 0.53 For the year ended 2017, options on 251,026 shares and 10,500 restricted shares were not included in computing diluted earnings per share because their effects were anti-dilutive. For the year ended 2016, options on 62,541 shares were not included in computing diluted earnings per share because their effects were anti-dilutive. |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2017 | |
Related Parties | Note 21. Related Parties The Company has entered into transactions with its directors and principal officers of the Company, their immediate families and affiliated companies in which they are the principal stockholders (related parties). The aggregate amount of loans to such related parties was $7.4 million and $8.9 million at December 31, 2017 and 2016, respectively. All such loans, in the opinion of management, were made in the normal course of business on the same terms, including interest rate, collectability and collateral, as those prevailing at the time for comparable transactions. (Dollars in thousands Balance, January 1, 2017 $ 8,863 New loans and extensions to existing loans 25 Repayments and other reductions (1,534 ) Balance, December 31, 2017 $ 7,354 Unfunded commitments to extend credit to related parties were $3.7 million and $2.0 million at December 31, 2017 and 2016, respectively. The Company maintains deposit accounts with some related parties. The aggregate amount of these deposit accounts at December 31, 2017 and 2016 amounted to $1.4 million and $696 thousand, respectively. On May 28, 2015, the Company issued $7.0 million of 6.50% subordinated debt. Related parties purchased and held principal note amounts of $285 thousand. As of December 31, 2017, the Company owed these related parties $291.0 thousand in principal and accrued interest with regard to the subordinated debt. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Measurements | Note 22. Fair Value Measurements The Company uses fair value to record certain assets and liabilities and to determine fair value disclosures. Authoritative accounting guidance clarifies that fair value of certain assets and liabilities is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Authoritative accounting guidance specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. The three levels of the fair value hierarchy based on these two types of inputs are as follows: Level 1 – Valuation is based on quoted prices in active markets for identical assets and liabilities. Level 2 – Valuation is based on observable inputs including quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets and liabilities in less active markets, and model-based valuation techniques for which significant assumptions can be derived primarily from or corroborated by observable data in the market. Level 3 – Valuation is based on model-based techniques that use one or more significant inputs or assumptions that are unobservable in the market. The following describes the valuation techniques used by the Company to measure certain financial assets and liabilities recorded at fair value on a recurring basis in the financial statements: Securities available-for-sale available-for-sale available-for-sale. During the fourth quarter of 2016, management determined that the methodology used to determine the fair value of certain U.S. government securities as a group instead of individually was considered Level 2 fair value measurement, therefore approximately $1.6 million of Level 1 securities were moved to Level 2. During the fourth quarter of 2016, $1.5 million of corporate bonds were transferred from Level 2 to Level 3 due to the passage of time from the trade date and reliance upon non-binding Defined benefit plan assets Mortgage servicing rights The MSR for the portfolio serviced for FNMA is recorded at fair value on a recurring basis, with changes in fair value recorded in the results of operations. A model is used to determine fair value, which establishes pools of performing loans, calculates cash flows for each pool and applies a discount rate to each pool. Loans are segregated into 14 pools based on each loan’s term and seasoning (age). All loans have fixed interest rates. Cash flows are then estimated by utilizing assumed service costs and prepayment speeds. Monthly service costs were assumed to be $6.50 per loan as of December 31, 2017 and $6.00 per loan as of December 31, 2016. Prepayment speeds are determined primarily based on the average interest rate of the loans in each pool. The prepayment scale used is the Public Securities Association (“PSA”) model, where “100% PSA” means prepayments are zero in the first month, then increase by 0.2% of the loan balance each month until reaching 6.0% in month 30. Thereafter, the 100% PSA model assumes an annual prepayment of 6.0% of the remaining loan balance. The average PSA speed assumption in the fair value model is 150% as of December 31, 2017 and December 31, 2016. A discount rate of 13.0% was then applied to each pool as of December 31, 2017 and 14.0% as of December 31, 2016. This discount rate is intended to represent the estimated market yield for the highest quality grade of comparable servicing. This MSR is classified as Level 3. Similarly, the MSR for the portfolio serviced for FHLMC is recorded at fair value on a recurring basis, with changes in fair value recorded in the results of operations. This MSR was acquired by the Bank as part of the merger with Virginia BanCorp effective April 1, 2017. A model is used to determine fair value, which establishes pools of performing loans, calculates cash flows for each pool and applies a discount rate to each. Loans are segregated into five pools based on each loan’s term and coupon strata. All loans have fixed interest rates. Cash flows are then estimated by utilizing assumed service costs and prepayment speeds. Monthly service costs were assumed to be $8.16 per loan as of December 31, 2017. Prepayment speeds are determined primarily based on the average interest rate and seasoning of the loans in each pool. The prepayment scale used is the PSA model as described above. The average PSA speed assumption in the fair value model is 192.4% as of December 31, 2017. The PSA speeds are converted to a constant prepayment rate (“CPR”) and then adjusted by applying betas to reflect the prepayment speeds of the portfolio based on historical payment behavior. As of December 31, 2017, an average CPR of 7.51% was applied based on the prior three years of history. An average discount rate of 3.6% was applied to each pool. This rate is intended to represent the estimated market yield for the highest quality grade of comparable servicing. This MSR is classified as Level 3. The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2017 and December 31, 2016: (Dollars in thousands) Fair Value Measurements at December 31, 2017 Using Description Balance Level 1 Level 2 Level 3 Securities available-for-sale: Corporate bonds $ 6,717 $ — $ — $ 6,717 U. S. Government agencies and mortgage backed securities 49,283 — 49,283 — State and municipal obligations 21,153 — 21,153 — Total securities available-for-sale: $ 77,153 $ — $ 70,436 $ 6,717 Mortgage servicing rights $ 999 $ — $ — $ 999 Defined benefit plan assets: Mutual funds - fixed income 994 994 — — Mutual funds - equity 1,471 1,471 — — Total defined benefit plan assets $ 2,465 $ 2,465 $ — $ — Fair Value Measurements at December 31, 2016 Using Description Balance Level 1 Level 2 Level 3 Securities available-for-sale: Corporate bonds $ 7,704 $ — $ — $ 7,704 U. S. Government agencies 25,313 — 25,313 — State and municipal obligations 18,156 — 18,156 — Total securities available-for-sale: $ 51,173 $ — $ 43,469 $ 7,704 Mortgage servicing rights $ 671 $ — $ — $ 671 Defined benefit plan assets: Mutual funds - fixed income $ 1,041 $ 1,041 $ — $ — Mutual funds - equity 1,649 1,649 — — Total defined benefit plan assets $ 2,690 $ 2,690 $ — $ — The reconciliation of items using Level 3 inputs is as follows: (Dollars in thousands) MSRs Corporate Balance, January 1, 2017 $ 671 $ 7,704 Purchases — — Acquired in merger 324 — Impairments — — Fair value adjustments 4 13 Sales — (1,000 ) Balance, December 31, 2017 $ 999 $ 6,717 (Dollars in thousands) MSRs Corporate Balance, January 1, 2016 $ 658 $ 3,945 Purchases — 3,750 Impairments — — Fair value adjustments 13 9 Sales — — Balance, December 31, 2016 $ 671 $ 7,704 Certain assets are measured at fair value on a nonrecurring basis in accordance with GAAP. Adjustments to the fair value of these assets usually result from the application of lower-of-cost-or-market The following describes the valuation techniques used by the Company to measure certain assets recorded at fair value on a nonrecurring basis in the financial statements: Impaired Loans: Other Real Estate Owned: The following table summarizes the Company’s assets that were measured at fair value on a nonrecurring basis at the end of the respective period. Fair Value Measurements at (Dollars in thousands) Balance as of Description December 31, 2017 Level 1 Level 2 Level 3 Impaired Loans, net $ 3,491 $ — $ — $ 3,491 Other real estate owned, net 4,284 — — 4,284 Fair Value Measurements at Balance as of Description December 31, 2016 Level 1 Level 2 Level 3 Impaired Loans, net $ 2,774 $ — $ — $ 2,774 Other real estate owned, net 2,494 — — 2,494 The following table displays quantitative information about Level 3 Fair Value Measurements as of December 31, 2017: (Dollars in thousands) Balance as of Valuation Technique Unobservable Input Range (Weighted Impaired Loans, net $ 3,491 Discounted appraised value Selling Cost 6% - 20% (16%) Lack of Marketability 50% - 90% (65%) Other real estate owned, net 4,284 Discounted appraised value Selling Cost 3% - 13% (8%) Lack of Marketability 10% - 100% (16%) The following table displays quantitative information about Level 3 Fair Value Measurements as of December 31, 2016: (Dollars in thousands) Balance as of Valuation Technique Unobservable Input Range (Weighted Impaired Loans, net $ 2,774 Discounted appraised value Selling Cost 10% - 20% (16%) Lack of Marketability 50% (50%) Other real estate owned, net 2,494 Discounted appraised value Selling Cost 3% - 13% (5%) Lack of Marketability 10% - 20% (11%) The estimated fair values of financial instruments are shown in the following table. The carrying amounts in the table are included in the balance sheet under the applicable captions. Fair Value Measurements at December 31, 2017 Using (Dollars in thousands) Balance as of Fair Value as of Description December 31, 2017 December 31, 2017 Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 9,396 $ 9,396 $ 9,396 $ — $ — Interest-bearing deposits 41,971 41,971 41,971 — — Certificates of deposit 3,224 3,224 — 3,224 — Federal funds sold 6,961 6,961 6,961 — — Securities available-for-sale 77,153 77,153 — 70,436 6,717 Restricted securities 5,787 5,787 — — 5,787 Loans, net 758,726 774,099 — — 774,099 Loans held for sale 1,651 1,651 — — 1,651 Accrued interest receivable 3,194 3,194 — 3,194 — Mortgage servicing rights 999 999 — — 999 Financial Liabilities: Non-interest-bearing $ 103,037 $ 103,037 $ 103,037 $ — $ — Savings and other interest-bearing deposits 299,820 299,820 — 299,820 — Time deposits 358,989 356,450 — — 356,450 Securities sold under repurchase agreements 9,498 9,498 — 9,498 — FHLB advances 70,000 70,486 — 70,486 — Subordinated debt 6,877 7,000 — — 7,000 Accrued interest payable 318 318 — 318 — Fair Value Measurements at December 31, 2017 Using (Dollars in thousands) Balance as of Fair Value as of Description December 31, 2016 December 31, 2016 Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 4,851 $ 4,851 $ 4,851 $ — $ — Interest-bearing deposits 7,501 7,501 7,501 — — Certificates of deposit 4,216 4,216 — 4,216 — Federal funds sold 2,350 2,350 2,350 — — Securities available-for-sale 51,173 51,173 — 43,469 7,704 Restricted securities 2,649 2,649 — — 2,649 Loans, net 381,537 384,468 — — 384,468 Loans held for sale 276 276 — — 276 Accrued interest receivable 1,372 1,372 — 1,372 — Mortgage servicing rights 671 671 — — 671 Financial Liabilities: Non-interest-bearing $ 74,799 $ 74,799 $ 74,799 $ — $ — Savings and other interest-bearing deposits 178,869 178,869 — 178,869 — Time deposits 128,050 127,497 — — 127,497 Securities sold under repurchase agreements 18,310 18,310 — 18,310 — FHLB advances 35,000 35,668 — 35,668 — Subordinated debt 6,860 7,000 — — 7,000 Accrued interest payable 331 331 — 331 — The carrying amounts of cash and due from banks, interest-bearing deposits, federal funds sold or purchased, accrued interest receivable, loans held for sale and non-interest-bearing Securities available-for-sale The carrying value of restricted securities approximates fair value based on the redemption provisions of the issuer. MSRs are carried at fair value. As described above, a valuation model is used to determine fair value. This model utilizes a discounted cash flow analysis with servicing costs and prepayment assumptions based on comparable instruments and a discount rate. The fair value of performing loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar remaining maturities. This calculation ignores loan fees and certain factors affecting the interest rates charged on various loans such as the borrower’s creditworthiness and compensating balances and dissimilar types of real estate held as collateral. The fair value of impaired loans is measured as described within the Impaired Loans section of this note. The fair value of loans does not consider the lack of liquidity and uncertainty in the market that would affect the valuation. Time deposits are presented at estimated fair value by discounting the future cash flows using interest rates offered for deposits of similar remaining maturities. The fair value of the Company’s subordinated debt is estimated by utilizing observable market prices for comparable securities. Qualitative factors like asset quality, market factors and liquidity are also considered. The fair value of the FHLB advances is estimated by discounting the future cash flows using the current interest rates offered for similar advances and remaining maturities. The fair value of commitments to extend credit is estimated using the fees currently charged to enter similar agreements, taking into account the remaining terms of the agreements and the present credit worthiness of the counter parties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of standby letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligations with the counter parties at the reporting date. At December 31, 2017 and December 31, 2016, the fair value of loan commitments and standby letters of credit was immaterial and therefore, they are not included in the table above. The Company assumes interest rate risk (the risk that general interest rate levels will change) as a result of its normal operations. As a result, the fair value of the Company’s financial instruments will change when interest rate levels change and that change may be either favorable or unfavorable to the Company. Management attempts to match maturities of assets and liabilities to the extent believed necessary to minimize interest rate risk. However, borrowers with fixed rate obligations are less likely to prepay in a rising rate environment. Conversely, depositors who are receiving fixed rates are more likely to withdraw funds before maturity in a rising rate environment and less likely to do so in a falling rate environment. Management monitors rates and maturities of assets and liabilities and attempts to minimize interest rate risk by adjusting terms of new loans and deposits and by investing in securities with terms that mitigate the Company’s overall interest rate risk. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2017 | |
Leases | Note 23. Leases The Company has long-term leases for three retail branches and office equipment. Lease expense for 2017 and 2016 was $377 thousand and $179 thousand, respectively. Pursuant to the terms of these leases, the following is a schedule, by year, of future minimum lease payments required under the long-term non-cancelable 2018 341 2019 270 2020 262 2021 270 2022 160 1,303 |
Condensed Financial Information
Condensed Financial Information of Parent Company | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company | Note 24. Condensed Financial Information of Parent Company Financial information pertaining only to Bay Banks of Virginia, Inc. is as follows: Condensed Balance Sheets December 31, 2017 December 31, 2016 Assets Cash and due from non-affiliated $ 24,475 $ 990 Interest-bearing deposits 609 168 Certificates of deposit — 1,240 Investments in subsidiaries 96,539 45,510 Other assets 2,002 1,680 Total assets $ 123,625 $ 49,588 Liabilities and Shareholders’ Equity Liabilities Subordinated debt $ 6,877 $ 6,860 Deferred directors’ compensation 901 561 Other borrowings 1,129 — Other liabilities 162 462 Total liabilities 9,069 7,883 Total shareholders’ equity 114,556 41,705 Total liabilities and shareholders’ equity $ 123,625 $ 49,588 (Dollars in thousands) Condensed Statements of Operations Years ended December 31, 2017 2016 Interest income $ 2 $ 17 Interest expense 481 472 Net interest expense (479 ) (455 ) Non-interest 857 678 Non-interest 1,752 1,261 Loss before income taxes and equity in undistributed earnings of subsidiaries (1,374 ) (1,038 ) Income tax benefit (340 ) (194 ) Loss before equity in undistributed earnings of subsidiaries (1,034 ) (844 ) Equity in undistributed earnings of subsidiaries (238 ) 3,379 Net income (loss) $ (1,272 ) $ 2,535 (Dollars in thousands) Condensed Statements of Cash Flows Years ended December 31, 2017 2016 Cash Flows from Operating Activities: Net income (loss) $ (1,272 ) $ 2,535 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Amortization of debt issuance costs 17 16 Stock-based compensation 200 60 Equity in undistributed earnings of subsidiaries 238 (3,379 ) Decrease (increase) in other assets (324 ) 240 Net change in deferred directors’ compensation 340 83 (Decrease) increase in other liabilities (300 ) (688 ) Net cash used in operating activities (1,101 ) (1,133 ) Cash Flows from Investing Activities: Maturities (purchases) of certificates of deposit 1,240 1,240 Investment in subsidiaries (8,750 ) (1,000 ) Net provided by (cash used) in investing activities (7,510 ) 240 Cash Flows from Financing Activities: Dividends paid and cash in lieu of stock (1,431 ) — Stock options exercised 253 — Issuance of stock, net 32,804 — ESOP loans acquired from VBC 911 — Net cash provided by financing activities 32,537 — Net decrease in cash and due from banks 23,926 (893 ) Cash and cash equivalents at January 1 1,158 2,051 Cash and cash equivalents at December 31 $ 25,084 $ 1,158 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss, net | 12 Months Ended |
Dec. 31, 2017 | |
Accumulated Other Comprehensive Loss, net | Note 25. Accumulated Other Comprehensive Loss, net Note 25. Accumulated Other Comprehensive Loss, net The balances in accumulated other comprehensive income (loss) are shown in the following table (dollars in thousands): Net Unrealized Pension and Post-retirement Accumulated Other Balance January 1, 2016 $ 107 $ (883 ) $ (776 ) Change in net unrealized holding losses on securities, before reclassification, net of tax benefit of $175 (340 ) — (340 ) Reclassification for previously unrealized net gains recognized in income, net of tax expense of $148 (287 ) — (287 ) Net gain on pension and postretirement plans, net of tax expense of $87 — 168 168 Balance December 31, 2016 (520 ) (715 ) (1,235 ) Change in net unrealized holding gains on securities, before reclassification, net of tax expense of $30 114 — 114 Reclassification for previously unrealized net gains recognized in income, net of tax expense of $0 (2 ) — (2 ) Net gain on pension and postretirement plans, net of tax expense of $41 — 155 155 Net current period other comprehensive gain (loss) 112 155 267 Tax Cuts and Jobs Act of 2017, reclassification from AOCI to retained earnings, tax effect (81 ) (107 ) (188 ) Balance at December 31, 2017 $ (489 ) $ (667 ) $ (1,156 ) Reclassification for previously unrealized gains and impairments on securities and pension and postemployment related costs are reported in the consolidated statements of comprehensive income (loss) as follows: Accumulated Other Comprehensive Income (Loss) (Dollars in thousands) Holding gains (losses) Pension and Net gains on sales of securities available-for-securities $ 2 $ — Salaries and employee benefits — (81 ) Tax (expense) benefit — 28 Impact on net income $ 2 $ (53 ) Accumulated Other Comprehensive Income (Loss) (Dollars in thousands) Holding gains (losses) Pension and Net gains on sale of securities available-for-securities $ 435 $ — Salaries and employee benefits — (77 ) Tax (expense) benefit (148 ) 26 Impact on net income $ 287 $ (51 ) |
Significant Accounting Polici34
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Use of estimates | Use of estimates The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions. The amounts recorded in the consolidated financial statements may be affected by those estimates and assumptions. Actual results may vary from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the measurement of fair value of foreclosed real estate, deferred taxes, impairment testing of goodwill, projected pension and post-retirement obligations and fair value measurements. |
Cash and cash equivalents | Cash and cash equivalents For purposes of the consolidated statements of cash flows, cash and cash equivalents include cash and balances due from banks, all of which mature within ninety days. Interest-bearing deposits in banks are carried at cost, which mature within one year, and include deposits with the Federal Reserve Bank of Richmond. |
Securities | Securities Investments in debt and equity securities with readily determinable fair values are classified as either held to maturity, available-for-sale, available-for-sale. available-for-sale Impairment of securities occurs when the fair value of a security is less than its amortized cost. For debt securities, impairment is considered other-than-temporary and recognized in its entirety in net income if (i) there is evidence of credit related impairment; (ii) the Company intends to sell the security or (iii) it is more-likely-than-not more-likely-than-not |
Securities sold under repurchase agreements | Securities sold under repurchase agreements Securities sold under repurchase agreements, which are classified as secured borrowings, generally mature within one year from the transaction date. Securities sold under repurchase agreements are reflected at the amount of cash received in connection with the transaction. The Company is required to provide collateral based on the value of the underlying cash. |
Loans | Loans The Company grants mortgage loans on real estate, commercial and industrial loans and consumer and other loans to customers. A substantial portion of the loan portfolio is represented by mortgage loans on real estate. The ability of the Company’s debtors to honor their contracts is dependent upon the real estate and general economic conditions in the Company’s market areas. Loans are reported at their recorded investment, which is the outstanding principal balance net of any unearned income, such as deferred fees and costs, charge-offs, discounts on acquired loans, and premiums or discounts on purchased loans. Interest on loans is recognized over the term of the loan and is calculated using the interest method on principal amounts outstanding. Loan origination fees and certain direct origination costs are deferred and recognized as an adjustment of the related loan yield over the contractual term of the loan, adjusted for early pay-offs, The accrual of interest is generally discontinued at the time a loan is 90 days or more past due, or earlier, if collection is uncertain based on an evaluation of the net realizable value of the collateral and the financial strength of the borrower. Loans greater than 90 days past due may remain on accrual status if the credit is well-secured and in process of collection. Personal loans are typically charged off no later than 180 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are charged off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual and past due policies are materially the same for all types of loans with the exception of PCI loans whose discount is being accreted to interest income. All interest accrued but not collected for loans that are placed on non-accrual |
Charge-Off of Uncollectible Loans | Charge-Off As soon as any loan becomes uncollectible, the loan will be charged down or charged off as follows: • If unsecured, the loan must be charged off in full. • If secured, the outstanding principal balance of the loan should be charged down to the net realizable value of the collateral. Loans should be considered uncollectible when: • No regularly scheduled payment has been made within four months, or • The loan is unsecured, the borrower files for bankruptcy protection and there is no other (guarantor, etc.) support from an entity outside of the bankruptcy proceedings |
Troubled debt restructuring ("TDR") | Troubled debt restructuring (“TDR”) In some situations, for economic or legal reasons related to a borrower’s financial condition, management may grant a concession to a borrower that it would not otherwise consider. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal, the related loan is classified as a troubled debt restructuring. Management strives to identify borrowers in financial difficulty early and work with them to modify their loan to more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. Management measures all TDRs for impairment as noted below for impaired loans. |
Allowance for loan losses ("ALL") | Allowance for loan losses (“ALL”) The ALL reflects management’s judgment of probable loan losses inherent in the portfolio at the balance sheet date. Management uses a disciplined process and methodology to establish the ALL each quarter. To determine the total ALL, the Company estimates the reserves needed for each homogenous segment and class of the portfolio, plus any loans analyzed individually for impairment. Depending on the nature of each segment and class, considerations include historical loss experience, adverse situations that may affect a borrower’s ability to repay, credit scores, past due history, estimated value of any underlying collateral, prevailing local and national economic conditions, and internal policies and procedures including credit risk management and underwriting. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as conditions change. Management employs a risk rating system to evaluate and consistently categorize loan portfolio credit risk. Prior to the merger, loans that were assigned risk rating grades included all commercial loans not secured by real estate, commercial mortgages, residential mortgages greater than $1 million, smaller residential mortgages which were impaired, loans to real estate developers and contractors, consumer loans greater than $250 thousand with chronic delinquency, and TDRs. All other loans that were not specifically assigned a risk rating grade were monitored as a discrete pool of loans generally based on delinquency status. Subsequent to the merger and core system conversion, with the exception of purchased consumer loan pools, all loans are risk rated using loan risk grading software that employs a variety of algorithms based on detailed account characteristics, which include a borrower’s payment history on a total relationship basis, as well as loan to value exposure. For non-homogeneous loans, management reviews these resulting grade assignments and makes adjustments to the final grade where appropriate based on an assessment of additional external information that may affect a particular loan. Purchased consumer loan pools are evaluated on a homogenous basis such that any balances past due by 90 days or more are rated substandard. Risk rating categories are as follows: Pass Watch Special Mention Substandard Doubtful Loss The ALL consists of specific, general, and unallocated components. The specific component is determined by identifying impaired loans (as described below) then evaluating each one to calculate the amount of impairment. Impaired loans measured for impairment generally include (1) any loan risk rated Special Mention or worse where the borrower has filed for bankruptcy; (2) all loans risk rated Substandard or worse with balances of $400 thousand or more; and (3) all loans classified as a TDR. A specific allowance arises when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component collectively evaluates any loans not identified as impaired, which are typically smaller commercial loans, residential mortgages and consumer loans, grouped into segments and classes. Historical loss experience is calculated and applied to each segment or class, then adjusted for qualitative factors. Qualitative factors include changes in local and national economic indicators, such as unemployment rates, interest rates, gross domestic product growth and real estate market trends; the level of past due and nonaccrual loans; risk ratings on individual loans; strength of credit policies and procedures; loan officer experience; borrower credit scores; and other intrinsic risks related to the types and geographic locations of loans. These qualitative adjustments reflect management’s judgment of risks inherent in the segments. An unallocated component is maintained if needed to cover uncertainties that could affect management’s estimate of probable losses. Changes in the allowance for loan losses and the related provision expense can materially affect net income. The specific component of the ALL calculation accounts for the loan loss reserve necessary on impaired loans. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not considered impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case The general component of the ALL calculation collectively evaluates groups of loans in segments and classes, as noted above. The segments are: (1) Mortgage loans on real estate; (2) Commercial and industrial loans; and (3) Consumer and other loans. The segment for Mortgage loans on real estate is disaggregated into the following classes: (1) Construction, land and land development; (2) Farmland; (3) Residential first mortgages; (4) Residential revolving and junior mortgages; (5) Commercial mortgages (non-owner-occupied); Construction and development loans carry risks that the project will not be finished according to schedule or according to budget and the value of the collateral, at any point in time, may be less than the principal amount of the loan. These loans also bear the risk that the general contractor may face financial pressure unrelated to the project. Loans secured by land, farmland and residential mortgages carry the risk of continued credit-worthiness of the borrower and changes in value of the underlying real estate collateral. Commercial mortgages and commercial and industrial loans carry risks associated with the profitable operation of a business and its related cash flows. Additionally, commercial and industrial loans carry risks associated with the value of collateral other than real estate which may depreciate over time. Consumer loans carry risks associated with the continuing credit-worthiness of the borrower and are more likely than real estate loans to be adversely affected by divorce, unemployment, personal illness or bankruptcy of an individual. Consumer loans secured by automobiles carry risks associated with rapidly depreciating collateral. Consumer loans include loans and debt consolidation loans purchased from third parties. Consumer loans have historically included credit cards, which are unsecured. The credit card portfolio was sold to an unaffiliated third party in the third quarter of 2016. The summation of the specific, general and unallocated components results in the total estimated ALL. This estimate is inherently subjective and actual losses could be greater or less than the estimates. Additions to the ALL are made by charges to earnings through the provision for loan losses. Charge-offs result from credit exposures deemed to be uncollectible and the ALL is reduced by these. Recoveries of previously charged off amounts are credited back to the ALL. Charge-off |
Loans Acquired in a Business Combination | Loans Acquired in a Business Combination The Company accounts for loans acquired in a business combination in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805, “Business Combinations.” Accordingly, acquired loans are segregated between PCI loans and purchased performing loans (“PPL”) and are recorded at fair value on the date of acquisition without the carryover of the related allowance for loan losses. PCI loans are those for which there is evidence of credit deterioration since origination and for which it is probably at the date of acquisition that the Company will not collect all contractually required principal and interest payments. When determining the market value, PCI loans were aggregated into pools of loans based on common characteristics as of the date of acquisition such as loan type, date of origination, and evidence of credit quality deterioration such as internal risk grades and past due and nonaccrual status. The Company estimates the amount and timing of expected cash flows for each loan or pool, and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan or pool (accretable yield). These estimates include certain prepayment assumptions based on the nature of each loan pool. The excess of the loan’s or pool’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded as a provision for loan losses. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. Loans not designated PCI loans as of the acquisition date are designated purchased performing loans. The Company accounts for purchased performing loans using the contractual cash flows method of recognizing discount accretion based on the acquired loans’ contractual cash flows. Purchased performing loans are recorded at fair value, including a credit discount. The fair value discount is accreted as an adjustment to yield over the estimated lives of the loans. There is no allowance for loan losses established at the acquisition date for purchased performing or PCI loans. A provision for loan loses is recorded for any deterioration in these loans subsequent to the acquisition. |
Mortgage servicing rights ("MSRs") | Mortgage servicing rights (“MSRs”) MSRs are included on the consolidated balance sheets and recorded at fair value on an ongoing basis. Changes in the fair value of the MSRs are recorded in the results of operations. A fair value analysis of MSRs is performed on a quarterly basis. |
Premises and equipment, net | Premises and equipment, net Land is carried at cost. Premises and equipment are carried at cost less accumulated depreciation. Depreciation is computed by the straight-line method over the estimated useful lives of the premises and equipment. Estimated useful lives range from 10-40 3-10 |
Other real estate owned, net | Other real estate owned, net Real estate properties acquired through, or in lieu of, loan foreclosure are marketed for sale and are initially recorded at the lesser of the fair value on the date of foreclosure less estimated selling costs or carrying value of the loan. After acquisition, management acquires new valuations at least every two years. Revenue and expenses related to the operation or maintenance of foreclosed properties are included in expenses from foreclosed assets and changes in the valuation allowance are included in other real estate gains (losses). |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill is related to unidentifiable intangible assets arising from the merger with Virginia BanCorp on April 1, 2017 and the acquisition of five branches during the years 1994 through 2000. Goodwill is tested annually for impairment. If impairment exists, the amount of impairment would result in a charge to expense. Intangible assets with definite useful lives are amortized over their estimated useful lives, to their estimated residual values. Goodwill is the only intangible asset with an indefinite life included on the Company’s Consolidated Balance Sheets. The core deposit intangible is the only intangible asset with a definite useful life, and is being amortized over 92 months. Long-lived assets, including purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Management concluded that no circumstances indicating an impairment of these assets existed as of the balance sheet date. |
Income taxes | Income taxes Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would ultimately be sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not The Company evaluates its deferred tax assets quarterly to determine if it is more likely than not those assets will be recovered and if a valuation allowance is needed. At December 31, 2017, the Company determined no valuation allowance related to its deferred tax assets was necessary. |
Pension benefits | Pension benefits The Company has a non-contributory |
Postretirement benefits | Postretirement benefits The Company provides certain health care benefits for employees who retired prior to March 1, 2018 and met eligibility requirements. |
Employer Stock Ownership Plan ("ESOP") | Employer Stock Ownership Plan (“ESOP”) The Company currently has two ESOPs for the benefit of all eligible employees. Shares held by the legacy ESOP of the former Bank of Lancaster employees are considered outstanding for purposes of computing earnings per share as they are fully allocated. Unearned ESOP shares in the ESOP acquired in the Virginia BanCorp merger, are shown as a reduction of shareholders’ equity. The unearned ESOP shares are not included in basic or diluted earnings per share calculation as discussed in Note 18 until those shares are allocated to participants’ accounts. The use of dividends paid on allocated ESOP shares are at the discretion of the Company. Dividends on unallocated ESOP shares, if paid, are considered to be compensation expense. The Company recognizes compensation cost equal to the fair value of the ESOP shares during the periods in which they are committed to be released. The Company recognizes a tax deduction equal to the cost of shares released. The unearned ESOP shares are pledged to a third party to collateralize a direct loan to the ESOP. The loan is guaranteed by the Company and is recorded on the Company’s consolidated balance sheets. |
Trust assets and income | Trust assets and income Customer assets held by the Financial Group, other than cash on deposit at the Bank, are not included in these financial statements, since such items are not assets of the Bank or the Financial Group. Trust fees are recorded on the accrual basis. |
Earnings per share | Earnings per share Basic earnings per share represent income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued by the Company relate solely to outstanding stock options. Shares held by the ESOP which collateralize ESOP borrowings are excluded from both basic and diluted averages shares outstanding. Refer to Note 20. |
Off-balance-sheet financial instruments | Off-balance-sheet In the ordinary course of business, the Company enters into off-balance-sheet |
Significant group concentration of credit risk | Significant group concentration of credit risk Most of the Company’s business activity is with customers located in the Virginia counties of Lancaster, Northumberland, Richmond, Westmoreland, Middlesex, Chesterfield, Henrico and the City of Richmond, Virginia. The Company makes residential, commercial and consumer loans and a significant amount of the loan portfolio is comprised of real estate mortgage loans, which are secured primarily by single-family residences. The adequacy of collateral on real estate mortgage loans is highly dependent on changes in real estate values. |
Advertising | Advertising Advertising costs are expensed as incurred and totaled $664 thousand and $197 thousand for the years ended December 31, 2017 and 2016, respectively. |
Comprehensive income | Comprehensive income Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains or losses on securities available-for-sale |
Fair value of financial instruments | Fair value of financial instruments Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 22. Fair value estimates involve uncertainties and matters of significant judgment. Changes in assumptions or in market conditions could significantly affect the estimates. |
Transfers of financial assets | Transfers of financial assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (1) the assets have been isolated from the Company – put presumptively beyond reach of the transferor and its creditors, even in bankruptcy or other receivership; (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets; and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. |
Stock-based compensation plans | Stock-based compensation plans Authoritative accounting guidance requires companies to recognize the cost of employee services received in exchange for awards of equity instruments, such as stock options and restricted stock, based on the fair value of those awards at the date of grant. This cost is recognized over the vesting period of the respective awards. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements . In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-02, 2018-02 In March 2017, the FASB issued ASU No. 2017-09, “Compensation – Stock Compensation (Topic 718).” ASU 2017-09 will In March 2017, the FASB issued ASU No. 2017-08, “Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities.” ASU 2017-08 will In March 2017, the FASB issued ASU 2017-07, “Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” ASU 2017-07 will ASU 2017-07 in In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), off-balance held-to-maturity 2016-13 available-for-sale available-for-sale available-for-sale 2016-13 non-accrual In February 2016, the FASB issued ASU 2016-02, 2016-02 2016-02 In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall 825-10) available-for-sale available-for 2016-01. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers 2014-09 2014-09 2014-09. 2014-09, |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule of Fair Value of Assets Acquired and Liabilities Assumed | The following table details the total consideration paid by the Company on April 1, 2017 in connection with the acquisition of Virginia BanCorp, the fair value of the assets acquired and liabilities assumed, and the resulting goodwill. Fair Value As Recorded As Recorded and Reclassification by the (Dollars in thousands) by VCB Adjustments Company Consideration paid: Bay Banks of Virginia, Inc. common stock $ 42,247 Identifiable assets acquired: Cash and due from banks $ 2,356 $ — $ 2,356 Interest-bearing deposits 12,342 — 12,342 Securities available-for-sale 22,088 — 22,088 Restricted securities 1,543 — 1,543 Loans receivable 272,479 (62,068 ) 210,411 Loans held for sale — 55,648 55,648 Deferred income taxes 1,325 255 1,580 Premises and equipment 3,333 2,703 6,036 Accrued interest receivable 1,253 (24 ) 1,229 Other real estate owned 3,113 — 3,113 Core deposit intangible — 3,670 3,670 Bank owned life insurance 8,430 — 8,430 Mortgage servicing rights 324 — 324 Other assets 365 — 365 Total identified assets acquired 328,951 184 329,135 Identifiable liabilities assumed: Noninterest-bearing deposits 21,119 — 21,119 Savings and interest-bearing demand deposits 124,640 — 124,640 Time deposits 121,437 733 122,170 Federal Home Loan Bank advances 25,000 — 25,000 Other liabilities 1,525 — 1,525 Total identifiable liabilities assumed 293,721 733 294,454 Total identifiable assets assumed $ 35,230 $ (549 ) $ 34,681 Goodwill resulting from acquisition $ 7,566 |
Schedule of Information about the PCI Impaired Loan | Information about the PCI loan portfolio at April 1, 2017 is as follows: (Dollars in thousands) April 1, 2017 Contractual principal and interest due $ 8,303 Nonaccretable difference 869 Expected cash flows 7,434 Accretable yield 1,354 Purchased credit impaired loans—estimated fair value $ 6,080 |
Schedule of Unaudited Pro Forma Financial Information | Additionally, the Company expects to achieve further operational cost savings and other efficiencies as a result of the acquisition which are not reflected in the unaudited pro forma amounts below: For the Years Ended (Dollars in thousands) December 31, 2017 December 31, 2016 Net interest income $ 27,169 $ 27,342 Net income 1,825 6,182 |
Schedule of Impact of Certain Acquisition Accounting Adjustments | The net effect of the amortization and accretion of premiums and discounts associated with the Company’s acquisition accounting adjustments to assets acquired and liabilities assumed from Virginia BanCorp had the following impact on the consolidated statements of operations for the years ended December 31, 2017. Year Ended (Dollars in thousands) December 31, 2017 Loans (1) $ 1,907 Core deposit intangible (2) (679 ) Time deposits (3) 307 Depreciation (4) (30 ) Net impact to income before income taxes $ 1,505 (1) Loan discount accretion is included in the “Loans, including fees” section of “Interest Income” in the consolidated statements of operations. (2 ) Premium amortization is included in “Other expense” section of “Non-Interest (3) Time deposit premium amortization is included in the “Deposits” section of “Interest Expense” in the consolidated statements of operations. (4) Depreciation on the fair value mark up of fixed assets is included in “Occupancy expense” section of “Non-Interest |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Information Concerning Intangible Assets with a Finite Life | Information concerning intangible assets with a finite life is presented in the following table: (Dollars in thousands) Gross Carrying Accumulated Net Carrying December 31, 2017 Value Amortization Value Core deposit intangibles $ 3,670 $ 679 $ 2,991 Other intangibles 999 — 999 $ 4,669 $ 679 $ 3,990 Gross Carrying Accumulated Net Carrying December 31, 2016 Value Amortization Value Other intangibles $ 671 $ — $ 671 |
Estimated Remaining Amortization Expense | As of December 31, 2017, the estimated remaining amortization expense of core deposit intangibles is as follows: (Dollars in thousands) 2018 $ 798 2019 674 2020 551 2021 427 2022 304 Thereafter 237 Total estimated amortization expense $ 2,991 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Aggregate Amortized Cost and Fair Values of Available-for-Sale Securities Portfolio | The aggregate amortized cost and fair values of the available-for-sale (Dollars in thousands) Gross Gross Available-for-sale Amortized Unrealized Unrealized Fair December 31, 2017 Cost Gains (Losses) Value Corporate bonds $ 6,696 $ 23 $ (2 ) $ 6,717 U.S. Government agencies and mortgage backed securities 49,964 6 (687 ) 49,283 State and municipal obligations 21,113 195 (155 ) 21,153 $ 77,773 $ 224 $ (844 ) $ 77,153 Gross Gross Available-for-sale Amortized Unrealized Unrealized Fair December 31, 2016 Cost Gains (Losses) Value Corporate bonds $ 7,695 $ 14 $ (5 ) $ 7,704 U.S. Government agencies and mortgage backed securities 25,668 53 (408 ) 25,313 State and municipal obligations 18,566 49 (459 ) 18,156 $ 51,929 $ 116 $ (872 ) $ 51,173 |
Gross Realized Gains and Gross Realized Losses on Sales of Securities | Gross realized gains and gross realized losses, as well as proceeds on sales and calls of securities, were as follows: For the years ended December 31, (Dollars in thousands) 2017 2016 Gross realized gains $ 7 $ 445 Gross realized losses (5 ) (10 ) Net realized gains $ 2 $ 435 Aggregate proceeds $ 17,937 $ 19,509 |
Aggregate Amortized Cost and Market Values of Investment Securities Portfolio by Contractual Maturity | The aggregate amortized cost and market values of the investment securities portfolio by contractual maturity at December 31, 2017, are shown below: (Dollars in thousands) Amortized Cost Fair Value Due in one year or less $ 3,583 $ 3,514 Due after one year through five years 37,746 37,425 Due after five through ten years 28,442 28,250 Due after ten years 8,002 7,964 $ 77,773 $ 77,153 |
Unrealized Loss Positions | Bonds with unrealized loss positions at December 31, 2016, included 37 federal agencies, one corporate bond and 39 municipals. (Dollars in thousands) Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2017 Value Loss Value Loss Value Loss Corporate bonds $ 498 $ (2 ) $ — $ — $ 498 $ (2 ) U.S. Government agencies 25,053 (353 ) 16,184 (334 ) 41,237 (687 ) States and municipal obligations 2,753 (15 ) 5,787 (140 ) 8,540 (155 ) Total temporarily impaired securities $ 28,304 $ (370 ) $ 21,971 $ (474 ) $ 50,275 $ (844 ) Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2016 Value Loss Value Loss Value Loss Corporate bonds $ 995 $ (5 ) $ — $ — $ 995 $ (5 ) U.S. Government agencies 20,933 (396 ) 1,308 (12 ) 22,241 (408 ) States and municipal obligations 12,888 (459 ) — — 12,888 (459 ) Total temporarily impaired securities $ 34,816 $ (860 ) $ 1,308 $ (12 ) $ 36,124 $ (872 ) |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Balances of Loans | The following is a summary of the balances of loans: (Dollars in thousands) December 31, 2017 December 31, 2016 Mortgage loans on real estate: Construction, Land and Land Development $ 66,042 $ 39,818 Farmland 923 1,023 Commercial Mortgages (Non-Owner 146,757 35,343 Commercial Mortgages (Owner Occupied) 80,052 41,825 Residential First Mortgages 269,365 194,007 Residential Revolving and Junior Mortgages 46,498 26,425 Commercial and Industrial loans 114,093 43,024 Consumer Loans 42,566 3,544 Total loans 766,296 385,009 Net unamortized deferred loan costs 200 391 Allowance for loan losses (7,770 ) (3,863 ) Loans, net $ 758,726 $ 381,537 |
Recorded Investment in Past Due and Non-accruing Loans | The recorded investment in past due and non-accruing 90 Days or 30-89 More Past Total Past (Dollars in thousands) Days Due and Due and Total December 31, 2017 Past Due Still Accruing Nonaccruals Nonaccruals Current Loans Mortgage Loans on Real Estate: Construction, Land and Land Development $ 261 $ — $ 1,237 $ 1,498 $ 64,544 $ 66,042 Farmland — 48 — 48 875 923 Commercial Mortgages (Non-Owner 449 — — 449 146,308 146,757 Commercial Mortgages (Owner Occupied) 412 — 1,752 2,164 77,888 80,052 Residential First Mortgages 2,321 — 1,942 4,263 265,102 269,365 Residential Revolving and Junior Mortgages 449 — 1,338 1,787 44,711 46,498 Commercial and Industrial 331 — 92 423 113,670 114,093 Consumer Loans 288 — 135 423 42,143 42,566 Total $ 4,511 $ 48 $ 6,496 $ 11,055 $ 755,241 $ 766,296 90 Days or 30-89 More Past Total Past Days Due and Due and Total December 31, 2016 Past Due Still Accruing Nonaccruals Nonaccruals Current Loans Mortgage Loans on Real Estate: Construction, Land and Land Development $ — $ — $ 623 $ 623 $ 39,195 $ 39,818 Farmland 57 — — 57 966 1,023 Commercial Mortgages (Non-Owner — — — — 35,343 35,343 Commercial Mortgages (Owner Occupied) 188 — 2,270 2,458 39,367 41,825 Residential First Mortgages 1,546 — 2,155 3,701 190,306 194,007 Residential Revolving and Junior Mortgages 480 — 160 640 25,785 26,425 Commercial and Industrial 408 — 92 500 42,524 43,024 Consumer Loans — — — — 3,544 3,544 Total $ 2,679 $ — $ 5,300 $ 7,979 $ 377,030 $ 385,009 |
PCI Loans | |
Recorded Investment in Past Due and Non-accruing Loans | The following table includes an aging analysis, based upon contractual terms, of the recorded investment of PCI loans as of December 31, 2017, included in the table above. 90 Days or 30-89 More Past Total Past (Dollars in thousands) Days Due and Due and Total December 31, 2017 Past Due Still Accruing Nonaccruals Nonaccruals Current Loans Mortgage Loans on Real Estate: Construction, Land and Land Development $ — $ — $ — $ — $ 1,405 $ 1,405 Commercial Mortgages (Non-Owner — — — — 171 171 Commercial Mortgages (Owner Occupied) 161 — — 161 160 321 Residential First Mortgages 349 141 — 490 3,320 3,810 Residential Revolving and Junior Mortgages — 20 — 20 29 49 Consumer loans — 4 — 4 65 69 Total $ 510 $ 165 $ 0 $ 675 $ 5,150 $ 5,825 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Allowance for Loan Losses by Portfolio Segment | A disaggregation of and an analysis of the change in the allowance for loan losses by segment is shown below. Mortgage Commercial Consumer Loans on and and other (Dollars in thousands) Real Estate Industrial Loans Total For the Twelve Months Ended December 31, 2017 Beginning Balance $ 3,318 $ 493 $ 52 $ 3,863 (Charge-offs) (577 ) (729 ) (171 ) (1,477 ) Recoveries 91 263 96 450 Provision (recovery) 1,032 851 3,051 4,934 Ending Balance $ 3,864 $ 878 $ 3,028 $ 7,770 Individually evaluated for impairment $ 861 $ 92 $ 141 $ 1,094 Collectively evaluated for impairment 3,003 786 2,887 6,676 Mortgage Commercial Consumer Loans on and and Other (Dollars in thousands) Real Estate Industrial Loans Total For the Twelve Months Ended December 31, 2016 Beginning Balance $ 3,502 $ 599 $ 122 $ 4,223 Reclassification of allowance related to sold loans — — (27 ) (27 ) (Charge-offs) (735 ) (158 ) (53 ) (946 ) Recoveries 254 61 11 326 Provision (recovery) 297 (9 ) (1 ) 287 Ending Balance $ 3,318 $ 493 $ 52 $ 3,863 Individually evaluated for impairment $ 803 $ 92 $ — $ 895 Collectively evaluated for impairment 2,515 401 52 2,968 |
Loan Receivables Evaluated for Impairment Individually and Collectively by Segment | Loan receivables evaluated for impairment individually and collectively by segment as of December 31, 2017 and 2016 are as follows: Mortgage Commercial Consumer Loans on and and Other (Dollars in thousands) Real Estate Industrial Loans Total As of December 31, 2017 Individually evaluated for impairment $ 8,874 $ 92 $ 141 $ 9,107 Collectively evaluated for impairment 595,007 114,001 42,356 751,364 Loans acquired with deteriorated credit quality 5,756 — 69 5,825 Total Gross Loans $ 609,637 $ 114,093 $ 42,566 $ 766,296 As of December 31, 2016 Individually evaluated for impairment $ 10,323 $ 92 $ — $ 10,415 Collectively evaluated for impairment 328,118 42,932 3,544 374,594 Total Gross Loans $ 338,441 $ 43,024 $ 3,544 $ 385,009 |
Schedule of Changes in Accretable Yield for PCI Loans | The following table presents the changes in the accretable yield for PCI loans (refer to Note 3) since acquisition on April 1, 2017 through December 31, 2017 (in thousands): December 31, Balance at acquisition, April 1, 2017 $ 1,354 Accretion (267 ) Reclassifications from nonaccretable balance, net — Other changes, net — Balance as of December 31, 2017 $ 1,087 |
Internal Risk Rating Grades | Internal risk rating grades are shown in the following table. Construction, Residential Commercial Commercial Land and Residential Revolving and Mortgages Mortgages Commercial (Dollars in thousands) Land First Junior (Non-Owner (Owner and Consumer As of December 31, 2017 Development Farmland Mortgages Mortgages Occupied) Occupied) Industrial Loans Total Grade: Pass $ 55,949 $ 923 $ 256,614 $ 43,659 $ 140,625 $ 67,732 $ 110,281 $ 12,431 $ 688,214 Watch 6,690 — 8,624 1,376 5,931 10,076 2,373 29,917 64,987 Special mention 172 — 205 — — — 1,347 — 1,724 Substandard 3,231 — 3,922 1,463 201 2,244 92 218 11,371 Doubtful — — — — — — — — — Total $ 66,042 $ 923 $ 269,365 $ 46,498 $ 146,757 $ 80,052 $ 114,093 $ 42,566 $ 766,296 Construction, Commercial Commercial Land and Mortgages Mortgages Commercial Land (Non-Owner (Owner and As of December 31, 2016 Development Farmland Occupied) Occupied) Industrial Total Grade: Pass $ 32,009 $ 1,023 $ 30,639 $ 31,191 $ 40,841 $ 135,703 Watch 5,795 — 4,184 6,652 1,891 18,522 Special mention 180 — 272 1,453 125 2,030 Substandard 1,834 — 248 2,529 167 4,778 Doubtful — — — — — — Total $ 39,818 $ 1,023 $ 35,343 $ 41,825 $ 43,024 $ 161,033 |
Performing and Non Performing Loans | These loans were considered to be nonperforming when they are delinquent by 90 days or more or non-accruing Residential Residential Revolving As of December 31, 2016 First and Junior Consumer PAYMENT ACTIVITY STATUS Mortgages (1) Mortgages (2) Loans (3) Total Performing $ 191,852 $ 26,265 $ 3,544 $ 221,661 Nonperforming 2,155 160 — 2,315 Total $ 194,007 $ 26,425 $ 3,544 $ 223,976 Notes: (1) Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $3.3 million as of December 31, 2016. (2) Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $1.1 million as of December 31, 2016. (3) No Consumer Loans had been assigned a risk rating grade of Substandard as of December 31, 2016. |
Company's Recorded Investment and Customers Unpaid Principal Balances for Impaired Loans, with Associated Allowance Amount | The following tables show the Company’s recorded investment and the customers’ unpaid principal balances for impaired (Dollars in thousands) As of December 31, 2017 As of December 31, 2016 IMPAIRED LOANS Recorded Customers’ Unpaid Related Recorded Customers’ Unpaid Related Investment Principal Balance Allowance Investment Principal Balance Allowance With no related allowance: Construction, Land and Land Development $ 900 $ 1,378 $ — $ 1,531 $ 1,539 $ — Residential First Mortgages 1,488 1,488 — 2,112 2,176 — Residential Revolving and Junior Mortgages (1) 414 414 — 995 999 — Commercial Mortgages (Non-owner — — — 248 248 — Commercial Mortgages (Owner occupied) 1,721 1,971 — 1,860 2,178 — Commercial and Industrial — — — — — — Consumer—Other — — — — — — 4,523 5,251 — 6,746 7,140 — With an allowance recorded: Construction, Land and Land Development 550 621 137 243 286 145 Residential First Mortgages 1,914 1,914 367 1,951 1,951 367 Residential Revolving and Junior Mortgages (1) 1,340 1,340 162 544 546 199 Commercial Mortgages (Non-owner — — — — — — Commercial Mortgages (Owner occupied) 547 586 195 839 854 92 Commercial and Industrial 92 92 92 92 101 92 Consumer—Other 141 141 141 — — — 4,584 4,694 1,094 3,669 3,738 895 Total Impaired Loans: Construction, Land and Land Development 1,450 1,999 137 1,774 1,825 145 Residential First Mortgages 3,402 3,402 367 4,063 4,127 367 Residential Revolving and Junior Mortgages (1) 1,754 1,754 162 1,539 1,545 199 Commercial Mortgages (Non-owner — — — 248 248 — Commercial Mortgages (Owner occupied) 2,268 2,557 195 2,699 3,032 92 Commercial and Industrial 92 92 92 92 101 92 Consumer—Other 141 141 141 — — — $ 9,107 $ 9,945 $ 1,094 $ 10,415 $ 10,878 $ 895 Notes: (1) Junior mortgages include equity lines. For the Year Ended For the Year Ended December 31, 2017 December 31, 2016 Average Interest Average Interest Recorded Income Recorded Income (Dollars in thousands) Investment Recognized Investment Recognized With no related allowance: Construction, Land and Land Development $ 1,282 $ 66 $ 1,316 $ 55 Residential First Mortgages 1,449 21 1,956 14 Residential Revolving and Junior Mortgages (1) 417 5 808 38 Commercial Mortgages (Non-owner — — 251 15 Commercial Mortgages (Owner occupied) 1,800 32 1,858 27 Commercial and Industrial — — — — Consumer—Other — — — — 4,948 124 6,189 149 With an allowance recorded: Construction, Land and Land Development 572 4 253 5 Residential First Mortgages 1,932 93 1,956 90 Residential Revolving and Junior Mortgages (1) 1,360 44 218 9 Commercial Mortgages (Non-owner — — — — Commercial Mortgages (Owner occupied) 572 12 819 22 Commercial and Industrial 92 — 103 1 Consumer—Other 28 6 — — 4,556 159 3,349 127 Total Construction, Land and Land Development 1,854 70 1,569 60 Residential First Mortgages 3,381 114 3,912 104 Residential Revolving and Junior Mortgages (1) 1,777 49 1,026 47 Commercial Mortgages (Non-owner — — 251 15 Commercial Mortgages (Owner occupied) 2,372 44 2,677 49 Commercial and Industrial 92 — 103 1 Consumer—Other 28 6 — — $ 9,504 $ 283 $ 9,538 $ 276 |
Summary of Troubled Debt Restructurings | The following table presents, by segments of loans, information related to loans modified as TDRs during the years ended December 31, 2017 and 2016. For the Year Ended For the Year Ended December 31, 2017 December 31, 2016 Pre-Modification Post-Modification Pre-Modification Post-Modification (Dollars in thousands) Outstanding Outstanding Outstanding Outstanding Number of Recorded Recorded Number of Recorded Recorded TROUBLED DEBT RESTRUCTURINGS Loans Investment Investment Loans Investment Investment Residential first mortages (1) 1 $ 820 $ 820 1 $ 244 $ 244 Consumer loan (1) 1 147 147 — — — Notes: (1) Modifications were an extention of the loan terms. For the Year Ended For the Year Ended December 31, 2017 December 31, 2016 TROUBLED DEBT RESTRUCTURINGS THAT SUBSEQUENTLY DEFAULTED Number of Recorded Number of Recorded Commerical mortgages (Owner occupied) 0 0 0 0 |
Other Real Estate Owned, Net (T
Other Real Estate Owned, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Net of Valuation Allowances for Losses on Other Real Estate Owned | Other real estate owned (“OREO”) is presented net of a valuation allowance for losses. An analysis of the valuation allowance on OREO is shown below. Years ended December 31, (Dollars in thousands) 2017 2016 Balance, beginning of year $ 473 $ 621 Provision for losses 245 53 Charge-offs (190 ) (201 ) Balance, end of period $ 528 $ 473 |
Components of Expenses Applicable to Foreclosed Assets | Expenses applicable to OREO include the following: Years ended December 31, (Dollars in thousands) 2017 2016 Net (gain) loss on sales of real estate $ (23 ) $ 74 Provision for losses 245 53 Operating expenses, net of income 138 93 Total expenses $ 360 $ 220 |
Summary of Properties Included in Other Real Estate Owned (OREO) | The following table details the properties included in OREO as of December 31, 2017 and December 31, 2016. There were no collateralized consumer residential mortgage loans in the process of foreclosure as of December 31, 2017. As of December 31, 2017 As of December 31, 2016 No. of Carrying No. of Carrying (Dollars in thousands) Properties Value Properties Value Residential 5 $ 443 2 $ 891 Land lots 20 3,223 7 547 Convenience store 1 55 1 59 Restaurant 1 36 1 55 Commerical properties 2 527 3 942 Total 29 $ 4,284 14 $ 2,494 |
Premises and Equipment, net (Ta
Premises and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Components of Premises and Equipment Included in Balance Sheets | Components of premises and equipment included in the balance sheets at December 31, 2017 and 2016 were as follows: 2017 2016 (Dollars in thousands) Land and improvements $ 4,762 $ 2,350 Buildings and improvements 16,634 12,221 Furniture and equipment 9,126 10,323 Total cost 30,522 24,894 Less accumulated depreciation (12,656 ) (14,050 ) Premises and equipment, net $ 17,866 $ 10,844 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule of Time Deposits Maturities | At December 31, 2017, the scheduled maturities of time deposits are as follows (in thousands): 2018 $ 235,751 2019 30,986 2020 54,022 2021 25,991 2022 12,239 Thereafter — $ 358,989 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Change in Benefit Obligation | Pension Benefits Postretirement Benefits (Dollars in thousands) 2017 2016 2017 2016 Change in benefit obligation Benefit obligation, beginning of year $ 3,398 $ 3,488 $ 540 $ 668 Service cost — — 22 22 Interest cost 121 134 21 28 Actuarial loss (gain) 323 17 (120 ) (170 ) Benefit payments (581 ) (279 ) (6 ) (8 ) Settlement loss 12 38 — — Benefit obligation, end of year 3,273 3,398 457 540 |
Change in Plan Assets | Change in plan assets Fair value of plan assets, beginning of year 2,690 2,806 — — Actual return on plan assets 356 163 — — Employer contributions — — 6 8 Benefits payments (581 ) (279 ) (6 ) (8 ) Fair value of plan assets, end of year 2,465 2,690 — — |
Defined Benefit Plan Funded Status | Funded status at the end of the year $ (808 ) $ (708 ) $ (457 ) $ (540 ) |
Amounts Recognized in Accumulated Other Comprehensive Loss (Income) | Amounts recognized in accumulated other comprehensive loss (income) Net loss (gain) $ 1,187 $ 1,316 $ (344 ) $ (234 ) Prior service cost — — — — Net obligation at transition — — — — Amount recognized $ 1,187 $ 1,316 $ (344 ) $ (234 ) |
Components of Net Periodic Benefit Cost (Gain) | Components of net periodic benefit cost (gain) Service cost $ — $ — $ 22 $ 22 Interest cost 121 134 21 28 Expected (return) on plan assets (167 ) (189 ) — — Amortization of prior service cost — — — — Amortization of net obligation at transition — — (11 ) — Recognized net loss due to settlement 195 90 — — Recognized net actuarial loss 81 77 — — Net periodic benefit (gain) cost 230 112 32 50 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Accumulated Other Comprehensive (Income) Loss | Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive (income) loss Net (gain) loss (130 ) (86 ) (109 ) (170 ) Amortization of prior service cost — — — — Amortization of net obligation at transition — — — — Total recognized in other comprehensive loss/(income) (130 ) (86 ) (109 ) (170 ) Total recognized in net periodic benefit cost and other comprehensive loss/(income) $ 100 $ 26 $ (77 ) $ (120 ) |
Weighted-average Assumptions | Weighted-average assumptions as of December 31: 2017 2016 2017 2016 Discount rate used for Net Periodic Pension Cost 4.00 % 4.25 % 4.00 % 4.25 % Discount Rate used for Disclosure 3.50 % 4.00 % 3.50 % 4.00 % Expected return on plan assets 7.25 % 7.50 % N/A N/A Rate of compensation increase N/A N/A N/A N/A Rate of compensation increase for net periodic pension cost N/A N/A N/A N/A Expected future interest crediting rate 3.00 % 3.00 % N/A N/A |
Estimated Future Benefit Payments for Pension and Postretirement Plans | Estimated future benefit payments for the pension and postretirement plans are as follows (in thousands): Pension Postretirement 2018 $ 316 $ 6 2019 321 7 2020 265 7 2021 206 7 2022 195 6 2023 - 2027 1,417 28 |
Other Borrowings (Tables)
Other Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Short-term Borrowings | The table below presents selected information on short-term borrowings: As of December 31, 2017 2016 (Dollars in Thousands) Balance outstanding at period-end $ 9,498 $ 18,310 Maximum balance at any month end during the year $ 17,091 $ 18,310 Average balance for the period $ 11,001 $ 9,299 Weighted average rate for the period 0.17 % 0.16 % Weighted average rate on borrowings at period end 0.21 % 0.13 % Estimated fair value at year end $ 9,498 $ 18,310 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Advances of Debt | The two advances are shown in the following table. Description Balance Originated Interest Rate Date Adjustable Rate Hybrid $ 10,000,000 4/12/2013 3.25750 % 4/13/2020 Fixed Rate Credit 60,000,000 12/1/2017 1.34000 % 1/2/2018 $ 70,000,000 1.68000 % |
Subordinated Debt | (Dollars in thousands) Balance as of Balance as of 6.5% Subordinated Debt $ 7,000 $ 7,000 Less: Issuance costs (123 ) (140 ) $ 6,877 $ 6,860 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Expense (Benefit) for Income Taxes | The expense (benefit) for income taxes consisted of the following (in thousands): Year ended December 31, 2017 2016 Current $ 362 $ 1,054 Deferred 435 (88 ) $ 797 $ 966 |
Summary of Reasons for Differences Between Statutory Federal Income Tax Rates and Effective Tax Rates | The reasons for the differences between the statutory Federal income tax rates and the effective tax rates are summarized as follows: 2017 2016 Statutory rate 34.0 % 34.0 % Increase (decrease) resulting from: Tax exempt interest 51.1 % -6.1 % Bank owned life insurance 33.9 % -2.7 % Merger costs -15.0 % 2.5 % The Tax Act -283.1 % 0.0 % Other, net 11.4 % -0.1 % -167.8 % 27.6 % |
Components of Net Deferred Tax Assets and Liabilities | The components of the net deferred tax assets and liabilities included in other assets, using federal corporate tax rates of 21% as of December 31, 2017 and 34% as of December 31, 2016, are as follows (in thousands): December 31, 2017 2016 Deferred tax assets Allowance for loan losses $ 1,632 $ 908 Interest on non-accrual 58 130 Other real estate 433 446 Pension plan 170 242 Postretirement benefits 96 184 Unrealized losses (gains) on available-for-sale 130 268 Deferred compensation 189 191 Stock-based compensation 26 30 Alternative Minimum Tax Credit 134 — Net discount on loan portfolios acquired in merger with Virginia Bancorp 1,576 — Premium on time deposits acquired in merger with Virginia Bancorp 89 — Other 212 27 Total deferred tax assets 4,745 2,426 Deferred tax liabilities Depreciation (69 ) (126 ) Amortization of goodwill (1,218 ) (955 ) Net deferred loan fees and costs 65 (133 ) Premium on fixed assets acquired in merger with Virginia Bancorp (561 ) — Recapture of bad debts experience reserve (229 ) — Other (391 ) (58 ) Total deferred tax liabilities (2,403 ) (1,272 ) Net deferred tax assets $ 2,342 $ 1,154 |
Regulatory Requirements and R47
Regulatory Requirements and Restrictions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule of Bank's Actual Capital Amounts and Ratios | The Company’s and the Bank’s actual capital amounts and ratios as of December 31, 2017 and December 31, 2016, are presented in the following tables: Actual Minimum Minimum (Dollars in Thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2017: Total Risk Based Capital (to Risk Weighted Assets) Consolidated $ 120,091 16.24 % $ 59,150 8.00 % N/A N/A Virginia Commonwealth Bank 93,540 12.70 % 58,914 8.00 % $ 73,642 10.0 % Tier 1 Capital (to Risk Weighted Assets) Consolidated 105,444 14.26 % 44,363 6.00 % N/A N/A Virginia Commonwealth Bank 85,770 11.65 % 44,185 6.00 % $ 58,914 8.0 % Common Equity Tier 1 Capital (to Risk Weighted Assets) Consolidated 105,444 14.26 % 33,272 4.50 % N/A N/A Virginia Commonwealth Bank 85,770 11.65 % 33,139 4.50 % $ 47,868 6.5 % Tier 1 Capital (to Average Assets) Consolidated 105,444 10.99 % 38,382 4.00 % N/A N/A Virginia Commonwealth Bank 85,770 8.97 % 38,259 4.00 % $ 47,824 5.0 % Actual Minimum Minimum (Dollars in Thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2016: Total Risk Based Capital (to Risk Weighted Assets) Consolidated $ 51,810 15.02 % $ 27,600 8.00 % N/A N/A Bank of Lancaster 46,977 13.69 % 27,460 8.00 % $ 34,325 10.0 % Tier 1 Capital (to Risk Weighted Assets) Consolidated 41,087 11.91 % 20,700 6.00 % N/A N/A Bank of Lancaster 43,114 12.56 % 20,595 6.00 % $ 27,460 8.0 % Common Equity Tier 1 Capital (to Risk Weighted Assets) Consolidated 41,087 11.91 % 15,525 4.50 % N/A N/A Bank of Lancaster 43,114 12.56 % 15,446 4.50 % $ 22,311 6.5 % Tier 1 Capital (to Average Assets) Consolidated 41,087 8.66 % 18,967 4.00 % N/A N/A Bank of Lancaster 43,114 9.18 % 18,793 4.00 % $ 23,491 5.0 % |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value of Options | The variables used in these calculations of the fair value of the options are as follows: For the twelve months ended December 31, 2017 2016 Risk free interest rate (5 year Treasury) 2.10% 1.94% Expected dividend yield 1% 0% Expected term (years) 5 5 Expected volatility 16.1%-21.7% 24.5%-40.1% |
Summary of Stock Option Activity | Stock option plan activity for 2017 and 2016 is summarized below: Weighted Average Weighted Average Remaining Aggregate Shares Exercise Contractual Life Intrinsic Options outstanding, January 1, 2016 211,185 $ 6.57 6.0 Granted 29,500 7.24 Forfeited (13,787 ) 5.90 Exercised 0 0 Expired (8,598 ) 12.84 Options outstanding, December 31, 2016 218,300 $ 6.35 6.0 $ 378,288 Granted 86,790 10.08 Forfeited (1,195 ) 8.43 Exercised (43,244 ) 5.85 Expired (9,625 ) 13.76 Options outstanding, December 31, 2017 251,026 $ 7.43 6.73 $ 753,229 Options exercisable, December 31, 2017 251,026 $ 7.43 6.73 $ 753,229 (1) The aggregate intrinsic value of a stock option in the table above represents the total pre-tax |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Weighted Average Number of Shares Used in Computing Earnings per Share | The following table shows the weighted average number of shares used in computing earnings per share and the effect on the weighted average number of shares of dilutive potential common stock. December 31, 2017 December 31, 2016 Average Per share Average Per share Basic earnings per share 9,399,223 $ (0.14 ) 4,774,856 $ 0.53 Effect of dilutive securities: Stock options — 25,090 Diluted earnings per share 9,399,223 $ (0.14 ) 4,799,946 $ 0.53 |
Related Parties (Tables)
Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Related Party Transactions | (Dollars in thousands Balance, January 1, 2017 $ 8,863 New loans and extensions to existing loans 25 Repayments and other reductions (1,534 ) Balance, December 31, 2017 $ 7,354 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule of Balances of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2017 and December 31, 2016: (Dollars in thousands) Fair Value Measurements at December 31, 2017 Using Description Balance Level 1 Level 2 Level 3 Securities available-for-sale: Corporate bonds $ 6,717 $ — $ — $ 6,717 U. S. Government agencies and mortgage backed securities 49,283 — 49,283 — State and municipal obligations 21,153 — 21,153 — Total securities available-for-sale: $ 77,153 $ — $ 70,436 $ 6,717 Mortgage servicing rights $ 999 $ — $ — $ 999 Defined benefit plan assets: Mutual funds - fixed income 994 994 — — Mutual funds - equity 1,471 1,471 — — Total defined benefit plan assets $ 2,465 $ 2,465 $ — $ — Fair Value Measurements at December 31, 2016 Using Description Balance Level 1 Level 2 Level 3 Securities available-for-sale: Corporate bonds $ 7,704 $ — $ — $ 7,704 U. S. Government agencies 25,313 — 25,313 — State and municipal obligations 18,156 — 18,156 — Total securities available-for-sale: $ 51,173 $ — $ 43,469 $ 7,704 Mortgage servicing rights $ 671 $ — $ — $ 671 Defined benefit plan assets: Mutual funds - fixed income $ 1,041 $ 1,041 $ — $ — Mutual funds - equity 1,649 1,649 — — Total defined benefit plan assets $ 2,690 $ 2,690 $ — $ — |
Reconciliation of Items Using Level Three Inputs | The reconciliation of items using Level 3 inputs is as follows: (Dollars in thousands) MSRs Corporate Balance, January 1, 2017 $ 671 $ 7,704 Purchases — — Acquired in merger 324 — Impairments — — Fair value adjustments 4 13 Sales — (1,000 ) Balance, December 31, 2017 $ 999 $ 6,717 (Dollars in thousands) MSRs Corporate Balance, January 1, 2016 $ 658 $ 3,945 Purchases — 3,750 Impairments — — Fair value adjustments 13 9 Sales — — Balance, December 31, 2016 $ 671 $ 7,704 |
Summary of Assets Measured at Fair Value on Nonrecurring Basis | The following table summarizes the Company’s assets that were measured at fair value on a nonrecurring basis at the end of the respective period. Fair Value Measurements at (Dollars in thousands) Balance as of Description December 31, 2017 Level 1 Level 2 Level 3 Impaired Loans, net $ 3,491 $ — $ — $ 3,491 Other real estate owned, net 4,284 — — 4,284 Fair Value Measurements at Balance as of Description December 31, 2016 Level 1 Level 2 Level 3 Impaired Loans, net $ 2,774 $ — $ — $ 2,774 Other real estate owned, net 2,494 — — 2,494 |
Summary of Quantitative Fair Value Measurements for Level 3 | The following table displays quantitative information about Level 3 Fair Value Measurements as of December 31, 2017: (Dollars in thousands) Balance as of Valuation Technique Unobservable Input Range (Weighted Impaired Loans, net $ 3,491 Discounted appraised value Selling Cost 6% - 20% (16%) Lack of Marketability 50% - 90% (65%) Other real estate owned, net 4,284 Discounted appraised value Selling Cost 3% - 13% (8%) Lack of Marketability 10% - 100% (16%) The following table displays quantitative information about Level 3 Fair Value Measurements as of December 31, 2016: (Dollars in thousands) Balance as of Valuation Technique Unobservable Input Range (Weighted Impaired Loans, net $ 2,774 Discounted appraised value Selling Cost 10% - 20% (16%) Lack of Marketability 50% (50%) Other real estate owned, net 2,494 Discounted appraised value Selling Cost 3% - 13% (5%) Lack of Marketability 10% - 20% (11%) |
Estimated Fair Values of Financial Instruments | The estimated fair values of financial instruments are shown in the following table. The carrying amounts in the table are included in the balance sheet under the applicable captions. Fair Value Measurements at December 31, 2017 Using (Dollars in thousands) Balance as of Fair Value as of Description December 31, 2017 December 31, 2017 Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 9,396 $ 9,396 $ 9,396 $ — $ — Interest-bearing deposits 41,971 41,971 41,971 — — Certificates of deposit 3,224 3,224 — 3,224 — Federal funds sold 6,961 6,961 6,961 — — Securities available-for-sale 77,153 77,153 — 70,436 6,717 Restricted securities 5,787 5,787 — — 5,787 Loans, net 758,726 774,099 — — 774,099 Loans held for sale 1,651 1,651 — — 1,651 Accrued interest receivable 3,194 3,194 — 3,194 — Mortgage servicing rights 999 999 — — 999 Financial Liabilities: Non-interest-bearing $ 103,037 $ 103,037 $ 103,037 $ — $ — Savings and other interest-bearing deposits 299,820 299,820 — 299,820 — Time deposits 358,989 356,450 — — 356,450 Securities sold under repurchase agreements 9,498 9,498 — 9,498 — FHLB advances 70,000 70,486 — 70,486 — Subordinated debt 6,877 7,000 — — 7,000 Accrued interest payable 318 318 — 318 — Fair Value Measurements at December 31, 2017 Using (Dollars in thousands) Balance as of Fair Value as of Description December 31, 2016 December 31, 2016 Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 4,851 $ 4,851 $ 4,851 $ — $ — Interest-bearing deposits 7,501 7,501 7,501 — — Certificates of deposit 4,216 4,216 — 4,216 — Federal funds sold 2,350 2,350 2,350 — — Securities available-for-sale 51,173 51,173 — 43,469 7,704 Restricted securities 2,649 2,649 — — 2,649 Loans, net 381,537 384,468 — — 384,468 Loans held for sale 276 276 — — 276 Accrued interest receivable 1,372 1,372 — 1,372 — Mortgage servicing rights 671 671 — — 671 Financial Liabilities: Non-interest-bearing $ 74,799 $ 74,799 $ 74,799 $ — $ — Savings and other interest-bearing deposits 178,869 178,869 — 178,869 — Time deposits 128,050 127,497 — — 127,497 Securities sold under repurchase agreements 18,310 18,310 — 18,310 — FHLB advances 35,000 35,668 — 35,668 — Subordinated debt 6,860 7,000 — — 7,000 Accrued interest payable 331 331 — 331 — |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Future Minimum Lease payments for Long-term Non-cancelable Lease agreements | the following is a schedule, by year, of future minimum lease payments required under the long-term non-cancelable 2018 341 2019 270 2020 262 2021 270 2022 160 1,303 |
Condensed Financial Informati53
Condensed Financial Information of Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Balance Sheets | Financial information pertaining only to Bay Banks of Virginia, Inc. is as follows: Condensed Balance Sheets December 31, 2017 December 31, 2016 Assets Cash and due from non-affiliated $ 24,475 $ 990 Interest-bearing deposits 609 168 Certificates of deposit — 1,240 Investments in subsidiaries 96,539 45,510 Other assets 2,002 1,680 Total assets $ 123,625 $ 49,588 Liabilities and Shareholders’ Equity Liabilities Subordinated debt $ 6,877 $ 6,860 Deferred directors’ compensation 901 561 Other borrowings 1,129 — Other liabilities 162 462 Total liabilities 9,069 7,883 Total shareholders’ equity 114,556 41,705 Total liabilities and shareholders’ equity $ 123,625 $ 49,588 |
Condensed Statements of Operations | (Dollars in thousands) Condensed Statements of Operations Years ended December 31, 2017 2016 Interest income $ 2 $ 17 Interest expense 481 472 Net interest expense (479 ) (455 ) Non-interest 857 678 Non-interest 1,752 1,261 Loss before income taxes and equity in undistributed earnings of subsidiaries (1,374 ) (1,038 ) Income tax benefit (340 ) (194 ) Loss before equity in undistributed earnings of subsidiaries (1,034 ) (844 ) Equity in undistributed earnings of subsidiaries (238 ) 3,379 Net income (loss) $ (1,272 ) $ 2,535 |
Condensed Statements of Cash Flows | (Dollars in thousands) Condensed Statements of Cash Flows Years ended December 31, 2017 2016 Cash Flows from Operating Activities: Net income (loss) $ (1,272 ) $ 2,535 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Amortization of debt issuance costs 17 16 Stock-based compensation 200 60 Equity in undistributed earnings of subsidiaries 238 (3,379 ) Decrease (increase) in other assets (324 ) 240 Net change in deferred directors’ compensation 340 83 (Decrease) increase in other liabilities (300 ) (688 ) Net cash used in operating activities (1,101 ) (1,133 ) Cash Flows from Investing Activities: Maturities (purchases) of certificates of deposit 1,240 1,240 Investment in subsidiaries (8,750 ) (1,000 ) Net provided by (cash used) in investing activities (7,510 ) 240 Cash Flows from Financing Activities: Dividends paid and cash in lieu of stock (1,431 ) — Stock options exercised 253 — Issuance of stock, net 32,804 — ESOP loans acquired from VBC 911 — Net cash provided by financing activities 32,537 — Net decrease in cash and due from banks 23,926 (893 ) Cash and cash equivalents at January 1 1,158 2,051 Cash and cash equivalents at December 31 $ 25,084 $ 1,158 |
Accumulated Other Comprehensi54
Accumulated Other Comprehensive Loss, net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Balances in Accumulated Other Comprehensive Income (Loss) | The balances in accumulated other comprehensive income (loss) are shown in the following table (dollars in thousands): Net Unrealized Pension and Post-retirement Accumulated Other Balance January 1, 2016 $ 107 $ (883 ) $ (776 ) Change in net unrealized holding losses on securities, before reclassification, net of tax benefit of $175 (340 ) — (340 ) Reclassification for previously unrealized net gains recognized in income, net of tax expense of $148 (287 ) — (287 ) Net gain on pension and postretirement plans, net of tax expense of $87 — 168 168 Balance December 31, 2016 (520 ) (715 ) (1,235 ) Change in net unrealized holding gains on securities, before reclassification, net of tax expense of $30 114 — 114 Reclassification for previously unrealized net gains recognized in income, net of tax expense of $0 (2 ) — (2 ) Net gain on pension and postretirement plans, net of tax expense of $41 — 155 155 Net current period other comprehensive gain (loss) 112 155 267 Tax Cuts and Jobs Act of 2017, reclassification from AOCI to retained earnings, tax effect (81 ) (107 ) (188 ) Balance at December 31, 2017 $ (489 ) $ (667 ) $ (1,156 ) |
Reclassification of Unrealized Gains and Impairments on Securities and Pension and Postemployment Related Costs | Reclassification for previously unrealized gains and impairments on securities and pension and postemployment related costs are reported in the consolidated statements of comprehensive income (loss) as follows: Accumulated Other Comprehensive Income (Loss) (Dollars in thousands) Holding gains (losses) Pension and Net gains on sales of securities available-for-securities $ 2 $ — Salaries and employee benefits — (81 ) Tax (expense) benefit — 28 Impact on net income $ 2 $ (53 ) Accumulated Other Comprehensive Income (Loss) (Dollars in thousands) Holding gains (losses) Pension and Net gains on sale of securities available-for-securities $ 435 $ — Salaries and employee benefits — (77 ) Tax (expense) benefit (148 ) 26 Impact on net income $ 287 $ (51 ) |
Organization and Presentation -
Organization and Presentation - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017Subsidiary | |
Organization And Basis Of Presentation [Line Items] | |
Number of active subsidiaries | 2 |
Business Combination - Addition
Business Combination - Additional Information (Detail) - USD ($) $ in Thousands | Apr. 01, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2017 |
Business Acquisition [Line Items] | |||||
Goodwill during acquisition | $ 10,374 | $ 2,808 | |||
Loans acquired held for sale | 1,651 | 276 | |||
Acquisition related expenses | $ 1,976 | $ 575 | |||
Core Deposits | |||||
Business Acquisition [Line Items] | |||||
Weighted average life of core deposit intangible | 92 months | ||||
Virginia BanCorp | |||||
Business Acquisition [Line Items] | |||||
Ownership percentage by shareholders of acquiring entity | 51.00% | ||||
Ownership percentage by shareholders of acquired entity | 49.00% | ||||
Common stock exchange ratio | 1.178 | ||||
Business combination, number of shares exchanged | 4,586,221 | ||||
Business combination, value of shares exchanged | $ 42,200 | ||||
Goodwill during acquisition | $ 7,600 | ||||
Fair value maximum refinement period post acquisition | 1 year | ||||
Fair value of acquired loans not accounted for as debt securities | $ 266,100 | ||||
Discount on pool | 2,200 | ||||
Increase in deferred tax assets | 735 | ||||
Increase in previously disclosed goodwill | 1,400 | ||||
Loans acquired held for sale | $ 55,400 | ||||
Adjustment on Fair value of premises and equipment | $ 2,700 | ||||
Percentage of acquired deposit, excluding time deposit | 2.52% | ||||
Acquisition related expenses | $ 174 | $ 2,000 | |||
Virginia BanCorp | PCI Loans | |||||
Business Acquisition [Line Items] | |||||
Gross Contractual amount | $ 8,300 | ||||
Uncollectible receivables | $ 7,400 | ||||
Virginia BanCorp | Federal Home Loan Bank of Atlanta | |||||
Business Acquisition [Line Items] | |||||
Maturity Date | Apr. 30, 2017 | ||||
Virginia BanCorp | Minimum | |||||
Business Acquisition [Line Items] | |||||
Certificate of deposit maximum maturity period | 1 month | ||||
Virginia BanCorp | Maximum | |||||
Business Acquisition [Line Items] | |||||
Certificate of deposit maximum maturity period | 5 years | ||||
Virginia BanCorp | Certificates of Deposit | |||||
Business Acquisition [Line Items] | |||||
Adjustment on Fair value of premises and equipment | $ 733 | ||||
Virginia BanCorp | Core Deposits | |||||
Business Acquisition [Line Items] | |||||
Core deposit intangible, fair value | $ 3,700 | ||||
Weighted average life of core deposit intangible | 92 months |
Business Combination - Schedule
Business Combination - Schedule of Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Apr. 01, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Identifiable liabilities assumed: | |||
Goodwill resulting from acquisition | $ 10,374 | $ 2,808 | |
Parent Company | |||
Consideration paid: | |||
Bay Banks of Virginia, Inc. common stock | $ 42,247 | ||
Identifiable assets acquired: | |||
Cash and due from banks | 2,356 | ||
Interest-bearing deposits | 12,342 | ||
Securities available-for-sale | 22,088 | ||
Restricted securities | 1,543 | ||
Loans receivable | 210,411 | ||
Loans held for sale | 55,648 | ||
Deferred income taxes | 1,580 | ||
Premises and equipment | 6,036 | ||
Accrued interest receivable | 1,229 | ||
Other real estate owned | 3,113 | ||
Core deposit intangible | 3,670 | ||
Bank owned life insurance | 8,430 | ||
Mortgage servicing rights | 324 | ||
Other assets | 365 | ||
Total identified assets acquired | 329,135 | ||
Identifiable liabilities assumed: | |||
Noninterest-bearing deposits | 21,119 | ||
Savings and interest-bearing demand deposits | 124,640 | ||
Time deposits | 122,170 | ||
Federal Home Loan Bank advances | 25,000 | ||
Other liabilities | 1,525 | ||
Total identifiable liabilities assumed | 294,454 | ||
Total identifiable assets assumed | 34,681 | ||
Goodwill resulting from acquisition | 7,566 | ||
Fair Value and Reclassification Adjustment | |||
Identifiable assets acquired: | |||
Loans receivable | (62,068) | ||
Loans held for sale | 55,648 | ||
Deferred income taxes | 255 | ||
Premises and equipment | 2,703 | ||
Accrued interest receivable | (24) | ||
Core deposit intangible | 3,670 | ||
Total identified assets acquired | 184 | ||
Identifiable liabilities assumed: | |||
Time deposits | 733 | ||
Total identifiable liabilities assumed | 733 | ||
Total identifiable assets assumed | (549) | ||
Virginia Commonwealth Bank | |||
Identifiable assets acquired: | |||
Cash and due from banks | 2,356 | ||
Interest-bearing deposits | 12,342 | ||
Securities available-for-sale | 22,088 | ||
Restricted securities | 1,543 | ||
Loans receivable | 272,479 | ||
Deferred income taxes | 1,325 | ||
Premises and equipment | 3,333 | ||
Accrued interest receivable | 1,253 | ||
Other real estate owned | 3,113 | ||
Bank owned life insurance | 8,430 | ||
Mortgage servicing rights | 324 | ||
Other assets | 365 | ||
Total identified assets acquired | 328,951 | ||
Identifiable liabilities assumed: | |||
Noninterest-bearing deposits | 21,119 | ||
Savings and interest-bearing demand deposits | 124,640 | ||
Time deposits | 121,437 | ||
Federal Home Loan Bank advances | 25,000 | ||
Other liabilities | 1,525 | ||
Total identifiable liabilities assumed | 293,721 | ||
Total identifiable assets assumed | $ 35,230 |
Business Combination - Summary
Business Combination - Summary of Information about the PCI loan portfolio (Detail) - Virginia BanCorp $ in Thousands | Apr. 01, 2017USD ($) |
Certain Loans Acquired in Transfer Accounted for as Debt Securities Pci Loan Schedule [Line Items] | |
Purchased credit impaired loans - estimated fair value | $ 266,100 |
PCI Loans | |
Certain Loans Acquired in Transfer Accounted for as Debt Securities Pci Loan Schedule [Line Items] | |
Contractual principal and interest due | 8,303 |
Nonaccretable difference | 869 |
Expected cash flows | 7,434 |
Accretable yield | 1,354 |
Purchased credit impaired loans - estimated fair value | $ 6,080 |
Business Combination - Schedu59
Business Combination - Schedule of Pro Forma Financial Information (Detail) - Virginia Commonwealth Bank - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Net interest income | $ 27,169 | $ 27,342 |
Net income | $ 1,825 | $ 6,182 |
Business Combination - Summar60
Business Combination - Summary of impact of Certain Acquisition Accounting Adjustments (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Business Acquisition, Pro Forma Information [Line Items] | |||
(Loss) income before income taxes | $ (475) | $ 3,501 | |
Virginia Commonwealth Bank | |||
Business Acquisition, Pro Forma Information [Line Items] | |||
Loans | [1] | 1,907 | |
Core deposit intangible | [2] | (679) | |
Time deposits | [3] | 307 | |
Depreciation | [4] | (30) | |
(Loss) income before income taxes | $ 1,505 | ||
[1] | Loan discount accretion is included in the "Loans, including fees" section of "Interest Income" in the consolidated statements of operations. | ||
[2] | Premium amortization is included in "Other expense" section of "Non-Interest Expenses" in the consolidated statements of operations. | ||
[3] | Time deposit premium amortization is included in the "Deposits" section of "Interest Expense" in the consolidated statements of operations. | ||
[4] | Depreciation on the fair value mark up of fixed assets is included in "Occupancy expense" section of "Non-Interest Expense" in the consolidated statements of operations. |
Significant Accounting Polici61
Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2000Branch | |
Significant Accounting Policies [Line Items] | |||
Interest-Bearing Deposits in Banks, maturity period | 1 year | ||
Secured borrowings maturity period under repurchase agreements | 1 year | ||
Personal loans charged off period no later than period | 180 days | ||
Percentage of excess loan balance for watch category | 90.00% | ||
Impaired loans measurement | Impaired loans measured for impairment generally include (1) any loan risk rated Special Mention or worse where the borrower has filed for bankruptcy; (2) all loans risk rated Substandard or worse with balances of $400 thousand or more; and (3) all loans classified as a TDR. | ||
Loan Receivables | $ 766,296,000 | $ 161,033,000 | |
Number of branches purchased during the years 1994 through 2000 | Branch | 5 | ||
Deferred tax assets valuation allowance | $ 0 | ||
Number of ESOP unit | 2 | ||
Advertising expense | $ 664,000 | 197,000 | |
Accounting Standards Update 2018-02 | Retained Earnings | |||
Significant Accounting Policies [Line Items] | |||
Cumulative effect of change in retained earnings and AOCI | 188,000 | ||
Accounting Standards Update 2018-02 | Accumulated Other Comprehensive Income (Loss) | |||
Significant Accounting Policies [Line Items] | |||
Cumulative effect of change in retained earnings and AOCI | (188,000) | ||
Substandard | |||
Significant Accounting Policies [Line Items] | |||
Loan Receivables | $ 11,371,000 | 4,778,000 | |
Core Deposits | |||
Significant Accounting Policies [Line Items] | |||
Amortization of intangible assets, estimated useful life | 92 months | ||
Residential First Mortgages | |||
Significant Accounting Policies [Line Items] | |||
Minimum balance in order to assign a risk rating grade | $ 1,000,000 | 1,000,000 | |
Consumer and Other Loans | |||
Significant Accounting Policies [Line Items] | |||
Minimum balance in order to assign a risk rating grade | $ 250,000 | $ 250,000 | |
Minimum | |||
Significant Accounting Policies [Line Items] | |||
Number of days past due for a loan to remain on accrual status | 90 days | ||
Real estate properties acquired through, or in lieu of, loan foreclosure, valuation period | 2 years | ||
Minimum | Building | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 10 years | ||
Minimum | Furniture and Equipment | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 3 years | ||
Minimum | Substandard | |||
Significant Accounting Policies [Line Items] | |||
Loan Receivables | $ 400,000 | ||
Maximum | Building | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 40 years | ||
Maximum | Furniture and Equipment | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 10 years |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) | Apr. 01, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2000Branch |
Schedule of Goodwill and Purchased Intangible Assets [Line Items] | ||||
Number of branches purchased during the years 1994 through 2000 | Branch | 5 | |||
Goodwill | $ 10,374,000 | $ 2,808,000 | ||
Impairment of intangible assets | 0 | |||
Amortization expense | 679,000 | |||
Virginia BanCorp | ||||
Schedule of Goodwill and Purchased Intangible Assets [Line Items] | ||||
Acquisition of goodwill | $ 7,600,000 | |||
Goodwill | $ 10,400,000 | 2,800,000 | ||
Core Deposits | ||||
Schedule of Goodwill and Purchased Intangible Assets [Line Items] | ||||
Core deposit intangibles, estimated useful life | 92 months | |||
Amortization expense | $ 679,000 | $ 0 | ||
Core Deposits | Virginia BanCorp | ||||
Schedule of Goodwill and Purchased Intangible Assets [Line Items] | ||||
Acquisition of intangible assets | $ 3,700,000 |
Intangible Assets - Information
Intangible Assets - Information Concerning Intangible Assets With a Finite Life (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Goodwill and Purchased Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 4,669 | |
Accumulated Amortization | 679 | |
Net Carrying Value | 3,990 | |
Core Deposits | ||
Schedule of Goodwill and Purchased Intangible Assets [Line Items] | ||
Gross Carrying Value | 3,670 | |
Accumulated Amortization | 679 | |
Net Carrying Value | 2,991 | |
Other Intangible Assets | ||
Schedule of Goodwill and Purchased Intangible Assets [Line Items] | ||
Gross Carrying Value | 999 | $ 671 |
Net Carrying Value | $ 999 | $ 671 |
Intangible Assets - Estimated R
Intangible Assets - Estimated Remaining Amortization Expense (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Schedule of Goodwill and Purchased Intangible Assets [Line Items] | |
Total estimated amortization expense | $ 3,990 |
Core Deposits | |
Schedule of Goodwill and Purchased Intangible Assets [Line Items] | |
2,018 | 798 |
2,019 | 674 |
2,020 | 551 |
2,021 | 427 |
2,022 | 304 |
Thereafter | 237 |
Total estimated amortization expense | $ 2,991 |
Investment Securities - Aggrega
Investment Securities - Aggregate Amortized Cost and Fair Values of Available-for-Sale Securities Portfolio (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 77,773 | $ 51,929 |
Gross Unrealized Gains | 224 | 116 |
Gross Unrealized (Losses) | (844) | (872) |
Fair Value | 77,153 | 51,173 |
Corporate Bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 6,696 | 7,695 |
Gross Unrealized Gains | 23 | 14 |
Gross Unrealized (Losses) | (2) | (5) |
Fair Value | 6,717 | 7,704 |
US Government Agencies Agencies and Mortgage Backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 49,964 | 25,668 |
Gross Unrealized Gains | 6 | 53 |
Gross Unrealized (Losses) | (687) | (408) |
Fair Value | 49,283 | 25,313 |
State and Municipal Obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 21,113 | 18,566 |
Gross Unrealized Gains | 195 | 49 |
Gross Unrealized (Losses) | (155) | (459) |
Fair Value | $ 21,153 | $ 18,156 |
Investment Securities - Gross R
Investment Securities - Gross Realized Gains and Gross Realized Losses on Sales of Securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Gross realized gains | $ 7 | $ 445 |
Gross realized losses | (5) | (10) |
Net realized gains | 2 | 435 |
Aggregate proceeds | $ 17,937 | $ 19,509 |
Investment Securities - Aggre67
Investment Securities - Aggregate Amortized Cost and Market Values of Investment Securities Portfolio by Contractual Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Due in one year or less, Amortized Cost | $ 3,583 | |
Due after one year through five years, Amortized Cost | 37,746 | |
Due after five through ten years, Amortized Cost | 28,442 | |
Due after ten years, Amortized Cost | 8,002 | |
Amortized Cost | 77,773 | $ 51,929 |
Due in one year or less, Fair Value | 3,514 | |
Due after one year through five years, Fair Value | 37,425 | |
Due after five through ten years, Fair Value | 28,250 | |
Due after ten years, Fair Value | 7,964 | |
Fair Value | $ 77,153 | $ 51,173 |
Investment Securities - Additio
Investment Securities - Additional Information (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)Bond | Dec. 31, 2016USD ($)Bond | |
Schedule of Available-for-sale Securities [Line Items] | ||
Average yields (taxable equivalent) on securities | 3.02% | 3.09% |
Market value of securities | $ 19,400 | $ 19,100 |
Securities sold under repurchase agreements | 9,498 | 18,310 |
Company's investment in Federal Home Loan Bank stock | 3,700 | 1,900 |
Company's investment in Federal Reserve Bank stock | $ 1,900 | $ 580 |
Municipal Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Bonds with unrealized loss positions | Bond | 39 | |
US Government Agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Bonds with unrealized loss positions | Bond | 37 | |
Corporate Bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Bonds with unrealized loss positions | Bond | 1 | 1 |
Investment Securities - Unreali
Investment Securities - Unrealized Loss Positions (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | $ 28,304 | $ 34,816 |
Less than 12 months, Unrealized Loss | (370) | (860) |
12 months or more, Fair Value | 21,971 | 1,308 |
12 months or more, Unrealized Loss | (474) | (12) |
Fair Value, Total | 50,275 | 36,124 |
Total Unrealized Loss | (844) | (872) |
Corporate Bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 498 | 995 |
Less than 12 months, Unrealized Loss | (2) | (5) |
Fair Value, Total | 498 | 995 |
Total Unrealized Loss | (2) | (5) |
US Government Agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 25,053 | 20,933 |
Less than 12 months, Unrealized Loss | (353) | (396) |
12 months or more, Fair Value | 16,184 | 1,308 |
12 months or more, Unrealized Loss | (334) | (12) |
Fair Value, Total | 41,237 | 22,241 |
Total Unrealized Loss | (687) | (408) |
State and Municipal Obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 2,753 | 12,888 |
Less than 12 months, Unrealized Loss | (15) | (459) |
12 months or more, Fair Value | 5,787 | |
12 months or more, Unrealized Loss | (140) | |
Fair Value, Total | 8,540 | 12,888 |
Total Unrealized Loss | $ (155) | $ (459) |
Loans - Summary of Balances of
Loans - Summary of Balances of Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Summary of balances of loans | ||
Total loans | $ 766,296 | $ 385,009 |
Net unamortized deferred loan costs | 200 | 391 |
Allowance for loan losses | (7,770) | (3,863) |
Loans, net | 758,726 | 381,537 |
Construction, Land and Land Development | ||
Summary of balances of loans | ||
Total loans | 66,042 | 39,818 |
Farmland | ||
Summary of balances of loans | ||
Total loans | 923 | 1,023 |
Commercial Mortgages (Non-Owner Occupied) | ||
Summary of balances of loans | ||
Total loans | 146,757 | 35,343 |
Commercial Mortgages (Owner Occupied) | ||
Summary of balances of loans | ||
Total loans | 80,052 | 41,825 |
Residential First Mortgages | ||
Summary of balances of loans | ||
Total loans | 269,365 | 194,007 |
Residential Revolving and Junior Mortgages | ||
Summary of balances of loans | ||
Total loans | 46,498 | 26,425 |
Commercial and Industrial | ||
Summary of balances of loans | ||
Total loans | 114,093 | 43,024 |
Consumer and Other Loans | ||
Summary of balances of loans | ||
Total loans | $ 42,566 | $ 3,544 |
Loans - Additional Information
Loans - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Minimum | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Number of days past due for a loan to remain on accrual status | 90 days |
Loans - Recorded Investment in
Loans - Recorded Investment in Past Due and Non-accruing Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | $ 4,511 | $ 2,679 |
90 Days or More Past Due and Still Accruing | 48 | |
Nonaccruals | 6,496 | 5,300 |
Total Past Due and Nonaccruals | 11,055 | 7,979 |
Current | 755,241 | 377,030 |
Total Gross Loans | 766,296 | 385,009 |
Construction, Land and Land Development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | 261 | |
Nonaccruals | 1,237 | 623 |
Total Past Due and Nonaccruals | 1,498 | 623 |
Current | 64,544 | 39,195 |
Total Gross Loans | 66,042 | 39,818 |
Farmland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | 57 | |
90 Days or More Past Due and Still Accruing | 48 | |
Total Past Due and Nonaccruals | 48 | 57 |
Current | 875 | 966 |
Total Gross Loans | 923 | 1,023 |
Commercial Mortgages (Non-Owner Occupied) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | 449 | |
Total Past Due and Nonaccruals | 449 | |
Current | 146,308 | 35,343 |
Total Gross Loans | 146,757 | 35,343 |
Commercial Mortgages (Owner Occupied) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | 412 | 188 |
Nonaccruals | 1,752 | 2,270 |
Total Past Due and Nonaccruals | 2,164 | 2,458 |
Current | 77,888 | 39,367 |
Total Gross Loans | 80,052 | 41,825 |
Residential First Mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | 2,321 | 1,546 |
Nonaccruals | 1,942 | 2,155 |
Total Past Due and Nonaccruals | 4,263 | 3,701 |
Current | 265,102 | 190,306 |
Total Gross Loans | 269,365 | 194,007 |
Residential Revolving and Junior Mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | 449 | 480 |
Nonaccruals | 1,338 | 160 |
Total Past Due and Nonaccruals | 1,787 | 640 |
Current | 44,711 | 25,785 |
Total Gross Loans | 46,498 | 26,425 |
Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | 331 | 408 |
Nonaccruals | 92 | 92 |
Total Past Due and Nonaccruals | 423 | 500 |
Current | 113,670 | 42,524 |
Total Gross Loans | 114,093 | 43,024 |
Consumer and Other Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | 288 | |
Nonaccruals | 135 | |
Total Past Due and Nonaccruals | 423 | |
Current | 42,143 | 3,544 |
Total Gross Loans | $ 42,566 | $ 3,544 |
Loans - Summary of Recorded Inv
Loans - Summary of Recorded Investment of Purchased Impaired Loans (Detail) - PCI Loans $ in Thousands | Dec. 31, 2017USD ($) |
Financing Receivable, Impaired [Line Items] | |
30-89 Days Past Due | $ 510 |
90 Days or More Past Due and Still Accruing | 165 |
Nonaccruals | 0 |
Total Past Due and Nonaccruals | 675 |
Current | 5,150 |
Total Loans | 5,825 |
Construction, Land and Land Development | |
Financing Receivable, Impaired [Line Items] | |
Current | 1,405 |
Total Loans | 1,405 |
Commercial Mortgages (Non-Owner Occupied) | |
Financing Receivable, Impaired [Line Items] | |
Current | 171 |
Total Loans | 171 |
Commercial Mortgages (Owner Occupied) | |
Financing Receivable, Impaired [Line Items] | |
30-89 Days Past Due | 161 |
Total Past Due and Nonaccruals | 161 |
Current | 160 |
Total Loans | 321 |
Residential First Mortgages | |
Financing Receivable, Impaired [Line Items] | |
30-89 Days Past Due | 349 |
90 Days or More Past Due and Still Accruing | 141 |
Total Past Due and Nonaccruals | 490 |
Current | 3,320 |
Total Loans | 3,810 |
Residential Revolving and Junior Mortgages | |
Financing Receivable, Impaired [Line Items] | |
90 Days or More Past Due and Still Accruing | 20 |
Total Past Due and Nonaccruals | 20 |
Current | 29 |
Total Loans | 49 |
Consumer and Other Loans | |
Financing Receivable, Impaired [Line Items] | |
90 Days or More Past Due and Still Accruing | 4 |
Total Past Due and Nonaccruals | 4 |
Current | 65 |
Total Loans | $ 69 |
Allowance for Loan Losses - All
Allowance for Loan Losses - Allowance for Loan Losses by Portfolio Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning Balance | $ 3,863 | $ 4,223 |
Reclassification of allowance related to sold loans | (27) | |
(Charge-offs) | (1,477) | (946) |
Recoveries | 450 | 326 |
Provision (recovery) | 4,934 | 287 |
Ending Balance | 7,770 | 3,863 |
Individually evaluated for impairment | 1,094 | 895 |
Collectively evaluated for impairment | 6,676 | 2,968 |
Mortgage Loans on Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning Balance | 3,318 | 3,502 |
(Charge-offs) | (577) | (735) |
Recoveries | 91 | 254 |
Provision (recovery) | 1,032 | 297 |
Ending Balance | 3,864 | 3,318 |
Individually evaluated for impairment | 861 | 803 |
Collectively evaluated for impairment | 3,003 | 2,515 |
Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning Balance | 493 | 599 |
(Charge-offs) | (729) | (158) |
Recoveries | 263 | 61 |
Provision (recovery) | 851 | (9) |
Ending Balance | 878 | 493 |
Individually evaluated for impairment | 92 | 92 |
Collectively evaluated for impairment | 786 | 401 |
Consumer and Other Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning Balance | 52 | 122 |
Reclassification of allowance related to sold loans | (27) | |
(Charge-offs) | (171) | (53) |
Recoveries | 96 | 11 |
Provision (recovery) | 3,051 | (1) |
Ending Balance | 3,028 | 52 |
Individually evaluated for impairment | 141 | |
Collectively evaluated for impairment | $ 2,887 | $ 52 |
Allowance for Loan Losses - Add
Allowance for Loan Losses - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2017USD ($)Contract | Dec. 31, 2016USD ($)Contract | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Charge-offs | $ 1,477,000 | $ 946,000 |
Period of nonperforming loans | 90 days | |
Non-accruing loans excluded from impaired loan | 465,000 | |
Non-accruing loans accrued interest | $ 5,000 | |
Number of trouble debt restructurings | Contract | 18 | 16 |
Aggregate balance of trouble debt restructuring | $ 4,100,000 | $ 3,200,000 |
Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of days loans are past due | 90 days | |
Virginia BanCorp | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Charge-offs | $ 696,000 | |
Nonperforming | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of trouble debt restructurings | Contract | 11 | 9 |
Aggregate balance of trouble debt restructuring | $ 2,600,000 | $ 1,100,000 |
Residential First Mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Minimum balance in order to assign a risk rating grade | 1,000,000 | 1,000,000 |
Consumer and Other Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Charge-offs | 171,000 | 53,000 |
Minimum balance in order to assign a risk rating grade | $ 250,000 | $ 250,000 |
Allowance for Loan Losses - Loa
Allowance for Loan Losses - Loan Receivables Evaluated for Impairment Individually and Collectively by Segment (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | $ 9,107 | $ 10,415 |
Collectively evaluated for impairment | 751,364 | 374,594 |
Loans acquired with deteriorated credit quality | 5,825 | |
Total Gross Loans | 766,296 | 385,009 |
Mortgage Loans on Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 8,874 | 10,323 |
Collectively evaluated for impairment | 595,007 | 328,118 |
Loans acquired with deteriorated credit quality | 5,756 | |
Total Gross Loans | 609,637 | 338,441 |
Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 92 | 92 |
Collectively evaluated for impairment | 114,001 | 42,932 |
Total Gross Loans | 114,093 | 43,024 |
Consumer and Other Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 141 | |
Collectively evaluated for impairment | 42,356 | 3,544 |
Loans acquired with deteriorated credit quality | 69 | |
Total Gross Loans | $ 42,566 | $ 3,544 |
Allowance for Loan Losses - Cha
Allowance for Loan Losses - Changes in Accretable Yield for PCI Loans (Detail) - PCI Loans $ in Thousands | 9 Months Ended |
Dec. 31, 2017USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Balance Beginning | $ 1,354 |
Accretion | (267) |
Reclassifications from nonaccretable balance, net | 0 |
Other changes, net | 0 |
Balance Ending | $ 1,087 |
Allowance for Loan Losses - Int
Allowance for Loan Losses - Internal Risk Rating Grades (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
INTERNAL RISK RATING GRADES | ||
Loan Receivables | $ 766,296 | $ 161,033 |
Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 688,214 | 135,703 |
Watch | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 64,987 | 18,522 |
Special Mention | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 1,724 | 2,030 |
Substandard | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 11,371 | 4,778 |
Construction, Land and Land Development | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 66,042 | 39,818 |
Construction, Land and Land Development | Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 55,949 | 32,009 |
Construction, Land and Land Development | Watch | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 6,690 | 5,795 |
Construction, Land and Land Development | Special Mention | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 172 | 180 |
Construction, Land and Land Development | Substandard | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 3,231 | 1,834 |
Farmland | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 923 | 1,023 |
Farmland | Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 923 | 1,023 |
Commercial Mortgages (Non-Owner Occupied) | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 146,757 | 35,343 |
Commercial Mortgages (Non-Owner Occupied) | Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 140,625 | 30,639 |
Commercial Mortgages (Non-Owner Occupied) | Watch | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 5,931 | 4,184 |
Commercial Mortgages (Non-Owner Occupied) | Special Mention | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 272 | |
Commercial Mortgages (Non-Owner Occupied) | Substandard | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 201 | 248 |
Commercial Mortgages (Owner Occupied) | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 80,052 | 41,825 |
Commercial Mortgages (Owner Occupied) | Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 67,732 | 31,191 |
Commercial Mortgages (Owner Occupied) | Watch | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 10,076 | 6,652 |
Commercial Mortgages (Owner Occupied) | Special Mention | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 1,453 | |
Commercial Mortgages (Owner Occupied) | Substandard | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 2,244 | 2,529 |
Commercial and Industrial | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 114,093 | 43,024 |
Commercial and Industrial | Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 110,281 | 40,841 |
Commercial and Industrial | Watch | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 2,373 | 1,891 |
Commercial and Industrial | Special Mention | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 1,347 | 125 |
Commercial and Industrial | Substandard | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 92 | $ 167 |
Residential First Mortgages | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 269,365 | |
Residential First Mortgages | Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 256,614 | |
Residential First Mortgages | Watch | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 8,624 | |
Residential First Mortgages | Special Mention | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 205 | |
Residential First Mortgages | Substandard | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 3,922 | |
Residential Revolving and Junior Mortgages | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 46,498 | |
Residential Revolving and Junior Mortgages | Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 43,659 | |
Residential Revolving and Junior Mortgages | Watch | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 1,376 | |
Residential Revolving and Junior Mortgages | Substandard | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 1,463 | |
Consumer and Other Loans | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 42,566 | |
Consumer and Other Loans | Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 12,431 | |
Consumer and Other Loans | Watch | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 29,917 | |
Consumer and Other Loans | Substandard | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | $ 218 |
Allowance for Loan Losses - Per
Allowance for Loan Losses - Performing and Non Performing Loans (Detail) $ in Thousands | Dec. 31, 2016USD ($) | |
Performing and non performing loans | ||
Loan receivables | $ 223,976 | |
Performing | ||
Performing and non performing loans | ||
Loan receivables | 221,661 | |
Nonperforming | ||
Performing and non performing loans | ||
Loan receivables | 2,315 | |
Residential First Mortgages | ||
Performing and non performing loans | ||
Loan receivables | 194,007 | [1] |
Residential First Mortgages | Performing | ||
Performing and non performing loans | ||
Loan receivables | 191,852 | [1] |
Residential First Mortgages | Nonperforming | ||
Performing and non performing loans | ||
Loan receivables | 2,155 | [1] |
Residential Revolving and Junior Mortgages | ||
Performing and non performing loans | ||
Loan receivables | 26,425 | [2] |
Residential Revolving and Junior Mortgages | Performing | ||
Performing and non performing loans | ||
Loan receivables | 26,265 | [2] |
Residential Revolving and Junior Mortgages | Nonperforming | ||
Performing and non performing loans | ||
Loan receivables | 160 | [2] |
Consumer and Other Loans | ||
Performing and non performing loans | ||
Loan receivables | 3,544 | [3] |
Consumer and Other Loans | Performing | ||
Performing and non performing loans | ||
Loan receivables | $ 3,544 | [3] |
[1] | Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $3.3 million as of December 31, 2016. | |
[2] | Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $1.1 million as of December 31, 2016. | |
[3] | No Consumer Loans had been assigned a risk rating grade of Substandard as of December 31, 2016. |
Allowance for Loan Losses - P80
Allowance for Loan Losses - Performing and Non Performing Loans (Parenthetical) (Detail) $ in Thousands | Dec. 31, 2016USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rating grade totaled | $ 223,976 | |
Residential First Mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rating grade totaled | 194,007 | [1] |
Residential First Mortgages | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rating grade totaled | 3,300 | |
Residential Revolving and Junior Mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rating grade totaled | 26,425 | [2] |
Residential Revolving and Junior Mortgages | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rating grade totaled | 1,100 | |
Consumer and Other Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rating grade totaled | 3,544 | [3] |
Consumer and Other Loans | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Risk rating grade totaled | $ 0 | |
[1] | Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $3.3 million as of December 31, 2016. | |
[2] | Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $1.1 million as of December 31, 2016. | |
[3] | No Consumer Loans had been assigned a risk rating grade of Substandard as of December 31, 2016. |
Allowance for Loan Losses - Com
Allowance for Loan Losses - Company's Recorded Investment and Customers' Unpaid Principal Balances for Impaired Loans, with Associated Allowance Amount (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
With no related allowance, Recorded Investment | $ 4,523 | $ 6,746 | |
With no related allowance, Customers' Unpaid Principal Balance | 5,251 | 7,140 | |
With an allowance recorded, Recorded Investment | 4,584 | 3,669 | |
With an allowance recorded, Customers' Unpaid Principal Balance | 4,694 | 3,738 | |
With an allowance recorded, Related Allowance | 1,094 | 895 | |
Total Impaired Loans, Recorded Investment | 9,107 | 10,415 | |
Total Impaired Loans, Customers' Unpaid Principal Balance | 9,945 | 10,878 | |
Total Impaired Loans, Related Allowance | 1,094 | 895 | |
With no related allowance, Average Recorded Investment | 4,948 | 6,189 | |
With no related allowance, Interest Income Recognized | 124 | 149 | |
With an allowance recorded, Average Recorded Investment | 4,556 | 3,349 | |
With an allowance recorded, Interest Income Recognized | 159 | 127 | |
Total, Average Recorded Investment | 9,504 | 9,538 | |
Total, Interest Income Recognized | 283 | 276 | |
Construction, Land and Land Development | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
With no related allowance, Recorded Investment | 900 | 1,531 | |
With no related allowance, Customers' Unpaid Principal Balance | 1,378 | 1,539 | |
With an allowance recorded, Recorded Investment | 550 | 243 | |
With an allowance recorded, Customers' Unpaid Principal Balance | 621 | 286 | |
With an allowance recorded, Related Allowance | 137 | 145 | |
Total Impaired Loans, Recorded Investment | 1,450 | 1,774 | |
Total Impaired Loans, Customers' Unpaid Principal Balance | 1,999 | 1,825 | |
Total Impaired Loans, Related Allowance | 137 | 145 | |
With no related allowance, Average Recorded Investment | 1,282 | 1,316 | |
With no related allowance, Interest Income Recognized | 66 | 55 | |
With an allowance recorded, Average Recorded Investment | 572 | 253 | |
With an allowance recorded, Interest Income Recognized | 4 | 5 | |
Total, Average Recorded Investment | 1,854 | 1,569 | |
Total, Interest Income Recognized | 70 | 60 | |
Residential First Mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
With no related allowance, Recorded Investment | 1,488 | 2,112 | |
With no related allowance, Customers' Unpaid Principal Balance | 1,488 | 2,176 | |
With an allowance recorded, Recorded Investment | 1,914 | 1,951 | |
With an allowance recorded, Customers' Unpaid Principal Balance | 1,914 | 1,951 | |
With an allowance recorded, Related Allowance | 367 | 367 | |
Total Impaired Loans, Recorded Investment | 3,402 | 4,063 | |
Total Impaired Loans, Customers' Unpaid Principal Balance | 3,402 | 4,127 | |
Total Impaired Loans, Related Allowance | 367 | 367 | |
With no related allowance, Average Recorded Investment | 1,449 | 1,956 | |
With no related allowance, Interest Income Recognized | 21 | 14 | |
With an allowance recorded, Average Recorded Investment | 1,932 | 1,956 | |
With an allowance recorded, Interest Income Recognized | 93 | 90 | |
Total, Average Recorded Investment | 3,381 | 3,912 | |
Total, Interest Income Recognized | 114 | 104 | |
Residential Revolving and Junior Mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
With no related allowance, Recorded Investment | [1] | 414 | 995 |
With no related allowance, Customers' Unpaid Principal Balance | [1] | 414 | 999 |
With an allowance recorded, Recorded Investment | [1] | 1,340 | 544 |
With an allowance recorded, Customers' Unpaid Principal Balance | [1] | 1,340 | 546 |
With an allowance recorded, Related Allowance | [1] | 162 | 199 |
Total Impaired Loans, Recorded Investment | [1] | 1,754 | 1,539 |
Total Impaired Loans, Customers' Unpaid Principal Balance | [1] | 1,754 | 1,545 |
Total Impaired Loans, Related Allowance | [1] | 162 | 199 |
With no related allowance, Average Recorded Investment | [1] | 417 | 808 |
With no related allowance, Interest Income Recognized | [1] | 5 | 38 |
With an allowance recorded, Average Recorded Investment | [1] | 1,360 | 218 |
With an allowance recorded, Interest Income Recognized | [1] | 44 | 9 |
Total, Average Recorded Investment | [1] | 1,777 | 1,026 |
Total, Interest Income Recognized | [1] | 49 | 47 |
Commercial Mortgages (Non-Owner Occupied) | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
With no related allowance, Recorded Investment | 248 | ||
With no related allowance, Customers' Unpaid Principal Balance | 248 | ||
Total Impaired Loans, Recorded Investment | 248 | ||
Total Impaired Loans, Customers' Unpaid Principal Balance | 248 | ||
With no related allowance, Average Recorded Investment | 251 | ||
With no related allowance, Interest Income Recognized | 15 | ||
Total, Average Recorded Investment | 251 | ||
Total, Interest Income Recognized | 15 | ||
Commercial Mortgages (Owner Occupied) | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
With no related allowance, Recorded Investment | 1,721 | 1,860 | |
With no related allowance, Customers' Unpaid Principal Balance | 1,971 | 2,178 | |
With an allowance recorded, Recorded Investment | 547 | 839 | |
With an allowance recorded, Customers' Unpaid Principal Balance | 586 | 854 | |
With an allowance recorded, Related Allowance | 195 | 92 | |
Total Impaired Loans, Recorded Investment | 2,268 | 2,699 | |
Total Impaired Loans, Customers' Unpaid Principal Balance | 2,557 | 3,032 | |
Total Impaired Loans, Related Allowance | 195 | 92 | |
With no related allowance, Average Recorded Investment | 1,800 | 1,858 | |
With no related allowance, Interest Income Recognized | 32 | 27 | |
With an allowance recorded, Average Recorded Investment | 572 | 819 | |
With an allowance recorded, Interest Income Recognized | 12 | 22 | |
Total, Average Recorded Investment | 2,372 | 2,677 | |
Total, Interest Income Recognized | 44 | 49 | |
Commercial and Industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
With an allowance recorded, Recorded Investment | 92 | 92 | |
With an allowance recorded, Customers' Unpaid Principal Balance | 92 | 101 | |
With an allowance recorded, Related Allowance | 92 | 92 | |
Total Impaired Loans, Recorded Investment | 92 | 92 | |
Total Impaired Loans, Customers' Unpaid Principal Balance | 92 | 101 | |
Total Impaired Loans, Related Allowance | 92 | 92 | |
With an allowance recorded, Average Recorded Investment | 92 | 103 | |
With an allowance recorded, Interest Income Recognized | 1 | ||
Total, Average Recorded Investment | 92 | 103 | |
Total, Interest Income Recognized | $ 1 | ||
Consumer and Other Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
With an allowance recorded, Recorded Investment | 141 | ||
With an allowance recorded, Customers' Unpaid Principal Balance | 141 | ||
With an allowance recorded, Related Allowance | 141 | ||
Total Impaired Loans, Recorded Investment | 141 | ||
Total Impaired Loans, Customers' Unpaid Principal Balance | 141 | ||
Total Impaired Loans, Related Allowance | 141 | ||
With an allowance recorded, Average Recorded Investment | 28 | ||
With an allowance recorded, Interest Income Recognized | 6 | ||
Total, Average Recorded Investment | 28 | ||
Total, Interest Income Recognized | $ 6 | ||
[1] | Junior mortgages include equity lines. |
Allowance for Loan Losses - Sum
Allowance for Loan Losses - Summary of Troubled Debt Restructurings (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)Loan | Dec. 31, 2016USD ($)Loan | ||
Residential First Mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Loans | Loan | [1] | 1 | 1 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 820 | $ 244 |
Post-Modification Outstanding Recorded Investment | [1] | $ 820 | $ 244 |
Consumer and Other Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Loans | Loan | [1] | 1 | |
Pre-Modification Outstanding Recorded Investment | [1] | $ 147 | |
Post-Modification Outstanding Recorded Investment | [1] | $ 147 | |
Commercial Mortgages (Owner Occupied) | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Subsequently defaulted number of loans | Loan | 0 | 0 | |
Subsequently defaulted recorded investment | $ 0 | $ 0 | |
[1] | Modifications were an extention of the loan terms. |
Other Real Estate Owned Net - N
Other Real Estate Owned Net - Net of Valuation Allowances for Losses on Foreclosed Assets (Detail) (Detail) - Valuation Allowance, Other Real Estate Owned - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Real Estate Owned And Other Repossessed Assets [Line Items] | ||
Balance, beginning of year | $ 473 | $ 621 |
Provision for losses | 245 | 53 |
Charge-offs | (190) | (201) |
Balance, end of period | $ 528 | $ 473 |
Other Real Estate Owned Net - C
Other Real Estate Owned Net - Components of Expenses Applicable to Foreclosed Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Real Estate Acquired Through Foreclosure Or Similar Procedures [Line Items] | ||
Net (gain) loss on sales of real estate | $ (23) | $ 74 |
Provision for losses | 245 | 53 |
Operating expenses, net of income | 138 | 93 |
Total expenses | $ 360 | $ 220 |
Other Real Estate Owned, Net -
Other Real Estate Owned, Net - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)Property | Dec. 31, 2016USD ($)Property | Apr. 30, 2015USD ($) | |
Other Real Estate [Line Items] | |||
No. of Properties | 29 | 14 | |
Other assets | |||
Other Real Estate [Line Items] | |||
Properties marketed for sale, value | $ | $ 403 | ||
Residential | |||
Other Real Estate [Line Items] | |||
Residential properties collateralized with loan | 0 | 0 | |
No. of Properties | 5 | 2 | |
Residential | Other assets | |||
Other Real Estate [Line Items] | |||
Properties marketed for sale, value | $ | $ 708 | $ 708 | |
No. of Properties | 1 | 1 |
Other Real Estate Owned Net - S
Other Real Estate Owned Net - Summary of Properties Included in Other Real Estate Owned (OREO) (Detail) $ in Thousands | Dec. 31, 2017USD ($)Property | Dec. 31, 2016USD ($)Property |
Real Estate Properties [Line Items] | ||
No. of Properties | Property | 29 | 14 |
Carrying Value | $ | $ 4,284 | $ 2,494 |
Residential | ||
Real Estate Properties [Line Items] | ||
No. of Properties | Property | 5 | 2 |
Carrying Value | $ | $ 443 | $ 891 |
Land lots | ||
Real Estate Properties [Line Items] | ||
No. of Properties | Property | 20 | 7 |
Carrying Value | $ | $ 3,223 | $ 547 |
Convenience Stores | ||
Real Estate Properties [Line Items] | ||
No. of Properties | Property | 1 | 1 |
Carrying Value | $ | $ 55 | $ 59 |
Restaurant | ||
Real Estate Properties [Line Items] | ||
No. of Properties | Property | 1 | 1 |
Carrying Value | $ | $ 36 | $ 55 |
Commercial properties | ||
Real Estate Properties [Line Items] | ||
No. of Properties | Property | 2 | 3 |
Carrying Value | $ | $ 527 | $ 942 |
Premises and Equipment Net - Co
Premises and Equipment Net - Components of Premises and Equipment Included in Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | $ 30,522 | $ 24,894 |
Less accumulated depreciation | (12,656) | (14,050) |
Premises and equipment, net | 17,866 | 10,844 |
Land and Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | 4,762 | 2,350 |
Buildings and Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | 16,634 | 12,221 |
Furniture and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | $ 9,126 | $ 10,323 |
Premises and Equipment Net - Ad
Premises and Equipment Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation expense | $ 1.4 | $ 1.1 |
Deposits - Additional Informati
Deposits - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Cash And Short Term Investments [Line Items] | ||
Aggregate amount of time deposits in denominations of $250000 or more | $ 58,700 | $ 19,200 |
Overdraft demand deposits reclassified to loans | 80 | 51 |
Wholesale deposits | $ 1,000 | $ 8,500 |
Deposits - Schedule of Time Dep
Deposits - Schedule of Time Deposits Maturities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Investments [Line Items] | ||
2,018 | $ 235,751 | |
2,019 | 30,986 | |
2,020 | 54,022 | |
2,021 | 25,991 | |
2,022 | 12,239 | |
Thereafter | 0 | |
Time deposits | $ 358,989 | $ 128,050 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2017USD ($)hplan | Dec. 31, 2016USD ($) | |
Defined Contribution Plan Disclosure [Line Items] | ||
Conditional age-1 for availing plan | 55 years | |
Conditional age-2 for availing plan | 65 years | |
Conditional years of service -1 for availing plan | 10 years | |
Conditional years of service-2 for availing plan | 5 years | |
Fixed Income Funds | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Targeted asset allocation percentage | 40.00% | |
Equity Funds | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Targeted asset allocation percentage | 60.00% | |
401 (k) Retirement Plan | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Number of retirement plan | plan | 2 | |
Pension Plan, Defined Benefit | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 3,300,000 | $ 3,400,000 |
Expected employer contribution | 0 | |
Other Postretirement Benefit Plan, Defined Benefit | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Expected employer contribution | 0 | |
Expected employer contribution | $ 0 | |
Termination date of plan | Mar. 31, 2018 | |
Employer contributions | $ 6,000 | 8,000 |
Surviving Plan | 401 (k) Retirement Plan | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Employer contributions | $ 277,000 | $ 193,000 |
Surviving Plan | 401 (k) Retirement Plan | First 3% of Each Participant's Contributions | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Matching contribution to defined contribution plan | 100.00% | |
Percentage of employee's contributions | 3.00% | |
Surviving Plan | 401 (k) Retirement Plan | Second 3% of Each Participant's Contributions | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Matching contribution to defined contribution plan | 50.00% | |
Percentage of employee's contributions | 3.00% | |
Acquired Plan | 401 (k) Retirement Plan | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Matching contribution to defined contribution plan | 100.00% | |
Acquired Plan | 401 (k) Retirement Plan | Maximum | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Percentage of employee's contributions | 4.00% | |
Acquired Plan | 401 (k) Retirement Plan | Minimum | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Number of hours of service eligible for defined contribution plan | h | 1,000 |
Employee Benefit Plans - Change
Employee Benefit Plans - Change in Benefit Obligation (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Plan, Defined Benefit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Benefit obligation, beginning of year | $ 3,398 | $ 3,488 |
Interest cost | 121 | 134 |
Actuarial loss (gain) | 323 | 17 |
Benefit payments | (581) | (279) |
Settlement loss | 12 | 38 |
Benefit obligation, end of year | 3,273 | 3,398 |
Other Postretirement Benefit Plan, Defined Benefit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Benefit obligation, beginning of year | 540 | 668 |
Service cost | 22 | 22 |
Interest cost | 21 | 28 |
Actuarial loss (gain) | (120) | (170) |
Benefit payments | (6) | (8) |
Benefit obligation, end of year | $ 457 | $ 540 |
Employee Benefit Plans - Chan93
Employee Benefit Plans - Change in Plan Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets, beginning of year | $ 2,690 | |
Fair value of plan assets, end of year | 2,465 | $ 2,690 |
Pension Plan, Defined Benefit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets, beginning of year | 2,690 | 2,806 |
Actual return on plan assets | 356 | 163 |
Benefits payments | (581) | (279) |
Fair value of plan assets, end of year | 2,465 | 2,690 |
Other Postretirement Benefit Plan, Defined Benefit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Employer contributions | 6 | 8 |
Benefits payments | $ (6) | $ (8) |
Employee Benefit Plans - Define
Employee Benefit Plans - Defined Benefit Plan (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Pension Plan, Defined Benefit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Funded status at the end of the year | $ (808) | $ (708) |
Other Postretirement Benefit Plan, Defined Benefit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Funded status at the end of the year | $ (457) | $ (540) |
Employee Benefit Plans - Amount
Employee Benefit Plans - Amounts Recognized in Accumulated Other Comprehensive Loss (Income) (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Pension Plan, Defined Benefit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Net loss (gain) | $ 1,187 | $ 1,316 |
Prior service cost | 0 | 0 |
Net obligation at transition | 0 | 0 |
Amount recognized | 1,187 | 1,316 |
Other Postretirement Benefit Plan, Defined Benefit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Net loss (gain) | (344) | (234) |
Prior service cost | 0 | 0 |
Net obligation at transition | 0 | 0 |
Amount recognized | $ (344) | $ (234) |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Gain) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Plan, Defined Benefit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Interest cost | $ 121 | $ 134 |
Expected (return) on plan assets | (167) | (189) |
Amortization of prior service cost | 0 | 0 |
Recognized net loss due to settlement | 195 | 90 |
Recognized net actuarial loss | 81 | 77 |
Net periodic benefit (gain) cost | 230 | 112 |
Other Postretirement Benefit Plan, Defined Benefit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | 22 | 22 |
Interest cost | 21 | 28 |
Amortization of prior service cost | 0 | 0 |
Amortization of net obligation at transition | (11) | |
Net periodic benefit (gain) cost | $ 32 | $ 50 |
Employee Benefit Plans - Other
Employee Benefit Plans - Other Changes in Plan Assets and Benefit Obligations Recognized in Accumulated Other Comprehensive (Income) Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Plan, Defined Benefit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Net (gain) loss | $ (130) | $ (86) |
Amortization of prior service cost | 0 | 0 |
Amortization of net obligation at transition | 0 | 0 |
Total recognized in other comprehensive loss/(income) | (130) | (86) |
Total recognized in net periodic benefit cost and other comprehensive loss/(income) | 100 | 26 |
Other Postretirement Benefit Plan, Defined Benefit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Net (gain) loss | (109) | (170) |
Amortization of prior service cost | 0 | 0 |
Amortization of net obligation at transition | 0 | 0 |
Total recognized in other comprehensive loss/(income) | (109) | (170) |
Total recognized in net periodic benefit cost and other comprehensive loss/(income) | $ (77) | $ (120) |
Employee Benefit Plans - Weight
Employee Benefit Plans - Weighted-average Assumptions (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Plan, Defined Benefit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate used for Net Periodic Pension Cost | 4.00% | 4.25% |
Discount Rate used for Disclosure | 3.50% | 4.00% |
Expected return on plan assets | 7.25% | 7.50% |
Rate of compensation increase | 0.00% | 0.00% |
Rate of compensation increase for net periodic pension cost | 0.00% | 0.00% |
Expected future interest crediting rate | 3.00% | 3.00% |
Other Postretirement Benefit Plan, Defined Benefit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate used for Net Periodic Pension Cost | 4.00% | 4.25% |
Discount Rate used for Disclosure | 3.50% | 4.00% |
Rate of compensation increase | 0.00% | 0.00% |
Rate of compensation increase for net periodic pension cost | 0.00% | 0.00% |
Employee Benefit Plans - Estima
Employee Benefit Plans - Estimated Future Benefit Payments for Pension and Postretirement Plans (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Pension Plan, Defined Benefit | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2,018 | $ 316 |
2,019 | 321 |
2,020 | 265 |
2,021 | 206 |
2,022 | 195 |
2023 - 2027 | 1,417 |
Other Postretirement Benefit Plan, Defined Benefit | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2,018 | 6 |
2,019 | 7 |
2,020 | 7 |
2,021 | 7 |
2,022 | 6 |
2023 - 2027 | $ 28 |
Financial Instruments With O100
Financial Instruments With Off-Balance Sheet Risk - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Loan Purchase Commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Outstanding loan commitment under financial instrument off balance sheet risk | $ 144,200 | $ 38,200 |
Unused lines of Credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Outstanding loan commitment under financial instrument off balance sheet risk | $ 447 | $ 452 |
Restrictions on Cash Due From B
Restrictions on Cash Due From Banks - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Federal Reserve | $ 13,500 | $ 25 |
Other Borrowings - Additional I
Other Borrowings - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Short-term Debt [Line Items] | ||
Securities sold under repurchase agreements | $ 9,498 | $ 18,310 |
Securities sold under agreements to repurchase, average rates | 0.17% | 0.16% |
Unused lines of Credit | ||
Short-term Debt [Line Items] | ||
Unused lines of credit | $ 24,500 | $ 21,500 |
Other Borrowings - Short-term B
Other Borrowings - Short-term Borrowings (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Balance outstanding at period-end | $ 9,498 | $ 18,310 |
Maximum balance at any month end during the year | 17,091 | 18,310 |
Average balance for the period | $ 11,001 | $ 9,299 |
Weighted average rate for the period | 0.17% | 0.16% |
Weighted average rate on borrowings at period end | 0.21% | 0.13% |
Estimated fair value at year end | $ 9,498 | $ 18,310 |
Debt - Additional Information (
Debt - Additional Information (Detail) | May 28, 2015USD ($) | Sep. 30, 2017USD ($)Loan | Jun. 30, 2017USD ($)Loan | Jan. 31, 2017USD ($)Loan | Dec. 31, 2017USD ($)Loan | Mar. 05, 2018USD ($) | Dec. 31, 2016USD ($)Loan |
Debt Instrument [Line Items] | |||||||
Federal Home Loan Bank advances | $ 70,000,000 | $ 35,000,000 | |||||
Number of FHLB debt advances | Loan | 2 | 5 | |||||
Number of payments for FHLB debt advances | Loan | 3 | 3 | 3 | ||||
Repayment on Federal Home Loan Bank advances | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | ||||
Current Interest Rate | 1.68% | ||||||
Immediate available credit | $ 162,800,000 | ||||||
Total line of credit | $ 238,800,000 | ||||||
Weighted average interest rate | 1.68% | 1.49% | |||||
Subordinated Debt Due May 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Date | May 28, 2025 | ||||||
Current Interest Rate | 6.50% | 6.50% | 6.50% | ||||
Debt instrument, face amount | $ 7,000,000 | $ 7,000,000 | $ 7,000,000 | ||||
Debt instrument, frequency of payment | 1st of March and September of each year, commencing September 1, 2015 | ||||||
Debt instrument integral multiple principal amount | $ 1,000 | ||||||
Debt instrument redemption period start date | May 28, 2020 | ||||||
Fixed Rate Credit | Federal Home Loan Bank Advances Six | |||||||
Debt Instrument [Line Items] | |||||||
Number of payments for FHLB debt advances | Loan | 1 | ||||||
Repayment on Federal Home Loan Bank advances | $ 10,000,000 | ||||||
Date | Feb. 28, 2017 | ||||||
Fixed Rate Credit | Federal Home Loan Bank Advances Two | |||||||
Debt Instrument [Line Items] | |||||||
Federal Home Loan Bank advances | $ 60,000,000 | ||||||
Date | Jan. 2, 2018 | ||||||
Current Interest Rate | 1.34% | ||||||
One Point Forty Two Percent Fixed Rate Credit | Federal Home Loan Bank Advances Two | |||||||
Debt Instrument [Line Items] | |||||||
Federal Home Loan Bank advances | $ 60,000,000 | ||||||
One Point Forty Two Percent Fixed Rate Credit | Federal Home Loan Bank Advances Seven | |||||||
Debt Instrument [Line Items] | |||||||
Date | Feb. 2, 2018 | ||||||
Current Interest Rate | 1.42% | ||||||
One Point Forty Four Percent Fixed Rate Credit | Federal Home Loan Bank Advances Six | |||||||
Debt Instrument [Line Items] | |||||||
Federal Home Loan Bank advances | $ 60,000,000 | ||||||
One Point Forty Four Percent Fixed Rate Credit | Federal Home Loan Bank Advances Seven | |||||||
Debt Instrument [Line Items] | |||||||
Date | Mar. 5, 2018 | ||||||
Current Interest Rate | 1.44% | ||||||
One Point Sixty Three Percent Fixed Rate Credit | Federal Home Loan Bank Advances Seven | |||||||
Debt Instrument [Line Items] | |||||||
Date | Apr. 2, 2018 | ||||||
One Point Sixty Three Percent Fixed Rate Credit | Federal Home Loan Bank Advances Seven | Scenario, Forecast | |||||||
Debt Instrument [Line Items] | |||||||
Federal Home Loan Bank advances | $ 50,000,000 | ||||||
Current Interest Rate | 1.63% |
Debt - Advances of Debt (Detail
Debt - Advances of Debt (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Federal Home Loan Bank advances | $ 70,000 | $ 35,000 |
Interest Rate | 1.68% | |
Adjustable Rate Hybrid | Federal Home Loan Bank Advances One | ||
Debt Instrument [Line Items] | ||
Federal Home Loan Bank advances | $ 10,000 | |
Originated | Apr. 12, 2013 | |
Interest Rate | 3.2575% | |
Date | Apr. 13, 2020 | |
Fixed Rate Credit | Federal Home Loan Bank Advances Two | ||
Debt Instrument [Line Items] | ||
Federal Home Loan Bank advances | $ 60,000 | |
Originated | Dec. 1, 2017 | |
Interest Rate | 1.34% | |
Date | Jan. 2, 2018 |
Subordinated Debt (Detail)
Subordinated Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | May 28, 2015 |
Debt and Financial Instruments [Line Items] | |||
Subordinated debt | $ 6,877 | $ 6,860 | |
Subordinated Debt Due May 2025 | |||
Debt and Financial Instruments [Line Items] | |||
Debt instrument, face amount | 7,000 | 7,000 | $ 7,000 |
Less: Issuance costs | (123) | (140) | |
Subordinated debt | $ 6,877 | $ 6,860 |
Subordinated Debt (Parenthetica
Subordinated Debt (Parenthetical) (Detail) | Dec. 31, 2017 | Dec. 31, 2016 | May 28, 2015 |
Debt and Financial Instruments [Line Items] | |||
Debt instrument, coupon percentage | 1.68% | ||
Subordinated Debt Due May 2025 | |||
Debt and Financial Instruments [Line Items] | |||
Debt instrument, coupon percentage | 6.50% | 6.50% | 6.50% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2018 | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Income Tax Disclosure [Line Items] | ||||
Statutory rate | 34.00% | 34.00% | ||
Deferred tax assets | $ 1,300 | |||
Number of equity investments in housing funds | 3 | 3 | ||
Other assets | $ 7,206 | $ 7,206 | $ 4,099 | |
investments and related tax benefits expected year | 2,030 | |||
Investment tax credit and other benefits | $ 68 | $ 17 | ||
Additional capital calls expected for investment funded | 1,500 | 1,500 | ||
Scenario, Plan [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Statutory rate | 21.00% | |||
Investment | ||||
Income Tax Disclosure [Line Items] | ||||
Other assets | $ 1,400 | $ 1,400 |
Income Taxes - Expense (Benefit
Income Taxes - Expense (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Expenses [Line Items] | ||
Current | $ 362 | $ 1,054 |
Deferred | 435 | (88) |
Income Tax Expense (Benefit), Total | $ 797 | $ 966 |
Income Taxes - Summary of Reaso
Income Taxes - Summary of Reasons for Differences Between Statutory Federal Income Tax Rates and Effective Tax Rates (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Statutory Federal Tax Rate [Line Items] | ||
Statutory rate | 34.00% | 34.00% |
Increase (decrease) resulting from: | ||
Tax exempt interest | 51.10% | (6.10%) |
Bank owned life insurance | 33.90% | (2.70%) |
Merger costs | (15.00%) | 2.50% |
The Tax Act | (283.10%) | 0.00% |
Other, net | 11.40% | (0.10%) |
Effective Income Tax Rate, Total | (167.80%) | 27.60% |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets | ||
Allowance for loan losses | $ 1,632 | $ 908 |
Interest on non-accrual loans | 58 | 130 |
Other real estate | 433 | 446 |
Pension plan | 170 | 242 |
Postretirement benefits | 96 | 184 |
Unrealized losses (gains) on available-for-sale securities | 130 | 268 |
Deferred compensation | 189 | 191 |
Stock-based compensation | 26 | 30 |
Alternative Minimum Tax Credit | 134 | |
Net discount on loan portfolios acquired in merger with Virginia Bancorp | 1,576 | |
Premium on time deposits acquired in merger with Virginia Bancorp | 89 | |
Other | 212 | 27 |
Total deferred tax assets | 4,745 | 2,426 |
Deferred tax liabilities | ||
Depreciation | (69) | (126) |
Amortization of goodwill | (1,218) | (955) |
Net deferred loan fees and costs | 65 | (133) |
Premium on fixed assets acquired in merger with Virginia Bancorp | (561) | |
Recapture of bad debts experience reserve | (229) | |
Other | (391) | (58) |
Total deferred tax liabilities | (2,403) | (1,272) |
Net deferred tax assets | $ 2,342 | $ 1,154 |
Regulatory Requirements and 112
Regulatory Requirements and Restrictions - Additional Information (Detail) | Jan. 01, 2019 | Jan. 01, 2016 | Jan. 01, 2015 | Jul. 31, 2013 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 6.00% | 4.00% | ||
Total Risk Based Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 8.00% | |||
Leverage Ratio (Total Assets), Minimum Capital Requirement Ratio | 4.00% | |||
Initial Capital Requirement Phase-In Period | 4 years | |||
New Capital Conservation Buffer Requirement (to Risk Weighted Assets), Ratio | 0.625% | |||
Common Stock | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 4.50% | |||
Scenario, Forecast | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 8.50% | |||
Total Risk Based Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 10.50% | |||
Leverage Ratio (Total Assets), Minimum Capital Requirement Ratio | 4.00% | |||
New Capital Conservation Buffer Requirement (to Risk Weighted Assets), Ratio | 2.50% | |||
Scenario, Forecast | Common Stock | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 7.00% |
Regulatory Requirements and 113
Regulatory Requirements and Restrictions - Schedule of Bank's Actual Capital Amounts and Ratios (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2015 | Jul. 31, 2013 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Total Risk Based Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 8.00% | |||
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 6.00% | 4.00% | ||
Tier 1 Capital (to Average Assets), Minimum Capital Requirement Ratio | 4.00% | |||
Common Stock | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 4.50% | |||
Consolidated Entities | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Total Risk Based Capital (to Risk Weighted Assets), Actual Amount | $ 120,091 | $ 51,810 | ||
Total Risk Based Capital (to Risk Weighted Assets), Actual Ratio | 16.24% | 15.02% | ||
Total Risk Based Capital (to Risk Weighted Assets), Minimum Capital Requirement Amount | $ 59,150 | $ 27,600 | ||
Total Risk Based Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 8.00% | 8.00% | ||
Tier 1 Capital (to Risk Weighted Assets), Actual Amount | $ 105,444 | $ 41,087 | ||
Tier 1 Capital (to Risk Weighted Assets), Actual Ratio | 14.26% | 11.91% | ||
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement Amount | $ 44,363 | $ 20,700 | ||
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 6.00% | 6.00% | ||
Tier 1 Capital (to Average Assets), Actual Amount | $ 105,444 | $ 41,087 | ||
Tier 1 Capital (to Average Assets), Actual Ratio | 10.99% | 8.66% | ||
Tier 1 Capital (to Average Assets), Minimum Capital Requirement Amount | $ 38,382 | $ 18,967 | ||
Tier 1 Capital (to Average Assets), Minimum Capital Requirement Ratio | 4.00% | 4.00% | ||
Consolidated Entities | Common Stock | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Total Risk Based Capital (to Risk Weighted Assets), Actual Amount | $ 105,444 | $ 41,087 | ||
Total Risk Based Capital (to Risk Weighted Assets), Actual Ratio | 14.26% | 11.91% | ||
Total Risk Based Capital (to Risk Weighted Assets), Minimum Capital Requirement Amount | $ 33,272 | $ 15,525 | ||
Total Risk Based Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 4.50% | 4.50% | ||
Virginia Commonwealth Bank | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Total Risk Based Capital (to Risk Weighted Assets), Actual Amount | $ 93,540 | |||
Total Risk Based Capital (to Risk Weighted Assets), Actual Ratio | 12.70% | |||
Total Risk Based Capital (to Risk Weighted Assets), Minimum Capital Requirement Amount | $ 58,914 | |||
Total Risk Based Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 8.00% | |||
Total Risk Based Capital (to Risk Weighted Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 73,642 | |||
Total Risk Based Capital (to Risk Weighted Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 10.00% | |||
Tier 1 Capital (to Risk Weighted Assets), Actual Amount | $ 85,770 | |||
Tier 1 Capital (to Risk Weighted Assets), Actual Ratio | 11.65% | |||
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement Amount | $ 44,185 | |||
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 6.00% | |||
Tier 1 Capital (to Risk Weighted Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 58,914 | |||
Tier 1 Capital (to Risk Weighted Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 8.00% | |||
Tier 1 Capital (to Average Assets), Actual Amount | $ 85,770 | |||
Tier 1 Capital (to Average Assets), Actual Ratio | 8.97% | |||
Tier 1 Capital (to Average Assets), Minimum Capital Requirement Amount | $ 38,259 | |||
Tier 1 Capital (to Average Assets), Minimum Capital Requirement Ratio | 4.00% | |||
Tier 1 Capital (to Average Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 47,824 | |||
Tier 1 Capital (to Average Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 5.00% | |||
Virginia Commonwealth Bank | Common Stock | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Total Risk Based Capital (to Risk Weighted Assets), Actual Amount | $ 85,770 | |||
Total Risk Based Capital (to Risk Weighted Assets), Actual Ratio | 11.65% | |||
Total Risk Based Capital (to Risk Weighted Assets), Minimum Capital Requirement Amount | $ 33,139 | |||
Total Risk Based Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 4.50% | |||
Total Risk Based Capital (to Risk Weighted Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 47,868 | |||
Total Risk Based Capital (to Risk Weighted Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 6.50% | |||
Subsidiaries | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Total Risk Based Capital (to Risk Weighted Assets), Actual Amount | $ 46,977 | |||
Total Risk Based Capital (to Risk Weighted Assets), Actual Ratio | 13.69% | |||
Total Risk Based Capital (to Risk Weighted Assets), Minimum Capital Requirement Amount | $ 27,460 | |||
Total Risk Based Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 8.00% | |||
Total Risk Based Capital (to Risk Weighted Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 34,325 | |||
Total Risk Based Capital (to Risk Weighted Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 10.00% | |||
Tier 1 Capital (to Risk Weighted Assets), Actual Amount | $ 43,114 | |||
Tier 1 Capital (to Risk Weighted Assets), Actual Ratio | 12.56% | |||
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement Amount | $ 20,595 | |||
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 6.00% | |||
Tier 1 Capital (to Risk Weighted Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 27,460 | |||
Tier 1 Capital (to Risk Weighted Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 8.00% | |||
Tier 1 Capital (to Average Assets), Actual Amount | $ 43,114 | |||
Tier 1 Capital (to Average Assets), Actual Ratio | 9.18% | |||
Tier 1 Capital (to Average Assets), Minimum Capital Requirement Amount | $ 18,793 | |||
Tier 1 Capital (to Average Assets), Minimum Capital Requirement Ratio | 4.00% | |||
Tier 1 Capital (to Average Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 23,491 | |||
Tier 1 Capital (to Average Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 5.00% | |||
Subsidiaries | Common Stock | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Total Risk Based Capital (to Risk Weighted Assets), Actual Amount | $ 43,114 | |||
Total Risk Based Capital (to Risk Weighted Assets), Actual Ratio | 12.56% | |||
Total Risk Based Capital (to Risk Weighted Assets), Minimum Capital Requirement Amount | $ 15,446 | |||
Total Risk Based Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 4.50% | |||
Total Risk Based Capital (to Risk Weighted Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 22,311 | |||
Total Risk Based Capital (to Risk Weighted Assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 6.50% |
Employee Stock Ownership Plan -
Employee Stock Ownership Plan - Additional Information (Detail) $ in Thousands | Apr. 01, 2017h | Dec. 31, 2017USD ($)hAgeshares | Dec. 31, 2016USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of employee stock ownership plans | 2 | ||
Surviving ESOP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Noncontributory employee stock ownership plan, service period eligibility | 12 months | ||
Noncontributory employee stock ownership plan, age eligibility | Age | 21 | ||
Allocations, as a percentage of eligible participant compensation | 25.00% | ||
Participant accounts vested after two years | 30.00% | ||
Participant accounts vested after three years | 40.00% | ||
Participant accounts vested each year, from fourth year till 100% vested | 20.00% | ||
Participant accounts, total vested | 100.00% | ||
Allocated shares | shares | 112,847 | ||
Contributions to the plan | $ 75 | $ 67 | |
Dividends on the company's stock held by the ESOP | $ 14 | $ 0 | |
Acquired ESOP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated shares | shares | 508,380 | ||
Number of outstanding loans | 5 | ||
ESOP loan | $ 1,100 | ||
Unearned shares allocated to employee | shares | 164,835 | ||
Defined contribution plan employer safe harbor contribution amount | $ 72 | ||
Defined contribution plan employer matching contribution amount | 76 | ||
Dividend received | 87 | ||
Expenses related to shares commited to be released | 133 | ||
Fair value of unallocated shares | $ 1,700 | ||
401 (k) Retirement Plan | Acquired ESOP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Noncontributory employee stock ownership plan, service period eligibility | 1 month | ||
Noncontributory employee stock ownership plan, age eligibility | 21 | ||
Semi monthly contribution percentage | 3.00% | ||
Eligible employee contribution percentage | 100.00% | ||
Number of hours of service eligible for defined contribution plan | h | 1,000 | ||
401 (k) Retirement Plan | Acquired ESOP | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Contributions of earned compensation percentage | 4.00% | ||
401 (k) Retirement Plan | Combined ESOP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Noncontributory employee stock ownership plan, service period eligibility | 1 year | ||
Noncontributory employee stock ownership plan, age eligibility | 21 | ||
Number of hours of service eligible for defined contribution plan | h | 1,000 |
Stock-Based Compensation Pla115
Stock-Based Compensation Plans - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2017USD ($)Grant$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available for grant | 219,210 | |
Number of grants issued | Grant | 4 | |
Stock-based compensation expense | $ | $ 199,000 | $ 60,000 |
Unrecognized compensation expenses related to stock award | $ | $ 0 | |
Options granted | 86,790 | 29,500 |
Options vested | 86,790 | 29,500 |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share based compensation, restricted stock granted | 15,500 | |
Share based compensation, restricted stock granted, value | $ | $ 131,000 | |
Share based compensation, unvested stock granted | 10,500 | |
Unrecognized stock based compensation expense | $ | $ 62,000 | |
Grant One | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of options granted during the period | $ / shares | $ 1.93 | $ 2.14 |
Grant Two | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of options granted during the period | $ / shares | 1.73 | $ 2 |
Grant Three | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of options granted during the period | $ / shares | 1.50 | |
Grant Four | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of options granted during the period | $ / shares | $ 1.50 |
Stock-Based Compensation Pla116
Stock-Based Compensation Plans - Fair Value of Options (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk free interest rate (5 year Treasury) | 2.10% | 1.94% |
Expected dividend yield | 1.00% | 0.00% |
Expected term (years) | 5 years | 5 years |
Expected volatility minimum | 16.10% | 24.50% |
Expected volatility maximum | 21.70% | 40.10% |
Stock-Based Compensation Pla117
Stock-Based Compensation Plans - Fair Value of Options (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock price volatility, risk free interest period | 5 years | 5 years |
Stock-Based Compensation Pla118
Stock-Based Compensation Plans - Summary of Stock Option Activity (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, beginning | 218,300 | 211,185 | ||
Granted, shares | 86,790 | 29,500 | ||
Forfeited, shares | (1,195) | (13,787) | ||
Exercised, shares | (43,244) | 0 | ||
Expired, shares | (9,625) | (8,598) | ||
Options outstanding, ending | 251,026 | 218,300 | 211,185 | |
Options outstanding, beginning, Weighted Average Exercise Price | $ 6.35 | $ 6.57 | ||
Options exercisable, ending | 251,026 | |||
Granted, Weighted Average Exercise Price | $ 10.08 | 7.24 | ||
Forfeited, Weighted Average Exercise Price | 8.43 | 5.90 | ||
Exercised, Weighted Average Exercise Price | 5.85 | 0 | ||
Expired, Weighted Average Exercise Price | 13.76 | 12.84 | ||
Options outstanding, ending, Weighted Average Exercise Price | 7.43 | $ 6.35 | $ 6.57 | |
Options exercisable, ending, Weighted Average Exercise Price | $ 7.43 | |||
Options outstanding, ending, Weighted Average Remaining Contractual Life | 6 years 8 months 23 days | 6 years | 6 years | |
Options exercisable, ending, Weighted Average Remaining Contractual Life | 6 years 8 months 23 days | |||
Options outstanding, ending, Aggregate Intrinsic Value | [1] | $ 753,229 | $ 378,288 | |
Options exercisable, ending, Aggregate Intrinsic Value | [1] | $ 753,229 | ||
[1] | The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on December 31, 2017. This amount changes based on changes in the market value of the Company's common stock. |
Earnings per share - Weighted A
Earnings per share - Weighted Average Number of Shares Used in Computing Earnings Per Share (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Basic earnings per share | 9,399,223 | 4,774,856 |
Effect of dilutive securities: | ||
Stock options | 25,090 | |
Diluted earnings per share | 9,399,223 | 4,799,946 |
Basic earnings per share | $ (0.14) | $ 0.53 |
Diluted earnings per share | $ (0.14) | $ 0.53 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Unearned Employee Stock Ownership Plan Shares | ||
Computation Of Earnings Per Share Line Items | ||
Shares not included in computing diluted earnings per share because effects were anti-dilutive | 251,026 | 62,541 |
Restricted Stock | ||
Computation Of Earnings Per Share Line Items | ||
Shares not included in computing diluted earnings per share because effects were anti-dilutive | 10,500 |
Related Parties - Additional In
Related Parties - Additional Information (Detail) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | May 28, 2015 |
Related Party Transaction [Line Items] | |||
Unfunded commitments to extend credit and related interest | $ 3,700,000 | $ 2,000,000 | |
Aggregate amount of deposit accounts | $ 1,400,000 | 696,000 | |
Debt instrument, coupon percentage | 1.68% | ||
Subordinated Debt Due May 2025 | |||
Related Party Transaction [Line Items] | |||
Debt instrument, face amount | $ 7,000,000 | $ 7,000,000 | $ 7,000,000 |
Debt instrument, coupon percentage | 6.50% | 6.50% | 6.50% |
Amount owed to related parties | $ 291,000 | ||
Key Employees | |||
Related Party Transaction [Line Items] | |||
Loans and leases receivable, related parties | $ 7,354,000 | $ 8,863,000 | |
Related Parties | Subordinated Debt Due May 2025 | |||
Related Party Transaction [Line Items] | |||
Debt instrument, face amount | $ 285,000 |
Related Parties - Related Parti
Related Parties - Related Parties (Detail) - Key Employees $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Related Party Transaction [Line Items] | |
Beginning Balance | $ 8,863 |
New loans and extensions to existing loans | 25 |
Repayments and other reductions | (1,534) |
Ending Balance | $ 7,354 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2017Loan$ / Loan | Dec. 31, 2016USD ($)$ / Loan | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of portfolio | 2 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Mortgage Servicing Rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loan segregated, number of pools | Loan | 14 | |
Service costs assumed, per loan | $ / Loan | 6.50 | 6 |
Average PSA assumed rate | 150.00% | 150.00% |
Discount rate | 13.00% | 14.00% |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Mortgage Servicing Rights | 100% PSA | First Month | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Prepayment rate | 0.00% | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Mortgage Servicing Rights | 100% PSA | Between First Month and Month 30 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Prepayment rate increase, each month | 0.20% | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Mortgage Servicing Rights | 100% PSA | Month 30 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Prepayment rate | 6.00% | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Mortgage Servicing Rights | 100% PSA | Thereafter | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Prepayment rate | 6.00% | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Mortgage Servicing Rights | Available-for-sale Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Level 1 securities moved to Level 2, amount | $ | $ 1.6 | |
Level 2 securities moved to Level 3, amount | $ | $ 1.5 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Freddie Mac | Mortgage Servicing Rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loan segregated, number of pools | Loan | 5 | |
Service costs assumed, per loan | $ / Loan | 8.16 | |
Average PSA assumed rate | 192.40% | |
Discount rate | 7.51% | |
Average discount rate | 3.60% |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Balances of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Securities available for sale: | ||
Securities available-for-sale | $ 77,153 | $ 51,173 |
Mortgage servicing rights | 999 | 671 |
Defined benefit plan assets: | ||
Defined Benefit Plan Fair Value Of Plan Assets | 2,465 | 2,690 |
Corporate Bonds | ||
Securities available for sale: | ||
Securities available-for-sale | 6,717 | 7,704 |
US Government Agencies Agencies and Mortgage Backed Securities | ||
Securities available for sale: | ||
Securities available-for-sale | 49,283 | 25,313 |
State and Municipal Obligations | ||
Securities available for sale: | ||
Securities available-for-sale | 21,153 | 18,156 |
US Government Agencies | ||
Securities available for sale: | ||
Securities available-for-sale | 25,313 | |
Fixed Income Funds | ||
Defined benefit plan assets: | ||
Defined Benefit Plan Fair Value Of Plan Assets | 994 | 1,041 |
Equity Funds | ||
Defined benefit plan assets: | ||
Defined Benefit Plan Fair Value Of Plan Assets | 1,471 | 1,649 |
Fair Value, Inputs, Level 1 | ||
Defined benefit plan assets: | ||
Defined Benefit Plan Fair Value Of Plan Assets | 2,465 | 2,690 |
Fair Value, Inputs, Level 1 | Fixed Income Funds | ||
Defined benefit plan assets: | ||
Defined Benefit Plan Fair Value Of Plan Assets | 994 | 1,041 |
Fair Value, Inputs, Level 1 | Equity Funds | ||
Defined benefit plan assets: | ||
Defined Benefit Plan Fair Value Of Plan Assets | 1,471 | 1,649 |
Fair Value, Inputs, Level 2 | ||
Securities available for sale: | ||
Securities available-for-sale | 70,436 | 43,469 |
Fair Value, Inputs, Level 2 | US Government Agencies Agencies and Mortgage Backed Securities | ||
Securities available for sale: | ||
Securities available-for-sale | 49,283 | |
Fair Value, Inputs, Level 2 | State and Municipal Obligations | ||
Securities available for sale: | ||
Securities available-for-sale | 21,153 | 18,156 |
Fair Value, Inputs, Level 2 | US Government Agencies | ||
Securities available for sale: | ||
Securities available-for-sale | 25,313 | |
Fair Value, Inputs, Level 3 | ||
Securities available for sale: | ||
Securities available-for-sale | 6,717 | 7,704 |
Mortgage servicing rights | 999 | 671 |
Fair Value, Inputs, Level 3 | Corporate Bonds | ||
Securities available for sale: | ||
Securities available-for-sale | $ 6,717 | $ 7,704 |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Items Using Level Three Inputs (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Mortgage Servicing Rights | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | $ 671 | $ 658 |
Acquired in merger | 324 | |
Impairments | 0 | 0 |
Fair value adjustments | 4 | 13 |
Ending balance | 999 | 671 |
Corporate Bonds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | 7,704 | 3,945 |
Purchases | 3,750 | |
Impairments | 0 | 0 |
Fair value adjustments | 13 | 9 |
Sales | (1,000) | |
Ending balance | $ 6,717 | $ 7,704 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Assets Measured at Fair Value on Nonrecurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, net | $ 3,491 | $ 2,774 |
Other real estate owned, net | 4,284 | 2,494 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, net | 3,491 | 2,774 |
Other real estate owned, net | $ 4,284 | $ 2,494 |
Fair Value Measurements - Su127
Fair Value Measurements - Summary of Quantitative Fair Value Measurements for Level 3 (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Impaired Loans, net | $ 3,491 | $ 2,774 |
Other real estate owned, net | $ 4,284 | $ 2,494 |
Impaired Loans | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Unobservable Input, Lack of Marketability | 50.00% | |
Minimum | Impaired Loans | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Unobservable Input, Selling Cost | 6.00% | 10.00% |
Unobservable Input, Lack of Marketability | 50.00% | |
Minimum | Other Real Estate Owned | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Unobservable Input, Selling Cost | 3.00% | 3.00% |
Unobservable Input, Lack of Marketability | 10.00% | 10.00% |
Maximum | Impaired Loans | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Unobservable Input, Selling Cost | 20.00% | 20.00% |
Unobservable Input, Lack of Marketability | 90.00% | |
Maximum | Other Real Estate Owned | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Unobservable Input, Selling Cost | 13.00% | 13.00% |
Unobservable Input, Lack of Marketability | 100.00% | 20.00% |
Weighted Average | Impaired Loans | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Unobservable Input, Selling Cost | 16.00% | 16.00% |
Unobservable Input, Lack of Marketability | 65.00% | 50.00% |
Weighted Average | Other Real Estate Owned | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Unobservable Input, Selling Cost | 8.00% | 5.00% |
Unobservable Input, Lack of Marketability | 16.00% | 11.00% |
Fair Value Measurements - Estim
Fair Value Measurements - Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financial Assets: | ||
Cash and due from banks | $ 9,396 | $ 4,851 |
Interest-bearing deposits | 41,971 | 7,501 |
Certificates of deposit | 3,224 | 4,216 |
Federal funds sold | 6,961 | 2,350 |
Securities available-for-sale | 77,153 | 51,173 |
Restricted securities | 5,787 | 2,649 |
Loans, net | 758,726 | 381,537 |
Loans held for sale | 1,651 | 276 |
Accrued interest receivable | 3,194 | 1,372 |
Mortgage servicing rights | 999 | 671 |
Financial Liabilities: | ||
Non-interest-bearing liabilities | 103,037 | 74,799 |
Savings and other interest-bearing deposits | 299,820 | 178,869 |
Time deposits | 358,989 | 128,050 |
Securities sold under repurchase agreements | 9,498 | 18,310 |
FHLB advances | 70,000 | 35,000 |
Subordinated debt | 6,877 | 6,860 |
Accrued interest payable | 318 | 331 |
Financial Assets: | ||
Cash and due from banks | 9,396 | 4,851 |
Interest-bearing deposits | 41,971 | 7,501 |
Certificates of deposit | 3,224 | 4,216 |
Federal funds sold | 6,961 | 2,350 |
Securities available-for-sale | 77,153 | 51,173 |
Restricted securities | 5,787 | 2,649 |
Loans, net | 774,099 | 384,468 |
Loans held for sale | 1,651 | 276 |
Accrued interest receivable | 3,194 | 1,372 |
Mortgage servicing rights | 999 | 671 |
Financial Liabilities: | ||
Non-interest-bearing liabilities | 103,037 | 74,799 |
Savings and other interest-bearing deposits | 299,820 | 178,869 |
Time deposits | 356,450 | 127,497 |
Securities sold under repurchase agreements | 9,498 | 18,310 |
FHLB advances | 70,486 | 35,668 |
Subordinated debt | 7,000 | 7,000 |
Accrued interest payable | 318 | 331 |
Fair Value, Inputs, Level 1 | ||
Financial Assets: | ||
Cash and due from banks | 9,396 | 4,851 |
Interest-bearing deposits | 41,971 | 7,501 |
Federal funds sold | 6,961 | 2,350 |
Financial Liabilities: | ||
Non-interest-bearing liabilities | 103,037 | 74,799 |
Fair Value, Inputs, Level 2 | ||
Financial Assets: | ||
Securities available-for-sale | 70,436 | 43,469 |
Financial Assets: | ||
Certificates of deposit | 3,224 | 4,216 |
Securities available-for-sale | 70,436 | 43,469 |
Accrued interest receivable | 3,194 | 1,372 |
Financial Liabilities: | ||
Savings and other interest-bearing deposits | 299,820 | 178,869 |
Securities sold under repurchase agreements | 9,498 | 18,310 |
FHLB advances | 70,486 | 35,668 |
Accrued interest payable | 318 | 331 |
Fair Value, Inputs, Level 3 | ||
Financial Assets: | ||
Securities available-for-sale | 6,717 | 7,704 |
Financial Assets: | ||
Securities available-for-sale | 6,717 | 7,704 |
Restricted securities | 5,787 | 2,649 |
Loans, net | 774,099 | 384,468 |
Loans held for sale | 1,651 | 276 |
Mortgage servicing rights | 999 | 671 |
Financial Liabilities: | ||
Time deposits | 356,450 | 127,497 |
Subordinated debt | $ 7,000 | $ 7,000 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)Branch | Dec. 31, 2016USD ($) | |
Operating Leased Assets [Line Items] | ||
Number of retail branches | Branch | 3 | |
Lease expense | $ | $ 377 | $ 179 |
Future Minimum Lease payments f
Future Minimum Lease payments for Long-term Non-cancelable Lease agreements (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Operating Leased Assets [Line Items] | |
2,018 | $ 341 |
2,019 | 270 |
2,020 | 262 |
2,021 | 270 |
2,022 | 160 |
Operating Leases, Future Minimum Payments Due, Total | $ 1,303 |
Condensed Financial Informat131
Condensed Financial Information of Parent Company - Condensed Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | |||
Cash and due from non-affiliated banks | $ 9,396 | $ 4,851 | |
Interest-bearing deposits | 41,971 | 7,501 | |
Certificates of deposit | 3,224 | 4,216 | |
Other assets | 7,206 | 4,099 | |
Total assets | 970,556 | 486,710 | |
LIABILITIES | |||
Subordinated debt | 6,877 | 6,860 | |
Other liabilities | 7,781 | 3,117 | |
Total liabilities | 856,002 | 445,005 | |
Total shareholders' equity | 114,554 | 41,705 | $ 39,569 |
Total liabilities and shareholders' equity | 970,556 | 486,710 | |
Parent Company | |||
ASSETS | |||
Cash and due from non-affiliated banks | 24,475 | 990 | |
Interest-bearing deposits | 609 | 168 | |
Certificates of deposit | 1,240 | ||
Investments in subsidiaries | 96,539 | 45,510 | |
Other assets | 2,002 | 1,680 | |
Total assets | 123,625 | 49,588 | |
LIABILITIES | |||
Subordinated debt | 6,877 | 6,860 | |
Deferred directors' compensation | 901 | 561 | |
Other borrowings | 1,129 | ||
Other liabilities | 162 | 462 | |
Total liabilities | 9,069 | 7,883 | |
Total shareholders' equity | 114,556 | 41,705 | |
Total liabilities and shareholders' equity | $ 123,625 | $ 49,588 |
Condensed Financial Informat132
Condensed Financial Information of Parent Company - Condensed Statements of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | ||
Interest income | $ 33,700 | $ 17,936 |
Interest expense | 6,001 | 3,525 |
Net interest expense | 27,699 | 14,411 |
Non-interest income | 3,684 | 4,610 |
Non-interest expense | 26,924 | 15,233 |
Income tax benefit | 797 | 966 |
Net (loss) income | (1,272) | 2,535 |
Parent Company | ||
Condensed Financial Statements, Captions [Line Items] | ||
Interest income | 2 | 17 |
Interest expense | 481 | 472 |
Net interest expense | (479) | (455) |
Non-interest income | 857 | 678 |
Non-interest expense | 1,752 | 1,261 |
Loss before income taxes and equity in undistributed earnings of subsidiaries | (1,374) | (1,038) |
Income tax benefit | (340) | (194) |
Loss before equity in undistributed earnings of subsidiaries | (1,034) | (844) |
Equity in undistributed earnings of subsidiaries | (238) | 3,379 |
Net (loss) income | $ (1,272) | $ 2,535 |
Condensed Financial Informat133
Condensed Financial Information of Parent Company - Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Cash Flows from Operating Activities: | ||
Net income (loss) | $ (1,272) | $ 2,535 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Amortization of debt issuance costs | 17 | 16 |
Stock-based compensation | 199 | 60 |
(Decrease) increase in other liabilities | 2,370 | 506 |
Net cash provided by operating activities | 3,638 | 3,899 |
Cash Flows from Investing Activities: | ||
Maturities (purchases) of certificates of deposit | 992 | 1,488 |
Net cash used in investing activities | (109,943) | (39,855) |
Cash Flows from Financing Activities: | ||
Dividends paid and cash in lieu of stock | (1,431) | |
Stock options exercised | 254 | |
Issuance of stock, net | 32,805 | |
Net cash provided by financing activities | 145,320 | 28,009 |
Net decrease in cash and due from banks | 39,015 | (7,947) |
Cash and cash equivalents (including interest-earning deposits) at beginning of period | 12,352 | 20,299 |
Cash and cash equivalents (including interest-earning deposits) at end of period | 51,367 | 12,352 |
Parent Company | ||
Cash Flows from Operating Activities: | ||
Net income (loss) | (1,272) | 2,535 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Amortization of debt issuance costs | 17 | 16 |
Stock-based compensation | 200 | 60 |
Equity in undistributed earnings of subsidiaries | 238 | (3,379) |
Decrease (increase) in other assets | (324) | 240 |
Net change in deferred directors' compensation | 340 | 83 |
(Decrease) increase in other liabilities | (300) | (688) |
Net cash provided by operating activities | (1,101) | (1,133) |
Cash Flows from Investing Activities: | ||
Maturities (purchases) of certificates of deposit | 1,240 | 1,240 |
Investment in subsidiaries | (8,750) | (1,000) |
Net cash used in investing activities | (7,510) | 240 |
Cash Flows from Financing Activities: | ||
Dividends paid and cash in lieu of stock | (1,431) | |
Stock options exercised | 253 | |
Issuance of stock, net | 32,804 | |
ESOP loans acquired from VBC | 911 | |
Net cash provided by financing activities | 32,537 | |
Net decrease in cash and due from banks | 23,926 | (893) |
Cash and cash equivalents (including interest-earning deposits) at beginning of period | 1,158 | 2,051 |
Cash and cash equivalents (including interest-earning deposits) at end of period | $ 25,084 | $ 1,158 |
Accumulated Other Comprehens134
Accumulated Other Comprehensive Loss,net - Balances in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at beginning of period | $ 41,705 | $ 39,569 |
Change in net unrealized holding gains on securities, before reclassification, net of tax expense | 114 | (340) |
Reclassification for previously unrealized net gains recognized in income, net of tax expense | (2) | (287) |
Net gain on pension and postretirement plans, net of tax expense | 155 | 168 |
Net current period other comprehensive gain (loss) | 267 | |
Tax Cuts and Jobs Act of 2017, reclassification from AOCI to retained earnings, tax effect | (188) | |
Balance at end of period | 114,554 | 41,705 |
Net Unrealized Gains (Losses) on Securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at beginning of period | (520) | 107 |
Change in net unrealized holding gains on securities, before reclassification, net of tax expense | 114 | (340) |
Reclassification for previously unrealized net gains recognized in income, net of tax expense | (2) | (287) |
Net current period other comprehensive gain (loss) | 112 | |
Tax Cuts and Jobs Act of 2017, reclassification from AOCI to retained earnings, tax effect | (81) | |
Balance at end of period | (489) | (520) |
Pension and Post employment costs | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at beginning of period | (715) | (883) |
Net gain on pension and postretirement plans, net of tax expense | 155 | 168 |
Net current period other comprehensive gain (loss) | 155 | |
Tax Cuts and Jobs Act of 2017, reclassification from AOCI to retained earnings, tax effect | (107) | |
Balance at end of period | (667) | (715) |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at beginning of period | (1,235) | (776) |
Tax Cuts and Jobs Act of 2017, reclassification from AOCI to retained earnings, tax effect | (188) | |
Balance at end of period | $ (1,156) | $ (1,235) |
Accumulated Other Comprehens135
Accumulated Other Comprehensive Loss,net - Balances in Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Change in net unrealized holding gains on securities, before reclassification, tax benefit | $ 30 | $ 175 |
Reclassification for previously unrealized net gains recognized in income, tax expense | 0 | 148 |
Net gain pension and postretirement plans, tax expense | 41 | 87 |
Net Unrealized Gains (Losses) on Securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Change in net unrealized holding gains on securities, before reclassification, tax benefit | 30 | 175 |
Reclassification for previously unrealized net gains recognized in income, tax expense | 0 | 148 |
Pension and Post employment costs | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net gain pension and postretirement plans, tax expense | $ 41 | $ 87 |
Accumulated Other Comprehens136
Accumulated Other Comprehensive Loss,net - Reclassification for unrealized gains and impairments on securities and pension and postemployment related costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Salaries and employee benefits | $ (13,223) | $ (7,799) |
Tax (expense) benefit | (797) | (966) |
Net Unrealized Gains (Losses) on Securities | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net gains on sale of securities available-for-securities | 2 | 435 |
Tax (expense) benefit | (148) | |
Impact on net income | 2 | 287 |
Pension and Post employment costs | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Salaries and employee benefits | (81) | (77) |
Tax (expense) benefit | 28 | 26 |
Impact on net income | $ (53) | $ (51) |