Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |
Entity Registrant Name | SMARTFINANCIAL INC. |
Entity Central Index Key | 1,038,773 |
Entity Filer Category | Accelerated Filer |
Document Type | S4 |
Document Period End Date | Jun. 30, 2018 |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS (Q2
CONSOLIDATED BALANCE SHEETS (Q2) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | |||||
Cash and due from banks | $ 66,243,037 | $ 64,097,287 | $ 34,290,617 | ||
Interest-bearing deposits at other financial institutions | 101,992,073 | 41,965,597 | 34,457,691 | ||
Federal funds sold | 2,000,000 | 6,964,000 | 0 | ||
Total cash and cash equivalents | 170,235,110 | 113,026,884 | $ 82,835,426 | 68,748,308 | $ 79,964,633 |
Securities available-for-sale, at fair value | 156,577,182 | 151,944,567 | 129,421,914 | ||
Restricted investments, at cost | 8,272,600 | 6,430,700 | 5,627,950 | ||
Loans, net of allowance for loan losses of $7,073,937 at June 30, 2018 and $5,860,291 at December 31, 2017 | 1,568,360,556 | 1,317,397,909 | 808,271,003 | ||
Bank premises and equipment, net | 52,202,992 | 43,000,249 | 30,535,594 | ||
Foreclosed assets | 3,524,239 | 3,254,392 | 2,386,239 | ||
Goodwill and core deposit intangible, net | 68,449,478 | 50,836,840 | 6,635,655 | ||
Cash surrender value of life insurance | 21,944,300 | 21,646,894 | 1,320,723 | ||
Other assets | 12,665,515 | 13,232,247 | 9,508,899 | ||
Total assets | 2,062,231,972 | 1,720,770,682 | 1,062,456,285 | ||
Deposits: | |||||
Noninterest-bearing demand deposits | 301,317,854 | 220,520,287 | 153,482,650 | ||
Interest-bearing demand deposits | 246,942,432 | 231,643,508 | 162,702,457 | ||
Money market and savings deposits | 632,518,003 | 543,644,830 | 274,604,724 | ||
Time deposits | 535,879,278 | 442,774,094 | 316,275,340 | ||
Total deposits | 1,716,657,567 | 1,438,582,719 | 907,065,171 | ||
Securities sold under agreement to repurchase | 18,635,215 | 24,054,730 | 26,621,984 | ||
Federal Home Loan Bank advances and other borrowings | 72,040,028 | 43,600,000 | 18,505,390 | ||
Accrued expenses and other liabilities | 7,412,585 | 8,681,393 | 5,023,600 | ||
Total liabilities | 1,814,745,395 | 1,514,918,842 | 957,216,145 | ||
Shareholders' equity: | |||||
Preferred stock - $1 par value; 2,000,000 shares authorized; None issued and outstanding as of June 30,2018 and December 31,2017 | 0 | 0 | 12,000 | ||
Common stock - $1 par value; 40,000,000 shares authorized; 12,704,581 and 11,152,561 shares issued and outstanding in 2018 and 2017, respectively | 12,704,581 | 11,152,561 | 5,896,033 | ||
Additional paid-in capital | 208,512,862 | 174,008,753 | 83,463,051 | ||
Retained earnings | 29,234,901 | 21,888,575 | 16,871,296 | ||
Accumulated other comprehensive loss | (2,965,767) | (1,198,049) | (1,002,240) | ||
Total stockholders' equity | 247,486,577 | 205,851,840 | $ 134,734,011 | 105,240,140 | $ 100,176,859 |
Total liabilities and shareholders' equity | $ 2,062,231,972 | $ 1,720,770,682 | $ 1,062,456,285 |
CONSOLIDATED BALANCE SHEETS (Q3
CONSOLIDATED BALANCE SHEETS (Q2) (Parenthetical) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||||
Allowance for loan losses (in dollars) | $ 7,073,937 | $ 5,860,291 | $ 5,105,000 | $ 4,354,000 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 | $ 1 | |
Preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 | 2,000,000 | |
Preferred stock, shares issued (in shares) | 0 | 0 | 12,000 | |
Preferred stock, shares outstanding (in shares) | 0 | 0 | 12,000 | |
Common stock, par value (in dollars per share) | $ 1 | $ 1 | $ 1 | |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 | 40,000,000 | |
Common stock, shares issued (in shares) | 12,704,581 | 11,152,561 | 5,896,033 | |
Common stock, shares outstanding (in shares) | 12,704,581 | 11,152,561 | 5,896,033 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Q2) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
INTEREST INCOME | ||||
Loans, including fees | $ 21,652,221 | $ 10,747,217 | $ 39,880,101 | $ 20,962,823 |
Securities and interest-bearing deposits at other financial institutions | 1,197,577 | 692,223 | 2,246,933 | 1,353,043 |
Federal funds sold and other earning assets | 143,586 | 78,049 | 244,404 | 150,946 |
Total interest income | 22,993,384 | 11,517,489 | 42,371,438 | 22,466,812 |
INTEREST EXPENSE | ||||
Deposits | 3,237,891 | 1,241,551 | 5,639,354 | 2,339,089 |
Securities sold under agreements to repurchase | 10,913 | 15,588 | 23,408 | 31,539 |
Federal Home Loan Bank advances and other borrowings | 206,558 | 11,682 | 359,334 | 27,156 |
Total interest expense | 3,455,362 | 1,268,821 | 6,022,096 | 2,397,784 |
Net interest income before provision for loan losses | 19,538,022 | 10,248,668 | 36,349,342 | 20,069,028 |
Provision for loan losses | 616,602 | 298,033 | 1,305,397 | 310,482 |
Net interest income after provision for loan losses | 18,921,420 | 9,950,635 | 35,043,945 | 19,758,546 |
NONINTEREST INCOME | ||||
Customer service fees | 556,891 | 290,626 | 1,134,894 | 555,299 |
Loss on sale of securities | (1,200) | 0 | (1,200) | 0 |
Gain on sale of loans and other assets | 321,584 | 405,418 | 646,928 | 680,583 |
Interchange and debit card transaction fees | 121,219 | 223,329 | 266,754 | 415,722 |
Other noninterest income | 578,715 | 332,634 | 985,025 | 542,674 |
Total noninterest income | 1,577,209 | 1,252,007 | 3,032,401 | 2,194,278 |
NONINTEREST EXPENSES | ||||
Salaries and employee benefits | 7,648,556 | 4,757,618 | 14,824,901 | 9,404,367 |
Net occupancy and equipment expense | 1,521,687 | 962,593 | 3,055,100 | 1,941,052 |
Depository insurance | 317,409 | 60,987 | 419,213 | 214,286 |
Sale of foreclosed assets and related expense | 239,634 | 11,508 | 429,061 | 25,585 |
Advertising | 214,632 | 129,398 | 399,107 | 293,659 |
Data processing | 600,448 | 475,343 | 1,126,756 | 808,558 |
Professional services | 918,135 | 473,351 | 1,816,495 | 1,043,192 |
Amortization of intangible assets | 228,866 | 61,071 | 416,623 | 113,648 |
Service contracts | 491,774 | 312,905 | 970,381 | 608,534 |
Merger expenses | 1,122,976 | 419,992 | 1,620,716 | 419,992 |
Other operating expenses | 1,968,249 | 1,163,896 | 3,416,505 | 2,116,265 |
Total noninterest expenses | 15,272,366 | 8,828,662 | 28,494,858 | 16,989,138 |
Income before income tax expense | 5,226,263 | 2,373,980 | 9,581,488 | 4,963,686 |
Income tax expense | 1,294,707 | 725,694 | 2,235,162 | 1,671,548 |
Net income | 3,931,556 | 1,648,286 | 7,346,326 | 3,292,138 |
Preferred stock dividends | 0 | 0 | 0 | 195,000 |
Net income available to common shareholders | $ 3,931,556 | $ 1,648,286 | $ 7,346,326 | $ 3,097,138 |
EARNINGS PER COMMON SHARE | ||||
Basic (in dollars per share) | $ 0.32 | $ 0.20 | $ 0.63 | $ 0.39 |
Diluted (in dollars per share) | $ 0.32 | $ 0.20 | $ 0.62 | $ 0.39 |
Weighted average common shares outstanding | ||||
Basic (in shares) | 12,201,185 | 8,216,567 | 11,708,746 | 7,872,609 |
Diluted (in shares) | 12,320,498 | 8,325,538 | 11,822,497 | 7,977,282 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Q2) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||||
Net income available to common shareholders | $ 3,931,556 | $ 1,648,286 | $ 7,346,326 | $ 3,292,138 | $ 5,015,064 | $ 5,798,808 |
Other comprehensive (loss) income, net of tax: | ||||||
Unrealized holding gains (losses) on securities arising during the period, net of tax (benefit) expense of $(134,439), $(580,433), $468,293 and $270,461 in 2018 and 2017, respectively | (397,244) | 435,890 | (1,768,638) | 754,724 | 90,381 | (526,954) |
Reclassification adjustment for losses included in net income, net of tax (benefit) of $(280) and $0 in 2018 and 2017, respectively | 920 | 0 | 920 | 0 | (88,975) | (123,165) |
Total other comprehensive (loss) income | (396,324) | 435,890 | (1,767,718) | 754,724 | 1,406 | (650,119) |
Comprehensive income | $ 3,535,232 | $ 2,084,176 | $ 5,578,608 | $ 4,046,862 | $ 4,819,255 | $ 5,148,689 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Q2) (Parenthetical) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||||
Unrealized holding gains arising during the period, tax expense (benefit) | $ (134,439) | $ 270,461 | $ (580,433) | $ 468,293 | $ (55,405) | $ 326,697 |
Reclassification adjustment for losses included in net income, tax expense | $ (280) | $ 0 | $ (280) | $ 0 | $ 54,533 | $ 76,422 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - UNAUDITED (Q2) - USD ($) | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
BALANCE at Dec. 31, 2015 | $ 100,176,859 | $ 12,000 | $ 5,806,477 | $ 82,616,015 | $ 12,094,488 | $ (352,121) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income available to common shareholders | 5,798,808 | 5,798,808 | ||||
Other comprehensive loss | (650,119) | |||||
Exercise of stock options | 803,957 | 89,556 | 714,401 | |||
Cash dividends on preferred stock | (1,022,000) | (1,022,000) | ||||
Stock option compensation expense | 132,635 | 132,635 | ||||
BALANCE at Dec. 31, 2016 | 105,240,140 | 12,000 | 5,896,033 | 83,463,051 | 16,871,296 | (1,002,240) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income available to common shareholders | 3,292,138 | 3,292,138 | ||||
Other comprehensive loss | 754,724 | 754,724 | ||||
Issuance of common stock | 32,934,676 | 1,840,000 | 31,094,676 | |||
Issuance of stock grants | 31,791 | 1,511 | 30,280 | |||
Exercise of stock options | 4,625,012 | 481,717 | 4,143,295 | |||
Cash dividends on preferred stock | (195,000) | (195,000) | ||||
Redemption of preferred stock | (12,000,000) | (12,000) | (11,988,000) | |||
Stock option compensation expense | 50,530 | 50,530 | ||||
BALANCE at Jun. 30, 2017 | 134,734,011 | 0 | 8,219,261 | 106,793,832 | 19,968,434 | (247,516) |
BALANCE at Dec. 31, 2016 | 105,240,140 | 12,000 | 5,896,033 | 83,463,051 | 16,871,296 | (1,002,240) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income available to common shareholders | 5,015,064 | 5,015,064 | ||||
Other comprehensive loss | 1,406 | |||||
Issuance of common stock | 32,934,676 | 1,840,000 | 31,094,676 | |||
Issuance of stock grants | 31,791 | 1,511 | 30,280 | |||
Exercise of stock options | 4,885,646 | 506,923 | 4,378,723 | |||
Cash dividends on preferred stock | (195,000) | (195,000) | ||||
Redemption of preferred stock | (12,000,000) | (12,000) | (11,988,000) | |||
Stock option compensation expense | 97,966 | 97,966 | ||||
BALANCE at Dec. 31, 2017 | 205,851,840 | $ 0 | 11,152,561 | 174,008,753 | 21,888,575 | (1,198,049) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income available to common shareholders | 7,346,326 | 7,346,326 | ||||
Other comprehensive loss | (1,767,718) | (1,767,718) | ||||
Issuance of common stock | 34,731,922 | 1,458,981 | 33,272,941 | |||
Issuance of stock grants | 9,062 | 394 | 8,668 | |||
Exercise of stock options | 1,070,917 | 92,645 | 978,272 | |||
Stock option compensation expense | 244,228 | 244,228 | ||||
BALANCE at Jun. 30, 2018 | $ 247,486,577 | $ 12,704,581 | $ 208,512,862 | $ 29,234,901 | $ (2,965,767) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Q2) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income available to common shareholders | $ 7,346,326 | $ 3,292,138 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,907,969 | 1,165,930 |
Provision for loan losses | 1,305,397 | 310,482 |
Stock option compensation expense | 244,228 | 50,530 |
Loss from redemption of securities | 1,200 | 0 |
Net gains from sale of loans and other assets | (646,928) | (680,583) |
Net losses from sale of foreclosed assets | 371,734 | 15,064 |
Changes in other assets and liabilities: | ||
Accrued interest receivable | (250,228) | 18,144 |
Accrued interest payable | 48,400 | 13,117 |
Other assets and liabilities | 1,869,609 | 1,457,176 |
Net cash provided by operating activities | 12,197,707 | 5,641,998 |
CASH FLOWS FROM INVESTING ACTIVITIES, net of acquisitions | ||
Proceeds from sales, maturities, and paydowns of securities available-for-sale | 34,524,629 | 10,062,386 |
Purchase of securities | (17,239,649) | (12,507,860) |
Purchase of bank owned life insurance | 0 | (10,070,914) |
Purchase of restricted investments | (1,377,600) | (452,750) |
Net cash and cash equivalents received (paid) in business combination | 5,653,304 | (1,049,878) |
Loan originations and principal collections, net | (73,194,598) | (27,248,001) |
Purchase of bank premises and equipment | (992,045) | (1,226,898) |
Proceeds from sale of foreclosed assets | 2,126,213 | 41,636 |
Net cash used in investing activities | (50,499,746) | (42,452,279) |
CASH FLOWS FROM FINANCING ACTIVITIES, net of acquisitions | ||
Net increase in deposits | 75,409,773 | 47,682,310 |
Net decrease in securities sold under agreements to repurchase | (5,419,515) | (3,676,000) |
Issuance of common stock | 1,079,979 | 37,591,479 |
Redemption of preferred stock | 0 | (12,000,000) |
Payment of dividends on preferred stock | 0 | (195,000) |
Proceeds from Federal Home Loan Bank advances and other borrowings | 127,040,028 | 79,268,072 |
Repayment of Federal Home Loan Bank advances and other borrowings | (102,600,000) | (97,773,462) |
Net cash provided by financing activities | 95,510,265 | 50,897,399 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 57,208,226 | 14,087,118 |
CASH AND CASH EQUIVALENTS, beginning of year | 113,026,884 | 68,748,308 |
CASH AND CASH EQUIVALENTS, end of year | 170,235,110 | 82,835,426 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Cash paid during the period for interest | 5,973,696 | 2,374,250 |
Cash paid during the period for income taxes | 713,000 | 1,366,172 |
NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Change in unrealized losses on securities available for sale | 2,347,870 | (1,223,017) |
Acquisition of real estate through foreclosure | 2,350,853 | 39,517 |
Financed sales of foreclosed assets | 257,416 | 0 |
Change in goodwill due to acquisition | $ 15,739,261 | $ 0 |
Consolidated Balance Sheets (FY
Consolidated Balance Sheets (FY) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | |||||
Cash and due from banks | $ 66,243,037 | $ 64,097,287 | $ 34,290,617 | ||
Interest-bearing deposits at other financial institutions | 101,992,073 | 41,965,597 | 34,457,691 | ||
Federal funds sold | 2,000,000 | 6,964,000 | 0 | ||
Total cash and cash equivalents | 170,235,110 | 113,026,884 | $ 82,835,426 | 68,748,308 | $ 79,964,633 |
Securities available for sale | 156,577,182 | 151,944,567 | 129,421,914 | ||
Restricted investments, at cost | 8,272,600 | 6,430,700 | 5,627,950 | ||
Loans, net of allowance for loan losses of $5,860,291 in 2017 and $5,105,255 in 2016 | 1,568,360,556 | 1,317,397,909 | 808,271,003 | ||
Bank premises and equipment, net | 52,202,992 | 43,000,249 | 30,535,594 | ||
Foreclosed assets | 3,524,239 | 3,254,392 | 2,386,239 | ||
Goodwill and core deposit intangible, net | 68,449,478 | 50,836,840 | 6,635,655 | ||
Cash surrender value of life insurance | 21,944,300 | 21,646,894 | 1,320,723 | ||
Other assets | 12,665,515 | 13,232,247 | 9,508,899 | ||
Total assets | 2,062,231,972 | 1,720,770,682 | 1,062,456,285 | ||
Deposits: | |||||
Noninterest-bearing demand deposits | 301,317,854 | 220,520,287 | 153,482,650 | ||
Interest-bearing demand deposits | 246,942,432 | 231,643,508 | 162,702,457 | ||
Money market and savings deposits | 632,518,003 | 543,644,830 | 274,604,724 | ||
Time deposits | 535,879,278 | 442,774,094 | 316,275,340 | ||
Total deposits | 1,716,657,567 | 1,438,582,719 | 907,065,171 | ||
Securities sold under agreement to repurchase | 18,635,215 | 24,054,730 | 26,621,984 | ||
Federal Home Loan Bank advances and other borrowings | 72,040,028 | 43,600,000 | 18,505,390 | ||
Accrued expenses and other liabilities | 7,412,585 | 8,681,393 | 5,023,600 | ||
Total liabilities | 1,814,745,395 | 1,514,918,842 | 957,216,145 | ||
Stockholders' equity: | |||||
Preferred stock - $1 par value; 2,000,000 shares authorized; None issued and outstanding as of December 31, 2017; 12,000 issued and outstanding in 2016 | 0 | 0 | 12,000 | ||
Common stock - $1 par value; 40,000,000 shares authorized; 11,152,561 and 5,896,033 shares issued and outstanding in 2017 and 2016, respectively | 12,704,581 | 11,152,561 | 5,896,033 | ||
Additional paid-in capital | 208,512,862 | 174,008,753 | 83,463,051 | ||
Retained earnings | 29,234,901 | 21,888,575 | 16,871,296 | ||
Accumulated other comprehensive loss | (2,965,767) | (1,198,049) | (1,002,240) | ||
Total stockholders' equity | 247,486,577 | 205,851,840 | $ 134,734,011 | 105,240,140 | $ 100,176,859 |
Total liabilities and shareholders' equity | $ 2,062,231,972 | $ 1,720,770,682 | $ 1,062,456,285 |
Consolidated Balance Sheets (10
Consolidated Balance Sheets (FY) (Parenthetical) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||||
Allowance for loan losses (in dollars) | $ 7,073,937 | $ 5,860,291 | $ 5,105,000 | $ 4,354,000 |
Preferred Stock, Par value (in dollars per share) | $ 1 | $ 1 | $ 1 | |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 | 2,000,000 | |
Preferred stock, shares issued | 0 | 0 | 12,000 | |
Preferred stock, shares outstanding | 0 | 0 | 12,000 | |
Common stock, par value (in dollars per share) | $ 1 | $ 1 | $ 1 | |
Common stock, shares authorized | 40,000,000 | 40,000,000 | 40,000,000 | |
Common stock, shares issued | 12,704,581 | 11,152,561 | 5,896,033 | |
Common stock, shares outstanding | 12,704,581 | 11,152,561 | 5,896,033 |
Consolidated Statements of In11
Consolidated Statements of Income (FY) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
INTEREST INCOME | ||
Loans, including fees | $ 48,805,647 | $ 39,763,582 |
Securities and interest bearing deposits at other financial institutions | 2,862,825 | 2,553,652 |
Federal funds sold and other earning assets | 353,924 | 247,157 |
Total interest income | 52,022,396 | 42,564,391 |
INTEREST EXPENSE | ||
Deposits | 5,518,350 | 4,105,304 |
Securities sold under agreements to repurchase | 61,933 | 65,276 |
Federal Home Loan Bank advances and other borrowings | 113,070 | 129,102 |
Total interest expense | 5,693,353 | 4,299,682 |
Net interest income before provision for loan losses | 46,329,043 | 38,264,709 |
Provision for loan losses | 782,687 | 787,545 |
Net interest income after provision for loan losses | 45,546,356 | 37,477,164 |
NONINTEREST INCOME | ||
Customer service fees | 1,374,068 | 1,127,814 |
Gain on sale of securities | 143,508 | 199,587 |
Gain on sale of loans and other assets | 1,275,925 | 948,080 |
(Loss) gain on sale of foreclosed assets | (47,795) | 191,050 |
Other noninterest income | 2,233,787 | 1,716,794 |
Total noninterest income | 4,979,493 | 4,183,325 |
NONINTEREST EXPENSES | ||
Salaries and employee benefits | 20,743,153 | 17,715,222 |
Net occupancy and equipment expense | 4,271,289 | 3,995,631 |
Depository insurance | 465,844 | 605,917 |
Foreclosed assets | 83,908 | 236,148 |
Advertising | 637,600 | 615,751 |
Data processing | 1,875,462 | 1,893,386 |
Professional services | 2,084,735 | 2,122,845 |
Amortization of intangible assets | 346,435 | 305,452 |
Service contracts | 1,398,018 | 1,154,003 |
Merger expenses | 2,417,070 | 0 |
Other operating expenses | 4,758,480 | 3,855,246 |
Total noninterest expenses | 39,081,994 | 32,499,601 |
Income before income tax expense | 11,443,855 | 9,160,888 |
Income tax expense | 6,428,791 | 3,362,080 |
Net income | 5,015,064 | 5,798,808 |
Preferred stock dividends | 195,000 | 1,022,000 |
Net income available to common shareholders | $ 4,820,064 | $ 4,776,808 |
EARNINGS PER COMMON SHARE | ||
Basic (in dollars per share) | $ 0.56 | $ 0.82 |
Diluted (in dollars per share) | $ 0.55 | $ 0.78 |
Weighted average common shares outstanding | ||
Basic (in shares) | 8,639,212 | 5,838,574 |
Diluted (in shares) | 8,793,527 | 6,118,943 |
Consolidated Statements of Co12
Consolidated Statements of Comprehensive Income (FY) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 5,015,064 | $ 5,798,808 |
Other comprehensive loss, net of tax: | ||
Unrealized holding gains (losses) arising during the year, net of tax expense (benefit) of $55,405 and $(326,697) in 2017 and 2016, respectively | 90,381 | (526,954) |
Reclassification adjustment for gains included in net income, net of tax expense of $54,533 and $76,422 in 2017 and 2016, respectively | (88,975) | (123,165) |
Total other comprehensive (loss) income | 1,406 | (650,119) |
Effect of tax rate change on unrealized gains (losses) on available for sale securities | (197,215) | 0 |
Total other comprehensive loss | (195,809) | (650,119) |
Comprehensive income | $ 4,819,255 | $ 5,148,689 |
Consolidated Statements of Co13
Consolidated Statements of Comprehensive Income (FY) (Parenthetical) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||||
Unrealized holding losses arising during the year, tax benefit | $ 134,439 | $ (270,461) | $ 580,433 | $ (468,293) | $ 55,405 | $ (326,697) |
Reclassification adjustment for gains included in net income, tax expense | $ (280) | $ 0 | $ (280) | $ 0 | $ 54,533 | $ 76,422 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (FY) - USD ($) | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] |
BALANCE at Dec. 31, 2015 | $ 100,176,859 | $ 12,000 | $ 5,806,477 | $ 82,616,015 | $ 12,094,488 | $ (352,121) |
BALANCE (in shares) at Dec. 31, 2015 | 12,000 | 5,806,477 | ||||
Net income | 5,798,808 | 5,798,808 | ||||
Other comprehensive gain | (650,119) | (650,119) | ||||
Exercise of stock options | 803,957 | $ 89,556 | 714,401 | |||
Exercise of stock options (in shares) | 0 | 89,556 | ||||
Dividends on preferred stock | (1,022,000) | (1,022,000) | ||||
Stock option compensation expense | 132,635 | 132,635 | ||||
BALANCE at Dec. 31, 2016 | 105,240,140 | $ 12,000 | $ 5,896,033 | 83,463,051 | 16,871,296 | (1,002,240) |
BALANCE (in shares) at Dec. 31, 2016 | 12,000 | 5,896,033 | ||||
Net income | 3,292,138 | 3,292,138 | ||||
Issuance of common stock | 32,934,676 | $ 1,840,000 | 31,094,676 | |||
Issuance of stock grants | 31,791 | 1,511 | 30,280 | |||
Redemption of preferred stock | (12,000,000) | $ (12,000) | (11,988,000) | |||
Exercise of stock options | 4,625,012 | 481,717 | 4,143,295 | |||
Dividends on preferred stock | (195,000) | (195,000) | ||||
Stock option compensation expense | 50,530 | 50,530 | ||||
BALANCE at Jun. 30, 2017 | 134,734,011 | 0 | 8,219,261 | 106,793,832 | 19,968,434 | (247,516) |
BALANCE at Dec. 31, 2016 | 105,240,140 | $ 12,000 | $ 5,896,033 | 83,463,051 | 16,871,296 | (1,002,240) |
BALANCE (in shares) at Dec. 31, 2016 | 12,000 | 5,896,033 | ||||
Net income | 5,015,064 | 5,015,064 | ||||
Other comprehensive gain | 1,406 | 1,406 | ||||
Reclassification adjustment for tax rate change | 0 | 197,215 | (197,215) | |||
Issuance of common stock | 32,934,676 | $ 1,840,000 | 31,094,676 | |||
Issuance of common stock (in shares) | 1,840,000 | |||||
Issuance of stock grants | 31,791 | $ 1,511 | 30,280 | |||
Issuance of stock grants (in shares) | 1,511 | |||||
Redemption of preferred stock | (12,000,000) | $ (12,000) | (11,988,000) | |||
Redemption of preferred stock (in shares) | (12,000) | |||||
Conversion shares issued to shareholders of Capstone Bancshares, Inc. | 69,783,821 | $ 2,908,094 | 66,875,727 | |||
Conversion shares issued to shareholders of Capstone Bancshares, Inc. (in shares) | 2,908,094 | |||||
Exercise of stock options | 4,885,646 | $ 506,923 | 4,378,723 | |||
Exercise of stock options (in shares) | 0 | 506,923 | ||||
Dividends on preferred stock | (195,000) | (195,000) | ||||
Restricted stock compensation expense | 56,330 | 56,330 | ||||
Stock option compensation expense | 97,966 | 97,966 | ||||
BALANCE at Dec. 31, 2017 | 205,851,840 | $ 0 | $ 11,152,561 | 174,008,753 | 21,888,575 | (1,198,049) |
BALANCE (in shares) at Dec. 31, 2017 | 0 | 11,152,561 | ||||
Net income | 7,346,326 | 7,346,326 | ||||
Issuance of common stock | 34,731,922 | $ 1,458,981 | 33,272,941 | |||
Issuance of stock grants | 9,062 | 394 | 8,668 | |||
Exercise of stock options | 1,070,917 | 92,645 | 978,272 | |||
Stock option compensation expense | 244,228 | 244,228 | ||||
BALANCE at Jun. 30, 2018 | $ 247,486,577 | $ 12,704,581 | $ 208,512,862 | $ 29,234,901 | $ (2,965,767) |
Consolidated Statements of Ca15
Consolidated Statements of Cash Flows (FY) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 5,015,064 | $ 5,798,808 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 2,464,414 | 2,189,088 |
Provision for loan losses | 782,687 | 787,545 |
Stock option compensation expense | 97,966 | 132,635 |
Restricted stock compensation expense | 56,330 | 0 |
Net gains from sale of securities | (143,508) | (199,587) |
Net gains from sale of loans and other assets | (1,275,925) | (948,080) |
Net losses (gains) from sale of foreclosed assets | 47,795 | (191,050) |
Changes in other assets and liabilities: | ||
Accrued interest receivable | (331,347) | 110,952 |
Accrued interest payable | 31,488 | (8,373) |
Other assets and liabilities | (102,663) | 3,918,803 |
Net cash provided by operating activities | 6,642,301 | 11,590,741 |
CASH FLOWS FROM INVESTING ACTIVITIES, net of acquisitions | ||
Purchase of securities available for sale | (53,998,043) | (22,111,781) |
Proceeds from security sales, maturities, and paydowns | 82,636,066 | 57,495,436 |
Purchase (redemption) of restricted investments | 246,350 | |
Purchase (redemption) of restricted investments | (1,176,900) | |
Purchase of bank owned life insurance | (10,000,000) | 0 |
Loan originations and principal collections, net | (72,126,299) | (82,804,921) |
Purchase of bank premises and equipment | (2,798,898) | (6,994,729) |
Proceeds from sale of foreclosed assets | 82,864 | 1,279,554 |
Net cash and cash equivalents paid in business combinations | (178,312) | 0 |
Net cash used in investing activities | (56,136,272) | (54,313,341) |
CASH FLOWS FROM FINANCING ACTIVITIES, net of acquisitions | ||
Net increase in deposits | 50,474,866 | 48,582,620 |
Net decrease in securities sold under agreements to repurchase | (2,567,254) | (1,446,231) |
Issuance of common stock | 37,852,113 | 803,957 |
Payment of dividends on preferred stock | (195,000) | (752,000) |
Redemption of preferred stock | (12,000,000) | 0 |
Repayment of Federal Home Loan Bank advances and other borrowings | (119,196,383) | (67,282,071) |
Proceeds from Federal Home Loan Bank advances and other borrowings | 139,404,205 | 51,600,000 |
Net cash provided by financing activities | 93,772,547 | 31,506,275 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 44,278,576 | (11,216,325) |
CASH AND CASH EQUIVALENTS, beginning of year | 68,748,308 | 79,964,633 |
CASH AND CASH EQUIVALENTS, end of year | 113,026,884 | 68,748,308 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Cash paid during the period for interest | 5,399,749 | 4,308,055 |
Cash paid during the period for taxes | 3,531,984 | 3,754,784 |
Cash received during the period from tax refunds | 0 | 1,592,224 |
NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Change in unrealized losses on securities available for sale | (2,276) | 1,053,238 |
Acquisition of real estate through foreclosure | 588,775 | 1,431,857 |
Financed sales of foreclosed assets | $ 0 | $ 3,315,064 |
Presentation of Financial Infor
Presentation of Financial Information (Q2) | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Presentation of Financial Information | Note 1. Presentation of Financial Information Nature of Business: SmartFinancial, Inc. (the “Company”) is a bank holding company whose principal activity is the ownership and management of its wholly-owned subsidiary, SmartBank (the “Bank”). The Company provides a variety of financial services to individuals and corporate customers through its offices in eastern Tennessee, Alabama, Florida, and Georgia. The Company’s primary deposit products are interest-bearing demand deposits and time deposits. Its primary lending products are commercial, residential, and consumer loans. On May 22, 2017, the Company along with the Bank entered into an agreement and plan of merger with Capstone Bancshares, Inc., an Alabama corporation and Capstone Bank, an Alabama-chartered commercial bank and wholly owned subsidiary of Capstone Bancshares, Inc. which became effective on November 1, 2017. On December 12, 2017, the Company along with the Bank entered into an agreement and plan of merger with Tennessee Bancshares, Inc., a Tennessee corporation and Southern Community Bank, a Tennessee-chartered commercial bank and wholly owned subsidiary of Tennessee Bancshares which became effective on May 1, 2018. Interim Financial Information (Unaudited): The financial information in this report for June 30, 2018 and June 30, 2017 has not been audited. The information included herein should be read in conjunction with the Company’s annual consolidated financial statements and footnotes included in the Company's most recent Annual Report on Form 10-K. The consolidated financial statements presented herein conform to U.S. generally accepted accounting principles and to general industry practices. In the opinion of SmartFinancial’s management, the accompanying interim financial statements contain all material adjustments necessary to present fairly the financial condition, the results of operations, and cash flows for the interim period. Results for interim periods are not necessarily indicative of the results to be expected for a full year. Basis of Presentation and Accounting Estimates: All adjustments consisting of normal recurring accruals, that in the opinion of management, are necessary for a fair presentation of the financial position and the results of operations for the periods covered by the report have been included. The accompanying unaudited consolidated financial statements and related notes should be read in conjunction with those appearing in the most recent Annual Report previously filed on Form 10-K. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany balances and transactions have been eliminated in consolidation. In preparing the consolidated financial statements in conformity with accounting principles generally accepted in the U.S, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet, and reported amounts of revenues and expenses during the reporting period. Actual results could differ 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 valuation of foreclosed assets and deferred taxes, other-than-temporary impairments of securities, and the fair value of financial instruments. The determination of the adequacy of the allowance for loan losses is based on estimates that are particularly susceptible to significant changes in the economic environment and market conditions. In connection with the determination of the estimated losses on loans, management obtains independent appraisals for significant collateral. The Company’s loans are generally secured by specific items of collateral including real property, consumer assets, and business assets. Although the Company has a diversified loan portfolio, a substantial portion of its debtors’ ability to honor their contracts is dependent on local economic conditions. While management uses available information to recognize losses on loans, further reductions in the carrying amounts of loans may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the estimated losses on loans. Such agencies may require the Company to recognize additional losses based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the estimated losses on loans may change materially in the near term. However, the amount of the change that is reasonably possible cannot be estimated. Accounting Changes: We adopted ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)” and its related amendments as of January 1, 2018 utilizing the modified retrospective approach. The implementation of the new standard did not have a material impact on the measurement or recognition of revenue; as such, a cumulative effect adjustment to opening retained earnings was not deemed necessary. Since the guidance does not apply to revenue associated with financial instruments, including loans and securities that are accounted for under other GAAP, the new guidance did not have a material impact on revenue most closely associated with financial instruments, including interest income and expense. The Company completed its overall assessment of revenue streams and review of related contracts potentially affected by the ASU, including, deposit related fees, interchange fees, merchant income, and insurance and brokerage commissions. Based on this assessment, the Company concluded that ASU 2014-09 did not materially change the method in which the Company currently recognizes revenue for these revenue streams. Under ASU 2014-09, we adopted new policies related to revenue recognition. In general, for revenue not associated with financial instruments, guarantees and lease contracts, we apply the following steps when recognizing revenue from contracts with customers: (i) identify the contract, (ii) identify the performance obligations, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations and (v) recognize revenue when performance obligation is satisfied. Our contracts with customers are generally short term in nature, typically due within one year or less or cancellable by us or our customer upon a short notice period. Performance obligations for our customer contracts are generally satisfied at a single point in time, typically when the transaction is complete, or over time. For performance obligations satisfied over time, we primarily use the output method, directly measuring the value of the products/services transferred to the customer, to determine when performance obligations have been satisfied. We typically receive payment from customers and recognize revenue concurrent with the satisfaction of our performance obligations. In most cases, this occurs within a single financial reporting period. For payments received in advance of the satisfaction of performance obligations, revenue recognition is deferred until such time the performance obligations have been satisfied. In cases where we have not received payment despite satisfaction of our performance obligations, we accrue an estimate of the amount due in the period our performance obligations have been satisfied. For contracts with variable components, only amounts for which collection is probable are accrued. We generally act in a principal capacity, on our own behalf, in most of our contracts with customers. In such transactions, we recognize revenue and the related costs to provide our services on a gross basis in our financial statements. In some cases, we act in an agent capacity, deriving revenue through assisting other entities in transactions with our customers. In such transactions, we recognized revenue and the related costs to provide our services on a net basis in our financial statements. These transactions relate to our customers' use of various interchange and ATM/debit card networks. Based on our underlying contracts, ASU 2014-09 requires us to report network costs associated with debit card and ATM transactions netted against the related fees from such transactions. Previously, such network costs were reported as a component of other noninterest expense. For the three and six months periods ended June 30, 2018, gross interchange and debit card transaction fees totaled $401 thousand and $733 thousand , respectively while related network costs totaled $280 thousand and $467 thousand , respectively. On a net basis, we reported $121 thousand and $267 thousand as interchange and debit card transaction fees in the accompanying Consolidated Statement of Income for the three and six months periods ended June 30, 2018. For the three and six months periods ended June 30, 2017, we reported interchange and debit card transaction fees totaling $223 thousand and $416 thousand , respectively on a gross basis in the accompanying Consolidated Statement of Income while related network costs totaling $140 thousand and $227 thousand , respectively were reported in other operating expenses included as a component of other noninterest expense. ASU 2016-01 "Financial Instruments - Overall (Subtopic 825-10): Recognition of Financial Assets and Financial Liabilities, ("ASU 2016-01") makes targeted amendments to the guidance for recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 requires equity investments, other than equity method investments, to be measured at fair value with changes in fair value recognized in net income. The ASU requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption to reclassify the cumulative change in fair value of equity securities previously recognized in Accumulated Other Comprehensive Income. ASU 2016-01 became effective for the Company on January 1, 2018 and there was no adjustment to retained earnings. ASU 2016-01 also emphasizes the existing requirement to use exit prices to measure fair value for disclosure purposes and clarifies that entities should not make use of a practicability exception in determining the fair value of loans. Accordingly, we refined the calculation used to determine the disclosed fair value of our loans held for investment portfolio as part of adopting this standard. The refined calculation is disclosed Note 6 - Fair Value Disclosures. In February 2018, the FASB issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income; (“ASU 2018-02”). ASU 2018-02 amends ASC Topic 220 and allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (“Tax Reform Act”). Consequently, this amendment eliminates the stranded tax effects resulting from the Tax Reform Act and will improve the usefulness of information reported to financial statement users. However, because the amendments only related to the reclassification of the income tax effects of the Tax Reform Act, the underlying guidance that requires that the effects of the change in tax laws or rates be included in income from continuing operations is not affected. The guidance is effective for public companies for annual periods beginning on or after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. This amendment should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in U.S. federal corporate income tax rate in the Tax Reform Act is recognized. The Company early adopted this amendment in the fourth quarter of 2017 and reclassified $197 thousand from accumulated other comprehensive income to retained earnings for the stranded tax effects resulting from the Tax Reform Act. Recently Issued Accounting Pronouncements: During interim periods, the Company follows the accounting policies set forth in its annual audited financial statements for the year ended December 31, 2017 as filed with the Securities and Exchange Commission. The following is a summary of recent authoritative pronouncements not yet effective that could impact the accounting, reporting, and/or disclosure of financial information by the Company issued since December 31, 2017 . In February 2016, the FASB issued guidance that requires lessees to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability in ASU 2016-2: Leases (Topic 842). For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines. Lessor accounting is similar to the current model, but updated to align with certain changes to the lessee model and the new revenue recognition standard. Existing sale-leaseback guidance, including guidance for real estate, is replaced with a new model applicable to both lessees and lessors. The new guidance will be effective for public business entities for annual periods beginning after December 15, 2018 including interim periods within those fiscal years. The Company has several lease agreements, such as branch locations, which are currently considered operating leases, and therefore, not recognized on the Company’s consolidated statements of condition. The Company expects the new guidance will require these lease agreements to be recognized on the consolidated statements of condition as a right-of-use asset and a corresponding lease liability. Therefore, the Company’s preliminary evaluation indicates the provisions of ASU No. 2016-02 are expected to impact the Company’s consolidated statements of condition, along with our regulatory capital ratios. However, the Company continues to evaluate the extent of potential impact the new guidance will have on the Company’s consolidated financial statements. The Company is in the process of identifying a complete inventory of arrangements containing a lease and accumulating the lease data necessary to apply the amended guidance. In January 2018, the FASB issued ASU 2018-01, Leases (Topic 842) Land Easement Practical Expedient Transition to Topic 842 , an amendment to ASU 2016-2: Leases. The amendments in this Update permit an entity to elect an optional transition practical expedient to not evaluate under Topic 842 land easements that exist or expired before the entity’s adoption of Topic 842 and that were not previously accounted for as leases under Topic 840. An entity that elects this practical expedient should apply the practical expedient consistently to all of its existing or expired land easements that were not previously accounted for as leases under Topic 840. Once an entity adopts Topic 842, it should apply that Topic prospectively to all new (or modified) land easements to determine whether the arrangement should be accounted for as a lease. An entity that does not elect this practical expedient should evaluate all existing or expired land easements in connection with the adoption of the new lease requirements in Topic 842 to assess whether they meet the definition of a lease. An entity should continue to apply its current accounting policy for accounting for land easements that existed before the entity’s adoption of Topic 842. For example, if an entity currently accounts for certain land easements as leases under Topic 840, it should continue to account for those land easements as leases before its adoption of Topic 842. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in Update 2016-02, for which the company is currently evaluating the impact. In June 2016, FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The ASU changed the credit loss model on financial instruments measured at amortized cost, available for sale securities and certain purchased financial instruments. Credit losses on financial instruments measured at amortized cost will be determined using a current expected credit loss model which requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. Purchased financial assets with more-than-insignificant credit deterioration since origination ("PCD assets" which are currently named "PCI Loans") measured at amortized cost will have an allowance for credit losses established at acquisition as part of the purchase price. Subsequent increases or decreases to the allowance for credit losses on PCD assets will be recognized in the income statement. Interest income should be recognized on PCD assets based on the effective interest rate, determined excluding the discount attributed to credit losses at acquisition. Credit losses relating to available-for-sale debt securities will be recognized through an allowance for credit losses. The amount of the credit loss is limited to the amount by which fair value is below amortized cost of the available-for-sale debt security. The amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years for the Company and other SEC filers. Early adoption is permitted and if early adopted, all provisions must be adopted in the same period. The amendments should be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the period adopted. A prospective approach is required for securities with other than temporary impairment recognized prior to adoption. The Company is continuing its implementation efforts through its Company-wide implementation team. The implementation team meets periodically to discuss the latest developments and ensure progress is being made. The team also keeps current on evolving interpretations and industry practices related to ASU 2016-13 via webcasts, publications, conferences, and peer bank meetings. The team continues to evaluate and validate data resources and different loss methodologies. The Company’s preliminary evaluation indicates the provisions of ASU No. 2016-13 are expected to impact the Company’s consolidated financial statements, in particular an increase to the level of the reserve for credit losses. However, the Company continues to evaluate the extent of the potential impact. In January 2017, FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The ASU simplifies the subsequent measurement of goodwill and eliminates Step 2 from the goodwill impairment test. The Company should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value. The impairment charge is limited to the amount of goodwill allocated to that reporting unit. The amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect these amendments to have a material effect on its consolidated financial statements. In March 2017, FASB issued ASU No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Topic 310-20): Premium Amortization on Purchased Callable Debt Securities. The ASU shortens the amortization period for certain callable debt securities held at a premium. The premium on individual callable debt securities shall be amortized to the earliest call date. This guidance does not apply to securities for which prepayments are estimated on a large number of similar loans where prepayments are probable and reasonably estimable. The amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. This update should be adopted on a modified retrospective basis with a cumulative-effect adjustment to retained earnings on the date of adoption. The Company does not expect these amendments to have a material effect on its consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities , which amends the hedge accounting recognition and presentation requirements in Accounting Standards Codification (ASC) 815, Derivatives and Hedging . The goals of the ASU are to (1) improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities by better aligning the entity’s financial reporting for hedging relationships with those risk management activities and (2) reduce the complexity of and simplify the application of hedge accounting by preparers . The amendments will be effective for the Company for interim and annual periods beginning after December 15, 2018. The Company does not expect these amendments to have a material effect on its consolidated financial statements. As part of its Simplification Initiative, the FASB has issued (ASU) No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting . ASU No. 2018-07 expands the scope of Topic 718, Compensation-Stock Compensation (which previously only included payments to employees), to include share-based payment transactions for acquiring goods and services from non-employees. This required entities to apply the requirements of Topic 718 to non-employee awards, except for specific guidance on inputs to an option pricing model and the attribution of cost (i.e., the period of time over which share-based payment awards vest and the pattern of cost recognition over that period). Additionally, the amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in the grantor’s own operations by issuing share-based payment awards, and clarify that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer, or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers . The amendments are effective for fiscal years beginning after December 15, 2018, and for the interim periods within those years. The Company does not expect these amendments to have a material effect on its consolidated financial statements. Reclassifications: Certain captions and amounts in the 2017 consolidated financial statements were reclassified to conform to the 2018 presentation and these reclassifications had no impact on net income or equity as previously reported. Earnings per common share: Basic earnings per common share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance (excluding tax impact). Potential common shares that may be issued by the Company relate solely to outstanding stock options, determined using the treasury stock method, and restricted stock awards, determined by the fair value of the Company's stock on date of grant. |
Business Combination (Q2)
Business Combination (Q2) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Business Combinations [Abstract] | ||
Business Combination | Note 2. Business Combination Acquisition of branch from Atlantic Capital Bank, N.A. On December 8, 2016, the Bank entered into a purchase and assumption agreement with Atlantic Capital Bank, N.A. that provided for the acquisition and assumption by the Bank of certain assets and liabilities associated with Atlantic Capital Bank’s branch office located at 3200 Keith Street NW, Cleveland, Tennessee 37312. The purchase was completed on May 19, 2017 for total cash consideration of $1.2 million. The assets and liabilities as of the effective date of the transaction were recorded at their respective estimated fair values. The excess of the purchase price over the net estimated fair values of the acquired assets and liabilities was allocated to identifiable intangible assets with the remaining excess allocated to goodwill. In the periods following the acquisition, the financial statements will include the results attributable to the Cleveland branch purchase beginning on the date of purchase. For the three and six months period ended June 30, 2018 , the revenues attributable to the Cleveland branch were $381 thousand and $754 thousand , respectively. For the three and six months period ended June 30, 2018 , net income attributable to the Cleveland branch was a net income of $105 thousand and net income of $194 thousand , respectively. It is impracticable to determine the pro-forma impact to the 2017 revenues and net income if the acquisition had occurred on January 1, 2017 as the Company does not have access to those records for a single branch. The following table details the financial impact of the transaction, including the allocation of the purchase price to the fair values of net assets assumed and goodwill recognized: Allocation of Purchase Price (in thousands) Total consideration in cash $ 1,183 Fair value of assets acquired and liabilities assumed: Cash and cash equivalents 133 Loans 24,073 Premises and equipment 2,839 Core deposit intangible 310 Prepaid and other assets 77 Deposits (26,888 ) Payables and other liabilities (21 ) Total fair value of net assets acquired 523 Goodwill $ 660 As of June 30, 2018 there have not been any changes to the initial fair values recorded as part of the business combination. Acquisition of Capstone Bancshares, Inc. On May 22, 2017, the shareholders of the Company approved a merger with Capstone Bancshares, Inc. ("Capstone"), the one bank holding company of Capstone Bank, which became effective November 1, 2017. Capstone shareholders received either: (a) 0.85 shares of common stock, (b) $18.50 in cash, or (c) a combination of 80% common stock and 20% cash. Elections were limited by the requirement that 80% of the total shares of Capstone common stock be exchanged for common stock and 20% be exchanged for cash. Therefore, the allocation of common stock and cash that a Capstone shareholder received depended on the elections of other Capstone shareholders, and were allocated in accordance with the procedures set forth in the merger agreement. Capstone shareholders also received cash instead of any fractional shares they would have otherwise received in the merger. After the merger, shareholders of SmartFinancial owned approximately 74% of the outstanding common stock of the combined entity on a fully diluted basis, after taking into account the exchange ratio. The merger is being accounted for using the acquisition method of accounting, in accordance with the provisions of FASB ASC 805-10 Business Combinations. Under this guidance, for accounting purposes, the Company is considered the acquirer in the merger, and as a result the historical financial statements of the combined entity are the historical consolidated financial statements of the Company. The merger was effected by the issuance of shares of SmartFinancial stock along with cash consideration to shareholders of Capstone. The assets and liabilities of Capstone as of the effective date of the merger were recorded at their respective estimated fair values and combined with those of SmartFinancial. The excess of the purchase price over the net estimated fair values of the acquired assets and liabilities was allocated to identifiable intangible assets with the remaining excess allocated to goodwill. Goodwill from the transaction was $38.0 million , none of which is deductible for income tax purposes. In periods following the merger, the financial statements of the combined entity will include the results attributable to Capstone beginning on the date the merger was completed. In the three and six month period ended June 30, 2018, the revenues attributable to Capstone were approximately $7.6 million and $14.5 million . In the three and six month period ended June 30, 2018, the net income attributable to Capstone was approximately $3.4 million and $6.0 million , respectively. The pro-forma impact to 2017 revenues if the merger had occurred on December 31, 2016 would have been $6.2 million and $12.5 million for the three and six month period ending June 30, 2017, respectively. The pro-forma impact to 2017 net income if the merger had occurred on December 31, 2016 would have been $237 thousand and $473 thousand for the three and six month period ending June 30, 2017, respectively. While certain adjustments were made for the estimated impact of certain fair value adjustments, they are not indicative of what would have occurred had the merger taken place on the indicated date nor are they intended to represent or be indicative of future results of operations. In particular, no adjustments have been made to eliminate the amount of Capstone's provision for credit losses not have been necessary or any adjustments to estimate any additional income that would have been recorded as a result of fair value adjustments for the first six months of 2017 that may have occurred had the acquired loans been recorded at fair value as of the beginning of 2017. In addition there are no adjustments to reflect any expenses that potentially could have been reduced for the first six months of 2017 had the merger occurred on December 31, 2016. There were $4.6 million in nonrecurring pro forma adjustments to expense included in the reported proforma revenue and earnings. The fair value estimates of Capstone’s assets and liabilities recorded are preliminary and subject to refinement as additional information becomes available. Under current accounting principles, the Company’s estimates of fair values may be adjusted for a period of up to one year from the acquisition date. As of June 30, 2018 there was a $11 thousand adjustment to reduce fair values initially recorded as part of the business combination. The following table details the financial impact of the merger, including the calculation of the purchase price, the allocation of the purchase price to the fair values of net assets assumed, and goodwill recognized: Calculation of Purchase Price Shares of SMBK common stock issued to Capstone shareholders as of November 1, 2017 2,908,094 Market price of SMBK common stock on November 1, 2017 $ 23.49 Estimated fair value of SMBK common stock issued (in thousands) 68,311 Estimated fair value of Capstone stock options (in thousands) 1,585 Cash consideration paid 15,826 Total consideration (in thousands) $ 85,722 Allocation of Purchase Price (in thousands) Total consideration above $ 85,722 Fair value of assets acquired and liabilities assumed: Cash and cash equivalents 16,810 Investment securities available for sale 51,638 Restricted investments 1,049 Loans 413,023 Premises and equipment 8,668 Bank owned life insurance 10,031 Core deposit intangible 5,530 Other real estate owned 410 Prepaid and other assets 6,360 Deposits (454,154 ) FHLB advances and other borrowings (4,887 ) Payables and other liabilities (6,803 ) Total fair value of net assets acquired 47,675 Goodwill $ 38,047 Acquisition of Tennessee Bancshares, Inc. On May 1, 2018, the Company completed its merger with Tennessee Bancshares, Inc., a Tennessee corporation (“Tennessee Bancshares”), pursuant to an Agreement and Plan of Merger dated December 12, 2017 (the “Tennessee Bancshares merger agreement”), by and among SmartFinancial, Tennessee Bancshares, and Southern Community Bank, a Tennessee-chartered commercial bank and wholly owned subsidiary of Tennessee Bancshares. Tennessee Bancshares merged with and into SmartFinancial, with SmartFinancial continuing as the surviving corporation. Immediately following the merger, Southern Community Bank merged with and into the Bank continuing as the surviving banking corporation. Pursuant to the Tennessee Bancshares merger agreement, each outstanding share of Tennessee Bancshares common stock was converted into and cancelled in exchange for 0.8065 shares of SmartFinancial common stock.. SmartFinancial issued approximately 1,458,981 shares of SmartFinancial common stock as consideration for the merger. SmartFinancial did not issue fractional shares of its common stock in connection with the merger, but instead paid cash in lieu of fractional shares based on the volume weighted average closing price of SmartFinancial common stock on the Nasdaq Capital Market for the 10 consecutive trading days ending on (and including) April 27, 2018 (calculated as $23.92 ). After the merger, shareholders of SmartFinancial owned approximately 88.6% of the outstanding common stock of the combined entity on a fully diluted basis, after taking into account the exchange ratio. The merger with Tennessee Bancshares is being accounted for using the acquisition method of accounting, in accordance with the provisions of FASB ASC 805-10 Business Combinations. Under this guidance, for accounting purposes, the Company is considered the acquirer in the merger, and as a result the historical financial statements of the combined entity are the historical consolidated financial statements of the Company. The merger was effected by the issuance of shares of SmartFinancial stock along with cash consideration to the fractional shareholders of Tennessee Bancshares, Inc. The assets and liabilities of Tennessee Bancshares as of the effective date of the merger were recorded at their respective estimated fair values and combined with those of SmartFinancial. The excess of the purchase price over the net estimated fair values of the acquired assets and liabilities was allocated to identifiable intangible assets with the remaining excess allocated to goodwill. Goodwill from the transaction was $15.7 million , none of which is deductible for income tax purposes. In periods following the Tennessee Bancshares merger, the financial statements of the combined entity will include the results attributable to Southern Community Bank beginning on the date the merger was completed. In the three and six months period ended June 30, 2018, the revenues and net income attributable to Southern Community Bank were approximately $2.4 million and $800 thousand , respectively. The pro-forma impact to 2017 revenues if the merger had occurred on December 31, 2016 would have been $3.7 million and $7.3 million for the three and six month period ending June 30, 2017, respectively. The pro-forma impact to 2017 net income if the merger had occurred on December 31, 2016 would have been $909 thousand and $1.8 million for the three and six month period ending June 30, 2017, respectively. While certain adjustments were made for the estimated impact of certain fair value adjustments, they are not indicative of what would have occurred had the merger taken place on the indicated date nor are they intended to represent or be indicative of future results of operations. In particular, no adjustments have been made to eliminate the amount of Southern Community Bank's provision for credit losses not have been necessary or any adjustments to estimate any additional income that would have been recorded as a result of fair value adjustments for the first six months of 2017 that may have occurred had the acquired loans been recorded at fair value as of the beginning of 2017. In addition there are no adjustments to reflect any expenses that potentially could have been reduced for the first six months of 2017 had the merger occurred on December 31, 2016. There were $1.3 million nonrecurring pro forma adjustments to expense included in the reported proforma earnings. The fair value estimates of Tennessee Bancshares assets and liabilities recorded are preliminary and subject to refinement as additional information becomes available. Under current accounting principles, the Company’s estimates of fair values may be adjusted for a period of up to one year from the acquisition date. As of June 30, 2018 there were no adjustments to fair values initially recorded as part of the business combination. The following table details the financial impact of the merger, including the calculation of the purchase price, the allocation of the purchase price to the fair values of net assets assumed, and goodwill recognized: Calculation of Purchase Price Shares of SMBK common stock issued to TN Bancshares shareholders as of May 1, 2018 1,458,981 Market price of SMBK common stock on May 1, 2018 $ 23.85 Estimated fair value of SMBK common stock issued (in thousands) 34,797 Cash consideration paid 5 Total consideration (in thousands) $ 34,802 Allocation of Purchase Price (in thousands) Total consideration above $ 34,802 Fair value of assets acquired and liabilities assumed: Cash and cash equivalents 5,723 Investment securities available for sale 24,563 Restricted investments 464 Loans 180,490 Premises and equipment 9,470 Core deposit intangible 2,290 Other real estate owned 674 Prepaid and other assets 2,258 Deposits (202,272 ) FHLB advances and other borrowings (4,000 ) Payables and other liabilities (586 ) Total fair value of net assets acquired 19,074 Goodwill $ 15,728 | Note 2. Business Combinations On December 8, 2016, the Bank entered into a purchase and assumption agreement with Atlantic Capital Bank, N.A. that provided for the acquisition and assumption by the Bank of certain assets and liabilities associated with Atlantic Capital Bank’s branch office located at 3200 Keith Street NW, Cleveland, Tennessee 37312. The purchase was completed on May 19, 2017 for total cash consideration of $1,183,007 . The assets and liabilities as of the effective date of the transaction were recorded at their respective estimated fair values. The excess of the purchase price over the net estimated fair values of the acquired assets and liabilities was allocated to identifiable intangible assets with the remaining excess allocated to goodwill. In the periods following the acquisition, the financial statements will include the results attributable to the Cleveland branch purchase beginning on the date of purchase. For the twelve months period ended December 31, 2017, the revenues and net income attributable to the Cleveland branch were $903,311 and $63,385 , respectively. It is impracticable to determine the pro-forma impact to the 2017 revenues and net income if the acquisition had occurred on January 1, 2017 as the Company does not have access to those records for a single branch. The following table details the financial impact of the transaction, including the allocation of the purchase price to the fair values of net assets assumed and goodwill recognized: Allocation of Purchase Price (in thousands) Total consideration in cash $ 1,183 Fair value of assets acquired and liabilities assumed: Cash and cash equivalents 133 Loans 24,073 Premises and equipment 2,839 Core deposit intangible 310 Prepaid and other assets 77 Deposits (26,888 ) Payables and other liabilities (21 ) Total fair value of net assets acquired 523 Goodwill $ 660 As of December 31, 2017 there have not been any changes to the initial fair values recorded as part of the business combination. On May 22, 2017, the shareholders of the SmartFinancial, Inc (“ SmartFinancial ”) approved a merger with Capstone Bancshares, Inc. ("Capstone"), the one bank holding company of Capstone Bank, which became effective November 1, 2017. Capstone shareholders received either: (a) 0.85 shares of SmartFinancial common stock, (b) $18.50 in cash, or (c) a combination of 80% SmartFinancial common stock and 20% cash. Elections were limited by the requirement that 80% of the total shares of Capstone common stock be exchanged for SmartFinancial common stock and 20% be exchanged for cash. Therefore, the allocation of SmartFinancial common stock and cash that a Capstone shareholder received depended on the elections of other Capstone shareholders, and were allocated in accordance with the procedures set forth in the merger agreement. Capstone shareholders also received cash instead of any fractional shares they would have otherwise received in the merger. After the merger, shareholders of SmartFinancial owned approximately 74% of the outstanding common stock of the combined entity on a fully diluted basis, after taking into account the exchange ratio. The merger is being accounted for using the acquisition method of accounting, in accordance with the provisions of FASB ASC 805-10 Business Combinations. Under this guidance, for accounting purposes, SmartFinancial is considered the acquirer in the merger, and as a result the historical financial statements of the combined entity will be the historical financial statements of SmartFinancial. The merger was effected by the issuance of shares of SmartFinancial stock along with cash consideration to shareholders of Capstone. The assets and liabilities of Capstone as of the effective date of the merger were recorded at their respective estimated fair values and combined with those of SmartFinancial. The excess of the purchase price over the net estimated fair values of the acquired assets and liabilities was allocated to identifiable intangible assets with the remaining excess allocated to goodwill. Goodwill from the transaction was $38.0 million , none of which is deductible for income tax purposes. In periods following the merger, the financial statements of the combined entity will include the results attributable to Capstone beginning on the date the merger was completed. In the period ended December 31, 2017, the revenues and net income attributable to Capstone were $5.0 million and $0.2 million , respectively. The pro-forma impact to 2017 revenues and net income if the merger had occurred on December 31, 2016 would have been $24.9 million and $947 thousand , respectively. The fair value estimates of Capstone’s assets and liabilities recorded are preliminary and subject to refinement as additional information becomes available. Under current accounting principles, the Company’s estimates of fair values may be adjusted for a period of up to one year from the acquisition date. The following table details the financial impact of the merger, including the calculation of the purchase price, the allocation of the purchase price to the fair values of net assets assumed, and goodwill recognized: Calculation of Purchase Price Shares of SMBK common stock issued to Capstone shareholders as of November 1, 2017 2,908,094 Market price of SMBK common stock on November 1, 2017 $ 23.49 Estimated fair value of SMBK common stock issued (in thousands) 68,311 Estimated fair value of Capstone stock options (in thousands) 1,585 Cash consideration paid 15,826 Total consideration (in thousands) $ 85,722 Allocation of Purchase Price (in thousands) Total consideration above $ 85,722 Fair value of assets acquired and liabilities assumed: Cash and cash equivalents 16,810 Investment securities available for sale 51,638 Restricted investments 1,049 Loans 413,023 Premises and equipment 8,668 Bank owned life insurance 10,031 Core deposit intangible 5,530 Other real estate owned 410 Prepaid and other assets 6,360 Deposits (454,154 ) FHLB advances and other borrowings (4,887 ) Payables and other liabilities (6,803 ) Total fair value of net assets acquired 47,675 Goodwill $ 38,047 |
Earnings per share (Q2)
Earnings per share (Q2) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Earnings Per Share | Note 3. Earnings per share The following is a summary of the basic and diluted earnings per share for the three and six months ended June 30, 2018 and 2017 . Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Net income available to common shareholders $ 3,931,556 $ 1,648,286 $ 7,346,326 $ 3,097,138 Weighted average common shares outstanding 12,201,185 8,216,567 11,708,746 7,872,609 Effect of dilutive stock options 119,313 108,971 113,751 104,673 Diluted shares 12,320,498 8,325,538 11,822,497 7,977,282 Basic earnings per common share $ 0.32 $ 0.20 $ 0.63 $ 0.39 Diluted earnings per common share $ 0.32 $ 0.20 $ 0.62 $ 0.39 For the three and six months ended June 30, 2018 and 2017 , the effects of outstanding antidilutive stock options are excluded from the computation of diluted earnings per common share because the exercise price of such options is higher than the market price. There were no and 13,916 antidilutive stock options for the three and six months ended June 30, 2018 and 2017 | Note 18. Earnings Per Share Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding. Diluted earnings per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding and dilutive common share equivalents using the treasury stock method. Dilutive common share equivalents include common shares issuable upon exercise of outstanding stock options and restricted stock. The effect from the stock options on incremental shares from the assumed conversions for net income per share-basic and net income per share-diluted are presented below. There were antidilutive shares of 13,166 and 17,649 for the years ended December 31, 2017 and 2016 , respectively. (Dollars in thousands, except share amounts) 2017 2016 Basic earnings per share computation: Net income available to common stockholders $ 4,820 $ 4,777 Average common shares outstanding – basic 8,639,212 5,838,574 Basic earnings per share $ 0.56 $ 0.82 Diluted earnings per share computation: Net income available to common stockholders $ 4,820 $ 4,777 Average common shares outstanding – basic 8,639,212 5,838,574 Incremental shares from assumed conversions: Stock options 154,315 280,369 Average common shares outstanding - diluted 8,793,527 6,118,943 Diluted earnings per share $ 0.55 $ 0.78 |
Securities (Q2)
Securities (Q2) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||
Securities | Note 4. Securities The amortized cost and fair value of securities available-for-sale at June 30, 2018 and December 31, 2017 are summarized as follows (in thousands): June 30, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Government-sponsored enterprises (GSEs) $ 29,137 $ — $ (1,009 ) $ 28,128 Municipal securities 15,896 8 (320 ) 15,584 Other debt securities 976 — (65 ) 911 Mortgage-backed securities (GSEs) 114,538 171 (2,755 ) 111,954 $ 160,547 $ 179 $ (4,149 ) $ 156,577 December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Government-sponsored enterprises (GSEs) $ 26,207 $ 1 $ (432 ) $ 25,776 Municipal securities 9,122 28 (147 ) 9,003 Other debt securities 974 — (24 ) 950 Mortgage-backed securities (GSEs) 117,263 136 (1,184 ) 116,215 $ 153,566 $ 165 $ (1,787 ) $ 151,944 At June 30, 2018 and December 31, 2017, securities with a fair value totaling approximately $113.5 million and $97.2 million, respectively were pledged to secure public funds and securities sold under agreements to repurchase. For the three and six months ended June 30, 2018 and June 30, 2017 , there were no available-for-sale securities sold. For the three and six months ended June 30, 2018, a security was called for less than the amortized cost resulting in a realized loss of $1,200 . The amortized cost and estimated fair value of securities at June 30, 2018 , by contractual maturity for non-mortgage backed securities, are shown below (in thousands). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Fair Value Due in one year or less $ — $ — Due from one year to five years 21,554 20,901 Due from five years to ten years 13,995 13,366 Due after ten years 10,460 10,356 46,009 44,623 Mortgage-backed securities 114,538 111,954 $ 160,547 $ 156,577 The following tables present the gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities available-for-sale have been in a continuous unrealized loss position, as of June 30, 2018 and December 31, 2017 (in thousands): As of June 30, 2018 Less than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses U.S. Government- sponsored enterprises (GSEs) $ 14,862 $ (425 ) $ 13,266 $ (584 ) $ 28,128 $ (1,009 ) Municipal securities 11,966 (182 ) 2,072 (138 ) 14,038 (320 ) Other debt securities — — 911 (65 ) 911 (65 ) Mortgage-backed securities (GSEs) 58,377 (1,654 ) 29,911 (1,101 ) 88,288 (2,755 ) $ 85,205 $ (2,261 ) $ 46,160 $ (1,888 ) $ 131,365 $ (4,149 ) As of December 31, 2017 Less than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses U.S. Government- sponsored enterprises (GSEs) $ 1,358 $ (1 ) $ 13,420 $ (431 ) $ 14,778 $ (432 ) Municipal securities 3,418 (43 ) 2,112 (104 ) 5,530 (147 ) Other debt securities 950 (24 ) — — 950 (24 ) Mortgage-backed securities (GSEs) 61,332 (407 ) 35,048 (777 ) 96,380 (1,184 ) $ 67,058 $ (475 ) $ 50,580 $ (1,312 ) $ 117,638 $ (1,787 ) At June 30, 2018 , the categories of temporarily impaired securities, and management’s evaluation of those securities, are as follows: U.S. Government-sponsored enterprises : At June 30, 2018 , 8 (or eight) investments in U.S. GSE securities had unrealized losses. These unrealized losses related principally to changes in market interest rates. The contractual terms of the investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Bank does not intend to sell the investments and it is more likely than not that the Bank will not be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Bank does not consider these investments to be other-than temporarily impaired at June 30, 2018 . Municipal securities : At June 30, 2018 , 21 (or twenty one) investments in obligations of municipal securities had unrealized losses. The Bank believes the unrealized losses on those investments were caused by the interest rate environment and do not relate to the underlying credit quality of the issuers. Because the Bank does not intend to sell the investments and it is not more likely than not that the Bank will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Bank does not consider these investments to be other-than temporarily impaired at June 30, 2018 . Other debt securities : At June 30, 2018 , 1 (or one) investment in other debt securities had unrealized losses. The Bank believes the unrealized loss on this investment was caused by the interest rate environment and does not relate to the underlying credit quality of the issuer. Because the Bank does not intend to sell the investment and it is not more likely than not that the Bank will be required to sell the investment before recovery of its amortized cost bases, which may be maturity, the Bank does not consider this investment to be other-than temporarily impaired at June 30, 2018 . Mortgage-backed securities : At June 30, 2018 , 65 (or sixty five) investments in residential mortgage-backed securities had unrealized losses. This impairment is believed to be caused by the current interest rate environment. The contractual cash flows of those investments are guaranteed by an agency of the U.S. Government. Because the decline in market value is attributable to the current interest rate environment and not credit quality, and because the Bank does not intend to sell the investments and it is not more likely than not that the Bank will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Bank does not deem these investments to be other-than-temporarily impaired at June 30, 2018 . | Note 3. Securities The amortized cost and fair value of securities available-for-sale at December 31, 2017 and 2016 are summarized as follow (in thousands): December 31, 2017 Amortized Gross Gross Fair U.S. Government-sponsored enterprises (GSEs) $ 26,207 $ 1 $ (432 ) $ 25,776 Municipal securities 9,122 28 (147 ) 9,003 Other debt securities 974 — (24 ) 950 Mortgage-backed securities 117,263 136 (1,184 ) 116,215 Total $ 153,566 $ 165 $ (1,787 ) $ 151,944 December 31, 2016 Amortized Gross Gross Fair U.S. Government-sponsored enterprises (GSEs) $ 18,279 $ 8 $ (564 ) $ 17,723 Municipal securities 8,182 16 (179 ) 8,019 Mortgage-backed securities 104,585 185 (1,090 ) 103,680 Total $ 131,046 $ 209 $ (1,833 ) $ 129,422 The amortized cost and estimated market value of securities at December 31, 2017 , by contractual maturity, are shown below (in thousands). Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Fair Due in one year or less $ 2,174 $ 2,175 Due from one year to five years 21,606 21,292 Due from five years to ten years 8,037 7,822 Due after ten years 4,486 4,440 36,303 35,729 Mortgage-backed securities 117,263 116,215 Total $ 153,566 $ 151,944 The following tables present the gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities available-for-sale have been in a continuous unrealized loss position, as of December 31, 2017 and 2016 (in thousands): As of December 31, 2017 Less than 12 Months 12 Months or Greater Total Fair Gross Fair Gross Fair Gross U.S. Government- sponsored enterprises (GSEs) $ 1,358 $ (1 ) $ 13,420 $ (431 ) $ 14,778 $ (432 ) Municipal securities 3,418 (43 ) 2,112 (104 ) 5,530 (147 ) Other debt securities 950 (24 ) — — 950 (24 ) Mortgage-backed securities 61,332 (407 ) 35,048 (777 ) 96,380 (1,184 ) Total $ 67,058 $ (475 ) $ 50,580 $ (1,312 ) $ 117,638 $ (1,787 ) As of December 31, 2016 Less than 12 Months 12 Months or Greater Total Fair Gross Fair Gross Fair Gross U.S. Government- sponsored enterprises (GSEs) $ 14,702 $ (564 ) $ — $ — $ 14,702 $ (564 ) Municipal securities 6,368 (179 ) — — 6,368 (179 ) Mortgage-backed securities 67,063 (690 ) 8,948 (400 ) 76,011 (1,090 ) Total $ 88,133 $ (1,433 ) $ 8,948 $ (400 ) $ 97,081 $ (1,833 ) At December 31, 2017 , the categories of temporarily impaired securities, and management’s evaluation of those securities, are as follows: U.S. Government-sponsored enterprises: At December 31, 2017 , six investments in U.S. GSE securities had unrealized losses. These unrealized losses related principally to changes in market interest rates. The contractual terms of the investments does not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Bank does not intend to sell the investments and it is more likely than not that the Bank will not be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Bank does not consider these investments to be other-than temporarily impaired at December 31, 2017 . Municipal securities: At December 31, 2017 , thirteen investments in obligations of municipal securities had unrealized losses. The Bank believes the unrealized losses on those investments were caused by the interest rate environment and do not relate to the underlying credit quality of the issuers. Because the Bank does not intend to sell the investments and it is not more likely than not that the Bank will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Bank does not consider these investments to be other than temporarily impaired at December 31, 2017 . Other debt securities: At December 31, 2017 , one investment in other debt securities had unrealized losses. The Bank believes the unrealized losses on this investment was caused by the interest rate environment and does not relate to the underlying credit quality of the issuers. Because the Bank does not intend to sell the investment and it is not more likely than not that the Bank will be required to sell the investment before recovery of their amortized cost bases, which may be maturity, the Bank does not consider this investment to be other than temporarily impaired at December 31, 2017 . Mortgage-backed securities: At December 31, 2017 , sixty investments in residential mortgage-backed securities had unrealized losses. This impairment is believed to be caused by the current interest rate environment. The contractual cash flows of those investments are guaranteed by an agency of the U.S. Government. Because the decline in market value is attributable to the current interest rate environment and not credit quality, and because the Bank does not intend to sell the investments and it is not more likely than not that the Bank will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Bank does not consider these investments to be other than temporarily impaired at December 31, 2017 . Sales of available for sale securities for the years ended December 31, 2017 and 2016 , were as follows (in thousands): 2017 2016 Proceeds $ 12,614 $ 31,599 Gains realized 145 200 Losses realized 2 — Securities with a carrying value of $97,160,059 and $86,351,097 at December 31, 2017 and 2016 , respectively, were pledged to secure various deposits, securities sold under agreements to repurchase, as collateral for federal funds purchased from other financial institutions and serve as collateral for borrowings at the Federal Home Loan Bank. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses (Q2) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | ||
Loans and Allowance for Loan Losses | Note 5. Loans and Allowance for Loan Losses Portfolio Segmentation: At June 30, 2018 and December 31, 2017 , loans are summarized as follows (in thousands): June 30, 2018 December 31, 2017 PCI Loans 1 All Other Loans Total PCI Loans 1 All Other Loans Total Commercial real estate $ 18,474 $ 727,390 $ 745,864 $ 17,903 $ 625,085 $ 642,988 Consumer real estate 6,987 348,889 355,876 7,450 286,007 293,457 Construction and land development 5,690 173,741 179,431 5,120 130,289 135,409 Commercial and industrial 821 278,950 279,771 858 237,229 238,087 Consumer and other 686 13,807 14,493 1,463 11,854 13,317 Total loans 32,658 1,542,777 1,575,435 32,794 1,290,464 1,323,258 Less: Allowance for loan losses (19 ) (7,055 ) (7,074 ) (16 ) (5,844 ) (5,860 ) Loans, net $ 32,639 $ 1,535,722 $ 1,568,361 $ 32,778 $ 1,284,620 $ 1,317,398 1 Purchased Credit Impaired loans (“PCI loans”) are loans with evidence of credit deterioration at purchase. For purposes of the disclosures required pursuant to the adoption of ASC 310, the loan portfolio was disaggregated into segments. A portfolio segment is defined as the level at which an entity develops and documents a systematic method for determining its allowance for credit losses. There are five loan portfolio segments that include commercial real estate, consumer real estate, construction and land development, commercial and industrial, and consumer and other. The following describe risk characteristics relevant to each of the portfolio segments: Commercial Real Estate: Commercial real estate loans include owner-occupied commercial real estate loans and loans secured by income-producing properties. Owner-occupied commercial real estate loans to operating businesses are long-term financing of land and buildings. These loans are repaid by cash flow generated from the business operation. Real estate loans for income-producing properties such as apartment buildings, office and industrial buildings, and retail shopping centers are repaid from rent income derived from the properties. Loans within this portfolio segment are particularly sensitive to the valuation of real estate. Consumer Real Estate: Consumer real estate loans include real estate loans secured by first liens, second liens, or open end real estate loans, such as home equity lines. These are repaid by various means such as a borrower's income, sale of the property, or rental income derived from the property. One to four family first mortgage loans are repaid by various means such as a borrower's income, sale of the property, or rental income derived from the property. Loans within this portfolio segment are particularly sensitive to the valuation of real estate. Construction and Land Development: Loans for real estate construction and development are repaid through cash flow related to the operations, sale or refinance of the underlying property. This portfolio segment includes extensions of credit to real estate developers or investors where repayment is dependent on the sale of the real estate or income generated from the real estate collateral. Loans within this portfolio segment are particularly sensitive to the valuation of real estate. Commercial and Industrial: The commercial and industrial loan portfolio segment includes commercial, financial, agricultural, and municipal loans. These loans include those loans to commercial customers for use in normal business operations to finance working capital needs, equipment purchases, or expansion projects. Loans are repaid by business cash flows. Collection risk in this portfolio is driven by the creditworthiness of the underlying borrower, particularly cash flows from the customers' business operations. Consumer and Other: The consumer loan portfolio segment includes direct consumer installment loans, overdrafts and other revolving credit loans, educational loans, and other loans which do not fall into the categories above. Loans in this portfolio are sensitive to unemployment and other key consumer economic measures. Credit Risk Management: The Company employs a credit risk management process with defined policies, accountability and routine reporting to manage credit risk in the loan portfolio segments. Credit risk management is guided by credit policies that provide for a consistent and prudent approach to underwriting and approvals of credits. Within the Credit Policy, procedures exist that elevate the approval requirements as credits become larger and more complex. All loans are individually underwritten, risk-rated, approved, and monitored. Responsibility and accountability for adherence to underwriting policies and accurate risk ratings lies in each portfolio segment. For the consumer real estate and consumer and other portfolio segments, the risk management process focuses on managing customers who become delinquent in their payments. For the other portfolio segments, the risk management process focuses on underwriting new business and, on an ongoing basis, monitoring the credit of the portfolios, including a third party review of the largest credits on an annual basis or more frequently as needed. To ensure problem credits are identified on a timely basis, several specific portfolio reviews occur periodically to assess the larger adversely rated credits for proper risk rating and accrual status. Credit quality and trends in the loan portfolio segments are measured and monitored regularly. Detailed reports, by product, collateral, accrual status, etc., are reviewed by the Senior Credit Officer and the Directors Loan Committee. The allowance for loan losses is a valuation reserve allowance established through provisions for loan losses charged against income. The allowance for loan losses, which is evaluated quarterly, is maintained at a level that management deems sufficient to absorb probable losses inherent in the loan portfolio. Loans deemed to be uncollectible are charged against the allowance for loan losses, while recoveries of previously charged-off amounts are credited to the allowance for loan losses. The allowance for loan losses is comprised of specific valuation allowances for loans evaluated individually for impairment and general allocations for pools of homogeneous loans with similar risk characteristics and trends. The allowance for loan losses related to specific loans is based on management's estimate of potential losses on impaired loans as determined by (1) the present value of expected future cash flows; (2) the fair value of collateral if the loan is determined to be collateral dependent or (3) the loan's observable market price. The Company's homogeneous loan pools include commercial real estate loans, consumer real estate loans, construction and land development loans, commercial and industrial loans, and consumer and other loans. The general allocations to these loan pools are based on the historical loss rates for specific loan types and the internal risk grade, if applicable, adjusted for both internal and external qualitative risk factors. The qualitative factors considered by management include, among other factors, (1) changes in local and national economic conditions; (2) changes in asset quality; (3) changes in loan portfolio volume; (4) the composition and concentrations of credit; (5) the impact of competition on loan structuring and pricing; (6) the impact of interest rate changes on portfolio risk and (7) effectiveness of the Company's loan policies, procedures and internal controls. The total allowance established for each homogeneous loan pool represents the product of the historical loss ratio adjusted for qualitative factors and the total dollar amount of the loans in the pool. The composition of loans by loan classification for impaired and performing loan status at June 30, 2018 and December 31, 2017 , is summarized in the tables below (in thousands): June 30, 2018 Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Performing loans $ 726,356 $ 347,893 $ 173,194 $ 278,431 $ 13,698 $ 1,539,572 Impaired loans 1,034 996 547 519 109 3,205 727,390 348,889 173,741 278,950 13,807 1,542,777 PCI loans 18,474 6,987 5,690 821 686 32,658 Total $ 745,864 $ 355,876 $ 179,431 $ 279,771 $ 14,493 $ 1,575,435 December 31, 2017 Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Performing loans $ 624,638 $ 284,585 $ 129,742 $ 237,016 $ 11,842 $ 1,287,823 Impaired loans 447 1,422 547 213 12 2,641 625,085 286,007 130,289 237,229 11,854 1,290,464 PCI loans 17,903 7,450 5,120 858 1,463 32,794 Total loans $ 642,988 $ 293,457 $ 135,409 $ 238,087 $ 13,317 $ 1,323,258 The following tables show the allowance for loan losses allocation by loan classification for impaired, PCI, and performing loans as of June 30, 2018 and December 31, 2017 (in thousands): June 30, 2018 Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Performing loans $ 3,116 $ 1,491 $ 744 $ 1,145 $ 224 $ 6,720 PCI loans 19 — — — — 19 Impaired loans — 37 — 222 76 335 Total $ 3,135 $ 1,528 $ 744 $ 1,367 $ 300 $ 7,074 December 31, 2017 Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Performing loans $ 2,444 $ 1,340 $ 521 $ 890 $ 204 $ 5,399 PCI loans 16 — — — — 16 Impaired loans 5 256 — 172 12 445 Total $ 2,465 $ 1,596 $ 521 $ 1,062 $ 216 $ 5,860 The following tables detail the changes in the allowance for loan losses for the six month period ending June 30, 2018 and year ending December 31, 2017 , by loan classification (in thousands): June 30, 2018 Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Beginning balance $ 2,465 $ 1,596 $ 521 $ 1,062 $ 216 $ 5,860 Loans charged off (38 ) (25 ) — (78 ) (101 ) (242 ) Recoveries of loans charged off — 50 5 56 40 151 Provision (reallocation) charged to expense 708 (93 ) 218 327 145 1,305 Ending balance $ 3,135 $ 1,528 $ 744 $ 1,367 $ 300 $ 7,074 December 31, 2017 Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Beginning balance $ 2,369 $ 1,382 $ 717 $ 520 $ 117 $ 5,105 Loans charged off — (111 ) — (24 ) (141 ) (276 ) Recoveries of charge-offs 8 99 13 67 61 248 Provision (reallocation) charged to expense 88 226 (209 ) 499 179 783 Ending balance $ 2,465 $ 1,596 $ 521 $ 1,062 $ 216 $ 5,860 A description of the general characteristics of the risk grades used by the Company is as follows: Pass: Loans in this risk category involve borrowers of acceptable-to-strong credit quality and risk who have the apparent ability to satisfy their loan obligations. Loans in this risk grade would possess sufficient mitigating factors, such as adequate collateral or strong guarantors possessing the capacity to repay the debt if required, for any weakness that may exist. Special Mention: Loans in this risk grade are the equivalent of the regulatory definition of "Other Assets Especially Mentioned" classification. Loans in this category possess some credit deficiency or potential weakness, which requires a high level of management attention. Potential weaknesses include declining trends in operating earnings and cash flows and /or reliance on the secondary source of repayment. If left uncorrected, these potential weaknesses may result in noticeable deterioration of the repayment prospects for the asset or in the Company's credit position. Substandard: Loans in this risk grade are inadequately protected by the borrower's current financial condition and payment capability or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the orderly repayment of debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful: Loans in this risk grade have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or orderly repayment in full, on the basis of current existing facts, conditions and values, highly questionable and improbable. Possibility of loss is extremely high, but because of certain important and reasonably specific factors that may work to the advantage and strengthening of the exposure, its classification as an estimated loss is deferred until its more exact status may be determined. Uncollectible: Loans in this risk grade are considered to be non-collectible and of such little value that their continuance as bankable assets is not warranted. This does not mean the loan has absolutely no recovery value, but rather it is neither practical nor desirable to defer writing off the loan, even though partial recovery may be obtained in the future. Charge-offs against the allowance for loan losses are taken in the period in which the loan becomes uncollectible. Consequently, the Company typically does not maintain a recorded investment in loans within this category. The following tables outline the amount of each loan classification and the amount categorized into each risk rating as of June 30, 2018 and December 31, 2017 (in thousands): June 30, 2018 Non PCI Loans Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Pass $ 724,763 $ 343,407 $ 172,972 $ 277,384 $ 13,184 $ 1,531,710 Watch 1,604 3,168 62 1,035 123 5,992 Special mention — 949 160 35 363 1,507 Substandard 1,023 1,365 547 483 111 3,529 Doubtful — — — 13 26 39 Total $ 727,390 $ 348,889 $ 173,741 $ 278,950 $ 13,807 $ 1,542,777 PCI Loans Pass $ 14,494 $ 4,558 $ 3,973 $ 210 $ 565 $ 23,800 Watch 1,513 898 653 2 18 3,084 Special mention 1,393 575 716 153 17 2,854 Substandard 1,074 956 348 456 86 2,920 Doubtful — — — — — — Total $ 18,474 $ 6,987 $ 5,690 $ 821 $ 686 $ 32,658 Total loans $ 745,864 $ 355,876 $ 179,431 $ 279,771 $ 14,493 $ 1,575,435 December 31, 2017 Non PCI Loans Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Pass $ 616,028 $ 279,464 $ 129,359 $ 233,942 $ 11,624 $ 1,270,417 Watch 7,673 2,543 383 3,007 62 13,668 Special mention 1,006 2,627 — 64 155 3,852 Substandard 378 1,159 547 157 — 2,241 Doubtful — 214 — 59 13 286 Total $ 625,085 $ 286,007 $ 130,289 $ 237,229 $ 11,854 $ 1,290,464 PCI Loans Pass $ 14,386 $ 4,151 $ 4,134 $ 68 $ 819 $ 23,558 Watch 261 1,345 649 120 262 2,637 Special mention — 456 — 58 24 538 Substandard 3,084 1,192 337 588 107 5,308 Doubtful 172 306 — 24 251 753 Total $ 17,903 $ 7,450 $ 5,120 $ 858 $ 1,463 $ 32,794 Total loans $ 642,988 $ 293,457 $ 135,409 $ 238,087 $ 13,317 $ 1,323,258 Past Due Loans: A loan is considered past due if any required principal and interest payments have not been received as of the date such payments were required to be made under the terms of the loan agreement. Generally, management places a loan on nonaccrual when there is a clear indicator that the borrower’s cash flow may not be sufficient to meet payments as they become due, which is generally when a loan is 90 days past due. The following tables present the aging of the recorded investment in loans as of June 30, 2018 and December 31, 2017 (in thousands): June 30, 2018 30-89 Days Past Due and Accruing Past Due 90 Days or More and Accruing Nonaccrual Total Past Due and NonAccrual PCI Loans Current Loans Total Loans Commercial real estate $ 2,628 $ 82 $ 6 $ 2,716 $ 18,474 $ 724,674 $ 745,864 Consumer real estate 701 76 463 1,240 6,987 347,649 355,876 Construction and land development 403 338 547 1,288 5,690 172,453 179,431 Commercial and industrial 647 113 430 1,190 821 277,760 279,771 Consumer and other 189 58 92 339 686 13,468 14,493 Total $ 4,568 $ 667 $ 1,538 $ 6,773 $ 32,658 $ 1,536,004 $ 1,575,435 December 31, 2017 30-89 Days Past Due and Accruing Past Due 90 Days or More and Accruing Nonaccrual Total Past Due and NonAccrual PCI Loans Current Loans Total Loans Commercial real estate $ 517 $ 728 $ 128 $ 1,373 $ 17,903 $ 623,712 $ 642,988 Consumer real estate 963 33 991 1,987 7,450 284,020 293,457 Construction and land development 65 326 547 938 5,120 129,351 135,409 Commercial and industrial 286 131 85 502 858 236,727 238,087 Consumer and other 165 291 13 469 1,463 11,385 13,317 Total $ 1,996 $ 1,509 $ 1,764 $ 5,269 $ 32,794 $ 1,285,195 $ 1,323,258 Impaired Loans: The following is an analysis of the impaired loan portfolio, excluding PCI loans, detailing the related allowance recorded as of June 30, 2018 and December 31, 2017 (in thousands): For the six months ended At June 30, 2018 June 30, 2018 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Impaired loans without a valuation allowance: Commercial real estate $ 1,034 $ 1,043 $ — $ 670 $ 15 Consumer real estate 793 823 — 699 12 Construction and land development 547 547 — 547 — Commercial and industrial 81 83 — 58 3 Consumer and other 16 16 — 5 — 2,471 2,512 — 1,979 30 Impaired loans with a valuation allowance: Commercial real estate — — — 8 — Consumer real estate 203 216 37 642 11 Construction and land development — — — — — Commercial and industrial 438 440 222 257 5 Consumer and other 93 95 76 72 2 734 751 335 979 18 PCI loans: Commercial real estate 27 127 19 5 3 Total impaired loans $ 3,232 $ 3,390 $ 354 $ 2,963 $ 51 For the year ended At December 31, 2017 December 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Impaired loans without a valuation allowance: Commercial real estate $ 424 $ 454 $ — $ 204 $ 44 Consumer real estate 415 420 — 401 16 Construction and land development 547 547 — 628 — Commercial and industrial 41 41 — 44 3 Consumer and other — — — — — 1,427 1,462 — 1,277 63 Impaired loans with a valuation allowance: Commercial real estate 23 23 5 5 1 Consumer real estate 1,007 1,033 256 601 38 Construction and land development — — — — — Commercial and industrial 172 172 172 117 10 Consumer and other 12 13 12 2 1 1,214 1,241 445 725 50 PCI loans: Commercial real estate 16 123 16 3 16 Total impaired loans $ 2,657 $ 2,826 $ 461 $ 2,005 $ 129 Troubled Debt Restructurings: At June 30, 2018 and December 31, 2017 , impaired loans included loans that were classified as Troubled Debt Restructurings ("TDRs"). The restructuring of a loan is considered a TDR if both (i) the borrower is experiencing financial difficulties and (ii) the creditor has granted a concession. In assessing whether or not a borrower is experiencing financial difficulties, the Company considers information currently available regarding the financial condition of the borrower. This information includes, but is not limited to, whether (i) the debtor is currently in payment default on any of its debt; (ii) a payment default is probable in the foreseeable future without the modification; (iii) the debtor has declared or is in the process of declaring bankruptcy; and (iv) the debtor's projected cash flow is sufficient to satisfy contractual payments due under the original terms of the loan without a modification. The Company considers all aspects of the modification to loan terms to determine whether or not a concession has been granted to the borrower. Key factors considered by the Company include the debtor's ability to access funds at a market rate for debt with similar risk characteristics, the significance of the modification relative to unpaid principal balance or collateral value of the debt, and the significance of a delay in the timing of payments relative to the original contractual terms of the loan. The most common concessions granted by the Company generally include one or more modifications to the terms of the debt, such as (i) a reduction in the interest rate for the remaining life of the debt; (ii) an extension of the maturity date at an interest rate lower than the current market rate for new debt with similar risk; (iii) a temporary period of interest-only payments; and (iv) a reduction in the contractual payment amount for either a short period or remaining term of the loan. As of June 30, 2018 and December 31, 2017 , management had approximately, $660 thousand and $41 thousand, respectively, in loans that met the criteria for restructured, none of which were on nonaccrual. A loan is placed back on accrual status when both principal and interest are current and it is probable that management will be able to collect all amounts due (both principal and interest) according to the terms of the loan agreement. There was one commercial real estate loan for approximately $622 thousand modified as troubled debt restructurings during the six month period ended June 30, 2018. There were no loans that were modified as troubled debt restructurings during the twelve month period ended December 31, 2017. There were no loans that were modified as troubled debt restructurings during the past three months and for which there was a subsequent payment default. Foreclosure Proceedings and Balances : As of June 30, 2018 the Company had $1.14 million in residential real estate included in foreclosed assets and there were no consumer mortgage loans collateralized by residential real estate property that were in the process of foreclosure. Purchased Credit Impaired Loans: The Company has acquired loans which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of those loans as of is as follows (in thousands): June 30, 2018 December 31, 2017 Commercial real estate $ 25,700 $ 23,366 Consumer real estate 9,620 10,764 Construction and land development 6,793 6,285 Commercial and industrial 2,973 1,452 Consumer and other 1,014 1,710 Total loans 46,100 43,577 Less remaining purchase discount (13,442 ) (10,783 ) Total loans, net of purchase discount 32,658 32,794 Less: Allowance for loan losses (19 ) (16 ) Carrying amount, net of allowance $ 32,639 $ 32,778 Activity related to the accretable yield on loans acquired with deteriorated credit quality is as follows for the three and six months period ended June 30, 2018 and 2017 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Accretable yield, beginning of period $ 7,780 $ 8,482 $ 9,287 $ 8,950 Additions 1,292 — 1,292 — Accretion income (1,928 ) (973 ) (3,029 ) (1,670 ) Reclassification to accretable 120 366 382 610 Other changes, net (58 ) 600 (726 ) 585 Accretable yield $ 7,206 $ 8,475 $ 7,206 $ 8,475 Purchased credit impaired loans acquired from Southern Community Bank during the three and six months period ended June 30, 2018 for which it was probable at acquisition that all contractually required payments would not be collected are as follows (in thousands): Three and Six Months Ended June 30, 2018 Contractual principal and interest at acquisition $ 15,133 Nonaccretable difference 5,302 Expected cash flows at acquisition 9,831 Accretable yield 1,292 Fair value of purchased credit impaired loans $ 8,539 | Note 4. Loans and Allowance for Loan Losses Portfolio Segmentation: At December 31, 2017 and 2016 , loans consisted of the following (in thousands): December 31, 2017 December 31, 2016 PCI All Other Total PCI All Other Total Commercial real estate $ 17,903 $ 625,085 $ 642,988 $ 14,943 $ 400,265 $ 415,208 Consumer real estate 7,450 286,007 293,457 9,004 178,798 187,802 Construction and land development 5,120 130,289 135,409 1,678 116,191 117,869 Commercial and industrial 858 237,229 238,087 1,568 83,454 85,022 Consumer and other 1,463 11,854 13,317 — 7,475 7,475 Total loans 32,794 1,290,464 1,323,258 27,193 786,183 813,376 Less: Allowance for loan losses (16 ) (5,844 ) (5,860 ) — (5,105 ) (5,105 ) Loans, net $ 32,778 $ 1,284,620 $ 1,317,398 $ 27,193 $ 781,078 $ 808,271 For purposes of the disclosures required pursuant to the adoption of ASC 310, the loan portfolio was disaggregated into segments. A portfolio segment is defined as the level at which an entity develops and documents a systematic method for determining its allowance for credit losses. There are five loan portfolio segments that include commercial real estate, consumer real estate, construction and land development, commercial and industrial, and consumer and other. The following describe risk characteristics relevant to each of the portfolio segments: Commercial Real Estate: Commercial real estate loans include owner-occupied commercial real estate loans and loans secured by income-producing properties. Owner-occupied commercial real estate loans to operating businesses are long-term financing of land and buildings. These loans are repaid by cash flow generated from the business operation. Real estate loans for income-producing properties such as apartment buildings, office and industrial buildings, and retail shopping centers are repaid from rent income derived from the properties. Loans within this portfolio segment are particularly sensitive to the valuation of real estate. Consumer Real Estate: Consumer real estate loans include real estate loans secured by first liens, second liens, or open end real estate loans, such as home equity lines. These are repaid by various means such as a borrower's income, sale of the property, or rental income derived from the property. One to four family first mortgage loans are repaid by various means such as a borrower's income, sale of the property, or rental income derived from the property. Loans within this portfolio segment are particularly sensitive to the valuation of real estate. Construction and Land Development: Loans for real estate construction and development are repaid through cash flow related to the operations, sale or refinance of the underlying property. This portfolio segment includes extensions of credit to real estate developers or investors where repayment is dependent on the sale of the real estate or income generated from the real estate collateral. Loans within this portfolio segment are particularly sensitive to the valuation of real estate. Commercial and Industrial: The commercial and industrial loan portfolio segment includes commercial, financial, and agricultural loans. These loans include those loans to commercial customers for use in normal business operations to finance working capital needs, equipment purchases, or expansion projects. Loans are repaid by business cash flows. Collection risk in this portfolio is driven by the creditworthiness of the underlying borrower, particularly cash flows from the customers' business operations. Consumer and Other: The consumer loan portfolio segment includes direct consumer installment loans, overdrafts and other revolving credit loans, and educational loans. Loans in this portfolio are sensitive to unemployment and other key consumer economic measures. Credit Risk Management: The Company employs a credit risk management process with defined policies, accountability and routine reporting to manage credit risk in the loan portfolio segments. Credit risk management is guided by credit policies that provide for a consistent and prudent approach to underwriting and approvals of credits. Within the Credit Policy, procedures exist that elevate the approval requirements as credits become larger and more complex. All loans are individually underwritten, risk-rated, approved, and monitored. Responsibility and accountability for adherence to underwriting policies and accurate risk ratings lies in each portfolio segment. For the consumer real estate and consumer and other portfolio segments, the risk management process focuses on managing customers who become delinquent in their payments. For the other portfolio segments, the risk management process focuses on underwriting new business and, on an ongoing basis, monitoring the credit of the portfolios, including a third party review of the largest credits on an annual basis or more frequently as needed. To ensure problem credits are identified on a timely basis, several specific portfolio reviews occur periodically to assess the larger adversely rated credits for proper risk rating and accrual status. Credit quality and trends in the loan portfolio segments are measured and monitored regularly. Detailed reports, by product, collateral, accrual status, etc., are reviewed by the Senior Credit Officer and the Directors Loan Committee. The allowance for loan losses is a valuation reserve allowance established through provisions for loan losses charged against income. The allowance for loan losses, which is evaluated quarterly, is maintained at a level that management deems sufficient to absorb probable losses inherent in the loan portfolio. Loans deemed to be uncollectible are charged against the allowance for loan losses, while recoveries of previously charged-off amounts are credited to the allowance for loan losses. The allowance for loan losses is comprised of specific valuation allowances for loans evaluated individually for impairment and general allocations for pools of homogeneous loans with similar risk characteristics and trends. The allowance for loan losses related to specific loans is based on management's estimate of potential losses on impaired loans as determined by (1) the present value of expected future cash flows; (2) the fair value of collateral if the loan is determined to be collateral dependent or (3) the loan's observable market price. The Company's homogeneous loan pools include commercial real estate loans, consumer real estate loans, construction and land development loans, commercial and industrial loans, and consumer and other loans. The general allocations to these loan pools are based on the historical loss rates for specific loan types and the internal risk grade, if applicable, adjusted for both internal and external qualitative risk factors. The qualitative factors considered by management include, among other factors, (1) changes in local and national economic conditions; (2) changes in asset quality; (3) changes in loan portfolio volume; (4) the composition and concentrations of credit; (5) the impact of competition on loan structuring and pricing; (6) the impact of interest rate changes on portfolio risk and (7) effectiveness of the Company's loan policies, procedures and internal controls. The total allowance established for each homogeneous loan pool represents the product of the historical loss ratio adjusted for qualitative factors and the total dollar amount of the loans in the pool. The composition of loans by loan classification for impaired and performing loan status at December 31, 2017 and 2016 , is summarized in the tables below (amounts in thousands): December 31, 2017 Commercial Consumer Construction Commercial Consumer Total Performing loans $ 624,638 $ 284,585 $ 129,742 $ 237,016 $ 11,842 $ 1,287,823 Impaired loans 447 1,422 547 213 12 2,641 625,085 286,007 130,289 237,229 11,854 1,290,464 PCI loans 17,903 7,450 5,120 858 1,463 32,794 Total $ 642,988 $ 293,457 $ 135,409 $ 238,087 $ 13,317 $ 1,323,258 December 31, 2016 Commercial Consumer Construction Commercial Consumer Total Performing loans $ 400,146 $ 177,977 $ 115,326 $ 83,244 $ 7,475 $ 784,168 Impaired loans 119 821 865 210 — 2,015 400,265 178,798 116,191 83,454 7,475 786,183 PCI loans 14,943 9,004 1,678 1,568 — 27,193 Total loans $ 415,208 $ 187,802 $ 117,869 $ 85,022 $ 7,475 $ 813,376 The following tables show the allowance for loan losses allocation by loan classification for impaired and performing loans as of December 31, 2017 and 2016 (amounts in thousands): December 31, 2017 Construction Commercial Consumer Commercial Consumer and Land and and Real Estate Real Estate Development Industrial Other Total Performing loans $ 2,444 $ 1,340 $ 521 $ 890 $ 204 $ 5,399 PCI loans 16 — — — — 16 Impaired loans 5 256 — 172 12 445 Total $ 2,465 $ 1,596 $ 521 $ 1,062 $ 216 $ 5,860 December 31, 2016 Construction Commercial Consumer Commercial Consumer and Land and and Real Estate Real Estate Development Industrial Other Total Performing loans $ 2,369 $ 1,382 $ 717 $ 516 $ 117 $ 5,101 PCI Loans — — — — — — Impaired loans — — — 4 — 4 Total $ 2,369 $ 1,382 $ 717 $ 520 $ 117 $ 5,105 The following tables detail the changes in the allowance for loan losses for the year ending December 31, 2017 and December 31, 2016 , by loan classification (amounts in thousands): December 31, 2017 Commercial Consumer Construction Commercial Consumer Total Beginning balance $ 2,369 $ 1,382 $ 717 $ 520 $ 117 $ 5,105 Loans charged off — (111 ) — (24 ) (141 ) (276 ) Recoveries of loans charged off 8 99 13 67 61 248 Provision (reallocation) charged to operating expense 88 226 (209 ) 499 179 783 Ending balance $ 2,465 $ 1,596 $ 521 $ 1,062 $ 216 $ 5,860 December 31, 2016 Commercial Consumer Construction Commercial Consumer Total Beginning balance $ 1,906 $ 1,015 $ 627 $ 777 $ 29 $ 4,354 Loans charged off — (102 ) (14 ) (35 ) (155 ) (306 ) Recoveries of loans charged off 45 76 22 58 68 269 Provision (reallocation) charged to operating expense 418 393 82 (280 ) 175 788 Ending balance $ 2,369 $ 1,382 $ 717 $ 520 $ 117 $ 5,105 A description of the general characteristics of the risk grades used by the Company is as follows: Pass: Loans in this risk category involve borrowers of acceptable-to-strong credit quality and risk who have the apparent ability to satisfy their loan obligations. Loans in this risk grade would possess sufficient mitigating factors, such as adequate collateral or strong guarantors possessing the capacity to repay the debt if required, for any weakness that may exist. Watch: Loans in this risk category involve borrowers that exhibit characteristics, or are operating under conditions that, if not successfully mitigated as planned, have a reasonable risk of resulting in a downgrade within the next six to twelve months. Loans may remain in this risk category for six months and then are either upgraded or downgraded upon subsequent evaluation. Special Mention: Loans in this risk grade are the equivalent of the regulatory definition of "Other Assets Especially Mentioned" classification. Loans in this category possess some credit deficiency or potential weakness, which requires a high level of management attention. Potential weaknesses include declining trends in operating earnings and cash flows and /or reliance on the secondary source of repayment. If left uncorrected, these potential weaknesses may result in noticeable deterioration of the repayment prospects for the asset or in the Company's credit position. Substandard: Loans in this risk grade are inadequately protected by the borrower's current financial condition and payment capability or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the orderly repayment of debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful: Loans in this risk grade have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or orderly repayment in full, on the basis of current existing facts, conditions and values, highly questionable and improbable. Possibility of loss is extremely high, but because of certain important and reasonably specific factors that may work to the advantage and strengthening of the exposure, its classification as an estimated loss is deferred until its more exact status may be determined. Uncollectible: Loans in this risk grade are considered to be non-collectible and of such little value that their continuance as bankable assets is not warranted. This does not mean the loan has absolutely no recovery value, but rather it is neither practical nor desirable to defer writing off the loan, even though partial recovery may be obtained in the future. Charge-offs against the allowance for loan losses are taken in the period in which the loan becomes uncollectible. Consequently, the Company typically does not maintain a recorded investment in loans within this category. The following tables outline the amount of each loan classification and the amount categorized into each risk rating as of December 31, 2017 and 2016 (amounts in thousands): Non PCI Loans December 31, 2017 Commercial Consumer Construction Commercial Consumer Total Pass $ 616,028 $ 279,464 $ 129,359 $ 233,942 $ 11,624 $ 1,270,417 Watch 7,673 2,543 383 3,007 62 13,668 Special mention 1,006 2,627 — 64 155 3,852 Substandard 378 1,159 547 157 — 2,241 Doubtful — 214 — 59 13 286 Total $ 625,085 $ 286,007 $ 130,289 $ 237,229 $ 11,854 $ 1,290,464 PCI Loans December 31, 2017 Commercial Consumer Construction Commercial Consumer Total Pass $ 14,386 $ 4,151 $ 4,134 $ 68 $ 819 $ 23,558 Watch 261 1,345 649 120 262 2,637 Special mention — 456 — 58 24 538 Substandard 3,084 1,192 337 588 107 5,308 Doubtful 172 306 — 24 251 753 Total $ 17,903 $ 7,450 $ 5,120 $ 858 $ 1,463 $ 32,794 Total loans $ 642,988 $ 293,457 $ 135,409 $ 238,087 $ 13,317 $ 1,323,258 Non PCI Loans December 31, 2016 Commercial Consumer Construction Commercial Consumer Total Pass $ 399,505 $ 177,466 $ 115,237 $ 82,992 $ 7,238 $ 782,438 Watch 640 550 89 252 — 1,531 Special mention — 104 — — 237 341 Substandard 120 678 865 210 — 1,873 Doubtful — — — — — — Total $ 400,265 $ 178,798 $ 116,191 $ 83,454 $ 7,475 $ 786,183 PCI Loans December 31, 2016 Commercial Consumer Construction Commercial Consumer Total Pass $ 11,836 $ 6,811 $ 1,019 $ 1,507 $ — $ 21,173 Watch 1,045 1,577 645 22 — 3,289 Special mention — — — 12 — 12 Substandard 2,062 616 14 — — 2,692 Doubtful — — — 27 — 27 Total $ 14,943 $ 9,004 $ 1,678 $ 1,568 $ — $ 27,193 Total loans $ 415,208 $ 187,802 $ 117,869 $ 85,022 $ 7,475 $ 813,376 Past Due Loans: A loan is considered past due if any required principal and interest payments have not been received as of the date such payments were required to be made under the terms of the loan agreement. Generally, management places a loan on nonaccrual when there is a clear indication that the borrower’s cash flow may not be sufficient to meet payments as they become due, which is generally when a loan is 90 days past due. The following tables present the aging of the recorded investment in loans and leases as of December 31, 2017 and 2016 (amounts in thousands): December 31, 2017 30-89 Days Past Due 90 Nonaccrual Total PCI Loans Current Total Commercial real estate $ 517 $ 728 $ 128 $ 1,373 $ 17,903 $ 623,712 $ 642,988 Consumer real estate 963 33 991 1,987 7,450 284,020 293,457 Construction and land development 65 326 547 938 5,120 129,351 135,409 Commercial and industrial 286 131 85 502 858 236,727 238,087 Consumer and other 165 291 13 469 1,463 11,385 13,317 Total $ 1,996 $ 1,509 $ 1,764 $ 5,269 $ 32,794 $ 1,285,195 $ 1,323,258 December 31, 2016 30-89 Days Past Due 90 Nonaccrual Total PCI Current Total Commercial real estate $ 395 $ — $ — $ 395 $ 14,943 $ 399,870 $ 415,208 Consumer real estate 695 699 386 1,780 9,004 177,018 187,802 Construction and land development 690 — 865 1,555 1,678 114,636 117,869 Commercial and industrial 257 — 164 421 1,568 83,033 85,022 Consumer and other 17 — — 17 — 7,458 7,475 Total $ 2,054 $ 699 $ 1,415 $ 4,168 $ 27,193 $ 782,015 $ 813,376 Impaired Loans: A loan held for investment is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due (both principal and interest) according to the terms of the loan agreement. The following is an analysis of the impaired loan portfolio detailing the related allowance recorded as of and for the years ended December 31, 2017 and 2016 (amounts in thousands): For the year ended At December 31, 2017 December 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Impaired loans without a valuation allowance: Non PCI Loans: Commercial real estate $ 424 $ 454 $ — $ 204 $ 44 Consumer real estate 415 420 — 401 16 Construction and land development 547 547 — 628 — Commercial and industrial 41 41 — 44 3 Consumer and other — — — — — 1,427 1,462 — 1,277 63 PCI loans: None in 2017 Impaired loans with a valuation allowance: Non PCI Loans: Commercial real estate 23 23 5 5 1 Consumer real estate 1,007 1,033 256 601 38 Construction and land development — — — — — Commercial and industrial 172 172 172 117 10 Consumer and other 12 13 12 2 1 1,214 1,241 445 725 50 PCI loans: Commercial real estate 16 123 16 3 16 Total impaired loans $ 2,657 $ 2,826 $ 461 $ 2,005 $ 129 For the year ended At December 31, 2016 December 31, 2016 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Impaired loans without a valuation allowance: Non PCI Loans: Commercial real estate $ 119 $ 119 $ — $ 1,311 $ 73 Consumer real estate 821 849 — 2,334 100 Construction and land development 865 865 — 967 3 Commercial and industrial 46 46 — 47 4 Consumer and other — — — — — 1,851 1,879 — 4,659 180 PCI loans: None in 2016 Impaired loans with a valuation allowance: Non PCI Loans: Commercial real estate — — — — — Consumer real estate — — — — — Construction and land development — — — — — Commercial and industrial 164 243 4 306 70 Consumer and other — — — — — 164 243 4 306 70 PCI loans: None in 2016 Total impaired loans $ 2,015 $ 2,122 $ 4 $ 4,965 $ 250 Troubled Debt Restructurings: At December 31, 2017 and 2016 , impaired loans included loans that were classified as Troubled Debt Restructurings ("TDRs"). The restructuring of a loan is considered a TDR if both (i) the borrower is experiencing financial difficulties and (ii) the creditor has granted a concession. In assessing whether or not a borrower is experiencing financial difficulties, the Company considers information currently available regarding the financial condition of the borrower. This information includes, but is not limited to, whether (i) the debtor is currently in payment default on any of its debt; (ii) a payment default is probable in the foreseeable future without the modification; (iii) the debtor has declared or is in the process of declaring bankruptcy; and (iv) the debtor's projected cash flow is sufficient to satisfy contractual payments due under the original terms of the loan without a modification. The Company considers all aspects of the modification to loan terms to determine whether or not a concession has been granted to the borrower. Key factors considered by the Company include the debtor's ability to access funds at a market rate for debt with similar risk characteristics, the significance of the modification relative to unpaid principal balance or collateral value of the debt, and the significance of a delay in the timing of payments relative to the original contractual terms of the loan. The most common concessions granted by the Company generally include one or more modifications to the terms of the debt, such as (i) a reduction in the interest rate for the remaining life of the debt; (ii) an extension of the maturity date at an interest rate lower than the current market rate for new debt with similar risk; (iii) a temporary period of interest-only payments; and (iv) a reduction in the contractual payment amount for either a short period or remaining term of the loan. As of December 31, 2017 and 2016 , management had approximately $41,000 and $608,000 , respectively, in loans that met the criteria for restructured. No restructured loans were on nonaccrual as of December 31, 2017. There were $442,000 restructured loans on nonaccrual at December 31, 2016. A loan is placed back on accrual status when both principal and interest are current and it is probable that management will be able to collect all amounts due (both principal and interest) according to the terms of the loan agreement. There were no loans modified as troubled debt restructurings during the year ended December 31, 2017. The following table presents a summary of loans that were modified as troubled debt restructurings during the year ended December 31, 2016 (amounts in thousands): December 31, 2016 Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Construction and land development 1 $ 278 $ 278 Commercial and industrial 1 164 164 There were no loans that were modified as troubled debt restructurings during the past twelve months and for which there was a subsequent payment default. Purchased Credit Impaired Loans: The Company has acquired loans which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of those loans at for the years ended December 31, 2017 and 2016 is as follows (in thousands): 2017 2016 Commercial real estate $ 23,366 $ 18,473 Consumer real estate 10,764 12,111 Construction and land development 6,285 2,553 Commercial and industrial 1,452 2,482 Consumer and other 1,710 — Total loans $ 43,577 $ 35,619 Less remaining purchase discount (10,783 ) (8,426 ) Total, gross 32,794 27,193 Less: Allowance for loan losses (16 ) — Carrying amount, net of allowance $ 32,778 $ 27,193 The following is a summary of the accretable discount on acquired loans for the years ended December 31, 2017 and 2016 (in thousands): 2017 2016 Accretable yield, beginning of period $ 8,950 $ 10,217 Additions 2,581 — Accretion income (4,217 ) (2,588 ) Reclassification from nonaccretable 926 1,585 Other changes, net 1,047 (264 ) Accretable yield, end of period $ 9,287 $ 8,950 The Company increased the allowance for loan losses on purchase credit impaired loans in the amount of approximately $16,000 during the year ended December 31, 2017 and no increases were made during the year ended December 31, 2016 . Purchased credit impaired loans acquired from Capstone during the year ended December 31, 2017 for which it was probable at acquisition that all contractually required payments would not be collected are as follows (in thousands): 2017 Contractual principal and interest at acquisition $ 25,288 Nonaccretable difference 5,725 Expected cash flows at acquisition 19,563 Accretable yield 2,581 Basis in PCI loans at acquisition-estimated fair value $ 16,982 Related Party Loans: In the ordinary course of business, the Company has granted loans to certain related parties, including directors, executive officers, and their affiliates. The interest rates on these loans were substantially the same as rates prevailing at the time of the transaction and repayment terms are customary for the type of loan. A summary of activity in loans to related parties is as follows (in thousands): 2017 2016 Balance, beginning of year $ 12,999 $ 10,851 Disbursements 14,533 855 Removal of credit lines — (1,153 ) Changes in ownership — 4,830 Repayments (9,202 ) (2,384 ) Balance, end of year $ 18,330 $ 12,999 At December 31, 2017 , the Company had pre-approved but unused lines of credit totaling approximately $5,833,000 to related parties. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities (Q2) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments and Contingencies | Note 6. Commitments and Contingent Liabilities Off Balance Sheet Arrangements: In the normal course of business, the Bank has entered into off-balance sheet financial instruments which include commitments to extend credit (i.e., including unfunded lines of credit) and standby letters of credit. Commitments to extend credit are usually the result of lines of credit granted to existing borrowers under agreements that the total outstanding indebtedness will not exceed a specific amount during the term of the indebtedness. Typical borrowers are commercial concerns that use lines of credit to supplement their treasury management functions; thus their total outstanding indebtedness may fluctuate during any time period based on the seasonality of their business and the resultant timing of their cash flows. Other typical lines of credit are related to home equity loans granted to consumers. Commitments to extend credit generally have fixed expiration dates or other termination clauses and may require payment of a fee. Standby letters of credit are generally issued on behalf of an applicant (our client) to a specifically named beneficiary and are the result of a particular business arrangement that exists between the applicant and the beneficiary. Standby letters of credit have fixed expiration dates and are usually for terms of two years or less unless terminated beforehand due to criteria specified in the standby letter of credit. A typical arrangement involves the applicant routinely being indebted to the beneficiary for such items as inventory purchases, insurance, utilities, lease guarantees or other third party commercial transactions. The standby letter of credit would permit the beneficiary to obtain payment from the Bank under certain prescribed circumstances. Subsequently, the Bank would seek reimbursement from the applicant pursuant to the terms of the standby letter of credit. The Bank follows the same credit policies and underwriting practices when making these commitments as it does for on-balance sheet instruments. Each client’s creditworthiness is evaluated on a case-by-case basis, and the amount of collateral obtained, if any, is based on management’s credit evaluation of the customer. Collateral held varies but may include cash, real estate and improvements, marketable securities, accounts receivable, inventory, equipment and personal property. The contractual amounts of these commitments are not reflected in the consolidated financial statements and would only be reflected if drawn upon. Since many of the commitments are expected to expire without being drawn upon, the contractual amounts do not necessarily represent future cash requirements. However, should the commitments be drawn upon and should customers default on their resulting obligation to the Bank the maximum exposure to credit loss, without consideration of collateral, is represented by the contractual amount of those instruments. A summary of the Bank’s total contractual amount for all off-balance sheet commitments at June 30, 2018 is as follows: Commitments to extend credit $ 299.6 million Standby letters of credit $ 3.7 million Various legal claims also arise from time to time in the normal course of business. In the opinion of management, the resolution of claims outstanding at June 30, 2018 will not have a material effect on the Company's consolidated financial statements. | Note 12. Commitments and Contingencies Loan Commitments: The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing and depository needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Such commitments involve, to varying degrees, elements of credit risk and interest rate risk in excess of the amount recognized in the balance sheets. The majority of all commitments to extend credit are variable rate instruments while the standby letters of credit are primarily fixed rate instruments. The Company's exposure to credit loss is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments as it does for on-balance sheet instruments. A summary of the Company's total contractual amount for all off-balance sheet commitments at December 31, 2017 is as follows: Commitments to extend credit 292.8 million Standby letters of credit, issued by the Company 5.5 million Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management's credit evaluation of the customer. Collateral held varies, but may include accounts receivable, inventory, property and equipment, residential real estate, and income-producing commercial properties. Standby letters of credit issued by the Company are conditional commitments to guarantee the performance of a customer to a third party. Those letters of credit are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. Collateral held varies and is required in instances which the Company deems necessary. At December 31, 2017 and 2016 , the carrying amount of liabilities related to the Company's obligation to perform under standby letters of credit was insignificant. The Company has not been required to perform on any standby letters of credit, and the Company has not incurred any losses on standby letters of credit for the years ended December 31, 2017 and 2016 . Contingencies: In the normal course of business, the Company may become involved in various legal proceedings. In the opinion of management, any liability resulting from such proceedings would not have a material effect on the Company's financial statements. |
Fair Value Disclosures (Q2)
Fair Value Disclosures (Q2) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | ||
Fair Value of Assets and Liabilities | Note 7. Fair Value Disclosures Determination of Fair Value: The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In accordance with the “Fair Value Measurements and Disclosures” ASC Topic 820, the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. ASC Topic 820 provides a consistent definition of fair value, which focuses on exit price in an orderly transaction between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. Fair Value Hierarchy: In accordance with this guidance, the Company groups its financial assets and financial liabilities generally measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Level 1 - Valuation is based on quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 assets and liabilities generally include debt and equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2 - Valuation is based on inputs other than quoted prices included within Level I that are observable for the asset or liability, either directly or indirectly. The valuation may be based on quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. Level 3 - Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which determination of fair value requires significant management judgment or estimation. A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following methods and assumptions were used by the Company in estimating fair value disclosures for financial instruments: Cash and Cash Equivalents: For cash and due from banks, interest-bearing deposits, and federal funds sold, the carrying amount is a reasonable estimate of fair value based on the short-term nature of the assets and are considered Level 1 inputs. Securities Available-for-Sale: Where quoted prices are available in an active market, management classifies the securities within Level 1 of the valuation hierarchy. If quoted market prices are not available, management estimates fair values using pricing models that use observable inputs or quoted prices at securities with similar characteristics. Examples of such instruments, which would generally be classified within Level 2 of the valuation hierarchy, including GSE obligations, corporate bonds, and other securities. Mortgage-backed securities are included in Level 2 if observable inputs are available. In certain cases where there is limited activity or less transparency around inputs to the valuation, management classifies those securities in Level 3. Restricted Investments: It is not practicable to determine the fair value of restricted investments due the restrictions placed on its transferability. Loans: With the adoption of ASU 2016-01 on January 1, 2018, we refined our methodology to estimate the fair value of our loan portfolio to use the exit price notion as required by the ASU. The guidance was applied on a prospective approach resulting in prior-periods no longer being comparable. See “Note 1 – Presentation of Financial Information” for further information. For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. Fair value for fixed rate loans are estimated using discounted cash flow analyses, using market interest rates for comparable loans. Fair values for nonperforming loans are estimated using discounted cash flow analyses or underlying collateral values, where applicable. These methods are considered Level 3 inputs. Deposits: The fair values disclosed for demand deposits (for example, interest and noninterest checking, savings, and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (that is, their carrying amounts) and are considered Level 2 inputs. Fair values for fixed-rate time deposits are estimated using a discounted cash flow calculation that applies market interest rates on comparable instruments to a schedule of aggregated expected monthly maturities on time deposits, and are considered Level 2 inputs. Securities Sold Under Agreement to Repurchase: The carrying value of these liabilities approximates their fair value, and are considered Level 1 inputs. Federal Home Loan Bank ("FHLB") Advances and Other Borrowings: The fair value of the FHLB fixed rate borrowings are estimated using discounted cash flows, based on the current incremental borrowing rates for similar types of borrowing arrangements, and are considered Level 2 inputs. The carrying value of FHLB floating rate borrowings and floating rate other borrowings approximates their fair value and are considered Level 1 inputs. Commitments to Extend Credit and Standby Letters of Credit: Because commitments to extend credit and standby letters of credit are made using variable rates and have short maturities, the carrying value and the fair value are immaterial for disclosure. Measurements of Fair Value: Assets and liabilities recorded at fair value on a recurring basis are as follows (in thousands): Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Debt securities available-for-sale: U.S. Government-sponsored enterprises (GSEs) $ 28,128 $ — $ 28,128 $ — Mortgage-backed securities 111,954 — 111,954 — Other debt securities 911 — 911 — Municipal securities 15,584 — 15,584 — Total securities available-for-sale $ 156,577 $ — $ 156,577 $ — Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Debt securities available-for-sale: U.S. Government-sponsored enterprises (GSEs) $ 25,776 $ — $ 25,776 $ — Mortgage-backed securities 116,215 — 116,215 — Other debt securities 950 — 950 — Municipal securities 9,003 — 9,003 — Total securities available-for-sale $ 151,944 $ — $ 151,944 $ — The Company has no assets or liabilities whose fair values are measured on a recurring basis using Level 3 inputs. Additionally, there were no transfers between Level 1 and Level 2 in the fair value hierarchy. Assets Measured at Fair Value on a Nonrecurring Basis: Under certain circumstances management makes adjustments to fair value for assets and liabilities although they are not measured at fair value on an ongoing basis. The following tables present the financial instruments carried on the consolidated balance sheets by caption and by level in the fair value hierarchy, for which a nonrecurring change in fair value has been recorded (in thousands): Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Impaired loans $ 407 $ — $ — $ 407 Foreclosed assets 3,524 — — 3,524 Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Impaired loans $ 769 $ — $ — $ 769 Foreclosed assets 3,254 — — 3,254 For Level 3 assets measured at fair value on a non-recurring basis as of March 31, 2018 and December 31, 2017, the significant unobservable inputs used in the fair value measurements are presented below (in thousands). Balance as of Valuation Significant Other Weighted Impaired loans $ 407 Appraisal and Cashflow Appraisal and Cashflow Discounts 47 % Foreclosed assets 3,524 Appraisal Appraisal Discounts 19 % Balance as of Valuation Significant Other Weighted Impaired loans $ 769 Appraisal Appraisal Discounts 36 % Foreclosed assets 3,254 Appraisal Appraisal Discounts 18 % Impaired Loans: Loans considered impaired under ASC 310-10-35, Receivables , are loans for which, based on current information and events, it is probable that the Company will be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan agreement. Impaired loans can be measured based on the present value of expected payments using the loan’s original effective rate as the discount rate, the loan’s observable market price, or the fair value of the collateral less selling costs if the loan is collateral dependent. The fair value of impaired loans were measured based on the value of the collateral securing these loans or the discounted cash flows of the loans, as applicable. Impaired loans are classified within Level 3 of the fair value hierarchy. Collateral may be real estate and/or business assets including equipment, inventory, and/or accounts receivable. The Company determines the value of the collateral based on independent appraisals performed by qualified licensed appraisers. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Appraised values are discounted for costs to sell and may be discounted further based on management’s historical knowledge, changes in market conditions from the date of the most recent appraisal, and/or management’s expertise and knowledge of the customer and the customer’s business. Such discounts by management are subjective and are typically significant Foreclosed assets: Foreclosed assets, consisting of properties obtained through foreclosure or in satisfaction of loans, are initially recorded at fair value less estimated costs to sell upon transfer of the loans to other real estate. Subsequently, other real estate is carried at the lower of carrying value or fair value less costs to sell. Fair values are generally based on third party appraisals of the property and are classified within Level 3 of the fair value hierarchy. The appraisals are sometimes further discounted based on management’s historical knowledge, and/or changes in market conditions from the date of the most recent appraisal, and/or management’s expertise and knowledge of the customer and the customer’s business. Such discounts are typically significant unobservable inputs for determining fair value. In cases where the carrying amount exceeds the fair value, less estimated costs to sell, a loss is recognized in noninterest expense. Carrying value and estimated fair value: The carrying amount and estimated fair value of the Company’s financial instruments at June 30, 2018 and December 31, 2017 are as follows (in thousands): June 30, 2018 Fair Value Measurements Using Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value Assets: Cash and cash equivalents $ 170,235 170,235 — — $ 170,235 Securities available-for-sale 156,577 — 156,577 — 156,577 Restricted investments 8,273 N/A N/A N/A N/A Loans, net 1,568,361 — — 1,569,916 1,569,916 Liabilities: Noninterest-bearing demand deposits 301,318 — 301,318 — 301,318 Interest-bearing demand deposits 246,942 — 246,942 — 246,942 Money Market and Savings deposits 632,518 — 632,518 — 632,518 Time deposits 535,879 — 537,006 — 537,006 Securities sold under agreements to repurchase 18,635 — 18,635 — 18,635 Federal Home Loan Bank advances and other borrowings 72,040 — 72,040 — 72,040 December 31, 2017 Fair Value Measurements Using Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value Assets: Cash and cash equivalents $ 113,027 113,027 — — $ 113,027 Securities available-for-sale 151,944 — 151,944 — 151,944 Restricted investments 6,431 N/A N/A N/A N/A Loans, net 1,317,398 — — 1,292,303 1,292,303 Liabilities: Noninterest-bearing demand deposits 220,520 — 220,520 — 250,520 Interest-bearing demand deposits 231,644 — 231,644 — 231,644 Money Market and Savings deposits 543,645 — 543,645 — 543,645 Time deposits 442,774 — 443,547 — 443,547 Securities sold under agreements to repurchase 24,055 — 24,055 — 24,055 Federal Home Loan Bank advances and other borrowings 43,600 — 43,600 — 43,600 Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on many judgments. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial instruments include deferred income taxes and premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. | Note 15. Fair Value of Assets and Liabilities Determination of Fair Value: The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In accordance with Fair Value Measurements and Disclosures topic (FASB ASC 820), the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company's various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. Fair Value Hierarchy: In accordance with this guidance, the Company groups its financial assets and financial liabilities generally measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Level 1 - Valuation is based on quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 assets and liabilities generally include debt and equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2 - Valuation is based on inputs other than quoted prices included within Level I that are observable for the asset or liability, either directly or indirectly. The valuation may be based on quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. Level 3 - Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which determination of fair value requires significant management judgment or estimation. A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following methods and assumptions were used by the Company in estimating fair value disclosures for financial instruments: Cash and Cash Equivalents: For cash and due from banks, interest-bearing deposits, and federal funds sold, the carrying amount is a reasonable estimate of fair value based on the short-term nature of the assets and are considered Level 1 inputs. Securities Available for Sale: Where quoted prices are available in an active market, management classifies the securities within Level 1 of the valuation hierarchy. If quoted market prices are not available, management estimates fair values using pricing models and discounted cash flows that consider standard input factors such as observable market data, benchmark yields, interest rate volatilities, broker/dealer quotes, and credit spreads. Examples of such instruments, which would generally be classified within Level 2 of the valuation hierarchy, including GSE obligations, corporate bonds, and other securities. Mortgage-backed securities are included in Level 2 if observable inputs are available. In certain cases where there is limited activity or less transparency around inputs to the valuation, management classifies those securities in Level 3. Restricted Investments: It is not practicable to determine the fair value of restricted investments due the restrictions placed on its transferability. Loans: For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. Fair value for fixed rate loans are estimated using discounted cash flow analyses, using market interest rates for comparable loans. Fair values for nonperforming loans are estimated using discounted cash flow analyses or underlying collateral values, where applicable. These methods are considered Level 3 inputs. Deposits: The fair values disclosed for demand deposits (for example, interest and noninterest checking, savings, and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (that is, their carrying amounts) and are considered Level 1 inputs. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies market interest rates on comparable instruments to a schedule of aggregated expected monthly maturities on time deposits, and are considered Level 2 inputs. Securities Sold Under Agreement to Repurchase: The carrying value of these liabilities approximates their fair value, and are considered Level 1 inputs. Federal Home Loan Bank Advances and Other Borrowings: The fair value of the FHLB fixed rate borrowings are estimated using discounted cash flows, based on the current incremental borrowing rates for similar types of borrowing arrangements, and are considered Level 2 inputs. Commitments to Extend Credit and Standby Letters of Credit: Because commitments to extend credit and standby letters of credit are made using variable rates and have short maturities, the carrying value and the fair value are immaterial for disclosure. Assets Measured at Fair Value on a Recurring Basis: Assets recorded at fair value on a recurring basis are as follows, in thousands Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Securities available-for-sale: U.S. Government-sponsored enterprises (GSEs) $ 25,776 $ — $ 25,776 $ — Municipal securities 9,003 — 9,003 — Other debt securities 950 — 950 — Mortgage-backed securities 116,215 — 116,215 — Total securities available-for-sale $ 151,944 $ — $ 151,944 $ — Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Securities available-for-sale: U.S. Government-sponsored enterprises (GSEs) $ 17,723 $ — $ 17,723 $ — Municipal securities 8,019 — 8,019 — Mortgage-backed securities 103,680 — 103,680 — Total securities available-for-sale $ 129,422 $ — $ 129,422 $ — The Company has no assets or liabilities whose fair values are measured on a recurring basis using Level 3 inputs. Additionally, there were no transfers between Level 1 and Level 2 in the fair value hierarchy. Assets Measured at Fair Value on a Nonrecurring Basis: Under certain circumstances management makes adjustments to fair value for assets and liabilities although they are not measured at fair value on an ongoing basis. The following tables present the financial instruments carried on the consolidated balance sheets by caption and by level in the fair value hierarchy, for which a nonrecurring change in fair value has been recorded (in thousands): Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Impaired loans $ 769 $ — $ — $ 769 Foreclosed assets 3,254 — — 3,254 Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Impaired loans $ 239 $ — $ — $ 239 Foreclosed assets 2,386 — — 2,386 For Level 3 assets measured at fair value on a non-recurring basis as of December 31, 2017 and 2016 , the significant unobservable inputs used in the fair value measurements are presented below. Balance as of Valuation Technique Significant Other Unobservable Input Weighted Average of Input Impaired loans $ 769 Third Party Appraisal Appraisal Discounts 35.5 % Foreclosed assets 3,254 Third Party Appraisal Appraisal Discounts 17.8 % Balance as of Valuation Technique Significant Other Unobservable Input Weighted Average of Input Impaired loans $ 239 Cash Flow Discounted Cash Flow / Appraisal Discounts 2.4 % Foreclosed assets 2,386 Appraisal Appraisal Discounts 12.2 % Impaired Loans: Loans considered impaired under ASC 310-10-35, Receivables , are loans for which, based on current information and events, it is probable that the Company will be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan agreement. Impaired loans can be measured based on the present value of expected payments using the loan’s original effective rate as the discount rate, the loan’s observable market price, or the fair value of the collateral less selling costs if the loan is collateral dependent. The fair value of impaired loans were measured based on the value of the collateral securing these loans or the discounted cash flows of the loans, as applicable. Impaired loans are classified within Level 3 of the fair value hierarchy. Collateral may be real estate and/or business assets including equipment, inventory, and/or accounts receivable. The Company determines the value of the collateral based on independent appraisals performed by qualified licensed appraisers. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Appraised values are discounted for costs to sell and may be discounted further based on management’s historical knowledge, changes in market conditions from the date of the most recent appraisal, and/or management’s expertise and knowledge of the customer and the customer’s business. Such discounts by management are subjective and are typically significant unobservable inputs for determining fair value. Impaired loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly, based on the same factors discussed above. Foreclosed assets: Foreclosed assets, consisting of properties obtained through foreclosure or in satisfaction of loans, are initially recorded at fair value less estimated costs to sell upon transfer of the loans to other real estate. Subsequently, other real estate is carried at the lower of carrying value or fair value less costs to sell. Fair values are generally based on third party appraisals of the property and are classified within Level 3 of the fair value hierarchy. The appraisals are sometimes further discounted based on management’s historical knowledge, and/or changes in market conditions from the date of the most recent appraisal, and/or management’s expertise and knowledge of the customer and the customer’s business. Such discounts are typically significant unobservable inputs for determining fair value. In cases where the carrying amount exceeds the fair value, less estimated costs to sell, a loss is recognized in noninterest expense. Carrying value and estimated fair value: The carrying amount and estimated fair value of the Company’s financial instruments at December 31, 2017 and December 31, 2016 are as follows (in thousands): December 31, 2017 December 31, 2016 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets: Cash and cash equivalents $ 113,027 $ 113,027 $ 68,748 $ 68,748 Securities available for sale 151,944 151,944 129,422 129,422 Restricted investments 6,431 N/A 5,628 N/A Loans, net 1,317,398 1,292,303 808,271 803,057 Liabilities: Noninterest-bearing demand deposits 220,520 220,520 153,483 153,483 Interest-bearing demand deposits 231,644 231,644 162,702 162,702 Savings deposits 543,645 543,645 274,605 274,605 Time deposits 442,774 443,547 316,275 316,734 Securities sold under agreements to repurchase 24,055 24,055 26,622 26,622 Federal Home Loan Bank advances and other borrowings 43,600 43,600 18,505 18,505 Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on many judgments. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial instruments include deferred income taxes and premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. |
Small Business Lending Fund (Q2
Small Business Lending Fund (Q2) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Small Business Lending Fund [Abstract] | ||
Small Business Lending Fund | Note 8. Small Business Lending Fund In connection with the Company's merger with Legacy SmartFinancial, Inc. in 2015, the company assumed Legacy SmartFinancial's obligations under that certain stock purchase agreement with the U.S. Department of the Treasury and issued 12,000 shares of preferred stock at $1,000 per share under the Small Business Lending Fund Program (the " SBLF Program ").The Company paid cash dividends at a one percent rate or $120,000 for the year ended December 31, 2015 on the preferred shares. On February 4, 2016 the dividend rate for the preferred shares increased to nine percent and as a result the company incurred preferred stock dividends of $1,022,000 for the year ended December 31, 2016 . On January 30, 2017, the Company completed a public offering of 2,010,084 shares of its common stock with the net proceeds to the Company of approximately $33.2 million . On March 6, 2017 the Company used proceeds from the offering to redeem the $12 million of preferred stock and pay the $195 thousand accrued dividend. | Note 16. Small Business Lending Fund In connection with the Company's merger with Legacy SmartFinancial, Inc. in 2015, the Company assumed Legacy SmartFinancial's obligations under a stock purchase agreement with the U.S. Department of the Treasury and issued 12,000 shares of preferred stock at $1,000 per share under the Small Business Lending Fund Program (the "SBLF Program").The Company paid cash dividends at a one percent rate or $120,000 for the year ended December 31, 2015 on the preferred shares. On February 4, 2016 the dividend rate for the preferred shares increased to nine percent and as a result the Company incurred preferred stock dividends of $1,022,000 for the year ended December 31, 2016 . On January 30, 2017, the Company completed a public offering of 2,010,084 million shares of its common stock, par value $1.00 per share, with the gross proceeds to the Company of approximately $33.2 million . On March 6, 2017, the Company used proceeds from the offering to redeem the $12 million of preferred stock and pay the $195 thousand accrued dividend. |
Related Party Transactions (Q2)
Related Party Transactions (Q2) | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 9. Related Party Transactions On March 1, 2018, two directors agreed to purchase from the Bank 21,250 shares of the Company's stock for the closing market price of $21.70 per share. The shares were held by the Bank as collateral on a past due loan with an unrelated borrower.. Steven B. Tucker purchased 6,250 shares and W. Miller Welborn purchased 15,000 |
Subsequent Events (Q2)
Subsequent Events (Q2) | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 10. Subsequent Events On June 27, 2018, the Company entered into an agreement and plan of merger with Foothills Bancorp, Inc. ("Foothills Bancorp"), a Tennessee corporation and Foothills Bank and Trust, a Tennessee-chartered commercial bank and wholly owned subsidiary of Foothills Bancorp . Under the terms of the merger agreement, at the effective time of the merger, each outstanding share of Foothills Bancorp common stock will be converted into the right to receive $1.75 in cash and 0.666 shares of SmartFinancial common stock, (the "Stock Consideration"). As of June 26, 2018, Foothills Bancorp had 1,776,925 shares of common stock outstanding. The merger agreement contains customary representations, warranties, and covenants by all parties. Conditions to each party's obligation to consummate the Merger include the following, as well as other customary conditions: (1) approval of the merger Agreement by the holders of Foothills Bancorp common stock, (2) approval of the merger by regulatory authorities, (3) effectiveness of a registration statement for the shares issued as Stock Consideration, and (4) authorization to list the shares to be issued as Stock Consideration on the Nasdaq Capital Market. Conditions to SmartFinancial's obligation to consummate the merger include holders of not more than 10% of the outstanding shares of Foothills Bancorp common stock having perfected and not withdrawn or lost their rights to dissent from the Merger. The merger agreement provides certain termination rights for both SmartFinancial and Foothills Bancorp and further provides that, upon termination of the merger agreement under certain circumstances, Foothills Bancorp will be obligated to pay SmartFinancial a termination fee of $1,450,000 . |
Summary of Significant Accounti
Summary of Significant Accounting Policies (FY) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1. Summary of Significant Accounting Policies Nature of Business: SmartFinancial, Inc. (the " Company ") is a bank holding company whose principal activity is the ownership and management of its wholly-owned subsidiary, SmartBank (the " Bank "). The Company provides a variety of financial services to individuals and corporate customers through its offices in Tennessee, Alabama, Florida, and Georgia. The Company's primary deposit products are interest-bearing demand deposits and certificates of deposit. Its primary lending products are commercial, residential, and consumer loans. On May 22, 2017, the Company along with the Bank entered into an agreement and plan of merger with Capstone Bancshares, Inc., an Alabama corporation and Capstone Bank, an Alabama-chartered commercial bank and wholly owned subsidiary of Capstone Bancshares, Inc. which became effective on November 1, 2017. Basis of Presentation and Accounting Estimates: The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany balances and transactions have been eliminated in consolidation. In preparing the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet, and reported amounts of revenues and expenses during the reporting period. Actual results could differ 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 valuation of foreclosed assets and deferred taxes, other than temporary impairments of securities, and the fair value of financial instruments. The determination of the adequacy of the allowance for loan losses is based on estimates that are particularly susceptible to significant changes in the economic environment and market conditions. In connection with the determination of the estimated losses on loans, management obtains independent appraisals for significant collateral. The Company's loans are generally secured by specific items of collateral including real property, consumer assets, and business assets. Although the Company has a diversified loan portfolio, a substantial portion of its debtors' ability to honor their contracts is dependent on local economic conditions. While management uses available information to recognize losses on loans, further reductions in the carrying amounts of loans may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the estimated losses on loans. Such agencies may require the Company to recognize additional losses based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the estimated losses on loans may change materially in the near term. The Company has evaluated subsequent events for potential recognition and/or disclosure in the consolidated financial statements and accompanying notes included in this Annual Report through the date of the issued consolidated financial statements. Cash and Cash Equivalents: For purposes of reporting consolidated cash flows, cash and due from banks includes cash on hand, cash items in process of collection and amounts due from banks. Cash and cash equivalents also includes interest-bearing deposits in banks and federal funds sold. Cash flows from loans, federal funds sold, securities sold under agreements to repurchase and deposits are reported net. The Bank is required to maintain average balances in cash or on deposit with the Federal Reserve Bank. The reserve requirement was $16,546,000 and $15,208,000 at December 31, 2017 and 2016 , respectively. The Company places its cash and cash equivalents with other financial institutions and limits the amount of credit exposure to any one financial institution. From time to time, the balances at these financial institutions exceed the amount insured by the Federal Deposit Insurance Corporation. The Company has not experienced any losses on these accounts and management considers this to be a normal business risk. Securities: Management has classified all securities as available for sale. Securities available for sale are recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive loss. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. The Company evaluates investment securities quarterly for other than temporary impairment using relevant accounting guidance specifying that (a) if the Company does not have the intent to sell a debt security prior to recovery and (b) it is more likely than not that it will not have to sell the debt security prior to recovery, the security would not be considered other than temporarily impaired unless a credit loss has occurred in the security. If management does not intend to sell the security and it is more likely than not that they will not have to sell the security before recovery of the cost basis, management will recognize the credit component of an other-than- temporary impairment of a debt security in earnings and the remaining portion in other comprehensive loss. Securities borrowed or purchased under agreements to resell and securities loaned or sold under agreements to repurchase are treated as collateralized financial transactions. These agreements are recorded at the amount at which the securities were acquired or sold plus accrued interest. It is the Company's policy to take possession of securities purchased under resale agreements. The market value of these securities is monitored, and additional securities are obtained when deemed appropriate to ensure such transactions are adequately collateralized. The Company also monitors its exposure with respect to securities sold under repurchase agreements, and a request for the return of excess securities held by the counterparty is made when deemed appropriate. Restricted - Investments: The Company is required to maintain an investment in capital stock of various entities. Based on redemption provisions of these entities, the stock has no quoted market value and is carried at cost. At their discretion, these entities may declare dividends on the stock. Management reviews for impairment based on the ultimate recoverability of the cost basis in these stocks. Loans: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal balances less deferred fees and costs on originated loans and the allowance for loan losses. Interest income is accrued on the outstanding principal balance. Loan origination fees, net of certain direct origination costs of consumer and installment loans are recognized at the time the loan is placed on the books. Loan origination fees for all other loans are deferred and recognized as an adjustment of the yield over the life of the loan using the straight-line method without anticipating prepayments. The accrual of interest on loans is discontinued when, in management's opinion, the borrower may be unable to meet payments as they become due, or at the time the loan is 90 days past due, unless the loan is well-secured and in the process of collection. Unsecured loans are typically charged off no later than 120 days past due. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal and interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income or charged to the allowance, unless management believes that the accrual of interest is recoverable through the liquidation of collateral. Interest income on nonaccrual loans is recognized on the cash basis, until the loans are returned to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and the loan has been performing according to the contractual terms for a period of not less than six months. Acquired Loans: Acquired loans are those acquired in business combinations by the Company or Bank. The fair values of acquired loans with evidence of credit deterioration, purchased credit impaired loans (“ PCI loans ”), are recorded net of a nonaccretable discount and accretable discount. Any excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable discount and is recognized in interest income over the remaining life of the loan when there is reasonable expectation about the amount and timing of such cash flows. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is the nonaccretable discount, which is included in the carrying amount of acquired loans. Subsequent decreases to the expected cash flows will generally result in a provision for loan losses. Subsequent increases in cash flows result in a reversal of the provision for loan losses to the extent of prior charges or a reclassification of the difference from nonaccretable to accretable with a positive impact on the accretable discount. Acquired loans are initially recorded at fair value at acquisition date. Accretable discounts related to certain fair value adjustments are accreted into income over the estimated lives of the loans. The Company accounts for performing loans acquired in the acquisition using the expected cash flows method of recognizing discount accretion based on the acquired loans' expected cash flows. Management recasts the estimate of cash flows expected to be collected on each acquired impaired loan pool periodically. If the present value of expected cash flows for a pool is less than its carrying value, an impairment is recognized by an increase in the allowance for loan losses and a charge to the provision for loan losses. If the present value of expected cash flows for a pool is greater than its carrying value, any previously established allowance for loan losses is reversed and any remaining difference increases the accretable yield which will be taken into interest income over the remaining life of the loan pool. Acquired impaired loans are generally not subject to individual evaluation for impairment and are not reported with impaired loans, even if they would otherwise qualify for such treatment. Purchased performing loans are recorded at fair value, including a credit discount. Credit losses on acquired performing loans are estimated based on analysis of the performing portfolio. Such estimated credit losses are recorded as nonaccretable discounts in a manner similar to purchased impaired loans. The fair value discount other than for credit loss is accreted as an adjustment to yield over the estimated lives of the loans. A provision for loan losses is recorded for any deterioration in these loans subsequent to the acquisition. Allowance for Loan Losses: The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to expense. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Confirmed losses are charged off immediately. Subsequent recoveries, if any, are credited to the allowance. The allowance is an amount that management believes will be adequate to absorb estimated losses relating to specifically identified loans, as well as probable credit losses inherent in the balance of the loan portfolio. The allowance for loan losses is evaluated on a regular basis by management and is based upon management's periodic review of the uncollectibility of loans in light of historical experience, the nature and volume of the loan portfolio, overall portfolio quality, review of specific problem loans, current economic conditions that may affect the borrower's ability to pay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. This evaluation does not include the effects of expected losses on specific loans or groups of loans that are related to future events or expected changes in economic conditions. While management uses the best information available to make its evaluation, future adjustments to the allowance may be necessary if there are significant changes in economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company's allowance for loan losses, and may require the Company to make additions to the allowance based on their judgment about information available to them at the time of their examinations. The allowance consists of specific and general components. The specific component relates to loans that are classified as impaired. For impaired loans, an allowance is established when the discounted cash flows, collateral value, or observable market price of the impaired loan is lower than the carrying value of that loan. The general component covers non-impaired loans and is based on the Company's historical loss experience adjusted for other qualitative factors. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. An unallocated component may be maintained to cover uncertainties that could affect management's estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. As part of the risk management program, an independent review is performed on the loan portfolio, which supplements management’s assessment of the loan portfolio and the allowance for loan losses. The result of the independent review is reported directly to the Audit Committee of the Board of Directors. Loans, for which the terms have been modified at the borrower's request, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. A loan is considered impaired when it is probable, based on current information and events, the Company will be unable to collect all principal and interest payments due in accordance with 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 when due. Loans that experience insignificant payment delays and payment shortfalls are not classified as impaired. Impaired loans are measured by either the present value of expected future cash flows discounted at the loan's effective interest rate, the loan's obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Interest on accruing impaired loans is recognized as long as such loans do not meet the criteria for nonaccrual status. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. The Company's homogeneous loan pools include consumer real estate loans, commercial real estate loans, construction and land development loans, commercial and industrial loans, and consumer and other loans. The general allocations to these loan pools are based on the historical loss rates for specific loan types and the internal risk grade, if applicable, adjusted for both internal and external qualitative risk factors. The qualitative factors considered by management include, among other factors, (1) changes in local and national economic conditions; (2) changes in asset quality; (3) changes in loan portfolio volume; (4) the composition and concentrations of credit; (5) the impact of competition on loan structuring and pricing; (6) the impact of interest rate changes on portfolio risk and (7) effectiveness of the Company's loan policies, procedures and internal controls. The total allowance established for each homogeneous loan pool represents the product of the historical loss ratio adjusted for qualitative factors and the total dollar amount of the loans in the pool. Troubled Debt Restructurings: The Company designates loan modifications as troubled debt restructurings ("TDRs") when for economic and legal reasons related to the borrower's financial difficulties, it grants a concession to the borrower that it would not otherwise consider. TDRs can involve loans remaining on nonaccrual, moving to nonaccrual, or continuing on accrual status, depending on the individual facts and circumstances of the borrower. In circumstances where the TDR involves charging off a portion of the loan balance, the Company typically classifies these restructurings as nonaccrual. In connection with restructurings, the decision to maintain a loan that has been restructured on accrual status is based on a current, well documented credit evaluation of the borrower's financial condition and prospects for repayment under the modified terms. This evaluation includes consideration of the borrower's current capacity to pay, which among other things may include a review of the borrower's current financial statements, an analysis of global cash flow sufficient to pay all debt obligations, a debt to income analysis, and an evaluation of secondary sources of payment from the borrower and any guarantors. This evaluation also includes an evaluation of the borrower's current willingness to pay, which may include a review of past payment history, an evaluation of the borrower's willingness to provide information on a timely basis, and consideration of offers from the borrower to provide additional collateral or guarantor support. The credit evaluation also reflects consideration of the borrower's future capacity and willingness to pay, which may include evaluation of cash flow projections, consideration of the adequacy of collateral to cover all principal and interest, and trends indicating improving profitability and collectability of receivables. Restructured nonaccrual loans may be returned to accrual status based on a current, well-documented credit evaluation of the borrower's financial condition and prospects for repayment under the modified terms. This evaluation must include consideration of the borrower's sustained historical repayment for a reasonable period, generally a minimum of six months, prior to the date on which the loan is returned to accrual status. Foreclosed Assets: Foreclosed assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less selling costs. Any write-down to fair value at the time of transfer to foreclosed assets is charged to the allowance for loan losses. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less costs to sell. Costs of improvements are capitalized, whereas costs relating to holding foreclosed assets and subsequent write-downs to the value are expensed. The amount of residential real estate where physical possession had been obtained included within foreclosed assets at December 31, 2017 and 2016 was $545,750 and $1,500 , respectively. The amount of residential real estate in process of foreclosure at December 31, 2017 and December 31, 2016 was $0 . Premises and Equipment: Land is carried at cost. Premises and equipment are carried at cost less accumulated depreciation computed on the straight-line method over the estimated useful lives of the assets or the expected terms of the leases, if shorter. Expected terms include lease option periods to the extent that the exercise of such options is reasonably assured. Maintenance and repairs are expensed as incurred while major additions and improvements are capitalized. Gains and losses on dispositions are included in current operations. Buildings and leasehold improvements 15 - 40 years Furniture and equipment 3-7 years Goodwill and Intangible Assets: Goodwill represents the cost in excess of the fair value of net assets acquired (including identifiable intangibles) in transactions accounted for as business combinations. Goodwill has an indefinite useful life and is evaluated for impairment annually, or more frequently if events and circumstances indicate that the asset might be impaired. FASB ASC 350, Goodwill and Other , regarding testing goodwill for impairment provides an entity the option to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If an entity does a qualitative assessment and determines that this is the case, or if a qualitative assessment is not performed, it is required to perform additional goodwill impairment testing to identify potential goodwill impairment and measure the amount of goodwill impairment loss to be recognized for that reporting unit (if any). Based on a qualitative assessment, if an entity determines that the fair value of a reporting unit is more than its carrying amount, the two-step goodwill impairment test is not required. The Company performs its annual goodwill impairment test as of December 31 of each year. For 2017 , the results of the qualitative assessment provided no indication of potential impairment. Goodwill will continue to be monitored for triggering events that may indicate impairment prior to the next scheduled annual impairment test. Intangible assets consist of core deposit premiums created as a result of Business Combinations by the Company or Bank where deposits are assumed. The core deposit premium is initially recognized based on a valuation performed as of the consummation date. The core deposit premium is amortized over the average remaining life of the acquired customer deposits. Amortization expense relating to these intangible assets was $346,435 and $305,452 for the years ended December 31, 2017 and 2016 , respectively. The intangible assets were evaluated for impairment as of December 31, 2017 , and based on that evaluation it was determined that there was no impairment. Transfer 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 the 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. Advertising Costs: The Company expenses all advertising costs as incurred. Advertising expense was $637,600 and $615,751 for the years ended December 31, 2017 and 2016 , respectively. Income Taxes: The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management's judgment. Deferred tax assets may be reduced by deferred tax liabilities and a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. On December 22, 2017, the Tax Cuts and Jobs Act (TCJA) was signed into law by the President of the United States. TCJA is a tax reform act that among other things, reduced corporate tax rates to 21 percent effective January 1, 2018. FASB ASC 740, Income Taxes , requires deferred tax assets and liabilities to be adjusted for the effect of a change in tax laws or rates in the year of enactment, which is the year in which the change was signed into law. Accordingly, the Company adjusted its deferred tax assets and liabilities at December 31, 2017, using the new corporate tax rate of 21 percent. See Note 8. Stock Compensation Plans: At December 31, 2017 , the Company had options outstanding under stock-based compensation plans, which are described in more detail in Note 10. The plans have been accounted for under the accounting guidance (FASB ASC 718, Compensation - Stock Compensation) which requires that the compensation cost relating to share-based payment transactions be recognized in financial statements. That cost will be measured based on the grant date fair value of the equity or liability instruments issued. The stock compensation accounting guidance covers a wide range of share-based compensation arrangements including stock options, restricted share plans, performance-based awards, share appreciation rights, and stock or other stock based awards. The stock compensation accounting guidance requires that compensation cost for all stock awards be calculated and recognized over the employees' service period, generally defined as the vesting period. For awards with graded-vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. A Black-Scholes model is used to estimate the fair value of stock options, while the market value of the Company's common stock at the date of grant is used for restrictive stock awards and stock grants. Employee Benefit Plan: Employee benefit plan costs are based on the percentage of individual employee's salary, not to exceed the amount that can be deducted for federal income tax purposes. Variable interest entities: An entity is referred to as a variable interest entity (VIE) if it meets the criteria outlined in ASC Topic 810, which are: (1) the entity has equity that is insufficient to permit the entity to finance its activities without additional subordinated financial support from other parties or (2) the entity has equity investors that cannot make significant decisions about the entity's operations or that do not absorb the expected losses or receive the expected returns of the entity. A VIE must be consolidated by the Company if it is deemed to be the primary beneficiary of the VIE, which is the party involved with the VIE that has a majority of the expected losses, expected residual returns, or both. At December 31, 2017 , the Company had an investment in Community Advantage Fund, LLC that qualified as an unconsolidated VIE. The Company’s investment in a partnership consists of an equity interest in a lending partnership for the purposes of loaning funds to an unrelated entity. This entity will use the funds to make loans through the SBA Community Advantage loan Initiative. The Company uses the equity method when it owns an interest in a partnership and can exert significant influence over the partnership’s operations. Under the equity method, the Company’s ownership interest in the partnership’s capital is reported as an investment on its consolidated balance sheets in other assets and the Company’s allocable share of the income or loss from the partnership is reported in noninterest income or expense in the consolidated statements of income. The Company ceases recording losses on an investment in partnership when the cumulative losses and distributions from the partnership exceed the carrying amount of the investment and any advances made by the Company. After the Company’s investment in such partnership reaches zero, cash distributions received from these investments are recorded as income. Comprehensive Income: Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities, are reported as a separate component of the equity section of the balance sheet, such items, along with net income, are components of comprehensive income. Fair Value of Financial Instruments: Fair values of financial instruments are estimates using relevant market information and other assumptions, as more fully disclosed in Note 15. Fair value estimates involve uncertainties and matters of significant judgment. Changes in assumptions or in market conditions could significantly affect the estimates. Business Combinations: Business combinations are accounted for using the acquisition method of accounting. Under the acquisition method of accounting, acquired assets and assumed liabilities are included with the acquirer's accounts as of the date of acquisition at estimated fair value, with any excess of purchase price over the fair value of the net assets acquired (including identifiable intangible assets) capitalized as goodwill. In the event that the fair value of the net assets acquired exceeds the purchase price, an acquisition gain is recorded for the difference in consolidated statements of income for the period in which the acquisition occurred. An intangible asset is recognized as an asset apart from goodwill when it arises from contractual or other legal rights or if it is capable of being separated or divided from the acquired entity and sold, transferred, licensed, rented or exchanged. In addition, acquisition-related costs and restructuring costs are recognized as period expenses as incurred. Estimates of fair value are subject to refinement for a period not to exceed one year from acquisition date as information relative to acquisition date fair values becomes available. Earnings per common share: Basic earnings per common share represents income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to restricted stock and outstanding stock options and are determined using the treasury stock method. Segment Reporting: ASC Topic 280, “Segment Reporting,” provides for the identification of reportable segments on the basis of distinct business units and their financial information to the extent such units are reviewed by an entity’s chie |
Business Combination (FY)
Business Combination (FY) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Business Combinations [Abstract] | ||
Business Combination | Note 2. Business Combination Acquisition of branch from Atlantic Capital Bank, N.A. On December 8, 2016, the Bank entered into a purchase and assumption agreement with Atlantic Capital Bank, N.A. that provided for the acquisition and assumption by the Bank of certain assets and liabilities associated with Atlantic Capital Bank’s branch office located at 3200 Keith Street NW, Cleveland, Tennessee 37312. The purchase was completed on May 19, 2017 for total cash consideration of $1.2 million. The assets and liabilities as of the effective date of the transaction were recorded at their respective estimated fair values. The excess of the purchase price over the net estimated fair values of the acquired assets and liabilities was allocated to identifiable intangible assets with the remaining excess allocated to goodwill. In the periods following the acquisition, the financial statements will include the results attributable to the Cleveland branch purchase beginning on the date of purchase. For the three and six months period ended June 30, 2018 , the revenues attributable to the Cleveland branch were $381 thousand and $754 thousand , respectively. For the three and six months period ended June 30, 2018 , net income attributable to the Cleveland branch was a net income of $105 thousand and net income of $194 thousand , respectively. It is impracticable to determine the pro-forma impact to the 2017 revenues and net income if the acquisition had occurred on January 1, 2017 as the Company does not have access to those records for a single branch. The following table details the financial impact of the transaction, including the allocation of the purchase price to the fair values of net assets assumed and goodwill recognized: Allocation of Purchase Price (in thousands) Total consideration in cash $ 1,183 Fair value of assets acquired and liabilities assumed: Cash and cash equivalents 133 Loans 24,073 Premises and equipment 2,839 Core deposit intangible 310 Prepaid and other assets 77 Deposits (26,888 ) Payables and other liabilities (21 ) Total fair value of net assets acquired 523 Goodwill $ 660 As of June 30, 2018 there have not been any changes to the initial fair values recorded as part of the business combination. Acquisition of Capstone Bancshares, Inc. On May 22, 2017, the shareholders of the Company approved a merger with Capstone Bancshares, Inc. ("Capstone"), the one bank holding company of Capstone Bank, which became effective November 1, 2017. Capstone shareholders received either: (a) 0.85 shares of common stock, (b) $18.50 in cash, or (c) a combination of 80% common stock and 20% cash. Elections were limited by the requirement that 80% of the total shares of Capstone common stock be exchanged for common stock and 20% be exchanged for cash. Therefore, the allocation of common stock and cash that a Capstone shareholder received depended on the elections of other Capstone shareholders, and were allocated in accordance with the procedures set forth in the merger agreement. Capstone shareholders also received cash instead of any fractional shares they would have otherwise received in the merger. After the merger, shareholders of SmartFinancial owned approximately 74% of the outstanding common stock of the combined entity on a fully diluted basis, after taking into account the exchange ratio. The merger is being accounted for using the acquisition method of accounting, in accordance with the provisions of FASB ASC 805-10 Business Combinations. Under this guidance, for accounting purposes, the Company is considered the acquirer in the merger, and as a result the historical financial statements of the combined entity are the historical consolidated financial statements of the Company. The merger was effected by the issuance of shares of SmartFinancial stock along with cash consideration to shareholders of Capstone. The assets and liabilities of Capstone as of the effective date of the merger were recorded at their respective estimated fair values and combined with those of SmartFinancial. The excess of the purchase price over the net estimated fair values of the acquired assets and liabilities was allocated to identifiable intangible assets with the remaining excess allocated to goodwill. Goodwill from the transaction was $38.0 million , none of which is deductible for income tax purposes. In periods following the merger, the financial statements of the combined entity will include the results attributable to Capstone beginning on the date the merger was completed. In the three and six month period ended June 30, 2018, the revenues attributable to Capstone were approximately $7.6 million and $14.5 million . In the three and six month period ended June 30, 2018, the net income attributable to Capstone was approximately $3.4 million and $6.0 million , respectively. The pro-forma impact to 2017 revenues if the merger had occurred on December 31, 2016 would have been $6.2 million and $12.5 million for the three and six month period ending June 30, 2017, respectively. The pro-forma impact to 2017 net income if the merger had occurred on December 31, 2016 would have been $237 thousand and $473 thousand for the three and six month period ending June 30, 2017, respectively. While certain adjustments were made for the estimated impact of certain fair value adjustments, they are not indicative of what would have occurred had the merger taken place on the indicated date nor are they intended to represent or be indicative of future results of operations. In particular, no adjustments have been made to eliminate the amount of Capstone's provision for credit losses not have been necessary or any adjustments to estimate any additional income that would have been recorded as a result of fair value adjustments for the first six months of 2017 that may have occurred had the acquired loans been recorded at fair value as of the beginning of 2017. In addition there are no adjustments to reflect any expenses that potentially could have been reduced for the first six months of 2017 had the merger occurred on December 31, 2016. There were $4.6 million in nonrecurring pro forma adjustments to expense included in the reported proforma revenue and earnings. The fair value estimates of Capstone’s assets and liabilities recorded are preliminary and subject to refinement as additional information becomes available. Under current accounting principles, the Company’s estimates of fair values may be adjusted for a period of up to one year from the acquisition date. As of June 30, 2018 there was a $11 thousand adjustment to reduce fair values initially recorded as part of the business combination. The following table details the financial impact of the merger, including the calculation of the purchase price, the allocation of the purchase price to the fair values of net assets assumed, and goodwill recognized: Calculation of Purchase Price Shares of SMBK common stock issued to Capstone shareholders as of November 1, 2017 2,908,094 Market price of SMBK common stock on November 1, 2017 $ 23.49 Estimated fair value of SMBK common stock issued (in thousands) 68,311 Estimated fair value of Capstone stock options (in thousands) 1,585 Cash consideration paid 15,826 Total consideration (in thousands) $ 85,722 Allocation of Purchase Price (in thousands) Total consideration above $ 85,722 Fair value of assets acquired and liabilities assumed: Cash and cash equivalents 16,810 Investment securities available for sale 51,638 Restricted investments 1,049 Loans 413,023 Premises and equipment 8,668 Bank owned life insurance 10,031 Core deposit intangible 5,530 Other real estate owned 410 Prepaid and other assets 6,360 Deposits (454,154 ) FHLB advances and other borrowings (4,887 ) Payables and other liabilities (6,803 ) Total fair value of net assets acquired 47,675 Goodwill $ 38,047 Acquisition of Tennessee Bancshares, Inc. On May 1, 2018, the Company completed its merger with Tennessee Bancshares, Inc., a Tennessee corporation (“Tennessee Bancshares”), pursuant to an Agreement and Plan of Merger dated December 12, 2017 (the “Tennessee Bancshares merger agreement”), by and among SmartFinancial, Tennessee Bancshares, and Southern Community Bank, a Tennessee-chartered commercial bank and wholly owned subsidiary of Tennessee Bancshares. Tennessee Bancshares merged with and into SmartFinancial, with SmartFinancial continuing as the surviving corporation. Immediately following the merger, Southern Community Bank merged with and into the Bank continuing as the surviving banking corporation. Pursuant to the Tennessee Bancshares merger agreement, each outstanding share of Tennessee Bancshares common stock was converted into and cancelled in exchange for 0.8065 shares of SmartFinancial common stock.. SmartFinancial issued approximately 1,458,981 shares of SmartFinancial common stock as consideration for the merger. SmartFinancial did not issue fractional shares of its common stock in connection with the merger, but instead paid cash in lieu of fractional shares based on the volume weighted average closing price of SmartFinancial common stock on the Nasdaq Capital Market for the 10 consecutive trading days ending on (and including) April 27, 2018 (calculated as $23.92 ). After the merger, shareholders of SmartFinancial owned approximately 88.6% of the outstanding common stock of the combined entity on a fully diluted basis, after taking into account the exchange ratio. The merger with Tennessee Bancshares is being accounted for using the acquisition method of accounting, in accordance with the provisions of FASB ASC 805-10 Business Combinations. Under this guidance, for accounting purposes, the Company is considered the acquirer in the merger, and as a result the historical financial statements of the combined entity are the historical consolidated financial statements of the Company. The merger was effected by the issuance of shares of SmartFinancial stock along with cash consideration to the fractional shareholders of Tennessee Bancshares, Inc. The assets and liabilities of Tennessee Bancshares as of the effective date of the merger were recorded at their respective estimated fair values and combined with those of SmartFinancial. The excess of the purchase price over the net estimated fair values of the acquired assets and liabilities was allocated to identifiable intangible assets with the remaining excess allocated to goodwill. Goodwill from the transaction was $15.7 million , none of which is deductible for income tax purposes. In periods following the Tennessee Bancshares merger, the financial statements of the combined entity will include the results attributable to Southern Community Bank beginning on the date the merger was completed. In the three and six months period ended June 30, 2018, the revenues and net income attributable to Southern Community Bank were approximately $2.4 million and $800 thousand , respectively. The pro-forma impact to 2017 revenues if the merger had occurred on December 31, 2016 would have been $3.7 million and $7.3 million for the three and six month period ending June 30, 2017, respectively. The pro-forma impact to 2017 net income if the merger had occurred on December 31, 2016 would have been $909 thousand and $1.8 million for the three and six month period ending June 30, 2017, respectively. While certain adjustments were made for the estimated impact of certain fair value adjustments, they are not indicative of what would have occurred had the merger taken place on the indicated date nor are they intended to represent or be indicative of future results of operations. In particular, no adjustments have been made to eliminate the amount of Southern Community Bank's provision for credit losses not have been necessary or any adjustments to estimate any additional income that would have been recorded as a result of fair value adjustments for the first six months of 2017 that may have occurred had the acquired loans been recorded at fair value as of the beginning of 2017. In addition there are no adjustments to reflect any expenses that potentially could have been reduced for the first six months of 2017 had the merger occurred on December 31, 2016. There were $1.3 million nonrecurring pro forma adjustments to expense included in the reported proforma earnings. The fair value estimates of Tennessee Bancshares assets and liabilities recorded are preliminary and subject to refinement as additional information becomes available. Under current accounting principles, the Company’s estimates of fair values may be adjusted for a period of up to one year from the acquisition date. As of June 30, 2018 there were no adjustments to fair values initially recorded as part of the business combination. The following table details the financial impact of the merger, including the calculation of the purchase price, the allocation of the purchase price to the fair values of net assets assumed, and goodwill recognized: Calculation of Purchase Price Shares of SMBK common stock issued to TN Bancshares shareholders as of May 1, 2018 1,458,981 Market price of SMBK common stock on May 1, 2018 $ 23.85 Estimated fair value of SMBK common stock issued (in thousands) 34,797 Cash consideration paid 5 Total consideration (in thousands) $ 34,802 Allocation of Purchase Price (in thousands) Total consideration above $ 34,802 Fair value of assets acquired and liabilities assumed: Cash and cash equivalents 5,723 Investment securities available for sale 24,563 Restricted investments 464 Loans 180,490 Premises and equipment 9,470 Core deposit intangible 2,290 Other real estate owned 674 Prepaid and other assets 2,258 Deposits (202,272 ) FHLB advances and other borrowings (4,000 ) Payables and other liabilities (586 ) Total fair value of net assets acquired 19,074 Goodwill $ 15,728 | Note 2. Business Combinations On December 8, 2016, the Bank entered into a purchase and assumption agreement with Atlantic Capital Bank, N.A. that provided for the acquisition and assumption by the Bank of certain assets and liabilities associated with Atlantic Capital Bank’s branch office located at 3200 Keith Street NW, Cleveland, Tennessee 37312. The purchase was completed on May 19, 2017 for total cash consideration of $1,183,007 . The assets and liabilities as of the effective date of the transaction were recorded at their respective estimated fair values. The excess of the purchase price over the net estimated fair values of the acquired assets and liabilities was allocated to identifiable intangible assets with the remaining excess allocated to goodwill. In the periods following the acquisition, the financial statements will include the results attributable to the Cleveland branch purchase beginning on the date of purchase. For the twelve months period ended December 31, 2017, the revenues and net income attributable to the Cleveland branch were $903,311 and $63,385 , respectively. It is impracticable to determine the pro-forma impact to the 2017 revenues and net income if the acquisition had occurred on January 1, 2017 as the Company does not have access to those records for a single branch. The following table details the financial impact of the transaction, including the allocation of the purchase price to the fair values of net assets assumed and goodwill recognized: Allocation of Purchase Price (in thousands) Total consideration in cash $ 1,183 Fair value of assets acquired and liabilities assumed: Cash and cash equivalents 133 Loans 24,073 Premises and equipment 2,839 Core deposit intangible 310 Prepaid and other assets 77 Deposits (26,888 ) Payables and other liabilities (21 ) Total fair value of net assets acquired 523 Goodwill $ 660 As of December 31, 2017 there have not been any changes to the initial fair values recorded as part of the business combination. On May 22, 2017, the shareholders of the SmartFinancial, Inc (“ SmartFinancial ”) approved a merger with Capstone Bancshares, Inc. ("Capstone"), the one bank holding company of Capstone Bank, which became effective November 1, 2017. Capstone shareholders received either: (a) 0.85 shares of SmartFinancial common stock, (b) $18.50 in cash, or (c) a combination of 80% SmartFinancial common stock and 20% cash. Elections were limited by the requirement that 80% of the total shares of Capstone common stock be exchanged for SmartFinancial common stock and 20% be exchanged for cash. Therefore, the allocation of SmartFinancial common stock and cash that a Capstone shareholder received depended on the elections of other Capstone shareholders, and were allocated in accordance with the procedures set forth in the merger agreement. Capstone shareholders also received cash instead of any fractional shares they would have otherwise received in the merger. After the merger, shareholders of SmartFinancial owned approximately 74% of the outstanding common stock of the combined entity on a fully diluted basis, after taking into account the exchange ratio. The merger is being accounted for using the acquisition method of accounting, in accordance with the provisions of FASB ASC 805-10 Business Combinations. Under this guidance, for accounting purposes, SmartFinancial is considered the acquirer in the merger, and as a result the historical financial statements of the combined entity will be the historical financial statements of SmartFinancial. The merger was effected by the issuance of shares of SmartFinancial stock along with cash consideration to shareholders of Capstone. The assets and liabilities of Capstone as of the effective date of the merger were recorded at their respective estimated fair values and combined with those of SmartFinancial. The excess of the purchase price over the net estimated fair values of the acquired assets and liabilities was allocated to identifiable intangible assets with the remaining excess allocated to goodwill. Goodwill from the transaction was $38.0 million , none of which is deductible for income tax purposes. In periods following the merger, the financial statements of the combined entity will include the results attributable to Capstone beginning on the date the merger was completed. In the period ended December 31, 2017, the revenues and net income attributable to Capstone were $5.0 million and $0.2 million , respectively. The pro-forma impact to 2017 revenues and net income if the merger had occurred on December 31, 2016 would have been $24.9 million and $947 thousand , respectively. The fair value estimates of Capstone’s assets and liabilities recorded are preliminary and subject to refinement as additional information becomes available. Under current accounting principles, the Company’s estimates of fair values may be adjusted for a period of up to one year from the acquisition date. The following table details the financial impact of the merger, including the calculation of the purchase price, the allocation of the purchase price to the fair values of net assets assumed, and goodwill recognized: Calculation of Purchase Price Shares of SMBK common stock issued to Capstone shareholders as of November 1, 2017 2,908,094 Market price of SMBK common stock on November 1, 2017 $ 23.49 Estimated fair value of SMBK common stock issued (in thousands) 68,311 Estimated fair value of Capstone stock options (in thousands) 1,585 Cash consideration paid 15,826 Total consideration (in thousands) $ 85,722 Allocation of Purchase Price (in thousands) Total consideration above $ 85,722 Fair value of assets acquired and liabilities assumed: Cash and cash equivalents 16,810 Investment securities available for sale 51,638 Restricted investments 1,049 Loans 413,023 Premises and equipment 8,668 Bank owned life insurance 10,031 Core deposit intangible 5,530 Other real estate owned 410 Prepaid and other assets 6,360 Deposits (454,154 ) FHLB advances and other borrowings (4,887 ) Payables and other liabilities (6,803 ) Total fair value of net assets acquired 47,675 Goodwill $ 38,047 |
Securities (FY)
Securities (FY) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||
Securities | Note 4. Securities The amortized cost and fair value of securities available-for-sale at June 30, 2018 and December 31, 2017 are summarized as follows (in thousands): June 30, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Government-sponsored enterprises (GSEs) $ 29,137 $ — $ (1,009 ) $ 28,128 Municipal securities 15,896 8 (320 ) 15,584 Other debt securities 976 — (65 ) 911 Mortgage-backed securities (GSEs) 114,538 171 (2,755 ) 111,954 $ 160,547 $ 179 $ (4,149 ) $ 156,577 December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Government-sponsored enterprises (GSEs) $ 26,207 $ 1 $ (432 ) $ 25,776 Municipal securities 9,122 28 (147 ) 9,003 Other debt securities 974 — (24 ) 950 Mortgage-backed securities (GSEs) 117,263 136 (1,184 ) 116,215 $ 153,566 $ 165 $ (1,787 ) $ 151,944 At June 30, 2018 and December 31, 2017, securities with a fair value totaling approximately $113.5 million and $97.2 million, respectively were pledged to secure public funds and securities sold under agreements to repurchase. For the three and six months ended June 30, 2018 and June 30, 2017 , there were no available-for-sale securities sold. For the three and six months ended June 30, 2018, a security was called for less than the amortized cost resulting in a realized loss of $1,200 . The amortized cost and estimated fair value of securities at June 30, 2018 , by contractual maturity for non-mortgage backed securities, are shown below (in thousands). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Fair Value Due in one year or less $ — $ — Due from one year to five years 21,554 20,901 Due from five years to ten years 13,995 13,366 Due after ten years 10,460 10,356 46,009 44,623 Mortgage-backed securities 114,538 111,954 $ 160,547 $ 156,577 The following tables present the gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities available-for-sale have been in a continuous unrealized loss position, as of June 30, 2018 and December 31, 2017 (in thousands): As of June 30, 2018 Less than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses U.S. Government- sponsored enterprises (GSEs) $ 14,862 $ (425 ) $ 13,266 $ (584 ) $ 28,128 $ (1,009 ) Municipal securities 11,966 (182 ) 2,072 (138 ) 14,038 (320 ) Other debt securities — — 911 (65 ) 911 (65 ) Mortgage-backed securities (GSEs) 58,377 (1,654 ) 29,911 (1,101 ) 88,288 (2,755 ) $ 85,205 $ (2,261 ) $ 46,160 $ (1,888 ) $ 131,365 $ (4,149 ) As of December 31, 2017 Less than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses U.S. Government- sponsored enterprises (GSEs) $ 1,358 $ (1 ) $ 13,420 $ (431 ) $ 14,778 $ (432 ) Municipal securities 3,418 (43 ) 2,112 (104 ) 5,530 (147 ) Other debt securities 950 (24 ) — — 950 (24 ) Mortgage-backed securities (GSEs) 61,332 (407 ) 35,048 (777 ) 96,380 (1,184 ) $ 67,058 $ (475 ) $ 50,580 $ (1,312 ) $ 117,638 $ (1,787 ) At June 30, 2018 , the categories of temporarily impaired securities, and management’s evaluation of those securities, are as follows: U.S. Government-sponsored enterprises : At June 30, 2018 , 8 (or eight) investments in U.S. GSE securities had unrealized losses. These unrealized losses related principally to changes in market interest rates. The contractual terms of the investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Bank does not intend to sell the investments and it is more likely than not that the Bank will not be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Bank does not consider these investments to be other-than temporarily impaired at June 30, 2018 . Municipal securities : At June 30, 2018 , 21 (or twenty one) investments in obligations of municipal securities had unrealized losses. The Bank believes the unrealized losses on those investments were caused by the interest rate environment and do not relate to the underlying credit quality of the issuers. Because the Bank does not intend to sell the investments and it is not more likely than not that the Bank will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Bank does not consider these investments to be other-than temporarily impaired at June 30, 2018 . Other debt securities : At June 30, 2018 , 1 (or one) investment in other debt securities had unrealized losses. The Bank believes the unrealized loss on this investment was caused by the interest rate environment and does not relate to the underlying credit quality of the issuer. Because the Bank does not intend to sell the investment and it is not more likely than not that the Bank will be required to sell the investment before recovery of its amortized cost bases, which may be maturity, the Bank does not consider this investment to be other-than temporarily impaired at June 30, 2018 . Mortgage-backed securities : At June 30, 2018 , 65 (or sixty five) investments in residential mortgage-backed securities had unrealized losses. This impairment is believed to be caused by the current interest rate environment. The contractual cash flows of those investments are guaranteed by an agency of the U.S. Government. Because the decline in market value is attributable to the current interest rate environment and not credit quality, and because the Bank does not intend to sell the investments and it is not more likely than not that the Bank will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Bank does not deem these investments to be other-than-temporarily impaired at June 30, 2018 . | Note 3. Securities The amortized cost and fair value of securities available-for-sale at December 31, 2017 and 2016 are summarized as follow (in thousands): December 31, 2017 Amortized Gross Gross Fair U.S. Government-sponsored enterprises (GSEs) $ 26,207 $ 1 $ (432 ) $ 25,776 Municipal securities 9,122 28 (147 ) 9,003 Other debt securities 974 — (24 ) 950 Mortgage-backed securities 117,263 136 (1,184 ) 116,215 Total $ 153,566 $ 165 $ (1,787 ) $ 151,944 December 31, 2016 Amortized Gross Gross Fair U.S. Government-sponsored enterprises (GSEs) $ 18,279 $ 8 $ (564 ) $ 17,723 Municipal securities 8,182 16 (179 ) 8,019 Mortgage-backed securities 104,585 185 (1,090 ) 103,680 Total $ 131,046 $ 209 $ (1,833 ) $ 129,422 The amortized cost and estimated market value of securities at December 31, 2017 , by contractual maturity, are shown below (in thousands). Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Fair Due in one year or less $ 2,174 $ 2,175 Due from one year to five years 21,606 21,292 Due from five years to ten years 8,037 7,822 Due after ten years 4,486 4,440 36,303 35,729 Mortgage-backed securities 117,263 116,215 Total $ 153,566 $ 151,944 The following tables present the gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities available-for-sale have been in a continuous unrealized loss position, as of December 31, 2017 and 2016 (in thousands): As of December 31, 2017 Less than 12 Months 12 Months or Greater Total Fair Gross Fair Gross Fair Gross U.S. Government- sponsored enterprises (GSEs) $ 1,358 $ (1 ) $ 13,420 $ (431 ) $ 14,778 $ (432 ) Municipal securities 3,418 (43 ) 2,112 (104 ) 5,530 (147 ) Other debt securities 950 (24 ) — — 950 (24 ) Mortgage-backed securities 61,332 (407 ) 35,048 (777 ) 96,380 (1,184 ) Total $ 67,058 $ (475 ) $ 50,580 $ (1,312 ) $ 117,638 $ (1,787 ) As of December 31, 2016 Less than 12 Months 12 Months or Greater Total Fair Gross Fair Gross Fair Gross U.S. Government- sponsored enterprises (GSEs) $ 14,702 $ (564 ) $ — $ — $ 14,702 $ (564 ) Municipal securities 6,368 (179 ) — — 6,368 (179 ) Mortgage-backed securities 67,063 (690 ) 8,948 (400 ) 76,011 (1,090 ) Total $ 88,133 $ (1,433 ) $ 8,948 $ (400 ) $ 97,081 $ (1,833 ) At December 31, 2017 , the categories of temporarily impaired securities, and management’s evaluation of those securities, are as follows: U.S. Government-sponsored enterprises: At December 31, 2017 , six investments in U.S. GSE securities had unrealized losses. These unrealized losses related principally to changes in market interest rates. The contractual terms of the investments does not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Bank does not intend to sell the investments and it is more likely than not that the Bank will not be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Bank does not consider these investments to be other-than temporarily impaired at December 31, 2017 . Municipal securities: At December 31, 2017 , thirteen investments in obligations of municipal securities had unrealized losses. The Bank believes the unrealized losses on those investments were caused by the interest rate environment and do not relate to the underlying credit quality of the issuers. Because the Bank does not intend to sell the investments and it is not more likely than not that the Bank will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Bank does not consider these investments to be other than temporarily impaired at December 31, 2017 . Other debt securities: At December 31, 2017 , one investment in other debt securities had unrealized losses. The Bank believes the unrealized losses on this investment was caused by the interest rate environment and does not relate to the underlying credit quality of the issuers. Because the Bank does not intend to sell the investment and it is not more likely than not that the Bank will be required to sell the investment before recovery of their amortized cost bases, which may be maturity, the Bank does not consider this investment to be other than temporarily impaired at December 31, 2017 . Mortgage-backed securities: At December 31, 2017 , sixty investments in residential mortgage-backed securities had unrealized losses. This impairment is believed to be caused by the current interest rate environment. The contractual cash flows of those investments are guaranteed by an agency of the U.S. Government. Because the decline in market value is attributable to the current interest rate environment and not credit quality, and because the Bank does not intend to sell the investments and it is not more likely than not that the Bank will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Bank does not consider these investments to be other than temporarily impaired at December 31, 2017 . Sales of available for sale securities for the years ended December 31, 2017 and 2016 , were as follows (in thousands): 2017 2016 Proceeds $ 12,614 $ 31,599 Gains realized 145 200 Losses realized 2 — Securities with a carrying value of $97,160,059 and $86,351,097 at December 31, 2017 and 2016 , respectively, were pledged to secure various deposits, securities sold under agreements to repurchase, as collateral for federal funds purchased from other financial institutions and serve as collateral for borrowings at the Federal Home Loan Bank. |
Loans and Allowance for Loan 29
Loans and Allowance for Loan Losses (FY) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | ||
Loans and Allowance for Loan Losses | Note 5. Loans and Allowance for Loan Losses Portfolio Segmentation: At June 30, 2018 and December 31, 2017 , loans are summarized as follows (in thousands): June 30, 2018 December 31, 2017 PCI Loans 1 All Other Loans Total PCI Loans 1 All Other Loans Total Commercial real estate $ 18,474 $ 727,390 $ 745,864 $ 17,903 $ 625,085 $ 642,988 Consumer real estate 6,987 348,889 355,876 7,450 286,007 293,457 Construction and land development 5,690 173,741 179,431 5,120 130,289 135,409 Commercial and industrial 821 278,950 279,771 858 237,229 238,087 Consumer and other 686 13,807 14,493 1,463 11,854 13,317 Total loans 32,658 1,542,777 1,575,435 32,794 1,290,464 1,323,258 Less: Allowance for loan losses (19 ) (7,055 ) (7,074 ) (16 ) (5,844 ) (5,860 ) Loans, net $ 32,639 $ 1,535,722 $ 1,568,361 $ 32,778 $ 1,284,620 $ 1,317,398 1 Purchased Credit Impaired loans (“PCI loans”) are loans with evidence of credit deterioration at purchase. For purposes of the disclosures required pursuant to the adoption of ASC 310, the loan portfolio was disaggregated into segments. A portfolio segment is defined as the level at which an entity develops and documents a systematic method for determining its allowance for credit losses. There are five loan portfolio segments that include commercial real estate, consumer real estate, construction and land development, commercial and industrial, and consumer and other. The following describe risk characteristics relevant to each of the portfolio segments: Commercial Real Estate: Commercial real estate loans include owner-occupied commercial real estate loans and loans secured by income-producing properties. Owner-occupied commercial real estate loans to operating businesses are long-term financing of land and buildings. These loans are repaid by cash flow generated from the business operation. Real estate loans for income-producing properties such as apartment buildings, office and industrial buildings, and retail shopping centers are repaid from rent income derived from the properties. Loans within this portfolio segment are particularly sensitive to the valuation of real estate. Consumer Real Estate: Consumer real estate loans include real estate loans secured by first liens, second liens, or open end real estate loans, such as home equity lines. These are repaid by various means such as a borrower's income, sale of the property, or rental income derived from the property. One to four family first mortgage loans are repaid by various means such as a borrower's income, sale of the property, or rental income derived from the property. Loans within this portfolio segment are particularly sensitive to the valuation of real estate. Construction and Land Development: Loans for real estate construction and development are repaid through cash flow related to the operations, sale or refinance of the underlying property. This portfolio segment includes extensions of credit to real estate developers or investors where repayment is dependent on the sale of the real estate or income generated from the real estate collateral. Loans within this portfolio segment are particularly sensitive to the valuation of real estate. Commercial and Industrial: The commercial and industrial loan portfolio segment includes commercial, financial, agricultural, and municipal loans. These loans include those loans to commercial customers for use in normal business operations to finance working capital needs, equipment purchases, or expansion projects. Loans are repaid by business cash flows. Collection risk in this portfolio is driven by the creditworthiness of the underlying borrower, particularly cash flows from the customers' business operations. Consumer and Other: The consumer loan portfolio segment includes direct consumer installment loans, overdrafts and other revolving credit loans, educational loans, and other loans which do not fall into the categories above. Loans in this portfolio are sensitive to unemployment and other key consumer economic measures. Credit Risk Management: The Company employs a credit risk management process with defined policies, accountability and routine reporting to manage credit risk in the loan portfolio segments. Credit risk management is guided by credit policies that provide for a consistent and prudent approach to underwriting and approvals of credits. Within the Credit Policy, procedures exist that elevate the approval requirements as credits become larger and more complex. All loans are individually underwritten, risk-rated, approved, and monitored. Responsibility and accountability for adherence to underwriting policies and accurate risk ratings lies in each portfolio segment. For the consumer real estate and consumer and other portfolio segments, the risk management process focuses on managing customers who become delinquent in their payments. For the other portfolio segments, the risk management process focuses on underwriting new business and, on an ongoing basis, monitoring the credit of the portfolios, including a third party review of the largest credits on an annual basis or more frequently as needed. To ensure problem credits are identified on a timely basis, several specific portfolio reviews occur periodically to assess the larger adversely rated credits for proper risk rating and accrual status. Credit quality and trends in the loan portfolio segments are measured and monitored regularly. Detailed reports, by product, collateral, accrual status, etc., are reviewed by the Senior Credit Officer and the Directors Loan Committee. The allowance for loan losses is a valuation reserve allowance established through provisions for loan losses charged against income. The allowance for loan losses, which is evaluated quarterly, is maintained at a level that management deems sufficient to absorb probable losses inherent in the loan portfolio. Loans deemed to be uncollectible are charged against the allowance for loan losses, while recoveries of previously charged-off amounts are credited to the allowance for loan losses. The allowance for loan losses is comprised of specific valuation allowances for loans evaluated individually for impairment and general allocations for pools of homogeneous loans with similar risk characteristics and trends. The allowance for loan losses related to specific loans is based on management's estimate of potential losses on impaired loans as determined by (1) the present value of expected future cash flows; (2) the fair value of collateral if the loan is determined to be collateral dependent or (3) the loan's observable market price. The Company's homogeneous loan pools include commercial real estate loans, consumer real estate loans, construction and land development loans, commercial and industrial loans, and consumer and other loans. The general allocations to these loan pools are based on the historical loss rates for specific loan types and the internal risk grade, if applicable, adjusted for both internal and external qualitative risk factors. The qualitative factors considered by management include, among other factors, (1) changes in local and national economic conditions; (2) changes in asset quality; (3) changes in loan portfolio volume; (4) the composition and concentrations of credit; (5) the impact of competition on loan structuring and pricing; (6) the impact of interest rate changes on portfolio risk and (7) effectiveness of the Company's loan policies, procedures and internal controls. The total allowance established for each homogeneous loan pool represents the product of the historical loss ratio adjusted for qualitative factors and the total dollar amount of the loans in the pool. The composition of loans by loan classification for impaired and performing loan status at June 30, 2018 and December 31, 2017 , is summarized in the tables below (in thousands): June 30, 2018 Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Performing loans $ 726,356 $ 347,893 $ 173,194 $ 278,431 $ 13,698 $ 1,539,572 Impaired loans 1,034 996 547 519 109 3,205 727,390 348,889 173,741 278,950 13,807 1,542,777 PCI loans 18,474 6,987 5,690 821 686 32,658 Total $ 745,864 $ 355,876 $ 179,431 $ 279,771 $ 14,493 $ 1,575,435 December 31, 2017 Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Performing loans $ 624,638 $ 284,585 $ 129,742 $ 237,016 $ 11,842 $ 1,287,823 Impaired loans 447 1,422 547 213 12 2,641 625,085 286,007 130,289 237,229 11,854 1,290,464 PCI loans 17,903 7,450 5,120 858 1,463 32,794 Total loans $ 642,988 $ 293,457 $ 135,409 $ 238,087 $ 13,317 $ 1,323,258 The following tables show the allowance for loan losses allocation by loan classification for impaired, PCI, and performing loans as of June 30, 2018 and December 31, 2017 (in thousands): June 30, 2018 Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Performing loans $ 3,116 $ 1,491 $ 744 $ 1,145 $ 224 $ 6,720 PCI loans 19 — — — — 19 Impaired loans — 37 — 222 76 335 Total $ 3,135 $ 1,528 $ 744 $ 1,367 $ 300 $ 7,074 December 31, 2017 Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Performing loans $ 2,444 $ 1,340 $ 521 $ 890 $ 204 $ 5,399 PCI loans 16 — — — — 16 Impaired loans 5 256 — 172 12 445 Total $ 2,465 $ 1,596 $ 521 $ 1,062 $ 216 $ 5,860 The following tables detail the changes in the allowance for loan losses for the six month period ending June 30, 2018 and year ending December 31, 2017 , by loan classification (in thousands): June 30, 2018 Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Beginning balance $ 2,465 $ 1,596 $ 521 $ 1,062 $ 216 $ 5,860 Loans charged off (38 ) (25 ) — (78 ) (101 ) (242 ) Recoveries of loans charged off — 50 5 56 40 151 Provision (reallocation) charged to expense 708 (93 ) 218 327 145 1,305 Ending balance $ 3,135 $ 1,528 $ 744 $ 1,367 $ 300 $ 7,074 December 31, 2017 Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Beginning balance $ 2,369 $ 1,382 $ 717 $ 520 $ 117 $ 5,105 Loans charged off — (111 ) — (24 ) (141 ) (276 ) Recoveries of charge-offs 8 99 13 67 61 248 Provision (reallocation) charged to expense 88 226 (209 ) 499 179 783 Ending balance $ 2,465 $ 1,596 $ 521 $ 1,062 $ 216 $ 5,860 A description of the general characteristics of the risk grades used by the Company is as follows: Pass: Loans in this risk category involve borrowers of acceptable-to-strong credit quality and risk who have the apparent ability to satisfy their loan obligations. Loans in this risk grade would possess sufficient mitigating factors, such as adequate collateral or strong guarantors possessing the capacity to repay the debt if required, for any weakness that may exist. Special Mention: Loans in this risk grade are the equivalent of the regulatory definition of "Other Assets Especially Mentioned" classification. Loans in this category possess some credit deficiency or potential weakness, which requires a high level of management attention. Potential weaknesses include declining trends in operating earnings and cash flows and /or reliance on the secondary source of repayment. If left uncorrected, these potential weaknesses may result in noticeable deterioration of the repayment prospects for the asset or in the Company's credit position. Substandard: Loans in this risk grade are inadequately protected by the borrower's current financial condition and payment capability or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the orderly repayment of debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful: Loans in this risk grade have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or orderly repayment in full, on the basis of current existing facts, conditions and values, highly questionable and improbable. Possibility of loss is extremely high, but because of certain important and reasonably specific factors that may work to the advantage and strengthening of the exposure, its classification as an estimated loss is deferred until its more exact status may be determined. Uncollectible: Loans in this risk grade are considered to be non-collectible and of such little value that their continuance as bankable assets is not warranted. This does not mean the loan has absolutely no recovery value, but rather it is neither practical nor desirable to defer writing off the loan, even though partial recovery may be obtained in the future. Charge-offs against the allowance for loan losses are taken in the period in which the loan becomes uncollectible. Consequently, the Company typically does not maintain a recorded investment in loans within this category. The following tables outline the amount of each loan classification and the amount categorized into each risk rating as of June 30, 2018 and December 31, 2017 (in thousands): June 30, 2018 Non PCI Loans Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Pass $ 724,763 $ 343,407 $ 172,972 $ 277,384 $ 13,184 $ 1,531,710 Watch 1,604 3,168 62 1,035 123 5,992 Special mention — 949 160 35 363 1,507 Substandard 1,023 1,365 547 483 111 3,529 Doubtful — — — 13 26 39 Total $ 727,390 $ 348,889 $ 173,741 $ 278,950 $ 13,807 $ 1,542,777 PCI Loans Pass $ 14,494 $ 4,558 $ 3,973 $ 210 $ 565 $ 23,800 Watch 1,513 898 653 2 18 3,084 Special mention 1,393 575 716 153 17 2,854 Substandard 1,074 956 348 456 86 2,920 Doubtful — — — — — — Total $ 18,474 $ 6,987 $ 5,690 $ 821 $ 686 $ 32,658 Total loans $ 745,864 $ 355,876 $ 179,431 $ 279,771 $ 14,493 $ 1,575,435 December 31, 2017 Non PCI Loans Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Pass $ 616,028 $ 279,464 $ 129,359 $ 233,942 $ 11,624 $ 1,270,417 Watch 7,673 2,543 383 3,007 62 13,668 Special mention 1,006 2,627 — 64 155 3,852 Substandard 378 1,159 547 157 — 2,241 Doubtful — 214 — 59 13 286 Total $ 625,085 $ 286,007 $ 130,289 $ 237,229 $ 11,854 $ 1,290,464 PCI Loans Pass $ 14,386 $ 4,151 $ 4,134 $ 68 $ 819 $ 23,558 Watch 261 1,345 649 120 262 2,637 Special mention — 456 — 58 24 538 Substandard 3,084 1,192 337 588 107 5,308 Doubtful 172 306 — 24 251 753 Total $ 17,903 $ 7,450 $ 5,120 $ 858 $ 1,463 $ 32,794 Total loans $ 642,988 $ 293,457 $ 135,409 $ 238,087 $ 13,317 $ 1,323,258 Past Due Loans: A loan is considered past due if any required principal and interest payments have not been received as of the date such payments were required to be made under the terms of the loan agreement. Generally, management places a loan on nonaccrual when there is a clear indicator that the borrower’s cash flow may not be sufficient to meet payments as they become due, which is generally when a loan is 90 days past due. The following tables present the aging of the recorded investment in loans as of June 30, 2018 and December 31, 2017 (in thousands): June 30, 2018 30-89 Days Past Due and Accruing Past Due 90 Days or More and Accruing Nonaccrual Total Past Due and NonAccrual PCI Loans Current Loans Total Loans Commercial real estate $ 2,628 $ 82 $ 6 $ 2,716 $ 18,474 $ 724,674 $ 745,864 Consumer real estate 701 76 463 1,240 6,987 347,649 355,876 Construction and land development 403 338 547 1,288 5,690 172,453 179,431 Commercial and industrial 647 113 430 1,190 821 277,760 279,771 Consumer and other 189 58 92 339 686 13,468 14,493 Total $ 4,568 $ 667 $ 1,538 $ 6,773 $ 32,658 $ 1,536,004 $ 1,575,435 December 31, 2017 30-89 Days Past Due and Accruing Past Due 90 Days or More and Accruing Nonaccrual Total Past Due and NonAccrual PCI Loans Current Loans Total Loans Commercial real estate $ 517 $ 728 $ 128 $ 1,373 $ 17,903 $ 623,712 $ 642,988 Consumer real estate 963 33 991 1,987 7,450 284,020 293,457 Construction and land development 65 326 547 938 5,120 129,351 135,409 Commercial and industrial 286 131 85 502 858 236,727 238,087 Consumer and other 165 291 13 469 1,463 11,385 13,317 Total $ 1,996 $ 1,509 $ 1,764 $ 5,269 $ 32,794 $ 1,285,195 $ 1,323,258 Impaired Loans: The following is an analysis of the impaired loan portfolio, excluding PCI loans, detailing the related allowance recorded as of June 30, 2018 and December 31, 2017 (in thousands): For the six months ended At June 30, 2018 June 30, 2018 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Impaired loans without a valuation allowance: Commercial real estate $ 1,034 $ 1,043 $ — $ 670 $ 15 Consumer real estate 793 823 — 699 12 Construction and land development 547 547 — 547 — Commercial and industrial 81 83 — 58 3 Consumer and other 16 16 — 5 — 2,471 2,512 — 1,979 30 Impaired loans with a valuation allowance: Commercial real estate — — — 8 — Consumer real estate 203 216 37 642 11 Construction and land development — — — — — Commercial and industrial 438 440 222 257 5 Consumer and other 93 95 76 72 2 734 751 335 979 18 PCI loans: Commercial real estate 27 127 19 5 3 Total impaired loans $ 3,232 $ 3,390 $ 354 $ 2,963 $ 51 For the year ended At December 31, 2017 December 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Impaired loans without a valuation allowance: Commercial real estate $ 424 $ 454 $ — $ 204 $ 44 Consumer real estate 415 420 — 401 16 Construction and land development 547 547 — 628 — Commercial and industrial 41 41 — 44 3 Consumer and other — — — — — 1,427 1,462 — 1,277 63 Impaired loans with a valuation allowance: Commercial real estate 23 23 5 5 1 Consumer real estate 1,007 1,033 256 601 38 Construction and land development — — — — — Commercial and industrial 172 172 172 117 10 Consumer and other 12 13 12 2 1 1,214 1,241 445 725 50 PCI loans: Commercial real estate 16 123 16 3 16 Total impaired loans $ 2,657 $ 2,826 $ 461 $ 2,005 $ 129 Troubled Debt Restructurings: At June 30, 2018 and December 31, 2017 , impaired loans included loans that were classified as Troubled Debt Restructurings ("TDRs"). The restructuring of a loan is considered a TDR if both (i) the borrower is experiencing financial difficulties and (ii) the creditor has granted a concession. In assessing whether or not a borrower is experiencing financial difficulties, the Company considers information currently available regarding the financial condition of the borrower. This information includes, but is not limited to, whether (i) the debtor is currently in payment default on any of its debt; (ii) a payment default is probable in the foreseeable future without the modification; (iii) the debtor has declared or is in the process of declaring bankruptcy; and (iv) the debtor's projected cash flow is sufficient to satisfy contractual payments due under the original terms of the loan without a modification. The Company considers all aspects of the modification to loan terms to determine whether or not a concession has been granted to the borrower. Key factors considered by the Company include the debtor's ability to access funds at a market rate for debt with similar risk characteristics, the significance of the modification relative to unpaid principal balance or collateral value of the debt, and the significance of a delay in the timing of payments relative to the original contractual terms of the loan. The most common concessions granted by the Company generally include one or more modifications to the terms of the debt, such as (i) a reduction in the interest rate for the remaining life of the debt; (ii) an extension of the maturity date at an interest rate lower than the current market rate for new debt with similar risk; (iii) a temporary period of interest-only payments; and (iv) a reduction in the contractual payment amount for either a short period or remaining term of the loan. As of June 30, 2018 and December 31, 2017 , management had approximately, $660 thousand and $41 thousand, respectively, in loans that met the criteria for restructured, none of which were on nonaccrual. A loan is placed back on accrual status when both principal and interest are current and it is probable that management will be able to collect all amounts due (both principal and interest) according to the terms of the loan agreement. There was one commercial real estate loan for approximately $622 thousand modified as troubled debt restructurings during the six month period ended June 30, 2018. There were no loans that were modified as troubled debt restructurings during the twelve month period ended December 31, 2017. There were no loans that were modified as troubled debt restructurings during the past three months and for which there was a subsequent payment default. Foreclosure Proceedings and Balances : As of June 30, 2018 the Company had $1.14 million in residential real estate included in foreclosed assets and there were no consumer mortgage loans collateralized by residential real estate property that were in the process of foreclosure. Purchased Credit Impaired Loans: The Company has acquired loans which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of those loans as of is as follows (in thousands): June 30, 2018 December 31, 2017 Commercial real estate $ 25,700 $ 23,366 Consumer real estate 9,620 10,764 Construction and land development 6,793 6,285 Commercial and industrial 2,973 1,452 Consumer and other 1,014 1,710 Total loans 46,100 43,577 Less remaining purchase discount (13,442 ) (10,783 ) Total loans, net of purchase discount 32,658 32,794 Less: Allowance for loan losses (19 ) (16 ) Carrying amount, net of allowance $ 32,639 $ 32,778 Activity related to the accretable yield on loans acquired with deteriorated credit quality is as follows for the three and six months period ended June 30, 2018 and 2017 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Accretable yield, beginning of period $ 7,780 $ 8,482 $ 9,287 $ 8,950 Additions 1,292 — 1,292 — Accretion income (1,928 ) (973 ) (3,029 ) (1,670 ) Reclassification to accretable 120 366 382 610 Other changes, net (58 ) 600 (726 ) 585 Accretable yield $ 7,206 $ 8,475 $ 7,206 $ 8,475 Purchased credit impaired loans acquired from Southern Community Bank during the three and six months period ended June 30, 2018 for which it was probable at acquisition that all contractually required payments would not be collected are as follows (in thousands): Three and Six Months Ended June 30, 2018 Contractual principal and interest at acquisition $ 15,133 Nonaccretable difference 5,302 Expected cash flows at acquisition 9,831 Accretable yield 1,292 Fair value of purchased credit impaired loans $ 8,539 | Note 4. Loans and Allowance for Loan Losses Portfolio Segmentation: At December 31, 2017 and 2016 , loans consisted of the following (in thousands): December 31, 2017 December 31, 2016 PCI All Other Total PCI All Other Total Commercial real estate $ 17,903 $ 625,085 $ 642,988 $ 14,943 $ 400,265 $ 415,208 Consumer real estate 7,450 286,007 293,457 9,004 178,798 187,802 Construction and land development 5,120 130,289 135,409 1,678 116,191 117,869 Commercial and industrial 858 237,229 238,087 1,568 83,454 85,022 Consumer and other 1,463 11,854 13,317 — 7,475 7,475 Total loans 32,794 1,290,464 1,323,258 27,193 786,183 813,376 Less: Allowance for loan losses (16 ) (5,844 ) (5,860 ) — (5,105 ) (5,105 ) Loans, net $ 32,778 $ 1,284,620 $ 1,317,398 $ 27,193 $ 781,078 $ 808,271 For purposes of the disclosures required pursuant to the adoption of ASC 310, the loan portfolio was disaggregated into segments. A portfolio segment is defined as the level at which an entity develops and documents a systematic method for determining its allowance for credit losses. There are five loan portfolio segments that include commercial real estate, consumer real estate, construction and land development, commercial and industrial, and consumer and other. The following describe risk characteristics relevant to each of the portfolio segments: Commercial Real Estate: Commercial real estate loans include owner-occupied commercial real estate loans and loans secured by income-producing properties. Owner-occupied commercial real estate loans to operating businesses are long-term financing of land and buildings. These loans are repaid by cash flow generated from the business operation. Real estate loans for income-producing properties such as apartment buildings, office and industrial buildings, and retail shopping centers are repaid from rent income derived from the properties. Loans within this portfolio segment are particularly sensitive to the valuation of real estate. Consumer Real Estate: Consumer real estate loans include real estate loans secured by first liens, second liens, or open end real estate loans, such as home equity lines. These are repaid by various means such as a borrower's income, sale of the property, or rental income derived from the property. One to four family first mortgage loans are repaid by various means such as a borrower's income, sale of the property, or rental income derived from the property. Loans within this portfolio segment are particularly sensitive to the valuation of real estate. Construction and Land Development: Loans for real estate construction and development are repaid through cash flow related to the operations, sale or refinance of the underlying property. This portfolio segment includes extensions of credit to real estate developers or investors where repayment is dependent on the sale of the real estate or income generated from the real estate collateral. Loans within this portfolio segment are particularly sensitive to the valuation of real estate. Commercial and Industrial: The commercial and industrial loan portfolio segment includes commercial, financial, and agricultural loans. These loans include those loans to commercial customers for use in normal business operations to finance working capital needs, equipment purchases, or expansion projects. Loans are repaid by business cash flows. Collection risk in this portfolio is driven by the creditworthiness of the underlying borrower, particularly cash flows from the customers' business operations. Consumer and Other: The consumer loan portfolio segment includes direct consumer installment loans, overdrafts and other revolving credit loans, and educational loans. Loans in this portfolio are sensitive to unemployment and other key consumer economic measures. Credit Risk Management: The Company employs a credit risk management process with defined policies, accountability and routine reporting to manage credit risk in the loan portfolio segments. Credit risk management is guided by credit policies that provide for a consistent and prudent approach to underwriting and approvals of credits. Within the Credit Policy, procedures exist that elevate the approval requirements as credits become larger and more complex. All loans are individually underwritten, risk-rated, approved, and monitored. Responsibility and accountability for adherence to underwriting policies and accurate risk ratings lies in each portfolio segment. For the consumer real estate and consumer and other portfolio segments, the risk management process focuses on managing customers who become delinquent in their payments. For the other portfolio segments, the risk management process focuses on underwriting new business and, on an ongoing basis, monitoring the credit of the portfolios, including a third party review of the largest credits on an annual basis or more frequently as needed. To ensure problem credits are identified on a timely basis, several specific portfolio reviews occur periodically to assess the larger adversely rated credits for proper risk rating and accrual status. Credit quality and trends in the loan portfolio segments are measured and monitored regularly. Detailed reports, by product, collateral, accrual status, etc., are reviewed by the Senior Credit Officer and the Directors Loan Committee. The allowance for loan losses is a valuation reserve allowance established through provisions for loan losses charged against income. The allowance for loan losses, which is evaluated quarterly, is maintained at a level that management deems sufficient to absorb probable losses inherent in the loan portfolio. Loans deemed to be uncollectible are charged against the allowance for loan losses, while recoveries of previously charged-off amounts are credited to the allowance for loan losses. The allowance for loan losses is comprised of specific valuation allowances for loans evaluated individually for impairment and general allocations for pools of homogeneous loans with similar risk characteristics and trends. The allowance for loan losses related to specific loans is based on management's estimate of potential losses on impaired loans as determined by (1) the present value of expected future cash flows; (2) the fair value of collateral if the loan is determined to be collateral dependent or (3) the loan's observable market price. The Company's homogeneous loan pools include commercial real estate loans, consumer real estate loans, construction and land development loans, commercial and industrial loans, and consumer and other loans. The general allocations to these loan pools are based on the historical loss rates for specific loan types and the internal risk grade, if applicable, adjusted for both internal and external qualitative risk factors. The qualitative factors considered by management include, among other factors, (1) changes in local and national economic conditions; (2) changes in asset quality; (3) changes in loan portfolio volume; (4) the composition and concentrations of credit; (5) the impact of competition on loan structuring and pricing; (6) the impact of interest rate changes on portfolio risk and (7) effectiveness of the Company's loan policies, procedures and internal controls. The total allowance established for each homogeneous loan pool represents the product of the historical loss ratio adjusted for qualitative factors and the total dollar amount of the loans in the pool. The composition of loans by loan classification for impaired and performing loan status at December 31, 2017 and 2016 , is summarized in the tables below (amounts in thousands): December 31, 2017 Commercial Consumer Construction Commercial Consumer Total Performing loans $ 624,638 $ 284,585 $ 129,742 $ 237,016 $ 11,842 $ 1,287,823 Impaired loans 447 1,422 547 213 12 2,641 625,085 286,007 130,289 237,229 11,854 1,290,464 PCI loans 17,903 7,450 5,120 858 1,463 32,794 Total $ 642,988 $ 293,457 $ 135,409 $ 238,087 $ 13,317 $ 1,323,258 December 31, 2016 Commercial Consumer Construction Commercial Consumer Total Performing loans $ 400,146 $ 177,977 $ 115,326 $ 83,244 $ 7,475 $ 784,168 Impaired loans 119 821 865 210 — 2,015 400,265 178,798 116,191 83,454 7,475 786,183 PCI loans 14,943 9,004 1,678 1,568 — 27,193 Total loans $ 415,208 $ 187,802 $ 117,869 $ 85,022 $ 7,475 $ 813,376 The following tables show the allowance for loan losses allocation by loan classification for impaired and performing loans as of December 31, 2017 and 2016 (amounts in thousands): December 31, 2017 Construction Commercial Consumer Commercial Consumer and Land and and Real Estate Real Estate Development Industrial Other Total Performing loans $ 2,444 $ 1,340 $ 521 $ 890 $ 204 $ 5,399 PCI loans 16 — — — — 16 Impaired loans 5 256 — 172 12 445 Total $ 2,465 $ 1,596 $ 521 $ 1,062 $ 216 $ 5,860 December 31, 2016 Construction Commercial Consumer Commercial Consumer and Land and and Real Estate Real Estate Development Industrial Other Total Performing loans $ 2,369 $ 1,382 $ 717 $ 516 $ 117 $ 5,101 PCI Loans — — — — — — Impaired loans — — — 4 — 4 Total $ 2,369 $ 1,382 $ 717 $ 520 $ 117 $ 5,105 The following tables detail the changes in the allowance for loan losses for the year ending December 31, 2017 and December 31, 2016 , by loan classification (amounts in thousands): December 31, 2017 Commercial Consumer Construction Commercial Consumer Total Beginning balance $ 2,369 $ 1,382 $ 717 $ 520 $ 117 $ 5,105 Loans charged off — (111 ) — (24 ) (141 ) (276 ) Recoveries of loans charged off 8 99 13 67 61 248 Provision (reallocation) charged to operating expense 88 226 (209 ) 499 179 783 Ending balance $ 2,465 $ 1,596 $ 521 $ 1,062 $ 216 $ 5,860 December 31, 2016 Commercial Consumer Construction Commercial Consumer Total Beginning balance $ 1,906 $ 1,015 $ 627 $ 777 $ 29 $ 4,354 Loans charged off — (102 ) (14 ) (35 ) (155 ) (306 ) Recoveries of loans charged off 45 76 22 58 68 269 Provision (reallocation) charged to operating expense 418 393 82 (280 ) 175 788 Ending balance $ 2,369 $ 1,382 $ 717 $ 520 $ 117 $ 5,105 A description of the general characteristics of the risk grades used by the Company is as follows: Pass: Loans in this risk category involve borrowers of acceptable-to-strong credit quality and risk who have the apparent ability to satisfy their loan obligations. Loans in this risk grade would possess sufficient mitigating factors, such as adequate collateral or strong guarantors possessing the capacity to repay the debt if required, for any weakness that may exist. Watch: Loans in this risk category involve borrowers that exhibit characteristics, or are operating under conditions that, if not successfully mitigated as planned, have a reasonable risk of resulting in a downgrade within the next six to twelve months. Loans may remain in this risk category for six months and then are either upgraded or downgraded upon subsequent evaluation. Special Mention: Loans in this risk grade are the equivalent of the regulatory definition of "Other Assets Especially Mentioned" classification. Loans in this category possess some credit deficiency or potential weakness, which requires a high level of management attention. Potential weaknesses include declining trends in operating earnings and cash flows and /or reliance on the secondary source of repayment. If left uncorrected, these potential weaknesses may result in noticeable deterioration of the repayment prospects for the asset or in the Company's credit position. Substandard: Loans in this risk grade are inadequately protected by the borrower's current financial condition and payment capability or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the orderly repayment of debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful: Loans in this risk grade have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or orderly repayment in full, on the basis of current existing facts, conditions and values, highly questionable and improbable. Possibility of loss is extremely high, but because of certain important and reasonably specific factors that may work to the advantage and strengthening of the exposure, its classification as an estimated loss is deferred until its more exact status may be determined. Uncollectible: Loans in this risk grade are considered to be non-collectible and of such little value that their continuance as bankable assets is not warranted. This does not mean the loan has absolutely no recovery value, but rather it is neither practical nor desirable to defer writing off the loan, even though partial recovery may be obtained in the future. Charge-offs against the allowance for loan losses are taken in the period in which the loan becomes uncollectible. Consequently, the Company typically does not maintain a recorded investment in loans within this category. The following tables outline the amount of each loan classification and the amount categorized into each risk rating as of December 31, 2017 and 2016 (amounts in thousands): Non PCI Loans December 31, 2017 Commercial Consumer Construction Commercial Consumer Total Pass $ 616,028 $ 279,464 $ 129,359 $ 233,942 $ 11,624 $ 1,270,417 Watch 7,673 2,543 383 3,007 62 13,668 Special mention 1,006 2,627 — 64 155 3,852 Substandard 378 1,159 547 157 — 2,241 Doubtful — 214 — 59 13 286 Total $ 625,085 $ 286,007 $ 130,289 $ 237,229 $ 11,854 $ 1,290,464 PCI Loans December 31, 2017 Commercial Consumer Construction Commercial Consumer Total Pass $ 14,386 $ 4,151 $ 4,134 $ 68 $ 819 $ 23,558 Watch 261 1,345 649 120 262 2,637 Special mention — 456 — 58 24 538 Substandard 3,084 1,192 337 588 107 5,308 Doubtful 172 306 — 24 251 753 Total $ 17,903 $ 7,450 $ 5,120 $ 858 $ 1,463 $ 32,794 Total loans $ 642,988 $ 293,457 $ 135,409 $ 238,087 $ 13,317 $ 1,323,258 Non PCI Loans December 31, 2016 Commercial Consumer Construction Commercial Consumer Total Pass $ 399,505 $ 177,466 $ 115,237 $ 82,992 $ 7,238 $ 782,438 Watch 640 550 89 252 — 1,531 Special mention — 104 — — 237 341 Substandard 120 678 865 210 — 1,873 Doubtful — — — — — — Total $ 400,265 $ 178,798 $ 116,191 $ 83,454 $ 7,475 $ 786,183 PCI Loans December 31, 2016 Commercial Consumer Construction Commercial Consumer Total Pass $ 11,836 $ 6,811 $ 1,019 $ 1,507 $ — $ 21,173 Watch 1,045 1,577 645 22 — 3,289 Special mention — — — 12 — 12 Substandard 2,062 616 14 — — 2,692 Doubtful — — — 27 — 27 Total $ 14,943 $ 9,004 $ 1,678 $ 1,568 $ — $ 27,193 Total loans $ 415,208 $ 187,802 $ 117,869 $ 85,022 $ 7,475 $ 813,376 Past Due Loans: A loan is considered past due if any required principal and interest payments have not been received as of the date such payments were required to be made under the terms of the loan agreement. Generally, management places a loan on nonaccrual when there is a clear indication that the borrower’s cash flow may not be sufficient to meet payments as they become due, which is generally when a loan is 90 days past due. The following tables present the aging of the recorded investment in loans and leases as of December 31, 2017 and 2016 (amounts in thousands): December 31, 2017 30-89 Days Past Due 90 Nonaccrual Total PCI Loans Current Total Commercial real estate $ 517 $ 728 $ 128 $ 1,373 $ 17,903 $ 623,712 $ 642,988 Consumer real estate 963 33 991 1,987 7,450 284,020 293,457 Construction and land development 65 326 547 938 5,120 129,351 135,409 Commercial and industrial 286 131 85 502 858 236,727 238,087 Consumer and other 165 291 13 469 1,463 11,385 13,317 Total $ 1,996 $ 1,509 $ 1,764 $ 5,269 $ 32,794 $ 1,285,195 $ 1,323,258 December 31, 2016 30-89 Days Past Due 90 Nonaccrual Total PCI Current Total Commercial real estate $ 395 $ — $ — $ 395 $ 14,943 $ 399,870 $ 415,208 Consumer real estate 695 699 386 1,780 9,004 177,018 187,802 Construction and land development 690 — 865 1,555 1,678 114,636 117,869 Commercial and industrial 257 — 164 421 1,568 83,033 85,022 Consumer and other 17 — — 17 — 7,458 7,475 Total $ 2,054 $ 699 $ 1,415 $ 4,168 $ 27,193 $ 782,015 $ 813,376 Impaired Loans: A loan held for investment is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due (both principal and interest) according to the terms of the loan agreement. The following is an analysis of the impaired loan portfolio detailing the related allowance recorded as of and for the years ended December 31, 2017 and 2016 (amounts in thousands): For the year ended At December 31, 2017 December 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Impaired loans without a valuation allowance: Non PCI Loans: Commercial real estate $ 424 $ 454 $ — $ 204 $ 44 Consumer real estate 415 420 — 401 16 Construction and land development 547 547 — 628 — Commercial and industrial 41 41 — 44 3 Consumer and other — — — — — 1,427 1,462 — 1,277 63 PCI loans: None in 2017 Impaired loans with a valuation allowance: Non PCI Loans: Commercial real estate 23 23 5 5 1 Consumer real estate 1,007 1,033 256 601 38 Construction and land development — — — — — Commercial and industrial 172 172 172 117 10 Consumer and other 12 13 12 2 1 1,214 1,241 445 725 50 PCI loans: Commercial real estate 16 123 16 3 16 Total impaired loans $ 2,657 $ 2,826 $ 461 $ 2,005 $ 129 For the year ended At December 31, 2016 December 31, 2016 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Impaired loans without a valuation allowance: Non PCI Loans: Commercial real estate $ 119 $ 119 $ — $ 1,311 $ 73 Consumer real estate 821 849 — 2,334 100 Construction and land development 865 865 — 967 3 Commercial and industrial 46 46 — 47 4 Consumer and other — — — — — 1,851 1,879 — 4,659 180 PCI loans: None in 2016 Impaired loans with a valuation allowance: Non PCI Loans: Commercial real estate — — — — — Consumer real estate — — — — — Construction and land development — — — — — Commercial and industrial 164 243 4 306 70 Consumer and other — — — — — 164 243 4 306 70 PCI loans: None in 2016 Total impaired loans $ 2,015 $ 2,122 $ 4 $ 4,965 $ 250 Troubled Debt Restructurings: At December 31, 2017 and 2016 , impaired loans included loans that were classified as Troubled Debt Restructurings ("TDRs"). The restructuring of a loan is considered a TDR if both (i) the borrower is experiencing financial difficulties and (ii) the creditor has granted a concession. In assessing whether or not a borrower is experiencing financial difficulties, the Company considers information currently available regarding the financial condition of the borrower. This information includes, but is not limited to, whether (i) the debtor is currently in payment default on any of its debt; (ii) a payment default is probable in the foreseeable future without the modification; (iii) the debtor has declared or is in the process of declaring bankruptcy; and (iv) the debtor's projected cash flow is sufficient to satisfy contractual payments due under the original terms of the loan without a modification. The Company considers all aspects of the modification to loan terms to determine whether or not a concession has been granted to the borrower. Key factors considered by the Company include the debtor's ability to access funds at a market rate for debt with similar risk characteristics, the significance of the modification relative to unpaid principal balance or collateral value of the debt, and the significance of a delay in the timing of payments relative to the original contractual terms of the loan. The most common concessions granted by the Company generally include one or more modifications to the terms of the debt, such as (i) a reduction in the interest rate for the remaining life of the debt; (ii) an extension of the maturity date at an interest rate lower than the current market rate for new debt with similar risk; (iii) a temporary period of interest-only payments; and (iv) a reduction in the contractual payment amount for either a short period or remaining term of the loan. As of December 31, 2017 and 2016 , management had approximately $41,000 and $608,000 , respectively, in loans that met the criteria for restructured. No restructured loans were on nonaccrual as of December 31, 2017. There were $442,000 restructured loans on nonaccrual at December 31, 2016. A loan is placed back on accrual status when both principal and interest are current and it is probable that management will be able to collect all amounts due (both principal and interest) according to the terms of the loan agreement. There were no loans modified as troubled debt restructurings during the year ended December 31, 2017. The following table presents a summary of loans that were modified as troubled debt restructurings during the year ended December 31, 2016 (amounts in thousands): December 31, 2016 Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Construction and land development 1 $ 278 $ 278 Commercial and industrial 1 164 164 There were no loans that were modified as troubled debt restructurings during the past twelve months and for which there was a subsequent payment default. Purchased Credit Impaired Loans: The Company has acquired loans which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of those loans at for the years ended December 31, 2017 and 2016 is as follows (in thousands): 2017 2016 Commercial real estate $ 23,366 $ 18,473 Consumer real estate 10,764 12,111 Construction and land development 6,285 2,553 Commercial and industrial 1,452 2,482 Consumer and other 1,710 — Total loans $ 43,577 $ 35,619 Less remaining purchase discount (10,783 ) (8,426 ) Total, gross 32,794 27,193 Less: Allowance for loan losses (16 ) — Carrying amount, net of allowance $ 32,778 $ 27,193 The following is a summary of the accretable discount on acquired loans for the years ended December 31, 2017 and 2016 (in thousands): 2017 2016 Accretable yield, beginning of period $ 8,950 $ 10,217 Additions 2,581 — Accretion income (4,217 ) (2,588 ) Reclassification from nonaccretable 926 1,585 Other changes, net 1,047 (264 ) Accretable yield, end of period $ 9,287 $ 8,950 The Company increased the allowance for loan losses on purchase credit impaired loans in the amount of approximately $16,000 during the year ended December 31, 2017 and no increases were made during the year ended December 31, 2016 . Purchased credit impaired loans acquired from Capstone during the year ended December 31, 2017 for which it was probable at acquisition that all contractually required payments would not be collected are as follows (in thousands): 2017 Contractual principal and interest at acquisition $ 25,288 Nonaccretable difference 5,725 Expected cash flows at acquisition 19,563 Accretable yield 2,581 Basis in PCI loans at acquisition-estimated fair value $ 16,982 Related Party Loans: In the ordinary course of business, the Company has granted loans to certain related parties, including directors, executive officers, and their affiliates. The interest rates on these loans were substantially the same as rates prevailing at the time of the transaction and repayment terms are customary for the type of loan. A summary of activity in loans to related parties is as follows (in thousands): 2017 2016 Balance, beginning of year $ 12,999 $ 10,851 Disbursements 14,533 855 Removal of credit lines — (1,153 ) Changes in ownership — 4,830 Repayments (9,202 ) (2,384 ) Balance, end of year $ 18,330 $ 12,999 At December 31, 2017 , the Company had pre-approved but unused lines of credit totaling approximately $5,833,000 to related parties. |
Premises and Equipment (FY)
Premises and Equipment (FY) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Note 5. Premises and Equipment A summary of premises and equipment at December 31, 2017 and 2016 , is as follows (in thousands): 2017 2016 Land and land improvements $ 10,854 $ 8,354 Building and leasehold improvements 28,576 18,507 Furniture, fixtures and equipment 10,073 7,043 Construction in progress 1,495 2,789 Total, gross 50,998 36,693 Accumulated depreciation (7,998 ) (6,157 ) Total, net $ 43,000 $ 30,536 At December 31, 2017 management estimates the cost necessary to complete the construction in progress will be approximately $3.04 million . The Company leases several branch locations and also has three ground leases under non-cancelable operating lease agreements. The leases expire between January 2018 and November 2023. Lease expense under the leases was $721,534 and $728,004 in 2017 and 2016 , respectively. At December 31, 2017 , the remaining minimum lease payments relating to these leases were as follows (in thousands): 2018 $ 608 2019 500 2020 487 2021 344 2022 124 2023 40 Depreciation expense was $1,841,524 and $1,435,090 for the years ended December 31, 2017 and 2016 , respectively. |
Deposits (FY)
Deposits (FY) | 12 Months Ended |
Dec. 31, 2017 | |
Deposits [Abstract] | |
Deposits | Note 6. Deposits The aggregate amount of time deposits in denominations of $250,000 or more was approximately $171,529,000 and $123,053,000 at December 31, 2017 and 2016 , respectively. At December 31, 2017 , the scheduled maturities of time deposits are as follows (in thousands): 2018 $ 290,093 2019 84,906 2020 36,170 2021 14,353 2022 16,039 Thereafter 120 Total $ 441,681 As of December 31, 2017 and 2016, there was a fair value adjustment of $1,092,456 and $303,981 , respectively, to time deposits as a result of business combinations. At December 31, 2017 and 2016 , the Company had $155,000 and $76,380 , respectively, of deposit accounts in overdraft status that have been reclassified to loans on the accompanying consolidated balance sheets. From time to time, the Company engages in deposit transactions with its directors, executive officers and their related interests (collectively referred to as "related parties"). Such deposits are made in the ordinary course of business and on substantially the same terms as those for comparable transactions prevailing at the time and do not present other unfavorable features. The total amount of related party deposits was $16.7 million and $15.1 million at December 31, 2017 and 2016 , respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (FY) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 7. Goodwill and Intangible Assets Goodwill and intangible assets Past business combinations have created $42,873,689 in goodwill for the Company. Finite lived intangible assets of the Company represent a core deposit premium recorded upon the purchase of certain assets and liabilities from other financial institutions. The Company reviews the carrying value of this intangible on an annual basis and on an interim basis if certain events or circumstances indicate that an impairment loss may have been incurred. Management has determined that no impairment has occurred on this asset. The following table presents information about our core deposit premium intangible asset at December 31 (in thousands): 2017 2016 Gross Accumulated Gross Accumulated Amortized intangible asset: Core deposit intangible $ 8,589 $ 626 $ 2,750 $ 280 The following table presents information about aggregate amortization expense for 2017 and 2016 and for the succeeding fiscal years as follows (in thousands): 2017 2016 Aggregate amortization expense of core deposit premium intangible $ 346 $ 305 Estimated aggregate amortization expense of the core deposit premium intangible for the year ending December 31 (in thousands): 2018 $ 772 2019 772 2020 717 2021 670 2022 670 Thereafter 4,362 Total $ 7,963 |
Income Taxes (FY)
Income Taxes (FY) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 8. Income Taxes Income tax expense in the consolidated statements of income for the years ended December 31, 2017 and 2016 , includes the following (in thousands): 2017 2016 Current tax expense Federal $ 1,962 $ 2,503 State 428 531 Deferred tax expense (benefit) related to: Provision for loan losses (355 ) (320 ) Depreciation 374 203 Fair value adjustments 1,611 356 Nonaccrual interest (26 ) (26 ) Foreclosed real estate 55 117 Core deposit intangible (123 ) (117 ) Other 63 115 Change in tax rate 2,440 — Total income tax expense $ 6,429 $ 3,362 The income tax expense is different from the expected tax expense computed by multiplying income before income tax expense by the statutory income tax rates. The reasons for this difference are as follows (in thousands): 2017 2016 Federal income tax expense computed at the statutory rate $ 3,891 $ 3,115 State income taxes, net of federal tax benefit 491 393 Nondeductible acquisition expenses 364 — Change in tax rate 2,440 — Other (757 ) (146 ) Total income tax expense $ 6,429 $ 3,362 The components of the net deferred tax asset as of December 31, 2017 and 2016 , were as follows (in thousands): 2017 2016 Deferred tax assets: Allowance for loan losses $ 1,561 $ 1,932 Fair value adjustments 4,829 3,744 Foreclosed real estate 301 539 Deferred compensation 849 415 State net operating loss carryforward — — Other 849 561 Total deferred tax assets 8,389 7,191 Deferred tax liabilities: Accumulated depreciation 1,194 1,903 Core deposit intangible 1,945 946 Other 223 639 Total deferred tax liabilities 3,362 3,488 Net deferred tax asset $ 5,027 $ 3,703 The income tax returns of the Company for 2016 , 2015 , and 2014 are subject to examination by the federal and state taxing authorities, generally for three years after they were filed. |
Federal Home Loan Bank Advances
Federal Home Loan Bank Advances and Other Borrowings (FY) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Federal Home Loan Bank Advances and Other Borrowings | Note 9. Federal Home Loan Bank Advances and Other Borrowings Line of Credit: On August 28, 2015, the Company entered into a loan agreement (the “ Loan Agreement ”) with CapStar Bank (the “ Lender ”) providing for a revolving line of credit of up to $8,000,000 . The line of credit was paid in full in March 2016 after which the line matured on February 28, 2017. On October 31, 2017, the Company entered into a loan agreement (the “ Loan Agreement No. 2 ”) with CapStar Bank (the “ Lender ”) providing for a revolving line of credit of up to $15,000,000 . The Company may borrow and reborrow under the revolving line of credit until the line of credit termination date of January 15, 2019, after which no advances under the revolving line of credit may be reborrowed. The term loan commencement date would begin on January 16, 2019. Line of Credit borrowings and the term loan will accrue interest at the Lender’s prime rate minus .25%, subject to a 3.50% floor. Beginning 90 days after the effective date of the revolving line of credit, the Company is required to pay quarterly payments of interest. In addition, commencing on January 15, 2019, the Company must pay quarterly principal amortization payments of $262,500 for each fiscal quarter in 2019, $287,500 for each fiscal quarter in 2020, $312,500 for each fiscal quarter in 2021 and $337,500 for each fiscal quarter in 2022 until and including the maturity date. The scheduled principal amortization payments are based upon the assumption that the revolving line of credit is fully drawn, and the required payments will be reduced on a pro-rata basis relative to the amount borrowed if the revolving line of credit is not fully drawn. The loan will mature on October 15, 2022, at which time all outstanding amounts under the loan agreement no. 2 will become due and payable. In connection with entering into the Loan Agreement No. 2, the Company issued to the Lender a line of credit note dated as of October 31, 2017. The Loan Agreement No. 2 contains typical representations, warranties and covenants for a revolving line of credit, and the loan agreement has certain financial covenants and capital ratio requirements. Pursuant to the Loan Agreement No. 2, the Bank may not permit non-performing assets to be greater than 3.25% of total assets. The Bank must not permit its Texas ratio (nonperforming assets divided by the sum of tangible equity plus the allowance for loan and lease losses) to be greater than 35.00%, and must not permit its liquidity ratio to be less than 9.00% (or less than 10.00% for two consecutive quarters). The Bank will not permit, at the end of each quarter, its returns on average assets to be less than .45% from December 31, 2017 through and including September 30, 2018 and .50% at December 31, 2018 and thereafter. The Bank will not permit the debt service coverage ratio, as of June 30 and December 31 of each fiscal year, commencing on December 31, 2017, to be less than 1.25:1.00 . The regulatory covenant states the Company will be "well capitalized," or such other successor term with a similar meaning, for all applicable state and federal regulatory purposes at all times, and will not be subject to any written agreement, order, capital directive or prompt corrective action directive by any Governmental Authority having regulatory authority over the Company, except where such order, capital directive or prompt corrective action directive does not result in, nor could reasonably be expected to result in, a Material Adverse Effect, or if required by any Governmental Authority having regulatory authority over the Borrower in order to remain "well capitalized" and in compliance with all applicable regulatory requirements, will have such higher amounts of Total Risk-based Capital and Tier 1 Risk-based Capital and/or such greater Tier 1 Leverage Ratio as specified by such Governmental Authority. Each Financial Institution Subsidiary of the Company will be "well capitalized , " or such other successor term with a similar meaning, for all applicable state and federal regulatory purposes at all times, and such Financial Institution Subsidiary (i) will have a Total Risk-based Capital Ratio of 10.50% or greater, a Tier 1 Risk based Capital Ratio of 9.50% or greater, and a Tier 1 Leverage Ratio of 8.00% or greater (each as defined by applicable federal and state regulations or orders) and not be subject to any written agreement, order, capital directive or prompt corrective action directive by any Governmental Authority having regulatory authority over such Financial Institution Subsidiary, except where such order, capital directive or prompt corrective action directive does not result in, nor could reasonably be expected to result in, a Material Adverse Effect, or (ii) if required by any Governmental Authority having regulatory authority over such Financial Institution Subsidiary in order to remain "well capitalized" and in compliance with all applicable regulatory requirements, will have such higher amounts of Total Risk-based Capital and Tier 1 Risk-based Capital and/or such greater Tier 1 Leverage Ratio as specified by such Governmental Authority. Notwithstanding the foregoing, if at any time any such Governmental Authority changes the definition of "well capitalized" either by amending such ratios or otherwise, such amended definition, and any such amended or new ratios, shall automatically, and in lieu of the existing definitions and ratios set forth in this Section, be incorporated by reference into this Agreement as the minimum standard for the Company or any Financial Institution Subsidiary, as the case may be, on and as of the date that any such amendment becomes effective by applicable statute, regulation, order or otherwise. The interest coverage ratio covenant states the Company will not permit, as of June 30 and December 31 of each fiscal year, commencing December 31, 2017, its interest coverage ratio to be less than 2.50:1.00. As of December 31, 2017 , the Company and the Bank were in compliance with all of the loan covenants except for the return on assets. The return on assets covenant was not met due to the tax law enacted in December 2017 which caused the Company to write down the deferred tax asset to the new tax rate. Capstar has waived the covenant for December 2017 since the non-compliance was due to the tax law change and not caused by operations of the Company or Bank. The Loan Agreement No. 2 has standard and commercially reasonable events of default, such as non-payment, failure to perform any covenant or agreement, breach of any representation or warranty, failure to pay other material indebtedness, bankruptcy, insolvency, any ERISA event, any material judgment, any material adverse effect, any change in control, any failure to be insured by the FDIC or any action by a governmental or regulatory authority, etc. The Lender has the right to accelerate the indebtedness upon an event of default. The obligations of the Company under the Loan Agreement No. 2 are secured by a pledge of all of the capital stock of the Bank pursuant to stock pledge and security agreements. In the event of a default by the Company under the loan Agreement, the lender may terminate the commitments made under the loan agreement, declare all amounts outstanding to be payable immediately, and exercise or pursue any other remedy permitted under the loan agreement or the pledge agreements, or conferred to the lender by operation of law. As of December 31, 2017, the outstanding borrowings under the line of credit were $10,000,000 and the rate was 4.25% . The primary source of liquidity for the Company is the payment of dividends from the Bank. As of December 31, 2016 and 2017, the Bank was under no dividend restrictions that requires regulatory approval prior to the payment of a dividend from the Bank to the Company. FHLB borrowings: The Bank has agreements with the Federal Home Loan Bank of Cincinnati (FHLB) that can provide advances to the Bank in an amount up to $36,224,294 . All of the loans are secured by first mortgages on 1-4 family residential, multi-family properties and commercial properties and are pledged as collateral for these advances. Additionally, the Bank pledged securities to FHLB with a carrying amount of $16,252,434 at December 31, 2017 and $14,844,441 at December 31, 2016. At December 31, 2017, there were no advances from the FHLB. At December 31, 2016, FHLB advances consisted of the following (amounts in thousands): Long-term advance dated January 10, 2007, requiring monthly interest payments, fixed at 4.25%, with a put option exercisable in January 2008 and then quarterly thereafter, principal due in January 2017 $ 5,000 As of December 31, 2017 and December 31, 2016, there was a fair value adjustment of $0 and $ 5,765 , respectively, to FHLB borrowings as a result of a business combination. During the fixed rate term, the advances may be prepaid subject to a prepayment penalty as defined in the agreements. On agreements with put options, the FHLB has the right, at its discretion, to terminate the entire advance prior to the stated maturity date. The termination option may only be exercised on the expiration date of the predetermined lockout period and on a quarterly basis thereafter. At December 31, 2017, scheduled maturities of the Federal Home Loan Bank advances, federal funds purchased of $33,600,000 , and other borrowings are as follows (amounts in thousands): 2018 $33,600 2022 $10,000 |
Employee Benefit Plans (FY)
Employee Benefit Plans (FY) | 12 Months Ended |
Dec. 31, 2017 | |
Defined Benefit Plan [Abstract] | |
Employee Benefit Plans | Note 10. Employee Benefit Plans 401(k) Plan: The Company provides a deferred salary reduction plan (“ Plan ”) under Section 401 (k) of the Internal Revenue Code covering substantially all employees. After one year of service the Company matches 100 percent of employee contributions up to 3 percent of compensation and 50 percent of employee contributions on the next 2 percent of compensation. The Company's contribution to the Plan was $427,975 in 2017 and $403,309 in 2016 . Stock Option Plans: The Company has one currently active equity incentive plan administered by the Board of Directors, and three plans or programs, pursuant to which the Company has outstanding prior grants. These plans are described below: Legacy Cornerstone Bancshares, Inc. 2002 Long Term Incentive Plan – The plan provided Cornerstone Bancshares, Inc. officers and employees incentive stock options or non-qualified stock options to purchase shares of common stock. The exercise price for incentive stock options was not less than 100 percent of the fair market value of the common stock on the date of the grant. The exercise price of the non-qualified stock options was equal to or more or less than the fair market value of the common stock on the date of the grant. This plan expired in 2012. Legacy Cornerstone Non-Qualified Plan Options — During 2013 and 2014, Cornerstone issued non-qualified options to employees and directors. The options were originally documented in 2013 as being issued out of the Cornerstone Bancshares, Inc. 2002 Long Term Incentive Plan but that plan expired in 2012. The non-qualified options are governed by the grant document issued to the holders which incorporate the terms of the plan by reference. Legacy SmartFinancial, Inc. 2010 Incentive Plan - This plan was assumed by the Company on August 31, 2015. This plan provides for incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, performance awards, dividend equivalents and stock or other stock-based awards. The maximum number of common shares that could be sold or optioned under the plan is 525,000 shares. Under the plan, the exercise price of each option could not be less than 100 percent of the fair market value of the common stock on the date of grant. 2015 Stock Incentive Plan – This plan provides for incentive stock options, nonqualified stock options, and restricted stock. The maximum number of shares of common stock that can be sold or optioned under the plan is 2,000,000 shares. The term of each option shall be no more than ten years from the date of grant. In the case of an incentive stock option granted to a participant who, at the time the option is granted, owns stock representing more than ten percent of the voting power of all classes of stock of the Company or any parent or subsidiary thereof, the term of the option shall be five years from the date of grant or such shorter term as may be provided in the award agreement. The per share exercise price for the shares to be issued upon exercise of an option shall be such price as is determined by the plan administrator, subject to the following: In the case of an incentive stock option: (1) granted to an employee who, at the time of grant of such option, owns stock representing more than ten percent of the voting power of all classes of stock of the company or any parent or subsidiary thereof, the exercise price shall be no less than one hundred and ten percent of the fair market value per share on the date of grant; or (2) granted to any other employee, the per share exercise price shall be no less than one hundred percent of the fair market value per share on the date of grant. In the case of a nonstatutory stock option, the per share exercise price shall be no less than one hundred percent of the fair market value per share on the date of grant, unless otherwise determined by the Administrator. The incentive stock options vest 30 percent on the second anniversary of the grant date, 30 percent on the third anniversary of the grant date and 40 percent on the fourth anniversary of the grant date. Director non-qualified stock options vest 50 percent on the first anniversary of the grant date and 50 percent on the second anniversary of the grant date. Legacy Capstone Stock Option Plan - This plan was assumed by the Company on November 3, 2017 and subsequently closed. The plan provided for incentive stock options and nonqualified stock options. Under the plan, the exercise price of each option could not be less than 100 percent of the fair market value of the common stock on the date of grant. Number Weighted Average Exercisable Price Outstanding at December 31, 2016 717,524 $ 10.57 Granted — — Exercised (506,923 ) 9.64 Forfeited (24,496 ) 19.90 Capstone options assumed in business combination 130,469 11.76 Outstanding at December 31, 2017 316,574 $ 11.82 Number Weighted Average Exercisable Price Outstanding at December 31, 2015 817,414 $ 10.62 Granted — — Exercised (89,556 ) 8.98 Forfeited (10,334 ) 28.49 Outstanding at December 31, 2016 717,524 $ 10.57 Information pertaining to options outstanding at December 31, 2017 , is as follows: Options Outstanding Options Exercisable Weighted- Average Remaining Weighted- Average Weighted- Average Exercise Number Contractual Exercise Number Exercise Prices Outstanding Life Price Exercisable Price 6.60 37,500 4.2 years 6.60 37,500 6.60 6.80 16,875 3.2 years 6.80 16,875 6.80 9.48 26,875 5.2 years 9.48 26,875 9.48 9.60 35,625 6.2 years 9.60 35,625 9.60 11.67 2,000 3.1 years 11.67 2,000 11.67 11.76 130,469 1.9 years 11.76 130,469 11.76 14.40 12,805 1.2 years 14.40 12,805 14.40 15.05 41,259 7.8 years 15.05 17,804 15.05 31.96 13,166 0.2 years 31.96 13,166 31.96 Outstanding, end of year 316,574 3.7 years 11.82 293,119 11.56 The Company recognized stock option compensation expense of $97,966 and $132,635 for the periods ended December 31, 2017 and 2016 , respectively. Stock appreciation rights compensation expense of $21,829 was recognized for the period ended December 31, 2017. There was no stock appreciated rights compensation expense recognized for the period ended December 31, 2016. Direct stock grant expense issued to local advisory board members of $31,791 was included in salary and benefit expense for the period ended December 31, 2017. There was no direct stock grant expense for the period ended December 31, 2016. The total fair value of shares underlying the options which vested during the periods ended December 31, 2017 and 2016 , was $313,977 and $95,658 , respectively. The income tax benefit recognized for the exercise of options for the periods ended December 31, 2017 and 2016 was $1,331,689 and $252,931 respectively. The intrinsic value of options exercised during the periods ended December 31, 2017 and 2016 was $5,468,780 and $660,476 , respectively. The aggregate intrinsic value of total options outstanding and exercisable options at December 31, 2017 was $3,261,940 and $ 3,105,964 , respectively. Cash received from options exercised under all share-based payment arrangements for the period ended December 31, 2017 was $4,885,646 . Information related to non-vested options for the period ended December 31, 2017 , is as follows: Number Weighted Average Grant-Date Fair Value Nonvested at December 31, 2016 47,970 $ 12.31 Granted — — Vested (14,469 ) 12.31 Forfeited/expired (10,046 ) 12.31 Nonvested at December 31, 2017 23,455 $ 12.31 As of December 31, 2017 , there was approximately $258,000 of total unrecognized compensation cost related to nonvested stock-based compensation arrangements granted under the Plans. The cost is expected to be recognized over a weighted-average period of 1.0 years . There were no stock options granted during the twelve months period ended December 31, 2017 and December 31, 2016. Restricted Stock Awards: On August 4, 2017, the the Board of Directors of the Company made grants of 27,500 shares of restricted stock under the Company’s 2015 Stock Incentive Plan to certain executives of the Company. The restricted shares of stock, which are subject to the terms of a Restricted Stock Grant Agreement between the Company and each recipient, will fully vest on the fifth anniversary of the grant date. Prior to vesting, the recipient will be entitled to vote the shares and receive dividends, if any, declared by the Company with respect to its common stock. Compensation expense for restricted stock is based on the fair value of the restricted stock awards at the time of the grant, which is equal to the market value of the Company’s common stock on the date of grant. The value of the restricted stock grants that are expected to vest is amortized monthly into compensation expense over the five year vesting period. The restricted shares had a fair value of $24.58 per share on the date of issuance. For the period ended December 31, 2017 , compensation expense of $56,330 was recognized related to non-vested restricted stock awards. There was no compensation expenses related to these awards in 2016. As of December 31, 2017 , there was $619,620 of unrecognized compensation cost related to non-vested restricted stock awards granted under the plan. The following table summarizes activity relating to non-vested restricted stock awards: Number Nonvested at December 31, 2016 — Granted 27,500 Vested — Forfeited/expired — Nonvested at December 31, 2017 27,500 |
Securities Sold Under Agreement
Securities Sold Under Agreements to Repurchase (FY) | 12 Months Ended |
Dec. 31, 2017 | |
Securities Sold Under Agreement to Repurchase [Abstract] | |
Securities Sold Under Agreements to Repurchase | Note 11. Securities Sold Under Agreements to Repurchase Securities sold under repurchase agreements, which are secured borrowings, generally mature within one to four days from the transaction date. Securities sold under repurchase agreements are reflected at the amount of cash received in connection with the transaction. The Company may be required to provide additional collateral based on the fair value of the underlying securities. The Company monitors the fair value of the underlying securities on a daily basis. At December 31, 2017 and 2016 , the Company had securities sold under agreements to repurchase of $24,054,730 and $26,621,984 , respectively, with commercial checking customers. |
Commitments and Contingencies (
Commitments and Contingencies (FY) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments and Contingencies | Note 6. Commitments and Contingent Liabilities Off Balance Sheet Arrangements: In the normal course of business, the Bank has entered into off-balance sheet financial instruments which include commitments to extend credit (i.e., including unfunded lines of credit) and standby letters of credit. Commitments to extend credit are usually the result of lines of credit granted to existing borrowers under agreements that the total outstanding indebtedness will not exceed a specific amount during the term of the indebtedness. Typical borrowers are commercial concerns that use lines of credit to supplement their treasury management functions; thus their total outstanding indebtedness may fluctuate during any time period based on the seasonality of their business and the resultant timing of their cash flows. Other typical lines of credit are related to home equity loans granted to consumers. Commitments to extend credit generally have fixed expiration dates or other termination clauses and may require payment of a fee. Standby letters of credit are generally issued on behalf of an applicant (our client) to a specifically named beneficiary and are the result of a particular business arrangement that exists between the applicant and the beneficiary. Standby letters of credit have fixed expiration dates and are usually for terms of two years or less unless terminated beforehand due to criteria specified in the standby letter of credit. A typical arrangement involves the applicant routinely being indebted to the beneficiary for such items as inventory purchases, insurance, utilities, lease guarantees or other third party commercial transactions. The standby letter of credit would permit the beneficiary to obtain payment from the Bank under certain prescribed circumstances. Subsequently, the Bank would seek reimbursement from the applicant pursuant to the terms of the standby letter of credit. The Bank follows the same credit policies and underwriting practices when making these commitments as it does for on-balance sheet instruments. Each client’s creditworthiness is evaluated on a case-by-case basis, and the amount of collateral obtained, if any, is based on management’s credit evaluation of the customer. Collateral held varies but may include cash, real estate and improvements, marketable securities, accounts receivable, inventory, equipment and personal property. The contractual amounts of these commitments are not reflected in the consolidated financial statements and would only be reflected if drawn upon. Since many of the commitments are expected to expire without being drawn upon, the contractual amounts do not necessarily represent future cash requirements. However, should the commitments be drawn upon and should customers default on their resulting obligation to the Bank the maximum exposure to credit loss, without consideration of collateral, is represented by the contractual amount of those instruments. A summary of the Bank’s total contractual amount for all off-balance sheet commitments at June 30, 2018 is as follows: Commitments to extend credit $ 299.6 million Standby letters of credit $ 3.7 million Various legal claims also arise from time to time in the normal course of business. In the opinion of management, the resolution of claims outstanding at June 30, 2018 will not have a material effect on the Company's consolidated financial statements. | Note 12. Commitments and Contingencies Loan Commitments: The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing and depository needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Such commitments involve, to varying degrees, elements of credit risk and interest rate risk in excess of the amount recognized in the balance sheets. The majority of all commitments to extend credit are variable rate instruments while the standby letters of credit are primarily fixed rate instruments. The Company's exposure to credit loss is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments as it does for on-balance sheet instruments. A summary of the Company's total contractual amount for all off-balance sheet commitments at December 31, 2017 is as follows: Commitments to extend credit 292.8 million Standby letters of credit, issued by the Company 5.5 million Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management's credit evaluation of the customer. Collateral held varies, but may include accounts receivable, inventory, property and equipment, residential real estate, and income-producing commercial properties. Standby letters of credit issued by the Company are conditional commitments to guarantee the performance of a customer to a third party. Those letters of credit are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. Collateral held varies and is required in instances which the Company deems necessary. At December 31, 2017 and 2016 , the carrying amount of liabilities related to the Company's obligation to perform under standby letters of credit was insignificant. The Company has not been required to perform on any standby letters of credit, and the Company has not incurred any losses on standby letters of credit for the years ended December 31, 2017 and 2016 . Contingencies: In the normal course of business, the Company may become involved in various legal proceedings. In the opinion of management, any liability resulting from such proceedings would not have a material effect on the Company's financial statements. |
Regulatory Matters (FY)
Regulatory Matters (FY) | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Regulatory Matters | Note 13. Regulatory Matters Regulatory Capital Requirements: The Company and the Bank are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgements by regulators. Failure to meet capital requirements can initiate regulatory action. The final rules implementing Basel Committee on Banking Supervision’s capital guidelines for U.S. banks (Basel III rules) became effective for the Company on January 1, 2015, with full compliance with all of the requirements being phased in over a multi-year schedule, and fully phased in by January 1, 2019. Under Basel III rules, the Company must hold a capital conservation buffer above the adequately capitalized risk‑based capital ratios. The capital conservation buffer is being phased in at the rate of 0.625% per year from 0.0% in 2015 to 2.50% on January 1, 2019. The capital conservation buffer for 2017 is 1.25% and for 2016 is 0.625%. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. Management believes as of December 31, 2017, the Company and Bank meet all capital adequacy requirements to which they are subject. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At year end 2017 and 2016, the most recent regulatory notifications categorized both the Company and the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Company's or the Bank's category. Management currently believes, based on internal capital analysis and earnings projections, the Company's and the Bank's capital position is adequate to meet current and future regulatory minimum capital requirements. Regulatory Restrictions on Dividends: Pursuant to Tennessee banking law, the Bank may not, without the prior consent of the Commissioner of the Tennessee Department of Financial Institutions (TDFI), pay any dividends to the Company in a calendar year in excess of the total of the Bank's retained net income for that year plus the retained net income for the preceding two years. During the year ended December 31, 2017 , SmartBank paid no dividends to the Company. As of December 31, 2017 , the Bank could pay approximately $11.5 million of additional dividends to the Company without prior approval of the Commissioner of the TDFI. Regulatory Capital Levels: Actual and required capital levels at December 31, 2017 and 2016 are presented below (dollars in thousands): Actual Minimum for capital adequacy purposes Minimum to be well capitalized under prompt corrective action provisions (1) Amount Ratio Amount Ratio Amount Ratio December 31, 2017 SmartFinancial, Inc. Total Capital (to Risk-Weighted Assets) $ 163,683 10.98 % $ 119,257 8.00 % Tier 1 Capital (to Risk-Weighted Assets) 157,823 10.59 % 89,442 6.00 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) 157,823 10.59 % 67,082 4.50 % Tier 1 Capital (to Average Assets) 157,823 10.78 % 58,562 4.00 % SmartBank Total Capital (to Risk-Weighted Assets) $ 168,148 11.29 % $ 119,111 8.00 % $ 148,889 10.00 % Tier 1 Capital (to Risk-Weighted Assets) 162,288 10.90 % 89,333 6.00 % 119,111 8.00 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) 162,288 10.90 % 67,000 4.50 % 96,778 6.50 % Tier 1 Capital (to Average Assets) 162,288 11.26 % 57,656 4.00 % 72,070 5.00 % (1) The prompt corrective action provisions are applicable at the Bank level only. Actual Minimum for capital Minimum to be well Amount Ratio Amount Ratio Amount Ratio December 31, 2016 SmartFinancial, Inc. Total Capital (to Risk-Weighted Assets) $ 105,756 11.99 % $ 70,553 8.00 % Tier 1 Capital (to Risk-Weighted Assets) 100,651 11.42 % 52,915 6.00 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) 88,651 10.05 % 39,686 4.50 % Tier 1 Capital (to Average Assets) 100,651 9.81 % 41,052 4.00 % SmartBank Total Capital (to Risk-Weighted Assets) $ 104,705 11.88 % $ 70,535 8.00 % $ 88,169 10.00 % Tier 1 Capital (to Risk-Weighted Assets) 99,600 11.30 % 52,901 6.00 % 70,535 8.00 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) 99,600 11.30 % 39,676 4.50 % 57,310 6.50 % Tier 1 Capital (to Average Assets) 99,600 9.71 % 41,041 4.00 % 51,301 5.00 % (1) The prompt corrective action provisions are applicable at the Bank level only. |
Concentrations of Credit Risk (
Concentrations of Credit Risk (FY) | 12 Months Ended |
Dec. 31, 2017 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk | Note 14. Concentrations of Credit Risk The Company originates primarily commercial, residential, and consumer loans to customers in Tennessee, Florida, Georgia and Alabama. The ability of the majority of the Company's customers to honor their contractual loan obligations is dependent on the economy in these areas. Eighty-one percent of the Company's loan portfolio is concentrated in loans secured by real estate, of which a substantial portion is secured by real estate in the Company's primary market areas. Commercial real estate, including commercial construction loans, represented 56 percent of the loan portfolio at December 31, 2017 , and 61 percent of the loan portfolio at December 31, 2016 . Accordingly, the ultimate collectability of the loan portfolio and recovery of the carrying amount of foreclosed assets is susceptible to changes in real estate conditions in the Company's primary market areas. The other concentrations of credit by type of loan are set forth in Note 4. The Bank, as a matter of policy, does not generally extend credit to any single borrower or group of related borrowers in excess of 25% of statutory capital, or approximately $42,325,000. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities (FY) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | ||
Fair Value of Assets and Liabilities | Note 7. Fair Value Disclosures Determination of Fair Value: The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In accordance with the “Fair Value Measurements and Disclosures” ASC Topic 820, the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. ASC Topic 820 provides a consistent definition of fair value, which focuses on exit price in an orderly transaction between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. Fair Value Hierarchy: In accordance with this guidance, the Company groups its financial assets and financial liabilities generally measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Level 1 - Valuation is based on quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 assets and liabilities generally include debt and equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2 - Valuation is based on inputs other than quoted prices included within Level I that are observable for the asset or liability, either directly or indirectly. The valuation may be based on quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. Level 3 - Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which determination of fair value requires significant management judgment or estimation. A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following methods and assumptions were used by the Company in estimating fair value disclosures for financial instruments: Cash and Cash Equivalents: For cash and due from banks, interest-bearing deposits, and federal funds sold, the carrying amount is a reasonable estimate of fair value based on the short-term nature of the assets and are considered Level 1 inputs. Securities Available-for-Sale: Where quoted prices are available in an active market, management classifies the securities within Level 1 of the valuation hierarchy. If quoted market prices are not available, management estimates fair values using pricing models that use observable inputs or quoted prices at securities with similar characteristics. Examples of such instruments, which would generally be classified within Level 2 of the valuation hierarchy, including GSE obligations, corporate bonds, and other securities. Mortgage-backed securities are included in Level 2 if observable inputs are available. In certain cases where there is limited activity or less transparency around inputs to the valuation, management classifies those securities in Level 3. Restricted Investments: It is not practicable to determine the fair value of restricted investments due the restrictions placed on its transferability. Loans: With the adoption of ASU 2016-01 on January 1, 2018, we refined our methodology to estimate the fair value of our loan portfolio to use the exit price notion as required by the ASU. The guidance was applied on a prospective approach resulting in prior-periods no longer being comparable. See “Note 1 – Presentation of Financial Information” for further information. For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. Fair value for fixed rate loans are estimated using discounted cash flow analyses, using market interest rates for comparable loans. Fair values for nonperforming loans are estimated using discounted cash flow analyses or underlying collateral values, where applicable. These methods are considered Level 3 inputs. Deposits: The fair values disclosed for demand deposits (for example, interest and noninterest checking, savings, and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (that is, their carrying amounts) and are considered Level 2 inputs. Fair values for fixed-rate time deposits are estimated using a discounted cash flow calculation that applies market interest rates on comparable instruments to a schedule of aggregated expected monthly maturities on time deposits, and are considered Level 2 inputs. Securities Sold Under Agreement to Repurchase: The carrying value of these liabilities approximates their fair value, and are considered Level 1 inputs. Federal Home Loan Bank ("FHLB") Advances and Other Borrowings: The fair value of the FHLB fixed rate borrowings are estimated using discounted cash flows, based on the current incremental borrowing rates for similar types of borrowing arrangements, and are considered Level 2 inputs. The carrying value of FHLB floating rate borrowings and floating rate other borrowings approximates their fair value and are considered Level 1 inputs. Commitments to Extend Credit and Standby Letters of Credit: Because commitments to extend credit and standby letters of credit are made using variable rates and have short maturities, the carrying value and the fair value are immaterial for disclosure. Measurements of Fair Value: Assets and liabilities recorded at fair value on a recurring basis are as follows (in thousands): Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Debt securities available-for-sale: U.S. Government-sponsored enterprises (GSEs) $ 28,128 $ — $ 28,128 $ — Mortgage-backed securities 111,954 — 111,954 — Other debt securities 911 — 911 — Municipal securities 15,584 — 15,584 — Total securities available-for-sale $ 156,577 $ — $ 156,577 $ — Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Debt securities available-for-sale: U.S. Government-sponsored enterprises (GSEs) $ 25,776 $ — $ 25,776 $ — Mortgage-backed securities 116,215 — 116,215 — Other debt securities 950 — 950 — Municipal securities 9,003 — 9,003 — Total securities available-for-sale $ 151,944 $ — $ 151,944 $ — The Company has no assets or liabilities whose fair values are measured on a recurring basis using Level 3 inputs. Additionally, there were no transfers between Level 1 and Level 2 in the fair value hierarchy. Assets Measured at Fair Value on a Nonrecurring Basis: Under certain circumstances management makes adjustments to fair value for assets and liabilities although they are not measured at fair value on an ongoing basis. The following tables present the financial instruments carried on the consolidated balance sheets by caption and by level in the fair value hierarchy, for which a nonrecurring change in fair value has been recorded (in thousands): Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Impaired loans $ 407 $ — $ — $ 407 Foreclosed assets 3,524 — — 3,524 Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Impaired loans $ 769 $ — $ — $ 769 Foreclosed assets 3,254 — — 3,254 For Level 3 assets measured at fair value on a non-recurring basis as of March 31, 2018 and December 31, 2017, the significant unobservable inputs used in the fair value measurements are presented below (in thousands). Balance as of Valuation Significant Other Weighted Impaired loans $ 407 Appraisal and Cashflow Appraisal and Cashflow Discounts 47 % Foreclosed assets 3,524 Appraisal Appraisal Discounts 19 % Balance as of Valuation Significant Other Weighted Impaired loans $ 769 Appraisal Appraisal Discounts 36 % Foreclosed assets 3,254 Appraisal Appraisal Discounts 18 % Impaired Loans: Loans considered impaired under ASC 310-10-35, Receivables , are loans for which, based on current information and events, it is probable that the Company will be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan agreement. Impaired loans can be measured based on the present value of expected payments using the loan’s original effective rate as the discount rate, the loan’s observable market price, or the fair value of the collateral less selling costs if the loan is collateral dependent. The fair value of impaired loans were measured based on the value of the collateral securing these loans or the discounted cash flows of the loans, as applicable. Impaired loans are classified within Level 3 of the fair value hierarchy. Collateral may be real estate and/or business assets including equipment, inventory, and/or accounts receivable. The Company determines the value of the collateral based on independent appraisals performed by qualified licensed appraisers. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Appraised values are discounted for costs to sell and may be discounted further based on management’s historical knowledge, changes in market conditions from the date of the most recent appraisal, and/or management’s expertise and knowledge of the customer and the customer’s business. Such discounts by management are subjective and are typically significant Foreclosed assets: Foreclosed assets, consisting of properties obtained through foreclosure or in satisfaction of loans, are initially recorded at fair value less estimated costs to sell upon transfer of the loans to other real estate. Subsequently, other real estate is carried at the lower of carrying value or fair value less costs to sell. Fair values are generally based on third party appraisals of the property and are classified within Level 3 of the fair value hierarchy. The appraisals are sometimes further discounted based on management’s historical knowledge, and/or changes in market conditions from the date of the most recent appraisal, and/or management’s expertise and knowledge of the customer and the customer’s business. Such discounts are typically significant unobservable inputs for determining fair value. In cases where the carrying amount exceeds the fair value, less estimated costs to sell, a loss is recognized in noninterest expense. Carrying value and estimated fair value: The carrying amount and estimated fair value of the Company’s financial instruments at June 30, 2018 and December 31, 2017 are as follows (in thousands): June 30, 2018 Fair Value Measurements Using Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value Assets: Cash and cash equivalents $ 170,235 170,235 — — $ 170,235 Securities available-for-sale 156,577 — 156,577 — 156,577 Restricted investments 8,273 N/A N/A N/A N/A Loans, net 1,568,361 — — 1,569,916 1,569,916 Liabilities: Noninterest-bearing demand deposits 301,318 — 301,318 — 301,318 Interest-bearing demand deposits 246,942 — 246,942 — 246,942 Money Market and Savings deposits 632,518 — 632,518 — 632,518 Time deposits 535,879 — 537,006 — 537,006 Securities sold under agreements to repurchase 18,635 — 18,635 — 18,635 Federal Home Loan Bank advances and other borrowings 72,040 — 72,040 — 72,040 December 31, 2017 Fair Value Measurements Using Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value Assets: Cash and cash equivalents $ 113,027 113,027 — — $ 113,027 Securities available-for-sale 151,944 — 151,944 — 151,944 Restricted investments 6,431 N/A N/A N/A N/A Loans, net 1,317,398 — — 1,292,303 1,292,303 Liabilities: Noninterest-bearing demand deposits 220,520 — 220,520 — 250,520 Interest-bearing demand deposits 231,644 — 231,644 — 231,644 Money Market and Savings deposits 543,645 — 543,645 — 543,645 Time deposits 442,774 — 443,547 — 443,547 Securities sold under agreements to repurchase 24,055 — 24,055 — 24,055 Federal Home Loan Bank advances and other borrowings 43,600 — 43,600 — 43,600 Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on many judgments. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial instruments include deferred income taxes and premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. | Note 15. Fair Value of Assets and Liabilities Determination of Fair Value: The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In accordance with Fair Value Measurements and Disclosures topic (FASB ASC 820), the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company's various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. Fair Value Hierarchy: In accordance with this guidance, the Company groups its financial assets and financial liabilities generally measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Level 1 - Valuation is based on quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 assets and liabilities generally include debt and equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2 - Valuation is based on inputs other than quoted prices included within Level I that are observable for the asset or liability, either directly or indirectly. The valuation may be based on quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. Level 3 - Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which determination of fair value requires significant management judgment or estimation. A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following methods and assumptions were used by the Company in estimating fair value disclosures for financial instruments: Cash and Cash Equivalents: For cash and due from banks, interest-bearing deposits, and federal funds sold, the carrying amount is a reasonable estimate of fair value based on the short-term nature of the assets and are considered Level 1 inputs. Securities Available for Sale: Where quoted prices are available in an active market, management classifies the securities within Level 1 of the valuation hierarchy. If quoted market prices are not available, management estimates fair values using pricing models and discounted cash flows that consider standard input factors such as observable market data, benchmark yields, interest rate volatilities, broker/dealer quotes, and credit spreads. Examples of such instruments, which would generally be classified within Level 2 of the valuation hierarchy, including GSE obligations, corporate bonds, and other securities. Mortgage-backed securities are included in Level 2 if observable inputs are available. In certain cases where there is limited activity or less transparency around inputs to the valuation, management classifies those securities in Level 3. Restricted Investments: It is not practicable to determine the fair value of restricted investments due the restrictions placed on its transferability. Loans: For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. Fair value for fixed rate loans are estimated using discounted cash flow analyses, using market interest rates for comparable loans. Fair values for nonperforming loans are estimated using discounted cash flow analyses or underlying collateral values, where applicable. These methods are considered Level 3 inputs. Deposits: The fair values disclosed for demand deposits (for example, interest and noninterest checking, savings, and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (that is, their carrying amounts) and are considered Level 1 inputs. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies market interest rates on comparable instruments to a schedule of aggregated expected monthly maturities on time deposits, and are considered Level 2 inputs. Securities Sold Under Agreement to Repurchase: The carrying value of these liabilities approximates their fair value, and are considered Level 1 inputs. Federal Home Loan Bank Advances and Other Borrowings: The fair value of the FHLB fixed rate borrowings are estimated using discounted cash flows, based on the current incremental borrowing rates for similar types of borrowing arrangements, and are considered Level 2 inputs. Commitments to Extend Credit and Standby Letters of Credit: Because commitments to extend credit and standby letters of credit are made using variable rates and have short maturities, the carrying value and the fair value are immaterial for disclosure. Assets Measured at Fair Value on a Recurring Basis: Assets recorded at fair value on a recurring basis are as follows, in thousands Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Securities available-for-sale: U.S. Government-sponsored enterprises (GSEs) $ 25,776 $ — $ 25,776 $ — Municipal securities 9,003 — 9,003 — Other debt securities 950 — 950 — Mortgage-backed securities 116,215 — 116,215 — Total securities available-for-sale $ 151,944 $ — $ 151,944 $ — Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Securities available-for-sale: U.S. Government-sponsored enterprises (GSEs) $ 17,723 $ — $ 17,723 $ — Municipal securities 8,019 — 8,019 — Mortgage-backed securities 103,680 — 103,680 — Total securities available-for-sale $ 129,422 $ — $ 129,422 $ — The Company has no assets or liabilities whose fair values are measured on a recurring basis using Level 3 inputs. Additionally, there were no transfers between Level 1 and Level 2 in the fair value hierarchy. Assets Measured at Fair Value on a Nonrecurring Basis: Under certain circumstances management makes adjustments to fair value for assets and liabilities although they are not measured at fair value on an ongoing basis. The following tables present the financial instruments carried on the consolidated balance sheets by caption and by level in the fair value hierarchy, for which a nonrecurring change in fair value has been recorded (in thousands): Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Impaired loans $ 769 $ — $ — $ 769 Foreclosed assets 3,254 — — 3,254 Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Impaired loans $ 239 $ — $ — $ 239 Foreclosed assets 2,386 — — 2,386 For Level 3 assets measured at fair value on a non-recurring basis as of December 31, 2017 and 2016 , the significant unobservable inputs used in the fair value measurements are presented below. Balance as of Valuation Technique Significant Other Unobservable Input Weighted Average of Input Impaired loans $ 769 Third Party Appraisal Appraisal Discounts 35.5 % Foreclosed assets 3,254 Third Party Appraisal Appraisal Discounts 17.8 % Balance as of Valuation Technique Significant Other Unobservable Input Weighted Average of Input Impaired loans $ 239 Cash Flow Discounted Cash Flow / Appraisal Discounts 2.4 % Foreclosed assets 2,386 Appraisal Appraisal Discounts 12.2 % Impaired Loans: Loans considered impaired under ASC 310-10-35, Receivables , are loans for which, based on current information and events, it is probable that the Company will be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan agreement. Impaired loans can be measured based on the present value of expected payments using the loan’s original effective rate as the discount rate, the loan’s observable market price, or the fair value of the collateral less selling costs if the loan is collateral dependent. The fair value of impaired loans were measured based on the value of the collateral securing these loans or the discounted cash flows of the loans, as applicable. Impaired loans are classified within Level 3 of the fair value hierarchy. Collateral may be real estate and/or business assets including equipment, inventory, and/or accounts receivable. The Company determines the value of the collateral based on independent appraisals performed by qualified licensed appraisers. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Appraised values are discounted for costs to sell and may be discounted further based on management’s historical knowledge, changes in market conditions from the date of the most recent appraisal, and/or management’s expertise and knowledge of the customer and the customer’s business. Such discounts by management are subjective and are typically significant unobservable inputs for determining fair value. Impaired loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly, based on the same factors discussed above. Foreclosed assets: Foreclosed assets, consisting of properties obtained through foreclosure or in satisfaction of loans, are initially recorded at fair value less estimated costs to sell upon transfer of the loans to other real estate. Subsequently, other real estate is carried at the lower of carrying value or fair value less costs to sell. Fair values are generally based on third party appraisals of the property and are classified within Level 3 of the fair value hierarchy. The appraisals are sometimes further discounted based on management’s historical knowledge, and/or changes in market conditions from the date of the most recent appraisal, and/or management’s expertise and knowledge of the customer and the customer’s business. Such discounts are typically significant unobservable inputs for determining fair value. In cases where the carrying amount exceeds the fair value, less estimated costs to sell, a loss is recognized in noninterest expense. Carrying value and estimated fair value: The carrying amount and estimated fair value of the Company’s financial instruments at December 31, 2017 and December 31, 2016 are as follows (in thousands): December 31, 2017 December 31, 2016 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets: Cash and cash equivalents $ 113,027 $ 113,027 $ 68,748 $ 68,748 Securities available for sale 151,944 151,944 129,422 129,422 Restricted investments 6,431 N/A 5,628 N/A Loans, net 1,317,398 1,292,303 808,271 803,057 Liabilities: Noninterest-bearing demand deposits 220,520 220,520 153,483 153,483 Interest-bearing demand deposits 231,644 231,644 162,702 162,702 Savings deposits 543,645 543,645 274,605 274,605 Time deposits 442,774 443,547 316,275 316,734 Securities sold under agreements to repurchase 24,055 24,055 26,622 26,622 Federal Home Loan Bank advances and other borrowings 43,600 43,600 18,505 18,505 Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on many judgments. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial instruments include deferred income taxes and premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. |
Small Business Lending Fund (FY
Small Business Lending Fund (FY) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Small Business Lending Fund [Abstract] | ||
Small Business Lending Fund | Note 8. Small Business Lending Fund In connection with the Company's merger with Legacy SmartFinancial, Inc. in 2015, the company assumed Legacy SmartFinancial's obligations under that certain stock purchase agreement with the U.S. Department of the Treasury and issued 12,000 shares of preferred stock at $1,000 per share under the Small Business Lending Fund Program (the " SBLF Program ").The Company paid cash dividends at a one percent rate or $120,000 for the year ended December 31, 2015 on the preferred shares. On February 4, 2016 the dividend rate for the preferred shares increased to nine percent and as a result the company incurred preferred stock dividends of $1,022,000 for the year ended December 31, 2016 . On January 30, 2017, the Company completed a public offering of 2,010,084 shares of its common stock with the net proceeds to the Company of approximately $33.2 million . On March 6, 2017 the Company used proceeds from the offering to redeem the $12 million of preferred stock and pay the $195 thousand accrued dividend. | Note 16. Small Business Lending Fund In connection with the Company's merger with Legacy SmartFinancial, Inc. in 2015, the Company assumed Legacy SmartFinancial's obligations under a stock purchase agreement with the U.S. Department of the Treasury and issued 12,000 shares of preferred stock at $1,000 per share under the Small Business Lending Fund Program (the "SBLF Program").The Company paid cash dividends at a one percent rate or $120,000 for the year ended December 31, 2015 on the preferred shares. On February 4, 2016 the dividend rate for the preferred shares increased to nine percent and as a result the Company incurred preferred stock dividends of $1,022,000 for the year ended December 31, 2016 . On January 30, 2017, the Company completed a public offering of 2,010,084 million shares of its common stock, par value $1.00 per share, with the gross proceeds to the Company of approximately $33.2 million . On March 6, 2017, the Company used proceeds from the offering to redeem the $12 million of preferred stock and pay the $195 thousand accrued dividend. |
Concentration in Deposits (FY)
Concentration in Deposits (FY) | 12 Months Ended |
Dec. 31, 2017 | |
Risks and Uncertainties [Abstract] | |
Concentration In Deposits | Note 17. Concentration in Deposits The Company had a concentration in its deposits of two customers totaling approximately $60,153,000 at December 31, 2016 and three customers totaling approximately $116,121,000 concentration of deposits at December 31, 2017 . |
Earnings Per Share (FY)
Earnings Per Share (FY) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Earnings Per Share | Note 3. Earnings per share The following is a summary of the basic and diluted earnings per share for the three and six months ended June 30, 2018 and 2017 . Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Net income available to common shareholders $ 3,931,556 $ 1,648,286 $ 7,346,326 $ 3,097,138 Weighted average common shares outstanding 12,201,185 8,216,567 11,708,746 7,872,609 Effect of dilutive stock options 119,313 108,971 113,751 104,673 Diluted shares 12,320,498 8,325,538 11,822,497 7,977,282 Basic earnings per common share $ 0.32 $ 0.20 $ 0.63 $ 0.39 Diluted earnings per common share $ 0.32 $ 0.20 $ 0.62 $ 0.39 For the three and six months ended June 30, 2018 and 2017 , the effects of outstanding antidilutive stock options are excluded from the computation of diluted earnings per common share because the exercise price of such options is higher than the market price. There were no and 13,916 antidilutive stock options for the three and six months ended June 30, 2018 and 2017 | Note 18. Earnings Per Share Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding. Diluted earnings per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding and dilutive common share equivalents using the treasury stock method. Dilutive common share equivalents include common shares issuable upon exercise of outstanding stock options and restricted stock. The effect from the stock options on incremental shares from the assumed conversions for net income per share-basic and net income per share-diluted are presented below. There were antidilutive shares of 13,166 and 17,649 for the years ended December 31, 2017 and 2016 , respectively. (Dollars in thousands, except share amounts) 2017 2016 Basic earnings per share computation: Net income available to common stockholders $ 4,820 $ 4,777 Average common shares outstanding – basic 8,639,212 5,838,574 Basic earnings per share $ 0.56 $ 0.82 Diluted earnings per share computation: Net income available to common stockholders $ 4,820 $ 4,777 Average common shares outstanding – basic 8,639,212 5,838,574 Incremental shares from assumed conversions: Stock options 154,315 280,369 Average common shares outstanding - diluted 8,793,527 6,118,943 Diluted earnings per share $ 0.55 $ 0.78 |
Condensed Parent Information (F
Condensed Parent Information (FY) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Parent Information | Note 19. Condensed Parent Information (Dollars in thousands) CONDENSED BALANCE SHEETS December 31, December 31, 2017 2016 ASSETS Cash $ 3,936 $ 2,068 Investment in subsidiaries 168,104 100,023 Other assets 42,766 4,392 Total assets $ 214,806 $ 106,483 LIABILITIES AND STOCKHOLDERS’ EQUITY Other liabilities $ (1,046 ) $ 1,243 Other borrowings 10,000 — Total liabilities 8,954 1,243 Stockholders’ equity 205,852 105,240 Total liabilities and stockholders’ equity $ 214,806 $ 106,483 CONDENSED STATEMENTS OF INCOME Years Ended December 31, 2017 2016 INCOME Dividends $ — $ 3,000 Interest income — — — 3,000 EXPENSES Interest expense 69 17 Other operating expenses 2,657 1,146 (Loss) income before equity in undistributed earnings of subsidiaries and income tax benefit (2,726 ) 1,837 Equity in undistributed earnings of subsidiaries 7,134 3,520 Income tax benefit 607 442 Net income 5,015 5,799 Preferred stock dividend requirements 195 1,022 Net income available to common stockholders $ 4,820 $ 4,777 STATEMENTS OF CASH FLOWS Years Ended December 31, 2017 2016 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 5,015 $ 5,799 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Equity in undistributed income of subsidiary (7,134 ) (3,520 ) Other (2,449 ) 1,234 Net cash (used in) provided by operating activities (4,568 ) 3,513 CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of note payable 10,000 — Repayment of note payable — (2,000 ) Redemption of preferred stock (12,000 ) — Proceeds from issuance of common stock 37,853 804 Payment of dividends on preferred stock (195 ) (752 ) Net cash provided by (used in) financing activities 35,658 (1,948 ) CASH FLOWS FROM INVESTING ACTIVITIES Net cash for purchase of Capstone Bancshares, Inc. (14,222 ) — Capital injection in subsidiary (15,000 ) Net cash used in investing activities (29,222 ) — NET INCREASE IN CASH AND CASH EQUIVALENTS 1,868 1,565 CASH AND CASH EQUIVALENTS, beginning of year 2,068 503 CASH AND CASH EQUIVALENTS, end of year $ 3,936 $ 2,068 |
Presentation of Financial Inf45
Presentation of Financial Information (Q2) (Policies) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Nature of Business | Nature of Business: SmartFinancial, Inc. (the “Company”) is a bank holding company whose principal activity is the ownership and management of its wholly-owned subsidiary, SmartBank (the “Bank”). The Company provides a variety of financial services to individuals and corporate customers through its offices in eastern Tennessee, Alabama, Florida, and Georgia. The Company’s primary deposit products are interest-bearing demand deposits and time deposits. Its primary lending products are commercial, residential, and consumer loans. On May 22, 2017, the Company along with the Bank entered into an agreement and plan of merger with Capstone Bancshares, Inc., an Alabama corporation and Capstone Bank, an Alabama-chartered commercial bank and wholly owned subsidiary of Capstone Bancshares, Inc. which became effective on November 1, 2017. On December 12, 2017, the Company along with the Bank entered into an agreement and plan of merger with Tennessee Bancshares, Inc., a Tennessee corporation and Southern Community Bank, a Tennessee-chartered commercial bank and wholly owned subsidiary of Tennessee Bancshares which became effective on May 1, 2018. | Nature of Business: SmartFinancial, Inc. (the " Company ") is a bank holding company whose principal activity is the ownership and management of its wholly-owned subsidiary, SmartBank (the " Bank |
Interim Financial Information (Unaudited) | Interim Financial Information (Unaudited): The financial information in this report for June 30, 2018 and June 30, 2017 has not been audited. The information included herein should be read in conjunction with the Company’s annual consolidated financial statements and footnotes included in the Company's most recent Annual Report on Form 10-K. The consolidated financial statements presented herein conform to U.S. generally accepted accounting principles and to general industry practices. In the opinion of SmartFinancial’s management, the accompanying interim financial statements contain all material adjustments necessary to present fairly the financial condition, the results of operations, and cash flows for the interim period. Results for interim periods are not necessarily indicative of the results to be expected for a full year. | |
Basis of Presentation and Accounting Estimates | Basis of Presentation and Accounting Estimates: All adjustments consisting of normal recurring accruals, that in the opinion of management, are necessary for a fair presentation of the financial position and the results of operations for the periods covered by the report have been included. The accompanying unaudited consolidated financial statements and related notes should be read in conjunction with those appearing in the most recent Annual Report previously filed on Form 10-K. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany balances and transactions have been eliminated in consolidation. In preparing the consolidated financial statements in conformity with accounting principles generally accepted in the U.S, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet, and reported amounts of revenues and expenses during the reporting period. Actual results could differ 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 valuation of foreclosed assets and deferred taxes, other-than-temporary impairments of securities, and the fair value of financial instruments. The determination of the adequacy of the allowance for loan losses is based on estimates that are particularly susceptible to significant changes in the economic environment and market conditions. In connection with the determination of the estimated losses on loans, management obtains independent appraisals for significant collateral. The Company’s loans are generally secured by specific items of collateral including real property, consumer assets, and business assets. Although the Company has a diversified loan portfolio, a substantial portion of its debtors’ ability to honor their contracts is dependent on local economic conditions. While management uses available information to recognize losses on loans, further reductions in the carrying amounts of loans may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the estimated losses on loans. Such agencies may require the Company to recognize additional losses based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the estimated losses on loans may change materially in the near term. However, the amount of the change that is reasonably possible cannot be estimated. | Basis of Presentation and Accounting Estimates: The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany balances and transactions have been eliminated in consolidation. In preparing the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet, and reported amounts of revenues and expenses during the reporting period. Actual results could differ 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 valuation of foreclosed assets and deferred taxes, other than temporary impairments of securities, and the fair value of financial instruments. The determination of the adequacy of the allowance for loan losses is based on estimates that are particularly susceptible to significant changes in the economic environment and market conditions. In connection with the determination of the estimated losses on loans, management obtains independent appraisals for significant collateral. The Company's loans are generally secured by specific items of collateral including real property, consumer assets, and business assets. Although the Company has a diversified loan portfolio, a substantial portion of its debtors' ability to honor their contracts is dependent on local economic conditions. While management uses available information to recognize losses on loans, further reductions in the carrying amounts of loans may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the estimated losses on loans. Such agencies may require the Company to recognize additional losses based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the estimated losses on loans may change materially in the near term. The Company has evaluated subsequent events for potential recognition and/or disclosure in the consolidated financial statements and accompanying notes included in this Annual Report through the date of the issued consolidated financial statements. |
Accounting Changes and Recently Issued Accounting Pronouncements | Accounting Changes: We adopted ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)” and its related amendments as of January 1, 2018 utilizing the modified retrospective approach. The implementation of the new standard did not have a material impact on the measurement or recognition of revenue; as such, a cumulative effect adjustment to opening retained earnings was not deemed necessary. Since the guidance does not apply to revenue associated with financial instruments, including loans and securities that are accounted for under other GAAP, the new guidance did not have a material impact on revenue most closely associated with financial instruments, including interest income and expense. The Company completed its overall assessment of revenue streams and review of related contracts potentially affected by the ASU, including, deposit related fees, interchange fees, merchant income, and insurance and brokerage commissions. Based on this assessment, the Company concluded that ASU 2014-09 did not materially change the method in which the Company currently recognizes revenue for these revenue streams. Under ASU 2014-09, we adopted new policies related to revenue recognition. In general, for revenue not associated with financial instruments, guarantees and lease contracts, we apply the following steps when recognizing revenue from contracts with customers: (i) identify the contract, (ii) identify the performance obligations, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations and (v) recognize revenue when performance obligation is satisfied. Our contracts with customers are generally short term in nature, typically due within one year or less or cancellable by us or our customer upon a short notice period. Performance obligations for our customer contracts are generally satisfied at a single point in time, typically when the transaction is complete, or over time. For performance obligations satisfied over time, we primarily use the output method, directly measuring the value of the products/services transferred to the customer, to determine when performance obligations have been satisfied. We typically receive payment from customers and recognize revenue concurrent with the satisfaction of our performance obligations. In most cases, this occurs within a single financial reporting period. For payments received in advance of the satisfaction of performance obligations, revenue recognition is deferred until such time the performance obligations have been satisfied. In cases where we have not received payment despite satisfaction of our performance obligations, we accrue an estimate of the amount due in the period our performance obligations have been satisfied. For contracts with variable components, only amounts for which collection is probable are accrued. We generally act in a principal capacity, on our own behalf, in most of our contracts with customers. In such transactions, we recognize revenue and the related costs to provide our services on a gross basis in our financial statements. In some cases, we act in an agent capacity, deriving revenue through assisting other entities in transactions with our customers. In such transactions, we recognized revenue and the related costs to provide our services on a net basis in our financial statements. These transactions relate to our customers' use of various interchange and ATM/debit card networks. Based on our underlying contracts, ASU 2014-09 requires us to report network costs associated with debit card and ATM transactions netted against the related fees from such transactions. Previously, such network costs were reported as a component of other noninterest expense. For the three and six months periods ended June 30, 2018, gross interchange and debit card transaction fees totaled $401 thousand and $733 thousand , respectively while related network costs totaled $280 thousand and $467 thousand , respectively. On a net basis, we reported $121 thousand and $267 thousand as interchange and debit card transaction fees in the accompanying Consolidated Statement of Income for the three and six months periods ended June 30, 2018. For the three and six months periods ended June 30, 2017, we reported interchange and debit card transaction fees totaling $223 thousand and $416 thousand , respectively on a gross basis in the accompanying Consolidated Statement of Income while related network costs totaling $140 thousand and $227 thousand , respectively were reported in other operating expenses included as a component of other noninterest expense. ASU 2016-01 "Financial Instruments - Overall (Subtopic 825-10): Recognition of Financial Assets and Financial Liabilities, ("ASU 2016-01") makes targeted amendments to the guidance for recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 requires equity investments, other than equity method investments, to be measured at fair value with changes in fair value recognized in net income. The ASU requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption to reclassify the cumulative change in fair value of equity securities previously recognized in Accumulated Other Comprehensive Income. ASU 2016-01 became effective for the Company on January 1, 2018 and there was no adjustment to retained earnings. ASU 2016-01 also emphasizes the existing requirement to use exit prices to measure fair value for disclosure purposes and clarifies that entities should not make use of a practicability exception in determining the fair value of loans. Accordingly, we refined the calculation used to determine the disclosed fair value of our loans held for investment portfolio as part of adopting this standard. The refined calculation is disclosed Note 6 - Fair Value Disclosures. In February 2018, the FASB issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income; (“ASU 2018-02”). ASU 2018-02 amends ASC Topic 220 and allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (“Tax Reform Act”). Consequently, this amendment eliminates the stranded tax effects resulting from the Tax Reform Act and will improve the usefulness of information reported to financial statement users. However, because the amendments only related to the reclassification of the income tax effects of the Tax Reform Act, the underlying guidance that requires that the effects of the change in tax laws or rates be included in income from continuing operations is not affected. The guidance is effective for public companies for annual periods beginning on or after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. This amendment should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in U.S. federal corporate income tax rate in the Tax Reform Act is recognized. The Company early adopted this amendment in the fourth quarter of 2017 and reclassified $197 thousand from accumulated other comprehensive income to retained earnings for the stranded tax effects resulting from the Tax Reform Act. Recently Issued Accounting Pronouncements: During interim periods, the Company follows the accounting policies set forth in its annual audited financial statements for the year ended December 31, 2017 as filed with the Securities and Exchange Commission. The following is a summary of recent authoritative pronouncements not yet effective that could impact the accounting, reporting, and/or disclosure of financial information by the Company issued since December 31, 2017 . In February 2016, the FASB issued guidance that requires lessees to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability in ASU 2016-2: Leases (Topic 842). For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines. Lessor accounting is similar to the current model, but updated to align with certain changes to the lessee model and the new revenue recognition standard. Existing sale-leaseback guidance, including guidance for real estate, is replaced with a new model applicable to both lessees and lessors. The new guidance will be effective for public business entities for annual periods beginning after December 15, 2018 including interim periods within those fiscal years. The Company has several lease agreements, such as branch locations, which are currently considered operating leases, and therefore, not recognized on the Company’s consolidated statements of condition. The Company expects the new guidance will require these lease agreements to be recognized on the consolidated statements of condition as a right-of-use asset and a corresponding lease liability. Therefore, the Company’s preliminary evaluation indicates the provisions of ASU No. 2016-02 are expected to impact the Company’s consolidated statements of condition, along with our regulatory capital ratios. However, the Company continues to evaluate the extent of potential impact the new guidance will have on the Company’s consolidated financial statements. The Company is in the process of identifying a complete inventory of arrangements containing a lease and accumulating the lease data necessary to apply the amended guidance. In January 2018, the FASB issued ASU 2018-01, Leases (Topic 842) Land Easement Practical Expedient Transition to Topic 842 , an amendment to ASU 2016-2: Leases. The amendments in this Update permit an entity to elect an optional transition practical expedient to not evaluate under Topic 842 land easements that exist or expired before the entity’s adoption of Topic 842 and that were not previously accounted for as leases under Topic 840. An entity that elects this practical expedient should apply the practical expedient consistently to all of its existing or expired land easements that were not previously accounted for as leases under Topic 840. Once an entity adopts Topic 842, it should apply that Topic prospectively to all new (or modified) land easements to determine whether the arrangement should be accounted for as a lease. An entity that does not elect this practical expedient should evaluate all existing or expired land easements in connection with the adoption of the new lease requirements in Topic 842 to assess whether they meet the definition of a lease. An entity should continue to apply its current accounting policy for accounting for land easements that existed before the entity’s adoption of Topic 842. For example, if an entity currently accounts for certain land easements as leases under Topic 840, it should continue to account for those land easements as leases before its adoption of Topic 842. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in Update 2016-02, for which the company is currently evaluating the impact. In June 2016, FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The ASU changed the credit loss model on financial instruments measured at amortized cost, available for sale securities and certain purchased financial instruments. Credit losses on financial instruments measured at amortized cost will be determined using a current expected credit loss model which requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. Purchased financial assets with more-than-insignificant credit deterioration since origination ("PCD assets" which are currently named "PCI Loans") measured at amortized cost will have an allowance for credit losses established at acquisition as part of the purchase price. Subsequent increases or decreases to the allowance for credit losses on PCD assets will be recognized in the income statement. Interest income should be recognized on PCD assets based on the effective interest rate, determined excluding the discount attributed to credit losses at acquisition. Credit losses relating to available-for-sale debt securities will be recognized through an allowance for credit losses. The amount of the credit loss is limited to the amount by which fair value is below amortized cost of the available-for-sale debt security. The amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years for the Company and other SEC filers. Early adoption is permitted and if early adopted, all provisions must be adopted in the same period. The amendments should be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the period adopted. A prospective approach is required for securities with other than temporary impairment recognized prior to adoption. The Company is continuing its implementation efforts through its Company-wide implementation team. The implementation team meets periodically to discuss the latest developments and ensure progress is being made. The team also keeps current on evolving interpretations and industry practices related to ASU 2016-13 via webcasts, publications, conferences, and peer bank meetings. The team continues to evaluate and validate data resources and different loss methodologies. The Company’s preliminary evaluation indicates the provisions of ASU No. 2016-13 are expected to impact the Company’s consolidated financial statements, in particular an increase to the level of the reserve for credit losses. However, the Company continues to evaluate the extent of the potential impact. In January 2017, FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The ASU simplifies the subsequent measurement of goodwill and eliminates Step 2 from the goodwill impairment test. The Company should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value. The impairment charge is limited to the amount of goodwill allocated to that reporting unit. The amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect these amendments to have a material effect on its consolidated financial statements. In March 2017, FASB issued ASU No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Topic 310-20): Premium Amortization on Purchased Callable Debt Securities. The ASU shortens the amortization period for certain callable debt securities held at a premium. The premium on individual callable debt securities shall be amortized to the earliest call date. This guidance does not apply to securities for which prepayments are estimated on a large number of similar loans where prepayments are probable and reasonably estimable. The amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. This update should be adopted on a modified retrospective basis with a cumulative-effect adjustment to retained earnings on the date of adoption. The Company does not expect these amendments to have a material effect on its consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities , which amends the hedge accounting recognition and presentation requirements in Accounting Standards Codification (ASC) 815, Derivatives and Hedging . The goals of the ASU are to (1) improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities by better aligning the entity’s financial reporting for hedging relationships with those risk management activities and (2) reduce the complexity of and simplify the application of hedge accounting by preparers . The amendments will be effective for the Company for interim and annual periods beginning after December 15, 2018. The Company does not expect these amendments to have a material effect on its consolidated financial statements. As part of its Simplification Initiative, the FASB has issued (ASU) No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting . ASU No. 2018-07 expands the scope of Topic 718, Compensation-Stock Compensation (which previously only included payments to employees), to include share-based payment transactions for acquiring goods and services from non-employees. This required entities to apply the requirements of Topic 718 to non-employee awards, except for specific guidance on inputs to an option pricing model and the attribution of cost (i.e., the period of time over which share-based payment awards vest and the pattern of cost recognition over that period). Additionally, the amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in the grantor’s own operations by issuing share-based payment awards, and clarify that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer, or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers . The amendments are effective for fiscal years beginning after December 15, 2018, and for the interim periods within those years. The Company does not expect these amendments to have a material effect on its consolidated financial statements. | Recently Issued Not Yet Effective Accounting Pronouncements: The following is a summary of recent authoritative pronouncements not yet in effect that could impact the accounting, reporting, and/or disclosure of financial information by the Company. In January 2016, the FASB issued guidance that primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments in ASU No. 2016-1 - Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The guidance will be effective in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is evaluating the impact of this update on its financial statements. In February 2016, the FASB issued guidance that requires lessees to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability in ASU 2016-2: Leases (Topic 842). For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines. Lessor accounting is similar to the current model, but updated to align with certain changes to the lessee model and the new revenue recognition standard. Existing sale-leaseback guidance, including guidance for real estate, is replaced with a new model applicable to both lessees and lessors. The new guidance will be effective for public business entities for annual periods beginning after December 15, 2018 including interim periods within those fiscal years. The Company is evaluating the impact of this update on its financial statements. In January 2018, the FASB issued ASU 2018-01, Leases (Topic 842) Land Easement Practical Expedient Transition to Topic 842 , an amendment to ASU 2016-2: Leases. The amendments in this Update permit an entity to elect an optional transition practical expedient to not evaluate under Topic 842 land easements that exist or expired before the entity’s adoption of Topic 842 and that were not previously accounted for as leases under Topic 840. An entity that elects this practical expedient should apply the practical expedient consistently to all of its existing or expired land easements that were not previously accounted for as leases under Topic 840. Once an entity adopts Topic 842, it should apply that Topic prospectively to all new (or modified) land easements to determine whether the arrangement should be accounted for as a lease. An entity that does not elect this practical expedient should evaluate all existing or expired land easements in connection with the adoption of the new lease requirements in Topic 842 to assess whether they meet the definition of a lease. An entity should continue to apply its current accounting policy for accounting for land easements that existed before the entity’s adoption of Topic 842. For example, if an entity currently accounts for certain land easements as leases under Topic 840, it should continue to account for those land easements as leases before its adoption of Topic 842. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in Update 2016-02. In June 2016, FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The ASU changed the credit loss model on financial instruments measured at amortized cost, available for sale securities and certain purchased financial instruments. Credit losses on financial instruments measured at amortized cost will be determined using a current expected credit loss model which requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. Purchased financial assets with more-than-insignificant credit deterioration since origination ("PCD assets" which are currently named "PCI Loans") measured at amortized cost will have an allowance for credit losses established at acquisition as part of the purchase price. Subsequent increases or decreases to the allowance for credit losses on PCD assets will be recognized in the income statement. Interest income should be recognized on PCD assets based on the effective interest rate, determined excluding the discount attributed to credit losses at acquisition. Credit losses relating to available-for-sale debt securities will be recognized through an allowance for credit losses. The amount of the credit loss is limited to the amount by which fair value is below amortized cost of the available-for-sale debt security. The amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years for the Company and other SEC filers. Early adoption is permitted and if early adopted, all provisions must be adopted in the same period. The amendments should be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the period adopted. A prospective approach is required for securities with other than temporary impairment recognized prior to adoption. The Company is still reviewing the impact the adoption of this guidance will have on its financial statements. In January 2017, FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The ASU simplifies the subsequent measurement of goodwill and eliminates Step 2 from the goodwill impairment test. The Company should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value. The impairment charge is limited to the amount of goodwill allocated to that reporting unit. The amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In January 2017, FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . The ASU clarifies the definition of a business to assist with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments in this update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company does not expect these amendments to have a material effect on its financial statements. In March 2017, FASB issued ASU No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Topic 310-20): Premium Amortization on Purchased Callable Debt Securities. The ASU shortens the amortization period for certain callable debt securities In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities , which amends the In May 2014, the FASB issued guidance to change the recognition of revenue from contracts with customers in ASU No. 2014-9, Revenue from Contracts with Customers (Topic 606) . The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. The guidance will be effective for the Company for annual periods beginning after December 15, 2017, and interim periods within annual reporting periods beginning after December 15, 2017. The Company will apply the guidance using a full retrospective approach. The Company does not expect these amendments to have a material effect on its financial statements. |
Reclassifications | Reclassifications: Certain captions and amounts in the 2017 consolidated financial statements were reclassified to conform to the 2018 presentation and these reclassifications had no impact on net income or equity as previously reported. | Reclassifications: Certain captions and amounts in the 2017 consolidated financial statements were reclassified to conform to the 2018 presentation and these reclassifications had no impact on net income or equity as previously reported. |
Earnings Per Common Share | Earnings per common share: Basic earnings per common share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance (excluding tax impact). Potential common shares that may be issued by the Company relate solely to outstanding stock options, determined using the treasury stock method, and restricted stock awards, determined by the fair value of the Company's stock on date of grant. | Earnings per common share: Basic earnings per common share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance (excluding tax impact). Potential common shares that may be issued by the Company relate solely to outstanding stock options, determined using the treasury stock method, and restricted stock awards, determined by the fair value of the Company's stock on date of grant. |
Summary of Significant Accoun46
Summary of Significant Accounting Policies (FY) (Policies) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | ||
Nature of Business | Nature of Business: SmartFinancial, Inc. (the “Company”) is a bank holding company whose principal activity is the ownership and management of its wholly-owned subsidiary, SmartBank (the “Bank”). The Company provides a variety of financial services to individuals and corporate customers through its offices in eastern Tennessee, Alabama, Florida, and Georgia. The Company’s primary deposit products are interest-bearing demand deposits and time deposits. Its primary lending products are commercial, residential, and consumer loans. On May 22, 2017, the Company along with the Bank entered into an agreement and plan of merger with Capstone Bancshares, Inc., an Alabama corporation and Capstone Bank, an Alabama-chartered commercial bank and wholly owned subsidiary of Capstone Bancshares, Inc. which became effective on November 1, 2017. On December 12, 2017, the Company along with the Bank entered into an agreement and plan of merger with Tennessee Bancshares, Inc., a Tennessee corporation and Southern Community Bank, a Tennessee-chartered commercial bank and wholly owned subsidiary of Tennessee Bancshares which became effective on May 1, 2018. | Nature of Business: SmartFinancial, Inc. (the " Company ") is a bank holding company whose principal activity is the ownership and management of its wholly-owned subsidiary, SmartBank (the " Bank |
Basis of Presentation and Accounting Estimates | Basis of Presentation and Accounting Estimates: All adjustments consisting of normal recurring accruals, that in the opinion of management, are necessary for a fair presentation of the financial position and the results of operations for the periods covered by the report have been included. The accompanying unaudited consolidated financial statements and related notes should be read in conjunction with those appearing in the most recent Annual Report previously filed on Form 10-K. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany balances and transactions have been eliminated in consolidation. In preparing the consolidated financial statements in conformity with accounting principles generally accepted in the U.S, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet, and reported amounts of revenues and expenses during the reporting period. Actual results could differ 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 valuation of foreclosed assets and deferred taxes, other-than-temporary impairments of securities, and the fair value of financial instruments. The determination of the adequacy of the allowance for loan losses is based on estimates that are particularly susceptible to significant changes in the economic environment and market conditions. In connection with the determination of the estimated losses on loans, management obtains independent appraisals for significant collateral. The Company’s loans are generally secured by specific items of collateral including real property, consumer assets, and business assets. Although the Company has a diversified loan portfolio, a substantial portion of its debtors’ ability to honor their contracts is dependent on local economic conditions. While management uses available information to recognize losses on loans, further reductions in the carrying amounts of loans may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the estimated losses on loans. Such agencies may require the Company to recognize additional losses based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the estimated losses on loans may change materially in the near term. However, the amount of the change that is reasonably possible cannot be estimated. | Basis of Presentation and Accounting Estimates: The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany balances and transactions have been eliminated in consolidation. In preparing the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet, and reported amounts of revenues and expenses during the reporting period. Actual results could differ 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 valuation of foreclosed assets and deferred taxes, other than temporary impairments of securities, and the fair value of financial instruments. The determination of the adequacy of the allowance for loan losses is based on estimates that are particularly susceptible to significant changes in the economic environment and market conditions. In connection with the determination of the estimated losses on loans, management obtains independent appraisals for significant collateral. The Company's loans are generally secured by specific items of collateral including real property, consumer assets, and business assets. Although the Company has a diversified loan portfolio, a substantial portion of its debtors' ability to honor their contracts is dependent on local economic conditions. While management uses available information to recognize losses on loans, further reductions in the carrying amounts of loans may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the estimated losses on loans. Such agencies may require the Company to recognize additional losses based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the estimated losses on loans may change materially in the near term. The Company has evaluated subsequent events for potential recognition and/or disclosure in the consolidated financial statements and accompanying notes included in this Annual Report through the date of the issued consolidated financial statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents: For purposes of reporting consolidated cash flows, cash and due from banks includes cash on hand, cash items in process of collection and amounts due from banks. Cash and cash equivalents also includes interest-bearing deposits in banks and federal funds sold. Cash flows from loans, federal funds sold, securities sold under agreements to repurchase and deposits are reported net. The Bank is required to maintain average balances in cash or on deposit with the Federal Reserve Bank. The reserve requirement was $16,546,000 and $15,208,000 at December 31, 2017 and 2016 , respectively. The Company places its cash and cash equivalents with other financial institutions and limits the amount of credit exposure to any one financial institution. From time to time, the balances at these financial institutions exceed the amount insured by the Federal Deposit Insurance Corporation. The Company has not experienced any losses on these accounts and management considers this to be a normal business risk. | |
Securities | Securities: Management has classified all securities as available for sale. Securities available for sale are recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive loss. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. The Company evaluates investment securities quarterly for other than temporary impairment using relevant accounting guidance specifying that (a) if the Company does not have the intent to sell a debt security prior to recovery and (b) it is more likely than not that it will not have to sell the debt security prior to recovery, the security would not be considered other than temporarily impaired unless a credit loss has occurred in the security. If management does not intend to sell the security and it is more likely than not that they will not have to sell the security before recovery of the cost basis, management will recognize the credit component of an other-than- temporary impairment of a debt security in earnings and the remaining portion in other comprehensive loss. Securities borrowed or purchased under agreements to resell and securities loaned or sold under agreements to repurchase are treated as collateralized financial transactions. These agreements are recorded at the amount at which the securities were acquired or sold plus accrued interest. It is the Company's policy to take possession of securities purchased under resale agreements. The market value of these securities is monitored, and additional securities are obtained when deemed appropriate to ensure such transactions are adequately collateralized. The Company also monitors its exposure with respect to securities sold under repurchase agreements, and a request for the return of excess securities held by the counterparty is made when deemed appropriate. | |
Restricted-Investments | Restricted - Investments: The Company is required to maintain an investment in capital stock of various entities. Based on redemption provisions of these entities, the stock has no quoted market value and is carried at cost. At their discretion, these entities may declare dividends on the stock. Management reviews for impairment based on the ultimate recoverability of the cost basis in these stocks. | |
Loans | Loans: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal balances less deferred fees and costs on originated loans and the allowance for loan losses. Interest income is accrued on the outstanding principal balance. Loan origination fees, net of certain direct origination costs of consumer and installment loans are recognized at the time the loan is placed on the books. Loan origination fees for all other loans are deferred and recognized as an adjustment of the yield over the life of the loan using the straight-line method without anticipating prepayments. The accrual of interest on loans is discontinued when, in management's opinion, the borrower may be unable to meet payments as they become due, or at the time the loan is 90 days past due, unless the loan is well-secured and in the process of collection. Unsecured loans are typically charged off no later than 120 days past due. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal and interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income or charged to the allowance, unless management believes that the accrual of interest is recoverable through the liquidation of collateral. Interest income on nonaccrual loans is recognized on the cash basis, until the loans are returned to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and the loan has been performing according to the contractual terms for a period of not less than six months. | |
Acquired Loans | Acquired Loans: Acquired loans are those acquired in business combinations by the Company or Bank. The fair values of acquired loans with evidence of credit deterioration, purchased credit impaired loans (“ PCI loans ”), are recorded net of a nonaccretable discount and accretable discount. Any excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable discount and is recognized in interest income over the remaining life of the loan when there is reasonable expectation about the amount and timing of such cash flows. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is the nonaccretable discount, which is included in the carrying amount of acquired loans. Subsequent decreases to the expected cash flows will generally result in a provision for loan losses. Subsequent increases in cash flows result in a reversal of the provision for loan losses to the extent of prior charges or a reclassification of the difference from nonaccretable to accretable with a positive impact on the accretable discount. Acquired loans are initially recorded at fair value at acquisition date. Accretable discounts related to certain fair value adjustments are accreted into income over the estimated lives of the loans. The Company accounts for performing loans acquired in the acquisition using the expected cash flows method of recognizing discount accretion based on the acquired loans' expected cash flows. Management recasts the estimate of cash flows expected to be collected on each acquired impaired loan pool periodically. If the present value of expected cash flows for a pool is less than its carrying value, an impairment is recognized by an increase in the allowance for loan losses and a charge to the provision for loan losses. If the present value of expected cash flows for a pool is greater than its carrying value, any previously established allowance for loan losses is reversed and any remaining difference increases the accretable yield which will be taken into interest income over the remaining life of the loan pool. Acquired impaired loans are generally not subject to individual evaluation for impairment and are not reported with impaired loans, even if they would otherwise qualify for such treatment. Purchased performing loans are recorded at fair value, including a credit discount. Credit losses on acquired performing loans are estimated based on analysis of the performing portfolio. Such estimated credit losses are recorded as nonaccretable discounts in a manner similar to purchased impaired loans. The fair value discount other than for credit loss is accreted as an adjustment to yield over the estimated lives of the loans. A provision for loan losses is recorded for any deterioration in these loans subsequent to the acquisition. | |
Allowance for Loan Losses | Allowance for Loan Losses: The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to expense. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Confirmed losses are charged off immediately. Subsequent recoveries, if any, are credited to the allowance. The allowance is an amount that management believes will be adequate to absorb estimated losses relating to specifically identified loans, as well as probable credit losses inherent in the balance of the loan portfolio. The allowance for loan losses is evaluated on a regular basis by management and is based upon management's periodic review of the uncollectibility of loans in light of historical experience, the nature and volume of the loan portfolio, overall portfolio quality, review of specific problem loans, current economic conditions that may affect the borrower's ability to pay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. This evaluation does not include the effects of expected losses on specific loans or groups of loans that are related to future events or expected changes in economic conditions. While management uses the best information available to make its evaluation, future adjustments to the allowance may be necessary if there are significant changes in economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company's allowance for loan losses, and may require the Company to make additions to the allowance based on their judgment about information available to them at the time of their examinations. The allowance consists of specific and general components. The specific component relates to loans that are classified as impaired. For impaired loans, an allowance is established when the discounted cash flows, collateral value, or observable market price of the impaired loan is lower than the carrying value of that loan. The general component covers non-impaired loans and is based on the Company's historical loss experience adjusted for other qualitative factors. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. An unallocated component may be maintained to cover uncertainties that could affect management's estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. As part of the risk management program, an independent review is performed on the loan portfolio, which supplements management’s assessment of the loan portfolio and the allowance for loan losses. The result of the independent review is reported directly to the Audit Committee of the Board of Directors. Loans, for which the terms have been modified at the borrower's request, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. A loan is considered impaired when it is probable, based on current information and events, the Company will be unable to collect all principal and interest payments due in accordance with 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 when due. Loans that experience insignificant payment delays and payment shortfalls are not classified as impaired. Impaired loans are measured by either the present value of expected future cash flows discounted at the loan's effective interest rate, the loan's obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Interest on accruing impaired loans is recognized as long as such loans do not meet the criteria for nonaccrual status. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. The Company's homogeneous loan pools include consumer real estate loans, commercial real estate loans, construction and land development loans, commercial and industrial loans, and consumer and other loans. The general allocations to these loan pools are based on the historical loss rates for specific loan types and the internal risk grade, if applicable, adjusted for both internal and external qualitative risk factors. The qualitative factors considered by management include, among other factors, (1) changes in local and national economic conditions; (2) changes in asset quality; (3) changes in loan portfolio volume; (4) the composition and concentrations of credit; (5) the impact of competition on loan structuring and pricing; (6) the impact of interest rate changes on portfolio risk and (7) effectiveness of the Company's loan policies, procedures and internal controls. The total allowance established for each homogeneous loan pool represents the product of the historical loss ratio adjusted for qualitative factors and the total dollar amount of the loans in the pool. | |
Troubled Debt Restructurings | Troubled Debt Restructurings: The Company designates loan modifications as troubled debt restructurings ("TDRs") when for economic and legal reasons related to the borrower's financial difficulties, it grants a concession to the borrower that it would not otherwise consider. TDRs can involve loans remaining on nonaccrual, moving to nonaccrual, or continuing on accrual status, depending on the individual facts and circumstances of the borrower. In circumstances where the TDR involves charging off a portion of the loan balance, the Company typically classifies these restructurings as nonaccrual. In connection with restructurings, the decision to maintain a loan that has been restructured on accrual status is based on a current, well documented credit evaluation of the borrower's financial condition and prospects for repayment under the modified terms. This evaluation includes consideration of the borrower's current capacity to pay, which among other things may include a review of the borrower's current financial statements, an analysis of global cash flow sufficient to pay all debt obligations, a debt to income analysis, and an evaluation of secondary sources of payment from the borrower and any guarantors. This evaluation also includes an evaluation of the borrower's current willingness to pay, which may include a review of past payment history, an evaluation of the borrower's willingness to provide information on a timely basis, and consideration of offers from the borrower to provide additional collateral or guarantor support. The credit evaluation also reflects consideration of the borrower's future capacity and willingness to pay, which may include evaluation of cash flow projections, consideration of the adequacy of collateral to cover all principal and interest, and trends indicating improving profitability and collectability of receivables. Restructured nonaccrual loans may be returned to accrual status based on a current, well-documented credit evaluation of the borrower's financial condition and prospects for repayment under the modified terms. This evaluation must include consideration of the borrower's sustained historical repayment for a reasonable period, generally a minimum of six months, prior to the date on which the loan is returned to accrual status. | |
Foreclosed Assets | Foreclosed Assets: Foreclosed assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less selling costs. Any write-down to fair value at the time of transfer to foreclosed assets is charged to the allowance for loan losses. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less costs to sell. Costs of improvements are capitalized, whereas costs relating to holding foreclosed assets and subsequent write-downs to the value are expensed. The amount of residential real estate where physical possession had been obtained included within foreclosed assets at December 31, 2017 and 2016 was $545,750 and $1,500 , respectively. The amount of residential real estate in process of foreclosure at December 31, 2017 and December 31, 2016 was $0 | |
Premises and Equipment | Premises and Equipment: Land is carried at cost. Premises and equipment are carried at cost less accumulated depreciation computed on the straight-line method over the estimated useful lives of the assets or the expected terms of the leases, if shorter. Expected terms include lease option periods to the extent that the exercise of such options is reasonably assured. Maintenance and repairs are expensed as incurred while major additions and improvements are capitalized. Gains and losses on dispositions are included in current operations. Buildings and leasehold improvements 15 - 40 years Furniture and equipment 3-7 years | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets: Goodwill represents the cost in excess of the fair value of net assets acquired (including identifiable intangibles) in transactions accounted for as business combinations. Goodwill has an indefinite useful life and is evaluated for impairment annually, or more frequently if events and circumstances indicate that the asset might be impaired. FASB ASC 350, Goodwill and Other , regarding testing goodwill for impairment provides an entity the option to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If an entity does a qualitative assessment and determines that this is the case, or if a qualitative assessment is not performed, it is required to perform additional goodwill impairment testing to identify potential goodwill impairment and measure the amount of goodwill impairment loss to be recognized for that reporting unit (if any). Based on a qualitative assessment, if an entity determines that the fair value of a reporting unit is more than its carrying amount, the two-step goodwill impairment test is not required. The Company performs its annual goodwill impairment test as of December 31 of each year. For 2017 , the results of the qualitative assessment provided no indication of potential impairment. Goodwill will continue to be monitored for triggering events that may indicate impairment prior to the next scheduled annual impairment test. Intangible assets consist of core deposit premiums created as a result of Business Combinations by the Company or Bank where deposits are assumed. The core deposit premium is initially recognized based on a valuation performed as of the consummation date. The core deposit premium is amortized over the average remaining life of the acquired customer deposits. Amortization expense relating to these intangible assets was $346,435 and $305,452 for the years ended December 31, 2017 and 2016 , respectively. The intangible assets were evaluated for impairment as of December 31, 2017 , and based on that evaluation it was determined that there was no impairment. | |
Transfer of Financial Assets | Transfer 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 the 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. | |
Advertising Costs | Advertising Costs: The Company expenses all advertising costs as incurred. Advertising expense was $637,600 and $615,751 for the years ended December 31, 2017 and 2016 , respectively. | |
Income Taxes | Income Taxes: The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management's judgment. Deferred tax assets may be reduced by deferred tax liabilities and a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. On December 22, 2017, the Tax Cuts and Jobs Act (TCJA) was signed into law by the President of the United States. TCJA is a tax reform act that among other things, reduced corporate tax rates to 21 percent effective January 1, 2018. FASB ASC 740, Income Taxes , requires deferred tax assets and liabilities to be adjusted for the effect of a change in tax laws or rates in the year of enactment, which is the year in which the change was signed into law. Accordingly, the Company adjusted its deferred tax assets and liabilities at December 31, 2017, using the new corporate tax rate of 21 percent. See Note 8. | |
Stock Compensation Plans | Stock Compensation Plans: At December 31, 2017 , the Company had options outstanding under stock-based compensation plans, which are described in more detail in Note 10. The plans have been accounted for under the accounting guidance (FASB ASC 718, Compensation - Stock Compensation) which requires that the compensation cost relating to share-based payment transactions be recognized in financial statements. That cost will be measured based on the grant date fair value of the equity or liability instruments issued. The stock compensation accounting guidance covers a wide range of share-based compensation arrangements including stock options, restricted share plans, performance-based awards, share appreciation rights, and stock or other stock based awards. The stock compensation accounting guidance requires that compensation cost for all stock awards be calculated and recognized over the employees' service period, generally defined as the vesting period. For awards with graded-vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. A Black-Scholes model is used to estimate the fair value of stock options, while the market value of the Company's common stock at the date of grant is used for restrictive stock awards and stock grants. | |
Employee Benefit Plan | Employee Benefit Plan: Employee benefit plan costs are based on the percentage of individual employee's salary, not to exceed the amount that can be deducted for federal income tax purposes. | |
Variable Interest Entities | Variable interest entities: An entity is referred to as a variable interest entity (VIE) if it meets the criteria outlined in ASC Topic 810, which are: (1) the entity has equity that is insufficient to permit the entity to finance its activities without additional subordinated financial support from other parties or (2) the entity has equity investors that cannot make significant decisions about the entity's operations or that do not absorb the expected losses or receive the expected returns of the entity. A VIE must be consolidated by the Company if it is deemed to be the primary beneficiary of the VIE, which is the party involved with the VIE that has a majority of the expected losses, expected residual returns, or both. At December 31, 2017 , the Company had an investment in Community Advantage Fund, LLC that qualified as an unconsolidated VIE. The Company’s investment in a partnership consists of an equity interest in a lending partnership for the purposes of loaning funds to an unrelated entity. This entity will use the funds to make loans through the SBA Community Advantage loan Initiative. The Company uses the equity method when it owns an interest in a partnership and can exert significant influence over the partnership’s operations. Under the equity method, the Company’s ownership interest in the partnership’s capital is reported as an investment on its consolidated balance sheets in other assets and the Company’s allocable share of the income or loss from the partnership is reported in noninterest income or expense in the consolidated statements of income. The Company ceases recording losses on an investment in partnership when the cumulative losses and distributions from the partnership exceed the carrying amount of the investment and any advances made by the Company. After the Company’s investment in such partnership reaches zero, cash distributions received from these investments are recorded as income. | |
Comprehensive Income | Comprehensive Income: Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities, are reported as a separate component of the equity section of the balance sheet, such items, along with net income, are components of comprehensive income. | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments: Fair values of financial instruments are estimates using relevant market information and other assumptions, as more fully disclosed in Note 15. Fair value estimates involve uncertainties and matters of significant judgment. Changes in assumptions or in market conditions could significantly affect the estimates. | |
Business Combinations | Business Combinations: Business combinations are accounted for using the acquisition method of accounting. Under the acquisition method of accounting, acquired assets and assumed liabilities are included with the acquirer's accounts as of the date of acquisition at estimated fair value, with any excess of purchase price over the fair value of the net assets acquired (including identifiable intangible assets) capitalized as goodwill. In the event that the fair value of the net assets acquired exceeds the purchase price, an acquisition gain is recorded for the difference in consolidated statements of income for the period in which the acquisition occurred. An intangible asset is recognized as an asset apart from goodwill when it arises from contractual or other legal rights or if it is capable of being separated or divided from the acquired entity and sold, transferred, licensed, rented or exchanged. In addition, acquisition-related costs and restructuring costs are recognized as period expenses as incurred. Estimates of fair value are subject to refinement for a period not to exceed one year from acquisition date as information relative to acquisition date fair values becomes available. | |
Earnings Per Common Share | Earnings per common share: Basic earnings per common share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance (excluding tax impact). Potential common shares that may be issued by the Company relate solely to outstanding stock options, determined using the treasury stock method, and restricted stock awards, determined by the fair value of the Company's stock on date of grant. | Earnings per common share: Basic earnings per common share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance (excluding tax impact). Potential common shares that may be issued by the Company relate solely to outstanding stock options, determined using the treasury stock method, and restricted stock awards, determined by the fair value of the Company's stock on date of grant. |
Segment Reporting | Segment Reporting: ASC Topic 280, “Segment Reporting,” provides for the identification of reportable segments on the basis of distinct business units and their financial information to the extent such units are reviewed by an entity’s chief decision maker (which can be an individual or group of management persons). ASC Topic 280 permits aggregation or combination of segments that have similar characteristics. In the Company’s operations, each bank branch is viewed by management as being a separately identifiable business or segment from the perspective of monitoring performance and allocation of financial resources. Although the branches operate independently and are managed and monitored separately, each is substantially similar in terms of business focus, type of customers, products, and services. Accordingly, the Company’s consolidated financial statements reflect the presentation of segment information on an aggregated basis in one reportable segment. | |
Recently Issued Not Yet Effective Accounting Pronouncements | Accounting Changes: We adopted ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)” and its related amendments as of January 1, 2018 utilizing the modified retrospective approach. The implementation of the new standard did not have a material impact on the measurement or recognition of revenue; as such, a cumulative effect adjustment to opening retained earnings was not deemed necessary. Since the guidance does not apply to revenue associated with financial instruments, including loans and securities that are accounted for under other GAAP, the new guidance did not have a material impact on revenue most closely associated with financial instruments, including interest income and expense. The Company completed its overall assessment of revenue streams and review of related contracts potentially affected by the ASU, including, deposit related fees, interchange fees, merchant income, and insurance and brokerage commissions. Based on this assessment, the Company concluded that ASU 2014-09 did not materially change the method in which the Company currently recognizes revenue for these revenue streams. Under ASU 2014-09, we adopted new policies related to revenue recognition. In general, for revenue not associated with financial instruments, guarantees and lease contracts, we apply the following steps when recognizing revenue from contracts with customers: (i) identify the contract, (ii) identify the performance obligations, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations and (v) recognize revenue when performance obligation is satisfied. Our contracts with customers are generally short term in nature, typically due within one year or less or cancellable by us or our customer upon a short notice period. Performance obligations for our customer contracts are generally satisfied at a single point in time, typically when the transaction is complete, or over time. For performance obligations satisfied over time, we primarily use the output method, directly measuring the value of the products/services transferred to the customer, to determine when performance obligations have been satisfied. We typically receive payment from customers and recognize revenue concurrent with the satisfaction of our performance obligations. In most cases, this occurs within a single financial reporting period. For payments received in advance of the satisfaction of performance obligations, revenue recognition is deferred until such time the performance obligations have been satisfied. In cases where we have not received payment despite satisfaction of our performance obligations, we accrue an estimate of the amount due in the period our performance obligations have been satisfied. For contracts with variable components, only amounts for which collection is probable are accrued. We generally act in a principal capacity, on our own behalf, in most of our contracts with customers. In such transactions, we recognize revenue and the related costs to provide our services on a gross basis in our financial statements. In some cases, we act in an agent capacity, deriving revenue through assisting other entities in transactions with our customers. In such transactions, we recognized revenue and the related costs to provide our services on a net basis in our financial statements. These transactions relate to our customers' use of various interchange and ATM/debit card networks. Based on our underlying contracts, ASU 2014-09 requires us to report network costs associated with debit card and ATM transactions netted against the related fees from such transactions. Previously, such network costs were reported as a component of other noninterest expense. For the three and six months periods ended June 30, 2018, gross interchange and debit card transaction fees totaled $401 thousand and $733 thousand , respectively while related network costs totaled $280 thousand and $467 thousand , respectively. On a net basis, we reported $121 thousand and $267 thousand as interchange and debit card transaction fees in the accompanying Consolidated Statement of Income for the three and six months periods ended June 30, 2018. For the three and six months periods ended June 30, 2017, we reported interchange and debit card transaction fees totaling $223 thousand and $416 thousand , respectively on a gross basis in the accompanying Consolidated Statement of Income while related network costs totaling $140 thousand and $227 thousand , respectively were reported in other operating expenses included as a component of other noninterest expense. ASU 2016-01 "Financial Instruments - Overall (Subtopic 825-10): Recognition of Financial Assets and Financial Liabilities, ("ASU 2016-01") makes targeted amendments to the guidance for recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 requires equity investments, other than equity method investments, to be measured at fair value with changes in fair value recognized in net income. The ASU requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption to reclassify the cumulative change in fair value of equity securities previously recognized in Accumulated Other Comprehensive Income. ASU 2016-01 became effective for the Company on January 1, 2018 and there was no adjustment to retained earnings. ASU 2016-01 also emphasizes the existing requirement to use exit prices to measure fair value for disclosure purposes and clarifies that entities should not make use of a practicability exception in determining the fair value of loans. Accordingly, we refined the calculation used to determine the disclosed fair value of our loans held for investment portfolio as part of adopting this standard. The refined calculation is disclosed Note 6 - Fair Value Disclosures. In February 2018, the FASB issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income; (“ASU 2018-02”). ASU 2018-02 amends ASC Topic 220 and allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (“Tax Reform Act”). Consequently, this amendment eliminates the stranded tax effects resulting from the Tax Reform Act and will improve the usefulness of information reported to financial statement users. However, because the amendments only related to the reclassification of the income tax effects of the Tax Reform Act, the underlying guidance that requires that the effects of the change in tax laws or rates be included in income from continuing operations is not affected. The guidance is effective for public companies for annual periods beginning on or after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. This amendment should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in U.S. federal corporate income tax rate in the Tax Reform Act is recognized. The Company early adopted this amendment in the fourth quarter of 2017 and reclassified $197 thousand from accumulated other comprehensive income to retained earnings for the stranded tax effects resulting from the Tax Reform Act. Recently Issued Accounting Pronouncements: During interim periods, the Company follows the accounting policies set forth in its annual audited financial statements for the year ended December 31, 2017 as filed with the Securities and Exchange Commission. The following is a summary of recent authoritative pronouncements not yet effective that could impact the accounting, reporting, and/or disclosure of financial information by the Company issued since December 31, 2017 . In February 2016, the FASB issued guidance that requires lessees to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability in ASU 2016-2: Leases (Topic 842). For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines. Lessor accounting is similar to the current model, but updated to align with certain changes to the lessee model and the new revenue recognition standard. Existing sale-leaseback guidance, including guidance for real estate, is replaced with a new model applicable to both lessees and lessors. The new guidance will be effective for public business entities for annual periods beginning after December 15, 2018 including interim periods within those fiscal years. The Company has several lease agreements, such as branch locations, which are currently considered operating leases, and therefore, not recognized on the Company’s consolidated statements of condition. The Company expects the new guidance will require these lease agreements to be recognized on the consolidated statements of condition as a right-of-use asset and a corresponding lease liability. Therefore, the Company’s preliminary evaluation indicates the provisions of ASU No. 2016-02 are expected to impact the Company’s consolidated statements of condition, along with our regulatory capital ratios. However, the Company continues to evaluate the extent of potential impact the new guidance will have on the Company’s consolidated financial statements. The Company is in the process of identifying a complete inventory of arrangements containing a lease and accumulating the lease data necessary to apply the amended guidance. In January 2018, the FASB issued ASU 2018-01, Leases (Topic 842) Land Easement Practical Expedient Transition to Topic 842 , an amendment to ASU 2016-2: Leases. The amendments in this Update permit an entity to elect an optional transition practical expedient to not evaluate under Topic 842 land easements that exist or expired before the entity’s adoption of Topic 842 and that were not previously accounted for as leases under Topic 840. An entity that elects this practical expedient should apply the practical expedient consistently to all of its existing or expired land easements that were not previously accounted for as leases under Topic 840. Once an entity adopts Topic 842, it should apply that Topic prospectively to all new (or modified) land easements to determine whether the arrangement should be accounted for as a lease. An entity that does not elect this practical expedient should evaluate all existing or expired land easements in connection with the adoption of the new lease requirements in Topic 842 to assess whether they meet the definition of a lease. An entity should continue to apply its current accounting policy for accounting for land easements that existed before the entity’s adoption of Topic 842. For example, if an entity currently accounts for certain land easements as leases under Topic 840, it should continue to account for those land easements as leases before its adoption of Topic 842. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in Update 2016-02, for which the company is currently evaluating the impact. In June 2016, FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The ASU changed the credit loss model on financial instruments measured at amortized cost, available for sale securities and certain purchased financial instruments. Credit losses on financial instruments measured at amortized cost will be determined using a current expected credit loss model which requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. Purchased financial assets with more-than-insignificant credit deterioration since origination ("PCD assets" which are currently named "PCI Loans") measured at amortized cost will have an allowance for credit losses established at acquisition as part of the purchase price. Subsequent increases or decreases to the allowance for credit losses on PCD assets will be recognized in the income statement. Interest income should be recognized on PCD assets based on the effective interest rate, determined excluding the discount attributed to credit losses at acquisition. Credit losses relating to available-for-sale debt securities will be recognized through an allowance for credit losses. The amount of the credit loss is limited to the amount by which fair value is below amortized cost of the available-for-sale debt security. The amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years for the Company and other SEC filers. Early adoption is permitted and if early adopted, all provisions must be adopted in the same period. The amendments should be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the period adopted. A prospective approach is required for securities with other than temporary impairment recognized prior to adoption. The Company is continuing its implementation efforts through its Company-wide implementation team. The implementation team meets periodically to discuss the latest developments and ensure progress is being made. The team also keeps current on evolving interpretations and industry practices related to ASU 2016-13 via webcasts, publications, conferences, and peer bank meetings. The team continues to evaluate and validate data resources and different loss methodologies. The Company’s preliminary evaluation indicates the provisions of ASU No. 2016-13 are expected to impact the Company’s consolidated financial statements, in particular an increase to the level of the reserve for credit losses. However, the Company continues to evaluate the extent of the potential impact. In January 2017, FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The ASU simplifies the subsequent measurement of goodwill and eliminates Step 2 from the goodwill impairment test. The Company should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value. The impairment charge is limited to the amount of goodwill allocated to that reporting unit. The amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect these amendments to have a material effect on its consolidated financial statements. In March 2017, FASB issued ASU No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Topic 310-20): Premium Amortization on Purchased Callable Debt Securities. The ASU shortens the amortization period for certain callable debt securities held at a premium. The premium on individual callable debt securities shall be amortized to the earliest call date. This guidance does not apply to securities for which prepayments are estimated on a large number of similar loans where prepayments are probable and reasonably estimable. The amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. This update should be adopted on a modified retrospective basis with a cumulative-effect adjustment to retained earnings on the date of adoption. The Company does not expect these amendments to have a material effect on its consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities , which amends the hedge accounting recognition and presentation requirements in Accounting Standards Codification (ASC) 815, Derivatives and Hedging . The goals of the ASU are to (1) improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities by better aligning the entity’s financial reporting for hedging relationships with those risk management activities and (2) reduce the complexity of and simplify the application of hedge accounting by preparers . The amendments will be effective for the Company for interim and annual periods beginning after December 15, 2018. The Company does not expect these amendments to have a material effect on its consolidated financial statements. As part of its Simplification Initiative, the FASB has issued (ASU) No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting . ASU No. 2018-07 expands the scope of Topic 718, Compensation-Stock Compensation (which previously only included payments to employees), to include share-based payment transactions for acquiring goods and services from non-employees. This required entities to apply the requirements of Topic 718 to non-employee awards, except for specific guidance on inputs to an option pricing model and the attribution of cost (i.e., the period of time over which share-based payment awards vest and the pattern of cost recognition over that period). Additionally, the amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in the grantor’s own operations by issuing share-based payment awards, and clarify that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer, or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers . The amendments are effective for fiscal years beginning after December 15, 2018, and for the interim periods within those years. The Company does not expect these amendments to have a material effect on its consolidated financial statements. | Recently Issued Not Yet Effective Accounting Pronouncements: The following is a summary of recent authoritative pronouncements not yet in effect that could impact the accounting, reporting, and/or disclosure of financial information by the Company. In January 2016, the FASB issued guidance that primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments in ASU No. 2016-1 - Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The guidance will be effective in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is evaluating the impact of this update on its financial statements. In February 2016, the FASB issued guidance that requires lessees to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability in ASU 2016-2: Leases (Topic 842). For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines. Lessor accounting is similar to the current model, but updated to align with certain changes to the lessee model and the new revenue recognition standard. Existing sale-leaseback guidance, including guidance for real estate, is replaced with a new model applicable to both lessees and lessors. The new guidance will be effective for public business entities for annual periods beginning after December 15, 2018 including interim periods within those fiscal years. The Company is evaluating the impact of this update on its financial statements. In January 2018, the FASB issued ASU 2018-01, Leases (Topic 842) Land Easement Practical Expedient Transition to Topic 842 , an amendment to ASU 2016-2: Leases. The amendments in this Update permit an entity to elect an optional transition practical expedient to not evaluate under Topic 842 land easements that exist or expired before the entity’s adoption of Topic 842 and that were not previously accounted for as leases under Topic 840. An entity that elects this practical expedient should apply the practical expedient consistently to all of its existing or expired land easements that were not previously accounted for as leases under Topic 840. Once an entity adopts Topic 842, it should apply that Topic prospectively to all new (or modified) land easements to determine whether the arrangement should be accounted for as a lease. An entity that does not elect this practical expedient should evaluate all existing or expired land easements in connection with the adoption of the new lease requirements in Topic 842 to assess whether they meet the definition of a lease. An entity should continue to apply its current accounting policy for accounting for land easements that existed before the entity’s adoption of Topic 842. For example, if an entity currently accounts for certain land easements as leases under Topic 840, it should continue to account for those land easements as leases before its adoption of Topic 842. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in Update 2016-02. In June 2016, FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The ASU changed the credit loss model on financial instruments measured at amortized cost, available for sale securities and certain purchased financial instruments. Credit losses on financial instruments measured at amortized cost will be determined using a current expected credit loss model which requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. Purchased financial assets with more-than-insignificant credit deterioration since origination ("PCD assets" which are currently named "PCI Loans") measured at amortized cost will have an allowance for credit losses established at acquisition as part of the purchase price. Subsequent increases or decreases to the allowance for credit losses on PCD assets will be recognized in the income statement. Interest income should be recognized on PCD assets based on the effective interest rate, determined excluding the discount attributed to credit losses at acquisition. Credit losses relating to available-for-sale debt securities will be recognized through an allowance for credit losses. The amount of the credit loss is limited to the amount by which fair value is below amortized cost of the available-for-sale debt security. The amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years for the Company and other SEC filers. Early adoption is permitted and if early adopted, all provisions must be adopted in the same period. The amendments should be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the period adopted. A prospective approach is required for securities with other than temporary impairment recognized prior to adoption. The Company is still reviewing the impact the adoption of this guidance will have on its financial statements. In January 2017, FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The ASU simplifies the subsequent measurement of goodwill and eliminates Step 2 from the goodwill impairment test. The Company should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value. The impairment charge is limited to the amount of goodwill allocated to that reporting unit. The amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In January 2017, FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . The ASU clarifies the definition of a business to assist with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments in this update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company does not expect these amendments to have a material effect on its financial statements. In March 2017, FASB issued ASU No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Topic 310-20): Premium Amortization on Purchased Callable Debt Securities. The ASU shortens the amortization period for certain callable debt securities In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities , which amends the In May 2014, the FASB issued guidance to change the recognition of revenue from contracts with customers in ASU No. 2014-9, Revenue from Contracts with Customers (Topic 606) . The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. The guidance will be effective for the Company for annual periods beginning after December 15, 2017, and interim periods within annual reporting periods beginning after December 15, 2017. The Company will apply the guidance using a full retrospective approach. The Company does not expect these amendments to have a material effect on its financial statements. |
Business Combination (Q2) (Tabl
Business Combination (Q2) (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Business Combinations [Abstract] | ||
Schedule of Allocation of Purchase Price to Fair Value of Net Assets Acquired | The following table details the financial impact of the transaction, including the allocation of the purchase price to the fair values of net assets assumed and goodwill recognized: Allocation of Purchase Price (in thousands) Total consideration in cash $ 1,183 Fair value of assets acquired and liabilities assumed: Cash and cash equivalents 133 Loans 24,073 Premises and equipment 2,839 Core deposit intangible 310 Prepaid and other assets 77 Deposits (26,888 ) Payables and other liabilities (21 ) Total fair value of net assets acquired 523 Goodwill $ 660 The following table details the financial impact of the merger, including the calculation of the purchase price, the allocation of the purchase price to the fair values of net assets assumed, and goodwill recognized: Calculation of Purchase Price Shares of SMBK common stock issued to Capstone shareholders as of November 1, 2017 2,908,094 Market price of SMBK common stock on November 1, 2017 $ 23.49 Estimated fair value of SMBK common stock issued (in thousands) 68,311 Estimated fair value of Capstone stock options (in thousands) 1,585 Cash consideration paid 15,826 Total consideration (in thousands) $ 85,722 Allocation of Purchase Price (in thousands) Total consideration above $ 85,722 Fair value of assets acquired and liabilities assumed: Cash and cash equivalents 16,810 Investment securities available for sale 51,638 Restricted investments 1,049 Loans 413,023 Premises and equipment 8,668 Bank owned life insurance 10,031 Core deposit intangible 5,530 Other real estate owned 410 Prepaid and other assets 6,360 Deposits (454,154 ) FHLB advances and other borrowings (4,887 ) Payables and other liabilities (6,803 ) Total fair value of net assets acquired 47,675 Goodwill $ 38,047 The following table details the financial impact of the merger, including the calculation of the purchase price, the allocation of the purchase price to the fair values of net assets assumed, and goodwill recognized: Calculation of Purchase Price Shares of SMBK common stock issued to TN Bancshares shareholders as of May 1, 2018 1,458,981 Market price of SMBK common stock on May 1, 2018 $ 23.85 Estimated fair value of SMBK common stock issued (in thousands) 34,797 Cash consideration paid 5 Total consideration (in thousands) $ 34,802 Allocation of Purchase Price (in thousands) Total consideration above $ 34,802 Fair value of assets acquired and liabilities assumed: Cash and cash equivalents 5,723 Investment securities available for sale 24,563 Restricted investments 464 Loans 180,490 Premises and equipment 9,470 Core deposit intangible 2,290 Other real estate owned 674 Prepaid and other assets 2,258 Deposits (202,272 ) FHLB advances and other borrowings (4,000 ) Payables and other liabilities (586 ) Total fair value of net assets acquired 19,074 Goodwill $ 15,728 | The following table details the financial impact of the transaction, including the allocation of the purchase price to the fair values of net assets assumed and goodwill recognized: Allocation of Purchase Price (in thousands) Total consideration in cash $ 1,183 Fair value of assets acquired and liabilities assumed: Cash and cash equivalents 133 Loans 24,073 Premises and equipment 2,839 Core deposit intangible 310 Prepaid and other assets 77 Deposits (26,888 ) Payables and other liabilities (21 ) Total fair value of net assets acquired 523 Goodwill $ 660 The following table details the financial impact of the merger, including the calculation of the purchase price, the allocation of the purchase price to the fair values of net assets assumed, and goodwill recognized: Calculation of Purchase Price Shares of SMBK common stock issued to Capstone shareholders as of November 1, 2017 2,908,094 Market price of SMBK common stock on November 1, 2017 $ 23.49 Estimated fair value of SMBK common stock issued (in thousands) 68,311 Estimated fair value of Capstone stock options (in thousands) 1,585 Cash consideration paid 15,826 Total consideration (in thousands) $ 85,722 Allocation of Purchase Price (in thousands) Total consideration above $ 85,722 Fair value of assets acquired and liabilities assumed: Cash and cash equivalents 16,810 Investment securities available for sale 51,638 Restricted investments 1,049 Loans 413,023 Premises and equipment 8,668 Bank owned life insurance 10,031 Core deposit intangible 5,530 Other real estate owned 410 Prepaid and other assets 6,360 Deposits (454,154 ) FHLB advances and other borrowings (4,887 ) Payables and other liabilities (6,803 ) Total fair value of net assets acquired 47,675 Goodwill $ 38,047 |
Earnings per share (Q2) (Tables
Earnings per share (Q2) (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Schedule of Earnings Per Share, Basic and Diluted | The following is a summary of the basic and diluted earnings per share for the three and six months ended June 30, 2018 and 2017 . Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Net income available to common shareholders $ 3,931,556 $ 1,648,286 $ 7,346,326 $ 3,097,138 Weighted average common shares outstanding 12,201,185 8,216,567 11,708,746 7,872,609 Effect of dilutive stock options 119,313 108,971 113,751 104,673 Diluted shares 12,320,498 8,325,538 11,822,497 7,977,282 Basic earnings per common share $ 0.32 $ 0.20 $ 0.63 $ 0.39 Diluted earnings per common share $ 0.32 $ 0.20 $ 0.62 $ 0.39 | The effect from the stock options on incremental shares from the assumed conversions for net income per share-basic and net income per share-diluted are presented below. There were antidilutive shares of 13,166 and 17,649 for the years ended December 31, 2017 and 2016 , respectively. (Dollars in thousands, except share amounts) 2017 2016 Basic earnings per share computation: Net income available to common stockholders $ 4,820 $ 4,777 Average common shares outstanding – basic 8,639,212 5,838,574 Basic earnings per share $ 0.56 $ 0.82 Diluted earnings per share computation: Net income available to common stockholders $ 4,820 $ 4,777 Average common shares outstanding – basic 8,639,212 5,838,574 Incremental shares from assumed conversions: Stock options 154,315 280,369 Average common shares outstanding - diluted 8,793,527 6,118,943 Diluted earnings per share $ 0.55 $ 0.78 |
Securities (Q2) (Tables)
Securities (Q2) (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||
Schedule of Available-For-Sale Securities Reconciliation | The amortized cost and fair value of securities available-for-sale at June 30, 2018 and December 31, 2017 are summarized as follows (in thousands): June 30, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Government-sponsored enterprises (GSEs) $ 29,137 $ — $ (1,009 ) $ 28,128 Municipal securities 15,896 8 (320 ) 15,584 Other debt securities 976 — (65 ) 911 Mortgage-backed securities (GSEs) 114,538 171 (2,755 ) 111,954 $ 160,547 $ 179 $ (4,149 ) $ 156,577 December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Government-sponsored enterprises (GSEs) $ 26,207 $ 1 $ (432 ) $ 25,776 Municipal securities 9,122 28 (147 ) 9,003 Other debt securities 974 — (24 ) 950 Mortgage-backed securities (GSEs) 117,263 136 (1,184 ) 116,215 $ 153,566 $ 165 $ (1,787 ) $ 151,944 | |
Investments Classified by Contractual Maturity Date | The amortized cost and estimated fair value of securities at June 30, 2018 , by contractual maturity for non-mortgage backed securities, are shown below (in thousands). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Fair Value Due in one year or less $ — $ — Due from one year to five years 21,554 20,901 Due from five years to ten years 13,995 13,366 Due after ten years 10,460 10,356 46,009 44,623 Mortgage-backed securities 114,538 111,954 $ 160,547 $ 156,577 | The amortized cost and estimated market value of securities at December 31, 2017 , by contractual maturity, are shown below (in thousands). Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Fair Due in one year or less $ 2,174 $ 2,175 Due from one year to five years 21,606 21,292 Due from five years to ten years 8,037 7,822 Due after ten years 4,486 4,440 36,303 35,729 Mortgage-backed securities 117,263 116,215 Total $ 153,566 $ 151,944 |
Schedule of Unrealized Loss on Investments | The following tables present the gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities available-for-sale have been in a continuous unrealized loss position, as of June 30, 2018 and December 31, 2017 (in thousands): As of June 30, 2018 Less than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses U.S. Government- sponsored enterprises (GSEs) $ 14,862 $ (425 ) $ 13,266 $ (584 ) $ 28,128 $ (1,009 ) Municipal securities 11,966 (182 ) 2,072 (138 ) 14,038 (320 ) Other debt securities — — 911 (65 ) 911 (65 ) Mortgage-backed securities (GSEs) 58,377 (1,654 ) 29,911 (1,101 ) 88,288 (2,755 ) $ 85,205 $ (2,261 ) $ 46,160 $ (1,888 ) $ 131,365 $ (4,149 ) As of December 31, 2017 Less than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses U.S. Government- sponsored enterprises (GSEs) $ 1,358 $ (1 ) $ 13,420 $ (431 ) $ 14,778 $ (432 ) Municipal securities 3,418 (43 ) 2,112 (104 ) 5,530 (147 ) Other debt securities 950 (24 ) — — 950 (24 ) Mortgage-backed securities (GSEs) 61,332 (407 ) 35,048 (777 ) 96,380 (1,184 ) $ 67,058 $ (475 ) $ 50,580 $ (1,312 ) $ 117,638 $ (1,787 ) | The following tables present the gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities available-for-sale have been in a continuous unrealized loss position, as of December 31, 2017 and 2016 (in thousands): As of December 31, 2017 Less than 12 Months 12 Months or Greater Total Fair Gross Fair Gross Fair Gross U.S. Government- sponsored enterprises (GSEs) $ 1,358 $ (1 ) $ 13,420 $ (431 ) $ 14,778 $ (432 ) Municipal securities 3,418 (43 ) 2,112 (104 ) 5,530 (147 ) Other debt securities 950 (24 ) — — 950 (24 ) Mortgage-backed securities 61,332 (407 ) 35,048 (777 ) 96,380 (1,184 ) Total $ 67,058 $ (475 ) $ 50,580 $ (1,312 ) $ 117,638 $ (1,787 ) As of December 31, 2016 Less than 12 Months 12 Months or Greater Total Fair Gross Fair Gross Fair Gross U.S. Government- sponsored enterprises (GSEs) $ 14,702 $ (564 ) $ — $ — $ 14,702 $ (564 ) Municipal securities 6,368 (179 ) — — 6,368 (179 ) Mortgage-backed securities 67,063 (690 ) 8,948 (400 ) 76,011 (1,090 ) Total $ 88,133 $ (1,433 ) $ 8,948 $ (400 ) $ 97,081 $ (1,833 ) |
Loans and Allowance for Loan 50
Loans and Allowance for Loan Losses (Q2) (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | ||
Schedule of Accounts, Notes, Loans and Financing Receivable | At June 30, 2018 and December 31, 2017 , loans are summarized as follows (in thousands): June 30, 2018 December 31, 2017 PCI Loans 1 All Other Loans Total PCI Loans 1 All Other Loans Total Commercial real estate $ 18,474 $ 727,390 $ 745,864 $ 17,903 $ 625,085 $ 642,988 Consumer real estate 6,987 348,889 355,876 7,450 286,007 293,457 Construction and land development 5,690 173,741 179,431 5,120 130,289 135,409 Commercial and industrial 821 278,950 279,771 858 237,229 238,087 Consumer and other 686 13,807 14,493 1,463 11,854 13,317 Total loans 32,658 1,542,777 1,575,435 32,794 1,290,464 1,323,258 Less: Allowance for loan losses (19 ) (7,055 ) (7,074 ) (16 ) (5,844 ) (5,860 ) Loans, net $ 32,639 $ 1,535,722 $ 1,568,361 $ 32,778 $ 1,284,620 $ 1,317,398 1 Purchased Credit Impaired loans (“PCI loans”) are loans with evidence of credit deterioration at purchase. | At December 31, 2017 and 2016 , loans consisted of the following (in thousands): December 31, 2017 December 31, 2016 PCI All Other Total PCI All Other Total Commercial real estate $ 17,903 $ 625,085 $ 642,988 $ 14,943 $ 400,265 $ 415,208 Consumer real estate 7,450 286,007 293,457 9,004 178,798 187,802 Construction and land development 5,120 130,289 135,409 1,678 116,191 117,869 Commercial and industrial 858 237,229 238,087 1,568 83,454 85,022 Consumer and other 1,463 11,854 13,317 — 7,475 7,475 Total loans 32,794 1,290,464 1,323,258 27,193 786,183 813,376 Less: Allowance for loan losses (16 ) (5,844 ) (5,860 ) — (5,105 ) (5,105 ) Loans, net $ 32,778 $ 1,284,620 $ 1,317,398 $ 27,193 $ 781,078 $ 808,271 |
Schedule of Impaired and Performing Loans Receivable | The composition of loans by loan classification for impaired and performing loan status at June 30, 2018 and December 31, 2017 , is summarized in the tables below (in thousands): June 30, 2018 Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Performing loans $ 726,356 $ 347,893 $ 173,194 $ 278,431 $ 13,698 $ 1,539,572 Impaired loans 1,034 996 547 519 109 3,205 727,390 348,889 173,741 278,950 13,807 1,542,777 PCI loans 18,474 6,987 5,690 821 686 32,658 Total $ 745,864 $ 355,876 $ 179,431 $ 279,771 $ 14,493 $ 1,575,435 December 31, 2017 Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Performing loans $ 624,638 $ 284,585 $ 129,742 $ 237,016 $ 11,842 $ 1,287,823 Impaired loans 447 1,422 547 213 12 2,641 625,085 286,007 130,289 237,229 11,854 1,290,464 PCI loans 17,903 7,450 5,120 858 1,463 32,794 Total loans $ 642,988 $ 293,457 $ 135,409 $ 238,087 $ 13,317 $ 1,323,258 | The following tables show the allowance for loan losses allocation by loan classification for impaired and performing loans as of December 31, 2017 and 2016 (amounts in thousands): December 31, 2017 Construction Commercial Consumer Commercial Consumer and Land and and Real Estate Real Estate Development Industrial Other Total Performing loans $ 2,444 $ 1,340 $ 521 $ 890 $ 204 $ 5,399 PCI loans 16 — — — — 16 Impaired loans 5 256 — 172 12 445 Total $ 2,465 $ 1,596 $ 521 $ 1,062 $ 216 $ 5,860 December 31, 2016 Construction Commercial Consumer Commercial Consumer and Land and and Real Estate Real Estate Development Industrial Other Total Performing loans $ 2,369 $ 1,382 $ 717 $ 516 $ 117 $ 5,101 PCI Loans — — — — — — Impaired loans — — — 4 — 4 Total $ 2,369 $ 1,382 $ 717 $ 520 $ 117 $ 5,105 |
Schedule of Allowance for Loan Losses for Impaired and Performing Loans Receivable | The following tables show the allowance for loan losses allocation by loan classification for impaired, PCI, and performing loans as of June 30, 2018 and December 31, 2017 (in thousands): June 30, 2018 Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Performing loans $ 3,116 $ 1,491 $ 744 $ 1,145 $ 224 $ 6,720 PCI loans 19 — — — — 19 Impaired loans — 37 — 222 76 335 Total $ 3,135 $ 1,528 $ 744 $ 1,367 $ 300 $ 7,074 December 31, 2017 Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Performing loans $ 2,444 $ 1,340 $ 521 $ 890 $ 204 $ 5,399 PCI loans 16 — — — — 16 Impaired loans 5 256 — 172 12 445 Total $ 2,465 $ 1,596 $ 521 $ 1,062 $ 216 $ 5,860 | The following tables show the allowance for loan losses allocation by loan classification for impaired and performing loans as of December 31, 2017 and 2016 (amounts in thousands): December 31, 2017 Construction Commercial Consumer Commercial Consumer and Land and and Real Estate Real Estate Development Industrial Other Total Performing loans $ 2,444 $ 1,340 $ 521 $ 890 $ 204 $ 5,399 PCI loans 16 — — — — 16 Impaired loans 5 256 — 172 12 445 Total $ 2,465 $ 1,596 $ 521 $ 1,062 $ 216 $ 5,860 December 31, 2016 Construction Commercial Consumer Commercial Consumer and Land and and Real Estate Real Estate Development Industrial Other Total Performing loans $ 2,369 $ 1,382 $ 717 $ 516 $ 117 $ 5,101 PCI Loans — — — — — — Impaired loans — — — 4 — 4 Total $ 2,369 $ 1,382 $ 717 $ 520 $ 117 $ 5,105 |
Schedule of Financing Receivable Allowance for Credit Losses | The following tables detail the changes in the allowance for loan losses for the six month period ending June 30, 2018 and year ending December 31, 2017 , by loan classification (in thousands): June 30, 2018 Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Beginning balance $ 2,465 $ 1,596 $ 521 $ 1,062 $ 216 $ 5,860 Loans charged off (38 ) (25 ) — (78 ) (101 ) (242 ) Recoveries of loans charged off — 50 5 56 40 151 Provision (reallocation) charged to expense 708 (93 ) 218 327 145 1,305 Ending balance $ 3,135 $ 1,528 $ 744 $ 1,367 $ 300 $ 7,074 December 31, 2017 Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Beginning balance $ 2,369 $ 1,382 $ 717 $ 520 $ 117 $ 5,105 Loans charged off — (111 ) — (24 ) (141 ) (276 ) Recoveries of charge-offs 8 99 13 67 61 248 Provision (reallocation) charged to expense 88 226 (209 ) 499 179 783 Ending balance $ 2,465 $ 1,596 $ 521 $ 1,062 $ 216 $ 5,860 | The following tables detail the changes in the allowance for loan losses for the year ending December 31, 2017 and December 31, 2016 , by loan classification (amounts in thousands): December 31, 2017 Commercial Consumer Construction Commercial Consumer Total Beginning balance $ 2,369 $ 1,382 $ 717 $ 520 $ 117 $ 5,105 Loans charged off — (111 ) — (24 ) (141 ) (276 ) Recoveries of loans charged off 8 99 13 67 61 248 Provision (reallocation) charged to operating expense 88 226 (209 ) 499 179 783 Ending balance $ 2,465 $ 1,596 $ 521 $ 1,062 $ 216 $ 5,860 December 31, 2016 Commercial Consumer Construction Commercial Consumer Total Beginning balance $ 1,906 $ 1,015 $ 627 $ 777 $ 29 $ 4,354 Loans charged off — (102 ) (14 ) (35 ) (155 ) (306 ) Recoveries of loans charged off 45 76 22 58 68 269 Provision (reallocation) charged to operating expense 418 393 82 (280 ) 175 788 Ending balance $ 2,369 $ 1,382 $ 717 $ 520 $ 117 $ 5,105 |
Financing Receivable Credit Quality Indicators | The following tables outline the amount of each loan classification and the amount categorized into each risk rating as of June 30, 2018 and December 31, 2017 (in thousands): June 30, 2018 Non PCI Loans Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Pass $ 724,763 $ 343,407 $ 172,972 $ 277,384 $ 13,184 $ 1,531,710 Watch 1,604 3,168 62 1,035 123 5,992 Special mention — 949 160 35 363 1,507 Substandard 1,023 1,365 547 483 111 3,529 Doubtful — — — 13 26 39 Total $ 727,390 $ 348,889 $ 173,741 $ 278,950 $ 13,807 $ 1,542,777 PCI Loans Pass $ 14,494 $ 4,558 $ 3,973 $ 210 $ 565 $ 23,800 Watch 1,513 898 653 2 18 3,084 Special mention 1,393 575 716 153 17 2,854 Substandard 1,074 956 348 456 86 2,920 Doubtful — — — — — — Total $ 18,474 $ 6,987 $ 5,690 $ 821 $ 686 $ 32,658 Total loans $ 745,864 $ 355,876 $ 179,431 $ 279,771 $ 14,493 $ 1,575,435 December 31, 2017 Non PCI Loans Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Pass $ 616,028 $ 279,464 $ 129,359 $ 233,942 $ 11,624 $ 1,270,417 Watch 7,673 2,543 383 3,007 62 13,668 Special mention 1,006 2,627 — 64 155 3,852 Substandard 378 1,159 547 157 — 2,241 Doubtful — 214 — 59 13 286 Total $ 625,085 $ 286,007 $ 130,289 $ 237,229 $ 11,854 $ 1,290,464 PCI Loans Pass $ 14,386 $ 4,151 $ 4,134 $ 68 $ 819 $ 23,558 Watch 261 1,345 649 120 262 2,637 Special mention — 456 — 58 24 538 Substandard 3,084 1,192 337 588 107 5,308 Doubtful 172 306 — 24 251 753 Total $ 17,903 $ 7,450 $ 5,120 $ 858 $ 1,463 $ 32,794 Total loans $ 642,988 $ 293,457 $ 135,409 $ 238,087 $ 13,317 $ 1,323,258 | The following tables outline the amount of each loan classification and the amount categorized into each risk rating as of December 31, 2017 and 2016 (amounts in thousands): Non PCI Loans December 31, 2017 Commercial Consumer Construction Commercial Consumer Total Pass $ 616,028 $ 279,464 $ 129,359 $ 233,942 $ 11,624 $ 1,270,417 Watch 7,673 2,543 383 3,007 62 13,668 Special mention 1,006 2,627 — 64 155 3,852 Substandard 378 1,159 547 157 — 2,241 Doubtful — 214 — 59 13 286 Total $ 625,085 $ 286,007 $ 130,289 $ 237,229 $ 11,854 $ 1,290,464 PCI Loans December 31, 2017 Commercial Consumer Construction Commercial Consumer Total Pass $ 14,386 $ 4,151 $ 4,134 $ 68 $ 819 $ 23,558 Watch 261 1,345 649 120 262 2,637 Special mention — 456 — 58 24 538 Substandard 3,084 1,192 337 588 107 5,308 Doubtful 172 306 — 24 251 753 Total $ 17,903 $ 7,450 $ 5,120 $ 858 $ 1,463 $ 32,794 Total loans $ 642,988 $ 293,457 $ 135,409 $ 238,087 $ 13,317 $ 1,323,258 Non PCI Loans December 31, 2016 Commercial Consumer Construction Commercial Consumer Total Pass $ 399,505 $ 177,466 $ 115,237 $ 82,992 $ 7,238 $ 782,438 Watch 640 550 89 252 — 1,531 Special mention — 104 — — 237 341 Substandard 120 678 865 210 — 1,873 Doubtful — — — — — — Total $ 400,265 $ 178,798 $ 116,191 $ 83,454 $ 7,475 $ 786,183 PCI Loans December 31, 2016 Commercial Consumer Construction Commercial Consumer Total Pass $ 11,836 $ 6,811 $ 1,019 $ 1,507 $ — $ 21,173 Watch 1,045 1,577 645 22 — 3,289 Special mention — — — 12 — 12 Substandard 2,062 616 14 — — 2,692 Doubtful — — — 27 — 27 Total $ 14,943 $ 9,004 $ 1,678 $ 1,568 $ — $ 27,193 Total loans $ 415,208 $ 187,802 $ 117,869 $ 85,022 $ 7,475 $ 813,376 |
Past Due Financing Receivables | The following tables present the aging of the recorded investment in loans as of June 30, 2018 and December 31, 2017 (in thousands): June 30, 2018 30-89 Days Past Due and Accruing Past Due 90 Days or More and Accruing Nonaccrual Total Past Due and NonAccrual PCI Loans Current Loans Total Loans Commercial real estate $ 2,628 $ 82 $ 6 $ 2,716 $ 18,474 $ 724,674 $ 745,864 Consumer real estate 701 76 463 1,240 6,987 347,649 355,876 Construction and land development 403 338 547 1,288 5,690 172,453 179,431 Commercial and industrial 647 113 430 1,190 821 277,760 279,771 Consumer and other 189 58 92 339 686 13,468 14,493 Total $ 4,568 $ 667 $ 1,538 $ 6,773 $ 32,658 $ 1,536,004 $ 1,575,435 December 31, 2017 30-89 Days Past Due and Accruing Past Due 90 Days or More and Accruing Nonaccrual Total Past Due and NonAccrual PCI Loans Current Loans Total Loans Commercial real estate $ 517 $ 728 $ 128 $ 1,373 $ 17,903 $ 623,712 $ 642,988 Consumer real estate 963 33 991 1,987 7,450 284,020 293,457 Construction and land development 65 326 547 938 5,120 129,351 135,409 Commercial and industrial 286 131 85 502 858 236,727 238,087 Consumer and other 165 291 13 469 1,463 11,385 13,317 Total $ 1,996 $ 1,509 $ 1,764 $ 5,269 $ 32,794 $ 1,285,195 $ 1,323,258 | The following tables present the aging of the recorded investment in loans and leases as of December 31, 2017 and 2016 (amounts in thousands): December 31, 2017 30-89 Days Past Due 90 Nonaccrual Total PCI Loans Current Total Commercial real estate $ 517 $ 728 $ 128 $ 1,373 $ 17,903 $ 623,712 $ 642,988 Consumer real estate 963 33 991 1,987 7,450 284,020 293,457 Construction and land development 65 326 547 938 5,120 129,351 135,409 Commercial and industrial 286 131 85 502 858 236,727 238,087 Consumer and other 165 291 13 469 1,463 11,385 13,317 Total $ 1,996 $ 1,509 $ 1,764 $ 5,269 $ 32,794 $ 1,285,195 $ 1,323,258 December 31, 2016 30-89 Days Past Due 90 Nonaccrual Total PCI Current Total Commercial real estate $ 395 $ — $ — $ 395 $ 14,943 $ 399,870 $ 415,208 Consumer real estate 695 699 386 1,780 9,004 177,018 187,802 Construction and land development 690 — 865 1,555 1,678 114,636 117,869 Commercial and industrial 257 — 164 421 1,568 83,033 85,022 Consumer and other 17 — — 17 — 7,458 7,475 Total $ 2,054 $ 699 $ 1,415 $ 4,168 $ 27,193 $ 782,015 $ 813,376 |
Impaired Financing Receivables | The following is an analysis of the impaired loan portfolio, excluding PCI loans, detailing the related allowance recorded as of June 30, 2018 and December 31, 2017 (in thousands): For the six months ended At June 30, 2018 June 30, 2018 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Impaired loans without a valuation allowance: Commercial real estate $ 1,034 $ 1,043 $ — $ 670 $ 15 Consumer real estate 793 823 — 699 12 Construction and land development 547 547 — 547 — Commercial and industrial 81 83 — 58 3 Consumer and other 16 16 — 5 — 2,471 2,512 — 1,979 30 Impaired loans with a valuation allowance: Commercial real estate — — — 8 — Consumer real estate 203 216 37 642 11 Construction and land development — — — — — Commercial and industrial 438 440 222 257 5 Consumer and other 93 95 76 72 2 734 751 335 979 18 PCI loans: Commercial real estate 27 127 19 5 3 Total impaired loans $ 3,232 $ 3,390 $ 354 $ 2,963 $ 51 For the year ended At December 31, 2017 December 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Impaired loans without a valuation allowance: Commercial real estate $ 424 $ 454 $ — $ 204 $ 44 Consumer real estate 415 420 — 401 16 Construction and land development 547 547 — 628 — Commercial and industrial 41 41 — 44 3 Consumer and other — — — — — 1,427 1,462 — 1,277 63 Impaired loans with a valuation allowance: Commercial real estate 23 23 5 5 1 Consumer real estate 1,007 1,033 256 601 38 Construction and land development — — — — — Commercial and industrial 172 172 172 117 10 Consumer and other 12 13 12 2 1 1,214 1,241 445 725 50 PCI loans: Commercial real estate 16 123 16 3 16 Total impaired loans $ 2,657 $ 2,826 $ 461 $ 2,005 $ 129 | The following is an analysis of the impaired loan portfolio detailing the related allowance recorded as of and for the years ended December 31, 2017 and 2016 (amounts in thousands): For the year ended At December 31, 2017 December 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Impaired loans without a valuation allowance: Non PCI Loans: Commercial real estate $ 424 $ 454 $ — $ 204 $ 44 Consumer real estate 415 420 — 401 16 Construction and land development 547 547 — 628 — Commercial and industrial 41 41 — 44 3 Consumer and other — — — — — 1,427 1,462 — 1,277 63 PCI loans: None in 2017 Impaired loans with a valuation allowance: Non PCI Loans: Commercial real estate 23 23 5 5 1 Consumer real estate 1,007 1,033 256 601 38 Construction and land development — — — — — Commercial and industrial 172 172 172 117 10 Consumer and other 12 13 12 2 1 1,214 1,241 445 725 50 PCI loans: Commercial real estate 16 123 16 3 16 Total impaired loans $ 2,657 $ 2,826 $ 461 $ 2,005 $ 129 For the year ended At December 31, 2016 December 31, 2016 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Impaired loans without a valuation allowance: Non PCI Loans: Commercial real estate $ 119 $ 119 $ — $ 1,311 $ 73 Consumer real estate 821 849 — 2,334 100 Construction and land development 865 865 — 967 3 Commercial and industrial 46 46 — 47 4 Consumer and other — — — — — 1,851 1,879 — 4,659 180 PCI loans: None in 2016 Impaired loans with a valuation allowance: Non PCI Loans: Commercial real estate — — — — — Consumer real estate — — — — — Construction and land development — — — — — Commercial and industrial 164 243 4 306 70 Consumer and other — — — — — 164 243 4 306 70 PCI loans: None in 2016 Total impaired loans $ 2,015 $ 2,122 $ 4 $ 4,965 $ 250 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period, Carrying Amount of Loans | The Company has acquired loans which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of those loans as of is as follows (in thousands): June 30, 2018 December 31, 2017 Commercial real estate $ 25,700 $ 23,366 Consumer real estate 9,620 10,764 Construction and land development 6,793 6,285 Commercial and industrial 2,973 1,452 Consumer and other 1,014 1,710 Total loans 46,100 43,577 Less remaining purchase discount (13,442 ) (10,783 ) Total loans, net of purchase discount 32,658 32,794 Less: Allowance for loan losses (19 ) (16 ) Carrying amount, net of allowance $ 32,639 $ 32,778 | The Company has acquired loans which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of those loans at for the years ended December 31, 2017 and 2016 is as follows (in thousands): 2017 2016 Commercial real estate $ 23,366 $ 18,473 Consumer real estate 10,764 12,111 Construction and land development 6,285 2,553 Commercial and industrial 1,452 2,482 Consumer and other 1,710 — Total loans $ 43,577 $ 35,619 Less remaining purchase discount (10,783 ) (8,426 ) Total, gross 32,794 27,193 Less: Allowance for loan losses (16 ) — Carrying amount, net of allowance $ 32,778 $ 27,193 |
Schedule of Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement | Activity related to the accretable yield on loans acquired with deteriorated credit quality is as follows for the three and six months period ended June 30, 2018 and 2017 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Accretable yield, beginning of period $ 7,780 $ 8,482 $ 9,287 $ 8,950 Additions 1,292 — 1,292 — Accretion income (1,928 ) (973 ) (3,029 ) (1,670 ) Reclassification to accretable 120 366 382 610 Other changes, net (58 ) 600 (726 ) 585 Accretable yield $ 7,206 $ 8,475 $ 7,206 $ 8,475 | The following is a summary of the accretable discount on acquired loans for the years ended December 31, 2017 and 2016 (in thousands): 2017 2016 Accretable yield, beginning of period $ 8,950 $ 10,217 Additions 2,581 — Accretion income (4,217 ) (2,588 ) Reclassification from nonaccretable 926 1,585 Other changes, net 1,047 (264 ) Accretable yield, end of period $ 9,287 $ 8,950 |
Schedule of Certain Loans Acquired Accounted For As Debt Securities Acquired During Period | Purchased credit impaired loans acquired from Southern Community Bank during the three and six months period ended June 30, 2018 for which it was probable at acquisition that all contractually required payments would not be collected are as follows (in thousands): Three and Six Months Ended June 30, 2018 Contractual principal and interest at acquisition $ 15,133 Nonaccretable difference 5,302 Expected cash flows at acquisition 9,831 Accretable yield 1,292 Fair value of purchased credit impaired loans $ 8,539 | A summary of activity in loans to related parties is as follows (in thousands): 2017 2016 Balance, beginning of year $ 12,999 $ 10,851 Disbursements 14,533 855 Removal of credit lines — (1,153 ) Changes in ownership — 4,830 Repayments (9,202 ) (2,384 ) Balance, end of year $ 18,330 $ 12,999 |
Commitments and Contingent Li51
Commitments and Contingent Liabilities (Q2) (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Other Commitments | A summary of the Bank’s total contractual amount for all off-balance sheet commitments at June 30, 2018 is as follows: Commitments to extend credit $ 299.6 million Standby letters of credit $ 3.7 million | A summary of the Company's total contractual amount for all off-balance sheet commitments at December 31, 2017 is as follows: Commitments to extend credit 292.8 million Standby letters of credit, issued by the Company 5.5 million |
Fair Value Disclosures (Q2) (Ta
Fair Value Disclosures (Q2) (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | ||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Assets and liabilities recorded at fair value on a recurring basis are as follows (in thousands): Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Debt securities available-for-sale: U.S. Government-sponsored enterprises (GSEs) $ 28,128 $ — $ 28,128 $ — Mortgage-backed securities 111,954 — 111,954 — Other debt securities 911 — 911 — Municipal securities 15,584 — 15,584 — Total securities available-for-sale $ 156,577 $ — $ 156,577 $ — Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Debt securities available-for-sale: U.S. Government-sponsored enterprises (GSEs) $ 25,776 $ — $ 25,776 $ — Mortgage-backed securities 116,215 — 116,215 — Other debt securities 950 — 950 — Municipal securities 9,003 — 9,003 — Total securities available-for-sale $ 151,944 $ — $ 151,944 $ — | Assets recorded at fair value on a recurring basis are as follows, in thousands Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Securities available-for-sale: U.S. Government-sponsored enterprises (GSEs) $ 25,776 $ — $ 25,776 $ — Municipal securities 9,003 — 9,003 — Other debt securities 950 — 950 — Mortgage-backed securities 116,215 — 116,215 — Total securities available-for-sale $ 151,944 $ — $ 151,944 $ — Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Securities available-for-sale: U.S. Government-sponsored enterprises (GSEs) $ 17,723 $ — $ 17,723 $ — Municipal securities 8,019 — 8,019 — Mortgage-backed securities 103,680 — 103,680 — Total securities available-for-sale $ 129,422 $ — $ 129,422 $ — |
Fair Value, Assets and Liabilities Measured on Non-Recurring Basis | The following tables present the financial instruments carried on the consolidated balance sheets by caption and by level in the fair value hierarchy, for which a nonrecurring change in fair value has been recorded (in thousands): Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Impaired loans $ 407 $ — $ — $ 407 Foreclosed assets 3,524 — — 3,524 Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Impaired loans $ 769 $ — $ — $ 769 Foreclosed assets 3,254 — — 3,254 For Level 3 assets measured at fair value on a non-recurring basis as of March 31, 2018 and December 31, 2017, the significant unobservable inputs used in the fair value measurements are presented below (in thousands). Balance as of Valuation Significant Other Weighted Impaired loans $ 407 Appraisal and Cashflow Appraisal and Cashflow Discounts 47 % Foreclosed assets 3,524 Appraisal Appraisal Discounts 19 % Balance as of Valuation Significant Other Weighted Impaired loans $ 769 Appraisal Appraisal Discounts 36 % Foreclosed assets 3,254 Appraisal Appraisal Discounts 18 % | The following tables present the financial instruments carried on the consolidated balance sheets by caption and by level in the fair value hierarchy, for which a nonrecurring change in fair value has been recorded (in thousands): Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Impaired loans $ 769 $ — $ — $ 769 Foreclosed assets 3,254 — — 3,254 Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Impaired loans $ 239 $ — $ — $ 239 Foreclosed assets 2,386 — — 2,386 |
Fair Value, by Balance Sheet Grouping | The carrying amount and estimated fair value of the Company’s financial instruments at June 30, 2018 and December 31, 2017 are as follows (in thousands): June 30, 2018 Fair Value Measurements Using Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value Assets: Cash and cash equivalents $ 170,235 170,235 — — $ 170,235 Securities available-for-sale 156,577 — 156,577 — 156,577 Restricted investments 8,273 N/A N/A N/A N/A Loans, net 1,568,361 — — 1,569,916 1,569,916 Liabilities: Noninterest-bearing demand deposits 301,318 — 301,318 — 301,318 Interest-bearing demand deposits 246,942 — 246,942 — 246,942 Money Market and Savings deposits 632,518 — 632,518 — 632,518 Time deposits 535,879 — 537,006 — 537,006 Securities sold under agreements to repurchase 18,635 — 18,635 — 18,635 Federal Home Loan Bank advances and other borrowings 72,040 — 72,040 — 72,040 December 31, 2017 Fair Value Measurements Using Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value Assets: Cash and cash equivalents $ 113,027 113,027 — — $ 113,027 Securities available-for-sale 151,944 — 151,944 — 151,944 Restricted investments 6,431 N/A N/A N/A N/A Loans, net 1,317,398 — — 1,292,303 1,292,303 Liabilities: Noninterest-bearing demand deposits 220,520 — 220,520 — 250,520 Interest-bearing demand deposits 231,644 — 231,644 — 231,644 Money Market and Savings deposits 543,645 — 543,645 — 543,645 Time deposits 442,774 — 443,547 — 443,547 Securities sold under agreements to repurchase 24,055 — 24,055 — 24,055 Federal Home Loan Bank advances and other borrowings 43,600 — 43,600 — 43,600 | The carrying amount and estimated fair value of the Company’s financial instruments at December 31, 2017 and December 31, 2016 are as follows (in thousands): December 31, 2017 December 31, 2016 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets: Cash and cash equivalents $ 113,027 $ 113,027 $ 68,748 $ 68,748 Securities available for sale 151,944 151,944 129,422 129,422 Restricted investments 6,431 N/A 5,628 N/A Loans, net 1,317,398 1,292,303 808,271 803,057 Liabilities: Noninterest-bearing demand deposits 220,520 220,520 153,483 153,483 Interest-bearing demand deposits 231,644 231,644 162,702 162,702 Savings deposits 543,645 543,645 274,605 274,605 Time deposits 442,774 443,547 316,275 316,734 Securities sold under agreements to repurchase 24,055 24,055 26,622 26,622 Federal Home Loan Bank advances and other borrowings 43,600 43,600 18,505 18,505 |
Business Combination (FY) (Tabl
Business Combination (FY) (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Business Combinations [Abstract] | ||
Schedule of Business Acquisitions, by Acquisition | The following table details the financial impact of the transaction, including the allocation of the purchase price to the fair values of net assets assumed and goodwill recognized: Allocation of Purchase Price (in thousands) Total consideration in cash $ 1,183 Fair value of assets acquired and liabilities assumed: Cash and cash equivalents 133 Loans 24,073 Premises and equipment 2,839 Core deposit intangible 310 Prepaid and other assets 77 Deposits (26,888 ) Payables and other liabilities (21 ) Total fair value of net assets acquired 523 Goodwill $ 660 The following table details the financial impact of the merger, including the calculation of the purchase price, the allocation of the purchase price to the fair values of net assets assumed, and goodwill recognized: Calculation of Purchase Price Shares of SMBK common stock issued to Capstone shareholders as of November 1, 2017 2,908,094 Market price of SMBK common stock on November 1, 2017 $ 23.49 Estimated fair value of SMBK common stock issued (in thousands) 68,311 Estimated fair value of Capstone stock options (in thousands) 1,585 Cash consideration paid 15,826 Total consideration (in thousands) $ 85,722 Allocation of Purchase Price (in thousands) Total consideration above $ 85,722 Fair value of assets acquired and liabilities assumed: Cash and cash equivalents 16,810 Investment securities available for sale 51,638 Restricted investments 1,049 Loans 413,023 Premises and equipment 8,668 Bank owned life insurance 10,031 Core deposit intangible 5,530 Other real estate owned 410 Prepaid and other assets 6,360 Deposits (454,154 ) FHLB advances and other borrowings (4,887 ) Payables and other liabilities (6,803 ) Total fair value of net assets acquired 47,675 Goodwill $ 38,047 The following table details the financial impact of the merger, including the calculation of the purchase price, the allocation of the purchase price to the fair values of net assets assumed, and goodwill recognized: Calculation of Purchase Price Shares of SMBK common stock issued to TN Bancshares shareholders as of May 1, 2018 1,458,981 Market price of SMBK common stock on May 1, 2018 $ 23.85 Estimated fair value of SMBK common stock issued (in thousands) 34,797 Cash consideration paid 5 Total consideration (in thousands) $ 34,802 Allocation of Purchase Price (in thousands) Total consideration above $ 34,802 Fair value of assets acquired and liabilities assumed: Cash and cash equivalents 5,723 Investment securities available for sale 24,563 Restricted investments 464 Loans 180,490 Premises and equipment 9,470 Core deposit intangible 2,290 Other real estate owned 674 Prepaid and other assets 2,258 Deposits (202,272 ) FHLB advances and other borrowings (4,000 ) Payables and other liabilities (586 ) Total fair value of net assets acquired 19,074 Goodwill $ 15,728 | The following table details the financial impact of the transaction, including the allocation of the purchase price to the fair values of net assets assumed and goodwill recognized: Allocation of Purchase Price (in thousands) Total consideration in cash $ 1,183 Fair value of assets acquired and liabilities assumed: Cash and cash equivalents 133 Loans 24,073 Premises and equipment 2,839 Core deposit intangible 310 Prepaid and other assets 77 Deposits (26,888 ) Payables and other liabilities (21 ) Total fair value of net assets acquired 523 Goodwill $ 660 The following table details the financial impact of the merger, including the calculation of the purchase price, the allocation of the purchase price to the fair values of net assets assumed, and goodwill recognized: Calculation of Purchase Price Shares of SMBK common stock issued to Capstone shareholders as of November 1, 2017 2,908,094 Market price of SMBK common stock on November 1, 2017 $ 23.49 Estimated fair value of SMBK common stock issued (in thousands) 68,311 Estimated fair value of Capstone stock options (in thousands) 1,585 Cash consideration paid 15,826 Total consideration (in thousands) $ 85,722 Allocation of Purchase Price (in thousands) Total consideration above $ 85,722 Fair value of assets acquired and liabilities assumed: Cash and cash equivalents 16,810 Investment securities available for sale 51,638 Restricted investments 1,049 Loans 413,023 Premises and equipment 8,668 Bank owned life insurance 10,031 Core deposit intangible 5,530 Other real estate owned 410 Prepaid and other assets 6,360 Deposits (454,154 ) FHLB advances and other borrowings (4,887 ) Payables and other liabilities (6,803 ) Total fair value of net assets acquired 47,675 Goodwill $ 38,047 |
Securities (FY) (Tables)
Securities (FY) (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale Securities | The amortized cost and fair value of securities available-for-sale at December 31, 2017 and 2016 are summarized as follow (in thousands): December 31, 2017 Amortized Gross Gross Fair U.S. Government-sponsored enterprises (GSEs) $ 26,207 $ 1 $ (432 ) $ 25,776 Municipal securities 9,122 28 (147 ) 9,003 Other debt securities 974 — (24 ) 950 Mortgage-backed securities 117,263 136 (1,184 ) 116,215 Total $ 153,566 $ 165 $ (1,787 ) $ 151,944 December 31, 2016 Amortized Gross Gross Fair U.S. Government-sponsored enterprises (GSEs) $ 18,279 $ 8 $ (564 ) $ 17,723 Municipal securities 8,182 16 (179 ) 8,019 Mortgage-backed securities 104,585 185 (1,090 ) 103,680 Total $ 131,046 $ 209 $ (1,833 ) $ 129,422 | |
Investments Classified by Contractual Maturity Date | The amortized cost and estimated fair value of securities at June 30, 2018 , by contractual maturity for non-mortgage backed securities, are shown below (in thousands). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Fair Value Due in one year or less $ — $ — Due from one year to five years 21,554 20,901 Due from five years to ten years 13,995 13,366 Due after ten years 10,460 10,356 46,009 44,623 Mortgage-backed securities 114,538 111,954 $ 160,547 $ 156,577 | The amortized cost and estimated market value of securities at December 31, 2017 , by contractual maturity, are shown below (in thousands). Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Fair Due in one year or less $ 2,174 $ 2,175 Due from one year to five years 21,606 21,292 Due from five years to ten years 8,037 7,822 Due after ten years 4,486 4,440 36,303 35,729 Mortgage-backed securities 117,263 116,215 Total $ 153,566 $ 151,944 |
Schedule of Unrealized Loss on Investments | The following tables present the gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities available-for-sale have been in a continuous unrealized loss position, as of June 30, 2018 and December 31, 2017 (in thousands): As of June 30, 2018 Less than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses U.S. Government- sponsored enterprises (GSEs) $ 14,862 $ (425 ) $ 13,266 $ (584 ) $ 28,128 $ (1,009 ) Municipal securities 11,966 (182 ) 2,072 (138 ) 14,038 (320 ) Other debt securities — — 911 (65 ) 911 (65 ) Mortgage-backed securities (GSEs) 58,377 (1,654 ) 29,911 (1,101 ) 88,288 (2,755 ) $ 85,205 $ (2,261 ) $ 46,160 $ (1,888 ) $ 131,365 $ (4,149 ) As of December 31, 2017 Less than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses U.S. Government- sponsored enterprises (GSEs) $ 1,358 $ (1 ) $ 13,420 $ (431 ) $ 14,778 $ (432 ) Municipal securities 3,418 (43 ) 2,112 (104 ) 5,530 (147 ) Other debt securities 950 (24 ) — — 950 (24 ) Mortgage-backed securities (GSEs) 61,332 (407 ) 35,048 (777 ) 96,380 (1,184 ) $ 67,058 $ (475 ) $ 50,580 $ (1,312 ) $ 117,638 $ (1,787 ) | The following tables present the gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities available-for-sale have been in a continuous unrealized loss position, as of December 31, 2017 and 2016 (in thousands): As of December 31, 2017 Less than 12 Months 12 Months or Greater Total Fair Gross Fair Gross Fair Gross U.S. Government- sponsored enterprises (GSEs) $ 1,358 $ (1 ) $ 13,420 $ (431 ) $ 14,778 $ (432 ) Municipal securities 3,418 (43 ) 2,112 (104 ) 5,530 (147 ) Other debt securities 950 (24 ) — — 950 (24 ) Mortgage-backed securities 61,332 (407 ) 35,048 (777 ) 96,380 (1,184 ) Total $ 67,058 $ (475 ) $ 50,580 $ (1,312 ) $ 117,638 $ (1,787 ) As of December 31, 2016 Less than 12 Months 12 Months or Greater Total Fair Gross Fair Gross Fair Gross U.S. Government- sponsored enterprises (GSEs) $ 14,702 $ (564 ) $ — $ — $ 14,702 $ (564 ) Municipal securities 6,368 (179 ) — — 6,368 (179 ) Mortgage-backed securities 67,063 (690 ) 8,948 (400 ) 76,011 (1,090 ) Total $ 88,133 $ (1,433 ) $ 8,948 $ (400 ) $ 97,081 $ (1,833 ) |
Schedule of Available For Sale Securities and Held To Maturity Reconciliation | Sales of available for sale securities for the years ended December 31, 2017 and 2016 , were as follows (in thousands): 2017 2016 Proceeds $ 12,614 $ 31,599 Gains realized 145 200 Losses realized 2 — |
Loans and Allowance for Loan 55
Loans and Allowance for Loan Losses (FY) (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | ||
Schedule of Accounts, Notes, Loans and Financing Receivable | At June 30, 2018 and December 31, 2017 , loans are summarized as follows (in thousands): June 30, 2018 December 31, 2017 PCI Loans 1 All Other Loans Total PCI Loans 1 All Other Loans Total Commercial real estate $ 18,474 $ 727,390 $ 745,864 $ 17,903 $ 625,085 $ 642,988 Consumer real estate 6,987 348,889 355,876 7,450 286,007 293,457 Construction and land development 5,690 173,741 179,431 5,120 130,289 135,409 Commercial and industrial 821 278,950 279,771 858 237,229 238,087 Consumer and other 686 13,807 14,493 1,463 11,854 13,317 Total loans 32,658 1,542,777 1,575,435 32,794 1,290,464 1,323,258 Less: Allowance for loan losses (19 ) (7,055 ) (7,074 ) (16 ) (5,844 ) (5,860 ) Loans, net $ 32,639 $ 1,535,722 $ 1,568,361 $ 32,778 $ 1,284,620 $ 1,317,398 1 Purchased Credit Impaired loans (“PCI loans”) are loans with evidence of credit deterioration at purchase. | At December 31, 2017 and 2016 , loans consisted of the following (in thousands): December 31, 2017 December 31, 2016 PCI All Other Total PCI All Other Total Commercial real estate $ 17,903 $ 625,085 $ 642,988 $ 14,943 $ 400,265 $ 415,208 Consumer real estate 7,450 286,007 293,457 9,004 178,798 187,802 Construction and land development 5,120 130,289 135,409 1,678 116,191 117,869 Commercial and industrial 858 237,229 238,087 1,568 83,454 85,022 Consumer and other 1,463 11,854 13,317 — 7,475 7,475 Total loans 32,794 1,290,464 1,323,258 27,193 786,183 813,376 Less: Allowance for loan losses (16 ) (5,844 ) (5,860 ) — (5,105 ) (5,105 ) Loans, net $ 32,778 $ 1,284,620 $ 1,317,398 $ 27,193 $ 781,078 $ 808,271 |
Schedule of Allowance for Loan Losses for Impaired and Performing Loans Receivable | The following tables show the allowance for loan losses allocation by loan classification for impaired, PCI, and performing loans as of June 30, 2018 and December 31, 2017 (in thousands): June 30, 2018 Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Performing loans $ 3,116 $ 1,491 $ 744 $ 1,145 $ 224 $ 6,720 PCI loans 19 — — — — 19 Impaired loans — 37 — 222 76 335 Total $ 3,135 $ 1,528 $ 744 $ 1,367 $ 300 $ 7,074 December 31, 2017 Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Performing loans $ 2,444 $ 1,340 $ 521 $ 890 $ 204 $ 5,399 PCI loans 16 — — — — 16 Impaired loans 5 256 — 172 12 445 Total $ 2,465 $ 1,596 $ 521 $ 1,062 $ 216 $ 5,860 | The following tables show the allowance for loan losses allocation by loan classification for impaired and performing loans as of December 31, 2017 and 2016 (amounts in thousands): December 31, 2017 Construction Commercial Consumer Commercial Consumer and Land and and Real Estate Real Estate Development Industrial Other Total Performing loans $ 2,444 $ 1,340 $ 521 $ 890 $ 204 $ 5,399 PCI loans 16 — — — — 16 Impaired loans 5 256 — 172 12 445 Total $ 2,465 $ 1,596 $ 521 $ 1,062 $ 216 $ 5,860 December 31, 2016 Construction Commercial Consumer Commercial Consumer and Land and and Real Estate Real Estate Development Industrial Other Total Performing loans $ 2,369 $ 1,382 $ 717 $ 516 $ 117 $ 5,101 PCI Loans — — — — — — Impaired loans — — — 4 — 4 Total $ 2,369 $ 1,382 $ 717 $ 520 $ 117 $ 5,105 |
Schedule of Financing Receivable Allowance For Credit Losses | The following tables detail the changes in the allowance for loan losses for the six month period ending June 30, 2018 and year ending December 31, 2017 , by loan classification (in thousands): June 30, 2018 Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Beginning balance $ 2,465 $ 1,596 $ 521 $ 1,062 $ 216 $ 5,860 Loans charged off (38 ) (25 ) — (78 ) (101 ) (242 ) Recoveries of loans charged off — 50 5 56 40 151 Provision (reallocation) charged to expense 708 (93 ) 218 327 145 1,305 Ending balance $ 3,135 $ 1,528 $ 744 $ 1,367 $ 300 $ 7,074 December 31, 2017 Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Beginning balance $ 2,369 $ 1,382 $ 717 $ 520 $ 117 $ 5,105 Loans charged off — (111 ) — (24 ) (141 ) (276 ) Recoveries of charge-offs 8 99 13 67 61 248 Provision (reallocation) charged to expense 88 226 (209 ) 499 179 783 Ending balance $ 2,465 $ 1,596 $ 521 $ 1,062 $ 216 $ 5,860 | The following tables detail the changes in the allowance for loan losses for the year ending December 31, 2017 and December 31, 2016 , by loan classification (amounts in thousands): December 31, 2017 Commercial Consumer Construction Commercial Consumer Total Beginning balance $ 2,369 $ 1,382 $ 717 $ 520 $ 117 $ 5,105 Loans charged off — (111 ) — (24 ) (141 ) (276 ) Recoveries of loans charged off 8 99 13 67 61 248 Provision (reallocation) charged to operating expense 88 226 (209 ) 499 179 783 Ending balance $ 2,465 $ 1,596 $ 521 $ 1,062 $ 216 $ 5,860 December 31, 2016 Commercial Consumer Construction Commercial Consumer Total Beginning balance $ 1,906 $ 1,015 $ 627 $ 777 $ 29 $ 4,354 Loans charged off — (102 ) (14 ) (35 ) (155 ) (306 ) Recoveries of loans charged off 45 76 22 58 68 269 Provision (reallocation) charged to operating expense 418 393 82 (280 ) 175 788 Ending balance $ 2,369 $ 1,382 $ 717 $ 520 $ 117 $ 5,105 |
Financing Receivable Credit Quality Indicators | The following tables outline the amount of each loan classification and the amount categorized into each risk rating as of June 30, 2018 and December 31, 2017 (in thousands): June 30, 2018 Non PCI Loans Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Pass $ 724,763 $ 343,407 $ 172,972 $ 277,384 $ 13,184 $ 1,531,710 Watch 1,604 3,168 62 1,035 123 5,992 Special mention — 949 160 35 363 1,507 Substandard 1,023 1,365 547 483 111 3,529 Doubtful — — — 13 26 39 Total $ 727,390 $ 348,889 $ 173,741 $ 278,950 $ 13,807 $ 1,542,777 PCI Loans Pass $ 14,494 $ 4,558 $ 3,973 $ 210 $ 565 $ 23,800 Watch 1,513 898 653 2 18 3,084 Special mention 1,393 575 716 153 17 2,854 Substandard 1,074 956 348 456 86 2,920 Doubtful — — — — — — Total $ 18,474 $ 6,987 $ 5,690 $ 821 $ 686 $ 32,658 Total loans $ 745,864 $ 355,876 $ 179,431 $ 279,771 $ 14,493 $ 1,575,435 December 31, 2017 Non PCI Loans Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Pass $ 616,028 $ 279,464 $ 129,359 $ 233,942 $ 11,624 $ 1,270,417 Watch 7,673 2,543 383 3,007 62 13,668 Special mention 1,006 2,627 — 64 155 3,852 Substandard 378 1,159 547 157 — 2,241 Doubtful — 214 — 59 13 286 Total $ 625,085 $ 286,007 $ 130,289 $ 237,229 $ 11,854 $ 1,290,464 PCI Loans Pass $ 14,386 $ 4,151 $ 4,134 $ 68 $ 819 $ 23,558 Watch 261 1,345 649 120 262 2,637 Special mention — 456 — 58 24 538 Substandard 3,084 1,192 337 588 107 5,308 Doubtful 172 306 — 24 251 753 Total $ 17,903 $ 7,450 $ 5,120 $ 858 $ 1,463 $ 32,794 Total loans $ 642,988 $ 293,457 $ 135,409 $ 238,087 $ 13,317 $ 1,323,258 | The following tables outline the amount of each loan classification and the amount categorized into each risk rating as of December 31, 2017 and 2016 (amounts in thousands): Non PCI Loans December 31, 2017 Commercial Consumer Construction Commercial Consumer Total Pass $ 616,028 $ 279,464 $ 129,359 $ 233,942 $ 11,624 $ 1,270,417 Watch 7,673 2,543 383 3,007 62 13,668 Special mention 1,006 2,627 — 64 155 3,852 Substandard 378 1,159 547 157 — 2,241 Doubtful — 214 — 59 13 286 Total $ 625,085 $ 286,007 $ 130,289 $ 237,229 $ 11,854 $ 1,290,464 PCI Loans December 31, 2017 Commercial Consumer Construction Commercial Consumer Total Pass $ 14,386 $ 4,151 $ 4,134 $ 68 $ 819 $ 23,558 Watch 261 1,345 649 120 262 2,637 Special mention — 456 — 58 24 538 Substandard 3,084 1,192 337 588 107 5,308 Doubtful 172 306 — 24 251 753 Total $ 17,903 $ 7,450 $ 5,120 $ 858 $ 1,463 $ 32,794 Total loans $ 642,988 $ 293,457 $ 135,409 $ 238,087 $ 13,317 $ 1,323,258 Non PCI Loans December 31, 2016 Commercial Consumer Construction Commercial Consumer Total Pass $ 399,505 $ 177,466 $ 115,237 $ 82,992 $ 7,238 $ 782,438 Watch 640 550 89 252 — 1,531 Special mention — 104 — — 237 341 Substandard 120 678 865 210 — 1,873 Doubtful — — — — — — Total $ 400,265 $ 178,798 $ 116,191 $ 83,454 $ 7,475 $ 786,183 PCI Loans December 31, 2016 Commercial Consumer Construction Commercial Consumer Total Pass $ 11,836 $ 6,811 $ 1,019 $ 1,507 $ — $ 21,173 Watch 1,045 1,577 645 22 — 3,289 Special mention — — — 12 — 12 Substandard 2,062 616 14 — — 2,692 Doubtful — — — 27 — 27 Total $ 14,943 $ 9,004 $ 1,678 $ 1,568 $ — $ 27,193 Total loans $ 415,208 $ 187,802 $ 117,869 $ 85,022 $ 7,475 $ 813,376 |
Past Due Financing Receivables | The following tables present the aging of the recorded investment in loans as of June 30, 2018 and December 31, 2017 (in thousands): June 30, 2018 30-89 Days Past Due and Accruing Past Due 90 Days or More and Accruing Nonaccrual Total Past Due and NonAccrual PCI Loans Current Loans Total Loans Commercial real estate $ 2,628 $ 82 $ 6 $ 2,716 $ 18,474 $ 724,674 $ 745,864 Consumer real estate 701 76 463 1,240 6,987 347,649 355,876 Construction and land development 403 338 547 1,288 5,690 172,453 179,431 Commercial and industrial 647 113 430 1,190 821 277,760 279,771 Consumer and other 189 58 92 339 686 13,468 14,493 Total $ 4,568 $ 667 $ 1,538 $ 6,773 $ 32,658 $ 1,536,004 $ 1,575,435 December 31, 2017 30-89 Days Past Due and Accruing Past Due 90 Days or More and Accruing Nonaccrual Total Past Due and NonAccrual PCI Loans Current Loans Total Loans Commercial real estate $ 517 $ 728 $ 128 $ 1,373 $ 17,903 $ 623,712 $ 642,988 Consumer real estate 963 33 991 1,987 7,450 284,020 293,457 Construction and land development 65 326 547 938 5,120 129,351 135,409 Commercial and industrial 286 131 85 502 858 236,727 238,087 Consumer and other 165 291 13 469 1,463 11,385 13,317 Total $ 1,996 $ 1,509 $ 1,764 $ 5,269 $ 32,794 $ 1,285,195 $ 1,323,258 | The following tables present the aging of the recorded investment in loans and leases as of December 31, 2017 and 2016 (amounts in thousands): December 31, 2017 30-89 Days Past Due 90 Nonaccrual Total PCI Loans Current Total Commercial real estate $ 517 $ 728 $ 128 $ 1,373 $ 17,903 $ 623,712 $ 642,988 Consumer real estate 963 33 991 1,987 7,450 284,020 293,457 Construction and land development 65 326 547 938 5,120 129,351 135,409 Commercial and industrial 286 131 85 502 858 236,727 238,087 Consumer and other 165 291 13 469 1,463 11,385 13,317 Total $ 1,996 $ 1,509 $ 1,764 $ 5,269 $ 32,794 $ 1,285,195 $ 1,323,258 December 31, 2016 30-89 Days Past Due 90 Nonaccrual Total PCI Current Total Commercial real estate $ 395 $ — $ — $ 395 $ 14,943 $ 399,870 $ 415,208 Consumer real estate 695 699 386 1,780 9,004 177,018 187,802 Construction and land development 690 — 865 1,555 1,678 114,636 117,869 Commercial and industrial 257 — 164 421 1,568 83,033 85,022 Consumer and other 17 — — 17 — 7,458 7,475 Total $ 2,054 $ 699 $ 1,415 $ 4,168 $ 27,193 $ 782,015 $ 813,376 |
Impaired Financing Receivables | The following is an analysis of the impaired loan portfolio, excluding PCI loans, detailing the related allowance recorded as of June 30, 2018 and December 31, 2017 (in thousands): For the six months ended At June 30, 2018 June 30, 2018 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Impaired loans without a valuation allowance: Commercial real estate $ 1,034 $ 1,043 $ — $ 670 $ 15 Consumer real estate 793 823 — 699 12 Construction and land development 547 547 — 547 — Commercial and industrial 81 83 — 58 3 Consumer and other 16 16 — 5 — 2,471 2,512 — 1,979 30 Impaired loans with a valuation allowance: Commercial real estate — — — 8 — Consumer real estate 203 216 37 642 11 Construction and land development — — — — — Commercial and industrial 438 440 222 257 5 Consumer and other 93 95 76 72 2 734 751 335 979 18 PCI loans: Commercial real estate 27 127 19 5 3 Total impaired loans $ 3,232 $ 3,390 $ 354 $ 2,963 $ 51 For the year ended At December 31, 2017 December 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Impaired loans without a valuation allowance: Commercial real estate $ 424 $ 454 $ — $ 204 $ 44 Consumer real estate 415 420 — 401 16 Construction and land development 547 547 — 628 — Commercial and industrial 41 41 — 44 3 Consumer and other — — — — — 1,427 1,462 — 1,277 63 Impaired loans with a valuation allowance: Commercial real estate 23 23 5 5 1 Consumer real estate 1,007 1,033 256 601 38 Construction and land development — — — — — Commercial and industrial 172 172 172 117 10 Consumer and other 12 13 12 2 1 1,214 1,241 445 725 50 PCI loans: Commercial real estate 16 123 16 3 16 Total impaired loans $ 2,657 $ 2,826 $ 461 $ 2,005 $ 129 | The following is an analysis of the impaired loan portfolio detailing the related allowance recorded as of and for the years ended December 31, 2017 and 2016 (amounts in thousands): For the year ended At December 31, 2017 December 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Impaired loans without a valuation allowance: Non PCI Loans: Commercial real estate $ 424 $ 454 $ — $ 204 $ 44 Consumer real estate 415 420 — 401 16 Construction and land development 547 547 — 628 — Commercial and industrial 41 41 — 44 3 Consumer and other — — — — — 1,427 1,462 — 1,277 63 PCI loans: None in 2017 Impaired loans with a valuation allowance: Non PCI Loans: Commercial real estate 23 23 5 5 1 Consumer real estate 1,007 1,033 256 601 38 Construction and land development — — — — — Commercial and industrial 172 172 172 117 10 Consumer and other 12 13 12 2 1 1,214 1,241 445 725 50 PCI loans: Commercial real estate 16 123 16 3 16 Total impaired loans $ 2,657 $ 2,826 $ 461 $ 2,005 $ 129 For the year ended At December 31, 2016 December 31, 2016 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Impaired loans without a valuation allowance: Non PCI Loans: Commercial real estate $ 119 $ 119 $ — $ 1,311 $ 73 Consumer real estate 821 849 — 2,334 100 Construction and land development 865 865 — 967 3 Commercial and industrial 46 46 — 47 4 Consumer and other — — — — — 1,851 1,879 — 4,659 180 PCI loans: None in 2016 Impaired loans with a valuation allowance: Non PCI Loans: Commercial real estate — — — — — Consumer real estate — — — — — Construction and land development — — — — — Commercial and industrial 164 243 4 306 70 Consumer and other — — — — — 164 243 4 306 70 PCI loans: None in 2016 Total impaired loans $ 2,015 $ 2,122 $ 4 $ 4,965 $ 250 |
Troubled Debt Restructurings on Financing Receivables | The following table presents a summary of loans that were modified as troubled debt restructurings during the year ended December 31, 2016 (amounts in thousands): December 31, 2016 Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Construction and land development 1 $ 278 $ 278 Commercial and industrial 1 164 164 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period, Carrying Amount of Loans | The Company has acquired loans which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of those loans as of is as follows (in thousands): June 30, 2018 December 31, 2017 Commercial real estate $ 25,700 $ 23,366 Consumer real estate 9,620 10,764 Construction and land development 6,793 6,285 Commercial and industrial 2,973 1,452 Consumer and other 1,014 1,710 Total loans 46,100 43,577 Less remaining purchase discount (13,442 ) (10,783 ) Total loans, net of purchase discount 32,658 32,794 Less: Allowance for loan losses (19 ) (16 ) Carrying amount, net of allowance $ 32,639 $ 32,778 | The Company has acquired loans which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of those loans at for the years ended December 31, 2017 and 2016 is as follows (in thousands): 2017 2016 Commercial real estate $ 23,366 $ 18,473 Consumer real estate 10,764 12,111 Construction and land development 6,285 2,553 Commercial and industrial 1,452 2,482 Consumer and other 1,710 — Total loans $ 43,577 $ 35,619 Less remaining purchase discount (10,783 ) (8,426 ) Total, gross 32,794 27,193 Less: Allowance for loan losses (16 ) — Carrying amount, net of allowance $ 32,778 $ 27,193 |
Schedule of Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement | Activity related to the accretable yield on loans acquired with deteriorated credit quality is as follows for the three and six months period ended June 30, 2018 and 2017 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Accretable yield, beginning of period $ 7,780 $ 8,482 $ 9,287 $ 8,950 Additions 1,292 — 1,292 — Accretion income (1,928 ) (973 ) (3,029 ) (1,670 ) Reclassification to accretable 120 366 382 610 Other changes, net (58 ) 600 (726 ) 585 Accretable yield $ 7,206 $ 8,475 $ 7,206 $ 8,475 | The following is a summary of the accretable discount on acquired loans for the years ended December 31, 2017 and 2016 (in thousands): 2017 2016 Accretable yield, beginning of period $ 8,950 $ 10,217 Additions 2,581 — Accretion income (4,217 ) (2,588 ) Reclassification from nonaccretable 926 1,585 Other changes, net 1,047 (264 ) Accretable yield, end of period $ 9,287 $ 8,950 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period | Purchased credit impaired loans acquired from Capstone during the year ended December 31, 2017 for which it was probable at acquisition that all contractually required payments would not be collected are as follows (in thousands): 2017 Contractual principal and interest at acquisition $ 25,288 Nonaccretable difference 5,725 Expected cash flows at acquisition 19,563 Accretable yield 2,581 Basis in PCI loans at acquisition-estimated fair value $ 16,982 | |
Schedule of Loan to Directors, Officers and Affiliated Parties | A summary of activity in loans to related parties is as follows (in thousands): 2017 2016 Balance, beginning of year $ 12,999 $ 10,851 Disbursements 14,533 855 Removal of credit lines — (1,153 ) Changes in ownership — 4,830 Repayments (9,202 ) (2,384 ) Balance, end of year $ 18,330 $ 12,999 |
Premises and Equipment (FY) (Ta
Premises and Equipment (FY) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | A summary of premises and equipment at December 31, 2017 and 2016 , is as follows (in thousands): 2017 2016 Land and land improvements $ 10,854 $ 8,354 Building and leasehold improvements 28,576 18,507 Furniture, fixtures and equipment 10,073 7,043 Construction in progress 1,495 2,789 Total, gross 50,998 36,693 Accumulated depreciation (7,998 ) (6,157 ) Total, net $ 43,000 $ 30,536 |
Schedule of Future Minimum Rental Payments for Operating Leases | At December 31, 2017 , the remaining minimum lease payments relating to these leases were as follows (in thousands): 2018 $ 608 2019 500 2020 487 2021 344 2022 124 2023 40 |
Deposits (FY) (Tables)
Deposits (FY) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deposits [Abstract] | |
Scheduled Maturities Of Time Deposit | The aggregate amount of time deposits in denominations of $250,000 or more was approximately $171,529,000 and $123,053,000 at December 31, 2017 and 2016 , respectively. At December 31, 2017 , the scheduled maturities of time deposits are as follows (in thousands): 2018 $ 290,093 2019 84,906 2020 36,170 2021 14,353 2022 16,039 Thereafter 120 Total $ 441,681 |
Goodwill and Intangible Asset58
Goodwill and Intangible Assets (FY) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | The following table presents information about our core deposit premium intangible asset at December 31 (in thousands): 2017 2016 Gross Accumulated Gross Accumulated Amortized intangible asset: Core deposit intangible $ 8,589 $ 626 $ 2,750 $ 280 |
Finite-lived Intangible Assets Amortization Expense | The following table presents information about aggregate amortization expense for 2017 and 2016 and for the succeeding fiscal years as follows (in thousands): 2017 2016 Aggregate amortization expense of core deposit premium intangible $ 346 $ 305 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated aggregate amortization expense of the core deposit premium intangible for the year ending December 31 (in thousands): 2018 $ 772 2019 772 2020 717 2021 670 2022 670 Thereafter 4,362 Total $ 7,963 |
Income Taxes (FY) (Table)
Income Taxes (FY) (Table) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense in the consolidated statements of income for the years ended December 31, 2017 and 2016 , includes the following (in thousands): 2017 2016 Current tax expense Federal $ 1,962 $ 2,503 State 428 531 Deferred tax expense (benefit) related to: Provision for loan losses (355 ) (320 ) Depreciation 374 203 Fair value adjustments 1,611 356 Nonaccrual interest (26 ) (26 ) Foreclosed real estate 55 117 Core deposit intangible (123 ) (117 ) Other 63 115 Change in tax rate 2,440 — Total income tax expense $ 6,429 $ 3,362 |
Schedule of Effective Income Tax Rate Reconciliation | The income tax expense is different from the expected tax expense computed by multiplying income before income tax expense by the statutory income tax rates. The reasons for this difference are as follows (in thousands): 2017 2016 Federal income tax expense computed at the statutory rate $ 3,891 $ 3,115 State income taxes, net of federal tax benefit 491 393 Nondeductible acquisition expenses 364 — Change in tax rate 2,440 — Other (757 ) (146 ) Total income tax expense $ 6,429 $ 3,362 |
Schedule of Deferred Tax Assets and Liabilities | The components of the net deferred tax asset as of December 31, 2017 and 2016 , were as follows (in thousands): 2017 2016 Deferred tax assets: Allowance for loan losses $ 1,561 $ 1,932 Fair value adjustments 4,829 3,744 Foreclosed real estate 301 539 Deferred compensation 849 415 State net operating loss carryforward — — Other 849 561 Total deferred tax assets 8,389 7,191 Deferred tax liabilities: Accumulated depreciation 1,194 1,903 Core deposit intangible 1,945 946 Other 223 639 Total deferred tax liabilities 3,362 3,488 Net deferred tax asset $ 5,027 $ 3,703 |
Federal Home Loan Bank Advanc60
Federal Home Loan Bank Advances and Other Borrowings (FY) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Federal Home Loan Bank, Advances, by Branch of FHLB Bank | At December 31, 2017, there were no advances from the FHLB. At December 31, 2016, FHLB advances consisted of the following (amounts in thousands): Long-term advance dated January 10, 2007, requiring monthly interest payments, fixed at 4.25%, with a put option exercisable in January 2008 and then quarterly thereafter, principal due in January 2017 $ 5,000 |
Scheduled Maturities Of Federal Home Loan Bank Advances and Other Borrowings | At December 31, 2017, scheduled maturities of the Federal Home Loan Bank advances, federal funds purchased of $33,600,000 , and other borrowings are as follows (amounts in thousands): 2018 $33,600 2022 $10,000 |
Employee Benefit Plans (FY) (Ta
Employee Benefit Plans (FY) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Defined Benefit Plan [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | A summary of the status of these stock option plans is presented in the following table: Number Weighted Average Exercisable Price Outstanding at December 31, 2016 717,524 $ 10.57 Granted — — Exercised (506,923 ) 9.64 Forfeited (24,496 ) 19.90 Capstone options assumed in business combination 130,469 11.76 Outstanding at December 31, 2017 316,574 $ 11.82 Number Weighted Average Exercisable Price Outstanding at December 31, 2015 817,414 $ 10.62 Granted — — Exercised (89,556 ) 8.98 Forfeited (10,334 ) 28.49 Outstanding at December 31, 2016 717,524 $ 10.57 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | Information pertaining to options outstanding at December 31, 2017 , is as follows: Options Outstanding Options Exercisable Weighted- Average Remaining Weighted- Average Weighted- Average Exercise Number Contractual Exercise Number Exercise Prices Outstanding Life Price Exercisable Price 6.60 37,500 4.2 years 6.60 37,500 6.60 6.80 16,875 3.2 years 6.80 16,875 6.80 9.48 26,875 5.2 years 9.48 26,875 9.48 9.60 35,625 6.2 years 9.60 35,625 9.60 11.67 2,000 3.1 years 11.67 2,000 11.67 11.76 130,469 1.9 years 11.76 130,469 11.76 14.40 12,805 1.2 years 14.40 12,805 14.40 15.05 41,259 7.8 years 15.05 17,804 15.05 31.96 13,166 0.2 years 31.96 13,166 31.96 Outstanding, end of year 316,574 3.7 years 11.82 293,119 11.56 |
Schedule Of Share Based Compensation Arrangement By Share Based Payment Award Options Non Vested | Information related to non-vested options for the period ended December 31, 2017 , is as follows: Number Weighted Average Grant-Date Fair Value Nonvested at December 31, 2016 47,970 $ 12.31 Granted — — Vested (14,469 ) 12.31 Forfeited/expired (10,046 ) 12.31 Nonvested at December 31, 2017 23,455 $ 12.31 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The following table summarizes activity relating to non-vested restricted stock awards: Number Nonvested at December 31, 2016 — Granted 27,500 Vested — Forfeited/expired — Nonvested at December 31, 2017 27,500 |
Commitments and Contingencies62
Commitments and Contingencies (FY) (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Other Commitments | A summary of the Bank’s total contractual amount for all off-balance sheet commitments at June 30, 2018 is as follows: Commitments to extend credit $ 299.6 million Standby letters of credit $ 3.7 million | A summary of the Company's total contractual amount for all off-balance sheet commitments at December 31, 2017 is as follows: Commitments to extend credit 292.8 million Standby letters of credit, issued by the Company 5.5 million |
Regulatory Matters (FY) (Tables
Regulatory Matters (FY) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | Actual and required capital levels at December 31, 2017 and 2016 are presented below (dollars in thousands): Actual Minimum for capital adequacy purposes Minimum to be well capitalized under prompt corrective action provisions (1) Amount Ratio Amount Ratio Amount Ratio December 31, 2017 SmartFinancial, Inc. Total Capital (to Risk-Weighted Assets) $ 163,683 10.98 % $ 119,257 8.00 % Tier 1 Capital (to Risk-Weighted Assets) 157,823 10.59 % 89,442 6.00 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) 157,823 10.59 % 67,082 4.50 % Tier 1 Capital (to Average Assets) 157,823 10.78 % 58,562 4.00 % SmartBank Total Capital (to Risk-Weighted Assets) $ 168,148 11.29 % $ 119,111 8.00 % $ 148,889 10.00 % Tier 1 Capital (to Risk-Weighted Assets) 162,288 10.90 % 89,333 6.00 % 119,111 8.00 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) 162,288 10.90 % 67,000 4.50 % 96,778 6.50 % Tier 1 Capital (to Average Assets) 162,288 11.26 % 57,656 4.00 % 72,070 5.00 % (1) The prompt corrective action provisions are applicable at the Bank level only. Actual Minimum for capital Minimum to be well Amount Ratio Amount Ratio Amount Ratio December 31, 2016 SmartFinancial, Inc. Total Capital (to Risk-Weighted Assets) $ 105,756 11.99 % $ 70,553 8.00 % Tier 1 Capital (to Risk-Weighted Assets) 100,651 11.42 % 52,915 6.00 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) 88,651 10.05 % 39,686 4.50 % Tier 1 Capital (to Average Assets) 100,651 9.81 % 41,052 4.00 % SmartBank Total Capital (to Risk-Weighted Assets) $ 104,705 11.88 % $ 70,535 8.00 % $ 88,169 10.00 % Tier 1 Capital (to Risk-Weighted Assets) 99,600 11.30 % 52,901 6.00 % 70,535 8.00 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) 99,600 11.30 % 39,676 4.50 % 57,310 6.50 % Tier 1 Capital (to Average Assets) 99,600 9.71 % 41,041 4.00 % 51,301 5.00 % (1) The prompt corrective action provisions are applicable at the Bank level only. |
Fair Value of Assets and Liab64
Fair Value of Assets and Liabilities (FY) (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | ||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Assets and liabilities recorded at fair value on a recurring basis are as follows (in thousands): Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Debt securities available-for-sale: U.S. Government-sponsored enterprises (GSEs) $ 28,128 $ — $ 28,128 $ — Mortgage-backed securities 111,954 — 111,954 — Other debt securities 911 — 911 — Municipal securities 15,584 — 15,584 — Total securities available-for-sale $ 156,577 $ — $ 156,577 $ — Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Debt securities available-for-sale: U.S. Government-sponsored enterprises (GSEs) $ 25,776 $ — $ 25,776 $ — Mortgage-backed securities 116,215 — 116,215 — Other debt securities 950 — 950 — Municipal securities 9,003 — 9,003 — Total securities available-for-sale $ 151,944 $ — $ 151,944 $ — | Assets recorded at fair value on a recurring basis are as follows, in thousands Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Securities available-for-sale: U.S. Government-sponsored enterprises (GSEs) $ 25,776 $ — $ 25,776 $ — Municipal securities 9,003 — 9,003 — Other debt securities 950 — 950 — Mortgage-backed securities 116,215 — 116,215 — Total securities available-for-sale $ 151,944 $ — $ 151,944 $ — Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Securities available-for-sale: U.S. Government-sponsored enterprises (GSEs) $ 17,723 $ — $ 17,723 $ — Municipal securities 8,019 — 8,019 — Mortgage-backed securities 103,680 — 103,680 — Total securities available-for-sale $ 129,422 $ — $ 129,422 $ — |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis | The following tables present the financial instruments carried on the consolidated balance sheets by caption and by level in the fair value hierarchy, for which a nonrecurring change in fair value has been recorded (in thousands): Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Impaired loans $ 407 $ — $ — $ 407 Foreclosed assets 3,524 — — 3,524 Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Impaired loans $ 769 $ — $ — $ 769 Foreclosed assets 3,254 — — 3,254 For Level 3 assets measured at fair value on a non-recurring basis as of March 31, 2018 and December 31, 2017, the significant unobservable inputs used in the fair value measurements are presented below (in thousands). Balance as of Valuation Significant Other Weighted Impaired loans $ 407 Appraisal and Cashflow Appraisal and Cashflow Discounts 47 % Foreclosed assets 3,524 Appraisal Appraisal Discounts 19 % Balance as of Valuation Significant Other Weighted Impaired loans $ 769 Appraisal Appraisal Discounts 36 % Foreclosed assets 3,254 Appraisal Appraisal Discounts 18 % | The following tables present the financial instruments carried on the consolidated balance sheets by caption and by level in the fair value hierarchy, for which a nonrecurring change in fair value has been recorded (in thousands): Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Impaired loans $ 769 $ — $ — $ 769 Foreclosed assets 3,254 — — 3,254 Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Impaired loans $ 239 $ — $ — $ 239 Foreclosed assets 2,386 — — 2,386 |
Fair Value Assets Measured On Non Recurring Basis Unobservable Input Reconciliation | For Level 3 assets measured at fair value on a non-recurring basis as of December 31, 2017 and 2016 , the significant unobservable inputs used in the fair value measurements are presented below. Balance as of Valuation Technique Significant Other Unobservable Input Weighted Average of Input Impaired loans $ 769 Third Party Appraisal Appraisal Discounts 35.5 % Foreclosed assets 3,254 Third Party Appraisal Appraisal Discounts 17.8 % Balance as of Valuation Technique Significant Other Unobservable Input Weighted Average of Input Impaired loans $ 239 Cash Flow Discounted Cash Flow / Appraisal Discounts 2.4 % Foreclosed assets 2,386 Appraisal Appraisal Discounts 12.2 % | |
Fair Value, by Balance Sheet Grouping | The carrying amount and estimated fair value of the Company’s financial instruments at June 30, 2018 and December 31, 2017 are as follows (in thousands): June 30, 2018 Fair Value Measurements Using Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value Assets: Cash and cash equivalents $ 170,235 170,235 — — $ 170,235 Securities available-for-sale 156,577 — 156,577 — 156,577 Restricted investments 8,273 N/A N/A N/A N/A Loans, net 1,568,361 — — 1,569,916 1,569,916 Liabilities: Noninterest-bearing demand deposits 301,318 — 301,318 — 301,318 Interest-bearing demand deposits 246,942 — 246,942 — 246,942 Money Market and Savings deposits 632,518 — 632,518 — 632,518 Time deposits 535,879 — 537,006 — 537,006 Securities sold under agreements to repurchase 18,635 — 18,635 — 18,635 Federal Home Loan Bank advances and other borrowings 72,040 — 72,040 — 72,040 December 31, 2017 Fair Value Measurements Using Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value Assets: Cash and cash equivalents $ 113,027 113,027 — — $ 113,027 Securities available-for-sale 151,944 — 151,944 — 151,944 Restricted investments 6,431 N/A N/A N/A N/A Loans, net 1,317,398 — — 1,292,303 1,292,303 Liabilities: Noninterest-bearing demand deposits 220,520 — 220,520 — 250,520 Interest-bearing demand deposits 231,644 — 231,644 — 231,644 Money Market and Savings deposits 543,645 — 543,645 — 543,645 Time deposits 442,774 — 443,547 — 443,547 Securities sold under agreements to repurchase 24,055 — 24,055 — 24,055 Federal Home Loan Bank advances and other borrowings 43,600 — 43,600 — 43,600 | The carrying amount and estimated fair value of the Company’s financial instruments at December 31, 2017 and December 31, 2016 are as follows (in thousands): December 31, 2017 December 31, 2016 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets: Cash and cash equivalents $ 113,027 $ 113,027 $ 68,748 $ 68,748 Securities available for sale 151,944 151,944 129,422 129,422 Restricted investments 6,431 N/A 5,628 N/A Loans, net 1,317,398 1,292,303 808,271 803,057 Liabilities: Noninterest-bearing demand deposits 220,520 220,520 153,483 153,483 Interest-bearing demand deposits 231,644 231,644 162,702 162,702 Savings deposits 543,645 543,645 274,605 274,605 Time deposits 442,774 443,547 316,275 316,734 Securities sold under agreements to repurchase 24,055 24,055 26,622 26,622 Federal Home Loan Bank advances and other borrowings 43,600 43,600 18,505 18,505 |
Earnings Per Share (FY) (Tables
Earnings Per Share (FY) (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Schedule of Earnings Per Share, Basic and Diluted | The following is a summary of the basic and diluted earnings per share for the three and six months ended June 30, 2018 and 2017 . Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Net income available to common shareholders $ 3,931,556 $ 1,648,286 $ 7,346,326 $ 3,097,138 Weighted average common shares outstanding 12,201,185 8,216,567 11,708,746 7,872,609 Effect of dilutive stock options 119,313 108,971 113,751 104,673 Diluted shares 12,320,498 8,325,538 11,822,497 7,977,282 Basic earnings per common share $ 0.32 $ 0.20 $ 0.63 $ 0.39 Diluted earnings per common share $ 0.32 $ 0.20 $ 0.62 $ 0.39 | The effect from the stock options on incremental shares from the assumed conversions for net income per share-basic and net income per share-diluted are presented below. There were antidilutive shares of 13,166 and 17,649 for the years ended December 31, 2017 and 2016 , respectively. (Dollars in thousands, except share amounts) 2017 2016 Basic earnings per share computation: Net income available to common stockholders $ 4,820 $ 4,777 Average common shares outstanding – basic 8,639,212 5,838,574 Basic earnings per share $ 0.56 $ 0.82 Diluted earnings per share computation: Net income available to common stockholders $ 4,820 $ 4,777 Average common shares outstanding – basic 8,639,212 5,838,574 Incremental shares from assumed conversions: Stock options 154,315 280,369 Average common shares outstanding - diluted 8,793,527 6,118,943 Diluted earnings per share $ 0.55 $ 0.78 |
Condensed Parent Information 66
Condensed Parent Information (FY) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheet | CONDENSED BALANCE SHEETS December 31, December 31, 2017 2016 ASSETS Cash $ 3,936 $ 2,068 Investment in subsidiaries 168,104 100,023 Other assets 42,766 4,392 Total assets $ 214,806 $ 106,483 LIABILITIES AND STOCKHOLDERS’ EQUITY Other liabilities $ (1,046 ) $ 1,243 Other borrowings 10,000 — Total liabilities 8,954 1,243 Stockholders’ equity 205,852 105,240 Total liabilities and stockholders’ equity $ 214,806 $ 106,483 |
Condensed Income Statement | CONDENSED STATEMENTS OF INCOME Years Ended December 31, 2017 2016 INCOME Dividends $ — $ 3,000 Interest income — — — 3,000 EXPENSES Interest expense 69 17 Other operating expenses 2,657 1,146 (Loss) income before equity in undistributed earnings of subsidiaries and income tax benefit (2,726 ) 1,837 Equity in undistributed earnings of subsidiaries 7,134 3,520 Income tax benefit 607 442 Net income 5,015 5,799 Preferred stock dividend requirements 195 1,022 Net income available to common stockholders $ 4,820 $ 4,777 |
Condensed Cash Flow Statement | STATEMENTS OF CASH FLOWS Years Ended December 31, 2017 2016 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 5,015 $ 5,799 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Equity in undistributed income of subsidiary (7,134 ) (3,520 ) Other (2,449 ) 1,234 Net cash (used in) provided by operating activities (4,568 ) 3,513 CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of note payable 10,000 — Repayment of note payable — (2,000 ) Redemption of preferred stock (12,000 ) — Proceeds from issuance of common stock 37,853 804 Payment of dividends on preferred stock (195 ) (752 ) Net cash provided by (used in) financing activities 35,658 (1,948 ) CASH FLOWS FROM INVESTING ACTIVITIES Net cash for purchase of Capstone Bancshares, Inc. (14,222 ) — Capital injection in subsidiary (15,000 ) Net cash used in investing activities (29,222 ) — NET INCREASE IN CASH AND CASH EQUIVALENTS 1,868 1,565 CASH AND CASH EQUIVALENTS, beginning of year 2,068 503 CASH AND CASH EQUIVALENTS, end of year $ 3,936 $ 2,068 |
Presentation of Financial Inf67
Presentation of Financial Information (Q2) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Gross interchange and debit card transaction fees | $ 401,000 | $ 733,000 | ||||
Network costs | 280,000 | $ 140,000 | 467,000 | $ 227,000 | ||
Interchange and debit card transaction fees | $ 121,219 | $ 223,329 | $ 266,754 | $ 415,722 | ||
Tax Cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings, Tax Effect | $ 197,000 | $ 0 |
Business Combination - Narrativ
Business Combination - Narrative (Q2) (Details) - USD ($) | May 01, 2018 | Apr. 27, 2018 | Nov. 01, 2017 | May 19, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Aug. 31, 2015 |
Business Acquisition [Line Items] | ||||||||||
Cash consideration paid | $ 15,826,000 | |||||||||
Pro-forma revenue | $ 5,000,000 | |||||||||
Pro-forma net income | 200,000 | |||||||||
Goodwill | 38,047,000 | $ 42,873,689 | ||||||||
Pro forma revenue, acquisition | 24,900,000 | |||||||||
Pro forma net income (loss) | 947,000 | |||||||||
Fair value adjustment | $ 11,000 | |||||||||
Atlantic Capital Bank, N.A. [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash consideration paid | $ 1,183,007 | |||||||||
Pro-forma revenue | 381,000 | $ 754,000 | 903,311 | |||||||
Pro-forma net income | 105,000 | 194,000 | $ 63,385 | |||||||
Goodwill | $ 660,000 | |||||||||
Capstone Bancshares Inc. [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash consideration paid | $ 15,826,000 | |||||||||
Pro-forma revenue | 7,600,000 | 14,500,000 | ||||||||
Pro-forma net income | $ 3,400,000 | 6,000,000 | ||||||||
Exchange of shares | 0.85 | |||||||||
Cash payment per share (in dollars per share) | $ 18.50 | |||||||||
Percentage of common stock consideration transferred | 80.00% | |||||||||
Percentage of cash consideration transferred | 20.00% | |||||||||
Voting interests acquired | 74.00% | |||||||||
Goodwill | $ 38,047,000 | |||||||||
Pro forma revenue, acquisition | $ 6,200,000 | $ 12,500,000 | ||||||||
Pro forma net income (loss) | 237,000 | 473,000 | ||||||||
Estimated common stock issued (in shares) | 2,908,094 | |||||||||
Market price of SMBK common stock (in dollars per share) | $ 23.49 | |||||||||
Tennessee Bancshares [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash consideration paid | $ 5,000 | |||||||||
Pro-forma revenue | 2,400,000 | |||||||||
Pro-forma net income | 800,000 | |||||||||
Voting interests acquired | 88.60% | |||||||||
Goodwill | $ 15,728,000 | |||||||||
Pro forma revenue, acquisition | 3,700,000 | 7,300,000 | ||||||||
Pro forma net income (loss) | $ 909,000 | $ 1,800,000 | ||||||||
Common shares converted (in shares) | 0.8065 | |||||||||
Estimated common stock issued (in shares) | 1,458,981 | |||||||||
Consecutive trading days | 10 days | |||||||||
Market price of SMBK common stock (in dollars per share) | $ 23.85 | |||||||||
Weighted Average [Member] | Tennessee Bancshares [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Market price of SMBK common stock (in dollars per share) | $ 23.92 | |||||||||
Pro Forma [Member] | Capstone Bancshares Inc. [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Expenses | 4,600,000 | |||||||||
Pro Forma [Member] | Tennessee Bancshares [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Expenses | $ 1,300,000 |
Business Combination - Atlantic
Business Combination - Atlantic Capital Bank, N.A. Allocation of Purchase Price (Q2) (Details) - USD ($) | Nov. 01, 2017 | May 19, 2017 | Aug. 31, 2015 |
Business Acquisition [Line Items] | |||
Cash consideration paid | $ 15,826,000 | ||
Fair value of assets acquired and liabilities assumed: | |||
Cash and cash equivalents | 16,810,000 | ||
Premises and equipment | 8,668,000 | ||
Prepaid and other assets | 6,360,000 | ||
Total fair value of net assets acquired | 47,675,000 | ||
Goodwill | $ 38,047,000 | $ 42,873,689 | |
Atlantic Capital Bank, N.A. [Member] | |||
Business Acquisition [Line Items] | |||
Cash consideration paid | $ 1,183,007 | ||
Fair value of assets acquired and liabilities assumed: | |||
Cash and cash equivalents | 133,000 | ||
Loans | 24,073,000 | ||
Premises and equipment | 2,839,000 | ||
Core deposit intangible | 310,000 | ||
Prepaid and other assets | 77,000 | ||
Deposits | (26,888,000) | ||
Payables and other liabilities | (21,000) | ||
Total fair value of net assets acquired | 523,000 | ||
Goodwill | $ 660,000 |
Business Combination - Capstone
Business Combination - Capstone Merger (Q2) (Details) - USD ($) | Nov. 01, 2017 | Aug. 31, 2015 |
Business Acquisition [Line Items] | ||
Estimated fair value of Capstone stock options | $ 1,585,000 | |
Cash consideration paid | 15,826,000 | |
Total consideration | 85,722,000 | |
Fair value of assets acquired and liabilities assumed: | ||
Cash and cash equivalents | 16,810,000 | |
Investment securities available for sale | 51,638,000 | |
Restricted investments | 1,049,000 | |
Loans | 413,023,000 | |
Premises and equipment | 8,668,000 | |
Bank owned life insurance | 10,031,000 | |
Core deposit intangible | 5,530,000 | |
Other real estate owned | 410,000 | |
Prepaid and other assets | 6,360,000 | |
Deposits | (454,154,000) | |
Payables and other liabilities | (6,803,000) | |
Total fair value of net assets acquired | 47,675,000 | |
Goodwill | $ 38,047,000 | $ 42,873,689 |
Capstone Bancshares Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Estimated common stock issued (in shares) | 2,908,094 | |
Market price of SMBK common stock (in dollars per share) | $ 23.49 | |
Estimated fair value of SMBK common stock issued (in shares) | $ 68,311,000 | |
Estimated fair value of Capstone stock options | 1,585,000 | |
Cash consideration paid | 15,826,000 | |
Total consideration | 85,722,000 | |
Fair value of assets acquired and liabilities assumed: | ||
Cash and cash equivalents | 16,810,000 | |
Investment securities available for sale | 51,638,000 | |
Restricted investments | 1,049,000 | |
Loans | 413,023,000 | |
Premises and equipment | 8,668,000 | |
Bank owned life insurance | 10,031,000 | |
Core deposit intangible | 5,530,000 | |
Other real estate owned | 410,000 | |
Prepaid and other assets | 6,360,000 | |
Deposits | (454,154,000) | |
FHLB advances and other borrowings | (4,887,000) | |
Payables and other liabilities | (6,803,000) | |
Total fair value of net assets acquired | 47,675,000 | |
Goodwill | $ 38,047,000 |
Business Combination - Tennesse
Business Combination - Tennessee Bancshares Merger (Q2) (Details) - USD ($) | May 01, 2018 | Nov. 01, 2017 | Aug. 31, 2015 |
Business Acquisition [Line Items] | |||
Cash consideration paid | $ 15,826,000 | ||
Total consideration | 85,722,000 | ||
Fair value of assets acquired and liabilities assumed: | |||
Cash and cash equivalents | 16,810,000 | ||
Investment securities available for sale | 51,638,000 | ||
Restricted investments | 1,049,000 | ||
Loans | 413,023,000 | ||
Premises and equipment | 8,668,000 | ||
Core deposit intangible | 5,530,000 | ||
Other real estate owned | 410,000 | ||
Prepaid and other assets | 6,360,000 | ||
Deposits | (454,154,000) | ||
Payables and other liabilities | (6,803,000) | ||
Total fair value of net assets acquired | 47,675,000 | ||
Goodwill | $ 38,047,000 | $ 42,873,689 | |
Tennessee Bancshares [Member] | |||
Business Acquisition [Line Items] | |||
Shares of SMBK common stock issued to TN Bancshares shareholders as of May 1, 2018 (in shares) | 1,458,981 | ||
Market price of SMBK common stock on May 1, 2018 (in dollars per share) | $ 23.85 | ||
Estimated fair value of SMBK common stock issued (in shares) | $ 34,797,000 | ||
Cash consideration paid | 5,000 | ||
Total consideration | 34,802,000 | ||
Fair value of assets acquired and liabilities assumed: | |||
Cash and cash equivalents | 5,723,000 | ||
Investment securities available for sale | 24,563,000 | ||
Restricted investments | 464,000 | ||
Loans | 180,490,000 | ||
Premises and equipment | 9,470,000 | ||
Core deposit intangible | 2,290,000 | ||
Other real estate owned | 674,000 | ||
Prepaid and other assets | 2,258,000 | ||
Deposits | (202,272,000) | ||
FHLB advances and other borrowings | (4,000,000) | ||
Payables and other liabilities | (586,000) | ||
Total fair value of net assets acquired | 19,074,000 | ||
Goodwill | $ 15,728,000 |
Earnings per share - Basic and
Earnings per share - Basic and Diluted (Q2) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | ||||||
Net income available to common shareholders | $ 3,931,556 | $ 1,648,286 | $ 7,346,326 | $ 3,097,138 | $ 4,820,064 | $ 4,776,808 |
Weighted average common shares outstanding (in shares) | 12,201,185 | 8,216,567 | 11,708,746 | 7,872,609 | 8,639,212 | 5,838,574 |
Effect of dilutive stock options (in shares) | 119,313 | 108,971 | 113,751 | 104,673 | 154,315 | 280,369 |
Diluted shares (in shares) | 12,320,498 | 8,325,538 | 11,822,497 | 7,977,282 | 8,793,527 | 6,118,943 |
Basic earnings per common share (in dollars per share) | $ 0.32 | $ 0.20 | $ 0.63 | $ 0.39 | $ 0.56 | $ 0.82 |
Diluted earnings per common share (in dollars per share) | $ 0.32 | $ 0.20 | $ 0.62 | $ 0.39 | $ 0.55 | $ 0.78 |
Earnings per share - Narrative
Earnings per share - Narrative (Q2) (Details) - shares | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | ||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 13,916 | 0 | 13,916 | 13,166 | 17,649 |
Securities - Amortized Cost and
Securities - Amortized Cost and Fair Value of Available-for-sale Securities (Q2) (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | $ 160,547,000 | $ 153,566,000 | $ 131,046,000 |
Gross Unrealized Gains | 179,000 | 165,000 | |
Gross Unrealized Losses | (4,149,000) | (1,787,000) | |
Fair Value | 156,577,182 | 151,944,567 | 129,421,914 |
U.S. Government-sponsored enterprises (GSEs) [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 29,137,000 | 26,207,000 | $ 18,279,000 |
Gross Unrealized Gains | 0 | 1,000 | |
Gross Unrealized Losses | (1,009,000) | (432,000) | |
Fair Value | 28,128,000 | 25,776,000 | |
Municipal securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 15,896,000 | 9,122,000 | |
Gross Unrealized Gains | 8,000 | 28,000 | |
Gross Unrealized Losses | (320,000) | (147,000) | |
Fair Value | 15,584,000 | 9,003,000 | |
Other debt securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 976,000 | 974,000 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | (65,000) | (24,000) | |
Fair Value | 911,000 | 950,000 | |
Mortgage-backed securities (GSEs) [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 114,538,000 | 117,263,000 | |
Gross Unrealized Gains | 171,000 | 136,000 | |
Gross Unrealized Losses | (2,755,000) | (1,184,000) | |
Fair Value | $ 111,954,000 | $ 116,215,000 |
Securities - Available-for-sale
Securities - Available-for-sale Securities by Contractual Maturity (Q2) (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Securities, Available-for-sale [Line Items] | |||
Securities Available for Sale, Due in one year or less, Amortized Cost | $ 0 | $ 2,174,000 | |
Securities Available for Sale, Due from one year to five years, Amortized Cost | 21,554,000 | 21,606,000 | |
Securities Available for Sale, Due from five years to ten years, Amortized Cost | 13,995,000 | 8,037,000 | |
Securities Available for Sale, Due after ten years, Amortized Cost | 10,460,000 | 4,486,000 | |
Securities Available for Sale, Debt Securities, Amortized Cost | 46,009,000 | 36,303,000 | |
Securities Available for Sale, Mortgage-backed securities, Amortized Cost | 117,263,000 | ||
Amortized Cost | 160,547,000 | 153,566,000 | $ 131,046,000 |
Securities Available for Sale, Due in one year or less, Fair Value | 0 | 2,175,000 | |
Securities Available for Sale, Due from one year to five years, Fair Value | 20,901,000 | 21,292,000 | |
Securities Available for Sale, Due from five years to ten years, Fair Value | 13,366,000 | 7,822,000 | |
Securities Available for Sale, Due after ten years, Fair Value | 10,356,000 | 4,440,000 | |
Securities Available for Sale, Debt Securities, Fair Value | 44,623,000 | 35,729,000 | |
Securities Available for Sale, Mortgage-backed securities, Fair Value | 116,215,000 | ||
Securities available for sale | 156,577,182 | $ 151,944,567 | $ 129,421,914 |
Mortgage-backed securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Securities Available for Sale, Mortgage-backed securities, Amortized Cost | 114,538,000 | ||
Securities Available for Sale, Mortgage-backed securities, Fair Value | $ 111,954,000 |
Securities - Available-for-sa76
Securities - Available-for-sale Securities in Continuous Loss Position (Q2) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale, fair value, less than 12 months | $ 85,205 | $ 67,058 | |
Available-for-sale, gross unrealized losses, less than 12 months | (2,261) | (475) | $ (1,433) |
Available-for-sale, fair value, 12 months or greater | 46,160 | 50,580 | |
Available-for-sale, gross unrealized losses, 12 months or greater | (1,888) | (1,312) | (400) |
Securities available for sale | 131,365 | 117,638 | |
Available-for-sale, gross unrealized losses, total | (4,149) | (1,787) | (1,833) |
U.S. Government-sponsored enterprises (GSEs) [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale, fair value, less than 12 months | 14,862 | 1,358 | |
Available-for-sale, gross unrealized losses, less than 12 months | (425) | (1) | (564) |
Available-for-sale, fair value, 12 months or greater | 13,266 | 13,420 | |
Available-for-sale, gross unrealized losses, 12 months or greater | (584) | (431) | 0 |
Securities available for sale | 28,128 | 14,778 | |
Available-for-sale, gross unrealized losses, total | (1,009) | (432) | (564) |
Municipal securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale, fair value, less than 12 months | 11,966 | 3,418 | |
Available-for-sale, gross unrealized losses, less than 12 months | (182) | (43) | |
Available-for-sale, fair value, 12 months or greater | 2,072 | 2,112 | |
Available-for-sale, gross unrealized losses, 12 months or greater | (138) | (104) | |
Securities available for sale | 14,038 | 5,530 | |
Available-for-sale, gross unrealized losses, total | (320) | (147) | |
Other debt securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale, fair value, less than 12 months | 0 | 950 | |
Available-for-sale, gross unrealized losses, less than 12 months | 0 | (24) | |
Available-for-sale, fair value, 12 months or greater | 911 | 0 | |
Available-for-sale, gross unrealized losses, 12 months or greater | (65) | 0 | |
Securities available for sale | 911 | 950 | |
Available-for-sale, gross unrealized losses, total | (65) | (24) | |
Mortgage-backed securities (GSEs) [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale, fair value, less than 12 months | 58,377 | 61,332 | |
Available-for-sale, gross unrealized losses, less than 12 months | (1,654) | (407) | (690) |
Available-for-sale, fair value, 12 months or greater | 29,911 | 35,048 | |
Available-for-sale, gross unrealized losses, 12 months or greater | (1,101) | (777) | (400) |
Securities available for sale | 88,288 | 96,380 | |
Available-for-sale, gross unrealized losses, total | $ (2,755) | $ (1,184) | $ (1,090) |
Securities - Narrative (Q2) (De
Securities - Narrative (Q2) (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018USD ($)investment | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)investment | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Loans and Leases Receivable Disclosure [Line Items] | |||||
Proceeds from sale of available-for-sale securities | $ | $ 0 | $ 0 | $ 0 | $ 0 | |
Loss from redemption of securities | $ | 1,200 | 1,200 | $ 0 | ||
Collateral Pledged [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Restricted securities | $ | $ 113,500,000 | $ 113,500,000 | $ 97,200,000 | ||
Mortgage-backed securities [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Number of positions | 65 | 65 | |||
US Government-sponsored Enterprises Debt Securities [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Number of positions | 8 | 8 | |||
Municipal securities [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Number of positions | 21 | 21 | |||
Other debt securities [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Number of positions | 1 | 1 |
Loans and Allowance for Loan 78
Loans and Allowance for Loan Losses - Loan Summary (Q2) (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 1,575,435,000 | $ 1,323,258,000 | $ 813,376,000 | |
Less: Allowance for loan losses | (7,073,937) | (5,860,291) | (5,105,000) | $ (4,354,000) |
Loans, net | 1,568,360,556 | 1,317,397,909 | 808,271,003 | |
Purchased Credit Impaired Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 32,658,000 | 32,794,000 | 27,193,000 | |
Less: Allowance for loan losses | (19,000) | (16,000) | 0 | |
Loans, net | 32,639,000 | 32,778,000 | 27,193,000 | |
All Other Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 1,542,777,000 | 1,290,464,000 | 786,183,000 | |
Less: Allowance for loan losses | (7,055,000) | (5,844,000) | (5,105,000) | |
Loans, net | 1,535,722,000 | 1,284,620,000 | 781,078,000 | |
Commercial Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 745,864,000 | 642,988,000 | 415,208,000 | |
Less: Allowance for loan losses | (3,135,000) | (2,465,000) | (2,369,000) | (1,906,000) |
Commercial Real Estate [Member] | Purchased Credit Impaired Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 18,474,000 | 17,903,000 | 14,943,000 | |
Less: Allowance for loan losses | (19,000) | (16,000) | 0 | |
Commercial Real Estate [Member] | All Other Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 727,390,000 | 625,085,000 | 400,265,000 | |
Consumer Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 355,876,000 | 293,457,000 | 187,802,000 | |
Less: Allowance for loan losses | (1,528,000) | (1,596,000) | (1,382,000) | (1,015,000) |
Consumer Real Estate [Member] | Purchased Credit Impaired Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 6,987,000 | 7,450,000 | 9,004,000 | |
Less: Allowance for loan losses | 0 | 0 | 0 | |
Consumer Real Estate [Member] | All Other Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 348,889,000 | 286,007,000 | 178,798,000 | |
Construction and Land Development [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 179,431,000 | 135,409,000 | 117,869,000 | |
Less: Allowance for loan losses | (744,000) | (521,000) | (717,000) | (627,000) |
Construction and Land Development [Member] | Purchased Credit Impaired Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 5,690,000 | 5,120,000 | 1,678,000 | |
Less: Allowance for loan losses | 0 | 0 | 0 | |
Construction and Land Development [Member] | All Other Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 173,741,000 | 130,289,000 | 116,191,000 | |
Commercial and Industrial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 279,771,000 | 238,087,000 | 85,022,000 | |
Less: Allowance for loan losses | (1,367,000) | (1,062,000) | (520,000) | (777,000) |
Commercial and Industrial [Member] | Purchased Credit Impaired Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 821,000 | 858,000 | 1,568,000 | |
Less: Allowance for loan losses | 0 | 0 | 0 | |
Commercial and Industrial [Member] | All Other Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 278,950,000 | 237,229,000 | 83,454,000 | |
Consumer and Other [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 14,493,000 | 13,317,000 | 7,475,000 | |
Less: Allowance for loan losses | (300,000) | (216,000) | (117,000) | $ (29,000) |
Consumer and Other [Member] | Purchased Credit Impaired Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 686,000 | 1,463,000 | 0 | |
Less: Allowance for loan losses | 0 | 0 | 0 | |
Consumer and Other [Member] | All Other Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 13,807,000 | $ 11,854,000 | $ 7,475,000 |
Loans and Allowance for Loan 79
Loans and Allowance for Loan Losses - Narrative (Q2) (Details) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018USD ($)Loancontract | Dec. 31, 2017USD ($)Loan | Dec. 31, 2017USD ($)contract | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Financing Receivable, Modifications [Line Items] | |||||
Loan portfolio segments | Loan | 5 | ||||
Allowance for loan losses | $ 7,073,937 | $ 5,860,291 | $ 5,860,291 | $ 5,105,000 | $ 4,354,000 |
Number of contracts | 0 | 0 | |||
Foreclosed assets | 3,524,239 | $ 3,254,392 | $ 3,254,392 | 2,386,239 | |
Trouble Debt Restructuring [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Loans that met criteria for restructured | $ 660,000 | 41,000 | 41,000 | ||
Number of contracts, nonaccrual | contract | 0 | ||||
Residential Real Estate [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Foreclosed assets | $ 1,140,000 | $ 545,750 | $ 545,750 | $ 1,500 | |
Commercial Real Estate [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Loans that met criteria for restructured | $ 622,000 | ||||
Number of contracts | Loan | 1 |
Loans and Allowance for Loan 80
Loans and Allowance for Loan Losses - Performing and Impaired Loans (Q2) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | $ 1,575,435 | $ 1,323,258 | $ 813,376 |
All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 1,542,777 | 1,290,464 | 786,183 |
Purchased Credit Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 32,658 | 32,794 | 27,193 |
Commercial Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 745,864 | 642,988 | 415,208 |
Commercial Real Estate [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 727,390 | 625,085 | 400,265 |
Commercial Real Estate [Member] | Purchased Credit Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 18,474 | 17,903 | 14,943 |
Consumer Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 355,876 | 293,457 | 187,802 |
Consumer Real Estate [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 348,889 | 286,007 | 178,798 |
Consumer Real Estate [Member] | Purchased Credit Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 6,987 | 7,450 | 9,004 |
Construction and Land Development [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 179,431 | 135,409 | 117,869 |
Construction and Land Development [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 173,741 | 130,289 | 116,191 |
Construction and Land Development [Member] | Purchased Credit Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 5,690 | 5,120 | 1,678 |
Commercial and Industrial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 279,771 | 238,087 | 85,022 |
Commercial and Industrial [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 278,950 | 237,229 | 83,454 |
Commercial and Industrial [Member] | Purchased Credit Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 821 | 858 | 1,568 |
Consumer and Other [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 14,493 | 13,317 | 7,475 |
Consumer and Other [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 13,807 | 11,854 | 7,475 |
Consumer and Other [Member] | Purchased Credit Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 686 | 1,463 | 0 |
Performing [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 1,539,572 | 1,287,823 | 784,168 |
Performing [Member] | Commercial Real Estate [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 726,356 | 624,638 | 400,146 |
Performing [Member] | Consumer Real Estate [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 347,893 | 284,585 | 177,977 |
Performing [Member] | Construction and Land Development [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 173,194 | 129,742 | 115,326 |
Performing [Member] | Commercial and Industrial [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 278,431 | 237,016 | 83,244 |
Performing [Member] | Consumer and Other [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 13,698 | 11,842 | 7,475 |
Impaired Loans [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 3,205 | 2,641 | 2,015 |
Impaired Loans [Member] | Commercial Real Estate [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 1,034 | 447 | 119 |
Impaired Loans [Member] | Consumer Real Estate [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 996 | 1,422 | 821 |
Impaired Loans [Member] | Construction and Land Development [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 547 | 547 | 865 |
Impaired Loans [Member] | Commercial and Industrial [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 519 | 213 | 210 |
Impaired Loans [Member] | Consumer and Other [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | $ 109 | $ 12 | $ 0 |
Loans and Allowance for Loan 81
Loans and Allowance for Loan Losses - ALL by Loan Classification (Q2) (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | $ 7,073,937 | $ 5,860,291 | $ 5,105,000 | $ 4,354,000 |
All Other Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 7,055,000 | 5,844,000 | 5,105,000 | |
Purchased Credit Impaired Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 19,000 | 16,000 | 0 | |
Performing [Member] | All Other Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 6,720,000 | 5,399,000 | 5,101,000 | |
Impaired Loans [Member] | All Other Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 335,000 | 445,000 | 4,000 | |
Commercial Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 3,135,000 | 2,465,000 | 2,369,000 | 1,906,000 |
Commercial Real Estate [Member] | Purchased Credit Impaired Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 19,000 | 16,000 | 0 | |
Commercial Real Estate [Member] | Performing [Member] | All Other Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 3,116,000 | 2,444,000 | 2,369,000 | |
Commercial Real Estate [Member] | Impaired Loans [Member] | All Other Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 0 | 5,000 | 0 | |
Consumer Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 1,528,000 | 1,596,000 | 1,382,000 | 1,015,000 |
Consumer Real Estate [Member] | Purchased Credit Impaired Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 0 | 0 | 0 | |
Consumer Real Estate [Member] | Performing [Member] | All Other Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 1,491,000 | 1,340,000 | 1,382,000 | |
Consumer Real Estate [Member] | Impaired Loans [Member] | All Other Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 37,000 | 256,000 | 0 | |
Construction and Land Development [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 744,000 | 521,000 | 717,000 | 627,000 |
Construction and Land Development [Member] | Purchased Credit Impaired Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 0 | 0 | 0 | |
Construction and Land Development [Member] | Performing [Member] | All Other Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 744,000 | 521,000 | 717,000 | |
Construction and Land Development [Member] | Impaired Loans [Member] | All Other Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 0 | 0 | 0 | |
Commercial and Industrial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 1,367,000 | 1,062,000 | 520,000 | 777,000 |
Commercial and Industrial [Member] | Purchased Credit Impaired Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 0 | 0 | 0 | |
Commercial and Industrial [Member] | Performing [Member] | All Other Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 1,145,000 | 890,000 | 516,000 | |
Commercial and Industrial [Member] | Impaired Loans [Member] | All Other Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 222,000 | 172,000 | 4,000 | |
Consumer and Other [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 300,000 | 216,000 | 117,000 | $ 29,000 |
Consumer and Other [Member] | Purchased Credit Impaired Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 0 | 0 | 0 | |
Consumer and Other [Member] | Performing [Member] | All Other Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 224,000 | 204,000 | 117,000 | |
Consumer and Other [Member] | Impaired Loans [Member] | All Other Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | $ 76,000 | $ 12,000 | $ 0 |
Loans and Allowance for Loan 82
Loans and Allowance for Loan Losses - ALL Roll Forward (Q2) (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | $ 5,860,291 | $ 5,105,000 | $ 5,105,000 | $ 4,354,000 |
Loans charged off | (242,000) | (276,000) | (306,000) | |
Recoveries of loans charged off | 151,000 | 248,000 | 269,000 | |
Provision (reallocation) charged to expense | 1,305,397 | 310,482 | 782,687 | 787,545 |
Ending balance | 7,073,937 | 5,860,291 | 5,105,000 | |
Commercial Real Estate [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 2,465,000 | 2,369,000 | 2,369,000 | 1,906,000 |
Loans charged off | (38,000) | 0 | 0 | |
Recoveries of loans charged off | 0 | 8,000 | 45,000 | |
Provision (reallocation) charged to expense | 708,000 | 88,000 | 418,000 | |
Ending balance | 3,135,000 | 2,465,000 | 2,369,000 | |
Consumer Real Estate [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 1,596,000 | 1,382,000 | 1,382,000 | 1,015,000 |
Loans charged off | (25,000) | (111,000) | (102,000) | |
Recoveries of loans charged off | 50,000 | 99,000 | 76,000 | |
Provision (reallocation) charged to expense | (93,000) | 226,000 | 393,000 | |
Ending balance | 1,528,000 | 1,596,000 | 1,382,000 | |
Construction and Land Development [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 521,000 | 717,000 | 717,000 | 627,000 |
Loans charged off | 0 | 0 | (14,000) | |
Recoveries of loans charged off | 5,000 | 13,000 | 22,000 | |
Provision (reallocation) charged to expense | 218,000 | (209,000) | 82,000 | |
Ending balance | 744,000 | 521,000 | 717,000 | |
Commercial and Industrial [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 1,062,000 | 520,000 | 520,000 | 777,000 |
Loans charged off | (78,000) | (24,000) | (35,000) | |
Recoveries of loans charged off | 56,000 | 67,000 | 58,000 | |
Provision (reallocation) charged to expense | 327,000 | 499,000 | (280,000) | |
Ending balance | 1,367,000 | 1,062,000 | 520,000 | |
Consumer and Other [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 216,000 | $ 117,000 | 117,000 | 29,000 |
Loans charged off | (101,000) | (141,000) | (155,000) | |
Recoveries of loans charged off | 40,000 | 61,000 | 68,000 | |
Provision (reallocation) charged to expense | 145,000 | 179,000 | 175,000 | |
Ending balance | $ 300,000 | $ 216,000 | $ 117,000 |
Loans and Allowance for Loan 83
Loans and Allowance for Loan Losses - Loan Risk Rating (Q2) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | $ 1,575,435 | $ 1,323,258 | $ 813,376 |
Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 745,864 | 642,988 | 415,208 |
Consumer Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 355,876 | 293,457 | 187,802 |
Construction and Land Development [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 179,431 | 135,409 | 117,869 |
Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 279,771 | 238,087 | 85,022 |
Consumer and Other [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 14,493 | 13,317 | 7,475 |
Non PCI Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,542,777 | 1,290,464 | 786,183 |
Non PCI Loans [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,531,710 | 1,270,417 | 782,438 |
Non PCI Loans [Member] | Watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 5,992 | 13,668 | 1,531 |
Non PCI Loans [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,507 | 3,852 | 341 |
Non PCI Loans [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 3,529 | 2,241 | 1,873 |
Non PCI Loans [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 39 | 286 | 0 |
Non PCI Loans [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 727,390 | 625,085 | 400,265 |
Non PCI Loans [Member] | Commercial Real Estate [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 724,763 | 616,028 | 399,505 |
Non PCI Loans [Member] | Commercial Real Estate [Member] | Watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,604 | 7,673 | 640 |
Non PCI Loans [Member] | Commercial Real Estate [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 1,006 | 0 |
Non PCI Loans [Member] | Commercial Real Estate [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,023 | 378 | 120 |
Non PCI Loans [Member] | Commercial Real Estate [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | 0 |
Non PCI Loans [Member] | Consumer Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 348,889 | 286,007 | 178,798 |
Non PCI Loans [Member] | Consumer Real Estate [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 343,407 | 279,464 | 177,466 |
Non PCI Loans [Member] | Consumer Real Estate [Member] | Watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 3,168 | 2,543 | 550 |
Non PCI Loans [Member] | Consumer Real Estate [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 949 | 2,627 | 104 |
Non PCI Loans [Member] | Consumer Real Estate [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,365 | 1,159 | 678 |
Non PCI Loans [Member] | Consumer Real Estate [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 214 | 0 |
Non PCI Loans [Member] | Construction and Land Development [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 173,741 | 130,289 | 116,191 |
Non PCI Loans [Member] | Construction and Land Development [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 172,972 | 129,359 | 115,237 |
Non PCI Loans [Member] | Construction and Land Development [Member] | Watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 62 | 383 | 89 |
Non PCI Loans [Member] | Construction and Land Development [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 160 | 0 | 0 |
Non PCI Loans [Member] | Construction and Land Development [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 547 | 547 | 865 |
Non PCI Loans [Member] | Construction and Land Development [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | 0 |
Non PCI Loans [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 278,950 | 237,229 | 83,454 |
Non PCI Loans [Member] | Commercial and Industrial [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 277,384 | 233,942 | 82,992 |
Non PCI Loans [Member] | Commercial and Industrial [Member] | Watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,035 | 3,007 | 252 |
Non PCI Loans [Member] | Commercial and Industrial [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 35 | 64 | 0 |
Non PCI Loans [Member] | Commercial and Industrial [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 483 | 157 | 210 |
Non PCI Loans [Member] | Commercial and Industrial [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 13 | 59 | 0 |
Non PCI Loans [Member] | Consumer and Other [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 13,807 | 11,854 | 7,475 |
Non PCI Loans [Member] | Consumer and Other [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 13,184 | 11,624 | 7,238 |
Non PCI Loans [Member] | Consumer and Other [Member] | Watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 123 | 62 | 0 |
Non PCI Loans [Member] | Consumer and Other [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 363 | 155 | 237 |
Non PCI Loans [Member] | Consumer and Other [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 111 | 0 | 0 |
Non PCI Loans [Member] | Consumer and Other [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 26 | 13 | 0 |
Purchased Credit Impaired Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 32,658 | 32,794 | 27,193 |
Purchased Credit Impaired Loans [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 23,800 | 23,558 | 21,173 |
Purchased Credit Impaired Loans [Member] | Watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 3,084 | 2,637 | 3,289 |
Purchased Credit Impaired Loans [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 2,854 | 538 | 12 |
Purchased Credit Impaired Loans [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 2,920 | 5,308 | 2,692 |
Purchased Credit Impaired Loans [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 753 | 27 |
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 18,474 | 17,903 | 14,943 |
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 14,494 | 14,386 | 11,836 |
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member] | Watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,513 | 261 | 1,045 |
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,393 | 0 | 0 |
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,074 | 3,084 | 2,062 |
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 172 | 0 |
Purchased Credit Impaired Loans [Member] | Consumer Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 6,987 | 7,450 | 9,004 |
Purchased Credit Impaired Loans [Member] | Consumer Real Estate [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 4,558 | 4,151 | 6,811 |
Purchased Credit Impaired Loans [Member] | Consumer Real Estate [Member] | Watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 898 | 1,345 | 1,577 |
Purchased Credit Impaired Loans [Member] | Consumer Real Estate [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 575 | 456 | 0 |
Purchased Credit Impaired Loans [Member] | Consumer Real Estate [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 956 | 1,192 | 616 |
Purchased Credit Impaired Loans [Member] | Consumer Real Estate [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 306 | 0 |
Purchased Credit Impaired Loans [Member] | Construction and Land Development [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 5,690 | 5,120 | 1,678 |
Purchased Credit Impaired Loans [Member] | Construction and Land Development [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 3,973 | 4,134 | 1,019 |
Purchased Credit Impaired Loans [Member] | Construction and Land Development [Member] | Watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 653 | 649 | 645 |
Purchased Credit Impaired Loans [Member] | Construction and Land Development [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 716 | 0 | 0 |
Purchased Credit Impaired Loans [Member] | Construction and Land Development [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 348 | 337 | 14 |
Purchased Credit Impaired Loans [Member] | Construction and Land Development [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | 0 |
Purchased Credit Impaired Loans [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 821 | 858 | 1,568 |
Purchased Credit Impaired Loans [Member] | Commercial and Industrial [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 210 | 68 | 1,507 |
Purchased Credit Impaired Loans [Member] | Commercial and Industrial [Member] | Watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 2 | 120 | 22 |
Purchased Credit Impaired Loans [Member] | Commercial and Industrial [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 153 | 58 | 12 |
Purchased Credit Impaired Loans [Member] | Commercial and Industrial [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 456 | 588 | 0 |
Purchased Credit Impaired Loans [Member] | Commercial and Industrial [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 24 | 27 |
Purchased Credit Impaired Loans [Member] | Consumer and Other [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 686 | 1,463 | 0 |
Purchased Credit Impaired Loans [Member] | Consumer and Other [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 565 | 819 | 0 |
Purchased Credit Impaired Loans [Member] | Consumer and Other [Member] | Watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 18 | 262 | 0 |
Purchased Credit Impaired Loans [Member] | Consumer and Other [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 17 | 24 | 0 |
Purchased Credit Impaired Loans [Member] | Consumer and Other [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 86 | 107 | 0 |
Purchased Credit Impaired Loans [Member] | Consumer and Other [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | $ 0 | $ 251 | $ 0 |
Loans and Allowance for Loan 84
Loans and Allowance for Loan Losses - Past Due Loans (Q2) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | $ 1,538 | $ 1,764 | $ 1,415 |
Total Past Due and NonAccrual | 6,773 | 5,269 | 4,168 |
Current Loans | 1,536,004 | 1,285,195 | 782,015 |
Total loans | 1,575,435 | 1,323,258 | 813,376 |
Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 6 | 128 | 0 |
Total Past Due and NonAccrual | 2,716 | 1,373 | 395 |
Current Loans | 724,674 | 623,712 | 399,870 |
Total loans | 745,864 | 642,988 | 415,208 |
Consumer Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 463 | 991 | 386 |
Total Past Due and NonAccrual | 1,240 | 1,987 | 1,780 |
Current Loans | 347,649 | 284,020 | 177,018 |
Total loans | 355,876 | 293,457 | 187,802 |
Construction and Land Development [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 547 | 547 | 865 |
Total Past Due and NonAccrual | 1,288 | 938 | 1,555 |
Current Loans | 172,453 | 129,351 | 114,636 |
Total loans | 179,431 | 135,409 | 117,869 |
Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 430 | 85 | 164 |
Total Past Due and NonAccrual | 1,190 | 502 | 421 |
Current Loans | 277,760 | 236,727 | 83,033 |
Total loans | 279,771 | 238,087 | 85,022 |
Consumer and Other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 92 | 13 | 0 |
Total Past Due and NonAccrual | 339 | 469 | 17 |
Current Loans | 13,468 | 11,385 | 7,458 |
Total loans | 14,493 | 13,317 | 7,475 |
Purchased Credit Impaired Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans | 32,658 | 32,794 | 27,193 |
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans | 18,474 | 17,903 | 14,943 |
Purchased Credit Impaired Loans [Member] | Consumer Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans | 6,987 | 7,450 | 9,004 |
Purchased Credit Impaired Loans [Member] | Construction and Land Development [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans | 5,690 | 5,120 | 1,678 |
Purchased Credit Impaired Loans [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans | 821 | 858 | 1,568 |
Purchased Credit Impaired Loans [Member] | Consumer and Other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans | 686 | 1,463 | 0 |
30-89 Days Past Due and Accruing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Recorded investment, past due | 4,568 | 1,996 | 2,054 |
30-89 Days Past Due and Accruing [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Recorded investment, past due | 2,628 | 517 | 395 |
30-89 Days Past Due and Accruing [Member] | Consumer Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Recorded investment, past due | 701 | 963 | 695 |
30-89 Days Past Due and Accruing [Member] | Construction and Land Development [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Recorded investment, past due | 403 | 65 | 690 |
30-89 Days Past Due and Accruing [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Recorded investment, past due | 647 | 286 | 257 |
30-89 Days Past Due and Accruing [Member] | Consumer and Other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Recorded investment, past due | 189 | 165 | 17 |
Past Due 90 Days or More and Accruing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Recorded investment, past due | 667 | 1,509 | 699 |
Past Due 90 Days or More and Accruing [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Recorded investment, past due | 82 | 728 | 0 |
Past Due 90 Days or More and Accruing [Member] | Consumer Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Recorded investment, past due | 76 | 33 | 699 |
Past Due 90 Days or More and Accruing [Member] | Construction and Land Development [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Recorded investment, past due | 338 | 326 | 0 |
Past Due 90 Days or More and Accruing [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Recorded investment, past due | 113 | 131 | 0 |
Past Due 90 Days or More and Accruing [Member] | Consumer and Other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Recorded investment, past due | $ 58 | $ 291 | $ 0 |
Loans and Allowance for Loan 85
Loans and Allowance for Loan Losses - Impaired Loan Portfolio (Q2) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Impaired [Line Items] | |||
Impaired loans with a valuation allowance, Related Allowance | $ 354 | $ 461 | |
Total impaired loans, Recorded Investment | 3,232 | 2,657 | |
Total impaired loans, Unpaid Principal Balance | 3,390 | 2,826 | |
Total impaired loans, Average Recorded Investment | 2,963 | 2,005 | |
Total impaired loans, Interest Income Recognized | 51 | 129 | |
Non PCI Loans [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loans without a valuation allowance, Recorded Investment | 2,471 | 1,427 | $ 1,851 |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 2,512 | 1,462 | 1,879 |
Impaired loans without a valuation allowance, Average Recorded Investment | 1,979 | 1,277 | 4,659 |
Impaired loans without a valuation allowance, Interest Income Recognized | 30 | 63 | 180 |
Impaired loans with a valuation allowance, Recorded Investment | 734 | 1,214 | 164 |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 751 | 1,241 | 243 |
Impaired loans with a valuation allowance, Related Allowance | 335 | 445 | 4 |
Impaired loans with a valuation allowance, Average Recorded Investment | 979 | 725 | 306 |
Impaired loans with a valuation allowance, Interest Income Recognized | 18 | 50 | 70 |
Total impaired loans, Recorded Investment | 2,015 | ||
Total impaired loans, Unpaid Principal Balance | 2,122 | ||
Total impaired loans, Average Recorded Investment | 4,965 | ||
Total impaired loans, Interest Income Recognized | 250 | ||
Non PCI Loans [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loans without a valuation allowance, Recorded Investment | 1,034 | 424 | 119 |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 1,043 | 454 | 119 |
Impaired loans without a valuation allowance, Average Recorded Investment | 670 | 204 | 1,311 |
Impaired loans without a valuation allowance, Interest Income Recognized | 15 | 44 | 73 |
Impaired loans with a valuation allowance, Recorded Investment | 0 | 23 | 0 |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 0 | 23 | 0 |
Impaired loans with a valuation allowance, Related Allowance | 0 | 5 | 0 |
Impaired loans with a valuation allowance, Average Recorded Investment | 8 | 5 | 0 |
Impaired loans with a valuation allowance, Interest Income Recognized | 0 | 1 | 0 |
Non PCI Loans [Member] | Consumer Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loans without a valuation allowance, Recorded Investment | 793 | 415 | 821 |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 823 | 420 | 849 |
Impaired loans without a valuation allowance, Average Recorded Investment | 699 | 401 | 2,334 |
Impaired loans without a valuation allowance, Interest Income Recognized | 12 | 16 | 100 |
Impaired loans with a valuation allowance, Recorded Investment | 203 | 1,007 | 0 |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 216 | 1,033 | 0 |
Impaired loans with a valuation allowance, Related Allowance | 37 | 256 | 0 |
Impaired loans with a valuation allowance, Average Recorded Investment | 642 | 601 | 0 |
Impaired loans with a valuation allowance, Interest Income Recognized | 11 | 38 | 0 |
Non PCI Loans [Member] | Construction and Land Development [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loans without a valuation allowance, Recorded Investment | 547 | 547 | 865 |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 547 | 547 | 865 |
Impaired loans without a valuation allowance, Average Recorded Investment | 547 | 628 | 967 |
Impaired loans without a valuation allowance, Interest Income Recognized | 0 | 0 | 3 |
Impaired loans with a valuation allowance, Recorded Investment | 0 | 0 | 0 |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 0 | 0 | 0 |
Impaired loans with a valuation allowance, Related Allowance | 0 | 0 | 0 |
Impaired loans with a valuation allowance, Average Recorded Investment | 0 | 0 | 0 |
Impaired loans with a valuation allowance, Interest Income Recognized | 0 | 0 | 0 |
Non PCI Loans [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loans without a valuation allowance, Recorded Investment | 81 | 41 | 46 |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 83 | 41 | 46 |
Impaired loans without a valuation allowance, Average Recorded Investment | 58 | 44 | 47 |
Impaired loans without a valuation allowance, Interest Income Recognized | 3 | 3 | 4 |
Impaired loans with a valuation allowance, Recorded Investment | 438 | 172 | 164 |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 440 | 172 | 243 |
Impaired loans with a valuation allowance, Related Allowance | 222 | 172 | 4 |
Impaired loans with a valuation allowance, Average Recorded Investment | 257 | 117 | 306 |
Impaired loans with a valuation allowance, Interest Income Recognized | 5 | 10 | 70 |
Non PCI Loans [Member] | Consumer and Other [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loans without a valuation allowance, Recorded Investment | 16 | 0 | 0 |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 16 | 0 | 0 |
Impaired loans without a valuation allowance, Average Recorded Investment | 5 | 0 | 0 |
Impaired loans without a valuation allowance, Interest Income Recognized | 0 | 0 | 0 |
Impaired loans with a valuation allowance, Recorded Investment | 93 | 12 | 0 |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 95 | 13 | 0 |
Impaired loans with a valuation allowance, Related Allowance | 76 | 12 | 0 |
Impaired loans with a valuation allowance, Average Recorded Investment | 72 | 2 | 0 |
Impaired loans with a valuation allowance, Interest Income Recognized | 2 | 1 | $ 0 |
Purchased Credit Impaired Loans [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loans with a valuation allowance, Recorded Investment | 16 | ||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 123 | ||
Impaired loans with a valuation allowance, Related Allowance | 16 | ||
Impaired loans with a valuation allowance, Average Recorded Investment | 3 | ||
Impaired loans with a valuation allowance, Interest Income Recognized | 16 | ||
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loans with a valuation allowance, Related Allowance | 19 | 16 | |
Total impaired loans, Recorded Investment | 27 | 16 | |
Total impaired loans, Unpaid Principal Balance | 127 | 123 | |
Total impaired loans, Average Recorded Investment | 5 | 3 | |
Total impaired loans, Interest Income Recognized | $ 3 | $ 16 |
Loans and Allowance for Loan 86
Loans and Allowance for Loan Losses - Purchased Credit Impaired Loans (Q2) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |||
Total loans | $ 46,100 | $ 43,577 | |
Less remaining purchase discount | (13,442) | (10,783) | |
Total loans, net of purchase discount | 32,658 | 32,794 | |
Less: Allowance for loan losses | (19) | (16) | |
Carrying amount, net of allowance | 32,639 | 32,778 | |
Purchased Credit Impaired Loans [Member] | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |||
Total loans | 43,577 | $ 35,619 | |
Less remaining purchase discount | (10,783) | (8,426) | |
Total loans, net of purchase discount | 32,794 | 27,193 | |
Less: Allowance for loan losses | (16) | 0 | |
Carrying amount, net of allowance | 32,778 | 27,193 | |
Commercial Real Estate [Member] | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |||
Total loans | 25,700 | 23,366 | |
Commercial Real Estate [Member] | Purchased Credit Impaired Loans [Member] | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |||
Total loans | 23,366 | 18,473 | |
Consumer Real Estate [Member] | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |||
Total loans | 9,620 | 10,764 | |
Consumer Real Estate [Member] | Purchased Credit Impaired Loans [Member] | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |||
Total loans | 10,764 | 12,111 | |
Construction and Land Development [Member] | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |||
Total loans | 6,793 | 6,285 | |
Construction and Land Development [Member] | Purchased Credit Impaired Loans [Member] | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |||
Total loans | 6,285 | 2,553 | |
Commercial and Industrial [Member] | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |||
Total loans | 2,973 | 1,452 | |
Commercial and Industrial [Member] | Purchased Credit Impaired Loans [Member] | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |||
Total loans | 1,452 | 2,482 | |
Consumer and Other [Member] | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |||
Total loans | $ 1,014 | 1,710 | |
Consumer and Other [Member] | Purchased Credit Impaired Loans [Member] | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |||
Total loans | $ 1,710 | $ 0 |
Loans and Allowance for Loan 87
Loans and Allowance for Loan Losses - Accretable Yield Roll Forward (Q2) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||||||
Accretable yield, beginning of period | $ 9,287 | $ 8,950 | $ 8,950 | $ 10,217 | ||
Additions | 2,581 | 0 | ||||
Accretion income | (4,217) | (2,588) | ||||
Other changes, net | 1,047 | (264) | ||||
Accretable yield, end of period | $ 1,292 | 1,292 | 9,287 | 8,950 | ||
Purchased Credit Impaired Loans [Member] | ||||||
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||||||
Accretable yield, beginning of period | 7,780 | $ 8,482 | 9,287 | 8,950 | 8,950 | |
Additions | 1,292 | 0 | 1,292 | 0 | ||
Accretion income | (1,928) | (973) | (3,029) | (1,670) | ||
Reclassification to accretable | 120 | 366 | 382 | 610 | ||
Other changes, net | (58) | 600 | (726) | 585 | ||
Accretable yield, end of period | $ 7,206 | $ 8,475 | $ 7,206 | $ 8,475 | $ 9,287 | $ 8,950 |
Loans and Allowance for Loan 88
Loans and Allowance for Loan Losses - Southern Community Bank Purchased Credit Impaired Loans (Q2) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||||
Contractual principal and interest at acquisition | $ 15,133 | |||
Nonaccretable difference | 5,302 | |||
Expected cash flows at acquisition | 9,831 | |||
Accretable yield | 1,292 | $ 9,287 | $ 8,950 | $ 10,217 |
Fair value of purchased credit impaired loans | $ 8,539 |
Commitments and Contingent Li89
Commitments and Contingent Liabilities (Q2) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Line of Credit Facility [Line Items] | ||
Commitments to extend credit | $ 299.6 | $ 292.8 |
Standby letters of credit | $ 3.7 | $ 5.5 |
Standby Letters of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Standby letter of credit term, or less | 2 years |
Fair Value Disclosures - Assets
Fair Value Disclosures - Assets and Liabilities Measured on Recurring Basis (Q2) (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities available-for-sale, at fair value | $ 156,577,182 | $ 151,944,567 | $ 129,421,914 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities available-for-sale, at fair value | 0 | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities available-for-sale, at fair value | 156,577,000 | 151,944,000 | |
Significant Other Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities available-for-sale, at fair value | 0 | 0 | |
U.S. Government-sponsored enterprises (GSEs) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities available-for-sale, at fair value | 28,128,000 | 25,776,000 | |
U.S. Government-sponsored enterprises (GSEs) [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities available-for-sale, at fair value | 0 | 0 | |
U.S. Government-sponsored enterprises (GSEs) [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities available-for-sale, at fair value | 28,128,000 | 25,776,000 | |
U.S. Government-sponsored enterprises (GSEs) [Member] | Significant Other Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities available-for-sale, at fair value | 0 | 0 | |
Mortgage-backed securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities available-for-sale, at fair value | 111,954,000 | 116,215,000 | |
Mortgage-backed securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities available-for-sale, at fair value | 0 | 0 | |
Mortgage-backed securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities available-for-sale, at fair value | 111,954,000 | 116,215,000 | |
Mortgage-backed securities [Member] | Significant Other Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities available-for-sale, at fair value | 0 | 0 | |
Other debt securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities available-for-sale, at fair value | 911,000 | 950,000 | |
Other debt securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities available-for-sale, at fair value | 0 | 0 | |
Other debt securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities available-for-sale, at fair value | 911,000 | 950,000 | |
Other debt securities [Member] | Significant Other Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities available-for-sale, at fair value | 0 | 0 | |
Municipal securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities available-for-sale, at fair value | 15,584,000 | 9,003,000 | |
Municipal securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities available-for-sale, at fair value | 0 | 0 | |
Municipal securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities available-for-sale, at fair value | 15,584,000 | 9,003,000 | |
Municipal securities [Member] | Significant Other Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities available-for-sale, at fair value | $ 0 | $ 0 |
Fair Value Disclosures - Asse91
Fair Value Disclosures - Assets and Liabilities Measured on Nonrecurring Basis (Q2) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Impaired loans | $ 407 | $ 769 | $ 239 |
Foreclosed assets | 3,524 | 3,254 | 2,386 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Impaired loans | 0 | 0 | 0 |
Foreclosed assets | 0 | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Impaired loans | 0 | 0 | 0 |
Foreclosed assets | 0 | 0 | 0 |
Significant Other Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Impaired loans | 407 | 769 | 239 |
Foreclosed assets | $ 3,524 | $ 3,254 | $ 2,386 |
Fair Value Disclosures - Fair V
Fair Value Disclosures - Fair Value Disclosures - Unobservable Inputs (Q2) (Details) | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans | $ 407,000 | $ 769,000 | $ 239,000 |
Foreclosed assets | 3,524,239 | 3,254,392 | 2,386,239 |
Level 3 [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans | $ 407,000 | $ 769,000 | $ 239,000 |
Weighted Average [Member] | Level 3 [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, measurement input | 0.47 | 0.36 | |
Foreclosed assets, measurement input | 0.19 | 0.18 |
Fair Value Disclosures - Carryi
Fair Value Disclosures - Carrying Amount and Estimated Fair Value of Financial Instruments (Q2) (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets: | |||
Securities available-for-sale, at fair value | $ 156,577,182 | $ 151,944,567 | $ 129,421,914 |
Restricted investments | 8,272,600 | 6,430,700 | 5,627,950 |
Liabilities: | |||
Noninterest-bearing demand deposits | 301,317,854 | 220,520,287 | 153,482,650 |
Interest-bearing demand deposits | 246,942,432 | 231,643,508 | 162,702,457 |
Time deposits | 535,879,278 | 442,774,094 | 316,275,340 |
Federal Home Loan Bank advances and other borrowings | 0 | 5,765 | |
Level 1 [Member] | |||
Assets: | |||
Cash and cash equivalents | 170,235,000 | 113,027,000 | |
Securities available-for-sale, at fair value | 0 | 0 | |
Level 2 [Member] | |||
Assets: | |||
Securities available-for-sale, at fair value | 156,577,000 | 151,944,000 | |
Liabilities: | |||
Noninterest-bearing demand deposits | 301,318,000 | 220,520,000 | |
Interest-bearing demand deposits | 246,942,000 | 231,644,000 | |
Money Market and Savings deposits | 632,518,000 | 543,645,000 | |
Time deposits | 537,006,000 | 443,547,000 | |
Securities sold under agreements to repurchase | 18,635,000 | 24,055,000 | |
Federal Home Loan Bank advances and other borrowings | 72,040,000 | 43,600,000 | |
Level 3 [Member] | |||
Assets: | |||
Securities available-for-sale, at fair value | 0 | 0 | |
Loans, net | 1,569,916,000 | 1,292,303,000 | |
Carrying Amount [Member] | |||
Assets: | |||
Cash and cash equivalents | 170,235,000 | 113,027,000 | 68,748,000 |
Securities available-for-sale, at fair value | 156,577,000 | 151,944,000 | |
Restricted investments | 8,273,000 | 6,431,000 | |
Loans, net | 1,568,361,000 | 1,317,398,000 | 808,271,000 |
Liabilities: | |||
Noninterest-bearing demand deposits | 301,318,000 | 220,520,000 | |
Interest-bearing demand deposits | 246,942,000 | 231,644,000 | |
Money Market and Savings deposits | 632,518,000 | 543,645,000 | 274,605,000 |
Time deposits | 535,879,000 | 442,774,000 | |
Securities sold under agreements to repurchase | 18,635,000 | 24,055,000 | 26,622,000 |
Federal Home Loan Bank advances and other borrowings | 72,040,000 | 43,600,000 | |
Estimated Fair Value [Member] | |||
Assets: | |||
Cash and cash equivalents | 170,235,000 | 113,027,000 | 68,748,000 |
Securities available-for-sale, at fair value | 156,577,000 | 151,944,000 | |
Loans, net | 1,569,916,000 | 1,292,303,000 | 803,057,000 |
Liabilities: | |||
Noninterest-bearing demand deposits | 301,318,000 | 250,520,000 | |
Interest-bearing demand deposits | 246,942,000 | 231,644,000 | |
Money Market and Savings deposits | 632,518,000 | 543,645,000 | 274,605,000 |
Time deposits | 537,006,000 | 443,547,000 | |
Securities sold under agreements to repurchase | 18,635,000 | 24,055,000 | $ 26,622,000 |
Federal Home Loan Bank advances and other borrowings | $ 72,040,000 | $ 43,600,000 |
Small Business Lending Fund (94
Small Business Lending Fund (Q2) (Details) - USD ($) | Mar. 06, 2017 | Jan. 30, 2017 | Feb. 04, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2011 |
Class of Stock [Line Items] | |||||||||||
Preferred stock, shares issued (in shares) | 0 | 0 | 0 | 12,000 | |||||||
Preferred stock, dividend rate (as a percent) | 9.00% | 9.00% | 1.00% | ||||||||
Preferred stock dividends | $ 0 | $ 0 | $ 0 | $ 195,000 | $ 195,000 | $ 1,022,000 | $ 120,000 | ||||
Proceeds from issuance of common stock | 1,079,979 | 37,591,479 | 37,852,113 | 803,957 | |||||||
Payments for redemption of preferred stock | $ 12,000,000 | ||||||||||
Payment of dividends on preferred stock | $ 195,000 | $ 0 | $ 195,000 | $ 195,000 | $ 752,000 | ||||||
SBLF Program [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred stock, shares issued (in shares) | 12,000 | 12,000 | |||||||||
Share price (in dollars per share) | $ 1,000 | $ 1,000 | |||||||||
Common Stock [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Issuance of common stock in public offering (in shares) | 2,010,084 | ||||||||||
Proceeds from issuance of common stock | $ 33,200,000 |
Related Party Transactions (Q95
Related Party Transactions (Q2) (Details) - Director [Member] | Mar. 01, 2018Director$ / sharesshares |
Related Party Transaction [Line Items] | |
Number of shares sold (in shares) | 21,250 |
Number of directors | Director | 2 |
Price per share (in dollars per share) | $ / shares | $ 21.70 |
Steven B. Tucker [Member] | |
Related Party Transaction [Line Items] | |
Stock purchased (in shares) | 6,250 |
W. Miller Welborn [Member] | |
Related Party Transaction [Line Items] | |
Stock purchased (in shares) | 15,000 |
Subsequent Events (Q2) (Details
Subsequent Events (Q2) (Details) - USD ($) | 6 Months Ended | |||||
Jun. 30, 2018 | Jun. 27, 2018 | Jun. 26, 2018 | May 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Subsequent Event [Line Items] | ||||||
Common Stock, Shares, Outstanding | 12,704,581 | 11,152,561 | 5,896,033 | |||
Foothills Bancorp [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Cash paid upon conversion (in dollars per share) | $ 1.75 | |||||
Common shares converted (in shares) | 0.666 | |||||
Common Stock, Shares, Outstanding | 1,776,925 | |||||
Termination fee | $ 1,450,000 | |||||
Tennessee Bancshares [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Common shares converted (in shares) | 0.8065 |
Summary of Significant Accoun97
Summary of Significant Accounting Policies (FY) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Line Items] | ||||||
Federal Reserve Bank, reserve requirement | $ 16,546,000 | $ 15,208,000 | ||||
Foreclosed assets | $ 3,524,239 | $ 3,524,239 | 3,254,392 | 2,386,239 | ||
Amortization of intangible assets | 228,866 | $ 61,071 | 416,623 | $ 113,648 | 346,435 | 305,452 |
Impairment of intangible assets | 0 | |||||
Advertising Expense | 214,632 | $ 129,398 | 399,107 | $ 293,659 | 637,600 | 615,751 |
Residential Real Estate [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Foreclosed assets | $ 1,140,000 | $ 1,140,000 | 545,750 | 1,500 | ||
Mortgage loans in process of foreclosure | $ 0 | $ 0 | ||||
Minimum [Member] | Building and Leasehold Improvements [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Useful life | 15 years | |||||
Minimum [Member] | Furniture and Equipment [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Useful life | 3 years | |||||
Maximum [Member] | Building and Leasehold Improvements [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Useful life | 40 years | |||||
Maximum [Member] | Furniture and Equipment [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Useful life | 7 years |
Business Combination (FY) (Deta
Business Combination (FY) (Details Textual) - USD ($) | Nov. 01, 2017 | May 19, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||||||
Total consideration in cash | $ 15,826,000 | ||||||
Ownership interest (as a percent) | 74.00% | ||||||
Pro forma, nonrecurring costs | $ 38,000,000 | ||||||
Pro forma, revenue of acquiree since acquisition date, actual | $ 5,000,000 | ||||||
Pro forma information, earnings (loss) since acquisition date, actual | 200,000 | ||||||
Pro forma revenue | 24,900,000 | ||||||
Pro forma net income (loss) | 947,000 | ||||||
Atlantic Capital Bank, N.A. [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Total consideration in cash | $ 1,183,007 | ||||||
Pro forma, revenue of acquiree since acquisition date, actual | $ 381,000 | $ 754,000 | 903,311 | ||||
Pro forma information, earnings (loss) since acquisition date, actual | 105,000 | 194,000 | $ 63,385 | ||||
Capstone Bancshares Inc. [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Total consideration in cash | $ 15,826,000 | ||||||
Exchange of shares | 0.85 | ||||||
Cash payment per share (in dollars per share) | $ 18.50 | ||||||
Percentage of common stock consideration transferred | 80.00% | ||||||
Percentage of cash consideration transferred | 20.00% | ||||||
Pro forma, revenue of acquiree since acquisition date, actual | 7,600,000 | 14,500,000 | |||||
Pro forma information, earnings (loss) since acquisition date, actual | $ 3,400,000 | $ 6,000,000 | |||||
Pro forma revenue | $ 6,200,000 | $ 12,500,000 | |||||
Pro forma net income (loss) | $ 237,000 | $ 473,000 |
Business Combination Business C
Business Combination Business Combination (Allocation of Purchase Price) (FY) (Details) - USD ($) | Nov. 01, 2017 | May 19, 2017 | Aug. 31, 2015 |
Business Acquisition [Line Items] | |||
Total consideration in cash | $ 15,826,000 | ||
Fair value of assets acquired and liabilities assumed: | |||
Cash and cash equivalents | 16,810,000 | ||
Premises and equipment | 8,668,000 | ||
Prepaid and other assets | 6,360,000 | ||
Total fair value of net assets acquired | 47,675,000 | ||
Goodwill | $ 38,047,000 | $ 42,873,689 | |
Atlantic Capital Bank, N.A. [Member] | |||
Business Acquisition [Line Items] | |||
Total consideration in cash | $ 1,183,007 | ||
Fair value of assets acquired and liabilities assumed: | |||
Cash and cash equivalents | 133,000 | ||
Loans | 24,073,000 | ||
Premises and equipment | 2,839,000 | ||
Core deposit intangible | 310,000 | ||
Prepaid and other assets | 77,000 | ||
Deposits | (26,888,000) | ||
Payables and other liabilities | (21,000) | ||
Total fair value of net assets acquired | 523,000 | ||
Goodwill | $ 660,000 |
Business Combination (FY) (D100
Business Combination (FY) (Details) - USD ($) | Nov. 01, 2017 | Aug. 31, 2015 |
Business Combinations [Abstract] | ||
Shares of SMBK common stock issued to Capstone shareholders as of November 1, 2017 | $ 2,908,094 | |
Market price of SMBK common stock on November 1, 2017 | $ 23.49 | |
Estimated fair value of SMBK common stock issued | $ 68,311,000 | |
Estimated fair value of Capstone stock options | 1,585,000 | |
Total consideration in cash | 15,826,000 | |
Total consideration | 85,722,000 | |
Fair value of assets acquired and liabilities assumed: | ||
Cash and cash equivalents | 16,810,000 | |
Investment securities available for sale | 51,638,000 | |
Restricted investments | 1,049,000 | |
Loans | 413,023,000 | |
Premises and equipment | 8,668,000 | |
Bank owned life insurance | 10,031,000 | |
Core deposit intangible | 5,530,000 | |
Other real estate owned | 410,000 | |
Prepaid and other assets | 6,360,000 | |
Deposits | (454,154,000) | |
FHLB advances and other borrowings | (4,887,000) | |
Payables and other liabilities | (6,803,000) | |
Total fair value of net assets acquired | 47,675,000 | |
Goodwill | $ 38,047,000 | $ 42,873,689 |
Securities (FY) (Details)
Securities (FY) (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Debt securities available-for-sale: | |||
Amortized Cost | $ 160,547,000 | $ 153,566,000 | $ 131,046,000 |
Gross Unrealized Gains | 165,000 | 209,000 | |
Gross Unrealized Losses | (1,787,000) | (1,833,000) | |
Fair Value | 151,944,000 | 129,422,000 | |
U.S. Government-sponsored enterprises (GSEs) [Member] | |||
Debt securities available-for-sale: | |||
Amortized Cost | 29,137,000 | 26,207,000 | 18,279,000 |
Gross Unrealized Gains | 1,000 | 8,000 | |
Gross Unrealized Losses | (432,000) | (564,000) | |
Fair Value | 25,776,000 | 17,723,000 | |
Muncipal Securities [Member] | |||
Debt securities available-for-sale: | |||
Amortized Cost | 9,122,000 | 8,182,000 | |
Gross Unrealized Gains | 28,000 | 16,000 | |
Gross Unrealized Losses | (147,000) | (179,000) | |
Fair Value | 9,003,000 | 8,019,000 | |
Other Debt Securities [Member] | |||
Debt securities available-for-sale: | |||
Amortized Cost | $ 976,000 | 974,000 | |
Gross Unrealized Gains | 0 | ||
Gross Unrealized Losses | (24,000) | ||
Fair Value | 950,000 | ||
Mortgage Backed Securities [Member] | |||
Debt securities available-for-sale: | |||
Amortized Cost | 117,263,000 | 104,585,000 | |
Gross Unrealized Gains | 136,000 | 185,000 | |
Gross Unrealized Losses | (1,184,000) | (1,090,000) | |
Fair Value | $ 116,215,000 | $ 103,680,000 |
Securities (FY) (Details 1)
Securities (FY) (Details 1) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Investments, Debt and Equity Securities [Abstract] | |||
Due in one year or less, Amortized Cost | $ 0 | $ 2,174,000 | |
Due from one year to five years, Amortized Cost | 21,554,000 | 21,606,000 | |
Due from five years to ten years, Amortized Cost | 13,995,000 | 8,037,000 | |
Due after ten years, Amortized Cost | 10,460,000 | 4,486,000 | |
Securities Available for Sale, Debt Securities, Amortized Cost | 46,009,000 | 36,303,000 | |
Mortgage-backed securities, Amortized Cost | 117,263,000 | ||
Amortized Cost | 160,547,000 | 153,566,000 | $ 131,046,000 |
Due in one year or less, Fair Value | 0 | 2,175,000 | |
Due from one year to five years, Fair Value | 20,901,000 | 21,292,000 | |
Due from five years to ten years, Fair Value | 13,366,000 | 7,822,000 | |
Due after ten years, Fair Value | 10,356,000 | 4,440,000 | |
Securities Available for Sale, Debt Securities, Fair Value | 44,623,000 | 35,729,000 | |
Mortgage-backed securities, Fair Value | 116,215,000 | ||
Securities available for sale | $ 156,577,182 | $ 151,944,567 | $ 129,421,914 |
Securities (FY) (Details 2)
Securities (FY) (Details 2) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Debt securities available-for-sale: | |||
Less than 12 Months, Fair Value | $ 67,058 | $ 88,133 | |
Less than 12 Months, Gross Unrealized Losses | $ (2,261) | (475) | (1,433) |
12 Months or Greater, Fair Value | 50,580 | 8,948 | |
12 Months or Greater, Gross Unrealized Losses | (1,888) | (1,312) | (400) |
Total, Fair Value | 117,638 | 97,081 | |
Total, Gross Unrealized Losses | (4,149) | (1,787) | (1,833) |
U.S. Government-sponsored enterprises (GSEs) [Member] | |||
Debt securities available-for-sale: | |||
Less than 12 Months, Fair Value | 1,358 | 14,702 | |
Less than 12 Months, Gross Unrealized Losses | (425) | (1) | (564) |
12 Months or Greater, Fair Value | 13,420 | 0 | |
12 Months or Greater, Gross Unrealized Losses | (584) | (431) | 0 |
Total, Fair Value | 14,778 | 14,702 | |
Total, Gross Unrealized Losses | (1,009) | (432) | (564) |
Muncipal Securities [Member] | |||
Debt securities available-for-sale: | |||
Less than 12 Months, Fair Value | 3,418 | 6,368 | |
Less than 12 Months, Gross Unrealized Losses | (43) | (179) | |
12 Months or Greater, Fair Value | 2,112 | 0 | |
12 Months or Greater, Gross Unrealized Losses | (104) | 0 | |
Total, Fair Value | 5,530 | 6,368 | |
Total, Gross Unrealized Losses | (147) | (179) | |
Other Debt Securities [Member] | |||
Debt securities available-for-sale: | |||
Less than 12 Months, Fair Value | 950 | ||
Less than 12 Months, Gross Unrealized Losses | 0 | (24) | |
12 Months or Greater, Fair Value | 0 | ||
12 Months or Greater, Gross Unrealized Losses | (65) | 0 | |
Total, Fair Value | 950 | ||
Total, Gross Unrealized Losses | (65) | (24) | |
Mortgage Backed Securities [Member] | |||
Debt securities available-for-sale: | |||
Less than 12 Months, Fair Value | 61,332 | 67,063 | |
Less than 12 Months, Gross Unrealized Losses | (1,654) | (407) | (690) |
12 Months or Greater, Fair Value | 35,048 | 8,948 | |
12 Months or Greater, Gross Unrealized Losses | (1,101) | (777) | (400) |
Total, Fair Value | 96,380 | 76,011 | |
Total, Gross Unrealized Losses | $ (2,755) | $ (1,184) | $ (1,090) |
Securities (FY) (Details 3)
Securities (FY) (Details 3) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds | $ 12,614 | $ 31,599 |
Gains realized | 145 | 200 |
Losses realized | $ 2 | $ 0 |
Securities (FY) (Details Textua
Securities (FY) (Details Textual) | Dec. 31, 2017USD ($)investment | Dec. 31, 2016USD ($) |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities pledged as collateral | $ | $ 97,160,059 | $ 86,351,097 |
U.S. Government-sponsored enterprises (GSEs) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities in unrealized loss positions (Number of investments) | 6 | |
Muncipal Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities in unrealized loss positions (Number of investments) | 13 | |
Other Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities in unrealized loss positions (Number of investments) | 1 | |
Mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities in unrealized loss positions (Number of investments) | 60 |
Loans and Allowance for Loan106
Loans and Allowance for Loan Losses (FY) (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 1,575,435,000 | $ 1,323,258,000 | $ 813,376,000 | |
Less: Allowance for loan losses | (7,073,937) | (5,860,291) | (5,105,000) | $ (4,354,000) |
Loans, net | 1,568,360,556 | 1,317,397,909 | 808,271,003 | |
Commercial Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 745,864,000 | 642,988,000 | 415,208,000 | |
Less: Allowance for loan losses | (3,135,000) | (2,465,000) | (2,369,000) | (1,906,000) |
Consumer Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 355,876,000 | 293,457,000 | 187,802,000 | |
Less: Allowance for loan losses | (1,528,000) | (1,596,000) | (1,382,000) | (1,015,000) |
Construction and Land Development [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 179,431,000 | 135,409,000 | 117,869,000 | |
Less: Allowance for loan losses | (744,000) | (521,000) | (717,000) | (627,000) |
Commercial and Industrial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 279,771,000 | 238,087,000 | 85,022,000 | |
Less: Allowance for loan losses | (1,367,000) | (1,062,000) | (520,000) | (777,000) |
Consumer and Other [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 14,493,000 | 13,317,000 | 7,475,000 | |
Less: Allowance for loan losses | (300,000) | (216,000) | (117,000) | $ (29,000) |
Purchased Credit Impaired Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 32,658,000 | 32,794,000 | 27,193,000 | |
Less: Allowance for loan losses | (19,000) | (16,000) | 0 | |
Loans, net | 32,639,000 | 32,778,000 | 27,193,000 | |
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 18,474,000 | 17,903,000 | 14,943,000 | |
Less: Allowance for loan losses | (19,000) | (16,000) | 0 | |
Purchased Credit Impaired Loans [Member] | Consumer Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 6,987,000 | 7,450,000 | 9,004,000 | |
Less: Allowance for loan losses | 0 | 0 | 0 | |
Purchased Credit Impaired Loans [Member] | Construction and Land Development [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 5,690,000 | 5,120,000 | 1,678,000 | |
Less: Allowance for loan losses | 0 | 0 | 0 | |
Purchased Credit Impaired Loans [Member] | Commercial and Industrial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 821,000 | 858,000 | 1,568,000 | |
Less: Allowance for loan losses | 0 | 0 | 0 | |
Purchased Credit Impaired Loans [Member] | Consumer and Other [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 686,000 | 1,463,000 | 0 | |
Less: Allowance for loan losses | 0 | 0 | 0 | |
All Other Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 1,542,777,000 | 1,290,464,000 | 786,183,000 | |
Less: Allowance for loan losses | (7,055,000) | (5,844,000) | (5,105,000) | |
Loans, net | 1,535,722,000 | 1,284,620,000 | 781,078,000 | |
All Other Loans [Member] | Commercial Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 727,390,000 | 625,085,000 | 400,265,000 | |
All Other Loans [Member] | Consumer Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 348,889,000 | 286,007,000 | 178,798,000 | |
All Other Loans [Member] | Construction and Land Development [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 173,741,000 | 130,289,000 | 116,191,000 | |
All Other Loans [Member] | Commercial and Industrial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 278,950,000 | 237,229,000 | 83,454,000 | |
All Other Loans [Member] | Consumer and Other [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 13,807,000 | $ 11,854,000 | $ 7,475,000 |
Loans and Allowance for Loan107
Loans and Allowance for Loan Losses (FY) (Details 1) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | $ 1,575,435 | $ 1,323,258 | $ 813,376 |
All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 1,542,777 | 1,290,464 | 786,183 |
All Other Loans [Member] | Performing [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 1,539,572 | 1,287,823 | 784,168 |
All Other Loans [Member] | Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 3,205 | 2,641 | 2,015 |
Purchased Credit Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 32,658 | 32,794 | 27,193 |
Commercial Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 745,864 | 642,988 | 415,208 |
Commercial Real Estate [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 727,390 | 625,085 | 400,265 |
Commercial Real Estate [Member] | All Other Loans [Member] | Performing [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 726,356 | 624,638 | 400,146 |
Commercial Real Estate [Member] | All Other Loans [Member] | Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 1,034 | 447 | 119 |
Commercial Real Estate [Member] | Purchased Credit Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 18,474 | 17,903 | 14,943 |
Consumer Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 355,876 | 293,457 | 187,802 |
Consumer Real Estate [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 348,889 | 286,007 | 178,798 |
Consumer Real Estate [Member] | All Other Loans [Member] | Performing [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 347,893 | 284,585 | 177,977 |
Consumer Real Estate [Member] | All Other Loans [Member] | Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 996 | 1,422 | 821 |
Consumer Real Estate [Member] | Purchased Credit Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 6,987 | 7,450 | 9,004 |
Construction and Land Development [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 179,431 | 135,409 | 117,869 |
Construction and Land Development [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 173,741 | 130,289 | 116,191 |
Construction and Land Development [Member] | All Other Loans [Member] | Performing [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 173,194 | 129,742 | 115,326 |
Construction and Land Development [Member] | All Other Loans [Member] | Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 547 | 547 | 865 |
Construction and Land Development [Member] | Purchased Credit Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 5,690 | 5,120 | 1,678 |
Commercial and Industrial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 279,771 | 238,087 | 85,022 |
Commercial and Industrial [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 278,950 | 237,229 | 83,454 |
Commercial and Industrial [Member] | All Other Loans [Member] | Performing [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 278,431 | 237,016 | 83,244 |
Commercial and Industrial [Member] | All Other Loans [Member] | Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 519 | 213 | 210 |
Commercial and Industrial [Member] | Purchased Credit Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 821 | 858 | 1,568 |
Consumer and Other [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 14,493 | 13,317 | 7,475 |
Consumer and Other [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 13,807 | 11,854 | 7,475 |
Consumer and Other [Member] | All Other Loans [Member] | Performing [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 13,698 | 11,842 | 7,475 |
Consumer and Other [Member] | All Other Loans [Member] | Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 109 | 12 | 0 |
Consumer and Other [Member] | Purchased Credit Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | $ 686 | $ 1,463 | $ 0 |
Loans and Allowance for Loan108
Loans and Allowance for Loan Losses (FY) (Details 2) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | $ 7,073,937 | $ 5,860,291 | $ 5,105,000 | $ 4,354,000 |
All Other Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 7,055,000 | 5,844,000 | 5,105,000 | |
All Other Loans [Member] | Performing [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 6,720,000 | 5,399,000 | 5,101,000 | |
All Other Loans [Member] | Impaired Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 335,000 | 445,000 | 4,000 | |
Purchased Credit Impaired Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 19,000 | 16,000 | 0 | |
Commercial Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 3,135,000 | 2,465,000 | 2,369,000 | 1,906,000 |
Commercial Real Estate [Member] | All Other Loans [Member] | Performing [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 3,116,000 | 2,444,000 | 2,369,000 | |
Commercial Real Estate [Member] | All Other Loans [Member] | Impaired Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 0 | 5,000 | 0 | |
Commercial Real Estate [Member] | Purchased Credit Impaired Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 19,000 | 16,000 | 0 | |
Consumer Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 1,528,000 | 1,596,000 | 1,382,000 | 1,015,000 |
Consumer Real Estate [Member] | All Other Loans [Member] | Performing [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 1,491,000 | 1,340,000 | 1,382,000 | |
Consumer Real Estate [Member] | All Other Loans [Member] | Impaired Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 37,000 | 256,000 | 0 | |
Consumer Real Estate [Member] | Purchased Credit Impaired Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 0 | 0 | 0 | |
Construction and Land Development [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 744,000 | 521,000 | 717,000 | 627,000 |
Construction and Land Development [Member] | All Other Loans [Member] | Performing [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 744,000 | 521,000 | 717,000 | |
Construction and Land Development [Member] | All Other Loans [Member] | Impaired Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 0 | 0 | 0 | |
Construction and Land Development [Member] | Purchased Credit Impaired Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 0 | 0 | 0 | |
Commercial and Industrial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 1,367,000 | 1,062,000 | 520,000 | 777,000 |
Commercial and Industrial [Member] | All Other Loans [Member] | Performing [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 1,145,000 | 890,000 | 516,000 | |
Commercial and Industrial [Member] | All Other Loans [Member] | Impaired Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 222,000 | 172,000 | 4,000 | |
Commercial and Industrial [Member] | Purchased Credit Impaired Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 0 | 0 | 0 | |
Consumer and Other [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 300,000 | 216,000 | 117,000 | $ 29,000 |
Consumer and Other [Member] | All Other Loans [Member] | Performing [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 224,000 | 204,000 | 117,000 | |
Consumer and Other [Member] | All Other Loans [Member] | Impaired Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | 76,000 | 12,000 | 0 | |
Consumer and Other [Member] | Purchased Credit Impaired Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | $ 0 | $ 0 | $ 0 |
Loans and Allowance for Loan109
Loans and Allowance for Loan Losses (FY) (Details 3) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | $ 5,860,291 | $ 5,105,000 | $ 5,105,000 | $ 4,354,000 |
Charged-off loans | (242,000) | (276,000) | (306,000) | |
Recoveries of loans charged off | 151,000 | 248,000 | 269,000 | |
Provision (reallocation) charged to operating expense | 1,305,397 | 310,482 | 782,687 | 787,545 |
Ending balance | 7,073,937 | 5,860,291 | 5,105,000 | |
Commercial Real Estate [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 2,465,000 | 2,369,000 | 2,369,000 | 1,906,000 |
Charged-off loans | (38,000) | 0 | 0 | |
Recoveries of loans charged off | 0 | 8,000 | 45,000 | |
Provision (reallocation) charged to operating expense | 708,000 | 88,000 | 418,000 | |
Ending balance | 3,135,000 | 2,465,000 | 2,369,000 | |
Consumer Real Estate [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 1,596,000 | 1,382,000 | 1,382,000 | 1,015,000 |
Charged-off loans | (25,000) | (111,000) | (102,000) | |
Recoveries of loans charged off | 50,000 | 99,000 | 76,000 | |
Provision (reallocation) charged to operating expense | (93,000) | 226,000 | 393,000 | |
Ending balance | 1,528,000 | 1,596,000 | 1,382,000 | |
Construction and Land Development [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 521,000 | 717,000 | 717,000 | 627,000 |
Charged-off loans | 0 | 0 | (14,000) | |
Recoveries of loans charged off | 5,000 | 13,000 | 22,000 | |
Provision (reallocation) charged to operating expense | 218,000 | (209,000) | 82,000 | |
Ending balance | 744,000 | 521,000 | 717,000 | |
Commercial and Industrial [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 1,062,000 | 520,000 | 520,000 | 777,000 |
Charged-off loans | (78,000) | (24,000) | (35,000) | |
Recoveries of loans charged off | 56,000 | 67,000 | 58,000 | |
Provision (reallocation) charged to operating expense | 327,000 | 499,000 | (280,000) | |
Ending balance | 1,367,000 | 1,062,000 | 520,000 | |
Consumer and Other [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 216,000 | $ 117,000 | 117,000 | 29,000 |
Charged-off loans | (101,000) | (141,000) | (155,000) | |
Recoveries of loans charged off | 40,000 | 61,000 | 68,000 | |
Provision (reallocation) charged to operating expense | 145,000 | 179,000 | 175,000 | |
Ending balance | $ 300,000 | $ 216,000 | $ 117,000 |
Loans and Allowance for Loan110
Loans and Allowance for Loan Losses (FY) (Details 4) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | $ 1,575,435 | $ 1,323,258 | $ 813,376 |
Purchased Credit Impaired Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 32,658 | 32,794 | 27,193 |
Purchased Credit Impaired Loans [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 23,800 | 23,558 | 21,173 |
Purchased Credit Impaired Loans [Member] | Watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 3,084 | 2,637 | 3,289 |
Purchased Credit Impaired Loans [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 2,854 | 538 | 12 |
Purchased Credit Impaired Loans [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 2,920 | 5,308 | 2,692 |
Purchased Credit Impaired Loans [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 753 | 27 |
All Other Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,542,777 | 1,290,464 | 786,183 |
All Other Loans [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,531,710 | 1,270,417 | 782,438 |
All Other Loans [Member] | Watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 5,992 | 13,668 | 1,531 |
All Other Loans [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,507 | 3,852 | 341 |
All Other Loans [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 3,529 | 2,241 | 1,873 |
All Other Loans [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 39 | 286 | 0 |
Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 745,864 | 642,988 | 415,208 |
Commercial Real Estate [Member] | Purchased Credit Impaired Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 18,474 | 17,903 | 14,943 |
Commercial Real Estate [Member] | Purchased Credit Impaired Loans [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 14,494 | 14,386 | 11,836 |
Commercial Real Estate [Member] | Purchased Credit Impaired Loans [Member] | Watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,513 | 261 | 1,045 |
Commercial Real Estate [Member] | Purchased Credit Impaired Loans [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,393 | 0 | 0 |
Commercial Real Estate [Member] | Purchased Credit Impaired Loans [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,074 | 3,084 | 2,062 |
Commercial Real Estate [Member] | Purchased Credit Impaired Loans [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 172 | 0 |
Commercial Real Estate [Member] | All Other Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 727,390 | 625,085 | 400,265 |
Commercial Real Estate [Member] | All Other Loans [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 724,763 | 616,028 | 399,505 |
Commercial Real Estate [Member] | All Other Loans [Member] | Watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,604 | 7,673 | 640 |
Commercial Real Estate [Member] | All Other Loans [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 1,006 | 0 |
Commercial Real Estate [Member] | All Other Loans [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,023 | 378 | 120 |
Commercial Real Estate [Member] | All Other Loans [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | 0 |
Consumer Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 355,876 | 293,457 | 187,802 |
Consumer Real Estate [Member] | Purchased Credit Impaired Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 6,987 | 7,450 | 9,004 |
Consumer Real Estate [Member] | Purchased Credit Impaired Loans [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 4,558 | 4,151 | 6,811 |
Consumer Real Estate [Member] | Purchased Credit Impaired Loans [Member] | Watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 898 | 1,345 | 1,577 |
Consumer Real Estate [Member] | Purchased Credit Impaired Loans [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 575 | 456 | 0 |
Consumer Real Estate [Member] | Purchased Credit Impaired Loans [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 956 | 1,192 | 616 |
Consumer Real Estate [Member] | Purchased Credit Impaired Loans [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 306 | 0 |
Consumer Real Estate [Member] | All Other Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 348,889 | 286,007 | 178,798 |
Consumer Real Estate [Member] | All Other Loans [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 343,407 | 279,464 | 177,466 |
Consumer Real Estate [Member] | All Other Loans [Member] | Watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 3,168 | 2,543 | 550 |
Consumer Real Estate [Member] | All Other Loans [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 949 | 2,627 | 104 |
Consumer Real Estate [Member] | All Other Loans [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,365 | 1,159 | 678 |
Consumer Real Estate [Member] | All Other Loans [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 214 | 0 |
Construction and Land Development [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 179,431 | 135,409 | 117,869 |
Construction and Land Development [Member] | Purchased Credit Impaired Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 5,690 | 5,120 | 1,678 |
Construction and Land Development [Member] | Purchased Credit Impaired Loans [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 3,973 | 4,134 | 1,019 |
Construction and Land Development [Member] | Purchased Credit Impaired Loans [Member] | Watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 653 | 649 | 645 |
Construction and Land Development [Member] | Purchased Credit Impaired Loans [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 716 | 0 | 0 |
Construction and Land Development [Member] | Purchased Credit Impaired Loans [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 348 | 337 | 14 |
Construction and Land Development [Member] | Purchased Credit Impaired Loans [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | 0 |
Construction and Land Development [Member] | All Other Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 173,741 | 130,289 | 116,191 |
Construction and Land Development [Member] | All Other Loans [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 172,972 | 129,359 | 115,237 |
Construction and Land Development [Member] | All Other Loans [Member] | Watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 62 | 383 | 89 |
Construction and Land Development [Member] | All Other Loans [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 160 | 0 | 0 |
Construction and Land Development [Member] | All Other Loans [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 547 | 547 | 865 |
Construction and Land Development [Member] | All Other Loans [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | 0 |
Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 279,771 | 238,087 | 85,022 |
Commercial and Industrial [Member] | Purchased Credit Impaired Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 821 | 858 | 1,568 |
Commercial and Industrial [Member] | Purchased Credit Impaired Loans [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 210 | 68 | 1,507 |
Commercial and Industrial [Member] | Purchased Credit Impaired Loans [Member] | Watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 2 | 120 | 22 |
Commercial and Industrial [Member] | Purchased Credit Impaired Loans [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 153 | 58 | 12 |
Commercial and Industrial [Member] | Purchased Credit Impaired Loans [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 456 | 588 | 0 |
Commercial and Industrial [Member] | Purchased Credit Impaired Loans [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 24 | 27 |
Commercial and Industrial [Member] | All Other Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 278,950 | 237,229 | 83,454 |
Commercial and Industrial [Member] | All Other Loans [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 277,384 | 233,942 | 82,992 |
Commercial and Industrial [Member] | All Other Loans [Member] | Watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,035 | 3,007 | 252 |
Commercial and Industrial [Member] | All Other Loans [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 35 | 64 | 0 |
Commercial and Industrial [Member] | All Other Loans [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 483 | 157 | 210 |
Commercial and Industrial [Member] | All Other Loans [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 13 | 59 | 0 |
Consumer and Other [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 14,493 | 13,317 | 7,475 |
Consumer and Other [Member] | Purchased Credit Impaired Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 686 | 1,463 | 0 |
Consumer and Other [Member] | Purchased Credit Impaired Loans [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 565 | 819 | 0 |
Consumer and Other [Member] | Purchased Credit Impaired Loans [Member] | Watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 18 | 262 | 0 |
Consumer and Other [Member] | Purchased Credit Impaired Loans [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 17 | 24 | 0 |
Consumer and Other [Member] | Purchased Credit Impaired Loans [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 86 | 107 | 0 |
Consumer and Other [Member] | Purchased Credit Impaired Loans [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 251 | 0 |
Consumer and Other [Member] | All Other Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 13,807 | 11,854 | 7,475 |
Consumer and Other [Member] | All Other Loans [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 13,184 | 11,624 | 7,238 |
Consumer and Other [Member] | All Other Loans [Member] | Watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 123 | 62 | 0 |
Consumer and Other [Member] | All Other Loans [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 363 | 155 | 237 |
Consumer and Other [Member] | All Other Loans [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 111 | 0 | 0 |
Consumer and Other [Member] | All Other Loans [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | $ 26 | $ 13 | $ 0 |
Loans and Allowance for Loan111
Loans and Allowance for Loan Losses (FY) (Details 5) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | $ 1,538 | $ 1,764 | $ 1,415 |
Total Past Due and Nonaccrual | 6,773 | 5,269 | 4,168 |
Current Loans | 1,536,004 | 1,285,195 | 782,015 |
Total loans | 1,575,435 | 1,323,258 | 813,376 |
Purchased Credit Impaired Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans | 32,658 | 32,794 | 27,193 |
Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 6 | 128 | 0 |
Total Past Due and Nonaccrual | 2,716 | 1,373 | 395 |
Current Loans | 724,674 | 623,712 | 399,870 |
Total loans | 745,864 | 642,988 | 415,208 |
Commercial Real Estate [Member] | Purchased Credit Impaired Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans | 18,474 | 17,903 | 14,943 |
Consumer Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 463 | 991 | 386 |
Total Past Due and Nonaccrual | 1,240 | 1,987 | 1,780 |
Current Loans | 347,649 | 284,020 | 177,018 |
Total loans | 355,876 | 293,457 | 187,802 |
Consumer Real Estate [Member] | Purchased Credit Impaired Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans | 6,987 | 7,450 | 9,004 |
Construction and Land Development [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 547 | 547 | 865 |
Total Past Due and Nonaccrual | 1,288 | 938 | 1,555 |
Current Loans | 172,453 | 129,351 | 114,636 |
Total loans | 179,431 | 135,409 | 117,869 |
Construction and Land Development [Member] | Purchased Credit Impaired Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans | 5,690 | 5,120 | 1,678 |
Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 430 | 85 | 164 |
Total Past Due and Nonaccrual | 1,190 | 502 | 421 |
Current Loans | 277,760 | 236,727 | 83,033 |
Total loans | 279,771 | 238,087 | 85,022 |
Commercial and Industrial [Member] | Purchased Credit Impaired Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans | 821 | 858 | 1,568 |
Consumer and Other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 92 | 13 | 0 |
Total Past Due and Nonaccrual | 339 | 469 | 17 |
Current Loans | 13,468 | 11,385 | 7,458 |
Total loans | 14,493 | 13,317 | 7,475 |
Consumer and Other [Member] | Purchased Credit Impaired Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans | 686 | 1,463 | 0 |
30 to 89 Days Past Due and Accruing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Recorded investment, past due | 4,568 | 1,996 | 2,054 |
30 to 89 Days Past Due and Accruing [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Recorded investment, past due | 2,628 | 517 | 395 |
30 to 89 Days Past Due and Accruing [Member] | Consumer Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Recorded investment, past due | 701 | 963 | 695 |
30 to 89 Days Past Due and Accruing [Member] | Construction and Land Development [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Recorded investment, past due | 403 | 65 | 690 |
30 to 89 Days Past Due and Accruing [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Recorded investment, past due | 647 | 286 | 257 |
30 to 89 Days Past Due and Accruing [Member] | Consumer and Other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Recorded investment, past due | 189 | 165 | 17 |
Past Due 90 Days or More and Accruing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Recorded investment, past due | 667 | 1,509 | 699 |
Past Due 90 Days or More and Accruing [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Recorded investment, past due | 82 | 728 | 0 |
Past Due 90 Days or More and Accruing [Member] | Consumer Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Recorded investment, past due | 76 | 33 | 699 |
Past Due 90 Days or More and Accruing [Member] | Construction and Land Development [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Recorded investment, past due | 338 | 326 | 0 |
Past Due 90 Days or More and Accruing [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Recorded investment, past due | 113 | 131 | 0 |
Past Due 90 Days or More and Accruing [Member] | Consumer and Other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Recorded investment, past due | $ 58 | $ 291 | $ 0 |
Loans and Allowance for Loan112
Loans and Allowance for Loan Losses (FY) (Details 6) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Impaired [Line Items] | |||
Impaired loans with a valuation allowance, Related Allowance | $ 354 | $ 461 | |
Total impaired loans, Recorded Investment | 3,232 | 2,657 | |
Total impaired loans, Unpaid Principal Balance | 3,390 | 2,826 | |
Total impaired loans, Average Recorded Investment | 2,963 | 2,005 | |
Total impaired loans, Interest Income Recognized | 51 | 129 | |
All Other Loans [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loans without a valuation allowance, Recorded Investment | 2,471 | 1,427 | $ 1,851 |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 2,512 | 1,462 | 1,879 |
Impaired loans without a valuation allowance, Average Recorded Investment | 1,979 | 1,277 | 4,659 |
Impaired loans without a valuation allowance, Interest Income Recognized | 30 | 63 | 180 |
Impaired loans with a valuation allowance, Recorded Investment | 734 | 1,214 | 164 |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 751 | 1,241 | 243 |
Impaired loans with a valuation allowance, Related Allowance | 335 | 445 | 4 |
Impaired loans with a valuation allowance, Average Recorded Investment | 979 | 725 | 306 |
Impaired loans with a valuation allowance, Interest Income Recognized | 18 | 50 | 70 |
Total impaired loans, Recorded Investment | 2,015 | ||
Total impaired loans, Unpaid Principal Balance | 2,122 | ||
Total impaired loans, Average Recorded Investment | 4,965 | ||
Total impaired loans, Interest Income Recognized | 250 | ||
All Other Loans [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loans without a valuation allowance, Recorded Investment | 1,034 | 424 | 119 |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 1,043 | 454 | 119 |
Impaired loans without a valuation allowance, Average Recorded Investment | 670 | 204 | 1,311 |
Impaired loans without a valuation allowance, Interest Income Recognized | 15 | 44 | 73 |
Impaired loans with a valuation allowance, Recorded Investment | 0 | 23 | 0 |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 0 | 23 | 0 |
Impaired loans with a valuation allowance, Related Allowance | 0 | 5 | 0 |
Impaired loans with a valuation allowance, Average Recorded Investment | 8 | 5 | 0 |
Impaired loans with a valuation allowance, Interest Income Recognized | 0 | 1 | 0 |
All Other Loans [Member] | Consumer Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loans without a valuation allowance, Recorded Investment | 793 | 415 | 821 |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 823 | 420 | 849 |
Impaired loans without a valuation allowance, Average Recorded Investment | 699 | 401 | 2,334 |
Impaired loans without a valuation allowance, Interest Income Recognized | 12 | 16 | 100 |
Impaired loans with a valuation allowance, Recorded Investment | 203 | 1,007 | 0 |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 216 | 1,033 | 0 |
Impaired loans with a valuation allowance, Related Allowance | 37 | 256 | 0 |
Impaired loans with a valuation allowance, Average Recorded Investment | 642 | 601 | 0 |
Impaired loans with a valuation allowance, Interest Income Recognized | 11 | 38 | 0 |
All Other Loans [Member] | Construction and Land Development [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loans without a valuation allowance, Recorded Investment | 547 | 547 | 865 |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 547 | 547 | 865 |
Impaired loans without a valuation allowance, Average Recorded Investment | 547 | 628 | 967 |
Impaired loans without a valuation allowance, Interest Income Recognized | 0 | 0 | 3 |
Impaired loans with a valuation allowance, Recorded Investment | 0 | 0 | 0 |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 0 | 0 | 0 |
Impaired loans with a valuation allowance, Related Allowance | 0 | 0 | 0 |
Impaired loans with a valuation allowance, Average Recorded Investment | 0 | 0 | 0 |
Impaired loans with a valuation allowance, Interest Income Recognized | 0 | 0 | 0 |
All Other Loans [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loans without a valuation allowance, Recorded Investment | 81 | 41 | 46 |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 83 | 41 | 46 |
Impaired loans without a valuation allowance, Average Recorded Investment | 58 | 44 | 47 |
Impaired loans without a valuation allowance, Interest Income Recognized | 3 | 3 | 4 |
Impaired loans with a valuation allowance, Recorded Investment | 438 | 172 | 164 |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 440 | 172 | 243 |
Impaired loans with a valuation allowance, Related Allowance | 222 | 172 | 4 |
Impaired loans with a valuation allowance, Average Recorded Investment | 257 | 117 | 306 |
Impaired loans with a valuation allowance, Interest Income Recognized | 5 | 10 | 70 |
All Other Loans [Member] | Consumer and Other [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loans without a valuation allowance, Recorded Investment | 16 | 0 | 0 |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 16 | 0 | 0 |
Impaired loans without a valuation allowance, Average Recorded Investment | 5 | 0 | 0 |
Impaired loans without a valuation allowance, Interest Income Recognized | 0 | 0 | 0 |
Impaired loans with a valuation allowance, Recorded Investment | 93 | 12 | 0 |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 95 | 13 | 0 |
Impaired loans with a valuation allowance, Related Allowance | 76 | 12 | 0 |
Impaired loans with a valuation allowance, Average Recorded Investment | 72 | 2 | 0 |
Impaired loans with a valuation allowance, Interest Income Recognized | 2 | 1 | $ 0 |
Purchased Credit Impaired Loans [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loans with a valuation allowance, Recorded Investment | 16 | ||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 123 | ||
Impaired loans with a valuation allowance, Related Allowance | 16 | ||
Impaired loans with a valuation allowance, Average Recorded Investment | 3 | ||
Impaired loans with a valuation allowance, Interest Income Recognized | 16 | ||
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loans with a valuation allowance, Related Allowance | 19 | 16 | |
Total impaired loans, Recorded Investment | 27 | 16 | |
Total impaired loans, Unpaid Principal Balance | 127 | 123 | |
Total impaired loans, Average Recorded Investment | 5 | 3 | |
Total impaired loans, Interest Income Recognized | $ 3 | $ 16 |
Loans and Allowance for Loan113
Loans and Allowance for Loan Losses (FY) (Details 7) - 12 months ended Dec. 31, 2017 $ in Thousands | USD ($) | Loan | contract |
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | 0 | 0 | |
Construction and Land Development [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 1 | ||
Pre-Modification Outstanding Recorded Investment | $ 278 | ||
Post-Modification Outstanding Recorded Investment | 278 | ||
Commercial and Industrial [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 1 | ||
Pre-Modification Outstanding Recorded Investment | 164 | ||
Post-Modification Outstanding Recorded Investment | $ 164 |
Loans and Allowance for Loan114
Loans and Allowance for Loan Losses (FY) (Details 8) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |||
Certain Loans Acquired In Transfer Not Accounted | $ 46,100 | $ 43,577 | |
Less remaining purchase discount | (13,442) | (10,783) | |
Total loans, net of purchase discount | 32,658 | 32,794 | |
Less: Allowance for loan losses | (19) | (16) | |
Carrying amount, net of allowance | 32,639 | 32,778 | |
Commercial Real Estate [Member] | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |||
Certain Loans Acquired In Transfer Not Accounted | 25,700 | 23,366 | |
Consumer Real Estate [Member] | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |||
Certain Loans Acquired In Transfer Not Accounted | 9,620 | 10,764 | |
Construction and Land Development [Member] | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |||
Certain Loans Acquired In Transfer Not Accounted | 6,793 | 6,285 | |
Commercial and Industrial [Member] | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |||
Certain Loans Acquired In Transfer Not Accounted | 2,973 | 1,452 | |
Consumer and Other [Member] | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |||
Certain Loans Acquired In Transfer Not Accounted | $ 1,014 | 1,710 | |
Purchased Credit Impaired Loans [Member] | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |||
Certain Loans Acquired In Transfer Not Accounted | 43,577 | $ 35,619 | |
Less remaining purchase discount | (10,783) | (8,426) | |
Total loans, net of purchase discount | 32,794 | 27,193 | |
Less: Allowance for loan losses | (16) | 0 | |
Carrying amount, net of allowance | 32,778 | 27,193 | |
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member] | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |||
Certain Loans Acquired In Transfer Not Accounted | 23,366 | 18,473 | |
Purchased Credit Impaired Loans [Member] | Consumer Real Estate [Member] | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |||
Certain Loans Acquired In Transfer Not Accounted | 10,764 | 12,111 | |
Purchased Credit Impaired Loans [Member] | Construction and Land Development [Member] | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |||
Certain Loans Acquired In Transfer Not Accounted | 6,285 | 2,553 | |
Purchased Credit Impaired Loans [Member] | Commercial and Industrial [Member] | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |||
Certain Loans Acquired In Transfer Not Accounted | 1,452 | 2,482 | |
Purchased Credit Impaired Loans [Member] | Consumer and Other [Member] | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |||
Certain Loans Acquired In Transfer Not Accounted | $ 1,710 | $ 0 |
Loans and Allowance for Loan115
Loans and Allowance for Loan Losses (FY) (Details 9) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||
Accretable yield, beginning of period | $ 9,287 | $ 8,950 | $ 10,217 |
Additions | 2,581 | 0 | |
Accretion income | (4,217) | (2,588) | |
Reclassification from nonaccretable | 926 | 1,585 | |
Other changes, net | 1,047 | (264) | |
Accretable yield, end of period | $ 1,292 | $ 9,287 | $ 8,950 |
Loans and Allowance for Loan116
Loans and Allowance for Loan Losses (FY) (Details 10) - Capstone Bancshares Inc. [Member] - Purchased Credit Impaired Loans [Member] $ in Thousands | Dec. 31, 2017USD ($) |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |
Contractual principal and interest at acquisition | $ 25,288 |
Nonaccretable difference | 5,725 |
Expected cash flows at acquisition | 19,563 |
Accretable yield | 2,581 |
Basis in PCI loans at acquisition-estimated fair value | $ 16,982 |
Loans and Allowance for Loan117
Loans and Allowance for Loan Losses (FY) (Details 11) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | ||
Balance, beginning of year | $ 12,999 | $ 10,851 |
Disbursements | 14,533 | 855 |
Removal of credit lines | 0 | (1,153) |
Changes in ownership | 0 | 4,830 |
Repayments | (9,202) | (2,384) |
Balance, end of year | $ 18,330 | $ 12,999 |
Loans and Allowance for Loan118
Loans and Allowance for Loan Losses (FY) (Details Textual) | 12 Months Ended | |||
Dec. 31, 2017USD ($)Loan | Dec. 31, 2017USD ($)contract | Jun. 30, 2018USD ($) | Dec. 31, 2016USD ($) | |
Financing Receivable, Modifications [Line Items] | ||||
Nonaccrual | $ 1,764,000 | $ 1,764,000 | $ 1,538,000 | $ 1,415,000 |
Number of Contracts | 0 | 0 | ||
Number of loans modified as troubled debt restructurings with subsequent default | contract | 0 | |||
Allowance for loan losses | $ 16,000 | $ 16,000 | $ 19,000 | |
Pre-approved unused lines of credit with related parties | 5,833,000 | 5,833,000 | ||
Trouble Debt Restructuring [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Troubled debt restructuring | 41,000 | 41,000 | 608,000 | |
Nonaccrual | 0 | 0 | 442,000 | |
Purchased Credit Impaired Loans [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Allowance for loan losses | $ 16,000 | $ 16,000 | $ 0 |
Premises and Equipment (FY) (De
Premises and Equipment (FY) (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Abstract] | |||
Land and land improvements | $ 10,854,000 | $ 8,354,000 | |
Building and leasehold improvements | 28,576,000 | 18,507,000 | |
Furniture, fixtures and equipment | 10,073,000 | 7,043,000 | |
Construction in progress | 1,495,000 | 2,789,000 | |
Total, gross | 50,998,000 | 36,693,000 | |
Accumulated depreciation | (7,998,000) | (6,157,000) | |
Total, net | $ 52,202,992 | $ 43,000,249 | $ 30,535,594 |
Premises and Equipment (FY) 120
Premises and Equipment (FY) (Details 1) $ in Thousands | Dec. 31, 2017USD ($) |
Property, Plant and Equipment [Abstract] | |
2,018 | $ 608 |
2,019 | 500 |
2,020 | 487 |
2,021 | 344 |
2,022 | 124 |
2,023 | $ 40 |
Premises and Equipment (FY) 121
Premises and Equipment (FY) (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | ||
Estimated costs to complete construction in progress | $ 3,040,000 | |
Lease expense under the leases | 721,534 | $ 728,004 |
Depreciation expense | $ 1,841,524 | $ 1,435,090 |
Deposits (FY) (Details)
Deposits (FY) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Deposits [Abstract] | |
2,018 | $ 290,093 |
2,019 | 84,906 |
2,020 | 36,170 |
2,021 | 14,353 |
2,022 | 16,039 |
Thereafter | 120 |
Total | $ 441,681 |
Deposits (FY) (Details Textual)
Deposits (FY) (Details Textual) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Time Deposits Maturity [Line Items] | ||
Time deposits of 250,000 or more | $ 171,529,000 | $ 123,053,000 |
Fair value adjustments to time deposits | 1,092,456 | 303,981 |
Deposit liabilities reclassified as loans receivable | 155,000 | 76,380 |
Related Party [Member] | ||
Time Deposits Maturity [Line Items] | ||
Related party deposit liabilities | $ 16,700,000 | $ 15,100,000 |
Goodwill and Intangible Asse124
Goodwill and Intangible Assets (FY) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Amortized intangible asset: | ||
Core deposit intangible, Gross Carrying Amount | $ 8,589 | $ 2,750 |
Core deposit intangible, Accumulated Amortization | $ 626 | $ 280 |
Goodwill and Intangible Asse125
Goodwill and Intangible Assets (FY) (Details 1) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||
Aggregate amortization expense of core deposit premium intangible | $ 228,866 | $ 61,071 | $ 416,623 | $ 113,648 | $ 346,435 | $ 305,452 |
Goodwill and Intangible Asse126
Goodwill and Intangible Assets (FY) (Details 2) $ in Thousands | Dec. 31, 2017USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,018 | $ 772 |
2,019 | 772 |
2,020 | 717 |
2,021 | 670 |
2,022 | 670 |
Thereafter | 4,362 |
Total | $ 7,963 |
Goodwill and Intangible Asse127
Goodwill and Intangible Assets (FY) (Details Textual) - USD ($) | Nov. 01, 2017 | Aug. 31, 2015 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 38,047,000 | $ 42,873,689 |
Income Taxes (FY) (Details)
Income Taxes (FY) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current tax expense | ||||||
Federal | $ 1,962,000 | $ 2,503,000 | ||||
State | 428,000 | 531,000 | ||||
Deferred tax expense (benefit) related to: | ||||||
Provision for loan losses | (355,000) | (320,000) | ||||
Depreciation | 374,000 | 203,000 | ||||
Fair value adjustments | 1,611,000 | 356,000 | ||||
Nonaccrual interest | (26,000) | (26,000) | ||||
Foreclosed real estate | 55,000 | 117,000 | ||||
Core deposit intangible | (123,000) | (117,000) | ||||
Other | 63,000 | 115,000 | ||||
Change in tax rate | 2,440,000 | 0 | ||||
Total income tax expense | $ 1,294,707 | $ 725,694 | $ 2,235,162 | $ 1,671,548 | $ 6,428,791 | $ 3,362,080 |
Income Taxes (FY) (Details 1)
Income Taxes (FY) (Details 1) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||||||
Federal income tax expense computed at the statutory rate | $ 3,891,000 | $ 3,115,000 | ||||
State income taxes, net of federal tax benefit | 491,000 | 393,000 | ||||
Nondeductible acquisition expenses | 364,000 | 0 | ||||
Change in tax rate | 2,440,000 | 0 | ||||
Other | (757,000) | (146,000) | ||||
Total income tax expense | $ 1,294,707 | $ 725,694 | $ 2,235,162 | $ 1,671,548 | $ 6,428,791 | $ 3,362,080 |
Income Taxes (FY) (Details 2)
Income Taxes (FY) (Details 2) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Allowance for loan losses | $ 1,561 | $ 1,932 |
Fair value adjustments | 4,829 | 3,744 |
Foreclosed real estate | 301 | 539 |
Deferred compensation | 849 | 415 |
State net operating loss carryforward | 0 | 0 |
Other | 849 | 561 |
Total deferred tax assets | 8,389 | 7,191 |
Deferred tax liabilities: | ||
Accumulated depreciation | 1,194 | 1,903 |
Core deposit intangible | 1,945 | 946 |
Other | 223 | 639 |
Total deferred tax liabilities | 3,362 | 3,488 |
Net deferred tax asset | $ 5,027 | $ 3,703 |
Federal Home Loan Bank Advan131
Federal Home Loan Bank Advances and Other Borrowings (FY) (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Long-term Federal Home Loan Bank Advances | $ 0 | |
Long-term advance dated January 10, 2007, Fixed Interest at 4.25, with a put option exercisable in January 2008 and then quarterly thereafter, principal due in January 2017 [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Long-term Federal Home Loan Bank Advances | $ 5,000,000 |
Federal Home Loan Bank Advan132
Federal Home Loan Bank Advances and Other Borrowings (FY) (Details 1) $ in Thousands | Dec. 31, 2017USD ($) |
Debt Disclosure [Abstract] | |
2,018 | $ 33,600 |
2,022 | $ 10,000 |
Federal Home Loan Bank Advan133
Federal Home Loan Bank Advances and Other Borrowings (FY) (Details Textual) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Oct. 31, 2017 | Dec. 31, 2016 | Aug. 28, 2015 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||||
Long-term line of credit | $ 10,000,000 | |||
Carrying value of securities pledged to Federal Home Loan Bank | $ 16,252,434 | $ 14,844,441 | ||
Interest rate at period end (as a percent) | 4.25% | |||
Federal Home Loan Bank borrowings, fair value | $ 0 | $ 5,765 | ||
Federal funds purchased | 33,600,000 | |||
Fiscal quarter 2019 [Member] | ||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||||
Amortization | 262,500 | |||
Fiscal quarter 2020 [Member] | ||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||||
Amortization | 287,500 | |||
Fiscal Quarter 2021 [Member] | ||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||||
Amortization | 312,500 | |||
Fiscal Quarter 2022 [Member] | ||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||||
Amortization | $ 337,500 | |||
Long-term advance dated January 10, 2007, Fixed Interest at 4.25, with a put option exercisable in January 2008 and then quarterly thereafter, principal due in January 2017 [Member] | ||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||||
Federal Home Loan Bank, advances, interest rate (as a percent) | 4.25% | 4.25% | ||
Federal Home Loan Bank Advances [Member] | ||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 36,224,294 | |||
Revolving Credit Facility [Member] | ||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 15,000,000 | $ 8,000,000 | ||
Covenant compliance, ratio of non-performing assets as a percentage total assets, not to be greater than | 3.25% | |||
Covenant compliance, Texas ratio, not to be greater than (as a percent) | 35.00% | |||
Covenant compliance, liquidity ratio, not to be less than (as a percent) | 9.00% | |||
Covenant compliance, liquidity ratio in consecutive quarters, not to be less than (as a percent) | 10.00% | |||
Covenant terms, return on average assets, next nine months (as a percent) | 0.45% | |||
Covenant terms, return on average assets, thereafter (as a percent) | 0.50% | |||
Covenant terms, debt service coverage ratio | 0.0125 | |||
Covenant compliance, interest coverage ratio, not to be less than | 2.50 | |||
Revolving Credit Facility [Member] | Prime Rate [Member] | ||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||||
Initial line of credit period | 90 days | |||
Variable rate, floor (as a percent) | 3.50% | |||
Basis spread on variable rate (as a percent) | (0.25%) | |||
Subsidiaries [Member] | ||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||||
Total risk-based capital ratio required to well-capitalized | 10.50% | |||
Tier 1 risk-based capital ratio required to be well capitalized | 9.50% | |||
Tier 1 leverage ratio required to be well capitalized | 8.00% |
Employee Benefit Plans (FY) (De
Employee Benefit Plans (FY) (Details Textual) - USD ($) | Aug. 04, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Deferred compensation arrangements, overall, description | After one year of service the Company matches 100 percent of employee contributions up to 3 percent of compensation and 50 percent of employee contributions on the next 2 percent of compensation. | ||
Share-based compensation expense | $ 97,966 | $ 132,635 | |
Options vested in period, fair value | 313,977 | 95,658 | |
Deferred tax expense from stock options exercised | 1,331,689 | 252,931 | |
Options, exercises in period, intrinsic value | 5,468,780 | $ 660,476 | |
Options, outstanding, intrinsic value | 3,261,940 | ||
Options, exercisable, intrinsic value | 3,105,964 | ||
Proceeds from stock options exercised | $ 4,885,646 | ||
Number of shares granted | 0 | 0 | |
Weighted average grant-date fair value, granted (in dollars per share) | $ 0 | ||
Director [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Direct stock grant expense | $ 31,791 | $ 0 | |
Deferred Salary Reduction Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, cost recognized | 427,975 | 403,309 | |
Stock Options [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unrecognized compensation costs | $ 258,000 | ||
Unrecognized compensation costs, period for recognition | 11 months 16 days | ||
Stock Appreciation Rights (SARs) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Share-based compensation expense | $ 21,829 | 0 | |
Restricted Stock [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of shares granted | 27,500 | ||
Legacy Cornerstone Bancshares, Inc. Long-Term Incentive Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Exercise price, not less than (as a percent) | 100.00% | ||
Legacy Smart Financial Inc 2010 Incentive Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Exercise price, not less than (as a percent) | 100.00% | ||
Number of shares authorized | 525,000 | ||
Stock Incentive Plan Two Thousand Fifteen [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Exercise price, not less than (as a percent) | 110.00% | ||
Number Outstanding (in shares) | 2,000,000 | ||
Term of options, no more than | 10 years | ||
Voting power held by participant (as a percent) | 10.00% | ||
Term of option to participants with more than ten percent voting power | 5 years | ||
Percentage Of incentive stock options vesting on second anniversary | 30.00% | ||
Percentage Of incentive stock options vesting on third anniversary | 30.00% | ||
Percentage Of incentive stock options vesting on fourth anniversary | 40.00% | ||
Percentage Of nonqualified stock options vesting on first anniversary | 50.00% | ||
Percentage Of nonqualified stock options vesting on second anniversary | 50.00% | ||
Stock Incentive Plan Two Thousand Fifteen [Member] | Restricted Stock [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Term of option to participants with more than ten percent voting power | 5 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 24.58 | ||
Share-based compensation expense | $ 56,330 | $ 0 | |
Number of shares granted | 27,500 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 619,620 | ||
401 (k) Matching Range One [Member] | Deferred Salary Reduction Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Request service period | 1 year | ||
Employer matching contribution, percent of match | 100.00% | ||
Employer matching contribution, percent of employees gross pay | 3.00% | ||
401 (k) Matching Range Two [Member] | Deferred Salary Reduction Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer matching contribution, percent of match | 50.00% | ||
Employer matching contribution, percent of employees gross pay | 2.00% |
Employee Benefit Plans (FY) 135
Employee Benefit Plans (FY) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Number | ||
Shares, Capstone options assumed in business combination | 130,469 | |
Weighted Average Exercisable Price | ||
Weighted Average Exercisable Price, Capstone options assumed in business combination (in dollars per share) | $ 11.76 | |
Officer and Employee Plans [Member] | ||
Number | ||
Shares, Outstanding | 717,524 | 817,414 |
Shares, Granted | 0 | 0 |
Shares, Exercised | (506,923) | (89,556) |
Shares, Forfeited | (24,496) | (10,334) |
Shares, Outstanding | 316,574 | 717,524 |
Weighted Average Exercisable Price | ||
Weighted Average Exercisable Price, Outstanding (in dollars per share) | $ 10.57 | $ 10.62 |
Weighted Average Exercisable Price Granted (in dollars per share) | 0 | 0 |
Weighted Average Exercisable Price Exercised (in dollars per share) | 9.64 | 8.98 |
Weighted Average Exercisable Price Forfeited (in dollars per share) | 19.90 | 28.49 |
Weighted Average Exercise Price, Outstanding (in dollars per share) | $ 11.82 | $ 10.57 |
Employee Benefit Plans (FY) 136
Employee Benefit Plans (FY) (Details 1) - Officer and Employee Plans [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise Prices (in dollars per share) | $ 11.82 | $ 10.57 | $ 10.62 |
Number Outstanding (in shares) | 316,574 | 717,524 | 817,414 |
Options Outstanding, Weighted Average Remaining Life | 3 years 8 months 5 days | ||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 11.82 | ||
Options, Number Exercisable (in shares) | 293,119 | ||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 11.56 | ||
6.60 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise Prices (in dollars per share) | $ 6.60 | ||
Number Outstanding (in shares) | 37,500 | ||
Options Outstanding, Weighted Average Remaining Life | 4 years 2 months 12 days | ||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 6.60 | ||
Options, Number Exercisable (in shares) | 37,500 | ||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 6.60 | ||
6.80 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise Prices (in dollars per share) | $ 6.80 | ||
Number Outstanding (in shares) | 16,875 | ||
Options Outstanding, Weighted Average Remaining Life | 3 years 2 months 1 day | ||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 6.80 | ||
Options, Number Exercisable (in shares) | 16,875 | ||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 6.80 | ||
9.48 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise Prices (in dollars per share) | $ 9.48 | ||
Number Outstanding (in shares) | 26,875 | ||
Options Outstanding, Weighted Average Remaining Life | 5 years 2 months 12 days | ||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 9.48 | ||
Options, Number Exercisable (in shares) | 26,875 | ||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 9.48 | ||
9.60 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise Prices (in dollars per share) | $ 9.60 | ||
Number Outstanding (in shares) | 35,625 | ||
Options Outstanding, Weighted Average Remaining Life | 6 years 2 months 1 day | ||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 9.60 | ||
Options, Number Exercisable (in shares) | 35,625 | ||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 9.60 | ||
11.67 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise Prices (in dollars per share) | $ 11.67 | ||
Number Outstanding (in shares) | 2,000 | ||
Options Outstanding, Weighted Average Remaining Life | 3 years 29 days | ||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 11.67 | ||
Options, Number Exercisable (in shares) | 2,000 | ||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 11.67 | ||
11.76 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise Prices (in dollars per share) | $ 11.76 | ||
Number Outstanding (in shares) | 130,469 | ||
Options Outstanding, Weighted Average Remaining Life | 1 year 11 months 5 days | ||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 11.76 | ||
Options, Number Exercisable (in shares) | 130,469 | ||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 11.76 | ||
14.40 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise Prices (in dollars per share) | $ 14.40 | ||
Number Outstanding (in shares) | 12,805 | ||
Options Outstanding, Weighted Average Remaining Life | 1 year 1 month 28 days | ||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 14.40 | ||
Options, Number Exercisable (in shares) | 12,805 | ||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 14.40 | ||
15.05 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise Prices (in dollars per share) | $ 15.05 | ||
Number Outstanding (in shares) | 41,259 | ||
Options Outstanding, Weighted Average Remaining Life | 7 years 9 months | ||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 15.05 | ||
Options, Number Exercisable (in shares) | 17,804 | ||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 15.05 | ||
31.96 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise Prices (in dollars per share) | $ 31.96 | ||
Number Outstanding (in shares) | 13,166 | ||
Options Outstanding, Weighted Average Remaining Life | 1 month 28 days | ||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 31.96 | ||
Options, Number Exercisable (in shares) | 13,166 | ||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 31.96 |
Employee Benefit Plans (FY) 137
Employee Benefit Plans (FY) (Details 2) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Number | ||
Number of Shares, Nonvested, beginning balance | 47,970 | |
Number of Shares, Granted | 0 | 0 |
Number of Shares, Vested | (14,469) | |
Number of Shares, Forfeited/expired | (10,046) | |
Number of Shares, Nonvested, ending balance | 23,455 | 47,970 |
Weighted Average Grant-Date Fair Value | ||
Weighted Average Grant-Date Fair Value, Nonvested, beginning balance (in dollars per share) | $ 12.31 | |
Weighted Average Grant-Date Fair Value, Granted (in dollars per share) | 0 | |
Weighted Average Grant-Date Fair Value, Vested (in dollars per share) | 12.31 | |
Weighted Average Grant-Date Fair Value, Forfeited/expired (in dollars per share) | 12.31 | |
Weighted Average Grant-Date Fair Value, Nonvested, ending balance (in dollars per share) | $ 12.31 | $ 12.31 |
Employee Benefit Plans (FY) 138
Employee Benefit Plans (FY) (Details 3) - Restricted Stock [Member] | 12 Months Ended |
Dec. 31, 2017shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested, beginnning of period (in shares) | 0 |
Granted (in shares) | 27,500 |
Vested (in shares) | 0 |
Forfeited/expired (in shares) | 0 |
Nonvested, end of period (in shares) | 27,500 |
Securities Sold Under Agreem139
Securities Sold Under Agreements to Repurchase (FY) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities sold under agreements to repurchase | $ 24,054,730 | $ 26,621,984 |
Minimum [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities sold under agreement to repurchase, maturity of agreement | 1 day | |
Maximum [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Securities sold under agreement to repurchase, maturity of agreement | 4 days |
Commitments and Contingencie140
Commitments and Contingencies (FY) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments to extend credit | $ 299.6 | $ 292.8 |
Standby letters of credit, issued by the Company | $ 3.7 | $ 5.5 |
Regulatory Matters (FY) (Detail
Regulatory Matters (FY) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
SmartFinancial, Inc. [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Capital (to Risk-Weighted Assets), Actual Amount | $ 163,683 | $ 105,756 |
Tier 1 Capital (to Risk-Weighted Assets), Actual Amount | 157,823 | 100,651 |
Common Equity Tier 1 Capital (to Risk-Weighted Assets), Actual Amount | 157,823 | 88,651 |
Tier 1 Capital (to Average Assets), Actual Amount | $ 157,823 | $ 100,651 |
Total Capital (to Risk-Weighted Assets), Actual Ratio (as a percent) | 10.98% | 11.99% |
Tier 1 Capital (to Risk-Weighted Assets), Actual Ratio (as a percent) | 10.59% | 11.42% |
Common Equity Tier 1 Capital (to Risk-Weighted Assets), Actual Ratio (as a percent) | 10.59% | 10.05% |
Tier 1 Capital (to Average Assets), Actual Ratio (as a percent) | 10.78% | 9.81% |
Total Capital (to Risk-Weighted Assets), Minimum for capital adequacy purposes Amount | $ 119,257 | $ 70,553 |
Tier 1 Capital (to Risk-Weighted Assets), Minimum for capital adequacy purposes Amount | 89,442 | 52,915 |
Common Equity Tier 1 Capital (to Risk-Weighted Assets), Minimum for capital adequacy purposes Amount | 67,082 | 39,686 |
Tier 1 Capital (to Average Assets), Minimum for capital adequacy purposes Amount | $ 58,562 | $ 41,052 |
Total Capital (to Risk-Weighted Assets), Minimum for capital adequacy purposes Ratio (as a percent) | 8.00% | 8.00% |
Tier 1 Capital (to Risk-Weighted Assets), Minimum for capital adequacy purposes Ratio (as a percent) | 6.00% | 6.00% |
Common Equity Tier 1 Capital (to Risk-Weighted Assets), Minimum for capital adequacy purposes Ratio (as a percent) | 4.50% | 4.50% |
Tier 1 Capital (to Average Assets), Minimum for capital adequacy purposes Ratio (as a percent) | 4.00% | 4.00% |
Smart Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Capital (to Risk-Weighted Assets), Actual Amount | $ 168,148 | $ 104,705 |
Tier 1 Capital (to Risk-Weighted Assets), Actual Amount | 162,288 | 99,600 |
Common Equity Tier 1 Capital (to Risk-Weighted Assets), Actual Amount | 162,288 | 99,600 |
Tier 1 Capital (to Average Assets), Actual Amount | $ 162,288 | $ 99,600 |
Total Capital (to Risk-Weighted Assets), Actual Ratio (as a percent) | 11.29% | 11.88% |
Tier 1 Capital (to Risk-Weighted Assets), Actual Ratio (as a percent) | 10.90% | 11.30% |
Common Equity Tier 1 Capital (to Risk-Weighted Assets), Actual Ratio (as a percent) | 10.90% | 11.30% |
Tier 1 Capital (to Average Assets), Actual Ratio (as a percent) | 11.26% | 9.71% |
Total Capital (to Risk-Weighted Assets), Minimum for capital adequacy purposes Amount | $ 119,111 | $ 70,535 |
Tier 1 Capital (to Risk-Weighted Assets), Minimum for capital adequacy purposes Amount | 89,333 | 52,901 |
Common Equity Tier 1 Capital (to Risk-Weighted Assets), Minimum for capital adequacy purposes Amount | 67,000 | 39,676 |
Tier 1 Capital (to Average Assets), Minimum for capital adequacy purposes Amount | $ 57,656 | $ 41,041 |
Total Capital (to Risk-Weighted Assets), Minimum for capital adequacy purposes Ratio (as a percent) | 8.00% | 8.00% |
Tier 1 Capital (to Risk-Weighted Assets), Minimum for capital adequacy purposes Ratio (as a percent) | 6.00% | 6.00% |
Common Equity Tier 1 Capital (to Risk-Weighted Assets), Minimum for capital adequacy purposes Ratio (as a percent) | 4.50% | 4.50% |
Tier 1 Capital (to Average Assets), Minimum for capital adequacy purposes Ratio (as a percent) | 4.00% | 4.00% |
Total Capital (to Risk-Weighted Assets), Minimum to be well capitalized under prompt corrective action provisions Amount | $ 148,889 | $ 88,169 |
Tier 1 Capital (to Risk-Weighted Assets), Minimum to be well capitalized under prompt corrective action provisions Amount | 119,111 | 70,535 |
Common Equity Tier 1 Capital (to Risk-Weighted Assets), Minimum to be well capitalized under prompt corrective action provisions Amount | 96,778 | 57,310 |
Tier 1 Capital (to Average Assets), Minimum to be well capitalized under prompt corrective action provisions Amount | $ 72,070 | $ 51,301 |
Total Capital (to Risk-Weighted Assets), Minimum to be well capitalized under prompt corrective action provisions Ratio (as a percent) | 10.00% | 10.00% |
Tier 1 Capital (to Risk-Weighted Assets), Minimum to be well capitalized under prompt corrective action provisions Ratio (as a percent) | 8.00% | 8.00% |
Common Equity Tier 1 Capital (to Risk-Weighted Assets), Minimum to be well capitalized under prompt corrective action provisions Ratio (as a percent) | 6.50% | 6.50% |
Tier 1 Capital (to Average Assets), Minimum to be well capitalized under prompt corrective action provisions Ratio (as a percent) | 5.00% | 5.00% |
Regulatory Matters (FY) (Det142
Regulatory Matters (FY) (Details Textual) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Banking and Thrift [Abstract] | |
Dividends | $ 0 |
Dividends payable | $ 11,500,000 |
Concentrations of Credit Ris143
Concentrations of Credit Risk (FY) (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Concentration Risk [Line Items] | ||
Credit extending terms to borrowers | The Bank, as a matter of policy, does not generally extend credit to any single borrower or group of related borrowers in excess of 25% of statutory capital, or approximately $42,325,000. | |
Commercial Real Estate [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 56.00% | 61.00% |
Loan Portfolio Secured by Real Estate [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 81.00% |
Fair Value of Assets and Lia144
Fair Value of Assets and Liabilities (FY) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale | $ 151,944 | $ 129,422 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale | 151,944 | 129,422 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale | 0 | 0 |
U.S. Government-sponsored enterprises (GSEs) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale | 25,776 | 17,723 |
U.S. Government-sponsored enterprises (GSEs) [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale | 0 | 0 |
U.S. Government-sponsored enterprises (GSEs) [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale | 25,776 | 17,723 |
U.S. Government-sponsored enterprises (GSEs) [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale | 0 | 0 |
Muncipal Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale | 9,003 | 8,019 |
Muncipal Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale | 0 | 0 |
Muncipal Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale | 9,003 | 8,019 |
Muncipal Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale | 0 | 0 |
Other Debt Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale | 950 | |
Other Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale | 0 | |
Other Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale | 950 | |
Other Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale | 0 | |
Mortgage-backed securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale | 116,215 | 103,680 |
Mortgage-backed securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale | 0 | 0 |
Mortgage-backed securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale | 116,215 | 103,680 |
Mortgage-backed securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale | $ 0 | $ 0 |
Fair Value of Assets and Lia145
Fair Value of Assets and Liabilities (FY) (Details 1) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Impaired loans | $ 407 | $ 769 | $ 239 |
Foreclosed assets | 3,524 | 3,254 | 2,386 |
Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Impaired loans | 0 | 0 | 0 |
Foreclosed assets | 0 | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Impaired loans | 0 | 0 | 0 |
Foreclosed assets | 0 | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Impaired loans | 407 | 769 | 239 |
Foreclosed assets | $ 3,524 | $ 3,254 | $ 2,386 |
Fair Value of Assets and Lia146
Fair Value of Assets and Liabilities (FY) (Details 2) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2018 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Impaired loans | $ 769,000 | $ 239,000 | $ 407,000 |
Foreclosed assets | $ 3,254,392 | $ 2,386,239 | $ 3,524,239 |
Impaired Loans [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Valuation Technique | Third Party Appraisal | Cash Flow | |
Significant Other Unobservable Input | Appraisal Discounts | Discounted Cash Flow / Appraisal Discounts | |
Weighted Average of Input (as a percent) | 35.50% | 2.40% | |
Foreclosed assets [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Valuation Technique | Third Party Appraisal | Appraisal | |
Significant Other Unobservable Input | Appraisal Discounts | Appraisal Discounts | |
Weighted Average of Input (as a percent) | 17.80% | 12.20% |
Fair Value of Assets and Lia147
Fair Value of Assets and Liabilities (FY) (Details 3) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets: | |||
Securities available-for-sale | $ 151,944,000 | $ 129,422,000 | |
Carrying Value [Member] | |||
Assets: | |||
Cash and cash equivalents | $ 170,235,000 | 113,027,000 | 68,748,000 |
Securities available-for-sale | 129,422,000 | ||
Restricted investments | 6,431,000 | 5,628,000 | |
Loans, net | 1,568,361,000 | 1,317,398,000 | 808,271,000 |
Liabilities: | |||
Noninterest-bearing demand deposits | 220,520,000 | 153,483,000 | |
Interest-bearing demand deposits | 231,644,000 | 162,702,000 | |
Savings deposits | 632,518,000 | 543,645,000 | 274,605,000 |
Time deposits | 442,774,000 | 316,275,000 | |
Securities sold under agreements to repurchase | 18,635,000 | 24,055,000 | 26,622,000 |
Federal Home Loan Bank advances and other borrowings | 43,600,000 | 18,505,000 | |
Estimated Fair Value [Member] | |||
Assets: | |||
Cash and cash equivalents | 170,235,000 | 113,027,000 | 68,748,000 |
Securities available-for-sale | 151,944,000 | 129,422,000 | |
Loans, net | 1,569,916,000 | 1,292,303,000 | 803,057,000 |
Liabilities: | |||
Noninterest-bearing demand deposits | 220,520,000 | 153,483,000 | |
Interest-bearing demand deposits | 231,644,000 | 162,702,000 | |
Savings deposits | 632,518,000 | 543,645,000 | 274,605,000 |
Time deposits | 443,547,000 | 316,734,000 | |
Securities sold under agreements to repurchase | $ 18,635,000 | 24,055,000 | 26,622,000 |
Federal Home Loan Bank advances and other borrowings | $ 43,600,000 | $ 18,505,000 |
Small Business Lending Fund 148
Small Business Lending Fund (FY) (Details) - USD ($) | Mar. 06, 2017 | Jan. 30, 2017 | Feb. 04, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2011 |
Class of Stock [Line Items] | |||||||||||
Preferred stock, shares issued | 0 | 0 | 0 | 12,000 | |||||||
Preferred stock, dividend rate (as a percent) | 9.00% | 9.00% | 1.00% | ||||||||
Preferred stock dividends | $ 0 | $ 0 | $ 0 | $ 195,000 | $ 195,000 | $ 1,022,000 | $ 120,000 | ||||
Common stock, par value (in dollars per share) | $ 1 | $ 1 | $ 1 | $ 1 | |||||||
Proceeds from issuance of common stock | $ 1,079,979 | 37,591,479 | $ 37,852,113 | $ 803,957 | |||||||
Payments for redemption of preferred stock | $ 12,000,000 | ||||||||||
Payment of dividends on preferred stock | $ 195,000 | $ 0 | $ 195,000 | $ 195,000 | $ 752,000 | ||||||
SBLF Program [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred stock, shares issued | 12,000 | 12,000 | |||||||||
Share price (in dollars per share) | $ 1,000 | $ 1,000 | |||||||||
Common Stock [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Issuance of common stock in public offering (in shares) | 2,010,084 | ||||||||||
Common stock, par value (in dollars per share) | $ 1 | ||||||||||
Proceeds from issuance of common stock | $ 33,200,000 |
Concentration in Deposits (FY)
Concentration in Deposits (FY) (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Concentration Risk [Line Items] | |||
Deposits | $ 1,716,657,567 | $ 1,438,582,719 | $ 907,065,171 |
Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Deposits | $ 116,121,000 | $ 60,153,000 |
Earnings per Share (FY) (Detail
Earnings per Share (FY) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | ||||||
Anti-dilutive securities excluded from computation of earnings per share (in shares) | 0 | 13,916 | 0 | 13,916 | 13,166 | 17,649 |
Basic earnings per share computation: | ||||||
Net income available to common stockholders | $ 3,931,556 | $ 1,648,286 | $ 7,346,326 | $ 3,097,138 | $ 4,820,064 | $ 4,776,808 |
Average common shares outstanding - basic | 12,201,185 | 8,216,567 | 11,708,746 | 7,872,609 | 8,639,212 | 5,838,574 |
Basic earnings per share (in dollars per share) | $ 0.32 | $ 0.20 | $ 0.63 | $ 0.39 | $ 0.56 | $ 0.82 |
Diluted earnings per share computation: | ||||||
Net income available to common stockholders | $ 4,820,000 | $ 4,777,000 | ||||
Average common shares outstanding - basic | 8,639,212 | 5,838,574 | ||||
Incremental shares from assumed conversions: | ||||||
Stock options | 119,313 | 108,971 | 113,751 | 104,673 | 154,315 | 280,369 |
Average common shares outstanding - diluted | 8,793,527 | 6,118,943 | ||||
Diluted earnings per share (in dollars per share) | $ 0.32 | $ 0.20 | $ 0.62 | $ 0.39 | $ 0.55 | $ 0.78 |
Condensed Parent Information, B
Condensed Parent Information, Balance Sheets (FY) (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | |||||
Cash | $ 170,235,110 | $ 113,026,884 | $ 82,835,426 | $ 68,748,308 | $ 79,964,633 |
Other assets | 12,665,515 | 13,232,247 | 9,508,899 | ||
Total assets | 2,062,231,972 | 1,720,770,682 | 1,062,456,285 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Total liabilities | 1,814,745,395 | 1,514,918,842 | 957,216,145 | ||
Stockholders' equity | 247,486,577 | 205,851,840 | $ 134,734,011 | 105,240,140 | 100,176,859 |
Total liabilities and shareholders' equity | $ 2,062,231,972 | 1,720,770,682 | 1,062,456,285 | ||
Parent [Member] | |||||
ASSETS | |||||
Cash | 3,936,000 | 2,068,000 | $ 503,000 | ||
Investment in subsidiaries | 168,104,000 | 100,023,000 | |||
Other assets | 42,766,000 | 4,392,000 | |||
Total assets | 214,806,000 | 106,483,000 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Other liabilities | (1,046,000) | 1,243,000 | |||
Other borrowings | 10,000,000 | 0 | |||
Total liabilities | 8,954,000 | 1,243,000 | |||
Stockholders' equity | 205,852,000 | 105,240,000 | |||
Total liabilities and shareholders' equity | $ 214,806,000 | $ 106,483,000 |
Condensed Parent Information, S
Condensed Parent Information, Statements of Income (FY) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
INCOME | |||||||
Interest income | $ 22,993,384 | $ 11,517,489 | $ 42,371,438 | $ 22,466,812 | $ 52,022,396 | $ 42,564,391 | |
EXPENSES | |||||||
Interest expense | 3,455,362 | 1,268,821 | 6,022,096 | 2,397,784 | 5,693,353 | 4,299,682 | |
Income tax benefit | (1,294,707) | (725,694) | (2,235,162) | (1,671,548) | (6,428,791) | (3,362,080) | |
Net income | 3,931,556 | 1,648,286 | 7,346,326 | 3,292,138 | 5,015,064 | 5,798,808 | |
Preferred stock dividend requirements | 0 | 0 | 0 | 195,000 | 195,000 | 1,022,000 | $ 120,000 |
Net income available to common shareholders | $ 3,931,556 | $ 1,648,286 | $ 7,346,326 | $ 3,097,138 | 4,820,064 | 4,776,808 | |
Parent [Member] | |||||||
INCOME | |||||||
Dividends | 0 | 3,000,000 | |||||
Interest income | 0 | 0 | |||||
Interest and dividend income | 0 | 3,000,000 | |||||
EXPENSES | |||||||
Interest expense | 69,000 | 17,000 | |||||
Other operating expenses | 2,657,000 | 1,146,000 | |||||
Loss before equity in undistributed earnings of subsidiaries and income tax benefit | (2,726,000) | 1,837,000 | |||||
Equity in undistributed earnings of subsidiaries | 7,134,000 | 3,520,000 | |||||
Income tax benefit | 607,000 | 442,000 | |||||
Net income | 5,015,000 | 5,799,000 | |||||
Preferred stock dividend requirements | 195,000 | 1,022,000 | |||||
Net income available to common shareholders | $ 4,820,000 | $ 4,777,000 |
Condensed Parent Information153
Condensed Parent Information, Statements of Cash Flows (FY) (Details) - USD ($) | Mar. 06, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income | $ 3,931,556 | $ 1,648,286 | $ 7,346,326 | $ 3,292,138 | $ 5,015,064 | $ 5,798,808 | |
Adjustments to reconcile net income to net cash used in operating activities: | |||||||
Other | 1,869,609 | 1,457,176 | (102,663) | 3,918,803 | |||
Net cash provided by operating activities | 12,197,707 | 5,641,998 | 6,642,301 | 11,590,741 | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Redemption of preferred stock | 0 | (12,000,000) | (12,000,000) | 0 | |||
Proceeds from issuance of common stock | 1,079,979 | 37,591,479 | 37,852,113 | 803,957 | |||
Payment of dividends on preferred stock | $ (195,000) | 0 | (195,000) | (195,000) | (752,000) | ||
Net cash provided by financing activities | 95,510,265 | 50,897,399 | 93,772,547 | 31,506,275 | |||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Net cash used in investing activities | (50,499,746) | (42,452,279) | (56,136,272) | (54,313,341) | |||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 57,208,226 | 14,087,118 | 44,278,576 | (11,216,325) | |||
CASH AND CASH EQUIVALENTS, beginning of year | 113,026,884 | 68,748,308 | 68,748,308 | 79,964,633 | |||
CASH AND CASH EQUIVALENTS, end of year | $ 170,235,110 | $ 82,835,426 | 170,235,110 | 82,835,426 | 113,026,884 | 68,748,308 | |
Parent [Member] | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income | 5,015,000 | 5,799,000 | |||||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||
Equity in undistributed income of subsidiary | (7,134,000) | (3,520,000) | |||||
Other | (2,449,000) | 1,234,000 | |||||
Net cash provided by operating activities | (4,568,000) | 3,513,000 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Proceeds from issuance of note payable | 10,000,000 | 0 | |||||
Repayment of note payable | 0 | (2,000,000) | |||||
Redemption of preferred stock | (12,000,000) | 0 | |||||
Proceeds from issuance of common stock | 37,853,000 | 804,000 | |||||
Payment of dividends on preferred stock | (195,000) | (752,000) | |||||
Net cash provided by financing activities | 35,658,000 | (1,948,000) | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Net cash for purchase of Capstone Bancshares, Inc. | (14,222,000) | 0 | |||||
Capital injection in subsidiary | (15,000,000) | ||||||
Net cash used in investing activities | (29,222,000) | 0 | |||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 1,868,000 | 1,565,000 | |||||
CASH AND CASH EQUIVALENTS, beginning of year | $ 3,936,000 | $ 2,068,000 | 2,068,000 | 503,000 | |||
CASH AND CASH EQUIVALENTS, end of year | $ 3,936,000 | $ 2,068,000 |