Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 08, 2021 | Jun. 30, 2020 | |
Cover page [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 001-37661 | ||
Entity Registrant Name | SMARTFINANCIAL INC. | ||
Entity Incorporation, State or Country Code | TN | ||
Entity Tax Identification Number | 62-1173944 | ||
Entity Address, Address Line One | 5401 Kingston Pike, Suite 600 | ||
Entity Address, City or Town | Knoxville | ||
Entity Address, State or Province | TN | ||
Entity Address, Postal Zip Code | 37919 | ||
City Area Code | 865 | ||
Local Phone Number | 437-5700 | ||
Title of 12(b) Security | Common Stock, par value $1.00 per share | ||
Trading Symbol | SMBK | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 224.1 | ||
Entity Common Stock, Shares Outstanding | 15,113,045 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001038773 | ||
Current Fiscal Year End Date | --12-31 | ||
Icfr Auditor Attestation Flag | true |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS: | ||
Cash and due from banks | $ 50,460 | $ 33,205 |
Interest-bearing deposits with banks | 364,846 | 127,329 |
Federal funds sold | 66,413 | 23,437 |
Total cash and cash equivalents | 481,719 | 183,971 |
Securities available-for-sale, at fair value | 215,634 | 178,348 |
Other investments | 14,794 | 12,913 |
Loans held for sale | 11,721 | 5,856 |
Loans | 2,382,243 | 1,897,392 |
Less: Allowance for loan losses | (18,346) | (10,243) |
Loans, net | 2,363,897 | 1,887,149 |
Premises and equipment, net | 72,682 | 59,433 |
Other real estate owned | 4,619 | 1,757 |
Goodwill and core deposit intangible, net | 86,471 | 77,193 |
Bank owned life insurance | 31,215 | 24,949 |
Other assets | 22,197 | 17,554 |
Total assets | 3,304,949 | 2,449,123 |
Deposits: | ||
Noninterest-bearing demand | 685,957 | 364,155 |
Interest-bearing demand | 649,129 | 380,234 |
Money market and savings | 919,631 | 623,284 |
Time deposits | 550,498 | 679,541 |
Total deposits | 2,805,215 | 2,047,214 |
Borrowings | 81,199 | 31,623 |
Subordinated debt | 39,346 | 39,261 |
Other liabilities | 22,021 | 18,278 |
Total liabilities | 2,947,781 | 2,136,376 |
Stockholders' equity: | ||
Preferred stock, $1 par value; 2,000,000 shares authorized; No shares issued and outstanding | 0 | 0 |
Common stock, $1 par value; 40,000,000 shares authorized; 15,107,214 and 14,008,233 shares issued and outstanding, respectively | 15,107 | 14,008 |
Additional paid-in capital | 252,693 | 232,732 |
Retained earnings | 87,185 | 65,839 |
Accumulated other comprehensive income (loss) | 2,183 | 168 |
Total stockholders' equity | 357,168 | 312,747 |
Total liabilities and stockholders' equity | $ 3,304,949 | $ 2,449,123 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 15,107,214 | 14,008,233 |
Common stock, shares outstanding (in shares) | 15,107,214 | 14,008,233 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Interest Income: | ||
Loans, including fees | $ 112,312 | $ 101,002 |
Securities available-for-sale: | ||
Taxable | 2,423 | 3,289 |
Tax-exempt | 1,369 | 1,518 |
Federal funds sold and other earning assets | 1,509 | 2,646 |
Total interest income | 117,613 | 108,455 |
Interest Expense: | ||
Deposits | 13,597 | 21,915 |
Borrowings | 816 | 319 |
Subordinated debt | 2,334 | 2,341 |
Total interest expense | 16,747 | 24,575 |
Net interest income | 100,866 | 83,880 |
Provision for loan losses | 8,683 | 2,599 |
Net interest income after provision for loan losses | 92,183 | 81,281 |
Noninterest Income: | ||
Service charges on deposit accounts | 3,403 | 2,902 |
Gain on sale of securities | 6 | 34 |
Mortgage banking | 3,875 | 1,566 |
Investment services | 1,566 | 946 |
Insurance commissions | 1,850 | |
Interchange and debit card transaction fees, net | 2,413 | 628 |
Merger termination fee | 0 | 6,400 |
Other | 2,313 | 2,839 |
Total noninterest income | 15,426 | 15,315 |
Noninterest Expense: | ||
Salaries and employee benefits | 42,911 | 36,635 |
Occupancy and equipment | 8,348 | 6,716 |
FDIC insurance | 1,190 | 140 |
Other real estate and loan related expenses | 2,050 | 1,320 |
Advertising and marketing | 834 | 983 |
Data processing | 2,281 | 1,995 |
Professional services | 2,958 | 2,375 |
Aggregate amortization expense of core deposit premium intangible | 1,740 | 1,368 |
Software as services contracts | 2,195 | 2,195 |
Merger related and restructuring expenses | 4,565 | 3,219 |
Other | 7,647 | 6,205 |
Total noninterest expenses | 76,719 | 63,151 |
Income before income tax expense | 30,890 | 33,445 |
Income tax expense | 6,558 | 6,897 |
Net Income (Loss) Available to Common Stockholders, Basic, Total | $ 24,332 | $ 26,548 |
Earnings per common share: | ||
Basic (in dollars per share) | $ 1.63 | $ 1.90 |
Diluted (in dollars per share) | $ 1.62 | $ 1.89 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 14,955,423 | 13,953,497 |
Diluted (in shares) | 15,019,175 | 14,046,366 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 24,332 | $ 26,548 |
Other comprehensive income: | ||
Unrealized holding gains (losses) and hedge effects on securities available-for-sale arising during the period | 3,495 | 3,092 |
Tax effect | (914) | (802) |
Reclassification adjustment for realized (gains) losses included in net income | (6) | (34) |
Tax effect | 2 | 9 |
Unrealized gains (losses) on securities available-for-sale arising during the period, net of tax | 2,577 | 2,265 |
Unrealized gains (losses) on fair value municipal security hedges | (761) | 905 |
Tax effect | 199 | (237) |
Unrealized gains (losses) on fair value municipal security hedge instruments arising during the period, net of tax | (562) | 668 |
Total other comprehensive income | 2,015 | 2,933 |
Comprehensive income | $ 26,347 | $ 29,481 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Parent [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
BALANCE (in shares) | 13,933,504 | |||||
BALANCE at Dec. 31, 2018 | $ 13,933 | $ 231,852 | $ 39,991 | $ (2,765) | $ 283,011 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 26,548 | 26,548 | 26,548 | |||
Other comprehensive gain (loss) | 2,933 | 2,933 | ||||
Stock awards | $ 3 | 61 | 64 | |||
Granted (in shares) | 3,298 | |||||
Exercise of stock options | $ 32 | 342 | 374 | |||
Exercise of stock options (in shares) | 31,931 | |||||
Restricted stock | $ 40 | (40) | ||||
Restricted stock (in shares) | 39,500 | |||||
Stock compensation expense | 517 | 517 | ||||
Common stock dividends | (700) | (700) | ||||
BALANCE at Dec. 31, 2019 | 312,747 | $ 14,008 | 232,732 | 65,839 | 168 | 312,747 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
BALANCE (in shares) | 14,008,233 | |||||
Net income | 24,332 | 24,332 | 24,332 | |||
Other comprehensive gain (loss) | 2,015 | 2,015 | ||||
Exercise of stock options | $ 33 | 306 | 339 | |||
Exercise of stock options (in shares) | 33,556 | |||||
Restricted stock | $ 38 | (38) | ||||
Restricted stock (in shares) | 38,113 | |||||
Common stock issued to shareholders | $ 1,293 | 23,254 | 24,547 | |||
Common stock issued to shareholders (in shares) | 1,292,578 | |||||
Stock compensation expense | 482 | 482 | ||||
Common stock dividends | (2,986) | (2,986) | ||||
Repurchases of common stock | $ (265) | (4,043) | (4,308) | |||
Repurchases of common stock (in shares) | (265,266) | |||||
BALANCE at Dec. 31, 2020 | $ 357,168 | $ 15,107 | $ 252,693 | $ 87,185 | $ 2,183 | $ 357,168 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
BALANCE (in shares) | 15,107,214 |
CONSOLIDATED STATEMENT OF CHA_2
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Common stock dividend, per share | $ 0.20 | $ 0.05 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 24,332 | $ 26,548 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 6,021 | 4,300 |
Accretion of fair value purchase accounting adjustments, net | (4,457) | (5,712) |
Provision for loan losses | 8,683 | 2,599 |
Stock compensation expense | 482 | 517 |
Gain from redemption and sale of securities available-for-sale | (6) | (34) |
Deferred income tax expense | (1,219) | 780 |
Increase in cash surrender value of bank owned life insurance | (707) | (568) |
Loss on disposal of fixed assets | 35 | |
Net (gains) losses from sale of other real estate owned | 187 | (17) |
Net gains from sale of loans | (3,875) | (1,566) |
Origination of loans held for sale | (143,022) | (69,056) |
Proceeds from sales of loans held for sale | 141,031 | 66,744 |
Net change in: | ||
Accrued interest receivable | (2,456) | (347) |
Accrued interest payable | (156) | 398 |
Other assets | 4,529 | (2,106) |
Other liabilities | (298) | 7,351 |
Net cash provided by operating activities | 29,069 | 29,866 |
Cash flows from investing activities: | ||
Proceeds from sales of securities available-for-sale | 11,759 | 16,515 |
Proceeds from maturities and calls of securities available-for-sale | 49,633 | 15,555 |
Proceeds from paydowns of securities available-for-sale | 26,562 | 14,258 |
Proceeds from sales of other investments | 34 | |
Purchases of securities available-for-sale | (94,146) | (17,601) |
Purchase of other investments | (1,223) | (1,414) |
Net increase in loans | (293,964) | (117,216) |
Purchase of premises and equipment | (5,439) | (6,269) |
Proceeds from sale of other assets owned | 1,314 | 1,395 |
Net cash and cash equivalents received from business combination | 46,132 | |
Net cash used in investing activities | (259,338) | (94,777) |
Cash flow from financing activities: | ||
Net increase in deposits | 485,396 | 124,698 |
Net increase (decrease) in securities sold under agreements to repurchase | (381) | (5,572) |
Proceeds from borrowings | 339,675 | 153,581 |
Repayment borrowings | (289,718) | (139,385) |
Cash dividends paid | (2,986) | (700) |
Issuance of common stock | 339 | 438 |
Repurchase of common stock | (4,308) | |
Net cash provided by financing activities | 528,017 | 133,060 |
Net change in cash and cash equivalents | 297,748 | 68,149 |
Cash and cash equivalents, beginning of year | 183,971 | 115,822 |
Cash and cash equivalents, end of period | 481,719 | 183,971 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the period for interest | 16,903 | 24,177 |
Cash paid during the period for income taxes | 8,654 | 6,765 |
Cash received from income tax refunds | 48 | 561 |
Noncash investing and financing activities: | ||
Acquisition of real estate through foreclosure | 971 | 639 |
Transfer from bank premises to other real estate owned | 1,221 | |
Change in goodwill due to acquisitions | 8,521 | (473) |
Initial recognition of operating lease right-of-use assets | 484 | 6,081 |
Initial recognition of operating lease liabilities | $ 484 | $ 6,081 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
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 East and Middle Tennessee, Alabama and Florida panhandle. The Company’s primary deposit products are interest-bearing demand deposits, savings and money market deposits, and time deposits. Its primary lending products are commercial, residential, and consumer loans. Basis of Presentation: The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation. Accounting Estimates: 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 other real estate owned and deferred taxes, other than temporary impairments of securities, the fair value of financial instruments, goodwill, and business combination elements (Day 1 and Day 2 Valuation). 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 in cash or on deposit Bank is required to maintain average balances with the Federal Reserve Bank. During 2020 the Federal Reserve Bank suspended reserve requirements to provide relief related to the COVID-19 pandemic, thus the Bank did not have a reserve requirement at December 31, 2020. The reserve requirement was $49.2 million at December 31, 2019. 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 income. 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 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 income. 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. Other 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 restricted investments for impairment based on the ultimate recoverability of the cost basis in these stocks. Loans Held for Sale: Loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or estimated fair value. Gains and losses on sales of loans held for sale are included in the Consolidated Statements of Income in mortgage banking. Loans held for sale are sold to investors with best effort intent and ability to sell loans as long as they meet the underwriting standards of the potential investor. 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 the contractual terms of the obligation 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 significant 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 PCI 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. 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 at the time of purchase. 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. 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 according to policy, 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. 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. Other Real Estate Owned: Other real estate owned 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 less cost to sell, at the time of transfer to other real estate owned 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 other real estate owned and subsequent write-downs to the value are expensed. The amount of residential real estate where physical possession had been obtained included with in other real estate owned assets at December 31, 2020 and 2019 was $26 thousand and $215 thousand, respectively. There were five residential real estate loans totaling $384 thousand in process of foreclosure at December 31, 2020 and none at December 31, 2019. 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. 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. Other acquired intangible assets with finite lives, such as core deposit intangibles, are initially recorded at fair value and amortized over their estimated useful lives. Intangible assets are evaluated for impairment when events or changes in circumstances indicate a potential impairment accelerated basis typically between five Transfers of Financial Assets: Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company - put presumptively beyond 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. Derivative Instruments: The Company applies hedge accounting to certain interest rate derivatives entered into for risk management purposes. In accordance with ASC Topic 815, Derivatives and Hedging, all derivative instruments are recorded on the accompanying consolidated balance sheet at their respective fair values. The accounting for changes in fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship. If the derivative instrument is not designated as a hedge, changes in the fair value of the derivative instrument are recognized in earnings in the period of change. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative instrument as well as the offsetting loss or gain on the hedged asset or liability attributable to the hedged risk are recognized in current earnings. The gain or loss on the derivative instrument is presented on the same income statement line item as the earnings effect of the hedged item. Revenue Recognition Service charges on deposit accounts Investment services Insurance commissions Interchange and debit card transaction fees, net Other Advertising Costs: The Company expenses all advertising and marketing costs as incurred. 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. 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. Stock-Based Compensation Plans: The Company has stock options, restricted stock awards and stock appreciation rights under stock-based compensation plans, which are described in more detail in Note 13-Employee Benefits. The plans have been accounted for under the accounting guidance (FASB ASC 718, Compensation Stock Compensation) 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. 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 (1) unrealized gains and losses on available-for-sale securities and (2) unrealized gains and losses on effective portions of fair value security hedges, 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. 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 is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding. Diluted earnings per common 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. Operating Segments: The Company’s chief operating decision maker primarily manages operations and assesses financial performance on a Company-wide basis. However, in addition to the discrete financial information that is provided for the Company as a whole, financial information is also provided for the wealth management services, insurance services and mortgage origination segments, respectively. While the chief operating decision maker uses the financial information related to these segments to analyze business performance and allocate resources, these segments do not meet the quantitative threshold under GAAP to be considered a reportable segment. As such, these operating segments, along with the banking operations segment, are aggregated into a single reportable operating segment in the Consolidated Financial Statements. No revenues are derived from foreign countries or from external customers that comprise more than 10% of the Company’s revenues. 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 October 2019, the Financial Accounting Standards Board approved a delay for the implementation of ASU 2016-13, Financial Instruments - Credit Losses In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) In March 2020, the FASB issued ASU 2020-04 , Reference Rate Reform (Topic 848): Recently Issued and Adopted Accounting Pronouncements: As of January 1, 2020, the Company adopted ASU 2019-01, Leases: Codification Improvements and liabilities on the balance sheet and disclosing essential information about leasing transactions. Specifically, ASU 2019-01 (i) allows the fair value of the underlying asset reported by lessors that are not manufacturers or dealers to continue to be its cost and not fair value as measured under the fair value definition, (ii) allows for the cash flows received for sales-type and direct financing leases to continue to be presented as results from investing, and (iii) clarifies that entities do not have to disclose the effect of the lease standard on adoption year interim amounts. The adoption of ASU 2019-01 did not have a material impact on the Company’s consolidated financial statements. As of January 1, 2020, the Company adopted ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In August 2020, the SEC issued amendments to its disclosure rules to modernize the requirements in Regulation S-K, Item 101 on description of a business, Item 103 on legal proceedings, and Item 105 on risk factors. These amendments are intended to improve the readability of disclosures, reduce repetition, and eliminate immaterial information, thereby simplifying compliance for registrants and making disclosures more meaningful for investors. The amendments to the disclosure requirements related to a registrant’s description of its business and risk factors are intended to expand the use of a principles-based approach that gives registrants more flexibility to tailor disclosures. The amendments to the disclosure requirements related to legal proceedings continue to reflect the current, more prescriptive approach because those requirements depend less on a registrant’s specific characteristics. Further, additional human capital disclosures are required as part of the amendments to the description of the business. The final rule was effective on November 9, 2020, and the Company has incorporated the applicable changes as part of our annual filing on this Form 10-K. Operating, Accounting and Reporting Considerations related to COVID-19: The COVID-19 pandemic has negatively impacted the global economy. In response to this crisis, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was passed by Congress and signed into law on March 27, 2020. The CARES Act provides an estimated $2.2 trillion to stimulate the economy by supporting individuals and businesses through loans, grants, tax changes, and other types of relief through the COVID-19 pandemic. Some of the provisions applicable to the Company include, but are not limited to: ● Accounting for Loan Modifications – Section 4013 of the CARES Act provides that a financial institution may elect to suspend (1) the requirements under GAAP for certain loan modifications that would otherwise be categorized as a TDR and (2) any determination that such loan modifications would be considered a TDR, including the related impairment for accounting purposes . See Note 5 Loans and Allowance for Loan Losses for more information. ● Paycheck Protection Program - The CARES Act established the Paycheck Protection Program (“PPP”), an expansion of the Small Business Administration’s (“SBA”) 7(a) loan program and the Economic Injury Disaster Loan Program (“EIDL”), administered directly by the SBA. The Company is a participant in the PPP. See Note 5 Loans and Allowance for Loan Losses for more information. ● Mortgage Forbearance - Under the CARES Act, through the earlier of December 31, 2020, or the termination date of the COVID-19 national emergency, a borrower with a federally backed mortgage loan that is experiencing financial hardship due to COVID-19 may request a forbearance. A multifamily borrower with a federally backed multifamily mortgage loan that was current as of February 1, 2020, and is experiencing financial hardship due to COVID-19 may request forbearance on the loan for up to 30 days, with up to two additional 30-day periods at the borrower’s request. Also in response to the COVID-19 pandemic, the Board of Governors of the Federal Reserve System (“FRB”), the Federal Deposit Insurance Corporation (“FDIC”), the National Credit Union Administration (“NCUA”), the Office of the Comptroller of the Currency (“OCC”), and the Consumer Financial Protection Bureau (“CFPB”), in consultation with the state financial regulators (collectively, the “agencies”) issued a joint interagency statement (issued March 22, 2020; revised statement issued April 7, 2020). Some of the provisions applicable to the Company include, but are not limited to: ● Accounting for Loan Modifications - Loan modifications that do not meet the conditions of the CARES Act may still qualify as a modification that does not need to be accounted for as a TDR. The agencies confirmed with FASB staff that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not TDRs. This includes short-term (e.g., six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or insignificant delays in payment. See Note 5 Loans and Allowance for Loan Losses for more information. ● Past Due Reporting - With regard to loans not otherwise reportable as past due, financial institutions are not expected to designate loans with deferrals granted due to COVID-19 as past due because of the deferral. A loan’s payment date is governed by the due date stipulated in the legal agreement. If a financial institution agrees to a payment deferral, these loans would not be considered past due during the period of the deferral. ● Nonaccrual Status and Charge-offs - During short-term COVID-19 modifications, these loans generally should not be reported as nonaccrual or as classified. The Company began offerin |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Business Combinations | Note 2. Business Combinations Acquisition of Progressive Financial Group, Inc. On March 1, 2020, the Company completed the merger of Progressive Financial Group, Inc., a Tennessee corporation (“PFG”), pursuant to an Agreement and Plan of Merger dated October 29, 2019 (the “Merger Agreement”). In connection with the merger, the Company acquired $301 million of assets and assumed $272 million of liabilities. Pursuant to the Merger Agreement, each outstanding share of PFG common stock was converted into and cancelled in exchange to the right to receive $474.82 in cash, and 62.3808 shares of the Company’s common stock. The Company issued 1,292,578 shares of its common stock and paid $9.8 million in cash as consideration for the Merger. The fair value of consideration paid exceeded the fair value of the identifiable assets and liabilities acquired and resulted in the establishment of goodwill in the amount of $8.5 million, representing the intangible value of PFG’s business and reputation within the markets it served. None of the goodwill recognized is expected to be deductible for income tax purposes. The Company is amortizing the related core deposit intangible of $1.4 million using the effective yield method over 120 months (10 years), which represents the expected useful life of the asset. The Company also established two intangible assets related to the insurance agency acquired as part of the PFG acquisition; 1.) Customer relationships of $1.1 million, amortizing straight-line over 60 months (5 years), 2.) Tradename of $63 thousand, amortizing straight-line over 120 months (10 years). The Company’s operating results for the year ended December 31, 2020, include the operating results of the acquired business for the period subsequent to the merger date of March 1, 2020. The purchased assets and assumed liabilities were recorded at their acquisition date fair values and are summarized in the table below (in thousands) Initial As recorded Fair value Subsequent As recorded by PFG adjustments Adjustments by the Company Assets: Cash & cash equivalents $ 55,971 $ — $ — $ 55,971 Investment securities available-for-sale 27,054 203 — 27,257 Restricted investments 692 — — 692 Loans 191,672 (3,691) — 187,981 Allowance for loan losses (2,832) 2,832 — — Premises and equipment, net 15,681 (2,919) — 12,762 Bank owned life insurance 5,560 — — 5,560 Deferred tax asset, net — 813 78 891 Intangibles — 1,370 1,127 2,497 Other real estate owned 3,695 (100) (1,424) 2,171 Interest Receivable 1,061 (280) — 781 Prepaids 375 (174) — 201 Goodwill 231 (231) — — Other assets 1,881 — — 1,881 Total assets acquired $ 301,041 $ (2,177) $ (219) $ 298,645 Liabilities: Deposits $ 271,276 $ — — $ 271,276 Time deposit premium — 729 — 729 Payables and other liabilities 776 — — 776 Total liabilities assumed 272,052 729 — 272,781 Excess of assets assumed over liabilities assumed $ 28,989 Aggregate fair value adjustments $ (2,906) $ (219) Total identifiable net assets 25,864 Consideration transferred: Cash 9,838 Common stock issued ( 24,547 Total fair value of consideration transferred 34,385 Goodwill $ 8,521 The following table presents additional information related to the purchased credit impaired loans (ASC 310-30) of the acquired loan portfolio at the acquisition date (in thousands) March 1, 2020 Accounted for pursuant to ASC 310-30: Contractually required principal and interest $ 21,107 Non-accretable differences 4,706 Cash flows expected to be collected 16,401 Accretable yield 2,515 Fair value $ 13,886 The following table discloses the impact of the merger with PFG since the acquisition date through the year ended December 31, 2020. The table also presents certain pro-forma information (net interest income and noninterest income (“Revenue”) and net income) as if the PFG acquisition had occurred on January 1, 2019. The pro-forma financial information is not necessarily indicative of the results of operations had the acquisitions been effective as of these dates. Merger-related costs from the PFG acquisition for the year ended December 31, 2020, were $4.6 million and have been excluded from the pro-forma information presented below. The actual results and pro-forma information were as follows (in thousands) Year Ended December 31, Revenue Net Income 2020: Actual PFG results included in statement of income since acquisition date $ 10,227 $ 3,581 Supplemental consolidation pro-forma as if PFG had been acquired January 1, 2019 119,334 27,436 2019: Supplemental consolidation pro-forma as if PFG had been acquired January 1, 2019 $ 115,479 $ 27,952 Termination of Entegra Merger The Company elected to terminate, effective April 23, 2019, the Agreement and Plan of Merger dated January 15, 2019 (the “Merger Agreement”), among the Company, Entegra, and CT Merger Sub, Inc. Entegra elected to terminate the Merger Agreement in order to enter into a definitive merger agreement with a large North Carolina-based financial institution that made a competing offer to acquire Entegra, an offer that SmartFinancial chose not to match. Under the terms of the Merger Agreement, the Company received a termination fee of $6.4 million. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 3. Earnings Per Share Basic earnings per common share is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding. Diluted earnings per common 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 and restricted stock on incremental shares from the assumed conversions for net income per share-basic and net income per share-diluted are presented below. There were 73 thousand antidilutive shares for the year ended December 31, 2020. There were no antidilutive shares for the year ended December 31, 2019. The following is a summary of the basic and diluted earnings per share computation (dollars in thousands, except per share data) 2020 2019 Basic earnings per share computation: Net income available to common stockholders $ 24,332 $ 26,548 Average common shares outstanding – basic 14,955,423 13,953,497 Basic earnings per share $ 1.63 $ 1.90 Diluted earnings per share computation: Net income available to common stockholders $ 24,332 $ 26,548 Average common shares outstanding – basic 14,955,423 13,953,497 Incremental shares from assumed conversions: Stock options and restricted stock 63,752 92,869 Average common shares outstanding - diluted 15,019,175 14,046,366 Diluted earnings per common share $ 1.62 $ 1.89 |
Securities
Securities | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Note 4. Securities The amortized cost and fair value of securities available-for-sale at December 31, 2020 and 2019 are summarized as follow (in thousands) December 31, 2020 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. Government-sponsored enterprises (GSEs) $ 30,526 $ 10 $ (6) $ 30,530 Municipal securities 89,644 2,345 — 91,989 Other debt securities 25,019 112 (13) 25,118 Mortgage-backed securities (GSEs) 66,425 1,754 (182) 67,997 Total $ 211,614 $ 4,221 $ (201) $ 215,634 December 31, 2019 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. Government-sponsored enterprises (GSEs) $ 19,015 $ 41 $ (56) $ 19,000 Municipal securities 63,792 618 (19) 64,391 Other debt securities 3,481 22 (33) 3,470 Mortgage-backed securities (GSEs) 91,531 382 (426) 91,487 Total $ 177,819 $ 1,063 $ (534) $ 178,348 At December 31, 2020 and 2019, securities with a carrying value totaling approximately $80.2 million and $92.3 million, respectively, were pledged to secure public funds and securities sold under agreements to repurchase. The Company has entered into various fair value hedging transactions to mitigate the impact of changing interest rates on the fair values of available for sale securities. See Note 18 - Derivatives Proceeds from sale and maturities and calls of securities available for sale, gross gains and gross losses were as follows (in thousands) Year Ended December 31, 2020 2019 Proceeds from sales $ 11,759 $ 16,515 Gross gains $ 7 $ 35 Gross losses $ (1) $ (1) Proceeds from maturities and calls $ 49,633 $ 15,555 The amortized cost and estimated market value of securities by contractual maturity, are shown below (in thousands) December 31, 2020 Amortized Fair Cost Value Due in one year or less $ 4,907 $ 4,949 Due from one year to five years 4,159 4,174 Due from five years to ten years 36,172 36,442 Due after ten years 99,951 102,072 145,189 147,637 Mortgage-backed securities 66,425 67,997 Total $ 211,614 $ 215,634 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, 2020 and 2019 (in thousands) As of December 31, 2020 Less than 12 Months 12 Months or Greater Total Gross Number Gross Number Gross Number Fair Unrealized of Fair Unrealized of Fair Unrealized of Value Losses Securities Value Losses Securities Value Losses Securities U.S. Government-sponsored enterprises (GSEs) $ 15,510 $ (5) 3 $ 132 $ (1) 1 $ 15,642 $ (6) 4 Municipal securities — — — — — — — — — Other debt securities 1,495 (5) 1 977 (8) 1 2,472 (13) 2 Mortgage-backed securities (GSEs) 9,790 (87) 6 6,083 (95) 3 15,873 (182) 9 Total $ 26,795 $ (97) 10 $ 7,192 $ (104) 5 $ 33,987 $ (201) 15 As of December 31, 2019 Less than 12 Months 12 Months or Greater Total Gross Number Gross Number Gross Number Fair Unrealized of Fair Unrealized of Fair Unrealized of Value Losses Securities Value Losses Securities Value Losses Securities U.S. Government-sponsored enterprises (GSEs) $ 2,972 $ (43) 2 $ 5,987 $ (13) 2 $ 8,959 $ (56) 4 Municipal securities 3,656 (16) 4 527 (3) 1 4,183 (19) 5 Other debt securities — — — 947 (33) 1 947 (33) 1 Mortgage-backed securities (GSEs) 13,208 (194) 10 19,988 (232) 31 33,196 (426) 41 Total $ 19,836 $ (253) 16 $ 27,449 $ (281) 35 $ 47,285 $ (534) 51 The Company reviews the securities portfolio on a quarterly basis to monitor its exposure to other-than-temporary impairment. A determination as to whether a security’s decline in fair value is other-than-temporary takes into consideration numerous factors and the relative significance of any single factor can vary by security. Some factors the Company may consider in the other-than-temporary impairment analysis include the length of time and extent to which the security has been in an unrealized loss position, changes in security ratings, financial condition and near-term prospects of the issuer, as well as security and industry specific economic conditions. Based on this evaluation, the Company concluded that any unrealized losses at December 31, 2020 represented a temporary impairment, as these unrealized losses are primarily attributable to changes in interest rates and current market conditions, and not credit deterioration of the issuers. As of December 31, 2020, the Company does not intend to sell any of the securities, does not expect to be required to sell any of the securities, and expects to recover the entire amortized cost of all of the securities. Other Investments: Our other investments consist of restricted non-marketable equity securities that have no readily determinable market value. Accordingly, when evaluating these securities for impairment, management considers the ultimate recoverability of the par value rather than recognizing temporary declines in value. As of December 31, 2020, the Company determined that there was no impairment on its other investment securities. The following is the amortized cost and carrying value of other investments (in thousands) December 31, December 31, 2020 2019 Federal Reserve Bank stock $ 8,606 $ 7,917 Federal Home Loan Bank stock 5,838 4,646 First National Bankers Bank stock 350 350 Total $ 14,794 $ 12,913 |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | Note 5. Loans and Allowance for Loan Losses Portfolio Segmentation: Major categories of loans are summarized as follows (in thousands) December 31, 2020 December 31, 2019 PCI All Other PCI All Other Loans Loans Total Loans Loans Total Commercial real estate $ 16,123 $ 996,853 $ 1,012,976 $ 15,255 $ 890,051 $ 905,306 Consumer real estate 10,258 433,672 443,930 6,541 410,941 417,482 Construction and land development 5,348 272,727 278,075 4,458 223,168 227,626 Commercial and industrial 308 634,138 634,446 407 336,668 337,075 Consumer and other 27 12,789 12,816 326 9,577 9,903 Total loans 32,064 2,350,179 2,382,243 26,987 1,870,405 1,897,392 Less: Allowance for loan losses (309) (18,037) (18,346) (156) (10,087) (10,243) Loans, net $ 31,755 $ 2,332,142 $ 2,363,897 $ 26,831 $ 1,860,318 $ 1,887,149 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: 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: Construction and Land Development: Commercial and Industrial: Consumer and Other: 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 Director and Loan Committees. The allowance for loan losses is a valuation reserve 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; (7) effectiveness of the Company’s loan policies, procedures and internal controls; (8) COVID-19 loan modification factor and (9) COVID-19 Q factor, which is based upon active COVID cases within the Company’s footprint. 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 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. As previously mentioned in Note 1 – Presentation of Financial Information The composition of loans by loan classification for impaired and performing loan status is summarized in the tables below (in thousands) Construction Commercial Commercial Consumer and Land and Consumer Real Estate Real Estate Development Industrial and Other Total December 31, 2020: Performing loans $ 992,982 $ 432,356 $ 272,727 $ 633,992 $ 12,789 $ 2,344,846 Impaired loans 3,871 1,316 — 146 — 5,333 996,853 433,672 272,727 634,138 12,789 2,350,179 PCI loans 16,123 10,258 5,348 308 27 32,064 Total loans $ 1,012,976 $ 443,930 $ 278,075 $ 634,446 $ 12,816 $ 2,382,243 December 31, 2019: Performing loans $ 889,795 $ 409,394 $ 222,621 $ 336,508 $ 9,577 $ 1,867,895 Impaired loans 256 1,547 547 160 — 2,510 890,051 410,941 223,168 336,668 9,577 1,870,405 PCI loans 15,255 6,541 4,458 407 326 26,987 Total loans $ 905,306 $ 417,482 $ 227,626 $ 337,075 $ 9,903 $ 1,897,392 The following tables show the allowance for loan losses allocation by loan classification for impaired, PCI, and performing loans (in thousands) Construction Commercial Consumer Commercial Consumer and Land and and Real Estate Real Estate Development Industrial Other Total December 31, 2020: Performing loans $ 7,579 $ 3,267 $ 2,076 $ 4,768 $ 110 $ 17,800 Impaired loans — 116 — 121 — 237 7,579 3,383 2,076 4,889 110 18,037 PCI loans — 88 — 218 3 309 Total loans $ 7,579 $ 3,471 $ 2,076 $ 5,107 $ 113 $ 18,346 December 31, 2019: Performing loans $ 4,491 $ 2,159 $ 1,127 $ 1,766 $ 69 $ 9,612 Impaired loans — 343 — 132 — 475 4,491 2,502 1,127 1,898 69 10,087 PCI loans 17 74 — 59 6 156 Total loans $ 4,508 $ 2,576 $ 1,127 $ 1,957 $ 75 $ 10,243 The following tables detail the changes in the allowance for loan losses by loan classification (in thousands) Year Ended December 31, 2020 Consumer Construction Commercial Commercial Real and Land and Consumer Real Estate Estate Development Industrial and Other Total Beginning balance $ 4,508 $ 2,576 $ 1,127 $ 1,957 $ 75 $ 10,243 Loans charged-off — (23) — (420) (398) (841) Recoveries of loans charged-off 19 39 2 114 87 261 Provision charged to expense 3,052 879 947 3,456 349 8,683 Ending balance $ 7,579 $ 3,471 $ 2,076 $ 5,107 $ 113 $ 18,346 Year Ended December 31, 2019 Consumer Construction Commercial Commercial Real and Land and Consumer Real Estate Estate Development Industrial and Other Total Beginning balance $ 3,639 $ 1,789 $ 795 $ 1,746 $ 306 $ 8,275 Loans charged-off (36) (4) — (659) (344) (1,043) Recoveries of loans charged-off 65 164 8 77 98 412 Provision charged to expense 840 627 324 793 15 2,599 Ending balance $ 4,508 $ 2,576 $ 1,127 $ 1,957 $ 75 $ 10,243 We maintain the allowance at a level that we deem appropriate to adequately cover the probable losses inherent in the loan portfolio. Our provision for loan losses for the year ended December 31, 2020, is $8.7 million compared to $2.6 million in the same period of 2019, an increase of $6.1 million. As of December 31, 2020, and 2019, our allowance for loan losses was $18.3 million and $10.2 million, respectively, which we deemed to be adequate at each of the respective dates. The increase in the allowance for loan losses at December 31, 2020, as compared to December 31, 2019, is primarily attributable to the ongoing economic uncertainties related to the COVID-19 pandemic. Also, during 2020, the Company updated the Allowance for Loan Loss policy to increase the additional basis points allowed for the unallocated risk portion from 100 basis points to 125 basis points. In addition, the Company added two new qualitative factors; 1.) based on the percentage of COVID modified loans to total loans and 2.) the average number of COVID cases within our footprint. The qualitative factors were also expanded to provide additional granularity related to the hospitality and restaurant industries which are most impacted by the pandemic within our footprint. The changes in our economic factors and the addition of the COVID modified factors equated to an additional $8.3 million in reserve. Our allowance for loan loss as a percentage of total loans was 0.77% at December 31, 2020 and 0.54% at December 31, 2019. A description of the general characteristics of the risk grades used by the Company is as follows: Pass: Watch: Special Mention: Substandard: Doubtful: Uncollectible: The following tables outline the amount of each loan classification and the amount categorized into each risk rating (in thousands) December 31, 2020 Construction Commercial Commercial Consumer and Land and Consumer Non PCI Loans: Real Estate Real Estate Development Industrial and Other Total Pass $ 922,153 $ 417,302 $ 269,350 $ 625,836 $ 12,622 $ 2,247,263 Watch 66,287 14,218 3,296 7,673 137 91,611 Special mention 4,446 46 — 320 — 4,812 Substandard 3,967 2,020 81 261 30 6,359 Doubtful — 86 — 48 — 134 Total 996,853 433,672 272,727 634,138 12,789 2,350,179 PCI Loans: Pass 11,072 8,382 1,008 262 25 20,749 Watch 3,381 224 3,820 — 2 7,427 Special mention 19 57 — — — 76 Substandard 1,651 1,595 520 46 — 3,812 Doubtful — — — — — — Total 16,123 10,258 5,348 308 27 32,064 Total loans $ 1,012,976 $ 443,930 $ 278,075 $ 634,446 $ 12,816 $ 2,382,243 December 31, 2019 Construction Commercial Commercial Consumer and Land and Consumer Non PCI Loans: Real Estate Real Estate Development Industrial and Other Total Pass $ 860,447 $ 407,336 $ 216,459 $ 328,564 $ 9,462 $ 1,822,268 Watch 25,180 989 6,089 6,786 40 39,084 Special mention 4,057 738 — 1,033 — 5,828 Substandard 367 1,713 620 228 51 2,979 Doubtful — 165 — 57 24 246 Total 890,051 410,941 223,168 336,668 9,577 1,870,405 PCI Loans: Pass 12,473 5,258 902 41 300 18,974 Watch 2,234 38 3,556 — 13 5,841 Special mention 139 60 — — — 199 Substandard 409 1,185 — 366 13 1,973 Doubtful — — — — — — Total 15,255 6,541 4,458 407 326 26,987 Total loans $ 905,306 $ 417,482 $ 227,626 $ 337,075 $ 9,903 $ 1,897,392 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 an aging analysis of our loan portfolio (in thousands) December 31, 2020 30-60 Days 61-89 Days Past Due 90 Total Past Due and Past Due and Days or More Past Due and PCI Current Total Accruing Accruing and Accruing Nonaccrual Nonaccrual Loans Loans Loans Commercial real estate $ 134 $ — $ 67 $ 3,740 $ 3,941 $ 16,123 $ 992,912 $ 1,012,976 Consumer real estate 1,916 51 82 1,823 3,872 10,258 429,800 443,930 Construction and land development 245 — — 12 257 5,348 272,470 278,075 Commercial and industrial 12 76 — 36 124 308 634,014 634,446 Consumer and other 14 5 — 22 41 27 12,748 12,816 Total $ 2,321 $ 132 $ 149 $ 5,633 $ 8,235 $ 32,064 $ 2,341,944 $ 2,382,243 December 31, 2019 30-60 Days 61-89 Days Past Due 90 Total Past Due and Past Due and Days or More Past Due and PCI Current Total Accruing Accruing and Accruing Nonaccrual Nonaccrual Loans Loans Loans Commercial real estate $ 466 $ 22 $ — $ 124 $ 612 $ 15,255 $ 889,439 $ 905,306 Consumer real estate 1,564 30 — 1,872 3,466 6,541 407,475 417,482 Construction and land development 507 — 607 620 1,734 4,458 221,434 227,626 Commercial and industrial 559 53 — 57 669 407 335,999 337,075 Consumer and other 86 14 — 70 170 326 9,407 9,903 Total $ 3,182 $ 119 $ 607 $ 2,743 $ 6,651 $ 26,987 $ 1,863,754 $ 1,897,392 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, including PCI loans, detailing the related allowance recorded (in thousands) December 31, 2020 December 31, 2019 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance Impaired loans without a valuation allowance: Commercial real estate $ 3,871 $ 3,872 $ — $ 256 $ 261 $ — Consumer real estate 888 888 — 553 553 — Construction and land development — — — 547 547 — Commercial and industrial — — — — — — Consumer and other — — — — — — 4,759 4,760 — 1,356 1,361 — Impaired loans with a valuation allowance: Commercial real estate — — — — — — Consumer real estate 428 428 116 994 994 343 Construction and land development — — — — — — Commercial and industrial 146 146 121 160 160 132 Consumer and other — — — — — — 574 574 237 1,154 1,154 475 PCI loans: Commercial real estate — — — 17 99 17 Consumer real estate 1,827 2,086 88 1,205 1,371 74 Construction and land development — — — — — — Commercial and industrial 270 234 218 396 534 59 Consumer and other 21 20 3 45 51 6 2,118 2,340 309 1,663 2,055 156 Total impaired loans $ 7,451 $ 7,674 $ 546 $ 4,173 $ 4,570 $ 631 December 31, 2020 December 31, 2019 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized Impaired loans without a valuation allowance: Commercial real estate $ 1,073 $ 12 $ 399 $ 30 Consumer real estate 701 33 725 15 Construction and land development 231 — 619 5 Commercial and industrial — — 20 1 Consumer and other — — 11 1 2,005 45 1,774 52 Impaired loans with a valuation allowance: Commercial real estate 158 2 9 1 Consumer real estate 656 24 397 17 Construction and land development — — 11 — Commercial and industrial 244 8 430 16 Consumer and other — — 23 — 1,058 34 870 34 PCI loans: Commercial real estate 200 1 1,518 (25) Consumer real estate 1,461 117 922 42 Construction and land development 46 — — — Commercial and industrial 321 7 79 9 Consumer and other 27 — 9 1 2,055 125 2,528 27 Total impaired loans $ 5,118 $ 204 $ 5,172 $ 113 Troubled Debt Restructurings: At December 31, 2020 and 2019, impaired loans included loans that were classified as 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, 2020, and 2019, management had approximately $257 thousand and $61 thousand, respectively, in loans that met the criteria for TDR restructured loans, 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. The following table presents a summary of loans that were modified as troubled debt restructurings during the year ended December 31, 2020 (dollars in thousands) Pre-Modification Post-Modification Outstanding Outstanding Recorded Recorded December 31, 2020 Number of Contracts Investment Investment Consumer real estate 1 $ 108 $ 108 Commercial and industrial 3 141 141 Consumer other 1 8 8 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. The Company began offering short-term loan modifications to assist borrowers during the COVID-19 national emergency. The Coronavirus Aid Relief and Economic Security (“CARES”) Act along with a joint agency statement issued by banking agencies, provides that short-term modifications made in response to COVID-19 does not need to be accounted for as a TDR. Accordingly, the Company does not account for such loan modifications as TDRs. See Note 1 Presentation of Financial Information Foreclosure Proceedings and Balances : As of December 31, 2020, the amount of residential real estate where physical possession had been obtained and included with in other real estate owned assets was one property for $26 thousand and one property for $215 thousand at December 31, 2019. There were five residential real estate loans totaling $384 thousand in process of foreclosure at December 31, 2020 and none at December 31, 2019. 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 for the years ended December 31, are as follows (in thousands) 2020 2019 Commercial real estate $ 23,787 $ 21,570 Consumer real estate 12,692 8,411 Construction and land development 1,812 5,394 Commercial and industrial 6,521 2,540 Consumer and other 161 504 Total loans 44,973 38,419 Less: Remaining purchase discount (12,909) (11,432) Total loans, net of purchase discount 32,064 26,987 Less: Allowance for loan losses (309) (156) Carrying amount, net of allowance $ 31,755 $ 26,831 The following is a summary of the accretable yield on acquired loans for the years ended December 31, (in thousands) 2020 2019 Accretable yield, beginning of period $ 8,454 $ 7,052 Additions 2,515 — Accretion income (5,347) (4,627) Reclassification 2,792 3,555 Other changes, net 8,475 2,474 Accretable yield, end of period $ 16,889 $ 8,454 There was an allowance for loan losses on purchase credit impaired loans at the years ended December 31, 2020 and 2019 of $309 thousand and $156 thousand, respectively. Related Party Loans: In the ordinary course of business, the Company has granted loans to certain related interests, including directors, executive officers, and their affiliates (collectively referred to as "related parties"). Such loans 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. A summary of activity in loans to related parties is as follows (in thousands) 2020 2019 Balance, beginning of year $ 24,091 $ 31,246 Disbursements 7,108 16,297 Repayments (16,740) (23,452) Balance, end of year $ 14,459 $ 24,091 At December 31, 2020, the Company had pre-approved but unused lines of credit totaling approximately $6.2 million to related parties. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Note 6. Premises and Equipment A summary of premises and equipment at December 31, is as follows (in thousands) Useful Life 2020 2019 Land and land improvements Indefinite $ 16,724 $ 14,712 Building and leasehold improvements 15-40 years 53,701 38,640 Furniture, fixtures and equipment 3-7 years 18,095 13,744 Construction in progress 964 5,523 Total, gross 89,484 72,619 Accumulated depreciation (16,802) (13,186) Total, net $ 72,682 $ 59,433 At December 31, 2020 management estimates the cost necessary to complete the construction in progress will be approximately $150 thousand. Depreciation and amortization expense relating to premises and equipment was $3.7 million and $2.8 million for the years ended December 31, 2020 and 2019, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 7. Goodwill and Intangible Assets Goodwill and Intangible Assets: In accordance with FASB ASC 350, Goodwill and Other The Company’s other intangible assets consist of core deposit intangibles, insurance agency customer relationships and insurance agency tradename. They are initially recognized based on a valuation performed as of the consummation date. The core deposit intangible is amortized over the average remaining life of the acquired customer deposits, the insurance agency customer relationships are amortized over ten years and the insurance agency tradename is amortized over five years. The carrying amount of goodwill and other intangible assets as of the dates indicated is summarized below (in thousands) December 31, December 31, 2020 2019 Goodwill: Balance, beginning of period $ 65,614 $ 66,087 Adjustment to values initially recorded for Acquisition of Foothills Bancorp, Inc. — (473) Acquisition of PFG 8,521 — Balance, end of the period $ 74,135 $ 65,614 Core Deposit Insurance Agency Insurance Agency Amortized other intangible assets: Intangibles Customer Relationships Tradename Total Beginning balance January 1, 2020 $ 14,550 $ - $ - $ 14,550 Acquisition of PFG 1,370 1,064 63 2,497 Balance, December 31, 2020, other intangible assets, gross 15,920 1,064 63 17,047 Less: accumulated amortization (4,540) (161) (10) (4,711) Balance, December 31, 2020, other intangible assets, net 11,380 903 53 12,336 Beginning balance January 1, 2019 $ 14,550 $ - $ - $ 14,550 Less: accumulated amortization (2,971) - - (2,971) Balance, December 31, 2019, other intangible assets, net 11,579 - - 11,579 The aggregate amortization expense for other intangibles assets for the years ended December 31, 2020 and 2019, was $1.7 million and $1.4 million, respectively. The estimated aggregate amortization expense for future periods for other intangible assets is as follows (in thousands) 2021 $ 1,760 2022 1,697 2023 1,636 2024 1,588 2025 1,531 Thereafter 4,124 Total $ 12,336 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2020 | |
Deposits [Abstract] | |
Deposits | Note 8. Deposits The aggregate amount of time deposits in denominations of $250,000 or more was $138.1 million and $136.5 million at December 31, 2020 and 2019, respectively. At December 31, 2020, the scheduled maturities of time deposits are as follows (in thousands) 2021 $ 389,097 2022 82,271 2023 44,957 2024 22,444 2025 10,906 Thereafter 487 Total $ 550,162 As of December 31, 2020, and 2019, there was a fair value adjustment of $336 thousand and $206 thousand, respectively, to time deposits as a result of business combinations. At December 31, 2020 and 2019, the Company had $285 thousand and $254 thousand, 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 $21.6 million and $16.8 million at December 31, 2020 and 2019, respectively. |
Borrowings and Line of Credit
Borrowings and Line of Credit | 12 Months Ended |
Dec. 31, 2020 | |
Borrowings and Line of Credit [Abstract] | |
Borrowings and Line of Credit | Note 9. Borrowings and Line of Credit Securities Sold Under Agreements to Repurchase: Securities sold under repurchase agreements, which are secured borrowings, generally mature within one At December 31, 2020 and 2019, the Company had securities sold under agreements to repurchase of $5.8 million and $6.2 million, respectively, with commercial checking customers which were secured by government agency securities. The carrying value of investment securities pledged as collateral under repurchase agreements was $7.6 million and $12.9 million at December 31, 2020 and December 31, 2019, respectively. Federal Reserve Bank: The bank has agreements with the Federal Reserve Bank’s discount window to provide additional funding to the Bank. The Federal Reserve discount window line is collateralized by a pool of commercial real estate loans and commercial and industrial loans. At December 31, 2020 and 2019, the funding capacity and loans secured for borrowings was as follows (in thousands) 2020 2019 Maximum funding capacity $ 149,219 $ 6,994 Borrowings — — Additional funding capacity $ 149,219 $ 6,994 Loans secured for borrowings $ 258,774 $ 9,562 Federal Home Loan Bank Advances: The Bank has agreements with the Federal Home Loan Bank of Cincinnati ("FHLB") that can provide advances to the Bank. All of the advances are secured by first mortgages on 1-4 family residential, multi-family properties and commercial properties and are pledged as collateral for these advances. There were no securities pledged to FHLB at December 31, 2020 and 2019. At December 31, 2020 and 2019, the borrowing capacity and loans secured for advances was as follows (in thousands) 2020 2019 Maximum borrowing capacity $ 194,445 $ 156,059 FHLB advances (75,000) (25,000) Secured lines of credit (83,982) (83,982) Additional borrowing capacity $ 35,463 $ 47,077 Loans secured for advances $ 281,670 $ 554,371 At December 31, 2020 and 2019, FHLB advances consist of the following (in thousands) 2020 2019 Long-term advance dated September 10, 2019, requiring monthly interest payments, fixed at 0.93%, with a put option exercisable on September 10, 2020 and then quarterly thereafter, principal due in September 2029. 1 $ 25,000 $ 25,000 Long-term advance dated February 28, 2020, requiring monthly interest payments, fixed at 0.46%, with a put option exercisable on February 26, 2021 and then quarterly thereafter, principal due in February 2030. 1 50,000 — Total $ 75,000 $ 25,000 1 Other Borrowings: On May 1, 2018, the Company entered into a loan agreement in the amount of $500 thousand at a rate of 4.75% with semi-annual payments of principal plus accrued interest over an amortization period of ten years. The outstanding principal balance of the borrowing at December 31, 2020 and 2019 was $396 thousand and $439 thousand, respectively, with a maturity on April 30, 2028. Scheduled maturities : At December 31, 2020, scheduled maturities of the FHLB advances and other borrowings are as follows (in thousands) 2021 $ 45 2022 47 2023 50 2024 52 2025 54 Thereafter 75,148 Total $ 75,396 Federal Funds Purchased: There were no federal funds purchased as of December 31, 2020 and 2019, respectively. Line of Credit: The Company has a Loan and Security Agreement and revolving note with ServisFirst Bank, pursuant to which ServisFirst Bank has made a $25.0 million revolving line of credit available to the Company. The maturity of the line of credit is September 24, 2021. At December 31, 2020, there was no outstanding balance under the line of credit, and the entire amount of the line of credit remained available to the Company. |
Subordinated debt
Subordinated debt | 12 Months Ended |
Dec. 31, 2020 | |
Subordinated debt [Abstract] | |
Subordinated debt | Note 10. Subordinated Debt On September 28, 2018, the Company issued $40 million of 5.625% fixed-to-floating rate subordinated notes (the "Notes"), which was outstanding as of December 31, 2020 and 2019. Unamortized debt issuance cost was $654 thousand and $739 thousand at December 31, 2020 and 2019, respectively. The Notes initially bears interest at a rate of 5.625% per annum from and including September 28, 2018, to but excluding October 2, 2023, with interest during this period payable semi-annually in arrears. From and including October 2, 2023, to but excluding the maturity date or early redemption date, the interest rate will reset quarterly to an annual floating rate equal to three-month LIBOR, or an alternative rate determined in accordance with the terms of the Notes if three-month LIBOR cannot be determined, plus 255 basis points, with interest during this period payable quarterly in arrears. The Notes are redeemable by the Company, in whole or in part, on or after October 2, 2023, and at any time, in whole but not in part, upon the occurrence of certain events. The Notes have been structured to qualify initially as Tier 2 capital for the Company for regulatory capital purposes. The Notes debt issuance costs totaled $842 thousand and will be amortized through the Notes’ maturity date. Amortization expense totaled $84 thousand and $84 thousand for the years ended December 31, 2020 and 2019, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Note 11. Leases A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. On January 1, 2019, the Company adopted ASU No. 2016-02 and all subsequent ASUs that modified this topic (collectively referred to as "Topic 842"). For the Company, Topic 842 primarily affected the accounting treatment for operating lease agreements in which the Company is the lessee. Substantially all of the leases in which the Company is the lessee are comprised of real estate for branches and office space with terms extending through 2034. All of our leases are classified as operating leases, and therefore, were previously not recognized on the Company’s consolidated balance sheet. With the adoption of Topic 842, operating lease agreements are required to be recognized on the consolidated balance sheet as a right-of-use (“ROU”) asset and a corresponding lease liability. The following table represents the consolidated balance sheet classification of the Company’s ROU assets and lease liabilities. The Company elected not to include short-term leases (i.e., leases with initial terms of twelve months or less), or equipment leases (deemed immaterial) on the consolidated balance sheet (in thousands) December 31, December 31, Classification 2020 2019 Assets: Operating lease right-of-use assets Other assets $ 4,797 $ 5,470 Liabilities: Operating lease liabilities Other liabilities $ 4,827 $ 5,479 The calculated amount of the ROU assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. For operating leases existing prior to January 1, 2019, the rate for the remaining lease term as of January 1, 2019 was used. As of December 31, 2020, the weighted average remaining lease term was 11.28 years and the weighted average discount rate was 2.72%. The Company elected, for all classes of underlying assets, not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance. The following table represents lease costs and other lease information for the years ended December 31, (in thousands) 2020 2019 Lease costs: Operating lease costs $ 1,044 $ 703 Short-term lease costs — 12 Variable lease costs 111 95 Total $ 1,155 $ 810 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,265 $ 693 Future minimum payments for operating leases with initial or remaining terms of one year or more as of December 31, 2020 were as follows (in thousands) Amounts 2021 $ 804 2022 623 2023 485 2024 366 2025 348 Thereafter 3,032 Total future minimum lease payments 5,658 Amounts representing interest (831) Present value of net future minimum lease payments $ 4,827 Lease expense for the years ended December 31, 2020 and 2019, was $1.2 million and $875 thousand, respectively. The Company entered into two leasing arrangements for branch offices with companies that are wholly owned by a board of director’s immediate family. The Company has determined that these leasing arrangements were considered economically fair and in the best interest of the Company. For the years ended December 31, 2020 and 2019, the Company paid $150 thousand and $89 thousand, respectively, for base rent payments. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 12. Income Taxes Income tax expense in the consolidated statements of income for the years ended December 31, 2020 and 2019, includes the following (in thousands) 2020 2019 Current tax expense Federal $ 6,330 $ 5,143 State 1,447 974 Deferred tax expense related to: Federal (991) 678 State (228) 102 Total income tax expense $ 6,558 $ 6,897 The income tax expense is different from the expected tax expense computed by multiplying income before income tax expense by the statutory income tax rate of 21%. The reasons for this difference are as follows (in thousands): 2020 2019 Federal income tax expense computed at the statutory rate $ 6,487 $ 7,024 State income taxes, net of federal tax benefit 923 872 Nondeductible acquisition expenses 109 — Tax-exempt interest (555) (469) Tax benefit from stock options (14) (24) Other (392) (506) Total income tax expense $ 6,558 $ 6,897 The components of the net deferred tax asset as of December 31, 2020 and 2019, were as follows (in thousands): 2020 2019 Deferred tax assets: Allowance for loan losses $ 4,744 $ 2,688 Fair value adjustments 3,854 4,098 Unrealized losses on securities — — Unrealized losses on hedges or derivative securities 278 79 Other real estate owned 523 25 Deferred compensation 1,103 976 Lease liability 1,248 1,438 Federal net operating loss carryforward — 221 Other 82 442 Total deferred tax assets 11,832 9,967 Deferred tax liabilities: Accumulated depreciation 1,374 1,610 Core deposit intangible 3,112 2,971 Right of use asset 1,240 1,435 Unrealized gains on available-for-sale securities 1,051 139 Other 663 332 Total deferred tax liabilities 7,440 6,487 Net deferred tax asset $ 4,392 $ 3,480 During 2020, the CARES Act was passed allowing the five year carryback of net operating losses (“NOLs”). The Federal NOLs acquired with Foothills Bancorp, Inc. and Tennessee Bancshares, Inc. were carried back for a refund in 2020. The income tax returns of the Company for 2019, 2018, and 2017 are subject to examination by the federal and state taxing authorities, generally for three years after they were filed. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Defined Benefit Plan [Abstract] | |
Employee Benefit Plans | Note 13. 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 90 days of service the Company matches 100% of employee contributions up to 3% of compensation and 50% of employee contributions on the next 2% of compensation. The Company’s contribution to the Plan was $1.1 million in 2020 and $818 thousand in 2019. Equity Incentive Plans: The Compensation Committee of the Company’s Board of Directors may grant or award eligible participants stock options, restricted stock, restricted stock units, stock appreciation rights, and other stock-based awards or any combination of awards (collectively referred to herein as "Rights"). At December 31, 2020, the Company had one active equity incentive plan available for future grants, the 2015 Stock Incentive Plan, which had 26,601 rights issued and 1,876,894 Rights available for future grants or awards. In addition, the Company has 30,500 Rights issued from the Cornerstone Bancshares, Inc. 2002 Long Term Incentive Plan, 40,250 Rights issued from the Cornerstone Non-Qualified Plan Options, and 2,266 Rights issued from the Capstone Stock Option Plan. These plans do not have any Rights available for future grants or awards. Stock Options: A summary of the activity in these stock option plans is presented in the following table: Weighted Average Exercisable Number Price Outstanding at December 31, 2018 170,625 $ 10.61 Granted — — Exercised (31,931) 11.85 Forfeited (2,036) 12.20 Outstanding at December 31, 2019 136,658 10.29 Granted — — Exercised (33,556) 10.12 Forfeited (3,485) 15.05 Outstanding at December 31, 2020 99,617 10.19 Information pertaining to options outstanding at December 31, 2020, is as follows: Options Outstanding Options Exercisable Weighted- Average Weighted- Weighted- Remaining Average Average Exercise Number Contractual Exercise Number Exercise Prices Outstanding Life Price Exercisable Price $ 6.60 19,250 1.19 years $ 6.60 19,250 $ 6.60 6.80 11,250 0.16 years 6.80 11,250 6.80 9.48 18,500 2.19 years 9.48 18,500 9.48 9.60 21,750 2.99 years 9.60 21,750 9.60 11.76 2,266 1.50 years 11.76 2,266 11.76 15.05 26,601 4.57 years 15.05 26,601 15.05 Outstanding, end of period 99,617 2.57 years $ 10.19 99,617 $ 10.19 The Company did not recognize any stock option-based compensation expense for the period ended December 31, 2020, as all stock options are fully vested. During the period ended December 31, 2019, stock option-based compensation was $121 thousand. The intrinsic value of options exercised during the periods ended December 31, 2020 and 2019 was $190 thousand and $372 thousand, respectively. The aggregate intrinsic value of total options outstanding No options vested during the periods ended December 31, 2020, and 2019, respectively. The income tax benefit recognized for the exercise of options during the periods ended December 31, 2020 and 2019 was $18 thousand and $61 thousand, respectively. As of December 31, 2020, all options were fully vested and currently no future compensation cost will be recognized related to nonvested stock-based compensation arrangements granted under the Plans. Restricted Stock Awards: A summary of the activity of the Company’s unvested restricted stock awards for the year ended December 31, 2020 is presented below: The following table summarizes activity relating to non-vested restricted stock awards: Weighted Average Grant-Date Number Fair Value Balance at December 31, 2019 65,400 $ 21.04 Granted 43,613 15.95 Vested (7,295) 18.32 Forfeited/expired (1,500) 18.12 Balance at December 31, 2020 100,218 $ 19.07 The Company measures the fair value of restricted stock awards based on the price of the Company’s common stock on the grant date, and compensation expense is recorded over the vesting period. The compensation expense for restricted stock awards during the periods ended December 31, 2020 and 2019, was $482 thousand and $396 thousand, respectively. As of December 31, 2020, there was $1.0 million, respectively, of unrecognized compensation cost related to non-vested restricted stock awards granted under the plan. The cost is expected to be recognized over a weighted average period of 2.85 years. The grant-date fair value of restricted stock awards vested was $134 thousand for the period ended December 31, 2020. Stock Appreciation Rights ("SARs"): When SAR’s are issued, they are assigned an exercisable price based on the closing stock price on the date of grant. The SAR’s are recorded at fair market value and adjusted through salaries and employee benefits expense. The SAR’s will be settled through cash based on the difference of Company’s closing stock price on exercise date and original grant date stock price. SARs compensation expense of $51 thousand and $134 thousand was recognized for the years ended December 31, 2020 and 2019, respectively. A summary of the status of SARs plans is presented in the following table: Weighted Average Number Exercisable Price Outstanding at December 31, 2018 50,000 $ 21.64 Granted 21,000 18.12 Exercised — — Forfeited/Expired (4,000) 21.67 Outstanding at December 31, 2019 67,000 20.54 Granted 18,000 15.19 Exercised — — Forfeited/Expired (12,000) 21.72 Outstanding at December 31, 2020 73,000 $ 19.02 Information pertaining to SARs outstanding at December 31, 2020, is as follows: SARs Outstanding SARs Exercisable Weighted- Average Weighted- Remaining Average Weighted- Average Exercise Number Contractual Exercise Number Exercise Prices Outstanding Life Price Exercisable Price $ 15.19 18,000 3.00 years $ 15.19 — $ — 18.12 21,000 2.00 years 18.12 — — 21.61 34,000 1.00 years 21.61 — — Outstanding, end of period 73,000 1.78 years $ 19.02 — $ — |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 14. Commitments and Contingent Liabilities 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 for the years ended December 31, 2020 and 2019, are as follows (in thousands) 2020 2019 Commitments to extend credit $ 476,841 $ 384,411 Standby letters of credit 5,261 11,727 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, 2020 and 2019, 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, 2020 and 2019. Contingent Liabilities: The Company is subject in the normal course of business to various pending and threatened legal proceedings in which claims for monetary damages are asserted. Management, after consultation with legal counsel, does not anticipate that the aggregate ultimate liability arising out of litigation pending or threatened against the Company will be material to the Company’s consolidated financial position. On an on-going basis, the Company assesses any potential liabilities or contingencies in connection with such legal proceedings. For those matters where it is deemed probable that the Company will incur losses and the amount of the losses can be reasonably estimated, the Company would record an expense and corresponding liability in its consolidated financial statements. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2020 | |
Banking and Thrift [Abstract] | |
Regulatory Matters | Note 15. Regulatory Matters Regulatory Capital Requirements: The final rules implementing the Basel Committee on Banking Supervision's capital guidelines for U.S. banks (Basel III rules) became effective January 1, 2015. In order to avoid restrictions on capital distributions and discretionary bonus payments to executives, under the new rules a covered banking organization is also required to maintain a “capital conservation buffer” in addition to its minimum risk-based capital requirements. This buffer is required to consist solely of common equity Tier 1, and the buffer applies to all three risk-based measurements (CET1, Tier 1 capital and total capital). As of January 1, 2019, an additional amount of Tier 1 common equity equal to 2.5% of risk-weighted assets is required for compliance with the capital conservation buffer. The ratios for the Company and the Bank are currently sufficient to satisfy the fully phased-in conservation buffer. At December 31, 2020, the Company and the Bank exceeded the minimum regulatory requirements and exceeded the threshold for the "well capitalized" regulatory classification. 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 (the “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. Because this test involves a measure of net income, any charge on the Bank’s income statement, such as an impairment of goodwill, could impair the Bank’s ability to pay dividends to the Company. Under Tennessee corporate law, the Company is not permitted to pay dividends if, after giving effect to such payment, it would not be able to pay its debts as they become due in the usual course of business or its total assets would be less than the sum of its total liabilities plus any amounts needed to satisfy any preferential rights if it were dissolving. In addition, in deciding whether or not to declare a dividend of any particular size, the Company’s board of directors must consider its and the Bank’s current and prospective capital, liquidity, and other needs. In addition to state law limitations on the Company’s ability to pay dividends, the Federal Reserve imposes limitations on the Company’s ability to pay dividends. Federal Reserve regulations limit dividends, stock repurchases and discretionary bonuses to executive officers if the Company’s regulatory capital is below the level of regulatory minimums plus the applicable capital conservation buffer. During the year ended December 31, 2020, the Bank paid $13.9 million in dividends to the Company and no dividends were paid during the year ended December 31, 2019. Since the fourth quarter of 2019, the Company has paid a quarterly common stock dividend of $0.05 per share. The amount and timing of all future dividend payments by the Company, if any, is subject to discretion of the Company’s board of directors and will depend on the Company’s earnings, capital position, financial condition and other factors, including new regulatory capital requirements, as they become known to the Company. Regulatory Capital Levels: Actual and required capital levels at December 31, 2020 and 2019 are presented below (dollars in thousands) Minimum to be well capitalized under Minimum for prompt capital corrective action Actual adequacy purposes provisions 1 Amount Ratio Amount Ratio Amount Ratio December 31, 2020 SmartFinancial: Total Capital (to Risk Weighted Assets) $ 329,431 14.07 % $ 187,303 8.00 % N/A N/A Tier 1 Capital (to Risk Weighted Assets) 271,739 11.61 % 140,477 6.00 % N/A N/A Common Equity Tier 1 Capital (to Risk Weighted Assets) 271,739 11.61 % 105,358 4.50 % N/A N/A Tier 1 Capital (to Average Assets) 2 271,739 8.70 % 125,002 4.00 % N/A N/A SmartBank: Total Capital (to Risk Weighted Assets) $ 317,660 13.57 % $ 187,294 8.00 % $ 234,117 10.00 % Tier 1 Capital (to Risk Weighted Assets) 299,314 12.78 % 140,470 6.00 % 187,294 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets) 299,314 12.78 % 105,353 4.50 % 152,176 6.50 % Tier 1 Capital (to Average Assets) 2 299,314 9.58 % 124,969 4.00 % 156,212 5.00 % December 31, 2019 SmartFinancial: Total Capital (to Risk Weighted Assets) $ 287,937 14.02 % $ 164,313 8.00 % N/A N/A Tier 1 Capital (to Risk Weighted Assets) 238,433 11.61 % 123,235 6.00 % N/A N/A Common Equity Tier 1 Capital (to Risk Weighted Assets) 238,433 11.61 % 92,426 4.50 % N/A N/A Tier 1 Capital (to Average Assets) 238,433 10.34 % 92,258 4.00 % N/A N/A SmartBank: Total Capital (to Risk Weighted Assets) $ 273,432 13.31 % $ 164,305 8.00 % $ 205,382 10.00 % Tier 1 Capital (to Risk Weighted Assets) 263,189 12.81 % 123,229 6.00 % 164,305 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets) 263,189 12.81 % 92,422 4.50 % 133,498 6.50 % Tier 1 Capital (to Average Assets) 263,189 11.41 % 92,254 4.00 % 115,317 5.00 % 1 The prompt corrective action provisions are applicable at the Bank level only. 2 Average assets for the above calculations were based on the most recent quarter. |
Concentrations of Credit Risk
Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Credit Risk | Note 16. Concentrations of Credit Risk The Company originates primarily commercial, residential, and consumer loans to customers in East and Middle Tennessee, Alabama, and the Florida panhandle. The ability of the majority of the Company’s customers to honor their contractual loan obligations is dependent on the economy in these areas. Seventy-two 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 51% of the loan portfolio at December 31, 2020, and 56% of the loan portfolio at December 31, 2019. Accordingly, the ultimate collectability of the loan portfolio and recovery of the carrying amount of other real estate owned 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 5. 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 $95.6 million. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | Note 17. 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 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 business 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 Level 2 - 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 - 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 methodologies were used by the Company in estimating fair value disclosures for financial instruments: Securities Available-for-Sale: Other Investments: Loans: Deposits: Securities Sold Under Agreement to Repurchase: Federal Home Loan Bank ("FHLB") Advances, Subordinated Debt and Other Borrowings: Derivative Financial Instruments Commitments to Extend Credit and Standby Letters of Credit: Measurements of Fair Value: The tables below present the recorded amount of assets and liabilities measured at fair value on a recurring basis are as follows (in thousands) Quoted Prices in Significant Significant Active Markets Other Other for Identical Observable Unobservable Assets Inputs Inputs Description Fair Value (Level 1) (Level 2) (Level 3) December 31, 2020: Assets: Securities available-for-sale: U.S. Government-sponsored enterprises (GSEs) $ 30,530 $ — $ 30,530 $ — Municipal securities 91,989 — 91,989 — Other debt securities 25,118 — 25,118 — Mortgage-backed securities (GSEs) 67,997 — 67,997 — Total securities available-for-sale $ 215,634 $ — $ 215,634 $ — Liabilities: Derivative financial instruments $ 6,174 $ — $ 6,174 $ — December 31, 2019: Assets: Securities available-for-sale: U.S. Government-sponsored enterprises (GSEs) $ 19,000 $ — $ 19,000 $ — Municipal securities 64,391 — 64,391 — Other debt securities 3,470 — 3,470 — Mortgage-backed securities (GSEs) 91,487 — 91,487 — Total securities available-for-sale $ 178,348 $ — $ 178,348 $ — Liabilities: Derivative financial instruments $ 3,446 — $ 3,446 — 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) Quoted Prices in Significant Significant Active Markets Other Other for Identical Observable Unobservable Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) December 31, 2020: Impaired loans $ 2,455 $ — $ — $ 2,455 Other real estate owned 4,619 — — 4,619 December 31, 2019: Impaired loans $ 2,185 $ — $ — $ 2,185 Other real estate owned 1,757 — — 1,757 For Level 3 assets measured at fair value on a non-recurring basis, the significant unobservable inputs used in the fair value measurements are presented below (dollars in thousands) Weighted Valuation Significant Other Average of Fair Value Technique Unobservable Input Input December 31, 2020: Impaired loans $ 2,455 Appraisal Appraisal discounts 9 % Other real estate owned 4,619 Appraisal Appraisal discounts 22 % December 31, 2019: Impaired loans $ 2,185 Appraisal Appraisal discounts 22 % Other real estate owned 1,757 Appraisal Appraisal discounts 29 % Impaired loans: Receivables Other real estate owned: 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 are as follows (in thousands) Fair Value Measurements Using Carrying Estimated Amount Level 1 Level 2 Level 3 Fair Value December 31, 2020: Assets: Cash and cash equivalents $ 481,719 $ 481,719 $ — $ — $ 481,719 Securities available-for-sale 215,634 — 215,634 — 215,634 Other investments 14,794 N/A N/A N/A N/A Loans, net and loans held for sale 2,375,618 — — 2,377,581 2,377,581 Liabilities: Noninterest-bearing demand deposits 685,957 — 685,957 — 685,957 Interest-bearing demand deposits 649,129 — 649,129 — 649,129 Money market and savings deposits 919,631 — 919,631 — 919,631 Time deposits 550,498 — 554,120 — 554,120 Borrowings 81,199 — 82,892 — 82,892 Subordinated debt 39,346 — — 40,550 40,550 Derivative financial instruments 6,174 — 6,174 — 6,174 December 31, 2019: Assets: Cash and cash equivalents $ 183,971 $ 183,971 $ — $ — $ 183,971 Securities available-for-sale 178,348 — 178,348 — 178,348 Other investments 12,913 N/A N/A N/A N/A Loans, net and loans held for sale 1,893,005 — — 1,879,825 1,879,825 Liabilities: Noninterest-bearing demand deposits 364,155 — 364,155 — 364,155 Interest-bearing demand deposits 380,234 — 380,234 — 380,234 Money market and savings deposits 623,284 — 623,284 — 623,284 Time deposits 679,541 — 681,902 — 681,902 Borrowings 31,623 — 31,029 — 31,029 Subordinated debt 39,261 — — 35,868 35,868 Derivative financial instruments 3,446 — 3,446 — 3,446 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. 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 unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Note 18. Derivatives Financial derivatives are reported at fair value in other assets or other liabilities. The accounting for changes in the fair value of a derivative depends on whether it has been designated and qualifies as part of a hedging relationship. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative net investment hedge instrument as well as the offsetting gain or loss on the hedged asset or liability attributable to the hedged risk are recognized in current earnings. The gain or loss on the derivative instrument is presented on the same income statement line item as the earnings effect of the hedged item. The Company utilizes interest rate swaps designated as fair value hedges to mitigate the effect of changing interest rates on the fair values of fixed rate tax-exempt callable securities available-for-sale. The hedging strategy on securities converts the fixed interest rates to LIBOR-based variable interest rates. These derivatives are designated as partial term hedges of selected cash flows covering specified periods of time prior to the call dates of the hedged securities. The Company has elected early adoption of ASU 2017-12, Derivatives and Hedging (Topic 815) - Targeted Improvements to Accounting for Hedging Activities A summary of the Company’s fair value hedge relationships for the periods presented are as follows (dollars in thousands) Weighted Average Balance Remaining Weighted Sheet Maturity Average Receive Notional Estimated Liability derivatives Location (In Years) Pay Rate Rate Amount Fair Value December 31, 2020: Interest rate swap agreements - securities Other liabilities 7.13 3.08 % 3 month LIBOR $ 36,000 $ (6,174) December 31, 2019: Interest rate swap agreements - securities Other liabilities 8.20 3.09 % 3 month LIBOR $ 36,000 $ (3,446) The effects of the Company’s fair value hedge relationships reported in interest income on tax-exempt available-for-sale securities on the consolidated income statement were as follows (in thousands) Year Ended December 31, 2020 2019 Interest income on tax-exempt securities $ 2,150 $ 1,741 Effects of fair value hedge relationships (781) (223) Reported interest income on tax-exempt securities $ 1,369 $ 1,518 Year Ended December 31, Gain (loss) on fair value hedging relationship 2020 2019 Interest rate swap agreements - securities: Hedged items $ (6,174) $ (3,446) Derivative designated as hedging instruments $ 6,174 $ 3,446 The following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges at December 31, 2020 and 2019 (in thousands) Cumulative Amount of Fair Value Hedging Adjustment Carrying Amount Included in Other Comprehensive Line item on the balance sheet of the Hedged Assets Income December 31, 2020: Securities available-for-sale $ 44,017 $ (1,063) December 31, 2019: Securities available-for-sale $ 42,710 $ (302) |
Other comprehensive income (los
Other comprehensive income (loss) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Other comprehensive income (loss) | Note 19. Other Comprehensive Income (Loss) The changes in each component of accumulated other comprehensive income (loss), net of tax, were as follows (in thousands) Year Ended December 31, 2020 Accumulated Securities Fair Value Other Available-for- Municipal Comprehensive Sale Security Hedges Income (Loss) Beginning balance, December 31, 2019 $ 391 $ (223) $ 168 Other comprehensive income (loss) 2,581 (562) 2,019 Reclassification of amounts included in net income (4) — (4) Net other comprehensive income (loss) during period 2,577 (562) 2,015 Ending balance, December 31, 2020 $ 2,968 $ (785) $ 2,183 Year Ended December 31, 2019 Accumulated Securities Fair Value Other Available-for- Municipal Comprehensive Sale Security Hedges Income (Loss) Beginning balance, December 31, 2018 $ (1,979) $ (786) $ (2,765) Other comprehensive income (loss) 2,395 563 2,958 Reclassification of amounts included in net income (25) — (25) Net other comprehensive income (loss) during period 2,370 563 2,933 Ending balance, December 31, 2019 $ 391 $ (223) $ 168 |
Condensed Parent Information
Condensed Parent Information | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Parent Information | Note 20. Condensed Parent Information CONDENSED BALANCE SHEETS December 31, 2020 and 2019 (Dollars in thousands) 2020 2019 ASSETS: Cash $ 8,062 $ 13,155 Investment in subsidiaries 384,743 337,503 Other assets 4,413 1,996 Total assets $ 397,218 $ 352,654 LIABILITIES AND SHAREHOLDERS’ EQUITY: Other liabilities $ 704 $ 646 Other borrowings 39,346 39,261 Total liabilities 40,050 39,907 Shareholders’ equity 357,168 312,747 Total liabilities and shareholders’ equity $ 397,218 $ 352,654 CONDENSED STATEMENTS OF INCOME Years ended December 31, 2020 and 2019 (Dollars in thousands) 2020 2019 INCOME: Interest income $ — $ — Merger termination fee — 6,400 Total income — 6,400 EXPENSES: Interest expense 2,334 2,341 Other operating expenses 1,625 2,755 Total expense 3,959 5,096 Income (loss) before equity in undistributed earnings of subsidiaries and income tax benefit (3,959) 1,304 Income tax benefit (expense) 908 (389) Income before equity in undistributed net income of subsidiaries (3,051) 915 Equity in undistributed earnings of subsidiaries 27,383 25,633 Net income $ 24,332 $ 26,548 STATEMENTS OF CASH FLOWS For the years ended December 31, 2020 and 2019 (Dollars in thousands) 2020 2019 Cash flows from operating activities: Net income $ 24,332 $ 26,548 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Equity in undistributed income of subsidiary (27,383) (25,633) Other assets (2,417) (1,894) Other liabilities 143 712 Net cash used in operating activities (5,325) (267) Cash flows from investing activities: Net cash paid for business combinations (6,713) — Equity contribution from subsidiary 13,900 — Net cash used in investing activities 7,187 — Cash flows from financing activities: Issuance of common stock 339 438 Cash dividends paid (2,986) (700) Repurchase of common stock (4,308) — Net cash (used) provided by financing activities (6,955) (262) Net change in cash and cash equivalents (5,093) (529) Cash and cash equivalents, beginning of year 13,155 13,684 Cash and cash equivalents, end of period $ 8,062 $ 13,155 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
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 East and Middle Tennessee, Alabama and Florida panhandle. The Company’s primary deposit products are interest-bearing demand deposits, savings and money market deposits, and time deposits. Its primary lending products are commercial, residential, and consumer loans. |
Basis of Presentation | Basis of Presentation: The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Accounting Estimates | Accounting Estimates: 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 other real estate owned and deferred taxes, other than temporary impairments of securities, the fair value of financial instruments, goodwill, and business combination elements (Day 1 and Day 2 Valuation). |
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 in cash or on deposit Bank is required to maintain average balances with the Federal Reserve Bank. During 2020 the Federal Reserve Bank suspended reserve requirements to provide relief related to the COVID-19 pandemic, thus the Bank did not have a reserve requirement at December 31, 2020. The reserve requirement was $49.2 million at December 31, 2019. |
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 income. 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 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 income. 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. |
Other Investments | Other 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 restricted investments for impairment based on the ultimate recoverability of the cost basis in these stocks. |
Loans Held for Sale | Loans Held for Sale: Loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or estimated fair value. Gains and losses on sales of loans held for sale are included in the Consolidated Statements of Income in mortgage banking. Loans held for sale are sold to investors with best effort intent and ability to sell loans as long as they meet the underwriting standards of the potential investor. |
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 the contractual terms of the obligation 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 significant 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 PCI 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. 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 at the time of purchase. 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. 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 according to policy, 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. |
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. |
Other Real Estate Owned | Other Real Estate Owned: Other real estate owned 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 less cost to sell, at the time of transfer to other real estate owned 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 other real estate owned and subsequent write-downs to the value are expensed. The amount of residential real estate where physical possession had been obtained included with in other real estate owned assets at December 31, 2020 and 2019 was $26 thousand and $215 thousand, respectively. There were five residential real estate loans totaling $384 thousand in process of foreclosure at December 31, 2020 and none at December 31, 2019. |
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. |
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. Other acquired intangible assets with finite lives, such as core deposit intangibles, are initially recorded at fair value and amortized over their estimated useful lives. Intangible assets are evaluated for impairment when events or changes in circumstances indicate a potential impairment accelerated basis typically between five |
Transfers of Financial Assets | Transfers of Financial Assets: Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company - put presumptively beyond 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. |
Derivative Instruments | Derivative Instruments: The Company applies hedge accounting to certain interest rate derivatives entered into for risk management purposes. In accordance with ASC Topic 815, Derivatives and Hedging, all derivative instruments are recorded on the accompanying consolidated balance sheet at their respective fair values. The accounting for changes in fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship. If the derivative instrument is not designated as a hedge, changes in the fair value of the derivative instrument are recognized in earnings in the period of change. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative instrument as well as the offsetting loss or gain on the hedged asset or liability attributable to the hedged risk are recognized in current earnings. The gain or loss on the derivative instrument is presented on the same income statement line item as the earnings effect of the hedged item. Revenue Recognition Service charges on deposit accounts Investment services Insurance commissions Interchange and debit card transaction fees, net Other |
Revenue Recognition | Revenue Recognition Service charges on deposit accounts Investment services Insurance commissions Interchange and debit card transaction fees, net Other |
Advertising Costs | Advertising Costs: The Company expenses all advertising and marketing costs as incurred. |
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. 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. |
Stock-Based Compensation Plans | Stock-Based Compensation Plans: The Company has stock options, restricted stock awards and stock appreciation rights under stock-based compensation plans, which are described in more detail in Note 13-Employee Benefits. The plans have been accounted for under the accounting guidance (FASB ASC 718, Compensation Stock Compensation) 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. |
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 (1) unrealized gains and losses on available-for-sale securities and (2) unrealized gains and losses on effective portions of fair value security hedges, 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. |
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 is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding. Diluted earnings per common 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. |
Operating Segments | Operating Segments: The Company’s chief operating decision maker primarily manages operations and assesses financial performance on a Company-wide basis. However, in addition to the discrete financial information that is provided for the Company as a whole, financial information is also provided for the wealth management services, insurance services and mortgage origination segments, respectively. While the chief operating decision maker uses the financial information related to these segments to analyze business performance and allocate resources, these segments do not meet the quantitative threshold under GAAP to be considered a reportable segment. As such, these operating segments, along with the banking operations segment, are aggregated into a single reportable operating segment in the Consolidated Financial Statements. No revenues are derived from foreign countries or from external customers that comprise more than 10% of the Company’s revenues. |
Recently Issued Not Yet Effective Accounting Pronouncements | 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 October 2019, the Financial Accounting Standards Board approved a delay for the implementation of ASU 2016-13, Financial Instruments - Credit Losses In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) In March 2020, the FASB issued ASU 2020-04 , Reference Rate Reform (Topic 848): Recently Issued and Adopted Accounting Pronouncements: As of January 1, 2020, the Company adopted ASU 2019-01, Leases: Codification Improvements and liabilities on the balance sheet and disclosing essential information about leasing transactions. Specifically, ASU 2019-01 (i) allows the fair value of the underlying asset reported by lessors that are not manufacturers or dealers to continue to be its cost and not fair value as measured under the fair value definition, (ii) allows for the cash flows received for sales-type and direct financing leases to continue to be presented as results from investing, and (iii) clarifies that entities do not have to disclose the effect of the lease standard on adoption year interim amounts. The adoption of ASU 2019-01 did not have a material impact on the Company’s consolidated financial statements. As of January 1, 2020, the Company adopted ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In August 2020, the SEC issued amendments to its disclosure rules to modernize the requirements in Regulation S-K, Item 101 on description of a business, Item 103 on legal proceedings, and Item 105 on risk factors. These amendments are intended to improve the readability of disclosures, reduce repetition, and eliminate immaterial information, thereby simplifying compliance for registrants and making disclosures more meaningful for investors. The amendments to the disclosure requirements related to a registrant’s description of its business and risk factors are intended to expand the use of a principles-based approach that gives registrants more flexibility to tailor disclosures. The amendments to the disclosure requirements related to legal proceedings continue to reflect the current, more prescriptive approach because those requirements depend less on a registrant’s specific characteristics. Further, additional human capital disclosures are required as part of the amendments to the description of the business. The final rule was effective on November 9, 2020, and the Company has incorporated the applicable changes as part of our annual filing on this Form 10-K. |
Operating, Accounting and Reporting Considerations related to COVID-19 | Operating, Accounting and Reporting Considerations related to COVID-19: The COVID-19 pandemic has negatively impacted the global economy. In response to this crisis, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was passed by Congress and signed into law on March 27, 2020. The CARES Act provides an estimated $2.2 trillion to stimulate the economy by supporting individuals and businesses through loans, grants, tax changes, and other types of relief through the COVID-19 pandemic. Some of the provisions applicable to the Company include, but are not limited to: ● Accounting for Loan Modifications – Section 4013 of the CARES Act provides that a financial institution may elect to suspend (1) the requirements under GAAP for certain loan modifications that would otherwise be categorized as a TDR and (2) any determination that such loan modifications would be considered a TDR, including the related impairment for accounting purposes . See Note 5 Loans and Allowance for Loan Losses for more information. ● Paycheck Protection Program - The CARES Act established the Paycheck Protection Program (“PPP”), an expansion of the Small Business Administration’s (“SBA”) 7(a) loan program and the Economic Injury Disaster Loan Program (“EIDL”), administered directly by the SBA. The Company is a participant in the PPP. See Note 5 Loans and Allowance for Loan Losses for more information. ● Mortgage Forbearance - Under the CARES Act, through the earlier of December 31, 2020, or the termination date of the COVID-19 national emergency, a borrower with a federally backed mortgage loan that is experiencing financial hardship due to COVID-19 may request a forbearance. A multifamily borrower with a federally backed multifamily mortgage loan that was current as of February 1, 2020, and is experiencing financial hardship due to COVID-19 may request forbearance on the loan for up to 30 days, with up to two additional 30-day periods at the borrower’s request. Also in response to the COVID-19 pandemic, the Board of Governors of the Federal Reserve System (“FRB”), the Federal Deposit Insurance Corporation (“FDIC”), the National Credit Union Administration (“NCUA”), the Office of the Comptroller of the Currency (“OCC”), and the Consumer Financial Protection Bureau (“CFPB”), in consultation with the state financial regulators (collectively, the “agencies”) issued a joint interagency statement (issued March 22, 2020; revised statement issued April 7, 2020). Some of the provisions applicable to the Company include, but are not limited to: ● Accounting for Loan Modifications - Loan modifications that do not meet the conditions of the CARES Act may still qualify as a modification that does not need to be accounted for as a TDR. The agencies confirmed with FASB staff that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not TDRs. This includes short-term (e.g., six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or insignificant delays in payment. See Note 5 Loans and Allowance for Loan Losses for more information. ● Past Due Reporting - With regard to loans not otherwise reportable as past due, financial institutions are not expected to designate loans with deferrals granted due to COVID-19 as past due because of the deferral. A loan’s payment date is governed by the due date stipulated in the legal agreement. If a financial institution agrees to a payment deferral, these loans would not be considered past due during the period of the deferral. ● Nonaccrual Status and Charge-offs - During short-term COVID-19 modifications, these loans generally should not be reported as nonaccrual or as classified. The Company began offering short-term loan modifications to assist borrowers during the COVID-19 national emergency. The Company offered deferral options of: 1) three months deferral of payment and then three months of interest only, 2) three months of interest only, 3) three months deferral of payment, 4) six months of interest only. These modifications generally meet the criteria of both Section 4013 of the CARES Act and the joint interagency statement, and therefore, the Company does not account for such loan modifications as TDRs. On August 3, 2020, the Federal Financial Institutions Examination Council on behalf of its members (collectively “the FFIEC members”) issued a joint statement on additional loan accommodations related to COVID-19. The joint statement clarifies that for loan modifications in which Section 4013 is being applied, subsequent modifications could also be eligible under Section 4013. To be eligible, each loan modification must be (1) related to the COVID event; (2) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (A) 60 days after the date of termination of the National Emergency or (B) December 31, 2020. All of the Company’s loan modifications granted under Section 4013 of the CARES Act are in compliance with the aforementioned FFIEC requirements. Accordingly, the Company does not account for such loan modifications as TDRs. |
Reclassifications | Reclassifications : Certain captions and amounts in the 2019 consolidated financial statements were reclassified to conform to the 2020 presentation. Such reclassifications had no effect on net income and shareholders’ equity, as previously reported. |
Business Combinations (Tables)
Business Combinations (Tables) - Progressive Financial Group Inc. [Member] | 12 Months Ended |
Dec. 31, 2020 | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions | Initial As recorded Fair value Subsequent As recorded by PFG adjustments Adjustments by the Company Assets: Cash & cash equivalents $ 55,971 $ — $ — $ 55,971 Investment securities available-for-sale 27,054 203 — 27,257 Restricted investments 692 — — 692 Loans 191,672 (3,691) — 187,981 Allowance for loan losses (2,832) 2,832 — — Premises and equipment, net 15,681 (2,919) — 12,762 Bank owned life insurance 5,560 — — 5,560 Deferred tax asset, net — 813 78 891 Intangibles — 1,370 1,127 2,497 Other real estate owned 3,695 (100) (1,424) 2,171 Interest Receivable 1,061 (280) — 781 Prepaids 375 (174) — 201 Goodwill 231 (231) — — Other assets 1,881 — — 1,881 Total assets acquired $ 301,041 $ (2,177) $ (219) $ 298,645 Liabilities: Deposits $ 271,276 $ — — $ 271,276 Time deposit premium — 729 — 729 Payables and other liabilities 776 — — 776 Total liabilities assumed 272,052 729 — 272,781 Excess of assets assumed over liabilities assumed $ 28,989 Aggregate fair value adjustments $ (2,906) $ (219) Total identifiable net assets 25,864 Consideration transferred: Cash 9,838 Common stock issued ( 24,547 Total fair value of consideration transferred 34,385 Goodwill $ 8,521 |
Loans Acquired in Acquisition | March 1, 2020 Accounted for pursuant to ASC 310-30: Contractually required principal and interest $ 21,107 Non-accretable differences 4,706 Cash flows expected to be collected 16,401 Accretable yield 2,515 Fair value $ 13,886 |
Business Acquisition, Pro Forma Information | Year Ended December 31, Revenue Net Income 2020: Actual PFG results included in statement of income since acquisition date $ 10,227 $ 3,581 Supplemental consolidation pro-forma as if PFG had been acquired January 1, 2019 119,334 27,436 2019: Supplemental consolidation pro-forma as if PFG had been acquired January 1, 2019 $ 115,479 $ 27,952 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | 2020 2019 Basic earnings per share computation: Net income available to common stockholders $ 24,332 $ 26,548 Average common shares outstanding – basic 14,955,423 13,953,497 Basic earnings per share $ 1.63 $ 1.90 Diluted earnings per share computation: Net income available to common stockholders $ 24,332 $ 26,548 Average common shares outstanding – basic 14,955,423 13,953,497 Incremental shares from assumed conversions: Stock options and restricted stock 63,752 92,869 Average common shares outstanding - diluted 15,019,175 14,046,366 Diluted earnings per common share $ 1.62 $ 1.89 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 December 31, 2020 and 2019 are summarized as follow (in thousands) December 31, 2020 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. Government-sponsored enterprises (GSEs) $ 30,526 $ 10 $ (6) $ 30,530 Municipal securities 89,644 2,345 — 91,989 Other debt securities 25,019 112 (13) 25,118 Mortgage-backed securities (GSEs) 66,425 1,754 (182) 67,997 Total $ 211,614 $ 4,221 $ (201) $ 215,634 December 31, 2019 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. Government-sponsored enterprises (GSEs) $ 19,015 $ 41 $ (56) $ 19,000 Municipal securities 63,792 618 (19) 64,391 Other debt securities 3,481 22 (33) 3,470 Mortgage-backed securities (GSEs) 91,531 382 (426) 91,487 Total $ 177,819 $ 1,063 $ (534) $ 178,348 |
Proceeds from sale of securities available for sale, gains losses and proceeds from redemption | Proceeds from sale and maturities and calls of securities available for sale, gross gains and gross losses were as follows (in thousands) Year Ended December 31, 2020 2019 Proceeds from sales $ 11,759 $ 16,515 Gross gains $ 7 $ 35 Gross losses $ (1) $ (1) Proceeds from maturities and calls $ 49,633 $ 15,555 |
Investments Classified by Contractual Maturity Date | December 31, 2020 Amortized Fair Cost Value Due in one year or less $ 4,907 $ 4,949 Due from one year to five years 4,159 4,174 Due from five years to ten years 36,172 36,442 Due after ten years 99,951 102,072 145,189 147,637 Mortgage-backed securities 66,425 67,997 Total $ 211,614 $ 215,634 |
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 December 31, 2020 and 2019 (in thousands) As of December 31, 2020 Less than 12 Months 12 Months or Greater Total Gross Number Gross Number Gross Number Fair Unrealized of Fair Unrealized of Fair Unrealized of Value Losses Securities Value Losses Securities Value Losses Securities U.S. Government-sponsored enterprises (GSEs) $ 15,510 $ (5) 3 $ 132 $ (1) 1 $ 15,642 $ (6) 4 Municipal securities — — — — — — — — — Other debt securities 1,495 (5) 1 977 (8) 1 2,472 (13) 2 Mortgage-backed securities (GSEs) 9,790 (87) 6 6,083 (95) 3 15,873 (182) 9 Total $ 26,795 $ (97) 10 $ 7,192 $ (104) 5 $ 33,987 $ (201) 15 As of December 31, 2019 Less than 12 Months 12 Months or Greater Total Gross Number Gross Number Gross Number Fair Unrealized of Fair Unrealized of Fair Unrealized of Value Losses Securities Value Losses Securities Value Losses Securities U.S. Government-sponsored enterprises (GSEs) $ 2,972 $ (43) 2 $ 5,987 $ (13) 2 $ 8,959 $ (56) 4 Municipal securities 3,656 (16) 4 527 (3) 1 4,183 (19) 5 Other debt securities — — — 947 (33) 1 947 (33) 1 Mortgage-backed securities (GSEs) 13,208 (194) 10 19,988 (232) 31 33,196 (426) 41 Total $ 19,836 $ (253) 16 $ 27,449 $ (281) 35 $ 47,285 $ (534) 51 |
Schedule of Other Investments | The following is the amortized cost and carrying value of other investments (in thousands) December 31, December 31, 2020 2019 Federal Reserve Bank stock $ 8,606 $ 7,917 Federal Home Loan Bank stock 5,838 4,646 First National Bankers Bank stock 350 350 Total $ 14,794 $ 12,913 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Receivables [Abstract] | ||
Schedule of Loans | Major categories of loans are summarized as follows (in thousands) December 31, 2020 December 31, 2019 PCI All Other PCI All Other Loans Loans Total Loans Loans Total Commercial real estate $ 16,123 $ 996,853 $ 1,012,976 $ 15,255 $ 890,051 $ 905,306 Consumer real estate 10,258 433,672 443,930 6,541 410,941 417,482 Construction and land development 5,348 272,727 278,075 4,458 223,168 227,626 Commercial and industrial 308 634,138 634,446 407 336,668 337,075 Consumer and other 27 12,789 12,816 326 9,577 9,903 Total loans 32,064 2,350,179 2,382,243 26,987 1,870,405 1,897,392 Less: Allowance for loan losses (309) (18,037) (18,346) (156) (10,087) (10,243) Loans, net $ 31,755 $ 2,332,142 $ 2,363,897 $ 26,831 $ 1,860,318 $ 1,887,149 | |
Schedule of Impaired and Performing Loans Receivable | The composition of loans by loan classification for impaired and performing loan status is summarized in the tables below (in thousands) Construction Commercial Commercial Consumer and Land and Consumer Real Estate Real Estate Development Industrial and Other Total December 31, 2020: Performing loans $ 992,982 $ 432,356 $ 272,727 $ 633,992 $ 12,789 $ 2,344,846 Impaired loans 3,871 1,316 — 146 — 5,333 996,853 433,672 272,727 634,138 12,789 2,350,179 PCI loans 16,123 10,258 5,348 308 27 32,064 Total loans $ 1,012,976 $ 443,930 $ 278,075 $ 634,446 $ 12,816 $ 2,382,243 December 31, 2019: Performing loans $ 889,795 $ 409,394 $ 222,621 $ 336,508 $ 9,577 $ 1,867,895 Impaired loans 256 1,547 547 160 — 2,510 890,051 410,941 223,168 336,668 9,577 1,870,405 PCI loans 15,255 6,541 4,458 407 326 26,987 Total loans $ 905,306 $ 417,482 $ 227,626 $ 337,075 $ 9,903 $ 1,897,392 | |
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 (in thousands) Construction Commercial Consumer Commercial Consumer and Land and and Real Estate Real Estate Development Industrial Other Total December 31, 2020: Performing loans $ 7,579 $ 3,267 $ 2,076 $ 4,768 $ 110 $ 17,800 Impaired loans — 116 — 121 — 237 7,579 3,383 2,076 4,889 110 18,037 PCI loans — 88 — 218 3 309 Total loans $ 7,579 $ 3,471 $ 2,076 $ 5,107 $ 113 $ 18,346 December 31, 2019: Performing loans $ 4,491 $ 2,159 $ 1,127 $ 1,766 $ 69 $ 9,612 Impaired loans — 343 — 132 — 475 4,491 2,502 1,127 1,898 69 10,087 PCI loans 17 74 — 59 6 156 Total loans $ 4,508 $ 2,576 $ 1,127 $ 1,957 $ 75 $ 10,243 | |
Schedule of Allowance for Loan Losses | The following tables detail the changes in the allowance for loan losses by loan classification (in thousands) Year Ended December 31, 2020 Consumer Construction Commercial Commercial Real and Land and Consumer Real Estate Estate Development Industrial and Other Total Beginning balance $ 4,508 $ 2,576 $ 1,127 $ 1,957 $ 75 $ 10,243 Loans charged-off — (23) — (420) (398) (841) Recoveries of loans charged-off 19 39 2 114 87 261 Provision charged to expense 3,052 879 947 3,456 349 8,683 Ending balance $ 7,579 $ 3,471 $ 2,076 $ 5,107 $ 113 $ 18,346 Year Ended December 31, 2019 Consumer Construction Commercial Commercial Real and Land and Consumer Real Estate Estate Development Industrial and Other Total Beginning balance $ 3,639 $ 1,789 $ 795 $ 1,746 $ 306 $ 8,275 Loans charged-off (36) (4) — (659) (344) (1,043) Recoveries of loans charged-off 65 164 8 77 98 412 Provision charged to expense 840 627 324 793 15 2,599 Ending balance $ 4,508 $ 2,576 $ 1,127 $ 1,957 $ 75 $ 10,243 | |
Loan Credit Quality Indicators | The following tables outline the amount of each loan classification and the amount categorized into each risk rating (in thousands) December 31, 2020 Construction Commercial Commercial Consumer and Land and Consumer Non PCI Loans: Real Estate Real Estate Development Industrial and Other Total Pass $ 922,153 $ 417,302 $ 269,350 $ 625,836 $ 12,622 $ 2,247,263 Watch 66,287 14,218 3,296 7,673 137 91,611 Special mention 4,446 46 — 320 — 4,812 Substandard 3,967 2,020 81 261 30 6,359 Doubtful — 86 — 48 — 134 Total 996,853 433,672 272,727 634,138 12,789 2,350,179 PCI Loans: Pass 11,072 8,382 1,008 262 25 20,749 Watch 3,381 224 3,820 — 2 7,427 Special mention 19 57 — — — 76 Substandard 1,651 1,595 520 46 — 3,812 Doubtful — — — — — — Total 16,123 10,258 5,348 308 27 32,064 Total loans $ 1,012,976 $ 443,930 $ 278,075 $ 634,446 $ 12,816 $ 2,382,243 December 31, 2019 Construction Commercial Commercial Consumer and Land and Consumer Non PCI Loans: Real Estate Real Estate Development Industrial and Other Total Pass $ 860,447 $ 407,336 $ 216,459 $ 328,564 $ 9,462 $ 1,822,268 Watch 25,180 989 6,089 6,786 40 39,084 Special mention 4,057 738 — 1,033 — 5,828 Substandard 367 1,713 620 228 51 2,979 Doubtful — 165 — 57 24 246 Total 890,051 410,941 223,168 336,668 9,577 1,870,405 PCI Loans: Pass 12,473 5,258 902 41 300 18,974 Watch 2,234 38 3,556 — 13 5,841 Special mention 139 60 — — — 199 Substandard 409 1,185 — 366 13 1,973 Doubtful — — — — — — Total 15,255 6,541 4,458 407 326 26,987 Total loans $ 905,306 $ 417,482 $ 227,626 $ 337,075 $ 9,903 $ 1,897,392 | |
Past Due Loans and Leases | The following tables present an aging analysis of our loan portfolio (in thousands) December 31, 2020 30-60 Days 61-89 Days Past Due 90 Total Past Due and Past Due and Days or More Past Due and PCI Current Total Accruing Accruing and Accruing Nonaccrual Nonaccrual Loans Loans Loans Commercial real estate $ 134 $ — $ 67 $ 3,740 $ 3,941 $ 16,123 $ 992,912 $ 1,012,976 Consumer real estate 1,916 51 82 1,823 3,872 10,258 429,800 443,930 Construction and land development 245 — — 12 257 5,348 272,470 278,075 Commercial and industrial 12 76 — 36 124 308 634,014 634,446 Consumer and other 14 5 — 22 41 27 12,748 12,816 Total $ 2,321 $ 132 $ 149 $ 5,633 $ 8,235 $ 32,064 $ 2,341,944 $ 2,382,243 December 31, 2019 30-60 Days 61-89 Days Past Due 90 Total Past Due and Past Due and Days or More Past Due and PCI Current Total Accruing Accruing and Accruing Nonaccrual Nonaccrual Loans Loans Loans Commercial real estate $ 466 $ 22 $ — $ 124 $ 612 $ 15,255 $ 889,439 $ 905,306 Consumer real estate 1,564 30 — 1,872 3,466 6,541 407,475 417,482 Construction and land development 507 — 607 620 1,734 4,458 221,434 227,626 Commercial and industrial 559 53 — 57 669 407 335,999 337,075 Consumer and other 86 14 — 70 170 326 9,407 9,903 Total $ 3,182 $ 119 $ 607 $ 2,743 $ 6,651 $ 26,987 $ 1,863,754 $ 1,897,392 | |
Impaired Loans | The following is an analysis of the impaired loan portfolio, including PCI loans, detailing the related allowance recorded (in thousands) December 31, 2020 December 31, 2019 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance Impaired loans without a valuation allowance: Commercial real estate $ 3,871 $ 3,872 $ — $ 256 $ 261 $ — Consumer real estate 888 888 — 553 553 — Construction and land development — — — 547 547 — Commercial and industrial — — — — — — Consumer and other — — — — — — 4,759 4,760 — 1,356 1,361 — Impaired loans with a valuation allowance: Commercial real estate — — — — — — Consumer real estate 428 428 116 994 994 343 Construction and land development — — — — — — Commercial and industrial 146 146 121 160 160 132 Consumer and other — — — — — — 574 574 237 1,154 1,154 475 PCI loans: Commercial real estate — — — 17 99 17 Consumer real estate 1,827 2,086 88 1,205 1,371 74 Construction and land development — — — — — — Commercial and industrial 270 234 218 396 534 59 Consumer and other 21 20 3 45 51 6 2,118 2,340 309 1,663 2,055 156 Total impaired loans $ 7,451 $ 7,674 $ 546 $ 4,173 $ 4,570 $ 631 December 31, 2020 December 31, 2019 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized Impaired loans without a valuation allowance: Commercial real estate $ 1,073 $ 12 $ 399 $ 30 Consumer real estate 701 33 725 15 Construction and land development 231 — 619 5 Commercial and industrial — — 20 1 Consumer and other — — 11 1 2,005 45 1,774 52 Impaired loans with a valuation allowance: Commercial real estate 158 2 9 1 Consumer real estate 656 24 397 17 Construction and land development — — 11 — Commercial and industrial 244 8 430 16 Consumer and other — — 23 — 1,058 34 870 34 PCI loans: Commercial real estate 200 1 1,518 (25) Consumer real estate 1,461 117 922 42 Construction and land development 46 — — — Commercial and industrial 321 7 79 9 Consumer and other 27 — 9 1 2,055 125 2,528 27 Total impaired loans $ 5,118 $ 204 $ 5,172 $ 113 | |
Troubled Debt Restructurings on Loans | The following table presents a summary of loans that were modified as troubled debt restructurings during the year ended December 31, 2020 (dollars in thousands) Pre-Modification Post-Modification Outstanding Outstanding Recorded Recorded December 31, 2020 Number of Contracts Investment Investment Consumer real estate 1 $ 108 $ 108 Commercial and industrial 3 141 141 Consumer other 1 8 8 | |
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 for the years ended December 31, are as follows (in thousands) 2020 2019 Commercial real estate $ 23,787 $ 21,570 Consumer real estate 12,692 8,411 Construction and land development 1,812 5,394 Commercial and industrial 6,521 2,540 Consumer and other 161 504 Total loans 44,973 38,419 Less: Remaining purchase discount (12,909) (11,432) Total loans, net of purchase discount 32,064 26,987 Less: Allowance for loan losses (309) (156) Carrying amount, net of allowance $ 31,755 $ 26,831 | |
Schedule of Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement | The following is a summary of the accretable yield on acquired loans for the years ended December 31, (in thousands) 2020 2019 Accretable yield, beginning of period $ 8,454 $ 7,052 Additions 2,515 — Accretion income (5,347) (4,627) Reclassification 2,792 3,555 Other changes, net 8,475 2,474 Accretable yield, end of period $ 16,889 $ 8,454 | |
Schedule of Loan to Directors, Officers and Affiliated Parties | 2020 2019 Balance, beginning of year $ 24,091 $ 31,246 Disbursements 7,108 16,297 Repayments (16,740) (23,452) Balance, end of year $ 14,459 $ 24,091 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Summary of Premises and Equipment | A summary of premises and equipment at December 31, is as follows (in thousands) Useful Life 2020 2019 Land and land improvements Indefinite $ 16,724 $ 14,712 Building and leasehold improvements 15-40 years 53,701 38,640 Furniture, fixtures and equipment 3-7 years 18,095 13,744 Construction in progress 964 5,523 Total, gross 89,484 72,619 Accumulated depreciation (16,802) (13,186) Total, net $ 72,682 $ 59,433 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | December 31, December 31, 2020 2019 Goodwill: Balance, beginning of period $ 65,614 $ 66,087 Adjustment to values initially recorded for Acquisition of Foothills Bancorp, Inc. — (473) Acquisition of PFG 8,521 — Balance, end of the period $ 74,135 $ 65,614 |
Finite-lived Intangible Assets Amortization Expense | Core Deposit Insurance Agency Insurance Agency Amortized other intangible assets: Intangibles Customer Relationships Tradename Total Beginning balance January 1, 2020 $ 14,550 $ - $ - $ 14,550 Acquisition of PFG 1,370 1,064 63 2,497 Balance, December 31, 2020, other intangible assets, gross 15,920 1,064 63 17,047 Less: accumulated amortization (4,540) (161) (10) (4,711) Balance, December 31, 2020, other intangible assets, net 11,380 903 53 12,336 Beginning balance January 1, 2019 $ 14,550 $ - $ - $ 14,550 Less: accumulated amortization (2,971) - - (2,971) Balance, December 31, 2019, other intangible assets, net 11,579 - - 11,579 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | 2021 $ 1,760 2022 1,697 2023 1,636 2024 1,588 2025 1,531 Thereafter 4,124 Total $ 12,336 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deposits [Abstract] | |
Scheduled Maturities Of Time Deposit | 2021 $ 389,097 2022 82,271 2023 44,957 2024 22,444 2025 10,906 Thereafter 487 Total $ 550,162 |
Borrowings and Line of Credit (
Borrowings and Line of Credit (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of Federal Home Loan Bank, Advances | 2020 2019 Long-term advance dated September 10, 2019, requiring monthly interest payments, fixed at 0.93%, with a put option exercisable on September 10, 2020 and then quarterly thereafter, principal due in September 2029. 1 $ 25,000 $ 25,000 Long-term advance dated February 28, 2020, requiring monthly interest payments, fixed at 0.46%, with a put option exercisable on February 26, 2021 and then quarterly thereafter, principal due in February 2030. 1 50,000 — Total $ 75,000 $ 25,000 1 |
Schedule of Maturities of Advances and Other Borrowings | 2021 $ 45 2022 47 2023 50 2024 52 2025 54 Thereafter 75,148 Total $ 75,396 |
Federal Reserve Bank | |
Schedule of funding capacity and loans secured for borrowings | At December 31, 2020 and 2019, the funding capacity and loans secured for borrowings was as follows (in thousands) 2020 2019 Maximum funding capacity $ 149,219 $ 6,994 Borrowings — — Additional funding capacity $ 149,219 $ 6,994 Loans secured for borrowings $ 258,774 $ 9,562 |
Federal Home Loan Bank Advances | |
Schedule of funding capacity and loans secured for borrowings | At December 31, 2020 and 2019, the borrowing capacity and loans secured for advances was as follows (in thousands) 2020 2019 Maximum borrowing capacity $ 194,445 $ 156,059 FHLB advances (75,000) (25,000) Secured lines of credit (83,982) (83,982) Additional borrowing capacity $ 35,463 $ 47,077 Loans secured for advances $ 281,670 $ 554,371 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Summary of Lease Assets and Liabilities | The following table represents the consolidated balance sheet classification of the Company’s ROU assets and lease liabilities. The Company elected not to include short-term leases (i.e., leases with initial terms of twelve months or less), or equipment leases (deemed immaterial) on the consolidated balance sheet (in thousands) December 31, December 31, Classification 2020 2019 Assets: Operating lease right-of-use assets Other assets $ 4,797 $ 5,470 Liabilities: Operating lease liabilities Other liabilities $ 4,827 $ 5,479 |
Summary of Lease Costs and Other Information | The Company elected, for all classes of underlying assets, not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance. The following table represents lease costs and other lease information for the years ended December 31, (in thousands) 2020 2019 Lease costs: Operating lease costs $ 1,044 $ 703 Short-term lease costs — 12 Variable lease costs 111 95 Total $ 1,155 $ 810 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,265 $ 693 |
Schedule of Remaining Minimum Lease Payments | Future minimum payments for operating leases with initial or remaining terms of one year or more as of December 31, 2020 were as follows (in thousands) Amounts 2021 $ 804 2022 623 2023 485 2024 366 2025 348 Thereafter 3,032 Total future minimum lease payments 5,658 Amounts representing interest (831) Present value of net future minimum lease payments $ 4,827 |
Income Taxes (Table)
Income Taxes (Table) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019, includes the following (in thousands) 2020 2019 Current tax expense Federal $ 6,330 $ 5,143 State 1,447 974 Deferred tax expense related to: Federal (991) 678 State (228) 102 Total income tax expense $ 6,558 $ 6,897 |
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 rate of 21%. The reasons for this difference are as follows (in thousands): 2020 2019 Federal income tax expense computed at the statutory rate $ 6,487 $ 7,024 State income taxes, net of federal tax benefit 923 872 Nondeductible acquisition expenses 109 — Tax-exempt interest (555) (469) Tax benefit from stock options (14) (24) Other (392) (506) Total income tax expense $ 6,558 $ 6,897 |
Schedule of Deferred Tax Assets and Liabilities | The components of the net deferred tax asset as of December 31, 2020 and 2019, were as follows (in thousands): 2020 2019 Deferred tax assets: Allowance for loan losses $ 4,744 $ 2,688 Fair value adjustments 3,854 4,098 Unrealized losses on securities — — Unrealized losses on hedges or derivative securities 278 79 Other real estate owned 523 25 Deferred compensation 1,103 976 Lease liability 1,248 1,438 Federal net operating loss carryforward — 221 Other 82 442 Total deferred tax assets 11,832 9,967 Deferred tax liabilities: Accumulated depreciation 1,374 1,610 Core deposit intangible 3,112 2,971 Right of use asset 1,240 1,435 Unrealized gains on available-for-sale securities 1,051 139 Other 663 332 Total deferred tax liabilities 7,440 6,487 Net deferred tax asset $ 4,392 $ 3,480 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Defined Benefit Plan [Abstract] | |
Schedule of Option Activity | A summary of the activity in these stock option plans is presented in the following table: Weighted Average Exercisable Number Price Outstanding at December 31, 2018 170,625 $ 10.61 Granted — — Exercised (31,931) 11.85 Forfeited (2,036) 12.20 Outstanding at December 31, 2019 136,658 10.29 Granted — — Exercised (33,556) 10.12 Forfeited (3,485) 15.05 Outstanding at December 31, 2020 99,617 10.19 |
Schedule of Options Outstanding by Exercise Price Range | Options Outstanding Options Exercisable Weighted- Average Weighted- Weighted- Remaining Average Average Exercise Number Contractual Exercise Number Exercise Prices Outstanding Life Price Exercisable Price $ 6.60 19,250 1.19 years $ 6.60 19,250 $ 6.60 6.80 11,250 0.16 years 6.80 11,250 6.80 9.48 18,500 2.19 years 9.48 18,500 9.48 9.60 21,750 2.99 years 9.60 21,750 9.60 11.76 2,266 1.50 years 11.76 2,266 11.76 15.05 26,601 4.57 years 15.05 26,601 15.05 Outstanding, end of period 99,617 2.57 years $ 10.19 99,617 $ 10.19 |
Schedule of Non-vested Restricted Stock Awards | Weighted Average Grant-Date Number Fair Value Balance at December 31, 2019 65,400 $ 21.04 Granted 43,613 15.95 Vested (7,295) 18.32 Forfeited/expired (1,500) 18.12 Balance at December 31, 2020 100,218 $ 19.07 |
Share-based Payment Arrangement, Stock Appreciation Right, Activity | Weighted Average Number Exercisable Price Outstanding at December 31, 2018 50,000 $ 21.64 Granted 21,000 18.12 Exercised — — Forfeited/Expired (4,000) 21.67 Outstanding at December 31, 2019 67,000 20.54 Granted 18,000 15.19 Exercised — — Forfeited/Expired (12,000) 21.72 Outstanding at December 31, 2020 73,000 $ 19.02 SARs Outstanding SARs Exercisable Weighted- Average Weighted- Remaining Average Weighted- Average Exercise Number Contractual Exercise Number Exercise Prices Outstanding Life Price Exercisable Price $ 15.19 18,000 3.00 years $ 15.19 — $ — 18.12 21,000 2.00 years 18.12 — — 21.61 34,000 1.00 years 21.61 — — Outstanding, end of period 73,000 1.78 years $ 19.02 — $ — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitments | A summary of the Company's total contractual amount for all off-balance sheet commitments for the years ended December 31, 2020 and 2019, are as follows (in thousands) 2020 2019 Commitments to extend credit $ 476,841 $ 384,411 Standby letters of credit 5,261 11,727 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Banking and Thrift [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | Actual and required capital levels at December 31, 2020 and 2019 are presented below (dollars in thousands) Minimum to be well capitalized under Minimum for prompt capital corrective action Actual adequacy purposes provisions 1 Amount Ratio Amount Ratio Amount Ratio December 31, 2020 SmartFinancial: Total Capital (to Risk Weighted Assets) $ 329,431 14.07 % $ 187,303 8.00 % N/A N/A Tier 1 Capital (to Risk Weighted Assets) 271,739 11.61 % 140,477 6.00 % N/A N/A Common Equity Tier 1 Capital (to Risk Weighted Assets) 271,739 11.61 % 105,358 4.50 % N/A N/A Tier 1 Capital (to Average Assets) 2 271,739 8.70 % 125,002 4.00 % N/A N/A SmartBank: Total Capital (to Risk Weighted Assets) $ 317,660 13.57 % $ 187,294 8.00 % $ 234,117 10.00 % Tier 1 Capital (to Risk Weighted Assets) 299,314 12.78 % 140,470 6.00 % 187,294 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets) 299,314 12.78 % 105,353 4.50 % 152,176 6.50 % Tier 1 Capital (to Average Assets) 2 299,314 9.58 % 124,969 4.00 % 156,212 5.00 % December 31, 2019 SmartFinancial: Total Capital (to Risk Weighted Assets) $ 287,937 14.02 % $ 164,313 8.00 % N/A N/A Tier 1 Capital (to Risk Weighted Assets) 238,433 11.61 % 123,235 6.00 % N/A N/A Common Equity Tier 1 Capital (to Risk Weighted Assets) 238,433 11.61 % 92,426 4.50 % N/A N/A Tier 1 Capital (to Average Assets) 238,433 10.34 % 92,258 4.00 % N/A N/A SmartBank: Total Capital (to Risk Weighted Assets) $ 273,432 13.31 % $ 164,305 8.00 % $ 205,382 10.00 % Tier 1 Capital (to Risk Weighted Assets) 263,189 12.81 % 123,229 6.00 % 164,305 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets) 263,189 12.81 % 92,422 4.50 % 133,498 6.50 % Tier 1 Capital (to Average Assets) 263,189 11.41 % 92,254 4.00 % 115,317 5.00 % 1 The prompt corrective action provisions are applicable at the Bank level only. 2 Average assets for the above calculations were based on the most recent quarter. |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The tables below present the recorded amount of assets and liabilities measured at fair value on a recurring basis are as follows (in thousands) Quoted Prices in Significant Significant Active Markets Other Other for Identical Observable Unobservable Assets Inputs Inputs Description Fair Value (Level 1) (Level 2) (Level 3) December 31, 2020: Assets: Securities available-for-sale: U.S. Government-sponsored enterprises (GSEs) $ 30,530 $ — $ 30,530 $ — Municipal securities 91,989 — 91,989 — Other debt securities 25,118 — 25,118 — Mortgage-backed securities (GSEs) 67,997 — 67,997 — Total securities available-for-sale $ 215,634 $ — $ 215,634 $ — Liabilities: Derivative financial instruments $ 6,174 $ — $ 6,174 $ — December 31, 2019: Assets: Securities available-for-sale: U.S. Government-sponsored enterprises (GSEs) $ 19,000 $ — $ 19,000 $ — Municipal securities 64,391 — 64,391 — Other debt securities 3,470 — 3,470 — Mortgage-backed securities (GSEs) 91,487 — 91,487 — Total securities available-for-sale $ 178,348 $ — $ 178,348 $ — Liabilities: Derivative financial instruments $ 3,446 — $ 3,446 — |
Fair Value, Assets and Liabilities Measured on 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) Quoted Prices in Significant Significant Active Markets Other Other for Identical Observable Unobservable Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) December 31, 2020: Impaired loans $ 2,455 $ — $ — $ 2,455 Other real estate owned 4,619 — — 4,619 December 31, 2019: Impaired loans $ 2,185 $ — $ — $ 2,185 Other real estate owned 1,757 — — 1,757 For Level 3 assets measured at fair value on a non-recurring basis, the significant unobservable inputs used in the fair value measurements are presented below (dollars in thousands) Weighted Valuation Significant Other Average of Fair Value Technique Unobservable Input Input December 31, 2020: Impaired loans $ 2,455 Appraisal Appraisal discounts 9 % Other real estate owned 4,619 Appraisal Appraisal discounts 22 % December 31, 2019: Impaired loans $ 2,185 Appraisal Appraisal discounts 22 % Other real estate owned 1,757 Appraisal Appraisal discounts 29 % |
Fair Value, by Balance Sheet Grouping | Fair Value Measurements Using Carrying Estimated Amount Level 1 Level 2 Level 3 Fair Value December 31, 2020: Assets: Cash and cash equivalents $ 481,719 $ 481,719 $ — $ — $ 481,719 Securities available-for-sale 215,634 — 215,634 — 215,634 Other investments 14,794 N/A N/A N/A N/A Loans, net and loans held for sale 2,375,618 — — 2,377,581 2,377,581 Liabilities: Noninterest-bearing demand deposits 685,957 — 685,957 — 685,957 Interest-bearing demand deposits 649,129 — 649,129 — 649,129 Money market and savings deposits 919,631 — 919,631 — 919,631 Time deposits 550,498 — 554,120 — 554,120 Borrowings 81,199 — 82,892 — 82,892 Subordinated debt 39,346 — — 40,550 40,550 Derivative financial instruments 6,174 — 6,174 — 6,174 December 31, 2019: Assets: Cash and cash equivalents $ 183,971 $ 183,971 $ — $ — $ 183,971 Securities available-for-sale 178,348 — 178,348 — 178,348 Other investments 12,913 N/A N/A N/A N/A Loans, net and loans held for sale 1,893,005 — — 1,879,825 1,879,825 Liabilities: Noninterest-bearing demand deposits 364,155 — 364,155 — 364,155 Interest-bearing demand deposits 380,234 — 380,234 — 380,234 Money market and savings deposits 623,284 — 623,284 — 623,284 Time deposits 679,541 — 681,902 — 681,902 Borrowings 31,623 — 31,029 — 31,029 Subordinated debt 39,261 — — 35,868 35,868 Derivative financial instruments 3,446 — 3,446 — 3,446 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value Hedge Relationships in Balance Sheet | A summary of the Company’s fair value hedge relationships for the periods presented are as follows (dollars in thousands) Weighted Average Balance Remaining Weighted Sheet Maturity Average Receive Notional Estimated Liability derivatives Location (In Years) Pay Rate Rate Amount Fair Value December 31, 2020: Interest rate swap agreements - securities Other liabilities 7.13 3.08 % 3 month LIBOR $ 36,000 $ (6,174) December 31, 2019: Interest rate swap agreements - securities Other liabilities 8.20 3.09 % 3 month LIBOR $ 36,000 $ (3,446) |
Schedule of Fair Value Hedge Relationships on Income Statement | The effects of the Company’s fair value hedge relationships reported in interest income on tax-exempt available-for-sale securities on the consolidated income statement were as follows (in thousands) Year Ended December 31, 2020 2019 Interest income on tax-exempt securities $ 2,150 $ 1,741 Effects of fair value hedge relationships (781) (223) Reported interest income on tax-exempt securities $ 1,369 $ 1,518 Year Ended December 31, Gain (loss) on fair value hedging relationship 2020 2019 Interest rate swap agreements - securities: Hedged items $ (6,174) $ (3,446) Derivative designated as hedging instruments $ 6,174 $ 3,446 |
Schedule of Fair Value Hedges | The following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges at December 31, 2020 and 2019 (in thousands) Cumulative Amount of Fair Value Hedging Adjustment Carrying Amount Included in Other Comprehensive Line item on the balance sheet of the Hedged Assets Income December 31, 2020: Securities available-for-sale $ 44,017 $ (1,063) December 31, 2019: Securities available-for-sale $ 42,710 $ (302) |
Other comprehensive income (l_2
Other comprehensive income (loss) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Summary of Accumulated Other Comprehensive Income (Loss) | Year Ended December 31, 2020 Accumulated Securities Fair Value Other Available-for- Municipal Comprehensive Sale Security Hedges Income (Loss) Beginning balance, December 31, 2019 $ 391 $ (223) $ 168 Other comprehensive income (loss) 2,581 (562) 2,019 Reclassification of amounts included in net income (4) — (4) Net other comprehensive income (loss) during period 2,577 (562) 2,015 Ending balance, December 31, 2020 $ 2,968 $ (785) $ 2,183 Year Ended December 31, 2019 Accumulated Securities Fair Value Other Available-for- Municipal Comprehensive Sale Security Hedges Income (Loss) Beginning balance, December 31, 2018 $ (1,979) $ (786) $ (2,765) Other comprehensive income (loss) 2,395 563 2,958 Reclassification of amounts included in net income (25) — (25) Net other comprehensive income (loss) during period 2,370 563 2,933 Ending balance, December 31, 2019 $ 391 $ (223) $ 168 |
Condensed Parent Information (T
Condensed Parent Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheet | CONDENSED BALANCE SHEETS December 31, 2020 and 2019 (Dollars in thousands) 2020 2019 ASSETS: Cash $ 8,062 $ 13,155 Investment in subsidiaries 384,743 337,503 Other assets 4,413 1,996 Total assets $ 397,218 $ 352,654 LIABILITIES AND SHAREHOLDERS’ EQUITY: Other liabilities $ 704 $ 646 Other borrowings 39,346 39,261 Total liabilities 40,050 39,907 Shareholders’ equity 357,168 312,747 Total liabilities and shareholders’ equity $ 397,218 $ 352,654 |
Condensed Income Statement | CONDENSED STATEMENTS OF INCOME Years ended December 31, 2020 and 2019 (Dollars in thousands) 2020 2019 INCOME: Interest income $ — $ — Merger termination fee — 6,400 Total income — 6,400 EXPENSES: Interest expense 2,334 2,341 Other operating expenses 1,625 2,755 Total expense 3,959 5,096 Income (loss) before equity in undistributed earnings of subsidiaries and income tax benefit (3,959) 1,304 Income tax benefit (expense) 908 (389) Income before equity in undistributed net income of subsidiaries (3,051) 915 Equity in undistributed earnings of subsidiaries 27,383 25,633 Net income $ 24,332 $ 26,548 |
Condensed Cash Flow Statement | STATEMENTS OF CASH FLOWS For the years ended December 31, 2020 and 2019 (Dollars in thousands) 2020 2019 Cash flows from operating activities: Net income $ 24,332 $ 26,548 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Equity in undistributed income of subsidiary (27,383) (25,633) Other assets (2,417) (1,894) Other liabilities 143 712 Net cash used in operating activities (5,325) (267) Cash flows from investing activities: Net cash paid for business combinations (6,713) — Equity contribution from subsidiary 13,900 — Net cash used in investing activities 7,187 — Cash flows from financing activities: Issuance of common stock 339 438 Cash dividends paid (2,986) (700) Repurchase of common stock (4,308) — Net cash (used) provided by financing activities (6,955) (262) Net change in cash and cash equivalents (5,093) (529) Cash and cash equivalents, beginning of year 13,155 13,684 Cash and cash equivalents, end of period $ 8,062 $ 13,155 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended | |
Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($) | |
Accounting Policies [Line Items] | ||
Federal Reserve Bank, reserve requirement | $ 0 | $ 49,200,000 |
Other real estate owned | 4,619,000 | 1,757,000 |
Mortgage loans in process of foreclosure | 26,000 | 215,000 |
Residential Real Estate [Member] | ||
Accounting Policies [Line Items] | ||
Other real estate owned | 26,000 | $ 215,000 |
Mortgage loans in process of foreclosure | $ 384,000 | |
Mortgage loans in process of foreclosure number of loans | 5 | 0 |
Minimum | ||
Accounting Policies [Line Items] | ||
Intangible asset, useful life | 5 years | |
Maximum | ||
Accounting Policies [Line Items] | ||
Intangible asset, useful life | 12 years |
Business Combinations (Narrativ
Business Combinations (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 01, 2020 | Apr. 23, 2019 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||||
Cash to be paid upon conversion (in dollars per share) | $ 474.82 | |||||
Pro forma, revenue of acquiree since acquisition date, actual | $ 10,227 | |||||
Pro forma information, earnings (loss) since acquisition date, actual | 3,581 | |||||
Pro forma revenue | 119,334 | $ 115,479 | ||||
Pro forma net income (loss) | 27,436 | 27,952 | ||||
Goodwill | $ 74,135 | 74,135 | 65,614 | $ 66,087 | ||
Merger-related costs | 4,565 | $ 3,219 | ||||
Progressive Financial Group Inc. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Assets acquired | $ 301,041 | |||||
Liabilities assumed | $ 272,052 | |||||
Progressive Financial Group Inc. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Common shares to be converted (in shares) | 62.3808 | |||||
Number of shares issued (in shares) | 1,292,578 | |||||
Cash consideration paid | $ 9,800 | 9,838 | ||||
Assets acquired | 301,000 | 298,645 | 298,645 | |||
Liabilities assumed | 272,000 | 272,781 | 272,781 | |||
Goodwill | 8,500 | $ 8,521 | 8,521 | |||
Merger-related costs | $ 4,600 | |||||
Progressive Financial Group Inc. [Member] | Core Deposits [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets acquired | $ 1,400 | |||||
Useful life | 10 years | |||||
Progressive Financial Group Inc. [Member] | Customer Relationships [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets acquired | $ 1,100 | |||||
Useful life | 5 years | |||||
Progressive Financial Group Inc. [Member] | Trade Names [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets acquired | $ 63 | |||||
Useful life | 10 years | |||||
Entegra Financial Corp [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Termination fee received | $ 6,400 |
Business Combinations (Allocati
Business Combinations (Allocation of Purchase Price of Progressive Financial Group, Inc.) (Details) - USD ($) $ in Thousands | Mar. 01, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Consideration transferred: | ||||
Goodwill | $ 74,135 | $ 65,614 | $ 66,087 | |
Progressive Financial Group Inc. [Member] | ||||
Assets: | ||||
Cash and cash equivalents | 55,971 | |||
Investment securities available-for-sale | 27,257 | |||
Restricted investments | 692 | |||
Loans | 187,981 | |||
Premises and equipment | 12,762 | |||
Bank owned life insurance | 5,560 | |||
Deferred tax asset, net | 891 | |||
Intangibles | 2,497 | |||
Other real estate owned | 2,171 | |||
Interest Receivable | 781 | |||
Prepaids | 201 | |||
Other assets | 1,881 | |||
Total assets acquired | $ 301,000 | 298,645 | ||
Liabilities: | ||||
Deposits | 271,276 | |||
Time deposit premium | 729 | |||
Payables and other liabilities | 776 | |||
Total liabilities assumed | 272,000 | 272,781 | ||
Total fair value of net assets acquired | 25,864 | |||
Cash consideration paid | $ 9,800 | 9,838 | ||
Common stock issued | 24,547 | |||
Number of shares issued (in shares) | 1,292,578 | |||
Business Combination, Consideration Transferred, Total | 34,385 | |||
Assets: | ||||
Investment securities available-for-sale | $ 203 | |||
Loans | (3,691) | |||
Allowance for loan losses | 2,832 | |||
Premises and equipment, net | (2,919) | |||
Deferred tax asset, net | 813 | 78 | ||
Intangibles | 1,370 | 1,127 | ||
Other real estate owned | (100) | (1,424) | ||
Interest Receivable | (280) | |||
Prepaids | (174) | |||
Goodwill | (231) | |||
Total assets acquired | (2,177) | (219) | ||
Liabilities: | ||||
Time deposit premium | 729 | |||
Total liabilities assumed | 729 | |||
Consideration transferred: | ||||
Aggregate fair value adjustments | (2,906) | (219) | ||
Goodwill | 8,500 | $ 8,521 | ||
Progressive Financial Group Inc. [Member] | ||||
Assets: | ||||
Cash and cash equivalents | 55,971 | |||
Investment securities available-for-sale | 27,054 | |||
Restricted investments | 692 | |||
Loans | 191,672 | |||
Allowance for loan losses | (2,832) | |||
Premises and equipment | 15,681 | |||
Bank owned life insurance | 5,560 | |||
Other real estate owned | 3,695 | |||
Interest Receivable | 1,061 | |||
Prepaids | 375 | |||
Goodwill | 231 | |||
Other assets | 1,881 | |||
Total assets acquired | 301,041 | |||
Liabilities: | ||||
Deposits | 271,276 | |||
Payables and other liabilities | 776 | |||
Total liabilities assumed | 272,052 | |||
Total fair value of net assets acquired | $ 28,989 |
Business Combinations (Alloca_2
Business Combinations (Allocation of Purchase Price of Foothills Bancorp) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Fair value of assets acquired and liabilities assumed: | |||
Goodwill | $ 74,135 | $ 65,614 | $ 66,087 |
Business Combinations (Pro Form
Business Combinations (Pro Forma Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Business Combinations [Abstract] | ||
Pro forma, revenue of acquiree since acquisition date, actual | $ 10,227 | |
Pro forma revenue | 119,334 | $ 115,479 |
Pro forma information, earnings (loss) since acquisition date, actual | 3,581 | |
Pro forma net income (loss) | $ 27,436 | $ 27,952 |
Business Combinations (Loans Ac
Business Combinations (Loans Acquired) (Details) - Progressive Financial Group Inc. [Member] - Purchased Credit Impaired Loans [Member] $ in Thousands | Mar. 01, 2020USD ($) |
Business Acquisition [Line Items] | |
Contractual principal and interest at acquisition | $ 21,107 |
Nonaccretable difference | 4,706 |
Expected cash flows at acquisition | 16,401 |
Accretable yield | 2,515 |
Basis in PCI loans at acquisition-estimated fair value | $ 13,886 |
Earnings per Share (Narrative)
Earnings per Share (Narrative) (Details) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive securities excluded from computation of earnings per share (in shares) | 73 | 0 |
Earnings per Share (Schedule of
Earnings per Share (Schedule of Earnings Per Share, Basic and Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive securities excluded from computation of earnings per share (in shares) | 73,000 | 0 |
Basic earnings per share computation: | ||
Net income available to common stockholders | $ 24,332 | $ 26,548 |
Average common shares outstanding - basic (in shares) | 14,955,423 | 13,953,497 |
Basic earnings per share (in dollars per share) | $ 1.63 | $ 1.90 |
Diluted earnings per share computation: | ||
Net income available to common stockholders | $ 24,332 | $ 26,548 |
Average common shares outstanding - basic (in shares) | 14,955,423 | 13,953,497 |
Incremental shares from assumed conversions: | ||
Stock options and restricted stock (in shares) | 63,752 | 92,869 |
Average common shares outstanding - diluted (in shares) | 15,019,175 | 14,046,366 |
Diluted earnings per share (in dollars per share) | $ 1.62 | $ 1.89 |
Securities (Narrative) (Details
Securities (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities pledged as collateral | $ 80.2 | $ 92.3 |
Securities (Schedule of Availab
Securities (Schedule of Available-for-sale Securities Reconciliation) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Total | $ 211,614 | $ 177,819 |
Gross Unrealized Gains | 4,221 | 1,063 |
Gross Unrealized Losses | (201) | (534) |
Fair Value | 215,634 | 178,348 |
US Government-sponsored Enterprises Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total | 30,526 | 19,015 |
Gross Unrealized Gains | 10 | 41 |
Gross Unrealized Losses | (6) | (56) |
Fair Value | 30,530 | 19,000 |
Municipal securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total | 89,644 | 63,792 |
Gross Unrealized Gains | 2,345 | 618 |
Gross Unrealized Losses | (19) | |
Fair Value | 91,989 | 64,391 |
Other Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total | 25,019 | 3,481 |
Gross Unrealized Gains | 112 | 22 |
Gross Unrealized Losses | (13) | (33) |
Fair Value | 25,118 | 3,470 |
Mortgage-backed securities (GSEs) [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total | 66,425 | 91,531 |
Gross Unrealized Gains | 1,754 | 382 |
Gross Unrealized Losses | (182) | (426) |
Fair Value | $ 67,997 | $ 91,487 |
Securities (Proceeds from sale
Securities (Proceeds from sale of securities available for sale, gains losses and proceeds from redemption) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from sales of securities available-for-sale | $ 11,759 | $ 16,515 |
Gross gains | 7 | 35 |
Losses realized | (1) | (1) |
Proceeds from maturities and calls | $ 49,633 | $ 15,555 |
Securities (Investments Classif
Securities (Investments Classified by Contractual Maturity Date) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Amortized Cost | ||
Due in one year or less | $ 4,907 | |
Due from one year to five years | 4,159 | |
Due from five years to ten years | 36,172 | |
Due after ten years | 99,951 | |
Securities available for sale, amortized cost | 145,189 | |
Total | 211,614 | $ 177,819 |
Fair Value | ||
Due in one year or less | 4,949 | |
Due from one year to five years | 4,174 | |
Due from five years to ten years | 36,442 | |
Due after ten years | 102,072 | |
Securities available for sale, fair value | 147,637 | |
Total | 215,634 | $ 178,348 |
Mortgage-backed securities [Member] | ||
Amortized Cost | ||
Mortgage-backed securities | 66,425 | |
Fair Value | ||
Mortgage-backed securities | $ 67,997 |
Securities (Sales of Available-
Securities (Sales of Available-for-sale Securities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||
Gains realized | $ 7 | $ 35 |
Losses realized | $ 1 | $ 1 |
Securities (Schedule of Unreali
Securities (Schedule of Unrealized Loss on Investments) (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 Months, Fair Value | $ 26,795,000 | $ 19,836,000 |
Less than 12 Months, Gross Unrealized Losses | $ (97,000) | $ (253,000) |
Available-for-sale, less than 12 months, number of securities | 10 | 16 |
Available-for-sale, fair value, 12 months or greater | $ 7,192,000 | $ 27,449,000 |
12 Months or Greater, Gross Unrealized Losses | $ (104,000) | $ (281,000) |
Available-for-sale, 12 months or greater, number of securities | 5 | 35 |
Total, Fair Value | $ 33,987,000 | $ 47,285,000 |
Total, Gross Unrealized Losses | $ (201,000) | $ (534,000) |
Available-for-sale, total, number of securities | 15 | 51 |
US Government-sponsored Enterprises Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 Months, Fair Value | $ 15,510,000 | $ 2,972,000 |
Less than 12 Months, Gross Unrealized Losses | $ (5,000) | $ (43,000) |
Available-for-sale, less than 12 months, number of securities | 3 | 2 |
Available-for-sale, fair value, 12 months or greater | $ 132,000 | $ 5,987,000 |
12 Months or Greater, Gross Unrealized Losses | $ (1,000) | $ (13,000) |
Available-for-sale, 12 months or greater, number of securities | 1 | 2 |
Total, Fair Value | $ 15,642,000 | $ 8,959,000 |
Total, Gross Unrealized Losses | $ (6,000) | $ (56,000) |
Available-for-sale, total, number of securities | 4 | 4 |
Municipal securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 Months, Fair Value | $ 3,656,000 | |
Less than 12 Months, Gross Unrealized Losses | $ (16,000) | |
Available-for-sale, less than 12 months, number of securities | 4 | |
Available-for-sale, fair value, 12 months or greater | $ 527,000 | |
12 Months or Greater, Gross Unrealized Losses | $ (3,000) | |
Available-for-sale, 12 months or greater, number of securities | 1 | |
Total, Fair Value | $ 4,183,000 | |
Total, Gross Unrealized Losses | $ (19,000) | |
Available-for-sale, total, number of securities | 5 | |
Other Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 Months, Fair Value | $ 1,495,000 | |
Less than 12 Months, Gross Unrealized Losses | $ (5,000) | |
Available-for-sale, less than 12 months, number of securities | 1 | |
Available-for-sale, fair value, 12 months or greater | $ 977,000 | $ 947,000 |
12 Months or Greater, Gross Unrealized Losses | $ (8,000) | $ (33,000) |
Available-for-sale, 12 months or greater, number of securities | 1 | 1 |
Total, Fair Value | $ 2,472,000 | $ 947,000 |
Total, Gross Unrealized Losses | $ (13,000) | $ (33,000) |
Available-for-sale, total, number of securities | 2 | 1 |
Mortgage-backed securities (GSEs) [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 Months, Fair Value | $ 9,790,000 | $ 13,208,000 |
Less than 12 Months, Gross Unrealized Losses | $ (87,000) | $ (194,000) |
Available-for-sale, less than 12 months, number of securities | 6 | 10 |
Available-for-sale, fair value, 12 months or greater | $ 6,083,000 | $ 19,988,000 |
12 Months or Greater, Gross Unrealized Losses | $ (95,000) | $ (232,000) |
Available-for-sale, 12 months or greater, number of securities | 3 | 31 |
Total, Fair Value | $ 15,873,000 | $ 33,196,000 |
Total, Gross Unrealized Losses | $ (182,000) | $ (426,000) |
Available-for-sale, total, number of securities | 9 | 41 |
Securities (Other Investments)
Securities (Other Investments) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Other investments | $ 14,794 | $ 12,913 |
Federal Reserve Bank Stock [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Other investments | 8,606 | 7,917 |
Investment in Federal Home Loan Bank Stock [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Other investments | 5,838 | 4,646 |
First National Bankers Bank Stock [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Other investments | $ 350 | $ 350 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Loan Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | $ 2,382,243 | $ 1,897,392 | |
Less: Allowance for loan losses | (18,346) | (10,243) | $ (8,275) |
Loans, net | 2,363,897 | 1,887,149 | |
Purchased Credit Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 32,064 | 26,987 | |
Less: Allowance for loan losses | (309) | (156) | |
Loans, net | 31,755 | 26,831 | |
All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 2,350,179 | 1,870,405 | |
Less: Allowance for loan losses | (18,037) | (10,087) | |
Loans, net | 2,332,142 | 1,860,318 | |
Commercial Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 1,012,976 | 905,306 | |
Less: Allowance for loan losses | (7,579) | (4,508) | (3,639) |
Commercial Real Estate [Member] | Purchased Credit Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 16,123 | 15,255 | |
Less: Allowance for loan losses | 0 | (17) | |
Commercial Real Estate [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 996,853 | 890,051 | |
Less: Allowance for loan losses | (7,579) | (4,491) | |
Consumer Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 443,930 | 417,482 | |
Less: Allowance for loan losses | (3,471) | (2,576) | (1,789) |
Consumer Real Estate [Member] | Purchased Credit Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 10,258 | 6,541 | |
Less: Allowance for loan losses | (88) | (74) | |
Consumer Real Estate [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 433,672 | 410,941 | |
Less: Allowance for loan losses | (3,383) | (2,502) | |
Construction and Land Development [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 278,075 | 227,626 | |
Less: Allowance for loan losses | (2,076) | (1,127) | (795) |
Construction and Land Development [Member] | Purchased Credit Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 5,348 | 4,458 | |
Less: Allowance for loan losses | 0 | ||
Construction and Land Development [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 272,727 | 223,168 | |
Less: Allowance for loan losses | (2,076) | (1,127) | |
Commercial and Industrial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 634,446 | 337,075 | |
Less: Allowance for loan losses | (5,107) | (1,957) | (1,746) |
Commercial and Industrial [Member] | Purchased Credit Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 308 | 407 | |
Less: Allowance for loan losses | (218) | (59) | |
Commercial and Industrial [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 634,138 | 336,668 | |
Less: Allowance for loan losses | (4,889) | (1,898) | |
Consumer and Other [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 12,816 | 9,903 | |
Less: Allowance for loan losses | (113) | (75) | $ (306) |
Consumer and Other [Member] | Purchased Credit Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 27 | 326 | |
Less: Allowance for loan losses | (3) | (6) | |
Consumer and Other [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 12,789 | 9,577 | |
Less: Allowance for loan losses | $ (110) | $ (69) |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2020USD ($)loancontractsegmentproperty | Dec. 31, 2019USD ($)property | |
Financing Receivable, Modifications [Line Items] | ||
Number of loan portfolio segments | segment | 5 | |
Nonaccrual restructured loans | $ 5,633,000 | $ 2,743,000 |
Number of loans modified as troubled debt restructurings with subsequent default | contract | 0 | |
Allowance for loan losses | $ 18,300,000 | 10,200,000 |
Commitments to extend credit | 476,841,000 | 384,411,000 |
Loans | $ 2,382,243,000 | $ 1,897,392,000 |
Number of properties in other real estate owned | property | 1 | 1 |
Provision charged to expense | $ 8,683,000 | $ 2,599,000 |
Increase (decrease) provision for loan expensed | $ 6,100,000 | |
Allowance for loan losses basis points | 1.25% | 1.00% |
Finance receivable increase (decrease) in reserve | $ 8,300,000 | |
Percentage of allowance for credit losses to aggregate loans | 0.77% | 0.54% |
Mortgage loans in process of foreclosure | $ 26,000 | $ 215,000 |
Financing Receivable Paycheck Protection Program Cares Act [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans related to payroll protection program | contract | 2,863 | |
Loans | $ 288,900,000 | |
Loan origination fee income | 11,000,000 | |
Loan interest income | 5,900,000 | |
Financing Receivable Cares Act [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Loan modification, amount | $ 17,200,000 | |
Aggregate loans outstanding percentage | 0.70% | |
Related Party [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Commitments to extend credit | $ 6,200,000 | |
Trouble Debt Restructuring [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled debt restructuring | 257,000 | 61,000 |
Nonaccrual restructured loans | 0 | 0 |
Purchased Credit Impaired Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Allowance for loan losses | 309,000 | $ 156,000 |
Residential Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Mortgage loans in process of foreclosure | $ 384,000 | |
Mortgage loans in process of foreclosure number of loans | 5 | 0 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Performing and Impaired Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 2,382,243 | $ 1,897,392 |
All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 2,350,179 | 1,870,405 |
Purchased Credit Impaired Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 32,064 | 26,987 |
Commercial Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,012,976 | 905,306 |
Commercial Real Estate [Member] | All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 996,853 | 890,051 |
Commercial Real Estate [Member] | Purchased Credit Impaired Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 16,123 | 15,255 |
Consumer Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 443,930 | 417,482 |
Consumer Real Estate [Member] | All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 433,672 | 410,941 |
Consumer Real Estate [Member] | Purchased Credit Impaired Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 10,258 | 6,541 |
Construction and Land Development [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 278,075 | 227,626 |
Construction and Land Development [Member] | All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 272,727 | 223,168 |
Construction and Land Development [Member] | Purchased Credit Impaired Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 5,348 | 4,458 |
Commercial and Industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 634,446 | 337,075 |
Commercial and Industrial [Member] | All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 634,138 | 336,668 |
Commercial and Industrial [Member] | Purchased Credit Impaired Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 308 | 407 |
Consumer and Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 12,816 | 9,903 |
Consumer and Other [Member] | All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 12,789 | 9,577 |
Consumer and Other [Member] | Purchased Credit Impaired Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 27 | 326 |
Performing [Member] | All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 2,344,846 | 1,867,895 |
Performing [Member] | Commercial Real Estate [Member] | All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 992,982 | 889,795 |
Performing [Member] | Consumer Real Estate [Member] | All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 432,356 | 409,394 |
Performing [Member] | Construction and Land Development [Member] | All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 272,727 | 222,621 |
Performing [Member] | Commercial and Industrial [Member] | All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 633,992 | 336,508 |
Performing [Member] | Consumer and Other [Member] | All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 12,789 | 9,577 |
Impaired Loans [Member] | All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 5,333 | 2,510 |
Impaired Loans [Member] | Commercial Real Estate [Member] | All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 3,871 | 256 |
Impaired Loans [Member] | Consumer Real Estate [Member] | All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,316 | 1,547 |
Impaired Loans [Member] | Construction and Land Development [Member] | All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 547 | |
Impaired Loans [Member] | Commercial and Industrial [Member] | All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 146 | 160 |
Impaired Loans [Member] | Consumer and Other [Member] | All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 0 | $ 0 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - ALL by Loan Classification (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | $ 18,346 | $ 10,243 | $ 8,275 |
All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 18,037 | 10,087 | |
Purchased Credit Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 309 | 156 | |
Performing [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 17,800 | 9,612 | |
Impaired Loans [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 237 | 475 | |
Commercial Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 7,579 | 4,508 | 3,639 |
Commercial Real Estate [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 7,579 | 4,491 | |
Commercial Real Estate [Member] | Purchased Credit Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 0 | 17 | |
Commercial Real Estate [Member] | Performing [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 7,579 | 4,491 | |
Commercial Real Estate [Member] | Impaired Loans [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 0 | ||
Consumer Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 3,471 | 2,576 | 1,789 |
Consumer Real Estate [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 3,383 | 2,502 | |
Consumer Real Estate [Member] | Purchased Credit Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 88 | 74 | |
Consumer Real Estate [Member] | Performing [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 3,267 | 2,159 | |
Consumer Real Estate [Member] | Impaired Loans [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 116 | 343 | |
Construction and Land Development [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 2,076 | 1,127 | 795 |
Construction and Land Development [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 2,076 | 1,127 | |
Construction and Land Development [Member] | Purchased Credit Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 0 | ||
Construction and Land Development [Member] | Performing [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 2,076 | 1,127 | |
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 | ||
Commercial and Industrial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 5,107 | 1,957 | 1,746 |
Commercial and Industrial [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 4,889 | 1,898 | |
Commercial and Industrial [Member] | Purchased Credit Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 218 | 59 | |
Commercial and Industrial [Member] | Performing [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 4,768 | 1,766 | |
Commercial and Industrial [Member] | Impaired Loans [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 121 | 132 | |
Consumer and Other [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 113 | 75 | $ 306 |
Consumer and Other [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 110 | 69 | |
Consumer and Other [Member] | Purchased Credit Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 3 | 6 | |
Consumer and Other [Member] | Performing [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 110 | $ 69 | |
Consumer and Other [Member] | Impaired Loans [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | $ 0 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - ALL Roll Forward (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | $ 10,243 | $ 8,275 |
Charged off loans | (841) | (1,043) |
Recoveries of charge-offs | 261 | 412 |
Provision charged to expense | 8,683 | 2,599 |
Ending balance | 18,346 | 10,243 |
Commercial Real Estate [Member] | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 4,508 | 3,639 |
Charged off loans | (36) | |
Recoveries of charge-offs | 19 | 65 |
Provision charged to expense | 3,052 | 840 |
Ending balance | 7,579 | 4,508 |
Consumer Real Estate [Member] | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 2,576 | 1,789 |
Charged off loans | (23) | (4) |
Recoveries of charge-offs | 39 | 164 |
Provision charged to expense | 879 | 627 |
Ending balance | 3,471 | 2,576 |
Construction and Land Development [Member] | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 1,127 | 795 |
Recoveries of charge-offs | 2 | 8 |
Provision charged to expense | 947 | 324 |
Ending balance | 2,076 | 1,127 |
Commercial and Industrial [Member] | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 1,957 | 1,746 |
Charged off loans | (420) | (659) |
Recoveries of charge-offs | 114 | 77 |
Provision charged to expense | 3,456 | 793 |
Ending balance | 5,107 | 1,957 |
Consumer and Other [Member] | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 75 | 306 |
Charged off loans | (398) | (344) |
Recoveries of charge-offs | 87 | 98 |
Provision charged to expense | 349 | 15 |
Ending balance | $ 113 | $ 75 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Loan Risk Rating (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 2,382,243 | $ 1,897,392 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,012,976 | 905,306 |
Consumer Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 443,930 | 417,482 |
Construction and Land Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 278,075 | 227,626 |
Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 634,446 | 337,075 |
Consumer and Other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 12,816 | 9,903 |
All Other Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,350,179 | 1,870,405 |
All Other Loans [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,247,263 | 1,822,268 |
All Other Loans [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 91,611 | 39,084 |
All Other Loans [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 4,812 | 5,828 |
All Other Loans [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 6,359 | 2,979 |
All Other Loans [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 134 | 246 |
All Other Loans [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 996,853 | 890,051 |
All Other Loans [Member] | Commercial Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 922,153 | 860,447 |
All Other Loans [Member] | Commercial Real Estate [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 66,287 | 25,180 |
All Other Loans [Member] | Commercial Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 4,446 | 4,057 |
All Other Loans [Member] | Commercial Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 3,967 | 367 |
All Other Loans [Member] | Commercial Real Estate [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
All Other Loans [Member] | Consumer Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 433,672 | 410,941 |
All Other Loans [Member] | Consumer Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 417,302 | 407,336 |
All Other Loans [Member] | Consumer Real Estate [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 14,218 | 989 |
All Other Loans [Member] | Consumer Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 46 | 738 |
All Other Loans [Member] | Consumer Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,020 | 1,713 |
All Other Loans [Member] | Consumer Real Estate [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 86 | 165 |
All Other Loans [Member] | Construction and Land Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 272,727 | 223,168 |
All Other Loans [Member] | Construction and Land Development [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 269,350 | 216,459 |
All Other Loans [Member] | Construction and Land Development [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 3,296 | 6,089 |
All Other Loans [Member] | Construction and Land Development [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
All Other Loans [Member] | Construction and Land Development [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 81 | 620 |
All Other Loans [Member] | Construction and Land Development [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
All Other Loans [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 634,138 | 336,668 |
All Other Loans [Member] | Commercial and Industrial [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 625,836 | 328,564 |
All Other Loans [Member] | Commercial and Industrial [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 7,673 | 6,786 |
All Other Loans [Member] | Commercial and Industrial [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 320 | 1,033 |
All Other Loans [Member] | Commercial and Industrial [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 261 | 228 |
All Other Loans [Member] | Commercial and Industrial [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 48 | 57 |
All Other Loans [Member] | Consumer and Other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 12,789 | 9,577 |
All Other Loans [Member] | Consumer and Other [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 12,622 | 9,462 |
All Other Loans [Member] | Consumer and Other [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 137 | 40 |
All Other Loans [Member] | Consumer and Other [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
All Other Loans [Member] | Consumer and Other [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 30 | 51 |
All Other Loans [Member] | Consumer and Other [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 24 |
Purchased Credit Impaired Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 32,064 | 26,987 |
Purchased Credit Impaired Loans [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 20,749 | 18,974 |
Purchased Credit Impaired Loans [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 7,427 | 5,841 |
Purchased Credit Impaired Loans [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 76 | 199 |
Purchased Credit Impaired Loans [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 3,812 | 1,973 |
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 16,123 | 15,255 |
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 11,072 | 12,473 |
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 3,381 | 2,234 |
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 19 | 139 |
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,651 | 409 |
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Purchased Credit Impaired Loans [Member] | Consumer Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 10,258 | 6,541 |
Purchased Credit Impaired Loans [Member] | Consumer Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 8,382 | 5,258 |
Purchased Credit Impaired Loans [Member] | Consumer Real Estate [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 224 | 38 |
Purchased Credit Impaired Loans [Member] | Consumer Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 57 | 60 |
Purchased Credit Impaired Loans [Member] | Consumer Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,595 | 1,185 |
Purchased Credit Impaired Loans [Member] | Consumer Real Estate [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Purchased Credit Impaired Loans [Member] | Construction and Land Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 5,348 | 4,458 |
Purchased Credit Impaired Loans [Member] | Construction and Land Development [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,008 | 902 |
Purchased Credit Impaired Loans [Member] | Construction and Land Development [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 3,820 | 3,556 |
Purchased Credit Impaired Loans [Member] | Construction and Land Development [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Purchased Credit Impaired Loans [Member] | Construction and Land Development [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 520 | 0 |
Purchased Credit Impaired Loans [Member] | Construction and Land Development [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Purchased Credit Impaired Loans [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 308 | 407 |
Purchased Credit Impaired Loans [Member] | Commercial and Industrial [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 262 | 41 |
Purchased Credit Impaired Loans [Member] | Commercial and Industrial [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | |
Purchased Credit Impaired Loans [Member] | Commercial and Industrial [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | |
Purchased Credit Impaired Loans [Member] | Commercial and Industrial [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 46 | 366 |
Purchased Credit Impaired Loans [Member] | Commercial and Industrial [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | |
Purchased Credit Impaired Loans [Member] | Consumer and Other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 27 | 326 |
Purchased Credit Impaired Loans [Member] | Consumer and Other [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 25 | 300 |
Purchased Credit Impaired Loans [Member] | Consumer and Other [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2 | 13 |
Purchased Credit Impaired Loans [Member] | Consumer and Other [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Purchased Credit Impaired Loans [Member] | Consumer and Other [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 13 |
Purchased Credit Impaired Loans [Member] | Consumer and Other [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 0 | $ 0 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Past Due Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual restructured loans | $ 5,633 | $ 2,743 |
Total Past Due | 8,235 | 6,651 |
Current Loans | 2,341,944 | 1,863,754 |
Total loans | 2,382,243 | 1,897,392 |
Financial Asset, 30 to 60 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due and accruing | 2,321 | 3,182 |
Financial Asset, 61 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due and accruing | 132 | 119 |
Financial Asset, Past 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due and accruing | 149 | 607 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual restructured loans | 3,740 | 124 |
Total Past Due | 3,941 | 612 |
Current Loans | 992,912 | 889,439 |
Total loans | 1,012,976 | 905,306 |
Commercial Real Estate [Member] | Financial Asset, 30 to 60 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due and accruing | 134 | 466 |
Commercial Real Estate [Member] | Financial Asset, 61 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due and accruing | 0 | 22 |
Commercial Real Estate [Member] | Financial Asset, Past 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due and accruing | 67 | 0 |
Consumer Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual restructured loans | 1,823 | 1,872 |
Total Past Due | 3,872 | 3,466 |
Current Loans | 429,800 | 407,475 |
Total loans | 443,930 | 417,482 |
Consumer Real Estate [Member] | Financial Asset, 30 to 60 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due and accruing | 1,916 | 1,564 |
Consumer Real Estate [Member] | Financial Asset, 61 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due and accruing | 51 | 30 |
Consumer Real Estate [Member] | Financial Asset, Past 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due and accruing | 82 | 0 |
Construction and Land Development [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual restructured loans | 12 | 620 |
Total Past Due | 257 | 1,734 |
Current Loans | 272,470 | 221,434 |
Total loans | 278,075 | 227,626 |
Construction and Land Development [Member] | Financial Asset, 30 to 60 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due and accruing | 245 | 507 |
Construction and Land Development [Member] | Financial Asset, 61 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due and accruing | 0 | 0 |
Construction and Land Development [Member] | Financial Asset, Past 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due and accruing | 0 | 607 |
Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual restructured loans | 36 | 57 |
Total Past Due | 124 | 669 |
Current Loans | 634,014 | 335,999 |
Total loans | 634,446 | 337,075 |
Commercial and Industrial [Member] | Financial Asset, 30 to 60 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due and accruing | 12 | 559 |
Commercial and Industrial [Member] | Financial Asset, 61 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due and accruing | 76 | 53 |
Commercial and Industrial [Member] | Financial Asset, Past 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due and accruing | 0 | 0 |
Consumer and Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual restructured loans | 22 | 70 |
Total Past Due | 41 | 170 |
Current Loans | 12,748 | 9,407 |
Total loans | 12,816 | 9,903 |
Consumer and Other [Member] | Financial Asset, 30 to 60 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due and accruing | 14 | 86 |
Consumer and Other [Member] | Financial Asset, 61 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due and accruing | 5 | 14 |
Consumer and Other [Member] | Financial Asset, Past 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due and accruing | 0 | 0 |
Purchased Credit Impaired Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 32,064 | 26,987 |
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 16,123 | 15,255 |
Purchased Credit Impaired Loans [Member] | Consumer Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 10,258 | 6,541 |
Purchased Credit Impaired Loans [Member] | Construction and Land Development [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 5,348 | 4,458 |
Purchased Credit Impaired Loans [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 308 | 407 |
Purchased Credit Impaired Loans [Member] | Consumer and Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | $ 27 | $ 326 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Impaired Loan Portfolio (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with a valuation allowance, Related Allowance | $ 546 | $ 631 |
Total impaired loans, Recorded Investment | 7,451 | 4,173 |
Total impaired loans, Unpaid Principal Balance | 7,674 | 4,570 |
Total impaired loans, Average Recorded Investment | 5,118 | 5,172 |
Total impaired loans, Interest Income Recognized | 204 | 113 |
All Other Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans without a valuation allowance, Recorded Investment | 4,759 | 1,356 |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 4,760 | 1,361 |
Impaired loans with a valuation allowance, Recorded Investment | 574 | 1,154 |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 574 | 1,154 |
Impaired loans with a valuation allowance, Related Allowance | 237 | 475 |
Impaired loans without a valuation allowance, Average Recorded Investment | 2,005 | 1,774 |
Impaired loans without a valuation allowance, Interest Income Recognized | 45 | 52 |
Impaired loans with a valuation allowance, Average Recorded Investment | 1,058 | 870 |
Impaired loans with a valuation allowance, Interest Income Recognized | 34 | 34 |
All Other Loans [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans without a valuation allowance, Recorded Investment | 3,871 | 256 |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 3,872 | 261 |
Impaired loans with a valuation allowance, Recorded Investment | 0 | 0 |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 0 | 0 |
Impaired loans with a valuation allowance, Related Allowance | 0 | 0 |
Impaired loans without a valuation allowance, Average Recorded Investment | 1,073 | 399 |
Impaired loans without a valuation allowance, Interest Income Recognized | 12 | 30 |
Impaired loans with a valuation allowance, Average Recorded Investment | 158 | 9 |
Impaired loans with a valuation allowance, Interest Income Recognized | 2 | 1 |
All Other Loans [Member] | Consumer Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans without a valuation allowance, Recorded Investment | 888 | 553 |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 888 | 553 |
Impaired loans with a valuation allowance, Recorded Investment | 428 | 994 |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 428 | 994 |
Impaired loans with a valuation allowance, Related Allowance | 116 | 343 |
Impaired loans without a valuation allowance, Average Recorded Investment | 701 | 725 |
Impaired loans without a valuation allowance, Interest Income Recognized | 33 | 15 |
Impaired loans with a valuation allowance, Average Recorded Investment | 656 | 397 |
Impaired loans with a valuation allowance, Interest Income Recognized | 24 | 17 |
All Other Loans [Member] | Construction and Land Development [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans without a valuation allowance, Recorded Investment | 0 | 547 |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 0 | 547 |
Impaired loans with a valuation allowance, Recorded Investment | 0 | 0 |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 0 | 0 |
Impaired loans with a valuation allowance, Related Allowance | 0 | 0 |
Impaired loans without a valuation allowance, Average Recorded Investment | 231 | 619 |
Impaired loans without a valuation allowance, Interest Income Recognized | 5 | |
Impaired loans with a valuation allowance, Average Recorded Investment | 11 | |
All Other Loans [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans without a valuation allowance, Recorded Investment | 0 | 0 |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 0 | 0 |
Impaired loans with a valuation allowance, Recorded Investment | 146 | 160 |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 146 | 160 |
Impaired loans with a valuation allowance, Related Allowance | 121 | 132 |
Impaired loans without a valuation allowance, Average Recorded Investment | 20 | |
Impaired loans without a valuation allowance, Interest Income Recognized | 1 | |
Impaired loans with a valuation allowance, Average Recorded Investment | 244 | 430 |
Impaired loans with a valuation allowance, Interest Income Recognized | 8 | 16 |
All Other Loans [Member] | Consumer and Other [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans without a valuation allowance, Recorded Investment | 0 | 0 |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 0 | 0 |
Impaired loans with a valuation allowance, Recorded Investment | 0 | 0 |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 0 | 0 |
Impaired loans with a valuation allowance, Related Allowance | 0 | 0 |
Impaired loans without a valuation allowance, Average Recorded Investment | 11 | |
Impaired loans without a valuation allowance, Interest Income Recognized | 1 | |
Impaired loans with a valuation allowance, Average Recorded Investment | 23 | |
Purchased Credit Impaired Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with a valuation allowance, Recorded Investment | 2,118 | 1,663 |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 2,340 | 2,055 |
Impaired loans with a valuation allowance, Related Allowance | 309 | 156 |
Impaired loans with a valuation allowance, Average Recorded Investment | 2,055 | 2,528 |
Impaired loans with a valuation allowance, Interest Income Recognized | 125 | 27 |
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with a valuation allowance, Recorded Investment | 0 | 17 |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 0 | 99 |
Impaired loans with a valuation allowance, Related Allowance | 0 | 17 |
Impaired loans with a valuation allowance, Average Recorded Investment | 200 | 1,518 |
Impaired loans with a valuation allowance, Interest Income Recognized | 1 | |
Impaired loans with a valuation allowance, Interest Income (Expense) Recognized | (25) | |
Purchased Credit Impaired Loans [Member] | Consumer Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with a valuation allowance, Recorded Investment | 1,827 | 1,205 |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 2,086 | 1,371 |
Impaired loans with a valuation allowance, Related Allowance | 88 | 74 |
Impaired loans with a valuation allowance, Average Recorded Investment | 1,461 | 922 |
Impaired loans with a valuation allowance, Interest Income Recognized | 117 | 42 |
Purchased Credit Impaired Loans [Member] | Construction and Land Development [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with a valuation allowance, Recorded Investment | 0 | 0 |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 0 | 0 |
Impaired loans with a valuation allowance, Related Allowance | 0 | 0 |
Impaired loans with a valuation allowance, Average Recorded Investment | 46 | |
Purchased Credit Impaired Loans [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with a valuation allowance, Recorded Investment | 270 | 396 |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 234 | 534 |
Impaired loans with a valuation allowance, Related Allowance | 218 | 59 |
Impaired loans with a valuation allowance, Average Recorded Investment | 321 | 79 |
Impaired loans with a valuation allowance, Interest Income Recognized | 7 | 9 |
Purchased Credit Impaired Loans [Member] | Consumer and Other [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with a valuation allowance, Recorded Investment | 21 | 45 |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 20 | 51 |
Impaired loans with a valuation allowance, Related Allowance | 3 | 6 |
Impaired loans with a valuation allowance, Average Recorded Investment | $ 27 | 9 |
Impaired loans with a valuation allowance, Interest Income Recognized | $ 1 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses (Troubled Debt Restructurings) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($)contract | |
Consumer Real Estate [Member] | |
Financing Receivable, Modifications [Line Items] | |
Number of Contracts | contract | 1 |
Pre-Modification Outstanding Recorded Investment | $ 108 |
Post-Modification Outstanding Recorded Investment | $ 108 |
Commercial and Industrial [Member] | |
Financing Receivable, Modifications [Line Items] | |
Number of Contracts | contract | 3 |
Pre-Modification Outstanding Recorded Investment | $ 141 |
Post-Modification Outstanding Recorded Investment | $ 141 |
Consumer and Other [Member] | |
Financing Receivable, Modifications [Line Items] | |
Number of Contracts | contract | 1 |
Pre-Modification Outstanding Recorded Investment | $ 8 |
Post-Modification Outstanding Recorded Investment | $ 8 |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Losses - Purchased Credit Impaired Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ||
Less: Allowance for loan losses | $ (18,300) | $ (10,200) |
Purchased Credit Impaired Loans [Member] | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ||
Total loans | 44,973 | 38,419 |
Less remaining purchase discount | (12,909) | (11,432) |
Total loans, net of purchase discount | 32,064 | 26,987 |
Less: Allowance for loan losses | (309) | (156) |
Carrying amount, net of allowance | 31,755 | 26,831 |
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 | 23,787 | 21,570 |
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 | 12,692 | 8,411 |
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 | 1,812 | 5,394 |
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 | 6,521 | 2,540 |
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 | $ 161 | $ 504 |
Loans and Allowance for Loan_13
Loans and Allowance for Loan Losses - Accretable Yield Roll Forward (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Accretable yield, beginning of period | $ 8,454 | $ 7,052 |
Additions | 2,515 | |
Accretion income | (5,347) | (4,627) |
Reclassification from nonaccretable | 2,792 | 3,555 |
Other changes, net | 8,475 | 2,474 |
Accretable yield, end of period | $ 16,889 | $ 8,454 |
Loans and Allowance for Loan_14
Loans and Allowance for Loan Losses (Related Party Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | ||
Balance, beginning of year | $ 24,091 | $ 31,246 |
Disbursements | 7,108 | 16,297 |
Repayments | (16,740) | (23,452) |
Balance, end of year | $ 14,459 | $ 24,091 |
Premises and Equipment (Summary
Premises and Equipment (Summary of Premises and Equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Land and land improvements | $ 16,724 | $ 14,712 |
Building and leasehold improvements | 53,701 | 38,640 |
Furniture, fixtures and equipment | 18,095 | 13,744 |
Construction in progress | 964 | 5,523 |
Total, gross | 89,484 | 72,619 |
Accumulated depreciation | (16,802) | (13,186) |
Total, net | $ 72,682 | $ 59,433 |
Minimum | Building and Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 15 years | |
Minimum | Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 3 years | |
Maximum | Building and Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 40 years | |
Maximum | Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 7 years |
Premises and Equipment (Narrati
Premises and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | ||
Estimated costs to complete construction in progress | $ 150 | |
Depreciation and amortization expense | $ 3,700 | $ 2,800 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill, impairment loss | $ 0 | ||
Amortization of intangibles | 1,740,000 | $ 1,368,000 | |
Goodwill | $ 74,135,000 | $ 65,614,000 | $ 66,087,000 |
Customer Relationships [Member] | |||
Intangible asset, useful life | 10 years | ||
Trade Names [Member] | |||
Intangible asset, useful life | 5 years |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Thousands | Mar. 01, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Goodwill [Roll Forward] | |||
Goodwill, Beginning Balance | $ 65,614 | $ 66,087 | |
Goodwill, Ending Balance | 74,135 | 65,614 | |
Foothills Bancorp, Inc. [Member] | |||
Goodwill [Roll Forward] | |||
Adjustment to values initially recorded for acquisitions | $ (473) | ||
Progressive Financial Group Inc. [Member] | |||
Goodwill [Roll Forward] | |||
Adjustment to values initially recorded for acquisitions | $ (231) | ||
Acquisition of PFG | 8,521 | ||
Goodwill, Ending Balance | $ 8,500 | $ 8,521 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-lived Intangible Assets [Roll Forward] | ||||
Balance, beginning of period | $ 14,550 | |||
Acquisition of PFG | 2,497 | |||
Balance, gross core deposit intangible | 17,047 | |||
Finite Lived Intangible Assets Accumulated Amortization [Abstract] | ||||
Gross Carrying Amount | 17,047 | $ 17,047 | $ 14,550 | $ 14,550 |
Less: accumulated amortization | (4,711) | (2,971) | ||
Total | 12,336 | 11,579 | ||
Core Deposits [Member] | ||||
Finite-lived Intangible Assets [Roll Forward] | ||||
Balance, beginning of period | 14,550 | |||
Acquisition of PFG | 1,370 | |||
Balance, gross core deposit intangible | 15,920 | |||
Finite Lived Intangible Assets Accumulated Amortization [Abstract] | ||||
Gross Carrying Amount | 15,920 | 15,920 | 14,550 | $ 14,550 |
Less: accumulated amortization | (4,540) | (2,971) | ||
Total | 11,380 | $ 11,579 | ||
Customer Relationships [Member] | ||||
Finite-lived Intangible Assets [Roll Forward] | ||||
Acquisition of PFG | 1,064 | |||
Balance, gross core deposit intangible | 1,064 | |||
Finite Lived Intangible Assets Accumulated Amortization [Abstract] | ||||
Gross Carrying Amount | 1,064 | 1,064 | ||
Less: accumulated amortization | (161) | |||
Total | 903 | |||
Trade Names [Member] | ||||
Finite-lived Intangible Assets [Roll Forward] | ||||
Acquisition of PFG | 63 | |||
Balance, gross core deposit intangible | 63 | |||
Finite Lived Intangible Assets Accumulated Amortization [Abstract] | ||||
Gross Carrying Amount | $ 63 | 63 | ||
Less: accumulated amortization | (10) | |||
Total | $ 53 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2021 | $ 1,760 | |
2022 | 1,697 | |
2023 | 1,636 | |
2024 | 1,588 | |
2025 | 1,531 | |
Thereafter | 4,124 | |
Total | $ 12,336 | $ 11,579 |
Deposits (Narrative) (Details)
Deposits (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Time Deposits Maturity [Line Items] | ||
Time deposits of 250,000 or more | $ 138,100 | $ 136,500 |
Fair value adjustments to time deposits | 336 | 206 |
Deposit liabilities reclassified as loans receivable | 285 | 254 |
Related Party [Member] | ||
Time Deposits Maturity [Line Items] | ||
Related party deposit liabilities | $ 21,600 | $ 16,800 |
Deposits (Scheduled Maturities)
Deposits (Scheduled Maturities) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Deposits [Abstract] | |
2021 | $ 389,097 |
2022 | 82,271 |
2023 | 44,957 |
2024 | 22,444 |
2025 | 10,906 |
Thereafter | 487 |
Total | $ 550,162 |
Borrowings and Line of Credit_2
Borrowings and Line of Credit (Narrative) (Details) - USD ($) | May 01, 2018 | Dec. 31, 2020 | Dec. 31, 2019 |
Securities sold under agreements to repurchase | $ 5,800,000 | $ 6,200,000 | |
Carrying value of securities pledged as collateral | 7,600,000 | 12,900,000 | |
Carrying value of securities pledged to Federal Home Loan Bank | 0 | 0 | |
Federal funds purchased | 0 | 0 | |
Loans Payable [Member] | |||
Principal amount | $ 500,000 | ||
Interest rate | 4.75% | ||
Loan term | 10 years | ||
Other borrowings | $ 396,000 | $ 439,000 | |
Maximum | |||
Securities sold under agreements to repurchase, maturity period | 4 days | ||
Minimum | |||
Securities sold under agreements to repurchase, maturity period | 1 day | ||
Revolving Credit Facility [Member] | |||
Line of credit facility, maximum borrowing capacity | $ 25,000,000 | ||
Outstanding borrowings | $ 0 |
Borrowings and Line of Credit_3
Borrowings and Line of Credit (Borrowing capacity and loans secured for advances) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Federal Reserve Bank | ||
Debt Instrument [Line Items] | ||
Maximum funding capacity | $ 149,219 | $ 6,994 |
Additional funding capacity | 149,219 | 6,994 |
Loans secured for borrowings | 258,774 | 9,562 |
Federal Home Loan Bank Advances | ||
Debt Instrument [Line Items] | ||
Maximum funding capacity | 194,445 | 156,059 |
FHLB advances | (75,000) | (25,000) |
Secured lines of credit | (83,982) | (83,982) |
Additional funding capacity | 35,463 | 47,077 |
Loans secured for borrowings | $ 281,670 | $ 554,371 |
Borrowings and Line of Credit_4
Borrowings and Line of Credit (Schedule of Federal Home Loan Bank, Advances) (Details) - Federal Home Loan Bank Advances - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Long-term federal home loan bank advances | $ 75,000 | $ 25,000 |
Federal Home Loan Bank Advance Due 2029 | ||
Debt Instrument [Line Items] | ||
Federal Home Loan Bank, advances, interest rate (as a percent) | 0.93% | 0.93% |
Long-term federal home loan bank advances | $ 25,000 | $ 25,000 |
Federal Home Loan Bank Advance Due 2030 | ||
Debt Instrument [Line Items] | ||
Federal Home Loan Bank, advances, interest rate (as a percent) | 0.46% | 0.46% |
Long-term federal home loan bank advances | $ 50,000 |
Borrowings and Line of Credit -
Borrowings and Line of Credit - Debt Maturities (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Borrowings and Line of Credit [Abstract] | |
2021 | $ 45 |
2022 | 47 |
2023 | 50 |
2024 | 52 |
2025 | 54 |
Thereafter | 75,148 |
Total | $ 75,396 |
Subordinated debt (Details)
Subordinated debt (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 28, 2018 | |
Debt Instrument [Line Items] | |||
Debt issuance costs | $ 654,000 | $ 739,000 | |
Subordinated Debt [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 40,000,000 | ||
Interest rate | 5.625% | ||
Debt issuance costs | $ 842,000 | ||
Amortization expense of debt issuance costs | $ 84,000 | $ 84,000 | |
Subordinated Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 2.55% |
Leases - Lease Assets and Liabi
Leases - Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 4,797 | $ 5,470 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets | |
Operating lease liabilities | $ 4,827 | $ 5,479 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities | Other Liabilities |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)contract | Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Weighted average remaining lease term | 11 years 3 months 10 days | |
Weighted average discount rate | 2.72% | |
Lease expense | $ 1,200 | $ 875 |
Immediate Family Member of Board of Director [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Number of leasing arrangements | contract | 2 | |
Lease expense | $ 150 | $ 89 |
Leases - Lease Costs and Other
Leases - Lease Costs and Other Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lease costs: | ||
Operating lease costs | $ 1,044 | $ 703 |
Short-term lease costs | 12 | |
Variable lease costs | 111 | 95 |
Total | 1,155 | 810 |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 1,265 | $ 693 |
Leases - Future Minimum Payment
Leases - Future Minimum Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2021 | $ 804 | |
2022 | 623 | |
2023 | 485 | |
2024 | 366 | |
2025 | 348 | |
Thereafter | 3,032 | |
Total future minimum lease payments | 5,658 | |
Amounts representing interest | (831) | |
Present value of net future minimum lease payments | $ 4,827 | $ 5,479 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Current tax expense | ||
Federal | $ 6,330 | $ 5,143 |
State | 1,447 | 974 |
Deferred tax expense related to: | ||
Federal | (991) | 678 |
State | (228) | 102 |
Total income tax expense | $ 6,558 | $ 6,897 |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Federal income tax expense computed at the statutory rate | $ 6,487 | $ 7,024 |
State income taxes, net of federal tax benefit | 923 | 872 |
Nondeductible acquisition expenses | 109 | 0 |
Tax-exempt interest | (555) | (469) |
Tax benefit from stock options | (14) | (24) |
Other | (392) | (506) |
Total income tax expense | $ 6,558 | $ 6,897 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Federal income tax rate | 21.00% |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Allowance for loan losses | $ 4,744 | $ 2,688 |
Fair value adjustments | 3,854 | 4,098 |
Unrealized losses on securities | 0 | |
Unrealized losses on hedges or derivative securities | 278 | 79 |
Other real estate owned | 523 | 25 |
Deferred compensation | 1,103 | 976 |
Lease liability | 1,248 | 1,438 |
Federal net operating loss carryforward | 0 | 221 |
Other | 82 | 442 |
Total deferred tax assets | 11,832 | 9,967 |
Deferred tax liabilities: | ||
Accumulated depreciation | 1,374 | 1,610 |
Core deposit intangible | 3,112 | 2,971 |
Right of use asset | 1,240 | 1,435 |
Unrealized gains on available-for-sale securities | 1,051 | 139 |
Other | 663 | 332 |
Total deferred tax liabilities | 7,440 | 6,487 |
Net deferred tax asset | $ 4,392 | $ 3,480 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)planshares | Dec. 31, 2019USD ($)shares | |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined contribution plan, cost recognized | $ 1,100 | $ 818 |
Number of stock option plans | plan | 1 | |
Share-based compensation expense | $ 121 | |
Deferred tax benefit from stock options exercised | 18 | $ 61 |
Unrecognized compensation cost | $ 0 | |
Shares vested (in shares) | shares | 0 | 0 |
Stock Options [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Options, exercises in period, intrinsic value | $ 190 | $ 372 |
Options, outstanding, intrinsic value | 792 | |
Options, exercisable, intrinsic value | 792 | |
Proceeds from options exercised | 339 | |
Stock Appreciation Rights (SARs) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Share-based compensation expense | $ 51 | $ 134 |
Granted (in shares) | shares | 18,000 | 21,000 |
Restricted Stock [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Share-based compensation expense | $ 482 | $ 396 |
Unrecognized compensation cost | $ 1,000 | |
Unrecognized compensation costs, period for recognition | 2 years 10 months 6 days | |
Grant-date fair value | $ 134 | |
Vested (in shares) | shares | 7,295 | |
2015 Stock Incentive Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rights issued (in shares) | shares | 26,601 | |
Rights available for grant (in shares) | shares | 1,876,894 | |
Cornerstone Bancshares, Inc. Long-Term Incentive Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rights issued (in shares) | shares | 30,500 | |
Cornerstone Non-Qualified Plan Options [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rights issued (in shares) | shares | 40,250 | |
Capstone Stock Option Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rights issued (in shares) | shares | 2,266 | |
401 (k) Matching Range One [Member] | Deferred Salary Reduction Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
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 - Stock
Employee Benefit Plans - Stock Option Activity (Details) - Officer and Employee Plans [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Number | ||
Outstanding (in shares) | 136,658 | 170,625 |
Exercised (in shares) | (33,556) | (31,931) |
Forfeited (in shares) | (3,485) | (2,036) |
Outstanding (in shares) | 99,617 | 136,658 |
Weighted Average Exercisable Price | ||
Weighted Average Exercisable Price, Outstanding (in dollars per share) | $ 10.29 | $ 10.61 |
Weighted Average Exercisable Price Exercised (in dollars per share) | 10.12 | 11.85 |
Weighted Average Exercisable Price Forfeited (in dollars per share) | 15.05 | 12.20 |
Weighted Average Exercise Price, Outstanding (in dollars per share) | $ 10.19 | $ 10.29 |
Employee Benefit Plans (Options
Employee Benefit Plans (Options Outstanding by Exercise Price Range) (Details) - Officer and Employee Plans [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise Prices (in dollars per share) | $ 10.19 | $ 10.29 | $ 10.61 |
Number Outstanding (in shares) | 99,617 | 136,658 | 170,625 |
Options Outstanding, Weighted Average Remaining Life | 2 years 6 months 25 days | ||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 10.19 | ||
Exercisable (in shares) | 99,617 | ||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 10.19 | ||
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) | 19,250 | ||
Options Outstanding, Weighted Average Remaining Life | 1 year 2 months 8 days | ||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 6.60 | ||
Exercisable (in shares) | 19,250 | ||
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) | 11,250 | ||
Options Outstanding, Weighted Average Remaining Life | 1 month 28 days | ||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 6.80 | ||
Exercisable (in shares) | 11,250 | ||
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) | 18,500 | ||
Options Outstanding, Weighted Average Remaining Life | 2 years 2 months 8 days | ||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 9.48 | ||
Exercisable (in shares) | 18,500 | ||
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) | 21,750 | ||
Options Outstanding, Weighted Average Remaining Life | 2 years 11 months 26 days | ||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 9.60 | ||
Exercisable (in shares) | 21,750 | ||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 9.60 | ||
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) | 2,266 | ||
Options Outstanding, Weighted Average Remaining Life | 1 year 6 months | ||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 11.76 | ||
Exercisable (in shares) | 2,266 | ||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 11.76 | ||
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) | 26,601 | ||
Options Outstanding, Weighted Average Remaining Life | 4 years 6 months 25 days | ||
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 15.05 | ||
Exercisable (in shares) | 26,601 | ||
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 15.05 |
Employee Benefit Plans - Stoc_2
Employee Benefit Plans - Stock Appreciation Right Activity (Details) - Stock Appreciation Rights (SARs) [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Number | ||
Outstanding (in shares) | 67,000 | 50,000 |
Stock awards (in shares) | 18,000 | 21,000 |
Forfeited (in shares) | (12,000) | (4,000) |
Outstanding (in shares) | 73,000 | 67,000 |
Weighted Average Exercisable Price | ||
Weighted Average Exercisable Price, Outstanding (in dollars per share) | $ 20.54 | $ 21.64 |
Granted (in dollars per share) | 15.19 | 18.12 |
Weighted Average Exercisable Price Forfeited (in dollars per share) | 21.72 | 21.67 |
Weighted Average Exercise Price, Outstanding (in dollars per share) | $ 19.02 | $ 20.54 |
Employee Benefit Plans - SARs O
Employee Benefit Plans - SARs Outstanding by Exercise Price Range (Details) - Stock Appreciation Rights (SARs) [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise Prices (in dollars per share) | $ 19.02 | $ 20.54 | $ 21.64 |
Number Outstanding (in shares) | 73,000 | 67,000 | 50,000 |
SARs Outstanding, Weighted Average Remaining Life | 1 year 9 months 11 days | ||
SARs Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 19.02 | ||
15.19 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise Prices (in dollars per share) | $ 15.19 | ||
Number Outstanding (in shares) | 18,000 | ||
SARs Outstanding, Weighted Average Remaining Life | 3 years | ||
SARs Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 15.19 | ||
18.12 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise Prices (in dollars per share) | $ 18.12 | ||
Number Outstanding (in shares) | 21,000 | ||
SARs Outstanding, Weighted Average Remaining Life | 2 years | ||
SARs Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 18.12 | ||
21.61 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise Prices (in dollars per share) | $ 21.61 | ||
Number Outstanding (in shares) | 34,000 | ||
SARs Outstanding, Weighted Average Remaining Life | 1 year | ||
SARs Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 21.61 |
Employee Benefit Plans (Schedul
Employee Benefit Plans (Schedule of Non-vested Restricted Stock) (Details) - Restricted Stock [Member] | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Number | |
Nonvested, beginning of period (in shares) | shares | 65,400 |
Granted (in shares) | shares | 43,613 |
Vested (in shares) | shares | (7,295) |
Forfeited/expired (in shares) | shares | (1,500) |
Nonvested, end of period (in shares) | shares | 100,218 |
Weighted Average Grant-Date Fair Value | |
Nonvested, beginning balance (in dollars per share) | $ / shares | $ 21.04 |
Granted (in dollars per share) | $ / shares | 15.95 |
Vested (in dollars per share) | $ / shares | 18.32 |
Forfeited/expired (in dollars per share) | $ / shares | 18.12 |
Nonvested, ending balance (in dollars per share) | $ / shares | $ 19.07 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments to extend credit | $ 476,841 | $ 384,411 |
Standby letters of credit | $ 5,261 | $ 11,727 |
Regulatory Matters (Narrative)
Regulatory Matters (Narrative) (Details) - USD ($) | 12 Months Ended | 15 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | |
Common stock dividends (in dollars per share) | $ 0.05 | ||
Smart Bank [Member] | |||
Dividends | $ 13,900,000 | $ 0 |
Regulatory Matters (Regulatory
Regulatory Matters (Regulatory Capital Levels) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
SmartFinancial, Inc. [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Capital (to Risk-Weighted Assets), Actual Amount | $ 329,431 | $ 287,937 |
Tier 1 Capital (to Risk-Weighted Assets), Actual Amount | 271,739 | 238,433 |
Common Equity Tier 1 Capital (to Risk-Weighted Assets), Actual Amount | 271,739 | 238,433 |
Tier 1 Capital (to Average Assets), Actual Amount | $ 271,739 | $ 238,433 |
Total Capital (to Risk-Weighted Assets), Actual Ratio (as a percent) | 14.07% | 14.02% |
Tier 1 Capital (to Risk-Weighted Assets), Actual Ratio (as a percent) | 11.61% | 11.61% |
Common Equity Tier 1 Capital (to Risk-Weighted Assets), Actual Ratio (as a percent) | 11.61% | 11.61% |
Tier 1 Capital (to Average Assets), Actual Ratio (as a percent) | 8.70% | 10.34% |
Total Capital (to Risk-Weighted Assets), Minimum for capital adequacy purposes Amount | $ 187,303 | $ 164,313 |
Tier 1 Capital (to Risk-Weighted Assets), Minimum for capital adequacy purposes Amount | 140,477 | 123,235 |
Common Equity Tier 1 Capital (to Risk-Weighted Assets), Minimum for capital adequacy purposes Amount | 105,358 | 92,426 |
Tier 1 Capital (to Average Assets), Minimum for capital adequacy purposes Amount | $ 125,002 | $ 92,258 |
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 | $ 317,660 | $ 273,432 |
Tier 1 Capital (to Risk-Weighted Assets), Actual Amount | 299,314 | 263,189 |
Common Equity Tier 1 Capital (to Risk-Weighted Assets), Actual Amount | 299,314 | 263,189 |
Tier 1 Capital (to Average Assets), Actual Amount | $ 299,314 | $ 263,189 |
Total Capital (to Risk-Weighted Assets), Actual Ratio (as a percent) | 13.57% | 13.31% |
Tier 1 Capital (to Risk-Weighted Assets), Actual Ratio (as a percent) | 12.78% | 12.81% |
Common Equity Tier 1 Capital (to Risk-Weighted Assets), Actual Ratio (as a percent) | 12.78% | 12.81% |
Tier 1 Capital (to Average Assets), Actual Ratio (as a percent) | 9.58% | 11.41% |
Total Capital (to Risk-Weighted Assets), Minimum for capital adequacy purposes Amount | $ 187,294 | $ 164,305 |
Tier 1 Capital (to Risk-Weighted Assets), Minimum for capital adequacy purposes Amount | 140,470 | 123,229 |
Common Equity Tier 1 Capital (to Risk-Weighted Assets), Minimum for capital adequacy purposes Amount | 105,353 | 92,422 |
Tier 1 Capital (to Average Assets), Minimum for capital adequacy purposes Amount | $ 124,969 | $ 92,254 |
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 | $ 234,117 | $ 205,382 |
Tier 1 Capital (to Risk-Weighted Assets), Minimum to be well capitalized under prompt corrective action provisions Amount | 187,294 | 164,305 |
Common Equity Tier 1 Capital (to Risk-Weighted Assets), Minimum to be well capitalized under prompt corrective action provisions Amount | 152,176 | 133,498 |
Tier 1 Capital (to Average Assets), Minimum to be well capitalized under prompt corrective action provisions Amount | $ 156,212 | $ 115,317 |
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% |
Concentrations of Credit Risk (
Concentrations of Credit Risk (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
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 | |
Percentage of statutory capital | 25.00% | |
Credit extending terms, maximum amount of statutory capital | $ 95.6 | |
Commercial Real Estate [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 51.00% | 56.00% |
Loan Portfolio Secured by Real Estate [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 72.00% |
Fair Value Disclosures - Assets
Fair Value Disclosures - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale, at fair value | $ 215,634 | $ 178,348 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale, at fair value | 215,634 | 178,348 |
Derivative financial instruments | 6,174 | 3,446 |
US Government-sponsored Enterprises Debt Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale, at fair value | 30,530 | 19,000 |
Municipal securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale, at fair value | 91,989 | 64,391 |
Other Debt Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale, at fair value | 25,118 | 3,470 |
Mortgage-backed securities (GSEs) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale, at fair value | 67,997 | 91,487 |
Fair Value, Recurring [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale, at fair value | 215,634 | 178,348 |
Derivative financial instruments | 6,174 | 3,446 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale, at fair value | 215,634 | 178,348 |
Derivative financial instruments | 6,174 | 3,446 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Fair Value, Recurring [Member] | US Government-sponsored Enterprises Debt Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale, at fair value | 30,530 | 19,000 |
Fair Value, Recurring [Member] | US Government-sponsored Enterprises Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Fair Value, Recurring [Member] | US Government-sponsored Enterprises Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale, at fair value | 30,530 | 19,000 |
Fair Value, Recurring [Member] | US Government-sponsored Enterprises Debt Securities [Member] | Fair Value, 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, Recurring [Member] | Municipal securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale, at fair value | 91,989 | 64,391 |
Fair Value, Recurring [Member] | Municipal securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Fair Value, Recurring [Member] | Municipal securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale, at fair value | 91,989 | 64,391 |
Fair Value, Recurring [Member] | Municipal securities [Member] | Fair Value, 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, Recurring [Member] | Other Debt Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale, at fair value | 25,118 | 3,470 |
Fair Value, Recurring [Member] | Other Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Fair Value, Recurring [Member] | Other Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale, at fair value | 25,118 | 3,470 |
Fair Value, Recurring [Member] | Other Debt Securities [Member] | Fair Value, 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, Recurring [Member] | Mortgage-backed securities (GSEs) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale, at fair value | 67,997 | 91,487 |
Fair Value, Recurring [Member] | Mortgage-backed securities (GSEs) [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale, at fair value | 0 | 0 |
Fair Value, Recurring [Member] | Mortgage-backed securities (GSEs) [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available-for-sale, at fair value | 67,997 | 91,487 |
Fair Value, Recurring [Member] | Mortgage-backed securities (GSEs) [Member] | Fair Value, 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 of Assets and Liab_3
Fair Value of Assets and Liabilities (Assets and Liabilities Measured on Nonrecurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Impaired loans | $ 2,455 | $ 2,185 |
OREO | 4,619 | 1,757 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Impaired loans | 0 | 0 |
OREO | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Impaired loans | 0 | 0 |
OREO | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Impaired loans | 2,455 | 2,185 |
OREO | $ 4,619 | $ 1,757 |
Fair Value Disclosures Fair Val
Fair Value Disclosures Fair Value Disclosures - Unobservable Inputs (Details) $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans | $ 2,455 | $ 2,185 |
OREO | 4,619 | 1,757 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans | 2,455 | 2,185 |
OREO | 4,619 | 1,757 |
Appraisal And Discounted Cash Flow [Member] | Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans | 2,455 | 2,185 |
OREO | $ 4,619 | $ 1,757 |
Appraisal And Discounted Cash Flow [Member] | Measurement Input, Discount Rate [Member] | Fair Value, Nonrecurring [Member] | Weighted Average [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, measurement input | 9 | 22 |
OREO, measurement input | 22 | 29 |
Fair Value Disclosures - Carryi
Fair Value Disclosures - Carrying Amount and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Securities available-for-sale, at fair value | $ 215,634 | $ 178,348 |
Liabilities: | ||
Noninterest-bearing demand deposits | 685,957 | 364,155 |
Interest-bearing demand deposits | 649,129 | 380,234 |
Time deposits | 550,498 | 679,541 |
Carrying Amount [Member] | ||
Assets: | ||
Cash and cash equivalents | 481,719 | 183,971 |
Securities available-for-sale, at fair value | 215,634 | 178,348 |
Other investments | 14,794 | 12,913 |
Loans, net and loans held for sale | 2,375,618 | 1,893,005 |
Liabilities: | ||
Noninterest-bearing demand deposits | 685,957 | 364,155 |
Interest-bearing demand deposits | 649,129 | 380,234 |
Money market and savings deposits | 919,631 | 623,284 |
Time deposits | 550,498 | 679,541 |
Borrowings | 81,199 | 31,623 |
Subordinated debt | 39,346 | 39,261 |
Derivative financial instruments | 6,174 | 3,446 |
Estimated Fair Value [Member] | ||
Assets: | ||
Cash and cash equivalents | 481,719 | 183,971 |
Securities available-for-sale, at fair value | 215,634 | 178,348 |
Loans, net and loans held for sale | 2,377,581 | 1,879,825 |
Liabilities: | ||
Noninterest-bearing demand deposits | 685,957 | 364,155 |
Interest-bearing demand deposits | 649,129 | 380,234 |
Money market and savings deposits | 919,631 | 623,284 |
Time deposits | 554,120 | 681,902 |
Borrowings | 82,892 | 31,029 |
Subordinated debt | 40,550 | 35,868 |
Derivative financial instruments | 6,174 | 3,446 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets: | ||
Cash and cash equivalents | 481,719 | 183,971 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Securities available-for-sale, at fair value | 215,634 | 178,348 |
Liabilities: | ||
Noninterest-bearing demand deposits | 685,957 | 364,155 |
Interest-bearing demand deposits | 649,129 | 380,234 |
Money market and savings deposits | 919,631 | 623,284 |
Time deposits | 554,120 | 681,902 |
Borrowings | 82,892 | 31,029 |
Derivative financial instruments | 6,174 | 3,446 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets: | ||
Loans, net and loans held for sale | 2,377,581 | 1,879,825 |
Liabilities: | ||
Subordinated debt | $ 40,550 | $ 35,868 |
Derivatives - Fair Value Hedges
Derivatives - Fair Value Hedges on Balance Sheet (Details) - Interest Rate Swap Liability [Member] - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Derivatives, Fair Value [Line Items] | ||
Weighted Average Remaining Maturity (In Years) | 7 years 1 month 17 days | 8 years 2 months 12 days |
Weighted Average Pay Rate | 3.08% | 3.09% |
Notional Amount | $ 36,000 | $ 36,000 |
Estimated Fair Value | $ (6,174) | $ (3,446) |
Derivatives - Fair Value Hedg_2
Derivatives - Fair Value Hedges on Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Interest income on tax-exempt securities | $ 2,150 | $ 1,741 |
Effects of fair value hedge relationships | (781) | (223) |
Reported interest income on tax-exempt securities | 1,369 | 1,518 |
Interest Rate Swap [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on fair value hedging relationship | (6,174) | (3,446) |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on fair value hedging relationship | $ 6,174 | $ 3,446 |
Derivatives - Fair Value Hedg_3
Derivatives - Fair Value Hedges in Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Carrying amount of hedged asset | $ 44,017 | $ 42,710 |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets | $ (1,063) | $ (302) |
Other comprehensive income (l_3
Other comprehensive income (loss) (Activity in Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
BALANCE | $ 312,747 | $ 283,011 |
BALANCE | 357,168 | 312,747 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
BALANCE | 391 | (1,979) |
Other comprehensive income (loss) | 2,581 | 2,395 |
Reclassification of amounts included in net income | (4) | (25) |
Net other comprehensive income (loss) during period | 2,577 | 2,370 |
BALANCE | 2,968 | 391 |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
BALANCE | (223) | (786) |
Other comprehensive income (loss) | (562) | 563 |
Net other comprehensive income (loss) during period | (562) | 563 |
BALANCE | (785) | (223) |
AOCI Attributable to Parent [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
BALANCE | 168 | (2,765) |
Other comprehensive income (loss) | 2,019 | 2,958 |
Reclassification of amounts included in net income | (4) | (25) |
Net other comprehensive income (loss) during period | 2,015 | 2,933 |
BALANCE | $ 2,183 | $ 168 |
Condensed Parent Information (B
Condensed Parent Information (Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS: | |||
Cash | $ 481,719 | $ 183,971 | |
Other assets | 22,197 | 17,554 | |
Total assets | 3,304,949 | 2,449,123 | |
LIABILITIES AND STOCKHOLDERS' EQUITY: | |||
Other Liabilities | 22,021 | 18,278 | |
Total liabilities | 2,947,781 | 2,136,376 | |
Stockholders' equity | 357,168 | 312,747 | $ 283,011 |
Total liabilities and stockholders' equity | 3,304,949 | 2,449,123 | |
Parent [Member] | |||
ASSETS: | |||
Cash | 8,062 | 13,155 | |
Investment in subsidiaries | 384,743 | 337,503 | |
Other assets | 4,413 | 1,996 | |
Total assets | 397,218 | 352,654 | |
LIABILITIES AND STOCKHOLDERS' EQUITY: | |||
Other Liabilities | 704 | 646 | |
Other borrowings | 39,346 | 39,261 | |
Total liabilities | 40,050 | 39,907 | |
Stockholders' equity | 357,168 | 312,747 | |
Total liabilities and stockholders' equity | $ 397,218 | $ 352,654 |
Condensed Parent Information (I
Condensed Parent Information (Income Statement) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
INCOME: | ||
Interest income | $ 117,613 | $ 108,455 |
EXPENSES: | ||
Interest expense | 16,747 | 24,575 |
Other | 7,647 | 6,205 |
Income tax expense | (6,558) | (6,897) |
Net income | 24,332 | 26,548 |
Parent [Member] | ||
INCOME: | ||
Interest income | 0 | 0 |
Merger termination fee | 0 | 6,400 |
Total income | 0 | 6,400 |
EXPENSES: | ||
Interest expense | 2,334 | 2,341 |
Other | 1,625 | 2,755 |
Total expense | 3,959 | 5,096 |
Income (loss) before equity in undistributed earnings of subsidiaries and income tax benefit | (3,959) | 1,304 |
Income tax expense | 908 | (389) |
Income before equity in undistributed net income of subsidiaries | (3,051) | 915 |
Equity in undistributed earnings of subsidiaries | 27,383 | 25,633 |
Net income | $ 24,332 | $ 26,548 |
Condensed Parent Information (C
Condensed Parent Information (Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 24,332 | $ 26,548 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Other assets | 4,529 | (2,106) |
Other liabilities | (298) | 7,351 |
Net cash provided by operating activities | 29,069 | 29,866 |
Cash flows from investing activities: | ||
Net cash used in investing activities | (259,338) | (94,777) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 339 | 438 |
Cash dividends paid | (2,986) | (700) |
Repurchase of common stock | (4,308) | |
Net cash provided by financing activities | 528,017 | 133,060 |
Net change in cash and cash equivalents | 297,748 | 68,149 |
Cash and cash equivalents, beginning of year | 183,971 | 115,822 |
Cash and cash equivalents, end of period | 481,719 | 183,971 |
Parent [Member] | ||
Cash flows from operating activities: | ||
Net income | 24,332 | 26,548 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Equity in undistributed income of subsidiary | (27,383) | (25,633) |
Other assets | (2,417) | (1,894) |
Other liabilities | 143 | 712 |
Net cash provided by operating activities | (5,325) | (267) |
Cash flows from investing activities: | ||
Net cash paid for business combinations | (6,713) | 0 |
Equity contribution to subsidiary | 13,900 | 0 |
Net cash used in investing activities | 7,187 | 0 |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 339 | 438 |
Cash dividends paid | (2,986) | (700) |
Repurchase of common stock | (4,308) | 0 |
Net cash provided by financing activities | (6,955) | (262) |
Net change in cash and cash equivalents | (5,093) | (529) |
Cash and cash equivalents, beginning of year | 13,155 | 13,684 |
Cash and cash equivalents, end of period | $ 8,062 | $ 13,155 |