Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 30, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | SMARTFINANCIAL INC. | |
Entity Central Index Key | 1,038,773 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Trading Symbol | SMBK | |
Entity Common Stock, Shares Outstanding | 11,236,325 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and due from banks | $ 36,715,074 | $ 64,097,287 |
Interest-bearing deposits at other financial institutions | 57,891,015 | 41,965,597 |
Federal funds sold | 2,104,000 | 6,964,000 |
Total cash and cash equivalents | 96,710,089 | 113,026,884 |
Securities available for sale | 156,209,802 | 151,944,567 |
Restricted investments, at cost | 7,808,300 | 6,430,700 |
Loans, net of allowance for loan losses of $6,476,719 at March 31, 2018 and $5,860,291 at December 31, 2017 | 1,367,779,622 | 1,317,397,909 |
Bank premises and equipment, net | 44,202,080 | 43,000,249 |
Foreclosed assets | 2,665,057 | 3,254,392 |
Goodwill and core deposit intangible, net | 50,659,861 | 50,836,840 |
Cash surrender value of life insurance | 21,796,960 | 21,646,894 |
Other assets | 12,593,237 | 13,232,247 |
Total assets | 1,760,425,008 | 1,720,770,682 |
Deposits: | ||
Noninterest-bearing demand deposits | 276,248,990 | 220,520,287 |
Interest-bearing demand deposits | 278,965,430 | 231,643,508 |
Money market and savings deposits | 491,242,622 | 543,644,830 |
Time deposits | 453,276,452 | 442,774,094 |
Total deposits | 1,499,733,494 | 1,438,582,719 |
Securities sold under agreement to repurchase | 15,967,801 | 24,054,730 |
Federal Home Loan Bank advances and other borrowings | 30,000,000 | 43,600,000 |
Accrued expenses and other liabilities | 5,774,798 | 8,681,393 |
Total liabilities | 1,551,476,093 | 1,514,918,842 |
Stockholders' equity: | ||
Preferred stock - $1 par value; 2,000,000 shares authorized; None issued and outstanding as of March 31,2018 and December 31,2017 | 0 | 0 |
Common stock - $1 par value; 40,000,000 shares authorized; 11,233,806 and 11,152,561 shares issued and outstanding in 2018 and 2017, respectively | 11,233,806 | 11,152,561 |
Additional paid-in capital | 174,981,206 | 174,008,753 |
Retained earnings | 25,303,346 | 21,888,575 |
Accumulated other comprehensive loss | (2,569,443) | (1,198,049) |
Total stockholders' equity | 208,948,915 | 205,851,840 |
Total liabilities and stockholders' equity | $ 1,760,425,008 | $ 1,720,770,682 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for loan losses (in dollars) | $ 6,477,000 | $ 5,860,000 |
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 issued (in shares) | 0 | 0 |
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) | 11,233,806 | 11,152,561 |
Common stock, shares outstanding (in shares) | 11,233,806 | 11,152,561 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
INTEREST INCOME | ||
Loans, including fees | $ 18,227,880 | $ 10,215,607 |
Interest and Dividend Income, Securities, Operating, Other | 1,049,356 | 660,819 |
Federal funds sold and other earning assets | 100,818 | 72,897 |
Total interest income | 19,378,054 | 10,949,323 |
INTEREST EXPENSE | ||
Deposits | 2,401,462 | 1,097,538 |
Securities sold under agreements to repurchase | 12,496 | 15,951 |
Federal Home Loan Bank advances and other borrowings | 152,775 | 15,475 |
Total interest expense | 2,566,733 | 1,128,964 |
Net interest income before provision for loan losses | 16,811,321 | 9,820,359 |
Provision for loan losses | 688,796 | 12,450 |
Net interest income after provision for loan losses | 16,122,525 | 9,807,909 |
NONINTEREST INCOME | ||
Customer service fees | 578,003 | 264,673 |
Gain on sale of loans and other assets | 325,345 | 275,165 |
Interchange and debit card transaction fees | 145,536 | 192,394 |
Other noninterest income | 406,308 | 210,040 |
Total noninterest income | 1,455,192 | 942,272 |
NONINTEREST EXPENSES | ||
Salaries and employee benefits | 7,176,344 | 4,678,540 |
Net occupancy and equipment expense | 1,533,413 | 978,459 |
Depository insurance | 101,804 | 153,299 |
Foreclosed assets | 189,427 | 14,078 |
Advertising | 184,476 | 164,262 |
Data processing | 526,308 | 246,445 |
Professional services | 898,360 | 538,050 |
Amortization of intangible assets | 187,757 | 52,578 |
Service contracts | 478,607 | 295,629 |
Merger expenses | 497,740 | 0 |
Other operating expenses | 1,448,255 | 1,039,136 |
Total noninterest expenses | 13,222,491 | 8,160,476 |
Income before income tax expense | 4,355,226 | 2,589,705 |
Income tax expense | 940,455 | 945,854 |
Net income | 3,414,771 | 1,643,851 |
Preferred stock dividends | 0 | 195,000 |
Net income available to common stockholders | $ 3,414,771 | $ 1,448,851 |
EARNINGS PER COMMON SHARE | ||
Basic (in dollars per share) | $ 0.30 | $ 0.19 |
Diluted (in dollars per share) | $ 0.30 | $ 0.19 |
Weighted average common shares outstanding | ||
Basic (in shares) | 11,210,836 | 7,524,830 |
Diluted (in shares) | 11,324,052 | 7,631,219 |
Dividends per common share (in dollars per share) | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 3,414,771 | $ 1,643,851 |
Other comprehensive (loss) income, net of tax: | ||
Unrealized holding gains (losses) on securities arising during the period, net of tax (benefit) expense of $(445,994) and $197,831 in 2018 and 2017, respectively | (1,371,394) | 318,834 |
Total other comprehensive (loss) income | (1,371,394) | 318,834 |
Comprehensive income | $ 2,043,377 | $ 1,962,685 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized holding gains arising during the period, tax expense (benefit) | $ (445,994) | $ 197,831 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - UNAUDITED - USD ($) | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
BALANCE at Dec. 31, 2016 | $ 105,240,140 | $ 12,000 | $ 5,896,033 | $ 83,463,051 | $ 16,871,296 | $ (1,002,240) |
BALANCE (in shares) at Dec. 31, 2016 | 12,000 | 5,896,033 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 1,643,851 | 1,643,851 | ||||
Other comprehensive loss | 318,834 | 318,834 | ||||
Issuance of common stock | 33,223,653 | $ 1,840,000 | 31,383,653 | |||
Issuance of common stock (in shares) | 1,840,000 | |||||
Issuance of stock grants | 31,791 | $ 1,511 | 30,280 | |||
Issuance of stock grants (in shares) | 1,511 | |||||
Exercise of stock options | 4,260,734 | $ 473,558 | 3,787,176 | |||
Cash dividends on preferred stock | (195,000) | (195,000) | ||||
Redemption of preferred stock | (12,000,000) | $ (12,000) | (11,988,000) | |||
Redemption of preferred stock (in shares) | (12,000) | |||||
Exercise of stock options (in shares) | 473,558 | |||||
Stock option compensation expense | 26,812 | 26,812 | ||||
BALANCE at Mar. 31, 2017 | 132,550,815 | $ 0 | $ 8,211,102 | 106,702,972 | 18,320,147 | (683,406) |
BALANCE (in shares) at Mar. 31, 2017 | 0 | 8,211,102 | ||||
BALANCE at Dec. 31, 2017 | 205,851,840 | $ 11,152,561 | 174,008,753 | 21,888,575 | (1,198,049) | |
BALANCE (in shares) at Dec. 31, 2017 | 11,152,561 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 3,414,771 | 3,414,771 | ||||
Other comprehensive loss | (1,371,394) | (1,371,394) | ||||
Exercise of stock options | 950,521 | $ 81,245 | 869,276 | |||
Exercise of stock options (in shares) | 81,245 | |||||
Restricted stock compensation expense | 69,706 | 69,706 | ||||
Stock option compensation expense | 33,471 | 33,471 | ||||
BALANCE at Mar. 31, 2018 | $ 208,948,915 | $ 11,233,806 | $ 174,981,206 | $ 25,303,346 | $ (2,569,443) | |
BALANCE (in shares) at Mar. 31, 2018 | 11,233,806 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 3,414,771 | $ 1,643,851 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 932,691 | 549,186 |
Provision for loan losses | 688,796 | 12,450 |
Stock option compensation expense | 33,471 | 26,812 |
Restricted stock compensation expense | 69,706 | 0 |
Net gains from sale of loans and other assets | (325,345) | (275,165) |
Net losses from sale of foreclosed assets | 146,540 | 15,564 |
Changes in other assets and liabilities: | ||
Accrued interest receivable | (352,171) | 160,042 |
Accrued interest payable | 21,507 | 2,373 |
Other assets and liabilities | (1,453,236) | 486,433 |
Net cash provided by operating activities | 3,176,730 | 2,621,546 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from security sales, maturities, and paydowns | 5,007,826 | 5,152,054 |
Purchase of securities | (11,239,649) | (12,507,860) |
Purchase of restricted investments | (1,377,600) | 0 |
Loan originations and principal collections, net | (50,633,564) | 6,106,801 |
Purchase of bank premises and equipment | (1,789,344) | (654,044) |
Proceeds from sale of foreclosed assets | 320,417 | 39,636 |
Net cash used in investing activities | (59,711,914) | (1,863,413) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net increase (decrease) in deposits | 60,954,797 | (17,365,921) |
Net decrease in securities sold under agreements to repurchase | (8,086,929) | (3,468,587) |
Issuance of common stock | 950,521 | 37,516,178 |
Redemption of preferred stock | 0 | (12,000,000) |
Payment of dividends on preferred stock | 0 | (195,000) |
Proceeds from Federal Home Loan Bank advances and other borrowings | 65,000,000 | 60,375 |
Repayment of Federal Home Loan Bank advances and other borrowings | (78,600,000) | (18,505,765) |
Net cash provided by (used in) financing activities | 40,218,389 | (13,958,720) |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (16,316,795) | (13,200,587) |
CASH AND CASH EQUIVALENTS, beginning of year | 113,026,884 | 68,748,308 |
CASH AND CASH EQUIVALENTS, end of period | 96,710,089 | 55,547,721 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Cash paid during the period for interest | 2,545,226 | 1,126,591 |
Cash paid during the period for taxes | 0 | 0 |
NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Change in unrealized losses on securities available for sale | 1,817,388 | (516,665) |
Acquisition of real estate through foreclosure | 135,038 | 39,517 |
Financed sales of foreclosed assets | 257,416 | 0 |
Change in goodwill due to acquisition | $ 10,778 | $ 0 |
Presentation of Financial Infor
Presentation of Financial Information | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Presentation of Financial Information | Presentation of Financial Information Nature of Business: SmartFinancial, Inc. (the “Company”) is a bank holding company whose principal activity is the ownership and management of its wholly-owned subsidiary, SmartBank (the “Bank”). The Company provides a variety of financial services to individuals and corporate customers through its offices in eastern Tennessee, Alabama, Florida, and Georgia. The Company’s primary deposit products are interest-bearing demand deposits and time deposits. Its primary lending products are commercial, residential, and consumer loans. On May 22, 2017, the Company along with the Bank entered into an agreement and plan of merger with Capstone Bancshares, Inc., an Alabama corporation and Capstone Bank, an Alabama-chartered commercial bank and wholly owned subsidiary of Capstone Bancshares, Inc. which became effective on November 1, 2017. Interim Financial Information (Unaudited): The financial information in this report for March 31, 2018 and March 31, 2017 has not been audited. The information included herein should be read in conjunction with the Company’s annual consolidated financial statements and footnotes included in the Company's most recent Annual Report on Form 10-K. The consolidated financial statements presented herein conform to U.S. generally accepted accounting principles and to general industry practices. In the opinion of SmartFinancial’s management, the accompanying interim financial statements contain all material adjustments necessary to present fairly the financial condition, the results of operations, and cash flows for the interim period. Results for interim periods are not necessarily indicative of the results to be expected for a full year. Basis of Presentation and Accounting Estimates: All adjustments consisting of normal recurring accruals, that in the opinion of management, are necessary for a fair presentation of the financial position and the results of operations for the periods covered by the report have been included. The accompanying unaudited consolidated financial statements and related notes should be read in conjunction with those appearing in the most recent Annual Report previously filed on Form 10-K. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany balances and transactions have been eliminated in consolidation. In preparing the consolidated financial statements in conformity with accounting principles generally accepted in the U.S, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet, and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of foreclosed assets and deferred taxes, other-than-temporary impairments of securities, and the fair value of financial instruments. The determination of the adequacy of the allowance for loan losses is based on estimates that are particularly susceptible to significant changes in the economic environment and market conditions. In connection with the determination of the estimated losses on loans, management obtains independent appraisals for significant collateral. The Company’s loans are generally secured by specific items of collateral including real property, consumer assets, and business assets. Although the Company has a diversified loan portfolio, a substantial portion of its debtors’ ability to honor their contracts is dependent on local economic conditions. While management uses available information to recognize losses on loans, further reductions in the carrying amounts of loans may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the estimated losses on loans. Such agencies may require the Company to recognize additional losses based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the estimated losses on loans may change materially in the near term. However, the amount of the change that is reasonably possible cannot be estimated. Note 1. Presentation of Financial Information, Continued Accounting Changes: We adopted ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)” and its related amendments as of January 1, 2018 utilizing the modified retrospective approach. The implementation of the new standard did not have a material impact on the measurement or recognition of revenue; as such, a cumulative effect adjustment to opening retained earnings was not deemed necessary. Since the guidance does not apply to revenue associated with financial instruments, including loans and securities that are accounted for under other GAAP, the new guidance did not have a material impact on revenue most closely associated with financial instruments, including interest income and expense. The Company completed its overall assessment of revenue streams and review of related contracts potentially affected by the ASU, including, deposit related fees, interchange fees, merchant income, and insurance and brokerage commissions. Based on this assessment, the Company concluded that ASU 2014-09 did not materially change the method in which the Company currently recognizes revenue for these revenue streams. Under ASU 2014-09, we adopted new policies related to revenue recognition. In general, for revenue not associated with financial instruments, guarantees and lease contracts, we apply the following steps when recognizing revenue from contracts with customers: (i) identify the contract, (ii) identify the performance obligations, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations and (v) recognize revenue when performance obligation is satisfied. Our contracts with customers are generally short term in nature, typically due within one year or less or cancellable by us or our customer upon a short notice period. Performance obligations for our customer contracts are generally satisfied at a single point in time, typically when the transaction is complete, or over time. For performance obligations satisfied over time, we primarily use the output method, directly measuring the value of the products/services transferred to the customer, to determine when performance obligations have been satisfied. We typically receive payment from customers and recognize revenue concurrent with the satisfaction of our performance obligations. In most cases, this occurs within a single financial reporting period. For payments received in advance of the satisfaction of performance obligations, revenue recognition is deferred until such time the performance obligations have been satisfied. In cases where we have not received payment despite satisfaction of our performance obligations, we accrue an estimate of the amount due in the period our performance obligations have been satisfied. For contracts with variable components, only amounts for which collection is probable are accrued. We generally act in a principal capacity, on our own behalf, in most of our contracts with customers. In such transactions, we recognize revenue and the related costs to provide our services on a gross basis in our financial statements. In some cases, we act in an agent capacity, deriving revenue through assisting other entities in transactions with our customers. In such transactions, we recognized revenue and the related costs to provide our services on a net basis in our financial statements. These transactions relate to our customers' use of various interchange and ATM/debit card networks. Based on our underlying contracts, ASU 2014-09 requires us to report network costs associated with debit card and ATM transactions netted against the related fees from such transactions. Previously, such network costs were reported as a component of other noninterest expense. For the three months ended March 31, 2018, gross interchange and debit card transaction fees totaled $332.5 thousand while related network costs totaled $187.0 thousand . On a net basis, we reported $145.5 thousand as interchange and debit card transaction fees in the accompanying Consolidated Statement of Income for the three months ended March 31, 2018. For the three months ended March 31, 2017, we reported interchange and debit card transaction fees totaling $192.4 thousand on a gross basis in the accompanying Consolidated Statement of Income while related network costs totaling $86.8 thousand were reported in other operating expenses included as a component of other noninterest expense. ASU 2016-01 "Financial Instruments - Overall (Subtopic 825-10): Recognition of Financial Assets and Financial Liabilities, ("ASU 2016-01") makes targeted amendments to the guidance for recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 requires equity investments, other than equity method investments, to be measured at fair value with changes in fair value recognized in net income. The ASU requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption to reclassify the cumulative change in fair value of equity securities previously recognized in Accumulated Other Comprehensive Income. ASU 2016-01 became effective for the Company on January 1, 2018 and there was no adjustment to retained earnings. ASU 2016-01 also emphasizes the existing requirement to use exit prices to measure fair value for disclosure purposes and clarifies that entities should not make use of a practicability exception in determining the fair value of loans. Accordingly, we refined the calculation used to determine the disclosed fair value of our loans held for investment portfolio as part of adopting this standard. The refined calculation is disclosed Note 6 - Fair Value Disclosures. Note 1. Presentation of Financial Information, Continued Accounting Changes (continued): In February 2018, the FASB issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income; (“ASU 2018-02”). ASU 2018-02 amends ASC Topic 220 and allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (“Tax Reform Act”). Consequently, this amendment eliminates the stranded tax effects resulting from the Tax Reform Act and will improve the usefulness of information reported to financial statement users. However, because the amendments only related to the reclassification of the income tax effects of the Tax Reform Act, the underlying guidance that requires that the effects of the change in tax laws or rates be included in income from continuing operations is not affected. The guidance is effective for public companies for annual periods beginning on or after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. This amendment should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in U.S. federal corporate income tax rate in the Tax Reform Act is recognized. The Company early adopted this amendment in the fourth quarter of 2017 and reclassified $197 thousand from accumulated other comprehensive income to retained earnings for the stranded tax effects resulting from the Tax Reform Act. Recently Issued Accounting Pronouncements: During interim periods, the Company follows the accounting policies set forth in its annual audited financial statements for the year ended December 31, 2017 as filed with the Securities and Exchange Commission. The following is a summary of recent authoritative pronouncements not yet effective that could impact the accounting, reporting, and/or disclosure of financial information by the Company issued since December 31, 2017 . In February 2016, the FASB issued guidance that requires lessees to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability in ASU 2016-2: Leases (Topic 842). For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines. Lessor accounting is similar to the current model, but updated to align with certain changes to the lessee model and the new revenue recognition standard. Existing sale-leaseback guidance, including guidance for real estate, is replaced with a new model applicable to both lessees and lessors. The new guidance will be effective for public business entities for annual periods beginning after December 15, 2018 including interim periods within those fiscal years. The Company has several lease agreements, such as branch locations, which are currently considered operating leases, and therefore, not recognized on the Company’s consolidated statements of condition. The Company expects the new guidance will require these lease agreements to be recognized on the consolidated statements of condition as a right-of-use asset and a corresponding lease liability. Therefore, the Company’s preliminary evaluation indicates the provisions of ASU No. 2016-02 are expected to impact the Company’s consolidated statements of condition, along with our regulatory capital ratios. However, the Company continues to evaluate the extent of potential impact the new guidance will have on the Company’s consolidated financial statements. The Company is in the process of identifying a complete inventory of arrangements containing a lease and accumulating the lease data necessary to apply the amended guidance . In January 2018, the FASB issued ASU 2018-01, Leases (Topic 842) Land Easement Practical Expedient Transition to Topic 842 , an amendment to ASU 2016-2: Leases. The amendments in this Update permit an entity to elect an optional transition practical expedient to not evaluate under Topic 842 land easements that exist or expired before the entity’s adoption of Topic 842 and that were not previously accounted for as leases under Topic 840. An entity that elects this practical expedient should apply the practical expedient consistently to all of its existing or expired land easements that were not previously accounted for as leases under Topic 840. Once an entity adopts Topic 842, it should apply that Topic prospectively to all new (or modified) land easements to determine whether the arrangement should be accounted for as a lease. An entity that does not elect this practical expedient should evaluate all existing or expired land easements in connection with the adoption of the new lease requirements in Topic 842 to assess whether they meet the definition of a lease. An entity should continue to apply its current accounting policy for accounting for land easements that existed before the entity’s adoption of Topic 842. For example, if an entity currently accounts for certain land easements as leases under Topic 840, it should continue to account for those land easements as leases before its adoption of Topic 842. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in Update 2016-02, for which the company is currently evaluating the impact. Note 1. Presentation of Financial Information, Continued Recently Issued Accounting Pronouncements (continued): In June 2016, FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The ASU changed the credit loss model on financial instruments measured at amortized cost, available for sale securities and certain purchased financial instruments. Credit losses on financial instruments measured at amortized cost will be determined using a current expected credit loss model which requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. Purchased financial assets with more-than-insignificant credit deterioration since origination ("PCD assets" which are currently named "PCI Loans") measured at amortized cost will have an allowance for credit losses established at acquisition as part of the purchase price. Subsequent increases or decreases to the allowance for credit losses on PCD assets will be recognized in the income statement. Interest income should be recognized on PCD assets based on the effective interest rate, determined excluding the discount attributed to credit losses at acquisition. Credit losses relating to available-for-sale debt securities will be recognized through an allowance for credit losses. The amount of the credit loss is limited to the amount by which fair value is below amortized cost of the available-for-sale debt security. The amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years for the Company and other SEC filers. Early adoption is permitted and if early adopted, all provisions must be adopted in the same period. The amendments should be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the period adopted. A prospective approach is required for securities with other than temporary impairment recognized prior to adoption. The Company is continuing its implementation efforts through its Company-wide implementation team. The implementation team meets periodically to discuss the latest developments and ensure progress is being made. The team also keeps current on evolving interpretations and industry practices related to ASU 2016-13 via webcasts, publications, conferences, and peer bank meetings. The team continues to evaluate and validate data resources and different loss methodologies. The Company’s preliminary evaluation indicates the provisions of ASU No. 2016-13 are expected to impact the Company’s consolidated financial statements, in particular the level of the reserve for credit losses. However, the Company continues to evaluate the extent of the potential impact. In January 2017, FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The ASU simplifies the subsequent measurement of goodwill and eliminates Step 2 from the goodwill impairment test. The Company should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value. The impairment charge is limited to the amount of goodwill allocated to that reporting unit. The amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect these amendments to have a material effect on its consolidated financial statements. In March 2017, FASB issued ASU No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Topic 310-20): Premium Amortization on Purchased Callable Debt Securities. The ASU shortens the amortization period for certain callable debt securities held at a premium. The premium on individual callable debt securities shall be amortized to the earliest call date. This guidance does not apply to securities for which prepayments are estimated on a large number of similar loans where prepayments are probable and reasonably estimable. The amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. This update should be adopted on a modified retrospective basis with a cumulative-effect adjustment to retained earnings on the date of adoption. The Company does not expect these amendments to have a material effect on its consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities , which amends the hedge accounting recognition and presentation requirements in Accounting Standards Codification (ASC) 815, Derivatives and Hedging . The goals of the ASU are to (1) improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities by better aligning the entity’s financial reporting for hedging relationships with those risk management activities and (2) reduce the complexity of and simplify the application of hedge accounting by preparers . The amendments will be effective for the Company for interim and annual periods beginning after December 15, 2018. The Company does not expect these amendments to have a material effect on its consolidated financial statements. Note 1. Presentation of Financial Information, Continued Reclassifications: Certain captions and amounts in the 2017 consolidated financial statements were reclassified to conform to the 2018 presentation and these reclassifications had no impact on net income or equity as previously reported. Earnings per common share: Basic earnings per common share represents income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance (excluding tax impact). Potential common shares that may be issued by the Company relate solely to outstanding stock options, determined using the treasury stock method, and restricted stock awards, determined by the fair value of the Company's stock on date of grant. |
Earnings per share
Earnings per share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per share The following is a summary of the basic and diluted earnings per share for the three month periods ended March 31, 2018 and March 31, 2017 . Three Months Ended March 31, 2018 2017 Net income available to common shareholders $ 3,414,771 $ 1,448,851 Weighted average common shares outstanding 11,210,836 7,524,830 Effect of dilutive stock options 113,216 106,389 Diluted shares 11,324,052 7,631,219 Basic earnings per common share $ 0.30 $ 0.19 Diluted earnings per common share $ 0.30 $ 0.19 For the three months ended March 31, 2018 and 2017 , the effects of outstanding antidilutive stock options are excluded from the computation of diluted earnings per common share because the exercise price of such options is higher than the market price. There were no and 13,166 antidilutive stock options as of March 31, 2018 and 2017 , respectively. |
Securities
Securities | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities The amortized cost and fair value of securities available-for-sale at March 31, 2018 and December 31, 2017 are summarized as follows (in thousands): March 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Government-sponsored enterprises (GSEs) $ 30,147 $ — $ (844 ) $ 29,303 Municipal securities 10,141 10 (265 ) 9,886 Other debt securities 975 — (51 ) 924 Mortgage-backed securities (GSEs) 118,386 195 (2,484 ) 116,097 $ 159,649 $ 205 $ (3,644 ) $ 156,210 Note 3. Securities, Continued December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Government-sponsored enterprises (GSEs) $ 26,207 $ 1 $ (432 ) $ 25,776 Municipal securities 9,122 28 (147 ) 9,003 Other debt securities 974 — (24 ) 950 Mortgage-backed securities (GSEs) 117,263 136 (1,184 ) 116,215 $ 153,566 $ 165 $ (1,787 ) $ 151,944 At March 31, 2018 and December 31, 2017, securities with a fair value totaling approximately $83.4 million and $97.2 million, respectively were pledged to secure public funds and securities sold under agreements to repurchase. For the three months ended March 31, 2018 and March 31, 2017 , there were no available-for-sale securities sold which resulted in no realized gross gains or losses. The amortized cost and estimated fair value of securities at March 31, 2018 , by contractual maturity for non-mortgage backed securities, are shown below (in thousands). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Fair Value Due in one year or less $ 1,175 $ 1,175 Due from one year to five years 21,606 21,011 Due from five years to ten years 12,665 12,237 Due after ten years 5,817 5,690 41,263 40,113 Mortgage-backed securities 118,386 116,097 $ 159,649 $ 156,210 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 March 31, 2018 and December 31, 2017 (in thousands): As of March 31, 2018 Less than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses U.S. Government- sponsored enterprises (GSEs) $ 16,016 $ (281 ) $ 13,287 $ (563 ) $ 29,303 $ (844 ) Municipal securities 5,915 (129 ) 2,077 (136 ) 7,992 (265 ) Other debt securities — — 924 (51 ) 924 (51 ) Mortgage-backed securities (GSEs) 60,316 (1,389 ) 30,822 (1,095 ) 91,138 (2,484 ) $ 82,247 $ (1,799 ) $ 47,110 $ (1,845 ) $ 129,357 $ (3,644 ) Note 3. Securities, Continued As of December 31, 2017 Less than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses U.S. Government- sponsored enterprises (GSEs) $ 1,358 $ (1 ) $ 13,420 $ (431 ) $ 14,778 $ (432 ) Municipal securities 3,418 (43 ) 2,112 (104 ) 5,530 (147 ) Other debt securities 950 (24 ) — — 950 (24 ) Mortgage-backed securities (GSEs) 61,332 (407 ) 35,048 (777 ) 96,380 (1,184 ) $ 67,058 $ (475 ) $ 50,580 $ (1,312 ) $ 117,638 $ (1,787 ) At March 31, 2018 , the categories of temporarily impaired securities, and management’s evaluation of those securities, are as follows: U.S. Government-sponsored enterprises : At March 31, 2018 , 9 (or nine) investments in U.S. GSE securities had unrealized losses. These unrealized losses related principally to changes in market interest rates. The contractual terms of the investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Bank does not intend to sell the investments and it is more likely than not that the Bank will not be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Bank does not consider these investments to be other-than temporarily impaired at March 31, 2018 . Municipal securities : At March 31, 2018 , 19 (or nineteen) investments in obligations of municipal securities had unrealized losses. The Bank believes the unrealized losses on those investments were caused by the interest rate environment and do not relate to the underlying credit quality of the issuers. Because the Bank does not intend to sell the investments and it is not more likely than not that the Bank will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Bank does not consider these investments to be other-than temporarily impaired at March 31, 2018 . Other debt securities : At March 31, 2018 , 1 (or one) investment in other debt securities had unrealized losses. The Bank believes the unrealized loss on this investment was caused by the interest rate environment and does not relate to the underlying credit quality of the issuer. Because the Bank does not intend to sell the investment and it is not more likely than not that the Bank will be required to sell the investment before recovery of its amortized cost bases, which may be maturity, the Bank does not consider this investment to be other-than temporarily impaired at March 31, 2018 . Mortgage-backed securities : At March 31, 2018 , 63 (or sixty three) investments in residential mortgage-backed securities had unrealized losses. This impairment is believed to be caused by the current interest rate environment. The contractual cash flows of those investments are guaranteed by an agency of the U.S. Government. Because the decline in market value is attributable to the current interest rate environment and not credit quality, and because the Bank does not intend to sell the investments and it is not more likely than not that the Bank will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Bank does not deem these investments to be other-than-temporarily impaired at March 31, 2018 . |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses Portfolio Segmentation: At March 31, 2018 and December 31, 2017 , loans are summarized as follows (in thousands): March 31, 2018 December 31, 2017 PCI Loans 1 All Other Loans Total PCI Loans 1 All Other Loans Total Commercial real estate $ 16,236 $ 647,458 $ 663,694 $ 17,903 $ 625,085 $ 642,988 Consumer real estate 6,985 292,162 299,147 7,450 286,007 293,457 Construction and land development 5,003 137,701 142,704 5,120 130,289 135,409 Commercial and industrial 649 255,684 256,333 858 237,229 238,087 Consumer and other 963 11,416 12,379 1,463 11,854 13,317 Total loans 29,836 1,344,421 1,374,257 32,794 1,290,464 1,323,258 Less: Allowance for loan losses — (6,477 ) (6,477 ) (16 ) (5,844 ) (5,860 ) Loans, net $ 29,836 $ 1,337,944 $ 1,367,780 $ 32,778 $ 1,284,620 $ 1,317,398 1 Purchased Credit Impaired loans (“PCI loans”) are loans with evidence of credit deterioration at purchase. For purposes of the disclosures required pursuant to the adoption of ASC 310, the loan portfolio was disaggregated into segments. A portfolio segment is defined as the level at which an entity develops and documents a systematic method for determining its allowance for credit losses. There are five loan portfolio segments that include commercial real estate, consumer real estate, construction and land development, commercial and industrial, and consumer and other. The following describe risk characteristics relevant to each of the portfolio segments: Commercial Real Estate: Commercial real estate loans include owner-occupied commercial real estate loans and loans secured by income-producing properties. Owner-occupied commercial real estate loans to operating businesses are long-term financing of land and buildings. These loans are repaid by cash flow generated from the business operation. Real estate loans for income-producing properties such as apartment buildings, office and industrial buildings, and retail shopping centers are repaid from rent income derived from the properties. Loans within this portfolio segment are particularly sensitive to the valuation of real estate. Consumer Real Estate: Consumer real estate loans include real estate loans secured by first liens, second liens, or open end real estate loans, such as home equity lines. These are repaid by various means such as a borrower's income, sale of the property, or rental income derived from the property. One to four family first mortgage loans are repaid by various means such as a borrower's income, sale of the property, or rental income derived from the property. Loans within this portfolio segment are particularly sensitive to the valuation of real estate. Construction and Land Development: Loans for real estate construction and development are repaid through cash flow related to the operations, sale or refinance of the underlying property. This portfolio segment includes extensions of credit to real estate developers or investors where repayment is dependent on the sale of the real estate or income generated from the real estate collateral. Loans within this portfolio segment are particularly sensitive to the valuation of real estate. Commercial and Industrial: The commercial and industrial loan portfolio segment includes commercial, financial, and agricultural loans. These loans include those loans to commercial customers for use in normal business operations to finance working capital needs, equipment purchases, or expansion projects. Loans are repaid by business cash flows. Collection risk in this portfolio is driven by the creditworthiness of the underlying borrower, particularly cash flows from the customers' business operations. Consumer and Other: The consumer loan portfolio segment includes direct consumer installment loans, overdrafts and other revolving credit loans, and educational loans. Loans in this portfolio are sensitive to unemployment and other key consumer economic measures. Note 4. Loans and Allowance for Loan Losses, Continued Credit Risk Management: The Company employs a credit risk management process with defined policies, accountability and routine reporting to manage credit risk in the loan portfolio segments. Credit risk management is guided by credit policies that provide for a consistent and prudent approach to underwriting and approvals of credits. Within the Credit Policy, procedures exist that elevate the approval requirements as credits become larger and more complex. All loans are individually underwritten, risk-rated, approved, and monitored. Responsibility and accountability for adherence to underwriting policies and accurate risk ratings lies in each portfolio segment. For the consumer real estate and consumer and other portfolio segments, the risk management process focuses on managing customers who become delinquent in their payments. For the other portfolio segments, the risk management process focuses on underwriting new business and, on an ongoing basis, monitoring the credit of the portfolios, including a third party review of the largest credits on an annual basis or more frequently as needed. To ensure problem credits are identified on a timely basis, several specific portfolio reviews occur periodically to assess the larger adversely rated credits for proper risk rating and accrual status. Credit quality and trends in the loan portfolio segments are measured and monitored regularly. Detailed reports, by product, collateral, accrual status, etc., are reviewed by the Senior Credit Officer and the Directors Loan Committee. The allowance for loan losses is a valuation reserve allowance established through provisions for loan losses charged against income. The allowance for loan losses, which is evaluated quarterly, is maintained at a level that management deems sufficient to absorb probable losses inherent in the loan portfolio. Loans deemed to be uncollectible are charged against the allowance for loan losses, while recoveries of previously charged-off amounts are credited to the allowance for loan losses. The allowance for loan losses is comprised of specific valuation allowances for loans evaluated individually for impairment and general allocations for pools of homogeneous loans with similar risk characteristics and trends. The allowance for loan losses related to specific loans is based on management's estimate of potential losses on impaired loans as determined by (1) the present value of expected future cash flows; (2) the fair value of collateral if the loan is determined to be collateral dependent or (3) the loan's observable market price. The Company's homogeneous loan pools include commercial real estate loans, consumer real estate loans, construction and land development loans, commercial and industrial loans, and consumer and other loans. The general allocations to these loan pools are based on the historical loss rates for specific loan types and the internal risk grade, if applicable, adjusted for both internal and external qualitative risk factors. The qualitative factors considered by management include, among other factors, (1) changes in local and national economic conditions; (2) changes in asset quality; (3) changes in loan portfolio volume; (4) the composition and concentrations of credit; (5) the impact of competition on loan structuring and pricing; (6) the impact of interest rate changes on portfolio risk and (7) effectiveness of the Company's loan policies, procedures and internal controls. The total allowance established for each homogeneous loan pool represents the product of the historical loss ratio adjusted for qualitative factors and the total dollar amount of the loans in the pool. Note 4. Loans and Allowance for Loan Losses, Continued Credit Risk Management (continued): The composition of loans by loan classification for impaired and performing loan status at March 31, 2018 and December 31, 2017 , is summarized in the tables below (in thousands): March 31, 2018 Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Performing loans $ 646,908 $ 290,556 $ 137,154 $ 255,472 $ 11,304 $ 1,341,394 Impaired loans 550 1,606 547 212 112 3,027 647,458 292,162 137,701 255,684 11,416 1,344,421 PCI loans 16,236 6,985 5,003 649 963 29,836 Total $ 663,694 $ 299,147 $ 142,704 $ 256,333 $ 12,379 $ 1,374,257 December 31, 2017 Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Performing loans $ 624,638 $ 284,585 $ 129,742 $ 237,016 $ 11,842 $ 1,287,823 Impaired loans 447 1,422 547 213 12 2,641 625,085 286,007 130,289 237,229 11,854 1,290,464 PCI loans 17,903 7,450 5,120 858 1,463 32,794 Total loans $ 642,988 $ 293,457 $ 135,409 $ 238,087 $ 13,317 $ 1,323,258 The following tables show the allowance for loan losses allocation by loan classification for impaired, PCI, and performing loans as of March 31, 2018 and December 31, 2017 (in thousands): March 31, 2018 Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Performing loans $ 2,925 $ 1,327 $ 627 $ 1,111 $ 118 $ 6,108 Impaired loans — 192 — 99 78 369 Total $ 2,925 $ 1,519 $ 627 $ 1,210 $ 196 $ 6,477 December 31, 2017 Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Performing loans $ 2,444 $ 1,340 $ 521 $ 890 $ 204 $ 5,399 PCI loans 16 — — — — 16 Impaired loans 5 256 — 172 12 445 Total $ 2,465 $ 1,596 $ 521 $ 1,062 $ 216 $ 5,860 There was no allowance for PCI loans at March 31, 2018 . Note 4. Loans and Allowance for Loan Losses, Continued Credit Risk Management (continued): The following tables detail the changes in the allowance for loan losses for the three month period ending March 31, 2018 and year ending December 31, 2017 , by loan classification (in thousands): March 31, 2018 Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Beginning balance $ 2,465 $ 1,596 $ 521 $ 1,062 $ 216 $ 5,860 Loans charged off (38 ) — — (78 ) (42 ) (158 ) Recoveries of loans charged off — 23 2 40 21 86 Provision (reallocation) charged to expense 498 (100 ) 104 186 1 689 Ending balance $ 2,925 $ 1,519 $ 627 $ 1,210 $ 196 $ 6,477 December 31, 2017 Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Beginning balance $ 2,369 $ 1,382 $ 717 $ 520 $ 117 $ 5,105 Loans charged off — (111 ) — (24 ) (141 ) (276 ) Recoveries of charge-offs 8 99 13 67 61 248 Provision (reallocation) charged to expense 88 226 (209 ) 499 179 783 Ending balance $ 2,465 $ 1,596 $ 521 $ 1,062 $ 216 $ 5,860 A description of the general characteristics of the risk grades used by the Company is as follows: Pass: Loans in this risk category involve borrowers of acceptable-to-strong credit quality and risk who have the apparent ability to satisfy their loan obligations. Loans in this risk grade would possess sufficient mitigating factors, such as adequate collateral or strong guarantors possessing the capacity to repay the debt if required, for any weakness that may exist. Special Mention: Loans in this risk grade are the equivalent of the regulatory definition of "Other Assets Especially Mentioned" classification. Loans in this category possess some credit deficiency or potential weakness, which requires a high level of management attention. Potential weaknesses include declining trends in operating earnings and cash flows and /or reliance on the secondary source of repayment. If left uncorrected, these potential weaknesses may result in noticeable deterioration of the repayment prospects for the asset or in the Company's credit position. Substandard: Loans in this risk grade are inadequately protected by the borrower's current financial condition and payment capability or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the orderly repayment of debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful: Loans in this risk grade have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or orderly repayment in full, on the basis of current existing facts, conditions and values, highly questionable and improbable. Possibility of loss is extremely high, but because of certain important and reasonably specific factors that may work to the advantage and strengthening of the exposure, its classification as an estimated loss is deferred until its more exact status may be determined. Note 4. Loans and Allowance for Loan Losses, Continued Credit Risk Management (continued): Uncollectible: Loans in this risk grade are considered to be non-collectible and of such little value that their continuance as bankable assets is not warranted. This does not mean the loan has absolutely no recovery value, but rather it is neither practical nor desirable to defer writing off the loan, even though partial recovery may be obtained in the future. Charge-offs against the allowance for loan losses are taken in the period in which the loan becomes uncollectible. Consequently, the Company typically does not maintain a recorded investment in loans within this category. The following tables outline the amount of each loan classification and the amount categorized into each risk rating as of March 31, 2018 and December 31, 2017 (in thousands): March 31, 2018 Non PCI Loans Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Pass $ 645,238 $ 287,350 $ 137,154 $ 254,341 $ 11,150 $ 1,335,233 Watch 1,660 3,227 — 1,154 127 6,168 Special mention — 12 — — — 12 Substandard 560 1,573 547 169 114 2,963 Doubtful — — — 20 25 45 Total $ 647,458 $ 292,162 $ 137,701 $ 255,684 $ 11,416 $ 1,344,421 PCI Loans Pass $ 13,474 $ 4,257 $ 4,008 $ 99 $ 843 $ 22,681 Watch 1,590 1,281 651 3 21 3,546 Special mention — — — 59 — 59 Substandard 1,172 1,447 344 475 99 3,537 Doubtful — — — 13 — 13 Total $ 16,236 $ 6,985 $ 5,003 $ 649 $ 963 $ 29,836 Total loans $ 663,694 $ 299,147 $ 142,704 $ 256,333 $ 12,379 $ 1,374,257 Note 4. Loans and Allowance for Loan Losses, Continued Credit Risk Management (continued): December 31, 2017 Non PCI Loans Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Pass $ 616,028 $ 279,464 $ 129,359 $ 233,942 $ 11,624 $ 1,270,417 Watch 7,673 2,543 383 3,007 62 13,668 Special mention 1,006 2,627 — 64 155 3,852 Substandard 378 1,159 547 157 — 2,241 Doubtful — 214 — 59 13 286 Total $ 625,085 $ 286,007 $ 130,289 $ 237,229 $ 11,854 $ 1,290,464 PCI Loans Pass $ 14,386 $ 4,151 $ 4,134 $ 68 $ 819 $ 23,558 Watch 261 1,345 649 120 262 2,637 Special mention — 456 — 58 24 538 Substandard 3,084 1,192 337 588 107 5,308 Doubtful 172 306 — 24 251 753 Total $ 17,903 $ 7,450 $ 5,120 $ 858 $ 1,463 $ 32,794 Total loans $ 642,988 $ 293,457 $ 135,409 $ 238,087 $ 13,317 $ 1,323,258 Past Due Loans: A loan is considered past due if any required principal and interest payments have not been received as of the date such payments were required to be made under the terms of the loan agreement. Generally, management places a loan on nonaccrual when there is a clear indicator that the borrower’s cash flow may not be sufficient to meet payments as they become due, which is generally when a loan is 90 days past due. The following tables present the aging of the recorded investment in loans as of March 31, 2018 and December 31, 2017 (in thousands): March 31, 2018 30-89 Days Past Due and Accruing Past Due 90 Days or More and Accruing Nonaccrual Total Past Due and NonAccrual PCI Loans Current Loans Total Loans Commercial real estate $ 1,039 $ 165 $ 6 $ 1,210 $ 16,236 $ 646,248 $ 663,694 Consumer real estate 458 130 1,085 1,673 6,985 290,489 299,147 Construction and land development 238 334 547 1,119 5,003 136,582 142,704 Commercial and industrial 315 138 83 536 649 255,148 256,333 Consumer and other 103 31 90 224 963 11,192 12,379 Total $ 2,153 $ 798 $ 1,811 $ 4,762 $ 29,836 $ 1,339,659 $ 1,374,257 Note 4. Loans and Allowance for Loan Losses, Continued Past Due Loans (continued): December 31, 2017 30-89 Days Past Due and Accruing Past Due 90 Days or More and Accruing Nonaccrual Total Past Due and NonAccrual PCI Loans Current Loans Total Loans Commercial real estate $ 517 $ 728 $ 128 $ 1,373 $ 17,903 $ 623,712 $ 642,988 Consumer real estate 963 33 991 1,987 7,450 284,020 293,457 Construction and land development 65 326 547 938 5,120 129,351 135,409 Commercial and industrial 286 131 85 502 858 236,727 238,087 Consumer and other 165 291 13 469 1,463 11,385 13,317 Total $ 1,996 $ 1,509 $ 1,764 $ 5,269 $ 32,794 $ 1,285,195 $ 1,323,258 Impaired Loans: The following is an analysis of the impaired loan portfolio, excluding PCI loans, detailing the related allowance recorded as of March 31, 2018 and December 31, 2017 (in thousands): For the three months ended At March 31, 2018 March 31, 2018 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Impaired loans without a valuation allowance: Commercial real estate $ 550 $ 565 $ — $ 487 $ 10 Consumer real estate 889 929 — 652 5 Construction and land development 547 547 — 547 — Commercial and industrial 52 51 — 47 1 Consumer and other — — — — — 2,038 2,092 — 1,733 16 Impaired loans with a valuation allowance: Commercial real estate — — — 12 — Consumer real estate 716 729 192 862 11 Construction and land development — — — — — Commercial and industrial 161 162 99 167 1 Consumer and other 112 113 78 62 1 989 1,004 369 1,103 13 Total impaired loans $ 3,027 $ 3,096 $ 369 $ 2,836 $ 29 Note 4. Loans and Allowance for Loan Losses, Continued Impaired Loans (continued): For the year ended At December 31, 2017 December 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Impaired loans without a valuation allowance: Commercial real estate $ 424 $ 454 $ — $ 204 $ 44 Consumer real estate 415 420 — 401 16 Construction and land development 547 547 — 628 — Commercial and industrial 41 41 — 44 3 Consumer and other — — — — — 1,427 1,462 — 1,277 63 Impaired loans with a valuation allowance: Commercial real estate 23 23 5 5 1 Consumer real estate 1,007 1,033 256 601 38 Construction and land development — — — — — Commercial and industrial 172 172 172 117 10 Consumer and other 12 13 12 2 1 1,214 1,241 445 725 50 PCI loans: Commercial real estate 16 123 16 3 16 Total impaired loans $ 2,657 $ 2,826 $ 461 $ 2,005 $ 129 Troubled Debt Restructurings: At March 31, 2018 and December 31, 2017 , impaired loans included loans that were classified as Troubled Debt Restructurings ("TDRs"). The restructuring of a loan is considered a TDR if both (i) the borrower is experiencing financial difficulties and (ii) the creditor has granted a concession. In assessing whether or not a borrower is experiencing financial difficulties, the Company considers information currently available regarding the financial condition of the borrower. This information includes, but is not limited to, whether (i) the debtor is currently in payment default on any of its debt; (ii) a payment default is probable in the foreseeable future without the modification; (iii) the debtor has declared or is in the process of declaring bankruptcy; and (iv) the debtor's projected cash flow is sufficient to satisfy contractual payments due under the original terms of the loan without a modification. The Company considers all aspects of the modification to loan terms to determine whether or not a concession has been granted to the borrower. Key factors considered by the Company include the debtor's ability to access funds at a market rate for debt with similar risk characteristics, the significance of the modification relative to unpaid principal balance or collateral value of the debt, and the significance of a delay in the timing of payments relative to the original contractual terms of the loan. Note 4. Loans and Allowance for Loan Losses, Continued Troubled Debt Restructurings (continued): 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 March 31, 2018 and December 31, 2017 , management had approximately, $40 thousand and $41 thousand, respectively, in loans that met the criteria for restructured, none of which were on nonaccrual. A loan is placed back on accrual status when both principal and interest are current and it is probable that management will be able to collect all amounts due (both principal and interest) according to the terms of the loan agreement. There were no loans that were modified as troubled debt restructurings during the three month period ended March 31, 2018 or during the twelve month period ended December 31, 2017. There were no loans that were modified as troubled debt restructurings during the past three months and for which there was a subsequent payment default. Foreclosure Proceedings and Balances : As of March 31, 2018 the company had $681 thousand in residential real estate included in foreclosed assets and consumer mortgage loans collateralized by residential real estate property that were in the process of foreclosure totaled $201 thousand . Purchased Credit Impaired Loans: The Company has acquired loans which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of those loans as of is as follows (in thousands): March 31, 2018 December 31, 2017 Commercial real estate $ 21,866 $ 23,366 Consumer real estate 9,849 10,764 Construction and land development 6,109 6,285 Commercial and industrial 1,191 1,452 Consumer and other 1,277 1,710 Total loans 40,292 43,577 Less remaining purchase discount (10,456 ) (10,783 ) Total loans, net of purchase discount 29,836 32,794 Less: Allowance for loan losses — (16 ) Carrying amount, net of allowance $ 29,836 $ 32,778 Activity related to the accretable yield on loans acquired with deteriorated credit quality is as follows for the three months period ended March 31, 2018 and 2017 (in thousands): Three Months Ended Three Months Ended Accretable yield, beginning of period $ 9,287 $ 8,950 Additions — — Accretion income (1,101 ) (697 ) Reclassification to accretable 262 244 Other changes, net (668 ) (15 ) Accretable yield $ 7,780 $ 8,482 |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities Off Balance Sheet Arrangements: In the normal course of business, the Bank has entered into off-balance sheet financial instruments which include commitments to extend credit (i.e., including unfunded lines of credit) and standby letters of credit. Commitments to extend credit are usually the result of lines of credit granted to existing borrowers under agreements that the total outstanding indebtedness will not exceed a specific amount during the term of the indebtedness. Typical borrowers are commercial concerns that use lines of credit to supplement their treasury management functions; thus their total outstanding indebtedness may fluctuate during any time period based on the seasonality of their business and the resultant timing of their cash flows. Other typical lines of credit are related to home equity loans granted to consumers. Commitments to extend credit generally have fixed expiration dates or other termination clauses and may require payment of a fee. Standby letters of credit are generally issued on behalf of an applicant (our client) to a specifically named beneficiary and are the result of a particular business arrangement that exists between the applicant and the beneficiary. Standby letters of credit have fixed expiration dates and are usually for terms of two years or less unless terminated beforehand due to criteria specified in the standby letter of credit. A typical arrangement involves the applicant routinely being indebted to the beneficiary for such items as inventory purchases, insurance, utilities, lease guarantees or other third party commercial transactions. The standby letter of credit would permit the beneficiary to obtain payment from the Bank under certain prescribed circumstances. Subsequently, the Bank would seek reimbursement from the applicant pursuant to the terms of the standby letter of credit. The Bank follows the same credit policies and underwriting practices when making these commitments as it does for on-balance sheet instruments. Each client’s creditworthiness is evaluated on a case-by-case basis, and the amount of collateral obtained, if any, is based on management’s credit evaluation of the customer. Collateral held varies but may include cash, real estate and improvements, marketable securities, accounts receivable, inventory, equipment and personal property. The contractual amounts of these commitments are not reflected in the consolidated financial statements and would only be reflected if drawn upon. Since many of the commitments are expected to expire without being drawn upon, the contractual amounts do not necessarily represent future cash requirements. However, should the commitments be drawn upon and should customers default on their resulting obligation to the Bank the maximum exposure to credit loss, without consideration of collateral, is represented by the contractual amount of those instruments. A summary of the Bank’s total contractual amount for all off-balance sheet commitments at March 31, 2018 is as follows: Commitments to extend credit $ 256.2 million Standby letters of credit $ 3.1 million Various legal claims also arise from time to time in the normal course of business. In the opinion of management, the resolution of claims outstanding at March 31, 2018 will not have a material effect on SmartFinancial’s consolidated financial statements. |
Fair Value Disclosures
Fair Value Disclosures | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Disclosures Determination of Fair Value: The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In accordance with the “Fair Value Measurements and Disclosures” ASC Topic 820, the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. ASC Topic 820 provides a consistent definition of fair value, which focuses on exit price in an orderly transaction between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. Fair Value Hierarchy: In accordance with this guidance, the Company groups its financial assets and financial liabilities generally measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Level 1 - Valuation is based on quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 assets and liabilities generally include debt and equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2 - Valuation is based on inputs other than quoted prices included within Level I that are observable for the asset or liability, either directly or indirectly. The valuation may be based on quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. Level 3 - Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which determination of fair value requires significant management judgment or estimation. A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following methods and assumptions were used by the Company in estimating fair value disclosures for financial instruments: Cash and Cash Equivalents: For cash and due from banks, interest-bearing deposits, and federal funds sold, the carrying amount is a reasonable estimate of fair value based on the short-term nature of the assets and are considered Level 1 inputs. Securities Available for Sale: Where quoted prices are available in an active market, management classifies the securities within Level 1 of the valuation hierarchy. If quoted market prices are not available, management estimates fair values using pricing models that use observable inputs or quoted prices at securities with similar characteristics. Examples of such instruments, which would generally be classified within Level 2 of the valuation hierarchy, including GSE obligations, corporate bonds, and other securities. Mortgage-backed securities are included in Level 2 if observable inputs are available. In certain cases where there is limited activity or less transparency around inputs to the valuation, management classifies those securities in Level 3. Restricted Investments: It is not practicable to determine the fair value of restricted investments due the restrictions placed on its transferability. Note 6. Fair Value Disclosures, Continued Fair Value Hierarchy (continued): Loans: With the adoption of ASU 2016-01 on January 1, 2018, we refined our methodology to estimate the fair value of our loan portfolio to use the exit price notion as required by the ASU. The guidance was applied on a prospective approach resulting in prior-periods no longer being comparable. See “Note 1 – Presentation of Financial Information” for further information. For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. Fair value for fixed rate loans are estimated using discounted cash flow analyses, using market interest rates for comparable loans. Fair values for nonperforming loans are estimated using discounted cash flow analyses or underlying collateral values, where applicable. These methods are considered Level 3 inputs. Deposits: The fair values disclosed for demand deposits (for example, interest and noninterest checking, savings, and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (that is, their carrying amounts) and are considered Level 2 inputs. Fair values for fixed-rate time deposits are estimated using a discounted cash flow calculation that applies market interest rates on comparable instruments to a schedule of aggregated expected monthly maturities on time deposits, and are considered Level 2 inputs. Securities Sold Under Agreement to Repurchase: The carrying value of these liabilities approximates their fair value, and are considered Level 1 inputs. Federal Home Loan Bank Advances and Other Borrowings: The fair value of the FHLB fixed rate borrowings are estimated using discounted cash flows, based on the current incremental borrowing rates for similar types of borrowing arrangements, and are considered Level 2 inputs. The carrying value of FHLB floating rate borrowings and floating rate other borrowings approximates their fair value and are considered Level 1 inputs. Commitments to Extend Credit and Standby Letters of Credit: Because commitments to extend credit and standby letters of credit are made using variable rates and have short maturities, the carrying value and the fair value are immaterial for disclosure. Measurements of Fair Value: Assets and liabilities recorded at fair value on a recurring basis are as follows (in thousands): Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Debt securities available-for-sale: U.S. Government-sponsored enterprises (GSEs) $ 29,303 $ — $ 29,303 $ — Mortgage-backed securities 116,097 — 116,097 — Other debt securities 924 — 924 — Municipal securities 9,886 — 9,886 — Total securities available-for-sale $ 156,210 $ — $ 156,210 $ — Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Debt securities available-for-sale: U.S. Government-sponsored enterprises (GSEs) $ 25,776 $ — $ 25,776 $ — Mortgage-backed securities 116,215 — 116,215 — Other debt securities 950 — 950 — Municipal securities 9,003 — 9,003 — Total securities available-for-sale $ 151,944 $ — $ 151,944 $ — Note 6. Fair Value Disclosures, Continued Measurements of Fair Value (continued): The Company has no assets or liabilities whose fair values are measured on a recurring basis using Level 3 inputs. Additionally, there were no transfers between Level 1 and Level 2 in the fair value hierarchy. Assets Measured at Fair Value on a Nonrecurring Basis: Under certain circumstances management makes adjustments to fair value for assets and liabilities although they are not measured at fair value on an ongoing basis. The following tables present the financial instruments carried on the consolidated balance sheets by caption and by level in the fair value hierarchy, for which a nonrecurring change in fair value has been recorded (in thousands): Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Impaired loans $ 620 $ — $ — $ 620 Foreclosed assets 2,665 — — 2,665 Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Impaired loans $ 769 $ — $ — $ 769 Foreclosed assets 3,254 — — 3,254 For Level 3 assets measured at fair value on a non-recurring basis as of March 31, 2018 and December 31, 2017, , the significant unobservable inputs used in the fair value measurements are presented below (in thousands). Balance as of Valuation Significant Other Weighted Impaired loans $ 620 Appraisal Appraisal Discounts 37 % Foreclosed assets 2,665 Appraisal Appraisal Discounts 21 % Balance as of Valuation Significant Other Weighted Impaired loans $ 769 Appraisal Appraisal Discounts 36 % Foreclosed assets 3,254 Appraisal Appraisal Discounts 18 % Impaired Loans: Loans considered impaired under ASC 310-10-35, Receivables , are loans for which, based on current information and events, it is probable that the Company will be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan agreement. Impaired loans can be measured based on the present value of expected payments using the loan’s original effective rate as the discount rate, the loan’s observable market price, or the fair value of the collateral less selling costs if the loan is collateral dependent. The fair value of impaired loans were measured based on the value of the collateral securing these loans or the discounted cash flows of the loans, as applicable. Impaired loans are classified within Level 3 of the fair value hierarchy. Collateral may be real estate and/or business assets including equipment, inventory, and/or accounts receivable. The Company determines the value of the collateral based on independent appraisals performed by qualified licensed appraisers. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Appraised values are discounted for costs to sell and may be discounted further based on management’s historical knowledge, changes in market conditions from the date of the most recent appraisal, and/or management’s expertise and knowledge of the customer and the customer’s business. Such discounts by management are subjective and are typically significant unobservable inputs for determining fair value. Impaired loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly, based on the same factors discussed above. Note 6. Fair Value Disclosures, Continued Assets Measured at Fair Value on a Nonrecurring Basis (consintued): Foreclosed assets: Foreclosed assets, consisting of properties obtained through foreclosure or in satisfaction of loans, are initially recorded at fair value less estimated costs to sell upon transfer of the loans to other real estate. Subsequently, other real estate is carried at the lower of carrying value or fair value less costs to sell. Fair values are generally based on third party appraisals of the property and are classified within Level 3 of the fair value hierarchy. The appraisals are sometimes further discounted based on management’s historical knowledge, and/or changes in market conditions from the date of the most recent appraisal, and/or management’s expertise and knowledge of the customer and the customer’s business. Such discounts are typically significant unobservable inputs for determining fair value. In cases where the carrying amount exceeds the fair value, less estimated costs to sell, a loss is recognized in noninterest expense. Carrying value and estimated fair value: The carrying amount and estimated fair value of the Company’s financial instruments at March 31, 2018 and December 31, 2017 are as follows (in thousands): March 31, 2018 Fair Value Measurements Using Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value Assets: Cash and cash equivalents $ 96,710 96,710 — — $ 96,710 Securities available for sale 156,210 — 156,210 — 156,210 Restricted investments 7,808 N/A N/A N/A N/A Loans, net 1,367,780 — — 1,373,919 1,373,919 Liabilities: Noninterest-bearing demand deposits 276,249 — 276,249 — 276,249 Interest-bearing demand deposits 278,965 — 278,965 — 278,965 Money Market and Savings deposits 491,243 — 491,243 — 491,243 Time deposits 453,276 — 453,943 — 453,943 Securities sold under agreements to repurchase 15,968 — 15,968 — 15,968 Federal Home Loan Bank advances and other borrowings 30,000 — 30,000 — 30,000 Note 6. Fair Value Disclosures, Continued Carrying value and estimated fair value (continued): December 31, 2017 Fair Value Measurements Using Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value Assets: Cash and cash equivalents $ 113,027 113,027 — — $ 113,027 Securities available for sale 151,944 — 151,944 — 151,944 Restricted investments 6,431 N/A N/A N/A N/A Loans, net 1,317,398 — — 1,292,303 1,292,303 Liabilities: Noninterest-bearing demand deposits 220,520 — 220,520 — 250,520 Interest-bearing demand deposits 231,644 — 231,644 — 231,644 Money Market and Savings deposits 543,645 — 543,645 — 543,645 Time deposits 442,774 — 443,547 — 443,547 Securities sold under agreements to repurchase 24,055 — 24,055 — 24,055 Federal Home Loan Bank advances and other borrowings 43,600 — 43,600 — 43,600 Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on many judgments. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial instruments include deferred income taxes and premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. |
Small Business Lending Fund
Small Business Lending Fund | 3 Months Ended |
Mar. 31, 2018 | |
Small Business Lending Fund [Abstract] | |
Small Business Lending Fund | Small Business Lending Fund In connection with the Company's merger with Legacy SmartFinancial, Inc. in 2015, the company assumed Legacy SmartFinancial's obligations under that certain stock purchase agreement with the U.S. Department of the Treasury and issued 12,000 shares of preferred stock at $1,000 per share under the Small Business Lending Fund Program (the " SBLF Program ").The Company paid cash dividends at a one percent rate or $120,000 for the year ended December 31, 2015 on the preferred shares. On February 4, 2016 the dividend rate for the preferred shares increased to nine percent and as a result the company incurred preferred stock dividends of $1,022,000 for the year ended December 31, 2016 . On January 30, 2017, the Company completed a public offering of 2,010,084 shares of its common stock with the net proceeds to the Company of approximately $33.2 million . On March 6, 2017 the Company used proceeds from the offering to redeem the $12 million of preferred stock and pay the $195 thousand accrued dividend. |
Business Combination
Business Combination | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Business Combination | Business Combination On December 8, 2016, the Bank entered into a purchase and assumption agreement with Atlantic Capital Bank, N.A. that provided for the acquisition and assumption by the Bank of certain assets and liabilities associated with Atlantic Capital Bank’s branch office located at 3200 Keith Street NW, Cleveland, Tennessee 37312. The purchase was completed on May 19, 2017 for total cash consideration of $1.2 million. The assets and liabilities as of the effective date of the transaction were recorded at their respective estimated fair values. The excess of the purchase price over the net estimated fair values of the acquired assets and liabilities was allocated to identifiable intangible assets with the remaining excess allocated to goodwill. In the periods following the acquisition, the financial statements will include the results attributable to the Cleveland branch purchase beginning on the date of purchase. For the three months period ended March 31, 2018 , the revenues and net income attributable to the Cleveland branch were $309 thousand. It is impracticable to determine the pro-forma impact to the 2017 revenues and net income if the acquisition had occurred on January 1, 2017 as the Company does not have access to those records for a single branch. The following table details the financial impact of the transaction, including the allocation of the purchase price to the fair values of net assets assumed and goodwill recognized: Allocation of Purchase Price (in thousands) Total consideration in cash $ 1,183 Fair value of assets acquired and liabilities assumed: Cash and cash equivalents 133 Loans 24,073 Premises and equipment 2,839 Core deposit intangible 310 Prepaid and other assets 77 Deposits (26,888 ) Payables and other liabilities (21 ) Total fair value of net assets acquired 523 Goodwill $ 660 As of March 31, 2018 there have not been any changes to the initial fair values recorded as part of the business combination. On May 22, 2017, the shareholders of the Company approved a merger with Capstone Bancshares, Inc. ("Capstone"), the one bank holding company of Capstone Bank, which became effective November 1, 2017. Capstone shareholders received either: (a) 0.85 shares of common stock, (b) $18.50 in cash, or (c) a combination of 80% common stock and 20% cash. Elections were limited by the requirement that 80% of the total shares of Capstone common stock be exchanged for common stock and 20% be exchanged for cash. Therefore, the allocation of common stock and cash that a Capstone shareholder received depended on the elections of other Capstone shareholders, and were allocated in accordance with the procedures set forth in the merger agreement. Capstone shareholders also received cash instead of any fractional shares they would have otherwise received in the merger. After the merger, shareholders of SmartFinancial owned approximately 74% of the outstanding common stock of the combined entity on a fully diluted basis, after taking into account the exchange ratio. The merger is being accounted for using the acquisition method of accounting, in accordance with the provisions of FASB ASC 805-10 Business Combinations. Under this guidance, for accounting purposes, the Company is considered the acquirer in the merger, and as a result the historical financial statements of the combined entity are the historical consolidated financial statements of the Company. The merger was effected by the issuance of shares of SmartFinancial stock along with cash consideration to shareholders of Capstone. The assets and liabilities of Capstone as of the effective date of the merger were recorded at their respective estimated fair values and combined with those of SmartFinancial. The excess of the purchase price over the net estimated fair values of the acquired assets and liabilities was allocated to identifiable intangible assets with the remaining excess allocated to goodwill. Goodwill from the transaction was $38.0 million , none of which is deductible for income tax purposes. Note 8. Business Combination, Continued In periods following the merger, the financial statements of the combined entity will include the results attributable to Capstone beginning on the date the merger was completed. In the period ended March 31, 2018, the revenues and net income attributable to Capstone were $6.8 million and $2.5 million , respectively. The pro-forma impact to 2017 revenues and net income if the merger had occurred on December 31, 2016 would have been $25.2 million and $1.3 million , respectively. While certain adjustments were made for the estimated impact of certain fair value adjustments, they are not indicative of what would have occurred had the merger taken place on the indicated date nor are they intended to represent or be indicative of future results of operations. In particular, no adjustments have been made to eliminate the amount of Capstone's provision for credit losses for the first three months of 2017 that may not have been necessary had the acquired loans been recorded at fair value as of the beginning of 2017. There were no material, nonrecurring pro forma adjustments included in the reported proforma revenue and earnings. The fair value estimates of Capstone’s assets and liabilities recorded are preliminary and subject to refinement as additional information becomes available. Under current accounting principles, the Company’s estimates of fair values may be adjusted for a period of up to one year from the acquisition date. As of March 31, 2018 there was a $11 thousand adjustment to reduce fair values initially recorded as part of the business combination. The following table details the financial impact of the merger, including the calculation of the purchase price, the allocation of the purchase price to the fair values of net assets assumed, and goodwill recognized: Calculation of Purchase Price Shares of SMBK common stock issued to Capstone shareholders as of November 1, 2017 2,908,094 Market price of SMBK common stock on November 1, 2017 $ 23.49 Estimated fair value of SMBK common stock issued (in thousands) 68,311 Estimated fair value of Capstone stock options (in thousands) 1,585 Cash consideration paid 15,826 Total consideration (in thousands) $ 85,722 Allocation of Purchase Price (in thousands) Total consideration above $ 85,722 Fair value of assets acquired and liabilities assumed: Cash and cash equivalents 16,810 Investment securities available for sale 51,638 Restricted investments 1,049 Loans 413,023 Premises and equipment 8,668 Bank owned life insurance 10,031 Core deposit intangible 5,530 Other real estate owned 410 Prepaid and other assets 6,360 Deposits (454,154 ) FHLB advances and other borrowings (4,887 ) Payables and other liabilities (6,803 ) Total fair value of net assets acquired 47,675 Goodwill $ 38,047 The initial accounting for Tennessee Bancshares, Inc. acquired on May 1, 2018 has not been completed. As a result the pro-forma impact to 2017 revenues and net income with certain fair value adjustments as if the merger had occurred on December 31, 2016 could not be made. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions On March 1, 2018, two directors agreed to purchase from the Company 21,250 shares of the Company's stock for the closing market price of $21.70 per share. The shares were held as collateral on a past due loan and were sold in order to pay off the loan. Steven B. Tucker purchased 6,250 shares and W. Miller Welborn purchased 15,000 shares for the benefit of a trust. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On December 12, 2017, the Company along with the Bank entered into an agreement and plan of merger with Tennessee Bancshares, Inc., a Tennessee corporation and Southern Community Bank, a Tennessee-chartered commercial bank and wholly owned subsidiary of Tennessee Bancshares. The merger was consummated on May 1, 2018 with SmartFinancial acquiring one hundred percent of Tennessee Bancshares common stock, each of which were converted into 0.8065 shares of SmartFinancial common stock. |
Presentation of Financial Inf19
Presentation of Financial Information (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | Nature of Business: SmartFinancial, Inc. (the “Company”) is a bank holding company whose principal activity is the ownership and management of its wholly-owned subsidiary, SmartBank (the “Bank”). The Company provides a variety of financial services to individuals and corporate customers through its offices in eastern Tennessee, Alabama, Florida, and Georgia. The Company’s primary deposit products are interest-bearing demand deposits and time deposits. Its primary lending products are commercial, residential, and consumer loans. |
Interim Financial Information (Unaudited) | Interim Financial Information (Unaudited): The financial information in this report for March 31, 2018 and March 31, 2017 has not been audited. The information included herein should be read in conjunction with the Company’s annual consolidated financial statements and footnotes included in the Company's most recent Annual Report on Form 10-K. The consolidated financial statements presented herein conform to U.S. generally accepted accounting principles and to general industry practices. In the opinion of SmartFinancial’s management, the accompanying interim financial statements contain all material adjustments necessary to present fairly the financial condition, the results of operations, and cash flows for the interim period. Results for interim periods are not necessarily indicative of the results to be expected for a full year. |
Basis of Presentation and Accounting Estimates | Basis of Presentation and Accounting Estimates: All adjustments consisting of normal recurring accruals, that in the opinion of management, are necessary for a fair presentation of the financial position and the results of operations for the periods covered by the report have been included. The accompanying unaudited consolidated financial statements and related notes should be read in conjunction with those appearing in the most recent Annual Report previously filed on Form 10-K. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany balances and transactions have been eliminated in consolidation. In preparing the consolidated financial statements in conformity with accounting principles generally accepted in the U.S, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet, and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of foreclosed assets and deferred taxes, other-than-temporary impairments of securities, and the fair value of financial instruments. The determination of the adequacy of the allowance for loan losses is based on estimates that are particularly susceptible to significant changes in the economic environment and market conditions. In connection with the determination of the estimated losses on loans, management obtains independent appraisals for significant collateral. The Company’s loans are generally secured by specific items of collateral including real property, consumer assets, and business assets. Although the Company has a diversified loan portfolio, a substantial portion of its debtors’ ability to honor their contracts is dependent on local economic conditions. While management uses available information to recognize losses on loans, further reductions in the carrying amounts of loans may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the estimated losses on loans. Such agencies may require the Company to recognize additional losses based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the estimated losses on loans may change materially in the near term. However, the amount of the change that is reasonably possible cannot be estimated. |
Accounting Changes and Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements: During interim periods, the Company follows the accounting policies set forth in its annual audited financial statements for the year ended December 31, 2017 as filed with the Securities and Exchange Commission. The following is a summary of recent authoritative pronouncements not yet effective that could impact the accounting, reporting, and/or disclosure of financial information by the Company issued since December 31, 2017 . In February 2016, the FASB issued guidance that requires lessees to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability in ASU 2016-2: Leases (Topic 842). For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines. Lessor accounting is similar to the current model, but updated to align with certain changes to the lessee model and the new revenue recognition standard. Existing sale-leaseback guidance, including guidance for real estate, is replaced with a new model applicable to both lessees and lessors. The new guidance will be effective for public business entities for annual periods beginning after December 15, 2018 including interim periods within those fiscal years. The Company has several lease agreements, such as branch locations, which are currently considered operating leases, and therefore, not recognized on the Company’s consolidated statements of condition. The Company expects the new guidance will require these lease agreements to be recognized on the consolidated statements of condition as a right-of-use asset and a corresponding lease liability. Therefore, the Company’s preliminary evaluation indicates the provisions of ASU No. 2016-02 are expected to impact the Company’s consolidated statements of condition, along with our regulatory capital ratios. However, the Company continues to evaluate the extent of potential impact the new guidance will have on the Company’s consolidated financial statements. The Company is in the process of identifying a complete inventory of arrangements containing a lease and accumulating the lease data necessary to apply the amended guidance . In January 2018, the FASB issued ASU 2018-01, Leases (Topic 842) Land Easement Practical Expedient Transition to Topic 842 , an amendment to ASU 2016-2: Leases. The amendments in this Update permit an entity to elect an optional transition practical expedient to not evaluate under Topic 842 land easements that exist or expired before the entity’s adoption of Topic 842 and that were not previously accounted for as leases under Topic 840. An entity that elects this practical expedient should apply the practical expedient consistently to all of its existing or expired land easements that were not previously accounted for as leases under Topic 840. Once an entity adopts Topic 842, it should apply that Topic prospectively to all new (or modified) land easements to determine whether the arrangement should be accounted for as a lease. An entity that does not elect this practical expedient should evaluate all existing or expired land easements in connection with the adoption of the new lease requirements in Topic 842 to assess whether they meet the definition of a lease. An entity should continue to apply its current accounting policy for accounting for land easements that existed before the entity’s adoption of Topic 842. For example, if an entity currently accounts for certain land easements as leases under Topic 840, it should continue to account for those land easements as leases before its adoption of Topic 842. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in Update 2016-02, for which the company is currently evaluating the impact. Note 1. Presentation of Financial Information, Continued Recently Issued Accounting Pronouncements (continued): In June 2016, FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The ASU changed the credit loss model on financial instruments measured at amortized cost, available for sale securities and certain purchased financial instruments. Credit losses on financial instruments measured at amortized cost will be determined using a current expected credit loss model which requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. Purchased financial assets with more-than-insignificant credit deterioration since origination ("PCD assets" which are currently named "PCI Loans") measured at amortized cost will have an allowance for credit losses established at acquisition as part of the purchase price. Subsequent increases or decreases to the allowance for credit losses on PCD assets will be recognized in the income statement. Interest income should be recognized on PCD assets based on the effective interest rate, determined excluding the discount attributed to credit losses at acquisition. Credit losses relating to available-for-sale debt securities will be recognized through an allowance for credit losses. The amount of the credit loss is limited to the amount by which fair value is below amortized cost of the available-for-sale debt security. The amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years for the Company and other SEC filers. Early adoption is permitted and if early adopted, all provisions must be adopted in the same period. The amendments should be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the period adopted. A prospective approach is required for securities with other than temporary impairment recognized prior to adoption. The Company is continuing its implementation efforts through its Company-wide implementation team. The implementation team meets periodically to discuss the latest developments and ensure progress is being made. The team also keeps current on evolving interpretations and industry practices related to ASU 2016-13 via webcasts, publications, conferences, and peer bank meetings. The team continues to evaluate and validate data resources and different loss methodologies. The Company’s preliminary evaluation indicates the provisions of ASU No. 2016-13 are expected to impact the Company’s consolidated financial statements, in particular the level of the reserve for credit losses. However, the Company continues to evaluate the extent of the potential impact. In January 2017, FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The ASU simplifies the subsequent measurement of goodwill and eliminates Step 2 from the goodwill impairment test. The Company should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value. The impairment charge is limited to the amount of goodwill allocated to that reporting unit. The amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect these amendments to have a material effect on its consolidated financial statements. In March 2017, FASB issued ASU No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Topic 310-20): Premium Amortization on Purchased Callable Debt Securities. The ASU shortens the amortization period for certain callable debt securities held at a premium. The premium on individual callable debt securities shall be amortized to the earliest call date. This guidance does not apply to securities for which prepayments are estimated on a large number of similar loans where prepayments are probable and reasonably estimable. The amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. This update should be adopted on a modified retrospective basis with a cumulative-effect adjustment to retained earnings on the date of adoption. The Company does not expect these amendments to have a material effect on its consolidated financial statements. Accounting Changes: We adopted ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)” and its related amendments as of January 1, 2018 utilizing the modified retrospective approach. The implementation of the new standard did not have a material impact on the measurement or recognition of revenue; as such, a cumulative effect adjustment to opening retained earnings was not deemed necessary. Since the guidance does not apply to revenue associated with financial instruments, including loans and securities that are accounted for under other GAAP, the new guidance did not have a material impact on revenue most closely associated with financial instruments, including interest income and expense. The Company completed its overall assessment of revenue streams and review of related contracts potentially affected by the ASU, including, deposit related fees, interchange fees, merchant income, and insurance and brokerage commissions. Based on this assessment, the Company concluded that ASU 2014-09 did not materially change the method in which the Company currently recognizes revenue for these revenue streams. Under ASU 2014-09, we adopted new policies related to revenue recognition. In general, for revenue not associated with financial instruments, guarantees and lease contracts, we apply the following steps when recognizing revenue from contracts with customers: (i) identify the contract, (ii) identify the performance obligations, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations and (v) recognize revenue when performance obligation is satisfied. Our contracts with customers are generally short term in nature, typically due within one year or less or cancellable by us or our customer upon a short notice period. Performance obligations for our customer contracts are generally satisfied at a single point in time, typically when the transaction is complete, or over time. For performance obligations satisfied over time, we primarily use the output method, directly measuring the value of the products/services transferred to the customer, to determine when performance obligations have been satisfied. We typically receive payment from customers and recognize revenue concurrent with the satisfaction of our performance obligations. In most cases, this occurs within a single financial reporting period. For payments received in advance of the satisfaction of performance obligations, revenue recognition is deferred until such time the performance obligations have been satisfied. In cases where we have not received payment despite satisfaction of our performance obligations, we accrue an estimate of the amount due in the period our performance obligations have been satisfied. For contracts with variable components, only amounts for which collection is probable are accrued. We generally act in a principal capacity, on our own behalf, in most of our contracts with customers. In such transactions, we recognize revenue and the related costs to provide our services on a gross basis in our financial statements. In some cases, we act in an agent capacity, deriving revenue through assisting other entities in transactions with our customers. In such transactions, we recognized revenue and the related costs to provide our services on a net basis in our financial statements. These transactions relate to our customers' use of various interchange and ATM/debit card networks. Based on our underlying contracts, ASU 2014-09 requires us to report network costs associated with debit card and ATM transactions netted against the related fees from such transactions. Previously, such network costs were reported as a component of other noninterest expense. For the three months ended March 31, 2018, gross interchange and debit card transaction fees totaled $332.5 thousand while related network costs totaled $187.0 thousand . On a net basis, we reported $145.5 thousand as interchange and debit card transaction fees in the accompanying Consolidated Statement of Income for the three months ended March 31, 2018. For the three months ended March 31, 2017, we reported interchange and debit card transaction fees totaling $192.4 thousand on a gross basis in the accompanying Consolidated Statement of Income while related network costs totaling $86.8 thousand were reported in other operating expenses included as a component of other noninterest expense. ASU 2016-01 "Financial Instruments - Overall (Subtopic 825-10): Recognition of Financial Assets and Financial Liabilities, ("ASU 2016-01") makes targeted amendments to the guidance for recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 requires equity investments, other than equity method investments, to be measured at fair value with changes in fair value recognized in net income. The ASU requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption to reclassify the cumulative change in fair value of equity securities previously recognized in Accumulated Other Comprehensive Income. ASU 2016-01 became effective for the Company on January 1, 2018 and there was no adjustment to retained earnings. ASU 2016-01 also emphasizes the existing requirement to use exit prices to measure fair value for disclosure purposes and clarifies that entities should not make use of a practicability exception in determining the fair value of loans. Accordingly, we refined the calculation used to determine the disclosed fair value of our loans held for investment portfolio as part of adopting this standard. The refined calculation is disclosed Note 6 - Fair Value Disclosures. |
Reclassifications | Reclassifications: Certain captions and amounts in the 2017 consolidated financial statements were reclassified to conform to the 2018 presentation and these reclassifications had no impact on net income or equity as previously reported. |
Earnings Per Common Share | Earnings per common share: Basic earnings per common share represents income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance (excluding tax impact). Potential common shares that may be issued by the Company relate solely to outstanding stock options, determined using the treasury stock method, and restricted stock awards, determined by the fair value of the Company's stock on date of grant. |
Earnings per share (Tables)
Earnings per share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following is a summary of the basic and diluted earnings per share for the three month periods ended March 31, 2018 and March 31, 2017 . Three Months Ended March 31, 2018 2017 Net income available to common shareholders $ 3,414,771 $ 1,448,851 Weighted average common shares outstanding 11,210,836 7,524,830 Effect of dilutive stock options 113,216 106,389 Diluted shares 11,324,052 7,631,219 Basic earnings per common share $ 0.30 $ 0.19 Diluted earnings per common share $ 0.30 $ 0.19 |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 and December 31, 2017 are summarized as follows (in thousands): March 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Government-sponsored enterprises (GSEs) $ 30,147 $ — $ (844 ) $ 29,303 Municipal securities 10,141 10 (265 ) 9,886 Other debt securities 975 — (51 ) 924 Mortgage-backed securities (GSEs) 118,386 195 (2,484 ) 116,097 $ 159,649 $ 205 $ (3,644 ) $ 156,210 Note 3. Securities, Continued December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Government-sponsored enterprises (GSEs) $ 26,207 $ 1 $ (432 ) $ 25,776 Municipal securities 9,122 28 (147 ) 9,003 Other debt securities 974 — (24 ) 950 Mortgage-backed securities (GSEs) 117,263 136 (1,184 ) 116,215 $ 153,566 $ 165 $ (1,787 ) $ 151,944 |
Investments Classified by Contractual Maturity Date | The amortized cost and estimated fair value of securities at March 31, 2018 , by contractual maturity for non-mortgage backed securities, are shown below (in thousands). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Fair Value Due in one year or less $ 1,175 $ 1,175 Due from one year to five years 21,606 21,011 Due from five years to ten years 12,665 12,237 Due after ten years 5,817 5,690 41,263 40,113 Mortgage-backed securities 118,386 116,097 $ 159,649 $ 156,210 |
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 March 31, 2018 and December 31, 2017 (in thousands): As of March 31, 2018 Less than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses U.S. Government- sponsored enterprises (GSEs) $ 16,016 $ (281 ) $ 13,287 $ (563 ) $ 29,303 $ (844 ) Municipal securities 5,915 (129 ) 2,077 (136 ) 7,992 (265 ) Other debt securities — — 924 (51 ) 924 (51 ) Mortgage-backed securities (GSEs) 60,316 (1,389 ) 30,822 (1,095 ) 91,138 (2,484 ) $ 82,247 $ (1,799 ) $ 47,110 $ (1,845 ) $ 129,357 $ (3,644 ) Note 3. Securities, Continued As of December 31, 2017 Less than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses U.S. Government- sponsored enterprises (GSEs) $ 1,358 $ (1 ) $ 13,420 $ (431 ) $ 14,778 $ (432 ) Municipal securities 3,418 (43 ) 2,112 (104 ) 5,530 (147 ) Other debt securities 950 (24 ) — — 950 (24 ) Mortgage-backed securities (GSEs) 61,332 (407 ) 35,048 (777 ) 96,380 (1,184 ) $ 67,058 $ (475 ) $ 50,580 $ (1,312 ) $ 117,638 $ (1,787 ) |
Loans and Allowance for Loan 22
Loans and Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | At March 31, 2018 and December 31, 2017 , loans are summarized as follows (in thousands): March 31, 2018 December 31, 2017 PCI Loans 1 All Other Loans Total PCI Loans 1 All Other Loans Total Commercial real estate $ 16,236 $ 647,458 $ 663,694 $ 17,903 $ 625,085 $ 642,988 Consumer real estate 6,985 292,162 299,147 7,450 286,007 293,457 Construction and land development 5,003 137,701 142,704 5,120 130,289 135,409 Commercial and industrial 649 255,684 256,333 858 237,229 238,087 Consumer and other 963 11,416 12,379 1,463 11,854 13,317 Total loans 29,836 1,344,421 1,374,257 32,794 1,290,464 1,323,258 Less: Allowance for loan losses — (6,477 ) (6,477 ) (16 ) (5,844 ) (5,860 ) Loans, net $ 29,836 $ 1,337,944 $ 1,367,780 $ 32,778 $ 1,284,620 $ 1,317,398 1 Purchased Credit Impaired loans (“PCI loans”) are loans with evidence of credit deterioration at purchase. |
Schedule of Impaired and Performing Loans Receivable | The composition of loans by loan classification for impaired and performing loan status at March 31, 2018 and December 31, 2017 , is summarized in the tables below (in thousands): March 31, 2018 Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Performing loans $ 646,908 $ 290,556 $ 137,154 $ 255,472 $ 11,304 $ 1,341,394 Impaired loans 550 1,606 547 212 112 3,027 647,458 292,162 137,701 255,684 11,416 1,344,421 PCI loans 16,236 6,985 5,003 649 963 29,836 Total $ 663,694 $ 299,147 $ 142,704 $ 256,333 $ 12,379 $ 1,374,257 December 31, 2017 Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Performing loans $ 624,638 $ 284,585 $ 129,742 $ 237,016 $ 11,842 $ 1,287,823 Impaired loans 447 1,422 547 213 12 2,641 625,085 286,007 130,289 237,229 11,854 1,290,464 PCI loans 17,903 7,450 5,120 858 1,463 32,794 Total loans $ 642,988 $ 293,457 $ 135,409 $ 238,087 $ 13,317 $ 1,323,258 |
Schedule of Allowance for Loan Losses for Impaired and Performing Loans Receivable | The following tables show the allowance for loan losses allocation by loan classification for impaired, PCI, and performing loans as of March 31, 2018 and December 31, 2017 (in thousands): March 31, 2018 Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Performing loans $ 2,925 $ 1,327 $ 627 $ 1,111 $ 118 $ 6,108 Impaired loans — 192 — 99 78 369 Total $ 2,925 $ 1,519 $ 627 $ 1,210 $ 196 $ 6,477 December 31, 2017 Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Performing loans $ 2,444 $ 1,340 $ 521 $ 890 $ 204 $ 5,399 PCI loans 16 — — — — 16 Impaired loans 5 256 — 172 12 445 Total $ 2,465 $ 1,596 $ 521 $ 1,062 $ 216 $ 5,860 |
Schedule of Financing Receivable Allowance for Credit Losses | The following tables detail the changes in the allowance for loan losses for the three month period ending March 31, 2018 and year ending December 31, 2017 , by loan classification (in thousands): March 31, 2018 Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Beginning balance $ 2,465 $ 1,596 $ 521 $ 1,062 $ 216 $ 5,860 Loans charged off (38 ) — — (78 ) (42 ) (158 ) Recoveries of loans charged off — 23 2 40 21 86 Provision (reallocation) charged to expense 498 (100 ) 104 186 1 689 Ending balance $ 2,925 $ 1,519 $ 627 $ 1,210 $ 196 $ 6,477 December 31, 2017 Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Beginning balance $ 2,369 $ 1,382 $ 717 $ 520 $ 117 $ 5,105 Loans charged off — (111 ) — (24 ) (141 ) (276 ) Recoveries of charge-offs 8 99 13 67 61 248 Provision (reallocation) charged to expense 88 226 (209 ) 499 179 783 Ending balance $ 2,465 $ 1,596 $ 521 $ 1,062 $ 216 $ 5,860 |
Financing Receivable Credit Quality Indicators | The following tables outline the amount of each loan classification and the amount categorized into each risk rating as of March 31, 2018 and December 31, 2017 (in thousands): March 31, 2018 Non PCI Loans Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Pass $ 645,238 $ 287,350 $ 137,154 $ 254,341 $ 11,150 $ 1,335,233 Watch 1,660 3,227 — 1,154 127 6,168 Special mention — 12 — — — 12 Substandard 560 1,573 547 169 114 2,963 Doubtful — — — 20 25 45 Total $ 647,458 $ 292,162 $ 137,701 $ 255,684 $ 11,416 $ 1,344,421 PCI Loans Pass $ 13,474 $ 4,257 $ 4,008 $ 99 $ 843 $ 22,681 Watch 1,590 1,281 651 3 21 3,546 Special mention — — — 59 — 59 Substandard 1,172 1,447 344 475 99 3,537 Doubtful — — — 13 — 13 Total $ 16,236 $ 6,985 $ 5,003 $ 649 $ 963 $ 29,836 Total loans $ 663,694 $ 299,147 $ 142,704 $ 256,333 $ 12,379 $ 1,374,257 Note 4. Loans and Allowance for Loan Losses, Continued Credit Risk Management (continued): December 31, 2017 Non PCI Loans Commercial Real Estate Consumer Real Estate Construction and Land Development Commercial and Industrial Consumer and Other Total Pass $ 616,028 $ 279,464 $ 129,359 $ 233,942 $ 11,624 $ 1,270,417 Watch 7,673 2,543 383 3,007 62 13,668 Special mention 1,006 2,627 — 64 155 3,852 Substandard 378 1,159 547 157 — 2,241 Doubtful — 214 — 59 13 286 Total $ 625,085 $ 286,007 $ 130,289 $ 237,229 $ 11,854 $ 1,290,464 PCI Loans Pass $ 14,386 $ 4,151 $ 4,134 $ 68 $ 819 $ 23,558 Watch 261 1,345 649 120 262 2,637 Special mention — 456 — 58 24 538 Substandard 3,084 1,192 337 588 107 5,308 Doubtful 172 306 — 24 251 753 Total $ 17,903 $ 7,450 $ 5,120 $ 858 $ 1,463 $ 32,794 Total loans $ 642,988 $ 293,457 $ 135,409 $ 238,087 $ 13,317 $ 1,323,258 |
Past Due Financing Receivables | The following tables present the aging of the recorded investment in loans as of March 31, 2018 and December 31, 2017 (in thousands): March 31, 2018 30-89 Days Past Due and Accruing Past Due 90 Days or More and Accruing Nonaccrual Total Past Due and NonAccrual PCI Loans Current Loans Total Loans Commercial real estate $ 1,039 $ 165 $ 6 $ 1,210 $ 16,236 $ 646,248 $ 663,694 Consumer real estate 458 130 1,085 1,673 6,985 290,489 299,147 Construction and land development 238 334 547 1,119 5,003 136,582 142,704 Commercial and industrial 315 138 83 536 649 255,148 256,333 Consumer and other 103 31 90 224 963 11,192 12,379 Total $ 2,153 $ 798 $ 1,811 $ 4,762 $ 29,836 $ 1,339,659 $ 1,374,257 Note 4. Loans and Allowance for Loan Losses, Continued Past Due Loans (continued): December 31, 2017 30-89 Days Past Due and Accruing Past Due 90 Days or More and Accruing Nonaccrual Total Past Due and NonAccrual PCI Loans Current Loans Total Loans Commercial real estate $ 517 $ 728 $ 128 $ 1,373 $ 17,903 $ 623,712 $ 642,988 Consumer real estate 963 33 991 1,987 7,450 284,020 293,457 Construction and land development 65 326 547 938 5,120 129,351 135,409 Commercial and industrial 286 131 85 502 858 236,727 238,087 Consumer and other 165 291 13 469 1,463 11,385 13,317 Total $ 1,996 $ 1,509 $ 1,764 $ 5,269 $ 32,794 $ 1,285,195 $ 1,323,258 |
Impaired Financing Receivables | The following is an analysis of the impaired loan portfolio, excluding PCI loans, detailing the related allowance recorded as of March 31, 2018 and December 31, 2017 (in thousands): For the three months ended At March 31, 2018 March 31, 2018 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Impaired loans without a valuation allowance: Commercial real estate $ 550 $ 565 $ — $ 487 $ 10 Consumer real estate 889 929 — 652 5 Construction and land development 547 547 — 547 — Commercial and industrial 52 51 — 47 1 Consumer and other — — — — — 2,038 2,092 — 1,733 16 Impaired loans with a valuation allowance: Commercial real estate — — — 12 — Consumer real estate 716 729 192 862 11 Construction and land development — — — — — Commercial and industrial 161 162 99 167 1 Consumer and other 112 113 78 62 1 989 1,004 369 1,103 13 Total impaired loans $ 3,027 $ 3,096 $ 369 $ 2,836 $ 29 Note 4. Loans and Allowance for Loan Losses, Continued Impaired Loans (continued): For the year ended At December 31, 2017 December 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Impaired loans without a valuation allowance: Commercial real estate $ 424 $ 454 $ — $ 204 $ 44 Consumer real estate 415 420 — 401 16 Construction and land development 547 547 — 628 — Commercial and industrial 41 41 — 44 3 Consumer and other — — — — — 1,427 1,462 — 1,277 63 Impaired loans with a valuation allowance: Commercial real estate 23 23 5 5 1 Consumer real estate 1,007 1,033 256 601 38 Construction and land development — — — — — Commercial and industrial 172 172 172 117 10 Consumer and other 12 13 12 2 1 1,214 1,241 445 725 50 PCI loans: Commercial real estate 16 123 16 3 16 Total impaired loans $ 2,657 $ 2,826 $ 461 $ 2,005 $ 129 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period, Carrying Amount of Loans | The Company has acquired loans which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of those loans as of is as follows (in thousands): March 31, 2018 December 31, 2017 Commercial real estate $ 21,866 $ 23,366 Consumer real estate 9,849 10,764 Construction and land development 6,109 6,285 Commercial and industrial 1,191 1,452 Consumer and other 1,277 1,710 Total loans 40,292 43,577 Less remaining purchase discount (10,456 ) (10,783 ) Total loans, net of purchase discount 29,836 32,794 Less: Allowance for loan losses — (16 ) Carrying amount, net of allowance $ 29,836 $ 32,778 |
Schedule of Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement | Activity related to the accretable yield on loans acquired with deteriorated credit quality is as follows for the three months period ended March 31, 2018 and 2017 (in thousands): Three Months Ended Three Months Ended Accretable yield, beginning of period $ 9,287 $ 8,950 Additions — — Accretion income (1,101 ) (697 ) Reclassification to accretable 262 244 Other changes, net (668 ) (15 ) Accretable yield $ 7,780 $ 8,482 |
Commitments and Contingent Li23
Commitments and Contingent Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitments | A summary of the Bank’s total contractual amount for all off-balance sheet commitments at March 31, 2018 is as follows: Commitments to extend credit $ 256.2 million Standby letters of credit $ 3.1 million |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Assets and liabilities recorded at fair value on a recurring basis are as follows (in thousands): Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Debt securities available-for-sale: U.S. Government-sponsored enterprises (GSEs) $ 29,303 $ — $ 29,303 $ — Mortgage-backed securities 116,097 — 116,097 — Other debt securities 924 — 924 — Municipal securities 9,886 — 9,886 — Total securities available-for-sale $ 156,210 $ — $ 156,210 $ — Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Debt securities available-for-sale: U.S. Government-sponsored enterprises (GSEs) $ 25,776 $ — $ 25,776 $ — Mortgage-backed securities 116,215 — 116,215 — Other debt securities 950 — 950 — Municipal securities 9,003 — 9,003 — Total securities available-for-sale $ 151,944 $ — $ 151,944 $ — |
Fair Value, Assets and Liabilities Measured on Non-Recurring Basis | For Level 3 assets measured at fair value on a non-recurring basis as of March 31, 2018 and December 31, 2017, , the significant unobservable inputs used in the fair value measurements are presented below (in thousands). Balance as of Valuation Significant Other Weighted Impaired loans $ 620 Appraisal Appraisal Discounts 37 % Foreclosed assets 2,665 Appraisal Appraisal Discounts 21 % Balance as of Valuation Significant Other Weighted Impaired loans $ 769 Appraisal Appraisal Discounts 36 % Foreclosed assets 3,254 Appraisal Appraisal Discounts 18 % The following tables present the financial instruments carried on the consolidated balance sheets by caption and by level in the fair value hierarchy, for which a nonrecurring change in fair value has been recorded (in thousands): Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Impaired loans $ 620 $ — $ — $ 620 Foreclosed assets 2,665 — — 2,665 Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Impaired loans $ 769 $ — $ — $ 769 Foreclosed assets 3,254 — — 3,254 |
Fair Value, by Balance Sheet Grouping | The carrying amount and estimated fair value of the Company’s financial instruments at March 31, 2018 and December 31, 2017 are as follows (in thousands): March 31, 2018 Fair Value Measurements Using Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value Assets: Cash and cash equivalents $ 96,710 96,710 — — $ 96,710 Securities available for sale 156,210 — 156,210 — 156,210 Restricted investments 7,808 N/A N/A N/A N/A Loans, net 1,367,780 — — 1,373,919 1,373,919 Liabilities: Noninterest-bearing demand deposits 276,249 — 276,249 — 276,249 Interest-bearing demand deposits 278,965 — 278,965 — 278,965 Money Market and Savings deposits 491,243 — 491,243 — 491,243 Time deposits 453,276 — 453,943 — 453,943 Securities sold under agreements to repurchase 15,968 — 15,968 — 15,968 Federal Home Loan Bank advances and other borrowings 30,000 — 30,000 — 30,000 Note 6. Fair Value Disclosures, Continued Carrying value and estimated fair value (continued): December 31, 2017 Fair Value Measurements Using Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value Assets: Cash and cash equivalents $ 113,027 113,027 — — $ 113,027 Securities available for sale 151,944 — 151,944 — 151,944 Restricted investments 6,431 N/A N/A N/A N/A Loans, net 1,317,398 — — 1,292,303 1,292,303 Liabilities: Noninterest-bearing demand deposits 220,520 — 220,520 — 250,520 Interest-bearing demand deposits 231,644 — 231,644 — 231,644 Money Market and Savings deposits 543,645 — 543,645 — 543,645 Time deposits 442,774 — 443,547 — 443,547 Securities sold under agreements to repurchase 24,055 — 24,055 — 24,055 Federal Home Loan Bank advances and other borrowings 43,600 — 43,600 — 43,600 |
Business Combination (Tables)
Business Combination (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Allocation of Purchase Price to Fair Value of Net Assets Acquired | The following table details the financial impact of the transaction, including the allocation of the purchase price to the fair values of net assets assumed and goodwill recognized: Allocation of Purchase Price (in thousands) Total consideration in cash $ 1,183 Fair value of assets acquired and liabilities assumed: Cash and cash equivalents 133 Loans 24,073 Premises and equipment 2,839 Core deposit intangible 310 Prepaid and other assets 77 Deposits (26,888 ) Payables and other liabilities (21 ) Total fair value of net assets acquired 523 Goodwill $ 660 The following table details the financial impact of the merger, including the calculation of the purchase price, the allocation of the purchase price to the fair values of net assets assumed, and goodwill recognized: Calculation of Purchase Price Shares of SMBK common stock issued to Capstone shareholders as of November 1, 2017 2,908,094 Market price of SMBK common stock on November 1, 2017 $ 23.49 Estimated fair value of SMBK common stock issued (in thousands) 68,311 Estimated fair value of Capstone stock options (in thousands) 1,585 Cash consideration paid 15,826 Total consideration (in thousands) $ 85,722 Allocation of Purchase Price (in thousands) Total consideration above $ 85,722 Fair value of assets acquired and liabilities assumed: Cash and cash equivalents 16,810 Investment securities available for sale 51,638 Restricted investments 1,049 Loans 413,023 Premises and equipment 8,668 Bank owned life insurance 10,031 Core deposit intangible 5,530 Other real estate owned 410 Prepaid and other assets 6,360 Deposits (454,154 ) FHLB advances and other borrowings (4,887 ) Payables and other liabilities (6,803 ) Total fair value of net assets acquired 47,675 Goodwill $ 38,047 |
Presentation of Financial Inf26
Presentation of Financial Information - Additional Details (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Gross interchange and debit card transaction fees | $ 332,500 | ||
Network costs | 187,000 | $ 86,800 | |
Interchange and debit card transaction fees | $ 145,536 | $ 192,394 | |
Tax Cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings, Tax Effect | $ 197,000 |
Earnings per share - Basic and
Earnings per share - Basic and Diluted (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Net income available to common shareholders | $ 3,414,771 | $ 1,448,851 |
Weighted average common shares outstanding (in shares) | 11,210,836 | 7,524,830 |
Effect of dilutive stock options (in shares) | 113,216 | 106,389 |
Diluted shares (in shares) | 11,324,052 | 7,631,219 |
Basic earnings per common share (in dollars per share) | $ 0.30 | $ 0.19 |
Diluted earnings per common share (in dollars per share) | $ 0.30 | $ 0.19 |
Earnings per share - Narrative
Earnings per share - Narrative (Details) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 13,166 |
Securities - Amortized Cost and
Securities - Amortized Cost and Fair Value of Available-for-sale Securities (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Debt securities available-for-sale: | ||
Amortized Cost | $ 159,649,000 | $ 153,566,000 |
Gross Unrealized Gains | 205,000 | 165,000 |
Gross Unrealized Losses | (3,644,000) | (1,787,000) |
Fair Value | 156,209,802 | 151,944,567 |
U.S. Government-sponsored enterprises (GSEs) [Member] | ||
Debt securities available-for-sale: | ||
Amortized Cost | 30,147,000 | 26,207,000 |
Gross Unrealized Gains | 0 | 1,000 |
Gross Unrealized Losses | (844,000) | (432,000) |
Fair Value | 29,303,000 | 25,776,000 |
Municipal securities [Member] | ||
Debt securities available-for-sale: | ||
Amortized Cost | 10,141,000 | 9,122,000 |
Gross Unrealized Gains | 10,000 | 28,000 |
Gross Unrealized Losses | (265,000) | (147,000) |
Fair Value | 9,886,000 | 9,003,000 |
Other debt securities [Member] | ||
Debt securities available-for-sale: | ||
Amortized Cost | 975,000 | 974,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (51,000) | (24,000) |
Fair Value | 924,000 | 950,000 |
Mortgage-backed securities (GSEs) [Member] | ||
Debt securities available-for-sale: | ||
Amortized Cost | 118,386,000 | 117,263,000 |
Gross Unrealized Gains | 195,000 | 136,000 |
Gross Unrealized Losses | (2,484,000) | (1,184,000) |
Fair Value | $ 116,097,000 | $ 116,215,000 |
Securities - Narrative (Details
Securities - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities pledged as collateral | $ 83,400,000 | $ 97,200,000 |
Proceeds from sale of available-for-sale securities | 0 | |
Gains from sale of securities | 0 | |
Losses from sale of securities | $ 0 |
Securities - Available-for-sale
Securities - Available-for-sale Securities by Contractual Maturity (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Amortized Cost | ||
Securities Available for Sale, Due in one year or less, Amortized Cost | $ 1,175,000 | |
Securities Available for Sale, Due from one year to five years, Amortized Cost | 21,606,000 | |
Securities Available for Sale, Due from five years to ten years, Amortized Cost | 12,665,000 | |
Securities Available for Sale, Due after ten years, Amortized Cost | 5,817,000 | |
Securities Available for Sale, Debt Securities, Amortized Cost | 41,263,000 | |
Amortized Cost | 159,649,000 | $ 153,566,000 |
Fair Value | ||
Securities Available for Sale, Due in one year or less, Fair Value | 1,175,000 | |
Securities Available for Sale, Due from one year to five years, Fair Value | 21,011,000 | |
Securities Available for Sale, Due from five years to ten years, Fair Value | 12,237,000 | |
Securities Available for Sale, Due after ten years, Fair Value | 5,690,000 | |
Securities Available for Sale, Debt Securities, Fair Value | 40,113,000 | |
Securities Available for Sale, Fair Value | 156,209,802 | $ 151,944,567 |
Mortgage-backed securities [Member] | ||
Amortized Cost | ||
Securities Available for Sale, Mortgage-backed securities, Amortized Cost | 118,386,000 | |
Fair Value | ||
Securities Available for Sale, Mortgage-backed securities, Fair Value | $ 116,097,000 |
Securities - Available-for-sa32
Securities - Available-for-sale Securities in Continuous Loss Position (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018USD ($)investment | Dec. 31, 2017USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | $ 82,247 | $ 67,058 |
Less than 12 Months, Gross Unrealized Losses | (1,799) | (475) |
12 Months or Greater, Fair Value | 47,110 | 50,580 |
12 Months or Greater, Gross Unrealized Losses | (1,845) | (1,312) |
Total, Fair Value | 129,357 | 117,638 |
Total, Gross Unrealized Losses | (3,644) | (1,787) |
U.S. Government-sponsored enterprises (GSEs) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 16,016 | 1,358 |
Less than 12 Months, Gross Unrealized Losses | (281) | (1) |
12 Months or Greater, Fair Value | 13,287 | 13,420 |
12 Months or Greater, Gross Unrealized Losses | (563) | (431) |
Total, Fair Value | 29,303 | 14,778 |
Total, Gross Unrealized Losses | $ (844) | (432) |
Number of investments in unrealized loss positions | investment | 9 | |
Municipal securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | $ 5,915 | 3,418 |
Less than 12 Months, Gross Unrealized Losses | (129) | (43) |
12 Months or Greater, Fair Value | 2,077 | 2,112 |
12 Months or Greater, Gross Unrealized Losses | (136) | (104) |
Total, Fair Value | 7,992 | 5,530 |
Total, Gross Unrealized Losses | $ (265) | (147) |
Number of investments in unrealized loss positions | investment | 19 | |
Other debt securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | $ 0 | 950 |
Less than 12 Months, Gross Unrealized Losses | 0 | (24) |
12 Months or Greater, Fair Value | 924 | 0 |
12 Months or Greater, Gross Unrealized Losses | (51) | 0 |
Total, Fair Value | 924 | 950 |
Total, Gross Unrealized Losses | $ (51) | (24) |
Number of investments in unrealized loss positions | investment | 1 | |
Mortgage-backed securities (GSEs) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | $ 60,316 | 61,332 |
Less than 12 Months, Gross Unrealized Losses | (1,389) | (407) |
12 Months or Greater, Fair Value | 30,822 | 35,048 |
12 Months or Greater, Gross Unrealized Losses | (1,095) | (777) |
Total, Fair Value | 91,138 | 96,380 |
Total, Gross Unrealized Losses | $ (2,484) | $ (1,184) |
Number of investments in unrealized loss positions | investment | 63 |
Loans and Allowance for Loan 33
Loans and Allowance for Loan Losses - Loan Summary (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | $ 1,374,257,000 | $ 1,323,258,000 | |
Less: Allowance for loan losses | (6,477,000) | (5,860,000) | $ (5,105,000) |
Loans, net | 1,367,779,622 | 1,317,397,909 | |
Purchased Credit Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 29,836,000 | 32,794,000 | |
Less: Allowance for loan losses | 0 | (16,000) | |
Loans, net | 29,836,000 | 32,778,000 | |
All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 1,344,421,000 | 1,290,464,000 | |
Less: Allowance for loan losses | (6,477,000) | (5,844,000) | |
Loans, net | 1,337,944,000 | 1,284,620,000 | |
Commercial Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 663,694,000 | 642,988,000 | |
Less: Allowance for loan losses | (2,925,000) | (2,465,000) | (2,369,000) |
Commercial Real Estate [Member] | Purchased Credit Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 16,236,000 | 17,903,000 | |
Less: Allowance for loan losses | (16,000) | ||
Commercial Real Estate [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 647,458,000 | 625,085,000 | |
Consumer Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 299,147,000 | 293,457,000 | |
Less: Allowance for loan losses | (1,519,000) | (1,596,000) | (1,382,000) |
Consumer Real Estate [Member] | Purchased Credit Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 6,985,000 | 7,450,000 | |
Less: Allowance for loan losses | 0 | ||
Consumer Real Estate [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 292,162,000 | 286,007,000 | |
Construction and Land Development [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 142,704,000 | 135,409,000 | |
Less: Allowance for loan losses | (627,000) | (521,000) | (717,000) |
Construction and Land Development [Member] | Purchased Credit Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 5,003,000 | 5,120,000 | |
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 | 137,701,000 | 130,289,000 | |
Commercial and Industrial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 256,333,000 | 238,087,000 | |
Less: Allowance for loan losses | (1,210,000) | (1,062,000) | (520,000) |
Commercial and Industrial [Member] | Purchased Credit Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 649,000 | 858,000 | |
Less: Allowance for loan losses | 0 | ||
Commercial and Industrial [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 255,684,000 | 237,229,000 | |
Consumer and Other [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 12,379,000 | 13,317,000 | |
Less: Allowance for loan losses | (196,000) | (216,000) | $ (117,000) |
Consumer and Other [Member] | Purchased Credit Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 963,000 | 1,463,000 | |
Less: Allowance for loan losses | 0 | ||
Consumer and Other [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | $ 11,416,000 | $ 11,854,000 |
Loans and Allowance for Loan 34
Loans and Allowance for Loan Losses - Narrative (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018USD ($)contractloansegment | Dec. 31, 2017USD ($)contract | Dec. 31, 2016USD ($) | |
Financing Receivable, Modifications [Line Items] | |||
Loan portfolio segments | segment | 5 | ||
Allowance for loan losses | $ 6,477,000 | $ 5,860,000 | $ 5,105,000 |
Number of contracts | contract | 0 | 0 | |
Foreclosed assets | $ 2,665,057 | $ 3,254,392 | |
Mortgage loans in process of foreclosure | 201,000 | ||
Trouble Debt Restructuring [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Loans that met criteria for restructured | $ 40,000 | $ 41,000 | |
Number of contracts, nonaccrual | loan | 0 | ||
Residential Real Estate [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Foreclosed assets | $ 681,000 |
Loans and Allowance for Loan 35
Loans and Allowance for Loan Losses - Performing and Impaired Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 1,374,257 | $ 1,323,258 |
All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,344,421 | 1,290,464 |
Purchased Credit Impaired Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 29,836 | 32,794 |
Commercial Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 663,694 | 642,988 |
Commercial Real Estate [Member] | All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 647,458 | 625,085 |
Commercial Real Estate [Member] | Purchased Credit Impaired Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 16,236 | 17,903 |
Consumer Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 299,147 | 293,457 |
Consumer Real Estate [Member] | All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 292,162 | 286,007 |
Consumer Real Estate [Member] | Purchased Credit Impaired Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 6,985 | 7,450 |
Construction and Land Development [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 142,704 | 135,409 |
Construction and Land Development [Member] | All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 137,701 | 130,289 |
Construction and Land Development [Member] | Purchased Credit Impaired Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 5,003 | 5,120 |
Commercial and Industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 256,333 | 238,087 |
Commercial and Industrial [Member] | All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 255,684 | 237,229 |
Commercial and Industrial [Member] | Purchased Credit Impaired Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 649 | 858 |
Consumer and Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 12,379 | 13,317 |
Consumer and Other [Member] | All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 11,416 | 11,854 |
Consumer and Other [Member] | Purchased Credit Impaired Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 963 | 1,463 |
Performing [Member] | All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,341,394 | 1,287,823 |
Performing [Member] | Commercial Real Estate [Member] | All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 646,908 | 624,638 |
Performing [Member] | Consumer Real Estate [Member] | All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 290,556 | 284,585 |
Performing [Member] | Construction and Land Development [Member] | All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 137,154 | 129,742 |
Performing [Member] | Commercial and Industrial [Member] | All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 255,472 | 237,016 |
Performing [Member] | Consumer and Other [Member] | All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 11,304 | 11,842 |
Impaired Loans [Member] | All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 3,027 | 2,641 |
Impaired Loans [Member] | Commercial Real Estate [Member] | All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 550 | 447 |
Impaired Loans [Member] | Consumer Real Estate [Member] | All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,606 | 1,422 |
Impaired Loans [Member] | Construction and Land Development [Member] | All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 547 | 547 |
Impaired Loans [Member] | Commercial and Industrial [Member] | All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 212 | 213 |
Impaired Loans [Member] | Consumer and Other [Member] | All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 112 | $ 12 |
Loans and Allowance for Loan 36
Loans and Allowance for Loan Losses - ALL by Loan Classification (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | $ 6,477,000 | $ 5,860,000 | $ 5,105,000 |
All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 6,477,000 | 5,844,000 | |
Purchased Credit Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 0 | 16,000 | |
Performing [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 6,108,000 | 5,399,000 | |
Impaired Loans [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 369,000 | 445,000 | |
Commercial Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 2,925,000 | 2,465,000 | 2,369,000 |
Commercial Real Estate [Member] | Purchased Credit Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 16,000 | ||
Commercial Real Estate [Member] | Performing [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 2,925,000 | 2,444,000 | |
Commercial Real Estate [Member] | Impaired Loans [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 0 | 5,000 | |
Consumer Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 1,519,000 | 1,596,000 | 1,382,000 |
Consumer Real Estate [Member] | Purchased Credit Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 0 | ||
Consumer Real Estate [Member] | Performing [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 1,327,000 | 1,340,000 | |
Consumer Real Estate [Member] | Impaired Loans [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 192,000 | 256,000 | |
Construction and Land Development [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 627,000 | 521,000 | 717,000 |
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 | 627,000 | 521,000 | |
Construction and Land Development [Member] | Impaired Loans [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 0 | 0 | |
Commercial and Industrial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 1,210,000 | 1,062,000 | 520,000 |
Commercial and Industrial [Member] | Purchased Credit Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 0 | ||
Commercial and Industrial [Member] | Performing [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 1,111,000 | 890,000 | |
Commercial and Industrial [Member] | Impaired Loans [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 99,000 | 172,000 | |
Consumer and Other [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 196,000 | 216,000 | $ 117,000 |
Consumer and Other [Member] | Purchased Credit Impaired Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 0 | ||
Consumer and Other [Member] | Performing [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | 118,000 | 204,000 | |
Consumer and Other [Member] | Impaired Loans [Member] | All Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | $ 78,000 | $ 12,000 |
Loans and Allowance for Loan 37
Loans and Allowance for Loan Losses - ALL Roll Forward (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | $ 5,860,000 | $ 5,105,000 | $ 5,105,000 |
Loans charged off | (158,000) | (276,000) | |
Recoveries of loans charged off | 86,000 | 248,000 | |
Provision (reallocation) charged to expense | 688,796 | 12,450 | 783,000 |
Ending balance | 6,477,000 | 5,860,000 | |
Commercial Real Estate [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 2,465,000 | 2,369,000 | 2,369,000 |
Loans charged off | (38,000) | 0 | |
Recoveries of loans charged off | 0 | 8,000 | |
Provision (reallocation) charged to expense | 498,000 | 88,000 | |
Ending balance | 2,925,000 | 2,465,000 | |
Consumer Real Estate [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 1,596,000 | 1,382,000 | 1,382,000 |
Loans charged off | 0 | (111,000) | |
Recoveries of loans charged off | 23,000 | 99,000 | |
Provision (reallocation) charged to expense | (100,000) | 226,000 | |
Ending balance | 1,519,000 | 1,596,000 | |
Construction and Land Development [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 521,000 | 717,000 | 717,000 |
Loans charged off | 0 | 0 | |
Recoveries of loans charged off | 2,000 | 13,000 | |
Provision (reallocation) charged to expense | 104,000 | (209,000) | |
Ending balance | 627,000 | 521,000 | |
Commercial and Industrial [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 1,062,000 | 520,000 | 520,000 |
Loans charged off | (78,000) | (24,000) | |
Recoveries of loans charged off | 40,000 | 67,000 | |
Provision (reallocation) charged to expense | 186,000 | 499,000 | |
Ending balance | 1,210,000 | 1,062,000 | |
Consumer and Other [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 216,000 | $ 117,000 | 117,000 |
Loans charged off | (42,000) | (141,000) | |
Recoveries of loans charged off | 21,000 | 61,000 | |
Provision (reallocation) charged to expense | 1,000 | 179,000 | |
Ending balance | $ 196,000 | $ 216,000 |
Loans and Allowance for Loan 38
Loans and Allowance for Loan Losses - Loan Risk Rating (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 1,374,257 | $ 1,323,258 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 663,694 | 642,988 |
Consumer Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 299,147 | 293,457 |
Construction and Land Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 142,704 | 135,409 |
Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 256,333 | 238,087 |
Consumer and Other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 12,379 | 13,317 |
Non PCI Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,344,421 | 1,290,464 |
Non PCI Loans [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,335,233 | 1,270,417 |
Non PCI Loans [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 6,168 | 13,668 |
Non PCI Loans [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 12 | 3,852 |
Non PCI Loans [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,963 | 2,241 |
Non PCI Loans [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 45 | 286 |
Non PCI Loans [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 647,458 | 625,085 |
Non PCI Loans [Member] | Commercial Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 645,238 | 616,028 |
Non PCI Loans [Member] | Commercial Real Estate [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,660 | 7,673 |
Non PCI Loans [Member] | Commercial Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 1,006 |
Non PCI Loans [Member] | Commercial Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 560 | 378 |
Non PCI Loans [Member] | Commercial Real Estate [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Non PCI Loans [Member] | Consumer Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 292,162 | 286,007 |
Non PCI Loans [Member] | Consumer Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 287,350 | 279,464 |
Non PCI Loans [Member] | Consumer Real Estate [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 3,227 | 2,543 |
Non PCI Loans [Member] | Consumer Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 12 | 2,627 |
Non PCI Loans [Member] | Consumer Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,573 | 1,159 |
Non PCI Loans [Member] | Consumer Real Estate [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 214 |
Non PCI Loans [Member] | Construction and Land Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 137,701 | 130,289 |
Non PCI Loans [Member] | Construction and Land Development [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 137,154 | 129,359 |
Non PCI Loans [Member] | Construction and Land Development [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 383 |
Non PCI Loans [Member] | Construction and Land Development [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Non PCI Loans [Member] | Construction and Land Development [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 547 | 547 |
Non PCI Loans [Member] | Construction and Land Development [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Non PCI Loans [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 255,684 | 237,229 |
Non PCI Loans [Member] | Commercial and Industrial [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 254,341 | 233,942 |
Non PCI Loans [Member] | Commercial and Industrial [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,154 | 3,007 |
Non PCI Loans [Member] | Commercial and Industrial [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 64 |
Non PCI Loans [Member] | Commercial and Industrial [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 169 | 157 |
Non PCI Loans [Member] | Commercial and Industrial [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 20 | 59 |
Non PCI Loans [Member] | Consumer and Other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 11,416 | 11,854 |
Non PCI Loans [Member] | Consumer and Other [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 11,150 | 11,624 |
Non PCI Loans [Member] | Consumer and Other [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 127 | 62 |
Non PCI Loans [Member] | Consumer and Other [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 155 |
Non PCI Loans [Member] | Consumer and Other [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 114 | 0 |
Non PCI Loans [Member] | Consumer and Other [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 25 | 13 |
Purchased Credit Impaired Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 29,836 | 32,794 |
Purchased Credit Impaired Loans [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 22,681 | 23,558 |
Purchased Credit Impaired Loans [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 3,546 | 2,637 |
Purchased Credit Impaired Loans [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 59 | 538 |
Purchased Credit Impaired Loans [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 3,537 | 5,308 |
Purchased Credit Impaired Loans [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 13 | 753 |
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 16,236 | 17,903 |
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 13,474 | 14,386 |
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,590 | 261 |
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,172 | 3,084 |
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 172 |
Purchased Credit Impaired Loans [Member] | Consumer Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 6,985 | 7,450 |
Purchased Credit Impaired Loans [Member] | Consumer Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 4,257 | 4,151 |
Purchased Credit Impaired Loans [Member] | Consumer Real Estate [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,281 | 1,345 |
Purchased Credit Impaired Loans [Member] | Consumer Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 456 |
Purchased Credit Impaired Loans [Member] | Consumer Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,447 | 1,192 |
Purchased Credit Impaired Loans [Member] | Consumer Real Estate [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 306 |
Purchased Credit Impaired Loans [Member] | Construction and Land Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 5,003 | 5,120 |
Purchased Credit Impaired Loans [Member] | Construction and Land Development [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 4,008 | 4,134 |
Purchased Credit Impaired Loans [Member] | Construction and Land Development [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 651 | 649 |
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 | 344 | 337 |
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 | 649 | 858 |
Purchased Credit Impaired Loans [Member] | Commercial and Industrial [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 99 | 68 |
Purchased Credit Impaired Loans [Member] | Commercial and Industrial [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 3 | 120 |
Purchased Credit Impaired Loans [Member] | Commercial and Industrial [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 59 | 58 |
Purchased Credit Impaired Loans [Member] | Commercial and Industrial [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 475 | 588 |
Purchased Credit Impaired Loans [Member] | Commercial and Industrial [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 13 | 24 |
Purchased Credit Impaired Loans [Member] | Consumer and Other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 963 | 1,463 |
Purchased Credit Impaired Loans [Member] | Consumer and Other [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 843 | 819 |
Purchased Credit Impaired Loans [Member] | Consumer and Other [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 21 | 262 |
Purchased Credit Impaired Loans [Member] | Consumer and Other [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 24 |
Purchased Credit Impaired Loans [Member] | Consumer and Other [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 99 | 107 |
Purchased Credit Impaired Loans [Member] | Consumer and Other [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 0 | $ 251 |
Loans and Allowance for Loan 39
Loans and Allowance for Loan Losses - Past Due Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | $ 1,811 | $ 1,764 |
Total Past Due and NonAccrual | 4,762 | 5,269 |
Current Loans | 1,339,659 | 1,285,195 |
Total loans | 1,374,257 | 1,323,258 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 6 | 128 |
Total Past Due and NonAccrual | 1,210 | 1,373 |
Current Loans | 646,248 | 623,712 |
Total loans | 663,694 | 642,988 |
Consumer Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 1,085 | 991 |
Total Past Due and NonAccrual | 1,673 | 1,987 |
Current Loans | 290,489 | 284,020 |
Total loans | 299,147 | 293,457 |
Construction and Land Development [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 547 | 547 |
Total Past Due and NonAccrual | 1,119 | 938 |
Current Loans | 136,582 | 129,351 |
Total loans | 142,704 | 135,409 |
Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 83 | 85 |
Total Past Due and NonAccrual | 536 | 502 |
Current Loans | 255,148 | 236,727 |
Total loans | 256,333 | 238,087 |
Consumer and Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 90 | 13 |
Total Past Due and NonAccrual | 224 | 469 |
Current Loans | 11,192 | 11,385 |
Total loans | 12,379 | 13,317 |
Purchased Credit Impaired Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 29,836 | 32,794 |
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 16,236 | 17,903 |
Purchased Credit Impaired Loans [Member] | Consumer Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 6,985 | 7,450 |
Purchased Credit Impaired Loans [Member] | Construction and Land Development [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 5,003 | 5,120 |
Purchased Credit Impaired Loans [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 649 | 858 |
Purchased Credit Impaired Loans [Member] | Consumer and Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 963 | 1,463 |
30-89 Days Past Due and Accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded investment, past due | 2,153 | 1,996 |
30-89 Days Past Due and Accruing [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded investment, past due | 1,039 | 517 |
30-89 Days Past Due and Accruing [Member] | Consumer Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded investment, past due | 458 | 963 |
30-89 Days Past Due and Accruing [Member] | Construction and Land Development [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded investment, past due | 238 | 65 |
30-89 Days Past Due and Accruing [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded investment, past due | 315 | 286 |
30-89 Days Past Due and Accruing [Member] | Consumer and Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded investment, past due | 103 | 165 |
Past Due 90 Days or More and Accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded investment, past due | 798 | 1,509 |
Past Due 90 Days or More and Accruing [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded investment, past due | 165 | 728 |
Past Due 90 Days or More and Accruing [Member] | Consumer Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded investment, past due | 130 | 33 |
Past Due 90 Days or More and Accruing [Member] | Construction and Land Development [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded investment, past due | 334 | 326 |
Past Due 90 Days or More and Accruing [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded investment, past due | 138 | 131 |
Past Due 90 Days or More and Accruing [Member] | Consumer and Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded investment, past due | $ 31 | $ 291 |
Loans and Allowance for Loan 40
Loans and Allowance for Loan Losses - Impaired Loan Portfolio (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with a valuation allowance, Related Allowance | $ 369 | $ 461 |
Total impaired loans, Recorded Investment | 3,027 | 2,657 |
Total impaired loans, Unpaid Principal Balance | 3,096 | 2,826 |
Total impaired loans, Average Recorded Investment | 2,836 | 2,005 |
Total impaired loans, Interest Income Recognized | 29 | 129 |
Non PCI Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans without a valuation allowance, Recorded Investment | 2,038 | 1,427 |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 2,092 | 1,462 |
Impaired loans without a valuation allowance, Average Recorded Investment | 1,733 | 1,277 |
Impaired loans without a valuation allowance, Interest Income Recognized | 16 | 63 |
Impaired loans with a valuation allowance, Recorded Investment | 989 | 1,214 |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 1,004 | 1,241 |
Impaired loans with a valuation allowance, Related Allowance | 369 | 445 |
Impaired loans with a valuation allowance, Average Recorded Investment | 1,103 | 725 |
Impaired loans with a valuation allowance, Interest Income Recognized | 13 | 50 |
Non PCI Loans [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans without a valuation allowance, Recorded Investment | 550 | 424 |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 565 | 454 |
Impaired loans without a valuation allowance, Average Recorded Investment | 487 | 204 |
Impaired loans without a valuation allowance, Interest Income Recognized | 10 | 44 |
Impaired loans with a valuation allowance, Recorded Investment | 0 | 23 |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 0 | 23 |
Impaired loans with a valuation allowance, Related Allowance | 0 | 5 |
Impaired loans with a valuation allowance, Average Recorded Investment | 12 | 5 |
Impaired loans with a valuation allowance, Interest Income Recognized | 0 | 1 |
Non PCI Loans [Member] | Consumer Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans without a valuation allowance, Recorded Investment | 889 | 415 |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 929 | 420 |
Impaired loans without a valuation allowance, Average Recorded Investment | 652 | 401 |
Impaired loans without a valuation allowance, Interest Income Recognized | 5 | 16 |
Impaired loans with a valuation allowance, Recorded Investment | 716 | 1,007 |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 729 | 1,033 |
Impaired loans with a valuation allowance, Related Allowance | 192 | 256 |
Impaired loans with a valuation allowance, Average Recorded Investment | 862 | 601 |
Impaired loans with a valuation allowance, Interest Income Recognized | 11 | 38 |
Non PCI Loans [Member] | Construction and Land Development [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans without a valuation allowance, Recorded Investment | 547 | 547 |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 547 | 547 |
Impaired loans without a valuation allowance, Average Recorded Investment | 547 | 628 |
Impaired loans without a valuation allowance, Interest Income Recognized | 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 with a valuation allowance, Average Recorded Investment | 0 | 0 |
Impaired loans with a valuation allowance, Interest Income Recognized | 0 | 0 |
Non PCI Loans [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans without a valuation allowance, Recorded Investment | 52 | 41 |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 51 | 41 |
Impaired loans without a valuation allowance, Average Recorded Investment | 47 | 44 |
Impaired loans without a valuation allowance, Interest Income Recognized | 1 | 3 |
Impaired loans with a valuation allowance, Recorded Investment | 161 | 172 |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 162 | 172 |
Impaired loans with a valuation allowance, Related Allowance | 99 | 172 |
Impaired loans with a valuation allowance, Average Recorded Investment | 167 | 117 |
Impaired loans with a valuation allowance, Interest Income Recognized | 1 | 10 |
Non PCI 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 without a valuation allowance, Average Recorded Investment | 0 | 0 |
Impaired loans without a valuation allowance, Interest Income Recognized | 0 | 0 |
Impaired loans with a valuation allowance, Recorded Investment | 112 | 12 |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 113 | 13 |
Impaired loans with a valuation allowance, Related Allowance | 78 | 12 |
Impaired loans with a valuation allowance, Average Recorded Investment | 62 | 2 |
Impaired loans with a valuation allowance, Interest Income Recognized | $ 1 | 1 |
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with a valuation allowance, Recorded Investment | 16 | |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 123 | |
Impaired loans with a valuation allowance, Related Allowance | 16 | |
Impaired loans with a valuation allowance, Average Recorded Investment | 3 | |
Impaired loans with a valuation allowance, Interest Income Recognized | $ 16 |
Loans and Allowance for Loan 41
Loans and Allowance for Loan Losses - Purchased Credit Impaired Loans (Details) - Purchased Credit Impaired Loans [Member] - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ||
Total loans | $ 40,292 | $ 43,577 |
Less remaining purchase discount | (10,456) | (10,783) |
Total loans, net of purchase discount | 29,836 | 32,794 |
Less: Allowance for loan losses | 0 | (16) |
Carrying amount, net of allowance | 29,836 | 32,778 |
Commercial Real Estate [Member] | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ||
Total loans | 21,866 | 23,366 |
Consumer Real Estate [Member] | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ||
Total loans | 9,849 | 10,764 |
Construction and Land Development [Member] | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ||
Total loans | 6,109 | 6,285 |
Commercial and Industrial [Member] | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ||
Total loans | 1,191 | 1,452 |
Consumer and Other [Member] | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ||
Total loans | $ 1,277 | $ 1,710 |
Loans and Allowance for Loan 42
Loans and Allowance for Loan Losses - Accretable Yield Roll Forward (Details) - Purchased Credit Impaired Loans [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Accretable yield, beginning of period | $ 9,287 | $ 8,950 |
Additions | 0 | 0 |
Accretion income | (1,101) | (697) |
Reclassification to accretable | 262 | 244 |
Other changes, net | (668) | (15) |
Accretable yield | $ 7,780 | $ 8,482 |
Commitments and Contingent Li43
Commitments and Contingent Liabilities (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Line of Credit Facility [Line Items] | |
Commitments to extend credit | $ 256.2 |
Standby letters of credit | $ 3.1 |
Standby Letters of Credit [Member] | |
Line of Credit Facility [Line Items] | |
Standby letter of credit term, or less | 2 years |
Fair Value Disclosures - Assets
Fair Value Disclosures - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | $ 156,209,802 | $ 151,944,567 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 156,210,000 | 151,944,000 |
Significant Other Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
U.S. Government-sponsored enterprises (GSEs) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 29,303,000 | 25,776,000 |
U.S. Government-sponsored enterprises (GSEs) [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
U.S. Government-sponsored enterprises (GSEs) [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 29,303,000 | 25,776,000 |
U.S. Government-sponsored enterprises (GSEs) [Member] | Significant Other Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
Mortgage-backed securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 116,097,000 | 116,215,000 |
Mortgage-backed securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
Mortgage-backed securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 116,097,000 | 116,215,000 |
Mortgage-backed securities [Member] | Significant Other Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
Other debt securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 924,000 | 950,000 |
Other debt securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
Other debt securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 924,000 | 950,000 |
Other debt securities [Member] | Significant Other Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
Municipal securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 9,886,000 | 9,003,000 |
Municipal securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
Municipal securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 9,886,000 | 9,003,000 |
Municipal securities [Member] | Significant Other Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | $ 0 | $ 0 |
Fair Value Disclosures - Asse45
Fair Value Disclosures - Assets and Liabilities Measured on Nonrecurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Impaired loans | $ 620 | $ 769 |
Foreclosed assets | 2,665 | 3,254 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Impaired loans | 0 | 0 |
Foreclosed assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Impaired loans | 0 | 0 |
Foreclosed assets | 0 | 0 |
Significant Other Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Impaired loans | 620 | 769 |
Foreclosed assets | $ 2,665 | $ 3,254 |
Fair Value Disclosures Fair Val
Fair Value Disclosures Fair Value Disclosures - Unobservable Inputs (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans | $ 620,000 | $ 769,000 |
Foreclosed assets | $ 2,665,057 | $ 3,254,392 |
Impaired loans [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Valuation techniques | Appraisal | Appraisal |
Significant other unobservable input | Appraisal Discounts | Appraisal Discounts |
Weighted average of input | 37.00% | 36.00% |
Foreclosed assets [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Valuation techniques | Appraisal | Appraisal |
Significant other unobservable input | Appraisal Discounts | Appraisal Discounts |
Weighted average of input | 21.00% | 18.00% |
Fair Value Disclosures - Carryi
Fair Value Disclosures - Carrying Amount and Estimated Fair Value of Financial Instruments (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Assets: | ||
Securities available for sale | $ 156,209,802 | $ 151,944,567 |
Restricted investments | 7,808,300 | 6,430,700 |
Liabilities: | ||
Noninterest-bearing demand deposits | 276,248,990 | 220,520,287 |
Interest-bearing demand deposits | 278,965,430 | 231,643,508 |
Time deposits | 453,276,452 | 442,774,094 |
Level 1 [Member] | ||
Assets: | ||
Cash and cash equivalents | 96,710,000 | 113,027,000 |
Securities available for sale | 0 | 0 |
Level 2 [Member] | ||
Assets: | ||
Securities available for sale | 156,210,000 | 151,944,000 |
Liabilities: | ||
Noninterest-bearing demand deposits | 276,249,000 | 220,520,000 |
Interest-bearing demand deposits | 278,965,000 | 231,644,000 |
Money Market and Savings deposits | 491,243,000 | 543,645,000 |
Time deposits | 453,943,000 | 443,547,000 |
Securities sold under agreements to repurchase | 15,968,000 | 24,055,000 |
Federal Home Loan Bank advances and other borrowings | 30,000,000 | 43,600,000 |
Level 3 [Member] | ||
Assets: | ||
Securities available for sale | 0 | 0 |
Loans, net | 1,373,919,000 | 1,292,303,000 |
Carrying Amount [Member] | ||
Assets: | ||
Cash and cash equivalents | 96,710,000 | 113,027,000 |
Securities available for sale | 156,210,000 | 151,944,000 |
Restricted investments | 7,808,000 | 6,431,000 |
Loans, net | 1,367,780,000 | 1,317,398,000 |
Liabilities: | ||
Noninterest-bearing demand deposits | 276,249,000 | 220,520,000 |
Interest-bearing demand deposits | 278,965,000 | 231,644,000 |
Money Market and Savings deposits | 491,243,000 | 543,645,000 |
Time deposits | 453,276,000 | 442,774,000 |
Securities sold under agreements to repurchase | 15,968,000 | 24,055,000 |
Federal Home Loan Bank advances and other borrowings | 30,000,000 | 43,600,000 |
Estimated Fair Value [Member] | ||
Assets: | ||
Cash and cash equivalents | 96,710,000 | 113,027,000 |
Securities available for sale | 156,210,000 | 151,944,000 |
Loans, net | 1,373,919,000 | 1,292,303,000 |
Liabilities: | ||
Noninterest-bearing demand deposits | 276,249,000 | 250,520,000 |
Interest-bearing demand deposits | 278,965,000 | 231,644,000 |
Money Market and Savings deposits | 491,243,000 | 543,645,000 |
Time deposits | 453,943,000 | 443,547,000 |
Securities sold under agreements to repurchase | 15,968,000 | 24,055,000 |
Federal Home Loan Bank advances and other borrowings | $ 30,000,000 | $ 43,600,000 |
Small Business Lending Fund - N
Small Business Lending Fund - Narrative (Details) - USD ($) | Mar. 06, 2017 | Jan. 30, 2017 | Feb. 04, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 |
Class of Stock [Line Items] | ||||||||
Preferred stock, shares issued (in shares) | 0 | 0 | ||||||
Preferred stock, dividend rate (as a percent) | 9.00% | 1.00% | ||||||
Preferred stock dividends | $ 0 | $ 195,000 | $ 1,022,000 | $ 120,000 | ||||
Proceeds from issuance of common stock | 950,521 | 37,516,178 | ||||||
Payments for redemption of preferred stock | $ 12,000,000 | |||||||
Payment of dividends on preferred stock | $ 195,000 | $ 0 | $ 195,000 | |||||
SBLF Program [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, shares issued (in shares) | 12,000 | |||||||
Share price (in dollars per share) | $ 1,000 | |||||||
Common Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Issuance of common stock in public offering (in shares) | 2,010,084 | |||||||
Proceeds from issuance of common stock | $ 33,200,000 |
Business Combination - Atlantic
Business Combination - Atlantic Capital Bank, N.A. Allocation of Purchase Price (Details) - USD ($) $ in Thousands | Nov. 01, 2017 | May 19, 2017 |
Business Acquisition [Line Items] | ||
Cash consideration paid | $ 15,826 | |
Fair value of assets acquired and liabilities assumed: | ||
Cash and cash equivalents | 16,810 | |
Premises and equipment | 8,668 | |
Prepaid and other assets | 6,360 | |
Total fair value of net assets acquired | 47,675 | |
Goodwill | $ 38,047 | |
Atlantic Capital Bank, N.A. [Member] | ||
Business Acquisition [Line Items] | ||
Cash consideration paid | $ 1,183 | |
Fair value of assets acquired and liabilities assumed: | ||
Cash and cash equivalents | 133 | |
Loans | 24,073 | |
Premises and equipment | 2,839 | |
Core deposit intangible | 310 | |
Prepaid and other assets | 77 | |
Deposits | (26,888) | |
Payables and other liabilities | (21) | |
Total fair value of net assets acquired | 523 | |
Goodwill | $ 660 |
Business Combination - Narrativ
Business Combination - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 01, 2017 | May 19, 2017 | Mar. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Cash consideration paid | $ 15,826 | |||
Pro-forma revenue | $ 6,800 | |||
Ownership percentage | 74.00% | |||
Pro forma, nonrecurring costs | $ 38,000 | |||
Pro-forma net income | 2,500 | |||
Pro forma revenue, acquisition | $ 25,200 | |||
Pro forma net income (loss) | $ 1,300 | |||
Fair value adjustment | 11 | |||
Atlantic Capital Bank, N.A. [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash consideration paid | $ 1,183 | |||
Pro-forma revenue | $ 309 | |||
Capstone Bancshares Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Exchange of shares | 0.85 | |||
Cash payment per share (in dollars per share) | $ 18.50 | |||
Percentage of common stock consideration transferred | 80.00% | |||
Percentage of cash consideration transferred | 20.00% |
Business Combination Business C
Business Combination Business Combination - Capstone Merger (Details) | Nov. 01, 2017USD ($)$ / shares |
Business Combinations [Abstract] | |
Shares of SMBK common stock issued to Capstone shareholders as of November 1, 2017 (in shares) | $ 2,908,094 |
Market price of SMBK common stock on November 1, 2017 | $ / shares | $ 23.49 |
Estimated fair value of SMBK common stock issued | $ 68,311,000 |
Estimated fair value of Capstone stock options | 1,585,000 |
Cash consideration paid | 15,826,000 |
Total consideration | 85,722,000 |
Fair value of assets acquired and liabilities assumed: | |
Cash and cash equivalents | 16,810,000 |
Investment securities available for sale | 51,638,000 |
Restricted investments | 1,049,000 |
Loans | 413,023,000 |
Premises and equipment | 8,668,000 |
Bank owned life insurance | 10,031,000 |
Core deposit intangible | 5,530,000 |
Other real estate owned | 410,000 |
Prepaid and other assets | 6,360,000 |
Deposits | (454,154,000) |
FHLB advances and other borrowings | (4,887,000) |
Payables and other liabilities | (6,803,000) |
Total fair value of net assets acquired | 47,675,000 |
Goodwill | $ 38,047,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - Director [Member] | Mar. 06, 2018shares | Mar. 01, 2018director$ / shares |
Related Party Transaction [Line Items] | ||
Number of shares sold (in shares) | 21,250 | |
Number of directors | director | 2 | |
Price per share (in dollars per share) | $ / shares | $ 21.70 | |
Steven B. Tucker [Member] | ||
Related Party Transaction [Line Items] | ||
Stock purchased (in shares) | 6,250 | |
W. Miller Welborn [Member] | ||
Related Party Transaction [Line Items] | ||
Stock purchased (in shares) | 15,000 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) | May 01, 2018shares |
Tennessee Bancshares [Member] | Common Stock [Member] | Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Common shares converted (in shares) | 0.8065 |