Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 01, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | HFBC | ||
Entity Registrant Name | HOPFED BANCORP INC | ||
Entity Central Index Key | 1,041,550 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 6,842,785 | ||
Entity Public Float | $ 78,752,393 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) shares in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and due from banks | $ 46,926,000 | $ 34,389,000 |
Interest-earning deposits | 7,772,000 | 6,050,000 |
Cash and cash equivalents | 54,698,000 | 40,439,000 |
Federal Home Loan Bank stock, at cost (note 2) | 4,428,000 | 4,428,000 |
Securities available for sale (notes 2 and 8) | 237,177,000 | 303,628,000 |
Loans held for sale | 2,792,000 | 1,444,000 |
Loans receivable, net of allowance for loan losses of $5,700 at December 31, 2015, and $6,289 at December 31, 2014 (notes 3 and 7) | 556,349,000 | 539,264,000 |
Accrued interest receivable | 4,139,000 | 4,576,000 |
Real estate and other assets owned (note 14) | 1,736,000 | 1,927,000 |
Bank owned life insurance | 10,319,000 | 9,984,000 |
Premises and equipment, net (note 4) | 24,034,000 | 22,940,000 |
Deferred tax assets (note 13) | 2,642,000 | 2,261,000 |
Intangible asset (note 5) | 33,000 | |
Other assets | 4,840,000 | 4,861,000 |
Total assets | 903,154,000 | 935,785,000 |
Deposits (note 6): | ||
Non-interest-bearing accounts | 125,070,000 | 115,051,000 |
Interest-bearing accounts: | ||
Interest bearing checking accounts | 203,779,000 | 186,616,000 |
Savings and money market accounts | 95,893,000 | 97,726,000 |
Other time deposits | 314,664,000 | 331,915,000 |
Total deposits | 739,406,000 | 731,308,000 |
Advances from Federal Home Loan Bank (note 7) | 15,000,000 | 34,000,000 |
Repurchase agreements (note 8) | 45,770,000 | 57,358,000 |
Subordinated debentures (note 10) | 10,310,000 | 10,310,000 |
Advances from borrowers for taxes and insurance | 614,000 | 513,000 |
Dividends payable | 287,000 | 301,000 |
Accrued expenses and other liabilities | 4,137,000 | 3,593,000 |
Total liabilities | $ 815,524,000 | $ 837,383,000 |
Stockholders' equity | ||
Preferred stock, par value $0.01 per share; authorized - 500,000 shares; no shares issued or outstanding at December 31, 2015 and December 31, 2014 | ||
Common stock, par value $.01 per share; authorized 15,000,000 shares; 7,951,699 issued and 6,865,811 outstanding at December 31, 2015, and 7,949,665 issued and 7,171,282 outstanding at December 31, 2014 | $ 79,000 | $ 79,000 |
Additional paid-in-capital | 58,604,000 | 58,466,000 |
Retained earnings | 47,124,000 | 45,729,000 |
Treasury stock | $ (13,471,000) | (9,429,000) |
Unearned ESOP Shares (at cost 546,413 shares at December 31, 2015 and none at December 31, 2014) | (7,180) | |
Accumulated other comprehensive income, net of taxes | $ 2,474,000 | 3,557,000 |
Total stockholders' equity | 87,630,000 | 98,402,000 |
Total liabilities and stockholders' equity | $ 903,154,000 | $ 935,785,000 |
Commitments and contingencies (notes 11 and 15) |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Loans receivable, allowance for loan losses | $ 5,700 | $ 6,289 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 15,000,000 | 15,000,000 |
Common stock, shares issued | 7,951,699 | 7,949,665 |
Common stock, shares outstanding | 6,865,811 | 7,171,282 |
Treasury stock, shares | 1,085,888 | 778,383 |
Unearned ESOP Shares at cost | 546,413 | 0 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest and dividend income | |||
Loans receivable | $ 25,300,000 | $ 26,025,000 | $ 26,741,000 |
Securities available for sale | 6,149,000 | 6,548,000 | 6,873,000 |
Nontaxable securities available for sale | 1,651,000 | 2,081,000 | 2,219,000 |
Interest-earning deposits | 22,000 | 26,000 | 24,000 |
Total interest and dividend income | 33,122,000 | 34,680,000 | 35,857,000 |
Interest expense: | |||
Deposits (note 6) | 5,031,000 | 5,603,000 | 7,114,000 |
Advances from Federal Home loan Bank | 289,000 | 1,665,000 | 1,780,000 |
Repurchase agreements | 491,000 | 874,000 | 954,000 |
Subordinated debentures | 739,000 | 737,000 | 733,000 |
Total interest expense | 6,550,000 | 8,879,000 | 10,581,000 |
Net interest income | 26,572,000 | 25,801,000 | 25,276,000 |
Provision for loan losses (note 3) | 1,051,000 | (2,273,000) | 1,604,000 |
Net interest income after provision for loan losses | 25,521,000 | 28,074,000 | 23,672,000 |
Non-interest income: | |||
Other-than-temporary impairment losses on debt securities | (511,000) | ||
Portion of losses recognized in other comprehensive income | 237,000 | 111,000 | |
Net impairment losses recognized in earnings (note 2) | 17,000 | (400,000) | |
Service charges | 2,925,000 | 3,354,000 | 3,670,000 |
Merchant card income | 1,130,000 | 1,075,000 | 983,000 |
Mortgage origination income | 1,175,000 | 719,000 | 634,000 |
Realized gain from sale of securities available for sale, net (note 2) | 691,000 | 578,000 | 1,661,000 |
Income from bank owned life insurance | 335,000 | 307,000 | 354,000 |
Financial services commission | 685,000 | 980,000 | 1,250,000 |
Gain on sale of assets | 412,000 | ||
Other operating income | 661,000 | 827,000 | 808,000 |
Total non-interest income | 7,602,000 | 7,840,000 | 9,372,000 |
Non-interest expenses: | |||
Salaries and benefits (note 12) | 15,810,000 | 15,222,000 | 14,733,000 |
Occupancy expense (note 4) | 3,077,000 | 3,217,000 | 3,475,000 |
Data processing expense | 2,827,000 | 2,887,000 | 2,695,000 |
State deposit tax | 1,018,000 | 1,336,000 | 581,000 |
Intangible amortization | 33,000 | 97,000 | 162,000 |
Professional services | 1,506,000 | 1,331,000 | 1,773,000 |
Advertising expense | 1,302,000 | 1,341,000 | 1,236,000 |
Postage and communications expense | 577,000 | 577,000 | 567,000 |
Supplies expense | 527,000 | 627,000 | 495,000 |
Deposit insurance and examination fees | 586,000 | 724,000 | 727,000 |
Loss on sale of assets | 1,000 | 25,000 | 12,000 |
Loss on sale of real estate owned | 716,000 | 208,000 | 140,000 |
Expenses related to real estate owned | 511,000 | 266,000 | 402,000 |
Loss on sale of loan note | 1,781,000 | ||
Loss on early debt extinguishment | 2,510,000 | ||
Other operating expenses | 1,954,000 | 1,767,000 | 1,640,000 |
Total non-interest expense | 30,445,000 | 33,916,000 | 28,638,000 |
Income before income tax expense | 2,678,000 | 1,998,000 | 4,406,000 |
Income tax expense (benefit) (note 13) | 274,000 | (201,000) | 644,000 |
Net income | $ 2,404,000 | $ 2,199,000 | $ 3,762,000 |
Earnings per share available to common stockholders (note 18): | |||
Basic | $ 0.38 | $ 0.30 | $ 0.50 |
Fully diluted | $ 0.38 | $ 0.30 | $ 0.50 |
Weighted average shares outstanding - basic | 6,372,277 | 7,306,078 | 7,483,606 |
Weighted average shares outstanding - diluted | 6,372,277 | 7,306,078 | 7,483,606 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 2,404 | $ 2,199 | $ 3,762 |
Other comprehensive income, net of tax: | |||
Unrealized gain (loss) on non - Other than temporary impaired Investment securities available for sale, net of taxes | (1,121) | 5,130 | (10,568) |
Unrealized gain on OTTI securities, net of taxes | 237 | 111 | |
Unrealized gain on derivatives, net of taxes | 257 | 237 | 248 |
Reclassification adjustment for gains and accretion included in net income, net of taxes | (456) | (381) | (832) |
Total other comprehensive income (loss) | (1,083) | 4,986 | (11,152) |
Comprehensive income (loss) | $ 1,321 | $ 7,185 | $ (7,390) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Preferred Shares [Member] | Common Stock Warrant [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Preferred Treasury Stock [Member] | Common Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Unearned ESOP Shares [Member] |
Beginning balance at Dec. 31, 2012 | $ 104,999 | $ 79 | $ 556 | $ 76,288 | $ 41,829 | $ (18,400) | $ (5,076) | $ 9,723 | ||
Beginning balance, Shares at Dec. 31, 2012 | 7,502,812 | 18,400 | ||||||||
Net income | 3,762 | 3,762 | ||||||||
Restricted stock awards | 0 | $ 0 | $ 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Restricted stock awards, shares | 21,559 | |||||||||
Net change in unrealized gain (losses) on securities available for sale, net of taxes | (11,400) | (11,400) | ||||||||
Net change in unrealized losses on derivatives, net of taxes | 248 | 248 | ||||||||
Preferred stock retired | (18,400) | 18,400 | ||||||||
Preferred stock retired, shares | (18,400) | |||||||||
Cash dividend to common stockholders' | (897) | (897) | ||||||||
Common stock repurchase | (853) | (853) | ||||||||
Common stock repurchase, shares | (76,468) | |||||||||
Cash repurchase of warrant | (257) | (556) | 299 | |||||||
Compensation expense, restricted stock awards | 115 | 115 | ||||||||
Ending balance at Dec. 31, 2013 | 95,717 | $ 79 | 58,302 | 44,694 | (5,929) | (1,429) | ||||
Ending balance, Shares at Dec. 31, 2013 | 7,447,903 | |||||||||
Net income | 2,199 | 2,199 | ||||||||
Restricted stock awards | 0 | $ 0 | $ 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Restricted stock awards, shares | 22,378 | |||||||||
Net change in unrealized gain (losses) on securities available for sale, net of taxes | 4,749 | 4,749 | ||||||||
Net change in unrealized losses on derivatives, net of taxes | 237 | 237 | ||||||||
Cash dividend to common stockholders' | (1,164) | (1,164) | ||||||||
Common stock repurchase | (3,500) | (3,500) | ||||||||
Common stock repurchase, shares | (298,999) | |||||||||
Compensation expense, restricted stock awards | 164 | 164 | ||||||||
Ending balance at Dec. 31, 2014 | 98,402 | $ 79 | 58,466 | 45,729 | (9,429) | 3,557 | ||||
Ending balance, Shares at Dec. 31, 2014 | 7,171,282 | |||||||||
Net income | 2,404 | 2,404 | ||||||||
Restricted stock awards | 0 | $ 0 | $ 0 | $ 0 | 0 | 0 | $ 0 | 0 | 0 | $ 0 |
Restricted stock awards, shares | 2,034 | |||||||||
Net change in unrealized gain (losses) on securities available for sale, net of taxes | (1,340) | (1,340) | ||||||||
Net change in unrealized losses on derivatives, net of taxes | 257 | 257 | ||||||||
Cash dividend to common stockholders' | (1,009) | (1,009) | ||||||||
Common stock repurchase | $ (11,926) | (11,926) | ||||||||
Common stock repurchase, shares | (252,798) | (907,505) | ||||||||
Common stock issued | 7,884 | |||||||||
Common stock issued, shares | 600,000,000 | (7,884,000) | ||||||||
ESOP Shares Earned | $ 652 | (52) | ||||||||
ESOP Shares Earned, shares | 704,000 | |||||||||
Compensation expense, restricted stock awards | 190 | 190 | ||||||||
Ending balance at Dec. 31, 2015 | $ 87,630 | $ 79 | $ 58,604 | $ 47,124 | $ (13,471) | $ 2,474 | $ (7,180) | |||
Ending balance, Shares at Dec. 31, 2015 | 6,865,811 |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net change in unrealized gain (losses) on securities available for sale, net of taxes | $ 690 | $ (2,446) | $ 5,873 |
Net change in unrealized losses on derivatives, net of income tax benefit | $ (132) | $ (122) | $ (128) |
Cash dividend to common stockholders' | $ 0.16 | $ 0.16 | $ 0.12 |
Retained Earnings [Member] | |||
Cash dividend to common stockholders' | $ 0.16 | $ 0.16 | $ 0.12 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Net change in unrealized gain (losses) on securities available for sale, net of taxes | $ 690 | $ (2,446) | $ 5,873 |
Net change in unrealized losses on derivatives, net of income tax benefit | $ (132) | $ (122) | $ (128) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 2,404,000 | $ 2,199,000 | $ 3,762,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for loan losses | 1,051,000 | (2,273,000) | 1,604,000 |
Depreciation | 1,266,000 | 1,336,000 | 1,502,000 |
Amortization of intangible assets | 33,000 | 97,000 | 162,000 |
Amortization of investment premiums and discounts, net | 1,650,000 | 2,076,000 | 2,561,000 |
Other than temporary impairment charge (recovery) on available for sale securities | (17,000) | 400,000 | |
Expense (benefit) for deferred income taxes | 177,000 | (231,000) | 566,000 |
Stock compensation expense | 138,000 | 164,000 | 115,000 |
Income from bank owned life insurance | (335,000) | (307,000) | (354,000) |
Gain on sale of securities available for sale | (691,000) | (578,000) | (1,661,000) |
Gain on sales of loans | (1,175,000) | (719,000) | (634,000) |
Loss on sale of commercial real estate loan | 1,781,000 | ||
Loss on sale of premises and equipment | 1,000 | 25,000 | 12,000 |
Proceeds from sales of loans | 43,847,000 | 37,300,000 | 17,577,000 |
Loss on sale of foreclosed assets | 716,000 | 208,000 | 140,000 |
Originations of loans sold | (44,020,000) | (32,835,000) | (16,943,000) |
(Increase) decrease in: | |||
Accrued interest receivable | 437,000 | 657,000 | 165,000 |
Other assets (increase) | 21,000 | 1,513,000 | 171,000 |
Increase (decrease) in accrued expenses and other liabilities | 933,000 | (277,000) | 170,000 |
Net cash provided by operating activities | 6,436,000 | 10,136,000 | 9,315,000 |
Cash flows from investing activities | |||
Proceeds from sales, calls and maturities of securities available for sale | 120,354,000 | 112,235,000 | 124,471,000 |
Purchase of securities available for sale | (56,875,000) | (91,257,000) | (105,605,000) |
Net (increase) decrease in loans | (19,005,000) | (1,908,000) | (21,630,000) |
Proceeds from sale of foreclosed assets | 344,000 | 1,118,000 | 908,000 |
Purchase of premises and equipment | (2,361,000) | (1,168,000) | (2,473,000) |
Net cash provided by (used in) investing activities | 42,457,000 | 19,020,000 | (4,329,000) |
Cash flows from financing activities: | |||
Net increase (decrease) in deposits | 8,098,000 | (31,689,000) | 3,132,000 |
Increase (decrease) in advance payments by borrowers for taxes and insurance | 101,000 | (8,000) | 125,000 |
Advances from Federal Home Loan Bank | 41,000,000 | 57,000,000 | 23,000,000 |
Repayment of advances from Federal Home Loan Bank | (60,000,000) | (69,780,000) | (19,961,000) |
Increase (decrease) in repurchase agreements | (11,588,000) | 4,599,000 | 9,251,000 |
Repurchase of common stock | (11,926,000) | (3,500,000) | (853,000) |
Repurchase of common stock warrant | (257,000) | ||
Proceeds on repayment of ESOP loan | 704,000 | ||
Dividends paid on common stock | (1,023,000) | (1,187,000) | (751,000) |
Net cash provided by (used in) financing activities | (34,634,000) | (44,565,000) | 13,686,000 |
Increase (decrease) in cash and cash equivalents | 14,259,000 | (15,409,000) | 18,672,000 |
Cash and cash equivalents, beginning of period | 40,439,000 | 55,848,000 | 37,176,000 |
Cash and cash equivalents, end of period | 54,698,000 | 40,439,000 | 55,848,000 |
Supplemental disclosures of cash flow information: | |||
Interest paid | 6,587,000 | 8,977,000 | 10,840,000 |
Income taxes paid (refund) | (900,000) | (718,000) | (487,000) |
Supplemental disclosures of non-cash investing and financing activities: | |||
Loans charged off | 1,867,000 | 1,232,000 | 4,444,000 |
Loan transferred to held for sale | 6,987,000 | ||
Foreclosures and in substance foreclosures of loans during year | 869,000 | 1,579,000 | 1,379,000 |
Net unrealized gains (losses) on investment securities classified as available for sale | (2,030,000) | 7,195,000 | (17,273,000) |
Increase (decrease) in deferred tax asset related to unrealized gain (losses) on investments | 691,000 | (2,446,000) | 5,873,000 |
Dividends declared and payable | 287,000 | 301,000 | 325,000 |
Sale and financing of stock to ESOP | 7,884,000 | ||
Issue of unearned restricted stock | $ 25,000 | $ 260,000 | $ 232,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (1) Summary of Significant Accounting Policies Nature of Operations and Customer Concentration HopFed Bancorp, Inc. (the Corporation) is a bank holding company incorporated in the state of Delaware and headquartered in Hopkinsville, Kentucky. The Corporation’s principal business activities are conducted through its wholly-owned subsidiary, Heritage Bank USA, Inc. (the Bank), a Kentucky state chartered commercial bank engaged in the business of accepting deposits and providing mortgage, consumer, construction and commercial loans to the general public through its retail banking offices. The Bank’s business activities are primarily limited to western Kentucky and middle and western Tennessee. The Bank is subject to competition from other financial institutions. Deposits at the Bank are insured up to the applicable limits by the Federal Deposit Insurance Corporation (FDIC). As part of the enactment of the Dodd-Frank Financial Reform Act of 2010, the Corporation and Bank’s former regulator, the Office of Thrift Supervision, was eliminated on July 21, 2011. Prior to June 5, 2013, the Bank was subject to comprehensive regulation, examination and supervision by the Office of Comptroller of the Currency (OCC) and the FDIC. After June 5, 2013, the Bank’s legal name was changed to Heritage Bank USA, Inc. and the Bank was granted a Kentucky commercial bank charter and is now supervised by the Kentucky Department of Financial Institutions (“KDFI”) and the Federal Deposit Insurance Corporation (“FDIC”). Supervision of the Corporation continues to be conducted by the Federal Reserve Bank of Saint Louis (“FED”). A substantial portion of the Bank’s loans are secured by real estate in the western Kentucky and middle and west Tennessee markets. In addition, foreclosed real estate is located in this same market. Accordingly, the ultimate ability to collect on a substantial portion of the Bank’s loan portfolio and the recovery of a substantial portion of the carrying amount of foreclosed real estate is susceptible to changes in local market conditions. Principles of Consolidation The consolidated financial statements include the accounts of the Corporation and the Bank (collectively the Company) for all periods. Significant inter-company balances and transactions have been eliminated in consolidation. Accounting The accounting and reporting policies of the Company are in accordance with accounting principles generally accepted in the United States of America and conform to general practices in the banking industry. The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity (VIE) under accounting principles generally accepted in the United States. Voting interest entities in which the total equity investment is a risk is sufficient to enable the entity to finance itself independently and provides the equity holders with the obligation to absorb losses, the right to receive residual returns and the right to make decision about the entity’s activities. The Company consolidates voting interest entities in which it has all, or at least a majority of, the voting interest. As defined in applicable accounting standards, VIE’s are entities in which it has all, or at least a majority of, the voting interest. A controlling financial interest in a VIE is present when an enterprise has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and an obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The subsidiaries, HopFed Capital Trust I and Fort Webb LP, LLC are VIEs for which the Company is not the primary beneficiary. Accordingly, these accounts are not included in the Company’s consolidated financial statements. The Company has evaluated subsequent events for potential impact and disclosure through the issue date of these consolidated financial statements. Estimates In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheets and revenues and expenses for each year. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. In connection with the determination of the allowances for loan losses and foreclosed real estate, management obtains independent appraisals for significant collateral. Cash and Cash Equivalents Cash and cash equivalents are defined as cash on hand, amounts due on demand from commercial banks, interest-earning deposits in other financial institutions and federal funds sold with maturities of three months or less. The Company is required to maintain reserve funds in either cash on hand or on deposit with the Federal Reserve Bank. At December 31, 2015, the Company’s reserve requirement was met to available cash on hand. Securities The Company reports debt, readily-marketable equity, mortgage-backed and mortgage related securities in one of the following categories: (i) “trading” (held for current resale) which are to be reported at fair value, with unrealized gains and losses included in earnings; and (ii) “available for sale” (all other debt, equity, mortgage-backed and mortgage related securities) which are to be reported at fair value, with unrealized gains and losses reported net of tax as a separate component of stockholders’ equity. At the time of new security purchases, a determination is made as to the appropriate classification. Realized and unrealized gains and losses on trading securities are included in net income. Unrealized gains and losses on securities available for sale are recognized as direct increases or decreases in stockholders’ equity, net of any tax effect. Cost of securities sold is recognized using the specific identification method. Interest income on securities is recognized as earned. The Company purchases many agency bonds at either a premium or discount to its par value. Premiums and discounts on agency bonds are amortized using the net interest method. For callable bonds purchased at a premium, the premium is amortized to the first call date. If the bond is not called on that date, the premium is fully amortized and the Company recognizes an increase in the net yield of the investment. The Company has determined that callable bonds purchased at a premium have a high likelihood of being called, and the decision to amortize premiums to their first call is a more conservative method of recognizing income and any variance from amortizing to contractual maturity is not material to the consolidated financial statements. For agency bonds purchased at a discount, the discount is accreted to the final maturity date. For callable bonds purchased at discount and called before maturity, the Company recognizes a gain on the sale of securities. The Company amortizes premiums and accretes discounts on mortgage back securities and collateralized mortgage obligations based on the securities three month average prepayment speed. Other Than Temporary Impairment A decline in the fair value of any available-for-sale security below cost that is deemed to be other-than-temporary results in a reduction in the carrying amount to fair value. To determine whether impairment is other-than-temporary, management considers whether the entity expects to recover the entire amortized cost basis of the security by reviewing the present value of the future cash flows associated with the security. The shortfall of the present value of the cash flows expected to be collected in relation to the amortized cost basis is referred to as a credit loss. If a credit loss is identified, management then considers whether it is more-likely-than-not Other Securities Other securities which are not actively traded and may be restricted, such as Federal Home Loan Bank (FHLB) stock are recognized at cost, as the value is not considered impaired. Loans Receivable Loans receivable are stated at unpaid principal balances, less the allowance for loan losses and deferred loan cost. The Statement of Financial Accounting Standards ASC 310-20, Nonrefundable Fees and Other Costs Associated with Originating or Acquiring Loans and Initial Direct Costs of Leases, The Company provides an allowance for loan losses and includes in operating expenses a provision for loan losses determined by management. Management’s periodic evaluation of the adequacy of the allowance is based on the Company’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, and current economic conditions. Management’s estimate of the adequacy of the allowance for loan loss can be classified as either a reserve for currently classified loans or estimates of future losses in the current loan portfolio. Loans are considered to be impaired when, in management’s judgment, principal or interest is not collectible according to the contractual terms of the loan agreement. When conducting loan evaluations, management considers various factors such as historical loan performance, the financial condition of the borrower and adequacy of collateral to determine if a loan is impaired. Impaired loans and loans classified as Troubled Debt Restructurings (“TDR’s”) may be classified as either substandard or doubtful and reserved for based on individual loans risk for loss. Loans not considered impaired may be classified as either special mention or watch and may have an allowance established for it. Typically, unimpaired classified loans exhibit some form of weakness in either industry trends, collateral, or cash flow that result in a default risk greater than that of the Company’s typical loan. All classified amounts include all unpaid interest and fees as well as the principal balance outstanding. The measurement of impaired loans generally may be based on the present value of future cash flows discounted at the historical effective interest rate. However, the majority of the Company’s problem loans become collateral dependent at the time they are judged to be impaired. Therefore, the measurement of impaired requires the Company to obtain a new appraisal to obtain the fair value of the collateral. The appraised value is then discounted to an estimated of the Company’s net realizable value, reducing the appraised value by the amount of holding and selling cost. When the measured amount of an impaired loan is less than the recorded investment in the loan, the impairment is recorded as a charge to income and a valuation allowance, which is included as a component of the allowance for loan losses. For loans not individually evaluated, management considers the Company’s recent charge off history, the Company’s current past due and non-accrual trends, banking industry trends and both local and national economic conditions when making an estimate as to the amount to reserve for losses. Management believes it has established the allowance in accordance with accounting principles generally accepted in the United States of America and has taken into account the views of its regulators and the current economic environment. Loans held for sale Mortgage loans originated and intended for sale are carried at the lower of cost or estimated fair value as determined on a loan-by-loan Fixed Rate Mortgage Originations The Company operates a mortgage division that originates mortgage loans in the name of assorted investors, including Federal Home Loan Mortgage Corporation (Freddie Mac). Originations for Freddie Mac are sold through the Bank while originations to other investors are processed for a fee. On a limited basis, loans sold to Freddie Mac may result in the Bank retaining loan servicing rights. In recent years, customers have chosen lower origination rates over having their loan locally serviced; thereby limiting the amount of new loans sold with servicing retained. At December 31, 2015, the Bank maintained a servicing portfolio of one to four family real estate loans of approximately $22.8 million. For the years ended December 31, 2015, December 31, 2014, and December 31, 2013, the Bank has reviewed the value of the servicing asset as well as the operational cost associated with servicing the portfolio. The Bank has determined that the values of its servicing rights are not material to the Company’s consolidated financial statements. Real Estate and Other Assets Owned Assets acquired through, or in lieu of, loan foreclosure or repossession carried at the lower of cost or fair value less selling expenses. Costs of improving the assets are capitalized, whereas costs relating to holding the property are expensed. Management conducts periodic valuations (no less than annually) and any adjustments to value are recognized in the current period’s operations. Brokered Deposits The Company may choose to attract deposits from several sources, including using outside brokers to assist in obtaining time deposits using national distribution channels. Brokered deposits offer the Company an alternative to Federal Home Loan Bank advances and local retail time deposits Repurchase Agreements The Company sells investments from its portfolio to business and municipal customers with a written agreement to repurchase those investments on the next business day. The repurchase product gives business customers the opportunity to earn income on liquid cash reserves. These funds are overnight borrowings of the Company secured by Company assets and are not FDIC insured. Treasury Stock The Company may occasional purchase its own common stock either in open market transactions or privately negotiated transactions. The value of the Company’s common stock held in treasury is listed at cost. Unearned ESOP Shares The Company offers an Employee Stock Ownership Plan (“ESOP”) to the employees of the Company. The unearned portion of common stock of the Company held in the ESOP Trust is recorded on the balance sheet at cost. Common stock is released from the ESOP Trust to the Company’s employees as the Bank makes payments on the loan to the Corporation on behalf of the ESOP Trust. Comprehensive Income Comprehensive income consists of net income and other comprehensive income, net of applicable income taxes. Other comprehensive income includes unrealized appreciation (depreciation) on available-for-sale securities and unrealized appreciation (depreciation) on available-for-sale securities for which a portion of an other than temporary impairment has been recognized in income. Revenue Recognition Mortgage loans held for sale are generally delivered to secondary market investors under best efforts sales commitments entered into prior to the closing of the individual loan. Loan sales and related gains or losses are recognized at settlement. Loan fees earned for the servicing of secondary market loans are recognized as earned. Interest income on loans receivable is reported on the interest method. Interest income is not reported when full loan repayment is in doubt, typically when the loan is impaired, placed in non-accrual status, or payments are past due more than 90 days. Interest earned as reported as income is reversed on any loans classified as non-accrual or past due more than 90 days. Interest may continue to accrue on loans over 90 days past due if they are well secured and in the process of collection. Income Taxes Income taxes are accounted for through the use of the asset and liability method. Under the asset and liability method, deferred taxes are recognized for the tax consequences of temporary differences by applying enacted statutory rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The effect on deferred taxes of a change in tax rates would be recognized in income in the period that includes the enactment date. The Company files its federal and Kentucky income tax returns as well as its Kentucky and Tennessee franchise and excise tax returns on a consolidated basis with its subsidiaries. All taxes are accrued on a separate entity basis. Operating Segments The Company’s continuing operations include one primary segment, retail banking. The retail banking segment involves the origination of commercial, residential and consumer loans as well as the collections of deposits in eighteen branch offices. Premises and Equipment Land, land improvements, buildings, and furniture and equipment are carried at cost, less accumulated depreciation and amortization. Buildings and land improvements are depreciated generally by the straight-line method, and furniture and equipment are depreciated under various methods over the estimated useful lives of the assets. The Company capitalizes interest expense on construction in process at a rate equal to the Company’s cost of funds. The estimated useful lives used to compute depreciation are as follows: Land improvements 5-15 years Buildings 40 years Furniture and equipment 5-15 years Intangible Assets The core deposit intangible asset related to the middle Tennessee acquisition of June 2006 is amortized using the sum of the year’s digits method over an estimated period of nine years. At December 31, 2015, the core deposit intangible was fully amortized. Bank Owned Life Insurance Bank owned life insurance policies (BOLI) are recorded at the cash surrender value or the amount to be realized upon current redemption. The realization of the redemption value is evaluated for each insuring entity that holds insurance contracts annually by management. Advertising The Company expenses the production cost of advertising as incurred. Financial Instruments The Company has entered into off-balance-sheet financial instruments consisting of commitments to extend credit and commercial letters of credit. Such financial instruments are recorded in the consolidated financial statements when they are funded or related fees are incurred or received. Derivative Instruments Under guidelines ASC 815 , Accounting for Derivative Instruments and Hedging Activities A derivative instrument designated in a hedge relationship to mitigate exposure to changes in the fair value of an asset, liability or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges under ASC 815. Derivative instruments designated in a hedge relationship to mitigate exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Cash value hedges are accounted for by recording the fair value of the derivative instrument and the fair value related to the risk being hedged of the hedged asset or liability on the consolidated balance sheet with corresponding offsets recorded in the consolidated balance sheet. The adjustment to the hedged asset or liability is included in the basis of the hedged item, while the fair value of the derivative is recorded as a freestanding asset or liability. Actual cash receipts or payments and related amounts accrued during the period on derivatives included in a fair value hedge relationship are recorded as adjustments to the income or expense recorded on the hedged asset or liability. Under both the fair value and cash flow hedge methods, derivative gains and losses not effective in hedging the change in fair value or expected cash flows of the hedged item are recognized immediately in the income statement. At the hedge’s inception and at least quarterly thereafter, a formal assessment is performed to determine whether changes in the fair values or cash flows of the derivative instrument has been highly effective in offsetting changes in the fair values or cash flows of the hedged items and whether they are expected to be highly effective in the future. If it is determined a derivative instrument has not been, or will not continue to be highly effective as a hedge, hedged accounting is discontinued. ASC 815 basis adjustments recorded on hedged assets and liabilities are amortized over the remaining life of the hedged item beginning no later than when hedge accounting ceases. There were no fair value hedging gains or losses, as a result of hedge ineffectiveness, recognized for the years ended December 31, 2015, December 31, 2014, and December 31, 2013, respectively. Fair Values of Financial Instruments ASC 825, Disclosures about Fair Value of Financial Instruments, The following are the more significant methods and assumptions used by the Company in estimating its fair value disclosures for financial instruments: Cash and cash equivalents The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents approximate those assets’ fair values, because they mature within 90 days or less and do not present credit risk concerns. Interest earning deposits The carrying amounts reported in the consolidated balance sheets for interest earning deposits approximate those assets’ fair values, because they are considered overnight deposits and may be withdrawn at any time without penalty and do not present credit risk concerns. Available-for-sale securities Fair values for investment securities available-for-sale are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments provided by a third party pricing service. The Company reviews all securities in which the book value is greater than the market value for impairment that is other than temporary. For securities deemed to be other than temporarily impaired, the Company reduces the book value of the security to its market value by recognizing an impairment charge on its income statement. Loans held for sale Mortgage loans originated and intended to be sold are carried at the lower of cost or estimated fair value as determined on a loan by loan basis. Gains or losses are recognized at the time of ownership transfer. Net unrealized losses, if any, are recognized through a valuation allowance and charged to income. Loans receivable The fair values for of fixed-rate loans and variable rate loans that re-price on an infrequent basis is estimated using discounted cash flow analysis which considers future re-pricing dates and estimated repayment dates, and further using interest rates currently being offered for loans of similar type, terms to borrowers of similar credit quality. Loan fair value estimates include judgments regarding future expected loss experience and risk characteristics. The estimated fair value of variable-rate loans that re-price frequently and with have no significant change in credit risk is approximately the carrying value of the loan. Letters of credit The fair value of standby letters of credit is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements, the likelihood of the counter parties drawing on such financial instruments and the present creditworthiness of such counter parties. Such commitments have been made on terms which are competitive in the markets in which the Company operates, thus, the fair value of standby letters of credit equals the carrying value for the purposes of this disclosure. Accrued interest receivable Fair value is estimated to approximate the carrying amount because such amounts are expected to be received within 90 days or less and any credit concerns have been previously considered in the carrying value. Repurchase agreements Overnight repurchase agreements have a fair value at book, given that they mature overnight. The fair values for of longer date repurchase agreements is estimated using discounted cash flow analysis which considers the current market pricing for repurchase agreements of similar final maturities and collateral requirements. Bank owned life insurance The fair value of bank owned life insurance is the cash surrender value of the policy less redemption charges. By surrendering the policy, the Company is also subject to federal income taxes on all earnings previously recognized. Deposits The fair values disclosed for deposits with no stated maturity such as demand deposits, interest-bearing checking accounts and savings accounts are, by definition, equal to the amount payable on demand at the reporting date (that is, their carrying amounts). The fair values for certificates of deposit and other fixed maturity time deposits are estimated using a discounted cash flow calculation that applies interest rates currently being offered on such type accounts or similar accounts to a schedule of aggregated contractual maturities or similar maturities on such time deposits. Advances from the Federal Home Loan Bank (FHLB) The fair value of these advances is estimated by discounting the future cash flows of these advances using the current rates at which similar advances or similar financial instruments could be obtained. FHLB stock The fair value of FHLB stock is recognized at cost. Subordinated debentures The book value of subordinated debentures is cost. The subordinated debentures re-price quarterly at a rate equal to three month libor plus 3.10%. Treasury Stock The book value of treasury stock is cost and includes acquisition fees, if any. Unearned ESOP Shares The book value of unearned ESOP shares is cost. Off-Balance-Sheet Instruments Off-balance-sheet lending commitments approximate their fair values due to the short period of time before the commitment expires. Dividend Restrictions The Company is not permitted to pay a dividend to common shareholders if it fails to make a quarterly interest payment to the holders of the Company’s subordinated debentures. Furthermore, the Bank may be restricted in the payment of dividends to the Corporation by the KDFI or FDIC. Any restrictions imposed by either regulator would effectively limit the Company’s ability to pay a dividend to its common stockholders as discussed in Note 17. At December 31, 2015, there were no such restrictions. At December 31, 2015, the Corporation has approximately $2.1 million in cash on hand available to pay common dividends and repurchase treasury stock as outlined in Note 20. At December 31, 2015, the Bank may not pay an additional cash dividend to the Company without regulatory approval. Earnings Per Share Earnings per share (EPS) consists of two separate components, basic EPS and diluted EPS. Basic EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for each period presented. Diluted EPS is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding plus dilutive common stock equivalents (CSE). CSE consists of dilutive stock options granted through the Company’s stock option plan. Restricted stock awards represent future compensation expense and are dilutive. Common stock equivalents which are considered anti-dilutive are not included for the purposes of this calculation. Common stock warrants issued in December 2008 and all stock options outstanding are currently anti-dilutive and are not included for the purposes of this calculation. Stock Compensation The Company utilized the Black-Sholes valuation model to determine the fair value of stock options on the date of grant. The model derives the fair value of stock options based on certain assumptions related to the expected stock prices volatility, expected option life, risk-free rate of return and the dividend yield of the stock. The expected life of options granted is estimated based on historical employee exercise behavior. The risk free rate of return coincides with the expected life of the options and is based on the ten year Treasury note rate at the time the options are issued. The historical volatility levels of the Company’s common stock are used to estimate the expected stock price volatility. The set dividend yield is used to estimate the expected dividend yield of the stock. Effect of New Accounting Pronouncements ASU 2015-01, “Income Statement - Extraordinary and Unusual Items (Subtopic 225-20) – Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” ASU No. 2015-02, “Amendments to the Consolidation Analysis.” In May 2014, the FASB issued new guidance related to Revenue from Contracts with Customers Revenue Recognition On June 12, 2014, the FASB issued ASU 2014-11, which makes limited amendments to the guidance in ASC 860 on accounting for certain repurchase agreements (“repos”). ASU 2014-11 requires entities to account for repurchase-to-maturity transactions as secured borrowings (rather than as sales with forward repurchase agreements), (2) eliminates accounting guidance on linked repurchase financing transactions, and (3) expands disclosure requirements related to certain transfers of financial assets that are accounted for as sales and certain transfers (specifically, repos, securities lending transactions, and repurchase-to-maturity transactions) accounted for as secured borrowings. ASU 2014-11 also amends ASC 860 to clarify that repos and securities lending transactions that do not meet all of the de-recognition criteria in ASC 860-10-40-5 should be accounted for as secured borrowings. In addition, the ASU provides examples of repurchase and securities lending arrangements that illustrate whether a transferor has maintained effective control over the transferred financial assets. For public business entities, the accounting changes were effective beginning after January 1, 2015. The implementation of ASU 2014-11 did not have a material impact on the Company’s Consolidated Financial Statements. In September 2015, the FASB issued Accounting Standards Update No. 2015-16, Simplifying the Accounting for Measurement-Period Adjustments In January 2014, the FASB issued ASU No. 2014-04, Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. ASU 2015-02, “Consolidation (Topic 810) – Amendments to the Consolidation Analysis.” ASU 2015-03, “Interest – Imputation of Interest (Subtopic 835-30) – Simplifying the Presentation of Debt Issuance Costs ” ASU 2015-15, “Interest – Imputation of Interest (Subtopic 835-30) – Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting.” ASU 2016-1, “No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2015-05, “Intangibles – Goodwill and Other—Internal-Use Software (Subtopic 350-40) – Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” Other accounting standards that have been issued or proposed by the FASB or other standards- bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows. Reclassifications Certain items in prior financial statements have been reclassified to conform to the current presentation. |
Securities
Securities | 12 Months Ended |
Dec. 31, 2015 | |
Cash and Cash Equivalents [Abstract] | |
Securities | (2) Securities: Securities, which consist of debt and equity investments, have been classified in the consolidated balance sheets according to management’s intent. The carrying amount of securities and their estimated fair values follow: December 31, 2015 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Restricted: FHLB stock $ 4,428 — — 4,428 Available for Sale: U.S. Treasury securities $ 2,001 — (1 ) 2,000 U.S. Agency securities 91,694 1,727 (488 ) 92,933 Tax free municipal bonds 42,237 2,481 (59 ) 44,659 Taxable municipal bonds 6,190 52 (65 ) 6,177 Trust preferred securities 1,617 248 — 1,865 Mortgage-backed securities: GNMA 29,990 239 (239 ) 29,990 FNMA 28,189 266 (152 ) 28,303 FHLMC 8,113 24 (51 ) 8,086 Non- Agency CMOs 3,828 — (174 ) 3,654 AGENCY CMOs 19,570 71 (131 ) 19,510 $ 233,429 5,108 (1,360 ) 237,177 December 31, 2014 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Restricted: FHLB stock $ 4,428 — — 4,428 Available for Sale: U.S. Treasury Securities 3,977 3 — 3,980 U.S. Agency Securities $ 105,631 2,128 (527 ) 107,232 Tax free municipal bonds 57,399 3,814 (166 ) 61,047 Taxable municipal bonds 11,871 235 (63 ) 12,043 Trust preferred securities 1,600 — (111 ) 1,489 Commercial bonds 2,000 7 — 2,007 Mortgage-backed securities: GNMA 27,535 670 (122 ) 28,083 FNMA 50,617 694 (536 ) 50,775 FHLMC 3,276 38 — 3,314 Non-Agency CMOs 9,895 — (252 ) 9,643 AGENCY CMOs 28,024 176 (205 ) 27,995 $ 297,848 7,762 (1,982 ) 303,628 The scheduled maturities of debt securities available for sale at December 31, 2015, were as follows: Estimated Amortized Fair Cost Value Due within one year $ — — Due in one to five years 17,939 18,304 Due in five to ten years 42,151 42,793 Due after ten years 22,702 24,088 82,792 85,185 Amortizing agency bonds 60,947 62,449 Mortgage-backed securities 89,690 89,543 Total unrestricted securities available for sale $ 233,429 237,177 The scheduled maturities of debt securities available for sale at December 31, 2014, were as follows: Estimated Amortized Fair Cost Value Due within one year $ 4,830 4,927 Due in one to five years 21,564 21,818 Due in five to ten years 41,683 42,613 Due after ten years 33,119 35,380 101,196 104,738 Amortizing agency bonds 77,305 79,080 Mortgage-backed securities 119,347 119,810 Total unrestricted securities available for sale $ 297,848 303,628 The FHLB stock is an equity interest in the Federal Home Loan Bank. FHLB stock does not have a readily determinable fair value because ownership is restricted and a market is lacking. FHLB stock is classified as a restricted investment security, carried at cost and evaluated for impairment. The estimated fair value and unrealized loss amounts of temporarily impaired investments as of December 31, 2015, are as follows: Less than 12 months 12 months or longer Total Estimated Unrealized Estimated Unrealized Estimated Unrealized Fair Value Losses Fair Value Losses Fair Value Losses Available for sale U.S. Treasury securities $ 2,000 (1 ) — — 2,000 (1 ) U.S. Agency debt securities 26,499 (203 ) 16,224 (285 ) 42,723 (488 ) Taxable municipals 2,159 (32 ) 1,887 (33 ) 4,046 (65 ) Tax free municipals — — 3,878 (59 ) 3,878 (59 ) Mortgage-backed securities: GNMA 10,840 (105 ) 11,508 (134 ) 22,348 (239 ) FNMA 11,484 (87 ) 3,036 (65 ) 14,520 (152 ) FHLMC 7,336 (51 ) — — 7,336 (51 ) Non-Agency CMOs — — 3,654 (174 ) 3,654 (174 ) AGENCY CMOs 9,781 (90 ) 1,991 (41 ) 11,772 (131 ) Total Available for Sale $ 70,099 (569 ) 42,178 (791 ) 112,277 (1,360 ) The estimated fair value and unrealized loss amounts of temporarily impaired investments as of December 31, 2014, are as follows: Less than 12 months 12 months or longer Total Estimated Unrealized Estimated Unrealized Estimated Unrealized Fair Value Losses Fair Value Losses Fair Value Losses Available for sale U.S. Agency debt securities $ 14,021 (20 ) 29,156 (507 ) 43,177 (527 ) Taxable municipals — — 4,785 (63 ) 4,785 (63 ) Tax free municipals — — 6,647 (166 ) 6,647 (166 ) Trust preferred securities — — 1,489 (111 ) 1,489 (111 ) Mortgage-backed securities: GNMA 12,568 (108 ) 2,895 (14 ) 15,463 (122 ) FNMA — — 18,927 (536 ) 18,927 (536 ) NON-AGENCY CMOs 1,923 (14 ) 7,720 (238 ) 9,643 (252 ) AGENCY CMOs 9,545 (91 ) 7,685 (114 ) 17,230 (205 ) Total Available for Sale $ 38,057 (233 ) 79,304 (1,749 ) 117,361 (1,982 ) Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluations. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. At December 31, 2015, the Company has 71 securities with unrealized losses. Management believes these unrealized losses relate to changes in interest rates and not credit quality. Management also believes the Company has the ability to hold these securities until maturity or for the foreseeable future and therefore no declines are deemed to be other than temporary. The carrying value of the Company’s investment securities may decline in the future if the financial condition of issuers deteriorates and management determines it is probable that the Company will not recover the entire amortized cost bases of the securities. As a result, there is a risk that other-than-temporary impairment charges may occur in the future. In June of 2008, the Company purchased $2.0 million par value of a private placement subordinated debenture issued by First Financial Services Corporation (“FFKY”), the holding Company for First Federal Savings Bank (“First Fed”). The debenture is a thirty year security with a coupon rate of 8.00%. FFKY is a NASDAQ listed commercial bank holding company located in Elizabethtown, Kentucky. In October of 2010, FFKY informed the owners of its subordinated trust, including the Company, that it was deferring the dividend payments for up to five years as prescribed by the trust agreement. At September 30, 2013, the Company recognized a $400,000 impairment charge due against this security. The impairment charge was recognized due to management’s financial analysis of the issuing institution and our opinion that it would be unable to make dividend payments after the five year extension expired. In January 2015, FFKY was sold to Your Community Bankshares (“YCB”). YCB assumed the debt of FFKY and paid all interest current. The Company is currently accreting the $400,000 impairment charge back into income at a rate of $4,200 per quarter. During 2015, the Company sold investment securities classified as available for sale for proceeds of $84.9 million resulting in gross gains of $1,274,000 and gross losses of $583,000. During 2014, the Company sold investment securities classified as available for sale for proceeds of $75.3 million resulting in gross gains of $788,000 and gross losses of $210,000. During 2013, the Company sold investment securities classified as available for sale for proceeds of $68.5 million resulting in gross gains of $1.7 million and gross losses of $33,000. As part of its normal course of business, the Bank holds significant balances of municipal and other deposits that require the Bank to pledge investment instruments as collateral. At December 31, 2015, the Bank pledged investments with a book value of $135.9 million and a market value of approximately $140.3 million to various municipal entities as required by law. In addition, the Bank has provided $32.5 million of letters of credit issued by the Federal Home Loan Bank of Cincinnati to collateralize municipal deposits. The collateral for these letters of credit are the Bank’s one to four family loan portfolio. |
Loans Receivable, Net
Loans Receivable, Net | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Loans Receivable, Net | (3) Loans Receivable, Net The components of loans receivable in the consolidated balance sheets as of December 31, 2015, and December 31, 2014, were as follows: December 31, 2015 December 31, 2014 Amount Percent Amount Percent Real estate loans: One-to-four family (closed end) first mortgages $ 145,999 26.0 % $ 150,551 27.6 % Second mortgages (closed end) 1,771 0.3 % 2,102 0.4 % Home equity lines of credit 33,644 6.0 % 34,238 6.3 % Multi-family 24,725 4.4 % 25,991 4.8 % Construction 34,878 6.2 % 24,241 4.4 % Land 22,453 4.0 % 26,654 4.9 % Farmland 42,246 7.5 % 42,874 7.8 % Non-residential real estate 149,711 26.6 % 150,596 27.6 % Total mortgage loans 455,427 81.0 % 457,247 83.8 % Consumer loans 20,324 3.6 % 14,438 2.6 % Commercial loans 86,743 15.4 % 74,154 13.6 % Total other loans 107,067 19.0 % 88,592 16.2 % Total loans, gross 562,494 100.0 % 545,839 100.0 % Deferred loan cost, net of fees (445 ) (286 ) Less allowance for loan losses (5,700 ) (6,289 ) Total loans $ 556,349 $ 539,264 Loans serviced for the benefit of others totaled approximately $36.9 million, $30.4 million and $32.6 million at December 31, 2015, 2014 and 2013, respectively. At December 31, 2015, approximately $22.8 million of the $36.9 million in loans serviced by the Company are serviced for the benefit of Freddie Mac. Servicing loans for others generally consists of collecting mortgage payments, maintaining escrow amounts, disbursing payments to investors and foreclosure processing. The servicing rights associated with these loans are not material to the Company’s consolidated financial statements. Qualified one-to-four family first mortgage loans, non-residential real estate loans, multi-family loans and commercial real estate loans are pledged to the Federal Home Loan Bank of Cincinnati as discussed in Note 7. The Company originates most fixed rate loans for immediate sale to FHLMC or other investors. Generally, the sale of such loans is arranged shortly after the loan application is tentatively approved through commitments. The Company conducts annual reviews on all loan relationships above $1.0 million to ascertain the borrowers continued ability to service their debt as agreed. In addition to the credit relationships mentioned above, management may classify any credit relationship once it becomes aware of adverse credit trends for that customer. Typically, the annual review consists of updated financial statements for borrowers and any guarantors, a review of the borrower’s credit history with the Company and other creditors, and current income tax information. As a result of this review, management will classify loans based on their credit risk. The Company uses the following risk definitions for commercial loan risk grades: Excellent - Very Good - Satisfactory - Acceptable - Watch - Special Mention - Substandard - Doubtful - Loss The following credit risk standards are assigned to consumer loans. Satisfactory - Substandard Assets - Loss Assets - A loan is considered to be impaired when management determines that 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. The value of individually impaired loans is measured based on the present value of expected payments or using the fair value of the collateral if the loan is collateral dependent. Currently, it is management’s practice to classify all substandard or doubtful loans as impaired. Loan Origination/Risk Management The Company has certain lending policies and procedures in place that are designed to maximize loan income within an acceptable level of risk. Management reviews and approves these policies and procedures on a regular basis. A reporting system supplements the review process by providing management with frequent reports related to loan production, loan quality, concentrations of credit, loan delinquencies and non-performing and potential problem loans. Diversification in the loan portfolio is a means of managing risk associated with fluctuations in economic conditions. Commercial and industrial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably and prudently expand its business. Underwriting standards are designed to promote relationship banking rather than transactional banking. Once it is determined that the borrower’s management possesses sound ethics and solid business acumen, the Company’s management examines current and projected cash flows to determine the ability of the borrower to repay their obligations as agreed. Commercial and industrial loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial and industrial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee; however, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Commercial real estate loans are subject to underwriting standards and processes similar to commercial and industrial loans, in addition to those of real estate loans. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally largely dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s commercial real estate portfolio are diverse in terms of type and geographic location. This diversity helps reduce the Company’s exposure to adverse economic events that affect any single market or industry. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. As a general rule, the Company avoids financing single-purpose projects unless other underwriting factors are present to help mitigate risk. The Company also utilizes third-party experts to provide insight and guidance about economic conditions and trends affecting market areas it serves. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner occupied loans . With respect to loans to developers and builders that are secured by non-owner occupied properties that the Company may originate from time to time, the Company generally requires the borrower to have had an existing relationship with the Company and have a proven record of success. Construction loans are underwritten utilizing feasibility studies, independent appraisal reviews, sensitivity analysis of absorption and lease rates and financial analysis of the developers and property owners. Construction loans are generally based upon estimates of costs and value associated with the completed project. These estimates may be inaccurate. Construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions and the availability of long-term financing. The Company maintains an independent loan review function that is typically outsourced to firms that specialize in conducting loan reviews. Results of these reviews are presented to management. The loan review process complements and reinforces the risk identification and assessment decisions made by lenders and credit personnel, as well as the Company policies and procedures. Most of the Company’s lending activity occurs in Western Kentucky and middle and western Tennessee. The majority of the Company’s loan portfolio consists of non-residential real estate loans and one-to-four family residential real estate loans. Loans by classification type and the related valuation allowance amounts at December 31, 2015, were as follows: Special Impaired Loans Specific Allowance for Pass Mention Substandard Doubtful Total Impairment Impaired One-to-four family mortgages $ 142,729 41 3,229 — 145,999 60 970 Home equity line of credit 33,475 — 169 — 33,644 — 201 Junior lien 1,720 35 16 — 1,771 — 8 Multi-family 21,644 — 3,081 — 24,725 138 89 Construction 34,878 — — — 34,878 — 377 Land 11,794 41 10,618 — 22,453 69 1,310 Non-residential real estate 138,865 2,489 8,357 — 149,711 134 1,005 Farmland 41,917 — 329 — 42,246 — 358 Consumer loans 20,123 — 201 — 20,324 49 309 Commercial loans 84,317 352 2,074 — 86,743 180 443 Total $ 531,462 2,958 28,074 — 562,494 630 5,070 Loans by classification type and the related valuation allowance amounts at December 31, 2014, were as follows: Special Impaired Loans Specific Allowance for Pass Mention Substandard Doubtful Total Impairment Impaired One-to-four family mortgages $ 146,129 203 4,219 — 150,551 51 1,147 Home equity line of credit 33,481 — 757 — 34,238 — 181 Junior lien 2,025 40 37 — 2,102 — 14 Multi-family 20,066 2,904 3,021 — 25,991 — 85 Construction 24,241 — — — 24,241 — 146 Land 15,328 362 10,964 — 26,654 663 460 Non-residential real estate 131,854 5,492 13,250 — 150,596 738 1,345 Farmland 40,121 516 2,237 — 42,874 — 461 Consumer loans 14,118 21 299 — 14,438 62 432 Commercial loans 71,246 325 2,583 — 74,154 — 504 Total $ 498,609 9,863 37,367 — 545,839 1,514 4,775 Impaired loans by classification type and the related valuation allowance amounts at December 31, 2015, were as follows: At December 31, 2015 For the year ended Recorded Unpaid Related Average Interest Impaired loans with no specific allowance One-to-four family mortgages $ 2,526 2,526 — 2,389 80 Home equity line of credit 169 169 — 457 7 Junior liens 16 16 — 17 1 Multi-family 2,128 2,128 — 2,797 126 Construction — — — — — Land 10,038 10,998 — 8,520 671 Non-residential real estate 7,640 7,640 — 283 404 Farmland 329 329 — 7,774 19 Consumer loans 5 5 — 3 — Commercial loans 1,274 1,274 — 1,599 73 Total 24,125 25,085 — 23,839 1,381 Impaired loans with a specific allowance One-to-four family mortgages $ 703 703 60 709 40 Home equity line of credit — — — — — Junior liens — — — — — Multi-family 953 953 138 318 17 Construction — — — — — Land 580 580 69 1,707 46 Non-residential real estate 717 717 134 836 28 Farmland — — — — — Consumer loans 196 196 49 194 — Commercial loans 800 800 180 514 15 Total 3,949 3,949 630 4,278 146 Total impaired loans $ 28,074 29,034 630 28,117 1,527 Impaired loans by classification type and the related valuation allowance amounts at December 31, 2014, were as follows: At December 31, 2014 For the year ended Recorded Unpaid Related Average Interest Impaired loans with no specific allowance One-to-four family mortgages $ 3,501 3,501 — 2,972 176 Home equity line of credit 757 757 — 690 35 Junior liens 37 37 — 39 2 Multi-family 3,021 3,021 — 1,342 190 Construction — — — 29 — Land 7,740 7,740 — 8,978 339 Non-residential real estate 12,057 12,057 — 8,672 669 Farmland 2,237 2,237 — 3,968 125 Consumer loans 51 51 — 36 3 Commercial loans 2,583 2,583 — 2,246 154 Total 31,984 31,984 — 28,972 1,693 Impaired loans with a specific allowance One-to-four family mortgages $ 718 718 51 1,434 44 Home equity line of credit — — — — — Junior liens — — — — — Multi-family — — — — — Construction — — — — — Land 3,224 4,737 663 3,418 160 Non-residential real estate 1,193 1,258 738 3,617 69 Farmland — — — 619 — Consumer loans 248 248 62 355 — Commercial loans — — — 100 — Total 5,383 6,961 1,514 9,543 273 Total impaired loans $ 37,367 38,945 1,514 38,515 1,966 The following table presents the balance in the allowance for loan losses and the recorded investment in loans as of December 31, 2015, and December 31, 2014, by portfolio segment and based on the impairment method as of December 31, 2015, and December 31, 2014. Commercial Land Commercial Residential Consumer Total December 31, 2015: Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 180 69 272 60 49 630 Collectively evaluated for impairment 443 1,687 1,452 1,179 309 5,070 Total ending allowance balance $ 623 1,756 1,724 1,239 358 5,700 Loans: Loans individually evaluated for impairment $ 2,074 10,618 11,767 3,414 201 28,074 Loans collectively evaluated for impairment 84,669 46,713 204,915 178,000 20,123 534,420 Total ending loans balance $ 86,743 57,331 216,682 181,414 20,324 562,494 Commercial Land Commercial Residential Consumer Total December 31, 2014: Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — 663 738 51 62 1,514 Collectively evaluated for impairment 504 606 1,891 1,342 432 4,775 Total ending allowance balance $ 504 1,269 2,629 1,393 494 6,289 Loans: Loans individually evaluated for impairment $ 2,583 10,964 18,508 5,013 299 37,367 Loans collectively evaluated for impairment 71,571 39,931 200,953 181,878 14,139 508,472 Total ending loans balance $ 74,154 50,895 219,461 186,891 14,438 545,839 The average recorded investment in impaired loans for the years ended December 31, 2015, 2014 and 2013 was $28.1 million, $38.5 million and $43.1 million, respectively. Interest income recognized on impaired loans for the years ended December 31, 2015 and December 31, 2014 and December 31, 2013, was $1.5 million, $2.0 million and $859,000, respectively. The following table provides a detail of the Company’s activity in the allowance for loan loss account allocated by loan type for the year ended December 31, 2015: Balance Charge Recovery General Specific Ending One-to-four family mortgages $ 1,198 (143 ) 39 (176 ) 112 1,030 Home equity line of credit 181 (92 ) 10 20 82 201 Junior liens 14 — 4 (6 ) (4 ) 8 Multi-family 85 — — 4 138 227 Construction 146 — — 231 — 377 Land 1,123 (911 ) — 850 317 1,379 Non-residential real estate 2,083 (222 ) 2 (944 ) 220 1,139 Farmland 461 — — 500 (603 ) 358 Consumer loans 494 (298 ) 118 (123 ) 167 358 Commercial loans 504 (201 ) 54 (61 ) 327 623 $ 6,289 (1,867 ) 227 295 756 5,700 The following table provides a detail of the Company’s activity in the allowance for loan loss account allocated by loan type for the year ended December 30, 2014: Balance Charge Recovery General Specific Ending One-to-four family mortgages $ 2,048 (233 ) 24 (304 ) (337 ) 1,198 Home equity line of credit 218 (83 ) 3 (37 ) 80 181 Junior liens 39 — 9 (25 ) (9 ) 14 Multi-family 466 — — (381 ) — 85 Construction 88 (139 ) 9 58 130 146 Land 1,305 — — (74 ) (108 ) 1,123 Non-residential real estate 2,719 (66 ) 864 (1,368 ) (66 ) 2,083 Farmland 510 — — 542 (591 ) 461 Consumer loans 541 (415 ) 109 (13 ) 272 494 Commercial loans 748 (296 ) 94 (244 ) 202 504 $ 8,682 (1,232 ) 1,112 (1,846 ) (427 ) 6,289 Non-accrual loans totaled $7.4 million and $3.2 million at December 31, 2015, and December 31, 2014, respectively. All non-accrual 12/31/2015 12/31/2014 One-to-four family first mortgages $ 2,234 1,501 Home equity lines of credit 48 — Junior liens — — Multi-family 1,968 95 Land 1,553 215 Non-residential real estate 247 1,159 Farmland 166 115 Consumer loans 8 — Commercial loans 1,198 90 Total non-accrual loans $ 7,422 3,175 The table below presents loan balances at December 31, 2015, by loan classification allocated between past due, classified, performing and non-performing: Currently 30 - 89 Non-accrual Special Impaired Loans Currently Performing Substandard Doubtful Total One-to-four family mortgages $ 142,058 671 2,234 41 995 — $ 145,999 Home equity line of credit 33,396 79 48 — 121 — 33,644 Junior liens 1,720 — — 35 16 — 1,771 Multi-family 21,638 6 1,968 — 1,113 — 24,725 Construction 34,878 — — — — — 34,878 Land 11,047 747 1,553 41 9,065 — 22,453 Non-residential real estate 138,637 228 247 2,489 8,110 — 149,711 Farmland 41,853 64 166 — 163 — 42,246 Consumer loans 20,108 15 8 — 193 — 20,324 Commercial loans 84,272 45 1,198 352 876 — 86,743 Total $ 529,607 1,855 7,422 2,958 20,652 — 562,494 The table below presents loan balances at December 31, 2014, by loan classification allocated between performing and non-performing: Currently 30—89 Non-accrual Special Impaired Loans Currently Performing Substandard Doubtful Total One-to-four family mortgages $ 145,372 757 1,501 203 2,718 — 150,551 Home equity line of credit 33,338 143 — — 757 — 34,238 Junior liens 2,025 — — 40 37 — 2,102 Multi-family 20,066 — 95 2,904 2,926 — 25,991 Construction 24,241 — — — — — 24,241 Land 14,674 654 215 362 10,749 — 26,654 Non-residential real estate 131,854 — 1,159 5,492 12,091 — 150,596 Farmland 40,057 64 115 516 2,122 — 42,874 Consumer loans 14,104 14 — 21 299 — 14,438 Commercial loans 71,191 55 90 325 2,493 — 74,154 Total $ 496,922 1,687 3,175 9,863 34,192 — 545,839 All loans listed as 30-89 days past due and non-accrual are not performing as agreed. Loans listed as special mention, substandard and doubtful are paying as agreed. However, the customer’s financial statements may indicate weaknesses in their current cash flow, the customer’s industry may be in decline due to current economic conditions, collateral values used to secure the loan may be declining, or the Company may be concerned about the customer’s future business prospects. Troubled Debt Restructuring On a periodic basis, the Company may modify the terms of certain loans. In evaluating whether a restructuring constitutes a troubled debt restructuring (TDR), Financial Accounting Standards Board has issued Accounting Standards Update 310 (ASU 310); A Creditor’s Determination of Whether a Restructuring is a Troubled Debt Restructuring. a.) The restructuring constitutes a concession b.) The debtor is experiencing financial difficulties ASU 310 provides the following guidance for the Company’s evaluation of whether it has granted a concession as follows: If a debtor does not otherwise have access to funds at a market interest rate for debt with similar risk characteristics as the restructured debt, the restructured debt would be considered a below market rate, which may indicate that the Company may have granted a concession. In that circumstance, the Company should consider all aspects of the restructuring in determining whether it has granted a concession, the creditor must make a separate assessment about whether the debtor is experiencing financial difficulties to determine whether the restructuring constitutes a TDR. A temporary or permanent increase in the interest rate on a loan as a result of a restructuring does not eliminate the possibility of the restructuring from being considered a concession if the new interest rate on the loan is below the market interest rate for loans of similar risk characteristics. A restructuring that results in a delay in payment that is insignificant is not a concession. However, the Company must consider a variety of factors in assessing whether a restructuring resulting in a delay in payment is insignificant. At December 31, 2015, the Company had two loan relationships with a total of eight loans classified as performing TDR. The largest loan relationship classified as a TDR is collateralized by non-owner occupied commercial real estate and was placed on interest only payments in 2014. At July 31, 2015, both loans were removed from interest only and are now paying monthly principal and interest payments in accordance with the Company’s loan policy. At December 31, 2015, the loan relationship has a balance of approximately $3.3 million. The second TDR relationship includes six loans and is secured by a non-owner occupied commercial real estate loan. This loan relationship was placed on interest only payments in the third quarter of 2015. The owner has significant equity in the collateral and is attempting the sell the asset to use the equity for unanticipated financial obligations. The aggregate loan balance of this relationship is $2.2 million. A summary of the activity in loans classified as TDRs for the twelve month period ended December 31, 2015, is as follows: Balance at New Loss or Transferred to Loan Balance 12/31/14 TDR Foreclosure Non-accrual Amortization 12/31/15 Non-residential real estate $ 3,284 2,265 — — (13 ) $ 5,536 Total performing TDR $ 3,284 2,265 — — (13 ) $ 5,536 A summary of the activity in loans classified as TDRs for the year ended December 31, 2014, is as follows: Balance at New Loss or Transferred to Removed from (Taken to) Balance 12/31/13 TDR Foreclosure Held For Sale Non-accrual 12/31/14 Non-residential real estate $ — 10,271 — (6,987 ) — 3,284 Total performing TDR $ — 10,271 — (6,987 ) — $ 3,284 The Company originates loans to officers and directors and their affiliates at terms substantially identical to those available to other borrowers. Loans to officers and directors at December 31, 2015 and December 31, 2014, were approximately $3.8 million and $4.0 million, respectively. At December 31, 2015, funds committed that were undisbursed to officers and directors approximated $493,000. The following summarizes activity of loans to officers and directors and their affiliates for the years ended December 31, 2015, and December 31, 2014: 2015 2014 Balance at beginning of period 4,022 4,800 New loans 682 669 Principal repayments (860 ) (1,447 ) Balance at end of period 3,844 4,022 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | (4) Premises and Equipment Components of premises and equipment included in the consolidated balance sheets as of December 31, 2015 and December 31, 2014, consisted of the following: 2015 2014 Land $ 6,579 $ 6,576 Land improvements 1,097 611 Buildings 22,405 20,914 Construction in process — 486 Furniture and equipment 6,488 6,213 36,569 34,800 Less accumulated depreciation 12,535 11,860 Premises and equipment, net $ 24,034 $ 22,940 Depreciation expense was approximately $1,266,000, $1,336 , |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | (5) Intangible Assets The amount of other intangible assets and the changes in the carrying amounts of other intangible assets for the years ended December 31, 2015, 2014 and 2013: Core Deposits Intangible Balance, December 31, 2012 $ 292 Amortization (162 ) Balance December 31, 2013 130 Amortization (97 ) Balance December 31, 2014 33 Amortization (33 ) Balance, December 31, 2015 $ — |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Deposits | (6) Deposits At December 31, 2015, the scheduled maturities of other time deposits were as follows: Years Ending December 31, 2016 $ 201,329 2017 60,281 2018 36,975 2019 6,441 2020 9,638 $ 314,664 The amount of other time deposits with a minimum denomination of $250,000 was approximately $78.8 million at December 31, 2015, and December 31, 2014, respectively. At December 31, 2015, directors, members of senior management and their affiliates had deposits in the Bank of approximately $6.2 million. Interest expense on deposits for the years ended December 31, 2015, December 31, 2014 and December 31, 2013 is summarized as follows: 2015 2014 2013 Interest bearing checking accounts $ 1,105 $ 1,253 $ 1,243 Money market accounts 88 86 73 Savings 103 109 79 Other time deposits 3,735 4,155 5,719 $ 5,031 $ 5,603 $ 7,114 The Bank maintains clearing arrangements for its demand, interest bearing checking accounts and money market accounts with BBVA Compass Bank. The Bank is required to maintain certain cash reserves in its account to cover average daily clearings. At December 31, 2015, average daily clearings were approximately $5.9 million. At December 31, 2015, the Company had approximately $196,000 of deposit accounts in overdraft status and thus has been reclassified to loans on the accompanying consolidated balance sheet. At December 31, 2014, the Company had approximately $248,000 of deposit accounts in overdraft status and thus has been reclassified to loans on the accompanying consolidated balance sheet. At December 31, 2015, and December 31, 2014, the Company had deposits classified as brokered deposits totaling $34.4 million and $37.1 million, respectively. |
Advances from Federal Home Loan
Advances from Federal Home Loan Bank | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |
Advances from Federal Home Loan Bank | (7) Advances from Federal Home Loan Bank Federal Home Loan Bank advances are summarized as follows: December 31, 2015 2014 Weighted Weighted Types of Advances Amount Average Rate Amount Average Rate Fixed-rate $ 15,000 2.19 % $ 34,000 0.88 % Scheduled maturities of FHLB advances as of December 31, 2015 are as follows: Years Ending Fixed Average December 31, Rate Cost 2016 $ 4,000 5.34 % 2017 5,000 0.88 % 2018 6,000 1.18 % Total $ 15,000 2.19 % The Bank has an approved line of credit of $30 million at the FHLB of Cincinnati, which is secured by a blanket agreement to maintain residential first mortgage loans and non-residential real estate loans with a principal value of 125% of the outstanding advances and has a variable interest rate. At December 31, 2015, the Bank could borrow an additional $54.0 million from the FHLB of Cincinnati without pledging additional collateral. At December 31, 2015, the Bank has an additional $17.2 million in additional collateral that could be pledged to the FHLB to secure additional advance requirements. The Bank has an $8 million unsecured line of credit with BVA Compass Bank of Birmingham, Alabama. The Company’s overnight lines of credit with both the Federal Home Loan Bank of Cincinnati and Compass Bank had no balance at December 31, 2015. |
Repurchase Agreements
Repurchase Agreements | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Repurchase Agreements | (8) Repurchase Agreements: In 2006, the Company enhanced its cash management product line to include an automated sweep of excess funds from checking accounts to repurchase accounts, allowing interest to be paid on excess funds remaining in checking accounts of business and municipal customers. Repurchase balances are overnight borrowings from customers and are not FDIC insured. In addition, the Company has entered into two long term repurchase agreements with third parties. At December 31, 2015, the Company provided investment securities with a market value and book value of $45.8 million as collateral for repurchase agreements. The maximum repurchase balances outstanding during the twelve month periods ending December 31, 2015, and December 31, 2014, was $57.4 million and $57.9 million, respectively. At December 31, 2015, and December 31, 2014, the respective cost and maturities of the Company’s repurchase agreements are as follows: 2015 Third Party Balance Average Rate Maturity Comments Merrill Lynch $ 6,000 4.36 % 9/18/2016 Quarterly callable Various customers 39,770 0.61 % Overnight Total $ 45,770 1.13 % 2014 Third Party Balance Average Rate Maturity Comments Merrill Lynch $ 6,000 4.36 % 9/18/2016 Quarterly callable Various customers 51,358 0.60 % Overnight Total $ 57,358 1.42 % |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | (9) Fair Value Measurement In September 2006, FASB issued ASC Topic 820, Fair Value Measurements and Disclosures. HopFed Bancorp has developed a process for determining fair values. Fair value is based upon quoted market prices, where available. If listed prices or quotes are not available, fair value is based upon internally developed models or processes that use primarily market based or based on third party market data, including interest rate yield curves, option volatilities and other third party information. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies, or assumptions, to determine the fair value of certain financials instruments could result in a different estimate of fair value at the reporting date. ASC 820 establishes a three-level valuation hierarchy for disclosure of fair value measurement. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. • Level 1 is for assets and liabilities that management has obtained quoted prices (unadjusted for transaction cost) or identical assets or liabilities in active markets that the Company has the ability to access as of the measurement date. • Level 2 is for assets and liabilities in which significant unobservable inputs other than Level 1 prices such as quoted prices for similar assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3 is for assets and liabilities in which significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The fair value of securities available for sale are determined by a matrix pricing, which is a mathematical technique what is widely used in the industry to value debt securities without relying exclusively on quoted prices for the individual securities in the Company’s portfolio but relying on the securities relationship to other benchmark quoted securities. Impaired loans are valued at the net present value of expected payments and considering the fair value of any assigned collateral. The Company has certain liabilities carried at fair value including interest rate swap agreements. The fair value of these liabilities is based on information obtained from a third party bank and is reflected within level 2 of the valuation hierarchy. Assets and Liabilities Measured on a Recurring Basis The assets and liabilities measured at fair value on a recurring basis are summarized below: December 31, 2015 Total carrying Quoted Prices Significant Significant Description balance sheet at Identical Assets Inputs Inputs Assets Available for sale securities $ 237,177 2,000 233,312 1,865 December 31, 2014 Total carrying Quoted Prices Significant Significant Description balance sheet at Identical Assets Inputs Inputs Assets Available for sale securities $ 303,628 3,980 298,159 1,489 Liabilities Interest rate swap $ 390 — 390 — The assets and liabilities measured at fair value on a non-recurring basis are summarized below: December 31, 2015 Total carrying Quoted Prices Significant Significant Description consolidated Markets for Observable Unobservable Assets Other real estate owned $ 1,736 — — 1,736 Impaired loans, net of allowance of $630 $ 3,319 — — 3,319 December 31, 2014 Total carrying Quoted Prices Significant Significant Description consolidated Markets for Observable Unobservable Assets Other real estate owned $ 1,927 — — 1,927 Impaired loans, net of allowance of $1,514 $ 3,869 — — 3,869 Change in level 3 fair value measurements: The table below includes a roll-forward of the balance sheet items for the years ended December 31, 2015 and 2014, (including the change in fair value) for assets and liabilities classified by HopFed Bancorp, Inc. within level 3 of the valuation hierarchy for assets and liabilities measured at fair value on a recurring basis. When a determination is made to classify a financial instrument within level 3 of the valuation hierarchy, the determination is based upon the significance of the unobservable factors to the overall fair value measurement. However, since level 3 financial instruments typically include, in addition to the unobservable or level 3 components, observable components (that is components that are actively quoted and can be validated to external sources), the gains and losses in the table below include changes in fair value due in part to observable factors that are part of the valuation methodology. Year ended December 31, 2015 2014 Other Other Other Other Assets Liabilities Assets Liabilities Fair value, December 31, $ 1,489 — $ 1,489 — Change in unrealized gains (losses) included in other comprehensive income for assets and liabilities still held at December 31, 359 — — — Other than temporary impairment charge — — — — Recovery of prior impairment charge 17 — — — Purchases, issuances and settlements, net — — — — Transfers in and/or out of Level 3 — — — — Fair value, December 31, $ 1,865 — $ 1,489 — The estimated fair values of financial instruments were as follows at December 31, 2015: Using Quoted Prices Significant In Active Markets Other Significant Estimated for Identical Observable Unobservable Carrying Fair Assets Inputs Inputs Amount Value Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 46,926 46,926 46,926 — — Interest-earning deposits 7,772 7,772 7,772 — — Securities available for sale 237,177 237,177 2,000 233,312 1,865 Federal Home Loan Bank stock 4,428 4,428 — 4,428 — Loans held for sale 2,792 2,792 — 2,792 — Loans receivable 556,349 552,981 — — 552,981 Accrued interest receivable 4,139 4,139 — 4,139 — Financial liabilities: Deposits 739,406 724,877 — 724,877 — Advances from borrowers for taxes and insurance 614 614 — 614 — Advances from Federal Home Loan Bank 15,000 14,985 — 14,985 — Repurchase agreements 45,770 45,931 — 45,931 — Subordinated debentures 10,310 10,099 — — 10,099 Off-balance-sheet liabilities: Commitments to extend credit — — — — — Commercial letters of credit — — — — — The estimated fair values of financial instruments were as follows at December 31, 2014: Using Quoted Prices Significant In Active Markets Other Significant Estimated for Identical Observable Unobservable Carrying Fair Assets Inputs Inputs Amount Value Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 34,389 34,389 34,389 — — Interest-earning deposits 6,050 6,050 6,050 — — Securities available for sale 303,628 303,628 3,980 298,159 1,489 Federal Home Loan Bank stock 4,428 4,428 — 4,428 — Loans held for sale 1,444 1,444 — 1,444 — Loans receivable 539,264 537,493 — — 537,493 Accounts receivable 4,576 4,576 — 4,576 — Financial liabilities: Deposits 731,308 714,750 — 714,750 — Advances from borrowers for taxes and insurance 513 513 — 513 — Advances from Federal Home Loan Bank 34,000 34,217 — 34,217 — Repurchase agreements 57,358 57,688 — 57,688 — Subordinated debentures 10,310 10,099 — — 10,099 Off-balance-sheet liabilities: Commitments to extend credit — — — — — Commercial letters of credit — — — — — Market value of interest rate swap 390 390 — 390 — Non-Financial Assets and Non-Financial Liabilities: The Company has no non-financial assets or non-financial liabilities measured at fair value on a recurring basis. Certain non-financial assets measured at fair value on a non-recurring basis include foreclosed assets (upon initial recognition or subsequent impairment), non-financial assets and intangible assets and other non-financial long-lived assets measured at fair value for impairment assessment. Non-financial assets measured at fair value on a non-recurring basis during the reported periods include certain foreclosed assets which, upon initial recognition, were re-measured and reported at fair value through a charge-off to the allowance for loan losses and certain foreclosed assets which, subsequent to their initial recognition, were re-measured at fair value through a write-down included in other non-interest expense. The fair value of a foreclosed asset is estimated using Level 2 inputs based on observable market data or Level 3 inputs based on customized discounting criteria. The following table presents foreclosed assets that were re-measured and reported at fair value: Years Ended December 31, 2015 2014 2013 Beginning balance $ 1,927 1,674 1,548 Foreclosed assets measured at initial recognition: Carrying value of foreclosed assets prior to acquisition 986 1,816 1,535 Proceeds from sale of foreclosed assets (344 ) (1,118 ) (908 ) Charge-offs recognized in the allowance for loan loss (117 ) (237 ) (361 ) Losses included in non-interest expense (716 ) (208 ) (140 ) Fair value $ 1,736 1,927 1,674 |
Subordinated Debentures
Subordinated Debentures | 12 Months Ended |
Dec. 31, 2015 | |
Brokers and Dealers [Abstract] | |
Subordinated Debentures | (10) Subordinated Debentures On September 25, 2003, the Company formed HopFed Capital Trust I (the Trust). The Trust is a statutory trust formed under the laws of the state of Delaware. In September 2003, the Trust issued variable rate capital securities with an aggregate liquidation amount of $10,000,000 ($1,000 per preferred security) to a third-party investor. The Company then issued floating rate junior subordinated debentures aggregating $10,310,000 to the Trust. The junior subordinated debentures are the sole assets of the Trust. The junior subordinated debentures and the capital securities pay interest and dividends, respectively, on a quarterly basis. The variable interest rate is the three-month LIBOR plus 3.10% adjusted quarterly. The most recent interest rate adjustment for the trust was effective January 8, 2016, which adjusted the total coupon rate to 3.72%. These junior subordinated debentures mature in 2033, at which time the capital securities must be redeemed. The junior subordinated debentures and capital securities became redeemable contemporaneously, in whole or in part, beginning October 8, 2008 at a redemption price of $1,000 per capital security. The Company has provided a full-irrevocable and unconditional guarantee on a subordinated basis of the obligations of the Trust under the capital securities in the event of the occurrence of an event of default, as defined in such guarantee. |
Concentrations of Credit Risk
Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Credit Risk | (11) Concentrations of Credit Risk Most of the Bank’s business activity is with customers located within the western part of the Commonwealth of Kentucky and middle and western Tennessee. One-to-four family residential and non residential real estate collateralize the majority of the loans. The Bank requires collateral for the majority of loans. The distribution of commitments to extend credit approximates the distribution of loans outstanding. The contractual amounts of credit-related financial instruments such as commitments to extend credit and commercial letters of credit represent the amounts of potential accounting loss should the contract be fully drawn upon, the customer default, and the value of any existing collateral become worthless. At December 31, 2015, all cash and cash equivalents are deposited with Compass BBVA Bank, the Federal Reserve Bank or the Federal Home Loan Bank of Cincinnati (FHLB). Deposits at Compass BBVA Bank are insured to $250,000. All deposits at the FHLB are liabilities of the individual bank and were not federally insured. The FHLB is a government sponsored enterprise (GSE) and has the second highest rating available by all rating agencies. At December 31, 2015, total FHLB deposits were approximately $12.5 million and total deposits at the Federal Reserve were $8.1 million, none of which is insured by the FDIC. At December 31, 2015, total deposits at BBVA were $26.8 million, of which $250,000 were insured by the FDIC. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | (12) Employee Benefit Plans Stock Option Plan On February 24, 1999, the Board of Directors of the Company adopted the HopFed Bancorp, Inc. 1999 Stock Option Plan (Option Plan), which was subsequently approved at the 1999 Annual Meeting of Stockholders. Under the Option Plan, the Option Committee has discretionary authority to grant stock options and stock appreciation rights to such employees, directors and advisory directors, as the committee shall designate. The Option Plan reserved 403,360 shares of common stock for issuance upon the exercise of options or stock appreciation rights. At December 31, 2012, the Company can no longer issue options under this plan. The remaining 20,808 options are fully vested and outstanding until their maturity date. On May 31, 2000, the Board of Directors of the Company adopted the HopFed Bancorp, Inc. 2000 Stock Option Plan (the “2000 Option Plan”). Under the 2000 Option Plan, the option committee has discretionary authority to grant stock options to such employees as the committee shall designate. The 2000 Option Plan reserves 40,000 shares of common stock for issuance upon the exercise of options. The Company will receive the exercise price for shares of common stock issued to 2000 Option Plan participants upon the exercise of their option. The Board of Directors has granted options to purchase 40,000 shares of common stock under the 2000 Option Plan at an exercise price of $10.00 per share, which was the fair market value on the date of the grant. At December 31, 2015, all options having been granted under the 2000 Option Plan have been exercised and expired. Number of Weighted Options outstanding, December 2012 20,808 $ 16.67 Granted — — Exercised — — Forfeited — — Options outstanding, December 2013 20,808 $ 16.67 Granted — — Exercised — — Forfeited (20,808 ) $ 16.67 Options outstanding, December 2014 — — At December 31, 2015, there are no stock options outstanding. HopFed Bancorp Long Term Incentive Plans On February 18, 2004, the Board of Directors of the Company adopted the HopFed Bancorp, Inc. 2004 Long Term Incentive Plan (the Plan), which was subsequently approved at the 2004 Annual Meeting of Stockholders. Under the Plan, the Compensation Committee has discretionary authority to grant up to 200,000 shares in the form of restricted stock grants, options, and stock appreciation rights to such employees, directors and advisory directors as the committee shall designate. The grants vest in equal installments over a four-year period. Grants may vest immediately upon specific events, including a change of control of the Company, death or disability of award recipient, and termination of employment of the recipient by the Company without cause. On March 20, 2013, the Board of Directors of the Company adopted the HopFed Bancorp, Inc. 2013 Long Term Incentive Plan (the Plan), which was subsequently approved at the 2013 Annual Meeting of Stockholders. Under the Plan, the Compensation Committee has discretionary authority to grant up to 300,000 shares in the form of restricted stock grants and options to such employees, directors and advisory directors as the committee shall designate. The grants vest in equal installments over a three or four year period. Grants may vest immediately upon specific events, including a change of control of the Company, death or disability of award recipient, and termination of employment of the recipient by the Company without cause. The 2004 Plan has now expired and no other shares may be issued under the 2004 Plan. Awards are recognized as an expense to the Company in accordance with the vesting schedule. Awards in which the vesting is accelerated must be recognized as an expense immediately. Awards are valued at the closing stock price on the day the award is granted. For the year ended December 31, 2015, the Compensation Committee granted 2,034 shares of restricted stock with a market value of $25,000. For the year ended December 31, 2014, the Compensation Committee granted 22,378 shares of restricted stock with a market value of $260,000. For the year ended December 31, 2013, the Compensation Committee granted 21,559 shares of restricted stock with a market value of $232,000. The Company recognized $190,000, $164,000, and $115,000 in compensation expense in 2015, 2014 and 2013, respectively. The remaining compensation expense to be recognized at December 31, 2015, is as follows: Year Ending December 31, Approximate Future 2016 $ 139 2017 52 2018 9 2019 3 Total $ 203 HopFed Bancorp Long Term Incentive Plans The Compensation Committee may make additional awards of restricted stock, thereby increasing the future expense related to this plan. The early vesting of restricted stock awards due to factors outlined in the award agreement may accelerate future compensation expenses related to the plan. However, the total amount of future compensation expense would not change as a result of an accelerated vesting of shares. At December 31, 2015, the Company has 254,256 restricted shares available from the HopFed Bancorp, Inc. 2013 Long Term Incentive Plan that may be awarded. 401(K) Plan The Company has a 401(K) retirement program that is available to all employees who meet minimum eligibility requirements. Participants may generally contribute up to 15% of earnings. Prior to January 1, 2015, the Company matched employee contributions up to 4%. In addition, the Company chose to provide all eligible employees an additional 4% of compensation without regards to the amount of the employee contribution. Expense related to Company contributions amounted to $769,000 and $737,000 in 2014 and 2013, respectively. The reduction in expense related to the 401K program in 2014 and 2013 was the offset of approximately $43,000 and $22,000, respectively, in Company contributions forfeited by employees who are no longer employed by the Company and have not met the full vesting requirements of the plan. In 2015, the Company discontinued all 401(K) contributions on behalf of employees while allowing employees to continue to make contributions to the plan. The Company established a new retirement plan for all employees discussed below. HopFed Bancorp, Inc. 2015 Employee Stock Ownership Plan On March 2, 2015, the Company implemented the HopFed Bancorp, Inc. 2015 Employee Stock Ownership Plan (the “ESOP”) which covers substantially all employees who are at least 21 years old with at least one year of employment with the Company and Heritage Bank USA, Inc. (the “Bank”), the Company’s commercial bank subsidiary. The ESOP has three individuals who have been selected by the Company to serve as trustees. A directed corporate trustee has also been appointed. The ESOP will be administered by a committee (the “Committee”) currently composed of eleven employees selected by the Company or its designee. The 2015 ESOP received approval from the Federal Reserve Bank of St. Louis to own up to 24.9% of the Company’s stock. On March 2, 2015, the ESOP entered into a loan agreement with the Corporation to borrow up to $13,500,000 to purchase up to 1,000,000 shares common stock (“ESOP Loan”). On the same date, the ESOP purchased 600,000 shares from the Corporation at a cost of $7,884,000 using the proceeds of the ESOP Loan. In accordance with the ESOP Loan documents, the common stock purchased by the ESOP serves as collateral for the ESOP Loan. The ESOP Loan will be repaid principally from discretionary contributions by the Bank to the ESOP. The ESOP Loan was amended to provide for no future draws and a final maturity of December 9, 2026. The interest rate on the ESOP Loan is 3.0%. Shares purchased by the ESOP will be held in a suspense account for allocation among participants as the ESOP Loan is repaid. The ESOP shares are dividend paying. Dividends on unearned shares will be used to repay the ESOP Loan. For the year ended December 31, 2015, the Company recognized an expense of $652,000 related to the ESOP loan payment. At December 31, 2015, the Company released 53,587 shares from the ESOP trust to individual employees of the plan as a result of the loan payment. Deferred Compensation Plan During 2002, the Company purchased assets and assumed the liabilities relating to a nonqualified deferred compensation plan for certain employees of the Fulton division. The Company owns single premium life insurance policies on the life of each participant and is the beneficiary of the policy value. When a participant retires, the benefits accrued for each participant will be distributed to the participant in equal installments for 15 years. The plan is now fully funded and no additional expenses will be recognized. The Deferred Compensation Plan also provides the participant with life insurance coverage, which is a percentage of the net death proceeds for the policy, if any, applicable to the participant. The original face value of all deferred compensation contracts was approximately $668,000. At December 31, 2015, the accrued value of all deferred compensation contacts is approximately $265,000. The Company is currently making cash remittances of approximately $12,000 per year on deferred compensation contracts. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (13) Income Taxes: The provision for income tax expense (benefit) for the years ended December 31, 2015, December 31, 2014, and December 31, 2013, consisted of the following: 2015 2014 2013 Current Federal $ — — (32 ) State 97 30 110 97 30 78 Deferred Federal 177 (231 ) 566 State — — — 177 (231 ) 566 $ 274 (201 ) 644 Total income tax expense for the years ended December 31, 2015, December 31, 2014, and December 31, 2013, differed from the amounts computed by applying the federal income tax rate of 34 percent to income before income taxes as follows: 2015 2014 2013 Expected federal income tax expense at statutory tax rate $ 911 679 1,498 Effect of nontaxable interest income (458 ) (542 ) (590 ) Effect of nontaxable bank owned life insurance income (114 ) (104 ) (120 ) Effect of QSCAB credit (109 ) (220 ) (220 ) State taxes on income, net of federal benefit 59 10 73 Other tax credits (80 ) (80 ) (80 ) Non deductible expenses 65 56 83 Total income tax expense $ 274 ($ 201 ) 644 Effective tax rate (benefit) 10.2 % (10.1 %) 14.6 % The components of deferred taxes as of December 31, 2015, and December 31, 2014, are summarized as follows: 2015 2014 Deferred tax assets: Allowance for loan loss $ 1,938 $ 2,116 Accrued expenses 377 89 Net operating loss carry forward 1,182 1,135 Tax credit carry forward 258 258 Intangible amortization 784 981 Other 267 287 Other real estate owned — 95 4,806 4,961 Deferred tax liabilities: FHLB stock dividends (787 ) (787 ) Unrealized gain on items in comprehensive income (1,275 ) (1,832 ) Depreciation and amortization (102 ) (81 ) (2,164 ) (2,700 ) Net deferred tax asset $ 2,642 $ 2,261 The Small Business Protection Act of 1996, among other things, repealed the tax bad debt reserve method for thrifts effective for taxable years beginning after December 31, 1995. Commercial banks with assets greater than $500 million can no longer use the reserve method and may only deduct loan losses as they actually arise (i.e., the specific charge-off method). At December 31, 2015, the Company has net operating loss carry forwards of $3.1 million which begin to expire in 2034. The portion of a thrift’s tax bad debt reserve that is not recaptured (generally pre-1988 bad debt reserves) under the 1996 law is only subject to recapture at a later date under certain circumstances. These include stock repurchase redemptions by the thrift or if the thrift converts to a type of institution (such as a credit union) that is not considered a bank for tax purposes. However, no recapture was required due to the Bank’s charter conversion from a thrift to a commercial bank or if the bank was acquired by another bank. The Bank does not anticipate engaging in any transactions at this time that would require the recapture of its remaining tax bad debt reserves. Therefore, retained earnings at December 31, 2015, and December 31, 2014, includes approximately $4,027,000 which represents such bad debt deductions for which no deferred income taxes have been provided. No valuation allowance for deferred tax assets was recorded at December 31, 2015, and December 31, 2014, as management believes it is more likely than not that all of the deferred tax assets will be realized because they were supported by recoverable taxes paid in prior years and expected future taxable income. There were no unrecognized tax benefits during any of the reported periods. The Corporation files income tax returns in the U.S. federal jurisdiction. The Company is no longer subject to U.S. federal income tax examinations by tax authorities for years before 2011. |
Real Estate and Other Assets Ow
Real Estate and Other Assets Owned | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Real Estate and Other Assets Owned | (14) Real Estate and Other Assets Owned: The Company’s real estate and other assets owned balances at December 31, 2015, and December 31, 2014, represent properties and personal collateral acquired by the Bank through customer loan defaults. The property is recorded at the lower of cost or fair value less estimated cost of to sell at the date acquired with any loss recognized as a charge off through the allowance for loan loss account. Additional real estate and other asset losses may be determined on individual properties at specific intervals or at the time of disposal. Additional losses are recognized as a non-interest expense. As of December 31, 2015, and December 31, 2014, the composition of the Company’s balance in both real estate and other assets owned are as follows: December 31, 2015 2014 One-to-four family mortgages $ 55 $ 159 Land 943 1,768 Non-residential real estate 738 — Total other assets owned $ 1,736 $ 1,927 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (15) Commitments and Contingencies In the ordinary course of business, the Bank has various outstanding commitments and contingent liabilities that are not reflected in the accompanying consolidated financial statements. The Bank had open loan commitments at December 31, 2015, and December 31, 2014, of approximately $46.4 million and $45.2 million, respectively. At December 31, 2015 and December 31, 2014, the Bank had no fixed rate loan commitments. Unused lines of credit were approximately $84.9 million and $80.1 million at December 31, 2015 and 2014, respectively. Also at December 31, 2015 and December 31, 2014, the Bank has unused consumer lines of credit tied to customer deposit accounts of $9.5 million and $35.5 million, respectively. The Company and the Bank have agreed to enter into employment agreements with certain officers, which provide certain benefits in the event of their termination following a change in control of the Company or the Bank. The employment agreements provide for an initial term of three years. On each anniversary of the commencement date of the employment agreements, the term of each agreement may be extended for an additional year at the discretion of the Board. In the event of a change in control of the Company or the Bank, as defined in the agreement, the officers shall be paid an amount equal to two times the officer’s base salary as defined in the employment agreement. The Company and the Bank have entered into commitments to rent facilities, purchase services and lease operating equipment that are non-cancelable. At December 31, 2015, future minimal purchase, lease and rental commitments were as follows: Years Ending December 31 2016 $ 2,352 2017 2,240 2018 1,505 2019 1,397 2020 — Total $ 7,494 The Company incurred rental expenses of approximately $61,000, $66,000 and $54,000 for the years ended December 31, 2015, December 31, 2014, and December 31, 2013, respectively. In the normal course of business, the Bank and Corporation have entered into operating contracts necessary to conduct the Company’s daily business. The most significant operating contract is for the Bank’s data processing services. The monthly cost associated with this contract is variable based on the number of accounts and usage but has an expected annual cost of approximately $1.4 million. The Bank has several ATM branding agreements with local businesses. These agreements allow the Bank to maintain a cash machine and signage in various locations for an annual cost of approximately $103,000. The Company is partially self-insured for medical benefits provided to employees. Heritage Bank is named as the plan administrator for this plan and has retained Anthem Blue Cross Blue Shield (“Anthem”) to process claims and handle other duties of the plan. Anthem does not assume any liabilities as a third party administrator. The Bank purchased two stop-loss insurance policies to limit total medical claims from Anthem. The first specific stop-loss policy limits the Company’s cost in any one year to $90,000 per covered individual. The Company has purchased a second stop-loss policy that limits the aggregate claims for the Company in a given year at $1,852,013 based upon the Company’s current enrollment. The Company has established a liability for outstanding claims as well as incurred but unreported claims. While management uses what it believes are pertinent factors in estimating the plan liability, the actual liability is subject to change based upon unexpected claims experience and fluctuations in enrollment during the plan year. At December 31, 2015, and December 31, 2014, the Company recognized a liability for self-insured medical expenses of approximately $400,000 and $170,000, respectively . The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit, standby letters of credit, and financial guarantees. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The contract or notional amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit and financial guarantees written is represented by the contractual notional amount of those instruments. The Company uses the same credit policies in making these commitments and conditional obligations as it does for on-balance-sheet instruments. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the counter-party. Collateral held varies but may include property, plant, and equipment and income-producing commercial properties. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing, and similar transactions. Most guarantees extend from one to two years. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. In October of 2008, the Company entered into an interest rate swap agreement for a term of seven years and an amount of $10 million. The Bank paid a fixed rate of 7.27% for seven years and received an amount equal to the three-month London Interbank Lending Rate (Libor) plus 3.10%. The interest rate swap was classified as a cash flow hedge by the Bank and was tested quarterly for effectiveness. The interest rate swap matured on October 8, 2015. The Bank, in the normal course of business, originates fixed rate mortgages that are sold to Freddie Mac. Upon tentative underwriting approval by Freddie Mac, the Bank issues a best effort commitment to originate a fixed rate first mortgage under specific terms and conditions that the Bank intends to sell to Freddie Mac. The Bank no longer assumes a firm commitment to originate fixed rate loans, thus eliminating the risk of having to deliver loans they did not close or pay commitment fees to make Freddie Mac whole. The Company is subject to various claims and legal actions that have arisen in the course of conducting business. Management does not expect the ultimate disposition of these matters to have a material adverse impact on the Company’s financial statements. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |
Regulatory Matters | (16) Regulatory Matters Prior to June 5, 2013, the Corporation was a federally chartered thrift holding company regulated by the Federal Reserve Bank and the bank subsidiary was regulated by the Office of the Comptroller of the Currency. On June 5, 2013, the Bank converted its charter to a Kentucky non-member state chartered commercial bank. The Corporation is now a commercial bank holding company and, as such, is subject to regulation, examination and supervision by the Federal Reserve Bank. The Corporation’s wholly owned bank subsidiary is a state chartered commercial bank supervised by the Kentucky Department of Financial Institutions and the Federal Deposit Insurance Corporation. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Corporation’s and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of tangible and core capital (as defined in the regulations) to adjusted total assets (as defined), and of total capital (as defined) and Tier 1 to risk weighted assets (as defined). Management believes, as of December 31, 2015, and December 31, 2014, that the Bank meets all capital adequacy requirements to which it is subject. The Company’s consolidated capital ratios and the Bank’s actual capital amounts and ratios as of December 31, 2015, and December 31, 2014, are presented below: To be Well For Capital Capitalized for Adequacy Prompt Correction Actual Purchases Action Provisions Amount Ratio Amount Ratio Amount Ratio As of December 31, 2015 Tier 1 leverage capital to adjusted total assets Company $ 95,156 10.9 % $ 34,924 4.0 % $ 43,656 5.0 % Bank $ 93,328 10.7 % $ 34,840 4.0 % $ 43,550 5.0 % Total capital to risk weighted assets Company $ 100,857 17.3 % $ 46,772 8.0 % $ 58,465 10.0 % Bank $ 99,029 17.1 % $ 46,272 8.0 % $ 57,840 10.0 % Tier 1 capital to risk weighted assets Company $ 95,156 16.3 % $ 35,079 6.0 % $ 46,772 8.0 % Bank $ 93,328 16.1 % $ 34,704 6.0 % $ 46,272 8.0 % Common equity tier 1 capital to risk weighted assets Company $ 95,156 16.3 % $ 26,309 4.5 % n/a n/a Bank $ 93,328 16.1 % $ 26,028 4.5 % $ 37,596 6.5 % As of December 31, 2014 Tier 1 leverage capital to adjusted total assets Company $ 104,813 11.1 % $ 37,763 4.0 % $ 47,204 5.0 % Bank $ 102,240 11.0 % $ 37,252 4.0 % $ 46,567 5.0 % Total capital to risk weighted assets Company $ 111,102 19.1 % $ 46,662 8.0 % $ 58,327 10.0 % Bank $ 108,529 18.6 % $ 46,576 8.0 % $ 58,220 10.0 % Tier 1 capital to risk weighted assets Company $ 104,813 18.0 % $ 23,331 4.0 % n/a n/a Bank $ 102,240 17.6 % $ 23,288 4.0 % $ 34,932 6.0 % |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | (17) Stockholders’ Equity The Company’s sources of income and funds for dividends to its stockholders are earnings on its investments and dividends from the Bank. The Bank’s primary regulator, the KDFI, has regulations that impose certain restrictions on payment of dividends to the Corporation. Current regulations of the KDFI allow the Bank (based upon its current capital level and supervisory status assigned by the KDFI) to pay a dividend as long as the Bank subsidiary maintains an appropriate Tier 1 Capital ratio. Furthermore, for the Bank to pay a dividend to the Corporation without regulatory approval, the dividend is limited to the total amount of the Bank’s current year net income plus the Bank’s net income of the prior two years less any previous dividends paid by the Bank to the Corporation during that time. At December 31, 2015, the Bank was unable to pay additional dividends to the Corporation without regulatory approval. Given the prospects for the approval of Basel III, the Company anticipates that in practice it will need to maintain a minimum Tier 1 Capital ratio of 8.50% at its bank subsidiary to continue to pay dividends to common shareholders and will structure its business plan to maintain a Tier 1 Capital ratio at the Bank level at or above 9.00%. Federal Reserve regulations also place restrictions after the conversion on the Company with respect to repurchases of its common stock. With prior notice to the Federal Reserve, the Company is allowed to repurchase its outstanding shares. In August 2006, under the supervision of the OTS, the Company announced that it replaced a previously announced stock buyback plan with a new plan to purchase up to 125,000 shares of common stock over the next two years. Under the plan that expired September 30, 2008, the Company purchased 106,647 shares of common stock at an average price of $15.36 per share. The Company reissued 112,639 shares of Treasury Stock as part of the stock offering discussed below. On October 28, 2014, the Company’s Board of Directors announced it may purchase an additional 300,000 shares of common stock and another 1.0 million shares of common stock for general corporate purchases or future employee benefit plans. That plan expired October 31, 2015, with the Company having purchased 860,303 shares of common stock and having reissued 600,000 shares of common stock to establish the ESOP. On November 18, 2015, the Company’s announced a new stock repurchase program of up to 300,000 shares of the Company’s common stock that will expire December 31, 2017. The Company will conduct repurchases through open market transactions or in privately negotiated transactions that may be made from time to time depending on market conditions and other factors. At December 31, 2015, the Company holds a total of 1,085,888 shares of treasury stock at an average price of $12.41 per share. At December 31, 2015, the Company may purchase 252,798 shares of treasury stock under the current approved plan. On December 12, 2008, HopFed Bancorp issued 18,400 shares of preferred stock to the United States Treasury (Treasury) for $18,400,000 pursuant to the Capital Purchase Program. The Company issued a Warrant to the Treasury as a condition to its participation in the Capital Purchase Program. The Warrant had an exercise price of $11.32 each and was immediately exercisable, giving the Treasury the right to purchase 243,816 shares of the Company’s Common Stock. The warrants expired ten years from the date of issuance. The Preferred Stock had no stated maturity and was non-voting, other than having class voting rights on certain matters, and pays cumulative dividends quarterly at a rate of 5% per year for the first five years and 9% thereafter. As a result of a 2% stock dividend paid to shareholders of record at September 30, 2010, and October 3, 2011, total warrants issued was adjusted to 253,667 and the warrant strike price was adjusted to $10.88. On December 19, 2012, HopFed Bancorp repurchased the 18,400 shares of Preferred Stock previously sold to the Treasury at par plus accrued dividends. The repurchase was accomplished with the assistance of a $6.0 million dividend paid to the Company from the Bank. On January 11, 2013, the Company repurchased the warrant from the Treasury for $256,257. On September 16, 2010, and September 21, 2011, respectively, the Company declared a 2% stock dividend payable to shareholders of record on September 30, 2010 and October 3, 2011. The stock dividend was paid on October 18, 2010, and October 18, 2011, resulting in the issuance of 143,458 shares of common stock in October of 2010 and 146,485 shares of common stock in October 2011. As discussed earlier, both the price and amount of all outstanding options and common stock warrants were adjusted accordingly. The common stock warrants were assigned a value of $2.28 per warrant, or $555,900. As a result, the value of the warrants was recorded as a discount on the preferred stock and was accreted as a reduction in net income available for common shareholders. In 2012, the Company accelerated the last year of our warrant accretion, recognizing $222,360 of accretion, due to the repurchase of all preferred stock from the Treasury and our stated plans to attempt to repurchase the warrant. For the purposes of these calculations, the fair value of the common stock warrants was estimated using the following assumptions: • Risk free rate 2.60 % • Expected life of warrants 10 years • Expected dividend yield 3.50 % • Expected volatility 26.5 % • Weighted average fair value $ 2.28 The Company’s computation of expected volatility is based on the weekly historical volatility. The risk free rate was the approximate rate of the ten year treasury at the end of November 2008. The Company has paid all interest payments due on HopFed Capital Trust 1. If interest payments to HopFed Capital Trust 1 are not made in a timely manner, the Company is prohibited from making cash dividend payments to its common shareholders. In July 2013, the Federal Reserve Board and the FDIC approved final rules that substantially amend the regulatory risk-based capital rules applicable to Heritage Bank USA, Inc. and HopFed Bancorp, Inc. The final rules implement the regulatory capital reforms of the Basel Committee on Banking Supervision reflected in “Basel III: A Global Regulatory Framework for More Resilient Banks and Banking Systems” (Basel III) and changes required by the Dodd-Frank Act. Under these rules, the leverage and risk-based capital ratios of bank holding companies may not be lower than the leverage and risk-based capital ratios for insured depository institutions. The final rules implementing the Basel III regulatory capital reforms will become effective as to the Bank and Corporation on January 1, 2015, and include new minimum risk-based capital and leverage ratios. Moreover, these rules refine the definition of what constitutes “capital” for purposes of calculating those ratios, including the definitions of Tier 1 capital and Tier 2 capital. The new minimum capital level requirements applicable to bank holding companies and banks subject to the rules are: • a new common equity Tier 1 capital ratio of 4.5%; • a Tier 1 risk-based capital ratio of 6% (increased from 4%) • a total risk-based capital ratio of 8% (unchanged from current rules) • a Tier 1 leverage ratio of 4% for all institutions. The rules also establish a “capital conservation buffer” of 2.5% (to be phased in over three years) above the new regulatory minimum risk-based capital ratios, and result in the following minimum ratios once the capital conservation buffer is fully phased in: • a common equity Tier 1 risk-based capital ratio of 7.0% • a Tier 1 risk-based capital ratio of 8.5% • a total risk-based capital ratio of 10.5%. At December 31, 2015, the Bank and Corporation met all fully phased capital requires of Basel III, including the capital conservation buffer of 2.5%. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (18) Earnings Per Share Earnings per share of common stock are based on the weighted average number of basic shares and dilutive shares outstanding during the year. Common stock warrants outstanding are not included in the dilutive earnings per share computations because they would be anti-dilutive. The following is a reconciliation of weighted average common shares for the basic and dilutive earnings per share computations: Years Ended December 31, 2015 2014 2013 Basic earnings per share: Weighted average common shares 6,919,190 7,306,078 7,483,606 Adjustment for ESOP activity (546,913 ) — — Weighted average common shares 6,372,277 7,306,078 7,483,606 Dilutive effect of stock options — — — Weighted average common and incremental shares 6,372,277 7,306,078 7,483,606 |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | (19) Variable Interest Entities: Under ASC 810, the Company is deemed to be the primary beneficiary and required to consolidate a variable interest entity (VIE) if it has a variable interest in the VIE that provides it with a controlling financial interest. For such purposes, the determination of whether a controlling financial interest exists is based on whether a single party has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. ASC 810 requires continual reconsideration of conclusions reached regarding which interest holder is a VIE’s primary beneficiary and disclosures surrounding those VIE’s which have not been consolidated. The consolidation methodology provided in this footnote as of December 31, 2015, and December 31, 2014, has been prepared in accordance with ASC 810. At December 31, 2015, the Company did not have any consolidated variable interest entities to disclose but did have a commitment to a low income housing partnership and issued trust preferred securities. |
Condensed Parent Company Only F
Condensed Parent Company Only Financial Statements | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Parent Company Only Financial Statements | (20) Condensed Parent Company Only Financial Statements The following condensed balance sheets as of December 31, 2015, and December 31, 2014, and condensed statements of income and cash flows for the years ended December 31, 2015, December 31, 2014, and December 31, 2013, of the parent company only should be read in conjunction with the consolidated financial statements and the notes thereto. Condensed Balance Sheets: 2015 2014 Assets: Cash and due from banks $ 2,087 2,932 Investment in subsidiary 95,804 106,088 Prepaid expenses and other assets 490 534 Total assets $ 98,381 109,554 Liabilities and equity Liabilities Unrealized loss on derivative $ — 390 Dividends payable - common 287 301 Interest payable 89 87 Other liabilities 65 64 Subordinated debentures 10,310 10,310 Total liabilities 10,751 11,152 Equity: Preferred stock — — Common stock 79 79 Additional paid-in capital 58,604 58,466 Retained earnings 47,124 45,729 Treasury stock- common stock (13,471 ) (9,429 ) Unearned ESOP shares (7,180 ) — Accumulated other comprehensive income 2,474 3,557 Total equity 87,630 98,402 Total liabilities and equity $ 98,381 109,554 Condensed Statements of Income: 2015 2014 2013 Interest and dividend income: Dividend income from subsidiary Bank $ 12,100 2,600 5,500 Total interest and dividend income 12,100 2,600 5,500 Interest expense 740 737 733 Non-interest expenses 541 546 684 Total expenses 1,281 1,283 1,417 Income before income taxes and equity in undistributed earnings of subsidiary 10,819 1,317 4,083 Income tax benefits (529 ) (459 ) (496 ) Income before equity in undistributed earnings of subsidiary 11,348 1,776 4,579 Equity in (distribution in excess of) earnings of subsidiary (8,944 ) 423 (817 ) Income available to common shareholders $ 2,404 2,199 3,762 Condensed Statements of Cash Flows: 2015 2014 2013 Cash flows from operating activities: Net income $ 2,404 2,199 3,762 Adjustments to reconcile net income to net cash (used in) provided by operating activities Equity in undistributed earnings of subsidiary 8,943 (423 ) 817 Amortization of restricted stock 190 164 115 Increase (decrease) in: Current income taxes payable 11 200 (355 ) Accrued expenses (149 ) 280 (142 ) Net cash (used in) provided by operating activities: 11,399 2,420 4,197 Cash flows for investing activities: Net cash flow used in investing activities — — — Cash flows from financing activities: Purchase of preferred stock - treasury — — — Purchase of common stock - treasury (11,926 ) (3,500 ) (853 ) Purchase of common stock warrant — — (257 ) Proceeds on ESOP loan 704 — — Dividends paid on common stock (1,022 ) (1,187 ) (751 ) Net cash (used in) provided by financing activities (12,244 ) (4,687 ) (1,861 ) Net increase (decrease) in cash (845 ) (2,267 ) 2,336 Cash and due from banks at beginning of year 2,932 5,199 2,863 Cash and due from banks at end of year $ 2,087 2,932 5,199 |
Investments in Affiliated Compa
Investments in Affiliated Companies | 12 Months Ended |
Dec. 31, 2015 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Investments in Affiliated Companies | (21) Investments in Affiliated Companies (Unaudited): Investments in affiliated companies accounted for under the equity method consist of 100% of the common stock of HopFed Capital Trust I (the Trust), a wholly owned statutory business trust. The Trust was formed on September 25, 2003. Summary financial information for the HopFed Capital Trust 1 is as follows: Summary Balance Sheets December. 31, December. 31, Asset – investment in subordinated debentures issued by HopFed Bancorp, Inc. $ 10,310 10,310 Liabilities $ — — Stockholders’ equity: Trust preferred securities 10,000 10,000 Common stock (100% owned by HopFed Bancorp, Inc.) 310 310 Total stockholder’s equity 10,310 10,310 Total liabilities and stockholder’s equity $ 10,310 10,310 Summary Statements of Income Years Ended December. 31, 2015 2014 Income – interest income from subordinated debentures issued by HopFed Bancorp, Inc. $ 354 348 Net income $ 354 348 Summary Statements of Stockholder’s Equity Trust Common Retained Total Beginning balances, January 1, 2015 $ 10,000 310 — 10,310 Retained earnings: Net income — — 354 354 Dividends: Trust preferred securities — — (343 ) (343 ) Common dividends paid to HopFed Bancorp, Inc. — — (11 ) (11 ) Total retained earnings — — — — Ending balances, December 31, 2015 $ 10,000 310 — 10,310 |
Quarterly Results of Operations
Quarterly Results of Operations | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations | (22) Quarterly Results of Operations Summarized unaudited quarterly operating results for the year ended December 31, 2015: First Second Third Fourth December 31, 2015: Interest and dividend income $ 9,195 7,919 8,012 7,996 Interest expense 1,633 1,612 1,633 1,672 Net interest income 7,562 6,307 6,379 6,324 Provision for loan losses 215 270 275 291 Net interest income after provision for loan losses 7,347 6,037 6,104 6,033 Noninterest income 1,913 1,868 1,936 1,885 Noninterest expense 7,470 8,234 7,553 7,188 Income (loss) before income taxes 1,790 (329 ) 487 730 Income tax expense (benefit) 435 (212 ) (23 ) 74 Net income (loss) $ 1,355 (117 ) 510 656 Basic earnings (loss) per share $ 0.20 (0.02 ) 0.08 0.10 Diluted earnings (loss) per share $ 0.20 (0.02 ) 0.08 0.10 Weighted average shares outstanding: Basic 6,732,456 6,425,687 6,359,556 6,328,324 Diluted 6,732,456 6,425,687 6,359,556 6,328,324 Summarized unaudited quarterly operating results for the year ended December 31, 2014: First Second Third Fourth Quarter Quarter Quarter Quarter December 31, 2014: Interest and dividend income $ 8,658 8,734 8,994 8,294 Interest expense 2,338 2,354 2,186 2,001 Net interest income 6,320 6,380 6,808 6,293 Provision for loan losses 380 (261 ) (892 ) (1,500 ) Net interest income after provision for loan losses 5,940 6,641 7,700 7,793 Noninterest income 1,598 1,945 2,393 1,904 Noninterest expense 7,324 7,447 7,563 11,582 Income (loss) before income taxes 214 1,139 2,530 (1,885 ) Income tax expense (benefit) (140 ) 214 577 (852 ) Net income (loss) $ 354 925 1,953 (1,033 ) Basic earnings (loss) per share $ 0.05 0.13 0.27 (0.14 ) Diluted earnings (loss) per share $ 0.05 0.13 0.27 (0.14 ) Weighted average shares outstanding: Basic 7,416,716 7,376,726 7,265,597 7,165,957 Diluted 7,416,716 7,376,726 7,265,597 7,165,957 |
Comprehensive Income
Comprehensive Income | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Comprehensive Income | (23) Comprehensive Income FASB ASC 220, Comprehensive Income Pre-Tax Tax Benefit Net of Tax Amount (Expense) Amount December 31, 2015: Unrealized holding gains (losses) on: Available for sale securities ($ 1,698 ) 577 (1,121 ) Available for sale securities – OTTI 359 (122 ) 237 Derivatives 389 (132 ) 257 Reclassification adjustments for gains on: Available for sale securities (691 ) 235 (456 ) ($ 1,641 ) 558 (1,083 ) December 31, 2014: Unrealized holding gains on: Available for sale securities $ 7,773 (2,643 ) 5,130 Derivatives 359 (122 ) 237 Reclassification adjustments for gains on: Available for sale securities (578 ) 197 (381 ) $ 7,554 (2,568 ) 4,986 December 31, 2013: Unrealized holding gains on: Available for sale securities ($ 16,012 ) 5,444 (10,568 ) Derivatives 376 (128 ) 248 Reclassification adjustments for gains on: Available for sale securities (1,661 ) 565 (1,096 ) Other than temporary impairment 400 (136 ) 264 ($ 16,897 ) 5,745 (11,152 ) |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Event | (24) Subsequent Event On February 12, 2016, the Kentucky Department of Financial Institutions granted Heritage Bank permission to pay a $2.0 million cash dividend from the Bank to the Corporation. The Bank will pay the dividend in one lump sum in 2016. |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Nature of Operations and Customer Concentration | Nature of Operations and Customer Concentration HopFed Bancorp, Inc. (the Corporation) is a bank holding company incorporated in the state of Delaware and headquartered in Hopkinsville, Kentucky. The Corporation’s principal business activities are conducted through its wholly-owned subsidiary, Heritage Bank USA, Inc. (the Bank), a Kentucky state chartered commercial bank engaged in the business of accepting deposits and providing mortgage, consumer, construction and commercial loans to the general public through its retail banking offices. The Bank’s business activities are primarily limited to western Kentucky and middle and western Tennessee. The Bank is subject to competition from other financial institutions. Deposits at the Bank are insured up to the applicable limits by the Federal Deposit Insurance Corporation (FDIC). As part of the enactment of the Dodd-Frank Financial Reform Act of 2010, the Corporation and Bank’s former regulator, the Office of Thrift Supervision, was eliminated on July 21, 2011. Prior to June 5, 2013, the Bank was subject to comprehensive regulation, examination and supervision by the Office of Comptroller of the Currency (OCC) and the FDIC. After June 5, 2013, the Bank’s legal name was changed to Heritage Bank USA, Inc. and the Bank was granted a Kentucky commercial bank charter and is now supervised by the Kentucky Department of Financial Institutions (“KDFI”) and the Federal Deposit Insurance Corporation (“FDIC”). Supervision of the Corporation continues to be conducted by the Federal Reserve Bank of Saint Louis (“FED”). A substantial portion of the Bank’s loans are secured by real estate in the western Kentucky and middle and west Tennessee markets. In addition, foreclosed real estate is located in this same market. Accordingly, the ultimate ability to collect on a substantial portion of the Bank’s loan portfolio and the recovery of a substantial portion of the carrying amount of foreclosed real estate is susceptible to changes in local market conditions. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Corporation and the Bank (collectively the Company) for all periods. Significant inter-company balances and transactions have been eliminated in consolidation. |
Accounting | Accounting The accounting and reporting policies of the Company are in accordance with accounting principles generally accepted in the United States of America and conform to general practices in the banking industry. The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity (VIE) under accounting principles generally accepted in the United States. Voting interest entities in which the total equity investment is a risk is sufficient to enable the entity to finance itself independently and provides the equity holders with the obligation to absorb losses, the right to receive residual returns and the right to make decision about the entity’s activities. The Company consolidates voting interest entities in which it has all, or at least a majority of, the voting interest. As defined in applicable accounting standards, VIE’s are entities in which it has all, or at least a majority of, the voting interest. A controlling financial interest in a VIE is present when an enterprise has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and an obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The subsidiaries, HopFed Capital Trust I and Fort Webb LP, LLC are VIEs for which the Company is not the primary beneficiary. Accordingly, these accounts are not included in the Company’s consolidated financial statements. The Company has evaluated subsequent events for potential impact and disclosure through the issue date of these consolidated financial statements. |
Estimates | Estimates In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheets and revenues and expenses for each year. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. In connection with the determination of the allowances for loan losses and foreclosed real estate, management obtains independent appraisals for significant collateral. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents are defined as cash on hand, amounts due on demand from commercial banks, interest-earning deposits in other financial institutions and federal funds sold with maturities of three months or less. The Company is required to maintain reserve funds in either cash on hand or on deposit with the Federal Reserve Bank. At December 31, 2015, the Company’s reserve requirement was met to available cash on hand. |
Securities | Securities The Company reports debt, readily-marketable equity, mortgage-backed and mortgage related securities in one of the following categories: (i) “trading” (held for current resale) which are to be reported at fair value, with unrealized gains and losses included in earnings; and (ii) “available for sale” (all other debt, equity, mortgage-backed and mortgage related securities) which are to be reported at fair value, with unrealized gains and losses reported net of tax as a separate component of stockholders’ equity. At the time of new security purchases, a determination is made as to the appropriate classification. Realized and unrealized gains and losses on trading securities are included in net income. Unrealized gains and losses on securities available for sale are recognized as direct increases or decreases in stockholders’ equity, net of any tax effect. Cost of securities sold is recognized using the specific identification method. Interest income on securities is recognized as earned. The Company purchases many agency bonds at either a premium or discount to its par value. Premiums and discounts on agency bonds are amortized using the net interest method. For callable bonds purchased at a premium, the premium is amortized to the first call date. If the bond is not called on that date, the premium is fully amortized and the Company recognizes an increase in the net yield of the investment. The Company has determined that callable bonds purchased at a premium have a high likelihood of being called, and the decision to amortize premiums to their first call is a more conservative method of recognizing income and any variance from amortizing to contractual maturity is not material to the consolidated financial statements. For agency bonds purchased at a discount, the discount is accreted to the final maturity date. For callable bonds purchased at discount and called before maturity, the Company recognizes a gain on the sale of securities. The Company amortizes premiums and accretes discounts on mortgage back securities and collateralized mortgage obligations based on the securities three month average prepayment speed. |
Other Than Temporary Impairment | Other Than Temporary Impairment A decline in the fair value of any available-for-sale security below cost that is deemed to be other-than-temporary results in a reduction in the carrying amount to fair value. To determine whether impairment is other-than-temporary, management considers whether the entity expects to recover the entire amortized cost basis of the security by reviewing the present value of the future cash flows associated with the security. The shortfall of the present value of the cash flows expected to be collected in relation to the amortized cost basis is referred to as a credit loss. If a credit loss is identified, management then considers whether it is more-likely-than-not |
Other Securities | Other Securities Other securities which are not actively traded and may be restricted, such as Federal Home Loan Bank (FHLB) stock are recognized at cost, as the value is not considered impaired. |
Loans Receivable | Loans Receivable Loans receivable are stated at unpaid principal balances, less the allowance for loan losses and deferred loan cost. The Statement of Financial Accounting Standards ASC 310-20, Nonrefundable Fees and Other Costs Associated with Originating or Acquiring Loans and Initial Direct Costs of Leases, The Company provides an allowance for loan losses and includes in operating expenses a provision for loan losses determined by management. Management’s periodic evaluation of the adequacy of the allowance is based on the Company’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, and current economic conditions. Management’s estimate of the adequacy of the allowance for loan loss can be classified as either a reserve for currently classified loans or estimates of future losses in the current loan portfolio. Loans are considered to be impaired when, in management’s judgment, principal or interest is not collectible according to the contractual terms of the loan agreement. When conducting loan evaluations, management considers various factors such as historical loan performance, the financial condition of the borrower and adequacy of collateral to determine if a loan is impaired. Impaired loans and loans classified as Troubled Debt Restructurings (“TDR’s”) may be classified as either substandard or doubtful and reserved for based on individual loans risk for loss. Loans not considered impaired may be classified as either special mention or watch and may have an allowance established for it. Typically, unimpaired classified loans exhibit some form of weakness in either industry trends, collateral, or cash flow that result in a default risk greater than that of the Company’s typical loan. All classified amounts include all unpaid interest and fees as well as the principal balance outstanding. The measurement of impaired loans generally may be based on the present value of future cash flows discounted at the historical effective interest rate. However, the majority of the Company’s problem loans become collateral dependent at the time they are judged to be impaired. Therefore, the measurement of impaired requires the Company to obtain a new appraisal to obtain the fair value of the collateral. The appraised value is then discounted to an estimated of the Company’s net realizable value, reducing the appraised value by the amount of holding and selling cost. When the measured amount of an impaired loan is less than the recorded investment in the loan, the impairment is recorded as a charge to income and a valuation allowance, which is included as a component of the allowance for loan losses. For loans not individually evaluated, management considers the Company’s recent charge off history, the Company’s current past due and non-accrual trends, banking industry trends and both local and national economic conditions when making an estimate as to the amount to reserve for losses. Management believes it has established the allowance in accordance with accounting principles generally accepted in the United States of America and has taken into account the views of its regulators and the current economic environment. |
Loans Held for Sale | Loans held for sale Mortgage loans originated and intended for sale are carried at the lower of cost or estimated fair value as determined on a loan-by-loan |
Fixed Rate Mortgage Originations | Fixed Rate Mortgage Originations The Company operates a mortgage division that originates mortgage loans in the name of assorted investors, including Federal Home Loan Mortgage Corporation (Freddie Mac). Originations for Freddie Mac are sold through the Bank while originations to other investors are processed for a fee. On a limited basis, loans sold to Freddie Mac may result in the Bank retaining loan servicing rights. In recent years, customers have chosen lower origination rates over having their loan locally serviced; thereby limiting the amount of new loans sold with servicing retained. At December 31, 2015, the Bank maintained a servicing portfolio of one to four family real estate loans of approximately $22.8 million. For the years ended December 31, 2015, December 31, 2014, and December 31, 2013, the Bank has reviewed the value of the servicing asset as well as the operational cost associated with servicing the portfolio. The Bank has determined that the values of its servicing rights are not material to the Company’s consolidated financial statements. |
Real Estate and Other Assets Owned | Real Estate and Other Assets Owned Assets acquired through, or in lieu of, loan foreclosure or repossession carried at the lower of cost or fair value less selling expenses. Costs of improving the assets are capitalized, whereas costs relating to holding the property are expensed. Management conducts periodic valuations (no less than annually) and any adjustments to value are recognized in the current period’s operations. |
Brokered Deposits | Brokered Deposits The Company may choose to attract deposits from several sources, including using outside brokers to assist in obtaining time deposits using national distribution channels. Brokered deposits offer the Company an alternative to Federal Home Loan Bank advances and local retail time deposits |
Repurchase Agreements | Repurchase Agreements The Company sells investments from its portfolio to business and municipal customers with a written agreement to repurchase those investments on the next business day. The repurchase product gives business customers the opportunity to earn income on liquid cash reserves. These funds are overnight borrowings of the Company secured by Company assets and are not FDIC insured. |
Treasury Stock | Treasury Stock The Company may occasional purchase its own common stock either in open market transactions or privately negotiated transactions. The value of the Company’s common stock held in treasury is listed at cost. |
Unearned ESOP Shares | Unearned ESOP Shares The Company offers an Employee Stock Ownership Plan (“ESOP”) to the employees of the Company. The unearned portion of common stock of the Company held in the ESOP Trust is recorded on the balance sheet at cost. Common stock is released from the ESOP Trust to the Company’s employees as the Bank makes payments on the loan to the Corporation on behalf of the ESOP Trust. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income and other comprehensive income, net of applicable income taxes. Other comprehensive income includes unrealized appreciation (depreciation) on available-for-sale securities and unrealized appreciation (depreciation) on available-for-sale securities for which a portion of an other than temporary impairment has been recognized in income. FASB ASC 220, Comprehensive Income |
Revenue Recognition | Revenue Recognition Mortgage loans held for sale are generally delivered to secondary market investors under best efforts sales commitments entered into prior to the closing of the individual loan. Loan sales and related gains or losses are recognized at settlement. Loan fees earned for the servicing of secondary market loans are recognized as earned. Interest income on loans receivable is reported on the interest method. Interest income is not reported when full loan repayment is in doubt, typically when the loan is impaired, placed in non-accrual status, or payments are past due more than 90 days. Interest earned as reported as income is reversed on any loans classified as non-accrual or past due more than 90 days. Interest may continue to accrue on loans over 90 days past due if they are well secured and in the process of collection. |
Income Taxes | Income Taxes Income taxes are accounted for through the use of the asset and liability method. Under the asset and liability method, deferred taxes are recognized for the tax consequences of temporary differences by applying enacted statutory rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The effect on deferred taxes of a change in tax rates would be recognized in income in the period that includes the enactment date. The Company files its federal and Kentucky income tax returns as well as its Kentucky and Tennessee franchise and excise tax returns on a consolidated basis with its subsidiaries. All taxes are accrued on a separate entity basis. |
Operating Segments | Operating Segments The Company’s continuing operations include one primary segment, retail banking. The retail banking segment involves the origination of commercial, residential and consumer loans as well as the collections of deposits in eighteen branch offices. |
Premises and Equipment | Premises and Equipment Land, land improvements, buildings, and furniture and equipment are carried at cost, less accumulated depreciation and amortization. Buildings and land improvements are depreciated generally by the straight-line method, and furniture and equipment are depreciated under various methods over the estimated useful lives of the assets. The Company capitalizes interest expense on construction in process at a rate equal to the Company’s cost of funds. The estimated useful lives used to compute depreciation are as follows: Land improvements 5-15 years Buildings 40 years Furniture and equipment 5-15 years |
Intangible Assets | Intangible Assets The core deposit intangible asset related to the middle Tennessee acquisition of June 2006 is amortized using the sum of the year’s digits method over an estimated period of nine years. At December 31, 2015, the core deposit intangible was fully amortized. |
Bank Owned Life Insurance | Bank Owned Life Insurance Bank owned life insurance policies (BOLI) are recorded at the cash surrender value or the amount to be realized upon current redemption. The realization of the redemption value is evaluated for each insuring entity that holds insurance contracts annually by management. |
Advertising | Advertising The Company expenses the production cost of advertising as incurred. |
Financial Instruments | Financial Instruments The Company has entered into off-balance-sheet financial instruments consisting of commitments to extend credit and commercial letters of credit. Such financial instruments are recorded in the consolidated financial statements when they are funded or related fees are incurred or received. |
Derivative Instruments | Derivative Instruments Under guidelines ASC 815 , Accounting for Derivative Instruments and Hedging Activities A derivative instrument designated in a hedge relationship to mitigate exposure to changes in the fair value of an asset, liability or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges under ASC 815. Derivative instruments designated in a hedge relationship to mitigate exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Cash value hedges are accounted for by recording the fair value of the derivative instrument and the fair value related to the risk being hedged of the hedged asset or liability on the consolidated balance sheet with corresponding offsets recorded in the consolidated balance sheet. The adjustment to the hedged asset or liability is included in the basis of the hedged item, while the fair value of the derivative is recorded as a freestanding asset or liability. Actual cash receipts or payments and related amounts accrued during the period on derivatives included in a fair value hedge relationship are recorded as adjustments to the income or expense recorded on the hedged asset or liability. Under both the fair value and cash flow hedge methods, derivative gains and losses not effective in hedging the change in fair value or expected cash flows of the hedged item are recognized immediately in the income statement. At the hedge’s inception and at least quarterly thereafter, a formal assessment is performed to determine whether changes in the fair values or cash flows of the derivative instrument has been highly effective in offsetting changes in the fair values or cash flows of the hedged items and whether they are expected to be highly effective in the future. If it is determined a derivative instrument has not been, or will not continue to be highly effective as a hedge, hedged accounting is discontinued. ASC 815 basis adjustments recorded on hedged assets and liabilities are amortized over the remaining life of the hedged item beginning no later than when hedge accounting ceases. There were no fair value hedging gains or losses, as a result of hedge ineffectiveness, recognized for the years ended December 31, 2015, December 31, 2014, and December 31, 2013, respectively. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments ASC 825, Disclosures about Fair Value of Financial Instruments, The following are the more significant methods and assumptions used by the Company in estimating its fair value disclosures for financial instruments: Cash and cash equivalents The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents approximate those assets’ fair values, because they mature within 90 days or less and do not present credit risk concerns. Interest earning deposits The carrying amounts reported in the consolidated balance sheets for interest earning deposits approximate those assets’ fair values, because they are considered overnight deposits and may be withdrawn at any time without penalty and do not present credit risk concerns. Available-for-sale securities Fair values for investment securities available-for-sale are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments provided by a third party pricing service. The Company reviews all securities in which the book value is greater than the market value for impairment that is other than temporary. For securities deemed to be other than temporarily impaired, the Company reduces the book value of the security to its market value by recognizing an impairment charge on its income statement. Loans held for sale Mortgage loans originated and intended to be sold are carried at the lower of cost or estimated fair value as determined on a loan by loan basis. Gains or losses are recognized at the time of ownership transfer. Net unrealized losses, if any, are recognized through a valuation allowance and charged to income. Loans receivable The fair values for of fixed-rate loans and variable rate loans that re-price on an infrequent basis is estimated using discounted cash flow analysis which considers future re-pricing dates and estimated repayment dates, and further using interest rates currently being offered for loans of similar type, terms to borrowers of similar credit quality. Loan fair value estimates include judgments regarding future expected loss experience and risk characteristics. The estimated fair value of variable-rate loans that re-price frequently and with have no significant change in credit risk is approximately the carrying value of the loan. Letters of credit The fair value of standby letters of credit is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements, the likelihood of the counter parties drawing on such financial instruments and the present creditworthiness of such counter parties. Such commitments have been made on terms which are competitive in the markets in which the Company operates, thus, the fair value of standby letters of credit equals the carrying value for the purposes of this disclosure. Accrued interest receivable Fair value is estimated to approximate the carrying amount because such amounts are expected to be received within 90 days or less and any credit concerns have been previously considered in the carrying value. Repurchase agreements Overnight repurchase agreements have a fair value at book, given that they mature overnight. The fair values for of longer date repurchase agreements is estimated using discounted cash flow analysis which considers the current market pricing for repurchase agreements of similar final maturities and collateral requirements. Bank owned life insurance The fair value of bank owned life insurance is the cash surrender value of the policy less redemption charges. By surrendering the policy, the Company is also subject to federal income taxes on all earnings previously recognized. Deposits The fair values disclosed for deposits with no stated maturity such as demand deposits, interest-bearing checking accounts and savings accounts are, by definition, equal to the amount payable on demand at the reporting date (that is, their carrying amounts). The fair values for certificates of deposit and other fixed maturity time deposits are estimated using a discounted cash flow calculation that applies interest rates currently being offered on such type accounts or similar accounts to a schedule of aggregated contractual maturities or similar maturities on such time deposits. Advances from the Federal Home Loan Bank (FHLB) The fair value of these advances is estimated by discounting the future cash flows of these advances using the current rates at which similar advances or similar financial instruments could be obtained. FHLB stock The fair value of FHLB stock is recognized at cost. Subordinated debentures The book value of subordinated debentures is cost. The subordinated debentures re-price quarterly at a rate equal to three month libor plus 3.10%. Treasury Stock The book value of treasury stock is cost and includes acquisition fees, if any. Unearned ESOP Shares The book value of unearned ESOP shares is cost. Off-Balance-Sheet Instruments Off-balance-sheet lending commitments approximate their fair values due to the short period of time before the commitment expires. |
Dividend Restrictions | Dividend Restrictions The Company is not permitted to pay a dividend to common shareholders if it fails to make a quarterly interest payment to the holders of the Company’s subordinated debentures. Furthermore, the Bank may be restricted in the payment of dividends to the Corporation by the KDFI or FDIC. Any restrictions imposed by either regulator would effectively limit the Company’s ability to pay a dividend to its common stockholders as discussed in Note 17. At December 31, 2015, there were no such restrictions. At December 31, 2015, the Corporation has approximately $2.1 million in cash on hand available to pay common dividends and repurchase treasury stock as outlined in Note 20. At December 31, 2015, the Bank may not pay an additional cash dividend to the Company without regulatory approval. |
Earnings Per Share | Earnings Per Share Earnings per share (EPS) consists of two separate components, basic EPS and diluted EPS. Basic EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for each period presented. Diluted EPS is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding plus dilutive common stock equivalents (CSE). CSE consists of dilutive stock options granted through the Company’s stock option plan. Restricted stock awards represent future compensation expense and are dilutive. Common stock equivalents which are considered anti-dilutive are not included for the purposes of this calculation. Common stock warrants issued in December 2008 and all stock options outstanding are currently anti-dilutive and are not included for the purposes of this calculation. |
Stock Compensation | Stock Compensation The Company utilized the Black-Sholes valuation model to determine the fair value of stock options on the date of grant. The model derives the fair value of stock options based on certain assumptions related to the expected stock prices volatility, expected option life, risk-free rate of return and the dividend yield of the stock. The expected life of options granted is estimated based on historical employee exercise behavior. The risk free rate of return coincides with the expected life of the options and is based on the ten year Treasury note rate at the time the options are issued. The historical volatility levels of the Company’s common stock are used to estimate the expected stock price volatility. The set dividend yield is used to estimate the expected dividend yield of the stock. |
Effect of New Accounting Pronouncements | Effect of New Accounting Pronouncements ASU 2015-01, “Income Statement - Extraordinary and Unusual Items (Subtopic 225-20) – Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” ASU No. 2015-02, “Amendments to the Consolidation Analysis.” In May 2014, the FASB issued new guidance related to Revenue from Contracts with Customers Revenue Recognition On June 12, 2014, the FASB issued ASU 2014-11, which makes limited amendments to the guidance in ASC 860 on accounting for certain repurchase agreements (“repos”). ASU 2014-11 requires entities to account for repurchase-to-maturity transactions as secured borrowings (rather than as sales with forward repurchase agreements), (2) eliminates accounting guidance on linked repurchase financing transactions, and (3) expands disclosure requirements related to certain transfers of financial assets that are accounted for as sales and certain transfers (specifically, repos, securities lending transactions, and repurchase-to-maturity transactions) accounted for as secured borrowings. ASU 2014-11 also amends ASC 860 to clarify that repos and securities lending transactions that do not meet all of the de-recognition criteria in ASC 860-10-40-5 should be accounted for as secured borrowings. In addition, the ASU provides examples of repurchase and securities lending arrangements that illustrate whether a transferor has maintained effective control over the transferred financial assets. For public business entities, the accounting changes were effective beginning after January 1, 2015. The implementation of ASU 2014-11 did not have a material impact on the Company’s Consolidated Financial Statements. In September 2015, the FASB issued Accounting Standards Update No. 2015-16, Simplifying the Accounting for Measurement-Period Adjustments In January 2014, the FASB issued ASU No. 2014-04, Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. ASU 2015-02, “Consolidation (Topic 810) – Amendments to the Consolidation Analysis.” ASU 2015-03, “Interest – Imputation of Interest (Subtopic 835-30) – Simplifying the Presentation of Debt Issuance Costs ” ASU 2015-15, “Interest – Imputation of Interest (Subtopic 835-30) – Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting.” ASU 2016-1, “No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2015-05, “Intangibles – Goodwill and Other—Internal-Use Software (Subtopic 350-40) – Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” Other accounting standards that have been issued or proposed by the FASB or other standards- bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows. |
Reclassifications | Reclassifications Certain items in prior financial statements have been reclassified to conform to the current presentation. |
Troubled Debt Restructuring | Troubled Debt Restructuring On a periodic basis, the Company may modify the terms of certain loans. In evaluating whether a restructuring constitutes a troubled debt restructuring (TDR), Financial Accounting Standards Board has issued Accounting Standards Update 310 (ASU 310); A Creditor’s Determination of Whether a Restructuring is a Troubled Debt Restructuring. a.) The restructuring constitutes a concession b.) The debtor is experiencing financial difficulties ASU 310 provides the following guidance for the Company’s evaluation of whether it has granted a concession as follows: If a debtor does not otherwise have access to funds at a market interest rate for debt with similar risk characteristics as the restructured debt, the restructured debt would be considered a below market rate, which may indicate that the Company may have granted a concession. In that circumstance, the Company should consider all aspects of the restructuring in determining whether it has granted a concession, the creditor must make a separate assessment about whether the debtor is experiencing financial difficulties to determine whether the restructuring constitutes a TDR. A temporary or permanent increase in the interest rate on a loan as a result of a restructuring does not eliminate the possibility of the restructuring from being considered a concession if the new interest rate on the loan is below the market interest rate for loans of similar risk characteristics. A restructuring that results in a delay in payment that is insignificant is not a concession. However, the Company must consider a variety of factors in assessing whether a restructuring resulting in a delay in payment is insignificant. |
Fair Value Measurement | In September 2006, FASB issued ASC Topic 820, Fair Value Measurements and Disclosures. HopFed Bancorp has developed a process for determining fair values. Fair value is based upon quoted market prices, where available. If listed prices or quotes are not available, fair value is based upon internally developed models or processes that use primarily market based or based on third party market data, including interest rate yield curves, option volatilities and other third party information. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies, or assumptions, to determine the fair value of certain financials instruments could result in a different estimate of fair value at the reporting date. ASC 820 establishes a three-level valuation hierarchy for disclosure of fair value measurement. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. • Level 1 is for assets and liabilities that management has obtained quoted prices (unadjusted for transaction cost) or identical assets or liabilities in active markets that the Company has the ability to access as of the measurement date. • Level 2 is for assets and liabilities in which significant unobservable inputs other than Level 1 prices such as quoted prices for similar assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3 is for assets and liabilities in which significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The fair value of securities available for sale are determined by a matrix pricing, which is a mathematical technique what is widely used in the industry to value debt securities without relying exclusively on quoted prices for the individual securities in the Company’s portfolio but relying on the securities relationship to other benchmark quoted securities. Impaired loans are valued at the net present value of expected payments and considering the fair value of any assigned collateral. |
Variable Interest Entities | Under ASC 810, the Company is deemed to be the primary beneficiary and required to consolidate a variable interest entity (VIE) if it has a variable interest in the VIE that provides it with a controlling financial interest. For such purposes, the determination of whether a controlling financial interest exists is based on whether a single party has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. ASC 810 requires continual reconsideration of conclusions reached regarding which interest holder is a VIE’s primary beneficiary and disclosures surrounding those VIE’s which have not been consolidated. The consolidation methodology provided in this footnote as of December 31, 2015, and December 31, 2014, has been prepared in accordance with ASC 810. At December 31, 2015, the Company did not have any consolidated variable interest entities to disclose but did have a commitment to a low income housing partnership and issued trust preferred securities. |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Useful Life of Property, Plant, and Equipment | The estimated useful lives used to compute depreciation are as follows: Land improvements 5-15 years Buildings 40 years Furniture and equipment 5-15 years |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Cash and Cash Equivalents [Abstract] | |
Amortized Cost of Securities and their Estimated Fair Values | The carrying amount of securities and their estimated fair values follow: December 31, 2015 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Restricted: FHLB stock $ 4,428 — — 4,428 Available for Sale: U.S. Treasury securities $ 2,001 — (1 ) 2,000 U.S. Agency securities 91,694 1,727 (488 ) 92,933 Tax free municipal bonds 42,237 2,481 (59 ) 44,659 Taxable municipal bonds 6,190 52 (65 ) 6,177 Trust preferred securities 1,617 248 — 1,865 Mortgage-backed securities: GNMA 29,990 239 (239 ) 29,990 FNMA 28,189 266 (152 ) 28,303 FHLMC 8,113 24 (51 ) 8,086 Non- Agency CMOs 3,828 — (174 ) 3,654 AGENCY CMOs 19,570 71 (131 ) 19,510 $ 233,429 5,108 (1,360 ) 237,177 December 31, 2014 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Restricted: FHLB stock $ 4,428 — — 4,428 Available for Sale: U.S. Treasury Securities 3,977 3 — 3,980 U.S. Agency Securities $ 105,631 2,128 (527 ) 107,232 Tax free municipal bonds 57,399 3,814 (166 ) 61,047 Taxable municipal bonds 11,871 235 (63 ) 12,043 Trust preferred securities 1,600 — (111 ) 1,489 Commercial bonds 2,000 7 — 2,007 Mortgage-backed securities: GNMA 27,535 670 (122 ) 28,083 FNMA 50,617 694 (536 ) 50,775 FHLMC 3,276 38 — 3,314 Non-Agency CMOs 9,895 — (252 ) 9,643 AGENCY CMOs 28,024 176 (205 ) 27,995 $ 297,848 7,762 (1,982 ) 303,628 |
Maturities of Debt Securities Available for Sale | The scheduled maturities of debt securities available for sale at December 31, 2015, were as follows: Estimated Amortized Fair Cost Value Due within one year $ — — Due in one to five years 17,939 18,304 Due in five to ten years 42,151 42,793 Due after ten years 22,702 24,088 82,792 85,185 Amortizing agency bonds 60,947 62,449 Mortgage-backed securities 89,690 89,543 Total unrestricted securities available for sale $ 233,429 237,177 The scheduled maturities of debt securities available for sale at December 31, 2014, were as follows: Estimated Amortized Fair Cost Value Due within one year $ 4,830 4,927 Due in one to five years 21,564 21,818 Due in five to ten years 41,683 42,613 Due after ten years 33,119 35,380 101,196 104,738 Amortizing agency bonds 77,305 79,080 Mortgage-backed securities 119,347 119,810 Total unrestricted securities available for sale $ 297,848 303,628 |
Estimated Fair Value and Unrealized Loss Amounts of Impaired Investments | The estimated fair value and unrealized loss amounts of temporarily impaired investments as of December 31, 2015, are as follows: Less than 12 months 12 months or longer Total Estimated Unrealized Estimated Unrealized Estimated Unrealized Fair Value Losses Fair Value Losses Fair Value Losses Available for sale U.S. Treasury securities $ 2,000 (1 ) — — 2,000 (1 ) U.S. Agency debt securities 26,499 (203 ) 16,224 (285 ) 42,723 (488 ) Taxable municipals 2,159 (32 ) 1,887 (33 ) 4,046 (65 ) Tax free municipals — — 3,878 (59 ) 3,878 (59 ) Mortgage-backed securities: GNMA 10,840 (105 ) 11,508 (134 ) 22,348 (239 ) FNMA 11,484 (87 ) 3,036 (65 ) 14,520 (152 ) FHLMC 7,336 (51 ) — — 7,336 (51 ) Non-Agency CMOs — — 3,654 (174 ) 3,654 (174 ) AGENCY CMOs 9,781 (90 ) 1,991 (41 ) 11,772 (131 ) Total Available for Sale $ 70,099 (569 ) 42,178 (791 ) 112,277 (1,360 ) The estimated fair value and unrealized loss amounts of temporarily impaired investments as of December 31, 2014, are as follows: Less than 12 months 12 months or longer Total Estimated Unrealized Estimated Unrealized Estimated Unrealized Fair Value Losses Fair Value Losses Fair Value Losses Available for sale U.S. Agency debt securities $ 14,021 (20 ) 29,156 (507 ) 43,177 (527 ) Taxable municipals — — 4,785 (63 ) 4,785 (63 ) Tax free municipals — — 6,647 (166 ) 6,647 (166 ) Trust preferred securities — — 1,489 (111 ) 1,489 (111 ) Mortgage-backed securities: GNMA 12,568 (108 ) 2,895 (14 ) 15,463 (122 ) FNMA — — 18,927 (536 ) 18,927 (536 ) NON-AGENCY CMOs 1,923 (14 ) 7,720 (238 ) 9,643 (252 ) AGENCY CMOs 9,545 (91 ) 7,685 (114 ) 17,230 (205 ) Total Available for Sale $ 38,057 (233 ) 79,304 (1,749 ) 117,361 (1,982 ) |
Loans Receivable, Net (Tables)
Loans Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Components of Loans Receivable in Consolidated Balance Sheets | The components of loans receivable in the consolidated balance sheets as of December 31, 2015, and December 31, 2014, were as follows: December 31, 2015 December 31, 2014 Amount Percent Amount Percent Real estate loans: One-to-four family (closed end) first mortgages $ 145,999 26.0 % $ 150,551 27.6 % Second mortgages (closed end) 1,771 0.3 % 2,102 0.4 % Home equity lines of credit 33,644 6.0 % 34,238 6.3 % Multi-family 24,725 4.4 % 25,991 4.8 % Construction 34,878 6.2 % 24,241 4.4 % Land 22,453 4.0 % 26,654 4.9 % Farmland 42,246 7.5 % 42,874 7.8 % Non-residential real estate 149,711 26.6 % 150,596 27.6 % Total mortgage loans 455,427 81.0 % 457,247 83.8 % Consumer loans 20,324 3.6 % 14,438 2.6 % Commercial loans 86,743 15.4 % 74,154 13.6 % Total other loans 107,067 19.0 % 88,592 16.2 % Total loans, gross 562,494 100.0 % 545,839 100.0 % Deferred loan cost, net of fees (445 ) (286 ) Less allowance for loan losses (5,700 ) (6,289 ) Total loans $ 556,349 $ 539,264 |
Loans by Classification Type and Related Allowance Amounts | Loans by classification type and the related valuation allowance amounts at December 31, 2015, were as follows: Special Impaired Loans Specific Allowance for Pass Mention Substandard Doubtful Total Impairment Impaired One-to-four family mortgages $ 142,729 41 3,229 — 145,999 60 970 Home equity line of credit 33,475 — 169 — 33,644 — 201 Junior lien 1,720 35 16 — 1,771 — 8 Multi-family 21,644 — 3,081 — 24,725 138 89 Construction 34,878 — — — 34,878 — 377 Land 11,794 41 10,618 — 22,453 69 1,310 Non-residential real estate 138,865 2,489 8,357 — 149,711 134 1,005 Farmland 41,917 — 329 — 42,246 — 358 Consumer loans 20,123 — 201 — 20,324 49 309 Commercial loans 84,317 352 2,074 — 86,743 180 443 Total $ 531,462 2,958 28,074 — 562,494 630 5,070 Loans by classification type and the related valuation allowance amounts at December 31, 2014, were as follows: Special Impaired Loans Specific Allowance for Pass Mention Substandard Doubtful Total Impairment Impaired One-to-four family mortgages $ 146,129 203 4,219 — 150,551 51 1,147 Home equity line of credit 33,481 — 757 — 34,238 — 181 Junior lien 2,025 40 37 — 2,102 — 14 Multi-family 20,066 2,904 3,021 — 25,991 — 85 Construction 24,241 — — — 24,241 — 146 Land 15,328 362 10,964 — 26,654 663 460 Non-residential real estate 131,854 5,492 13,250 — 150,596 738 1,345 Farmland 40,121 516 2,237 — 42,874 — 461 Consumer loans 14,118 21 299 — 14,438 62 432 Commercial loans 71,246 325 2,583 — 74,154 — 504 Total $ 498,609 9,863 37,367 — 545,839 1,514 4,775 |
Impaired Loans by Classification Type | Impaired loans by classification type and the related valuation allowance amounts at December 31, 2015, were as follows: At December 31, 2015 For the year ended Recorded Unpaid Related Average Interest Impaired loans with no specific allowance One-to-four family mortgages $ 2,526 2,526 — 2,389 80 Home equity line of credit 169 169 — 457 7 Junior liens 16 16 — 17 1 Multi-family 2,128 2,128 — 2,797 126 Construction — — — — — Land 10,038 10,998 — 8,520 671 Non-residential real estate 7,640 7,640 — 283 404 Farmland 329 329 — 7,774 19 Consumer loans 5 5 — 3 — Commercial loans 1,274 1,274 — 1,599 73 Total 24,125 25,085 — 23,839 1,381 Impaired loans with a specific allowance One-to-four family mortgages $ 703 703 60 709 40 Home equity line of credit — — — — — Junior liens — — — — — Multi-family 953 953 138 318 17 Construction — — — — — Land 580 580 69 1,707 46 Non-residential real estate 717 717 134 836 28 Farmland — — — — — Consumer loans 196 196 49 194 — Commercial loans 800 800 180 514 15 Total 3,949 3,949 630 4,278 146 Total impaired loans $ 28,074 29,034 630 28,117 1,527 Impaired loans by classification type and the related valuation allowance amounts at December 31, 2014, were as follows: At December 31, 2014 For the year ended Recorded Unpaid Related Average Interest Impaired loans with no specific allowance One-to-four family mortgages $ 3,501 3,501 — 2,972 176 Home equity line of credit 757 757 — 690 35 Junior liens 37 37 — 39 2 Multi-family 3,021 3,021 — 1,342 190 Construction — — — 29 — Land 7,740 7,740 — 8,978 339 Non-residential real estate 12,057 12,057 — 8,672 669 Farmland 2,237 2,237 — 3,968 125 Consumer loans 51 51 — 36 3 Commercial loans 2,583 2,583 — 2,246 154 Total 31,984 31,984 — 28,972 1,693 Impaired loans with a specific allowance One-to-four family mortgages $ 718 718 51 1,434 44 Home equity line of credit — — — — — Junior liens — — — — — Multi-family — — — — — Construction — — — — — Land 3,224 4,737 663 3,418 160 Non-residential real estate 1,193 1,258 738 3,617 69 Farmland — — — 619 — Consumer loans 248 248 62 355 — Commercial loans — — — 100 — Total 5,383 6,961 1,514 9,543 273 Total impaired loans $ 37,367 38,945 1,514 38,515 1,966 |
Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Impairment Method | The following table presents the balance in the allowance for loan losses and the recorded investment in loans as of December 31, 2015, and December 31, 2014, by portfolio segment and based on the impairment method as of December 31, 2015, and December 31, 2014. Commercial Land Commercial Residential Consumer Total December 31, 2015: Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 180 69 272 60 49 630 Collectively evaluated for impairment 443 1,687 1,452 1,179 309 5,070 Total ending allowance balance $ 623 1,756 1,724 1,239 358 5,700 Loans: Loans individually evaluated for impairment $ 2,074 10,618 11,767 3,414 201 28,074 Loans collectively evaluated for impairment 84,669 46,713 204,915 178,000 20,123 534,420 Total ending loans balance $ 86,743 57,331 216,682 181,414 20,324 562,494 Commercial Land Commercial Residential Consumer Total December 31, 2014: Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — 663 738 51 62 1,514 Collectively evaluated for impairment 504 606 1,891 1,342 432 4,775 Total ending allowance balance $ 504 1,269 2,629 1,393 494 6,289 Loans: Loans individually evaluated for impairment $ 2,583 10,964 18,508 5,013 299 37,367 Loans collectively evaluated for impairment 71,571 39,931 200,953 181,878 14,139 508,472 Total ending loans balance $ 74,154 50,895 219,461 186,891 14,438 545,839 |
Allowance for Loan Loss Account by Loan | The following table provides a detail of the Company’s activity in the allowance for loan loss account allocated by loan type for the year ended December 31, 2015: Balance Charge Recovery General Specific Ending One-to-four family mortgages $ 1,198 (143 ) 39 (176 ) 112 1,030 Home equity line of credit 181 (92 ) 10 20 82 201 Junior liens 14 — 4 (6 ) (4 ) 8 Multi-family 85 — — 4 138 227 Construction 146 — — 231 — 377 Land 1,123 (911 ) — 850 317 1,379 Non-residential real estate 2,083 (222 ) 2 (944 ) 220 1,139 Farmland 461 — — 500 (603 ) 358 Consumer loans 494 (298 ) 118 (123 ) 167 358 Commercial loans 504 (201 ) 54 (61 ) 327 623 $ 6,289 (1,867 ) 227 295 756 5,700 The following table provides a detail of the Company’s activity in the allowance for loan loss account allocated by loan type for the year ended December 30, 2014: Balance Charge Recovery General Specific Ending One-to-four family mortgages $ 2,048 (233 ) 24 (304 ) (337 ) 1,198 Home equity line of credit 218 (83 ) 3 (37 ) 80 181 Junior liens 39 — 9 (25 ) (9 ) 14 Multi-family 466 — — (381 ) — 85 Construction 88 (139 ) 9 58 130 146 Land 1,305 — — (74 ) (108 ) 1,123 Non-residential real estate 2,719 (66 ) 864 (1,368 ) (66 ) 2,083 Farmland 510 — — 542 (591 ) 461 Consumer loans 541 (415 ) 109 (13 ) 272 494 Commercial loans 748 (296 ) 94 (244 ) 202 504 $ 8,682 (1,232 ) 1,112 (1,846 ) (427 ) 6,289 |
Non-accrual Loans | For the years ended December 31, 2015, and December 31, 2014, the components of the Company’s balances of non-accrual loans are as follows: 12/31/2015 12/31/2014 One-to-four family first mortgages $ 2,234 1,501 Home equity lines of credit 48 — Junior liens — — Multi-family 1,968 95 Land 1,553 215 Non-residential real estate 247 1,159 Farmland 166 115 Consumer loans 8 — Commercial loans 1,198 90 Total non-accrual loans $ 7,422 3,175 |
Loan Balances by Loan Classification Allocated Between Past Due Performing and Non-performing | The table below presents loan balances at December 31, 2015, by loan classification allocated between past due, classified, performing and non-performing: Currently 30 - 89 Non-accrual Special Impaired Loans Currently Performing Substandard Doubtful Total One-to-four family mortgages $ 142,058 671 2,234 41 995 — $ 145,999 Home equity line of credit 33,396 79 48 — 121 — 33,644 Junior liens 1,720 — — 35 16 — 1,771 Multi-family 21,638 6 1,968 — 1,113 — 24,725 Construction 34,878 — — — — — 34,878 Land 11,047 747 1,553 41 9,065 — 22,453 Non-residential real estate 138,637 228 247 2,489 8,110 — 149,711 Farmland 41,853 64 166 — 163 — 42,246 Consumer loans 20,108 15 8 — 193 — 20,324 Commercial loans 84,272 45 1,198 352 876 — 86,743 Total $ 529,607 1,855 7,422 2,958 20,652 — 562,494 The table below presents loan balances at December 31, 2014, by loan classification allocated between performing and non-performing: Currently 30—89 Non-accrual Special Impaired Loans Currently Performing Substandard Doubtful Total One-to-four family mortgages $ 145,372 757 1,501 203 2,718 — 150,551 Home equity line of credit 33,338 143 — — 757 — 34,238 Junior liens 2,025 — — 40 37 — 2,102 Multi-family 20,066 — 95 2,904 2,926 — 25,991 Construction 24,241 — — — — — 24,241 Land 14,674 654 215 362 10,749 — 26,654 Non-residential real estate 131,854 — 1,159 5,492 12,091 — 150,596 Farmland 40,057 64 115 516 2,122 — 42,874 Consumer loans 14,104 14 — 21 299 — 14,438 Commercial loans 71,191 55 90 325 2,493 — 74,154 Total $ 496,922 1,687 3,175 9,863 34,192 — 545,839 |
Summary of the Activity in Loans Classified as TDRs | A summary of the activity in loans classified as TDRs for the twelve month period ended December 31, 2015, is as follows: Balance at New Loss or Transferred to Loan Balance 12/31/14 TDR Foreclosure Non-accrual Amortization 12/31/15 Non-residential real estate $ 3,284 2,265 — — (13 ) $ 5,536 Total performing TDR $ 3,284 2,265 — — (13 ) $ 5,536 A summary of the activity in loans classified as TDRs for the year ended December 31, 2014, is as follows: Balance at New Loss or Transferred to Removed from (Taken to) Balance 12/31/13 TDR Foreclosure Held For Sale Non-accrual 12/31/14 Non-residential real estate $ — 10,271 — (6,987 ) — 3,284 Total performing TDR $ — 10,271 — (6,987 ) — $ 3,284 |
Summary of Loans to Officers, Directors and Their Affiliates | The following summarizes activity of loans to officers and directors and their affiliates for the years ended December 31, 2015, and December 31, 2014: 2015 2014 Balance at beginning of period 4,022 4,800 New loans 682 669 Principal repayments (860 ) (1,447 ) Balance at end of period 3,844 4,022 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Components of Premises and Equipment Included in Consolidated Balance Sheets | Components of premises and equipment included in the consolidated balance sheets as of December 31, 2015 and December 31, 2014, consisted of the following: 2015 2014 Land $ 6,579 $ 6,576 Land improvements 1,097 611 Buildings 22,405 20,914 Construction in process — 486 Furniture and equipment 6,488 6,213 36,569 34,800 Less accumulated depreciation 12,535 11,860 Premises and equipment, net $ 24,034 $ 22,940 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Amount of Other Intangible Assets and the Changes in the Carrying Amounts of Other Intangible Assets | The amount of other intangible assets and the changes in the carrying amounts of other intangible assets for the years ended December 31, 2015, 2014 and 2013: Core Deposits Intangible Balance, December 31, 2012 $ 292 Amortization (162 ) Balance December 31, 2013 130 Amortization (97 ) Balance December 31, 2014 33 Amortization (33 ) Balance, December 31, 2015 $ — |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Scheduled Maturities of Other Time Deposits | At December 31, 2015, the scheduled maturities of other time deposits were as follows: Years Ending December 31, 2016 $ 201,329 2017 60,281 2018 36,975 2019 6,441 2020 9,638 $ 314,664 |
Interest Expense on Deposits | Interest expense on deposits for the years ended December 31, 2015, December 31, 2014 and December 31, 2013 is summarized as follows: 2015 2014 2013 Interest bearing checking accounts $ 1,105 $ 1,253 $ 1,243 Money market accounts 88 86 73 Savings 103 109 79 Other time deposits 3,735 4,155 5,719 $ 5,031 $ 5,603 $ 7,114 |
Advances from Federal Home Lo40
Advances from Federal Home Loan Bank (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |
Summarized Federal Home Loan Bank Advances | Federal Home Loan Bank advances are summarized as follows: December 31, 2015 2014 Weighted Weighted Types of Advances Amount Average Rate Amount Average Rate Fixed-rate $ 15,000 2.19 % $ 34,000 0.88 % |
Scheduled Maturities of FHLB Advances | Scheduled maturities of FHLB advances as of December 31, 2015 are as follows: Years Ending Fixed Average December 31, Rate Cost 2016 $ 4,000 5.34 % 2017 5,000 0.88 % 2018 6,000 1.18 % Total $ 15,000 2.19 % |
Repurchase Agreements (Tables)
Repurchase Agreements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Cost and Maturities of the Company's Repurchase Agreements | At December 31, 2015, and December 31, 2014, the respective cost and maturities of the Company’s repurchase agreements are as follows: 2015 Third Party Balance Average Rate Maturity Comments Merrill Lynch $ 6,000 4.36 % 9/18/2016 Quarterly callable Various customers 39,770 0.61 % Overnight Total $ 45,770 1.13 % 2014 Third Party Balance Average Rate Maturity Comments Merrill Lynch $ 6,000 4.36 % 9/18/2016 Quarterly callable Various customers 51,358 0.60 % Overnight Total $ 57,358 1.42 % |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and Liabilities Measured on a Recurring Basis The assets and liabilities measured at fair value on a recurring basis are summarized below: December 31, 2015 Total carrying Quoted Prices Significant Significant Description balance sheet at Identical Assets Inputs Inputs Assets Available for sale securities $ 237,177 2,000 233,312 1,865 December 31, 2014 Total carrying Quoted Prices Significant Significant Description balance sheet at Identical Assets Inputs Inputs Assets Available for sale securities $ 303,628 3,980 298,159 1,489 Liabilities Interest rate swap $ 390 — 390 — |
Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis | The assets and liabilities measured at fair value on a non-recurring basis are summarized below: December 31, 2015 Total carrying Quoted Prices Significant Significant Description consolidated Markets for Observable Unobservable Assets Other real estate owned $ 1,736 — — 1,736 Impaired loans, net of allowance of $630 $ 3,319 — — 3,319 December 31, 2014 Total carrying Quoted Prices Significant Significant Description consolidated Markets for Observable Unobservable Assets Other real estate owned $ 1,927 — — 1,927 Impaired loans, net of allowance of $1,514 $ 3,869 — — 3,869 |
Roll-Forward of the Consolidated Condensed Statement of Financial Condition Items | The table below includes a roll-forward of the balance sheet items for the years ended December 31, 2015 and 2014, (including the change in fair value) for assets and liabilities classified by HopFed Bancorp, Inc. within level 3 of the valuation hierarchy for assets and liabilities measured at fair value on a recurring basis. When a determination is made to classify a financial instrument within level 3 of the valuation hierarchy, the determination is based upon the significance of the unobservable factors to the overall fair value measurement. However, since level 3 financial instruments typically include, in addition to the unobservable or level 3 components, observable components (that is components that are actively quoted and can be validated to external sources), the gains and losses in the table below include changes in fair value due in part to observable factors that are part of the valuation methodology. Year ended December 31, 2015 2014 Other Other Other Other Assets Liabilities Assets Liabilities Fair value, December 31, $ 1,489 — $ 1,489 — Change in unrealized gains (losses) included in other comprehensive income for assets and liabilities still held at December 31, 359 — — — Other than temporary impairment charge — — — — Recovery of prior impairment charge 17 — — — Purchases, issuances and settlements, net — — — — Transfers in and/or out of Level 3 — — — — Fair value, December 31, $ 1,865 — $ 1,489 — |
Estimated Fair Values of Financial Instruments | The estimated fair values of financial instruments were as follows at December 31, 2015: Using Quoted Prices Significant In Active Markets Other Significant Estimated for Identical Observable Unobservable Carrying Fair Assets Inputs Inputs Amount Value Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 46,926 46,926 46,926 — — Interest-earning deposits 7,772 7,772 7,772 — — Securities available for sale 237,177 237,177 2,000 233,312 1,865 Federal Home Loan Bank stock 4,428 4,428 — 4,428 — Loans held for sale 2,792 2,792 — 2,792 — Loans receivable 556,349 552,981 — — 552,981 Accrued interest receivable 4,139 4,139 — 4,139 — Financial liabilities: Deposits 739,406 724,877 — 724,877 — Advances from borrowers for taxes and insurance 614 614 — 614 — Advances from Federal Home Loan Bank 15,000 14,985 — 14,985 — Repurchase agreements 45,770 45,931 — 45,931 — Subordinated debentures 10,310 10,099 — — 10,099 Off-balance-sheet liabilities: Commitments to extend credit — — — — — Commercial letters of credit — — — — — The estimated fair values of financial instruments were as follows at December 31, 2014: Using Quoted Prices Significant In Active Markets Other Significant Estimated for Identical Observable Unobservable Carrying Fair Assets Inputs Inputs Amount Value Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 34,389 34,389 34,389 — — Interest-earning deposits 6,050 6,050 6,050 — — Securities available for sale 303,628 303,628 3,980 298,159 1,489 Federal Home Loan Bank stock 4,428 4,428 — 4,428 — Loans held for sale 1,444 1,444 — 1,444 — Loans receivable 539,264 537,493 — — 537,493 Accounts receivable 4,576 4,576 — 4,576 — Financial liabilities: Deposits 731,308 714,750 — 714,750 — Advances from borrowers for taxes and insurance 513 513 — 513 — Advances from Federal Home Loan Bank 34,000 34,217 — 34,217 — Repurchase agreements 57,358 57,688 — 57,688 — Subordinated debentures 10,310 10,099 — — 10,099 Off-balance-sheet liabilities: Commitments to extend credit — — — — — Commercial letters of credit — — — — — Market value of interest rate swap 390 390 — 390 — |
Foreclosed Assets that were Re-measured and Reported at Fair Value | The following table presents foreclosed assets that were re-measured and reported at fair value: Years Ended December 31, 2015 2014 2013 Beginning balance $ 1,927 1,674 1,548 Foreclosed assets measured at initial recognition: Carrying value of foreclosed assets prior to acquisition 986 1,816 1,535 Proceeds from sale of foreclosed assets (344 ) (1,118 ) (908 ) Charge-offs recognized in the allowance for loan loss (117 ) (237 ) (361 ) Losses included in non-interest expense (716 ) (208 ) (140 ) Fair value $ 1,736 1,927 1,674 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Summary Represents Activity Under Stock Option Plans | At December 31, 2015, all options having been granted under the 2000 Option Plan have been exercised and expired. Number of Weighted Options outstanding, December 2012 20,808 $ 16.67 Granted — — Exercised — — Forfeited — — Options outstanding, December 2013 20,808 $ 16.67 Granted — — Exercised — — Forfeited (20,808 ) $ 16.67 Options outstanding, December 2014 — — |
Compensation Expense to be Recognized | The remaining compensation expense to be recognized at December 31, 2015, is as follows: Year Ending December 31, Approximate Future 2016 $ 139 2017 52 2018 9 2019 3 Total $ 203 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Tax Expense (Benefit) | The provision for income tax expense (benefit) for the years ended December 31, 2015, December 31, 2014, and December 31, 2013, consisted of the following: 2015 2014 2013 Current Federal $ — — (32 ) State 97 30 110 97 30 78 Deferred Federal 177 (231 ) 566 State — — — 177 (231 ) 566 $ 274 (201 ) 644 |
Reconciliation of Federal Income Tax Rate | Total income tax expense for the years ended December 31, 2015, December 31, 2014, and December 31, 2013, differed from the amounts computed by applying the federal income tax rate of 34 percent to income before income taxes as follows: 2015 2014 2013 Expected federal income tax expense at statutory tax rate $ 911 679 1,498 Effect of nontaxable interest income (458 ) (542 ) (590 ) Effect of nontaxable bank owned life insurance income (114 ) (104 ) (120 ) Effect of QSCAB credit (109 ) (220 ) (220 ) State taxes on income, net of federal benefit 59 10 73 Other tax credits (80 ) (80 ) (80 ) Non deductible expenses 65 56 83 Total income tax expense $ 274 ($ 201 ) 644 Effective tax rate (benefit) 10.2 % (10.1 %) 14.6 % |
Components of Deferred Taxes | The components of deferred taxes as of December 31, 2015, and December 31, 2014, are summarized as follows: 2015 2014 Deferred tax assets: Allowance for loan loss $ 1,938 $ 2,116 Accrued expenses 377 89 Net operating loss carry forward 1,182 1,135 Tax credit carry forward 258 258 Intangible amortization 784 981 Other 267 287 Other real estate owned — 95 4,806 4,961 Deferred tax liabilities: FHLB stock dividends (787 ) (787 ) Unrealized gain on items in comprehensive income (1,275 ) (1,832 ) Depreciation and amortization (102 ) (81 ) (2,164 ) (2,700 ) Net deferred tax asset $ 2,642 $ 2,261 |
Real Estate and Other Assets 45
Real Estate and Other Assets Owned (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Company's Balance in Both Real Estate and Other Assets Owned | As of December 31, 2015, and December 31, 2014, the composition of the Company’s balance in both real estate and other assets owned are as follows: December 31, 2015 2014 One-to-four family mortgages $ 55 $ 159 Land 943 1,768 Non-residential real estate 738 — Total other assets owned $ 1,736 $ 1,927 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimal Lease and Rental Commitments | At December 31, 2015, future minimal purchase, lease and rental commitments were as follows: Years Ending December 31 2016 $ 2,352 2017 2,240 2018 1,505 2019 1,397 2020 — Total $ 7,494 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |
The Company's Consolidated Capital Ratios and the Bank's Actual Capital Amounts and Ratios | The Company’s consolidated capital ratios and the Bank’s actual capital amounts and ratios as of December 31, 2015, and December 31, 2014, are presented below: To be Well For Capital Capitalized for Adequacy Prompt Correction Actual Purchases Action Provisions Amount Ratio Amount Ratio Amount Ratio As of December 31, 2015 Tier 1 leverage capital to adjusted total assets Company $ 95,156 10.9 % $ 34,924 4.0 % $ 43,656 5.0 % Bank $ 93,328 10.7 % $ 34,840 4.0 % $ 43,550 5.0 % Total capital to risk weighted assets Company $ 100,857 17.3 % $ 46,772 8.0 % $ 58,465 10.0 % Bank $ 99,029 17.1 % $ 46,272 8.0 % $ 57,840 10.0 % Tier 1 capital to risk weighted assets Company $ 95,156 16.3 % $ 35,079 6.0 % $ 46,772 8.0 % Bank $ 93,328 16.1 % $ 34,704 6.0 % $ 46,272 8.0 % Common equity tier 1 capital to risk weighted assets Company $ 95,156 16.3 % $ 26,309 4.5 % n/a n/a Bank $ 93,328 16.1 % $ 26,028 4.5 % $ 37,596 6.5 % As of December 31, 2014 Tier 1 leverage capital to adjusted total assets Company $ 104,813 11.1 % $ 37,763 4.0 % $ 47,204 5.0 % Bank $ 102,240 11.0 % $ 37,252 4.0 % $ 46,567 5.0 % Total capital to risk weighted assets Company $ 111,102 19.1 % $ 46,662 8.0 % $ 58,327 10.0 % Bank $ 108,529 18.6 % $ 46,576 8.0 % $ 58,220 10.0 % Tier 1 capital to risk weighted assets Company $ 104,813 18.0 % $ 23,331 4.0 % n/a n/a Bank $ 102,240 17.6 % $ 23,288 4.0 % $ 34,932 6.0 % |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Assumptions for Calculating Fair Value of the Common Stock Warrants | For the purposes of these calculations, the fair value of the common stock warrants was estimated using the following assumptions: • Risk free rate 2.60 % • Expected life of warrants 10 years • Expected dividend yield 3.50 % • Expected volatility 26.5 % • Weighted average fair value $ 2.28 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Summary of Reconciliation of Weighted Average Common Shares | The following is a reconciliation of weighted average common shares for the basic and dilutive earnings per share computations: Years Ended December 31, 2015 2014 2013 Basic earnings per share: Weighted average common shares 6,919,190 7,306,078 7,483,606 Adjustment for ESOP activity (546,913 ) — — Weighted average common shares 6,372,277 7,306,078 7,483,606 Dilutive effect of stock options — — — Weighted average common and incremental shares 6,372,277 7,306,078 7,483,606 |
Investments in Affiliated Com50
Investments in Affiliated Companies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments [Member] | |
Summary of Balance Sheets | Summary Balance Sheets December. 31, December. 31, Asset – investment in subordinated debentures issued by HopFed Bancorp, Inc. $ 10,310 10,310 Liabilities $ — — Stockholders’ equity: Trust preferred securities 10,000 10,000 Common stock (100% owned by HopFed Bancorp, Inc.) 310 310 Total stockholder’s equity 10,310 10,310 Total liabilities and stockholder’s equity $ 10,310 10,310 |
Summary of Condensed Statements of Income | Summary Statements of Income Years Ended December. 31, 2015 2014 Income – interest income from subordinated debentures issued by HopFed Bancorp, Inc. $ 354 348 Net income $ 354 348 |
Summary Statements of Stockholders' Equity | Summary Statements of Stockholder’s Equity Trust Common Retained Total Beginning balances, January 1, 2015 $ 10,000 310 — 10,310 Retained earnings: Net income — — 354 354 Dividends: Trust preferred securities — — (343 ) (343 ) Common dividends paid to HopFed Bancorp, Inc. — — (11 ) (11 ) Total retained earnings — — — — Ending balances, December 31, 2015 $ 10,000 310 — 10,310 |
HopFed [Member] | |
Summary of Balance Sheets | Condensed Balance Sheets: 2015 2014 Assets: Cash and due from banks $ 2,087 2,932 Investment in subsidiary 95,804 106,088 Prepaid expenses and other assets 490 534 Total assets $ 98,381 109,554 Liabilities and equity Liabilities Unrealized loss on derivative $ — 390 Dividends payable - common 287 301 Interest payable 89 87 Other liabilities 65 64 Subordinated debentures 10,310 10,310 Total liabilities 10,751 11,152 Equity: Preferred stock — — Common stock 79 79 Additional paid-in capital 58,604 58,466 Retained earnings 47,124 45,729 Treasury stock- common stock (13,471 ) (9,429 ) Unearned ESOP shares (7,180 ) — Accumulated other comprehensive income 2,474 3,557 Total equity 87,630 98,402 Total liabilities and equity $ 98,381 109,554 |
Summary of Condensed Statements of Income | Condensed Statements of Income: 2015 2014 2013 Interest and dividend income: Dividend income from subsidiary Bank $ 12,100 2,600 5,500 Total interest and dividend income 12,100 2,600 5,500 Interest expense 740 737 733 Non-interest expenses 541 546 684 Total expenses 1,281 1,283 1,417 Income before income taxes and equity in undistributed earnings of subsidiary 10,819 1,317 4,083 Income tax benefits (529 ) (459 ) (496 ) Income before equity in undistributed earnings of subsidiary 11,348 1,776 4,579 Equity in (distribution in excess of) earnings of subsidiary (8,944 ) 423 (817 ) Income available to common shareholders $ 2,404 2,199 3,762 |
Condensed Parent Company Only51
Condensed Parent Company Only Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
HopFed [Member] | |
Summary of Condensed Statements of Cash Flows | Condensed Statements of Cash Flows: 2015 2014 2013 Cash flows from operating activities: Net income $ 2,404 2,199 3,762 Adjustments to reconcile net income to net cash (used in) provided by operating activities Equity in undistributed earnings of subsidiary 8,943 (423 ) 817 Amortization of restricted stock 190 164 115 Increase (decrease) in: Current income taxes payable 11 200 (355 ) Accrued expenses (149 ) 280 (142 ) Net cash (used in) provided by operating activities: 11,399 2,420 4,197 Cash flows for investing activities: Net cash flow used in investing activities — — — Cash flows from financing activities: Purchase of preferred stock - treasury — — — Purchase of common stock - treasury (11,926 ) (3,500 ) (853 ) Purchase of common stock warrant — — (257 ) Proceeds on ESOP loan 704 — — Dividends paid on common stock (1,022 ) (1,187 ) (751 ) Net cash (used in) provided by financing activities (12,244 ) (4,687 ) (1,861 ) Net increase (decrease) in cash (845 ) (2,267 ) 2,336 Cash and due from banks at beginning of year 2,932 5,199 2,863 Cash and due from banks at end of year $ 2,087 2,932 5,199 |
Quarterly Results of Operatio52
Quarterly Results of Operations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summarized Unaudited Quarterly Operating Results | Summarized unaudited quarterly operating results for the year ended December 31, 2015: First Second Third Fourth December 31, 2015: Interest and dividend income $ 9,195 7,919 8,012 7,996 Interest expense 1,633 1,612 1,633 1,672 Net interest income 7,562 6,307 6,379 6,324 Provision for loan losses 215 270 275 291 Net interest income after provision for loan losses 7,347 6,037 6,104 6,033 Noninterest income 1,913 1,868 1,936 1,885 Noninterest expense 7,470 8,234 7,553 7,188 Income (loss) before income taxes 1,790 (329 ) 487 730 Income tax expense (benefit) 435 (212 ) (23 ) 74 Net income (loss) $ 1,355 (117 ) 510 656 Basic earnings (loss) per share $ 0.20 (0.02 ) 0.08 0.10 Diluted earnings (loss) per share $ 0.20 (0.02 ) 0.08 0.10 Weighted average shares outstanding: Basic 6,732,456 6,425,687 6,359,556 6,328,324 Diluted 6,732,456 6,425,687 6,359,556 6,328,324 Summarized unaudited quarterly operating results for the year ended December 31, 2014: First Second Third Fourth Quarter Quarter Quarter Quarter December 31, 2014: Interest and dividend income $ 8,658 8,734 8,994 8,294 Interest expense 2,338 2,354 2,186 2,001 Net interest income 6,320 6,380 6,808 6,293 Provision for loan losses 380 (261 ) (892 ) (1,500 ) Net interest income after provision for loan losses 5,940 6,641 7,700 7,793 Noninterest income 1,598 1,945 2,393 1,904 Noninterest expense 7,324 7,447 7,563 11,582 Income (loss) before income taxes 214 1,139 2,530 (1,885 ) Income tax expense (benefit) (140 ) 214 577 (852 ) Net income (loss) $ 354 925 1,953 (1,033 ) Basic earnings (loss) per share $ 0.05 0.13 0.27 (0.14 ) Diluted earnings (loss) per share $ 0.05 0.13 0.27 (0.14 ) Weighted average shares outstanding: Basic 7,416,716 7,376,726 7,265,597 7,165,957 Diluted 7,416,716 7,376,726 7,265,597 7,165,957 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Other Comprehensive (Loss) Income Included in Stockholders' Equity | The following table sets forth the amounts of other comprehensive income (loss) included in stockholders’ equity along with the related tax effect for the years ended December 31, 2015, 2014 and 2013. Pre-Tax Tax Benefit Net of Tax Amount (Expense) Amount December 31, 2015: Unrealized holding gains (losses) on: Available for sale securities ($ 1,698 ) 577 (1,121 ) Available for sale securities – OTTI 359 (122 ) 237 Derivatives 389 (132 ) 257 Reclassification adjustments for gains on: Available for sale securities (691 ) 235 (456 ) ($ 1,641 ) 558 (1,083 ) December 31, 2014: Unrealized holding gains on: Available for sale securities $ 7,773 (2,643 ) 5,130 Derivatives 359 (122 ) 237 Reclassification adjustments for gains on: Available for sale securities (578 ) 197 (381 ) $ 7,554 (2,568 ) 4,986 December 31, 2013: Unrealized holding gains on: Available for sale securities ($ 16,012 ) 5,444 (10,568 ) Derivatives 376 (128 ) 248 Reclassification adjustments for gains on: Available for sale securities (1,661 ) 565 (1,096 ) Other than temporary impairment 400 (136 ) 264 ($ 16,897 ) 5,745 (11,152 ) |
Summary of Significant Accoun54
Summary of Significant Accounting Policies - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2008 | Dec. 31, 2015USD ($)Branch | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Accounting Policies [Line Items] | ||||
Maturity period of federal funds | 3 months | |||
Average prepayment speed period of securities to amortize premiums and accretes discount | 3 months | |||
Servicing portfolio of real estate loan | $ 22,800,000 | |||
Accrued interest receivable maximum recovery period | 90 days | |||
Number of branch offices involved in origination of loans and collection of deposits | Branch | 18 | |||
Hedging gains or losses, fair value | $ 0 | $ 0 | $ 0 | |
Maturity period of cash and cash equivalents | 90 days | |||
Interest rate to be received under swap agreement | Three-month London Interbank Lending Rate (Libor) plus 3.10% | |||
Percentage above LIBOR | 3.10% | 3.10% | ||
Cash available for dividend | $ 2,100,000 | |||
Treasury note redemption period | 10 years | |||
Core Deposits [Member] | ||||
Accounting Policies [Line Items] | ||||
Intangible assets useful lives | 9 years |
Summary of Significant Accoun55
Summary of Significant Accounting Policies - Schedule of Useful Life of Property, Plant and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives of property, plant and equipment | 40 years |
Minimum [Member] | Land Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives of property, plant and equipment | 5 years |
Minimum [Member] | Furniture and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives of property, plant and equipment | 5 years |
Maximum [Member] | Land Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives of property, plant and equipment | 15 years |
Maximum [Member] | Furniture and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives of property, plant and equipment | 15 years |
Securities - Amortized Cost of
Securities - Amortized Cost of Securities and their Estimated Fair Values (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
FHLB stock | $ 4,428 | $ 4,428 |
FHLB stock | 4,428 | 4,428 |
Amortized Cost | 233,429 | 297,848 |
Gross Unrealized Gains | 5,108 | 7,762 |
Gross Unrealized Losses | (1,360) | (1,982) |
Estimated Fair Value | 237,177 | 303,628 |
Estimated Fair Value, Less than 12 months | 70,099 | 38,057 |
Unrealized Losses, Less than 12 months | (569) | (233) |
Estimated Fair Value, 12 months or longer | 42,178 | 79,304 |
Unrealized Losses, 12 months or longer | (791) | (1,749) |
Estimated Fair Value | 112,277 | 117,361 |
Unrealized Losses | (1,360) | (1,982) |
U.S. Treasury Securities [Member] | U.S. Agency Securities [Member] | Temporarily Impaired Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 months | 2,000 | |
Unrealized Losses, Less than 12 months | (1) | |
Estimated Fair Value | 2,000 | |
Unrealized Losses | (1) | |
U.S. Treasury Securities [Member] | Available for Sale Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,001 | 3,977 |
Gross Unrealized Gains | 3 | |
Gross Unrealized Losses | (1) | |
Estimated Fair Value | 2,000 | 3,980 |
U.S. Agency Debt Securities [Member] | U.S. Agency Securities [Member] | Temporarily Impaired Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 months | 26,499 | 14,021 |
Unrealized Losses, Less than 12 months | (203) | (20) |
Estimated Fair Value, 12 months or longer | 16,224 | 29,156 |
Unrealized Losses, 12 months or longer | (285) | (507) |
Estimated Fair Value | 42,723 | 43,177 |
Unrealized Losses | (488) | (527) |
U.S. Agency Debt Securities [Member] | Available for Sale Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 91,694 | 105,631 |
Gross Unrealized Gains | 1,727 | 2,128 |
Gross Unrealized Losses | (488) | (527) |
Estimated Fair Value | 92,933 | 107,232 |
Tax Free Municipals Bonds [Member] | U.S. Agency Securities [Member] | Temporarily Impaired Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, 12 months or longer | 3,878 | 6,647 |
Unrealized Losses, 12 months or longer | (59) | (166) |
Estimated Fair Value | 3,878 | 6,647 |
Unrealized Losses | (59) | (166) |
Tax Free Municipals Bonds [Member] | Available for Sale Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 42,237 | 57,399 |
Gross Unrealized Gains | 2,481 | 3,814 |
Gross Unrealized Losses | (59) | (166) |
Estimated Fair Value | 44,659 | 61,047 |
Taxable Municipals Bonds [Member] | U.S. Agency Securities [Member] | Temporarily Impaired Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 months | 2,159 | |
Unrealized Losses, Less than 12 months | (32) | |
Estimated Fair Value, 12 months or longer | 1,887 | 4,785 |
Unrealized Losses, 12 months or longer | (33) | (63) |
Estimated Fair Value | 4,046 | 4,785 |
Unrealized Losses | (65) | (63) |
Taxable Municipals Bonds [Member] | Available for Sale Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 6,190 | 11,871 |
Gross Unrealized Gains | 52 | 235 |
Gross Unrealized Losses | (65) | (63) |
Estimated Fair Value | 6,177 | 12,043 |
Trust Preferred Securities [Member] | U.S. Agency Securities [Member] | Temporarily Impaired Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, 12 months or longer | 1,489 | |
Unrealized Losses, 12 months or longer | (111) | |
Estimated Fair Value | 1,489 | |
Unrealized Losses | (111) | |
Trust Preferred Securities [Member] | Available for Sale Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,617 | 1,600 |
Gross Unrealized Gains | 248 | |
Gross Unrealized Losses | (111) | |
Estimated Fair Value | 1,865 | 1,489 |
GNMA [Member] | Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 29,990 | 27,535 |
Gross Unrealized Gains | 239 | 670 |
Gross Unrealized Losses | (239) | (122) |
Estimated Fair Value | 29,990 | 28,083 |
GNMA [Member] | Mortgage-Backed Securities [Member] | Temporarily Impaired Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 months | 10,840 | 12,568 |
Unrealized Losses, Less than 12 months | (105) | (108) |
Estimated Fair Value, 12 months or longer | 11,508 | 2,895 |
Unrealized Losses, 12 months or longer | (134) | (14) |
Estimated Fair Value | 22,348 | 15,463 |
Unrealized Losses | (239) | (122) |
FNMA [Member] | Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 28,189 | 50,617 |
Gross Unrealized Gains | 266 | 694 |
Gross Unrealized Losses | (152) | (536) |
Estimated Fair Value | 28,303 | 50,775 |
FNMA [Member] | Mortgage-Backed Securities [Member] | Temporarily Impaired Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 months | 11,484 | |
Unrealized Losses, Less than 12 months | (87) | |
Estimated Fair Value, 12 months or longer | 3,036 | 18,927 |
Unrealized Losses, 12 months or longer | (65) | (536) |
Estimated Fair Value | 14,520 | 18,927 |
Unrealized Losses | (152) | (536) |
FHLMC [Member] | Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 8,113 | 3,276 |
Gross Unrealized Gains | 24 | 38 |
Gross Unrealized Losses | (51) | |
Estimated Fair Value | 8,086 | 3,314 |
FHLMC [Member] | Mortgage-Backed Securities [Member] | Temporarily Impaired Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 months | 7,336 | |
Unrealized Losses, Less than 12 months | (51) | |
Estimated Fair Value | 7,336 | |
Unrealized Losses | (51) | |
Non-Agency CMOs [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 9,895 | |
Gross Unrealized Losses | (252) | |
Estimated Fair Value | 9,643 | |
Non-Agency CMOs [Member] | Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 3,828 | |
Gross Unrealized Losses | (174) | |
Estimated Fair Value | 3,654 | |
Non-Agency CMOs [Member] | Mortgage-Backed Securities [Member] | Temporarily Impaired Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 months | 1,923 | |
Unrealized Losses, Less than 12 months | (14) | |
Estimated Fair Value, 12 months or longer | 3,654 | 7,720 |
Unrealized Losses, 12 months or longer | (174) | (238) |
Estimated Fair Value | 3,654 | 9,643 |
Unrealized Losses | (174) | (252) |
Agency CMO [Member] | Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 19,570 | 28,024 |
Gross Unrealized Gains | 71 | 176 |
Gross Unrealized Losses | (131) | (205) |
Estimated Fair Value | 19,510 | 27,995 |
Agency CMO [Member] | Mortgage-Backed Securities [Member] | Temporarily Impaired Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value, Less than 12 months | 9,781 | 9,545 |
Unrealized Losses, Less than 12 months | (90) | (91) |
Estimated Fair Value, 12 months or longer | 1,991 | 7,685 |
Unrealized Losses, 12 months or longer | (41) | (114) |
Estimated Fair Value | 11,772 | 17,230 |
Unrealized Losses | $ (131) | (205) |
Commercial Bonds [Member] | Available for Sale Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,000 | |
Gross Unrealized Gains | 7 | |
Estimated Fair Value | $ 2,007 |
Securities - Maturities of Debt
Securities - Maturities of Debt Securities Available for Sale (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost of debt securities available for sale, due within one year | $ 4,830 | |
Amortized cost of debt securities available for sale, due in one to five years | $ 17,939 | 21,564 |
Amortized cost of debt securities available for sale, due in five to ten years | 42,151 | 41,683 |
Amortized cost of debt securities available for sale, due after ten years | 22,702 | 33,119 |
Total amortized cost debt securities available for sale with specific maturities | 82,792 | 101,196 |
Amortized Cost | 233,429 | 297,848 |
Estimated fair value of debt securities available for sale, due within one year | 4,927 | |
Estimated fair value of debt securities available for sale, due in one to five years | 18,304 | 21,818 |
Estimated fair value of debt securities available for sale, due in five to ten years | 42,793 | 42,613 |
Estimated fair value of debt securities available for sale, due after ten years | 24,088 | 35,380 |
Total estimated fair value of debt securities available for sale with specific maturities | 85,185 | 104,738 |
Total unrestricted securities available for sale at estimated fair value | 237,177 | 303,628 |
Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total amortized cost of debt securities available for sale without specific maturities | 89,690 | 119,347 |
Total estimated fair value of debt securities available for sale without specific maturities | 89,543 | 119,810 |
Amortizing Agency Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total amortized cost of debt securities available for sale without specific maturities | 60,947 | 77,305 |
Total estimated fair value of debt securities available for sale without specific maturities | $ 62,449 | $ 79,080 |
Securities - Additional Informa
Securities - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | |||||
Jan. 31, 2015USD ($) | Sep. 30, 2013USD ($) | Oct. 31, 2010 | Jun. 30, 2008USD ($) | Dec. 31, 2015USD ($)Securities | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | |||||||
Number of securities with unrealized losses | Securities | 71 | ||||||
Investment par value | $ 2,000,000 | ||||||
Investment interest percentage | 8.00% | ||||||
Dividend payment period | 5 years | ||||||
Impairment charges | $ 400,000 | $ 400,000 | |||||
Accretion of impairment charge back into income per quarter | $ 4,200 | $ (17,000) | $ 400,000 | ||||
Available for sale for proceeds | 84,900,000 | $ 75,300,000 | 68,500,000 | ||||
Gross gains in available for sale for proceeds | 1,274,000 | 788,000 | 1,700,000 | ||||
Gross loss in available for sale for proceeds | 583,000 | $ 210,000 | $ 33,000 | ||||
Securities pledged to municipalities for deposits in excess of FDIC limits, book value | 135,900,000 | ||||||
Securities pledged to municipalities for deposits in excess of FDIC limits, market value | 140,300,000 | ||||||
Letter of credit issued by FHLB | $ 32,500,000 | ||||||
FFKY [Member] | |||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
Period of deferring dividend payments | 5 years | ||||||
Subordinated Debt [Member] | |||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
Total risk based capital ratio | 30 years |
Loans Receivable, Net - Compone
Loans Receivable, Net - Components of Loans Receivable in Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Real estate loans | ||
Total loans, gross | $ 562,494 | $ 545,839 |
Deferred loan cost, net of fees | (445) | (286) |
Less allowance for loan losses | (5,700) | (6,289) |
Total loans | $ 556,349 | $ 539,264 |
Loans and Leases Receivable in Percentage | 100.00% | 100.00% |
Land [Member] | ||
Real estate loans | ||
Total loans, gross | $ 22,453 | $ 26,654 |
Multi-Family [Member] | ||
Real estate loans | ||
Total loans, gross | 24,725 | 25,991 |
Real Estate Loans [Member] | ||
Real estate loans | ||
Total loans, gross | $ 455,427 | $ 457,247 |
Loans and Leases Receivable in Percentage | 81.00% | 83.80% |
Real Estate Loans [Member] | Land [Member] | ||
Real estate loans | ||
Total loans, gross | $ 22,453 | $ 26,654 |
Loans and Leases Receivable in Percentage | 4.00% | 4.90% |
Real Estate Loans [Member] | Multi-Family [Member] | ||
Real estate loans | ||
Total loans, gross | $ 24,725 | $ 25,991 |
Loans and Leases Receivable in Percentage | 4.40% | 4.80% |
Consumer Loans [Member] | ||
Real estate loans | ||
Total loans, gross | $ 20,324 | $ 14,438 |
Less allowance for loan losses | $ (358) | $ (494) |
Loans and Leases Receivable in Percentage | 3.60% | 2.60% |
Commercial Loans [Member] | ||
Real estate loans | ||
Total loans, gross | $ 86,743 | $ 74,154 |
Less allowance for loan losses | $ (623) | $ (504) |
Loans and Leases Receivable in Percentage | 15.40% | 13.60% |
Total Other Loans [Member] | ||
Real estate loans | ||
Total loans, gross | $ 107,067 | $ 88,592 |
Loans and Leases Receivable in Percentage | 19.00% | 16.20% |
One-to-Four Family Mortgages [Member] | ||
Real estate loans | ||
Total loans, gross | $ 145,999 | $ 150,551 |
One-to-Four Family Mortgages [Member] | Real Estate Loans [Member] | ||
Real estate loans | ||
Total loans, gross | $ 145,999 | $ 150,551 |
Loans and Leases Receivable in Percentage | 26.00% | 27.60% |
Home Equity Line of Credit [Member] | ||
Real estate loans | ||
Total loans, gross | $ 33,644 | $ 34,238 |
Home Equity Line of Credit [Member] | Real Estate Loans [Member] | ||
Real estate loans | ||
Total loans, gross | $ 33,644 | $ 34,238 |
Loans and Leases Receivable in Percentage | 6.00% | 6.30% |
Construction [Member] | ||
Real estate loans | ||
Total loans, gross | $ 34,878 | $ 24,241 |
Construction [Member] | Real Estate Loans [Member] | ||
Real estate loans | ||
Total loans, gross | $ 34,878 | $ 24,241 |
Loans and Leases Receivable in Percentage | 6.20% | 4.40% |
Farmland [Member] | ||
Real estate loans | ||
Total loans, gross | $ 42,246 | $ 42,874 |
Farmland [Member] | Real Estate Loans [Member] | ||
Real estate loans | ||
Total loans, gross | $ 42,246 | $ 42,874 |
Loans and Leases Receivable in Percentage | 7.50% | 7.80% |
Non-Residential Real Estate [Member] | ||
Real estate loans | ||
Total loans, gross | $ 149,711 | $ 150,596 |
Non-Residential Real Estate [Member] | Real Estate Loans [Member] | ||
Real estate loans | ||
Total loans, gross | $ 149,711 | $ 150,596 |
Loans and Leases Receivable in Percentage | 26.60% | 27.60% |
Second Mortgages (Closed End) [Member] | Real Estate Loans [Member] | ||
Real estate loans | ||
Total loans, gross | $ 1,771 | $ 2,102 |
Loans and Leases Receivable in Percentage | 0.30% | 0.40% |
Loans Receivable, Net - Additio
Loans Receivable, Net - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2015USD ($)Loans | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Mortgage loans service for benefit of others | $ 36,900,000 | $ 30,400,000 | $ 32,600,000 |
Annual reviews of loan to ascertain the borrowers continued ability to service | 1,000,000 | ||
Average recorded investment in impaired loans | 28,117,000 | 38,515,000 | 43,100,000 |
Interest income recognized on impaired loans | 1,527,000 | 1,966,000 | 859,000 |
Non-accrual Loans | 7,422,000 | 3,175,000 | |
Interest income foregone on non accrual loans | 337,000 | 76,000 | 432,000 |
Past due 90 days still accruing | $ 0 | 0 | |
Number of TDR loan relationship | Loans | 2 | ||
Number of performing TDR | Loans | 8 | ||
Loan relationship balance | $ 5,536,000 | 3,284,000 | |
Number of new TDRs | Loans | 6 | ||
New TDR loan balance | $ 2,265,000 | 10,271,000 | |
Loans to officers and directors | 3,844,000 | 4,022,000 | $ 4,800,000 |
Funds undisbursed to officers and directors | 493,000 | ||
First Tdr Relationship [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loan relationship balance | 3,300,000 | ||
Second Tdr Relationship [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
New TDR loan balance | 2,200,000 | ||
Freddie Mac [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Mortgage loans service for benefit of Freddie Mac | 22,800,000 | ||
Officers and Directors [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans to officers and directors | 3,800,000 | $ 4,000,000 | |
Owner Occupied Properties [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Secured non-residential real estate loans | 82,300,000 | ||
Non Owner Occupied Properties [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Secured non-residential real estate loans | $ 67,400,000 |
Loans Receivable, Net - Loans b
Loans Receivable, Net - Loans by Classification Type and Related Allowance Amounts (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | $ 562,494 | $ 545,839 |
Specific Allowance for Impairment | 630 | 1,514 |
Allowance for Performing Loans | 5,070 | 4,775 |
Land [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 22,453 | 26,654 |
Specific Allowance for Impairment | 69 | 663 |
Allowance for Performing Loans | 1,310 | 460 |
Multi-Family [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 24,725 | 25,991 |
Specific Allowance for Impairment | 138 | |
Allowance for Performing Loans | 89 | 85 |
One-to-Four Family Mortgages [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 145,999 | 150,551 |
Specific Allowance for Impairment | 60 | 51 |
Allowance for Performing Loans | 970 | 1,147 |
Home Equity Line of Credit [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 33,644 | 34,238 |
Allowance for Performing Loans | 201 | 181 |
Junior Liens [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 1,771 | 2,102 |
Allowance for Performing Loans | 8 | 14 |
Construction [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 34,878 | 24,241 |
Allowance for Performing Loans | 377 | 146 |
Non-Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 149,711 | 150,596 |
Specific Allowance for Impairment | 134 | 738 |
Allowance for Performing Loans | 1,005 | 1,345 |
Farmland [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 42,246 | 42,874 |
Allowance for Performing Loans | 358 | 461 |
Consumer Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 20,324 | 14,438 |
Specific Allowance for Impairment | 49 | 62 |
Allowance for Performing Loans | 309 | 432 |
Commercial Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 86,743 | 74,154 |
Specific Allowance for Impairment | 180 | |
Allowance for Performing Loans | 443 | 504 |
Pass [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 531,462 | 498,609 |
Pass [Member] | Land [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 11,794 | 15,328 |
Pass [Member] | Multi-Family [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 21,644 | 20,066 |
Pass [Member] | One-to-Four Family Mortgages [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 142,729 | 146,129 |
Pass [Member] | Home Equity Line of Credit [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 33,475 | 33,481 |
Pass [Member] | Junior Liens [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 1,720 | 2,025 |
Pass [Member] | Construction [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 34,878 | 24,241 |
Pass [Member] | Non-Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 138,865 | 131,854 |
Pass [Member] | Farmland [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 41,917 | 40,121 |
Pass [Member] | Consumer Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 20,123 | 14,118 |
Pass [Member] | Commercial Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 84,317 | 71,246 |
Special Mention [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 2,958 | 9,863 |
Special Mention [Member] | Land [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 41 | 362 |
Special Mention [Member] | Multi-Family [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 2,904 | |
Special Mention [Member] | One-to-Four Family Mortgages [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 41 | 203 |
Special Mention [Member] | Junior Liens [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 35 | 40 |
Special Mention [Member] | Non-Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 2,489 | 5,492 |
Special Mention [Member] | Farmland [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 516 | |
Special Mention [Member] | Consumer Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 21 | |
Special Mention [Member] | Commercial Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 352 | 325 |
Impaired Loans Substandard [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 28,074 | 37,367 |
Impaired Loans Substandard [Member] | Land [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 10,618 | 10,964 |
Impaired Loans Substandard [Member] | Multi-Family [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 3,081 | 3,021 |
Impaired Loans Substandard [Member] | One-to-Four Family Mortgages [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 3,229 | 4,219 |
Impaired Loans Substandard [Member] | Home Equity Line of Credit [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 169 | 757 |
Impaired Loans Substandard [Member] | Junior Liens [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 16 | 37 |
Impaired Loans Substandard [Member] | Non-Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 8,357 | 13,250 |
Impaired Loans Substandard [Member] | Farmland [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 329 | 2,237 |
Impaired Loans Substandard [Member] | Consumer Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | 201 | 299 |
Impaired Loans Substandard [Member] | Commercial Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total | $ 2,074 | $ 2,583 |
Loans Receivable, Net - Impaire
Loans Receivable, Net - Impaired Loans by Classification Type (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | $ 24,125,000 | $ 31,984,000 | |
Total impaired loans Recorded Investment | 28,074,000 | 37,367,000 | |
Unpaid Principal Balance | 25,085,000 | 31,984,000 | |
Total impaired loans Unpaid Principal Balance | 29,034,000 | 38,945,000 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 23,839,000 | 28,972,000 | |
Interest Income Recognized | 1,381,000 | 1,693,000 | |
Recorded Investment | 3,949,000 | 5,383,000 | |
Unpaid Principal Balance | 3,949,000 | 6,961,000 | |
Related Allowance | 630,000 | 1,514,000 | |
Average Recorded Investment | 4,278,000 | 9,543,000 | |
Total impaired loans Average Recorded Investment | 28,117,000 | 38,515,000 | $ 43,100,000 |
Interest Income Recognized | 146,000 | 273,000 | |
Total impaired loans Interest Income Recognized | 1,527,000 | 1,966,000 | $ 859,000 |
Land [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 10,038,000 | 7,740,000 | |
Unpaid Principal Balance | 10,998,000 | 7,740,000 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 8,520,000 | 8,978,000 | |
Interest Income Recognized | 671,000 | 339,000 | |
Recorded Investment | 580,000 | 3,224,000 | |
Unpaid Principal Balance | 580,000 | 4,737,000 | |
Related Allowance | 69,000 | 663,000 | |
Average Recorded Investment | 1,707,000 | 3,418,000 | |
Interest Income Recognized | 46,000 | 160,000 | |
Multi-Family [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 2,128,000 | 3,021,000 | |
Unpaid Principal Balance | 2,128,000 | 3,021,000 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 2,797,000 | 1,342,000 | |
Interest Income Recognized | 126,000 | 190,000 | |
Recorded Investment | 953,000 | ||
Unpaid Principal Balance | 953,000 | ||
Related Allowance | 138,000 | ||
Average Recorded Investment | 318,000 | ||
Interest Income Recognized | 17,000 | ||
One-to-Four Family Mortgages [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 2,526,000 | 3,501,000 | |
Unpaid Principal Balance | 2,526,000 | 3,501,000 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 2,389,000 | 2,972,000 | |
Interest Income Recognized | 80,000 | 176,000 | |
Recorded Investment | 703,000 | 718,000 | |
Unpaid Principal Balance | 703,000 | 718,000 | |
Related Allowance | 60,000 | 51,000 | |
Average Recorded Investment | 709,000 | 1,434,000 | |
Interest Income Recognized | 40,000 | 44,000 | |
Home Equity Line of Credit [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 169,000 | 757,000 | |
Unpaid Principal Balance | 169,000 | 757,000 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 457,000 | 690,000 | |
Interest Income Recognized | 7,000 | 35,000 | |
Junior Liens [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 16,000 | 37,000 | |
Unpaid Principal Balance | 16,000 | 37,000 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 17,000 | 39,000 | |
Interest Income Recognized | 1,000 | 2,000 | |
Construction [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Related Allowance | 0 | 0 | |
Average Recorded Investment | 29,000 | ||
Non-Residential Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 7,640,000 | 12,057,000 | |
Unpaid Principal Balance | 7,640,000 | 12,057,000 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 283,000 | 8,672,000 | |
Interest Income Recognized | 404,000 | 669,000 | |
Recorded Investment | 717,000 | 1,193,000 | |
Unpaid Principal Balance | 717,000 | 1,258,000 | |
Related Allowance | 134,000 | 738,000 | |
Average Recorded Investment | 836,000 | 3,617,000 | |
Interest Income Recognized | 28,000 | 69,000 | |
Farmland [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 329,000 | 2,237,000 | |
Unpaid Principal Balance | 329,000 | 2,237,000 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 7,774,000 | 3,968,000 | |
Interest Income Recognized | 19,000 | 125,000 | |
Average Recorded Investment | 619,000 | ||
Consumer Loans [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 5,000 | 51,000 | |
Unpaid Principal Balance | 5,000 | 51,000 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 3,000 | 36,000 | |
Interest Income Recognized | 3,000 | ||
Recorded Investment | 196,000 | 248,000 | |
Unpaid Principal Balance | 196,000 | 248,000 | |
Related Allowance | 49,000 | 62,000 | |
Average Recorded Investment | 194,000 | 355,000 | |
Commercial Loans [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 1,274,000 | 2,583,000 | |
Unpaid Principal Balance | 1,274,000 | 2,583,000 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 1,599,000 | 2,246,000 | |
Interest Income Recognized | 73,000 | 154,000 | |
Recorded Investment | 800,000 | ||
Unpaid Principal Balance | 800,000 | ||
Related Allowance | 180,000 | ||
Average Recorded Investment | 514,000 | $ 100,000 | |
Interest Income Recognized | $ 15,000 |
Loans Receivable, Net - Allowan
Loans Receivable, Net - Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Impairment Method (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | $ 630 | $ 1,514 |
Collectively evaluated for impairment | 5,070 | 4,775 |
Total ending allowance balance | 5,700 | 6,289 |
Loans individually evaluated for impairment | 28,074 | 37,367 |
Loans collectively evaluated for impairment | 534,420 | 508,472 |
Total ending loans balance | 562,494 | 545,839 |
Commercial Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 180 | |
Collectively evaluated for impairment | 443 | 504 |
Total ending allowance balance | 623 | 504 |
Loans individually evaluated for impairment | 2,074 | 2,583 |
Loans collectively evaluated for impairment | 84,669 | 71,571 |
Total ending loans balance | 86,743 | 74,154 |
Land Development/Construction [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 69 | 663 |
Collectively evaluated for impairment | 1,687 | 606 |
Total ending allowance balance | 1,756 | 1,269 |
Loans individually evaluated for impairment | 10,618 | 10,964 |
Loans collectively evaluated for impairment | 46,713 | 39,931 |
Total ending loans balance | 57,331 | 50,895 |
Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 272 | 738 |
Collectively evaluated for impairment | 1,452 | 1,891 |
Total ending allowance balance | 1,724 | 2,629 |
Loans individually evaluated for impairment | 11,767 | 18,508 |
Loans collectively evaluated for impairment | 204,915 | 200,953 |
Total ending loans balance | 216,682 | 219,461 |
Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 60 | 51 |
Collectively evaluated for impairment | 1,179 | 1,342 |
Total ending allowance balance | 1,239 | 1,393 |
Loans individually evaluated for impairment | 3,414 | 5,013 |
Loans collectively evaluated for impairment | 178,000 | 181,878 |
Total ending loans balance | 181,414 | 186,891 |
Consumer Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 49 | 62 |
Collectively evaluated for impairment | 309 | 432 |
Total ending allowance balance | 358 | 494 |
Loans individually evaluated for impairment | 201 | 299 |
Loans collectively evaluated for impairment | 20,123 | 14,139 |
Total ending loans balance | $ 20,324 | $ 14,438 |
Loans Receivable, Net - Allow64
Loans Receivable, Net - Allowance for Loan Loss Account by Loan (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | $ 6,289 | $ 8,682 | |
Charge off | (1,867) | (1,232) | $ (4,444) |
Recovery | 227 | 1,112 | |
General Provision | 295 | (1,846) | |
Specific Provision | 756 | (427) | |
Ending balance | 5,700 | 6,289 | 8,682 |
Land [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | 1,123 | 1,305 | |
Charge off | (911) | ||
General Provision | 850 | (74) | |
Specific Provision | 317 | (108) | |
Ending balance | 1,379 | 1,123 | 1,305 |
Multi-Family [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | 85 | 466 | |
General Provision | 4 | (381) | |
Specific Provision | 138 | ||
Ending balance | 227 | 85 | 466 |
One-to-Four Family Mortgages [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | 1,198 | 2,048 | |
Charge off | (143) | (233) | |
Recovery | 39 | 24 | |
General Provision | (176) | (304) | |
Specific Provision | 112 | (337) | |
Ending balance | 1,030 | 1,198 | 2,048 |
Home Equity Line of Credit [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | 181 | 218 | |
Charge off | (92) | (83) | |
Recovery | 10 | 3 | |
General Provision | 20 | (37) | |
Specific Provision | 82 | 80 | |
Ending balance | 201 | 181 | 218 |
Junior Liens [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | 14 | 39 | |
Recovery | 4 | 9 | |
General Provision | (6) | (25) | |
Specific Provision | (4) | (9) | |
Ending balance | 8 | 14 | 39 |
Construction [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | 146 | 88 | |
Charge off | (139) | ||
Recovery | 9 | ||
General Provision | 231 | 58 | |
Specific Provision | 130 | ||
Ending balance | 377 | 146 | 88 |
Non-Residential Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | 2,083 | 2,719 | |
Charge off | (222) | (66) | |
Recovery | 2 | 864 | |
General Provision | (944) | (1,368) | |
Specific Provision | 220 | (66) | |
Ending balance | 1,139 | 2,083 | 2,719 |
Farmland [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | 461 | 510 | |
General Provision | 500 | 542 | |
Specific Provision | (603) | (591) | |
Ending balance | 358 | 461 | 510 |
Consumer Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | 494 | 541 | |
Charge off | (298) | (415) | |
Recovery | 118 | 109 | |
General Provision | (123) | (13) | |
Specific Provision | 167 | 272 | |
Ending balance | 358 | 494 | 541 |
Commercial Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning balance | 504 | 748 | |
Charge off | (201) | (296) | |
Recovery | 54 | 94 | |
General Provision | (61) | (244) | |
Specific Provision | 327 | 202 | |
Ending balance | $ 623 | $ 504 | $ 748 |
Loans Receivable, Net - Non-Acc
Loans Receivable, Net - Non-Accrual Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total non-accrual loans | $ 7,422 | $ 3,175 |
Land [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total non-accrual loans | 1,553 | 215 |
Multi-Family [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total non-accrual loans | 1,968 | 95 |
One-to-Four Family Mortgages [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total non-accrual loans | 2,234 | 1,501 |
Home Equity Line of Credit [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total non-accrual loans | 48 | |
Non-Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total non-accrual loans | 247 | 1,159 |
Farmland [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total non-accrual loans | 166 | 115 |
Consumer Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total non-accrual loans | 8 | |
Commercial Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total non-accrual loans | $ 1,198 | $ 90 |
Loans Receivable, Net- Loan Bal
Loans Receivable, Net- Loan Balances by Loan Classification Allocated Between Past Due Performing and Non-performing (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Currently Performing | $ 529,607 | $ 496,922 |
30 - 89 Days Past Due | 1,855 | 1,687 |
Non-accrual Loans | 7,422 | 3,175 |
Special Mention | 2,958 | 9,863 |
Impaired Loans Currently Performing Substandard | 20,652 | 34,192 |
Impaired Loans Currently Performing Doubtful | 0 | 0 |
Total loans, gross | 562,494 | 545,839 |
Land [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Currently Performing | 11,047 | 14,674 |
30 - 89 Days Past Due | 747 | 654 |
Non-accrual Loans | 1,553 | 215 |
Special Mention | 41 | 362 |
Impaired Loans Currently Performing Substandard | 9,065 | 10,749 |
Impaired Loans Currently Performing Doubtful | 0 | 0 |
Total loans, gross | 22,453 | 26,654 |
Multi-Family [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Currently Performing | 21,638 | 20,066 |
30 - 89 Days Past Due | 6 | |
Non-accrual Loans | 1,968 | 95 |
Special Mention | 2,904 | |
Impaired Loans Currently Performing Substandard | 1,113 | 2,926 |
Impaired Loans Currently Performing Doubtful | 0 | 0 |
Total loans, gross | 24,725 | 25,991 |
One-to-Four Family Mortgages [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Currently Performing | 142,058 | 145,372 |
30 - 89 Days Past Due | 671 | 757 |
Non-accrual Loans | 2,234 | 1,501 |
Special Mention | 41 | 203 |
Impaired Loans Currently Performing Substandard | 995 | 2,718 |
Impaired Loans Currently Performing Doubtful | 0 | 0 |
Total loans, gross | 145,999 | 150,551 |
Home Equity Line of Credit [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Currently Performing | 33,396 | 33,338 |
30 - 89 Days Past Due | 79 | 143 |
Non-accrual Loans | 48 | |
Impaired Loans Currently Performing Substandard | 121 | 757 |
Impaired Loans Currently Performing Doubtful | 0 | 0 |
Total loans, gross | 33,644 | 34,238 |
Junior Liens [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Currently Performing | 1,720 | 2,025 |
Special Mention | 35 | 40 |
Impaired Loans Currently Performing Substandard | 16 | 37 |
Impaired Loans Currently Performing Doubtful | 0 | 0 |
Total loans, gross | 1,771 | 2,102 |
Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Currently Performing | 34,878 | 24,241 |
Impaired Loans Currently Performing Doubtful | 0 | 0 |
Total loans, gross | 34,878 | 24,241 |
Non-Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Currently Performing | 138,637 | 131,854 |
30 - 89 Days Past Due | 228 | |
Non-accrual Loans | 247 | 1,159 |
Special Mention | 2,489 | 5,492 |
Impaired Loans Currently Performing Substandard | 8,110 | 12,091 |
Impaired Loans Currently Performing Doubtful | 0 | 0 |
Total loans, gross | 149,711 | 150,596 |
Farmland [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Currently Performing | 41,853 | 40,057 |
30 - 89 Days Past Due | 64 | 64 |
Non-accrual Loans | 166 | 115 |
Special Mention | 516 | |
Impaired Loans Currently Performing Substandard | 163 | 2,122 |
Impaired Loans Currently Performing Doubtful | 0 | 0 |
Total loans, gross | 42,246 | 42,874 |
Consumer Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Currently Performing | 20,108 | 14,104 |
30 - 89 Days Past Due | 15 | 14 |
Non-accrual Loans | 8 | |
Special Mention | 21 | |
Impaired Loans Currently Performing Substandard | 193 | 299 |
Impaired Loans Currently Performing Doubtful | 0 | 0 |
Total loans, gross | 20,324 | 14,438 |
Commercial Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Currently Performing | 84,272 | 71,191 |
30 - 89 Days Past Due | 45 | 55 |
Non-accrual Loans | 1,198 | 90 |
Special Mention | 352 | 325 |
Impaired Loans Currently Performing Substandard | 876 | 2,493 |
Impaired Loans Currently Performing Doubtful | 0 | 0 |
Total loans, gross | $ 86,743 | $ 74,154 |
Loans Receivable, Net - Summary
Loans Receivable, Net - Summary of the Activity in Loans Classified as TDRs (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Modifications [Line Items] | ||
Beginning Balance | $ 3,284 | |
New TDR | 2,265 | $ 10,271 |
Loss or Foreclosure | 0 | 0 |
Transferred to Non-accrual | 0 | |
Transferred to Held For Sale | (6,987) | |
Loan Amortization | (13) | |
Removed from (Taken to) Non-accrual | 0 | |
Ending Balance | 5,536 | 3,284 |
Non-Residential Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Beginning Balance | 3,284 | |
New TDR | 2,265 | 10,271 |
Loss or Foreclosure | 0 | 0 |
Transferred to Non-accrual | 0 | |
Transferred to Held For Sale | (6,987) | |
Loan Amortization | (13) | |
Removed from (Taken to) Non-accrual | 0 | |
Ending Balance | $ 5,536 | $ 3,284 |
Loans Receivable, Net - Summa68
Loans Receivable, Net - Summary of Loans to Officers, Directors and Their Affiliates (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Receivables [Abstract] | ||
Balance at beginning of period | $ 4,022 | $ 4,800 |
New loans | 682 | 669 |
Principal repayments | (860) | (1,447) |
Balance at end of period | $ 3,844 | $ 4,022 |
Premises and Equipment - Compon
Premises and Equipment - Components of Premises and Equipment Included in the Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, Gross | $ 36,569 | $ 34,800 |
Less accumulated depreciation | 12,535 | 11,860 |
Premises and equipment, net | 24,034 | 22,940 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, Gross | 6,579 | 6,576 |
Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, Gross | 1,097 | 611 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, Gross | 22,405 | 20,914 |
Construction In Process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, Gross | 486 | |
Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, Gross | $ 6,488 | $ 6,213 |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 1,266 | $ 1,336 | $ 1,502 |
Intangible Assets - Amount of O
Intangible Assets - Amount of Other Intangible Assets and the Changes in the Carrying Amounts of Other Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Finite-Lived Intangible Assets [Line Items] | |||
Intangible Assets, Beginning balance | $ 33 | ||
Amortization | (33) | $ (97) | $ (162) |
Intangible Assets, Ending balance | 33 | ||
Other Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible Assets, Beginning balance | 33 | 130 | 292 |
Amortization | $ (33) | (97) | (162) |
Intangible Assets, Ending balance | $ 33 | $ 130 |
Deposits - Scheduled Maturities
Deposits - Scheduled Maturities of Other Time Deposits (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Banking and Thrift [Abstract] | ||
2,016 | $ 201,329 | |
2,017 | 60,281 | |
2,018 | 36,975 | |
2,019 | 6,441 | |
2,020 | 9,638 | |
Other time deposits | $ 314,664 | $ 331,915 |
Deposits - Additional Informati
Deposits - Additional Information (Detail) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule Of Deposits Liabilities Balance Sheet Reported Amounts [Line Items] | ||
Other time deposits | $ 78,800,000 | $ 78,800,000 |
Deposits of directors, members of senior management and their affiliates | 6,200,000 | |
Average daily clearings | 5,900,000 | |
Deposit with overdraft status | 196,000 | 248,000 |
Brokered and CDARS Deposits | 739,406,000 | 731,308,000 |
Brokered Deposits [Member] | ||
Schedule Of Deposits Liabilities Balance Sheet Reported Amounts [Line Items] | ||
Brokered and CDARS Deposits | $ 34,400,000 | $ 37,100,000 |
Deposits - Interest Expenses on
Deposits - Interest Expenses on Deposits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Banking and Thrift [Abstract] | |||
Interest bearing checking accounts | $ 1,105 | $ 1,253 | $ 1,243 |
Money market accounts | 88 | 86 | 73 |
Savings | 103 | 109 | 79 |
Other time deposits | 3,735 | 4,155 | 5,719 |
Total | $ 5,031 | $ 5,603 | $ 7,114 |
Advances from Federal Home Lo75
Advances from Federal Home Loan Bank - Summarized Federal Home Loan Bank Advances (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Federal Home Loan Banks [Abstract] | ||
Fixed-rate | $ 15,000 | $ 34,000 |
Weighted Average Rate | 2.19% | 0.88% |
Advances from Federal Home Lo76
Advances from Federal Home Loan Bank - Scheduled Maturities of FHLB Advances (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Federal Home Loan Banks [Abstract] | ||
2016, Fixed rate | $ 4,000 | |
2017, Fixed rate | 5,000 | |
2018, Fixed rate | 6,000 | |
Total, Fixed rate | $ 15,000 | |
2016, Average cost | 5.34% | |
2017, Average cost | 0.88% | |
2018, Average cost | 1.18% | |
Average cost | 2.19% | 0.88% |
Advances from Federal Home Lo77
Advances from Federal Home Loan Bank - Additional Information (Detail) | Dec. 31, 2015USD ($) |
Federal Home Loan Bank, Advances [Line Items] | |
Agreement of first mortgage loan and non-residential real estate loan | 125.00% |
Additional borrowing capacity | $ 54,000,000 |
Additional collateral pledged that could be pledged to FHLB | 17,200,000 |
Federal Home Loan Bank of Cincinnati [Member] | |
Federal Home Loan Bank, Advances [Line Items] | |
Approved line of credit | 30,000,000 |
BVA Compass Bank [Member] | |
Federal Home Loan Bank, Advances [Line Items] | |
Approved line of credit | 8,000,000 |
Bva Compass Bank and Cincinnati [Member] | Overnight Line of Credit [Member] | |
Federal Home Loan Bank, Advances [Line Items] | |
Overnight lines of credit outstanding amount | $ 0 |
Repurchase Agreements - Additio
Repurchase Agreements - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2006Agreement | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Banking and Thrift [Abstract] | |||
Number of long term repurchase agreements | Agreement | 2 | ||
Investment securities for repurchase agreements | $ 45,800,000 | ||
Maximum repurchase balances outstanding | $ 57,400,000 | $ 57,900,000 |
Repurchase Agreements - Cost an
Repurchase Agreements - Cost and Maturities of Company's Repurchase Agreements (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Balance of Third Party | $ 45,770 | $ 57,358 |
Average Rate | 1.13% | 1.42% |
Merrill Lynch [Member] | Quarterly Callable [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Balance of Third Party | $ 6,000 | $ 6,000 |
Average Rate | 4.36% | 4.36% |
Maturity | Sep. 18, 2016 | Sep. 18, 2016 |
Various Customers [Member] | Overnight [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Balance of Third Party | $ 39,770 | $ 51,358 |
Average Rate | 0.61% | 0.60% |
Fair Value Measurement - Assets
Fair Value Measurement - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Available for sale securities | $ 237,177 | $ 303,628 |
Fair Value, Measurements, Recurring [Member] | ||
Assets | ||
Available for sale securities | 237,177 | 303,628 |
Liabilities | ||
Interest rate swap | 390 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets | ||
Available for sale securities | 2,000 | 3,980 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets | ||
Available for sale securities | 2,000 | 3,980 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets | ||
Available for sale securities | 233,312 | 298,159 |
Liabilities | ||
Interest rate swap | 390 | |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets | ||
Available for sale securities | 233,312 | 298,159 |
Liabilities | ||
Interest rate swap | 390 | |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets | ||
Available for sale securities | 1,865 | 1,489 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets | ||
Available for sale securities | $ 1,865 | $ 1,489 |
Fair Value Measurement - Asse81
Fair Value Measurement - Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Other real estate owned | $ 1,736 | $ 1,927 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Assets | ||
Other real estate owned | 1,736 | 1,927 |
Impaired loans, net of allowance | 3,319 | 3,869 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Assets | ||
Other real estate owned | 1,736 | 1,927 |
Impaired loans, net of allowance | $ 3,319 | $ 3,869 |
Fair Value Measurement - Asse82
Fair Value Measurement - Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis (Parenthetical) (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value Assets And Liabilities Measured On Nonrecurring Basis [Line Items] | ||
Allowance on impaired loans | $ 630 | $ 1,514 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value Assets And Liabilities Measured On Nonrecurring Basis [Line Items] | ||
Allowance on impaired loans | $ 630 | $ 1,514 |
Fair Value Measurement - Roll-F
Fair Value Measurement - Roll-Forward of the Consolidated Condensed Statement of Financial Condition Items (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Other Assets [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value, Beginning balance | $ 1,489 | $ 1,489 |
Change in unrealized gains (losses) included in other comprehensive income for assets and liabilities still held at December 31, | 359 | |
Other than temporary impairment charge | 0 | 0 |
Recovery of prior impairment charge | 17 | |
Purchases, issuances and settlements, net | 0 | 0 |
Transfers in and/or out of Level 3 | 0 | 0 |
Fair value, Ending balance | 1,865 | 1,489 |
Other Liabilities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Other than temporary impairment charge | 0 | 0 |
Purchases, issuances and settlements, net | 0 | 0 |
Transfers in and/or out of Level 3 | $ 0 | $ 0 |
Fair Value Measurement - Estima
Fair Value Measurement - Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financial Assets: | ||
Securities available for sale | $ 237,177 | $ 303,628 |
Amortized Cost [Member] | ||
Financial Assets: | ||
Cash and due from banks | 46,926 | 34,389 |
Interest-earning deposits | 7,772 | 6,050 |
Securities available for sale | 237,177 | 303,628 |
Federal Home Loan Bank stock | 4,428 | 4,428 |
Loans held for sale | 2,792 | 1,444 |
Loans receivable | 556,349 | 539,264 |
Accounts receivable | 4,576 | |
Accrued interest receivable | 4,139 | |
Financial liabilities: | ||
Deposits | 739,406 | 731,308 |
Advances from borrowers for taxes and insurance | 614 | 513 |
Advances from Federal Home Loan Bank | 15,000 | 34,000 |
Repurchase agreements | 45,770 | 57,358 |
Subordinated debentures | 10,310 | 10,310 |
Off-balance-sheet liabilities: | ||
Commitments to extend credit | 0 | 0 |
Commercial letters of credit | 0 | 0 |
Market value of interest rate swap | 390 | |
Estimated Fair Value [Member] | ||
Financial Assets: | ||
Cash and due from banks | 46,926 | 34,389 |
Interest-earning deposits | 7,772 | 6,050 |
Securities available for sale | 237,177 | 303,628 |
Federal Home Loan Bank stock | 4,428 | 4,428 |
Loans held for sale | 2,792 | 1,444 |
Loans receivable | 552,981 | 537,493 |
Accounts receivable | 4,576 | |
Accrued interest receivable | 4,139 | |
Financial liabilities: | ||
Deposits | 724,877 | 714,750 |
Advances from borrowers for taxes and insurance | 614 | 513 |
Advances from Federal Home Loan Bank | 14,985 | 34,217 |
Repurchase agreements | 45,931 | 57,688 |
Subordinated debentures | 10,099 | 10,099 |
Off-balance-sheet liabilities: | ||
Commitments to extend credit | 0 | 0 |
Commercial letters of credit | 0 | 0 |
Market value of interest rate swap | 390 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Financial Assets: | ||
Cash and due from banks | 46,926 | 34,389 |
Interest-earning deposits | 7,772 | 6,050 |
Securities available for sale | 2,000 | 3,980 |
Off-balance-sheet liabilities: | ||
Commitments to extend credit | 0 | 0 |
Commercial letters of credit | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Financial Assets: | ||
Securities available for sale | 233,312 | 298,159 |
Federal Home Loan Bank stock | 4,428 | 4,428 |
Loans held for sale | 2,792 | 1,444 |
Accounts receivable | 4,576 | |
Accrued interest receivable | 4,139 | |
Financial liabilities: | ||
Deposits | 724,877 | 714,750 |
Advances from borrowers for taxes and insurance | 614 | 513 |
Advances from Federal Home Loan Bank | 14,985 | 34,217 |
Repurchase agreements | 45,931 | 57,688 |
Off-balance-sheet liabilities: | ||
Commitments to extend credit | 0 | 0 |
Commercial letters of credit | 0 | 0 |
Market value of interest rate swap | 390 | |
Significant Unobservable Inputs (Level 3) [Member] | ||
Financial Assets: | ||
Securities available for sale | 1,865 | 1,489 |
Loans receivable | 552,981 | 537,493 |
Financial liabilities: | ||
Subordinated debentures | 10,099 | 10,099 |
Off-balance-sheet liabilities: | ||
Commitments to extend credit | 0 | 0 |
Commercial letters of credit | $ 0 | $ 0 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional information (Detail) | 12 Months Ended |
Dec. 31, 2015AssetsLiabilities | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |
Number of non-financial assets | Assets | 0 |
Number of non-financial liabilities | Liabilities | 0 |
Fair Value Measurement - Forecl
Fair Value Measurement - Foreclosed Assets that were Re-measured and Reported at Fair Value (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value Disclosures [Abstract] | |||
Beginning balance | $ 1,927 | $ 1,674 | $ 1,548 |
Carrying value of foreclosed assets prior to acquisition | 986 | 1,816 | 1,535 |
Proceeds from sale of foreclosed assets | (344) | (1,118) | (908) |
Charge-offs recognized in the allowance for loan loss | (117) | (237) | (361) |
Losses included in non-interest expense | (716) | (208) | (140) |
Fair value | $ 1,736 | $ 1,927 | $ 1,674 |
Subordinated Debentures - Addit
Subordinated Debentures - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | ||||
Oct. 31, 2008 | Sep. 30, 2003USD ($)$ / Security | Dec. 31, 2015USD ($) | Dec. 31, 2003USD ($) | Dec. 31, 2014USD ($) | Oct. 08, 2008USD ($) | |
Debt Disclosure [Abstract] | ||||||
Variable rate capital securities with an aggregate liquidation amount | $ 10,000,000 | |||||
Preferred security, Aggregate liquidation amount | $ / Security | 1,000 | |||||
Floating rate junior subordinated debentures | $ 10,310,000 | $ 10,310,000 | $ 10,310,000 | |||
Percentage above LIBOR | 3.10% | 3.10% | ||||
Interest rate to be received under swap agreement, adjusted quarterly | Three-month London Interbank Lending Rate (Libor) plus 3.10% | |||||
Interest rate after adjustment | 3.72% | |||||
Junior subordinated debentures maturity | 2,033 | |||||
Junior subordinated debentures and capital securities redemption price | $ 1,000 |
Concentrations of Credit Risk -
Concentrations of Credit Risk - Additional Information (Detail) | Dec. 31, 2015USD ($) |
Risks and Uncertainties [Abstract] | |
Deposit with bank insured amount | $ 250,000 |
Total FHLB deposits | 12,500,000 |
Total deposits at federal reserve | 8,100,000 |
Total deposits at BBVA | $ 26,800,000 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) | Mar. 02, 2015 | Oct. 28, 2014 | Mar. 20, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 24, 1999 |
Compensation Related Costs Disclosure [Line Items] | ||||||||
Fully vested options | 20,808 | 20,808 | ||||||
Board of Directors granted options to purchase, Shares of common stock | 0 | 0 | ||||||
Stock options outstanding | $ 0 | |||||||
Purchase of common stock | 546,413 | 0 | ||||||
Shares purchased from the corporation | 600,000 | |||||||
Cost of shares purchased from the corporation | $ 704,000 | |||||||
2015 Employee Stock Ownership Plan [Member] | ||||||||
Compensation Related Costs Disclosure [Line Items] | ||||||||
Employee stock ownership plan employee minimum service period | 1 year | |||||||
Employee stock ownership plan, description | 2015 Employee Stock Ownership Plan (the “ESOP”) which covers substantially all employees who are at least 21 years old with at least one year of employment with the Company and Heritage Bank USA, Inc. (the “Bank”), the Company’s commercial bank subsidiary. The ESOP has three individuals who have been selected by the Company to serve as trustees. A directed corporate trustee has also been appointed. The ESOP will be administered by a committee (the “Committee”) currently composed of eleven employees selected by the Company or its designee. | |||||||
Percentage of common stock approved by Federal Reserve Bank to be owned | 24.90% | |||||||
Employee stock ownership plan loan, shares released from the ESOP trust | 53,587 | |||||||
Employee stock ownership plan loan, expenses recognized | $ 652,000 | |||||||
2015 Employee Stock Ownership Plan [Member] | Employee Stock Option Plan Loan [Member] | ||||||||
Compensation Related Costs Disclosure [Line Items] | ||||||||
Employee stock option plan, loan amount | $ 13,500,000 | |||||||
Purchase of common stock | 1,000,000 | |||||||
Shares purchased from the corporation | 600,000 | |||||||
Cost of shares purchased from the corporation | $ 7,884,000 | |||||||
Interest rate on ESOP loan | 3.00% | |||||||
Final maturity date | Dec. 9, 2026 | |||||||
HopFed [Member] | ||||||||
Compensation Related Costs Disclosure [Line Items] | ||||||||
Cost of shares purchased from the corporation | $ 704,000 | |||||||
1999 Stock Option Plan [Member] | ||||||||
Compensation Related Costs Disclosure [Line Items] | ||||||||
Shares authorized to be granted under option or other stock incentive plans | 403,360 | |||||||
Fully vested options | 20,808 | |||||||
2000 Stock Option Plan [Member] | ||||||||
Compensation Related Costs Disclosure [Line Items] | ||||||||
Shares authorized to be granted under option or other stock incentive plans | 40,000 | |||||||
Exercise price per share | $ 10 | |||||||
Board of Directors granted options to purchase, Shares of common stock | 40,000 | |||||||
2004 Long Term Incentive Plan [Member] | ||||||||
Compensation Related Costs Disclosure [Line Items] | ||||||||
Shares authorized to be granted under option or other stock incentive plans | 200,000 | |||||||
Stock options vesting period | 4 years | |||||||
Shares issued under long-term incentive plan | $ 0 | |||||||
Compensation expense | $ 190,000 | $ 164,000 | $ 115,000 | |||||
2004 Long Term Incentive Plan [Member] | Restricted Stock [Member] | ||||||||
Compensation Related Costs Disclosure [Line Items] | ||||||||
Shares authorized to be granted under option or other stock incentive plans | 2,034 | 22,378 | 21,559 | |||||
Restricted stock granted by Compensation Committee, market value | $ 25,000 | $ 260,000 | $ 232,000 | |||||
2013 Long Term Incentive Plan [Member] | ||||||||
Compensation Related Costs Disclosure [Line Items] | ||||||||
Shares authorized to be granted under option or other stock incentive plans | 300,000 | |||||||
2013 Long Term Incentive Plan [Member] | Minimum [Member] | ||||||||
Compensation Related Costs Disclosure [Line Items] | ||||||||
Stock options vesting period | 3 years | |||||||
2013 Long Term Incentive Plan [Member] | Maximum [Member] | ||||||||
Compensation Related Costs Disclosure [Line Items] | ||||||||
Stock options vesting period | 4 years | |||||||
401(k) [Member] | ||||||||
Compensation Related Costs Disclosure [Line Items] | ||||||||
Employee contributions of earnings in the plan | 15.00% | |||||||
Management matching contribution in the plan | 4.00% | |||||||
Additional compensation without regards to the employee contribution | 4.00% | |||||||
Company contributions, expense | $ 769,000 | 737,000 | ||||||
Company contributions forfeited by employees | $ 43,000 | $ 22,000 | ||||||
Deferred Compensation Plans [Member] | ||||||||
Compensation Related Costs Disclosure [Line Items] | ||||||||
Deferred compensation arrangement number of installments related to distributions paid | 15 years | |||||||
Original face value of all deferred compensation contracts | $ 668,000 | |||||||
Accrued value of all deferred compensation contracts | 265,000 | |||||||
Cash remittances on deferred compensation contracts per year | $ 12,000 | |||||||
HopFed Bancorp Long Term Incentive Plans [Member] | HopFed [Member] | ||||||||
Compensation Related Costs Disclosure [Line Items] | ||||||||
Restricted shares available from the HOPFED Bancorp | 254,256 |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary Represents the Activity Under the Stock Option Plans (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Beginning balance, Number of Shares | 20,808 | 20,808 |
Granted, Number of Shares | 0 | 0 |
Exercised, Number of Shares | 0 | 0 |
Forfeited, Number of Shares | (20,808) | |
Ending balance, Number of Shares | 20,808 | |
Beginning balance, Weighted Average Exercise Price | $ 16.67 | $ 16.67 |
Granted, Weighted Average Exercise Price | 0 | 0 |
Exercised, Weighted Average Exercise Price | 0 | 0 |
Forfeited, Weighted Average Exercise Price | $ 16.67 | |
Ending balance, Weighted Average Exercise Price | $ 16.67 |
Employee Benefit Plans - Compen
Employee Benefit Plans - Compensation Expense to be Recognized (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
2,016 | $ 139 |
2,017 | 52 |
2,018 | 9 |
2,019 | 3 |
Total | $ 203 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Tax Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current | |||||||||||
Federal | $ (32) | ||||||||||
State | $ 97 | $ 30 | 110 | ||||||||
Current income tax expenses | 97 | 30 | 78 | ||||||||
Deferred | |||||||||||
Federal | 177 | (231) | 566 | ||||||||
State | 0 | 0 | 0 | ||||||||
Deferred income taxes expenses | 177 | (231) | 566 | ||||||||
Income tax expense (benefit) | $ 74 | $ (23) | $ (212) | $ 435 | $ (852) | $ 577 | $ 214 | $ (140) | $ 274 | $ (201) | $ 644 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Federal income tax rate | 34.00% | |
Amount of thrift which no longer use reserve method | $ 500,000,000 | |
Net operating loss carry forwards | $ 3,100,000 | |
Operating loss carryforwards expiration year | 2,034 | |
Amount of bad debt deductions included retained earnings | $ 4,027,000 | $ 4,027,000 |
Valuation allowance for deferred tax assets | 0 | 0 |
Unrecognized tax benefits | $ 0 | $ 0 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Federal Income Tax Rate (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||||||||||
Expected federal income tax expense at statutory tax rate | $ 911 | $ 679 | $ 1,498 | ||||||||
Effect of nontaxable interest income | (458) | (542) | (590) | ||||||||
Effect of nontaxable bank owned life insurance income | (114) | (104) | (120) | ||||||||
Effect of QSCAB credit | (109) | (220) | (220) | ||||||||
State taxes on income, net of federal benefit | 59 | 10 | 73 | ||||||||
Other tax credits | (80) | (80) | (80) | ||||||||
Non deductible expenses | 65 | 56 | 83 | ||||||||
Income tax expense (benefit) | $ 74 | $ (23) | $ (212) | $ 435 | $ (852) | $ 577 | $ 214 | $ (140) | $ 274 | $ (201) | $ 644 |
Effective tax rate (benefit) | 10.20% | (10.10%) | 14.60% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Taxes (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Allowance for loan loss | $ 1,938 | $ 2,116 |
Accrued expenses | 377 | 89 |
Net operating loss carry forward | 1,182 | 1,135 |
Tax credit carry forward | 258 | 258 |
Intangible amortization | 784 | 981 |
Other | 267 | 287 |
Other real estate owned | 95 | |
Deferred tax assets Net | 4,806 | 4,961 |
Deferred tax liabilities: | ||
FHLB stock dividends | (787) | (787) |
Unrealized gain on items in comprehensive income | (1,275) | (1,832) |
Depreciation and amortization | (102) | (81) |
Deferred tax liabilities, Gross, Total | (2,164) | (2,700) |
Net deferred tax asset | $ 2,642 | $ 2,261 |
Real Estate and Other Assets 96
Real Estate and Other Assets Owned - Company's Balance in Both Real Estate and Other Assets Owned (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total other assets owned | $ 1,736 | $ 1,927 |
Land [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total other assets owned | 943 | 1,768 |
One-to-Four Family Mortgages [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total other assets owned | 55 | $ 159 |
Non-Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total other assets owned | $ 738 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2008 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitment and Contingencies [Line Items] | ||||
Amount of fixed rate loan commitments | $ 0 | $ 0 | ||
Initial term of employment agreements | 3 years | |||
Rental expenses | $ 61,000 | 66,000 | $ 54,000 | |
Variable monthly cost associated with contract, average | 1,400,000 | |||
Annual cost under branding agreements | 103,000 | |||
Amount of annual cost per covered individual under first specific stop loss policy limits | 90,000 | |||
Amount of annual cost per covered individual under second specific stop loss policy limits | 1,852,013 | |||
Liability related to self insured medical expenses | $ 400,000 | 170,000 | ||
Duration of interest rate swap agreement | 7 years | |||
Interest rate swap amount | $ 10,000,000 | |||
Fixed rate of interest rate swap agreement to be paid | 7.27% | |||
Interest rate to be received under swap agreement | Three-month London Interbank Lending Rate (Libor) plus 3.10% | |||
LIBOR | 3.10% | 3.10% | ||
Interest Rate Swap [Member] | ||||
Commitment and Contingencies [Line Items] | ||||
Interest rate swap agreement expiry date | Oct. 8, 2015 | |||
Minimum [Member] | ||||
Commitment and Contingencies [Line Items] | ||||
Period of most guarantees | 1 year | |||
Maximum [Member] | ||||
Commitment and Contingencies [Line Items] | ||||
Period of most guarantees | 2 years | |||
Commitments to Extend Credit [Member] | ||||
Commitment and Contingencies [Line Items] | ||||
Contractual notional amount of instruments | $ 46,400,000 | 45,200,000 | ||
Unused Lines of Credit [Member] | ||||
Commitment and Contingencies [Line Items] | ||||
Contractual notional amount of instruments | 84,900,000 | 80,100,000 | ||
Unused Lines of Credit [Member] | Customer Deposit Accounts [Member] | ||||
Commitment and Contingencies [Line Items] | ||||
Contractual notional amount of instruments | $ 9,500,000 | $ 35,500,000 |
Commitments and Contingencies98
Commitments and Contingencies - Future Minimal Lease and Rental Commitments (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,016 | $ 2,352 |
2,017 | 2,240 |
2,018 | 1,505 |
2,019 | 1,397 |
2,020 | 0 |
Total | $ 7,494 |
Regulatory Matters - The Compan
Regulatory Matters - The Company's Consolidated Capital Ratios and the Bank's Actual Capital Amounts and Ratios (Detail) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 leverage capital to adjusted total assets, Actual Amount | $ 95,156 | $ 104,813 |
Tier 1 leverage capital to adjusted total assets, For Capital Adequacy Purchases, Amount | 34,924 | 37,763 |
Tier 1 leverage capital to adjusted total assets, To be Well Capitalized for Prompt Correction Action Provisions, Amount | 43,656 | 47,204 |
Total capital to risk weighted assets, Actual Amount | 100,857 | 111,102 |
Total capital to risk weighted assets, For Capital Adequacy Purchases, Amount | 46,772 | 46,662 |
Total capital to risk weighted assets, To be Well Capitalized for Prompt Correction Action Provisions, Amount | 58,465 | 58,327 |
Tier 1 capital to risk weighted assets, Actual Amount | 95,156 | 104,813 |
Tier 1 capital to risk weighted assets, For Capital Adequacy Purchases, Amount | 35,079 | $ 23,331 |
Tier 1 capital to risk weighted assets, To be Well Capitalized for Prompt Correction Action Provisions, Amount | 46,772 | |
Common equity tier 1 capital to risk weighted assets, Actual Amount | 95,156 | |
Common equity tier 1 capital to risk weighted assets, For Capital Adequacy Purchases, Amount | $ 26,309 | |
Tier 1 leverage capital to adjusted total assets, Actual Ratio | 10.90% | 11.10% |
Tier 1 leverage capital to adjusted total assets, For Capital Adequacy Purchases, Ratio | 4.00% | 4.00% |
Tier 1 leverage capital to adjusted total assets, To be Well Capitalized for Prompt Correction Action Provisions, Ratio | 5.00% | 5.00% |
Total capital to risk weighted assets, Actual Ratio | 17.30% | 19.10% |
Total capital to risk weighted assets, For Capital Adequacy Purchases, Ratio | 8.00% | 8.00% |
Total capital to risk weighted assets, To be Well Capitalized for Prompt Correction Action Provisions, Ratio | 10.00% | 10.00% |
Tier 1 capital to risk weighted assets, Actual Ratio | 16.30% | 18.00% |
Tier 1 capital to risk weighted assets, For Capital Adequacy Purchases, Ratio | 6.00% | 4.00% |
Tier 1 capital to risk weighted assets, To be Well Capitalized for Prompt Correction Action Provisions, Ratio | 8.00% | |
Common equity tier 1 capital to risk weighted assets, Actual Ratio | 16.30% | |
Common equity tier 1 capital to risk weighted assets, For Capital Adequacy Purchases, Ratio | 4.50% | |
Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 leverage capital to adjusted total assets, Actual Amount | $ 93,328 | $ 102,240 |
Tier 1 leverage capital to adjusted total assets, For Capital Adequacy Purchases, Amount | 34,840 | 37,252 |
Tier 1 leverage capital to adjusted total assets, To be Well Capitalized for Prompt Correction Action Provisions, Amount | 43,550 | 46,567 |
Total capital to risk weighted assets, Actual Amount | 99,029 | 108,529 |
Total capital to risk weighted assets, For Capital Adequacy Purchases, Amount | 46,272 | 46,576 |
Total capital to risk weighted assets, To be Well Capitalized for Prompt Correction Action Provisions, Amount | 57,840 | 58,220 |
Tier 1 capital to risk weighted assets, Actual Amount | 93,328 | 102,240 |
Tier 1 capital to risk weighted assets, For Capital Adequacy Purchases, Amount | 34,704 | 23,288 |
Tier 1 capital to risk weighted assets, To be Well Capitalized for Prompt Correction Action Provisions, Amount | 46,272 | $ 34,932 |
Common equity tier 1 capital to risk weighted assets, Actual Amount | 93,328 | |
Common equity tier 1 capital to risk weighted assets, For Capital Adequacy Purchases, Amount | 26,028 | |
Common equity tier 1 capital to risk weighted assets, To be Well Capitalized for Prompt Correction Action Provisions, Amount | $ 37,596 | |
Tier 1 leverage capital to adjusted total assets, Actual Ratio | 10.70% | 11.00% |
Tier 1 leverage capital to adjusted total assets, For Capital Adequacy Purchases, Ratio | 4.00% | 4.00% |
Tier 1 leverage capital to adjusted total assets, To be Well Capitalized for Prompt Correction Action Provisions, Ratio | 5.00% | 5.00% |
Total capital to risk weighted assets, Actual Ratio | 17.10% | 18.60% |
Total capital to risk weighted assets, For Capital Adequacy Purchases, Ratio | 8.00% | 8.00% |
Total capital to risk weighted assets, To be Well Capitalized for Prompt Correction Action Provisions, Ratio | 10.00% | 10.00% |
Tier 1 capital to risk weighted assets, Actual Ratio | 16.10% | 17.60% |
Tier 1 capital to risk weighted assets, For Capital Adequacy Purchases, Ratio | 6.00% | 4.00% |
Tier 1 capital to risk weighted assets, To be Well Capitalized for Prompt Correction Action Provisions, Ratio | 8.00% | 6.00% |
Common equity tier 1 capital to risk weighted assets, Actual Ratio | 16.10% | |
Common equity tier 1 capital to risk weighted assets, For Capital Adequacy Purchases, Ratio | 4.50% | |
Common equity tier 1 capital to risk weighted assets, To be Well Capitalized for Prompt Correction Action Provisions, Ratio | 6.50% |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | Nov. 18, 2015 | Oct. 28, 2014 | Dec. 19, 2012 | Dec. 12, 2008 | Nov. 30, 2008 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Jan. 11, 2013 | Oct. 31, 2011 | Oct. 03, 2011 | Oct. 31, 2010 | Sep. 30, 2010 |
Stockholders Equity [Line Items] | ||||||||||||||||
Tier 1 risk-based capital ratio | 16.30% | 18.00% | ||||||||||||||
Additional number of shares under repurchase program | 300,000 | 300,000 | ||||||||||||||
Repurchase program expiration date | Dec. 31, 2017 | |||||||||||||||
Shares repurchased | 252,798 | |||||||||||||||
ESOP shares reissued | 600,000 | |||||||||||||||
Treasury stock, shares | 1,085,888 | 778,383 | ||||||||||||||
Exercise price of common stock warrants issued under Capital Purchase Program | $ 11.32 | |||||||||||||||
Number of common stock warrants issued under Capital Purchase Program | 243,816 | |||||||||||||||
Percentage of common stock dividend | 2.00% | 2.00% | ||||||||||||||
Number of common stock warrants outstanding | 253,667 | 253,667 | ||||||||||||||
Exercise price of common stock warrants | $ 10.88 | $ 10.88 | ||||||||||||||
Dividend paid to the Company from its Bank subsidiary | $ 6,000,000 | |||||||||||||||
Repurchase of warrant from treasury | $ 256,257 | |||||||||||||||
Dividend record date | Oct. 3, 2011 | Sep. 30, 2010 | ||||||||||||||
Number of common stock outstanding increased due to common stock dividends | 146,485 | 143,458 | ||||||||||||||
Dividend paid, Date | Oct. 18, 2011 | Oct. 18, 2010 | ||||||||||||||
Value per common stock warrant | $ 2.28 | |||||||||||||||
Total value of common stock warrant | $ 555,900 | |||||||||||||||
Accelerated of our warrant accretion | $ 222,360 | |||||||||||||||
Period of treasury as of interest free rate | 10 years | |||||||||||||||
Total risk-based capital ratio | 17.30% | 19.10% | ||||||||||||||
Capital conservation buffer | 2.50% | |||||||||||||||
General Corporate Purchases or Employee Benefit Plans [Member] | ||||||||||||||||
Stockholders Equity [Line Items] | ||||||||||||||||
Additional number of shares under repurchase program | 1,000,000 | |||||||||||||||
ESOP [Member] | ||||||||||||||||
Stockholders Equity [Line Items] | ||||||||||||||||
Additional number of shares under repurchase program | 860,303 | |||||||||||||||
Repurchase program expiration date | Oct. 31, 2015 | |||||||||||||||
Basel Three Requirements [Member] | ||||||||||||||||
Stockholders Equity [Line Items] | ||||||||||||||||
Tier 1 risk-based capital ratio | 6.00% | |||||||||||||||
Common equity Tier 1 capital ratio | 4.50% | |||||||||||||||
Total risk-based capital ratio | 8.00% | |||||||||||||||
Tier 1 leverage ratio | 4.00% | |||||||||||||||
Post Capital Conservation Buffer [Member] | ||||||||||||||||
Stockholders Equity [Line Items] | ||||||||||||||||
Tier 1 risk-based capital ratio | 8.50% | |||||||||||||||
Common equity Tier 1 capital ratio | 7.00% | |||||||||||||||
Total risk-based capital ratio | 10.50% | |||||||||||||||
Bank Subsidiary [Member] | Minimum [Member] | ||||||||||||||||
Stockholders Equity [Line Items] | ||||||||||||||||
Tier 1 risk-based capital ratio | 8.50% | |||||||||||||||
Bank [Member] | Minimum [Member] | ||||||||||||||||
Stockholders Equity [Line Items] | ||||||||||||||||
Tier 1 risk-based capital ratio | 9.00% | |||||||||||||||
Preferred Shares [Member] | ||||||||||||||||
Stockholders Equity [Line Items] | ||||||||||||||||
Preferred stock shares issued and sold | 18,400 | 18,400 | ||||||||||||||
Value of shares of preferred stock issued and sold | $ 18,400,000 | |||||||||||||||
Parent [Member] | ||||||||||||||||
Stockholders Equity [Line Items] | ||||||||||||||||
Expiration period of common stock warrants issued under Capital Purchase Program | 10 years | |||||||||||||||
First specified period for cumulative dividends of preferred stock | 5 years | |||||||||||||||
Preferred stock dividend | 5.00% | |||||||||||||||
Cumulative dividends quarterly thereafter | 9.00% | |||||||||||||||
Common Stock [Member] | ||||||||||||||||
Stockholders Equity [Line Items] | ||||||||||||||||
Shares repurchased | 907,505 | 298,999 | 76,468 | |||||||||||||
Treasury stock, shares | 1,085,888 | |||||||||||||||
Average price of treasury stock | $ 12.41 | |||||||||||||||
Preferred stock shares issued and sold | 600,000,000 | |||||||||||||||
Commenced In August Two Thousand And Six [Member] | ||||||||||||||||
Stockholders Equity [Line Items] | ||||||||||||||||
Additional number of shares under repurchase program | 125,000 | |||||||||||||||
Repurchase program expiration date | Sep. 30, 2008 | |||||||||||||||
Treasury stock, shares reissued | 112,639 | |||||||||||||||
Average price of buyback | $ 15.36 | |||||||||||||||
Shares repurchased | 106,647 |
Stockholders' Equity - Assumpti
Stockholders' Equity - Assumptions for Calculating Fair Value of the Common Stock Warrants (Detail) - Common Stock Warrant [Member] | 12 Months Ended |
Dec. 31, 2015$ / shares | |
Stockholders Equity [Line Items] | |
Risk free rate | 2.60% |
Expected life of warrants | 10 years |
Expected dividend yield | 3.50% |
Expected volatility | 26.50% |
Weighted average fair value | $ 2.28 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Reconciliation of Weighted Average Common Shares (Detail) - shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Basic earnings per share: | |||||||||||
Weighted average common shares | 6,919,190 | 7,306,078 | 7,483,606 | ||||||||
Adjustment for ESOP activity | (546,913) | ||||||||||
Weighted average common shares | 6,328,324 | 6,359,556 | 6,425,687 | 6,732,456 | 7,165,957 | 7,265,597 | 7,376,726 | 7,416,716 | 6,372,277 | 7,306,078 | 7,483,606 |
Dilutive effect of stock options | 0 | 0 | 0 | ||||||||
Weighted average common and incremental shares | 6,328,324 | 6,359,556 | 6,425,687 | 6,732,456 | 7,165,957 | 7,265,597 | 7,376,726 | 7,416,716 | 6,372,277 | 7,306,078 | 7,483,606 |
Condensed Parent Company Onl103
Condensed Parent Company Only Financial Statements - Summary of Condensed Balance Sheets (Detail) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2003 |
Assets: | |||||
Cash and due from banks | $ 46,926,000 | $ 34,389,000 | |||
Total assets | 903,154,000 | 935,785,000 | |||
Liabilities and equity Liabilities | |||||
Dividends payable - common | 287,000 | 301,000 | |||
Subordinated debentures | 10,310,000 | 10,310,000 | $ 10,310,000 | ||
Total liabilities | $ 815,524,000 | $ 837,383,000 | |||
Equity: | |||||
Preferred stock | |||||
Common stock | $ 79,000 | $ 79,000 | |||
Additional paid-in capital | 58,604,000 | 58,466,000 | |||
Retained earnings | 47,124,000 | 45,729,000 | |||
Treasury stock | (13,471,000) | (9,429,000) | |||
Accumulated other comprehensive income | 2,474,000 | 3,557,000 | |||
Total stockholders' equity | 87,630,000 | 98,402,000 | $ 95,717,000 | $ 104,999,000 | |
Total liabilities and equity | 903,154,000 | 935,785,000 | |||
Common Stock [Member] | |||||
Equity: | |||||
Total stockholders' equity | 79,000 | 79,000 | $ 79,000 | $ 79,000 | |
HopFed [Member] | |||||
Assets: | |||||
Cash and due from banks | 2,087,000 | 2,932,000 | |||
Investment in subsidiary | 95,804,000 | 106,088,000 | |||
Prepaid expenses and other assets | 490,000 | 534,000 | |||
Total assets | 98,381,000 | 109,554,000 | |||
Liabilities and equity Liabilities | |||||
Unrealized loss on derivative | 390,000 | ||||
Dividends payable - common | 287,000 | 301,000 | |||
Interest payable | 89,000 | 87,000 | |||
Other liabilities | 65,000 | 64,000 | |||
Subordinated debentures | 10,310,000 | 10,310,000 | |||
Total liabilities | $ 10,751,000 | $ 11,152,000 | |||
Equity: | |||||
Preferred stock | |||||
Common stock | $ 79,000 | $ 79,000 | |||
Additional paid-in capital | 58,604,000 | 58,466,000 | |||
Retained earnings | 47,124,000 | 45,729,000 | |||
Unearned ESOP shares | (7,180,000) | ||||
Accumulated other comprehensive income | 2,474,000 | 3,557,000 | |||
Total stockholders' equity | 87,630,000 | 98,402,000 | |||
Total liabilities and equity | 98,381,000 | 109,554,000 | |||
HopFed [Member] | Common Stock [Member] | |||||
Equity: | |||||
Treasury stock | $ (13,471,000) | $ (9,429,000) |
Condensed Parent Company Onl104
Condensed Parent Company Only Financial Statements - Summary of Condensed Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest and dividend income: | |||||||||||
Total interest and dividend income | $ 7,996 | $ 8,012 | $ 7,919 | $ 9,195 | $ 8,294 | $ 8,994 | $ 8,734 | $ 8,658 | $ 33,122 | $ 34,680 | $ 35,857 |
Interest expense | 1,672 | 1,633 | 1,612 | 1,633 | 2,001 | 2,186 | 2,354 | 2,338 | 6,550 | 8,879 | 10,581 |
Non-interest expenses | 7,188 | 7,553 | 8,234 | 7,470 | 11,582 | 7,563 | 7,447 | 7,324 | 30,445 | 33,916 | 28,638 |
Income (loss) before income tax expense | 730 | 487 | (329) | 1,790 | (1,885) | 2,530 | 1,139 | 214 | |||
Income tax benefits | $ (74) | $ 23 | $ 212 | $ (435) | $ 852 | $ (577) | $ (214) | $ 140 | (274) | 201 | (644) |
HopFed [Member] | |||||||||||
Interest and dividend income: | |||||||||||
Dividend income from subsidiary Bank | 12,100 | 2,600 | 5,500 | ||||||||
Total interest and dividend income | 12,100 | 2,600 | 5,500 | ||||||||
Interest expense | 740 | 737 | 733 | ||||||||
Non-interest expenses | 541 | 546 | 684 | ||||||||
Total expenses | 1,281 | 1,283 | 1,417 | ||||||||
Income (loss) before income tax expense | 10,819 | 1,317 | 4,083 | ||||||||
Income tax benefits | (529) | (459) | (496) | ||||||||
Income before equity in undistributed earnings of subsidiary | 11,348 | 1,776 | 4,579 | ||||||||
Equity in (distribution in excess of) earnings of subsidiary | (8,944) | 423 | (817) | ||||||||
Net income available for common shareholders | $ 2,404 | $ 2,199 | $ 3,762 |
Condensed Parent Company Onl105
Condensed Parent Company Only Financial Statements - Summary of Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||||||||||
Net income | $ 656 | $ 510 | $ (117) | $ 1,355 | $ (1,033) | $ 1,953 | $ 925 | $ 354 | $ 2,404 | $ 2,199 | $ 3,762 |
Increase (decrease) in: | |||||||||||
Net cash provided by operating activities | 6,436 | 10,136 | 9,315 | ||||||||
Cash flows for investing activities: | |||||||||||
Net cash flow used in investing activities | 42,457 | 19,020 | (4,329) | ||||||||
Cash flows from financing activities: | |||||||||||
Purchase of common stock - treasury | (11,926) | (3,500) | (853) | ||||||||
Purchase of common stock warrant | (257) | ||||||||||
Proceeds on ESOP loan | 704 | ||||||||||
Dividends paid on common stock | (1,023) | (1,187) | (751) | ||||||||
Net cash provided by (used in) financing activities | (34,634) | (44,565) | 13,686 | ||||||||
Net increase (decrease) in cash | 14,259 | (15,409) | 18,672 | ||||||||
Cash and cash equivalents, beginning of period | 40,439 | 55,848 | 40,439 | 55,848 | 37,176 | ||||||
Cash and cash equivalents, end of period | 54,698 | 40,439 | 54,698 | 40,439 | 55,848 | ||||||
HopFed [Member] | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | 2,404 | 2,199 | 3,762 | ||||||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities | |||||||||||
Equity in undistributed earnings of subsidiary | 8,943 | (423) | 817 | ||||||||
Amortization of restricted stock | 190 | 164 | 115 | ||||||||
Increase (decrease) in: | |||||||||||
Current income taxes payable | 11 | 200 | (355) | ||||||||
Accrued expenses | (149) | 280 | (142) | ||||||||
Net cash provided by operating activities | 11,399 | 2,420 | 4,197 | ||||||||
Cash flows for investing activities: | |||||||||||
Net cash flow used in investing activities | 0 | 0 | 0 | ||||||||
Cash flows from financing activities: | |||||||||||
Purchase of preferred stock - treasury | 0 | 0 | 0 | ||||||||
Purchase of common stock - treasury | (11,926) | (3,500) | (853) | ||||||||
Purchase of common stock warrant | (257) | ||||||||||
Proceeds on ESOP loan | 704 | ||||||||||
Dividends paid on common stock | (1,022) | (1,187) | (751) | ||||||||
Net cash provided by (used in) financing activities | (12,244) | (4,687) | (1,861) | ||||||||
Net increase (decrease) in cash | (845) | (2,267) | 2,336 | ||||||||
Cash and cash equivalents, beginning of period | $ 2,932 | $ 5,199 | 2,932 | 5,199 | 2,863 | ||||||
Cash and cash equivalents, end of period | $ 2,087 | $ 2,932 | $ 2,087 | $ 2,932 | $ 5,199 |
Investments in Affiliated Co106
Investments in Affiliated Companies - Additional Information (Detail) | Dec. 31, 2015 |
HopFed Capital Trust [Member] | Majority-Owned Subsidiary, Unconsolidated [Member] | |
Percent of common stock of HopFed Bancorp, Inc. | 100.00% |
Investments in Affiliated Co107
Investments in Affiliated Companies - Summary Balance Sheets (Detail) - Majority-Owned Subsidiary, Unconsolidated [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Asset - investment in subordinated debentures issued by HopFed Bancorp, Inc. | $ 10,310 | $ 10,310 |
Liabilities | 0 | 0 |
Stockholders' equity: | ||
Total stockholders' equity | 10,310 | 10,310 |
Total liabilities and stockholders equity | 10,310 | 10,310 |
Trust Preferred Securities [Member] | ||
Stockholders' equity: | ||
Total stockholders' equity | 10,000 | 10,000 |
Common Stock [Member] | ||
Stockholders' equity: | ||
Total stockholders' equity | $ 310 | $ 310 |
Investments in Affiliated Co108
Investments in Affiliated Companies - Summary Balance Sheets (Parenthetical) (Detail) | Dec. 31, 2015 | Dec. 31, 2014 |
Majority-Owned Subsidiary, Unconsolidated [Member] | Common Stock [Member] | ||
Percent of common stock of HopFed Bancorp, Inc. | 100.00% | 100.00% |
Investments in Affiliated Co109
Investments in Affiliated Companies - Summary Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Equity Method Investments [Line Items] | |||||||||||
Income - interest income from subordinated debentures issued by HopFed Bancorp, Inc. | $ 7,996 | $ 8,012 | $ 7,919 | $ 9,195 | $ 8,294 | $ 8,994 | $ 8,734 | $ 8,658 | $ 33,122 | $ 34,680 | $ 35,857 |
Majority-Owned Subsidiary, Unconsolidated [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Income - interest income from subordinated debentures issued by HopFed Bancorp, Inc. | 354 | 348 | |||||||||
Net income | $ 354 | $ 348 |
Investments in Affiliated Co110
Investments in Affiliated Companies - Summary Statements of Stockholders' Equity (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Dividends: | ||
Total retained earnings | $ 47,124 | $ 45,729 |
Majority-Owned Subsidiary, Unconsolidated [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Beginning balances | 10,310 | |
Retained earnings: | ||
Net income | 354 | 348 |
Dividends: | ||
Trust preferred securities | (343) | |
Common dividends paid to HopFed Bancorp, Inc. | (11) | |
Total retained earnings | 0 | |
Ending balances | 10,310 | 10,310 |
Majority-Owned Subsidiary, Unconsolidated [Member] | Trust Preferred Securities [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Beginning balances | 10,000 | |
Dividends: | ||
Total retained earnings | 0 | |
Ending balances | 10,000 | 10,000 |
Majority-Owned Subsidiary, Unconsolidated [Member] | Common Stock [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Beginning balances | 310 | |
Dividends: | ||
Total retained earnings | 0 | |
Ending balances | 310 | $ 310 |
Majority-Owned Subsidiary, Unconsolidated [Member] | Retained Earnings [Member] | ||
Retained earnings: | ||
Net income | 354 | |
Dividends: | ||
Trust preferred securities | (343) | |
Common dividends paid to HopFed Bancorp, Inc. | (11) | |
Total retained earnings | $ 0 |
Quarterly Results of Operati111
Quarterly Results of Operations - Summarized Unaudited Quarterly Operating Results (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest and dividend income | $ 7,996 | $ 8,012 | $ 7,919 | $ 9,195 | $ 8,294 | $ 8,994 | $ 8,734 | $ 8,658 | $ 33,122 | $ 34,680 | $ 35,857 |
Interest expense | 1,672 | 1,633 | 1,612 | 1,633 | 2,001 | 2,186 | 2,354 | 2,338 | 6,550 | 8,879 | 10,581 |
Net interest income | 6,324 | 6,379 | 6,307 | 7,562 | 6,293 | 6,808 | 6,380 | 6,320 | 26,572 | 25,801 | 25,276 |
Provision for loan losses | 291 | 275 | 270 | 215 | (1,500) | (892) | (261) | 380 | 1,051 | (2,273) | 1,604 |
Net interest income after provision for loan losses | 6,033 | 6,104 | 6,037 | 7,347 | 7,793 | 7,700 | 6,641 | 5,940 | 25,521 | 28,074 | 23,672 |
Noninterest income | 1,885 | 1,936 | 1,868 | 1,913 | 1,904 | 2,393 | 1,945 | 1,598 | 7,602 | 7,840 | 9,372 |
Noninterest expense | 7,188 | 7,553 | 8,234 | 7,470 | 11,582 | 7,563 | 7,447 | 7,324 | 30,445 | 33,916 | 28,638 |
Income (loss) before income tax expense | 730 | 487 | (329) | 1,790 | (1,885) | 2,530 | 1,139 | 214 | |||
Income tax expense (benefit) | 74 | (23) | (212) | 435 | (852) | 577 | 214 | (140) | 274 | (201) | 644 |
Net income | $ 656 | $ 510 | $ (117) | $ 1,355 | $ (1,033) | $ 1,953 | $ 925 | $ 354 | $ 2,404 | $ 2,199 | $ 3,762 |
Basic earnings (loss) per share | $ 0.10 | $ 0.08 | $ (0.02) | $ 0.20 | $ (0.14) | $ 0.27 | $ 0.13 | $ 0.05 | $ 0.38 | $ 0.30 | $ 0.50 |
Diluted earnings (loss) per share | $ 0.10 | $ 0.08 | $ (0.02) | $ 0.20 | $ (0.14) | $ 0.27 | $ 0.13 | $ 0.05 | $ 0.38 | $ 0.30 | $ 0.50 |
Weighted average shares outstanding: | |||||||||||
Basic | 6,328,324 | 6,359,556 | 6,425,687 | 6,732,456 | 7,165,957 | 7,265,597 | 7,376,726 | 7,416,716 | 6,372,277 | 7,306,078 | 7,483,606 |
Diluted | 6,328,324 | 6,359,556 | 6,425,687 | 6,732,456 | 7,165,957 | 7,265,597 | 7,376,726 | 7,416,716 | 6,372,277 | 7,306,078 | 7,483,606 |
Comprehensive Income - Other Co
Comprehensive Income - Other Comprehensive (Loss) Income Included in Stockholders' Equity (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Unrealized holding gains (losses) on: | |||
Available for sale securities, Pre-Tax | $ (1,698) | $ 7,773 | $ (16,012) |
Available for sale securities - OTTI, Pre-Tax | 359 | ||
Derivatives, Pre-Tax | 389 | 359 | 376 |
Reclassification adjustments for gains on available for sale securities, Pre-Tax | (691) | (578) | (1,661) |
Other than temporary impairment, Pre-Tax | 400 | ||
Other comprehensive income, Pre-Tax | (1,641) | 7,554 | (16,897) |
Available for sale securities, tax benefit (expense) | 577 | (2,643) | 5,444 |
Available for sale securities - OTTI, tax benefit (expense) | (122) | ||
Derivatives, tax benefit (expense) | (132) | (122) | (128) |
Reclassification adjustments for gains on available for sale securities, tax benefit (expense) | 235 | 197 | 565 |
Other than temporary impairment, benefit (expense) | (136) | ||
Other comprehensive income, tax benefit (expense) | 558 | 2,568 | 5,745 |
Available for sale securities, net of tax | (1,121) | 5,130 | (10,568) |
Available for sale securities - OTTI, net of tax | 237 | 111 | |
Derivatives, net of tax | 257 | 237 | 248 |
Reclassification adjustments for gains on available for sale securities, net of tax | (456) | (381) | (1,096) |
Other than temporary impairment, net of tax | 264 | ||
Total other comprehensive income (loss) | $ (1,083) | $ 4,986 | $ (11,152) |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ in Thousands | Feb. 12, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividends paid | $ 287 | $ 301 | |
Subsequent Event [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividends paid | $ 2,000 |