Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 07, 2016 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | EASTERN VIRGINIA BANKSHARES INC | |
Entity Central Index Key | 1,047,170 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Trading Symbol | evbs | |
Entity Common Stock, Shares Outstanding | 13,116,600 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,016 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | ||
Assets: | ||||
Cash and due from banks | $ 6,297 | $ 13,451 | [1] | |
Interest bearing deposits with banks | 13,676 | 18,304 | [1] | |
Federal funds sold | [1] | 200 | ||
Securities available for sale, at fair value | 232,925 | 230,943 | [1] | |
Securities held to maturity, at carrying value (fair value of $29,947 and $30,575, respectively) | 28,549 | 29,698 | [1] | |
Restricted securities, at cost | 9,665 | 8,959 | [1] | |
Loans, net of allowance for loan losses of $10,467 and $11,327, respectively | 926,157 | 869,451 | [1] | |
Deferred income taxes, net | 11,188 | 15,060 | [1] | |
Bank premises and equipment, net | 27,914 | 27,836 | [1] | |
Accrued interest receivable | 4,369 | 4,059 | [1] | |
Other real estate owned, net of valuation allowance of $36 and $2, respectively | 1,534 | 520 | [1] | |
Goodwill | 17,081 | 17,085 | [1] | |
Bank owned life insurance | 25,577 | 25,099 | [1] | |
Other assets | 9,964 | 9,719 | [1] | |
Total assets | 1,314,896 | 1,270,384 | [1] | |
Liabilities | ||||
Noninterest-bearing demand accounts | 200,544 | 174,071 | [1] | |
Interest-bearing deposits | 809,746 | 814,648 | [1] | |
Total deposits | 1,010,290 | 988,719 | [1] | |
Federal funds purchased and repurchase agreements | 5,937 | 5,015 | [1] | |
Short-term borrowings | 127,150 | 114,413 | [1] | |
Junior subordinated debt | 10,310 | 10,310 | [1] | |
Senior subordinated debt | 19,098 | 19,022 | [1] | |
Accrued interest payable | 942 | 590 | [1] | |
Other liabilities | 6,524 | 6,040 | [1] | |
Total liabilities | 1,180,251 | 1,144,109 | [1] | |
Shareholders' Equity | ||||
Common stock, $2 par value per share, authorized 50,000,000 shares, issued and outstanding 13,116,600 and 13,029,550 including 177,221 and 121,271 nonvested shares in 2016 and 2015, respectively | 25,879 | 25,817 | [1] | |
Surplus | 49,228 | 48,923 | [1] | |
Retained earnings | 49,978 | 44,941 | [1] | |
Accumulated other comprehensive loss, net | (920) | (3,886) | [1] | |
Total shareholders' equity | 134,645 | 126,275 | [1] | |
Total liabilities and shareholders' equity | 1,314,896 | 1,270,384 | [1] | |
Series B Non-Voting Mandatorily Convertible Non-Cumulative Preferred | ||||
Shareholders' Equity | ||||
Preferred stock value | 10,480 | 10,480 | [1] | |
Total shareholders' equity | $ 10,480 | $ 10,480 | ||
[1] | Derived from audited consolidated financial statements. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Securities held to maturity, Fair Value | $ 29,947 | $ 30,575 |
Loans, allowance for loan losses | 10,467 | 11,327 |
Other real estate owned, valuation allowance | $ 36 | $ 2 |
Preferred stock, par value | $ 2 | $ 2 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, par value | $ 2 | $ 2 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 13,116,600 | 13,029,550 |
Common stock, shares outstanding | 13,116,600 | 13,029,550 |
Nonvested shares | 177,221 | 121,271 |
Series B Non-Voting Mandatorily Convertible Non-Cumulative Preferred | ||
Preferred stock, shares issued | 5,240,192 | 5,240,192 |
Preferred stock, shares outstanding | 5,240,192 | 5,240,192 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Interest and Dividend Income | ||||
Interest and fees on loans | $ 11,150 | $ 10,443 | $ 33,099 | $ 31,016 |
Interest on investments: | ||||
Taxable interest income | 1,406 | 1,173 | 4,375 | 3,560 |
Tax exempt interest income | 16 | 250 | 109 | 778 |
Dividends | 113 | 114 | 355 | 318 |
Interest on deposits with banks | 11 | 4 | 31 | 12 |
Total interest and dividend income | 12,696 | 11,984 | 37,969 | 35,684 |
Interest Expense | ||||
Deposits | 1,078 | 988 | 3,235 | 2,973 |
Federal funds purchased and repurchase agreements | 7 | 9 | 21 | 40 |
Short-term borrowings | 118 | 56 | 358 | 135 |
Junior subordinated debt | 93 | 83 | 273 | 244 |
Senior subordinated debt | 352 | 348 | 1,054 | 612 |
Total interest expense | 1,648 | 1,484 | 4,941 | 4,004 |
Net interest income | 11,048 | 10,500 | 33,028 | 31,680 |
Provision for Loan Losses | 17 | |||
Net interest income after provision for loan losses | 11,048 | 10,500 | 33,011 | 31,680 |
Noninterest Income | ||||
Service charges and fees on deposit accounts | 754 | 745 | 2,221 | 2,081 |
Debit card/ATM fees | 426 | 468 | 1,271 | 1,273 |
Gain on sale of available for sale securities, net | 270 | 71 | 507 | 122 |
Gain on sale of held to maturity securities, net | 10 | 10 | ||
(Loss) on sale of bank premises and equipment | (11) | (9) | (38) | |
Earnings on bank owned life insurance policies | 160 | 156 | 478 | 479 |
Other operating income | 256 | 285 | 621 | 848 |
Total noninterest income | 1,866 | 1,724 | 5,089 | 4,775 |
Noninterest Expenses | ||||
Salaries and employee benefits | 5,843 | 5,394 | 16,577 | 16,405 |
Occupancy and equipment expenses | 1,474 | 1,396 | 4,244 | 4,303 |
Telephone | 216 | 285 | 633 | 692 |
FDIC expense | 207 | 196 | 614 | 622 |
Consultant fees | 127 | 92 | 581 | 981 |
Collection, repossession and other real estate owned | 126 | 209 | 458 | 424 |
Marketing and advertising | 329 | 355 | 1,267 | 1,018 |
Loss (gain) on sale of other real estate owned | 7 | (8) | 10 | 18 |
Impairment losses on other real estate owned | 34 | 34 | 5 | |
Merger and merger related expenses | 224 | |||
Other operating expenses | 1,737 | 1,598 | 5,058 | 4,991 |
Total noninterest expenses | 10,100 | 9,517 | 29,476 | 29,683 |
Income before income taxes | 2,814 | 2,707 | 8,624 | 6,772 |
Income Tax Expense | 815 | 697 | 2,488 | 1,646 |
Net Income | 1,999 | 2,010 | 6,136 | 5,126 |
Effective dividend on Series A Preferred Stock | 386 | |||
Net income available to common shareholders | $ 1,999 | $ 2,010 | $ 6,136 | $ 4,740 |
Net income per common share: basic and diluted | $ 0.10 | $ 0.11 | $ 0.33 | $ 0.26 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 1,999 | $ 2,010 | $ 6,136 | $ 5,126 |
Other comprehensive (loss) income, net of tax: | ||||
Unrealized securities gains arising during period (net of tax, $139, $674, $1,671 and $365, respectively) | 268 | 1,304 | 3,244 | 707 |
Amortization of unrealized losses on securities transferred from available for sale to held to maturity (net of tax, $10, $20, $29 and $53, respectively) | 19 | 40 | 57 | 104 |
Less: reclassification adjustment for securities gains included in net income (net of tax, $92, $28, $172 and $45, respectively) | (178) | (53) | (335) | (87) |
Other comprehensive income | 109 | 1,291 | 2,966 | 724 |
Comprehensive income | $ 2,108 | $ 3,301 | $ 9,102 | $ 5,850 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Unrealized securities gains arising during period, tax | $ 139 | $ 674 | $ 1,671 | $ 365 |
Amortization of unrealized losses on securities transferred from available for sale to held to maturity, tax | 10 | 20 | 29 | 53 |
Reclassification adjustment for securities gains included in net income (loss), tax | $ 92 | $ 28 | $ 172 | $ 45 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Series A Preferred Stock [Member] | [1] | Series B Non-Voting Mandatorily Convertible Non-Cumulative Preferred | Common Stock | Surplus | Retained Earnings | Accumulated Other Comprehensive (Loss) Income [Member] | Total | |
Balance at Dec. 31, 2014 | $ 15,481 | $ 10,480 | $ 25,750 | $ 47,339 | $ 39,290 | $ (4,066) | $ 134,274 | ||
Net income | 5,126 | 5,126 | |||||||
Other comprehensive income | 724 | 724 | |||||||
Cash dividends - preferred stock, Series A | (547) | (547) | |||||||
Cash dividends - preferred stock, Series B | (210) | (210) | |||||||
Cash dividends | (521) | (521) | |||||||
Repurchase of preferred stock | (14,000) | (14,000) | |||||||
Repurchase of stock | (1) | (1) | |||||||
Repurchase of warrants | (1,481) | 1,366 | (115) | ||||||
Stock based compensation | 175 | 175 | |||||||
Director stock grant | 12 | 26 | 38 | ||||||
Restricted common stock vested | 22 | (22) | |||||||
Balance at Sep. 30, 2015 | 10,480 | 25,783 | 48,884 | 43,138 | (3,342) | 124,943 | |||
Balance at Dec. 31, 2015 | 10,480 | 25,817 | 48,923 | 44,941 | (3,886) | 126,275 | [2] | ||
Net income | 6,136 | 6,136 | |||||||
Other comprehensive income | 2,966 | 2,966 | |||||||
Cash dividends - preferred stock, Series B | (314) | (314) | |||||||
Cash dividends | (785) | (785) | |||||||
Repurchase of stock | (3) | (6) | (9) | ||||||
Cancellation of common stock | (1) | (3) | (4) | ||||||
Stock based compensation | 247 | 247 | |||||||
Director stock grant | 35 | 98 | 133 | ||||||
Restricted common stock vested | 31 | (31) | |||||||
Balance at Sep. 30, 2016 | $ 10,480 | $ 25,879 | $ 49,228 | $ 49,978 | $ (920) | $ 134,645 | |||
[1] | For the purposes of this table, Preferred Stock Series A includes the effect of the Warrant (prior to its repurchase by the Company during the second quarter of 2015) issued in connection with the sale of the Preferred Stock Series A and the discount on such preferred stock. | ||||||||
[2] | Derived from audited consolidated financial statements. |
Consolidated Statements of Sha8
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Statement Of Stockholders Equity [Abstract] | ||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.06 | $ 0.04 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Operating Activities: | ||
Net income | $ 6,136 | $ 5,126 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 17 | |
Depreciation and amortization | 1,881 | 1,884 |
Stock based compensation | 247 | 175 |
Deferred taxes | 2,344 | 1,569 |
Amortization of debt issuance costs | 78 | 37 |
Net accretion of certain acquisition related fair value adjustments | (200) | (423) |
Net amortization of premiums and accretion of discounts on investment securities, net | 2,413 | 2,278 |
(Gain) on sale of available for sale securities, net | (507) | (122) |
(Gain) on sale of held to maturity securities, net | (10) | |
Loss on sale of bank premises and equipment | 9 | 38 |
Loss on sale of other real estate owned | 10 | 18 |
Impairment losses on other real estate owned | 34 | 5 |
Loss on LLC investments | 247 | 275 |
Earnings on bank owned life insurance policies | (478) | (479) |
Net change in: | ||
Accrued interest receivable | (310) | (183) |
Other assets | (655) | (1,876) |
Accrued interest payable | 352 | 544 |
Other liabilities | 484 | 443 |
Net cash provided by operating activities | 12,102 | 9,299 |
Investing Activities: | ||
Purchase of securities available for sale | (99,201) | (98,453) |
Purchase of securities held to maturity | (22) | |
Purchase of restricted securities | (8,436) | (7,450) |
Purchases of bank premises and equipment | (1,969) | (3,160) |
Purchases of loans | (16,369) | (19,375) |
Improvements to other real estate owned | (14) | (1) |
Net change in loans | (42,489) | (23,077) |
Proceeds from: | ||
Maturities, calls, and paydowns of securities available for sale | 25,176 | 18,449 |
Maturities, calls, and paydowns of securities held to maturity | 900 | 1,401 |
Sale of securities available for sale | 74,880 | 63,646 |
Sale of securities held to maturity | 531 | |
Sale of restricted securities | 7,730 | 6,722 |
Sale of bank premises and equipment | 1 | 255 |
Sale of other real estate owned | 1,474 | 2,832 |
Net cash (used in) investing activities | (58,317) | (57,702) |
Financing Activities, Net change in: | ||
Demand, interest-bearing demand and savings deposits | 19,656 | 37,693 |
Time deposits | 1,895 | (2,236) |
Federal funds purchased and repurchase agreements | 922 | (6,974) |
Short-term borrowings | 12,737 | 21,157 |
Senior subordinated debt | 20,000 | |
Debt issuance costs | (2) | (1,008) |
Director stock grant | 133 | 38 |
Repurchase of preferred stock, Series A | (14,000) | |
Repurchase of common stock | (9) | (1) |
Repurchase of warrants | (115) | |
Dividends paid - preferred, Series A | (547) | |
Dividends paid - preferred, Series B | (314) | (210) |
Dividends paid - common stock | (785) | (521) |
Net cash provided by financing activities | 34,233 | 53,276 |
Net (decrease) increase in cash and cash equivalents | (11,982) | 4,873 |
Cash and cash equivalents, December 31 | 31,955 | 19,630 |
Cash and cash equivalents, September 30 | 19,973 | 24,503 |
Supplemental disclosure: | ||
Interest paid | 4,589 | 3,460 |
Income taxes paid | 144 | 78 |
Supplemental disclosure of noncash investing and financing activities: | ||
Unrealized gains on securities available for sale | 4,408 | 940 |
Loans transferred to other real estate owned | $ (2,518) | $ (1,249) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1. Summary of Significant Accounting Policies Principles of Consolidation The accompanying unaudited consolidated financial statements of Eastern Virginia Bankshares, Inc. (the “Company”) and its subsidiaries, EVB Statutory Trust I (the “Trust”), which is unconsolidated, and EVB (the “Bank”) and its subsidiaries, are in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q adopted by the Securities and Exchange Commission (“SEC”). Accordingly, these financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. Operating results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 (the “2015 Form 10-K”). The accompanying unaudited consolidated financial statements include the accounts of the Company, the Bank and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. In addition, the Company owns the Trust which is an unconsolidated subsidiary. The subordinated debt owed to the Trust is reported as a liability of the Company. Nature of Operations Eastern Virginia Bankshares, Inc. is a bank holding company that was organized and chartered under the laws of the Commonwealth of Virginia on September 5, 1997 and commenced operations on December 29, 1997. Eastern Virginia Bankshares, Inc. was headquartered in Tappahannock, Virginia until October 2016 at which time it relocated to Glen Allen, Virginia. The Company conducts its primary operations through its wholly-owned bank subsidiary, EVB, which is headquartered in Tappahannock, Virginia. Two of EVB’s three predecessor banks, Bank of Northumberland, Inc. and Southside Bank, were established in 1910. The third bank, Hanover Bank, was established as a de novo bank in 2000. In April 2006, these three banks were merged and the surviving bank was re-branded as EVB. Additionally, the Company acquired Virginia Company Bank (“VCB”) (see Note 2 – Business Combinations) on November 14, 2014 and merged VCB with and into the Bank, with the Bank surviving, thus adding three additional branches to the Bank located in Newport News, Williamsburg, and Hampton. The Bank provides a full range of banking and related financial services to individuals and businesses through its network of retail branches. With twenty-four retail branches, the Bank serves diverse markets that primarily are in the counties of Essex, Gloucester, Hanover, Henrico, King and Queen, King William, Lancaster, Middlesex, New Kent, Northumberland, Southampton, Surry, Sussex and the cities of Colonial Heights, Hampton, Newport News, Richmond and Williamsburg . The Bank also operates a loan production office in Chesterfield County, Virginia, that the Bank opened during the second quarter of 2014. The Bank operates under a state bank charter and as such is subject to regulation by the Virginia State Corporation Commission Bureau of Financial Institutions (the “Bureau”) and the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”). The Bank owns EVB Financial Services, Inc., which in turn has a 100% ownership interest in EVB Investments, Inc. EVB Investments, Inc. is a full-service brokerage firm offering a comprehensive range of investment services. On May 15, 2014, the Bank acquired a 4.9% ownership interest in Southern Trust Mortgage, LLC. Pursuant to an independent contractor agreement with Southern Trust Mortgage, LLC, the Company advises and consults with Southern Trust Mortgage, LLC and facilitates the marketing and brand recognition of their mortgage business. In addition, the Company provides Southern Trust Mortgage, LLC with offices at two retail branches in the Company’s market area and access to office equipment at these locations during normal business hours. For its services, the Company receives fixed monthly compensation from Southern Trust Mortgage, LLC in the amount of $2 thousand, which is adjustable on a quarterly basis. The Bank had a 75% ownership interest in EVB Title, LLC, which primarily sold title insurance to the mortgage loan customers of the Bank and EVB Mortgage, LLC. Effective January 2014, the Bank ceased operations of EVB Title, LLC due to low volume and profitability. On October 1, 2014, the Bank acquired a 6.0% ownership interest in Bankers Title, LLC. Bankers Title, LLC is a multi-bank owned title agency providing a full range of title insurance settlement and related financial services. The Bank has a 2.87% ownership interest in Bankers Insurance, LLC, which primarily sells insurance products to customers of the Bank, and other financial institutions that have an equity interest in the agency. The Bank also has a 100% ownership interest in Dunston Hall LLC, POS LLC, Tartan Holdings LLC and ECU-RE LLC which were formed to hold the title to real estate acquired by the Bank upon foreclosure on property of real estate secured loans. The financial position and operating results of all of these subsidiaries are not significant to the Company as a whole and are not considered principal activities of the Company at this time. The Company’s common stock trades on the NASDAQ Global Select Market under the symbol “EVBS.” Basis of Presentation The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, impairment of loans, impairment of securities, the valuation of other real estate owned (or “OREO”), the projected benefit obligation under the defined benefit pension plan, the valuation of deferred taxes, goodwill impairment and fair value of financial instruments. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of the results of operations in these interim financial statements, have been made. Certain prior year amounts have been reclassified to conform to the 2016 presentation. These reclassifications have no effect on previously reported net income. Recent Accounting Pronouncements In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, “Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” This update is intended to provide guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management is required under the new guidance to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued when preparing financial statements for each interim and annual reporting period. If conditions or events are identified, the ASU specifies the process that must be followed by management and also clarifies the timing and content of going concern footnote disclosures in order to reduce diversity in practice. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2016. Early adoption is permitted. The Company does not expect the adoption of ASU 2014-15 to have a material impact on its consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” The amendments in ASU 2016-01, among other things: 1) require equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; 2) require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; 3) require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables); and 4) eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently assessing the impact that ASU 2016-01 will have on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” Among other things, in the amendments in ASU 2016-02, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: 1) a lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and 2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is currently assessing the impact that ASU 2016-02 will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-07, “Investments – Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting.” The amendments in this ASU eliminate the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. In addition, the amendments in this ASU require that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income (loss) at the date the investment becomes qualified for use of the equity method. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The amendments should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. Early adoption is permitted. The Company does not expect the adoption of ASU 2016-07 to have a material impact on its consolidated financial statements. During March 2016, the FASB issued ASU No. 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Shares-Based Payment Accounting.” The amendments in this ASU simplify several aspects of the accounting for share-based payment award transactions including: a) income tax consequences; b) classification of awards as either equity or liabilities; and c) classification on the statement of cash flows. The amendments are effective for public companies for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company is currently assessing the impact that ASU 2016-09 will have on its consolidated financial statements. During June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The amendments in this ASU, among other things, require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will be required to use additional forward-looking information when determining their credit loss estimates. It is anticipated that many of the loss estimation techniques currently applied will still be permitted, although the inputs to those techniques are expected to change to reflect the full amount of expected credit losses. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The amendments in this ASU are effective for public companies that file reports with the SEC for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company is currently assessing the impact that ASU 2016-13 will have on its consolidated financial statements. During August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The amendments should be applied using a retrospective transition method to each period presented. If retrospective application is impractical for some of the issues addressed by the update, the amendments for those issues would be applied prospectively as of the earliest date practicable. Early adoption is permitted, including adoption in an interim period. The Company does not expect the adoption of ASU 2016-15 to have a material impact on its consolidated financial statements. |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Business Combinations | Note 2. Business Combinations On November 14, 2014, the Company completed its acquisition of VCB. Pursuant to the Agreement and Plan of Reorganization dated May 29, 2014, VCB's common shareholders received for each share of VCB common stock they owned either (i) cash at a rate of $6.25 per share of VCB common stock, or approximately $2.4 million in the aggregate, or (ii) the Company’s common stock at a rate of 0.9259 shares of the Company’s common stock per share of VCB common stock, which totaled approximately $6.7 million based on the Company’s closing common stock price on November 14, 2014 of $6.27 per share. In addition, the Company purchased VCB’s Series A Preferred Stock for $4.3 million. VCB was established in 2005 and was headquartered in Newport News, Virginia. VCB operated three branches, one each in Hampton, Newport News and Williamsburg, Virginia. Additional information regarding this acquisition is included in the Company’s 2015 Form 10-K. The net effect of the amortization and accretion of premiums and discounts associated with the Company’s acquisition accounting adjustments to assets acquired and liabilities assumed from VCB had the following impact on the consolidated statements of income during the three and nine months ended September 30, 2016 and 2015 : Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended September 30, September 30, September 30, September 30, (dollars in thousands) 2016 2015 2016 2015 Loans (1) $ 138 $ 107 $ 383 $ 703 Core deposit intangible (2) (52) (62) (163) (190) Time deposits (3) (4) (25) (20) (90) Net impact to income before income taxes $ 82 $ 20 $ 200 $ 423 (1) Loan discount accretion is included in the “Interest and fees on loans” section of “Interest and Dividend Income” in the consolidated statements of income. (2) Core deposit intangible premium amortization is included in the “Other operating expenses” section of “Noninterest Expenses” in the consolidated statements of income. (3) Time deposit premium amortization is included in the “Deposits” section of “Interest Expense” in the consolidated statements of income. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2016 | |
Investment Securities [Abstract] | |
Investment Securities | Note 3. Investment Securities The amortized cost and estimated fair value, with gross unrealized gains and losses, of investment securities at September 30, 2016 and December 31, 2015 were as follows: (dollars in thousands) September 30, 2016 Gross Gross Amortized Unrealized Unrealized Fair Available for Sale: Cost Gains Losses Value SBA Pool securities $ 66,546 $ 321 $ 343 $ 66,524 Agency residential mortgage-backed securities 27,591 32 80 27,543 Agency commercial mortgage-backed securities 26,845 612 17 27,440 Agency CMO securities 54,230 434 234 54,430 Non agency CMO securities* 47 - - 47 State and political subdivisions 53,873 1,179 136 54,916 Corporate securities 2,000 25 - 2,025 Total $ 231,132 $ 2,603 $ 810 $ 232,925 *The combined unrealized gains on these securities were less than $1. (dollars in thousands) December 31, 2015 Gross Gross Amortized Unrealized Unrealized Fair Available for Sale: Cost Gains Losses Value Obligations of U.S. Government agencies $ 9,404 $ - $ 142 $ 9,262 SBA Pool securities 64,866 25 1,065 63,826 Agency residential mortgage-backed securities 24,250 7 354 23,903 Agency commercial mortgage-backed securities 18,503 - 188 18,315 Agency CMO securities 52,870 130 829 52,171 Non agency CMO securities* 61 - - 61 State and political subdivisions 61,604 303 502 61,405 Corporate securities 2,000 - - 2,000 Total $ 233,558 $ 465 $ 3,080 $ 230,943 * The combined unrealized gains on these securities were less than $1. (dollars in thousands) September 30, 2016 Net Unrealized Losses Gross Gross Amortized Recorded Carrying Unrealized Unrealized Fair Cost in AOCI* Value Gains Losses Value Held to Maturity: Agency CMO securities $ 10,387 $ 42 $ 10,345 $ 265 $ - $ 10,610 State and political subdivisions 18,615 411 18,204 1,133 - 19,337 Total $ 29,002 $ 453 $ 28,549 $ 1,398 $ - $ 29,947 * Represents the net unrealized holding loss at the date of transfer from available for sale to held to maturity, net of any accretion. (dollars in thousands) December 31, 2015 Net Unrealized Losses Gross Gross Amortized Recorded Carrying Unrealized Unrealized Fair Cost in AOCI* Value Gains Losses Value Held to Maturity: Agency CMO securities $ 11,430 $ 59 $ 11,371 $ 305 $ - $ 11,676 State and political subdivisions 18,807 480 18,327 572 - 18,899 Total $ 30,237 $ 539 $ 29,698 $ 877 $ - $ 30,575 *Represents the net unrealized holding loss at the date of transfer from available for sale to held to maturity, net of any accretion. There were no investment securities classified as “Trading” at September 30, 2016 or December 31, 2015 . During the fourth quarter of 2013, the Company transferred investment securities with an amortized cost of $35.5 million, previously designated as “Available for Sale”, to “Held to Maturity” classification. The fair value of those investment securities as of the date of the transfer was $34.5 million, reflecting a gross unrealized loss of $994 thousand. The gross unrealized loss, net of tax at the time of transfer remained in Accumulated Other Comprehensive Income (Loss) and is being accreted over the remaining life of the investment securities as an adjustment to interest income. At September 30, 2016 , the Company’s mortgage-backed investment securities consisted of commercial and residential mortgage-backed investment securities. The Company’s mortgage-backed investment securities are all backed by an Agency of the U.S. government and rated Aaa and AA+ by Moody and S&P, respectively, with no subprime issues. The amortized cost, carrying value and fair value of investment securities at September 30, 2016 , by the earlier of contractual maturity or expected maturity, are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without penalties. (dollars in thousands) September 30, 2016 Available for Sale: Amortized Cost Fair Value Due in one year or less $ 1,833 $ 1,847 Due after one year through five years 91,238 91,567 Due after five years through ten years 117,774 119,346 Due after ten years 20,287 20,165 Total $ 231,132 $ 232,925 (dollars in thousands) September 30, 2016 Held to Maturity: Carrying Value Fair Value Due in one year or less $ 1,009 $ 1,016 Due after one year through five years 24,341 25,504 Due after five years through ten years 2,452 2,653 Due after ten years 747 774 Total $ 28,549 $ 29,947 The following table presents the gross realized gains and losses on the sale of investment securities available for sale and proceeds from the sale of investment securities available for sale during the three and nine months ended September 30, 2016 and 2015 . Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended (dollars in thousands) September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Realized gains (losses): Gross realized gains $ 502 $ 247 $ 874 $ 541 Gross realized (losses) (232) (176) (367) (419) Net realized gains $ 270 $ 71 $ 507 $ 122 Proceeds from sales of investment securities available for sale $ 38,002 $ 43,676 $ 74,880 $ 63,646 Proceeds from maturities, calls and paydowns of investment securities available for sale for the nine months ended September 30, 2016 and 2015 were $ 25.2 million and $18.4 million, respectively. Proceeds from maturities, calls and paydowns of investment securities held to maturity for the nine months ended September 30, 2016 and 2015 were $ 900 thousand and $1. 4 million , respectively. The following table presents the gross realized gains on the sale of investment securities held to maturity and proceeds from the sale of investment securities held to maturity during the three and nine months ended September 30, 2016 and 2015. Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended (dollars in thousands) September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Gross realized gains $ - $ 10 $ - $ 10 Net realized gains $ - $ 10 $ - $ 10 Proceeds from sales of investment securities held to maturity $ - $ 531 $ - $ 531 The Company pledges investment securities to secure public deposits, balances with the Federal Reserve Bank of Richmond (the “Reserve Bank”) and repurchase agreements. Investment securities with an aggregate book value of $ 41.6 million and an aggregate fair value of $ 43.0 million were pledged at September 30, 2016 . Investment securities with both aggregate book and fair values of $88.0 million were pledged at December 31, 2015 . Investment securities in an unrealized loss position at September 30, 2016 , by duration of the period of the unrealized loss, are shown below: September 30, 2016 (dollars in thousands) Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized Description of Investment Securities Value Loss Value Loss Value Loss SBA Pool securities $ 15,880 $ 161 $ 22,131 $ 182 $ 38,011 $ 343 Agency residential mortgage-backed securities 4,159 57 4,333 23 8,492 80 Agency commercial mortgage-backed securities 1,490 17 - - 1,490 17 Agency CMO securities 22,937 188 4,674 46 27,611 234 State and political subdivisions 6,763 96 2,796 40 9,559 136 Total $ 51,229 $ 519 $ 33,934 $ 291 $ 85,163 $ 810 The Company reviews the investment securities portfolio on a quarterly basis to monitor its exposure to other-than-temporary impairment that may result due to adverse economic conditions and associated credit deterioration. A determination as to whether an investment security’s decline in market value is other-than-temporary takes into consideration numerous factors and the relative significance of any single factor can vary by security. Some factors the Company may consider in the other-than-temporary impairment analysis include the length of time the security has been in an unrealized loss position, changes in security ratings, financial condition of the issuer, as well as security and industry specific economic conditions. In addition, the Company may also evaluate payment structure, whether there are defaulted payments or expected defaults, prepayment speeds, and the value of any underlying collateral. For certain investment securities in unrealized loss positions, the Company will enlist independent third-party firms to prepare cash flow analyses to compare the present value of cash flows expected to be collected from the investment security with the amortized cost basis of the investment security. Based on the Company’s evaluation, management does not believe any unrealized losses at September 30, 2016 , represent an other-than-temporary impairment as these unrealized losses are primarily attributable to current financial market conditions for these types of investments, particularly changes in interest rates, and are not attributable to credit deterioration. Interest rates have generally declined since December 31, 2015 , which has caused the fair values of our investments to generally increase thereby reducing the amount of unrealized losses present at that time. At September 30, 2016 , t here were 64 debt investment securities with fair values totaling $85.2 million considered temporarily impaired. Of these debt investment securities, 37 with fair values totaling $51.2 million were in an unrealized loss position of less than 12 months and 27 with fair values totaling $33.9 million were in an unrealized loss position of 12 months or more. Because the Company intends to hold these investments in debt securities until recovery of the amortized cost basis and it is more likely than not that the Company will not be required to sell these investment securities before a recovery of unrealized losses, the Company does not consider these investment securities to be other-than-temporarily impaired at September 30, 2016 and no impairment has been recognized. At September 30, 2016 , there were no equity investment securities in an unrealized loss position. Investment securities in an unrealized loss position at December 31, 2015 , by duration of the period of the unrealized loss, are shown below: December 31, 2015 (dollars in thousands) Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized Description of Investment Securities Value Loss Value Loss Value Loss Obligations of U.S. Government agencies $ 4,848 $ 58 $ 4,414 $ 84 $ 9,262 $ 142 SBA Pool securities 19,573 180 39,700 885 59,273 1,065 Agency residential mortgage-backed securities 9,370 104 9,341 250 18,711 354 Agency commercial mortgage-backed securities 18,315 188 - - 18,315 188 Agency CMO securities 34,075 596 6,340 233 40,415 829 State and political subdivisions 31,415 408 3,840 94 35,255 502 Total $ 117,596 $ 1,534 $ 63,635 $ 1,546 $ 181,231 $ 3,080 The Company’s investment in Federal Home Loan Bank of Atlanta (“FHLB”) stock totaled $6.6 million and $5.9 million at September 30, 2016 and December 31, 2015 , respectively. FHLB stock is generally viewed as a long-term investment and as a restricted investment security, which is carried at cost, because there is no market for the stock other than the FHLBs or member institutions. Therefore, when evaluating FHLB stock for impairment, its value is based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value . Because the FHLB generated positive net income for each quarterly period beginning October 1, 2015, and ending September 30, 2016 , the Company does not consider this investment to be other-than-temporarily impaired at September 30, 2016 and no impairment has been recognized. FHLB stock is included in a separate line item on the consolidated balance sheets (Restricted securities, at cost) and is not part of the Company’s investment securities portfolio. The Company’s restricted securities also include investments in the Reserve Bank and Community Bankers Bank totaling $ 3.0 million at both September 30, 2016 and December 31, 2015, which are carried at cost. |
Loan Portfolio
Loan Portfolio | 9 Months Ended |
Sep. 30, 2016 | |
Loan Portfolio [Abstract] | |
Loan Portfolio | Note 4. Loan Portfolio The following table sets forth the composition of the Company’s loan portfolio in dollar amounts and as a percentage of the Company’s total gross loans at the dates indicated: September 30, 2016 December 31, 2015 (dollars in thousands) Amount Percent Amount Percent Commercial, industrial and agricultural $ 116,747 12.47% $ 98,828 11.22% Real estate - one to four family residential: Closed end first and seconds 217,733 23.24% 232,826 26.43% Home equity lines 119,578 12.77% 116,309 13.20% Total real estate - one to four family residential 337,311 36.01% 349,135 39.63% Real estate - multifamily residential 34,302 3.66% 29,672 3.37% Real estate - construction: One to four family residential 17,788 1.90% 19,495 2.21% Other construction, land development and other land 74,884 8.00% 46,877 5.32% Total real estate - construction 92,672 9.90% 66,372 7.53% Real estate - farmland 11,172 1.19% 11,418 1.30% Real estate - non-farm, non-residential: Owner occupied 190,502 20.34% 187,224 21.27% Non-owner occupied 106,205 11.34% 104,456 11.86% Total real estate - non-farm, non-residential 296,707 31.68% 291,680 33.13% Consumer 32,313 3.45% 19,993 2.27% Other 15,400 1.64% 13,680 1.55% Total loans 936,624 100.00% 880,778 100.00% Less allowance for loan losses (10,467) (11,327) Loans, net $ 926,157 $ 869,451 Deferred costs and (fees), net are included in the table above and totaled $1.7 million and $1.6 million for September 30, 2016 and December 31, 2015 , respectively. The following table presents the aging of the recorded investment in past due loans as of September 30, 2016 by class of loans: (dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Over 90 Days Past Due Total Past Due Total Current* Total Loans Commercial, industrial and agricultural $ - $ 25 $ - $ 25 $ 116,722 $ 116,747 Real estate - one to four family residential: Closed end first and seconds 2,507 664 4,046 7,217 210,516 217,733 Home equity lines 20 138 315 473 119,105 119,578 Total real estate - one to four family residential 2,527 802 4,361 7,690 329,621 337,311 Real estate - multifamily residential - - - - 34,302 34,302 Real estate - construction: One to four family residential 200 15 - 215 17,573 17,788 Other construction, land development and other land - - - - 74,884 74,884 Total real estate - construction 200 15 - 215 92,457 92,672 Real estate - farmland - - - - 11,172 11,172 Real estate - non-farm, non-residential: Owner occupied 49 - 1,654 1,703 188,799 190,502 Non-owner occupied 258 - - 258 105,947 106,205 Total real estate - non-farm, non-residential 307 - 1,654 1,961 294,746 296,707 Consumer 21 - 144 165 32,148 32,313 Other - - - - 15,400 15,400 Total loans $ 3,055 $ 842 $ 6,159 $ 10,056 $ 926,568 $ 936,624 * For purposes of this table only, the "Total Current" column includes loans that are 1-29 days past due. The following table presents the aging of the recorded investment in past due loans as of December 31, 2015 by class of loans: (dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Over 90 Days Past Due Total Past Due Total Current* Total Loans Commercial, industrial and agricultural $ 149 $ - $ 193 $ 342 $ 98,486 $ 98,828 Real estate - one to four family residential: Closed end first and seconds 2,748 1,322 4,647 8,717 224,109 232,826 Home equity lines 1,166 - 250 1,416 114,893 116,309 Total real estate - one to four family residential 3,914 1,322 4,897 10,133 339,002 349,135 Real estate - multifamily residential - - - - 29,672 29,672 Real estate - construction: One to four family residential 11 - 89 100 19,395 19,495 Other construction, land development and other land - - - - 46,877 46,877 Total real estate - construction 11 - 89 100 66,272 66,372 Real estate - farmland - - - - 11,418 11,418 Real estate - non-farm, non-residential: Owner occupied 1,637 - 624 2,261 184,963 187,224 Non-owner occupied - - 676 676 103,780 104,456 Total real estate - non-farm, non-residential 1,637 - 1,300 2,937 288,743 291,680 Consumer 377 4 - 381 19,612 19,993 Other - - - - 13,680 13,680 Total loans $ 6,088 $ 1,326 $ 6,479 $ 13,893 $ 866,885 $ 880,778 *For purposes of this table only, the "Total Current" column includes loans that are 1-29 days past due. The following table presents nonaccrual loans, loans past due 90 days and accruing interest and troubled debt restructurings (accruing) at the dates indicated: (dollars in thousands) September 30, 2016 December 31, 2015 Nonaccrual loans $ 4,729 $ 6,175 Loans past due 90 days and accruing interest 2,594 1,117 Troubled debt restructurings (accruing) 14,590 15,535 At both September 30, 2016 and December 31, 2015 , there were approximately $1.3 million in troubled debt restructurings (“TDRs”) included in nonaccrual loans. The past due status of a loan is based on the contractual due date of the most delinquent payment due. Loans, including impaired loans, are generally classified as nonaccrual if they are past due as to maturity or payment of principal or interest for a period of more than 90 days, unless such loans are well-secured and in the process of collection. Loans greater than 90 days past due may remain on an accrual status if management determines it has adequate collateral to cover the principal and interest. If a loan or a portion of a loan is adversely classified, or is partially charged off, the loan is generally classified as nonaccrual. Additionally, whenever management becomes aware of facts or circumstances that may adversely impact the collectability of principal or interest on loans, it is management’s practice to place such loans on a nonaccrual status immediately, rather than delaying such action until the loans become 90 days past due. When a loan is placed on nonaccrual status, previously accrued and uncollected interest is reversed, and the amortization of related deferred loan fees or costs is suspended. While a loan is classified as nonaccrual and the future collectability of the recorded loan balance is doubtful, collections of interest and principal are generally applied as a reduction to principal outstanding. When the future collectability of the recorded loan balance is expected, interest income may be recognized on a cash basis. In the case where a nonaccrual loan has been partially charged off, recognition of interest on a cash basis is limited to that which would have been recognized on the recorded loan balance at the contractual interest rate. Cash interest receipts in excess of that amount are recorded as recoveries to the allowance for loan losses until prior charge-offs have been fully recovered. These policies are applied consistently across our loan portfolio. A loan (including a TDR) may be returned to accrual status if the borrower has demonstrated a sustained period of repayment performance (typically six months) in accordance with the contractual terms of the loan and there is reasonable assurance the borrower will continue to make payments as agreed. Outstanding principal balance and the carrying amount of loans acquired pursuant to the Company’s acquisition of VCB (or “Acquired Loans”) that were recorded at fair value at the acquisition date and are included in the consolidated balance sheet at September 30, 2016 and December 31, 2015 were as follows: September 30, 2016 December 31, 2015 Acquired Acquired Loans - Acquired Loans - Acquired Purchased Loans - Acquired Purchased Loans - Acquired Credit Purchased Loans - Credit Purchased Loans - (dollars in thousands) Impaired Performing Total Impaired Performing Total Commercial, industrial and agricultural $ 450 $ 2,642 $ 3,092 $ 549 $ 3,476 $ 4,025 Real estate - one to four family residential: Closed end first and seconds 1,133 5,765 6,898 1,116 6,290 7,406 Home equity lines 32 8,739 8,771 32 9,955 9,987 Total real estate - one to four family residential 1,165 14,504 15,669 1,148 16,245 17,393 Real estate - multifamily residential - 1,737 1,737 - 1,988 1,988 Real estate - construction: One to four family residential - 367 367 - 515 515 Other construction, land development and other land 258 2,116 2,374 275 1,910 2,185 Total real estate - construction 258 2,483 2,741 275 2,425 2,700 Real estate - non-farm, non-residential: Owner occupied 4,241 13,205 17,446 4,296 16,528 20,824 Non-owner occupied 1,494 8,458 9,952 1,600 10,847 12,447 Total real estate - non-farm, non-residential 5,735 21,663 27,398 5,896 27,375 33,271 Consumer - 158 158 - 276 276 Other - 645 645 - 800 800 Total loans $ 7,608 $ 43,832 $ 51,440 $ 7,868 $ 52,585 $ 60,453 The following table presents the recorded investment in nonaccrual loans and loans past due 90 days and accruing interest by class at September 30, 2016 and December 31, 2015 : Over 90 Days Past Nonaccrual Due and Accruing September 30, December 31, September 30, December 31, (dollars in thousands) 2016 2015 2016 2015 Commercial, industrial and agricultural $ 66 $ 193 $ - $ - Real estate - one to four family residential: Closed end first and seconds 3,735 4,153 1,134 1,117 Home equity lines 490 425 - - Total real estate - one to four family residential 4,225 4,578 1,134 1,117 Real estate - construction: One to four family residential - 89 - - Total real estate - construction - 89 - - Real estate - non-farm, non-residential: Owner occupied 225 624 1,460 - Non-owner occupied - 676 - - Total real estate - non-farm, non-residential 225 1,300 1,460 - Consumer 213 15 - - Total loans $ 4,729 $ 6,175 $ 2,594 $ 1,117 The Company uses a risk grading system for real estate (including multifamily residential, construction, farmland and non-farm, non-residential) and commercial loans. Loans are graded on a scale from 1 to 9. Non-impaired real estate and commercial loans are assigned an allowance factor which increases with the severity of risk grading. A general description of the characteristics of the risk grades is as follows: Pass Grades · Risk Grade 1 loans have little or no risk and are generally secured by cash or cash equivalents; · Risk Grade 2 loans have minimal risk to well qualified borrowers and no significant questions as to safety; · Risk Grade 3 loans are satisfactory loans with strong borrowers and secondary sources of repayment; · Risk Grade 4 loans are satisfactory loans with borrowers not as strong as risk grade 3 loans but may exhibit a higher degree of financial risk based on the type of business supporting the loan; and · Risk Grade 5 loans are loans that warrant more than the normal level of supervision and have the possibility of an event occurring that may weaken the borrower’s ability to repay. Special Mention · Risk Grade 6 loans have increasing potential weaknesses beyond those at which the loan originally was granted and if not addressed could lead to inadequately protecting the Company’s credit position. Classified Grades · Risk Grade 7 loans are substandard loans and are inadequately protected by the current sound worth or paying capacity of the obligor or the collateral pledged. These have well defined weaknesses that jeopardize the liquidation of the debt with the distinct possibility the Company will sustain some loss if the deficiencies are not corrected; · Risk Grade 8 loans are doubtful of collection and the possibility of loss is high but pending specific borrower plans for recovery, its classification as a loss is deferred until its more exact status is determined; and · Risk Grade 9 loans are loss loans which are considered uncollectable and of such little value that their continuance as a bank asset is not warranted. The Company uses a past due grading system for consumer loans, including one to four family residential first and seconds and home equity lines. The past due status of a loan is based on the contractual due date of the most delinquent payment due. The past due grading of consumer loans is based on the following categories: current, 1-29 days past due, 30-59 days past due, 60-89 days past due and over 90 days past due. The consumer loans are segregated between performing and nonperforming loans. Performing loans are those that have made timely payments in accordance with the terms of the loan agreement and are not past due 90 days or more. Nonperforming loans are those that do not accrue interest, are greater than 90 days past due and accruing interest or considered impaired. Non-impaired consumer loans are assigned an allowance factor which increases with the severity of past due status. This component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the loan portfolio. The allocation methodology applied by the Company includes management’s ongoing review and grading of the loan portfolio into criticized loan categories (defined as specific loans warranting either specific allocation, or a classified status of substandard, doubtful or loss). The allocation methodology focuses on evaluation of several factors, including but not limited to: evaluation of facts and issues related to specific loans, management’s ongoing review and grading of the loan portfolio, consideration of migration analysis tracking movement of loans through past due classifications and delinquency experience on each portfolio category, trends in past due and nonaccrual loans, the level of classified loans, the risk characteristics of the various classifications of loans, changes in the size and character of the loan portfolio, concentrations of loans to specific borrowers or industries, existing economic conditions, the fair value of underlying collateral, and other qualitative and quantitative factors which could affect potential credit losses. Because each of the criteria used is subject to change, the allocation of the allowance for loan losses is made for analytical purposes and is not necessarily indicative of the trend of future loan losses in any particular loan category. The total allowance is available to absorb losses from any segment of the portfolio. In determining the allowance for loan losses, the Company considers its portfolio segments and loan classes to be the same. The following table presents commercial loans by credit quality indicator at September 30, 2016 : Acquired Loans - Purchased Special Credit (dollars in thousands) Pass Mention Substandard Impaired Impaired Total Commercial, industrial and agricultural $ 112,293 $ 2,516 $ 246 $ 1,242 $ 450 $ 116,747 Real estate - multifamily residential 34,302 - - - - 34,302 Real estate - construction: One to four family residential 17,403 133 79 173 - 17,788 Other construction, land development and other land 66,351 2,631 186 5,458 258 74,884 Total real estate - construction 83,754 2,764 265 5,631 258 92,672 Real estate - farmland 10,050 603 - 519 - 11,172 Real estate - non-farm, non-residential: Owner occupied 168,843 8,124 1,909 7,385 4,241 190,502 Non-owner occupied 91,251 1,164 1,426 10,870 1,494 106,205 Total real estate - non-farm, non-residential 260,094 9,288 3,335 18,255 5,735 296,707 Total commercial loans $ 500,493 $ 15,171 $ 3,846 $ 25,647 $ 6,443 $ 551,600 The following table presents commercial loans by credit quality indicator at December 31, 2015 : Acquired Loans - Purchased Special Credit (dollars in thousands) Pass Mention Substandard Impaired Impaired Total Commercial, industrial and agricultural $ 95,440 $ 1,709 $ 291 $ 839 $ 549 $ 98,828 Real estate - multifamily residential 29,672 - - - - 29,672 Real estate - construction: One to four family residential 19,000 220 89 186 - 19,495 Other construction, land development and other land 38,013 1,785 1,242 5,562 275 46,877 Total real estate - construction 57,013 2,005 1,331 5,748 275 66,372 Real estate - farmland 10,396 318 165 539 - 11,418 Real estate - non-farm, non-residential: Owner occupied 162,103 12,206 2,283 6,336 4,296 187,224 Non-owner occupied 86,894 2,130 1,040 12,792 1,600 104,456 Total real estate - non-farm, non-residential 248,997 14,336 3,323 19,128 5,896 291,680 Total commercial loans $ 441,518 $ 18,368 $ 5,110 $ 26,254 $ 6,720 $ 497,970 At September 30, 2016 and December 31, 2015 , the Company did not have any loans classified as Doubtful or Loss. The following table presents consumer loans, including one to four family residential first and seconds and home equity lines, by payment activity at September 30, 2016 : (dollars in thousands) Performing Nonperforming Total Real estate - one to four family residential: Closed end first and seconds $ 207,741 $ 9,992 $ 217,733 Home equity lines 119,038 540 119,578 Total real estate - one to four family residential 326,779 10,532 337,311 Consumer 31,854 459 32,313 Other 15,400 - 15,400 Total consumer loans $ 374,033 $ 10,991 $ 385,024 The following table presents consumer loans, including one to four family residential first and seconds and home equity lines, by payment activity at December 31, 2015 : (dollars in thousands) Performing Nonperforming Total Real estate - one to four family residential: Closed end first and seconds $ 220,016 $ 12,810 $ 232,826 Home equity lines 115,434 875 116,309 Total real estate - one to four family residential 335,450 13,685 349,135 Consumer 19,655 338 19,993 Other 13,678 2 13,680 Total consumer loans $ 368,783 $ 14,025 $ 382,808 A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due, according to the contractual terms of the loan agreement. The Company measures impaired loans based on the present value of expected future cash flows discounted at the effective interest rate of the loan or, as a practical expedient, at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. The Company maintains a valuation allowance to the extent that the measure of the impaired loan is less than the recorded investment. TDRs are considered impaired loans. TDRs occur when we agree to modify the original terms of a loan by granting a concession due to the deterioration in the financial condition of the borrower. These concessions can be temporary and are made in an attempt to avoid foreclosure and with the intent to restore the loan to a performing status once sufficient payment history can be demonstrated. These concessions could include, without limitation, rate reductions to below market rates, payment deferrals, forbearance, and, in some cases, forgiveness of principal or interest. At the time of a TDR, the loan is placed on nonaccrual status. A loan (including a TDR) may be returned to accrual status if the borrower has demonstrated a sustained period of repayment performance (typically six months) in accordance with the contractual terms of the loan and there is reasonable assurance the borrower will continue to make payments as agreed. The following table presents a rollforward of the Company’s allowance for loan losses for the nine months ended September 30, 2016 : Beginning Ending Balance Balance (dollars in thousands) January 1, 2016 Charge-offs Recoveries Provision September 30, 2016 Commercial, industrial and agricultural $ 1,894 $ (68) $ 78 $ 444 $ 2,348 Real estate - one to four family residential: Closed end first and seconds 1,609 (658) 455 (71) 1,335 Home equity lines 795 (431) 20 205 589 Total real estate - one to four family residential 2,404 (1,089) 475 134 1,924 Real estate - multifamily residential 78 - - 5 83 Real estate - construction: One to four family residential 295 - 5 (95) 205 Other construction, land development and other land 2,423 - 1 288 2,712 Total real estate - construction 2,718 - 6 193 2,917 Real estate - farmland 272 - - (189) 83 Real estate - non-farm, non-residential: Owner occupied 1,964 (208) 63 (449) 1,370 Non-owner occupied 1,241 (90) 61 (569) 643 Total real estate - non-farm, non-residential 3,205 (298) 124 (1,018) 2,013 Consumer 287 (104) 31 260 474 Other 469 (58) 26 188 625 Total $ 11,327 $ (1,617) $ 740 $ 17 $ 10,467 The following table presents a rollforward of the Company’s allowance for loan losses for the nine months ended September 30, 2015 : Beginning Ending Balance Balance (dollars in thousands) January 1, 2015 Charge-offs Recoveries Provision September 30, 2015 Commercial, industrial and agricultural $ 1,168 $ (181) $ 39 $ 535 $ 1,561 Real estate - one to four family residential: Closed end first and seconds 1,884 (622) 87 469 1,818 Home equity lines 1,678 (160) 7 (675) 850 Total real estate - one to four family residential 3,562 (782) 94 (206) 2,668 Real estate - multifamily residential 89 - - (6) 83 Real estate - construction: One to four family residential 235 (102) 3 210 346 Other construction, land development and other land 2,670 - 1 45 2,716 Total real estate - construction 2,905 (102) 4 255 3,062 Real estate - farmland 144 - - 141 285 Real estate - non-farm, non-residential: Owner occupied 2,416 (139) 1 (214) 2,064 Non-owner occupied 1,908 - - (567) 1,341 Total real estate - non-farm, non-residential 4,324 (139) 1 (781) 3,405 Consumer 305 (34) 43 (12) 302 Other 524 (52) 26 74 572 Total $ 13,021 $ (1,290) $ 207 $ - $ 11,938 The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio class based on impairment method as of September 30, 2016 : Allowance allocated to loans: Total Loans: Acquired Acquired Individually Collectively loans - Individually Collectively loans - evaluated evaluated purchased evaluated evaluated purchased for for credit for for credit (dollars in thousands) impairment impairment impaired Total impairment impairment impaired Total Commercial, industrial and agricultural $ 1,014 $ 1,334 $ - $ 2,348 $ 1,242 $ 115,055 $ 450 $ 116,747 Real estate - one to four family residential: Closed end first and seconds 154 1,164 17 1,335 5,946 210,654 1,133 217,733 Home equity lines 50 539 - 589 225 119,321 32 119,578 Total real estate - one to four family residential 204 1,703 17 1,924 6,171 329,975 1,165 337,311 Real estate - multifamily residential - 83 - 83 - 34,302 - 34,302 Real estate - construction: One to four family residential 58 147 - 205 173 17,615 - 17,788 Other construction, land development and other land 1,402 1,310 - 2,712 5,458 69,168 258 74,884 Total real estate - construction 1,460 1,457 - 2,917 5,631 86,783 258 92,672 Real estate - farmland 42 41 - 83 519 10,653 - 11,172 Real estate - non-farm, non-residential: Owner occupied 470 900 - 1,370 7,385 178,876 4,241 190,502 Non-owner occupied 187 456 - 643 10,870 93,841 1,494 106,205 Total real estate - non-farm, non-residential 657 1,356 - 2,013 18,255 272,717 5,735 296,707 Consumer 72 402 - 474 315 31,998 - 32,313 Other - 625 - 625 - 15,400 - 15,400 Total $ 3,449 $ 7,001 $ 17 $ 10,467 $ 32,133 $ 896,883 $ 7,608 $ 936,624 The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio class based on impairment method as of December 31, 2015 : Allowance allocated to loans: Total Loans: Acquired Acquired Individually Collectively loans - Individually Collectively loans - evaluated evaluated purchased evaluated evaluated purchased for for credit for for credit (dollars in thousands) impairment impairment impaired Total impairment impairment impaired Total Commercial, industrial and agricultural $ 562 $ 1,332 $ - $ 1,894 $ 839 $ 97,440 $ 549 $ 98,828 Real estate - one to four family residential: Closed end first and seconds 517 1,092 - 1,609 8,163 223,547 1,116 232,826 Home equity lines 265 530 - 795 625 115,652 32 116,309 Total real estate - one to four family residential 782 1,622 - 2,404 8,788 339,199 1,148 349,135 Real estate - multifamily residential - 78 - 78 - 29,672 - 29,672 Real estate - construction: One to four family residential 67 228 - 295 186 19,309 - 19,495 Other construction, land development and other land 1,263 1,160 - 2,423 5,562 41,040 275 46,877 Total real estate - construction 1,330 1,388 - 2,718 5,748 60,349 275 66,372 Real estate - farmland 210 62 - 272 539 10,879 - 11,418 Real estate - non-farm, non-residential: Owner occupied 824 1,140 - 1,964 6,336 176,592 4,296 187,224 Non-owner occupied 810 431 - 1,241 12,792 90,064 1,600 104,456 Total real estate - non-farm, non-residential 1,634 1,571 - 3,205 19,128 266,656 5,896 291,680 Consumer 88 199 - 287 338 19,655 - 19,993 Other - 469 - 469 2 13,678 - 13,680 Total $ 4,606 $ 6,721 $ - $ 11,327 $ 35,382 $ 837,528 $ 7,868 $ 880,778 The following table presents loans individually evaluated for impairment by class of loans as of September 30, 2016 : Recorded Recorded Unpaid Investment Investment Average Interest Recorded Principal With No With Related Recorded Income (dollars in thousands) Investment Balance Allowance Allowance Allowance Investment Recognized Commercial, industrial and agricultural $ 1,242 $ 1,244 $ 66 $ 1,176 $ 1,014 $ 970 $ 48 Real estate - one to four family residential: Closed end first and seconds 5,946 6,296 3,164 2,782 154 7,010 255 Home equity lines 225 225 175 50 50 521 2 Total real estate - one to four family residential 6,171 6,521 3,339 2,832 204 7,531 257 Real estate - construction: One to four family residential 173 173 17 156 58 179 6 Other construction, land development and other land 5,458 5,458 - 5,458 1,402 5,500 194 Total real estate - construction 5,631 5,631 17 5,614 1,460 5,679 200 Real estate - farmland 519 522 262 257 42 528 25 Real estate - non-farm, non-residential: Owner occupied 7,385 7,386 5,725 1,660 470 5,775 296 Non-owner occupied 10,870 10,870 9,580 1,290 187 12,368 413 Total real estate - non-farm, non-residential 18,255 18,256 15,305 2,950 657 18,143 709 Consumer 315 328 5 310 72 326 13 Total loans* $ 32,133 $ 32,502 $ 18,994 $ 13,139 $ 3,449 $ 33,177 $ 1,252 * PCI loans are excluded from this table. The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2015 : Recorded Recorded Unpaid Investment Investment Average Interest Recorded Principal With No With Related Recorded Income (dollars in thousands) Investment Balance Allowance Allowance Allowance Investment Recognized Commercial, industrial and agricultural $ 839 $ 839 $ - $ 839 $ 562 $ 753 $ 49 Real estate - one to four family residential: Closed end first and seconds 8,163 8,530 3,981 4,182 517 8,386 416 Home equity lines 625 625 175 450 265 521 16 Total real estate - one to four family residential 8,788 9,155 4,156 4,632 782 8,907 432 Real estate - construction: One to four family residential 186 186 20 166 67 235 8 Other construction, land development and other land 5,562 5,562 - 5,562 1,263 5,611 260 Total real estate - construction 5,748 5,748 20 5,728 1,330 5,846 268 Real estate - farmland 539 541 - 539 210 167 36 Real estate - non-farm, non-residential: Owner occupied 6,336 6,336 3,506 2,830 824 8,995 292 Non-owner occupied 12,792 12,792 7,686 5,106 810 11,312 595 Total real estate - non-farm, non-residential 19,128 19,128 11,192 7,936 1,634 20,307 887 Consumer 338 350 12 326 88 352 19 Other 2 2 2 - - 4 - Total loans* $ 35,382 $ 35,763 $ 15,382 $ 20,000 $ 4,606 $ 36,336 $ 1,691 *PCI loans are excluded from this table. Determining the fair value of purchased credit-impaired (“PCI”) loans required the Company to estimate cash flows expected to result from those loans and to discount those cash flows at appropriate rates of interest. For such loans, the excess of the cash flows expected at acquisition over the estimated fair value is recognized as interest income over the remaining lives of the loans and is called the accretable yield. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is the nonaccretable difference and is not recorded. In accordance with U.S. GAAP, the Company did not “carry over” any allowances for loan losses that were reserved for the VCB loan portfolio prior to the Company’s acquisition of VCB. PCI loans had unpaid principal balances of $8.5 million and $8.8 million and recorded carrying values of $7.6 million and $7.9 million at September 30, 2016 and December 31, 2015 , respectively. The following table presents a summary of the changes in the accretable yield of the PCI loan portfolio for the periods indicated: Three months ended Nine months ended September 30, 2016 September 30, 2016 (dollars in thousands) Accretable Yield Accretable Yield Balance at beginning of period $ 1,114 $ 1,280 Accretion (127) (381) Reclassification of nonaccretable difference due to improvement in expected cash flows 24 56 Other changes, net (11) 45 Balance at end of period $ 1,000 $ 1,000 Three months ended Nine months ended September 30, 2015 September 30, 2015 (dollars in thousands) Accretable Yield Accretable Yield Balance at beginning of period $ 925 $ 1,131 Accretion (110) (316) Reclassification of nonaccretable difference due to improvement in expected cash flows - - Other changes, net - - Balance at end of period $ 815 $ 815 The following table presents, by loan class, information related to loans modified as TDRs during the three months ended September 30, 2016 and 2015 : Three Months Ended September 30, 2016 Three Months Ended September 30, 2015 Pre- Post- Pre- Post- Modification Modification Modification Modification Number of Recorded Recorded Number of Recorded Recorded (dollars in thousands) Loans Balance Balance* Loans Balance Balance* Real estate - non-farm, non-residential: Owner occupied 1 $ 32 $ 32 - $ - $ - Total 1 $ 32 $ 32 - $ - $ - * The period end balances are inclusive of all partial paydowns and charge-offs since the modification date. Loans modified as TDRs that were fully paid down, charged-off, or foreclosed upon by period end are not reported. The following table presents, by loan class, information related to loans modified as TDRs during the nine months ended September 30, 2016 and 2015 : Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 Pre- Post- Pre- Post- Modification Modification Modification Modification Number of Recorded Recorded Number of Recorded Recorded (dollars in thousands) Loans Balance Balance* Loans Balance Balance* Commercial, industrial and agricultural 1 $ 68 $ 68 - $ - $ - Real estate - one to four family residential: Closed end first and seconds 5 640 640 - - - Real estate - non-farm, non-residential: Owner occupied 1 32 32 - - - Total 7 $ 740 $ 740 - $ - $ - *The period end balances are inclusive of all partial paydowns and charge-offs since the modification date. Loans modified as TDRs that were fully paid down, charged-off, or foreclosed upon by period end are not reported. The following tables present, by loan class, information related to the loans modified as TDRs that subsequently defaulted (i.e., 90 days or more past due following a modification) during the three and nine months ended September 30, 2016 and 2015 and were modified as TDRs within the 12 months prior to default: Three Months Ended Three Months Ended September 30, 2016 September 30, 2015 Number of Recorded Number of Recorded (dollars in thousands) Loans Balance Loans Balance Real estate - one to four family residential: Closed end first and seconds 1 $ 39 - $ - Total 1 $ 39 - $ - Nine Months Ended Nine Months Ended September 30, 2016 September 30, 2015 Number of Recorded Number of Recorded (dollars in thousands) Loans Balance Loans Balance Real estate - one to four family residential: Closed end first and seconds 2 $ 389 1 $ 68 Total 2 $ 389 1 $ 68 At September 30, 2016 , $1.5 million in foreclosed residential real estate properties were included in OREO, and $1.3 million in residential real estate loans were in the process of foreclosure. |
Deferred Income Taxes
Deferred Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Deferred Income Taxes [Abstract] | |
Deferred Income Taxes | Note 5. Deferred Income Taxes As of September 30, 2016 and December 31, 2015 , the Company had recorded net deferred income tax assets of approximately $ 11.2 million and $15.1 million, respectively. The realization of deferred income tax assets is assessed quarterly and a valuation allowance is recorded if it is “more likely than not” that all or a portion of the deferred tax asset will not be realized. “More likely than not” is defined as greater than a 50% chance. Management considers all available evidence, both positive and negative, to determine whether, based on the weight of that evidence, a valuation allowance is needed. Management’s assessment is primarily dependent on historical taxable income and projections of future taxable income, which are directly related to the Company’s core earnings capacity and its prospects to generate core earnings in the future. Projections of core earnings and taxable income are inherently subject to uncertainty and estimates that may change given the uncertain economic outlook, banking industry conditions and other factors. Further, management has considered future reversals of existing taxable temporary differences and limited, prudent and feasible tax-planning strategies, such as changes in investment security income (tax-exempt to taxable), additional sales of loans and sales of branches/buildings with an appreciated asset value over the tax basis. Based upon an analysis of available evidence, management has determined that it is “more likely than not” that the Company’s deferred income tax assets as of September 30, 2016 and December 31, 2015 will be fully realized and therefore no valuation allowance to the Company’s deferred income tax assets was recorded. However, the Company can give no assurance that in the future its deferred income tax assets will not be impaired because such determination is based on projections of future earnings and the possible effect of certain transactions which are subject to uncertainty and based on estimates that may change due to changing economic conditions and other factors. Due to the uncertainty of estimates and projections, it is possible that the Company will be required to record adjustments to the valuation allowance in future reporting periods. The Company’s ability to realize its deferred income tax assets may be limited if the Company experiences an ownership change as defined by Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”). For additional information see Part I, Item 1A. “Risk Factors” included in the Company’s 2015 Form 10-K. |
Bank Premises and Equipment
Bank Premises and Equipment | 9 Months Ended |
Sep. 30, 2016 | |
Bank Premises and Equipment [Abstract] | |
Bank Premises and Equipment | Note 6. Bank Premises and Equipment Bank premises and equipment are summarized as follows: (dollars in thousands) September 30, 2016 December 31, 2015 Land and improvements $ 6,872 $ 6,837 Buildings and leasehold improvements 28,724 28,487 Furniture, fixtures and equipment 20,797 20,385 Construction in progress 2,145 1,136 58,538 56,845 Less accumulated depreciation (30,624) (29,009) Net balance $ 27,914 $ 27,836 Depreciation and amortization of bank premises and equipment for both the nine months ended September 30, 2016 and 2015 amounted to $1.9 million . |
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2016 | |
Borrowings [Abstract] | |
Borrowings | Note 7. Borrowings Federal funds purchased and repurchase agreements. The Company has unsecured lines of credit with SunTrust Bank, Community Bankers Bank and Pacific Coast Bankers Bank for the purchase of federal funds in the amount of $20.0 million, $15.0 million and $5.0 million, respectively. These lines of credit have a variable rate based on the lending bank’s daily federal funds sold rate and are due on demand. Repurchase agreements are secured transactions and generally mature the day following the day sold. Customer repurchases are standard transactions that involve a Bank customer instead of a wholesale bank or broker. The Company offers this product as an accommodation to larger retail and commercial customers that request safety for their funds beyond the Federal Deposit Insurance Corporation (“FDIC”) deposit insurance limits. The Company does not use or have any open repurchase agreements with broker-dealers. The tables below present selected information on federal funds purchased and repurchase agreements during the nine months ended September 30, 2016 and the year ended December 31, 2015 : Federal funds purchased (dollars in thousands) September 30, 2016 December 31, 2015 Balance outstanding at period end $ - $ - Maximum balance at any month end during the period $ 2,000 $ 2,440 Average balance for the period $ 57 $ 63 Weighted average rate for the period 0.93% 0.72% Weighted average rate at period end 0.00% 0.00% Repurchase agreements (dollars in thousands) September 30, 2016 December 31, 2015 Balance outstanding at period end $ 5,937 $ 5,015 Maximum balance at any month end during the period $ 11,942 $ 12,392 Average balance for the period $ 5,983 $ 8,002 Weighted average rate for the period 0.47% 0.57% Weighted average rate at period end 0.47% 0.47% Short-term borrowings. Short-term borrowings consist of advances from the FHLB, which are secured by a blanket floating lien on all qualifying closed-end and revolving open-end loans that are secured by one to four family residential properties. Short-term advances from the FHLB at September 30, 2016 consisted of $13.1 million using a daily rate credit, which is due on demand, and $114.1 million in fixed rate one month advances. Short-term advances from the FHLB at December 31, 2015 consisted of $114.4 million in fixed rate one month advances. Outstanding accrued interest at September 30, 2016 and December 31, 2015 totaled $28 thousand and $14 thousand, respectively. The table below presents selected information on short-term borrowings during the nine months ended September 30, 2016 and the year ended December 31, 2015 : Short-term borrowings (dollars in thousands) September 30, 2016 December 31, 2015 Balance outstanding at period end $ 127,150 $ 114,413 Maximum balance at any month end during the period $ 127,150 $ 114,413 Average balance for the period $ 114,289 $ 89,580 Weighted average rate for the period 0.42% 0.22% Weighted average rate at period end 0.41% 0.32% Long-term borrowings. From time to time, the Company may obtain long-term borrowings from the FHLB, which consist of advances from the FHLB that are secured by a blanket floating lien on all qualifying closed-end and revolving open-end loans that are secured by one to four family residential properties. At September 30, 2016 and December 31, 2015 , the Company had no long-term FHLB advances outstanding. The Company’s line of credit with the FHLB can equal up to 30% of the Company’s gross assets or approximately $388.3 million at September 30, 2016 . This line of credit totaled $225.3 million with approximately $98.2 million available at September 30, 2016 . As of September 30, 2016 and December 31, 2015 , loans with a carrying value of $303.3 million and $307.2 million, respectively, are pledged to the FHLB as collateral for borrowings. Additional loans are available that can be pledged as collateral for future borrowings from the FHLB above the current lendable collateral value. |
Net Income Per Common Share
Net Income Per Common Share | 9 Months Ended |
Sep. 30, 2016 | |
Net Income Per Common Share [Abstract] | |
Net Income Per Common Share | Note 8. Net Income Per Common Share The Company applies the two-class method of computing basic and diluted net income per common share. Under the two-class method, net income per common share is determined for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Based on FASB guidance, the Company considers its Series B Preferred Stock (defined below) to be a participating security. FASB guidance requires that all outstanding unvested share-based payment awards that contain voting rights and rights to nonforfeitable dividends participate in undistributed earnings with common shareholders. Accordingly, the weighted average number of shares of the Company’s common stock used in the calculation of basic and diluted net income per common share includes unvested shares of the Company’s outstanding restricted common stock. The following tables show the computation of basic and diluted net income per common share for the periods presented: Three Months Ended (dollars in thousands, except share and per share amounts) September 30, 2016 September 30, 2015 Basic Net Income Per Common Share Net income available to common shareholders $ 1,999 $ 2,010 Less: Net income allocated to participating securities, Series B Preferred Stock 571 577 Net income allocated to common shareholders $ 1,428 $ 1,433 Weighted average common shares outstanding for basic net income per common share 13,105,923 13,029,550 Basic net income per common share $ 0.10 $ 0.11 Diluted Net Income Per Common Share Net income available to common shareholders $ 1,999 $ 2,010 Weighted average common shares outstanding for basic net income per common share 13,105,923 13,029,550 Effect of dilutive securities, stock options - - Effect of dilutive securities, Series B Preferred Stock 5,240,192 5,240,192 Weighted average common shares outstanding for diluted net income per common share 18,346,115 18,269,742 Diluted net income per common share $ 0.10 $ 0.11 Nine Months Ended (dollars in thousands, except share and per share amounts) September 30, 2016 September 30, 2015 Basic Net Income Per Common Share Net income available to common shareholders $ 6,136 $ 4,740 Less: Net income allocated to participating securities, Series B Preferred Stock 1,755 1,361 Net income allocated to common shareholders $ 4,381 $ 3,379 Weighted average common shares outstanding for basic net income per common share 13,079,989 13,013,005 Basic net income per common share $ 0.33 $ 0.26 Diluted Net Income Per Common Share Net income available to common shareholders $ 6,136 $ 4,740 Weighted average common shares outstanding for basic net income per common share 13,079,989 13,013,005 Effect of dilutive securities, stock options - - Effect of dilutive securities, Series B Preferred Stock 5,240,192 5,240,192 Weighted average common shares outstanding for diluted net income per common share 18,320,181 18,253,197 Diluted net income per common share $ 0.33 $ 0.26 At September 30, 2016 and 2015 , options to acquire 65,775 and 71,525 shares of common stock, respectively, were not included in computing diluted net income per common share for the three and nine months ended September 30, 2016 and 2015 because their effects were anti-dilutive. On June 12, 2013, the Company issued 5,240,192 shares of non-voting mandatorily convertible non-cumulative preferred stock, Series B (the “Series B Preferred Stock”) through private placements to certain investors. Each share of Series B Preferred Stock can, under certain limited circumstances as set forth in the Company’s articles of incorporation, be converted into one share of the Company’s common stock, and is therefore reflected in the dilutive weighted average common shares outstanding. For more information related to the conversion rights of these preferred shares, see Note 12 – Preferred Stock and Warrant. Additionally, the impact of warrants to acquire shares of the Company’s common stock that were issued to the U.S. Department of the Treasury (“Treasury”) in connection with the Company’s participation in the Capital Purchase Program is not included, as the warrants were anti-dilutive. As previously disclosed, these warrants were repurchased by the Company during May 2015. For additional information on preferred stock warrants, see Note 12 – Preferred Stock and Warrant. |
Stock Based Compensation Plans
Stock Based Compensation Plans | 9 Months Ended |
Sep. 30, 2016 | |
Stock Based Compensation Plans [Abstract] | |
Stock Based Compensation Plans | Note 9. Stock Based Compensation Plans On September 21, 2000, the Company adopted the Eastern Virginia Bankshares, Inc. 2000 Stock Option Plan (the “2000 Plan”) to provide a means for selected key employees and directors to increase their personal financial interest in the Company, thereby stimulating their efforts and strengthening their desire to remain with the Company. Under the 2000 Plan, up to 400,000 shares of Company common stock could be granted in the form of stock options. On April 17, 2003, the shareholders approved the Eastern Virginia Bankshares, Inc. 2003 Stock Incentive Plan, amending and restating the 2000 Plan (the “2003 Plan”) and still authorizing the issuance of up to 400,000 shares of common stock under the plan, but expanding the award types available under the plan to include stock options, stock appreciation rights, common stock, restricted stock and phantom stock. No additional awards may be granted under the 2003 Plan. Any awards previously granted under the 2003 Plan that were outstanding as of April 17, 2013 remain outstanding and will vest in accordance with their regular terms. On April 19, 2007, the Company’s shareholders approved the Eastern Virginia Bankshares, Inc. 2007 Equity Compensation Plan (the “2007 Plan”) to enhance the Company’s ability to recruit and retain officers, directors, employees, consultants and advisors with ability and initiative and to encourage such persons to have a greater financial interest in the Company. Under the 2007 Plan, the Company could issue up to 400,000 additional shares of common stock pursuant to grants of stock options, stock appreciation rights, common stock, restricted stock, performance shares, incentive awards and stock units. No additional awards may be granted under the 2007 Plan. Any awards previously granted under the 2007 Plan that were outstanding as of May 19, 2016 remain outstanding and will vest in accordance with their regular terms. On May 19, 2016, the Company’s shareholders approved the Eastern Virginia Bankshares, Inc. 2016 Equity Compensation Plan (the “2016 Plan”) to promote the success of the Company by providing incentives to key employees, non-employee directors, consultants and advisors to associate their personal interests with the long-term financial success of the Company and with growth in shareholder value consistent with the Company’s risk management practices. The 2016 Plan authorizes the Company to issue up to 500,000 additional shares of common stock pursuant to stock options, restricted stock units, stock appreciation rights, stock awards, performance units and performance cash awards. There were 484,232 shares still available to be granted as awards under the 2016 Plan as of September 30, 2016 . Accounting standards require companies to recognize the cost of employee services received in exchange for awards of equity instruments, such as stock options, based on the fair value of those awards at the date of grant. Accounting standards also require that new awards to employees eligible for accelerated vesting at retirement prior to the awards becoming fully vested be recognized as compensation cost over the period through the date that the employee first becomes eligible to retire and is no longer required to provide service to earn the award. Stock option compensation expense is the estimated fair value of options granted, amortized on a straight-line basis over the requisite service period for each stock option award. There were no stock options granted or exercised in the nine months ended September 30, 2016 and 2015 . There was no remaining unrecognized compensation expense related to stock options at September 30, 2016 , and there was no stock option compensation expense for three and nine months ended September 30, 2016 and 2015 . A summary of the Company’s stock option activity and related information is as follows: Remaining Aggregate Options Weighted Average Contractual Life Intrinsic Value* Outstanding Exercise Price (in years) (in thousands) Stock options outstanding at December 31, 2015 67,525 $ 18.12 Forfeited (1,750) 20.07 Stock options outstanding at September 30, 2016 65,775 $ 18.07 0.87 $ - Stock options exercisable at September 30, 2016 65,775 $ 18.07 0.87 $ - *Intrinsic value is the amount by which the fair value of the underlying common stock exceeds the exercise price of a stock option on exercise date. The table below summarizes information concerning stock options outstanding and exercisable at September 30, 2016 : Stock Options Outstanding and Exercisable Exercise Number Weighted Average Price Outstanding Remaining Term $ 21.16 27,775 0.00 years * $ 19.25 19,000 1.00 year $ 12.36 19,000 2.00 years $ 18.07 65,775 0.87 years * These options expired on October 1, 2016. On April 29, 2016, the Company granted 6,500 shares of restricted stock under the 2007 Plan to various senior officers of the Bank. All of the shares are subject to time vesting over a one-year period and will vest on April 29, 2017. On March 24, 2016, the Company granted 65,000 shares of restricted stock under the 2007 Plan to its executive officers. Fifty percent (50%) of the shares are subject to time vesting in five equal annual installments beginning on March 31, 2017. The remaining fifty percent (50%) of the shares are subject to performance vesting and will vest on March 31, 2019 to the extent certain financial performance requirements for fiscal year 2018 are met. On March 19, 2015, the Company granted 45,000 shares of restricted stock under the 2007 Plan to its executive officers. Fifty percent (50%) of the shares are subject to time vesting in five equal annual installments beginning on March 31, 2016. The remaining fifty percent (50%) of the shares are subject to performance vesting and will vest on March 31, 2018 to the extent certain financial performance requirements for fiscal year 2017 are met. On October 15, 2014, the Company granted 42,500 shares of restricted stock under the 2007 Plan to its executive officers. Fifty percent (50%) of the shares are subject to time vesting in five equal annual installments beginning on March 31, 2015. The remaining fifty percent (50%) of the shares are subject to performance vesting and will vest on March 31, 2017 to the extent certain financial performance requirements for fiscal year 2016 are met. For the three and nine months ended September 30, 2016 , restricted stock compensation expense was $95 thousand and $247 thousand, respectively, compared to restricted stock compensation expense of $61 thousand and $175 thousand, respectively, for the same periods in 2015 , and in each case was included in salaries and employee benefits expense in the consolidated statements of income. Restricted stock compensation expense is accounted for using the fair value of the Company’s common stock on the date the restricted shares were awarded, which was $7.00 per share for the April 29, 2016 awards, $6.80 per share for the March 24, 2016 awards, $6.28 per share for the March 19, 2015 awards and $6.10 per share for the October 15, 2014 awards. A summary of the status of the Company’s nonvested shares in relation to the Company’s restricted stock awards as of September 30, 2016 , and changes during the nine months ended September 30, 2016 , is presented below; the weighted average price is the weighted average fair value at the date of grant: Weighted-Average Shares Price Nonvested as of December 31, 2015 121,271 $ 6.01 Granted 71,500 6.82 Vested (15,550) 5.11 Nonvested as of September 30, 2016 177,221 $ 6.42 At September 30, 2016 , there was $733 thousand of total unrecognized compensation expense related to restricted stock awards. This unearned compensation is being amortized over the remaining vesting period for the time and performance based shares. |
Employee Benefit Plan - Pension
Employee Benefit Plan - Pension | 9 Months Ended |
Sep. 30, 2016 | |
Employee Benefit Plan - Pension [Abstract] | |
Employee Benefit Plan - Pension | Note 10. Employee Benefit Plan – Pension The Company historically maintained a defined benefit pension plan covering substantially all of the Company’s employees. The plan was amended January 28, 2008 to freeze the plan with no additional contributions for a majority of participants. Employees age 55 or greater or with 10 years of credited service were grandfathered in the plan. No additional participants have been added to the plan. The plan was again amended February 28, 2011 to freeze the plan with no additional contributions for grandfathered participants. Benefits for all participants have remained frozen in the plan since such action was taken. Effective January 1, 2012, the plan was amended and restated as a cash balance plan. Under a cash balance plan, participant benefits are stated as an account balance. An opening account balance was established for each participant based on the lump sum value of his or her accrued benefit as of December 31, 2011 in the original defined benefit pension plan. Each participants’ account will be credited with an “interest” credit each year. The interest rate for each year is determined as the average annual interest rate on the 2 year U.S. Treasury securities for the month of December preceding the plan year. Components of net periodic pension expense (benefit) related to the Company’s pension plan were as follows for the periods indicated: Three Months Ended Nine Months Ended September 30, September 30, (dollars in thousands) 2016 2015 2016 2015 Components of net periodic pension expense (benefit) Interest cost $ (18) $ 101 $ 179 $ 303 Expected return on plan assets 29 (178) (288) (535) Amortization of prior service cost - 2 4 7 Recognized net actuarial (gain) loss (5) 26 48 80 Net settlement loss - 29 - 82 Net periodic pension expense (benefit) $ 6 $ (20) $ (57) $ (63) The Company made no contributions to the pension plan during 2015 . The Company has not determined at this time how much, if any, contributions to the plan will be made for the year ending December 31, 2016 . |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 11. Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. U.S. GAAP requires that valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. U.S. GAAP also establishes a fair value hierarchy which prioritizes the valuation inputs into three broad levels. Based on the underlying inputs, each fair value measurement in its entirety is reported in one of the three levels. These levels are: * Level 1 – Valuation is based upon quoted prices (unadjusted) for identical instruments traded in active markets. * Level 2 – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. * Level 3 – Valuation is determined using model-based techniques with significant assumptions not observable in the market . U.S. GAAP allows an entity the irrevocable option to elect fair value (the fair value option) for the initial and subsequent measurement for certain financial assets and liabilities on a contract-by-contract basis. The Company has not made any fair value option elections as of September 30, 2016 . Following is a description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy. Assets Measured at Fair Value on a Recurring Basis Securities Available For Sale . Securities available for sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted market prices, when available (Level 1). If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable market data. Third party vendors compile prices from various sources and may determine the fair value of identical or similar securities by using pricing models that consider observable market data (Level 2). In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. Currently, all of the Company’s available for sale securities are considered to be Level 2 securities. The following table summarizes financial assets measured at fair value on a recurring basis as of September 30, 2016 and December 31, 2015 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Assets Measured at Fair Value on a Recurring Basis at September 30, 2016 Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Balance at Identical Assets Inputs Inputs September 30, (dollars in thousands) (Level 1) (Level 2) (Level 3) 2016 Assets Securities available for sale SBA Pool securities $ - $ 66,524 $ - $ 66,524 Agency residential mortgage-backed securities - 27,543 - 27,543 Agency commercial mortgage-backed securities - 27,440 - 27,440 Agency CMO securities - 54,430 - 54,430 Non agency CMO securities - 47 - 47 State and political subdivisions - 54,916 - 54,916 Corporate securities - 2,025 - 2,025 Total securities available for sale $ - $ 232,925 $ - $ 232,925 Assets Measured at Fair Value on a Recurring Basis at December 31, 2015 Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Balance at Identical Assets Inputs Inputs December 31, (dollars in thousands) (Level 1) (Level 2) (Level 3) 2015 Assets Securities available for sale Obligations of U.S. Government agencies $ - $ 9,262 $ - $ 9,262 SBA Pool securities - 63,826 - 63,826 Agency residential mortgage-backed securities - 23,903 - 23,903 Agency commercial mortgage-backed securities - 18,315 - 18,315 Agency CMO securities - 52,171 - 52,171 Non agency CMO securities - 61 - 61 State and political subdivisions - 61,405 - 61,405 Corporate securities - 2,000 - 2,000 Total securities available for sale $ - $ 230,943 $ - $ 230,943 Assets Measured at Fair Value on a Non-Recurring Basis Certain assets are measured at fair value on a non-recurring basis in accordance with U.S. GAAP. These adjustments to fair value usually result from the application of fair value accounting or impairment write-downs of individual assets. Impaired Loans. Loans are designated as impaired when, in the judgment of management based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected when due. The measurement of loss associated with impaired loans can be based on either the observable market price of the loan or the fair value of the collateral. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The vast majority of the collateral is real estate. The value of real estate collateral is determined utilizing an income or market valuation approach based on an appraisal conducted by an independent, licensed appraiser outside of the Company using observable market data (Level 2). However, if the collateral value is significantly adjusted due to differences in the comparable properties, or is discounted by the Company because of marketability, then the fair value is considered Level 3. The value of business equipment is based upon an outside appraisal if deemed significant, or the net book value on the applicable business’ financial statements if not considered significant. Likewise, values for inventory and accounts receivables collateral are based on financial statement balances or aging reports (Level 3). Impaired loans allocated to the allowance for loan losses are measured at fair value on a non-recurring basis. Any fair value adjustments are recorded in the period incurred as provision for loan losses on the consolidated statements of income. Other Real Estate Owned. OREO is measured at fair value less cost to sell, based on an appraisal conducted by an independent, licensed appraiser outside of the Company using observable market data (Level 2). If the collateral value is significantly adjusted due to differences in the comparable properties, or is discounted by the Company because of marketability, then the fair value is considered Level 3. OREO is measured at fair value on a non-recurring basis. Any initial fair value adjustment is charged against the allowance for loan losses. Subsequent fair value adjustments are recorded in the period incurred and included in other noninterest expense on the consolidated statements of income. The following table summarizes assets measured at fair value on a non-recurring basis as of September 30, 2016 and December 31, 2015 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Assets Measured at Fair Value on a Non-Recurring Basis at September 30, 2016 Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Balance at Identical Assets Inputs Inputs September 30, (dollars in thousands) (Level 1) (Level 2) (Level 3) 2016 Assets Impaired loans $ - $ - $ 9,690 $ 9,690 Other real estate owned $ - $ - $ 1,534 $ 1,534 : Assets Measured at Fair Value on a Non-Recurring Basis at December 31, 2015 Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Balance at Identical Assets Inputs Inputs December 31, (dollars in thousands) (Level 1) (Level 2) (Level 3) 2015 Assets Impaired loans $ - $ - $ 15,394 $ 15,394 Other real estate owned $ - $ - $ 520 $ 520 The following tables display quantitative information about Level 3 Fair Value Measurements as of September 30, 2016 and December 31, 2015 : Quantitative information about Level 3 Fair Value Measurements at September 30, 2016 (dollars in thousands) Fair Value Valuation Technique(s) Unobservable Input Range (Weighted Average) Assets Impaired loans $ 9,690 Discounted appraised value Selling cost 0% - 93% ( 12% ) Discount for lack of marketability and age of appraisal 0% - 25% ( 8% ) Other real estate owned $ 1,534 Discounted appraised value Selling cost 10% ( 10% ) Discount for lack of marketability and age of appraisal 0% - 47% ( 12% ) Quantitative information about Level 3 Fair Value Measurements at December 31, 2015 (dollars in thousands) Fair Value Valuation Technique(s) Unobservable Input Range (Weighted Average) Assets Impaired loans $ 15,394 Discounted appraised value Selling cost 0% - 24% ( 13% ) Discount for lack of marketability and age of appraisal 0% - 30% ( 4% ) Other real estate owned $ 520 Discounted appraised value Selling cost 10% ( 10% ) Discount for lack of marketability and age of appraisal 0% - 36% ( 5% ) Fair Value of Financial Instruments U.S. GAAP requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis. The methodologies and assumptions for estimating the fair value of financial assets and financial liabilities that are measured at fair value on a recurring or non-recurring basis are discussed above. The methodologies and assumptions for other financial assets and financial liabilities are discussed below: Cash and Short-Term Investments. For those short-term instruments, the carrying amount is a reasonable estimate of fair value. Investment Securities. For securities and marketable equity securities held for investment purposes, fair values are based on quoted market prices or dealer quotes. For other securities held as investments, fair value equals quoted market price, if available. If a quoted market price is not available, fair value is estimated using quoted prices for similar securities. All securities prices are provided by independent third party vendors. Restricted Securities. The carrying amount approximates fair value based on the redemption provisions of the correspondent banks. Loans. The fair value of performing loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar remaining maturities. This calculation ignores loan fees and certain factors affecting the interest rates charged on various loans such as the borrower’s creditworthiness and compensating balances and dissimilar types of real estate held as collateral. The fair value of impaired loans is measured as described within the Impaired Loans section of this note. Bank Owned Life Insurance. Bank owned life insurance represents insurance policies on officers of the Company. The cash values of the policies are estimated using information provided by insurance carriers. The policies are carried at their cash surrender value, which approximates fair value. Deposits. The fair value of demand deposits, savings accounts, and certain money market deposits is the amount payable on demand at the reporting date. The fair value of fixed maturity certificates of deposit is estimated using market rates for deposits of similar remaining maturities. Short-Term Borrowings. The carrying amounts of federal funds purchased and other short-term borrowings maturing within 90 days approximate their fair values. Fair values of other short-term borrowings are estimated using discounted cash flow analyses based on the current incremental borrowing rates for similar types of borrowing arrangements. Long-Term Borrowings. The fair values of the Company’s long-term borrowings are estimated using discounted cash flow analyses based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. Accrued Interest Receivable and Accrued Interest Payable. The carrying amounts of accrued interest approximate fair value. Off-Balance Sheet Financial Instruments. The fair value of commitments to extend credit is estimated using the fees currently charged to enter similar agreements, taking into account the remaining terms of the agreements and the present credit worthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of standby letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligations with the counterparties at the reporting date. The fair value of guarantees of credit card accounts previously sold is based on the estimated cost to settle the obligations with the counterparty at the reporting date. At September 30, 2016 and December 31, 2015, the fair value of loan commitments, standby letters of credit and credit card guarantees are not significant and are not included in the table below. The fair value and the carrying value of the Company’s recorded financial instruments are as follows: Fair Value Measurements at September 30, 2016 Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Balance at Identical Assets Inputs Inputs September 30, (dollars in thousands) Carrying Amount (Level 1) (Level 2) (Level 3) 2016 Assets: Cash and short-term investments* $ 6,297 $ 6,297 $ - $ - $ 6,297 Interest bearing deposits with banks 13,676 13,676 - - 13,676 Securities available for sale 232,925 - 232,925 - 232,925 Securities held to maturity 28,549 - 29,947 - 29,947 Restricted securities 9,665 - 9,665 - 9,665 Loans, net 926,157 - - 921,810 921,810 Bank owned life insurance 25,577 - 25,577 - 25,577 Accrued interest receivable 4,369 - 4,369 - 4,369 Total $ 1,247,215 $ 19,973 $ 302,483 $ 921,810 $ 1,244,266 Liabilities: Noninterest-bearing demand deposits $ 200,544 $ 200,544 $ - $ - $ 200,544 Interest-bearing deposits 809,746 - 768,574 - 768,574 Short-term borrowings** 133,087 133,087 - - 133,087 Junior subordinated debt 10,310 - 11,979 - 11,979 Senior subordinated debt*** 19,098 - 20,906 - 20,906 Accrued interest payable 942 - 942 - 942 Total $ 1,173,727 $ 333,631 $ 802,401 $ - $ 1,136,032 *Includes federal funds sold. **Includes federal funds purchased and repurchase agreements. *** Net of unamortized debt issuance costs of $902 . Fair Value Measurements at December 31, 2015 Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Balance at Identical Assets Inputs Inputs December 31, (dollars in thousands) Carrying Amount (Level 1) (Level 2) (Level 3) 2015 Assets: Cash and short-term investments* $ 13,651 $ 13,651 $ - $ - $ 13,651 Interest bearing deposits with banks 18,304 18,304 - - 18,304 Securities available for sale 230,943 - 230,943 - 230,943 Securities held to maturity 29,698 - 30,575 - 30,575 Restricted securities 8,959 - 8,959 - 8,959 Loans, net 869,451 - - 871,989 871,989 Bank owned life insurance 25,099 - 25,099 - 25,099 Accrued interest receivable 4,059 - 4,059 - 4,059 Total $ 1,200,164 $ 31,955 $ 299,635 $ 871,989 $ 1,203,579 Liabilities: Noninterest-bearing demand deposits $ 174,071 $ 174,071 $ - $ - $ 174,071 Interest-bearing deposits 814,648 - 763,315 - 763,315 Short-term borrowings** 119,428 119,428 - - 119,428 Junior subordinated debt 10,310 - 9,933 - 9,933 Senior subordinated debt*** 19,022 - 19,669 - 19,669 Accrued interest payable 590 - 590 - 590 Total $ 1,138,069 $ 293,499 $ 793,507 $ - $ 1,087,006 * Includes federal funds sold. ** Includes federal funds purchased and repurchase agreements. *** Net of unamortized debt issuance costs of $978 . The Company assumes interest rate risk (the risk that general interest rate levels will change) as a result of the Company’s normal operations. As a result, the fair values of the Company’s financial instruments will change when interest rate levels change and that change may be either favorable or unfavorable to the Company. The Company attempts to match maturities of assets and liabilities to the extent believed necessary to minimize interest rate risk. However, borrowers with fixed rate obligations are less likely to prepay in a rising rate environment. Conversely, depositors who are receiving fixed rates are more likely to withdraw funds before maturity in a rising rate environment and less likely to do so in a falling rate environment. The Company monitors rates and maturities of assets and liabilities and attempts to minimize interest rate risk by adjusting terms of new loans and deposits and by investing in securities with terms that mitigate the Company’s overall interest rate risk. |
Preferred Stock and Warrant
Preferred Stock and Warrant | 9 Months Ended |
Sep. 30, 2016 | |
Preferred Stock and Warrant [Abstract] | |
Preferred Stock and Warrant | Note 12. Preferred Stock and Warrant On January 9, 2009, the Company signed a definitive agreement with the Treasury under the Emergency Economic Stabilization Act of 2008 to participate in the Treasury’s Capital Purchase Program. Pursuant to this agreement, the Company sold 24,000 shares of its Series A fixed rate cumulative perpetual preferred stock, liquidation value $1,000 per share (the “Series A Preferred Stock”), to the Treasury for an aggregate purchase price of $24 million. The Series A Preferred Stock paid a cumulative dividend at a rate of 5% for the first five years, and effective January 9, 2014 , paid a rate of 9% . As part of its purchase of the Series A Preferred Stock, the Treasury was also issued a warrant (the “Warrant”) to purchase, on its initial terms, up to 373,832 shares of the Company’s common stock at an initial exercise price of $9.63 per share. If not exercised, the Warrant would have expired after ten years. On October 21, 2013, the Treasury sold all 24,000 shares of Series A Preferred Stock that were held by Treasury to private investors. Capital stock transactions by the Company subsequent to the Warrant’s issuance adjusted the Warrant’s exercise price per share to $9.374 and increased the number of shares that could have been acquired upon exercise to 384,041.19 shares. On May 13, 2015, the Company repurchased from the Treasury the Warrant for an aggregate repurchase price of $115 thousand, based on the fair value of the Warrant as agreed upon by the Company and the Treasury. Following the repurchase of the Warrant, the Treasury has no remaining equity investment in the Company. Additionally, on June 15, 2015, the Company redeemed the remaining $9.0 million of its Series A Preferred Stock. In connection with its private placements, on June 12, 2013, the Company issued 5,240,192 shares of its Series B Preferred Stock for a gross purchase price of $23.8 million, or $4.55 per share. The Series B Preferred Stock has no maturity date. The holders of Series B Preferred Stock are entitled to receive dividends if, as and when declared by the Company’s Board of Directors, in an identical form of consideration and at the same time, as those dividends or distributions that would have been payable on the number of whole shares of the Company’s common stock that such shares of Series B Preferred Stock would be convertible into upon satisfaction of certain conditions. The Company will not pay any dividends with respect to its common stock unless an equivalent dividend also is paid to the holders of Series B Preferred Stock. The Series B Preferred Stock ranks junior with regard to dividends to any class or series of capital stock of the Company the terms of which expressly provide that such class or series will rank senior to the common stock or the Series B Preferred Stock as to dividend rights and/or as to rights on liquidation, dissolution or winding up of the Company. |
Junior and Senior Subordinated
Junior and Senior Subordinated Debt | 9 Months Ended |
Sep. 30, 2016 | |
Junior and Senior Subordinated Debt [Abstract] | |
Junior and Senior Subordinated Debt | Note 13. Junior and Senior Subordinated Debt On September 17, 2003, $10 million of trust preferred securities were placed through EVB Statutory Trust I in a pooled underwriting totaling approximately $650 million. The trust issuer has invested the total proceeds from the sale of the trust preferred securities in Floating Rate Junior Subordinated Deferrable Interest Debentures (“Junior Subordinated Debt”) issued by the Company. The trust preferred securities pay cumulative cash distributions quarterly at a variable rate per annum, reset quarterly, equal to the 3-month LIBOR plus 2.95% . As of September 30, 2016 and December 31, 2015 , the interest rate was 3.81% and 3.48% , respectively. The dividends paid to holders of the trust preferred securities, which are recorded as interest expense, are deductible for income tax purposes. The trust preferred securities have a mandatory redemption date of September 17, 2033 , and became subject to varying call provisions beginning September 17, 2008. The Company has fully and unconditionally guaranteed the trust preferred securities through the combined operation of the Junior Subordinated Debt and other related documents. The Company’s obligation under the guarantee is unsecured and subordinate to senior and subordinated indebtedness of the Company. The trust preferred securities may be included in Tier 1 capital for regulatory capital adequacy determination purposes up to 25% of Tier 1 capital after its inclusion. At September 30, 2016 and December 31, 2015 , all of the trust preferred securities qualified as Tier 1 capital. Subject to certain exceptions and limitations, the Company is permitted to elect from time to time to defer regularly scheduled interest payments on its outstanding Junior Subordinated Debt relating to its trust preferred securities. If the Company defers interest payments on the Junior Subordinated Debt for more than 20 consecutive quarters, the Company would be in default under the governing agreements for such notes and the amount due under such agreements would be immediately due and payable. On April 22, 2015, the Company entered into a Senior Subordinated Note Purchase Agreement with certain institutional accredited investors pursuant to which the Company sold $20.0 million in aggregate principal amount of its 6.50% Fixed-to-Floating Rate Subordinated Notes due 2025 ("Senior Subordinated Debt") to the investors at a price equal to 100% of the aggregate principal amount of the Senior Subordinated Debt. The Senior Subordinated Debt bears interest at an annual rate of 6.50% , payable semi-annually in arrears on May 1 and November 1 of each year ending on May 1, 2020. From and including May 1, 2020 to, but excluding, the maturity date, the Senior Subordinated Debt will bear interest at an annual rate, reset quarterly, equal to LIBOR determined on the determination date of the applicable interest period plus 502 basis points, payable quarterly in arrears on February 1, May 1, August 1 and November 1 of each year, beginning on August 1, 2020. The Company may, at its option, redeem, in whole or in part, the Senior Subordinated Debt as early as May 1, 2020, and any partial redemption would be made pro rata among all of the holders. At September 30, 2016 , all of the Senior Subordinated Debt qualified as Tier 2 capital. At September 30, 2016 , the remaining unamortized debt issuance costs related to the Senior Subordinated Debt totaled $902 thousand. |
Capital Requirements
Capital Requirements | 9 Months Ended |
Sep. 30, 2016 | |
Capital Requirements [Abstract] | |
Capital Requirements | Note 14. Capital Requirements The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet regulatory capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components (such as interest rate risk), risk weightings and other factors. Prompt corrective action provisions are not applicable to bank holding companies. In July 2013, the federal bank regulatory agencies adopted rules to implement the Basel III capital framework and a revised framework for calculating risk-weighted assets (the “Basel III Capital Rules”). The Basel III Capital Rules were effective for the Company and the Bank on January 1, 2015 (subject to a phase-in period for certain portions of the new rules). For a summary of these final rules, see Part I, Item 1. “Business” under the heading “Regulation and Supervision – Capital Requirements” included in the Company’s 2015 Form 10-K. As of September 30, 2016 , the most recent notification from the Reserve Bank categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, an institution must maintain minimum total risk-based, common equity Tier 1 (“CET1”) risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the following tables. There are no conditions or events since the notification that management believes have changed the Bank’s category. The capital ratios of the Company and the Bank as of September 30, 2016 and December 31, 2015 , presented with related minimum regulatory guidelines, is as follows: Minimum To Be As of September 30, 2016 Well-Capitalized Minimum Under Prompt Capital Corrective Action Actual Capital Requirements* Provisions CET1 to risk weighted assets: Company 9.4797 % 5.1250 % N/A Bank 13.0421 % 5.1250 % 6.5000 % Tier 1 capital to risk weighted assets: Company 12.4005 % 6.6250 % N/A Bank 13.0421 % 6.6250 % 8.0000 % Total capital to risk weighted assets: Company 15.5552 % 8.6250 % N/A Bank 14.1235 % 8.6250 % 10.0000 % Tier 1 capital to average assets: Company 9.4119 % 4.0000 % N/A Bank 9.9042 % 4.0000 % 5.0000 % * Except with regard to the Company’s and the Bank’s Tier 1 capital to average assets ratio, includes the current phased-in portion of the Basel III Capital Rules capital conservation buffer (0.625%) which is added to the minimum capital requirements for capital adequacy purposes. The capital conservation buffer is being phased in through four equal annual installments of 0.625% from 2015 to 2019, with full implementation in January 2019 (2.5%). The Company’s and the Bank’s capital conservation buffer must consist of additional CET1 above regulatory minimum requirements. Failure to maintain the prescribed levels places limitations on capital distributions and discretionary bonuses to executives. As of September 30, 2016 , the capital conservation buffer of the Company and the Bank was 4 .9797% and 6.1235 % , respectively. Minimum to be As of December 31, 2015 Well-Capitalized Minimum Under Prompt Capital Corrective Action Actual Capital Requirements Provisions CET1 to risk weighted assets: Company 9.8000 % 4.5000 % N/A Bank 13.0200 % 4.5000 % 6.5000 % Tier 1 capital to risk weighted assets: Company 12.6600 % 6.0000 % N/A Bank 13.0200 % 6.0000 % 8.0000 % Total capital to risk weighted assets: Company 16.1700 % 8.0000 % N/A Bank 14.2700 % 8.0000 % 10.0000 % Tier 1 capital to average assets: Company 9.2000 % 4.0000 % N/A Bank 9.4600 % 4.0000 % 5.0000 % |
Low Income Housing Tax Credits
Low Income Housing Tax Credits | 9 Months Ended |
Sep. 30, 2016 | |
Low Income Housing Tax Credits [Abstract] | |
Low Income Housing Tax Credits Disclosure | Note 15. Low Income Housing Tax Credits The Company has invested in four separate housing equity funds at September 30, 2016 . The general purpose of these funds is to encourage and assist participants in investing in low-income residential rental properties located in the Commonwealth of Virginia, develop and implement strategies to maintain projects as low-income housing, deliver Federal Low Income Housing Credits to investors, allocate tax losses and other possible tax benefits to investors and to preserve and protect project assets. The investments in these funds are recorded as other assets on the consolidated balance sheets and were $2.4 million and $2.8 million at September 30, 2016 and December 31, 2015 , respectively. These investments and related tax benefits have expected terms through 2032, with the majority maturing by 2027. Tax credits and other tax benefits recognized related to these investments during the three and nine months ended September 30, 2016 and 2015 were $353 thousand and $368 thousand, respectively. Total projected tax credits to be received for 2016 are $318 thousand, which is based on the most recent quarterly estimates received from the funds. Additional capital calls expected for the funds totaled $1.0 million at both September 30, 2016 and December 31, 2015 and are included in other liabilities on the consolidated balance sheets. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2016 | |
Accumulated Other Comprehensive Loss | |
Accumulated Other Comprehensive Loss | Note 16. Accumulated Other Comprehensive Loss The changes in accumulated other comprehensive loss (net of tax) for the nine months ended September 30, 2016 and 2015 are summarized as follows: (dollars in thousands) Unrealized Gains (Losses) on Available for Sale Securities Unrealized (Losses) on Available for Sale Securities Transferred to Held to Maturity Adjustments Related to Pension Plan Accumulated Other Comprehensive (Loss) Income Balance at December 31, 2015 $ (1,726) $ (356) $ (1,804) $ (3,886) Other comprehensive income before reclassification and amortization 3,244 - - 3,244 Reclassification adjustment for gains included in net income (335) - - (335) Net amortization of unrealized losses on securities transferred from available for sale to held to maturity - 57 - 57 Net current period other comprehensive income 2,909 57 - 2,966 Balance at September 30, 2016 $ 1,183 $ (299) $ (1,804) $ (920) Balance at December 31, 2014 $ (1,476) $ (478) $ (2,112) $ (4,066) Other comprehensive income before reclassification and amortization 707 - - 707 Reclassification adjustment for gains included in net income (87) - - (87) Net amortization of unrealized losses on securities transferred from available for sale to held to maturity - 104 - 104 Net current period other comprehensive income 620 104 - 724 Balance at September 30, 2015 $ (856) $ (374) $ (2,112) $ (3,342) Reclassifications of gains on securities available for sale are reported in the consolidated statements of income as “Gain on sale of available for sale securities, net” with the corresponding income tax effect being reflected as a component of income tax expense. Amortization of unrealized losses on securities transferred from available for sale to held to maturity is included in interest on investments (taxable or tax exempt, as appropriate) in the Company’s consolidated statements of income. During the three and nine months ended September 30, 2016 and 2015 , the Company reported gains on the sale of available for sale and held to maturity securities and amortization of unrealized losses on securities transferred from available for sale to held to maturity as shown in the following table: Three Months Ended Nine Months Ended September 30, September 30, (dollars in thousands) 2016 2015 2016 2015 Gains on sale of available for sale and held to maturity securities $ 270 $ 81 $ 507 $ 132 Less: tax effect (92) (28) (172) (45) Net gains on the sale of available for sale and held to maturity securities $ 178 $ 53 $ 335 $ 87 Amortization of unrealized losses on securities transferred from available for sale to held to maturity $ (29) $ (60) $ (86) $ (157) Less: tax effect 10 20 29 53 Net amortization of unrealized losses on securities transferred from available for sale to held to maturity $ (19) $ (40) $ (57) $ (104) |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying unaudited consolidated financial statements of Eastern Virginia Bankshares, Inc. (the “Company”) and its subsidiaries, EVB Statutory Trust I (the “Trust”), which is unconsolidated, and EVB (the “Bank”) and its subsidiaries, are in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q adopted by the Securities and Exchange Commission (“SEC”). Accordingly, these financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. Operating results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 (the “2015 Form 10-K”). The accompanying unaudited consolidated financial statements include the accounts of the Company, the Bank and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. In addition, the Company owns the Trust which is an unconsolidated subsidiary. The subordinated debt owed to the Trust is reported as a liability of the Company. |
Nature of Operations | Nature of Operations Eastern Virginia Bankshares, Inc. is a bank holding company that was organized and chartered under the laws of the Commonwealth of Virginia on September 5, 1997 and commenced operations on December 29, 1997. Eastern Virginia Bankshares, Inc. was headquartered in Tappahannock, Virginia until October 2016 at which time it relocated to Glen Allen, Virginia. The Company conducts its primary operations through its wholly-owned bank subsidiary, EVB, which is headquartered in Tappahannock, Virginia. Two of EVB’s three predecessor banks, Bank of Northumberland, Inc. and Southside Bank, were established in 1910. The third bank, Hanover Bank, was established as a de novo bank in 2000. In April 2006, these three banks were merged and the surviving bank was re-branded as EVB. Additionally, the Company acquired Virginia Company Bank (“VCB”) (see Note 2 – Business Combinations) on November 14, 2014 and merged VCB with and into the Bank, with the Bank surviving, thus adding three additional branches to the Bank located in Newport News, Williamsburg, and Hampton. The Bank provides a full range of banking and related financial services to individuals and businesses through its network of retail branches. With twenty-four retail branches, the Bank serves diverse markets that primarily are in the counties of Essex, Gloucester, Hanover, Henrico, King and Queen, King William, Lancaster, Middlesex, New Kent, Northumberland, Southampton, Surry, Sussex and the cities of Colonial Heights, Hampton, Newport News, Richmond and Williamsburg . The Bank also operates a loan production office in Chesterfield County, Virginia, that the Bank opened during the second quarter of 2014. The Bank operates under a state bank charter and as such is subject to regulation by the Virginia State Corporation Commission Bureau of Financial Institutions (the “Bureau”) and the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”). The Bank owns EVB Financial Services, Inc., which in turn has a 100% ownership interest in EVB Investments, Inc. EVB Investments, Inc. is a full-service brokerage firm offering a comprehensive range of investment services. On May 15, 2014, the Bank acquired a 4.9% ownership interest in Southern Trust Mortgage, LLC. Pursuant to an independent contractor agreement with Southern Trust Mortgage, LLC, the Company advises and consults with Southern Trust Mortgage, LLC and facilitates the marketing and brand recognition of their mortgage business. In addition, the Company provides Southern Trust Mortgage, LLC with offices at two retail branches in the Company’s market area and access to office equipment at these locations during normal business hours. For its services, the Company receives fixed monthly compensation from Southern Trust Mortgage, LLC in the amount of $2 thousand, which is adjustable on a quarterly basis. The Bank had a 75% ownership interest in EVB Title, LLC, which primarily sold title insurance to the mortgage loan customers of the Bank and EVB Mortgage, LLC. Effective January 2014, the Bank ceased operations of EVB Title, LLC due to low volume and profitability. On October 1, 2014, the Bank acquired a 6.0% ownership interest in Bankers Title, LLC. Bankers Title, LLC is a multi-bank owned title agency providing a full range of title insurance settlement and related financial services. The Bank has a 2.87% ownership interest in Bankers Insurance, LLC, which primarily sells insurance products to customers of the Bank, and other financial institutions that have an equity interest in the agency. The Bank also has a 100% ownership interest in Dunston Hall LLC, POS LLC, Tartan Holdings LLC and ECU-RE LLC which were formed to hold the title to real estate acquired by the Bank upon foreclosure on property of real estate secured loans. The financial position and operating results of all of these subsidiaries are not significant to the Company as a whole and are not considered principal activities of the Company at this time. The Company’s common stock trades on the NASDAQ Global Select Market under the symbol “EVBS.” |
Basis of Presentation | Basis of Presentation The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, impairment of loans, impairment of securities, the valuation of other real estate owned (or “OREO”), the projected benefit obligation under the defined benefit pension plan, the valuation of deferred taxes, goodwill impairment and fair value of financial instruments. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of the results of operations in these interim financial statements, have been made. Certain prior year amounts have been reclassified to conform to the 2016 presentation. These reclassifications have no effect on previously reported net income. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, “Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” This update is intended to provide guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management is required under the new guidance to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued when preparing financial statements for each interim and annual reporting period. If conditions or events are identified, the ASU specifies the process that must be followed by management and also clarifies the timing and content of going concern footnote disclosures in order to reduce diversity in practice. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2016. Early adoption is permitted. The Company does not expect the adoption of ASU 2014-15 to have a material impact on its consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” The amendments in ASU 2016-01, among other things: 1) require equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; 2) require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; 3) require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables); and 4) eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently assessing the impact that ASU 2016-01 will have on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” Among other things, in the amendments in ASU 2016-02, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: 1) a lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and 2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is currently assessing the impact that ASU 2016-02 will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-07, “Investments – Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting.” The amendments in this ASU eliminate the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. In addition, the amendments in this ASU require that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income (loss) at the date the investment becomes qualified for use of the equity method. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The amendments should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. Early adoption is permitted. The Company does not expect the adoption of ASU 2016-07 to have a material impact on its consolidated financial statements. During March 2016, the FASB issued ASU No. 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Shares-Based Payment Accounting.” The amendments in this ASU simplify several aspects of the accounting for share-based payment award transactions including: a) income tax consequences; b) classification of awards as either equity or liabilities; and c) classification on the statement of cash flows. The amendments are effective for public companies for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company is currently assessing the impact that ASU 2016-09 will have on its consolidated financial statements. During June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The amendments in this ASU, among other things, require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will be required to use additional forward-looking information when determining their credit loss estimates. It is anticipated that many of the loss estimation techniques currently applied will still be permitted, although the inputs to those techniques are expected to change to reflect the full amount of expected credit losses. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The amendments in this ASU are effective for public companies that file reports with the SEC for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company is currently assessing the impact that ASU 2016-13 will have on its consolidated financial statements. During August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The amendments should be applied using a retrospective transition method to each period presented. If retrospective application is impractical for some of the issues addressed by the update, the amendments for those issues would be applied prospectively as of the earliest date practicable. Early adoption is permitted, including adoption in an interim period. The Company does not expect the adoption of ASU 2016-15 to have a material impact on its consolidated financial statements. |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Schedule of Acquisition Accounting Net Effect of Amortization and Accretion | The net effect of the amortization and accretion of premiums and discounts associated with the Company’s acquisition accounting adjustments to assets acquired and liabilities assumed from VCB had the following impact on the consolidated statements of income during the three and nine months ended September 30, 2016 and 2015 : Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended September 30, September 30, September 30, September 30, (dollars in thousands) 2016 2015 2016 2015 Loans (1) $ 138 $ 107 $ 383 $ 703 Core deposit intangible (2) (52) (62) (163) (190) Time deposits (3) (4) (25) (20) (90) Net impact to income before income taxes $ 82 $ 20 $ 200 $ 423 (1) Loan discount accretion is included in the “Interest and fees on loans” section of “Interest and Dividend Income” in the consolidated statements of income. (2) Core deposit intangible premium amortization is included in the “Other operating expenses” section of “Noninterest Expenses” in the consolidated statements of income. (3) Time deposit premium amortization is included in the “Deposits” section of “Interest Expense” in the consolidated statements of income. |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Investment Securities [Abstract] | |
Amortized Cost and Estimated Fair Value with Gross Unrealized Gains and Losses of Securities | The amortized cost and estimated fair value, with gross unrealized gains and losses, of investment securities at September 30, 2016 and December 31, 2015 were as follows: (dollars in thousands) September 30, 2016 Gross Gross Amortized Unrealized Unrealized Fair Available for Sale: Cost Gains Losses Value SBA Pool securities $ 66,546 $ 321 $ 343 $ 66,524 Agency residential mortgage-backed securities 27,591 32 80 27,543 Agency commercial mortgage-backed securities 26,845 612 17 27,440 Agency CMO securities 54,230 434 234 54,430 Non agency CMO securities* 47 - - 47 State and political subdivisions 53,873 1,179 136 54,916 Corporate securities 2,000 25 - 2,025 Total $ 231,132 $ 2,603 $ 810 $ 232,925 *The combined unrealized gains on these securities were less than $1. (dollars in thousands) December 31, 2015 Gross Gross Amortized Unrealized Unrealized Fair Available for Sale: Cost Gains Losses Value Obligations of U.S. Government agencies $ 9,404 $ - $ 142 $ 9,262 SBA Pool securities 64,866 25 1,065 63,826 Agency residential mortgage-backed securities 24,250 7 354 23,903 Agency commercial mortgage-backed securities 18,503 - 188 18,315 Agency CMO securities 52,870 130 829 52,171 Non agency CMO securities* 61 - - 61 State and political subdivisions 61,604 303 502 61,405 Corporate securities 2,000 - - 2,000 Total $ 233,558 $ 465 $ 3,080 $ 230,943 * The combined unrealized gains on these securities were less than $1. (dollars in thousands) September 30, 2016 Net Unrealized Losses Gross Gross Amortized Recorded Carrying Unrealized Unrealized Fair Cost in AOCI* Value Gains Losses Value Held to Maturity: Agency CMO securities $ 10,387 $ 42 $ 10,345 $ 265 $ - $ 10,610 State and political subdivisions 18,615 411 18,204 1,133 - 19,337 Total $ 29,002 $ 453 $ 28,549 $ 1,398 $ - $ 29,947 * Represents the net unrealized holding loss at the date of transfer from available for sale to held to maturity, net of any accretion. (dollars in thousands) December 31, 2015 Net Unrealized Losses Gross Gross Amortized Recorded Carrying Unrealized Unrealized Fair Cost in AOCI* Value Gains Losses Value Held to Maturity: Agency CMO securities $ 11,430 $ 59 $ 11,371 $ 305 $ - $ 11,676 State and political subdivisions 18,807 480 18,327 572 - 18,899 Total $ 30,237 $ 539 $ 29,698 $ 877 $ - $ 30,575 *Represents the net unrealized holding loss at the date of transfer from available for sale to held to maturity, net of any accretion. |
Amortized Cost and Estimated Fair Values of Securities by Earlier of Contractual Maturity or Expected Maturity | The amortized cost, carrying value and fair value of investment securities at September 30, 2016 , by the earlier of contractual maturity or expected maturity, are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without penalties. (dollars in thousands) September 30, 2016 Available for Sale: Amortized Cost Fair Value Due in one year or less $ 1,833 $ 1,847 Due after one year through five years 91,238 91,567 Due after five years through ten years 117,774 119,346 Due after ten years 20,287 20,165 Total $ 231,132 $ 232,925 (dollars in thousands) September 30, 2016 Held to Maturity: Carrying Value Fair Value Due in one year or less $ 1,009 $ 1,016 Due after one year through five years 24,341 25,504 Due after five years through ten years 2,452 2,653 Due after ten years 747 774 Total $ 28,549 $ 29,947 |
Schedule of Realized Gain and Losses on the Sale of Investments | The following table presents the gross realized gains and losses on the sale of investment securities available for sale and proceeds from the sale of investment securities available for sale during the three and nine months ended September 30, 2016 and 2015. Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended (dollars in thousands) September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Realized gains (losses): Gross realized gains $ 502 $ 247 $ 874 $ 541 Gross realized (losses) (232) (176) (367) (419) Net realized gains $ 270 $ 71 $ 507 $ 122 Proceeds from sales of investment securities available for sale $ 38,002 $ 43,676 $ 74,880 $ 63,646 The following table presents the gross realized gains on the sale of investment securities held to maturity and proceeds from the sale of investment securities held to maturity during the three and nine months ended September 30, 2016 and 2015. Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended (dollars in thousands) September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 Gross realized gains $ - $ 10 $ - $ 10 Net realized gains $ - $ 10 $ - $ 10 Proceeds from sales of investment securities held to maturity $ - $ 531 $ - $ 531 |
Securities in Unrealized Loss Position by Duration of Period of Unrealized Loss | Investment securities in an unrealized loss position at September 30, 2016, by duration of the period of the unrealized loss, are shown below: September 30, 2016 (dollars in thousands) Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized Description of Investment Securities Value Loss Value Loss Value Loss SBA Pool securities $ 15,880 $ 161 $ 22,131 $ 182 $ 38,011 $ 343 Agency residential mortgage-backed securities 4,159 57 4,333 23 8,492 80 Agency commercial mortgage-backed securities 1,490 17 - - 1,490 17 Agency CMO securities 22,937 188 4,674 46 27,611 234 State and political subdivisions 6,763 96 2,796 40 9,559 136 Total $ 51,229 $ 519 $ 33,934 $ 291 $ 85,163 $ 810 Investment securities in an unrealized loss position at December 31, 2015, by duration of the period of the unrealized loss, are shown below: December 31, 2015 (dollars in thousands) Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized Description of Investment Securities Value Loss Value Loss Value Loss Obligations of U.S. Government agencies $ 4,848 $ 58 $ 4,414 $ 84 $ 9,262 $ 142 SBA Pool securities 19,573 180 39,700 885 59,273 1,065 Agency residential mortgage-backed securities 9,370 104 9,341 250 18,711 354 Agency commercial mortgage-backed securities 18,315 188 - - 18,315 188 Agency CMO securities 34,075 596 6,340 233 40,415 829 State and political subdivisions 31,415 408 3,840 94 35,255 502 Total $ 117,596 $ 1,534 $ 63,635 $ 1,546 $ 181,231 $ 3,080 |
Loan Portfolio (Tables)
Loan Portfolio (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Loan Portfolio [Abstract] | |
Composition of Loan Portfolio | The following table sets forth the composition of the Company’s loan portfolio in dollar amounts and as a percentage of the Company’s total gross loans at the dates indicated: September 30, 2016 December 31, 2015 (dollars in thousands) Amount Percent Amount Percent Commercial, industrial and agricultural $ 116,747 12.47% $ 98,828 11.22% Real estate - one to four family residential: Closed end first and seconds 217,733 23.24% 232,826 26.43% Home equity lines 119,578 12.77% 116,309 13.20% Total real estate - one to four family residential 337,311 36.01% 349,135 39.63% Real estate - multifamily residential 34,302 3.66% 29,672 3.37% Real estate - construction: One to four family residential 17,788 1.90% 19,495 2.21% Other construction, land development and other land 74,884 8.00% 46,877 5.32% Total real estate - construction 92,672 9.90% 66,372 7.53% Real estate - farmland 11,172 1.19% 11,418 1.30% Real estate - non-farm, non-residential: Owner occupied 190,502 20.34% 187,224 21.27% Non-owner occupied 106,205 11.34% 104,456 11.86% Total real estate - non-farm, non-residential 296,707 31.68% 291,680 33.13% Consumer 32,313 3.45% 19,993 2.27% Other 15,400 1.64% 13,680 1.55% Total loans 936,624 100.00% 880,778 100.00% Less allowance for loan losses (10,467) (11,327) Loans, net $ 926,157 $ 869,451 |
Aging of Recorded Investment in Past Due Loans | The following table presents the aging of the recorded investment in past due loans as of September 30, 2016 by class of loans: (dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Over 90 Days Past Due Total Past Due Total Current* Total Loans Commercial, industrial and agricultural $ - $ 25 $ - $ 25 $ 116,722 $ 116,747 Real estate - one to four family residential: Closed end first and seconds 2,507 664 4,046 7,217 210,516 217,733 Home equity lines 20 138 315 473 119,105 119,578 Total real estate - one to four family residential 2,527 802 4,361 7,690 329,621 337,311 Real estate - multifamily residential - - - - 34,302 34,302 Real estate - construction: One to four family residential 200 15 - 215 17,573 17,788 Other construction, land development and other land - - - - 74,884 74,884 Total real estate - construction 200 15 - 215 92,457 92,672 Real estate - farmland - - - - 11,172 11,172 Real estate - non-farm, non-residential: Owner occupied 49 - 1,654 1,703 188,799 190,502 Non-owner occupied 258 - - 258 105,947 106,205 Total real estate - non-farm, non-residential 307 - 1,654 1,961 294,746 296,707 Consumer 21 - 144 165 32,148 32,313 Other - - - - 15,400 15,400 Total loans $ 3,055 $ 842 $ 6,159 $ 10,056 $ 926,568 $ 936,624 * For purposes of this table only, the "Total Current" column includes loans that are 1-29 days past due. The following table presents the aging of the recorded investment in past due loans as of December 31, 2015 by class of loans: (dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Over 90 Days Past Due Total Past Due Total Current* Total Loans Commercial, industrial and agricultural $ 149 $ - $ 193 $ 342 $ 98,486 $ 98,828 Real estate - one to four family residential: Closed end first and seconds 2,748 1,322 4,647 8,717 224,109 232,826 Home equity lines 1,166 - 250 1,416 114,893 116,309 Total real estate - one to four family residential 3,914 1,322 4,897 10,133 339,002 349,135 Real estate - multifamily residential - - - - 29,672 29,672 Real estate - construction: One to four family residential 11 - 89 100 19,395 19,495 Other construction, land development and other land - - - - 46,877 46,877 Total real estate - construction 11 - 89 100 66,272 66,372 Real estate - farmland - - - - 11,418 11,418 Real estate - non-farm, non-residential: Owner occupied 1,637 - 624 2,261 184,963 187,224 Non-owner occupied - - 676 676 103,780 104,456 Total real estate - non-farm, non-residential 1,637 - 1,300 2,937 288,743 291,680 Consumer 377 4 - 381 19,612 19,993 Other - - - - 13,680 13,680 Total loans $ 6,088 $ 1,326 $ 6,479 $ 13,893 $ 866,885 $ 880,778 *For purposes of this table only, the "Total Current" column includes loans that are 1-29 days past due. |
Nonaccrual Loans, Loans Past Due Ninety Days and Accruing Interest, and Restructured Loans | The following table presents nonaccrual loans, loans past due 90 days and accruing interest and troubled debt restructurings (accruing) at the dates indicated: (dollars in thousands) September 30, 2016 December 31, 2015 Nonaccrual loans $ 4,729 $ 6,175 Loans past due 90 days and accruing interest 2,594 1,117 Troubled debt restructurings (accruing) 14,590 15,535 |
Schedule of Loans Acquired Pursuant To Acquisition | Outstanding principal balance and the carrying amount of loans acquired pursuant to the Company’s acquisition of VCB (or “Acquired Loans”) that were recorded at fair value at the acquisition date and are included in the consolidated balance sheet at September 30, 2016 and December 31, 2015 were as follows: September 30, 2016 December 31, 2015 Acquired Acquired Loans - Acquired Loans - Acquired Purchased Loans - Acquired Purchased Loans - Acquired Credit Purchased Loans - Credit Purchased Loans - (dollars in thousands) Impaired Performing Total Impaired Performing Total Commercial, industrial and agricultural $ 450 $ 2,642 $ 3,092 $ 549 $ 3,476 $ 4,025 Real estate - one to four family residential: Closed end first and seconds 1,133 5,765 6,898 1,116 6,290 7,406 Home equity lines 32 8,739 8,771 32 9,955 9,987 Total real estate - one to four family residential 1,165 14,504 15,669 1,148 16,245 17,393 Real estate - multifamily residential - 1,737 1,737 - 1,988 1,988 Real estate - construction: One to four family residential - 367 367 - 515 515 Other construction, land development and other land 258 2,116 2,374 275 1,910 2,185 Total real estate - construction 258 2,483 2,741 275 2,425 2,700 Real estate - non-farm, non-residential: Owner occupied 4,241 13,205 17,446 4,296 16,528 20,824 Non-owner occupied 1,494 8,458 9,952 1,600 10,847 12,447 Total real estate - non-farm, non-residential 5,735 21,663 27,398 5,896 27,375 33,271 Consumer - 158 158 - 276 276 Other - 645 645 - 800 800 Total loans $ 7,608 $ 43,832 $ 51,440 $ 7,868 $ 52,585 $ 60,453 |
Recorded Investment in Nonaccrual Loans and Loans Past Due Ninety Days and Accruing Interest by Class | The following table presents the recorded investment in nonaccrual loans and loans past due 90 days and accruing interest by class at September 30, 2016 and December 31, 2015 : Over 90 Days Past Nonaccrual Due and Accruing September 30, December 31, September 30, December 31, (dollars in thousands) 2016 2015 2016 2015 Commercial, industrial and agricultural $ 66 $ 193 $ - $ - Real estate - one to four family residential: Closed end first and seconds 3,735 4,153 1,134 1,117 Home equity lines 490 425 - - Total real estate - one to four family residential 4,225 4,578 1,134 1,117 Real estate - construction: One to four family residential - 89 - - Total real estate - construction - 89 - - Real estate - non-farm, non-residential: Owner occupied 225 624 1,460 - Non-owner occupied - 676 - - Total real estate - non-farm, non-residential 225 1,300 1,460 - Consumer 213 15 - - Total loans $ 4,729 $ 6,175 $ 2,594 $ 1,117 |
Commercial Loans by Credit Quality Indicator | The following table presents commercial loans by credit quality indicator at September 30, 2016 : Acquired Loans - Purchased Special Credit (dollars in thousands) Pass Mention Substandard Impaired Impaired Total Commercial, industrial and agricultural $ 112,293 $ 2,516 $ 246 $ 1,242 $ 450 $ 116,747 Real estate - multifamily residential 34,302 - - - - 34,302 Real estate - construction: One to four family residential 17,403 133 79 173 - 17,788 Other construction, land development and other land 66,351 2,631 186 5,458 258 74,884 Total real estate - construction 83,754 2,764 265 5,631 258 92,672 Real estate - farmland 10,050 603 - 519 - 11,172 Real estate - non-farm, non-residential: Owner occupied 168,843 8,124 1,909 7,385 4,241 190,502 Non-owner occupied 91,251 1,164 1,426 10,870 1,494 106,205 Total real estate - non-farm, non-residential 260,094 9,288 3,335 18,255 5,735 296,707 Total commercial loans $ 500,493 $ 15,171 $ 3,846 $ 25,647 $ 6,443 $ 551,600 The following table presents commercial loans by credit quality indicator at December 31, 2015 : Acquired Loans - Purchased Special Credit (dollars in thousands) Pass Mention Substandard Impaired Impaired Total Commercial, industrial and agricultural $ 95,440 $ 1,709 $ 291 $ 839 $ 549 $ 98,828 Real estate - multifamily residential 29,672 - - - - 29,672 Real estate - construction: One to four family residential 19,000 220 89 186 - 19,495 Other construction, land development and other land 38,013 1,785 1,242 5,562 275 46,877 Total real estate - construction 57,013 2,005 1,331 5,748 275 66,372 Real estate - farmland 10,396 318 165 539 - 11,418 Real estate - non-farm, non-residential: Owner occupied 162,103 12,206 2,283 6,336 4,296 187,224 Non-owner occupied 86,894 2,130 1,040 12,792 1,600 104,456 Total real estate - non-farm, non-residential 248,997 14,336 3,323 19,128 5,896 291,680 Total commercial loans $ 441,518 $ 18,368 $ 5,110 $ 26,254 $ 6,720 $ 497,970 |
Consumer Loans, Including One to Four Family Residential First and Seconds and Home Equity Lines, by Payment Activity | The following table presents consumer loans, including one to four family residential first and seconds and home equity lines, by payment activity at September 30, 2016 : (dollars in thousands) Performing Nonperforming Total Real estate - one to four family residential: Closed end first and seconds $ 207,741 $ 9,992 $ 217,733 Home equity lines 119,038 540 119,578 Total real estate - one to four family residential 326,779 10,532 337,311 Consumer 31,854 459 32,313 Other 15,400 - 15,400 Total consumer loans $ 374,033 $ 10,991 $ 385,024 The following table presents consumer loans, including one to four family residential first and seconds and home equity lines, by payment activity at December 31, 2015 : (dollars in thousands) Performing Nonperforming Total Real estate - one to four family residential: Closed end first and seconds $ 220,016 $ 12,810 $ 232,826 Home equity lines 115,434 875 116,309 Total real estate - one to four family residential 335,450 13,685 349,135 Consumer 19,655 338 19,993 Other 13,678 2 13,680 Total consumer loans $ 368,783 $ 14,025 $ 382,808 |
Rollforward of Allowance for Loan Losses | The following table presents a rollforward of the Company’s allowance for loan losses for the nine months ended September 30, 2016 : Beginning Ending Balance Balance (dollars in thousands) January 1, 2016 Charge-offs Recoveries Provision September 30, 2016 Commercial, industrial and agricultural $ 1,894 $ (68) $ 78 $ 444 $ 2,348 Real estate - one to four family residential: Closed end first and seconds 1,609 (658) 455 (71) 1,335 Home equity lines 795 (431) 20 205 589 Total real estate - one to four family residential 2,404 (1,089) 475 134 1,924 Real estate - multifamily residential 78 - - 5 83 Real estate - construction: One to four family residential 295 - 5 (95) 205 Other construction, land development and other land 2,423 - 1 288 2,712 Total real estate - construction 2,718 - 6 193 2,917 Real estate - farmland 272 - - (189) 83 Real estate - non-farm, non-residential: Owner occupied 1,964 (208) 63 (449) 1,370 Non-owner occupied 1,241 (90) 61 (569) 643 Total real estate - non-farm, non-residential 3,205 (298) 124 (1,018) 2,013 Consumer 287 (104) 31 260 474 Other 469 (58) 26 188 625 Total $ 11,327 $ (1,617) $ 740 $ 17 $ 10,467 The following table presents a rollforward of the Company’s allowance for loan losses for the nine months ended September 30, 2015 : Beginning Ending Balance Balance (dollars in thousands) January 1, 2015 Charge-offs Recoveries Provision September 30, 2015 Commercial, industrial and agricultural $ 1,168 $ (181) $ 39 $ 535 $ 1,561 Real estate - one to four family residential: Closed end first and seconds 1,884 (622) 87 469 1,818 Home equity lines 1,678 (160) 7 (675) 850 Total real estate - one to four family residential 3,562 (782) 94 (206) 2,668 Real estate - multifamily residential 89 - - (6) 83 Real estate - construction: One to four family residential 235 (102) 3 210 346 Other construction, land development and other land 2,670 - 1 45 2,716 Total real estate - construction 2,905 (102) 4 255 3,062 Real estate - farmland 144 - - 141 285 Real estate - non-farm, non-residential: Owner occupied 2,416 (139) 1 (214) 2,064 Non-owner occupied 1,908 - - (567) 1,341 Total real estate - non-farm, non-residential 4,324 (139) 1 (781) 3,405 Consumer 305 (34) 43 (12) 302 Other 524 (52) 26 74 572 Total $ 13,021 $ (1,290) $ 207 $ - $ 11,938 |
Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Class Based on Impairment | The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio class based on impairment method as of September 30, 2016 : Allowance allocated to loans: Total Loans: Acquired Acquired Individually Collectively loans - Individually Collectively loans - evaluated evaluated purchased evaluated evaluated purchased for for credit for for credit (dollars in thousands) impairment impairment impaired Total impairment impairment impaired Total Commercial, industrial and agricultural $ 1,014 $ 1,334 $ - $ 2,348 $ 1,242 $ 115,055 $ 450 $ 116,747 Real estate - one to four family residential: Closed end first and seconds 154 1,164 17 1,335 5,946 210,654 1,133 217,733 Home equity lines 50 539 - 589 225 119,321 32 119,578 Total real estate - one to four family residential 204 1,703 17 1,924 6,171 329,975 1,165 337,311 Real estate - multifamily residential - 83 - 83 - 34,302 - 34,302 Real estate - construction: One to four family residential 58 147 - 205 173 17,615 - 17,788 Other construction, land development and other land 1,402 1,310 - 2,712 5,458 69,168 258 74,884 Total real estate - construction 1,460 1,457 - 2,917 5,631 86,783 258 92,672 Real estate - farmland 42 41 - 83 519 10,653 - 11,172 Real estate - non-farm, non-residential: Owner occupied 470 900 - 1,370 7,385 178,876 4,241 190,502 Non-owner occupied 187 456 - 643 10,870 93,841 1,494 106,205 Total real estate - non-farm, non-residential 657 1,356 - 2,013 18,255 272,717 5,735 296,707 Consumer 72 402 - 474 315 31,998 - 32,313 Other - 625 - 625 - 15,400 - 15,400 Total $ 3,449 $ 7,001 $ 17 $ 10,467 $ 32,133 $ 896,883 $ 7,608 $ 936,624 The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio class based on impairment method as of December 31, 2015 : Allowance allocated to loans: Total Loans: Acquired Acquired Individually Collectively loans - Individually Collectively loans - evaluated evaluated purchased evaluated evaluated purchased for for credit for for credit (dollars in thousands) impairment impairment impaired Total impairment impairment impaired Total Commercial, industrial and agricultural $ 562 $ 1,332 $ - $ 1,894 $ 839 $ 97,440 $ 549 $ 98,828 Real estate - one to four family residential: Closed end first and seconds 517 1,092 - 1,609 8,163 223,547 1,116 232,826 Home equity lines 265 530 - 795 625 115,652 32 116,309 Total real estate - one to four family residential 782 1,622 - 2,404 8,788 339,199 1,148 349,135 Real estate - multifamily residential - 78 - 78 - 29,672 - 29,672 Real estate - construction: One to four family residential 67 228 - 295 186 19,309 - 19,495 Other construction, land development and other land 1,263 1,160 - 2,423 5,562 41,040 275 46,877 Total real estate - construction 1,330 1,388 - 2,718 5,748 60,349 275 66,372 Real estate - farmland 210 62 - 272 539 10,879 - 11,418 Real estate - non-farm, non-residential: Owner occupied 824 1,140 - 1,964 6,336 176,592 4,296 187,224 Non-owner occupied 810 431 - 1,241 12,792 90,064 1,600 104,456 Total real estate - non-farm, non-residential 1,634 1,571 - 3,205 19,128 266,656 5,896 291,680 Consumer 88 199 - 287 338 19,655 - 19,993 Other - 469 - 469 2 13,678 - 13,680 Total $ 4,606 $ 6,721 $ - $ 11,327 $ 35,382 $ 837,528 $ 7,868 $ 880,778 |
Impairment by Class of Loans | The following table presents loans individually evaluated for impairment by class of loans as of September 30, 2016 : Recorded Recorded Unpaid Investment Investment Average Interest Recorded Principal With No With Related Recorded Income (dollars in thousands) Investment Balance Allowance Allowance Allowance Investment Recognized Commercial, industrial and agricultural $ 1,242 $ 1,244 $ 66 $ 1,176 $ 1,014 $ 970 $ 48 Real estate - one to four family residential: Closed end first and seconds 5,946 6,296 3,164 2,782 154 7,010 255 Home equity lines 225 225 175 50 50 521 2 Total real estate - one to four family residential 6,171 6,521 3,339 2,832 204 7,531 257 Real estate - construction: One to four family residential 173 173 17 156 58 179 6 Other construction, land development and other land 5,458 5,458 - 5,458 1,402 5,500 194 Total real estate - construction 5,631 5,631 17 5,614 1,460 5,679 200 Real estate - farmland 519 522 262 257 42 528 25 Real estate - non-farm, non-residential: Owner occupied 7,385 7,386 5,725 1,660 470 5,775 296 Non-owner occupied 10,870 10,870 9,580 1,290 187 12,368 413 Total real estate - non-farm, non-residential 18,255 18,256 15,305 2,950 657 18,143 709 Consumer 315 328 5 310 72 326 13 Total loans* $ 32,133 $ 32,502 $ 18,994 $ 13,139 $ 3,449 $ 33,177 $ 1,252 * PCI loans are excluded from this table. The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2015 : Recorded Recorded Unpaid Investment Investment Average Interest Recorded Principal With No With Related Recorded Income (dollars in thousands) Investment Balance Allowance Allowance Allowance Investment Recognized Commercial, industrial and agricultural $ 839 $ 839 $ - $ 839 $ 562 $ 753 $ 49 Real estate - one to four family residential: Closed end first and seconds 8,163 8,530 3,981 4,182 517 8,386 416 Home equity lines 625 625 175 450 265 521 16 Total real estate - one to four family residential 8,788 9,155 4,156 4,632 782 8,907 432 Real estate - construction: One to four family residential 186 186 20 166 67 235 8 Other construction, land development and other land 5,562 5,562 - 5,562 1,263 5,611 260 Total real estate - construction 5,748 5,748 20 5,728 1,330 5,846 268 Real estate - farmland 539 541 - 539 210 167 36 Real estate - non-farm, non-residential: Owner occupied 6,336 6,336 3,506 2,830 824 8,995 292 Non-owner occupied 12,792 12,792 7,686 5,106 810 11,312 595 Total real estate - non-farm, non-residential 19,128 19,128 11,192 7,936 1,634 20,307 887 Consumer 338 350 12 326 88 352 19 Other 2 2 2 - - 4 - Total loans* $ 35,382 $ 35,763 $ 15,382 $ 20,000 $ 4,606 $ 36,336 $ 1,691 *PCI loans are excluded from this table. |
Accounting for Certain Loans and Debt Securities Acquired In Transfer | The following table presents a summary of the changes in the accretable yield of the PCI loan portfolio for the periods indicated: Three months ended Nine months ended September 30, 2016 September 30, 2016 (dollars in thousands) Accretable Yield Accretable Yield Balance at beginning of period $ 1,114 $ 1,280 Accretion (127) (381) Reclassification of nonaccretable difference due to improvement in expected cash flows 24 56 Other changes, net (11) 45 Balance at end of period $ 1,000 $ 1,000 Three months ended Nine months ended September 30, 2015 September 30, 2015 (dollars in thousands) Accretable Yield Accretable Yield Balance at beginning of period $ 925 $ 1,131 Accretion (110) (316) Reclassification of nonaccretable difference due to improvement in expected cash flows - - Other changes, net - - Balance at end of period $ 815 $ 815 |
Loans Modified as Troubled Debt Restructurings | The following table presents, by loan class, information related to loans modified as TDRs during the three months ended September 30, 2016 and 2015 : Three Months Ended September 30, 2016 Three Months Ended September 30, 2015 Pre- Post- Pre- Post- Modification Modification Modification Modification Number of Recorded Recorded Number of Recorded Recorded (dollars in thousands) Loans Balance Balance* Loans Balance Balance* Real estate - non-farm, non-residential: Owner occupied 1 $ 32 $ 32 - $ - $ - Total 1 $ 32 $ 32 - $ - $ - * The period end balances are inclusive of all partial paydowns and charge-offs since the modification date. Loans modified as TDRs that were fully paid down, charged-off, or foreclosed upon by period end are not reported. The following table presents, by loan class, information related to loans modified as TDRs during the nine months ended September 30, 2016 and 2015 : Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 Pre- Post- Pre- Post- Modification Modification Modification Modification Number of Recorded Recorded Number of Recorded Recorded (dollars in thousands) Loans Balance Balance* Loans Balance Balance* Commercial, industrial and agricultural 1 $ 68 $ 68 - $ - $ - Real estate - one to four family residential: Closed end first and seconds 5 640 640 - - - Real estate - non-farm, non-residential: Owner occupied 1 32 32 - - - Total 7 $ 740 $ 740 - $ - $ - *The period end balances are inclusive of all partial paydowns and charge-offs since the modification date. Loans modified as TDRs that were fully paid down, charged-off, or foreclosed upon by period end are not reported. |
Loans Modified as Troubled Debt Restructurings that Subsequently Defaulted | The following tables present, by loan class, information related to the loans modified as TDRs that subsequently defaulted (i.e., 90 days or more past due following a modification) during the three and nine months ended September 30, 2016 and 2015 and were modified as TDRs within the 12 months prior to default: Three Months Ended Three Months Ended September 30, 2016 September 30, 2015 Number of Recorded Number of Recorded (dollars in thousands) Loans Balance Loans Balance Real estate - one to four family residential: Closed end first and seconds 1 $ 39 - $ - Total 1 $ 39 - $ - Nine Months Ended Nine Months Ended September 30, 2016 September 30, 2015 Number of Recorded Number of Recorded (dollars in thousands) Loans Balance Loans Balance Real estate - one to four family residential: Closed end first and seconds 2 $ 389 1 $ 68 Total 2 $ 389 1 $ 68 |
Bank Premises and Equipment (Ta
Bank Premises and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Bank Premises and Equipment [Abstract] | |
Schedule of Bank Premises and Equipment | Bank premises and equipment are summarized as follows: (dollars in thousands) September 30, 2016 December 31, 2015 Land and improvements $ 6,872 $ 6,837 Buildings and leasehold improvements 28,724 28,487 Furniture, fixtures and equipment 20,797 20,385 Construction in progress 2,145 1,136 58,538 56,845 Less accumulated depreciation (30,624) (29,009) Net balance $ 27,914 $ 27,836 |
Borrowings (Tables)
Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Borrowings [Abstract] | |
Federal Funds Purchased and Repurchase Agreements | The tables below present selected information on federal funds purchased and repurchase agreements during the nine months ended September 30, 2016 and the year ended December 31, 2015 : Federal funds purchased (dollars in thousands) September 30, 2016 December 31, 2015 Balance outstanding at period end $ - $ - Maximum balance at any month end during the period $ 2,000 $ 2,440 Average balance for the period $ 57 $ 63 Weighted average rate for the period 0.93% 0.72% Weighted average rate at period end 0.00% 0.00% Repurchase agreements (dollars in thousands) September 30, 2016 December 31, 2015 Balance outstanding at period end $ 5,937 $ 5,015 Maximum balance at any month end during the period $ 11,942 $ 12,392 Average balance for the period $ 5,983 $ 8,002 Weighted average rate for the period 0.47% 0.57% Weighted average rate at period end 0.47% 0.47% |
Short Term Borrowings | The table below presents selected information on short-term borrowings during the nine months ended September 30, 2016 and the year ended December 31, 2015 : Short-term borrowings (dollars in thousands) September 30, 2016 December 31, 2015 Balance outstanding at period end $ 127,150 $ 114,413 Maximum balance at any month end during the period $ 127,150 $ 114,413 Average balance for the period $ 114,289 $ 89,580 Weighted average rate for the period 0.42% 0.22% Weighted average rate at period end 0.41% 0.32% |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Net Income Per Common Share [Abstract] | |
Weighted Average Number of Common Shares used in Computing Earnings Per Common Share and Effect on Potential Dilutive Common Stock | The following tables show the computation of basic and diluted net income per common share for the periods presented: Three Months Ended (dollars in thousands, except share and per share amounts) September 30, 2016 September 30, 2015 Basic Net Income Per Common Share Net income available to common shareholders $ 1,999 $ 2,010 Less: Net income allocated to participating securities, Series B Preferred Stock 571 577 Net income allocated to common shareholders $ 1,428 $ 1,433 Weighted average common shares outstanding for basic net income per common share 13,105,923 13,029,550 Basic net income per common share $ 0.10 $ 0.11 Diluted Net Income Per Common Share Net income available to common shareholders $ 1,999 $ 2,010 Weighted average common shares outstanding for basic net income per common share 13,105,923 13,029,550 Effect of dilutive securities, stock options - - Effect of dilutive securities, Series B Preferred Stock 5,240,192 5,240,192 Weighted average common shares outstanding for diluted net income per common share 18,346,115 18,269,742 Diluted net income per common share $ 0.10 $ 0.11 Nine Months Ended (dollars in thousands, except share and per share amounts) September 30, 2016 September 30, 2015 Basic Net Income Per Common Share Net income available to common shareholders $ 6,136 $ 4,740 Less: Net income allocated to participating securities, Series B Preferred Stock 1,755 1,361 Net income allocated to common shareholders $ 4,381 $ 3,379 Weighted average common shares outstanding for basic net income per common share 13,079,989 13,013,005 Basic net income per common share $ 0.33 $ 0.26 Diluted Net Income Per Common Share Net income available to common shareholders $ 6,136 $ 4,740 Weighted average common shares outstanding for basic net income per common share 13,079,989 13,013,005 Effect of dilutive securities, stock options - - Effect of dilutive securities, Series B Preferred Stock 5,240,192 5,240,192 Weighted average common shares outstanding for diluted net income per common share 18,320,181 18,253,197 Diluted net income per common share $ 0.33 $ 0.26 |
Stock Based Compensation Plans
Stock Based Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Stock Based Compensation Plans [Abstract] | |
Stock Option Activity and Related Information | A summary of the Company’s stock option activity and related information is as follows: Remaining Aggregate Options Weighted Average Contractual Life Intrinsic Value* Outstanding Exercise Price (in years) (in thousands) Stock options outstanding at December 31, 2015 67,525 $ 18.12 Forfeited (1,750) 20.07 Stock options outstanding at September 30, 2016 65,775 $ 18.07 0.87 $ - Stock options exercisable at September 30, 2016 65,775 $ 18.07 0.87 $ - *Intrinsic value is the amount by which the fair value of the underlying common stock exceeds the exercise price of a stock option on exercise date. |
Stock Options Outstanding and Exercisable | The table below summarizes information concerning stock options outstanding and exercisable at September 30, 2016 : Stock Options Outstanding and Exercisable Exercise Number Weighted Average Price Outstanding Remaining Term $ 21.16 27,775 0.00 years * $ 19.25 19,000 1.00 year $ 12.36 19,000 2.00 years $ 18.07 65,775 0.87 years |
Nonvested Shares in Relation to Restricted Stock Awards and Changes | A summary of the status of the Company’s nonvested shares in relation to the Company’s restricted stock awards as of September 30, 2016 , and changes during the nine months ended September 30, 2016 , is presented below; the weighted average price is the weighted average fair value at the date of grant: Weighted-Average Shares Price Nonvested as of December 31, 2015 121,271 $ 6.01 Granted 71,500 6.82 Vested (15,550) 5.11 Nonvested as of September 30, 2016 177,221 $ 6.42 |
Employee Benefit Plan - Pensi34
Employee Benefit Plan - Pension (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Employee Benefit Plan - Pension [Abstract] | |
Components of net periodic pension benefit plan | Components of net periodic pension expense (benefit) related to the Company’s pension plan were as follows for the periods indicated: Three Months Ended Nine Months Ended September 30, September 30, (dollars in thousands) 2016 2015 2016 2015 Components of net periodic pension expense (benefit) Interest cost $ (18) $ 101 $ 179 $ 303 Expected return on plan assets 29 (178) (288) (535) Amortization of prior service cost - 2 4 7 Recognized net actuarial (gain) loss (5) 26 48 80 Net settlement loss - 29 - 82 Net periodic pension expense (benefit) $ 6 $ (20) $ (57) $ (63) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Measurements [Abstract] | |
Financial Assets Measured at Fair Value on Recurring Basis | The following table summarizes financial assets measured at fair value on a recurring basis as of September 30, 2016 and December 31, 2015 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Assets Measured at Fair Value on a Recurring Basis at September 30, 2016 Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Balance at Identical Assets Inputs Inputs September 30, (dollars in thousands) (Level 1) (Level 2) (Level 3) 2016 Assets Securities available for sale SBA Pool securities $ - $ 66,524 $ - $ 66,524 Agency residential mortgage-backed securities - 27,543 - 27,543 Agency commercial mortgage-backed securities - 27,440 - 27,440 Agency CMO securities - 54,430 - 54,430 Non agency CMO securities - 47 - 47 State and political subdivisions - 54,916 - 54,916 Corporate securities - 2,025 - 2,025 Total securities available for sale $ - $ 232,925 $ - $ 232,925 Assets Measured at Fair Value on a Recurring Basis at December 31, 2015 Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Balance at Identical Assets Inputs Inputs December 31, (dollars in thousands) (Level 1) (Level 2) (Level 3) 2015 Assets Securities available for sale Obligations of U.S. Government agencies $ - $ 9,262 $ - $ 9,262 SBA Pool securities - 63,826 - 63,826 Agency residential mortgage-backed securities - 23,903 - 23,903 Agency commercial mortgage-backed securities - 18,315 - 18,315 Agency CMO securities - 52,171 - 52,171 Non agency CMO securities - 61 - 61 State and political subdivisions - 61,405 - 61,405 Corporate securities - 2,000 - 2,000 Total securities available for sale $ - $ 230,943 $ - $ 230,943 |
Assets Measured at Fair Value on Non-Recurring Basis | The following table summarizes assets measured at fair value on a non-recurring basis as of September 30, 2016 and December 31, 2015 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Assets Measured at Fair Value on a Non-Recurring Basis at September 30, 2016 Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Balance at Identical Assets Inputs Inputs September 30, (dollars in thousands) (Level 1) (Level 2) (Level 3) 2016 Assets Impaired loans $ - $ - $ 9,690 $ 9,690 Other real estate owned $ - $ - $ 1,534 $ 1,534 : Assets Measured at Fair Value on a Non-Recurring Basis at December 31, 2015 Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Balance at Identical Assets Inputs Inputs December 31, (dollars in thousands) (Level 1) (Level 2) (Level 3) 2015 Assets Impaired loans $ - $ - $ 15,394 $ 15,394 Other real estate owned $ - $ - $ 520 $ 520 |
Quantitative Information about Level Three Fair Value Measurements | The following tables display quantitative information about Level 3 Fair Value Measurements as of September 30, 2016 and December 31, 2015 : Quantitative information about Level 3 Fair Value Measurements at September 30, 2016 (dollars in thousands) Fair Value Valuation Technique(s) Unobservable Input Range (Weighted Average) Assets Impaired loans $ 9,690 Discounted appraised value Selling cost 0% - 93% ( 12% ) Discount for lack of marketability and age of appraisal 0% - 25% ( 8% ) Other real estate owned $ 1,534 Discounted appraised value Selling cost 10% ( 10% ) Discount for lack of marketability and age of appraisal 0% - 47% ( 12% ) Quantitative information about Level 3 Fair Value Measurements at December 31, 2015 (dollars in thousands) Fair Value Valuation Technique(s) Unobservable Input Range (Weighted Average) Assets Impaired loans $ 15,394 Discounted appraised value Selling cost 0% - 24% ( 13% ) Discount for lack of marketability and age of appraisal 0% - 30% ( 4% ) Other real estate owned $ 520 Discounted appraised value Selling cost 10% ( 10% ) Discount for lack of marketability and age of appraisal 0% - 36% ( 5% ) |
Estimated Fair Value and Carrying Value | The fair value and the carrying value of the Company’s recorded financial instruments are as follows: Fair Value Measurements at September 30, 2016 Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Balance at Identical Assets Inputs Inputs September 30, (dollars in thousands) Carrying Amount (Level 1) (Level 2) (Level 3) 2016 Assets: Cash and short-term investments* $ 6,297 $ 6,297 $ - $ - $ 6,297 Interest bearing deposits with banks 13,676 13,676 - - 13,676 Securities available for sale 232,925 - 232,925 - 232,925 Securities held to maturity 28,549 - 29,947 - 29,947 Restricted securities 9,665 - 9,665 - 9,665 Loans, net 926,157 - - 921,810 921,810 Bank owned life insurance 25,577 - 25,577 - 25,577 Accrued interest receivable 4,369 - 4,369 - 4,369 Total $ 1,247,215 $ 19,973 $ 302,483 $ 921,810 $ 1,244,266 Liabilities: Noninterest-bearing demand deposits $ 200,544 $ 200,544 $ - $ - $ 200,544 Interest-bearing deposits 809,746 - 768,574 - 768,574 Short-term borrowings** 133,087 133,087 - - 133,087 Junior subordinated debt 10,310 - 11,979 - 11,979 Senior subordinated debt*** 19,098 - 20,906 - 20,906 Accrued interest payable 942 - 942 - 942 Total $ 1,173,727 $ 333,631 $ 802,401 $ - $ 1,136,032 *Includes federal funds sold. **Includes federal funds purchased and repurchase agreements. *** Net of unamortized debt issuance costs of $902 . Fair Value Measurements at December 31, 2015 Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Balance at Identical Assets Inputs Inputs December 31, (dollars in thousands) Carrying Amount (Level 1) (Level 2) (Level 3) 2015 Assets: Cash and short-term investments* $ 13,651 $ 13,651 $ - $ - $ 13,651 Interest bearing deposits with banks 18,304 18,304 - - 18,304 Securities available for sale 230,943 - 230,943 - 230,943 Securities held to maturity 29,698 - 30,575 - 30,575 Restricted securities 8,959 - 8,959 - 8,959 Loans, net 869,451 - - 871,989 871,989 Bank owned life insurance 25,099 - 25,099 - 25,099 Accrued interest receivable 4,059 - 4,059 - 4,059 Total $ 1,200,164 $ 31,955 $ 299,635 $ 871,989 $ 1,203,579 Liabilities: Noninterest-bearing demand deposits $ 174,071 $ 174,071 $ - $ - $ 174,071 Interest-bearing deposits 814,648 - 763,315 - 763,315 Short-term borrowings** 119,428 119,428 - - 119,428 Junior subordinated debt 10,310 - 9,933 - 9,933 Senior subordinated debt*** 19,022 - 19,669 - 19,669 Accrued interest payable 590 - 590 - 590 Total $ 1,138,069 $ 293,499 $ 793,507 $ - $ 1,087,006 * Includes federal funds sold. ** Includes federal funds purchased and repurchase agreements. *** Net of unamortized debt issuance costs of $978 . |
Capital Requirements (Tables)
Capital Requirements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Capital Requirements [Abstract] | |
Actual Capital Amounts and Ratios | The capital ratios of the Company and the Bank as of September 30, 2016 and December 31, 2015 , presented with related minimum regulatory guidelines, is as follows: Minimum To Be As of September 30, 2016 Well-Capitalized Minimum Under Prompt Capital Corrective Action Actual Capital Requirements* Provisions CET1 to risk weighted assets: Company 9.4797 % 5.1250 % N/A Bank 13.0421 % 5.1250 % 6.5000 % Tier 1 capital to risk weighted assets: Company 12.4005 % 6.6250 % N/A Bank 13.0421 % 6.6250 % 8.0000 % Total capital to risk weighted assets: Company 15.5552 % 8.6250 % N/A Bank 14.1235 % 8.6250 % 10.0000 % Tier 1 capital to average assets: Company 9.4119 % 4.0000 % N/A Bank 9.9042 % 4.0000 % 5.0000 % * Except with regard to the Company’s and the Bank’s Tier 1 capital to average assets ratio, includes the current phased-in portion of the Basel III Capital Rules capital conservation buffer (0.625%) which is added to the minimum capital requirements for capital adequacy purposes. The capital conservation buffer is being phased in through four equal annual installments of 0.625% from 2015 to 2019, with full implementation in January 2019 (2.5%). The Company’s and the Bank’s capital conservation buffer must consist of additional CET1 above regulatory minimum requirements. Failure to maintain the prescribed levels places limitations on capital distributions and discretionary bonuses to executives. As of September 30, 2016 , the capital conservation buffer of the Company and the Bank was 4 .9797% and 6.1235 % , respectively. Minimum to be As of December 31, 2015 Well-Capitalized Minimum Under Prompt Capital Corrective Action Actual Capital Requirements Provisions CET1 to risk weighted assets: Company 9.8000 % 4.5000 % N/A Bank 13.0200 % 4.5000 % 6.5000 % Tier 1 capital to risk weighted assets: Company 12.6600 % 6.0000 % N/A Bank 13.0200 % 6.0000 % 8.0000 % Total capital to risk weighted assets: Company 16.1700 % 8.0000 % N/A Bank 14.2700 % 8.0000 % 10.0000 % Tier 1 capital to average assets: Company 9.2000 % 4.0000 % N/A Bank 9.4600 % 4.0000 % 5.0000 % |
Accumulated Other Comprehensi37
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Accumulated Other Comprehensive Loss | |
Accumulated Other Comprehensive Income (Loss) | The changes in accumulated other comprehensive loss (net of tax) for the nine months ended September 30, 2016 and 2015 are summarized as follows: (dollars in thousands) Unrealized Gains (Losses) on Available for Sale Securities Unrealized (Losses) on Available for Sale Securities Transferred to Held to Maturity Adjustments Related to Pension Plan Accumulated Other Comprehensive (Loss) Income Balance at December 31, 2015 $ (1,726) $ (356) $ (1,804) $ (3,886) Other comprehensive income before reclassification and amortization 3,244 - - 3,244 Reclassification adjustment for gains included in net income (335) - - (335) Net amortization of unrealized losses on securities transferred from available for sale to held to maturity - 57 - 57 Net current period other comprehensive income 2,909 57 - 2,966 Balance at September 30, 2016 $ 1,183 $ (299) $ (1,804) $ (920) Balance at December 31, 2014 $ (1,476) $ (478) $ (2,112) $ (4,066) Other comprehensive income before reclassification and amortization 707 - - 707 Reclassification adjustment for gains included in net income (87) - - (87) Net amortization of unrealized losses on securities transferred from available for sale to held to maturity - 104 - 104 Net current period other comprehensive income 620 104 - 724 Balance at September 30, 2015 $ (856) $ (374) $ (2,112) $ (3,342) |
Available for sale securities and amortization of unrealized losses on securities | During the three and nine months ended September 30, 2016 and 2015 , the Company reported gains on the sale of available for sale and held to maturity securities and amortization of unrealized losses on securities transferred from available for sale to held to maturity as shown in the following table: Three Months Ended Nine Months Ended September 30, September 30, (dollars in thousands) 2016 2015 2016 2015 Gains on sale of available for sale and held to maturity securities $ 270 $ 81 $ 507 $ 132 Less: tax effect (92) (28) (172) (45) Net gains on the sale of available for sale and held to maturity securities $ 178 $ 53 $ 335 $ 87 Amortization of unrealized losses on securities transferred from available for sale to held to maturity $ (29) $ (60) $ (86) $ (157) Less: tax effect 10 20 29 53 Net amortization of unrealized losses on securities transferred from available for sale to held to maturity $ (19) $ (40) $ (57) $ (104) |
Summary of Significant Accoun38
Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | May 15, 2014USD ($) | Sep. 30, 2016store | Oct. 01, 2014 |
Schedule of Equity Method Investments [Line Items] | |||
Number of retail branches | store | 24 | ||
Fixed monthly compensation | $ | $ 2 | ||
EVB Investments, Inc. | |||
Schedule of Equity Method Investments [Line Items] | |||
Interest percentage | 100.00% | ||
EVB Title, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest percentage | 75.00% | ||
Virginia Bankers Insurance Center, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest percentage | 2.87% | ||
Dunston Hall LLC, POS LLC, Tartan Holdings LLC and ECU-RE LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Interest percentage | 100.00% | ||
Bankers Title LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest percentage | 6.00% | ||
Southern Trust Mortgage LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest percentage | 4.90% |
Business Combinations (Narrativ
Business Combinations (Narrative) (Details) $ / shares in Units, $ in Thousands | Nov. 14, 2014USD ($)$ / shares | May 29, 2014store | Sep. 30, 2016USD ($)store | Dec. 31, 2015USD ($) | [1] |
Number of retail branches | store | 24 | ||||
Goodwill | $ 17,081 | $ 17,085 | |||
VCB [Member] | |||||
Number of retail branches | store | 3 | ||||
VCB [Member] | Common Stock | |||||
Business acquisition, share price | $ / shares | $ 6.25 | ||||
Payments to acquire businesses, gross | $ 2,400 | ||||
Business acquisition, equity interest issued or issuable, value assigned | $ 6,700 | ||||
Share price | $ / shares | $ 6.27 | ||||
Business acquisition common stock exchange rate | 0.9259 | ||||
Series A Preferred Stock [Member] | VCB [Member] | |||||
Business acquisition, equity interest issued or issuable, value assigned | $ 4,300 | ||||
[1] | Derived from audited consolidated financial statements. |
Business Combinations (Schedule
Business Combinations (Schedule of Acquisition Accounting Net Effect of Amortization and Accretion) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Interest and fees on loans | $ 11,150 | $ 10,443 | $ 33,099 | $ 31,016 | |
Other operating expenses | (1,737) | (1,598) | (5,058) | (4,991) | |
Deposits | (1,078) | (988) | (3,235) | (2,973) | |
Income before income taxes | 2,814 | 2,707 | 8,624 | 6,772 | |
Scenario, Adjustment [Member] | |||||
Interest and fees on loans | [1] | 138 | 107 | 383 | 703 |
Other operating expenses | [2] | (52) | (62) | (163) | (190) |
Deposits | [3] | (4) | (25) | (20) | (90) |
Income before income taxes | $ 82 | $ 20 | $ 200 | $ 423 | |
[1] | Loan discount accretion is included in the "Interest and fees on loans" section of "Interest and Dividend Income" in the consolidated statements of income. | ||||
[2] | Core deposit intangible premium amortization is included in the "Other operating expenses" section of "Noninterest Expenses" in the consolidated statements of income. | ||||
[3] | Time deposit premium amortization is included in the "Deposits" section of "Interest Expense" in the consolidated statements of income. |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2016USD ($)security | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)security | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2013USD ($) | ||
Amortized cost | $ 29,002 | $ 29,002 | $ 30,237 | $ 35,500 | |||
Estimated Fair Value | 29,947 | 29,947 | 30,575 | 34,500 | |||
Gross Unrealized Losses | $ 994 | ||||||
Net realized gains on sale of securities | 270 | $ 71 | 507 | $ 122 | |||
Proceeds from sale of investments securities available for sale | 38,002 | 43,676 | 74,880 | 63,646 | |||
Proceeds from maturities, calls and paydowns of securities available for sale | 25,176 | 18,449 | |||||
Sale of securities held to maturity | $ 531 | 531 | |||||
Proceeds from Maturities, Prepayments and Calls of Held-to-maturity Securities | 900 | 1,401 | |||||
Pledged securities, aggregate book value | 41,600 | 41,600 | 88,000 | ||||
Pledged securities, aggregate fair value | $ 43,000 | $ 43,000 | 88,000 | ||||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 64 | 64 | |||||
Fair value of temporarily impaired debt securities | $ 85,163 | $ 85,163 | 181,231 | ||||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | security | 37 | 37 | |||||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | security | 27 | 27 | |||||
Investment in Federal Home Loan Bank of Atlanta stock | $ 6,600 | $ 6,600 | 5,900 | ||||
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value | 51,229 | 51,229 | 117,596 | ||||
Available For Sale Securities Continuous Unrealized Loss Position Twelve Months Or Longer Fair Value | 33,934 | 33,934 | 63,635 | ||||
Carrying Value | 28,549 | 28,549 | 29,698 | [1] | |||
Gain on sale of held to maturity securities, net | $ 10 | ||||||
Estimated fair value of securities, trading securities | 0 | 0 | 0 | ||||
Restricted investments | 9,665 | 9,665 | 8,959 | [1] | |||
State and political subdivisions [Member] | |||||||
Amortized cost | 18,615 | 18,615 | 18,807 | ||||
Estimated Fair Value | 19,337 | 19,337 | 18,899 | ||||
Fair value of temporarily impaired debt securities | 9,559 | 9,559 | 35,255 | ||||
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value | 6,763 | 6,763 | 31,415 | ||||
Available For Sale Securities Continuous Unrealized Loss Position Twelve Months Or Longer Fair Value | 2,796 | 2,796 | 3,840 | ||||
Carrying Value | $ 18,204 | $ 18,204 | $ 18,327 | ||||
[1] | Derived from audited consolidated financial statements. |
Investment Securities (Amortize
Investment Securities (Amortized Cost and Estimated Fair Value with Gross Unrealized Gains and Losses of Securities) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2013 | |||
Available for Sale: | |||||
Amortized Cost | $ 231,132 | $ 233,558 | |||
Gross Unrealized Gains | 2,603 | 465 | |||
Gross Unrealized Losses | 810 | 3,080 | |||
Estimated Fair Value | 232,925 | 230,943 | [1] | ||
Held to Maturity: | |||||
Amortized cost | 29,002 | 30,237 | $ 35,500 | ||
Unrealized Losses Recorded in AOCI | [2] | 453 | 539 | ||
Carrying Value | 28,549 | 29,698 | [1] | ||
Gross Unrealized Gains | 1,398 | 877 | |||
Gross Unrealized Losses | 994 | ||||
Held-to-maturity Securities | 28,549 | 29,698 | [1] | ||
Estimated Fair Value | 29,947 | 30,575 | $ 34,500 | ||
Obligations of U.S. Government Agencies [Member] | |||||
Available for Sale: | |||||
Amortized Cost | 9,404 | ||||
Gross Unrealized Losses | 142 | ||||
Estimated Fair Value | 9,262 | ||||
SBA Pool securities [Member] | |||||
Available for Sale: | |||||
Amortized Cost | 66,546 | 64,866 | |||
Gross Unrealized Gains | 321 | 25 | |||
Gross Unrealized Losses | 343 | 1,065 | |||
Estimated Fair Value | 66,524 | 63,826 | |||
Agency Related Securities [Member] | Residential Mortgage Backed Securities [Member] | |||||
Available for Sale: | |||||
Amortized Cost | 27,591 | 24,250 | |||
Gross Unrealized Gains | 32 | 7 | |||
Gross Unrealized Losses | 80 | 354 | |||
Estimated Fair Value | 27,543 | 23,903 | |||
Agency Related Securities [Member] | Commercial Mortgage Backed Securities [Member] | |||||
Available for Sale: | |||||
Amortized Cost | 26,845 | 18,503 | |||
Gross Unrealized Gains | 612 | ||||
Gross Unrealized Losses | 17 | 188 | |||
Estimated Fair Value | 27,440 | 18,315 | |||
Agency CMO securities [Member] | |||||
Available for Sale: | |||||
Amortized Cost | 54,230 | 52,870 | |||
Gross Unrealized Gains | 434 | 130 | |||
Gross Unrealized Losses | 234 | 829 | |||
Estimated Fair Value | 54,430 | 52,171 | |||
Held to Maturity: | |||||
Amortized cost | 10,387 | 11,430 | |||
Unrealized Losses Recorded in AOCI | [2] | 42 | 59 | ||
Carrying Value | 10,345 | 11,371 | |||
Gross Unrealized Gains | 265 | 305 | |||
Held-to-maturity Securities | 10,345 | 11,371 | |||
Estimated Fair Value | 10,610 | 11,676 | |||
Non agency CMO securities [Member] | |||||
Available for Sale: | |||||
Amortized Cost | 47 | 61 | [3] | ||
Estimated Fair Value | 47 | 61 | [3] | ||
State and political subdivisions [Member] | |||||
Available for Sale: | |||||
Amortized Cost | 53,873 | 61,604 | |||
Gross Unrealized Gains | 1,179 | 303 | |||
Gross Unrealized Losses | 136 | 502 | |||
Estimated Fair Value | 54,916 | 61,405 | |||
Held to Maturity: | |||||
Amortized cost | 18,615 | 18,807 | |||
Unrealized Losses Recorded in AOCI | [2] | 411 | 480 | ||
Carrying Value | 18,204 | 18,327 | |||
Gross Unrealized Gains | 1,133 | 572 | |||
Held-to-maturity Securities | 18,204 | 18,327 | |||
Estimated Fair Value | 19,337 | 18,899 | |||
Corporate Securities [Member] | |||||
Available for Sale: | |||||
Amortized Cost | 2,000 | 2,000 | |||
Gross Unrealized Gains | 25 | ||||
Estimated Fair Value | $ 2,025 | $ 2,000 | |||
[1] | Derived from audited consolidated financial statements. | ||||
[2] | Represents the net unrealized holding loss at the date of transfer from available for sale to held to maturity, net of any accretion. | ||||
[3] | The combined unrealized gains on these securities were less than $1. |
Investment Securities (Amorti43
Investment Securities (Amortized Cost and Estimated Fair Values of Securities by Earlier of Contractual Maturity or Expected Maturity) (Details) $ in Thousands | Sep. 30, 2016USD ($) |
Available for Sale: | |
Amortized Cost, Due in one year or less | $ 1,833 |
Amortized Cost, Due after one year through five years | 91,238 |
Amortized Cost, Due after five years through ten years | 117,774 |
Amortized Cost, Due after ten years | 20,287 |
Amortized Cost, Total | 231,132 |
Estimated Fair Value, Due in one year or less | 1,847 |
Estimated Fair Value, Due after one year through five years | 91,567 |
Estimated Fair Value, Due after five years through ten years | 119,346 |
Estimated Fair Value, Due after ten years | 20,165 |
Estimated Fair Value, Total | 232,925 |
Held to Maturity: | |
Carrying Value, Due in one year or less | 1,009 |
Carrying Value, Due after one year through five years | 24,341 |
Carrying Value, Due after five years through ten years | 2,452 |
Carrying Value, Due after ten years | 747 |
Carrying Value, Total | 28,549 |
Estimated Fair Value, Due in one year or less | 1,016 |
Estimated Fair Value, Due after one year through five years | 25,504 |
Estimated Fair Value, Due after five years through ten years | 2,653 |
Estimated Fair Value, Due after ten years | 774 |
Estimated Fair Value, Total | $ 29,947 |
Investment Securities (Schedule
Investment Securities (Schedule of Realized Gain (Loss) on the Sale of Investment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract] | ||||
Gross realized gains | $ 502 | $ 247 | $ 874 | $ 541 |
Gross realized (losses) | (232) | (176) | (367) | (419) |
Net realized gains | 270 | 71 | 507 | 122 |
Proceeds from sale of investments securities available for sale | $ 38,002 | 43,676 | $ 74,880 | 63,646 |
Held-to-Maturity Securities, Gross Realized Gain (Loss) [Abstract] | ||||
Gross realized gains | 10 | 10 | ||
Net realized gains | 10 | 10 | ||
Proceeds from sale of held-to-maturity securities | $ 531 | $ 531 |
Investment Securities (Securiti
Investment Securities (Securities in Unrealized Loss Position by Duration of Period of Unrealized Loss) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | $ 51,229 | $ 117,596 |
Less than 12 months, Unrealized Loss | 519 | 1,534 |
12 months or more, Fair Value | 33,934 | 63,635 |
12 months or more, Unrealized Loss | 291 | 1,546 |
Total, Fair Value | 85,163 | 181,231 |
Total, Unrealized Loss | 810 | 3,080 |
Obligations of U.S. Government Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 4,848 | |
Less than 12 months, Unrealized Loss | 58 | |
12 months or more, Fair Value | 4,414 | |
12 months or more, Unrealized Loss | 84 | |
Total, Fair Value | 9,262 | |
Total, Unrealized Loss | 142 | |
SBA Pool securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 15,880 | 19,573 |
Less than 12 months, Unrealized Loss | 161 | 180 |
12 months or more, Fair Value | 22,131 | 39,700 |
12 months or more, Unrealized Loss | 182 | 885 |
Total, Fair Value | 38,011 | 59,273 |
Total, Unrealized Loss | 343 | 1,065 |
Agency CMO securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 22,937 | 34,075 |
Less than 12 months, Unrealized Loss | 188 | 596 |
12 months or more, Fair Value | 4,674 | 6,340 |
12 months or more, Unrealized Loss | 46 | 233 |
Total, Fair Value | 27,611 | 40,415 |
Total, Unrealized Loss | 234 | 829 |
State and political subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 6,763 | 31,415 |
Less than 12 months, Unrealized Loss | 96 | 408 |
12 months or more, Fair Value | 2,796 | 3,840 |
12 months or more, Unrealized Loss | 40 | 94 |
Total, Fair Value | 9,559 | 35,255 |
Total, Unrealized Loss | 136 | 502 |
Residential Mortgage Backed Securities [Member] | Agency Related Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 4,159 | 9,370 |
Less than 12 months, Unrealized Loss | 57 | 104 |
12 months or more, Fair Value | 4,333 | 9,341 |
12 months or more, Unrealized Loss | 23 | 250 |
Total, Fair Value | 8,492 | 18,711 |
Total, Unrealized Loss | 80 | 354 |
Commercial Mortgage Backed Securities [Member] | Agency Related Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 1,490 | 18,315 |
Less than 12 months, Unrealized Loss | 17 | 188 |
Total, Fair Value | 1,490 | 18,315 |
Total, Unrealized Loss | $ 17 | $ 188 |
Loan Portfolio (Narrative) (Det
Loan Portfolio (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016USD ($)loan | Sep. 30, 2016USD ($)loan | Sep. 30, 2015loan | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | |
Troubled debt restructurings in nonaccrual loans | $ 1.3 | $ 1.3 | $ 1.3 | ||
Deferred finance costs, net | 1.7 | 1.7 | 1.6 | ||
Certain loans acquired in transfer accounted for as debt securities, outstanding balance | 8.5 | 8.5 | 8.8 | ||
Certain loans acquired in transfer accounted for as debt securities, carrying amount, net | 7.6 | 7.6 | $ 7.6 | $ 7.9 | |
Foreclosed assets, residential real estate | $ 1.5 | $ 1.5 | |||
Number of loans modified that subsequently defaulted | loan | 1 | 2 | 1 | ||
Other Real Estate Owned | |||||
Foreclosed assets, residential real estate | $ 1.3 | $ 1.3 |
Loan Portfolio (Composition of
Loan Portfolio (Composition of Loan Portfolio) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | |
Composition of Loan Portfolio [Line Items] | |||||
Total loans | $ 936,624 | $ 880,778 | |||
Total loans Percent | 100.00% | 100.00% | |||
Less allowance for loan losses | $ (10,467) | $ (11,327) | $ (11,938) | $ (13,021) | |
Loans, net | 926,157 | 869,451 | [1] | ||
Commercial, industrial and agricultural | |||||
Composition of Loan Portfolio [Line Items] | |||||
Total loans | $ 116,747 | $ 98,828 | |||
Total loans Percent | 12.47% | 11.22% | |||
Less allowance for loan losses | $ (2,348) | $ (1,894) | (1,561) | (1,168) | |
Real estate - one to four family residential | |||||
Composition of Loan Portfolio [Line Items] | |||||
Total loans | $ 337,311 | $ 349,135 | |||
Total loans Percent | 36.01% | 39.63% | |||
Less allowance for loan losses | $ (1,924) | $ (2,404) | (2,668) | (3,562) | |
Real estate - one to four family residential | Closed end first and seconds | |||||
Composition of Loan Portfolio [Line Items] | |||||
Total loans | $ 217,733 | $ 232,826 | |||
Total loans Percent | 23.24% | 26.43% | |||
Less allowance for loan losses | $ (1,335) | $ (1,609) | (1,818) | (1,884) | |
Real estate - one to four family residential | Home Equity Line of Credit | |||||
Composition of Loan Portfolio [Line Items] | |||||
Total loans | $ 119,578 | $ 116,309 | |||
Total loans Percent | 12.77% | 13.20% | |||
Less allowance for loan losses | $ (589) | $ (795) | (850) | (1,678) | |
Real estate - multifamily residential | |||||
Composition of Loan Portfolio [Line Items] | |||||
Total loans | $ 34,302 | $ 29,672 | |||
Total loans Percent | 3.66% | 3.37% | |||
Less allowance for loan losses | $ (83) | $ (78) | (83) | (89) | |
Real Estate - Construction | |||||
Composition of Loan Portfolio [Line Items] | |||||
Total loans | $ 92,672 | $ 66,372 | |||
Total loans Percent | 9.90% | 7.53% | |||
Less allowance for loan losses | $ (2,917) | $ (2,718) | (3,062) | (2,905) | |
Real Estate - Construction | One To Four Family Residential | |||||
Composition of Loan Portfolio [Line Items] | |||||
Total loans | $ 17,788 | $ 19,495 | |||
Total loans Percent | 1.90% | 2.21% | |||
Less allowance for loan losses | $ (205) | $ (295) | (346) | (235) | |
Real Estate - Construction | Other construction, land development and other land | |||||
Composition of Loan Portfolio [Line Items] | |||||
Total loans | $ 74,884 | $ 46,877 | |||
Total loans Percent | 8.00% | 5.32% | |||
Less allowance for loan losses | $ (2,712) | $ (2,423) | (2,716) | (2,670) | |
Real estate - farmland | |||||
Composition of Loan Portfolio [Line Items] | |||||
Total loans | $ 11,172 | $ 11,418 | |||
Total loans Percent | 1.19% | 1.30% | |||
Less allowance for loan losses | $ (83) | $ (272) | (285) | (144) | |
Real Estate - Non-farm, Non-residential | |||||
Composition of Loan Portfolio [Line Items] | |||||
Total loans | $ 296,707 | $ 291,680 | |||
Total loans Percent | 31.68% | 33.13% | |||
Less allowance for loan losses | $ (2,013) | $ (3,205) | (3,405) | (4,324) | |
Real Estate - Non-farm, Non-residential | Owner Occupied | |||||
Composition of Loan Portfolio [Line Items] | |||||
Total loans | $ 190,502 | $ 187,224 | |||
Total loans Percent | 20.34% | 21.27% | |||
Less allowance for loan losses | $ (1,370) | $ (1,964) | (2,064) | (2,416) | |
Real Estate - Non-farm, Non-residential | Non-owner Occupied | |||||
Composition of Loan Portfolio [Line Items] | |||||
Total loans | $ 106,205 | $ 104,456 | |||
Total loans Percent | 11.34% | 11.86% | |||
Less allowance for loan losses | $ (643) | $ (1,241) | (1,341) | (1,908) | |
Consumer Loan | |||||
Composition of Loan Portfolio [Line Items] | |||||
Total loans | $ 32,313 | $ 19,993 | |||
Total loans Percent | 3.45% | 2.27% | |||
Less allowance for loan losses | $ (474) | $ (287) | (302) | (305) | |
Other | |||||
Composition of Loan Portfolio [Line Items] | |||||
Total loans | $ 15,400 | $ 13,680 | |||
Total loans Percent | 1.64% | 1.55% | |||
Less allowance for loan losses | $ (625) | $ (469) | $ (572) | $ (524) | |
[1] | Derived from audited consolidated financial statements. |
Loan Portfolio (Aging of Record
Loan Portfolio (Aging of Recorded Investment in Past Due Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | $ 10,056 | $ 13,893 | |
Total Current | [1] | 926,568 | 866,885 |
Total Loans | 936,624 | 880,778 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | 3,055 | 6,088 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | 842 | 1,326 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | 6,159 | 6,479 | |
Commercial, industrial and agricultural | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | 25 | 342 | |
Total Current | [1] | 116,722 | 98,486 |
Total Loans | 116,747 | 98,828 | |
Commercial, industrial and agricultural | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | 149 | ||
Commercial, industrial and agricultural | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | 25 | ||
Commercial, industrial and agricultural | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | 193 | ||
Real estate - one to four family residential | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | 7,690 | 10,133 | |
Total Current | [1] | 329,621 | 339,002 |
Total Loans | 337,311 | 349,135 | |
Real estate - one to four family residential | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | 2,527 | 3,914 | |
Real estate - one to four family residential | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | 802 | 1,322 | |
Real estate - one to four family residential | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | 4,361 | 4,897 | |
Real estate - one to four family residential | Closed end first and seconds | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | 7,217 | 8,717 | |
Total Current | [1] | 210,516 | 224,109 |
Total Loans | 217,733 | 232,826 | |
Real estate - one to four family residential | Closed end first and seconds | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | 2,507 | 2,748 | |
Real estate - one to four family residential | Closed end first and seconds | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | 664 | 1,322 | |
Real estate - one to four family residential | Closed end first and seconds | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | 4,046 | 4,647 | |
Real estate - one to four family residential | Home Equity Line of Credit | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | 473 | 1,416 | |
Total Current | [1] | 119,105 | 114,893 |
Total Loans | 119,578 | 116,309 | |
Real estate - one to four family residential | Home Equity Line of Credit | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | 20 | 1,166 | |
Real estate - one to four family residential | Home Equity Line of Credit | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | 138 | ||
Real estate - one to four family residential | Home Equity Line of Credit | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | 315 | 250 | |
Real estate - multifamily residential | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Current | [1] | 34,302 | 29,672 |
Total Loans | 34,302 | 29,672 | |
Real Estate - Construction | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | 215 | 100 | |
Total Current | [1] | 92,457 | 66,272 |
Total Loans | 92,672 | 66,372 | |
Real Estate - Construction | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | 200 | 11 | |
Real Estate - Construction | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | 15 | ||
Real Estate - Construction | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | 89 | ||
Real Estate - Construction | One To Four Family Residential | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | 215 | 100 | |
Total Current | [1] | 17,573 | 19,395 |
Total Loans | 17,788 | 19,495 | |
Real Estate - Construction | One To Four Family Residential | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | 200 | 11 | |
Real Estate - Construction | One To Four Family Residential | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | 15 | ||
Real Estate - Construction | One To Four Family Residential | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | 89 | ||
Real Estate - Construction | Other construction, land development and other land | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Current | [1] | 74,884 | 46,877 |
Total Loans | 74,884 | 46,877 | |
Real estate - farmland | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Current | [1] | 11,172 | 11,418 |
Total Loans | 11,172 | 11,418 | |
Real Estate - Non-farm, Non-residential | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | 1,961 | 2,937 | |
Total Current | [1] | 294,746 | 288,743 |
Total Loans | 296,707 | 291,680 | |
Real Estate - Non-farm, Non-residential | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | 307 | 1,637 | |
Real Estate - Non-farm, Non-residential | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | 1,654 | 1,300 | |
Real Estate - Non-farm, Non-residential | Owner Occupied | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | 1,703 | 2,261 | |
Total Current | [1] | 188,799 | 184,963 |
Total Loans | 190,502 | 187,224 | |
Real Estate - Non-farm, Non-residential | Owner Occupied | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | 49 | 1,637 | |
Real Estate - Non-farm, Non-residential | Owner Occupied | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | 1,654 | 624 | |
Real Estate - Non-farm, Non-residential | Non-owner Occupied | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | 258 | 676 | |
Total Current | [1] | 105,947 | 103,780 |
Total Loans | 106,205 | 104,456 | |
Real Estate - Non-farm, Non-residential | Non-owner Occupied | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | 258 | ||
Real Estate - Non-farm, Non-residential | Non-owner Occupied | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | 676 | ||
Consumer Loan | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | 165 | 381 | |
Total Current | [1] | 32,148 | 19,612 |
Total Loans | 32,313 | 19,993 | |
Consumer Loan | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | 21 | 377 | |
Consumer Loan | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | 4 | ||
Consumer Loan | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Past Due | 144 | ||
Other | |||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | |||
Total Current | [1] | 15,400 | 13,680 |
Total Loans | $ 15,400 | $ 13,680 | |
[1] | For purposes of this table only, the "Total Current" column includes loans that are 1-29 days past due. |
Loan Portfolio (Nonaccural Loan
Loan Portfolio (Nonaccural Loans, Loans Past Due Ninety Days and Accruing Interest, and Restructured Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Loan Portfolio [Abstract] | ||
Nonaccrual loans | $ 4,729 | $ 6,175 |
Loans past due 90 days and accruing interest | 2,594 | 1,117 |
Troubled debt restructurings (accruing) | $ 14,590 | $ 15,535 |
Loan Portfolio (Schedule of Loa
Loan Portfolio (Schedule of Loans Acquired Pursuant To Acquisition) (Details) - Virginia Company Bank [Member] - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Acquired loans | $ 51,440 | $ 60,453 |
Performing | ||
Acquired loans | 43,832 | 52,585 |
Receivables Acquired with Deteriorated Credit Quality [Member] | ||
Acquired loans | 7,608 | 7,868 |
Commercial, industrial and agricultural | ||
Acquired loans | 3,092 | 4,025 |
Commercial, industrial and agricultural | Performing | ||
Acquired loans | 2,642 | 3,476 |
Commercial, industrial and agricultural | Receivables Acquired with Deteriorated Credit Quality [Member] | ||
Acquired loans | 450 | 549 |
Real estate - one to four family residential | ||
Acquired loans | 15,669 | 17,393 |
Real estate - one to four family residential | Performing | ||
Acquired loans | 14,504 | 16,245 |
Real estate - one to four family residential | Receivables Acquired with Deteriorated Credit Quality [Member] | ||
Acquired loans | 1,165 | 1,148 |
Real estate - one to four family residential | Closed end first and seconds | ||
Acquired loans | 6,898 | 7,406 |
Real estate - one to four family residential | Closed end first and seconds | Performing | ||
Acquired loans | 5,765 | 6,290 |
Real estate - one to four family residential | Closed end first and seconds | Receivables Acquired with Deteriorated Credit Quality [Member] | ||
Acquired loans | 1,133 | 1,116 |
Real estate - one to four family residential | Home Equity Lines [Member] | ||
Acquired loans | 8,771 | 9,987 |
Real estate - one to four family residential | Home Equity Lines [Member] | Performing | ||
Acquired loans | 8,739 | 9,955 |
Real estate - one to four family residential | Home Equity Lines [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | ||
Acquired loans | 32 | 32 |
Real estate - multifamily residential | ||
Acquired loans | 1,737 | 1,988 |
Real estate - multifamily residential | Performing | ||
Acquired loans | 1,737 | 1,988 |
Real Estate - Construction | ||
Acquired loans | 2,741 | 2,700 |
Real Estate - Construction | Performing | ||
Acquired loans | 2,483 | 2,425 |
Real Estate - Construction | Receivables Acquired with Deteriorated Credit Quality [Member] | ||
Acquired loans | 258 | 275 |
Real Estate - Construction | One To Four Family Residential | ||
Acquired loans | 367 | 515 |
Real Estate - Construction | One To Four Family Residential | Performing | ||
Acquired loans | 367 | 515 |
Real Estate - Construction | Other construction, land development and other land | ||
Acquired loans | 2,374 | 2,185 |
Real Estate - Construction | Other construction, land development and other land | Performing | ||
Acquired loans | 2,116 | 1,910 |
Real Estate - Construction | Other construction, land development and other land | Receivables Acquired with Deteriorated Credit Quality [Member] | ||
Acquired loans | 258 | 275 |
Real Estate - Non-farm, Non-residential | ||
Acquired loans | 27,398 | 33,271 |
Real Estate - Non-farm, Non-residential | Performing | ||
Acquired loans | 21,663 | 27,375 |
Real Estate - Non-farm, Non-residential | Receivables Acquired with Deteriorated Credit Quality [Member] | ||
Acquired loans | 5,735 | 5,896 |
Real Estate - Non-farm, Non-residential | Non-owner Occupied | ||
Acquired loans | 9,952 | 12,447 |
Real Estate - Non-farm, Non-residential | Non-owner Occupied | Performing | ||
Acquired loans | 8,458 | 10,847 |
Real Estate - Non-farm, Non-residential | Non-owner Occupied | Receivables Acquired with Deteriorated Credit Quality [Member] | ||
Acquired loans | 1,494 | 1,600 |
Real Estate - Non-farm, Non-residential | Owner Occupied | ||
Acquired loans | 17,446 | 20,824 |
Real Estate - Non-farm, Non-residential | Owner Occupied | Performing | ||
Acquired loans | 13,205 | 16,528 |
Real Estate - Non-farm, Non-residential | Owner Occupied | Receivables Acquired with Deteriorated Credit Quality [Member] | ||
Acquired loans | 4,241 | 4,296 |
Consumer Loan | ||
Acquired loans | 158 | 276 |
Consumer Loan | Performing | ||
Acquired loans | 158 | 276 |
Other | ||
Acquired loans | 645 | 800 |
Other | Performing | ||
Acquired loans | $ 645 | $ 800 |
Loan Portfolio (Recorded Invest
Loan Portfolio (Recorded Investment in Nonaccrual Loans and Loans Past Due Ninety Days and Accruing Interest by Class) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | ||
Nonaccrual loans | $ 4,729 | $ 6,175 |
Over 90 Days Past Due and Accruing Loans | 2,594 | 1,117 |
Commercial, industrial and agricultural | ||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | ||
Nonaccrual loans | 66 | 193 |
Real estate - one to four family residential | ||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | ||
Nonaccrual loans | 4,225 | 4,578 |
Over 90 Days Past Due and Accruing Loans | 1,134 | 1,117 |
Real estate - one to four family residential | Closed end first and seconds | ||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | ||
Nonaccrual loans | 3,735 | 4,153 |
Over 90 Days Past Due and Accruing Loans | 1,134 | 1,117 |
Real estate - one to four family residential | Home Equity Line of Credit | ||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | ||
Nonaccrual loans | 490 | 425 |
Real Estate - Construction | ||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | ||
Nonaccrual loans | 89 | |
Real Estate - Construction | One To Four Family Residential | ||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | ||
Nonaccrual loans | 89 | |
Real Estate - Non-farm, Non-residential | ||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | ||
Nonaccrual loans | 225 | 1,300 |
Over 90 Days Past Due and Accruing Loans | 1,460 | |
Real Estate - Non-farm, Non-residential | Owner Occupied | ||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | ||
Nonaccrual loans | 225 | 624 |
Over 90 Days Past Due and Accruing Loans | 1,460 | |
Real Estate - Non-farm, Non-residential | Non-owner Occupied | ||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | ||
Nonaccrual loans | 676 | |
Consumer Loan | ||
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | ||
Nonaccrual loans | $ 213 | $ 15 |
Loan Portfolio (Commercial Loan
Loan Portfolio (Commercial Loans by Credit Quality Indicator) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | $ 551,600 | $ 497,970 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 500,493 | 441,518 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 15,171 | 18,368 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 3,846 | 5,110 |
Impaired | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 25,647 | 26,254 |
Receivables Acquired with Deteriorated Credit Quality [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 6,443 | 6,720 |
Commercial, industrial and agricultural | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 116,747 | 98,828 |
Commercial, industrial and agricultural | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 112,293 | 95,440 |
Commercial, industrial and agricultural | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 2,516 | 1,709 |
Commercial, industrial and agricultural | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 246 | 291 |
Commercial, industrial and agricultural | Impaired | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 1,242 | 839 |
Commercial, industrial and agricultural | Receivables Acquired with Deteriorated Credit Quality [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 450 | 549 |
Real estate - multifamily residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 34,302 | 29,672 |
Real estate - multifamily residential | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 34,302 | 29,672 |
Real Estate - Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 92,672 | 66,372 |
Real Estate - Construction | One To Four Family Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 17,788 | 19,495 |
Real Estate - Construction | Other construction, land development and other land | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 74,884 | 46,877 |
Real Estate - Construction | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 83,754 | 57,013 |
Real Estate - Construction | Pass | One To Four Family Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 17,403 | 19,000 |
Real Estate - Construction | Pass | Other construction, land development and other land | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 66,351 | 38,013 |
Real Estate - Construction | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 2,764 | 2,005 |
Real Estate - Construction | Special Mention | One To Four Family Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 133 | 220 |
Real Estate - Construction | Special Mention | Other construction, land development and other land | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 2,631 | 1,785 |
Real Estate - Construction | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 265 | 1,331 |
Real Estate - Construction | Substandard | One To Four Family Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 79 | 89 |
Real Estate - Construction | Substandard | Other construction, land development and other land | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 186 | 1,242 |
Real Estate - Construction | Impaired | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 5,631 | 5,748 |
Real Estate - Construction | Impaired | One To Four Family Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 173 | 186 |
Real Estate - Construction | Impaired | Other construction, land development and other land | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 5,458 | 5,562 |
Real Estate - Construction | Receivables Acquired with Deteriorated Credit Quality [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 258 | 275 |
Real Estate - Construction | Receivables Acquired with Deteriorated Credit Quality [Member] | Other construction, land development and other land | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 258 | 275 |
Real estate - farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 11,172 | 11,418 |
Real estate - farmland | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 10,050 | 10,396 |
Real estate - farmland | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 603 | 318 |
Real estate - farmland | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 165 | |
Real estate - farmland | Impaired | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 519 | 539 |
Real Estate - Non-farm, Non-residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 296,707 | 291,680 |
Real Estate - Non-farm, Non-residential | Owner Occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 190,502 | 187,224 |
Real Estate - Non-farm, Non-residential | Non-owner Occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 106,205 | 104,456 |
Real Estate - Non-farm, Non-residential | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 260,094 | 248,997 |
Real Estate - Non-farm, Non-residential | Pass | Owner Occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 168,843 | 162,103 |
Real Estate - Non-farm, Non-residential | Pass | Non-owner Occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 91,251 | 86,894 |
Real Estate - Non-farm, Non-residential | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 9,288 | 14,336 |
Real Estate - Non-farm, Non-residential | Special Mention | Owner Occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 8,124 | 12,206 |
Real Estate - Non-farm, Non-residential | Special Mention | Non-owner Occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 1,164 | 2,130 |
Real Estate - Non-farm, Non-residential | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 3,335 | 3,323 |
Real Estate - Non-farm, Non-residential | Substandard | Owner Occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 1,909 | 2,283 |
Real Estate - Non-farm, Non-residential | Substandard | Non-owner Occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 1,426 | 1,040 |
Real Estate - Non-farm, Non-residential | Impaired | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 18,255 | 19,128 |
Real Estate - Non-farm, Non-residential | Impaired | Owner Occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 7,385 | 6,336 |
Real Estate - Non-farm, Non-residential | Impaired | Non-owner Occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 10,870 | 12,792 |
Real Estate - Non-farm, Non-residential | Receivables Acquired with Deteriorated Credit Quality [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 5,735 | 5,896 |
Real Estate - Non-farm, Non-residential | Receivables Acquired with Deteriorated Credit Quality [Member] | Owner Occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | 4,241 | 4,296 |
Real Estate - Non-farm, Non-residential | Receivables Acquired with Deteriorated Credit Quality [Member] | Non-owner Occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total commercial loans | $ 1,494 | $ 1,600 |
Loan Portfolio (Consumer Loans,
Loan Portfolio (Consumer Loans, including One to Four Family Residential First and Seconds and Home Equity Lines, by Payment Activity) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Consumer Loans Credit Quality Information And Allowances And Liabilities For Losses On Consumer Loans [Line Items] | ||
Total Consumer loans | $ 385,024 | $ 382,808 |
Performing | ||
Consumer Loans Credit Quality Information And Allowances And Liabilities For Losses On Consumer Loans [Line Items] | ||
Total Consumer loans | 374,033 | 368,783 |
NonPerforming | ||
Consumer Loans Credit Quality Information And Allowances And Liabilities For Losses On Consumer Loans [Line Items] | ||
Total Consumer loans | 10,991 | 14,025 |
Real estate - one to four family residential | ||
Consumer Loans Credit Quality Information And Allowances And Liabilities For Losses On Consumer Loans [Line Items] | ||
Total Consumer loans | 337,311 | 349,135 |
Real estate - one to four family residential | Performing | ||
Consumer Loans Credit Quality Information And Allowances And Liabilities For Losses On Consumer Loans [Line Items] | ||
Total Consumer loans | 326,779 | 335,450 |
Real estate - one to four family residential | NonPerforming | ||
Consumer Loans Credit Quality Information And Allowances And Liabilities For Losses On Consumer Loans [Line Items] | ||
Total Consumer loans | 10,532 | 13,685 |
Real estate - one to four family residential | Closed end first and seconds | ||
Consumer Loans Credit Quality Information And Allowances And Liabilities For Losses On Consumer Loans [Line Items] | ||
Total Consumer loans | 217,733 | 232,826 |
Real estate - one to four family residential | Closed end first and seconds | Performing | ||
Consumer Loans Credit Quality Information And Allowances And Liabilities For Losses On Consumer Loans [Line Items] | ||
Total Consumer loans | 207,741 | 220,016 |
Real estate - one to four family residential | Closed end first and seconds | NonPerforming | ||
Consumer Loans Credit Quality Information And Allowances And Liabilities For Losses On Consumer Loans [Line Items] | ||
Total Consumer loans | 9,992 | 12,810 |
Real estate - one to four family residential | Home Equity Line of Credit | ||
Consumer Loans Credit Quality Information And Allowances And Liabilities For Losses On Consumer Loans [Line Items] | ||
Total Consumer loans | 119,578 | 116,309 |
Real estate - one to four family residential | Home Equity Line of Credit | Performing | ||
Consumer Loans Credit Quality Information And Allowances And Liabilities For Losses On Consumer Loans [Line Items] | ||
Total Consumer loans | 119,038 | 115,434 |
Real estate - one to four family residential | Home Equity Line of Credit | NonPerforming | ||
Consumer Loans Credit Quality Information And Allowances And Liabilities For Losses On Consumer Loans [Line Items] | ||
Total Consumer loans | 540 | 875 |
Consumer Loan | ||
Consumer Loans Credit Quality Information And Allowances And Liabilities For Losses On Consumer Loans [Line Items] | ||
Total Consumer loans | 32,313 | 19,993 |
Consumer Loan | Performing | ||
Consumer Loans Credit Quality Information And Allowances And Liabilities For Losses On Consumer Loans [Line Items] | ||
Total Consumer loans | 31,854 | 19,655 |
Consumer Loan | NonPerforming | ||
Consumer Loans Credit Quality Information And Allowances And Liabilities For Losses On Consumer Loans [Line Items] | ||
Total Consumer loans | 459 | 338 |
Other | ||
Consumer Loans Credit Quality Information And Allowances And Liabilities For Losses On Consumer Loans [Line Items] | ||
Total Consumer loans | 15,400 | 13,680 |
Other | Performing | ||
Consumer Loans Credit Quality Information And Allowances And Liabilities For Losses On Consumer Loans [Line Items] | ||
Total Consumer loans | $ 15,400 | 13,678 |
Other | NonPerforming | ||
Consumer Loans Credit Quality Information And Allowances And Liabilities For Losses On Consumer Loans [Line Items] | ||
Total Consumer loans | $ 2 |
Loan Portfolio (Rollforward of
Loan Portfolio (Rollforward of Allowance for Loan Losses) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Balance at beginning of period | $ 11,327 | $ 13,021 |
Charge-offs | (1,617) | (1,290) |
Recoveries | 740 | 207 |
Provision | 17 | |
Balance at end of period | 10,467 | 11,938 |
Commercial, industrial and agricultural | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Balance at beginning of period | 1,894 | 1,168 |
Charge-offs | (68) | (181) |
Recoveries | 78 | 39 |
Provision | 444 | 535 |
Balance at end of period | 2,348 | 1,561 |
Real estate - one to four family residential | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Balance at beginning of period | 2,404 | 3,562 |
Charge-offs | (1,089) | (782) |
Recoveries | 475 | 94 |
Provision | 134 | (206) |
Balance at end of period | 1,924 | 2,668 |
Real estate - one to four family residential | Closed end first and seconds | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Balance at beginning of period | 1,609 | 1,884 |
Charge-offs | (658) | (622) |
Recoveries | 455 | 87 |
Provision | (71) | 469 |
Balance at end of period | 1,335 | 1,818 |
Real estate - one to four family residential | Home Equity Line of Credit | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Balance at beginning of period | 795 | 1,678 |
Charge-offs | (431) | (160) |
Recoveries | 20 | 7 |
Provision | 205 | (675) |
Balance at end of period | 589 | 850 |
Real estate - multifamily residential | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Balance at beginning of period | 78 | 89 |
Provision | 5 | (6) |
Balance at end of period | 83 | 83 |
Real Estate - Construction | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Balance at beginning of period | 2,718 | 2,905 |
Charge-offs | (102) | |
Recoveries | 6 | 4 |
Provision | 193 | 255 |
Balance at end of period | 2,917 | 3,062 |
Real Estate - Construction | One To Four Family Residential | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Balance at beginning of period | 295 | 235 |
Charge-offs | (102) | |
Recoveries | 5 | 3 |
Provision | (95) | 210 |
Balance at end of period | 205 | 346 |
Real Estate - Construction | Other construction, land development and other land | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Balance at beginning of period | 2,423 | 2,670 |
Recoveries | 1 | 1 |
Provision | 288 | 45 |
Balance at end of period | 2,712 | 2,716 |
Real estate - farmland | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Balance at beginning of period | 272 | 144 |
Provision | (189) | 141 |
Balance at end of period | 83 | 285 |
Real Estate - Non-farm, Non-residential | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Balance at beginning of period | 3,205 | 4,324 |
Charge-offs | (298) | (139) |
Recoveries | 124 | 1 |
Provision | (1,018) | (781) |
Balance at end of period | 2,013 | 3,405 |
Real Estate - Non-farm, Non-residential | Owner Occupied | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Balance at beginning of period | 1,964 | 2,416 |
Charge-offs | (208) | (139) |
Recoveries | 63 | 1 |
Provision | (449) | (214) |
Balance at end of period | 1,370 | 2,064 |
Real Estate - Non-farm, Non-residential | Non-owner Occupied | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Balance at beginning of period | 1,241 | 1,908 |
Charge-offs | (90) | |
Recoveries | 61 | |
Provision | (569) | (567) |
Balance at end of period | 643 | 1,341 |
Consumer Loan | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Balance at beginning of period | 287 | 305 |
Charge-offs | (104) | (34) |
Recoveries | 31 | 43 |
Provision | 260 | (12) |
Balance at end of period | 474 | 302 |
Other | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Balance at beginning of period | 469 | 524 |
Charge-offs | (58) | (52) |
Recoveries | 26 | 26 |
Provision | 188 | 74 |
Balance at end of period | $ 625 | $ 572 |
Loan Portfolio (Allowance for L
Loan Portfolio (Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Class Based on Impairment) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance allocated to loans, Individually evaluated for impairment | $ 3,449 | $ 4,606 | ||
Allowance allocated to loans, Collectively evaluated for impairment | 7,001 | 6,721 | ||
Allowance allocated to loans, total | 10,467 | 11,327 | $ 11,938 | $ 13,021 |
Individually evaluated for impairment, Total Loans | 32,133 | 35,382 | ||
Collectively evaluated for impairment, Total Loans | 896,883 | 837,528 | ||
Total Loans | 936,624 | 880,778 | ||
Receivables Acquired with Deteriorated Credit Quality [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance allocated to loans, Acquired loans - purchased credit impaired | 17 | |||
Acquired loans - purchased credit impaired,Total Loans | 7,608 | 7,868 | ||
Commercial, industrial and agricultural | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance allocated to loans, Individually evaluated for impairment | 1,014 | 562 | ||
Allowance allocated to loans, Collectively evaluated for impairment | 1,334 | 1,332 | ||
Allowance allocated to loans, total | 2,348 | 1,894 | 1,561 | 1,168 |
Individually evaluated for impairment, Total Loans | 1,242 | 839 | ||
Collectively evaluated for impairment, Total Loans | 115,055 | 97,440 | ||
Total Loans | 116,747 | 98,828 | ||
Commercial, industrial and agricultural | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance allocated to loans, Acquired loans - purchased credit impaired | ||||
Acquired loans - purchased credit impaired,Total Loans | 450 | 549 | ||
Real estate - one to four family residential | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance allocated to loans, Individually evaluated for impairment | 204 | 782 | ||
Allowance allocated to loans, Collectively evaluated for impairment | 1,703 | 1,622 | ||
Allowance allocated to loans, total | 1,924 | 2,404 | 2,668 | 3,562 |
Individually evaluated for impairment, Total Loans | 6,171 | 8,788 | ||
Collectively evaluated for impairment, Total Loans | 329,975 | 339,199 | ||
Total Loans | 337,311 | 349,135 | ||
Real estate - one to four family residential | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance allocated to loans, Acquired loans - purchased credit impaired | 17 | |||
Acquired loans - purchased credit impaired,Total Loans | 1,165 | 1,148 | ||
Real estate - one to four family residential | Closed end first and seconds | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance allocated to loans, Individually evaluated for impairment | 154 | 517 | ||
Allowance allocated to loans, Collectively evaluated for impairment | 1,164 | 1,092 | ||
Allowance allocated to loans, total | 1,335 | 1,609 | 1,818 | 1,884 |
Individually evaluated for impairment, Total Loans | 5,946 | 8,163 | ||
Collectively evaluated for impairment, Total Loans | 210,654 | 223,547 | ||
Total Loans | 217,733 | 232,826 | ||
Real estate - one to four family residential | Closed end first and seconds | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance allocated to loans, Acquired loans - purchased credit impaired | 17 | |||
Acquired loans - purchased credit impaired,Total Loans | 1,133 | 1,116 | ||
Real estate - one to four family residential | Home Equity Line of Credit | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance allocated to loans, Individually evaluated for impairment | 50 | 265 | ||
Allowance allocated to loans, Collectively evaluated for impairment | 539 | 530 | ||
Allowance allocated to loans, total | 589 | 795 | 850 | 1,678 |
Individually evaluated for impairment, Total Loans | 225 | 625 | ||
Collectively evaluated for impairment, Total Loans | 119,321 | 115,652 | ||
Total Loans | 119,578 | 116,309 | ||
Real estate - one to four family residential | Home Equity Line of Credit | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance allocated to loans, Acquired loans - purchased credit impaired | ||||
Acquired loans - purchased credit impaired,Total Loans | 32 | 32 | ||
Real estate - multifamily residential | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance allocated to loans, Collectively evaluated for impairment | 83 | 78 | ||
Allowance allocated to loans, total | 83 | 78 | 83 | 89 |
Collectively evaluated for impairment, Total Loans | 34,302 | 29,672 | ||
Total Loans | 34,302 | 29,672 | ||
Real estate - multifamily residential | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance allocated to loans, Acquired loans - purchased credit impaired | ||||
Real Estate - Construction | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance allocated to loans, Individually evaluated for impairment | 1,460 | 1,330 | ||
Allowance allocated to loans, Collectively evaluated for impairment | 1,457 | 1,388 | ||
Allowance allocated to loans, total | 2,917 | 2,718 | 3,062 | 2,905 |
Individually evaluated for impairment, Total Loans | 5,631 | 5,748 | ||
Collectively evaluated for impairment, Total Loans | 86,783 | 60,349 | ||
Total Loans | 92,672 | 66,372 | ||
Real Estate - Construction | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance allocated to loans, Acquired loans - purchased credit impaired | ||||
Acquired loans - purchased credit impaired,Total Loans | 258 | 275 | ||
Real Estate - Construction | One To Four Family Residential | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance allocated to loans, Individually evaluated for impairment | 58 | 67 | ||
Allowance allocated to loans, Collectively evaluated for impairment | 147 | 228 | ||
Allowance allocated to loans, total | 205 | 295 | 346 | 235 |
Individually evaluated for impairment, Total Loans | 173 | 186 | ||
Collectively evaluated for impairment, Total Loans | 17,615 | 19,309 | ||
Total Loans | 17,788 | 19,495 | ||
Real Estate - Construction | One To Four Family Residential | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance allocated to loans, Acquired loans - purchased credit impaired | ||||
Real Estate - Construction | Other construction, land development and other land | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance allocated to loans, Individually evaluated for impairment | 1,402 | 1,263 | ||
Allowance allocated to loans, Collectively evaluated for impairment | 1,310 | 1,160 | ||
Allowance allocated to loans, total | 2,712 | 2,423 | 2,716 | 2,670 |
Individually evaluated for impairment, Total Loans | 5,458 | 5,562 | ||
Collectively evaluated for impairment, Total Loans | 69,168 | 41,040 | ||
Total Loans | 74,884 | 46,877 | ||
Real Estate - Construction | Other construction, land development and other land | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance allocated to loans, Acquired loans - purchased credit impaired | ||||
Acquired loans - purchased credit impaired,Total Loans | 258 | 275 | ||
Real estate - farmland | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance allocated to loans, Individually evaluated for impairment | 42 | 210 | ||
Allowance allocated to loans, Collectively evaluated for impairment | 41 | 62 | ||
Allowance allocated to loans, total | 83 | 272 | 285 | 144 |
Individually evaluated for impairment, Total Loans | 519 | 539 | ||
Collectively evaluated for impairment, Total Loans | 10,653 | 10,879 | ||
Total Loans | 11,172 | 11,418 | ||
Real estate - farmland | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance allocated to loans, Acquired loans - purchased credit impaired | ||||
Real Estate - Non-farm, Non-residential | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance allocated to loans, Individually evaluated for impairment | 657 | 1,634 | ||
Allowance allocated to loans, Collectively evaluated for impairment | 1,356 | 1,571 | ||
Allowance allocated to loans, total | 2,013 | 3,205 | 3,405 | 4,324 |
Individually evaluated for impairment, Total Loans | 18,255 | 19,128 | ||
Collectively evaluated for impairment, Total Loans | 272,717 | 266,656 | ||
Total Loans | 296,707 | 291,680 | ||
Real Estate - Non-farm, Non-residential | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance allocated to loans, Acquired loans - purchased credit impaired | ||||
Acquired loans - purchased credit impaired,Total Loans | 5,735 | 5,896 | ||
Real Estate - Non-farm, Non-residential | Owner Occupied | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance allocated to loans, Individually evaluated for impairment | 470 | 824 | ||
Allowance allocated to loans, Collectively evaluated for impairment | 900 | 1,140 | ||
Allowance allocated to loans, total | 1,370 | 1,964 | 2,064 | 2,416 |
Individually evaluated for impairment, Total Loans | 7,385 | 6,336 | ||
Collectively evaluated for impairment, Total Loans | 178,876 | 176,592 | ||
Total Loans | 190,502 | 187,224 | ||
Real Estate - Non-farm, Non-residential | Owner Occupied | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance allocated to loans, Acquired loans - purchased credit impaired | ||||
Acquired loans - purchased credit impaired,Total Loans | 4,241 | 4,296 | ||
Real Estate - Non-farm, Non-residential | Non-owner Occupied | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance allocated to loans, Individually evaluated for impairment | 187 | 810 | ||
Allowance allocated to loans, Collectively evaluated for impairment | 456 | 431 | ||
Allowance allocated to loans, total | 643 | 1,241 | 1,341 | 1,908 |
Individually evaluated for impairment, Total Loans | 10,870 | 12,792 | ||
Collectively evaluated for impairment, Total Loans | 93,841 | 90,064 | ||
Total Loans | 106,205 | 104,456 | ||
Real Estate - Non-farm, Non-residential | Non-owner Occupied | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance allocated to loans, Acquired loans - purchased credit impaired | ||||
Acquired loans - purchased credit impaired,Total Loans | 1,494 | 1,600 | ||
Consumer Loan | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance allocated to loans, Individually evaluated for impairment | 72 | 88 | ||
Allowance allocated to loans, Collectively evaluated for impairment | 402 | 199 | ||
Allowance allocated to loans, total | 474 | 287 | 302 | 305 |
Individually evaluated for impairment, Total Loans | 315 | 338 | ||
Collectively evaluated for impairment, Total Loans | 31,998 | 19,655 | ||
Total Loans | 32,313 | 19,993 | ||
Consumer Loan | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance allocated to loans, Acquired loans - purchased credit impaired | ||||
Other | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance allocated to loans, Collectively evaluated for impairment | 625 | 469 | ||
Allowance allocated to loans, total | 625 | 469 | $ 572 | $ 524 |
Individually evaluated for impairment, Total Loans | 2 | |||
Collectively evaluated for impairment, Total Loans | 15,400 | 13,678 | ||
Total Loans | 15,400 | $ 13,680 | ||
Other | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance allocated to loans, Acquired loans - purchased credit impaired |
Loan Portfolio (Impairment by C
Loan Portfolio (Impairment by Class of Loans) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | ||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | [1] | $ 32,133 | $ 35,382 |
Unpaid Principal Balance | [1] | 32,502 | 35,763 |
Recorded Investment With No Allowance | [1] | 18,994 | 15,382 |
Recorded Investment With Allowance | [1] | 13,139 | 20,000 |
Related Allowance | [1] | 3,449 | 4,606 |
Average Recorded Investment | [1] | 33,177 | 36,336 |
Interest Income Recognized | [1] | 1,252 | 1,691 |
Commercial, industrial and agricultural | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 1,242 | 839 | |
Unpaid Principal Balance | 1,244 | 839 | |
Recorded Investment With No Allowance | 66 | ||
Recorded Investment With Allowance | 1,176 | 839 | |
Related Allowance | 1,014 | 562 | |
Average Recorded Investment | 970 | 753 | |
Interest Income Recognized | 48 | 49 | |
Real estate - one to four family residential | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 6,171 | 8,788 | |
Unpaid Principal Balance | 6,521 | 9,155 | |
Recorded Investment With No Allowance | 3,339 | 4,156 | |
Recorded Investment With Allowance | 2,832 | 4,632 | |
Related Allowance | 204 | 782 | |
Average Recorded Investment | 7,531 | 8,907 | |
Interest Income Recognized | 257 | 432 | |
Real estate - one to four family residential | Closed end first and seconds | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 5,946 | 8,163 | |
Unpaid Principal Balance | 6,296 | 8,530 | |
Recorded Investment With No Allowance | 3,164 | 3,981 | |
Recorded Investment With Allowance | 2,782 | 4,182 | |
Related Allowance | 154 | 517 | |
Average Recorded Investment | 7,010 | 8,386 | |
Interest Income Recognized | 255 | 416 | |
Real estate - one to four family residential | Home Equity Line of Credit | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 225 | 625 | |
Unpaid Principal Balance | 225 | 625 | |
Recorded Investment With No Allowance | 175 | 175 | |
Recorded Investment With Allowance | 50 | 450 | |
Related Allowance | 50 | 265 | |
Average Recorded Investment | 521 | 521 | |
Interest Income Recognized | 2 | 16 | |
Real Estate - Construction | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 5,631 | 5,748 | |
Unpaid Principal Balance | 5,631 | 5,748 | |
Recorded Investment With No Allowance | 17 | 20 | |
Recorded Investment With Allowance | 5,614 | 5,728 | |
Related Allowance | 1,460 | 1,330 | |
Average Recorded Investment | 5,679 | 5,846 | |
Interest Income Recognized | 200 | 268 | |
Real Estate - Construction | One To Four Family Residential | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 173 | 186 | |
Unpaid Principal Balance | 173 | 186 | |
Recorded Investment With No Allowance | 17 | 20 | |
Recorded Investment With Allowance | 156 | 166 | |
Related Allowance | 58 | 67 | |
Average Recorded Investment | 179 | 235 | |
Interest Income Recognized | 6 | 8 | |
Real Estate - Construction | Other construction, land development and other land | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 5,458 | 5,562 | |
Unpaid Principal Balance | 5,458 | 5,562 | |
Recorded Investment With Allowance | 5,458 | 5,562 | |
Related Allowance | 1,402 | 1,263 | |
Average Recorded Investment | 5,500 | 5,611 | |
Interest Income Recognized | 194 | 260 | |
Real estate - farmland | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 519 | 539 | |
Unpaid Principal Balance | 522 | 541 | |
Recorded Investment With No Allowance | 262 | ||
Recorded Investment With Allowance | 257 | 539 | |
Related Allowance | 42 | 210 | |
Average Recorded Investment | 528 | 167 | |
Interest Income Recognized | 25 | 36 | |
Real Estate - Non-farm, Non-residential | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 18,255 | 19,128 | |
Unpaid Principal Balance | 18,256 | 19,128 | |
Recorded Investment With No Allowance | 15,305 | 11,192 | |
Recorded Investment With Allowance | 2,950 | 7,936 | |
Related Allowance | 657 | 1,634 | |
Average Recorded Investment | 18,143 | 20,307 | |
Interest Income Recognized | 709 | 887 | |
Real Estate - Non-farm, Non-residential | Owner Occupied | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 7,385 | 6,336 | |
Unpaid Principal Balance | 7,386 | 6,336 | |
Recorded Investment With No Allowance | 5,725 | 3,506 | |
Recorded Investment With Allowance | 1,660 | 2,830 | |
Related Allowance | 470 | 824 | |
Average Recorded Investment | 5,775 | 8,995 | |
Interest Income Recognized | 296 | 292 | |
Real Estate - Non-farm, Non-residential | Non-owner Occupied | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 10,870 | 12,792 | |
Unpaid Principal Balance | 10,870 | 12,792 | |
Recorded Investment With No Allowance | 9,580 | 7,686 | |
Recorded Investment With Allowance | 1,290 | 5,106 | |
Related Allowance | 187 | 810 | |
Average Recorded Investment | 12,368 | 11,312 | |
Interest Income Recognized | 413 | 595 | |
Consumer Loan | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 315 | 338 | |
Unpaid Principal Balance | 328 | 350 | |
Recorded Investment With No Allowance | 5 | 12 | |
Recorded Investment With Allowance | 310 | 326 | |
Related Allowance | 72 | 88 | |
Average Recorded Investment | 326 | 352 | |
Interest Income Recognized | $ 13 | 19 | |
Other | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 2 | ||
Unpaid Principal Balance | 2 | ||
Recorded Investment With No Allowance | 2 | ||
Average Recorded Investment | $ 4 | ||
[1] | PCI loans are excluded from this table. |
Loan Portfolio (Summary of the
Loan Portfolio (Summary of the Changes in the Accretable Yield of the PCI Loan Portfolio) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Loan Portfolio [Abstract] | ||||
Balance at beginning of period | $ 1,114 | $ 925 | $ 1,280 | $ 1,131 |
Accretion | (127) | (110) | (381) | (316) |
Reclassification of nonaccretable difference due to improvement in expected cash flows | 24 | 56 | ||
Other changes, net | (11) | 45 | ||
Balance at end of period | $ 1,000 | $ 815 | $ 1,000 | $ 815 |
Loan Portfolio (Loans Modified
Loan Portfolio (Loans Modified as Troubled Debt Restructurings) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016USD ($)loan | Sep. 30, 2016USD ($)loan | ||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 1 | 7 | |
Pre-Modification Recorded Balance | $ 32 | $ 740 | |
Post-Modification Recorded Balance | [1] | $ 32 | $ 740 |
Commercial, industrial and agricultural | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 1 | ||
Pre-Modification Recorded Balance | $ 68 | ||
Post-Modification Recorded Balance | [1] | $ 68 | |
Real estate - one to four family residential | Closed end first and seconds | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 5 | ||
Pre-Modification Recorded Balance | $ 640 | ||
Post-Modification Recorded Balance | [1] | $ 640 | |
Real Estate - Non-farm, Non-residential | Owner Occupied | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 1 | 1 | |
Pre-Modification Recorded Balance | $ 32 | $ 32 | |
Post-Modification Recorded Balance | [1] | $ 32 | $ 32 |
[1] | The period end balances are inclusive of all partial paydowns and charge-offs since the modification date. Loans modified as TDRs that were fully paid down, charged-off, or foreclosed upon by period end are not reported. |
Loan Portfolio (Loans Modifie59
Loan Portfolio (Loans Modified as Troubled Debt Restructurings that Subsequently Defaulted) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016USD ($)loan | Sep. 30, 2016USD ($)loan | Sep. 30, 2015USD ($)loan | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Number of loans modified that subsequently defaulted | loan | 1 | 2 | 1 |
Recorded Balance | $ | $ 39 | $ 389 | $ 68 |
Real estate - one to four family residential | Closed end first and seconds | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Number of loans modified that subsequently defaulted | loan | 1 | 2 | 1 |
Recorded Balance | $ | $ 39 | $ 389 | $ 68 |
Deferred Income Taxes (Narrativ
Deferred Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Deferred income taxes, net | $ 11,188 | $ 15,060 | [1] |
[1] | Derived from audited consolidated financial statements. |
Bank Premises and Equipment (Na
Bank Premises and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Bank Premises and Equipment [Abstract] | ||
Depreciation and amortization | $ 1,881 | $ 1,884 |
Bank Premises and Equipment (Sc
Bank Premises and Equipment (Schedule of Bank Premises and Equipment) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Property Plant And Equipment [Line Items] | |||
Bank premises and equipment, Gross | $ 58,538 | $ 56,845 | |
Less accumulated depreciation | (30,624) | (29,009) | |
Net balance | 27,914 | 27,836 | [1] |
Land and Improvements [Member] | |||
Property Plant And Equipment [Line Items] | |||
Bank premises and equipment, Gross | 6,872 | 6,837 | |
Buildings and Leasehold Improvements [Member] | |||
Property Plant And Equipment [Line Items] | |||
Bank premises and equipment, Gross | 28,724 | 28,487 | |
Furniture, Fixtures and Equipment [Member] | |||
Property Plant And Equipment [Line Items] | |||
Bank premises and equipment, Gross | 20,797 | 20,385 | |
Construction in Progress [Member] | |||
Property Plant And Equipment [Line Items] | |||
Bank premises and equipment, Gross | $ 2,145 | $ 1,136 | |
[1] | Derived from audited consolidated financial statements. |
Borrowings (Narrative) (Details
Borrowings (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Federal Home Loan Bank advances, short term, daily credit rate | $ 13,100 | ||
Federal Home Loan Bank advances, short term, fixed rate | 114,100 | $ 114,400 | |
Long-term advances from the FHLB | $ 0 | 0 | |
Percentage of FHLB line of credit to asset | 30.00% | ||
Line of credit with FHLB, equal to 30% of assets | $ 388,300 | ||
Accrued interest payable | 942 | 590 | [1] |
Federal Home Loan Bank Advances | |||
Debt Instrument [Line Items] | |||
Accrued interest payable | 28 | 14 | |
Federal Home Loan Bank Advances | |||
Debt Instrument [Line Items] | |||
Line of credit, outstanding | 225,300 | ||
Line of credit available | 98,200 | ||
Loans pledged as collateral | 303,300 | $ 307,200 | |
Short-term and long-term borrowings outstanding under FHLB line of credit | 225,300 | ||
Sun Trust Bank | |||
Debt Instrument [Line Items] | |||
Line of credit, maximum | 20,000 | ||
Community Bankers Bank | |||
Debt Instrument [Line Items] | |||
Line of credit, maximum | 15,000 | ||
Pacific Coast Bankers Bank | |||
Debt Instrument [Line Items] | |||
Line of credit, maximum | $ 5,000 | ||
[1] | Derived from audited consolidated financial statements. |
Borrowings (Federal Funds Purch
Borrowings (Federal Funds Purchased and Repurchase Agreements) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | ||
Line of Credit Facility [Line Items] | |||
Balance outstanding at period end | $ 127,150 | $ 114,413 | [1] |
Maximum balance at any month end during the period | 127,150 | 114,413 | |
Average balance for the period | $ 114,289 | $ 89,580 | |
Weighted average rate for the period | 0.42% | 0.22% | |
Weighted average rate at period end | 0.41% | 0.32% | |
Federal Funds Purchased | |||
Line of Credit Facility [Line Items] | |||
Maximum balance at any month end during the period | $ 2,000 | $ 2,440 | |
Average balance for the period | $ 57 | $ 63 | |
Weighted average rate for the period | 0.93% | 0.72% | |
Weighted average rate at period end | 0.00% | 0.00% | |
Repurchase Agreements | |||
Line of Credit Facility [Line Items] | |||
Balance outstanding at period end | $ 5,937 | $ 5,015 | |
Maximum balance at any month end during the period | 11,942 | 12,392 | |
Average balance for the period | $ 5,983 | $ 8,002 | |
Weighted average rate for the period | 0.47% | 0.57% | |
Weighted average rate at period end | 0.47% | 0.47% | |
[1] | Derived from audited consolidated financial statements. |
Net Income Per Common Share (Na
Net Income Per Common Share (Narrative) (Details) - shares | Jun. 12, 2013 | Sep. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 |
Earnings Per Share Disclosure [Line Items] | ||||
Shares of common stock excluded from the computation of diluted earnings(loss)per common share | 65,775 | 65,775 | 71,525 | |
Series B Non-Voting Mandatorily Convertible Non-Cumulative Preferred | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Issuance of shares under private placement | 5,240,192 |
Net Income Per Common Share (We
Net Income Per Common Share (Weighted Average Number of Common Shares used in Computing Earnings Per Common Share and Effect on Potential Dilutive Common Stock) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Basic Net Income Per Common Share | ||||
Net income available to common shareholders | $ 1,999 | $ 2,010 | $ 6,136 | $ 4,740 |
Less: Net income allocated to participating securities, Series B Preferred Stock | 571 | 577 | 1,755 | 1,361 |
Net income (loss) allocated to common shareholders | $ 1,428 | $ 1,433 | $ 4,381 | $ 3,379 |
Weighted average common shares outstanding for basic net income per common share | 13,105,923 | 13,029,550 | 13,079,989 | 13,013,005 |
Basic net income per common share | $ 0.10 | $ 0.11 | $ 0.33 | $ 0.26 |
Diluted Net Income Per Common Share | ||||
Net income available to common shareholders | $ 1,999 | $ 2,010 | $ 6,136 | $ 4,740 |
Weighted average common shares outstanding for basic net income per common share | 13,105,923 | 13,029,550 | 13,079,989 | 13,013,005 |
Effect of dilutive securities, stock options | ||||
Effect of dilutive securities, Series B Preferred Stock | 5,240,192 | 5,240,192 | 5,240,192 | 5,240,192 |
Weighted average common shares outstanding for diluted net income per common share | 18,346,115 | 18,269,742 | 18,320,181 | 18,253,197 |
Diluted net income per common share | $ 0.10 | $ 0.11 | $ 0.33 | $ 0.26 |
Stock Based Compensation Plan67
Stock Based Compensation Plans (Narrative) (Details) - USD ($) | May 19, 2016 | Apr. 29, 2016 | Mar. 24, 2016 | Mar. 19, 2015 | Oct. 15, 2014 | Oct. 14, 2014 | Apr. 19, 2007 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Apr. 17, 2003 | Sep. 21, 2000 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted | 71,500 | ||||||||||||
Restricted stock expense | $ 95,000 | $ 61,000 | $ 247,000 | $ 175,000 | |||||||||
Stock compensation expense | $ 247,000 | $ 175,000 | |||||||||||
Granted, per share price | $ 7 | $ 6.82 | |||||||||||
Unrecognized compensation expense related to restricted stock awards | 733,000 | $ 733,000 | |||||||||||
Granted, options | 0 | 0 | |||||||||||
Exercises, options | 0 | 0 | |||||||||||
Stock option expense | 0 | $ 0 | $ 0 | $ 0 | |||||||||
Unrecognized compensation expense related to stock options | $ 0 | $ 0 | |||||||||||
2000 Plan | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of common stock | 400,000 | ||||||||||||
2003 Plan | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of common stock | 400,000 | ||||||||||||
Number of common stock available to be granted | 0 | ||||||||||||
2007 Plan | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of additional shares authorized for issuance | 400,000 | ||||||||||||
2007 Plan | Restricted Stock | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted | 65,000 | ||||||||||||
2007 Plan | Share-based Compensation Award, Tranche One [Member] | Restricted Stock Time Based Awards [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Vesting percentage | 50.00% | ||||||||||||
2007 Plan | Share-based Compensation Award, Tranche Two [Member] | Restricted Stock Performance Based Awards [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Vesting percentage | 50.00% | ||||||||||||
2007 Plan | Executive Officers [Member] | Restricted Stock | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted | 45,000 | 42,500 | |||||||||||
Granted, per share price | $ 6.80 | $ 6.28 | $ 6.10 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | On April 29, 2016, the Company granted 6,500 shares of restricted stock under the 2007 Plan to various senior officers of the Bank. All of the shares are subject to time vesting over a one-year period and will vest on April 29, 2017. On March 24, 2016, the Company granted 65,000 shares of restricted stock under the 2007 Plan to its executive officers. Fifty percent (50%) of the shares are subject to time vesting in five equal annual installments beginning on March 31, 2017. The remaining fifty percent (50%) of the shares are subject to performance vesting and will vest on March 31, 2019 to the extent certain financial performance requirements for fiscal year 2018 are met. On March 19, 2015, the Company granted 45,000 shares of restricted stock under the 2007 Plan to its executive officers. Fifty percent (50%) of the shares are subject to time vesting in five equal annual installments beginning on March 31, 2016. The remaining fifty percent (50%) of the shares are subject to performance vesting and will vest on March 31, 2018 to the extent certain financial performance requirements for fiscal year 2017 are met. On October 15, 2014, the Company granted 42,500 shares of restricted stock under the 2007 Plan to its executive officers. Fifty percent (50%) of the shares are subject to time vesting in five equal annual installments beginning on March 31, 2015. The remaining fifty percent (50%) of the shares are subject to performance vesting and will vest on March 31, 2017 to the extent certain financial performance requirements for fiscal year 2016 are met. | ||||||||||||
2007 Plan | Executive Officers [Member] | Share-based Compensation Award, Tranche One [Member] | Restricted Stock Time Based Awards [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Vesting percentage | 50.00% | 50.00% | |||||||||||
2007 Plan | Executive Officers [Member] | Share-based Compensation Award, Tranche Two [Member] | Restricted Stock Performance Based Awards [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Vesting percentage | 50.00% | 50.00% | |||||||||||
2007 Plan | Senior Officers [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Granted | 6,500 | ||||||||||||
2016 Plan [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of common stock available to be granted | 484,232 | 484,232 | |||||||||||
Number of additional shares authorized for issuance | 500,000 |
Stock Based Compensation Plan68
Stock Based Compensation Plans (Stock Option Activity and Related Information) (Details) | 9 Months Ended |
Sep. 30, 2016USD ($)$ / sharesshares | |
Options Outstanding | |
Stock options outstanding, beginning balance | shares | 67,525 |
Stock options outstanding, forfeited | shares | (1,750) |
Stock options outstanding, ending balance | shares | 65,775 |
Stock options exercisable, Ending balance | shares | 65,775 |
Weighted Average Exercise Price | |
Stock options outstanding, Weighted Average Exercise Price, beginning balance | $ / shares | $ 18.12 |
Stock options outstanding, Weighted Average Exercisable Price, Forfeited | $ / shares | 20.07 |
Stock options outstanding, Weighted Average Exercise Price, ending balance | $ / shares | 18.07 |
Stock options exercisable, Weighted Average Exercise Price | $ / shares | $ 18.07 |
Remaining Contractual Life | |
Stock options outstanding, Remaining Contractual Life (in years) | 10 months 13 days |
Stock options exercisable, Remaining Contractual Life (in years) | 10 months 13 days |
Aggregate Intrinsic Value | |
Stock options outstanding, Aggregated Intrinsic Value | $ | |
Stock options exercisable, Aggregate Intrinsic Value | $ |
Stock Based Compensation Plan69
Stock Based Compensation Plans (Stock Options Outstanding and Exercisable) (Details) - $ / shares | 9 Months Ended | ||
Sep. 30, 2016 | Dec. 31, 2015 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Stock Options Outstanding, Exercise Price | $ 18.07 | $ 18.12 | |
Range One | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Stock Options Outstanding, Exercise Price | $ 21.16 | ||
Stock Options Outstanding, Number Outstanding | 27,775 | ||
Stock Options Outstanding, Weighted Average Remaining Term | [1] | 0 years | |
Range Two | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Stock Options Outstanding, Exercise Price | $ 19.25 | ||
Stock Options Outstanding, Number Outstanding | 19,000 | ||
Stock Options Outstanding, Weighted Average Remaining Term | 1 year | ||
Range Three | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Stock Options Outstanding, Exercise Price | $ 12.36 | ||
Stock Options Outstanding, Number Outstanding | 19,000 | ||
Stock Options Outstanding, Weighted Average Remaining Term | 2 years | ||
Range Four | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Stock Options Outstanding, Exercise Price | $ 18.07 | ||
Stock Options Outstanding, Number Outstanding | 65,775 | ||
Stock Options Outstanding, Weighted Average Remaining Term | 10 months 13 days | ||
[1] | These options expired on October 1, 2016. |
Stock Based Compensation Plan70
Stock Based Compensation Plans (Nonvested Shares in Relation to Restricted Stock Awards and Changes) (Details) - $ / shares | Apr. 29, 2016 | Sep. 30, 2016 |
Shares | ||
Nonvested as of December 31, 2015 | 121,271 | |
Granted | 71,500 | |
Vested | (15,550) | |
Nonvested as of June 30, 2016 | 177,221 | |
Weighted-Average Price | ||
Nonvested as of December 31, 2015 | $ 6.01 | |
Granted | $ 7 | 6.82 |
Vested | 5.11 | |
Nonvested as of June 30, 2015 | $ 6.42 |
Employee Benefit Plan - Pensi71
Employee Benefit Plan - Pension (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Employee Benefit Plan - Pension [Abstract] | ||
Defined benefit plan, credited service period | 10 years | |
Defined benefit plan number of years for calculating average annual interest rate | 2 years | |
Defined contribution plan, employer discretionary contribution amount | $ 0 |
Employee Benefit Plan - Pensi72
Employee Benefit Plan - Pension (Components of Net Periodic Pension Benefit Plan) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Components of net periodic pension cost (benefit) | ||||
Interest (credit) cost | $ (18) | $ 101 | $ 179 | $ 303 |
Expected charge (return) on plan assets | 29 | (178) | (288) | (535) |
Amortization of prior service cost | 2 | 4 | 7 | |
Recognized net actuarial loss | (5) | 26 | 48 | 80 |
Net settlement loss | 29 | 82 | ||
Net periodic pension cost (benefit) | $ 6 | $ (20) | $ (57) | $ (63) |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Assets Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Assets and Liabilities At Fair Value On Recurring Basis [Line Items] | |||
Total securities available for sale | $ 232,925 | $ 230,943 | [1] |
Fair Value on Recurring Basis | |||
Assets and Liabilities At Fair Value On Recurring Basis [Line Items] | |||
Total securities available for sale | 232,925 | 230,943 | |
Fair Value on Recurring Basis | Obligations of U.S. Government Agencies [Member] | |||
Assets and Liabilities At Fair Value On Recurring Basis [Line Items] | |||
Total securities available for sale | 9,262 | ||
Fair Value on Recurring Basis | SBA Pool securities [Member] | |||
Assets and Liabilities At Fair Value On Recurring Basis [Line Items] | |||
Total securities available for sale | 66,524 | 63,826 | |
Fair Value on Recurring Basis | Residential Mortgage Backed Securities [Member] | |||
Assets and Liabilities At Fair Value On Recurring Basis [Line Items] | |||
Total securities available for sale | 27,543 | 23,903 | |
Fair Value on Recurring Basis | Commercial Mortgage Backed Securities [Member] | |||
Assets and Liabilities At Fair Value On Recurring Basis [Line Items] | |||
Total securities available for sale | 27,440 | 18,315 | |
Fair Value on Recurring Basis | Agency CMO securities [Member] | |||
Assets and Liabilities At Fair Value On Recurring Basis [Line Items] | |||
Total securities available for sale | 54,430 | 52,171 | |
Fair Value on Recurring Basis | Non agency CMO securities [Member] | |||
Assets and Liabilities At Fair Value On Recurring Basis [Line Items] | |||
Total securities available for sale | 47 | 61 | |
Fair Value on Recurring Basis | State and political subdivisions [Member] | |||
Assets and Liabilities At Fair Value On Recurring Basis [Line Items] | |||
Total securities available for sale | 54,916 | 61,405 | |
Fair Value on Recurring Basis | Corporate Securities [Member] | |||
Assets and Liabilities At Fair Value On Recurring Basis [Line Items] | |||
Total securities available for sale | 2,025 | 2,000 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value on Recurring Basis | |||
Assets and Liabilities At Fair Value On Recurring Basis [Line Items] | |||
Total securities available for sale | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value on Recurring Basis | SBA Pool securities [Member] | |||
Assets and Liabilities At Fair Value On Recurring Basis [Line Items] | |||
Total securities available for sale | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value on Recurring Basis | Residential Mortgage Backed Securities [Member] | |||
Assets and Liabilities At Fair Value On Recurring Basis [Line Items] | |||
Total securities available for sale | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value on Recurring Basis | Commercial Mortgage Backed Securities [Member] | |||
Assets and Liabilities At Fair Value On Recurring Basis [Line Items] | |||
Total securities available for sale | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value on Recurring Basis | Agency CMO securities [Member] | |||
Assets and Liabilities At Fair Value On Recurring Basis [Line Items] | |||
Total securities available for sale | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value on Recurring Basis | Non agency CMO securities [Member] | |||
Assets and Liabilities At Fair Value On Recurring Basis [Line Items] | |||
Total securities available for sale | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value on Recurring Basis | State and political subdivisions [Member] | |||
Assets and Liabilities At Fair Value On Recurring Basis [Line Items] | |||
Total securities available for sale | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value on Recurring Basis | Corporate Securities [Member] | |||
Assets and Liabilities At Fair Value On Recurring Basis [Line Items] | |||
Total securities available for sale | |||
Significant Other Observable Inputs (Level 2) | Fair Value on Recurring Basis | |||
Assets and Liabilities At Fair Value On Recurring Basis [Line Items] | |||
Total securities available for sale | 232,925 | 230,943 | |
Significant Other Observable Inputs (Level 2) | Fair Value on Recurring Basis | Obligations of U.S. Government Agencies [Member] | |||
Assets and Liabilities At Fair Value On Recurring Basis [Line Items] | |||
Total securities available for sale | 9,262 | ||
Significant Other Observable Inputs (Level 2) | Fair Value on Recurring Basis | SBA Pool securities [Member] | |||
Assets and Liabilities At Fair Value On Recurring Basis [Line Items] | |||
Total securities available for sale | 66,524 | 63,826 | |
Significant Other Observable Inputs (Level 2) | Fair Value on Recurring Basis | Residential Mortgage Backed Securities [Member] | |||
Assets and Liabilities At Fair Value On Recurring Basis [Line Items] | |||
Total securities available for sale | 27,543 | 23,903 | |
Significant Other Observable Inputs (Level 2) | Fair Value on Recurring Basis | Commercial Mortgage Backed Securities [Member] | |||
Assets and Liabilities At Fair Value On Recurring Basis [Line Items] | |||
Total securities available for sale | 27,440 | 18,315 | |
Significant Other Observable Inputs (Level 2) | Fair Value on Recurring Basis | Agency CMO securities [Member] | |||
Assets and Liabilities At Fair Value On Recurring Basis [Line Items] | |||
Total securities available for sale | 54,430 | 52,171 | |
Significant Other Observable Inputs (Level 2) | Fair Value on Recurring Basis | Non agency CMO securities [Member] | |||
Assets and Liabilities At Fair Value On Recurring Basis [Line Items] | |||
Total securities available for sale | 47 | 61 | |
Significant Other Observable Inputs (Level 2) | Fair Value on Recurring Basis | State and political subdivisions [Member] | |||
Assets and Liabilities At Fair Value On Recurring Basis [Line Items] | |||
Total securities available for sale | 54,916 | 61,405 | |
Significant Other Observable Inputs (Level 2) | Fair Value on Recurring Basis | Corporate Securities [Member] | |||
Assets and Liabilities At Fair Value On Recurring Basis [Line Items] | |||
Total securities available for sale | 2,025 | 2,000 | |
Significant Unobservable Inputs (Level 3) | Fair Value on Recurring Basis | |||
Assets and Liabilities At Fair Value On Recurring Basis [Line Items] | |||
Total securities available for sale | |||
Significant Unobservable Inputs (Level 3) | Fair Value on Recurring Basis | SBA Pool securities [Member] | |||
Assets and Liabilities At Fair Value On Recurring Basis [Line Items] | |||
Total securities available for sale | |||
Significant Unobservable Inputs (Level 3) | Fair Value on Recurring Basis | Residential Mortgage Backed Securities [Member] | |||
Assets and Liabilities At Fair Value On Recurring Basis [Line Items] | |||
Total securities available for sale | |||
Significant Unobservable Inputs (Level 3) | Fair Value on Recurring Basis | Commercial Mortgage Backed Securities [Member] | |||
Assets and Liabilities At Fair Value On Recurring Basis [Line Items] | |||
Total securities available for sale | |||
Significant Unobservable Inputs (Level 3) | Fair Value on Recurring Basis | Agency CMO securities [Member] | |||
Assets and Liabilities At Fair Value On Recurring Basis [Line Items] | |||
Total securities available for sale | |||
Significant Unobservable Inputs (Level 3) | Fair Value on Recurring Basis | Non agency CMO securities [Member] | |||
Assets and Liabilities At Fair Value On Recurring Basis [Line Items] | |||
Total securities available for sale | |||
Significant Unobservable Inputs (Level 3) | Fair Value on Recurring Basis | State and political subdivisions [Member] | |||
Assets and Liabilities At Fair Value On Recurring Basis [Line Items] | |||
Total securities available for sale | |||
Significant Unobservable Inputs (Level 3) | Fair Value on Recurring Basis | Corporate Securities [Member] | |||
Assets and Liabilities At Fair Value On Recurring Basis [Line Items] | |||
Total securities available for sale | |||
Portion at Fair Value Measurement [Member] | |||
Assets and Liabilities At Fair Value On Recurring Basis [Line Items] | |||
Total securities available for sale | 232,925 | 230,943 | |
Portion at Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) | |||
Assets and Liabilities At Fair Value On Recurring Basis [Line Items] | |||
Total securities available for sale | $ 232,925 | $ 230,943 | |
[1] | Derived from audited consolidated financial statements. |
Fair Value Measurements (Assets
Fair Value Measurements (Assets Measured at Fair Value on Non-Recurring Basis) (Details) - Portion at Fair Value Measurement [Member] - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a non-recurring basis | $ 1,244,266 | $ 1,203,579 |
Fair Value on Non-Recurring Basis | Impaired Loans | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a non-recurring basis | 9,690 | 15,394 |
Fair Value on Non-Recurring Basis | Other Real Estate Owned | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a non-recurring basis | 1,534 | 520 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a non-recurring basis | 19,973 | 31,955 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a non-recurring basis | 302,483 | 299,635 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a non-recurring basis | 921,810 | 871,989 |
Significant Unobservable Inputs (Level 3) | Fair Value on Non-Recurring Basis | Impaired Loans | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a non-recurring basis | 9,690 | 15,394 |
Significant Unobservable Inputs (Level 3) | Fair Value on Non-Recurring Basis | Other Real Estate Owned | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a non-recurring basis | $ 1,534 | $ 520 |
Fair Value Measurements (Quanti
Fair Value Measurements (Quantitative Information About Level Three Fair Value Measurements) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Discounted Appraised Value | Significant Unobservable Inputs (Level 3) | Impaired Loans | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Asset measured at fair value | $ 9,690 | $ 15,394 |
Discounted Appraised Value | Significant Unobservable Inputs (Level 3) | Other Real Estate Owned | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Asset measured at fair value | $ 1,534 | $ 520 |
Selling Cost | Other Real Estate Owned | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Rate, range | 10.00% | |
Selling Cost | Discounted Appraised Value | Significant Unobservable Inputs (Level 3) | Other Real Estate Owned | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Rate, range | 10.00% | |
Selling Cost | Minimum | Discounted Appraised Value | Impaired Loans | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Rate, range | 0.00% | |
Selling Cost | Minimum | Discounted Appraised Value | Significant Unobservable Inputs (Level 3) | Impaired Loans | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Rate, range | 0.00% | |
Selling Cost | Maximum | Discounted Appraised Value | Impaired Loans | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Rate, range | 93.00% | |
Selling Cost | Maximum | Discounted Appraised Value | Significant Unobservable Inputs (Level 3) | Impaired Loans | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Rate, range | 24.00% | |
Selling Cost | Weighted Average | Discounted Appraised Value | Significant Unobservable Inputs (Level 3) | Impaired Loans | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Rate, range | 12.00% | 13.00% |
Selling Cost | Weighted Average | Discounted Appraised Value | Significant Unobservable Inputs (Level 3) | Other Real Estate Owned | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Rate, range | 10.00% | 10.00% |
Discount for Lack of Marketability and Age of Appraisal | Minimum | Discounted Appraised Value | Significant Unobservable Inputs (Level 3) | Impaired Loans | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Rate, range | 0.00% | 0.00% |
Discount for Lack of Marketability and Age of Appraisal | Minimum | Discounted Appraised Value | Significant Unobservable Inputs (Level 3) | Other Real Estate Owned | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Rate, range | 0.00% | 0.00% |
Discount for Lack of Marketability and Age of Appraisal | Maximum | Discounted Appraised Value | Significant Unobservable Inputs (Level 3) | Impaired Loans | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Rate, range | 25.00% | 30.00% |
Discount for Lack of Marketability and Age of Appraisal | Maximum | Discounted Appraised Value | Significant Unobservable Inputs (Level 3) | Other Real Estate Owned | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Rate, range | 47.00% | 36.00% |
Discount for Lack of Marketability and Age of Appraisal | Weighted Average | Discounted Appraised Value | Significant Unobservable Inputs (Level 3) | Impaired Loans | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Rate, range | 8.00% | 4.00% |
Discount for Lack of Marketability and Age of Appraisal | Weighted Average | Discounted Appraised Value | Significant Unobservable Inputs (Level 3) | Other Real Estate Owned | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Rate, range | 12.00% | 5.00% |
Fair Value Measurements (Estima
Fair Value Measurements (Estimated Fair Value and Carrying Value) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |||
Assets: | |||||
Securities available for sale, at fair value | $ 232,925 | $ 230,943 | [1] | ||
Liabilities: | |||||
Remaining unamortized debt issuance costs | 902 | 978 | |||
Portion at Fair Value Measurement [Member] | |||||
Assets: | |||||
Cash and short-term investments | [2] | 6,297 | 13,651 | ||
Interest bearing deposits with banks | 13,676 | 18,304 | |||
Securities available for sale, at fair value | 232,925 | 230,943 | |||
Securities held to maturity, Fair Value | 29,947 | 30,575 | |||
Restricted securities | 9,665 | 8,959 | |||
Loans, net | 921,810 | 871,989 | |||
Bank owned life insurance | 25,577 | 25,099 | |||
Accrued interest receivable | 4,369 | 4,059 | |||
Total | 1,244,266 | 1,203,579 | |||
Liabilities: | |||||
Noninterest-bearing demand deposits | 200,544 | 174,071 | |||
Interest-bearing deposits | 768,574 | 763,315 | |||
Short-term borrowings | [3] | 133,087 | 119,428 | ||
Junior subordinated debt | 11,979 | 9,933 | |||
Senior subordinated debt | 20,906 | [4] | 19,669 | [5] | |
Accrued interest payable | 942 | 590 | |||
Total | 1,136,032 | 1,087,006 | |||
Reported Value Measurement [Member] | |||||
Assets: | |||||
Cash and short-term investments | [2] | 6,297 | 13,651 | ||
Interest bearing deposits with banks | 13,676 | 18,304 | |||
Securities available for sale, at fair value | 232,925 | 230,943 | |||
Securities held to maturity, Fair Value | 28,549 | 29,698 | |||
Restricted securities | 9,665 | 8,959 | |||
Loans, net | 926,157 | 869,451 | |||
Bank owned life insurance | 25,577 | 25,099 | |||
Accrued interest receivable | 4,369 | 4,059 | |||
Total | 1,247,215 | 1,200,164 | |||
Liabilities: | |||||
Noninterest-bearing demand deposits | 200,544 | 174,071 | |||
Interest-bearing deposits | 809,746 | 814,648 | |||
Short-term borrowings | [3] | 133,087 | 119,428 | ||
Junior subordinated debt | 10,310 | 10,310 | |||
Senior subordinated debt | 19,098 | [4] | 19,022 | [5] | |
Accrued interest payable | 942 | 590 | |||
Total | 1,173,727 | 1,138,069 | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Portion at Fair Value Measurement [Member] | |||||
Assets: | |||||
Cash and short-term investments | [2] | 6,297 | 13,651 | ||
Interest bearing deposits with banks | 13,676 | 18,304 | |||
Total | 19,973 | 31,955 | |||
Liabilities: | |||||
Noninterest-bearing demand deposits | 200,544 | 174,071 | |||
Short-term borrowings | [3] | 133,087 | 119,428 | ||
Total | 333,631 | 293,499 | |||
Significant Other Observable Inputs (Level 2) | Portion at Fair Value Measurement [Member] | |||||
Assets: | |||||
Securities available for sale, at fair value | 232,925 | 230,943 | |||
Securities held to maturity, Fair Value | 29,947 | 30,575 | |||
Restricted securities | 9,665 | 8,959 | |||
Bank owned life insurance | 25,577 | 25,099 | |||
Accrued interest receivable | 4,369 | 4,059 | |||
Total | 302,483 | 299,635 | |||
Liabilities: | |||||
Interest-bearing deposits | 768,574 | 763,315 | |||
Junior subordinated debt | 11,979 | 9,933 | |||
Senior subordinated debt | 20,906 | [4] | 19,669 | [5] | |
Accrued interest payable | 942 | 590 | |||
Total | 802,401 | 793,507 | |||
Significant Unobservable Inputs (Level 3) | Portion at Fair Value Measurement [Member] | |||||
Assets: | |||||
Loans, net | 921,810 | 871,989 | |||
Total | $ 921,810 | $ 871,989 | |||
[1] | Derived from audited consolidated financial statements. | ||||
[2] | Includes federal funds sold. | ||||
[3] | Includes federal funds purchased and repurchase agreements. | ||||
[4] | Net of unamortized debt issuance costs of $902. | ||||
[5] | Net of unamortized debt issuance costs of $978. |
Preferred Stock and Warrant (Na
Preferred Stock and Warrant (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 15, 2015 | May 13, 2015 | Jan. 09, 2014 | Jun. 12, 2013 | Jan. 09, 2009 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Oct. 21, 2013 |
Preferred Securities And Warrants [Line Items] | |||||||||
Warrant to purchase up to shares | 373,832 | 384,041.19 | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 9.63 | $ 9.374 | |||||||
Preferred Stock Par Or Stated Value Per Share | $ 2 | $ 2 | |||||||
Payments for Repurchase of Warrants | $ 115 | $ 115 | |||||||
Payments for Repurchase of Preferred Stock and Preference Stock | $ 14,000 | ||||||||
Series A Preferred Stock [Member] | |||||||||
Preferred Securities And Warrants [Line Items] | |||||||||
Preferred stock, shares issued | 24,000 | ||||||||
Preferred Stock, Liquidation Preference Per Share | $ 1,000 | ||||||||
Cumulative dividend payment condition | The Series A Preferred Stock paid a cumulative dividend at a rate of 5% for the first five years, and effective January 9, 2014, paid a rate of 9%. | ||||||||
Preferred stock, dividend rate, percentage | 9.00% | 5.00% | |||||||
Proceeds from issuance of preferred stock | $ 24,000 | ||||||||
Payments for Repurchase of Preferred Stock and Preference Stock | $ 9,000 | ||||||||
Series B Non-Voting Mandatorily Convertible Non-Cumulative Preferred | |||||||||
Preferred Securities And Warrants [Line Items] | |||||||||
Preferred stock, shares issued | 5,240,192 | 5,240,192 | 5,240,192 | ||||||
Preferred Stock Shares Outstanding | 5,240,192 | 5,240,192 | |||||||
Proceeds from issuance of preferred stock | $ 23,800 | ||||||||
Preferred stock issued per share price | $ 4.55 |
Junior and Senior Subordinate78
Junior and Senior Subordinated Debt (Narrative) (Details) - USD ($) $ in Thousands | Apr. 22, 2015 | Sep. 17, 2003 | Sep. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||||
Remaining unamortized debt issuance costs | $ 902 | $ 978 | ||
Subsidiary Issuer [Member] | ||||
Debt Instrument [Line Items] | ||||
Subsidiary's capital | $ 650,000 | |||
Junior Subordinated Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Investment into subsidiary | $ 10,000 | |||
Variable rate per annum | 2.95% | |||
Trust preferred securities, effective interest rate | 3.81% | 3.48% | ||
Subordinated debt, maturity date | Sep. 17, 2033 | |||
Senior Subordinated Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Subordinated debt, maturity date | Apr. 22, 2025 | |||
Proceeds from sale of Senior Notes | $ 20,000 | |||
Senior notes, stated interest rate | 6.50% | |||
Redemption price percentage | 100.00% | |||
Remaining unamortized debt issuance costs | $ 902 | |||
Senior Subordinated Notes [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Variable rate per annum | 5.02% |
Capital Requirements (Actual Ca
Capital Requirements (Actual Capital Amounts and Ratios) (Details) | 9 Months Ended | ||
Sep. 30, 2016 | Dec. 31, 2015 | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
CET1 to risk weighted assets, actual ratio | 9.4797% | 9.80% | |
CET1 capital to risk weighted assets, minimum capital requirements ratio | 5.125% | [1] | 4.50% |
Tier 1 capital to risk weighted assets, actual ratio | 12.4005% | 12.66% | |
Tier 1 capital to risk weighted assets, minimum capital requirements ratio | 6.625% | [1] | 6.00% |
Total capital to risk weighted assets, actual ratio | 15.5552% | 16.17% | |
Total capital to risk weighted assets, minimum capital requirements ratio | 8.625% | [1] | 8.00% |
Tier 1 capital to average assets, actual ratio | 9.4119% | 9.20% | |
Tier 1 capital to average assets, minimum capital requirements ratio | 4.00% | [1] | 4.00% |
Capital conservation buffer, percentage | 4.9797% | ||
Bank [Member] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
CET1 to risk weighted assets, actual ratio | 13.0421% | 13.02% | |
CET1 capital to risk weighted assets, minimum capital requirements ratio | 5.125% | [1] | 4.50% |
CET1 capital to risk weighted assets, minimum to be well capitalized under prompt corrective action provision ratio | 6.50% | 6.50% | |
Tier 1 capital to risk weighted assets, actual ratio | 13.0421% | 13.02% | |
Tier 1 capital to risk weighted assets, minimum capital requirements ratio | 6.625% | [1] | 6.00% |
Tier 1 capital to risk weighted assets, minimum to be well capitalized under prompt corrective action provision ratio | 8.00% | 8.00% | |
Total capital to risk weighted assets, actual ratio | 14.1235% | 14.27% | |
Total capital to risk weighted assets, minimum capital requirements ratio | 8.625% | [1] | 8.00% |
Total capital to risk weighted assets, minimum to be well capitalized under prompt corrective action provision ratio | 10.00% | 10.00% | |
Tier 1 capital to average assets, actual ratio | 9.9042% | 9.46% | |
Tier 1 capital to average assets, minimum capital requirements ratio | 4.00% | [1] | 4.00% |
Tier 1 capital to average assets, minimum to be well capitalized under prompt corrective action provision ratio | 5.00% | 5.00% | |
Capital conservation buffer, percentage | 6.1235% | ||
[1] | Except with regard to the Company's and the Bank's Tier 1 capital to average assets ratio, includes the current phased-in portion of the Basel III Capital Rules capital conservation buffer (0.625%) which is added to the minimum capital requirements for capital adequacy purposes. The capital conservation buffer is being phased in through four equal annual installments of 0.625% from 2015 to 2019, with full implementation in January 2019 (2.5%). The Company's and the Bank's capital conservation buffer must consist of additional CET1 above regulatory minimum requirements. Failure to maintain the prescribed levels places limitations on capital distributions and discretionary bonuses to executives. As of September 30, 2016, the capital conservation buffer of the Company and the Bank was 4.9797% and 6.1235%, respectively. |
Low Income Housing Tax Credits
Low Income Housing Tax Credits (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | ||
Tax credits and other tax benefits recognized related to | $ 353 | $ 368 | $ 353 | $ 368 | ||
Total projected tax credits to be received | 318 | 318 | ||||
Other Liabilities | 6,524 | 6,524 | $ 6,040 | [1] | ||
Investments [Member] | ||||||
Other Liabilities | 1,000 | 1,000 | 1,000 | |||
Other Assets [Member] | ||||||
Investments in equity funds | $ 2,400 | $ 2,400 | $ 2,800 | |||
[1] | Derived from audited consolidated financial statements. |
Accumulated Other Comprehensi81
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | $ (3,886) | [1] | $ (4,066) | ||
Other comprehensive income (loss) before reclassification and amortization | 3,244 | 707 | |||
Reclassification adjustment for gains included in net income | $ (178) | $ (53) | (335) | (87) | |
Net amortization of unrealized losses on securities transferred from available for sale to held to maturity | 57 | 104 | |||
Net current period other comprehensive income | 109 | 1,291 | 2,966 | 724 | |
Ending Balance | (920) | (3,342) | (920) | (3,342) | |
Unrealized Securities Gains (Losses) | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | (1,726) | (1,476) | |||
Other comprehensive income (loss) before reclassification and amortization | 3,244 | 707 | |||
Reclassification adjustment for gains included in net income | (335) | (87) | |||
Net current period other comprehensive income | 2,909 | 620 | |||
Ending Balance | 1,183 | (856) | 1,183 | (856) | |
Unrealized (Losses) on Available for Sale Securities Transferred to Held to Maturity [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | (356) | (478) | |||
Net amortization of unrealized losses on securities transferred from available for sale to held to maturity | 57 | 104 | |||
Net current period other comprehensive income | 57 | 104 | |||
Ending Balance | (299) | (374) | (299) | (374) | |
Adjustments Related to Pension Plan [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance | (1,804) | (2,112) | |||
Ending Balance | $ (1,804) | $ (2,112) | $ (1,804) | $ (2,112) | |
[1] | Derived from audited consolidated financial statements. |
Accumulated Other Comprehensi82
Accumulated Other Comprehensive Loss (Gains on the sale securities and amortization of unrealized losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Investment Securities [Abstract] | ||||
Gains on sale of available for sale securities | $ 270 | $ 81 | $ 507 | $ 132 |
Less: tax effect | (92) | (28) | (172) | (45) |
Net gains on the sale of available for sale securities | 178 | 53 | 335 | 87 |
Amortization of unrealized losses on securities transferred from available for sale to held to maturity | (29) | (60) | (86) | (157) |
Less: tax effect | 10 | 20 | 29 | 53 |
Net amortization of unrealized losses on securities transferred from available for sale to held to maturity | $ (19) | $ (40) | $ (57) | $ (104) |