Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 27, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | SOUTHERN FIRST BANCSHARES INC | |
Entity Central Index Key | 1,090,009 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 6,243,132 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Cash and cash equivalents: | ||
Cash and due from banks | $ 11,311 | $ 9,862 |
Federal funds sold | 34,817 | 25,849 |
Interest-bearing deposits with banks | 4,209 | 5,553 |
Total cash and cash equivalents | 50,337 | 41,264 |
Investment securities: | ||
Investment securities available for sale | 66,346 | 55,024 |
Other investments | 5,532 | 6,522 |
Total investment securities | 71,878 | 61,546 |
Loans held for sale | 10,887 | 11,765 |
Loans | 993,233 | 871,446 |
Less allowance for loan losses | (13,368) | (11,752) |
Loans, net | 979,865 | 859,694 |
Bank owned life insurance | 24,548 | 22,050 |
Property and equipment, net | 23,461 | 20,845 |
Deferred income taxes | 6,080 | 5,509 |
Other assets | 6,501 | 7,192 |
Total assets | 1,173,557 | 1,029,865 |
LIABILITIES | ||
Deposits | 943,918 | 788,907 |
Federal Home Loan Bank advances and other borrowings | 115,200 | 135,200 |
Junior subordinated debentures | 13,403 | 13,403 |
Other liabilities | 9,986 | 9,363 |
Total liabilities | $ 1,082,507 | $ 946,873 |
SHAREHOLDERS' EQUITY | ||
Preferred stock, par value $.01 per share, 10,000,000 shares authorized, no shares issued and outstanding | ||
Common stock, par value $.01 per share, 10,000,000 shares authorized, 6,243,132 and 6,219,002 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively | $ 62 | $ 62 |
Nonvested restricted stock | (350) | (494) |
Additional paid-in capital | 69,400 | 68,785 |
Accumulated other comprehensive income | 286 | 302 |
Retained earnings | 21,652 | 14,337 |
Total shareholders' equity | 91,050 | 82,992 |
Total liabilities and shareholders' equity | $ 1,173,557 | $ 1,029,865 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Balance Sheets [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 6,243,132 | 6,219,002 |
Common stock, shares outstanding | 6,243,132 | 6,219,002 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Interest income | ||||
Loans | $ 11,362 | $ 9,829 | $ 32,703 | $ 27,956 |
Investment securities | 371 | 400 | 1,102 | 1,378 |
Federal funds sold | 33 | 24 | 79 | 54 |
Total interest income | 11,766 | 10,253 | 33,884 | 29,388 |
Interest expense | ||||
Deposits | 941 | 718 | 2,563 | 2,094 |
Borrowings | 987 | 1,044 | 2,922 | 3,088 |
Total interest expense | 1,928 | 1,762 | 5,485 | 5,182 |
Net interest income | 9,838 | 8,491 | 28,399 | 24,206 |
Provision for loan losses | 875 | 1,325 | 2,500 | 3,275 |
Net interest income after provision for loan losses | 8,963 | 7,166 | 25,899 | 20,931 |
Noninterest income | ||||
Loan and mortgage fee income | 1,426 | 861 | 4,031 | 1,816 |
Service fees on deposit accounts | 230 | 244 | 676 | 689 |
Income from bank owned life insurance | 167 | $ 169 | 498 | 498 |
Gain on sale of investment securities | 2 | 297 | 230 | |
Other income | 299 | $ 286 | 878 | 815 |
Total noninterest income | 2,124 | 1,560 | 6,380 | 4,048 |
Noninterest expenses | ||||
Compensation and benefits | 4,313 | 3,459 | 12,695 | 10,384 |
Occupancy | 845 | 777 | 2,424 | 2,235 |
Real estate owned expenses | 148 | 71 | 1,003 | 96 |
Data processing and related costs | 588 | 625 | 1,747 | 1,841 |
Insurance | 215 | 209 | 630 | 604 |
Professional fees | 180 | 193 | 646 | 591 |
Marketing | 217 | 207 | 677 | 724 |
Other | 365 | 525 | 1,155 | 1,676 |
Total noninterest expenses | 6,871 | 6,066 | 20,977 | 18,151 |
Income before income tax expense | 4,216 | 2,660 | 11,302 | 6,828 |
Income tax expense | 1,489 | 834 | 3,987 | 2,185 |
Net income | $ 2,727 | 1,826 | $ 7,315 | 4,643 |
Preferred stock dividend | 253 | 699 | ||
Net income available to common shareholders | $ 2,727 | $ 1,573 | $ 7,315 | $ 3,944 |
Earnings per common share | ||||
Basic | $ 0.44 | $ 0.33 | $ 1.17 | $ 0.83 |
Diluted | $ 0.41 | $ 0.31 | $ 1.12 | $ 0.79 |
Weighted average common shares outstanding | ||||
Basic | 6,238,465 | 4,829,514 | 6,232,536 | 4,775,791 |
Diluted | 6,579,448 | 5,046,487 | 6,542,896 | 4,984,553 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statements of Comprehensive Income (Loss) [Abstract] | ||||
Net income | $ 2,727 | $ 1,826 | $ 7,315 | $ 4,643 |
Unrealized gain (loss) on securities available for sale: | ||||
Unrealized holding gain (loss) arising during the period, pretax | 604 | (25) | 272 | 2,234 |
Tax (expense) benefit | (205) | $ 8 | (92) | (760) |
Reclassification of realized gain | (2) | (297) | (230) | |
Tax expense | 1 | 101 | 78 | |
Other comprehensive income (loss) | 398 | $ (17) | (16) | 1,322 |
Comprehensive income | $ 3,125 | $ 1,809 | $ 7,299 | $ 5,965 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common stock | Preferred stock | Nonvested restricted stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Retained earnings |
Beginning balance at Dec. 31, 2013 | $ 65,665 | $ 43 | $ 15,299 | $ (636) | $ 43,585 | $ (1,348) | $ 8,722 |
Beginning balance, shares at Dec. 31, 2013 | 4,319,750 | 15,299 | |||||
Net income | 4,643 | $ 4,643 | |||||
Redemption of preferred stock | (4,057) | $ (4,057) | |||||
Redemption of preferred stock, shares | (4,057) | ||||||
Cash dividends on Series T preferred stock | (687) | $ (687) | |||||
Issuance of common stock | 5,950 | $ 5 | $ 5,945 | ||||
Issuance of common stock, shares | 475,000 | ||||||
Proceeds from exercise of stock options | $ 287 | 287 | |||||
Proceeds from exercise of stock options, shares | 32,764 | ||||||
Issuance of restricted stock | $ (27) | $ 27 | |||||
Issuance of restricted stock, shares | 2,000 | ||||||
Amortization of deferred compensation on restricted stock | $ 147 | $ 147 | |||||
Compensation expense related to stock options, net of tax | 322 | $ 322 | |||||
Other comprehensive income | 1,322 | $ 1,322 | |||||
Balance at Sep. 30, 2014 | 73,592 | $ 48 | $ 11,242 | $ (516) | $ 50,166 | (26) | $ 12,678 |
Balance, shares at Sep. 30, 2014 | 4,829,514 | 11,242 | |||||
Beginning balance at Dec. 31, 2014 | 82,992 | $ 62 | $ (494) | $ 68,785 | $ 302 | 14,337 | |
Beginning balance, shares at Dec. 31, 2014 | 6,219,002 | ||||||
Net income | 7,315 | $ 7,315 | |||||
Proceeds from exercise of stock options | 189 | $ 189 | |||||
Proceeds from exercise of stock options, shares | 24,130 | ||||||
Amortization of deferred compensation on restricted stock | 144 | $ 144 | |||||
Compensation expense related to stock options, net of tax | 426 | $ 426 | |||||
Other comprehensive income | (16) | $ (16) | |||||
Balance at Sep. 30, 2015 | $ 91,050 | $ 62 | $ (350) | $ 69,400 | $ 286 | $ 21,652 | |
Balance, shares at Sep. 30, 2015 | 6,243,132 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Operating activities | ||
Net income | $ 7,315 | $ 4,643 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Provision for loan losses | 2,500 | 3,275 |
Depreciation and other amortization | 990 | 901 |
Accretion and amortization of securities discounts and premium, net | 237 | 291 |
Gain loss on sale of investment securities available for sale | (297) | (230) |
(Gain) loss on sale of real estate owned | (66) | 13 |
Write-down of real estate owned | 787 | 20 |
Compensation expense related to stock options and grants | 570 | 469 |
Gain on sale of loans held for sale | (3,816) | (1,700) |
Loans originated and held for sale | (162,352) | (71,733) |
Proceeds from sale of loans held for sale | 167,046 | 67,672 |
Increase in cash surrender value of bank owned life insurance | (498) | (498) |
Increase in deferred tax asset | (562) | (954) |
Decrease in other assets, net | 41 | 8 |
Decrease in other liabilities | 623 | 854 |
Net cash provided by operating activities | 12,518 | 3,031 |
Increase (decrease) in cash realized from: | ||
Origination of loans, net | (123,014) | (103,836) |
Purchase of property and equipment | (3,606) | (2,111) |
Purchase of investment securities: | ||
Available for sale | (25,096) | (2,073) |
Other | (149) | (900) |
Payments and maturity of investment securities: | ||
Available for sale | 3,446 | 3,609 |
Other | 1,140 | $ 494 |
Purchase of bank owned life insurance | (2,000) | |
Proceeds from sale of investment securities available for sale | 10,362 | $ 10,977 |
Proceeds from sale of real estate owned | 272 | 203 |
Net cash used for investing activities | (138,645) | (93,637) |
Increase (decrease) in cash realized from: | ||
Increase in deposits, net | $ 155,011 | 92,441 |
Increase in other borrowings | $ 15,500 | |
Decrease in Federal Home Loan Bank advances and other borrowings | $ (20,000) | |
Cash dividend on preferred stock | $ (687) | |
Redemption of preferred stock | (4,057) | |
Issuance of common stock | 5,950 | |
Proceeds from the exercise of stock options and warrants | $ 189 | 287 |
Net cash provided by financing activities | 135,200 | 109,434 |
Net increase in cash and cash equivalents | 9,073 | 18,828 |
Cash and cash equivalents at beginning of the period | 41,264 | 39,203 |
Cash and cash equivalents at end of the period | 50,337 | 58,031 |
Cash paid for | ||
Interest | 5,451 | 4,946 |
Income taxes | 4,550 | 3,140 |
Schedule of non-cash transactions | ||
Real estate acquired in settlement of loans | 343 | 2,587 |
Unrealized gain on securities, net of income taxes | $ 180 | $ 1,474 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Nature of Business and Basis of Presentation [Abstract] | |
Nature of Business and Basis of Presentation | NOTE 1 – Nature of Business and Basis of Presentation Business Activity Southern First Bancshares, Inc. (the "Company") is a South Carolina corporation that owns all of the capital stock of Southern First Bank (the "Bank") and all of the stock of Greenville First Statutory Trust I and II (collectively, the "Trusts"). The Trusts are special purpose non-consolidated entities organized for the sole purpose of issuing trust preferred securities. The Bank's primary federal regulator is the Federal Deposit Insurance Corporation (the "FDIC"). The Bank is also regulated and examined by the South Carolina Board of Financial Institutions. The Bank is primarily engaged in the business of accepting demand deposits and savings deposits insured by the FDIC, and providing commercial, consumer and mortgage loans to the general public. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine month periods ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 as filed with the Securities and Exchange Commission on March 3, 2015. The consolidated financial statements include the accounts of the Company and the Bank. In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, “Consolidation,” the financial statements related to the Trusts have not been consolidated. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amount of income and expenses during the reporting periods. 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, real estate acquired in the settlement of loans, fair value of financial instruments, evaluating other-than-temporary-impairment of investment securities and valuation of deferred tax assets. Reclassifications Certain amounts, previously reported, have been reclassified to state all periods on a comparable basis and had no effect on shareholders’ equity or net income. Subsequent Events Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non-recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. Management performed an evaluation to determine whether there have been any subsequent events since the balance sheet date and determined that no subsequent events occurred requiring accrual or disclosure. |
Preferred and Common Stock
Preferred and Common Stock | 9 Months Ended |
Sep. 30, 2015 | |
Preferred and Common Stock [Abstract] | |
Preferred and Common Stock | NOTE 2 – Preferred and Common Stock On November 12, 2014, the Company issued 1,380,000 shares of its common stock in a public offering at $14.40 per share, including 180,000 shares which were sold to the underwriter pursuant to an option to purchase additional shares to cover any over-allotments. The net proceeds from the offering totaled approximately $18.4 million, after deducting the underwriting discount as well as estimated offering expenses. Using proceeds from the public offering, on December 12, 2014, the Company completed the repurchase of the remaining 11,242 shares of Series T preferred stock outstanding at $1,000 par value from third party investors who purchased the shares in July 2012 through a Dutch auction conducted by the U.S. Treasury. As of December 31, 2014, the Company has no shares of preferred stock outstanding. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2015 | |
Investment Securities [Abstract] | |
Investment Securities | NOTE 3 – Investment Securities The amortized costs and fair value of investment securities are as follows: September 30, 2015 Amortized Gross Unrealized Fair (dollars in thousands) Cost Gains Losses Value Available for sale US government agencies $ 12,146 30 72 12,104 SBA securities 5,071 - 88 4,983 State and political subdivisions 19,097 416 51 19,462 Mortgage-backed securities 29,599 280 82 29,797 Total investment securities available for sale $ 65,913 726 293 66,346 December 31, 2014 Amortized Gross Unrealized Fair Cost Gains Losses Value Available for sale US government agencies $ 8,763 9 215 8,557 SBA securities 5,336 - 182 5,154 State and political subdivisions 16,253 598 51 16,800 Mortgage-backed securities 24,214 341 42 24,513 Total investment securities available for sale $ 54,566 948 490 55,024 During the first quarter of 2015, the Company sold $5.8 million of its mortgage-backed securities and state and municipal obligations and recorded a net gain on sale of investment securities of $259,000. During the second quarter of 2015, the Company sold and subsequently reinvested $4.3 million of investment securities, recording a gain of $36,000 from the transaction. Contractual maturities and yields on the Company’s investment securities at September 30, 2015 and December 31, 2014 are shown in the following table. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. September 30, 2015 Less than one year One to five years Five to ten years Over ten years Total (dollars in thousands) Amount Yield Amount Yield Amount Yield Amount Yield Amount Yield Available for sale US government agencies $ - - 2,008 1.77 % 2,373 2.13 % 7,723 2.42 % 12,104 2.26 % SBA securities - - - - - - 4,983 1.88 % 4,983 1.88 % State and political subdivisions 1,763 0.65 % 969 2.78 % 8,822 2.91 % 7,908 2.89 % 19,462 2.69 % Mortgage-backed securities - - - - 3,506 1.58 % 26,291 2.11 % 29,797 2.05 % Total $ 1,763 0.65 % 2,977 2.10 % 14,701 2.46 % 46,905 2.26 % 66,346 2.26 % December 31, 2014 Less than one year One to five years Five to ten years Over ten years Total Amount Yield Amount Yield Amount Yield Amount Yield Amount Yield Available for sale US government agencies $ - - 988 2.12 % - - 7,569 2.43 % 8,557 2.39 % SBA securities - - - - - - 5,154 1.88 % 5,154 1.88 % State and political subdivisions 2,082 0.68 % 399 3.14 % 8,465 3.23 % 5,854 3.00 % 16,800 2.82 % Mortgage-backed securities - - - - 2,118 1.66 % 22,395 2.62 % 24,513 2.54 % Total $ 2,082 0.68 % 1,387 2.41 % 10,583 2.91 % 40,972 2.54 % 55,024 2.54 % The tables below summarize gross unrealized losses on investment securities and the fair market value of the related securities at September 30, 2015 and December 31, 2014, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position. September 30, 2015 Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) # value losses # value losses # value losses Available for sale US government agencies 2 $ 5,061 $ 72 - $ - $ - 2 $ 5,061 $ 72 SBA securities - - - 2 4,983 88 2 4,983 88 State and political subdivisions 6 2,489 18 4 2,244 33 10 4,733 51 Mortgage-backed securities 7 11,520 82 - - - 7 11,520 82 Total 15 $ 19,070 $ 172 6 $ 7,227 $ 121 21 $ 26,297 $ 293 December 31, 2014 Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized # value losses # value losses # value losses Available for sale US government agencies - $ - $ - 2 $ 7,569 $ 215 2 $ 7,569 $ 215 SBA securities - - - 2 5,154 182 2 5,154 182 State and political subdivisions - - - 7 3,488 51 7 3,488 51 Mortgage-backed securities 3 4,407 11 2 4,756 31 5 9,163 42 Total 3 $ 4,407 $ 11 13 $ 20,967 $ 479 16 $ 25,374 $ 490 At September 30, 2015, the Company had 15 individual investments with a fair market value of $19.1 million that were in an unrealized loss position for less than 12 months and six individual investments with a fair market value of $7.2 million that were in an unrealized loss position for 12 months or longer. The unrealized losses were primarily attributable to changes in interest rates, rather than deterioration in credit quality. The individual securities are each investment grade securities. The Company considers the length of time and extent to which the fair value of available-for-sale debt securities have been less than cost to conclude that such securities are not other-than-temporarily impaired. The Company also considers other factors such as the financial condition of the issuer including credit ratings and specific events affecting the operations of the issuer, volatility of the security, underlying assets that collateralize the debt security, and other industry and macroeconomic conditions. As the Company has no intent to sell securities with unrealized losses and it is not more-likely-than-not that the Company will be required to sell these securities before recovery of amortized cost, the Company has concluded that these securities are not impaired on an other-than-temporary basis. Other investments are comprised of the following and are recorded at cost which approximates fair value. (dollars in thousands) September 30, 2015 December 31, 2014 Federal Home Loan Bank stock $ 5,005 6,020 Investment in Trust Preferred securities 403 403 Other investments 124 99 Total other investments $ 5,532 6,522 The Company has evaluated the Federal Home Loan Bank (“FHLB”) stock for impairment and determined that the investment in the FHLB stock is not other than temporarily impaired as of September 30, 2015 and ultimate recoverability of the par value of this investment is probable. All of the FHLB stock is used to collateralize advances with the FHLB. At September 30, 2015, $21.0 million of securities were pledged as collateral for repurchase agreements from brokers, and approximately $11.2 million of securities were pledged to secure client deposits. At December 31, 2014, $21.8 million of securities were pledged as collateral for repurchase agreements from brokers, and approximately $12.9 million of securities were pledged to secure client deposits. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2015 | |
Loans and Allowance for Loan Losses [Abstract] | |
Loans and Allowance for Loan Losses | NOTE 4 – Loans and Allowance for Loan Losses The following table summarizes the composition of our loan portfolio. Total gross loans are recorded net of deferred loan fees and costs, which totaled $1.8 million as of September 30, 2015 and December 31, 2014. September 30, 2015 December 31, 2014 (dollars in thousands) Amount % of Total Amount % of Total Commercial Owner occupied RE $ 237,997 24.0 % $ 191,061 21.9 % Non-owner occupied RE 212,777 21.4 % 183,440 21.1 % Construction 32,985 3.3 % 50,995 5.8 % Business 170,049 17.1 % 149,986 17.2 % Total commercial loans 653,808 65.8 % 575,482 66.0 % Consumer Real estate 168,838 17.0 % 146,859 16.9 % Home equity 111,794 11.3 % 95,629 11.0 % Construction 43,555 4.4 % 39,226 4.5 % Other 15,238 1.5 % 14,250 1.6 % Total consumer loans 339,425 34.2 % 295,964 34.0 % Total gross loans, net of deferred fees 993,233 100.0 % 871,446 100.0 % Less—allowance for loan losses (13,368 ) (11,752 ) Total loans, net $ 979,865 $ 859,694 Maturities and Sensitivity of Loans to Changes in Interest Rates The information in the following tables summarizes the loan maturity distribution by type and related interest rate characteristics based on the contractual maturities of individual loans, including loans which may be subject to renewal at their contractual maturity. Renewal of such loans is subject to review and credit approval, as well as modification of terms upon maturity. Actual repayments of loans may differ from the maturities reflected below, because borrowers have the right to prepay obligations with or without prepayment penalties. September 30, 2015 After one One year but within After five (dollars in thousands) or less five years years Total Commercial Owner occupied RE $ 18,701 146,061 73,235 237,997 Non-owner occupied RE 39,960 130,607 42,210 212,777 Construction 13,882 16,258 2,845 32,985 Business 70,478 87,226 12,345 170,049 Total commercial loans 143,021 380,152 130,635 653,808 Consumer Real estate 28,269 47,668 92,901 168,838 Home equity 4,842 32,466 74,486 111,794 Construction 17,661 2,835 23,059 43,555 Other 7,590 6,065 1,583 15,238 Total consumer loans 58,362 89,034 192,029 339,425 Total gross loans, net of deferred fees $ 201,383 469,186 322,664 993,233 Loans maturing after one year with: Fixed interest rates $ 590,605 Floating interest rates 201,247 December 31, 2014 After one One year but within After five or less five years years Total Commercial Owner occupied RE $ 20,737 98,110 72,214 191,061 Non-owner occupied RE 46,718 104,402 32,320 183,440 Construction 11,923 25,145 13,927 50,995 Business 75,718 65,899 8,369 149,986 Total commercial loans 155,096 293,556 126,830 575,482 Consumer Real estate 21,571 41,549 83,739 146,859 Home equity 5,645 28,394 61,590 95,629 Construction 13,531 2,073 23,622 39,226 Other 7,278 5,637 1,335 14,250 Total consumer 48,025 77,653 170,286 295,964 Total gross loan, net of deferred fees $ 203,121 371,209 297,116 871,446 Loans maturing after one year with: Fixed interest rates $ 494,058 Floating interest rates 174,267 Portfolio Segment Methodology Commercial Commercial loans are assessed for estimated losses by grading each loan using various risk factors identified through periodic reviews. The Company applies historic grade-specific loss factors to each loan class. In the development of statistically derived loan grade loss factors, the Company observes historical losses over 20 quarters for each loan grade. These loss estimates are adjusted as appropriate based on additional analysis of external loss data or other risks identified from current economic conditions and credit quality trends. The allowance also includes an amount for the estimated impairment on nonaccrual commercial loans and commercial loans modified in a troubled debt restructuring (“TDR”), whether on accrual or nonaccrual status. Consumer For consumer loans, the Company determines the allowance on a collective basis utilizing historical losses over 20 quarters to represent its best estimate of inherent loss. The Company pools loans, generally by loan class with similar risk characteristics. The allowance also includes an amount for the estimated impairment on nonaccrual consumer loans and consumer loans modified in a TDR, whether on accrual or nonaccrual status. During the third quarter of 2015, the Company began using 20 quarters to measure historical losses rather than a 12 quarter period as used in the past. The Company believes that the longer period used to determine historical losses for both its commercial and consumer loans captures a longer economic cycle, including periods of economic uncertainty which are unlike those the Company has experienced in the past three years. The Company also believes that using 20 quarters to measure historical losses is more indicative of the losses and risks inherent in the portfolio. Credit Quality Indicators Commercial The Company manages a consistent process for assessing commercial loan credit quality by monitoring its loan grading trends and past due statistics. All loans are subject to individual risk assessment. The Company’s risk categories include Pass, Special Mention, Substandard, and Doubtful, each of which is defined by banking regulatory agencies. Delinquency statistics are also an important indicator of credit quality in the establishment of the Company’s allowance for credit losses. The Company categorizes its loans into risk categories based on relevant information about the ability of the borrower to service their debt such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. A description of the general characteristics of the risk grades is as follows: ● Pass—These loans range from minimal credit risk to average however still acceptable credit risk. ● Special mention—A special mention loan has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or the institution’s credit position at some future date. ● Substandard—A substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness, or weaknesses, that may jeopardize the liquidation of the debt. A substandard loan is characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. ● Doubtful—A doubtful loan has all of the weaknesses inherent in one classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of the currently existing facts, conditions and values, highly questionable and improbable. The tables below provide a breakdown of outstanding commercial loans by risk category. September 30, 2015 Owner Non-owner (dollars in thousands) occupied RE occupied RE Construction Business Total Pass $ 232,326 203,061 31,143 161,171 627,701 Special mention 3,903 3,325 - 4,846 12,074 Substandard 1,768 6,391 1,842 4,032 14,033 Doubtful - - - - - $ 237,997 212,777 32,985 170,049 653,808 December 31, 2014 Owner Non-owner occupied RE occupied RE Construction Business Total Pass $ 184,158 173,711 48,140 140,432 546,441 Special mention 5,035 3,376 129 4,715 13,255 Substandard 1,868 6,353 2,726 4,839 15,786 Doubtful - - - - - $ 191,061 183,440 50,995 149,986 575,482 The following tables provide past due information for outstanding commercial loans and include loans on nonaccrual status as well as accruing TDRs. September 30, 2015 Owner Non-owner (dollars in thousands) occupied RE occupied RE Construction Business Total Current $ 237,687 209,180 32,538 168,722 648,127 30-59 days past due - 449 - 328 777 60-89 days past due 54 - - - 54 Greater than 90 Days 256 3,148 447 999 4,850 $ 237,997 212,777 32,985 170,049 653,808 December 31, 2014 Owner Non-owner occupied RE occupied RE Construction Business Total Current $ 190,801 180,577 50,212 148,317 569,907 30-59 days past due - 49 - 35 84 60-89 days past due - 246 - 155 401 Greater than 90 Days 260 2,568 783 1,479 5,090 $ 191,061 183,440 50,995 149,986 575,482 As of September 30, 2015 and December 31, 2014, loans 30 days or more past due represented 0.66% and 0.73% of the Company’s total loan portfolio, respectively. Commercial loans 30 days or more past due were 0.57% and 0.64% of the Company’s total loan portfolio as of September 30, 2015 and December 31, 2014, respectively. Consumer The Company manages a consistent process for assessing consumer loan credit quality by monitoring its loan grading trends and past due statistics. All loans are subject to individual risk assessment. The Company’s categories include Pass, Special Mention, Substandard, and Doubtful, which are defined above. Delinquency statistics are also an important indicator of credit quality in the establishment of the allowance for loan losses. The tables below provide a breakdown of outstanding consumer loans by risk category. September 30, 2015 (dollars in thousands) Real estate Home equity Construction Other Total Pass $ 166,613 107,764 42,552 15,086 332,015 Special mention 649 2,856 - 121 3,626 Substandard 1,576 1,174 1,003 31 3,784 Doubtful - - - - - $ 168,838 111,794 43,555 15,238 339,425 December 31, 2014 Real estate Home equity Construction Other Total Pass $ 144,070 91,084 39,226 14,013 288,393 Special mention 953 3,268 - 139 4,360 Substandard 1,836 1,277 - 98 3,211 Doubtful - - - - - $ 146,859 95,629 39,226 14,250 295,964 The following tables provide past due information for outstanding consumer loans and include loans on nonaccrual status as well as accruing TDRs. September 30, 2015 (dollars in thousands) Real estate Home equity Construction Other Total Current $ 168,594 111,154 43,555 15,231 338,534 30-59 days past due 244 390 - - 634 60-89 days past due - - - 6 6 Greater than 90 Days - 250 - 1 251 $ 168,838 111,794 43,555 15,238 339,425 December 31, 2014 Real estate Home equity Construction Other Total Current $ 146,362 95,311 39,226 14,247 295,146 30-59 days past due 40 - - - 40 60-89 days past due - 130 - 3 133 Greater than 90 Days 457 188 - - 645 $ 146,859 95,629 39,226 14,250 295,964 As of September 30, 2015 and December 31, 2014, consumer loans 30 days or more past due were 0.09% of total loans. Nonperforming assets The following table shows the nonperforming assets and the related percentage of nonperforming assets to total assets and gross loans. Generally, a loan is placed on nonaccrual status when it becomes 90 days past due as to principal or interest, or when the Company believes, after considering economic and business conditions and collection efforts, that the borrower’s financial condition is such that collection of the contractual principal or interest on the loan is doubtful. A payment of interest on a loan that is classified as nonaccrual is recognized as a reduction in principal when received. (dollars in thousands) September 30, 2015 December 31, 2014 Commercial Owner occupied RE $ 718 322 Non-owner occupied RE 4,434 2,344 Construction - 783 Business 895 1,408 Consumer Real estate - 457 Home equity 250 188 Construction - - Other 1 1 Nonaccruing troubled debt restructurings 887 1,147 Total nonaccrual loans, including nonaccruing TDRs 7,185 6,650 Other real estate owned 2,657 3,307 Total nonperforming assets $ 9,842 9,957 Nonperforming assets as a percentage of: Total assets 0.84 % 0.97 % Gross loans 0.99 % 1.14 % Total loans over 90 days past due 5,101 5,735 Loans over 90 days past due and still accruing - - Accruing troubled debt restructurings $ 7,232 8,562 Impaired Loans The table below summarizes key information for impaired loans. The Company’s impaired loans include loans on nonaccrual status and loans modified in a TDR, whether on accrual or nonaccrual status. These impaired loans may have estimated impairment which is included in the allowance for loan losses. The Company’s commercial and consumer impaired loans are evaluated individually to determine the related allowance for loan losses. September 30, 2015 Recorded investment Impaired loans Unpaid with related Related Principal Impaired allowance for allowance for (dollars in thousands) Balance loans loan losses loan losses Commercial Owner occupied RE $ 900 876 876 351 Non-owner occupied RE 9,592 6,246 4,399 1,084 Construction 1,843 1,843 447 81 Business 4,335 3,720 2,669 1,989 Total commercial 16,670 12,685 8,391 3,505 Consumer Real estate 1,126 1,126 809 493 Home equity 405 405 155 155 Construction - - - - Other 201 201 201 201 Total consumer 1,732 1,732 1,165 849 Total $ 18,402 14,417 9,556 4,354 December 31, 2014 Recorded investment Impaired loans Unpaid with related Related Principal Impaired allowance for allowance for Balance loans loan losses loan losses Commercial Owner occupied RE $ 1,122 1,122 1,060 371 Non-owner occupied RE 5,813 4,522 2,777 801 Construction 5,268 2,726 1,315 324 Business 5,385 4,565 3,528 2,464 Total commercial 17,588 12,935 8,680 3,960 Consumer Real estate 1,620 1,620 1,299 585 Home equity 347 347 347 191 Construction - - - - Other 310 310 310 310 Total consumer 2,277 2,277 1,956 1,086 Total $ 19,865 15,212 10,636 5,046 The following table provides the average recorded investment in impaired loans and the amount of interest income recognized on impaired loans after impairment by portfolio segment and class. Three months ended Three months ended September 30, 2015 September 30, 2014 Average Recognized Average Average recorded interest recorded recorded (dollars in thousands) investment income investment investment Commercial Owner occupied RE $ 1,191 1 1,430 22 Non-owner occupied RE 5,622 22 6,582 31 Construction 1,887 12 1,752 - Business 3,923 30 4,298 38 Total commercial 12,623 65 14,062 91 Consumer Real estate 1,395 12 2,334 16 Home equity 406 3 254 2 Construction - - - - Other 208 2 327 4 Total consumer 2,009 17 2,915 22 Total $ 14,632 82 16,977 113 Nine months ended Nine months ended Year ended September 30, 2015 September 30, 2014 December 31, 2014 Average Recognized Average Recognized Average Recognized recorded interest recorded interest recorded interest (dollars in thousands) investment income investment income investment income Commercial Owner occupied RE $ 1,146 5 $ 1,680 25 1,568 47 Non-owner occupied RE 5,268 107 5,986 84 5,693 104 Construction 2,110 53 1,790 14 1,977 75 Business 4,168 99 4,511 105 4,522 154 Total commercial 12,692 264 13,967 228 13,760 380 Consumer Real estate 1,529 34 2,213 40 2,094 53 Home equity 376 13 227 8 251 10 Construction - - - - - - Other 237 5 274 10 282 13 Total consumer 2,142 52 2,714 58 2,627 76 Total $ 14,834 316 $ 16,681 286 16,387 456 Allowance for Loan Losses The allowance for loan loss is management’s estimate of credit losses inherent in the loan portfolio. The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The Company has an established process to determine the adequacy of the allowance for loan losses that assesses the losses inherent in the portfolio. While the Company attributes portions of the allowance to specific portfolio segments, the entire allowance is available to absorb credit losses inherent in the total loan portfolio. The Company’s process involves procedures to appropriately consider the unique risk characteristics of the commercial and consumer loan portfolio segments. For each portfolio segment, impairment is measured individually for each impaired loan. The Company’s allowance levels are influenced by loan volume, loan grade or delinquency status, historic loss experience and other economic conditions. The following table summarizes the activity related to the allowance for loan losses by commercial and consumer portfolio segments: Nine months ended September 30, 2015 Commercial Consumer (dollars in thousands) Owner Non-owner Construction Business Real Home Construction Other Total Balance, beginning of period $ 1,645 2,332 614 3,625 1,714 1,162 236 424 11,752 Provision for loan losses 816 797 (304 ) 653 439 75 57 (33 ) 2,500 Loan charge-offs (24 ) (204 ) - (621 ) (173 ) (13 ) - (5 ) (1,040 ) Loan recoveries - 8 - 102 - 46 - - 156 Net loan charge-offs (24 ) (196 ) - (519 ) (173 ) 33 - (5 ) (884 ) Balance, end of period $ 2,437 2,933 310 3,759 1,980 1,270 293 386 13,368 Net charge-offs to average loans (annualized) 0.13 % Allowance for loan losses to gross loans 1.35 % Allowance for loan losses to nonperforming loans 186.05 % Nine months ended September 30, 2014 Commercial Consumer (dollars in thousands) Owner Non-owner Construction Business Real Home equity Construction Other Total Balance, beginning of period $ 1,880 2,633 397 3,329 1,091 644 99 140 10,213 Provision for loan losses (138 ) 1,271 150 439 821 560 102 70 3,275 Loan charge-offs - (1,580 ) - (635 ) - (77 ) - (11 ) (2,303 ) Loan recoveries - 1 - 114 - 5 - - 120 Net loan charge-offs - (1,579 ) - (521 ) - (72 ) - (11 ) (2,183 ) Balance, end of period $ 1,742 2,325 547 3,247 1,912 1,132 201 199 11,305 Net charge-offs to average loans (annualized) 0.37 % Allowance for loan losses to gross loans 1.36 % Allowance for loan losses to nonperforming loans 141.99 % The following table disaggregates the allowance for loan losses and recorded investment in loans by impairment methodology. September 30, 2015 Allowance for loan losses Recorded investment in loans (dollars in thousands) Commercial Consumer Total Commercial Consumer Total Individually evaluated $ 3,505 849 4,354 12,685 1,732 14,417 Collectively evaluated 5,934 3,080 9,014 641,123 337,693 978,816 Total $ 9,439 3,929 13,368 653,808 339,425 993,233 December 31, 2014 Allowance for loan losses Recorded investment in loans Commercial Consumer Total Commercial Consumer Total Individually evaluated $ 3,960 1,086 5,046 12,935 2,277 15,212 Collectively evaluated 4,256 2,450 6,706 562,547 293,687 856,234 Total $ 8,216 3,536 11,752 575,482 295,964 871,446 |
Troubled Debt Restructurings
Troubled Debt Restructurings | 9 Months Ended |
Sep. 30, 2015 | |
Troubled Debt Restructurings [Abstract] | |
Troubled Debt Restructurings | NOTE 5 – Troubled Debt Restructurings At September 30, 2015, the Company had 31 loans totaling $8.1 million compared to 37 loans totaling $9.7 million at December 31, 2014, which were considered as TDRs. The Company considers a loan to be a TDR when the debtor experiences financial difficulties and the Company grants a concession to the debtor that it would not normally consider. Concessions can relate to the contractual interest rate, maturity date, or payment structure of the note. As part of the workout plan for individual loan relationships, the Company may restructure loan terms to assist borrowers facing financial challenges in the current economic environment. To date, the Company has restored three commercial loans previously classified as TDRs to accrual status. The following table summarizes the concession at the time of modification and the recorded investment in the Company’s TDRs before and after their modification during the nine months ended September 30, 2015 and 2014, respectively. For the nine months ended September 30, 2015 (dollars in thousands) Renewals deemed a Reduced Converted Maturity Total Pre- Post- Commercial Owner occupied RE - - - - - $ - $ - Non-owner occupied RE 1 - - 1 2 112 112 Construction - - - - - - - Business - - - - - - - Consumer Real estate - - - - - - - Home equity - - - - - - - Construction - - - - - - - Other - - - - - - - Total loans 1 - - 1 2 $ 112 $ 112 For the nine months ended September 30, 2014 (dollars in thousands) Renewals deemed a Reduced Converted Maturity Total Pre- Post- Commercial Owner occupied RE - - - - - $ - $ - Non-owner occupied RE - - - 2 2 275 285 Construction - - - - - - - Business 1 - - 2 3 263 263 Consumer Real estate - - 1 - 1 116 116 Home equity - - - - - - - Construction - - - - - - - Other 2 - - - 2 126 126 Total loans 3 - 1 4 8 $ 780 $ 790 The following table summarizes loans modified as TDRs at September 30, 2015 and 2014 for which there was a payment default (60 days past due) within 12 months of the restructuring date. For the nine months ended September 30, 2015 2014 Number of Recorded Number of Recorded (dollars in thousands) Loans Investment Loans Investment Commercial Owner occupied RE - $ - - $ - Non-owner occupied RE - - - - Construction - - - - Business - - - - Consumer Real estate - - - - Home equity - - - - Construction - - - - Other - - - - Total loans - $ - - $ - |
Fair Value Accounting
Fair Value Accounting | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Accounting [Abstract] | |
Fair Value Accounting | NOTE 6 – Fair Value Accounting FASB ASC 820, “Fair Value Measurement and Disclosures,” defines fair value 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. FASB ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1 – Quoted market price in active markets Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include certain debt and equity securities that are traded in an active exchange market. Level 2 – Significant other observable inputs Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include fixed income securities and mortgage-backed securities that are held in the Company’s available-for-sale portfolio and valued by a third-party pricing service, as well as certain impaired loans. Level 3 – Significant unobservable inputs Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. These methodologies may result in a significant portion of the fair value being derived from unobservable data. Following is a description of valuation methodologies used for assets recorded at fair value. Investment Securities Securities available for sale are valued on a recurring basis at quoted market prices where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable securities. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange or U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include mortgage-backed securities and debentures issued by government sponsored entities, municipal bonds and corporate debt securities. In certain cases where there is limited activity or less transparency around inputs to valuations, securities are classified as Level 3 within the valuation hierarchy. Securities held to maturity are valued at quoted market prices or dealer quotes similar to securities available for sale. The carrying value of Other Investments, such as Federal Reserve Bank and FHLB stock, approximates fair value based on their redemption provisions. Loans Held for Sale Loans held for sale include mortgage loans and are carried at the lower of cost or market value. The fair values of mortgage loans held for sale are based on current market rates from investors within the secondary market for loans with similar characteristics. Carrying value approximates fair value. Loans The Company does not record loans at fair value on a recurring basis. However, from time to time, a loan may be considered impaired and an allowance for loan losses may be established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures the impairment in accordance with FASB ASC 310, “Receivables.” The fair value of impaired loans is estimated using one of several methods, including collateral value, market value of similar debt, enterprise value, liquidation value, and discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. At September 30, 2015, a significant portion of the impaired loans were evaluated based on the fair value of the collateral. In accordance with FASB ASC 820, “Fair Value Measurement and Disclosures,” impaired loans where an allowance is established based on the fair value of collateral require classification in the fair value hierarchy. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company considers the impaired loan as nonrecurring Level 2. The Company’s current loan and appraisal policies require the Bank to obtain updated appraisals on an “as is” basis at renewal, or in the case of an impaired loan, on an annual basis, either through a new external appraisal or an appraisal evaluation. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company considers the impaired loan as nonrecurring Level 3. The fair value of impaired loans may also be estimated using the present value of expected future cash flows to be realized on the loan, which is also considered a Level 3 valuation. These fair value estimates are subject to fluctuations in assumptions about the amount and timing of expected cash flows as well as the choice of discount rate used in the present value calculation. Other Real Estate Owned (“OREO”) OREO, consisting of properties obtained through foreclosure or in satisfaction of loans, is reported at the lower of cost or fair value, determined on the basis of current appraisals, comparable sales, and other estimates of value obtained principally from independent sources, adjusted for estimated selling costs (Level 2). At the time of foreclosure, any excess of the loan balance over the fair value of the real estate held as collateral is treated as a charge against the allowance for loan losses. Gains or losses on sale and generally any subsequent adjustments to the value are recorded as a component of real estate owned activity. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company considers the OREO as nonrecurring Level 3. Assets and Liabilities Recorded at Fair Value on a Recurring Basis The tables below present the recorded amount of assets and liabilities measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014. September 30, 2015 (dollars in thousands) Level 1 Level 2 Level 3 Total Assets Securities available for sale US government agencies $ - 12,104 - 12,104 SBA securities - 4,983 - 4,983 State and political subdivisions - 19,462 - 19,462 Mortgage-backed securities - 29,797 - 29,797 Total assets measured at fair value on a recurring basis $ - 66,346 - 66,346 December 31, 2014 Level 1 Level 2 Level 3 Total Assets Securities available for sale US government agencies $ - 8,557 - 8,557 SBA securities - 5,154 - 5,154 State and political subdivisions - 16,800 - 16,800 Mortgage-backed securities - 24,513 - 24,513 Total assets measured at fair value on a recurring basis $ - 55,024 - 55,024 The Company has no liabilities carried at fair value or measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014. Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis The Company is predominantly an asset based lender with real estate serving as collateral on more than 80% of loans as of September 30, 2015. Loans which are deemed to be impaired are valued net of the allowance for loan losses, and other real estate owned is valued at the lower of cost or net realizable value of the underlying real estate collateral. Such market values are generally obtained using independent appraisals, which the Company considers to be level 2 inputs. The tables below present the recorded amount of assets and liabilities measured at fair value on a nonrecurring basis as of September 30, 2015 and December 31, 2014. As of September 30, 2015 (dollars in thousands) Level 1 Level 2 Level 3 Total Assets Impaired loans $ - 9,604 459 10,063 Other real estate owned - 2,228 429 2,657 Total assets measured at fair value on a nonrecurring basis $ - 11,832 888 12,720 As of December 31, 2014 Level 1 Level 2 Level 3 Total Assets Impaired loans $ - 9,461 705 10,166 Other real estate owned - 3,040 267 3,307 Total assets measured at fair value on a nonrecurring basis $ - 12,501 972 13,473 The Company has no liabilities carried at fair value or measured at fair value on a nonrecurring basis as of September 30, 2015 and December 31, 2014. For Level 3 assets and liabilities measured at fair value on a recurring or nonrecurring basis as of September 30, 2015, the significant unobservable inputs used in the fair value measurements were as follows: Valuation Technique Significant Unobservable Inputs Range of Inputs Impaired loans Appraised Value/Discounted Cash Flows Discounts to appraisals or cash flows for estimated holding and/or selling costs or age of appraisal 0-25% Other real estate owned Appraised Value/Comparable Sales Discounts to appraisals for estimated holding or selling costs 0-25% Fair Value of Financial Instruments Financial instruments require disclosure of fair value information, whether or not recognized in the consolidated balance sheets, when it is practical to estimate the fair value. A financial instrument is defined as cash, evidence of an ownership interest in an entity or a contractual obligation which requires the exchange of cash. Certain items are specifically excluded from the disclosure requirements, including the Company’s common stock, premises and equipment and other assets and liabilities. The following is a description of valuation methodologies used to estimate fair value for certain other financial instruments. Fair value approximates carrying value for the following financial instruments due to the short-term nature of the instrument: cash and due from banks, federal funds sold, federal funds purchased, and securities sold under agreement to repurchase. Deposits – Fair value for demand deposit accounts and interest-bearing accounts with no fixed maturity date is equal to the carrying value. The fair value of certificate of deposit accounts are estimated by discounting cash flows from expected maturities using current interest rates on similar instruments. FHLB Advances and Other Borrowings – Fair value for FHLB advances and other borrowings are estimated by discounting cash flows from expected maturities using current interest rates on similar instruments. Junior subordinated debentures – Fair value for junior subordinated debentures are estimated by discounting cash flows from expected maturities using current interest rates on similar instruments. The Company has used management’s best estimate of fair value based on the above assumptions. Thus, the fair values presented may not be the amounts that could be realized in an immediate sale or settlement of the instrument. In addition, any income taxes or other expenses, which would be incurred in an actual sale or settlement, are not taken into consideration in the fair value presented. The estimated fair values of the Company’s financial instruments at September 30, 2015 and December 31, 2014 are as follows: September 30, 2015 Carrying Fair (dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 50,337 50,337 50,337 - - Other investments, at cost 5,532 5,532 - - 5,532 Loans held for sale 10,887 10,887 - 10,887 - Loans, net 979,865 981,158 - 9,604 971,554 Financial Liabilities: Deposits 943,918 896,253 - 896,253 - FHLB and other borrowings 115,200 122,184 - 122,184 - Junior subordinated debentures 13,403 10,671 - 10,671 - December 31, 2014 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 41,264 41,264 41,264 - - Other investments, at cost 6,522 6,522 - - 6,522 Loans held for sale 11,765 11,765 - 11,765 - Loans, net 859,694 860,215 - 9,461 850,754 Financial Liabilities: Deposits 788,907 748,497 - 748,497 - FHLB and other borrowings 135,200 144,156 - 144,156 - Junior subordinated debentures 13,403 6,823 - 6,823 - |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Common Share [Abstract] | |
Earnings Per Common Share | NOTE 7 – Earnings Per Common Share The following schedule reconciles the numerators and denominators of the basic and diluted earnings per share computations for the three and nine month periods ended September 30, 2015 and 2014. Dilutive common shares arise from the potentially dilutive effect of the Company’s stock options that were outstanding at September 30, 2015. The assumed conversion of stock options can create a difference between basic and dilutive net income per common share. At September 30, 2015 and 2014, there were 88,000 and 110,463 options, respectively, that were not considered in computing diluted earnings per common share because they were anti-dilutive. Three months ended Nine months ended September 30, September 30, (dollars in thousands, except share data) 2015 2014 2015 2014 Numerator: Net income $ 2,727 1,826 7,315 4,643 Less: Preferred stock dividend - 253 - 699 Net income available to common shareholders $ 2,727 1,573 7,315 3,944 Denominator: Weighted-average common shares outstanding – basic 6,238,465 4,829,514 6,232,536 4,775,791 Common stock equivalents 340,983 216,973 310,360 208,762 Weighted-average common shares outstanding – diluted 6,579,448 5,046,487 6,542,896 4,984,553 Earnings per common share: Basic $ 0.44 0.33 1.17 0.83 Diluted $ 0.41 0.31 1.12 0.79 |
Nature of Business and Basis 15
Nature of Business and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Nature of Business and Basis of Presentation [Abstract] | |
Business Activity | Business Activity Southern First Bancshares, Inc. (the "Company") is a South Carolina corporation that owns all of the capital stock of Southern First Bank (the "Bank") and all of the stock of Greenville First Statutory Trust I and II (collectively, the "Trusts"). The Trusts are special purpose non-consolidated entities organized for the sole purpose of issuing trust preferred securities. The Bank's primary federal regulator is the Federal Deposit Insurance Corporation (the "FDIC"). The Bank is also regulated and examined by the South Carolina Board of Financial Institutions. The Bank is primarily engaged in the business of accepting demand deposits and savings deposits insured by the FDIC, and providing commercial, consumer and mortgage loans to the general public. |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine month periods ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 as filed with the Securities and Exchange Commission on March 3, 2015. The consolidated financial statements include the accounts of the Company and the Bank. In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, “Consolidation,” the financial statements related to the Trusts have not been consolidated. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amount of income and expenses during the reporting periods. 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, real estate acquired in the settlement of loans, fair value of financial instruments, evaluating other-than-temporary-impairment of investment securities and valuation of deferred tax assets. |
Reclassifications | Reclassifications Certain amounts, previously reported, have been reclassified to state all periods on a comparable basis and had no effect on shareholders’ equity or net income. |
Subsequent Events | Subsequent Events Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non-recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. Management performed an evaluation to determine whether there have been any subsequent events since the balance sheet date and determined that no subsequent events occurred requiring accrual or disclosure. |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Investment Securities [Abstract] | |
Amortized costs and fair value of investment securities | September 30, 2015 Amortized Gross Unrealized Fair (dollars in thousands) Cost Gains Losses Value Available for sale US government agencies $ 12,146 30 72 12,104 SBA securities 5,071 - 88 4,983 State and political subdivisions 19,097 416 51 19,462 Mortgage-backed securities 29,599 280 82 29,797 Total investment securities available for sale $ 65,913 726 293 66,346 December 31, 2014 Amortized Gross Unrealized Fair Cost Gains Losses Value Available for sale US government agencies $ 8,763 9 215 8,557 SBA securities 5,336 - 182 5,154 State and political subdivisions 16,253 598 51 16,800 Mortgage-backed securities 24,214 341 42 24,513 Total investment securities available for sale $ 54,566 948 490 55,024 |
Summary of contractual maturities and yields | September 30, 2015 Less than one year One to five years Five to ten years Over ten years Total (dollars in thousands) Amount Yield Amount Yield Amount Yield Amount Yield Amount Yield Available for sale US government agencies $ - - 2,008 1.77 % 2,373 2.13 % 7,723 2.42 % 12,104 2.26 % SBA securities - - - - - - 4,983 1.88 % 4,983 1.88 % State and political subdivisions 1,763 0.65 % 969 2.78 % 8,822 2.91 % 7,908 2.89 % 19,462 2.69 % Mortgage-backed securities - - - - 3,506 1.58 % 26,291 2.11 % 29,797 2.05 % Total $ 1,763 0.65 % 2,977 2.10 % 14,701 2.46 % 46,905 2.26 % 66,346 2.26 % December 31, 2014 Less than one year One to five years Five to ten years Over ten years Total Amount Yield Amount Yield Amount Yield Amount Yield Amount Yield Available for sale US government agencies $ - - 988 2.12 % - - 7,569 2.43 % 8,557 2.39 % SBA securities - - - - - - 5,154 1.88 % 5,154 1.88 % State and political subdivisions 2,082 0.68 % 399 3.14 % 8,465 3.23 % 5,854 3.00 % 16,800 2.82 % Mortgage-backed securities - - - - 2,118 1.66 % 22,395 2.62 % 24,513 2.54 % Total $ 2,082 0.68 % 1,387 2.41 % 10,583 2.91 % 40,972 2.54 % 55,024 2.54 % |
Summary of gross unrealized losses on investment securities and fair market value of related securities | September 30, 2015 Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) # value losses # value losses # value losses Available for sale US government agencies 2 $ 5,061 $ 72 - $ - $ - 2 $ 5,061 $ 72 SBA securities - - - 2 4,983 88 2 4,983 88 State and political subdivisions 6 2,489 18 4 2,244 33 10 4,733 51 Mortgage-backed securities 7 11,520 82 - - - 7 11,520 82 Total 15 $ 19,070 $ 172 6 $ 7,227 $ 121 21 $ 26,297 $ 293 December 31, 2014 Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized # value losses # value losses # value losses Available for sale US government agencies - $ - $ - 2 $ 7,569 $ 215 2 $ 7,569 $ 215 SBA securities - - - 2 5,154 182 2 5,154 182 State and political subdivisions - - - 7 3,488 51 7 3,488 51 Mortgage-backed securities 3 4,407 11 2 4,756 31 5 9,163 42 Total 3 $ 4,407 $ 11 13 $ 20,967 $ 479 16 $ 25,374 $ 490 |
Summary of other investments | (dollars in thousands) September 30, 2015 December 31, 2014 Federal Home Loan Bank stock $ 5,005 6,020 Investment in Trust Preferred securities 403 403 Other investments 124 99 Total other investments $ 5,532 6,522 |
Loans and Allowance for Loan 17
Loans and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Composition of loan portfolio | September 30, 2015 December 31, 2014 (dollars in thousands) Amount % of Total Amount % of Total Commercial Owner occupied RE $ 237,997 24.0 % $ 191,061 21.9 % Non-owner occupied RE 212,777 21.4 % 183,440 21.1 % Construction 32,985 3.3 % 50,995 5.8 % Business 170,049 17.1 % 149,986 17.2 % Total commercial loans 653,808 65.8 % 575,482 66.0 % Consumer Real estate 168,838 17.0 % 146,859 16.9 % Home equity 111,794 11.3 % 95,629 11.0 % Construction 43,555 4.4 % 39,226 4.5 % Other 15,238 1.5 % 14,250 1.6 % Total consumer loans 339,425 34.2 % 295,964 34.0 % Total gross loans, net of deferred fees 993,233 100.0 % 871,446 100.0 % Less—allowance for loan losses (13,368 ) (11,752 ) Total loans, net $ 979,865 $ 859,694 |
Loan maturity distribution by type and related interest rate | September 30, 2015 After one One year but within After five (dollars in thousands) or less five years years Total Commercial Owner occupied RE $ 18,701 146,061 73,235 237,997 Non-owner occupied RE 39,960 130,607 42,210 212,777 Construction 13,882 16,258 2,845 32,985 Business 70,478 87,226 12,345 170,049 Total commercial loans 143,021 380,152 130,635 653,808 Consumer Real estate 28,269 47,668 92,901 168,838 Home equity 4,842 32,466 74,486 111,794 Construction 17,661 2,835 23,059 43,555 Other 7,590 6,065 1,583 15,238 Total consumer loans 58,362 89,034 192,029 339,425 Total gross loans, net of deferred fees $ 201,383 469,186 322,664 993,233 Loans maturing after one year with: Fixed interest rates $ 590,605 Floating interest rates 201,247 December 31, 2014 After one One year but within After five or less five years years Total Commercial Owner occupied RE $ 20,737 98,110 72,214 191,061 Non-owner occupied RE 46,718 104,402 32,320 183,440 Construction 11,923 25,145 13,927 50,995 Business 75,718 65,899 8,369 149,986 Total commercial loans 155,096 293,556 126,830 575,482 Consumer Real estate 21,571 41,549 83,739 146,859 Home equity 5,645 28,394 61,590 95,629 Construction 13,531 2,073 23,622 39,226 Other 7,278 5,637 1,335 14,250 Total consumer 48,025 77,653 170,286 295,964 Total gross loan, net of deferred fees $ 203,121 371,209 297,116 871,446 Loans maturing after one year with: Fixed interest rates $ 494,058 Floating interest rates 174,267 |
Summary of nonperforming assets, including nonaccruing TDRs | (dollars in thousands) September 30, 2015 December 31, 2014 Commercial Owner occupied RE $ 718 322 Non-owner occupied RE 4,434 2,344 Construction - 783 Business 895 1,408 Consumer Real estate - 457 Home equity 250 188 Construction - - Other 1 1 Nonaccruing troubled debt restructurings 887 1,147 Total nonaccrual loans, including nonaccruing TDRs 7,185 6,650 Other real estate owned 2,657 3,307 Total nonperforming assets $ 9,842 9,957 Nonperforming assets as a percentage of: Total assets 0.84 % 0.97 % Gross loans 0.99 % 1.14 % Total loans over 90 days past due 5,101 5,735 Loans over 90 days past due and still accruing - - Accruing troubled debt restructurings $ 7,232 8,562 |
Summary of key information for impaired loans | September 30, 2015 Recorded investment Impaired loans Unpaid with related Related Principal Impaired allowance for allowance for (dollars in thousands) Balance loans loan losses loan losses Commercial Owner occupied RE $ 900 876 876 351 Non-owner occupied RE 9,592 6,246 4,399 1,084 Construction 1,843 1,843 447 81 Business 4,335 3,720 2,669 1,989 Total commercial 16,670 12,685 8,391 3,505 Consumer Real estate 1,126 1,126 809 493 Home equity 405 405 155 155 Construction - - - - Other 201 201 201 201 Total consumer 1,732 1,732 1,165 849 Total $ 18,402 14,417 9,556 4,354 December 31, 2014 Recorded investment Impaired loans Unpaid with related Related Principal Impaired allowance for allowance for Balance loans loan losses loan losses Commercial Owner occupied RE $ 1,122 1,122 1,060 371 Non-owner occupied RE 5,813 4,522 2,777 801 Construction 5,268 2,726 1,315 324 Business 5,385 4,565 3,528 2,464 Total commercial 17,588 12,935 8,680 3,960 Consumer Real estate 1,620 1,620 1,299 585 Home equity 347 347 347 191 Construction - - - - Other 310 310 310 310 Total consumer 2,277 2,277 1,956 1,086 Total $ 19,865 15,212 10,636 5,046 |
Average recorded investment and interest income recognized on impaired loans | Three months ended Three months ended September 30, 2015 September 30, 2014 Average Recognized Average Average recorded interest recorded recorded (dollars in thousands) investment income investment investment Commercial Owner occupied RE $ 1,191 1 1,430 22 Non-owner occupied RE 5,622 22 6,582 31 Construction 1,887 12 1,752 - Business 3,923 30 4,298 38 Total commercial 12,623 65 14,062 91 Consumer Real estate 1,395 12 2,334 16 Home equity 406 3 254 2 Construction - - - - Other 208 2 327 4 Total consumer 2,009 17 2,915 22 Total $ 14,632 82 16,977 113 Nine months ended Nine months ended Year ended September 30, 2015 September 30, 2014 December 31, 2014 Average Recognized Average Recognized Average Recognized recorded interest recorded interest recorded interest (dollars in thousands) investment income investment income investment income Commercial Owner occupied RE $ 1,146 5 $ 1,680 25 1,568 47 Non-owner occupied RE 5,268 107 5,986 84 5,693 104 Construction 2,110 53 1,790 14 1,977 75 Business 4,168 99 4,511 105 4,522 154 Total commercial 12,692 264 13,967 228 13,760 380 Consumer Real estate 1,529 34 2,213 40 2,094 53 Home equity 376 13 227 8 251 10 Construction - - - - - - Other 237 5 274 10 282 13 Total consumer 2,142 52 2,714 58 2,627 76 Total $ 14,834 316 $ 16,681 286 16,387 456 |
Summary of allowance for loan losses by commercial and consumer portfolio segments | Nine months ended September 30, 2015 Commercial Consumer (dollars in thousands) Owner Non-owner Construction Business Real Home Construction Other Total Balance, beginning of period $ 1,645 2,332 614 3,625 1,714 1,162 236 424 11,752 Provision for loan losses 816 797 (304 ) 653 439 75 57 (33 ) 2,500 Loan charge-offs (24 ) (204 ) - (621 ) (173 ) (13 ) - (5 ) (1,040 ) Loan recoveries - 8 - 102 - 46 - - 156 Net loan charge-offs (24 ) (196 ) - (519 ) (173 ) 33 - (5 ) (884 ) Balance, end of period $ 2,437 2,933 310 3,759 1,980 1,270 293 386 13,368 Net charge-offs to average loans (annualized) 0.13 % Allowance for loan losses to gross loans 1.35 % Allowance for loan losses to nonperforming loans 186.05 % Nine months ended September 30, 2014 Commercial Consumer (dollars in thousands) Owner Non-owner Construction Business Real Home equity Construction Other Total Balance, beginning of period $ 1,880 2,633 397 3,329 1,091 644 99 140 10,213 Provision for loan losses (138 ) 1,271 150 439 821 560 102 70 3,275 Loan charge-offs - (1,580 ) - (635 ) - (77 ) - (11 ) (2,303 ) Loan recoveries - 1 - 114 - 5 - - 120 Net loan charge-offs - (1,579 ) - (521 ) - (72 ) - (11 ) (2,183 ) Balance, end of period $ 1,742 2,325 547 3,247 1,912 1,132 201 199 11,305 Net charge-offs to average loans (annualized) 0.37 % Allowance for loan losses to gross loans 1.36 % Allowance for loan losses to nonperforming loans 141.99 % |
Allowance for loan losses and recorded investment in loans by impairment methodology | September 30, 2015 Allowance for loan losses Recorded investment in loans (dollars in thousands) Commercial Consumer Total Commercial Consumer Total Individually evaluated $ 3,505 849 4,354 12,685 1,732 14,417 Collectively evaluated 5,934 3,080 9,014 641,123 337,693 978,816 Total $ 9,439 3,929 13,368 653,808 339,425 993,233 December 31, 2014 Allowance for loan losses Recorded investment in loans Commercial Consumer Total Commercial Consumer Total Individually evaluated $ 3,960 1,086 5,046 12,935 2,277 15,212 Collectively evaluated 4,256 2,450 6,706 562,547 293,687 856,234 Total $ 8,216 3,536 11,752 575,482 295,964 871,446 |
Commercial [Member] | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Summary of breakdown of outstanding loans by risk category | September 30, 2015 Owner Non-owner (dollars in thousands) occupied RE occupied RE Construction Business Total Pass $ 232,326 203,061 31,143 161,171 627,701 Special mention 3,903 3,325 - 4,846 12,074 Substandard 1,768 6,391 1,842 4,032 14,033 Doubtful - - - - - $ 237,997 212,777 32,985 170,049 653,808 December 31, 2014 Owner Non-owner occupied RE occupied RE Construction Business Total Pass $ 184,158 173,711 48,140 140,432 546,441 Special mention 5,035 3,376 129 4,715 13,255 Substandard 1,868 6,353 2,726 4,839 15,786 Doubtful - - - - - $ 191,061 183,440 50,995 149,986 575,482 |
Outstanding loans which include loans on nonaccrual by past due status | September 30, 2015 Owner Non-owner (dollars in thousands) occupied RE occupied RE Construction Business Total Current $ 237,687 209,180 32,538 168,722 648,127 30-59 days past due - 449 - 328 777 60-89 days past due 54 - - - 54 Greater than 90 Days 256 3,148 447 999 4,850 $ 237,997 212,777 32,985 170,049 653,808 December 31, 2014 Owner Non-owner occupied RE occupied RE Construction Business Total Current $ 190,801 180,577 50,212 148,317 569,907 30-59 days past due - 49 - 35 84 60-89 days past due - 246 - 155 401 Greater than 90 Days 260 2,568 783 1,479 5,090 $ 191,061 183,440 50,995 149,986 575,482 |
Consumer [Member] | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Summary of breakdown of outstanding loans by risk category | September 30, 2015 (dollars in thousands) Real estate Home equity Construction Other Total Pass $ 166,613 107,764 42,552 15,086 332,015 Special mention 649 2,856 - 121 3,626 Substandard 1,576 1,174 1,003 31 3,784 Doubtful - - - - - $ 168,838 111,794 43,555 15,238 339,425 December 31, 2014 Real estate Home equity Construction Other Total Pass $ 144,070 91,084 39,226 14,013 288,393 Special mention 953 3,268 - 139 4,360 Substandard 1,836 1,277 - 98 3,211 Doubtful - - - - - $ 146,859 95,629 39,226 14,250 295,964 |
Outstanding loans which include loans on nonaccrual by past due status | September 30, 2015 (dollars in thousands) Real estate Home equity Construction Other Total Current $ 168,594 111,154 43,555 15,231 338,534 30-59 days past due 244 390 - - 634 60-89 days past due - - - 6 6 Greater than 90 Days - 250 - 1 251 $ 168,838 111,794 43,555 15,238 339,425 December 31, 2014 Real estate Home equity Construction Other Total Current $ 146,362 95,311 39,226 14,247 295,146 30-59 days past due 40 - - - 40 60-89 days past due - 130 - 3 133 Greater than 90 Days 457 188 - - 645 $ 146,859 95,629 39,226 14,250 295,964 |
Troubled Debt Restructurings (T
Troubled Debt Restructurings (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Troubled Debt Restructurings [Abstract] | |
Summary of concession at the time of modification and the recorded investment in TDRs before and after their modification | For the nine months ended September 30, 2015 (dollars in thousands) Renewals deemed a Reduced Converted Maturity Total Pre- Post- Commercial Owner occupied RE - - - - - $ - $ - Non-owner occupied RE 1 - - 1 2 112 112 Construction - - - - - - - Business - - - - - - - Consumer Real estate - - - - - - - Home equity - - - - - - - Construction - - - - - - - Other - - - - - - - Total loans 1 - - 1 2 $ 112 $ 112 For the nine months ended September 30, 2014 (dollars in thousands) Renewals deemed a Reduced Converted Maturity Total Pre- Post- Commercial Owner occupied RE - - - - - $ - $ - Non-owner occupied RE - - - 2 2 275 285 Construction - - - - - - - Business 1 - - 2 3 263 263 Consumer Real estate - - 1 - 1 116 116 Home equity - - - - - - - Construction - - - - - - - Other 2 - - - 2 126 126 Total loans 3 - 1 4 8 $ 780 $ 790 |
Summary of loans modified as TDRs within the previous 12-month period | For the nine months ended September 30, 2015 2014 Number of Recorded Number of Recorded (dollars in thousands) Loans Investment Loans Investment Commercial Owner occupied RE - $ - - $ - Non-owner occupied RE - - - - Construction - - - - Business - - - - Consumer Real estate - - - - Home equity - - - - Construction - - - - Other - - - - Total loans - $ - - $ - |
Fair Value Accounting (Tables)
Fair Value Accounting (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Accounting [Abstract] | |
Schedule of assets and liabilities measured at fair value on recurring basis | September 30, 2015 (dollars in thousands) Level 1 Level 2 Level 3 Total Assets Securities available for sale US government agencies $ - 12,104 - 12,104 SBA securities - 4,983 - 4,983 State and political subdivisions - 19,462 - 19,462 Mortgage-backed securities - 29,797 - 29,797 Total assets measured at fair value on a recurring basis $ - 66,346 - 66,346 December 31, 2014 Level 1 Level 2 Level 3 Total Assets Securities available for sale US government agencies $ - 8,557 - 8,557 SBA securities - 5,154 - 5,154 State and political subdivisions - 16,800 - 16,800 Mortgage-backed securities - 24,513 - 24,513 Total assets measured at fair value on a recurring basis $ - 55,024 - 55,024 |
Schedule of assets and liabilities measured on a nonrecurring basis | As of September 30, 2015 (dollars in thousands) Level 1 Level 2 Level 3 Total Assets Impaired loans $ - 9,604 459 10,063 Other real estate owned - 2,228 429 2,657 Total assets measured at fair value on a nonrecurring basis $ - 11,832 888 12,720 As of December 31, 2014 Level 1 Level 2 Level 3 Total Assets Impaired loans $ - 9,461 705 10,166 Other real estate owned - 3,040 267 3,307 Total assets measured at fair value on a nonrecurring basis $ - 12,501 972 13,47 |
Schedule of unobservable inputs used in the fair value measurements | Valuation Technique Significant Unobservable Inputs Range of Inputs Impaired loans Appraised Value/Discounted Cash Flows Discounts to appraisals or cash flows for estimated holding and/or selling costs or age of appraisal 0-25% Other real estate owned Appraised Value/Comparable Sales Discounts to appraisals for estimated holding or selling costs 0-25% |
Estimated fair values of the Company's financial instruments | September 30, 2015 Carrying Fair (dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 50,337 50,337 50,337 - - Other investments, at cost 5,532 5,532 - - 5,532 Loans held for sale 10,887 10,887 - 10,887 - Loans, net 979,865 981,158 - 9,604 971,554 Financial Liabilities: Deposits 943,918 896,253 - 896,253 - FHLB and other borrowings 115,200 122,184 - 122,184 - Junior subordinated debentures 13,403 10,671 - 10,671 - December 31, 2014 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 41,264 41,264 41,264 - - Other investments, at cost 6,522 6,522 - - 6,522 Loans held for sale 11,765 11,765 - 11,765 - Loans, net 859,694 860,215 - 9,461 850,754 Financial Liabilities: Deposits 788,907 748,497 - 748,497 - FHLB and other borrowings 135,200 144,156 - 144,156 - Junior subordinated debentures 13,403 6,823 - 6,823 - |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Common Share [Abstract] | |
Schedule of earnings per share reconciliation | Three months ended Nine months ended September 30, September 30, (dollars in thousands, except share data) 2015 2014 2015 2014 Numerator: Net income $ 2,727 1,826 7,315 4,643 Less: Preferred stock dividend - 253 - 699 Net income available to common shareholders $ 2,727 1,573 7,315 3,944 Denominator: Weighted-average common shares outstanding – basic 6,238,465 4,829,514 6,232,536 4,775,791 Common stock equivalents 340,983 216,973 310,360 208,762 Weighted-average common shares outstanding – diluted 6,579,448 5,046,487 6,542,896 4,984,553 Earnings per common share: Basic $ 0.44 $ 0.33 1.17 0.83 Diluted $ 0.41 $ 0.31 1.12 0.79 |
Preferred and Common Stock (Det
Preferred and Common Stock (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 12, 2014 | Nov. 12, 2014 | Sep. 30, 2015 | Dec. 31, 2014 |
Preferred and Common Stock (Textual) | ||||
Issuance of common stock, shares | 1,380,000 | |||
Offering price per share | $ 14.40 | |||
Net proceeds from offering | $ 18.4 | |||
Preferred stock, par value | $ 1,000 | $ 0.01 | $ 0.01 | |
Number of preferred stock repurchased | 11,242 | |||
Over-Allotment Option [Member] | ||||
Preferred and Common Stock (Textual) | ||||
Issuance of common stock, shares | 180,000 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Available for sale | ||
Total investment securities available for sale, Amortized Cost | $ 65,913 | $ 54,566 |
Total investment securities available for sale, Gross Unrealized Gains | 726 | 948 |
Total investment securities available for sale, Gross Unrealized Losses | 293 | 490 |
Available-for-sale securities, investment securities, Fair Value | 66,346 | 55,024 |
US Government agencies [Member] | ||
Available for sale | ||
Total investment securities available for sale, Amortized Cost | 12,146 | 8,763 |
Total investment securities available for sale, Gross Unrealized Gains | 30 | 9 |
Total investment securities available for sale, Gross Unrealized Losses | 72 | 215 |
Available-for-sale securities, investment securities, Fair Value | 12,104 | 8,557 |
SBA securities [Member] | ||
Available for sale | ||
Total investment securities available for sale, Amortized Cost | $ 5,071 | $ 5,336 |
Total investment securities available for sale, Gross Unrealized Gains | ||
Total investment securities available for sale, Gross Unrealized Losses | $ 88 | $ 182 |
Available-for-sale securities, investment securities, Fair Value | 4,983 | 5,154 |
States and Political Subdivisions [Member] | ||
Available for sale | ||
Total investment securities available for sale, Amortized Cost | 19,097 | 16,253 |
Total investment securities available for sale, Gross Unrealized Gains | 416 | 598 |
Total investment securities available for sale, Gross Unrealized Losses | 51 | 51 |
Available-for-sale securities, investment securities, Fair Value | 19,462 | 16,800 |
Mortgage Backed Securities [Member] | ||
Available for sale | ||
Total investment securities available for sale, Amortized Cost | 29,599 | 24,214 |
Total investment securities available for sale, Gross Unrealized Gains | 280 | 341 |
Total investment securities available for sale, Gross Unrealized Losses | 82 | 42 |
Available-for-sale securities, investment securities, Fair Value | $ 29,797 | $ 24,513 |
Investment Securities (Details
Investment Securities (Details 1) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Loan maturity distribution by type and related interest rate | ||
Available-for-sale Securities, Contractual Maturities, Less than one year, Value | $ 1,763 | $ 2,082 |
Available-for-sale Securities, Contractual Maturities, Less than one year, Yield | 0.65% | 0.68% |
Available-for-sale Securities, Contractual Maturities, One to Five Years, Value | $ 2,977 | $ 1,387 |
Available-for-sale Securities, Contractual Maturities, One to Five Years, Yield | 2.10% | 2.41% |
Available-for-sale Securities, Contractual Maturities, Five to Ten Years, Value | $ 14,701 | $ 10,583 |
Available-for-sale Securities, Contractual Maturities, Five to Ten Years, Yield | 2.46% | 2.91% |
Available-for-sale Securities, Contractual Maturities, Over Ten Years, Value | $ 46,905 | $ 40,972 |
Available-for-sale Securities, Contractual Maturities, Over Ten Years, Yield | 2.26% | 2.54% |
Investment securities available for sale, Value | $ 66,346 | $ 55,024 |
Available-for-sale Securities, Contractual Securities, Yield Total | 2.26% | 2.54% |
US Government agencies [Member] | ||
Loan maturity distribution by type and related interest rate | ||
Available-for-sale Securities, Contractual Maturities, Less than one year, Value | ||
Available-for-sale Securities, Contractual Maturities, Less than one year, Yield | ||
Available-for-sale Securities, Contractual Maturities, One to Five Years, Value | $ 2,008 | $ 988 |
Available-for-sale Securities, Contractual Maturities, One to Five Years, Yield | 1.77% | 2.12% |
Available-for-sale Securities, Contractual Maturities, Five to Ten Years, Value | $ 2,373 | |
Available-for-sale Securities, Contractual Maturities, Five to Ten Years, Yield | 2.13% | |
Available-for-sale Securities, Contractual Maturities, Over Ten Years, Value | $ 7,723 | $ 7,569 |
Available-for-sale Securities, Contractual Maturities, Over Ten Years, Yield | 2.42% | 2.43% |
Investment securities available for sale, Value | $ 12,104 | $ 8,557 |
Available-for-sale Securities, Contractual Securities, Yield Total | 2.26% | 2.39% |
SBA securities [Member] | ||
Loan maturity distribution by type and related interest rate | ||
Available-for-sale Securities, Contractual Maturities, Less than one year, Value | ||
Available-for-sale Securities, Contractual Maturities, Less than one year, Yield | ||
Available-for-sale Securities, Contractual Maturities, One to Five Years, Value | ||
Available-for-sale Securities, Contractual Maturities, One to Five Years, Yield | ||
Available-for-sale Securities, Contractual Maturities, Five to Ten Years, Value | ||
Available-for-sale Securities, Contractual Maturities, Five to Ten Years, Yield | ||
Available-for-sale Securities, Contractual Maturities, Over Ten Years, Value | $ 4,983 | $ 5,154 |
Available-for-sale Securities, Contractual Maturities, Over Ten Years, Yield | 1.88% | 1.88% |
Investment securities available for sale, Value | $ 4,983 | $ 5,154 |
Available-for-sale Securities, Contractual Securities, Yield Total | 1.88% | 1.88% |
States and political subdivisions [Member] | ||
Loan maturity distribution by type and related interest rate | ||
Available-for-sale Securities, Contractual Maturities, Less than one year, Value | $ 1,763 | $ 2,082 |
Available-for-sale Securities, Contractual Maturities, Less than one year, Yield | 0.65% | 0.68% |
Available-for-sale Securities, Contractual Maturities, One to Five Years, Value | $ 969 | $ 399 |
Available-for-sale Securities, Contractual Maturities, One to Five Years, Yield | 2.78% | 3.14% |
Available-for-sale Securities, Contractual Maturities, Five to Ten Years, Value | $ 8,822 | $ 8,465 |
Available-for-sale Securities, Contractual Maturities, Five to Ten Years, Yield | 2.91% | 3.23% |
Available-for-sale Securities, Contractual Maturities, Over Ten Years, Value | $ 7,908 | $ 5,854 |
Available-for-sale Securities, Contractual Maturities, Over Ten Years, Yield | 2.89% | 3.00% |
Investment securities available for sale, Value | $ 19,462 | $ 16,800 |
Available-for-sale Securities, Contractual Securities, Yield Total | 2.69% | 2.82% |
Mortgage-backed securities [Member] | ||
Loan maturity distribution by type and related interest rate | ||
Available-for-sale Securities, Contractual Maturities, Less than one year, Value | ||
Available-for-sale Securities, Contractual Maturities, Less than one year, Yield | ||
Available-for-sale Securities, Contractual Maturities, One to Five Years, Value | ||
Available-for-sale Securities, Contractual Maturities, One to Five Years, Yield | ||
Available-for-sale Securities, Contractual Maturities, Five to Ten Years, Value | $ 3,506 | $ 2,118 |
Available-for-sale Securities, Contractual Maturities, Five to Ten Years, Yield | 1.58% | 1.66% |
Available-for-sale Securities, Contractual Maturities, Over Ten Years, Value | $ 26,291 | $ 22,395 |
Available-for-sale Securities, Contractual Maturities, Over Ten Years, Yield | 2.11% | 2.62% |
Investment securities available for sale, Value | $ 29,797 | $ 24,513 |
Available-for-sale Securities, Contractual Securities, Yield Total | 2.05% | 2.54% |
Investment Securities (Detail24
Investment Securities (Details 2) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015USD ($)Investment | Dec. 31, 2014USD ($)Investment | |
Summary of gross unrealized losses on investment securities and fair market value of related securities | ||
Number of investments, Less than 12 months | Investment | 15 | 3 |
Available-for-sale Securities, Less than 12 months, Fair Value | $ 19,070 | $ 4,407 |
Available-for-sale Securities, Less than 12 Months, Unrealized losses | $ 172 | $ 11 |
Number of investments, 12 months or longer | Investment | 6 | 13 |
Available-for-sale Securities, 12 months or longer, Fair Value | $ 7,227 | $ 20,967 |
Available-for-sale Securities, 12 Months or Longer, Unrealized losses | $ 121 | $ 479 |
Number of investments, Total | Investment | 21 | 16 |
Available-for-sale Securities, Fair Value, Total | $ 26,297 | $ 25,374 |
Available-for-sale Securities, Unrealized Losses, Total | $ 293 | $ 490 |
US Government agencies [Member] | ||
Summary of gross unrealized losses on investment securities and fair market value of related securities | ||
Number of investments, Less than 12 months | Investment | 2 | |
Available-for-sale Securities, Less than 12 months, Fair Value | $ 5,061 | |
Available-for-sale Securities, Less than 12 Months, Unrealized losses | $ 72 | |
Number of investments, 12 months or longer | Investment | 2 | |
Available-for-sale Securities, 12 months or longer, Fair Value | $ 7,569 | |
Available-for-sale Securities, 12 Months or Longer, Unrealized losses | $ 215 | |
Number of investments, Total | Investment | 2 | 2 |
Available-for-sale Securities, Fair Value, Total | $ 5,061 | $ 7,569 |
Available-for-sale Securities, Unrealized Losses, Total | $ 72 | $ 215 |
SBA securities [Member] | ||
Summary of gross unrealized losses on investment securities and fair market value of related securities | ||
Number of investments, Less than 12 months | Investment | ||
Available-for-sale Securities, Less than 12 months, Fair Value | ||
Available-for-sale Securities, Less than 12 Months, Unrealized losses | ||
Number of investments, 12 months or longer | Investment | 2 | 2 |
Available-for-sale Securities, 12 months or longer, Fair Value | $ 4,983 | $ 5,154 |
Available-for-sale Securities, 12 Months or Longer, Unrealized losses | $ 88 | $ 182 |
Number of investments, Total | Investment | 2 | 2 |
Available-for-sale Securities, Fair Value, Total | $ 4,983 | $ 5,154 |
Available-for-sale Securities, Unrealized Losses, Total | $ 88 | $ 182 |
States and political subdivisions [Member] | ||
Summary of gross unrealized losses on investment securities and fair market value of related securities | ||
Number of investments, Less than 12 months | Investment | 6 | |
Available-for-sale Securities, Less than 12 months, Fair Value | $ 2,489 | |
Available-for-sale Securities, Less than 12 Months, Unrealized losses | $ 18 | |
Number of investments, 12 months or longer | Investment | 4 | 7 |
Available-for-sale Securities, 12 months or longer, Fair Value | $ 2,244 | $ 3,488 |
Available-for-sale Securities, 12 Months or Longer, Unrealized losses | $ 33 | $ 51 |
Number of investments, Total | Investment | 10 | 7 |
Available-for-sale Securities, Fair Value, Total | $ 4,733 | $ 3,488 |
Available-for-sale Securities, Unrealized Losses, Total | $ 51 | $ 51 |
Mortgage-backed securities [Member] | ||
Summary of gross unrealized losses on investment securities and fair market value of related securities | ||
Number of investments, Less than 12 months | Investment | 7 | 3 |
Available-for-sale Securities, Less than 12 months, Fair Value | $ 11,520 | $ 4,407 |
Available-for-sale Securities, Less than 12 Months, Unrealized losses | $ 82 | $ 11 |
Number of investments, 12 months or longer | Investment | 2 | |
Available-for-sale Securities, 12 months or longer, Fair Value | $ 4,756 | |
Available-for-sale Securities, 12 Months or Longer, Unrealized losses | $ 31 | |
Number of investments, Total | Investment | 7 | 5 |
Available-for-sale Securities, Fair Value, Total | $ 11,520 | $ 9,163 |
Available-for-sale Securities, Unrealized Losses, Total | $ 82 | $ 42 |
Investment Securities (Detail25
Investment Securities (Details 3) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Other investments | ||
Federal Home Loan Bank stock | $ 5,005 | $ 6,020 |
Investment in Trust Preferred securities | 403 | 403 |
Other investments | 124 | 99 |
Total other investments | $ 5,532 | $ 6,522 |
Investment Securities (Detail26
Investment Securities (Details Textual) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2015USD ($)Investment | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)Investment | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($)Investment | |
Investment Securities (Textual) | |||||||
Number of investments, Less than 12 months | Investment | 15 | 15 | 3 | ||||
Number of investments, 12 months or longer | Investment | 6 | 6 | 13 | ||||
Mortgage-backed securities & state and municipal obligation sold | $ 5,800 | ||||||
Gain on sale of investment securities | $ 2 | $ 36 | $ 259 | $ 297 | $ 230 | ||
Fair Market Value, less than 12 months | 19,100 | 19,100 | |||||
Fair Market Value,12 months or longer | 7,200 | 7,200 | |||||
Securities pledged as collateral for repurchase agreements from brokers | 21,000 | 21,000 | $ 21,800 | ||||
Securities pledged to secure client deposit | $ 11,200 | $ 11,200 | $ 12,900 | ||||
Investment securities sold reinvested | $ 4,300 |
Loans and Allowance for Loan 27
Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Composition of loan portfolio | ||
Total commercial loans | $ 653,808 | $ 575,482 |
Total consumer loans | 339,425 | 295,964 |
Total gross loans, net of deferred fees | $ 993,233 | $ 871,446 |
Total gross loans, net of deferred fees, (Percentage) | 100.00% | 100.00% |
Less allowance for loan losses | $ (13,368) | $ (11,752) |
Total loans, net | 979,865 | 859,694 |
Commercial [Member] | ||
Composition of loan portfolio | ||
Total commercial loans | $ 653,808 | $ 575,482 |
Total commercial loans, (Percentage) | 65.80% | 66.00% |
Total gross loans, net of deferred fees | $ 653,808 | $ 575,482 |
Commercial [Member] | Owner occupied RE [Member] | ||
Composition of loan portfolio | ||
Total commercial loans | $ 237,997 | $ 191,061 |
Total commercial loans, (Percentage) | 24.00% | 21.90% |
Commercial [Member] | Non-owner occupied RE [Member] | ||
Composition of loan portfolio | ||
Total commercial loans | $ 212,777 | $ 183,440 |
Total commercial loans, (Percentage) | 21.40% | 21.10% |
Commercial [Member] | Construction [Member] | ||
Composition of loan portfolio | ||
Total commercial loans | $ 32,985 | $ 50,995 |
Total commercial loans, (Percentage) | 3.30% | 5.80% |
Commercial [Member] | Business [Member] | ||
Composition of loan portfolio | ||
Total commercial loans | $ 170,049 | $ 149,986 |
Total commercial loans, (Percentage) | 17.10% | 17.20% |
Consumer [Member] | ||
Composition of loan portfolio | ||
Total consumer loans | $ 339,425 | $ 295,964 |
Total consumer loans, (Percentage) | 34.20% | 34.00% |
Total gross loans, net of deferred fees | $ 339,425 | $ 295,964 |
Consumer [Member] | Real estate [Member] | ||
Composition of loan portfolio | ||
Total consumer loans | $ 168,838 | $ 146,859 |
Total consumer loans, (Percentage) | 17.00% | 16.90% |
Consumer [Member] | Home equity [Member] | ||
Composition of loan portfolio | ||
Total consumer loans | $ 111,794 | $ 95,629 |
Total consumer loans, (Percentage) | 11.30% | 11.00% |
Consumer [Member] | Construction [Member] | ||
Composition of loan portfolio | ||
Total consumer loans | $ 43,555 | $ 39,226 |
Total consumer loans, (Percentage) | 4.40% | 4.50% |
Consumer [Member] | Other [Member] | ||
Composition of loan portfolio | ||
Total consumer loans | $ 15,238 | $ 14,250 |
Total consumer loans, (Percentage) | 1.50% | 1.60% |
Loans and Allowance for Loan 28
Loans and Allowance for Loan Losses (Details 1) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Loan maturity distribution by type and related interest rate | ||
Total gross loans, net of deferred fees, One year or less | $ 201,383 | $ 203,121 |
Total gross loans, net of deferred fees, After one but within five years | 469,186 | 371,209 |
Total gross loans, net of deferred fees, After five years | 322,664 | 297,116 |
Total gross loans, net of deferred fees | 993,233 | 871,446 |
Loans maturing after one year with fixed interest rates | 590,605 | 494,058 |
Loans maturing after one year with floating interest rates | 201,247 | 174,267 |
Commercial [Member] | ||
Loan maturity distribution by type and related interest rate | ||
Total gross loans, net of deferred fees, One year or less | 143,021 | 155,096 |
Total gross loans, net of deferred fees, After one but within five years | 380,152 | 293,556 |
Total gross loans, net of deferred fees, After five years | 130,635 | 126,830 |
Total gross loans, net of deferred fees | 653,808 | 575,482 |
Commercial [Member] | Owner occupied RE [Member] | ||
Loan maturity distribution by type and related interest rate | ||
Total gross loans, net of deferred fees, One year or less | 18,701 | 20,737 |
Total gross loans, net of deferred fees, After one but within five years | 146,061 | 98,110 |
Total gross loans, net of deferred fees, After five years | 73,235 | 72,214 |
Total gross loans, net of deferred fees | 237,997 | 191,061 |
Commercial [Member] | Non-owner occupied RE [Member] | ||
Loan maturity distribution by type and related interest rate | ||
Total gross loans, net of deferred fees, One year or less | 39,960 | 46,718 |
Total gross loans, net of deferred fees, After one but within five years | 130,607 | 104,402 |
Total gross loans, net of deferred fees, After five years | 42,210 | 32,320 |
Total gross loans, net of deferred fees | 212,777 | 183,440 |
Commercial [Member] | Construction [Member] | ||
Loan maturity distribution by type and related interest rate | ||
Total gross loans, net of deferred fees, One year or less | 13,882 | 11,923 |
Total gross loans, net of deferred fees, After one but within five years | 16,258 | 25,145 |
Total gross loans, net of deferred fees, After five years | 2,845 | 13,927 |
Total gross loans, net of deferred fees | 32,985 | 50,995 |
Commercial [Member] | Business [Member] | ||
Loan maturity distribution by type and related interest rate | ||
Total gross loans, net of deferred fees, One year or less | 70,478 | 75,718 |
Total gross loans, net of deferred fees, After one but within five years | 87,226 | 65,899 |
Total gross loans, net of deferred fees, After five years | 12,345 | 8,369 |
Total gross loans, net of deferred fees | 170,049 | 149,986 |
Consumer [Member] | ||
Loan maturity distribution by type and related interest rate | ||
Total gross loans, net of deferred fees, One year or less | 58,362 | 48,025 |
Total gross loans, net of deferred fees, After one but within five years | 89,034 | 77,653 |
Total gross loans, net of deferred fees, After five years | 192,029 | 170,286 |
Total gross loans, net of deferred fees | 339,425 | 295,964 |
Consumer [Member] | Real estate [Member] | ||
Loan maturity distribution by type and related interest rate | ||
Total gross loans, net of deferred fees, One year or less | 28,269 | 21,571 |
Total gross loans, net of deferred fees, After one but within five years | 47,668 | 41,549 |
Total gross loans, net of deferred fees, After five years | 92,901 | 83,739 |
Total gross loans, net of deferred fees | 168,838 | 146,859 |
Consumer [Member] | Home equity [Member] | ||
Loan maturity distribution by type and related interest rate | ||
Total gross loans, net of deferred fees, One year or less | 4,842 | 5,645 |
Total gross loans, net of deferred fees, After one but within five years | 32,466 | 28,394 |
Total gross loans, net of deferred fees, After five years | 74,486 | 61,590 |
Total gross loans, net of deferred fees | 111,794 | 95,629 |
Consumer [Member] | Construction [Member] | ||
Loan maturity distribution by type and related interest rate | ||
Total gross loans, net of deferred fees, One year or less | 17,661 | 13,531 |
Total gross loans, net of deferred fees, After one but within five years | 2,835 | 2,073 |
Total gross loans, net of deferred fees, After five years | 23,059 | 23,622 |
Total gross loans, net of deferred fees | 43,555 | 39,226 |
Consumer [Member] | Other [Member] | ||
Loan maturity distribution by type and related interest rate | ||
Total gross loans, net of deferred fees, One year or less | 7,590 | 7,278 |
Total gross loans, net of deferred fees, After one but within five years | 6,065 | 5,637 |
Total gross loans, net of deferred fees, After five years | 1,583 | 1,335 |
Total gross loans, net of deferred fees | $ 15,238 | $ 14,250 |
Loans and Allowance for Loan 29
Loans and Allowance for Loan Losses (Details 2) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | $ 653,808 | $ 575,482 |
Outstanding consumer loans | 339,425 | 295,964 |
Owner occupied RE [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 237,997 | 191,061 |
Non-owner occupied RE [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 212,777 | 183,440 |
Real estate [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 168,838 | 146,859 |
Home equity [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 111,794 | 95,629 |
Construction [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 32,985 | 50,995 |
Outstanding consumer loans | 43,555 | 39,226 |
Business [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 170,049 | 149,986 |
Other [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 15,238 | 14,250 |
Pass [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 627,701 | 546,441 |
Outstanding consumer loans | 332,015 | 288,393 |
Pass [Member] | Owner occupied RE [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 232,326 | 184,158 |
Pass [Member] | Non-owner occupied RE [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 203,061 | 173,711 |
Pass [Member] | Real estate [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 166,613 | 144,070 |
Pass [Member] | Home equity [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 107,764 | 91,084 |
Pass [Member] | Construction [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 31,143 | 48,140 |
Outstanding consumer loans | 42,552 | 39,226 |
Pass [Member] | Business [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 161,171 | 140,432 |
Pass [Member] | Other [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 15,086 | 14,013 |
Special Mention [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 12,074 | 13,255 |
Outstanding consumer loans | 3,626 | 4,360 |
Special Mention [Member] | Owner occupied RE [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 3,903 | 5,035 |
Special Mention [Member] | Non-owner occupied RE [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 3,325 | 3,376 |
Special Mention [Member] | Real estate [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 649 | 953 |
Special Mention [Member] | Home equity [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | $ 2,856 | 3,268 |
Special Mention [Member] | Construction [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | $ 129 | |
Outstanding consumer loans | ||
Special Mention [Member] | Business [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | $ 4,846 | $ 4,715 |
Special Mention [Member] | Other [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 121 | 139 |
Substandard [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 14,033 | 15,786 |
Outstanding consumer loans | 3,784 | 3,211 |
Substandard [Member] | Owner occupied RE [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 1,768 | 1,868 |
Substandard [Member] | Non-owner occupied RE [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 6,391 | 6,353 |
Substandard [Member] | Real estate [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 1,576 | 1,836 |
Substandard [Member] | Home equity [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 1,174 | 1,277 |
Substandard [Member] | Construction [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 1,842 | $ 2,726 |
Outstanding consumer loans | 1,003 | |
Substandard [Member] | Business [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 4,032 | $ 4,839 |
Substandard [Member] | Other [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | $ 31 | $ 98 |
Doubtful [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | ||
Outstanding consumer loans | ||
Doubtful [Member] | Owner occupied RE [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | ||
Doubtful [Member] | Non-owner occupied RE [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | ||
Doubtful [Member] | Real estate [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | ||
Doubtful [Member] | Home equity [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | ||
Doubtful [Member] | Construction [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | ||
Outstanding consumer loans | ||
Doubtful [Member] | Business [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | ||
Doubtful [Member] | Other [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans |
Loans and Allowance for Loan 30
Loans and Allowance for Loan Losses (Details 3) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Outstanding commercial and consumer loans which include loans on nonaccrual by past due status as well as accruing TDRs | ||
Total commercial loans | $ 653,808 | $ 575,482 |
Total consumer loans | 339,425 | 295,964 |
Commercial [Member] | ||
Outstanding commercial and consumer loans which include loans on nonaccrual by past due status as well as accruing TDRs | ||
Current | 648,127 | 569,907 |
30-59 days past due | 777 | 84 |
60-89 days past due | 54 | 401 |
Greater than 90 Days | 4,850 | 5,090 |
Total commercial loans | 653,808 | 575,482 |
Commercial [Member] | Owner occupied RE [Member] | ||
Outstanding commercial and consumer loans which include loans on nonaccrual by past due status as well as accruing TDRs | ||
Current | $ 237,687 | $ 190,801 |
30-59 days past due | ||
60-89 days past due | $ 54 | |
Greater than 90 Days | 256 | $ 260 |
Total commercial loans | 237,997 | 191,061 |
Commercial [Member] | Non-owner occupied RE [Member] | ||
Outstanding commercial and consumer loans which include loans on nonaccrual by past due status as well as accruing TDRs | ||
Current | 209,180 | 180,577 |
30-59 days past due | $ 449 | 49 |
60-89 days past due | 246 | |
Greater than 90 Days | $ 3,148 | 2,568 |
Total commercial loans | 212,777 | 183,440 |
Commercial [Member] | Construction [Member] | ||
Outstanding commercial and consumer loans which include loans on nonaccrual by past due status as well as accruing TDRs | ||
Current | $ 32,538 | $ 50,212 |
30-59 days past due | ||
60-89 days past due | ||
Greater than 90 Days | $ 447 | $ 783 |
Total commercial loans | 32,985 | 50,995 |
Commercial [Member] | Business [Member] | ||
Outstanding commercial and consumer loans which include loans on nonaccrual by past due status as well as accruing TDRs | ||
Current | 168,722 | 148,317 |
30-59 days past due | $ 328 | 35 |
60-89 days past due | 155 | |
Greater than 90 Days | $ 999 | 1,479 |
Total commercial loans | 170,049 | 149,986 |
Consumer [Member] | ||
Outstanding commercial and consumer loans which include loans on nonaccrual by past due status as well as accruing TDRs | ||
Current | 338,534 | 294,146 |
30-59 days past due | 634 | 40 |
60-89 days past due | 6 | 133 |
Greater than 90 Days | 251 | 645 |
Total consumer loans | 339,425 | 295,964 |
Consumer [Member] | Real estate [Member] | ||
Outstanding commercial and consumer loans which include loans on nonaccrual by past due status as well as accruing TDRs | ||
Current | 168,594 | 146,362 |
30-59 days past due | $ 244 | $ 40 |
60-89 days past due | ||
Greater than 90 Days | $ 457 | |
Total consumer loans | $ 168,838 | 146,859 |
Consumer [Member] | Home equity [Member] | ||
Outstanding commercial and consumer loans which include loans on nonaccrual by past due status as well as accruing TDRs | ||
Current | 111,154 | $ 95,311 |
30-59 days past due | $ 390 | |
60-89 days past due | $ 130 | |
Greater than 90 Days | $ 250 | 188 |
Total consumer loans | 111,794 | 95,629 |
Consumer [Member] | Construction [Member] | ||
Outstanding commercial and consumer loans which include loans on nonaccrual by past due status as well as accruing TDRs | ||
Current | $ 43,555 | $ 39,226 |
30-59 days past due | ||
60-89 days past due | ||
Greater than 90 Days | ||
Total consumer loans | $ 43,555 | $ 39,226 |
Consumer [Member] | Other [Member] | ||
Outstanding commercial and consumer loans which include loans on nonaccrual by past due status as well as accruing TDRs | ||
Current | $ 15,231 | $ 14,247 |
30-59 days past due | ||
60-89 days past due | $ 6 | $ 3 |
Greater than 90 Days | 1 | |
Total consumer loans | $ 15,238 | $ 14,250 |
Loans and Allowance for Loan 31
Loans and Allowance for Loan Losses (Details 4) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Summary of nonperforming assets including nonaccruing TDRs | ||
Nonaccruing troubled debt restructurings | $ 887 | $ 1,147 |
Total nonaccrual loans, including nonaccruing TDRs | 7,185 | 6,650 |
Other real estate owned | 2,657 | 3,307 |
Total nonperforming assets | $ 9,842 | $ 9,957 |
Nonperforming assets as a percentage of: | ||
Total assets | 0.84% | 0.97% |
Gross loans | 0.99% | 1.14% |
Total loans over 90 days past due | $ 5,101 | $ 5,735 |
Loans over 90 days past due and still accruing | ||
Accruing troubled debt restructurings | $ 7,232 | $ 8,562 |
Commercial [Member] | Owner occupied RE [Member] | ||
Summary of nonperforming assets including nonaccruing TDRs | ||
Total nonaccrual loans, including nonaccruing TDRs | 718 | 322 |
Commercial [Member] | Non-owner occupied RE [Member] | ||
Summary of nonperforming assets including nonaccruing TDRs | ||
Total nonaccrual loans, including nonaccruing TDRs | $ 4,434 | 2,344 |
Commercial [Member] | Construction [Member] | ||
Summary of nonperforming assets including nonaccruing TDRs | ||
Total nonaccrual loans, including nonaccruing TDRs | 783 | |
Commercial [Member] | Business [Member] | ||
Summary of nonperforming assets including nonaccruing TDRs | ||
Total nonaccrual loans, including nonaccruing TDRs | $ 895 | 1,408 |
Consumer [Member] | Real estate [Member] | ||
Summary of nonperforming assets including nonaccruing TDRs | ||
Total nonaccrual loans, including nonaccruing TDRs | 457 | |
Consumer [Member] | Home equity [Member] | ||
Summary of nonperforming assets including nonaccruing TDRs | ||
Total nonaccrual loans, including nonaccruing TDRs | $ 250 | $ 188 |
Consumer [Member] | Construction [Member] | ||
Summary of nonperforming assets including nonaccruing TDRs | ||
Total nonaccrual loans, including nonaccruing TDRs | ||
Consumer [Member] | Other [Member] | ||
Summary of nonperforming assets including nonaccruing TDRs | ||
Total nonaccrual loans, including nonaccruing TDRs | $ 1 | $ 1 |
Loans and Allowance for Loan 32
Loans and Allowance for Loan Losses (Details 5) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Summary of key information for impaired loans | ||
Unpaid Principal Balance | $ 18,402 | $ 19,865 |
Impaired Loans | 14,417 | 15,212 |
Impaired loans with related allowance for loan losses | 9,556 | 10,636 |
Related allowance for loan losses | 4,354 | 5,046 |
Commercial [Member] | ||
Summary of key information for impaired loans | ||
Unpaid Principal Balance | 16,670 | 17,588 |
Impaired Loans | 12,685 | 12,935 |
Impaired loans with related allowance for loan losses | 8,391 | 8,680 |
Related allowance for loan losses | 3,505 | 3,960 |
Commercial [Member] | Owner occupied RE [Member] | ||
Summary of key information for impaired loans | ||
Unpaid Principal Balance | 900 | 1,122 |
Impaired Loans | 876 | 1,122 |
Impaired loans with related allowance for loan losses | 876 | 1,060 |
Related allowance for loan losses | 351 | 371 |
Commercial [Member] | Non-owner occupied RE [Member] | ||
Summary of key information for impaired loans | ||
Unpaid Principal Balance | 9,592 | 5,813 |
Impaired Loans | 6,246 | 4,522 |
Impaired loans with related allowance for loan losses | 4,399 | 2,777 |
Related allowance for loan losses | 1,084 | 801 |
Commercial [Member] | Construction [Member] | ||
Summary of key information for impaired loans | ||
Unpaid Principal Balance | 1,843 | 5,268 |
Impaired Loans | 1,843 | 2,726 |
Impaired loans with related allowance for loan losses | 447 | 1,315 |
Related allowance for loan losses | 81 | 324 |
Commercial [Member] | Business [Member] | ||
Summary of key information for impaired loans | ||
Unpaid Principal Balance | 4,335 | 5,385 |
Impaired Loans | 3,720 | 4,565 |
Impaired loans with related allowance for loan losses | 2,669 | 3,528 |
Related allowance for loan losses | 1,989 | 2,464 |
Consumer [Member] | ||
Summary of key information for impaired loans | ||
Unpaid Principal Balance | 1,732 | 2,277 |
Impaired Loans | 1,732 | 2,277 |
Impaired loans with related allowance for loan losses | 1,165 | 1,956 |
Related allowance for loan losses | 849 | 1,086 |
Consumer [Member] | Real estate [Member] | ||
Summary of key information for impaired loans | ||
Unpaid Principal Balance | 1,126 | 1,620 |
Impaired Loans | 1,126 | 1,620 |
Impaired loans with related allowance for loan losses | 809 | 1,299 |
Related allowance for loan losses | 493 | 585 |
Consumer [Member] | Home equity [Member] | ||
Summary of key information for impaired loans | ||
Unpaid Principal Balance | 405 | 347 |
Impaired Loans | 405 | 347 |
Impaired loans with related allowance for loan losses | 155 | 347 |
Related allowance for loan losses | $ 155 | $ 191 |
Consumer [Member] | Construction [Member] | ||
Summary of key information for impaired loans | ||
Unpaid Principal Balance | ||
Impaired Loans | ||
Impaired loans with related allowance for loan losses | ||
Related allowance for loan losses | ||
Consumer [Member] | Other [Member] | ||
Summary of key information for impaired loans | ||
Unpaid Principal Balance | $ 201 | $ 310 |
Impaired Loans | 201 | 310 |
Impaired loans with related allowance for loan losses | 201 | 310 |
Related allowance for loan losses | $ 201 | $ 310 |
Loans and Allowance for Loan 33
Loans and Allowance for Loan Losses (Details 6) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Average recorded investment and interest income recognized on impaired loans | |||||
Average recorded investment | $ 14,632 | $ 16,977 | $ 14,834 | $ 16,681 | $ 16,387 |
Recognized interest income | 82 | 113 | 316 | 286 | 456 |
Commercial [Member] | |||||
Average recorded investment and interest income recognized on impaired loans | |||||
Average recorded investment | 12,623 | 14,062 | 12,692 | 13,967 | 13,760 |
Recognized interest income | 65 | 91 | 264 | 228 | 380 |
Commercial [Member] | Owner occupied RE [Member] | |||||
Average recorded investment and interest income recognized on impaired loans | |||||
Average recorded investment | 1,191 | 1,430 | 1,146 | 1,680 | 1,568 |
Recognized interest income | 1 | 22 | 5 | 25 | 47 |
Commercial [Member] | Non-owner occupied RE [Member] | |||||
Average recorded investment and interest income recognized on impaired loans | |||||
Average recorded investment | 5,622 | 6,582 | 5,268 | 5,986 | 5,693 |
Recognized interest income | 22 | 31 | 107 | 84 | 104 |
Commercial [Member] | Construction [Member] | |||||
Average recorded investment and interest income recognized on impaired loans | |||||
Average recorded investment | 1,887 | $ 1,752 | 2,110 | 1,790 | 1,977 |
Recognized interest income | 12 | 53 | 14 | 75 | |
Commercial [Member] | Business [Member] | |||||
Average recorded investment and interest income recognized on impaired loans | |||||
Average recorded investment | 3,923 | $ 4,298 | 4,168 | 4,511 | 4,522 |
Recognized interest income | 30 | 38 | 99 | 105 | 154 |
Consumer [Member] | |||||
Average recorded investment and interest income recognized on impaired loans | |||||
Average recorded investment | 2,009 | 2,915 | 2,142 | 2,714 | 2,627 |
Recognized interest income | 17 | 22 | 52 | 58 | 76 |
Consumer [Member] | Real estate [Member] | |||||
Average recorded investment and interest income recognized on impaired loans | |||||
Average recorded investment | 1,395 | 2,334 | 1,529 | 2,213 | 2,094 |
Recognized interest income | 12 | 16 | 34 | 40 | 53 |
Consumer [Member] | Home equity [Member] | |||||
Average recorded investment and interest income recognized on impaired loans | |||||
Average recorded investment | 406 | 254 | 376 | 227 | 251 |
Recognized interest income | $ 3 | $ 2 | $ 13 | $ 8 | $ 10 |
Consumer [Member] | Construction [Member] | |||||
Average recorded investment and interest income recognized on impaired loans | |||||
Average recorded investment | |||||
Recognized interest income | |||||
Consumer [Member] | Other [Member] | |||||
Average recorded investment and interest income recognized on impaired loans | |||||
Average recorded investment | $ 208 | $ 327 | $ 237 | $ 274 | $ 282 |
Recognized interest income | $ 2 | $ 4 | $ 5 | $ 10 | $ 13 |
Loans and Allowance for Loan 34
Loans and Allowance for Loan Losses (Details 7) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Summary of activity related to our allowance for loan losses | ||||
Balance, beginning of period | $ 11,752 | $ 10,213 | ||
Provision for loan losses | $ 875 | $ 1,325 | 2,500 | 3,275 |
Loan charge-offs | (1,040) | (2,303) | ||
Loan recoveries | 156 | 120 | ||
Net loan charge-offs | (884) | (2,183) | ||
Balance, end of period | 13,368 | 11,305 | $ 13,368 | $ 11,305 |
Net charge-offs to average loans (annualized) | 0.13% | 0.37% | ||
Allowance for loan losses to gross loans | 1.35% | 1.36% | ||
Allowance for loan losses to nonperforming loans | 186.05% | 141.99% | ||
Commercial [Member] | Owner occupied RE [Member] | ||||
Summary of activity related to our allowance for loan losses | ||||
Balance, beginning of period | $ 1,645 | $ 1,880 | ||
Provision for loan losses | 816 | $ (138) | ||
Loan charge-offs | $ (24) | |||
Loan recoveries | ||||
Net loan charge-offs | $ (24) | |||
Balance, end of period | 2,437 | 1,742 | 2,437 | $ 1,742 |
Commercial [Member] | Non-owner occupied RE [Member] | ||||
Summary of activity related to our allowance for loan losses | ||||
Balance, beginning of period | 2,332 | 2,633 | ||
Provision for loan losses | 797 | 1,271 | ||
Loan charge-offs | (204) | (1,580) | ||
Loan recoveries | 8 | 1 | ||
Net loan charge-offs | (196) | (1,579) | ||
Balance, end of period | 2,933 | 2,325 | 2,933 | 2,325 |
Commercial [Member] | Construction [Member] | ||||
Summary of activity related to our allowance for loan losses | ||||
Balance, beginning of period | 614 | 397 | ||
Provision for loan losses | $ (304) | $ 150 | ||
Loan charge-offs | ||||
Loan recoveries | ||||
Net loan charge-offs | ||||
Balance, end of period | 310 | 547 | $ 310 | $ 547 |
Commercial [Member] | Business [Member] | ||||
Summary of activity related to our allowance for loan losses | ||||
Balance, beginning of period | 3,625 | 3,329 | ||
Provision for loan losses | 653 | 439 | ||
Loan charge-offs | (621) | (635) | ||
Loan recoveries | 102 | 114 | ||
Net loan charge-offs | (519) | (521) | ||
Balance, end of period | 3,759 | 3,247 | 3,759 | 3,247 |
Consumer [Member] | Real estate [Member] | ||||
Summary of activity related to our allowance for loan losses | ||||
Balance, beginning of period | 1,714 | 1,091 | ||
Provision for loan losses | 439 | $ 821 | ||
Loan charge-offs | $ (173) | |||
Loan recoveries | ||||
Net loan charge-offs | $ (173) | |||
Balance, end of period | 1,980 | 1,912 | 1,980 | $ 1,912 |
Consumer [Member] | Home equity [Member] | ||||
Summary of activity related to our allowance for loan losses | ||||
Balance, beginning of period | 1,162 | 644 | ||
Provision for loan losses | 75 | 560 | ||
Loan charge-offs | (13) | (77) | ||
Loan recoveries | 46 | 5 | ||
Net loan charge-offs | 33 | (72) | ||
Balance, end of period | 1,270 | 1,132 | 1,270 | 1,132 |
Consumer [Member] | Construction [Member] | ||||
Summary of activity related to our allowance for loan losses | ||||
Balance, beginning of period | 236 | 99 | ||
Provision for loan losses | $ 57 | $ 102 | ||
Loan charge-offs | ||||
Loan recoveries | ||||
Net loan charge-offs | ||||
Balance, end of period | 293 | 201 | $ 293 | $ 201 |
Consumer [Member] | Other [Member] | ||||
Summary of activity related to our allowance for loan losses | ||||
Balance, beginning of period | 424 | 140 | ||
Provision for loan losses | (33) | 70 | ||
Loan charge-offs | $ (5) | $ (11) | ||
Loan recoveries | ||||
Net loan charge-offs | $ (5) | $ (11) | ||
Balance, end of period | $ 386 | $ 199 | $ 386 | $ 199 |
Loans and Allowance for Loan 35
Loans and Allowance for Loan Losses (Details 8) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Allowance for loan losses and recorded investment in loans by impairment methodology | ||
Allowance for loan losses, Individually evaluated | $ 4,354 | $ 5,046 |
Allowance for loan losses, Collectively evaluated | 9,014 | 6,706 |
Allowance for loan losses, Total | 13,368 | 11,752 |
Recorded investment in loans, Individually evaluated | 14,417 | 15,212 |
Recorded investment in loans, Collectively evaluated | 978,816 | 856,234 |
Total gross loans, net of deferred fees | 993,233 | 871,446 |
Commercial [Member] | ||
Allowance for loan losses and recorded investment in loans by impairment methodology | ||
Allowance for loan losses, Individually evaluated | 3,505 | 3,960 |
Allowance for loan losses, Collectively evaluated | 5,934 | 4,256 |
Allowance for loan losses, Total | 9,439 | 8,216 |
Recorded investment in loans, Individually evaluated | 12,685 | 12,935 |
Recorded investment in loans, Collectively evaluated | 641,123 | 562,547 |
Total gross loans, net of deferred fees | 653,808 | 575,482 |
Consumer [Member] | ||
Allowance for loan losses and recorded investment in loans by impairment methodology | ||
Allowance for loan losses, Individually evaluated | 849 | 1,086 |
Allowance for loan losses, Collectively evaluated | 3,080 | 2,450 |
Allowance for loan losses, Total | 3,929 | 3,536 |
Recorded investment in loans, Individually evaluated | 1,732 | 2,277 |
Recorded investment in loans, Collectively evaluated | 337,693 | 293,687 |
Total gross loans, net of deferred fees | $ 339,425 | $ 295,964 |
Loans and Allowance for Loan 36
Loans and Allowance for Loan Losses (Details Textual) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Loan and Allowance For Loan Losses (Textual) | ||
Net of deferred loan fees and costs | $ 1.8 | $ 1.8 |
Part of loans of 30 days or More past due as a percentage of total loan portfolio | 0.66% | 0.73% |
Commercial [Member] | ||
Loan and Allowance For Loan Losses (Textual) | ||
Part of loans of 30 days or More past due as a percentage of total loan portfolio | 0.57% | 0.64% |
Consumer [Member] | ||
Loan and Allowance For Loan Losses (Textual) | ||
Part of loans of 30 days or More past due as a percentage of total loan portfolio | 0.09% | 0.09% |
Troubled Debt Restructurings (D
Troubled Debt Restructurings (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015USD ($)Investment | Sep. 30, 2014USD ($)Investment | |
Summary of concession at the time of modification and the recorded investment in TDRs before and after their modification | ||
Renewals deemed concession | 1 | 3 |
Reduced or deferred payments | ||
Converted to interest only | 1 | |
Maturity date extensions | 1 | 4 |
Total number of loans | 2 | 8 |
Pre-modification outstanding recorded investment | $ | $ 112 | $ 780 |
Post-modification outstanding recorded investment | $ | $ 112 | $ 790 |
Commercial [Member] | Owner occupied [Member] | ||
Summary of concession at the time of modification and the recorded investment in TDRs before and after their modification | ||
Renewals deemed concession | ||
Reduced or deferred payments | ||
Converted to interest only | ||
Maturity date extensions | ||
Total number of loans | ||
Pre-modification outstanding recorded investment | $ | ||
Post-modification outstanding recorded investment | $ | ||
Commercial [Member] | Non-owner occupied [Member] | ||
Summary of concession at the time of modification and the recorded investment in TDRs before and after their modification | ||
Renewals deemed concession | 1 | |
Reduced or deferred payments | ||
Converted to interest only | ||
Maturity date extensions | 1 | 2 |
Total number of loans | 2 | 2 |
Pre-modification outstanding recorded investment | $ | $ 112 | $ 275 |
Post-modification outstanding recorded investment | $ | $ 112 | $ 285 |
Commercial [Member] | Construction [Member] | ||
Summary of concession at the time of modification and the recorded investment in TDRs before and after their modification | ||
Renewals deemed concession | ||
Reduced or deferred payments | ||
Converted to interest only | ||
Maturity date extensions | ||
Total number of loans | ||
Pre-modification outstanding recorded investment | $ | ||
Post-modification outstanding recorded investment | $ | ||
Commercial [Member] | Business [Member] | ||
Summary of concession at the time of modification and the recorded investment in TDRs before and after their modification | ||
Renewals deemed concession | 1 | |
Reduced or deferred payments | ||
Converted to interest only | ||
Maturity date extensions | 2 | |
Total number of loans | 3 | |
Pre-modification outstanding recorded investment | $ | $ 263 | |
Post-modification outstanding recorded investment | $ | $ 263 | |
Consumer [Member] | Real estate [Member] | ||
Summary of concession at the time of modification and the recorded investment in TDRs before and after their modification | ||
Renewals deemed concession | ||
Reduced or deferred payments | ||
Converted to interest only | 1 | |
Maturity date extensions | ||
Total number of loans | 1 | |
Pre-modification outstanding recorded investment | $ | $ 116 | |
Post-modification outstanding recorded investment | $ | $ 116 | |
Consumer [Member] | Home equity [Member] | ||
Summary of concession at the time of modification and the recorded investment in TDRs before and after their modification | ||
Renewals deemed concession | ||
Reduced or deferred payments | ||
Converted to interest only | ||
Maturity date extensions | ||
Total number of loans | ||
Pre-modification outstanding recorded investment | $ | ||
Post-modification outstanding recorded investment | $ | ||
Consumer [Member] | Construction [Member] | ||
Summary of concession at the time of modification and the recorded investment in TDRs before and after their modification | ||
Renewals deemed concession | ||
Reduced or deferred payments | ||
Converted to interest only | ||
Maturity date extensions | ||
Total number of loans | ||
Pre-modification outstanding recorded investment | $ | ||
Post-modification outstanding recorded investment | $ | ||
Consumer [Member] | Other [Member] | ||
Summary of concession at the time of modification and the recorded investment in TDRs before and after their modification | ||
Renewals deemed concession | 2 | |
Reduced or deferred payments | ||
Converted to interest only | ||
Maturity date extensions | ||
Total number of loans | 2 | |
Pre-modification outstanding recorded investment | $ | $ 126 | |
Post-modification outstanding recorded investment | $ | $ 126 |
Troubled Debt Restructurings 38
Troubled Debt Restructurings (Details 1) | 9 Months Ended | |
Sep. 30, 2015USD ($)Investment | Sep. 30, 2014USD ($)Investment | |
Summary of TDRs past due more than 60 days and subsequently defaulted | ||
Number of loans | ||
Recorded investment | $ | ||
Commercial [Member] | Owner occupied RE [Member] | ||
Summary of TDRs past due more than 60 days and subsequently defaulted | ||
Number of loans | ||
Recorded investment | $ | ||
Commercial [Member] | Non-owner occupied RE [Member] | ||
Summary of TDRs past due more than 60 days and subsequently defaulted | ||
Number of loans | ||
Recorded investment | $ | ||
Commercial [Member] | Construction [Member] | ||
Summary of TDRs past due more than 60 days and subsequently defaulted | ||
Number of loans | ||
Recorded investment | $ | ||
Commercial [Member] | Business [Member] | ||
Summary of TDRs past due more than 60 days and subsequently defaulted | ||
Number of loans | ||
Recorded investment | $ | ||
Consumer [Member] | Construction [Member] | ||
Summary of TDRs past due more than 60 days and subsequently defaulted | ||
Number of loans | ||
Recorded investment | $ | ||
Consumer [Member] | Real estate [Member] | ||
Summary of TDRs past due more than 60 days and subsequently defaulted | ||
Number of loans | ||
Recorded investment | $ | ||
Consumer [Member] | Home equity [Member] | ||
Summary of TDRs past due more than 60 days and subsequently defaulted | ||
Number of loans | ||
Recorded investment | $ | ||
Consumer [Member] | Other [Member] | ||
Summary of TDRs past due more than 60 days and subsequently defaulted | ||
Number of loans | ||
Recorded investment | $ |
Troubled Debt Restructurings 39
Troubled Debt Restructurings (Details Textual) $ in Millions | 9 Months Ended | |
Sep. 30, 2015USD ($)Investment | Dec. 31, 2014USD ($)Investment | |
Troubled Debt Restructurings (Textual) | ||
Total number of loans classified under troubled debt restructurings (TDRs) | 31 | 37 |
Total sum of loans classified as troubled debt restructurings (TDRs) | $ | $ 8.1 | $ 9.7 |
Number of months previous loan payment defaulted | 12 months |
Fair Value Accounting (Details)
Fair Value Accounting (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Securities available for sale: | |||
Mortgage-backed securities | $ 5,800 | ||
Fair Value, Measurements, Recurring [Member] | |||
Securities available for sale: | |||
US Government agencies | $ 12,104 | $ 8,557 | |
SBA securities | 4,983 | 5,154 | |
State and political subdivisions | 19,462 | 16,800 | |
Mortgage-backed securities | 29,797 | 24,513 | |
Total assets measured at fair value on a recurring basis | $ 66,346 | $ 55,024 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Securities available for sale: | |||
US Government agencies | |||
SBA securities | |||
State and political subdivisions | |||
Mortgage-backed securities | |||
Total assets measured at fair value on a recurring basis | |||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Securities available for sale: | |||
US Government agencies | $ 12,104 | $ 8,557 | |
SBA securities | 4,983 | 5,154 | |
State and political subdivisions | 19,462 | 16,800 | |
Mortgage-backed securities | 29,797 | 24,513 | |
Total assets measured at fair value on a recurring basis | $ 66,346 | $ 55,024 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Securities available for sale: | |||
US Government agencies | |||
SBA securities | |||
State and political subdivisions | |||
Mortgage-backed securities | |||
Total assets measured at fair value on a recurring basis |
Fair Value Accounting (Details
Fair Value Accounting (Details 1) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule of assets and liabilities measured on a nonrecurring basis | ||
Impaired loans | $ 10,063 | $ 10,166 |
Other real estate owned | 2,657 | 3,307 |
Total assets measured at fair value on a nonrecurring basis | $ 12,720 | $ 13,473 |
Fair Value, Inputs, Level 1 [Member] | ||
Schedule of assets and liabilities measured on a nonrecurring basis | ||
Impaired loans | ||
Other real estate owned | ||
Total assets measured at fair value on a nonrecurring basis | ||
Fair Value, Inputs, Level 2 [Member] | ||
Schedule of assets and liabilities measured on a nonrecurring basis | ||
Impaired loans | $ 9,604 | $ 9,461 |
Other real estate owned | 2,228 | 3,040 |
Total assets measured at fair value on a nonrecurring basis | 11,832 | 12,501 |
Fair Value, Inputs, Level 3 [Member] | ||
Schedule of assets and liabilities measured on a nonrecurring basis | ||
Impaired loans | 459 | 705 |
Other real estate owned | 429 | 267 |
Total assets measured at fair value on a nonrecurring basis | $ 888 | $ 972 |
Fair Value Accounting (Detail42
Fair Value Accounting (Details 2) | 9 Months Ended |
Sep. 30, 2015 | |
Impaired loans [Member] | |
Schedule of unobservable inputs used in the fair value measurements | |
Valuation Technique | Appraised Value/ Discounted Cash Flows |
Significant Unobservable Inputs | Discounts to appraisals or cash flows for estimated holding and/or selling costs or age of appraisal |
Impaired loans [Member] | Maximum [Member] | |
Schedule of unobservable inputs used in the fair value measurements | |
Range of Inputs | 25.00% |
Impaired loans [Member] | Minimum [Member] | |
Schedule of unobservable inputs used in the fair value measurements | |
Range of Inputs | 0.00% |
Other real estate owned [Member] | |
Schedule of unobservable inputs used in the fair value measurements | |
Valuation Technique | Appraised Value/ Comparable Sales |
Significant Unobservable Inputs | Discounts to appraisals for estimated holding or selling costs |
Other real estate owned [Member] | Maximum [Member] | |
Schedule of unobservable inputs used in the fair value measurements | |
Range of Inputs | 25.00% |
Other real estate owned [Member] | Minimum [Member] | |
Schedule of unobservable inputs used in the fair value measurements | |
Range of Inputs | 0.00% |
Fair Value Accounting (Detail43
Fair Value Accounting (Details 3) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Financial Assets: | ||||
Cash and cash equivalents, Carrying Amount | $ 50,337 | $ 41,264 | $ 58,031 | $ 39,203 |
Other investments, Carrying Amount | 5,532 | 6,522 | ||
Loans held for sale, Carrying Amount | 10,887 | 11,765 | ||
Loans, net, Carrying Amount | 979,865 | 859,694 | ||
Cash and cash equivalents, Fair Value | 50,337 | 41,264 | ||
Other investments, at cost, Fair Value | 5,532 | 6,522 | ||
Loans held for sale, Fair Value | 10,887 | 11,765 | ||
Loans, net, Fair Value | 981,158 | 860,215 | ||
Financial Liabilities: | ||||
Deposits, Carrying Amount | 943,918 | 788,907 | ||
FHLB and other borrowings, Carrying Amount | 115,200 | 135,200 | ||
Junior subordinated debentures, Carrying Amount | 13,403 | 13,403 | ||
Deposits, Fair Value | 896,253 | 748,497 | ||
FHLB and other borrowings, Fair Value | 122,184 | 144,156 | ||
Junior subordinated debentures, Fair Value | 10,671 | 6,823 | ||
Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||||
Financial Assets: | ||||
Cash and cash equivalents, Fair Value | $ 50,337 | $ 41,264 | ||
Other investments, at cost, Fair Value | ||||
Loans held for sale, Fair Value | ||||
Loans, net, Fair Value | ||||
Financial Liabilities: | ||||
Deposits, Fair Value | ||||
FHLB and other borrowings, Fair Value | ||||
Junior subordinated debentures, Fair Value | ||||
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||||
Financial Assets: | ||||
Cash and cash equivalents, Fair Value | ||||
Other investments, at cost, Fair Value | ||||
Loans held for sale, Fair Value | $ 10,887 | $ 11,765 | ||
Loans, net, Fair Value | 9,604 | 9,461 | ||
Financial Liabilities: | ||||
Deposits, Fair Value | 896,253 | 748,497 | ||
FHLB and other borrowings, Fair Value | 122,184 | 144,156 | ||
Junior subordinated debentures, Fair Value | $ 10,671 | $ 6,823 | ||
Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||||
Financial Assets: | ||||
Cash and cash equivalents, Fair Value | ||||
Other investments, at cost, Fair Value | $ 5,532 | $ 6,522 | ||
Loans held for sale, Fair Value | ||||
Loans, net, Fair Value | $ 971,554 | $ 850,754 | ||
Financial Liabilities: | ||||
Deposits, Fair Value | ||||
FHLB and other borrowings, Fair Value | ||||
Junior subordinated debentures, Fair Value |
Fair Value Accounting (Detail44
Fair Value Accounting (Details Textual) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Accounting (Textual) | |
Percentage of loans collateralize by real estate | More than 80 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Numerator: | ||||
Net income | $ 2,727 | $ 1,826 | $ 7,315 | $ 4,643 |
Less: Preferred stock dividend | 253 | 699 | ||
Net income available to common shareholders | $ 2,727 | $ 1,573 | $ 7,315 | $ 3,944 |
Denominator: | ||||
Weighted-average common shares outstanding - basic | 6,238,465 | 4,829,514 | 6,232,536 | 4,775,791 |
Common stock equivalents | 340,983 | 216,973 | 310,360 | 208,762 |
Weighted-average common shares outstanding - diluted | 6,579,448 | 5,046,487 | 6,542,896 | 4,984,553 |
Earnings per common share: | ||||
Basic | $ 0.44 | $ 0.33 | $ 1.17 | $ 0.83 |
Diluted | $ 0.41 | $ 0.31 | $ 1.12 | $ 0.79 |
Earnings Per Common Share (De46
Earnings Per Common Share (Details Textual) - shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Common Share (Textual) | ||
Antidilutive securities excluded from computation of earnings per share, amount | 88,000 | 110,463 |