Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 26, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | SOUTHERN FIRST BANCSHARES INC | |
Entity Central Index Key | 1,090,009 | |
Trading Symbol | SFST | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 7,425,672 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Cash and cash equivalents: | ||
Cash and due from banks | $ 17,198 | $ 17,171 |
Federal funds sold | 62,854 | 49,148 |
Interest-bearing deposits with banks | 29,301 | 25,846 |
Total cash and cash equivalents | 109,353 | 92,165 |
Investment securities: | ||
Investment securities available for sale | 70,067 | 67,603 |
Other investments | 3,059 | 4,462 |
Total investment securities | 73,126 | 72,065 |
Mortgage loans held for sale | 8,075 | 11,790 |
Loans | 1,533,447 | 1,387,070 |
Less allowance for loan losses | (16,100) | (15,523) |
Loans, net | 1,517,347 | 1,371,547 |
Bank owned life insurance | 33,573 | 33,132 |
Property and equipment, net | 32,720 | 32,234 |
Deferred income taxes | 6,069 | 3,782 |
Other assets | 7,521 | 7,910 |
Total assets | 1,787,784 | 1,624,625 |
LIABILITIES | ||
Deposits | 1,567,982 | 1,381,123 |
Federal Home Loan Bank advances and other borrowings | 28,600 | 67,200 |
Junior subordinated debentures | 13,403 | 13,403 |
Other liabilities | 16,943 | 13,213 |
Total liabilities | 1,626,928 | 1,474,939 |
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, 7,425,672 and 7,347,851 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively | 74 | 73 |
Nonvested restricted stock | (853) | (502) |
Additional paid-in capital | 101,691 | 99,986 |
Accumulated other comprehensive loss | (1,365) | (456) |
Retained earnings | 61,309 | 50,585 |
Total shareholders' equity | 160,856 | 149,686 |
Total liabilities and shareholders' equity | $ 1,787,784 | $ 1,624,625 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
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 | 7,425,672 | 7,347,851 |
Common stock, shares outstanding | 7,425,672 | 7,347,851 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Interest income | ||||
Loans | $ 17,591 | $ 14,280 | $ 34,154 | $ 27,806 |
Investment securities | 430 | 390 | 798 | 766 |
Federal funds sold | 514 | 261 | 761 | 318 |
Total interest income | 18,535 | 14,931 | 35,713 | 28,890 |
Interest expense | ||||
Deposits | 3,524 | 1,739 | 6,263 | 2,989 |
Borrowings | 399 | 840 | 797 | 1,942 |
Total interest expense | 3,923 | 2,579 | 7,060 | 4,931 |
Net interest income | 14,612 | 12,352 | 28,653 | 23,959 |
Provision for loan losses | 400 | 500 | 900 | 1,000 |
Net interest income after provision for loan losses | 14,212 | 11,852 | 27,753 | 22,959 |
Noninterest income | ||||
Mortgage banking income | 1,629 | 1,603 | 2,957 | 2,660 |
Service fees on deposit accounts | 256 | 284 | 512 | 561 |
ATM and debit card income | 371 | 290 | 705 | 552 |
Income from bank owned life insurance | 220 | 183 | 441 | 366 |
Other income | 295 | 202 | 577 | 475 |
Total noninterest income | 2,771 | 2,562 | 5,192 | 4,614 |
Noninterest expenses | ||||
Compensation and benefits | 6,365 | 5,524 | 12,208 | 10,798 |
Occupancy | 1,276 | 1,033 | 2,413 | 1,999 |
Outside service and data processing costs | 824 | 823 | 1,560 | 1,568 |
Insurance | 297 | 297 | 610 | 587 |
Professional fees | 457 | 382 | 933 | 695 |
Marketing | 229 | 196 | 438 | 407 |
Other | 531 | 507 | 1,022 | 1,069 |
Total noninterest expenses | 9,979 | 8,762 | 19,184 | 17,123 |
Income before income tax expense | 7,004 | 5,652 | 13,761 | 10,450 |
Income tax expense | 1,494 | 2,048 | 3,037 | 3,734 |
Net income available to common shareholders | $ 5,510 | $ 3,604 | $ 10,724 | $ 6,716 |
Earnings per common share | ||||
Basic | $ 0.75 | $ 0.52 | $ 1.46 | $ 1 |
Diluted | $ 0.71 | $ 0.49 | $ 1.39 | $ 0.95 |
Weighted average common shares outstanding | ||||
Basic | 7,370,709 | 6,986,948 | 7,353,867 | 6,713,608 |
Diluted | 7,751,146 | 7,366,208 | 7,739,082 | 7,099,381 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statements of Comprehensive Income (Loss) [Abstract] | ||||
Net income | $ 5,510 | $ 3,604 | $ 10,724 | $ 6,716 |
Unrealized gain (loss) on securities available for sale: | ||||
Unrealized holding gain (loss) arising during the period, pretax | (234) | 258 | (1,150) | 496 |
Tax (expense) benefit | 51 | (89) | 240 | (170) |
Unrealized holding gain (loss) arising during the period, pretax | (2) | 1 | (2) | |
Tax expense | ||||
Other comprehensive income (loss) | (183) | 167 | (909) | 324 |
Comprehensive income | $ 5,327 | $ 3,771 | $ 9,815 | $ 7,040 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common stock | Preferred stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Retained earnings | Nonvested restricted stock |
Balance at Dec. 31, 2016 | $ 109,872 | $ 65 | $ 73,371 | $ (504) | $ 37,540 | $ (600) | |
Balance, shares at Dec. 31, 2016 | 6,463,789 | ||||||
Net income | 6,716 | 6,716 | |||||
Net issuance of common stock | 24,758 | 24,750 | |||||
Net issuance of common stock, shares | 805,000 | ||||||
Proceeds from exercise of stock options | 416 | $ 8 | 416 | ||||
Proceeds from exercise of stock options, shares | 42,267 | ||||||
Issuance of restricted stock | 146 | (146) | |||||
Issuance of restricted stock, shares | 3,125 | ||||||
Amortization of deferred compensation on restricted stock | 159 | 159 | |||||
Compensation expense related to stock options, net of tax | 491 | 491 | |||||
Other comprehensive income | 324 | 324 | |||||
Balance at Jun. 30, 2017 | 142,736 | $ 73 | 99,174 | (180) | 44,256 | (587) | |
Balance, shares at Jun. 30, 2017 | 7,314,181 | ||||||
Balance at Dec. 31, 2017 | 149,686 | $ 73 | 99,986 | (456) | 50,585 | (502) | |
Balance, shares at Dec. 31, 2017 | 7,347,851 | ||||||
Net income | 10,724 | 10,724 | |||||
Proceeds from exercise of stock options | 638 | $ 1 | 637 | ||||
Proceeds from exercise of stock options, shares | 66,321 | ||||||
Issuance of restricted stock | 501 | (501) | |||||
Issuance of restricted stock, shares | 11,500 | ||||||
Amortization of deferred compensation on restricted stock | 150 | 150 | |||||
Compensation expense related to stock options, net of tax | 567 | 567 | |||||
Other comprehensive income | (909) | (909) | |||||
Balance at Jun. 30, 2018 | $ 160,856 | $ 74 | $ 101,691 | $ (1,365) | $ 61,309 | $ (853) | |
Balance, shares at Jun. 30, 2018 | 7,425,672 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Operating activities | ||
Net income | $ 10,724 | $ 6,716 |
Adjustments to reconcile net income to cash provided by (used for) operating activities: | ||
Provision for loan losses | 900 | 1,000 |
Depreciation and other amortization | 850 | 669 |
Accretion and amortization of securities discounts and premium, net | 220 | 267 |
(Gain) loss on sale of investment securities available for sale | 1 | (2) |
Gain on sale of real estate owned | (7) | (12) |
(Gain) loss on disposal of fixed assets | (8) | 50 |
Write-down of real estate owned | 7 | |
Compensation expense related to stock options and grants | 717 | 650 |
Gain on sale of loans held for sale | (2,620) | (2,854) |
Loans originated and held for sale | (109,193) | (94,159) |
Proceeds from sale of loans held for sale | 115,528 | 93,334 |
Increase in cash surrender value of bank owned life insurance | (441) | (366) |
Increase in deferred tax asset | (2,045) | (392) |
Decrease in other assets, net | 264 | 109 |
Increase in other liabilities | 3,730 | 694 |
Net cash provided by operating activities | 18,620 | 5,711 |
Increase (decrease) in cash realized from: | ||
Origination of loans, net | (146,700) | (136,760) |
Purchase of property and equipment | (1,328) | (4,043) |
Purchase of investment securities: | ||
Available for sale | (13,904) | (20,675) |
Other | (2,596) | (1,811) |
Payments and maturities, calls and repayments of investment securities: | ||
Available for sale | 4,227 | 4,002 |
Other | 3,999 | 3,522 |
Proceeds from sale of investment securities available for sale | 5,841 | |
Proceeds from sale of real estate owned | 132 | 380 |
Net cash used for investing activities | (150,329) | (155,385) |
Increase (decrease) in cash realized from: | ||
Increase in deposits, net | 186,859 | 206,760 |
Decrease in Federal Home Loan Bank advances and other borrowings | (38,600) | (42,000) |
Proceeds from issuance of common stock | 24,758 | |
Proceeds from the exercise of stock options and warrants | 638 | 416 |
Net cash provided by financing activities | 148,897 | 189,934 |
Net increase in cash and cash equivalents | 17,188 | 40,260 |
Cash and cash equivalents at beginning of the period | 92,165 | 46,552 |
Cash and cash equivalents at end of the period | 109,353 | 86,812 |
Cash paid for | ||
Interest | 6,764 | 4,891 |
Income taxes | 1,960 | 3,410 |
Schedule of non-cash transactions | ||
Real estate acquired in settlement of loans | 164 | |
Unrealized gain (loss) on securities, net of income taxes | $ (909) | $ 324 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2018 | |
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 six month periods ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. 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, 2017 as filed with the Securities and Exchange Commission on February 28, 2018. 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. Business Segments In determining proper segment definition, the Company considers the materiality of a potential segment and components of the business about which financial information is available and regularly evaluated, relative to a resource allocation and performance assessment. The Company accounts for intersegment revenues and expenses as if the revenue/expense transactions were generated to third parties, that is, at current market prices. Please refer to “Note 9 – Reportable Segments” for further information on the reporting for the Company’s three business segments. 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. Revenue from Contracts with Customers The Company records revenue from contracts with customers in accordance with Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods. The Company’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of Topic 606. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Our accounting policies will not change materially since the principles of revenue recognition from the Accounting Standards Update are largely consistent with existing guidance and current practices applied by our business. The following is a discussion of revenues within the scope of the new guidance: ● Service fees on deposit accounts ● ATM and debit card income - The Company earns interchange fees from debit cardholder transactions conducted through the payment networks. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. Income Taxes On December 22, 2017, the United States enacted tax reform legislation commonly known as the Tax Cuts and Jobs Act (the “Tax Act”), resulting in significant modifications to existing law. Authoritative guidance and interpretation by regulatory bodies is ongoing, and as such, the accounting for the effects of the Tax Act is not final and the full impact of the new regulation is still being evaluated. The accounting is expected to be complete when the 2017 U.S. corporate income tax return is filed later in 2018. Adoption of New Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU replaces most existing revenue recognition guidance in GAAP. The new standard was effective for the Company on January 1, 2018. Adoption of ASU 2014-09 did not have a material impact on the Company’s consolidated financial statements and related disclosures as the Company’s primary sources of revenues are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of ASU 2014-09. The Company’s revenue recognition pattern for revenue streams within the scope of ASU 2014-09, including but not limited to service charges on deposit accounts and gains/losses on the sale of other real estate owned, did not change significantly from current practice. The standard permits the use of either the full retrospective or modified retrospective transition method. The Company elected to use the modified retrospective transition method which requires application of ASU 2014-09 to uncompleted contracts at the date of adoption however, periods prior to the date of adoption will not be retrospectively revised as the impact of the ASU on uncompleted contracts at the date of adoption was not material. In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). The guidance affects the accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements of financial instruments. ASU 2016-01 was effective for the Company on January 1, 2018 and resulted in the use of an exit price rather than an entrance price to determine the fair value of loans not measured at fair value on a non-recurring basis in the consolidated balance sheets. See Note 7 – Fair Value Accounting for further information regarding the valuation of these loans. In February 2018, the FASB Issued (ASU 2018-02), Income Statement (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which requires companies to reclassify the stranded effects in other comprehensive income to retained earnings as a result of the change in the tax rates under the Tax Cuts and Jobs Act. The Company has opted to early adopt this pronouncement by retrospective application to each period (or periods) in which the effect of the change in the tax rate under the Tax Act is recognized. The impact of the reclassification from other comprehensive income to retained earnings did not have a material effect on the Company’s financial statements. Newly Issued, But Not Yet Effective Accounting Standards In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). The FASB issued this ASU to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet by lessees for those leases classified as operating leases under current U.S. GAAP and disclosing key information about leasing arrangements. The amendments in this ASU are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. Early application of this ASU is permitted for all entities. Adoption of ASU 2016-02 is not expected to have a material impact on the Company’s consolidated financial statements. The Company leases certain properties under operating leases that will result in the recognition of lease assets and lease liabilities on the Company’s balance sheet under the ASU. At June 30, 2018, the Company had contractual future minimum lease commitments of approximately $14.6 million, before considering renewal options that are generally present. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). Among other things, ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to form their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, ASU 2016-13 amends the accounting for credit losses on debt securities and purchased financial assets with credit deterioration. The amendments in ASU 2016-13 are effective for fiscal years beginning after December 31, 2019, and interim periods within those years for public business entities that are SEC filers. Early adoption is permitted for fiscal years, and interim periods within those years, beginning after December 15, 2018, however, the Company does not currently plan to early adopt the ASU. We are evaluating the impact of the ASU on our consolidated financial statements. In addition to our allowance for loan losses, we will also record an allowance for credit losses on debt securities instead of applying the impairment model currently utilized. The amount of the adjustments will be impacted by each portfolio’s composition and credit quality at the adoption date as well as economic conditions and forecasts at that time. In March 2017, the FASB amended the requirement in the Receivables-Nonrefundable Fees and Other Costs Topic of the Accounting Standards Codification related to the amortization period for certain purchased callable debt securities held at a premium. The amendments shorten the amortization period for the premium to the earliest call date. The amendments will be effective for the Company for interim and annual periods beginning after December 15, 2018. The Company does not expect these amendments to have a material effect on its financial statements. In February 2018, the FASB amended the Financial Instruments Topic of the Accounting Standards Codification. The amendments clarify certain aspects of the guidance issued in ASU 2016-01. The amendments will be effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years beginning after June 15, 2018. The Company does not expect these amendments to have a material effect on its financial statements. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2018 | |
Investment Securities [Abstract] | |
Investment Securities | NOTE 2 – Investment Securities The amortized costs and fair value of investment securities are as follows: June 30, 2018 Amortized Gross Unrealized Fair (dollars in thousands) Cost Gains Losses Value Available for sale US government agencies $ 8,987 1 274 8,714 SBA securities 3,904 - 135 3,769 State and political subdivisions 8,530 49 107 8,472 Asset-backed securities 6,703 3 15 6,691 Mortgage-backed securities FHLMC 8,401 - 327 8,074 FNMA 32,089 2 780 31,311 GNMA 3,181 1 146 3,036 Total mortgage-backed securities 43,671 3 1,253 42,421 Total investment securities available for sale $ 71,795 56 1,784 70,067 De cember 31, 2017 Amortized Gross Unrealized Fair Cost Gains Losses Value Available for sale US government agencies $ 8,749 1 97 8,653 SBA securities 4,087 - 24 4,063 State and political subdivisions 11,242 179 25 11,396 Mortgage-backed securities FHLMC 9,102 - 149 8,953 FNMA 29,383 3 386 29,000 GNMA 5,618 2 82 5,538 Total mortgage-backed securities 44,103 5 617 43,491 Total investment securities available for sale $ 68,181 185 763 67,603 During the first six months of 2018, there were $5.8 million of investment securities sold, resulting in a loss on sale of $1,000. During the first six months of 2017, there were $415,000 of investment securities either sold or called, subsequently resulting in a gain on sale of $2,000. Contractual maturities and yields on the Company’s investment securities at June 30, 2018 and December 31, 2017 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. June 30, 2018 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 $ - - 2,641 2.12% 6,073 2.74% - - 8,714 2.55% SBA securities - - - - - - 3,769 2.60% 3,769 2.60% State and political subdivisions - - 514 2.14% 4,514 3.11% 3,444 2.83% 8,472 2.94% Asset-backed securities - - - - - - 6,691 2.89% 6,691 2.89% Mortgage-backed securities 115 0.31% 790 1.94% 12,101 1.86% 29,415 2.53% 42,421 2.40% Total $ 115 0.31% 22,688 December 31, 2017 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 $ 995 1.15% 1,503 2.04% 6,155 2.40% - - 8,653 2.20% SBA securities - - - - - - 4,063 2.45% 4,063 2.45% State and political subdivisions - - 1,163 1.96% 7,162 2.84% 3,071 2.76% 11,396 2.73% Mortgage-backed securities 432 0.99% - - 11,328 1.84% 31,731 2.06% 43,491 1.99% Total $ 1,427 1.10% 2,666 1.59% 24,645 2.27% 38,865 2.15% 67,603 2.17% The tables below summarize gross unrealized losses on investment securities and the fair market value of the related securities at June 30, 2018 and December 31, 2017, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position. June 30, 2018 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 6 $ 5,336 $ 118 3 $ 2,878 $ 156 9 $ 8,214 $ 274 SBA securities 1 2,759 106 1 1,010 29 2 3,769 135 State and political subdivisions 7 4,747 71 2 769 36 9 5,516 107 Asset-backed securities 3 4,851 15 - - - 3 4,851 15 Mortgage-backed securities FHLMC 3 2,610 90 7 5,464 237 10 8,074 327 FNMA 12 14,882 297 16 16,386 483 28 31,268 780 GNMA 1 1,223 59 2 1,792 87 3 3,015 146 Total 33 $ 36,408 $ 756 31 $ 28,299 $ 1,028 64 $ 64,707 $ 1,784 December 31, 2017 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 5 $ 4,184 $ 22 4 $ 3,968 $ 75 9 $ 8,152 $ 97 SBA securities 1 2,936 13 1 1,127 11 2 4,063 24 State and political subdivisions 3 1,214 9 2 792 16 5 2,006 25 Mortgage-backed securities FHLMC 3 2,897 26 7 6,056 123 10 8,953 149 FNMA 11 14,345 135 13 14,597 251 24 28,942 386 GNMA 2 2,270 40 1 971 42 3 3,241 82 Total 25 $ 27,846 $ 245 28 $ 27,511 $ 518 53 $ 55,357 $ 763 At June 30, 2018, the Company had 33 individual investments with a fair market value of $36.4 million that were in an unrealized loss position for less than 12 months and 31 individual investments with a fair market value of $28.3 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) June 30, 2018 December 31, 2017 Federal Home Loan Bank stock $ 2,524 3,754 Investment in Trust Preferred securities 403 403 Other investments 132 305 Total other investments $ 3,059 4,462 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 June 30, 2018 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 June 30, 2018, $4.2 million of securities were pledged as collateral for repurchase agreements from brokers and no securities were pledged to secure client deposits. At December 31, 2017, $7.7 million of securities were pledged as collateral for repurchase agreements from brokers. |
Mortgage Loans Held for Sale
Mortgage Loans Held for Sale | 6 Months Ended |
Jun. 30, 2018 | |
Mortgage Loans Held for Sale [Abstract] | |
Mortgage Loans Held for Sale | NOTE 3 – Mortgage Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are reported as loans held for sale and carried at fair value under the fair value option with changes in fair value recognized in current period earnings. At the date of funding of the mortgage loan held for sale, the funded amount of the loan, the related derivative asset or liability of the associated interest rate lock commitment, less direct loan costs becomes the initial recorded investment in the loan held for sale. Such amount approximates the fair value of the loan. At June 30, 2018, mortgage loans held for sale totaled $8.1 million compared to $11.8 million at December 31, 2017. Mortgage loans held for sale are considered de-recognized, or sold, when the Company surrenders control over the financial assets. Control is considered to have been surrendered when the transferred assets have been isolated from the Company, beyond the reach of the Company and its creditors; the purchaser obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets; and the Company does not maintain effective control over the transferred assets through an agreement that both entitles and obligates the Company to repurchase or redeem the transferred assets before their maturity or the ability to unilaterally cause the holder to return specific assets. Gains and losses from the sale of mortgage loans are recognized based upon the difference between the sales proceeds and carrying value of the related loans upon sale and are recorded in mortgage banking income in the statement of income. Mortgage banking income also includes the gains and losses associated with the loans held for sale and the gains and losses from derivatives. Mortgage loans sold by the Company to investors and which were believed to have met investor and agency underwriting guidelines at the time of sale may be subject to repurchase or indemnification in the event of specific default by the borrower or subsequent discovery that underwriting standards were not met. The Company may, upon mutual agreement, agree to repurchase the loans or indemnify the investor against future losses on such loans. In such cases, the Company bears any subsequent credit loss on the loans. The Company establishes mortgage repurchase reserves related to various representations and warranties that reflect management’s estimate of losses based on a combination of factors. The Company establishes a reserve at the time loans are sold and quarterly updates the reserve estimate during the estimated loan life. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2018 | |
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 $2.7 million as of June 30, 2018 and $2.3 million as of December 31, 2017. June 30, 2018 December 31, 2017 (dollars in thousands) Amount % of Total Amount % of Total Commercial Owner occupied RE $ 358,169 23.4% $ 316,818 22.8% Non-owner occupied RE 355,309 23.2% 312,798 22.6% Construction 73,655 4.8% 51,179 3.7% Business 238,402 15.5% 226,158 16.3% Total commercial loans 1,025,535 66.9% 906,953 65.4% Consumer Real estate 290,433 18.9% 273,050 19.7% Home equity 156,630 10.2% 156,141 11.3% Construction 38,400 2.5% 28,351 2.0% Other 22,449 1.5% 22,575 1.6% Total consumer loans 507,912 33.1% 480,117 34.6% Total gross loans, net of deferred fees 1,533,447 100.0% 1,387,070 100.0% Less—allowance for loan losses (16,100 ) (15,523 ) Total loans, net $ 1,517,347 $ 1,371,547 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. June 30, 2018 After one One year but within After five (dollars in thousands) or less five years years Total Commercial Owner occupied RE $ 27,294 163,994 166,881 358,169 Non-owner occupied RE 37,270 182,889 135,150 355,309 Construction 17,024 21,813 34,818 73,655 Business 66,961 123,166 48,275 238,402 Total commercial loans 148,549 491,862 385,124 1,025,535 Consumer Real estate 32,872 62,050 195,511 290,433 Home equity 9,518 28,079 119,033 156,630 Construction 21,089 882 16,429 38,400 Other 7,584 10,169 4,696 22,449 Total consumer loans 71,063 101,180 335,669 507,912 Total gross loans, net of deferred fees $ 219,612 593,042 720,793 1,533,447 Loans maturing after one year with: Fixed interest rates $ 999,311 Floating interest rates 314,524 December 31, 2017 After one One year but within After five (dollars in thousands) or less five years years Total Commercial Owner occupied RE $ 24,171 167,425 125,222 316,818 Non-owner occupied RE 39,519 165,764 107,515 312,798 Construction 13,086 12,796 25,297 51,179 Business 73,588 107,584 44,986 226,158 Total commercial loans 150,364 453,569 303,020 906,953 Consumer Real estate 30,172 61,809 181,069 273,050 Home equity 13,331 25,807 117,003 156,141 Construction 14,943 1,737 11,671 28,351 Other 7,203 11,371 4,001 22,575 Total consumer 65,649 100,724 313,744 480,117 Total gross loan, net of deferred fees $ 216,013 554,293 616,764 1,387,070 Loans maturing after one year with : Fixed interest rates $ 875,991 Floating interest rates 295,066 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. Credit Quality Indicators Commercial We manage 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. Our risk categories include Pass, Special Mention, Substandard, and Doubtful, each of which is defined by our banking regulatory agencies. Delinquency statistics are also an important indicator of credit quality in the establishment of our allowance for credit losses. We categorize our 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. June 30, 2018 Owner Non-owner (dollars in thousands) occupied RE occupied RE Construction Business Total Pass $ 354,276 349,819 73,655 231,214 1,008,964 Special mention 1,644 1,523 - 3,579 6,746 Substandard 2,249 3,967 - 3,609 9,825 Doubtful - - - - - $ 358,169 355,309 73,655 238,402 1,025,535 December 31, 2017 Owner Non-owner occupied RE occupied RE Construction Business Total Pass $ 312,628 306,965 51,179 215,729 886,501 Special mention 1,770 2,082 - 5,540 9,392 Substandard 2,420 3,751 - 4,889 11,060 Doubtful - - - - - $ 316,818 312,798 51,179 226,158 906,953 The following tables provide past due information for outstanding commercial loans and include loans on nonaccrual status as well as accruing TDRs. June 30, 2018 Owner Non-owner (dollars in thousands) occupied RE occupied RE Construction Business Total Current $ 357,261 354,718 73,655 237,790 1,023,424 30-59 days past due 908 398 - 519 1,825 60-89 days past due - - - - - Greater than 90 Days - 193 - 93 286 $ 358,169 355,309 73,655 238,402 1,025,535 December 31, 2017 Owner Non-owner occupied RE occupied RE Construction Business Total Current $ 316,818 312,477 51,179 224,861 905,335 30-59 days past due - 129 - 416 545 60-89 days past due - - - - - Greater than 90 Days - 192 - 881 1,073 $ 316,818 312,798 51,179 226,158 906,953 As of June 30, 2018 and December 31, 2017, loans 30 days or more past due represented 0.24% and 0.34% of the Company’s total loan portfolio, respectively. Commercial loans 30 days or more past due were 0.14% and 0.11% of the Company’s total loan portfolio as of June 30, 2018 and December 31, 2017, 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. June 30, 2018 (dollars in thousands) Real estate Home equity Construction Other Total Pass $ 286,006 152,806 38,400 22,189 499,401 Special mention 1,558 510 - 197 2,265 Substandard 2,869 3,314 - 63 6,246 Doubtful - - - - - $ 290,433 156,630 38,400 22,449 507,912 December 31, 2017 Real estate Home equity Construction Other Total Pass $ 269,422 152,545 28,351 22,367 472,685 Special mention 715 1,025 - 88 1,828 Substandard 2,913 2,571 - 120 5,604 Doubtful - - - - - $ 273,050 156,141 28,351 22,575 480,117 The following tables provide past due information for outstanding consumer loans and include loans on nonaccrual status as well as accruing TDRs. June 30, 2018 (dollars in thousands) Real estate Home equity Construction Other Total Current $ 289,769 155,704 38,400 22,442 506,315 30-59 days past due 664 - - 2 666 60-89 days past due - 90 - 5 95 Greater than 90 Days - 836 - - 836 $ 290,433 156,630 38,400 22,449 507,912 December 31, 2017 Real estate Home equity Construction Other Total Current $ 271,284 154,821 28,351 22,506 476,962 30-59 days past due 681 325 - 69 1,075 60-89 days past due 131 995 - - 1,126 Greater than 90 Days 954 - - - 954 $ 273,050 156,141 28,351 22,575 480,117 As of June 30, 2018 and December 31, 2017, consumer loans 30 days or more past due were 0.10% and 0.23% of total loans, respectively. 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. Following is a summary of our nonperforming assets, including nonaccruing TDRs. (dollars in thousands) June 30, 2018 December 31, 2017 Commercial Owner occupied RE $ - - Non-owner occupied RE 1,689 1,581 Construction - - Business 94 910 Consumer Real estate 1,174 992 Home equity 1,598 1,144 Construction - - Other - 1 Nonaccruing troubled debt restructurings 3,166 2,673 Total nonaccrual loans, including nonaccruing TDRs 7,721 7,301 Other real estate owned 117 242 Total nonperforming assets $ 7,838 7,543 Nonperforming assets as a percentage of: Total assets 0.44% 0.46% Gross loans 0.51% 0.54% Total loans over 90 days past due 1,122 2,027 Loans over 90 days past due and still accruing - - Accruing troubled debt restructurings $ 7,397 5,145 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. June 30, 2018 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 $ 2,858 2,793 454 74 Non-owner occupied RE 7,304 3,829 2,269 659 Construction - - - - Business 4,076 3,348 2,994 1,397 Total commercial 14,238 9,970 5,717 2,130 Consumer Real estate 2,946 2,867 2,203 1,226 Home equity 2,750 2,117 220 94 Construction - - - - Other 164 164 164 20 Total consumer 5,860 5,148 2,587 1,340 Total $ 20,098 15,118 8,304 3,470 December 31, 2017 Reco rded 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 $ 2,281 2,235 464 179 Non-owner occupied RE 6,827 3,665 2,646 750 Construction - - - - Business 3,735 2,764 1,993 1,061 Total commercial 12,843 8,664 5,103 1,990 Consumer Real estate 2,062 2,037 2,037 1,379 Home equity 2,010 1,575 680 286 Construction - - - - Other 171 170 170 22 Total consumer 4,243 3,782 2,887 1,687 Total $ 17,086 12,446 7,990 3,677 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 June 30, 2018 June 30, 2017 Average Recognized Average Recognized recorded interest recorded interest (dollars in thousands) investment income investment income Commercial Owner occupied RE $ 2,800 45 2,195 26 Non-owner occupied RE 3,878 77 3,620 48 Construction - - - - Business 3,361 57 3,623 54 Total commercial 10,039 179 9,438 128 Consumer Real estate 2,892 40 1,635 16 Home equity 2,135 24 197 1 Construction - - - - Other 165 1 180 1 Total consumer 5,192 65 2,012 18 Total $ 15,231 244 11,450 146 Six months ended Six months ended Year ended June 30, 2018 June 30, 2017 December 31, 2017 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 $ 2,804 62 2,204 53 2,255 104 Non-owner occupied RE 3,920 126 3,721 76 4,144 199 Construction - - - - - - Business 3,380 79 3,635 98 2,823 162 Total commercial 10,104 267 9,560 227 9,222 465 Consumer Real estate 2,911 81 1,642 33 2,047 69 Home equity 2,172 51 198 2 1,576 97 Construction - - - - - - Other 167 3 181 2 174 6 Total consumer 5,250 135 2,021 37 3,797 172 Total $ 15,354 402 11,581 264 13,019 637 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: Three months ended June 30, 2018 Commercial Consumer Owner Non-owner occupied occupied Real Home (dollars in thousands) RE RE Construction Business Estate equity Construction Other Total Balance, beginning of period $ 2,680 3,366 415 3,553 3,391 1,911 256 280 15,852 Provision for loan losses 19 342 129 280 54 (438 ) 26 (12 ) 400 Loan charge-offs - (234 ) - - - (77 ) - - (311 ) Loan recoveries - 107 - 16 1 35 - - 159 Net loan charge-offs - (127 ) - 16 1 (42 ) - - (152 ) Balance, end of period $ 2,699 3,581 544 3,849 3,446 1,431 282 268 16,100 Net charge-offs to average loans (annualized) 0.04% Allowance for loan losses to gross loans 1.05% Allowance for loan losses to nonperforming loans 208.52% Three months ended June 30, 2017 Commercial Consumer Owner Non-owner occupied occupied Real Home (dollars in thousands) RE RE Construction Business Estate equity Construction Other Total Balance, beginning of period $ 3,052 2,967 334 3,823 2,830 1,619 289 373 15,287 Provision for loan losses (88 ) 255 16 139 240 (23 ) 39 (78 ) 500 Loan charge-offs - (253 ) - (120 ) - - - - (373 ) Loan recoveries - 12 - 15 (9 ) 12 - - 30 Net loan charge-offs - (241 ) - (105 ) (9 ) 12 - - (343 ) Balance, end of period $ 2,964 2,981 350 3,857 3,061 1,608 328 295 15,444 Net charge-offs to average loans (annualized) 0.11 % Allowance for loan losses to gross loans 1.19 % Allowance for loan losses to nonperforming loans 293.75 % Six months ended June 30, 2018 Commercial Consumer Owner Non-owner occupied occupied Real Home (dollars in thousands) RE RE Construction Business Estate equity Construction Other Total Balance, beginning of period $ 2,534 3,230 325 3,848 3,495 1,600 210 281 15,523 Provision for loan losses 165 478 219 (14 ) 25 (64 ) 72 19 900 Loan charge-offs - (234 ) - (119 ) (77 ) (140 ) - (34 ) (604 ) Loan recoveries - 107 - 134 3 35 - 2 281 Net loan charge-offs - (127 ) - 15 (74 ) (105 ) - (32 ) (323 ) Balance, end of period $ 2,699 3,581 544 3,849 3,446 1,431 282 268 16,100 Net charge-offs to average loans (annualized) 0.04 % Six months ended June 30, 2017 Commercial Consumer Owner Non-owner occupied occupied Real Home RE RE Construction Business Estate equity Construction Other Total Balance, beginning of period $ 2,843 2,778 295 4,123 2,780 1,475 252 309 14,855 Provision for loan losses 121 623 55 (182 ) 200 121 76 (14 ) 1,000 Loan charge-offs - (433 ) - (130 ) - - - - (563 ) Loan recoveries - 13 - 46 81 12 - - 152 Net loan charge-offs - (420 ) - (84 ) 81 12 - - (411 ) Balance, end of period $ 2,964 2,981 350 3,857 3,061 1,608 328 295 15,444 Net charge-offs to average loans (annualized) 0.03 % The following table disaggregates the allowance for loan losses and recorded investment in loans by impairment methodology. June 30, 2018 Allowance for loan losses Recorded investment in loans (dollars in thousands) Commercial Consumer Total Commercial Consumer Total Individually evaluated $ 2,130 1,340 3,470 9,970 5,148 15,118 Collectively evaluated 8,543 4,087 12,630 1,015,565 502,764 1,518,329 Total $ 10,673 5,427 16,100 1,025,535 507,912 1,533,447 December 31, 2017 Allowance for loan losses Recorded investment in loans Commercial Consumer Total Commercial Consumer Total Individually evaluated $ 1,990 1,687 3,677 8,664 3,782 12,446 Collectively evaluated 7,947 3,899 11,846 898,289 476,335 1,374,624 Total $ 9,937 5,586 15,523 906,953 480,117 1,387,070 |
Troubled Debt Restructurings
Troubled Debt Restructurings | 6 Months Ended |
Jun. 30, 2018 | |
Troubled Debt Restructurings [Abstract] | |
Troubled Debt Restructurings | NOTE 5 – Troubled Debt Restructurings At June 30, 2018, the Company had 28 loans totaling $10.6 million compared to 21 loans totaling $7.8 million at December 31, 2017, 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 four 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. For the six months ended June 30, 2018 Pre- Post- modification modification Renewals Reduced Converted Maturity Total outstanding outstanding deemed a or deferred to interest date Number recorded recorded (dollars in thousands) concession payments only extensions of loans investment investment Commercial Owner occupied RE 1 - - - 1 $ 506 $ 592 Business 4 - - - 4 1,207 1,532 Consumer Real estate 2 - - - 2 549 669 Home equity - 1 - - 1 180 180 Total loans 7 1 - - 8 $ 2,442 $ 2,973 For the six months ended June 30, 2017 Pre- Post- modification modification Renewals Reduced Converted Maturity Total outstanding outstanding deemed a or deferred to interest date Number recorded recorded concession payments only extensions of loans investment investment Commercial Business 1 1 - - 2 $ 378 $ 387 Total loans 1 1 - - 2 $ 378 $ 387 As of June 30, 2018 and 2017, there were no loans modified as TDRs for which there was a payment default (60 days past due) within 12 months of the restructuring date. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Financial Instruments [Abstract] | |
Derivative Financial Instruments | NOTE 6 – Derivative Financial Instruments The Company utilizes derivative financial instruments primarily to hedge its exposure to changes in interest rates. All derivative financial instruments are recognized as either assets or liabilities and measured at fair value. The Company accounts for all of its derivatives as free-standing derivatives and does not designate any of these instruments for hedge accounting. Therefore, the gain or loss resulting from the change in the fair value of the derivative is recognized in the Company’s statement of income during the period of change. The Company enters into commitments to originate residential mortgage loans held for sale, at specified interest rates and within a specified period of time, with clients who have applied for a loan and meet certain credit and underwriting criteria (interest rate lock commitments). These interest rate lock commitments (“IRLCs”) meet the definition of a derivative financial instrument and are reflected in the balance sheet at fair value with changes in fair value recognized in current period earnings. Unrealized gains and losses on the IRLCs are recorded as derivative assets and derivative liabilities, respectively, and are measured based on the value of the underlying mortgage loan, quoted mortgage-backed securities (“MBS”) prices and an estimate of the probability that the mortgage loan will fund within the terms of the interest rate lock commitment, net of estimated commission expenses. The Company manages the interest rate and price risk associated with its outstanding IRLCs and mortgage loans held for sale by entering into derivative instruments such as forward sales of MBS. Management expects these derivatives will experience changes in fair value opposite to changes in fair value of the IRLCs and mortgage loans held for sale, thereby reducing earnings volatility. The Company takes into account various factors and strategies in determining the portion of the mortgage pipeline (IRLCs and mortgage loans held for sale) it wants to economically hedge. The following table summarizes the Company’s outstanding financial derivative instruments at June 30, 2018 and December 31, 2017. June 30, 2018 Fair Value (dollars in thousands) Notional Balance Sheet Location Asset/(Liability) Mortgage loan interest rate lock commitments $ 25,463 Other assets $ 320 MBS forward sales commitments 16,500 Other liabilities (60 ) Total derivative financial instruments $ 41,963 $ 260 December 31, 2017 Fair Value Notional Balance Sheet Location Asset/(Liability) Mortgage loan interest rate lock commitments $ 15,430 Other assets $ 196 MBS forward sales commitments 10,750 Other liabilities (28 ) Total derivative financial instruments $ 26,180 $ 168 |
Fair Value Accounting
Fair Value Accounting | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Accounting [Abstract] | |
Fair Value Accounting | NOTE 7 – 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. The methods of determining the fair value of assets and liabilities presented in this note are consistent with our methodologies disclosed in Note 13 of the Company’s 2017 Form 10-K, except for the valuation of loans held for investment which was impacted by the adoption of ASU 2016-01. Prior to adopting the amendments included in the standard, the Company was allowed to measure fair value under an entry price notion. The entry price notion previously applied by the Company used a discounted cash flows technique to calculate the present value of expected future cash flows for a financial instrument. The exit price notion uses the same approach, but also incorporates other factors, such as enhanced credit risk, illiquidity risk and market factors that sometimes exist in exit prices in dislocated markets. As of June 30, 2018, the technique used by the Company to estimate the exit price of the loan portfolio consists of similar procedures to those used as of December 31, 2017, but with added emphasis on both illiquidity risk and credit risk not captured by the previously applied entry price notion. This credit risk assumption is intended to approximate the fair value that a market participant would realize in a hypothetical orderly transaction. The Company’s loan portfolio is initially fair valued using a segmented approach, using the eight categories as disclosed in Note 4 – Loans and Allowance for Loan Losses. Loans are considered a Level 2 and Level 3 classification. 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 June 30, 2018 and December 31, 2017. June 30, 2018 (dollars in thousands) Level 1 Level 2 Level 3 Total Assets Securities available for sale US government agencies $ - 8,714 - 8,714 SBA securities - 3,769 - 3,769 State and political subdivisions - 8,472 - 8,472 Asset-backed securities - 6,691 - 6,691 Mortgage-backed securities - 42,421 - 42,421 Mortgage loans held for sale - 8,075 - 8,075 Interest rate lock commitments - 320 - 320 Total assets measured at fair value on a recurring basis $ - 78,462 - 78,462 Liabilities MBS forward sales commitments $ - 60 - 60 Total liabilities measured at fair value on a recurring basis $ - 60 - 60 December 31, 2017 Level 1 Level 2 Level 3 Total Assets Securities available for sale: US government agencies $ - 8,653 - 8,653 SBA securities - 4,063 - 4,063 State and political subdivisions - 11,396 - 11,396 Mortgage-backed securities - 43,491 - 43,491 Mortgage loans held for sale - 11,790 - 11,790 Interest rate lock commitments - 196 - 196 Total assets measured at fair value on a recurring basis $ - 79,589 - 79,589 Liabilities MBS forward sales commitments $ - 28 - 28 Total liabilities measured at fair value on a recurring basis $ - 28 - 28 Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis The tables below present the recorded amount of assets and liabilities measured at fair value on a nonrecurring basis as of June 30, 2018 and December 31, 2017. As of June 30, 2018 (dollars in thousands) Level 1 Level 2 Level 3 Total Assets Impaired loans $ - 2,920 8,728 11,648 Other real estate owned - 23 94 117 Total assets measured at fair value on a nonrecurring basis $ - 2,943 8,822 11,765 As of December 31, 2017 Level 1 Level 2 Level 3 Total Assets Impaired loans $ - 2,685 6,084 8,769 Other real estate owned - 148 94 242 Total assets measured at fair value on a nonrecurring basis $ - 2,833 6,178 9,011 The Company had no liabilities carried at fair value or measured at fair value on a nonrecurring basis. Impaired 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. 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 Company 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. The Company reviews the third party appraisal for appropriateness and adjusts the value downward to consider selling and closing costs, which typically range from 7% - 10% of the appraised value. For non-real estate loans, fair value of the of the impaired loan’s collateral may be determined using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business. 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. The unobservable inputs may vary depending on the individual assets and valuation approach. The Company reviews the third party appraisal for appropriateness and adjusts the value downward to consider selling and closing costs, which typically range from 7% to 10% of the appraised value. 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. 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 estimated fair values of the Company’s financial instruments at June 30, 2018 and December 31, 2017 are as follows: June 30, 2018 Carrying Fair (dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets: Other investments, at cost $ 3,059 3,059 - - 3,059 Loans 1 1,502,229 1,483,215 - - 1,483,215 Financial Liabilities: Deposits 1,567,982 1,430,788 - 1,430,788 - FHLB and other borrowings 28,600 28,792 - 28,792 - Junior subordinated debentures 13,403 14,148 - 14,148 - December 31, 2017 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial Assets: Other investments, at cost $ 4,462 4,462 - - 4,462 Loans 1 1,359,101 1,363,915 - - 1,363,915 Financial Liabilities: Deposits 1,381,123 1,269,462 - 1,269,462 - FHLB and other borrowings 67,200 67,890 - 67,890 - Junior subordinated debentures 13,403 13,166 - 13,166 - 1 Carrying amount is net of the allowance for loan losses and previously presented impaired loans. In accordance with the prospective adoption of ASU No. 2016-01, the fair value of loans as of June 30, 2018 was measured using an exit price notion. The fair value of loans as of December 31, 2017 was measured using an entry price notion. |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Common Share [Abstract] | |
Earnings Per Common Share | NOTE 8 – 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 six months ended June 30, 2018 and 2017. Dilutive common shares arise from the potentially dilutive effect of the Company’s stock options that were outstanding at June 30, 2018. The assumed conversion of stock options can create a difference between basic and dilutive net income per common share. At June 30, 2018 and 2017, there were 166,172 and 120,681 options, respectively, that were not considered in computing diluted earnings per common share because they were anti-dilutive. Three months ended Six months ended June 30, June 30, (dollars in thousands, except share data) 2018 2017 2018 2017 Numerator: Net income available to common shareholders $ 5,510 3,604 10,724 6,716 Denominator: Weighted-average common shares outstanding – basic 7,370,709 6,986,948 7,353,867 6,713,608 Common stock equivalents 380,437 379,260 385,215 385,773 Weighted-average common shares outstanding – diluted 7,751,146 7,366,208 7,739,082 7,099,381 Earnings per common share: Basic $ 0.75 0.52 1.46 1.00 Diluted $ 0.71 0.49 1.39 0.95 |
Reportable Segments
Reportable Segments | 6 Months Ended |
Jun. 30, 2018 | |
Reportable Segments [Abstract] | |
Reportable Segments | NOTE 9 – Reportable Segments The Company’s reportable segments represent the distinct product lines the Company offers and are viewed separately for strategic planning purposes by management. The three segments include Commercial and Retail Banking, Mortgage Banking, and Corporate. The following schedule presents financial information for each reportable segment. (dollars in thousands) Three months ended Three months ended June 30, 2018 June 30, 2017 Commercial Commercial and Retail Mortgage and Retail Mortgage Banking Banking Corporate Eliminations Consolidated Banking Banking Corporate Elimination Consolidated Interest income $ 18,437 98 2 (2 ) 18,535 $ 14,851 80 6 (6 ) 14,931 Interest expense 3,762 - 163 (2 ) 3,923 2,442 - 143 (6 ) 2,579 Net interest income (loss) 14,675 98 (161 ) - 14,612 12,409 80 (137 ) - 12,352 Provision for loan losses 400 - - - 400 500 - - - 500 Noninterest income 1,142 1,629 - - 2,771 959 1,603 - - 2,562 Noninterest expense 8,754 1,165 60 - 9,979 7,667 1,035 60 - 8,762 Net income (loss) before taxes 6,663 562 (221 ) - 7,004 5,201 648 (197 ) - 5,652 Income tax provision (benefit) 1,422 118 (46 ) - 1,494 1,877 240 (69 ) - 2,048 Net income (loss) $ 5,241 444 (175 ) - 5,510 $ 3,324 408 (128 ) - 3,604 Total assets $ 1,777,952 9,404 174,331 (173,903 ) 1,787,784 $ 1,527,837 10,958 156,145 (155,714 ) 1,539,226 (dollars in thousands) Six months ended Six months ended June 30, 2018 June 30, 2017 Commercial Commercial and Retail Mortgage and Retail Mortgage Banking Banking Corporate Eliminations Consolidated Banking Banking Corporate Eliminations Consolidated Interest income $ 35,515 198 4 (4 ) 35,713 $ 28,744 146 8 (8 ) 28,890 Interest expense 6,782 - 282 (4 ) 7,060 4,665 - 274 (8 ) 4,931 Net interest income (loss) 28,733 198 (278 ) - 28,653 24,079 146 (266 ) - 23,959 Provision for loan losses 900 - - - 900 1,000 - - - 1,000 Noninterest income 2,235 2,957 - - 5,192 1,954 2,660 - - 4,614 Noninterest expense 16,935 2,129 120 - 19,184 15,114 1,883 126 - 17,123 Net income before taxes 13,133 1,026 (398 ) - 13,761 9,919 923 (392 ) - 10,450 Income tax provision (benefit) 2,906 215 (84 ) - 3,037 3,530 342 (138 ) - 3,734 Net income (loss) $ 10,227 811 (314 ) - 10,724 $ 6,389 581 (254 ) - 6,716 Total assets $ 1,777,952 9,404 174,331 (173,903 ) 1,787,784 $ 1,527,837 10,958 156,145 (155,714 ) 1,539,226 Commercial and retail banking. The Company’s primary business is to provide traditional deposit and lending products and services to its commercial and retail banking clients. Mortgage banking. The mortgage banking segment provides mortgage loan origination services for loans that will be sold in the secondary market to investors. Corporate. Corporate is comprised primarily of compensation and benefits for certain members of management and interest on parent company debt. |
Nature of Business and Basis 17
Nature of Business and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
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 six month periods ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. 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, 2017 as filed with the Securities and Exchange Commission on February 28, 2018. 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. |
Business Segments | Business Segments In determining proper segment definition, the Company considers the materiality of a potential segment and components of the business about which financial information is available and regularly evaluated, relative to a resource allocation and performance assessment. The Company accounts for intersegment revenues and expenses as if the revenue/expense transactions were generated to third parties, that is, at current market prices. Please refer to “Note 9 – Reportable Segments” for further information on the reporting for the Company’s three business segments. |
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. |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The Company records revenue from contracts with customers in accordance with Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods. The Company’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of Topic 606. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Our accounting policies will not change materially since the principles of revenue recognition from the Accounting Standards Update are largely consistent with existing guidance and current practices applied by our business. The following is a discussion of revenues within the scope of the new guidance: ● Service fees on deposit accounts ● ATM and debit card income - The Company earns interchange fees from debit cardholder transactions conducted through the payment networks. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. |
Income Taxes | Income Taxes On December 22, 2017, the United States enacted tax reform legislation commonly known as the Tax Cuts and Jobs Act (the “Tax Act”), resulting in significant modifications to existing law. Authoritative guidance and interpretation by regulatory bodies is ongoing, and as such, the accounting for the effects of the Tax Act is not final and the full impact of the new regulation is still being evaluated. The accounting is expected to be complete when the 2017 U.S. corporate income tax return is filed later in 2018. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU replaces most existing revenue recognition guidance in GAAP. The new standard was effective for the Company on January 1, 2018. Adoption of ASU 2014-09 did not have a material impact on the Company’s consolidated financial statements and related disclosures as the Company’s primary sources of revenues are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of ASU 2014-09. The Company’s revenue recognition pattern for revenue streams within the scope of ASU 2014-09, including but not limited to service charges on deposit accounts and gains/losses on the sale of other real estate owned, did not change significantly from current practice. The standard permits the use of either the full retrospective or modified retrospective transition method. The Company elected to use the modified retrospective transition method which requires application of ASU 2014-09 to uncompleted contracts at the date of adoption however, periods prior to the date of adoption will not be retrospectively revised as the impact of the ASU on uncompleted contracts at the date of adoption was not material. In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). The guidance affects the accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements of financial instruments. ASU 2016-01 was effective for the Company on January 1, 2018 and resulted in the use of an exit price rather than an entrance price to determine the fair value of loans not measured at fair value on a non-recurring basis in the consolidated balance sheets. See Note 7 – Fair Value Accounting for further information regarding the valuation of these loans. In February 2018, the FASB Issued (ASU 2018-02), Income Statement (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which requires companies to reclassify the stranded effects in other comprehensive income to retained earnings as a result of the change in the tax rates under the Tax Cuts and Jobs Act. The Company has opted to early adopt this pronouncement by retrospective application to each period (or periods) in which the effect of the change in the tax rate under the Tax Act is recognized. The impact of the reclassification from other comprehensive income to retained earnings did not have a material effect on the Company’s financial statements. |
Newly Issued, But Not Yet Effective Accounting Standards | Newly Issued, But Not Yet Effective Accounting Standards In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). The FASB issued this ASU to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet by lessees for those leases classified as operating leases under current U.S. GAAP and disclosing key information about leasing arrangements. The amendments in this ASU are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. Early application of this ASU is permitted for all entities. Adoption of ASU 2016-02 is not expected to have a material impact on the Company’s consolidated financial statements. The Company leases certain properties under operating leases that will result in the recognition of lease assets and lease liabilities on the Company’s balance sheet under the ASU. At June 30, 2018, the Company had contractual future minimum lease commitments of approximately $14.6 million, before considering renewal options that are generally present. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). Among other things, ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to form their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, ASU 2016-13 amends the accounting for credit losses on debt securities and purchased financial assets with credit deterioration. The amendments in ASU 2016-13 are effective for fiscal years beginning after December 31, 2019, and interim periods within those years for public business entities that are SEC filers. Early adoption is permitted for fiscal years, and interim periods within those years, beginning after December 15, 2018, however, the Company does not currently plan to early adopt the ASU. We are evaluating the impact of the ASU on our consolidated financial statements. In addition to our allowance for loan losses, we will also record an allowance for credit losses on debt securities instead of applying the impairment model currently utilized. The amount of the adjustments will be impacted by each portfolio’s composition and credit quality at the adoption date as well as economic conditions and forecasts at that time. In March 2017, the FASB amended the requirement in the Receivables-Nonrefundable Fees and Other Costs Topic of the Accounting Standards Codification related to the amortization period for certain purchased callable debt securities held at a premium. The amendments shorten the amortization period for the premium to the earliest call date. The amendments will be effective for the Company for interim and annual periods beginning after December 15, 2018. The Company does not expect these amendments to have a material effect on its financial statements. In February 2018, the FASB amended the Financial Instruments Topic of the Accounting Standards Codification. The amendments clarify certain aspects of the guidance issued in ASU 2016-01. The amendments will be effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years beginning after June 15, 2018. The Company does not expect these amendments to have a material effect on its financial statements. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investment Securities [Abstract] | |
Summary of amortized costs and fair value of investment securities | June 30, 2018 Amortized Gross Unrealized Fair (dollars in thousands) Cost Gains Losses Value Available for sale US government agencies $ 8,987 1 274 8,714 SBA securities 3,904 - 135 3,769 State and political subdivisions 8,530 49 107 8,472 Asset-backed securities 6,703 3 15 6,691 Mortgage-backed securities FHLMC 8,401 - 327 8,074 FNMA 32,089 2 780 31,311 GNMA 3,181 1 146 3,036 Total mortgage-backed securities 43,671 3 1,253 42,421 Total investment securities available for sale $ 71,795 56 1,784 70,067 De cember 31, 2017 Amortized Gross Unrealized Fair Cost Gains Losses Value Available for sale US government agencies $ 8,749 1 97 8,653 SBA securities 4,087 - 24 4,063 State and political subdivisions 11,242 179 25 11,396 Mortgage-backed securities FHLMC 9,102 - 149 8,953 FNMA 29,383 3 386 29,000 GNMA 5,618 2 82 5,538 Total mortgage-backed securities 44,103 5 617 43,491 Total investment securities available for sale $ 68,181 185 763 67,603 |
Summary of fair values investment securities available for contractual maturities | June 30, 2018 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 $ - - 2,641 2.12% 6,073 2.74% - - 8,714 2.55% SBA securities - - - - - - 3,769 2.60% 3,769 2.60% State and political subdivisions - - 514 2.14% 4,514 3.11% 3,444 2.83% 8,472 2.94% Asset-backed securities - - - - - - 6,691 2.89% 6,691 2.89% Mortgage-backed securities 115 0.31% 790 1.94% 12,101 1.86% 29,415 2.53% 42,421 2.40% Total $ 115 0.31% 22,688 December 31, 2017 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 $ 995 1.15% 1,503 2.04% 6,155 2.40% - - 8,653 2.20% SBA securities - - - - - - 4,063 2.45% 4,063 2.45% State and political subdivisions - - 1,163 1.96% 7,162 2.84% 3,071 2.76% 11,396 2.73% Mortgage-backed securities 432 0.99% - - 11,328 1.84% 31,731 2.06% 43,491 1.99% Total $ 1,427 1.10% 2,666 1.59% 24,645 2.27% 38,865 2.15% 67,603 2.17% |
Summary of gross unrealized losses on investment securities and fair market value of related securities | June 30, 2018 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 6 $ 5,336 $ 118 3 $ 2,878 $ 156 9 $ 8,214 $ 274 SBA securities 1 2,759 106 1 1,010 29 2 3,769 135 State and political subdivisions 7 4,747 71 2 769 36 9 5,516 107 Asset-backed securities 3 4,851 15 - - - 3 4,851 15 Mortgage-backed securities FHLMC 3 2,610 90 7 5,464 237 10 8,074 327 FNMA 12 14,882 297 16 16,386 483 28 31,268 780 GNMA 1 1,223 59 2 1,792 87 3 3,015 146 Total 33 $ 36,408 $ 756 31 $ 28,299 $ 1,028 64 $ 64,707 $ 1,784 December 31, 2017 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 5 $ 4,184 $ 22 4 $ 3,968 $ 75 9 $ 8,152 $ 97 SBA securities 1 2,936 13 1 1,127 11 2 4,063 24 State and political subdivisions 3 1,214 9 2 792 16 5 2,006 25 Mortgage-backed securities FHLMC 3 2,897 26 7 6,056 123 10 8,953 149 FNMA 11 14,345 135 13 14,597 251 24 28,942 386 GNMA 2 2,270 40 1 971 42 3 3,241 82 Total 25 $ 27,846 $ 245 28 $ 27,511 $ 518 53 $ 55,357 $ 763 |
Summary of other investments | (dollars in thousands) June 30, 2018 December 31, 2017 Federal Home Loan Bank stock $ 2,524 3,754 Investment in Trust Preferred securities 403 403 Other investments 132 305 Total other investments $ 3,059 4,462 |
Loans and Allowance for Loan 19
Loans and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Summary of composition of loan portfolio | June 30, 2018 December 31, 2017 (dollars in thousands) Amount % of Total Amount % of Total Commercial Owner occupied RE $ 358,169 23.4% $ 316,818 22.8% Non-owner occupied RE 355,309 23.2% 312,798 22.6% Construction 73,655 4.8% 51,179 3.7% Business 238,402 15.5% 226,158 16.3% Total commercial loans 1,025,535 66.9% 906,953 65.4% Consumer Real estate 290,433 18.9% 273,050 19.7% Home equity 156,630 10.2% 156,141 11.3% Construction 38,400 2.5% 28,351 2.0% Other 22,449 1.5% 22,575 1.6% Total consumer loans 507,912 33.1% 480,117 34.6% Total gross loans, net of deferred fees 1,533,447 100.0% 1,387,070 100.0% Less—allowance for loan losses (16,100 ) (15,523 ) Total loans, net $ 1,517,347 $ 1,371,547 |
Summary of loan maturity distribution by type and related interest rate | June 30, 2018 After one One year but within After five (dollars in thousands) or less five years years Total Commercial Owner occupied RE $ 27,294 163,994 166,881 358,169 Non-owner occupied RE 37,270 182,889 135,150 355,309 Construction 17,024 21,813 34,818 73,655 Business 66,961 123,166 48,275 238,402 Total commercial loans 148,549 491,862 385,124 1,025,535 Consumer Real estate 32,872 62,050 195,511 290,433 Home equity 9,518 28,079 119,033 156,630 Construction 21,089 882 16,429 38,400 Other 7,584 10,169 4,696 22,449 Total consumer loans 71,063 101,180 335,669 507,912 Total gross loans, net of deferred fees $ 219,612 593,042 720,793 1,533,447 Loans maturing after one year with: Fixed interest rates $ 999,311 Floating interest rates 314,524 December 31, 2017 After one One year but within After five (dollars in thousands) or less five years years Total Commercial Owner occupied RE $ 24,171 167,425 125,222 316,818 Non-owner occupied RE 39,519 165,764 107,515 312,798 Construction 13,086 12,796 25,297 51,179 Business 73,588 107,584 44,986 226,158 Total commercial loans 150,364 453,569 303,020 906,953 Consumer Real estate 30,172 61,809 181,069 273,050 Home equity 13,331 25,807 117,003 156,141 Construction 14,943 1,737 11,671 28,351 Other 7,203 11,371 4,001 22,575 Total consumer 65,649 100,724 313,744 480,117 Total gross loan, net of deferred fees $ 216,013 554,293 616,764 1,387,070 Loans maturing after one year with : Fixed interest rates $ 875,991 Floating interest rates 295,066 |
Summary of nonperforming assets, including nonaccruing TDRs | (dollars in thousands) June 30, 2018 December 31, 2017 Commercial Owner occupied RE $ - - Non-owner occupied RE 1,689 1,581 Construction - - Business 94 910 Consumer Real estate 1,174 992 Home equity 1,598 1,144 Construction - - Other - 1 Nonaccruing troubled debt restructurings 3,166 2,673 Total nonaccrual loans, including nonaccruing TDRs 7,721 7,301 Other real estate owned 117 242 Total nonperforming assets $ 7,838 7,543 Nonperforming assets as a percentage of: Total assets 0.44% 0.46% Gross loans 0.51% 0.54% Total loans over 90 days past due 1,122 2,027 Loans over 90 days past due and still accruing - - Accruing troubled debt restructurings $ 7,397 5,145 |
Summary of key information for impaired loans | June 30, 2018 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 $ 2,858 2,793 454 74 Non-owner occupied RE 7,304 3,829 2,269 659 Construction - - - - Business 4,076 3,348 2,994 1,397 Total commercial 14,238 9,970 5,717 2,130 Consumer Real estate 2,946 2,867 2,203 1,226 Home equity 2,750 2,117 220 94 Construction - - - - Other 164 164 164 20 Total consumer 5,860 5,148 2,587 1,340 Total $ 20,098 15,118 8,304 3,470 December 31, 2017 Reco rded 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 $ 2,281 2,235 464 179 Non-owner occupied RE 6,827 3,665 2,646 750 Construction - - - - Business 3,735 2,764 1,993 1,061 Total commercial 12,843 8,664 5,103 1,990 Consumer Real estate 2,062 2,037 2,037 1,379 Home equity 2,010 1,575 680 286 Construction - - - - Other 171 170 170 22 Total consumer 4,243 3,782 2,887 1,687 Total $ 17,086 12,446 7,990 3,677 |
Summary of average recorded investment and interest income recognized on impaired loans | Three months ended Three months ended June 30, 2018 June 30, 2017 Average Recognized Average Recognized recorded interest recorded interest (dollars in thousands) investment income investment income Commercial Owner occupied RE $ 2,800 45 2,195 26 Non-owner occupied RE 3,878 77 3,620 48 Construction - - - - Business 3,361 57 3,623 54 Total commercial 10,039 179 9,438 128 Consumer Real estate 2,892 40 1,635 16 Home equity 2,135 24 197 1 Construction - - - - Other 165 1 180 1 Total consumer 5,192 65 2,012 18 Total $ 15,231 244 11,450 146 Six months ended Six months ended Year ended June 30, 2018 June 30, 2017 December 31, 2017 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 $ 2,804 62 2,204 53 2,255 104 Non-owner occupied RE 3,920 126 3,721 76 4,144 199 Construction - - - - - - Business 3,380 79 3,635 98 2,823 162 Total commercial 10,104 267 9,560 227 9,222 465 Consumer Real estate 2,911 81 1,642 33 2,047 69 Home equity 2,172 51 198 2 1,576 97 Construction - - - - - - Other 167 3 181 2 174 6 Total consumer 5,250 135 2,021 37 3,797 172 Total $ 15,354 402 11,581 264 13,019 637 |
Summary of allowance for loan losses by commercial and consumer portfolio segments | Three months ended June 30, 2018 Commercial Consumer Owner Non-owner occupied occupied Real Home (dollars in thousands) RE RE Construction Business Estate equity Construction Other Total Balance, beginning of period $ 2,680 3,366 415 3,553 3,391 1,911 256 280 15,852 Provision for loan losses 19 342 129 280 54 (438 ) 26 (12 ) 400 Loan charge-offs - (234 ) - - - (77 ) - - (311 ) Loan recoveries - 107 - 16 1 35 - - 159 Net loan charge-offs - (127 ) - 16 1 (42 ) - - (152 ) Balance, end of period $ 2,699 3,581 544 3,849 3,446 1,431 282 268 16,100 Net charge-offs to average loans (annualized) 0.04% Allowance for loan losses to gross loans 1.05% Allowance for loan losses to nonperforming loans 208.52% Three months ended June 30, 2017 Commercial Consumer Owner Non-owner occupied occupied Real Home (dollars in thousands) RE RE Construction Business Estate equity Construction Other Total Balance, beginning of period $ 3,052 2,967 334 3,823 2,830 1,619 289 373 15,287 Provision for loan losses (88 ) 255 16 139 240 (23 ) 39 (78 ) 500 Loan charge-offs - (253 ) - (120 ) - - - - (373 ) Loan recoveries - 12 - 15 (9 ) 12 - - 30 Net loan charge-offs - (241 ) - (105 ) (9 ) 12 - - (343 ) Balance, end of period $ 2,964 2,981 350 3,857 3,061 1,608 328 295 15,444 Net charge-offs to average loans (annualized) 0.11 % Allowance for loan losses to gross loans 1.19 % Allowance for loan losses to nonperforming loans 293.75 % Six months ended June 30, 2018 Commercial Consumer Owner Non-owner occupied occupied Real Home (dollars in thousands) RE RE Construction Business Estate equity Construction Other Total Balance, beginning of period $ 2,534 3,230 325 3,848 3,495 1,600 210 281 15,523 Provision for loan losses 165 478 219 (14 ) 25 (64 ) 72 19 900 Loan charge-offs - (234 ) - (119 ) (77 ) (140 ) - (34 ) (604 ) Loan recoveries - 107 - 134 3 35 - 2 281 Net loan charge-offs - (127 ) - 15 (74 ) (105 ) - (32 ) (323 ) Balance, end of period $ 2,699 3,581 544 3,849 3,446 1,431 282 268 16,100 Net charge-offs to average loans (annualized) 0.04 % Six months ended June 30, 2017 Commercial Consumer Owner Non-owner occupied occupied Real Home RE RE Construction Business Estate equity Construction Other Total Balance, beginning of period $ 2,843 2,778 295 4,123 2,780 1,475 252 309 14,855 Provision for loan losses 121 623 55 (182 ) 200 121 76 (14 ) 1,000 Loan charge-offs - (433 ) - (130 ) - - - - (563 ) Loan recoveries - 13 - 46 81 12 - - 152 Net loan charge-offs - (420 ) - (84 ) 81 12 - - (411 ) Balance, end of period $ 2,964 2,981 350 3,857 3,061 1,608 328 295 15,444 Net charge-offs to average loans (annualized) 0.03 % |
Summary of allowance for loan losses and recorded investment in loans by impairment methodology | June 30, 2018 Allowance for loan losses Recorded investment in loans (dollars in thousands) Commercial Consumer Total Commercial Consumer Total Individually evaluated $ 2,130 1,340 3,470 9,970 5,148 15,118 Collectively evaluated 8,543 4,087 12,630 1,015,565 502,764 1,518,329 Total $ 10,673 5,427 16,100 1,025,535 507,912 1,533,447 December 31, 2017 Allowance for loan losses Recorded investment in loans Commercial Consumer Total Commercial Consumer Total Individually evaluated $ 1,990 1,687 3,677 8,664 3,782 12,446 Collectively evaluated 7,947 3,899 11,846 898,289 476,335 1,374,624 Total $ 9,937 5,586 15,523 906,953 480,117 1,387,070 |
Commercial [Member] | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Summary of breakdown of outstanding loans by risk category | June 30, 2018 Owner Non-owner (dollars in thousands) occupied RE occupied RE Construction Business Total Pass $ 354,276 349,819 73,655 231,214 1,008,964 Special mention 1,644 1,523 - 3,579 6,746 Substandard 2,249 3,967 - 3,609 9,825 Doubtful - - - - - $ 358,169 355,309 73,655 238,402 1,025,535 December 31, 2017 Owner Non-owner occupied RE occupied RE Construction Business Total Pass $ 312,628 306,965 51,179 215,729 886,501 Special mention 1,770 2,082 - 5,540 9,392 Substandard 2,420 3,751 - 4,889 11,060 Doubtful - - - - - $ 316,818 312,798 51,179 226,158 906,953 |
Summary of outstanding commercial and consumer loans which include loans on nonaccrual by past due status | June 30, 2018 Owner Non-owner (dollars in thousands) occupied RE occupied RE Construction Business Total Current $ 357,261 354,718 73,655 237,790 1,023,424 30-59 days past due 908 398 - 519 1,825 60-89 days past due - - - - - Greater than 90 Days - 193 - 93 286 $ 358,169 355,309 73,655 238,402 1,025,535 December 31, 2017 Owner Non-owner occupied RE occupied RE Construction Business Total Current $ 316,818 312,477 51,179 224,861 905,335 30-59 days past due - 129 - 416 545 60-89 days past due - - - - - Greater than 90 Days - 192 - 881 1,073 $ 316,818 312,798 51,179 226,158 906,953 |
Consumer [Member] | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Summary of breakdown of outstanding loans by risk category | June 30, 2018 (dollars in thousands) Real estate Home equity Construction Other Total Pass $ 286,006 152,806 38,400 22,189 499,401 Special mention 1,558 510 - 197 2,265 Substandard 2,869 3,314 - 63 6,246 Doubtful - - - - - $ 290,433 156,630 38,400 22,449 507,912 December 31, 2017 Real estate Home equity Construction Other Total Pass $ 269,422 152,545 28,351 22,367 472,685 Special mention 715 1,025 - 88 1,828 Substandard 2,913 2,571 - 120 5,604 Doubtful - - - - - $ 273,050 156,141 28,351 22,575 480,117 |
Summary of outstanding commercial and consumer loans which include loans on nonaccrual by past due status | June 30, 2018 (dollars in thousands) Real estate Home equity Construction Other Total Current $ 289,769 155,704 38,400 22,442 506,315 30-59 days past due 664 - - 2 666 60-89 days past due - 90 - 5 95 Greater than 90 Days - 836 - - 836 $ 290,433 156,630 38,400 22,449 507,912 December 31, 2017 Real estate Home equity Construction Other Total Current $ 271,284 154,821 28,351 22,506 476,962 30-59 days past due 681 325 - 69 1,075 60-89 days past due 131 995 - - 1,126 Greater than 90 Days 954 - - - 954 $ 273,050 156,141 28,351 22,575 480,117 |
Troubled Debt Restructurings (T
Troubled Debt Restructurings (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Troubled Debt Restructurings [Abstract] | |
Summary of concession at the time of modification and the recorded investment in our TDRs before and after their modification | For the six months ended June 30, 2018 Pre- Post- modification modification Renewals Reduced Converted Maturity Total outstanding outstanding deemed a or deferred to interest date Number recorded recorded (dollars in thousands) concession payments only extensions of loans investment investment Commercial Owner occupied RE 1 - - - 1 $ 506 $ 592 Business 4 - - - 4 1,207 1,532 Consumer Real estate 2 - - - 2 549 669 Home equity - 1 - - 1 180 180 Total loans 7 1 - - 8 $ 2,442 $ 2,973 For the six months ended June 30, 2017 Pre- Post- modification modification Renewals Reduced Converted Maturity Total outstanding outstanding deemed a or deferred to interest date Number recorded recorded concession payments only extensions of loans investment investment Commercial Business 1 1 - - 2 $ 378 $ 387 Total loans 1 1 - - 2 $ 378 $ 387 |
Derivative Financial Instrume21
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Financial Instruments [Abstract] | |
Schedule of outstanding financial derivative instruments | June 30, 2018 Fair Value (dollars in thousands) Notional Balance Sheet Location Asset/(Liability) Mortgage loan interest rate lock commitments $ 25,463 Other assets $ 320 MBS forward sales commitments 16,500 Other liabilities (60 ) Total derivative financial instruments $ 41,963 $ 260 December 31, 2017 Fair Value Notional Balance Sheet Location Asset/(Liability) Mortgage loan interest rate lock commitments $ 15,430 Other assets $ 196 MBS forward sales commitments 10,750 Other liabilities (28 ) Total derivative financial instruments $ 26,180 $ 168 |
Fair Value Accounting (Tables)
Fair Value Accounting (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Accounting [Abstract] | |
Schedule of assets and liabilities measured at fair value on recurring basis | June 30, 2018 (dollars in thousands) Level 1 Level 2 Level 3 Total Assets Securities available for sale US government agencies $ - 8,714 - 8,714 SBA securities - 3,769 - 3,769 State and political subdivisions - 8,472 - 8,472 Asset-backed securities - 6,691 - 6,691 Mortgage-backed securities - 42,421 - 42,421 Mortgage loans held for sale - 8,075 - 8,075 Interest rate lock commitments - 320 - 320 Total assets measured at fair value on a recurring basis $ - 78,462 - 78,462 Liabilities MBS forward sales commitments $ - 60 - 60 Total liabilities measured at fair value on a recurring basis $ - 60 - 60 December 31, 2017 Level 1 Level 2 Level 3 Total Assets Securities available for sale: US government agencies $ - 8,653 - 8,653 SBA securities - 4,063 - 4,063 State and political subdivisions - 11,396 - 11,396 Mortgage-backed securities - 43,491 - 43,491 Mortgage loans held for sale - 11,790 - 11,790 Interest rate lock commitments - 196 - 196 Total assets measured at fair value on a recurring basis $ - 79,589 - 79,589 Liabilities MBS forward sales commitments $ - 28 - 28 Total liabilities measured at fair value on a recurring basis $ - 28 - 28 |
Schedule of assets and liabilities measured at fair value on nonrecurring basis | As of June 30, 2018 (dollars in thousands) Level 1 Level 2 Level 3 Total Assets Impaired loans $ - 2,920 8,728 11,648 Other real estate owned - 23 94 117 Total assets measured at fair value on a nonrecurring basis $ - 2,943 8,822 11,765 As of December 31, 2017 Level 1 Level 2 Level 3 Total Assets Impaired loans $ - 2,685 6,084 8,769 Other real estate owned - 148 94 242 Total assets measured at fair value on a nonrecurring basis $ - 2,833 6,178 9,011 |
Schedule of estimated fair values of the Company's financial instruments | June 30, 2018 Carrying Fair (dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets: Other investments, at cost $ 3,059 3,059 - - 3,059 Loans 1 1,502,229 1,483,215 - - 1,483,215 Financial Liabilities: Deposits 1,567,982 1,430,788 - 1,430,788 - FHLB and other borrowings 28,600 28,792 - 28,792 - Junior subordinated debentures 13,403 14,148 - 14,148 - December 31, 2017 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial Assets: Other investments, at cost $ 4,462 4,462 - - 4,462 Loans 1 1,359,101 1,363,915 - - 1,363,915 Financial Liabilities: Deposits 1,381,123 1,269,462 - 1,269,462 - FHLB and other borrowings 67,200 67,890 - 67,890 - Junior subordinated debentures 13,403 13,166 - 13,166 - 1 Carrying amount is net of the allowance for loan losses and previously presented impaired loans. In accordance with the prospective adoption of ASU No. 2016-01, the fair value of loans as of June 30, 2018 was measured using an exit price notion. The fair value of loans as of December 31, 2017 was measured using an entry price notion. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Common Share [Abstract] | |
Schedule of earnings per share calculation | Three months ended Six months ended June 30, June 30, (dollars in thousands, except share data) 2018 2017 2018 2017 Numerator: Net income available to common shareholders $ 5,510 3,604 10,724 6,716 Denominator: Weighted-average common shares outstanding – basic 7,370,709 6,986,948 7,353,867 6,713,608 Common stock equivalents 380,437 379,260 385,215 385,773 Weighted-average common shares outstanding – diluted 7,751,146 7,366,208 7,739,082 7,099,381 Earnings per common share: Basic $ 0.75 0.52 1.46 1.00 Diluted $ 0.71 0.49 1.39 0.95 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Reportable Segments [Abstract] | |
Schedule of financial information for each reportable segment | (dollars in thousands) Three months ended Three months ended June 30, 2018 June 30, 2017 Commercial Commercial and Retail Mortgage and Retail Mortgage Banking Banking Corporate Eliminations Consolidated Banking Banking Corporate Elimination Consolidated Interest income $ 18,437 98 2 (2 ) 18,535 $ 14,851 80 6 (6 ) 14,931 Interest expense 3,762 - 163 (2 ) 3,923 2,442 - 143 (6 ) 2,579 Net interest income (loss) 14,675 98 (161 ) - 14,612 12,409 80 (137 ) - 12,352 Provision for loan losses 400 - - - 400 500 - - - 500 Noninterest income 1,142 1,629 - - 2,771 959 1,603 - - 2,562 Noninterest expense 8,754 1,165 60 - 9,979 7,667 1,035 60 - 8,762 Net income (loss) before taxes 6,663 562 (221 ) - 7,004 5,201 648 (197 ) - 5,652 Income tax provision (benefit) 1,422 118 (46 ) - 1,494 1,877 240 (69 ) - 2,048 Net income (loss) $ 5,241 444 (175 ) - 5,510 $ 3,324 408 (128 ) - 3,604 Total assets $ 1,777,952 9,404 174,331 (173,903 ) 1,787,784 $ 1,527,837 10,958 156,145 (155,714 ) 1,539,226 (dollars in thousands) Six months ended Six months ended June 30, 2018 June 30, 2017 Commercial Commercial and Retail Mortgage and Retail Mortgage Banking Banking Corporate Eliminations Consolidated Banking Banking Corporate Eliminations Consolidated Interest income $ 35,515 198 4 (4 ) 35,713 $ 28,744 146 8 (8 ) 28,890 Interest expense 6,782 - 282 (4 ) 7,060 4,665 - 274 (8 ) 4,931 Net interest income (loss) 28,733 198 (278 ) - 28,653 24,079 146 (266 ) - 23,959 Provision for loan losses 900 - - - 900 1,000 - - - 1,000 Noninterest income 2,235 2,957 - - 5,192 1,954 2,660 - - 4,614 Noninterest expense 16,935 2,129 120 - 19,184 15,114 1,883 126 - 17,123 Net income before taxes 13,133 1,026 (398 ) - 13,761 9,919 923 (392 ) - 10,450 Income tax provision (benefit) 2,906 215 (84 ) - 3,037 3,530 342 (138 ) - 3,734 Net income (loss) $ 10,227 811 (314 ) - 10,724 $ 6,389 581 (254 ) - 6,716 Total assets $ 1,777,952 9,404 174,331 (173,903 ) 1,787,784 $ 1,527,837 10,958 156,145 (155,714 ) 1,539,226 |
Nature of Business and Basis 25
Nature of Business and Basis of Presentation (Details) $ in Millions | Jun. 30, 2018USD ($) |
Nature of Business and Basis of Presentation [Abstract] | |
Contractual future minimum lease commitments | $ 14.6 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Available for sale | ||
Total investment securities available for sale, Amortized Cost | $ 71,795 | $ 68,181 |
Total investment securities available for sale, Gross Unrealized Gains | 56 | 185 |
Total investment securities available for sale, Gross Unrealized Losses | 1,784 | 763 |
Available-for-sale securities, investment securities, Fair Value | 70,067 | 67,603 |
US government agencies [Member] | ||
Available for sale | ||
Total investment securities available for sale, Amortized Cost | 8,987 | 8,749 |
Total investment securities available for sale, Gross Unrealized Gains | 1 | 1 |
Total investment securities available for sale, Gross Unrealized Losses | 274 | 97 |
Available-for-sale securities, investment securities, Fair Value | 8,714 | 8,653 |
SBA securities [Member] | ||
Available for sale | ||
Total investment securities available for sale, Amortized Cost | 3,904 | 4,087 |
Total investment securities available for sale, Gross Unrealized Gains | ||
Total investment securities available for sale, Gross Unrealized Losses | 135 | 24 |
Available-for-sale securities, investment securities, Fair Value | 3,769 | 4,063 |
State and political subdivisions [Member] | ||
Available for sale | ||
Total investment securities available for sale, Amortized Cost | 8,530 | 11,242 |
Total investment securities available for sale, Gross Unrealized Gains | 49 | 179 |
Total investment securities available for sale, Gross Unrealized Losses | 107 | 25 |
Available-for-sale securities, investment securities, Fair Value | 8,472 | 11,396 |
Asset-backed securities [Member] | ||
Available for sale | ||
Total investment securities available for sale, Amortized Cost | 6,703 | |
Total investment securities available for sale, Gross Unrealized Gains | 3 | |
Total investment securities available for sale, Gross Unrealized Losses | 15 | |
Available-for-sale securities, investment securities, Fair Value | 6,691 | |
Mortgage-backed securities [Member] | ||
Available for sale | ||
Total investment securities available for sale, Amortized Cost | 43,671 | 44,103 |
Total investment securities available for sale, Gross Unrealized Gains | 3 | 5 |
Total investment securities available for sale, Gross Unrealized Losses | 1,253 | 617 |
Available-for-sale securities, investment securities, Fair Value | 42,421 | 43,491 |
Mortgage-backed securities [Member] | FHLMC [Member] | ||
Available for sale | ||
Total investment securities available for sale, Amortized Cost | 8,401 | 9,102 |
Total investment securities available for sale, Gross Unrealized Gains | ||
Total investment securities available for sale, Gross Unrealized Losses | 327 | 149 |
Available-for-sale securities, investment securities, Fair Value | 8,074 | 8,953 |
Mortgage-backed securities [Member] | FNMA [Member] | ||
Available for sale | ||
Total investment securities available for sale, Amortized Cost | 32,089 | 29,383 |
Total investment securities available for sale, Gross Unrealized Gains | 2 | 3 |
Total investment securities available for sale, Gross Unrealized Losses | 780 | 386 |
Available-for-sale securities, investment securities, Fair Value | 31,311 | 29,000 |
Mortgage-backed securities [Member] | GNMA [Member] | ||
Available for sale | ||
Total investment securities available for sale, Amortized Cost | 3,181 | 5,618 |
Total investment securities available for sale, Gross Unrealized Gains | 1 | 2 |
Total investment securities available for sale, Gross Unrealized Losses | 146 | 82 |
Available-for-sale securities, investment securities, Fair Value | $ 3,036 | $ 5,538 |
Investment Securities (Details
Investment Securities (Details 1) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Available for sale | ||
Contractual Maturities, Less than one year, Amount | $ 115 | $ 1,427 |
Contractual Maturities, Less than one year, Yield | 0.31% | 1.10% |
Contractual Maturities, One to five years, Amount | $ 3,945 | $ 2,666 |
Contractual Maturities, One to five years, Yield | 2.09% | 1.59% |
Contractual Maturities, Five to ten years, Amount | $ 22,688 | $ 24,645 |
Contractual Maturities, Five to ten years, Yield | 2.34% | 2.27% |
Contractual Maturities, Over ten years, Amount | $ 43,319 | $ 38,865 |
Contractual Maturities, Over ten years, Yield | 2.61% | 2.15% |
Contractual Maturities, Total, Amount | $ 70,067 | $ 67,603 |
Contractual Maturities, Total, Yield | 2.49% | 2.17% |
US government agencies [Member] | ||
Available for sale | ||
Contractual Maturities, Less than one year, Amount | $ 995 | |
Contractual Maturities, Less than one year, Yield | 1.15% | |
Contractual Maturities, One to five years, Amount | $ 2,641 | $ 1,503 |
Contractual Maturities, One to five years, Yield | 2.12% | 2.04% |
Contractual Maturities, Five to ten years, Amount | $ 6,073 | $ 6,155 |
Contractual Maturities, Five to ten years, Yield | 2.74% | 2.40% |
Contractual Maturities, Over ten years, Amount | ||
Contractual Maturities, Over ten years, Yield | ||
Contractual Maturities, Total, Amount | $ 8,714 | $ 8,653 |
Contractual Maturities, Total, Yield | 2.55% | 2.20% |
SBA securities [Member] | ||
Available for sale | ||
Contractual Maturities, Less than one year, Amount | ||
Contractual Maturities, Less than one year, Yield | ||
Contractual Maturities, One to five years, Amount | ||
Contractual Maturities, One to five years, Yield | ||
Contractual Maturities, Five to ten years, Amount | ||
Contractual Maturities, Five to ten years, Yield | ||
Contractual Maturities, Over ten years, Amount | $ 3,769 | $ 4,063 |
Contractual Maturities, Over ten years, Yield | 2.60% | 2.45% |
Contractual Maturities, Total, Amount | $ 3,769 | $ 4,063 |
Contractual Maturities, Total, Yield | 2.60% | 2.45% |
State and political subdivisions [Member] | ||
Available for sale | ||
Contractual Maturities, Less than one year, Amount | ||
Contractual Maturities, Less than one year, Yield | ||
Contractual Maturities, One to five years, Amount | $ 514 | $ 1,163 |
Contractual Maturities, One to five years, Yield | 2.14% | 1.96% |
Contractual Maturities, Five to ten years, Amount | $ 4,514 | $ 7,162 |
Contractual Maturities, Five to ten years, Yield | 3.11% | 2.84% |
Contractual Maturities, Over ten years, Amount | $ 3,444 | $ 3,071 |
Contractual Maturities, Over ten years, Yield | 2.83% | 2.76% |
Contractual Maturities, Total, Amount | $ 8,472 | $ 11,396 |
Contractual Maturities, Total, Yield | 2.94% | 2.73% |
Asset-backed securities [Member] | ||
Available for sale | ||
Contractual Maturities, Less than one year, Amount | ||
Contractual Maturities, Less than one year, Yield | ||
Contractual Maturities, One to five years, Amount | ||
Contractual Maturities, One to five years, Yield | ||
Contractual Maturities, Five to ten years, Amount | ||
Contractual Maturities, Five to ten years, Yield | ||
Contractual Maturities, Over ten years, Amount | $ 6,691 | |
Contractual Maturities, Over ten years, Yield | 2.89% | |
Contractual Maturities, Total, Amount | $ 6,691 | |
Contractual Maturities, Total, Yield | 2.89% | |
Mortgage-backed securities [Member] | ||
Available for sale | ||
Contractual Maturities, Less than one year, Amount | $ 115 | $ 432 |
Contractual Maturities, Less than one year, Yield | 0.31% | 0.99% |
Contractual Maturities, One to five years, Amount | $ 790 | |
Contractual Maturities, One to five years, Yield | 1.94% | |
Contractual Maturities, Five to ten years, Amount | $ 12,101 | $ 11,328 |
Contractual Maturities, Five to ten years, Yield | 1.86% | 1.84% |
Contractual Maturities, Over ten years, Amount | $ 29,415 | $ 31,731 |
Contractual Maturities, Over ten years, Yield | 2.53% | 2.06% |
Contractual Maturities, Total, Amount | $ 42,421 | $ 43,491 |
Contractual Maturities, Total, Yield | 2.40% | 1.99% |
Investment Securities (Detail28
Investment Securities (Details 2) $ in Thousands | Jun. 30, 2018USD ($)Investments | Dec. 31, 2017USD ($)Investments |
Available for sale | ||
Available for sale Securities, Less than 12 months, Number of investments | Investments | 33 | 25 |
Available for sale Securities, Less than 12 months, Fair value | $ 36,408 | $ 27,846 |
Available for sale Securities, Less than 12 months, Unrealized losses | $ 756 | $ 245 |
Available for sale Securities, 12 months or longer, Number of investments | Investments | 31 | 28 |
Available for sale Securities, 12 months or longer, Fair value | $ 28,299 | $ 27,511 |
Available for sale Securities, 12 months or Longer, Unrealized losses | $ 1,028 | $ 518 |
Available for sale Securities, Total, Number of investments | Investments | 64 | 53 |
Available for sale Securities, Total, Fair value | $ 64,707 | $ 55,357 |
Available for sale Securities, Total, Unrealized losses | $ 1,784 | $ 763 |
US government agencies [Member] | ||
Available for sale | ||
Available for sale Securities, Less than 12 months, Number of investments | Investments | 6 | 5 |
Available for sale Securities, Less than 12 months, Fair value | $ 5,336 | $ 4,184 |
Available for sale Securities, Less than 12 months, Unrealized losses | $ 118 | $ 22 |
Available for sale Securities, 12 months or longer, Number of investments | Investments | 3 | 4 |
Available for sale Securities, 12 months or longer, Fair value | $ 2,878 | $ 3,968 |
Available for sale Securities, 12 months or Longer, Unrealized losses | $ 156 | $ 75 |
Available for sale Securities, Total, Number of investments | Investments | 9 | 9 |
Available for sale Securities, Total, Fair value | $ 8,214 | $ 8,152 |
Available for sale Securities, Total, Unrealized losses | $ 274 | $ 97 |
SBA securities [Member] | ||
Available for sale | ||
Available for sale Securities, Less than 12 months, Number of investments | Investments | 1 | 1 |
Available for sale Securities, Less than 12 months, Fair value | $ 2,759 | $ 2,936 |
Available for sale Securities, Less than 12 months, Unrealized losses | $ 106 | $ 13 |
Available for sale Securities, 12 months or longer, Number of investments | Investments | 1 | 1 |
Available for sale Securities, 12 months or longer, Fair value | $ 1,010 | $ 1,127 |
Available for sale Securities, 12 months or Longer, Unrealized losses | $ 29 | $ 11 |
Available for sale Securities, Total, Number of investments | Investments | 2 | 2 |
Available for sale Securities, Total, Fair value | $ 3,769 | $ 4,063 |
Available for sale Securities, Total, Unrealized losses | $ 135 | $ 24 |
State and political subdivisions [Member] | ||
Available for sale | ||
Available for sale Securities, Less than 12 months, Number of investments | Investments | 7 | 3 |
Available for sale Securities, Less than 12 months, Fair value | $ 4,747 | $ 1,214 |
Available for sale Securities, Less than 12 months, Unrealized losses | $ 71 | $ 9 |
Available for sale Securities, 12 months or longer, Number of investments | Investments | 2 | 2 |
Available for sale Securities, 12 months or longer, Fair value | $ 769 | $ 792 |
Available for sale Securities, 12 months or Longer, Unrealized losses | $ 36 | $ 16 |
Available for sale Securities, Total, Number of investments | Investments | 9 | 5 |
Available for sale Securities, Total, Fair value | $ 5,516 | $ 2,006 |
Available for sale Securities, Total, Unrealized losses | $ 107 | $ 25 |
Asset-backed securities [Member] | ||
Available for sale | ||
Available for sale Securities, Less than 12 months, Number of investments | Investments | 3 | |
Available for sale Securities, Less than 12 months, Fair value | $ 4,851 | |
Available for sale Securities, Less than 12 months, Unrealized losses | $ 15 | |
Available for sale Securities, 12 months or longer, Number of investments | Investments | ||
Available for sale Securities, 12 months or longer, Fair value | ||
Available for sale Securities, 12 months or Longer, Unrealized losses | ||
Available for sale Securities, Total, Number of investments | Investments | 3 | |
Available for sale Securities, Total, Fair value | $ 4,851 | |
Available for sale Securities, Total, Unrealized losses | $ 15 | |
Mortgage-backed securities [Member] | FHLMC [Member] | ||
Available for sale | ||
Available for sale Securities, Less than 12 months, Number of investments | Investments | 3 | 3 |
Available for sale Securities, Less than 12 months, Fair value | $ 2,610 | $ 2,897 |
Available for sale Securities, Less than 12 months, Unrealized losses | $ 90 | $ 26 |
Available for sale Securities, 12 months or longer, Number of investments | Investments | 7 | 7 |
Available for sale Securities, 12 months or longer, Fair value | $ 5,464 | $ 6,056 |
Available for sale Securities, 12 months or Longer, Unrealized losses | $ 237 | $ 123 |
Available for sale Securities, Total, Number of investments | Investments | 10 | 10 |
Available for sale Securities, Total, Fair value | $ 8,074 | $ 8,953 |
Available for sale Securities, Total, Unrealized losses | $ 327 | $ 149 |
Mortgage-backed securities [Member] | FNMA [Member] | ||
Available for sale | ||
Available for sale Securities, Less than 12 months, Number of investments | Investments | 12 | 11 |
Available for sale Securities, Less than 12 months, Fair value | $ 14,882 | $ 14,345 |
Available for sale Securities, Less than 12 months, Unrealized losses | $ 297 | $ 135 |
Available for sale Securities, 12 months or longer, Number of investments | Investments | 16 | 13 |
Available for sale Securities, 12 months or longer, Fair value | $ 16,386 | $ 14,597 |
Available for sale Securities, 12 months or Longer, Unrealized losses | $ 483 | $ 251 |
Available for sale Securities, Total, Number of investments | Investments | 28 | 24 |
Available for sale Securities, Total, Fair value | $ 31,268 | $ 28,942 |
Available for sale Securities, Total, Unrealized losses | $ 780 | $ 386 |
Mortgage-backed securities [Member] | GNMA [Member] | ||
Available for sale | ||
Available for sale Securities, Less than 12 months, Number of investments | Investments | 1 | 2 |
Available for sale Securities, Less than 12 months, Fair value | $ 1,223 | $ 2,270 |
Available for sale Securities, Less than 12 months, Unrealized losses | $ 59 | $ 40 |
Available for sale Securities, 12 months or longer, Number of investments | Investments | 2 | 1 |
Available for sale Securities, 12 months or longer, Fair value | $ 1,792 | $ 971 |
Available for sale Securities, 12 months or Longer, Unrealized losses | $ 87 | $ 42 |
Available for sale Securities, Total, Number of investments | Investments | 3 | 3 |
Available for sale Securities, Total, Fair value | $ 3,015 | $ 3,241 |
Available for sale Securities, Total, Unrealized losses | $ 146 | $ 82 |
Investment Securities (Detail29
Investment Securities (Details 3) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Other investments | ||
Federal Home Loan Bank stock | $ 2,524 | $ 3,754 |
Investment in Trust Preferred securities | 403 | 403 |
Other investments | 132 | 305 |
Total other investments | $ 3,059 | $ 4,462 |
Investment Securities (Detail30
Investment Securities (Details Textual) | 6 Months Ended | ||
Jun. 30, 2018USD ($)Investments | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($)Investments | |
Investment Securities (Textual) | |||
Sale of investment securities | $ 5,800,000 | $ 415,000 | |
Loss on sale of investments securities | $ 1,000 | ||
Gain on sale of investment securities | $ 2,000 | ||
Fair market value, less than 12 months, number of investments | Investments | 33 | 25 | |
Fair market value, less than 12 months | $ 36,400,000 | ||
Fair market value, 12 months or longer, number of investments | Investments | 31 | 28 | |
Fair market value, 12 months or longer | $ 28,300,000 | ||
Securities pledged as collateral for repurchase agreements from brokers | $ 4,200,000 | $ 7,700,000 |
Mortgage Loans Held for Sale (D
Mortgage Loans Held for Sale (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Mortgage Loans Held for Sale (Textual) | ||
Mortgage loans held for sale, fair value | $ 8.1 | $ 11.8 |
Loans and Allowance for Loan 32
Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Composition of loan portfolio | ||
Total gross loans, net of deferred fees | $ 1,533,447 | $ 1,387,070 |
Less-allowance for loan losses | (16,100) | (15,523) |
Total loans, net | $ 1,517,347 | $ 1,371,547 |
Total gross loans, net of deferred fees, (Percentage) | 100.00% | 100.00% |
Commercial [Member] | ||
Composition of loan portfolio | ||
Total gross loans, net of deferred fees | $ 1,025,535 | $ 906,953 |
Total gross loans, net of deferred fees, (Percentage) | 66.90% | 65.40% |
Commercial [Member] | Owner occupied RE [Member] | ||
Composition of loan portfolio | ||
Total gross loans, net of deferred fees | $ 358,169 | $ 316,818 |
Total gross loans, net of deferred fees, (Percentage) | 23.40% | 22.80% |
Commercial [Member] | Non-owner occupied RE [Member] | ||
Composition of loan portfolio | ||
Total gross loans, net of deferred fees | $ 355,309 | $ 312,798 |
Total gross loans, net of deferred fees, (Percentage) | 23.20% | 22.60% |
Commercial [Member] | Business [Member] | ||
Composition of loan portfolio | ||
Total gross loans, net of deferred fees | $ 238,402 | $ 226,158 |
Total gross loans, net of deferred fees, (Percentage) | 15.50% | 16.30% |
Commercial [Member] | Construction [Member] | ||
Composition of loan portfolio | ||
Total gross loans, net of deferred fees | $ 73,655 | $ 51,179 |
Total gross loans, net of deferred fees, (Percentage) | 4.80% | 3.70% |
Consumer [Member] | ||
Composition of loan portfolio | ||
Total gross loans, net of deferred fees | $ 507,912 | $ 480,117 |
Total gross loans, net of deferred fees, (Percentage) | 33.10% | 34.60% |
Consumer [Member] | Other [Member] | ||
Composition of loan portfolio | ||
Total gross loans, net of deferred fees | $ 22,449 | $ 22,575 |
Total gross loans, net of deferred fees, (Percentage) | 1.50% | 1.60% |
Consumer [Member] | Real estate [Member] | ||
Composition of loan portfolio | ||
Total gross loans, net of deferred fees | $ 290,433 | $ 273,050 |
Total gross loans, net of deferred fees, (Percentage) | 18.90% | 19.70% |
Consumer [Member] | Home equity [Member] | ||
Composition of loan portfolio | ||
Total gross loans, net of deferred fees | $ 156,630 | $ 156,141 |
Total gross loans, net of deferred fees, (Percentage) | 10.20% | 11.30% |
Consumer [Member] | Construction [Member] | ||
Composition of loan portfolio | ||
Total gross loans, net of deferred fees | $ 38,400 | $ 28,351 |
Total gross loans, net of deferred fees, (Percentage) | 2.50% | 2.00% |
Loans and Allowance for Loan 33
Loans and Allowance for Loan Losses (Details 1) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans, net of deferred fees, One year or less | $ 219,612 | $ 216,013 |
Total gross loans, net of deferred fees, After one but within five years | 593,042 | 554,293 |
Total gross loans, net of deferred fees, After five years | 720,793 | 616,764 |
Total gross loans, net of deferred fees | 1,533,447 | 1,387,070 |
Loans maturing after one year with: fixed interest rates | 999,311 | 875,991 |
Loans maturing after one year with: floating interest rates | 314,524 | 295,066 |
Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans, net of deferred fees, One year or less | 148,549 | 150,364 |
Total gross loans, net of deferred fees, After one but within five years | 491,862 | 453,569 |
Total gross loans, net of deferred fees, After five years | 385,124 | 303,020 |
Total gross loans, net of deferred fees | 1,025,535 | 906,953 |
Commercial [Member] | Owner occupied RE [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans, net of deferred fees, One year or less | 27,294 | 24,171 |
Total gross loans, net of deferred fees, After one but within five years | 163,994 | 167,425 |
Total gross loans, net of deferred fees, After five years | 166,881 | 125,222 |
Total gross loans, net of deferred fees | 358,169 | 316,818 |
Commercial [Member] | Non-owner occupied RE [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans, net of deferred fees, One year or less | 37,270 | 39,519 |
Total gross loans, net of deferred fees, After one but within five years | 182,889 | 165,764 |
Total gross loans, net of deferred fees, After five years | 135,150 | 107,515 |
Total gross loans, net of deferred fees | 355,309 | 312,798 |
Commercial [Member] | Business [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans, net of deferred fees, One year or less | 66,961 | 73,588 |
Total gross loans, net of deferred fees, After one but within five years | 123,166 | 107,584 |
Total gross loans, net of deferred fees, After five years | 48,275 | 44,986 |
Total gross loans, net of deferred fees | 238,402 | 226,158 |
Commercial [Member] | Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans, net of deferred fees, One year or less | 17,024 | 13,086 |
Total gross loans, net of deferred fees, After one but within five years | 21,813 | 12,796 |
Total gross loans, net of deferred fees, After five years | 34,818 | 25,297 |
Total gross loans, net of deferred fees | 73,655 | 51,179 |
Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans, net of deferred fees, One year or less | 71,063 | 65,649 |
Total gross loans, net of deferred fees, After one but within five years | 101,180 | 100,724 |
Total gross loans, net of deferred fees, After five years | 335,669 | 313,744 |
Total gross loans, net of deferred fees | 507,912 | 480,117 |
Consumer [Member] | Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans, net of deferred fees, One year or less | 7,584 | 7,203 |
Total gross loans, net of deferred fees, After one but within five years | 10,169 | 11,371 |
Total gross loans, net of deferred fees, After five years | 4,696 | 4,001 |
Total gross loans, net of deferred fees | 22,449 | 22,575 |
Consumer [Member] | Real estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans, net of deferred fees, One year or less | 32,872 | 30,172 |
Total gross loans, net of deferred fees, After one but within five years | 62,050 | 61,809 |
Total gross loans, net of deferred fees, After five years | 195,511 | 181,069 |
Total gross loans, net of deferred fees | 290,433 | 273,050 |
Consumer [Member] | Home equity [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans, net of deferred fees, One year or less | 9,518 | 13,331 |
Total gross loans, net of deferred fees, After one but within five years | 28,079 | 25,807 |
Total gross loans, net of deferred fees, After five years | 119,033 | 117,003 |
Total gross loans, net of deferred fees | 156,630 | 156,141 |
Consumer [Member] | Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans, net of deferred fees, One year or less | 21,089 | 14,943 |
Total gross loans, net of deferred fees, After one but within five years | 882 | 1,737 |
Total gross loans, net of deferred fees, After five years | 16,429 | 11,671 |
Total gross loans, net of deferred fees | $ 38,400 | $ 28,351 |
Loans and Allowance for Loan 34
Loans and Allowance for Loan Losses (Details 2) - Commercial loans [Member] - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | $ 1,025,535 | $ 906,953 |
Owner occupied RE [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 358,169 | 316,818 |
Non-owner occupied RE [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 355,309 | 312,798 |
Construction [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 73,655 | 51,179 |
Business [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 238,402 | 226,158 |
Pass [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 1,008,964 | 886,501 |
Pass [Member] | Owner occupied RE [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 354,276 | 312,628 |
Pass [Member] | Non-owner occupied RE [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 349,819 | 306,965 |
Pass [Member] | Construction [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 73,655 | 51,179 |
Pass [Member] | Business [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 231,214 | 215,729 |
Special mention [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 6,746 | 9,392 |
Special mention [Member] | Owner occupied RE [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 1,644 | 1,770 |
Special mention [Member] | Non-owner occupied RE [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 1,523 | 2,082 |
Special mention [Member] | Construction [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | ||
Special mention [Member] | Business [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 3,579 | 5,540 |
Substandard [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 9,825 | 11,060 |
Substandard [Member] | Owner occupied RE [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 2,249 | 2,420 |
Substandard [Member] | Non-owner occupied RE [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 3,967 | 3,751 |
Substandard [Member] | Construction [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | ||
Substandard [Member] | Business [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 3,609 | 4,889 |
Doubtful [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial 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] | Construction [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | ||
Doubtful [Member] | Business [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans |
Loans and Allowance for Loan 35
Loans and Allowance for Loan Losses (Details 3) - Commercial [Member] - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Outstanding commercial and consumer loans which include loans on nonaccrual status | ||
Current | $ 1,023,424 | $ 905,335 |
30-59 days past due | 1,825 | 545 |
60-89 days past due | ||
Greater than 90 days | 286 | 1,073 |
Total commercial loans | 1,025,535 | 906,953 |
Owner occupied RE [Member] | ||
Outstanding commercial and consumer loans which include loans on nonaccrual status | ||
Current | 357,261 | 316,818 |
30-59 days past due | 908 | |
60-89 days past due | ||
Greater than 90 days | ||
Total commercial loans | 358,169 | 316,818 |
Non-owner occupied RE [Member] | ||
Outstanding commercial and consumer loans which include loans on nonaccrual status | ||
Current | 354,718 | 312,477 |
30-59 days past due | 398 | 129 |
60-89 days past due | ||
Greater than 90 days | 193 | 192 |
Total commercial loans | 355,309 | 312,798 |
Construction [Member] | ||
Outstanding commercial and consumer loans which include loans on nonaccrual status | ||
Current | 73,655 | 51,179 |
30-59 days past due | ||
60-89 days past due | ||
Greater than 90 days | ||
Total commercial loans | 73,655 | 51,179 |
Business [Member] | ||
Outstanding commercial and consumer loans which include loans on nonaccrual status | ||
Current | 237,790 | 224,861 |
30-59 days past due | 519 | 416 |
60-89 days past due | ||
Greater than 90 days | 93 | 881 |
Total commercial loans | $ 238,402 | $ 226,158 |
Loans and Allowance for Loan 36
Loans and Allowance for Loan Losses (Details 4) - Consumer loans [Member] - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | $ 507,912 | $ 480,117 |
Other [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 22,449 | 22,575 |
Pass [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 499,401 | 472,685 |
Pass [Member] | Other [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 22,189 | 22,367 |
Special Mention [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 2,265 | 1,828 |
Special Mention [Member] | Other [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 197 | 88 |
Substandard [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 6,246 | 5,604 |
Substandard [Member] | Other [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 63 | 120 |
Doubtful [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | ||
Doubtful [Member] | Other [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | ||
Real estate [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 290,433 | 273,050 |
Real estate [Member] | Pass [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 286,006 | 269,422 |
Real estate [Member] | Special Mention [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 1,558 | 715 |
Real estate [Member] | Substandard [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 2,869 | 2,913 |
Real estate [Member] | Doubtful [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | ||
Home equity [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 156,630 | 156,141 |
Home equity [Member] | Pass [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 152,806 | 152,545 |
Home equity [Member] | Special Mention [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 510 | 1,025 |
Home equity [Member] | Substandard [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 3,314 | 2,571 |
Home equity [Member] | Doubtful [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | ||
Construction [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 38,400 | 28,351 |
Construction [Member] | Pass [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 38,400 | 28,351 |
Construction [Member] | Special Mention [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | ||
Construction [Member] | Substandard [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | ||
Construction [Member] | Doubtful [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans |
Loans and Allowance for Loan 37
Loans and Allowance for Loan Losses (Details 5) - Consumer loans [Member] - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Outstanding commercial and consumer loans which include loans on nonaccrual status | ||
Current | $ 506,315 | $ 476,962 |
30-59 days past due | 666 | 1,075 |
60-89 days past due | 95 | 1,126 |
Greater than 90 days | 836 | 954 |
Total consumer loans | 507,912 | 480,117 |
Real estate [Member] | ||
Outstanding commercial and consumer loans which include loans on nonaccrual status | ||
Current | 289,769 | 271,284 |
30-59 days past due | 664 | 681 |
60-89 days past due | 131 | |
Greater than 90 days | 954 | |
Total consumer loans | 290,433 | 273,050 |
Home equity [Member] | ||
Outstanding commercial and consumer loans which include loans on nonaccrual status | ||
Current | 155,704 | 154,821 |
30-59 days past due | 325 | |
60-89 days past due | 90 | 995 |
Greater than 90 days | 836 | |
Total consumer loans | 156,630 | 156,141 |
Construction [Member] | ||
Outstanding commercial and consumer loans which include loans on nonaccrual status | ||
Current | 38,400 | 28,351 |
30-59 days past due | ||
60-89 days past due | ||
Greater than 90 days | ||
Total consumer loans | 38,400 | 28,351 |
Other [Member] | ||
Outstanding commercial and consumer loans which include loans on nonaccrual status | ||
Current | 22,442 | 22,506 |
30-59 days past due | 2 | 69 |
60-89 days past due | 5 | |
Greater than 90 days | ||
Total consumer loans | $ 22,449 | $ 22,575 |
Loans and Allowance for Loan 38
Loans and Allowance for Loan Losses (Details 6) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Summary of nonperforming assets | ||
Nonaccruing troubled debt restructurings | $ 3,166 | $ 2,673 |
Total nonaccrual loans, including nonaccruing TDRs | 7,721 | 7,301 |
Other real estate owned | 117 | 242 |
Total nonperforming assets | $ 7,838 | $ 7,543 |
Nonperforming assets as a percentage of: | ||
Total assets | 0.44% | 0.46% |
Gross loans | 0.51% | 0.54% |
Total loans over 90 days past due | $ 1,122 | $ 2,027 |
Loans over 90 days past due and still accruing | ||
Accruing troubled debt restructurings | 7,397 | 5,145 |
Commercial [Member] | Construction [Member] | ||
Summary of nonperforming assets | ||
Nonaccruing troubled debt restructurings | ||
Commercial [Member] | Owner occupied RE [Member] | ||
Summary of nonperforming assets | ||
Nonaccruing troubled debt restructurings | ||
Commercial [Member] | Non-owner occupied RE [Member] | ||
Summary of nonperforming assets | ||
Nonaccruing troubled debt restructurings | 1,689 | 1,581 |
Commercial [Member] | Business [Member] | ||
Summary of nonperforming assets | ||
Nonaccruing troubled debt restructurings | 94 | 910 |
Consumer [Member] | Real estate [Member] | ||
Summary of nonperforming assets | ||
Nonaccruing troubled debt restructurings | 1,174 | 992 |
Consumer [Member] | Home equity [Member] | ||
Summary of nonperforming assets | ||
Nonaccruing troubled debt restructurings | 1,598 | 1,144 |
Consumer [Member] | Construction [Member] | ||
Summary of nonperforming assets | ||
Nonaccruing troubled debt restructurings | ||
Consumer [Member] | Other [Member] | ||
Summary of nonperforming assets | ||
Nonaccruing troubled debt restructurings | $ 1 |
Loans and Allowance for Loan 39
Loans and Allowance for Loan Losses (Details 7) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Summary of key information for impaired loans | ||
Unpaid Principal Balance | $ 20,098 | $ 17,086 |
Impaired loans | 15,118 | 12,446 |
Impaired loans with related allowance for loan losses | 8,304 | 7,990 |
Related allowance for loan losses | 3,470 | 3,677 |
Commercial [Member] | ||
Summary of key information for impaired loans | ||
Unpaid Principal Balance | 14,238 | 12,843 |
Impaired loans | 9,970 | 8,664 |
Impaired loans with related allowance for loan losses | 5,717 | 5,103 |
Related allowance for loan losses | 2,130 | 1,990 |
Commercial [Member] | Owner occupied RE [Member] | ||
Summary of key information for impaired loans | ||
Unpaid Principal Balance | 2,858 | 2,281 |
Impaired loans | 2,793 | 2,235 |
Impaired loans with related allowance for loan losses | 454 | 464 |
Related allowance for loan losses | 74 | 179 |
Commercial [Member] | Non-owner occupied RE [Member] | ||
Summary of key information for impaired loans | ||
Unpaid Principal Balance | 7,304 | 6,827 |
Impaired loans | 3,829 | 3,665 |
Impaired loans with related allowance for loan losses | 2,269 | 2,646 |
Related allowance for loan losses | 659 | 750 |
Commercial [Member] | Business [Member] | ||
Summary of key information for impaired loans | ||
Unpaid Principal Balance | 4,076 | 3,735 |
Impaired loans | 3,348 | 2,764 |
Impaired loans with related allowance for loan losses | 2,994 | 1,993 |
Related allowance for loan losses | 1,397 | 1,061 |
Commercial [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] | ||
Summary of key information for impaired loans | ||
Unpaid Principal Balance | 5,860 | 4,243 |
Impaired loans | 5,148 | 3,782 |
Impaired loans with related allowance for loan losses | 2,587 | 2,887 |
Related allowance for loan losses | 1,340 | 1,687 |
Consumer [Member] | Other [Member] | ||
Summary of key information for impaired loans | ||
Unpaid Principal Balance | 164 | 171 |
Impaired loans | 164 | 170 |
Impaired loans with related allowance for loan losses | 164 | 170 |
Related allowance for loan losses | 20 | 22 |
Consumer [Member] | Real estate [Member] | ||
Summary of key information for impaired loans | ||
Unpaid Principal Balance | 2,946 | 2,062 |
Impaired loans | 2,867 | 2,037 |
Impaired loans with related allowance for loan losses | 2,203 | 2,037 |
Related allowance for loan losses | 1,226 | 1,379 |
Consumer [Member] | Home equity [Member] | ||
Summary of key information for impaired loans | ||
Unpaid Principal Balance | 2,750 | 2,010 |
Impaired loans | 2,117 | 1,575 |
Impaired loans with related allowance for loan losses | 220 | 680 |
Related allowance for loan losses | 94 | 286 |
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 |
Loans and Allowance for Loan 40
Loans and Allowance for Loan Losses (Details 8) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Average recorded investment and interest income recognized on impaired loans | |||||
Average recorded investment | $ 15,231 | $ 11,450 | $ 15,354 | $ 11,581 | $ 13,019 |
Recognized interest income | 244 | 146 | 402 | 264 | 637 |
Commercial [Member] | |||||
Average recorded investment and interest income recognized on impaired loans | |||||
Average recorded investment | 10,039 | 9,438 | 10,104 | 9,560 | 9,222 |
Recognized interest income | 179 | 128 | 267 | 227 | 465 |
Commercial [Member] | Owner occupied RE [Member] | |||||
Average recorded investment and interest income recognized on impaired loans | |||||
Average recorded investment | 2,800 | 2,195 | 2,804 | 2,204 | 2,255 |
Recognized interest income | 45 | 26 | 62 | 53 | 104 |
Commercial [Member] | Non-owner occupied RE [Member] | |||||
Average recorded investment and interest income recognized on impaired loans | |||||
Average recorded investment | 3,878 | 3,620 | 3,920 | 3,721 | 4,144 |
Recognized interest income | 77 | 48 | 126 | 76 | 199 |
Commercial [Member] | Business [Member] | |||||
Average recorded investment and interest income recognized on impaired loans | |||||
Average recorded investment | 3,361 | 3,623 | 3,380 | 3,635 | 2,823 |
Recognized interest income | 57 | 54 | 79 | 98 | 162 |
Commercial [Member] | Construction [Member] | |||||
Average recorded investment and interest income recognized on impaired loans | |||||
Average recorded investment | |||||
Recognized interest income | |||||
Consumer [Member] | |||||
Average recorded investment and interest income recognized on impaired loans | |||||
Average recorded investment | 5,192 | 2,012 | 5,250 | 2,021 | 3,797 |
Recognized interest income | 65 | 18 | 135 | 37 | 172 |
Consumer [Member] | Other [Member] | |||||
Average recorded investment and interest income recognized on impaired loans | |||||
Average recorded investment | 165 | 180 | 167 | 181 | 174 |
Recognized interest income | 1 | 1 | 3 | 2 | 6 |
Consumer [Member] | Real estate [Member] | |||||
Average recorded investment and interest income recognized on impaired loans | |||||
Average recorded investment | 2,892 | 1,635 | 2,911 | 1,642 | 2,047 |
Recognized interest income | 40 | 16 | 81 | 33 | 69 |
Consumer [Member] | Home equity [Member] | |||||
Average recorded investment and interest income recognized on impaired loans | |||||
Average recorded investment | 2,135 | 197 | 2,172 | 198 | 1,576 |
Recognized interest income | 24 | 1 | 51 | 2 | 97 |
Consumer [Member] | Construction [Member] | |||||
Average recorded investment and interest income recognized on impaired loans | |||||
Average recorded investment | |||||
Recognized interest income |
Loans and Allowance for Loan 41
Loans and Allowance for Loan Losses (Details 9) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Financing Receivable, Allowance For Credit Losses [Roll Forward] | ||||
Balance, beginning of period | $ 15,852 | $ 15,287 | $ 15,523 | $ 14,855 |
Provision for loan losses | 400 | 500 | 900 | 1,000 |
Loan charge-offs | (311) | (373) | (604) | (563) |
Loan recoveries | 159 | 30 | 281 | 152 |
Net loan charge-offs | (152) | (343) | (323) | (441) |
Balance, end of period | $ 16,100 | $ 15,444 | $ 16,100 | $ 15,444 |
Net charge-offs to average loans (annualized) | 0.04% | 0.11% | 0.04% | 0.03% |
Allowance for loan losses to gross loans | 1.05% | 1.19% | ||
Allowance for loan losses to nonperforming loans | 208.52% | 293.75% | ||
Commercial [Member] | ||||
Financing Receivable, Allowance For Credit Losses [Roll Forward] | ||||
Balance, beginning of period | $ 9,937 | |||
Balance, end of period | $ 10,673 | 10,673 | ||
Commercial [Member] | Owner occupied RE [Member] | ||||
Financing Receivable, Allowance For Credit Losses [Roll Forward] | ||||
Balance, beginning of period | 2,680 | $ 3,052 | 2,534 | $ 2,843 |
Provision for loan losses | 19 | (88) | 165 | 121 |
Loan charge-offs | ||||
Loan recoveries | ||||
Net loan charge-offs | ||||
Balance, end of period | 2,699 | 2,964 | 2,699 | 2,964 |
Commercial [Member] | Non-owner occupied RE [Member] | ||||
Financing Receivable, Allowance For Credit Losses [Roll Forward] | ||||
Balance, beginning of period | 3,366 | 2,967 | 3,230 | 2,778 |
Provision for loan losses | 342 | 255 | 478 | 623 |
Loan charge-offs | (234) | (253) | (234) | (433) |
Loan recoveries | 107 | 12 | 107 | 13 |
Net loan charge-offs | (127) | (241) | (127) | (420) |
Balance, end of period | 3,581 | 2,981 | 3,581 | 2,981 |
Commercial [Member] | Business [Member] | ||||
Financing Receivable, Allowance For Credit Losses [Roll Forward] | ||||
Balance, beginning of period | 3,553 | 3,823 | 3,848 | 4,123 |
Provision for loan losses | 280 | 139 | (14) | (182) |
Loan charge-offs | (120) | (119) | (130) | |
Loan recoveries | 16 | 15 | 134 | 46 |
Net loan charge-offs | 16 | (105) | 15 | (84) |
Balance, end of period | 3,849 | 3,857 | 3,849 | 3,857 |
Commercial [Member] | Construction [Member] | ||||
Financing Receivable, Allowance For Credit Losses [Roll Forward] | ||||
Balance, beginning of period | 415 | 334 | 325 | 295 |
Provision for loan losses | 129 | 16 | 219 | 55 |
Loan charge-offs | ||||
Loan recoveries | ||||
Net loan charge-offs | ||||
Balance, end of period | 544 | 350 | 544 | 350 |
Consumer [Member] | ||||
Financing Receivable, Allowance For Credit Losses [Roll Forward] | ||||
Balance, beginning of period | 5,586 | |||
Balance, end of period | 5,427 | 5,427 | ||
Consumer [Member] | Other [Member] | ||||
Financing Receivable, Allowance For Credit Losses [Roll Forward] | ||||
Balance, beginning of period | 280 | 373 | 281 | 309 |
Provision for loan losses | (12) | (78) | 19 | (14) |
Loan charge-offs | (34) | |||
Loan recoveries | 2 | |||
Net loan charge-offs | (32) | |||
Balance, end of period | 268 | 295 | 268 | 295 |
Consumer [Member] | Real Estate [Member] | ||||
Financing Receivable, Allowance For Credit Losses [Roll Forward] | ||||
Balance, beginning of period | 3,391 | 2,830 | 3,495 | 2,780 |
Provision for loan losses | 54 | 240 | 25 | 200 |
Loan charge-offs | (77) | |||
Loan recoveries | 1 | (9) | 3 | 81 |
Net loan charge-offs | 1 | (9) | (74) | 81 |
Balance, end of period | 3,446 | 3,061 | 3,446 | 3,061 |
Consumer [Member] | Home equity [Member] | ||||
Financing Receivable, Allowance For Credit Losses [Roll Forward] | ||||
Balance, beginning of period | 1,911 | 1,619 | 1,600 | 1,475 |
Provision for loan losses | (438) | (23) | (64) | 121 |
Loan charge-offs | (77) | (140) | ||
Loan recoveries | 35 | 12 | 35 | 12 |
Net loan charge-offs | (42) | 12 | (105) | 12 |
Balance, end of period | 1,431 | 1,608 | 1,431 | 1,608 |
Consumer [Member] | Construction [Member] | ||||
Financing Receivable, Allowance For Credit Losses [Roll Forward] | ||||
Balance, beginning of period | 256 | 289 | 210 | 252 |
Provision for loan losses | 26 | 39 | 72 | 76 |
Loan charge-offs | ||||
Loan recoveries | ||||
Net loan charge-offs | ||||
Balance, end of period | $ 282 | $ 328 | $ 282 | $ 328 |
Loans and Allowance for Loan 42
Loans and Allowance for Loan Losses (Details 10) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Allowance for loan losses and recorded investment in loans by impairment methodology | ||||||
Allowance for loan losses, Individually evaluated | $ 3,470 | $ 3,677 | ||||
Recorded investment in loans, Individually evaluated | 15,118 | 12,446 | ||||
Allowance for loan losses, Collectively evaluated | 12,630 | 11,846 | ||||
Recorded investment in loans, Collectively evaluated | 1,518,329 | 1,374,624 | ||||
Allowance for loan losses, Total | 16,100 | $ 15,852 | 15,523 | $ 15,444 | $ 15,287 | $ 14,855 |
Recorded investment in loans, Total | 1,533,447 | 1,387,070 | ||||
Commercial [Member] | ||||||
Allowance for loan losses and recorded investment in loans by impairment methodology | ||||||
Allowance for loan losses, Individually evaluated | 2,130 | 1,990 | ||||
Recorded investment in loans, Individually evaluated | 9,970 | 8,664 | ||||
Allowance for loan losses, Collectively evaluated | 8,543 | 7,947 | ||||
Recorded investment in loans, Collectively evaluated | 1,015,565 | 898,289 | ||||
Allowance for loan losses, Total | 10,673 | 9,937 | ||||
Recorded investment in loans, Total | 1,025,535 | 906,953 | ||||
Consumer [Member] | ||||||
Allowance for loan losses and recorded investment in loans by impairment methodology | ||||||
Allowance for loan losses, Individually evaluated | 1,340 | 1,687 | ||||
Recorded investment in loans, Individually evaluated | 5,148 | 3,782 | ||||
Allowance for loan losses, Collectively evaluated | 4,087 | 3,899 | ||||
Recorded investment in loans, Collectively evaluated | 502,764 | 476,335 | ||||
Allowance for loan losses, Total | 5,427 | 5,586 | ||||
Recorded investment in loans, Total | $ 507,912 | $ 480,117 |
Loans and Allowance for Loan 43
Loans and Allowance for Loan Losses (Details Textual) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Loans and Allowance for Loan Losses (Textual) | ||
Part of loans of 30 days or more past due as a percentage of total loan portfolio | 0.24% | 0.34% |
Net of deferred loan fees and costs | $ 2.7 | $ 2.3 |
Commercial [Member] | ||
Loans and Allowance for Loan Losses (Textual) | ||
Part of loans of 30 days or more past due as a percentage of total loan portfolio | 0.14% | 0.11% |
Consumer [Member] | ||
Loans and Allowance for Loan Losses (Textual) | ||
Part of loans of 30 days or more past due as a percentage of total loan portfolio | 0.10% | 0.23% |
Troubled Debt Restructurings (D
Troubled Debt Restructurings (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018USD ($)Investments | Jun. 30, 2017USD ($)Investments | |
Summary of concession at the time of modification and the recorded investment in TDRs before and after their modification | ||
Renewals deemed a concession | 7 | 1 |
Reduced or deferred payments | 1 | 1 |
Converted to interest only | ||
Maturity date extensions | ||
Total number of loans | 8 | 2 |
Pre-modification outstanding recorded investment | $ | $ 2,442 | $ 378 |
Post-modification outstanding recorded investment | $ | $ 2,973 | $ 387 |
Commercial [Member] | Owner occupied RE [Member] | ||
Summary of concession at the time of modification and the recorded investment in TDRs before and after their modification | ||
Renewals deemed a concession | 1 | |
Reduced or deferred payments | ||
Converted to interest only | ||
Maturity date extensions | ||
Total number of loans | 1 | |
Pre-modification outstanding recorded investment | $ | $ 506 | |
Post-modification outstanding recorded investment | $ | $ 592 | |
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 a concession | 4 | 1 |
Reduced or deferred payments | 1 | |
Converted to interest only | ||
Maturity date extensions | ||
Total number of loans | 4 | 2 |
Pre-modification outstanding recorded investment | $ | $ 1,207 | $ 378 |
Post-modification outstanding recorded investment | $ | $ 1,532 | $ 387 |
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 a concession | 2 | |
Reduced or deferred payments | ||
Converted to interest only | ||
Maturity date extensions | ||
Total number of loans | 2 | |
Pre-modification outstanding recorded investment | $ | $ 549 | |
Post-modification outstanding recorded investment | $ | $ 669 | |
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 a concession | ||
Reduced or deferred payments | 1 | |
Converted to interest only | ||
Maturity date extensions | ||
Total number of loans | 1 | |
Pre-modification outstanding recorded investment | $ | $ 180 | |
Post-modification outstanding recorded investment | $ | $ 180 |
Troubled Debt Restructurings 45
Troubled Debt Restructurings (Details Textual) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2018USD ($)Investments | Jun. 30, 2017 | Dec. 31, 2017USD ($)Investments | |
Troubled Debt Restructurings (Textual) | |||
Total number of loans classified under troubled debt restructurings (TDRs) | Investments | 28 | 21 | |
Total sum of loans classified as troubled debt restructurings (TDRs) | $ | $ 10,600 | $ 7,800 | |
Number of months previous loan payment defaulted | 12 months | 12 months |
Derivative Financial Instrume46
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Mortgage loan interest rate lock commitments [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional | $ 25,463 | $ 15,430 |
Balance Sheet Location, description | Other assets | Other assets |
Fair Value, Asset/(Liability) | $ 320 | $ 196 |
MBS forward sales commitments [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional | $ 16,500 | $ 10,750 |
Balance Sheet Location, description | Other liabilities | Other liabilities |
Fair Value, Asset/(Liability) | $ (60) | $ (28) |
Total derivative financial instruments [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional | 41,963 | 26,180 |
Fair Value, Asset/(Liability) | $ 260 | $ 168 |
Fair Value Accounting (Details)
Fair Value Accounting (Details) - Fair Value on a Recurring Basis [Member] - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Securities available for sale | ||
US government agencies | $ 8,714 | $ 8,653 |
SBA securities | 3,769 | 4,063 |
State and political subdivisions | 8,472 | 11,396 |
Asset-backed securities | 6,691 | |
Mortgage-backed securities | 42,421 | 43,491 |
Mortgage loans held for sale | 8,075 | 11,790 |
Interest rate lock commitments | 320 | 196 |
Total assets measured at fair value on a recurring basis | 78,462 | 79,589 |
Liabilities | ||
MBS forward sales commitments | 60 | 28 |
Total liabilities measured at fair value on a recurring basis | 60 | 28 |
Level 1 [Member] | ||
Securities available for sale | ||
US government agencies | ||
SBA securities | ||
State and political subdivisions | ||
Asset-backed securities | ||
Mortgage-backed securities | ||
Mortgage loans held for sale | ||
Interest rate lock commitments | ||
Total assets measured at fair value on a recurring basis | ||
Liabilities | ||
MBS forward sales commitments | ||
Total liabilities measured at fair value on a recurring basis | ||
Level 2 [Member] | ||
Securities available for sale | ||
US government agencies | 8,714 | 8,653 |
SBA securities | 3,769 | 4,063 |
State and political subdivisions | 8,472 | 11,396 |
Asset-backed securities | 6,691 | |
Mortgage-backed securities | 42,421 | 43,491 |
Mortgage loans held for sale | 8,075 | 11,790 |
Interest rate lock commitments | 320 | 196 |
Total assets measured at fair value on a recurring basis | 78,462 | 79,589 |
Liabilities | ||
MBS forward sales commitments | 60 | 28 |
Total liabilities measured at fair value on a recurring basis | 60 | 28 |
Level 3 [Member] | ||
Securities available for sale | ||
US government agencies | ||
SBA securities | ||
State and political subdivisions | ||
Asset-backed securities | ||
Mortgage-backed securities | ||
Mortgage loans held for sale | ||
Interest rate lock commitments | ||
Total assets measured at fair value on a recurring basis | ||
Liabilities | ||
MBS forward sales commitments | ||
Total liabilities measured at fair value on a recurring basis |
Fair Value Accounting (Details
Fair Value Accounting (Details 1) - Fair Value on a Nonrecurring Basis [Member] - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Assets | ||
Impaired loans | $ 11,648 | $ 8,769 |
Other real estate owned | 117 | 242 |
Total assets measured at fair value on a nonrecurring basis | 11,765 | 9,011 |
Level 1 [Member] | ||
Assets | ||
Impaired loans | ||
Other real estate owned | ||
Total assets measured at fair value on a nonrecurring basis | ||
Level 2 [Member] | ||
Assets | ||
Impaired loans | 2,920 | 2,685 |
Other real estate owned | 23 | 148 |
Total assets measured at fair value on a nonrecurring basis | 2,943 | 2,833 |
Level 3 [Member] | ||
Assets | ||
Impaired loans | 8,728 | 6,084 |
Other real estate owned | 94 | 94 |
Total assets measured at fair value on a nonrecurring basis | $ 8,822 | $ 6,178 |
Fair Value Accounting (Detail49
Fair Value Accounting (Details 2) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | |
Financial Assets: | |||
Other investments, at cost, Carrying Amount | $ 3,059 | $ 4,462 | |
Loans, Carrying Amount | [1] | 1,502,229 | 1,359,101 |
Other investments, at cost, Fair Value | 3,059 | 4,462 | |
Loans, Fair Value | [1] | 1,483,215 | 1,363,915 |
Financial Liabilities: | |||
Deposits, Carrying Amount | 1,567,982 | 1,381,123 | |
FHLB and other borrowings, Carrying Amount | 28,600 | 67,200 | |
Junior subordinated debentures, Carrying Amount | 13,403 | 13,403 | |
Deposits, Fair Value | 1,430,788 | 1,269,462 | |
FHLB and other borrowings, Fair Value | 28,792 | 67,890 | |
Junior subordinated debentures, Fair Value | 14,148 | 13,166 | |
Level 1 [Member] | Estimate of Fair Values [Member] | |||
Financial Assets: | |||
Other investments, at cost, Fair Value | |||
Loans, Fair Value | [1] | ||
Financial Liabilities: | |||
Deposits, Fair Value | |||
FHLB and other borrowings, Fair Value | |||
Junior subordinated debentures, Fair Value | |||
Level 2 [Member] | Estimate of Fair Values [Member] | |||
Financial Assets: | |||
Other investments, at cost, Fair Value | |||
Loans, Fair Value | [1] | ||
Financial Liabilities: | |||
Deposits, Fair Value | 1,430,788 | 1,269,462 | |
FHLB and other borrowings, Fair Value | 28,792 | 67,890 | |
Junior subordinated debentures, Fair Value | 14,148 | 13,166 | |
Level 3 [Member] | Estimate of Fair Values [Member] | |||
Financial Assets: | |||
Other investments, at cost, Fair Value | 3,059 | 4,462 | |
Loans, Fair Value | [1] | 1,483,215 | 1,363,915 |
Financial Liabilities: | |||
Deposits, Fair Value | |||
FHLB and other borrowings, Fair Value | |||
Junior subordinated debentures, Fair Value | |||
[1] | Carrying amount is net of the allowance for loan losses and previously presented impaired loans. In accordance with the prospective adoption of ASU No. 2016-01, the fair value of loans as of June 30, 2018 was measured using an exit price notion. The fair value of loans as of December 31, 2017 was measured using an entry price notion. |
Fair Value Accounting (Detail50
Fair Value Accounting (Details Textual) | 6 Months Ended |
Jun. 30, 2018 | |
Impaired Loans [Member] | |
Fair Value Accounting (Textual) | |
Fair value appraisal value, description | The Company reviews the third party appraisal for appropriateness and adjusts the value downward to consider selling and closing costs, which typically range from 7% - 10% of the appraised value. |
OREO [Member] | |
Fair Value Accounting (Textual) | |
Fair value appraisal value, description | The Company reviews the third party appraisal for appropriateness and adjusts the value downward to consider selling and closing costs, which typically range from 7% to 10% of the appraised value. |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Numerator: | ||||
Net income available to common shareholders | $ 5,510 | $ 3,604 | $ 10,724 | $ 6,716 |
Denominator: | ||||
Weighted-average common shares outstanding - basic | 7,370,709 | 6,986,948 | 7,353,867 | 6,713,608 |
Common stock equivalents | 380,437 | 379,260 | 385,215 | 385,773 |
Weighted-average common shares outstanding - diluted | 7,751,146 | 7,366,208 | 7,739,082 | 7,099,381 |
Earnings per common share: | ||||
Basic | $ 0.75 | $ 0.52 | $ 1.46 | $ 1 |
Diluted | $ 0.71 | $ 0.49 | $ 1.39 | $ 0.95 |
Earnings Per Common Share (De52
Earnings Per Common Share (Details Textual) - shares | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Common Share (Textual) | ||
Antidilutive securities excluded from computation of earnings per share, amount | 166,172 | 120,681 |
Reportable Segments (Details)
Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||
Interest income | $ 18,535 | $ 14,931 | $ 35,713 | $ 28,890 | |
Interest expense | 3,923 | 2,579 | 7,060 | 4,931 | |
Net interest income (loss) | 14,612 | 12,352 | 28,653 | 23,959 | |
Provision for loan losses | 400 | 500 | 900 | 1,000 | |
Noninterest income | 2,771 | 2,562 | 5,192 | 4,614 | |
Noninterest expense | 9,979 | 8,762 | 19,184 | 17,123 | |
Net income (loss) before taxes | 7,004 | 5,652 | 13,761 | 10,450 | |
Income tax provision (benefit) | 1,494 | 2,048 | 3,037 | 3,734 | |
Net income (loss) | 5,510 | 3,604 | 10,724 | 6,716 | |
Total assets | 1,787,784 | 1,539,226 | 1,787,784 | 1,539,226 | $ 1,624,625 |
Commercial and Retail Banking [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Interest income | 18,437 | 14,851 | 35,515 | 28,744 | |
Interest expense | 3,762 | 2,442 | 6,782 | 4,665 | |
Net interest income (loss) | 14,675 | 12,409 | 28,733 | 24,079 | |
Provision for loan losses | 400 | 500 | 900 | 1,000 | |
Noninterest income | 1,142 | 959 | 2,235 | 1,954 | |
Noninterest expense | 8,754 | 7,667 | 16,935 | 15,114 | |
Net income (loss) before taxes | 6,663 | 5,201 | 13,133 | 9,919 | |
Income tax provision (benefit) | 1,422 | 1,877 | 2,906 | 3,530 | |
Net income (loss) | 5,241 | 3,324 | 10,227 | 6,389 | |
Total assets | 1,777,952 | 1,527,837 | 1,777,952 | 1,527,837 | |
Mortgage Banking [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Interest income | 98 | 80 | 198 | 146 | |
Interest expense | |||||
Net interest income (loss) | 98 | 80 | 198 | 146 | |
Provision for loan losses | |||||
Noninterest income | 1,629 | 1,603 | 2,957 | 2,660 | |
Noninterest expense | 1,165 | 1,035 | 2,129 | 1,883 | |
Net income (loss) before taxes | 562 | 648 | 1,026 | 923 | |
Income tax provision (benefit) | 118 | 240 | 215 | 342 | |
Net income (loss) | 444 | 408 | 811 | 581 | |
Total assets | 9,404 | 10,958 | 9,404 | 10,958 | |
Corporate [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Interest income | 2 | 6 | 4 | 8 | |
Interest expense | 163 | 143 | 282 | 274 | |
Net interest income (loss) | (161) | (137) | (278) | (266) | |
Provision for loan losses | |||||
Noninterest income | |||||
Noninterest expense | 60 | 60 | 120 | 126 | |
Net income (loss) before taxes | (221) | (197) | (398) | (392) | |
Income tax provision (benefit) | (46) | (69) | (84) | (138) | |
Net income (loss) | (175) | (128) | (314) | (254) | |
Total assets | 174,331 | 156,145 | 174,331 | 156,145 | |
Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Interest income | (2) | (6) | (4) | (8) | |
Interest expense | (2) | (6) | (4) | (8) | |
Net interest income (loss) | |||||
Provision for loan losses | |||||
Noninterest income | |||||
Noninterest expense | |||||
Net income (loss) before taxes | |||||
Income tax provision (benefit) | |||||
Net income (loss) | |||||
Total assets | $ (173,903) | $ (155,714) | $ (173,903) | $ (155,714) |
Reportable Segments (Details Te
Reportable Segments (Details Textual) | 6 Months Ended |
Jun. 30, 2018Investments | |
Reportable Segments (Textual) | |
Number of segments | 3 |