Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 29, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | SOUTHERN FIRST BANCSHARES INC | |
Entity Central Index Key | 0001090009 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 7,618,519 | |
Entity Shell Company | false | |
Entity Interactive Data Current | Yes | |
Entity Current Reporting Status | Yes | |
Entity Incorporation State Country Code | SC | |
Entity File Number | 000-27719 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Cash and cash equivalents: | ||
Cash and due from banks | $ 44,349 | $ 17,434 |
Federal funds sold | 19,215 | 35,882 |
Interest-bearing deposits with banks | 70,959 | 19,557 |
Total cash and cash equivalents | 134,523 | 72,873 |
Investment securities: | ||
Investment securities available for sale | 89,427 | 74,905 |
Other investments | 3,307 | 4,121 |
Total investment securities | 92,734 | 79,026 |
Mortgage loans held for sale | 40,630 | 9,241 |
Loans | 1,838,427 | 1,677,332 |
Less allowance for loan losses | (15,848) | (15,762) |
Loans, net | 1,822,579 | 1,661,570 |
Bank owned life insurance | 39,730 | 34,010 |
Property and equipment, net | 54,846 | 32,430 |
Deferred income taxes | 8,970 | 4,020 |
Other assets | 7,614 | 7,444 |
Total assets | 2,201,626 | 1,900,614 |
LIABILITIES | ||
Deposits | 1,899,295 | 1,648,136 |
Federal Home Loan Bank advances and other borrowings | 25,000 | 50,000 |
Subordinated debentures | 35,887 | 13,403 |
Other liabilities | 42,950 | 15,159 |
Total liabilities | 2,003,132 | 1,726,698 |
SHAREHOLDERS' EQUITY | ||
Preferred stock, par value $.01 per share, 10,000,000 shares authorized | ||
Common stock, par value $.01 per share, 10,000,000 shares authorized, 7,618,519 and 7,466,481 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively | 76 | 75 |
Nonvested restricted stock | (919) | (741) |
Additional paid-in capital | 105,378 | 102,625 |
Accumulated other comprehensive income (loss) | 424 | (917) |
Retained earnings | 93,535 | 72,874 |
Total shareholders' equity | 198,494 | 173,916 |
Total liabilities and shareholders' equity | $ 2,201,626 | $ 1,900,614 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 7,618,519 | 7,466,481 |
Common stock, shares outstanding | 7,618,519 | 7,466,481 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Interest income | ||||
Loans | $ 22,817 | $ 19,159 | $ 65,804 | $ 53,314 |
Investment securities | 576 | 487 | 1,664 | 1,284 |
Federal funds sold and interest-bearing deposits with banks | 663 | 219 | 1,288 | 980 |
Total interest income | 24,056 | 19,865 | 68,756 | 55,578 |
Interest expense | ||||
Deposits | 6,409 | 3,928 | 17,959 | 10,191 |
Borrowings | 368 | 436 | 1,161 | 1,232 |
Total interest expense | 6,777 | 4,364 | 19,120 | 11,423 |
Net interest income | 17,279 | 15,501 | 49,636 | 44,155 |
Provision for loan losses | 650 | 400 | 1,250 | 1,300 |
Net interest income after provision for loan losses | 16,629 | 15,101 | 48,386 | 42,855 |
Noninterest income | ||||
Mortgage banking income | 3,055 | 1,354 | 7,741 | 4,311 |
Service fees on deposit accounts | 271 | 257 | 802 | 769 |
ATM and debit card income | 464 | 381 | 1,287 | 1,085 |
Income from bank owned life insurance | 282 | 221 | 720 | 662 |
Other income | 324 | 320 | 930 | 898 |
Total noninterest income | 4,396 | 2,533 | 11,480 | 7,725 |
Noninterest expenses | ||||
Compensation and benefits | 7,668 | 6,599 | 21,850 | 18,808 |
Occupancy | 1,416 | 1,350 | 4,099 | 3,763 |
Outside service and data processing costs | 1,073 | 841 | 3,078 | 2,400 |
Insurance | 145 | 376 | 743 | 987 |
Professional fees | 399 | 275 | 1,252 | 1,208 |
Marketing | 237 | 215 | 733 | 652 |
Other | 546 | 532 | 1,745 | 1,554 |
Total noninterest expenses | 11,484 | 10,188 | 33,500 | 29,372 |
Income before income tax expense | 9,541 | 7,446 | 26,366 | 21,208 |
Income tax expense | 2,129 | 1,664 | 5,705 | 4,702 |
Net income available to common shareholders | $ 7,412 | $ 5,782 | $ 20,661 | $ 16,506 |
Earnings per common share | ||||
Basic | $ 0.98 | $ 0.78 | $ 2.75 | $ 2.24 |
Diluted | $ 0.95 | $ 0.75 | $ 2.66 | $ 2.13 |
Weighted average common shares outstanding | ||||
Basic | 7,548,184 | 7,400,174 | 7,501,337 | 7,369,473 |
Diluted | 7,780,504 | 7,746,205 | 7,759,611 | 7,741,483 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 7,412 | $ 5,782 | $ 20,661 | $ 16,506 |
Unrealized gain (loss) on securities available for sale: | ||||
Unrealized holding gain (loss) arising during the period, pretax | 301 | (325) | 1,705 | (1,475) |
Tax (expense) benefit | (64) | 68 | (358) | 308 |
Reclassification of realized (gain) loss | (2) | (8) | 1 | |
Tax expense | 1 | 2 | ||
Other comprehensive income (loss) | 236 | (257) | 1,341 | (1,166) |
Comprehensive income | $ 7,648 | $ 5,525 | $ 22,002 | $ 15,340 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Common stock [Member] | Preferred stock [Member] | Nonvested Restricted Stock [Member] | Additional paid-in capital [Member] | Accumulated other comprehensive loss [Member] | Retained earnings [Member] | Total |
Balance at Dec. 31, 2017 | $ 73 | $ (502) | $ 99,986 | $ (456) | $ 50,585 | $ 149,686 | |
Balance, shares at Dec. 31, 2017 | 7,347,851 | ||||||
Net income | 16,506 | 16,506 | |||||
Proceeds from exercise of stock options | $ 1 | 809 | 810 | ||||
Proceeds from exercise of stock options, shares | 89,419 | ||||||
Issuance of restricted stock | (501) | 501 | |||||
Issuance of restricted stock, shares | 11,500 | ||||||
Compensation expense related to restricted stock, net of tax | 233 | 233 | |||||
Compensation expense related to stock options, net of tax | 875 | 875 | |||||
Other comprehensive income | (1,166) | (1,166) | |||||
Balance at Sep. 30, 2018 | $ 74 | (770) | 102,171 | (1,622) | 67,091 | 166,944 | |
Balance, shares at Sep. 30, 2018 | 7,448,770 | ||||||
Balance at Jun. 30, 2018 | $ 74 | (853) | 101,691 | (1,365) | 61,309 | 160,856 | |
Balance, shares at Jun. 30, 2018 | 7,425,672 | ||||||
Net income | 5,782 | 5,782 | |||||
Proceeds from exercise of stock options | 172 | 172 | |||||
Proceeds from exercise of stock options, shares | 23,098 | ||||||
Issuance of restricted stock | |||||||
Issuance of restricted stock, shares | |||||||
Compensation expense related to restricted stock, net of tax | 83 | 83 | |||||
Compensation expense related to stock options, net of tax | 308 | 308 | |||||
Other comprehensive income | (257) | (257) | |||||
Balance at Sep. 30, 2018 | $ 74 | (770) | 102,171 | (1,622) | 67,091 | 166,944 | |
Balance, shares at Sep. 30, 2018 | 7,448,770 | ||||||
Balance at Dec. 31, 2018 | $ 75 | (741) | 102,625 | (917) | 72,874 | 173,916 | |
Balance, shares at Dec. 31, 2018 | 7,466,481 | ||||||
Net income | 20,661 | 20,661 | |||||
Proceeds from exercise of stock options | $ 1 | 1,315 | 1,316 | ||||
Proceeds from exercise of stock options, shares | 137,338 | ||||||
Issuance of restricted stock | (490) | 490 | |||||
Issuance of restricted stock, shares | 14,700 | ||||||
Compensation expense related to restricted stock, net of tax | 312 | 312 | |||||
Compensation expense related to stock options, net of tax | 948 | 948 | |||||
Other comprehensive income | 1,341 | 1,341 | |||||
Balance at Sep. 30, 2019 | $ 76 | (919) | 105,378 | 424 | 93,535 | 198,494 | |
Balance, shares at Sep. 30, 2019 | 7,618,519 | ||||||
Balance at Jun. 30, 2019 | $ 76 | (887) | 104,354 | 188 | 86,123 | 189,854 | |
Balance, shares at Jun. 30, 2019 | 7,557,923 | ||||||
Net income | 7,412 | 7,412 | |||||
Proceeds from exercise of stock options | 557 | 557 | |||||
Proceeds from exercise of stock options, shares | 56,596 | ||||||
Issuance of restricted stock | (143) | 143 | |||||
Issuance of restricted stock, shares | 4,000 | ||||||
Compensation expense related to restricted stock, net of tax | 111 | 111 | |||||
Compensation expense related to stock options, net of tax | 324 | 324 | |||||
Other comprehensive income | 236 | 236 | |||||
Balance at Sep. 30, 2019 | $ 76 | $ (919) | $ 105,378 | $ 424 | $ 93,535 | $ 198,494 | |
Balance, shares at Sep. 30, 2019 | 7,618,519 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating activities | ||
Net income | $ 20,661 | $ 16,506 |
Adjustments to reconcile net income to cash provided by (used for) operating activities: | ||
Provision for loan losses | 1,250 | 1,300 |
Depreciation and other amortization | 1,390 | 1,303 |
Accretion and amortization of securities discounts and premium, net | 293 | 341 |
(Gain) loss on sale of investment securities available for sale | (8) | 1 |
Net change in operating leases | 534 | |
Compensation expense related to stock options and restricted stock grants | 1,260 | 1,108 |
Gain on sale of loans held for sale | (7,456) | (4,093) |
Loans originated and held for sale | (276,018) | (161,272) |
Proceeds from sale of loans held for sale | 252,085 | 167,857 |
Increase in cash surrender value of bank owned life insurance | (720) | (662) |
Increase in deferred tax asset | (5,306) | (3,906) |
Increase in other assets, net | (170) | (303) |
Increase in other liabilities | 11,109 | 6,164 |
Net cash provided by (used for) operating activities | (1,096) | 24,344 |
Increase (decrease) in cash realized from: | ||
Increase in loans, net | (162,259) | (233,814) |
Purchase of property and equipment | (7,658) | (1,739) |
Purchase of investment securities: | ||
Available for sale | (25,383) | (13,903) |
Other investments | (6,782) | |
Payments and maturities, calls and repayments of investment securities: | ||
Available for sale | 12,273 | 6,962 |
Other investments | 814 | 6,315 |
Proceeds from sale of investment securities available for sale | 5,841 | |
Proceeds from sale of real estate owned | 132 | |
Purchase of life insurance policies | (5,000) | |
Net cash used for investing activities | (187,213) | (236,988) |
Increase (decrease) in cash realized from: | ||
Increase in deposits, net | 251,159 | 208,360 |
Decrease in Federal Home Loan Bank advances and other borrowings, net | (25,000) | 1,300 |
Increase in subordinated debt | 22,484 | |
Proceeds from the exercise of stock options and warrants | 1,316 | 810 |
Net cash provided by financing activities | 249,959 | 210,470 |
Net increase in cash and cash equivalents | 61,650 | (2,174) |
Cash and cash equivalents at beginning of the period | 72,873 | 92,165 |
Cash and cash equivalents at end of the period | 134,523 | 89,991 |
Cash paid for | ||
Interest | 18,752 | 10,824 |
Income taxes | 5,307 | 3,906 |
Schedule of non-cash transactions | ||
Unrealized gain (loss) on securities, net of income taxes | 1,347 | (1,167) |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | $ 17,290 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Nature of Business and Basis of Presentation | NOTE 1 – Nature of Business and Basis of Presentation Business Activity Southern First Bancshares, Inc. (the “Company”) is a South Carolina corporation that owns all of the capital stock of Southern First Bank (the “Bank”) and all of the stock of Greenville First Statutory Trust I and II (collectively, the “Trusts”). The Trusts are special purpose non-consolidated entities organized for the sole purpose of issuing trust preferred securities. The Bank's primary federal regulator is the Federal Deposit Insurance Corporation (the “FDIC”). The Bank is also regulated and examined by the South Carolina Board of Financial Institutions. The Bank is primarily engaged in the business of accepting demand deposits and savings deposits insured by the FDIC, and providing commercial, consumer and mortgage loans to the general public. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine month periods ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. 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, 2018 as filed with the Securities and Exchange Commission (“SEC”) on February 28, 2019. 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 10 – 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, or GAAP, 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. Subordinated Debentures On September 30, 2019, the Company entered into Subordinated Note Purchase Agreements (collectively, the “Purchase Agreement”) with certain qualified institutional buyers and accredited investors (the “Purchasers”) pursuant to which the Company sold and issued $23.0 million in aggregate principal amount of its 4.75% Fixed-to-Floating Rate Subordinated Notes due 2029 (the “Notes”). The Notes were offered and sold by the Company to eligible purchasers in a private offering in reliance on the exemption from the registration requirements of Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”) and the provisions of Regulation D promulgated thereunder (the “Private Placement”). The Company intends to use the proceeds from the offering, which were approximately $22.5 million, for general corporate purposes, including providing capital to the Bank and supporting organic growth. The Notes have a ten-year term and, from and including the date of issuance to but excluding September 30, 2024, will bear interest at a fixed annual rate of 4.75%, payable semi-annually in arrears, for the first five years of the term. From and including September 30, 2024 to but excluding the maturity date or early redemption date, the interest rate shall reset quarterly to an interest rate per annum equal to a benchmark rate (which is expected to be Three-Month Term SOFR) plus 340.8 basis points, payable quarterly in arrears. As provided in the Notes, the interest rate on the Notes during the applicable floating rate period may be determined based on a rate other than Three-Month Term SOFR. The Notes are redeemable, in whole or in part, on September 30, 2024, on any interest payment date thereafter, and at any time upon the occurrence of certain events. The Purchase Agreement contains certain customary representations, warranties and covenants made by the Company, on the one hand, and the Purchasers, severally and not jointly, on the other hand. On September 30, 2019, in connection with the sale and issuance of the Notes, the Company entered into a Registration Rights Agreement (the “Registration Rights Agreement”) with the Purchasers. Under the terms of the Registration Rights Agreement, the Company has agreed to take certain actions to provide for the exchange of the Notes for subordinated notes that are registered under the Securities Act and have substantially the same terms as the Notes (the “Exchange Notes”). Under certain circumstances, if the Company fails to meet its obligations under the Registration Rights Agreement, it would be required to pay additional interest to the holders of the Notes. The Notes were issued under an Indenture, dated September 30, 2019 (the “Indenture”), by and between the Company and UMB Bank, National Association, as trustee. The Notes are not subject to any sinking fund and are not convertible into or, other than with respect to the Exchange Notes, exchangeable for any other securities or assets of the Company or any of its subsidiaries. The Notes are not subject to redemption at the option of the holder. The Notes are unsecured, subordinated obligations of the Company only and are not obligations of, and are not guaranteed by, any subsidiary of the Company. The Notes rank junior in right to payment to the Company’s current and future senior indebtedness. The Notes are intended to qualify as Tier 2 capital for regulatory capital purposes for the Company. 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. On October 4, 2019, the Company sold its Health Savings Account (“HSA”) deposit accounts, which totaled $6.2 million at September 30, 2019, to a nationwide HSA servicer and recognized a gain of approximately $745,000 from the sale. Also subsequent to September 30, 2019, the Company sold $30.3 million of investment securities from its existing investment portfolio, recognizing a gain of approximately $718,000. On October 11, 2019, the Company paid off $25.0 million of FHLB advances with an average cost of 3.36% and incurred a prepayment penalty of $1.5 million. Adoption of New Accounting Standards In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” . The guidance in the update supersedes the requirements in ASC Topic 840, Leases. The guidance is intended to increase transparency and comparability among organizations by recognizing right-of-use assets and lease liabilities on the balance sheet. For public companies, this update was effective for interim and annual periods beginning after December 15, 2018. The Company adopted this guidance in the first quarter of 2019. Upon adoption, the Company elected a practical expedient which allows existing leases to retain their classification as operating leases. The Company has also elected to not recognize right-of-use assets and lease liabilities arising from short-term leases. Implementation of the guidance resulted in the recording of a right-of-use asset and lease liability on the balance sheet; however it does not have a material impact on the Company's other consolidated financial statements. See additional disclosures in Note 8. Newly Issued, But Not Yet Effective Accounting Standards In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” . 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. ASU 2016-13 is effective for all annual and interim periods beginning after December 31, 2019, with early adoption permitted for fiscal years beginning after December 15, 2018. Adoption will be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company has established a team of individuals from credit, finance and risk management to evaluate the requirements of the new standard and the impact it will have on its processes. The implementation plan has progressed through the initial design, build, and testing phase and, in the first quarter of 2019, the Company began running parallel models. While the Company continues to evaluate the impact the new guidance will have on its financial position and results of operations, it currently expects the new guidance may result in an increase to its allowance for credit losses given the change to estimated losses over the contractual life of the loan portfolio. The amount of any change to the allowance is still under review and will depend, in part, upon the composition of our loan portfolio at the adoption date as well as economic conditions and loss forecasts at that date. On October 16, 2019, FASB voted to delay the effective date of this ASU for smaller reporting companies, such as the Company, until fiscal years beginning after December 15, 2022. 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 | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | NOTE 2 – Investment Securities The amortized costs and fair value of investment securities are as follows: Sep tember 30, 2019 Amortized Gross Unrealized Fair (dollars in thousands) Cost Gains Losses Value Available for sale US government agencies $ 13,482 286 3 13,765 SBA securities 3,741 83 20 3,804 State and political subdivisions 9,012 228 - 9,240 Asset-backed securities 12,364 12 103 12,273 Mortgage-backed securities FHLMC 12,704 48 33 12,719 FNMA 32,567 170 126 32,611 GNMA 5,020 13 18 5,015 Total mortgage-backed securities 50,291 231 177 50,345 Total investment securities available for sale $ 88,890 840 303 89,427 De cember 31, 2018 Amortized Gross Unrealized Fair Cost Gains Losses Value Available for sale US government agencies $ 8,975 1 194 8,782 SBA securities 3,628 - 103 3,525 State and political subdivisions 8,371 48 63 8,356 Asset-backed securities 9,595 12 49 9,558 Mortgage-backed securities FHLMC 12,258 87 242 12,103 FNMA 29,068 25 551 28,542 GNMA 4,170 1 132 4,039 Total mortgage-backed securities 45,496 113 925 44,684 Total $ 76,065 174 1,334 74,905 Contractual maturities and yields on the Company’s investment securities at September 30, 2019 and December 31, 2018 are shown in the following table. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. September 30, 2019 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 $ - - 3,980 2.09 % 3,703 2.61 % 6,082 3.18 % 13,765 2.71 % SBA securities - - - - 657 2.80 % 3,147 2.77 % 3,804 2.77 % State and political subdivisions - - 1,533 3.00 % 3,765 2.93 % 3,942 2.87 % 9,240 2.92 % Asset-backed securities - - - - 1,601 2.73 % 10,672 2.91 % 12,273 2.89 % Mortgage-backed securities - - 4,413 1.97 % 8,666 2.17 % 37,266 2.42 % 50,345 2.34 % Total $ - - 9,926 2.18 % 18,392 2.48 % 61,109 2.63 % 89,427 2.55 % December 31, 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 $ - - 2,665 2.12 % 6,117 2.77 % - - 8,782 2.57 % SBA securities - - - - - - 3,525 2.72 % 3,525 2.72 % State and political subdivisions - - 819 2.60 % 4,637 3.04 % 2,900 2.88 % 8,356 2.94 % Asset-backed securities - - - - 1,862 3.22 % 7,696 3.29 % 9,558 3.27 % Mortgage-backed securities - - 5,094 1.89 % 9,763 2.22 % 29,827 2.70 % 44,684 2.50 % Total $ - - 8,578 2.03 % 22,379 2.62 % 43,948 2.81 % 74,905 2.67 % The tables below summarize gross unrealized losses on investment securities and the fair market value of the related securities at September 30, 2019 and December 31, 2018, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position. September 30, 2019 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 1 $ 498 $ 2 1 $ 500 $ 1 2 $ 998 $ 3 SBA securities - - - 1 557 20 1 557 20 Asset-backed securities 5 7,757 87 2 3,046 16 7 10,803 103 Mortgage-backed securities FHLMC 6 6,394 8 5 3,956 25 11 10,350 33 FNMA 11 11,950 34 11 10,236 92 22 22,186 126 GNMA 1 1,249 1 2 1,742 17 3 2,991 18 Total 24 $ 27,848 $ 132 22 $ 20,037 $ 171 46 $ 47,885 $ 303 December 31, 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 1 $ 1,246 $ 3 8 $ 7,035 $ 191 9 $ 8,281 $ 194 SBA securities - - - 2 3,525 103 2 3,525 103 State and political subdivisions - - - 7 2,829 63 7 2,829 63 Asset-backed securities 4 6,707 49 - - - 4 6,707 49 Mortgage-backed securities FHLMC - - - 10 7,402 242 10 7,402 242 FNMA 2 2,689 6 23 22,814 545 25 25,503 551 GNMA 1 1,104 6 3 2,919 126 4 4,023 132 Total 8 $ 11,746 $ 64 53 $ 46,524 $ 1,270 61 $ 58,270 $ 1,334 At September 30, 2019, the Company had 24 individual investments with a fair market value of $27.8 million that were in an unrealized loss position for less than 12 months and 22 individual investments with a fair market value of $20.0 million that were in an unrealized loss position for 12 months or longer. The unrealized losses were primarily attributable to changes in interest rates, rather than deterioration in credit quality. The individual securities are each investment grade securities. The Company considers the length of time and extent to which the fair value of available-for-sale debt securities have been less than cost to conclude that such securities are not other-than-temporarily impaired. The Company also considers other factors such as the financial condition of the issuer including credit ratings and specific events affecting the operations of the issuer, volatility of the security, underlying assets that collateralize the debt security, and other industry and macroeconomic conditions. As the Company has no intent to sell securities with unrealized losses and it is not more-likely-than-not that the Company will be required to sell these securities before recovery of amortized cost, the Company has concluded that these securities are not impaired on an other-than-temporary basis. Other investments are comprised of the following and are recorded at cost which approximates fair value. (dollars in thousands) September 30, 2019 December 31, 2018 Federal Home Loan Bank stock $ 2,774 3,587 Other investments 130 131 Investment in Trust Preferred securities 403 403 Total other investments $ 3,307 4,121 The Company has evaluated the Federal Home Loan Bank (“FHLB”) stock for impairment and determined that the investment in the FHLB stock is not other than temporarily impaired as of September 30, 2019 and that ultimate recoverability of the par value of this investment is probable. All of the FHLB stock is used to collateralize advances with the FHLB. |
Mortgage Loans Held for Sale
Mortgage Loans Held for Sale | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019, mortgage loans held for sale totaled $40.6 million compared to $9.2 million at December 31, 2018. The $31.4 million increase in mortgage loans held for sale during the first nine months of 2019 was driven by an increase in volume of mortgage loans originated and sold in the favorable mortgage rate environment. 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 unrealized gains and losses associated with the loans held for sale and the realized and unrealized 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 updates the reserve estimate on a quarterly basis during the estimated life of the loan. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2019 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [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 $3.1 million as of September 30, 2019 and $2.8 million as of December 31, 2018. September 30, 2019 December 31, 2018 (dollars in thousands) Amount % of Total Amount % of Total Commercial Owner occupied RE $ 392,896 21.4 % $ 367,018 21.9 % Non-owner occupied RE 481,865 26.2 % 404,296 24.1 % Construction 75,710 4.1 % 84,411 5.0 % Business 290,154 15.8 % 272,980 16.3 % Total commercial loans 1,240,625 67.5 % 1,128,705 67.3 % Consumer Real estate 346,512 18.8 % 320,943 19.1 % Home equity 174,611 9.5 % 165,937 9.9 % Construction 49,548 2.7 % 37,925 2.3 % Other 27,131 1.5 % 23,822 1.4 % Total consumer loans 597,802 32.5 % 548,627 32.7 % Total gross loans, net of deferred fees 1,838,427 100.0 % 1,677,332 100.0 % Less—allowance for loan losses (15,848 ) (15,762 ) Total loans, net $ 1,822,579 $ 1,661,570 Maturities and Sensitivity of Loans to Changes in Interest Rates The information in the following tables summarizes the loan maturity distribution by type and related interest rate characteristics based on the contractual maturities of individual loans, including loans which may be subject to renewal at their contractual maturity. Renewal of such loans is subject to review and credit approval, as well as modification of terms upon maturity. Actual repayments of loans may differ from the maturities reflected below, because borrowers have the right to prepay obligations with or without prepayment penalties. September 30, 2019 After one One year but within After five (dollars in thousands) or less five years years Total Commercial Owner occupied RE $ 37,933 148,367 206,596 392,896 Non-owner occupied RE 58,945 263,046 159,874 481,865 Construction 29,096 22,696 23,918 75,710 Business 74,851 143,215 72,088 290,154 Total commercial loans 200,825 577,324 462,476 1,240,625 Consumer Real estate 25,426 81,161 239,925 346,512 Home equity 12,154 28,425 134,032 174,611 Construction 14,249 1,057 34,242 49,548 Other 6,381 16,455 4,295 27,131 Total consumer loans 58,210 127,098 412,494 597,802 Total gross loans, net of deferred fees $ 259,035 704,422 874,970 1,838,427 Loans maturing after one year with: Fixed interest rates $ 1,214,368 Floating interest rates 365,024 December 31, 2018 After one One year but within After five (dollars in thousands) or less five years years Total Commercial Owner occupied RE $ 20,839 165,436 180,743 367,018 Non-owner occupied RE 43,000 227,454 133,842 404,296 Construction 22,941 33,045 28,425 84,411 Business 80,672 128,911 63,397 272,980 Total commercial loans 167,452 554,846 406,407 1,128,705 Consumer Real estate 29,301 70,467 221,175 320,943 Home equity 8,867 24,618 132,452 165,937 Construction 16,006 1,646 20,273 37,925 Other 7,681 11,253 4,888 23,822 Total consumer 61,855 107,984 378,788 548,627 Total gross loan, net of deferred fees $ 229,307 662,830 785,195 1,677,332 Loans maturing after one year with: Fixed interest rates $ 1,100,854 Floating interest rates 347,171 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 loan 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 credit risk; however, still have acceptable credit risk. ● Special mention—A special mention loan has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or the institution’s credit position at some future date. ● Substandard—A substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness, or weaknesses, that may jeopardize the liquidation of the debt. A substandard loan is characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. ● Doubtful—A doubtful loan has all of the weaknesses inherent in one classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of the currently existing facts, conditions and values, highly questionable and improbable. The tables below provide a breakdown of outstanding commercial loans by risk category. September 30, 2019 Owner Non-owner (dollars in thousands) occupied RE occupied RE Construction Business Total Pass $ 389,869 472,762 75,710 283,246 1,221,587 Special mention 729 4,186 - 2,950 7,865 Substandard 2,298 4,917 - 3,958 11,173 Doubtful - - - - - $ 392,896 481,865 75,710 290,154 1,240,625 December 31, 2018 Owner Non-owner (dollars in thousands) occupied RE occupied RE Construction Business Total Pass $ 363,621 400,266 84,411 266,898 1,115,196 Special mention 296 118 - 2,971 3,385 Substandard 3,101 3,912 - 3,111 10,124 Doubtful - - - - - $ 367,018 404,296 84,411 272,980 1,128,705 The following tables provide past due information for outstanding commercial loans and include loans on nonaccrual status as well as accruing TDRs. September 30, 2019 Owner Non-owner (dollars in thousands) occupied RE occupied RE Construction Business Total Current $ 392,053 479,595 75,710 289,682 1,237,040 30-59 days past due 843 102 - 274 1,219 60-89 days past due - 2,168 - - 2,168 Greater than 90 Days - - - 198 198 $ 392,896 481,865 75,710 290,154 1,240,625 December 31, 2018 Owner Non-owner occupied RE occupied RE Construction Business Total Current $ 367,018 404,179 84,411 272,864 1,128,472 30-59 days past due - 117 - 36 153 60-89 days past due - - - - - Greater than 90 Days - - - 80 80 $ 367,018 404,296 84,411 272,980 1,128,705 Consumer The Company manages a consistent process for assessing consumer loan credit quality by monitoring its loan grading trends and past due statistics. All loans are subject to individual risk assessment. The Company’s categories include Pass, Special Mention, Substandard, and Doubtful, which are defined above. Delinquency statistics are also an important indicator of credit quality in the establishment of the allowance for loan losses. The tables below provide a breakdown of outstanding consumer loans by risk category. September 30, 2019 (dollars in thousands) Real estate Home equity Construction Other Total Pass $ 341,367 170,749 49,548 26,843 588,507 Special mention 1,562 665 - 228 2,455 Substandard 3,583 3,197 - 60 6,840 Doubtful - - - - - $ 346,512 174,611 49,548 27,131 597,802 December 31, 2018 (dollars in thousands) Real estate Home equity Construction Other Total Pass $ 314,586 162,626 37,925 23,586 538,723 Special mention 1,792 864 - 139 2,795 Substandard 4,565 2,447 - 97 7,109 Doubtful - - - - - $ 320,943 165,937 37,925 23,822 548,627 The following tables provide past due information for outstanding consumer loans and include loans on nonaccrual status as well as accruing TDRs. September 30, 2019 (dollars in thousands) Real estate Home equity Construction Other Total Current $ 345,720 173,536 49,548 27,064 595,868 30-59 days past due - 363 - 67 430 60-89 days past due 187 482 - - 669 Greater than 90 Days 605 230 - - 835 $ 346,512 174,611 49,548 27,131 597,802 December 31, 2018 (dollars in thousands) Real estate Home equity Construction Other Total Current $ 317,267 165,727 37,925 23,603 544,522 30-59 days past due 2,555 30 - 106 2,691 60-89 days past due 923 - - 113 1,036 Greater than 90 Days 198 180 - - 378 $ 320,943 165,937 37,925 23,822 548,627 As of September 30, 2019 and December 31, 2018, loans 30 days or more past due represented 0.30% and 0.26% of the Company’s total loan portfolio, respectively. Commercial loans 30 days or more past due were 0.19% and 0.01% of the Company’s total loan portfolio as of September 30, 2019 and December 31, 2018, respectively, while consumer loans 30 days or more past due were 0.11% and 0.25% of total loans as of September 30, 2019 and December 31, 2018, 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) September 30, 2019 December 31, 2018 Commercial Owner occupied RE $ - - Non-owner occupied RE 1,963 210 Construction - - Business 198 81 Consumer Real estate 1,637 1,980 Home equity 467 1,006 Construction - - Other - 12 Nonaccruing troubled debt restructurings 2,763 2,541 Total nonaccrual loans, including nonaccruing TDRs 7,028 5,830 Other real estate owned - - Total nonperforming assets $ 7,028 5,830 Nonperforming assets as a percentage of: Total assets 0.32 % 0.31 % Gross loans 0.38 % 0.35 % Total loans over 90 days past due $ 1,033 458 Loans over 90 days past due and still accruing - - Accruing troubled debt restructurings 5,791 6,742 Impaired Loans The table below summarizes key information for impaired loans. The Company’s impaired loans include loans on nonaccrual status and loans modified in a TDR, whether on accrual or nonaccrual status. These impaired loans may have estimated impairment which is included in the allowance for loan losses. The Company’s commercial and consumer impaired loans are evaluated individually to determine the related allowance for loan losses. September 30, 2019 Recorded investment Impaired loans Impaired loans Unpaid with no related with related Related Principal Impaired allowance for allowance for allowance for (dollars in thousands) Balance loans loan losses loan losses loan losses Commercial Owner occupied RE $ 2,787 2,723 2,277 446 75 Non-owner occupied RE 4,474 4,034 2,409 1,625 416 Construction - - - - - Business 2,187 1,724 570 1,154 470 Total commercial 9,448 8,481 5,256 3,225 961 Consumer Real estate 2,674 2,534 1,434 1,100 438 Home equity 2,267 1,654 1,242 412 98 Construction - - - - - Other 150 150 - 150 17 Total consumer 5,091 4,338 2,676 1,662 553 Total $ 14,539 12,819 7,932 4,887 1,514 December 31, 2018 Recorded investment Impaired loans Impaired loans Unpaid with no related with related Related Principal Impaired allowance for allowance for allowance for (dollars in thousands) Balance loans loan losses loan losses loan losses Commercial Owner occupied RE $ 2,827 2,762 2,311 451 75 Non-owner occupied RE 3,321 2,807 603 2,204 558 Construction - - - - - Business 3,745 2,520 515 2,005 895 Total commercial 9,893 8,089 3,429 4,660 1,528 Consumer Real estate 2,993 2,892 1,494 1,398 456 Home equity 1,935 1,421 1,421 - - Construction - - - - - Other 170 170 - 170 30 Total consumer 5,098 4,483 2,915 1,568 486 Total $ 14,991 12,572 6,344 6,228 2,014 The following table provides the average recorded investment in impaired loans and the amount of interest income recognized on impaired loans after impairment by portfolio segment and class. Three months ended Three months ended September 30, 2019 September 30, 2018 Average Recognized Average Recognized recorded interest recorded interest (dollars in thousands) investment income investment income Commercial Owner occupied RE $ 2,728 27 2,786 41 Non-owner occupied RE 4,077 74 3,048 29 Construction - - - - Business 1,738 14 2,965 44 Total commercial 8,543 115 8,799 114 Consumer Real estate 2,876 30 2,850 34 Home equity 1,668 30 1,273 17 Construction - - - - Other 151 2 162 1 Total consumer 4,695 62 4,285 52 Total $ 13,238 177 13,084 166 Nine months ended Nine months ended Year ended September 30, 2019 September 30, 2018 December 31, 2018 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 $ 2,742 96 2,792 103 2,784 142 Non-owner occupied RE 4,139 202 3,070 127 2,860 174 Construction - - - - - - Business 1,766 61 3,031 123 2,883 162 Total commercial 8,647 359 8,893 353 8,527 478 Consumer Real estate 3,062 97 2,871 114 2,930 151 Home equity 1,688 82 1,283 61 1,453 99 Construction - - - - - - Other 154 4 164 4 174 5 Total consumer 4,904 183 4,318 179 4,557 255 Total $ 13,551 542 13,211 532 13,084 733 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 September 30, 2019 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 $ 2,808 4,016 569 3,623 3,104 1,409 318 297 16,144 Provision for loan losses (75 ) 237 (63 ) 588 (93 ) 14 8 34 650 Loan charge-offs - (225 ) - (709 ) - - - (29 ) (963 ) Loan recoveries - - - 8 7 1 - 1 17 Net loan charge-offs - (225 ) - (701 ) 7 1 - (28 ) (946 ) Balance, end of period $ 2,733 4,028 506 3,510 3,018 1,424 326 303 15,848 Net charge-offs to average loans (annualized) 0.21 % Allowance for loan losses to gross loans 0.86 % Allowance for loan losses to nonperforming loans 225.51 % Three months ended September 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 $ 2,699 3,581 544 3,849 3,446 1,431 282 268 16,100 Provision for loan losses 71 379 (44 ) (17 ) 89 (93 ) (7 ) 22 400 Loan charge-offs - - - (536 ) - - - (20 ) (556 ) Loan recoveries - 25 - 89 1 80 - 1 196 Net loan charge-offs - 25 - (447 ) 1 80 - (19 ) (360 ) Balance, end of period $ 2,770 3,985 500 3,385 3,536 1,418 275 271 16,140 Net charge-offs to average loans (annualized) 0.09 % Allowance for loan losses to gross loans 1.00 % Allowance for loan losses to nonperforming loans 270.53 % Nine months ended September 30, 2019 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 $ 2,726 3,811 615 3,616 3,081 1,348 275 290 15,762 Provision for loan losses 117 454 (109 ) 577 (99 ) 174 51 85 1,250 Loan charge-offs (110 ) (239 ) - (709 ) - (100 ) - (82 ) (1,240 ) Loan recoveries - 2 - 26 36 2 - 10 76 Net loan charge-offs (110 ) (237 ) - (683 ) 36 (98 ) - (72 ) (1,164 ) Balance, end of period $ 2,733 4,028 506 3,510 3,018 1,424 326 303 15,848 Net charge-offs to average loans (annualized) 0.09 % Nine months ended September 30, 2018 Commercial Consumer Owner Non-owner occupied occupied Real Home 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 236 857 175 (31 ) 114 (157 ) 65 41 1,300 Loan charge-offs - (234 ) - (655 ) (76 ) (140 ) - (54 ) (1,159 ) Loan recoveries - 132 - 223 3 115 - 3 476 Net loan charge-offs - (102 ) - (432 ) (73 ) (25 ) - (51 ) (683 ) Balance, end of period $ 2,770 3,985 500 3,385 3,536 1,418 275 271 16,140 Net charge-offs to average loans (annualized) 0.06 % The following table disaggregates the allowance for loan losses and recorded investment in loans by impairment methodology. September 30, 2019 Allowance for loan losses Recorded investment in loans (dollars in thousands) Commercial Consumer Total Commercial Consumer Total Individually evaluated $ 961 553 1,514 8,481 4,338 12,819 Collectively evaluated 9,816 4,518 14,334 1,232,144 593,464 1,825,608 Total $ 10,777 5,071 15,848 1,240,625 597,802 1,838,427 December 31, 2018 Allowance for loan losses Recorded investment in loans (dollars in thousands) Commercial Consumer Total Commercial Consumer Total Individually evaluated $ 1,528 486 2,014 8,089 4,483 12,572 Collectively evaluated 9,240 4,508 13,748 1,120,616 544,144 1,664,760 Total $ 10,768 4,994 15,762 1,128,705 548,627 1,677,332 |
Troubled Debt Restructurings
Troubled Debt Restructurings | 9 Months Ended |
Sep. 30, 2019 | |
Troubled Debt Restructurings [Abstract] | |
Troubled Debt Restructurings | NOTE 5 – Troubled Debt Restructurings At September 30, 2019, the Company had 20 loans totaling $8.6 million compared to 26 loans totaling $9.3 million at December 31, 2018, 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 five commercial loans previously classified as TDRs to accrual status. There were no loans determined to be a TDR during the three months ended September 30, 2019 and one commercial non-owner occupied real estate loan with a pre-modification and post-modification balance of $1.3 million was modified with reduced payments and determined to be a TDR during the three months ended September 30, 2018. 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 nine months ended September 30, 2019 and 2018. For the nine months ended September 30, 2019 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 Consumer Home equity 1 - - - 1 $ 832 $ 832 Total loans 1 - - - 1 $ 832 $ 832 For the nine months ended September 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 Total loans 7 - - - 7 $ 2,262 $ 2,793 As of September 30, 2019 and 2018, there were no loans modified as a TDR for which there was a payment default (60 days past due) within 12 months of the restructuring date. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [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 September 30, 2019 and December 31, 2018. September 30, 2019 Fair Value (dollars in thousands) Notional Balance Sheet Location Asset/(Liability) Mortgage loan interest rate lock commitments $ 53,426 Other assets $ 682 MBS forward sales commitments 37,000 Other liabilities (71 ) Total derivative financial instruments $ 90,426 $ 611 December 31, 2018 Fair Value (dollars in thousands) Notional Balance Sheet Location Asset/(Liability) Mortgage loan interest rate lock commitments $ 20,552 Other assets $ 345 MBS forward sales commitments 11,750 Other liabilities (121 ) Total derivative financial instruments $ 32,302 $ 224 |
Fair Value Accounting
Fair Value Accounting | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [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 2018 Annual Report on Form 10-K. 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 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 September 30, 2019 and December 31, 2018. September 30, 2019 (dollars in thousands) Level 1 Level 2 Level 3 Total Assets Securities available for sale US government agencies $ - 13,765 - 13,765 SBA securities - 3,804 - 3,804 State and political subdivisions - 9,240 - 9,240 Asset-backed securities - 12,273 - 12,273 Mortgage-backed securities - 50,345 - 50,345 Mortgage loans held for sale - 40,630 - 40,630 Mortgage loan interest rate lock commitments - 682 - 682 Total assets measured at fair value on a recurring basis $ - 130,739 - 130,739 Liabilities MBS forward sales commitments $ - 71 - 71 Total liabilities measured at fair value on a recurring basis $ - 71 - 71 December 31, 2018 (dollars in thousands) Level 1 Level 2 Level 3 Total Assets Securities available for sale: US government agencies $ - 8,782 - 8,782 SBA securities - 3,525 - 3,525 State and political subdivisions - 8,356 - 8,356 Asset-backed securities - 9,558 - 9,558 Mortgage-backed securities - 44,684 - 44,684 Mortgage loans held for sale - 9,241 - 9,241 Mortgage loan interest rate lock commitments - 345 - 345 Total assets measured at fair value on a recurring basis $ - 84,491 - 84,491 Liabilities MBS forward sales commitments $ - 121 - 121 Total liabilities measured at fair value on a recurring basis $ - 121 - 121 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 September 30, 2019 and December 31, 2018. As of September 30, 2019 (dollars in thousands) Level 1 Level 2 Level 3 Total Assets Impaired loans $ - 4,357 6,948 11,305 Total assets measured at fair value on a nonrecurring basis $ - 4,357 6,948 11,305 As of December 31, 2018 (dollars in thousands) Level 1 Level 2 Level 3 Total Assets Impaired loans $ - 2,190 8,368 10,558 Total assets measured at fair value on a nonrecurring basis $ - 2,190 8,368 10,558 The Company had no liabilities carried at fair value or measured at fair value on a nonrecurring basis. 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 September 30, 2019 and December 31, 2018 are as follows: September 30, 2019 Carrying Fair (dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets: Other investments, at cost $ 3,307 3,307 - - 3,307 Loans 1 1,809,760 1,787,368 - - 1,787,368 Financial Liabilities: Deposits 1,899,295 1,809,500 - 1,809,500 - FHLB and other borrowings 25,000 26,166 - 26,166 - Junior subordinated debentures 35,887 33,567 - 33,567 - December 31, 2018 Carrying Fair (dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets: Other investments, at cost $ 4,121 4,121 - - 4,121 Loans 1 1,648,998 1,618,618 - - 1,618,618 Financial Liabilities: Deposits 1,648,136 1,515,123 - 1,515,123 - FHLB and other borrowings 50,000 50,147 - 50,147 - Junior subordinated debentures 13,403 14,807 - 14,807 - 1 Carrying amount is net of the allowance for loan losses and previously presented impaired loans. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | NOTE 8 – Leases Effective January 1, 2019, the Company adopted ASU 2016-02, “Leases (Topic 842)”. As of September 30, 2019, we lease six of our offices under various operating lease agreements. The lease agreements have maturity dates ranging from February 2022 to September 2029, some of which include options for multiple five-year extensions. The weighted average remaining life of the lease term for these leases was 7.73 years as of September 30, 2019. The discount rate used in determining the lease liability for each individual lease was the FHLB fixed advance rate which corresponded with the remaining lease term as of January 1, 2019 for leases that existed at adoption and as of the lease commencement date for leases subsequently entered in to. The weighted average discount rate for leases was 3.02% as of September 30, 2019. The total operating lease costs were $533,000 and $1.6 million for the three and nine months ended September 30, 2019, respectively. The right-of-use asset, included in property and equipment, and lease liabilities, included in other liabilities, were $16.1 million and $16.7 million as of September 30, 2019, respectively. The right-of-use asset and lease liability are recognized at lease commencement by calculating the present value of lease payments over the lease term. Maturities of lease liabilities as of September 30, 2019 were as follows: Operating (dollars in thousands) Leases 2019 $ 483 2020 1,963 2021 2,008 2022 1,252 2023 1,120 Thereafter 14,227 Total undiscounted lease payments 21,053 Discount effect of cash flows 4,371 Total lease liability $ 16,682 |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings per common share | |
Earnings Per Common Share | NOTE 9 – Earnings Per Common Share The following schedule reconciles the numerators and denominators of the basic and diluted earnings per share computations for the three and nine month periods ended September 30, 2019 and 2018. Dilutive common shares arise from the potentially dilutive effect of the Company’s stock options that were outstanding at September 30, 2019. The assumed conversion of stock options can create a difference between basic and dilutive net income per common share. At September 30, 2019 and 2018, there were 259,656 and 181,892 options, respectively, that were not considered in computing diluted earnings per common share because they were anti-dilutive. Three months ended Nine months ended September 30, September 30, (dollars in thousands, except share data) 2019 2018 2019 2018 Numerator: Net income available to common shareholders $ 7,412 5,782 20,661 16,506 Denominator: Weighted-average common shares outstanding – basic 7,548,184 7,400,174 7,501,337 7,369,473 Common stock equivalents 232,320 346,031 258,274 372,010 Weighted-average common shares outstanding – diluted 7,780,504 7,746,205 7,759,611 7,741,483 Earnings per common share: Basic $ 0.98 0.78 2.75 2.24 Diluted $ 0.95 0.75 2.66 2.13 |
Reportable Segments
Reportable Segments | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Reportable Segments | NOTE 10 – 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. Three months ended Three months ended September 30, 2019 September 30, 2018 Commercial Commercial and Retail Mortgage Elimin- Consol- and Retail Mortgage Elimin- Consol- (dollars in thousands) Banking Banking Corporate ations idated Banking Banking Corporate ation idated Interest income $ 23,830 226 4 (4 ) 24,056 $ 19,775 90 2 (2 ) 19,865 Interest expense 6,628 - 153 (4 ) 6,777 4,212 - 154 (2 ) 4,364 Net interest income (loss) 17,202 226 (149 ) - 17,279 15,563 90 (152 ) - 15,501 Provision for loan losses 650 - - - 650 400 - - - 400 Noninterest income 1,341 3,055 - - 4,396 1,179 1,354 - - 2,533 Noninterest expense 9,529 1,895 60 - 11,484 9,046 1,082 60 - 10,188 Net income (loss) before taxes 8,364 1,386 (209 ) - 9,541 7,296 362 (212 ) - 7,446 Income tax provision (benefit) 1,882 291 (44 ) - 2,129 1,632 76 (44 ) - 1,664 Net income (loss) $ 6,482 1,095 (165 ) - 7,412 $ 5,664 286 (168 ) - 5,782 Total assets $ 2,187,449 13,765 234,845 (234,433 ) 2,201,626 $ 1,847,633 9,649 180,420 (179,995 ) 1,857,707 Nine months ended Nine months ended September 30, 2019 September 30, 2018 Commercial Commercial and Retail Mortgage Elimin- Consol- and Retail Mortgage Elimin- Consol- (dollars in thousands) Banking Banking Corporate ations idated Banking Banking Corporate ations idated Interest income $ 68,283 473 9 (9 ) 68,756 $ 55,290 288 6 (6 ) 55,578 Interest expense 18,649 - 480 (9 ) 19,120 10,993 - 436 (6 ) 11,423 Net interest income (loss) 49,634 473 (471 ) - 49,636 44,297 288 (430 ) - 44,155 Provision for loan losses 1,250 - - - 1,250 1,300 - - - 1,300 Noninterest income 3,739 7,741 - - 11,480 3,414 4,311 - - 7,725 Noninterest expense 28,604 4,716 180 - 33,500 25,982 3,210 180 - 29,372 Net income before taxes 23,519 3,498 (651 ) - 26,366 20,429 1,389 (610 ) - 21,208 Income tax provision (benefit) 5,107 735 (137 ) - 5,705 4,538 292 (128 ) - 4,702 Net income (loss) $ 18,412 2,763 (514 ) - 20,661 $ 15,891 1,097 (482 ) - 16,506 Total assets $ 2,187,449 13,765 234,845 (234,433 ) 2,201,626 $ 1,847,633 9,649 180,420 (179,995 ) 1,857,707 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 _2
Nature of Business and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Business Activity | Business Activity Southern First Bancshares, Inc. (the “Company”) is a South Carolina corporation that owns all of the capital stock of Southern First Bank (the “Bank”) and all of the stock of Greenville First Statutory Trust I and II (collectively, the “Trusts”). The Trusts are special purpose non-consolidated entities organized for the sole purpose of issuing trust preferred securities. The Bank's primary federal regulator is the Federal Deposit Insurance Corporation (the “FDIC”). The Bank is also regulated and examined by the South Carolina Board of Financial Institutions. The Bank is primarily engaged in the business of accepting demand deposits and savings deposits insured by the FDIC, and providing commercial, consumer and mortgage loans to the general public. |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine month periods ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. 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, 2018 as filed with the Securities and Exchange Commission (“SEC”) on February 28, 2019. 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 10 – 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, or GAAP, 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. |
Subordinated Debentures | Subordinated Debentures On September 30, 2019, the Company entered into Subordinated Note Purchase Agreements (collectively, the “Purchase Agreement”) with certain qualified institutional buyers and accredited investors (the “Purchasers”) pursuant to which the Company sold and issued $23.0 million in aggregate principal amount of its 4.75% Fixed-to-Floating Rate Subordinated Notes due 2029 (the “Notes”). The Notes were offered and sold by the Company to eligible purchasers in a private offering in reliance on the exemption from the registration requirements of Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”) and the provisions of Regulation D promulgated thereunder (the “Private Placement”). The Company intends to use the proceeds from the offering, which were approximately $22.5 million, for general corporate purposes, including providing capital to the Bank and supporting organic growth. The Notes have a ten-year term and, from and including the date of issuance to but excluding September 30, 2024, will bear interest at a fixed annual rate of 4.75%, payable semi-annually in arrears, for the first five years of the term. From and including September 30, 2024 to but excluding the maturity date or early redemption date, the interest rate shall reset quarterly to an interest rate per annum equal to a benchmark rate (which is expected to be Three-Month Term SOFR) plus 340.8 basis points, payable quarterly in arrears. As provided in the Notes, the interest rate on the Notes during the applicable floating rate period may be determined based on a rate other than Three-Month Term SOFR. The Notes are redeemable, in whole or in part, on September 30, 2024, on any interest payment date thereafter, and at any time upon the occurrence of certain events. The Purchase Agreement contains certain customary representations, warranties and covenants made by the Company, on the one hand, and the Purchasers, severally and not jointly, on the other hand. On September 30, 2019, in connection with the sale and issuance of the Notes, the Company entered into a Registration Rights Agreement (the “Registration Rights Agreement”) with the Purchasers. Under the terms of the Registration Rights Agreement, the Company has agreed to take certain actions to provide for the exchange of the Notes for subordinated notes that are registered under the Securities Act and have substantially the same terms as the Notes (the “Exchange Notes”). Under certain circumstances, if the Company fails to meet its obligations under the Registration Rights Agreement, it would be required to pay additional interest to the holders of the Notes. The Notes were issued under an Indenture, dated September 30, 2019 (the “Indenture”), by and between the Company and UMB Bank, National Association, as trustee. The Notes are not subject to any sinking fund and are not convertible into or, other than with respect to the Exchange Notes, exchangeable for any other securities or assets of the Company or any of its subsidiaries. The Notes are not subject to redemption at the option of the holder. The Notes are unsecured, subordinated obligations of the Company only and are not obligations of, and are not guaranteed by, any subsidiary of the Company. The Notes rank junior in right to payment to the Company’s current and future senior indebtedness. The Notes are intended to qualify as Tier 2 capital for regulatory capital purposes for the Company. |
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. On October 4, 2019, the Company sold its Health Savings Account (“HSA”) deposit accounts, which totaled $6.2 million at September 30, 2019, to a nationwide HSA servicer and recognized a gain of approximately $745,000 from the sale. Also subsequent to September 30, 2019, the Company sold $30.3 million of investment securities from its existing investment portfolio, recognizing a gain of approximately $718,000. On October 11, 2019, the Company paid off $25.0 million of FHLB advances with an average cost of 3.36% and incurred a prepayment penalty of $1.5 million. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” . The guidance in the update supersedes the requirements in ASC Topic 840, Leases. The guidance is intended to increase transparency and comparability among organizations by recognizing right-of-use assets and lease liabilities on the balance sheet. For public companies, this update was effective for interim and annual periods beginning after December 15, 2018. The Company adopted this guidance in the first quarter of 2019. Upon adoption, the Company elected a practical expedient which allows existing leases to retain their classification as operating leases. The Company has also elected to not recognize right-of-use assets and lease liabilities arising from short-term leases. Implementation of the guidance resulted in the recording of a right-of-use asset and lease liability on the balance sheet; however it does not have a material impact on the Company's other consolidated financial statements. See additional disclosures in Note 8. |
Newly Issued, But Not Yet Effective Accounting Standards | Newly Issued, But Not Yet Effective Accounting Standards In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” . 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. ASU 2016-13 is effective for all annual and interim periods beginning after December 31, 2019, with early adoption permitted for fiscal years beginning after December 15, 2018. Adoption will be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company has established a team of individuals from credit, finance and risk management to evaluate the requirements of the new standard and the impact it will have on its processes. The implementation plan has progressed through the initial design, build, and testing phase and, in the first quarter of 2019, the Company began running parallel models. While the Company continues to evaluate the impact the new guidance will have on its financial position and results of operations, it currently expects the new guidance may result in an increase to its allowance for credit losses given the change to estimated losses over the contractual life of the loan portfolio. The amount of any change to the allowance is still under review and will depend, in part, upon the composition of our loan portfolio at the adoption date as well as economic conditions and loss forecasts at that date. On October 16, 2019, FASB voted to delay the effective date of this ASU for smaller reporting companies, such as the Company, until fiscal years beginning after December 15, 2022. 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) | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Costs and Fair Value of Investment Securities | The amortized costs and fair value of investment securities are as follows: Sep tember 30, 2019 Amortized Gross Unrealized Fair (dollars in thousands) Cost Gains Losses Value Available for sale US government agencies $ 13,482 286 3 13,765 SBA securities 3,741 83 20 3,804 State and political subdivisions 9,012 228 - 9,240 Asset-backed securities 12,364 12 103 12,273 Mortgage-backed securities FHLMC 12,704 48 33 12,719 FNMA 32,567 170 126 32,611 GNMA 5,020 13 18 5,015 Total mortgage-backed securities 50,291 231 177 50,345 Total investment securities available for sale $ 88,890 840 303 89,427 De cember 31, 2018 Amortized Gross Unrealized Fair Cost Gains Losses Value Available for sale US government agencies $ 8,975 1 194 8,782 SBA securities 3,628 - 103 3,525 State and political subdivisions 8,371 48 63 8,356 Asset-backed securities 9,595 12 49 9,558 Mortgage-backed securities FHLMC 12,258 87 242 12,103 FNMA 29,068 25 551 28,542 GNMA 4,170 1 132 4,039 Total mortgage-backed securities 45,496 113 925 44,684 Total $ 76,065 174 1,334 74,905 |
Schedule of Fair Values Investment Securities Available for Contractual Maturities | Contractual maturities and yields on the Company’s investment securities at September 30, 2019 and December 31, 2018 are shown in the following table. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. September 30, 2019 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 $ - - 3,980 2.09 % 3,703 2.61 % 6,082 3.18 % 13,765 2.71 % SBA securities - - - - 657 2.80 % 3,147 2.77 % 3,804 2.77 % State and political subdivisions - - 1,533 3.00 % 3,765 2.93 % 3,942 2.87 % 9,240 2.92 % Asset-backed securities - - - - 1,601 2.73 % 10,672 2.91 % 12,273 2.89 % Mortgage-backed securities - - 4,413 1.97 % 8,666 2.17 % 37,266 2.42 % 50,345 2.34 % Total $ - - 9,926 2.18 % 18,392 2.48 % 61,109 2.63 % 89,427 2.55 % December 31, 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 $ - - 2,665 2.12 % 6,117 2.77 % - - 8,782 2.57 % SBA securities - - - - - - 3,525 2.72 % 3,525 2.72 % State and political subdivisions - - 819 2.60 % 4,637 3.04 % 2,900 2.88 % 8,356 2.94 % Asset-backed securities - - - - 1,862 3.22 % 7,696 3.29 % 9,558 3.27 % Mortgage-backed securities - - 5,094 1.89 % 9,763 2.22 % 29,827 2.70 % 44,684 2.50 % Total $ - - 8,578 2.03 % 22,379 2.62 % 43,948 2.81 % 74,905 2.67 % |
Schedule of Gross Unrealized Losses on Investment Securities and Fair Market Value of Related Securities | The tables below summarize gross unrealized losses on investment securities and the fair market value of the related securities at September 30, 2019 and December 31, 2018, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position. September 30, 2019 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 1 $ 498 $ 2 1 $ 500 $ 1 2 $ 998 $ 3 SBA securities - - - 1 557 20 1 557 20 Asset-backed securities 5 7,757 87 2 3,046 16 7 10,803 103 Mortgage-backed securities FHLMC 6 6,394 8 5 3,956 25 11 10,350 33 FNMA 11 11,950 34 11 10,236 92 22 22,186 126 GNMA 1 1,249 1 2 1,742 17 3 2,991 18 Total 24 $ 27,848 $ 132 22 $ 20,037 $ 171 46 $ 47,885 $ 303 December 31, 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 1 $ 1,246 $ 3 8 $ 7,035 $ 191 9 $ 8,281 $ 194 SBA securities - - - 2 3,525 103 2 3,525 103 State and political subdivisions - - - 7 2,829 63 7 2,829 63 Asset-backed securities 4 6,707 49 - - - 4 6,707 49 Mortgage-backed securities FHLMC - - - 10 7,402 242 10 7,402 242 FNMA 2 2,689 6 23 22,814 545 25 25,503 551 GNMA 1 1,104 6 3 2,919 126 4 4,023 132 Total 8 $ 11,746 $ 64 53 $ 46,524 $ 1,270 61 $ 58,270 $ 1,334 |
Schedule of Other Investments | Other investments are comprised of the following and are recorded at cost which approximates fair value. (dollars in thousands) September 30, 2019 December 31, 2018 Federal Home Loan Bank stock $ 2,774 3,587 Other investments 130 131 Investment in Trust Preferred securities 403 403 Total other investments $ 3,307 4,121 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Schedule of Composition of Loan Portfolio | The following table summarizes the composition of our loan portfolio. Total gross loans are recorded net of deferred loan fees and costs, which totaled $3.1 million as of September 30, 2019 and $2.8 million as of December 31, 2018. September 30, 2019 December 31, 2018 (dollars in thousands) Amount % of Total Amount % of Total Commercial Owner occupied RE $ 392,896 21.4 % $ 367,018 21.9 % Non-owner occupied RE 481,865 26.2 % 404,296 24.1 % Construction 75,710 4.1 % 84,411 5.0 % Business 290,154 15.8 % 272,980 16.3 % Total commercial loans 1,240,625 67.5 % 1,128,705 67.3 % Consumer Real estate 346,512 18.8 % 320,943 19.1 % Home equity 174,611 9.5 % 165,937 9.9 % Construction 49,548 2.7 % 37,925 2.3 % Other 27,131 1.5 % 23,822 1.4 % Total consumer loans 597,802 32.5 % 548,627 32.7 % Total gross loans, net of deferred fees 1,838,427 100.0 % 1,677,332 100.0 % Less—allowance for loan losses (15,848 ) (15,762 ) Total loans, net $ 1,822,579 $ 1,661,570 |
Schedule of Loan Maturity Distribution by Type and Related Interest Rate | The information in the following tables summarizes the loan maturity distribution by type and related interest rate characteristics based on the contractual maturities of individual loans, including loans which may be subject to renewal at their contractual maturity. Renewal of such loans is subject to review and credit approval, as well as modification of terms upon maturity. Actual repayments of loans may differ from the maturities reflected below, because borrowers have the right to prepay obligations with or without prepayment penalties. September 30, 2019 After one One year but within After five (dollars in thousands) or less five years years Total Commercial Owner occupied RE $ 37,933 148,367 206,596 392,896 Non-owner occupied RE 58,945 263,046 159,874 481,865 Construction 29,096 22,696 23,918 75,710 Business 74,851 143,215 72,088 290,154 Total commercial loans 200,825 577,324 462,476 1,240,625 Consumer Real estate 25,426 81,161 239,925 346,512 Home equity 12,154 28,425 134,032 174,611 Construction 14,249 1,057 34,242 49,548 Other 6,381 16,455 4,295 27,131 Total consumer loans 58,210 127,098 412,494 597,802 Total gross loans, net of deferred fees $ 259,035 704,422 874,970 1,838,427 Loans maturing after one year with: Fixed interest rates $ 1,214,368 Floating interest rates 365,024 December 31, 2018 After one One year but within After five (dollars in thousands) or less five years years Total Commercial Owner occupied RE $ 20,839 165,436 180,743 367,018 Non-owner occupied RE 43,000 227,454 133,842 404,296 Construction 22,941 33,045 28,425 84,411 Business 80,672 128,911 63,397 272,980 Total commercial loans 167,452 554,846 406,407 1,128,705 Consumer Real estate 29,301 70,467 221,175 320,943 Home equity 8,867 24,618 132,452 165,937 Construction 16,006 1,646 20,273 37,925 Other 7,681 11,253 4,888 23,822 Total consumer 61,855 107,984 378,788 548,627 Total gross loan, net of deferred fees $ 229,307 662,830 785,195 1,677,332 Loans maturing after one year with: Fixed interest rates $ 1,100,854 Floating interest rates 347,171 |
Schedule of Nonperforming Assets, Including Nonaccruing TDRs | Following is a summary of our nonperforming assets, including nonaccruing TDRs. (dollars in thousands) September 30, 2019 December 31, 2018 Commercial Owner occupied RE $ - - Non-owner occupied RE 1,963 210 Construction - - Business 198 81 Consumer Real estate 1,637 1,980 Home equity 467 1,006 Construction - - Other - 12 Nonaccruing troubled debt restructurings 2,763 2,541 Total nonaccrual loans, including nonaccruing TDRs 7,028 5,830 Other real estate owned - - Total nonperforming assets $ 7,028 5,830 Nonperforming assets as a percentage of: Total assets 0.32 % 0.31 % Gross loans 0.38 % 0.35 % Total loans over 90 days past due $ 1,033 458 Loans over 90 days past due and still accruing - - Accruing troubled debt restructurings 5,791 6,742 |
Schedule of Key Information for Impaired Loans | The table below summarizes key information for impaired loans. The Company’s impaired loans include loans on nonaccrual status and loans modified in a TDR, whether on accrual or nonaccrual status. These impaired loans may have estimated impairment which is included in the allowance for loan losses. The Company’s commercial and consumer impaired loans are evaluated individually to determine the related allowance for loan losses. September 30, 2019 Recorded investment Impaired loans Impaired loans Unpaid with no related with related Related Principal Impaired allowance for allowance for allowance for (dollars in thousands) Balance loans loan losses loan losses loan losses Commercial Owner occupied RE $ 2,787 2,723 2,277 446 75 Non-owner occupied RE 4,474 4,034 2,409 1,625 416 Construction - - - - - Business 2,187 1,724 570 1,154 470 Total commercial 9,448 8,481 5,256 3,225 961 Consumer Real estate 2,674 2,534 1,434 1,100 438 Home equity 2,267 1,654 1,242 412 98 Construction - - - - - Other 150 150 - 150 17 Total consumer 5,091 4,338 2,676 1,662 553 Total $ 14,539 12,819 7,932 4,887 1,514 December 31, 2018 Recorded investment Impaired loans Impaired loans Unpaid with no related with related Related Principal Impaired allowance for allowance for allowance for (dollars in thousands) Balance loans loan losses loan losses loan losses Commercial Owner occupied RE $ 2,827 2,762 2,311 451 75 Non-owner occupied RE 3,321 2,807 603 2,204 558 Construction - - - - - Business 3,745 2,520 515 2,005 895 Total commercial 9,893 8,089 3,429 4,660 1,528 Consumer Real estate 2,993 2,892 1,494 1,398 456 Home equity 1,935 1,421 1,421 - - Construction - - - - - Other 170 170 - 170 30 Total consumer 5,098 4,483 2,915 1,568 486 Total $ 14,991 12,572 6,344 6,228 2,014 |
Schedule of Average Recorded Investment and Interest Income Recognized on Impaired Loans | The following table provides the average recorded investment in impaired loans and the amount of interest income recognized on impaired loans after impairment by portfolio segment and class. Three months ended Three months ended September 30, 2019 September 30, 2018 Average Recognized Average Recognized recorded interest recorded interest (dollars in thousands) investment income investment income Commercial Owner occupied RE $ 2,728 27 2,786 41 Non-owner occupied RE 4,077 74 3,048 29 Construction - - - - Business 1,738 14 2,965 44 Total commercial 8,543 115 8,799 114 Consumer Real estate 2,876 30 2,850 34 Home equity 1,668 30 1,273 17 Construction - - - - Other 151 2 162 1 Total consumer 4,695 62 4,285 52 Total $ 13,238 177 13,084 166 Nine months ended Nine months ended Year ended September 30, 2019 September 30, 2018 December 31, 2018 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 $ 2,742 96 2,792 103 2,784 142 Non-owner occupied RE 4,139 202 3,070 127 2,860 174 Construction - - - - - - Business 1,766 61 3,031 123 2,883 162 Total commercial 8,647 359 8,893 353 8,527 478 Consumer Real estate 3,062 97 2,871 114 2,930 151 Home equity 1,688 82 1,283 61 1,453 99 Construction - - - - - - Other 154 4 164 4 174 5 Total consumer 4,904 183 4,318 179 4,557 255 Total $ 13,551 542 13,211 532 13,084 733 |
Schedule of Allowance for Loan Losses by Commercial and Consumer Portfolio Segments | The following table summarizes the activity related to the allowance for loan losses by commercial and consumer portfolio segments: Three months ended September 30, 2019 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 $ 2,808 4,016 569 3,623 3,104 1,409 318 297 16,144 Provision for loan losses (75 ) 237 (63 ) 588 (93 ) 14 8 34 650 Loan charge-offs - (225 ) - (709 ) - - - (29 ) (963 ) Loan recoveries - - - 8 7 1 - 1 17 Net loan charge-offs - (225 ) - (701 ) 7 1 - (28 ) (946 ) Balance, end of period $ 2,733 4,028 506 3,510 3,018 1,424 326 303 15,848 Net charge-offs to average loans (annualized) 0.21 % Allowance for loan losses to gross loans 0.86 % Allowance for loan losses to nonperforming loans 225.51 % Three months ended September 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 $ 2,699 3,581 544 3,849 3,446 1,431 282 268 16,100 Provision for loan losses 71 379 (44 ) (17 ) 89 (93 ) (7 ) 22 400 Loan charge-offs - - - (536 ) - - - (20 ) (556 ) Loan recoveries - 25 - 89 1 80 - 1 196 Net loan charge-offs - 25 - (447 ) 1 80 - (19 ) (360 ) Balance, end of period $ 2,770 3,985 500 3,385 3,536 1,418 275 271 16,140 Net charge-offs to average loans (annualized) 0.09 % Allowance for loan losses to gross loans 1.00 % Allowance for loan losses to nonperforming loans 270.53 % Nine months ended September 30, 2019 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 $ 2,726 3,811 615 3,616 3,081 1,348 275 290 15,762 Provision for loan losses 117 454 (109 ) 577 (99 ) 174 51 85 1,250 Loan charge-offs (110 ) (239 ) - (709 ) - (100 ) - (82 ) (1,240 ) Loan recoveries - 2 - 26 36 2 - 10 76 Net loan charge-offs (110 ) (237 ) - (683 ) 36 (98 ) - (72 ) (1,164 ) Balance, end of period $ 2,733 4,028 506 3,510 3,018 1,424 326 303 15,848 Net charge-offs to average loans (annualized) 0.09 % Nine months ended September 30, 2018 Commercial Consumer Owner Non-owner occupied occupied Real Home 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 236 857 175 (31 ) 114 (157 ) 65 41 1,300 Loan charge-offs - (234 ) - (655 ) (76 ) (140 ) - (54 ) (1,159 ) Loan recoveries - 132 - 223 3 115 - 3 476 Net loan charge-offs - (102 ) - (432 ) (73 ) (25 ) - (51 ) (683 ) Balance, end of period $ 2,770 3,985 500 3,385 3,536 1,418 275 271 16,140 Net charge-offs to average loans (annualized) 0.06 % |
Schedule of Allowance for Loan Losses and Recorded Investment in Loans by Impairment | The following table disaggregates the allowance for loan losses and recorded investment in loans by impairment methodology. September 30, 2019 Allowance for loan losses Recorded investment in loans (dollars in thousands) Commercial Consumer Total Commercial Consumer Total Individually evaluated $ 961 553 1,514 8,481 4,338 12,819 Collectively evaluated 9,816 4,518 14,334 1,232,144 593,464 1,825,608 Total $ 10,777 5,071 15,848 1,240,625 597,802 1,838,427 December 31, 2018 Allowance for loan losses Recorded investment in loans (dollars in thousands) Commercial Consumer Total Commercial Consumer Total Individually evaluated $ 1,528 486 2,014 8,089 4,483 12,572 Collectively evaluated 9,240 4,508 13,748 1,120,616 544,144 1,664,760 Total $ 10,768 4,994 15,762 1,128,705 548,627 1,677,332 |
Consumer Loan [Member] | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Summary of breakdown of outstanding loans by risk category | The tables below provide a breakdown of outstanding consumer loans by risk category. September 30, 2019 (dollars in thousands) Real estate Home equity Construction Other Total Pass $ 341,367 170,749 49,548 26,843 588,507 Special mention 1,562 665 - 228 2,455 Substandard 3,583 3,197 - 60 6,840 Doubtful - - - - - $ 346,512 174,611 49,548 27,131 597,802 December 31, 2018 (dollars in thousands) Real estate Home equity Construction Other Total Pass $ 314,586 162,626 37,925 23,586 538,723 Special mention 1,792 864 - 139 2,795 Substandard 4,565 2,447 - 97 7,109 Doubtful - - - - - $ 320,943 165,937 37,925 23,822 548,627 |
Summary of outstanding commercial and consumer loans which include loans on nonaccrual by past due status | The following tables provide past due information for outstanding consumer loans and include loans on nonaccrual status as well as accruing TDRs. September 30, 2019 (dollars in thousands) Real estate Home equity Construction Other Total Current $ 345,720 173,536 49,548 27,064 595,868 30-59 days past due - 363 - 67 430 60-89 days past due 187 482 - - 669 Greater than 90 Days 605 230 - - 835 $ 346,512 174,611 49,548 27,131 597,802 December 31, 2018 (dollars in thousands) Real estate Home equity Construction Other Total Current $ 317,267 165,727 37,925 23,603 544,522 30-59 days past due 2,555 30 - 106 2,691 60-89 days past due 923 - - 113 1,036 Greater than 90 Days 198 180 - - 378 $ 320,943 165,937 37,925 23,822 548,627 |
Commercial Loan [Member] | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Summary of breakdown of outstanding loans by risk category | The tables below provide a breakdown of outstanding commercial loans by risk category. September 30, 2019 Owner Non-owner (dollars in thousands) occupied RE occupied RE Construction Business Total Pass $ 389,869 472,762 75,710 283,246 1,221,587 Special mention 729 4,186 - 2,950 7,865 Substandard 2,298 4,917 - 3,958 11,173 Doubtful - - - - - $ 392,896 481,865 75,710 290,154 1,240,625 December 31, 2018 Owner Non-owner (dollars in thousands) occupied RE occupied RE Construction Business Total Pass $ 363,621 400,266 84,411 266,898 1,115,196 Special mention 296 118 - 2,971 3,385 Substandard 3,101 3,912 - 3,111 10,124 Doubtful - - - - - $ 367,018 404,296 84,411 272,980 1,128,705 |
Summary of outstanding commercial and consumer loans which include loans on nonaccrual by past due status | The following tables provide past due information for outstanding commercial loans and include loans on nonaccrual status as well as accruing TDRs. September 30, 2019 Owner Non-owner (dollars in thousands) occupied RE occupied RE Construction Business Total Current $ 392,053 479,595 75,710 289,682 1,237,040 30-59 days past due 843 102 - 274 1,219 60-89 days past due - 2,168 - - 2,168 Greater than 90 Days - - - 198 198 $ 392,896 481,865 75,710 290,154 1,240,625 December 31, 2018 Owner Non-owner occupied RE occupied RE Construction Business Total Current $ 367,018 404,179 84,411 272,864 1,128,472 30-59 days past due - 117 - 36 153 60-89 days past due - - - - - Greater than 90 Days - - - 80 80 $ 367,018 404,296 84,411 272,980 1,128,705 |
Troubled Debt Restructurings (T
Troubled Debt Restructurings (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Troubled Debt Restructurings [Abstract] | |
Schedule of Concession at the Time of Modification and the Recorded Investment In Our Tdrs Before and After Their Modification | 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 nine months ended September 30, 2019 and 2018. For the nine months ended September 30, 2019 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 Consumer Home equity 1 - - - 1 $ 832 $ 832 Total loans 1 - - - 1 $ 832 $ 832 For the nine months ended September 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 Total loans 7 - - - 7 $ 2,262 $ 2,793 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Outstanding Financial Derivative Instruments | The following table summarizes the Company’s outstanding financial derivative instruments at September 30, 2019 and December 31, 2018. September 30, 2019 Fair Value (dollars in thousands) Notional Balance Sheet Location Asset/(Liability) Mortgage loan interest rate lock commitments $ 53,426 Other assets $ 682 MBS forward sales commitments 37,000 Other liabilities (71 ) Total derivative financial instruments $ 90,426 $ 611 December 31, 2018 Fair Value (dollars in thousands) Notional Balance Sheet Location Asset/(Liability) Mortgage loan interest rate lock commitments $ 20,552 Other assets $ 345 MBS forward sales commitments 11,750 Other liabilities (121 ) Total derivative financial instruments $ 32,302 $ 224 |
Fair Value Accounting (Tables)
Fair Value Accounting (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets And Liabilities Measured at Fair Value on Recurring Basis | The tables below present the recorded amount of assets and liabilities measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018. September 30, 2019 (dollars in thousands) Level 1 Level 2 Level 3 Total Assets Securities available for sale US government agencies $ - 13,765 - 13,765 SBA securities - 3,804 - 3,804 State and political subdivisions - 9,240 - 9,240 Asset-backed securities - 12,273 - 12,273 Mortgage-backed securities - 50,345 - 50,345 Mortgage loans held for sale - 40,630 - 40,630 Mortgage loan interest rate lock commitments - 682 - 682 Total assets measured at fair value on a recurring basis $ - 130,739 - 130,739 Liabilities MBS forward sales commitments $ - 71 - 71 Total liabilities measured at fair value on a recurring basis $ - 71 - 71 December 31, 2018 (dollars in thousands) Level 1 Level 2 Level 3 Total Assets Securities available for sale: US government agencies $ - 8,782 - 8,782 SBA securities - 3,525 - 3,525 State and political subdivisions - 8,356 - 8,356 Asset-backed securities - 9,558 - 9,558 Mortgage-backed securities - 44,684 - 44,684 Mortgage loans held for sale - 9,241 - 9,241 Mortgage loan interest rate lock commitments - 345 - 345 Total assets measured at fair value on a recurring basis $ - 84,491 - 84,491 Liabilities MBS forward sales commitments $ - 121 - 121 Total liabilities measured at fair value on a recurring basis $ - 121 - 121 |
Schedule of Assets And Liabilities Measured at Fair Value on Nonrecurring Basis | The tables below present the recorded amount of assets and liabilities measured at fair value on a nonrecurring basis as of September 30, 2019 and December 31, 2018. As of September 30, 2019 (dollars in thousands) Level 1 Level 2 Level 3 Total Assets Impaired loans $ - 4,357 6,948 11,305 Total assets measured at fair value on a nonrecurring basis $ - 4,357 6,948 11,305 As of December 31, 2018 (dollars in thousands) Level 1 Level 2 Level 3 Total Assets Impaired loans $ - 2,190 8,368 10,558 Total assets measured at fair value on a nonrecurring basis $ - 2,190 8,368 10,558 |
Schedule of Estimated Fair Values of the Company's Financial Instruments | The estimated fair values of the Company’s financial instruments at September 30, 2019 and December 31, 2018 are as follows: September 30, 2019 Carrying Fair (dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets: Other investments, at cost $ 3,307 3,307 - - 3,307 Loans 1 1,809,760 1,787,368 - - 1,787,368 Financial Liabilities: Deposits 1,899,295 1,809,500 - 1,809,500 - FHLB and other borrowings 25,000 26,166 - 26,166 - Junior subordinated debentures 35,887 33,567 - 33,567 - December 31, 2018 Carrying Fair (dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets: Other investments, at cost $ 4,121 4,121 - - 4,121 Loans 1 1,648,998 1,618,618 - - 1,618,618 Financial Liabilities: Deposits 1,648,136 1,515,123 - 1,515,123 - FHLB and other borrowings 50,000 50,147 - 50,147 - Junior subordinated debentures 13,403 14,807 - 14,807 - |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Maturities of lease liabilities | Maturities of lease liabilities as of September 30, 2019 were as follows: Operating (dollars in thousands) Leases 2019 $ 483 2020 1,963 2021 2,008 2022 1,252 2023 1,120 Thereafter 14,227 Total undiscounted lease payments 21,053 Discount effect of cash flows 4,371 Total lease liability $ 16,682 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings per common share | |
Schedule of Earnings Per Share Calculation | The following schedule reconciles the numerators and denominators of the basic and diluted earnings per share computations for the three and nine month periods ended September 30, 2019 and 2018. Dilutive common shares arise from the potentially dilutive effect of the Company’s stock options that were outstanding at September 30, 2019. The assumed conversion of stock options can create a difference between basic and dilutive net income per common share. At September 30, 2019 and 2018, there were 259,656 and 181,892 options, respectively, that were not considered in computing diluted earnings per common share because they were anti-dilutive. Three months ended Nine months ended September 30, September 30, (dollars in thousands, except share data) 2019 2018 2019 2018 Numerator: Net income available to common shareholders $ 7,412 5,782 20,661 16,506 Denominator: Weighted-average common shares outstanding – basic 7,548,184 7,400,174 7,501,337 7,369,473 Common stock equivalents 232,320 346,031 258,274 372,010 Weighted-average common shares outstanding – diluted 7,780,504 7,746,205 7,759,611 7,741,483 Earnings per common share: Basic $ 0.98 0.78 2.75 2.24 Diluted $ 0.95 0.75 2.66 2.13 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information for Each Reportable Segment | The following schedule presents financial information for each reportable segment. Three months ended Three months ended September 30, 2019 September 30, 2018 Commercial Commercial and Retail Mortgage Elimin- Consol- and Retail Mortgage Elimin- Consol- (dollars in thousands) Banking Banking Corporate ations idated Banking Banking Corporate ation idated Interest income $ 23,830 226 4 (4 ) 24,056 $ 19,775 90 2 (2 ) 19,865 Interest expense 6,628 - 153 (4 ) 6,777 4,212 - 154 (2 ) 4,364 Net interest income (loss) 17,202 226 (149 ) - 17,279 15,563 90 (152 ) - 15,501 Provision for loan losses 650 - - - 650 400 - - - 400 Noninterest income 1,341 3,055 - - 4,396 1,179 1,354 - - 2,533 Noninterest expense 9,529 1,895 60 - 11,484 9,046 1,082 60 - 10,188 Net income (loss) before taxes 8,364 1,386 (209 ) - 9,541 7,296 362 (212 ) - 7,446 Income tax provision (benefit) 1,882 291 (44 ) - 2,129 1,632 76 (44 ) - 1,664 Net income (loss) $ 6,482 1,095 (165 ) - 7,412 $ 5,664 286 (168 ) - 5,782 Total assets $ 2,187,449 13,765 234,845 (234,433 ) 2,201,626 $ 1,847,633 9,649 180,420 (179,995 ) 1,857,707 Nine months ended Nine months ended September 30, 2019 September 30, 2018 Commercial Commercial and Retail Mortgage Elimin- Consol- and Retail Mortgage Elimin- Consol- (dollars in thousands) Banking Banking Corporate ations idated Banking Banking Corporate ations idated Interest income $ 68,283 473 9 (9 ) 68,756 $ 55,290 288 6 (6 ) 55,578 Interest expense 18,649 - 480 (9 ) 19,120 10,993 - 436 (6 ) 11,423 Net interest income (loss) 49,634 473 (471 ) - 49,636 44,297 288 (430 ) - 44,155 Provision for loan losses 1,250 - - - 1,250 1,300 - - - 1,300 Noninterest income 3,739 7,741 - - 11,480 3,414 4,311 - - 7,725 Noninterest expense 28,604 4,716 180 - 33,500 25,982 3,210 180 - 29,372 Net income before taxes 23,519 3,498 (651 ) - 26,366 20,429 1,389 (610 ) - 21,208 Income tax provision (benefit) 5,107 735 (137 ) - 5,705 4,538 292 (128 ) - 4,702 Net income (loss) $ 18,412 2,763 (514 ) - 20,661 $ 15,891 1,097 (482 ) - 16,506 Total assets $ 2,187,449 13,765 234,845 (234,433 ) 2,201,626 $ 1,847,633 9,649 180,420 (179,995 ) 1,857,707 |
Nature of Business and Basis _3
Nature of Business and Basis of Presentation (Narrative) (Details) - USD ($) | Oct. 11, 2019 | Oct. 04, 2019 | Sep. 30, 2019 |
Subsequent Event [Member] | |||
Amount of sale of deposit accounts | $ 6,200,000 | ||
Gain on sale of deposit accounts | 745,000 | ||
Amount of investment securities held for sale | 30,300,000 | ||
Gain on sale of investment securities | $ 718,000 | ||
Repayment of advance loan | $ 25,000,000 | ||
Prepayment fees on advances net | $ 1,500,000 | ||
Percentage of average cost of advances | 3.36% | ||
Junior Subordinated Debt [Member] | |||
Aggregate principal amount of subordinated notes | $ 23,000,000 | ||
Rate of interest of subordinated notes | 4.75% | ||
Proceeds from issue of subordinated debts | $ 22,500,000 | ||
Term of subordinated notes | 10 years | ||
Basis points of interest rate calculation | 3.408% |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) $ in Millions | Sep. 30, 2019USD ($)Investments | Dec. 31, 2018Investments |
Investment Securities (Textual) | ||
Fair market value, less than 12 months, number of investments | Investments | 24 | 8 |
Fair market value, less than 12 months | $ | $ 27.8 | |
Fair market value, 12 months or longer, number of investments | Investments | 22 | |
Fair market value, 12 months or longer | $ | $ 20 |
Investment Securities (Schedule
Investment Securities (Schedule of Amortized Costs and Fair Value of Investment Securities) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Available for sale | ||
Total investment securities available for sale, Amortized Cost | $ 88,890 | $ 76,065 |
Total investment securities available for sale, Gross Unrealized Gains | 840 | 174 |
Total investment securities available for sale, Gross Unrealized Losses | 303 | 1,334 |
Available-for-sale securities, investment securities, Fair Value | 89,427 | 74,905 |
US Government Agencies [Member] | ||
Available for sale | ||
Total investment securities available for sale, Amortized Cost | 13,482 | 8,975 |
Total investment securities available for sale, Gross Unrealized Gains | 286 | 1 |
Total investment securities available for sale, Gross Unrealized Losses | 3 | 194 |
Available-for-sale securities, investment securities, Fair Value | 13,765 | 8,782 |
SBA Securities [Member] | ||
Available for sale | ||
Total investment securities available for sale, Amortized Cost | 3,741 | 3,628 |
Total investment securities available for sale, Gross Unrealized Gains | 83 | |
Total investment securities available for sale, Gross Unrealized Losses | 20 | 103 |
Available-for-sale securities, investment securities, Fair Value | 3,804 | 3,525 |
State and Political Subdivisions [Member] | ||
Available for sale | ||
Total investment securities available for sale, Amortized Cost | 9,012 | 8,371 |
Total investment securities available for sale, Gross Unrealized Gains | 228 | 48 |
Total investment securities available for sale, Gross Unrealized Losses | 63 | |
Available-for-sale securities, investment securities, Fair Value | 9,240 | 8,356 |
Asset-backed Securities [Member] | ||
Available for sale | ||
Total investment securities available for sale, Amortized Cost | 12,364 | 9,595 |
Total investment securities available for sale, Gross Unrealized Gains | 12 | 12 |
Total investment securities available for sale, Gross Unrealized Losses | 103 | 49 |
Available-for-sale securities, investment securities, Fair Value | 12,273 | 9,558 |
Mortgage Backed Securities [Member] | ||
Available for sale | ||
Total investment securities available for sale, Amortized Cost | 50,291 | 45,496 |
Total investment securities available for sale, Gross Unrealized Gains | 231 | 113 |
Total investment securities available for sale, Gross Unrealized Losses | 177 | 925 |
Available-for-sale securities, investment securities, Fair Value | 50,345 | 44,684 |
Mortgage Backed Securities [Member] | FHLMC [Member] | ||
Available for sale | ||
Total investment securities available for sale, Amortized Cost | 12,704 | 12,258 |
Total investment securities available for sale, Gross Unrealized Gains | 48 | 87 |
Total investment securities available for sale, Gross Unrealized Losses | 33 | 242 |
Available-for-sale securities, investment securities, Fair Value | 12,719 | 12,103 |
Mortgage Backed Securities [Member] | FNMA [Member] | ||
Available for sale | ||
Total investment securities available for sale, Amortized Cost | 32,567 | 29,068 |
Total investment securities available for sale, Gross Unrealized Gains | 170 | 25 |
Total investment securities available for sale, Gross Unrealized Losses | 126 | 551 |
Available-for-sale securities, investment securities, Fair Value | 32,611 | 28,542 |
Mortgage Backed Securities [Member] | GNMA [Member] | ||
Available for sale | ||
Total investment securities available for sale, Amortized Cost | 5,020 | 4,170 |
Total investment securities available for sale, Gross Unrealized Gains | 13 | 1 |
Total investment securities available for sale, Gross Unrealized Losses | 18 | 132 |
Available-for-sale securities, investment securities, Fair Value | $ 5,015 | $ 4,039 |
Investment Securities (Schedu_2
Investment Securities (Schedule of Fair Values Investment Securities Available for Contractual Maturities) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Available for sale | ||
Contractual Maturities, Less than one year, Amount | ||
Contractual Maturities, Less than one year, Yield | ||
Contractual Maturities, One to five years, Amount | $ 9,926 | $ 8,578 |
Contractual Maturities, One to five years, Yield | 2.18% | 2.03% |
Contractual Maturities, Five to ten years, Amount | $ 18,392 | $ 22,379 |
Contractual Maturities, Five to ten years, Yield | 2.48% | 2.62% |
Contractual Maturities, Over ten years, Amount | $ 61,109 | $ 43,948 |
Contractual Maturities, Over ten years, Yield | 2.63% | 2.81% |
Contractual Maturities, Total, Amount | $ 89,427 | $ 74,905 |
Contractual Maturities, Total, Yield | 2.55% | 2.67% |
US Government Agencies [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 | $ 3,980 | $ 2,665 |
Contractual Maturities, One to five years, Yield | 2.09% | 2.12% |
Contractual Maturities, Five to ten years, Amount | $ 3,703 | $ 6,117 |
Contractual Maturities, Five to ten years, Yield | 2.61% | 2.77% |
Contractual Maturities, Over ten years, Amount | $ 6,082 | |
Contractual Maturities, Over ten years, Yield | 3.18% | |
Contractual Maturities, Total, Amount | $ 13,765 | $ 8,782 |
Contractual Maturities, Total, Yield | 2.71% | 2.57% |
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 | $ 657 | |
Contractual Maturities, Five to ten years, Yield | 2.80% | |
Contractual Maturities, Over ten years, Amount | $ 3,147 | $ 3,525 |
Contractual Maturities, Over ten years, Yield | 2.77% | 2.72% |
Contractual Maturities, Total, Amount | $ 3,804 | $ 3,525 |
Contractual Maturities, Total, Yield | 2.77% | 2.72% |
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 | $ 1,533 | $ 819 |
Contractual Maturities, One to five years, Yield | 3.00% | 2.60% |
Contractual Maturities, Five to ten years, Amount | $ 3,765 | $ 4,637 |
Contractual Maturities, Five to ten years, Yield | 2.93% | 3.04% |
Contractual Maturities, Over ten years, Amount | $ 3,942 | $ 2,900 |
Contractual Maturities, Over ten years, Yield | 2.87% | 2.88% |
Contractual Maturities, Total, Amount | $ 9,240 | $ 8,356 |
Contractual Maturities, Total, Yield | 2.92% | 2.94% |
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 | $ 1,601 | $ 1,862 |
Contractual Maturities, Five to ten years, Yield | 2.73% | 3.22% |
Contractual Maturities, Over ten years, Amount | $ 10,672 | $ 7,696 |
Contractual Maturities, Over ten years, Yield | 2.91% | 3.29% |
Contractual Maturities, Total, Amount | $ 12,273 | $ 9,558 |
Contractual Maturities, Total, Yield | 2.89% | 3.27% |
Mortgage 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 | $ 4,413 | $ 5,094 |
Contractual Maturities, One to five years, Yield | 1.97% | 1.89% |
Contractual Maturities, Five to ten years, Amount | $ 8,666 | $ 9,763 |
Contractual Maturities, Five to ten years, Yield | 2.17% | 2.22% |
Contractual Maturities, Over ten years, Amount | $ 37,266 | $ 29,827 |
Contractual Maturities, Over ten years, Yield | 2.42% | 2.70% |
Contractual Maturities, Total, Amount | $ 50,345 | $ 44,684 |
Contractual Maturities, Total, Yield | 2.34% | 2.50% |
Investment Securities (Schedu_3
Investment Securities (Schedule of Gross Unrealized Losses on Investment Securities and Fair Market Value) (Details) $ in Thousands | Sep. 30, 2019USD ($)Investments | Dec. 31, 2018USD ($)Investments |
Available for sale | ||
Available for sale Securities, Less than 12 months, Number of investments | Investments | 24 | 8 |
Available for sale Securities, Less than 12 months, Fair value | $ 27,848 | $ 11,746 |
Available for sale Securities, Less than 12 months, Unrealized losses | $ 132 | $ 64 |
Available for sale Securities, 12 months or longer, Number of investments | Investments | 22 | 53 |
Available for sale Securities, 12 months or longer, Fair value | $ 20,037 | $ 46,524 |
Available for sale Securities, 12 months or Longer, Unrealized losses | $ 171 | $ 1,270 |
Available for sale Securities, Total, Number of investments | Investments | 46 | 61 |
Available for sale Securities, Total, Fair value | $ 47,885 | $ 58,270 |
Available for sale Securities, Total, Unrealized losses | $ 303 | $ 1,334 |
US Government Agencies [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 | $ 498 | $ 1,246 |
Available for sale Securities, Less than 12 months, Unrealized losses | $ 2 | $ 3 |
Available for sale Securities, 12 months or longer, Number of investments | Investments | 1 | 8 |
Available for sale Securities, 12 months or longer, Fair value | $ 500 | $ 7,035 |
Available for sale Securities, 12 months or Longer, Unrealized losses | $ 1 | $ 191 |
Available for sale Securities, Total, Number of investments | Investments | 2 | 9 |
Available for sale Securities, Total, Fair value | $ 998 | $ 8,281 |
Available for sale Securities, Total, Unrealized losses | $ 3 | $ 194 |
SBA Securities [Member] | ||
Available for sale | ||
Available for sale Securities, Less than 12 months, Number of investments | Investments | ||
Available for sale Securities, Less than 12 months, Fair value | ||
Available for sale Securities, Less than 12 months, Unrealized losses | ||
Available for sale Securities, 12 months or longer, Number of investments | Investments | 1 | 2 |
Available for sale Securities, 12 months or longer, Fair value | $ 557 | $ 3,525 |
Available for sale Securities, 12 months or Longer, Unrealized losses | $ 20 | $ 103 |
Available for sale Securities, Total, Number of investments | Investments | 1 | 2 |
Available for sale Securities, Total, Fair value | $ 557 | $ 3,525 |
Available for sale Securities, Total, Unrealized losses | $ 20 | $ 103 |
State and Political Subdivisions [Member] | ||
Available for sale | ||
Available for sale Securities, Less than 12 months, Number of investments | Investments | ||
Available for sale Securities, Less than 12 months, Fair value | ||
Available for sale Securities, Less than 12 months, Unrealized losses | ||
Available for sale Securities, 12 months or longer, Number of investments | Investments | 7 | |
Available for sale Securities, 12 months or longer, Fair value | $ 2,829 | |
Available for sale Securities, 12 months or Longer, Unrealized losses | $ 63 | |
Available for sale Securities, Total, Number of investments | Investments | 7 | |
Available for sale Securities, Total, Fair value | $ 2,829 | |
Available for sale Securities, Total, Unrealized losses | $ 63 | |
Asset-backed Securities [Member] | ||
Available for sale | ||
Available for sale Securities, Less than 12 months, Number of investments | Investments | 5 | 4 |
Available for sale Securities, Less than 12 months, Fair value | $ 7,757 | $ 6,707 |
Available for sale Securities, Less than 12 months, Unrealized losses | $ 87 | $ 49 |
Available for sale Securities, 12 months or longer, Number of investments | Investments | 2 | |
Available for sale Securities, 12 months or longer, Fair value | $ 3,046 | |
Available for sale Securities, 12 months or Longer, Unrealized losses | $ 16 | |
Available for sale Securities, Total, Number of investments | Investments | 7 | 4 |
Available for sale Securities, Total, Fair value | $ 10,803 | $ 6,707 |
Available for sale Securities, Total, Unrealized losses | $ 103 | $ 49 |
Mortgage Backed Securities [Member] | FHLMC [Member] | ||
Available for sale | ||
Available for sale Securities, Less than 12 months, Number of investments | Investments | 6 | |
Available for sale Securities, Less than 12 months, Fair value | $ 6,394 | |
Available for sale Securities, Less than 12 months, Unrealized losses | $ 8 | |
Available for sale Securities, 12 months or longer, Number of investments | Investments | 5 | 10 |
Available for sale Securities, 12 months or longer, Fair value | $ 3,956 | $ 7,402 |
Available for sale Securities, 12 months or Longer, Unrealized losses | $ 25 | $ 242 |
Available for sale Securities, Total, Number of investments | Investments | 11 | 10 |
Available for sale Securities, Total, Fair value | $ 10,350 | $ 7,402 |
Available for sale Securities, Total, Unrealized losses | $ 33 | $ 242 |
Mortgage Backed Securities [Member] | FNMA [Member] | ||
Available for sale | ||
Available for sale Securities, Less than 12 months, Number of investments | Investments | 11 | 2 |
Available for sale Securities, Less than 12 months, Fair value | $ 11,950 | $ 2,689 |
Available for sale Securities, Less than 12 months, Unrealized losses | $ 34 | $ 6 |
Available for sale Securities, 12 months or longer, Number of investments | Investments | 11 | 23 |
Available for sale Securities, 12 months or longer, Fair value | $ 10,236 | $ 22,814 |
Available for sale Securities, 12 months or Longer, Unrealized losses | $ 92 | $ 545 |
Available for sale Securities, Total, Number of investments | Investments | 22 | 25 |
Available for sale Securities, Total, Fair value | $ 22,186 | $ 25,503 |
Available for sale Securities, Total, Unrealized losses | $ 126 | $ 551 |
Mortgage Backed Securities [Member] | GNMA [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 | $ 1,249 | $ 1,104 |
Available for sale Securities, Less than 12 months, Unrealized losses | $ 1 | $ 6 |
Available for sale Securities, 12 months or longer, Number of investments | Investments | 2 | 3 |
Available for sale Securities, 12 months or longer, Fair value | $ 1,742 | $ 2,919 |
Available for sale Securities, 12 months or Longer, Unrealized losses | $ 17 | $ 126 |
Available for sale Securities, Total, Number of investments | Investments | 3 | 4 |
Available for sale Securities, Total, Fair value | $ 2,991 | $ 4,023 |
Available for sale Securities, Total, Unrealized losses | $ 18 | $ 132 |
Investment Securities (Schedu_4
Investment Securities (Schedule of Other Investments) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Other investments | ||
Federal Home Loan Bank stock | $ 2,774 | $ 3,587 |
Other investments | 130 | 131 |
Investment in Trust Preferred securities | 403 | 403 |
Total other investments | $ 3,307 | $ 4,121 |
Mortgage Loans Held for Sale (N
Mortgage Loans Held for Sale (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Mortgage Loans Held for Sale (Textual) | ||
Mortgage loans held for sale, fair value | $ 40.6 | $ 9.2 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Part of loans of 30 days or more past due as a percentage of total loan portfolio | 0.30% | 0.26% |
Net of deferred loan fees and costs | $ 3.1 | $ 2.8 |
Commercial Loan [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Part of loans of 30 days or more past due as a percentage of total loan portfolio | 0.19% | 0.01% |
Consumer Loan [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Part of loans of 30 days or more past due as a percentage of total loan portfolio | 0.11% | 0.25% |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses (Schedule of Composition of Loan Portfolio) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Composition of loan portfolio | ||
Total gross loans, net of deferred fees | $ 1,838,427 | $ 1,677,332 |
Total gross loans, net of deferred fees, (Percentage) | 100.00% | 100.00% |
Less-allowance for loan losses | $ (15,848) | $ (15,762) |
Total loans, net | 1,822,579 | 1,661,570 |
Commercial Loan [Member] | ||
Composition of loan portfolio | ||
Total gross loans, net of deferred fees | $ 1,240,625 | $ 1,128,705 |
Total gross loans, net of deferred fees, (Percentage) | 67.50% | 67.30% |
Commercial Loan [Member] | Owner Occupied Re [Member] | ||
Composition of loan portfolio | ||
Total gross loans, net of deferred fees | $ 392,896 | $ 367,018 |
Total gross loans, net of deferred fees, (Percentage) | 21.40% | 21.90% |
Commercial Loan [Member] | Non Owner Occupied Re [Member] | ||
Composition of loan portfolio | ||
Total gross loans, net of deferred fees | $ 481,865 | $ 404,296 |
Total gross loans, net of deferred fees, (Percentage) | 26.20% | 24.10% |
Commercial Loan [Member] | Business Loan [Member] | ||
Composition of loan portfolio | ||
Total gross loans, net of deferred fees | $ 290,154 | $ 272,980 |
Total gross loans, net of deferred fees, (Percentage) | 15.80% | 16.30% |
Commercial Loan [Member] | Construction Loans [Member] | ||
Composition of loan portfolio | ||
Total gross loans, net of deferred fees | $ 75,710 | $ 84,411 |
Total gross loans, net of deferred fees, (Percentage) | 4.10% | 5.00% |
Consumer Loan [Member] | ||
Composition of loan portfolio | ||
Total gross loans, net of deferred fees | $ 597,802 | $ 548,627 |
Total gross loans, net of deferred fees, (Percentage) | 32.50% | 32.70% |
Consumer Loan [Member] | Other Consumer [Member] | ||
Composition of loan portfolio | ||
Total gross loans, net of deferred fees | $ 27,131 | $ 23,822 |
Total gross loans, net of deferred fees, (Percentage) | 1.50% | 1.40% |
Consumer Loan [Member] | Construction Loans [Member] | ||
Composition of loan portfolio | ||
Total gross loans, net of deferred fees | $ 49,548 | $ 37,925 |
Total gross loans, net of deferred fees, (Percentage) | 2.70% | 2.30% |
Consumer Loan [Member] | Real Estate Loan [Member] | ||
Composition of loan portfolio | ||
Total gross loans, net of deferred fees | $ 346,512 | $ 320,943 |
Total gross loans, net of deferred fees, (Percentage) | 18.80% | 19.10% |
Consumer Loan [Member] | Home Equity Loan [Member] | ||
Composition of loan portfolio | ||
Total gross loans, net of deferred fees | $ 174,611 | $ 165,937 |
Total gross loans, net of deferred fees, (Percentage) | 9.50% | 9.90% |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses (Schedule of Loan Maturity Distribution by Type and Related Interest Rate) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans, net of deferred fees, One year or less | $ 259,035 | $ 229,307 |
Total gross loans, net of deferred fees, After one but within five years | 704,422 | 662,830 |
Total gross loans, net of deferred fees, After five years | 874,970 | 785,195 |
Total gross loans, net of deferred fees | 1,838,427 | 1,677,332 |
Loans maturing after one year with: fixed interest rates | 1,214,368 | 1,100,854 |
Loans maturing after one year with: floating interest rates | 365,024 | 347,171 |
Commercial Loan [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans, net of deferred fees, One year or less | 200,825 | 167,452 |
Total gross loans, net of deferred fees, After one but within five years | 577,324 | 554,846 |
Total gross loans, net of deferred fees, After five years | 462,476 | 406,407 |
Total gross loans, net of deferred fees | 1,240,625 | 1,128,705 |
Commercial Loan [Member] | Owner Occupied Re [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans, net of deferred fees, One year or less | 37,933 | 20,839 |
Total gross loans, net of deferred fees, After one but within five years | 148,367 | 165,436 |
Total gross loans, net of deferred fees, After five years | 206,596 | 180,743 |
Total gross loans, net of deferred fees | 392,896 | 367,018 |
Commercial Loan [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 | 58,945 | 43,000 |
Total gross loans, net of deferred fees, After one but within five years | 263,046 | 227,454 |
Total gross loans, net of deferred fees, After five years | 159,874 | 133,842 |
Total gross loans, net of deferred fees | 481,865 | 404,296 |
Commercial Loan [Member] | Business Loan [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans, net of deferred fees, One year or less | 74,851 | 80,672 |
Total gross loans, net of deferred fees, After one but within five years | 143,215 | 128,911 |
Total gross loans, net of deferred fees, After five years | 72,088 | 63,397 |
Total gross loans, net of deferred fees | 290,154 | 272,980 |
Commercial Loan [Member] | Construction Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans, net of deferred fees, One year or less | 29,096 | 22,941 |
Total gross loans, net of deferred fees, After one but within five years | 22,696 | 33,045 |
Total gross loans, net of deferred fees, After five years | 23,918 | 28,425 |
Total gross loans, net of deferred fees | 75,710 | 84,411 |
Consumer Loan [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans, net of deferred fees, One year or less | 58,210 | 61,855 |
Total gross loans, net of deferred fees, After one but within five years | 127,098 | 107,984 |
Total gross loans, net of deferred fees, After five years | 412,494 | 378,788 |
Total gross loans, net of deferred fees | 597,802 | 548,627 |
Consumer Loan [Member] | Other Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans, net of deferred fees, One year or less | 6,381 | 7,681 |
Total gross loans, net of deferred fees, After one but within five years | 16,455 | 11,253 |
Total gross loans, net of deferred fees, After five years | 4,295 | 4,888 |
Total gross loans, net of deferred fees | 27,131 | 23,822 |
Consumer Loan [Member] | Construction Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans, net of deferred fees, One year or less | 14,249 | 16,006 |
Total gross loans, net of deferred fees, After one but within five years | 1,057 | 1,646 |
Total gross loans, net of deferred fees, After five years | 34,242 | 20,273 |
Total gross loans, net of deferred fees | 49,548 | 37,925 |
Consumer Loan [Member] | Real Estate Loan [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans, net of deferred fees, One year or less | 25,426 | 29,301 |
Total gross loans, net of deferred fees, After one but within five years | 81,161 | 70,467 |
Total gross loans, net of deferred fees, After five years | 239,925 | 221,175 |
Total gross loans, net of deferred fees | 346,512 | 320,943 |
Consumer Loan [Member] | Home Equity Loan [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross loans, net of deferred fees, One year or less | 12,154 | 8,867 |
Total gross loans, net of deferred fees, After one but within five years | 28,425 | 24,618 |
Total gross loans, net of deferred fees, After five years | 134,032 | 132,452 |
Total gross loans, net of deferred fees | $ 174,611 | $ 165,937 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses (Schedule of Breakdown of Outstanding Loans by Risk Category) (Details) - Commercial Loan [Member] - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | $ 1,240,625 | $ 1,128,705 |
Pass [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 1,221,587 | 1,115,196 |
Special Mention [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 7,865 | 3,385 |
Substandard [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 11,173 | 10,124 |
Doubtful [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | ||
Owner Occupied Re [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 392,896 | 367,018 |
Owner Occupied Re [Member] | Pass [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 389,869 | 363,621 |
Owner Occupied Re [Member] | Special Mention [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 729 | 296 |
Owner Occupied Re [Member] | Substandard [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 2,298 | 3,101 |
Owner Occupied Re [Member] | Doubtful [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | ||
Non Owner Occupied Re [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 481,865 | 404,296 |
Non Owner Occupied Re [Member] | Pass [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 472,762 | 400,266 |
Non Owner Occupied Re [Member] | Special Mention [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 4,186 | 118 |
Non Owner Occupied Re [Member] | Substandard [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 4,917 | 3,912 |
Non Owner Occupied Re [Member] | Doubtful [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | ||
Construction Loans [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 75,710 | 84,411 |
Construction Loans [Member] | Pass [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 75,710 | 84,411 |
Construction Loans [Member] | Special Mention [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | ||
Construction Loans [Member] | Substandard [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | ||
Construction Loans [Member] | Doubtful [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | ||
Business Loan [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 290,154 | 272,980 |
Business Loan [Member] | Pass [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 283,246 | 266,898 |
Business Loan [Member] | Special Mention [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 2,950 | 2,971 |
Business Loan [Member] | Substandard [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans | 3,958 | 3,111 |
Business Loan [Member] | Doubtful [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding commercial loans |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses (Schedule of Outstanding Commercial and Consumer Loans as Non-Accruals by Class) (Details) - Commercial Loan [Member] - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Outstanding commercial and consumer loans which include loans on nonaccrual status | ||
Current | $ 1,237,040 | $ 1,128,472 |
30-59 days past due | 1,219 | 153 |
60-89 days past due | 2,168 | |
Greater than 90 days | 198 | 80 |
Total commercial loans | 1,240,625 | 1,128,705 |
Owner Occupied Re [Member] | ||
Outstanding commercial and consumer loans which include loans on nonaccrual status | ||
Current | 392,053 | 367,018 |
30-59 days past due | 843 | |
60-89 days past due | ||
Greater than 90 days | ||
Total commercial loans | 392,896 | 367,018 |
Non Owner Occupied Re [Member] | ||
Outstanding commercial and consumer loans which include loans on nonaccrual status | ||
Current | 479,595 | 404,179 |
30-59 days past due | 102 | 117 |
60-89 days past due | 2,168 | |
Greater than 90 days | ||
Total commercial loans | 481,865 | 404,296 |
Construction Loans [Member] | ||
Outstanding commercial and consumer loans which include loans on nonaccrual status | ||
Current | 75,710 | 84,411 |
30-59 days past due | ||
60-89 days past due | ||
Greater than 90 days | ||
Total commercial loans | 75,710 | 84,411 |
Business Loan [Member] | ||
Outstanding commercial and consumer loans which include loans on nonaccrual status | ||
Current | 289,682 | 272,864 |
30-59 days past due | 274 | 36 |
60-89 days past due | ||
Greater than 90 days | 198 | 80 |
Total commercial loans | $ 290,154 | $ 272,980 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses (Schedule of Outstanding Consumer Loans by Risk Category) (Details) - Consumer Loan [Member] - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | $ 597,802 | $ 548,627 |
Other Consumer [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 27,131 | 23,822 |
Pass [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 588,507 | 538,723 |
Pass [Member] | Other Consumer [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 26,843 | 23,586 |
Special Mention [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 2,455 | 2,795 |
Special Mention [Member] | Other Consumer [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 228 | 139 |
Substandard [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 6,840 | 7,109 |
Substandard [Member] | Other Consumer [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 60 | 97 |
Doubtful [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | ||
Doubtful [Member] | Other Consumer [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | ||
Real Estate Loan [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 346,512 | 320,943 |
Real Estate Loan [Member] | Pass [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 341,367 | 314,586 |
Real Estate Loan [Member] | Special Mention [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 1,562 | 1,792 |
Real Estate Loan [Member] | Substandard [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 3,583 | 4,565 |
Real Estate Loan [Member] | Doubtful [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | ||
Home Equity Loan [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 174,611 | 165,937 |
Home Equity Loan [Member] | Pass [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 170,749 | 162,626 |
Home Equity Loan [Member] | Special Mention [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 665 | 864 |
Home Equity Loan [Member] | Substandard [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 3,197 | 2,447 |
Home Equity Loan [Member] | Doubtful [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | ||
Construction Loans [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 49,548 | 37,925 |
Construction Loans [Member] | Pass [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | 49,548 | 37,925 |
Construction Loans [Member] | Special Mention [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | ||
Construction Loans [Member] | Substandard [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans | ||
Construction Loans [Member] | Doubtful [Member] | ||
Outstanding commercial and consumer loans by risk category | ||
Outstanding consumer loans |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses (Schedule of Aging of Past Due Loans) (Details) - Consumer Loan [Member] - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Outstanding commercial and consumer loans which include loans on nonaccrual status | ||
Current | $ 595,868 | $ 544,522 |
30-59 days past due | 430 | 2,691 |
60-89 days past due | 669 | 1,036 |
Greater than 90 days | 835 | 378 |
Total consumer loans | 597,802 | 548,627 |
Other Consumer [Member] | ||
Outstanding commercial and consumer loans which include loans on nonaccrual status | ||
Current | 27,064 | 23,603 |
30-59 days past due | 67 | 106 |
60-89 days past due | 113 | |
Greater than 90 days | ||
Total consumer loans | 27,131 | 23,822 |
Real Estate [Member] | ||
Outstanding commercial and consumer loans which include loans on nonaccrual status | ||
Current | 345,720 | 317,267 |
30-59 days past due | 2,555 | |
60-89 days past due | 187 | 923 |
Greater than 90 days | 605 | 198 |
Total consumer loans | 346,512 | 320,943 |
Home Equity Loan [Member] | ||
Outstanding commercial and consumer loans which include loans on nonaccrual status | ||
Current | 173,536 | 165,727 |
30-59 days past due | 363 | 30 |
60-89 days past due | 482 | |
Greater than 90 days | 230 | 180 |
Total consumer loans | 174,611 | 165,937 |
Construction Loans [Member] | ||
Outstanding commercial and consumer loans which include loans on nonaccrual status | ||
Current | 49,548 | 37,925 |
30-59 days past due | ||
60-89 days past due | ||
Greater than 90 days | ||
Total consumer loans | $ 49,548 | $ 37,925 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses (Schedule of Nonperforming Assets, Including Nonaccruing TDRs) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Summary of nonperforming assets | ||
Nonaccruing troubled debt restructurings | $ 2,763 | $ 2,541 |
Total nonaccrual loans, including nonaccruing TDRs | 7,028 | 5,830 |
Other real estate owned | ||
Total nonperforming assets | $ 7,028 | $ 5,830 |
Nonperforming assets as a percentage of: | ||
Total assets | 0.32% | 0.31% |
Gross loans | 0.38% | 0.35% |
Total loans over 90 days past due | $ 1,033 | $ 458 |
Loans over 90 days past due and still accruing | ||
Accruing troubled debt restructurings | 5,791 | 6,742 |
Commercial Loan [Member] | Owner Occupied Re [Member] | ||
Summary of nonperforming assets | ||
Nonaccruing | ||
Commercial Loan [Member] | Non Owner Occupied Re [Member] | ||
Summary of nonperforming assets | ||
Nonaccruing | 1,963 | 210 |
Commercial Loan [Member] | Business Loan [Member] | ||
Summary of nonperforming assets | ||
Nonaccruing | 198 | 81 |
Commercial Loan [Member] | Construction Loans [Member] | ||
Summary of nonperforming assets | ||
Nonaccruing | ||
Consumer Loan [Member] | Other Consumer [Member] | ||
Summary of nonperforming assets | ||
Nonaccruing | 12 | |
Consumer Loan [Member] | Construction Loans [Member] | ||
Summary of nonperforming assets | ||
Nonaccruing | ||
Consumer Loan [Member] | Real Estate Loan [Member] | ||
Summary of nonperforming assets | ||
Nonaccruing | 1,637 | 1,980 |
Consumer Loan [Member] | Home Equity Loan [Member] | ||
Summary of nonperforming assets | ||
Nonaccruing | $ 467 | $ 1,006 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses (Schedule of Key Information for Impaired Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Summary of key information for impaired loans | ||
Unpaid Principal Balance | $ 14,539 | $ 14,991 |
Impaired loans | 12,819 | 12,572 |
Impaired loans with no related allowance for loan losses | 7,932 | 6,344 |
Impaired loans with related allowance for loan losses | 4,887 | 6,228 |
Related allowance for loan losses | 1,514 | 2,014 |
Commercial Loan [Member] | ||
Summary of key information for impaired loans | ||
Unpaid Principal Balance | 9,448 | 9,893 |
Impaired loans | 8,481 | 8,089 |
Impaired loans with no related allowance for loan losses | 5,256 | 3,429 |
Impaired loans with related allowance for loan losses | 3,225 | 4,660 |
Related allowance for loan losses | 961 | 1,528 |
Commercial Loan [Member] | Owner Occupied Re [Member] | ||
Summary of key information for impaired loans | ||
Unpaid Principal Balance | 2,787 | 2,827 |
Impaired loans | 2,723 | 2,762 |
Impaired loans with no related allowance for loan losses | 2,277 | 2,311 |
Impaired loans with related allowance for loan losses | 446 | 451 |
Related allowance for loan losses | 75 | 75 |
Commercial Loan [Member] | Non Owner Occupied Re [Member] | ||
Summary of key information for impaired loans | ||
Unpaid Principal Balance | 4,474 | 3,321 |
Impaired loans | 4,034 | 2,807 |
Impaired loans with no related allowance for loan losses | 2,409 | 603 |
Impaired loans with related allowance for loan losses | 1,625 | 2,204 |
Related allowance for loan losses | 416 | 558 |
Commercial Loan [Member] | Business Loan [Member] | ||
Summary of key information for impaired loans | ||
Unpaid Principal Balance | 2,187 | 3,745 |
Impaired loans | 1,724 | 2,520 |
Impaired loans with no related allowance for loan losses | 570 | 515 |
Impaired loans with related allowance for loan losses | 1,154 | 2,005 |
Related allowance for loan losses | 470 | 895 |
Commercial Loan [Member] | Construction Loans [Member] | ||
Summary of key information for impaired loans | ||
Unpaid Principal Balance | ||
Impaired loans | ||
Impaired loans with no related allowance for loan losses | ||
Impaired loans with related allowance for loan losses | ||
Related allowance for loan losses | ||
Consumer Loan [Member] | ||
Summary of key information for impaired loans | ||
Unpaid Principal Balance | 5,091 | 5,098 |
Impaired loans | 4,338 | 4,483 |
Impaired loans with no related allowance for loan losses | 2,676 | 2,915 |
Impaired loans with related allowance for loan losses | 1,662 | 1,568 |
Related allowance for loan losses | 553 | 486 |
Consumer Loan [Member] | Other Consumer [Member] | ||
Summary of key information for impaired loans | ||
Unpaid Principal Balance | 150 | 170 |
Impaired loans | 150 | 170 |
Impaired loans with no related allowance for loan losses | ||
Impaired loans with related allowance for loan losses | 150 | 170 |
Related allowance for loan losses | 17 | 30 |
Consumer Loan [Member] | Construction Loans [Member] | ||
Summary of key information for impaired loans | ||
Unpaid Principal Balance | ||
Impaired loans | ||
Impaired loans with no related allowance for loan losses | ||
Impaired loans with related allowance for loan losses | ||
Related allowance for loan losses | ||
Consumer Loan [Member] | Real Estate Loan [Member] | ||
Summary of key information for impaired loans | ||
Unpaid Principal Balance | 2,674 | 2,993 |
Impaired loans | 2,534 | 2,892 |
Impaired loans with no related allowance for loan losses | 1,434 | 1,494 |
Impaired loans with related allowance for loan losses | 1,100 | 1,398 |
Related allowance for loan losses | 438 | 456 |
Consumer Loan [Member] | Home Equity Loan [Member] | ||
Summary of key information for impaired loans | ||
Unpaid Principal Balance | 2,267 | 1,935 |
Impaired loans | 1,654 | 1,421 |
Impaired loans with no related allowance for loan losses | 1,242 | 1,421 |
Impaired loans with related allowance for loan losses | 412 | |
Related allowance for loan losses | $ 98 |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Losses (Average Recorded Investment and Interest Income Recognized on Impaired Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Average recorded investment and interest income recognized on impaired loans | |||||
Average recorded investment | $ 13,238 | $ 13,084 | $ 13,551 | $ 13,211 | $ 13,084 |
Recognized interest income | 177 | 166 | 542 | 532 | 733 |
Commercial Loan [Member] | |||||
Average recorded investment and interest income recognized on impaired loans | |||||
Average recorded investment | 8,543 | 8,799 | 8,647 | 8,893 | 8,527 |
Recognized interest income | 115 | 114 | 359 | 353 | 478 |
Commercial Loan [Member] | Owner Occupied Re [Member] | |||||
Average recorded investment and interest income recognized on impaired loans | |||||
Average recorded investment | 2,728 | 2,786 | 2,742 | 2,792 | 2,784 |
Recognized interest income | 27 | 41 | 96 | 103 | 142 |
Commercial Loan [Member] | Non Owner Occupied Re [Member] | |||||
Average recorded investment and interest income recognized on impaired loans | |||||
Average recorded investment | 4,077 | 3,048 | 4,139 | 3,070 | 2,860 |
Recognized interest income | 74 | 29 | 202 | 127 | 174 |
Commercial Loan [Member] | Business Loan [Member] | |||||
Average recorded investment and interest income recognized on impaired loans | |||||
Average recorded investment | 1,738 | 2,965 | 1,766 | 3,031 | 2,883 |
Recognized interest income | 14 | 44 | 61 | 123 | 162 |
Commercial Loan [Member] | Construction Loans [Member] | |||||
Average recorded investment and interest income recognized on impaired loans | |||||
Average recorded investment | |||||
Recognized interest income | |||||
Consumer Loan [Member] | |||||
Average recorded investment and interest income recognized on impaired loans | |||||
Average recorded investment | 4,695 | 4,285 | 4,904 | 4,318 | 4,557 |
Recognized interest income | 62 | 52 | 183 | 179 | 255 |
Consumer Loan [Member] | Other Consumer [Member] | |||||
Average recorded investment and interest income recognized on impaired loans | |||||
Average recorded investment | 151 | 162 | 154 | 164 | 174 |
Recognized interest income | 2 | 1 | 4 | 4 | 5 |
Consumer Loan [Member] | Construction Loans [Member] | |||||
Average recorded investment and interest income recognized on impaired loans | |||||
Average recorded investment | |||||
Recognized interest income | |||||
Consumer Loan [Member] | Real Estate Loan [Member] | |||||
Average recorded investment and interest income recognized on impaired loans | |||||
Average recorded investment | 2,876 | 2,850 | 3,062 | 2,871 | 2,930 |
Recognized interest income | 30 | 34 | 97 | 114 | 151 |
Consumer Loan [Member] | Home Equity Loan [Member] | |||||
Average recorded investment and interest income recognized on impaired loans | |||||
Average recorded investment | 1,668 | 1,273 | 1,688 | 1,283 | 1,453 |
Recognized interest income | $ 30 | $ 17 | $ 82 | $ 61 | $ 99 |
Loans and Allowance for Loan_13
Loans and Allowance for Loan Losses (Allowance for Loan Losses by Commercial and Consumer Portfolio Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Financing Receivable, Allowance For Credit Losses [Roll Forward] | ||||
Balance, beginning of period | $ 16,144 | $ 16,100 | $ 15,762 | $ 15,523 |
Provision for loan losses | 650 | 400 | 1,250 | 1,300 |
Loan charge-offs | (963) | (556) | (1,240) | (1,159) |
Loan recoveries | 17 | 196 | 76 | 476 |
Net loan charge-offs | (946) | (360) | (1,164) | (683) |
Balance, end of period | $ 15,848 | $ 16,140 | $ 15,848 | $ 16,140 |
Net charge-offs to average loans (annualized) | 0.21% | 0.09% | 0.09% | 0.06% |
Allowance for loan losses to gross loans | 0.86% | 1.00% | ||
Allowance for loan losses to nonperforming loans | 225.51% | 270.53% | ||
Commercial Loan [Member] | ||||
Financing Receivable, Allowance For Credit Losses [Roll Forward] | ||||
Balance, beginning of period | $ 10,768 | |||
Balance, end of period | $ 10,777 | 10,777 | ||
Commercial Loan [Member] | Owner Occupied Re [Member] | ||||
Financing Receivable, Allowance For Credit Losses [Roll Forward] | ||||
Balance, beginning of period | 2,808 | $ 2,699 | 2,726 | $ 2,534 |
Provision for loan losses | (75) | 71 | 117 | 236 |
Loan charge-offs | (110) | |||
Loan recoveries | ||||
Net loan charge-offs | (110) | |||
Balance, end of period | 2,733 | 2,770 | 2,733 | 2,770 |
Commercial Loan [Member] | Non Owner Occupied Re [Member] | ||||
Financing Receivable, Allowance For Credit Losses [Roll Forward] | ||||
Balance, beginning of period | 4,016 | 3,581 | 3,811 | 3,230 |
Provision for loan losses | 237 | 379 | 454 | 857 |
Loan charge-offs | (225) | (239) | (234) | |
Loan recoveries | 25 | 2 | 132 | |
Net loan charge-offs | (225) | 25 | (237) | (102) |
Balance, end of period | 4,028 | 3,985 | 4,028 | 3,985 |
Commercial Loan [Member] | Business Loan [Member] | ||||
Financing Receivable, Allowance For Credit Losses [Roll Forward] | ||||
Balance, beginning of period | 3,623 | 3,849 | 3,616 | 3,848 |
Provision for loan losses | 588 | (17) | 577 | (31) |
Loan charge-offs | (709) | (536) | (709) | (655) |
Loan recoveries | 8 | 89 | 26 | 223 |
Net loan charge-offs | (701) | (447) | (683) | (432) |
Balance, end of period | 3,510 | 3,385 | 3,510 | 3,385 |
Commercial Loan [Member] | Construction Loans [Member] | ||||
Financing Receivable, Allowance For Credit Losses [Roll Forward] | ||||
Balance, beginning of period | 569 | 544 | 615 | 325 |
Provision for loan losses | (63) | (44) | (109) | 175 |
Loan charge-offs | ||||
Loan recoveries | ||||
Net loan charge-offs | ||||
Balance, end of period | 506 | 500 | 506 | 500 |
Consumer Loan [Member] | ||||
Financing Receivable, Allowance For Credit Losses [Roll Forward] | ||||
Balance, beginning of period | 4,994 | |||
Balance, end of period | 5,071 | 5,071 | ||
Consumer Loan [Member] | Other Consumer [Member] | ||||
Financing Receivable, Allowance For Credit Losses [Roll Forward] | ||||
Balance, beginning of period | 297 | 268 | 290 | 281 |
Provision for loan losses | 34 | 22 | 85 | 41 |
Loan charge-offs | (29) | (20) | (82) | (54) |
Loan recoveries | 1 | 1 | 10 | 3 |
Net loan charge-offs | (28) | (19) | (72) | (51) |
Balance, end of period | 303 | 271 | 303 | 271 |
Consumer Loan [Member] | Construction Loans [Member] | ||||
Financing Receivable, Allowance For Credit Losses [Roll Forward] | ||||
Balance, beginning of period | 318 | 282 | 275 | 210 |
Provision for loan losses | 8 | (7) | 51 | 65 |
Loan charge-offs | ||||
Loan recoveries | ||||
Net loan charge-offs | ||||
Balance, end of period | 326 | 275 | 326 | 275 |
Consumer Loan [Member] | Real Estate Loan [Member] | ||||
Financing Receivable, Allowance For Credit Losses [Roll Forward] | ||||
Balance, beginning of period | 3,104 | 3,446 | 3,081 | 3,495 |
Provision for loan losses | (93) | 89 | (99) | 114 |
Loan charge-offs | (76) | |||
Loan recoveries | 7 | 1 | 36 | 3 |
Net loan charge-offs | 7 | 1 | 36 | (73) |
Balance, end of period | 3,018 | 3,536 | 3,018 | 3,536 |
Consumer Loan [Member] | Home Equity Loan [Member] | ||||
Financing Receivable, Allowance For Credit Losses [Roll Forward] | ||||
Balance, beginning of period | 1,409 | 1,431 | 1,348 | 1,600 |
Provision for loan losses | 14 | (93) | 174 | (157) |
Loan charge-offs | (100) | (140) | ||
Loan recoveries | 1 | 80 | 2 | 115 |
Net loan charge-offs | 1 | 80 | (98) | (25) |
Balance, end of period | $ 1,424 | $ 1,418 | $ 1,424 | $ 1,418 |
Loans and Allowance for Loan_14
Loans and Allowance for Loan Losses (Allowance for Loan Losses and Recorded Investment in Loans by Impairment) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Allowance for Loan Losses and Recorded Investment in Loans by Impairment | ||||||
Allowance for loan losses, Individually evaluated | $ 1,514 | $ 2,014 | ||||
Recorded investment in loans, Individually evaluated | 12,819 | 12,572 | ||||
Allowance for loan losses, Collectively evaluated | 14,334 | 13,748 | ||||
Recorded investment in loans, Collectively evaluated | 1,825,608 | 1,664,760 | ||||
Allowance for loan losses, Total | 15,848 | $ 16,144 | 15,762 | $ 16,140 | $ 16,100 | $ 15,523 |
Recorded investment in loans, Total | 1,838,427 | 1,677,332 | ||||
Commercial Loan [Member] | ||||||
Allowance for Loan Losses and Recorded Investment in Loans by Impairment | ||||||
Allowance for loan losses, Individually evaluated | 961 | 1,528 | ||||
Recorded investment in loans, Individually evaluated | 8,481 | 8,089 | ||||
Allowance for loan losses, Collectively evaluated | 9,816 | 9,240 | ||||
Recorded investment in loans, Collectively evaluated | 1,232,144 | 1,120,616 | ||||
Allowance for loan losses, Total | 10,777 | 10,768 | ||||
Recorded investment in loans, Total | 1,240,625 | 1,128,705 | ||||
Consumer Loan [Member] | ||||||
Allowance for Loan Losses and Recorded Investment in Loans by Impairment | ||||||
Allowance for loan losses, Individually evaluated | 553 | 486 | ||||
Recorded investment in loans, Individually evaluated | 4,338 | 4,483 | ||||
Allowance for loan losses, Collectively evaluated | 4,518 | 4,508 | ||||
Recorded investment in loans, Collectively evaluated | 593,464 | 544,144 | ||||
Allowance for loan losses, Total | 5,071 | 4,994 | ||||
Recorded investment in loans, Total | $ 597,802 | $ 548,627 |
Troubled Debt Restructurings (S
Troubled Debt Restructurings (Summary of Concession at the Time Of Modification) (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019USD ($)Investments | Sep. 30, 2018USD ($)Investments | |
Summary of concession at the time of modification and the recorded investment in TDRs before and after their modification | ||
Renewals deemed a concession | 1 | 7 |
Reduced or deferred payments | ||
Converted to interest only | ||
Maturity date extensions | ||
Total number of loans | 1 | 7 |
Pre-modification outstanding recorded investment | $ | $ 832 | $ 2,262 |
Post-modification outstanding recorded investment | $ | $ 832 | $ 2,793 |
Consumer Loan [Member] | Home Equity Loan [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 | $ | $ 832 | |
Post-modification outstanding recorded investment | $ | $ 832 | |
Consumer Loan [Member] | Real Estate Loan [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 | |
Commercial Loan [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 Loan [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 | |
Reduced or deferred payments | ||
Converted to interest only | ||
Maturity date extensions | ||
Total number of loans | 4 | |
Pre-modification outstanding recorded investment | $ | $ 1,207 | |
Post-modification outstanding recorded investment | $ | $ 1,532 |
Troubled Debt Restructurings (N
Troubled Debt Restructurings (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)Investments | Dec. 31, 2018USD ($)Investments | |
Troubled Debt Restructurings (Textual) | |||
Total number of loans classified under troubled debt restructurings (TDRs) | Investments | 20 | 26 | |
Total sum of loans classified as troubled debt restructurings (TDRs) | $ | $ 8,600 | $ 9,300 | |
Number of months previous loan payment defaulted | 12 months | 12 months | |
Commercial Loan [Member] | Owner occupied RE [Member] | Real Estate Loan [Member] | |||
Troubled Debt Restructurings (Textual) | |||
Total number of loans classified under troubled debt restructurings (TDRs) | Investments | 1 | ||
Pre-modification and post-modification balance of loan | $ | $ 1,300 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Schedule of Outstanding Financial Derivative Instruments) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Interest Rate Lock Commitments [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional | $ 53,426 | $ 20,552 |
Balance Sheet Location, description | Other assets | Other assets |
Fair Value, Asset/(Liability) | $ 682 | $ 345 |
Securities Sold, Not yet Purchased [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional | $ 37,000 | $ 11,750 |
Balance Sheet Location, description | Other liabilities | Other liabilities |
Fair Value, Asset/(Liability) | $ (71) | $ (121) |
Derivative [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional | 90,426 | 32,302 |
Fair Value, Asset/(Liability) | $ 611 | $ 224 |
Fair Value Accounting (Schedule
Fair Value Accounting (Schedule of Assets And Liabilities Measured at Fair Value on Recurring Basis) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Securities available for sale | ||
US government agencies | $ 13,765 | $ 8,782 |
SBA securities | 3,804 | 3,525 |
State and political subdivisions | 9,240 | 8,356 |
Asset-backed securities | 12,273 | 9,558 |
Mortgage-backed securities | 50,345 | 44,684 |
Mortgage loans held for sale | 40,630 | 9,241 |
Mortgage loan interest rate lock commitments | 682 | 345 |
Total assets measured at fair value on a recurring basis | 130,739 | 84,491 |
Liabilities | ||
MBS forward sales commitments | 71 | 121 |
Total liabilities measured at fair value on a recurring basis | 71 | 121 |
Fair Value, Inputs, 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 | ||
Mortgage loan 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, Inputs, Level 2 [Member] | ||
Securities available for sale | ||
US government agencies | 13,765 | 8,782 |
SBA securities | 3,804 | 3,525 |
State and political subdivisions | 9,240 | 8,356 |
Asset-backed securities | 12,273 | 9,558 |
Mortgage-backed securities | 50,345 | 44,684 |
Mortgage loans held for sale | 40,630 | 9,241 |
Mortgage loan interest rate lock commitments | 682 | 345 |
Total assets measured at fair value on a recurring basis | 130,739 | 84,491 |
Liabilities | ||
MBS forward sales commitments | 71 | 121 |
Total liabilities measured at fair value on a recurring basis | 71 | 121 |
Fair Value, Inputs, 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 | ||
Mortgage loan 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 (Schedu_2
Fair Value Accounting (Schedule of Assets And Liabilities Measured at Fair Value on Nonrecurring Basis) (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Assets | ||
Impaired loans | $ 11,305 | $ 10,558 |
Total assets measured at fair value on a nonrecurring basis | 11,305 | 10,558 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets | ||
Impaired loans | ||
Total assets measured at fair value on a nonrecurring basis | ||
Fair Value, Inputs, Level 2 [Member] | ||
Assets | ||
Impaired loans | 4,357 | 2,190 |
Total assets measured at fair value on a nonrecurring basis | 4,357 | 2,190 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets | ||
Impaired loans | 6,948 | 8,368 |
Total assets measured at fair value on a nonrecurring basis | $ 6,948 | $ 8,368 |
Fair Value Accounting (Schedu_3
Fair Value Accounting (Schedule of Estimated Fair Values of the Company's Financial Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Financial Assets: | |||
Other investments, at cost, Carrying Amount | $ 3,307 | $ 4,121 | |
Loans, Carrying Amount | [1] | 1,809,760 | 1,648,998 |
Other investments, at cost, Fair Value | 3,307 | 4,121 | |
Loans, Fair Value | [1] | 1,787,368 | 1,618,618 |
Financial Liabilities: | |||
Deposits, Carrying Amount | 1,899,295 | 1,648,136 | |
FHLB and other borrowings, Carrying Amount | 25,000 | 50,000 | |
Junior subordinated debentures, Carrying Amount | 35,887 | 13,403 | |
Deposits, Fair Value | 1,809,500 | 1,515,123 | |
FHLB and other borrowings, Fair Value | 26,166 | 50,147 | |
Junior subordinated debentures, Fair Value | 33,567 | 14,807 | |
Estimate Of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 1 [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 | |||
Estimate Of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Financial Assets: | |||
Other investments, at cost, Fair Value | |||
Loans, Fair Value | [1] | ||
Financial Liabilities: | |||
Deposits, Fair Value | 1,809,500 | 1,515,123 | |
FHLB and other borrowings, Fair Value | 26,166 | 50,147 | |
Junior subordinated debentures, Fair Value | 33,567 | 14,807 | |
Estimate Of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Financial Assets: | |||
Other investments, at cost, Fair Value | 3,307 | 4,121 | |
Loans, Fair Value | [1] | 1,787,368 | 1,618,618 |
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. |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Leases (Textual) | ||
Weighted average remaining life | 7 years 8 months 23 days | 7 years 8 months 23 days |
Weighted average discount rate | 3.02% | 3.02% |
Operating lease costs | $ 533 | $ 1,600 |
Operating lease, right-of-use asset | 16,100 | 16,100 |
Lease liabilities | $ 16,682 | $ 16,682 |
Leases (Maturities of lease lia
Leases (Maturities of lease liabilities) (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 483 |
2020 | 1,963 |
2021 | 2,008 |
2022 | 1,252 |
2023 | 1,120 |
Thereafter | 14,227 |
Total undiscounted lease payments | 21,053 |
Discount effect of cash flows | 4,371 |
Total lease liability | $ 16,682 |
Earnings Per Common Share (Narr
Earnings Per Common Share (Narrative) (Details) - shares | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Common Share (Textual) | ||
Antidilutive securities excluded from computation of earnings per share, amount | 259,656 | 181,892 |
Earnings Per Common Share (Sche
Earnings Per Common Share (Schedule of earnings per share calculation) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Numerator: | ||||
Net income available to common shareholders | $ 7,412 | $ 5,782 | $ 20,661 | $ 16,506 |
Denominator: | ||||
Weighted-average common shares outstanding - basic | 7,548,184 | 7,400,174 | 7,501,337 | 7,369,473 |
Common stock equivalents | 232,320 | 346,031 | 258,274 | 372,010 |
Weighted-average common shares outstanding - diluted | 7,780,504 | 7,746,205 | 7,759,611 | 7,741,483 |
Earnings per common share: | ||||
Basic | $ 0.98 | $ 0.78 | $ 2.75 | $ 2.24 |
Diluted | $ 0.95 | $ 0.75 | $ 2.66 | $ 2.13 |
Reportable Segments (Narrative)
Reportable Segments (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2019Investments | |
Reportable Segments (Textual) | |
Number of segments | 3 |
Reportable Segments (Schedule o
Reportable Segments (Schedule of financial information for each reportable segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Interest income | $ 24,056 | $ 19,865 | $ 68,756 | $ 55,578 | |
Interest expense | 6,777 | 4,364 | 19,120 | 11,423 | |
Net interest income (loss) | 17,279 | 15,501 | 49,636 | 44,155 | |
Provision for loan losses | 650 | 400 | 1,250 | 1,300 | |
Noninterest income | 4,396 | 2,533 | 11,480 | 7,725 | |
Noninterest expense | 11,484 | 10,188 | 33,500 | 29,372 | |
Net income (loss) before taxes | 9,541 | 7,446 | 26,366 | 21,208 | |
Income tax provision (benefit) | 2,129 | 1,664 | 5,705 | 4,702 | |
Net income (loss) | 7,412 | 5,782 | 20,661 | 16,506 | |
Total assets | 2,201,626 | 1,857,707 | 2,201,626 | 1,857,707 | $ 1,900,614 |
Commercial And Retail Banking [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Interest income | 23,830 | 19,775 | 68,283 | 55,290 | |
Interest expense | 6,628 | 4,212 | 18,649 | 10,993 | |
Net interest income (loss) | 17,202 | 15,563 | 49,634 | 44,297 | |
Provision for loan losses | 650 | 400 | 1,250 | 1,300 | |
Noninterest income | 1,341 | 1,179 | 3,739 | 3,414 | |
Noninterest expense | 9,529 | 9,046 | 28,604 | 25,982 | |
Net income (loss) before taxes | 8,364 | 7,296 | 23,519 | 20,429 | |
Income tax provision (benefit) | 1,882 | 1,632 | 5,107 | 4,538 | |
Net income (loss) | 6,482 | 5,664 | 18,412 | 15,891 | |
Total assets | 2,187,449 | 1,847,633 | 2,187,449 | 1,847,633 | |
Mortgage Banking [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Interest income | 226 | 90 | 473 | 288 | |
Interest expense | |||||
Net interest income (loss) | 226 | 90 | 473 | 288 | |
Provision for loan losses | |||||
Noninterest income | 3,055 | 1,354 | 7,741 | 4,311 | |
Noninterest expense | 1,895 | 1,082 | 4,716 | 3,210 | |
Net income (loss) before taxes | 1,386 | 362 | 3,498 | 1,389 | |
Income tax provision (benefit) | 291 | 76 | 735 | 292 | |
Net income (loss) | 1,095 | 286 | 2,763 | 1,097 | |
Total assets | 13,765 | 9,649 | 13,765 | 9,649 | |
Corporate Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Interest income | 4 | 2 | 9 | 6 | |
Interest expense | 153 | 154 | 480 | 436 | |
Net interest income (loss) | (149) | (152) | (471) | (430) | |
Provision for loan losses | |||||
Noninterest income | |||||
Noninterest expense | 60 | 60 | 180 | 180 | |
Net income (loss) before taxes | (209) | (212) | (651) | (610) | |
Income tax provision (benefit) | (44) | (44) | (137) | (128) | |
Net income (loss) | (165) | (168) | (514) | (482) | |
Total assets | 234,845 | 180,420 | 234,845 | 180,420 | |
Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Interest income | (4) | (2) | (9) | (6) | |
Interest expense | (4) | (2) | (9) | (6) | |
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 | $ (234,433) | $ (179,995) | $ (234,433) | $ (179,995) |