Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 28, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | UNITED SECURITY BANCSHARES | ||
Entity Central Index Key | 1,137,547 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 74,765,669 | ||
Entity Common Stock, Shares Outstanding | 16,708,108 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and non-interest bearing deposits in other banks | $ 25,781 | $ 29,733 |
Cash and due from Federal Reserve Bank | 87,251 | 96,018 |
Cash and cash equivalents | 113,032 | 125,751 |
Interest-bearing deposits in other banks | 650 | 1,528 |
Investment securities available for sale (at fair value) | 57,491 | 30,893 |
Loans | 569,759 | 515,318 |
Unearned fees and unamortized loan origination costs, net | 1,075 | 58 |
Allowance for credit losses | (8,902) | (9,713) |
Net loans | 561,932 | 505,663 |
Accrued interest receivable | 3,895 | 2,220 |
Premises and equipment – net | 10,445 | 10,800 |
Other real estate owned | 6,471 | 12,873 |
Goodwill | 4,488 | 4,488 |
Cash surrender value of life insurance | 19,047 | 18,337 |
Investment in limited partnerships | 757 | 917 |
Deferred tax assets - net | 3,298 | 5,228 |
Other assets | 6,466 | 6,946 |
Total assets | 787,972 | 725,644 |
Deposits | ||
Noninterest bearing | 262,697 | 262,168 |
Interest bearing | 413,932 | 359,637 |
Total deposits | 676,629 | 621,805 |
Accrued interest payable | 76 | 29 |
Accounts payable and other liabilities | 5,781 | 5,875 |
Junior subordinated debentures (at fair value) | 8,832 | 8,300 |
Total liabilities | 691,318 | 636,009 |
Shareholders' Equity | ||
Common stock, no par value 20,000,000 shares authorized, 16,705,294 issued and outstanding at December 31, 2016, and 16,051,406 at December 31, 2015 | 56,557 | 52,572 |
Retained earnings | 40,701 | 37,265 |
Accumulated other comprehensive loss | (604) | (202) |
Total shareholders' equity | 96,654 | 89,635 |
Total liabilities and shareholders' equity | $ 787,972 | $ 725,644 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Shareholders' Equity | ||
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 16,705,294 | 16,051,406 |
Common stock, shares outstanding (in shares) | 16,705,294 | 16,051,406 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Interest Income | |||
Loans, including fees | $ 28,182 | $ 26,469 | $ 23,777 |
Investment securities – AFS – taxable | 825 | 722 | 901 |
Interest on deposits in FRB | 458 | 213 | 277 |
Interest on deposits in other banks | 8 | 6 | 7 |
Total interest income | 29,473 | 27,410 | 24,962 |
Interest Expense | |||
Interest on deposits | 1,167 | 1,056 | 1,104 |
Interest on other borrowings | 242 | 225 | 241 |
Total interest expense | 1,409 | 1,281 | 1,345 |
Net Interest Income Before Recovery of Provision for Credit Losses | 28,064 | 26,129 | 23,617 |
Recovery of Provision for Credit Losses | (21) | (41) | (845) |
Net Interest Income after Recovery of Provision for Credit Losses | 28,085 | 26,170 | 24,462 |
Noninterest Income | |||
Customer service fees | 3,792 | 3,620 | 3,473 |
Increase in cash surrender value of bank owned life insurance | 530 | 519 | 514 |
Loss on fair value of financial liability | (518) | (73) | (102) |
Gain on redemption of JR subordinated debentures | 0 | 78 | 0 |
Gain on sale of premises and equipment | 0 | 10 | 25 |
(Loss) gain on sale of other investment | 0 | (23) | 691 |
Other | 710 | 604 | 560 |
Total noninterest income | 4,514 | 4,735 | 5,161 |
Noninterest Expense | |||
Salaries and employee benefits | 10,628 | 9,921 | 9,653 |
Occupancy expense | 4,222 | 4,042 | 3,760 |
Data processing | 148 | 126 | 134 |
Professional fees | 1,493 | 1,137 | 1,456 |
Regulatory assessments | 767 | 959 | 943 |
Director fees | 284 | 277 | 232 |
Amortization of intangibles | 0 | 0 | 62 |
Correspondent bank service charges | 77 | 75 | 117 |
Loss on California tax credit partnership | 158 | 73 | 39 |
Net cost on operation and sale of OREO | 263 | 619 | 571 |
Other | 2,305 | 2,369 | 2,248 |
Total noninterest expense | 20,345 | 19,598 | 19,215 |
Income Before Provision for Taxes | 12,254 | 11,307 | 10,408 |
Provision for Taxes on Income | 4,869 | 4,497 | 4,192 |
Net Income | $ 7,385 | $ 6,810 | $ 6,216 |
Net Income per common share | |||
Basic (dollars per share) | $ 0.44 | $ 0.41 | $ 0.37 |
Diluted (dollars per share) | $ 0.44 | $ 0.41 | $ 0.37 |
Shares on which net income per common share were based | |||
Basic (in shares) | 16,703,672 | 16,702,781 | 16,686,896 |
Diluted (in shares) | 16,710,808 | 16,704,937 | 16,692,646 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 7,385 | $ 6,810 | $ 6,216 |
Unrealized (losses) gains on securities | (648) | (265) | 18 |
Unrealized (losses) gains on unrecognized post retirement costs | (22) | 224 | (113) |
Other comprehensive loss, before tax | (670) | (41) | (95) |
Tax benefit (expense) related to securities | 259 | 106 | (7) |
Tax benefit (expense) related to unrecognized post-retirement costs | 9 | (92) | 46 |
Total other comprehensive loss | (402) | (27) | (56) |
Comprehensive income | $ 6,983 | $ 6,783 | $ 6,160 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common stock | Retained Earnings | Accumulated Other Comprehensive Loss | Restricted Stock2015 Plan |
Balance at Dec. 31, 2013 | $ 76,543 | $ 45,778 | $ 30,884 | $ (119) | |
Balance (in shares) at Dec. 31, 2013 | 14,799,888 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Other comprehensive loss | (56) | (56) | |||
Common stock dividends | 0 | $ 3,370 | (3,370) | ||
Common stock dividends (in shares) | 601,276 | ||||
Common stock issuance | 95 | $ 95 | |||
Common stock issuance (in shares) | 23,922 | ||||
Stock-based compensation expense | 28 | $ 28 | |||
Net Income | 6,216 | 6,216 | |||
Balance at Dec. 31, 2014 | 82,826 | $ 49,271 | 33,730 | (175) | |
Balance (in shares) at Dec. 31, 2014 | 15,425,086 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Other comprehensive loss | (27) | (27) | |||
Common stock dividends | $ 0 | $ 3,275 | (3,275) | ||
Common stock dividends (in shares) | 626,320 | ||||
Stock options exercised (in shares) | 0 | ||||
Stock-based compensation expense | $ 26 | $ 26 | |||
Net Income | 6,810 | 6,810 | |||
Balance at Dec. 31, 2015 | $ 89,635 | $ 52,572 | 37,265 | (202) | |
Balance (in shares) at Dec. 31, 2015 | 16,051,406 | 16,051,406 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Non-vested awards (in shares) | 14,870 | ||||
Other comprehensive loss | $ (402) | (402) | |||
Common stock dividends | 0 | $ 3,949 | (3,949) | ||
Common stock dividends (in shares) | 651,425 | ||||
Common stock issuance | 6 | $ 6 | |||
Stock options exercised (in shares) | 2,463 | ||||
Stock-based compensation expense | 30 | $ 30 | |||
Net Income | 7,385 | 7,385 | |||
Balance at Dec. 31, 2016 | $ 96,654 | $ 56,557 | $ 40,701 | $ (604) | |
Balance (in shares) at Dec. 31, 2016 | 16,705,294 | 16,705,294 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Non-vested awards (in shares) | 11,896 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flows From Operating Activities: | |||
Net Income | $ 7,385 | $ 6,810 | $ 6,216 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Recovery of provision for credit losses | (21) | (41) | (845) |
Depreciation and amortization | 1,428 | 1,462 | 1,390 |
Amortization of investment securities | 481 | 266 | 263 |
Accretion of investment securities | (28) | (44) | (33) |
Increase in accrued interest receivable | (1,676) | (293) | (283) |
Increase (decrease) in accrued interest payable | 47 | (11) | (4) |
(Increase) decrease in unearned fees | (1,017) | (382) | 20 |
Decrease (increase) in income taxes receivable | 957 | (229) | (398) |
Stock-based compensation expense | 30 | 26 | 28 |
Provision for deferred income taxes | 2,199 | 1,640 | 4,816 |
(Decrease) increase in accounts payable and accrued liabilities | (146) | 29 | (1,113) |
Loss (gain) on sale of investment in limited partnership | 0 | 23 | (691) |
Gain on sale of other real estate owned | (37) | (16) | (114) |
Impairment loss on other real estate owned | 0 | 188 | 0 |
Loss on fair value option of financial liabilities | 518 | 73 | 102 |
Gain on redemption of junior subordinated debentures | 0 | (78) | 0 |
Increase in surrender value of life insurance | (530) | (519) | (514) |
Loss on tax credit limited partnership interest | 158 | 73 | 39 |
Gain on sale of premises and equipment | 0 | (10) | (25) |
Amortization of intangibles | 0 | 0 | 62 |
Net (increase) decrease in other assets | (290) | 297 | 86 |
Net cash provided by operating activities | 9,458 | 9,264 | 9,002 |
Cash Flows From Investing Activities: | |||
Net increase (decrease) in interest-bearing deposits with banks | 878 | (6) | (7) |
Purchase of correspondent bank stock | (101) | (147) | (97) |
Maturities and calls on available-for-sale securities | 2,600 | 11,000 | 0 |
Principal payments on available-for-sale securities | 4,687 | 5,922 | 5,295 |
Purchases of available-for-sale securities | (34,987) | 0 | (10,192) |
Purchase of bank-owned life insurance/company-owned life insurance | (220) | (220) | 0 |
Net increase in loans | (51,465) | (58,642) | (60,282) |
Cash proceeds from sales of other real estate owned | 3,378 | 1,192 | 1,308 |
Payoff of senior liens on other real estate owned | (705) | 0 | 0 |
Cash proceeds from sale of other investment | 0 | 0 | 1,253 |
Cash proceeds from sales of premises and equipment | 0 | 23 | 0 |
Capital expenditures for premises and equipment | (1,073) | (725) | (768) |
Distributions from (investment in) limited partnership | 1 | (119) | (126) |
Net cash used in investing activities | (77,007) | (41,722) | (63,616) |
Cash Flows From Financing Activities: | |||
Net increase in demand deposit and savings accounts | 20,993 | 65,418 | 28,225 |
Net increase (decrease) in certificates of deposit | 33,831 | (8,986) | (5,341) |
Proceeds from exercise of stock options | 6 | 0 | 95 |
Redemption of junior subordinated debentures | 0 | (1,800) | 0 |
Net cash provided by financing activities | 54,830 | 54,632 | 22,979 |
Net (decrease) increase in cash and cash equivalents | (12,719) | 22,174 | (31,635) |
Cash and cash equivalents at beginning of year | 125,751 | 103,577 | 135,212 |
Cash and cash equivalents at end of year | $ 113,032 | $ 125,751 | $ 103,577 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting and Reporting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Organization and Summary of Significant Accounting and Reporting Policies [Abstract] | |
Organization and Summary of Significant Accounting and Reporting Policies | Organization and Summary of Significant Accounting and Reporting Policies Basis of Presentation – The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States and with prevailing practices within the banking industry. The consolidated financial statements include the accounts of United Security Bancshares, and its wholly owned subsidiaries, United Security Bank and subsidiary (the “Bank”) and USB Capital Trust II (the "Trust"). The Trust is deconsolidated pursuant to ASC 810. As a result, the Trust Preferred Securities are not presented on the Company’s consolidated financial statements as equity, but instead they are presented as Junior Subordinated Debentures are presented as a separate liability category. (see Note 8 to the Company’s consolidated financial statements). Intercompany accounts and transactions have been eliminated in consolidation. In the following notes, references to the Bank are references to United Security Bank. References to the Company are references to United Security Bancshares, (including the Bank). United Security Bancshares operates as one business segment providing banking services to commercial establishments and individuals primarily in the San Joaquin Valley of California. Nature of Operations – United Security Bancshares is a bank holding company, incorporated in the state of California for the purpose of acquiring all the capital stock of the Bank through a holding company reorganization (the “Reorganization”) of the Bank. The Reorganization, which was accounted for in a manner similar to a pooling of interests, was completed on June 12, 2001. Management believes the Reorganization has provided the Company greater operating and financial flexibility and has permitted expansion into a broader range of financial services and other business activities. During July 2007 the Company formed USB Capital Trust II and issued $15.0 million in Trust Preferred Securities with terms similar to those originally issued under USB Capital Trust I. During 2015, the Bank purchased $3.0 million of the Company's junior subordinated debentures related to the Company's trust preferred securities at a fair value discount of 40% . Subsequently, the Company purchased those shares from the Bank and canceled $3.0 million in par value of the junior subordinated debentures, realizing a $78,000 gain on redemption. The contractual principal balance of the Company's debentures relating to its trust preferred securities is $12.0 million as of December 31, 2016 . (See Note 8. “Junior Subordinated Debt/Trust Preferred Securities”). USB Investment Trust Inc was incorporated effective December 31, 2001, as a special purpose real estate investment trust (“REIT”) under Maryland law. The REIT is a subsidiary of the Bank and was funded with $133.0 million in real estate-secured loans contributed by the Bank. USB Investment Trust was originally formed to give the Bank flexibility in raising capital, and reduce the expenses associated with holding the assets contributed to USB Investment Trust. The Bank was founded in 1987 and currently operates eleven branches and one construction lending office in an area from eastern Madera County to western Fresno County, as well as Taft and Bakersfield in Kern County, and Campbell in Santa Clara County. The Bank also operates one financial services department located in Fresno, California. The Bank’s primary source of revenue is interest income through providing loans to customers, who are predominantly small and middle-market businesses and individuals. The Bank engages in a full compliment of lending activities, including real estate mortgage, commercial and industrial, real estate construction, agricultural and consumer loans, with particular emphasis on short and medium term obligations. The Bank offers a wide range of deposit instruments. These include personal and business checking accounts and savings accounts, interest-bearing negotiable order of withdrawal (NOW) accounts, money market accounts and time certificates of deposit. Most of the Bank's deposits are attracted from individuals and from small and medium-sized business-related sources. The Bank also offers a wide range of specialized services designed to attract and service the needs of commercial customers and account holders. These services include cashiers checks, travelers checks, money orders, and foreign drafts. In addition, the Bank offers Internet banking services to its commercial and retail customers, and offers certain financial and wealth management services through its financial services department. The Bank does not operate a trust department, however it makes arrangements with its correspondent bank to offer trust services to its customers upon request. Use of Estimates in the Preparation of Financial Statements - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change, relate to the determination of the allowance for loan losses, determination of goodwill, fair value of junior subordinated debt and certain collateralized mortgage obligations, and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. Subsequent events —The Company has evaluated events and transactions for potential recognition or disclosure through the day the financial statements were issued. Significant Accounting Policies - The Company follows accounting standards set by the Financial Accounting Standards Board, commonly referred to as “FASB.” FASB sets generally accepted accounting principles (GAAP) that the Company follows to ensure the consistent reporting of its consolidated financial condition, consolidated results of operations, and consolidated cash flows. References to GAAP issued by FASB in these footnotes are to FASB Accounting Standards Codification , sometimes referred to as the Codification or ASC. The following is a summary of significant policies: a. Cash and cash equivalents – Cash and cash equivalents include cash on hand, amounts due from banks, federal funds sold and repurchase agreements. At times throughout the year, balances can exceed FDIC insurance limits. Generally, federal funds sold and repurchase agreements are sold for one-day periods. The Bank did not have any repurchase agreements during 2016 or 2015 , or at December 31, 2016 and 2015 . All cash and cash equivalents have maturities when purchased of three months or less. b. Securities - Debt and equity securities classified as available for sale are reported at fair value, with unrealized gains and losses excluded from net income and reported, net of tax, as a separate component of comprehensive income and shareholders’ equity. Debt securities classified as held to maturity are carried at amortized cost. Gains and losses on disposition are reported using the specific identification method for the adjusted basis of the securities sold. Premiums and discounts are recognized in interest income using the interest method over the period to maturity. The Company classifies its securities as available for sale or held to maturity, and periodically reviews its investment portfolio on an individual security basis. Securities that are to be held for indefinite periods of time (including, but not limited to, those that management intends to use as part of its asset/liability management strategy, those which may be sold in response to changes in interest rates, changes in prepayments or any such other factors) are classified as securities available for sale. Securities which the Company has the ability and intent to hold to maturity are classified as held to maturity. Investments with fair values that are less than amortized cost are considered impaired. Impairment may result from either a decline in the financial condition of the issuing entity or, in the case of fixed interest rate investments, from rising interest rates. At each financial statement date, management assesses each investment to determine if impaired investments are temporarily impaired or if the impairment is other-than-temporary based upon the positive and negative evidence available. Evidence evaluated includes, but is not limited to, industry analyst reports, credit market conditions, and interest rate trends. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between the amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: (1) OTTI related to credit loss, which must be recognized in the income statement; and (2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. c. Loans - Interest income on loans is credited to income as earned and is calculated by using the simple interest method on the daily balance of the principal amounts outstanding. Loans are placed on non-accrual status when principal or interest is past due for 90 days and/or when management believes the collection of amounts due is doubtful. For loans placed on nonaccrual status, the accrued and unpaid interest receivable may be reversed at management's discretion based upon management's assessment of collectability, and interest is thereafter credited to principal to the extent necessary to eliminate doubt as to the collectability of the net carrying amount of the loan. Nonrefundable fees and related direct costs associated with the origination or purchase of loans are deferred and netted against outstanding loan balances. The net deferred fees and costs are generally amortized into interest income over the loan term using the interest method. Other credit-related fees, such as standby letter of credit fees, loan placement fees and annual credit card fees are recognized as noninterest income during the period the related service is performed. d. Allowance for Credit Losses and Reserve for Unfunded Loan Commitments - The allowance for credit losses is maintained to provide for losses that can reasonably be anticipated. The allowance is based on ongoing quarterly assessments of the probable losses inherent in the loan portfolio, and to a lesser extent, unfunded loan commitments. The reserve for unfunded loan commitments is a liability on the Company’s consolidated financial statements and is included in other liabilities. The liability is computed using a methodology similar to that used to determine the allowance for credit losses, modified to take into account the probability of a drawdown on the commitment. The allowance for credit losses is increased by provisions charged to operations during the current period and reduced by negative provisions and loan charge-offs, net of recoveries. Loans are charged against the allowance when management believes that the collection of the principal is unlikely. The allowance is an amount that management believes will be adequate to absorb losses inherent in existing loans, based on evaluations of the probability of collection. In evaluating the probability of collection, management is required to make estimates and assumptions that affect the reported amounts of loans, allowance for credit losses and the provision for credit losses charged to operations. Actual results could differ significantly from those estimates. These evaluations take into consideration such factors as the composition of the portfolio, overall portfolio quality, loan concentrations, specific problem loans, and current economic conditions that may affect the borrowers' ability to pay. The Company’s methodology for assessing the adequacy of the allowance for credit losses consists of several key elements, which include: - the formula allowance - specific allowances for problem graded loans identified as impaired - and the unallocated allowance The formula allowance is calculated by applying loss factors to outstanding loans. Loss factors are based on the Company’s historical loss experience and on the internal risk grade of those loans and, may be adjusted for significant factors, including economic factors that, in management's judgment, affect the collectability of the portfolio as of the evaluation date. Management determines the loss factors for problem graded loans (substandard, doubtful, and loss), special mention loans, and pass graded loans, based on a loss migration model. The migration analysis incorporates loan losses over the previous quarters as determined by management (time horizons adjusted as business cycles or environment changes) and loss factors are adjusted to recognize and quantify the loss exposure from changes in market conditions and trends in the Company’s loan portfolio. Those factors include 1) trends in delinquent and nonaccrual loans, 2) trends in loan volume and terms, 3) effects of changes in lending policies, 4) concentrations of credit, 5) competition, 6) national and local economic trends and conditions, 7) experience of lending staff, 8) loan review and Board of Directors oversight, 9) high balance loan concentrations, and 10) other business conditions. For purposes of this analysis, loans are grouped by internal risk classifications, which are “pass," “special mention,” “substandard,” “doubtful,” and “loss." Certain loans are homogeneous in nature and are therefore pooled by risk grade. These homogeneous loans include consumer installment and home equity loans. Specific allowances are established based on management’s periodic evaluation of loss exposure inherent in impaired loans. For impaired loans, specific allowances are determined based on the collateralized value of the underlying properties, the net present value of the anticipated cash flows, or the market value of the underlying assets. A loan is considered impaired when management determines that it is probable that the Company will be unable to collect all amounts due according to the original contractual terms of the loan agreement. Impairment is measured by the difference between the original recorded investment in the loan and the estimated present value of the total expected future cash flows, discounted at the loan’s effective rate, or the fair value of the collateral, less estimated selling costs, if the loan is collateral dependent. The unallocated portion of the allowance is based upon management’s evaluation of various conditions that are not directly measured in the determination of the formula and specific allowances. The conditions may include, but are not limited to, general economic and business conditions affecting the key lending areas of the Company, credit quality trends, collateral values, loan volumes and concentrations, and other business conditions. e. Premises and Equipment - Premises and equipment are carried at cost less accumulated depreciation. Depreciation expense is computed principally on the straight-line method over the estimated useful lives of the assets. Estimated useful lives are as follows: Buildings 31 years Furniture and equipment 3-7 Years f. Other Real Estate Owned - Real estate properties acquired through, or in lieu of, loan foreclosure are to be sold and are initially recorded at fair value of the property, less estimated costs to sell. The excess, if any, of the loan amount over the fair value is charged to the allowance for credit losses. Subsequent declines in the fair value of other real estate owned, along with related revenue and expenses from operations, are charged to noninterest expense. g. Intangible Assets and Goodwill - Intangible assets are comprised of core deposit intangibles, other specific identifiable intangibles, and goodwill acquired in branch acquisitions where the consideration given exceeded the fair value of the net assets acquired. Intangible assets and goodwill are reviewed at least annually for impairment. All core deposit intangibles related to previous mergers have been fully amortized. During 2016 and 2015 , the Company recognized no impairment losses on the core deposit intangible related to the deposits purchased in the Legacy merger consummated during February 2007. The Company estimates no aggregate amortization expense related to intangible assets for the next five years. Goodwill amounts resulting from the acquisitions of Taft National Bank during April 2004, and Legacy Bank during February 2007 are considered to have an indefinite life and are not amortized. At December 31, 2016 , goodwill related to Taft National Bank totaled $1.6 million , and goodwill related to Legacy Bank totaled $2.9 million . Impairment testing of goodwill is performed at the reporting level during December of each year for Taft, and during March of each year for Legacy. During 2016 and 2015 , the Company did not recognize impairment adjustments on the goodwill related to the Legacy or Taft Bank mergers (see Note 19 to the Company’s consolidated financial statements contained herein for details of the goodwill impairment.) h. Income Taxes - Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Company's assets and liabilities using the liability method, and are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. i. Net Income per Share - Basic income per common share is computed based on the weighted average number of common shares outstanding. Diluted income per share includes the effect of stock options and other potentially dilutive securities using the treasury stock method to the extent they have a dilutive impact. Net income per share has been retroactively adjusted for all stock dividends declared. j. Cash Flow Reporting - For purposes of reporting cash flows, cash and cash equivalents include cash on hand, noninterest-bearing amounts due from banks, federal funds sold and securities purchased under agreements to resell. Federal funds and securities purchased under agreements to resell are generally sold for one-day periods. Net cash flows are reported for interest-bearing deposits with other banks, loans to customers, and deposits held for customers. k. Transfers of Financial Assets - Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. l. Advertising Costs - The Company expenses marketing costs as they are incurred. Advertising expense was $126,000 , $127,000 , and $123,000 for the years ended December 31, 2016, 2015, and 2014 , respectively. m. Stock Based Compensation - The Company has a stock-based employee compensation plan, which is described more fully in Note 10. The Company accounts for all share-based payments to employees, including grants of employee stock options and restricted stock units and awards, to be recognized in the financial statements based on the grant date fair value of the award. The fair value is amortized over the requisite service period (generally the vesting period). Included in salaries and employee benefits for the years ended December 31, 2016, 2015, and 2014 are $30,000 , $26,000 , an $28,000 , respectively, of share-based compensation. The related tax benefit, recorded in the provision for income taxes, was not significant. All share data contained within the financial statements has been retroactively restated for stock based transactions (i.e. stock splits and stock dividends.) n. Federal Home Loan Bank stock and Federal Reserve Stock - As a member of the Federal Home Loan Bank (FHLB), the Company is required to maintain an investment in capital stock of the FHLB. In addition, as a member of the Federal Reserve Bank (FRB), the Company is required to maintain an investment in capital stock of the FRB. The investments in both the FHLB and the FRB are carried at cost, which approximates their fair value, in the accompanying consolidated balance sheets under other assets and are subject to certain redemption requirements by the FHLB and FRB. Stock redemptions are at the discretion of the FHLB and FRB. While technically these are considered equity securities, there is no market for the FHLB or FRB stock. Therefore, the shares are considered as restricted investment securities. Management periodically evaluates the stock for other-than-temporary impairment. Management’s determination of whether these investments are impaired is based on its assessment of the ultimate recoverability of cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of cost is influenced by criteria such as (1) the significance of any decline in net assets of the FHLB or FRB as compared to the capital stock amount of the FHLB or FRB and the length of time this situation has persisted, (2) commitments by the FHLB or FRB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB or FRB, (3) the impact of legislative and regulatory changes on institutions and, accordingly, the customer base of the FHLB or FRB, and (4) the liquidity position of the FHLB or FRB. o. Comprehensive Income - Comprehensive income is comprised of net income and other comprehensive income. Other comprehensive income includes items recorded directly to equity, such as unrealized gains and losses on securities available-for-sale and unrecognized costs of salary continuation defined benefit plans. Comprehensive income is presented in the Consolidated Statements of Other Comprehensive Income. p. Segment Reporting - The Company's operations are solely in the financial services industry and include providing to its customers traditional banking and other financial services. The Company operates primarily in the San Joaquin Valley region of California. Management makes operating decisions and assesses performance based on an ongoing review of the Company's consolidated financial results. Therefore, the Company has a single operating segment for financial reporting purposes. q. New Accounting Standards: In January 2014, FASB issued ASU 2014-04, Receivables - Troubled Debt Restructurings by Creditors. The amendments in this ASU clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this ASU are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. An entity can elect to adopt the amendments in this ASU using either a modified retrospective transition method or a prospective transition method. Early adoption is permitted. This ASU was effective for the Company on January 1, 2015 and did not have a material impact on the Company's consolidated financial statements. In January 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-01 Accounting for Investments in Qualified Affordable Housing Projects. This ASU provides "guidance on accounting for investments by a reporting entity in flow-through limited liability entities that manage or invest in affordable housing projects that qualify for the low-income housing tax credit." It allows the proportional amortization method to be used by a reporting entity if certain conditions are met. The ASU also defines when a qualified affordable housing project through a limited liability entity should be tested for impairment. If a qualified affordable housing project does not meet the conditions for using the proportional amortization method, the investment should be accounted for using an equity method investment or a cost method investment. This ASU was effective for the Company on January 1, 2015 and did not have a material impact on the Company's consolidated financial statements. The Company will continue to account for our low-income housing tax credit investments using the equity method subsequent to the adoption of ASU 2014-01 and does not expect any impact on the Company's consolidated financial statements. In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606), which creates Topic 606 and supersedes Topic 605, Revenue Recognition. In August 2015, FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606), which postponed the effective date of 2014-09. Multiple ASUs and interpretative guidance have been issued in connection with ASU 2014-09. The core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In general, the new guidance requires companies to use more judgment and make more estimates than under current guidance, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The standard is effective for public entities for interim and annual periods beginning after December 15, 2017; early adoption is not permitted. For financial reporting purposes, the standard allows for either full retrospective adoption, meaning the standard is applied to all of the periods presented, or modified retrospective adoption, meaning the standard is applied only to the most current period presented in the financial statements with the cumulative effect of initially applying the standard recognized at the date of initial application. The Company has begun their process to implement this new standard by reviewing all revenue sources to determine the sources that are in scope for this guidance. As a bank, key revenue sources, such as interest income have been identified as out of scope of this new guidance. The Company has not yet determined the financial statement impact this guidance will have. In January 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-01 Financial Instruments-Overall: Recognition and Measurements of Financial Assets and Financial Liabilities. This ASU requires equity investments to be measured at fair value, with changes in fair value recognized in net income. The amendment also simplifies the impairment assessment of equity investments for which fair value is not readily determinable by requiring an entity to perform a qualitative assessment to identify impairment. The ASU is effective for fiscal years beginning after December 15, 2017, and interim periods therein. The Company expects this ASU to impact its consolidated income and other comprehensive income disclosures for the fair value of its mutual fund investment and junior subordinated debenture. In February 2016, FASB issued ASU 2016-02, Leases (Topic 842). The FASB is issuing this Update to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. To meet that objective, the FASB is amending the FASB Accounting Standards Codification® and creating Topic 842, Leases. This Update, along with IFRS 16, Leases, are the results of the FASB’s and the International Accounting Standards Board’s (IASB’s) efforts to meet that objective and improve financial reporting. This ASU will be effective for public business entities for annual periods beginning after December 15, 2018 (i.e., calendar periods beginning on January 1, 2019), and interim periods therein. Although an estimate of the impact of the new leasing standard has not yet been determined, the Company expects a significant new lease asset and related lease liability on the balance sheet due to the number of leased branches and standalone ATM sites the Bank currently has that are accounted for under current operating lease guidance. In March 2016, FASB issued ASU 2016-9, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, as part of its simplification initiative. The provisions of the new standard changes several aspects of the accounting for share-based payment award transactions, including: (1) Accounting and Cash Flow Classification for Excess Tax Benefits, (2) Forfeitures, and (3) Tax Withholding Requirements and Cash Flow Classification. The Company will be required to adopt the ASU provisions January 1, 2017. Management does not expect the adoption of the ASU to have a material effect on the Company’s financial statements. In June 2016, FASB issued ASU 2016-13, Financial Instruments- Credit Losses (Topic 326). The FASB is issuing this Update to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The Update requires enhanced disclosures and judgments in estimating credit losses and also amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. This amendment is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company has established a project team for the implementation of this new standard. The team has started by working with a vendor to put a new Allowance for Loan Loss software in place and is collecting additional historical data to estimate the impact of this standard. An estimate of the impact of this standard has not yet been determined, however, the impact is expected to be significant. r. Reclassifications - Certain reclassifications have been made to prior year financial statements to conform to the classifications used in 2016 . None of the reclassifications had an impact on equity or net income. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities Following is a comparison of the amortized cost and approximate fair value of investment securities at December 31, 2016 and December 31, 2015 : (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Carrying Amount) December 31, 2016 Securities available for sale: U.S. Government agencies $ 22,992 $ 280 (69 ) $ 23,203 U.S. Government sponsored entities & agencies collateralized by mortgage obligations 30,867 107 (402 ) 30,572 Mutual Funds 4,000 — (284 ) 3,716 Total securities available for sale $ 57,859 $ 387 $ (755 ) $ 57,491 December 31, 2015 Securities available for sale: U.S. Government agencies $ 9,778 $ 453 $ (108 ) $ 10,123 U.S. Government sponsored entities & agencies collateralized by mortgage obligations 16,835 175 (52 ) 16,958 Mutual Funds 4,000 — (188 ) 3,812 Total securities available for sale $ 30,613 $ 628 $ (348 ) $ 30,893 There were no sales of securities and no gross realized losses on available-for-sale securities and no gross gains during the years ended December 31, 2016, 2015, and 2014 . There were no other-than-temporary impairment losses during the years ended December 31, 2016, 2015, and 2014 . The amortized cost and fair value of securities available for sale at December 31, 2016 , by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because issuers have the right to call or prepay obligations with or without call or prepayment penalties. Contractual maturities on collateralized mortgage obligations cannot be anticipated due to allowed paydowns. Mutual funds are included in the "due in one year or less" category below. December 31, 2016 Amortized Cost Fair Value (Carrying Amount) (In thousands) Due in one year or less $ 4,000 $ 3,716 Due after one year through five years — — Due after five years through ten years 847 861 Due after ten years 22,145 22,342 U.S. Government sponsored entities & agencies collateralized by mortgage obligations 30,867 30,572 $ 57,859 $ 57,491 At December 31, 2016 and 2015 , available-for-sale securities with an amortized cost of approximately $19,653,625 and $16,253,074 (fair value of $19,803,388 and $16,670,290 ) were pledged as collateral for FHLB borrowings and public funds balances, respectively. The Company had no held-to-maturity or trading securities at December 31, 2016 and 2015 . Management periodically evaluates each available-for-sale investment security in an unrealized loss position to determine if the impairment is temporary or other-than-temporary. The following summarizes temporarily impaired investment securities at December 31, 2016 and 2015 : Less than 12 Months 12 Months or More Total (In thousands) Fair Value (Carrying Amount) Unrealized Losses Fair Value (Carrying Amount) Unrealized Losses Fair Value (Carrying Amount) Unrealized Losses December 31, 2016 Securities available for sale: U.S. Government agencies $ 12,281 $ (69 ) $ — $ — $ 12,281 $ (69 ) U.S. Government sponsored entities & agencies collateralized by mortgage obligations 25,904 (402 ) — — 25,904 (402 ) Mutual Funds — — 3,716 (284 ) 3,716 (284 ) Total impaired securities $ 38,185 $ (471 ) $ 3,716 $ (284 ) $ 41,901 $ (755 ) December 31, 2015 Securities available for sale: U.S. Government agencies $ 79 $ (108 ) $ — $ — $ 79 $ (108 ) U.S. Government sponsored entities & agencies collateralized by mortgage obligations 9,913 (52 ) — — 9,913 (52 ) Mutual Funds — — 3,812 (188 ) 3,812 (188 ) Total impaired securities $ 9,992 $ (160 ) $ 3,812 $ (188 ) $ 13,804 $ (348 ) Temporarily impaired securities at December 31, 2016 , were comprised of four U.S. Government agency security, eleven U.S. Government sponsored entities & agencies collateralized by mortgage obligations and one mutual fund with and undefined maturity date. Temporarily impaired securities at December 31, 2015 , were comprised of one U.S. Government agency security, five U.S. Government sponsored entities & agencies collateralized by mortgage obligations and one mutual fund, with an undefined maturity date. The Company evaluates investment securities for other-than-temporary impairment (“OTTI”) at least quarterly, and more frequently when economic or market conditions warrant such an evaluation. The investment securities portfolio is evaluated for OTTI by segregating the portfolio into two general segments and applying the appropriate OTTI model. Investment securities of high credit quality are generally evaluated for OTTI under ASC Topic 320-10, “ Investments – Debt and Equity Instruments .” Certain purchased beneficial interests, including non-agency mortgage-backed securities, asset-backed securities, and collateralized debt obligations, are evaluated under ASC Topic 325-40, " Beneficial Interest in Securitized Financial Assets." In the first segment, the Company considers many factors in determining OTTI, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the Company has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. The assessment of whether an other-than-temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to the Company at the time of the evaluation. The second segment of the portfolio uses the OTTI guidance that is specific to purchased beneficial interests including private label mortgage-backed securities. Under this model, the Company compares the present value of the remaining cash flows as estimated at the preceding evaluation date to the current expected remaining cash flows. An OTTI is deemed to have occurred if there has been an adverse change in the remaining expected future cash flows. Other-than-temporary-impairment occurs when the Company intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis. If an entity intends to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis, the other-than-temporary-impairment shall be recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date. If an entity does not intend to sell the security and it is not more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis, the other-than-temporary-impairment shall be separated into the amount representing the credit loss and the amount related to all other factors. The amount of the total other-than-temporary-impairment related to the credit loss is recognized in earnings, and is determined based on the difference between the present value of cash flows expected to be collected and the current amortized cost of the security. The amount of the total other-than-temporary-impairment related to other factors shall be recognized in other comprehensive (loss) income, net of applicable taxes. The previous amortized cost basis less the other-than-temporary-impairment recognized in earnings shall become the new amortized cost basis of the investment. At December 31, 2016 , the decline in fair value of the impaired mutual fund and U.S. government agency security is attributable to changes in interest rates, and not credit quality. Because the Company does not have the intent to sell these impaired securities, and it is not more likely than not that it will be required to sell these securities before its anticipated recovery, the Company does not consider these securities to be other-than-temporarily impaired at December 31, 2016 . |
Loans
Loans | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Loans | Loans Loans are comprised of the following: In thousands) December 31, 2016 December 31, 2015 Commercial and Business loans $ 47,464 $ 54,503 Government Program Loans 1,541 1,323 Total Commercial and Industrial 49,005 55,826 Real estate – Mortgage: Commercial Real Estate 200,213 182,554 Residential Mortgages 87,388 68,811 Home Improvement and Home Equity loans 599 867 Total Real Estate Mortgage 288,200 252,232 Real Estate Construction and Development 130,687 130,596 Agricultural 56,918 52,137 Installment 44,949 24,527 Total Loans $ 569,759 $ 515,318 The Company's loans are predominantly in the San Joaquin Valley, and the greater Oakhurst/East Madera County area, as well as the Campbell area of Santa Clara County, although the Company does participate in loans with other financial institutions, primarily in the state of California. Commercial and industrial loans represent 8.6% of total loans at December 31, 2016 , and are generally made to support the ongoing operations of small-to-medium sized commercial businesses. Commercial and industrial loans have a high degree of industry diversification and provide, working capital, financing for the purchase of manufacturing plants and equipment, or funding for growth and general expansion of businesses. A substantial portion of commercial and industrial loans are secured by accounts receivable, inventory, leases or other collateral including real estate. The remainder are unsecured; however, extensions of credit are predicated upon the financial capacity of the borrower. Repayment of real estate mortgage loans generally comes from the cash flow of the borrower. Real estate mortgage loans, representing 50.6% of total loans at December 31, 2016 , are secured by trust deeds on primarily commercial property, but are also secured by trust deeds on single family residences. Repayment of real estate mortgage loans is generally from the cash flow of the borrower. • Commercial real estate mortgage loans comprise the largest segment of this loan category and are available on all types of income producing and commercial properties, including: office buildings, shopping centers; apartments and motels; owner occupied buildings; manufacturing facilities and more. Commercial real estate mortgage loans can also be used to refinance existing debt. Although real estate associated with the business is the primary collateral for commercial real estate mortgage loans, the underlying real estate is not the source of repayment. Commercial real estate loans are made under the premise that the loan will be repaid from the borrower's business operations, rental income associated with the real property, or personal assets. • Residential mortgage loans are provided to individuals to finance or refinance single-family residences. Residential mortgages are not a primary business line offered by the Company, and a majority are conventional mortgages that were purchased as a pool. Most residential mortgages originated by the Company are of a shorter term than conventional mortgages, with maturities ranging from three to fifteen years on average. • Home Improvement and Home Equity loans comprise a relatively small portion of total real estate mortgage loans, and are offered to borrowers for the purpose of home improvements, although the proceeds may be used for other purposes. Home equity loans are generally secured by junior trust deeds, but may be secured by 1 st trust deeds. Real estate construction and development loans, representing 22.9% of total loans at December 31, 2016 , consist of loans for residential and commercial construction projects, as well as land acquisition and development, or land held for future development. Loans in this category are secured by real estate including improved and unimproved land, as well as single-family residential, multi-family residential, and commercial properties in various stages of completion. All real estate loans have established equity requirements. Repayment on construction loans is generally from long-term mortgages with other lending institutions obtained at completion of the project. Agricultural loans represent 10.0% of total loans at December 31, 2016 , and are generally secured by land, equipment, inventory and receivables. Repayment is from the cash flow of the borrower. Installment loans represent 7.9% of total loans at December 31, 2016 and generally consist of loans to individuals for household, family, student loans, and other personal expenditures such as credit cards, automobiles or other consumer items. Included in installment loans are $38,514,000 in student loans made to medical and pharmacy school students. Repayment on student loans is deferred until 6 months after graduation. Accrued interest on loans that have not entered repayment status totaled $1,850,000 at December 31, 2016 . In the normal course of business, the Company is party to financial instruments with off-balance sheet risk to meet the financing needs of its customers. At December 31, 2016 and 2015 , these financial instruments include commitments to extend credit of $120,485,000 and $107,084,000 , respectively, and standby letters of credit of $1,201,000 and $3,295,000 , respectively. These instruments involve elements of credit risk in excess of the amount recognized on the balance sheet. The contract amounts of these instruments reflect the extent of the involvement the Company has in off-balance sheet financial instruments. The Company’s exposure to credit loss in the event of nonperformance by the counterparty to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amounts of those instruments. The Company uses the same credit policies as it does for on-balance sheet instruments. Commitments to extend credit are agreements to lend to a customer, as long as there is no violation of any condition established in the contract. Substantially all of these commitments are at floating interest rates based on the Prime rate. Commitments generally have fixed expiration dates. The Company evaluates each customer's creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary, is based on management's credit evaluation. Collateral held varies but includes accounts receivable, inventory, leases, property, plant and equipment, residential real estate and income-producing properties. Standby letters of credit are generally unsecured and are issued by the Company to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. Loans to directors, officers, principal shareholders and their affiliates are summarized below: December 31, (In thousands) 2016 2015 2014 Aggregate amount outstanding, beginning of year $ 3,754 $ 2,120 $ 2,916 New loans or advances during year 3,788 3,946 796 Repayments during year (1,704 ) (2,312 ) (1,592 ) Aggregate amount outstanding, end of year $ 5,838 $ 3,754 $ 2,120 Loan commitments, end of year $ 4,891 $ 7,431 $ 3,761 Past Due Loans The Company monitors delinquency and potential problem loans on an ongoing basis through weekly reports to the Loan Committee and monthly reports to the Board of Directors. The following is a summary of delinquent loans at December 31, 2016 (in thousands): December 31, 2016 Loans 30-60 Days Past Due Loans 61-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Current Loans Total Loans Accruing Loans 90 or More Days Past Due Commercial and Business Loans $ — $ 432 $ — $ 432 $ 48,009 $ 48,441 $ — Government Program Loans — — 290 290 1,251 1,541 — Total Commercial and Industrial — 432 290 722 49,260 49,982 — Commercial Real Estate Loans — — — — 199,810 199,810 — Residential Mortgages — — — — 87,388 87,388 — Home Improvement and Home Equity Loans — — — — 599 599 — Total Real Estate Mortgage — — — — 287,797 287,797 — Real Estate Construction and Development Loans 166 — 1,250 1,416 128,697 130,113 1,250 Agricultural Loans — — — — 56,918 56,918 — Consumer Loans — — 965 965 43,785 44,750 — Overdraft protection Lines — — — — 48 48 — Overdrafts — — — — 151 151 — Total Installment — — 965 965 43,984 44,949 — Total Loans $ 166 $ 432 $ 2,505 $ 3,103 $ 566,656 $ 569,759 $ 1,250 The following is a summary of delinquent loans at December 31, 2015 (in thousands): December 31, 2015 Loans 30-60 Days Past Due Loans 61-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Current Loans Total Loans Accruing Loans 90 or More Days Past Due Commercial and Business Loans $ — $ — $ — $ — $ 54,503 $ 54,503 $ — Government Program Loans 13 — — 13 1,310 1,323 — Total Commercial and Industrial 13 — — 13 55,813 55,826 — Commercial Real Estate Loans 721 — — 721 181,833 182,554 — Residential Mortgages 62 392 — 454 68,357 68,811 — Home Improvement and Home Equity Loans — 39 — 39 828 867 — Total Real Estate Mortgage 783 431 — 1,214 251,018 252,232 — Real Estate Construction and Development Loans — 706 — 706 129,890 130,596 — Agricultural Loans — — — — 52,137 52,137 — Consumer Loans — 650 — 650 23,657 24,307 — Overdraft protection Lines — — — — 61 61 — Overdrafts — — — — 159 159 — Total Installment — 650 — 650 23,877 24,527 — Total Loans $ 796 $ 1,787 $ — $ 2,583 $ 512,735 $ 515,318 $ — Nonaccrual Loans Commercial, construction and commercial real estate loans are placed on non-accrual status under the following circumstances: - When there is doubt regarding the full repayment of interest and principal. - When principal and/or interest on the loan has been in default for a period of 90 -days or more, unless the asset is both well secured and in the process of collection that will result in repayment in the near future. - When the loan is identified as having loss elements and/or is risk rated "8" Doubtful. Other circumstances which jeopardize the ultimate collectability of the loan including certain troubled debt restructurings, identified loan impairment, and certain loans to facilitate the sale of OREO. Loans meeting any of the preceding criteria are placed on non-accrual status and the accrual of interest for financial statement purposes is discontinued. Previously accrued but unpaid interest is reversed and charged against interest income. All other loans where principal or interest is due and unpaid for 90 days or more are placed on non-accrual and the accrual of interest for financial statement purposes is discontinued. Previously accrued but unpaid interest is reversed and charged against interest income. When a loan is placed on non-accrual status and subsequent payments of interest (and principal) are received, the interest received may be accounted for in two separate ways. Cost recovery method : If the loan is in doubt as to full collection, the interest received in subsequent payments is diverted from interest income to a valuation reserve and treated as a reduction of principal for financial reporting purposes. Cash basis : This method is only used if the recorded investment or total contractual amount is expected to be fully collectible, under which circumstances the subsequent payments of interest is credited to interest income as received. Loans on non-accrual status are usually not returned to accruing status unless and until all delinquent principal and/or interest has been brought current, there is no identified element of loss, and current and continued satisfactory performance is expected (loss of the contractual amount not the carrying amount of the loan). Repayment ability is generally demonstrated through the timely receipt of at least six monthly payments on a loan with monthly amortization. Nonaccrual loans totaled $7,264,000 and $8,193,000 at December 31, 2016 and 2015 , respectively. There were no remaining undisbursed commitments to extend credit on nonaccrual loans at December 31, 2016 and 2015 . The following is a summary of nonaccrual loan balances at December 31, 2016 and 2015 (in thousands). December 31, 2016 December 31, 2015 Commercial and Business Loans $ 275 $ — Government Program Loans 290 328 Total Commercial and Industrial 565 328 Commercial Real Estate Loans 1,126 1,243 Residential Mortgages — 392 Home Improvement and Home Equity Loans — — Total Real Estate Mortgage 1,126 1,635 Real Estate Construction and Development Loans 4,608 5,580 Agricultural Loans — — Consumer Loans 965 650 Total Installment 965 650 Total Loans $ 7,264 $ 8,193 Impaired Loans A loan is considered impaired when based on current information and events, it is probable that the Company will be unable to collect all amounts due, including principal and interest, according to the contractual terms of the loan agreement. The Company applies its normal loan review procedures in making judgments regarding probable losses and loan impairment. The Company evaluates for impairment those loans on nonaccrual status, graded doubtful, graded substandard or those that are troubled debt restructures. The primary basis for inclusion in impaired status under generally accepted accounting pronouncements is that it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. A loan is not considered impaired if there is merely an insignificant delay or shortfall in the amounts of payments and the Company expects to collect all amounts due, including interest accrued, at the contractual interest rate for the period of the delay. Review for impairment does not include large groups of smaller balance homogeneous loans that are collectively evaluated to estimate the allowance for loan losses. The Company’s present allowance for loan losses methodology, including migration analysis, captures required reserves for these loans in the formula allowance. For loans determined to be impaired, the Company evaluates impairment based upon either the fair value of underlying collateral, discounted cash flows of expected payments, or observable market price. - For loans secured by collateral including real estate and equipment, the fair value of the collateral less selling costs will determine the carrying value of the loan. The difference between the recorded investment in the loan and the fair value, less selling costs, determines the amount of impairment. The Company uses the measurement method based on fair value of collateral when the loan is collateral dependent and foreclosure is probable. For loans that are not considered collateral dependent, a discounted cash flow methodology is used. - The discounted cash flow method of measuring the impairment of a loan is used for impaired loans that are not considered to be collateral dependent. Under this method, the Company assesses both the amount and timing of cash flows expected from impaired loans. The estimated cash flows are discounted using the loan's effective interest rate. The difference between the amount of the loan on the Bank's books and the discounted cash flow amounts determines the amount of impairment to be provided. This method is used for most of the Company’s troubled debt restructurings or other impaired loans where some payment stream is being collected. - The observable market price method of measuring the impairment of a loan is only used by the Company when the sale of loans or a loan is in process. The method for recognizing interest income on impaired loans is dependent on whether the loan is on nonaccrual status or is a troubled debt restructure. For income recognition, the existing nonaccrual and troubled debt restructuring policies are applied to impaired loans. Generally, except for certain troubled debt restructurings which are performing under the restructure agreement, the Company does not recognize interest income received on impaired loans, but reduces the carrying amount of the loan for financial reporting purposes. Loans other than certain homogeneous loan portfolios are reviewed on a quarterly basis for impairment. Impaired loans are written down to estimated realizable values by the establishment of specific reserves for loan utilizing the discounted cash flow method, or charge-offs for collateral-based impaired loans, or those using observable market pricing. The following is a summary of impaired loans at December 31, 2016 (in thousands). December 31, 2016 Unpaid Contractual Principal Balance Recorded Investment With No Allowance (1) Recorded Investment With Allowance (1) Total Recorded Investment Related Allowance Average Recorded Investment (2) Interest Recognized (2) Commercial and Business Loans $ 4,635 $ 495 $ 4,158 $ 4,653 $ 757 $ 5,050 $ 302 Government Program Loans 356 356 — 356 — 372 20 Total Commercial and Industrial 4,991 851 4,158 5,009 757 5,422 322 Commercial Real Estate Loans 1,454 — 1,456 1,456 450 1,503 89 Residential Mortgages 2,467 526 1,949 2,475 153 2,874 138 Home Improvement and Home Equity Loans — — — — — — — Total Real Estate Mortgage 3,921 526 3,405 3,931 603 4,377 227 Real Estate Construction and Development Loans 6,267 6,274 — 6,274 — 8,794 361 Agricultural Loans — — — — — 5 8 Consumer Loans 965 965 — 965 — 968 35 Total Installment 965 965 — 965 — 968 35 Total Impaired Loans $ 16,144 $ 8,616 $ 7,563 $ 16,179 $ 1,360 $ 19,566 $ 953 (1) The recorded investment in loans includes accrued interest receivable of $ 35,000 . (2) Information is based on the twelve month period ended December 31, 2016 . The following is a summary of impaired loans at December 31, 2015 (in thousands). December 31, 2015 Unpaid Contractual Principal Balance Recorded Recorded Total Related Allowance Average Interest Recognized (2) Commercial and Business Loans $ 4,855 $ 541 $ 4,333 $ 4,874 $ 530 $ 2,537 $ 302 Government Program Loans 327 327 — 327 — 358 29 Total Commercial and Industrial 5,182 868 4,333 5,201 530 2,895 331 Commercial Real Estate Loans 1,243 — 1,243 1,243 477 1,618 74 Residential Mortgages 4,032 1,051 2,999 4,050 158 4,092 185 Home Improvement and Home Equity Loans — — — — — 11 — Total Real Estate Mortgage 5,275 1,051 4,242 5,293 635 5,721 259 Real Estate Construction and Development Loans 12,489 5,340 7,179 12,519 1,282 7,781 820 Agricultural Loans 16 16 — 16 — 22 9 Consumer Loans 650 — 650 650 650 1,043 21 Total Installment 650 — 650 650 650 1,043 21 Total Impaired Loans $ 23,612 $ 7,275 $ 16,404 $ 23,679 $ 3,097 $ 17,462 $ 1,440 (1) The recorded investment in loans includes accrued interest receivable of $ 67,000 . (2) Information is based on the twelve month period ended December 31, 2015 . The following is a summary of impaired loans at December 31, 2014 (in thousands). December 31, 2014 Unpaid Contractual Principal Balance Recorded Recorded Total Related Allowance Average Interest Recognized (2) Commercial and Business Loans $ 996 $ 770 $ 230 $ 1,000 $ 64 $ 847 $ 76 Government Program Loans 421 421 — 421 — 250 28 Total Commercial and Industrial 1,417 1,191 230 1,421 64 1,097 104 Commercial Real Estate Loans 3,145 1,794 1,351 3,145 478 5,765 244 Residential Mortgages 4,315 1,474 2,852 4,326 170 4,564 188 Home Improvement and Home Equity Loans 42 42 — 42 — 11 3 Total Real Estate Mortgage 7,502 3,310 4,203 7,513 648 10,340 435 Real Estate Construction and Development Loans 6,367 6,371 — 6,371 — 3,362 209 Agricultural Loans 32 32 — 32 — 37 9 Consumer Loans 695 655 45 700 3 209 37 Overdraft protection Lines — — — — — — — Overdrafts — — — — — — — Total Installment 695 655 45 700 3 209 37 Total Impaired Loans $ 16,013 $ 11,559 $ 4,478 $ 16,037 $ 715 $ 15,045 $ 794 (1) The recorded investment in loans includes accrued interest receivable of $24,000 . (2) Information is based on the twelve month period ended December 31, 2014 . In most cases, the Company uses the cash basis method of income recognition for impaired loans. In the case of certain troubled debt restructuring for which the loan is performing under the current contractual terms for a reasonable period of time, income is recognized under the accrual method. Troubled Debt Restructurings Under the circumstances, when the Company grants a concession to a borrower as part of a loan restructuring, the restructuring is accounted for as a troubled debt restructuring (TDR). TDRs are reported as a component of impaired loans. A TDR is a type of restructuring in which the Company, for economic or legal reasons related to the borrower's financial difficulties, grants a concession (either imposed by court order, law, or agreement between the borrower and the Bank) to the borrower that it would not otherwise consider. Although the restructuring may take different forms, the Company's objective is to maximize recovery of its investment by granting relief to the borrower. A TDR may include, but is not limited to, one or more of the following: - A transfer from the borrower to the Company of receivables from third parties, real estate, other assets, or an equity interest in the borrower is granted to fully or partially satisfy the loan. - A modification of terms of a debt such as one or a combination of: ◦ The reduction (absolute or contingent) of the stated interest rate. ◦ The extension of the maturity date or dates at a stated interest rate lower than the current market rate for new debt with similar risk. ◦ The reduction (absolute or contingent) of the face amount or maturity amount of debt as stated in the instrument or agreement. ◦ The reduction (absolute or contingent) of accrued interest. For a restructured loan to return to accrual status there needs to be, among other factors, at least 6 months successful payment history. In addition, the Company performs a financial analysis of the credit to determine whether the borrower has the ability to continue to meet payments over the remaining life of the loan. This includes, but is not limited to, a review of financial statements and cash flow analysis of the borrower. Only after determination that the borrower has the ability to perform under the terms of the loans, will the restructured credit be considered for accrual status. Although the Company does not have a policy which specifically addresses when a loan may be removed from TDR classification, as a matter of practice, loans classified as TDRs generally remain classified as such until the loan either reaches maturity or its outstanding balance is paid off. The following tables illustrate TDR activity for the periods indicated (dollars in thousands): Year ended December 31, 2016 Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Number of Contracts in Default Recorded Investment on Defaulted TDRs Troubled Debt Restructurings Commercial and Business Loans 5 $ 1,295 $ 1,024 1 $ 290 Government Program Loans 1 100 100 — — Commercial Real Estate Term Loans — — — — — Single Family Residential Loans — — — — — Home Improvement and Home Equity Loans — — — — — Real Estate Construction and Development Loans 1 1,246 1,246 — — Agricultural Loans — — — — — Consumer Loans — — — — — Overdraft protection Lines — — — — — Total Loans 7 $ 2,641 $ 2,370 1 $ 290 Year ended December 31, 2015 Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Number of Contracts in Default Recorded Investment on Defaulted TDRs Troubled Debt Restructurings Commercial and Business Loans 1 $ 81 $ 76 — $ — Government Program Loans — — — — — Commercial Real Estate Term Loans — — — — — Single Family Residential Loans 1 258 248 — — Home Improvement and Home Equity Loans — — — — — Real Estate Construction and Development Loans 1 6,446 6,446 — — Agricultural Loans — — — — — Consumer Loans — — — — — Overdraft protection Lines — — — — — Total Loans 3 $ 6,785 $ 6,770 — $ — December 31, 2014 Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Number of Contracts in Default Recorded Investment on Defaulted TDRs Troubled Debt Restructurings Commercial and Business Loans 5 $ 456 $ 437 1 $ — Government Program Loans 1 544 539 2 421 Commercial Real Estate Term Loans 2 1,948 1,362 — — Single Family Residential Loans — — — 3 656 Home Improvement and Home Equity Loans — — — — — Real Estate Construction and Development Loans 2 5,665 5,548 2 394 Agricultural Loans — — — — — Consumer Loans 1 630 650 — — Overdraft protection Lines — — — — — Total Loans 11 $ 9,243 $ 8,536 8 $ 1,471 The following tables summarize TDR activity by loan category for the years ended December 31, 2016, 2015, and 2014 (in thousands). Twelve Months Ended December 31, 2016 Commercial and Industrial Commercial Real Estate Residential Mortgages Home Equity Real Estate Construction and Development Agricultural Installment & Other Total Beginning balance $ 898 $ 1,243 $ 3,533 $ — $ 12,168 $ 16 $ 650 $ 18,508 Defaults (290 ) — — — — — — (290 ) Additions 1,124 1,246 — — — — — 2,370 Principal advances (reductions) (376 ) (1,035 ) (1,165 ) — (5,901 ) (16 ) 315 (8,178 ) Ending balance $ 1,356 $ 1,454 $ 2,368 $ — $ 6,267 $ — $ 965 $ 12,410 Allowance for loan loss $ 104 $ 453 $ 157 $ — $ — $ — $ — $ 714 Twelve Months Ended December 31, 2015 Commercial and Industrial Commercial Real Estate Residential Mortgages Home Equity Real Estate Construction and Development Agricultural Installment & Other Total Beginning balance $ 1,306 $ 2,713 $ 4,225 $ — $ 6,029 $ 32 $ 695 $ 15,000 Defaults — — — — — — — — Additions 76 — 248 — 6,446 — — 6,770 Principal reductions (484 ) (1,470 ) (940 ) — (307 ) (16 ) (45 ) (3,262 ) Ending balance $ 898 $ 1,243 $ 3,533 $ — $ 12,168 $ 16 $ 650 $ 18,508 Allowance for loan loss $ 32 $ 477 $ 149 $ — $ 384 $ — $ 650 $ 1,692 December 31, 2014 Commercial and Industrial Commercial Real Estate Residential Mortgages Home Equity Real Estate Construction and Development Agricultural Installment & Other Total Beginning balance $ 675 $ 1,468 $ 5,273 $ — 1,551 $ 44 $ 48 $ 9,059 Defaults (421 ) — (656 ) — (394 ) — — (1,471 ) Additions 1,000 1,948 — — 5,665 — 630 9,243 Principal reductions 52 (703 ) (392 ) — (793 ) (12 ) 17 (1,831 ) Ending balance $ 1,306 $ 2,713 $ 4,225 $ — $ 6,029 $ 32 $ 695 $ 15,000 Allowance for loan loss $ 64 $ 478 $ 170 $ — $ — $ — $ 3 $ 715 The Company makes various types of concessions when structuring TDRs including rate reductions, payment extensions, and forbearance. At December 31, 2016 , the Company had 28 restructured loans totaling $12,410,000 , as compared to 29 restructured loans totaling $18,508,000 at December 31, 2015 , and 33 restructured loans totaling $15,000,000 at December 31, 2014 . The Company had no unfunded commitments standing for TDRs at December 31, 2016 , $454,000 at December 31, 2015 , and none at December 31, 2014 . Credit Quality Indicators As part of its credit monitoring program, the Company utilizes a risk rating system which quantifies the risk the Company estimates it has assumed during the life of a loan. The system rates the strength of the borrower and the facility or transaction, and is designed to provide a program for risk management and early detection of problems. For each new credit approval, credit extension, renewal, or modification of existing credit facilities, the Company assigns risk ratings utilizing the rating scale identified in this policy. In addition, on an on-going basis, loans and credit facilities are reviewed for internal and external influences impacting the credit facility that would warrant a change in the risk rating. Each loan credit facility is to be given a risk rating that takes into account factors that materially affect credit quality. When assigning risk ratings, the Company evaluates two risk rating approaches, a facility rating and a borrower rating as follows. Facility Rating: The facility rating is determined by the analysis of positive and negative factors that may indicate that the quality of a particular loan or credit arrangement requires that it be rated differently from the risk rating assigned to the borrower. The Company assesses the risk impact of these factors: Collateral - The rating may be affected by the type and quality of the collateral, the degree of coverage, the economic life of the collateral, liquidation value and the Company's ability to dispose of the collateral. Guarantees - The value of third party support arrangements varies widely. Unconditional guaranties from persons with demonstrable ability to perform are more substantial than that of closely related persons to the borrower who offer only modest support. Unusual Terms - Credit may be extended on terms that subject the Company to a higher level of risk than indicated in the rating of the borrower. Borrower Rating: The borrower rating is a measure of loss possibility based on the historical, current and anticipated financial characteristics of the borrower in the current risk environment. To determine the rating, the Company considers at least the following factors: - Quality of management - Liquidity - Leverage/capitalization - Profit margins/earnings trend - Adequacy of financial records - Alternative funding sources - Geographic risk - Industry risk - Cash flow risk - Accounting practices - Asset protection - Extraordinary risks The Company assigns risk ratings to loans other than consumer loans and other homogeneous loan pools based on the following scale. The risk ratings are used when determining borrower ratings as well as facility ratings. When the borrower rating and the facility ratings differ, the lowest rating applied is: - Grades 1 and 2 – These grades include loans which are given to high quality borrowers with high credit quality and sound financial strength. Key financial ratios are generally above industry averages and the borrower’s strong earnings history or net worth. These may be secured by deposit accounts or high-grade investment securities. - Grade 3 – This grade includes loans to borrowers with solid credit quality with minimal risk. The borrower’s balance sheet and financial ratios are generally in line with industry averages, and the borrower has historically demonstrated the ability to manage economic adversity. Real estate and asset-based loans assigned this risk rating must have characteristics, which place them well above the minimum underwriting requirements for those departments. Asset-based borrowers assigned this rating must exhibit extremely favorable leverage and cash flow characteristics, and consistently demonstrate a high level of unused borrowing capacity. - Grades 4 and 5 – These include “pass” grade loans to borrowers of acceptable credit quality and risk. The borrower’s balance sheet and financial ratios may be below industry averages, but above the lowest industry quartile. Leverage is above and liquidity is below industry averages. Inadequacies evident in financial performance and/or management sufficiency are offset by readily available features of support, such as adequate collateral, or good guarantors having the liquid assets and/or cash flow capacity to repay the debt. The borrower may have recognized a loss over three or four years, however recent earnings trends, while perhaps somewhat cyclical, are improving and cash flows are adequate to cover debt service and fixed obligations. Real estate and asset-borrowers fully comply with all underwriting standards and are performing according to projections would be assigned this rating. These also include grade 5 loans which are “leveraged” or on management’s “watch list.” While still considered pass loans (loans given a grade 5), the borrower’s financial condition, cash flow or operations evidence more than average risk and short term weaknesses, these loans warrant a higher than average level of monitoring, supervision and attention from the Company, but do not reflect credit weakness trends that weaken or inadequately protect the Company’s credit position. Loans with a grade rating of 5 are not normally acceptable as new credits unless they are adequately secured or carry substantial endorser/guarantors. - Grade 6 – This grade includes “special mention” loans which are loans that are currently protected but are potentially weak. This generally is an interim grade classification and should usually be upgraded to an Acceptable rating or downgraded to Substandard within a reasonable time period. Weaknesses in special mention loans may, if not checked or corrected, weaken the asset or inadequately protect the Company’s credit position at some future date. Special mention loans are often loans with weaknesses inherent from the loan origination, loan servicing, and perhaps some technical deficiencies. The main theme in special mention credits is the d |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment The components of premises and equipment are as follows: (In thousands) December 31, 2016 December 31, 2015 Land $ 968 $ 968 Buildings and improvements 14,841 14,791 Furniture and equipment 9,501 8,496 25,310 24,255 Less accumulated depreciation and amortization (14,865 ) (13,455 ) Total premises and equipment $ 10,445 $ 10,800 Total depreciation expense on Company premises and equipment totaled $1,428,000 , $1,462,000 , and $1,390,000 for the years ended December 31, 2016, 2015, and 2014 , respectively, and is included in occupancy expense in the accompanying consolidated statements of operations. |
Investment in Limited Partnersh
Investment in Limited Partnership | 12 Months Ended |
Dec. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Limited Partnership | Investment in Limited Partnership The Bank owns limited interests in private limited partnerships that acquire affordable housing properties in California that generate Low Income Housing Tax Credits under Section 42 of the Internal Revenue Code of 1986, as amended. The Bank's limited partnership investment is accounted for under the equity method. The Bank's noninterest expense associated with the utilization and expiration of these tax credits for the years ended December 31, 2016, 2015, and 2014 was $158,000 , $73,000 , and $39,000 respectively. These limited partnership investments are expected to generate tax credits of approximately $1.8 million over the life of the investment. The tax credits expired during 2015 . No tax credits were available for income tax purposes for the years ended December 31, 2016, 2015, and 2014 . The Bank owns a 9.14% interest in a limited partnership which provides private capital for small to mid-sized businesses used to finance later stage growth, strategic acquisitions, ownership transitions, and recapitalizations, or mezzanine capital. At December 31, 2016 , the total investment in limited partnerships was $757,000 . |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2016 | |
Deposits [Abstract] | |
Deposits | Deposits Deposits include the following: (In thousands) December 31, 2016 December 31, 2015 Noninterest-bearing deposits $ 262,697 $ 262,168 Interest-bearing deposits: NOW and money market accounts 235,873 226,886 Savings accounts 75,068 63,592 Time deposits: Under $250,000 87,419 58,122 $250,000 and over 15,572 11,037 Total interest-bearing deposits 413,932 359,637 Total deposits $ 676,629 $ 621,805 At December 31, 2016 , the scheduled maturities of all certificates of deposit and other time deposits are as follows: (In thousands) December 31, 2016 One year or less $ 91,320 More than one year, but less than or equal to two years 9,214 More than two years, but less than or equal to three years 1,681 More than three years, but less than or equal to four years 348 More than four years, but less than or equal to five years 428 More than five years — $ 102,991 The Company may utilize brokered deposits as an additional source of funding. At December 31, 2016 and 2015 , the Company held brokered time deposits totaling $28,132,000 and $8,546,000 , respectively. All brokered time deposits are include in time deposits of less than $250,000 . Included in brokered time deposits at December 31, 2016 are balances totaling $7,627,000 maturing in three months or less and $20,505,000 maturing in 3 months to a year. Deposit balances representing overdrafts reclassified as loan balances totaled $283,000 and $158,000 as of December 31, 2016 and 2015 , respectively. Deposits of directors, officers and other related parties to the Bank totaled $9,299,000 and $13,746,000 at December 31, 2016 and 2015 , respectively. The rates paid on these deposits were similar to those customarily paid to the Bank’s customers in the normal course of business. |
Short-term Borrowings_Other Bor
Short-term Borrowings/Other Borrowings | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Short-term Borrowings/Other Borrowings | Short-term Borrowings/Other Borrowings At December 31, 2016 , the Company had collateralized lines of credit with the Federal Reserve Bank of San Francisco totaling $323,162,000 , as well as Federal Home Loan Bank (“FHLB”) lines of credit totaling $2,037,000 . At December 31, 2016 , the Company had an uncollateralized line of credit with Pacific Coast Bankers Bank ("PCBB") totaling $10,000,000 and a Fed Funds line of $20,000,000 with Zions First National Bank. At December 31, 2016 , and for the year then ended, the Company had no outstanding borrowing balances. All lines of credit are on an “as available” basis and can be revoked by the grantor at any time. These lines of credit have interest rates that are generally tied to the Federal Funds rate or are indexed to short-term U.S. Treasury rates or LIBOR. FHLB advances are collateralized by the Company’s stock in the FHLB, investment securities, and certain qualifying mortgage loans. As of December 31, 2016 , $2,152,000 in investment securities at FHLB were pledged as collateral for FHLB advances. Additionally, $471,737,000 in real estate-secured loans were pledged at December 31, 2016 , as collateral for used and unused borrowing lines with the Federal Reserve Bank totaling $323,162,000 . The Company had collateralized lines of credit with the Federal Reserve Bank of San Francisco totaling $302,456,000 , as well as Federal Home Loan Bank (“FHLB”) lines of credit totaling $2,854,000 at December 31, 2015 . At December 31, 2015 , the Company had an uncollateralized line of credit with Pacific Coast Bankers Bank ("PCBB") totaling $10,000,000 . These lines of credit generally have interest rates tied to the Federal Funds rate or are indexed to short-term U.S. Treasury rates or LIBOR. FHLB advances are collateralized by the Company’s stock in the FHLB, investment securities, and certain qualifying mortgage loans. As of December 31, 2015 , $3,023,000 in investment securities at FHLB were pledged as collateral for FHLB advances. Additionally, $444,596,000 in secured and unsecured loans were pledged at December 31, 2015 , as collateral for used and unused borrowing lines with the Federal Reserve Bank totaling $302,456,000 . All lines of credit are on an “as available” basis and can be revoked by the grantor at any time. At December 31, 2015 , and for the year then ended, the Company had no outstanding borrowing balances. |
Junior Subordinated Debt_Trust
Junior Subordinated Debt/Trust Preferred Securities | 12 Months Ended |
Dec. 31, 2016 | |
Junior Subordinated Debt/Trust Preferred Securities [Abstract] | |
Junior Subordinated Debt/Trust Preferred Securities | Junior Subordinated Debt/Trust Preferred Securities During July 2007, the Company formed USB Capital Trust II, a wholly-owned special purpose entity, for the purpose of issuing Trust Preferred Securities. USB Capital Trust II is a Variable Interest Entity (VIE) and a deconsolidated entity pursuant to ASC 810. On July 23, 2007, USB Capital Trust II issued $15 million in Trust Preferred securities. The securities have a thirty -year maturity and bear a floating rate of interest (repricing quarterly) of 1.29% over the three-month LIBOR rate (initial coupon rate of 6.65% ). Interest will be paid quarterly. Concurrent with the issuance of the Trust Preferred securities, USB Capital Trust II used the proceeds of the Trust Preferred securities offering to purchase a like amount of junior subordinated debentures of the Company. The Company will pay interest on the junior subordinated debentures to USB Capital Trust II, which represents the sole source of dividend distributions to the holders of the Trust Preferred securities. The Company may redeem the junior subordinated debentures at anytime at par. The Company elected the fair value measurement option for all the Company’s new junior subordinated debentures issued under USB Capital Trust II. Effective September 30, 2009 and beginning with the quarterly interest payment due October 1, 2009, the Company elected to defer interest payments on the Company’s $15.0 million of junior subordinated debentures relating to its trust preferred securities. The terms of the debentures and trust indentures allow for the Company to defer interest payments for up to 20 consecutive quarters without default or penalty. During the period that the interest deferrals were elected, the Company continued to record interest expense associated with the debentures. As of June 30, 2014, the Company ended the extension period, paid all accrued and unpaid interest, and is currently making quarterly interest payments. At December 31, 2016 and 2015 , the Company had $64,000 and $50,000 , respectively, in accrued and unpaid interest on the junior subordinated debt. During August 2015, the Bank purchased $3.0 million of the Company's junior subordinated debentures related to the Company's trust preferred securities at a fair value discount of 40% . Subsequently, in September 2015, the Company purchased those shares from the Bank and canceled $3.0 million in par value of the junior subordinated debentures, realizing a $78,000 gain on redemption. The contractual principal balance of the Company's debentures relating to its trust preferred securities is $12.0 million as of December 31, 2016 . At December 31, 2016 , as with previous periods, the Company performed a fair value measurement analysis on its junior subordinated debt using a discounted cash flow valuation model approach to determine the present value of those cash flows. The cash flow model utilizes the forward 3-month LIBOR curve to estimate future quarterly interest payments due over the life of the debt instrument. These cash flows were discounted at a rate which incorporates a current market rate for similar-term debt instruments, adjusted for additional credit and liquidity risks associated with the junior subordinated debt. We believe the 6.46% discount rate used represents what a market participant would consider under the circumstances based on current market assumptions. At December 31, 2016 , the total cumulative gain recorded on the debt is $3,696,000 . The fair value calculation performed resulted in realized losses of $518,000 , $73,000 , and $102,000 for the years ended December 31, 2016, 2015, and 2014 , respectively. Fair value gains and losses are reflected as a component of noninterest income. |
Taxes on Income
Taxes on Income | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Taxes on Income | Taxes on Income The tax effects of significant items comprising the Company’s net deferred tax assets (liabilities) are as follows: December 31, (In thousands) 2016 2015 Deferred tax assets: Credit losses not currently deductible $ 4,151 $ 4,489 Deferred compensation 1,782 1,891 Net operating losses — 459 Depreciation 51 338 Accrued reserves 200 73 Write-down on other real estate owned 534 534 Unrealized gain on AFS & retirement obligation 415 147 Interest on nonaccrual loans 36 36 Capitalized OREO expenses — 826 Other 1,897 2,196 Total deferred tax assets 9,066 10,989 Deferred tax liabilities: State Tax (1,087 ) (1,281 ) FHLB dividend (65 ) (65 ) Loss on limited partnership investment (1,222 ) (1,286 ) Deferred gain ASC 825 – fair value option (1,657 ) (1,890 ) Fair value adjustments for purchase accounting (139 ) (139 ) Deferred loan costs (1,318 ) (868 ) Prepaid expenses (280 ) (232 ) Total deferred tax liabilities (5,768 ) (5,761 ) Net deferred tax assets $ 3,298 $ 5,228 The Company periodically evaluates its deferred tax assets to determine whether a valuation allowance is required based upon a determination that some or all of the deferred assets may not be ultimately realized. The Company did not record a valuation allowance at December 31, 2016 or December 31, 2015 . Income tax expense for the years ended December 31, consist of the following: (In thousands) 2016 Federal State Total Current $ 2,642 $ 28 $ 2,670 Deferred 941 1,258 2,199 $ 3,583 $ 1,286 $ 4,869 2015 Current $ 2,847 $ 10 $ 2,857 Deferred 465 1,175 1,640 $ 3,312 $ 1,185 $ 4,497 2014 Current $ 1,129 $ (1,753 ) $ (624 ) Deferred 1,994 2,822 4,816 $ 3,123 $ 1,069 $ 4,192 A reconciliation of the statutory federal income tax rate to the effective income tax rate is as follows: Year Ended December 31, 2016 2015 2014 Statutory federal income tax rate 34.0 % 34.0 % 34.0 % State franchise tax, net of federal income tax benefit 6.9 6.9 6.8 Other (1.2 ) (1.1 ) (0.5 ) 39.7 % 39.8 % 40.3 % At December 31, 2016 , the Company has no remaining federal and state net operating loss carry-forwards. The Company periodically reviews its tax positions under the accounting standards related to uncertainty in income taxes, which defines the criteria that an individual tax position would have to meet for some or all of the income tax benefit to be recognized in a taxable entity’s financial statements. Under the guidelines, an entity should recognize the financial statement benefit of a tax position if it determines that it is more likely than not that the position will be sustained on examination. The term, “more likely than not”, means a likelihood of more than 50 percent. In assessing whether the more-likely-than-not criterion is met, the entity should assume that the tax position will be reviewed by the applicable taxing authority and all available information is known to the taxing authority. The Company and its subsidiary file income tax returns in the U.S federal jurisdiction, and several states within the U.S. There are no filings in foreign jurisdictions. During 2014, the Company began the process to amend its state tax returns for the years 2009 through 2012 to file a combined report on a unitary basis with the Company and USB Investment Trust . The amended return for 2009 was filed during 2014, the 2010 return was filed during 2015, and the amended returns for 2011 and 2012 were filed in 2016. The Company is no longer subject to examination for years before 2009. During the third quarter of 2016, the IRS notified the Company it would be conducting an examination of the Company's 2014 federal return. As of December 31, 2016 , the Company is unaware of any change in tax positions as a result of the IRS examination. The Company's policy is to recognize interest and penalties related to taxes in income tax expense. Interest and penalties recognized during the years ended December 31, 2016 and 2015 were insignificant. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation | Stock Based Compensation Options and restricted stock units and awards have been granted to officers and key employees at an exercise price equal to estimated fair value at the date of grant as determined by the Board of Directors. All options, units, and awards granted are service awards, and as such are based solely upon fulfilling a requisite service period (the vesting period). On December 31, 2016, the Company had two stock based compensation plans. In May 2005, the Company adopted the United Security Bancshares 2005 Stock Option Plan (2005 Plan) for which 36,772 shares remain reserved for issuance for options already granted to employees and directors under incentive and nonstatutory agreements. The 2005 plan expired in May 2015. While outstanding arrangements to issue shares under this plan, including options, continue in force until their expiration, no new options will be granted under this plan. In May 2015, the Company adopted the United Security Bancshares 2015 Equity Incentive Award Plan (2015 Plan). The 2015 Plan provides for the granting of up to 750,495 shares of authorized and unissued shares of common stock in the form of stock options, restricted stock units, and restricted stock awards. The 2015 Plan requires that the exercise price may not be less than the fair value of the stock at the date the option is granted, and that the option price must be paid in full at the time it is exercised. The options granted (incentive stock options for employees and non-qualified stock options for Directors) have an exercise price at the prevailing market price on the date of grant. All options granted are exercisable 20% each year commencing one year after the date of grant and expire ten years after the date of grant. Restricted stock awards are granted at the prevailing market price of the Company's stock and typically vest over a five-year period. Restricted stock awards are subject to forfeiture if employment terminates prior to vesting. The cost of these awards is recognized over the vesting period of the awards based on the fair value of our common stock on the date of the grant. Under the 2005 Plan, 36,772 granted options are outstanding ( 36,772 incentive stock options and 0 nonqualified stock options) as of December 31, 2016 , of which 21,964 are vested. No options were granted during the year ended December 31, 2016 . Under the 2015 Plan, 11,896 granted shares are outstanding as of December 31, 2016 , of which 2,974 are vested. All outstanding granted shares under the 2015 Plan are restricted stock awards. A summary of the status of the Company's stock option plan and changes during the year are presented below: Shares (a) Weighted Average Exercise Price Options outstanding December 31, 2015 120,635 $ 9.02 Granted during the year — — Exercised during the year 2,513 2.57 Forfeited during the year 81,350 12.25 Options outstanding December 31, 2016 36,772 $ 3.87 (a) Options have been adjusted for stock dividends A summary of the status of the Company's restricted stock and changes during the year are presented below: Shares (a) Weighted Average Grant-Date Fair Value Non-vested awards at December 31, 2015 14,870 $ 5.18 Granted during the year — Vested during the year 2,974 5.18 Canceled during the year — — Non-vested awards at December 31, 2016 11,896 $ 5.18 (a) Shares have been adjusted for stock dividends Included in total outstanding options at December 31, 2016 , are 21,964 exercisable shares at a weighted average price of $3.74 , a weighted average remaining contract term of 6.33 years and intrinsic value of $74,000 . Included in salaries and employee benefits for the years ended December 31, 2016, 2015, and 2014 , is $30,000 , $26,000 , and $28,000 of share-based compensation, respectively. The related tax benefit on share-based compensation recorded in the provision for income taxes was not material to either year. As of December 31, 2016, 2015, and 2014 , there was $30,000 , $48,000 , and $85,000 , respectively, of total unrecognized compensation expense related to nonvested stock options. This cost is expected to be recognized over a weighted average period of approximately 3.0 years. No options were exercised during 2015 , while 2,513 options were exercised during 2016 . December 31, 2016 December 31, 2015 December 31, 2014 Weighted average grant-date fair value of stock options granted $ — $ — $ 3.33 Total fair value of stock options vested $ 19,650 $ 19,640 $ 31,440 Total intrinsic value of stock options exercised $ 4,500 $ — $ 39,711 For the year ended December 31, 2016 , the Company granted zero shares of restricted stock. As of December 31, 2016, 2015, and 2014 , there was $35,000 , $44,000 , and $0 , respectively, of total unrecognized compensation expense related to restricted stock. This cost is expected to be recognized over a weighted-average period of approximately 3.4 years. The Bank determines fair value of stock options at grant date using the Black-Scholes-Merton pricing model that takes into account the stock price at the grant date, the exercise price, the expected life of the option, the volatility of the underlying stock and the expected dividend yield and the risk-free interest rate over the expected life of the option. The Bank determines fair value of restricted stock based on the quoted stock price as of the grant date. The weighted average assumptions used in the pricing model are noted in the table below. The expected term of options granted is derived from management's experience, which is based upon historical data on employee exercise and post-vesting behavior. The risk free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. Expected volatility is based on the historical volatility of the Bank's stock over a period commensurate with the expected term of the options. The Company believes that historical volatility is indicative of expectations about its future volatility over the expected term of the options. The Bank expenses the fair value of the option on a straight-line basis over the vesting period for each separately vesting portion of the award. The Bank estimates forfeitures and only recognizes expense for those shares expected to vest. Based upon historical evidence, the Company has determined that because options are granted to a limited number of key employees rather than a broad segment of the employee base, expected forfeitures, if any, are not material. The Company did not grant any restricted stock units or options in 2016 , while the Company granted 14,290 shares in restricted stock units during 2015 . The Company granted 5,524 options in 2014 . The assumptions used for the 2016 , 2015 , and 2014 awards are as follows: Year Ended Year Ended Year Ended December 31, 2016 December 31, 2015 December 31, 2014 Risk Free Interest Rate —% —% 1.70% Expected Dividend Yield —% —% —% Expected Life in Years 0 years 0 years 5.5 years Expected Price Volatility —% —% 67.02% The Black-Scholes-Merton option valuation model requires the input of highly subjective assumptions, including the expected life of the stock based award and stock price volatility. The assumptions listed above represent management's best estimates, but these estimates involve inherent uncertainties and the application of management judgment. As a result, if other assumptions had been used, the Bank's recorded stock-based compensation expense could have been materially different from that previously reported in proforma disclosures. In addition, the Bank is required to estimate the expected forfeiture rate and only recognize expense for those shares expected to vest. If the Bank's actual forfeiture rate is materially different from the estimate, the share-based compensation expense could be materially different. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans 401K Plan The Company has a Cash or Deferred 401(k) Stock Ownership Plan (the “401(k) Plan”) organized under Section 401(k) of the Code. All employees of the Company are initially eligible to participate in the 401(k) Plan upon the first day of the month after date of hire. Under the terms of the plan, the participants may elect to make contributions to the 401(k) Plan as determined by the Board of Directors. Participants are automatically vested 100% in all employee contributions. Participants may direct the investment of their contributions to the 401(k) Plan in any of several authorized investment vehicles. The Company contributes funds to the Plan up to 4% of the employees’ eligible annual compensation. Company contributions are immediately 100% vested at the time of contribution. The Company made matching contributions of $280,000 , $240,000 , and $239,000 to the 401(k) Plan for the years ended December 31, 2016, 2015, and 2014 , respectively. Salary Continuation Plan The Company has an unfunded, non-qualified Salary Continuation Plan for senior executive officers and certain other key officers of the Company, which provides additional compensation benefits upon retirement for a period of at least 15 years. Future compensation under the Plan is earned by the employees for services rendered through retirement and vests over a period of 12 to 32 years. In 2015, the Company entered into Salary Continuation agreements with three officers of the Bank. The Company purchased company owned life insurance (COLI) policies on the life of the officers in connection with the Salary Continuation agreements. Life insurance premium expense totaled $65,000 for the insurance policies purchased. The Company accrues for the salary continuation liability based on anticipated years of service and vesting schedules provided under the Plan. The Company’s current benefit liability is determined based upon vesting and the present value of the benefits at a corresponding discount rate. The discount rate used is an equivalent rate for high-quality investment-grade bonds with lives matching those of the service periods remaining for the salary continuation contracts, which averages approximately 20 years. At December 31, 2016 and 2015 , $3,975,000 and $3,909,000 , respectively, had been accrued to date, based on a discounted cash flow using an average discount rate of 3.21% and 3.28% , respectively, and is included in other liabilities. In connection with the implementation of the Salary Continuation Plans, the Company purchased single premium universal life insurance policies on the life of each of the key employees covered under the Plan. The Company is the owner and beneficiary of these insurance policies. The cash surrender value of the policies was $6,452,000 and $6,095,000 at December 31, 2016 and 2015 , respectively, and is included on the consolidated balance sheet in cash surrender value of life insurance. Income on these policies, net of expense, totaled approximately $474,000 , $268,000 , and $1,405,000 for the years ended December 31, 2016, 2015, and 2014 , respectively. Although the Plan is unfunded, the Company intends to utilize the proceeds of such policies to settle the Plan obligations. Under Internal Revenue Service regulations, the life insurance policies are the property of the Company and are available to satisfy the Company's general creditors . Pursuant to the guidance contained in ASC Topic 715 “ Compensation, ” the Company is required to recognize in accumulated other comprehensive (loss) income, the amounts that have not yet been recognized as components of net periodic benefit costs. These unrecognized costs arise from changes in estimated interest rates used in the calculation of net liabilities under the plan. As of December 31, 2016, 2015, and 2014 , the Company had approximately $383,000 , $371,000 , and $502,000 , respectively in unrecognized net periodic benefit costs arising from changes in interest rates used in calculating the current post-retirement liability required under the plan. This amount represents the difference between the plan liabilities calculated under net present value calculations, and the net plan liabilities actually recorded on the Company’s books at December 31, 2016 and 2015 . Salary continuation expense is included in salaries and benefits expense, and totaled $137,000 , $193,000 , and $143,000 for the years ended December 31, 2016, 2015, and 2014 , respectively. Officer Supplemental Life Insurance Plan The Company owns single premium Bank-owned life insurance policies (BOLI) and Company owned life insurance policies (COLI) on certain officers with a portion of the death benefits available to the officers’ beneficiaries. The BOLI and COLI initial net cash surrender value is equivalent to the premium paid, and it adds income through non-taxable increases in its cash surrender value, net of the cost of insurance, plus any death benefits ultimately received by the Company. The cash surrender value of these insurance policies totaled $12,595,000 and $12,242,000 at December 31, 2016 and 2015 , and is included on the consolidated balance sheet in cash surrender value of life insurance. These policies resulted in a income, net of expense, of approximately $474,000 , $399,000 , and $514,000 for the years ended December 31, 2016, 2015, and 2014 , respectively. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities Lease Commitments : The Company leases land and premises for its branch banking offices and administration facilities. The initial terms of these leases expire at various dates through 2025. Under the provisions of most of these leases, the Company has the option to extend the leases beyond their original terms at rental rates adjusted for changes reported in certain economic indices or as reflected by market conditions. The total expense on land and premises leased under operating leases was $862,000 , $782,000 , and $718,000 for the years ended December 31, 2016, 2015, and 2014 , respectively. Total rent expense for the years ended December 31, 2016, 2015, and 2014 included approximately $8,000 , $16,000 , and $23,000 in reductions, respectively, related to adjustments made pursuant to ASC Topic 840, “ Leases." The adjustments represent the difference between contractual rent amounts paid and rent amounts actually expensed under the straight-line method pursuant to ASC 840. Future minimum rental commitments under existing non-cancelable leases as of December 31, 2016 are as follows: (In thousands): 2017 $ 695 2018 655 2019 479 2020 427 2021 230 Thereafter 829 $ 3,315 Financial Instruments with Off-Balance Sheet Risk: The Company is party to financial instruments with off-balance sheet risk which arise in the normal course of business. These instruments may contain elements of credit risk, interest rate risk and liquidity risk, and include commitments to extend credit and standby letters of credit. The credit risk associated with these instruments is essentially the same as that involved in extending credit to customers and is represented by the contractual amount indicated in the table below: Contractual amount – December 31, (In thousands) 2016 2015 Commitments to extend credit $ 120,485 $ 107,084 Standby letters of credit 1,201 3,295 Commitments to extend credit are agreements to lend to a customer, as long as there is no violation of any condition established in the contract. Substantially all of these commitments are at floating interest rates based on the Prime rate, and most have fixed expiration dates. The Company evaluates each customer's creditworthiness on a case-by-case basis, and the amount of collateral obtained, if deemed necessary, is based on management's credit evaluation. Collateral held varies but includes accounts receivable, inventory, leases, property, plant and equipment, residential real estate and income-producing properties. Many of the commitments are expected to expire without being drawn upon and, as a result, the total commitment amounts do not necessarily represent future cash requirements of the Company. Standby letters of credit are generally unsecured and are issued by the Company to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. The Company’s letters of credit are short-term guarantees and generally have terms from less than one month to approximately 3 years. At December 31, 2016 , the maximum potential amount of future undiscounted payments the Company could be required to make under outstanding standby letters of credit totaled $1,201,000 . In the ordinary course of business, the Company becomes involved in litigation arising out of its normal business activities. Management, after consultation with legal counsel, believes that the ultimate liability, if any, resulting from the disposition of such claims would not be material to the financial position of the Company. |
Fair Value Measurements and Dis
Fair Value Measurements and Disclosure | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Disclosure | Fair Value Measurements and Disclosure The following summary disclosures are made in accordance with the guidance provided by ASC Topic 825 “ Fair Value Measurements and Disclosures ” (formerly Statement of Financial Accounting Standards No. 107, “Disclosures about Fair Value of Financial Instruments,”) which requires the disclosure of fair value information about both on- and off-balance sheet financial instruments where it is practicable to estimate that value. Generally accepted accounting guidance clarifies the definition of fair value, describes methods used to appropriately measure fair value in accordance with generally accepted accounting principles and expands fair value disclosure requirements. This guidance applies whenever other accounting pronouncements require or permit fair value measurements. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels (Level 1, Level 2, and Level 3). Level 1 inputs are unadjusted quoted prices in active markets (as defined) for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability, and reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). The table below is a summary of fair value estimates for financial instruments and the level of the fair value hierarchy within which the fair value measurements are categorized at the periods indicated: December 31, 2016 (In thousands) Carrying Amount Estimated Fair Value Quoted Prices In Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Financial Assets: Cash and cash equivalents $ 113,032 $ 113,032 $ 113,032 $ — $ — Interest-bearing deposits 650 650 — 650 — Investment securities 57,491 57,491 3,716 53,775 — Loans 561,932 557,914 — — 557,914 Accrued interest receivable 3,895 3,895 — 3,895 — Financial Liabilities: Deposits: Noninterest-bearing 262,697 262,697 262,697 — — NOW and money market 235,873 235,873 235,873 — — Savings 75,068 75,068 75,068 — — Time deposits 102,991 702,743 — — 702,743 Total deposits 676,629 1,276,381 573,638 — 702,743 Junior subordinated debt 8,832 8,832 — — 8,832 Accrued interest payable 76 76 — 76 — December 31, 2015 (In thousands) Carrying Amount Estimated Fair Value Quoted Prices In Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Financial Assets: Cash and cash equivalents $ 125,751 $ 125,751 $ 125,751 $ — $ — Interest-bearing deposits 1,528 1,528 — 1,528 — Investment securities 30,893 30,893 3,812 27,081 — Loans 505,663 503,047 — — 503,047 Accrued interest receivable 2,220 2,220 — 2,220 — Financial Liabilities: Deposits: Noninterest-bearing 262,168 262,168 262,168 — — NOW and money market 226,886 226,886 226,886 — — Savings 63,592 63,592 63,592 — — Time deposits 69,159 69,031 — — 69,031 Total deposits 621,805 621,677 552,646 — 69,031 Junior subordinated debt 8,300 8,300 — — 8,300 Accrued interest payable 29 29 — 29 — The Company performs fair value measurements on certain assets and liabilities as the result of the application of current accounting guidelines. Some fair value measurements, such as available-for-sale securities (AFS) and junior subordinated debt are performed on a recurring basis, while others, such as collateral dependent impaired loans, other real estate owned, goodwill and other intangibles, are performed on a nonrecurring basis. The Company’s Level 1 financial assets consist of money market funds and highly liquid mutual funds for which fair values are based on quoted market prices. The Company’s Level 2 financial assets include highly liquid debt instruments of U.S. government agencies, collateralized mortgage obligations, and debt obligations of states and political subdivisions, whose fair values are obtained from readily-available pricing sources for the identical or similar underlying security that may, or may not, be actively traded. The Company’s Level 3 financial assets include certain impaired loans, other real estate owned, goodwill, and intangible assets where the assumptions may be made by us or third parties about assumptions that market participants would use in pricing the asset or liability. From time to time, the Company recognizes transfers between Level 1, 2, and 3 when a change in circumstances warrants a transfer. There were no transfers in or out of Level 1 and Level 2 fair value measurements during the year ended December 31, 2016 . The following tables summarize the Company’s assets and liabilities that were measured at fair value on a recurring and non-recurring basis as of December 31, 2016 (in 000’s): Description of Assets December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) AFS Securities (2): U.S. Government agencies $ 23,203 $ — $ 23,203 $ — U.S Govt collateralized mortgage obligations 30,572 — 30,572 — Mutual Funds 3,716 3,716 — — Total AFS securities 57,491 3,716 53,775 — Impaired Loans (1): Commercial and industrial 301 — — 301 Real estate mortgage — — — — RE construction & development — — — — Agricultural — — — — Installment/Other — — — — Total impaired loans 301 — — 301 Other real estate owned (1) — — — — Total $ 57,792 $ 3,716 $ 53,775 $ 301 Description of Liabilities December 31, 2016 Quoted Prices (Level 1) Significant (Level 2) Significant (Level 3) Junior subordinated debt (2) $ 8,832 $ — $ — $ 8,832 Total $ 8,832 $ — $ — $ 8,832 (1) Nonrecurring (2) Recurring The following tables summarize the Company’s assets and liabilities that were measured at fair value on a recurring and non-recurring basis as of December 31, 2015 (in 000’s): Description of Assets December 31, 2015 Quoted Prices (Level 1) Significant (Level 2) Significant (Level 3) AFS Securities (2): U.S. Government agencies $ 10,123 $ — $ 10,123 $ — U.S Govt collateralized mortgage obligations 16,958 — 16,958 — Mutual Funds 3,812 3,812 — — Total AFS securities 30,893 3,812 27,081 — Impaired Loans (1): Commercial and industrial — — — — Real estate mortgage — — — — RE construction & development — — — — Agricultural — — — — Installment/Other — — — — Total impaired loans — — — — Other real estate owned (1) 9,208 — — 9,208 Total $ 40,101 $ 3,812 $ 27,081 $ 9,208 Description of Liabilities December 31, 2015 Quoted Prices (Level 1) Significant (Level 2) Significant (Level 3) Junior subordinated debt (2) $ 8,300 $ — $ — $ 8,300 Total $ 8,300 $ — $ — $ 8,300 (1) Nonrecurring (2) Recurring The Company did not record a write-down on other real estate owned during the years ended December 31, 2016 and 2014, compared to $188,000 for the same period ended 2015 . The following table presents quantitative information about Level 3 fair value measurements for the Company's assets measured at fair value on a non-recurring basis at December 31, 2016 and December 31, 2015 (in 000's). December 31, 2016 Financial Instrument Fair Value Valuation Technique Unobservable Input Range, Weighted Average Impaired Loans: Commercial and industrial $ 301 Sales Comparison Approach Adjustment for difference between comparable sales 7%-29%, 19.1% December 31, 2015 Financial Instrument Fair Value Valuation Technique Unobservable Input Range, Weighted Average Other Real Estate Owned Other Real Estate Owned $ 9,208 Market Approach Adjustment for negotiated sales contract 2% The following methods and assumptions were used in estimating the fair values of financial instruments: Cash and Cash Equivalents - The carrying amounts reported in the balance sheets for cash and cash equivalents approximate their estimated fair values. Interest-bearing Deposits – Interest bearing deposits in other banks consist of fixed-rate certificates of deposits. Accordingly, fair value has been estimated based upon interest rates currently being offered on deposits with similar characteristics and maturities. Investments – Available for sale securities are valued based upon open-market price quotes obtained from reputable third-party brokers that actively make a market in those securities. Market pricing is based upon specific CUSIP identification for each individual security. To the extent there are observable prices in the market, the mid-point of the bid/ask price is used to determine fair value of individual securities. If that data is not available for the last 30 days, a Level 2-type matrix pricing approach based on comparable securities in the market is utilized. Level-2 pricing may include using a forward spread from the last observable trade or may use a proxy bond like a TBA mortgage to come up with a price for the security being valued. Changes in fair market value are recorded through other comprehensive loss as the securities are available for sale. Loans - Fair values of variable rate loans, which reprice frequently and with no significant change in credit risk, are based on carrying values adjusted for credit risk. Fair values for all other loans, except impaired loans, are estimated using discounted cash flows over their remaining maturities, using interest rates at which similar loans would currently be offered to borrowers with similar credit ratings and for the same remaining maturities. The allowance for loan loss is considered to be a reasonable estimate of loan discount for credit quality concerns. Impaired Loans - Fair value measurements for collateral dependent impaired loans are performed pursuant to authoritative accounting guidance and are based upon either collateral values supported by appraisals and observed market prices. Collateral dependent loans are measured for impairment using the fair value of the collateral. Changes are recorded directly as an adjustment to current earnings. Other Real Estate Owned - Nonrecurring adjustments to certain commercial and residential real estate properties classified as other real estate owned (OREO) are measured at the lower of carrying amount or fair value, less costs to sell. Fair values are generally based on third party appraisals of the property, resulting in a Level 3 classification. In cases where the carrying amount exceeds the fair value, less costs to sell, an impairment loss is recognized. Deposits – In accordance with authoritative accounting guidance, fair values for transaction and savings accounts are equal to the respective amounts payable on demand at December 31, 2016 and 2015 (i.e. carrying amounts). The Company believes that the fair value of these deposits is clearly greater than that prescribed under authoritative accounting guidance. Fair values of fixed-maturity certificates of deposit were estimated using the rates currently offered for deposits with similar remaining maturities. Junior Subordinated Debt – The fair value of the junior subordinated debt was determined based upon a discounted cash flows model utilizing observable market rates and credit characteristics for similar debt instruments. In its analysis, the Company used characteristics that market participants generally use, and considered factors specific to (a) the liability, (b) the principal (or most advantageous) market for the liability, and (c) market participants with whom the reporting entity would transact in that market. For the year ended December 31, 2016 , cash flows were discounted at a rate which incorporates a current market rate for similar-term debt instruments, adjusted for credit and liquidity risks associated with similar junior subordinated debt and circumstances unique to the Company. The Company believes that the subjective nature of theses inputs, due primarily to the current economic environment, require the junior subordinated debt to be classified as a Level 3 fair value. Accrued Interest Receivable and Payable - The carrying value of these instruments is a reasonable estimate of fair value. Off-balance sheet Instruments - Off-balance sheet instruments consist of commitments to extend credit, standby letters of credit and derivative contracts. The contract amounts of commitments to extend credit and standby letters of credit are disclosed in Note 12. Fair values of commitments to extend credit are estimated using the interest rate currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present counterparties’ credit standing. There was no material difference between the contractual amount and the estimated value of commitments to extend credit at December 31, 2016 and 2015 . Fair values of standby letters of credit are based on fees currently charged for similar agreements. The fair value of commitments generally approximates the fees received from the customer for issuing such commitments. These fees are not material to the Company’s consolidated balance sheet and results of operations. The following tables provide a reconciliation of liabilities at fair value using significant unobservable inputs (Level 3) on a recurring basis during the period (in 000’s): December 31, 2016 December 31, 2015 December 31, 2014 Reconciliation of Liabilities: Junior Subordinated Debt Junior Subordinated Debt Junior Subordinated Debt Beginning balance $ 8,300 $ 10,115 $ 11,125 Total losses included in earnings (518 ) (73 ) (102 ) Canceled debt — (1,122 ) — Gain on redemption of liability — 78 — Capitalized interest 1,050 (698 ) (908 ) Ending balance $ 8,832 $ 8,300 $ 10,115 The amount of total losses for the period included in earnings attributable to the change in unrealized gains or losses relating to liabilities still held at the reporting date $ (518 ) $ (73 ) $ (102 ) The following table provides a description of the valuation technique, unobservable input, and qualitative information about the unobservable inputs for the Company’s liabilities classified as Level 3 and measured at fair value on a recurring basis at December 31, 2016 and 2015 : December 31, 2016 December 31, 2015 Financial Instrument Valuation Technique Unobservable Input Weighted Average Financial Instrument Valuation Technique Unobservable Input Weighted Average Subordinated Debt Discounted cash flow Discount Rate 6.46% Subordinated Debt Discounted cash flow Discount Rate 6.82% Management believes that the credit risk adjusted spread utilized in the fair value measurement of the junior subordinated debentures carried at fair value is indicative of the nonperformance risk premium a willing market participant would require under current market conditions, that is, the inactive market. Management attributes the change in fair value of the junior subordinated debentures during the period to market changes in the nonperformance expectations and pricing of this type of debt, and not as a result of changes to our entity-specific credit risk. The narrowing of the credit risk adjusted spread above the Company’s contractual spreads has primarily contributed to the negative fair value adjustments. Generally, an increase in the credit risk adjusted spread and/or a decrease in the three month LIBOR swap curve will result in positive fair value adjustments (and decrease the fair value measurement). Conversely, a decrease in the credit risk adjusted spread and/or an increase in the three month LIBOR swap curve will result in negative fair value adjustments (and increase the fair value measurement). |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2016 | |
Banking and Thrift [Abstract] | |
Regulatory Matters | Regulatory Matters Regulatory Agreement with the Federal Reserve Bank of San Francisco On March 23, 2010, United Security Bancshares (the "Company") and its wholly owned subsidiary, United Security Bank (the "Bank"), entered into a formal written agreement (the “Agreement”) with the Federal Reserve Bank of San Francisco (the “Federal Reserve”) as a result of a regulatory examination that was conducted by the Federal Reserve and the California Department of Financial Institutions (the “DFI”) in June 2009. That examination found significant increases in nonperforming assets, both classified loans and OREO, during 2008 and 2009, and heightened concerns about the Bank’s use of brokered and other wholesale funding sources to fund loan growth, which created increased risk to equity capital and potential volatility in earnings. Under the terms of the Agreement, the Company and the Bank agreed, among other things: to maintain a sound process for determining, documenting, and recording an adequate allowance for loan and lease losses; to improve the management of the Bank's liquidity position and funds management policies; to maintain sufficient capital at the Company and Bank level; and to improve the Bank’s earnings and overall condition. The Company and Bank also agreed not to increase or guarantee any debt, purchase or redeem any shares of stock, declare or pay any cash dividends, or pay interest on the Company's junior subordinated debt or trust preferred securities, without prior written approval from the Federal Reserve. The Company generates no revenue of its own and, as such, relies on dividends from the Bank to pay its operating expenses and interest payments on the Company’s junior subordinated debt. Effective November 19, 2014, the Federal Reserve terminated the Agreement with the Bank and the Company and replaced it with an informal supervisory agreement that requires, among other things, obtaining written approval from the Federal Reserve prior to the payment of dividends from the Bank to the Company or the payment of dividends by the Company or interest on the Company’s junior subordinated debt. The inability of the Bank to pay cash dividends to the Company may hinder the Company’s ability to meet its ongoing operating obligations. Regulatory Order from the California Department of Business Oversight On May 20, 2010, the DFI (now known as the Department of Business Oversight (the “DBO”)) issued a formal written order (the “Order”) pursuant to a consent agreement with the Bank as a result of the same June 2009 joint regulatory examination. The terms of the Order were essentially similar to the Federal Reserve’s Agreement, except for a few additional requirements. On September 24, 2013, the Bank entered into an informal Memorandum of Understanding (the “MOU”) with the DBO and on October 15, 2013, the Order was terminated. The Order and the MOU require the Bank to maintain a ratio of tangible shareholder’s equity to total tangible assets equal to or greater than 9.0% and also requires the DBO’s approval for the Bank to pay a dividend to the Company. Effective October 19, 2016, the DBO terminated the MOU as the Bank had fulfilled the provisions of the MOU. Capital Adequacy - The Company (on a consolidated basis) and the Bank are subject to various regulatory capital requirements adopted by the Board of Governors of the Federal Reserve System (the “Board of Governors”). Failure to meet minimum capital requirements can initiate certain mandates and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the consolidated Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies. Quantitative measures established by the capital adequacy guidelines require insured institutions to maintain a minimum leverage ratio of Tier 1 capital (the sum of common stockholders' equity, noncumulative perpetual preferred stock and minority interests in consolidated subsidiaries, minus intangible assets, identified losses and investments in certain subsidiaries, plus unrealized losses or minus unrealized gains on available for sale securities) to total assets. Institutions which have received the highest composite regulatory rating and which are not experiencing or anticipating significant growth are required to maintain a minimum leverage capital ratio of 3% of Tier 1 capital to total assets. All other institutions are required to maintain a minimum leverage capital ratio of at least 100 to 200 basis points above the 3% minimum requirement. In addition to the general capital adequacy guidelines, pursuant to the DBO’s MOU the Bank is required to maintain a ratio of tangible shareholder’s equity to total tangible assets equal to or greater than 9.0% . For purposes of the MOU, “tangible shareholders’ equity” is defined as shareholders’ equity minus intangible assets. The Bank’s ratio of tangible shareholders’ equity to total tangible assets was 11.7% and 12.9% at December 31, 2016 and 2015 , respectively. The Company has adopted a capital plan that includes guidelines and trigger points to ensure sufficient capital is maintained at the Bank and the Company, and that capital ratios are maintained at a level deemed appropriate under regulatory guidelines given the level of classified assets, concentrations of credit, ALLL, current and projected growth, and projected retained earnings. The capital plan also contains contingency strategies to obtain additional capital as required to fulfill future capital requirements for both the Bank, as a separate legal entity, and the Company on a consolidated basis. The following table shows the Company’s and the Bank’s regulatory capital and regulatory capital ratios at December 31, 2016 and 2015 , as compared to the applicable capital adequacy guidelines: To Be Well Capitalized Under Actual For Capital Adequacy Purposes Prompt Corrective Action Provisions (In thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2016 (Company): Total Capital (to Risk Weighted Assets) $ 108,868 17.26 % $ 50,454 8.00 % N/A N/A Tier 1 Capital (to Risk Weighted Assets) 100,968 16.01 % 37,840 6.00 % N/A N/A Common Equity Tier 1 (to Risk Weighted Assets) 92,600 14.68 % 28,380 4.50 % N/A N/A Tier 1 Leverage ( to Average Assets) 100,968 12.97 % 31,149 4.00 % N/A N/A As of December 31, 2016 (Bank): Total Capital (to Risk Weighted Assets) $ 108,400 17.19 % $ 50,454 8.00 % $ 63,068 10.00 % Tier 1 Capital (to Risk Weighted Assets) 100,500 15.94 % 37,840 6.00 % 50,454 8.00 % Common Equity Tier 1 (to Risk Weighted Assets) 100,500 15.94 % 30,630 4.50 % 40,994 6.50 % Tier 1 Leverage ( to Average Assets) 100,500 12.99 % 30,956 4.00 % 38,695 5.00 % As of December 31, 2015 (Company): Total Capital (to Risk Weighted Assets) $ 100,659 16.65 % $ 48,358 8.00 % N/A N/A Tier 1 Capital (to Risk Weighted Assets) 93,073 15.40 % 36,269 6.00 % N/A N/A Common Equity Tier 1 (to Risk Weighted Assets) 85,237 14.10 % 27,201 4.50 % N/A N/A Tier 1 Leverage ( to Average Assets) 93,073 12.95 % 28,747 4.00 % N/A N/A As of December 31, 2015 (Bank): Total Capital (to Risk Weighted Assets) $ 100,544 16.69 % $ 48,204 8.00 % $ 71,870 10.00 % Tier 1 Capital (to Risk Weighted Assets) 92,981 15.43 % 36,153 6.00 % 57,496 8.00 % Common Equity Tier 1 (to Risk Weighted Assets) 92,981 15.43 % 27,115 4.50 % 46,716 6.50 % Tier 1 Leverage ( to Average Assets) 92,981 12.94 % 28,748 4.00 % 35,935 5.00 % As of December 31, 2014 (Company): Total Capital (to Risk Weighted Assets) $ 91,935 17.29 % $ 42,536 8.00 % N/A N/A Tier 1 Capital (to Risk Weighted Assets) 85,234 16.03 % 21,268 4.00 % N/A N/A Tier 1 Capital (to Average Assets) 85,234 12.49 % 27,295 4.00 % N/A N/A As of December 31, 2014 (Bank): Total Capital (to Risk Weighted Assets) $ 89,889 16.91 % $ 42,536 8.00 % $ 53,170 10.00 % Tier 1 Capital (to Risk Weighted Assets) 83,188 15.65 % 21,268 4.00 % 31,902 6.00 % Tier 1 Capital ( to Average Assets) 83,188 12.25 % 27,164 4.00 % 33,955 5.00 % The Federal Reserve and the Federal Deposit Insurance Corporation approved final capital rules in July 2013 that substantially amend the existing capital rules for banks. These new rules reflect, in part, certain standards initially adopted by the Basel Committee on Banking Supervision in December 2010 (commonly referred to as “Basel III”) as well as requirements encompassed by the Dodd-Frank Act. The final rules set a new common equity tier 1 requirement and higher minimum tier 1 requirements for all banking organizations. They also place limits on capital distributions and certain discretionary bonus payments if a banking organization does not maintain a buffer of common equity tier 1 capital above minimum capital requirements. The rules revise the prompt corrective action framework to incorporate the new regulatory capital minimums. They also enhance risk sensitivity and address weaknesses identified over recent years with the measure of risk-weighted assets. Under regulatory guidelines, the $15 million in Trust Preferred Securities issued by USB Capital Trust II in July of 2007 qualifies as Tier 1 capital up to 25% of Tier 1 capital. Any additional portion of Trust Preferred Securities qualifies as Tier 2 capital. During 2015, a redemption of $3.0 million junior subordinated debt took place. The current balance of Trust Preferred Securities is $12 million . The final rules also require a Common Equity Tier 1 capital conservation buffer of 2.5% of risk-weighted assets which is in addition to the other minimum risk-based capital standards in the rule. The capital buffer requirement will be phased in over three years beginning in 2016, and will effectively raise the minimum required Common Equity Tier 1 RBC Ratio to 7.0% , the Tier 1 RBC Ratio to 8.5% , and the Total RBC Ratio to 10.5% on a fully phased-in basis. Institutions that do not maintain the required capital buffer will become subject to progressively more stringent limitations on the percentage of earnings that can be paid out in dividends or used for stock repurchases, and on the payment of discretionary bonuses to executive management. As of December 31, 2016 , the Company and the Bank meets all capital adequacy requirements to which they are subject. Management believes that, under the current regulations, both will continue to meet their minimum capital requirements in the foreseeable future. Dividends – Cash dividends, if any, paid to shareholders are paid by the Company, subject to restrictions set forth in the California Corporations Code and the terms of the Federal Reserve informal supervisory agreement. All dividends paid by the Company during 2016 and 2015 were in the form of stock dividends rather than cash dividends. The primary source of funds with which cash dividends are paid to shareholders comes from cash dividends received by the Company from the Bank. The Bank’s ability to pay dividends is subject to the restrictions set forth in the California Financial Code and the informal agreements the Bank has entered into with the Federal Reserve and the DBO. Under the Financial Code, the Bank may not pay cash dividends in an amount which exceeds the lesser of the retained earnings of the Bank or the Bank’s net income for the last three fiscal years (less the amount of distributions to shareholders during that period of time). If the above test is not met, cash dividends may only be paid with the prior approval of the DBO, in an amount not exceeding the greater of: (i) the Bank’s retained earnings; (ii) its net income for the last fiscal year; or (iii) its net income for the current fiscal year. During the year ended December 31, 2016 , the Bank’s cash dividends of $ 464,000 paid to the Company were approved by the Federal Reserve and the DBO and funded the Company’s operating costs and payments of interest on its junior subordinated debentures. During the year ended December 31, 2015, a redemption of $3.0 million junior subordinated debt was approved by both agencies. Cash Restrictions - The Bank is required to maintain average reserve balances with the Federal Reserve. During 2005, the Company implemented a deposit reclassification program, which allows the Company to reclassify a portion of transaction accounts to non-transaction accounts for reserve purposes. The deposit reclassification program is provided by a third-party vendor, and has been approved by the Federal Reserve Bank. |
Supplemental Cash Flow Disclosu
Supplemental Cash Flow Disclosures | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Disclosures | Supplemental Cash Flow Disclosures Year Ended December 31, (In thousands) 2016 2015 2014 Cash paid during the period for: Interest $ 1,362 $ 1,243 $ 2,462 Income Taxes 1,710 3,080 — Noncash activities: Loans transferred to foreclosed property — 226 1,308 OREO financed 3,766 — — Sale of limited partnership interest financed — — 3,000 Unrealized (losses) gains on securities (648 ) (265 ) 18 Unrealized gains (losses) on unrecognized post retirement costs (22 ) 224 (113 ) |
Common Stock Dividend
Common Stock Dividend | 12 Months Ended |
Dec. 31, 2016 | |
Common Stock Dividend [Abstract] | |
Common Stock Dividend | Common Stock Dividend The Company declared one-percent (1)% common stock dividends during each of the four quarters ended December 31, 2016, September 30, 2016, June 30, 2016, and March 31, 2016. All 1% stock dividends were considered “small stock dividends” resulting in a transfer between retained earnings and common stock an amount equal to the number of shares issued in the stock dividend multiplied by the stock’s closing price at the date of declaration. Other than for earnings-per-share calculations and share-based compensation disclosures, shares issued for the stock dividend have been treated prospectively for financial reporting purposes. For purposes of earnings per share calculations, the Company’s weighted average shares outstanding and potentially dilutive shares used in the computation of earnings per share have been restated after giving retroactive effect to a 1% stock dividend to shareholders for all periods presented. The Company declared one-percent (1)% common stock dividends during each of the four quarters ended December 31, 2015, September 30, 2015, June 30, 2015, and March 31, 2015. All 1% stock dividends were considered “small stock dividends” resulting in a transfer between retained earnings and common stock an amount equal to the number of shares issued in the stock dividend multiplied by the stock’s closing price at the date of declaration. Other than for earnings-per-share calculations, shares issued for the stock dividend have been treated prospectively for financial reporting purposes. For purposes of earnings per share calculations, the Company’s weighted average shares outstanding and potentially dilutive shares used in the computation of earnings per share have been restated after giving retroactive effect to a 1% stock dividend to shareholders for all periods presented. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share The following table provides a reconciliation of the numerator and the denominator of the basic EPS computation with the numerator and the denominator of the diluted EPS computation. (Weighted average shares have been adjusted to give retroactive recognition for the 1% stock dividend for each of the quarters since the third quarter ended September 30, 2008): Year Ended December 31, (In thousands, except earnings per share data) 2016 2015 2014 Net income available to common shareholders $ 7,385 $ 6,810 $ 6,216 Weighted average shares outstanding 16,703,672 16,702,781 16,686,896 Add: dilutive effect of stock options 7,136 2,156 5,750 Weighted average shares outstanding adjusted for potential dilution 16,710,808 16,704,937 16,692,646 Basic earnings per share $ 0.44 $ 0.41 $ 0.37 Diluted earnings per share $ 0.44 $ 0.41 $ 0.37 Anti-dilutive shares excluded from earnings per share calculation 52,000 136,000 154,000 |
Common Stock Repurchase Plan
Common Stock Repurchase Plan | 12 Months Ended |
Dec. 31, 2016 | |
Common Stock Repurchase Plan [Abstract] | |
Common Stock Repurchase Plan | Common Stock Repurchase Plan On May 16, 2007, the Company’s Board of Directors approved a plan to repurchase, as conditions warrant, up to 846,127 shares of the Company's common stock on the open market or in privately negotiated transactions. The repurchase plan represents approximately 5.00% of the Company's currently outstanding common stock. The duration of the program is open-ended and the timing of purchases will depend on market conditions. As of December 31, 2016 , there were 732,556 shares available for repurchase. As a condition of the MOU entered into with the Federal Reserve Bank of San Francisco (FRB) on November 19, 2014, the Company may not repurchase any of its common stock without prior approval of the FRB. The Company did not repurchase any common shares during the years ended December 31, 2016, 2015, and 2014 . |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets At December 31, 2016 , the Company had goodwill in the amount of $4,488,000 in connection with various business combinations and purchases. This amount was unchanged from the balance of $4,488,000 at December 31, 2015 . While goodwill is not amortized, the Company does conduct periodic impairment analysis on goodwill at least annually or more often as conditions require. The Company performed its analysis of goodwill impairment and concluded goodwill was not impaired at December 31, 2016 . |
Parent Company Only Financial S
Parent Company Only Financial Statements | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Parent Company Only Financial Statements | Parent Company Only Financial Statements The following are the condensed financial statements of United Security Bancshares and should be read in conjunction with the consolidated financial statements: United Security Bancshares – (parent only) Balance Sheets - December 31, 2016 and 2015 (In thousands) 2016 2015 Assets Cash and equivalents $ 148 $ 140 Investment in bank subsidiary 104,554 97,379 Other assets 2,525 2,326 Total assets 107,227 99,845 Liabilities & Shareholders' Equity Liabilities: Junior subordinated debt securities (at fair value) 8,832 8,300 Deferred taxes 1,741 1,910 Total liabilities 10,573 10,210 Shareholders' Equity: Common stock, no par value 20,000,000 shares authorized, 16,705,294 and 16,051,406 issued and outstanding, at December 31, 2016 and December 31, 2015, respectively 56,557 52,572 Retained earnings 40,701 37,265 Accumulated other comprehensive loss (604 ) (202 ) Total shareholders' equity 96,654 89,635 Total liabilities and shareholders' equity $ 107,227 $ 99,845 United Security Bancshares – (parent only) Year ended December 31, Income Statements (In thousands) 2016 2015 2014 Income Loss on fair value of financial liability $ (518 ) $ (73 ) $ (102 ) Gain on redemption of JR subordinated debentures — 78 — Dividends from subsidiary 424 2,416 1,519 Total income (94 ) 2,421 1,417 Expense Interest expense 240 225 241 Other expense 241 256 101 Total expense 481 481 342 (Loss) Income before taxes and equity in undistributed income of subsidiary (575 ) 1,940 1,075 Income tax benefit (411 ) (196 ) (182 ) Undistributed income of subsidiary 7,549 4,674 4,959 Net Income $ 7,385 $ 6,810 $ 6,216 United Security Bancshares – (parent only) Year ended December 31, Statement of Cash Flows (In thousands) 2016 2015 2014 Cash Flows From Operating Activities Net income $ 7,385 $ 6,810 $ 6,216 Adjustments to reconcile net income to cash provided by operating activities: Equity in undistributed income of subsidiary (7,549 ) (4,674 ) (4,959 ) Provision for deferred income taxes (169 ) (518 ) (42 ) Loss on fair value option of financial liability 518 73 102 Gain on redemption of junior subordinated debentures — (78 ) — (Increase) decrease in income tax receivable (198 ) 117 (140 ) Net change in other assets/liabilities 15 (14 ) (1,114 ) Net cash provided by operating activities 2 1,716 63 Cash Flows From Financing Activities Proceeds from exercise of stock options 6 — 95 Redemption of junior subordinated debenture — (1,800 ) — Net cash provided by financing activities 6 (1,800 ) 95 Net increase (decrease) increase in cash and cash equivalents 8 (84 ) 158 Cash and cash equivalents at beginning of year 140 224 66 Cash and cash equivalents at end of year $ 148 $ 140 $ 224 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
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. Nonrecognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. Management has reviewed events occurring through the date the financial statements were issued and no subsequent events occurred requiring accrual or disclosure. |
Organization and Summary of S29
Organization and Summary of Significant Accounting and Reporting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Organization and Summary of Significant Accounting and Reporting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation – The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States and with prevailing practices within the banking industry. The consolidated financial statements include the accounts of United Security Bancshares, and its wholly owned subsidiaries, United Security Bank and subsidiary (the “Bank”) and USB Capital Trust II (the "Trust"). The Trust is deconsolidated pursuant to ASC 810. As a result, the Trust Preferred Securities are not presented on the Company’s consolidated financial statements as equity, but instead they are presented as Junior Subordinated Debentures are presented as a separate liability category. (see Note 8 to the Company’s consolidated financial statements). Intercompany accounts and transactions have been eliminated in consolidation. In the following notes, references to the Bank are references to United Security Bank. References to the Company are references to United Security Bancshares, (including the Bank). United Security Bancshares operates as one business segment providing banking services to commercial establishments and individuals primarily in the San Joaquin Valley of California. |
Nature of Operations | Nature of Operations – United Security Bancshares is a bank holding company, incorporated in the state of California for the purpose of acquiring all the capital stock of the Bank through a holding company reorganization (the “Reorganization”) of the Bank. The Reorganization, which was accounted for in a manner similar to a pooling of interests, was completed on June 12, 2001. Management believes the Reorganization has provided the Company greater operating and financial flexibility and has permitted expansion into a broader range of financial services and other business activities. During July 2007 the Company formed USB Capital Trust II and issued $15.0 million in Trust Preferred Securities with terms similar to those originally issued under USB Capital Trust I. During 2015, the Bank purchased $3.0 million of the Company's junior subordinated debentures related to the Company's trust preferred securities at a fair value discount of 40% . Subsequently, the Company purchased those shares from the Bank and canceled $3.0 million in par value of the junior subordinated debentures, realizing a $78,000 gain on redemption. The contractual principal balance of the Company's debentures relating to its trust preferred securities is $12.0 million as of December 31, 2016 . (See Note 8. “Junior Subordinated Debt/Trust Preferred Securities”). USB Investment Trust Inc was incorporated effective December 31, 2001, as a special purpose real estate investment trust (“REIT”) under Maryland law. The REIT is a subsidiary of the Bank and was funded with $133.0 million in real estate-secured loans contributed by the Bank. USB Investment Trust was originally formed to give the Bank flexibility in raising capital, and reduce the expenses associated with holding the assets contributed to USB Investment Trust. The Bank was founded in 1987 and currently operates eleven branches and one construction lending office in an area from eastern Madera County to western Fresno County, as well as Taft and Bakersfield in Kern County, and Campbell in Santa Clara County. The Bank also operates one financial services department located in Fresno, California. The Bank’s primary source of revenue is interest income through providing loans to customers, who are predominantly small and middle-market businesses and individuals. The Bank engages in a full compliment of lending activities, including real estate mortgage, commercial and industrial, real estate construction, agricultural and consumer loans, with particular emphasis on short and medium term obligations. The Bank offers a wide range of deposit instruments. These include personal and business checking accounts and savings accounts, interest-bearing negotiable order of withdrawal (NOW) accounts, money market accounts and time certificates of deposit. Most of the Bank's deposits are attracted from individuals and from small and medium-sized business-related sources. The Bank also offers a wide range of specialized services designed to attract and service the needs of commercial customers and account holders. These services include cashiers checks, travelers checks, money orders, and foreign drafts. In addition, the Bank offers Internet banking services to its commercial and retail customers, and offers certain financial and wealth management services through its financial services department. The Bank does not operate a trust department, however it makes arrangements with its correspondent bank to offer trust services to its customers upon request. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change, relate to the determination of the allowance for loan losses, determination of goodwill, fair value of junior subordinated debt and certain collateralized mortgage obligations, and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. |
Subsequent events | Subsequent events —The Company has evaluated events and transactions for potential recognition or disclosure through the day the financial statements were issued. |
Significant Accounting Policies | Significant Accounting Policies - The Company follows accounting standards set by the Financial Accounting Standards Board, commonly referred to as “FASB.” FASB sets generally accepted accounting principles (GAAP) that the Company follows to ensure the consistent reporting of its consolidated financial condition, consolidated results of operations, and consolidated cash flows. References to GAAP issued by FASB in these footnotes are to FASB Accounting Standards Codification , sometimes referred to as the Codification or ASC. |
Cash and cash equivalents | Cash and cash equivalents – Cash and cash equivalents include cash on hand, amounts due from banks, federal funds sold and repurchase agreements. At times throughout the year, balances can exceed FDIC insurance limits. Generally, federal funds sold and repurchase agreements are sold for one-day periods. The Bank did not have any repurchase agreements during 2016 or 2015 , or at December 31, 2016 and 2015 . All cash and cash equivalents have maturities when purchased of three months or less. |
Securities | Securities - Debt and equity securities classified as available for sale are reported at fair value, with unrealized gains and losses excluded from net income and reported, net of tax, as a separate component of comprehensive income and shareholders’ equity. Debt securities classified as held to maturity are carried at amortized cost. Gains and losses on disposition are reported using the specific identification method for the adjusted basis of the securities sold. Premiums and discounts are recognized in interest income using the interest method over the period to maturity. The Company classifies its securities as available for sale or held to maturity, and periodically reviews its investment portfolio on an individual security basis. Securities that are to be held for indefinite periods of time (including, but not limited to, those that management intends to use as part of its asset/liability management strategy, those which may be sold in response to changes in interest rates, changes in prepayments or any such other factors) are classified as securities available for sale. Securities which the Company has the ability and intent to hold to maturity are classified as held to maturity. Investments with fair values that are less than amortized cost are considered impaired. Impairment may result from either a decline in the financial condition of the issuing entity or, in the case of fixed interest rate investments, from rising interest rates. At each financial statement date, management assesses each investment to determine if impaired investments are temporarily impaired or if the impairment is other-than-temporary based upon the positive and negative evidence available. Evidence evaluated includes, but is not limited to, industry analyst reports, credit market conditions, and interest rate trends. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between the amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: (1) OTTI related to credit loss, which must be recognized in the income statement; and (2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. |
Loans | Loans - Interest income on loans is credited to income as earned and is calculated by using the simple interest method on the daily balance of the principal amounts outstanding. Loans are placed on non-accrual status when principal or interest is past due for 90 days and/or when management believes the collection of amounts due is doubtful. For loans placed on nonaccrual status, the accrued and unpaid interest receivable may be reversed at management's discretion based upon management's assessment of collectability, and interest is thereafter credited to principal to the extent necessary to eliminate doubt as to the collectability of the net carrying amount of the loan. Nonrefundable fees and related direct costs associated with the origination or purchase of loans are deferred and netted against outstanding loan balances. The net deferred fees and costs are generally amortized into interest income over the loan term using the interest method. Other credit-related fees, such as standby letter of credit fees, loan placement fees and annual credit card fees are recognized as noninterest income during the period the related service is performed. |
Allowance for Credit Losses and Reserve for Unfunded Loan Commitments | Allowance for Credit Losses and Reserve for Unfunded Loan Commitments - The allowance for credit losses is maintained to provide for losses that can reasonably be anticipated. The allowance is based on ongoing quarterly assessments of the probable losses inherent in the loan portfolio, and to a lesser extent, unfunded loan commitments. The reserve for unfunded loan commitments is a liability on the Company’s consolidated financial statements and is included in other liabilities. The liability is computed using a methodology similar to that used to determine the allowance for credit losses, modified to take into account the probability of a drawdown on the commitment. The allowance for credit losses is increased by provisions charged to operations during the current period and reduced by negative provisions and loan charge-offs, net of recoveries. Loans are charged against the allowance when management believes that the collection of the principal is unlikely. The allowance is an amount that management believes will be adequate to absorb losses inherent in existing loans, based on evaluations of the probability of collection. In evaluating the probability of collection, management is required to make estimates and assumptions that affect the reported amounts of loans, allowance for credit losses and the provision for credit losses charged to operations. Actual results could differ significantly from those estimates. These evaluations take into consideration such factors as the composition of the portfolio, overall portfolio quality, loan concentrations, specific problem loans, and current economic conditions that may affect the borrowers' ability to pay. The Company’s methodology for assessing the adequacy of the allowance for credit losses consists of several key elements, which include: - the formula allowance - specific allowances for problem graded loans identified as impaired - and the unallocated allowance The formula allowance is calculated by applying loss factors to outstanding loans. Loss factors are based on the Company’s historical loss experience and on the internal risk grade of those loans and, may be adjusted for significant factors, including economic factors that, in management's judgment, affect the collectability of the portfolio as of the evaluation date. Management determines the loss factors for problem graded loans (substandard, doubtful, and loss), special mention loans, and pass graded loans, based on a loss migration model. The migration analysis incorporates loan losses over the previous quarters as determined by management (time horizons adjusted as business cycles or environment changes) and loss factors are adjusted to recognize and quantify the loss exposure from changes in market conditions and trends in the Company’s loan portfolio. Those factors include 1) trends in delinquent and nonaccrual loans, 2) trends in loan volume and terms, 3) effects of changes in lending policies, 4) concentrations of credit, 5) competition, 6) national and local economic trends and conditions, 7) experience of lending staff, 8) loan review and Board of Directors oversight, 9) high balance loan concentrations, and 10) other business conditions. For purposes of this analysis, loans are grouped by internal risk classifications, which are “pass," “special mention,” “substandard,” “doubtful,” and “loss." Certain loans are homogeneous in nature and are therefore pooled by risk grade. These homogeneous loans include consumer installment and home equity loans. Specific allowances are established based on management’s periodic evaluation of loss exposure inherent in impaired loans. For impaired loans, specific allowances are determined based on the collateralized value of the underlying properties, the net present value of the anticipated cash flows, or the market value of the underlying assets. A loan is considered impaired when management determines that it is probable that the Company will be unable to collect all amounts due according to the original contractual terms of the loan agreement. Impairment is measured by the difference between the original recorded investment in the loan and the estimated present value of the total expected future cash flows, discounted at the loan’s effective rate, or the fair value of the collateral, less estimated selling costs, if the loan is collateral dependent. The unallocated portion of the allowance is based upon management’s evaluation of various conditions that are not directly measured in the determination of the formula and specific allowances. The conditions may include, but are not limited to, general economic and business conditions affecting the key lending areas of the Company, credit quality trends, collateral values, loan volumes and concentrations, and other business conditions. |
Premises and Equipment | Premises and Equipment - Premises and equipment are carried at cost less accumulated depreciation. Depreciation expense is computed principally on the straight-line method over the estimated useful lives of the assets. Estimated useful lives are as follows: Buildings 31 years Furniture and equipment 3-7 Years |
Other Real Estate Owned | Other Real Estate Owned - Real estate properties acquired through, or in lieu of, loan foreclosure are to be sold and are initially recorded at fair value of the property, less estimated costs to sell. The excess, if any, of the loan amount over the fair value is charged to the allowance for credit losses. Subsequent declines in the fair value of other real estate owned, along with related revenue and expenses from operations, are charged to noninterest expense. |
Intangible Assets and Goodwill | Intangible Assets and Goodwill - Intangible assets are comprised of core deposit intangibles, other specific identifiable intangibles, and goodwill acquired in branch acquisitions where the consideration given exceeded the fair value of the net assets acquired. Intangible assets and goodwill are reviewed at least annually for impairment. All core deposit intangibles related to previous mergers have been fully amortized. During 2016 and 2015 , the Company recognized no impairment losses on the core deposit intangible related to the deposits purchased in the Legacy merger consummated during February 2007. The Company estimates no aggregate amortization expense related to intangible assets for the next five years. Goodwill amounts resulting from the acquisitions of Taft National Bank during April 2004, and Legacy Bank during February 2007 are considered to have an indefinite life and are not amortized. At December 31, 2016 , goodwill related to Taft National Bank totaled $1.6 million , and goodwill related to Legacy Bank totaled $2.9 million . Impairment testing of goodwill is performed at the reporting level during December of each year for Taft, and during March of each year for Legacy. During 2016 and 2015 , the Company did not recognize impairment adjustments on the goodwill related to the Legacy or Taft Bank mergers (see Note 19 to the Company’s consolidated financial statements contained herein for details of the goodwill impairment.) |
Income Taxes | Income Taxes - Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Company's assets and liabilities using the liability method, and are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. |
Net Income per Share | Net Income per Share - Basic income per common share is computed based on the weighted average number of common shares outstanding. Diluted income per share includes the effect of stock options and other potentially dilutive securities using the treasury stock method to the extent they have a dilutive impact. Net income per share has been retroactively adjusted for all stock dividends declared. |
Cash Flow Reporting | Cash Flow Reporting - For purposes of reporting cash flows, cash and cash equivalents include cash on hand, noninterest-bearing amounts due from banks, federal funds sold and securities purchased under agreements to resell. Federal funds and securities purchased under agreements to resell are generally sold for one-day periods. Net cash flows are reported for interest-bearing deposits with other banks, loans to customers, and deposits held for customers. |
Transfers of Financial Assets | Transfers of Financial Assets - Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Advertising Costs | Advertising Costs - The Company expenses marketing costs as they are incurred. |
Stock Based Compensation | Stock Based Compensation - The Company has a stock-based employee compensation plan, which is described more fully in Note 10. The Company accounts for all share-based payments to employees, including grants of employee stock options and restricted stock units and awards, to be recognized in the financial statements based on the grant date fair value of the award. The fair value is amortized over the requisite service period (generally the vesting period). Included in salaries and employee benefits for the years ended December 31, 2016, 2015, and 2014 are $30,000 , $26,000 , an $28,000 , respectively, of share-based compensation. The related tax benefit, recorded in the provision for income taxes, was not significant. All share data contained within the financial statements has been retroactively restated for stock based transactions (i.e. stock splits and stock dividends.) |
Federal Home Loan Bank stock and Federal Reserve Stock | Federal Home Loan Bank stock and Federal Reserve Stock - As a member of the Federal Home Loan Bank (FHLB), the Company is required to maintain an investment in capital stock of the FHLB. In addition, as a member of the Federal Reserve Bank (FRB), the Company is required to maintain an investment in capital stock of the FRB. The investments in both the FHLB and the FRB are carried at cost, which approximates their fair value, in the accompanying consolidated balance sheets under other assets and are subject to certain redemption requirements by the FHLB and FRB. Stock redemptions are at the discretion of the FHLB and FRB. While technically these are considered equity securities, there is no market for the FHLB or FRB stock. Therefore, the shares are considered as restricted investment securities. Management periodically evaluates the stock for other-than-temporary impairment. Management’s determination of whether these investments are impaired is based on its assessment of the ultimate recoverability of cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of cost is influenced by criteria such as (1) the significance of any decline in net assets of the FHLB or FRB as compared to the capital stock amount of the FHLB or FRB and the length of time this situation has persisted, (2) commitments by the FHLB or FRB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB or FRB, (3) the impact of legislative and regulatory changes on institutions and, accordingly, the customer base of the FHLB or FRB, and (4) the liquidity position of the FHLB or FRB. |
Comprehensive Income | Comprehensive Income - Comprehensive income is comprised of net income and other comprehensive income. Other comprehensive income includes items recorded directly to equity, such as unrealized gains and losses on securities available-for-sale and unrecognized costs of salary continuation defined benefit plans. Comprehensive income is presented in the Consolidated Statements of Other Comprehensive Income. |
Segment Reporting | Segment Reporting - The Company's operations are solely in the financial services industry and include providing to its customers traditional banking and other financial services. The Company operates primarily in the San Joaquin Valley region of California. Management makes operating decisions and assesses performance based on an ongoing review of the Company's consolidated financial results. Therefore, the Company has a single operating segment for financial reporting purposes. |
New Accounting Standards | New Accounting Standards: In January 2014, FASB issued ASU 2014-04, Receivables - Troubled Debt Restructurings by Creditors. The amendments in this ASU clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this ASU are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. An entity can elect to adopt the amendments in this ASU using either a modified retrospective transition method or a prospective transition method. Early adoption is permitted. This ASU was effective for the Company on January 1, 2015 and did not have a material impact on the Company's consolidated financial statements. In January 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-01 Accounting for Investments in Qualified Affordable Housing Projects. This ASU provides "guidance on accounting for investments by a reporting entity in flow-through limited liability entities that manage or invest in affordable housing projects that qualify for the low-income housing tax credit." It allows the proportional amortization method to be used by a reporting entity if certain conditions are met. The ASU also defines when a qualified affordable housing project through a limited liability entity should be tested for impairment. If a qualified affordable housing project does not meet the conditions for using the proportional amortization method, the investment should be accounted for using an equity method investment or a cost method investment. This ASU was effective for the Company on January 1, 2015 and did not have a material impact on the Company's consolidated financial statements. The Company will continue to account for our low-income housing tax credit investments using the equity method subsequent to the adoption of ASU 2014-01 and does not expect any impact on the Company's consolidated financial statements. In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606), which creates Topic 606 and supersedes Topic 605, Revenue Recognition. In August 2015, FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606), which postponed the effective date of 2014-09. Multiple ASUs and interpretative guidance have been issued in connection with ASU 2014-09. The core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In general, the new guidance requires companies to use more judgment and make more estimates than under current guidance, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The standard is effective for public entities for interim and annual periods beginning after December 15, 2017; early adoption is not permitted. For financial reporting purposes, the standard allows for either full retrospective adoption, meaning the standard is applied to all of the periods presented, or modified retrospective adoption, meaning the standard is applied only to the most current period presented in the financial statements with the cumulative effect of initially applying the standard recognized at the date of initial application. The Company has begun their process to implement this new standard by reviewing all revenue sources to determine the sources that are in scope for this guidance. As a bank, key revenue sources, such as interest income have been identified as out of scope of this new guidance. The Company has not yet determined the financial statement impact this guidance will have. In January 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-01 Financial Instruments-Overall: Recognition and Measurements of Financial Assets and Financial Liabilities. This ASU requires equity investments to be measured at fair value, with changes in fair value recognized in net income. The amendment also simplifies the impairment assessment of equity investments for which fair value is not readily determinable by requiring an entity to perform a qualitative assessment to identify impairment. The ASU is effective for fiscal years beginning after December 15, 2017, and interim periods therein. The Company expects this ASU to impact its consolidated income and other comprehensive income disclosures for the fair value of its mutual fund investment and junior subordinated debenture. |
Reclassifications | Reclassifications - Certain reclassifications have been made to prior year financial statements to conform to the classifications used in 2016 . None of the reclassifications had an impact on equity or net income. |
Organization and Summary of S30
Organization and Summary of Significant Accounting and Reporting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Organization and Summary of Significant Accounting and Reporting Policies [Abstract] | |
Premises and Equipment Estimated Useful Life | Estimated useful lives are as follows: Buildings 31 years Furniture and equipment 3-7 Years |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Comparison of Amortized Cost and Fair Value of Securities Available for Sale | Following is a comparison of the amortized cost and approximate fair value of investment securities at December 31, 2016 and December 31, 2015 : (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Carrying Amount) December 31, 2016 Securities available for sale: U.S. Government agencies $ 22,992 $ 280 (69 ) $ 23,203 U.S. Government sponsored entities & agencies collateralized by mortgage obligations 30,867 107 (402 ) 30,572 Mutual Funds 4,000 — (284 ) 3,716 Total securities available for sale $ 57,859 $ 387 $ (755 ) $ 57,491 December 31, 2015 Securities available for sale: U.S. Government agencies $ 9,778 $ 453 $ (108 ) $ 10,123 U.S. Government sponsored entities & agencies collateralized by mortgage obligations 16,835 175 (52 ) 16,958 Mutual Funds 4,000 — (188 ) 3,812 Total securities available for sale $ 30,613 $ 628 $ (348 ) $ 30,893 |
Contractual Maturities on Collateralized Mortgage Obligations | The amortized cost and fair value of securities available for sale at December 31, 2016 , by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because issuers have the right to call or prepay obligations with or without call or prepayment penalties. Contractual maturities on collateralized mortgage obligations cannot be anticipated due to allowed paydowns. Mutual funds are included in the "due in one year or less" category below. December 31, 2016 Amortized Cost Fair Value (Carrying Amount) (In thousands) Due in one year or less $ 4,000 $ 3,716 Due after one year through five years — — Due after five years through ten years 847 861 Due after ten years 22,145 22,342 U.S. Government sponsored entities & agencies collateralized by mortgage obligations 30,867 30,572 $ 57,859 $ 57,491 |
Temporarily Impaired Investment Securities | The following summarizes temporarily impaired investment securities at December 31, 2016 and 2015 : Less than 12 Months 12 Months or More Total (In thousands) Fair Value (Carrying Amount) Unrealized Losses Fair Value (Carrying Amount) Unrealized Losses Fair Value (Carrying Amount) Unrealized Losses December 31, 2016 Securities available for sale: U.S. Government agencies $ 12,281 $ (69 ) $ — $ — $ 12,281 $ (69 ) U.S. Government sponsored entities & agencies collateralized by mortgage obligations 25,904 (402 ) — — 25,904 (402 ) Mutual Funds — — 3,716 (284 ) 3,716 (284 ) Total impaired securities $ 38,185 $ (471 ) $ 3,716 $ (284 ) $ 41,901 $ (755 ) December 31, 2015 Securities available for sale: U.S. Government agencies $ 79 $ (108 ) $ — $ — $ 79 $ (108 ) U.S. Government sponsored entities & agencies collateralized by mortgage obligations 9,913 (52 ) — — 9,913 (52 ) Mutual Funds — — 3,812 (188 ) 3,812 (188 ) Total impaired securities $ 9,992 $ (160 ) $ 3,812 $ (188 ) $ 13,804 $ (348 ) |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Loans | Loans are comprised of the following: In thousands) December 31, 2016 December 31, 2015 Commercial and Business loans $ 47,464 $ 54,503 Government Program Loans 1,541 1,323 Total Commercial and Industrial 49,005 55,826 Real estate – Mortgage: Commercial Real Estate 200,213 182,554 Residential Mortgages 87,388 68,811 Home Improvement and Home Equity loans 599 867 Total Real Estate Mortgage 288,200 252,232 Real Estate Construction and Development 130,687 130,596 Agricultural 56,918 52,137 Installment 44,949 24,527 Total Loans $ 569,759 $ 515,318 |
Loans to Affiliates | Loans to directors, officers, principal shareholders and their affiliates are summarized below: December 31, (In thousands) 2016 2015 2014 Aggregate amount outstanding, beginning of year $ 3,754 $ 2,120 $ 2,916 New loans or advances during year 3,788 3,946 796 Repayments during year (1,704 ) (2,312 ) (1,592 ) Aggregate amount outstanding, end of year $ 5,838 $ 3,754 $ 2,120 Loan commitments, end of year $ 4,891 $ 7,431 $ 3,761 |
Delinquent Loans | The following is a summary of delinquent loans at December 31, 2016 (in thousands): December 31, 2016 Loans 30-60 Days Past Due Loans 61-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Current Loans Total Loans Accruing Loans 90 or More Days Past Due Commercial and Business Loans $ — $ 432 $ — $ 432 $ 48,009 $ 48,441 $ — Government Program Loans — — 290 290 1,251 1,541 — Total Commercial and Industrial — 432 290 722 49,260 49,982 — Commercial Real Estate Loans — — — — 199,810 199,810 — Residential Mortgages — — — — 87,388 87,388 — Home Improvement and Home Equity Loans — — — — 599 599 — Total Real Estate Mortgage — — — — 287,797 287,797 — Real Estate Construction and Development Loans 166 — 1,250 1,416 128,697 130,113 1,250 Agricultural Loans — — — — 56,918 56,918 — Consumer Loans — — 965 965 43,785 44,750 — Overdraft protection Lines — — — — 48 48 — Overdrafts — — — — 151 151 — Total Installment — — 965 965 43,984 44,949 — Total Loans $ 166 $ 432 $ 2,505 $ 3,103 $ 566,656 $ 569,759 $ 1,250 The following is a summary of delinquent loans at December 31, 2015 (in thousands): December 31, 2015 Loans 30-60 Days Past Due Loans 61-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Current Loans Total Loans Accruing Loans 90 or More Days Past Due Commercial and Business Loans $ — $ — $ — $ — $ 54,503 $ 54,503 $ — Government Program Loans 13 — — 13 1,310 1,323 — Total Commercial and Industrial 13 — — 13 55,813 55,826 — Commercial Real Estate Loans 721 — — 721 181,833 182,554 — Residential Mortgages 62 392 — 454 68,357 68,811 — Home Improvement and Home Equity Loans — 39 — 39 828 867 — Total Real Estate Mortgage 783 431 — 1,214 251,018 252,232 — Real Estate Construction and Development Loans — 706 — 706 129,890 130,596 — Agricultural Loans — — — — 52,137 52,137 — Consumer Loans — 650 — 650 23,657 24,307 — Overdraft protection Lines — — — — 61 61 — Overdrafts — — — — 159 159 — Total Installment — 650 — 650 23,877 24,527 — Total Loans $ 796 $ 1,787 $ — $ 2,583 $ 512,735 $ 515,318 $ — |
Nonaccrual Loan Balances | The following is a summary of nonaccrual loan balances at December 31, 2016 and 2015 (in thousands). December 31, 2016 December 31, 2015 Commercial and Business Loans $ 275 $ — Government Program Loans 290 328 Total Commercial and Industrial 565 328 Commercial Real Estate Loans 1,126 1,243 Residential Mortgages — 392 Home Improvement and Home Equity Loans — — Total Real Estate Mortgage 1,126 1,635 Real Estate Construction and Development Loans 4,608 5,580 Agricultural Loans — — Consumer Loans 965 650 Total Installment 965 650 Total Loans $ 7,264 $ 8,193 |
Impaired Loans | The following is a summary of impaired loans at December 31, 2016 (in thousands). December 31, 2016 Unpaid Contractual Principal Balance Recorded Investment With No Allowance (1) Recorded Investment With Allowance (1) Total Recorded Investment Related Allowance Average Recorded Investment (2) Interest Recognized (2) Commercial and Business Loans $ 4,635 $ 495 $ 4,158 $ 4,653 $ 757 $ 5,050 $ 302 Government Program Loans 356 356 — 356 — 372 20 Total Commercial and Industrial 4,991 851 4,158 5,009 757 5,422 322 Commercial Real Estate Loans 1,454 — 1,456 1,456 450 1,503 89 Residential Mortgages 2,467 526 1,949 2,475 153 2,874 138 Home Improvement and Home Equity Loans — — — — — — — Total Real Estate Mortgage 3,921 526 3,405 3,931 603 4,377 227 Real Estate Construction and Development Loans 6,267 6,274 — 6,274 — 8,794 361 Agricultural Loans — — — — — 5 8 Consumer Loans 965 965 — 965 — 968 35 Total Installment 965 965 — 965 — 968 35 Total Impaired Loans $ 16,144 $ 8,616 $ 7,563 $ 16,179 $ 1,360 $ 19,566 $ 953 (1) The recorded investment in loans includes accrued interest receivable of $ 35,000 . (2) Information is based on the twelve month period ended December 31, 2016 . The following is a summary of impaired loans at December 31, 2015 (in thousands). December 31, 2015 Unpaid Contractual Principal Balance Recorded Recorded Total Related Allowance Average Interest Recognized (2) Commercial and Business Loans $ 4,855 $ 541 $ 4,333 $ 4,874 $ 530 $ 2,537 $ 302 Government Program Loans 327 327 — 327 — 358 29 Total Commercial and Industrial 5,182 868 4,333 5,201 530 2,895 331 Commercial Real Estate Loans 1,243 — 1,243 1,243 477 1,618 74 Residential Mortgages 4,032 1,051 2,999 4,050 158 4,092 185 Home Improvement and Home Equity Loans — — — — — 11 — Total Real Estate Mortgage 5,275 1,051 4,242 5,293 635 5,721 259 Real Estate Construction and Development Loans 12,489 5,340 7,179 12,519 1,282 7,781 820 Agricultural Loans 16 16 — 16 — 22 9 Consumer Loans 650 — 650 650 650 1,043 21 Total Installment 650 — 650 650 650 1,043 21 Total Impaired Loans $ 23,612 $ 7,275 $ 16,404 $ 23,679 $ 3,097 $ 17,462 $ 1,440 (1) The recorded investment in loans includes accrued interest receivable of $ 67,000 . (2) Information is based on the twelve month period ended December 31, 2015 . The following is a summary of impaired loans at December 31, 2014 (in thousands). December 31, 2014 Unpaid Contractual Principal Balance Recorded Recorded Total Related Allowance Average Interest Recognized (2) Commercial and Business Loans $ 996 $ 770 $ 230 $ 1,000 $ 64 $ 847 $ 76 Government Program Loans 421 421 — 421 — 250 28 Total Commercial and Industrial 1,417 1,191 230 1,421 64 1,097 104 Commercial Real Estate Loans 3,145 1,794 1,351 3,145 478 5,765 244 Residential Mortgages 4,315 1,474 2,852 4,326 170 4,564 188 Home Improvement and Home Equity Loans 42 42 — 42 — 11 3 Total Real Estate Mortgage 7,502 3,310 4,203 7,513 648 10,340 435 Real Estate Construction and Development Loans 6,367 6,371 — 6,371 — 3,362 209 Agricultural Loans 32 32 — 32 — 37 9 Consumer Loans 695 655 45 700 3 209 37 Overdraft protection Lines — — — — — — — Overdrafts — — — — — — — Total Installment 695 655 45 700 3 209 37 Total Impaired Loans $ 16,013 $ 11,559 $ 4,478 $ 16,037 $ 715 $ 15,045 $ 794 (1) The recorded investment in loans includes accrued interest receivable of $24,000 . (2) Information is based on the twelve month period ended December 31, 2014 . |
Troubled Debt Restructuring Activity | The following tables illustrate TDR activity for the periods indicated (dollars in thousands): Year ended December 31, 2016 Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Number of Contracts in Default Recorded Investment on Defaulted TDRs Troubled Debt Restructurings Commercial and Business Loans 5 $ 1,295 $ 1,024 1 $ 290 Government Program Loans 1 100 100 — — Commercial Real Estate Term Loans — — — — — Single Family Residential Loans — — — — — Home Improvement and Home Equity Loans — — — — — Real Estate Construction and Development Loans 1 1,246 1,246 — — Agricultural Loans — — — — — Consumer Loans — — — — — Overdraft protection Lines — — — — — Total Loans 7 $ 2,641 $ 2,370 1 $ 290 Year ended December 31, 2015 Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Number of Contracts in Default Recorded Investment on Defaulted TDRs Troubled Debt Restructurings Commercial and Business Loans 1 $ 81 $ 76 — $ — Government Program Loans — — — — — Commercial Real Estate Term Loans — — — — — Single Family Residential Loans 1 258 248 — — Home Improvement and Home Equity Loans — — — — — Real Estate Construction and Development Loans 1 6,446 6,446 — — Agricultural Loans — — — — — Consumer Loans — — — — — Overdraft protection Lines — — — — — Total Loans 3 $ 6,785 $ 6,770 — $ — December 31, 2014 Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Number of Contracts in Default Recorded Investment on Defaulted TDRs Troubled Debt Restructurings Commercial and Business Loans 5 $ 456 $ 437 1 $ — Government Program Loans 1 544 539 2 421 Commercial Real Estate Term Loans 2 1,948 1,362 — — Single Family Residential Loans — — — 3 656 Home Improvement and Home Equity Loans — — — — — Real Estate Construction and Development Loans 2 5,665 5,548 2 394 Agricultural Loans — — — — — Consumer Loans 1 630 650 — — Overdraft protection Lines — — — — — Total Loans 11 $ 9,243 $ 8,536 8 $ 1,471 The following tables summarize TDR activity by loan category for the years ended December 31, 2016, 2015, and 2014 (in thousands). Twelve Months Ended December 31, 2016 Commercial and Industrial Commercial Real Estate Residential Mortgages Home Equity Real Estate Construction and Development Agricultural Installment & Other Total Beginning balance $ 898 $ 1,243 $ 3,533 $ — $ 12,168 $ 16 $ 650 $ 18,508 Defaults (290 ) — — — — — — (290 ) Additions 1,124 1,246 — — — — — 2,370 Principal advances (reductions) (376 ) (1,035 ) (1,165 ) — (5,901 ) (16 ) 315 (8,178 ) Ending balance $ 1,356 $ 1,454 $ 2,368 $ — $ 6,267 $ — $ 965 $ 12,410 Allowance for loan loss $ 104 $ 453 $ 157 $ — $ — $ — $ — $ 714 Twelve Months Ended December 31, 2015 Commercial and Industrial Commercial Real Estate Residential Mortgages Home Equity Real Estate Construction and Development Agricultural Installment & Other Total Beginning balance $ 1,306 $ 2,713 $ 4,225 $ — $ 6,029 $ 32 $ 695 $ 15,000 Defaults — — — — — — — — Additions 76 — 248 — 6,446 — — 6,770 Principal reductions (484 ) (1,470 ) (940 ) — (307 ) (16 ) (45 ) (3,262 ) Ending balance $ 898 $ 1,243 $ 3,533 $ — $ 12,168 $ 16 $ 650 $ 18,508 Allowance for loan loss $ 32 $ 477 $ 149 $ — $ 384 $ — $ 650 $ 1,692 December 31, 2014 Commercial and Industrial Commercial Real Estate Residential Mortgages Home Equity Real Estate Construction and Development Agricultural Installment & Other Total Beginning balance $ 675 $ 1,468 $ 5,273 $ — 1,551 $ 44 $ 48 $ 9,059 Defaults (421 ) — (656 ) — (394 ) — — (1,471 ) Additions 1,000 1,948 — — 5,665 — 630 9,243 Principal reductions 52 (703 ) (392 ) — (793 ) (12 ) 17 (1,831 ) Ending balance $ 1,306 $ 2,713 $ 4,225 $ — $ 6,029 $ 32 $ 695 $ 15,000 Allowance for loan loss $ 64 $ 478 $ 170 $ — $ — $ — $ 3 $ 715 |
Credit Risk Rating for Commercial, Construction and Non-consumer Related Loans | The following tables summarize the credit risk ratings for commercial, construction, and other non-consumer related loans for December 31, 2016 and 2015 . The Company did not carry any loans graded as loss at December 31, 2016 or December 31, 2015 . Commercial and Industrial Commercial RE Real Estate Construction and Development Agricultural Total December 31, 2016 (In thousands) Grades 1 and 2 $ 340 $ — $ — $ 75 $ 415 Grade 3 4,823 5,767 — — 10,590 Grades 4 and 5 – pass 34,921 192,699 110,992 56,843 395,455 Grade 6 – special mention 4,416 621 928 — 5,965 Grade 7 – substandard 4,505 1,126 18,767 — 24,398 Grade 8 – doubtful — — — — — Total $ 49,005 $ 200,213 $ 130,687 $ 56,918 $ 436,823 Commercial and Industrial Commercial RE Real Estate Construction and Development Agricultural Total December 31, 2015 (In thousands) Grades 1and 2 $ 519 $ — $ — $ 50 $ 569 Grade 3 5,008 5,964 — — 10,972 Grades 4 and 5 – pass 44,341 173,731 103,607 52,087 373,766 Grade 6 – special mention 946 1,616 — — 2,562 Grade 7 – substandard 5,012 1,243 26,989 — 33,244 Grade 8 – doubtful — — — — — Total $ 55,826 $ 182,554 $ 130,596 $ 52,137 $ 421,113 |
Credit Risk Ratings for Consumer Related Loans and Other Homogenous Loans | The following tables summarize the credit risk ratings for consumer related loans and other homogeneous loans for December 31, 2016 and 2015 (in thousands). December 31, 2016 December 31, 2015 Residential Mortgages Home Improvement and Home Equity Installment Total Residential Mortgages Home Improvement and Home Equity Installment Total Not graded $ 69,955 $ 573 $ 41,855 $ 112,383 $ 47,135 $ 839 $ 23,213 $ 71,187 Pass 15,669 26 2,120 17,815 19,466 28 664 20,158 Special Mention — — — — — — — — Substandard 1,764 — 9 1,773 2,210 — 650 2,860 Doubtful — — 965 965 — — — — Total $ 87,388 $ 599 $ 44,949 $ 132,936 $ 68,811 $ 867 $ 24,527 $ 94,205 |
Allowance for Credit Loses by Loan Category | The following summarizes the activity in the allowance for credit losses by loan category for the years ended December 31, 2016, 2015, and 2014 (in thousands). December 31, 2016 Commercial and Industrial Real Estate Mortgage Real Estate Construction and Development Loans Agricultural Installment & Other Commercial Lease Financing Unallocated Total Beginning balance $ 1,652 $ 1,449 $ 4,629 $ 655 $ 1,258 $ — $ 70 $ 9,713 Provision (recovery of provision) for credit losses 980 (15 ) (1,281 ) 32 (388 ) — 651 (21 ) Charge-offs (849 ) (29 ) — (21 ) — — (24 ) (923 ) Recoveries 60 25 30 — 18 — — 133 Net recoveries(charge-offs) (789 ) (4 ) 30 (21 ) 18 — (24 ) (790 ) Ending balance $ 1,843 $ 1,430 $ 3,378 $ 666 $ 888 $ — $ 697 $ 8,902 Period-end amount allocated to: Loans individually evaluated for impairment 757 603 — — — — — 1,360 Loans collectively evaluated for impairment 1,086 827 3,378 666 888 — 697 7,542 Ending balance $ 1,843 $ 1,430 $ 3,378 $ 666 $ 888 $ — $ 697 $ 8,902 December 31, 2015 Commercial and Industrial Real Estate Mortgage Real Estate Construction and Development Loans Agricultural Installment & Other Commercial Lease Financing Unallocated Total Beginning balance $ 1,218 $ 1,653 $ 6,278 $ 482 $ 293 $ — $ 847 $ 10,771 Provision for credit losses 1,201 (369 ) (1,709 ) 173 1,422 — (759 ) (41 ) Charge-offs (1,397 ) — — — (467 ) — (22 ) (1,886 ) Recoveries 630 165 60 0 10 — 4 869 Net recoveries (charge-offs) (767 ) 165 60 0 (457 ) — (18 ) (1,017 ) Ending balance $ 1,652 $ 1,449 $ 4,629 $ 655 $ 1,258 $ — $ 70 $ 9,713 Period-end amount allocated to: Loans individually evaluated for impairment 530 635 1,282 — 650 — — 3,097 Loans collectively evaluated for impairment 1,122 814 3,347 655 608 — 70 6,616 Ending balance $ 1,652 $ 1,449 $ 4,629 $ 655 $ 1,258 $ — $ 70 $ 9,713 December 31, 2014 Commercial and Industrial Real Estate Mortgage Real Estate Construction and Development Loans Agricultural Installment & Other Commercial Lease Financing Unallocated Total Beginning balance $ 2,340 $ 1,862 $ 5,533 $ 583 $ 275 $ — $ 395 $ 10,988 Provision for credit losses (1,129 ) (89 ) 97 (106 ) (40 ) (46 ) 468 (845 ) Charge-offs (318 ) (140 ) (60 ) — — — (16 ) (534 ) Recoveries 325 20 708 5 58 46 — 1,162 Net recoveries (charge-offs) 7 (120 ) 648 5 58 46 (16 ) 628 Ending balance $ 1,218 $ 1,653 $ 6,278 $ 482 $ 293 $ — $ 847 $ 10,771 Period-end amount allocated to: Loans individually evaluated for impairment 64 648 — — 3 — — 715 Loans collectively evaluated for impairment 1,154 1,005 6,278 482 290 — 847 10,056 Ending balance $ 1,218 $ 1,653 $ 6,278 $ 482 $ 293 $ — $ 847 $ 10,771 |
Summarized Loan Balances | The following summarizes information with respect to the loan balances at December 31, 2016, 2015, and 2014 . December 31, 2016 Loans Loans Total Loans (In thousands) Commercial and Business Loans $ 4,653 $ 42,811 $ 47,464 Government Program Loans 356 1,185 1,541 Total Commercial and Industrial 5,009 43,996 49,005 Commercial Real Estate Loans 1,456 198,757 200,213 Residential Mortgage Loans 2,475 84,913 87,388 Home Improvement and Home Equity Loans — 599 599 Total Real Estate Mortgage 3,931 284,269 288,200 Real Estate Construction and Development Loans 6,274 124,413 130,687 Agricultural Loans — 56,918 56,918 Installment Loans 965 43,984 44,949 Total Loans $ 16,179 $ 553,580 $ 569,759 December 31, 2015 Loans Loans Total Loans (In thousands) Commercial and Business Loans $ 4,874 $ 49,629 $ 54,503 Government Program Loans 327 996 1,323 Total Commercial and Industrial 5,201 50,625 55,826 Commercial Real Estate Loans 1,243 181,311 182,554 Residential Mortgage Loans 4,050 64,761 68,811 Home Improvement and Home Equity Loans — 867 867 Total Real Estate Mortgage 5,293 246,939 252,232 Real Estate Construction and Development Loans 12,519 118,077 130,596 Agricultural Loans 16 52,121 52,137 Installment Loans 650 23,877 24,527 Total Loans $ 23,679 $ 491,639 $ 515,318 December 31, 2014 Loans Loans Total Loans (In thousands) Commercial and Business Loans $ 1,000 $ 59,422 $ 60,422 Government Program Loans 421 1,526 1,947 Total Commercial and Industrial 1,421 60,948 62,369 Commercial Real Estate Loans 3,145 151,527 154,672 Residential Mortgage Loans 4,326 54,769 59,095 Home Improvement and Home Equity Loans 42 1,068 1,110 Total Real Estate Mortgage 7,513 207,364 214,877 Real Estate Construction and Development Loans 6,371 130,787 137,158 Agricultural Loans 32 31,681 31,713 Installment Loans 700 11,102 11,802 Total Loans $ 16,037 $ 441,882 $ 457,919 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | The components of premises and equipment are as follows: (In thousands) December 31, 2016 December 31, 2015 Land $ 968 $ 968 Buildings and improvements 14,841 14,791 Furniture and equipment 9,501 8,496 25,310 24,255 Less accumulated depreciation and amortization (14,865 ) (13,455 ) Total premises and equipment $ 10,445 $ 10,800 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deposits [Abstract] | |
Deposits Summary | Deposits include the following: (In thousands) December 31, 2016 December 31, 2015 Noninterest-bearing deposits $ 262,697 $ 262,168 Interest-bearing deposits: NOW and money market accounts 235,873 226,886 Savings accounts 75,068 63,592 Time deposits: Under $250,000 87,419 58,122 $250,000 and over 15,572 11,037 Total interest-bearing deposits 413,932 359,637 Total deposits $ 676,629 $ 621,805 |
Maturities of Certificates of Deposits and Other Time Deposits | At December 31, 2016 , the scheduled maturities of all certificates of deposit and other time deposits are as follows: (In thousands) December 31, 2016 One year or less $ 91,320 More than one year, but less than or equal to two years 9,214 More than two years, but less than or equal to three years 1,681 More than three years, but less than or equal to four years 348 More than four years, but less than or equal to five years 428 More than five years — $ 102,991 |
Taxes on Income (Tables)
Taxes on Income (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Deferred Tax Assets and Liabilities | The tax effects of significant items comprising the Company’s net deferred tax assets (liabilities) are as follows: December 31, (In thousands) 2016 2015 Deferred tax assets: Credit losses not currently deductible $ 4,151 $ 4,489 Deferred compensation 1,782 1,891 Net operating losses — 459 Depreciation 51 338 Accrued reserves 200 73 Write-down on other real estate owned 534 534 Unrealized gain on AFS & retirement obligation 415 147 Interest on nonaccrual loans 36 36 Capitalized OREO expenses — 826 Other 1,897 2,196 Total deferred tax assets 9,066 10,989 Deferred tax liabilities: State Tax (1,087 ) (1,281 ) FHLB dividend (65 ) (65 ) Loss on limited partnership investment (1,222 ) (1,286 ) Deferred gain ASC 825 – fair value option (1,657 ) (1,890 ) Fair value adjustments for purchase accounting (139 ) (139 ) Deferred loan costs (1,318 ) (868 ) Prepaid expenses (280 ) (232 ) Total deferred tax liabilities (5,768 ) (5,761 ) Net deferred tax assets $ 3,298 $ 5,228 |
Income Taxes | Income tax expense for the years ended December 31, consist of the following: (In thousands) 2016 Federal State Total Current $ 2,642 $ 28 $ 2,670 Deferred 941 1,258 2,199 $ 3,583 $ 1,286 $ 4,869 2015 Current $ 2,847 $ 10 $ 2,857 Deferred 465 1,175 1,640 $ 3,312 $ 1,185 $ 4,497 2014 Current $ 1,129 $ (1,753 ) $ (624 ) Deferred 1,994 2,822 4,816 $ 3,123 $ 1,069 $ 4,192 |
Effective Income Tax Rate Reconciliation | A reconciliation of the statutory federal income tax rate to the effective income tax rate is as follows: Year Ended December 31, 2016 2015 2014 Statutory federal income tax rate 34.0 % 34.0 % 34.0 % State franchise tax, net of federal income tax benefit 6.9 6.9 6.8 Other (1.2 ) (1.1 ) (0.5 ) 39.7 % 39.8 % 40.3 % |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Options Activity | A summary of the status of the Company's stock option plan and changes during the year are presented below: Shares (a) Weighted Average Exercise Price Options outstanding December 31, 2015 120,635 $ 9.02 Granted during the year — — Exercised during the year 2,513 2.57 Forfeited during the year 81,350 12.25 Options outstanding December 31, 2016 36,772 $ 3.87 (a) Options have been adjusted for stock dividends A summary of the status of the Company's restricted stock and changes during the year are presented below: Shares (a) Weighted Average Grant-Date Fair Value Non-vested awards at December 31, 2015 14,870 $ 5.18 Granted during the year — Vested during the year 2,974 5.18 Canceled during the year — — Non-vested awards at December 31, 2016 11,896 $ 5.18 |
Intrinsic Value of Stock Options Exercised | December 31, 2016 December 31, 2015 December 31, 2014 Weighted average grant-date fair value of stock options granted $ — $ — $ 3.33 Total fair value of stock options vested $ 19,650 $ 19,640 $ 31,440 Total intrinsic value of stock options exercised $ 4,500 $ — $ 39,711 |
Stock Options Valuation Assumptions | The assumptions used for the 2016 , 2015 , and 2014 awards are as follows: Year Ended Year Ended Year Ended December 31, 2016 December 31, 2015 December 31, 2014 Risk Free Interest Rate —% —% 1.70% Expected Dividend Yield —% —% —% Expected Life in Years 0 years 0 years 5.5 years Expected Price Volatility —% —% 67.02% |
Commitments and Contingent Li37
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Rental Payments for Operating Leases | Future minimum rental commitments under existing non-cancelable leases as of December 31, 2016 are as follows: (In thousands): 2017 $ 695 2018 655 2019 479 2020 427 2021 230 Thereafter 829 $ 3,315 |
Financial Instruments Off-balance Sheet Risks | The credit risk associated with these instruments is essentially the same as that involved in extending credit to customers and is represented by the contractual amount indicated in the table below: Contractual amount – December 31, (In thousands) 2016 2015 Commitments to extend credit $ 120,485 $ 107,084 Standby letters of credit 1,201 3,295 |
Fair Value Measurements and D38
Fair Value Measurements and Disclosure (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | The table below is a summary of fair value estimates for financial instruments and the level of the fair value hierarchy within which the fair value measurements are categorized at the periods indicated: December 31, 2016 (In thousands) Carrying Amount Estimated Fair Value Quoted Prices In Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Financial Assets: Cash and cash equivalents $ 113,032 $ 113,032 $ 113,032 $ — $ — Interest-bearing deposits 650 650 — 650 — Investment securities 57,491 57,491 3,716 53,775 — Loans 561,932 557,914 — — 557,914 Accrued interest receivable 3,895 3,895 — 3,895 — Financial Liabilities: Deposits: Noninterest-bearing 262,697 262,697 262,697 — — NOW and money market 235,873 235,873 235,873 — — Savings 75,068 75,068 75,068 — — Time deposits 102,991 702,743 — — 702,743 Total deposits 676,629 1,276,381 573,638 — 702,743 Junior subordinated debt 8,832 8,832 — — 8,832 Accrued interest payable 76 76 — 76 — December 31, 2015 (In thousands) Carrying Amount Estimated Fair Value Quoted Prices In Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Financial Assets: Cash and cash equivalents $ 125,751 $ 125,751 $ 125,751 $ — $ — Interest-bearing deposits 1,528 1,528 — 1,528 — Investment securities 30,893 30,893 3,812 27,081 — Loans 505,663 503,047 — — 503,047 Accrued interest receivable 2,220 2,220 — 2,220 — Financial Liabilities: Deposits: Noninterest-bearing 262,168 262,168 262,168 — — NOW and money market 226,886 226,886 226,886 — — Savings 63,592 63,592 63,592 — — Time deposits 69,159 69,031 — — 69,031 Total deposits 621,805 621,677 552,646 — 69,031 Junior subordinated debt 8,300 8,300 — — 8,300 Accrued interest payable 29 29 — 29 — |
Assets and Liabilities Measured at Fair Value on Recurring and Non-recurring Basis | The following tables summarize the Company’s assets and liabilities that were measured at fair value on a recurring and non-recurring basis as of December 31, 2016 (in 000’s): Description of Assets December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) AFS Securities (2): U.S. Government agencies $ 23,203 $ — $ 23,203 $ — U.S Govt collateralized mortgage obligations 30,572 — 30,572 — Mutual Funds 3,716 3,716 — — Total AFS securities 57,491 3,716 53,775 — Impaired Loans (1): Commercial and industrial 301 — — 301 Real estate mortgage — — — — RE construction & development — — — — Agricultural — — — — Installment/Other — — — — Total impaired loans 301 — — 301 Other real estate owned (1) — — — — Total $ 57,792 $ 3,716 $ 53,775 $ 301 Description of Liabilities December 31, 2016 Quoted Prices (Level 1) Significant (Level 2) Significant (Level 3) Junior subordinated debt (2) $ 8,832 $ — $ — $ 8,832 Total $ 8,832 $ — $ — $ 8,832 (1) Nonrecurring (2) Recurring The following tables summarize the Company’s assets and liabilities that were measured at fair value on a recurring and non-recurring basis as of December 31, 2015 (in 000’s): Description of Assets December 31, 2015 Quoted Prices (Level 1) Significant (Level 2) Significant (Level 3) AFS Securities (2): U.S. Government agencies $ 10,123 $ — $ 10,123 $ — U.S Govt collateralized mortgage obligations 16,958 — 16,958 — Mutual Funds 3,812 3,812 — — Total AFS securities 30,893 3,812 27,081 — Impaired Loans (1): Commercial and industrial — — — — Real estate mortgage — — — — RE construction & development — — — — Agricultural — — — — Installment/Other — — — — Total impaired loans — — — — Other real estate owned (1) 9,208 — — 9,208 Total $ 40,101 $ 3,812 $ 27,081 $ 9,208 Description of Liabilities December 31, 2015 Quoted Prices (Level 1) Significant (Level 2) Significant (Level 3) Junior subordinated debt (2) $ 8,300 $ — $ — $ 8,300 Total $ 8,300 $ — $ — $ 8,300 (1) Nonrecurring (2) Recurring |
Quantitative information about fair value measurements on Company's assets | The following table presents quantitative information about Level 3 fair value measurements for the Company's assets measured at fair value on a non-recurring basis at December 31, 2016 and December 31, 2015 (in 000's). December 31, 2016 Financial Instrument Fair Value Valuation Technique Unobservable Input Range, Weighted Average Impaired Loans: Commercial and industrial $ 301 Sales Comparison Approach Adjustment for difference between comparable sales 7%-29%, 19.1% December 31, 2015 Financial Instrument Fair Value Valuation Technique Unobservable Input Range, Weighted Average Other Real Estate Owned Other Real Estate Owned $ 9,208 Market Approach Adjustment for negotiated sales contract 2% |
Significant Unobservable Inputs (Level 3) on a Recurring Basis | The following tables provide a reconciliation of liabilities at fair value using significant unobservable inputs (Level 3) on a recurring basis during the period (in 000’s): December 31, 2016 December 31, 2015 December 31, 2014 Reconciliation of Liabilities: Junior Subordinated Debt Junior Subordinated Debt Junior Subordinated Debt Beginning balance $ 8,300 $ 10,115 $ 11,125 Total losses included in earnings (518 ) (73 ) (102 ) Canceled debt — (1,122 ) — Gain on redemption of liability — 78 — Capitalized interest 1,050 (698 ) (908 ) Ending balance $ 8,832 $ 8,300 $ 10,115 The amount of total losses for the period included in earnings attributable to the change in unrealized gains or losses relating to liabilities still held at the reporting date $ (518 ) $ (73 ) $ (102 ) |
Description of the Valuation Technique, Unobservable Input, and Qualitative Information about the Unobservable Inputs for the Company's Assets and Liabilities Classified as Level 3 and Measured at Fair Value on a Recurring Basis | The following table provides a description of the valuation technique, unobservable input, and qualitative information about the unobservable inputs for the Company’s liabilities classified as Level 3 and measured at fair value on a recurring basis at December 31, 2016 and 2015 : December 31, 2016 December 31, 2015 Financial Instrument Valuation Technique Unobservable Input Weighted Average Financial Instrument Valuation Technique Unobservable Input Weighted Average Subordinated Debt Discounted cash flow Discount Rate 6.46% Subordinated Debt Discounted cash flow Discount Rate 6.82% |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Banking and Thrift [Abstract] | |
Capital Requirements under Banking Regulations | The following table shows the Company’s and the Bank’s regulatory capital and regulatory capital ratios at December 31, 2016 and 2015 , as compared to the applicable capital adequacy guidelines: To Be Well Capitalized Under Actual For Capital Adequacy Purposes Prompt Corrective Action Provisions (In thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2016 (Company): Total Capital (to Risk Weighted Assets) $ 108,868 17.26 % $ 50,454 8.00 % N/A N/A Tier 1 Capital (to Risk Weighted Assets) 100,968 16.01 % 37,840 6.00 % N/A N/A Common Equity Tier 1 (to Risk Weighted Assets) 92,600 14.68 % 28,380 4.50 % N/A N/A Tier 1 Leverage ( to Average Assets) 100,968 12.97 % 31,149 4.00 % N/A N/A As of December 31, 2016 (Bank): Total Capital (to Risk Weighted Assets) $ 108,400 17.19 % $ 50,454 8.00 % $ 63,068 10.00 % Tier 1 Capital (to Risk Weighted Assets) 100,500 15.94 % 37,840 6.00 % 50,454 8.00 % Common Equity Tier 1 (to Risk Weighted Assets) 100,500 15.94 % 30,630 4.50 % 40,994 6.50 % Tier 1 Leverage ( to Average Assets) 100,500 12.99 % 30,956 4.00 % 38,695 5.00 % As of December 31, 2015 (Company): Total Capital (to Risk Weighted Assets) $ 100,659 16.65 % $ 48,358 8.00 % N/A N/A Tier 1 Capital (to Risk Weighted Assets) 93,073 15.40 % 36,269 6.00 % N/A N/A Common Equity Tier 1 (to Risk Weighted Assets) 85,237 14.10 % 27,201 4.50 % N/A N/A Tier 1 Leverage ( to Average Assets) 93,073 12.95 % 28,747 4.00 % N/A N/A As of December 31, 2015 (Bank): Total Capital (to Risk Weighted Assets) $ 100,544 16.69 % $ 48,204 8.00 % $ 71,870 10.00 % Tier 1 Capital (to Risk Weighted Assets) 92,981 15.43 % 36,153 6.00 % 57,496 8.00 % Common Equity Tier 1 (to Risk Weighted Assets) 92,981 15.43 % 27,115 4.50 % 46,716 6.50 % Tier 1 Leverage ( to Average Assets) 92,981 12.94 % 28,748 4.00 % 35,935 5.00 % As of December 31, 2014 (Company): Total Capital (to Risk Weighted Assets) $ 91,935 17.29 % $ 42,536 8.00 % N/A N/A Tier 1 Capital (to Risk Weighted Assets) 85,234 16.03 % 21,268 4.00 % N/A N/A Tier 1 Capital (to Average Assets) 85,234 12.49 % 27,295 4.00 % N/A N/A As of December 31, 2014 (Bank): Total Capital (to Risk Weighted Assets) $ 89,889 16.91 % $ 42,536 8.00 % $ 53,170 10.00 % Tier 1 Capital (to Risk Weighted Assets) 83,188 15.65 % 21,268 4.00 % 31,902 6.00 % Tier 1 Capital ( to Average Assets) 83,188 12.25 % 27,164 4.00 % 33,955 5.00 % |
Supplemental Cash Flow Disclo40
Supplemental Cash Flow Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Disclosures | Year Ended December 31, (In thousands) 2016 2015 2014 Cash paid during the period for: Interest $ 1,362 $ 1,243 $ 2,462 Income Taxes 1,710 3,080 — Noncash activities: Loans transferred to foreclosed property — 226 1,308 OREO financed 3,766 — — Sale of limited partnership interest financed — — 3,000 Unrealized (losses) gains on securities (648 ) (265 ) 18 Unrealized gains (losses) on unrecognized post retirement costs (22 ) 224 (113 ) |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Computation of Income Per Share | The following table provides a reconciliation of the numerator and the denominator of the basic EPS computation with the numerator and the denominator of the diluted EPS computation. (Weighted average shares have been adjusted to give retroactive recognition for the 1% stock dividend for each of the quarters since the third quarter ended September 30, 2008): Year Ended December 31, (In thousands, except earnings per share data) 2016 2015 2014 Net income available to common shareholders $ 7,385 $ 6,810 $ 6,216 Weighted average shares outstanding 16,703,672 16,702,781 16,686,896 Add: dilutive effect of stock options 7,136 2,156 5,750 Weighted average shares outstanding adjusted for potential dilution 16,710,808 16,704,937 16,692,646 Basic earnings per share $ 0.44 $ 0.41 $ 0.37 Diluted earnings per share $ 0.44 $ 0.41 $ 0.37 Anti-dilutive shares excluded from earnings per share calculation 52,000 136,000 154,000 |
Parent Company Only Financial42
Parent Company Only Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Statements of Parent | The following are the condensed financial statements of United Security Bancshares and should be read in conjunction with the consolidated financial statements: United Security Bancshares – (parent only) Balance Sheets - December 31, 2016 and 2015 (In thousands) 2016 2015 Assets Cash and equivalents $ 148 $ 140 Investment in bank subsidiary 104,554 97,379 Other assets 2,525 2,326 Total assets 107,227 99,845 Liabilities & Shareholders' Equity Liabilities: Junior subordinated debt securities (at fair value) 8,832 8,300 Deferred taxes 1,741 1,910 Total liabilities 10,573 10,210 Shareholders' Equity: Common stock, no par value 20,000,000 shares authorized, 16,705,294 and 16,051,406 issued and outstanding, at December 31, 2016 and December 31, 2015, respectively 56,557 52,572 Retained earnings 40,701 37,265 Accumulated other comprehensive loss (604 ) (202 ) Total shareholders' equity 96,654 89,635 Total liabilities and shareholders' equity $ 107,227 $ 99,845 United Security Bancshares – (parent only) Year ended December 31, Income Statements (In thousands) 2016 2015 2014 Income Loss on fair value of financial liability $ (518 ) $ (73 ) $ (102 ) Gain on redemption of JR subordinated debentures — 78 — Dividends from subsidiary 424 2,416 1,519 Total income (94 ) 2,421 1,417 Expense Interest expense 240 225 241 Other expense 241 256 101 Total expense 481 481 342 (Loss) Income before taxes and equity in undistributed income of subsidiary (575 ) 1,940 1,075 Income tax benefit (411 ) (196 ) (182 ) Undistributed income of subsidiary 7,549 4,674 4,959 Net Income $ 7,385 $ 6,810 $ 6,216 United Security Bancshares – (parent only) Year ended December 31, Statement of Cash Flows (In thousands) 2016 2015 2014 Cash Flows From Operating Activities Net income $ 7,385 $ 6,810 $ 6,216 Adjustments to reconcile net income to cash provided by operating activities: Equity in undistributed income of subsidiary (7,549 ) (4,674 ) (4,959 ) Provision for deferred income taxes (169 ) (518 ) (42 ) Loss on fair value option of financial liability 518 73 102 Gain on redemption of junior subordinated debentures — (78 ) — (Increase) decrease in income tax receivable (198 ) 117 (140 ) Net change in other assets/liabilities 15 (14 ) (1,114 ) Net cash provided by operating activities 2 1,716 63 Cash Flows From Financing Activities Proceeds from exercise of stock options 6 — 95 Redemption of junior subordinated debenture — (1,800 ) — Net cash provided by financing activities 6 (1,800 ) 95 Net increase (decrease) increase in cash and cash equivalents 8 (84 ) 158 Cash and cash equivalents at beginning of year 140 224 66 Cash and cash equivalents at end of year $ 148 $ 140 $ 224 |
Organization and Summary of S43
Organization and Summary of Significant Accounting and Reporting Policies (Details) | 1 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2015USD ($) | Aug. 31, 2015USD ($) | Dec. 31, 2016USD ($)segmentBranchDepartmentoffice | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Jul. 31, 2013USD ($) | Sep. 30, 2009USD ($) | Jul. 31, 2007USD ($) | |
Basis of Presentation [Abstract] | ||||||||
Number of operating segments | segment | 1 | |||||||
Debt Instrument [Line Items] | ||||||||
Amount issued in trust preferred securities | $ 12,000,000 | $ 15,000,000 | $ 15,000,000 | |||||
Gain on redemption of JR subordinated debentures | 0 | $ 78,000 | $ 0 | |||||
Nature of Operations [Abstract] | ||||||||
Real estate secured loans | $ 133,000,000 | |||||||
Number of branches | Branch | 11 | |||||||
Number of construction lending offices | office | 1 | |||||||
Number of financial services departments | Department | 1 | |||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||
Finite-lived intangible assets, net | $ 0 | |||||||
Period of estimated intangible amortization expense | 5 years | |||||||
Goodwill | $ 4,488,000 | 4,488,000 | ||||||
Advertising Costs [Abstract] | ||||||||
Advertising expense | 126,000 | 127,000 | 123,000 | |||||
Stock Based Compensation [Abstract] | ||||||||
Share-based compensation | 30,000 | 26,000 | $ 28,000 | |||||
Taft National Bank | ||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||
Goodwill | 1,600,000 | |||||||
Legacy Bank | ||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||
Goodwill | $ 2,900,000 | |||||||
Buildings | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Estimated useful life | 31 years | |||||||
Furniture and equipment | Minimum | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Estimated useful life | 3 years | |||||||
Furniture and equipment | Maximum | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Estimated useful life | 7 years | |||||||
Junior Subordinated Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Amount issued in trust preferred securities | $ 12,000,000 | $ 15,000,000 | ||||||
Fair value discount (percentage) | 40.00% | |||||||
Gain on redemption of JR subordinated debentures | $ 78,000 | |||||||
Junior Subordinated Debt | United Security Bank | ||||||||
Debt Instrument [Line Items] | ||||||||
Amount issued in trust preferred securities | $ 3,000,000 | |||||||
Core Deposits | ||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||
Impairment loss on intangible assets | $ 0 | $ 0 |
Investment Securities (Details)
Investment Securities (Details) | 12 Months Ended | ||
Dec. 31, 2016USD ($)segmentsecurity | Dec. 31, 2015USD ($)security | Dec. 31, 2014USD ($) | |
Comparison of amortized cost and fair value of securities available for sale [Abstract] | |||
Amortized Cost | $ 57,859,000 | $ 30,613,000 | |
Gross Unrealized Gains | 387,000 | 628,000 | |
Gross Unrealized Losses | (755,000) | (348,000) | |
Fair Value (Carrying Amount) | 57,491,000 | 30,893,000 | |
Gross realized gains (losses), sale proceeds | 0 | 0 | $ 0 |
Realized losses on sales of available-for-sale securities | 0 | 0 | 0 |
Realized gains on sales of available-for-sale securities | 0 | 0 | 0 |
Other-than-temporary impairment losses | 0 | 0 | $ 0 |
Amortized Cost [Abstract] | |||
Due in one year or less | 4,000,000 | ||
Due after one year through five years | 0 | ||
Due after five years through ten years | 847,000 | ||
Due after ten years | 22,145,000 | ||
U.S. Government sponsored entities & agencies collateralized by mortgage obligations | 30,867,000 | ||
Amortized Cost | 57,859,000 | 30,613,000 | |
Fair Value (Carrying Amount) [Abstract] | |||
Due in one year or less | 3,716,000 | ||
Due after one year through five years | 0 | ||
Due after five years through ten years | 861,000 | ||
Due after ten years | 22,342,000 | ||
U.S. Government sponsored entities & agencies collateralized by mortgage obligations | 30,572,000 | ||
Fair Value (Carrying Amount) | 57,491,000 | 30,893,000 | |
Fair value of available-for-sale securities pledged as collateral for FHLB borrowings | 19,803,388 | 16,670,290 | |
Trading securities | 0 | 0 | |
Held-to-maturity Securities | 0 | 0 | |
Summarizes temporarily impaired investment securities [Abstract] | |||
Less than 12 Months, Fair Value (Carrying Amount) | 38,185,000 | 9,992,000 | |
Less than 12, Unrealized Losses | (471,000) | (160,000) | |
12 Months or More, Fair Value (Carrying Amount) | 3,716,000 | 3,812,000 | |
12 Months or More, Unrealized Losses | (284,000) | (188,000) | |
Total Fair Value (Carrying Amount) | 41,901,000 | 13,804,000 | |
Total Unrealized Losses | $ (755,000) | (348,000) | |
Number of general segments for the segregation of portfolio | segment | 2 | ||
U.S. Government agencies | |||
Comparison of amortized cost and fair value of securities available for sale [Abstract] | |||
Amortized Cost | $ 22,992,000 | 9,778,000 | |
Gross Unrealized Gains | 280,000 | 453,000 | |
Gross Unrealized Losses | (69,000) | (108,000) | |
Fair Value (Carrying Amount) | 23,203,000 | 10,123,000 | |
Amortized Cost [Abstract] | |||
Amortized Cost | 22,992,000 | 9,778,000 | |
Summarizes temporarily impaired investment securities [Abstract] | |||
Less than 12 Months, Fair Value (Carrying Amount) | 12,281,000 | 79,000 | |
Less than 12, Unrealized Losses | (69,000) | (108,000) | |
12 Months or More, Fair Value (Carrying Amount) | 0 | 0 | |
12 Months or More, Unrealized Losses | 0 | 0 | |
Total Fair Value (Carrying Amount) | 12,281,000 | 79,000 | |
Total Unrealized Losses | $ (69,000) | $ (108,000) | |
Number of impaired securities | security | 4 | 1 | |
U.S. Government sponsored entities & agencies collateralized by mortgage obligations | |||
Comparison of amortized cost and fair value of securities available for sale [Abstract] | |||
Amortized Cost | $ 30,867,000 | $ 16,835,000 | |
Gross Unrealized Gains | 107,000 | 175,000 | |
Gross Unrealized Losses | (402,000) | (52,000) | |
Fair Value (Carrying Amount) | 30,572,000 | 16,958,000 | |
Amortized Cost [Abstract] | |||
Amortized Cost | 30,867,000 | 16,835,000 | |
Summarizes temporarily impaired investment securities [Abstract] | |||
Less than 12 Months, Fair Value (Carrying Amount) | 25,904,000 | 9,913,000 | |
Less than 12, Unrealized Losses | (402,000) | (52,000) | |
12 Months or More, Fair Value (Carrying Amount) | 0 | 0 | |
12 Months or More, Unrealized Losses | 0 | 0 | |
Total Fair Value (Carrying Amount) | 25,904,000 | 9,913,000 | |
Total Unrealized Losses | $ (402,000) | $ (52,000) | |
Number of impaired securities | security | 11 | 5 | |
Mutual Funds | |||
Comparison of amortized cost and fair value of securities available for sale [Abstract] | |||
Amortized Cost | $ 4,000,000 | $ 4,000,000 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | (284,000) | (188,000) | |
Fair Value (Carrying Amount) | 3,716,000 | 3,812,000 | |
Amortized Cost [Abstract] | |||
Amortized Cost | 4,000,000 | 4,000,000 | |
Summarizes temporarily impaired investment securities [Abstract] | |||
Less than 12 Months, Fair Value (Carrying Amount) | 0 | 0 | |
Less than 12, Unrealized Losses | 0 | 0 | |
12 Months or More, Fair Value (Carrying Amount) | 3,716,000 | 3,812,000 | |
12 Months or More, Unrealized Losses | (284,000) | (188,000) | |
Total Fair Value (Carrying Amount) | 3,716,000 | 3,812,000 | |
Total Unrealized Losses | $ (284,000) | (188,000) | |
Number of impaired securities | security | 1 | ||
Carrying Amount | |||
Fair Value (Carrying Amount) [Abstract] | |||
Fair value of available-for-sale securities pledged as collateral for FHLB borrowings | $ 19,653,625 | $ 16,253,074 |
Loans (Details)
Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 569,759 | $ 515,318 | $ 457,919 |
Installment loans, consumer, student | 38,514 | ||
Accrued interest | 3,895 | 2,220 | |
Loans to directors, officers, principal shareholders and their affiliates [Roll Forward] | |||
Aggregate amount outstanding, beginning of year | 3,754 | 2,120 | 2,916 |
New loans or advances during year | 3,788 | 3,946 | 796 |
Repayments during year | (1,704) | (2,312) | (1,592) |
Aggregate amount outstanding, end of year | 5,838 | 3,754 | 2,120 |
Loan commitments, end of year | 4,891 | 7,431 | $ 3,761 |
Commitments to extend credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financial instrument commitments | 120,485 | 107,084 | |
Standby letters of credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financial instrument commitments | $ 1,201 | 3,295 | |
Minimum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Maturity period | 3 years | ||
Maximum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Maturity period | 15 years | ||
Commercial and Business loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 47,464 | 54,503 | |
Government Program Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 1,541 | 1,323 | |
Total Commercial and Industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 49,005 | 55,826 | |
Percentage of total loans (percent) | 8.60% | ||
Commercial Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 200,213 | 182,554 | |
Residential Mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 87,388 | 68,811 | |
Home Improvement and Home Equity loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 599 | 867 | |
Total Real Estate Mortgage | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 288,200 | 252,232 | |
Percentage of total loans (percent) | 50.60% | ||
Real Estate Construction and Development | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 130,687 | 130,596 | |
Percentage of total loans (percent) | 22.90% | ||
Agricultural | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 56,918 | 52,137 | |
Percentage of total loans (percent) | 10.00% | ||
Installment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 44,949 | $ 24,527 | |
Percentage of total loans (percent) | 7.90% | ||
Student loan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accrued interest | $ 1,850 |
Loans, Part II (Details)
Loans, Part II (Details) | 12 Months Ended | ||
Dec. 31, 2016USD ($)payment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | $ 3,103,000 | $ 2,583,000 | |
Current Loans | 566,656,000 | 512,735,000 | |
Total Loans | 569,759,000 | 515,318,000 | $ 457,919,000 |
Accruing Loans 90 or More Days Past Due | $ 1,250,000 | 0 | |
Nonaccrual loans balances [Abstract] | |||
Minimum period of default | 90 days | ||
Number of monthly payments to demonstrate repayment ability | payment | 6 | ||
Total Loans | $ 7,264,000 | 8,193,000 | |
Remaining undisbursed commitments, loan funds | 0 | 0 | |
Commercial and Business loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 432,000 | 0 | |
Current Loans | 48,009,000 | 54,503,000 | |
Total Loans | 48,441,000 | 54,503,000 | |
Accruing Loans 90 or More Days Past Due | 0 | 0 | |
Nonaccrual loans balances [Abstract] | |||
Total Loans | 275,000 | 0 | |
Government Program Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 290,000 | 13,000 | |
Current Loans | 1,251,000 | 1,310,000 | |
Total Loans | 1,541,000 | 1,323,000 | |
Accruing Loans 90 or More Days Past Due | 0 | 0 | |
Nonaccrual loans balances [Abstract] | |||
Total Loans | 290,000 | 328,000 | |
Total Commercial and Industrial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 722,000 | 13,000 | |
Current Loans | 49,260,000 | 55,813,000 | |
Total Loans | 49,982,000 | 55,826,000 | |
Accruing Loans 90 or More Days Past Due | 0 | 0 | |
Nonaccrual loans balances [Abstract] | |||
Total Loans | 565,000 | 328,000 | |
Commercial Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 721,000 | |
Current Loans | 199,810,000 | 181,833,000 | |
Total Loans | 199,810,000 | 182,554,000 | |
Accruing Loans 90 or More Days Past Due | 0 | 0 | |
Nonaccrual loans balances [Abstract] | |||
Total Loans | 1,126,000 | 1,243,000 | |
Residential Mortgages | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 454,000 | |
Current Loans | 87,388,000 | 68,357,000 | |
Total Loans | 87,388,000 | 68,811,000 | |
Accruing Loans 90 or More Days Past Due | 0 | 0 | |
Nonaccrual loans balances [Abstract] | |||
Total Loans | 0 | 392,000 | |
Home Improvement and Home Equity loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 39,000 | |
Current Loans | 599,000 | 828,000 | |
Total Loans | 599,000 | 867,000 | |
Accruing Loans 90 or More Days Past Due | 0 | 0 | |
Nonaccrual loans balances [Abstract] | |||
Total Loans | 0 | 0 | |
Total Real Estate Mortgage | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 1,214,000 | |
Current Loans | 287,797,000 | 251,018,000 | |
Total Loans | 287,797,000 | 252,232,000 | |
Accruing Loans 90 or More Days Past Due | 0 | 0 | |
Nonaccrual loans balances [Abstract] | |||
Total Loans | 1,126,000 | 1,635,000 | |
Real Estate Construction and Development | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 1,416,000 | 706,000 | |
Current Loans | 128,697,000 | 129,890,000 | |
Total Loans | 130,113,000 | 130,596,000 | |
Accruing Loans 90 or More Days Past Due | 1,250,000 | 0 | |
Nonaccrual loans balances [Abstract] | |||
Total Loans | 4,608,000 | 5,580,000 | |
Agricultural Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Current Loans | 56,918,000 | 52,137,000 | |
Total Loans | 56,918,000 | 52,137,000 | |
Accruing Loans 90 or More Days Past Due | 0 | 0 | |
Nonaccrual loans balances [Abstract] | |||
Total Loans | 0 | 0 | |
Consumer Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 965,000 | 650,000 | |
Current Loans | 43,785,000 | 23,657,000 | |
Total Loans | 44,750,000 | 24,307,000 | |
Accruing Loans 90 or More Days Past Due | 0 | 0 | |
Nonaccrual loans balances [Abstract] | |||
Total Loans | 965,000 | 650,000 | |
Overdraft protection Lines | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Current Loans | 48,000 | 61,000 | |
Total Loans | 48,000 | 61,000 | |
Accruing Loans 90 or More Days Past Due | 0 | 0 | |
Overdrafts | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Current Loans | 151,000 | 159,000 | |
Total Loans | 151,000 | 159,000 | |
Accruing Loans 90 or More Days Past Due | 0 | 0 | |
Installment | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 965,000 | 650,000 | |
Current Loans | 43,984,000 | 23,877,000 | |
Total Loans | 44,949,000 | 24,527,000 | |
Accruing Loans 90 or More Days Past Due | 0 | 0 | |
Nonaccrual loans balances [Abstract] | |||
Total Loans | 965,000 | 650,000 | |
Financing Receivables, 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 166,000 | 796,000 | |
Financing Receivables, 30 to 59 Days Past Due | Commercial and Business loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Financing Receivables, 30 to 59 Days Past Due | Government Program Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 13,000 | |
Financing Receivables, 30 to 59 Days Past Due | Total Commercial and Industrial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 13,000 | |
Financing Receivables, 30 to 59 Days Past Due | Commercial Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 721,000 | |
Financing Receivables, 30 to 59 Days Past Due | Residential Mortgages | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 62,000 | |
Financing Receivables, 30 to 59 Days Past Due | Home Improvement and Home Equity loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Financing Receivables, 30 to 59 Days Past Due | Total Real Estate Mortgage | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 783,000 | |
Financing Receivables, 30 to 59 Days Past Due | Real Estate Construction and Development | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 166,000 | 0 | |
Financing Receivables, 30 to 59 Days Past Due | Agricultural Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Financing Receivables, 30 to 59 Days Past Due | Consumer Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Financing Receivables, 30 to 59 Days Past Due | Overdraft protection Lines | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Financing Receivables, 30 to 59 Days Past Due | Overdrafts | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Financing Receivables, 30 to 59 Days Past Due | Installment | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Financing Receivables, 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 432,000 | 1,787,000 | |
Financing Receivables, 60 to 89 Days Past Due | Commercial and Business loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 432,000 | 0 | |
Financing Receivables, 60 to 89 Days Past Due | Government Program Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Financing Receivables, 60 to 89 Days Past Due | Total Commercial and Industrial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 432,000 | 0 | |
Financing Receivables, 60 to 89 Days Past Due | Commercial Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Financing Receivables, 60 to 89 Days Past Due | Residential Mortgages | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 392,000 | |
Financing Receivables, 60 to 89 Days Past Due | Home Improvement and Home Equity loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 39,000 | |
Financing Receivables, 60 to 89 Days Past Due | Total Real Estate Mortgage | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 431,000 | |
Financing Receivables, 60 to 89 Days Past Due | Real Estate Construction and Development | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 706,000 | |
Financing Receivables, 60 to 89 Days Past Due | Agricultural Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Financing Receivables, 60 to 89 Days Past Due | Consumer Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 650,000 | |
Financing Receivables, 60 to 89 Days Past Due | Overdraft protection Lines | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Financing Receivables, 60 to 89 Days Past Due | Overdrafts | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Financing Receivables, 60 to 89 Days Past Due | Installment | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 650,000 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 2,505,000 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial and Business loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | Government Program Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 290,000 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | Total Commercial and Industrial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 290,000 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | Residential Mortgages | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | Home Improvement and Home Equity loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | Total Real Estate Mortgage | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | Real Estate Construction and Development | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 1,250,000 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | Agricultural Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | Consumer Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 965,000 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | Overdraft protection Lines | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | Overdrafts | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | Installment | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due Loans | $ 965,000 | $ 0 |
Loans, Part III (Details)
Loans, Part III (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Impaired [Line Items] | |||
Unpaid Contractual Principal Balance | $ 16,144 | $ 23,612 | $ 16,013 |
Recorded Investment With No Allowance | 8,616 | 7,275 | 11,559 |
Recorded Investment With Allowance | 7,563 | 16,404 | 4,478 |
Total Recorded Investment | 16,179 | 23,679 | 16,037 |
Related Allowance | 1,360 | 3,097 | 715 |
Average Recorded Investment | 19,566 | 17,462 | 15,045 |
Interest Recognized | 953 | 1,440 | 794 |
Accrued interest receivable | 35 | 67 | 24 |
Commercial and Business loans | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Contractual Principal Balance | 4,635 | 4,855 | 996 |
Recorded Investment With No Allowance | 495 | 541 | 770 |
Recorded Investment With Allowance | 4,158 | 4,333 | 230 |
Total Recorded Investment | 4,653 | 4,874 | 1,000 |
Related Allowance | 757 | 530 | 64 |
Average Recorded Investment | 5,050 | 2,537 | 847 |
Interest Recognized | 302 | 302 | 76 |
Government Program Loans | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Contractual Principal Balance | 356 | 327 | 421 |
Recorded Investment With No Allowance | 356 | 327 | 421 |
Recorded Investment With Allowance | 0 | 0 | 0 |
Total Recorded Investment | 356 | 327 | 421 |
Related Allowance | 0 | 0 | 0 |
Average Recorded Investment | 372 | 358 | 250 |
Interest Recognized | 20 | 29 | 28 |
Total Commercial and Industrial | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Contractual Principal Balance | 4,991 | 5,182 | 1,417 |
Recorded Investment With No Allowance | 851 | 868 | 1,191 |
Recorded Investment With Allowance | 4,158 | 4,333 | 230 |
Total Recorded Investment | 5,009 | 5,201 | 1,421 |
Related Allowance | 757 | 530 | 64 |
Average Recorded Investment | 5,422 | 2,895 | 1,097 |
Interest Recognized | 322 | 331 | 104 |
Commercial Real Estate | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Contractual Principal Balance | 1,454 | 1,243 | 3,145 |
Recorded Investment With No Allowance | 0 | 0 | 1,794 |
Recorded Investment With Allowance | 1,456 | 1,243 | 1,351 |
Total Recorded Investment | 1,456 | 1,243 | 3,145 |
Related Allowance | 450 | 477 | 478 |
Average Recorded Investment | 1,503 | 1,618 | 5,765 |
Interest Recognized | 89 | 74 | 244 |
Residential Mortgages | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Contractual Principal Balance | 2,467 | 4,032 | 4,315 |
Recorded Investment With No Allowance | 526 | 1,051 | 1,474 |
Recorded Investment With Allowance | 1,949 | 2,999 | 2,852 |
Total Recorded Investment | 2,475 | 4,050 | 4,326 |
Related Allowance | 153 | 158 | 170 |
Average Recorded Investment | 2,874 | 4,092 | 4,564 |
Interest Recognized | 138 | 185 | 188 |
Home Improvement and Home Equity loans | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Contractual Principal Balance | 0 | 0 | 42 |
Recorded Investment With No Allowance | 0 | 0 | 42 |
Recorded Investment With Allowance | 0 | 0 | 0 |
Total Recorded Investment | 0 | 0 | 42 |
Related Allowance | 0 | 0 | 0 |
Average Recorded Investment | 0 | 11 | 11 |
Interest Recognized | 0 | 0 | 3 |
Total Real Estate Mortgage | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Contractual Principal Balance | 3,921 | 5,275 | 7,502 |
Recorded Investment With No Allowance | 526 | 1,051 | 3,310 |
Recorded Investment With Allowance | 3,405 | 4,242 | 4,203 |
Total Recorded Investment | 3,931 | 5,293 | 7,513 |
Related Allowance | 603 | 635 | 648 |
Average Recorded Investment | 4,377 | 5,721 | 10,340 |
Interest Recognized | 227 | 259 | 435 |
Real Estate Construction and Development Loans | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Contractual Principal Balance | 6,267 | 12,489 | 6,367 |
Recorded Investment With No Allowance | 6,274 | 5,340 | 6,371 |
Recorded Investment With Allowance | 0 | 7,179 | 0 |
Total Recorded Investment | 6,274 | 12,519 | 6,371 |
Related Allowance | 0 | 1,282 | 0 |
Average Recorded Investment | 8,794 | 7,781 | 3,362 |
Interest Recognized | 361 | 820 | 209 |
Agricultural Loans | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Contractual Principal Balance | 0 | 16 | 32 |
Recorded Investment With No Allowance | 0 | 16 | 32 |
Recorded Investment With Allowance | 0 | 0 | 0 |
Total Recorded Investment | 0 | 16 | 32 |
Related Allowance | 0 | 0 | 0 |
Average Recorded Investment | 5 | 22 | 37 |
Interest Recognized | 8 | 9 | 9 |
Consumer Loans | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Contractual Principal Balance | 965 | 650 | 695 |
Recorded Investment With No Allowance | 965 | 0 | 655 |
Recorded Investment With Allowance | 0 | 650 | 45 |
Total Recorded Investment | 965 | 650 | 700 |
Related Allowance | 0 | 650 | 3 |
Average Recorded Investment | 968 | 1,043 | 209 |
Interest Recognized | 35 | 21 | 37 |
Overdraft protection Lines | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Contractual Principal Balance | 0 | ||
Recorded Investment With No Allowance | 0 | ||
Recorded Investment With Allowance | 0 | ||
Total Recorded Investment | 0 | ||
Related Allowance | 0 | ||
Average Recorded Investment | 0 | ||
Interest Recognized | 0 | ||
Overdrafts | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Contractual Principal Balance | 0 | ||
Recorded Investment With No Allowance | 0 | ||
Recorded Investment With Allowance | 0 | ||
Total Recorded Investment | 0 | ||
Related Allowance | 0 | ||
Average Recorded Investment | 0 | ||
Interest Recognized | 0 | ||
Installment | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Contractual Principal Balance | 965 | 650 | 695 |
Recorded Investment With No Allowance | 965 | 0 | 655 |
Recorded Investment With Allowance | 0 | 650 | 45 |
Total Recorded Investment | 965 | 650 | 700 |
Related Allowance | 0 | 650 | 3 |
Average Recorded Investment | 968 | 1,043 | 209 |
Interest Recognized | $ 35 | $ 21 | $ 37 |
Loans, Part IV (Details)
Loans, Part IV (Details) | 12 Months Ended | ||
Dec. 31, 2016USD ($)contractloan | Dec. 31, 2015USD ($)contractloan | Dec. 31, 2014USD ($)contractloan | |
Financing Receivable, Modifications [Line Items] | |||
Period of successful payment history used for restructured loan accrual status | 6 months | ||
Troubled Debt Restructurings [Abstract] | |||
Number of Contracts | contract | 7 | 3 | 11,000 |
Pre- Modification Outstanding Recorded Investment | $ 2,641,000 | $ 6,785,000 | $ 9,243,000 |
Post- Modification Outstanding Recorded Investment | $ 2,370,000 | $ 6,770,000 | $ 8,536,000 |
Number of Contracts in Default | contract | 1 | 0 | 8,000 |
Recorded Investment on Defaulted TDRs | $ 290,000 | $ 0 | $ 1,471,000 |
Financing Receivable, Modifications, Recorded Investment [Roll Forward] | |||
Beginning balance | 18,508,000 | 15,000,000 | 9,059,000 |
Defaults | (290,000) | 0 | (1,471,000) |
Additions | 2,370,000 | 6,770,000 | 9,243,000 |
Principal advances (reductions) | (8,178,000) | (3,262,000) | (1,831,000) |
Ending balance | 12,410,000 | 18,508,000 | 15,000,000 |
Allowance for loan loss | $ 714,000 | $ 1,692,000 | $ 715,000 |
Number of restructured loans | loan | 28 | 29 | 33 |
Total restructured loans | $ 12,410,000 | $ 18,508,000 | $ 15,000,000 |
Troubled debt restructuring, commitment to lend | $ 0 | $ 454,000 | $ 0 |
Commercial and Business loans | |||
Troubled Debt Restructurings [Abstract] | |||
Number of Contracts | contract | 5 | 1 | 5,000 |
Pre- Modification Outstanding Recorded Investment | $ 1,295,000 | $ 81,000 | $ 456,000 |
Post- Modification Outstanding Recorded Investment | $ 1,024,000 | $ 76,000 | $ 437,000 |
Number of Contracts in Default | contract | 1 | 0 | 1,000 |
Recorded Investment on Defaulted TDRs | $ 290,000 | $ 0 | $ 0 |
Government Program Loans | |||
Troubled Debt Restructurings [Abstract] | |||
Number of Contracts | contract | 1 | 0 | 1,000 |
Pre- Modification Outstanding Recorded Investment | $ 100,000 | $ 0 | $ 544,000 |
Post- Modification Outstanding Recorded Investment | $ 100,000 | $ 0 | $ 539,000 |
Number of Contracts in Default | contract | 0 | 0 | 2,000 |
Recorded Investment on Defaulted TDRs | $ 0 | $ 0 | $ 421,000 |
Commercial Real Estate | |||
Troubled Debt Restructurings [Abstract] | |||
Number of Contracts | contract | 0 | 0 | 2,000 |
Pre- Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 1,948,000 |
Post- Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 1,362,000 |
Number of Contracts in Default | contract | 0 | 0 | 0 |
Recorded Investment on Defaulted TDRs | $ 0 | $ 0 | $ 0 |
Financing Receivable, Modifications, Recorded Investment [Roll Forward] | |||
Beginning balance | 1,243,000 | 2,713,000 | 1,468,000 |
Defaults | 0 | 0 | 0 |
Additions | 1,246,000 | 0 | 1,948,000 |
Principal advances (reductions) | (1,035,000) | (1,470,000) | (703,000) |
Ending balance | 1,454,000 | 1,243,000 | 2,713,000 |
Allowance for loan loss | $ 453,000 | $ 477,000 | $ 478,000 |
Single Family Residential Loans | |||
Troubled Debt Restructurings [Abstract] | |||
Number of Contracts | contract | 0 | 1 | 0 |
Pre- Modification Outstanding Recorded Investment | $ 0 | $ 258,000 | $ 0 |
Post- Modification Outstanding Recorded Investment | $ 0 | $ 248,000 | $ 0 |
Number of Contracts in Default | contract | 0 | 0 | 3,000 |
Recorded Investment on Defaulted TDRs | $ 0 | $ 0 | $ 656,000 |
Installment & Other | |||
Financing Receivable, Modifications, Recorded Investment [Roll Forward] | |||
Beginning balance | 650,000 | 695,000 | 48,000 |
Defaults | 0 | 0 | 0 |
Additions | 0 | 0 | 630,000 |
Principal advances (reductions) | 315,000 | (45,000) | 17,000 |
Ending balance | 965,000 | 650,000 | 695,000 |
Allowance for loan loss | $ 0 | $ 650,000 | $ 3,000 |
Home Improvement and Home Equity loans | |||
Troubled Debt Restructurings [Abstract] | |||
Number of Contracts | contract | 0 | 0 | 0 |
Pre- Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 |
Post- Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 |
Number of Contracts in Default | contract | 0 | 0 | 0 |
Recorded Investment on Defaulted TDRs | $ 0 | $ 0 | $ 0 |
Financing Receivable, Modifications, Recorded Investment [Roll Forward] | |||
Beginning balance | 0 | 0 | 0 |
Defaults | 0 | 0 | 0 |
Additions | 0 | 0 | 0 |
Principal advances (reductions) | 0 | 0 | 0 |
Ending balance | 0 | 0 | 0 |
Allowance for loan loss | $ 0 | $ 0 | $ 0 |
Real Estate Construction and Development | |||
Troubled Debt Restructurings [Abstract] | |||
Number of Contracts | contract | 1 | 1 | 2,000 |
Pre- Modification Outstanding Recorded Investment | $ 1,246,000 | $ 6,446,000 | $ 5,665,000 |
Post- Modification Outstanding Recorded Investment | $ 1,246,000 | $ 6,446,000 | $ 5,548,000 |
Number of Contracts in Default | contract | 0 | 0 | 2,000 |
Recorded Investment on Defaulted TDRs | $ 0 | $ 0 | $ 394,000 |
Financing Receivable, Modifications, Recorded Investment [Roll Forward] | |||
Beginning balance | 12,168,000 | 6,029,000 | 1,551,000 |
Defaults | 0 | 0 | (394,000) |
Additions | 0 | 6,446,000 | 5,665,000 |
Principal advances (reductions) | (5,901,000) | (307,000) | (793,000) |
Ending balance | 6,267,000 | 12,168,000 | 6,029,000 |
Allowance for loan loss | 0 | 384,000 | 0 |
Residential Mortgages | |||
Financing Receivable, Modifications, Recorded Investment [Roll Forward] | |||
Beginning balance | 3,533,000 | 4,225,000 | 5,273,000 |
Defaults | 0 | 0 | (656,000) |
Additions | 0 | 248,000 | 0 |
Principal advances (reductions) | (1,165,000) | (940,000) | (392,000) |
Ending balance | 2,368,000 | 3,533,000 | 4,225,000 |
Allowance for loan loss | 157,000 | 149,000 | 170,000 |
Total Commercial and Industrial | |||
Financing Receivable, Modifications, Recorded Investment [Roll Forward] | |||
Beginning balance | 898,000 | 1,306,000 | 675,000 |
Defaults | (290,000) | 0 | (421,000) |
Additions | 1,124,000 | 76,000 | 1,000,000 |
Principal advances (reductions) | (376,000) | (484,000) | 52,000 |
Ending balance | 1,356,000 | 898,000 | 1,306,000 |
Allowance for loan loss | $ 104,000 | $ 32,000 | $ 64,000 |
Agricultural | |||
Troubled Debt Restructurings [Abstract] | |||
Number of Contracts | contract | 0 | 0 | 0 |
Pre- Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 |
Post- Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 |
Number of Contracts in Default | contract | 0 | 0 | 0 |
Recorded Investment on Defaulted TDRs | $ 0 | $ 0 | $ 0 |
Financing Receivable, Modifications, Recorded Investment [Roll Forward] | |||
Beginning balance | 16,000 | 32,000 | 44,000 |
Defaults | 0 | 0 | 0 |
Additions | 0 | 0 | 0 |
Principal advances (reductions) | (16,000) | (16,000) | (12,000) |
Ending balance | 0 | 16,000 | 32,000 |
Allowance for loan loss | $ 0 | $ 0 | $ 0 |
Consumer Loans | |||
Troubled Debt Restructurings [Abstract] | |||
Number of Contracts | contract | 0 | 0 | 1,000 |
Pre- Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 630,000 |
Post- Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 650,000 |
Number of Contracts in Default | contract | 0 | 0 | 0 |
Recorded Investment on Defaulted TDRs | $ 0 | $ 0 | $ 0 |
Overdraft protection Lines | |||
Troubled Debt Restructurings [Abstract] | |||
Number of Contracts | contract | 0 | 0 | 0 |
Pre- Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 |
Post- Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 |
Number of Contracts in Default | contract | 0 | 0 | 0 |
Recorded Investment on Defaulted TDRs | $ 0 | $ 0 | $ 0 |
Loans, Part V (Details)
Loans, Part V (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)rating | Dec. 31, 2015USD ($) | |
Financing Receivable, Recorded Investment [Line Items] | ||
Number of risk rating approaches | rating | 2 | |
Credit risk ratings [Abstract] | ||
Total | $ 436,823 | $ 421,113 |
Commercial and Industrial | ||
Credit risk ratings [Abstract] | ||
Total | 49,005 | 55,826 |
Commercial RE | ||
Credit risk ratings [Abstract] | ||
Total | 200,213 | 182,554 |
Real Estate Construction and Development Loans | ||
Credit risk ratings [Abstract] | ||
Total | 130,687 | 130,596 |
Agricultural | ||
Credit risk ratings [Abstract] | ||
Total | 56,918 | 52,137 |
Residential Mortgages | ||
Credit risk ratings [Abstract] | ||
Total | 87,388 | 68,811 |
Home Improvement and Home Equity | ||
Credit risk ratings [Abstract] | ||
Total | 599 | 867 |
Installment | ||
Credit risk ratings [Abstract] | ||
Total | 44,949 | 24,527 |
Consumer Related Loans and Other Homogenous Loans | ||
Credit risk ratings [Abstract] | ||
Total | 132,936 | 94,205 |
Grades 1 and 2 | ||
Credit risk ratings [Abstract] | ||
Total | 415 | 569 |
Grades 1 and 2 | Commercial and Industrial | ||
Credit risk ratings [Abstract] | ||
Total | 340 | 519 |
Grades 1 and 2 | Commercial RE | ||
Credit risk ratings [Abstract] | ||
Total | 0 | 0 |
Grades 1 and 2 | Real Estate Construction and Development Loans | ||
Credit risk ratings [Abstract] | ||
Total | 0 | 0 |
Grades 1 and 2 | Agricultural | ||
Credit risk ratings [Abstract] | ||
Total | 75 | 50 |
Grade 3 | ||
Credit risk ratings [Abstract] | ||
Total | 10,590 | 10,972 |
Grade 3 | Commercial and Industrial | ||
Credit risk ratings [Abstract] | ||
Total | 4,823 | 5,008 |
Grade 3 | Commercial RE | ||
Credit risk ratings [Abstract] | ||
Total | 5,767 | 5,964 |
Grade 3 | Real Estate Construction and Development Loans | ||
Credit risk ratings [Abstract] | ||
Total | 0 | 0 |
Grade 3 | Agricultural | ||
Credit risk ratings [Abstract] | ||
Total | 0 | 0 |
Grades 4 and 5 – pass | ||
Credit risk ratings [Abstract] | ||
Total | $ 395,455 | 373,766 |
Grades 4 and 5 – pass | Minimum | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Notes receivable, period of loss recognition | 3 years | |
Grades 4 and 5 – pass | Maximum | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Notes receivable, period of loss recognition | 4 years | |
Grades 4 and 5 – pass | Commercial and Industrial | ||
Credit risk ratings [Abstract] | ||
Total | $ 34,921 | 44,341 |
Grades 4 and 5 – pass | Commercial RE | ||
Credit risk ratings [Abstract] | ||
Total | 192,699 | 173,731 |
Grades 4 and 5 – pass | Real Estate Construction and Development Loans | ||
Credit risk ratings [Abstract] | ||
Total | 110,992 | 103,607 |
Grades 4 and 5 – pass | Agricultural | ||
Credit risk ratings [Abstract] | ||
Total | 56,843 | 52,087 |
Grade 6 – special mention | ||
Credit risk ratings [Abstract] | ||
Total | 5,965 | 2,562 |
Grade 6 – special mention | Commercial and Industrial | ||
Credit risk ratings [Abstract] | ||
Total | 4,416 | 946 |
Grade 6 – special mention | Commercial RE | ||
Credit risk ratings [Abstract] | ||
Total | 621 | 1,616 |
Grade 6 – special mention | Real Estate Construction and Development Loans | ||
Credit risk ratings [Abstract] | ||
Total | 928 | 0 |
Grade 6 – special mention | Agricultural | ||
Credit risk ratings [Abstract] | ||
Total | 0 | 0 |
Grade 7 – substandard | ||
Credit risk ratings [Abstract] | ||
Total | 24,398 | 33,244 |
Grade 7 – substandard | Commercial and Industrial | ||
Credit risk ratings [Abstract] | ||
Total | 4,505 | 5,012 |
Grade 7 – substandard | Commercial RE | ||
Credit risk ratings [Abstract] | ||
Total | 1,126 | 1,243 |
Grade 7 – substandard | Real Estate Construction and Development Loans | ||
Credit risk ratings [Abstract] | ||
Total | 18,767 | 26,989 |
Grade 7 – substandard | Agricultural | ||
Credit risk ratings [Abstract] | ||
Total | 0 | 0 |
Grade 8 – doubtful | ||
Credit risk ratings [Abstract] | ||
Total | 0 | 0 |
Grade 8 – doubtful | Commercial and Industrial | ||
Credit risk ratings [Abstract] | ||
Total | 0 | 0 |
Grade 8 – doubtful | Commercial RE | ||
Credit risk ratings [Abstract] | ||
Total | 0 | 0 |
Grade 8 – doubtful | Real Estate Construction and Development Loans | ||
Credit risk ratings [Abstract] | ||
Total | 0 | 0 |
Grade 8 – doubtful | Agricultural | ||
Credit risk ratings [Abstract] | ||
Total | 0 | 0 |
Not graded | Residential Mortgages | ||
Credit risk ratings [Abstract] | ||
Total | 69,955 | 47,135 |
Not graded | Home Improvement and Home Equity | ||
Credit risk ratings [Abstract] | ||
Total | 573 | 839 |
Not graded | Installment | ||
Credit risk ratings [Abstract] | ||
Total | 41,855 | 23,213 |
Not graded | Consumer Related Loans and Other Homogenous Loans | ||
Credit risk ratings [Abstract] | ||
Total | 112,383 | 71,187 |
Pass | Residential Mortgages | ||
Credit risk ratings [Abstract] | ||
Total | 15,669 | 19,466 |
Pass | Home Improvement and Home Equity | ||
Credit risk ratings [Abstract] | ||
Total | 26 | 28 |
Pass | Installment | ||
Credit risk ratings [Abstract] | ||
Total | 2,120 | 664 |
Pass | Consumer Related Loans and Other Homogenous Loans | ||
Credit risk ratings [Abstract] | ||
Total | 17,815 | 20,158 |
Special Mention | Residential Mortgages | ||
Credit risk ratings [Abstract] | ||
Total | 0 | 0 |
Special Mention | Home Improvement and Home Equity | ||
Credit risk ratings [Abstract] | ||
Total | 0 | 0 |
Special Mention | Installment | ||
Credit risk ratings [Abstract] | ||
Total | 0 | 0 |
Special Mention | Consumer Related Loans and Other Homogenous Loans | ||
Credit risk ratings [Abstract] | ||
Total | 0 | 0 |
Substandard | Residential Mortgages | ||
Credit risk ratings [Abstract] | ||
Total | 1,764 | 2,210 |
Substandard | Home Improvement and Home Equity | ||
Credit risk ratings [Abstract] | ||
Total | 0 | 0 |
Substandard | Installment | ||
Credit risk ratings [Abstract] | ||
Total | 9 | 650 |
Substandard | Consumer Related Loans and Other Homogenous Loans | ||
Credit risk ratings [Abstract] | ||
Total | 1,773 | 2,860 |
Doubtful | Residential Mortgages | ||
Credit risk ratings [Abstract] | ||
Total | 0 | 0 |
Doubtful | Home Improvement and Home Equity | ||
Credit risk ratings [Abstract] | ||
Total | 0 | 0 |
Doubtful | Installment | ||
Credit risk ratings [Abstract] | ||
Total | 965 | 0 |
Doubtful | Consumer Related Loans and Other Homogenous Loans | ||
Credit risk ratings [Abstract] | ||
Total | $ 965 | $ 0 |
Loans, Part VI (Details)
Loans, Part VI (Details) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2016USD ($)segmentloan | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Number of loan portfolio segment | segment | 11 | |||||
Number of loans entity experienced losses over past twelve quarters | loan | 12 | |||||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||||||
Beginning balance | $ 9,713 | $ 10,771 | $ 10,988 | |||
Provision (recovery of provision) for credit losses | (21) | (41) | (845) | |||
Charge-offs | (923) | (1,886) | (534) | |||
Recoveries | 133 | 869 | 1,162 | |||
Net recoveries(charge-offs) | (790) | (1,017) | 628 | |||
Ending balance | 8,902 | 9,713 | 10,771 | |||
Period-end amount allocated to: | ||||||
Loans individually evaluated for impairment | $ 1,360 | $ 3,097 | $ 715 | |||
Loans collectively evaluated for impairment | 7,542 | 6,616 | 10,056 | |||
Ending balance | $ 9,713 | 10,771 | 10,988 | 8,902 | 9,713 | 10,771 |
Loans Individually Evaluated for Impairment | 16,179 | 23,679 | 16,037 | |||
Loans Collectively Evaluated for Impairment | 553,580 | 491,639 | 441,882 | |||
Total Loans | 569,759 | 515,318 | 457,919 | |||
Consumer Loans | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Number of loan portfolio segment | segment | 3 | |||||
Commercial and Business loans | ||||||
Period-end amount allocated to: | ||||||
Loans Individually Evaluated for Impairment | 4,653 | 4,874 | 1,000 | |||
Loans Collectively Evaluated for Impairment | 42,811 | 49,629 | 59,422 | |||
Total Loans | 47,464 | 54,503 | 60,422 | |||
Government Program Loans | ||||||
Period-end amount allocated to: | ||||||
Loans Individually Evaluated for Impairment | 356 | 327 | 421 | |||
Loans Collectively Evaluated for Impairment | 1,185 | 996 | 1,526 | |||
Total Loans | 1,541 | 1,323 | 1,947 | |||
Total Commercial and Industrial | ||||||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||||||
Beginning balance | $ 1,652 | 1,218 | 2,340 | |||
Provision (recovery of provision) for credit losses | 980 | 1,201 | (1,129) | |||
Charge-offs | (849) | (1,397) | (318) | |||
Recoveries | 60 | 630 | 325 | |||
Net recoveries(charge-offs) | (789) | (767) | 7 | |||
Ending balance | 1,843 | 1,652 | 1,218 | |||
Period-end amount allocated to: | ||||||
Loans individually evaluated for impairment | 757 | 530 | 64 | |||
Loans collectively evaluated for impairment | 1,086 | 1,122 | 1,154 | |||
Ending balance | 1,652 | 1,218 | 2,340 | 1,843 | 1,652 | 1,218 |
Loans Individually Evaluated for Impairment | 5,009 | 5,201 | 1,421 | |||
Loans Collectively Evaluated for Impairment | 43,996 | 50,625 | 60,948 | |||
Total Loans | 49,005 | 55,826 | 62,369 | |||
Commercial Real Estate Loans | ||||||
Period-end amount allocated to: | ||||||
Loans Individually Evaluated for Impairment | 1,456 | 1,243 | 3,145 | |||
Loans Collectively Evaluated for Impairment | 198,757 | 181,311 | 151,527 | |||
Total Loans | 200,213 | 182,554 | 154,672 | |||
Residential Mortgage Loans | ||||||
Period-end amount allocated to: | ||||||
Loans Individually Evaluated for Impairment | 2,475 | 4,050 | 4,326 | |||
Loans Collectively Evaluated for Impairment | 84,913 | 64,761 | 54,769 | |||
Total Loans | 87,388 | 68,811 | 59,095 | |||
Home Improvement and Home Equity loans | ||||||
Period-end amount allocated to: | ||||||
Loans Individually Evaluated for Impairment | 0 | 0 | 42 | |||
Loans Collectively Evaluated for Impairment | 599 | 867 | 1,068 | |||
Total Loans | 599 | 867 | 1,110 | |||
Total Real Estate Mortgage | ||||||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||||||
Beginning balance | 1,449 | 1,653 | 1,862 | |||
Provision (recovery of provision) for credit losses | (15) | (369) | (89) | |||
Charge-offs | (29) | 0 | (140) | |||
Recoveries | 25 | 165 | 20 | |||
Net recoveries(charge-offs) | (4) | 165 | (120) | |||
Ending balance | 1,430 | 1,449 | 1,653 | |||
Period-end amount allocated to: | ||||||
Loans individually evaluated for impairment | 603 | 635 | 648 | |||
Loans collectively evaluated for impairment | 827 | 814 | 1,005 | |||
Ending balance | 1,449 | 1,653 | 1,862 | 1,430 | 1,449 | 1,653 |
Loans Individually Evaluated for Impairment | 3,931 | 5,293 | 7,513 | |||
Loans Collectively Evaluated for Impairment | 284,269 | 246,939 | 207,364 | |||
Total Loans | 288,200 | 252,232 | 214,877 | |||
Real Estate Construction and Development Loans | ||||||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||||||
Beginning balance | 4,629 | 6,278 | 5,533 | |||
Provision (recovery of provision) for credit losses | (1,281) | (1,709) | 97 | |||
Charge-offs | 0 | 0 | (60) | |||
Recoveries | 30 | 60 | 708 | |||
Net recoveries(charge-offs) | 30 | 60 | 648 | |||
Ending balance | 3,378 | 4,629 | 6,278 | |||
Period-end amount allocated to: | ||||||
Loans individually evaluated for impairment | 0 | 1,282 | 0 | |||
Loans collectively evaluated for impairment | 3,378 | 3,347 | 6,278 | |||
Ending balance | 4,629 | 6,278 | 5,533 | 3,378 | 4,629 | 6,278 |
Loans Individually Evaluated for Impairment | 6,274 | 12,519 | 6,371 | |||
Loans Collectively Evaluated for Impairment | 124,413 | 118,077 | 130,787 | |||
Total Loans | 130,687 | 130,596 | 137,158 | |||
Agricultural | ||||||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||||||
Beginning balance | 655 | 482 | 583 | |||
Provision (recovery of provision) for credit losses | 32 | 173 | (106) | |||
Charge-offs | (21) | 0 | 0 | |||
Recoveries | 0 | 0 | 5 | |||
Net recoveries(charge-offs) | (21) | 0 | 5 | |||
Ending balance | 666 | 655 | 482 | |||
Period-end amount allocated to: | ||||||
Loans individually evaluated for impairment | 0 | 0 | 0 | |||
Loans collectively evaluated for impairment | 666 | 655 | 482 | |||
Ending balance | 655 | 482 | 583 | 666 | 655 | 482 |
Loans Individually Evaluated for Impairment | 0 | 16 | 32 | |||
Loans Collectively Evaluated for Impairment | 56,918 | 52,121 | 31,681 | |||
Total Loans | 56,918 | 52,137 | 31,713 | |||
Installment & Other | ||||||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||||||
Beginning balance | 1,258 | 293 | 275 | |||
Provision (recovery of provision) for credit losses | (388) | 1,422 | (40) | |||
Charge-offs | 0 | (467) | 0 | |||
Recoveries | 18 | 10 | 58 | |||
Net recoveries(charge-offs) | 18 | (457) | 58 | |||
Ending balance | 888 | 1,258 | 293 | |||
Period-end amount allocated to: | ||||||
Loans individually evaluated for impairment | 0 | 650 | 3 | |||
Loans collectively evaluated for impairment | 888 | 608 | 290 | |||
Ending balance | 1,258 | 293 | 275 | 888 | 1,258 | 293 |
Loans Individually Evaluated for Impairment | 965 | 650 | 700 | |||
Loans Collectively Evaluated for Impairment | 43,984 | 23,877 | 11,102 | |||
Total Loans | 44,949 | 24,527 | 11,802 | |||
Commercial Lease Financing | ||||||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||||||
Beginning balance | 0 | 0 | 0 | |||
Provision (recovery of provision) for credit losses | 0 | 0 | (46) | |||
Charge-offs | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 46 | |||
Net recoveries(charge-offs) | 0 | 0 | 46 | |||
Ending balance | 0 | 0 | 0 | |||
Period-end amount allocated to: | ||||||
Loans individually evaluated for impairment | 0 | 0 | 0 | |||
Loans collectively evaluated for impairment | 0 | 0 | 0 | |||
Ending balance | 0 | 0 | 0 | 0 | 0 | 0 |
Unallocated | ||||||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||||||
Beginning balance | 70 | 847 | 395 | |||
Provision (recovery of provision) for credit losses | 651 | (759) | 468 | |||
Charge-offs | (24) | (22) | (16) | |||
Recoveries | 0 | 4 | 0 | |||
Net recoveries(charge-offs) | (24) | (18) | (16) | |||
Ending balance | 697 | 70 | 847 | |||
Period-end amount allocated to: | ||||||
Loans individually evaluated for impairment | 0 | 0 | 0 | |||
Loans collectively evaluated for impairment | 697 | 70 | 847 | |||
Ending balance | $ 70 | $ 847 | $ 395 | $ 697 | $ 70 | $ 847 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | $ 25,310 | $ 24,255 | |
Less accumulated depreciation and amortization | (14,865) | (13,455) | |
Total premises and equipment | 10,445 | 10,800 | |
Depreciation expenses on premises equipment | 1,428 | 1,462 | $ 1,390 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | 968 | 968 | |
Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | 14,841 | 14,791 | |
Furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | $ 9,501 | $ 8,496 |
Investment in Limited Partner52
Investment in Limited Partnership (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | |||
Loss on California tax credit partnership | $ 158,000 | $ 73,000 | $ 39,000 |
Investment tax credit | $ 1,800,000 | ||
Tax credit carryforward expiration period | tax credits expired during 2015 | ||
Tax credits utilized for income tax | $ 0 | $ 0 | |
Limited Partnership | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership (percent) | 9.14% | ||
Total investment | $ 757,000 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deposits [Abstract] | ||
Noninterest-bearing deposits | $ 262,697 | $ 262,168 |
Interest-bearing deposits: | ||
NOW and money market accounts | 235,873 | 226,886 |
Savings accounts | 75,068 | 63,592 |
Time deposits: | ||
$250000 | 87,419 | 58,122 |
$250,000 and over | 15,572 | 11,037 |
Total interest-bearing deposits | 413,932 | 359,637 |
Total deposits | 676,629 | 621,805 |
Maturities of Deposits [Abstract] | ||
One year or less | 91,320 | |
More than one year, but less than or equal to two years | 9,214 | |
More than two years, but less than or equal to three years | 1,681 | |
More than three years, but less than or equal to four years | 348 | |
More than four years, but less than or equal to five years | 428 | |
More than five years | 0 | |
Time Deposits | 102,991 | |
Brokered time deposits | 28,132 | 8,546 |
Contractual maturities, time deposits, $250,000 or more, three months or less | 7,627 | |
Contractual maturities, time deposits, $250,000 or more, three months through six months | 20,505 | |
Deposit overdrafts | 283 | 158 |
Deposits of related parties | $ 9,299 | $ 13,746 |
Short-term Borrowings_Other B54
Short-term Borrowings/Other Borrowings (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Short-term Debt [Line Items] | ||
Short-term debt outstanding | $ 0 | $ 0 |
Federal Reserve Bank of San Francisco | ||
Short-term Debt [Line Items] | ||
Unused borrowing lines | 323,162,000 | 302,456,000 |
Qualifying loans pledged as collateral for borrowing lines | 471,737,000 | 444,596,000 |
Federal Home Loan Bank (FHLB) | ||
Short-term Debt [Line Items] | ||
Unused borrowing lines | 2,037,000 | 2,854,000 |
Investment securities pledged as collateral | 2,152,000 | 3,023,000 |
Pacific Coast Bankers Bank (PCBB) | ||
Short-term Debt [Line Items] | ||
Unused borrowing lines | 10,000,000 | $ 10,000,000 |
Zions First National Bank | ||
Short-term Debt [Line Items] | ||
Unused borrowing lines | $ 20,000,000 |
Junior Subordinated Debt_Trus55
Junior Subordinated Debt/Trust Preferred Securities (Details) | Sep. 30, 2009USD ($) | Sep. 30, 2015USD ($) | Aug. 31, 2015USD ($) | Jul. 31, 2007USD ($) | Dec. 31, 2016USD ($)quarter | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Jul. 31, 2013USD ($) |
Debt Instrument [Line Items] | ||||||||
Amount of junior subordinated debentures relating to trust preferred securities | $ 15,000,000 | $ 12,000,000 | $ 15,000,000 | |||||
Maximum number of consecutive quarters the entity defer interest payments without default or penalty | quarter | 20 | |||||||
Gain on redemption of JR subordinated debentures | $ 0 | $ 78,000 | $ 0 | |||||
Loss on fair value of financial liability | (518,000) | (73,000) | $ (102,000) | |||||
Junior Subordinated Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Amount of junior subordinated debentures relating to trust preferred securities | $ 15,000,000 | 12,000,000 | ||||||
Life of debt instrument | 30 years | |||||||
Debt instrument variable interest rate (percent) | 1.29% | |||||||
Initial coupon rate (percent) | 6.65% | |||||||
Frequency of interest payment | quarterly | |||||||
Accrued and unpaid interest on debt | 64,000 | 50,000 | ||||||
Fair value discount (percentage) | 40.00% | |||||||
Amount of debt canceled | $ 3,000,000 | 3,000,000 | $ 3,000,000 | |||||
Gain on redemption of JR subordinated debentures | $ 78,000 | |||||||
Cumulative gain recorded on debt | $ 3,696,000 | |||||||
Junior Subordinated Debt | Discounted Cash Flow Valuation Technique | Significant Unobservable Inputs Level 3 | ||||||||
Debt Instrument [Line Items] | ||||||||
Discount rate used in the valuation of debt instrument (percent) | 6.46% | 6.82% | ||||||
United Security Bank | Junior Subordinated Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Amount of junior subordinated debentures relating to trust preferred securities | $ 3,000,000 |
Taxes on Income (Details)
Taxes on Income (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred tax assets: | |||
Credit losses not currently deductible | $ 4,151,000 | $ 4,489,000 | |
Deferred compensation | 1,782,000 | 1,891,000 | |
Net operating losses | 0 | 459,000 | |
Depreciation | 51,000 | 338,000 | |
Accrued reserves | 200,000 | 73,000 | |
Write-down on other real estate owned | 534,000 | 534,000 | |
Unrealized gain on AFS & retirement obligation | 415,000 | 147,000 | |
Interest on nonaccrual loans | 36,000 | 36,000 | |
Capitalized OREO expenses | 0 | 826,000 | |
Other | 1,897,000 | 2,196,000 | |
Total deferred tax assets | 9,066,000 | 10,989,000 | |
Deferred tax liabilities: | |||
State Tax | (1,087,000) | (1,281,000) | |
FHLB dividend | (65,000) | (65,000) | |
Loss on limited partnership investment | (1,222,000) | (1,286,000) | |
Deferred gain ASC 825 – fair value option | (1,657,000) | (1,890,000) | |
Fair value adjustments for purchase accounting | (139,000) | (139,000) | |
Deferred loan costs | (1,318,000) | (868,000) | |
Prepaid expenses | (280,000) | (232,000) | |
Total deferred tax liabilities | (5,768,000) | (5,761,000) | |
Net deferred tax assets | 3,298,000 | 5,228,000 | |
Federal | |||
Current | 2,642,000 | 2,847,000 | $ 1,129,000 |
Deferred | 941,000 | 465,000 | 1,994,000 |
Total Federal Income Taxes | 3,583,000 | 3,312,000 | 3,123,000 |
State | |||
Current | 28,000 | 10,000 | (1,753,000) |
Deferred | 1,258,000 | 1,175,000 | 2,822,000 |
Total State Income Taxes | 1,286,000 | 1,185,000 | 1,069,000 |
Total | |||
Current | 2,670,000 | 2,857,000 | (624,000) |
Deferred | 2,199,000 | 1,640,000 | 4,816,000 |
Total Income Taxes | $ 4,869,000 | $ 4,497,000 | $ 4,192,000 |
Reconciliation of the statutory federal income tax rate [Abstract] | |||
Statutory federal income tax rate (percent) | 34.00% | 34.00% | 34.00% |
State franchise tax, net of federal income tax benefit (percent) | 6.90% | 6.90% | 6.80% |
Other (percent) | (1.20%) | (1.10%) | (0.50%) |
Total (percent) | 39.70% | 39.80% | 40.30% |
Federal | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 0 | ||
State | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 0 |
Stock Based Compensation (Detai
Stock Based Compensation (Details) | 1 Months Ended | 12 Months Ended | |||||
May 31, 2005 | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)shares | May 31, 2015shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock based compensation plans | 2 | ||||||
Option exercisable (percent) | 20.00% | ||||||
Options expiration period | 10 years | ||||||
Options outstanding, exercisable, exercised and forfeited [Roll Forward] | |||||||
Exercised (in shares) | 0 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||||||
Options exercisable (in shares) | 21,964 | ||||||
Options exercisable weighted average exercise price (in dollars per share) | $ / shares | $ 3.74 | ||||||
Options exercisable weighted average remaining contract term | 6 years 4 months | ||||||
Options exercisable intrinsic value | $ | $ 74,000 | ||||||
Share-based compensation | $ | $ 30,000 | $ 26,000 | $ 28,000 | ||||
Unrecognized compensation expense | $ | $ 85,000 | 30,000 | $ 48,000 | ||||
Cost recognized weighted average period | 3 years | ||||||
Share based compensation arrangement by share based payment award options grants in period grant date intrinsic value [Abstract] | |||||||
Weighted average grant-date fair value of stock options granted (in dollars per share) | $ / shares | $ 0 | $ 0 | $ 3.33 | ||||
Total fair value of stock options vested | $ | $ 19,650 | $ 19,640 | $ 31,440 | ||||
Total intrinsic value of stock options exercised | $ | $ 4,500 | $ 0 | 39,711 | ||||
Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||||||
Unrecognized compensation expense | $ | $ 0 | $ 35,000 | $ 44,000 | ||||
Cost recognized weighted average period | 3 years 4 months 24 days | ||||||
2005 Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares granted outstanding (in shares) | 120,635 | 120,635 | 36,772 | 120,635 | |||
Number of stock option vested in period (in shares) | 21,964 | ||||||
Options outstanding, exercisable, exercised and forfeited [Roll Forward] | |||||||
Options outstanding (in shares) | 120,635 | ||||||
Granted (in shares) | 0 | ||||||
Exercised (in shares) | 2,513 | ||||||
Forfeited (in shares) | 81,350 | ||||||
Options outstanding (in shares) | 36,772 | 120,635 | |||||
Weighted Average Exercise Price [Roll Forward] | |||||||
Options outstanding (in dollars per share) | $ / shares | $ 9.02 | ||||||
Granted (in dollars per share) | $ / shares | 0 | ||||||
Exercised (in dollars per share) | $ / shares | 2.57 | ||||||
Forfeited (in dollars per share) | $ / shares | 12.25 | ||||||
Options outstanding (in dollars per share) | $ / shares | $ 3.87 | $ 9.02 | |||||
2005 Plan | Incentive Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares granted outstanding (in shares) | 36,772 | 36,772 | |||||
Options outstanding, exercisable, exercised and forfeited [Roll Forward] | |||||||
Granted (in shares) | 0 | 14,290 | 5,524 | ||||
Options outstanding (in shares) | 36,772 | ||||||
Stock options valuation assumptions [Abstract] | |||||||
Risk Free Interest Rate (percent) | 0.00% | 0.00% | 1.70% | ||||
Expected Dividend Yield (percent) | 0.00% | 0.00% | 0.00% | ||||
Expected Life in Years | 0 years | 0 years | 5 years 6 months | ||||
Expected Price Volatility (percent) | 0.00% | 0.00% | 67.02% | ||||
2005 Plan | Nonqualified Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares granted outstanding (in shares) | 0 | 0 | |||||
Options outstanding, exercisable, exercised and forfeited [Roll Forward] | |||||||
Options outstanding (in shares) | 0 | ||||||
2015 Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized (in shares) | 750,495 | ||||||
2015 Plan | Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||
Non-vested awards, beginning balance (shares) | 14,870 | ||||||
Granted during the year (shares) | 0 | ||||||
Vested during the year (shares) | 2,974 | ||||||
Canceled during the year (shares) | 0 | ||||||
Non-vested awards, ending balance (shares) | 11,896 | 14,870 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||||||
Non-vested awards, beginning balance (dollars per share) | $ / shares | $ 5.18 | ||||||
Granted during the year (dollars per share) | $ / shares | |||||||
Vested during the year (dollars per share) | $ / shares | 5.18 | ||||||
Canceled during the year (dollars per share) | $ / shares | 0 | ||||||
Non-vested awards, ending balance (dollars per share) | $ / shares | $ 5.18 | $ 5.18 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
401K Plan [Abstract] | |||
Employers matching contribution vesting percentage (percent) | 100.00% | ||
Matching contributions | $ 280 | $ 240 | $ 239 |
Salary Continuation Plan [Abstract] | |||
Life insurance premium expense | $ 65 | ||
Salary continuation contracts, service period | 20 years | ||
Salary continuation plan accrued liability | $ 3,975 | $ 3,909 | |
Discounted cash flow rate (percent) | 3.21% | 3.28% | |
Cash surrender value | $ 6,452 | $ 6,095 | |
Income on insurance | 474 | 268 | 1,405 |
Unrecognized net periodic benefit costs | 383 | 371 | 502 |
Officer Supplemental Life Insurance Plan [Abstract] | |||
Cash surrender value of bank owned life insurance policies | 12,595 | 12,242 | |
Income (Loss) on Bank Owned Life Insurance Policies | $ 474 | 399 | 514 |
Maximum | |||
401K Plan [Abstract] | |||
Matching contribution (percent) | 4.00% | ||
Salary Continuation Plan | |||
Salary Continuation Plan [Abstract] | |||
Additional compensation benefits term | 15 years | ||
Salaries and benefits expense | $ 137 | $ 193 | $ 143 |
Salary Continuation Plan | Minimum | |||
Salary Continuation Plan [Abstract] | |||
Benefit plan vesting period | 12 years | ||
Salary Continuation Plan | Maximum | |||
Salary Continuation Plan [Abstract] | |||
Benefit plan vesting period | 32 years |
Commitments and Contingent Li59
Commitments and Contingent Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent expenses, total | $ 862 | $ 782 | $ 718 |
Rental adjustments | 8 | 16 | $ 23 |
Future minimum rental commitments under existing non-cancelable leases [Abstract] | |||
2,017 | 695 | ||
2,018 | 655 | ||
2,019 | 479 | ||
2,020 | 427 | ||
2,021 | 230 | ||
Thereafter | 829 | ||
Future minimum rental commitments under existing non-cancelable leases | $ 3,315 | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Minimum term of guarantees (less than one month) | 1 month | ||
Maximum term of guarantees | 3 years | ||
Commitments to extend credit | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Contractual amount | $ 120,485 | 107,084 | |
Standby letters of credit | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Contractual amount | $ 1,201 | $ 3,295 |
Fair Value Measurements and D60
Fair Value Measurements and Disclosure (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deposits: | ||
Junior subordinated debt | $ 8,832 | $ 8,300 |
Quoted Prices In Active Markets for Identical Assets Level 1 | ||
Financial Assets: | ||
Cash and cash equivalents | 113,032 | 125,751 |
Investment securities | 3,716 | 3,812 |
Deposits: | ||
Noninterest-bearing | 262,697 | 262,168 |
NOW and money market | 235,873 | 226,886 |
Savings | 75,068 | 63,592 |
Total deposits | 573,638 | 552,646 |
Significant Other Observable Inputs Level 2 | ||
Financial Assets: | ||
Interest-bearing deposits | 650 | 1,528 |
Investment securities | 53,775 | 27,081 |
Accrued interest receivable | 3,895 | 2,220 |
Deposits: | ||
Accrued interest payable | 76 | 29 |
Significant Unobservable Inputs Level 3 | ||
Financial Assets: | ||
Loans | 557,914 | 503,047 |
Deposits: | ||
Time deposits | 702,743 | 69,031 |
Total deposits | 702,743 | 69,031 |
Junior subordinated debt | 8,832 | 8,300 |
Carrying Amount | ||
Financial Assets: | ||
Cash and cash equivalents | 113,032 | 125,751 |
Interest-bearing deposits | 650 | 1,528 |
Investment securities | 57,491 | 30,893 |
Loans | 561,932 | 505,663 |
Accrued interest receivable | 3,895 | 2,220 |
Deposits: | ||
Noninterest-bearing | 262,697 | 262,168 |
NOW and money market | 235,873 | 226,886 |
Savings | 75,068 | 63,592 |
Time deposits | 102,991 | 69,159 |
Total deposits | 676,629 | 621,805 |
Junior subordinated debt | 8,832 | 8,300 |
Accrued interest payable | 76 | 29 |
Estimated Fair Value | ||
Financial Assets: | ||
Cash and cash equivalents | 113,032 | 125,751 |
Interest-bearing deposits | 650 | 1,528 |
Investment securities | 57,491 | 30,893 |
Loans | 557,914 | 503,047 |
Accrued interest receivable | 3,895 | 2,220 |
Deposits: | ||
Noninterest-bearing | 262,697 | 262,168 |
NOW and money market | 235,873 | 226,886 |
Savings | 75,068 | 63,592 |
Time deposits | 702,743 | 69,031 |
Total deposits | 1,276,381 | 621,677 |
Junior subordinated debt | 8,832 | 8,300 |
Accrued interest payable | $ 76 | $ 29 |
Fair Value Measurements and D61
Fair Value Measurements and Disclosure, Part II (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
AFS Securities: | |||
U.S. Government agencies | $ 23,203 | $ 10,123 | |
U.S Govt collateralized mortgage obligations | 30,572 | 16,958 | |
Mutual Funds | 3,716 | 3,812 | |
Fair Value (Carrying Amount) | 57,491 | 30,893 | |
Impaired Loans: | |||
Commercial and industrial | 301 | 0 | |
Real estate mortgage | 0 | 0 | |
Agricultural | 0 | ||
Total impaired loans | 301 | 0 | |
Other real estate owned | 0 | 9,208 | |
Total | 57,792 | 40,101 | |
Description of Liabilities | |||
Junior subordinated debt | 8,832 | 8,300 | |
Total | 8,832 | 8,300 | |
Impairment of Real Estate | 0 | 188 | $ 0 |
Quoted Prices In Active Markets for Identical Assets Level 1 | |||
AFS Securities: | |||
U.S Govt collateralized mortgage obligations | 0 | 0 | |
Mutual Funds | 3,716 | 3,812 | |
Fair Value (Carrying Amount) | 3,716 | 3,812 | |
Impaired Loans: | |||
Total | 3,716 | 3,812 | |
Description of Liabilities | |||
Total | 0 | 0 | |
Significant Other Observable Inputs Level 2 | |||
AFS Securities: | |||
U.S. Government agencies | 23,203 | 10,123 | |
U.S Govt collateralized mortgage obligations | 30,572 | 16,958 | |
Fair Value (Carrying Amount) | 53,775 | 27,081 | |
Impaired Loans: | |||
Total | 53,775 | 27,081 | |
Description of Liabilities | |||
Total | 0 | 0 | |
Significant Unobservable Inputs Level 3 | |||
Impaired Loans: | |||
Commercial and industrial | 301 | 0 | |
Real estate mortgage | 0 | 0 | |
Agricultural | 0 | ||
Total impaired loans | 301 | 0 | |
Other real estate owned | 0 | 9,208 | |
Total | 301 | 9,208 | |
Description of Liabilities | |||
Junior subordinated debt | 8,832 | 8,300 | |
Total | $ 8,832 | $ 8,300 |
Fair Value Measurements and D62
Fair Value Measurements and Disclosure, Part III (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Commercial and industrial | $ 301 | $ 0 | |
Other real estate owned | 0 | 9,208 | |
Real estate mortgage | 0 | 0 | |
Impairment of Real Estate | 0 | 188 | $ 0 |
Significant Unobservable Inputs Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Commercial and industrial | 301 | 0 | |
Other real estate owned | 0 | 9,208 | |
Real estate mortgage | $ 0 | $ 0 | |
Discounted Cash Flow Valuation Technique | Significant Unobservable Inputs Level 3 | Junior Subordinated Debt | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Weighted average inputs (percent) | 6.46% | 6.82% | |
Mortgages [Member] | Sales Comparison Approach Valuation Technique | Significant Unobservable Inputs Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Weighted average inputs (percent) | 19.10% | 2.00% | |
Mortgages [Member] | Minimum | Sales Comparison Approach Valuation Technique | Significant Unobservable Inputs Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Weighted average inputs (percent) | 7.00% | ||
Mortgages [Member] | Maximum | Sales Comparison Approach Valuation Technique | Significant Unobservable Inputs Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Weighted average inputs (percent) | 29.00% | ||
Fair Value, Measurements, Nonrecurring [Member] | Mortgages [Member] | Sales Comparison Approach Valuation Technique | Significant Unobservable Inputs Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Real estate mortgage | $ 9,208 |
Fair Value Measurements and D63
Fair Value Measurements and Disclosure, Part IV (Details) - Junior Subordinated Debt - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Liabilities: | |||
Beginning balance | $ 8,300 | $ 10,115 | $ 11,125 |
Total losses included in earnings | (518) | (73) | (102) |
Canceled debt | 0 | (1,122) | 0 |
Gain on redemption of liability | 0 | 78 | 0 |
Capitalized interest | 1,050 | (698) | (908) |
Ending balance | 8,832 | 8,300 | 10,115 |
The amount of total losses for the period included in earnings attributable to the change in unrealized gains or losses relating to liabilities still held at the reporting date | $ (518) | $ (73) | $ (102) |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2015 | Jul. 31, 2007 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2014 | Oct. 15, 2013 | Jul. 31, 2013 | Sep. 30, 2009 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||||||
Required tangible shareholders' equity to total tangible assets ratio (percent) | 9.00% | |||||||||
Minimum tier 1 capital to total assets ratio (percent) | 3.00% | |||||||||
Tangible shareholders equity to total tangible assets (percent) | 11.70% | 12.90% | ||||||||
Capital [Abstract] | ||||||||||
Total Capital (to Risk Weighted Assets) Actual | $ 108,868,000 | $ 100,659,000 | $ 91,935,000 | |||||||
Total Capital (to Risk Weighted Assets) For Capital Adequacy Purposes | 50,454,000 | 48,358,000 | 42,536,000 | |||||||
Tier One Risk Based Capital [Abstract] | ||||||||||
Tier 1 Capital (to Risk Weighted Assets) Actual | 100,968,000 | 93,073,000 | 85,234,000 | |||||||
Tier 1 Capital (to Risk Weighted Assets) For Capital Adequacy Purposes | 37,840,000 | 36,269,000 | 21,268,000 | |||||||
Tier one Common Equity [Abstract] | ||||||||||
Tier One Common Equity | 92,600,000 | 85,237,000 | ||||||||
Tier One Common Capital Required for Capital Adequacy | 28,380,000 | 27,201,000 | ||||||||
Tier One Leverage Capital [Abstract] | ||||||||||
Tier 1 Capital (to Average Assets) Actual | 100,968,000 | 93,073,000 | 85,234,000 | |||||||
Tier 1 Capital (to Average Assets) For Capital Adequacy Purposes | $ 31,149,000 | $ 28,747,000 | $ 27,295,000 | |||||||
Risk Based Ratios [Abstract] | ||||||||||
Total Capital (to Risk Weighted Assets) Actual (percent) | 17.26% | 16.65% | 17.29% | |||||||
Total Capital (to Risk Weighted Assets) For Capital Adequacy Purposes (percent) | 8.00% | 8.00% | 8.00% | |||||||
Tier One Risk Based Ratios [Abstract] | ||||||||||
Tier 1 Capital (to Risk Weighted Assets) Actual (percent) | 16.01% | 15.40% | 16.03% | |||||||
Tier 1 Capital (to Risk Weighted Assets) For Capital Adequacy Purposes (percent) | 6.00% | 6.00% | 4.00% | |||||||
Tier One Common Equity Risk Based Ratios [Abstract] | ||||||||||
Tier One Common Capital to Risk Weighted Assets (percent) | 14.68% | 14.10% | ||||||||
Tier One Common Capital Required for Capital Adequacy to Risk Weighted Assets (percent) | 4.50% | 4.50% | ||||||||
Leverage Ratios [Abstract] | ||||||||||
Tier 1 Capital (to Average Assets) Actual (in hundredths) | 12.97% | 12.95% | 12.49% | |||||||
Tier 1 Capital (to Average Assets) For Capital Adequacy Purposes (in hundredths) | 4.00% | 4.00% | 4.00% | |||||||
Amount issued in trust preferred securities | $ 15,000,000 | $ 12,000,000 | $ 15,000,000 | |||||||
Maximum qualified percentage (in hundredths) | 25.00% | |||||||||
Common Equity Tier 1 capital conservation buffer | 2.50% | |||||||||
Common Equity Tier 1 RBC Ratio | 7.00% | |||||||||
Dividends received | $ 464,000 | |||||||||
Junior Subordinated Debt | ||||||||||
Leverage Ratios [Abstract] | ||||||||||
Amount issued in trust preferred securities | 12,000,000 | $ 15,000,000 | ||||||||
Amount of debt canceled | $ 3,000,000 | $ 3,000,000 | $ 3,000,000 | |||||||
Minimum | ||||||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||||||
Addition to leverage ratio (percent) | 1.00% | |||||||||
Maximum | ||||||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||||||
Addition to leverage ratio (percent) | 2.00% | |||||||||
Bank | ||||||||||
Capital [Abstract] | ||||||||||
Total Capital (to Risk Weighted Assets) Actual | $ 108,400,000 | 100,544,000 | $ 89,889,000 | |||||||
Total Capital (to Risk Weighted Assets) For Capital Adequacy Purposes | 50,454,000 | 48,204,000 | 42,536,000 | |||||||
Total Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions | 63,068,000 | 71,870,000 | 53,170,000 | |||||||
Tier One Risk Based Capital [Abstract] | ||||||||||
Tier 1 Capital (to Risk Weighted Assets) Actual | 100,500,000 | 92,981,000 | 83,188,000 | |||||||
Tier 1 Capital (to Risk Weighted Assets) For Capital Adequacy Purposes | 37,840,000 | 36,153,000 | 21,268,000 | |||||||
Tier 1 Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions | 50,454,000 | 57,496,000 | 31,902,000 | |||||||
Tier one Common Equity [Abstract] | ||||||||||
Tier One Common Equity | 100,500,000 | 92,981,000 | ||||||||
Tier One Common Capital Required for Capital Adequacy | 30,630,000 | 27,115,000 | ||||||||
Tier One Common Capital Required to be Well Capitalized | 40,994,000 | 46,716,000 | ||||||||
Tier One Leverage Capital [Abstract] | ||||||||||
Tier 1 Capital (to Average Assets) Actual | 100,500,000 | 92,981,000 | 83,188,000 | |||||||
Tier 1 Capital (to Average Assets) For Capital Adequacy Purposes | 30,956,000 | 28,748,000 | 27,164,000 | |||||||
Tier 1 Capital (to Average Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions | $ 38,695,000 | $ 35,935,000 | $ 33,955,000 | |||||||
Risk Based Ratios [Abstract] | ||||||||||
Total Capital (to Risk Weighted Assets) Actual (percent) | 17.19% | 16.69% | 16.91% | |||||||
Total Capital (to Risk Weighted Assets) For Capital Adequacy Purposes (percent) | 8.00% | 8.00% | 8.00% | |||||||
Total Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions (percent) | 10.00% | 10.00% | 10.00% | |||||||
Tier One Risk Based Ratios [Abstract] | ||||||||||
Tier 1 Capital (to Risk Weighted Assets) Actual (percent) | 15.94% | 15.43% | 15.65% | |||||||
Tier 1 Capital (to Risk Weighted Assets) For Capital Adequacy Purposes (percent) | 6.00% | 6.00% | 4.00% | |||||||
Tier 1 Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions (percent) | 8.00% | 8.00% | 6.00% | |||||||
Tier One Common Equity Risk Based Ratios [Abstract] | ||||||||||
Tier One Common Capital to Risk Weighted Assets (percent) | 15.94% | 15.43% | ||||||||
Tier One Common Capital Required for Capital Adequacy to Risk Weighted Assets (percent) | 4.50% | 4.50% | ||||||||
Tier One Common Capital Required to be Well Capitalized to Risk Weighted Assets (percent) | 6.50% | 6.50% | ||||||||
Leverage Ratios [Abstract] | ||||||||||
Tier 1 Capital (to Average Assets) Actual (in hundredths) | 12.99% | 12.94% | 12.25% | |||||||
Tier 1 Capital (to Average Assets) For Capital Adequacy Purposes (in hundredths) | 4.00% | 4.00% | 4.00% | |||||||
Tier 1 Capital (to Average Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions (in hundredths) | 5.00% | 5.00% | 5.00% | |||||||
Scenario, forecast | ||||||||||
Leverage Ratios [Abstract] | ||||||||||
Common Equity Tier 1 RBC Ratio | 10.50% | 8.50% |
Supplemental Cash Flow Disclo65
Supplemental Cash Flow Disclosures (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash paid during the period for: | |||
Interest | $ 1,362,000 | $ 1,243,000 | $ 2,462,000 |
Income Taxes | 1,710,000 | 3,080,000 | 0 |
Noncash activities: | |||
Loans transferred to foreclosed property | 0 | 226,000 | 1,308,000 |
OREO financed | 3,766,000 | 0 | 0 |
Sale of limited partnership interest financed | 0 | 0 | 3,000,000 |
Unrealized (losses) gains on securities | (648,000) | (265,000) | 18,000 |
Unrealized (losses) gains on unrecognized post retirement costs | $ (22,000) | $ 224,000 | $ (113,000) |
Common Stock Dividend (Details)
Common Stock Dividend (Details) | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | |
Common Stock Dividend [Abstract] | |||||||||
Percentage of stock dividend declared on common stocks outstanding (percent) | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||||||||||
Stock dividend for each of the quarters since the third quarter ended September 30, 2008 (percent) | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | ||
Net income available to common shareholders | $ 7,385 | $ 6,810 | $ 6,216 | ||||||||
Weighted average shares outstanding (shares) | 16,703,672 | 16,702,781 | 16,686,896 | ||||||||
Add: dilutive effect of stock options (shares) | 7,136 | 2,156 | 5,750 | ||||||||
Weighted average shares outstanding adjusted for potential dilution (shares) | 16,710,808 | 16,704,937 | 16,692,646 | ||||||||
Basic (loss) earnings per share (dollars per share) | $ 0.44 | $ 0.41 | $ 0.37 | ||||||||
Diluted (loss) earnings per share (dollars per share) | $ 0.44 | $ 0.41 | $ 0.37 | ||||||||
Anti-dilutive shares excluded from earnings per share calculation (shares) | 52,000 | 136,000 | 154,000 |
Common Stock Repurchase Plan (D
Common Stock Repurchase Plan (Details) - shares | Dec. 31, 2016 | May 16, 2007 |
Common Stock Repurchase Plan [Abstract] | ||
Shares authorized to be repurchased (shares) | 846,127 | |
Repurchase plan percentage of common stock outstanding (percent) | 5.00% | |
Number of shares available for repurchase (shares) | 732,556 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 4,488 | $ 4,488 |
Parent Company Only Financial70
Parent Company Only Financial Statements (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets | ||||
Cash and equivalents | $ 113,032 | $ 125,751 | $ 103,577 | $ 135,212 |
Investment in bank subsidiary | 757 | 917 | ||
Other assets | 6,466 | 6,946 | ||
Total assets | 787,972 | 725,644 | ||
Liabilities | ||||
Junior subordinated debt securities (at fair value) | 8,832 | 8,300 | ||
Total liabilities | 691,318 | 636,009 | ||
Shareholders' Equity | ||||
Common stock, no par value 20,000,000 shares authorized, 16,705,294 and 16,051,406 issued and outstanding, at December 31, 2016 and December 31, 2015, respectively | 56,557 | 52,572 | ||
Retained earnings | 40,701 | 37,265 | ||
Accumulated other comprehensive loss | (604) | (202) | ||
Total shareholders' equity | 96,654 | 89,635 | 82,826 | 76,543 |
Total liabilities and shareholders' equity | $ 787,972 | $ 725,644 | ||
Common stock, par value (in dollars per share) | $ 0 | $ 0 | ||
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 | ||
Common stock, shares issued (in shares) | 16,705,294 | 16,051,406 | ||
Common stock, shares outstanding (in shares) | 16,705,294 | 16,051,406 | ||
Parent Company | ||||
Assets | ||||
Cash and equivalents | $ 148 | $ 140 | $ 224 | $ 66 |
Investment in bank subsidiary | 104,554 | 97,379 | ||
Other assets | 2,525 | 2,326 | ||
Total assets | 107,227 | 99,845 | ||
Liabilities | ||||
Junior subordinated debt securities (at fair value) | 8,832 | 8,300 | ||
Deferred taxes | 1,741 | 1,910 | ||
Total liabilities | 10,573 | 10,210 | ||
Shareholders' Equity | ||||
Common stock, no par value 20,000,000 shares authorized, 16,705,294 and 16,051,406 issued and outstanding, at December 31, 2016 and December 31, 2015, respectively | 56,557 | 52,572 | ||
Retained earnings | 40,701 | 37,265 | ||
Accumulated other comprehensive loss | (604) | (202) | ||
Total shareholders' equity | 96,654 | 89,635 | ||
Total liabilities and shareholders' equity | $ 107,227 | $ 99,845 | ||
Common stock, par value (in dollars per share) | $ 0 | $ 0 | ||
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 | ||
Common stock, shares issued (in shares) | 16,705,294 | 16,051,406 | ||
Common stock, shares outstanding (in shares) | 16,705,294 | 16,051,406 |
Parent Company Only Financial71
Parent Company Only Financial Statements II (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income | |||
Gain on redemption of JR subordinated debentures | $ 0 | $ 78 | $ 0 |
Expense | |||
Interest expense | 1,409 | 1,281 | 1,345 |
Other expense | 2,305 | 2,369 | 2,248 |
Income Before Provision for Taxes on Income | 12,254 | 11,307 | 10,408 |
Income tax benefit | 4,869 | 4,497 | 4,192 |
Net Income | 7,385 | 6,810 | 6,216 |
Parent Company | |||
Income | |||
Loss on fair value of financial liability | (518) | (73) | (102) |
Gain on redemption of JR subordinated debentures | 0 | 78 | 0 |
Dividends from subsidiary | 424 | 2,416 | 1,519 |
Total income | (94) | 2,421 | 1,417 |
Expense | |||
Interest expense | 240 | 225 | 241 |
Other expense | 241 | 256 | 101 |
Total expense | 481 | 481 | 342 |
Income Before Provision for Taxes on Income | (575) | 1,940 | 1,075 |
Income tax benefit | (411) | (196) | (182) |
Undistributed income of subsidiary | 7,549 | 4,674 | 4,959 |
Net Income | $ 7,385 | $ 6,810 | $ 6,216 |
Parent Company Only Financial72
Parent Company Only Financial Statements III (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flows From Operating Activities: | |||
Net Income | $ 7,385 | $ 6,810 | $ 6,216 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Provision for deferred income taxes | 2,199 | 1,640 | 4,816 |
Gain on redemption of JR subordinated debentures | 0 | (78) | 0 |
Net cash provided by operating activities | 9,458 | 9,264 | 9,002 |
Cash Flows From Financing Activities: | |||
Proceeds from exercise of stock options | 6 | 0 | 95 |
Redemption of junior subordinated debenture | 0 | 1,800 | 0 |
Net cash provided by financing activities | 54,830 | 54,632 | 22,979 |
Net increase (decrease) increase in cash and cash equivalents | (12,719) | 22,174 | (31,635) |
Cash and cash equivalents at beginning of year | 125,751 | 103,577 | 135,212 |
Cash and cash equivalents at end of year | 113,032 | 125,751 | 103,577 |
Parent Company | |||
Cash Flows From Operating Activities: | |||
Net Income | 7,385 | 6,810 | 6,216 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Equity in undistributed income of subsidiary | (7,549) | (4,674) | (4,959) |
Provision for deferred income taxes | (169) | (518) | (42) |
Loss on fair value option of financial liability | 518 | 73 | 102 |
Gain on redemption of JR subordinated debentures | 0 | (78) | 0 |
(Increase) decrease in income tax receivable | (198) | 117 | (140) |
Net change in other assets/liabilities | 15 | (14) | (1,114) |
Net cash provided by operating activities | 2 | 1,716 | 63 |
Cash Flows From Financing Activities: | |||
Proceeds from exercise of stock options | 6 | 0 | 95 |
Redemption of junior subordinated debenture | 0 | (1,800) | 0 |
Net cash provided by financing activities | 6 | (1,800) | 95 |
Net increase (decrease) increase in cash and cash equivalents | 8 | (84) | 158 |
Cash and cash equivalents at beginning of year | 140 | 224 | 66 |
Cash and cash equivalents at end of year | $ 148 | $ 140 | $ 224 |