Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 01, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | FNB Bancorp/CA/ | ||
Entity Central Index Key | 1,163,199 | ||
Trading Symbol | fnbg | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding | 4,853,415 | ||
Entity Public Float | $ 102,868,236 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and due from banks | $ 15,758 | $ 12,314 |
Interest-bearing time deposits with financial institutions | 205 | 205 |
Securities available-for-sale, at fair value | 360,105 | 329,207 |
Other equity securities | 7,206 | 6,748 |
Loans, net of deferred loan fees and allowance for loan losses of $10,167 and $9,970 on December 31, 2016 and December 31, 2015 | 782,485 | 722,747 |
Bank premises, equipment, and leasehold improvements, net | 9,837 | 10,202 |
Bank owned life insurance | 16,247 | 15,845 |
Accrued interest receivable | 4,942 | 4,511 |
Other real estate owned, net | 1,427 | 1,026 |
Goodwill | 4,580 | 4,580 |
Prepaid expenses | 856 | 997 |
Other assets | 15,746 | 15,967 |
Total assets | 1,219,394 | 1,124,349 |
Deposits | ||
Demand, noninterest bearing | 296,273 | 263,822 |
Demand, interest bearing | 121,086 | 102,304 |
Savings and money market | 487,763 | 491,633 |
Time | 114,384 | 125,430 |
Total deposits | 1,019,506 | 983,189 |
Federal Home Loan Bank advances | 71,000 | 17,000 |
Note payable | 4,350 | 4,950 |
Accrued expenses and other liabilities | 14,224 | 15,048 |
Total liabilities | 1,109,080 | 1,020,187 |
Commitments and contingencies (Note 11) | ||
Stockholders' equity | ||
Common stock, no par value, authorized 10,000,000 shares; issued and outstanding 4,853,415 shares at December 31, 2016 and 4,541,680 shares at December 31, 2015 | 84,283 | 74,805 |
Retained earnings | 27,577 | 27,816 |
Accumulated other comprehensive earnings, net of tax | (1,546) | 1,541 |
Total stockholders' equity | 110,314 | 104,162 |
Total liabilities and stockholders' equity | $ 1,219,394 | $ 1,124,349 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Net of deferred loan fees and allowance for loan losses (in dollars) | $ 10,167 | $ 9,970 |
Common Stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common Stock, shares issued | 4,853,415 | 4,541,680 |
Common Stock, shares outstanding | 4,853,415 | 4,541,680 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Interest income: | |||
Interest and fees on loans | $ 38,313 | $ 33,235 | $ 31,355 |
Interest and dividends on taxable securities | 4,213 | 3,554 | 3,464 |
Interest on tax-exempt securities | 2,943 | 2,454 | 1,959 |
Interst on deposits with other financial institutions | 44 | 39 | 81 |
Total interest income | 45,513 | 39,282 | 36,859 |
Interest expense: | |||
Interest on deposits | 2,780 | 2,359 | 1,884 |
Interest on FHLB advances | 67 | 9 | 17 |
Interest on note payable | 222 | 229 | 192 |
Total interest expense | 3,069 | 2,597 | 2,093 |
Net interest income | 42,444 | 36,685 | 34,766 |
Provision for (recovery) of loan losses | 150 | (305) | (1,020) |
Net interest income after (recovery of) provision for loan losses | 42,294 | 36,990 | 35,786 |
Noninterest income: | |||
Service charges | 2,461 | 2,501 | 2,548 |
Gain on sale of premises | 0 | 0 | 2,085 |
Net gain on sale of available-for-sale securities | 438 | 339 | 138 |
Earnings on Bank-owned life insurance | 402 | 364 | 359 |
Break-up fee from terminated definitive agreement | 0 | 0 | 500 |
Other income | 1,294 | 1,292 | 959 |
Total noninterest income | 4,595 | 4,496 | 6,589 |
Noninterest expense: | |||
Salaries and employee benefits | 19,474 | 18,523 | 16,731 |
Occupancy expense | 2,528 | 2,517 | 2,773 |
Equipment expense | 1,765 | 1,926 | 1,624 |
Professional fees | 1,363 | 1,471 | 1,845 |
FDIC assessment | 600 | 600 | 655 |
Telephone, postage, supplies | 1,199 | 1,074 | 1,250 |
Advertising expense | 524 | 500 | 414 |
Data processing expense | 657 | 1,076 | 572 |
Low income housing expense | 284 | 283 | 439 |
Surety insurance | 347 | 381 | 278 |
Director expense | 288 | 288 | 252 |
Gain on sale of other real estate owned | 0 | 0 | (220) |
Other real estate owned (recovery) expense | (5) | 4 | 87 |
Other expense | 1,668 | 1,282 | 1,168 |
Total noninterest expense | 30,692 | 29,925 | 27,868 |
Earnings before provision for income taxes | 16,197 | 11,561 | 14,507 |
Provision for income taxes | 5,696 | 3,364 | 5,098 |
Net earnings | 10,501 | 8,197 | 9,409 |
Dividends and discount accretion on preferred stock | 0 | 0 | 170 |
Net earnings available to common stockholders | $ 10,501 | $ 8,197 | $ 9,239 |
Earnings per share available to common stockholders: | |||
Basic | $ 2.18 | $ 1.82 | $ 2.08 |
Diluted | $ 2.12 | $ 1.77 | $ 2.02 |
Weighted average shares outstanding: | |||
Basic | 4,822 | 4,516 | 4,444 |
Diluted | 4,945 | 4,644 | 4,585 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 10,501 | $ 8,197 | $ 9,409 |
Other comprehensive income: | |||
Unrealized holding gain (loss) on available-for-sale securities net of tax (expense) benefit of $ (120), $(2,020), and $3,560 | (2,828) | 173 | 2,905 |
Reclassification adjustment for gains recognized on available-for-sale securities sold, net of tax expense of $139, $57 and $133 | (259) | (200) | (81) |
Total other comprehensive (loss) earnings | (3,087) | (27) | 2,824 |
Total comprehensive earnings | $ 7,414 | $ 8,170 | $ 12,233 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Tax on unrealized holding gain on available-for-sale securities (in dollars) | $ (1,966) | $ (120) | $ (2,020) |
Tax on reclassification adjustment for gain on available-for-sale (in dollars) | $ (179) | $ 139 | $ 57 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Series C Preferred Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance at Dec. 31, 2013 | $ 59,317 | $ 9,450 | $ 26,738 | $ (1,256) | $ 94,249 |
Balance (in Shares) at Dec. 31, 2013 | 3,979 | ||||
Redemption of preferred stock | (9,450) | (9,450) | |||
Net earnings | 9,409 | 9,409 | |||
Other comprehensive loss | 2,824 | 2,824 | |||
Cash dividends declared on common stock | (170) | (170) | |||
Dividends on common stock | (1,780) | (1,780) | |||
Stock dividend of 5% | $ 5,468 | (5,468) | 0 | ||
Stock dividend of 5% (in Shares) | 202 | ||||
Stock options exercised net of shares tendered | $ 1,216 | 1,216 | |||
Stock options exercised net of shares tendered (in Shares) | 78 | ||||
Tax benefit-options exercised | $ 483 | 483 | |||
Stock-based compensation expense | 307 | 307 | |||
Balance at Dec. 31, 2014 | $ 66,791 | 28,729 | 1,568 | 97,088 | |
Balance (in Shares) at Dec. 31, 2014 | 4,259 | ||||
Net earnings | 8,197 | 8,197 | |||
Other comprehensive loss | (27) | (27) | |||
Dividends on common stock | (2,447) | (2,447) | |||
Stock dividend of 5% | $ 6,663 | (6,663) | |||
Stock dividend of 5% (in Shares) | 216 | ||||
Stock options exercised net of shares tendered | $ 924 | 924 | |||
Stock options exercised net of shares tendered (in Shares) | 67 | ||||
Stock-based compensation expense | $ 427 | 427 | |||
Balance at Dec. 31, 2015 | $ 74,805 | 27,816 | 1,541 | 104,162 | |
Balance (in Shares) at Dec. 31, 2015 | 4,542 | ||||
Net earnings | 10,501 | 10,501 | |||
Other comprehensive loss | (3,087) | (3,087) | |||
Cash dividends declared on common stock | (2,890) | (2,890) | |||
Stock dividend of 5% | $ 7,850 | (7,850) | 0 | ||
Stock dividend of 5% (in Shares) | 231 | ||||
Stock options exercised net of shares tendered | $ 1,115 | 1,115 | |||
Stock options exercised net of shares tendered (in Shares) | 80 | ||||
Stock-based compensation expense | $ 513 | 513 | |||
Balance at Dec. 31, 2016 | $ 84,283 | $ 0 | $ 27,577 | $ (1,546) | $ 110,314 |
Balance (in Shares) at Dec. 31, 2016 | 4,853 |
Consolidated Statement of Chan8
Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) | 1 Months Ended | 12 Months Ended | ||
Oct. 22, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Stockholders' Equity [Abstract] | ||||
Stock dividend, percentage | 5.00% | 5.00% | 5.00% | 5.00% |
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 earnings | $ 10,501 | $ 8,197 | $ 9,409 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation, amortization and accretion | 3,923 | 3,458 | 3,479 |
Gain on sale of securities available-for-sale | (438) | (339) | (138) |
Gain on sale of premises | 0 | 0 | (2,085) |
Gain on sale of other real estate owned | 0 | 0 | (220) |
Stock-based compensation expense | 513 | 427 | 307 |
Earnings on bank owned life insurance | (402) | (364) | (359) |
Provision for (recovery of) loan losses | 150 | (305) | (1,020) |
Deferred tax expense (benefit) | (1,150) | (886) | 1,131 |
Change in net deferred loan fees | (114) | (133) | (46) |
Increase (decrease) in accrued interest receivable | (431) | (473) | 83 |
Decrease (increase) in prepaid expense | 141 | 1,856 | (344) |
Decrease (increase) other assets | 1,417 | 1,852 | (2,877) |
Increase in accrued expenses and other liabilities | 583 | (2,414) | 3,780 |
Net cash provided by operating activities | 14,693 | 10,876 | 11,100 |
Cash flows from investing activities: | |||
Proceeds from matured/called/sold securities available-for-sale | 76,979 | 50,247 | 41,699 |
Purchases of securities available-for-sale | (115,541) | (116,640) | (39,953) |
Purchases of other equity securities | (458) | (300) | (469) |
Acquisition, net of cash paid | 0 | (10,855) | 0 |
Maturities of time deposits of other banks | 0 | 2,789 | 2,759 |
Net increase in loans | (59,821) | (45,625) | (26,906) |
Proceeds from sale of other real estate owned | 0 | 0 | 1,461 |
Net investment in other real estate owned | (401) | (263) | (86) |
Proceeds from sales of bank premises, equipment, and leasehold improvements | 0 | 0 | 3,097 |
Purchases of bank premises, equipment, and leasehold improvements | (687) | (287) | (645) |
Net cash used in investing activities | (99,929) | (120,934) | (19,043) |
Cash flows from financing activities: | |||
Net increase in demand and savings deposits | 47,363 | 107,422 | 37,572 |
Net decrease in time deposits | (11,046) | (6,553) | (18,993) |
Net advances (repayment) of FHLB borrowings | 54,000 | 8,000 | (6,000) |
Proceeds from issuance of note payable | 0 | 0 | 6,000 |
Principal repayment on note payable | (600) | (600) | (450) |
Cash dividends paid on common stock | (2,890) | (1,786) | (1,294) |
Cash in lieu of franctional shares | 0 | (13) | 0 |
Exercise of stock options | 1,115 | 924 | 1,216 |
Excess tax benefit from exercised stock options | 0 | 0 | 483 |
Redemption of preferred stock series C | 0 | 0 | (9,450) |
Cash dividends paid on preferred stock series C | 0 | 0 | (170) |
Net cash provided by financing activities | 87,942 | 107,394 | 8,914 |
Net increase (decrease) in cash and cash equivalents | 2,706 | (2,664) | 971 |
Cash and cash equivalents at beginning of year | 12,314 | 14,978 | 14,007 |
Cash and cash equivalents at end of year | 15,758 | 12,314 | 14,978 |
Additional cash flow information: | |||
Interest paid | 3,059 | 2,543 | 2,135 |
Income taxes paid | 6,335 | 4,737 | 2,590 |
Non-cash investing and financing activities: | |||
Accrued dividends | 738 | 648 | 486 |
Change in fair value of available-for-sale securities, net of tax effect | (3,087) | (27) | 2,824 |
Loans to finance sales of other real estate owned | 0 | 0 | 3,400 |
Stock dividends of 5% | 7,850 | 6,663 | 5,468 |
Acquisition: | |||
Assets acquired | 0 | 115,127 | 0 |
Liabilities assumed | $ 0 | $ 93,627 | $ 0 |
Consolidated Statements of Ca10
Consolidated Statements of Cash Flows (Parenthetical) | 1 Months Ended | 12 Months Ended | ||
Oct. 22, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Cash Flows [Abstract] | ||||
Stock dividend, percentage | 5.00% | 5.00% | 5.00% | 5.00% |
1. The Company and Summary of S
1. The Company and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
The Company and Summary of Significant Accounting Policies | FNB Bancorp (the “Company”) is a bank holding company registered under the Bank Holding Company Act of 1956, as amended. The Company was incorporated under the laws of the State of California on February 28, 2001. The consolidated financial statements include the accounts of FNB Bancorp and its wholly-owned subsidiary, First National Bank of Northern California (the “Bank”). The Bank provides traditional banking services in San Mateo, San Francisco and Santa Clara Counties. The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenue and expenses during the reporting period. Actual results could differ from those estimates. The significant accounting estimates are the allowance for loan losses, the valuation of goodwill, the valuation of the allowance for deferred tax assets and fair value determinations such as OREO and impaired loans. A summary of the significant accounting policies applied in the preparation of the accompanying consolidated financial statements follows. (a) Basis of Presentation The accounting and reporting policies of the Company and its wholly-owned subsidiary are in accordance with accounting principles generally accepted in the United States of America. All intercompany balances and transactions have been eliminated. (b) Cash and Cash Equivalents Cash and cash equivalents include cash on hand, amounts due from banks, and federal funds sold. Generally, federal funds are sold for one-day periods. The cash equivalents are readily convertible to known amounts of cash and present insignificant risk of changes in value due to original maturity dates of 90 days or less. Included in cash and cash equivalents are restricted balances at the Federal Reserve Bank of San Francisco which relate to a minimum cash reserve requirement of approximately $1,810,000 and $2,186,000 at December 31, 2016 and 2015, respectively, currently met by vault cash. (c) Investment Securities Investment securities consist of U.S. Treasury securities, U.S. agency securities, obligations of states and political subdivisions, obligations of U.S. corporations, mortgage-backed securities and other securities. At the time of purchase of a security, the Company designates the security as held-to-maturity or available-for-sale, based on its investment objectives, operational needs, and intent to hold. The Company classifies securities as held to maturity only if and when it has the positive intent and ability to hold the security to maturity. The Company does not purchase securities with the intent to engage in trading activity. Held to maturity securities are recorded at amortized cost, adjusted for amortization of premiums or accretion of discounts. The Company did not have any investments in the held-to-maturity portfolio at December 31, 2016 or 2015. Securities available-for-sale are recorded at fair value with unrealized holding gains or losses, net of the related tax effect, reported as a separate component of stockholders’ equity until realized. An impairment charge will be recorded if the Company has the intent to sell a security that is currently in an unrealized loss position or where the Company may be required to sell a security that is currently in an unrealized loss position. A decline in the fair value of any security available-for-sale or held-to-maturity below cost that is deemed other than temporary will cause a charge to earnings to be recorded and the corresponding establishment of a new cost basis for the security. Amortization of premiums and accretion of discounts on debt securities are included in interest income over the life of the related security held-to-maturity or available-for-sale using the effective interest method. Dividend and interest income are recognized when earned. Realized gains and losses for securities classified as available-for-sale and held-to-maturity are included in earnings and are derived using the specific identification method for determining the cost of securities sold. 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 consolidated financial statement date, management assesses each investment to determine if impaired investments are temporarily impaired or if the impairment is other than temporary. This assessment includes a determination of whether the Company intends to sell the security, or if it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis less any current-period credit losses. For debt securities that are considered other than temporarily impaired and that the Company does not intend to sell and will not be required to sell prior to recovery of the amortized cost basis, the amount of impairment is separated into the amount that is credit related (credit loss component) and the amount due to all other factors. The credit loss component is recognized in earnings and is calculated as the difference between the security’s amortized cost basis and the present value of its expected future cash flows. The remaining difference between the security’s fair value and the present value of the future expected cash flows is deemed to be due to factors that are not credit related and is recognized in other comprehensive earnings. (d) Derivatives All derivatives contracts and instruments are recognized as either assets or liabilities in the consolidated balance sheet and measured at fair value. The Company did not hold any derivative contracts at December 31, 2016 or 2015. (e) Loans Loans are reported at the principal amount outstanding, net of deferred loan fees and the allowance for loan losses. An unearned discount on installment loans is recognized as income over the terms of the loans by the interest method. Interest on other loans is calculated by using the simple interest method on the daily balance of the principal amount outstanding. Loan fees net of certain direct costs of origination, which represent an adjustment to interest yield, are deferred and amortized over the contractual term of the loan using the interest method. Loans on which the accrual of interest has been discontinued are designated as nonaccrual loans. Accrual of interest on loans is discontinued either when reasonable doubt exists as to the full and timely collection of interest or principal when a loan becomes contractually past due by 90 days or more with respect to interest or principal. When a loan is placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income. Interest accruals are resumed on such loans only when they are brought fully current with respect to interest and principal and when, in the judgment of management, the loans are estimated to be fully collectible as to both principal and interest. A loan is considered impaired if, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due, according to the contractual terms of the loan agreement. An impaired loan is measured based upon the present value of future cash flows discounted at the loan’s effective rate, the loan’s observable market price, or the fair value of collateral if the loan is collateral dependent. Interest on impaired loans is recognized on a cash basis. If the measurement of the impaired loan is less than the recorded investment in the loan, an impairment is recognized by a charge to the allowance for loan losses. Large groups of smaller balance loans are collectively evaluated for impairment. Restructured loans are loans on which concessions in terms have been granted because of the borrowers’ financial difficulties. Interest is generally accrued on such loans in accordance with the new terms, once the borrower has demonstrated a history of at least six months repayment. A loan is considered to be a troubled debt restructuring when the Company, for economic or legal reasons related to the debtor’s financial difficulties grants a concession to the debtor that makes it easier for the debtor to make their required loan payments. The concession may take the form of a temporary reduction in the interest rate or monthly payment amount due or may extend the maturity date of the loan. Other financial concessions may be agreed to as conditions warrant. Troubled debt restructured loans are accounted for as impaired loans. For an impaired loan that has been restructured, the contractual terms of the loan agreement refer to the contractual terms specified by the original loan agreement, not the contractual terms specified by the restructuring agreement. Loans acquired in business combinations are recorded on a loan-by-loan basis at their estimated fair value. The Company uses third party valuation specialists to determine the estimated fair value on all acquired loans. The Company acquires both performing and impaired loans (loans acquired with evidence of credit quality deterioration at the time of purchase) in its acquisitions. For acquired performing loans, any discount or premium related to fair value adjustments at the time of purchase is recognized as interest income over the estimated life of the loan using the effective yield method. Loans acquired with evidence of credit quality deterioration, at the time of purchase, are accounted for under ASC 310-30 Loans and Debt Securities Acquired with Deteriorated Credit Quality The excess of the contractual amounts due over the cash flows expected to be collected is considered to be the nonaccretable difference. The nonaccretable difference represents the Company’s estimate of the credit losses expected to occur and is considered in determining the fair value of the loans as of the acquisition date. Subsequent to the acquisition date, any increases in expected cash flows over those expected at acquisition date in excess of fair value are adjusted through an increase to the accretable yield on a prospective basis. Any subsequent decreases in cash flows attributable to credit deterioration are recognized by recording additional provision for loan losses. (f) Allowance for Loan Losses The allowance for loan losses is established through a provision for loan losses charged to expense. Loans are charged off against the allowance for loan losses when management believes that the collectability of the principal is unlikely. The allowance is an amount that management believes will be adequate to absorb probable losses inherent in existing loans, standby letters of credit, overdrafts, and commitments to extend credit based on evaluations of collectability and prior loss experience. The evaluations take into consideration such factors as changes in the nature and volume of the portfolio, overall portfolio quality, loan concentrations, specific problem loans and current and anticipated economic conditions that may affect the borrowers’ ability to pay. While management uses these evaluations to determine the level of the allowance for loan losses, future provisions may be necessary based on changes in the factors used in the evaluations. Material estimates relating to the determination of the allowance for loan losses are particularly susceptible to significant change in the near term. Management believes that the allowance for loan losses is adequate as of December 31, 2016. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on changes in economic conditions, and our borrowers’ ability to pay. In addition, the banking regulators, as an integral part of its examination process, periodically review the Bank’s allowance for loan losses. The banking regulators may require the Bank to recognize additions to the allowance based on their judgment about information available to them at the time of their examination. (g) Premises and Equipment Premises and equipment are reported at cost less accumulated depreciation using the straight-line method over the estimated service lives of related assets ranging from 3 to 50 years. Leasehold improvements are amortized over the estimated lives of the respective leases or the service lives of the improvements, whichever is shorter. (h) Other Real Estate Owned Real estate properties acquired through, or in lieu of, loan foreclosure are to be sold and are initially recorded at the lower of the carrying amount of the loan or fair value of the property at the date of foreclosure less selling costs. Subsequent to foreclosure, valuations are periodically performed, and any subsequent revisions in the estimate of fair value are reported as an adjustment to the carrying value of the real estate, provided the adjusted carrying amount does not exceed the original amount at foreclosure. Revenues and expenses from operations and changes in the valuation allowance are included in other operating expenses. The Company may make loans to facilitate the sale of foreclosed real estate. Gains and losses on financed sales are recorded in accordance with the appropriate accounting standard, taking into account the buyer’s initial and continuing investment in the property, potential subordination and transfer of ownership. (i) Goodwill and Other Intangible Assets Goodwill is recognized in a business acquisition transaction when the acquisition purchase price exceeds the fair value of identified tangible and intangible assets and liabilities. Goodwill is subsequently evaluated for possible impairment at least annually. If impairment is determined to exist, it is recorded in the period it is identified. The Company evaluated goodwill at December 31, 2016 and found no impairment. Other intangible assets consist of core deposit and customer intangible assets that are initially recorded at fair value and subsequently amortized over their estimated useful lives, usually no longer than a seven year period. (j) Cash Dividends The Company’s ability to pay cash dividends is subject to restrictions set forth in the California General Corporation Law. Funds for payment of any cash dividends by the Company would be obtained from its investments as well as dividends and/or management fees from the Bank. The Bank’s ability to pay cash dividends is also subject to restrictions imposed under the National Bank Act and regulations promulgated by the Office of the Comptroller of the Currency. (k) Stock Dividend On October 28, 2016, the Company announced that its Board of Directors had declared a five percent (5%) stock dividend which resulted in approximately 231,000 shares, payable at the rate of one share of Common Stock for every twenty (20) shares of Common Stock owned. The stock dividend was paid on December 30, 2016 to shareholders of record on November 30, 2016. The earnings per share data for all periods presented have been adjusted for stock dividends. However, the Consolidated Statement of Changes in Stockholders’ Equity shows the historical roll forward of stock options declared. (l) Other Income Other income includes the following major items: (Dollar amounts in thousands) 2016 2015 2014 Dividend income-other equity securities $ 775 $ 651 $ 398 Rental income-other real estate owned 144 144 199 All other items 375 497 362 Total other income $ 1,294 $ 1,292 $ 959 (m) Other Expense Other expense includes the following major items: (Dollar amounts in thousands) 2016 2015 2014 Dues and memberships $ 146 $ 125 $ 115 Real estate appraisals 75 75 64 Training and seminars 54 66 63 Amortization of deposit premium 207 82 60 Mastercard 104 96 101 Armored Transit 113 113 129 OCC Assessment 269 238 221 Operating Losses 188 97 64 All other items 512 390 351 $ 1,668 $ 1,282 $ 1,168 (n) Income Taxes Deferred income taxes are determined using the asset and liability method. Under this method, the net deferred tax asset or liability is recognized for tax consequences of temporary differences by applying current tax rates to differences between the financial reporting and the tax basis of existing assets and liabilities. Deferred tax assets and liabilities 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. A valuation allowance is established through the provision for income taxes for any deferred tax assets where the utilization of the asset is in doubt. As changes in tax laws or rates are enacted, or as significant changes are made in financial projections, deferred tax assets and liabilities are adjusted through the provision for income taxes. The Company had no unrecognized tax benefits as of December 31, 2016 and 2015, and a $718,000 unrecognized benefit as of December 31, 2014. The unrecognized tax benefit was related to income tax uncertainties surrounding the Bank’s Enterprise Zone net interest deduction. The FIB has reached a settlement with the Franchise Tax Board for the years from 2005 through 2013, and the outcome of these audits is an anticipated net tax settlement of $51,000 against a deposit of $364,314 that was made in 2012. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in tax expense. During the years ended December 31, 2016, 2015 and 2014, the Company believes that any penalties and interest penalties that may exist are not material and the Company has not accrued for them. At December 31, 2016, the Bank had a $1,825,000 net investment in five partnerships, which own low-income affordable housing projects that generate tax benefits in the form of federal and state housing tax credits. As a limited partner investor in these partnerships, the Company receives tax benefits in the form of tax deductions from partnership operating losses and federal and state income tax credits. The federal and state income tax credits are earned over a 10-year period as a result of the investment properties meeting certain criteria and are subject to recapture for noncompliance with such criteria over a 15-year period. The expected benefit resulting from the low-income housing tax credits is recognized in the period for which the tax benefit is recognized in the Company’s consolidated tax returns. These investments are accounted for using the historical cost method less depreciation and amortization and are recorded in other assets on the balance sheet. The Company recognizes tax credits as they are allocated and amortizes the initial cost of the investments over the period that tax credits are allocated to the Company. There is no residual value for the investment at the end of the tax credit allocation period. Cash received from operations of the limited partnership or sale of the properties, if any, will be included in earnings when realized. (o) Earnings per Share Earnings per common share (EPS) are computed based on the weighted average number of common shares outstanding during the period. Basic EPS excludes dilution and is computed by dividing net earnings available to common stockholders (after deducting dividends and related accretion on preferred stock) by the weighted average of common shares outstanding. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. The number of potential common shares included in the quarterly diluted EPS is computed using the average market price during the three months included in the reporting period under the treasury method. The number of potential common shares included in year-to-date diluted EPS is a year-to-date weighted average of potential shares included in each quarterly diluted EPS computation. All common stock equivalents are anti-dilutive when a net loss occurs. A 5% stock dividend was declared in 2016, 2015 and 2014 and prior per share amounts have been adjusted to reflect the 5% stock dividends declared. (Number of shares in thousands) 2016 2015 2014 Weighted average common shares outstanding-used in computing basic earnings per share 4,822 4,742 4,666 Dilutive effect of stock options outstanding, using the treasury stock method 123 134 148 Shares used in computing diluted earnings per share 4,945 4,876 4,814 Anti-dilutive options not included 69 106 71 (p) Stock Option Plans Measurement of the cost of stock options granted is based on the grant-date fair value of each stock option granted using the Black-Scholes valuation model. The cost is then amortized to expense on a straight-line basis over each option’s requisite service period. The amortized expense of the stock option’s fair value has been included in salaries and employee benefits expense on the consolidated statements of earnings for the three years ended December 31, 2016, 2015 and 2014. The expected term of options granted is derived from the output of the option valuation model and represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods within the expected term of the option is based on the U. S. Treasury yield curve in effect at the time of the grant. The Company’s stock has limited liquidity and limited trading activity. Volatility was calculated using historical price changes on a monthly basis over the expected life of the option. (q) Fair Values of Financial Instruments The accounting standards provide for a fair value measurement framework that quantifies fair value estimates by the level of pricing precision. The degree of judgment utilized in measuring the fair value of assets generally correlates to the level of pricing precision. Financial instruments rarely traded or not quoted will generally have a higher degree of judgment utilized in measuring fair value. Pricing precision is impacted by a number of factors including the type of asset or liability, the availability of the asset or liability, the market demand for the asset or liability, and other conditions that were considered at the time of the valuation. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. Transfers between levels of the fair values hierarchy are recognized at the actual date of the event or circumstance that caused the transfer. (r) Bank Owned Life Insurance The Company purchased insurance on the lives of certain executives. The policies accumulate asset values to meet future liabilities including the payment of employee benefits such as the deferred compensation plan. Changes in the cash surrender value are recorded as other noninterest income in the consolidated statements of earnings. (s) Federal Home Loan Bank Borrowings The Bank maintains a collateralized line of credit with the Federal Home Loan Bank (“FHLB”) of San Francisco. Under this line, the Bank may borrow on a short term or a long term (over one year) basis at the then stated interest rate. FHLB advances are recorded and carried at their historical cost. FHLB advances are not transferable and may contain prepayment penalties. In addition to the collateral pledged, the Company is required to hold prescribed amounts of FHLB stock that vary with the usage of FHLB borrowings. (t) Comprehensive Income Certain changes in assets and liabilities, such as unrealized gain and losses on available-for-sale securities are reported as a separate component of the equity section of the consolidated balance sheet, such items, along with net income, are components of comprehensive income. (u) Note Payable The Company obtained a corporate loan with a five year term, for $6,000,000, payable at $50,000 principal monthly, plus interest, and is based on the 3-month LIBOR rate plus 4%. (v) Federal Home Loan Bank Stock Federal Home Loan Bank (FHLB) stock represents an equity interest that does not have a readily determinable fair value because its ownership is restricted and it lacks a market (liquidity). FHLB stock is recorded at cost. (w) Reclassifications Certain prior year information has been reclassified to conform to current year presentation. The reclassifications had no impact on consolidated net earnings or retained earnings. (x) Recent Accounting Pronouncements In January 2016 FASB issued ASU 2016-01, Financial Instruments-overall (subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016 FASB issued ASU 2016-02 , Leases (Topic 842). In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606); Principal versus agent considerations (reporting revenue gross versus net In June 2016 FASB issued ASU 2016-13, Financial Instruments-Credit Losses In August 2016, FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230: Classification of Certain Cash Receipts and Cash Payments. In January 2017, FASB issued ASU 2017-01, Business Combinations, (Topic 805) Clarifying the Definition of a Business. In January 2017, FASB issued ASU 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments – Equity Method and Joint Ventures (Topic 323). In January 2017, FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topc350). Simplifying the Test for Goodwill Impairment. |
2. Acquisition
2. Acquisition | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisition | FNB Bancorp acquired all of the assets and liabilities of America California Bank on September 4, 2015, using the acquisition method of accounting for cash consideration of $21,500,000, and accordingly, the operating results of the acquired entities have been included in the consolidated financial statements from the date of the acquisition. On the date of the acquisition, the fair value of the assets acquired and the liabilities assumed were as follows: America California Bank September 4, (In thousands) 2015 Assets acquired: Cash and due from banks, net of cash paid $ 10,855 Loans 92,962 Premises and equipment, net 62 Bank owned life insurance 2,971 Goodwill 2,739 Core deposit intangible 727 Other assets 4,803 Total assets acquired $ 115,119 Liabilities assumed: Noninterest-bearing deposits $ 14,500 Interest-bearing deposits 75,626 Other liabilities 3,493 Total liabilities assumed: $ 93,619 Merger consideration (all cash) $ 21,500 America California Bank September 4, (In thousands) 2015 Book value of net assets acquired from America California Bank $ 18,138 Fair value adjustments: Loans 2,171 Core deposit intangible asset 727 Time deposits (1,732 ) Other liabilities (243 ) Total purchase accounting adjustments 19,061 Deferred tax liabilities (300 ) Fair value of net assets acquired from America California Bank $ 18,761 Merger consideration $ 21,500 Less fair value of net assets acquired (18,761 ) Goodwill $ 2,739 As a result of this acquisition, the Company recorded $2.7 million in goodwill, which represents the excess of the total purchase price paid over the fair value of the assets acquired, net of the fair values of liabilities assumed. Goodwill reflects the expected value created through the combination of the Company and the acquired company. The entire amount of recorded goodwill in the America California Bank acquisition is expected to be deductible. In the case of the America California Bank acquisition, the Company gains greater customer relationships to the Asian community in San Francisco, we can increase the borrowing to loan customers due to higher loan borrower concentration limits, and we leverage our capital to help improve our return on equity. At December 31, 2016 and 2015, management determined that the market value of our Company exceeded our carrying value; therefore there was no goodwill impairment. The following is a description of the methods used to determine the fair values of significant assets and liabilities at acquisition date: Loans As discussed in Note 1, the fair value of acquired loans are derived from the present values of the expected cash flows for each acquired loan were projected based on contractual cash flows adjusted for expected prepayment, probability of default and expected prepayment, probability of default and expected loss given default, and principal recovery. Prepayment rates were applied to the principal outstanding based on the type of loan acquired. Prepayments were based on a constant prepayment rate (“CPR”) applied over the life of the loan. The Company used a CPR of between 6% and 24%, depending on the characteristics of the loan acquired. Non-credit-impaired loans with similar characteristics were grouped together and were treated in the aggregate when applying the discount rate to the expected cash flows. Aggregation factors, considered included in the type of loan and related collateral, risk classification, fixed or variable interest rate, term of loan and whether or not the loan was amortizing. Core Deposit Intangible The core deposit intangible represents the estimated future benefits of acquired deposits and is recorded separately from the related deposits. The value of the core deposit intangible asset was determined using a discounted cash flow approach to arrive at the cost differential between the core deposits 2021 and In thousands 2017 2018 2019 2020 later Total Core deposit intangible amortization $ 157 $ 1 $ 66 $ 45 $ 101 $ 370 Pro Forma Results of Operations The contribution of the acquired operations of America California Bank to our results of operation for the period September 5, 2015 to December 31, 2015 is as follows: interest income of $1,889,000, interest expense of $152,000, non-interest income of $58,000, non-interest expense of $551,018, and income before taxes of $1,244,000. These amounts include acquisition-related costs, accretion or amortization of the discount or premium on the acquired loans, amortization of the fair value markup on time deposits, and core deposit intangible amortization. America California Bank’s results of operations prior to the acquisition date are not included in our operating results for 2015. The following table presents America California Bank’s revenue and earnings included in the Company’s consolidated statement of comprehensive income for the year ended December 31, 2015 and 2014 on a pro forma basis as if the acquisition date had been December 31 in the year before the pro forma year presented. This pro forma information does not necessarily reflect the results of operations that would have resulted had the acquisition been completed at the beginning of the periods presented, nor is it indicative of the results of operations in future periods. Pro Forma Revenue and Earnings Net (in thousands) Revenue Earnings Actual from September 5, 2015 to December 31, 2015 of America California Bank only $ 1,889 $ 734 2015 supplemental pro forma of the combined entity for the year ended December 31, 2015 42,749 9,458 2014 Supplemental pro forma of the combined entity for the year ended December 31, 2014 44,812 11,404 Acquisition-related expenses are recognized as incurred and continue until all systems have been converted and operational functions become fully integrated. We incurred one-time third party acquisition related expenses in the consolidated statement of comprehensive income during 2015 as follows: December 31, (in thousands) 2015 Data processing expense $ 515 Occupancy expense 342 Surety insurance 35 Equipment expense 2 Total $ 894 |
3. Restricted Cash Balance
3. Restricted Cash Balance | 12 Months Ended |
Dec. 31, 2016 | |
Restricted Cash Disclosure [Abstract] | |
Restricted Cash Balance | Cash and due from banks includes balances with the Federal Reserve Bank of San Francisco (the FRB). The Bank is required to maintain specified minimum average balances with the FRB, based primarily upon the Bank’s deposit balances. As of December 31, 2016 and 2015, the Bank maintained vault cash in excess of the FRB reserve requirement, which was $1,810,000 and $2,186,000, respectively. |
4. Securities Available-for-Sal
4. Securities Available-for-Sale | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities Available-for-Sale | The amortized cost and fair values of securities available-for-sale are as follows: (Dollar amounts in thousands) Amortized Unrealized Unrealized Fair cost gains losses value December 31, 2016: U.S. Treasury securities $ 977 $ 10 $ — $ 987 Obligations of U.S. government agencies 60,773 112 (340 ) 60,545 Mortgage-backed securities 85,709 397 (1,822 ) 84,284 Obligations of states and political subdivisions 151,988 1,458 (1,828 ) 151,618 Corporate debt 63,277 121 (727 ) 62,671 $ 362,724 $ 2,098 $ (4,717 ) $ 360,105 December 31, 2015: U.S. Treasury securities $ 7,004 $ 14 $ (18 ) $ 7,000 Obligations of U.S. government agencies 84,842 168 (401 ) 84,609 Mortgage-backed securities 61,579 641 (557 ) 61,663 Obligations of states and political subdivisions 132,125 3,148 (83 ) 135,190 Corporate debt 41,045 50 (350 ) 40,745 $ 326,595 $ 4,021 $ (1,409 ) $ 329,207 At December 31, 2016, there were no securities in an unrealized loss position for greater than 12 consecutive months, and 227 securities in an unrealized loss position for under 12 months. At December 31, 2015, there were 16 securities in an unrealized loss position for greater than 12 consecutive months, and 76 securities in an unrealized loss position for under 12 months. Management periodically evaluates each security in an unrealized loss position to determine if the impairment is temporary or other-than-temporary. Management has determined that no investment security is other-than-temporarily impaired at December 31, 2016 and 2015. The unrealized losses are due solely to interest rate changes, and the Company does not intend to sell nor expects it will be required to sell investment securities identified with impairments resulting from interest rate declines prior to the earliest of forecasted recovery or the maturity of the underlying investment security. Total < 12 Months Total 12 Months or > Total Total December 31, 2016: Fair Unrealized Fair Unrealized Fair Unrealized (Dollar amounts in thousands) Value Losses Value Losses Value Losses U. S. Treasury securities $ — $ — $ — $ — $ — $ — Obligations of U.S. government agencies 36,828 (340 ) — — 36,828 (340 ) Mortgage-backed securities 67,990 (1,822 ) — — 67,990 (1,822 ) Obligations of states and political subdivisions 84,728 (1,828 ) — — 84,728 (1,828 ) Corporate debt 41,012 (727 ) — — 41,012 (727 ) Total $ 230,558 $ (4,717 ) $ — $ — $ 230,558 $ (4,717 ) Total < 12 Months Total 12 Months or > Total Total December 31, 2015: Fair Unrealized Fair Unrealized Fair Unrealized (Dollar amounts in thousands) Value Losses Value Losses Value Losses U. S. Treasury securities $ 5,042 $ (18 ) $ — $ — $ 5,042 $ (18 ) Obligations of U.S. government agencies 55,382 (339 ) 4,976 (62 ) 60,358 (401 ) Mortgage-backed securities 19,458 (193 ) 16,714 (364 ) 36,172 (557 ) Obligations of states and political subdivisions 14,988 (73 ) 1,856 (10 ) 16,844 (83 ) Corporate debt 27,130 (300 ) 4,449 (50 ) 31,579 (350 ) Total $ 122,000 $ (923 ) $ 27,995 $ (486 ) $ 149,995 $ (1,409 ) The amortized cost and fair value of debt securities as of December 31, 2016, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (Dollar amounts in thousands) Amortized Fair Cost Value Available-for-sale: Due in one year or less $ 15,908 $ 15,921 Due after one through five years 155,565 155,867 Due after five years through ten years 140,293 138,689 Due after ten years 50,958 49,627 $ 362,724 $ 360,104 At December 31, 2016 and 2015, securities with an amortized cost of $116,240,000 and $101,900,000, and fair value of $115,315,000 and $102,336,000, respectively, were pledged as collateral for public deposits and for other purposes required by law. The following table summarizes Other Equity Securities Outstanding: (Dollar amounts in thousands) December 31, December 31, Equity Securities 2016 2015 Federal Home Loan Bank stock $ 5,613 $ 5,164 Federal Reserve Bank 1,268 1,261 Pacific Coast Bankers Bank Stock 145 145 Texas Independent Bank stock 176 174 Community Bank of the Bay stock 4 4 Totals $ 7,206 $ 6,748 As of December 31, 2016 and 2015, the Bank had investments in FRB of $1,268,000 and $1,261,000, respectively, also carried among other equity securities. These investments are carried at cost, and evaluated periodically for impairment. Federal Home Loan Bank and FRB stock can be redeemed at par by the government agencies. These securities cannot be sold to other investors. Management reviews the financial statements, credit rating and other pertinent financial information of these entities in order to determine if impairment has occurred. So long as there is sufficient evidence to support the ability of these entities to continue to redeem their stock, management believes these securities are not impaired. |
5. Loans
5. Loans | 12 Months Ended |
Dec. 31, 2016 | |
Loans | |
Loans | Loans are summarized as follows at December 31: Total FNB Balance Bancorp December 31, (Dollar amounts in thousands) Originated PNCI PCI 2016 Commercial real estate $ 351,261 $ 68,736 $ 1,225 $ 421,222 Real estate construction 43,683 — — 43,683 Real estate multi-family 90,763 15,200 — 105,963 Real estate 1 to 4 family 153,843 16,680 — 170,523 Commercial & industrial 40,140 8,734 — 48,874 Consumer loans 3,533 — — 3,533 Gross loans 683,223 109,350 1,225 793,798 Net deferred loan fees (1,142 ) — — (1,146 ) Allowance for loan losses (10,167 ) — — (10,167 ) Net loans $ 671,914 $ 109,350 $ 1,225 $ 782,485 Total FNB Balance Bancorp December 31 (Dollar amounts in thousands) Originated PNCI PCI 2015 Commercial real estate $ 314,141 $ 84,548 $ 1,304 $ 399,993 Real estate construction 38,909 5,907 — 44,816 Real estate multi-family 47,607 15,990 — 63,597 Real estate 1 to 4 family 153,872 18,092 — 171,964 Commercial & industrial 39,894 12,139 — 52,033 Consumer loans 1,574 — — 1,574 Gross loans 595,997 136,676 1,304 733,977 Net deferred loan fees (1,260 ) — — (1,260 ) Allowance for loan losses (9,970 ) — — (9,970 ) Net loans $ 584,767 $ 136,676 $ 1,304 $ 722,747 Note: PNCI means Purchased, Not Credit Impaired. PCI means Purchased, Credit Impaired. These designations are assigned to the purchased loans on their date of purchase. Once the loan designation has been made, each loan will retain its designation for the life of the loan. A summary of impaired loans, the related allowance for loan losses, average investment and income recognized on impaired loans follows. The following tables include originated and purchased non-credit impaired loans. Recorded Investment in Loans at December 31, 2016 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to 4 Commercial Real Estate Construction family family & industrial Consumer Total Loans: Ending balance $ 421,222 $ 43,683 $ 105,963 $ 170,523 $ 48,874 $ 3,533 $ 793,798 Ending balance: individually evaluated for impairment $ 10,023 $ 843 $ — $ 3,530 $ 1,065 $ — $ 15,461 Ending balance: collectively evaluated for impairment $ 411,199 $ 42,840 $ 105,963 $ 166,993 $ 47,809 $ 3,533 $ 778,337 Recorded Investment in Loans at December 31, 2015 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to 4 Commercial Real Estate Construction family family & industrial Consumer Total Loans: Ending balance $ 399,993 $ 44,816 $ 63,597 $ 171,964 $ 52,033 $ 1,574 $ 733,977 Ending balance: individually evaluated for impairment $ 11,292 $ 2,154 $ — $ 4,218 $ 1,782 $ — $ 19,446 Ending balance: collectively evaluated for impairment $ 388,701 $ 42,662 $ 63,597 $ 167,746 $ 50,251 $ 1,574 $ 714,531 Recorded Investment in Loans at December 31, 2014 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real Estate Construction family 4 family & industrial Consumer Total Loans: Ending balance $ 318,427 $ 39,771 $ 53,824 $ 128,732 $ 51,662 $ 1,448 $ 593,864 Ending balance: individually evaluated for impairment $ 9,530 $ 2,373 $ — $ 4,333 $ 2,315 $ 64 $ 18,615 Ending balance: collectively evaluated for impairment $ 308,897 $ 37,398 $ 53,824 $ 124,399 $ 49,347 $ 1,384 $ 575,249 Impaired Loans As of and for the year ended December 31, 2016 Unpaid Average (Dollar amounts in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no related allowance recorded Commercial real estate $ 8,516 $ 9,026 $ — $ 9,730 $ 716 Commercial real estate construction 843 843 — 857 53 Residential- 1 to 4 family 678 678 — 685 Commercial and industrial 120 120 — 322 25 Consumer — — — — — Total 10,157 10,667 — 11,594 794 With an allowance recorded Commercial real estate $ 1,507 $ 1,507 $ 50 $ 1,528 $ 89 Residential- 1 to 4 family 2,852 2,852 442 3,202 157 Commercial and industrial 945 945 96 1,240 1 Consumer — — — — — Total 5,304 5,304 588 5,970 247 Total Commercial real estate $ 10,023 $ 10,533 $ 50 $ 11,258 $ 805 Commercial real estate construction 843 843 — 857 53 Residential- 1 to 4 family 3,530 3,530 442 3,887 157 Commercial and industrial 1,065 1,065 96 1,562 26 Consumer — — — — — Grand total $ 15,461 $ 15,971 $ 588 $ 17,564 $ 1,041 Impaired Loans As of and for the year ended December 31, 2015 Unpaid Average (Dollar amounts in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no related allowance recorded Commercial real estate $ 8,169 $ 9,271 $ — $ 8,379 $ 282 Commercial real estate construction 2,154 2,337 — 2,264 130 Residential- 1 to 4 family 457 457 — 460 36 Commercial and industrial 524 524 — 731 27 Total 11,304 12,589 — 11,834 475 With an allowance recorded Commercial real estate $ 2,634 $ 2,638 $ 96 $ 2,664 $ 160 Residential- 1 to 4 family 3,761 3,782 479 3,786 149 Commercial and industrial 1,258 1,497 182 1,484 7 Total 7,653 7,917 757 7,934 316 Total Commercial real estate $ 10,803 $ 11,909 $ 96 $ 11,043 $ 442 Commercial real estate construction 2,154 2,337 — 2,264 130 Residential- 1 to 4 family 4,218 4,239 479 4,246 185 Commercial and industrial 1,782 2,021 182 2,215 34 Grand total $ 18,957 $ 20,506 $ 757 $ 19,768 $ 791 Impaired Loans As of and for the year ended December 31, 2014 Unpaid Average (Dollar amounts in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no related allowance recorded Commercial real estate $ 4,462 $ 5,333 $ — $ 4,473 $ 304 Commercial real estate construction 2,373 2,556 — 1,846 150 Residential- 1 to 4 family 1,594 1,737 — 1,379 67 Commercial and industrial 582 939 — 788 54 Consumer — — — — — Total 9,011 10,565 — 8,486 575 With an allowance recorded Commercial real estate $ 5,068 $ 5,071 $ 101 $ 5,127 $ 258 Residential- 1 to 4 family 2,739 2,754 432 2,759 111 Commercial and industrial 1,733 2,100 225 1,907 33 Consumer 64 64 8 67 5 Total 9,604 9,989 766 9,860 407 Total Commercial real estate $ 9,530 $ 10,404 $ 101 $ 9,600 $ 562 Commercial real estate construction 2,373 2,556 — 1,846 150 Residential- 1 to 4 family 4,333 4,491 432 4,138 178 Commercial and industrial 2,315 3,039 225 2,695 87 Consumer 64 64 8 67 5 Grand total $ 18,615 $ 20,554 $ 766 $ 18,346 $ 982 There has been no additional impairment recognized on previous credit impairment loans subsequent to acquisition. Nonaccrual loans totaled $6,647,000 and $7,915,000 as of December 31, 2016 and 2015. Not all impaired loans are in a nonaccrual status. The majority of the difference between impaired loans and nonaccrual loans represents loans that are restructured and performing under modified loan agreements, and where principal and interest is considered to be collectible. Loans on Nonaccrual Status as of (Dollar amounts in thousands) December 31, December 31, 2016 2015 Commercial real estate $ 5,553 $ 6,021 Real estate 1 to 4 family 149 636 Commercial & industrial 945 1,258 Consumer — — Total $ 6,647 $ 7,915 Interest income on impaired loans of $1,041,000, $791,000 and $982,000 was recognized based upon cash payments received in 2016, 2015, and 2014, respectively. The amount of interest on impaired loans not collected in 2016, 2015 and 2014, was $569,000, $460,000 and $91,000, respectively. The cumulative amount of unpaid interest on impaired loans was $3,973,000, $3,405,000 and $2,944,000 at December 31, 2016, 2015 and 2014, respectively. The following is a summary of the principal amounts outstanding for troubled debt restructurings added during the years ended December 31, 2016 and 2015. Total troubled debt restructurings outstanding at year end (dollars in thousands) December 31, 2016 December 31, 2015 Non- Non- Accrual accrual Total Accrual accrual Total status status modifications status status modifications Commercial real estate $ 4,466 $ 4,494 $ 8,960 $ 4,775 $ — $ 4,775 Real estate construction — — — 1,283 — 1,283 Real estate 1 to 4 family 3,381 — 3,381 3,583 2,060 5,643 Commercial & industrial 120 902 1,022 524 1,043 1,567 Total $ 7,967 $ 5,396 $ 13,363 $ 10,165 $ 3,103 $ 13,268 Modifications For the Year Ended December 31, 2016 Pre- Post- Modification Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment (Dollar amounts in thousands) Commercial real estate 2 3,527 3,527 Total 2 $ 3,527 $ 3,527 Modifications For the Year Ended December 31, 2015 Pre- Post- Modification Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment (Dollar amounts in thousands) Real estate 1 to 4 family 1 $ 472 $ 472 Total 1 $ 472 $ 472 Modifications For the Year Ended December 31, 2014 Commercial Pre- Post- Modification Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment (Dollar amounts in thousands) Commercial real estate 3 $ 1,442 $ 1,442 Real estate 1 to 4 family 1 567 567 Total 4 $ 2,009 $ 2,009 During the years ended December 31, 2016, 2015 and 2014, no loans defaulted within twelve months following the date of restructure. All restructurings were a modification of interest rate and/or payment. There were no principal reductions granted. Allowance for Credit Losses As of and For the Year Ended December 31, 2016 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to 4 Commercial Real estate Construction family family & industrial Consumer Total Allowance for credit losses Beginning balance $ 6,059 $ 589 $ 243 $ 2,176 $ 853 $ 50 $ 9,970 Charge-offs — — — (36 ) (164 ) (18 ) (218 ) Recoveries 8 — — 53 204 — 265 Provision 325 28 146 (111 ) (243 ) 5 150 Ending balance $ 6,392 $ 617 $ 389 $ 2,082 $ 650 $ 37 $ 10,167 Ending balance: individually evaluated for impairment $ 50 $ — $ — $ 442 $ 96 $ — $ 588 Ending balance: collectively evaluated for impairment $ 6,342 $ 617 $ 389 $ 1,640 $ 554 $ 37 $ 9,579 Allowance for Credit Losses As of and For the Year Ended December 31, 2015 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to 4 Commercial Real estate Construction family family & industrial Consumer Total Allowance for credit losses Beginning balance $ 5,549 $ 849 $ 206 $ 1,965 $ 1,073 $ 58 $ 9,700 Charge-offs — — — (45 ) — (36 ) (81 ) Recoveries 576 — — 15 60 5 656 Provision (66 ) (260 ) 37 241 (280 ) 23 (305 ) Ending balance $ 6,059 $ 589 $ 243 $ 2,176 $ 853 $ 50 $ 9,970 Ending balance: individually evaluated for impairment $ 96 $ — $ — $ 479 $ 182 $ — $ 757 Ending balance: collectively evaluated for impairment $ 5,963 $ 589 $ 243 $ 1,697 $ 671 $ 50 $ 9,213 Allowance for Credit Losses As of and For the Year Ended December 31, 2014 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to 4 Commercial Real estate Construction family family & industrial Consumer Total Allowance for credit losses Beginning balance $ 5,763 $ 734 $ 293 $ 1,788 $ 1,237 $ 64 $ 9,879 Charge-offs (83 ) (183 ) — (62 ) (28 ) (26 ) (382 ) Recoveries 1,062 — — 3 154 4 1,223 (Recovery of) / provision forr (1,193 ) 298 (87 ) 236 (290 ) 16 (1,020 ) Ending balance $ 5,549 $ 849 $ 206 $ 1,965 $ 1,073 $ 58 $ 9,700 Ending balance: individually evaluated for impairment $ 101 $ — $ — $ 432 $ 225 $ 8 $ 766 Ending balance: collectively evaluated for impairment $ 5,448 $ 849 $ 206 $ 1,533 $ 848 $ 50 $ 8,934 Age Analysis of Past Due Loans As of December 31, 2016 (Dollar amounts in thousands) 30-59 60-89 Days Days Over Total Past Past 90 Past Total Originated Due Due Days Due Current Loans Commercial real estate $ 835 $ 2 $ — $ 837 $ 350,424 $ 351,261 Real estate construction 645 — 645 43,038 43,683 Real estate multi family — — — — 90,763 90,763 Real estate 1 to 4 family 1,365 61 74 1,500 152,343 153,843 Commercial & industrial 241 — 945 1,186 38,954 40,140 Consumer — — — — 3,533 3,533 Total $ 3,086 $ 63 $ 1,019 $ 4,168 $ 679,055 $ 683,223 Purchased Not credit impaired Commercial real estate $ 1,869 $ 1,909 $ 550 4,328 $ 64,408 $ 68,736 Real estate multi-family — — — — 15,200 15,200 Real estate 1 to 4 family — — 75 75 16,605 16,680 Commercial & industrial 285 — — 285 8,449 8,734 Total $ 2,154 $ 1,909 $ 625 $ 4,688 $ 104,622 $ 109,350 Purchased Credit impaired Commercial real estate $ — $ — $ — $ — $ 1,225 $ 1,225 Real estate construction — — — — — — Real estate multi-family — — — — — — Real estate 1 to 4 family — — — — — — Commercial & industrial — — — — — — Total $ — $ — $ — $ — $ 1,225 $ 1,225 Age Analysis of Past Due Loans As of December 31, 2015 (Dollar amounts in thousands) 30-59 60-89 Days Days Over Total Past Past 90 Past Total Originated Due Due Days Due Current Loans Commercial real estate $ 1,541 $ — $ — $ 1,541 $ 312,600 $ 314,141 Real estate construction 706 725 — 1431 37,478 38,909 Real estate multi family — — — — 47,607 47,607 Real estate 1 to 4 family 1,363 737 71 2,171 151,701 153,872 Commercial & industrial — — 1,258 1,258 38,636 39,894 Consumer — — — — 1,574 1,574 Total $ 3,610 $ 1,462 $ 1,329 $ 6,401 $ 589,596 $ 595,997 Purchased Not credit impaired Commercial real estate $ — $ — $ 3,810 — $ 84,548 $ 84,548 Real estate construction — — — — 5,907 5,907 Real estate multi-family — — — — 15,990 15,990 Real estate 1 to 4 family 175 — — 175 17,917 18,092 Commercial & industrial 70 — — 70 12,069 12,139 Total $ 245 $ — $ 3,810 $ 245 $ 136,431 $ 136,676 Purchased Credit impaired Commercial real estate $ — $ — $ — $ — $ 1,304 $ 1,304 Real estate construction — — — — — — Real estate multi-family — — — — — — Real estate 1 to 4 family — — — — — — Commercial & industrial — — — — — — Total $ — $ — $ — $ — $ 1,304 $ 1,304 Risk rating system Loans to borrowers graded as pass or pooled loans represent loans to borrowers of acceptable or better credit quality. They demonstrate sound financial positions, repayment capacity and credit history. They have an identifiable and stable source of repayment. Special mention loans have potential weaknesses that deserve management’s attention. If left uncorrected these potential weaknesses may result in a deterioration of the repayment prospects for the asset or in the Bank’s credit position at some future date. These assets are “not adversely classified” and do not expose the Bank to sufficient risk to warrant adverse classification. Substandard loans are inadequately protected by current sound net worth, paying capacity of the borrower, or pledged collateral. Loans are normally classified as Substandard when there are unsatisfactory characteristics causing more than acceptable levels of risk. A substandard loan normally has one or more well-defined weakness that could jeopardize the repayment of the debt. For example, a) cash flow deficiency, which may jeopardize future payments; b) sale of non-collateral assets has become primary source of repayment; c) the borrower is bankrupt; or d) for any other reason, future repayment is dependent on court action. Doubtful loans represent credits with weakness inherent in the Substandard classification and where collection or liquidation in full is highly questionable. To be classified Doubtful, there must be specific pending factors which prevent the Loan Review Officer from determining the amount of loss contained in the credit. When the amount of loss can be reasonably estimated, that amount is classified as “loss” and the remainder is classified as Substandard. Real Estate – Multi-Family Our multi-family commercial real estate loans are secured by multi-family properties located primarily in San Mateo and San Francisco Counties. These loans are made to investors where the primary source of loan repayment is from cash flows generated by the properties, through rent collections. The borrowers’ promissory notes are secured with recorded liens on the underlying properties. The borrowers would normally also be required to personally guarantee repayment of the loans. The Bank uses conservative underwriting standards in reviewing applications for credit. Generally, our borrowers have multiple sources of income, so if cash flow generated from the property declines, at least in the short term, the borrowers can normally cover these short term cash flow deficiencies from their available cash reserves. Risk of loss to the Bank is increased when there are cash flow decreases sufficiently large and for such a prolonged period of time that loan payments can no longer be made by the borrowers. Commercial Real Estate Loans Commercial Real Estate loans consist of loans secured by non-farm, non-residential properties, including, but not limited to industrial, hotel, assisted care, retail, office and mixed use buildings. Our commercial real estate loans are made primarily to investors or small businesses where our primary source of repayment is from cash flows generated by the properties, either through rent collection or business profits. The borrower’s promissory notes are secured with recorded liens on the underlying property. The borrowers would normally also be required to personally guarantee repayment of the loan. The Bank uses conservative underwriting standards in reviewing applications for credit. Generally, our borrowers have multiple sources of income, so if cash flow generated from the property declines, at least in the short term, the borrowers can normally cover these short term cash flow deficiencies from their available cash reserves. Risk of loss to the Bank is increased when there are cash flow decreases sufficiently large and for such a prolonged period of time that loan payments can no longer be made by the borrowers. Real Estate Construction Loans Our real estate construction loans are generally made to borrowers who are rehabilitating a building, converting a building use from one type of use to another, or developing land and building residential or commercial structures for sale or lease. The borrower’s promissory notes are secured with recorded liens on the underlying property. The borrowers would normally also be required to personally guarantee repayment of the loan. The Bank uses conservative underwriting standards in reviewing applications for credit. Generally, our borrowers have sufficient resources to make the required construction loan payments during the construction and absorption or lease-up period. After construction is complete, the loans are normally paid off from proceeds from the sale of the building or through a refinance to a commercial real estate loan. Risk of loss to the Bank is increased when there are material construction cost overruns, significant delays in the time to complete the project and/or there has been a material drop in the value of the projects in the marketplace since the inception of the loan. Real Estate-1 to 4 family Loans Our residential real estate loans are generally made to borrowers who are buying or refinancing their primary personal residence or a rental property of 1-4 single family residential units. The Bank uses conservative underwriting standards in reviewing applications for credit. Risk of loss to the Bank is increased when borrowers lose their primary source of income and/or property values decline significantly. Commercial and Industrial Loans Our commercial and industrial loans are generally made to small businesses to provide them with at least some of the working capital necessary to fund their daily business operations. These loans are generally either unsecured or secured by fixed assets, accounts receivable and/or inventory. The borrowers would normally also be required to personally guarantee repayment of the loan. The Bank uses conservative underwriting standards in reviewing applications for credit. Risk of loss to the Bank is increased when our small business customers experience a significant business downturn, incur significant financial losses, or file for relief from creditors through bankruptcy proceedings. Consumer Loans Our consumer and installment loans generally consist of personal loans, credit card loans, automobile loans or other loans secured by personal property. The Bank uses conservative underwriting standards in reviewing applications for credit. Risk of loss to the Bank is increased when borrowers lose their primary source of income, or file for relief from creditors through bankruptcy proceedings. Age Analysis of Past Due Loans As of December 31, 2016 (Dollar amounts in thousands) 30-59 60-89 Days Days Over Total Past Past 90 Past Total Originated Due Due Days Due Current Loans Commercial real estate $ 835 $ 2 $ — $ 837 $ 350,424 $ 351,261 Real estate construction 645 — 645 43,038 43,683 Real estate multi family — — — — 90,763 90,763 Real estate 1 to 4 family 1,365 61 74 1,500 152,343 153,843 Commercial & industrial 241 — 945 1,186 38,954 40,140 Consumer — — — — 3,533 3,533 Total $ 3,086 $ 63 $ 1,019 $ 4,168 $ 679,055 $ 683,223 Purchased Not credit impaired Commercial real estate $ — $ — $ 5,553 5,553 $ 63,183 $ 68,736 Real estate multi-family — — — — 15,200 15,200 Real estate 1 to 4 family — — 75 75 16,605 16,680 Commercial & industrial 285 — — 285 8,449 8,734 Total $ 285 $ — $ 5,628 $ 5,913 $ 103,437 $ 109,350 Purchased Credit impaired Commercial real estate $ — $ — $ — $ — $ 1,225 $ 1,225 Real estate construction — — — — — — Real estate multi-family — — — — — — Real estate 1 to 4 family — — — — — — Commercial & industrial — — — — — — Total $ — $ — $ — $ — $ 1,225 $ 1,225 Age Analysis of Past Due Loans As of December 31, 2015 (Dollar amounts in thousands) 30-59 60-89 Days Days Over Total Past Past 90 Past Total Originated Due Due Days Due Current Loans Commercial real estate $ 1,541 $ — $ — $ 1,541 $ 312,600 $ 314,141 Real estate construction 706 725 — 1431 37,478 38,909 Real estate multi family — — — — 47,607 47,607 Real estate 1 to 4 family 1,363 737 71 2,171 151,701 153,872 Commercial & industrial — — 1,258 1,258 38,636 39,894 Consumer — — — — 1,574 1,574 Total $ 3,610 $ 1,462 $ 1,329 $ 6,401 $ 589,596 $ 595,997 Purchased Not credit impaired Commercial real estate $ — $ — $ 3,810 — $ 84,548 $ 84,548 Real estate construction — — — — 5,907 5,907 Real estate multi-family — — — — 15,990 15,990 Real estate 1 to 4 family 175 — — 175 17,917 18,092 Commercial & industrial 70 — — 70 12,069 12,139 Total $ 245 $ — $ 3,810 $ 245 $ 136,431 $ 136,676 Purchased Credit impaired Commercial real estate $ — $ — $ — $ — $ 1,304 $ 1,304 Real estate construction — — — — — — Real estate multi-family — — — — — — Real estate 1 to 4 family — — — — — — Commercial & industrial — — — — — — Total $ — $ — $ — $ — $ 1,304 $ 1,304 Credit Quality Indicators As of December 31, 2016 (Dollar amounts in thousands) Special Sub- Total Originated Pass mention standard Doubtful loans Commercial real estate $ 348,785 $ 902 $ 1,574 $ — $ 351,261 Real estate construction 42,840 — 843 — 43,683 Real estate multi-family 90,763 — — — 90,763 Real estate 1 to 4 family 153,769 — 74 — 153,843 Commercial & industrial 39,752 — 384 4 40,140 Consumer loans 3,533 — — — 3,533 Totals $ 679,442 $ 902 $ 2,875 $ 4 $ 683,223 Purchased Not credit impaired Commercial real estate $ 61,705 $ — $ 7,031 $ — $ 68,736 Real estate multi-family 15,200 — — — 15,200 Real estate 1 to 4 family 16,605 — 75 — 16,680 Commercial & industrial 8,644 — 90 — 8,734 Total $ 102,154 $ — $ 7,196 $ — $ 109,350 Purchased Credit impaired Commercial real estate $ 1,225 Total $ 1,225 Credit Quality Indicators As of December 31, 2015 (Dollar amounts in thousands) Special Sub- Total Originated Pass mention standard Doubtful loans Commercial real estate $ 308,164 $ 1,857 $ 4,120 $ — $ 314,141 Real estate construction 37,850 — 1,059 — 38,909 Real estate multi-family 47,607 — — — 47,607 Real estate 1 to 4 family 153,285 — 587 — 153,872 Commercial & industrial 39,287 — 451 156 39,894 Consumer loans 1,574 — — — 1,574 Totals $ 587,767 $ 1,857 $ 6,217 $ 156 $ 595,997 Purchased Not credit impaired Commercial real estate $ 68,936 $ 3,455 $ 12,145 $ 12 $ 84,548 Real estate construction 5,907 — — — 5,907 Real estate multi-family 15,990 — — — 15,990 Real estate 1 to 4 family 18,092 — — — 18,092 Commercial & industrial 12,044 — 95 — 12,139 Total $ 120,969 $ 3,455 $ 12,240 $ 12 $ 136,676 Purchased Credit impaired Commercial real estate $ 1,304 Total $ 1,304 Purchased credit impaired loans are not included in the Company’s risk-rated methodology. |
6. Foreclosed Assets
6. Foreclosed Assets | 12 Months Ended |
Dec. 31, 2016 | |
Finance Loan And Lease Receivables Held For Investments Foreclosed Assets [Abstract] | |
Foreclosed Assets | A summary of the activity in the balance of foreclosed assets follows: Year ended December 31, (Dollar amounts in thousands) 2016 2015 2014 Beginning foreclosed asset balance, net $ 1,026 $ 763 $ 5,318 Additions/transfers from loans 401 263 86 Disposition/sales — — (4,641 ) Valuation adjustments — — — Ending foreclosed asset balance, net $ 1,427 $ 1,026 $ 763 Ending valuation allowance $ — $ — $ — Ending number of foreclosed properties 1 1 1 Proceeds from sale of foreclosed properties $ — $ — $ 1,461 Loans to finance sale of foreclosed properties $ — — 3,400 Gain on sale of foreclosed properties $ — $ — $ 220 |
7. Related Party Transactions
7. Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | In the ordinary course of business, the Bank made loans and advances under lines of credit to directors, officers, and their related interests. The Bank’s policies require that all such loans be made at substantially the same terms as those prevailing at the time for comparable transactions with unrelated parties and do not involve more than normal risk or unfavorable features. The following summarizes activities of loans to such parties at December 31: (Dollar amounts in thousands) 2016 2015 Balance, beginning of year $ 3,988 $ 9,075 Additions 2,474 1,602 Repayments (65 ) (6,689 ) Balance, end of year $ 6,397 $ 3,988 2016 2015 Related party deposits $ 3,316 $ 4,441 Bank Premises, Equipment, and Leasehold Improvements Bank premises, equipment and leasehold improvements are stated at cost, less accumulated depreciation and amortization, and are summarized as follows at December 31: (Dollar amounts in thousands) 2016 2015 Buildings $ 10,099 $ 9,885 Equipment & furniture 8,803 8,785 Leasehold improvements 1,496 1,496 20,398 20,166 Accumulated depreciation and amortization (15,275 ) (14,663 ) 5,123 5,503 Land 4,714 4,699 $ 9,837 $ 10,202 Depreciation and amortization expense for the years ended December 31, 2016, 2015, and 2014 was $1,051,000, $1,098,000, and $1,194,000 respectively. |
8. Deposits
8. Deposits | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure Text Block [Abstract] | |
Deposits | The aggregate amount of time certificates, each with a minimum denomination of $250,000 or more, was $46,553,000 and $50,988,000 at December 31, 2016 and 2015, respectively. At December 31, 2016, the scheduled maturities of all time certificates of deposit are as follows: (Dollar amounts in thousands) Year ending December 31: Under $250,000 $250,000 or more Total 2017 $ 44,760 $ 41,301 $ 86,061 2018 12,900 3,141 16,041 2019 9,191 2,111 11,302 2020 190 — 190 2021 790 — 790 $ 67,831 $ 46,553 $ 114,384 |
9. Federal Home Loan Bank Advan
9. Federal Home Loan Bank Advances and Note Payable | 12 Months Ended |
Dec. 31, 2016 | |
Federal Home Loan Bank Advances Disclosure [Abstract] | |
Federal Home Loan Bank Advances | As of December 31, 2016, there were $71,000,000 Federal Home Loan Bank (“FHLB”) borrowings outstanding, consisting of $10,000,000 at 0.61% due January 3, 2017, $7,000,000 at 0.55% due January 5, 2017, $7,000,000 at 0.49% due January 9, 2017, $11,000,000 at 0.63% due January 27, 2017, $6,000,000 at 0.63% due January 30, 2017, $10,000,000 at 0.61% due January 30, 2017, and $20,000,000 at 0.67% due February 28, 2017. At December 31, 2015, there were $17,000,000 in FHLB borrowings outstanding, consisting of $2,000,000 at 0.27% due January 4, 2016 and $15,000,000 at 0.42% due January 11, 2016. At December 31, 2016, the Bank had a maximum borrowing capacity under FHLB advances of $452,318,000, of which $380,809,000 was available. The FHLB advances are secured by a blanket collateral agreement pledge of FHLB stock and certain other qualifying collateral, such as commercial and mortgage loans. Interest rates are at the prevailing rate when advances are made. At December 31, 2016 the Company had a term loan outstanding of $4,350,000 that matures on March 31, 2019. Monthly payments consist of $50,000 in principle + interest which is adjustable at 3 month LIBOR plus 400 basis points. All the outstanding stock of the Bank is pledged as collateral for this loan. |
10. Commitments and Contingenci
10. Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Operating Lease Commitments The Bank leases a portion of its facilities and equipment under non-cancelable operating leases expiring at various dates through 2024. Some of these leases provide that the Company pay taxes, maintenance, insurance, and other occupancy expenses applicable to leased premises. The minimum rental commitments under the operating leases as of December 31, 2016 are as follows: (Dollars in thousands) 2017 $ 1,117 2018 556 2019 359 2020 247 2021 251 Thereafter 653 $ 3,183 Total rent expense for operating leases was $1,127,000, $1,092,000, and $1,161,000, in 2016, 2015, and 2014, respectively. Legal Commitments The Bank is engaged in various lawsuits either as plaintiff or defendant in the ordinary course of business and, in the opinion of management, based upon the advice of counsel, the ultimate outcome of these lawsuits does not expect to have a material effect on the Bank’s financial condition or results of operations. |
11. Salary Deferral Plan
11. Salary Deferral Plan | 12 Months Ended |
Dec. 31, 2016 | |
Salary Deferral Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Salary Deferral Plan | The Company maintains a salary deferral 401(k) plan covering substantially all employees, known as the FNB Bancorp Savings Plan (the “Plan”). The Plan allows employees to make contributions to the Plan up to a maximum allowed by law, and the Company’s contribution is discretionary. Beginning in 2008, the Board approved a safe harbor election related to the Plan which requires the Company to contribute 3% of qualifying employees’ wages as a safe harbor contribution. The Bank’s accrued contribution to the Plan on the safe harbor basis for the years ended December 31, 2016, 2015, and 2014 was $315,000, $355,000, and $358,000, respectively. In addition, the Board of Directors approved an additional $100,000 profit sharing contribution for 2014. |
12. Salary Continuation and Def
12. Salary Continuation and Deferred Compensation Plans | 12 Months Ended |
Dec. 31, 2016 | |
Salary Continuation Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Salary Continuation and Deferred Compensation Plans | The Company maintains Salary Continuation Agreements for certain Executive officers. Executives participating in the Salary Continuation Plan are entitled to receive a monthly payment for a period of fifteen to twenty years upon retirement. The Company accrues such post-retirement benefits over the individual’s vesting period. The Salary Continuation Plan expense for the years ended December 31, 2016, 2015, and 2014 was $1,860,000, $1,786,000 and $463,000, respectively. Accrued compensation payable under the salary continuation plan totaled $6,659,000 and $5,028,000 at December 31, 2016 and 2015, respectively. The increase in Salary Continuation Agreement expense during 2016 and 2015 was due to primarily amending the Agreements for four executives. Prior to agreements being amended, benefits were not vested until the executives reached age 65 or there was a change-in-contol event. The Salary Continuation Agreements provide for a payment of a fixed amount over a period of 20 years following the executive’s separation from service. During 2016 and 2015, the expense that would have been recognized if the vesting dates had not been changed would have been $502,000 and $538,000, respectively. With the change to the vesting period for the current executive management team, the 2016 and 2015 salary continuation agreement expense totaled $1,860,000 and $1,786,000, respectively. There was no change in benefits to be paid out under the agreements, only a change in the vesting period and a change in the way current period service costs were recorded. The Deferred Compensation Plan allows eligible officers to defer annually their compensation up to a maximum of 80% of their base salary and 100% of their cash bonus. The officers are entitled to receive distribution upon reaching a specified age, passage of at least five years or termination of employment. As of December 31, 2016 and 2015, the related liability included in accrued expenses and other liabilities on the consolidated balance sheets was $1,790,000 and $1,543,000, respectively. |
13. Preferred Stock
13. Preferred Stock | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Preferred Stock | On September 15, 2011, the Company issued Preferred Stock as part of the Treasury’s Small Business Lending Fund (“SBLF”) as Preferred Stock – Series C – Non-Cumulative. On May 6, 2013, 25% or $3,150,000 of the original $12,600,000 was redeemed. On January 24, 2014, FNB Bancorp (the “Company”) redeemed all the remaining outstanding preferred shares that had been issued to the United States Treasury Department through the SBLF in a cash redemption. |
14. Income Taxes
14. Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | The provision (benefit) for income taxes for the years ended December 31, consists of the following: (Dollar amounts in thousands) 2016 2015 2014 Current: Federal $ 4,597 $ 2,929 $ 2,501 State 2,249 1,321 1,466 $ 6,846 $ 4,250 $ 3,967 Deferred: Federal $ (808 ) $ (158 ) $ 1,097 State (342 ) (728 ) 34 (1,150 ) (886 ) 1,131 Total provision for taxes $ 5,696 $ 3,364 $ 5,098 The reason for the differences between the statutory federal income tax rate and the effective tax rates for the years ending December 31, are summarized as follows: 2016 2015 2014 Statutory rates 35.0 % 34.0 % 34.0 % Increase (decrease) resulting from: Tax exempt Income for federal purposes -7.1 % -8.2 % -5.4 % State taxes on income, net of federal benefit 7.8 % 3.4 % 6.8 % Benefits from low income housing credits -1.6 % -2.3 % -1.9 % Stock based compensation 1.7 % 2.0 % 1.2 % Other, net -0.6 % 0.2 % 0.4 % Effective tax rate 35.2 % 29.1 % 35.1 % The tax effects of temporary differences giving rise to the Company’s net deferred tax asset are as follows: December 31, (Dollar amounts in thousands) 2016 2015 2014 Deferred tax assets Allowance for loan losses $ 4,661 $ 4,470 $ 4,369 Accrued salaries and officers compensation 3,717 2,770 1,502 Capitalized interest on buildings — — 14 Expenses accrued on books, not yet deductible in tax return 1,908 1,766 1,574 Depreciation 388 399 374 Net operating loss carryforward 1,069 1,335 — Tax credit carryforwards — — 22 Acquisition accounting differences 325 — 601 Unrealized depreciation on available-for-sale securities 1,074 — — 13,142 10,740 8,456 Deferred tax liabilities Unrealized appreciation on available-for-sale securities $ — $ 1,075 $ 1,094 State income taxes 1,156 1,070 613 Core deposit intangible 236 323 34 Expenses and credits deducted on tax return, not on books 933 754 102 Total deferred tax liabilities 2,325 3,222 1,843 Net deferred tax assets (included in other assets) $ 10,817 $ 7,518 6,613 As of December 31, 2016, management believes that it is more likely than not that the deferred tax assets will be realized through recovery of taxes previously paid and/or future taxable income. In assessing the Company’s ability to realize the tax benefits of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods which the deferred tax assets are deductible, management believes it is more likely than not that the Company will realize the recorded benefits of these deductible differences. |
15. Financial Instruments
15. Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Financial Instruments Disclosure [Abstract] | |
Financial Instruments | The Bank is a party to financial instruments with off-balance-sheet risk in the normal course of business. These financial instruments include commitments to extend credit in the form of loans or through standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest-rate risk in excess of the amount recognized in the balance sheet. The Bank’s exposure to credit loss is represented by the contractual amount of those instruments and is usually limited to amounts funded or drawn. The contract or notional amounts of these agreements, which are not included in the balance sheets, are an indicator of the Bank’s credit exposure. Commitments to extend credit generally carry variable interest rates and are subject to the same credit standards used in the lending process for on-balance-sheet instruments. Additionally, the Bank periodically reassesses the customer’s creditworthiness through ongoing credit reviews. The Bank generally requires collateral or other security to support commitments to extend credit. The following table provides summary information on financial instruments whose contract amounts represent credit risk as of December 31: (Dollars amounts in thousands) December 31 2016 2015 Financial instruments whose contract amounts represent credit risk: Lines of credit $ 103,316 $ 98,396 Other Commercial Commitments: Undisbursed loan commitments 59,249 56,306 Mastercard/Visa lines 5,696 6,722 Standby Letters of credit 4,995 5,830 $ 173,256 $ 167,254 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. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case basis, following normal lending policies. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management’s credit evaluation. Collateral held varies, but may include accounts receivable, inventory, property, plant and equipment, and income-producing commercial and residential properties. Equity reserves and unused credit card lines are additional commitments to extend credit. Many of these customers are not expected to draw down their total lines of credit, and therefore, the total contract amount of these lines does not necessarily represent future cash requirements. Standby letters of credit are conditional commitments issued by the Bank 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 loan facilities to customers. The Bank issues both financial and performance standby letters of credit. The financial standby letters of credit are primarily to guarantee payment to third parties. As of December 31, 2016, there were financial standby letters of credit of $4,983,000 issued. The performance standby letters of credit are typically issued to municipalities as specific performance bonds. As of December 31, 2016 there were performance letters of credit of $12,000 issued. As of December 31, 2015 there were performance letters of credit of $881,000 issued. The terms of the guarantees will expire in 2016. The Bank has experienced no draws on these letters of credit, and does not expect to in the future. However, should a triggering event occur, the Bank either has collateral in excess of the letters of credit or embedded agreements of recourse from the customer. |
16. Fair Value Measurements
16. Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2016 and 2015. Management has also described the fair value techniques used by the Company to determine such fair value. During 2016 and 2015 there were no transfers of assets and liabilities between levels. All assets and liability valuations were determined using consistent valuation technologies. Fair values established for available-for-sale investment securities are based on estimates of fair values quoted for similar types of securities with similar maturities, risk and yield characteristics. The following table presents the recorded amount of assets measured at fair value on a recurring basis: Fair Value Measurements (Dollar amounts in thousands) at December 31, 2016, Using Quoted Prices in Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets Inputs Inputs Description 12/31/2016 (Level 1) (Level 2) (Level 3) U. S. Treasury securities $ 987 $ 987 $ — $ — Obligations of U.S. Government agencies 60,545 — 60,545 — Mortgage-backed securities 84,284 — 84,284 — Obligations of states and political subdivisions 151,618 — 151,618 — Corporate debt 62,671 — 62,671 — Total assets measured at fair value $ 360,105 $ 987 $ 359,118 $ — Fair Value Measurements (Dollar amounts in thousands) at December 31, 2015, Using Quoted Prices in Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets Inputs Inputs Description 12/31/2015 (Level 1) (Level 2) (Level 3) U. S. Treasury securities $ 7,000 $ 7,000 $ — $ — Obligations of U.S. Government agencies 84,609 — 84,609 — Mortgage-backed securities 61,663 — 61,663 — Obligations of states and political subdivisions 135,190 — 135,190 — Corporate debt 40,745 — 40,745 — Total assets measured at fair value $ 329,207 $ 7,000 $ 322,207 $ — The following tables present the recorded amounts of assets measured at fair value on a non-recurring basis: Fair Value Measurements (Dollar amounts in thousands) at December 31, 2016, Using Quoted Prices in Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets Inputs Inputs Description 12/31/2016 (Level 1) (Level 2) (Level 3) Impaired loans: Commercial real estate $ — $ — $ — $ — Residential-1 to 4 family 67 — — 67 Commercial and industrial 815 — — 815 Other real estate owned 1,427 — — 1,427 Total impaired assets measured at fair value $ 2,309 $ — $ — $ 2,309 Fair Value Measurements (Dollar amounts in thousands) at December 31, 2015, Using Quoted Prices in Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets Inputs Inputs Description 12/31/2015 (Level 1) (Level 2) (Level 3) Impaired loans: Commercial real estate $ 136 $ — $ — $ 136 Residential-1 to 4 family 301 — — 301 Commercial and industrial 1,065 — — 1,065 Other real estate owned 1,026 — — 1,026 Total impaired assets measured at fair value $ 2,528 $ — $ — $ 2,528 The following methods and assumptions were used by the Company in estimating the fair value disclosures for financial instruments that are not carried at fair value on either a recurring or non-recurring basis: Cash and Cash Equivalents including Interest Bearing Time Deposits with Financial Institutions . The carrying amounts reported in the balance sheet for cash and short-term instruments are a reasonable estimate of fair value, which will approximate their historical cost. Securities Available-for-Sale. Fair values for investment securities are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments. Loans. For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. For fixed rate loans, fair values are based on discounted cash flows, credit risk factors, and liquidity factors. The allowance for loan and lease losses is considered to be a reasonable estimate of loan discount for credit quality concerns. Other equity securities. These are mostly Federal Reserve Bank stock and Federal Home Loan Bank stock, carried in other assets on the consolidated balance sheet. These securities can only be issued and redeemed at par by the issuing entities. They cannot be sold in open market transactions. Fair value is estimated to be carrying value. Deposit liabilities. The fair values disclosed for demand deposits (e.g., interest and non-interest checking, savings, and money market accounts) are, by definition, equal to the amount payable on demand at reporting date (i.e., their carrying amounts). The fair values for fixed-rate certificates of deposit are based on discounted cash flows. The allowance for loan and lease losses is considered to be a reasonabl estimate of loan discount for credit quality concerns. Federal Home Loan Bank Advances. The fair values of Federal Home Loan Bank Advances are based on discounted cash flows. The discount rate is equal to the market currently offered on similar products. Note payable. Fair value is equal to the current balance. They represent a corporate loan with a monthly variable rate, based on the 3-month LIBOR rate plus 4%. Accrued Interest Receivable and Payable. The interest receivable and payable balances approximate their fair value due to the short-term nature of their settlement dates. Undisbursed loan commitments, lines of credit, Mastercard line and standby letters of credit. The fair value of these off-balance sheet items are based on discounted cash flows of expected fundings. The Company has excluded non-financial assets and non-financial liabilities defined by the Codification (ASC 820-10-15-A), such as Company premises and equipment, deferred taxes and other liabilities. In addition, the Company has not disclosed the fair value of financial instruments specifically excluded from disclosure requirements of the Financial Instruments Topic of the Codification (ASC 825-10-50-8), such as Bank-owned life insurance policies. The following table provides summary information on the estimated fair value of financial instruments at December 31, 2016 and 2015: December 31, 2016 Carrying Fair Fair value measurements (Dollar amounts in thousands) amount value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 15,758 $ 15,758 $ 15,758 Interest-bearing time deposits with financial institutions 205 205 $ 205 Securities available for sale 360,105 360,105 987 359,118 Loans 782,485 769,661 $ 769,661 Other equity securities 7,206 7,206 7,206 Accrued interest receivable 4,942 4,942 4,942 Financial liabilities: Deposits 1,019,506 1,020,088 951,743 68,345 Federal Home Loan Bank advances 71,000 71,000 71,000 Note payable 4,350 4,350 4,350 Accrued interest payable 246 246 246 Off-balance-sheet liabilities: Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit — 1,733 1,733 December 31, 2015 Carrying Fair Fair value measurements (Dollar amounts in thousands) amount value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 12,314 $ 12,314 $ 12,314 Interest-bearing time deposits with financial institutions 205 205 205 Securities available for sale 329,207 329,207 7,000 322,207 Loans 722,747 713,966 713,966 Other equity securities 6,748 6,748 6,748 Accrued interest receivable 4,511 4,511 4,511 Financial liabilities: Deposits 983,189 983,771 857,759 126,012 Federal Home Loan Bank advances 17,000 17,000 17,000 Note payable 4,950 4,950 4,950 Accrued interest payable 236 236 236 Off-balance-sheet liabilities: Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit — 1,673 1,673 |
17. Significant Group Concentra
17. Significant Group Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2016 | |
Concentration Risk Disclosure [Abstract] | |
Significant Group Concentrations of Credit Risk | Most of the Bank’s business activity is with customers located within San Mateo and San Francisco counties. Generally, loans are secured by assets of the borrowers. Loans are expected to be repaid from cash flows or proceeds from the sale of selected assets of the borrowers. The Bank does not have significant concentrations of loans to any one industry, but does have loan concentrations in commercial real estate loans that are considered high by regulatory standards. The Bank has mitigated this concentration to a large extent by utilizing underwriting standards that are more conservative than regulatory guidelines, and performing stress testing on this segment of the portfolio to insure that the commercial real estate loan portfolio will perform within management expectations given an additional downturn in commercial lease rates and commercial real estate valuations. The distribution of commitments to extend credit approximates the distribution of loans outstanding. Commercial and standby letters of credit were granted primarily to commercial borrowers. The contractual amounts of credit-related financial instruments such as commitments to extend credit, credit-card arrangements, and letters of credit represent the amounts of potential accounting loss should the contract be fully drawn upon, the customer default, and the value of any existing collateral become worthless. |
18. Regulatory matters
18. Regulatory matters | 12 Months Ended |
Dec. 31, 2016 | |
Regulatory Matters Disclosure [Abstract] | |
Regulatory matters | The Company, as a bank holding company, is subject to regulation by the Board of Governors of the Federal Reserve System under the Bank Holding Company Act of 1956, as amended. The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and the Bank’s 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 asset groupings, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of Total, Common Equity and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined). Management believes, as of December 31, 2016, that the Company and the Bank have met all regulatory capital requirements. As of December 31, 2016, the most recent notification from the regulatory agencies categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized the Bank must maintain minimum total capital, Tier 1 capital, common equity Tier 1 capital, and leverage ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the Bank’s categories. Management believes that the Company and the Bank are both “well capitalized” by regulatory definitions for all required regulatory capital ratios, including leverage, common equity Tier 1, Tier 1 and total capital requirements for all periods presented. Management believes that relations with our regulatory agencies are good. 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 (which standards are commonly referred to as “Basel III”) as well as requirements contemplated by the Dodd-Frank Act. Under the new capital rules, the Bank is required to meet certain minimum capital requirements that differ from current capital requirements. The new rules implement a new capital ratio of common equity Tier 1 capital to risk- weighted assets. Common equity Tier 1 capital generally consists of retained earnings and common stock (subject to certain adjustments) as well as accumulated other comprehensive income (“AOCI”), except to the extent that the Bank exercised a one-time irrevocable option to exclude certain components of AOCI as of March 31, 2015. The Bank will also be required to establish a “conservation buffer,” consisting of a common equity Tier 1 capital amount equal to 2.5% of risk-weighted assets to be phased in by 2019. An institution that does not meet the conservation buffer will be subject to restrictions on certain activities including payment of dividends, stock repurchases, and discretionary bonuses to executive officers. The prompt corrective action rules are modified to include the common equity Tier 1 capital ratio and to increase the Tier 1 capital ratio requirements for the various thresholds. For example, the requirements for the Bank to be considered well-capitalized under the rules will be a 5.0% leverage ratio, a 6.5% common equity Tier l capital ratio, an 8.0% Tier 1 capital ratio, and a 10.0% total capital ratio. To be adequately capitalized, those ratios are 4.0%, 4.5%, 6.0%, and 8.0%, respectively. The rules modify the manner in which certain capital elements are determined. The rules make changes to the methods of calculating the risk-weighting of certain assets, which in turn affects the calculation of the risk-weighted capital ratios. Higher risk weights are assigned to various categories of assets, including commercial real estate loans, credit facilities that finance the acquisition, development or construction of real property, certain exposures or credit that are 90 days past due or are nonaccrual, securitization exposures, and in certain cases mortgage servicing rights and deferred tax assets. The conservation buffer will be phased-in beginning in 2016, and will take full effect on January 1, 2019. Certain calculations under the rules will also have phase-in periods. The capital ratios for the Company and the Bank are presented in the table below Transitional Well-capitalized Minimum Minimum by Regulatory Regulatory Regulatory Definition Requirement Requirement (1) Under FDICIA At December 31, 2016 Effective Effective Effective Company Bank January 1, 2016 January 1, 2019 January 1, 2016 Common Equity Tier 1 Capital 11.32 % 11.59 % 4.50 % 7.00 % 6.50 % Tier 1 Capital 11.32 % 11.59 % 6.00 % 8.50 % 8.00 % Total Capital 12.42 % 12.68 % 8.00 % 10.50 % 10.00 % Leverage ratio 9.02 % 9.27 % 4.00 % 4.00 % 5.00 % (1) Includes 2.5% capital conservation buffer. Transitional Well-capitalized Minimum Minimum by Regulatory Regulatory Regulatory Definition Requirement Requirement (1) Under FDICIA At December 31, 2016 Effective Effective Effective Company Bank January 1, 2016 January 1, 2019 January 1, 2016 Common Equity Tier 1 Capital $ 106,971 $ 109,538 $ 42,533 $ 66,163 $ 61,437 Tier 1 Capital $ 106,971 109,538 56,711 80,341 75,615 Total Capital 117,315 119,882 75,615 99,244 94,518 Leverage Capital 106,971 109,538 47,443 47,443 59,304 Transitional Well-capitalized Minimum Minimum by Regulatory Regulatory Regulatory Definition Requirement Requirement (1) Under FDICIA At December 31, 2015 Effective Effective Effective Company Bank January 1, 2016 January 1, 2019 January 1, 2015 Common Equity Tier 1 Capital 11.54 % 12.14 % 4.50 % 7.00 % 6.50 % Tier 1 Capital 11.54 % 12.14 % 6.00 % 8.50 % 8.00 % Total Capital 12.76 % 13.35 % 8.00 % 10.50 % 10.00 % Leverage ratio 8.64 % 9.08 % 4.00 % 4.00 % 5.00 % (1) Includes 2.5% capital conservation buffer. Transitional Well-capitalized Minimum Minimum by Regulatory Regulatory Regulatory Definition Requirement Requirement (1) Under FDICIA At December 31, 2015 Effective Effective Effective Company Bank January 1, 2016 January 1, 2019 January 1, 2015 Common Equity Tier 1 Capital $ 96,476 $ 101,426 $ 37,609 $ 58,504 $ 54,325 Tier 1 Capital 96,476 $ 101,426 50,145 71,040 66,861 Total Capital 106,623 111,573 66,861 87,755 83,577 Leverage ratio 96,476 101,426 44,675 44,675 55,843 |
19. Stock Option Plans
19. Stock Option Plans | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Option Plans | In 1997, the Board of Directors of the Bank adopted the First National Bank of Northern California 1997 stock option plan. Pursuant to the holding company reorganization effective March 15, 2002, the Bank stock option plan became the FNB Bancorp stock option Plan. In 2002, the Company adopted an incentive employee stock option plan known as the 2002 FNB Bancorp plan. In 2008, the Company adopted an incentive employee stock option plan known as the 2008 FNB Bancorp stock option plan. The plans provide the Company the ability to grant additional options to employees covering 345,619 shares as of December 31, 2016. Incentive stock options currently outstanding become exercisable in one to five years from the grant date, based on a vesting schedule of 20% per year and expire 10 years after the grant date. Nonqualified options to directors become vested on the date of grant. The options exercise price is the fair value of the per share price of the underlying stock options at the grant date. The amount of compensation expense for options recorded in the years ended December 31, 2016, 2015, and 2014 was $513,000, $427,000 and $307,000, respectively. There was an income tax benefit related to stock option exercises for the year ended December 31, 2014, but none in 2015 and 2016. The amount of unrecognized compensation expense related to non-vested options at December 31, 2016 was $1,409,000, and the weighted average period it will be amortized is 3.9 years. The assumptions for options granted in 2016 were as follows: dividend yield of 1.94% for the year; risk-free interest rate of 2.15%; expected volatility of 37%; expected life of 7.2 years. This resulted in a weighted average fair value per option of $11.14. The amount of total unrecognized compensation expense related to non-vested options at December 31, 2015 was $1,061,000, and the weighted average period it will be amortized over is 4.0 years. The assumptions for options granted in 2015 were as follows: dividend yield of 1.96% for the year; risk-free interest rate of 2.14%; expected volatility of 41%; expected life of 8.9 years. This resulted in a weighted average fair value of $11.82 per share. The amount of total unrecognized compensation expense related to non-vested options at December 31, 2014 was $743,000, and the weighted average period it will be amortized over is 3.6 years. The assumptions for options granted in 2014 were as follows: dividend yield of 1.49% for the year; risk-free interest rate of 2.08%; expected volatility of 41.85%; expected life of 9.1 years. This resulted in a weighted average option fair value of $4.08 per share. A summary of option activity, adjusted for stock dividends, issued under the 2008 FNB Bancorp Plan as of December 31, 2016 and changes during the year then ended is presented below. Weighted- Average 2008 FNB Bancorp Plan Weighted Remaining Aggregate Average Contractual Intrinsic Exercise Term Value Options Shares Price/share (in years) per share Outstanding at January 1, 2016 390,896 $ 17.74 Granted 84,276 $ 31.43 Exercised (48,557 ) $ 12.68 $ 15.32 Forfeited or expired (4,908 ) $ 24.23 Outstanding at December 31, 2016 421,707 $ 20.99 6.9 $ 11.56 Exercisable at December 31, 2016 244,191 $ 17.02 5.7 $ 15.53 The following supplemental information applies to the three years ended December 31: 2008 FNB Bancorp Plan 2016 2015 2014 Options outstanding 421,707 390,896 357,007 Range of exercise prices/share $ 5.30 to $31.43 $ 5.3017-$24.40 $ 5.30-$24.40 Weighted average remaining contractual life (in years) 6.9 7.0 7.2 Fully vested options 244,191 217,641 183,739 Weighted average exercise price/sh $ 17.02 $ 17.74 $ 14.89 Aggregate intrinsic value $ 4,876,927 $ 4,307,190 $ 3,653,213 Weighted average remaining contractual life (in years) 5.7 5.9 6.0 A summary of option activity, adjusted for stock dividends, under the 2002 FNB Bancorp Plan as of December 31, 2016 and changes during the year then ended is presented below. Weighted- Average 2002 FNB Bancorp Plan Weighted Remaining Aggregate Average Contractual Intrinsic Exercise Term Value Options Shares Price/share (in years) per share Outstanding at January 1, 2016 64,015 $ 20.22 Granted — — Exercised (43,771 ) $ 20.84 $ 7.05 Forfeited or expired (1,198 ) $ 21.19 Outstanding at December 31, 2016 19,046 $ 18.72 0.5 $ 13.83 Exercisable at December 31, 2016 19,046 $ 18.72 0.5 $ 13.83 The following supplemental information applies to the three years ended December 31: 2002 FNB Bancorp Plan 2016 2015 2014 Options outstanding 19,046 64,015 116,454 Range of exercise prices/share $ 18.72 to $18.72 $ 18.72 to $21.19 $ 16.73 to $21.19 Weighted average remaining contractual life (in years) 0.5 0.9 1.4 Fully vested options 19,046 64,015 116,454 Weighted average exercise price/sh $ 18.72 $ 20.22 $ 19.34 Aggregate intrinsic value $ 263,324 $ 547,108 $ 679,373 Weighted average remaining contractual life (in years) 0.5 0.9 1.4 A summary of option activity, adjusted for stock dividends, under the 1997 FNB Bancorp Plan as of December 31, 2016 and changes during the year then ended is presented below. Weighted- Average 1997 First National Bank Plan Weighted Remaining Aggregate Average Contractual Intrinsic Exercise Term Value Options Shares Price (in years) (thousands) Outstanding at January 1, 2016 33,882 $ 18.72 Granted — — Exercised (22,805 ) 18.72 Forfeited or expired — — Outstanding at December 31, 2016 11,077 $ 18.72 0.5 $ 13.73 Exercisable at December 31, 2016 11,077 $ 18.72 0.5 $ 13.73 The following supplemental information applies to the three years ended December 31: 1997 FNB Bancorp Plan 2016 2015 2014 Options outstanding 11,077 33,882 34,860 Range of exercise prices $ 18.72 $ 18.72 $ 18.72 Weighted average remaining contractual life (in years) 0.5 1.5 2.5 Fully vested options 11,077 33,882 34,860 Weighted average exercise price/sh $ 18.72 $ 18.72 $ 18.72 Aggregate intrinsic value $ 152,593 $ 340,094 $ 224,701 Weighted average remaining contractual life (in years) 0.5 1.5 2.5 |
20. Quarterly Data (Unaudited)
20. Quarterly Data (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Data (Unaudited) | Per share amounts are adjusted for stock dividends 2016 (Dollars in thousands) First Second Third Fourth Interest income $ 11,565 $ 11,316 $ 11,122 $ 11,510 Interest expense 848 766 721 734 Net interest income 10,717 10,550 10,401 10,776 Provision for loan losses 75 75 — — Net interest income, after provision for loan losses 10,642 10,475 10,401 10,776 Noninterest income 1,134 1,036 1,102 1,323 Noninterest expense 7,787 7,649 7,513 7,743 Income before income taxes 3,989 3,862 3,990 4,356 Provision for income taxes 1,422 1,414 1,546 1,314 Net earnings $ 2,567 $ 2,448 $ 2,444 $ 3,042 Basic earnings per share $ 0.54 $ 0.51 $ 0.50 $ 0.63 Diluted earnings per share $ 0.52 $ 0.50 $ 0.49 $ 0.61 2015 (Dollars in thousands) First Second Third Fourth Interest income $ 9,068 $ 9,300 $ 9,893 $ 11,021 Interest expense 514 595 693 795 Net interest income 8,554 8,705 9,200 10,226 Provision for (recovery) of loan losses 75 75 75 (530 ) Net interest income, after provision for loan losses 8,479 8,630 9,125 10,756 Non-interest income 1,078 1,267 1,024 1,127 Non-interest expense 6,943 6,789 7,479 8,714 Income before income taxes 2,614 3,108 2,670 3,169 Provision for income taxes 815 1,037 431 1,081 Net earnings $ 1,799 $ 2,071 $ 2,239 $ 2,088 Basic earnings per share $ 0.38 0.44 $ 0.48 $ 0.44 Diluted earnings per share $ 0.37 $ 0.43 $ 0.46 $ 0.42 |
21. Condensed Financial Informa
21. Condensed Financial Information of Parent Company | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of Parent Company | The parent company-only condensed balance sheets, condensed statements of earnings, and condensed statements of cash flows information are presented as of and for the years ended December 31, as follows: FNB Bancorp Condensed balance sheets December 31, (Dollars in thousands) 2016 2015 Assets: Cash and due from banks $ 1,795 $ 1,124 Investments in subsidiary 112,881 107,835 Income tax payable to subsidiary (244 ) (78 ) Dividend receivable from subsidiary 739 649 Other assets 243 242 Total assets $ 115,414 $ 109,772 Liabilities: Dividend declared $ 739 $ 649 Note payable 4,350 4,950 Other liabilities 11 11 Total liabilities 5,100 5,610 Stockholders’ equity 110,314 104,162 Total liabilities and stockholders’ equity $ 115,414 $ 109,772 FNB Bancorp Condensed statements of earnings Years Ended December 31, (Dollars in thousands) 2016 2015 2014 Income: Dividends from subsidiary $ 2,890 $ 2,439 $ 10,444 Total income 2,890 2,439 10,444 Expense: Interest on note payable 222 229 192 Other expense 135 128 155 Total expense 357 357 347 Income before income tax benefit and equity in undistributed earnings of subsidiary 2,533 2,082 10,097 Income tax benefit — (56 ) (38 ) Income before equity in undistributed earnings (loss) of subsidiary 2,533 2,138 10,135 Equity in undistributed earnings (loss) of subsidiary 7,968 6,059 (726 ) Net earnings 10,501 8,197 9,409 Dividends and discount accretion on preferred stock — — 170 Net earnings available to common shareholders $ 10,501 $ 8,197 $ 9,239 See accompanying notes to consolidated financial statements. FNB Bancorp Condensed statement of cash flows Years ended December 31, (Dollars in thousands) 2016 2015 2014 Net earnings $ 10,501 $ 8,197 $ 9,409 Decrease (increase) in income tax receivable from subsidiary 166 165 (38 ) Net increase in dividend receivable and other assets (166) (163 ) (88 ) Net increase (decrease) in other liabilities — 147 (395 ) Excess tax benefit from exercised stock options (600) (222 ) (483 ) Undistributed earnings of subsidiary (7,968 ) (6,059 ) 726 Stock-based compensation expense 513 427 307 Cash flows from operating activities 2,446 2,492 9,438 Investment in subsidiary — (882 ) (6,000 ) Cash flows from investing activities — (882 ) (6,000 ) Repayment of capital purchase program — — (9,450 ) Proceeds from issuance of note payable — — 6,000 Payment on note payable (600 ) (600 ) (450 ) Exercise of stock options 1,115 924 1,216 Excess tax benefit from exercised stock options 600 222 483 Dividends on common stock (2,890 ) (1,786 ) (1,294 ) Cash dividends on preferred stock series A,B,C — — (170 ) Cash flows provided by financing activities (1,775 ) (1,240 ) (3,665 ) Net increase (decrease) in cash 671 370 (227 ) Cash, beginning of year 1,124 754 981 Cash, end of year $ 1,795 $ 1,124 $ 754 Non-cash investing and financing activities: Accrued dividends 738 649 486 Stock dividend of 5% 7,850 6,663 5,468 See accompanying notes to consolidated financial statements. |
1. The Company and Summary of32
1. The Company and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Dividends Payable [Line Items] | |
Basis of Presentation | The accounting and reporting policies of the Company and its wholly-owned subsidiary are in accordance with accounting principles generally accepted in the United States of America. All intercompany balances and transactions have been eliminated. |
Cash and Cash Equivalents | Cash and cash equivalents include cash on hand, amounts due from banks, and federal funds sold. Generally, federal funds are sold for one-day periods. The cash equivalents are readily convertible to known amounts of cash and present insignificant risk of changes in value due to original maturity dates of 90 days or less. Included in cash and cash equivalents are restricted balances at the Federal Reserve Bank of San Francisco which relate to a minimum cash reserve requirement of approximately $1,810,000 and $2,186,000 at December 31, 2016 and 2015, respectively, currently met by vault cash. |
Investment Securities | Investment securities consist of U.S. Treasury securities, U.S. agency securities, obligations of states and political subdivisions, obligations of U.S. corporations, mortgage-backed securities and other securities. At the time of purchase of a security, the Company designates the security as held-to-maturity or available-for-sale, based on its investment objectives, operational needs, and intent to hold. The Company classifies securities as held to maturity only if and when it has the positive intent and ability to hold the security to maturity. The Company does not purchase securities with the intent to engage in trading activity. Held to maturity securities are recorded at amortized cost, adjusted for amortization of premiums or accretion of discounts. The Company did not have any investments in the held-to-maturity portfolio at December 31, 2016 or 2015. Securities available-for-sale are recorded at fair value with unrealized holding gains or losses, net of the related tax effect, reported as a separate component of stockholders’ equity until realized. An impairment charge will be recorded if the Company has the intent to sell a security that is currently in an unrealized loss position or where the Company may be required to sell a security that is currently in an unrealized loss position. A decline in the fair value of any security available-for-sale or held-to-maturity below cost that is deemed other than temporary will cause a charge to earnings to be recorded and the corresponding establishment of a new cost basis for the security. Amortization of premiums and accretion of discounts on debt securities are included in interest income over the life of the related security held-to-maturity or available-for-sale using the effective interest method. Dividend and interest income are recognized when earned. Realized gains and losses for securities classified as available-for-sale and held-to-maturity are included in earnings and are derived using the specific identification method for determining the cost of securities sold. 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 consolidated financial statement date, management assesses each investment to determine if impaired investments are temporarily impaired or if the impairment is other than temporary. This assessment includes a determination of whether the Company intends to sell the security, or if it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis less any current-period credit losses. For debt securities that are considered other than temporarily impaired and that the Company does not intend to sell and will not be required to sell prior to recovery of the amortized cost basis, the amount of impairment is separated into the amount that is credit related (credit loss component) and the amount due to all other factors. The credit loss component is recognized in earnings and is calculated as the difference between the security’s amortized cost basis and the present value of its expected future cash flows. The remaining difference between the security’s fair value and the present value of the future expected cash flows is deemed to be due to factors that are not credit related and is recognized in other comprehensive earnings. |
Derivatives | All derivatives contracts and instruments are recognized as either assets or liabilities in the consolidated balance sheet and measured at fair value. The Company did not hold any derivative contracts at December 31, 2016 or 2015. |
Loans | Loans are reported at the principal amount outstanding, net of deferred loan fees and the allowance for loan losses. An unearned discount on installment loans is recognized as income over the terms of the loans by the interest method. Interest on other loans is calculated by using the simple interest method on the daily balance of the principal amount outstanding. Loan fees net of certain direct costs of origination, which represent an adjustment to interest yield, are deferred and amortized over the contractual term of the loan using the interest method. Loans on which the accrual of interest has been discontinued are designated as nonaccrual loans. Accrual of interest on loans is discontinued either when reasonable doubt exists as to the full and timely collection of interest or principal when a loan becomes contractually past due by 90 days or more with respect to interest or principal. When a loan is placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income. Interest accruals are resumed on such loans only when they are brought fully current with respect to interest and principal and when, in the judgment of management, the loans are estimated to be fully collectible as to both principal and interest. A loan is considered impaired if, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due, according to the contractual terms of the loan agreement. An impaired loan is measured based upon the present value of future cash flows discounted at the loan’s effective rate, the loan’s observable market price, or the fair value of collateral if the loan is collateral dependent. Interest on impaired loans is recognized on a cash basis. If the measurement of the impaired loan is less than the recorded investment in the loan, an impairment is recognized by a charge to the allowance for loan losses. Large groups of smaller balance loans are collectively evaluated for impairment. Restructured loans are loans on which concessions in terms have been granted because of the borrowers’ financial difficulties. Interest is generally accrued on such loans in accordance with the new terms, once the borrower has demonstrated a history of at least six months repayment. A loan is considered to be a troubled debt restructuring when the Company, for economic or legal reasons related to the debtor’s financial difficulties grants a concession to the debtor that makes it easier for the debtor to make their required loan payments. The concession may take the form of a temporary reduction in the interest rate or monthly payment amount due or may extend the maturity date of the loan. Other financial concessions may be agreed to as conditions warrant. Troubled debt restructured loans are accounted for as impaired loans. For an impaired loan that has been restructured, the contractual terms of the loan agreement refer to the contractual terms specified by the original loan agreement, not the contractual terms specified by the restructuring agreement. Loans acquired in business combinations are recorded on a loan-by-loan basis at their estimated fair value. The Company uses third party valuation specialists to determine the estimated fair value on all acquired loans. The Company acquires both performing and impaired loans (loans acquired with evidence of credit quality deterioration at the time of purchase) in its acquisitions. For acquired performing loans, any discount or premium related to fair value adjustments at the time of purchase is recognized as interest income over the estimated life of the loan using the effective yield method. Loans acquired with evidence of credit quality deterioration, at the time of purchase, are accounted for under ASC 310-30 Loans and Debt Securities Acquired with Deteriorated Credit Quality The excess of the contractual amounts due over the cash flows expected to be collected is considered to be the nonaccretable difference. The nonaccretable difference represents the Company’s estimate of the credit losses expected to occur and is considered in determining the fair value of the loans as of the acquisition date. Subsequent to the acquisition date, any increases in expected cash flows over those expected at acquisition date in excess of fair value are adjusted through an increase to the accretable yield on a prospective basis. Any subsequent decreases in cash flows attributable to credit deterioration are recognized by recording additional provision for loan losses. |
Allowance for Loan Losses | The allowance for loan losses is established through a provision for loan losses charged to expense. Loans are charged off against the allowance for loan losses when management believes that the collectability of the principal is unlikely. The allowance is an amount that management believes will be adequate to absorb probable losses inherent in existing loans, standby letters of credit, overdrafts, and commitments to extend credit based on evaluations of collectability and prior loss experience. The evaluations take into consideration such factors as changes in the nature and volume of the portfolio, overall portfolio quality, loan concentrations, specific problem loans and current and anticipated economic conditions that may affect the borrowers’ ability to pay. While management uses these evaluations to determine the level of the allowance for loan losses, future provisions may be necessary based on changes in the factors used in the evaluations. Material estimates relating to the determination of the allowance for loan losses are particularly susceptible to significant change in the near term. Management believes that the allowance for loan losses is adequate as of December 31, 2016. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on changes in economic conditions, and our borrowers’ ability to pay. In addition, the banking regulators, as an integral part of its examination process, periodically review the Bank’s allowance for loan losses. The banking regulators may require the Bank to recognize additions to the allowance based on their judgment about information available to them at the time of their examination. |
Premises and Equipment | Premises and equipment are reported at cost less accumulated depreciation using the straight-line method over the estimated service lives of related assets ranging from 3 to 50 years. Leasehold improvements are amortized over the estimated lives of the respective leases or the service lives of the improvements, whichever is shorter. |
Other Real Estate Owned | Real estate properties acquired through, or in lieu of, loan foreclosure are to be sold and are initially recorded at the lower of the carrying amount of the loan or fair value of the property at the date of foreclosure less selling costs. Subsequent to foreclosure, valuations are periodically performed, and any subsequent revisions in the estimate of fair value are reported as an adjustment to the carrying value of the real estate, provided the adjusted carrying amount does not exceed the original amount at foreclosure. Revenues and expenses from operations and changes in the valuation allowance are included in other operating expenses. The Company may make loans to facilitate the sale of foreclosed real estate. Gains and losses on financed sales are recorded in accordance with the appropriate accounting standard, taking into account the buyer’s initial and continuing investment in the property, potential subordination and transfer of ownership. |
Goodwill and Other Intangible Assets | Goodwill is recognized in a business acquisition transaction when the acquisition purchase price exceeds the fair value of identified tangible and intangible assets and liabilities. Goodwill is subsequently evaluated for possible impairment at least annually. If impairment is determined to exist, it is recorded in the period it is identified. The Company evaluated goodwill at December 31, 2016 and found no impairment. Other intangible assets consist of core deposit and customer intangible assets that are initially recorded at fair value and subsequently amortized over their estimated useful lives, usually no longer than a seven year period. |
Other Income | Other income includes the following major items: (Dollar amounts in thousands) 2016 2015 2014 Dividend income-other equity securities $ 775 $ 651 $ 398 Rental income-other real estate owned 144 144 199 All other items 375 497 362 Total other income $ 1,294 $ 1,292 $ 959 |
Other Expense | Other expense includes the following major items: (Dollar amounts in thousands) 2016 2015 2014 Dues and memberships $ 146 $ 125 $ 115 Real estate appraisals 75 75 64 Training and seminars 54 66 63 Amortization of deposit premium 207 82 60 Mastercard 104 96 101 Armored Transit 113 113 129 OCC Assessment 269 238 221 Operating Losses 188 97 64 All other items 512 390 351 $ 1,668 $ 1,282 $ 1,168 |
Income Taxes | Deferred income taxes are determined using the asset and liability method. Under this method, the net deferred tax asset or liability is recognized for tax consequences of temporary differences by applying current tax rates to differences between the financial reporting and the tax basis of existing assets and liabilities. Deferred tax assets and liabilities 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. A valuation allowance is established through the provision for income taxes for any deferred tax assets where the utilization of the asset is in doubt. As changes in tax laws or rates are enacted, or as significant changes are made in financial projections, deferred tax assets and liabilities are adjusted through the provision for income taxes. The Company had no unrecognized tax benefits as of December 31, 2016 and 2015, and a $718,000 unrecognized benefit as of December 31, 2014. The unrecognized tax benefit was related to income tax uncertainties surrounding the Bank’s Enterprise Zone net interest deduction. The FIB has reached a settlement with the Franchise Tax Board for the years from 2005 through 2013, and the outcome of these audits is an anticipated net tax settlement of $51,000 against a deposit of $364,314 that was made in 2012. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in tax expense. During the years ended December 31, 2016, 2015 and 2014, the Company believes that any penalties and interest penalties that may exist are not material and the Company has not accrued for them. At December 31, 2016, the Bank had a $1,825,000 net investment in five partnerships, which own low-income affordable housing projects that generate tax benefits in the form of federal and state housing tax credits. As a limited partner investor in these partnerships, the Company receives tax benefits in the form of tax deductions from partnership operating losses and federal and state income tax credits. The federal and state income tax credits are earned over a 10-year period as a result of the investment properties meeting certain criteria and are subject to recapture for noncompliance with such criteria over a 15-year period. The expected benefit resulting from the low-income housing tax credits is recognized in the period for which the tax benefit is recognized in the Company’s consolidated tax returns. These investments are accounted for using the historical cost method less depreciation and amortization and are recorded in other assets on the balance sheet. The Company recognizes tax credits as they are allocated and amortizes the initial cost of the investments over the period that tax credits are allocated to the Company. There is no residual value for the investment at the end of the tax credit allocation period. Cash received from operations of the limited partnership or sale of the properties, if any, will be included in earnings when realized. |
Earnings per Share | Earnings per common share (EPS) are computed based on the weighted average number of common shares outstanding during the period. Basic EPS excludes dilution and is computed by dividing net earnings available to common stockholders (after deducting dividends and related accretion on preferred stock) by the weighted average of common shares outstanding. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. The number of potential common shares included in the quarterly diluted EPS is computed using the average market price during the three months included in the reporting period under the treasury method. The number of potential common shares included in year-to-date diluted EPS is a year-to-date weighted average of potential shares included in each quarterly diluted EPS computation. All common stock equivalents are anti-dilutive when a net loss occurs. A 5% stock dividend was declared in 2016, 2015 and 2014 and prior per share amounts have been adjusted to reflect the 5% stock dividends declared. (Number of shares in thousands) 2016 2015 2014 Weighted average common shares outstanding-used in computing basic earnings per share 4,822 4,742 4,666 Dilutive effect of stock options outstanding, using the treasury stock method 123 134 148 Shares used in computing diluted earnings per share 4,945 4,876 4,814 Anti-dilutive options not included 69 106 71 |
Stock Option Plans | Measurement of the cost of stock options granted is based on the grant-date fair value of each stock option granted using the Black-Scholes valuation model. The cost is then amortized to expense on a straight-line basis over each option’s requisite service period. The amortized expense of the stock option’s fair value has been included in salaries and employee benefits expense on the consolidated statements of earnings for the three years ended December 31, 2016, 2015 and 2014. The expected term of options granted is derived from the output of the option valuation model and represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods within the expected term of the option is based on the U. S. Treasury yield curve in effect at the time of the grant. The Company’s stock has limited liquidity and limited trading activity. Volatility was calculated using historical price changes on a monthly basis over the expected life of the option. |
Fair Values of Financial Instruments | The accounting standards provide for a fair value measurement framework that quantifies fair value estimates by the level of pricing precision. The degree of judgment utilized in measuring the fair value of assets generally correlates to the level of pricing precision. Financial instruments rarely traded or not quoted will generally have a higher degree of judgment utilized in measuring fair value. Pricing precision is impacted by a number of factors including the type of asset or liability, the availability of the asset or liability, the market demand for the asset or liability, and other conditions that were considered at the time of the valuation. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. Transfers between levels of the fair values hierarchy are recognized at the actual date of the event or circumstance that caused the transfer. |
Bank Owned Life Insurance | The Company purchased insurance on the lives of certain executives. The policies accumulate asset values to meet future liabilities including the payment of employee benefits such as the deferred compensation plan. Changes in the cash surrender value are recorded as other noninterest income in the consolidated statements of earnings. |
Federal Home Loan Bank Borrowings | The Bank maintains a collateralized line of credit with the Federal Home Loan Bank (“FHLB”) of San Francisco. Under this line, the Bank may borrow on a short term or a long term (over one year) basis at the then stated interest rate. FHLB advances are recorded and carried at their historical cost. FHLB advances are not transferable and may contain prepayment penalties. In addition to the collateral pledged, the Company is required to hold prescribed amounts of FHLB stock that vary with the usage of FHLB borrowings. |
Comprehensive Income | Certain changes in assets and liabilities, such as unrealized gain and losses on available-for-sale securities are reported as a separate component of the equity section of the consolidated balance sheet, such items, along with net income, are components of comprehensive income. |
Note Payable | The Company obtained a corporate loan with a five year term, for $6,000,000, payable at $50,000 principal monthly, plus interest, and is based on the 3-month LIBOR rate plus 4%. |
Federal Home Loan Bank Stock | Federal Home Loan Bank (FHLB) stock represents an equity interest that does not have a readily determinable fair value because its ownership is restricted and it lacks a market (liquidity). FHLB stock is recorded at cost. |
Reclassifications | Certain prior year information has been reclassified to conform to current year presentation. The reclassifications had no impact on consolidated net earnings or retained earnings. |
Recent Accounting Pronouncements | In January 2016 FASB issued ASU 2016-01, Financial Instruments-overall (subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016 FASB issued ASU 2016-02 , Leases (Topic 842). In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606); Principal versus agent considerations (reporting revenue gross versus net In June 2016 FASB issued ASU 2016-13, Financial Instruments-Credit Losses In August 2016, FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230: Classification of Certain Cash Receipts and Cash Payments. In January 2017, FASB issued ASU 2017-01, Business Combinations, (Topic 805) Clarifying the Definition of a Business. In January 2017, FASB issued ASU 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments – Equity Method and Joint Ventures (Topic 323). In January 2017, FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topc350). Simplifying the Test for Goodwill Impairment. |
Cash Dividends [Member] | |
Dividends Payable [Line Items] | |
Cash Dividends and Stock Dividend | The Company’s ability to pay cash dividends is subject to restrictions set forth in the California General Corporation Law. Funds for payment of any cash dividends by the Company would be obtained from its investments as well as dividends and/or management fees from the Bank. The Bank’s ability to pay cash dividends is also subject to restrictions imposed under the National Bank Act and regulations promulgated by the Office of the Comptroller of the Currency. |
Stock Dividends [Member] | |
Dividends Payable [Line Items] | |
Cash Dividends and Stock Dividend | On October 28, 2016, the Company announced that its Board of Directors had declared a five percent (5%) stock dividend which resulted in approximately 231,000 shares, payable at the rate of one share of Common Stock for every twenty (20) shares of Common Stock owned. The stock dividend was paid on December 30, 2016 to shareholders of record on November 30, 2016. The earnings per share data for all periods presented have been adjusted for stock dividends. However, the Consolidated Statement of Changes in Stockholders’ Equity shows the historical roll forward of stock options declared. |
1. The Company and Summary of33
1. The Company and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of other income | (Dollar amounts in thousands) 2016 2015 2014 Dividend income-other equity securities $ 775 $ 651 $ 398 Rental income-other real estate owned 144 144 199 All other items 375 497 362 Total other income $ 1,294 $ 1,292 $ 959 |
Schedule of other expense | (Dollar amounts in thousands) 2016 2015 2014 Dues and memberships $ 146 $ 125 $ 115 Real estate appraisals 75 75 64 Training and seminars 54 66 63 Amortization of deposit premium 207 82 60 Mastercard 104 96 101 Armored Transit 113 113 129 OCC Assessment 269 238 221 Operating Losses 188 97 64 All other items 512 390 351 $ 1,668 $ 1,282 $ 1,168 |
Schedule of reconciliation of weighted average shares used in computing basic and diluted earnings per share | (Number of shares in thousands) 2016 2015 2014 Weighted average common shares outstanding-used in computing basic earnings per share 4,822 4,742 4,666 Dilutive effect of stock options outstanding, using the treasury stock method 123 134 148 Shares used in computing diluted earnings per share 4,945 4,876 4,814 Anti-dilutive options not included 69 106 71 |
2. Acquisition (Tables)
2. Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Schedule of fair value of assets acquired and liabilities assumed | America California Bank September 4, (In thousands) 2015 Assets acquired: Cash and due from banks, net of cash paid $ 10,855 Loans 92,962 Premises and equipment, net 62 Bank owned life insurance 2,971 Goodwill 2,739 Core deposit intangible 727 Other assets 4,803 Total assets acquired $ 115,119 Liabilities assumed: Noninterest-bearing deposits $ 14,500 Interest-bearing deposits 75,626 Other liabilities 3,493 Total liabilities assumed: $ 93,619 Merger consideration (all cash) $ 21,500 America California Bank September 4, (In thousands) 2015 Book value of net assets acquired from America California Bank $ 18,138 Fair value adjustments: Loans 2,171 Core deposit intangible asset 727 Time deposits (1,732 ) Other liabilities (243 ) Total purchase accounting adjustments 19,061 Deferred tax liabilities (300 ) Fair value of net assets acquired from America California Bank $ 18,761 Merger consideration $ 21,500 Less fair value of net assets acquired (18,761 ) Goodwill $ 2,739 |
Core deposit intangible amortization | 2021 and In thousands 2017 2018 2019 2020 later Total Core deposit intangible amortization $ 157 $ 1 $ 66 $ 45 $ 101 $ 370 |
Pro Forma Revenue and Earnings | Pro Forma Revenue and Earnings Net (in thousands) Revenue Earnings Actual from September 5, 2015 to December 31, 2015 of America California Bank only $ 1,889 $ 734 2015 supplemental pro forma of the combined entity for the year ended December 31, 2015 42,749 9,458 2014 Supplemental pro forma of the combined entity for the year ended December 31, 2014 44,812 11,404 |
Acquisition related expenses | December 31, (in thousands) 2015 Data processing expense $ 515 Occupancy expense 342 Surety insurance 35 Equipment expense 2 Total $ 894 |
4. Securities Available-for-S35
4. Securities Available-for-Sale (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost and carrying values of securities available-for-sale | (Dollar amounts in thousands) Amortized Unrealized Unrealized Fair cost gains losses value December 31, 2016: U.S. Treasury securities $ 977 $ 10 $ — $ 987 Obligations of U.S. government agencies 60,773 112 (340 ) 60,545 Mortgage-backed securities 85,709 397 (1,822 ) 84,284 Obligations of states and political subdivisions 151,988 1,458 (1,828 ) 151,618 Corporate debt 63,277 121 (727 ) 62,671 $ 362,724 $ 2,098 $ (4,717 ) $ 360,105 December 31, 2015: U.S. Treasury securities $ 7,004 $ 14 $ (18 ) $ 7,000 Obligations of U.S. government agencies 84,842 168 (401 ) 84,609 Mortgage-backed securities 61,579 641 (557 ) 61,663 Obligations of states and political subdivisions 132,125 3,148 (83 ) 135,190 Corporate debt 41,045 50 (350 ) 40,745 $ 326,595 $ 4,021 $ (1,409 ) $ 329,207 |
Schedule of analysis of gross unrealized losses within available-for-sale investment securities portfolio | Total < 12 Months Total 12 Months or > Total Total December 31, 2016: Fair Unrealized Fair Unrealized Fair Unrealized (Dollar amounts in thousands) Value Losses Value Losses Value Losses U. S. Treasury securities $ — $ — $ — $ — $ — $ — Obligations of U.S. government agencies 36,828 (340 ) — — 36,828 (340 ) Mortgage-backed securities 67,990 (1,822 ) — — 67,990 (1,822 ) Obligations of states and political subdivisions 84,728 (1,828 ) — — 84,728 (1,828 ) Corporate debt 41,012 (727 ) — — 41,012 (727 ) Total $ 230,558 $ (4,717 ) $ — $ — $ 230,558 $ (4,717 ) Total < 12 Months Total 12 Months or > Total Total December 31, 2015: Fair Unrealized Fair Unrealized Fair Unrealized (Dollar amounts in thousands) Value Losses Value Losses Value Losses U. S. Treasury securities $ 5,042 $ (18 ) $ — $ — $ 5,042 $ (18 ) Obligations of U.S. government agencies 55,382 (339 ) 4,976 (62 ) 60,358 (401 ) Mortgage-backed securities 19,458 (193 ) 16,714 (364 ) 36,172 (557 ) Obligations of states and political subdivisions 14,988 (73 ) 1,856 (10 ) 16,844 (83 ) Corporate debt 27,130 (300 ) 4,449 (50 ) 31,579 (350 ) Total $ 122,000 $ (923 ) $ 27,995 $ (486 ) $ 149,995 $ (1,409 ) |
Schedule of available-for-sale securities, debt maturities, basis of allocation | (Dollar amounts in thousands) Amortized Fair Cost Value Available-for-sale: Due in one year or less $ 15,908 $ 15,921 Due after one through five years 155,565 155,867 Due after five years through ten years 140,293 138,689 Due after ten years 50,958 49,627 $ 362,724 $ 360,104 (Dollar amounts in thousands) December 31, December 31, Equity Securities 2016 2015 Federal Home Loan Bank stock $ 5,613 $ 5,164 Federal Reserve Bank 1,268 1,261 Pacific Coast Bankers Bank Stock 145 145 Texas Independent Bank stock 176 174 Community Bank of the Bay stock 4 4 Totals $ 7,206 $ 6,748 |
5. Loans (Tables)
5. Loans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of summary of loans | Total FNB Balance Bancorp December 31, (Dollar amounts in thousands) Originated PNCI PCI 2016 Commercial real estate $ 351,261 $ 68,736 $ 1,225 $ 421,222 Real estate construction 43,683 — — 43,683 Real estate multi-family 90,763 15,200 — 105,963 Real estate 1 to 4 family 153,843 16,680 — 170,523 Commercial & industrial 40,140 8,734 — 48,874 Consumer loans 3,533 — — 3,533 Gross loans 683,223 109,350 1,225 793,798 Net deferred loan fees (1,142 ) — — (1,146 ) Allowance for loan losses (10,167 ) — — (10,167 ) Net loans $ 671,914 $ 109,350 $ 1,225 $ 782,485 Total FNB Balance Bancorp December 31 (Dollar amounts in thousands) Originated PNCI PCI 2015 Commercial real estate $ 314,141 $ 84,548 $ 1,304 $ 399,993 Real estate construction 38,909 5,907 — 44,816 Real estate multi-family 47,607 15,990 — 63,597 Real estate 1 to 4 family 153,872 18,092 — 171,964 Commercial & industrial 39,894 12,139 — 52,033 Consumer loans 1,574 — — 1,574 Gross loans 595,997 136,676 1,304 733,977 Net deferred loan fees (1,260 ) — — (1,260 ) Allowance for loan losses (9,970 ) — — (9,970 ) Net loans $ 584,767 $ 136,676 $ 1,304 $ 722,747 |
Schedule of summary of changes in allowance for loan losses | Allowance for Credit Losses As of and For the Year Ended December 31, 2016 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to 4 Commercial Real estate Construction family family & industrial Consumer Total Allowance for credit losses Beginning balance $ 6,059 $ 589 $ 243 $ 2,176 $ 853 $ 50 $ 9,970 Charge-offs — — — (36 ) (164 ) (18 ) (218 ) Recoveries 8 — — 53 204 — 265 Provision 325 28 146 (111 ) (243 ) 5 150 Ending balance $ 6,392 $ 617 $ 389 $ 2,082 $ 650 $ 37 $ 10,167 Ending balance: individually evaluated for impairment $ 50 $ — $ — $ 442 $ 96 $ — $ 588 Ending balance: collectively evaluated for impairment $ 6,342 $ 617 $ 389 $ 1,640 $ 554 $ 37 $ 9,579 Allowance for Credit Losses As of and For the Year Ended December 31, 2015 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to 4 Commercial Real estate Construction family family & industrial Consumer Total Allowance for credit losses Beginning balance $ 5,549 $ 849 $ 206 $ 1,965 $ 1,073 $ 58 $ 9,700 Charge-offs — — — (45 ) — (36 ) (81 ) Recoveries 576 — — 15 60 5 656 Provision (66 ) (260 ) 37 241 (280 ) 23 (305 ) Ending balance $ 6,059 $ 589 $ 243 $ 2,176 $ 853 $ 50 $ 9,970 Ending balance: individually evaluated for impairment $ 96 $ — $ — $ 479 $ 182 $ — $ 757 Ending balance: collectively evaluated for impairment $ 5,963 $ 589 $ 243 $ 1,697 $ 671 $ 50 $ 9,213 Allowance for Credit Losses As of and For the Year Ended December 31, 2014 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to 4 Commercial Real estate Construction family family & industrial Consumer Total Allowance for credit losses Beginning balance $ 5,763 $ 734 $ 293 $ 1,788 $ 1,237 $ 64 $ 9,879 Charge-offs (83 ) (183 ) — (62 ) (28 ) (26 ) (382 ) Recoveries 1,062 — — 3 154 4 1,223 (Recovery of) / provision forr (1,193 ) 298 (87 ) 236 (290 ) 16 (1,020 ) Ending balance $ 5,549 $ 849 $ 206 $ 1,965 $ 1,073 $ 58 $ 9,700 Ending balance: individually evaluated for impairment $ 101 $ — $ — $ 432 $ 225 $ 8 $ 766 Ending balance: collectively evaluated for impairment $ 5,448 $ 849 $ 206 $ 1,533 $ 848 $ 50 $ 8,934 |
Schedule of summary of impaired loans | Recorded Investment in Loans at December 31, 2016 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to 4 Commercial Real Estate Construction family family & industrial Consumer Total Loans: Ending balance $ 421,222 $ 43,683 $ 105,963 $ 170,523 $ 48,874 $ 3,533 $ 793,798 Ending balance: individually evaluated for impairment $ 10,023 $ 843 $ — $ 3,530 $ 1,065 $ — $ 15,461 Ending balance: collectively evaluated for impairment $ 411,199 $ 42,840 $ 105,963 $ 166,993 $ 47,809 $ 3,533 $ 778,337 Recorded Investment in Loans at December 31, 2015 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to 4 Commercial Real Estate Construction family family & industrial Consumer Total Loans: Ending balance $ 399,993 $ 44,816 $ 63,597 $ 171,964 $ 52,033 $ 1,574 $ 733,977 Ending balance: individually evaluated for impairment $ 11,292 $ 2,154 $ — $ 4,218 $ 1,782 $ — $ 19,446 Ending balance: collectively evaluated for impairment $ 388,701 $ 42,662 $ 63,597 $ 167,746 $ 50,251 $ 1,574 $ 714,531 Recorded Investment in Loans at December 31, 2014 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real Estate Construction family 4 family & industrial Consumer Total Loans: Ending balance $ 318,427 $ 39,771 $ 53,824 $ 128,732 $ 51,662 $ 1,448 $ 593,864 Ending balance: individually evaluated for impairment $ 9,530 $ 2,373 $ — $ 4,333 $ 2,315 $ 64 $ 18,615 Ending balance: collectively evaluated for impairment $ 308,897 $ 37,398 $ 53,824 $ 124,399 $ 49,347 $ 1,384 $ 575,249 Impaired Loans As of and for the year ended December 31, 2016 Unpaid Average (Dollar amounts in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no related allowance recorded Commercial real estate $ 8,516 $ 9,026 $ — $ 9,730 $ 716 Commercial real estate construction 843 843 — 857 53 Residential- 1 to 4 family 678 678 — 685 Commercial and industrial 120 120 — 322 25 Consumer — — — — — Total 10,157 10,667 — 11,594 794 With an allowance recorded Commercial real estate $ 1,507 $ 1,507 $ 50 $ 1,528 $ 89 Residential- 1 to 4 family 2,852 2,852 442 3,202 157 Commercial and industrial 945 945 96 1,240 1 Consumer — — — — — Total 5,304 5,304 588 5,970 247 Total Commercial real estate $ 10,023 $ 10,533 $ 50 $ 11,258 $ 805 Commercial real estate construction 843 843 — 857 53 Residential- 1 to 4 family 3,530 3,530 442 3,887 157 Commercial and industrial 1,065 1,065 96 1,562 26 Consumer — — — — — Grand total $ 15,461 $ 15,971 $ 588 $ 17,564 $ 1,041 Impaired Loans As of and for the year ended December 31, 2015 Unpaid Average (Dollar amounts in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no related allowance recorded Commercial real estate $ 8,169 $ 9,271 $ — $ 8,379 $ 282 Commercial real estate construction 2,154 2,337 — 2,264 130 Residential- 1 to 4 family 457 457 — 460 36 Commercial and industrial 524 524 — 731 27 Total 11,304 12,589 — 11,834 475 With an allowance recorded Commercial real estate $ 2,634 $ 2,638 $ 96 $ 2,664 $ 160 Residential- 1 to 4 family 3,761 3,782 479 3,786 149 Commercial and industrial 1,258 1,497 182 1,484 7 Total 7,653 7,917 757 7,934 316 Total Commercial real estate $ 10,803 $ 11,909 $ 96 $ 11,043 $ 442 Commercial real estate construction 2,154 2,337 — 2,264 130 Residential- 1 to 4 family 4,218 4,239 479 4,246 185 Commercial and industrial 1,782 2,021 182 2,215 34 Grand total $ 18,957 $ 20,506 $ 757 $ 19,768 $ 791 Impaired Loans As of and for the year ended December 31, 2014 Unpaid Average (Dollar amounts in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no related allowance recorded Commercial real estate $ 4,462 $ 5,333 $ — $ 4,473 $ 304 Commercial real estate construction 2,373 2,556 — 1,846 150 Residential- 1 to 4 family 1,594 1,737 — 1,379 67 Commercial and industrial 582 939 — 788 54 Consumer — — — — — Total 9,011 10,565 — 8,486 575 With an allowance recorded Commercial real estate $ 5,068 $ 5,071 $ 101 $ 5,127 $ 258 Residential- 1 to 4 family 2,739 2,754 432 2,759 111 Commercial and industrial 1,733 2,100 225 1,907 33 Consumer 64 64 8 67 5 Total 9,604 9,989 766 9,860 407 Total Commercial real estate $ 9,530 $ 10,404 $ 101 $ 9,600 $ 562 Commercial real estate construction 2,373 2,556 — 1,846 150 Residential- 1 to 4 family 4,333 4,491 432 4,138 178 Commercial and industrial 2,315 3,039 225 2,695 87 Consumer 64 64 8 67 5 Grand total $ 18,615 $ 20,554 $ 766 $ 18,346 $ 982 |
Schedule of contractual provisions of non-accrual loans | Loans on Nonaccrual Status as of (Dollar amounts in thousands) December 31, December 31, 2016 2015 Commercial real estate $ 5,553 $ 6,021 Real estate 1 to 4 family 149 636 Commercial & industrial 945 1,258 Consumer — — Total $ 6,647 $ 7,915 |
Schedule of summary of number and principal amounts outstanding for troubled debt restructurings | Total troubled debt restructurings outstanding at year end (dollars in thousands) December 31, 2016 December 31, 2015 Non- Non- Accrual accrual Total Accrual accrual Total status status modifications status status modifications Commercial real estate $ 4,466 $ 4,494 $ 8,960 $ 4,775 $ — $ 4,775 Real estate construction — — — 1,283 — 1,283 Real estate 1 to 4 family 3,381 — 3,381 3,583 2,060 5,643 Commercial & industrial 120 902 1,022 524 1,043 1,567 Total $ 7,967 $ 5,396 $ 13,363 $ 10,165 $ 3,103 $ 13,268 Modifications For the Year Ended December 31, 2016 Pre- Post- Modification Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment (Dollar amounts in thousands) Commercial real estate 2 3,527 3,527 Total 2 $ 3,527 $ 3,527 Modifications For the Year Ended December 31, 2015 Pre- Post- Modification Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment (Dollar amounts in thousands) Real estate 1 to 4 family 1 $ 472 $ 472 Total 1 $ 472 $ 472 Modifications For the Year Ended December 31, 2014 Commercial Pre- Post- Modification Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment (Dollar amounts in thousands) Commercial real estate 3 $ 1,442 $ 1,442 Real estate 1 to 4 family 1 567 567 Total 4 $ 2,009 $ 2,009 |
Schedule of age analysis of past due loans | Age Analysis of Past Due Loans As of December 31, 2016 (Dollar amounts in thousands) 30-59 60-89 Days Days Over Total Past Past 90 Past Total Originated Due Due Days Due Current Loans Commercial real estate $ 835 $ 2 $ — $ 837 $ 350,424 $ 351,261 Real estate construction 645 — 645 43,038 43,683 Real estate multi family — — — — 90,763 90,763 Real estate 1 to 4 family 1,365 61 74 1,500 152,343 153,843 Commercial & industrial 241 — 945 1,186 38,954 40,140 Consumer — — — — 3,533 3,533 Total $ 3,086 $ 63 $ 1,019 $ 4,168 $ 679,055 $ 683,223 Purchased Not credit impaired Commercial real estate $ 1,869 $ 1,909 $ 550 4,328 $ 64,408 $ 68,736 Real estate multi-family — — — — 15,200 15,200 Real estate 1 to 4 family — — 75 75 16,605 16,680 Commercial & industrial 285 — — 285 8,449 8,734 Total $ 2,154 $ 1,909 $ 625 $ 4,688 $ 104,662 $ 109,350 Purchased Credit impaired Commercial real estate $ — $ — $ — $ — $ 1,225 $ 1,225 Real estate construction — — — — — — Real estate multi-family — — — — — — Real estate 1 to 4 family — — — — — — Commercial & industrial — — — — — — Total $ — $ — $ — $ — $ 1,225 $ 1,225 Age Analysis of Past Due Loans As of December 31, 2015 (Dollar amounts in thousands) 30-59 60-89 Days Days Over Total Past Past 90 Past Total Originated Due Due Days Due Current Loans Commercial real estate $ 1,541 $ — $ — $ 1,541 $ 312,600 $ 314,141 Real estate construction 706 725 — 1431 37,478 38,909 Real estate multi family — — — — 47,607 47,607 Real estate 1 to 4 family 1,363 737 71 2,171 151,701 153,872 Commercial & industrial — — 1,258 1,258 38,636 39,894 Consumer — — — — 1,574 1,574 Total $ 3,610 $ 1,462 $ 1,329 $ 6,401 $ 589,596 $ 595,997 Purchased Not credit impaired Commercial real estate $ — $ — $ 3,810 — $ 84,548 $ 84,548 Real estate construction — — — — 5,907 5,907 Real estate multi-family — — — — 15,990 15,990 Real estate 1 to 4 family 175 — — 175 17,917 18,092 Commercial & industrial 70 — — 70 12,069 12,139 Total $ 245 $ — $ 3,810 $ 245 $ 136,431 $ 136,676 Purchased Credit impaired Commercial real estate $ — $ — $ — $ — $ 1,304 $ 1,304 Real estate construction — — — — — — Real estate multi-family — — — — — — Real estate 1 to 4 family — — — — — — Commercial & industrial — — — — — — Total $ — $ — $ — $ — $ 1,304 $ 1,304 |
Schedule of financing receivable credit quality indicators | Credit Quality Indicators As of December 31, 2016 (Dollar amounts in thousands) Special Sub- Total Originated Pass mention standard Doubtful loans Commercial real estate $ 348,785 $ 902 $ 1,574 $ — $ 351,261 Real estate construction 42,840 — 843 — 43,683 Real estate multi-family 90,763 — — — 90,763 Real estate 1 to 4 family 153,769 — 74 — 153,843 Commercial & industrial 39,752 — 384 4 40,140 Consumer loans 3,533 — — — 3,533 Totals $ 679,442 $ 902 $ 2,875 $ 4 $ 683,223 Purchased Not credit impaired Commercial real estate $ 61,705 $ — $ 7,031 $ — $ 68,736 Real estate multi-family 15,200 — — — 15,200 Real estate 1 to 4 family 16,605 — 75 — 16,680 Commercial & industrial 8,644 — 90 — 8,734 Total $ 102,154 $ — $ 7,196 $ — $ 109,350 Purchased Credit impaired Commercial real estate $ 1,225 Total $ 1,225 Credit Quality Indicators As of December 31, 2015 (Dollar amounts in thousands) Special Sub- Total Originated Pass mention standard Doubtful loans Commercial real estate $ 308,164 $ 1,857 $ 4,120 $ — $ 314,141 Real estate construction 37,850 — 1,059 — 38,909 Real estate multi-family 47,607 — — — 47,607 Real estate 1 to 4 family 153,285 — 587 — 153,872 Commercial & industrial 39,287 — 451 156 39,894 Consumer loans 1,574 — — — 1,574 Totals $ 587,767 $ 1,857 $ 6,217 $ 156 $ 595,997 Purchased Not credit impaired Commercial real estate $ 68,936 $ 3,455 $ 12,145 $ 12 $ 84,548 Real estate construction 5,907 — — — 5,907 Real estate multi-family 15,990 — — — 15,990 Real estate 1 to 4 family 18,092 — — — 18,092 Commercial & industrial 12,044 — 95 — 12,139 Total $ 120,969 $ 3,455 $ 12,240 $ 12 $ 136,676 Purchased Credit impaired Commercial real estate $ 1,304 Total $ 1,304 |
6. Foreclosed Assets (Tables)
6. Foreclosed Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Finance Loan And Lease Receivables Held For Investments Foreclosed Assets [Abstract] | |
Schedule of activity of foreclosed assets | Year ended December 31, (Dollar amounts in thousands) 2016 2015 2014 Beginning foreclosed asset balance, net $ 1,026 $ 763 $ 5,318 Additions/transfers from loans 401 263 86 Disposition/sales — — (4,641 ) Valuation adjustments — — — Ending foreclosed asset balance, net $ 1,427 $ 1,026 $ 763 Ending valuation allowance $ — $ — $ — Ending number of foreclosed properties 1 1 1 Proceeds from sale of foreclosed properties $ — $ — $ 1,461 Loans to finance sale of foreclosed properties $ — — 3,400 Gain on sale of foreclosed properties $ — $ — $ 220 |
7. Related Party Transactions (
7. Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Bank premises, equipment and leasehold improvements | (Dollar amounts in thousands) 2016 2015 Buildings $ 10,099 $ 9,885 Equipment & furniture 8,803 8,785 Leasehold improvements 1,496 1,496 20,398 20,166 Accumulated depreciation and amortization (15,275 ) (14,663 ) 5,123 5,503 Land 4,714 4,699 $ 9,837 $ 10,202 |
8. Deposits (Tables)
8. Deposits (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure Text Block [Abstract] | |
Schedule of maturities of all time certificates of deposit | (Dollar amounts in thousands) Year ending December 31: Under $250,000 $250,000 or more Total 2017 $ 44,760 $ 41,301 $ 86,061 2018 12,900 3,141 16,041 2019 9,191 2,111 11,302 2020 190 — 190 2021 790 — 790 $ 67,831 $ 46,553 $ 114,384 |
10. Commitments and Contingen40
10. Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of minimum rental commitments under operating leases | (Dollars in thousands) 2017 $ 1,117 2018 556 2019 359 2020 247 2021 251 Thereafter 653 $ 3,183 |
14. Income Taxes (Tables)
14. Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of provision (benefit) for income taxes | (Dollar amounts in thousands) 2016 2015 2014 Current: Federal $ 4,597 $ 2,929 $ 2,501 State 2,249 1,321 1,466 $ 6,846 $ 4,250 $ 3,967 Deferred: Federal $ (808 ) $ (158 ) $ 1,097 State (342 ) (728 ) 34 (1,150 ) (886 ) 1,131 Total provision for taxes $ 5,696 $ 3,364 $ 5,098 |
Schedule of differences between statutory federal income tax rate and effective tax rates | 2016 2015 2014 Statutory rates 35.0 % 34.0 % 34.0 % Increase (decrease) resulting from: Tax exempt Income for federal purposes -7.1 % -8.2 % -5.4 % State taxes on income, net of federal benefit 7.8 % 3.4 % 6.8 % Benefits from low income housing credits -1.6 % -2.3 % -1.9 % Stock based compensation 1.7 % 2.0 % 1.2 % Other, net -0.6 % 0.2 % 0.4 % Effective tax rate 35.2 % 29.1 % 35.1 % |
Schedule of bank's net deferred tax asset | December 31, (Dollar amounts in thousands) 2016 2015 2014 Deferred tax assets Allowance for loan losses $ 4,661 $ 4,470 $ 4,369 Accrued salaries and officers compensation 3,717 2,770 1,502 Capitalized interest on buildings — — 14 Expenses accrued on books, not yet deductible in tax return 1,908 1,766 1,574 Depreciation 388 399 374 Net operating loss carryforward 1,069 1,335 — Tax credit carryforwards — — 22 Acquisition accounting differences 325 — 601 Unrealized depreciation on available-for-sale securities 1,074 — — 13,142 10,740 8,456 Deferred tax liabilities Unrealized appreciation on available-for-sale securities $ — $ 1,075 $ 1,094 State income taxes 1,156 1,070 613 Core deposit intangible 236 323 34 Expenses and credits deducted on tax return, not on books 933 754 102 Total deferred tax liabilities 2,325 3,222 1,843 Net deferred tax assets (included in other assets) $ 10,817 $ 7,518 6,613 |
15. Financial Instruments (Tabl
15. Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Financial Instruments Disclosure [Abstract] | |
Schedule of financial instruments with credit risk | (Dollars amounts in thousands) December 31 2016 2015 Financial instruments whose contract amounts represent credit risk: Lines of credit $ 103,316 $ 98,396 Other Commercial Commitments: Undisbursed loan commitments 59,249 56,306 Mastercard/Visa lines 5,696 6,722 Standby Letters of credit 4,995 5,830 $ 173,256 $ 167,254 |
16. Fair Value Measurements (Ta
16. Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities measured at fair value on a recurring basis | Fair Value Measurements (Dollar amounts in thousands) at December 31, 2016, Using Quoted Prices in Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets Inputs Inputs Description 12/31/2016 (Level 1) (Level 2) (Level 3) U. S. Treasury securities $ 987 $ 987 $ — $ — Obligations of U.S. Government agencies 60,545 — 60,545 — Mortgage-backed securities 84,284 — 84,284 — Obligations of states and political subdivisions 151,618 — 151,618 — Corporate debt 62,671 — 62,671 — Total assets measured at fair value $ 360,105 $ 987 $ 359,118 $ — Fair Value Measurements (Dollar amounts in thousands) at December 31, 2015, Using Quoted Prices in Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets Inputs Inputs Description 12/31/2015 (Level 1) (Level 2) (Level 3) U. S. Treasury securities $ 7,000 $ 7,000 $ — $ — Obligations of U.S. Government agencies 84,609 — 84,609 — Mortgage-backed securities 61,663 — 61,663 — Obligations of states and political subdivisions 135,190 — 135,190 — Corporate debt 40,745 — 40,745 — Total assets measured at fair value $ 329,207 $ 7,000 $ 322,207 $ — |
Schedule of assets measured at fair value on a non-recurring basis | Fair Value Measurements (Dollar amounts in thousands) at December 31, 2016, Using Quoted Prices in Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets Inputs Inputs Description 12/31/2016 (Level 1) (Level 2) (Level 3) Impaired loans: Commercial real estate $ — $ — $ — $ — Residential-1 to 4 family 67 — — 67 Commercial and industrial 815 — — 815 Other real estate owned 1,427 — — 1,427 Total impaired assets measured at fair value $ 2,309 $ — $ — $ 2,309 Fair Value Measurements (Dollar amounts in thousands) at December 31, 2015, Using Quoted Prices in Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets Inputs Inputs Description 12/31/2015 (Level 1) (Level 2) (Level 3) Impaired loans: Commercial real estate $ 136 $ — $ — $ 136 Residential-1 to 4 family 301 — — 301 Commercial and industrial 1,065 — — 1,065 Other real estate owned 1,026 — — 1,026 Total impaired assets measured at fair value $ 2,528 $ — $ — $ 2,528 |
Schedule of summary information on estimated fair value of financial instruments | December 31, 2016 Carrying Fair Fair value measurements (Dollar amounts in thousands) amount value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 15,758 $ 15,758 $ 15,758 Interest-bearing time deposits with financial institutions 205 205 $ 205 Securities available for sale 360,105 360,105 987 359,118 Loans 782,485 769,661 $ 769,661 Other equity securities 7,206 7,206 7,206 Accrued interest receivable 4,942 4,942 4,942 Financial liabilities: Deposits 1,019,506 1,020,088 951,743 68,345 Federal Home Loan Bank advances 71,000 71,000 71,000 Note payable 4,350 4,350 4,350 Accrued interest payable 246 246 246 Off-balance-sheet liabilities: Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit — 1,733 1,733 December 31, 2015 Carrying Fair Fair value measurements (Dollar amounts in thousands) amount value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 12,314 $ 12,314 $ 12,314 Interest-bearing time deposits with financial institutions 205 205 205 Securities available for sale 329,207 329,207 7,000 322,207 Loans 722,747 713,966 713,966 Other equity securities 6,748 6,748 6,748 Accrued interest receivable 4,511 4,511 4,511 Financial liabilities: Deposits 983,189 983,771 857,759 126,012 Federal Home Loan Bank advances 17,000 17,000 17,000 Note payable 4,950 4,950 4,950 Accrued interest payable 236 236 236 Off-balance-sheet liabilities: Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit — 1,673 1,673 |
18. Regulatory Matters (Tables)
18. Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Regulatory Matters Disclosure [Abstract] | |
Schedule of consolidated actual capital amounts and ratios | Transitional Well-capitalized Minimum Minimum by Regulatory Regulatory Regulatory Definition Requirement Requirement (1) Under FDICIA At December 31, 2016 Effective Effective Effective Company Bank January 1, 2016 January 1, 2019 January 1, 2016 Common Equity Tier 1 Capital 11.32 % 11.59 % 4.50 % 7.00 % 6.50 % Tier 1 Capital 11.32 % 11.59 % 6.00 % 8.50 % 8.00 % Total Capital 12.42 % 12.68 % 8.00 % 10.50 % 10.00 % Leverage ratio 9.02 % 9.27 % 4.00 % 4.00 % 5.00 % (1) Includes 2.5% capital conservation buffer. Transitional Well-capitalized Minimum Minimum by Regulatory Regulatory Regulatory Definition Requirement Requirement (1) Under FDICIA At December 31, 2016 Effective Effective Effective Company Bank January 1, 2016 January 1, 2019 January 1, 2016 Common Equity Tier 1 Capital $ 106,971 $ 109,538 $ 42,533 $ 66,163 $ 61,437 Tier 1 Capital $ 106,971 109,538 56,711 80,341 75,615 Total Capital 117,315 119,882 75,615 99,244 94,518 Leverage Capital 106,971 109,538 47,443 47,443 59,304 Transitional Well-capitalized Minimum Minimum by Regulatory Regulatory Regulatory Definition Requirement Requirement (1) Under FDICIA At December 31, 2015 Effective Effective Effective Company Bank January 1, 2016 January 1, 2019 January 1, 2015 Common Equity Tier 1 Capital 11.54 % 12.14 % 4.50 % 7.00 % 6.50 % Tier 1 Capital 11.54 % 12.14 % 6.00 % 8.50 % 8.00 % Total Capital 12.76 % 13.35 % 8.00 % 10.50 % 10.00 % Leverage ratio 8.64 % 9.08 % 4.00 % 4.00 % 5.00 % (1) Includes 2.5% capital conservation buffer. Transitional Well-capitalized Minimum Minimum by Regulatory Regulatory Regulatory Definition Requirement Requirement (1) Under FDICIA At December 31, 2015 Effective Effective Effective Company Bank January 1, 2016 January 1, 2019 January 1, 2015 Common Equity Tier 1 Capital $ 96,476 $ 101,426 $ 37,609 $ 58,504 $ 54,325 Tier 1 Capital 96,476 $ 101,426 50,145 71,040 66,861 Total Capital 106,623 111,573 66,861 87,755 83,577 Leverage ratio 96,476 101,426 44,675 44,675 55,843 |
19. Stock Option Plans (Tables)
19. Stock Option Plans (Tables) - FNB Bancorp Plan 2008 [Member] | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Schedule of option activity under FNB Bancorp Plan | Weighted- Average 2008 FNB Bancorp Plan Weighted Remaining Aggregate Average Contractual Intrinsic Exercise Term Value Options Shares Price/share (in years) per share Outstanding at January 1, 2016 390,896 $ 17.74 Granted 84,276 $ 31.43 Exercised (48,557 ) $ 12.68 $ 15.32 Forfeited or expired (4,908 ) $ 24.23 Outstanding at December 31, 2016 421,707 $ 20.99 6.9 $ 11.56 Exercisable at December 31, 2016 244,191 $ 17.02 5.7 $ 15.53 Weighted- Average 2002 FNB Bancorp Plan Weighted Remaining Aggregate Average Contractual Intrinsic Exercise Term Value Options Shares Price/share (in years) per share Outstanding at January 1, 2016 64,015 $ 20.22 Granted — — Exercised (43,771 ) $ 20.84 $ 7.05 Forfeited or expired (1,198 ) $ 21.19 Outstanding at December 31, 2016 19,046 $ 18.72 0.5 $ 13.83 Exercisable at December 31, 2016 19,046 $ 18.72 0.5 $ 13.83 Weighted- Average 1997 First National Bank Plan Weighted Remaining Aggregate Average Contractual Intrinsic Exercise Term Value Options Shares Price (in years) (thousands) Outstanding at January 1, 2016 33,882 $ 18.72 Granted — — Exercised (22,805 ) 18.72 Forfeited or expired — — Outstanding at December 31, 2016 11,077 $ 18.72 0.5 $ 13.73 Exercisable at December 31, 2016 11,077 $ 18.72 0.5 $ 13.73 |
Schedule of supplemental information | 2008 FNB Bancorp Plan 2016 2015 2014 Options outstanding 421,707 390,896 357,007 Range of exercise prices/share $ 5.30 to $31.43 $ 5.3017-$24.40 $ 5.30-$24.40 Weighted average remaining contractual life (in years) 6.9 7.0 7.2 Fully vested options 244,191 217,641 183,739 Weighted average exercise price/sh $ 17.02 $ 17.74 $ 14.89 Aggregate intrinsic value $ 4,876,927 $ 4,307,190 $ 3,653,213 Weighted average remaining contractual life (in years) 5.7 5.9 6.0 2002 FNB Bancorp Plan 2016 2015 2014 Options outstanding 19,046 64,015 116,454 Range of exercise prices/share $ 18.72 to $18.72 $ 18.72 to $21.19 $ 16.73 to $21.19 Weighted average remaining contractual life (in years) 0.5 0.9 1.4 Fully vested options 19,046 64,015 116,454 Weighted average exercise price/sh $ 18.72 $ 20.22 $ 19.34 Aggregate intrinsic value $ 263,324 $ 547,108 $ 679,373 Weighted average remaining contractual life (in years) 0.5 0.9 1.4 1997 FNB Bancorp Plan 2016 2015 2014 Options outstanding 11,077 33,882 34,860 Range of exercise prices $ 18.72 $ 18.72 $ 18.72 Weighted average remaining contractual life (in years) 0.5 1.5 2.5 Fully vested options 11,077 33,882 34,860 Weighted average exercise price/sh $ 18.72 $ 18.72 $ 18.72 Aggregate intrinsic value $ 152,593 $ 340,094 $ 224,701 Weighted average remaining contractual life (in years) 0.5 1.5 2.5 |
20. Quarterly Data (Unaudited)
20. Quarterly Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Data (Unaudited) | Per share amounts are adjusted for stock dividends 2016 (Dollars in thousands) First Second Third Fourth Interest income $ 11,565 $ 11,316 $ 11,122 $ 11,510 Interest expense 848 766 721 734 Net interest income 10,717 10,550 10,401 10,776 Provision for loan losses 75 75 — — Net interest income, after provision for loan losses 10,642 10,475 10,401 10,776 Noninterest income 1,134 1,036 1,102 1,323 Noninterest expense 7,787 7,649 7,513 7,743 Income before income taxes 3,989 3,862 3,990 4,356 Provision for income taxes 1,422 1,414 1,546 1,314 Net earnings $ 2,567 $ 2,448 $ 2,444 $ 3,042 Basic earnings per share $ 0.54 $ 0.51 $ 0.50 $ 0.63 Diluted earnings per share $ 0.52 $ 0.50 $ 0.49 $ 0.61 2015 (Dollars in thousands) First Second Third Fourth Interest income $ 9,068 $ 9,300 $ 9,893 $ 11,021 Interest expense 514 595 693 795 Net interest income 8,554 8,705 9,200 10,226 Provision for (recovery) of loan losses 75 75 75 (530 ) Net interest income, after provision for loan losses 8,479 8,630 9,125 10,756 Non-interest income 1,078 1,267 1,024 1,127 Non-interest expense 6,943 6,789 7,479 8,714 Income before income taxes 2,614 3,108 2,670 3,169 Provision for income taxes 815 1,037 431 1,081 Net earnings $ 1,799 $ 2,071 $ 2,239 $ 2,088 Basic earnings per share $ 0.38 0.44 $ 0.48 $ 0.44 Diluted earnings per share $ 0.37 $ 0.43 $ 0.46 $ 0.42 |
21. Condensed Financial Infor47
21. Condensed Financial Information of Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule of condensed balance sheets | FNB Bancorp Condensed balance sheets December 31, (Dollars in thousands) 2016 2015 Assets: Cash and due from banks $ 1,795 $ 1,124 Investments in subsidiary 112,881 107,835 Income tax payable to subsidiary (244 ) (78 ) Dividend receivable from subsidiary 739 649 Other assets 243 242 Total assets $ 115,414 $ 109,772 Liabilities: Dividend declared $ 739 $ 649 Note payable 4,350 4,950 Other liabilities 11 11 Total liabilities 5,100 5,610 Stockholders’ equity 110,314 104,162 Total liabilities and stockholders’ equity $ 115,414 $ 109,772 |
Schedule of condensed statements of earnings | FNB Bancorp Condensed statements of earnings Years Ended December 31, (Dollars in thousands) 2016 2015 2014 Income: Dividends from subsidiary $ 2,890 $ 2,439 $ 10,444 Total income 2,890 2,439 10,444 Expense: Interest on note payable 222 229 192 Other expense 135 128 155 Total expense 357 357 347 Income before income tax benefit and equity in undistributed earnings of subsidiary 2,533 2,082 10,097 Income tax benefit — (56 ) (38 ) Income before equity in undistributed earnings (loss) of subsidiary 2,533 2,138 10,135 Equity in undistributed earnings (loss) of subsidiary 7,968 6,059 (726 ) Net earnings 10,501 8,197 9,409 Dividends and discount accretion on preferred stock — — 170 Net earnings available to common shareholders $ 10,501 $ 8,197 $ 9,239 |
Schedule of condensed statements of cash flows | FNB Bancorp Condensed statement of cash flows Years ended December 31, (Dollars in thousands) 2016 2015 2014 Net earnings $ 10,501 $ 8,197 $ 9,409 Decrease (increase) in income tax receivable from subsidiary 166 165 (38 ) Net increase in dividend receivable and other assets (166) (163 ) (88 ) Net increase (decrease) in other liabilities — 147 (395 ) Excess tax benefit from exercised stock options (600) (222 ) (483 ) Undistributed earnings of subsidiary (7,968 ) (6,059 ) 726 Stock-based compensation expense 513 427 307 Cash flows from operating activities 2,446 2,492 9,438 Investment in subsidiary — (882 ) (6,000 ) Cash flows from investing activities — (882 ) (6,000 ) Repayment of capital purchase program — — (9,450 ) Proceeds from issuance of note payable — — 6,000 Payment on note payable (600 ) (600 ) (450 ) Exercise of stock options 1,115 924 1,216 Excess tax benefit from exercised stock options 600 222 483 Dividends on common stock (2,890 ) (1,786 ) (1,294 ) Cash dividends on preferred stock series A,B,C — — (170 ) Cash flows provided by financing activities (1,775 ) (1,240 ) (3,665 ) Net increase (decrease) in cash 671 370 (227 ) Cash, beginning of year 1,124 754 981 Cash, end of year $ 1,795 $ 1,124 $ 754 Non-cash investing and financing activities: Accrued dividends 738 649 486 Stock dividend of 5% 7,850 6,663 5,468 |
1. The Company and Summary of48
1. The Company and Summary of Significant Accounting Policies (Details) - Summary of Other income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | |||
Dividend income-other equity securities | $ 775 | $ 651 | $ 398 |
Rental Income-other real estate owned | 144 | 144 | 199 |
All other items | 375 | 497 | 362 |
Total other income | $ 1,294 | $ 1,292 | $ 959 |
1. The Company and Summary of49
1. The Company and Summary of Significant Accounting Policies (Details) - Summary of Other expense - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | |||
Dues and memberships | $ 146 | $ 125 | $ 115 |
Real estate appraisals | 75 | 75 | 64 |
Training and seminars | 54 | 66 | 63 |
Amortization of deposit premium | 207 | 82 | 60 |
Mastercard | 104 | 96 | 101 |
Armored Transit | 113 | 113 | 129 |
OCC Assessment | 269 | 238 | 221 |
Operating Losses | 188 | 97 | 64 |
All other items | 512 | 390 | 351 |
Total other expense | $ 1,668 | $ 1,282 | $ 1,168 |
1. The Company and Summary of50
1. The Company and Summary of Significant Accounting Policies (Details) - Weighted average common shares outstanding - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | |||
Weighted average common shares outstanding-used in computing basic earnings per share | 4,822 | 4,516 | 4,444 |
Dilutive effect of stock options outstanding, using the treasury stock method | 123 | 128 | 141 |
Shares used in computing diluted earnings per share | 4,945 | 4,644 | 4,585 |
Anti-dilutive options not included | 69 | 106 | 71 |
1. The Company and Summary of51
1. The Company and Summary of Significant Accounting Policies (Details Narrative) - USD ($) shares in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Oct. 22, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Depreciation Useful Life [Line Items] | ||||
Cash reserve requirements, federal reserve bank, minimum (in dollars) | $ 1,810 | $ 2,186 | ||
Finite-lived intangible assets, estimated useful lives | 7 years | |||
Dividends stock percentage | 5.00% | 5.00% | 5.00% | 5.00% |
Stock dividends, shares (in shares) | 216,000 | |||
Common stock, dividend payment terms | payable at the rate of one share of Common Stock for every twenty (20) shares of Common Stock owned | |||
Unrecognized tax benefits (in dollars) | $ 0 | $ 0 | ||
Tax credit carryforward, description | The federal and state income tax credits are earned over a 10-year period as a result of the investment properties meeting certain criteria and are subject to recapture for noncompliance with such criteria over a 15-year period. | |||
Maximum [Member] | ||||
Depreciation Useful Life [Line Items] | ||||
Property, plant and equipment, estimated useful lives | 50 Years | |||
Minimum [Member] | ||||
Depreciation Useful Life [Line Items] | ||||
Property, plant and equipment, estimated useful lives | 3 Years |
2. Acquisition (Detail) - Table
2. Acquisition (Detail) - Table of Assets Acquired and Liabilities Assumed in Business Acquisition $ in Thousands | Sep. 04, 2015USD ($) |
Assets acquired: | |
Cash and due from banks, net of cash paid | $ 10,855 |
Loans | 92,962 |
Premises and equipment, net | 62 |
Bank owned life insurance | 2,971 |
Goodwill | 2,739 |
Core deposit intangible | 727 |
Other assets | 4,803 |
Total assets acquired | 115,119 |
Liabilities assumed: | |
Noninterest-bearing deposits | 14,500 |
Interest-bearing deposits | 75,626 |
Other liabilities | 3,493 |
Total liabilities assumed | 93,619 |
Net assets acquired | $ 21,500 |
2. Acquisition (Detail)
2. Acquisition (Detail) $ in Thousands | Sep. 04, 2015USD ($) |
Acquisition Detail | |
Book value of net assets acquired from America California Bank | $ 18,138 |
Fair value adjustments: | |
Loans | 2,171 |
Core deposit intangible asset | 727 |
Time deposits | (1,732) |
Other liabilities | (243) |
Total purchase accounting adjustments | 19,061 |
Deferred tax liabilities | (300) |
Fair value of net assets acquired from America California Bank | 18,761 |
Merger consideration | 21,500 |
Less fair value of net assets acquired | (18,761) |
Goodwill | $ 2,739 |
2. Acquisition - Core Deposit I
2. Acquisition - Core Deposit Intangible Amortization (Details 1) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
2,017 | |
Core deposit intangible amortization | $ 157 |
2,018 | |
Core deposit intangible amortization | 1 |
2,019 | |
Core deposit intangible amortization | 66 |
2,020 | |
Core deposit intangible amortization | 45 |
2021 and later | |
Core deposit intangible amortization | 101 |
Total | |
Core deposit intangible amortization | $ 370 |
2. Acquisition - Pro Forma Reve
2. Acquisition - Pro Forma Revenue and Earnings (Details 2) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Actual from September 5, 2015 to December 31, 2015 of America California Bank only | |
Revenues | $ 1,889 |
Net Earnings | 734 |
2015 supplemental pro forma of the combined entity for the year ended December 31, 2015 | |
Revenues | 42,749 |
Net Earnings | 9,458 |
2014 Supplemental pro forma of the combined entity for the year ended December 31, 2014 | |
Revenues | 44,812 |
Net Earnings | $ 11,404 |
2. Acquisition - Acquisition-re
2. Acquisition - Acquisition-related expenses (Details 3) | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Acquisition - Acquisition-related Expenses Details 3 | |
Data processing expense | $ 515 |
Occupancy expense | 342 |
Surety insurance | 35 |
Equipment expense | 2 |
Total | $ 894 |
3. Restricted Cash Balance (Det
3. Restricted Cash Balance (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Restricted Cash Disclosure [Abstract] | ||
Cash reserve requirements, federal reserve bank, minimum | $ 1,810 | $ 2,186 |
4. Securities Available-for-S58
4. Securities Available-for-Sale (Detail) - Summary of Available-for-Sale Securities - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Net Investment Income [Line Items] | ||
Available-for-Sale Securities, Amortized cost | $ 362,724 | $ 326,595 |
Available-for-Sale Securities, Unrealized gains | 2,098 | 4,021 |
Available-for-Sale Securities, Unrealized losses | (4,717) | (1,409) |
Available-for-Sale Securities, Fair value | 360,105 | 329,207 |
US Treasury Securities [Member] | ||
Net Investment Income [Line Items] | ||
Available-for-Sale Securities, Amortized cost | 977 | 7,004 |
Available-for-Sale Securities, Unrealized gains | 10 | 14 |
Available-for-Sale Securities, Unrealized losses | 0 | (18) |
Available-for-Sale Securities, Fair value | 987 | 7,000 |
Obligations of U.S. Government Agencies [Member] | ||
Net Investment Income [Line Items] | ||
Available-for-Sale Securities, Amortized cost | 60,773 | 84,842 |
Available-for-Sale Securities, Unrealized gains | 112 | 168 |
Available-for-Sale Securities, Unrealized losses | (340) | (401) |
Available-for-Sale Securities, Fair value | 60,545 | 84,609 |
Mortgage-backed Securities [Member] | ||
Net Investment Income [Line Items] | ||
Available-for-Sale Securities, Amortized cost | 85,709 | 61,579 |
Available-for-Sale Securities, Unrealized gains | 397 | 641 |
Available-for-Sale Securities, Unrealized losses | (1,822) | (557) |
Available-for-Sale Securities, Fair value | 84,284 | 61,663 |
Obligations of States and Political Subdivisions [Member] | ||
Net Investment Income [Line Items] | ||
Available-for-Sale Securities, Amortized cost | 151,988 | 132,125 |
Available-for-Sale Securities, Unrealized gains | 1,458 | 3,148 |
Available-for-Sale Securities, Unrealized losses | (1,828) | (83) |
Available-for-Sale Securities, Fair value | 151,618 | 135,190 |
Corporate Debt [Member] | ||
Net Investment Income [Line Items] | ||
Available-for-Sale Securities, Amortized cost | 63,277 | 41,045 |
Available-for-Sale Securities, Unrealized gains | 121 | 50 |
Available-for-Sale Securities, Unrealized losses | (727) | (350) |
Available-for-Sale Securities, Fair value | $ 62,671 | $ 40,745 |
4. Securities Available-for-S59
4. Securities Available-for-Sale (Detail) - Gross Unrealized Losses Available-for-Sale Investment Securities - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Available-for-Sale Securities, Total Fair Value | $ 230,558 | $ 122,000 |
Available-for-Sale Securities, less than 12 Months Unrealized Losses | (4,717) | (923) |
Available-for-Sale Securities, Total Fair Value | 0 | 27,995 |
Available-for-Sale Securities, 12 Months or More than Unrealized Losses | 0 | (486) |
Available-for-Sale Securities, Total Fair Value | 230,558 | 149,995 |
Available-for-Sale Securities, Total Unrealized Losses | (4,717) | (1,409) |
US Treasury Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Available-for-Sale Securities, Total Fair Value | 0 | 5,042 |
Available-for-Sale Securities, less than 12 Months Unrealized Losses | 0 | (18) |
Available-for-Sale Securities, Total Fair Value | 0 | 0 |
Available-for-Sale Securities, 12 Months or More than Unrealized Losses | 0 | 0 |
Available-for-Sale Securities, Total Fair Value | 0 | 5,042 |
Available-for-Sale Securities, Total Unrealized Losses | 0 | (18) |
Obligations of U.S. Government Agencies [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Available-for-Sale Securities, Total Fair Value | 36,828 | 55,382 |
Available-for-Sale Securities, less than 12 Months Unrealized Losses | (340) | (337) |
Available-for-Sale Securities, Total Fair Value | 0 | 4,976 |
Available-for-Sale Securities, 12 Months or More than Unrealized Losses | 0 | (62) |
Available-for-Sale Securities, Total Fair Value | 36,828 | 60,358 |
Available-for-Sale Securities, Total Unrealized Losses | (340) | (401) |
Mortgage-backed Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Available-for-Sale Securities, Total Fair Value | 67,990 | 19,458 |
Available-for-Sale Securities, less than 12 Months Unrealized Losses | (1,822) | (193) |
Available-for-Sale Securities, Total Fair Value | 0 | 16,714 |
Available-for-Sale Securities, 12 Months or More than Unrealized Losses | 0 | (364) |
Available-for-Sale Securities, Total Fair Value | 67,990 | 36,172 |
Available-for-Sale Securities, Total Unrealized Losses | (1,822) | (557) |
Obligations of States and Political Subdivisions [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Available-for-Sale Securities, Total Fair Value | 84,728 | 14,988 |
Available-for-Sale Securities, less than 12 Months Unrealized Losses | (1,828) | (74) |
Available-for-Sale Securities, Total Fair Value | 0 | 1,856 |
Available-for-Sale Securities, 12 Months or More than Unrealized Losses | 0 | (10) |
Available-for-Sale Securities, Total Fair Value | 84,728 | 16,844 |
Available-for-Sale Securities, Total Unrealized Losses | (1,828) | (83) |
Corporate Debt [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Available-for-Sale Securities, Total Fair Value | 41,012 | 27,130 |
Available-for-Sale Securities, less than 12 Months Unrealized Losses | (727) | (300) |
Available-for-Sale Securities, Total Fair Value | 0 | 4,449 |
Available-for-Sale Securities, 12 Months or More than Unrealized Losses | 0 | (50) |
Available-for-Sale Securities, Total Fair Value | 41,012 | 31,579 |
Available-for-Sale Securities, Total Unrealized Losses | $ (727) | $ (350) |
4. Securities Available-for-S60
4. Securities Available-for-Sale (Detail) - Summary of Debt Securities by Contractual Maturity - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Available-for-sale: | ||
Due in one year or less, Amortized Cost | $ 15,908 | |
Due in one year or less, Fair Value | 15,921 | |
Due after one through five years, Amortized Cost | 155,565 | |
Due after one through five years, Fair Value | 155,867 | |
Due after five years through ten years, Amortized Cost | 140,293 | |
Due after five years through ten years, Fair Value | 138,689 | |
Due after ten years, Amortized Cost | 50,958 | |
Due after ten years, Fair Value | 49,627 | |
Available-for-sale, Amortized Cost | 362,724 | |
Available-for-Sale Securities, Fair Value | $ 360,105 | $ 329,207 |
4. Securities Available-for-S61
4. Securities Available-for-Sale (Detail) - Equity Securities - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Investments, Debt and Equity Securities [Abstract] | ||
Federal home loan bank stock | $ 5,613 | $ 5,164 |
Federal Reserve Bank | 1,268 | 1,261 |
Pacific Coast Bankers Bank | 145 | 145 |
Texas Independent Bank | 176 | 174 |
Community Bank of the Bay Stock | 4 | 4 |
Totals | $ 7,206 | $ 6,748 |
4. Securities Available-for-S62
4. Securities Available-for-Sale (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Investments, Debt and Equity Securities [Abstract] | ||
Available for sale securities pledged collateral amortized cost | $ 116,240 | $ 101,900 |
Fair Value Securities Pledged | 115,315 | 102,336 |
Federal Reserve Bank stock | $ 1,268 | $ 1,261 |
5. Loans (Detail) - Summary of
5. Loans (Detail) - Summary of Loans - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | $ 782,485 | $ 722,747 |
Net deferred loan fees | (1,146) | (1,260) |
Allowance for loan losses | (10,167) | (9,970) |
Net loans | 782,485 | 722,747 |
Originated [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 683,223 | 595,997 |
Net deferred loan fees | (1,142) | (1,260) |
Allowance for loan losses | (10,167) | (9,970) |
Net loans | 671,914 | 584,767 |
Purchased Not Credit Impaired [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 109,350 | 136,676 |
Net deferred loan fees | 0 | 0 |
Allowance for loan losses | 0 | 0 |
Net loans | 109,350 | 136,676 |
Purchased Credit Impaired [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 1,225 | 1,304 |
Net deferred loan fees | 0 | 0 |
Allowance for loan losses | 0 | 0 |
Net loans | 1,225 | 1,304 |
Commercial Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 421,222 | 399,993 |
Commercial Real Estate [Member] | Originated [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 351,261 | 314,141 |
Commercial Real Estate [Member] | Purchased Not Credit Impaired [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 68,736 | 84,548 |
Commercial Real Estate [Member] | Purchased Credit Impaired [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 1,225 | 1,304 |
Real Estate-construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 43,683 | 44,816 |
Real Estate-construction [Member] | Originated [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 43,683 | 38,909 |
Real Estate-construction [Member] | Purchased Not Credit Impaired [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 0 | 5,907 |
Real Estate-construction [Member] | Purchased Credit Impaired [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 0 | 0 |
Real Estate Multi Family Loan Member | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 105,963 | 63,597 |
Real Estate Multi Family Loan Member | Originated [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 90,763 | 47,607 |
Real Estate Multi Family Loan Member | Purchased Not Credit Impaired [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 15,200 | 15,990 |
Real Estate Multi Family Loan Member | Purchased Credit Impaired [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 0 | 0 |
Real Estate 1 to 4 Family [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 170,523 | 171,964 |
Real Estate 1 to 4 Family [Member] | Originated [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 153,843 | 153,872 |
Real Estate 1 to 4 Family [Member] | Purchased Not Credit Impaired [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 16,680 | 18,092 |
Real Estate 1 to 4 Family [Member] | Purchased Credit Impaired [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 0 | 0 |
Commercial and Industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 48,874 | 52,033 |
Commercial and Industrial [Member] | Originated [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 40,140 | 39,894 |
Commercial and Industrial [Member] | Purchased Not Credit Impaired [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 8,734 | 12,139 |
Commercial and Industrial [Member] | Purchased Credit Impaired [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 0 | 0 |
Consumer Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 3,533 | 1,574 |
Consumer Loans [Member] | Originated [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 3,533 | 1,574 |
Consumer Loans [Member] | Purchased Not Credit Impaired [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 0 | 0 |
Consumer Loans [Member] | Purchased Credit Impaired [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | $ 0 | $ 0 |
5. Loans (Detail) - Summary o64
5. Loans (Detail) - Summary of Allowances for Credit Losses and Recorded Investment in Loans - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for credit losses | |||
Beginning balance | $ 9,970 | $ 9,700 | $ 9,879 |
Charge-offs | (218) | (81) | (382) |
Recoveries | 265 | 656 | 1,223 |
Provision for loan losses | 150 | (305) | (1,020) |
Ending balance | 10,167 | 9,970 | 9,700 |
Ending balance: individually evaluated for impairment | 757 | 766 | |
Ending balance: collectively evaluated for impairment | 9,213 | 8,934 | |
Loans: | |||
Ending balance | 733,977 | 593,864 | |
Ending balance: individually evaluated for impairment | 19,446 | 18,615 | |
Ending balance: collectively evaluated for impairment | 714,531 | 575,249 | |
Commercial Real Estate [Member] | |||
Allowance for credit losses | |||
Beginning balance | 6,059 | 5,549 | 5,763 |
Charge-offs | 0 | 0 | (83) |
Recoveries | 8 | 576 | 1,062 |
Provision for loan losses | 325 | (66) | (1,193) |
Ending balance | 6,392 | 6,059 | 5,549 |
Ending balance: individually evaluated for impairment | 96 | 101 | |
Ending balance: collectively evaluated for impairment | 5,963 | 5,448 | |
Loans: | |||
Ending balance | 399,993 | 318,427 | |
Ending balance: individually evaluated for impairment | 11,292 | 9,530 | |
Ending balance: collectively evaluated for impairment | 388,701 | 308,897 | |
Real Estate-construction [Member] | |||
Allowance for credit losses | |||
Beginning balance | 589 | 849 | 734 |
Charge-offs | 0 | 0 | (183) |
Recoveries | 0 | 0 | 0 |
Provision for loan losses | 28 | (260) | 298 |
Ending balance | 617 | 589 | 849 |
Ending balance: individually evaluated for impairment | 0 | 0 | |
Ending balance: collectively evaluated for impairment | 589 | 849 | |
Loans: | |||
Ending balance | 44,816 | 39,771 | |
Ending balance: individually evaluated for impairment | 2,154 | 2,373 | |
Ending balance: collectively evaluated for impairment | 42,662 | 37,398 | |
Real Estate Multi Family Loan Member | |||
Allowance for credit losses | |||
Beginning balance | 243 | 206 | 293 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Provision for loan losses | 146 | 37 | (87) |
Ending balance | 389 | 243 | 206 |
Ending balance: individually evaluated for impairment | 0 | 0 | |
Ending balance: collectively evaluated for impairment | 243 | 206 | |
Loans: | |||
Ending balance | 63,597 | 53,824 | |
Ending balance: individually evaluated for impairment | 0 | 0 | |
Ending balance: collectively evaluated for impairment | 63,597 | 53,824 | |
Real Estate 1 to 4 Family [Member] | |||
Allowance for credit losses | |||
Beginning balance | 2,176 | 1,965 | 1,788 |
Charge-offs | (36) | (45) | (62) |
Recoveries | 53 | 15 | 3 |
Provision for loan losses | (111) | 241 | 236 |
Ending balance | 2,082 | 2,176 | 1,965 |
Ending balance: individually evaluated for impairment | 479 | 432 | |
Ending balance: collectively evaluated for impairment | 1,697 | 1,533 | |
Loans: | |||
Ending balance | 171,964 | 128,732 | |
Ending balance: individually evaluated for impairment | 4,218 | 4,333 | |
Ending balance: collectively evaluated for impairment | 167,746 | 124,399 | |
Commercial and Industrial [Member] | |||
Allowance for credit losses | |||
Beginning balance | 853 | 1,073 | 1,237 |
Charge-offs | (164) | 0 | (28) |
Recoveries | 204 | 60 | 154 |
Provision for loan losses | (243) | (280) | (290) |
Ending balance | 650 | 853 | 1,073 |
Ending balance: individually evaluated for impairment | 182 | 225 | |
Ending balance: collectively evaluated for impairment | 671 | 848 | |
Loans: | |||
Ending balance | 52,033 | 51,662 | |
Ending balance: individually evaluated for impairment | 1,782 | 2,315 | |
Ending balance: collectively evaluated for impairment | 50,251 | 49,347 | |
Consumer Loans [Member] | |||
Allowance for credit losses | |||
Beginning balance | 50 | 58 | 64 |
Charge-offs | (18) | (36) | (26) |
Recoveries | 0 | 5 | 4 |
Provision for loan losses | 5 | 23 | 16 |
Ending balance | $ 37 | 50 | 58 |
Ending balance: individually evaluated for impairment | 0 | 8 | |
Ending balance: collectively evaluated for impairment | 50 | 50 | |
Loans: | |||
Ending balance | 1,574 | 1,448 | |
Ending balance: individually evaluated for impairment | 0 | 64 | |
Ending balance: collectively evaluated for impairment | $ 1,574 | $ 1,384 |
5. Loans (Detail) - Summary o65
5. Loans (Detail) - Summary of Allowances for Credit Losses and Recorded Investment in Loans - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
With no related allowance recorded | |||
Recorded Investment | $ 10,157 | $ 11,304 | $ 9,011 |
Unpaid Principal Balance | 10,667 | 12,589 | 10,565 |
Related Allowance | 0 | 0 | 0 |
Average recorded Investment | 11,594 | 11,834 | 8,486 |
Income Recognized | 794 | 475 | 575 |
With an allowance recorded | |||
Recorded Investment | 5,304 | 7,653 | 9,604 |
Unpaid Principal Balance | 5,304 | 7,917 | 9,989 |
Related Allowance | 588 | 757 | 766 |
Average recorde Investment | 5,970 | 7,934 | 9,860 |
Income Recognized | 247 | 316 | 407 |
Total | |||
Recorded Investment | 15,461 | 18,957 | 18,615 |
Unpaid Principal Balance | 15,971 | 20,506 | 20,554 |
Related Allowance | 588 | 757 | 766 |
Average recorde Investment | 17,564 | 19,768 | 18,346 |
Income Recognized | 1,041 | 791 | 982 |
Commercial Real Estate [Member] | |||
With no related allowance recorded | |||
Recorded Investment | 8,516 | 8,169 | 4,462 |
Unpaid Principal Balance | 9,026 | 9,271 | 5,333 |
Related Allowance | 0 | 0 | 0 |
Average recorded Investment | 9,730 | 8,379 | 4,473 |
Income Recognized | 716 | 282 | 304 |
With an allowance recorded | |||
Recorded Investment | 1,507 | 2,634 | 5,068 |
Unpaid Principal Balance | 1,507 | 2,638 | 5,071 |
Related Allowance | 50 | 96 | 101 |
Average recorde Investment | 1,528 | 2,664 | 5,127 |
Income Recognized | 89 | 160 | 258 |
Total | |||
Recorded Investment | 10,023 | 10,803 | 9,530 |
Unpaid Principal Balance | 10,533 | 11,909 | 10,404 |
Related Allowance | 50 | 96 | 101 |
Average recorde Investment | 11,258 | 11,043 | 9,600 |
Income Recognized | 805 | 442 | 562 |
Real Estate-construction [Member] | |||
With no related allowance recorded | |||
Recorded Investment | 843 | 2,154 | 2,373 |
Unpaid Principal Balance | 843 | 2,337 | 2,556 |
Related Allowance | 0 | 0 | 0 |
Average recorded Investment | 857 | 2,264 | 1,846 |
Income Recognized | 53 | 130 | 150 |
Total | |||
Recorded Investment | 843 | 2,154 | 2,373 |
Unpaid Principal Balance | 843 | 2,337 | 2,556 |
Related Allowance | 0 | 0 | 0 |
Average recorde Investment | 857 | 2,264 | 1,846 |
Income Recognized | 53 | 130 | 150 |
Real Estate 1 to 4 Family [Member] | |||
With no related allowance recorded | |||
Recorded Investment | 678 | 457 | 1,594 |
Unpaid Principal Balance | 678 | 457 | 1,737 |
Related Allowance | 0 | 0 | 0 |
Average recorded Investment | 685 | 460 | 1,379 |
Income Recognized | 36 | 67 | |
With an allowance recorded | |||
Recorded Investment | 2,852 | 3,761 | 2,739 |
Unpaid Principal Balance | 2,852 | 3,782 | 2,754 |
Related Allowance | 442 | 479 | 432 |
Average recorde Investment | 3,202 | 3,786 | 2,759 |
Income Recognized | 157 | 149 | 111 |
Total | |||
Recorded Investment | 3,530 | 4,218 | 4,333 |
Unpaid Principal Balance | 3,530 | 4,239 | 4,491 |
Related Allowance | 442 | 479 | 432 |
Average recorde Investment | 3,887 | 4,246 | 4,138 |
Income Recognized | 157 | 185 | 178 |
Commercial and Industrial [Member] | |||
With no related allowance recorded | |||
Recorded Investment | 120 | 524 | 582 |
Unpaid Principal Balance | 120 | 524 | 939 |
Related Allowance | 0 | 0 | 0 |
Average recorded Investment | 322 | 731 | 788 |
Income Recognized | 25 | 27 | 54 |
With an allowance recorded | |||
Recorded Investment | 945 | 1,258 | 1,733 |
Unpaid Principal Balance | 945 | 1,497 | 2,100 |
Related Allowance | 96 | 182 | 225 |
Average recorde Investment | 1,240 | 1,484 | 1,907 |
Income Recognized | 1 | 7 | 33 |
Total | |||
Recorded Investment | 1,065 | 1,782 | 2,315 |
Unpaid Principal Balance | 1,065 | 2,021 | 3,039 |
Related Allowance | 96 | 182 | 225 |
Average recorde Investment | 1,562 | 2,215 | 2,695 |
Income Recognized | 26 | 34 | 87 |
Consumer Loans [Member] | |||
With no related allowance recorded | |||
Recorded Investment | 0 | 0 | 0 |
Unpaid Principal Balance | 0 | 0 | 0 |
Related Allowance | 0 | 0 | 0 |
Average recorded Investment | 0 | 0 | 0 |
Income Recognized | 0 | 0 | 0 |
With an allowance recorded | |||
Recorded Investment | 0 | 0 | 64 |
Unpaid Principal Balance | 0 | 0 | 64 |
Related Allowance | 0 | 0 | 8 |
Average recorde Investment | 0 | 0 | 67 |
Income Recognized | 0 | 0 | 5 |
Total | |||
Recorded Investment | 0 | 0 | 64 |
Unpaid Principal Balance | 0 | 0 | 64 |
Related Allowance | 0 | 0 | 8 |
Average recorde Investment | 0 | 0 | 67 |
Income Recognized | $ 0 | $ 0 | $ 5 |
5. Loans (Detail) - Table of Lo
5. Loans (Detail) - Table of Loan on Non-Accrual Status - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Impaired [Line Items] | ||
Nonaccrual loan | $ 6,647 | $ 7,915 |
Commercial Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Nonaccrual loan | 5,553 | 6,021 |
Real Estate 1 to 4 Family [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Nonaccrual loan | 149 | 636 |
Commercial and Industrial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Nonaccrual loan | 945 | 1,258 |
Consumer Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Nonaccrual loan | $ 0 | $ 0 |
5. Loans (Detail) - Table of Im
5. Loans (Detail) - Table of Impaired Loan Modifications $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)Contract | Dec. 31, 2015USD ($)Contract | Dec. 31, 2014USD ($)Contract | |
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | Contract | 2 | 1 | 4 |
Pre- Modification Outstanding Recorded Investment | $ 3,527 | $ 472 | $ 2,009 |
Post- Modification Outstanding Recorded Investment | $ 3,527 | $ 472 | $ 2,009 |
Commercial Real Estate [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | Contract | 2 | 3 | |
Pre- Modification Outstanding Recorded Investment | $ 3,527 | $ 1,442 | |
Post- Modification Outstanding Recorded Investment | $ 3,527 | $ 1,442 | |
Real Estate 1 to 4 Family [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | Contract | 1 | 1 | |
Pre- Modification Outstanding Recorded Investment | $ 472 | $ 567 | |
Post- Modification Outstanding Recorded Investment | $ 472 | $ 567 |
5. Loans (Detail) - Table of Tr
5. Loans (Detail) - Table of Troubled Debt Restructurings - TDR Receivables [Member] - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Modifications [Line Items] | ||
Accrual status | $ 7,967 | $ 10,165 |
Non- accrual status | 5,396 | 3,103 |
Total modifications | 13,363 | 13,268 |
Commercial Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Accrual status | 4,466 | 4,775 |
Non- accrual status | 4,494 | 0 |
Total modifications | 8,960 | 4,775 |
Real Estate-construction [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Accrual status | 0 | 1,283 |
Non- accrual status | 0 | 0 |
Total modifications | 0 | 1,283 |
Real Estate 1 to 4 Family [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Accrual status | 3,381 | 3,583 |
Non- accrual status | 0 | 2,060 |
Total modifications | 3,381 | 5,643 |
Commercial and Industrial [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Accrual status | 120 | 524 |
Non- accrual status | 902 | 1,043 |
Total modifications | $ 1,022 | $ 1,567 |
5. Loans (Detail) - Summary Age
5. Loans (Detail) - Summary Age Analysis of Past Due Loans - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Purchased [Abstract] | ||
Financing receivable, Total Loans | $ 782,485 | $ 722,747 |
Originated [Member] | ||
Purchased [Abstract] | ||
Financing Receivable, 30-59 Days Past Due | 3,086 | 3,610 |
Financing Receivable, Recorded Investment, 60 to 89 Days Past Due | 63 | 1,462 |
Financing Receivable, Over 90 Days | 1,019 | 1,329 |
Financing Receivable, Total Past Due | 4,168 | 6,401 |
Financing Receivable, Current | 679,055 | 589,596 |
Financing receivable, Total Loans | 683,223 | 595,997 |
Originated [Member] | Commercial Real Estate [Member] | ||
Purchased [Abstract] | ||
Financing Receivable, 30-59 Days Past Due | 835 | 1,541 |
Financing Receivable, Recorded Investment, 60 to 89 Days Past Due | 2 | 0 |
Financing Receivable, Over 90 Days | 0 | 0 |
Financing Receivable, Total Past Due | 837 | 1,541 |
Financing Receivable, Current | 350,424 | 312,600 |
Financing receivable, Total Loans | 351,261 | 314,141 |
Originated [Member] | Real Estate-construction [Member] | ||
Purchased [Abstract] | ||
Financing Receivable, 30-59 Days Past Due | 645 | 706 |
Financing Receivable, Recorded Investment, 60 to 89 Days Past Due | 0 | 725 |
Financing Receivable, Over 90 Days | 0 | 0 |
Financing Receivable, Total Past Due | 645 | 1,431 |
Financing Receivable, Current | 43,038 | 37,478 |
Financing receivable, Total Loans | 43,683 | 38,909 |
Originated [Member] | Real Estate Multi Family Loan Member | ||
Purchased [Abstract] | ||
Financing Receivable, 30-59 Days Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, 60 to 89 Days Past Due | 0 | 0 |
Financing Receivable, Over 90 Days | 0 | 0 |
Financing Receivable, Total Past Due | 0 | 0 |
Financing Receivable, Current | 90,763 | 47,607 |
Financing receivable, Total Loans | 90,763 | 47,607 |
Originated [Member] | Real Estate 1 to 4 Family [Member] | ||
Purchased [Abstract] | ||
Financing Receivable, 30-59 Days Past Due | 1,365 | 1,363 |
Financing Receivable, Recorded Investment, 60 to 89 Days Past Due | 61 | 737 |
Financing Receivable, Over 90 Days | 74 | 71 |
Financing Receivable, Total Past Due | 1,500 | 2,171 |
Financing Receivable, Current | 152,343 | 151,701 |
Financing receivable, Total Loans | 153,843 | 153,872 |
Originated [Member] | Commercial and Industrial [Member] | ||
Purchased [Abstract] | ||
Financing Receivable, 30-59 Days Past Due | 241 | 0 |
Financing Receivable, Recorded Investment, 60 to 89 Days Past Due | 0 | 0 |
Financing Receivable, Over 90 Days | 945 | 1,258 |
Financing Receivable, Total Past Due | 1,186 | 1,258 |
Financing Receivable, Current | 38,954 | 38,636 |
Financing receivable, Total Loans | 40,140 | 39,894 |
Originated [Member] | Consumer Loans [Member] | ||
Purchased [Abstract] | ||
Financing Receivable, 30-59 Days Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, 60 to 89 Days Past Due | 0 | 0 |
Financing Receivable, Over 90 Days | 0 | 0 |
Financing Receivable, Total Past Due | 0 | 0 |
Financing Receivable, Current | 3,533 | 1,574 |
Financing receivable, Total Loans | 3,533 | 1,574 |
Purchased Not Credit Impaired [Member] | ||
Purchased [Abstract] | ||
Financing Receivable, 30-59 Days Past Due | 2,154 | 245 |
Financing Receivable, Recorded Investment, 60 to 89 Days Past Due | 1,909 | 0 |
Financing Receivable, Over 90 Days | 625 | 3,810 |
Financing Receivable, Total Past Due | 4,688 | 245 |
Financing Receivable, Current | 104,662 | 136,431 |
Financing receivable, Total Loans | 109,350 | 136,676 |
Purchased Not Credit Impaired [Member] | Commercial Real Estate [Member] | ||
Purchased [Abstract] | ||
Financing Receivable, 30-59 Days Past Due | 1,869 | 0 |
Financing Receivable, Recorded Investment, 60 to 89 Days Past Due | 1,909 | 0 |
Financing Receivable, Over 90 Days | 550 | 3,810 |
Financing Receivable, Total Past Due | 4,328 | 0 |
Financing Receivable, Current | 64,408 | 84,548 |
Financing receivable, Total Loans | 68,736 | 84,548 |
Purchased Not Credit Impaired [Member] | Real Estate-construction [Member] | ||
Purchased [Abstract] | ||
Financing Receivable, 30-59 Days Past Due | 0 | |
Financing Receivable, Recorded Investment, 60 to 89 Days Past Due | 0 | |
Financing Receivable, Over 90 Days | 0 | |
Financing Receivable, Total Past Due | 0 | |
Financing Receivable, Current | 5,907 | |
Financing receivable, Total Loans | 5,907 | |
Purchased Not Credit Impaired [Member] | Real Estate Multi Family Loan Member | ||
Purchased [Abstract] | ||
Financing Receivable, 30-59 Days Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, 60 to 89 Days Past Due | 0 | 0 |
Financing Receivable, Over 90 Days | 0 | 0 |
Financing Receivable, Total Past Due | 0 | 0 |
Financing Receivable, Current | 15,200 | 15,990 |
Financing receivable, Total Loans | 15,200 | 15,990 |
Purchased Not Credit Impaired [Member] | Real Estate 1 to 4 Family [Member] | ||
Purchased [Abstract] | ||
Financing Receivable, 30-59 Days Past Due | 0 | 175 |
Financing Receivable, Recorded Investment, 60 to 89 Days Past Due | 0 | 0 |
Financing Receivable, Over 90 Days | 75 | 0 |
Financing Receivable, Total Past Due | 75 | 175 |
Financing Receivable, Current | 16,605 | 17,917 |
Financing receivable, Total Loans | 16,680 | 18,092 |
Purchased Not Credit Impaired [Member] | Commercial and Industrial [Member] | ||
Purchased [Abstract] | ||
Financing Receivable, 30-59 Days Past Due | 285 | 70 |
Financing Receivable, Recorded Investment, 60 to 89 Days Past Due | 0 | 0 |
Financing Receivable, Over 90 Days | 0 | 0 |
Financing Receivable, Total Past Due | 285 | 70 |
Financing Receivable, Current | 8,449 | 12,069 |
Financing receivable, Total Loans | 8,734 | 12,139 |
Purchased Credit Impaired [Member] | ||
Purchased [Abstract] | ||
Financing Receivable, 30-59 Days Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, 60 to 89 Days Past Due | 0 | 0 |
Financing Receivable, Over 90 Days | 0 | 0 |
Financing Receivable, Total Past Due | 0 | 0 |
Financing Receivable, Current | 1,225 | 1,304 |
Financing receivable, Total Loans | 1,225 | 1,304 |
Purchased Credit Impaired [Member] | Commercial Real Estate [Member] | ||
Purchased [Abstract] | ||
Financing Receivable, 30-59 Days Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, 60 to 89 Days Past Due | 0 | 0 |
Financing Receivable, Over 90 Days | 0 | 0 |
Financing Receivable, Total Past Due | 0 | 0 |
Financing Receivable, Current | 1,225 | 1,304 |
Financing receivable, Total Loans | 1,225 | 1,304 |
Purchased Credit Impaired [Member] | Real Estate-construction [Member] | ||
Purchased [Abstract] | ||
Financing Receivable, 30-59 Days Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, 60 to 89 Days Past Due | 0 | 0 |
Financing Receivable, Over 90 Days | 0 | 0 |
Financing Receivable, Total Past Due | 0 | 0 |
Financing Receivable, Current | 0 | 0 |
Financing receivable, Total Loans | 0 | 0 |
Purchased Credit Impaired [Member] | Real Estate Multi Family Loan Member | ||
Purchased [Abstract] | ||
Financing Receivable, 30-59 Days Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, 60 to 89 Days Past Due | 0 | 0 |
Financing Receivable, Over 90 Days | 0 | 0 |
Financing Receivable, Total Past Due | 0 | 0 |
Financing Receivable, Current | 0 | 0 |
Financing receivable, Total Loans | 0 | 0 |
Purchased Credit Impaired [Member] | Real Estate 1 to 4 Family [Member] | ||
Purchased [Abstract] | ||
Financing Receivable, 30-59 Days Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, 60 to 89 Days Past Due | 0 | 0 |
Financing Receivable, Over 90 Days | 0 | 0 |
Financing Receivable, Total Past Due | 0 | 0 |
Financing Receivable, Current | 0 | 0 |
Financing receivable, Total Loans | 0 | 0 |
Purchased Credit Impaired [Member] | Commercial and Industrial [Member] | ||
Purchased [Abstract] | ||
Financing Receivable, 30-59 Days Past Due | 0 | 0 |
Financing Receivable, Recorded Investment, 60 to 89 Days Past Due | 0 | 0 |
Financing Receivable, Over 90 Days | 0 | 0 |
Financing Receivable, Total Past Due | 0 | 0 |
Financing Receivable, Current | 0 | 0 |
Financing receivable, Total Loans | $ 0 | $ 0 |
5. Loans (Detail) - Table of Cr
5. Loans (Detail) - Table of Credit Quality Indicators - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Purchased | ||
Loans, net | $ 782,485 | $ 722,747 |
Originated [Member] | ||
Purchased | ||
Loans, net | 683,223 | 595,997 |
Purchased Not Credit Impaired [Member] | ||
Purchased | ||
Loans, net | 109,350 | 136,676 |
Purchased Credit Impaired [Member] | ||
Purchased | ||
Loans, net | 1,225 | 1,304 |
Pass [Member] | Originated [Member] | ||
Purchased | ||
Loans, net | 679,442 | 587,767 |
Pass [Member] | Purchased Not Credit Impaired [Member] | ||
Purchased | ||
Loans, net | 102,154 | 120,969 |
Special Mention [Member] | Originated [Member] | ||
Purchased | ||
Loans, net | 902 | 1,857 |
Special Mention [Member] | Purchased Not Credit Impaired [Member] | ||
Purchased | ||
Loans, net | 0 | 3,455 |
Substandard [Member] | Originated [Member] | ||
Purchased | ||
Loans, net | 2,875 | 6,217 |
Substandard [Member] | Purchased Not Credit Impaired [Member] | ||
Purchased | ||
Loans, net | 7,196 | 12,240 |
Doubtful [Member] | Originated [Member] | ||
Purchased | ||
Loans, net | 4 | 156 |
Doubtful [Member] | Purchased Not Credit Impaired [Member] | ||
Purchased | ||
Loans, net | 0 | 12 |
Consumer Loans [Member] | Originated [Member] | ||
Purchased | ||
Loans, net | 3,533 | 1,574 |
Consumer Loans [Member] | Pass [Member] | Originated [Member] | ||
Purchased | ||
Loans, net | 3,533 | 1,574 |
Consumer Loans [Member] | Special Mention [Member] | Originated [Member] | ||
Purchased | ||
Loans, net | 0 | 0 |
Consumer Loans [Member] | Substandard [Member] | Originated [Member] | ||
Purchased | ||
Loans, net | 0 | 0 |
Consumer Loans [Member] | Doubtful [Member] | Originated [Member] | ||
Purchased | ||
Loans, net | 0 | 0 |
Commercial and Industrial [Member] | Originated [Member] | ||
Purchased | ||
Loans, net | 40,140 | 39,894 |
Commercial and Industrial [Member] | Purchased Not Credit Impaired [Member] | ||
Purchased | ||
Loans, net | 8,734 | 12,139 |
Commercial and Industrial [Member] | Pass [Member] | Originated [Member] | ||
Purchased | ||
Loans, net | 39,752 | 39,287 |
Commercial and Industrial [Member] | Pass [Member] | Purchased Not Credit Impaired [Member] | ||
Purchased | ||
Loans, net | 8,644 | 12,044 |
Commercial and Industrial [Member] | Special Mention [Member] | Originated [Member] | ||
Purchased | ||
Loans, net | 0 | 0 |
Commercial and Industrial [Member] | Special Mention [Member] | Purchased Not Credit Impaired [Member] | ||
Purchased | ||
Loans, net | 0 | 0 |
Commercial and Industrial [Member] | Substandard [Member] | Originated [Member] | ||
Purchased | ||
Loans, net | 384 | 451 |
Commercial and Industrial [Member] | Substandard [Member] | Purchased Not Credit Impaired [Member] | ||
Purchased | ||
Loans, net | 90 | 95 |
Commercial and Industrial [Member] | Doubtful [Member] | Originated [Member] | ||
Purchased | ||
Loans, net | 4 | 156 |
Commercial and Industrial [Member] | Doubtful [Member] | Purchased Not Credit Impaired [Member] | ||
Purchased | ||
Loans, net | 0 | 0 |
Real Estate 1 to 4 Family [Member] | Originated [Member] | ||
Purchased | ||
Loans, net | 153,843 | 153,872 |
Real Estate 1 to 4 Family [Member] | Purchased Not Credit Impaired [Member] | ||
Purchased | ||
Loans, net | 16,680 | 18,092 |
Real Estate 1 to 4 Family [Member] | Pass [Member] | Originated [Member] | ||
Purchased | ||
Loans, net | 153,769 | 153,285 |
Real Estate 1 to 4 Family [Member] | Pass [Member] | Purchased Not Credit Impaired [Member] | ||
Purchased | ||
Loans, net | 16,605 | 18,092 |
Real Estate 1 to 4 Family [Member] | Special Mention [Member] | Originated [Member] | ||
Purchased | ||
Loans, net | 0 | 0 |
Real Estate 1 to 4 Family [Member] | Special Mention [Member] | Purchased Not Credit Impaired [Member] | ||
Purchased | ||
Loans, net | 0 | 0 |
Real Estate 1 to 4 Family [Member] | Substandard [Member] | Originated [Member] | ||
Purchased | ||
Loans, net | 74 | 587 |
Real Estate 1 to 4 Family [Member] | Substandard [Member] | Purchased Not Credit Impaired [Member] | ||
Purchased | ||
Loans, net | 75 | 0 |
Real Estate 1 to 4 Family [Member] | Doubtful [Member] | Originated [Member] | ||
Purchased | ||
Loans, net | 0 | 0 |
Real Estate 1 to 4 Family [Member] | Doubtful [Member] | Purchased Not Credit Impaired [Member] | ||
Purchased | ||
Loans, net | 0 | 0 |
Real Estate Multi Family Loan Member | Originated [Member] | ||
Purchased | ||
Loans, net | 90,763 | 47,607 |
Real Estate Multi Family Loan Member | Purchased Not Credit Impaired [Member] | ||
Purchased | ||
Loans, net | 15,200 | 15,990 |
Real Estate Multi Family Loan Member | Pass [Member] | Originated [Member] | ||
Purchased | ||
Loans, net | 90,763 | 47,607 |
Real Estate Multi Family Loan Member | Pass [Member] | Purchased Not Credit Impaired [Member] | ||
Purchased | ||
Loans, net | 15,200 | 15,990 |
Real Estate Multi Family Loan Member | Special Mention [Member] | Originated [Member] | ||
Purchased | ||
Loans, net | 0 | 0 |
Real Estate Multi Family Loan Member | Special Mention [Member] | Purchased Not Credit Impaired [Member] | ||
Purchased | ||
Loans, net | 0 | 0 |
Real Estate Multi Family Loan Member | Substandard [Member] | Originated [Member] | ||
Purchased | ||
Loans, net | 0 | 0 |
Real Estate Multi Family Loan Member | Substandard [Member] | Purchased Not Credit Impaired [Member] | ||
Purchased | ||
Loans, net | 0 | 0 |
Real Estate Multi Family Loan Member | Doubtful [Member] | Originated [Member] | ||
Purchased | ||
Loans, net | 0 | 0 |
Real Estate Multi Family Loan Member | Doubtful [Member] | Purchased Not Credit Impaired [Member] | ||
Purchased | ||
Loans, net | 0 | 0 |
Real Estate-construction [Member] | Originated [Member] | ||
Purchased | ||
Loans, net | 43,683 | 38,909 |
Real Estate-construction [Member] | Purchased Not Credit Impaired [Member] | ||
Purchased | ||
Loans, net | 5,907 | |
Real Estate-construction [Member] | Pass [Member] | Originated [Member] | ||
Purchased | ||
Loans, net | 42,840 | 37,850 |
Real Estate-construction [Member] | Pass [Member] | Purchased Not Credit Impaired [Member] | ||
Purchased | ||
Loans, net | 5,907 | |
Real Estate-construction [Member] | Special Mention [Member] | Originated [Member] | ||
Purchased | ||
Loans, net | 0 | 0 |
Real Estate-construction [Member] | Special Mention [Member] | Purchased Not Credit Impaired [Member] | ||
Purchased | ||
Loans, net | 0 | |
Real Estate-construction [Member] | Substandard [Member] | Originated [Member] | ||
Purchased | ||
Loans, net | 843 | 1,059 |
Real Estate-construction [Member] | Substandard [Member] | Purchased Not Credit Impaired [Member] | ||
Purchased | ||
Loans, net | 0 | |
Real Estate-construction [Member] | Doubtful [Member] | Originated [Member] | ||
Purchased | ||
Loans, net | 0 | 0 |
Real Estate-construction [Member] | Doubtful [Member] | Purchased Not Credit Impaired [Member] | ||
Purchased | ||
Loans, net | 0 | |
Commercial Real Estate [Member] | Originated [Member] | ||
Purchased | ||
Loans, net | 351,261 | 314,141 |
Commercial Real Estate [Member] | Purchased Not Credit Impaired [Member] | ||
Purchased | ||
Loans, net | 68,736 | 84,548 |
Commercial Real Estate [Member] | Purchased Credit Impaired [Member] | ||
Purchased | ||
Loans, net | 1,225 | 1,304 |
Commercial Real Estate [Member] | Pass [Member] | Originated [Member] | ||
Purchased | ||
Loans, net | 348,785 | 308,164 |
Commercial Real Estate [Member] | Pass [Member] | Purchased Not Credit Impaired [Member] | ||
Purchased | ||
Loans, net | 61,705 | 68,936 |
Commercial Real Estate [Member] | Special Mention [Member] | Originated [Member] | ||
Purchased | ||
Loans, net | 902 | 1,857 |
Commercial Real Estate [Member] | Special Mention [Member] | Purchased Not Credit Impaired [Member] | ||
Purchased | ||
Loans, net | 0 | 3,455 |
Commercial Real Estate [Member] | Substandard [Member] | Originated [Member] | ||
Purchased | ||
Loans, net | 1,574 | 4,120 |
Commercial Real Estate [Member] | Substandard [Member] | Purchased Not Credit Impaired [Member] | ||
Purchased | ||
Loans, net | 7,031 | 12,145 |
Commercial Real Estate [Member] | Doubtful [Member] | Originated [Member] | ||
Purchased | ||
Loans, net | 0 | 0 |
Commercial Real Estate [Member] | Doubtful [Member] | Purchased Not Credit Impaired [Member] | ||
Purchased | ||
Loans, net | $ 0 | $ 12 |
5. Loans (Details Narrative)
5. Loans (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |||
Nonaccrual Loans | $ 6,647 | $ 7,915 | |
Interest income on impaired loans | 1,041 | 791 | $ 982 |
Interest income on impaired loans not collected | 569 | 460 | 91 |
Cumulative unpaid interest on impaired loans | $ 3,973 | $ 3,405 | $ 2,944 |
Troubled Debt Restructuring, Debtor, Current Period, Description of Changes in Terms | During the years ended December 31, 2016, 2015 and 2014, no loans defaulted within twelve months following the date of restructure. All restructurings were a modification of interest rate and/or payment. There were no principal reductions granted. |
6. Foreclosed Assets - Activity
6. Foreclosed Assets - Activity in the balance of foreclosed assets (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Finance Loan And Lease Receivables Held For Investments Foreclosed Assets [Abstract] | |||
Beginning balance, net | $ 1,026 | $ 763 | $ 5,318 |
Additions/transfers from loans | 401 | 263 | 86 |
Disposition/sales | 0 | 0 | (4,641) |
Valuation adjustments | 0 | 0 | 0 |
Ending balance, net | 1,427 | 1,026 | 763 |
Ending valuation allowance | $ 0 | $ 0 | |
Ending number of foreclosed assets | 1 | 1 | |
Proceeds from sale of foreclosed assets | 0 | $ 0 | $ 1,461 |
Loans to finance sale of Other Real Estate Owned | 0 | 0 | 3,400 |
Gain on sale of foreclosed assets | $ 0 | $ 0 | $ 220 |
7. Related Party Transactions73
7. Related Party Transactions (Detail) - Table of Related Party Transactions - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Related Party Transactions [Abstract] | ||
Buildings | $ 10,099 | $ 9,885 |
Equipment & furniture | 8,803 | 8,785 |
Leasehold improvements | 1,496 | 1,496 |
Property plant and Equipment, gross | 20,398 | 20,166 |
Accumulated depreciation and amortization | (15,275) | (14,663) |
Property plant and equipment, less depreciation and amortization | 5,123 | 5,503 |
Land | 4,714 | 4,699 |
Property plant and equipment, net | $ 9,837 | $ 10,202 |
8. Deposits (Detail) - Summary
8. Deposits (Detail) - Summary of Maturities of all Time Certificates of Deposit - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
2,017 | $ 86,061 | |
2,018 | 16,041 | |
2,019 | 11,302 | |
2,020 | 190 | |
2,021 | 790 | |
Total, maturities of all time certificates of deposit | 114,384 | $ 125,430 |
$250000 | ||
2,017 | 44,760 | |
2,018 | 12,900 | |
2,019 | 9,191 | |
2,020 | 190 | |
2,021 | 790 | |
Total, maturities of all time certificates of deposit | 67,831 | |
$250,000 or more | ||
2,017 | 41,301 | |
2,018 | 3,141 | |
2,019 | 2,111 | |
2,020 | 0 | |
2,021 | 0 | |
Total, maturities of all time certificates of deposit | $ 46,553 |
8. Deposits (Details Narrative)
8. Deposits (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Disclosure Text Block [Abstract] | ||
Aggregate amount of time certificates each with minimum denomination of $250,000 or more | $ 46,553 | $ 50,988 |
9. Federal Home Loan Bank Adv76
9. Federal Home Loan Bank Advances and Note Payable (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank (''FHLB'') borrowings outstanding | $ 71,000 | $ 17,000 |
Federal Home Loan Bank of San Francisco [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank (''FHLB'') borrowings outstanding | 71,000 | 17,000 |
Maximum borrowing capacity under (''FHLB") | 452,318 | 332,000 |
Federal Home Loan Bank advances available | 380,809 | 317,000 |
Federal Home Loan Bank of San Francisco [Member] | Fhlb Advance At 0.61 Percent Due On 3 January 2017 [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank (''FHLB'') borrowings outstanding | 10,000 | |
Federal Home Loan Bank of San Francisco [Member] | Fhlb Advance At 0.55 Percent Due On 5 January 2017 [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank (''FHLB'') borrowings outstanding | 7,000 | |
Federal Home Loan Bank of San Francisco [Member] | Fhlb Advance At 0.49 Percent Due On 9 January 2017 [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank (''FHLB'') borrowings outstanding | 7,000 | |
Federal Home Loan Bank of San Francisco [Member] | Fhlb Advance At 0.63 Percent Due On 27 January 2017 [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank (''FHLB'') borrowings outstanding | 11,000 | |
Federal Home Loan Bank of San Francisco [Member] | Fhlb Advance At 0.63 Percent Due On 30 January 2017 [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank (''FHLB'') borrowings outstanding | 6,000 | |
Federal Home Loan Bank of San Francisco [Member] | Fhlb Advance At 0.61 Percent Due On 30 January 2017 [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank (''FHLB'') borrowings outstanding | 10,000 | |
Federal Home Loan Bank of San Francisco [Member] | Fhlb Advance At 0.67 Percent Due On 28 February 2017 [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank (''FHLB'') borrowings outstanding | $ 20,000 | |
Federal Home Loan Bank of San Francisco [Member] | Fhlb Advance At 0.27 Percent Due On 4 January 2016 [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank (''FHLB'') borrowings outstanding | 2,000 | |
Federal Home Loan Bank of San Francisco [Member] | Fhlb Advance At 0.42 Percent Due On 11 January 2016 [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank (''FHLB'') borrowings outstanding | $ 15,000 |
10. Commitments and Contingen77
10. Commitments and Contingencies (Detail) - Table of Operating Lease Commitments $ in Thousands | Dec. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 1,117 |
2,018 | 556 |
2,019 | 359 |
2,020 | 247 |
2,021 | 251 |
Thereafter | 653 |
Total | $ 3,183 |
10. Commitments and Contingen78
10. Commitments and Contingencies (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent expense for operating leases | $ 1,127 | $ 1,092 | $ 1,161 |
11. Salary Deferral Plan (Detai
11. Salary Deferral Plan (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension And Other Postretirement Benefits Disclosure [Abstract] | |||
Percentage of qualifying employees wages as a profit sharing contribution | 0.03 | ||
Accrued contribution to 401(k) plan | $ 315 | $ 355 | $ 358 |
Profit sharing contibution | $ 100,000 |
12. Salary Continuation and D80
12. Salary Continuation and Deferred Compensation Plans (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Pension Plan [Line Items] | |||
Accrued compensation payable under the salary continuation plan | $ 1,860 | $ 1,786 | $ 463 |
Salary Continuation Plan [Member] | |||
Pension Plan [Line Items] | |||
Accrued compensation payable under the salary continuation plan | 6,659 | 5,028 | |
Deferred Compensation Plan [Member] | |||
Pension Plan [Line Items] | |||
Accrued compensation payable under the salary continuation plan | $ 1,790 | $ 1,543 |
13. Preferred Stock (Details Na
13. Preferred Stock (Details Narrative) $ in Thousands | May 06, 2013USD ($) |
Stockholders' Equity Note [Abstract] | |
Preferred stock, redemption amount percentage | 25.00% |
Preferred stock, redemption amount | $ 3,150 |
Preferred stock value | $ 12,600 |
14. Income Taxes (Detail) - Tab
14. Income Taxes (Detail) - Table of Income Taxes - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | |||
Income tax provision (benefit), current | $ 6,846 | $ 4,250 | $ 3,967 |
Deferred: | |||
Income tax provision (benefit), deferred | (1,150) | (886) | 1,131 |
Total provision for taxes | 5,696 | 3,364 | 5,098 |
Federal [Member] | |||
Current: | |||
Income tax provision (benefit), current | 4,597 | 2,929 | 2,501 |
Deferred: | |||
Income tax provision (benefit), deferred | (808) | (158) | 1,097 |
State [Member] | |||
Current: | |||
Income tax provision (benefit), current | 2,249 | 1,321 | 1,466 |
Deferred: | |||
Income tax provision (benefit), deferred | $ (342) | $ (728) | $ 34 |
14. Income Taxes (Detail) - Sum
14. Income Taxes (Detail) - Summary of Federal Income Tax Differences in Statutory and Effective Tax Rates in Percentages | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Statutory rates | 35.00% | 34.00% | 34.00% |
Increase (decrease) resulting from: | |||
Tax exempt Income for federal purposes | (7.10%) | (8.20%) | (5.40%) |
State taxes on income, net of federal benefit | 7.80% | 3.40% | 6.80% |
Benefits from low income housing credits | (1.60%) | (2.30%) | (1.90%) |
True-up of prior year provision | (0.00%) | (0.00%) | (0.10%) |
Stock based compensation | 1.70% | 2.00% | 1.20% |
Valuation reserve addition (reversal) | 0.00% | 0.00% | 0.00% |
Other, net | (0.60%) | 0.20% | 0.50% |
Effective tax rate | 35.20% | 29.10% | 35.10% |
14. Income Taxes (Detail) - T84
14. Income Taxes (Detail) - Table of Deferred Tax Assets and Liabilities - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets | |||
Allowance for loan losses | $ 10,167 | $ 9,970 | |
Assets [Member] | |||
Deferred tax assets | |||
Allowance for loan losses | 4,661 | 4,470 | $ 4,369 |
Accrued salaries and officers compensation | 3,717 | 2,770 | 1,502 |
Capitalized interest on buildings | 0 | 0 | 14 |
Expenses accrued on books, not yet deductible in tax return | 1,908 | 1,766 | 1,574 |
Depreciation | 388 | 399 | 374 |
Net operating loss carryforward | 1,069 | 1,335 | 0 |
Tax credit carryforwards | 0 | 0 | 22 |
Acquisition accounting differences | 325 | 0 | 601 |
Unrealized depreciation on available-for-sale securities | 1,074 | 0 | 0 |
Deferred tax assets, net | 13,142 | 10,740 | 8,456 |
Liability [Member] | |||
Deferred tax liabilities | |||
Unrealized appreciation on available-for-sale securities | 0 | 1,075 | 1,094 |
State income taxes | 1,156 | 1,070 | 613 |
Core deposit intangible | 236 | 323 | 34 |
Expenses and credits deducted on tax return, not on books | 933 | 754 | 102 |
Total deferred tax liabilities | 2,325 | 3,222 | 1,843 |
Net deferred tax assets (included in other assets) | $ 10,817 | $ 7,518 | $ 6,613 |
15. Financial Instruments (Deta
15. Financial Instruments (Detail) - Summary of Financial Instruments whose contract amounts represent Credit Risk - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Financial instruments whose contract amounts represent credit risk: | ||
Credit risk of financial instruments | $ 173,256 | $ 167,254 |
Lines Of Credit [Member] | ||
Financial instruments whose contract amounts represent credit risk: | ||
Credit risk of financial instruments | 103,316 | 98,396 |
Undisbursed Loan Commitments Member | ||
Financial instruments whose contract amounts represent credit risk: | ||
Credit risk of financial instruments | 59,249 | 56,306 |
Master Card Visa Lines [Member] | ||
Financial instruments whose contract amounts represent credit risk: | ||
Credit risk of financial instruments | 5,696 | 6,722 |
Letter of Credit [Member] | ||
Financial instruments whose contract amounts represent credit risk: | ||
Credit risk of financial instruments | $ 4,995 | $ 5,830 |
15. Financial Instruments (De86
15. Financial Instruments (Details Narrative) $ in Thousands | Dec. 31, 2016USD ($) |
Financial [Member] | |
Letters Of Credit [Line Items] | |
Standby letters of credit | $ 881 |
Performance [Member] | |
Letters Of Credit [Line Items] | |
Standby letters of credit | $ 12 |
16. Fair Value Measurements (De
16. Fair Value Measurements (Detail) - Table of Assets and Liabilities Measured at Fair Value on a Recurring Basis - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
U. S. Treasury securities | $ 987 | $ 7,000 |
Obligations of U.S. Government agencies | 60,545 | 84,609 |
Mortgage-backed securities | 84,284 | 61,663 |
Obligations of states and political subdivisions | 151,618 | 135,190 |
Corporate debt | 62,671 | 40,745 |
Total assets measured at fair value | 360,105 | 329,207 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
U. S. Treasury securities | 987 | 7,000 |
Obligations of U.S. Government agencies | 0 | 0 |
Mortgage-backed securities | 0 | 0 |
Obligations of states and political subdivisions | 0 | 0 |
Corporate debt | 0 | 0 |
Total assets measured at fair value | 987 | 7,000 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
U. S. Treasury securities | 0 | 0 |
Obligations of U.S. Government agencies | 60,545 | 84,609 |
Mortgage-backed securities | 84,284 | 61,663 |
Obligations of states and political subdivisions | 151,618 | 135,190 |
Corporate debt | 62,671 | 40,745 |
Total assets measured at fair value | 359,118 | 322,207 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
U. S. Treasury securities | 0 | 0 |
Obligations of U.S. Government agencies | 0 | 0 |
Mortgage-backed securities | 0 | 0 |
Obligations of states and political subdivisions | 0 | 0 |
Corporate debt | 0 | 0 |
Total assets measured at fair value | $ 0 | $ 0 |
16. Fair Value Measurements (88
16. Fair Value Measurements (Detail) - Table of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired assets measured at fair value | $ 2,309 | $ 1,502 |
Commercial Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired assets measured at fair value | 0 | 136 |
Real Estate 1 to 4 Family [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired assets measured at fair value | 67 | 301 |
Commercial and Industrial [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired assets measured at fair value | 815 | 1,065 |
Consumer [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired assets measured at fair value | 0 | |
Other Real Estate Owned [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired assets measured at fair value | 1,427 | |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired assets measured at fair value | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Commercial Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired assets measured at fair value | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Real Estate 1 to 4 Family [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired assets measured at fair value | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Commercial and Industrial [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired assets measured at fair value | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Consumer [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired assets measured at fair value | 0 | |
Fair Value, Inputs, Level 1 [Member] | Other Real Estate Owned [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired assets measured at fair value | 0 | |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired assets measured at fair value | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Commercial Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired assets measured at fair value | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Real Estate 1 to 4 Family [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired assets measured at fair value | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Commercial and Industrial [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired assets measured at fair value | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Consumer [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired assets measured at fair value | 0 | |
Fair Value, Inputs, Level 2 [Member] | Other Real Estate Owned [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired assets measured at fair value | 0 | |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired assets measured at fair value | 2,309 | 1,502 |
Fair Value, Inputs, Level 3 [Member] | Commercial Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired assets measured at fair value | 0 | 136 |
Fair Value, Inputs, Level 3 [Member] | Real Estate 1 to 4 Family [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired assets measured at fair value | 67 | 301 |
Fair Value, Inputs, Level 3 [Member] | Commercial and Industrial [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired assets measured at fair value | 815 | 1,065 |
Fair Value, Inputs, Level 3 [Member] | Consumer [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired assets measured at fair value | $ 0 | |
Fair Value, Inputs, Level 3 [Member] | Other Real Estate Owned [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired assets measured at fair value | $ 1,427 |
16. Fair Value Measurements (89
16. Fair Value Measurements (Detail) - Table of Estimated Fair Value of Assets and Liabilities - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Financial assets: | ||||
Cash and cash equivalents, Carrying amount | $ 15,758 | $ 12,314 | $ 14,978 | $ 14,007 |
Cash and cash equivalents, Fair value | 15,758 | 12,314 | ||
Interest-bearing time deposits with financial Institutions, Carrying amount | 205 | 205 | ||
Interest-bearing time deposits with financial institutions, Fair value | 205 | 205 | ||
Securities available for sale, Carrying amount | 360,105 | 329,207 | ||
Securities available-for-sale, Fair value | 360,105 | 329,207 | ||
Loans, net, Carrying amount | 782,485 | 722,747 | ||
Loans, net ,Fair value | 769,661 | 713,966 | ||
Other equity securities, Carrying amount | 7,206 | 6,748 | ||
Other equity securities, Fair Value | 7,206 | 6,748 | ||
Accrued interest receivable, Carrying amount | 4,942 | 4,511 | ||
Accrued interest receivable,Fair value | 4,942 | 4,511 | ||
Financial liabilities: | ||||
Deposits, Carrying amount | 1,019,506 | 983,189 | ||
Deposits, Fair value | 1,020,088 | 983,771 | ||
Federal Home Loan Bank advances, Carrying amount | 71,000 | 17,000 | ||
Federal Home Loan Bank advances, Fair value | 71,000 | 17,000 | ||
Note payable, Carrying amount | 4,350 | 4,950 | ||
Note payable, Fair value | 4,350 | 4,950 | ||
Accrued interest payable, Carrying amount | 246 | 236 | ||
Accrued interest payable, Fair value | 246 | 236 | ||
Off-balance-sheet liabilities: | ||||
Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit, Fair value | 1,733 | 1,673 | ||
Fair Value, Inputs, Level 1 [Member] | ||||
Financial assets: | ||||
Cash and cash equivalents, Carrying amount | ||||
Cash and cash equivalents, Fair value | 15,758 | 12,314 | ||
Interest-bearing time deposits with financial Institutions, Carrying amount | ||||
Interest-bearing time deposits with financial institutions, Fair value | ||||
Securities available for sale, Carrying amount | ||||
Securities available-for-sale, Fair value | 987 | 7,000 | ||
Loans, net, Carrying amount | ||||
Loans, net ,Fair value | ||||
Other equity securities, Carrying amount | ||||
Other equity securities, Fair Value | ||||
Accrued interest receivable, Carrying amount | ||||
Accrued interest receivable,Fair value | 4,942 | 4,511 | ||
Financial liabilities: | ||||
Deposits, Carrying amount | ||||
Deposits, Fair value | 951,743 | 857,759 | ||
Federal Home Loan Bank advances, Carrying amount | ||||
Federal Home Loan Bank advances, Fair value | ||||
Note payable, Carrying amount | ||||
Note payable, Fair value | ||||
Accrued interest payable, Carrying amount | ||||
Accrued interest payable, Fair value | 246 | 236 | ||
Off-balance-sheet liabilities: | ||||
Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit, Fair value | ||||
Fair Value, Inputs, Level 2 [Member] | ||||
Financial assets: | ||||
Cash and cash equivalents, Carrying amount | ||||
Cash and cash equivalents, Fair value | ||||
Interest-bearing time deposits with financial Institutions, Carrying amount | ||||
Interest-bearing time deposits with financial institutions, Fair value | 205 | 205 | ||
Securities available for sale, Carrying amount | ||||
Securities available-for-sale, Fair value | 359,118 | 322,207 | ||
Loans, net, Carrying amount | ||||
Loans, net ,Fair value | ||||
Other equity securities, Carrying amount | ||||
Other equity securities, Fair Value | ||||
Accrued interest receivable, Carrying amount | ||||
Accrued interest receivable,Fair value | ||||
Financial liabilities: | ||||
Deposits, Carrying amount | ||||
Deposits, Fair value | 68,345 | 125,430 | ||
Federal Home Loan Bank advances, Carrying amount | ||||
Federal Home Loan Bank advances, Fair value | 71,000 | 17,000 | ||
Note payable, Carrying amount | ||||
Note payable, Fair value | 4,350 | 4,950 | ||
Accrued interest payable, Carrying amount | ||||
Accrued interest payable, Fair value | ||||
Off-balance-sheet liabilities: | ||||
Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit, Fair value | ||||
Fair Value, Inputs, Level 3 [Member] | ||||
Financial assets: | ||||
Cash and cash equivalents, Carrying amount | ||||
Cash and cash equivalents, Fair value | ||||
Interest-bearing time deposits with financial Institutions, Carrying amount | ||||
Interest-bearing time deposits with financial institutions, Fair value | ||||
Securities available for sale, Carrying amount | ||||
Securities available-for-sale, Fair value | ||||
Loans, net, Carrying amount | ||||
Loans, net ,Fair value | 769,661 | 713,966 | ||
Other equity securities, Carrying amount | ||||
Other equity securities, Fair Value | 7,206 | 6,748 | ||
Accrued interest receivable, Carrying amount | ||||
Accrued interest receivable,Fair value | ||||
Financial liabilities: | ||||
Deposits, Carrying amount | ||||
Deposits, Fair value | ||||
Federal Home Loan Bank advances, Carrying amount | ||||
Federal Home Loan Bank advances, Fair value | ||||
Note payable, Carrying amount | ||||
Note payable, Fair value | ||||
Accrued interest payable, Carrying amount | ||||
Accrued interest payable, Fair value | ||||
Off-balance-sheet liabilities: | ||||
Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit, Fair value | $ 1,733 | $ 1,673 |
18. Regulatory Matters (Detail)
18. Regulatory Matters (Detail) - Summary of Consolidated Actual Capital and Ratios - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Transitional Minimum Regulatory Requirement [Member] | ||
Risk Based Capital [Line Items] | ||
Total risk-based capital, Actual Amount | $ 75,615 | $ 66,861 |
Total risk-based capital, Actual Ratio | 8.00% | 8.00% |
Tier 1 capital , Actual, Amount | $ 56,711 | $ 50,145 |
Tier 1 capital, Actual, Ratio | 6.00% | 6.00% |
Tier 1 leverage capital , Actual, Amount | $ 42,533 | $ 37,609 |
Tier 1 leverage capital, Actual,Ratio | 4.50% | 4.50% |
Tier 1 leverage capital, For capital adequacy purposes, Amount | $ 47,443 | $ 44,675 |
Tier 1 leverage capital, For capital adequacy purposes, Ratio | 4.00% | 4.00% |
Minimum Regulatory Requirement (January 1, 2019) [Member] | ||
Risk Based Capital [Line Items] | ||
Total risk-based capital, Actual Amount | $ 99,244 | $ 87,755 |
Total risk-based capital, Actual Ratio | 10.50% | 10.50% |
Tier 1 capital , Actual, Amount | $ 80,341 | $ 71,040 |
Tier 1 capital, Actual, Ratio | 8.50% | 8.50% |
Tier 1 leverage capital , Actual, Amount | $ 66,163 | $ 58,504 |
Tier 1 leverage capital, Actual,Ratio | 7.00% | 7.00% |
Tier 1 leverage capital, For capital adequacy purposes, Amount | $ 47,443 | $ 44,675 |
Tier 1 leverage capital, For capital adequacy purposes, Ratio | 4.00% | 4.00% |
Well-capitalized by Regulatory Definition [Member] | ||
Risk Based Capital [Line Items] | ||
Total risk-based capital, Actual Amount | $ 94,518 | $ 83,577 |
Total risk-based capital, Actual Ratio | 10.00% | |
Total risk-based capital,To be well capitalized under prompt corrective action provisions, Ratio | 10.00% | |
Tier 1 capital , Actual, Amount | $ 75,615 | $ 66,861 |
Tier 1 capital, Actual, Ratio | 8.00% | |
Tier 1 capital ,To be well capitalized under prompt corrective action provisions, Ratio | 8.00% | |
Tier 1 leverage capital , Actual, Amount | $ 61,437 | $ 54,325 |
Tier 1 leverage capital, Actual,Ratio | 6.50% | |
Tier 1 leverage capital, For capital adequacy purposes, Amount | $ 59,304 | $ 55,843 |
Tier 1 leverage capital, For capital adequacy purposes, Ratio | 5.00% | |
Tier 1 leverage capital,To be well capitalized under prompt corrective action provisions, Ratio | 5.00% | |
Consolidated Company [Member] | ||
Risk Based Capital [Line Items] | ||
Total risk-based capital, Actual Amount | $ 117,315 | $ 106,623 |
Total risk-based capital, Actual Ratio | 12.42% | 12.76% |
Tier 1 capital , Actual, Amount | $ 106,971 | $ 96,476 |
Tier 1 capital, Actual, Ratio | 11.32% | 11.54% |
Tier 1 leverage capital , Actual, Amount | $ 106,971 | $ 96,476 |
Tier 1 leverage capital, Actual,Ratio | 11.32% | 11.54% |
Tier 1 leverage capital, For capital adequacy purposes, Amount | $ 106,971 | $ 96,476 |
Tier 1 leverage capital, For capital adequacy purposes, Ratio | 9.02% | 8.64% |
Bank [Member] | ||
Risk Based Capital [Line Items] | ||
Total risk-based capital, Actual Amount | $ 119,882 | $ 111,573 |
Total risk-based capital, Actual Ratio | 12.68% | 13.35% |
Tier 1 capital , Actual, Amount | $ 109,538 | $ 101,426 |
Tier 1 capital, Actual, Ratio | 11.59% | 12.14% |
Tier 1 leverage capital , Actual, Amount | $ 109,538 | $ 101,426 |
Tier 1 leverage capital, Actual,Ratio | 11.59% | 12.14% |
Tier 1 leverage capital, For capital adequacy purposes, Amount | $ 109,538 | $ 101,426 |
Tier 1 leverage capital, For capital adequacy purposes, Ratio | 9.27% | 6.99% |
19. Stock Option Plans (Detail)
19. Stock Option Plans (Detail) - Table of Stock Option Plans | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
FNB Bancorp Plan 2008 [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Outstanding at January 1, 2016 ,Shares | shares | 390,896 |
Outstanding at January 1, 2016, Weighted Average Exercise Price (in dollars per share) | $ 17.74 |
Granted shares | shares | 84,276 |
Granted, Weighted Average Exercise Price (in dollars per share) | $ 31.43 |
Exercised, Shares | shares | (48,557) |
Exercised, Weighted Average Exercise Price (in dollars per share) | $ 12.68 |
Exercised, Aggregate Intrinsic Value (in dollars per share) | $ 15.32 |
Forfeited or expired, Shares | shares | (4,908) |
Forfeited or expired, Weighted Average Exercise Price (in dollars per share) | $ 24.23 |
Outstanding at December 31, 2016, Shares | shares | 421,707 |
Outstanding at December 31, 2016, Weighted Average Exercise Price (in dollars per share) | $ 20.99 |
Outstanding at December 31, 2016, Weighted- Average Remaining Contractual Term (in years) | 6 years 10 months 24 days |
Outstanding at December 31, 2016, Aggregate Intrinsic Value (in dollars per share) | $ 11.56 |
Exercisable at December 31, 2016, Shares | shares | 244,191 |
Exercisable at December 31, 2016, Weighted Average Exercise Price (in dollars per share) | $ 17.02 |
Exercisable at December 31, 2016, Weighted- Average Remaining Contractual Term (in years) | 5 years 8 months 12 days |
Exercisable at December 31, 2016, Aggregate Intrinsic Value (in dollars per share) | $ 15.53 |
FNB Bancorp Plan 2002 [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Outstanding at January 1, 2016 ,Shares | shares | 64,015 |
Outstanding at January 1, 2016, Weighted Average Exercise Price (in dollars per share) | $ 20.22 |
Granted shares | shares | 0 |
Exercised, Shares | shares | (43,771) |
Exercised, Weighted Average Exercise Price (in dollars per share) | $ 20.84 |
Exercised, Aggregate Intrinsic Value (in dollars per share) | $ 7.05 |
Forfeited or expired, Shares | shares | (1,198) |
Forfeited or expired, Weighted Average Exercise Price (in dollars per share) | $ 21.19 |
Outstanding at December 31, 2016, Shares | shares | 108,984 |
Outstanding at December 31, 2016, Weighted Average Exercise Price (in dollars per share) | $ 18.72 |
Outstanding at December 31, 2016, Weighted- Average Remaining Contractual Term (in years) | 6 months |
Outstanding at December 31, 2016, Aggregate Intrinsic Value (in dollars per share) | $ 13.83 |
Exercisable at December 31, 2016, Shares | shares | 19,046 |
Exercisable at December 31, 2016, Weighted Average Exercise Price (in dollars per share) | $ 18.72 |
Exercisable at December 31, 2016, Weighted- Average Remaining Contractual Term (in years) | 6 months |
Exercisable at December 31, 2016, Aggregate Intrinsic Value (in dollars per share) | $ 13.83 |
FNB Bancorp Bank 1997 [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Outstanding at January 1, 2016 ,Shares | shares | 33,882 |
Outstanding at January 1, 2016, Weighted Average Exercise Price (in dollars per share) | $ 18.72 |
Granted shares | shares | 0 |
Granted, Weighted Average Exercise Price (in dollars per share) | $ 0 |
Exercised, Shares | shares | 22,805 |
Exercised, Weighted Average Exercise Price (in dollars per share) | $ 18.72 |
Forfeited or expired, Shares | shares | 0 |
Forfeited or expired, Weighted Average Exercise Price (in dollars per share) | $ 0 |
Outstanding at December 31, 2016, Shares | shares | 11,077 |
Outstanding at December 31, 2016, Weighted Average Exercise Price (in dollars per share) | $ 18.72 |
Outstanding at December 31, 2016, Weighted- Average Remaining Contractual Term (in years) | 6 months |
Outstanding at December 31, 2016, Aggregate Intrinsic Value (in dollars per share) | $ 13.73 |
Exercisable at December 31, 2016, Shares | shares | 11,077 |
Exercisable at December 31, 2016, Weighted Average Exercise Price (in dollars per share) | $ 18.72 |
Exercisable at December 31, 2016, Weighted- Average Remaining Contractual Term (in years) | 6 months |
Exercisable at December 31, 2016, Aggregate Intrinsic Value (in dollars per share) | $ 13.73 |
19. Stock Option Plans (Detai92
19. Stock Option Plans (Detail) - Table of Stock Options Plan Supplemental Information - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
FNB Bancorp Plan 2008 [Member] | |||
Pension Plan [Line Items] | |||
Options outstanding | 421,707 | 372,185 | 334,109 |
Range of exercise prices - lower | $ 30 | $ 5.57 | $ 5.57 |
Range of exercise prices - upper | $ 31.43 | $ 29.05 | $ 25.62 |
Weighted average remaining contractual life | 6 years 10 months 24 days | 7 years | 7 years 2 months 12 days |
Fully vested options | 244,191 | 207,288 | 178,711 |
Weighted average exercise price | $ 17.02 | $ 14.87 | $ 11.8 |
Aggregate intrinsic value (in dollars) | $ 4,876,927 | $ 3,176,856 | $ 2,613,994 |
Weighted average remaining contractual life (in years) | 5 years 8 months 12 days | 5 years 10 months 24 days | 6 years 1 month 6 days |
FNB Bancorp Plan 2002 [Member] | |||
Pension Plan [Line Items] | |||
Options outstanding | 19,046 | 60,962 | 110,866 |
Range of exercise prices - lower | $ 18.72 | $ 19.66 | $ 17.57 |
Range of exercise prices - upper | $ 18.72 | $ 22.25 | $ 22.25 |
Weighted average remaining contractual life | 6 months | 10 months 24 days | 1 year 4 months 24 days |
Fully vested options | 19,046 | 60,962 | 110,866 |
Weighted average exercise price | $ 18.72 | $ 21.23 | $ 20.3 |
Aggregate intrinsic value (in dollars) | $ 263,324 | $ 547,066 | $ 679,302 |
Weighted average remaining contractual life (in years) | 6 months | 10 months 24 days | 1 year 4 months 24 days |
FNB Bancorp Bank 1997 [Member] | |||
Pension Plan [Line Items] | |||
Options outstanding | 11,077 | 32,267 | 32,267 |
Range of exercise prices - lower | $ 18.72 | $ 19.66 | $ 19.66 |
Range of exercise prices - upper | $ 18.72 | $ 19.66 | $ 19.66 |
Weighted average remaining contractual life | 6 months | 1 year 6 months | 2 years 6 months |
Fully vested options | 11,077 | 32,267 | 32,267 |
Weighted average exercise price | $ 18.72 | $ 19.66 | $ 19.66 |
Aggregate intrinsic value (in dollars) | $ 152,593 | $ 340,078 | $ 224,693 |
Weighted average remaining contractual life (in years) | 6 months | 1 year 6 months | 2 years 6 months |
19. Stock Option Plans (Detai93
19. Stock Option Plans (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share Based Compensation Options Terms [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, number of shares authorized (in shares) | 404,766 | |||
Allocated share-based compensation expense (in dollars) | $ 513 | $ 427 | $ 307 | |
Income tax benefit related to stock option exercises | 0 | 483 | $ 354 | |
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized, stock options (in dollars) | $ 1,061 | $ 743 | ||
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized, period for recognition | 4 years | 3 years 7 months 6 days | ||
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected dividend rate | 1.96% | 1.49% | ||
Share-based compensation arrangement by share-based payment award, fair value assumptions, risk free interest rate | 2.14% | 2.08% | ||
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected volatility rate | 41.00% | 41.85% | ||
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected term | 9 years 1 month 6 days | 9 years 1 month 6 days | ||
Share-based compensation arrangement by share-based payment award, options, grants in period, weighted average grant date fair value (in dollars per share) | $ 11.82 | $ 4.08 |
20. Quarterly Data (Unaudited94
20. Quarterly Data (Unaudited) (Detail) - Summary of Quarterly Data - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Period [Line Items] | |||
Interest income | $ 45,513 | $ 39,282 | $ 36,859 |
Interest expense | 3,069 | 2,597 | 2,093 |
Net interest income | 42,444 | 36,685 | 34,766 |
Provision for loan losses | 150 | (305) | (1,020) |
Net interest income, after provision for loan losses | 42,294 | 36,990 | 35,786 |
Income before income taxes | 16,197 | 11,561 | 14,507 |
Provision for income taxes | 5,696 | 3,364 | 5,098 |
Net earnings | 10,501 | 8,197 | 9,409 |
Net earnings available to common shareholders | $ 10,501 | $ 8,197 | $ 9,239 |
Basic earnings per share | $ 2.18 | $ 1.82 | $ 2.08 |
Diluted earnings per share | $ 2.12 | $ 1.77 | $ 2.02 |
First Quarter [Member] | |||
Period [Line Items] | |||
Interest income | $ 11,565 | $ 9,068 | |
Interest expense | 848 | 514 | |
Net interest income | 10,717 | 8,554 | |
Provision for loan losses | 75 | 75 | |
Net interest income, after provision for loan losses | 10,642 | 8,479 | |
Noninterest income | 1,134 | 1,078 | |
Noninterest expense | 7,787 | 6,943 | |
Income before income taxes | 3,989 | 2,614 | |
Provision for income taxes | 1,422 | 815 | |
Net earnings | $ 2,567 | ||
Net earnings available to common shareholders | $ 1,799 | ||
Basic earnings per share | $ 0.54 | $ 0.4 | |
Diluted earnings per share | $ 0.52 | $ 0.39 | |
Second Quarter [Member] | |||
Period [Line Items] | |||
Interest income | $ 11,316 | $ 9,300 | |
Interest expense | 766 | 595 | |
Net interest income | 10,550 | 8,705 | |
Provision for loan losses | 75 | 75 | |
Net interest income, after provision for loan losses | 10,475 | 8,630 | |
Noninterest income | 1,036 | 1,267 | |
Noninterest expense | 7,649 | 6,789 | |
Income before income taxes | 3,862 | 3,108 | |
Provision for income taxes | 1,414 | 1,037 | |
Net earnings | $ 2,448 | ||
Net earnings available to common shareholders | $ 2,071 | ||
Basic earnings per share | $ 0.51 | $ 0.46 | |
Diluted earnings per share | $ 0.5 | $ 0.45 | |
Third Quarter [Member] | |||
Period [Line Items] | |||
Interest income | $ 11,122 | $ 9,893 | |
Interest expense | 721 | 693 | |
Net interest income | 10,401 | 9,200 | |
Provision for loan losses | 0 | 75 | |
Net interest income, after provision for loan losses | 10,401 | 9,125 | |
Noninterest income | 1,102 | 1,024 | |
Noninterest expense | 7,513 | 7,479 | |
Income before income taxes | 3,990 | 2,670 | |
Provision for income taxes | 1,546 | 431 | |
Net earnings | $ 2,444 | ||
Net earnings available to common shareholders | $ 2,239 | ||
Basic earnings per share | $ 0.5 | $ 0.5 | |
Diluted earnings per share | $ 0.49 | $ 0.48 | |
Fourth Quarter [Member] | |||
Period [Line Items] | |||
Interest income | $ 11,510 | $ 11,021 | |
Interest expense | 734 | 795 | |
Net interest income | 10,776 | 10,226 | |
Provision for loan losses | 0 | (530) | |
Net interest income, after provision for loan losses | 10,776 | 10,756 | |
Noninterest income | 1,323 | 1,127 | |
Noninterest expense | 7,743 | 8,714 | |
Income before income taxes | 4,356 | 3,169 | |
Provision for income taxes | 1,314 | 1,081 | |
Net earnings | $ 3,042 | ||
Net earnings available to common shareholders | $ 2,088 | ||
Basic earnings per share | $ 0.63 | $ 0.46 | |
Diluted earnings per share | $ 0.61 | $ 0.45 |
21. Condensed Financial Infor95
21. Condensed Financial Information of Parent Company (Detail) - Condensed Balance Sheet of Parent Company - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets: | ||||
Cash and due from banks | $ 15,758 | $ 12,314 | ||
Other assets | 15,746 | 15,967 | ||
Total assets | 1,219,394 | 1,124,349 | ||
Liabilities: | ||||
Total liabilities | 1,109,080 | 1,020,187 | ||
Stockholders' equity | 110,314 | 104,162 | $ 97,088 | $ 94,249 |
Total liabilities and stockholders' equity | 1,219,394 | 1,124,349 | ||
Parent [Member] | ||||
Assets: | ||||
Cash and due from banks | 1,795 | 1,124 | ||
Investments in subsidiary | 112,881 | 107,835 | ||
Income tax (payable) receivable from subsidiary | (244) | (78) | ||
Dividend receivable from subsidiary | 739 | 649 | ||
Other assets | 243 | 242 | ||
Total assets | 115,414 | 109,772 | ||
Liabilities: | ||||
Dividend declared | 739 | 649 | ||
Note payable | 4,350 | 4,950 | ||
Other liabilities | 11 | 11 | ||
Total liabilities | 5,100 | 5,610 | ||
Stockholders' equity | 110,314 | 104,162 | ||
Total liabilities and stockholders' equity | $ 115,414 | $ 109,772 |
21. Condensed Financial Infor96
21. Condensed Financial Information of Parent Company (Detail) - Condensed Statement of Earnings - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Expense: | |||
Interest on note payable | $ 222 | $ 229 | $ 192 |
Provision for income taxes | 5,696 | 3,364 | 5,098 |
Income before equity in undistributed earnings of subsidiary | 16,197 | 11,561 | 14,507 |
Net earnings | 10,501 | 8,197 | 9,409 |
Net earnings available to common shareholders | 10,501 | 8,197 | 9,239 |
Parent [Member] | |||
Income: | |||
Dividends from subsidiary | 2,439 | 10,444 | |
Total income | 2,439 | 10,444 | |
Expense: | |||
Interest on note payable | 229 | 192 | |
Other expense | 128 | 155 | |
Total expense | 357 | 347 | |
Income before income tax (benefit) and equity in undistributed earnings of subsidiary | 2,082 | 10,097 | |
Provision for income taxes | (56) | (38) | |
Income before equity in undistributed earnings of subsidiary | 2,138 | 10,135 | |
Equity in undistributed (loss) earnings of subsidiary | 6,059 | (726) | |
Net earnings | $ 10,501 | 8,197 | 9,409 |
Dividends and discount accretion on preferred stock | 0 | 170 | |
Net earnings available to common shareholders | $ 8,197 | $ 9,239 |
21. Condensed Financial Infor97
21. Condensed Financial Information of Parent Company (Detail) - Condensed Statement of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net earnings | $ 10,501 | $ 8,197 | $ 9,409 |
Stock-based compensation expense | 513 | 427 | 307 |
Cash flows from operating activities | 14,693 | 10,876 | 11,100 |
Cash flows from investing activities | (99,929) | (120,934) | (19,043) |
Proceeds from issuance of note payable | 0 | 0 | 6,000 |
Payment on note payable | (600) | (600) | (450) |
Exercise of stock options | 1,115 | 924 | 1,216 |
Excess tax benefit from exercised stock options | 0 | 0 | 483 |
Cash flows provided by financing activities | 87,942 | 107,394 | 8,914 |
Non-cash investing and financing activities: | |||
Accrued dividends | 738 | 648 | 486 |
Stock dividend of 5% | 0 | 0 | |
Parent [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net earnings | 10,501 | 8,197 | 9,409 |
Decrease (increase) in income tax receivable from subsidiary | 166 | 165 | (38) |
Net increase in dividend receivable and other assets | (166) | (163) | (88) |
Net (decrease) increase in other liabilities | 0 | 147 | (395) |
Excess tax benefit from exercised stock options | (600) | (222) | (483) |
Distributions in excess of earnings (loss) (undistributed earnings of subsidiary) | (7,968) | (6,059) | 726 |
Stock-based compensation expense | 513 | 427 | 307 |
Cash flows from operating activities | 2,446 | 2,492 | 9,438 |
Investment in subsidiary | 0 | (882) | (6,000) |
Cash flows from investing activities | 0 | (882) | (6,000) |
Repayment of capital purchase program | 0 | 0 | (9,450) |
Proceeds from issuance of note payable | 0 | 0 | 6,000 |
Payment on note payable | (600) | (600) | (450) |
Exercise of stock options | 1,115 | 924 | 1,216 |
Excess tax benefit from exercised stock options | 600 | 222 | 483 |
Dividends on common stock | (2,890) | (1,786) | (1,294) |
Cash dividends on preferred stock series A, B, C | 0 | 0 | (170) |
Cash flows provided by financing activities | (1,775) | (1,240) | (3,665) |
Net (decrease) increase in cash | 671 | 370 | (227) |
Cash, beginning of year | 1,124 | 754 | 981 |
Cash, end of year | 1,795 | 1,124 | 754 |
Non-cash investing and financing activities: | |||
Accrued dividends | 738 | 649 | 486 |
Stock dividend of 5% | $ 7,850 | $ 6,663 | $ 5,468 |