Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 03, 2017 | Jun. 30, 2016 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | SELECT BANCORP, INC. | ||
Entity Central Index Key | 1,263,762 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Accelerated Filer | ||
Entity Public Float | $ 81,083,042 | ||
Trading Symbol | SLCT | ||
Entity Common Stock, Shares Outstanding | 11,659,571 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and due from banks | $ 14,372 | $ 12,567 |
Interest-earning deposits in other banks | 40,342 | 49,842 |
Certificates of deposit | 1,000 | 1,000 |
Investment securities available for sale, at fair value | 62,257 | 80,709 |
Loans | 677,195 | 617,398 |
Allowance for loan losses | (8,411) | (7,021) |
NET LOANS | 668,784 | 610,377 |
Accrued interest receivable | 2,768 | 2,350 |
Stock in Federal Home Loan Bank of Atlanta (“FHLB”), at cost | 2,251 | 2,112 |
Other non-marketable securities | 703 | 705 |
Foreclosed real estate | 599 | 1,401 |
Premises and equipment, net | 17,931 | 19,078 |
Bank owned life insurance | 22,183 | 21,592 |
Goodwill | 6,931 | 6,931 |
Core deposit intangible (“CDI”) | 810 | 1,241 |
Assets held for sale | 846 | 846 |
Other assets | 4,863 | 6,264 |
TOTAL ASSETS | 846,640 | 817,015 |
Deposits: | ||
Demand | 163,569 | 148,304 |
Savings | 38,394 | 37,353 |
Money market and NOW | 174,205 | 179,450 |
Time | 303,493 | 286,054 |
TOTAL DEPOSITS | 679,661 | 651,161 |
Short-term debt | 37,090 | 29,673 |
Long-term debt | 23,039 | 28,703 |
Accrued interest payable | 221 | 232 |
Accrued expenses and other liabilities | 2,356 | 2,544 |
TOTAL LIABILITIES | 742,367 | 712,313 |
Shareholders’ Equity | ||
Preferred stock, no par value, 5,000,000 shares authorized; 0 and 7,645 shares issued and outstanding at December 31, 2016 and 2015, respectively | 0 | 7,645 |
Common stock, $1 par value, 25,000,000 shares authorized; 11,645,413 and 11,583,011 shares issued and outstanding at December 31, 2016 and 2015, respectively | 11,645 | 11,583 |
Additional paid-in capital | 69,597 | 69,061 |
Retained earnings | 22,673 | 15,923 |
Common stock issued to deferred compensation trust, at cost, 280,432 and 253,538 shares outstanding at December 31, 2016 and 2015, respectively | (2,340) | (2,139) |
Directors’ Deferred Compensation Plan Rabbi Trust | 2,340 | 2,139 |
Accumulated other comprehensive income | 358 | 490 |
TOTAL SHAREHOLDERS’ EQUITY | 104,273 | 104,702 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 846,640 | $ 817,015 |
CONSOLIDATED BALANCE SHEETS _Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Issued | 0 | 7,645 |
Preferred Stock, Shares Outstanding | 0 | 7,645 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 11,645,413 | 11,583,011 |
Common stock, shares outstanding | 11,645,413 | 11,583,011 |
Deferred Compensation, Share-based Payments [Member] | ||
Common stock, shares issued | 280,432 | 253,538 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
INTEREST INCOME | |||
Loans | $ 33,058 | $ 31,576 | $ 24,288 |
Federal funds sold and interest-earning deposits in other banks | 257 | 71 | 157 |
Investments | 1,394 | 1,694 | 1,659 |
TOTAL INTEREST INCOME | 34,709 | 33,341 | 26,104 |
INTEREST EXPENSE | |||
Money market, NOW and savings deposits | 390 | 393 | 326 |
Time deposits | 2,664 | 2,598 | 3,793 |
Short-term debt | 127 | 65 | 59 |
Long-term debt | 552 | 486 | 341 |
TOTAL INTEREST EXPENSE | 3,733 | 3,542 | 4,519 |
NET INTEREST INCOME | 30,976 | 29,799 | 21,585 |
PROVISION FOR (RECOVERY OF) LOAN LOSSES | 1,516 | 890 | (194) |
NET INTEREST INCOME AFTER PROVISION FOR (RECOVERY OF) LOAN LOSSES | 29,460 | 28,909 | 21,779 |
NON-INTEREST INCOME | |||
Gain (loss) on the sale of securities | 22 | 332 | (46) |
Service charges on deposit accounts | 966 | 1,056 | 996 |
Other fees and income | 2,234 | 1,904 | 1,725 |
TOTAL NON-INTEREST INCOME | 3,222 | 3,292 | 2,675 |
NON-INTEREST EXPENSE | |||
Personnel | 12,711 | 12,180 | 10,213 |
Occupancy and equipment | 2,304 | 2,232 | 1,726 |
Deposit insurance | 393 | 498 | 404 |
Professional fees | 977 | 1,218 | 1,238 |
Core deposit intangible amortization | 431 | 544 | 347 |
Merger/acquisition related expenses | 0 | 378 | 1,941 |
Information systems | 2,070 | 1,942 | 1,527 |
Foreclosure-related expenses | 199 | 205 | 480 |
Other | 3,196 | 3,033 | 2,784 |
TOTAL NON-INTEREST EXPENSE | 22,281 | 22,230 | 20,660 |
INCOME BEFORE INCOME TAX | 10,401 | 9,971 | 3,794 |
INCOME TAX | 3,647 | 3,418 | 1,437 |
NET INCOME | 6,754 | 6,553 | 2,357 |
DIVIDENDS ON PREFERRED STOCK | 4 | 77 | 38 |
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ 6,750 | $ 6,476 | $ 2,319 |
Basic | $ 0.58 | $ 0.56 | $ 0.26 |
Diluted | $ 0.58 | $ 0.56 | $ 0.26 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | |||
Basic | 11,610,705 | 11,502,800 | 8,870,114 |
Diluted | 11,655,111 | 11,567,811 | 8,974,384 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net income | $ 6,754 | $ 6,553 | $ 2,357 |
Other comprehensive income (loss): | |||
Unrealized gains (losses) on investment securities- available for sale | (185) | (176) | 1,408 |
Tax effect | 67 | 65 | (520) |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | (118) | (111) | 888 |
Reclassification adjustment for (gains) losses included in net income | (22) | (332) | 46 |
Tax effect | 8 | 124 | (17) |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | (14) | (208) | 29 |
Total | (132) | (319) | 917 |
Total comprehensive income | $ 6,622 | $ 6,234 | $ 3,274 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Preferred Stock [Member] | Common Stock [Member] | Additional paid-in Capital [Member] | Retained Earnings [Member] | Deferred Comp Plan [Member] | Common Stock Issued to Deferred Compensation Trust [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance at Dec. 31, 2013 | $ 56,004 | $ 0 | $ 6,922 | $ 42,062 | $ 7,128 | $ 1,976 | $ (1,976) | $ (108) |
Balance (in shares) at Dec. 31, 2013 | 6,921,352 | |||||||
Net income | 2,357 | 0 | $ 0 | 0 | 2,357 | 0 | 0 | 0 |
Other comprehensive loss | 917 | 0 | 0 | 0 | 0 | 0 | 0 | 917 |
Preferred stock dividends paid | (38) | 0 | 0 | 0 | (38) | 0 | 0 | 0 |
Stock option exercise | 218 | 0 | $ 40 | 178 | 0 | 0 | 0 | 0 |
Stock option exercise (in shares) | 40,128 | |||||||
Stock based compensation | 91 | 0 | $ 0 | 91 | 0 | 0 | 0 | 0 |
Director equity incentive plan, net | 0 | 0 | 0 | 0 | 0 | 145 | (145) | 0 |
Stock options acquired in merger | 634 | 0 | 0 | 634 | 0 | 0 | 0 | 0 |
Shares issued for Select merger | 37,502 | $ 7,645 | $ 4,416 | 25,441 | 0 | 0 | 0 | 0 |
Shares issued for Select merger (in shares) | 7,645 | 4,416,500 | ||||||
Balance at Dec. 31, 2014 | 97,685 | $ 7,645 | $ 11,378 | 68,406 | 9,447 | 2,121 | (2,121) | 809 |
Balance (in shares) at Dec. 31, 2014 | 7,645 | 11,377,980 | ||||||
Net income | 6,553 | $ 0 | $ 0 | 0 | 6,553 | 0 | 0 | 0 |
Other comprehensive loss | (319) | 0 | 0 | 0 | 0 | 0 | 0 | (319) |
Preferred stock dividends paid | (77) | 0 | 0 | 0 | (77) | 0 | 0 | 0 |
Stock option exercise | 821 | 0 | $ 205 | 616 | 0 | 0 | 0 | 0 |
Stock option exercise (in shares) | 205,031 | |||||||
Stock based compensation | 39 | 0 | $ 0 | 39 | 0 | 0 | 0 | 0 |
Director equity incentive plan, net | 0 | 0 | 0 | 0 | 0 | 18 | (18) | 0 |
Balance at Dec. 31, 2015 | 104,702 | $ 7,645 | $ 11,583 | 69,061 | 15,923 | 2,139 | (2,139) | 490 |
Balance (in shares) at Dec. 31, 2015 | 7,645 | 11,583,011 | ||||||
Net income | 6,754 | $ 0 | $ 0 | 0 | 6,754 | 0 | 0 | 0 |
Other comprehensive loss | (132) | 0 | 0 | 0 | 0 | 0 | 0 | (132) |
Preferred stock dividends paid | 0 | 0 | 0 | (4) | 0 | 0 | 0 | |
Preferred stock redemption | (7,645) | $ (7,645) | $ 0 | 0 | 0 | 0 | 0 | 0 |
Preferred stock redemption (in shares) | (7,645) | 0 | ||||||
Stock option exercise | $ 527 | $ 0 | $ 62 | 465 | 0 | 0 | 0 | 0 |
Stock option exercise (in shares) | 62,402 | 62,402 | ||||||
Stock based compensation | $ 71 | 0 | $ 0 | 71 | 0 | 0 | 0 | 0 |
Director equity incentive plan, net | 0 | 0 | 0 | 0 | 0 | 201 | (201) | 0 |
Balance at Dec. 31, 2016 | $ 104,273 | $ 0 | $ 11,645 | $ 69,597 | $ 22,673 | $ 2,340 | $ (2,340) | $ 358 |
Balance (in shares) at Dec. 31, 2016 | 11,645,413 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 6,754 | $ 6,553 | $ 2,357 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for (recovery of) loan losses | 1,516 | 890 | (194) |
Depreciation and amortization of premises and equipment | 1,090 | 1,043 | 736 |
Amortization and accretion of investment securities | 741 | 971 | 954 |
Amortization of deferred loan fees and costs | (485) | (346) | (306) |
Amortization of core deposit intangible | 431 | 544 | 347 |
Amortization of acquisition premium on time deposits | (662) | (829) | (460) |
Amortization of acquisition premium on borrowings | (256) | (376) | (188) |
Deferred income taxes | 151 | 970 | 130 |
Stock-based compensation | 71 | 39 | 91 |
Accretion on acquired loans | (1,146) | (1,363) | (732) |
(Gain) loss on the sale of securities | (22) | (332) | 46 |
Increase in cash surrender value of bank owned life insurance | (591) | (626) | (269) |
Loss (gain) on sale of premises and equipment | 20 | 279 | (6) |
Net loss on sale and write-downs of foreclosed real estate | 158 | 139 | 251 |
Change in assets and liabilities: | |||
Net change in accrued interest receivable | (418) | 94 | (34) |
Net change in other assets | 1,328 | (313) | 538 |
Net change in accrued expenses and other liabilities | (199) | (454) | 138 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 8,481 | 6,883 | 3,399 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Redemption (purchase) of FHLB stock | (139) | (588) | 336 |
Purchase of investment securities available for sale | (2,016) | (9,339) | (10,396) |
Maturities of investment securities available for sale | 10,693 | 12,430 | 8,924 |
Mortgage-backed securities pay-downs | 8,223 | 9,210 | 11,003 |
Proceeds from sale of investment securities available for sale | 624 | 8,086 | 504 |
Net change in loans outstanding | (59,711) | (56,073) | 11,877 |
Cash received from acquisition | 0 | 21,229 | 15,406 |
Net change in other non-marketable securities | 2 | 191 | 159 |
Purchase of Bank owned life insurance | 0 | 0 | (10,000) |
Proceeds from sale of foreclosed real estate | 2,062 | 635 | 1,440 |
Proceeds from the sale of premises and equipment | 6 | 1,159 | 18 |
Proceeds from sale of assets held for sale | (781) | ||
Purchases of premises and equipment | 812 | (3,900) | (735) |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (40,225) | (16,960) | 28,536 |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Net change in deposits | 29,162 | 1,904 | (51,303) |
Proceeds from short-term debt | 27,000 | 48,111 | 6,717 |
Proceeds from long-term debt | 0 | 10,000 | 0 |
Repayments of short-term debt | (19,327) | (38,972) | 0 |
Repayments of long-term debt | (5,664) | (6,711) | (1,988) |
Preferred stock dividends paid | (4) | (77) | (38) |
Redemption of preferred stock | (7,645) | 0 | 0 |
Proceeds from stock options exercised | 527 | 821 | 218 |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 24,049 | 15,076 | (46,394) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (7,695) | 4,999 | (14,459) |
CASH AND CASH EQUIVALENTS, BEGINNING | 63,409 | 58,410 | 72,869 |
CASH AND CASH EQUIVALENTS, ENDING | 55,714 | 63,409 | 58,410 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||
Cash paid during the period for: Interest paid | 3,744 | 3,586 | 4,468 |
Cash paid during the period for: Income taxes paid | 2,591 | 2,983 | 213 |
Non-cash transactions: | |||
Change in fair value of investment securities available for sale, net of tax | (132) | (319) | 917 |
Transfer from loans to foreclosed real estate | 1,418 | 590 | 1,197 |
Transfer from premises and equipment to assets held for sale | 781 | 846 | 0 |
Acquisition: | |||
Assets acquired (excluding goodwill) | 0 | 9,975 | 277,083 |
Liabilities assumed | 0 | 31,204 | 245,878 |
Other equity interests acquired | 0 | 0 | 36,517 |
Purchase price | 0 | 21,277 | 38,136 |
Goodwill recorded | $ 0 | $ 0 | $ 6,931 |
ORGANIZATION AND OPERATIONS
ORGANIZATION AND OPERATIONS | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | NOTE A - ORGANIZATION AND OPERATIONS Select Bancorp, Inc. (“Company”) is a bank holding company whose principal business activity consists of ownership of Select Bank & Trust Company (referred to as the “Bank”). All significant intercompany transactions and balances have been eliminated in consolidation. In 2004, the Company formed New Century Statutory Trust I, which issued trust preferred securities to provide additional capital for general corporate purposes, including the current and future expansion of the Company. New Century Statutory Trust I is not a consolidated subsidiary of the Company. Select Bank & Trust Company was originally incorporated as New Century Bank on May 19, 2000 and began banking operations on May 24, 2000. Legacy Select Bank & Trust Company was incorporated on July 30, 2004 and was merged with and into the Bank on July 25, 2014 in connection with the Company’s acquisition of Legacy Select. Select Bank & Trust Company continues as the only banking subsidiary of the Company with its headquarters and operations center located in Dunn, NC. The Bank is engaged in general commercial and retail banking in central and eastern North Carolina and operates under the banking laws of North Carolina and the rules and regulations of the Federal Deposit Insurance Corporation and the North Carolina Commissioner of Banks. The Bank undergoes periodic examinations by those regulatory authorities. Reclassification Certain items for prior years have been reclassified to conform to the current year presentation. Such reclassifications had no effect on net income, total assets or shareholders’ equity as previously reported. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, business combinations and the valuation of other real estate owned. Business combinations are accounted for under the acquisition method of accounting in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805, “Business Combinations .” Assets acquired and liabilities assumed from contingencies must also be recognized at fair value if the fair value can be determined during the measurement period. Results of operations of an acquired business are included in the statement of earnings from the date of acquisition. Acquisition-related costs, including conversion and restructuring charges, are expensed as incurred. The acquired assets and assumed liabilities are recorded at estimated fair values. Management makes significant estimates and exercises significant judgment in accounting for business combinations. Management uses its judgment to assign risk ratings to loans based on credit quality, appraisals and estimated collateral values, and estimated expected cash flows to measure fair values for loans. Real estate acquired in settlement of loans is valued based upon pending sales contracts and appraised values, adjusted for current market conditions. Core deposit intangibles are valued based on a weighted combination of the income and market approach where the income approach converts anticipated economic benefits to a present value and the market approach evaluates the market in which the asset is traded to find an indication of prices from actual transactions. Management uses quoted or current market prices to determine the fair value of investment securities. Fair values of deposits and borrowings are based on current market interest rates and are inclusive of any applicable prepayment penalties. For the purpose of presentation in the statements of cash flows, cash and cash equivalents are defined as those amounts included in the balance sheet captions “Cash and due from banks,” “Interest-earning deposits in other banks,” and “Federal funds sold.” Certificates of deposit are cash instruments that management has the intent and ability to hold for the foreseeable future or until maturity and are reported at cost. Investment securities available for sale are reported at fair value and consist of debt instruments that are not classified as either trading securities or as held to maturity securities. Unrealized holding gains and losses, net of deferred income tax, on available for sale securities are reported as a net amount in accumulated other comprehensive income. Gains and losses on the sale of investment securities available for sale are determined using the specific-identification method. Loans that management has the intent and ability to hold for the foreseeable future or until maturity are reported at their outstanding principal balance adjusted for any charge-offs, the allowance for loan losses, and any deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. Loan origination fees and certain direct origination costs are capitalized and recognized as an adjustment of the yield of the related loan. The accrual of interest on impaired loans is discontinued when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all of the principal and interest amounts contractually due are brought current and future payments are reasonably assured. The acquired loans are segregated between those considered to be performing (“acquired performing”) and those with evidence of credit deterioration based on such factors as past due status, nonaccrual status and credit risk ratings (“purchased credit-impaired loans”). In determining the acquisition date fair value of purchased credit-impaired (“PCI”) loans, and in subsequent accounting, the Company generally aggregates purchased loans into pools of loans with common risk characteristics within the following loan categories: 1-to-4 family residential loans other than junior liens, 1-to-4 family residential junior liens, construction and land development, farm land, commercial real estate (nonowner-occupied), commercial real estate (owner-occupied), commercial and industrial, and all other loan categories. Expected cash flows at the acquisition date in excess of the fair value of loans are referred to as the “accretable yield” and recorded as interest income over the life of the loans using a level yield method if the timing and amount of the future cash flows of the pool is reasonably estimable. Subsequent to the acquisition date, significant increases in cash flows over those expected at the acquisition date are recognized as interest income prospectively. Accordingly, such loans are not classified as nonaccrual and they are considered to be accruing because their interest income relates to the accretable yield recognized under accounting for PCI loans and not to contractual interest payments. The difference between the contractually required payments and the cash flows expected to be collected at acquisition, considering the impact of prepayments, is referred to as the nonaccretable difference. The difference between the fair value of an acquired performing loan pool and the contractual amounts due at the acquisition date (the “fair value discount”) is accreted into income over the estimated life of the pool. The Company’s policy for determining when to discontinue accruing interest on acquired performing loans and the subsequent accounting for such loans is essentially the same as the policy for originated loans described earlier. Loans are deemed uncollectible at the discretion of the Chief Credit Officer, based on a variety of credit, collateral, documentation and other issues. In the case where a loan is unsecured and in default it is fully charged off. Loans are placed on non-accrual when it has been determined that all contractual principal and interest will not be received. Any payments received on these loans are applied to principal first and then to interest only after all principal has been collected. Impaired loans include all loans in non-accrual status, all troubled debt restructures, all substandard loans that are deemed to be collateral dependent, and other loans that management determines require impairment. In the case of an impaired loan that is still on accrual basis, payments are applied to both principal and interest. The provision for loan losses is based upon management’s estimate of the amount needed to maintain the allowance for loan losses at an adequate level in light of the risk inherent in the loan portfolio. In making the evaluation of the adequacy of the allowance for loan losses, management gives consideration to current economic conditions, statutory examinations of the loan portfolio by regulatory agencies, delinquency information and management’s internal review of the loan portfolio. Loans are considered impaired when it is probable that all amounts due will not be collected in accordance with the contractual terms of the loan agreement. The measurement of impaired loans is generally based on the present value of expected future cash flows discounted at the historical effective interest rate, or upon the fair value of the collateral if the loan is collateral-dependent. If the recorded investment in the loan exceeds the measure of fair value, a valuation allowance is established as a component of the allowance for loan losses. Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case, interest is recognized on a cash basis. Impaired loans, or portions thereof, are charged off when deemed uncollectible. While management uses the best information available to make evaluations, future adjustments to the allowance may be necessary if conditions differ substantially from the assumptions used in making the evaluations. In addition, regulatory examiners may require the Company to recognize adjustments to the allowance for loan losses based on their judgments about information available to them at the time of their examination. Decreases in expected cash flows of PCI loans after the acquisition date are recognized by recording an allowance for credit loss. For any significant increases in cash flows expected to be collected, the Company first adjusts any prior recorded allowance for loan and lease losses through a reversal of previously recognized allowance through provision expense, and then increases the amount of accretable yield to be recognized on a prospective basis over the pool’s remaining life. Management analyzes these acquired loan pools using various assessments of risk to determine and calculate an expected loss. The expected loss is derived using an estimate of a loss given default based upon the collateral type and/or specific review by loan officers. Trends are reviewed in terms of traditional credit metrics such as accrual status, past due status, and weighted average risk grade of the loans within each of the accounting pools. In addition, the relationship between the change in the unpaid principal balance and change in the fair value mark is assessed to correlate the directional consistency of the expected loss for each pool. As a requirement for membership, the Bank invests in stock of the Federal Home Loan Bank of Atlanta (“FHLB”). This investment was carried at cost at December 31, 2016 and 2015. The Company continually monitors the financial strength of the FHLB and evaluates the investment for potential impairment. There can be no assurance that the impact of recent or future legislation on the Federal Home Loan Banks will not cause a decrease in the value of the Bank’s investment in FHLB stock. Other non-marketable securities are equity instruments that are reported at cost. Real estate acquired through, or in lieu of, loan foreclosure is recorded at fair value, less the estimated cost to sell, at the date of foreclosure. After foreclosure, management periodically performs valuations of the property and adjusts the value down when the carrying value of the property exceeds the estimated net realizable value. Revenue and expenses from operations and changes in the valuation allowance are included in foreclosure-related expense. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is calculated on the straight-line method over the estimated useful lives of the assets. Estimated useful lives are 40 3 10 Repairs and maintenance costs are charged to operations as incurred and additions and improvements to premises and equipment are capitalized. Upon sale or retirement, the cost and related accumulated depreciation are removed from the accounts and any gains or losses are reflected in current operations. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the tax basis of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax assets are also recognized for operating loss carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which the temporary differences are expected to be recovered or settled. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that the tax benefits will not be realized. Bank Owned Life Insurance ("BOLI") is carried at its cash surrender value on the balance sheet and is classified as a non-interest-earning asset. Death benefit proceeds received in excess of the policy's cash surrender value are recognized to income. Returns on the BOLI assets are added to the carrying value and included as non-interest income in the consolidated statement of operations. Any receipt of benefit proceeds is recorded as a reduction to the carrying value of the BOLI asset. At December 31, 2016 and 2015, the Company held no loans against its BOLI cash surrender values. Goodwill represents the cost in excess of the fair value of net assets acquired (including identifiable intangibles) in transactions accounted for as business combinations. Goodwill has an indefinite useful life and is evaluated for impairment annually, or more frequently if events and circumstances indicate that the asset might be impaired. An impairment loss is recognized to the extent that the carrying amount exceeds the asset’s fair value. The goodwill impairment analysis is a two-step test. The first, used to identify potential impairment, involves comparing each reporting unit’s estimated fair value to its carrying value, including goodwill. If the estimated fair value of a reporting unit exceeds its carrying value, goodwill is considered not to be impaired. In September 2011, the FASB issued ASU 2011-08, which gives entities the option of first performing a qualitative assessment to test goodwill for impairment on a reporting-unit-by-reporting-unit basis. If, after performing the qualitative assessment, an entity concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the entity would perform the two-step goodwill impairment test described in the impairment test described above. However, if, after applying the qualitative assessment, the entity concludes that it is not more likely than not that the fair value is less than the carrying amount, the two-step goodwill impairment test is not required. The Company performed the qualitative assessment as outlined in ASU 2011-08 in assessing the carrying value of goodwill related to its acquisitions as of October 5, 2016, its annual test date, and determined that it was unlikely that the fair value was less than the carrying amount and that no further testing or impairment charge was necessary. Should the Company’s future earnings and cash flows decline and/or discount rates increase, an impairment charge to goodwill and other intangible assets may be required. There have been no events subsequent to the October 5, 2016 evaluation that caused the Company to perform an interim review of the carrying value of goodwill. The Company considers its core deposits to be intangible assets with finite lives. Core deposit intangibles are being amortized using the effective interest method. The Company has certain stock-based employee compensation plans, described more fully in Note Q The Company reports as comprehensive income all changes in shareholders' equity during the year from sources other than shareholders. Other comprehensive income refers to all components (revenues, expenses, gains, and losses) of comprehensive income that are excluded from net income. The Company's only component of other comprehensive income is unrealized gains and losses on investment securities available for sale. The Company follows the provisions of ASC 280, Segment Reporting, Basic earnings per share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to outstanding stock options. 2016 2015 2014 Weighted average number of common shares used in computing basic net income per share 11,610,705 11,502,800 8,870,114 Effect of dilutive stock options 44,406 65,011 104,270 Weighted average number of common shares and dilutive potential common shares used in computing diluted net income per share 11,655,111 11,567,811 8,974,384 At December 31, 2016, 2015 and 2014, there were 88,000 97,800 75,783 The following summarizes recent accounting pronouncements and their expected impact on the Company: In September 2015, the FASB issued Accounting Standard Update 2015-16. Simplifying the Accounting for Measurement Period Adjustments In June 2015, the FASB issued ASU 2015-10, Technical Corrections and Improvements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients In August 2015, the FASB deferred the effective date of ASU 2014-09, Revenue from Contracts with Customers. In April 2016, the FASB amended the Revenue from Contracts with Customers topic of the Accounting Standards Codification to clarify guidance related to identifying performance obligations and accounting for licenses of intellectual property. The amendments will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-based Payment Accounting, . In January 2015, the FASB issued ASU 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis In August 2015, the FASB issued ASU 2015-15, InterestImputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements In January 2016, the FASB issued ASU 2016-01 amending the Financial Instruments topic of the Accounting Standards Codification to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company will apply the guidance by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values will be applied prospectively to equity investments that exist as of the date of adoption of the amendments. The Company does not expect these amendments to have a material effect on its financial statements. In February 2016, the FASB issued ASU 2016-02, Leases In June 2016, the FASB issued ASU 2016-13, Financial Instruments Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In August 2016, the FASB amended the Statement of Cash Flows topic of the Accounting Standards Codification to clarify how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments will be effective for the Company for fiscal years beginning after December 15, 2017 including interim periods within those fiscal years. The Company does not expect these amendments to have a material effect on its financial statements. From time to time, the FASB issues exposure drafts for proposed statements of financial accounting standards. Such exposure drafts are subject to comment from the public, to revisions by the FASB and to final issuance by the FASB as statements of financial accounting standards. Management considers the effect of the proposed statements on the consolidated financial statements of the Company and monitors the status of changes to and proposed effective dates of exposure drafts. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | Note C Business Combinations On December 11, 2015 the Company acquired two branches from Yadkin Bank. The assets and liabilities of these branches, as of the effective date of the acquisition, are recorded at their respective fair values. For the acquisition, the estimated fair values of assets acquired was approximately $ 10.0 31.2 21.2 On September 30, 2013, the Company executed a merger agreement with Legacy Select Bancorp, Inc. (“Select”), a bank holding company headquartered in Greenville, North Carolina, whose wholly-owned subsidiary, Select Bank & Trust Company, was a state-chartered commercial bank with approximately $ 277.1 th On July 25, 2014, New Century acquired Legacy Select, and its wholly-owned subsidiary, Select Bank & Trust Company, and assumed the name, Select Bancorp, Inc. Under the acquisition method, the assets and liabilities of Legacy Select, as of the effective date of the acquisition, are recorded at their respective fair values. For the acquisition of Legacy Select, estimated fair values of assets acquired and liabilities assumed are based on the information that is available, and the Company believes this information provides a reasonable basis for determining fair values. Under the terms of the agreement, shareholders of Legacy Select common stock received 1.8264 31.2 2,418,347 6.76 12.35 Each share of Legacy Select’s issued and outstanding preferred stock was exchanged for one share of newly issued New Century preferred stock having terms substantially identical to Legacy Select’s preferred stock. As of December 31, 2015, all of the issued and outstanding shares of Legacy Select’s preferred stock were held by the Secretary of the United States Treasury and were issued in connection with Legacy Select’s participation in the Small Business Lending Fund. All outstanding shares of Legacy Select’s preferred stock were redeemed and cancelled in January 2016. The following table provides the carrying value of acquired assets and assumed liabilities, as recorded by the Company, the fair value adjustments calculated at the time of the merger and the resulting fair value recorded by the Company. July 25, 2014 As recorded by Fair Value As recorded by Legacy Select adjustments the Company (Dollars in thousands) Assets Cash and cash equivalents $ 15,406 $ - $ 15,406 Investment securities 28,264 (284) 27,980 Loans 223,131 (5,541) 217,590 Less: allowance for loan losses (3,389) 3,389 - Premises and equipment 6,380 332 6,712 Accrued interest receivable 864 (132) 732 Other real estate owned 71 - 71 Bank owned life insurance 2,234 - 2,234 Goodwill 1,488 (1,488) - Core deposit intangible 234 1,556 1,790 Other assets 2,507 2,061 4,568 Total assets acquired $ 277,190 $ (107) $ 277,083 Liabilities Deposits: Noninterest-bearing $ 42,507 $ - $ 42,507 Interest-bearing 177,525 2,175 179,700 Total deposits 220,032 2,175 222,207 Borrowings 22,198 908 23,106 Other liabilities 565 - 565 Total liabilities assumed $ 242,795 $ 3,083 $ 245,878 Fair value of net assets assumed 31,205 Value of preferred shares issued to Legacy Select shareholders 7,645 Value of common shares issued to Legacy Select shareholders 29,857 Additional consideration ensuing from stock options issued to Legacy Select shareholders 634 Goodwill recorded for Legacy Select $ 6,931 Goodwill recorded for Legacy Select represents future revenues to be derived from the existing customer base, including efficiencies that will result from combining operations. On July 25, 2014, 202,842 370,278 76,994 3.56 399,000 3,652 305,775 In determining the acquisition date fair value of purchased credit-impaired (“PCI”) loans, and in subsequent accounting, the Company generally aggregates loans into pools of loans with common risk characteristics. Expected cash flows at the acquisition date in excess of the fair value of loans are referred to as the “accretable yield” and recorded as interest income prospectively. PCI loans acquired totaled $28.6 million at estimated fair value and acquired performing loans totaling $ 189.0 (Dollars in thousands) July 25, 2014 Contractually required payments $ 34,329 Nonaccretable difference 1,402 Cash flows expected to be collected 32,927 Accretable yield 4,360 Fair value at acquisition date $ 28,567 Merger-related expense in 2014 totaled $ 1.9 |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | NOTE D - INVESTMENT SECURITIES December 31, 2016 Gross Gross Amortized unrealized unrealized Fair cost gains losses value (dollars in thousands) Securities available for sale: U.S. government agencies GSE’s $ 14,086 $ 98 $ (25) $ 14,159 Mortgage-backed securities GSE’s 32,082 382 (101) 32,363 Municipal bonds 15,527 209 (1) 15,735 $ 61,695 $ 689 $ (127) $ 62,257 As of December 31, 2016, accumulated other comprehensive income included net unrealized gains totaling $ 562,000 204,000 December 31, 2015 Gross Gross Amortized unrealized unrealized Fair cost gains losses value (dollars in thousands) Securities available for sale: U.S. government agencies GSE’s $ 21,321 $ 101 $ (196) $ 21,226 Mortgage-backed securities GSE’s 39,123 475 (62) 39,536 Municipal bonds 19,484 465 (2) 19,947 $ 79,928 $ 1,041 $ (260) $ 80,709 As of December 31, 2015, accumulated other comprehensive income included net unrealized gains totaling $ 781,000 291,000 Securities with a carrying value of $ 34.3 45.2 2016 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized value losses value losses value losses (dollars in thousands) Securities available for sale: U.S. government agencies GSE’s $ 2,748 $ (13) $ 1,651 $ (12) $ 4,399 $ (25) Mortgage-backed securities- GSE’s 8,778 (101) - - 8,778 (101) Municipal bonds 110 (1) - - 110 (1) Total temporarily impaired securities $ 11,636 $ (115) $ 1,651 $ (12) $ 13,287 $ (127) At December 31, 2016, the Company had two AFS securities with an unrealized loss for twelve or more consecutive months. The two U.S. government agency GSE’s had unrealized losses for more than twelve months totaling $12,000 at December 31, 2016. Two U.S. government agency GSE’s, one municipal and eight mortgage-backed GSE’s had unrealized losses for less than twelve months totaling $115,000 at December 31, 2016. 2015 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized value losses value losses value losses (dollars in thousands) Securities available for sale: U.S. government agencies GSE’s $ 7,039 $ (70) $ 7,615 $ (126) $ 14,654 $ (196) Mortgage-backed securities- GSE’s 7,916 (62) - - 7,916 (62) Municipal bonds 111 (2) - - 111 (2) Total temporarily impaired securities $ 15,066 $ (134) $ 7,615 $ (126) $ 22,681 $ (260) At December 31, 2015, the Company had five AFS securities with an unrealized loss for twelve or more consecutive months. Five U.S. government agency GSE’s had unrealized losses for more than twelve months totaling $126,000 at December 31, 2015. Six U.S. government agency GSE’s, one municipal and seven mortgage-backed GSE’s had unrealized losses for less than twelve months totaling $134,000 at December 31, 2015 Since none of the unrealized losses relate to the liquidity of the securities or the issuer’s ability to honor redemption obligations and the Company has the intent and ability to hold these securities to recovery, no other than temporary impairments were identified for these investments having unrealized losses for the periods ended December 31, 2016 and December 31, 2015. In 2016 the Company realized gains of $ 22,000 624,000 332,000 8.1 46,000 504,000 Amortized Fair Cost Value (dollars in thousands) Securities available for sale: U.S. government agencies GSE’s Due within one year $ 2,011 $ 2,013 Due after one but within five years 5,999 6,016 Due after five but within ten years 4,174 4,226 Due after ten years 1,902 1,904 14,086 14,159 Mortgage-backed securities GSE’s Due within one year - - Due after one but within five years 29,291 29,564 Due after five but within ten years 2,791 2,799 Due after ten years - - 32,082 32,363 Municipal bonds Due within one year 1,724 1,734 Due after one but within five years 2,325 2,349 Due after five but within ten years 3,730 3,767 Due after ten years 7,748 7,885 15,527 15,735 Total securities available for sale Due within one year 3,735 3,747 Due after one but within five years 37,615 37,929 Due after five but within ten years 10,695 10,792 Due after ten years 9,650 9,789 $ 61,695 $ 62,257 For purposes of the maturity table, mortgage-backed securities, which are not due at a single maturity date, have been allocated over maturity groupings based on the weighted-average contractual maturities of underlying collateral. The mortgage-backed securities may mature earlier than their weighted-average contractual maturities because of principal prepayments. |
LOANS
LOANS | 12 Months Ended |
Dec. 31, 2016 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE E - LOANS The following is a summary of loans at December 31, 2016 and 2015: 2016 2015 Percent Percent Amount of total Amount of total (dollars in thousands) Real estate loans: 1-to-4 family residential $ 97,978 14.47 % $ 87,955 14.25 % Commercial real estate 281,723 41.60 % 259,259 41.99 % Multi-family residential 56,119 8.29 % 40,738 6.60 % Construction 100,911 14.90 % 107,688 17.44 % Home equity lines of credit (“HELOC”) 41,158 6.08 % 42,002 6.80 % Total real estate loans 577,889 85.34 % 537,642 87.08 % Other loans: Commercial and industrial 90,678 13.39 % 73,491 11.90 % Loans to individuals 9,756 1.44 % 7,207 1.17 % Overdrafts 71 0.01 % 48 0.01 % Total other loans 100,505 14.84 % 80,746 13.08 % Gross loans 678,394 618,388 Less deferred loan origination fees, net (1,199) (.18) % (990) (.16) % Total loans 677,195 100.00 % 617,398 100.00 % Allowance for loan losses (8,411) (7,021) Total loans, net $ 668,784 $ 610,377 Loans are primarily made in central and eastern North Carolina. Real estate loans can be affected by the condition of the local real estate market and can be affected by the local economic conditions. At December 31, 2016, the Company had pre-approved but unused lines and letters of credit totaling $ 143.1 A description of the various loan products provided by the Bank is presented below. Residential 1-to-4 Family Loans Residential 1-to-4 family loans are mortgage loans that typically convert from construction loans into permanent financing and are secured by properties within the Bank’s market areas. Commercial Real Estate Loans Commercial real estate loans are underwritten based on the borrower’s ability to generate adequate cash flow to repay the subject debt within reasonable terms. Commercial real estate loans typically include both owner and non-owner occupied properties with higher principal loan amounts and the repayment of these loans is generally dependent on the successful management of the property. Commercial real estate loans are sensitive to market and general economic conditions. Repayment analysis must be performed and consists of an identified primary/cash flow source of repayment and a secondary/liquidation source of repayment. The primary source of repayment is cash flow from income generated from rental or lease of the property. However, the cash flow can be supplemented with the borrower's and guarantor's global cash flow position. Other credit issues such as the business fundamentals and financial strength of the borrower/guarantor can be considered in determining adequacy of repayment ability. The secondary source of repayment is liquidation of the collateral, supplemented by liquidation cushion provided by the financial assets of the borrower/guarantor. Management monitors and evaluates commercial real estate loans based on collateral, market area, and risk grade. Multi-family Residential Loans Multi-family residential loans are typically nonfarm properties with 5 or more dwelling units in structures which include apartment buildings used primarily to accommodate households on a more or less permanent basis. Successful performance of these types of loans is primarily dependent on occupancy rates, rental rates, and property management. Construction Loans Construction loans are non-revolving extensions of credit secured by real property of which the proceeds are used to acquire and develop land and to construct commercial or residential buildings. The primary source of repayment for these types of loans is the sale of the improved property or permanent financing in which case the property is expected to generate the cash flow necessary for repayment on a permanent loan basis. Property cash flow may be supplemented with financial support from the borrowers/guarantors. Proper underwriting of a construction loan consists of the initial process of obtaining, analyzing, and approving various aspects of information pertaining to: the feasibility, marketability, and valuation of the project. Also, much consideration needs to be given to the cost of the project and sources of funds needed to complete construction as well as identifying any sources of equity funding. Construction loans are traditionally considered to be higher risk loans involving technical and legal requirements inherently different from other types of loans; however with thorough credit underwriting, proper loan structure, and diligent loan servicing, these risks can be mitigated. Home Equity Lines of Credit Home equity lines of credit are consumer-purpose revolving extensions of credit which are secured by first or second liens on owner-occupied residential real estate. Appropriate risk management and compliance practices are exercised to ensure that loan-to-value, lien perfection, and compliance risks are addressed and managed within the Bank’s established guidelines. The degree of utilization of revolving commitments within this loan segment is reviewed periodically to identify changes in the behavior of this borrowing group. Commercial and Industrial Loans Commercial and industrial loans are underwritten after evaluating and understanding the borrower’s ability to generate positive cash flow, operate profitably and prudently expand its business. Underwriting standards are designed to promote relationships to include a full range of loan, deposit, and cash management services. Commercial and industrial loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower and the guarantors. The cash flows of the borrower, however, may not be as expected and the collateral securing these loans may fluctuate in value. In the case of loans secured by accounts receivable, the availability of funds for repayment can be impacted by the borrower’s ability to collect amounts due from its customers. Loans to Individuals Consumer loans are approved using Bank policies and procedures established to evaluate each credit request. All lending decisions and credit risks are clearly documented. Several factors are considered in making these decisions such as credit score, adjusted net worth, liquidity, debt ratio, disposable income, credit history, and loan-to-value of the collateral. This process, combined with the relatively smaller loan amounts, spreads the risk among many individual borrowers. Overdrafts Overdrafts on customer accounts are classified as loans for reporting purposes. Related Parties The Bank has loan transactions with its directors and executive officers in the regular course of business. Such loans were made in the ordinary course of business and on substantially the same terms and collateral as those for comparable transactions prevailing at the time and did not involve more than the normal risk of collectability or present other unfavorable features. The following table represents loan transactions for directors and executive officers who held that position as of December 31, 2016 and 2015. A summary of related party loan transactions, is as follows: 2016 2015 (in thousands) Balance at January 1 $ 7,127 $ 3,397 Exposure of directors/executive officers added - Borrowings 4,143 7,115 Directors/executive officers resigned or retired from board - (66) Loan repayments (736) (3,319) Balance at December 31 $ 10,534 $ 7,127 At December 31, 2016, there was $ 3.1 Non-Accrual and Past Due Loans The following tables present as of December 31, 2016 and 2015 an age analysis of past due loans, segregated by class of loans: 30+ Non- Total Days Accrual Past Total 2016 Past Due Loans Due Current Loans (dollars in thousands) Total Loans Commercial and industrial $ 1,459 $ 73 $ 1,532 $ 89,146 $ 90,678 Construction 221 151 372 100,539 100,911 Multi-family residential 46 346 392 55,727 56,119 Commercial real estate 589 3,807 4,396 277,327 281,723 Loans to individuals & overdrafts 23 46 69 9,758 9,827 1-to-4 family residential 631 602 1,233 96,745 97,978 HELOC 24 780 804 40,354 41,158 Deferred loan (fees) cost, net - - - - (1,199) $ 2,993 $ 5,805 $ 8,798 $ 669,596 $ 677,195 Loans- PCI Commercial and industrial $ 29 $ 73 $ 102 $ 117 $ 219 Construction - 83 83 849 932 Multi-family residential - - - 669 669 Commercial real estate 404 - 404 7,770 8,174 Loans to individuals & overdrafts - - - 100 100 1-to-4 family residential 122 373 495 6,934 7,429 HELOC - - - 197 197 $ 555 $ 529 $ 1,084 $ 16,636 $ 17,720 Loans- excluding PCI Commercial and industrial $ 1,430 $ - $ 1,430 $ 89,029 $ 90,459 Construction 221 68 289 99,690 99,979 Multi-family residential 46 346 392 55,058 55,450 Commercial real estate 185 3,807 3,992 269,557 273,549 Loans to individuals & overdrafts 23 46 69 9,658 9,727 1-to-4 family residential 509 229 738 89,811 90,549 HELOC 24 780 804 40,157 40,961 Deferred loan (fees) cost, net - - - - (1,199) $ 2,438 $ 5,276 $ 7,714 $ 652,960 $ 659,475 Non-Accrual and Past Due Loans 30+ Non- Total Days Accrual Past Total 2015 Past Due Loans Due Current Loans (dollars in thousands) Total Loans Commercial and industrial $ 455 $ 13 $ 468 $ 73,023 $ 73,491 Construction - 523 523 107,165 107,688 Multi-family residential 44 431 475 40,263 40,738 Commercial real estate 1,214 3,711 4,925 254,334 259,259 Loans to individuals & overdrafts 14 4 18 7,237 7,255 1-to-4 family residential 650 1,594 2,244 85,711 87,955 HELOC 124 359 483 41,519 42,002 Deferred loan (fees) cost, net - - - - (990) $ 2,501 $ 6,635 $ 9,136 $ 609,252 $ 617,398 Loans- PCI Commercial and industrial $ - $ - $ - $ 580 $ 580 Construction - - - 1,070 1,070 Multi-family residential - - - 689 689 Commercial real estate 424 - 424 9,955 10,379 Loans to individuals & overdrafts - - - 115 115 1-to-4 family residential 133 142 275 7,808 8,083 HELOC - - - 192 192 $ 557 $ 142 $ 699 $ 20,409 $ 21,108 Loans- excluding PCI Commercial and industrial $ 455 $ 13 $ 468 $ 72,443 $ 72,911 Construction - 523 523 106,095 106,618 Multi-family residential 44 431 475 39,574 40,049 Commercial real estate 790 3,711 4,501 244,379 248,880 Loans to individuals & overdrafts 14 4 18 7,122 7,140 1-to-4 family residential 517 1,452 1,969 77,903 79,872 HELOC 124 359 483 41,327 41,810 Deferred loan (fees) cost, net - - - - (990) $ 1,944 $ 6,493 $ 8,437 $ 588,843 $ 596,290 There were three loans in the aggregate amount of $ 529,000 142,000 Loans are placed on non-accrual status when it has been determined that all contractual principal and interest will not be received. Any payments received on these loans are applied to principal first and then to interest only after all principal has been collected. Impaired loans include all loans in non-accrual status, all troubled debt restructures, all substandard loans that are deemed to be collateral dependent, and other loans that management determines require reserves. In the case of an impaired loan that is still on accrual basis, payments are applied to both principal and interest. Impaired Loans December 31, 2016 Contractual Year to Date Unpaid Related Average Interest Income Recorded Principal Allowance Recorded Recognized on Investment Balance for Loan Losses Investment Impaired Loans 2016: (dollars in thousands) With no related allowance recorded: Commercial and industrial $ 46 $ 46 $ - $ 23 $ 4 Construction 231 318 - 423 9 Commercial real estate 4,364 5,983 - 4,685 205 Loans to individuals & overdrafts 1,139 1,144 - 622 69 Multi-family residential 346 365 - 387 19 HELOC 1,041 1,378 - 870 51 1-to-4 family residential 1,000 1,278 - 1,530 83 Subtotal: 8,167 10,512 - 8,540 440 With an allowance recorded: Commercial and industrial - - - - - Construction - - - - - Commercial real estate 2,496 2,905 80 1,872 40 Loans to individuals & overdrafts 1 1 1 9 - Multi-family Residential - - - - - HELOC 34 35 19 17 1 1-to-4 family residential 296 296 17 293 14 Subtotal: 2,827 3,237 117 2,191 55 Totals: Commercial 7,483 9,617 80 7,390 277 Consumer 1,140 1,145 1 631 69 Residential 2,371 2,987 36 2,710 149 Grand Total: $ 10,994 $ 13,749 $ 117 $ 10,731 $ 495 Impaired loans at December 31, 2016 were approximately $ 11.0 5.8 5.2 2.8 December 31, 2015 Contractual Year to Date Unpaid Related Average Interest Income Recorded Principal Allowance Recorded Recognized on Investment Balance for Loan Losses Investment Impaired Loans 2015: (dollars in thousands) With no related allowance recorded: Commercial and industrial $ 105 $ 106 $ - $ 291 $ 11 Construction 615 764 - 957 18 Commercial real estate 5,006 7,229 - 3,830 246 Loans to individuals & overdrafts - - - - - Multi-family residential - - - - - HELOC 699 868 - 668 43 1-to-4 family residential 2,061 2,666 - 2,181 89 Subtotal: 8,486 11,633 - 7,927 407 With an allowance recorded: Commercial and industrial 13 13 2 139 1 Construction - - - 83 - Commercial real estate 1,248 1,314 73 3,063 46 Loans to individuals & overdrafts 4 4 4 2 - Multi-family Residential - - - - - HELOC - - - 142 - 1-to-4 family residential 290 290 15 370 18 Subtotal: 1,555 1,621 94 3,799 65 Totals: Commercial 6,987 9,426 75 8,363 322 Consumer 4 4 4 2 - Residential 3,050 3,824 15 3,361 150 Grand Total: $ 10,041 $ 13,254 $ 94 $ 11,726 $ 472 Impaired loans at December 31, 2015 were approximately $ 10.0 6.6 3.1 1.6 8.5 Troubled Debt Restructurings Twelve Months Ended December 31, 2016 Pre-Modification Post-Modification Number Outstanding Outstanding of Recorded Recorded loans Investments Investments (dollars in thousands) Extended payment terms: Commercial and industrial 6 1,326 1,194 Construction 1 139 66 Commercial real estate 1 923 911 Loans to individuals and overdrafts - - - 1-to-4 family residential 2 126 126 HELOC - - - Total 10 $ 2,514 $ 2,297 As noted in the tables above, there were ten loans that were considered TDRs during the year ended December 31, 2016, for reasons due to extended terms. These loans were renewed at terms that vary from those that the Company would enter into for new loans of this type. Twelve Months Ended December 31, 2015 Pre-Modification Post-Modification Number Outstanding Outstanding of Recorded Recorded loans Investments Investments (dollars in thousands) Below market interest rate: Commercial and industrial - $ - $ - Construction - - - Commercial real estate - - - Loans to individuals and overdrafts - - - 1-to-4 family residential 1 51 3 HELOC - - - Total 1 51 3 Extended payment terms: Commercial and industrial - - - Construction - - - Commercial real estate - - - Multi-family residential 1 431 431 Loans to individuals and overdrafts - - - 1-to-4 family residential - - - HELOC - - - Total 1 431 431 Total 2 $ 482 $ 434 As noted in the tables above, there were two loans that were considered TDRs during the year ended December 31, 2015, for reasons due to below market interest rates or extended terms. These loans were renewed at terms that vary from those that the Company would enter into for new loans of this type. Twelve months ended December 31, 2016 Number Recorded of loans investment (dollars in thousands) Extended payment terms: Commercial and industrial 4 660 Construction 1 66 Commercial real estate - Loans to individuals and overdrafts - 1-to-4 family residential 1 48 Multi-family residential - - HELOC - - Total 6 $ 774 Twelve months ended December 31, 2015 Number Recorded of loans investment (dollars in thousands) Extended payment terms: Commercial and industrial - - Construction - - Commercial real estate - Loans to individuals and overdrafts - - Multi-family residential 1 431 1-to-4 family residential - - HELOC - Total 1 431 Total 1 $ 431 At December 31, 2016, the Company had thirty-seven loans with an aggregate balance of $ 6.0 3.6 2.4 Credit Quality Indicators As part of the on-going monitoring of the credit quality of the loan portfolio, management utilizes a risk grading matrix to assign a risk grade to each of the Company’s loans. All non-consumer loans are graded on a scale of 1 to 9. A description of the general characteristics of these nine different risk grades is as follows: · Risk Grade 1 (Superior) - Credits in this category are virtually risk-free and are well-collateralized by cash-equivalent instruments. The repayment program is well-defined and achievable. Repayment sources are numerous. No material documentation deficiencies or exceptions exist. · Risk Grade 2 (Very Good) - This grade is reserved for loans secured by readily marketable collateral, or loans within guidelines to borrowers with liquid financial statements. A liquid financial statement is a financial statement with substantial liquid assets relative to debts. These loans have excellent sources of repayment, with no significant identifiable risk of collection, and conform in all respects to Bank policy, guidelines, underwriting standards, and Federal and State regulations (no exceptions of any kind) . · Risk Grade 3 (Good) - These loans have excellent sources of repayment, with no significant identifiable risk of collection. Generally, loans assigned this risk grade will demonstrate the following characteristics: o Conformity in all respects with Bank policy, guidelines, underwriting standards, and Federal and State regulations (no exceptions of any kind). o Documented historical cash flow that meets or exceeds required minimum Bank guidelines, or that can be supplemented with verifiable cash flow from other sources. o Adequate secondary sources to liquidate the debt, including combinations of liquidity, liquidation of collateral, or liquidation value to the net worth of the borrower or guarantor. · Risk Grade 4 (Acceptable) - This grade is given to acceptable loans. These loans have adequate sources of repayment, with little identifiable risk of collection. Loans assigned this risk grade will demonstrate the following characteristics: o General conformity to the Bank's policy requirements, product guidelines and underwriting standards, with limited exceptions. Any exceptions that are identified during the underwriting and approval process have been adequately mitigated by other factors. o Documented historical cash flow that meets or exceeds required minimum Bank guidelines, or that can be supplemented with verifiable cash flow from other sources. o Adequate secondary sources to liquidate the debt, including combinations of liquidity, liquidation of collateral, or liquidation value to the net worth of the borrower or guarantor. · Risk Grade 5 (Acceptable With Care) - This grade is given to acceptable loans that show signs of weakness in either adequate sources of repayment or collateral, but have demonstrated mitigating factors that minimize the risk of delinquency or loss. Loans assigned this grade may demonstrate some or all of the following characteristics: o Additional exceptions to the Bank's policy requirements, product guidelines or underwriting standards that present a higher degree of risk to the Bank. Although the combination and/or severity of identified exceptions is greater, all exceptions have been properly mitigated by other factors. o Unproven, insufficient or marginal primary sources of repayment that appear sufficient to service the debt at this time. Repayment weaknesses may be due to minor operational issues, financial trends, or reliance on projected (not historic) performance. o Marginal or unproven secondary sources to liquidate the debt, including combinations of liquidation of collateral and liquidation value to the net worth of the borrower or guarantor. · Risk Grade 6 (Watch List or Special Mention) Loans in this category can have the following characteristics: o Loans with underwriting guideline tolerances and/or exceptions and with no mitigating factors. o Extending loans that are currently performing satisfactorily but with potential weaknesses that may, if not corrected, weaken the asset or inadequately protect the Bank's position at some future date. Potential weaknesses are the result of deviations from prudent lending practices. o Loans where adverse economic conditions that develop subsequent to the loan origination that do not jeopardize liquidation of the debt but do substantially increase the level of risk may also warrant this rating. · Risk Grade 7 (Substandard) - A Substandard loan is inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified as Substandard must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt; they are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. · Risk Grade 8 (Doubtful) - Loans classified Doubtful have all the weaknesses inherent in loans classified Substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable. However, these loans are not yet rated as loss because certain events may occur which would salvage the debt. · Risk Grade 9 (Loss) - Loans classified as Loss are considered uncollectable and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off the loan even though partial recovery may be affected in the future. Consumer loans are graded on a scale of 1 to 9. A description of the general characteristics of the 9 risk grades is as follows: · Risk Grades 1 5 (Pass) The loans in this category range from loans secured by cash with no risk of principal deterioration (Risk Grade 1) to loans that show signs of weakness in either adequate sources of repayment or collateral but have demonstrated mitigating factors that minimize the risk of delinquency or loss (Risk Grade 5). · Risk Grade 6 (Watch List or Special Mention) - Watch list or Special Mention loans include the following characteristics: o Loans within guideline tolerances or with exceptions of any kind that have not been mitigated by other economic or credit factors. o Extending loans that are currently performing satisfactorily but with potential weaknesses that may, if not corrected, weaken the asset or inadequately protect the Bank's position at some future date. Potential weaknesses are the result of deviations from prudent lending practices. o Loans where adverse economic conditions that develop subsequent to the loan origination that don't jeopardize liquidation of the debt but do substantially increase the level of risk may also warrant this rating. · Risk Grade 7 (Substandard) - A Substandard loan is inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified as Substandard must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt; they are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. · Risk Grade 8 (Doubtful) - Loans classified Doubtful have all the weaknesses inherent in loans classified Substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable. However, these loans are not yet rated as loss because certain events may occur which would salvage the debt. · Risk Grade 9 (Loss) - Loans classified Loss are considered uncollectable and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this worthless loan even though partial recovery may be affected in the future. Total Loans: December 31, 2016 Commercial Credit Exposure By Commercial Commercial Internally and real Multi-family Assigned Grade industrial Construction estate residential (dollars in thousands) Superior $ 435 $ - $ - $ - Very good 326 245 460 - Good 13,632 4,506 36,501 12,139 Acceptable 35,720 12,922 152,608 29,873 Acceptable with care 37,351 82,771 81,231 13,467 Special mention 2,905 173 4,868 - Substandard 309 294 6,055 640 Doubtful - - - - Loss - - - - $ 90,678 $ 100,911 $ 281,723 $ 56,119 Consumer Credit Exposure By Internally 1-to-4 family Assigned Grade residential HELOC Pass $ 92,115 $ 39,554 Special mention 3,015 439 Substandard 2,848 1,165 $ 97,978 $ 41,158 Consumer Credit Exposure Based Loans to On Payment individuals & Activity overdrafts Pass $ 9,820 Non-pass 7 $ 9,827 Total Loans: December 31, 2015 Commercial Credit Exposure By Commercial Commercial Internally and real Multi-family Assigned Grade industrial Construction estate residential (dollars in thousands) Superior $ 730 $ - $ - $ - Very good 1,314 355 114 - Good 8,241 5,827 26,538 Acceptable 25,014 19,059 144,717 32,355 Acceptable with care 37,980 79,817 74,169 7,685 Special mention 58 2,015 7,657 - Substandard 154 615 6,064 698 Doubtful - - - - Loss - - - - $ 73,491 $ 107,688 $ 259,259 $ 40,738 Consumer Credit Exposure By Internally 1-to-4 family Assigned Grade residential HELOC Pass $ 80,596 $ 40,770 Special mention 3,678 448 Substandard 3,681 784 $ 87,955 $ 42,002 Consumer Credit Exposure Based Loans to On Payment individuals & Activity overdrafts Pass $ 7,236 Non-pass 19 $ 7,255 The process of determining the allowance for loan losses is driven by the risk grade system and the loss experience on non-risk graded homogeneous types of loans. The Bank’s allowance for loan losses is calculated and determined, at a minimum, each fiscal quarter end. The allowance for loan losses represents management’s estimate of the appropriate level of reserve to provide for probable losses inherent in the loan portfolio. In determining the allowance for loan losses and any resulting provision to be charged against earnings, particular emphasis is placed on the results of the loan review process. Consideration is also given to a review of individual loans, historical loan loss experience, the value and adequacy of collateral and economic conditions in the Bank’s market areas. For loans determined to be impaired, the impairment is based on discounted expected cash flows using the loan’s initial effective interest rate or the fair value of the collateral (less selling costs) for certain collateral dependent loans. This evaluation is inherently subjective as it requires material estimates, including the amounts and timing of future cash flows expected to be received on impaired loans that may be susceptible to significant change. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses. Such agencies may require the Bank to recognize changes to the allowance based on their judgments about information available to them at the time of their examinations. Loans are charged off when in the opinion of management, they are deemed to be uncollectible. Recognized losses are charged against the allowance, and subsequent recoveries are added to the allowance. The Credit Management Committee of the Board of Directors has responsibility for oversight. Management believes the allowance for loan losses of $ 8.4 Determining the fair value of PCI loans at acquisition required the Company to estimate cash flows expected to result from those loans and to discount those cash flows at appropriate rates of interest. For such loans, the excess of cash flows expected to be collected at acquisition over the estimated fair value is recognized as interest income over the remaining lives of the loans and is called the accretable yield. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition reflects the impact of estimated credit losses and is called the nonaccretable difference. In accordance with GAAP, there was no carry-over of previously established allowance for credit losses from the acquired company. December 31, December 31, July 25, 2016 2015 2014 (Dollars in thousands) Contractually required payments $ 21,761 $ 25,341 $ 34,329 Nonaccretable difference 1,415 1,411 1,402 Cash flows expected to be collected 20,346 23,930 32,927 Accretable yield 2,626 2,822 4,360 Fair value $ 17,720 $ 21,108 $ 28,567 2016 2015 (dollars in thousands) Accretable yield, beginning of period $ 2,822 $ 3,762 Accretion (1,055) (1,220) Reclassification from nonaccretable difference 261 163 Other changes, net 598 117 Accretable yield, end of period $ 2,626 $ 2,822 Allowance for Loan Losses The allowance for loan losses is a reserve established through provisions for loan losses charged to income and represents management’s best estimate of loan losses inherent within the existing portfolio of loans. The allowance, in the judgment of management, is necessary to reserve for estimated losses and risk inherent in the loan portfolio. The Company’s allowance for loan loss methodology is based on historical loss experience by type of credit and internal risk grade, specific homogeneous risk pools and specific loss allocations, with adjustments for current events and conditions. The Company’s process for determining the appropriate level of reserves is designed to account for changes in credit quality as they occur. The provision for loan losses reflects loan quality trends, including the levels of, and trends related to, past due loans and economic conditions at the local and national levels. It also considers the quality and risk characteristics of the Company’s loan origination and servicing policies and practices. Individual reserves are calculated according to ASC Section 310-10-35 against loans evaluated individually and deemed to most likely be impaired. Impaired loans include all loans in non-accrual status, all troubled debt restructures, all substandard loans that are deemed to be collateral dependent, and other loans that management determines require reserves. The Company’s allowance for loan losses model calculates historical loss rates using a loss migration analysis associating losses to the risk-graded pool to which they relate for each of the previous twelve quarters. Then, using a twelve quarter look back period, loss factors are calculated for each risk-graded pool. The model incorporates various internal and external qualitative and environmental factors as described in the Interagency Policy Statement on the Allowance for Loan and Lease Losses, dated December 2006. Input for these factors is determined on the basis of management observation, judgment, and experience. The factors utilized by the Company in the new model for all loan classes are as follows: Internal Factors · Concentrations Measures the increased risk derived from concentration of credit exposure in particular industry segments within the portfolio. · Policy exceptions Measures the risk derived from granting terms outside of underwriting guidelines. · Compliance exceptions Measures the risk derived from granting terms outside of regulatory guidelines. · Document exceptions Measures the risk exposure resulting from the inability to collect due to improperly executed documents and collateral imperfections. · Financial information monitoring Measures the risk associated with not having current borrower financial information. · Nonaccrual Reflects increased risk of loans with characteristics that merit nonaccrual status. · Delinquency Reflects the increased risk deriving from higher delinquency rates. · Personnel turnover Reflects staff competence in various types of lending. · Portfolio growth Measures the impact of growth and potential risk derived from new loan production. External Factors · GDP growth rate Impact of general economic factors that affect the portfolio. · North Carolina unemployment rate Impact of local economic factors that affect the portfolio. · Peer group delinquency rate Measures risk associated with the credit requirements of competitors. · Prime rate change Measures the effect on the portfolio in the event of changes in the prime lending rate. Each pool is assigned an adjustment to the potential loss percentage by assessing its characteristics against each of the factors listed above. Reserves are generally divided into three allocation segments: 1. Individual reserves. These are calculated according to ASC Section 310-10-35 against loans evaluated individually and deemed to most likely be impaired. All loans in non-accrual status and all substandard loans that are deemed to be collateral dependent are assessed for impairment. Loans are deemed uncollectible |
OTHER REAL ESTATE OWNED
OTHER REAL ESTATE OWNED | 12 Months Ended |
Dec. 31, 2016 | |
Banking and Thrift [Abstract] | |
Real Estate Owned [Text Block] | NOTE F OTHER REAL ESTATE OWNED The following table explains changes in other real estate owned (“OREO”) during the years ended December 31, 2016 and 2015 (dollars in thousands): December 31, December 31, 2016 2015 (Dollars in thousands) Beginning balance January 1 $ 1,401 $ 1,585 Sales (2,062) (635) Write-downs and loss on sales (158) (139) Transfers 1,418 590 Ending balance $ 599 $ 1,401 At December 31, 2016 and December 31, 2015, the Company had $599,000 and $ 1.4 |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE G - PREMISES AND EQUIPMENT 2016 2015 (dollars in thousands) Land $ 5,054 $ 5,520 Buildings 14,519 14,841 Furniture and equipment 5,846 5,249 Leasehold improvements 144 144 Construction in progress - - 25,563 25,754 Less accumulated depreciation 7,632 6,676 Total $ 17,931 $ 19,078 Depreciation amounting to approximately $ 1.1 736,000 Total Lease Payments (dollars in thousands) 2017 $ 338 2018 358 2019 369 2020 350 2021 341 Years thereafter 591 $ 2,347 During 2016, 2015, and 2014, payments under operating leases were approximately $ 370,000 401,000 290,000 182,000 84,000 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE H GOODWILL AND OTHER INTANGIBLE ASSETS Core Deposit Intangible Accumulated Goodwill Gross Amortization Net (In thousands) Balance at January 1, 2014 $ - $ 1,269 $ (1,087) $ 182 Goodwill and core deposit intangible resulting from merger 6,931 1,790 - 1,790 Amortization expense - - (347) (347) Balance at December 31, 2014 6,931 3,059 (1,434) 1,625 Core deposit intangible resulting from branch acquisition - 160 - 160 Amortization expense - - (544) (544) Balance at December 31, 2015 6,931 3,219 (1,978) 1,241 Amortization expense - - (431) (431) Balance at December 31, 2016 $ 6,931 $ 3,219 $ (2,409) $ 810 Goodwill represents the excess of the purchase price over the fair value of acquired net assets under the acquisition method of accounting. The value of acquired core deposit relationships was determined using the present value of the difference between a market participant's cost of obtaining alternative funds and the cost to maintain the acquired deposit base. The Company’s core deposit intangible is amortized using the effective yield method over six years. The gross amount of the core deposit intangible is $ 3.2 2.4 810,000 2017 $ 339 2018 246 2019 154 2020 61 2021 9 Thereafter 1 $ 810 |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2016 | |
Deposits [Abstract] | |
Deposit Liabilities Disclosures [Text Block] | NOTE I DEPOSITS Total Time Deposits (dollars in thousands) 2017 $ 246,828 2018 24,114 2019 9,040 2020 10,576 2021 12,935 Thereafter - $ 303,493 Time deposits with balances of $250,000 or more were $ 68.8 61.6 |
REPURCHASE AGREEMENTS
REPURCHASE AGREEMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Banking and Thrift [Abstract] | |
Remaining Contractual Maturity Of The Securities Sold Under Agreements To Repurchase By Class Of Collateral Pledged [Text Block] | NOTE J - REPURCHASE AGREEMENTS We utilize securities sold under agreements to repurchase to facilitate the needs of our customers. Repurchase agreements are transactions whereby we offer to sell to a counterparty an undivided interest in an eligible security at an agreed upon purchase price, and which obligates the Company to repurchase the security on an agreed upon date at an agreed upon repurchase price plus interest at an agreed upon rate. Securities sold under agreements to repurchase are recorded at the amount of cash received in connection with the transaction and are reflected as short-term borrowings. We monitor collateral levels on a continuous basis and maintain records of each transaction specifically describing the applicable security and the counterparty’s fractional interest in that security, and we segregate the security from its general assets in accordance with regulations governing custodial holdings of securities. The primary risk with our repurchase agreements is market risk associated with the investments securing the transactions, as we may be required to provide additional collateral based on fair value changes of the underlying investments. Securities pledged as collateral under repurchase agreements are maintained with our safekeeping agents. The carrying value of available for sale investment securities pledged as collateral under repurchase agreements totaled $ 12.0 12.1 December 31, 2016 Remaining Contractual Maturity of the Agreements Overnight and Up to 30 30-90 Greater than (Dollars in thousands) continuous Days Days 90 Days Total Repurchase agreements U.S. Government agencies-GSE’s $ 5,568 $ - $ - $ - $ 5,568 Mortgage-backed Securities-GSE’s 6,496 8 - - - 6,496 Total borrowings $ 12,064 $ - $ - $ - $ 12,064 Gross amount of recognized liabilities for repurchase agreements $ 12,003 December 31, 2015 Remaining Contractual Maturity of the Agreements Overnight and Up to 30 30-90 Greater than (Dollars in thousands) continuous Days Days 90 Days Total Repurchase agreements U.S. Government agencies-GSE’s $ 4,206 $ - $ - $ - $ 4,206 Mortgage-backed Securities-GSE’s 7,943 - - - 7,943 Total borrowings $ 12,149 $ - $ - $ - $ 12,149 Gross amount of recognized liabilities for repurchase agreements $ 12,146 |
SHORT-TERM AND LONG-TERM DEBT
SHORT-TERM AND LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | NOTE K SHORT-TERM AND LONG-TERM DEBT At December 31, 2016, the Company had $ 37.1 23.0 25.1 12.4 10.6 93.5 At December 31, 2015, the Company had $ 29.7 28.7 12.4 20.7 78.6 Securities sold under agreements to repurchase generally mature within one to four days from the transaction date and are classified as short-term debt. Securities sold under agreements to repurchase are reflected at the amount of cash received in connection with the transaction. These repurchase agreements are collateralized by U. S. Government agency obligations and all are floating rate. The following table presents certain information for securities sold under agreements to repurchase: 2016 2015 (Dollars in thousands) Balance at December 31 $ 12,003 $ 12,149 Weighted average interest rate at December 31 0.32 % 0.34 % Maximum amount outstanding at any month-end during the year $ 12,003 $ 13,405 Average daily balance outstanding during the year $ 9,973 $ 13,337 Average annual interest rate paid during the year 0.30 % 0.31 % At December 31, 2016, the Company had $ 35.7 87,000 Date Amount Rate Maturity (dollars in thousands) Advance type: Fixed rate credit $ 15,000 0.63 % 1/27/2017 Fixed rate credit 5,000 0.61 % 1/30/2017 Convertible 5,087 4.63 % 6/28/2017 Fixed rate credit 10,000 1.38 % 7/30/2018 Principal Reducing 667 1.09 % 8/13/2018 On September 20, 2004, $ 12.4 The Company pays interest on the junior subordinated debentures at an annual rate, reset quarterly, equal to 3 month LIBOR plus 2.15%. The debentures are redeemable on September 20, 2009 or afterwards in whole or in part, on any March 20, June 20, September 20 or December 20. Redemption is mandatory at September 20, 2034. The Company has fully and unconditionally guaranteed repayment of the trust-preferred securities. The Company’s obligation under the guarantee is unsecured and subordinate to senior and subordinated indebtedness of the Company. The trust preferred securities qualify as Tier 1 capital for regulatory capital purposes subject to certain limitations, none of which were applicable at December 31, 2016. Lines of credit amounted to $ 174.5 35.7 138.8 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | NOTE L - INCOME TAXES 2016 2015 2014 (dollars in thousands) Current tax provision: Federal $ 2,998 $ 2,094 $ 1,067 State 498 354 240 Total current tax provision 3,496 2,448 1,307 Deferred tax provision: Federal 52 752 123 State 99 218 7 Total deferred tax provision 151 970 130 Net income tax provision $ 3,647 $ 3,418 $ 1,437 34 2016 2015 2014 (dollars in thousands) Income tax at federal statutory rate $ 3,536 $ 3,390 $ 1,290 Increase (decrease) resulting from: State income taxes, net of federal tax effect 394 377 164 Tax-exempt interest income (151) (172) (116) Income from life insurance (201) (213) (92) Incentive stock option expense 24 13 18 Merger expenses - - 151 Other permanent differences 45 23 22 Provision for income taxes $ 3,647 $ 3,418 $ 1,437 2016 2015 (dollars in thousands) Deferred tax assets relating to: Allowance for loan losses $ 3,026 $ 2,572 Deferred compensation 294 305 Supplemental executive retirement plan 17 58 Acquisition accounting 986 1,624 Core deposit intangible 165 61 Write-downs on foreclosed real estate 53 92 Other 184 157 Total deferred tax assets 4,725 4,869 Deferred tax liabilities relating to: Premises and equipment (1,287) (1,285) Deferred loan fees/costs (70) (57) Unrealized gains on available-for-sale securities (204) (292) Other (32) (39) Total deferred tax liabilities (1,593) (1,673) Net recorded deferred tax asset, included in other assets $ 3,132 $ 3,196 The Company’s policy is to report interest and penalties, if any, related to uncertain tax positions in income tax expense in the Consolidated Statements of Operations. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2013. As of December 31, 2016 and 2015, the Company has no uncertain tax positions. Deferred Tax Asset The Company’s net deferred tax asset was $ 3.2 3.2 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) [Text Block] | NOTE M ACCUMULATED OTHER COMPREHENSIVE INCOME The following table presents changes in accumulated other comprehensive income for the years ended December 31, 2016 and 2015. Year Ended December 31, 2016 2015 (In thousands) Beginning balance $ 490 $ 809 Unrealized (gain) loss on investment securities available for sale (185) (176) Tax effect 67 65 Other comprehensive income (loss) before reclassification (118) (111) Amounts reclassified from accumulated comprehensive income: Realized (gain) loss on investment securities included in net income (22) (332) Tax effect 8 124 Total reclassifications net of tax (14) (208) Net current period other comprehensive income (loss) (132) (319) Ending balance $ 358 $ 490 |
REGULATORY MATTERS
REGULATORY MATTERS | 12 Months Ended |
Dec. 31, 2016 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Capital Requirements under Banking Regulations [Text Block] | NOTE N - REGULATORY MATTERS The Company is subject to various regulatory capital requirements administered by federal and state 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 material adverse effect on the Company’s consolidated financial statements. Quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios, as set forth in the table below. Management believes, as of December 31, 2016, that the Company meets all capital adequacy requirements to which it is subject. The Company’s significant assets are its investments in Select Bank & Trust Company and New Century Statutory Trust I. Regulatory authorities may limit payment of dividends by any bank when it is determined that such a limitation is in the public interest and is necessary to ensure financial soundness of the bank. The North Carolina Commissioner of Banks and the FDIC are also authorized to prohibit the payment of dividends under certain other circumstances. A significant measure of the strength of a financial institution is its capital base. Federal regulations have classified and defined capital into the following components: (1) Tier 1 capital, which includes common shareholders’ equity and qualifying preferred equity, and (2) Tier 2 capital, which includes a portion of the allowance for loan losses, certain qualifying long-term debt and preferred stock which does not qualify as Tier 1 capital. Financial institutions and holding companies became subject to the Basel III capital requirements beginning on January 1, 2015. A new part of the capital ratios profile is the Common Equity Tier 1 risk-based ratio which does not include limited life components such as trust preferred securities and Small Business Lending Fund (“SBLF”) preferred stock. Minimum capital levels are regulated by risk-based capital adequacy guidelines, which require a financial institution to maintain capital as a percentage of its assets, and certain off-balance sheet items adjusted for predefined credit risk factors (risk-adjusted assets). As the following tables indicate, at December 31, 2016 and 2015, the Company and its Bank subsidiary both exceeded minimum regulatory capital requirements as specified below. Minimum for capital Actual adequacy purposes The Company: Amount Ratio Amount Ratio December 31, 2016: (dollars in thousands) Total Capital (to Risk-Weighted Assets) $ 116,909 15.12 % $ 61,876 8.00 % Tier 1 Capital (to Risk-Weighted Assets) 108,498 14.03 % 46,407 6.00 % Common Equity Tier 1 (to Risk-Weighted Assets) 96,498 12.48 % 34,805 4.50 % Tier 1 Capital (to Average Assets) 108,498 12.99 % 33,422 4.00 % Minimum for capital Actual adequacy purposes The Company: Amount Ratio Amount Ratio December 31, 2015: (dollars in thousands) Total Capital (to Risk-Weighted Assets) $ 115,805 16.01 % $ 57,852 8.00 % Tier 1 Capital (to Risk-Weighted Assets) 108,784 15.04 % 43,389 6.00 % Common Equity Tier 1 (to Risk-Weighted Assets) 89,139 12.33 % 32,542 4.50 % Tier 1 Capital (to Average Assets) 108,784 13.81 % 31,505 4.00 % Select Bank & Trust Company’s actual capital amounts and ratios are presented in the table below as of December 31, 2016 and 2015: Minimum to be well Minimum for capital capitalized under prompt Actual adequacy purposes corrective action provisions The Bank: Amount Ratio Amount Ratio Amount Ratio December 31, 2016: (dollars in thousands) Total Capital (to Risk-Weighted Assets) $ 112,375 14.53 % $ 61,876 8.00 % 77,346 10.00 % Tier 1 Capital (to Risk-Weighted Assets) 103,964 13.44 % 46,407 6.00 % 61,876 8.00 % Common equity Tier 1 (to Risk-Weight Assets) 103,964 13.44 % 34,806 4.50 % 50,275 6.50 % Tier 1 Capital (to Average Assets) 103,964 12.44 % 33,422 4.00 % 41,777 5.00 % Minimum to be well Minimum for capital capitalized under prompt Actual adequacy purposes corrective action provisions The Bank: Amount Ratio Amount Ratio Amount Ratio December 31, 2015: (dollars in thousands) Total Capital (to Risk-Weighted Assets) $ 111,773 15.47 % $ 57,809 8.00 % 72,261 10.00 % Tier 1 Capital (to Risk-Weighted Assets) 104,752 14.50 % 43,357 6.00 % 57,809 8.00 % Common equity Tier 1 (to Risk-Weight Assets) 104,752 14.50 % 32,517 4.50 % 46,970 6.50 % Tier 1 Capital (to Average Assets) 104,752 13.31 % 31,483 4.00 % 39,354 5.00 % During 2004, the Company issued $ 12.4 12.0 Management expects that the Bank will remain “well-capitalized” for regulatory purposes, although there can be no assurance that additional capital will not be required in the future. |
OFF-BALANCE SHEET RISK
OFF-BALANCE SHEET RISK | 12 Months Ended |
Dec. 31, 2016 | |
Off Balance Sheet Risk [Abstract] | |
Financial Instruments Disclosure [Text Block] | NOTE O - OFF-BALANCE SHEET RISK The Company is a party to financial instruments with off-balance sheet credit risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheet. The contract or notional amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of conditions established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since some of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company, upon extension of credit is based on management’s credit evaluation of the borrower. Collateral obtained varies but may include real estate, stocks, bonds, and certificates of deposit. A summary of the contract amount of the Company’s exposure to off-balance sheet credit risk as of December 31, 2016 is as follows: Financial instruments whose contract amounts represent credit risk: (In thousands) Undisbursed commitments $ 141,176 Letters of credit 1,969 The Company has legally binding delayed equity commitments to private investment funds. These commitments are not expected to be called, and therefore, are not reflected in the financial statements. The amount of these commitments at December 31, 2016 and 2015 was $ 200,000 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | NOTE P FAIR VALUE MEASUREMENTS ASC 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 does not require any new fair value measurements, but clarifies and standardizes some divergent practices that have emerged since prior guidance was issued. ASC 820 creates a three-level hierarchy under which individual fair value estimates are to be ranked based on the relative reliability of the inputs used in the valuation. The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: Fair Value Hierarchy The Company groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: · Level 1 Valuation is based upon quoted prices for identical instruments traded in active markets. · Level 2 Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market. · Level 3 Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flows models and similar techniques. The following is a description of valuation methodologies used for assets and liabilities recorded at fair value on a recurring basis. Investment Securities Available-for-Sale Investment securities available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include U.S. government agencies GSE’s, mortgage-backed securities issued by GSE’s and municipal bonds. Securities classified as Level 3 include asset-backed securities in less liquid markets. Valuation techniques are consistent with methodologies used in prior periods. Quoted Prices in Significant Investment securities Active Markets Other Significant available for sale for Identical Observable Unobservable December 31, 2016 Fair value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) U.S. government agencies GSE's $ 14,159 $ - $ 14,159 $ - Mortgage-backed securities - GSE’s 32,363 - 32,363 - Municipal bonds 15,735 - 15,735 - Total $ 62,257 $ - $ 62,257 $ - Quoted Prices in Significant Investment securities Active Markets Other Significant available for sale for Identical Observable Unobservable December 31, 2015 Fair value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) U.S. government agencies GSE's $ 21,226 $ - $ 21,226 $ - Mortgage-backed securities - GSE’s 39,536 - 39,536 - Municipal bonds 19,947 - 19,947 - Total $ 80,709 $ - $ 80,709 $ - Loans The following are descriptions of valuation methodologies used for assets and liabilities recorded at fair value on a recurring basis. The Company does not record loans at fair value on a recurring basis. However, from time to time, a loan is considered impaired and a specific reserve in the allowance for loan losses is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment in accordance with ASC 310, “Receivables”. The fair value of impaired loans is estimated using one of several methods, including collateral value, liquidation value and discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. At December 31, 2016, substantially all of the total impaired loans were evaluated based on the fair value of the collateral. Impaired loans where a specific reserve is established based on the fair value of collateral require classification in the fair value hierarchy. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the impaired loan as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the impaired loan as nonrecurring Level 3. There were no transfers between levels from prior reporting periods. Valuation techniques are consistent with prior periods. The significant unobservable input used in the fair value measurement of the Company’s impaired loans range between 6 61 4 50 Foreclosed Real Estate Foreclosed real estate are properties recorded at the lower of cost or net realizable value, less the estimated costs to sell, at the date of foreclosure. Inputs include appraised values on the properties or recent sales activity for similar assets in the property’s market adjusted for certain discounts. Therefore, foreclosed real estate is classified within Level 3 of the hierarchy. Valuation techniques are consistent with prior periods. The significant unobservable input used in the fair value measurement of the Company’s foreclosed real estate range between 6 10 6 10 Assets held for sale During 2015, a branch facility was taken out of service as part of the Company’s branch restructuring plan and reclassified as held for sale. The property is recorded at the remaining book balance of the asset or an estimated fair value less estimated selling costs, whichever is less. Inputs include appraised values on the properties or recent sales activity for similar assets in the property’s market. The significant unobservable input used is the discount applied to appraised values to account for expected liquidation and selling costs ranged between 1 25 Quoted Prices in Significant Active Markets Other Significant Asset Category for Identical Observable Unobservable December 31, 2016 Fair value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Impaired loans $ 5,805 $ - $ - $ 5,805 Assets held for sale 846 - - 846 Foreclosed real estate 599 - - 599 Total $ 7,250 $ - $ - $ 7,250 Quoted Prices in Significant Active Markets Other Significant Asset Category for Identical Observable Unobservable December 31, 2015 Fair value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Impaired loans $ 6,635 $ - $ - $ 6,635 Assets held for sale 846 - - 846 Foreclosed real estate 1,401 - - 1,401 Total $ 8,882 $ - $ - $ 8,882 As of December 31, 2016, the Bank identified $ 11.0 11.0 2.8 117,000 88,000 10.0 10.0 1.6 94,000 1.6 Financial instruments include cash and due from banks, interest-earning deposits with banks, investments, loans, deposit accounts and borrowings. Due to the nature of the Company’s business, a significant portion of its assets and liabilities consist of financial instruments, the estimated values of which are disclosed. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no active market readily exists for a portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. The following table presents the carrying values and estimated fair values of the Company's financial instruments at December 31, 2016 and 2015: December 31, 2016 Carrying Estimated Amount Fair Value Level 1 Level 2 Level 3 (dollars in thousands) Financial assets: Cash and due from banks $ 14,372 $ 14,372 $ 14,372 $ - $ - Certificates of deposits 1,000 1,000 1,000 - - Interest-earning deposits in other banks 40,342 40,342 40,342 - - Investment securities available for sale 62,257 62,257 - 62,257 - Loans, net 668,784 671,208 - - 671,208 Accrued interest receivable 2,768 2,768 - - 2,768 Stock in the FHLB 2,251 2,251 - - 2,251 Other non-marketable securities 703 703 - - 703 Assets held for sale 846 846 - - 846 Financial liabilities: Deposits $ 679,661 $ 678,328 $ - $ 678,328 $ - Short-term debt 37,090 37,177 - 37,177 - Long-term debt 23,039 17,649 - 17,649 - Accrued interest payable 221 221 - 221 - December 31, 2015 Carrying Estimated Amount Fair Value Level 1 Level 2 Level 3 (dollars in thousands) Financial assets: Cash and due from banks $ 12,567 $ 12,567 $ 12,567 $ - $ - Certificates of deposits 1,000 1,000 1,000 - - Interest-earning deposits in other banks 49,842 49,842 49,842 - - Investment securities available for sale 80,709 80,709 - 80,709 - Loans, net 610,377 615,754 - - 615,754 Accrued interest receivable 2,350 2,350 - - 2,350 Stock in the FHLB 2,112 2,112 - - 2,112 Other non-marketable securities 705 705 - - 705 Assets held for sale 846 846 - - 846 Financial liabilities: Deposits $ 651,161 $ 651,255 $ - $ 651,255 $ - Short-term debt 29,673 29,673 - 29,673 - Long-term debt 28,703 23,718 - 23,718 - Accrued interest payable 232 232 - 232 - Cash and Due from Banks, Certificates of Deposits, Interest-Earning Deposits in Other Banks and Federal Funds Sold The carrying amounts for cash and due from banks, certificates of deposit, interest-earning deposits in other banks and federal funds sold approximate fair value because of the short maturities of those instruments. Investment Securities Available for Sale Fair value for investment securities available for sale equals the quoted market price if such information is available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. Loans For certain homogenous categories of loans, such as residential mortgages, fair value is estimated using the quoted market prices for securities backed by similar loans, adjusted for differences in loan characteristics. The fair value of other types of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Stock in Federal Home Loan Bank of Atlanta The fair value for FHLB stock approximates carrying value, based on the redemption provisions of the Federal Home Loan Bank stock. Other Non-Marketable Securities The fair value of equity instruments in other non-marketable securities is assumed to approximate carrying value. Assets Held for Sale The fair value of assets held for sale approximates the carrying value. Deposits The fair value of demand deposits is the amount payable on demand at the reporting date. The fair values of time deposits are estimated using the rates currently offered for instruments of similar remaining maturities. Short-Term Debt Short-term debt consists of repurchase agreements and FHLB advances with maturities of less than twelve months. The carrying values of these instruments is a reasonable estimate of fair value. Long-Term Debt The fair values of long-term debt are based on discounting expected cash flows at the interest rate for debt with the same or similar remaining maturities and collateral requirements. Accrued Interest Receivable and Accrued Interest Payable The carrying amounts of accrued interest receivable and payable approximate fair value, because of the short maturities of these instruments. Financial Instruments with Off-Balance Sheet Risk With regard to financial instruments with off-balance sheet risk, it is not practicable to estimate the fair value of future financing commitments. |
EMPLOYEE AND DIRECTOR BENEFIT P
EMPLOYEE AND DIRECTOR BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE Q - EMPLOYEE AND DIRECTOR BENEFIT PLANS 401(k) Plan The Company has a 401(k) Plan and substantially all employees participate in the plan. The Company matches 100% of the first 6% of an employee’s compensation contributed to the plan. 382,000 365,000 318,000 Employment Agreements The Company has entered into employment agreements with five executive officers to promote a stable and competent management base. These agreements provide for benefits as specified in the contracts and cannot be terminated by the Board of Directors, except for cause, without prejudicing the officer’s right to receive certain vested rights, including compensation. In the event of a change in control of the Company, as outlined in the agreements, the acquirer will generally be bound by the terms of those contracts. Supplemental Executive Retirement Plans The Company implemented a nonqualified supplemental executive retirement plan for the former Chief Executive Officer during 2003. Benefits accrued and vested during the period of employment, and will be paid in monthly benefit payments over the officer’s life after retirement. Provisions of $ 22,000 130,000 15,000 306,000 345,000 As part of the acquisition of Progressive State Bank (“Progressive”), the Company assumed a liability for the supplemental early retirement plan for Progressive’s Chief Executive Officer. Provisions of $ 17,000 18,000 18,000 326,000 345,000 Directors Deferred Compensation The Company has instituted a Directors’ Deferral Plan (“Deferral Plan”) whereby individual directors may elect annually to defer receipt of all or a designated portion of their directors’ fees for the coming year. Amounts so deferred are used to purchase shares of the Company’s common stock on the open market by the administrator of the Deferral Plan or to issue shares from the Company’s authorized but unissued shares, with such deferred compensation disbursed in the future as specified by the director at the time of his or her deferral election. All deferral amounts and matching contributions, if any, are paid into a rabbi trust with a separate account for each participant under the plan. Net compensation and other expenses attributable to this plan for the years ended December 31, 2016, 2015 and 2014 were $ 201,000 18,000 145,000 2.3 2.1 Stock Option Plans The Company has shareholder approved stock option plans under which options are granted to directors and employees of the Company and its subsidiary. · On May 11, 2010, the shareholders of the Company approved the implementation of the New Century Bancorp, Inc. 2010 Omnibus Stock Ownership and Long-Term Incentive Plan (the “Omnibus Plan”). The Omnibus Plan provides for the grant of incentive stock options, non-qualified stock options, restricted stock, long-term incentive compensation units and stock appreciation rights. Officers and other full-time employees of the Company and the Bank, including executive officers and directors, are eligible to receive awards under the Omnibus Plan. Grants under the New Century Bancorp, Inc. 2010 Omnibus Stock Ownership and Long-Term Incentive Plan (the “Omnibus Plan”) to directors are immediately vested and grants to employees are vested over a five-year period. However, no projections have been made as to specific award terms or recipients. There were 36,000 40,000 2016 2015 2014 Estimated fair value of options granted $ 4.17 $ 3.74 $ - Assumptions in estimating average option values: Risk-free interest rate 1.59 % 1.87 % - % Dividend yield - % - % - % Volatility 46.09 % 48.13 % - % Expected life (in years) 8.00 8.00 - Outstanding Options Exercisable Options Shares Weighted Weighted Available Average Average for Future Number Exercise Number Exercise Grants Outstanding Price Outstanding Price At December 31, 2015 831,102 266,436 $ 7.04 218,720 $ 7.11 Options authorized - - - - - Options acquired - - - - - Options granted/vested (36,000) 36,000 8.05 12,800 3.39 Options exercised 62,402 (62,402) 4.51 (62,402) 4.51 Options expired 16,221 (34,800) 16.22 (34,800) 16.22 Options forfeited 4,252 (4,252) 4.81 (4,252) $ 4.81 At December 31, 2016 877,977 200,982 $ 6.46 130,066 $ 5.92 The aggregate intrinsic value of options outstanding as of December 31, 2016 and 2015 was $ 724,000 558,000 554,000 493,000 279,000 29,000 30,000 1.83 The weighted average remaining life of options outstanding and options exercisable as of December 31, 2016 was 5.25 3.45 4.33 3.30 Number Number of options of options Range of Exercise Prices outstanding exercisable $2.25 - $7.07 144,982 110,066 $7.08 - $10.69 46,000 10,000 $10.70 - $16.22 10,000 10,000 Outstanding at end of year 200,982 130,066 Weighted-Average Grant Date Non-vested Options Options Fair Value Non-vested at December 31, 2015 47,715 $ 3.62 Granted 36,000 4.17 Vested (12,800) 3.39 Expired - - Forfeited - - Non-vested at December 31, 2016 70,915 3.94 For the years ended December 31, 2016, 2015 and 2014, the intrinsic value of options exercised was $ 333,000 836,000 81,000 43,000 17,000 21,000 634,000 527,000 821,000 |
PARENT COMPANY FINANCIAL DATA
PARENT COMPANY FINANCIAL DATA | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | NOTE R - PARENT COMPANY FINANCIAL DATA Following are the condensed balance sheets of Select Bancorp as of and for the years ended December 31, 2016 and 2015 and the related condensed statements of operations and cash flows for each of the years in the three-year period ended December 31, 2016: December 31, 2016 and 2015 (dollars in thousands) 2016 2015 Assets Cash balances with Select Bank & Trust $ 314 $ 126 Investment in Select Bank & Trust 111,739 112,670 Investment in New Century Statutory Trust I 551 540 Other assets 4,239 3,931 Total Assets $ 116,843 $ 117,267 Liabilities and Shareholders’ Equity Junior subordinated debentures $ 12,372 $ 12,372 Accrued interest and other liabilities 198 193 Total Liabilities 12,570 12,565 Shareholders’ equity: Preferred stock - 7,645 Common stock 11,645 11,583 Additional paid-in capital 69,597 69,061 Retained earnings 22,673 15,923 Common stock issued to deferred compensation trust (2,340) (2,139) Directors’ Deferred Compensation Plan Rabbi Trust 2,340 2,139 Accumulated other comprehensive income 358 490 Total Shareholders’ Equity 104,273 104,702 Total Liabilities and Shareholders’ Equity $ 116,843 $ 117,267 Years Ended December 31, 2016, 2015 and 2014 (dollars in thousands) 2016 2015 2014 Equity in earnings of subsidiaries $ (788) $ 6,836 $ 2,715 Dividends from subsidiaries 8,195 257 - Operating expense (793) (814) (526) Income tax benefit 140 274 168 Net income $ 6,754 $ 6,553 $ 2,357 Years Ended December 31, 2016, 2015 and 2014 (dollars in thousands) 2016 2015 2014 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 6,754 $ 6,553 $ 2,357 Equity in undistributed income of subsidiaries 788 (6,836) (2,715) Stock based compensation 71 39 91 Net change in other assets (308) (3,375) (272) Net change in other liabilities 5 11 25 Net cash provided by operating activities 7,310 (3,608) (514) CASH FLOW FROM INVESTING ACTIVITIES Cash received from acquisition - - 2,056 Redemption of preferred stock (7,645) - - Net cash used in investing activities (7,645) - 2,056 CASH FLOW FROM FINANCING ACTIVITIES Proceeds from stock option exercises 527 821 218 Dividends (4) (77) (38) Net cash provided by financing activities 523 744 180 Net increase (decrease) in cash and cash equivalents 188 (2,864) 1,722 Cash and cash equivalents at beginning of year 126 2,990 1,268 Cash and cash equivalents, end of year $ 314 $ 126 $ 2,990 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | NOTE S - RELATED PARTY TRANSACTIONS The Bank has had, and expects to have in the future, banking and other transactions in the ordinary course of business with certain of its current directors, nominees for director, executive officers and associates. All such transactions are made on substantially the same terms, including interest rates, repayment terms and collateral, as those prevailing for comparable transactions with persons not related to the lender, and do not involve more than the normal risk of collection or present other unfavorable features. |
CAPITAL TRANSACTIONS
CAPITAL TRANSACTIONS | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE T CAPITAL TRANSACTIONS Common Stock During 2014 the capital of the Company increased primarily due to the acquisition of Legacy Select on July 25, 2014. The Company issued 4,416,500 202,842 370,278 Preferred Stock As part of the merger with Legacy Select, the Company amended its Articles of Incorporation to authorize the issuance of 5,000,000 On August 9, 2011, Legacy Select Bancorp issued 7,645 7.645 1 1 7 th The shares of Series A stock are redeemable at the option of Select Bancorp, upon receipt of any required regulatory approvals. All outstanding shares of the Series A stock were redeemed on January 20, 2016. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE U SUBSEQUENT EVENTS The Company has evaluated for subsequent events through the date and time the financial statements were issued and has determined there are no reportable subsequent events. |
SUMMARY OF SIGNIFICANT ACCOUN29
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, business combinations and the valuation of other real estate owned. |
Business Combinations Policy [Policy Text Block] | Business Combinations Business combinations are accounted for under the acquisition method of accounting in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805, “Business Combinations .” Assets acquired and liabilities assumed from contingencies must also be recognized at fair value if the fair value can be determined during the measurement period. Results of operations of an acquired business are included in the statement of earnings from the date of acquisition. Acquisition-related costs, including conversion and restructuring charges, are expensed as incurred. The acquired assets and assumed liabilities are recorded at estimated fair values. Management makes significant estimates and exercises significant judgment in accounting for business combinations. Management uses its judgment to assign risk ratings to loans based on credit quality, appraisals and estimated collateral values, and estimated expected cash flows to measure fair values for loans. Real estate acquired in settlement of loans is valued based upon pending sales contracts and appraised values, adjusted for current market conditions. Core deposit intangibles are valued based on a weighted combination of the income and market approach where the income approach converts anticipated economic benefits to a present value and the market approach evaluates the market in which the asset is traded to find an indication of prices from actual transactions. Management uses quoted or current market prices to determine the fair value of investment securities. Fair values of deposits and borrowings are based on current market interest rates and are inclusive of any applicable prepayment penalties. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Due from Banks, Interest-Earning Deposits in Other Banks and Federal Funds Sold For the purpose of presentation in the statements of cash flows, cash and cash equivalents are defined as those amounts included in the balance sheet captions “Cash and due from banks,” “Interest-earning deposits in other banks,” and “Federal funds sold.” |
Investment, Policy [Policy Text Block] | Certificates of Deposit Certificates of deposit are cash instruments that management has the intent and ability to hold for the foreseeable future or until maturity and are reported at cost. |
Marketable Securities, Available-for-sale Securities, Policy [Policy Text Block] | Investment Securities Available for Sale Investment securities available for sale are reported at fair value and consist of debt instruments that are not classified as either trading securities or as held to maturity securities. Unrealized holding gains and losses, net of deferred income tax, on available for sale securities are reported as a net amount in accumulated other comprehensive income. Gains and losses on the sale of investment securities available for sale are determined using the specific-identification method. |
Policy Loans Receivable, Policy [Policy Text Block] | Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity are reported at their outstanding principal balance adjusted for any charge-offs, the allowance for loan losses, and any deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. Loan origination fees and certain direct origination costs are capitalized and recognized as an adjustment of the yield of the related loan. The accrual of interest on impaired loans is discontinued when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all of the principal and interest amounts contractually due are brought current and future payments are reasonably assured. The acquired loans are segregated between those considered to be performing (“acquired performing”) and those with evidence of credit deterioration based on such factors as past due status, nonaccrual status and credit risk ratings (“purchased credit-impaired loans”). In determining the acquisition date fair value of purchased credit-impaired (“PCI”) loans, and in subsequent accounting, the Company generally aggregates purchased loans into pools of loans with common risk characteristics within the following loan categories: 1-to-4 family residential loans other than junior liens, 1-to-4 family residential junior liens, construction and land development, farm land, commercial real estate (nonowner-occupied), commercial real estate (owner-occupied), commercial and industrial, and all other loan categories. Expected cash flows at the acquisition date in excess of the fair value of loans are referred to as the “accretable yield” and recorded as interest income over the life of the loans using a level yield method if the timing and amount of the future cash flows of the pool is reasonably estimable. Subsequent to the acquisition date, significant increases in cash flows over those expected at the acquisition date are recognized as interest income prospectively. Accordingly, such loans are not classified as nonaccrual and they are considered to be accruing because their interest income relates to the accretable yield recognized under accounting for PCI loans and not to contractual interest payments. The difference between the contractually required payments and the cash flows expected to be collected at acquisition, considering the impact of prepayments, is referred to as the nonaccretable difference. The difference between the fair value of an acquired performing loan pool and the contractual amounts due at the acquisition date (the “fair value discount”) is accreted into income over the estimated life of the pool. The Company’s policy for determining when to discontinue accruing interest on acquired performing loans and the subsequent accounting for such loans is essentially the same as the policy for originated loans described earlier. Loans are deemed uncollectible at the discretion of the Chief Credit Officer, based on a variety of credit, collateral, documentation and other issues. In the case where a loan is unsecured and in default it is fully charged off. |
Loans and Leases Receivable, Nonaccrual Loan and Lease Status, Policy [Policy Text Block] | Non-accrual Loans Loans are placed on non-accrual when it has been determined that all contractual principal and interest will not be received. Any payments received on these loans are applied to principal first and then to interest only after all principal has been collected. Impaired loans include all loans in non-accrual status, all troubled debt restructures, all substandard loans that are deemed to be collateral dependent, and other loans that management determines require impairment. In the case of an impaired loan that is still on accrual basis, payments are applied to both principal and interest. |
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | Allowance for Loan Losses The provision for loan losses is based upon management’s estimate of the amount needed to maintain the allowance for loan losses at an adequate level in light of the risk inherent in the loan portfolio. In making the evaluation of the adequacy of the allowance for loan losses, management gives consideration to current economic conditions, statutory examinations of the loan portfolio by regulatory agencies, delinquency information and management’s internal review of the loan portfolio. Loans are considered impaired when it is probable that all amounts due will not be collected in accordance with the contractual terms of the loan agreement. The measurement of impaired loans is generally based on the present value of expected future cash flows discounted at the historical effective interest rate, or upon the fair value of the collateral if the loan is collateral-dependent. If the recorded investment in the loan exceeds the measure of fair value, a valuation allowance is established as a component of the allowance for loan losses. Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case, interest is recognized on a cash basis. Impaired loans, or portions thereof, are charged off when deemed uncollectible. While management uses the best information available to make evaluations, future adjustments to the allowance may be necessary if conditions differ substantially from the assumptions used in making the evaluations. In addition, regulatory examiners may require the Company to recognize adjustments to the allowance for loan losses based on their judgments about information available to them at the time of their examination. Decreases in expected cash flows of PCI loans after the acquisition date are recognized by recording an allowance for credit loss. For any significant increases in cash flows expected to be collected, the Company first adjusts any prior recorded allowance for loan and lease losses through a reversal of previously recognized allowance through provision expense, and then increases the amount of accretable yield to be recognized on a prospective basis over the pool’s remaining life. Management analyzes these acquired loan pools using various assessments of risk to determine and calculate an expected loss. The expected loss is derived using an estimate of a loss given default based upon the collateral type and/or specific review by loan officers. Trends are reviewed in terms of traditional credit metrics such as accrual status, past due status, and weighted average risk grade of the loans within each of the accounting pools. In addition, the relationship between the change in the unpaid principal balance and change in the fair value mark is assessed to correlate the directional consistency of the expected loss for each pool. |
Stock In Federal Home Loan Bank Of Atlanta [Policy Text Block] | Stock in Federal Home Loan Bank of Atlanta As a requirement for membership, the Bank invests in stock of the Federal Home Loan Bank of Atlanta (“FHLB”). This investment was carried at cost at December 31, 2016 and 2015. The Company continually monitors the financial strength of the FHLB and evaluates the investment for potential impairment. There can be no assurance that the impact of recent or future legislation on the Federal Home Loan Banks will not cause a decrease in the value of the Bank’s investment in FHLB stock. |
Other Non Marketable Securities [Policy Text Block] | Other Non-Marketable Securities Other non-marketable securities are equity instruments that are reported at cost. |
Real Estate, Policy [Policy Text Block] | Foreclosed Real Estate Real estate acquired through, or in lieu of, loan foreclosure is recorded at fair value, less the estimated cost to sell, at the date of foreclosure. After foreclosure, management periodically performs valuations of the property and adjusts the value down when the carrying value of the property exceeds the estimated net realizable value. Revenue and expenses from operations and changes in the valuation allowance are included in foreclosure-related expense. |
Property, Plant and Equipment, Policy [Policy Text Block] | Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation. Depreciation is calculated on the straight-line method over the estimated useful lives of the assets. Estimated useful lives are 40 3 10 Repairs and maintenance costs are charged to operations as incurred and additions and improvements to premises and equipment are capitalized. Upon sale or retirement, the cost and related accumulated depreciation are removed from the accounts and any gains or losses are reflected in current operations. |
Income Tax, Policy [Policy Text Block] | Income Taxes Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the tax basis of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax assets are also recognized for operating loss carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which the temporary differences are expected to be recovered or settled. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that the tax benefits will not be realized. |
Bank Owned Life Insurance [Policy Text Block] | Bank Owned Life Insurance Bank Owned Life Insurance ("BOLI") is carried at its cash surrender value on the balance sheet and is classified as a non-interest-earning asset. Death benefit proceeds received in excess of the policy's cash surrender value are recognized to income. Returns on the BOLI assets are added to the carrying value and included as non-interest income in the consolidated statement of operations. Any receipt of benefit proceeds is recorded as a reduction to the carrying value of the BOLI asset. At December 31, 2016 and 2015, the Company held no loans against its BOLI cash surrender values. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill Goodwill represents the cost in excess of the fair value of net assets acquired (including identifiable intangibles) in transactions accounted for as business combinations. Goodwill has an indefinite useful life and is evaluated for impairment annually, or more frequently if events and circumstances indicate that the asset might be impaired. An impairment loss is recognized to the extent that the carrying amount exceeds the asset’s fair value. The goodwill impairment analysis is a two-step test. The first, used to identify potential impairment, involves comparing each reporting unit’s estimated fair value to its carrying value, including goodwill. If the estimated fair value of a reporting unit exceeds its carrying value, goodwill is considered not to be impaired. In September 2011, the FASB issued ASU 2011-08, which gives entities the option of first performing a qualitative assessment to test goodwill for impairment on a reporting-unit-by-reporting-unit basis. If, after performing the qualitative assessment, an entity concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the entity would perform the two-step goodwill impairment test described in the impairment test described above. However, if, after applying the qualitative assessment, the entity concludes that it is not more likely than not that the fair value is less than the carrying amount, the two-step goodwill impairment test is not required. The Company performed the qualitative assessment as outlined in ASU 2011-08 in assessing the carrying value of goodwill related to its acquisitions as of October 5, 2016, its annual test date, and determined that it was unlikely that the fair value was less than the carrying amount and that no further testing or impairment charge was necessary. Should the Company’s future earnings and cash flows decline and/or discount rates increase, an impairment charge to goodwill and other intangible assets may be required. There have been no events subsequent to the October 5, 2016 evaluation that caused the Company to perform an interim review of the carrying value of goodwill. |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Core Deposit Intangible The Company considers its core deposits to be intangible assets with finite lives. Core deposit intangibles are being amortized using the effective interest method. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation The Company has certain stock-based employee compensation plans, described more fully in Note Q |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income The Company reports as comprehensive income all changes in shareholders' equity during the year from sources other than shareholders. Other comprehensive income refers to all components (revenues, expenses, gains, and losses) of comprehensive income that are excluded from net income. The Company's only component of other comprehensive income is unrealized gains and losses on investment securities available for sale. |
Segment Reporting, Policy [Policy Text Block] | Segment Information The Company follows the provisions of ASC 280, Segment Reporting, |
Earnings Per Share, Policy [Policy Text Block] | Net Income per Common Share and Common Shares Outstanding Basic earnings per share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to outstanding stock options. 2016 2015 2014 Weighted average number of common shares used in computing basic net income per share 11,610,705 11,502,800 8,870,114 Effect of dilutive stock options 44,406 65,011 104,270 Weighted average number of common shares and dilutive potential common shares used in computing diluted net income per share 11,655,111 11,567,811 8,974,384 |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements The following summarizes recent accounting pronouncements and their expected impact on the Company: In September 2015, the FASB issued Accounting Standard Update 2015-16. Simplifying the Accounting for Measurement Period Adjustments In June 2015, the FASB issued ASU 2015-10, Technical Corrections and Improvements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients In August 2015, the FASB deferred the effective date of ASU 2014-09, Revenue from Contracts with Customers. In April 2016, the FASB amended the Revenue from Contracts with Customers topic of the Accounting Standards Codification to clarify guidance related to identifying performance obligations and accounting for licenses of intellectual property. The amendments will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-based Payment Accounting, . In January 2015, the FASB issued ASU 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis In August 2015, the FASB issued ASU 2015-15, InterestImputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements In January 2016, the FASB issued ASU 2016-01 amending the Financial Instruments topic of the Accounting Standards Codification to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company will apply the guidance by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values will be applied prospectively to equity investments that exist as of the date of adoption of the amendments. The Company does not expect these amendments to have a material effect on its financial statements. In February 2016, the FASB issued ASU 2016-02, Leases In June 2016, the FASB issued ASU 2016-13, Financial Instruments Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In August 2016, the FASB amended the Statement of Cash Flows topic of the Accounting Standards Codification to clarify how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments will be effective for the Company for fiscal years beginning after December 15, 2017 including interim periods within those fiscal years. The Company does not expect these amendments to have a material effect on its financial statements. From time to time, the FASB issues exposure drafts for proposed statements of financial accounting standards. Such exposure drafts are subject to comment from the public, to revisions by the FASB and to final issuance by the FASB as statements of financial accounting standards. Management considers the effect of the proposed statements on the consolidated financial statements of the Company and monitors the status of changes to and proposed effective dates of exposure drafts. |
SUMMARY OF SIGNIFICANT ACCOUN30
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Weighted Average Number of Shares [Table Text Block] | Basic and diluted net income per share have been computed based upon net income as presented in the accompanying statements of operations divided by the weighted average number of common shares outstanding or assumed to be outstanding as summarized below: 2016 2015 2014 Weighted average number of common shares used in computing basic net income per share 11,610,705 11,502,800 8,870,114 Effect of dilutive stock options 44,406 65,011 104,270 Weighted average number of common shares and dilutive potential common shares used in computing diluted net income per share 11,655,111 11,567,811 8,974,384 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table provides the carrying value of acquired assets and assumed liabilities, as recorded by the Company, the fair value adjustments calculated at the time of the merger and the resulting fair value recorded by the Company. July 25, 2014 As recorded by Fair Value As recorded by Legacy Select adjustments the Company (Dollars in thousands) Assets Cash and cash equivalents $ 15,406 $ - $ 15,406 Investment securities 28,264 (284) 27,980 Loans 223,131 (5,541) 217,590 Less: allowance for loan losses (3,389) 3,389 - Premises and equipment 6,380 332 6,712 Accrued interest receivable 864 (132) 732 Other real estate owned 71 - 71 Bank owned life insurance 2,234 - 2,234 Goodwill 1,488 (1,488) - Core deposit intangible 234 1,556 1,790 Other assets 2,507 2,061 4,568 Total assets acquired $ 277,190 $ (107) $ 277,083 Liabilities Deposits: Noninterest-bearing $ 42,507 $ - $ 42,507 Interest-bearing 177,525 2,175 179,700 Total deposits 220,032 2,175 222,207 Borrowings 22,198 908 23,106 Other liabilities 565 - 565 Total liabilities assumed $ 242,795 $ 3,083 $ 245,878 Fair value of net assets assumed 31,205 Value of preferred shares issued to Legacy Select shareholders 7,645 Value of common shares issued to Legacy Select shareholders 29,857 Additional consideration ensuing from stock options issued to Legacy Select shareholders 634 Goodwill recorded for Legacy Select $ 6,931 |
Business Acquisition, Pro Forma Information [Table Text Block] | PCI loans acquired totaled $28.6 million at estimated fair value and acquired performing loans totaling $ 189.0 (Dollars in thousands) July 25, 2014 Contractually required payments $ 34,329 Nonaccretable difference 1,402 Cash flows expected to be collected 32,927 Accretable yield 4,360 Fair value at acquisition date $ 28,567 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | The amortized cost and fair value of available for sale (“AFS”) investments, with gross unrealized gains and losses, follow: December 31, 2016 Gross Gross Amortized unrealized unrealized Fair cost gains losses value (dollars in thousands) Securities available for sale: U.S. government agencies GSE’s $ 14,086 $ 98 $ (25) $ 14,159 Mortgage-backed securities GSE’s 32,082 382 (101) 32,363 Municipal bonds 15,527 209 (1) 15,735 $ 61,695 $ 689 $ (127) $ 62,257 As of December 31, 2016, accumulated other comprehensive income included net unrealized gains totaling $ 562,000 204,000 December 31, 2015 Gross Gross Amortized unrealized unrealized Fair cost gains losses value (dollars in thousands) Securities available for sale: U.S. government agencies GSE’s $ 21,321 $ 101 $ (196) $ 21,226 Mortgage-backed securities GSE’s 39,123 475 (62) 39,536 Municipal bonds 19,484 465 (2) 19,947 $ 79,928 $ 1,041 $ (260) $ 80,709 |
Schedule of Unrealized Loss on Investments [Table Text Block] | The following tables show gross unrealized losses and fair value, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position as of December 31, 2016 and 2015. 2016 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized value losses value losses value losses (dollars in thousands) Securities available for sale: U.S. government agencies GSE’s $ 2,748 $ (13) $ 1,651 $ (12) $ 4,399 $ (25) Mortgage-backed securities- GSE’s 8,778 (101) - - 8,778 (101) Municipal bonds 110 (1) - - 110 (1) Total temporarily impaired securities $ 11,636 $ (115) $ 1,651 $ (12) $ 13,287 $ (127) 2015 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized value losses value losses value losses (dollars in thousands) Securities available for sale: U.S. government agencies GSE’s $ 7,039 $ (70) $ 7,615 $ (126) $ 14,654 $ (196) Mortgage-backed securities- GSE’s 7,916 (62) - - 7,916 (62) Municipal bonds 111 (2) - - 111 (2) Total temporarily impaired securities $ 15,066 $ (134) $ 7,615 $ (126) $ 22,681 $ (260) |
Investments Classified by Contractual Maturity Date [Table Text Block] | The following table sets forth certain information regarding the amortized costs, carrying values and contractual maturities of the Company’s investment portfolio at December 31, 2016. Amortized Fair Cost Value (dollars in thousands) Securities available for sale: U.S. government agencies GSE’s Due within one year $ 2,011 $ 2,013 Due after one but within five years 5,999 6,016 Due after five but within ten years 4,174 4,226 Due after ten years 1,902 1,904 14,086 14,159 Mortgage-backed securities GSE’s Due within one year - - Due after one but within five years 29,291 29,564 Due after five but within ten years 2,791 2,799 Due after ten years - - 32,082 32,363 Municipal bonds Due within one year 1,724 1,734 Due after one but within five years 2,325 2,349 Due after five but within ten years 3,730 3,767 Due after ten years 7,748 7,885 15,527 15,735 Total securities available for sale Due within one year 3,735 3,747 Due after one but within five years 37,615 37,929 Due after five but within ten years 10,695 10,792 Due after ten years 9,650 9,789 $ 61,695 $ 62,257 |
LOANS (Tables)
LOANS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | The following is a summary of loans at December 31, 2016 and 2015: 2016 2015 Percent Percent Amount of total Amount of total (dollars in thousands) Real estate loans: 1-to-4 family residential $ 97,978 14.47 % $ 87,955 14.25 % Commercial real estate 281,723 41.60 % 259,259 41.99 % Multi-family residential 56,119 8.29 % 40,738 6.60 % Construction 100,911 14.90 % 107,688 17.44 % Home equity lines of credit (“HELOC”) 41,158 6.08 % 42,002 6.80 % Total real estate loans 577,889 85.34 % 537,642 87.08 % Other loans: Commercial and industrial 90,678 13.39 % 73,491 11.90 % Loans to individuals 9,756 1.44 % 7,207 1.17 % Overdrafts 71 0.01 % 48 0.01 % Total other loans 100,505 14.84 % 80,746 13.08 % Gross loans 678,394 618,388 Less deferred loan origination fees, net (1,199) (.18) % (990) (.16) % Total loans 677,195 100.00 % 617,398 100.00 % Allowance for loan losses (8,411) (7,021) Total loans, net $ 668,784 $ 610,377 |
Schedule of Related Party Transactions [Table Text Block] | A summary of related party loan transactions, is as follows: 2016 2015 (in thousands) Balance at January 1 $ 7,127 $ 3,397 Exposure of directors/executive officers added - Borrowings 4,143 7,115 Directors/executive officers resigned or retired from board - (66) Loan repayments (736) (3,319) Balance at December 31 $ 10,534 $ 7,127 |
Past Due Financing Receivables [Table Text Block] | The following tables present as of December 31, 2016 and 2015 an age analysis of past due loans, segregated by class of loans: 30+ Non- Total Days Accrual Past Total 2016 Past Due Loans Due Current Loans (dollars in thousands) Total Loans Commercial and industrial $ 1,459 $ 73 $ 1,532 $ 89,146 $ 90,678 Construction 221 151 372 100,539 100,911 Multi-family residential 46 346 392 55,727 56,119 Commercial real estate 589 3,807 4,396 277,327 281,723 Loans to individuals & overdrafts 23 46 69 9,758 9,827 1-to-4 family residential 631 602 1,233 96,745 97,978 HELOC 24 780 804 40,354 41,158 Deferred loan (fees) cost, net - - - - (1,199) $ 2,993 $ 5,805 $ 8,798 $ 669,596 $ 677,195 Loans- PCI Commercial and industrial $ 29 $ 73 $ 102 $ 117 $ 219 Construction - 83 83 849 932 Multi-family residential - - - 669 669 Commercial real estate 404 - 404 7,770 8,174 Loans to individuals & overdrafts - - - 100 100 1-to-4 family residential 122 373 495 6,934 7,429 HELOC - - - 197 197 $ 555 $ 529 $ 1,084 $ 16,636 $ 17,720 Loans- excluding PCI Commercial and industrial $ 1,430 $ - $ 1,430 $ 89,029 $ 90,459 Construction 221 68 289 99,690 99,979 Multi-family residential 46 346 392 55,058 55,450 Commercial real estate 185 3,807 3,992 269,557 273,549 Loans to individuals & overdrafts 23 46 69 9,658 9,727 1-to-4 family residential 509 229 738 89,811 90,549 HELOC 24 780 804 40,157 40,961 Deferred loan (fees) cost, net - - - - (1,199) $ 2,438 $ 5,276 $ 7,714 $ 652,960 $ 659,475 30+ Non- Total Days Accrual Past Total 2015 Past Due Loans Due Current Loans (dollars in thousands) Total Loans Commercial and industrial $ 455 $ 13 $ 468 $ 73,023 $ 73,491 Construction - 523 523 107,165 107,688 Multi-family residential 44 431 475 40,263 40,738 Commercial real estate 1,214 3,711 4,925 254,334 259,259 Loans to individuals & overdrafts 14 4 18 7,237 7,255 1-to-4 family residential 650 1,594 2,244 85,711 87,955 HELOC 124 359 483 41,519 42,002 Deferred loan (fees) cost, net - - - - (990) $ 2,501 $ 6,635 $ 9,136 $ 609,252 $ 617,398 Loans- PCI Commercial and industrial $ - $ - $ - $ 580 $ 580 Construction - - - 1,070 1,070 Multi-family residential - - - 689 689 Commercial real estate 424 - 424 9,955 10,379 Loans to individuals & overdrafts - - - 115 115 1-to-4 family residential 133 142 275 7,808 8,083 HELOC - - - 192 192 $ 557 $ 142 $ 699 $ 20,409 $ 21,108 Loans- excluding PCI Commercial and industrial $ 455 $ 13 $ 468 $ 72,443 $ 72,911 Construction - 523 523 106,095 106,618 Multi-family residential 44 431 475 39,574 40,049 Commercial real estate 790 3,711 4,501 244,379 248,880 Loans to individuals & overdrafts 14 4 18 7,122 7,140 1-to-4 family residential 517 1,452 1,969 77,903 79,872 HELOC 124 359 483 41,327 41,810 Deferred loan (fees) cost, net - - - - (990) $ 1,944 $ 6,493 $ 8,437 $ 588,843 $ 596,290 |
Impaired Financing Receivables [Table Text Block] | The following tables present information on loans, excluding PCI loans and loans evaluated collectively as a homogenous group, that were considered to be impaired as of December 31, 2016 and December 31, 2015: December 31, 2016 Contractual Year to Date Unpaid Related Average Interest Income Recorded Principal Allowance Recorded Recognized on Investment Balance for Loan Losses Investment Impaired Loans 2016: (dollars in thousands) With no related allowance recorded: Commercial and industrial $ 46 $ 46 $ - $ 23 $ 4 Construction 231 318 - 423 9 Commercial real estate 4,364 5,983 - 4,685 205 Loans to individuals & overdrafts 1,139 1,144 - 622 69 Multi-family residential 346 365 - 387 19 HELOC 1,041 1,378 - 870 51 1-to-4 family residential 1,000 1,278 - 1,530 83 Subtotal: 8,167 10,512 - 8,540 440 With an allowance recorded: Commercial and industrial - - - - - Construction - - - - - Commercial real estate 2,496 2,905 80 1,872 40 Loans to individuals & overdrafts 1 1 1 9 - Multi-family Residential - - - - - HELOC 34 35 19 17 1 1-to-4 family residential 296 296 17 293 14 Subtotal: 2,827 3,237 117 2,191 55 Totals: Commercial 7,483 9,617 80 7,390 277 Consumer 1,140 1,145 1 631 69 Residential 2,371 2,987 36 2,710 149 Grand Total: $ 10,994 $ 13,749 $ 117 $ 10,731 $ 495 December 31, 2015 Contractual Year to Date Unpaid Related Average Interest Income Recorded Principal Allowance Recorded Recognized on Investment Balance for Loan Losses Investment Impaired Loans 2015: (dollars in thousands) With no related allowance recorded: Commercial and industrial $ 105 $ 106 $ - $ 291 $ 11 Construction 615 764 - 957 18 Commercial real estate 5,006 7,229 - 3,830 246 Loans to individuals & overdrafts - - - - - Multi-family residential - - - - - HELOC 699 868 - 668 43 1-to-4 family residential 2,061 2,666 - 2,181 89 Subtotal: 8,486 11,633 - 7,927 407 With an allowance recorded: Commercial and industrial 13 13 2 139 1 Construction - - - 83 - Commercial real estate 1,248 1,314 73 3,063 46 Loans to individuals & overdrafts 4 4 4 2 - Multi-family Residential - - - - - HELOC - - - 142 - 1-to-4 family residential 290 290 15 370 18 Subtotal: 1,555 1,621 94 3,799 65 Totals: Commercial 6,987 9,426 75 8,363 322 Consumer 4 4 4 2 - Residential 3,050 3,824 15 3,361 150 Grand Total: $ 10,041 $ 13,254 $ 94 $ 11,726 $ 472 |
Troubled Debt Restructurings on Financing Receivables [Table Text Block] | The following tables present loans that were modified as troubled debt restructurings (“TDRs”) within the previous twelve months with a breakdown of the types of concessions made by loan class during the twelve months ended December 31, 2016 and 2015: Twelve Months Ended December 31, 2016 Pre-Modification Post-Modification Number Outstanding Outstanding of Recorded Recorded loans Investments Investments (dollars in thousands) Extended payment terms: Commercial and industrial 6 1,326 1,194 Construction 1 139 66 Commercial real estate 1 923 911 Loans to individuals and overdrafts - - - 1-to-4 family residential 2 126 126 HELOC - - - Total 10 $ 2,514 $ 2,297 Twelve Months Ended December 31, 2015 Pre-Modification Post-Modification Number Outstanding Outstanding of Recorded Recorded loans Investments Investments (dollars in thousands) Below market interest rate: Commercial and industrial - $ - $ - Construction - - - Commercial real estate - - - Loans to individuals and overdrafts - - - 1-to-4 family residential 1 51 3 HELOC - - - Total 1 51 3 Extended payment terms: Commercial and industrial - - - Construction - - - Commercial real estate - - - Multi-family residential 1 431 431 Loans to individuals and overdrafts - - - 1-to-4 family residential - - - HELOC - - - Total 1 431 431 Total 2 $ 482 $ 434 The following tables present loans that were modified as TDRs within the previous twelve months for which there was a payment default together with a breakdown of the types of concessions made by loan class during the twelve months ended December 31, 2016 and 2015: Twelve months ended December 31, 2016 Number Recorded of loans investment (dollars in thousands) Extended payment terms: Commercial and industrial 4 660 Construction 1 66 Commercial real estate - Loans to individuals and overdrafts - 1-to-4 family residential 1 48 Multi-family residential - - HELOC - - Total 6 $ 774 Twelve months ended December 31, 2015 Number Recorded of loans investment (dollars in thousands) Extended payment terms: Commercial and industrial - - Construction - - Commercial real estate - Loans to individuals and overdrafts - - Multi-family residential 1 431 1-to-4 family residential - - HELOC - Total 1 431 Total 1 $ 431 |
Financing Receivable Credit Quality Indicators [Table Text Block] | Total Loans: December 31, 2016 Commercial Credit Exposure By Commercial Commercial Internally and real Multi-family Assigned Grade industrial Construction estate residential (dollars in thousands) Superior $ 435 $ - $ - $ - Very good 326 245 460 - Good 13,632 4,506 36,501 12,139 Acceptable 35,720 12,922 152,608 29,873 Acceptable with care 37,351 82,771 81,231 13,467 Special mention 2,905 173 4,868 - Substandard 309 294 6,055 640 Doubtful - - - - Loss - - - - $ 90,678 $ 100,911 $ 281,723 $ 56,119 Consumer Credit Exposure By Internally 1-to-4 family Assigned Grade residential HELOC Pass $ 92,115 $ 39,554 Special mention 3,015 439 Substandard 2,848 1,165 $ 97,978 $ 41,158 Consumer Credit Exposure Based Loans to On Payment individuals & Activity overdrafts Pass $ 9,820 Non-pass 7 $ 9,827 Total Loans: December 31, 2015 Commercial Credit Exposure By Commercial Commercial Internally and real Multi-family Assigned Grade industrial Construction estate residential (dollars in thousands) Superior $ 730 $ - $ - $ - Very good 1,314 355 114 - Good 8,241 5,827 26,538 Acceptable 25,014 19,059 144,717 32,355 Acceptable with care 37,980 79,817 74,169 7,685 Special mention 58 2,015 7,657 - Substandard 154 615 6,064 698 Doubtful - - - - Loss - - - - $ 73,491 $ 107,688 $ 259,259 $ 40,738 Consumer Credit Exposure By Internally 1-to-4 family Assigned Grade residential HELOC Pass $ 80,596 $ 40,770 Special mention 3,678 448 Substandard 3,681 784 $ 87,955 $ 42,002 Consumer Credit Exposure Based Loans to On Payment individuals & Activity overdrafts Pass $ 7,236 Non-pass 19 $ 7,255 |
Schedule of Fair Values of Expected Cash Flows and Loan Related Payments to Acquired Company at the Time of Merger [Table Text Block] | For PCI loans acquired from Legacy Select, the contractually required payments including principal and interest, cash flows expected to be collected and fair values as of the closing date of the merger and December 31, 2015 and 2016 were: December 31, December 31, July 25, 2016 2015 2014 (Dollars in thousands) Contractually required payments $ 21,761 $ 25,341 $ 34,329 Nonaccretable difference 1,415 1,411 1,402 Cash flows expected to be collected 20,346 23,930 32,927 Accretable yield 2,626 2,822 4,360 Fair value $ 17,720 $ 21,108 $ 28,567 |
Schedule Of Certain Loans Acquired In Transfer Accounted For As Debt Securities Accretable Yield [Table Text Block] | The following table documents changes to the amount of the PCI accretable yield as of December 31, 2015 and 2016 (dollars in thousands): 2016 2015 (dollars in thousands) Accretable yield, beginning of period $ 2,822 $ 3,762 Accretion (1,055) (1,220) Reclassification from nonaccretable difference 261 163 Other changes, net 598 117 Accretable yield, end of period $ 2,626 $ 2,822 |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | The following tables present a roll forward of the Company’s allowance for loan losses by loan segment for the twelve month periods ended December 31, 2016, 2015 and 2014, respectively (in thousands): 2016 Commercial 1 to 4 Loans to Multi- and Commercial family individuals & family Allowance for loan losses industrial Construction real estate residential HELOC overdrafts residential Total Loans excluding PCI Balance, beginning of period 01/01/2016 $ 922 $ 1,386 $ 3,005 $ 605 $ 564 $ 137 $ 393 $ 7,012 Provision for loan losses 449 (105) 481 (51) 217 250 235 1,476 Loans charged-off (182) (2) (189) (7) (205) (90) - (675) Recoveries 22 22 151 299 35 20 - 549 Total $ 1,211 $ 1,301 $ 3,448 $ 846 $ 611 $ 317 $ 628 $ 8,362 PCI Loans Balance, beginning of period 01/01/2016 $ - $ - $ - $ - $ 9 $ - $ - $ 9 Provision for loan losses 37 - - - 3 - - 40 Loans charged-off - - - - - - - - Recoveries - - - - - - - - Total $ 37 $ - $ - $ - $ 12 $ - $ - $ 49 Total Loans Balance, beginning of period 01/01/2016 $ 922 $ 1,386 $ 3,005 $ 605 $ 573 $ 137 $ 393 $ 7,021 Provision for loan losses 486 (105) 481 (51) 220 250 235 1,516 Loans charged-off (182) (2) (189) (7) (205) (90) - (675) Recoveries 22 22 151 299 35 20 - 549 Balance, end of period 12/31/2016 $ 1,248 $ 1,301 $ 3,448 $ 846 $ 623 $ 317 $ 628 $ 8,411 Ending Balance: individually evaluated for impairment $ - $ - $ 80 $ 17 $ 19 $ 1 $ - $ 117 Ending Balance: collectively evaluated for impairment $ 1,248 $ 1,301 $ 3,368 $ 829 $ 604 $ 316 $ 628 $ 8,294 Loans: Ending Balance: collectively evaluated for impairment $ 90,632 $ 100,680 $ 274,863 $ 96,682 $ 40,083 $ 8,687 $ 55,773 $ 667,400 Ending Balance: individually evaluated for impairment $ 46 $ 231 $ 6,860 $ 1,296 $ 1,075 $ 1,140 $ 346 $ 10,994 Ending Balance $ 90,678 $ 100,911 $ 281,723 $ 97,978 $ 41,158 $ 9,827 $ 56,119 $ 678,394 Also included in this table are $ 17.7 2015 Commercial 1 to 4 Loans to Multi- and Commercial family individuals & family Allowance for loan losses industrial Construction real estate residential HELOC overdrafts residential Total Loans excluding PCI Balance, beginning of period 01/01/2015 $ 803 $ 1,103 $ 2,914 $ 630 $ 930 $ 185 $ 279 $ 6,844 Provision for loan losses 212 333 670 (57) (272) (18) 13 881 Loans charged-off (141) (79) (663) (70) (115) (54) (5) (1,127) Recoveries 48 29 84 102 21 24 106 414 Total $ 922 $ 1,386 $ 3,005 $ 605 $ 564 $ 137 $ 393 $ 7,012 PCI Loans Balance, beginning of period 01/01/2015 $ - $ - $ - $ - $ - $ - $ - $ - Provision for loan losses - - - - 9 - - 9 Loans charged-off - - - - - - - - Recoveries - - - - - - - - Total $ - $ - $ - $ - $ 9 $ - $ - $ 9 Total Loans Balance, beginning of period 01/01/2015 $ 803 $ 1,103 $ 2,914 $ 630 $ 930 $ 185 $ 279 $ 6,844 Provision for loan losses 212 333 670 (57) (263) (18) 13 890 Loans charged-off (141) (79) (663) (70) (115) (54) (5) (1,127) Recoveries 48 29 84 102 21 24 106 414 Balance, end of period 12/31/2015 $ 922 $ 1,386 $ 3,005 $ 605 $ 573 $ 137 $ 393 $ 7,021 Ending Balance: individually evaluated for impairment $ 2 $ - $ 73 $ 15 $ - $ 4 $ - $ 94 Ending Balance: collectively evaluated for impairment $ 920 $ 1,386 $ 2,932 $ 590 $ 573 $ 133 $ 393 $ 6,927 Loans: Ending Balance: collectively evaluated for impairment $ 73,373 $ 107,073 $ 253,005 $ 85,604 $ 41,303 $ 7,251 $ 40,738 $ 608,397 Ending Balance: individually evaluated for impairment $ 118 $ 615 $ 6,254 $ 2,351 $ 699 $ 4 $ - $ 10,041 Ending Balance $ 73,491 $ 107,688 $ 259,259 $ 87,955 $ 42,002 $ 7,255 $ 40,738 $ 618,388 Also included in this table are $ 21.1 2014 Commercial 1 to 4 Loans to Multi- and Commercial family individuals & family Allowance for loan losses industrial Construction real estate residential HELOC overdrafts residential Total Loans excluding PCI Balance, beginning of period 01/01/2014 $ 245 $ 565 $ 4,599 $ 826 $ 680 $ 65 $ 74 $ 7,054 Provision for loan losses 589 479 (1,899) (262) 499 195 205 (194) Loans charged-off (63) (4) (150) (26) (327) (98) - (668) Recoveries 32 63 364 92 78 23 - 652 Total $ 803 $ 1,103 $ 2,914 $ 630 $ 930 $ 185 $ 279 $ 6,844 PCI Loans Balance, beginning of period 01/01/2014 $ - $ - $ - $ - $ - $ - $ - $ - Provision for loan losses - - - - - - - - Loans charged-off - - - - - - - - Recoveries - - - - - - - - Total $ - $ - $ - $ - $ - $ - $ - $ - Total Loans Balance, beginning of period 01/01/2014 $ 245 $ 565 $ 4,599 $ 826 $ 680 $ 65 $ 74 $ 7,054 Provision for loan losses 589 479 (1,899) (262) 499 195 205 (194) Loans charged-off (63) (4) (150) (26) (327) (98) - (668) Recoveries 32 63 364 92 78 23 - 652 Balance, end of period 12/31/2014 $ 803 $ 1,103 $ 2,914 $ 630 $ 930 $ 185 $ 279 $ 6,844 Ending Balance: individually evaluated for impairment $ 64 $ 80 $ 419 $ 74 $ 50 $ - $ - $ 687 Ending Balance: collectively evaluated for impairment $ 739 $ 1,023 $ 2,495 $ 556 $ 880 $ 185 $ 279 $ 6,157 Loans: Ending Balance: collectively evaluated for impairment $ 57,474 $ 82,126 $ 226,100 $ 88,152 $ 37,172 $ 6,017 $ 39,992 $ 537,033 Ending Balance: individually evaluated for impairment $ 743 $ 1,467 $ 7,530 $ 2,751 $ 921 $ - $ 2,232 $ 15,644 Ending Balance $ 58,217 $ 83,593 $ 233,630 $ 90,903 $ 38,093 $ 6,017 $ 42,224 $ 552,677 |
OTHER REAL ESTATE OWNED (Tables
OTHER REAL ESTATE OWNED (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Banking and Thrift [Abstract] | |
Schedule Of Real Estate Owned Properties [Table Text Block] | The following table explains changes in other real estate owned (“OREO”) during the years ended December 31, 2016 and 2015 (dollars in thousands): December 31, December 31, 2016 2015 (Dollars in thousands) Beginning balance January 1 $ 1,401 $ 1,585 Sales (2,062) (635) Write-downs and loss on sales (158) (139) Transfers 1,418 590 Ending balance $ 599 $ 1,401 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | The following is a summary of premises and equipment at December 31, 2016 and 2015: 2016 2015 (dollars in thousands) Land $ 5,054 $ 5,520 Buildings 14,519 14,841 Furniture and equipment 5,846 5,249 Leasehold improvements 144 144 Construction in progress - - 25,563 25,754 Less accumulated depreciation 7,632 6,676 Total $ 17,931 $ 19,078 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | The Company has operating leases for its corporate offices and branches that expire at various times through 2027. Total Lease Payments (dollars in thousands) 2017 $ 338 2018 358 2019 369 2020 350 2021 341 Years thereafter 591 $ 2,347 |
GOODWILL AND OTHER INTANGIBLE36
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | The table below summarizes the changes in carrying amounts of goodwill and other intangibles (core deposit intangibles) for the periods presented. Core Deposit Intangible Accumulated Goodwill Gross Amortization Net (In thousands) Balance at January 1, 2014 $ - $ 1,269 $ (1,087) $ 182 Goodwill and core deposit intangible resulting from merger 6,931 1,790 - 1,790 Amortization expense - - (347) (347) Balance at December 31, 2014 6,931 3,059 (1,434) 1,625 Core deposit intangible resulting from branch acquisition - 160 - 160 Amortization expense - - (544) (544) Balance at December 31, 2015 6,931 3,219 (1,978) 1,241 Amortization expense - - (431) (431) Balance at December 31, 2016 $ 6,931 $ 3,219 $ (2,409) $ 810 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The table below summarizes the remaining core deposit intangible amortization (dollars in thousands): 2017 $ 339 2018 246 2019 154 2020 61 2021 9 Thereafter 1 $ 810 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deposits [Abstract] | |
Schedule Of Maturities Of Time Deposits [Table Text Block] | The scheduled maturities of time deposits at December 31, 2016 are as follows: Total Time Deposits (dollars in thousands) 2017 $ 246,828 2018 24,114 2019 9,040 2020 10,576 2021 12,935 Thereafter - $ 303,493 |
REPURCHASE AGREEMENTS (Tables)
REPURCHASE AGREEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Banking and Thrift [Abstract] | |
Remaining Contractual Maturity Of The Securities Sold Under Agreements To Repurchase By Class Of Collateral Pledged [Table Text Block] | The remaining contractual maturity of the securities sold under agreements to repurchase by class of collateral pledged included in short-term borrowings as of December 31, 2016 and 2015 is presented in the following tables. December 31, 2016 Remaining Contractual Maturity of the Agreements Overnight and Up to 30 30-90 Greater than (Dollars in thousands) continuous Days Days 90 Days Total Repurchase agreements U.S. Government agencies-GSE’s $ 5,568 $ - $ - $ - $ 5,568 Mortgage-backed Securities-GSE’s 6,496 8 - - - 6,496 Total borrowings $ 12,064 $ - $ - $ - $ 12,064 Gross amount of recognized liabilities for repurchase agreements $ 12,003 December 31, 2015 Remaining Contractual Maturity of the Agreements Overnight and Up to 30 30-90 Greater than (Dollars in thousands) continuous Days Days 90 Days Total Repurchase agreements U.S. Government agencies-GSE’s $ 4,206 $ - $ - $ - $ 4,206 Mortgage-backed Securities-GSE’s 7,943 - - - 7,943 Total borrowings $ 12,149 $ - $ - $ - $ 12,149 Gross amount of recognized liabilities for repurchase agreements $ 12,146 |
SHORT-TERM AND LONG-TERM DEBT (
SHORT-TERM AND LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Underlying Assets of Repurchase Agreements when Amount of Repurchase Agreements Exceeds 10 Percent of Assets [Table Text Block] | The following table presents certain information for securities sold under agreements to repurchase: 2016 2015 (Dollars in thousands) Balance at December 31 $ 12,003 $ 12,149 Weighted average interest rate at December 31 0.32 % 0.34 % Maximum amount outstanding at any month-end during the year $ 12,003 $ 13,405 Average daily balance outstanding during the year $ 9,973 $ 13,337 Average annual interest rate paid during the year 0.30 % 0.31 % |
Schedule of Long-term Debt Instruments [Table Text Block] | At December 31, 2016, the Company had $ 35.7 87,000 Date Amount Rate Maturity (dollars in thousands) Advance type: Fixed rate credit $ 15,000 0.63 % 1/27/2017 Fixed rate credit 5,000 0.61 % 1/30/2017 Convertible 5,087 4.63 % 6/28/2017 Fixed rate credit 10,000 1.38 % 7/30/2018 Principal Reducing 667 1.09 % 8/13/2018 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | The significant components of the provision for income taxes for the years ended December 31, 2016, 2015 and 2014 are as follows: 2016 2015 2014 (dollars in thousands) Current tax provision: Federal $ 2,998 $ 2,094 $ 1,067 State 498 354 240 Total current tax provision 3,496 2,448 1,307 Deferred tax provision: Federal 52 752 123 State 99 218 7 Total deferred tax provision 151 970 130 Net income tax provision $ 3,647 $ 3,418 $ 1,437 |
Federal Income Tax Note [Table Text Block] | The difference between the provision for income taxes and the amounts computed by applying the statutory federal income tax rate of 34 2016 2015 2014 (dollars in thousands) Income tax at federal statutory rate $ 3,536 $ 3,390 $ 1,290 Increase (decrease) resulting from: State income taxes, net of federal tax effect 394 377 164 Tax-exempt interest income (151) (172) (116) Income from life insurance (201) (213) (92) Incentive stock option expense 24 13 18 Merger expenses - - 151 Other permanent differences 45 23 22 Provision for income taxes $ 3,647 $ 3,418 $ 1,437 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of deferred taxes at December 31, 2016 and 2015 are as follows: 2016 2015 (dollars in thousands) Deferred tax assets relating to: Allowance for loan losses $ 3,026 $ 2,572 Deferred compensation 294 305 Supplemental executive retirement plan 17 58 Acquisition accounting 986 1,624 Core deposit intangible 165 61 Write-downs on foreclosed real estate 53 92 Other 184 157 Total deferred tax assets 4,725 4,869 Deferred tax liabilities relating to: Premises and equipment (1,287) (1,285) Deferred loan fees/costs (70) (57) Unrealized gains on available-for-sale securities (204) (292) Other (32) (39) Total deferred tax liabilities (1,593) (1,673) Net recorded deferred tax asset, included in other assets $ 3,132 $ 3,196 |
ACCUMULATED OTHER COMPREHENSI41
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table presents changes in accumulated other comprehensive income for the years ended December 31, 2016 and 2015. Year Ended December 31, 2016 2015 (In thousands) Beginning balance $ 490 $ 809 Unrealized (gain) loss on investment securities available for sale (185) (176) Tax effect 67 65 Other comprehensive income (loss) before reclassification (118) (111) Amounts reclassified from accumulated comprehensive income: Realized (gain) loss on investment securities included in net income (22) (332) Tax effect 8 124 Total reclassifications net of tax (14) (208) Net current period other comprehensive income (loss) (132) (319) Ending balance $ 358 $ 490 |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Regulatory Capital Requirements [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | As the following tables indicate, at December 31, 2016 and 2015, the Company and its Bank subsidiary both exceeded minimum regulatory capital requirements as specified below. Minimum for capital Actual adequacy purposes The Company: Amount Ratio Amount Ratio December 31, 2016: (dollars in thousands) Total Capital (to Risk-Weighted Assets) $ 116,909 15.12 % $ 61,876 8.00 % Tier 1 Capital (to Risk-Weighted Assets) 108,498 14.03 % 46,407 6.00 % Common Equity Tier 1 (to Risk-Weighted Assets) 96,498 12.48 % 34,805 4.50 % Tier 1 Capital (to Average Assets) 108,498 12.99 % 33,422 4.00 % Minimum for capital Actual adequacy purposes The Company: Amount Ratio Amount Ratio December 31, 2015: (dollars in thousands) Total Capital (to Risk-Weighted Assets) $ 115,805 16.01 % $ 57,852 8.00 % Tier 1 Capital (to Risk-Weighted Assets) 108,784 15.04 % 43,389 6.00 % Common Equity Tier 1 (to Risk-Weighted Assets) 89,139 12.33 % 32,542 4.50 % Tier 1 Capital (to Average Assets) 108,784 13.81 % 31,505 4.00 % Select Bank & Trust Company’s actual capital amounts and ratios are presented in the table below as of December 31, 2016 and 2015: Minimum to be well Minimum for capital capitalized under prompt Actual adequacy purposes corrective action provisions The Bank: Amount Ratio Amount Ratio Amount Ratio December 31, 2016: (dollars in thousands) Total Capital (to Risk-Weighted Assets) $ 112,375 14.53 % $ 61,876 8.00 % 77,346 10.00 % Tier 1 Capital (to Risk-Weighted Assets) 103,964 13.44 % 46,407 6.00 % 61,876 8.00 % Common equity Tier 1 (to Risk-Weight Assets) 103,964 13.44 % 34,806 4.50 % 50,275 6.50 % Tier 1 Capital (to Average Assets) 103,964 12.44 % 33,422 4.00 % 41,777 5.00 % Minimum to be well Minimum for capital capitalized under prompt Actual adequacy purposes corrective action provisions The Bank: Amount Ratio Amount Ratio Amount Ratio December 31, 2015: (dollars in thousands) Total Capital (to Risk-Weighted Assets) $ 111,773 15.47 % $ 57,809 8.00 % 72,261 10.00 % Tier 1 Capital (to Risk-Weighted Assets) 104,752 14.50 % 43,357 6.00 % 57,809 8.00 % Common equity Tier 1 (to Risk-Weight Assets) 104,752 14.50 % 32,517 4.50 % 46,970 6.50 % Tier 1 Capital (to Average Assets) 104,752 13.31 % 31,483 4.00 % 39,354 5.00 % |
OFF-BALANCE SHEET RISK (Tables)
OFF-BALANCE SHEET RISK (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Off Balance Sheet Risk [Abstract] | |
Off Balance Sheet Credit Risk [Table Text Block] | A summary of the contract amount of the Company’s exposure to off-balance sheet credit risk as of December 31, 2016 is as follows: Financial instruments whose contract amounts represent credit risk: (In thousands) Undisbursed commitments $ 141,176 Letters of credit 1,969 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | The following tables summarize quantitative disclosures about the fair value measurement for each category of assets carried at fair value on a recurring basis as of December 31, 2016 and December 31, 2015 (dollars in thousands): Quoted Prices in Significant Investment securities Active Markets Other Significant available for sale for Identical Observable Unobservable December 31, 2016 Fair value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) U.S. government agencies GSE's $ 14,159 $ - $ 14,159 $ - Mortgage-backed securities - GSE’s 32,363 - 32,363 - Municipal bonds 15,735 - 15,735 - Total $ 62,257 $ - $ 62,257 $ - Quoted Prices in Significant Investment securities Active Markets Other Significant available for sale for Identical Observable Unobservable December 31, 2015 Fair value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) U.S. government agencies GSE's $ 21,226 $ - $ 21,226 $ - Mortgage-backed securities - GSE’s 39,536 - 39,536 - Municipal bonds 19,947 - 19,947 - Total $ 80,709 $ - $ 80,709 $ - |
Fair Value Measurements, Nonrecurring [Table Text Block] | The following tables summarize quantitative disclosures about the fair value measurement for each category of assets carried at fair value on a nonrecurring basis as of December 31, 2016 and December 31, 2015 (dollars in thousands): Quoted Prices in Significant Active Markets Other Significant Asset Category for Identical Observable Unobservable December 31, 2016 Fair value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Impaired loans $ 5,805 $ - $ - $ 5,805 Assets held for sale 846 - - 846 Foreclosed real estate 599 - - 599 Total $ 7,250 $ - $ - $ 7,250 Quoted Prices in Significant Active Markets Other Significant Asset Category for Identical Observable Unobservable December 31, 2015 Fair value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Impaired loans $ 6,635 $ - $ - $ 6,635 Assets held for sale 846 - - 846 Foreclosed real estate 1,401 - - 1,401 Total $ 8,882 $ - $ - $ 8,882 |
Schedule of Fair Value, Off-balance Sheet Risks [Table Text Block] | December 31, 2016 Carrying Estimated Amount Fair Value Level 1 Level 2 Level 3 (dollars in thousands) Financial assets: Cash and due from banks $ 14,372 $ 14,372 $ 14,372 $ - $ - Certificates of deposits 1,000 1,000 1,000 - - Interest-earning deposits in other banks 40,342 40,342 40,342 - - Investment securities available for sale 62,257 62,257 - 62,257 - Loans, net 668,784 671,208 - - 671,208 Accrued interest receivable 2,768 2,768 - - 2,768 Stock in the FHLB 2,251 2,251 - - 2,251 Other non-marketable securities 703 703 - - 703 Assets held for sale 846 846 - - 846 Financial liabilities: Deposits $ 679,661 $ 678,328 $ - $ 678,328 $ - Short-term debt 37,090 37,177 - 37,177 - Long-term debt 23,039 17,649 - 17,649 - Accrued interest payable 221 221 - 221 - December 31, 2015 Carrying Estimated Amount Fair Value Level 1 Level 2 Level 3 (dollars in thousands) Financial assets: Cash and due from banks $ 12,567 $ 12,567 $ 12,567 $ - $ - Certificates of deposits 1,000 1,000 1,000 - - Interest-earning deposits in other banks 49,842 49,842 49,842 - - Investment securities available for sale 80,709 80,709 - 80,709 - Loans, net 610,377 615,754 - - 615,754 Accrued interest receivable 2,350 2,350 - - 2,350 Stock in the FHLB 2,112 2,112 - - 2,112 Other non-marketable securities 705 705 - - 705 Assets held for sale 846 846 - - 846 Financial liabilities: Deposits $ 651,161 $ 651,255 $ - $ 651,255 $ - Short-term debt 29,673 29,673 - 29,673 - Long-term debt 28,703 23,718 - 23,718 - Accrued interest payable 232 232 - 232 - |
EMPLOYEE AND DIRECTOR BENEFIT45
EMPLOYEE AND DIRECTOR BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | In 2014 the Company did not grant any stock options. For years when stock options were granted the estimated weighted average fair market value of each option awarded, using the Black-Scholes option pricing model, together with the assumptions used in estimating those weighted average fair values, are displayed below: 2016 2015 2014 Estimated fair value of options granted $ 4.17 $ 3.74 $ - Assumptions in estimating average option values: Risk-free interest rate 1.59 % 1.87 % - % Dividend yield - % - % - % Volatility 46.09 % 48.13 % - % Expected life (in years) 8.00 8.00 - |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | A summary of the Company’s option plans as of and for the year ended December 31, 2016 is as follows: Outstanding Options Exercisable Options Shares Weighted Weighted Available Average Average for Future Number Exercise Number Exercise Grants Outstanding Price Outstanding Price At December 31, 2015 831,102 266,436 $ 7.04 218,720 $ 7.11 Options authorized - - - - - Options acquired - - - - - Options granted/vested (36,000) 36,000 8.05 12,800 3.39 Options exercised 62,402 (62,402) 4.51 (62,402) 4.51 Options expired 16,221 (34,800) 16.22 (34,800) 16.22 Options forfeited 4,252 (4,252) 4.81 (4,252) $ 4.81 At December 31, 2016 877,977 200,982 $ 6.46 130,066 $ 5.92 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | Information regarding the stock options outstanding at December 31, 2016 is summarized below: Number Number of options of options Range of Exercise Prices outstanding exercisable $2.25 - $7.07 144,982 110,066 $7.08 - $10.69 46,000 10,000 $10.70 - $16.22 10,000 10,000 Outstanding at end of year 200,982 130,066 |
Schedule of Nonvested Share Activity [Table Text Block] | A summary of the status of the Company’s non-vested options as of December 31, 2016 and changes during the year ended December 31, 2016, is presented below: Weighted-Average Grant Date Non-vested Options Options Fair Value Non-vested at December 31, 2015 47,715 $ 3.62 Granted 36,000 4.17 Vested (12,800) 3.39 Expired - - Forfeited - - Non-vested at December 31, 2016 70,915 3.94 |
PARENT COMPANY FINANCIAL DATA (
PARENT COMPANY FINANCIAL DATA (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheet [Table Text Block] | Condensed Balance Sheets December 31, 2016 and 2015 (dollars in thousands) 2016 2015 Assets Cash balances with Select Bank & Trust $ 314 $ 126 Investment in Select Bank & Trust 111,739 112,670 Investment in New Century Statutory Trust I 551 540 Other assets 4,239 3,931 Total Assets $ 116,843 $ 117,267 Liabilities and Shareholders’ Equity Junior subordinated debentures $ 12,372 $ 12,372 Accrued interest and other liabilities 198 193 Total Liabilities 12,570 12,565 Shareholders’ equity: Preferred stock - 7,645 Common stock 11,645 11,583 Additional paid-in capital 69,597 69,061 Retained earnings 22,673 15,923 Common stock issued to deferred compensation trust (2,340) (2,139) Directors’ Deferred Compensation Plan Rabbi Trust 2,340 2,139 Accumulated other comprehensive income 358 490 Total Shareholders’ Equity 104,273 104,702 Total Liabilities and Shareholders’ Equity $ 116,843 $ 117,267 |
Condensed Income Statement [Table Text Block] | Condensed Statements of Operations Years Ended December 31, 2016, 2015 and 2014 (dollars in thousands) 2016 2015 2014 Equity in earnings of subsidiaries $ (788) $ 6,836 $ 2,715 Dividends from subsidiaries 8,195 257 - Operating expense (793) (814) (526) Income tax benefit 140 274 168 Net income $ 6,754 $ 6,553 $ 2,357 |
Condensed Cash Flow Statement [Table Text Block] | Condensed Statements of Cash Flows Years Ended December 31, 2016, 2015 and 2014 (dollars in thousands) 2016 2015 2014 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 6,754 $ 6,553 $ 2,357 Equity in undistributed income of subsidiaries 788 (6,836) (2,715) Stock based compensation 71 39 91 Net change in other assets (308) (3,375) (272) Net change in other liabilities 5 11 25 Net cash provided by operating activities 7,310 (3,608) (514) CASH FLOW FROM INVESTING ACTIVITIES Cash received from acquisition - - 2,056 Redemption of preferred stock (7,645) - - Net cash used in investing activities (7,645) - 2,056 CASH FLOW FROM FINANCING ACTIVITIES Proceeds from stock option exercises 527 821 218 Dividends (4) (77) (38) Net cash provided by financing activities 523 744 180 Net increase (decrease) in cash and cash equivalents 188 (2,864) 1,722 Cash and cash equivalents at beginning of year 126 2,990 1,268 Cash and cash equivalents, end of year $ 314 $ 126 $ 2,990 |
SUMMARY OF SIGNIFICANT ACCOUN47
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Weighted Average Number Of Shares [Line Items] | |||
Weighted average number of common shares used in computing basic net income per share | 11,610,705 | 11,502,800 | 8,870,114 |
Effect of dilutive stock options | 44,406 | 65,011 | 104,270 |
Weighted average number of common shares and dilutive potential common shares used in computing diluted net income per share | 11,655,111 | 11,567,811 | 8,974,384 |
SUMMARY OF SIGNIFICANT ACCOUN48
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 88,000 | 97,800 | 75,783 |
Building [Member] | |||
Accounting Policies [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 40 years | ||
Furniture and Fixtures [Member] | Maximum [Member] | |||
Accounting Policies [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||
Furniture and Fixtures [Member] | Minimum [Member] | |||
Accounting Policies [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 3 years |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jul. 25, 2014 | Dec. 31, 2013 |
Assets | |||||
Cash and cash equivalents | $ 15,406 | ||||
Investment securities | 27,980 | ||||
Loans | $ 677,195 | $ 617,398 | $ 552,677 | 217,590 | |
Less: allowance for loan losses | (8,411) | (7,021) | 0 | ||
Premises and equipment | 6,712 | ||||
Accrued interest receivable | 732 | ||||
Other real estate owned | 71 | ||||
Bank owned life insurance | 22,183 | 21,592 | 2,234 | ||
Goodwill | 6,931 | 6,931 | 6,931 | 0 | $ 0 |
Core deposit intangible | 810 | 1,241 | 1,625 | 1,790 | $ 182 |
Other assets | 4,568 | ||||
Total assets acquired | 0 | 9,975 | 277,083 | 277,083 | |
Deposits: | |||||
Noninterest-bearing Deposit Liabilities | 42,507 | ||||
Interest-bearing Deposit Liabilities | 179,700 | ||||
Total deposits | 679,661 | 651,161 | 222,207 | ||
Borrowings | 23,106 | ||||
Other liabilities | 565 | ||||
Total liabilities assumed | 0 | 31,204 | 245,878 | 245,878 | |
Fair value of net assets assumed | 31,205 | ||||
Goodwill recorded for Legacy Select | $ 0 | $ 0 | $ 6,931 | 6,931 | |
Fair Value Adjustments [Member] | |||||
Assets | |||||
Cash and cash equivalents | 0 | ||||
Investment securities | (284) | ||||
Loans | (5,541) | ||||
Less: allowance for loan losses | 3,389 | ||||
Premises and equipment | 332 | ||||
Accrued interest receivable | (132) | ||||
Other real estate owned | 0 | ||||
Bank owned life insurance | 0 | ||||
Goodwill | (1,488) | ||||
Core deposit intangible | 1,556 | ||||
Other assets | 2,061 | ||||
Total assets acquired | (107) | ||||
Deposits: | |||||
Noninterest-bearing Deposit Liabilities | 0 | ||||
Interest-bearing Deposit Liabilities | 2,175 | ||||
Total deposits | 2,175 | ||||
Borrowings | 908 | ||||
Other liabilities | 0 | ||||
Total liabilities assumed | 3,083 | ||||
Legacy Select [Member] | |||||
Assets | |||||
Cash and cash equivalents | 15,406 | ||||
Investment securities | 28,264 | ||||
Loans | 223,131 | ||||
Less: allowance for loan losses | (3,389) | ||||
Premises and equipment | 6,380 | ||||
Accrued interest receivable | 864 | ||||
Other real estate owned | 71 | ||||
Bank owned life insurance | 2,234 | ||||
Goodwill | 1,488 | ||||
Core deposit intangible | 234 | ||||
Other assets | 2,507 | ||||
Total assets acquired | 277,190 | ||||
Deposits: | |||||
Noninterest-bearing Deposit Liabilities | 42,507 | ||||
Interest-bearing Deposit Liabilities | 177,525 | ||||
Total deposits | 220,032 | ||||
Borrowings | 22,198 | ||||
Other liabilities | 565 | ||||
Total liabilities assumed | 242,795 | ||||
Employee Stock Option [Member] | |||||
Deposits: | |||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | 634 | ||||
Common Stock [Member] | |||||
Deposits: | |||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | 29,857 | ||||
Preferred Stock [Member] | |||||
Deposits: | |||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | $ 7,645 |
BUSINESS COMBINATIONS (Details
BUSINESS COMBINATIONS (Details 1) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Jul. 25, 2014 |
Business Acquisition [Line Items] | |||
Contractually required payments | $ 21,761 | $ 25,341 | $ 34,329 |
Nonaccretable difference | 1,415 | 1,411 | 1,402 |
Cash flows expected to be collected | 20,346 | 23,930 | 32,927 |
Accretable yield | 2,626 | 2,822 | 4,360 |
Fair value at acquisition date | $ 17,720 | $ 21,108 | $ 28,567 |
BUSINESS COMBINATIONS (Detail51
BUSINESS COMBINATIONS (Details Textual) - USD ($) | Dec. 11, 2015 | Jul. 25, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance | 200,982 | 266,436 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 130,066 | 218,720 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 5 years 3 months | 3 years 5 months 12 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 724,000 | $ 558,000 | |||
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Acquired During Period, at Acquisition, at Fair Value | $ 28,567,000 | $ 17,720,000 | 21,108,000 | ||
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Exercises In Period | 62,402 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 277,083,000 | $ 0 | 9,975,000 | $ 277,083,000 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ 245,878,000 | 0 | 31,204,000 | 245,878,000 | |
Cash Acquired from Acquisition | $ 0 | $ 21,229,000 | $ 15,406,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 4,252 | ||||
Common Stock, Par or Stated Value Per Share | $ 1 | $ 1 | |||
Yadkin Bank [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | $ 10,000,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 31,200,000 | ||||
Cash Acquired from Acquisition | $ 21,200,000 | ||||
Common Stock [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination Shares Issued Ratio | 1.8264 | ||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | $ 31,200,000 | ||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 2,418,347 | 4,416,500 | |||
Business Acquisition, Share Price | $ 6.76 | ||||
Common Stock, Par or Stated Value Per Share | $ 12.35 | ||||
Legacy Select [Member] | |||||
Business Acquisition [Line Items] | |||||
Share Based Compensation Arrangement By Acquired Share Based Payment Award Options Converted Number | 202,842 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance | 370,278 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 76,994 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 3 years 6 months 22 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 399,000 | ||||
Business Combination, Acquisition Related Costs | $ 1,900,000 | ||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Exercises In Period | 305,775 | ||||
Assets Value of Merger | $ 277,100,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 277,190,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ 242,795,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 3,652 | ||||
Purchased Credit Impaired Loans [Member] | |||||
Business Acquisition [Line Items] | |||||
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Acquired During Period, at Acquisition, at Fair Value | $ 28,600,000 | ||||
Performing Loans [Member] | |||||
Business Acquisition [Line Items] | |||||
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Acquired During Period, at Acquisition, at Fair Value | $ 189,000,000 |
INVESTMENT SECURITIES (Details)
INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Securities available for sale: | ||
Amortized cost | $ 61,695 | $ 79,928 |
Gross unrealized gains | 689 | 1,041 |
Gross unrealized Losses | (127) | (260) |
Fair value | 62,257 | 80,709 |
U.S. government agencies - GSE’s [Member] | ||
Securities available for sale: | ||
Amortized cost | 14,086 | 21,321 |
Gross unrealized gains | 98 | 101 |
Gross unrealized Losses | (25) | (196) |
Fair value | 14,159 | 21,226 |
Mortgage-backed securities - GSE’s [Member] | ||
Securities available for sale: | ||
Amortized cost | 32,082 | 39,123 |
Gross unrealized gains | 382 | 475 |
Gross unrealized Losses | (101) | (62) |
Fair value | 32,363 | 39,536 |
Municipal bonds [Member] | ||
Securities available for sale: | ||
Amortized cost | 15,527 | 19,484 |
Gross unrealized gains | 209 | 465 |
Gross unrealized Losses | (1) | (2) |
Fair value | $ 15,735 | $ 19,947 |
INVESTMENT SECURITIES (Details
INVESTMENT SECURITIES (Details 1) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
U.S. government agencies - GSE’s [Member] | ||
Securities available for sale: | ||
Less Than 12 Months Fair value | $ 2,748 | $ 7,039 |
Less Than 12 Months Unrealized losses | (13) | (70) |
12 Months or More Fair value | 1,651 | 7,615 |
12 Months or More Unrealized losses | (12) | (126) |
Total Fair value | 4,399 | 14,654 |
Total Unrealized losses | (25) | (196) |
Mortgage-backed securities - GSE’s [Member] | ||
Securities available for sale: | ||
Less Than 12 Months Fair value | 8,778 | 7,916 |
Less Than 12 Months Unrealized losses | (101) | (62) |
12 Months or More Fair value | 0 | 0 |
12 Months or More Unrealized losses | 0 | 0 |
Total Fair value | 8,778 | 7,916 |
Total Unrealized losses | (101) | (62) |
Municipal bonds [Member] | ||
Securities available for sale: | ||
Less Than 12 Months Fair value | 110 | 111 |
Less Than 12 Months Unrealized losses | (1) | (2) |
12 Months or More Fair value | 0 | 0 |
12 Months or More Unrealized losses | 0 | 0 |
Total Fair value | 110 | 111 |
Total Unrealized losses | (1) | (2) |
Total temporarily impaired securities [Member] | ||
Securities available for sale: | ||
Less Than 12 Months Fair value | 11,636 | 15,066 |
Less Than 12 Months Unrealized losses | (115) | (134) |
12 Months or More Fair value | 1,651 | 7,615 |
12 Months or More Unrealized losses | (12) | (126) |
Total Fair value | 13,287 | 22,681 |
Total Unrealized losses | $ (127) | $ (260) |
INVESTMENT SECURITIES (Detail54
INVESTMENT SECURITIES (Details 2) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost, Due within one year | $ 3,735 | |
Fair Value, Due within one year | 3,747 | |
Amortized Cost, Due after one but within five years | 37,615 | |
Fair Value, Due after one but within five years | 37,929 | |
Amortized Cost, Due after five but within ten years | 10,695 | |
Fair Value, Due after five but within ten years | 10,792 | |
Amortized Cost, Due after ten years | 9,650 | |
Fair Value, Due after ten years | 9,789 | |
Available-for-sale Securities, Amortized Cost Total | 61,695 | $ 79,928 |
Available-for-sale Securities, Fair Value Total | 62,257 | 80,709 |
Us Government Agencies Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost, Due within one year | 2,011 | |
Fair Value, Due within one year | 2,013 | |
Amortized Cost, Due after one but within five years | 5,999 | |
Fair Value, Due after one but within five years | 6,016 | |
Amortized Cost, Due after five but within ten years | 4,174 | |
Fair Value, Due after five but within ten years | 4,226 | |
Amortized Cost, Due after ten years | 1,902 | |
Fair Value, Due after ten years | 1,904 | |
Available-for-sale Securities, Amortized Cost Total | 14,086 | 21,321 |
Available-for-sale Securities, Fair Value Total | 14,159 | 21,226 |
Mortgage-Backed Securities, Issued By Us Government Sponsored Enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost, Due within one year | 0 | |
Fair Value, Due within one year | 0 | |
Amortized Cost, Due after one but within five years | 29,291 | |
Fair Value, Due after one but within five years | 29,564 | |
Amortized Cost, Due after five but within ten years | 2,791 | |
Fair Value, Due after five but within ten years | 2,799 | |
Amortized Cost, Due after ten years | 0 | |
Fair Value, Due after ten years | 0 | |
Available-for-sale Securities, Amortized Cost Total | 32,082 | 39,123 |
Available-for-sale Securities, Fair Value Total | 32,363 | $ 39,536 |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost, Due within one year | 1,724 | |
Fair Value, Due within one year | 1,734 | |
Amortized Cost, Due after one but within five years | 2,325 | |
Fair Value, Due after one but within five years | 2,349 | |
Amortized Cost, Due after five but within ten years | 3,730 | |
Fair Value, Due after five but within ten years | 3,767 | |
Amortized Cost, Due after ten years | 7,748 | |
Fair Value, Due after ten years | 7,885 | |
Available-for-sale Securities, Amortized Cost Total | 15,527 | |
Available-for-sale Securities, Fair Value Total | $ 15,735 |
INVESTMENT SECURITIES (Detail55
INVESTMENT SECURITIES (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Gross Unrealized Gain (Loss) | $ 562,000 | $ 781,000 | |
Deferred Income Taxes and Other Liabilities, Noncurrent | 204,000 | 291,000 | |
US Government Securities, at Carrying Value | $ 34,300,000 | $ 45,200,000 | |
Trading Securities, Description | At December 31, 2016, the Company had two AFS securities with an unrealized loss for twelve or more consecutive months. The two U.S. government agency GSEs had unrealized losses for more than twelve months totaling $12,000 at December 31, 2016. Two U.S. government agency GSEs, one municipal and eight mortgage-backed GSEs had unrealized losses for less than twelve months totaling $115,000 at December 31, 2016. | At December 31, 2015, the Company had five AFS securities with an unrealized loss for twelve or more consecutive months. Five U.S. government agency GSEs had unrealized losses for more than twelve months totaling $126,000 at December 31, 2015. Six U.S. government agency GSEs, one municipal and seven mortgage-backed GSEs had unrealized losses for less than twelve months totaling $134,000 at December 31, 2015 | |
Gain (Loss) on Sale of Securities, Net | $ 22,000 | $ 332,000 | $ (46,000) |
Proceeds from Sale of Available-for-sale Securities, Total | $ 624,000 | $ 8,086,000 | $ 504,000 |
LOANS (Details)
LOANS (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jul. 25, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross loans | $ 678,394 | $ 618,388 | ||
Less deferred loan origination fees, net | (1,199) | (990) | ||
Total loans | 677,195 | 617,398 | $ 552,677 | $ 217,590 |
Allowance for loan losses | (8,411) | (7,021) | $ 0 | |
Total loans, net | $ 668,784 | $ 610,377 | ||
Less Percentage of deferred loan origination fees, net | (0.18%) | (0.16%) | ||
Percent of total | 100.00% | 100.00% | ||
1- to- 4 family residential Real estate loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 97,978 | $ 87,955 | 90,903 | |
Percent of total | 14.47% | 14.25% | ||
Commercial Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 281,723 | $ 259,259 | 233,630 | |
Percent of total | 41.60% | 41.99% | ||
Multi-family residential Real estate loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 56,119 | $ 40,738 | 42,224 | |
Percent of total | 8.29% | 6.60% | ||
Construction Real estate loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 100,911 | $ 107,688 | 83,593 | |
Percent of total | 14.90% | 17.44% | ||
Home Equity Line of Credit [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 41,158 | $ 42,002 | 38,093 | |
Percent of total | 6.08% | 6.80% | ||
Total real estate loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 577,889 | $ 537,642 | ||
Percent of total | 85.34% | 87.08% | ||
Commercial and industrial Other loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 90,678 | $ 73,491 | $ 58,217 | |
Percent of total | 13.39% | 11.90% | ||
Loans to individuals Other loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 9,756 | $ 7,207 | ||
Percent of total | 1.44% | 1.17% | ||
Overdrafts Other loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 71 | $ 48 | ||
Percent of total | 0.01% | 0.01% | ||
Total other loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 100,505 | $ 80,746 | ||
Percent of total | 14.84% | 13.08% |
LOANS (Details1)
LOANS (Details1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | ||
Balance at January 1 | $ 7,127 | $ 3,397 |
Exposure of directors/executive officers added | 0 | 0 |
Borrowings | 4,143 | 7,115 |
Directors/executive officers resigned or retired from board | 0 | (66) |
Loan repayments | (736) | (3,319) |
Balance at December 31 | $ 10,534 | $ 7,127 |
LOANS (Details 2)
LOANS (Details 2) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jul. 25, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-Accrual Loans | $ 5,805 | |||
Total Past DueTotal Past DueTotal Past Due | 8,798 | |||
Current | 669,596 | |||
Deferred loan (fees) cost, net | (1,199) | $ (990) | ||
Total Loans | 677,195 | 617,398 | $ 552,677 | $ 217,590 |
Total Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-Accrual Loans | 0 | 6,635 | ||
Total Past DueTotal Past DueTotal Past Due | 0 | 9,136 | ||
Current | 0 | 609,252 | ||
Deferred loan (fees) cost, net | (1,199) | (990) | ||
Total Loans | 617,398 | |||
Total Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past DueTotal Past DueTotal Past Due | 2,993 | 2,501 | ||
Deferred loan (fees) cost, net | 0 | 0 | ||
Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-Accrual Loans | 529 | 142 | ||
Total Past DueTotal Past DueTotal Past Due | 1,084 | 699 | ||
Current | 16,636 | 20,409 | ||
Total Loans | 17,720 | 21,108 | ||
Purchase Credit Impairment Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past DueTotal Past DueTotal Past Due | 555 | 557 | ||
Excluding Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-Accrual Loans | 5,276 | 6,493 | ||
Total Past DueTotal Past DueTotal Past Due | 7,714 | 8,437 | ||
Current | 652,960 | 588,843 | ||
Deferred loan (fees) cost, net | (1,199) | (990) | ||
Total Loans | 659,475 | 596,290 | ||
Excluding Purchase Credit Impairment Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past DueTotal Past DueTotal Past Due | 2,438 | 1,944 | ||
Deferred loan (fees) cost, net | 0 | 0 | ||
Commercial and Industrial [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Loans | 90,678 | 73,491 | 58,217 | |
Commercial and Industrial [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-Accrual Loans | 73 | 13 | ||
Total Past DueTotal Past DueTotal Past Due | 1,532 | 468 | ||
Current | 89,146 | 73,023 | ||
Total Loans | 90,678 | 73,491 | ||
Commercial and Industrial [Member] | Total Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past DueTotal Past DueTotal Past Due | 1,459 | 455 | ||
Commercial and Industrial [Member] | Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-Accrual Loans | 73 | 0 | ||
Total Past DueTotal Past DueTotal Past Due | 102 | 0 | ||
Current | 117 | 580 | ||
Total Loans | 219 | 580 | ||
Commercial and Industrial [Member] | Purchase Credit Impairment Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past DueTotal Past DueTotal Past Due | 29 | 0 | ||
Commercial and Industrial [Member] | Excluding Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-Accrual Loans | 0 | 13 | ||
Total Past DueTotal Past DueTotal Past Due | 1,430 | 468 | ||
Current | 89,029 | 72,443 | ||
Total Loans | 90,459 | 72,911 | ||
Commercial and Industrial [Member] | Excluding Purchase Credit Impairment Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past DueTotal Past DueTotal Past Due | 1,430 | 455 | ||
Construction Loans Real Estate [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Loans | 100,911 | 107,688 | 83,593 | |
Construction Loans Real Estate [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-Accrual Loans | 151 | 523 | ||
Total Past DueTotal Past DueTotal Past Due | 372 | 523 | ||
Current | 100,539 | 107,165 | ||
Total Loans | 100,911 | 107,688 | ||
Construction Loans Real Estate [Member] | Total Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past DueTotal Past DueTotal Past Due | 221 | 0 | ||
Construction Loans Real Estate [Member] | Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-Accrual Loans | 83 | 0 | ||
Total Past DueTotal Past DueTotal Past Due | 83 | 0 | ||
Current | 849 | 1,070 | ||
Total Loans | 932 | 1,070 | ||
Construction Loans Real Estate [Member] | Purchase Credit Impairment Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past DueTotal Past DueTotal Past Due | 0 | 0 | ||
Construction Loans Real Estate [Member] | Excluding Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-Accrual Loans | 68 | 523 | ||
Total Past DueTotal Past DueTotal Past Due | 289 | 523 | ||
Current | 99,690 | 106,095 | ||
Total Loans | 99,979 | 106,618 | ||
Construction Loans Real Estate [Member] | Excluding Purchase Credit Impairment Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past DueTotal Past DueTotal Past Due | 221 | 0 | ||
Multi Family Residential Real Estate [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Loans | 56,119 | 40,738 | 42,224 | |
Multi Family Residential Real Estate [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-Accrual Loans | 346 | 431 | ||
Total Past DueTotal Past DueTotal Past Due | 392 | 475 | ||
Current | 55,727 | 40,263 | ||
Total Loans | 56,119 | 40,738 | ||
Multi Family Residential Real Estate [Member] | Total Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past DueTotal Past DueTotal Past Due | 46 | 44 | ||
Multi Family Residential Real Estate [Member] | Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-Accrual Loans | 0 | 0 | ||
Total Past DueTotal Past DueTotal Past Due | 0 | 0 | ||
Current | 669 | 689 | ||
Total Loans | 669 | 689 | ||
Multi Family Residential Real Estate [Member] | Purchase Credit Impairment Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past DueTotal Past DueTotal Past Due | 0 | 0 | ||
Multi Family Residential Real Estate [Member] | Excluding Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-Accrual Loans | 346 | 431 | ||
Total Past DueTotal Past DueTotal Past Due | 392 | 475 | ||
Current | 55,058 | 39,574 | ||
Total Loans | 55,450 | 40,049 | ||
Multi Family Residential Real Estate [Member] | Excluding Purchase Credit Impairment Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past DueTotal Past DueTotal Past Due | 46 | 44 | ||
Commercial Real Estate [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Loans | 281,723 | 259,259 | 233,630 | |
Commercial Real Estate [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-Accrual Loans | 3,807 | 3,711 | ||
Total Past DueTotal Past DueTotal Past Due | 4,396 | 4,925 | ||
Current | 277,327 | 254,334 | ||
Total Loans | 281,723 | 259,259 | ||
Commercial Real Estate [Member] | Total Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past DueTotal Past DueTotal Past Due | 589 | 1,214 | ||
Commercial Real Estate [Member] | Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-Accrual Loans | 0 | 0 | ||
Total Past DueTotal Past DueTotal Past Due | 404 | 424 | ||
Current | 7,770 | 9,955 | ||
Total Loans | 8,174 | 10,379 | ||
Commercial Real Estate [Member] | Purchase Credit Impairment Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past DueTotal Past DueTotal Past Due | 404 | 424 | ||
Commercial Real Estate [Member] | Excluding Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-Accrual Loans | 3,807 | 3,711 | ||
Total Past DueTotal Past DueTotal Past Due | 3,992 | 4,501 | ||
Current | 269,557 | 244,379 | ||
Total Loans | 273,549 | 248,880 | ||
Commercial Real Estate [Member] | Excluding Purchase Credit Impairment Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past DueTotal Past DueTotal Past Due | 185 | 790 | ||
Loans to Individuals and Overdrafts [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Loans | 9,827 | 7,255 | 6,017 | |
Loans to Individuals and Overdrafts [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-Accrual Loans | 46 | 4 | ||
Total Past DueTotal Past DueTotal Past Due | 69 | 18 | ||
Current | 9,758 | 7,237 | ||
Total Loans | 9,827 | 7,255 | ||
Loans to Individuals and Overdrafts [Member] | Total Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past DueTotal Past DueTotal Past Due | 23 | 14 | ||
Loans to Individuals and Overdrafts [Member] | Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-Accrual Loans | 0 | 0 | ||
Total Past DueTotal Past DueTotal Past Due | 0 | 0 | ||
Current | 100 | 115 | ||
Total Loans | 100 | 115 | ||
Loans to Individuals and Overdrafts [Member] | Purchase Credit Impairment Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past DueTotal Past DueTotal Past Due | 0 | 0 | ||
Loans to Individuals and Overdrafts [Member] | Excluding Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-Accrual Loans | 46 | 4 | ||
Total Past DueTotal Past DueTotal Past Due | 69 | 18 | ||
Current | 9,658 | 7,122 | ||
Total Loans | 9,727 | 7,140 | ||
Loans to Individuals and Overdrafts [Member] | Excluding Purchase Credit Impairment Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past DueTotal Past DueTotal Past Due | 23 | 14 | ||
Family Residential Real Estate 1 to 4 [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-Accrual Loans | 229 | |||
Total Past DueTotal Past DueTotal Past Due | 738 | |||
Current | 89,811 | |||
Total Loans | 97,978 | 87,955 | 90,903 | |
Family Residential Real Estate 1 to 4 [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past DueTotal Past DueTotal Past Due | 509 | |||
Family Residential Real Estate 1 to 4 [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-Accrual Loans | 602 | 1,594 | ||
Total Past DueTotal Past DueTotal Past Due | 1,233 | 2,244 | ||
Current | 96,745 | 85,711 | ||
Total Loans | 97,978 | 87,955 | ||
Family Residential Real Estate 1 to 4 [Member] | Total Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past DueTotal Past DueTotal Past Due | 631 | 650 | ||
Family Residential Real Estate 1 to 4 [Member] | Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-Accrual Loans | 373 | 142 | ||
Total Past DueTotal Past DueTotal Past Due | 495 | 275 | ||
Current | 6,934 | 7,808 | ||
Total Loans | 7,429 | 8,083 | ||
Family Residential Real Estate 1 to 4 [Member] | Purchase Credit Impairment Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past DueTotal Past DueTotal Past Due | 122 | 133 | ||
Family Residential Real Estate 1 to 4 [Member] | Excluding Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-Accrual Loans | 1,452 | |||
Total Past DueTotal Past DueTotal Past Due | 1,969 | |||
Current | 77,903 | |||
Total Loans | 79,872 | |||
Family Residential Real Estate 1 to 4 [Member] | Excluding Purchase Credit Impairment Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past DueTotal Past DueTotal Past Due | 517 | |||
Home Equity Line of Credit [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Loans | 41,158 | 42,002 | $ 38,093 | |
Home Equity Line of Credit [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-Accrual Loans | 780 | 359 | ||
Total Past DueTotal Past DueTotal Past Due | 804 | 483 | ||
Current | 40,354 | 41,519 | ||
Total Loans | 41,158 | 42,002 | ||
Home Equity Line of Credit [Member] | Total Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past DueTotal Past DueTotal Past Due | 24 | 124 | ||
Home Equity Line of Credit [Member] | Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-Accrual Loans | 0 | 0 | ||
Total Past DueTotal Past DueTotal Past Due | 0 | 0 | ||
Current | 197 | 192 | ||
Total Loans | 197 | 192 | ||
Home Equity Line of Credit [Member] | Purchase Credit Impairment Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past DueTotal Past DueTotal Past Due | 0 | 0 | ||
Home Equity Line of Credit [Member] | Excluding Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-Accrual Loans | 780 | 359 | ||
Total Past DueTotal Past DueTotal Past Due | 804 | 483 | ||
Current | 40,157 | 41,327 | ||
Total Loans | 40,961 | 41,810 | ||
Home Equity Line of Credit [Member] | Excluding Purchase Credit Impairment Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past DueTotal Past DueTotal Past Due | $ 24 | $ 124 |
LOANS (Details 3)
LOANS (Details 3) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Impaired [Line Items] | ||
With no related allowance, Recorded Investment | $ 8,167 | $ 8,486 |
With no related allowance, Contractual Unpaid Principal Balance | 10,512 | 11,633 |
With no related allowance, Average Recorded Investment | 8,540 | 7,927 |
With no related allowance, Interest Income Recognized on Impaired Loans | 440 | 407 |
With an related allowance, Recorded Investment | 2,827 | 1,555 |
With an related allowance, Contractual Unpaid Principal Balance | 3,237 | 1,621 |
Related Allowance | 117 | 94 |
With an related allowance, Average Recorded Investment | 2,191 | 3,799 |
With an related allowance, Interest Income Recognized on Impaired Loans | 55 | 65 |
Recorded Investment Total | 10,994 | 10,041 |
Contractual Unpaid Principal Balance Total | 13,749 | 13,254 |
Average Recorded Investment Total | 10,731 | 11,726 |
Interest Income Recognized on impaired Loans Total | 495 | 472 |
Residential Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Related Allowance | 36 | 15 |
Recorded Investment Total | 2,371 | 3,050 |
Contractual Unpaid Principal Balance Total | 2,987 | 3,824 |
Average Recorded Investment Total | 2,710 | 3,361 |
Interest Income Recognized on impaired Loans Total | 149 | 150 |
Commercial Loan [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Related Allowance | 80 | 75 |
Recorded Investment Total | 7,483 | 6,987 |
Contractual Unpaid Principal Balance Total | 9,617 | 9,426 |
Average Recorded Investment Total | 7,390 | 8,363 |
Interest Income Recognized on impaired Loans Total | 277 | 322 |
Consumer Loan [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Related Allowance | 1 | 4 |
Recorded Investment Total | 1,140 | 4 |
Contractual Unpaid Principal Balance Total | 1,145 | 4 |
Average Recorded Investment Total | 631 | 2 |
Interest Income Recognized on impaired Loans Total | 69 | 0 |
Commercial and Industrial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
With no related allowance, Recorded Investment | 46 | 105 |
With no related allowance, Contractual Unpaid Principal Balance | 46 | 106 |
With no related allowance, Average Recorded Investment | 23 | 291 |
With no related allowance, Interest Income Recognized on Impaired Loans | 4 | 11 |
With an related allowance, Recorded Investment | 0 | 13 |
With an related allowance, Contractual Unpaid Principal Balance | 0 | 13 |
Related Allowance | 0 | 2 |
With an related allowance, Average Recorded Investment | 0 | 139 |
With an related allowance, Interest Income Recognized on Impaired Loans | 0 | 1 |
Construction Loans Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
With no related allowance, Recorded Investment | 231 | 615 |
With no related allowance, Contractual Unpaid Principal Balance | 318 | 764 |
With no related allowance, Average Recorded Investment | 423 | 957 |
With no related allowance, Interest Income Recognized on Impaired Loans | 9 | 18 |
With an related allowance, Recorded Investment | 0 | 0 |
With an related allowance, Contractual Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
With an related allowance, Average Recorded Investment | 0 | 83 |
With an related allowance, Interest Income Recognized on Impaired Loans | 0 | 0 |
Commercial Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
With no related allowance, Recorded Investment | 4,364 | 5,006 |
With no related allowance, Contractual Unpaid Principal Balance | 5,983 | 7,229 |
With no related allowance, Average Recorded Investment | 4,685 | 3,830 |
With no related allowance, Interest Income Recognized on Impaired Loans | 205 | 246 |
With an related allowance, Recorded Investment | 2,496 | 1,248 |
With an related allowance, Contractual Unpaid Principal Balance | 2,905 | 1,314 |
Related Allowance | 80 | 73 |
With an related allowance, Average Recorded Investment | 1,872 | 3,063 |
With an related allowance, Interest Income Recognized on Impaired Loans | 40 | 46 |
Loans to Individuals and Overdrafts [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
With no related allowance, Recorded Investment | 1,139 | 0 |
With no related allowance, Contractual Unpaid Principal Balance | 1,144 | 0 |
With no related allowance, Average Recorded Investment | 622 | 0 |
With no related allowance, Interest Income Recognized on Impaired Loans | 69 | 0 |
With an related allowance, Recorded Investment | 1 | 4 |
With an related allowance, Contractual Unpaid Principal Balance | 1 | 4 |
Related Allowance | 1 | 4 |
With an related allowance, Average Recorded Investment | 9 | 2 |
With an related allowance, Interest Income Recognized on Impaired Loans | 0 | 0 |
Multi Family Residential Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
With no related allowance, Recorded Investment | 346 | 0 |
With no related allowance, Contractual Unpaid Principal Balance | 365 | 0 |
With no related allowance, Average Recorded Investment | 387 | 0 |
With no related allowance, Interest Income Recognized on Impaired Loans | 19 | 0 |
With an related allowance, Recorded Investment | 0 | 0 |
With an related allowance, Contractual Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
With an related allowance, Average Recorded Investment | 0 | 0 |
With an related allowance, Interest Income Recognized on Impaired Loans | 0 | 0 |
Home Equity Line of Credit [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
With no related allowance, Recorded Investment | 1,041 | 699 |
With no related allowance, Contractual Unpaid Principal Balance | 1,378 | 868 |
With no related allowance, Average Recorded Investment | 870 | 668 |
With no related allowance, Interest Income Recognized on Impaired Loans | 51 | 43 |
With an related allowance, Recorded Investment | 34 | 0 |
With an related allowance, Contractual Unpaid Principal Balance | 35 | 0 |
Related Allowance | 19 | 0 |
With an related allowance, Average Recorded Investment | 17 | 142 |
With an related allowance, Interest Income Recognized on Impaired Loans | 1 | 0 |
Family Residential Real Estate 1 to 4 [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
With no related allowance, Recorded Investment | 1,000 | 2,061 |
With no related allowance, Contractual Unpaid Principal Balance | 1,278 | 2,666 |
With no related allowance, Average Recorded Investment | 1,530 | 2,181 |
With no related allowance, Interest Income Recognized on Impaired Loans | 83 | 89 |
With an related allowance, Recorded Investment | 296 | 290 |
With an related allowance, Contractual Unpaid Principal Balance | 296 | 290 |
Related Allowance | 17 | 15 |
With an related allowance, Average Recorded Investment | 293 | 370 |
With an related allowance, Interest Income Recognized on Impaired Loans | $ 14 | $ 18 |
LOANS (Details 4)
LOANS (Details 4) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)Number | Dec. 31, 2015USD ($)Number | |
Financing Receivable, Modifications [Line Items] | ||
Number of loans | Number | 2 | |
Pre-Modification Outstanding Recorded Investment | $ 482 | |
Post-Modification Outstanding Recorded Investment | $ 434 | |
Number of loans | Number | 1 | |
Recorded investment | $ 431 | |
Commercial and Inustrial Below Market Interest Rate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans | 6 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 1,326 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 1,194 | $ 0 |
Number of loans | Number | 4 | 0 |
Recorded investment | $ 660 | $ 0 |
Construction Below Market Interest Rate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans | 1 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 139 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 66 | $ 0 |
Number of loans | Number | 1 | 0 |
Recorded investment | $ 66 | $ 0 |
Commercial Real Estate Below Market Interest Rate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans | 1 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 923 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 911 | $ 0 |
Number of loans | Number | 0 | 0 |
Recorded investment | $ 0 | $ 0 |
Loans to Individuals and Overdrafts Below Market Interest Rate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | 0 | $ 0 |
Number of loans | Number | 0 | |
Recorded investment | $ 0 | $ 0 |
Residential 1 to 4 Family Below Market Interest Rate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans | 2 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 126 | $ 51 |
Post-Modification Outstanding Recorded Investment | $ 126 | $ 3 |
Number of loans | Number | 1 | 0 |
Recorded investment | $ 48 | $ 0 |
Home Equity Line of Credit Below Market Interest Rate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 |
Number of loans | Number | 0 | 0 |
Recorded investment | $ 0 | $ 0 |
Below Market Interest Rate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans | 10 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 2,514 | $ 51 |
Post-Modification Outstanding Recorded Investment | $ 2,297 | $ 3 |
Number of loans | Number | 6 | 1 |
Recorded investment | $ 774 | $ 431 |
Commercial and Inustrial Extended Payment Term [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans | Number | 0 | |
Pre-Modification Outstanding Recorded Investment | $ 0 | |
Post-Modification Outstanding Recorded Investment | $ 0 | |
Construction Extended Payment Term [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans | Number | 0 | |
Pre-Modification Outstanding Recorded Investment | $ 0 | |
Post-Modification Outstanding Recorded Investment | $ 0 | |
Commercial Real Estate Extended Payment Term [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans | Number | 0 | |
Pre-Modification Outstanding Recorded Investment | $ 0 | |
Post-Modification Outstanding Recorded Investment | $ 0 | |
Loans to Individuals and Overdrafts Extended Payment Term [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans | Number | 0 | |
Pre-Modification Outstanding Recorded Investment | $ 0 | |
Post-Modification Outstanding Recorded Investment | $ 0 | |
Residential 1 to 4 Family Extended Payment Term [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans | Number | 0 | |
Pre-Modification Outstanding Recorded Investment | $ 0 | |
Post-Modification Outstanding Recorded Investment | $ 0 | |
Multi Family Residential Extended Payment Term [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans | Number | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 431 | |
Post-Modification Outstanding Recorded Investment | $ 431 | |
Number of loans | Number | 0 | 1 |
Recorded investment | $ 0 | $ 431 |
Home Equity Line of Credit Extended Payment Term [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans | Number | 0 | |
Pre-Modification Outstanding Recorded Investment | $ 0 | |
Post-Modification Outstanding Recorded Investment | $ 0 | |
Extended Payment Term [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans | Number | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 431 | |
Post-Modification Outstanding Recorded Investment | $ 431 |
LOANS (Details 5)
LOANS (Details 5) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jul. 25, 2014 |
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | $ 677,195 | $ 617,398 | $ 552,677 | $ 217,590 |
Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 617,398 | |||
Commercial and Industrial [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 90,678 | 73,491 | 58,217 | |
Commercial and Industrial [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 90,678 | 73,491 | ||
Commercial and Industrial [Member] | Superior [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 435 | 730 | ||
Commercial and Industrial [Member] | Very Good [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 326 | 1,314 | ||
Commercial and Industrial [Member] | Good [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 13,632 | 0 | ||
Commercial and Industrial [Member] | Acceptable [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 35,720 | 25,014 | ||
Commercial and Industrial [Member] | Acceptable With Care [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 37,351 | 37,980 | ||
Commercial and Industrial [Member] | Special Mention [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 2,905 | 58 | ||
Commercial and Industrial [Member] | Substandard [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 309 | 154 | ||
Commercial and Industrial [Member] | Doubtful [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Commercial and Industrial [Member] | Loss [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Construction Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 100,911 | |||
Construction Loans [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 107,688 | |||
Construction Loans [Member] | Superior [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Construction Loans [Member] | Very Good [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 245 | 355 | ||
Construction Loans [Member] | Good [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 4,506 | 8,241 | ||
Construction Loans [Member] | Acceptable [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 12,922 | 19,059 | ||
Construction Loans [Member] | Acceptable With Care [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 82,771 | 79,817 | ||
Construction Loans [Member] | Special Mention [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 173 | 2,015 | ||
Construction Loans [Member] | Substandard [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 294 | 615 | ||
Construction Loans [Member] | Doubtful [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Construction Loans [Member] | Loss [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Commercial Real Estate [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 281,723 | 259,259 | 233,630 | |
Commercial Real Estate [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 281,723 | 259,259 | ||
Commercial Real Estate [Member] | Superior [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Commercial Real Estate [Member] | Very Good [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 460 | 114 | ||
Commercial Real Estate [Member] | Good [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 36,501 | 5,827 | ||
Commercial Real Estate [Member] | Acceptable [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 152,608 | 144,717 | ||
Commercial Real Estate [Member] | Acceptable With Care [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 81,231 | 74,169 | ||
Commercial Real Estate [Member] | Special Mention [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 4,868 | 7,657 | ||
Commercial Real Estate [Member] | Substandard [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 6,055 | 6,064 | ||
Commercial Real Estate [Member] | Doubtful [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Commercial Real Estate [Member] | Loss [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Multi Family Residential Real Estate [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 56,119 | 40,738 | 42,224 | |
Multi Family Residential Real Estate [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 56,119 | 40,738 | ||
Multi Family Residential Real Estate [Member] | Superior [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Multi Family Residential Real Estate [Member] | Very Good [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Multi Family Residential Real Estate [Member] | Good [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 12,139 | 26,538 | ||
Multi Family Residential Real Estate [Member] | Acceptable [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 29,873 | 32,355 | ||
Multi Family Residential Real Estate [Member] | Acceptable With Care [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 13,467 | 7,685 | ||
Multi Family Residential Real Estate [Member] | Special Mention [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Multi Family Residential Real Estate [Member] | Substandard [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 640 | 698 | ||
Multi Family Residential Real Estate [Member] | Doubtful [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Multi Family Residential Real Estate [Member] | Loss [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Loans to Individuals and Overdrafts [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 9,827 | 7,255 | 6,017 | |
Loans to Individuals and Overdrafts [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 9,827 | 7,255 | ||
Loans to Individuals and Overdrafts [Member] | Pass [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 9,820 | 7,236 | ||
Loans to Individuals and Overdrafts [Member] | Non-Pass [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 7 | 19 | ||
Family Residential Real Estate 1 to 4 [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 97,978 | 87,955 | 90,903 | |
Family Residential Real Estate 1 to 4 [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 97,978 | 87,955 | ||
Family Residential Real Estate 1 to 4 [Member] | Pass [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 92,115 | 80,596 | ||
Family Residential Real Estate 1 to 4 [Member] | Special Mention [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 3,015 | 3,678 | ||
Family Residential Real Estate 1 to 4 [Member] | Substandard [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 2,848 | 3,681 | ||
Home Equity Line Of Credit [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 41,158 | 42,002 | $ 38,093 | |
Home Equity Line Of Credit [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 41,158 | 42,002 | ||
Home Equity Line Of Credit [Member] | Pass [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 39,554 | 40,770 | ||
Home Equity Line Of Credit [Member] | Special Mention [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 439 | 448 | ||
Home Equity Line Of Credit [Member] | Substandard [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | $ 1,165 | $ 784 |
LOANS (Details 6)
LOANS (Details 6) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Jul. 25, 2014 |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Contractually required payments | $ 21,761 | $ 25,341 | $ 34,329 |
Nonaccretable difference | 1,415 | 1,411 | 1,402 |
Cash flows expected to be collected | 20,346 | 23,930 | 32,927 |
Accretable yield | 2,626 | 2,822 | 4,360 |
Fair value | $ 17,720 | $ 21,108 | $ 28,567 |
LOANS (Details 7)
LOANS (Details 7) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule Of Certain Loans Acquired In Transfer Accounted For As Debt Securities Accretable Yield [Line Items] | ||
Accretable yield, beginning of period | $ 2,822 | $ 3,762 |
Accretion | (1,055) | (1,220) |
Reclassification from nonaccretable difference | 261 | 163 |
Other changes, net | 598 | 117 |
Accretable yield, end of period | $ 2,626 | $ 2,822 |
LOANS (Details 8)
LOANS (Details 8) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jul. 25, 2014 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | $ 7,021 | |||
Allowance for loan losses, Balance, end of period | 8,411 | $ 7,021 | ||
Ending Balance: individually evaluated for impairment | 117 | 94 | $ 687 | |
Ending Balance: collectively evaluated for impairment | 8,294 | 6,927 | 6,157 | |
Loans | ||||
Ending balance: collectively evaluated for impairment | 667,400 | 608,397 | 537,033 | |
Ending balance: individually evaluated for impairment | 10,994 | 10,041 | 15,644 | |
Ending balance | 677,195 | 617,398 | 552,677 | $ 217,590 |
Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 9 | 0 | 0 | |
Provision for loan losses | 40 | 9 | 0 | |
Loans charged-off | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | |
Allowance for loan losses, Balance, end of period | 49 | 9 | 0 | |
Loans | ||||
Ending balance | 17,720 | 21,108 | ||
Excluding Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 7,012 | 6,844 | 7,054 | |
Provision for loan losses | 1,476 | 881 | (194) | |
Loans charged-off | (675) | (1,127) | (668) | |
Recoveries | 549 | 414 | 652 | |
Allowance for loan losses, Balance, end of period | 8,362 | 7,012 | 6,844 | |
Loans | ||||
Ending balance | 659,475 | 596,290 | ||
Total Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 7,021 | 6,844 | 7,054 | |
Provision for loan losses | 1,516 | 890 | (194) | |
Loans charged-off | (675) | (1,127) | (668) | |
Recoveries | 549 | 414 | 652 | |
Allowance for loan losses, Balance, end of period | 8,411 | 7,021 | 6,844 | |
Loans | ||||
Ending balance | 617,398 | |||
Commercial and Industrial [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending Balance: individually evaluated for impairment | 0 | 2 | 64 | |
Ending Balance: collectively evaluated for impairment | 1,248 | 920 | 739 | |
Loans | ||||
Ending balance: collectively evaluated for impairment | 90,632 | 73,373 | 57,474 | |
Ending balance: individually evaluated for impairment | 46 | 118 | 743 | |
Ending balance | 90,678 | 73,491 | 58,217 | |
Commercial and Industrial [Member] | Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 0 | 0 | 0 | |
Provision for loan losses | 37 | 0 | 0 | |
Loans charged-off | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | |
Allowance for loan losses, Balance, end of period | 37 | 0 | 0 | |
Loans | ||||
Ending balance | 219 | 580 | ||
Commercial and Industrial [Member] | Excluding Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 922 | 803 | 245 | |
Provision for loan losses | 449 | 212 | 589 | |
Loans charged-off | (182) | (141) | (63) | |
Recoveries | 22 | 48 | 32 | |
Allowance for loan losses, Balance, end of period | 1,211 | 922 | 803 | |
Loans | ||||
Ending balance | 90,459 | 72,911 | ||
Commercial and Industrial [Member] | Total Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 922 | 803 | 245 | |
Provision for loan losses | 486 | 212 | 589 | |
Loans charged-off | (182) | (141) | (63) | |
Recoveries | 22 | 48 | 32 | |
Allowance for loan losses, Balance, end of period | 1,248 | 922 | 803 | |
Loans | ||||
Ending balance | 90,678 | 73,491 | ||
Construction Loans Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending Balance: individually evaluated for impairment | 0 | 0 | 80 | |
Ending Balance: collectively evaluated for impairment | 1,301 | 1,386 | 1,023 | |
Loans | ||||
Ending balance: collectively evaluated for impairment | 100,680 | 107,073 | 82,126 | |
Ending balance: individually evaluated for impairment | 231 | 615 | 1,467 | |
Ending balance | 100,911 | 107,688 | 83,593 | |
Construction Loans Real Estate [Member] | Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 0 | 0 | 0 | |
Provision for loan losses | 0 | 0 | 0 | |
Loans charged-off | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | |
Allowance for loan losses, Balance, end of period | 0 | 0 | 0 | |
Loans | ||||
Ending balance | 932 | 1,070 | ||
Construction Loans Real Estate [Member] | Excluding Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 1,386 | 1,103 | 565 | |
Provision for loan losses | (105) | 333 | 479 | |
Loans charged-off | (2) | (79) | (4) | |
Recoveries | 22 | 29 | 63 | |
Allowance for loan losses, Balance, end of period | 1,301 | 1,386 | 1,103 | |
Loans | ||||
Ending balance | 99,979 | 106,618 | ||
Construction Loans Real Estate [Member] | Total Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 1,386 | 1,103 | 565 | |
Provision for loan losses | (105) | 333 | 479 | |
Loans charged-off | (2) | (79) | (4) | |
Recoveries | 22 | 29 | 63 | |
Allowance for loan losses, Balance, end of period | 1,301 | 1,386 | 1,103 | |
Loans | ||||
Ending balance | 100,911 | 107,688 | ||
Commercial Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending Balance: individually evaluated for impairment | 80 | 73 | 419 | |
Ending Balance: collectively evaluated for impairment | 3,368 | 2,932 | 2,495 | |
Loans | ||||
Ending balance: collectively evaluated for impairment | 274,863 | 253,005 | 226,100 | |
Ending balance: individually evaluated for impairment | 6,860 | 6,254 | 7,530 | |
Ending balance | 281,723 | 259,259 | 233,630 | |
Commercial Real Estate [Member] | Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 0 | 0 | 0 | |
Provision for loan losses | 0 | 0 | 0 | |
Loans charged-off | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | |
Allowance for loan losses, Balance, end of period | 0 | 0 | 0 | |
Loans | ||||
Ending balance | 8,174 | 10,379 | ||
Commercial Real Estate [Member] | Excluding Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 3,005 | 2,914 | 4,599 | |
Provision for loan losses | 481 | 670 | (1,899) | |
Loans charged-off | (189) | (663) | (150) | |
Recoveries | 151 | 84 | 364 | |
Allowance for loan losses, Balance, end of period | 3,448 | 3,005 | 2,914 | |
Loans | ||||
Ending balance | 273,549 | 248,880 | ||
Commercial Real Estate [Member] | Total Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 3,005 | 2,914 | 4,599 | |
Provision for loan losses | 481 | 670 | (1,899) | |
Loans charged-off | (189) | (663) | (150) | |
Recoveries | 151 | 84 | 364 | |
Allowance for loan losses, Balance, end of period | 3,448 | 3,005 | 2,914 | |
Loans | ||||
Ending balance | 281,723 | 259,259 | ||
Family Residential Real Estate 1 to 4 [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending Balance: individually evaluated for impairment | 17 | 15 | 74 | |
Ending Balance: collectively evaluated for impairment | 829 | 590 | 556 | |
Loans | ||||
Ending balance: collectively evaluated for impairment | 96,682 | 85,604 | 88,152 | |
Ending balance: individually evaluated for impairment | 1,296 | 2,351 | 2,751 | |
Ending balance | 97,978 | 87,955 | 90,903 | |
Family Residential Real Estate 1 to 4 [Member] | Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 0 | 0 | 0 | |
Provision for loan losses | 0 | 0 | 0 | |
Loans charged-off | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | |
Allowance for loan losses, Balance, end of period | 0 | 0 | 0 | |
Loans | ||||
Ending balance | 7,429 | 8,083 | ||
Family Residential Real Estate 1 to 4 [Member] | Excluding Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 605 | 630 | 826 | |
Provision for loan losses | (51) | (57) | (262) | |
Loans charged-off | (7) | (70) | (26) | |
Recoveries | 299 | 102 | 92 | |
Allowance for loan losses, Balance, end of period | 846 | 605 | 630 | |
Loans | ||||
Ending balance | 79,872 | |||
Family Residential Real Estate 1 to 4 [Member] | Total Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 605 | 630 | 826 | |
Provision for loan losses | (51) | (57) | (262) | |
Loans charged-off | (7) | (70) | (26) | |
Recoveries | 299 | 102 | 92 | |
Allowance for loan losses, Balance, end of period | 846 | 605 | 630 | |
Loans | ||||
Ending balance | 97,978 | 87,955 | ||
Home Equity Line of Credit [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending Balance: individually evaluated for impairment | 19 | 0 | 50 | |
Ending Balance: collectively evaluated for impairment | 604 | 573 | 880 | |
Loans | ||||
Ending balance: collectively evaluated for impairment | 40,083 | 41,303 | 37,172 | |
Ending balance: individually evaluated for impairment | 1,075 | 699 | 921 | |
Ending balance | 41,158 | 42,002 | 38,093 | |
Home Equity Line of Credit [Member] | Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 9 | 0 | 0 | |
Provision for loan losses | 3 | 9 | 0 | |
Loans charged-off | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | |
Allowance for loan losses, Balance, end of period | 12 | 9 | 0 | |
Loans | ||||
Ending balance | 197 | 192 | ||
Home Equity Line of Credit [Member] | Excluding Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 564 | 930 | 680 | |
Provision for loan losses | 217 | (272) | 499 | |
Loans charged-off | (205) | (115) | (327) | |
Recoveries | 35 | 21 | 78 | |
Allowance for loan losses, Balance, end of period | 611 | 564 | 930 | |
Loans | ||||
Ending balance | 40,961 | 41,810 | ||
Home Equity Line of Credit [Member] | Total Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 573 | 930 | 680 | |
Provision for loan losses | 220 | (263) | 499 | |
Loans charged-off | (205) | (115) | (327) | |
Recoveries | 35 | 21 | 78 | |
Allowance for loan losses, Balance, end of period | 623 | 573 | 930 | |
Loans | ||||
Ending balance | 41,158 | 42,002 | ||
Loans to Individuals and Overdrafts [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending Balance: individually evaluated for impairment | 1 | 4 | 0 | |
Ending Balance: collectively evaluated for impairment | 316 | 133 | 185 | |
Loans | ||||
Ending balance: collectively evaluated for impairment | 8,687 | 7,251 | 6,017 | |
Ending balance: individually evaluated for impairment | 1,140 | 4 | 0 | |
Ending balance | 9,827 | 7,255 | 6,017 | |
Loans to Individuals and Overdrafts [Member] | Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 0 | 0 | 0 | |
Provision for loan losses | 0 | 0 | 0 | |
Loans charged-off | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | |
Allowance for loan losses, Balance, end of period | 0 | 0 | 0 | |
Loans | ||||
Ending balance | 100 | 115 | ||
Loans to Individuals and Overdrafts [Member] | Excluding Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 137 | 185 | 65 | |
Provision for loan losses | 250 | (18) | 195 | |
Loans charged-off | (90) | (54) | (98) | |
Recoveries | 20 | 24 | 23 | |
Allowance for loan losses, Balance, end of period | 317 | 137 | 185 | |
Loans | ||||
Ending balance | 9,727 | 7,140 | ||
Loans to Individuals and Overdrafts [Member] | Total Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 137 | 185 | 65 | |
Provision for loan losses | 250 | (18) | 195 | |
Loans charged-off | (90) | (54) | (98) | |
Recoveries | 20 | 24 | 23 | |
Allowance for loan losses, Balance, end of period | 317 | 137 | 185 | |
Loans | ||||
Ending balance | 9,827 | 7,255 | ||
Multi Family Residential Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending Balance: individually evaluated for impairment | 0 | 0 | 0 | |
Ending Balance: collectively evaluated for impairment | 628 | 393 | 279 | |
Loans | ||||
Ending balance: collectively evaluated for impairment | 55,773 | 40,738 | 39,992 | |
Ending balance: individually evaluated for impairment | 346 | 0 | 2,232 | |
Ending balance | 56,119 | 40,738 | 42,224 | |
Multi Family Residential Real Estate [Member] | Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 0 | 0 | 0 | |
Provision for loan losses | 0 | 0 | 0 | |
Loans charged-off | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | |
Allowance for loan losses, Balance, end of period | 0 | 0 | 0 | |
Loans | ||||
Ending balance | 669 | 689 | ||
Multi Family Residential Real Estate [Member] | Excluding Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 393 | 279 | 74 | |
Provision for loan losses | 235 | 13 | 205 | |
Loans charged-off | 0 | (5) | 0 | |
Recoveries | 0 | 106 | 0 | |
Allowance for loan losses, Balance, end of period | 628 | 393 | 279 | |
Loans | ||||
Ending balance | 55,450 | 40,049 | ||
Multi Family Residential Real Estate [Member] | Total Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 393 | 279 | 74 | |
Provision for loan losses | 235 | 13 | 205 | |
Loans charged-off | 0 | (5) | 0 | |
Recoveries | 0 | 106 | 0 | |
Allowance for loan losses, Balance, end of period | 628 | 393 | $ 279 | |
Loans | ||||
Ending balance | $ 56,119 | $ 40,738 |
LOANS (Details Textual)
LOANS (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | $ 10,994,000 | $ 10,041,000 | |
Impaired Loans Required for Specific Reserves | 2,800,000 | 1,600,000 | |
With no related allowance, Recorded Investment | 8,167,000 | 8,486,000 | |
Increase (Decrease) in Finance Receivables | 2,300,000 | 8,500,000 | |
Allowance for Loan and Lease Losses, Period Increase (Decrease) | 8,400,000 | ||
Financing Receivable, Recorded Investment, Past Due, Total | 8,798,000 | ||
Allowance for Loan and Lease Losses Write-offs, Net | 3,200,000 | 3,100,000 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net | 17,700,000 | 21,100,000 | $ 28,500,000 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Financing Receivable, Recorded Investment, Past Due, Total | 529,000 | 142,000 | |
Nonaccrual Impaired Loans [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | 5,800,000 | 6,600,000 | |
Accrual Impaired Loans [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | 5,200,000 | $ 3,100,000 | |
Troubled Debt Restructurings [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | 6,000,000 | ||
Troubled Debt Restructuring Accrual Status [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | 3,600,000 | ||
Troubled Debt Restructuring Nonaccrual Status [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | 2,400,000 | ||
Unused Lines of Credit [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Line of Credit Facility, Maximum Amount Outstanding During Period | 143,100,000 | ||
Unused Lines of Credit [Member] | Directors and Executive Officers [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Line of Credit Facility, Maximum Amount Outstanding During Period | $ 3,100,000 |
OTHER REAL ESTATE OWNED (Detail
OTHER REAL ESTATE OWNED (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule Of Real Estate Owned Properties [Line Items] | |||
Beginning balance January 1 | $ 1,401 | $ 1,585 | |
Sales | (2,062) | (635) | |
Write-downs and loss on sales | (158) | (139) | |
Transfers | 1,418 | 590 | $ 1,197 |
Ending balance | $ 599 | $ 1,401 | $ 1,585 |
OTHER REAL ESTATE OWNED (Deta67
OTHER REAL ESTATE OWNED (Details Textual) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule Of Real Estate Owned Properties [Line Items] | |||
Real Estate Acquired Through Foreclosure | $ 599 | $ 1,401 | $ 1,585 |
PREMISES AND EQUIPMENT (Details
PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Land | $ 5,054 | $ 5,520 |
Buildings | 14,519 | 14,841 |
Furniture and equipment | 5,846 | 5,249 |
Leasehold improvements | 144 | 144 |
Construction in progress | 0 | 0 |
Property, Plant and Equipment, Gross | 25,563 | 25,754 |
Less accumulated depreciation | 7,632 | 6,676 |
Total | $ 17,931 | $ 19,078 |
PREMISES AND EQUIPMENT (Detai69
PREMISES AND EQUIPMENT (Details 1) $ in Thousands | Dec. 31, 2016USD ($) |
Property, Plant and Equipment [Line Items] | |
2,017 | $ 338 |
2,018 | 358 |
2,019 | 369 |
2,020 | 350 |
2,021 | 341 |
Years thereafter | 591 |
Operating Leases, Future Minimum Payments Due | $ 2,347 |
PREMISES AND EQUIPMENT (Detai70
PREMISES AND EQUIPMENT (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 1,100,000 | $ 1,000,000 | $ 736,000 |
Lease Expiration, Description | expire at various times through 2027 | ||
Operating Leases, Rent Expense | $ 370,000 | 401,000 | 290,000 |
Rental Income, Nonoperating | $ 182,000 | $ 161,000 | $ 84,000 |
GOODWILL AND OTHER INTANGIBLE71
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill, Beginning Balance | $ 6,931 | $ 6,931 | $ 0 |
Goodwill, Amortization Expense | 0 | 0 | 0 |
Goodwill, Goodwill and core deposit intangible resulting from merger | 6,931 | ||
Goodwill, Core deposit intangible resulting from branch acquisition | 0 | ||
Goodwill, Ending Balance | 6,931 | 6,931 | 6,931 |
Core Deposit Intangible, Gross - Beginning Balance | 3,219 | 3,059 | 1,269 |
Core Deposit Intangible, Gross - Amortization expense | 0 | 0 | 0 |
Core Deposit Intangible, Gross - Goodwill and core deposit intangible resulting from merger | 1,790 | ||
Core Deposit Intangible, Gross - Core deposit intangible resulting from branch acquisition | 160 | ||
Core Deposit Intangible, Gross - Ending Balance | 3,219 | 3,219 | 3,059 |
Core Deposit Intangible, Accumulated Amortization - Beginning Balance | (1,978) | (1,434) | (1,087) |
Core Deposit Intangible, Accumulated Amortization - Amortization expense | (431) | (544) | (347) |
Core Deposit Intangible, Accumulated Amortization - Goodwill and core deposit intangible resulting from merger | 0 | ||
Core Deposit Intangible, Accumulated Amortization - Core deposit intangible resulting from branch acquisition | 0 | ||
Core Deposit Intangible, Accumulated Amortization - Ending Balance | (2,409) | (1,978) | (1,434) |
Core Deposit Intangible, Net - Beginning Balance | 1,241 | 1,625 | 182 |
Core Deposit Intangible, Net - Amortization expense | (431) | (544) | (347) |
Core Deposit Intangible, Net - Goodwill and core deposit intangible resulting from merger | 1,790 | ||
Core Deposit Intangible, Net - Core deposit intangible resulting from branch acquisition | 160 | ||
Core Deposit Intangible, Net - Ending Balance | $ 810 | $ 1,241 | $ 1,625 |
GOODWILL AND OTHER INTANGIBLE72
GOODWILL AND OTHER INTANGIBLE ASSETS (Details 1) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jul. 25, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | |||||
2,017 | $ 339 | ||||
2,018 | 246 | ||||
2,019 | 154 | ||||
2,020 | 61 | ||||
2,021 | 9 | ||||
Thereafter | 1 | ||||
Finite-Lived Intangible Assets, Net | $ 810 | $ 1,241 | $ 1,625 | $ 1,790 | $ 182 |
GOODWILL AND OTHER INTANGIBLE73
GOODWILL AND OTHER INTANGIBLE ASSETS (Details Textual) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jul. 25, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | $ 3,219,000 | $ 3,219,000 | $ 3,059,000 | $ 1,269,000 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 2,409,000 | 1,978,000 | 1,434,000 | 1,087,000 | |
Finite-Lived Intangible Assets, Net | 810,000 | $ 1,241,000 | $ 1,625,000 | $ 1,790,000 | $ 182,000 |
Core Deposits [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 3,200,000 | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | 2,400,000 | ||||
Finite-Lived Intangible Assets, Net | $ 810,000 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deposits [Line Items] | ||
2,017 | $ 246,828 | |
2,018 | 24,114 | |
2,019 | 9,040 | |
2,020 | 10,576 | |
2,021 | 12,935 | |
Thereafter | 0 | |
Time Deposits | $ 303,493 | $ 286,054 |
DEPOSITS (Details Textual)
DEPOSITS (Details Textual) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Deposits [Line Items] | ||
Time Deposits, $ 250,000 or More | $ 68.8 | $ 61.6 |
REPURCHASE AGREEMENTS (Details)
REPURCHASE AGREEMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Available-for-sale Securities, Total | $ 62,257 | $ 80,709 |
Repurchase Agreements [Member] | ||
Available-for-sale Securities, Total | 12,064 | 12,149 |
Gross amount of recognized liabilities for repurchase agreements | 12,003 | 12,146 |
U.S. Government agencies-GSE’s [Member] | ||
Available-for-sale Securities, Total | 14,159 | 21,226 |
U.S. Government agencies-GSE’s [Member] | Repurchase Agreements [Member] | ||
Available-for-sale Securities, Total | 5,568 | 4,206 |
Mortgage-backed Securities-GSE’s [Member] | ||
Available-for-sale Securities, Total | 32,363 | 39,536 |
Mortgage-backed Securities-GSE’s [Member] | Repurchase Agreements [Member] | ||
Available-for-sale Securities, Total | 6,496 | 7,943 |
Overnight and continuous [Member] | Repurchase Agreements [Member] | ||
Available-for-sale Securities, Total | 12,064 | 12,149 |
Overnight and continuous [Member] | U.S. Government agencies-GSE’s [Member] | Repurchase Agreements [Member] | ||
Available-for-sale Securities, Total | 5,568 | 4,206 |
Overnight and continuous [Member] | Mortgage-backed Securities-GSE’s [Member] | Repurchase Agreements [Member] | ||
Available-for-sale Securities, Total | 64,968 | 7,943 |
Maturity Less than 30 Days [Member] | Repurchase Agreements [Member] | ||
Available-for-sale Securities, Total | 0 | 0 |
Maturity Less than 30 Days [Member] | U.S. Government agencies-GSE’s [Member] | Repurchase Agreements [Member] | ||
Available-for-sale Securities, Total | 0 | 0 |
Maturity Less than 30 Days [Member] | Mortgage-backed Securities-GSE’s [Member] | Repurchase Agreements [Member] | ||
Available-for-sale Securities, Total | 0 | 0 |
Maturity 30 to 90 Days [Member] | Repurchase Agreements [Member] | ||
Available-for-sale Securities, Total | 0 | 0 |
Maturity 30 to 90 Days [Member] | U.S. Government agencies-GSE’s [Member] | Repurchase Agreements [Member] | ||
Available-for-sale Securities, Total | 0 | 0 |
Maturity 30 to 90 Days [Member] | Mortgage-backed Securities-GSE’s [Member] | Repurchase Agreements [Member] | ||
Available-for-sale Securities, Total | 0 | 0 |
Maturity Greater than 90 Days [Member] | Repurchase Agreements [Member] | ||
Available-for-sale Securities, Total | 0 | 0 |
Maturity Greater than 90 Days [Member] | U.S. Government agencies-GSE’s [Member] | Repurchase Agreements [Member] | ||
Available-for-sale Securities, Total | 0 | 0 |
Maturity Greater than 90 Days [Member] | Mortgage-backed Securities-GSE’s [Member] | Repurchase Agreements [Member] | ||
Available-for-sale Securities, Total | $ 0 | $ 0 |
REPURCHASE AGREEMENTS (Details
REPURCHASE AGREEMENTS (Details Textual) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Securities Sold under Agreements to Repurchase [Member] | ||
Available For Sale Securities Pledged As Collateral Carrying Value | $ 12 | $ 12.1 |
SHORT-TERM AND LONG-TERM DEBT78
SHORT-TERM AND LONG-TERM DEBT (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Short Term And Long Term Debt [Line Items] | ||
Balance at December 31 | $ 12,003 | $ 12,149 |
Weighted average interest rate at December 31 | 0.32% | 0.34% |
Maximum amount outstanding at any month-end during the year | $ 12,003 | $ 13,405 |
Average daily balance outstanding during the year | $ 9,973 | $ 13,337 |
Average annual interest rate paid during the year | 0.30% | 0.31% |
SHORT-TERM AND LONG-TERM DEBT79
SHORT-TERM AND LONG-TERM DEBT (Details 1) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Fixed Rate Credit One [Member] | |
Short Term And Long Term Debt [Line Items] | |
Advance type, Maturity Date | Jan. 27, 2017 |
Principal Reducing One [Member] | |
Short Term And Long Term Debt [Line Items] | |
Advance type, Maturity Date | Sep. 13, 2018 |
Convertible Debt [Member] | |
Short Term And Long Term Debt [Line Items] | |
Advance type, Maturity Date | Jun. 28, 2017 |
Fixed Rate Credit Two [Member] | |
Short Term And Long Term Debt [Line Items] | |
Advance type, Maturity Date | Jan. 30, 2017 |
Fixed Rate Credit Three [Member] | |
Short Term And Long Term Debt [Line Items] | |
Advance type, Maturity Date | Jul. 30, 2018 |
Federal Home Loan Bank of Atlanta [Member] | Fixed Rate Credit One [Member] | |
Short Term And Long Term Debt [Line Items] | |
Advance type, Amount | $ 15,000 |
Advance type, Rate | 0.63% |
Federal Home Loan Bank of Atlanta [Member] | Principal Reducing One [Member] | |
Short Term And Long Term Debt [Line Items] | |
Advance type, Amount | $ 667 |
Advance type, Rate | 1.09% |
Federal Home Loan Bank of Atlanta [Member] | Convertible Debt [Member] | |
Short Term And Long Term Debt [Line Items] | |
Advance type, Amount | $ 5,087 |
Advance type, Rate | 4.63% |
Federal Home Loan Bank of Atlanta [Member] | Fixed Rate Credit Two [Member] | |
Short Term And Long Term Debt [Line Items] | |
Advance type, Amount | $ 5,000 |
Advance type, Rate | 0.61% |
Federal Home Loan Bank of Atlanta [Member] | Fixed Rate Credit Three [Member] | |
Short Term And Long Term Debt [Line Items] | |
Advance type, Amount | $ 10,000 |
Advance type, Rate | 1.38% |
SHORT-TERM AND LONG-TERM DEBT80
SHORT-TERM AND LONG-TERM DEBT (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2004 | |
Short Term And Long Term Debt [Line Items] | |||
Short-term debt | $ 37,090,000 | $ 29,673,000 | |
Long-term Debt | 23,039,000 | 28,703,000 | |
Federal Home Loan Bank, Advances, Maturities Summary, Due in Next Twelve Months | 12,400,000 | ||
Junior Subordinated Notes | 12,400,000 | 12,400,000 | |
Federal Home Loan Bank, Advances | $ 10,600,000 | 20,700,000 | |
Debt Instrument, Description of Variable Rate Basis | 3 month LIBOR plus 2.15%. | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 174,500,000 | ||
Line of Credit Facility, Current Borrowing Capacity | 35,700,000 | ||
Line of Credit Facility, Remaining Borrowing Capacity | 138,800,000 | ||
Loans from Other Federal Home Loan Banks | 93,500,000 | $ 78,600,000 | |
Federal Home Loan Bank, Advances, Premium | 87,000 | ||
Repurchase Agreements [Member] | |||
Short Term And Long Term Debt [Line Items] | |||
Short-term debt | 12,000,000 | ||
Federal Home Loan Bank Advances [Member] | |||
Short Term And Long Term Debt [Line Items] | |||
Short-term debt | 25,100,000 | ||
Federal Home Loan Bank of Atlanta [Member] | |||
Short Term And Long Term Debt [Line Items] | |||
Junior Subordinated Notes | $ 12,400,000 | ||
Federal Home Loan Bank, Advances | $ 35,700,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current tax provision: | |||
Federal | $ 2,998 | $ 2,094 | $ 1,067 |
State | 498 | 354 | 240 |
Total current tax provision | 3,496 | 2,448 | 1,307 |
Deferred tax provision: | |||
Federal | 52 | 752 | 123 |
State | 99 | 218 | 7 |
Total deferred tax provision | 151 | 970 | 130 |
Net income tax provision | $ 3,647 | $ 3,418 | $ 1,437 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Line Items] | |||
Income tax at federal statutory rate | $ 3,536 | $ 3,390 | $ 1,290 |
Increase (decrease) resulting from: | |||
State income taxes, net of federal tax effect | 394 | 377 | 164 |
Tax-exempt interest income | (151) | (172) | (116) |
Income from life insurance | (201) | (213) | (92) |
Incentive stock option expense | 24 | 13 | 18 |
Merger expenses | 0 | 0 | 151 |
Other permanent differences | 45 | 23 | 22 |
Provision for income taxes | $ 3,647 | $ 3,418 | $ 1,437 |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets relating to: | ||
Allowance for loan losses | $ 3,026 | $ 2,572 |
Deferred compensation | 294 | 305 |
Supplemental executive retirement plan | 17 | 58 |
Acquisition accounting | 986 | 1,624 |
Core deposit intangible | 165 | 61 |
Write-downs on foreclosed real estate | 53 | 92 |
Other | 184 | 157 |
Total deferred tax assets | 4,725 | 4,869 |
Deferred tax liabilities relating to: | ||
Premises and equipment | (1,287) | (1,285) |
Deferred loan fees/costs | (70) | (57) |
Unrealized gains on available-for-sale securities | (204) | (292) |
Other | (32) | (39) |
Total deferred tax liabilities | (1,593) | (1,673) |
Net recorded deferred tax asset, included in other assets | $ 3,132 | $ 3,196 |
INCOME TAXES (Details Textual)
INCOME TAXES (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Line Items] | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | 34.00% | |
Deferred Tax Assets, Net | $ 3,132 | $ 3,196 |
ACCUMULATED OTHER COMPREHENSI85
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Beginning balance | $ 490 | $ 809 | |
Unrealized (gain) loss on investment securities available for sale | (185) | (176) | $ 1,408 |
Tax effect | 67 | 65 | (520) |
Other comprehensive income (loss) before reclassification | (118) | (111) | 888 |
Amounts reclassified from accumulated comprehensive income: | |||
Realized (gain) loss on investment securities included in net income | (22) | (332) | 46 |
Tax effect | 8 | 124 | (17) |
Total reclassifications net of tax | (14) | (208) | 29 |
Net current period other comprehensive income (loss) | (132) | (319) | 917 |
Ending balance | $ 358 | $ 490 | $ 809 |
REGULATORY MATTERS (Details)
REGULATORY MATTERS (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Capital, Actual Amount | $ 112,375 | $ 111,773 |
Capital to Risk Weighted Assets, Actual Ratio | 14.53% | 15.47% |
Capital Required for Capital Adequacy, Amount | $ 61,876 | $ 57,809 |
Capital Required for Capital Adequacy to Risk Weighted Assets, Ratio | 8.00% | 8.00% |
Capital Required to be Well Capitalized | $ 77,346 | $ 72,261 |
Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | 10.00% |
Tier One Risk Based Capital, Actual Amount | $ 103,964 | $ 104,752 |
Tier One Risk Based Capital to Risk Weighted Assets, Actual Ratio | 13.44% | 14.50% |
Tier One Risk Based Capital Required for Capital Adequacy, Amount | $ 46,407 | $ 43,357 |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets, Ratio | 6.00% | 6.00% |
Tier One Risk Based Capital Required to be Well Capitalized | $ 61,876 | $ 57,809 |
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 8.00% | 8.00% |
Common Equity Tier One Risk Based Capital, Amount | $ 103,964 | $ 104,752 |
Common Equity Tier One Risk Based Capital to Risk Weighted Assets, Ratio | 13.44% | 14.50% |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy, Amount | $ 34,806 | $ 32,517 |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets, Ratio | 4.50% | 4.50% |
Common Equity Tier One Risk Based Capital Required to be Well Capitalized, Amount | $ 50,275 | $ 46,970 |
Common Equity Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets, Ratio | 6.50% | 6.50% |
Tier One Leverage Capital, Actual Amount | $ 103,964 | $ 104,752 |
Tier One Leverage Capital to Average Assets, Actual Ratio | 12.44% | 13.31% |
Tier One Leverage Capital Required for Capital Adequacy, Amount | $ 33,422 | $ 31,483 |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets, Ratio | 4.00% | 4.00% |
Tier One Leverage Capital Required to be Well Capitalized | $ 41,777 | $ 39,354 |
Tier One Leverage Capital Required to be Well Capitalized to Average Assets | 5.00% | 5.00% |
Subsidiaries [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Capital, Actual Amount | $ 116,909 | $ 115,805 |
Capital to Risk Weighted Assets, Actual Ratio | 15.12% | 16.01% |
Capital Required for Capital Adequacy, Amount | $ 61,876 | $ 57,852 |
Capital Required for Capital Adequacy to Risk Weighted Assets, Ratio | 8.00% | 8.00% |
Tier One Risk Based Capital, Actual Amount | $ 108,498 | $ 108,784 |
Tier One Risk Based Capital to Risk Weighted Assets, Actual Ratio | 14.03% | 15.04% |
Tier One Risk Based Capital Required for Capital Adequacy, Amount | $ 46,407 | $ 43,389 |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets, Ratio | 6.00% | 6.00% |
Common Equity Tier One Risk Based Capital, Amount | $ 96,498 | $ 89,139 |
Common Equity Tier One Risk Based Capital to Risk Weighted Assets, Ratio | 12.48% | 12.33% |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy, Amount | $ 34,805 | $ 32,542 |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets, Ratio | 4.50% | 4.50% |
Tier One Leverage Capital, Actual Amount | $ 108,498 | $ 108,784 |
Tier One Leverage Capital to Average Assets, Actual Ratio | 12.99% | 13.81% |
Tier One Leverage Capital Required for Capital Adequacy, Amount | $ 33,422 | $ 31,505 |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets, Ratio | 4.00% | 4.00% |
REGULATORY MATTERS (Details Tex
REGULATORY MATTERS (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Junior Subordinated Notes | $ 12.4 | $ 12.4 |
Trust Preferred Securities [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Proceeds from Issuance of Trust Preferred Securities | $ 12 |
OFF-BALANCE SHEET RISK (Details
OFF-BALANCE SHEET RISK (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Undisbursed Commitments [Member] | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Asset | $ 141,176 |
Letters Of Credit [Member] | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Asset | $ 1,969 |
OFF-BALANCE SHEET RISK (Detai89
OFF-BALANCE SHEET RISK (Details Textual) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other Commitment, Total | $ 200,000 | $ 200,000 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets, Fair Value Disclosure, Recurring | $ 62,257 | $ 80,709 |
US Government Agencies Debt Securities [Member] | ||
Assets, Fair Value Disclosure, Recurring | 14,159 | 21,226 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Assets, Fair Value Disclosure, Recurring | 32,363 | 39,536 |
Municipal Bonds [Member] | ||
Assets, Fair Value Disclosure, Recurring | 15,735 | 19,947 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets, Fair Value Disclosure, Recurring | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | US Government Agencies Debt Securities [Member] | ||
Assets, Fair Value Disclosure, Recurring | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Assets, Fair Value Disclosure, Recurring | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Municipal Bonds [Member] | ||
Assets, Fair Value Disclosure, Recurring | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets, Fair Value Disclosure, Recurring | 62,257 | 80,709 |
Fair Value, Inputs, Level 2 [Member] | US Government Agencies Debt Securities [Member] | ||
Assets, Fair Value Disclosure, Recurring | 14,159 | 21,226 |
Fair Value, Inputs, Level 2 [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Assets, Fair Value Disclosure, Recurring | 32,363 | 39,536 |
Fair Value, Inputs, Level 2 [Member] | Municipal Bonds [Member] | ||
Assets, Fair Value Disclosure, Recurring | 15,735 | 19,947 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets, Fair Value Disclosure, Recurring | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | US Government Agencies Debt Securities [Member] | ||
Assets, Fair Value Disclosure, Recurring | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Assets, Fair Value Disclosure, Recurring | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Municipal Bonds [Member] | ||
Assets, Fair Value Disclosure, Recurring | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Deta91
FAIR VALUE MEASUREMENTS (Details 1) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets, Fair Value Disclosure, Nonrecurring | $ 7,250 | $ 8,882 |
Impaired Loans [Member] | ||
Assets, Fair Value Disclosure, Nonrecurring | 5,805 | 6,635 |
Assets held for sale [Member] | ||
Assets, Fair Value Disclosure, Nonrecurring | 846 | 846 |
Foreclosed Real Estate [Member] | ||
Assets, Fair Value Disclosure, Nonrecurring | 599 | 1,401 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Impaired Loans [Member] | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Assets held for sale [Member] | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Foreclosed Real Estate [Member] | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Impaired Loans [Member] | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Assets held for sale [Member] | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Foreclosed Real Estate [Member] | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets, Fair Value Disclosure, Nonrecurring | 7,250 | 8,882 |
Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member] | ||
Assets, Fair Value Disclosure, Nonrecurring | 5,805 | 6,635 |
Fair Value, Inputs, Level 3 [Member] | Assets held for sale [Member] | ||
Assets, Fair Value Disclosure, Nonrecurring | 846 | 846 |
Fair Value, Inputs, Level 3 [Member] | Foreclosed Real Estate [Member] | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 599 | $ 1,401 |
FAIR VALUE MEASUREMENTS (Deta92
FAIR VALUE MEASUREMENTS (Details 2) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Jul. 25, 2014 |
Financial assets: | |||
Cash and due from banks | $ 14,372 | $ 12,567 | |
Certificates of deposits | 1,000 | 1,000 | |
Interest-earning deposits in other banks | 40,342 | 49,842 | |
Investment securities available for sale | 62,257 | 80,709 | |
Loans, net | 668,784 | 610,377 | |
Accrued interest receivable | 2,768 | 2,350 | |
Stock in the FHLB | 2,251 | 2,112 | |
Other non-marketable securities | 703 | 705 | |
Assets held for sale | 846 | 846 | |
Financial liabilities: | |||
Deposits | 679,661 | 651,161 | $ 222,207 |
Short-term debt | 37,090 | 29,673 | |
Long-term debt | 23,039 | 28,703 | |
Accrued interest payable | 221 | 232 | |
Estimate of Fair Value Measurement [Member] | |||
Financial assets: | |||
Cash and due from banks | 14,372 | 12,567 | |
Certificates of deposits | 1,000 | 1,000 | |
Interest-earning deposits in other banks | 40,342 | 49,842 | |
Investment securities available for sale | 62,257 | 80,709 | |
Loans, net | 671,208 | 615,754 | |
Accrued interest receivable | 2,768 | 2,350 | |
Stock in the FHLB | 2,251 | 2,112 | |
Other non-marketable securities | 703 | 705 | |
Assets held for sale | 846 | 846 | |
Financial liabilities: | |||
Deposits | 678,328 | 651,255 | |
Short-term debt | 37,177 | 29,673 | |
Long-term debt | 17,649 | 23,718 | |
Accrued interest payable | 221 | 232 | |
Fair Value, Inputs, Level 1 [Member] | |||
Financial assets: | |||
Cash and due from banks | 14,372 | 12,567 | |
Certificates of deposits | 1,000 | 1,000 | |
Interest-earning deposits in other banks | 40,342 | 49,842 | |
Investment securities available for sale | 0 | 0 | |
Loans, net | 0 | 0 | |
Accrued interest receivable | 0 | 0 | |
Stock in the FHLB | 0 | 0 | |
Other non-marketable securities | 0 | 0 | |
Assets held for sale | 0 | 0 | |
Financial liabilities: | |||
Deposits | 0 | 0 | |
Short-term debt | 0 | 0 | |
Long-term debt | 0 | 0 | |
Accrued interest payable | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | |||
Financial assets: | |||
Cash and due from banks | 0 | 0 | |
Certificates of deposits | 0 | 0 | |
Interest-earning deposits in other banks | 0 | 0 | |
Investment securities available for sale | 62,257 | 80,709 | |
Loans, net | 0 | 0 | |
Accrued interest receivable | 0 | 0 | |
Stock in the FHLB | 0 | 0 | |
Other non-marketable securities | 0 | 0 | |
Assets held for sale | 0 | 0 | |
Financial liabilities: | |||
Deposits | 678,328 | 651,255 | |
Short-term debt | 37,177 | 29,673 | |
Long-term debt | 17,649 | 23,718 | |
Accrued interest payable | 221 | 232 | |
Fair Value, Inputs, Level 3 [Member] | |||
Financial assets: | |||
Cash and due from banks | 0 | 0 | |
Certificates of deposits | 0 | 0 | |
Interest-earning deposits in other banks | 0 | 0 | |
Investment securities available for sale | 0 | 0 | |
Loans, net | 671,208 | 615,754 | |
Accrued interest receivable | 2,768 | 2,350 | |
Stock in the FHLB | 2,251 | 2,112 | |
Other non-marketable securities | 703 | 705 | |
Assets held for sale | 846 | 846 | |
Financial liabilities: | |||
Deposits | 0 | 0 | |
Short-term debt | 0 | 0 | |
Long-term debt | 0 | 0 | |
Accrued interest payable | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Deta93
FAIR VALUE MEASUREMENTS (Details Textual) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Impaired Loans Receivable | $ 11,000,000 | $ 10,000,000 |
Assets, Fair Value Disclosure, Nonrecurring | 7,250,000 | 8,882,000 |
Impaired Loans Required for Specific Reserves | 2,800,000 | 1,600,000 |
Impaired Loans Specific Reserves | 117,000 | 94,000 |
Other Impaired Loans Without Specific Reserves | $ 88,000 | $ 1,600,000 |
Minimum [Member] | ||
Percentage Of Discount From Impaired Loans | 6.00% | 4.00% |
Percentage Of Discount From Assets held for sale | 1.00% | |
Minimum [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Percentage Of Discount From Foreclosed Real Estate | 6.00% | 6.00% |
Maximum [Member] | ||
Percentage Of Discount From Impaired Loans | 61.00% | 50.00% |
Percentage Of Discount From Assets held for sale | 25.00% | |
Maximum [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Percentage Of Discount From Foreclosed Real Estate | 10.00% | 10.00% |
Fair Value [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 11,000,000 | $ 10,000,000 |
EMPLOYEE AND DIRECTOR BENEFIT94
EMPLOYEE AND DIRECTOR BENEFIT PLANS (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated fair value of options granted | $ 4.17 | $ 3.74 | $ 0 |
Assumptions in estimating average option values: | |||
Risk-free interest rate | 1.59% | 1.87% | 0.00% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Volatility | 46.09% | 48.13% | 0.00% |
Expected life (in years) | 8 years | 8 years | 0 years |
EMPLOYEE AND DIRECTOR BENEFIT95
EMPLOYEE AND DIRECTOR BENEFIT PLANS (Details 1) - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares Available for Future Grants, Beginning Balance | 831,102 | |
Shares Available for Future Grants, Options authorized | 0 | |
Shares Available for Future Grants, Options acquired | 0 | |
Shares Available for Future Grants, Options granted/vested | (36,000) | |
Shares Available for Future Grants, Options exercised | 62,402 | |
Shares Available for Future Grants, Options expired | 16,221 | |
Shares Available for Future Grants, Options forfeited | 4,252 | |
Shares Available for Future Grants, Ending Balance | 877,977 | 831,102 |
Number Of Options Outstanding, Beginning Balance | 266,436 | |
Number Of Options, authorized | 0 | |
Number Of Options, acquired | 0 | |
Number Of Options, granted/vested | 36,000 | 40,000 |
Number Of Options, Exercised | (62,402) | |
Number Of Options, Expired | (34,800) | |
Number Of Options, Forfeited | (4,252) | |
Number Of Options Outstanding, Ending Balance | 200,982 | 266,436 |
Outstanding Options, Weighted Average Exercise Price, Beginning Balance | $ 7.04 | |
Outstanding Options, Weighted Average Exercise Price, Options authorized | 0 | |
Outstanding Options, Weighted Average Exercise Price, Options acquired | 0 | |
Outstanding Options, Weighted Average Exercise Price, Options granted/vested | 8.05 | |
Outstanding Options, Weighted Average Exercise Price, Options exercised | 4.51 | |
Outstanding Options, Weighted Average Exercise Price, Options expired | 16.22 | |
Outstanding Options, Weighted Average Exercise Price, Options forfeited | 4.81 | |
Outstanding Options, Weighted Average Exercise Price, Ending Balance | $ 6.46 | $ 7.04 |
Exercisable Options, Number Outstanding, Beginning Balance | 218,720 | |
Exercisable Options, Number Outstanding, Options authorized | 0 | |
Exercisable Options, Number Outstanding, Options acquired | 0 | |
Exercisable Options, Number Outstanding, Options granted/vested | 12,800 | |
Exercisable Options, Number Outstanding, Options exercised | (62,402) | |
Exercisable Options, Number Outstanding, Options expired | (34,800) | |
Exercisable Options, Number Outstanding, Options forfeited | (4,252) | |
Exercisable Options, Number Outstanding, Ending Balance | 130,066 | 218,720 |
Exercisable Options, Weighted Average Exercise Price, Beginning Balance | $ 7.11 | |
Exercisable Options, Weighted Average Exercise Price, Options authorized | 0 | |
Exercisable Options, Weighted Average Exercise Price, Options acquired | 0 | |
Exercisable Options, Weighted Average Exercise Price, Options granted/vested | 3.39 | |
Exercisable Options, Weighted Average Exercise Price, Options exercised | 4.51 | |
Exercisable Options, Weighted Average Exercise Price, Options expired | 16.22 | |
Exercisable Options, Weighted Average Exercise Price, Options forfeited | 4.81 | |
Exercisable Options, Weighted Average Exercise Price, Ending Balance | $ 5.92 | $ 7.11 |
EMPLOYEE AND DIRECTOR BENEFIT96
EMPLOYEE AND DIRECTOR BENEFIT PLANS (Details 2) | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of options outstanding, at end of year | 200,982 |
Number of options exercisable, Outstanding at end of year | 130,066 |
Excercise Price Range One [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of options outstanding, at end of year | 144,982 |
Number of options exercisable, Outstanding at end of year | 110,066 |
Range of Exercise Prices, Lower Limit | $ / shares | $ 2.25 |
Range of Exercise Prices, Upper Limit | $ / shares | $ 7.07 |
Excercise Price Range Two [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of options outstanding, at end of year | 46,000 |
Number of options exercisable, Outstanding at end of year | 10,000 |
Range of Exercise Prices, Lower Limit | $ / shares | $ 7.08 |
Range of Exercise Prices, Upper Limit | $ / shares | $ 10.69 |
Excercise Price Range Three [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of options outstanding, at end of year | 10,000 |
Number of options exercisable, Outstanding at end of year | 10,000 |
Range of Exercise Prices, Lower Limit | $ / shares | $ 10.70 |
Range of Exercise Prices, Upper Limit | $ / shares | $ 16.22 |
EMPLOYEE AND DIRECTOR BENEFIT97
EMPLOYEE AND DIRECTOR BENEFIT PLANS (Details 3) - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Non-vested Options | ||
Non-vested options at Beginning Balance | 47,715 | |
Number Of Options, granted/vested | 36,000 | 40,000 |
Non-vested options, Vested | (12,800) | |
Non-vested options, Expired | 0 | |
Non-vested options, Forfeited | 0 | |
Non-vested options at Ending Balance | 70,915 | 47,715 |
Weighted-Average Grant Date Fair Value | ||
Non-vested, Weighted-Average Grant Date Fair Value at Beginning Balance | $ 3.62 | |
Non-vested granted, Weighted-Average Grant Date Fair Value | 4.17 | |
Non-vested vested, Weighted-Average Grant Date Fair Value | 3.39 | |
Non-vested Expired, Weighted-Average Grant Date Fair Value | 0 | |
Non-vested forfeited, Weighted-Average Grant Date Fair Value | 0 | |
Non-vested Vested, Weighted-Average Grant Date Fair Value at Ending Balance | $ 3.94 | $ 3.62 |
EMPLOYEE AND DIRECTOR BENEFIT98
EMPLOYEE AND DIRECTOR BENEFIT PLANS (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 36,000 | 40,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | $ 279,000 | $ 29,000 | $ 30,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 5 years 3 months | 3 years 5 months 12 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 4 years 3 months 29 days | 3 years 3 months 18 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 724,000 | $ 558,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | 554,000 | 493,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 333,000 | 836,000 | 81,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 43,000 | 17,000 | 21,000 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 9 months 29 days | ||
Deferred Compensation Liability, Current, Total | $ 2,300,000 | 2,100,000 | |
Proceeds from Stock Options Exercised | 527,000 | 821,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Weighted Average Grant Date Fair Value in Merger | 634,000 | ||
Deferred Profit Sharing [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Allocated Share-based Compensation Expense | $ 382,000 | 365,000 | 318,000 |
Employee Stock Ownership Plan (ESOP), Plan Description | 100% of the first 6% of an employees compensation contributed to the plan. | ||
Nonqualified Supplemental Executive Retirement Plan [Member] | Chief Executive Officer [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Defined Benefit Plan Provisions | $ 22,000 | 130,000 | 15,000 |
Defined Benefit Pension Plan, Liabilities | 306,000 | 345,000 | |
Other Postretirement Benefit Plans, Defined Benefit1 [Member] | Chief Executive Officer [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Defined Benefit Plan Provisions | 17,000 | 18,000 | 18,000 |
Defined Benefit Pension Plan, Liabilities | 326,000 | 345,000 | |
Deferral Plan [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Allocated Share-based Compensation Expense | $ 201,000 | $ 18,000 | $ 145,000 |
PARENT COMPANY FINANCIAL DATA99
PARENT COMPANY FINANCIAL DATA (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets | ||||
Cash balances with Select Bank & Trust | $ 55,714 | $ 63,409 | $ 58,410 | $ 72,869 |
Other assets | 4,863 | 6,264 | ||
Total Assets | 846,640 | 817,015 | ||
Liabilities and Shareholders’ Equity | ||||
Junior subordinated debentures | 12,400 | 12,400 | ||
Total Liabilities | 742,367 | 712,313 | ||
Shareholders’ equity: | ||||
Preferred stock | 0 | 7,645 | ||
Common stock | 11,645 | 11,583 | ||
Additional paid-in capital | 69,597 | 69,061 | ||
Retained earnings | 22,673 | 15,923 | ||
Common stock issued to deferred compensation trust | (2,340) | (2,139) | ||
Directors’ Deferred Compensation Plan Rabbi Trust | 2,340 | 2,139 | ||
Accumulated other comprehensive income | 358 | 490 | 809 | |
Total Shareholders’ Equity | 104,273 | 104,702 | ||
Total Liabilities and Shareholders’ Equity | 846,640 | 817,015 | ||
Parent Company [Member] | ||||
Assets | ||||
Cash balances with Select Bank & Trust | 314 | 126 | $ 2,990 | $ 1,268 |
Investment in Select Bank & Trust | 111,739 | 112,670 | ||
Investment in New Century Statutory Trust I | 551 | 540 | ||
Other assets | 4,239 | 3,931 | ||
Total Assets | 116,843 | 117,267 | ||
Liabilities and Shareholders’ Equity | ||||
Junior subordinated debentures | 12,372 | 12,372 | ||
Accrued interest and other liabilities | 198 | 193 | ||
Total Liabilities | 12,570 | 12,565 | ||
Shareholders’ equity: | ||||
Preferred stock | 0 | 7,645 | ||
Common stock | 11,645 | 11,583 | ||
Additional paid-in capital | 69,597 | 69,061 | ||
Retained earnings | 22,673 | 15,923 | ||
Common stock issued to deferred compensation trust | (2,340) | (2,139) | ||
Directors’ Deferred Compensation Plan Rabbi Trust | 2,340 | 2,139 | ||
Accumulated other comprehensive income | 358 | 490 | ||
Total Shareholders’ Equity | 104,273 | 104,702 | ||
Total Liabilities and Shareholders’ Equity | $ 116,843 | $ 117,267 |
PARENT COMPANY FINANCIAL DAT100
PARENT COMPANY FINANCIAL DATA (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Income Statements, Captions [Line Items] | |||
Income tax benefit | $ (3,647) | $ (3,418) | $ (1,437) |
Net income | 6,754 | 6,553 | 2,357 |
Parent Company [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Equity in earnings of subsidiaries | (788) | 6,836 | 2,715 |
Dividends from subsidiaries | 8,195 | 257 | 0 |
Operating expense | (793) | (814) | (526) |
Income tax benefit | 140 | 274 | 168 |
Net income | $ 6,754 | $ 6,553 | $ 2,357 |
PARENT COMPANY FINANCIAL DAT101
PARENT COMPANY FINANCIAL DATA (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 6,754 | $ 6,553 | $ 2,357 |
Stock based compensation | 71 | 39 | 91 |
Net change in other assets | 1,328 | (313) | 538 |
CASH FLOW FROM INVESTING ACTIVITIES | |||
Cash received from acquisition | 0 | 21,229 | 15,406 |
CASH FLOW FROM FINANCING ACTIVITIES | |||
Dividends | (4) | (77) | (38) |
Net increase (decrease) in cash and cash equivalents | (7,695) | 4,999 | (14,459) |
CASH AND CASH EQUIVALENTS, BEGINNING | 63,409 | 58,410 | 72,869 |
CASH AND CASH EQUIVALENTS, ENDING | 55,714 | 63,409 | 58,410 |
Parent Company [Member] | |||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | 6,754 | 6,553 | 2,357 |
Equity in undistributed income of subsidiaries | 788 | (6,836) | (2,715) |
Stock based compensation | 71 | 39 | 91 |
Net change in other assets | (308) | (3,375) | (272) |
Net change in other liabilities | 5 | 11 | 25 |
Net cash used in operating activities | 7,310 | (3,608) | (514) |
CASH FLOW FROM INVESTING ACTIVITIES | |||
Cash received from acquisition | 0 | 0 | 2,056 |
Redemption of preferred stock | (7,645) | 0 | 0 |
Net cash used in investing activities | (7,645) | 0 | 2,056 |
CASH FLOW FROM FINANCING ACTIVITIES | |||
Proceeds from stock option exercises | 527 | 821 | 218 |
Dividends | (4) | (77) | (38) |
Net cash provided by financing activities | 523 | 744 | 180 |
Net increase (decrease) in cash and cash equivalents | 188 | (2,864) | 1,722 |
CASH AND CASH EQUIVALENTS, BEGINNING | 126 | 2,990 | 1,268 |
CASH AND CASH EQUIVALENTS, ENDING | $ 314 | $ 126 | $ 2,990 |
CAPITAL TRANSACTIONS (Details T
CAPITAL TRANSACTIONS (Details Textual) - USD ($) $ in Thousands | Aug. 09, 2011 | Jul. 25, 2014 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 |
Capital Transaction [Line Items] | |||||
Common Stock, Shares, Outstanding | 11,645,413 | 11,583,011 | |||
Stock Issued During Period, Shares, Issued for Services | 7,645 | ||||
Stock Issued During Period, Value, Issued for Services | $ 7,645 | ||||
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 | |||
Common Stock [Member] | |||||
Capital Transaction [Line Items] | |||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 2,418,347 | 4,416,500 | |||
Common Stock, Capital Shares Reserved for Future Issuance | 370,278 | ||||
Business Acquisition, Equity Interest Issued or Issuable, Basis for Determining Value | in connection with the acquisition, based on an exchange ratio of 1.8264 shares for each outstanding share of Legacy Select common stock | ||||
Legacy Select [Member] | Common Stock [Member] | |||||
Capital Transaction [Line Items] | |||||
Common Stock, Shares, Outstanding | 202,842 | ||||
Series A Preferred Stock [Member] | Legacy Select [Member] | |||||
Capital Transaction [Line Items] | |||||
Preferred Stock, Dividend Payment Rate, Variable | the quarterly dividend rate fluctuates between an annualized rate of 1% to 5% | ||||
Preferred Stock, Dividend Payment Terms | Following the 4.5-year anniversary of the initial investment, the dividend rate on the Series A stock is increased to 9% per annum. | ||||
Preferred Stock, Dividend Rate, Percentage | 1.00% | ||||
Series A Preferred Stock [Member] | Legacy Select [Member] | Maximum [Member] | |||||
Capital Transaction [Line Items] | |||||
Preferred Stock, Dividend Rate, Percentage | 7.00% | ||||
Series A Preferred Stock [Member] | Legacy Select [Member] | Minimum [Member] | |||||
Capital Transaction [Line Items] | |||||
Preferred Stock, Dividend Rate, Percentage | 1.00% |