Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 02, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Southern National Bancorp of Virginia Inc | |
Entity Central Index Key | 1,325,670 | |
Trading Symbol | sona | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 24,052,253 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | [1] |
Cash and cash equivalents: | |||
Cash and due from financial institutions | $ 8,457 | $ 7,937 | |
Interest-bearing deposits in other financial institutions | 21,786 | 15,815 | |
Federal funds sold | 4,220 | 1,711 | |
Total cash and cash equivalents | 34,463 | 25,463 | |
Securities available for sale, at fair value | 144,928 | 160,673 | |
Securities held to maturity, at amortized cost (fair value of $89,051 and $97,597, respectively) | 93,865 | 98,912 | |
Total loans | 2,161,406 | 2,062,328 | |
Less allowance for loan losses | (11,451) | (9,397) | |
Net loans | 2,149,955 | 2,052,931 | |
Stock in Federal Reserve Bank and Federal Home Loan Bank | 22,870 | 26,775 | |
Equity investment in mortgage affiliate | 4,525 | 4,723 | |
Preferred investment in mortgage affiliate | 3,305 | 3,305 | |
Bank premises and equipment, net | 33,251 | 35,788 | |
Goodwill | 101,954 | 100,606 | |
Core deposit intangibles, net | 8,971 | 10,054 | |
FDIC indemnification asset | 826 | 1,353 | |
Bank-owned life insurance | 62,679 | 50,790 | |
Other real estate owned | 5,589 | 7,577 | |
Deferred tax assets, net | 17,648 | 16,903 | |
Other assets | 17,713 | 18,399 | |
Total assets | 2,702,542 | 2,614,252 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Noninterest-bearing demand deposits | 339,484 | 319,189 | |
Interest-bearing deposits: | |||
NOW accounts | 314,509 | 329,878 | |
Money market accounts | 307,882 | 355,084 | |
Savings accounts | 156,399 | 161,947 | |
Time deposits | 906,038 | 699,058 | |
Total interest-bearing deposits | 1,684,828 | 1,545,967 | |
Total deposits | 2,024,312 | 1,865,156 | |
Securities sold under agreements to repurchase - short term | 19,431 | 15,468 | |
Federal Home Loan Bank (FHLB) advances - short term | 242,115 | 335,615 | |
Junior subordinated debt - long term | 9,571 | 9,534 | |
Senior subordinated notes - long term | 47,099 | 47,128 | |
Other liabilities | 19,170 | 18,579 | |
Total liabilities | 2,361,698 | 2,291,480 | |
Commitments and contingencies (See Note 6) | |||
Stockholders' equity: | |||
Preferred stock, $.01 par value. Authorized 5,000,000 shares; no shares issued and outstanding | |||
Common stock, $0.01 par value. Authorized 45,000,000 shares; 24,051,753 and 23,936,453 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively | 240 | 239 | |
Additional paid in capital | 305,583 | 304,932 | |
Retained earnings | 39,205 | 18,753 | |
Accumulated other comprehensive loss | (4,184) | (1,152) | |
Total stockholders' equity | 340,844 | 322,772 | |
Total liabilities and stockholders' equity | $ 2,702,542 | $ 2,614,252 | |
[1] | Derived from audited consolidated financial statements |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Securities held to maturity fair value (in dollars) | $ 89,051 | $ 97,597 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 45,000,000 | 45,000,000 |
Common stock, shares issued | 24,051,753 | 23,936,453 |
Common stock, shares outstanding | 24,051,753 | 23,936,453 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Interest and dividend income: | ||||
Interest and fees on loans | $ 27,952 | $ 26,726 | $ 81,554 | $ 51,819 |
Interest and dividends on taxable securities | 1,438 | 1,464 | 4,320 | 2,620 |
Interest and dividends on tax exempt securities | 158 | 159 | 477 | 333 |
Interest and dividends on other earning assets | 493 | 458 | 1,372 | 829 |
Interest on federal funds sold | 13 | 4 | 34 | 4 |
Total interest and dividend income | 30,054 | 28,811 | 87,757 | 55,605 |
Interest expense: | ||||
Interest on deposits | 4,993 | 3,391 | 12,073 | 7,809 |
Interest on repurchase agreements | 24 | 12 | 70 | 13 |
Interest on junior subordinated debt | 150 | 120 | 425 | 129 |
Interest on senior subordinated notes | 713 | 712 | 2,136 | 1,483 |
Interest on other borrowings | 1,586 | 726 | 4,791 | 1,225 |
Total interest expense | 7,466 | 4,961 | 19,495 | 10,659 |
Net interest income | 22,588 | 23,850 | 68,262 | 44,946 |
Provision for loan losses | 1,050 | 5,250 | 3,700 | 6,850 |
Net interest income after provision for loan losses | 21,538 | 18,600 | 64,562 | 38,096 |
Noninterest income: | ||||
Account maintenance and deposit service fees | 1,398 | 1,518 | 4,181 | 2,098 |
Income from bank-owned life insurance | 593 | 305 | 1,463 | 631 |
Equity loss from mortgage affiliate | (72) | (83) | (198) | (450) |
Gain (loss) on sales of investment securities | (2) | 255 | ||
Other | 719 | 561 | 2,824 | 580 |
Total noninterest income | 2,638 | 2,299 | 8,270 | 3,114 |
Noninterest expenses: | ||||
Salaries and benefits | 7,080 | 7,746 | 20,859 | 13,750 |
Occupancy expenses | 1,660 | 1,703 | 4,966 | 3,338 |
Furniture and equipment expenses | 620 | 907 | 2,129 | 1,401 |
Amortization of core deposit intangible | 360 | 360 | 1,083 | 483 |
Virginia franchise tax expense | 491 | 364 | 1,347 | 605 |
FDIC assessment | 159 | 186 | 814 | 391 |
Data processing expense | 475 | 440 | 1,405 | 858 |
Telephone and communication expense | 465 | 567 | 1,560 | 912 |
Amortization of FDIC indemnification asset | 177 | 173 | 527 | 540 |
Net (gain) loss on other real estate owned | (99) | (106) | 61 | 213 |
Merger expenses | 168 | 9,094 | ||
Other operating expenses | 1,727 | 1,928 | 5,600 | 3,745 |
Total noninterest expenses | 13,115 | 14,436 | 40,351 | 35,330 |
Income before income taxes | 11,061 | 6,463 | 32,481 | 5,880 |
Income tax expense | 2,200 | 2,089 | 6,494 | 2,294 |
Net income | 8,861 | 4,374 | 25,987 | 3,586 |
Other comprehensive income (loss): | ||||
Unrealized gain (loss) on available for sale securities | (846) | 242 | (3,559) | 323 |
Realized amount on securities sold, net | 2 | (255) | ||
Accretion of amounts previously recorded upon transfer to held to maturity from available for sale | 4 | 3 | 10 | 9 |
Net unrealized gain (loss) | (842) | 247 | (3,549) | 77 |
Tax effect | 177 | (84) | 746 | (26) |
Other comprehensive income (loss) | (665) | 163 | (2,803) | 51 |
Comprehensive income | $ 8,196 | $ 4,537 | $ 23,184 | $ 3,637 |
Earnings per share, basic (in dollars per share) | $ 0.37 | $ 0.18 | $ 1.08 | $ 0.22 |
Earnings per share, diluted (in dollars per share) | $ 0.36 | $ 0.18 | $ 1.07 | $ 0.21 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - 9 months ended Sep. 30, 2018 - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total | |
Balance at Dec. 31, 2017 | $ 239 | $ 304,932 | $ 18,753 | $ (1,152) | $ 322,772 | [1] |
Comprehensive income: | ||||||
Net income | 25,987 | 25,987 | ||||
Changes in other comprehensive loss on investment securities (net of tax, $(746), and accretion of $10) | (2,803) | (2,803) | ||||
Dividends on common stock ($0.24 per share) | (5,764) | (5,764) | ||||
Issuance of common stock under Stock Incentive Plan (115,300 shares, net) | 1 | 324 | 325 | |||
Reclassification adjustment from accumulated other comprehensive income to retained earnings for adoption of ASU 2018-02 | 229 | (229) | (229) | |||
Stock-based compensation expense | 327 | 327 | ||||
Balance at Sep. 30, 2018 | $ 240 | $ 305,583 | $ 39,205 | $ (4,184) | $ 340,844 | |
[1] | Derived from audited consolidated financial statements |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parentheticals) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($)$ / sharesshares | |
Statement Of Stockholders Equity [Abstract] | |
Tax on change in unrealized loss on securities available for sale | $ (746) |
Accretion on change in unrecognized loss on securities held to maturity, portion of OTTI | $ 10 |
Common stock dividends per share (in dollars per share) | $ / shares | $ 0.24 |
Issuance of common shares under Stock Incentive Plan (in shares) | shares | 115,300 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | ||
Operating activities: | |||
Net income | $ 25,987 | $ 3,586 | |
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities: | |||
Depreciation | 2,446 | 1,282 | |
Amortization of core deposit intangible | 1,083 | 483 | |
Other amortization, net | 1,997 | 633 | |
Accretion of loan discount | (3,673) | (2,321) | |
Amortization of FDIC indemnification asset | 527 | 540 | |
Provision for loan losses | 3,700 | 6,850 | |
Earnings on bank-owned life insurance | (1,113) | (631) | |
Equity loss on mortgage affiliate | 198 | 450 | |
Stock-based compensation expense | 327 | 185 | |
Gain on sales of investment securities | (255) | ||
Gain on bank-owned life insurance death benefit | (350) | ||
Net loss on other real estate owned | 61 | 213 | |
Net decrease in other assets | 979 | 2,237 | |
Net decrease in other liabilities | (407) | (851) | |
Net cash and cash equivalents provided by operating activities | 31,762 | 12,401 | |
Investing activities: | |||
Purchase of federal funds sold | (623) | ||
Proceeds from sales of investment securities | 4,767 | ||
Purchases of held to maturity investment securities | (9,950) | ||
Purchases of available for sale investment securities | (1,747) | ||
Proceeds from paydowns, maturities and calls of available for sale investment securities | 11,073 | 3,950 | |
Proceeds from paydowns, maturities and calls of held to maturity investment securities | 4,701 | 9,752 | |
Loan originations and payments, net | (97,621) | (51,059) | |
Distribution from mortgage affiliate | 48 | ||
Net decrease (increase) in stock in Federal Reserve Bank and Federal Home Loan Bank | 3,905 | (9,413) | |
Purchase of bank-owned life insurance | (12,000) | ||
Proceeds from bank-owned life insurance death benefit | 1,574 | ||
Improvements on other real estate owned | 52 | ||
Proceeds from sales of other real estate owned | 1,875 | 1,006 | |
Proceeds from sales of bank premise and equipment and assets held for sale | 2,136 | ||
Purchases of bank premises and equipment | (2,045) | (750) | |
Acquisition of Eastern Virginia Bankshares, Inc. | (10) | ||
Cash acquired in acquisition of Eastern Virginia Bankshares, Inc. | 24,025 | ||
Net cash and cash equivalents used in investing activities | (86,350) | (30,004) | |
Financing activities: | |||
Net increase (decrease) in deposits | 158,564 | (149,119) | |
Cash dividends paid on common stock | (5,764) | (3,885) | |
Issuance of common stock for warrants exercised | 449 | ||
Issuance of common stock under Stock Incentive Plan | 325 | 371 | |
Issuance of subordinated notes, net of cost | 26,075 | ||
Net (decrease) increase in short-term borrowings | (89,537) | 119,640 | |
Net cash and cash equivalents provided (used) by financing activities | 63,588 | (6,469) | |
Increase (decrease) in cash and cash equivalents | 9,000 | (24,072) | |
Cash and cash equivalents at beginning of period | 25,463 | [1] | 47,392 |
Cash and cash equivalents at end of period | 34,463 | 23,320 | |
Cash payments for: | |||
Interest | 18,140 | 9,231 | |
Income taxes | $ 6,672 | 2,390 | |
Supplemental schedule of noncash investing and financing activities | |||
Assets acquired, excluding cash and cash equivalents of $24,025 | 1,346,573 | ||
Liabilities assumed | $ 1,258,164 | ||
[1] | Derived from audited consolidated financial statements |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Thousands | Dec. 31, 2017USD ($) |
Statement of Cash Flows [Abstract] | |
Cash and cash equivalents, acquired | $ 24,025 |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
ACCOUNTING POLICIES | 1. ACCOUNTING POLICIES Southern National Bancorp of Virginia, Inc. (“Southern National” or “SNBV” or the “Company”) is a corporation that was formed on July 28, 2004 under the laws of the Commonwealth of Virginia and is the holding company for Sonabank (“Sonabank” or the “Bank”) a Virginia state-chartered bank which commenced operations on April 14, 2005. As of the close of business on June 23, 2017, SNBV completed its previously announced merger of Eastern Virginia Bankshares, Inc. (“EVBS”) with and into SNBV and the completion of the merger of EVBS’s wholly-owned subsidiary, EVB, with and into SNBV’s wholly-owned subsidiary, Sonabank (see Note 2 - Business Combinations). This combination has brought together two banking companies with complementary business lines, creating one of the premier banking institutions headquartered in the Commonwealth of Virginia. EVBS was the holding company for EVB, a Virginia state-chartered bank which traced its beginnings to 1910. Sonabank provides a range of financial services to individuals and small and medium sized businesses. At September 30, 2018, Sonabank had thirty-eight full-service retail branches in Virginia, located in the counties of Chesterfield (2), Essex (2), Fairfax (Reston, McLean and Fairfax), Gloucester (2), Hanover (3), King William, Lancaster, Middlesex (3), New Kent, Northumberland (3), Southampton, Surry, Sussex, and in Charlottesville, Clifton Forge, Colonial Heights, Front Royal, Hampton, Haymarket, Leesburg, Middleburg, New Market, Newport News, Richmond, South Riding, Warrenton, and Williamsburg, and seven full-service retail branches in Maryland, located in Rockville, Shady Grove, Bethesda, Upper Marlboro, Brandywine, Owings and Huntingtown. The consolidated financial statements include the accounts of Southern National and its subsidiaries Sonabank and EVB Statutory Trust I (the “Trust”). Significant inter-company accounts and transactions have been eliminated in consolidation. Southern National consolidates subsidiaries in which it holds, directly or indirectly, more than 50 percent of the voting rights or where it exercises control. Entities where Southern National holds 20 to 50 percent of the voting rights, or has the ability to exercise significant influence, or both, are accounted for under the equity method. Southern National has an interest in one affiliate, Southern Trust Mortgage, LLC (“STM”), which it accounts for as an equity method investment. In addition, Southern National owns the Trust which is an unconsolidated subsidiary. The junior subordinated debt owed to the Trust is reported as a liability of Southern National. The unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and instructions for Form 10-Q and follow general practice within the banking industry. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. However, in the opinion of management, all adjustments (consisting only of normal recurring accruals) necessary for a fair presentation of the results of the interim periods presented have been made. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year. For further information, refer to the consolidated financial statements and footnotes thereto included in Southern National’s Form 10-K for the year ended December 31, 2017. Revenue from Contracts with Customers Southern National records revenue from contracts with customers in accordance with Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, we must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) we satisfy a performance obligation. Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods. Our primary sources of revenue are derived from financial instruments, namely loans, investment securities, and other financial instruments that are not within the scope of Topic 606. We have evaluated the nature of the Company’s contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income and Comprehensive Income was not necessary. Southern National generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers. Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the carrying value of investment securities, other than temporary impairment of investment securities, the valuation of goodwill and intangible assets, the FDIC indemnification asset, other real estate owned (“OREO”), deferred tax assets, and fair value measurements related to assets acquired and liabilities assumed from business combinations. Recent Accounting Pronouncements Adoption of New Accounting Standards: In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue From Contracts With Customers (Topic 606). These amendments affect any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g. insurance contracts or lease contracts). This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance, and creates a Topic 606, Revenue from Contracts with Customers. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The ASU allows for either full retrospective or modified retrospective adoption. The new guidance became effective for interim and annual reporting periods beginning after December 15, 2017. Our revenue is balanced between net interest income on financial assets and liabilities, which is explicitly excluded from the scope of the new standard, and noninterest income. The Company’s revenue recognition pattern for revenue streams within the scope of ASU 2014-09, include service charges on deposit accounts, investment services income and card interchange fees, which did not materially change from its prior practice. The Company adopted ASU No. 2014-09 on January 1, 2018 utilizing the modified retrospective approach. In January 2016, the FASB issued ASU 2016-01, Financial Instruments Overall (Topic 825): Recognition and Measurement of Financial Assets and Financial Liabilities . The amendments in ASU 2016-01: (a) require equity investments (except for those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; (b) simplify the impairment assessment of equity securities without readily determinable fair values by requiring a qualitative assessment to identify impairment; (c) eliminate the requirement for public business entities to disclose the method and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (d) require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (e) require an entity to present separately in other comprehensive income, the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; (f) require separate presentation of financial assets and financial liabilities by measurement category and form of financial assets on the balance sheet or the notes to the financial statements; and (g) clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available for sale securities in combination with the entity’s other deferred tax assets. The amendments in this ASU became effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of ASU 2016-01 on January 1, 2018 did not have a material impact on the Company's consolidated financial statements. In accordance with (d) above, the Company measured fair value of its net loans, certificates of deposits, junior subordinated debt, and senior subordinated notes as of September 30, 2018 using an exit price notion (see Note 8 Fair Value ). In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments . Before ASU 2016-15 GAAP was unclear or did not include specific guidance on how to classify certain transactions in the statement of cash flows. This ASU reduced diversity in practice in how eight particular transactions are classified in the statement of cash flows. ASU No. 2016-15 became effective for interim and annual reporting periods beginning after December 15, 2017. Entities are required to apply the guidance retrospectively. If it is impracticable to apply the guidance retrospectively for an issue, the amendments related to that issue would be applied prospectively. The Company adopted ASU 2016-15 on January 1, 2018. ASU 2016-15 did not have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business , which was intended to provide guidance in evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses in order to provide stakeholders with more detailed reporting and less cost to analyze transactions. This ASU provide d a screen to determine when a set of assets is not a business. It require d that when substantially all fair value of gross assets acquired (or disposed of) is concentrated in a single identifiable asset or group of similar identifiable assets, the set of assets is not a business. If the screen is not met, the amendments in this update provide d a framework to assist entities in evaluating whether both an input and a substantive process are present for the set to be a business. ASU 2017-01 became effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. The Company adopted ASU 2017-01 on January 1, 2018 and it did not have a material impact on the Company’s consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718) , Scope of Modification Accounting . These amendments provide guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic 718. The guidance is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company adopted ASU 2017-09 on January 1, 2018 and it did not have a material impact of the Company’s consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220); Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The amendments in this ASU require a reclassification from/to accumulated other comprehensive income and to/from retained earnings for stranded tax effects resulting from the change in the newly enacted federal corporate income tax rate. Consequently, the amendments in this ASU eliminates the stranded tax effects associated with the change in the federal corporate income tax rate in the Tax Cuts and Jobs Act of 2017. The amendments in this ASU are effective for all entities for fiscal years beginning after December 15, 2018 with early adoption allowed. Southern National adopted this ASU 2018-02 during the first quarter of 2018. The effect of the adoption of this ASU increased accumulated other comprehensive loss by $229 thousand with the offset to retained earnings as recorded in the statement of changes in stockholders’ equity. This represents the difference between the historical federal corporate income tax rate and the newly enacted 21 percent federal corporate income tax rate. New Accounting Standards Not Yet Adopted: In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The FASB issued this ASU to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet by lessees for those leases classified as operating leases under current U.S. GAAP and disclosing key information about leasing arrangements. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases, which updates narrow aspects of the guidance issued in ASU 2016-02. The amendments in this ASU are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. Early a doption of this ASU is permitted for all entities. The guidance is effective for us on January 1, 2019. Upon adoption, m anagement anticipates to recogniz e a right-of-use asset and a lease liability associated with its long-term operating leases and is in the process of inventorying and categorizing its lease agreements. We are still evaluating the full impact of this ASU to our disclosures. In June 2016 , the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"), which sets forth a “current expected credit loss” ("CECL") model requiring the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. For public business entities that are U.S. Securities and Exchange Commission filers, the amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Southern National has engaged a third-party to collect data that will be needed to produce historical inputs into any models created as a result of adopting this ASU . We are currently assessing the impact of the adoption of this ASU on our consoli dated financial statements. In January 2017, the FASB issued ASU 2017-04 , Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ("ASU 2017-04") , which eliminates the second step of the previous FASB guidance for testing goodwill for impairment and is intended to reduce cost and complexity of goodwill impairment testing. The amendments in this ASU modify the concept of impairment from the condition that exists when the carrying amount of goodwill exceeds its implied fair value to the condition that exists when the carrying amount of a reporting unit exceeds its fair value. After determining if the carrying amount of a reporting unit exceeds its fair value, the entity should take an impairment charge of the same amount to the goodwill for that reporting unit, not to exceed the total goodwill amount for that reporting unit. ASU 2017-04 is effective for annual periods beginning after December 15, 2019, including interim periods within those annual periods. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. Southern National is currently evaluating the impact of adopting the new guidance on its consolidated financial statements. In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities, which shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 is effective for public entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Southern National is currently reviewing its portfolio of debt securities to determine the impact that this ASU will have on its consolidated financial statements. In July 2018, the FASB issued ASU 2018-09, Codification Improvements . This ASU makes changes to a variety of topics to clarify, correct errors in, or make minor improvements to the Accounting Standards Codification. The majority of the amendments in ASU 2018-09 will be effective for the Company for fiscal years beginning after December 15, 2018. Southern National expects to adopt ASU 2018-09 in the first quarter of 2019 and is evaluating the impact of the standard, but does not expect the guidance to have a material effect on its financial statements. In August 2018, FASB issued ASU 2018-13, Fair Value measurement (Topic 820) . This ASU adds, eliminates and modifies certain disclosure requirements for fair value measurements. The amendments in ASU 2018-13 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 201 9 . Early adoption is permitted . The disclosures are effective using the prospective method for certain disclosures and retrospective for majority of the disclosures. Southern National is currently in the process of evaluating the impact of adopting the new guidance on its consolidated financial statements and disclosures. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | 2. BUSINESS COMBINATIONS On June 23, 2017, SNBV completed its acquisition of EVBS and its subsidiaries, the Trust and EVB. Pursuant to the Agreement and Plan of Merger, dated December 13, 2016, as amended, holders of EVBS common stock received 0.6313 shares of SNBV common stock for each outstanding share of EVBS common stock held immediately prior to the effective time of the Merger and holders of Non-Voting Mandatorily Convertible Non-Cumulative Preferred Stock, Series B of EVBS (“EVBS Series B Preferred Stock”) received 0.6313 shares of SNBV common stock for each share of EVBS Series B Preferred Stock held immediately prior to the effective time of the Merger, which totaled approximately $198.9 million based on SNBV’s closing common stock price on June 23, 2017 of $17.21 per share. EVBS was a bank holding company organized and chartered under the laws of the Commonwealth of Virginia on September 5, 1997, commenced operations on December 29, 1997 and was headquartered in Glen Allen, Virginia. EVBS operated twenty-four retail branches, which served diverse markets that primarily are in the counties of Essex, Gloucester, Hanover, Henrico, King and Queen, King William, Lancaster, Middlesex, New Kent, Northumberland, Southampton, Surry, Sussex and the cities of Colonial Heights, Hampton, Newport News, Richmond and Williamsburg. SNBV accounted for the acquisition using the acquisition method of accounting in accordance with FASB Accounting Standards Codification (“ASC”) 805, “Business Combinations.” Under the acquisition method of accounting, the assets and liabilities of EVBS were recorded at their respective acquisition date fair values. Determining the fair value of assets and liabilities, particularly related to the loan portfolio, is a complicated process involving significant judgment regarding methods and assumptions used to calculate the estimated fair values. After recognition of all measurement period adjustments, SNBV recognized goodwill of $ 91.5 million in connection with the acquisition, none of which is deductible for income tax purposes. The following table details the total consideration paid by SNBV on June 23, 2017 in connection with the acquisition of EVBS, the fair values of the assets acquired and liabilities assumed, and the resulting goodwill. As Recorded Fair Value As Recorded (dollars in thousands) (unaudited) by EVBS Adjustments by the Company Consideration paid: Cash $ 10 SNBV common stock 198,909 Total consideration paid $ 198,919 Identifiable assets acquired: Cash and due from banks $ 4,350 $ - $ 4,350 Interest bearing deposits with banks 18,993 - 18,993 Federal funds sold 682 - 682 Securities available for sale, at fair value 163,029 (150) 162,879 Securities held to maturity, at carrying value 19,036 508 19,544 Restricted securities, at cost 6,734 - 6,734 Loans 1,045,600 (14,188) 1,031,412 Loans held for sale 19,689 - 19,689 Deferred income taxes 15,735 4,912 20,647 Bank premises and equipment 24,242 4,158 28,400 Assets held for sale 2,970 (884) 2,086 Accrued interest receivable 4,272 - 4,272 Other real estate owned 563 (1) 562 Core deposit intangible 435 9,590 10,025 Bank owned life insurance 26,035 - 26,035 Other assets 10,004 - 10,004 Total identifiable assets acquired 1,362,369 3,945 1,366,314 Identifiable liabilities assumed: Noninterest-bearing demand accounts 226,637 - 226,637 Interest-bearing deposits 920,743 1,182 921,925 Federal funds purchased and repurchase agreements 7,598 - 7,598 Federal Home Loan Bank advances 57,475 - 57,475 Junior subordinated debt 10,310 (801) 9,509 Senior subordinated notes 19,175 1,876 21,051 Accrued interest payable 902 - 902 Other liabilities 12,748 1,000 13,748 Total identifiable liabilities assumed 1,255,588 3,257 1,258,845 Net identifiable assets acquired $ 106,781 $ 688 $ 107,469 Goodwill resulting from acquisition $ 91,450 The net effect of the amortization and accretion of premiums and discounts associated with the Company’s acquisition accounting adjustments to assets acquired and liabilities assumed from EVBS had the following impact on the consolidating statements of income during the nine months ended September 30, 2018: For the Nine Months Ended (dollars in thousands) September 30, 2018 Loans (1) $ 2,743 Time deposits (2) 592 Junior and senior subordinated debt (3) 63 Core deposit intangible (4) (940) Net impact to income before income taxes $ 2,458 (1) Loan discount accretion is included in the “Interest and fees on loans” section of “Interest and dividend income” in the Consolidated Statements of Income and Comprehensive Income. (2) Time deposit premium amortization is included in the "Interest on deposits" section of "Interest expense" in the Consolidated Statements of Income and Comprehensive Income . (3) The junior subordinated debt discount accretion and senior subordinated notes premium amortization are included in the “Interest on junior subordinated debt” and “Interest on senior subordinated notes” section of “Interest expense”, respectively, in the Consolidated Statements of Income and Comprehensive Income. (4) Core deposit intangible premium amortization is included in the "Amortization of core deposit intangible" section of "Noninterest expenses" in the Consolidated Statements of Income and Comprehensive Income . Fair values of the major categories of assets acquired and liabilities assumed were determined as follows: Loans : The acquired loans were recorded at fair value at the acquisition date of $1.03 billion without carryover of EVBS’s allowance for loan losses. The unpaid principal balance and discount at the merger date were $1.05 billion and $21.4 million, respectively. Where loans exhibited characteristics of performance, fair value was determined based on a discounted cash flow analysis which included default estimates; loans without such characteristics, fair value was determined based on the estimated values of the underlying collateral. While estimating the amount and timing of both principal and interest cash flows expected to be collected, a market-based discount rate was applied. In this regard, the acquired loans were segregated into pools based on loan type and credit risk. Loan type was determined based on collateral type and purpose, industry segment and loan structure. Credit risk characteristics included risk rating groups pass, special mention and substandard and lien position. For valuation purposes, these pools were further disaggregated by maturity and pricing characteristics (e.g., fixed-rate, adjustable-rate, balloon maturities). Included in the $1.05 billion of acquired loans were certain loans acquired with deteriorating credit quality, or purchased credit impaired loans. The table below summarizes the purchased credit impaired loans acquired in the EVBS acquisition on June 23, 2017 (in thousands): Purchased Credit Impaired Loans Contractually required principal and interest at acquisition $ 17,970 Contractual cash flows not expected to be collected (nonaccretable difference) (6,243) Expected cash flows at acquisition 11,727 Accretable difference 398 Basis in acquired loans at acquisition - estimated fair value $ 11,329 Loans Held for Sale : The $19.7 million of acquired loans held for sale were recorded at fair value at the acquisition date. Acquired loans held for sale represent the potentially credit-impaired loans that were moved out of the held for investment portfolio and marked to fair value by EVBS just prior to the closing of the merger. Fair value was determined using quoted prices from an independent, third party buyer. Subsequent to the acquisition date, acquired loans held for sale were sold to an independent third party. Premises and Equipment and Assets Held for Sale : The fair value of EVBS’s premises, including land, buildings and improvements, was determined based upon appraisal by licensed appraisers or sales contracts. These appraisals were based upon the best and highest use of the property with final values determined based upon an analysis of the cost, sales comparison and income capitalization approaches for each property appraised. The fair value of bank-owned real estate resulted in a net premium of $3.3 million. Land is not depreciated. Core Deposit Intangible : The fair value of the core deposit intangible (“CDI”) was determined based on a combined discounted economic benefit and market approach. The economic benefit was calculated as the cost savings between maintaining the core deposit base and using an alternate funding source, such as FHLB advances. The life of the deposit base and projected deposit attrition rates was determined using EVBS's historical deposit data. The CDI was estimated at $10.0 million or 0.9% of total deposits. The CDI is being amortized over a weighted average life of 96 months using the straight-line method . Time Deposits : The fair value of time deposits was determined based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. The resulting estimated fair value adjustment of time deposits is a $1.2 million premium and is being amortized over the weighted average remaining life of approximately 18 months using the straight-line method . FHLB Advances : The fair value of FHLB advances was considered to be equivalent to EVBS’s recorded book balance as the advances mature in 90 days or less. Junior Subordinated Debt and Senior Subordinated Notes: The fair value of the junior subordinated debt and senior subordinated notes were based on discounted cash flows using rates for securities with similar terms. The resulting estimated fair value adjustment of junior subordinated debt is a $801 thousand discount and is being accreted over the remaining life of approximately 195 months using the straight-line method. The resulting estimated fair value adjustment of senior subordinated notes is a $1.1 million premium and is being amortized over the remaining life of approximately 95 months using the straight-line method. Deferred Income Taxes : Certain deferred tax assets and liabilities were carried over to SNBV from EVBS based on the Company’s ability to utilize them in the future. Additionally, deferred tax assets and liabilities were established for acquisition accounting fair value adjustments as the future amortization/accretion of these adjustments represent temporary differences between book income and taxable income. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2018 | |
STOCK-BASED COMPENSATION [Abstract] | |
STOCK-BASED COMPENSATION | 3. STOCK-BASED COMPENSATION In 2004, the Board of Directors adopted a stock option plan that authorized the reservation of up to 302,500 shares of common stock and provided for the granting of stock options to certain directors, officers and employees. The 2010 Stock Awards and Incentive Plan (the “2010 Plan”) was approved by the Board of Directors in January 2010 and approved by the stockholders at the Annual Meeting in April 2010. The 2010 Plan authorized the reservation of an additional 700,000 shares of common stock for the granting of stock awards. The options granted to officers and employees are incentive stock options and the options granted to non-employee directors are non-qualified stock options. The purpose of the plan is to afford key employees an incentive to remain in the employ of Southern National and to assist in the attracting and retaining of non-employee directors by affording them an opportunity to share in Southern National’s future success. Under the plan, the option’s price cannot be less than the fair market value of the stock on the grant date. The maximum term of the options is ten years and options granted may be subject to a graded vesting schedule. At the June 21, 2017 Annual Meeting of Stockholders of Southern National, the 2017 Equity Compensation Plan (the “2017 Plan”) was approved as recommended by the Board of Directors. The 2017 Plan replaces the 2010 Plan and has a maximum number of 750,000 shares reserved for issuance. The purpose of the 2017 Plan is to promote the success of the Company by providing greater incentive to employees, non-employee directors, consultants and advisors to associate their personal interests with the long-term financial success of the Company, including its subsidiaries, and with growth in stockholder value, consistent with the Company’s risk management practices. Because the 2017 Plan was approved, shares under the 2004 stock-option plan or 2010 Plan will no longer be awarded. A total of 58,000 stock options were exercised during the first nine months of 2018. Southern National granted 58,000 shares of restricted stock during the first nine months of 2018. A total of 700 shares of restricted stock issued in 2017 were forfeited during the first quarter of 2018 due to the employee who was granted the restricted shares leaving the Company before the shares had vested. For the three and nine months ended September 30, 2018, stock-based compensation expense was $158 thousand and $327 thousand, respectively. That compares to $84 thousand and $185 thousand for the same periods in 2017, respectively. As of September 30, 2018, unrecognized compensation expense associated with the stock options was $114 thousand, which is expected to be recognized over a weighted average period of 1.8 years. A summary of the activity in the stock option plan during the nine months ended September 30, 2018 follows: Weighted Weighted Average Aggregate Average Remaining Intrinsic Exercise Contractual Value Shares Price Term (in thousands) Options outstanding, beginning of period 714,967 $ 9.83 Granted - - Forfeited (6,731) 10.16 Exercised (58,000) 7.62 Options outstanding, end of period 650,236 $ 10.01 5.2 $ 4,133 Exercisable at end of period 426,916 $ 9.02 4.1 $ 2,556 |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 9 Months Ended |
Sep. 30, 2018 | |
Investment Securities [Abstract] | |
INVESTMENT SECURITIES | 4. INVESTMENT SECURITIES The amortized cost and fair value of available for sale investment securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows (in thousands): Amortized Gross Unrealized Fair September 30, 2018 Cost Gains Losses Value Residential government-sponsored mortgage-backed securities $ 28,678 $ - $ (1,065) $ 27,613 Obligations of states and political subdivisions 18,374 24 (544) 17,854 Corporate securities 2,009 - (8) 2,001 Trust preferred securities 2,589 380 (274) 2,695 Residential government-sponsored collateralized mortgage obligations 45,726 - (1,914) 43,812 Government-sponsored agency securities 3,247 - (180) 3,067 Agency commercial mortgage-backed securities 28,136 - (1,110) 27,026 SBA pool securities 21,245 8 (393) 20,860 Total $ 150,004 $ 412 $ (5,488) $ 144,928 Amortized Gross Unrealized Fair December 31, 2017 Cost Gains Losses Value Residential government-sponsored mortgage-backed securities $ 31,145 $ 3 $ (284) $ 30,864 Obligations of states and political subdivisions 18,581 187 (41) 18,727 Corporate securities 2,013 2 - 2,015 Trust preferred securities 2,590 - (202) 2,388 Residential government-sponsored collateralized mortgage obligations 51,521 1 (756) 50,766 Government-sponsored agency securities 3,247 - (21) 3,226 Agency commercial mortgage-backed securities 28,263 - (365) 27,898 SBA pool securities 24,829 68 (108) 24,789 Total $ 162,189 $ 261 $ (1,777) $ 160,673 The amortized cost, unrecognized gains and losses, and fair value of investment securities held to maturity were as follows (in thousands): Amortized Gross Unrecognized Fair September 30, 2018 Cost Gains Losses Value Residential government-sponsored mortgage-backed securities $ 10,047 $ 3 $ (373) $ 9,677 Obligations of states and political subdivisions 21,572 58 (290) 21,340 Trust preferred securities 2,859 157 (6) 3,010 Residential government-sponsored collateralized mortgage obligations 6,732 - (149) 6,583 Government-sponsored agency securities 52,655 - (4,214) 48,441 Total $ 93,865 $ 218 $ (5,032) $ 89,051 Amortized Gross Unrecognized Fair December 31, 2017 Cost Gains Losses Value Residential government-sponsored mortgage-backed securities $ 11,500 $ 23 $ (77) $ 11,446 Obligations of states and political subdivisions 22,830 169 (56) 22,943 Trust preferred securities 3,205 165 (17) 3,353 Residential government-sponsored collateralized mortgage obligations 8,727 - (99) 8,628 Government-sponsored agency securities 52,650 25 (1,448) 51,227 Total $ 98,912 $ 382 $ (1,697) $ 97,597 The amortized cost amounts are net of recognized other than temporary impairment. The fair value and carrying amount, if different, of debt investment securities as of September 30, 2018, by contractual maturity were as follows (in thousands). Investment securities not due at a single maturity date are shown separately. Held to Maturity Available for Sale Amortized Amortized Cost Fair Value Cost Fair Value Due in one to five years $ 5,362 $ 5,305 $ 3,388 $ 3,290 Due in five to ten years 19,081 17,897 6,604 6,442 Due after ten years 52,643 49,589 16,227 15,885 Residential government-sponsored - - - - mortgage-backed securities 10,047 9,677 28,678 27,613 Residential government-sponsored - - - - collateralized mortgage obligations 6,732 6,583 45,726 43,812 Agency commercial mortgage-backed securities - - 28,136 27,026 SBA pool securities - - 21,245 20,860 Total $ 93,865 $ 89,051 $ 150,004 $ 144,928 Investment securities with a carrying amount of approximately $ 165.7 million and $173.4 million at September 30, 2018 and December 31, 2017, respectively, were pledged to secure public deposits, certain other deposits, a line of credit for advances from the Federal Home Loan Bank of Atlanta (“FHLB”), and repurchase agreements. Southern National monitors the portfolio for indicators of other than temporary impairment. At September 30, 2018 and December 31, 2017, certain investment securities’ fair values were below cost. As outlined in the table below, there were investment securities with fair values totaling approximately $ 218.8 million in the portfolio with the carrying value exceeding the estimated fair value that are considered temporarily impaired at September 30, 2018. Because the decline in fair value is attributable to changes in interest rates and market illiquidity, and not credit quality, and because we do not have the intent to sell these investment securities and it is likely that we will not be required to sell the investment securities before their anticipated recovery, management does not consider these investment securities to be other than temporarily impaired as of September 30, 2018. The following tables present information regarding investment securities in a continuous unrealized loss position as of September 30, 2018 and December 31, 2017 by duration of time in a loss position (in thousands): September 30, 2018 Less than 12 months 12 Months or More Total Available for Sale Fair value Unrealized Losses Fair value Unrealized Losses Fair value Unrealized Losses Residential government-sponsored mortgage-backed securities $ 397 $ (4) $ 27,397 $ (1,061) $ 27,794 $ (1,065) Obligations of states and political subdivisions 11,541 (408) 4,472 (136) 16,013 (544) Corporate securities 1,001 (8) - - 1,001 (8) Trust preferred securities - - 825 (274) 825 (274) Residential government-sponsored collateralized mortgage obligations 1,304 (27) 42,510 (1,887) 43,814 (1,914) Government-sponsored agency securities - - 3,067 (180) 3,067 (180) Agency commercial mortgage-backed securities - - 27,026 (1,110) 27,026 (1,110) SBA pool securities 10,876 (175) 8,318 (218) 19,194 (393) Total $ 25,119 $ (622) $ 113,615 $ (4,866) $ 138,734 $ (5,488) Less than 12 months 12 Months or More Total Held to Maturity Fair value Unrecognized Losses Fair value Unrecognized Losses Fair value Unrecognized Losses Residential government-sponsored mortgage-backed securities $ 4,440 $ (152) $ 4,694 $ (221) $ 9,134 $ (373) Obligations of states and political subdivisions 10,222 (125) 5,463 (165) 15,685 (290) Trust preferred securities - - 247 (6) 247 (6) Residential government-sponsored collateralized mortgage obligations - - 6,583 (149) 6,583 (149) Government-sponsored agency securities 11,350 (605) 37,091 (3,609) 48,441 (4,214) Total $ 26,012 $ (882) $ 54,078 $ (4,150) $ 80,090 $ (5,032) December 31, 2017 Less than 12 months 12 Months or More Total Available for Sale Fair value Unrealized Losses Fair value Unrealized Losses Fair value Unrealized Losses Residential government-sponsored mortgage-backed securities $ 30,336 $ (284) $ - $ - $ 30,336 $ (284) Obligations of states and political subdivisions 4,642 (41) - - 4,642 (41) Trust preferred securities 1,473 (18) 915 (184) 2,388 (202) Residential government-sponsored collateralized mortgage obligations 50,555 (756) - - 50,555 (756) Government-sponsored agency securities 1,726 (21) - - 1,726 (21) Agency commercial mortgage-backed securities 27,898 (365) - - 27,898 (365) SBA pool securities 15,156 (108) - - 15,156 (108) Total $ 131,786 $ (1,593) $ 915 $ (184) $ 132,701 $ (1,777) Less than 12 months 12 Months or More Total Held to Maturity Fair value Unrecognized Losses Fair value Unrecognized Losses Fair value Unrecognized Losses Residential government-sponsored mortgage-backed securities $ 3,409 $ (26) $ 2,986 $ (51) $ 6,395 $ (77) Obligations of states and political subdivisions 7,918 (34) 1,782 (22) 9,700 (56) Trust preferred securities - - 240 (17) 240 (17) Residential government-sponsored collateralized mortgage obligations 7,112 (46) 1,516 (53) 8,628 (99) Government-sponsored agency securities 1,719 (2) 37,532 (1,446) 39,251 (1,448) Total $ 20,158 $ (108) $ 44,056 $ (1,589) $ 64,214 $ (1,697) As of September 30, 2018, we owned pooled trust preferred securities as follows: Previously % of Current Recognized Defaults and Cumulative Ratings Estimated Deferrals to Other Tranche When Purchased Current Ratings Par Book Fair Total Comprehensive Security Level Moody's Fitch Moody's Fitch Value Value Value Collateral Loss (1) Held to Maturity ALESCO VII A1B Senior Aaa AAA Aa2 AA $ 2,812 $ 2,606 $ 2,763 17% $ 219 MMCF III B Senior Sub A3 A- Ba1 BBB 257 253 247 44% 4 3,069 2,859 3,010 $ 223 Cumulative OTTI Available for Sale Related to Other Than Temporarily Impaired: Credit Loss (2) TPREF FUNDING II Mezzanine A1 A- Caa3 C 1,500 1,099 825 28% $ 400 ALESCO V C1 Mezzanine A2 A Caa1 C 2,150 1,490 1,870 12% 660 3,650 2,589 2,695 $ 1,060 Total $ 6,719 $ 5,448 $ 5,705 (1) Pre-tax, and represents unrealized losses at date of transfer from available-for-sale to held-to-maturity, net of accretion (2) Pre-tax Each of these investment securities has been evaluated for other than temporary impairment. In performing a detailed cash flow analysis of each investment security, Sonabank works with independent third parties to estimate expected cash flows and assist with the evaluation of other than temporary impairment. The cash flow analyses performed included the following assumptions: · 0.5% of the remaining performing collateral will default or defer per annum. · Recoveries of 9% with a two year lag on all defaults and deferrals. · No prepayments for 10 years and then 1% per annum for the remaining life of the investment security. · Our investment securities have been modeled using the above assumptions by independent third parties using the forward LIBOR curve to discount projected cash flows to present values. We recognized no other than temporary impairment charges during the nine months ended September 30, 2018 and 2017, respectively. Changes in accumulated other comprehensive loss by component for the three and nine months ended September 30, 2018 and 2017 are shown in the tables below. All amounts are net of tax (in thousands). Unrealized Holding Losses on Held to Maturity For the three months ended September 30, 2018 Available for Sale Securities Securities Total Beginning balance $ (3,342) $ (177) $ (3,519) Other comprehensive (loss) income before reclassifications (667) 2 (665) Ending balance $ (4,009) $ (175) $ (4,184) Unrealized Holding Losses on Held to Maturity For the three months ended September 30, 2017 Available for Sale Securities Securities Total Beginning balance $ (743) $ (158) $ (901) Other comprehensive income before reclassifications 161 2 163 Ending balance $ (582) $ (156) $ (738) Unrealized Holding Losses on Held to Maturity For the nine months ended September 30, 2018 Available for Sale Securities Securities Total Beginning balance $ (999) $ (153) $ (1,152) Other comprehensive (loss) income before reclassifications (2,811) 8 (2,803) Reclassification adjustment (199) (30) (229) Ending balance $ (4,009) $ (175) $ (4,184) Unrealized Holding Losses on Held to Maturity For the nine months ended September 30, 2017 Available for Sale Securities Securities Total Beginning balance $ (627) $ (162) $ (789) Other comprehensive (loss) income before reclassifications 45 6 51 Ending balance $ (582) $ (156) $ (738) |
LOANS AND ALLOWANCE FOR LOAN LO
LOANS AND ALLOWANCE FOR LOAN LOSSES | 9 Months Ended |
Sep. 30, 2018 | |
LOANS AND ALLOWANCE FOR LOAN LOSSES [Abstract] | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | 5. LOANS AND ALLOWANCE FOR LOAN LOSSES The following table summarizes the composition of our loan portfolio as of September 30, 2018 and December 31, 2017 (in thousands): September 30, 2018 December 31, 2017 Loans secured by real estate: Commercial real estate - owner occupied $ 400,839 $ 401,847 Commercial real estate - non-owner occupied 494,554 440,700 Secured by farmland 21,354 23,038 Construction and land loans 186,973 197,972 Residential 1-4 family 558,164 483,006 Multi- family residential 85,879 70,892 Home equity lines of credit 131,146 152,829 Total real estate loans 1,878,909 1,770,284 Commercial loans 249,951 253,258 Consumer loans 32,607 39,374 Gross loans 2,161,467 2,062,916 Less deferred fees on loans (61) (588) Loans, net of deferred fees $ 2,161,406 $ 2,062,328 Accounting policy related to the allowance for loan losses is considered a critical policy given the level of estimation, judgment, and uncertainty in the levels of the allowance required to account for the inherent probable losses in the loan portfolio and the material effect such estimation, judgment, and uncertainty can have on the consolidated financial results. On June 23, 2017, in connection with the merger with EVBS, SNBV acquired loans held for sale with a fair value , after recognition of certain measurement period adjustments, of $19.7 million and loans held for investment with an unpaid principal balance of $1.05 billion and an estimated fair value , after recognition of certain measurement period adjustments, of $1.0 3 billion, which created an accretable discount of $14.2 million at acquisition. As of September 30, 2018, outstanding loans acquired in the merger with EVBS totaled $778 million. As part of the Greater Atlantic Bank acquisition, the Bank and the FDIC entered into loss sharing agreements on approximately $143.4 million (contractual basis) of Greater Atlantic Bank’s assets. There were two agreements with the FDIC: one for single family loans which is a 10-year agreement expiring in December 2019, and one for non-single family (commercial) assets which was a 5-year agreement which expired in December 2014. The Bank will share in the losses on the loans and foreclosed loan collateral with the FDIC as specified in the loss sharing agreements; we refer to these assets collectively as “covered assets.” Loans that are not covered in the loss sharing agreement are referred to as “non-covered loans”. Covered loans totaled $19.0 million and $23.3 million at September 30, 2018 and December 31, 2017, respectively. Accretable discount on the acquired EVBS, Greater Atlantic Bank (“GAB”), Prince George’s Federal Savings Bank (“PGFSB”), and the HarVest Bank (“HarVest”) loans totaled $14.4 million and $17.5 million at September 30, 2018 and December 31, 2017, respectively. For the three acquisitions subsequent to the Greater Atlantic Bank acquisition noted above, management sold the majority of the purchased credit impaired loans immediately after closing of the acquisition. Impaired loans for the covered and non-covered portfolios were as follows (in thousands): Total Loans Unpaid Recorded Principal Related September 30, 2018 Investment (1) Balance Allowance With no related allowance recorded Commercial real estate - owner occupied $ 663 $ 663 $ - Commercial real estate - non-owner occupied (2) - - - Construction and land development - - - Commercial loans 3,384 4,497 - Residential 1-4 family (3) 1,558 1,823 - Other consumer loans 19 19 - Total $ 5,624 $ 7,002 $ - With an allowance recorded Commercial real estate - owner occupied $ - $ - $ - Commercial real estate - non-owner occupied (2) - - - Construction and land development - - - Commercial loans - - - Residential 1-4 family (3) - - - Other consumer loans - - - Total $ - $ - $ - Grand total $ 5,624 $ 7,002 $ - (1) Includes $3.3 million in SBA guarantees. (2) Includes loans secured by farmland and multi-family loans. (3) Includes home equity lines of credit. Total Loans Unpaid Recorded Principal Related December 31, 2017 Investment (1) Balance Allowance With no related allowance recorded Commercial real estate - owner occupied $ 767 $ 781 $ - Commercial real estate - non-owner occupied (2) 766 830 - Construction and land development 9,969 9,984 - Commercial loans 6,035 12,847 - Residential 1-4 family (3) 3,160 3,430 - Other consumer loans - - - Total $ 20,697 $ 27,872 $ - With an allowance recorded Commercial real estate - owner occupied $ - $ - $ - Commercial real estate - non-owner occupied (2) - - - Construction and land development - - - Commercial loans - - - Residential 1-4 family (3) - - - Other consumer loans - - - Total $ - $ - $ - Grand total $ 20,697 $ 27,872 $ - (1) Includes $5.0 million in SBA guarantees. (2) Includes loans secured by farmland and multi-family loans. (3) Includes home equity lines of credit. The following tables present the average recorded investment and interest income for impaired loans recognized by class of loans for the three and nine months ended September 30, 2018 and 2017 (in thousands): Total Loans Average Interest Recorded Income Three Months Ended September 30, 2018 Investment Recognized With no related allowance recorded Commercial real estate - owner occupied $ 663 $ 9 Commercial real estate - non-owner occupied (1) - - Construction and land development - - Commercial loans 4,849 12 Residential 1-4 family (2) 1,821 22 Other consumer loans 19 - Total $ 7,352 $ 43 With an allowance recorded Commercial real estate - owner occupied $ - $ - Commercial real estate - non-owner occupied (1) - - Construction and land development - - Commercial loans - - Residential 1-4 family (2) - - Other consumer loans - - Total $ - $ - Grand total $ 7,352 $ 43 (1) Includes loans secured by farmland and multi-family loans. (2) Includes home equity lines of credit. Total Loans Average Interest Recorded Income Three Months Ended September 30, 2017 Investment Recognized With no related allowance recorded Commercial real estate - owner occupied $ 1,325 $ 8 Commercial real estate - non-owner occupied (1) - - Construction and land development 9,984 153 Commercial loans 8,286 111 Residential 1-4 family (2) 1,807 12 Other consumer loans - - Total $ 21,402 $ 284 With an allowance recorded Commercial real estate - owner occupied $ - $ - Commercial real estate - non-owner occupied (1) - - Construction and land development - - Commercial loans - - Residential 1-4 family (2) - - Other consumer loans - - Total $ - $ - Grand total $ 21,402 $ 284 (1) Includes loans secured by farmland and multi-family loans. (2) Includes home equity lines of credit. Total Loans Average Interest Recorded Income Nine Months Ended September 30, 2018 Investment Recognized With no related allowance recorded Commercial real estate - owner occupied $ 663 $ 26 Commercial real estate - non-owner occupied (1) - - Construction and land development - - Commercial loans 4,732 31 Residential 1-4 family (2) 2,005 52 Other consumer loans 21 - Total $ 7,421 $ 109 With an allowance recorded Commercial real estate - owner occupied $ - $ - Commercial real estate - non-owner occupied (1) - - Construction and land development - - Commercial loans - - Residential 1-4 family (2) - - Other consumer loans - - Total $ - $ - Grand total $ 7,421 $ 109 (1) Includes loans secured by farmland and multi-family loans. (2) Includes home equity lines of credit. Total Loans Average Interest Recorded Income Nine Months Ended September 30, 2017 Investment Recognized With no related allowance recorded Commercial real estate - owner occupied $ 1,328 $ 27 Commercial real estate - non-owner occupied (1) - - Construction and land development 9,934 158 Commercial loans 8,206 323 Residential 1-4 family (2) 1,809 45 Other consumer loans - - Total $ 21,277 $ 553 With an allowance recorded Commercial real estate - owner occupied $ - $ - Commercial real estate - non-owner occupied (1) - - Construction and land development - - Commercial loans - - Residential 1-4 family (2) - - Other consumer loans - - Total $ - $ - Grand total $ 21,277 $ 553 (1) Includes loans secured by farmland and multi-family loans. (2) Includes home equity lines of credit. The following tables present the aging of the recorded investment in past due loans by class of loans as of September 30, 2018 and December 31, 2017 (in thousands): 30 - 59 60 - 89 Days Days 90 Days Total Nonaccrual Loans Not Total September 30, 2018 Past Due Past Due or More Past Due Loans Past Due Loans Total loans: Commercial real estate - owner occupied $ 2,065 $ 678 $ - $ 2,743 $ - $ 398,096 $ 400,839 Commercial real estate - non-owner occupied (1) 42 - - 42 - 601,745 601,787 Construction and land development 84 - - 84 - 186,889 186,973 Commercial loans 853 18 - 871 3,384 245,696 249,951 Residential 1-4 family (2) 3,505 547 - 4,052 1,558 683,700 689,310 Other consumer loans 7 25 - 32 19 32,556 32,607 Total $ 6,556 $ 1,268 $ - $ 7,824 $ 4,961 $ 2,148,682 $ 2,161,467 30 - 59 60 - 89 Days Days 90 Days Total Nonaccrual Loans Not Total December 31, 2017 Past Due Past Due or More Past Due Loans Past Due Loans Total loans: Commercial real estate - owner occupied $ 687 $ - $ - $ 687 $ - $ 401,160 $ 401,847 Commercial real estate - non-owner occupied (1) 138 50 - 188 - 534,442 534,630 Construction and land development 1,134 149 - 1,283 9,969 186,720 197,972 Commercial loans 496 - - 496 5,664 247,098 253,258 Residential 1-4 family (2) 2,926 361 - 3,287 2,392 630,156 635,835 Other consumer loans 57 1 - 58 - 39,316 39,374 Total $ 5,438 $ 561 $ - $ 5,999 $ 18,025 $ 2,038,892 $ 2,062,916 (1) Includes loans secured by farmland and multi-family loans. (2) Includes home equity lines of credit. Activity in the allowance for non-covered loan and lease losses for the three and nine months ended September 30, 2018 and 2017 is summarized below (in thousands): Commercial Commercial Real Estate Real Estate Non-owner Construction 1-4 Family Other Owner Occupied and Land Commercial Residential Consumer Un- Three Months Ended September 30, 2018 Occupied (1) Development Loans (2) Loans allocated Total Allowance for loan losses: Beginning balance $ 750 $ 1,293 $ 873 $ 6,306 $ 1,579 $ 199 $ - $ 11,000 Charge offs - - - (366) (200) (38) - (604) Recoveries 4 - - 15 4 (18) - 5 Provision 62 (81) 247 375 273 174 - 1,050 Ending balance $ 816 $ 1,212 $ 1,120 $ 6,330 $ 1,656 $ 317 $ - $ 11,451 Three Months Ended September 30, 2017 Allowance for loan losses: Beginning balance $ 938 $ 1,790 $ 1,096 $ 2,691 $ 1,423 $ 84 $ 1,175 $ 9,197 Charge offs - - - (5,316) - (57) - (5,373) Recoveries 7 - - 170 2 1 - 180 Provision (129) (260) (293) 6,629 15 297 (1,009) 5,250 Ending balance $ 816 $ 1,530 $ 803 $ 4,174 $ 1,440 $ 325 $ 166 $ 9,254 (1) Includes loans secured by farmland and multi-family loans. (2) Includes home equity lines of credit. Commercial Commercial Real Estate Real Estate Non-owner Construction 1-4 Family Other Owner Occupied and Land Commercial Residential Consumer Un- Nine Months Ended September 30, 2018 Occupied (1) Development Loans (2) Loans allocated Total Allowance for loan losses: Beginning balance $ 690 $ 1,321 $ 692 $ 4,496 $ 1,586 $ 612 $ - $ 9,397 Charge offs - - - (1,303) (461) (220) - (1,984) Recoveries 11 - - 222 94 11 - 338 Provision 115 (109) 428 2,915 437 (86) - 3,700 Ending balance $ 816 $ 1,212 $ 1,120 $ 6,330 $ 1,656 $ 317 $ - $ 11,451 Nine Months Ended September 30, 2017 Allowance for loan losses: Beginning balance $ 905 $ 1,484 $ 752 $ 3,366 $ 1,279 $ 78 $ 746 $ 8,610 Charge offs - (100) - (6,283) (319) (63) - (6,765) Recoveries 28 299 - 221 6 5 - 559 Provision (117) (153) 51 6,870 474 305 (580) 6,850 Ending balance $ 816 $ 1,530 $ 803 $ 4,174 $ 1,440 $ 325 $ 166 $ 9,254 (1) Includes loans secured by farmland and multi-family loans. (2) Includes home equity lines of credit. The following tables present the balance in the allowance for loan losses and the recorded investment in non-covered loans by portfolio segment and based on impairment method as of September 30, 2018 and December 31, 2017 (in thousands): Commercial Commercial Real Estate Real Estate Non-owner Construction 1-4 Family Other Owner Occupied and Land Commercial Residential Consumer Un- September 30, 2018 Occupied (1) Development Loans (2) Loans allocated Total Ending allowance balance attributable to loans: Individually evaluated for impairment $ - $ - $ - $ - $ - $ - $ - $ - Collectively evaluated for impairment 816 1,212 1,120 6,330 1,656 317 - 11,451 Total ending allowance $ 816 $ 1,212 $ 1,120 $ 6,330 $ 1,656 $ 317 $ - $ 11,451 Loans: Individually evaluated for impairment $ 663 $ - $ - $ 3,384 $ 1,558 $ 19 $ - $ 5,624 Collectively evaluated for impairment 400,176 601,787 186,973 246,567 687,752 32,588 - 2,155,843 Total ending loan balances $ 400,839 $ 601,787 $ 186,973 $ 249,951 $ 689,310 $ 32,607 $ - $ 2,161,467 December 31, 2017 Ending allowance balance attributable to loans: Individually evaluated for impairment $ - $ - $ - $ - $ - $ - $ - $ - Collectively evaluated for impairment 690 1,321 692 4,496 1,586 612 - 9,397 Total ending allowance $ 690 $ 1,321 $ 692 $ 4,496 $ 1,586 $ 612 $ - $ 9,397 Loans: Individually evaluated for impairment $ 767 $ 766 $ 9,969 $ 6,035 $ 3,160 $ - $ - $ 20,697 Collectively evaluated for impairment 401,080 533,864 188,003 247,223 632,675 39,374 - 2,042,219 Total ending loan balances $ 401,847 $ 534,630 $ 197,972 $ 253,258 $ 635,835 $ 39,374 $ - $ 2,062,916 (1) Includes loans secured by farmland and multi-family loans. (2) Includes home equity lines of credit. Troubled Debt Restructurings A modification is classified as a troubled debt restructuring (“TDR”) if both of the following exist: (1) the borrower is experiencing financial difficulty and (2) the Bank has granted a concession to the borrower. The Bank determines that a borrower may be experiencing financial difficulty if the borrower is currently delinquent on any of its debt, or if the Bank is concerned that the borrower may not be able to perform in accordance with the current terms of the loan agreement in the foreseeable future. Many aspects of the borrower’s financial situation are assessed when determining whether they are experiencing financial difficulty, particularly as it relates to commercial borrowers due to the complex nature of the loan structure, business/industry risk and borrower/guarantor structures. Concessions may include the reduction of an interest rate at a rate lower than current market rate for a new loan with similar risk, extension of the maturity date, reduction of accrued interest, or principal forgiveness. When evaluating whether a concession has been granted, the Bank also considers whether the borrower has provided additional collateral or guarantors and whether such additions adequately compensate the Bank for the restructured terms, or if the revised terms are consistent with those currently being offered to new loan customers. The assessments of whether a borrower is experiencing (or is likely to experience) financial difficulty and whether a concession has been granted is subjective in nature and management’s judgment is required when determining whether a modification is a TDR. Although each occurrence is unique to the borrower and is evaluated separately, for all portfolio segments, TDRs are typically modified through reduction in interest rates, reductions in payments, changing the payment terms from principal and interest to interest only, and/or extensions in term maturity. During the nine months ending September 30, 2018 and September 30, 2017, there were no loans modified in TDRs. One TDR which had been modified in 2013 defaulted during the second quarter of 2015. This loan, in the amount of $663 thousand, was current as of September 30, 2018. Credit Quality Indicator Through its system of internal controls, Southern National evaluates and segments loan portfolio credit quality on a quarterly basis using regulatory definitions for Special Mention, Substandard and Doubtful. Special Mention loans are considered to be criticized. Substandard and Doubtful loans are considered to be classified. Special Mention loans are loans that have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position. Substandard loans may be inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged if any. Loans so classified 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. Doubtful loans have all the weaknesses inherent in those classified as substandard, with 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. Southern National had no loans classified as Doubtful at September 30, 2018 or December 31, 2017. As of September 30, 2018 and December 31, 2017, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows (in thousands): Total Loans Special September 30, 2018 Mention Substandard (3) Pass Total Commercial real estate - owner occupied $ 8,384 $ 1,531 $ 390,924 $ 400,839 Commercial real estate - non-owner occupied (1) 5,172 189 596,426 601,787 Construction and land development - - 186,973 186,973 Commercial loans 5,549 335 244,067 249,951 Residential 1-4 family (2) 851 1,998 686,461 689,310 Other consumer loans 147 - 32,460 32,607 Total $ 20,103 $ 4,053 $ 2,137,311 $ 2,161,467 Total Loans Special December 31, 2017 Mention Substandard (3) Pass Total Commercial real estate - owner occupied $ 4,178 $ 1,678 $ 395,991 $ 401,847 Commercial real estate - non-owner occupied (1) 5,705 830 528,095 534,630 Construction and land development 128 9,969 187,875 197,972 Commercial loans 5,936 6,035 241,287 253,258 Residential 1-4 family (2) 1,323 3,935 630,577 635,835 Other consumer loans 162 - 39,212 39,374 Total $ 17,432 $ 22,447 $ 2,023,037 $ 2,062,916 (1) Includes loans secured by farmland and multi-family residential loans. (2) Includes home equity lines of credit. (3) Includes SBA guarantees of $3.3 million and $5.0 million as of September 30, 2018 and December 31, 2017. The amount of foreclosed residential real estate property held at September 30, 2018 and December 31, 2017 was $1.4 million and $3.3 million, respectively. The recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure was $336 thousand and $939 thousand at September 30, 2018 and December 31, 2017, respectively. |
FINANCIAL INSTRUMENTS WITH OFF-
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | 9 Months Ended |
Sep. 30, 2018 | |
Financial Instruments With Off Balance Sheet Risk [Abstract] | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | 6. FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK Southern National is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby letters of credit and guarantees of credit card accounts sold by EVBS premerger. These instruments involve elements of credit and funding risk in excess of the amount recognized in the consolidated balance sheet. Letters of credit are written conditional commitments issued by Southern National to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. We had letters of credit outstanding totaling $17.1 million and $15.2 million as of September 30, 2018 and December 31, 2017, respectively. Our exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit and letters of credit is based on the contractual amount of these instruments. We use the same credit policies in making commitments and conditional obligations as we do for on-balance sheet instruments. Unless noted otherwise, we do not require collateral or other security to support financial instruments with credit risk. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments are made predominately for adjustable rate loans, and generally have fixed expiration dates of up to three months or other termination clauses and usually require payment of a fee. Since many of the commitments may expire without being completely drawn upon, the total commitment amounts do not necessarily represent future cash requirements. We evaluate each customer's creditworthiness on a case-by-case basis. At September 30, 2018 and December 31, 2017, we had unfunded lines of credit and undisbursed construction loan funds totaling $3 57 . 3 million and $361.7 million, respectively. Virtually all of our unfunded lines of credit and undisbursed construction loan funds are variable rate. Pre-merger, EVBS sold its credit card portfolio. With that sale, EVBS guaranteed the credit card accounts of certain customers to the bank that issues the cards. In connection with the merger with EVBS, Southern National now is the guarantor. The fair value of guarantees of credit card accounts previously sold is based on the estimated cost to settle the obligations with the counterparty and are not considered significant as of September 30, 2018. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 7. Earnings Per Share The following is a reconciliation of the denominators of the basic and diluted earnings per share (“EPS”) computations ( amount s in thousands, except per share data): Weighted Average Income Shares Per Share (Numerator) (Denominator) Amount For the three months ended September 30, 2018 Basic EPS $ 8,861 24,049 $ 0.37 Effect of dilutive stock options and warrants - 271 - Diluted EPS $ 8,861 24,320 $ 0.36 For the three months ended September 30, 2017 Basic EPS $ 4,374 23,913 $ 0.18 Effect of dilutive stock options and warrants - 305 - Diluted EPS $ 4,374 24,218 $ 0.18 For the nine months ended September 30, 2018 Basic EPS $ 25,987 24,017 $ 1.08 Effect of dilutive stock options and warrants - 256 - Diluted EPS $ 25,987 24,273 $ 1.07 For the nine months ended September 30, 2017 Basic EPS $ 3,586 16,526 $ 0.22 Effect of dilutive stock options and warrants - 295 - Diluted EPS $ 3,586 16,821 $ 0.21 There were 379,599 and 394,225 anti-dilutive options outstanding for the three and nine months ended September 30, 2018. There were 480,729 and 467,977 anti-dilutive options and warrants outstanding for the three and nine months ended September 30, 2017, respectively. |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value [Abstract] | |
FAIR VALUE | 8. FAIR VALUE ASC 820-10 establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability The following is a description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy: Investment Securities Available for Sale Where quoted prices are available in an active market, investment securities are classified within Level 1 of the valuation hierarchy. Level 1 investment securities would include highly liquid government bonds, mortgage products and exchange traded equities. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of investment securities with similar characteristics or discounted cash flow. Level 2 investment securities would include U.S. agency securities, mortgage-backed securities, obligations of states and political subdivisions and certain corporate, asset-backed and other securities. In certain cases where there is limited activity or less transparency around inputs to the valuation, investment securities are classified within Level 3 of the valuation hierarchy. Currently, all of Southern National’s available for sale debt investment securities are considered to be Level 2 investment securities. Assets measured at fair value on a recurring basis are summarized below: Assets measured at fair value on a recurring basis are summarized below: Fair Value Measurements Using Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Total at Identical Assets Inputs Inputs (dollars in thousands) September 30, 2018 (Level 1) (Level 2) (Level 3) Financial assets: Available for sale securities Residential government-sponsored mortgage-backed securities $ 27,613 $ - $ 27,613 $ - Obligations of states and political subdivisions 17,854 - 17,854 - Corporate securities 2,001 - 2,001 - Trust preferred securities 2,695 - 2,695 - Residential government-sponsored collateralized mortgage obligations 43,812 - 43,812 - Government-sponsored agency securities 3,067 - 3,067 - Agency commercial mortgage-backed securities 27,026 - 27,026 - SBA pool securities 20,860 - 20,860 - Total $ 144,928 $ - $ 144,928 $ - Fair Value Measurements Using Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Total at Identical Assets Inputs Inputs (dollars in thousands) December 31, 2017 (Level 1) (Level 2) (Level 3) Financial assets: Available for sale securities Residential government-sponsored mortgage-backed securities $ 30,864 $ - $ 30,864 $ - Obligations of states and political subdivisions 18,727 - 18,727 - Corporate securities 2,015 - 2,015 - Trust preferred securities 2,388 - 2,388 - Residential government-sponsored collateralized mortgage obligations 50,766 - 50,766 - Government-sponsored agency securities 3,226 - 3,226 - Agency commercial mortgage-backed securities 27,898 - 27,898 - SBA pool securities 24,789 - 24,789 - Total $ 160,673 $ - $ 160,673 $ - Assets and Liabilities Measured on a Non-recurring Basis: Impaired Loans Generally, we measure the impairment for impaired loans considering the fair value of the loan’s collateral (if the loan is collateral dependent). Fair value of the loan’s collateral is determined by an independent appraisal or evaluation less estimated costs related to selling the collateral. In some cases appraised value is net of costs to sell. Estimated selling costs range from 6% to 10% of collateral valuation at September 30, 2018 and December 31, 2017. For loans who fair values are not measured based on the fair value of the collateral, impairment is measured based on the present value of the expected future cash flows discounted at the loan’s effective interest rate. Fair value is classified as Level 3 in the fair value hierarchy. Loans identified as impaired totaled $5.6 million (including SBA guarantees of $3.3 million) as of September 30, 2018 with n o allocation made to the allowance for loan losses compared to a carrying amount of $20.7 million (including SBA guarantees of $5.0 million) with no allocation made to the allowance for loan losses at December 31, 2017. Assets held for sale In connection with the merger with EVBS, SNBV acquired four properties that were either former EVBS administrative locations or previously anticipated to be future EVBS administrative locations. Assets held for sale are measured at fair value less cost to sell, based on appraisals conducted by an independent, licensed appraiser outside of the Company using observable market data. If the fair value is significantly adjusted due to differences in the comparable properties, or is discounted by the Company because of marketability, then the fair value is considered Level 3. Assets held for sale are measured at fair value on a non-recurring basis. Subsequent fair value adjustments are recorded in the period incurred and included in other noninterest expense on the consolidated statements of income. Other Real Estate Owned (“OREO”) OREO is evaluated at the time of acquisition and recorded at fair value as determined by independent appraisal or evaluation less cost to sell. In some cases appraised value is net of costs to sell. Selling costs have been in the range from 5.0% to 7.6% of collateral valuation at September 30, 2018 and December 31, 2017. Fair value is classified as Level 3 in the fair value hierarchy. OREO is further evaluated quarterly for any additional impairment. At September 30, 2018 and December 31, 2017 total OREO was $ 5.6 million and $7.6 million, respectively. Assets measured at fair value on a non-recurring basis are summarized below: Fair Value Measurements Using Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Total at Identical Assets Inputs Inputs (dollars in thousands) September 30, 2018 (Level 1) (Level 2) (Level 3) Impaired loans: Commercial real estate - owner occupied $ 663 $ - $ - $ 663 Commercial real estate - non-owner occupied (1) - - - - Commercial loans 3,384 - - 3,384 Residential 1-4 family (2) 1,558 - - 1,558 Consumer 19 - - 19 Assets held for sale 600 - - 600 Other real estate owned: Commercial real estate - owner occupied (1) 1,008 - - 1,008 Construction and land development 3,185 - - 3,185 Residential 1-4 family (2) 1,396 - - 1,396 Fair Value Measurements Using Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Total at Identical Assets Inputs Inputs (dollars in thousands) December 31, 2017 (Level 1) (Level 2) (Level 3) Impaired loans: Commercial real estate - owner occupied $ 767 $ - $ - $ 767 Commercial real estate - non-owner occupied (1) 766 - - 766 Construction and land development 9,969 - - 9,969 Commercial loans 6,035 - - 6,035 Residential 1-4 family (2) 3,160 - - 3,160 Assets held for sale 1,927 - - 1,927 Other real estate owned: Commercial real estate - owner occupied (1) 1,060 - - 1,060 Construction and land development 3,229 - - 3,229 Residential 1-4 family (2) 3,288 - - 3,288 (1) Includes loans secured by farmland and multi-family residential loans. (2) Includes home equity lines of credit. Fair Value of Financial Instruments The carrying amount, estimated fair values and fair value hierarchy levels (previously defined) of financial instruments were as follows (in thousands): September 30, 2018 December 31, 2017 Fair Value Carrying Fair Carrying Fair Hierarchy Level Amount Value Amount Value Financial assets: Cash and cash equivalents Level 1 $ 34,463 $ 34,463 $ 25,463 $ 25,463 Securities available for sale Level 2 144,928 144,928 160,673 160,673 Securities held to maturity Level 2 93,865 89,051 98,912 97,597 Stock in Federal Reserve Bank and Federal Home Loan Bank n/a 22,870 n/a 26,775 n/a Equity investment in mortgage affiliate Level 3 4,525 4,525 4,723 4,723 Preferred investment in mortgage affiliate Level 3 3,305 3,305 3,305 3,305 Net loans Level 3 2,149,955 2,139,020 2,052,931 2,058,779 Accrued interest receivable Level 2 & Level 3 8,266 8,266 8,073 8,073 FDIC indemnification asset Level 3 826 309 1,353 309 Financial liabilities: Demand deposits Level 1 $ 653,993 653,993 $ 649,067 $ 649,067 Money market and savings accounts Level 1 464,281 464,281 517,031 517,031 Certificates of deposit Level 3 906,038 899,920 699,058 694,368 Securities sold under agreements to repurchase Level 1 19,431 19,431 15,468 15,468 FHLB short term advances Level 1 242,115 242,115 335,615 335,615 Junior subordinated debt Level 2 9,571 10,048 9,534 12,043 Senior subordinated notes Level 2 47,099 47,265 47,128 58,163 Accrued interest payable Level 1 & Level 3 3,629 3,629 2,273 2,273 Carrying amount is the estimated fair value for cash and cash equivalents, equity investment in mortgage affiliate, preferred investment in mortgage affiliate, accrued interest receivable and payable, demand deposits, savings accounts, money market accounts, securities sold under agreements to repurchase, and short-term debt (FHLB short-term advances and securities sold under agreements to repurchase). Fair value of long-term debt is based on current rates for similar financing. It was not practicable to determine the fair value of Federal Reserve Bank and Federal Home Loan Bank stock due to restrictions placed on its transferability. The fair value of the FDIC indemnification asset was determined by discounting estimated future cash flows using the long-term risk free rate plus a premium and represents the present value of our current expectation for recoveries from the FDIC on covered loans. The fair value of off-balance-sheet items is not considered material. At September 30, 2018 fair value of net loans, certificates of deposits, junior subordinated debt, and senior subordinated notes were measured using the exit-price notion in accordance with the adoption of ASU 2016-01. At December 31, 2017 the fair value of net loans and certificates of deposits were based on discounted cash flows using current market rates applied to the estimated life of the asset. |
SECURITIES SOLD UNDER AGREEMENT
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS | 9 Months Ended |
Sep. 30, 2018 | |
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Abstract] | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS | 9. SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS Other short-term borrowings can consist of Federal Home Loan Bank (“FHLB”) overnight advances, other FHLB advances maturing within one year, federal funds purchased and securities sold under agreements to repurchase (“repo”) that mature within one year, which are secured transactions with customers. In the second quarter of 2016, the Company discontinued offering repo accounts. However, repo accounts totaling $7.6 million were assumed on June 23, 2017 in the merger with EVBS. During the third quarter of 2017 the Company determined that it will continue to offer repo accounts and the balance at September 30, 2018 and December 31, 2017 was $19.4 million and $15.5 million, respectively. |
JUNIOR SUBORDINATED DEBT AND SE
JUNIOR SUBORDINATED DEBT AND SENIOR SUBORDINATED NOTES | 9 Months Ended |
Sep. 30, 2018 | |
JUNIOR SUBORDINATED DEBT AND SENIOR SUBORDINATED NOTES [Abstract] | |
JUNIOR SUBORDINATED DEBT AND SENIOR SUBORDINATED NOTES | 10. JUNIOR SUBORDINATED DEBT AND SENIOR SUBORDINATED NOTES In connection with our merger with EVBS, the Company assumed $10.3 million of trust preferred securities that were issued on September 17, 2003 and placed through the Trust in a pooled underwriting totaling approximately $650 million. The trust issuer has invested the total proceeds from the sale of the trust preferred securities in Floating Rate Junior Subordinated Deferrable Interest Debentures (“Junior Subordinated Debt”) issued by EVBS. The trust preferred securities pay cumulative cash distributions quarterly at a variable rate per annum, reset quarterly, equal to the three-month LIBOR plus 2.95% . As of September 30, 2018 and December 31, 2017, the interest rate was 5.28% and 4.55% , respectively. The dividends paid to holders of the trust preferred securities, which are recorded as interest expense, are deductible for income tax purposes. The trust preferred securities have a mandatory redemption date of September 17, 2033, and became subject to varying call provisions beginning September 17, 2008. The Company has fully and unconditionally guaranteed the trust preferred securities through the combined operation of the Junior Subordinated Debt and other related documents. The Company’s obligation under the guarantee is unsecured and subordinate to senior and subordinated indebtedness of the Company. The trust preferred securities may be included in Tier 1 capital for regulatory capital adequacy determination purposes up to 25% of Tier 1 capital after its inclusion. At September 30, 2018, all of the trust preferred securities qualified as Tier 1 capital. Subject to certain exceptions and limitations, the Company is permitted to elect from time to time to defer regularly scheduled interest payments on its outstanding Junior Subordinated Debt relating to its trust preferred securities. If the Company defers interest payments on the Junior Subordinated Debt for more than 20 consecutive quarters, the Company would be in default under the governing agreements for such notes and the amount due under such agreements would be immediately due and payable. On January 20, 2017, Southern National completed the sale of $27.0 million of its fixed-to-floating rate Subordinated Notes due 2027 (the “SNBV Senior Subordinated Notes”). The SNBV Senior Subordinated Notes will initially bear interest at 5.875% per annum until January 31, 2022; thereafter, the SNBV Senior Subordinated Notes will be payable at an annual floating rate equal to three-month LIBOR plus a spread of 3.95% until maturity or early redemption. At September 30, 2018, all of the SNBV Senior Subordinated Notes qualified as Tier 2 capital. At September 30, 2018, the remaining unamortized debt issuance costs related to the SNBV Senior Subordinated Notes totaled $784 thousand. Also in connection with our merger with EVBS, the Company assumed the Senior Subordinated Note Purchase Agreement previously entered into by EVBS on April 22, 2015 with certain institutional accredited investors pursuant to which EVBS sold $20.0 million in aggregate principal amount of its 6.50% Fixed-to-Floating Rate Subordinated Notes due 2025 (the “EVBS Senior Subordinated Notes”) to the investors at a price equal to 100% of the aggregate principal amount of the EVBS Senior Subordinated Notes. The EVBS Senior Subordinated Notes bear interest at an annual rate of 6.50%, payable semi-annually in arrears on May 1 and November 1 of each year ending on May 1, 2020. From and including May 1, 2020 to, but excluding, the maturity date, the EVBS Senior Subordinated Notes will bear interest at an annual rate, reset quarterly, equal to LIBOR determined on the determination date of the applicable interest period plus 502 basis points, payable quarterly in arrears on February 1, May 1, August 1 and November 1 of each year, beginning on August 1, 2020. The Company may, at its option, redeem, in whole or in part, the EVBS S enior Subordinated Notes as early as May 1, 2020, and any partial redemption would be made pro rata among all of the holders. At September 30, 2018 all of the EVBS Senior Subordinated Notes qualified as Tier 2 capital. |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Southern National records revenue from contracts with customers in accordance with Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, we must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) we satisfy a performance obligation. Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods. Our primary sources of revenue are derived from financial instruments, namely loans, investment securities, and other financial instruments that are not within the scope of Topic 606. We have evaluated the nature of the Company’s contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income and Comprehensive Income was not necessary. Southern National generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the carrying value of investment securities, other than temporary impairment of investment securities, the valuation of goodwill and intangible assets, the FDIC indemnification asset, other real estate owned (“OREO”), deferred tax assets, and fair value measurements related to assets acquired and liabilities assumed from business combinations. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adoption of New Accounting Standards: In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue From Contracts With Customers (Topic 606). These amendments affect any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g. insurance contracts or lease contracts). This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance, and creates a Topic 606, Revenue from Contracts with Customers. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The ASU allows for either full retrospective or modified retrospective adoption. The new guidance became effective for interim and annual reporting periods beginning after December 15, 2017. Our revenue is balanced between net interest income on financial assets and liabilities, which is explicitly excluded from the scope of the new standard, and noninterest income. The Company’s revenue recognition pattern for revenue streams within the scope of ASU 2014-09, include service charges on deposit accounts, investment services income and card interchange fees, which did not materially change from its prior practice. The Company adopted ASU No. 2014-09 on January 1, 2018 utilizing the modified retrospective approach. In January 2016, the FASB issued ASU 2016-01, Financial Instruments Overall (Topic 825): Recognition and Measurement of Financial Assets and Financial Liabilities . The amendments in ASU 2016-01: (a) require equity investments (except for those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; (b) simplify the impairment assessment of equity securities without readily determinable fair values by requiring a qualitative assessment to identify impairment; (c) eliminate the requirement for public business entities to disclose the method and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (d) require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (e) require an entity to present separately in other comprehensive income, the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; (f) require separate presentation of financial assets and financial liabilities by measurement category and form of financial assets on the balance sheet or the notes to the financial statements; and (g) clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available for sale securities in combination with the entity’s other deferred tax assets. The amendments in this ASU became effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of ASU 2016-01 on January 1, 2018 did not have a material impact on the Company's consolidated financial statements. In accordance with (d) above, the Company measured fair value of its net loans, certificates of deposits, junior subordinated debt, and senior subordinated notes as of September 30, 2018 using an exit price notion (see Note 8 Fair Value ). In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments . Before ASU 2016-15 GAAP was unclear or did not include specific guidance on how to classify certain transactions in the statement of cash flows. This ASU reduced diversity in practice in how eight particular transactions are classified in the statement of cash flows. ASU No. 2016-15 became effective for interim and annual reporting periods beginning after December 15, 2017. Entities are required to apply the guidance retrospectively. If it is impracticable to apply the guidance retrospectively for an issue, the amendments related to that issue would be applied prospectively. The Company adopted ASU 2016-15 on January 1, 2018. ASU 2016-15 did not have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business , which was intended to provide guidance in evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses in order to provide stakeholders with more detailed reporting and less cost to analyze transactions. This ASU provide d a screen to determine when a set of assets is not a business. It require d that when substantially all fair value of gross assets acquired (or disposed of) is concentrated in a single identifiable asset or group of similar identifiable assets, the set of assets is not a business. If the screen is not met, the amendments in this update provide d a framework to assist entities in evaluating whether both an input and a substantive process are present for the set to be a business. ASU 2017-01 became effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. The Company adopted ASU 2017-01 on January 1, 2018 and it did not have a material impact on the Company’s consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718) , Scope of Modification Accounting . These amendments provide guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic 718. The guidance is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company adopted ASU 2017-09 on January 1, 2018 and it did not have a material impact of the Company’s consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220); Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The amendments in this ASU require a reclassification from/to accumulated other comprehensive income and to/from retained earnings for stranded tax effects resulting from the change in the newly enacted federal corporate income tax rate. Consequently, the amendments in this ASU eliminates the stranded tax effects associated with the change in the federal corporate income tax rate in the Tax Cuts and Jobs Act of 2017. The amendments in this ASU are effective for all entities for fiscal years beginning after December 15, 2018 with early adoption allowed. Southern National adopted this ASU 2018-02 during the first quarter of 2018. The effect of the adoption of this ASU increased accumulated other comprehensive loss by $229 thousand with the offset to retained earnings as recorded in the statement of changes in stockholders’ equity. This represents the difference between the historical federal corporate income tax rate and the newly enacted 21 percent federal corporate income tax rate. New Accounting Standards Not Yet Adopted: In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The FASB issued this ASU to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet by lessees for those leases classified as operating leases under current U.S. GAAP and disclosing key information about leasing arrangements. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases, which updates narrow aspects of the guidance issued in ASU 2016-02. The amendments in this ASU are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. Early a doption of this ASU is permitted for all entities. The guidance is effective for us on January 1, 2019. Upon adoption, m anagement anticipates to recogniz e a right-of-use asset and a lease liability associated with its long-term operating leases and is in the process of inventorying and categorizing its lease agreements. We are still evaluating the full impact of this ASU to our disclosures. In June 2016 , the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"), which sets forth a “current expected credit loss” ("CECL") model requiring the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. For public business entities that are U.S. Securities and Exchange Commission filers, the amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Southern National has engaged a third-party to collect data that will be needed to produce historical inputs into any models created as a result of adopting this ASU . We are currently assessing the impact of the adoption of this ASU on our consoli dated financial statements. In January 2017, the FASB issued ASU 2017-04 , Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ("ASU 2017-04") , which eliminates the second step of the previous FASB guidance for testing goodwill for impairment and is intended to reduce cost and complexity of goodwill impairment testing. The amendments in this ASU modify the concept of impairment from the condition that exists when the carrying amount of goodwill exceeds its implied fair value to the condition that exists when the carrying amount of a reporting unit exceeds its fair value. After determining if the carrying amount of a reporting unit exceeds its fair value, the entity should take an impairment charge of the same amount to the goodwill for that reporting unit, not to exceed the total goodwill amount for that reporting unit. ASU 2017-04 is effective for annual periods beginning after December 15, 2019, including interim periods within those annual periods. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. Southern National is currently evaluating the impact of adopting the new guidance on its consolidated financial statements. In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities, which shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 is effective for public entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Southern National is currently reviewing its portfolio of debt securities to determine the impact that this ASU will have on its consolidated financial statements. In July 2018, the FASB issued ASU 2018-09, Codification Improvements . This ASU makes changes to a variety of topics to clarify, correct errors in, or make minor improvements to the Accounting Standards Codification. The majority of the amendments in ASU 2018-09 will be effective for the Company for fiscal years beginning after December 15, 2018. Southern National expects to adopt ASU 2018-09 in the first quarter of 2019 and is evaluating the impact of the standard, but does not expect the guidance to have a material effect on its financial statements. In August 2018, FASB issued ASU 2018-13, Fair Value measurement (Topic 820) . This ASU adds, eliminates and modifies certain disclosure requirements for fair value measurements. The amendments in ASU 2018-13 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 201 9 . Early adoption is permitted . The disclosures are effective using the prospective method for certain disclosures and retrospective for majority of the disclosures. Southern National is currently in the process of evaluating the impact of adopting the new guidance on its consolidated financial statements and disclosures. |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions | The following table details the total consideration paid by SNBV on June 23, 2017 in connection with the acquisition of EVBS, the fair values of the assets acquired and liabilities assumed, and the resulting goodwill. As Recorded Fair Value As Recorded (dollars in thousands) (unaudited) by EVBS Adjustments by the Company Consideration paid: Cash $ 10 SNBV common stock 198,909 Total consideration paid $ 198,919 Identifiable assets acquired: Cash and due from banks $ 4,350 $ - $ 4,350 Interest bearing deposits with banks 18,993 - 18,993 Federal funds sold 682 - 682 Securities available for sale, at fair value 163,029 (150) 162,879 Securities held to maturity, at carrying value 19,036 508 19,544 Restricted securities, at cost 6,734 - 6,734 Loans 1,045,600 (14,188) 1,031,412 Loans held for sale 19,689 - 19,689 Deferred income taxes 15,735 4,912 20,647 Bank premises and equipment 24,242 4,158 28,400 Assets held for sale 2,970 (884) 2,086 Accrued interest receivable 4,272 - 4,272 Other real estate owned 563 (1) 562 Core deposit intangible 435 9,590 10,025 Bank owned life insurance 26,035 - 26,035 Other assets 10,004 - 10,004 Total identifiable assets acquired 1,362,369 3,945 1,366,314 Identifiable liabilities assumed: Noninterest-bearing demand accounts 226,637 - 226,637 Interest-bearing deposits 920,743 1,182 921,925 Federal funds purchased and repurchase agreements 7,598 - 7,598 Federal Home Loan Bank advances 57,475 - 57,475 Junior subordinated debt 10,310 (801) 9,509 Senior subordinated notes 19,175 1,876 21,051 Accrued interest payable 902 - 902 Other liabilities 12,748 1,000 13,748 Total identifiable liabilities assumed 1,255,588 3,257 1,258,845 Net identifiable assets acquired $ 106,781 $ 688 $ 107,469 Goodwill resulting from acquisition $ 91,450 |
Schedule of amortization and accretion of premiums and discounts associated with acquisition accounting adjustments to assets acquired and liabilities | The net effect of the amortization and accretion of premiums and discounts associated with the Company’s acquisition accounting adjustments to assets acquired and liabilities assumed from EVBS had the following impact on the consolidating statements of income during the nine months ended September 30, 2018: For the Nine Months Ended (dollars in thousands) September 30, 2018 Loans (1) $ 2,743 Time deposits (2) 592 Junior and senior subordinated debt (3) 63 Core deposit intangible (4) (940) Net impact to income before income taxes $ 2,458 (1) Loan discount accretion is included in the “Interest and fees on loans” section of “Interest and dividend income” in the Consolidated Statements of Income and Comprehensive Income. (2) Time deposit premium amortization is included in the "Interest on deposits" section of "Interest expense" in the Consolidated Statements of Income and Comprehensive Income . (3) The junior subordinated debt discount accretion and senior subordinated notes premium amortization are included in the “Interest on junior subordinated debt” and “Interest on senior subordinated notes” section of “Interest expense”, respectively, in the Consolidated Statements of Income and Comprehensive Income. (4) Core deposit intangible premium amortization is included in the "Amortization of core deposit intangible" section of "Noninterest expenses" in the Consolidated Statements of Income and Comprehensive Income . |
Schedule of loans and debt securities acquired with deteriorated credit quality | The table below summarizes the purchased credit impaired loans acquired in the EVBS acquisition on June 23, 2017 (in thousands): Purchased Credit Impaired Loans Contractually required principal and interest at acquisition $ 17,970 Contractual cash flows not expected to be collected (nonaccretable difference) (6,243) Expected cash flows at acquisition 11,727 Accretable difference 398 Basis in acquired loans at acquisition - estimated fair value $ 11,329 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
STOCK-BASED COMPENSATION [Abstract] | |
Schedule of activity in the stock option plan | A summary of the activity in the stock option plan during the nine months ended September 30, 2018 follows: Weighted Weighted Average Aggregate Average Remaining Intrinsic Exercise Contractual Value Shares Price Term (in thousands) Options outstanding, beginning of period 714,967 $ 9.83 Granted - - Forfeited (6,731) 10.16 Exercised (58,000) 7.62 Options outstanding, end of period 650,236 $ 10.01 5.2 $ 4,133 Exercisable at end of period 426,916 $ 9.02 4.1 $ 2,556 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investment Securities [Abstract] | |
Schedule of amortized cost and fair value of securities available-for-sale | The amortized cost and fair value of available for sale investment securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows (in thousands): Amortized Gross Unrealized Fair September 30, 2018 Cost Gains Losses Value Residential government-sponsored mortgage-backed securities $ 28,678 $ - $ (1,065) $ 27,613 Obligations of states and political subdivisions 18,374 24 (544) 17,854 Corporate securities 2,009 - (8) 2,001 Trust preferred securities 2,589 380 (274) 2,695 Residential government-sponsored collateralized mortgage obligations 45,726 - (1,914) 43,812 Government-sponsored agency securities 3,247 - (180) 3,067 Agency commercial mortgage-backed securities 28,136 - (1,110) 27,026 SBA pool securities 21,245 8 (393) 20,860 Total $ 150,004 $ 412 $ (5,488) $ 144,928 Amortized Gross Unrealized Fair December 31, 2017 Cost Gains Losses Value Residential government-sponsored mortgage-backed securities $ 31,145 $ 3 $ (284) $ 30,864 Obligations of states and political subdivisions 18,581 187 (41) 18,727 Corporate securities 2,013 2 - 2,015 Trust preferred securities 2,590 - (202) 2,388 Residential government-sponsored collateralized mortgage obligations 51,521 1 (756) 50,766 Government-sponsored agency securities 3,247 - (21) 3,226 Agency commercial mortgage-backed securities 28,263 - (365) 27,898 SBA pool securities 24,829 68 (108) 24,789 Total $ 162,189 $ 261 $ (1,777) $ 160,673 |
Schedule of amortized cost, unrecognized gains and losses, and fair value of held to maturity securities | The amortized cost, unrecognized gains and losses, and fair value of investment securities held to maturity were as follows (in thousands): Amortized Gross Unrecognized Fair September 30, 2018 Cost Gains Losses Value Residential government-sponsored mortgage-backed securities $ 10,047 $ 3 $ (373) $ 9,677 Obligations of states and political subdivisions 21,572 58 (290) 21,340 Trust preferred securities 2,859 157 (6) 3,010 Residential government-sponsored collateralized mortgage obligations 6,732 - (149) 6,583 Government-sponsored agency securities 52,655 - (4,214) 48,441 Total $ 93,865 $ 218 $ (5,032) $ 89,051 Amortized Gross Unrecognized Fair December 31, 2017 Cost Gains Losses Value Residential government-sponsored mortgage-backed securities $ 11,500 $ 23 $ (77) $ 11,446 Obligations of states and political subdivisions 22,830 169 (56) 22,943 Trust preferred securities 3,205 165 (17) 3,353 Residential government-sponsored collateralized mortgage obligations 8,727 - (99) 8,628 Government-sponsored agency securities 52,650 25 (1,448) 51,227 Total $ 98,912 $ 382 $ (1,697) $ 97,597 |
Schedule of fair value and carrying amount, if different, of debt securities, by contractual maturity | The fair value and carrying amount, if different, of debt investment securities as of September 30, 2018, by contractual maturity were as follows (in thousands). Investment securities not due at a single maturity date are shown separately. Held to Maturity Available for Sale Amortized Amortized Cost Fair Value Cost Fair Value Due in one to five years $ 5,362 $ 5,305 $ 3,388 $ 3,290 Due in five to ten years 19,081 17,897 6,604 6,442 Due after ten years 52,643 49,589 16,227 15,885 Residential government-sponsored - - - - mortgage-backed securities 10,047 9,677 28,678 27,613 Residential government-sponsored - - - - collateralized mortgage obligations 6,732 6,583 45,726 43,812 Agency commercial mortgage-backed securities - - 28,136 27,026 SBA pool securities - - 21,245 20,860 Total $ 93,865 $ 89,051 $ 150,004 $ 144,928 |
Schedule of present information regarding securities in a continuous unrealized loss position by duration of time in a loss position | The following tables present information regarding investment securities in a continuous unrealized loss position as of September 30, 2018 and December 31, 2017 by duration of time in a loss position (in thousands): September 30, 2018 Less than 12 months 12 Months or More Total Available for Sale Fair value Unrealized Losses Fair value Unrealized Losses Fair value Unrealized Losses Residential government-sponsored mortgage-backed securities $ 397 $ (4) $ 27,397 $ (1,061) $ 27,794 $ (1,065) Obligations of states and political subdivisions 11,541 (408) 4,472 (136) 16,013 (544) Corporate securities 1,001 (8) - - 1,001 (8) Trust preferred securities - - 825 (274) 825 (274) Residential government-sponsored collateralized mortgage obligations 1,304 (27) 42,510 (1,887) 43,814 (1,914) Government-sponsored agency securities - - 3,067 (180) 3,067 (180) Agency commercial mortgage-backed securities - - 27,026 (1,110) 27,026 (1,110) SBA pool securities 10,876 (175) 8,318 (218) 19,194 (393) Total $ 25,119 $ (622) $ 113,615 $ (4,866) $ 138,734 $ (5,488) Less than 12 months 12 Months or More Total Held to Maturity Fair value Unrecognized Losses Fair value Unrecognized Losses Fair value Unrecognized Losses Residential government-sponsored mortgage-backed securities $ 4,440 $ (152) $ 4,694 $ (221) $ 9,134 $ (373) Obligations of states and political subdivisions 10,222 (125) 5,463 (165) 15,685 (290) Trust preferred securities - - 247 (6) 247 (6) Residential government-sponsored collateralized mortgage obligations - - 6,583 (149) 6,583 (149) Government-sponsored agency securities 11,350 (605) 37,091 (3,609) 48,441 (4,214) Total $ 26,012 $ (882) $ 54,078 $ (4,150) $ 80,090 $ (5,032) December 31, 2017 Less than 12 months 12 Months or More Total Available for Sale Fair value Unrealized Losses Fair value Unrealized Losses Fair value Unrealized Losses Residential government-sponsored mortgage-backed securities $ 30,336 $ (284) $ - $ - $ 30,336 $ (284) Obligations of states and political subdivisions 4,642 (41) - - 4,642 (41) Trust preferred securities 1,473 (18) 915 (184) 2,388 (202) Residential government-sponsored collateralized mortgage obligations 50,555 (756) - - 50,555 (756) Government-sponsored agency securities 1,726 (21) - - 1,726 (21) Agency commercial mortgage-backed securities 27,898 (365) - - 27,898 (365) SBA pool securities 15,156 (108) - - 15,156 (108) Total $ 131,786 $ (1,593) $ 915 $ (184) $ 132,701 $ (1,777) Less than 12 months 12 Months or More Total Held to Maturity Fair value Unrecognized Losses Fair value Unrecognized Losses Fair value Unrecognized Losses Residential government-sponsored mortgage-backed securities $ 3,409 $ (26) $ 2,986 $ (51) $ 6,395 $ (77) Obligations of states and political subdivisions 7,918 (34) 1,782 (22) 9,700 (56) Trust preferred securities - - 240 (17) 240 (17) Residential government-sponsored collateralized mortgage obligations 7,112 (46) 1,516 (53) 8,628 (99) Government-sponsored agency securities 1,719 (2) 37,532 (1,446) 39,251 (1,448) Total $ 20,158 $ (108) $ 44,056 $ (1,589) $ 64,214 $ (1,697) |
Schedule of owned pooled trust preferred securities | As of September 30, 2018, we owned pooled trust preferred securities as follows: Previously % of Current Recognized Defaults and Cumulative Ratings Estimated Deferrals to Other Tranche When Purchased Current Ratings Par Book Fair Total Comprehensive Security Level Moody's Fitch Moody's Fitch Value Value Value Collateral Loss (1) Held to Maturity ALESCO VII A1B Senior Aaa AAA Aa2 AA $ 2,812 $ 2,606 $ 2,763 17% $ 219 MMCF III B Senior Sub A3 A- Ba1 BBB 257 253 247 44% 4 3,069 2,859 3,010 $ 223 Cumulative OTTI Available for Sale Related to Other Than Temporarily Impaired: Credit Loss (2) TPREF FUNDING II Mezzanine A1 A- Caa3 C 1,500 1,099 825 28% $ 400 ALESCO V C1 Mezzanine A2 A Caa1 C 2,150 1,490 1,870 12% 660 3,650 2,589 2,695 $ 1,060 Total $ 6,719 $ 5,448 $ 5,705 (1) Pre-tax, and represents unrealized losses at date of transfer from available-for-sale to held-to-maturity, net of accretion (2) Pre-tax |
Schedule of changes in accumulated other comprehensive income by component | Changes in accumulated other comprehensive loss by component for the three and nine months ended September 30, 2018 and 2017 are shown in the tables below. All amounts are net of tax (in thousands). Unrealized Holding Losses on Held to Maturity For the three months ended September 30, 2018 Available for Sale Securities Securities Total Beginning balance $ (3,342) $ (177) $ (3,519) Other comprehensive (loss) income before reclassifications (667) 2 (665) Ending balance $ (4,009) $ (175) $ (4,184) Unrealized Holding Losses on Held to Maturity For the three months ended September 30, 2017 Available for Sale Securities Securities Total Beginning balance $ (743) $ (158) $ (901) Other comprehensive income before reclassifications 161 2 163 Ending balance $ (582) $ (156) $ (738) Unrealized Holding Losses on Held to Maturity For the nine months ended September 30, 2018 Available for Sale Securities Securities Total Beginning balance $ (999) $ (153) $ (1,152) Other comprehensive (loss) income before reclassifications (2,811) 8 (2,803) Reclassification adjustment (199) (30) (229) Ending balance $ (4,009) $ (175) $ (4,184) Unrealized Holding Losses on Held to Maturity For the nine months ended September 30, 2017 Available for Sale Securities Securities Total Beginning balance $ (627) $ (162) $ (789) Other comprehensive (loss) income before reclassifications 45 6 51 Ending balance $ (582) $ (156) $ (738) |
LOANS AND ALLOWANCE FOR LOAN _2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
LOANS AND ALLOWANCE FOR LOAN LOSSES [Abstract] | |
Schedule of loans, net of unearned income | The following table summarizes the composition of our loan portfolio as of September 30, 2018 and December 31, 2017 (in thousands): September 30, 2018 December 31, 2017 Loans secured by real estate: Commercial real estate - owner occupied $ 400,839 $ 401,847 Commercial real estate - non-owner occupied 494,554 440,700 Secured by farmland 21,354 23,038 Construction and land loans 186,973 197,972 Residential 1-4 family 558,164 483,006 Multi- family residential 85,879 70,892 Home equity lines of credit 131,146 152,829 Total real estate loans 1,878,909 1,770,284 Commercial loans 249,951 253,258 Consumer loans 32,607 39,374 Gross loans 2,161,467 2,062,916 Less deferred fees on loans (61) (588) Loans, net of deferred fees $ 2,161,406 $ 2,062,328 |
Schedule of summary of impaired loans | Impaired loans for the covered and non-covered portfolios were as follows (in thousands): Total Loans Unpaid Recorded Principal Related September 30, 2018 Investment (1) Balance Allowance With no related allowance recorded Commercial real estate - owner occupied $ 663 $ 663 $ - Commercial real estate - non-owner occupied (2) - - - Construction and land development - - - Commercial loans 3,384 4,497 - Residential 1-4 family (3) 1,558 1,823 - Other consumer loans 19 19 - Total $ 5,624 $ 7,002 $ - With an allowance recorded Commercial real estate - owner occupied $ - $ - $ - Commercial real estate - non-owner occupied (2) - - - Construction and land development - - - Commercial loans - - - Residential 1-4 family (3) - - - Other consumer loans - - - Total $ - $ - $ - Grand total $ 5,624 $ 7,002 $ - (1) Includes $3.3 million in SBA guarantees. (2) Includes loans secured by farmland and multi-family loans. (3) Includes home equity lines of credit. Total Loans Unpaid Recorded Principal Related December 31, 2017 Investment (1) Balance Allowance With no related allowance recorded Commercial real estate - owner occupied $ 767 $ 781 $ - Commercial real estate - non-owner occupied (2) 766 830 - Construction and land development 9,969 9,984 - Commercial loans 6,035 12,847 - Residential 1-4 family (3) 3,160 3,430 - Other consumer loans - - - Total $ 20,697 $ 27,872 $ - With an allowance recorded Commercial real estate - owner occupied $ - $ - $ - Commercial real estate - non-owner occupied (2) - - - Construction and land development - - - Commercial loans - - - Residential 1-4 family (3) - - - Other consumer loans - - - Total $ - $ - $ - Grand total $ 20,697 $ 27,872 $ - (1) Includes $5.0 million in SBA guarantees. (2) Includes loans secured by farmland and multi-family loans. (3) Includes home equity lines of credit. |
Schedule of details of average recorded investment and interest income for impaired loans recognized by class of loans | The following tables present the average recorded investment and interest income for impaired loans recognized by class of loans for the three and nine months ended September 30, 2018 and 2017 (in thousands): Total Loans Average Interest Recorded Income Three Months Ended September 30, 2018 Investment Recognized With no related allowance recorded Commercial real estate - owner occupied $ 663 $ 9 Commercial real estate - non-owner occupied (1) - - Construction and land development - - Commercial loans 4,849 12 Residential 1-4 family (2) 1,821 22 Other consumer loans 19 - Total $ 7,352 $ 43 With an allowance recorded Commercial real estate - owner occupied $ - $ - Commercial real estate - non-owner occupied (1) - - Construction and land development - - Commercial loans - - Residential 1-4 family (2) - - Other consumer loans - - Total $ - $ - Grand total $ 7,352 $ 43 (1) Includes loans secured by farmland and multi-family loans. (2) Includes home equity lines of credit. Total Loans Average Interest Recorded Income Three Months Ended September 30, 2017 Investment Recognized With no related allowance recorded Commercial real estate - owner occupied $ 1,325 $ 8 Commercial real estate - non-owner occupied (1) - - Construction and land development 9,984 153 Commercial loans 8,286 111 Residential 1-4 family (2) 1,807 12 Other consumer loans - - Total $ 21,402 $ 284 With an allowance recorded Commercial real estate - owner occupied $ - $ - Commercial real estate - non-owner occupied (1) - - Construction and land development - - Commercial loans - - Residential 1-4 family (2) - - Other consumer loans - - Total $ - $ - Grand total $ 21,402 $ 284 (1) Includes loans secured by farmland and multi-family loans. (2) Includes home equity lines of credit. Total Loans Average Interest Recorded Income Nine Months Ended September 30, 2018 Investment Recognized With no related allowance recorded Commercial real estate - owner occupied $ 663 $ 26 Commercial real estate - non-owner occupied (1) - - Construction and land development - - Commercial loans 4,732 31 Residential 1-4 family (2) 2,005 52 Other consumer loans 21 - Total $ 7,421 $ 109 With an allowance recorded Commercial real estate - owner occupied $ - $ - Commercial real estate - non-owner occupied (1) - - Construction and land development - - Commercial loans - - Residential 1-4 family (2) - - Other consumer loans - - Total $ - $ - Grand total $ 7,421 $ 109 (1) Includes loans secured by farmland and multi-family loans. (2) Includes home equity lines of credit. Total Loans Average Interest Recorded Income Nine Months Ended September 30, 2017 Investment Recognized With no related allowance recorded Commercial real estate - owner occupied $ 1,328 $ 27 Commercial real estate - non-owner occupied (1) - - Construction and land development 9,934 158 Commercial loans 8,206 323 Residential 1-4 family (2) 1,809 45 Other consumer loans - - Total $ 21,277 $ 553 With an allowance recorded Commercial real estate - owner occupied $ - $ - Commercial real estate - non-owner occupied (1) - - Construction and land development - - Commercial loans - - Residential 1-4 family (2) - - Other consumer loans - - Total $ - $ - Grand total $ 21,277 $ 553 (1) Includes loans secured by farmland and multi-family loans. (2) Includes home equity lines of credit. |
Schedule of details of aging of the recorded investment in past due loans by class of loans | The following tables present the aging of the recorded investment in past due loans by class of loans as of September 30, 2018 and December 31, 2017 (in thousands): 30 - 59 60 - 89 Days Days 90 Days Total Nonaccrual Loans Not Total September 30, 2018 Past Due Past Due or More Past Due Loans Past Due Loans Total loans: Commercial real estate - owner occupied $ 2,065 $ 678 $ - $ 2,743 $ - $ 398,096 $ 400,839 Commercial real estate - non-owner occupied (1) 42 - - 42 - 601,745 601,787 Construction and land development 84 - - 84 - 186,889 186,973 Commercial loans 853 18 - 871 3,384 245,696 249,951 Residential 1-4 family (2) 3,505 547 - 4,052 1,558 683,700 689,310 Other consumer loans 7 25 - 32 19 32,556 32,607 Total $ 6,556 $ 1,268 $ - $ 7,824 $ 4,961 $ 2,148,682 $ 2,161,467 30 - 59 60 - 89 Days Days 90 Days Total Nonaccrual Loans Not Total December 31, 2017 Past Due Past Due or More Past Due Loans Past Due Loans Total loans: Commercial real estate - owner occupied $ 687 $ - $ - $ 687 $ - $ 401,160 $ 401,847 Commercial real estate - non-owner occupied (1) 138 50 - 188 - 534,442 534,630 Construction and land development 1,134 149 - 1,283 9,969 186,720 197,972 Commercial loans 496 - - 496 5,664 247,098 253,258 Residential 1-4 family (2) 2,926 361 - 3,287 2,392 630,156 635,835 Other consumer loans 57 1 - 58 - 39,316 39,374 Total $ 5,438 $ 561 $ - $ 5,999 $ 18,025 $ 2,038,892 $ 2,062,916 (1) Includes loans secured by farmland and multi-family loans. Includes home equity lines of credit. |
Schedule of Activity for Loan and Lease Losses By Class of Loan | Activity in the allowance for non-covered loan and lease losses for the three and nine months ended September 30, 2018 and 2017 is summarized below (in thousands): Commercial Commercial Real Estate Real Estate Non-owner Construction 1-4 Family Other Owner Occupied and Land Commercial Residential Consumer Un- Three Months Ended September 30, 2018 Occupied (1) Development Loans (2) Loans allocated Total Allowance for loan losses: Beginning balance $ 750 $ 1,293 $ 873 $ 6,306 $ 1,579 $ 199 $ - $ 11,000 Charge offs - - - (366) (200) (38) - (604) Recoveries 4 - - 15 4 (18) - 5 Provision 62 (81) 247 375 273 174 - 1,050 Ending balance $ 816 $ 1,212 $ 1,120 $ 6,330 $ 1,656 $ 317 $ - $ 11,451 Three Months Ended September 30, 2017 Allowance for loan losses: Beginning balance $ 938 $ 1,790 $ 1,096 $ 2,691 $ 1,423 $ 84 $ 1,175 $ 9,197 Charge offs - - - (5,316) - (57) - (5,373) Recoveries 7 - - 170 2 1 - 180 Provision (129) (260) (293) 6,629 15 297 (1,009) 5,250 Ending balance $ 816 $ 1,530 $ 803 $ 4,174 $ 1,440 $ 325 $ 166 $ 9,254 (1) Includes loans secured by farmland and multi-family loans. (2) Includes home equity lines of credit. Commercial Commercial Real Estate Real Estate Non-owner Construction 1-4 Family Other Owner Occupied and Land Commercial Residential Consumer Un- Nine Months Ended September 30, 2018 Occupied (1) Development Loans (2) Loans allocated Total Allowance for loan losses: Beginning balance $ 690 $ 1,321 $ 692 $ 4,496 $ 1,586 $ 612 $ - $ 9,397 Charge offs - - - (1,303) (461) (220) - (1,984) Recoveries 11 - - 222 94 11 - 338 Provision 115 (109) 428 2,915 437 (86) - 3,700 Ending balance $ 816 $ 1,212 $ 1,120 $ 6,330 $ 1,656 $ 317 $ - $ 11,451 Nine Months Ended September 30, 2017 Allowance for loan losses: Beginning balance $ 905 $ 1,484 $ 752 $ 3,366 $ 1,279 $ 78 $ 746 $ 8,610 Charge offs - (100) - (6,283) (319) (63) - (6,765) Recoveries 28 299 - 221 6 5 - 559 Provision (117) (153) 51 6,870 474 305 (580) 6,850 Ending balance $ 816 $ 1,530 $ 803 $ 4,174 $ 1,440 $ 325 $ 166 $ 9,254 (1) Includes loans secured by farmland and multi-family loans. (2) Includes home equity lines of credit. |
Schedule of allowance for loan losses and the recorded investment by portfolio segment | The following tables present the balance in the allowance for loan losses and the recorded investment in non-covered loans by portfolio segment and based on impairment method as of September 30, 2018 and December 31, 2017 (in thousands): Commercial Commercial Real Estate Real Estate Non-owner Construction 1-4 Family Other Owner Occupied and Land Commercial Residential Consumer Un- September 30, 2018 Occupied (1) Development Loans (2) Loans allocated Total Ending allowance balance attributable to loans: Individually evaluated for impairment $ - $ - $ - $ - $ - $ - $ - $ - Collectively evaluated for impairment 816 1,212 1,120 6,330 1,656 317 - 11,451 Total ending allowance $ 816 $ 1,212 $ 1,120 $ 6,330 $ 1,656 $ 317 $ - $ 11,451 Loans: Individually evaluated for impairment $ 663 $ - $ - $ 3,384 $ 1,558 $ 19 $ - $ 5,624 Collectively evaluated for impairment 400,176 601,787 186,973 246,567 687,752 32,588 - 2,155,843 Total ending loan balances $ 400,839 $ 601,787 $ 186,973 $ 249,951 $ 689,310 $ 32,607 $ - $ 2,161,467 December 31, 2017 Ending allowance balance attributable to loans: Individually evaluated for impairment $ - $ - $ - $ - $ - $ - $ - $ - Collectively evaluated for impairment 690 1,321 692 4,496 1,586 612 - 9,397 Total ending allowance $ 690 $ 1,321 $ 692 $ 4,496 $ 1,586 $ 612 $ - $ 9,397 Loans: Individually evaluated for impairment $ 767 $ 766 $ 9,969 $ 6,035 $ 3,160 $ - $ - $ 20,697 Collectively evaluated for impairment 401,080 533,864 188,003 247,223 632,675 39,374 - 2,042,219 Total ending loan balances $ 401,847 $ 534,630 $ 197,972 $ 253,258 $ 635,835 $ 39,374 $ - $ 2,062,916 (1) Includes loans secured by farmland and multi-family loans. (2) Includes home equity lines of credit. |
Schedule of the risk category of loans by class of loans | As of September 30, 2018 and December 31, 2017, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows (in thousands): Total Loans Special September 30, 2018 Mention Substandard (3) Pass Total Commercial real estate - owner occupied $ 8,384 $ 1,531 $ 390,924 $ 400,839 Commercial real estate - non-owner occupied (1) 5,172 189 596,426 601,787 Construction and land development - - 186,973 186,973 Commercial loans 5,549 335 244,067 249,951 Residential 1-4 family (2) 851 1,998 686,461 689,310 Other consumer loans 147 - 32,460 32,607 Total $ 20,103 $ 4,053 $ 2,137,311 $ 2,161,467 Total Loans Special December 31, 2017 Mention Substandard (3) Pass Total Commercial real estate - owner occupied $ 4,178 $ 1,678 $ 395,991 $ 401,847 Commercial real estate - non-owner occupied (1) 5,705 830 528,095 534,630 Construction and land development 128 9,969 187,875 197,972 Commercial loans 5,936 6,035 241,287 253,258 Residential 1-4 family (2) 1,323 3,935 630,577 635,835 Other consumer loans 162 - 39,212 39,374 Total $ 17,432 $ 22,447 $ 2,023,037 $ 2,062,916 (1) Includes loans secured by farmland and multi-family residential loans. (2) Includes home equity lines of credit. (3) Includes SBA guarantees of $3.3 million and $5.0 million as of September 30, 2018 and December 31, 2017. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of the denominators of the basic and diluted earnings per share | The following is a reconciliation of the denominators of the basic and diluted earnings per share (“EPS”) computations ( amount s in thousands, except per share data): Weighted Average Income Shares Per Share (Numerator) (Denominator) Amount For the three months ended September 30, 2018 Basic EPS $ 8,861 24,049 $ 0.37 Effect of dilutive stock options and warrants - 271 - Diluted EPS $ 8,861 24,320 $ 0.36 For the three months ended September 30, 2017 Basic EPS $ 4,374 23,913 $ 0.18 Effect of dilutive stock options and warrants - 305 - Diluted EPS $ 4,374 24,218 $ 0.18 For the nine months ended September 30, 2018 Basic EPS $ 25,987 24,017 $ 1.08 Effect of dilutive stock options and warrants - 256 - Diluted EPS $ 25,987 24,273 $ 1.07 For the nine months ended September 30, 2017 Basic EPS $ 3,586 16,526 $ 0.22 Effect of dilutive stock options and warrants - 295 - Diluted EPS $ 3,586 16,821 $ 0.21 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value [Abstract] | |
Schedule of assets measured at fair value on a recurring basis | Assets measured at fair value on a recurring basis are summarized below: Assets measured at fair value on a recurring basis are summarized below: Fair Value Measurements Using Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Total at Identical Assets Inputs Inputs (dollars in thousands) September 30, 2018 (Level 1) (Level 2) (Level 3) Financial assets: Available for sale securities Residential government-sponsored mortgage-backed securities $ 27,613 $ - $ 27,613 $ - Obligations of states and political subdivisions 17,854 - 17,854 - Corporate securities 2,001 - 2,001 - Trust preferred securities 2,695 - 2,695 - Residential government-sponsored collateralized mortgage obligations 43,812 - 43,812 - Government-sponsored agency securities 3,067 - 3,067 - Agency commercial mortgage-backed securities 27,026 - 27,026 - SBA pool securities 20,860 - 20,860 - Total $ 144,928 $ - $ 144,928 $ - Fair Value Measurements Using Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Total at Identical Assets Inputs Inputs (dollars in thousands) December 31, 2017 (Level 1) (Level 2) (Level 3) Financial assets: Available for sale securities Residential government-sponsored mortgage-backed securities $ 30,864 $ - $ 30,864 $ - Obligations of states and political subdivisions 18,727 - 18,727 - Corporate securities 2,015 - 2,015 - Trust preferred securities 2,388 - 2,388 - Residential government-sponsored collateralized mortgage obligations 50,766 - 50,766 - Government-sponsored agency securities 3,226 - 3,226 - Agency commercial mortgage-backed securities 27,898 - 27,898 - SBA pool securities 24,789 - 24,789 - Total $ 160,673 $ - $ 160,673 $ - |
Schedule of assets measured at fair value on non recurring basis | Assets measured at fair value on a non-recurring basis are summarized below: Fair Value Measurements Using Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Total at Identical Assets Inputs Inputs (dollars in thousands) September 30, 2018 (Level 1) (Level 2) (Level 3) Impaired loans: Commercial real estate - owner occupied $ 663 $ - $ - $ 663 Commercial real estate - non-owner occupied (1) - - - - Commercial loans 3,384 - - 3,384 Residential 1-4 family (2) 1,558 - - 1,558 Consumer 19 - - 19 Assets held for sale 600 - - 600 Other real estate owned: Commercial real estate - owner occupied (1) 1,008 - - 1,008 Construction and land development 3,185 - - 3,185 Residential 1-4 family (2) 1,396 - - 1,396 Fair Value Measurements Using Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Total at Identical Assets Inputs Inputs (dollars in thousands) December 31, 2017 (Level 1) (Level 2) (Level 3) Impaired loans: Commercial real estate - owner occupied $ 767 $ - $ - $ 767 Commercial real estate - non-owner occupied (1) 766 - - 766 Construction and land development 9,969 - - 9,969 Commercial loans 6,035 - - 6,035 Residential 1-4 family (2) 3,160 - - 3,160 Assets held for sale 1,927 - - 1,927 Other real estate owned: Commercial real estate - owner occupied (1) 1,060 - - 1,060 Construction and land development 3,229 - - 3,229 Residential 1-4 family (2) 3,288 - - 3,288 (1) Includes loans secured by farmland and multi-family residential loans. (2) Includes home equity lines of credit. |
Schedule of estimated fair values and fair value hierarchy levels of financial instruments | The carrying amount, estimated fair values and fair value hierarchy levels (previously defined) of financial instruments were as follows (in thousands): September 30, 2018 December 31, 2017 Fair Value Carrying Fair Carrying Fair Hierarchy Level Amount Value Amount Value Financial assets: Cash and cash equivalents Level 1 $ 34,463 $ 34,463 $ 25,463 $ 25,463 Securities available for sale Level 2 144,928 144,928 160,673 160,673 Securities held to maturity Level 2 93,865 89,051 98,912 97,597 Stock in Federal Reserve Bank and Federal Home Loan Bank n/a 22,870 n/a 26,775 n/a Equity investment in mortgage affiliate Level 3 4,525 4,525 4,723 4,723 Preferred investment in mortgage affiliate Level 3 3,305 3,305 3,305 3,305 Net loans Level 3 2,149,955 2,139,020 2,052,931 2,058,779 Accrued interest receivable Level 2 & Level 3 8,266 8,266 8,073 8,073 FDIC indemnification asset Level 3 826 309 1,353 309 Financial liabilities: Demand deposits Level 1 $ 653,993 653,993 $ 649,067 $ 649,067 Money market and savings accounts Level 1 464,281 464,281 517,031 517,031 Certificates of deposit Level 3 906,038 899,920 699,058 694,368 Securities sold under agreements to repurchase Level 1 19,431 19,431 15,468 15,468 FHLB short term advances Level 1 242,115 242,115 335,615 335,615 Junior subordinated debt Level 2 9,571 10,048 9,534 12,043 Senior subordinated notes Level 2 47,099 47,265 47,128 58,163 Accrued interest payable Level 1 & Level 3 3,629 3,629 2,273 2,273 |
ACCOUNTING POLICIES (Narrative)
ACCOUNTING POLICIES (Narrative) (Details) $ in Thousands | Dec. 22, 2017 | Mar. 31, 2018USD ($) | Sep. 30, 2018property |
Organization And Significant Accounting Policies [Line Items] | |||
Number of branches | property | 38 | ||
Effective income tax rate reconciliation, at federal statutory income tax rate | 21.00% | ||
Accounting Standards Update 2018-02 [Member] | |||
Organization And Significant Accounting Policies [Line Items] | |||
Expected increase to AOCL | $ | $ 229 |
BUSINESS COMBINATIONS (Narrativ
BUSINESS COMBINATIONS (Narrative) (Details) $ / shares in Units, $ in Thousands | Jun. 23, 2017USD ($)property$ / sharesshares | Sep. 30, 2018USD ($)property | Dec. 31, 2017USD ($) | [1] |
Business Acquisition [Line Items] | ||||
Number of branches | property | 38 | |||
Goodwill | $ 101,954 | $ 100,606 | ||
Core Deposits [Member] | ||||
Business Acquisition [Line Items] | ||||
Estimated useful lives of intangible assets | 96 months | |||
Intangible asset, amortization method used | straight-line method | |||
Customer-Related Intangible Assets [Member] | ||||
Business Acquisition [Line Items] | ||||
Estimated useful lives of intangible assets | 18 months | |||
Intangible asset, amortization method used | straight-line method | |||
Eastern Virginia Bankshares Inc [Member] | ||||
Business Acquisition [Line Items] | ||||
Value of SNBV common stock | $ 198,909 | |||
Share Price | $ / shares | $ 17.21 | |||
Number of branches | property | 24 | |||
Goodwill | $ 91,450 | |||
Amount of loans | 1,031,412 | |||
Unpaid balance related to financing receivables in business combination | 1,050,000 | |||
Amount of discount | 21,400 | |||
Loans held for sale | 19,689 | |||
Fair value of bank-owned real estate | 3,300 | |||
Core deposit intangible | $ 10,025 | |||
Percentage of core deposits to total deposits | 0.90% | |||
Eastern Virginia Bankshares Inc [Member] | Junior Subordinated Debt [Member] | ||||
Business Acquisition [Line Items] | ||||
Debt instrument, unamortized discount (premium), Net | $ 801 | |||
Debt instrument discount (premium) amortization period | 195 months | |||
Eastern Virginia Bankshares Inc [Member] | Senior Subordinated Notes [Member] | ||||
Business Acquisition [Line Items] | ||||
Debt instrument, unamortized discount (premium), Net | $ (1,100) | |||
Debt instrument discount (premium) amortization period | 95 months | |||
Eastern Virginia Bankshares Inc [Member] | Scenario, Adjustment [Member] | ||||
Business Acquisition [Line Items] | ||||
Amount of loans | $ (14,188) | |||
Core deposit intangible | 9,590 | |||
Eastern Virginia Bankshares Inc [Member] | Scenario, Adjustment [Member] | Customer-Related Intangible Assets [Member] | ||||
Business Acquisition [Line Items] | ||||
Estimated fair value adjustment of time deposits | $ 1,200 | |||
Eastern Virginia Bankshares Inc [Member] | Series B Preferred Stock [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of shares issued for each outstanding share of EVBS | shares | 0.6313 | |||
Eastern Virginia Bankshares Inc [Member] | Common Stock [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of shares issued for each outstanding share of EVBS | shares | 0.6313 | |||
[1] | Derived from audited consolidated financial statements |
BUSINESS COMBINATIONS (Schedule
BUSINESS COMBINATIONS (Schedule of Business Acquisitions) (Details) - USD ($) $ in Thousands | Jun. 23, 2017 | Sep. 30, 2018 | Dec. 31, 2017 | [1] |
Identifiable liabilities assumed: | ||||
Goodwill | $ 101,954 | $ 100,606 | ||
Eastern Virginia Bankshares Inc [Member] | ||||
Consideration paid: | ||||
Cash | $ 10 | |||
SNBV common stock | 198,909 | |||
Total consideration paid | 198,919 | |||
Identifiable assets acquired: | ||||
Cash and due from banks | 4,350 | |||
Interest bearing deposits with banks | 18,993 | |||
Federal funds sold | 682 | |||
Securities available for sale, at fair value | 162,879 | |||
Securities held to maturity, at carrying value | 19,544 | |||
Restricted securities, at cost | 6,734 | |||
Amount of loans | 1,031,412 | |||
Loans held for sale | 19,689 | |||
Deferred income taxes | 20,647 | |||
Bank premises and equipment | 28,400 | |||
Assets held for sale | 2,086 | |||
Accrued interest receivable | 4,272 | |||
Other real estate owned | 562 | |||
Core deposit intangible | 10,025 | |||
Bank owned life insurance | 26,035 | |||
Other assets | 10,004 | |||
Total identifiable assets acquired | 1,366,314 | |||
Identifiable liabilities assumed: | ||||
Noninterest-bearing demand accounts | 226,637 | |||
Interest-bearing deposits | 921,925 | |||
Federal funds purchased and repurchase agreements | 7,598 | |||
Federal Home Loan Bank advances | 57,475 | |||
Junior subordinated debt | 9,509 | |||
Senior subordinated notes | 21,051 | |||
Accrued interest payable | 902 | |||
Other liabilities | 13,748 | |||
Total identifiable liabilities assumed | 1,258,845 | |||
Net identifiable assets acquired | 107,469 | |||
Goodwill | 91,450 | |||
Eastern Virginia Bankshares Inc [Member] | Scenario, Previously Reported [Member] | ||||
Identifiable assets acquired: | ||||
Cash and due from banks | 4,350 | |||
Interest bearing deposits with banks | 18,993 | |||
Federal funds sold | 682 | |||
Securities available for sale, at fair value | 163,029 | |||
Securities held to maturity, at carrying value | 19,036 | |||
Restricted securities, at cost | 6,734 | |||
Amount of loans | 1,045,600 | |||
Loans held for sale | 19,689 | |||
Deferred income taxes | 15,735 | |||
Bank premises and equipment | 24,242 | |||
Assets held for sale | 2,970 | |||
Accrued interest receivable | 4,272 | |||
Other real estate owned | 563 | |||
Core deposit intangible | 435 | |||
Bank owned life insurance | 26,035 | |||
Other assets | 10,004 | |||
Total identifiable assets acquired | 1,362,369 | |||
Identifiable liabilities assumed: | ||||
Noninterest-bearing demand accounts | 226,637 | |||
Interest-bearing deposits | 920,743 | |||
Federal funds purchased and repurchase agreements | 7,598 | |||
Federal Home Loan Bank advances | 57,475 | |||
Junior subordinated debt | 10,310 | |||
Senior subordinated notes | 19,175 | |||
Accrued interest payable | 902 | |||
Other liabilities | 12,748 | |||
Total identifiable liabilities assumed | 1,255,588 | |||
Net identifiable assets acquired | 106,781 | |||
Eastern Virginia Bankshares Inc [Member] | Scenario, Adjustment [Member] | ||||
Identifiable assets acquired: | ||||
Securities available for sale, at fair value | (150) | |||
Securities held to maturity, at carrying value | 508 | |||
Amount of loans | (14,188) | |||
Deferred income taxes | 4,912 | |||
Bank premises and equipment | 4,158 | |||
Assets held for sale | (884) | |||
Other real estate owned | (1) | |||
Core deposit intangible | 9,590 | |||
Total identifiable assets acquired | 3,945 | |||
Identifiable liabilities assumed: | ||||
Interest-bearing deposits | 1,182 | |||
Junior subordinated debt | (801) | |||
Senior subordinated notes | 1,876 | |||
Other liabilities | 1,000 | |||
Total identifiable liabilities assumed | 3,257 | |||
Net identifiable assets acquired | $ 688 | |||
[1] | Derived from audited consolidated financial statements |
BUSINESS COMBINATIONS (Schedu_2
BUSINESS COMBINATIONS (Schedule of Amortization and Accretion of Premiums and Discounts Associated with Acquisition Accounting Adjustments to Assets Acquired and Liabilities) (Details) - Eastern Virginia Bankshares Inc [Member] $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Business Acquisition [Line Items] | |
Loans | $ 2,743 |
Time deposits | 592 |
Junior and senior subordinated debt | 63 |
Core deposit intangible | (940) |
Net impact to income before income taxes | $ 2,458 |
BUSINESS COMBINATIONS (Schedu_3
BUSINESS COMBINATIONS (Schedule of Loans and Debt Securities Acquired with Deteriorated Credit Quality) (Details) - Eastern Virginia Bankshares Inc [Member] $ in Thousands | Jun. 23, 2017USD ($) |
Business Acquisition [Line Items] | |
Contractually required principal and interest at acquisition | $ 17,970 |
Contractual cash flows not expected to be collected (nonaccretable difference) | (6,243) |
Expected cash flows at acquisition | 11,727 |
Accretable difference | 398 |
Basis in acquired loans at acquisition - estimated fair value | $ 11,329 |
STOCK-BASED COMPENSATION (Narra
STOCK-BASED COMPENSATION (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2010 | Dec. 31, 2004 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation expense | $ 158 | $ 84 | $ 327 | $ 185 | ||||
Unrecognized compensation expense associated with the stock options | $ 114 | $ 114 | ||||||
Unrecognized compensation cost weighted average recognition period | 1 year 9 months 18 days | |||||||
Stock Option Plan 2004 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares authorized for reservation (in shares) | 302,500 | |||||||
Stock Awards and Incentive Plan 2010 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares authorized for reservation (in shares) | 700,000 | |||||||
Share-based compensation, award term | P10Y | |||||||
Stock Option Plan 2017 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares authorized for reservation (in shares) | 750,000 | |||||||
Employee Stock Option [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Exercises In Period | 58,000 | |||||||
Restricted Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Forfeited, other than options | 700 | 700 | ||||||
Granted | 58,000 |
STOCK-BASED COMPENSATION (Sched
STOCK-BASED COMPENSATION (Schedule of Activity in the Stock Option Plan) (Details) - Employee Stock Option [Member] $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($)$ / sharesshares | |
Shares | |
Options outstanding, beginning of period | shares | 714,967 |
Forfeited | shares | (6,731) |
Exercised | shares | (58,000) |
Options outstanding, end of period | shares | 650,236 |
Exercisable at end of period | shares | 426,916 |
Weighted Average Exercise Price | |
Options outstanding, beginning of period | $ / shares | $ 9.83 |
Forfeited | $ / shares | 10.16 |
Exercised | $ / shares | 7.62 |
Options outstanding, end of period | $ / shares | 10.01 |
Exercisable at end of period | $ / shares | $ 9.02 |
Weighted Average Remaining Contractual Term | |
Options outstanding, end of period | 5 years 2 months 12 days |
Exercisable at end of period | 4 years 1 month 6 days |
Options outstanding, end of period - Aggregate Intrinsic Value | $ | $ 4,133 |
Exercisable at end of period - Aggregate Intrinsic Value | $ | $ 2,556 |
INVESTMENT SECURITIES (Narrativ
INVESTMENT SECURITIES (Narrative) (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Sale of investment available-for-sale | $ 4,767,000 | ||
Investment securities fair values with temporary impairments | $ 218,800,000 | ||
Other than temporary impairment performing collateral will default or defer per annum | 0.50% | ||
Recoveries ranging | 9.00% | ||
Lag period on all default and deferrals | 2 years | ||
Period of no prepayments for security | 10 years | ||
Percentage of prepayments for remaining life of the security | 1.00% | ||
OTTI charges related to credit | $ 0 | $ 0 | |
Federal Home Loan Bank of Atlanta [Member] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Debt instrument, collateral amount | $ 165,700,000 | $ 173,400,000 |
INVESTMENT SECURITIES (Schedule
INVESTMENT SECURITIES (Schedule of Amortized Cost and Fair Value of Securities Available-for-sale) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | $ 150,004 | $ 162,189 | |
Gross Unrealized Gains | 412 | 261 | |
Gross Unrealized Losses | (5,488) | (1,777) | |
Available for sale, fair value | 144,928 | 160,673 | [1] |
Residential Government-sponsored Residential Mortgage-backed Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 28,678 | 31,145 | |
Gross Unrealized Gains | 3 | ||
Gross Unrealized Losses | (1,065) | (284) | |
Available for sale, fair value | 27,613 | 30,864 | |
Obligations of States and Political Subdivisions [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 18,374 | 18,581 | |
Gross Unrealized Gains | 24 | 187 | |
Gross Unrealized Losses | (544) | (41) | |
Available for sale, fair value | 17,854 | 18,727 | |
Corporate Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 2,009 | 2,013 | |
Gross Unrealized Gains | 2 | ||
Gross Unrealized Losses | (8) | ||
Available for sale, fair value | 2,001 | 2,015 | |
Trust preferred securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 2,589 | 2,590 | |
Gross Unrealized Gains | 380 | ||
Gross Unrealized Losses | (274) | (202) | |
Available for sale, fair value | 2,695 | 2,388 | |
Residential Government-sponsored Collateralized Mortgage Obligations [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 45,726 | 51,521 | |
Gross Unrealized Gains | 1 | ||
Gross Unrealized Losses | (1,914) | (756) | |
Available for sale, fair value | 43,812 | 50,766 | |
Government-Sponsored Agency Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 3,247 | 3,247 | |
Gross Unrealized Losses | (180) | (21) | |
Available for sale, fair value | 3,067 | 3,226 | |
Mortgage-backed securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 28,136 | 28,263 | |
Gross Unrealized Losses | (1,110) | (365) | |
Available for sale, fair value | 27,026 | 27,898 | |
SBA Pool Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 21,245 | 24,829 | |
Gross Unrealized Gains | 8 | 68 | |
Gross Unrealized Losses | (393) | (108) | |
Available for sale, fair value | $ 20,860 | $ 24,789 | |
[1] | Derived from audited consolidated financial statements |
INVESTMENT SECURITIES (Schedu_2
INVESTMENT SECURITIES (Schedule of Amortized Cost, Unrecognized Gains and Losses, and Fair Value of Held to Maturity Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | |||
Amortized Cost | $ 93,865 | $ 98,912 | [1] |
Gross Unrecognized Gains | 218 | 382 | |
Gross Unrecognized Losses | (5,032) | (1,697) | |
Securities held to maturity fair value (in dollars) | 89,051 | 97,597 | |
Residential Government-sponsored Residential Mortgage-backed Securities [Member] | |||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | |||
Amortized Cost | 10,047 | 11,500 | |
Gross Unrecognized Gains | 3 | 23 | |
Gross Unrecognized Losses | (373) | (77) | |
Securities held to maturity fair value (in dollars) | 9,677 | 11,446 | |
Obligations of States and Political Subdivisions [Member] | |||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | |||
Amortized Cost | 21,572 | 22,830 | |
Gross Unrecognized Gains | 58 | 169 | |
Gross Unrecognized Losses | (290) | (56) | |
Securities held to maturity fair value (in dollars) | 21,340 | 22,943 | |
Trust preferred securities [Member] | |||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | |||
Amortized Cost | 2,859 | 3,205 | |
Gross Unrecognized Gains | 157 | 165 | |
Gross Unrecognized Losses | (6) | (17) | |
Securities held to maturity fair value (in dollars) | 3,010 | 3,353 | |
Residential Government-sponsored Collateralized Mortgage Obligations [Member] | |||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | |||
Amortized Cost | 6,732 | 8,727 | |
Gross Unrecognized Losses | (149) | (99) | |
Securities held to maturity fair value (in dollars) | 6,583 | 8,628 | |
Government-Sponsored Agency Securities [Member] | |||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | |||
Amortized Cost | 52,655 | 52,650 | |
Gross Unrecognized Gains | 25 | ||
Gross Unrecognized Losses | (4,214) | (1,448) | |
Securities held to maturity fair value (in dollars) | $ 48,441 | $ 51,227 | |
[1] | Derived from audited consolidated financial statements |
INVESTMENT SECURITIES (Schedu_3
INVESTMENT SECURITIES (Schedule of Fair Value and Carrying Amount, if Different, of Debt Securities, by Contractual Maturity) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Held to Maturity, due in one to five years, amortized cost | $ 5,362 | |
Held to Maturity, due in five to ten years, amortized cost | 19,081 | |
Held to maturity, due after ten years, amortized cost | 52,643 | |
Held to maturity, amortized cost | 93,865 | |
Held to Maturity, due in one to five years, fair value | 5,305 | |
Held to Maturity, due in five to ten years, fair value | 17,897 | |
Held to maturity, due after ten years, fair value | 49,589 | |
Held to maturity fair value | 89,051 | $ 97,597 |
Available for Sale, due in one to five years, amortized cost | 3,388 | |
Available for Sale, due in five to ten years, amortized cost | 6,604 | |
Available for sale, due after ten years, amortized cost | 16,227 | |
Available for sale, amortized cost | 150,004 | |
Available for Sale, due in one to five years, fair value | 3,290 | |
Available for Sale, due in five to ten years, fair value | 6,442 | |
Available for sale, due after ten years, fair value | 15,885 | |
Available for sale, Fair value | 144,928 | |
Residential Government-sponsored Residential Mortgage-backed Securities [Member] | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Held to maturity, amortized cost | 10,047 | |
Held to maturity fair value | 9,677 | 11,446 |
Available for sale, amortized cost | 28,678 | |
Available for sale, Fair value | 27,613 | |
Residential Government-sponsored Collateralized Mortgage Obligations [Member] | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Held to maturity, amortized cost | 6,732 | |
Held to maturity fair value | 6,583 | $ 8,628 |
Available for sale, amortized cost | 45,726 | |
Available for sale, Fair value | 43,812 | |
Mortgage-backed securities [Member] | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Available for sale, amortized cost | 28,136 | |
Available for sale, Fair value | 27,026 | |
SBA Pool Securities [Member] | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Available for sale, amortized cost | 21,245 | |
Available for sale, Fair value | $ 20,860 |
INVESTMENT SECURITIES (Schedu_4
INVESTMENT SECURITIES (Schedule of Present Information Regarding Securities in a Continuous Unrealized Loss Position by Duration of Time in a Loss Position) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Available for sale, less than 12 months, fair value | $ 25,119 | $ 131,786 |
Available for sale, less than 12 months, unrealized losses | (622) | (1,593) |
Available for sale, 12 months or more, fair value | 113,615 | 915 |
Available for sale, 12 months or more, unrealized losses | (4,866) | (184) |
Available for sale, total fair value | 138,734 | 132,701 |
Available for sale, total unrealized losses | (5,488) | (1,777) |
Held to maturity, less than 12 months, fair value | 26,012 | 20,158 |
Held to Maturity, less than 12 months unrecognized losses | (882) | (108) |
Held to Maturity, 12 months or more, fair value | 54,078 | 44,056 |
Held to Maturity, 12 months or more, unrecognized losses | (4,150) | (1,589) |
Held to maturity, total fair value | 80,090 | 64,214 |
Held to maturity, total unrecognized losses | (5,032) | (1,697) |
Residential Government-sponsored Residential Mortgage-backed Securities [Member] | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Available for sale, less than 12 months, fair value | 397 | 30,336 |
Available for sale, less than 12 months, unrealized losses | (4) | (284) |
Available for sale, 12 months or more, fair value | 27,397 | |
Available for sale, 12 months or more, unrealized losses | (1,061) | |
Available for sale, total fair value | 27,794 | 30,336 |
Available for sale, total unrealized losses | (1,065) | (284) |
Held to maturity, less than 12 months, fair value | 4,440 | 3,409 |
Held to Maturity, less than 12 months unrecognized losses | (152) | (26) |
Held to Maturity, 12 months or more, fair value | 4,694 | 2,986 |
Held to Maturity, 12 months or more, unrecognized losses | (221) | (51) |
Held to maturity, total fair value | 9,134 | 6,395 |
Held to maturity, total unrecognized losses | (373) | (77) |
Obligations of States and Political Subdivisions [Member] | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Available for sale, less than 12 months, fair value | 11,541 | 4,642 |
Available for sale, less than 12 months, unrealized losses | (408) | (41) |
Available for sale, 12 months or more, fair value | 4,472 | |
Available for sale, 12 months or more, unrealized losses | (136) | |
Available for sale, total fair value | 16,013 | 4,642 |
Available for sale, total unrealized losses | (544) | (41) |
Held to maturity, less than 12 months, fair value | 10,222 | 7,918 |
Held to Maturity, less than 12 months unrecognized losses | (125) | (34) |
Held to Maturity, 12 months or more, fair value | 5,463 | 1,782 |
Held to Maturity, 12 months or more, unrecognized losses | (165) | (22) |
Held to maturity, total fair value | 15,685 | 9,700 |
Held to maturity, total unrecognized losses | (290) | (56) |
Corporate Securities [Member] | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Available for sale, less than 12 months, fair value | 1,001 | |
Available for sale, less than 12 months, unrealized losses | (8) | |
Available for sale, total fair value | 1,001 | |
Available for sale, total unrealized losses | (8) | |
Trust preferred securities [Member] | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Available for sale, less than 12 months, fair value | 1,473 | |
Available for sale, less than 12 months, unrealized losses | (18) | |
Available for sale, 12 months or more, fair value | 825 | 915 |
Available for sale, 12 months or more, unrealized losses | (274) | (184) |
Available for sale, total fair value | 825 | 2,388 |
Available for sale, total unrealized losses | (274) | (202) |
Held to Maturity, 12 months or more, fair value | 247 | 240 |
Held to Maturity, 12 months or more, unrecognized losses | (6) | (17) |
Held to maturity, total fair value | 247 | 240 |
Held to maturity, total unrecognized losses | (6) | (17) |
Residential Government-sponsored Collateralized Mortgage Obligations [Member] | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Available for sale, less than 12 months, fair value | 1,304 | 50,555 |
Available for sale, less than 12 months, unrealized losses | (27) | (756) |
Available for sale, 12 months or more, fair value | 42,510 | |
Available for sale, 12 months or more, unrealized losses | (1,887) | |
Available for sale, total fair value | 43,814 | 50,555 |
Available for sale, total unrealized losses | (1,914) | (756) |
Held to maturity, less than 12 months, fair value | 7,112 | |
Held to Maturity, less than 12 months unrecognized losses | (46) | |
Held to Maturity, 12 months or more, fair value | 6,583 | 1,516 |
Held to Maturity, 12 months or more, unrecognized losses | (149) | (53) |
Held to maturity, total fair value | 6,583 | 8,628 |
Held to maturity, total unrecognized losses | (149) | (99) |
Government-Sponsored Agency Securities [Member] | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Available for sale, less than 12 months, fair value | 1,726 | |
Available for sale, less than 12 months, unrealized losses | (21) | |
Available for sale, 12 months or more, fair value | 3,067 | |
Available for sale, 12 months or more, unrealized losses | (180) | |
Available for sale, total fair value | 3,067 | 1,726 |
Available for sale, total unrealized losses | (180) | (21) |
Held to maturity, less than 12 months, fair value | 11,350 | 1,719 |
Held to Maturity, less than 12 months unrecognized losses | (605) | (2) |
Held to Maturity, 12 months or more, fair value | 37,091 | 37,532 |
Held to Maturity, 12 months or more, unrecognized losses | (3,609) | (1,446) |
Held to maturity, total fair value | 48,441 | 39,251 |
Held to maturity, total unrecognized losses | (4,214) | (1,448) |
Mortgage-backed securities [Member] | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Available for sale, less than 12 months, fair value | 27,898 | |
Available for sale, less than 12 months, unrealized losses | (365) | |
Available for sale, 12 months or more, fair value | 27,026 | |
Available for sale, 12 months or more, unrealized losses | (1,110) | |
Available for sale, total fair value | 27,026 | 27,898 |
Available for sale, total unrealized losses | (1,110) | (365) |
SBA Pool Securities [Member] | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Available for sale, less than 12 months, fair value | 10,876 | 15,156 |
Available for sale, less than 12 months, unrealized losses | (175) | (108) |
Available for sale, 12 months or more, fair value | 8,318 | |
Available for sale, 12 months or more, unrealized losses | (218) | |
Available for sale, total fair value | 19,194 | 15,156 |
Available for sale, total unrealized losses | $ (393) | $ (108) |
INVESTMENT SECURITIES (Schedu_5
INVESTMENT SECURITIES (Schedule of Owned Pooled Trust Preferred Securities) (Details) - Trust preferred securities [Member] $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Security | |
Par value - security | $ 3,069 |
Book value - security | 2,859 |
Estimated fair value - security | 3,010 |
Previously Recognized Cumulative Other Comprehensive Loss | 223 |
Other than temporarily impaired | |
Par value - other than temporarily impaired | 3,650 |
Book value - other than temporarily impaired | 2,589 |
Estimated fair value - other than temporarily impaired | 2,695 |
Cumulative OTTI Related to Credit Loss | 1,060 |
Par value | 6,719 |
Book value | 5,448 |
Estimated fair value | 5,705 |
Alesco VII A1B Senior [Member] | Rating of Moody Aaa, Fitch AAA When Purchased and Moody Aa2, Fitch A Current Ratings [Member] | |
Security | |
Par value - security | 2,812 |
Book value - security | 2,606 |
Estimated fair value - security | $ 2,763 |
Current Deferrals and Defaults - Security | 17.00% |
Previously Recognized Cumulative Other Comprehensive Loss | $ 219 |
MMCF III B Senior Sub [Member] | Rating of Moody A3, Fitch A- When Purchased and Moody Ba1, Fitch BBB Current Ratings [Member] | |
Security | |
Par value - security | 257 |
Book value - security | 253 |
Estimated fair value - security | $ 247 |
Current Deferrals and Defaults - Security | 44.00% |
Previously Recognized Cumulative Other Comprehensive Loss | $ 4 |
TPREF Funding II Mezzanine [Member] | Rating of Moody A1, Fitch A- When Purchased and Moody Caa3, Fitch C Current Ratings [Member] | |
Other than temporarily impaired | |
Par value - other than temporarily impaired | 1,500 |
Book value - other than temporarily impaired | 1,099 |
Estimated fair value - other than temporarily impaired | $ 825 |
Current Deferrals and Defaults - other than temporarily impaired | 28.00% |
Cumulative OTTI Related to Credit Loss | $ 400 |
ALESCO V C1 Mezzanine [Member] | Rating of Moody A2, Fitch A When Purchased and Moody Caa2, Fitch C Current Ratings [Member] | |
Other than temporarily impaired | |
Par value - other than temporarily impaired | 2,150 |
Book value - other than temporarily impaired | 1,490 |
Estimated fair value - other than temporarily impaired | $ 1,870 |
Current Deferrals and Defaults - other than temporarily impaired | 12.00% |
Cumulative OTTI Related to Credit Loss | $ 660 |
INVESTMENT SECURITIES (Schedu_6
INVESTMENT SECURITIES (Schedule of Changes in Accumulated Other Comprehensive Income by Component) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | $ (3,519) | $ (901) | $ (1,152) | [1] | $ (789) |
Other comprehensive income/(loss) before reclassifications | (665) | 163 | (2,803) | 51 | |
Reclassification adjustment from accumulated other comprehensive income to retained earnings for adoption of ASU 2018-02 | (229) | ||||
Ending balance | (4,184) | (738) | (4,184) | (738) | |
Held-to-maturity Securities [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (177) | (158) | (153) | (162) | |
Other comprehensive income/(loss) before reclassifications | 2 | 2 | 8 | 6 | |
Reclassification adjustment from accumulated other comprehensive income to retained earnings for adoption of ASU 2018-02 | (30) | ||||
Ending balance | (175) | (156) | (175) | (156) | |
Unrealized gains (losses) on securities available for sale | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (3,342) | (743) | (999) | (627) | |
Other comprehensive income/(loss) before reclassifications | (667) | 161 | (2,811) | 45 | |
Reclassification adjustment from accumulated other comprehensive income to retained earnings for adoption of ASU 2018-02 | (199) | ||||
Ending balance | $ (4,009) | $ (582) | $ (4,009) | $ (582) | |
[1] | Derived from audited consolidated financial statements |
LOANS AND ALLOWANCE FOR LOAN _3
LOANS AND ALLOWANCE FOR LOAN LOSSES (Narrative) (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018USD ($)contract | Sep. 30, 2017contract | Dec. 31, 2017USD ($) | Jun. 23, 2017USD ($) | |
Accounts Notes And Loans Receivable [Line Items] | ||||
Unpaid principal balance of loans | $ 7,002 | $ 27,872 | ||
Accretable discount on the acquired covered loans | 14,400 | 17,500 | ||
Total loans | $ 2,161,467 | 2,062,916 | ||
TDR, subsequent default, number of contracts | contract | 1 | 1 | ||
TDR, subsequent default, amount | $ 663 | |||
Mortgage loans on real estate, foreclosures | 1,400 | 3,300 | ||
Mortgage loans in process of foreclosure, amount | 336 | 939 | ||
Financing receivable, recorded investment, nonaccrual status | 4,961 | 18,025 | ||
Small Business Administration Loan [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total loans | 3,300 | 5,000 | ||
Eastern Virginia Bankshares Inc [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Loans held for sale | $ 19,689 | |||
Amount of loans | 1,031,412 | |||
Accretable discount on the acquired covered loans | 14,200 | |||
Total loans | 778,000 | |||
Accretable discount on acquired EVBS, GAB, PGFSB and HarVest loans | $ 398 | |||
GAB acquisition | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Loss sharing agreement | 143,400 | |||
Total loans | $ 19,000 | $ 23,300 |
LOANS AND ALLOWANCE FOR LOAN _4
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Loans, net of Unearned Income) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Accounts Notes And Loans Receivable [Line Items] | |||
Total real estate loans | $ 1,878,909 | $ 1,770,284 | |
Gross loans | 2,161,467 | 2,062,916 | |
Less deferred fees on loans | (61) | (588) | |
Loans, net of deferred fees | 2,161,406 | 2,062,328 | [1] |
GAB acquisition | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Gross loans | 19,000 | 23,300 | |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total real estate loans | 186,973 | 197,972 | |
Gross loans | 186,973 | 197,972 | |
Residential Portfolio Segment [Member] | 1-4 Family Residential | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total real estate loans | 558,164 | 483,006 | |
Gross loans | 689,310 | 635,835 | |
Residential Portfolio Segment [Member] | Loans And Leases Receivable Multi Family Residential [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total real estate loans | 85,879 | 70,892 | |
Residential Portfolio Segment [Member] | Home Equity Loan [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total real estate loans | 131,146 | 152,829 | |
Commercial Portfolio Segment [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Gross loans | 249,951 | 253,258 | |
Other consumer loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Gross loans | 32,607 | 39,374 | |
Commercial Real Estate Owner Occupied | Commercial Real Estate Portfolio Segment [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total real estate loans | 400,839 | 401,847 | |
Gross loans | 400,839 | 401,847 | |
Commercial Real Estate Non-owner Occupied | Commercial Real Estate Portfolio Segment [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total real estate loans | 494,554 | 440,700 | |
Gross loans | 601,787 | 534,630 | |
Loans And Leases Receivable Secured By Farmland [Member] | Commercial Real Estate Portfolio Segment [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total real estate loans | $ 21,354 | $ 23,038 | |
[1] | Derived from audited consolidated financial statements |
LOANS AND ALLOWANCE FOR LOAN _5
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Summary of Impaired Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
With no related allowance recorded | ||
With no related allowance recorded - Recorded Investment | $ 5,624 | $ 20,697 |
With no related allowance recorded - Unpaid Principal Balance | 7,002 | 27,872 |
With an allowance recorded | ||
Allowances for loan losses, impaired | ||
Recorded Investment, Grand total | 5,624 | 20,697 |
Unpaid Principal Balance, Grand total | 7,002 | 27,872 |
Small Business Administration Loan [Member] | ||
With an allowance recorded | ||
Recorded Investment, Grand total | 3,300 | 5,000 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | ||
With no related allowance recorded | ||
With no related allowance recorded - Recorded Investment | 663 | 767 |
With no related allowance recorded - Unpaid Principal Balance | 663 | 781 |
With an allowance recorded | ||
Allowances for loan losses, impaired | ||
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | ||
With no related allowance recorded | ||
With no related allowance recorded - Recorded Investment | 766 | |
With no related allowance recorded - Unpaid Principal Balance | 830 | |
With an allowance recorded | ||
Allowances for loan losses, impaired | ||
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
With no related allowance recorded | ||
With no related allowance recorded - Recorded Investment | 9,969 | |
With no related allowance recorded - Unpaid Principal Balance | 9,984 | |
With an allowance recorded | ||
Allowances for loan losses, impaired | ||
Residential Portfolio Segment [Member] | 1-4 Family Residential | ||
With no related allowance recorded | ||
With no related allowance recorded - Recorded Investment | 1,558 | 3,160 |
With no related allowance recorded - Unpaid Principal Balance | 1,823 | 3,430 |
With an allowance recorded | ||
Allowances for loan losses, impaired | ||
Commercial Portfolio Segment [Member] | ||
With no related allowance recorded | ||
With no related allowance recorded - Recorded Investment | 3,384 | 6,035 |
With no related allowance recorded - Unpaid Principal Balance | 4,497 | $ 12,847 |
With an allowance recorded | ||
Allowances for loan losses, impaired | ||
Other consumer loans | ||
With no related allowance recorded | ||
With no related allowance recorded - Recorded Investment | 19 | |
With no related allowance recorded - Unpaid Principal Balance | 19 | |
With an allowance recorded | ||
Allowances for loan losses, impaired |
LOANS AND ALLOWANCE FOR LOAN _6
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Details of Average Recorded Investment and Interest Income for Impaired Loans Recognized by Class of Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
With no related allowance recorded | ||||
With no related allowance recorded, Average Recorded Investment | $ 7,352 | $ 21,402 | $ 7,421 | $ 21,277 |
With no related allowance recorded, Interest Income Recognized | 43 | 284 | 109 | 553 |
Average Recorded Investment, Grand total | 7,352 | 21,402 | 7,421 | 21,277 |
Interest Income Recognized, Grand total | 43 | 284 | 109 | 553 |
Commercial Real Estate Portfolio Segment [Member] | ||||
With no related allowance recorded | ||||
With no related allowance recorded, Average Recorded Investment | 8,206 | |||
With no related allowance recorded, Interest Income Recognized | 323 | |||
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | ||||
With no related allowance recorded | ||||
With no related allowance recorded, Average Recorded Investment | 663 | 1,325 | 663 | 1,328 |
With no related allowance recorded, Interest Income Recognized | 9 | 8 | 26 | 27 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||||
With no related allowance recorded | ||||
With no related allowance recorded, Average Recorded Investment | 9,984 | |||
With no related allowance recorded, Interest Income Recognized | 153 | |||
Residential Portfolio Segment [Member] | 1-4 Family Residential | ||||
With no related allowance recorded | ||||
With no related allowance recorded, Average Recorded Investment | 1,821 | 1,807 | 2,005 | 1,809 |
With no related allowance recorded, Interest Income Recognized | 22 | 12 | 52 | 45 |
Commercial Portfolio Segment [Member] | ||||
With no related allowance recorded | ||||
With no related allowance recorded, Average Recorded Investment | 4,849 | 8,286 | 4,732 | |
With no related allowance recorded, Interest Income Recognized | 12 | $ 111 | 31 | |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | ||||
With no related allowance recorded | ||||
With no related allowance recorded, Average Recorded Investment | 9,934 | |||
With no related allowance recorded, Interest Income Recognized | $ 158 | |||
Other consumer loans | ||||
With no related allowance recorded | ||||
With no related allowance recorded, Average Recorded Investment | $ 19 | $ 21 |
LOANS AND ALLOWANCE FOR LOAN _7
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Details of Aging of the Recorded Investment in Past Due loans by Class of Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | $ 7,824 | $ 5,999 |
Recorded Investment, Nonaccrual Loans | 4,961 | 18,025 |
Recorded Investment, Loans Not Past Due | 2,148,682 | 2,038,892 |
Gross loans | 2,161,467 | 2,062,916 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 6,556 | 5,438 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 1,268 | 561 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 2,743 | 687 |
Recorded Investment, Loans Not Past Due | 398,096 | 401,160 |
Gross loans | 400,839 | 401,847 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 2,065 | 687 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 678 | |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 42 | 188 |
Recorded Investment, Loans Not Past Due | 601,745 | 534,442 |
Gross loans | 601,787 | 534,630 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 42 | 138 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 50 | |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 84 | 1,283 |
Recorded Investment, Nonaccrual Loans | 9,969 | |
Recorded Investment, Loans Not Past Due | 186,889 | 186,720 |
Gross loans | 186,973 | 197,972 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 84 | 1,134 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 149 | |
Residential Portfolio Segment [Member] | 1-4 Family Residential | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 4,052 | 3,287 |
Recorded Investment, Nonaccrual Loans | 1,558 | 2,392 |
Recorded Investment, Loans Not Past Due | 683,700 | 630,156 |
Gross loans | 689,310 | 635,835 |
Residential Portfolio Segment [Member] | 1-4 Family Residential | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 3,505 | 2,926 |
Residential Portfolio Segment [Member] | 1-4 Family Residential | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 547 | 361 |
Commercial Portfolio Segment [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 871 | 496 |
Recorded Investment, Nonaccrual Loans | 3,384 | 5,664 |
Recorded Investment, Loans Not Past Due | 245,696 | 247,098 |
Gross loans | 249,951 | 253,258 |
Commercial Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 853 | 496 |
Commercial Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 18 | |
Other consumer loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 32 | 58 |
Recorded Investment, Nonaccrual Loans | 19 | |
Recorded Investment, Loans Not Past Due | 32,556 | 39,316 |
Gross loans | 32,607 | 39,374 |
Other consumer loans | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 7 | 57 |
Other consumer loans | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | $ 25 | $ 1 |
LOANS AND ALLOWANCE FOR LOAN _8
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Activity for Loan and Lease Losses By Class of Loan) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | $ 11,000 | $ 9,197 | $ 9,397 | [1] | $ 8,610 |
Charge offs | (604) | (5,373) | (1,984) | (6,765) | |
Recoveries | 5 | 180 | 338 | 559 | |
Provision for loan losses | 1,050 | 5,250 | 3,700 | 6,850 | |
Ending balance | 11,451 | 9,254 | 11,451 | 9,254 | |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 750 | 938 | 690 | 905 | |
Recoveries | 4 | 7 | 11 | 28 | |
Provision for loan losses | 62 | (129) | 115 | (117) | |
Ending balance | 816 | 816 | 816 | 816 | |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 1,293 | 1,790 | 1,321 | 1,484 | |
Charge offs | (100) | ||||
Recoveries | 299 | ||||
Provision for loan losses | (81) | (260) | (109) | (153) | |
Ending balance | 1,212 | 1,530 | 1,212 | 1,530 | |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 873 | 1,096 | 692 | 752 | |
Provision for loan losses | 247 | (293) | 428 | 51 | |
Ending balance | 1,120 | 803 | 1,120 | 803 | |
Residential Portfolio Segment [Member] | 1-4 Family Residential | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 1,579 | 1,423 | 1,586 | 1,279 | |
Charge offs | (200) | (461) | (319) | ||
Recoveries | 4 | 2 | 94 | 6 | |
Provision for loan losses | 273 | 15 | 437 | 474 | |
Ending balance | 1,656 | 1,440 | 1,656 | 1,440 | |
Commercial Portfolio Segment [Member] | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 6,306 | 2,691 | 4,496 | 3,366 | |
Charge offs | (366) | (5,316) | (1,303) | (6,283) | |
Recoveries | 15 | 170 | 222 | 221 | |
Provision for loan losses | 375 | 6,629 | 2,915 | 6,870 | |
Ending balance | 6,330 | 4,174 | 6,330 | 4,174 | |
Other consumer loans | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 199 | 84 | 612 | 78 | |
Charge offs | (38) | (57) | (220) | (63) | |
Recoveries | (18) | 1 | 11 | 5 | |
Provision for loan losses | 174 | 297 | (86) | 305 | |
Ending balance | $ 317 | 325 | $ 317 | 325 | |
Unallocated | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 1,175 | 746 | |||
Provision for loan losses | (1,009) | (580) | |||
Ending balance | $ 166 | $ 166 | |||
[1] | Derived from audited consolidated financial statements |
LOANS AND ALLOWANCE FOR LOAN _9
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Allowance for Loan Losses and the Recorded Investment by Portfolio Segment) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Ending allowance balance attributable to loans: | |||||||
Collectively evaluated for impairment | $ 11,451 | $ 9,397 | |||||
Total ending allowance | 11,451 | $ 11,000 | 9,397 | [1] | $ 9,254 | $ 9,197 | $ 8,610 |
Loans: | |||||||
Individually evaluated for impairment | 5,624 | 20,697 | |||||
Collectively evaluated for impairment | 2,155,843 | 2,042,219 | |||||
Total ending loan balances | 2,161,467 | 2,062,916 | |||||
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | |||||||
Ending allowance balance attributable to loans: | |||||||
Collectively evaluated for impairment | 816 | 690 | |||||
Total ending allowance | 816 | 750 | 690 | 816 | 938 | 905 | |
Loans: | |||||||
Individually evaluated for impairment | 663 | 767 | |||||
Collectively evaluated for impairment | 400,176 | 401,080 | |||||
Total ending loan balances | 400,839 | 401,847 | |||||
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | |||||||
Ending allowance balance attributable to loans: | |||||||
Collectively evaluated for impairment | 1,212 | 1,321 | |||||
Total ending allowance | 1,212 | 1,293 | 1,321 | 1,530 | 1,790 | 1,484 | |
Loans: | |||||||
Individually evaluated for impairment | 766 | ||||||
Collectively evaluated for impairment | 601,787 | 533,864 | |||||
Total ending loan balances | 601,787 | 534,630 | |||||
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | |||||||
Ending allowance balance attributable to loans: | |||||||
Collectively evaluated for impairment | 1,120 | 692 | |||||
Total ending allowance | 1,120 | 873 | 692 | 803 | 1,096 | 752 | |
Loans: | |||||||
Individually evaluated for impairment | 9,969 | ||||||
Collectively evaluated for impairment | 186,973 | 188,003 | |||||
Total ending loan balances | 186,973 | 197,972 | |||||
Residential Portfolio Segment [Member] | 1-4 Family Residential | |||||||
Ending allowance balance attributable to loans: | |||||||
Collectively evaluated for impairment | 1,656 | 1,586 | |||||
Total ending allowance | 1,656 | 1,579 | 1,586 | 1,440 | 1,423 | 1,279 | |
Loans: | |||||||
Individually evaluated for impairment | 1,558 | 3,160 | |||||
Collectively evaluated for impairment | 687,752 | 632,675 | |||||
Total ending loan balances | 689,310 | 635,835 | |||||
Commercial Portfolio Segment [Member] | |||||||
Ending allowance balance attributable to loans: | |||||||
Collectively evaluated for impairment | 6,330 | 4,496 | |||||
Total ending allowance | 6,330 | 6,306 | 4,496 | 4,174 | 2,691 | 3,366 | |
Loans: | |||||||
Individually evaluated for impairment | 3,384 | 6,035 | |||||
Collectively evaluated for impairment | 246,567 | 247,223 | |||||
Total ending loan balances | 249,951 | 253,258 | |||||
Other consumer loans | |||||||
Ending allowance balance attributable to loans: | |||||||
Collectively evaluated for impairment | 317 | 612 | |||||
Total ending allowance | 317 | $ 199 | 612 | 325 | 84 | 78 | |
Loans: | |||||||
Individually evaluated for impairment | 19 | ||||||
Collectively evaluated for impairment | 32,588 | 39,374 | |||||
Total ending loan balances | $ 32,607 | $ 39,374 | |||||
Unallocated | |||||||
Ending allowance balance attributable to loans: | |||||||
Total ending allowance | $ 166 | $ 1,175 | $ 746 | ||||
[1] | Derived from audited consolidated financial statements |
LOANS AND ALLOWANCE FOR LOAN_10
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of the Risk Category of Loans by Class of Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | $ 2,161,467 | $ 2,062,916 |
Special Mention [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 20,103 | 17,432 |
Substandard [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 4,053 | 22,447 |
Pass [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 2,137,311 | 2,023,037 |
Small Business Administration Loan [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 3,300 | 5,000 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 400,839 | 401,847 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | Special Mention [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 8,384 | 4,178 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | Substandard [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 1,531 | 1,678 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | Pass [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 390,924 | 395,991 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 601,787 | 534,630 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | Special Mention [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 5,172 | 5,705 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | Substandard [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 189 | 830 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | Pass [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 596,426 | 528,095 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 186,973 | 197,972 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Special Mention [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 128 | |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Substandard [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 9,969 | |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Pass [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 186,973 | 187,875 |
Residential Portfolio Segment [Member] | 1-4 Family Residential | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 689,310 | 635,835 |
Residential Portfolio Segment [Member] | 1-4 Family Residential | Special Mention [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 851 | 1,323 |
Residential Portfolio Segment [Member] | 1-4 Family Residential | Substandard [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 1,998 | 3,935 |
Residential Portfolio Segment [Member] | 1-4 Family Residential | Pass [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 686,461 | 630,577 |
Commercial Portfolio Segment [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 249,951 | 253,258 |
Commercial Portfolio Segment [Member] | Special Mention [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 5,549 | 5,936 |
Commercial Portfolio Segment [Member] | Substandard [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 335 | 6,035 |
Commercial Portfolio Segment [Member] | Pass [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 244,067 | 241,287 |
Other consumer loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 32,607 | 39,374 |
Other consumer loans | Special Mention [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 147 | 162 |
Other consumer loans | Pass [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | $ 32,460 | $ 39,212 |
FINANCIAL INSTRUMENTS WITH OF_2
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Line of Credit Facility [Line Items] | ||
Unfunded lines of credit and undisbursed construction loan funds | $ 357.3 | $ 361.7 |
Letter Of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Letters of credit outstanding | $ 17.1 | $ 15.2 |
EARNINGS PER SHARE (Narrative)
EARNINGS PER SHARE (Narrative) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Employee Stock Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive options and warrants (in shares) | 379,599 | 394,225 | ||
Stock Options and Warrants [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive options and warrants (in shares) | 480,729 | 467,977 |
EARNINGS PER SHARE (Schedule of
EARNINGS PER SHARE (Schedule of Reconciliation of the Denominators of the Basic and Diluted Earnings per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Basic EPS - Income (Numerator) (in dollars) | $ 8,861 | $ 4,374 | $ 25,987 | $ 3,586 |
Diluted EPS - Income (Numerator) | $ 8,861 | $ 4,374 | $ 25,987 | $ 3,586 |
Basic EPS- Weighted Average Shares (Denominator) (in shares) | 24,049 | 23,913 | 24,017 | 16,526 |
Effect of dilutive stock options and warrants- Weighted Average Shares (Denominator) (in shares) | 271 | 305 | 256 | 295 |
Diluted EPS- Weighted Average Shares (Denominator) (in shares) | 24,320 | 24,218 | 24,273 | 16,821 |
Basic EPS - Per Share Amount (in dollars per share) | $ 0.37 | $ 0.18 | $ 1.08 | $ 0.22 |
Diluted EPS- Per Share Amount (in dollars per share) | $ 0.36 | $ 0.18 | $ 1.07 | $ 0.21 |
FAIR VALUE (Narrative) (Details
FAIR VALUE (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | ||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Impaired financing receivable, recorded investment | $ 5,624 | $ 20,697 | |||||
Allowances for loan losses, impaired | |||||||
Allowances for loan losses | 11,451 | 9,397 | [1] | $ 11,000 | $ 9,254 | $ 9,197 | $ 8,610 |
Other real estate owned | $ 5,589 | $ 7,577 | [1] | ||||
Impaired Receivable [Member] | Minimum [Member] | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Fair value of estimated costs related to selling the collateral | 6.00% | 6.00% | |||||
Impaired Receivable [Member] | Maximum [Member] | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Fair value of estimated costs related to selling the collateral | 10.00% | 10.00% | |||||
Other Real Estate Owned [Member] | Minimum [Member] | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Fair value of estimated costs related to selling the collateral | 5.00% | 5.00% | |||||
Other Real Estate Owned [Member] | Maximum [Member] | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Fair value of estimated costs related to selling the collateral | 7.60% | 7.60% | |||||
Fair Value, Inputs, Level 3 [Member] | Non-covered loans | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Impaired financing receivable, recorded investment | $ 5,600 | $ 20,700 | |||||
Allowances for loan losses | 0 | 0 | |||||
Small Business Administration Loan [Member] | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Impaired financing receivable, recorded investment | 3,300 | 5,000 | |||||
Small Business Administration Loan [Member] | Non-covered loans | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Impaired financing receivable, recorded investment | $ 5,000 | ||||||
Small Business Administration Loan [Member] | Fair Value, Inputs, Level 3 [Member] | Non-covered loans | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Impaired financing receivable, recorded investment | $ 3,300 | ||||||
[1] | Derived from audited consolidated financial statements |
FAIR VALUE (Schedule of Assets
FAIR VALUE (Schedule of Assets Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Available for sale securities | |||
Fair value | $ 144,928 | $ 160,673 | [1] |
Fair Value | Fair Value, Inputs, Level 2 [Member] | |||
Available for sale securities | |||
Fair value | 144,928 | 160,673 | |
Fair Value, Measurements, Recurring [Member] | |||
Available for sale securities | |||
Fair value | 144,928 | 160,673 | |
Fair Value, Measurements, Recurring [Member] | Residential Government-sponsored Residential Mortgage-backed Securities [Member] | |||
Available for sale securities | |||
Fair value | 27,613 | 30,864 | |
Fair Value, Measurements, Recurring [Member] | Obligations of States and Political Subdivisions [Member] | |||
Available for sale securities | |||
Fair value | 17,854 | 18,727 | |
Fair Value, Measurements, Recurring [Member] | Corporate Securities [Member] | |||
Available for sale securities | |||
Fair value | 2,001 | 2,015 | |
Fair Value, Measurements, Recurring [Member] | Residential Government-sponsored Collateralized Mortgage Obligations [Member] | |||
Available for sale securities | |||
Fair value | 43,812 | 50,766 | |
Fair Value, Measurements, Recurring [Member] | Government-Sponsored Agency Securities [Member] | |||
Available for sale securities | |||
Fair value | 3,067 | 3,226 | |
Fair Value, Measurements, Recurring [Member] | Mortgage-backed securities [Member] | |||
Available for sale securities | |||
Fair value | 27,026 | 27,898 | |
Fair Value, Measurements, Recurring [Member] | SBA Pool Securities [Member] | |||
Available for sale securities | |||
Fair value | 20,860 | 24,789 | |
Fair Value, Measurements, Recurring [Member] | Trust preferred securities [Member] | |||
Available for sale securities | |||
Fair value | 2,695 | 2,388 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Available for sale securities | |||
Fair value | 144,928 | 160,673 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Residential Government-sponsored Residential Mortgage-backed Securities [Member] | |||
Available for sale securities | |||
Fair value | 27,613 | 30,864 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Obligations of States and Political Subdivisions [Member] | |||
Available for sale securities | |||
Fair value | 17,854 | 18,727 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Securities [Member] | |||
Available for sale securities | |||
Fair value | 2,001 | 2,015 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Residential Government-sponsored Collateralized Mortgage Obligations [Member] | |||
Available for sale securities | |||
Fair value | 43,812 | 50,766 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Government-Sponsored Agency Securities [Member] | |||
Available for sale securities | |||
Fair value | 3,067 | 3,226 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage-backed securities [Member] | |||
Available for sale securities | |||
Fair value | 27,026 | 27,898 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | SBA Pool Securities [Member] | |||
Available for sale securities | |||
Fair value | 20,860 | 24,789 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Trust preferred securities [Member] | |||
Available for sale securities | |||
Fair value | $ 2,695 | $ 2,388 | |
[1] | Derived from audited consolidated financial statements |
FAIR VALUE (Schedule of Asset_2
FAIR VALUE (Schedule of Assets Measured at Fair Value on Non-recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale | $ 600 | $ 1,927 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale | 600 | 1,927 |
Commercial Portfolio Segment [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 19 | |
Commercial Portfolio Segment [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 19 | |
Commercial Portfolio Segment [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 3,384 | 6,035 |
Commercial Portfolio Segment [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 3,384 | 6,035 |
Construction Loans [Member] | Commercial Real Estate Portfolio Segment [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 9,969 | |
Other real estate owned | 3,185 | 3,229 |
Construction Loans [Member] | Commercial Real Estate Portfolio Segment [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 9,969 | |
Other real estate owned | 3,185 | 3,229 |
1-4 Family Residential | Residential Portfolio Segment [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 1,558 | 3,160 |
Other real estate owned | 1,396 | 3,288 |
1-4 Family Residential | Residential Portfolio Segment [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 1,558 | 3,160 |
Other real estate owned | 1,396 | 3,288 |
Commercial Real Estate Owner Occupied | Commercial Real Estate Portfolio Segment [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 663 | 767 |
Other real estate owned | 1,008 | 1,060 |
Commercial Real Estate Owner Occupied | Commercial Real Estate Portfolio Segment [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 663 | 767 |
Other real estate owned | $ 1,008 | 1,060 |
Commercial Real Estate Non-owner Occupied | Commercial Real Estate Portfolio Segment [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 766 | |
Commercial Real Estate Non-owner Occupied | Commercial Real Estate Portfolio Segment [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 766 |
FAIR VALUE (Schedule of Estimat
FAIR VALUE (Schedule of Estimated Fair Values and Fair Value Hierarchy Levels of Financial Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | |
Financial assets: | |||||
Cash and cash equivalents | $ 34,463 | $ 25,463 | [1] | $ 23,320 | $ 47,392 |
Securities available for sale | 144,928 | 160,673 | [1] | ||
Securities held to maturity, at amortized cost (fair value of $89,051 and $97,597, respectively) | 93,865 | 98,912 | [1] | ||
Stock in Federal Reserve Bank and Federal Home Loan Bank | 22,870 | 26,775 | [1] | ||
Equity investment in mortgage affiliate | 4,525 | 4,723 | [1] | ||
Preferred investment in mortgage affiliate | 3,305 | 3,305 | [1] | ||
FDIC indemnification asset | 826 | 1,353 | [1] | ||
Financial liabilities: | |||||
Certificates of deposit | 906,038 | 699,058 | [1] | ||
Securities sold under agreements to repurchase | 19,431 | 15,468 | [1] | ||
Junior subordinated debt - long term | 9,571 | 9,534 | [1] | ||
Senior subordinated notes - long term | 47,099 | 47,128 | [1] | ||
Fair Value | Fair Value, Inputs, Level 1 [Member] | |||||
Financial assets: | |||||
Cash and cash equivalents | 34,463 | 25,463 | |||
Financial liabilities: | |||||
Demand deposits | 653,993 | 649,067 | |||
Money market and savings accounts | 464,281 | 517,031 | |||
Securities sold under agreements to repurchase | 19,431 | 15,468 | |||
FHLB advances | 242,115 | 335,615 | |||
Fair Value | Fair Value, Inputs, Level 2 [Member] | |||||
Financial assets: | |||||
Securities available for sale | 144,928 | 160,673 | |||
Securities held to maturity, at amortized cost (fair value of $89,051 and $97,597, respectively) | 89,051 | 97,597 | |||
Financial liabilities: | |||||
Junior subordinated debt - long term | 10,048 | 12,043 | |||
Senior subordinated notes - long term | 47,265 | 58,163 | |||
Fair Value | Fair Value, Inputs, Level 3 [Member] | |||||
Financial assets: | |||||
Equity investment in mortgage affiliate | 4,525 | 4,723 | |||
Preferred investment in mortgage affiliate | 3,305 | 3,305 | |||
Net loans | 2,139,020 | 2,058,779 | |||
FDIC indemnification asset | 309 | 309 | |||
Financial liabilities: | |||||
Certificates of deposit | 899,920 | 694,368 | |||
Fair Value | Fair Value Inputs Level 1 and Level 3 [Member] | |||||
Financial liabilities: | |||||
Accrued interest payable | 3,629 | 2,273 | |||
Fair Value | Fair Value Inputs Level 2 and Level 3 [Member] | |||||
Financial assets: | |||||
Accrued interest receivable | 8,266 | 8,073 | |||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | |||||
Financial assets: | |||||
Stock in Federal Reserve Bank and Federal Home Loan Bank | 22,870 | 26,775 | |||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Financial assets: | |||||
Cash and cash equivalents | 34,463 | 25,463 | |||
Financial liabilities: | |||||
Demand deposits | 653,993 | 649,067 | |||
Money market and savings accounts | 464,281 | 517,031 | |||
Securities sold under agreements to repurchase | 19,431 | 15,468 | |||
FHLB advances | 242,115 | 335,615 | |||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Financial assets: | |||||
Securities available for sale | 144,928 | 160,673 | |||
Securities held to maturity, at amortized cost (fair value of $89,051 and $97,597, respectively) | 93,865 | 98,912 | |||
Financial liabilities: | |||||
Junior subordinated debt - long term | 9,571 | 9,534 | |||
Senior subordinated notes - long term | 47,099 | 47,128 | |||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Financial assets: | |||||
Equity investment in mortgage affiliate | 4,525 | 4,723 | |||
Preferred investment in mortgage affiliate | 3,305 | 3,305 | |||
Net loans | 2,149,955 | 2,052,931 | |||
FDIC indemnification asset | 826 | 1,353 | |||
Financial liabilities: | |||||
Certificates of deposit | 906,038 | 699,058 | |||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Fair Value Inputs Level 1 and Level 3 [Member] | |||||
Financial liabilities: | |||||
Accrued interest payable | 3,629 | 2,273 | |||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Fair Value Inputs Level 2 and Level 3 [Member] | |||||
Financial assets: | |||||
Accrued interest receivable | $ 8,266 | $ 8,073 | |||
[1] | Derived from audited consolidated financial statements |
SECURITIES SOLD UNDER AGREEME_2
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Jun. 23, 2017 |
Federal Home Loan Bank, Advances, Branch Of FHLB Bank [Line Items] | |||
Federal Funds Purchased and Securities Sold under Agreements to Repurchase | $ 19.4 | $ 15.5 | |
Eastern Virginia Bankshares Inc [Member] | |||
Federal Home Loan Bank, Advances, Branch Of FHLB Bank [Line Items] | |||
Federal Funds Purchased and Securities Sold under Agreements to Repurchase | $ 7.6 |
JUNIOR SUBORDINATED DEBT AND _2
JUNIOR SUBORDINATED DEBT AND SENIOR SUBORDINATED NOTES (Narrative) (Details) $ in Thousands | Jan. 20, 2017USD ($) | Apr. 22, 2015USD ($) | Sep. 17, 2003USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2017 | Jun. 23, 2017USD ($) |
Senior Subordinated Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from subordinated notes | $ 27,000 | |||||
Interest rate percentage | 5.875% | |||||
Basis spread on LIBOR | 3.95% | |||||
Unamortized debt issuance costs | $ 784 | |||||
Eastern Virginia Bankshares Inc [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Notes assumed in merger | $ 10,300 | |||||
Junior subordinated debt | $ 9,509 | |||||
Senior subordinated notes | 21,051 | |||||
Pooled underwriting amount | $ 650,000 | |||||
Eastern Virginia Bankshares Inc [Member] | Junior Subordinated Debt [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate percentage | 5.28% | 4.55% | ||||
Description of variable rate basis | three-month LIBOR | |||||
Basis spread on LIBOR | 2.95% | |||||
Percentage of tier one capital for regulatory capital adequacy | 25.00% | |||||
Eastern Virginia Bankshares Inc [Member] | Senior Subordinated Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from subordinated notes | $ 20,000 | |||||
Interest rate percentage | 6.50% | |||||
Percentage of aggregate principle amount | 100.00% | |||||
Debt instrument basis points spread | 5.02 | |||||
Scenario, Adjustment [Member] | Eastern Virginia Bankshares Inc [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Junior subordinated debt | (801) | |||||
Senior subordinated notes | $ 1,876 |