Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 07, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Southern National Bancorp of Virginia Inc | ||
Entity Central Index Key | 0001325670 | ||
Trading Symbol | sona | ||
Entity Current Reporting Status | Yes | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 24,118,003 | ||
Entity Public Float | $ 403.7 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and cash equivalents: | ||
Cash and due from financial institutions | $ 6,939 | $ 7,937 |
Interest-bearing deposits in other financial institutions | 20,877 | 15,815 |
Federal funds sold | 795 | 1,711 |
Total cash and cash equivalents | 28,611 | 25,463 |
Securities available for sale, at fair value | 143,377 | 160,673 |
Securities held to maturity, at amortized cost (fair value of $89,109 and $97,597, respectively) | 92,462 | 98,912 |
Loans | 2,178,824 | 2,062,328 |
Less allowance for loan losses | (12,283) | (9,397) |
Net loans | 2,166,541 | 2,052,931 |
Stock in Federal Reserve Bank and Federal Home Loan Bank | 19,522 | 26,775 |
Equity investment in mortgage affiliate | 3,829 | 4,723 |
Preferred investment in mortgage affiliate | 3,305 | 3,305 |
Bank premises and equipment, net | 32,352 | 35,788 |
Goodwill | 101,954 | 100,606 |
Core deposit intangibles, net | 8,609 | 10,054 |
Bank-owned life insurance | 62,495 | 50,790 |
Other real estate owned | 5,077 | 7,577 |
Deferred tax assets, net | 14,104 | 16,903 |
Other assets | 19,057 | 19,752 |
Total assets | 2,701,295 | 2,614,252 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Noninterest-bearing demand deposits | 320,043 | 319,189 |
Interest-bearing deposits: | ||
NOW accounts | 345,597 | 329,878 |
Money market accounts | 355,469 | 355,084 |
Savings accounts | 151,050 | 161,947 |
Time deposits | 925,441 | 699,058 |
Total interest-bearing deposits | 1,777,557 | 1,545,967 |
Total deposits | 2,097,600 | 1,865,156 |
Securities sold under agreements to repurchase-short term | 18,721 | 15,468 |
Federal Home Loan Bank (FHLB) advances-short term | 163,340 | 335,615 |
Junior subordinated debt - long term | 9,584 | 9,534 |
Senior subordinated notes-long term | 47,089 | 47,128 |
Other liabilities | 16,671 | 18,579 |
Total liabilities | 2,353,005 | 2,291,480 |
Commitments and contingencies (See Note 15) | ||
Stockholders' equity: | ||
Common stock, $0.01 par value. Authorized 45,000,000 shares; 24,052,253 and 23,936,453 shares issued and outstanding at December 31, 2018 and 2017, respectively | 240 | 239 |
Additional paid in capital | 305,654 | 304,932 |
Retained earnings | 44,985 | 18,753 |
Accumulated other comprehensive loss | (2,589) | (1,152) |
Total stockholders' equity | 348,290 | 322,772 |
Total liabilities and stockholders' equity | $ 2,701,295 | $ 2,614,252 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Securities held to maturity fair value (in dollars) | $ 89,109 | $ 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 | 24,052,253 | 23,936,453 |
Common stock, shares outstanding | 24,052,253 | 23,936,453 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest and dividend income: | |||
Interest and fees on loans | $ 110,213 | $ 77,764 | $ 45,348 |
Interest and dividends on taxable securities | 5,752 | 4,077 | 2,619 |
Interest and dividends on tax exempt securities | 634 | 492 | 336 |
Interest and dividends on other earning assets | 2,256 | 1,231 | 644 |
Interest on federal funds sold | 52 | 6 | |
Total interest and dividend income | 118,907 | 83,570 | 48,947 |
Interest expense: | |||
Interest on deposits | 18,235 | 10,993 | 8,101 |
Interest on repurchase agreements | 97 | 36 | 18 |
Interest on junior subordinated debt | 575 | 253 | |
Interest on senior subordinated notes | 2,847 | 2,194 | |
Interest on borrowings | 6,087 | 2,177 | 514 |
Total interest expense | 27,841 | 15,653 | 8,633 |
Net interest income | 91,066 | 67,917 | 40,314 |
Provision for loan losses | 4,200 | 8,625 | 4,912 |
Net interest income after provision for loan losses | 86,866 | 59,292 | 35,402 |
Noninterest income: | |||
Account maintenance and deposit service fees | 5,959 | 3,564 | 896 |
Income from bank-owned life insurance | 1,983 | 929 | 700 |
Equity gain (loss) from mortgage affiliate | (894) | (345) | 1,109 |
Gain on sales of investment securities | 255 | ||
Recoveries related to acquired charged-off loans and investment securities | 2,610 | 757 | |
Portion of OTTI recognized in other comprehensive income (before taxes) | (1,060) | ||
Other | 541 | 269 | 115 |
Total noninterest income | 10,199 | 5,429 | 2,820 |
Noninterest expenses: | |||
Salaries and benefits | 27,706 | 20,285 | 11,675 |
Occupancy expenses | 6,628 | 4,809 | 3,155 |
Furniture and equipment expenses | 2,795 | 2,228 | 975 |
Amortization of core deposit intangible | 1,445 | 845 | 219 |
Virginia franchise tax expense | 1,839 | 969 | 387 |
FDIC assessment | 1,065 | 802 | 543 |
Data processing expense | 1,885 | 1,140 | 744 |
Telephone and communication expense | 2,035 | 1,422 | 745 |
Amortization of FDIC indemnification asset | 764 | 712 | 793 |
Net loss on other real estate owned | 360 | 520 | 174 |
Merger expenses | 9,426 | 429 | |
Other operating expenses | 7,238 | 5,991 | 2,976 |
Total noninterest expenses | 53,760 | 49,149 | 22,815 |
Income before income taxes | 43,305 | 15,572 | 15,407 |
Income tax expense | 9,614 | 13,147 | 5,095 |
Net income | 33,691 | 2,425 | 10,312 |
Other comprehensive loss: | |||
Unrealized loss on available for sale securities | (1,548) | (309) | (284) |
Realized amounts on securities sold, net | (255) | ||
Accretion of amounts previously recorded upon transfer to held to maturity from available for sale | 16 | 13 | 12 |
Net unrealized loss | (1,532) | (551) | (272) |
Tax effect | (324) | (188) | (93) |
Other comprehensive loss | (1,208) | (363) | (179) |
Comprehensive income | $ 32,483 | $ 2,062 | $ 10,133 |
Earnings per share, basic (in dollars per share) | $ 1.40 | $ 0.13 | $ 0.84 |
Earnings per share, diluted (in dollars per share) | $ 1.39 | $ 0.13 | $ 0.83 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - 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, 2015 | $ 122 | $ 104,389 | $ 15,735 | $ (610) | $ 119,636 |
Comprehensive income | |||||
Net income | 10,312 | 10,312 | |||
Change in unrealized loss on securities available for sale (net of tax benefit, $97, $192 2018 and 2017 respectively) | (187) | (187) | |||
Change in unrecognized loss on securities held to maturity for which a portion of OTTI has been recognized (net of tax, $4 and $4 and accretion, $8 and $8 respectively 2018 and 2017) | 8 | 8 | |||
Dividends on common stock ($0.32, $0.32 and $0.32 per share respectively for 2018, 2017 and 2016) | (3,921) | (3,921) | |||
Issuance of common stock for warrants exercised (11,000 and 49,500 shares for 2018 and 2017 respectively) | 1 | 100 | 101 | ||
Issuance of common stock under Stock Incentive Plan (18,200 shares, 65,550 shares and 58,000 shares for 2018, 2017 and 2016 respectively) | 135 | 135 | |||
Stock-based compensation expense | 260 | 260 | |||
Balance at Dec. 31, 2016 | 123 | 104,884 | 22,126 | (789) | 126,344 |
Comprehensive income | |||||
Net income | 2,425 | 2,425 | |||
Change in unrealized loss on securities available for sale (net of tax benefit, $97, $192 2018 and 2017 respectively) | (372) | (372) | |||
Change in unrecognized loss on securities held to maturity for which a portion of OTTI has been recognized (net of tax, $4 and $4 and accretion, $8 and $8 respectively 2018 and 2017) | 9 | 9 | |||
Dividends on common stock ($0.32, $0.32 and $0.32 per share respectively for 2018, 2017 and 2016) | (5,798) | (5,798) | |||
Issuance of common stock for warrants exercised (11,000 and 49,500 shares for 2018 and 2017 respectively) | 449 | 449 | |||
Issuance of common stock under Stock Incentive Plan (18,200 shares, 65,550 shares and 58,000 shares for 2018, 2017 and 2016 respectively) | 555 | 555 | |||
Issuance of common stock in connection with Eastern Virginia Bankshares, Inc. merger (11,557,760 shares) | 116 | 198,793 | 198,909 | ||
Stock-based compensation expense | 251 | 251 | |||
Reclassification adjustment from accumulated other comprehensive income to retained earnings | 255 | ||||
Balance at Dec. 31, 2017 | 239 | 304,932 | 18,753 | (1,152) | 322,772 |
Comprehensive income | |||||
Net income | 33,691 | 33,691 | |||
Changes in other comprehensive loss on investment securities (net of tax, $(324), and accretion of $16) | (1,208) | (1,208) | |||
Dividends on common stock ($0.32, $0.32 and $0.32 per share respectively for 2018, 2017 and 2016) | (7,688) | (7,688) | |||
Issuance of common stock under Stock Incentive Plan (18,200 shares, 65,550 shares and 58,000 shares for 2018, 2017 and 2016 respectively) | 1 | 442 | 443 | ||
Stock-based compensation expense | 280 | 280 | |||
Reclassification adjustment from accumulated other comprehensive income to retained earnings | 229 | (229) | |||
Balance at Dec. 31, 2018 | $ 240 | $ 305,654 | $ 44,985 | $ (2,589) | $ 348,290 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Of Stockholders Equity [Abstract] | |||
Tax on change in unrealized loss on securities available for sale | $ (324) | $ 97 | |
Tax on change in unrecognized loss on securities held to maturity, portion of OTTI | $ 4 | 4 | |
Accretion on change in unrecognized loss on securities held to maturity, portion of OTTI | $ 16 | $ 8 | $ 8 |
Common stock dividends per share (in dollars per share) | $ 0.32 | $ 0.32 | $ 0.32 |
Issuance of common stock for warrants exercised (in shares) | 49,500 | 11,000 | |
Issuance of common shares under Stock Incentive Plan (in shares) | 58,000 | 65,550 | 18,200 |
Stock Issued During Period, Shares, Acquisitions | 11,557,760 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities: | |||
Net income | $ 33,691 | $ 2,425 | $ 10,312 |
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities: | |||
Depreciation | 3,273 | 2,176 | 798 |
Amortization of core deposit intangible | 1,445 | 845 | 219 |
Other amortization, net | 2,685 | 1,606 | (36) |
Accretion of loan discount | (4,534) | (3,802) | (1,874) |
Amortization of FDIC indemnification asset | 704 | 712 | 793 |
Provision for loan losses | 4,200 | 8,625 | 4,912 |
Earnings on bank-owned life insurance | (1,633) | (929) | (700) |
Equity loss on mortgage affiliate | 894 | 345 | (1,109) |
Stock based compensation expense | 280 | 251 | 260 |
Net gain on sales of investment securities | (255) | ||
Gain on bank-owned life insurance death benefit | (350) | ||
Net loss on other real estate owned | 360 | 520 | 174 |
Provision for deferred income taxes | 3,121 | 9,686 | 29 |
Net decrease in other assets | 213 | 6,069 | 2,924 |
Net increase (decrease) in other liabilities | (2,909) | (3,687) | 1,321 |
Net cash and cash equivalents provided by operating activities | 41,440 | 24,587 | 18,023 |
Investing activities: | |||
Proceeds from sales of investment securities | 4,767 | ||
Purchases of held to maturity investment securities | (9,950) | (46,055) | |
Purchases of available for sale investment securities | (3,247) | ||
Proceeds from paydowns, maturities and calls of available for sale investment securities | 14,360 | 7,987 | |
Proceeds from paydowns, maturities and calls of held to maturity investment securities | 5,955 | 11,037 | 57,622 |
Loan originations and payments, net | (113,845) | (104,009) | (108,760) |
Proceeds from sales of loans held for sale | 19,689 | ||
Purchase of bank-owned life insurance | (12,000) | ||
Proceeds from bank-owned life insurance death benefit | 2,278 | ||
Investment in mortgage affiliate, net | 46 | 939 | |
Net (increase) decrease in stock in Federal Reserve Bank and Federal Home Loan Bank | 7,253 | (12,112) | (1,000) |
Improvements on other real estate owned | 81 | ||
Payments received on FDIC indemnification asset | 46 | 18 | |
Proceeds from sale of other real estate owned | 2,059 | 1,110 | 1,790 |
Proceeds from sales of bank premise and equipment and assets held for sale | 2,136 | 40 | |
Purchases of bank premises and equipment | (1,973) | (1,425) | (143) |
Cash acquired in acquisition of Eastern Virginia Bankshares, Inc. | 24,015 | ||
Net cash and cash equivalents used in investing activities | (93,696) | (62,006) | (95,589) |
Financing activities: | |||
Net increase (decrease) in deposits | 231,671 | (196,801) | 77,307 |
Cash dividends paid on common stock | (7,688) | (5,798) | (3,921) |
Issuance of common stock for warrants exercised | 449 | 101 | |
Issuance of common stock under Stock Incentive Plan | 443 | 555 | 135 |
Issuance of subordinated notes, net of cost | 26,075 | ||
Net increase (decrease) in short-term borrowings | (169,022) | 191,010 | 21,000 |
Net cash and cash equivalents provided by financing activities | 55,404 | 15,490 | 94,622 |
Increase (decrease) in cash and cash equivalents | 3,148 | (21,929) | 17,056 |
Cash and cash equivalents at beginning of period | 25,463 | 47,392 | 30,336 |
Cash and cash equivalents at end of period | 28,611 | 25,463 | 47,392 |
Cash payments for: | |||
Interest | 26,129 | 14,571 | 8,289 |
Income taxes | $ 6,672 | 3,671 | 4,604 |
Supplemental schedule of noncash investing and financing activities | |||
Transfer from loans to other real estate owned | 43 | 144 | |
Transfer from long-term FHLB advances to short-term FHLB advances | 15,000 | ||
Transfer from securities sold under agreement to repurchase to deposits | $ 10,381 | ||
Fair value of tangible assets acquired | 1,356,637 | ||
Other intangible assets acquired | 100,127 | ||
Liabilities assumed | 1,257,845 | ||
Total merger consideration | $ 198,919 |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Dec. 31, 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. Prior to the merger, EVBS operated twenty-four retail branches, which served diverse markets primarily 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 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, involves 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) 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 of premiums and accretion of discounts associated with the Company’s acquisition accounting adjustments to assets acquired and liabilities assumed from EVBS had the following impact on the consolidated statements of income for the years ended December 31, 2018 and 2017: For the Years Ended December 31, (dollars in thousands) 2018 2017 Loans (1) $ 3,470 $ 2,800 Time deposits (2) 773 407 Junior and senior subordinated debt (3) 11 43 Core deposit intangible (4) (1,253) (651) Net impact to income before income taxes $ 3,001 $ 2,599 (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, all 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. 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 $1.9 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. The table below illustrates the pro forma revenue, net income, and earnings per share (basic and diluted) of the combined entities had the acquisition taken place on January 1, 2015. The combined pro forma revenue, net income, and earnings per share (basic and diluted) combines the historical results of EVBS with the Company’s consolidated statements of income for the periods listed below and, while certain adjustments were made for the estimated effect of certain fair value adjustments and other acquisition-related activity, they are not indicative of what would have occurred had the acquisition actually taken place on January 1, 2015. Acquisition-related expenses of $9.4 million and $429 thousand were included in the Company’s reported consolidated statements of income for the years ended December 31, 2017 and 2016, respectively, but were excluded from the pro forma information listed below. Southern National expects to achieve further operational cost savings and other efficiencies as a result of the acquisition which are not reflected in the pro forma amounts below: Pro Forma Pro Forma Twelve Months Ended Twelve Months Ended December 31, December 31, (dollars in thousands, except per share data) 2017 2016 Net interest income $ 91,010 $ 85,114 Net income 9,555 18,354 Earnings per share, basic $ 0.40 $ 0.77 Earnings per share, diluted $ 0.39 $ 0.76 Weighted average shares outstanding - Basic 23,923,410 23,923,410 Weighted average shares outstanding - Diluted 24,228,054 24,228,054 |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | 3. 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 Cost Gains Losses Value December 31, 2018 Residential government-sponsored mortgage-backed securities $ 27,945 $ — $ (643) $ 27,302 Obligations of states and political subdivisions 18,305 30 (280) 18,055 Corporate securities 2,008 1 (1) 2,008 Trust preferred securities 2,589 356 (304) 2,641 Residential government-sponsored collateralized mortgage obligations 44,095 3 (1,041) 43,057 Government-sponsored agency securities 3,247 — (122) 3,125 Agency commercial mortgage-backed securities 28,069 — (765) 27,304 SBA pool securities 20,183 10 (308) 19,885 Total $ 146,441 $ 400 $ (3,464) $ 143,377 Amortized Gross Unrealized Fair Cost Gains Losses Value December 31, 2017 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 Cost Gains Losses Value December 31, 2018 Residential government-sponsored mortgage-backed securities $ 9,699 $ 4 $ (230) $ 9,473 Obligations of states and political subdivisions 21,496 85 (147) 21,434 Trust preferred securities 2,610 150 (1) 2,759 Residential government-sponsored collateralized mortgage obligations 6,001 — (91) 5,910 Government-sponsored agency securities 52,656 — (3,123) 49,533 Total $ 92,462 $ 239 $ (3,592) $ 89,109 Amortized Gross Unrecognized Fair Cost Gains Losses Value December 31, 2017 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 OTTI on trust preferred securities. No investment securities were purchased or sold during 2018. During 2017, as part of our investment securities portfolio restructuring, $3.2 million of odd-lot residential government-sponsored mortgage-backed securities and $1.3 million of odd-lot residential government-sponsored collateralized mortgage obligations were sold. In addition, $5.7 million of callable agency investment securities were called during 2017. We recognized $257 thousand of gross gains on sales of investment securities and $2 thousand of gross losses on sales of investment securities during 2017. The fair value and carrying amount, if different, of debt investment securities as of December 31, 2018, by contractual maturity were as follows (in thousands). Investment securities not due at a single maturity date are shown separately. Available for Sale Held to Maturity Amortized Amortized Cost Fair Value Cost Fair Value Due in one to five years $ 3,373 $ 3,329 $ 5,359 $ 5,350 Due in five to ten years 6,594 6,531 19,071 18,291 Due after ten years 16,182 15,969 52,332 50,085 Residential government-sponsored mortgage-backed securities 27,945 27,302 9,699 9,473 Residential government-sponsored collateralized mortgage obligations 44,095 43,057 6,001 5,910 Agency commercial mortgage-backed securities 28,069 27,304 — — SBA pool securities 20,183 19,885 — — Total $ 146,441 $ 143,377 $ 92,462 $ 89,109 Investment securities with a carrying amount of approximately $165.7 million and $173.4 million at December 31, 2018 and 2017, respectively, were pledged to secure public deposits, certain other deposits, a line of credit for advances from the FHLB of Atlanta, and repurchase agreements. Southern National monitors the portfolio for indicators of OTTI. At December 31, 2018 and 2017, certain investment securities’ fair values were below cost. As outlined in the table below, there were 184 investment securities with fair values totaling approximately $209.2 million in the portfolio with the carrying value exceeding the estimated fair value that are considered temporarily impaired at December 31, 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 December 31, 2018. The following tables present information regarding investment securities in a continuous unrealized loss position as of December 31, 2018 and 2017 by duration of time in a loss position (in thousands): December 31, 2018 Less than 12 months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Available for Sale value Losses value Losses value Losses Residential government-sponsored mortgage-backed securities $ 393 $ (5) $ 26,910 $ (638) $ 27,303 $ (643) Obligations of states and political subdivisions 2,220 (78) 13,385 (202) 15,605 (280) Corporate securities 1,008 (1) — — 1,008 (1) Trust preferred securities — — 795 (304) 795 (304) Residential government-sponsored collateralized mortgage obligations — — 42,598 (1,041) 42,598 (1,041) Government-sponsored agency securities — — 3,125 (122) 3,125 (122) Agency commercial mortgage-backed securities — — 27,304 (765) 27,304 (765) SBA pool securities 6,009 (70) 10,546 (238) 16,555 (308) Total $ 9,630 $ (154) $ 124,663 $ (3,310) $ 134,293 $ (3,464) December 31, 2018 Less than 12 months 12 Months or More Total Fair Unrecognized Fair Unrecognized Fair Unrecognized Held to Maturity value Losses value Losses value Losses Residential government-sponsored mortgage-backed securities $ — $ — $ 8,935 $ (230) $ 8,935 $ (230) Obligations of states and political subdivisions 3,273 (10) 7,187 (137) 10,460 (147) Trust preferred securities — — 60 (1) 60 (1) Residential government-sponsored collateralized mortgage obligations — — 5,910 (91) 5,910 (91) Government-sponsored agency securities — — 49,532 (3,123) 49,532 (3,123) Total $ 3,273 $ (10) $ 71,624 $ (3,582) $ 74,897 $ (3,592) December 31, 2017 Less than 12 months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Available for Sale value Losses value Losses value 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) December 31, 2017 Less than 12 months 12 Months or More Total Fair Unrecognized Fair Unrecognized Fair Unrecognized Held to Maturity value Losses value Losses value 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 December 31, 2018, we owned pooled trust preferred investment securities as follows (in thousands): % of Previously Current Recognized Defaults and Cumulative Ratings When Estimated Deferrals to Other Tranche 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 $ 2,748 $ 2,550 $ 2,700 17 % $ 219 MMCF III B Senior Sub A3 A- Ba1 BBB 61 60 59 45 % 4 2,809 2,610 2,759 $ 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 1,099 795 28 % $ 400 ALESCO V C1 Mezzanine A2 A Caa1 C 2,150 1,490 1,846 14 % 660 3,650 2,589 2,641 $ 1,060 Total $ 6,459 $ 5,199 $ 5,400 (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 OTTI. 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 OTTI. 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. The amount of cumulative other than temporary impairment related to credit losses, previously recognized in earnings, was $1,060 at December 31, 2018, 2017 and 2016. There were no other than temporary impairment charges related to credit losses or sales of these securities during the years ended December 31, 2018, 2017 or 2016. Changes in accumulated other comprehensive (loss) by component for the years ended December 31, 2018, 2017 and 2016 are shown in the table below. All amounts are net of tax (in thousands). Unrealized Holding Losses on Held to Maturity For the year ended December 31, 2018 Available for Sale Securities Total Beginning balance $ (999) $ (153) $ (1,152) Amounts reclassified from accumulated other comprehensive income due to the adoption of ASU 2018-02 (199) (30) (229) Subtotal (1,198) (183) (1,381) Current period other comprehensive (loss) income (1,221) 13 (1,208) Ending balance $ (2,419) $ (170) $ (2,589) Unrealized Holding Losses on Held to Maturity For the year ended December 31, 2017 Available for Sale Securities Total Beginning balance $ (627) $ (162) $ (789) Other comprehensive income before reclassifications (372) (246) (618) Amounts reclassified from accumulated other comprehensive income — 255 255 Net current-period other comprehensive (loss) income (372) 9 (363) Ending balance $ (999) $ (153) $ (1,152) Unrealized Holding Losses on Held to Maturity For the year ended December 31, 2016 Available for Sale Securities Total Beginning balance $ (440) $ (170) $ (610) Other comprehensive (loss) income before reclassifications (187) 8 (179) Net current-period other comprehensive (loss) income (187) 8 (179) Ending balance $ (627) $ (162) $ (789) |
LOANS AND ALLOWANCE FOR LOAN LO
LOANS AND ALLOWANCE FOR LOAN LOSSES | 12 Months Ended |
Dec. 31, 2018 | |
Loans and Allowance for Loan Losses [Abstract] | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | 4. LOANS AND ALLOWANCE FOR LOAN LOSSES Loans, net of deferred fees, consist of the following at year end (in thousands): December 31, 2018 December 31, 2017 Loans secured by real estate: Commercial real estate - owner occupied $ 407,031 $ 401,847 Commercial real estate - non-owner occupied 540,698 440,700 Secured by farmland 20,966 23,038 Construction and land loans 146,654 197,972 Residential 1-4 family 565,083 483,006 Multi- family residential 82,516 70,892 Home equity lines of credit 128,225 152,829 Total real estate loans 1,891,173 1,770,284 Commercial loans 255,441 253,258 Consumer loans 32,347 39,374 Gross loans 2,178,961 2,062,916 Less deferred fees on loans (137) (588) Loans, net of deferred fees $ 2,178,824 $ 2,062,328 (1) Includes $18.3 million and $23.3 million of loans as of December 31, 2018 and 2017, respectively, acquired in the GAB transaction covered under an FDIC loss-share agreement. The agreement covering single family loans expires in December 2019. 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, Southern National acquired loans held for sale with a fair value of $19.7 million and loans held for investment with an unpaid principal balance of $1.05 billion and an estimated fair value of $1.03 billion, which created a fair value adjustment of $13.6 million at acquisition. The acquired loans held for sale were later sold in 2017. Accretion of $4.0 million and $2.8 million associated with the acquired loans held for investment was recognized in the twelve months ended December 31, 2018 and 2017, respectively. As part of the GAB acquisition, the Bank and the FDIC entered into loss sharing agreements on approximately $143.4 million (contractual basis) of GAB’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 $18.3 million and $23.3 million at December 31, 2018 and 2017, respectively. Accretable discount on the acquired performing loans in the EVBS, GAB, HarVest, and PGFSB acquisitions totaled $13.5 million and $17.5 million at December 31, 2018 and 2017, respectively. For the three acquisitions subsequent to the GAB acquisition noted above, management sold the majority of the PCI loans immediately after closing of the acquisition. Impaired loans for the portfolio were as follows (in thousands): Total Loans Unpaid Recorded Principal Related December 31, 2018 Investment (1) Balance Allowance With no related allowance recorded Commercial real estate - owner occupied $ 2,795 $ 4,777 $ — Commercial real estate - non-owner occupied (2) 171 333 — Construction and land development — 336 — Commercial loans 3,450 6,013 — Residential 1-4 family (3) 1,591 5,911 — Other consumer loans — — — Total $ 8,007 $ 17,370 $ — With an allowance recorded Commercial real estate - owner occupied $ — $ — $ — Commercial real estate - non-owner occupied (2) — — — Construction and land development — — — Commercial loans 2,626 3,276 612 Residential 1-4 family (3) 1,429 1,476 6 Other consumer loans — — — Total $ 4,055 $ 4,752 $ 618 Grand total $ 12,062 $ 22,122 $ 618 (1) Recorded investment is after cumulative prior charge offs of $6.8 million. These loans also have aggregate SBA guarantees of $ 3.4 million. (2) Includes loans secured by farmland and multi-family residential 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) Recorded investment is after cumulative prior charge offs of $6.8 million. These loans also have aggregate SBA guarantees of $5.0 million. (2) Includes loans secured by farmland and multi-family residential 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 years ended December 31, 2018, 2017 and 2016 (in thousands): Total Loans Average Interest Recorded Income Year Ended December 31, 2018 Investment Recognized With no related allowance recorded Commercial real estate - owner occupied $ 2,780 $ 179 Commercial real estate - non-owner occupied (1) 169 22 Construction and land development — — Commercial loans 3,319 92 Residential 1-4 family (2) 1,582 125 Other consumer loans — — Total $ 7,850 $ 418 With an allowance recorded Commercial real estate - owner occupied $ — $ — Commercial real estate - non-owner occupied (1) — — Construction and land development — — Commercial loans 2,530 200 Residential 1-4 family (2) 1,422 67 Other consumer loans — — Total $ 3,952 $ 267 Grand total $ 11,802 $ 685 (1) Includes loans secured by farmland and multi-family residential loans. (2) Includes home equity lines of credit. Total Loans Average Interest Recorded Income Year Ended December 31, 2017 Investment Recognized With no related allowance recorded Commercial real estate - owner occupied $ 875 $ 34 Commercial real estate - non-owner occupied (1) 890 56 Construction and land development 9,942 139 Commercial loans 12,655 485 Residential 1-4 family (2) 3,398 91 Other consumer loans — — Total $ 27,760 $ 805 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 $ 27,760 $ 805 (1) Includes loans secured by farmland and multi-family residential loans. (2) Includes home equity lines of credit. Total Loans Average Interest Recorded Income Year Ended December 31, 2016 Investment Recognized With no related allowance recorded Commercial real estate - owner occupied $ 6,454 $ 292 Commercial real estate - non-owner occupied (1) 103 3 Construction and land development — — Commercial loans 2,888 54 Residential 1-4 family (2) 988 32 Other consumer loans — — Total $ 10,433 $ 381 With an allowance recorded Commercial real estate - owner occupied $ 694 $ 31 Commercial real estate - non-owner occupied (1) — — Construction and land development — — Commercial loans 3,402 155 Residential 1-4 family (2) — — Other consumer loans — — Total $ 4,096 $ 186 Grand total $ 14,529 $ 567 (1) Includes loans secured by farmland and multi-family residential 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 December 31, 2018 and 2017 (in thousands): 30 - 59 60 - 89 Days Days 90 Days Total Nonaccrual Loans Not Total December 31, 2018 Past Due Past Due or More Past Due Loans Past Due Loans Total loans: Commercial real estate - owner occupied $ 577 $ 344 $ — $ 921 $ 1,284 $ 404,826 $ 407,031 Commercial real estate - non-owner occupied (1) 581 617 — 1,198 — 642,982 644,180 Construction and land development 851 — — 851 — 145,803 146,654 Commercial loans 319 168 — 487 3,391 251,563 255,441 Residential 1-4 family (2) 5,523 197 — 5,720 2,055 685,533 693,308 Other consumer loans 142 18 — 160 — 32,187 32,347 Total $ 7,993 $ 1,344 $ — $ 9,337 $ 6,730 $ 2,162,894 $ 2,178,961 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 residential loans. (2) Includes home equity lines of credit. Nonaccrual loans include SBA guaranteed amounts totaling $3.4 million and $4.7 million at December 31, 2018 and 2017, respectively. Activity in the allowance for loan and lease losses by class of loan for the years ended December 31, 2018, 2017 and 2016 is summarized below (in thousands): Commercial Commercial Real Estate Real Estate Construction Other Owner Non-owner and Land Commercial 1-4 Family Consumer Year Ended December 31, 2018 Occupied Occupied (1) Development Loans Residential (2) Loans Unallocated Total Allowance for loan losses: Beginning balance $ 690 $ 1,321 $ 692 $ 4,496 $ 1,586 $ 612 $ — $ 9,397 Provision for non-purchased loans 497 348 129 1,941 237 (116) 564 3,600 Provision for purchase credit impaired loans — — — 600 — — — 600 Total provision 497 348 129 2,541 237 (116) 564 4,200 Charge offs (400) — — (1,566) (842) (290) — (3,098) Recoveries 15 — — 1,626 125 18 — 1,784 Ending balance $ 802 $ 1,669 $ 821 $ 7,097 $ 1,106 $ 224 $ 564 $ 12,283 Year Ended December 31, 2017 Allowance for loan losses: Beginning balance $ 905 $ 1,484 $ 752 $ 3,366 $ 1,279 $ 78 $ 746 $ 8,610 Provision (347) (362) (61) 8,842 659 640 (746) 8,625 Charge offs — (100) — (8,250) (369) (110) — (8,829) Recoveries 132 299 1 538 17 4 — 991 Ending balance $ 690 $ 1,321 $ 692 $ 4,496 $ 1,586 $ 612 $ — $ 9,397 Year ended December 31, 2016 Allowance for loan losses: Beginning balance $ 1,185 $ 1,222 $ 865 $ 3,041 $ 1,408 $ 48 $ 652 $ 8,421 Provision 511 262 215 3,599 (117) 348 94 4,912 Charge offs (799) — (449) (3,370) (22) (322) — (4,962) Recoveries 8 — 121 96 10 4 — 239 Ending balance $ 905 $ 1,484 $ 752 $ 3,366 $ 1,279 $ 78 $ 746 $ 8,610 (1) Includes loans secured by farmland and multi-family residential loans. (2) Includes home equity lines of credit. The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2018 and 2017 (in thousands): Commercial Commercial Real Estate Real Estate Construction Other Owner Non-owner and Land Commercial 1-4 Family Consumer December 31, 2018 Occupied Occupied (1) Development Loans Residential (2) Loans Unallocated Total Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ — $ — $ 600 $ — $ — $ — $ 600 Collectively evaluated for impairment 802 1,669 821 6,497 1,106 224 564 11,683 Total ending allowance $ 802 $ 1,669 $ 821 $ 7,097 $ 1,106 $ 224 $ 564 $ 12,283 Loans: Individually evaluated for impairment $ 2,795 $ 171 $ — $ 3,450 $ 1,591 $ — $ — $ 8,007 Collectively evaluated for impairment 404,236 644,009 146,654 251,991 691,717 32,347 — 2,170,954 Total ending loan balances $ 407,031 $ 644,180 $ 146,654 $ 255,441 $ 693,308 $ 32,347 $ — $ 2,178,961 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 residential 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. As of December 31, 2018, we had two loans in TDRs. One loan was modified in TDRs during the year ending December 31, 2018. One TDR which had been modified in 2013 defaulted in 2015. This loan, in the amount of $662 thousand, was current as of December 31, 2018. Credit Quality Indicators 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. Southern National had no loans classified Doubtful at December 31, 2018 or 2017. 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. As of December 31, 2018 and 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 December 31, 2018 Mention Substandard (3) Pass Total Commercial real estate - owner occupied $ 6,611 $ 2,810 $ 397,610 $ 407,031 Commercial real estate - non-owner occupied (1) 4,382 189 639,609 644,180 Construction and land development — — 146,654 146,654 Commercial loans 2,373 2,689 250,379 255,441 Residential 1-4 family (2) 395 1,982 690,931 693,308 Other consumer loans 142 — 32,205 32,347 Total $ 13,903 $ 7,670 $ 2,157,388 $ 2,178,961 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 $3.4 million and $5.0 million as of December 31, 2018 and 2017, respectively. The amount of foreclosed residential real estate property held at December 31, 2018 and 2017 was $1.2 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 $1.5 million and $939 thousand at December 31, 2018 and 2017, respectively. Purchased Loans The following table presents the carrying amount of purchased impaired and non-impaired loans from the acquisitions as of December 31, 2018 and 2017 (in thousands): December 31, 2018 December 31, 2017 Purchased Purchased Purchased Purchased Impaired Non-impaired Impaired Non-impaired Loans Loans Total Loans Loans Total Commercial real estate (1) $ 4,387 $ 379,889 $ 384,276 $ 7,036 $ 431,586 $ 438,622 Construction and land development 358 47,466 47,824 396 89,121 89,517 Commercial loans 3,050 71,146 74,196 3,787 114,700 118,487 Residential 1-4 family (2) 3,654 275,527 279,181 2,395 342,688 345,083 Other consumer loans — 21,731 21,731 — 33,706 33,706 Total $ 11,449 $ 795,759 $ 807,208 $ 13,614 $ 1,011,801 $ 1,025,415 (1) Includes owner occupied and non-owner occupied as well as loans secured by farmland and multi-family residential loans. (2) Includes home equity lines of credit. The FDIC indemnification on the GAB residential mortgages and home equity lines of credit expires in December 2019. Changes in the carrying amount and accretable yield for purchased impaired and non-impaired loans from the acquisitions were as follows for the years ended December 31, 2018 and 2017 (in thousands): December 31, 2018 December 31, 2017 Purchased Impaired Purchased Non-impaired Purchased Impaired Purchased Non-impaired Carrying Carrying Carrying Carrying Accretable Amount Accretable Amount Accretable Amount Accretable Amount Yield of Loans Discount of Loans Yield of Loans Discount of Loans Balance at beginning of the period $ 315 $ 13,614 $ 17,460 $ 1,011,801 $ — $ 3,417 $ 6,519 $ 95,376 Additions — — — — 398 11,329 14,783 1,020,653 Accretion (141) 141 (4,196) 4,196 (83) 83 (4,072) 4,078 Reclassifications from nonaccretable balance — — 210 — — — 230 — Adjustment-transfer to OREO — — — — — — — (43) Payments received — (2,306) — (220,238) — (1,215) — (108,263) Balance at end of the period $ 174 $ 11,449 $ 13,474 $ 795,759 $ 315 $ 13,614 $ 17,460 $ 1,011,801 |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | 5. FAIR VALUE ASC 820 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: Assets Measured on a Recurring Basis: 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 and mortgage products. 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, a majority of Southern National’s available for sale debt investment securities are considered to be Level 2 investment securities, except for a few corporate securities that are classified as Level 3 investment securities. 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) December 31, 2018 (Level 1) (Level 2) (Level 3) Available for sale securities Residential government-sponsored mortgage-backed securities $ 27,302 $ — $ 27,302 $ — Obligations of states and political subdivisions 18,055 — 18,055 — Corporate securities 2,008 — 1,008 1,000 Trust preferred securities 2,641 — 2,641 — Residential government-sponsored collateralized mortgage obligations 43,057 — 43,057 — Government-sponsored agency securities 3,125 — 3,125 — Agency commercial mortgage-backed securities 27,304 — 27,304 — SBA pool securities 19,885 — 19,885 — Total $ 143,377 $ — $ 142,377 $ 1,000 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) 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 December 31, 2018 and 2017. Fair value is classified as Level 3 in the fair value hierarchy. Loans identified as impaired totaled $12.1 million (including SBA guarantees of $ 3.4 million) with a $618 thousand allocation made to the allowance for loan losses at December 31, 2018 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 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 December 31, 2018 and 2017. Fair value is classified as Level 3 in the fair value hierarchy. OREO is further evaluated quarterly for any additional impairment. At December 31, 2018 and 2017, the total amount of OREO was $5.1 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) December 31, 2018 (Level 1) (Level 2) (Level 3) Impaired loans: Commercial real estate - owner occupied $ 2,795 $ — $ — $ 2,795 Commercial real estate - non-owner occupied (1) 171 — — 171 Commercial loans 6,076 — — 6,076 Residential 1-4 family (2) 3,020 — — 3,020 Assets held for sale 600 — — 600 Other real estate owned: Commercial real estate - owner occupied (1) 908 — — 908 Construction and land development 2,938 — — 2,938 Residential 1-4 family (2) 1,231 — — 1,231 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): December 31, 2018 December 31, 2017 Fair Value Carrying Fair Carrying Fair Hierarchy Level Amount Value Amount Value Financial assets: Cash and cash equivalents Level 1 $ 28,611 $ 28,611 $ 25,463 $ 25,463 Securities available for sale Level 2 143,377 143,377 160,673 160,673 Securities held to maturity Level 2 92,462 89,109 98,912 97,597 Stock in Federal Reserve Bank and Federal Home Loan Bank Level 2 19,522 19,522 26,775 26,775 Equity investment in mortgage affiliate Level 3 3,829 3,829 4,723 4,723 Preferred investment in mortgage affiliate Level 3 3,305 3,305 3,305 3,305 Net loans Level 3 2,166,541 2,134,021 2,052,931 2,058,779 Accrued interest receivable Level 2 & Level 3 8,745 8,745 8,073 8,073 Financial liabilities: Demand deposits Level 1 $ 665,640 665,640 $ 649,067 $ 649,067 Money market and savings accounts Level 1 506,519 506,519 517,031 517,031 Certificates of deposit Level 3 925,441 919,175 699,058 694,368 Securities sold under agreements to repurchase Level 1 18,721 18,721 15,468 15,468 FHLB short term advances Level 1 163,340 163,340 335,615 335,615 Junior subordinated debt Level 2 9,584 12,065 9,534 12,043 Senior subordinated notes Level 2 47,089 57,173 47,128 58,163 Accrued interest payable Level 1 & Level 3 3,985 3,985 2,273 2,273 Carrying amount is the estimated fair value for cash and cash equivalents (including federal funds sold), equity investment in mortgage affiliate, preferred investment in mortgage affiliate, accrued interest receivable and payable, demand deposits, savings accounts, money market accounts 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. Carrying amount of Federal Reserve Bank and Federal Home Loan Bank stock is a reasonable estimate of fair value as these securities are not readily marketable and are based on the ultimate recoverability of the par value. The fair value of off-balance-sheet items is not considered material. At December 31, 2018, fair value of net loans, certificates of deposits, junior subordinated debt, and senior subordinated notes are 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 was based on discounted cash flows using current market rates applied to the estimated life of the asset. |
BANK PREMISES AND EQUIPMENT
BANK PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
BANK PREMISES AND EQUIPMENT | 6. BANK PREMISES AND EQUIPMENT Bank premises and equipment as of December 31, 2018 and 2017 were as follows (in thousands): 2018 2017 Land $ 8,139 $ 8,133 Land improvements 2,027 2,027 Building and improvements 32,960 33,928 Leasehold improvements 3,221 3,217 Furniture and equipment 20,338 20,022 Construction in progress 133 41 66,818 67,368 Less accumulated depreciation and amortization 34,466 31,580 Bank premises and equipment, net $ 32,352 $ 35,788 Future minimum rental payments required under non-cancelable operating leases for bank premises that have initial or remaining terms in excess of one year as of December 31, 2018 are as follows (in thousands): 2019 $ 2,628 2020 2,093 2021 1,337 2022 1,269 2023 1,111 Thereafter 2,201 Total $ 10,639 Some leases contain options to extend for periods of up to 5 years. Rental expense for 2018, 2017 and 2016 was $2.5 million, $2.2 million and $2.0 million, respectively. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | 7. GOODWILL AND INTANGIBLE ASSETS Goodwill Southern National has recorded $1 01.9 million and $100.6 million of goodwill at December 31, 2018 and 2017, respectively. Goodwill is primarily related to the acquisition of EVBS, which increased goodwill by $90.1 million in 2017. During 2018, as part of recognition of all measurement period adjustments, we recognized additional goodwill of $1.3 million related to the 2017 acquisition of EVBS. Goodwill is evaluated for impairment on an annual basis or more frequently if events or circumstances warrant. Our annual assessment timing is during the third calendar quarter. For the 2018 assessment, we performed a qualitative assessment to determine if it was more likely than not that the fair value of our single reporting unit is less than its carrying amount. We concluded that the fair value of our single reporting unit exceeded its carrying amount and that it was not necessary to perform the two-step test pursuant to ASC 350‑20. Our qualitative assessment considered many factors including, but not limited to, our actual and projected operating performance and profitability, as well as consideration of recent bank merger and acquisition transaction metrics. No impairment was indicated in 2018, 2017 or 2016. Intangible Assets Intangible assets were as follows at year end (in thousands): December 31, 2018 Gross Carrying Accumulated Net Carrying Value Amortization Value Amortizable core deposit intangibles $ 17,503 $ (8,894) $ 8,609 December 31, 2017 Gross Carrying Accumulated Net Carrying Value Amortization Value Amortizable core deposit intangibles $ 17,503 $ (7,449) $ 10,054 Estimated amortization expense of intangibles for the years ended December 31 were as follows (in thousands): 2019 $ 1,428 2020 1,375 2021 1,375 2022 1,334 2023 1,278 Thereafter 1,934 Total $ 8,724 |
FDIC INDEMNIFICATION ASSET
FDIC INDEMNIFICATION ASSET | 12 Months Ended |
Dec. 31, 2018 | |
Fdic Indemnification Asset [Abstract] | |
FDIC INDEMNIFICATION ASSET | 8. FDIC INDEMNIFICATION ASSET The indemnification asset represents our estimate of future expected recoveries under the FDIC loss sharing arrangement for covered loans acquired in the GAB acquisition in 2009. The estimated fair value of the indemnification asset was $8.8 million at December 4, 2009, the date of acquisition. The following table presents changes in the indemnification asset for the periods indicated (in thousands): 2018 2017 Balance as of January 1 $ 1,353 $ 2,111 Payments from FDIC — (46) Amortization (704) (712) Balance as of December 31, $ 649 $ 1,353 During 2018, and based on the actual historical losses on the loan pools over the previous 24‑month period, expected losses on the acquired GAB loans (the covered loans) were lower than previously forecasted which results in a lower expected recovery from the FDIC. There were two agreements with the FDIC, one for single family assets 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 current overstatement is due to improvements in the loss estimates in the single family covered loans. |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2018 | |
Deposits [Abstract] | |
DEPOSITS | 9. DEPOSITS The aggregate amount of time deposits in denominations of $250 thousand or more at December 31, 2018 and 2017 was $190.6 million and $171.0 million, respectively. At December 31, 2018, the scheduled maturities of time deposits are as follows (in thousands): 2019 $ 690,563 2020 157,071 2021 44,887 2022 22,615 2023 10,305 Total $ 925,441 The following table sets forth the maturities of certificates of deposit of $250 thousand and over as of December 31, 2018 (in thousands): Within 3 to 6 6 to 12 Over 12 3 Months Months Months Months Total $ 14,374 $ 28,379 $ 91,411 $ 56,452 $ 190,616 As of December 31, 2018, we had brokered certificates of deposit in the amount of $254.6 million and brokered money market deposits of $16.9 million. At December 31, 2017, we had brokered certificates of deposit in the amount of $109.8 million, and we had brokered money market deposits of $17.0 million. For our deposit agreements with certain customers, we hold the collateral in a segregated custodial account. We are required to maintain adequate collateral levels. In the event the collateral fair value falls below stipulated levels, we will pledge additional securities. We closely monitor collateral levels to ensure adequate levels are maintained, while mitigating the potential risk of over-collateralization. |
SECURITIES SOLD UNDER AGREEMENT
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS | 12 Months Ended |
Dec. 31, 2018 | |
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Abstract] | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS | 10. SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS Other short-term borrowings can consist of FHLB of Atlanta 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. During 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 December 31, 2018 and 2017 was $18.7 million and $15.5 million, respectively. At December 31, 2018 and 2017, we have pledged callable agency securities, residential government-sponsored mortgage-backed securities and collateralized mortgage obligations with a carrying value of $28.5 million and $24.2 million, respectively, to customers who require collateral for overnight repurchase agreements and other deposits. Other short-term borrowings consist of the following (in thousands): December 31, 2018 2017 2016 FHLB overnight advances $ 5,500 $ 56,860 $ 50,000 Other short-term FHLB advances maturing 6/27/2019 40,000 — — Other short-term FHLB advances maturing 6/18/2019 27,200 — — Other short-term FHLB advances maturing 6/12/2019 10,000 — — Other short-term FHLB advances maturing 6/11/2019 80,640 — — Other short-term FHLB advances maturing 6/27/2018 — 10,000 — Other short-term FHLB advances maturing 6/20/2018 — 27,200 — Other short-term FHLB advances maturing 6/14/2018 — 10,000 — Other short-term FHLB advances maturing 6/13/2018 — 80,640 — Other short-term FHLB advances maturing 6/12/2018 — 10,000 — Other short-term FHLB advances maturing 3/28/2018 — 30,000 — Other short-term FHLB advances maturing 3/14/2018 — 80,640 — Other short-term FHLB advances maturing 3/13/2018 — 30,275 — Other short-term FHLB advances maturing 3/27/2017 — — 10,000 Other short-term FHLB advances maturing 5/4/2017 — — 10,000 Other short-term FHLB advances maturing 6/5/2017 — — 10,000 Other short-term FHLB advances maturing 6/19/2017 — — 5,000 Other short-term FHLB advances maturing 12/15/2017 — — 10,000 Securities sold under agreements to repurchase 18,721 15,468 — Total $ 182,061 $ 351,083 $ 95,000 Weighted average interest rate at year end 2.68 % 1.50 % 0.86 % For the periods ended December 31, 2018, 2017 and 2016: Average outstanding balance $ 324,155 $ 177,983 $ 66,864 Average interest rate during the year 1.91 % 1.24 % 0.74 % Maximum month-end outstanding balance $ 411,511 $ 351,083 $ 95,000 Each FHLB advance is payable at its maturity date, with a prepayment penalty for fixed rate advances paid off earlier than maturity. Residential 1‑4 family mortgage loans in the amount of approximately $347.4 million and $323.3 million were pledged as collateral for FHLB advances as of December 31, 2018 and 2017, respectively. HELOCs in the amount of approximately $54.7 million and $82.0 million were pledged as collateral for FHLB advances at December 31, 2018 and 2017, respectively. Commercial mortgage loans in the amount of approximately $107.7 million and $124.4 million were pledged as collateral for FHLB advances as of December 31, 2018 and 2017, respectively. Investment securities in the amount of $25.3 million and $26.0 million were pledged as collateral for FHLB advances at December 31, 2018 and 2017, respectively. At December 31, 2018, Sonabank had available collateral to borrow an additional $513.0 million from the FHLB. |
JUNIOR SUBORDINATED DEBT AND SE
JUNIOR SUBORDINATED DEBT AND SENIOR SUBORDINATED NOTES | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
JUNIOR SUBORDINATED DEBT AND SENIOR SUBORDINATED NOTES | 11. JUNIOR SUBORDINATED DEBT AND SENIOR SUBORDINATED NOTES In connection with our merger with EVBS, the Company assumed $10.3 million (fair value adjustment of $801 thousand) 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 3-month LIBOR plus 2.95%. As of December 31, 2018 and 2017, the interest rate was 5.73% 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 on 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 December 31, 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 December 31, 2018, all of the SNBV Senior Subordinated Notes qualified as Tier 2 capital. At December 31, 2018, the remaining unamortized debt issuance costs related to the SNBV Senior Subordinated Notes totaled $760 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 (fair value adjustment of $1.9 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 Senior Subordinated Notes as early as May 1, 2020, and any partial redemption would be made pro rata among all of the holders. At December 31, 2018 all of the EVBS Senior Subordinated Notes qualified as Tier 2 capital. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | 12. INCOME TAXES Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting and income tax purposes. Net deferred tax assets at December 31, 2018 and 2017 consist primarily of the following: (in thousands): 2018 2017 Deferred tax assets: Allowance for loan losses $ 2,686 $ 2,100 Organization costs 42 78 Unearned loan fees and other 1,058 987 Other real estate owned write-downs 783 794 Other than temporary impairment charge 232 235 Net unrealized loss on investment securities available for sale 694 367 Purchase accounting 1,909 3,411 Federal and state net operating loss carryforward 762 4,845 Federal AMT credit carryforward 1,137 1,137 Federal low income housing credit carryforward 2,887 2,386 Deferred compensation 1,390 1,114 Other 687 712 Total deferred tax assets 14,267 18,166 Deferred tax liabilities: FDIC indemnification asset 140 300 Depreciation 23 963 Total deferred tax liabilities 163 1,263 Net deferred tax assets $ 14,104 $ 16,903 No valuation allowance was deemed necessary on deferred tax assets in 2018 or 2017. Management believes that the realization of the deferred tax assets is more likely than not based on the expectation that Southern National will generate the necessary taxable income in future periods. We have no unrecognized tax benefits and do not anticipate any increase in unrecognized tax benefits during the next twelve months. Should the accrual of any interest or penalties relative to unrecognized tax benefits be necessary, it is our policy to record such accruals in our income tax accounts; no such accruals existed as of December 31, 2018, 2017 or 2016. Southern National and its subsidiaries file a consolidated U.S. federal income tax return, and Southern National files a Virginia state income tax return. Sonabank files a Maryland state income tax return. These returns are subject to examination by taxing authorities for all years after 2014. The provision for income taxes consists of the following for the years ended December 31, 2018, 2017 and 2016 (in thousands): 2018 2017 2016 Current tax expense Federal $ 6,244 $ 3,145 $ 4,781 State 249 316 285 Total current tax expense 6,493 3,461 5,066 Deferred tax expense (benefit) Federal 2,692 10,234 28 State 429 (548) 1 Total deferred tax expense 3,121 9,686 29 Total income tax expense $ 9,614 $ 13,147 $ 5,095 The income tax expense differed from the amount of income tax determined by applying the U.S. Federal income tax rate of 21% to pretax income for the year ended December 31, 2018 and 34% to pretax income for the years ended December 31, 2017 and 2016 due to the following (in thousands): 2018 2017 2016 Computed expected tax expense at statutory rate $ 9,094 $ 5,294 $ 5,238 Increase (decrease) in tax expense resulting from: Deferred tax impairment 1,130 — — Low income housing tax credits (502) — — Income from bank-owned life insurance (416) (316) (238) Other, net 308 234 95 Transaction costs — 724 — Tax adjustment related to reduction in U.S. federal statutory income tax rate — 7,211 — Income tax expense $ 9,614 $ 13,147 $ 5,095 During 2018, the Company determined that certain net operating loss carryforwards were impaired due to Section 382 limitations. Income tax expense for 2017 was impacted by the adjustment of our deferred tax assets and liabilities related to the reduction in the U.S. federal statutory income tax rate to 21% under the Tax Cuts and Jobs Act, which was enacted on December 22, 2017. As a result of the Tax Cuts and Jobs Act, we recognized additional income tax expense totaling $7.2 million in 2017, as reported in the rate change line item in the table above. The Tax Cuts and Jobs Act was enacted on December 22, 2017, which made broad changes to the U.S. tax code, including a reduction in the federal corporate tax rate from 35% to 21%. The Securities and Exchange Commission (SEC) issued Staff Accounting Bulletin 118 to address uncertainty in applying ASC Topic 740 in the reporting period in which the Tax Act was enacted. Tax expense increased in the fourth quarter of 2017 by an additional $7.2 million primarily attributable to the revaluation of our deferred tax assets and liabilities to reflect the Tax Act changes. Accounting for the Tax Act was completed during the fourth quarter of 2018 with no material changes. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2018 | |
Compensation and Retirement Disclosure [Abstract] | |
EMPLOYEE BENEFITS | 13. EMPLOYEE BENEFITS Southern National has a 401(k) plan that allows employees to make pre-tax contributions for retirement. The 401(k) plan provides for discretionary matching contributions by Southern National. Expense for 2018, 2017 and 2016 was $784 thousand, $433 thousand and $132 thousand, respectively. A deferred compensation plan that covers two executive officers was established in 2007. Under the plan, the Bank pays each participant, or their beneficiary, the amount of compensation deferred plus accrued interest over 10 years, beginning with the individual’s retirement. A liability is accrued for the obligation under these plans. In connection with our merger with EVBS, Southern National assumed the EVBS Supplemental Executive Retirement Plan, which had two participants. The normal retirement benefits for both participants became fully vested as a result of the merger. The completion of the merger, however, did not accelerate the time of payment under the EVBS Supplemental Executive Retirement Plan. For one participant, benefits are to be paid in equal monthly installments over a 15‑year period. There is no pre-retirement benefit, but a beneficiary can be named to receive the remaining payments for the 15‑year period after benefits have commenced. For the other participant, benefits are to be paid in equal monthly installments over a 200‑month period. There is no pre-retirement benefit, but a beneficiary can be named to receive the remaining payments for the 200‑month period after benefits have commenced. The expense incurred for the deferred compensation plans in 2018, 2017 and 2016 was $1.2 million, $415 thousand and $495 thousand, respectively. The deferred compensation plan liability was $6.1 million and $5.0 million as of December 31, 2018 and 2017, respectively. |
STOCK- BASED COMPENSATION
STOCK- BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |
STOCK-BASED COMPENSATION | 14. 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 replaced 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. Southern National granted no regular options during 2018 and 2017, but did issue 22,559 options under the 2017 Plan in connection with the merger with EVBS which options were previously outstanding under the EVBS 2003 Stock Incentive Plan. Immediately prior to the effective time of the merger, each option to purchase shares of EVBS common stock granted under an EVBS stock plan vested and was converted into and became an option to purchase shares of common stock of SNBV (each, an “Assumed Option”), which was adjusted (i) by multiplying the number of shares of common stock that could be purchased under the Assumed Option by the 0.6313 exchange ratio and rounding down to the nearest share and (ii) by dividing the per share exercise price of the option by the 0.6313 exchange ratio and rounding up to the nearest cent. SNBV assumed each Assumed Option in accordance with the terms of the EVBS stock plan and award agreement by which it is evidenced. Southern National granted 136,000 options during 2016. A summary of the activity in the stock option plan for 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 (14,617) 15.24 Exercised (58,000) 7.62 Options outstanding, end of period 642,350 $ 9.77 5.0 $ 2,219 Exercisable at end of period 498,900 $ 8.96 4.3 $ 1,988 Stock-based compensation expense associated with stock options was $122 thousand, $237 thousand and $260 thousand for the years ended December 31, 2018, 2017 and 2016, respectively. As of December 31, 2018, unrecognized compensation expense associated with stock options was $92 thousand, which is expected to be recognized over a weighted average period of 1.6 years. In 2018, 62,500 shares of restricted stock were granted at a weighted average exercise price of $15.62 to certain officers of Southern National under the 2017 Plan and are subject to vesting in five years. These shares are included in the total shares outstanding at December 31, 2018. In 2018, 4,700 shares of restricted stock granted to certain officers of Southern National under the 2017 Plan were forfeited. In the third quarter of 2017, 2,800 shares of restricted stock with a price of $15.78 were granted to certain officers of Southern National under the 2017 Plan and are subject to time vesting in two equal annual installments on July 31, 2018 and 2019, respectively. Restricted stock compensation expense totaled $158 thousand for the year ended December 31, 2018. As of December 31, 2018, unrecognized compensation expense associated with restricted stock was $793 thousand, which is expected to be recognized over a weighted average period of 4.3 years. |
FINANCIAL INSTRUMENTS WITH OFF-
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments With Off Balance Sheet Risk [Abstract] | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | 15. 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 $19.2 million and $15.2 million as of December 31, 2018 and 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 December 31, 2018 and 2017, we had unfunded lines of credit and undisbursed construction loan funds totaling $339.2 million and $361.7 million, respectively. Virtually all of our unfunded lines of credit and undisbursed construction loan funds are variable rate. Premerger, 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 December 31, 2018. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 16. EARNINGS PER SHARE The following is a reconciliation of the denominators of the basic and diluted EPS computations for 2018, 2017 and 2016 (amounts in thousands, except per share data): Weighted Average Income Shares Per Share (Numerator) (Denominator) Amount For the year ended December 31, 2018 Basic EPS $ 33,691 24,012 $ 1.40 Effect of dilutive stock options — 261 (0.01) Diluted EPS $ 33,691 24,273 $ 1.39 For the year ended December 31, 2017 Basic EPS $ 2,425 18,391 $ 0.13 Effect of dilutive stock options and warrants — 281 — Diluted EPS $ 2,425 18,672 $ 0.13 For the year ended December 31, 2016 Basic EPS $ 10,312 12,252 $ 0.84 Effect of dilutive stock options and warrants — 175 (0.01) Diluted EPS $ 10,312 12,427 $ 0.83 The Company did not have any anti-dilutive options during 2018 and 2016. There were 8,517 anti-dilutive options during 2017 and all unexercised warrants expired in 2017. |
REGULATORY MATTERS
REGULATORY MATTERS | 12 Months Ended |
Dec. 31, 2018 | |
Regulatory Matters [Abstract] | |
REGULATORY MATTERS | 17. REGULATORY MATTERS Southern National and its subsidiary bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory - and possibly additional discretionary - actions by regulators that, if undertaken, could have a direct material effect on our financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action (“PCA”), we must meet specific capital guidelines that involve quantitative measures of our assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. At December 31, 2018 and 2017, the most recent regulatory notifications categorized the Bank as well capitalized under regulatory framework for PCA. Quantitative measures established by regulation to ensure capital adequacy require Southern National to maintain minimum amounts and ratios of Total and Tier I capital (as defined in the regulations) to average assets (as defined). Management believes, as of December 31, 2018, that Southern National meets all capital adequacy requirements to which it is subject. The capital amounts and ratios for Southern National and Sonabank at year end are presented in the following table (in thousands): Required For Capital To Be Categorized as Actual Adequacy Purposes (1) Well Capitalized (2) Amount Ratio Amount Ratio Amount Ratio December 31, 2018 Southern National Common equity tier 1 capital ratio $ 239,554 11.57 % $ 93,135 4.50 % n/a n/a Tier 1 risk-based capital ratio 249,554 12.06 % 124,180 6.00 % n/a n/a Total risk-based capital ratio 308,838 14.92 % 165,573 8.00 % n/a n/a Leverage ratio 249,554 9.57 % 104,338 4.00 % n/a n/a Sonabank Common equity tier 1 capital ratio $ 288,018 13.64 % $ 95,020 4.50 % $ 137,251 6.50 % Tier 1 risk-based capital ratio 288,018 13.64 % 126,693 6.00 % 168,924 8.00 % Total risk-based capital ratio 300,301 14.22 % 168,924 8.00 % 211,156 10.00 % Leverage ratio 288,018 11.03 % 104,420 4.00 % 105,578 5.00 % December 31, 2017 Southern National Common equity tier 1 capital ratio $ 211,399 10.53 % $ 90,300 4.50 % n/a n/a Tier 1 risk-based capital ratio 220,430 10.98 % 120,399 6.00 % n/a n/a Total risk-based capital ratio 276,827 13.80 % 160,533 8.00 % n/a n/a Leverage ratio 220,430 8.82 % 100,022 4.00 % n/a n/a Sonabank Common equity tier 1 capital ratio $ 256,615 12.79 % $ 90,282 4.50 % $ 130,407 6.50 % Tier 1 risk-based capital ratio 256,615 12.79 % 120,375 6.00 % 160,500 8.00 % Total risk-based capital ratio 266,012 13.26 % 160,500 8.00 % 200,626 10.00 % Leverage ratio 256,615 10.26 % 100,040 4.00 % 125,051 5.00 % (1) When fully phased-in on January 1, 2019, the Basel III capital rules include a capital conservation buffer of 2.5% that is added on top of each of the minimum risk-based capital ratios noted above. Implementation began on January 1, 2016 at the 0.625% level and will increase each subsequent January 1, until it reaches 2.5% on January 1, 2019. (2) PCA provisions are not applicable at the bank holding company level. Southern National’s principal source of funds for dividend payments is dividends received from the Bank. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. Under these regulations, the amount of dividends that may be paid in any calendar year is limited to the current year’s net profits, combined with the retained net profits of the preceding two years, subject to the capital requirements described above. |
PARENT COMPANY FINANCIAL INFORM
PARENT COMPANY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
PARENT COMPANY FINANCIAL INFORMATION | 18. PARENT COMPANY FINANCIAL INFORMATION Condensed financial information of Southern National Bancorp of Virginia, Inc. follows (in thousands): CONDENSED BALANCE SHEETS DECEMBER 31, 2018 2017 ASSETS Cash $ 1,393 $ 4,535 Investment in subsidiaries 397,063 369,266 Other assets 7,174 6,405 Total assets $ 405,630 $ 380,206 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Junior subordinated debt $ 9,584 $ 9,534 Senior subordinated notes 47,089 47,128 Other liabilities 667 772 Total liabilities 57,340 57,434 Stockholders' equity: Common stock 240 239 Additional paid in capital 305,654 304,932 Retained earnings 44,985 18,753 Accumulated other comprehensive loss (2,589) (1,152) Total stockholders' equity 348,290 322,772 Total liabilities and stockholders' equity $ 405,630 $ 380,206 CONDENSED STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 2018 2017 2016 Income: Cash dividends received from subsidiaries $ 8,000 $ 4,900 $ 3,600 Interest on deposit with subsidiary — 3 — Total income 8,000 4,903 3,600 Expenses: Interest on junior subordinated debt 575 253 — Interest on senior subordinated notes 2,847 2,194 — Merger expenses — 2,812 — Other operating expenses 765 478 153 Total expenses 4,187 5,737 153 Income (loss) before income tax benefit and equity in undistributed net income of subsidiary 3,813 (834) 3,447 Income tax benefit (872) (1,196) (52) Equity in undistributed net income of subsidiary 29,006 2,063 6,813 Net income $ 33,691 $ 2,425 $ 10,312 CONDENSED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2018 2017 2016 Operating activities: Net income $ 33,691 $ 2,425 $ 10,312 Adjustments to reconcile net income to net cash and cash equivalents (used in) provided by operating activities: Equity in undistributed net income of subsidiary (37,006) (6,963) (10,413) Other, net (582) 4,046 219 Net cash and cash equivalents (used in) provided by operating activities (3,897) (492) 118 Investing activities: Increase in investment in subsidiary — (22,000) — Dividend from subsidiaries 8,000 4,900 3,600 Acquisition of Eastern Virginia Bankshares, Inc. — (10) — Net cash and cash equivalents (used in) provided by investing activities 8,000 (17,110) 3,600 Financing activities: Issuance of subordinated notes, net of cost — 26,075 — Issuance of common stock 443 1,004 236 Cash dividends paid on common stock (7,688) (5,798) (3,921) Net cash and cash equivalents provided by (used in) financing activities (7,245) 21,281 (3,685) Increase (decrease) in cash and cash equivalents (3,142) 3,679 33 Cash and cash equivalents at beginning of period 4,535 856 823 Cash and cash equivalents at end of period $ 1,393 $ 4,535 $ 856 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2018 | |
Statement Of Other Comprehensive Income [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 19. ACCUMULATED OTHER COMPREHENSIVE LOSS The following is a summary of the accumulated other comprehensive loss balances, net of tax (in thousands): Balance at Current Period Balance at December 31, 2017 Change December 31, 2018 Unrealized loss on investment securities available for sale $ (999) $ (1,420) $ (2,419) Unrecognized gain on investment securities held to maturity for which other than temporary impairment charges have been taken 311 — 311 Unrealized loss on investment securities available for sale transferred to held to maturity (464) (17) (481) Total $ (1,152) $ (1,437) $ (2,589) |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 20. RELATED PARTY TRANSACTIONS Sonabank has entered into loan transactions with STM. The following table summarizes the changes in the loan amount outstanding with STM during the periods indicated (in thousands): 2018 2017 Balance at January 1, $ 25,767 $ 8,126 Principal advances 296,627 238,503 Acquired from EVBS — 13,044 Principal paid (298,226) (233,906) Balance at December 31, $ 24,168 $ 25,767 Sonabank has established with STM underwriting guidelines under which it will purchase residential construction only, construction loans that convert to permanent, and permanent loans primarily in its Virginia and Maryland footprint from STM. These will be largely loans that do not conform to FNMA or FHLMC standards because of size or acreage. We purchased loans in an aggregate amount of $125.1 million during 2018, and $102.1 million during 2017 from STM. During the year, officers, directors, principal shareholders, and their affiliates (related parties) were customers of and had transactions with the Company. Loan activity to related parties is as follows (in thousands): 2018 Balance at January 1, $ 24,850 Principal advances 667 Principal paid (1,557) Balance at December 31, $ 23,960 Sonabank has also entered into deposit transactions with its related parties including STM, all of which are under the same terms as other customers. The aggregate amount of these deposit accounts were $12.8 million and $15.6 million as of December 31, 2018 and 2017, respectively. |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | 21. QUARTERLY FINANCIAL DATA (UNAUDITED) Interest Net Interest Income (Loss) Net Earnings (Loss) Per Share Income Income Before Taxes Income (Loss) Basic Diluted (dollars in thousands, except per share amounts) 2018 First quarter $ 28,020 $ 22,500 $ 10,360 $ 8,259 $ 0.34 $ 0.34 Second quarter 29,683 23,174 11,060 8,867 0.37 0.37 Third quarter 30,054 22,588 11,061 8,861 0.37 0.36 Fourth quarter 31,150 22,804 10,824 7,704 0.32 0.32 2017 First quarter $ 12,545 $ 9,891 $ 3,221 $ 2,054 $ 0.17 $ 0.16 Second quarter 14,249 11,205 (3,804) (2,842) (0.21) (0.21) Third quarter 28,811 23,850 6,463 4,374 0.18 0.18 Fourth quarter 27,965 22,971 9,692 (1,161) (0.05) (0.05) |
LOW INCOME HOUSING TAX CREDITS
LOW INCOME HOUSING TAX CREDITS | 12 Months Ended |
Dec. 31, 2018 | |
Low Income Housing Tax Credits [Abstract] | |
LOW INCOME HOUSING TAX CREDITS | 22. LOW INCOME HOUSING TAX CREDITS The merger with EVBS on June 23, 2017 included investments in four separate housing equity funds that remain outstanding at December 31, 2018. The general purpose of these funds is to encourage and assist participants in investing in low-income residential rental properties located in the Commonwealth of Virginia, develop and implement strategies to maintain projects as low-income housing, deliver Federal Low Income Housing Credits to investors, allocate tax losses and other possible tax benefits to investors, and to preserve and protect project assets. The investments in these funds were recorded as other assets on the consolidated balance sheets and were carried at $2.7 million and $1.9 million at December 31, 2018 and 2017, respectively. These investments and related tax benefits have expected terms through 2033, with the majority maturing by 2027. Tax credits and other tax benefits recognized related to these investments during the years ended December 31, 2018 and 2017 were $285 thousand and $227 th ousand , respectively. Total projected tax credits to be received for 2018 are $469 thousand, which is based on the most recent quarterly estimates received from the funds. Additional capital calls expected for the funds totaled $4.1 million and $949 thousand at December 31, 2018 and 2017, respectively. |
ORGANIZATION AND SIGNIFICANT AC
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Organization And Significant Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation 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. |
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 include: 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, fair value measurements related to assets acquired and liabilities assumed from business combinations, other real estate owned (“OREO”) and deferred tax assets. |
Business Combinations | Business Combinations U.S. GAAP requires that the acquisition method of accounting be used for all business combinations and that an acquirer be identified for each business combination. Under U.S. GAAP, the acquirer is the entity that obtains control of one or more businesses in the business combination, and the acquisition date is the date the acquirer achieves control. U.S. GAAP requires that the acquirer recognize the fair value of assets acquired, liabilities assumed, and any non‑controlling interest in the acquiree at the acquisition date, with any excess of purchase price recognized as either intangibles or goodwill. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the acquirer shall report in its financial statements provisional amounts for the items for which the accounting is incomplete. The measurement period ends as soon as the acquirer receives the information it was seeking about facts and circumstances that existed as of the acquisition date or learns that more information is not obtainable. However, the measurement period shall not exceed one year from the acquisition date. The acquirer recognizes an increase (decrease) in the provisional amount recognized for an identifiable asset (liability) by means of a decrease (increase) in goodwill. |
Investment Securities | Investment Securities Debt securities that Southern National has the positive intent and ability to hold to maturity are classified as held-to-maturity and carried at amortized cost. Securities classified as available for sale are those debt securities that may be sold in response to changes in interest rates, liquidity needs or other similar factors. Securities available for sale are carried at fair value, with unrealized gains or losses net of deferred taxes, included in accumulated other comprehensive income (loss) in stockholders’ equity. Purchased premiums and discounts are recognized in interest income using the interest method over the terms of the securities without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Gains and losses on the sale of investment securities are recorded on the settlement date and are determined using the specific identification method. Southern National purchases amortizing investment securities in which the underlying assets are residential mortgage loans subject to prepayments. The actual principal reduction on these assets varies from the expected contractual principal reduction due to principal prepayments resulting from the borrowers’ election to refinance the underlying mortgage based on market and other conditions. The purchased premiums and discounts associated with these assets are amortized or accreted to interest income over the estimated life of the related assets. The estimated life is calculated by projecting future prepayments and the resulting principal cash flows until maturity. Prepayment rate projections utilize actual prepayment speed experience and available market information on like-kind instruments. The prepayment rates form the basis for income recognition of premiums and discounts on the related assets. Changes in prepayment estimates may cause the earnings recognized on these assets to vary over the term that the assets are held, creating volatility in the net interest margin. Prepayment rate assumptions are monitored and updated monthly to reflect actual activity and the most recent market projections. Management evaluates investment securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For investment securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, an investment security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. In order to determine OTTI for purchased beneficial interests that, on the purchase date, were not highly rated, Southern National compares the present value of the remaining cash flows as estimated at the preceding evaluation date to the current expected remaining cash flows. OTTI is deemed to have occurred if there has been an adverse change in the remaining expected future cash flows. |
Loans | Loans Southern National provides mortgage, commercial and consumer loans to customers. A substantial portion of the loan portfolio is represented by loans secured by real estate throughout its market area. The ability of Southern National’s debtors to honor their contracts is in varying degrees dependent upon the real estate market conditions and general economic conditions in this area. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding unpaid principal balances adjusted for the allowance for loan losses, purchased premiums and discounts and any deferred loan fees or costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method without anticipating prepayments. Commercial real estate consists of borrowings secured by owner occupied and non-owner occupied commercial real estate. Repayment of these loans is dependent upon rental income or the subsequent sale of the property for loans secured by non-owner occupied commercial real estate and by cash flows from business operations for owner occupied commercial real estate. Loans for which the source of repayment is rental income are primarily impacted by local economic conditions which dictate occupancy rates and the amount of rent charged. Commercial real estate loans that are dependent on cash flows from operations can also be adversely affected by current market conditions for their product or service. Construction and land development primarily consist of borrowings to purchase and develop raw land into residential and non-residential properties. Construction loans are extended to individuals as well as corporations for the construction of an individual or multiple properties and are secured by raw land and the subsequent improvements. Repayment of the loans to real estate developers is dependent upon the sale or lease of properties to third parties in a timely fashion upon completion. Should there be delays in construction or a downturn in the market for those properties, there may be significant erosion in value which may be absorbed by Southern National. Commercial loans consist of borrowings for commercial purposes to individuals, corporations, partnerships, sole proprietorships, and other business enterprises. Commercial loans are generally secured by business assets such as equipment, accounts receivable, inventory, or any other asset excluding real estate and generally made to finance capital expenditures or operations. Southern National’s risk exposure is related to deterioration in the value of collateral securing the loan should foreclosure become necessary. Generally, business assets used or produced in operations do not maintain their value upon foreclosure which may require Southern National to write-down the value significantly to sell. Residential real estate loans consist of loans to individuals for the purchase of primary residences with repayment primarily through wage or other income sources of the individual borrower. Southern National’s loss exposure to these loans is dependent on local market conditions for residential properties as loan amounts are determined, in part, by the fair value of the property at origination. On May 15, 2014, we purchased a 44.0% equity investment and preferred stock of STM, a regional mortgage banking company headquartered in Virginia Beach, Virginia. On June 23, 2017, in connection with the EVBS acquisition, we added 4.9% of additional equity investment and preferred stock in STM, bringing us to a total equity investment of 48.9%. STM has mortgage banking originators in Delaware, Virginia, Maryland, North Carolina and South Carolina. STM only originates retail mortgage production. Sonabank has established with STM underwriting guidelines under which it will purchase residential construction only, construction loans that convert to permanent, and permanent loans primarily in its Virginia and Maryland footprint from STM. These will be largely loans that do not conform to FNMA or FHLMC standards because of size or acreage. Other consumer loans are comprised of loans to individuals both unsecured and secured and home equity loans secured by real estate (closed and open-end), with repayment dependent on individual wages and other income. The risk of loss on consumer loans is elevated as the collateral securing these loans, if any, rapidly depreciate in value or may be worthless and/or difficult to locate if repossession is necessary. Losses in this portfolio are generally relatively low, however, due to the small individual loan size and the balance outstanding as a percentage of Southern National’s entire portfolio. As part of the Greater Atlantic Bank (“GAB”) acquisition, the Bank and the Federal Deposit Insurance Corporation (“FDIC”) entered into a loss sharing agreement on approximately $143.4 million (cost basis) of GAB’s assets. The Bank will share in the losses on the loans and foreclosed loan collateral with the FDIC as specified in the loss sharing agreement; we refer to these assets collectively as “covered assets.” The indemnification against losses in the GAB commercial portfolio ended in December 2014. The FDIC indemnification on the GAB residential mortgages and the GAB HELOCs continues until December 2019. Loans that are not covered in the loss sharing agreement with the FDIC are referred to as “non-covered loans.” The accrual of interest on all loans is discontinued at the time the loan is 90 days delinquent unless the credit is well secured and in process of collection. In all cases, loans are placed on nonaccrual status or charged-off at an earlier date if collection of principal and interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual status or charged-off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Most of Southern National’s business activity is with customers located within Virginia and Maryland. Therefore, our exposure to credit risk is significantly affected by changes in the economy in those areas. We are not dependent on any single customer or group of customers whose insolvency would have a material adverse effect on operations. Southern National has purchased, primarily through acquisitions, individual loans and groups of loans, some of which have shown evidence of credit deterioration since origination. These purchased loans are recorded at fair value such that there is no carryover of the seller’s allowance for loan losses. After acquisition, losses are recognized by an increase in the allowance for loan losses. Purchased credit-impaired (“PCI”) loans are accounted for using the expected cash flow methodology, and purchased performing loans are accounted for using the contractual cash flow methodology. Such purchased loans are accounted for individually or aggregated into pools of loans based on common risk characteristics such as, credit score, loan type, and date of origination. Southern National estimates the amount and timing of expected cash flows for each PCI loan or pool, and the expected cash flows in excess of fair value are recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loans’ or pool’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. In accordance with Accounting Standards Codification (“ASC”) 310‑30, “ Loans and debt securities acquired with Deteriorated Credit Quality,” and based on current information and events, if it becomes probable that there is a significant increase in cash flows previously expected to be collected or if actual cash flows are significantly greater than cash flows previously expected, the Bank will recalculate the amount of accretable yield for the acquired loans as the excess of the revised cash flows expected to be collected over the sum of (1) the initial investment in the loans less (2) cash collected less (3) write downs, if any plus (4) the amount of yield accreted to date. The amount of accretable yield will be adjusted by reclassification from non-accretable yield. This adjustment would be accounted for as a change in estimate with the amount of periodic accretion adjusted over the remaining life of the loans. |
Allowance for Loan and Lease Losses ("ALLL") | Allowance for Loan and Lease Losses (“ALLL”) The allowance for loan and lease losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the collection of the principal is unlikely. Recoveries of amounts previously charged-off are credited to the allowance. Management’s determination of the adequacy of the allowance is based on a three year historical average net loss experience for each portfolio segment adjusted for current industry and economic conditions and estimates of their effect on loan collectability. While management uses available information to estimate losses on loans, future additions to the allowance may be necessary based on changes in economic conditions, particularly those affecting real estate values. The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component provides for estimated losses in unimpaired loans and is based on historical loss experience adjusted for current factors. A loan is considered impaired when, based on current information and events, it is probable that Southern National will be unable to collect the scheduled payments of principal or interest when due according to the terms of the loan. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. The general component covers non‑impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual net loss history experienced by Southern National over the most recent three years, except consumer loans that are tracked on a two year basis. This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment. These economic factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. The following portfolio segments have been identified: owner occupied commercial real estate, non-owner occupied commercial real estate, construction and land development, commercial loans, 1‑4 family residential, and other consumer. While underwriting practices in this environment are more stringent, the Bank estimates the effect of internal factors on future net loss experience to be negligible. Management’s estimate of the effect of current external economic environmental conditions on future net loss experience is significant in all loan segments and particularly on loans secured by real estate including single family 1‑4, non-owner occupied commercial real estate and construction and land development loans. These factors include excess inventory, generally less demand driven in part by fewer qualified borrowers and buyers. These considerations have played a significant role in management’s estimate of the adequacy of the allowance for loan and lease losses. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from Southern National, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and Southern National does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Equity Method Investments | Equity Method Investments Southern National’s investment in STM, our mortgage affiliate, is being accounted for under the equity method. Under the equity method, the carrying value of Southern National’s investment in STM was originally recorded at cost but is adjusted periodically to record Southern National’s proportionate share of STM’s earnings or losses through noninterest income and decreased by the amount of cash dividends or similar distributions received from STM. |
Bank Premises and Equipment | Bank Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Buildings and related components are depreciated using the straight-line method with useful lives of 30 years. Furniture, fixtures and equipment are depreciated using the straight-line method with useful lives ranging from 3 to 10 years. Leasehold improvements are amortized over the shorter of their estimated useful lives or the lease term. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill resulting from business combinations after January 1, 2009, is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually. Southern National has selected September 30 th as the date to perform the annual goodwill impairment assessment. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on our balance sheet. Other intangible assets consist of loan servicing rights and core deposit intangible assets arising from whole-bank and branch acquisitions and are amortized over their estimated useful lives, which range from 6 to 15 years. |
Stock Based Compensation | Stock Based Compensation Compensation cost is recognized for stock options issued to employees, based on the fair value of these awards at the date of grant. A Black-Scholes option-pricing model is utilized to estimate the fair value of stock options. Compensation cost for grants of restricted shares is accounted for based on the closing price of Southern National’s common stock on the date the restricted shares are awarded. Compensation cost for stock options and restricted shares is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. |
Bank-owned Life Insurance | Bank-owned Life Insurance Southern National has purchased, and acquired through acquisitions, life insurance policies on certain former and current key executives. Bank-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. |
Other Real Estate Owned ("OREO") | Other Real Estate Owned (“OREO”) Real estate acquired through or instead of foreclosure is held for sale and initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. If fair value declines subsequent to foreclosure, a direct charge-off is recorded through expense. Operating costs after acquisition are expensed as incurred. |
Stock in Federal Home Loan Bank ("FHLB") and Federal Reserve Bank ("FRB") | Stock in Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) The Bank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. The Bank is also required to own FRB stock with a par value equal to 6% of capital. FHLB and FRB stock are carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Premises and equipment, core deposit intangible assets and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. |
FDIC Indemnification Asset | FDIC Indemnification Asset The acquisition of GAB on December 4, 2009 was accounted for under the acquisition method of accounting, and the assets and liabilities were recorded at their estimated fair values. The FDIC indemnification asset was measured separately from each of the covered asset categories as it is not contractually embedded in any of the covered asset categories. The indemnification asset represents the present value of cash flows expected to be received from the FDIC for future losses on covered assets based on the expected credit losses estimated for each covered loan or loan pool and the loss sharing percentages at the acquisition date. We acquired the GAB loans in December 2009 and continuously evaluate our estimates of expected losses on these loans. There were two agreements with the FDIC, one for single family assets 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. |
Retirement Plans | Retirement Plans Employee 401(k) plan expense is the amount of matching contributions. Supplemental retirement plan expense allocates the benefits over years of service. |
Loss Contingencies | Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are such matters that will have a material effect on the financial statements. |
Dividend Restriction | Dividend Restriction Banking regulations require maintaining certain capital levels and may limit the dividends paid by the Bank to Southern National or by Southern National to shareholders. |
Estimates and Uncertainties | Estimates and Uncertainties Estimates including the carrying value of investment securities, other than temporary impairment of investment securities, the determination of the allowance for loan losses, expected loan performance and recoveries from the FDIC, the valuation of goodwill, intangible assets, OREO and deferred tax assets, and fair value measurements related to assets acquired and liabilities assumed from business combinations, involves uncertainties and matters of significant judgement regarding interest rates, credit risk, repayments and prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. |
Operating Segments | Operating Segments While the chief decision-makers monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a company-wide basis. Discrete financial information is not available other than on a company-wide basis. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment. |
Reclassifications | Reclassifications In certain instances, amounts reported in prior years’ consolidated financial statements have been reclassified to conform to the current financial statement presentation. Such reclassifications had no effect on previously reported cash flows, stockholders’ equity or net income. |
Income Taxes | Income Taxes Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. We have no unrecognized tax benefits and do not anticipate any increase in unrecognized tax benefits during the next twelve months. Should the accrual of any interest or penalties relative to unrecognized tax benefits be necessary, it is our policy to record such accruals in our income tax accounts; no such accruals exist as of December 31, 2018. Southern National and its subsidiaries file a consolidated U.S. federal tax return; Sonabank files a Maryland state income tax return and Southern National files a Virginia state income tax return. These returns are subject to examination by taxing authorities for all years after 2014. On December 22, 2017 the Tax Cuts and Jobs Act was enacted into Federal Law. The new law establishes a new flat corporate federal statutory income tax rate of 21%. For more information on the impact the new law had on Southern National, see discussion in Note 12 - Income Taxes. |
Restrictions on Cash | Restrictions on Cash No regulatory reserve or clearing requirements with the FRB were needed at December 31, 2018 and 2017. |
Consolidated Statements of Cash Flows | Consolidated Statements of Cash Flows For purposes of reporting cash flows, Southern National defines cash and cash equivalents as cash due from financial institutions, interest-bearing deposits and federal funds sold in other financial institutions with maturities less than 90 days. Net cash flows are reported for customer loan and deposit transactions and short-term borrowings. |
Earnings Per Share ("EPS") | Earnings Per Share (“EPS”) Basic EPS is computed by dividing net income by the weighted average number of common shares outstanding during the year. Diluted EPS reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to net income that would result from the assumed issuance. Potential common shares that may be issued by Southern National relate solely to outstanding stock options and warrants and are determined using the treasury stock method. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income and other comprehensive (loss) income. Other comprehensive (loss) income includes unrealized gains and losses on investment securities available for sale and the non-credit component of other than temporary impairment of investment securities held-to-maturity which are also recognized as a separate component of equity. |
Off Balance Sheet Credit Related Financial Instruments | Off Balance Sheet Credit Related Financial Instruments In the ordinary course of business, Southern National has entered into commitments to extend credit, standby letters of credit, and guarantees of previously sold credit card accounts assumed in the merger with EVBS. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Dec. 31, 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) 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 of premiums and accretion of discounts associated with the Company’s acquisition accounting adjustments to assets acquired and liabilities assumed from EVBS had the following impact on the consolidated statements of income for the years ended December 31, 2018 and 2017: For the Years Ended December 31, (dollars in thousands) 2018 2017 Loans (1) $ 3,470 $ 2,800 Time deposits (2) 773 407 Junior and senior subordinated debt (3) 11 43 Core deposit intangible (4) (1,253) (651) Net impact to income before income taxes $ 3,001 $ 2,599 (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 | 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 |
Schedule of unaudited pro forma | Southern National expects to achieve further operational cost savings and other efficiencies as a result of the acquisition which are not reflected in the pro forma amounts below: Pro Forma Pro Forma Twelve Months Ended Twelve Months Ended December 31, December 31, (dollars in thousands, except per share data) 2017 2016 Net interest income $ 91,010 $ 85,114 Net income 9,555 18,354 Earnings per share, basic $ 0.40 $ 0.77 Earnings per share, diluted $ 0.39 $ 0.76 Weighted average shares outstanding - Basic 23,923,410 23,923,410 Weighted average shares outstanding - Diluted 24,228,054 24,228,054 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity 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 Cost Gains Losses Value December 31, 2018 Residential government-sponsored mortgage-backed securities $ 27,945 $ — $ (643) $ 27,302 Obligations of states and political subdivisions 18,305 30 (280) 18,055 Corporate securities 2,008 1 (1) 2,008 Trust preferred securities 2,589 356 (304) 2,641 Residential government-sponsored collateralized mortgage obligations 44,095 3 (1,041) 43,057 Government-sponsored agency securities 3,247 — (122) 3,125 Agency commercial mortgage-backed securities 28,069 — (765) 27,304 SBA pool securities 20,183 10 (308) 19,885 Total $ 146,441 $ 400 $ (3,464) $ 143,377 Amortized Gross Unrealized Fair Cost Gains Losses Value December 31, 2017 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 Cost Gains Losses Value December 31, 2018 Residential government-sponsored mortgage-backed securities $ 9,699 $ 4 $ (230) $ 9,473 Obligations of states and political subdivisions 21,496 85 (147) 21,434 Trust preferred securities 2,610 150 (1) 2,759 Residential government-sponsored collateralized mortgage obligations 6,001 — (91) 5,910 Government-sponsored agency securities 52,656 — (3,123) 49,533 Total $ 92,462 $ 239 $ (3,592) $ 89,109 Amortized Gross Unrecognized Fair Cost Gains Losses Value December 31, 2017 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 | Available for Sale Held to Maturity Amortized Amortized Cost Fair Value Cost Fair Value Due in one to five years $ 3,373 $ 3,329 $ 5,359 $ 5,350 Due in five to ten years 6,594 6,531 19,071 18,291 Due after ten years 16,182 15,969 52,332 50,085 Residential government-sponsored mortgage-backed securities 27,945 27,302 9,699 9,473 Residential government-sponsored collateralized mortgage obligations 44,095 43,057 6,001 5,910 Agency commercial mortgage-backed securities 28,069 27,304 — — SBA pool securities 20,183 19,885 — — Total $ 146,441 $ 143,377 $ 92,462 $ 89,109 |
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 December 31, 2018 and 2017 by duration of time in a loss position (in thousands): December 31, 2018 Less than 12 months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Available for Sale value Losses value Losses value Losses Residential government-sponsored mortgage-backed securities $ 393 $ (5) $ 26,910 $ (638) $ 27,303 $ (643) Obligations of states and political subdivisions 2,220 (78) 13,385 (202) 15,605 (280) Corporate securities 1,008 (1) — — 1,008 (1) Trust preferred securities — — 795 (304) 795 (304) Residential government-sponsored collateralized mortgage obligations — — 42,598 (1,041) 42,598 (1,041) Government-sponsored agency securities — — 3,125 (122) 3,125 (122) Agency commercial mortgage-backed securities — — 27,304 (765) 27,304 (765) SBA pool securities 6,009 (70) 10,546 (238) 16,555 (308) Total $ 9,630 $ (154) $ 124,663 $ (3,310) $ 134,293 $ (3,464) December 31, 2018 Less than 12 months 12 Months or More Total Fair Unrecognized Fair Unrecognized Fair Unrecognized Held to Maturity value Losses value Losses value Losses Residential government-sponsored mortgage-backed securities $ — $ — $ 8,935 $ (230) $ 8,935 $ (230) Obligations of states and political subdivisions 3,273 (10) 7,187 (137) 10,460 (147) Trust preferred securities — — 60 (1) 60 (1) Residential government-sponsored collateralized mortgage obligations — — 5,910 (91) 5,910 (91) Government-sponsored agency securities — — 49,532 (3,123) 49,532 (3,123) Total $ 3,273 $ (10) $ 71,624 $ (3,582) $ 74,897 $ (3,592) December 31, 2017 Less than 12 months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Available for Sale value Losses value Losses value 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) December 31, 2017 Less than 12 months 12 Months or More Total Fair Unrecognized Fair Unrecognized Fair Unrecognized Held to Maturity value Losses value Losses value 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 December 31, 2018, we owned pooled trust preferred investment securities as follows (in thousands): % of Previously Current Recognized Defaults and Cumulative Ratings When Estimated Deferrals to Other Tranche 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 $ 2,748 $ 2,550 $ 2,700 17 % $ 219 MMCF III B Senior Sub A3 A- Ba1 BBB 61 60 59 45 % 4 2,809 2,610 2,759 $ 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 1,099 795 28 % $ 400 ALESCO V C1 Mezzanine A2 A Caa1 C 2,150 1,490 1,846 14 % 660 3,650 2,589 2,641 $ 1,060 Total $ 6,459 $ 5,199 $ 5,400 (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 years ended December 31, 2018, 2017 and 2016 are shown in the table below. All amounts are net of tax (in thousands). Unrealized Holding Losses on Held to Maturity For the year ended December 31, 2018 Available for Sale Securities Total Beginning balance $ (999) $ (153) $ (1,152) Amounts reclassified from accumulated other comprehensive income due to the adoption of ASU 2018-02 (199) (30) (229) Subtotal (1,198) (183) (1,381) Current period other comprehensive (loss) income (1,221) 13 (1,208) Ending balance $ (2,419) $ (170) $ (2,589) Unrealized Holding Losses on Held to Maturity For the year ended December 31, 2017 Available for Sale Securities Total Beginning balance $ (627) $ (162) $ (789) Other comprehensive income before reclassifications (372) (246) (618) Amounts reclassified from accumulated other comprehensive income — 255 255 Net current-period other comprehensive (loss) income (372) 9 (363) Ending balance $ (999) $ (153) $ (1,152) Unrealized Holding Losses on Held to Maturity For the year ended December 31, 2016 Available for Sale Securities Total Beginning balance $ (440) $ (170) $ (610) Other comprehensive (loss) income before reclassifications (187) 8 (179) Net current-period other comprehensive (loss) income (187) 8 (179) Ending balance $ (627) $ (162) $ (789) |
LOANS AND ALLOWANCE FOR LOAN _2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Loans and Allowance for Loan Losses [Abstract] | |
Schedule of loans, net of unearned income | Loans, net of deferred fees, consist of the following at year end (in thousands): December 31, 2018 December 31, 2017 Loans secured by real estate: Commercial real estate - owner occupied $ 407,031 $ 401,847 Commercial real estate - non-owner occupied 540,698 440,700 Secured by farmland 20,966 23,038 Construction and land loans 146,654 197,972 Residential 1-4 family 565,083 483,006 Multi- family residential 82,516 70,892 Home equity lines of credit 128,225 152,829 Total real estate loans 1,891,173 1,770,284 Commercial loans 255,441 253,258 Consumer loans 32,347 39,374 Gross loans 2,178,961 2,062,916 Less deferred fees on loans (137) (588) Loans, net of deferred fees $ 2,178,824 $ 2,062,328 (1) Includes $18.3 million and $23.3 million of loans as of December 31, 2018 and 2017, respectively, acquired in the GAB transaction covered under an FDIC loss-share agreement. The agreement covering single family loans expires in December 2019. |
Schedule of summary of impaired loans | Impaired loans for the portfolio were as follows (in thousands): Total Loans Unpaid Recorded Principal Related December 31, 2018 Investment (1) Balance Allowance With no related allowance recorded Commercial real estate - owner occupied $ 2,795 $ 4,777 $ — Commercial real estate - non-owner occupied (2) 171 333 — Construction and land development — 336 — Commercial loans 3,450 6,013 — Residential 1-4 family (3) 1,591 5,911 — Other consumer loans — — — Total $ 8,007 $ 17,370 $ — With an allowance recorded Commercial real estate - owner occupied $ — $ — $ — Commercial real estate - non-owner occupied (2) — — — Construction and land development — — — Commercial loans 2,626 3,276 612 Residential 1-4 family (3) 1,429 1,476 6 Other consumer loans — — — Total $ 4,055 $ 4,752 $ 618 Grand total $ 12,062 $ 22,122 $ 618 (1) Recorded investment is after cumulative prior charge offs of $6.8 million. These loans also have aggregate SBA guarantees of $ 3.4 million. (2) Includes loans secured by farmland and multi-family residential 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) Recorded investment is after cumulative prior charge offs of $6.8 million. These loans also have aggregate SBA guarantees of $5.0 million. (2) Includes loans secured by farmland and multi-family residential 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 years ended December 31, 2018, 2017 and 2016 (in thousands): Total Loans Average Interest Recorded Income Year Ended December 31, 2018 Investment Recognized With no related allowance recorded Commercial real estate - owner occupied $ 2,780 $ 179 Commercial real estate - non-owner occupied (1) 169 22 Construction and land development — — Commercial loans 3,319 92 Residential 1-4 family (2) 1,582 125 Other consumer loans — — Total $ 7,850 $ 418 With an allowance recorded Commercial real estate - owner occupied $ — $ — Commercial real estate - non-owner occupied (1) — — Construction and land development — — Commercial loans 2,530 200 Residential 1-4 family (2) 1,422 67 Other consumer loans — — Total $ 3,952 $ 267 Grand total $ 11,802 $ 685 (1) Includes loans secured by farmland and multi-family residential loans. (2) Includes home equity lines of credit. Total Loans Average Interest Recorded Income Year Ended December 31, 2017 Investment Recognized With no related allowance recorded Commercial real estate - owner occupied $ 875 $ 34 Commercial real estate - non-owner occupied (1) 890 56 Construction and land development 9,942 139 Commercial loans 12,655 485 Residential 1-4 family (2) 3,398 91 Other consumer loans — — Total $ 27,760 $ 805 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 $ 27,760 $ 805 (1) Includes loans secured by farmland and multi-family residential loans. (2) Includes home equity lines of credit. Total Loans Average Interest Recorded Income Year Ended December 31, 2016 Investment Recognized With no related allowance recorded Commercial real estate - owner occupied $ 6,454 $ 292 Commercial real estate - non-owner occupied (1) 103 3 Construction and land development — — Commercial loans 2,888 54 Residential 1-4 family (2) 988 32 Other consumer loans — — Total $ 10,433 $ 381 With an allowance recorded Commercial real estate - owner occupied $ 694 $ 31 Commercial real estate - non-owner occupied (1) — — Construction and land development — — Commercial loans 3,402 155 Residential 1-4 family (2) — — Other consumer loans — — Total $ 4,096 $ 186 Grand total $ 14,529 $ 567 (1) Includes loans secured by farmland and multi-family residential 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 December 31, 2018 and 2017 (in thousands): 30 - 59 60 - 89 Days Days 90 Days Total Nonaccrual Loans Not Total December 31, 2018 Past Due Past Due or More Past Due Loans Past Due Loans Total loans: Commercial real estate - owner occupied $ 577 $ 344 $ — $ 921 $ 1,284 $ 404,826 $ 407,031 Commercial real estate - non-owner occupied (1) 581 617 — 1,198 — 642,982 644,180 Construction and land development 851 — — 851 — 145,803 146,654 Commercial loans 319 168 — 487 3,391 251,563 255,441 Residential 1-4 family (2) 5,523 197 — 5,720 2,055 685,533 693,308 Other consumer loans 142 18 — 160 — 32,187 32,347 Total $ 7,993 $ 1,344 $ — $ 9,337 $ 6,730 $ 2,162,894 $ 2,178,961 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 residential loans. (2) Includes home equity lines of credit. |
Schedule of Activity for Loan and Lease Losses By Class of Loan | Activity in the allowance for loan and lease losses by class of loan for the years ended December 31, 2018, 2017 and 2016 is summarized below (in thousands): Commercial Commercial Real Estate Real Estate Construction Other Owner Non-owner and Land Commercial 1-4 Family Consumer Year Ended December 31, 2018 Occupied Occupied (1) Development Loans Residential (2) Loans Unallocated Total Allowance for loan losses: Beginning balance $ 690 $ 1,321 $ 692 $ 4,496 $ 1,586 $ 612 $ — $ 9,397 Provision for non-purchased loans 497 348 129 1,941 237 (116) 564 3,600 Provision for purchase credit impaired loans — — — 600 — — — 600 Total provision 497 348 129 2,541 237 (116) 564 4,200 Charge offs (400) — — (1,566) (842) (290) — (3,098) Recoveries 15 — — 1,626 125 18 — 1,784 Ending balance $ 802 $ 1,669 $ 821 $ 7,097 $ 1,106 $ 224 $ 564 $ 12,283 Year Ended December 31, 2017 Allowance for loan losses: Beginning balance $ 905 $ 1,484 $ 752 $ 3,366 $ 1,279 $ 78 $ 746 $ 8,610 Provision (347) (362) (61) 8,842 659 640 (746) 8,625 Charge offs — (100) — (8,250) (369) (110) — (8,829) Recoveries 132 299 1 538 17 4 — 991 Ending balance $ 690 $ 1,321 $ 692 $ 4,496 $ 1,586 $ 612 $ — $ 9,397 Year ended December 31, 2016 Allowance for loan losses: Beginning balance $ 1,185 $ 1,222 $ 865 $ 3,041 $ 1,408 $ 48 $ 652 $ 8,421 Provision 511 262 215 3,599 (117) 348 94 4,912 Charge offs (799) — (449) (3,370) (22) (322) — (4,962) Recoveries 8 — 121 96 10 4 — 239 Ending balance $ 905 $ 1,484 $ 752 $ 3,366 $ 1,279 $ 78 $ 746 $ 8,610 (1) Includes loans secured by farmland and multi-family residential loans. (2) Includes home equity lines of credit. |
Schedule of allowance for loan losses and the recorded investment by portfolio segment | The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2018 and 2017 (in thousands): Commercial Commercial Real Estate Real Estate Construction Other Owner Non-owner and Land Commercial 1-4 Family Consumer December 31, 2018 Occupied Occupied (1) Development Loans Residential (2) Loans Unallocated Total Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ — $ — $ 600 $ — $ — $ — $ 600 Collectively evaluated for impairment 802 1,669 821 6,497 1,106 224 564 11,683 Total ending allowance $ 802 $ 1,669 $ 821 $ 7,097 $ 1,106 $ 224 $ 564 $ 12,283 Loans: Individually evaluated for impairment $ 2,795 $ 171 $ — $ 3,450 $ 1,591 $ — $ — $ 8,007 Collectively evaluated for impairment 404,236 644,009 146,654 251,991 691,717 32,347 — 2,170,954 Total ending loan balances $ 407,031 $ 644,180 $ 146,654 $ 255,441 $ 693,308 $ 32,347 $ — $ 2,178,961 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 residential loans. (2) Includes home equity lines of credit. |
Schedule of the risk category of loans by class of loans | As of December 31, 2018 and 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 December 31, 2018 Mention Substandard (3) Pass Total Commercial real estate - owner occupied $ 6,611 $ 2,810 $ 397,610 $ 407,031 Commercial real estate - non-owner occupied (1) 4,382 189 639,609 644,180 Construction and land development — — 146,654 146,654 Commercial loans 2,373 2,689 250,379 255,441 Residential 1-4 family (2) 395 1,982 690,931 693,308 Other consumer loans 142 — 32,205 32,347 Total $ 13,903 $ 7,670 $ 2,157,388 $ 2,178,961 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 $3.4 million and $5.0 million as of December 31, 2018 and 2017, respectively. |
Schedule of carrying amount of covered purchased impaired and non-impaired loans | The following table presents the carrying amount of purchased impaired and non-impaired loans from the acquisitions as of December 31, 2018 and 2017 (in thousands): December 31, 2018 December 31, 2017 Purchased Purchased Purchased Purchased Impaired Non-impaired Impaired Non-impaired Loans Loans Total Loans Loans Total Commercial real estate (1) $ 4,387 $ 379,889 $ 384,276 $ 7,036 $ 431,586 $ 438,622 Construction and land development 358 47,466 47,824 396 89,121 89,517 Commercial loans 3,050 71,146 74,196 3,787 114,700 118,487 Residential 1-4 family (2) 3,654 275,527 279,181 2,395 342,688 345,083 Other consumer loans — 21,731 21,731 — 33,706 33,706 Total $ 11,449 $ 795,759 $ 807,208 $ 13,614 $ 1,011,801 $ 1,025,415 (1) Includes owner occupied and non-owner occupied as well as loans secured by farmland and multi-family residential loans. Includes home equity lines of credit. |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets measured at fair value on a recurring basis | 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) December 31, 2018 (Level 1) (Level 2) (Level 3) Available for sale securities Residential government-sponsored mortgage-backed securities $ 27,302 $ — $ 27,302 $ — Obligations of states and political subdivisions 18,055 — 18,055 — Corporate securities 2,008 — 1,008 1,000 Trust preferred securities 2,641 — 2,641 — Residential government-sponsored collateralized mortgage obligations 43,057 — 43,057 — Government-sponsored agency securities 3,125 — 3,125 — Agency commercial mortgage-backed securities 27,304 — 27,304 — SBA pool securities 19,885 — 19,885 — Total $ 143,377 $ — $ 142,377 $ 1,000 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) 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) December 31, 2018 (Level 1) (Level 2) (Level 3) Impaired loans: Commercial real estate - owner occupied $ 2,795 $ — $ — $ 2,795 Commercial real estate - non-owner occupied (1) 171 — — 171 Commercial loans 6,076 — — 6,076 Residential 1-4 family (2) 3,020 — — 3,020 Assets held for sale 600 — — 600 Other real estate owned: Commercial real estate - owner occupied (1) 908 — — 908 Construction and land development 2,938 — — 2,938 Residential 1-4 family (2) 1,231 — — 1,231 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): December 31, 2018 December 31, 2017 Fair Value Carrying Fair Carrying Fair Hierarchy Level Amount Value Amount Value Financial assets: Cash and cash equivalents Level 1 $ 28,611 $ 28,611 $ 25,463 $ 25,463 Securities available for sale Level 2 143,377 143,377 160,673 160,673 Securities held to maturity Level 2 92,462 89,109 98,912 97,597 Stock in Federal Reserve Bank and Federal Home Loan Bank Level 2 19,522 19,522 26,775 26,775 Equity investment in mortgage affiliate Level 3 3,829 3,829 4,723 4,723 Preferred investment in mortgage affiliate Level 3 3,305 3,305 3,305 3,305 Net loans Level 3 2,166,541 2,134,021 2,052,931 2,058,779 Accrued interest receivable Level 2 & Level 3 8,745 8,745 8,073 8,073 Financial liabilities: Demand deposits Level 1 $ 665,640 665,640 $ 649,067 $ 649,067 Money market and savings accounts Level 1 506,519 506,519 517,031 517,031 Certificates of deposit Level 3 925,441 919,175 699,058 694,368 Securities sold under agreements to repurchase Level 1 18,721 18,721 15,468 15,468 FHLB short term advances Level 1 163,340 163,340 335,615 335,615 Junior subordinated debt Level 2 9,584 12,065 9,534 12,043 Senior subordinated notes Level 2 47,089 57,173 47,128 58,163 Accrued interest payable Level 1 & Level 3 3,985 3,985 2,273 2,273 |
BANK PREMISES AND EQUIPMENT (Ta
BANK PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of bank premises and equipment | Bank premises and equipment as of December 31, 2018 and 2017 were as follows (in thousands): 2018 2017 Land $ 8,139 $ 8,133 Land improvements 2,027 2,027 Building and improvements 32,960 33,928 Leasehold improvements 3,221 3,217 Furniture and equipment 20,338 20,022 Construction in progress 133 41 66,818 67,368 Less accumulated depreciation and amortization 34,466 31,580 Bank premises and equipment, net $ 32,352 $ 35,788 |
Schedule of future minimum rental payments required under non-cancelable operating leases for bank premises | Future minimum rental payments required under non-cancelable operating leases for bank premises that have initial or remaining terms in excess of one year as of December 31, 2018 are as follows (in thousands): 2019 $ 2,628 2020 2,093 2021 1,337 2022 1,269 2023 1,111 Thereafter 2,201 Total $ 10,639 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of acquired intangible assets | Intangible assets were as follows at year end (in thousands): December 31, 2018 Gross Carrying Accumulated Net Carrying Value Amortization Value Amortizable core deposit intangibles $ 17,503 $ (8,894) $ 8,609 December 31, 2017 Gross Carrying Accumulated Net Carrying Value Amortization Value Amortizable core deposit intangibles $ 17,503 $ (7,449) $ 10,054 |
Schedule of estimated amortization expense of intangibles | Estimated amortization expense of intangibles for the years ended December 31 were as follows (in thousands): 2019 $ 1,428 2020 1,375 2021 1,375 2022 1,334 2023 1,278 Thereafter 1,934 Total $ 8,724 |
FDIC INDEMNIFICATION ASSET (Tab
FDIC INDEMNIFICATION ASSET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fdic Indemnification Asset [Abstract] | |
Schedule of changes in the indemnification asset | The following table presents changes in the indemnification asset for the periods indicated (in thousands): 2018 2017 Balance as of January 1 $ 1,353 $ 2,111 Payments from FDIC — (46) Amortization (704) (712) Balance as of December 31, $ 649 $ 1,353 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deposits [Abstract] | |
Schedule of scheduled maturities of time deposits | At December 31, 2018, the scheduled maturities of time deposits are as follows (in thousands): 2019 $ 690,563 2020 157,071 2021 44,887 2022 22,615 2023 10,305 Total $ 925,441 |
Schedule of maturities of certificates of deposit | The following table sets forth the maturities of certificates of deposit of $250 thousand and over as of December 31, 2018 (in thousands): Within 3 to 6 6 to 12 Over 12 3 Months Months Months Months Total $ 14,374 $ 28,379 $ 91,411 $ 56,452 $ 190,616 |
SECURITIES SOLD UNDER AGREEME_2
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Abstract] | |
Schedule of other short-term borrowings | Other short-term borrowings consist of the following (in thousands): December 31, 2018 2017 2016 FHLB overnight advances $ 5,500 $ 56,860 $ 50,000 Other short-term FHLB advances maturing 6/27/2019 40,000 — — Other short-term FHLB advances maturing 6/18/2019 27,200 — — Other short-term FHLB advances maturing 6/12/2019 10,000 — — Other short-term FHLB advances maturing 6/11/2019 80,640 — — Other short-term FHLB advances maturing 6/27/2018 — 10,000 — Other short-term FHLB advances maturing 6/20/2018 — 27,200 — Other short-term FHLB advances maturing 6/14/2018 — 10,000 — Other short-term FHLB advances maturing 6/13/2018 — 80,640 — Other short-term FHLB advances maturing 6/12/2018 — 10,000 — Other short-term FHLB advances maturing 3/28/2018 — 30,000 — Other short-term FHLB advances maturing 3/14/2018 — 80,640 — Other short-term FHLB advances maturing 3/13/2018 — 30,275 — Other short-term FHLB advances maturing 3/27/2017 — — 10,000 Other short-term FHLB advances maturing 5/4/2017 — — 10,000 Other short-term FHLB advances maturing 6/5/2017 — — 10,000 Other short-term FHLB advances maturing 6/19/2017 — — 5,000 Other short-term FHLB advances maturing 12/15/2017 — — 10,000 Securities sold under agreements to repurchase 18,721 15,468 — Total $ 182,061 $ 351,083 $ 95,000 Weighted average interest rate at year end 2.68 % 1.50 % 0.86 % For the periods ended December 31, 2018, 2017 and 2016: Average outstanding balance $ 324,155 $ 177,983 $ 66,864 Average interest rate during the year 1.91 % 1.24 % 0.74 % Maximum month-end outstanding balance $ 411,511 $ 351,083 $ 95,000 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
INCOME TAXES [Abstract] | |
Schedule of net deferred tax assets | Net deferred tax assets at December 31, 2018 and 2017 consist primarily of the following: (in thousands): 2018 2017 Deferred tax assets: Allowance for loan losses $ 2,686 $ 2,100 Organization costs 42 78 Unearned loan fees and other 1,058 987 Other real estate owned write-downs 783 794 Other than temporary impairment charge 232 235 Net unrealized loss on investment securities available for sale 694 367 Purchase accounting 1,909 3,411 Federal and state net operating loss carryforward 762 4,845 Federal AMT credit carryforward 1,137 1,137 Federal low income housing credit carryforward 2,887 2,386 Deferred compensation 1,390 1,114 Other 687 712 Total deferred tax assets 14,267 18,166 Deferred tax liabilities: FDIC indemnification asset 140 300 Depreciation 23 963 Total deferred tax liabilities 163 1,263 Net deferred tax assets $ 14,104 $ 16,903 |
Schedule of provision for income taxes | The provision for income taxes consists of the following for the years ended December 31, 2018, 2017 and 2016 (in thousands): 2018 2017 2016 Current tax expense Federal $ 6,244 $ 3,145 $ 4,781 State 249 316 285 Total current tax expense 6,493 3,461 5,066 Deferred tax expense (benefit) Federal 2,692 10,234 28 State 429 (548) 1 Total deferred tax expense 3,121 9,686 29 Total income tax expense $ 9,614 $ 13,147 $ 5,095 |
Schedule of income tax expense determined by applying the U.S. Federal income tax rate | The income tax expense differed from the amount of income tax determined by applying the U.S. Federal income tax rate of 21% to pretax income for the year ended December 31, 2018 and 34% to pretax income for the years ended December 31, 2017 and 2016 due to the following (in thousands): 2018 2017 2016 Computed expected tax expense at statutory rate $ 9,094 $ 5,294 $ 5,238 Increase (decrease) in tax expense resulting from: Deferred tax impairment 1,130 — — Low income housing tax credits (502) — — Income from bank-owned life insurance (416) (316) (238) Other, net 308 234 95 Transaction costs — 724 — Tax adjustment related to reduction in U.S. federal statutory income tax rate — 7,211 — Income tax expense $ 9,614 $ 13,147 $ 5,095 |
STOCK- BASED COMPENSATION (Tabl
STOCK- BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |
Schedule of activity in the stock option plan | A summary of the activity in the stock option plan for 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 (14,617) 15.24 Exercised (58,000) 7.62 Options outstanding, end of period 642,350 $ 9.77 5.0 $ 2,219 Exercisable at end of period 498,900 $ 8.96 4.3 $ 1,988 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 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 EPS computations for 2018, 2017 and 2016 (amounts in thousands, except per share data): Weighted Average Income Shares Per Share (Numerator) (Denominator) Amount For the year ended December 31, 2018 Basic EPS $ 33,691 24,012 $ 1.40 Effect of dilutive stock options — 261 (0.01) Diluted EPS $ 33,691 24,273 $ 1.39 For the year ended December 31, 2017 Basic EPS $ 2,425 18,391 $ 0.13 Effect of dilutive stock options and warrants — 281 — Diluted EPS $ 2,425 18,672 $ 0.13 For the year ended December 31, 2016 Basic EPS $ 10,312 12,252 $ 0.84 Effect of dilutive stock options and warrants — 175 (0.01) Diluted EPS $ 10,312 12,427 $ 0.83 |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Regulatory Matters [Abstract] | |
Schedule of capital amounts and ratios for southern national and sonabank | The capital amounts and ratios for Southern National and Sonabank at year end are presented in the following table (in thousands): Required For Capital To Be Categorized as Actual Adequacy Purposes (1) Well Capitalized (2) Amount Ratio Amount Ratio Amount Ratio December 31, 2018 Southern National Common equity tier 1 capital ratio $ 239,554 11.57 % $ 93,135 4.50 % n/a n/a Tier 1 risk-based capital ratio 249,554 12.06 % 124,180 6.00 % n/a n/a Total risk-based capital ratio 308,838 14.92 % 165,573 8.00 % n/a n/a Leverage ratio 249,554 9.57 % 104,338 4.00 % n/a n/a Sonabank Common equity tier 1 capital ratio $ 288,018 13.64 % $ 95,020 4.50 % $ 137,251 6.50 % Tier 1 risk-based capital ratio 288,018 13.64 % 126,693 6.00 % 168,924 8.00 % Total risk-based capital ratio 300,301 14.22 % 168,924 8.00 % 211,156 10.00 % Leverage ratio 288,018 11.03 % 104,420 4.00 % 105,578 5.00 % December 31, 2017 Southern National Common equity tier 1 capital ratio $ 211,399 10.53 % $ 90,300 4.50 % n/a n/a Tier 1 risk-based capital ratio 220,430 10.98 % 120,399 6.00 % n/a n/a Total risk-based capital ratio 276,827 13.80 % 160,533 8.00 % n/a n/a Leverage ratio 220,430 8.82 % 100,022 4.00 % n/a n/a Sonabank Common equity tier 1 capital ratio $ 256,615 12.79 % $ 90,282 4.50 % $ 130,407 6.50 % Tier 1 risk-based capital ratio 256,615 12.79 % 120,375 6.00 % 160,500 8.00 % Total risk-based capital ratio 266,012 13.26 % 160,500 8.00 % 200,626 10.00 % Leverage ratio 256,615 10.26 % 100,040 4.00 % 125,051 5.00 % (1) When fully phased-in on January 1, 2019, the Basel III capital rules include a capital conservation buffer of 2.5% that is added on top of each of the minimum risk-based capital ratios noted above. Implementation began on January 1, 2016 at the 0.625% level and will increase each subsequent January 1, until it reaches 2.5% on January 1, 2019. (2) PCA provisions are not applicable at the bank holding company level. |
PARENT COMPANY FINANCIAL INFO_2
PARENT COMPANY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Schedule of condensed balance sheet of Southern National Bancorp of Virginia, Inc. | Condensed financial information of Southern National Bancorp of Virginia, Inc. follows (in thousands): CONDENSED BALANCE SHEETS DECEMBER 31, 2018 2017 ASSETS Cash $ 1,393 $ 4,535 Investment in subsidiaries 397,063 369,266 Other assets 7,174 6,405 Total assets $ 405,630 $ 380,206 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Junior subordinated debt $ 9,584 $ 9,534 Senior subordinated notes 47,089 47,128 Other liabilities 667 772 Total liabilities 57,340 57,434 Stockholders' equity: Common stock 240 239 Additional paid in capital 305,654 304,932 Retained earnings 44,985 18,753 Accumulated other comprehensive loss (2,589) (1,152) Total stockholders' equity 348,290 322,772 Total liabilities and stockholders' equity $ 405,630 $ 380,206 |
Schedule of condensed statements of income of Southern National Bancorp of Virginia, Inc. | CONDENSED STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 2018 2017 2016 Income: Cash dividends received from subsidiaries $ 8,000 $ 4,900 $ 3,600 Interest on deposit with subsidiary — 3 — Total income 8,000 4,903 3,600 Expenses: Interest on junior subordinated debt 575 253 — Interest on senior subordinated notes 2,847 2,194 — Merger expenses — 2,812 — Other operating expenses 765 478 153 Total expenses 4,187 5,737 153 Income (loss) before income tax benefit and equity in undistributed net income of subsidiary 3,813 (834) 3,447 Income tax benefit (872) (1,196) (52) Equity in undistributed net income of subsidiary 29,006 2,063 6,813 Net income $ 33,691 $ 2,425 $ 10,312 |
Schedule of condensed statements of cash flows information of Southern National Bancorp of Virginia, Inc. | CONDENSED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2018 2017 2016 Operating activities: Net income $ 33,691 $ 2,425 $ 10,312 Adjustments to reconcile net income to net cash and cash equivalents (used in) provided by operating activities: Equity in undistributed net income of subsidiary (37,006) (6,963) (10,413) Other, net (582) 4,046 219 Net cash and cash equivalents (used in) provided by operating activities (3,897) (492) 118 Investing activities: Increase in investment in subsidiary — (22,000) — Dividend from subsidiaries 8,000 4,900 3,600 Acquisition of Eastern Virginia Bankshares, Inc. — (10) — Net cash and cash equivalents (used in) provided by investing activities 8,000 (17,110) 3,600 Financing activities: Issuance of subordinated notes, net of cost — 26,075 — Issuance of common stock 443 1,004 236 Cash dividends paid on common stock (7,688) (5,798) (3,921) Net cash and cash equivalents provided by (used in) financing activities (7,245) 21,281 (3,685) Increase (decrease) in cash and cash equivalents (3,142) 3,679 33 Cash and cash equivalents at beginning of period 4,535 856 823 Cash and cash equivalents at end of period $ 1,393 $ 4,535 $ 856 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement Of Other Comprehensive Income [Abstract] | |
Schedule of the accumulated other comprehensive loss balances, net of tax | The following is a summary of the accumulated other comprehensive loss balances, net of tax (in thousands): Balance at Current Period Balance at December 31, 2017 Change December 31, 2018 Unrealized loss on investment securities available for sale $ (999) $ (1,420) $ (2,419) Unrecognized gain on investment securities held to maturity for which other than temporary impairment charges have been taken 311 — 311 Unrealized loss on investment securities available for sale transferred to held to maturity (464) (17) (481) Total $ (1,152) $ (1,437) $ (2,589) |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Southern Trust Mortgage [Member] | |
Related Party Transaction [Line Items] | |
Schedule of changes in the loan amount outstanding during the periods | The following table summarizes the changes in the loan amount outstanding with STM during the periods indicated (in thousands): 2018 2017 Balance at January 1, $ 25,767 $ 8,126 Principal advances 296,627 238,503 Acquired from EVBS — 13,044 Principal paid (298,226) (233,906) Balance at December 31, $ 24,168 $ 25,767 |
Officers and Directors and Principal Shareholders and Their Affiliates [Member]. | |
Related Party Transaction [Line Items] | |
Schedule of changes in the loan amount outstanding during the periods | Loan activity to related parties is as follows (in thousands): 2018 Balance at January 1, $ 24,850 Principal advances 667 Principal paid (1,557) Balance at December 31, $ 23,960 |
QUARTERLY FINANCIAL DATA (UNA_2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of income statement information (unaudited) | Interest Net Interest Income (Loss) Net Earnings (Loss) Per Share Income Income Before Taxes Income (Loss) Basic Diluted (dollars in thousands, except per share amounts) 2018 First quarter $ 28,020 $ 22,500 $ 10,360 $ 8,259 $ 0.34 $ 0.34 Second quarter 29,683 23,174 11,060 8,867 0.37 0.37 Third quarter 30,054 22,588 11,061 8,861 0.37 0.36 Fourth quarter 31,150 22,804 10,824 7,704 0.32 0.32 2017 First quarter $ 12,545 $ 9,891 $ 3,221 $ 2,054 $ 0.17 $ 0.16 Second quarter 14,249 11,205 (3,804) (2,842) (0.21) (0.21) Third quarter 28,811 23,850 6,463 4,374 0.18 0.18 Fourth quarter 27,965 22,971 9,692 (1,161) (0.05) (0.05) |
ORGANIZATION AND SIGNIFICANT _2
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Narrative 1) (Details) $ in Millions | Jun. 23, 2017 | Dec. 31, 2018USD ($)property | Dec. 31, 2017 | May 15, 2014 |
Organization And Significant Accounting Policies [Line Items] | ||||
Number of branches | property | 38 | |||
Additional equity method investment ownership percentage | 4.90% | |||
GAB acquisition [Member] | ||||
Organization And Significant Accounting Policies [Line Items] | ||||
Loss sharing agreement | $ 143.4 | |||
Southern Trust Mortgage [Member] | ||||
Organization And Significant Accounting Policies [Line Items] | ||||
Percentage of equity investment and preferred stock of STM | 48.90% | 44.00% | ||
Federal Deposit Insurance Corporation [Member] | GAB acquisition [Member] | ||||
Organization And Significant Accounting Policies [Line Items] | ||||
Loss sharing agreement | $ 143.4 |
ORGANIZATION AND SIGNIFICANT _3
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Narrative 2) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Building and Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation method | straight-line method |
Useful lives | 30 years |
Furniture, Fixtures and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation method | straight-line method |
Minimum [Member] | Furniture, Fixtures and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 3 years |
Maximum [Member] | Furniture, Fixtures and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 10 years |
ORGANIZATION AND SIGNIFICANT _4
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Narrative 3) (Details) - Core Deposits [Member] | 12 Months Ended |
Dec. 31, 2018 | |
Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 6 years |
Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 15 years |
ORGANIZATION AND SIGNIFICANT _5
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Narrative 4) (Details) $ in Thousands | 12 Months Ended | ||||||||
Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($)segment | Dec. 31, 2018USD ($)agreement | Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Mar. 31, 2019USD ($) | |
Organization And Significant Accounting Policies [Line Items] | |||||||||
Percentage of capital, par value FRB stock required to own | 6.00% | ||||||||
FDIC indemnification asset | $ 649 | $ 649 | $ 649 | $ 649 | $ 649 | $ 649 | $ 1,353 | $ 2,111 | |
Number of agreement with FDIC | 2 | 2 | |||||||
Number of reportable segment | segment | 1 | ||||||||
Number of operating segments | segment | 1 | ||||||||
U.S. Federal income tax rate | 21.00% | 21.00% | 34.00% | 34.00% | |||||
Accounting Standards Update 2018-02 [Member] | |||||||||
Organization And Significant Accounting Policies [Line Items] | |||||||||
Cumulative Effect on Retained Earnings, Net of Tax | $ 229 | ||||||||
Single Family Assets [Member] | |||||||||
Organization And Significant Accounting Policies [Line Items] | |||||||||
Term of FDIC agreement | 10 years | ||||||||
Number of agreement with FDIC | agreement | 1 | ||||||||
Non Single Family Commercial Assets [Member] | |||||||||
Organization And Significant Accounting Policies [Line Items] | |||||||||
Term of FDIC agreement | 5 years | ||||||||
Number of agreement with FDIC | agreement | 1 | ||||||||
Minimum [Member] | Scenario, Plan [Member] | |||||||||
Organization And Significant Accounting Policies [Line Items] | |||||||||
Operating Lease, Right-of-Use Asset | $ 8,000 | ||||||||
Operating Lease, Liability | 8,000 | ||||||||
Maximum [Member] | Scenario, Plan [Member] | |||||||||
Organization And Significant Accounting Policies [Line Items] | |||||||||
Operating Lease, Right-of-Use Asset | 10,000 | ||||||||
Operating Lease, Liability | $ 10,000 |
BUSINESS COMBINATIONS (Narrativ
BUSINESS COMBINATIONS (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 23, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill, acquired during period | $ 1,300 | $ 90,100 | ||
Goodwill | 101,954 | 100,606 | ||
Unpaid principal balance of loans | $ 17,370 | 27,872 | ||
Fair value of bank-owned real estate | $ 3,300 | |||
Acquisition-related expenses | $ 9,426 | $ 429 | ||
Eastern Virginia Bankshares Inc [Member] | ||||
Business Acquisition [Line Items] | ||||
Value of SNBV common stock | 198,909 | |||
Goodwill | 91,450 | |||
Amount of loans | 1,031,412 | |||
Unpaid principal balance of loans | 1,050,000 | |||
Amount of discount | 21,400 | |||
Loans held for sale | 19,689 | |||
Core deposit intangible | $ 10,025 | |||
Percentage of core deposits to total deposits | 0.90% | |||
Amortized over weighted average remaining life | 96 months | |||
Estimated fair value adjustment of time deposits | $ 1,200 | |||
Time deposits weighted average remaining life | 18 months | |||
Estimated fair value adjustment of junior subordinated debt | $ 9,509 | |||
Fair value adjustment, senior subordinated debt, net of issuance costs | $ 21,051 | |||
Eastern Virginia Bankshares Inc [Member] | Junior Subordinated Debt [Member] | ||||
Business Acquisition [Line Items] | ||||
Discount on accreted over remaining life | 195 months | |||
Eastern Virginia Bankshares Inc [Member] | Senior Subordinated Notes [Member] | ||||
Business Acquisition [Line Items] | ||||
Debt Instrument remaining discount 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 | |||
Estimated fair value adjustment of junior subordinated debt | (801) | |||
Fair value adjustment, senior subordinated debt, net of issuance costs | $ 1,876 | |||
Eastern Virginia Bankshares Inc [Member] | Series B Preferred Stock [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of shares issued for each outstanding share of EVBS | 0.6313 | |||
Eastern Virginia Bankshares Inc [Member] | Common Stock [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of shares issued for each outstanding share of EVBS | 0.6313 | |||
Closing common stock price | $ 17.21 |
BUSINESS COMBINATIONS (Schedule
BUSINESS COMBINATIONS (Schedule of Business Acquisitions) (Details) - USD ($) $ in Thousands | Jun. 23, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
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 |
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] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | ||
Loans | $ 3,470 | $ 2,800 |
Time deposits | 773 | 407 |
Junior and senior subordinated debt | 11 | 43 |
Core deposit intangible | (1,253) | (651) |
Net impact to income before income taxes | $ 3,001 | $ 2,599 |
BUSINESS COMBINATIONS (Schedu_3
BUSINESS COMBINATIONS (Schedule of loans and debt securities acquired with deteriorated credit quality) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 23, 2017 |
Business Acquisition [Line Items] | |||
Accretable difference | $ 13,500 | $ 17,500 | |
Eastern Virginia Bankshares Inc [Member] | |||
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 |
BUSINESS COMBINATIONS (Schedu_4
BUSINESS COMBINATIONS (Schedule of unaudited pro forma) (Details) - Eastern Virginia Bankshares Inc [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||
Net interest income | $ 91,010 | $ 85,114 |
Net income | $ 9,555 | $ 18,354 |
Earnings per share, basic | $ 0.40 | $ 0.77 |
Earnings per share, diluted | $ 0.39 | $ 0.76 |
Weighted average shares outstanding - Basic | 23,923,410 | 23,923,410 |
Weighted average shares outstanding - Diluted | 24,228,054 | 24,228,054 |
INVESTMENT SECURITIES (Narrativ
INVESTMENT SECURITIES (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Sale of investment available-for-sale | $ 4,767,000 | ||
Called investment securities | $ 14,360,000 | 7,987,000 | |
Securities pledged for collateral | $ 165,700,000 | 173,400,000 | |
Number of investment securities with fair values with temporary impairments | item | 184 | ||
Investment securities fair values with temporary impairments | $ 209,200,000 | ||
Realized gain from transaction | 257,000 | ||
Realized loss from transaction | 2,000 | ||
Debt Securities, Unrealized Gain (Loss), Total | 255,000 | ||
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% | ||
Amount of cumulative other-than-temporary impairment related to credit loss | $ 1,060,000 | 1,060,000 | $ 1,060,000 |
Reductions due to sales of securities for which an other-than-temporary impairment was previously recognized | $ 0 | 0 | $ 0 |
Residential Mortgage Backed Securities [Member] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Sale of investment available-for-sale | 1,300,000 | ||
US Government Agencies Debt Securities [Member] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Sale of investment available-for-sale | 3,200,000 | ||
Called investment securities | $ 5,700,000 |
INVESTMENT SECURITIES (Schedule
INVESTMENT SECURITIES (Schedule of amortized cost and fair value of securities available-for-sale) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis, Total | $ 146,441 | $ 162,189 |
Gross Unrealized Gains | 400 | 261 |
Gross Unrealized Losses | (3,464) | (1,777) |
Available for sale, fair value | 143,377 | 160,673 |
US Government Agencies Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis, Total | 27,945 | 31,145 |
Gross Unrealized Gains | 3 | |
Gross Unrealized Losses | (643) | (284) |
Available for sale, fair value | 27,302 | 30,864 |
US States and Political Subdivisions Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis, Total | 18,305 | 18,581 |
Gross Unrealized Gains | 30 | 187 |
Gross Unrealized Losses | (280) | (41) |
Available for sale, fair value | 18,055 | 18,727 |
Corporate Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis, Total | 2,008 | 2,013 |
Gross Unrealized Gains | 1 | 2 |
Gross Unrealized Losses | (1) | |
Available for sale, fair value | 2,008 | 2,015 |
Trust preferred securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis, Total | 2,589 | 2,590 |
Gross Unrealized Gains | 356 | |
Gross Unrealized Losses | (304) | (202) |
Available for sale, fair value | 2,641 | 2,388 |
Residential Mortgage Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis, Total | 44,095 | 51,521 |
Gross Unrealized Gains | 3 | 1 |
Gross Unrealized Losses | (1,041) | (756) |
Available for sale, fair value | 43,057 | 50,766 |
Government-Sponsored Agency Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis, Total | 3,247 | 3,247 |
Gross Unrealized Losses | (122) | (21) |
Available for sale, fair value | 3,125 | 3,226 |
Commercial Mortgage Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis, Total | 28,069 | 28,263 |
Gross Unrealized Losses | (765) | (365) |
Available for sale, fair value | 27,304 | 27,898 |
SBA Pool Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis, Total | 20,183 | 24,829 |
Gross Unrealized Gains | 10 | 68 |
Gross Unrealized Losses | (308) | (108) |
Available for sale, fair value | $ 19,885 | $ 24,789 |
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 | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Amortized Cost | $ 92,462 | $ 98,912 |
Gross Unrecognized Gains | 239 | 382 |
Gross Unrecognized Losses | (3,592) | (1,697) |
Securities held to maturity fair value (in dollars) | 89,109 | 97,597 |
Residential Mortgage Backed Securities [Member] | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Amortized Cost | 6,001 | 8,727 |
Gross Unrecognized Losses | (91) | (99) |
Securities held to maturity fair value (in dollars) | 5,910 | 8,628 |
US States and Political Subdivisions Debt Securities [Member] | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Amortized Cost | 21,496 | 22,830 |
Gross Unrecognized Gains | 85 | 169 |
Gross Unrecognized Losses | (147) | (56) |
Securities held to maturity fair value (in dollars) | 21,434 | 22,943 |
US Government Agencies Debt Securities [Member] | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Amortized Cost | 9,699 | 11,500 |
Gross Unrecognized Gains | 4 | 23 |
Gross Unrecognized Losses | (230) | (77) |
Securities held to maturity fair value (in dollars) | 9,473 | 11,446 |
Trust preferred securities | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Amortized Cost | 2,610 | 3,205 |
Gross Unrecognized Gains | 150 | 165 |
Gross Unrecognized Losses | (1) | (17) |
Securities held to maturity fair value (in dollars) | 2,759 | 3,353 |
Government-Sponsored Agency Securities | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Amortized Cost | 52,656 | 52,650 |
Gross Unrecognized Gains | 25 | |
Gross Unrecognized Losses | (3,123) | (1,448) |
Securities held to maturity fair value (in dollars) | $ 49,533 | $ 51,227 |
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 | Dec. 31, 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 | $ 5,359 | |
Held to Maturity, due in five to ten years, amortized cost | 19,071 | |
Held to maturity, due after ten years, amortized cost | 52,332 | |
Held to maturity, amortized cost | 92,462 | |
Held to Maturity, due in one to five years, fair value | 5,350 | |
Held to Maturity, due in five to ten years, fair value | 18,291 | |
Held to maturity, due after ten years, fair value | 50,085 | |
Held to maturity fair value | 89,109 | $ 97,597 |
Available for Sale, due in one to five years, amortized cost | 3,373 | |
Available for Sale, due in five to ten years, amortized cost | 6,594 | |
Available for sale, due after ten years, amortized cost | 16,182 | |
Available for sale, amortized cost | 146,441 | 162,189 |
Available for Sale, due in one to five years, fair value | 3,329 | |
Available for Sale, due in five to ten years, fair value | 6,531 | |
Available for sale, due after ten years, fair value | 15,969 | |
Available for sale, Fair value | 143,377 | |
US Government Agencies Debt Securities [Member] | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Held to maturity, amortized cost | 9,699 | |
Held to maturity fair value | 9,473 | 11,446 |
Available for sale, amortized cost | 27,945 | 31,145 |
Available for sale, Fair value | 27,302 | |
Residential Mortgage Backed Securities [Member] | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Held to maturity, amortized cost | 6,001 | |
Held to maturity fair value | 5,910 | 8,628 |
Available for sale, amortized cost | 44,095 | 51,521 |
Available for sale, Fair value | 43,057 | |
Commercial Mortgage Backed Securities [Member] | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Available for sale, amortized cost | 28,069 | 28,263 |
Available for sale, Fair value | 27,304 | |
SBA Pool Securities [Member] | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Available for sale, amortized cost | 20,183 | $ 24,829 |
Available for sale, Fair value | $ 19,885 |
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 | Dec. 31, 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 | $ 9,630 | $ 131,786 |
Available for sale, less than 12 months, unrealized losses | (154) | (1,593) |
Available for sale, 12 months or more, fair value | 124,663 | 915 |
Available for sale, 12 months or more, unrealized losses | (3,310) | (184) |
Available for sale, total fair value | 134,293 | 132,701 |
Available for sale, total unrealized losses | (3,464) | (1,777) |
Held to maturity, less than 12 months, fair value | 3,273 | 20,158 |
Held to Maturity, less than 12 months unrecognized losses | (10) | (108) |
Held to Maturity, 12 months or more, fair value | 71,624 | 44,056 |
Held to Maturity, 12 months or more, unrecognized losses | (3,582) | (1,589) |
Held to maturity, total fair value | 74,897 | 64,214 |
Held to maturity, total unrecognized losses | (3,592) | (1,697) |
US Government Agencies Debt Securities [Member] | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Available for sale, less than 12 months, fair value | 393 | 30,336 |
Available for sale, less than 12 months, unrealized losses | (5) | (284) |
Available for sale, 12 months or more, fair value | 26,910 | |
Available for sale, 12 months or more, unrealized losses | (638) | |
Available for sale, total fair value | 27,303 | 30,336 |
Available for sale, total unrealized losses | (643) | (284) |
Held to maturity, less than 12 months, fair value | 3,409 | |
Held to Maturity, less than 12 months unrecognized losses | (26) | |
Held to Maturity, 12 months or more, fair value | 8,935 | 2,986 |
Held to Maturity, 12 months or more, unrecognized losses | (230) | (51) |
Held to maturity, total fair value | 8,935 | 6,395 |
Held to maturity, total unrecognized losses | (230) | (77) |
US States and Political Subdivisions Debt Securities [Member] | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Available for sale, less than 12 months, fair value | 2,220 | 4,642 |
Available for sale, less than 12 months, unrealized losses | (78) | (41) |
Available for sale, 12 months or more, fair value | 13,385 | |
Available for sale, 12 months or more, unrealized losses | (202) | |
Available for sale, total fair value | 15,605 | 4,642 |
Available for sale, total unrealized losses | (280) | (41) |
Held to maturity, less than 12 months, fair value | 3,273 | 7,918 |
Held to Maturity, less than 12 months unrecognized losses | (10) | (34) |
Held to Maturity, 12 months or more, fair value | 7,187 | 1,782 |
Held to Maturity, 12 months or more, unrecognized losses | (137) | (22) |
Held to maturity, total fair value | 10,460 | 9,700 |
Held to maturity, total unrecognized losses | (147) | (56) |
Corporate Debt Securities [Member] | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Available for sale, less than 12 months, fair value | 1,008 | |
Available for sale, less than 12 months, unrealized losses | (1) | |
Available for sale, total fair value | 1,008 | |
Available for sale, total unrealized losses | (1) | |
Trust preferred securities | ||
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 | 795 | 915 |
Available for sale, 12 months or more, unrealized losses | (304) | (184) |
Available for sale, total fair value | 795 | 2,388 |
Available for sale, total unrealized losses | (304) | (202) |
Held to Maturity, 12 months or more, fair value | 60 | 240 |
Held to Maturity, 12 months or more, unrecognized losses | (1) | (17) |
Held to maturity, total fair value | 60 | 240 |
Held to maturity, total unrecognized losses | (1) | (17) |
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 | 50,555 | |
Available for sale, less than 12 months, unrealized losses | (756) | |
Available for sale, 12 months or more, fair value | 42,598 | |
Available for sale, 12 months or more, unrealized losses | (1,041) | |
Available for sale, total fair value | 42,598 | 50,555 |
Available for sale, total unrealized losses | (1,041) | (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 | 5,910 | 1,516 |
Held to Maturity, 12 months or more, unrecognized losses | (91) | (53) |
Held to maturity, total fair value | 5,910 | 8,628 |
Held to maturity, total unrecognized losses | (91) | (99) |
Government-Sponsored Agency Securities | ||
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 | 3,125 | |
Available for sale, 12 months or more, unrealized losses | (122) | |
Available for sale, total fair value | 3,125 | 1,726 |
Available for sale, total unrealized losses | (122) | (21) |
Held to maturity, less than 12 months, fair value | 1,719 | |
Held to Maturity, less than 12 months unrecognized losses | (2) | |
Held to Maturity, 12 months or more, fair value | 49,532 | 37,532 |
Held to Maturity, 12 months or more, unrecognized losses | (3,123) | (1,446) |
Held to maturity, total fair value | 49,532 | 39,251 |
Held to maturity, total unrecognized losses | (3,123) | (1,448) |
Commercial 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 | 27,304 | |
Available for sale, 12 months or more, unrealized losses | (765) | |
Available for sale, total fair value | 27,304 | 27,898 |
Available for sale, total unrealized losses | (765) | (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 | 6,009 | 15,156 |
Available for sale, less than 12 months, unrealized losses | (70) | (108) |
Available for sale, 12 months or more, fair value | 10,546 | |
Available for sale, 12 months or more, unrealized losses | (238) | |
Available for sale, total fair value | 16,555 | 15,156 |
Available for sale, total unrealized losses | $ (308) | $ (108) |
INVESTMENT SECURITIES (Schedu_5
INVESTMENT SECURITIES (Schedule of owned pooled trust preferred securities) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Security | |
Par value - security | $ 2,809 |
Book value - security | 2,610 |
Estimated fair value - security | 2,759 |
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 | 2,641 |
Cumulative Other Comprehensive Loss | 1,060 |
Trust preferred securities | |
Other than temporarily impaired | |
Par value | 6,459 |
Book value | 5,199 |
Estimated fair value | 5,400 |
Trust preferred securities | Alesco VII A1B Senior [Member] | |
Security | |
Par value - security | 2,748 |
Book value - security | 2,550 |
Estimated fair value - security | $ 2,700 |
Current Deferrals and Defaults - Security | 17.00% |
Previously Recognized Cumulative Other Comprehensive Loss | $ 219 |
Trust preferred securities | MMCF III B Senior Sub [Member] | |
Security | |
Par value - security | 61 |
Book value - security | 60 |
Estimated fair value - security | $ 59 |
Current Deferrals and Defaults - Security | 45.00% |
Previously Recognized Cumulative Other Comprehensive Loss | $ 4 |
Trust preferred securities | TPREF Funding II Mezzanine [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 | $ 795 |
Current Deferrals and Defaults - other than temporarily impaired | 28.00% |
Cumulative OTTI Related to Credit Loss | $ 400 |
Trust preferred securities | ALESCO V C1 Mezzanine [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 | $ 1,846 |
Current Deferrals and Defaults - other than temporarily impaired | 14.00% |
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 | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | $ 322,772 | $ 126,344 | $ 119,636 |
Net current-period other comprehensive income/(loss) | (1,208) | (363) | (179) |
Balance | 348,290 | 322,772 | 126,344 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (2,589) | (1,152) | |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | (1,152) | (789) | (610) |
Other comprehensive income/(loss) before reclassifications | (1,208) | (618) | (179) |
Amounts reclassified from accumulated other comprehensive income/(loss) | (229) | 255 | |
Net current-period other comprehensive income/(loss) | (1,437) | (363) | (179) |
Balance | (2,589) | (1,152) | (789) |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (2,589) | (1,152) | |
Accumulated Other Comprehensive Income (Loss) [Member] | Scenario, Previously Reported [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | (1,152) | ||
Balance | (1,152) | ||
Accumulated Other Comprehensive Income (Loss) [Member] | Restatement Adjustment [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Amounts reclassified from accumulated other comprehensive income/(loss) | (229) | ||
Accumulated Other Comprehensive Income (Loss) [Member] | Stockholders' Equity Not Including Adjustment [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | (1,381) | ||
Balance | (1,381) | ||
Accumulated Other Comprehensive Income (Loss) [Member] | Held-to-maturity Securities [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | (162) | (170) | |
Other comprehensive income/(loss) before reclassifications | 13 | (246) | 8 |
Amounts reclassified from accumulated other comprehensive income/(loss) | 255 | ||
Net current-period other comprehensive income/(loss) | 9 | 8 | |
Balance | (170) | (162) | |
Accumulated Other Comprehensive Income (Loss) [Member] | Held-to-maturity Securities [Member] | Scenario, Previously Reported [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | (153) | ||
Balance | (153) | ||
Accumulated Other Comprehensive Income (Loss) [Member] | Held-to-maturity Securities [Member] | Restatement Adjustment [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Amounts reclassified from accumulated other comprehensive income/(loss) | (30) | ||
Accumulated Other Comprehensive Income (Loss) [Member] | Held-to-maturity Securities [Member] | Stockholders' Equity Not Including Adjustment [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | (183) | ||
Balance | (183) | ||
Unrealized gains (losses) on securities available for sale | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | (999) | ||
Net current-period other comprehensive income/(loss) | (1,420) | ||
Balance | (2,419) | (999) | |
Unrealized gains (losses) on securities available for sale | Available-for-sale Securities [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | (627) | (440) | |
Other comprehensive income/(loss) before reclassifications | (1,221) | (372) | (187) |
Net current-period other comprehensive income/(loss) | (372) | (187) | |
Balance | (2,419) | $ (627) | |
Unrealized gains (losses) on securities available for sale | Available-for-sale Securities [Member] | Scenario, Previously Reported [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | (999) | ||
Balance | (999) | ||
Unrealized gains (losses) on securities available for sale | Available-for-sale Securities [Member] | Restatement Adjustment [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Amounts reclassified from accumulated other comprehensive income/(loss) | (199) | ||
Unrealized gains (losses) on securities available for sale | Available-for-sale Securities [Member] | Stockholders' Equity Not Including Adjustment [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | $ (1,198) | ||
Balance | $ (1,198) |
LOANS AND ALLOWANCE FOR LOAN _3
LOANS AND ALLOWANCE FOR LOAN LOSSES (Narrative) (Details) $ in Thousands | Jun. 23, 2017USD ($) | Dec. 04, 2009agreement | Jun. 30, 2015USD ($)loan | Dec. 31, 2018USD ($)loan | Dec. 31, 2017USD ($) |
Accounts Notes And Loans Receivable [Line Items] | |||||
Unpaid principal balance of loans | $ 17,370 | $ 27,872 | |||
Total loans | 2,178,961 | 2,062,916 | |||
Accretable discount on acquired EVBS, GAB, PGFSB and HarVest loans | $ 13,500 | 17,500 | |||
TDRs during period | loan | 2 | ||||
TDR, subsequent default, number of contracts | loan | 1 | ||||
TDR, subsequent default, amount | $ 662 | ||||
Mortgage loans in process of foreclosure, amount | $ 1,500 | 939 | |||
SBA guaranteed amounts included in nonaccrual loans | 3,400 | 4,700 | |||
Eastern Virginia Bankshares Inc [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Loans held for sale | $ 19,689 | ||||
Unpaid principal balance of loans | 1,050,000 | ||||
Amount of loans | 1,031,412 | ||||
Assets, fair value adjustment | 13,600 | ||||
Accretable discount on the acquired covered loans | 4,000 | 2,800 | |||
Accretable discount on acquired EVBS, GAB, PGFSB and HarVest loans | $ 398 | ||||
GAB acquisition [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Loss sharing agreement | 143,400 | ||||
Total loans | 807,208 | 1,025,415 | |||
Federal Deposit Insurance Corporation [Member] | GAB acquisition [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Loss sharing agreement | 143,400 | ||||
Number of agreements | agreement | 2 | ||||
Federal Deposit Insurance Corporation [Member] | GAB acquisition [Member] | Single Family Loans [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Term loan agreement expiring | 10 years | ||||
Federal Deposit Insurance Corporation [Member] | GAB acquisition [Member] | Non Single Family Commercial [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Term loan agreement expiring | 5 years | ||||
Residential Portfolio Segment [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Mortgage loans on real estate, foreclosures | $ 1,200 | $ 3,300 |
LOANS AND ALLOWANCE FOR LOAN _4
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Loans, net of Unearned Income) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts Notes And Loans Receivable [Line Items] | ||
Total real estate loans | $ 1,891,173 | $ 1,770,284 |
Gross loans | 2,178,961 | 2,062,916 |
Less deferred fees on loans | (137) | (588) |
Loans, net of deferred fees | 2,178,824 | 2,062,328 |
GAB acquisition [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total real estate loans | 18,300 | 23,300 |
Gross loans | 807,208 | 1,025,415 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total real estate loans | 407,031 | 401,847 |
Gross loans | 407,031 | 401,847 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total real estate loans | 540,698 | 440,700 |
Gross loans | 644,180 | 534,630 |
Commercial Real Estate Portfolio Segment [Member] | Loans And Leases Receivable Secured By Farmland [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total real estate loans | 20,966 | 23,038 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total real estate loans | 146,654 | 197,972 |
Gross loans | 146,654 | 197,972 |
Residential Portfolio Segment [Member] | 1-4 Family Residential | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total real estate loans | 565,083 | 483,006 |
Gross loans | 693,308 | 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 | 82,516 | 70,892 |
Residential Portfolio Segment [Member] | Home Equity Loan [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total real estate loans | 128,225 | 152,829 |
Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total real estate loans | 255,441 | 253,258 |
Gross loans | 255,441 | 253,258 |
Consumer Portfolio Segment [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total real estate loans | $ 32,347 | $ 39,374 |
LOANS AND ALLOWANCE FOR LOAN _5
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Summary of Impaired Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
With no related allowance recorded | ||
With no related allowance recorded - Recorded Investment | $ 8,007 | $ 20,697 |
With no related allowance recorded - Unpaid Principal Balance | 17,370 | 27,872 |
With an allowance recorded | ||
With an allowance recorded - Recorded Investment | 4,055 | |
With an allowance recorded - Unpaid Principal Balance | 4,752 | |
With an allowance recorded - Allowance for Loan Losses Allocated | 618 | |
Recorded Investment, Grand total | 12,062 | 20,697 |
Unpaid Principal Balance, Grand total | 22,122 | 27,872 |
Charge off on recorded investment | 6,800 | 6,800 |
Loans guaranteed by SBA | 3,400 | 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 | 2,795 | 767 |
With no related allowance recorded - Unpaid Principal Balance | 4,777 | 781 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | ||
With no related allowance recorded | ||
With no related allowance recorded - Recorded Investment | 171 | 766 |
With no related allowance recorded - Unpaid Principal Balance | 333 | 830 |
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 | |
Residential Portfolio Segment [Member] | 1-4 Family Residential | ||
With no related allowance recorded | ||
With no related allowance recorded - Recorded Investment | 1,591 | 3,160 |
With no related allowance recorded - Unpaid Principal Balance | 5,911 | 3,430 |
With an allowance recorded | ||
With an allowance recorded - Recorded Investment | 1,429 | |
With an allowance recorded - Unpaid Principal Balance | 1,476 | |
With an allowance recorded - Allowance for Loan Losses Allocated | 6 | |
Commercial Portfolio Segment [Member] | ||
With no related allowance recorded | ||
With no related allowance recorded - Unpaid Principal Balance | 336 | |
Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | ||
With no related allowance recorded | ||
With no related allowance recorded - Recorded Investment | 3,450 | 6,035 |
With no related allowance recorded - Unpaid Principal Balance | 6,013 | $ 12,847 |
With an allowance recorded | ||
With an allowance recorded - Recorded Investment | 2,626 | |
With an allowance recorded - Unpaid Principal Balance | 3,276 | |
With an allowance recorded - Allowance for Loan Losses Allocated | $ 612 |
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 | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
With no related allowance recorded | |||
With no related allowance recorded, Average Recorded Investment | $ 7,850 | $ 27,760 | $ 10,433 |
With no related allowance recorded, Interest Income Recognized | 418 | 805 | 381 |
With an allowance recorded | |||
With an allowance recorded, Average Recorded Investment | 3,952 | 4,096 | |
With an allowance recorded, Interest Income Recognized | 267 | 186 | |
Average Recorded Investment, Grand total | 11,802 | 27,760 | 14,529 |
Interest Income Recognized, Grand total | 685 | 805 | 567 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | |||
With no related allowance recorded | |||
With no related allowance recorded, Average Recorded Investment | 2,780 | 875 | 6,454 |
With no related allowance recorded, Interest Income Recognized | 179 | 34 | 292 |
With an allowance recorded | |||
With an allowance recorded, Average Recorded Investment | 694 | ||
With an allowance recorded, Interest Income Recognized | 31 | ||
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | |||
With no related allowance recorded | |||
With no related allowance recorded, Average Recorded Investment | 169 | 890 | 103 |
With no related allowance recorded, Interest Income Recognized | 22 | 56 | 3 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | |||
With no related allowance recorded | |||
With no related allowance recorded, Average Recorded Investment | 9,942 | ||
With no related allowance recorded, Interest Income Recognized | 139 | ||
Residential Portfolio Segment [Member] | 1-4 Family Residential | |||
With no related allowance recorded | |||
With no related allowance recorded, Average Recorded Investment | 1,582 | 3,398 | 988 |
With no related allowance recorded, Interest Income Recognized | 125 | 91 | 32 |
With an allowance recorded | |||
With an allowance recorded, Average Recorded Investment | 1,422 | ||
With an allowance recorded, Interest Income Recognized | 67 | ||
Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | |||
With no related allowance recorded | |||
With no related allowance recorded, Average Recorded Investment | 3,319 | 12,655 | 2,888 |
With no related allowance recorded, Interest Income Recognized | 92 | $ 485 | 54 |
With an allowance recorded | |||
With an allowance recorded, Average Recorded Investment | 2,530 | 3,402 | |
With an allowance recorded, Interest Income Recognized | $ 200 | $ 155 |
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 | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | $ 9,337 | $ 5,999 |
Recorded Investment, Nonaccrual Loans | 6,730 | 18,025 |
Recorded Investment, Loans Not Past Due | 2,162,894 | 2,038,892 |
Gross loans | 2,178,961 | 2,062,916 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 7,993 | 5,438 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 1,344 | 561 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 921 | 687 |
Recorded Investment, Nonaccrual Loans | 1,284 | |
Recorded Investment, Loans Not Past Due | 404,826 | 401,160 |
Gross loans | 407,031 | 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 | 577 | 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 | 344 | |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 1,198 | 188 |
Recorded Investment, Loans Not Past Due | 642,982 | 534,442 |
Gross loans | 644,180 | 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 | 581 | 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 | 617 | 50 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 851 | 1,283 |
Recorded Investment, Nonaccrual Loans | 9,969 | |
Recorded Investment, Loans Not Past Due | 145,803 | 186,720 |
Gross loans | 146,654 | 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 | 851 | 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 | 5,720 | 3,287 |
Recorded Investment, Nonaccrual Loans | 2,055 | 2,392 |
Recorded Investment, Loans Not Past Due | 685,533 | 630,156 |
Gross loans | 693,308 | 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 | 5,523 | 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 | 197 | 361 |
Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 487 | 496 |
Recorded Investment, Nonaccrual Loans | 3,391 | 5,664 |
Recorded Investment, Loans Not Past Due | 251,563 | 247,098 |
Gross loans | 255,441 | 253,258 |
Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 319 | 496 |
Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 168 | |
Other Consumer Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 160 | 58 |
Recorded Investment, Loans Not Past Due | 32,187 | 39,316 |
Gross loans | 32,347 | 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 | 142 | 57 |
Other Consumer Loans | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | $ 18 | $ 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 | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | $ 9,397 | $ 8,610 | $ 8,421 |
Charge offs | (3,098) | (8,829) | (4,962) |
Recoveries | 1,784 | 991 | 239 |
Provision for loan losses | 4,200 | 8,625 | 4,912 |
Ending balance | 12,283 | 9,397 | 8,610 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 690 | 905 | 1,185 |
Charge offs | (400) | (799) | |
Recoveries | 15 | 132 | 8 |
Provision for loan losses | 497 | (347) | 511 |
Ending balance | 802 | 690 | 905 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 1,321 | 1,484 | 1,222 |
Charge offs | (100) | ||
Recoveries | 299 | ||
Provision for loan losses | 348 | (362) | 262 |
Ending balance | 1,669 | 1,321 | 1,484 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 692 | 752 | 865 |
Charge offs | (449) | ||
Recoveries | 1 | 121 | |
Provision for loan losses | 129 | (61) | 215 |
Ending balance | 821 | 692 | 752 |
Residential Portfolio Segment [Member] | 1-4 Family Residential | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 1,586 | 1,279 | 1,408 |
Charge offs | (842) | (369) | (22) |
Recoveries | 125 | 17 | 10 |
Provision for loan losses | 237 | 659 | (117) |
Ending balance | 1,106 | 1,586 | 1,279 |
Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 4,496 | 3,366 | 3,041 |
Charge offs | (1,566) | (8,250) | (3,370) |
Recoveries | 1,626 | 538 | 96 |
Provision for loan losses | 2,541 | 8,842 | 3,599 |
Ending balance | 7,097 | 4,496 | 3,366 |
Unallocated | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 746 | 652 | |
Provision for loan losses | 564 | (746) | 94 |
Ending balance | 564 | 746 | |
Other Consumer Loans | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 612 | 78 | 48 |
Charge offs | (290) | (110) | (322) |
Recoveries | 18 | 4 | 4 |
Provision for loan losses | (116) | 640 | 348 |
Ending balance | 224 | $ 612 | $ 78 |
Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Provision for loan losses | 600 | ||
Receivables Acquired with Deteriorated Credit Quality [Member] | Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Provision for loan losses | 600 | ||
Receivables Acquired Without Deteriorated Credit Quality [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Provision for loan losses | 3,600 | ||
Receivables Acquired Without Deteriorated Credit Quality [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Provision for loan losses | 497 | ||
Receivables Acquired Without Deteriorated Credit Quality [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Provision for loan losses | 348 | ||
Receivables Acquired Without Deteriorated Credit Quality [Member] | Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Provision for loan losses | 129 | ||
Receivables Acquired Without Deteriorated Credit Quality [Member] | Residential Portfolio Segment [Member] | 1-4 Family Residential | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Provision for loan losses | 237 | ||
Receivables Acquired Without Deteriorated Credit Quality [Member] | Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Provision for loan losses | 1,941 | ||
Receivables Acquired Without Deteriorated Credit Quality [Member] | Unallocated | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Provision for loan losses | 564 | ||
Receivables Acquired Without Deteriorated Credit Quality [Member] | Other Consumer Loans | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Provision for loan losses | $ (116) |
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 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | $ 600 | |||
Collectively evaluated for impairment | 11,683 | $ 9,397 | ||
Total ending allowance | 12,283 | 9,397 | $ 8,610 | $ 8,421 |
Loans: | ||||
Individually evaluated for impairment | 8,007 | 20,697 | ||
Collectively evaluated for impairment | 2,170,954 | 2,042,219 | ||
Total ending loan balances | 2,178,961 | 2,062,916 | ||
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | ||||
Ending allowance balance attributable to loans: | ||||
Collectively evaluated for impairment | 802 | 690 | ||
Total ending allowance | 802 | 690 | 905 | 1,185 |
Loans: | ||||
Individually evaluated for impairment | 2,795 | 767 | ||
Collectively evaluated for impairment | 404,236 | 401,080 | ||
Total ending loan balances | 407,031 | 401,847 | ||
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | ||||
Ending allowance balance attributable to loans: | ||||
Collectively evaluated for impairment | 1,669 | 1,321 | ||
Total ending allowance | 1,669 | 1,321 | 1,484 | 1,222 |
Loans: | ||||
Individually evaluated for impairment | 171 | 766 | ||
Collectively evaluated for impairment | 644,009 | 533,864 | ||
Total ending loan balances | 644,180 | 534,630 | ||
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||||
Ending allowance balance attributable to loans: | ||||
Collectively evaluated for impairment | 821 | 692 | ||
Total ending allowance | 821 | 692 | 752 | 865 |
Loans: | ||||
Individually evaluated for impairment | 9,969 | |||
Collectively evaluated for impairment | 146,654 | 188,003 | ||
Total ending loan balances | 146,654 | 197,972 | ||
Residential Portfolio Segment [Member] | 1-4 Family Residential | ||||
Ending allowance balance attributable to loans: | ||||
Collectively evaluated for impairment | 1,106 | 1,586 | ||
Total ending allowance | 1,106 | 1,586 | 1,279 | 1,408 |
Loans: | ||||
Individually evaluated for impairment | 1,591 | 3,160 | ||
Collectively evaluated for impairment | 691,717 | 632,675 | ||
Total ending loan balances | 693,308 | 635,835 | ||
Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | ||||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 600 | |||
Collectively evaluated for impairment | 6,497 | 4,496 | ||
Total ending allowance | 7,097 | 4,496 | 3,366 | 3,041 |
Loans: | ||||
Individually evaluated for impairment | 3,450 | 6,035 | ||
Collectively evaluated for impairment | 251,991 | 247,223 | ||
Total ending loan balances | 255,441 | 253,258 | ||
Other Consumer Loans | ||||
Ending allowance balance attributable to loans: | ||||
Collectively evaluated for impairment | 224 | 612 | ||
Total ending allowance | 224 | 612 | 78 | 48 |
Loans: | ||||
Collectively evaluated for impairment | 32,347 | 39,374 | ||
Total ending loan balances | 32,347 | $ 39,374 | ||
Unallocated | ||||
Ending allowance balance attributable to loans: | ||||
Collectively evaluated for impairment | 564 | |||
Total ending allowance | $ 564 | $ 746 | $ 652 |
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 | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | $ 2,178,961 | $ 2,062,916 |
Loans guaranteed by SBA | 3,400 | 5,000 |
Special Mention [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 13,903 | 17,432 |
Substandard [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 7,670 | 22,447 |
Loans guaranteed by SBA | 3,400 | 5,000 |
Pass [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 2,157,388 | 2,023,037 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 407,031 | 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 | 6,611 | 4,178 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | Substandard [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 2,810 | 1,678 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | Pass [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 397,610 | 395,991 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 644,180 | 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 | 4,382 | 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 | 639,609 | 528,095 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 146,654 | 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 | 146,654 | 187,875 |
Residential Portfolio Segment [Member] | 1-4 Family Residential | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 693,308 | 635,835 |
Residential Portfolio Segment [Member] | 1-4 Family Residential | Special Mention [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 395 | 1,323 |
Residential Portfolio Segment [Member] | 1-4 Family Residential | Substandard [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 1,982 | 3,935 |
Residential Portfolio Segment [Member] | 1-4 Family Residential | Pass [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 690,931 | 630,577 |
Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 255,441 | 253,258 |
Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | Special Mention [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 2,373 | 5,936 |
Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | Substandard [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 2,689 | 6,035 |
Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | Pass [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 250,379 | 241,287 |
Other Consumer Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 32,347 | 39,374 |
Other Consumer Loans | Special Mention [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 142 | 162 |
Other Consumer Loans | Pass [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | $ 32,205 | $ 39,212 |
LOANS AND ALLOWANCE FOR LOAN_11
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of carrying amount of covered purchased impaired and non-impaired loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans | $ 2,178,961 | $ 2,062,916 | |
Other Consumer Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans | 32,347 | 39,374 | |
GAB acquisition [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans | 807,208 | 1,025,415 | |
GAB acquisition [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans | 11,449 | 13,614 | $ 3,417 |
GAB acquisition [Member] | Receivables Acquired Without Deteriorated Credit Quality [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans | 795,759 | 1,011,801 | $ 95,376 |
GAB acquisition [Member] | Commercial Real Estate [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans | 384,276 | 438,622 | |
GAB acquisition [Member] | Commercial Real Estate [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans | 4,387 | 7,036 | |
GAB acquisition [Member] | Commercial Real Estate [Member] | Receivables Acquired Without Deteriorated Credit Quality [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans | 379,889 | 431,586 | |
GAB acquisition [Member] | Construction and Land Development | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans | 47,824 | 89,517 | |
GAB acquisition [Member] | Construction and Land Development | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans | 358 | 396 | |
GAB acquisition [Member] | Construction and Land Development | Receivables Acquired Without Deteriorated Credit Quality [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans | 47,466 | 89,121 | |
GAB acquisition [Member] | Commercial Mortgage Loan | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans | 74,196 | 118,487 | |
GAB acquisition [Member] | Commercial Mortgage Loan | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans | 3,050 | 3,787 | |
GAB acquisition [Member] | Commercial Mortgage Loan | Receivables Acquired Without Deteriorated Credit Quality [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans | 71,146 | 114,700 | |
GAB acquisition [Member] | 1-4 Family Residential | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans | 279,181 | 345,083 | |
GAB acquisition [Member] | 1-4 Family Residential | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans | 3,654 | 2,395 | |
GAB acquisition [Member] | 1-4 Family Residential | Receivables Acquired Without Deteriorated Credit Quality [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans | 275,527 | 342,688 | |
GAB acquisition [Member] | Other Consumer Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans | 21,731 | 33,706 | |
GAB acquisition [Member] | Other Consumer Loans | Receivables Acquired Without Deteriorated Credit Quality [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans | $ 21,731 | $ 33,706 |
LOANS AND ALLOWANCE FOR LOAN_12
LOANS AND ALLOWANCE FOR LOAN LOSSES (Changes in Carrying Amount and Accretable Yield for Purchased Impaired and Nonimpaired Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Loan and Leases Receivable Recorded Investment Schedule [Roll Forward] | ||
Balance at beginning of period | $ 2,062,916 | |
Balance at end of period | 2,178,961 | $ 2,062,916 |
GAB acquisition [Member] | ||
Loan and Leases Receivable Recorded Investment Schedule [Roll Forward] | ||
Balance at beginning of period | 1,025,415 | |
Balance at end of period | 807,208 | 1,025,415 |
Receivables Acquired with Deteriorated Credit Quality [Member] | GAB acquisition [Member] | ||
Loans and Leases Receivable Accretable Yield Movement Schedule [Roll Forward] | ||
Balance at beginning of period | 315 | |
Additions | 398 | |
Accretion | (141) | (83) |
Balance at ending of period | 174 | 315 |
Loan and Leases Receivable Recorded Investment Schedule [Roll Forward] | ||
Balance at beginning of period | 13,614 | 3,417 |
Additions | 11,329 | |
Accretion | 141 | 83 |
Payments received | (2,306) | (1,215) |
Balance at end of period | 11,449 | 13,614 |
Receivables Acquired Without Deteriorated Credit Quality [Member] | GAB acquisition [Member] | ||
Loans and Leases Receivable Accretable Yield Movement Schedule [Roll Forward] | ||
Balance at beginning of period | 17,460 | 6,519 |
Additions | 14,783 | |
Accretion | (4,196) | (4,072) |
Reclassifications from nonaccretable balance | 210 | 230 |
Balance at ending of period | 13,474 | 17,460 |
Loan and Leases Receivable Recorded Investment Schedule [Roll Forward] | ||
Balance at beginning of period | 1,011,801 | 95,376 |
Additions | 1,020,653 | |
Accretion | 4,196 | 4,078 |
Adjustment - transfer to OREO | (43) | |
Payments received | (220,238) | (108,263) |
Balance at end of period | $ 795,759 | $ 1,011,801 |
FAIR VALUE (Narrative) (Details
FAIR VALUE (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts Notes And Loans Receivable [Line Items] | ||||
Impaired loans | $ 12,062 | $ 20,697 | ||
Allowances for loan losses | 12,283 | 9,397 | $ 8,610 | $ 8,421 |
Other real estate owned | 5,077 | 7,577 | ||
Loans guaranteed by SBA | $ 3,400 | $ 5,000 | ||
Minimum [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value of estimated costs related to selling the collateral | 6.00% | 6.00% | ||
Percentage of discount rate on other real estate owned | 5.00% | 5.00% | ||
Maximum [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value of estimated costs related to selling the collateral | 10.00% | 10.00% | ||
Percentage of discount rate on other real estate owned | 7.60% | |||
Fair Value, Inputs, Level 3 [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Non covered other real estate owned | $ 5,100 | |||
Covered other real estate owned | 7,600 | |||
Fair Value, Inputs, Level 3 [Member] | Non-covered Loans [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Impaired loans | 12,100 | $ 20,700 | ||
Allowances for loan losses | 618 | |||
Loans guaranteed by SBA | $ 3,400 | $ 5,000 |
FAIR VALUE (Schedule of assets
FAIR VALUE (Schedule of assets measured at fair value on a recurring basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Available for sale securities | ||
Fair value | $ 143,377 | $ 160,673 |
Fair Value | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities | ||
Fair value | 143,377 | 160,673 |
Fair Value, Measurements, Recurring [Member] | ||
Available for sale securities | ||
Fair value | 143,377 | 160,673 |
Fair Value, Measurements, Recurring [Member] | US Government Agencies Debt Securities [Member] | ||
Available for sale securities | ||
Fair value | 27,302 | 30,864 |
Fair Value, Measurements, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Available for sale securities | ||
Fair value | 18,055 | 18,727 |
Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member] | ||
Available for sale securities | ||
Fair value | 2,008 | 2,015 |
Fair Value, Measurements, Recurring [Member] | Residential Mortgage Backed Securities [Member] | ||
Available for sale securities | ||
Fair value | 43,057 | 50,766 |
Fair Value, Measurements, Recurring [Member] | Government-Sponsored Agency Securities | ||
Available for sale securities | ||
Fair value | 3,125 | 3,226 |
Fair Value, Measurements, Recurring [Member] | Commercial Mortgage Backed Securities [Member] | ||
Available for sale securities | ||
Fair value | 27,304 | 27,898 |
Fair Value, Measurements, Recurring [Member] | SBA Pool Securities [Member] | ||
Available for sale securities | ||
Fair value | 19,885 | 24,789 |
Fair Value, Measurements, Recurring [Member] | Trust preferred securities | ||
Available for sale securities | ||
Fair value | 2,641 | 2,388 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities | ||
Fair value | 142,377 | 160,673 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | US Government Agencies Debt Securities [Member] | ||
Available for sale securities | ||
Fair value | 27,302 | 30,864 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Available for sale securities | ||
Fair value | 18,055 | 18,727 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | ||
Available for sale securities | ||
Fair value | 1,008 | 2,015 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Residential Mortgage Backed Securities [Member] | ||
Available for sale securities | ||
Fair value | 43,057 | 50,766 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Government-Sponsored Agency Securities | ||
Available for sale securities | ||
Fair value | 3,125 | 3,226 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Commercial Mortgage Backed Securities [Member] | ||
Available for sale securities | ||
Fair value | 27,304 | 27,898 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | SBA Pool Securities [Member] | ||
Available for sale securities | ||
Fair value | 19,885 | 24,789 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Trust preferred securities | ||
Available for sale securities | ||
Fair value | 2,641 | $ 2,388 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available for sale securities | ||
Fair value | 1,000 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Corporate Debt Securities [Member] | ||
Available for sale securities | ||
Fair value | $ 1,000 |
FAIR VALUE (Schedule of Asset_2
FAIR VALUE (Schedule of Assets Measured at Fair Value on Non-recurring Basis) (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale | $ 600 | $ 1,927 |
Fair Value, Inputs, Level 3 [Member] | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale | 600 | 1,927 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 2,795 | 767 |
Other real estate owned | 908 | 1,060 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | Fair Value, Inputs, Level 3 [Member] | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 2,795 | 767 |
Other real estate owned | 908 | 1,060 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 171 | 766 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | Fair Value, Inputs, Level 3 [Member] | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 171 | 766 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 9,969 | |
Other real estate owned | 2,938 | |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 9,969 | |
Other real estate owned | 2,938 | |
Commercial Real Estate Portfolio Segment [Member] | 1-4 Family Residential | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 3,229 | |
Commercial Real Estate Portfolio Segment [Member] | 1-4 Family Residential | Fair Value, Inputs, Level 3 [Member] | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 3,229 | |
Commercial Real Estate Portfolio Segment [Member] | Commercial Mortgage Loan | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 6,076 | |
Commercial Real Estate Portfolio Segment [Member] | Commercial Mortgage Loan | Fair Value, Inputs, Level 3 [Member] | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 6,076 | |
Residential Portfolio Segment [Member] | 1-4 Family Residential | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 3,020 | 3,160 |
Other real estate owned | 1,231 | 3,288 |
Residential Portfolio Segment [Member] | 1-4 Family Residential | Fair Value, Inputs, Level 3 [Member] | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 3,020 | 3,160 |
Other real estate owned | $ 1,231 | 3,288 |
Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 6,035 | |
Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | Fair Value, Inputs, Level 3 [Member] | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 6,035 |
FAIR VALUE (Schedule of estimat
FAIR VALUE (Schedule of estimated fair values and fair value hierarchy levels of financial instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financial assets: | ||
Securities available for sale | $ 143,377 | $ 160,673 |
Held To Maturity Securities Fair Value | 89,109 | 97,597 |
Equity Method Investments, Fair Value Disclosure | 3,829 | 4,723 |
Preferred investment in mortgage affiliate | 3,305 | 3,305 |
Fair Value, Inputs, Level 1 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 28,611 | 25,463 |
Financial liabilities: | ||
Demand deposits | 665,640 | 649,067 |
Money market and savings accounts | 506,519 | 517,031 |
Securities sold under agreements to repurchase | 18,721 | 15,468 |
FHLB short tem advances | 163,340 | 335,615 |
Fair Value, Inputs, Level 1 [Member] | Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 28,611 | 25,463 |
Financial liabilities: | ||
Demand deposits | 665,640 | 649,067 |
Money market and savings accounts | 506,519 | 517,031 |
Securities sold under agreements to repurchase | 18,721 | 15,468 |
FHLB short tem advances | 163,340 | 335,615 |
Fair Value, Inputs, Level 2 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Financial assets: | ||
Securities available for sale | 143,377 | 160,673 |
Held To Maturity Securities Fair Value | 92,462 | 98,912 |
Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell, Fair Value Disclosure | 19,522 | 26,775 |
Financial liabilities: | ||
Junior subordinated debt | 9,584 | 9,534 |
Senior subordinated notes | 47,089 | 47,128 |
Fair Value, Inputs, Level 2 [Member] | Fair Value | ||
Financial assets: | ||
Securities available for sale | 143,377 | 160,673 |
Held To Maturity Securities Fair Value | 89,109 | 97,597 |
Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell, Fair Value Disclosure | 19,522 | 26,775 |
Financial liabilities: | ||
Junior subordinated debt | 12,065 | 12,043 |
Senior subordinated notes | 57,173 | 58,163 |
Fair Value, Inputs, Level 3 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Financial assets: | ||
Equity Method Investments, Fair Value Disclosure | 3,829 | 4,723 |
Preferred investment in mortgage affiliate | 3,305 | 3,305 |
Net loans | 2,166,541 | 2,052,931 |
Financial liabilities: | ||
Certificate of deposits | 925,441 | 699,058 |
Fair Value, Inputs, Level 3 [Member] | Fair Value | ||
Financial assets: | ||
Equity Method Investments, Fair Value Disclosure | 3,829 | 4,723 |
Preferred investment in mortgage affiliate | 3,305 | 3,305 |
Net loans | 2,134,021 | 2,058,779 |
Financial liabilities: | ||
Certificate of deposits | 919,175 | 694,368 |
Fair Value Inputs Level 1 and Level 3 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Financial liabilities: | ||
Accrued interest payable | 3,985 | 2,273 |
Fair Value Inputs Level 1 and Level 3 [Member] | Fair Value | ||
Financial liabilities: | ||
Accrued interest payable | 3,985 | 2,273 |
Fair Value Inputs Level 2 and Level 3 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Financial assets: | ||
Accrued interest receivable | 8,745 | 8,073 |
Fair Value Inputs Level 2 and Level 3 [Member] | Fair Value | ||
Financial assets: | ||
Accrued interest receivable | $ 8,745 | $ 8,073 |
BANK PREMISES AND EQUIPMENT (Na
BANK PREMISES AND EQUIPMENT (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Rental expense | $ 2.5 | $ 2.2 | $ 2 |
Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Lease term | 5 years |
BANK PREMISES AND EQUIPMENT (Sc
BANK PREMISES AND EQUIPMENT (Schedule of bank premises and equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross | $ 66,818 | $ 67,368 |
Less accumulated depreciation and amortization | 34,466 | 31,580 |
Bank premises and equipment, net | 32,352 | 35,788 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross | 8,139 | 8,133 |
Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross | 2,027 | 2,027 |
Building and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross | 32,960 | 33,928 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross | 3,221 | 3,217 |
Furniture, Fixtures and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross | 20,338 | 20,022 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross | $ 133 | $ 41 |
BANK PREMISES AND EQUIPMENT (_2
BANK PREMISES AND EQUIPMENT (Schedule of future minimum rental payments required under non-cancelable operating leases for bank premises) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Property, Plant and Equipment [Abstract] | |
2019 | $ 2,628 |
2020 | 2,093 |
2021 | 1,337 |
2022 | 1,269 |
2023 | 1,111 |
Thereafter | 2,201 |
Future minimum rental payments, total | $ 10,639 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 101,954 | $ 100,606 |
Increase in goodwill | $ 1,300 | $ 90,100 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS (Schedule of acquired intangible assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangibles, net carrying value | $ 8,609 | $ 10,054 |
Core Deposits [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangibles, gross carrying value | 17,503 | 17,503 |
Accumulated Amortization | (8,894) | (7,449) |
Amortizable intangibles, net carrying value | $ 8,609 | $ 10,054 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS (Schedule of estimated amortization expense of intangibles) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangibles, net | $ 8,609 | $ 10,054 |
Core Deposits and Servicing Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
2019 | 1,428 | |
2020 | 1,375 | |
2021 | 1,375 | |
2022 | 1,334 | |
2023 | 1,278 | |
Thereafter | 1,934 | |
Intangibles, net | $ 8,724 |
FDIC INDEMNIFICATION ASSET (Nar
FDIC INDEMNIFICATION ASSET (Narrative) (Details) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($)agreement | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 04, 2009USD ($) | |
Indemnity [Line Items] | ||||||
Estimated fair value of the indemnification asset | $ | $ 8,800 | |||||
FDIC indemnification asset carrying amount | $ | $ 649 | $ 649 | $ 649 | $ 1,353 | $ 2,111 | |
Number of agreement with FDIC | 2 | 2 | ||||
Single Family Assets [Member] | ||||||
Indemnity [Line Items] | ||||||
Number of agreement with FDIC | agreement | 1 | |||||
Term of FDIC agreement | 10 years | |||||
Non Single Family Commercial Assets [Member] | ||||||
Indemnity [Line Items] | ||||||
Number of agreement with FDIC | agreement | 1 | |||||
Term of FDIC agreement | 5 years |
FDIC INDEMNIFICATION ASSET (Cha
FDIC INDEMNIFICATION ASSET (Changes in the indemnification asset for the periods) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
FDIC Indemnification Asset [Roll Forward] | ||
Balance as of January 1 | $ 1,353 | $ 2,111 |
Payments from FDIC | (46) | |
Amortization | (704) | (712) |
Balance as of December 31 | $ 649 | $ 1,353 |
DEPOSITS (Narrative) (Details)
DEPOSITS (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deposits [Abstract] | ||
Aggregate amount of time deposits in denominations of $100,000 or more | $ 171 | |
Brokered certificate of deposits | $ 254.6 | 109.8 |
Money market deposits | $ 16.9 | $ 17 |
DEPOSITS (Scheduled maturities
DEPOSITS (Scheduled maturities of time deposits) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Deposits [Abstract] | |
2019 | $ 690,563 |
2020 | 157,071 |
2021 | 44,887 |
2022 | 22,615 |
2023 | 10,305 |
Time deposits, total | $ 925,441 |
DEPOSITS (Scheduled maturitie_2
DEPOSITS (Scheduled maturities of certificates of deposits) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Deposits [Abstract] | |
Within 3 Months | $ 14,374 |
3 to 6 Months | 28,379 |
6 to 12 Months | 91,411 |
Over 12 Months | 56,452 |
Total | $ 190,616 |
SECURITIES SOLD UNDER AGREEME_3
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 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 | $ 18.7 | $ 15.5 | |
Securities sold under agreements to repurchase, fair value of collateral | 28.5 | 24.2 | |
Potential amount that could be collateralized | 513 | ||
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 | ||
Home Equity Loan [Member] | Federal Home Loan Bank Advances [Member] | |||
Federal Home Loan Bank, Advances, Branch Of Fhlb Bank [Line Items] | |||
FHLB advances, pledged as collateral | 54.7 | 82 | |
1-4 Family Residential | Federal Home Loan Bank of Atlanta [Member] | |||
Federal Home Loan Bank, Advances, Branch Of Fhlb Bank [Line Items] | |||
FHLB advances, pledged as collateral | 347.4 | 323.3 | |
Commercial Mortgage Loan | Commercial Portfolio Segment [Member] | Federal Home Loan Bank Advances [Member] | |||
Federal Home Loan Bank, Advances, Branch Of Fhlb Bank [Line Items] | |||
FHLB advances, pledged as collateral | 107.7 | 124.4 | |
Securities Investment [Member] | Federal Home Loan Bank Advances [Member] | |||
Federal Home Loan Bank, Advances, Branch Of Fhlb Bank [Line Items] | |||
FHLB advances, pledged as collateral | $ 25.3 | $ 26 |
SECURITIES SOLD UNDER AGREEME_4
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS (Summary of Other short-term borrowings) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Short-term Debt [Line Items] | |||
Securities sold under agreements to repurchase | $ 18,721 | $ 15,468 | |
Total | $ 182,061 | $ 351,083 | $ 95,000 |
Federal Home Loan Bank Advances [Member] | |||
Short-term Debt [Line Items] | |||
Weighted average interest rate at year end | 2.68% | 1.50% | 0.86% |
Average outstanding balance | $ 324,155 | $ 177,983 | $ 66,864 |
Average interest rate during the year | 1.91% | 1.24% | 0.74% |
Maximum month-end outstanding balance | $ 411,511 | $ 351,083 | $ 95,000 |
Other short-term FHLB advances maturing 6/27/2018 [Member] | Federal Home Loan Bank Advances [Member] | |||
Short-term Debt [Line Items] | |||
Amount of advances, FHLB | 10,000 | ||
Due date, FHLB | Jun. 27, 2018 | ||
Other short-term FHLB advances maturing 6/20/2018 [Member] | Federal Home Loan Bank Advances [Member] | |||
Short-term Debt [Line Items] | |||
Amount of advances, FHLB | 27,200 | ||
Due date, FHLB | Jun. 20, 2018 | ||
Other short-term FHLB advances maturing 6/14/2018 [Member] | Federal Home Loan Bank Advances [Member] | |||
Short-term Debt [Line Items] | |||
Amount of advances, FHLB | 10,000 | ||
Due date, FHLB | Jun. 14, 2018 | ||
Other short-term FHLB advances maturing 6/13/2018 [Member] | Federal Home Loan Bank Advances [Member] | |||
Short-term Debt [Line Items] | |||
Amount of advances, FHLB | 80,640 | ||
Due date, FHLB | Jun. 13, 2018 | ||
Other short-term FHLB advances maturing 6/12/2018 [Member] | Federal Home Loan Bank Advances [Member] | |||
Short-term Debt [Line Items] | |||
Amount of advances, FHLB | 10,000 | ||
Due date, FHLB | Jun. 12, 2018 | ||
Other short-term FHLB advances maturing 3/28/2018 [Member] | Federal Home Loan Bank Advances [Member] | |||
Short-term Debt [Line Items] | |||
Amount of advances, FHLB | 30,000 | ||
Due date, FHLB | Mar. 28, 2018 | ||
Other short-term FHLB advances maturing 3/14/2018 [Member] | Federal Home Loan Bank Advances [Member] | |||
Short-term Debt [Line Items] | |||
Amount of advances, FHLB | 80,640 | ||
Due date, FHLB | Mar. 14, 2018 | ||
Other short-term FHLB advances maturing 3/13/2018 [Member] | Federal Home Loan Bank Advances [Member] | |||
Short-term Debt [Line Items] | |||
Amount of advances, FHLB | 30,275 | ||
Due date, FHLB | Mar. 13, 2018 | ||
Other short-term FHLB advances maturing 3/27/2017 [Member] | Federal Home Loan Bank Advances [Member] | |||
Short-term Debt [Line Items] | |||
Amount of advances, FHLB | 10,000 | ||
Due date, FHLB | Mar. 27, 2017 | ||
Other short-term FHLB advances maturing 5/4/2017 [Member] | Federal Home Loan Bank Advances [Member] | |||
Short-term Debt [Line Items] | |||
Amount of advances, FHLB | 10,000 | ||
Due date, FHLB | May 4, 2017 | ||
Other short-term FHLB advances maturing 6/5/2017 [Member] | Federal Home Loan Bank Advances [Member] | |||
Short-term Debt [Line Items] | |||
Amount of advances, FHLB | 10,000 | ||
Due date, FHLB | Jun. 5, 2017 | ||
Other short-term FHLB advances maturing 6/19/2017 [Member] | Federal Home Loan Bank Advances [Member] | |||
Short-term Debt [Line Items] | |||
Amount of advances, FHLB | 5,000 | ||
Due date, FHLB | Jun. 19, 2017 | ||
Other short-term FHLB advances maturing 12/15/2017 [Member] | Federal Home Loan Bank Advances [Member] | |||
Short-term Debt [Line Items] | |||
Amount of advances, FHLB | 10,000 | ||
Due date, FHLB | Dec. 15, 2017 | ||
Other short-term FHLB advances maturing 6/27/2019 [Member] | |||
Short-term Debt [Line Items] | |||
Amount of advances, FHLB | $ 40,000 | ||
Due date, FHLB | Jun. 27, 2019 | ||
Other short-term FHLB advances maturing 6/18/2019 [Member] | |||
Short-term Debt [Line Items] | |||
Amount of advances, FHLB | $ 27,200 | ||
Due date, FHLB | Jun. 18, 2019 | ||
Other short-term FHLB advances maturing 6/12/2019 [Member] | |||
Short-term Debt [Line Items] | |||
Amount of advances, FHLB | $ 10,000 | ||
Due date, FHLB | Jun. 12, 2019 | ||
Other short-term FHLB advances maturing 6/11/2019 [Member] | |||
Short-term Debt [Line Items] | |||
Amount of advances, FHLB | $ 80,640 | ||
Due date, FHLB | Jun. 11, 2019 | ||
Overnight [member] | Federal Home Loan Bank Advances [Member] | |||
Short-term Debt [Line Items] | |||
Amount of advances, FHLB | $ 5,500 | $ 56,860 | $ 50,000 |
JUNIOR SUBORDINATED DEBT AND _2
JUNIOR SUBORDINATED DEBT AND SENIOR SUBORDINATED NOTES (Narrative) (Details) - USD ($) $ in Thousands | Jan. 20, 2017 | Apr. 22, 2015 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 23, 2017 | Sep. 17, 2003 |
Senior Subordinated Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from subordinated notes | $ 27,000 | |||||
Interest rate percentage | 5.875% | |||||
Description of variable rate basis | three-month LIBOR | |||||
Basis spread on LIBOR | 3.95% | |||||
Unamortized debt issuance costs | $ 760 | |||||
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 | |||||
Trust preferred securities pooled underwriting amount | $ 650,000 | |||||
Eastern Virginia Bankshares Inc [Member] | Junior Subordinated Debt [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate percentage | 5.73% | 4.55% | ||||
Description of variable rate basis | 3-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% | |||||
Basis spread on LIBOR | 5.02% | |||||
Percentage of aggregate principle amount | 100.00% | |||||
Scenario, Adjustment [Member] | Eastern Virginia Bankshares Inc [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Junior subordinated debt | (801) | |||||
Senior subordinated notes | $ 1,876 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
INCOME TAXES [Abstract] | ||||
Deferred tax assets, valuation allowance | $ 0 | $ 0 | $ 0 | |
Unrecognized tax benefits | $ 0 | 0 | ||
Unrecognized tax benefits, income tax penalties and interest expense | $ 0 | $ 0 | $ 0 | |
U.S. Federal income tax rate | 21.00% | 21.00% | 34.00% | 34.00% |
Income Tax Examination, Description | Southern National and its subsidiaries file a consolidated U.S. federal income tax return, and Southern National files a Virginia state income tax return. Sonabank files a Maryland state income tax return. These returns are subject to examination by taxing authorities for all years after 2014. | |||
Provisional tax adjustment related to reduction in U.S. federal statutory income tax rate | $ 7,211,000 |
INCOME TAXES (Schedule of net d
INCOME TAXES (Schedule of net deferred tax assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Allowance for loan losses | $ 2,686 | $ 2,100 |
Organization costs | 42 | 78 |
Unearned loan fees and other | 1,058 | 987 |
Other real estate owned write-downs | 783 | 794 |
Other than temporary impairment charge | 232 | 235 |
Net unrealized loss on investment securities available for sale | 694 | 367 |
Purchase accounting | 1,909 | 3,411 |
Federal net operating loss carryforward | 762 | 4,845 |
Federal AMT credit carryforward | 1,137 | 1,137 |
Federal low income housing credit carryforward | 2,887 | 2,386 |
Deferred compensation | 1,390 | 1,114 |
Other | 687 | 712 |
Total deferred tax assets | 14,267 | 18,166 |
Deferred tax liabilities: | ||
FDIC indemnification asset | 140 | 300 |
Depreciation | 23 | 963 |
Total deferred tax liabilities | 163 | 1,263 |
Net deferred tax assets | $ 14,104 | $ 16,903 |
INCOME TAXES (Schedule of provi
INCOME TAXES (Schedule of provision for income taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current tax expense | |||
Federal | $ 6,244 | $ 3,145 | $ 4,781 |
State | 249 | 316 | 285 |
Total current tax expense | 6,493 | 3,461 | 5,066 |
Deferred tax benefit | |||
Federal | 2,692 | 10,234 | 28 |
State | 429 | (548) | 1 |
Total deferred tax expense | 3,121 | 9,686 | 29 |
Total income tax expense | $ 9,614 | $ 13,147 | $ 5,095 |
INCOME TAXES (Schedule of incom
INCOME TAXES (Schedule of income tax expense determined by applying the U.S. Federal income tax rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
INCOME TAXES [Abstract] | |||
Computed expected tax expense at statutory rate | $ 9,094 | $ 5,294 | $ 5,238 |
Increase (decrease) in tax expense resulting from: | |||
Deferred tax impairment | 1,130 | ||
Low income housing tax credits | (502) | ||
Income from bank-owned life insurance | (416) | (316) | (238) |
Other, net | 308 | 234 | 95 |
Transaction costs | 724 | ||
Provisional tax adjustment related to reduction in U.S. federal statutory income tax rate | 7,211 | ||
Total income tax expense | $ 9,614 | $ 13,147 | $ 5,095 |
EMPLOYEE BENEFITS (Narrative) (
EMPLOYEE BENEFITS (Narrative) (Details) $ in Thousands | Jun. 23, 2017item | Dec. 31, 2018USD ($)agreement | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Employer discretionary matching contributions in 401(k) plan | $ 784 | $ 433 | $ 132 | |
Eastern Virginia Bankshares Inc [Member] | EVBS Supplemental Executive Retirement Plan | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Number of plan participants | item | 2 | |||
Participant one - benefit payment period | 15 years | |||
Participant two - benefit payment period | 200 months | |||
Executive Officer [Member] | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Number of officers | agreement | 2 | |||
Term of deferred compensation arrangement | 10 years | |||
Deferred compensation expense | $ 1,200 | 415 | $ 495 | |
Deferred compensation liability | $ 6,100 | $ 5,000 |
STOCK- BASED COMPENSATION (Narr
STOCK- BASED COMPENSATION (Narrative) (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2017$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)shares | Jun. 21, 2017shares | Jan. 31, 2010shares | Dec. 31, 2004shares | |
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 | ||||||
Employee Stock Option [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation expense | $ | $ 122 | $ 237 | $ 260 | ||||
Unrecognized compensation expense associated with the stock options | $ | $ 92 | ||||||
Unrecognized compensation cost weighted average recognition period | 1 year 7 months 6 days | ||||||
Employee Stock Option [Member] | 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 | ||||||
Granted | 136,000 | ||||||
Employee Stock Option [Member] | 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 | ||||||
Restricted Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation expense associated with the other than options | $ | $ 793 | ||||||
Unrecognized compensation cost weighted average recognition period | 4 years 3 months 18 days | ||||||
Restricted Stock [Member] | Stock Option Plan 2017 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation expense | $ | $ 158 | ||||||
Granted, other than options | 2,800 | 62,500 | |||||
Forfeited, other than options | 4,700 | ||||||
Granted, exercise price, other than options | $ / shares | $ 15.78 | $ 15.62 | |||||
Equity instrument, vesting period | 5 years | ||||||
Restricted Stock [Member] | Stock Option Plan 2017 [Member] | 3rd Qtr of 2017 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Equity instrument, vesting period | 2 years | ||||||
Eastern Virginia Bankshares Inc [Member] | Employee Stock Option [Member] | Stock Option Plan 2017 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options issued in connection with EVBS merger | 22,559 | ||||||
Exchange ratio | 0.6313 |
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 | 12 Months Ended |
Dec. 31, 2018USD ($)$ / sharesshares | |
Shares | |
Options outstanding, beginning of period | shares | 714,967 |
Forfeited | shares | (14,617) |
Exercised | shares | (58,000) |
Options outstanding, end of period | shares | 642,350 |
Exercisable at end of period | shares | 498,900 |
Weighted Average Exercise Price | |
Options outstanding, beginning of period | $ / shares | $ 9.83 |
Forfeited | $ / shares | 15.24 |
Exercised | $ / shares | 7.62 |
Options outstanding, end of period | $ / shares | 9.77 |
Exercisable at end of period | $ / shares | $ 8.96 |
Weighted Average Remaining Contractual Term | |
Options outstanding, end of period | 5 years |
Exercisable at end of period | 4 years 3 months 18 days |
Options outstanding, end of period - Aggregate Intrinsic Value | $ | $ 2,219 |
Exercisable at end of period - Aggregate Intrinsic Value | $ | $ 1,988 |
FINANCIAL INSTRUMENTS WITH OF_2
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Financial Instruments With Off Balance Sheet Risk [Abstract] | ||
Letters of credit outstanding | $ 19.2 | $ 15.2 |
Unfunded lines of credit and undisbursed construction loan funds | $ 339.2 | $ 361.7 |
EARNINGS PER SHARE (Narrative)
EARNINGS PER SHARE (Narrative) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stock Options and Warrants [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive options and warrants (in shares) | 0 | 8,517 | 0 |
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 | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Basic EPS - Income (Numerator) (in dollars) | $ 33,691 | $ 2,425 | $ 10,312 | ||||||||
Effect of dilutive stock options and warrants - Income (Numerator) (in dollars) | |||||||||||
Net Income (Loss) Available to Common Stockholders, Diluted, Total | $ 33,691 | $ 2,425 | $ 10,312 | ||||||||
Basic EPS- Weighted Average Shares (Denominator) (in shares) | 24,012 | 18,391 | 12,252 | ||||||||
Effect of dilutive stock options and warrants- Weighted Average Shares (Denominator) (in shares) | 261 | 281 | 175 | ||||||||
Diluted EPS- Weighted Average Shares (Denominator) (in shares) | 24,273 | 18,672 | 12,427 | ||||||||
Basic EPS - Per Share Amount (in dollars per share) | $ 0.32 | $ 0.37 | $ 0.37 | $ 0.34 | $ (0.05) | $ 0.18 | $ (0.21) | $ 0.17 | $ 1.40 | $ 0.13 | $ 0.84 |
Effect of dilutive stock options and warrants- Per Share Amount (in dollars per share) | (0.01) | (0.01) | |||||||||
Diluted EPS- Per Share Amount (in dollars per share) | $ 0.32 | $ 0.36 | $ 0.37 | $ 0.34 | $ (0.05) | $ 0.18 | $ (0.21) | $ 0.16 | $ 1.39 | $ 0.13 | $ 0.83 |
REGULATORY MATTERS (Schedule of
REGULATORY MATTERS (Schedule of capital amounts and ratios for southern national and sonabank) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Southern National | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common equity tier 1 capital ratio, Actual Amount | $ 239,554 | $ 211,399 |
Common equity tier 1 capital ratio, Actual Ratio | 11.57% | 10.53% |
Common equity tier 1 capital ratio required for capital adequacy purposes amount | $ 93,135 | $ 90,300 |
Common equity tier 1 capital ratio required for capital adequacy purposes ratio | 4.50% | 4.50% |
Tier 1 risk-based capital ratio, Actual Amount | $ 249,554 | $ 220,430 |
Tier 1 risk-based capital ratio, Actual Ratio | 12.06% | 10.98% |
Tier 1 risk-based capital ratio, Actual Ratio Required For Capital Adequacy Purposes, Amount | $ 124,180 | $ 120,399 |
Tier 1 risk-based capital ratio, Actual Ratio Required For Capital Adequacy Purposes, Ratio | 6.00% | 6.00% |
Total risk-based capital ratio, Actual Amount | $ 308,838 | $ 276,827 |
Total risk-based capital ratio, Actual Ratio | 14.92% | 13.80% |
Total risk-based capital ratio, Actual Ratio Required For Capital Adequacy Purposes, Amount | $ 165,573 | $ 160,533 |
Total risk-based capital ratio, Actual Ratio Required For Capital Adequacy Purposes, Ratio | 8.00% | 8.00% |
Leverage ratio, Actual Amount | $ 249,554 | $ 220,430 |
Leverage ratio, Actual Ratio | 9.57% | 8.82% |
Leverage ratio, Actual Ratio Required For Capital Adequacy Purposes, Amount | $ 104,338 | $ 100,022 |
Leverage ratio, Actual Ratio Required For Capital Adequacy Purposes, Ratio | 4.00% | 4.00% |
Sonabank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common equity tier 1 capital ratio, Actual Amount | $ 288,018 | $ 256,615 |
Common equity tier 1 capital ratio, Actual Ratio | 13.64% | 12.79% |
Common equity tier 1 capital ratio required for capital adequacy purposes amount | $ 95,020 | $ 90,282 |
Common equity tier 1 capital ratio required for capital adequacy purposes ratio | 4.50% | 4.50% |
Common equity tier 1 capital ratio, To Be Categorized as Well Capitalized Amount | $ 137,251 | $ 130,407 |
Common equity tier 1 capital ratio, To Be Categorized as Well Capitalized Ratio | 6.50% | 6.50% |
Tier 1 risk-based capital ratio, Actual Amount | $ 288,018 | $ 256,615 |
Tier 1 risk-based capital ratio, Actual Ratio | 13.64% | 12.79% |
Tier 1 risk-based capital ratio, Actual Ratio Required For Capital Adequacy Purposes, Amount | $ 126,693 | $ 120,375 |
Tier 1 risk-based capital ratio, Actual Ratio Required For Capital Adequacy Purposes, Ratio | 6.00% | 6.00% |
Tier 1 risk-based capital ratio, To Be Categorized as Well Capitalized, Amount | $ 168,924 | $ 160,500 |
Tier 1 risk-based capital ratio, To Be Categorized as Well Capitalized, Ratio | 8.00% | 8.00% |
Total risk-based capital ratio, Actual Amount | $ 300,301 | $ 266,012 |
Total risk-based capital ratio, Actual Ratio | 14.22% | 13.26% |
Total risk-based capital ratio, Actual Ratio Required For Capital Adequacy Purposes, Amount | $ 168,924 | $ 160,500 |
Total risk-based capital ratio, Actual Ratio Required For Capital Adequacy Purposes, Ratio | 8.00% | 8.00% |
Total risk-based capital ratio, To Be Categorized as Well Capitalized, Amount | $ 211,156 | $ 200,626 |
Total risk-based capital ratio, To Be Categorized as Well Capitalized, Ratio | 10.00% | 10.00% |
Leverage ratio, Actual Amount | $ 288,018 | $ 256,615 |
Leverage ratio, Actual Ratio | 11.03% | 10.26% |
Leverage ratio, Actual Ratio Required For Capital Adequacy Purposes, Amount | $ 104,420 | $ 100,040 |
Leverage ratio, Actual Ratio Required For Capital Adequacy Purposes, Ratio | 4.00% | 4.00% |
Leverage ratio, To Be Categorized as Well Capitalized, Amount | $ 105,578 | $ 125,051 |
Leverage ratio, To Be Categorized as Well Capitalized, Ratio | 5.00% | 5.00% |
PARENT COMPANY FINANCIAL INFO_3
PARENT COMPANY FINANCIAL INFORMATION (Schedule of condensed balance sheet of Southern National Bancorp of Virginia, Inc.) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||||
Cash | $ 28,611 | $ 25,463 | ||
Other assets | 19,057 | 19,752 | ||
Total assets | 2,701,295 | 2,614,252 | ||
Liabilities [Abstract] | ||||
Junior subordinated debt - long term | 9,584 | 9,534 | ||
Senior subordinated notes-long term | 47,089 | 47,128 | ||
Other liabilities | 16,671 | 18,579 | ||
Total liabilities | 2,353,005 | 2,291,480 | ||
Stockholders' equity: | ||||
Common stock | 240 | 239 | ||
Additional paid in capital | 305,654 | 304,932 | ||
Retained earnings | 44,985 | 18,753 | ||
Accumulated other comprehensive loss | (2,589) | (1,152) | ||
Total stockholders' equity | 348,290 | 322,772 | $ 126,344 | $ 119,636 |
Total liabilities and stockholders' equity | 2,701,295 | 2,614,252 | ||
Southern National | ||||
ASSETS | ||||
Cash | 1,393 | 4,535 | ||
Investment in subsidiary | 397,063 | 369,266 | ||
Other assets | 7,174 | 6,405 | ||
Total assets | 405,630 | 380,206 | ||
Liabilities [Abstract] | ||||
Junior subordinated debt - long term | 9,584 | 9,534 | ||
Senior subordinated notes-long term | 47,089 | 47,128 | ||
Other liabilities | 667 | 772 | ||
Total liabilities | 57,340 | 57,434 | ||
Stockholders' equity: | ||||
Common stock | 240 | 239 | ||
Additional paid in capital | 305,654 | 304,932 | ||
Retained earnings | 44,985 | 18,753 | ||
Accumulated other comprehensive loss | (2,589) | (1,152) | ||
Total stockholders' equity | 348,290 | 322,772 | ||
Total liabilities and stockholders' equity | $ 405,630 | $ 380,206 |
PARENT COMPANY FINANCIAL INFO_4
PARENT COMPANY FINANCIAL INFORMATION (Schedule of condensed statements of income of Southern National Bancorp of Virginia, Inc.) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total interest and dividend income | $ 31,150 | $ 30,054 | $ 29,683 | $ 28,020 | $ 27,965 | $ 28,811 | $ 14,249 | $ 12,545 | $ 118,907 | $ 83,570 | $ 48,947 |
Interest on junior subordinated debt | 575 | 253 | |||||||||
Interest on senior subordinated notes | 2,847 | 2,194 | |||||||||
Merger expenses | 9,426 | 429 | |||||||||
Other operating expenses | 7,238 | 5,991 | 2,976 | ||||||||
Income before income taxes | 10,824 | 11,061 | 11,060 | 10,360 | 9,692 | 6,463 | (3,804) | 3,221 | 43,305 | 15,572 | 15,407 |
Income tax benefit | (9,614) | (13,147) | (5,095) | ||||||||
Net income | $ 7,704 | $ 8,861 | $ 8,867 | $ 8,259 | $ (1,161) | $ 4,374 | $ (2,842) | $ 2,054 | 33,691 | 2,425 | 10,312 |
Southern National | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Cash dividends received from Sonabank | 8,000 | 4,900 | 3,600 | ||||||||
Interest on deposits with subsidiary | 3 | ||||||||||
Total interest and dividend income | 8,000 | 4,903 | 3,600 | ||||||||
Interest on junior subordinated debt | 575 | 253 | |||||||||
Interest on senior subordinated notes | 2,847 | 2,194 | |||||||||
Merger expenses | 2,812 | ||||||||||
Other operating expenses | 765 | 478 | 153 | ||||||||
Total expense | 4,187 | 5,737 | 153 | ||||||||
Income before income taxes | 3,813 | (834) | 3,447 | ||||||||
Income tax benefit | (872) | (1,196) | (52) | ||||||||
Equity in undistributed net income of Sonabank | 29,006 | 2,063 | 6,813 | ||||||||
Net income | $ 33,691 | $ 2,425 | $ 10,312 |
PARENT COMPANY FINANCIAL INFO_5
PARENT COMPANY FINANCIAL INFORMATION (Schedule of condensed statements of cash flows information of Southern National Bancorp of Virginia, Inc.) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities: | |||
Net income | $ 33,691 | $ 2,425 | $ 10,312 |
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities: | |||
Other, net | (213) | (6,069) | (2,924) |
Net cash and cash equivalents provided by operating activities | 41,440 | 24,587 | 18,023 |
Investing activities: | |||
Net cash and cash equivalents provided by investing activities | (93,696) | (62,006) | (95,589) |
Financing activities: | |||
Issuance of subordinated notes, net of cost | 26,075 | ||
Issuance of common stock | 443 | 555 | 135 |
Dividend payment on common stock | (7,688) | (5,798) | (3,921) |
Net cash and cash equivalents provided by (used in) financing activities | 55,404 | 15,490 | 94,622 |
Increase (decrease) in cash and cash equivalents | 3,148 | (21,929) | 17,056 |
Cash and cash equivalents at beginning of period | 25,463 | 47,392 | 30,336 |
Cash and cash equivalents at end of period | 28,611 | 25,463 | 47,392 |
Southern National | |||
Operating activities: | |||
Net income | 33,691 | 2,425 | 10,312 |
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities: | |||
Equity in undistributed net income of subsidiary | (37,006) | (6,963) | (10,413) |
Other, net | (582) | 4,046 | 219 |
Net cash and cash equivalents provided by operating activities | (3,897) | (492) | 118 |
Investing activities: | |||
Increase in investment in subsidiary | (22,000) | ||
Dividend from subsidiary | 8,000 | 4,900 | 3,600 |
Acquisition of Eastern Virginia Bankshares, Inc. | (10) | ||
Net cash and cash equivalents provided by investing activities | 8,000 | (17,110) | 3,600 |
Financing activities: | |||
Issuance of subordinated notes, net of cost | 26,075 | ||
Issuance of common stock | 443 | 1,004 | 236 |
Dividend payment on common stock | (7,688) | (5,798) | (3,921) |
Net cash and cash equivalents provided by (used in) financing activities | (7,245) | 21,281 | (3,685) |
Increase (decrease) in cash and cash equivalents | (3,142) | 3,679 | 33 |
Cash and cash equivalents at beginning of period | 4,535 | 856 | 823 |
Cash and cash equivalents at end of period | $ 1,393 | $ 4,535 | $ 856 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Schedule of the accumulated other comprehensive loss balances, net of tax) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance | $ 322,772 | $ 126,344 | $ 119,636 |
Current Period Change | (1,208) | (363) | (179) |
Balance | 348,290 | 322,772 | 126,344 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance | (1,152) | (789) | (610) |
Current Period Change | (1,437) | (363) | (179) |
Balance | (2,589) | (1,152) | $ (789) |
Unrealized gains (losses) on securities available for sale | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance | (999) | ||
Current Period Change | (1,420) | ||
Balance | (2,419) | (999) | |
Accumulated Other Than Temporary Impairment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance | 311 | ||
Balance | 311 | 311 | |
Accumulated Unrealized Loss On Securities Available For Sale Transferred To Held To Maturity [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance | (464) | ||
Current Period Change | (17) | ||
Balance | $ (481) | $ (464) |
RELATED PARTY TRANSACTIONS (Nar
RELATED PARTY TRANSACTIONS (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | ||
Related party deposit liabilities | $ 12.8 | $ 15.6 |
Southern Trust Mortgage [Member] | ||
Related Party Transaction [Line Items] | ||
Related party transaction, purchases from related party | $ 125.1 | $ 102.1 |
RELATED PARTY TRANSACTIONS (Sch
RELATED PARTY TRANSACTIONS (Schedule of changes in the loan amount outstanding during the periods) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Southern Trust Mortgage [Member] | ||
Loans and Leases Receivable, Related Parties [Roll Forward] | ||
Loans outstanding at January 1 | $ 25,767 | $ 8,126 |
Principal advances | 296,627 | 238,503 |
Acquired from EVBS | 13,044 | |
Principal paid | (298,226) | (233,906) |
Balance at December 31 | 24,168 | 25,767 |
Officers and Directors and Principal Shareholders and Their Affiliates [Member]. | ||
Loans and Leases Receivable, Related Parties [Roll Forward] | ||
Loans outstanding at January 1 | 24,850 | |
Principal advances | 667 | |
Principal paid | (1,557) | |
Balance at December 31 | $ 23,960 | $ 24,850 |
QUARTERLY FINANCIAL DATA (UNA_3
QUARTERLY FINANCIAL DATA (UNAUDITED) (Schedule of income statement information (unaudited)) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest Income | $ 31,150 | $ 30,054 | $ 29,683 | $ 28,020 | $ 27,965 | $ 28,811 | $ 14,249 | $ 12,545 | $ 118,907 | $ 83,570 | $ 48,947 |
Net Interest Income | 22,804 | 22,588 | 23,174 | 22,500 | 22,971 | 23,850 | 11,205 | 9,891 | 91,066 | 67,917 | 40,314 |
Income Before Taxes | 10,824 | 11,061 | 11,060 | 10,360 | 9,692 | 6,463 | (3,804) | 3,221 | 43,305 | 15,572 | 15,407 |
Net income | $ 7,704 | $ 8,861 | $ 8,867 | $ 8,259 | $ (1,161) | $ 4,374 | $ (2,842) | $ 2,054 | $ 33,691 | $ 2,425 | $ 10,312 |
Earnings per share, basic (in dollars per share) | $ 0.32 | $ 0.37 | $ 0.37 | $ 0.34 | $ (0.05) | $ 0.18 | $ (0.21) | $ 0.17 | $ 1.40 | $ 0.13 | $ 0.84 |
Earnings Per Share, Diluted (in dollars per share) | $ 0.32 | $ 0.36 | $ 0.37 | $ 0.34 | $ (0.05) | $ 0.18 | $ (0.21) | $ 0.16 | $ 1.39 | $ 0.13 | $ 0.83 |
LOW INCOME HOUSING TAX CREDITS
LOW INCOME HOUSING TAX CREDITS (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Tax credits and other tax benefits recognized related to investments | $ 285,000 | $ 227 |
Total projected tax credits to be received | 469,000 | |
Other liabilities | 16,671,000 | 18,579,000 |
Investments [Member] | ||
Other liabilities | 4,100,000 | 949,000 |
Other Assets [Member] | ||
Investments in equity | $ 2,700,000 | $ 1,900,000 |