Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 02, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Bridgewater Bancshares Inc | |
Entity Central Index Key | 0001341317 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 28,822,284 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and Cash Equivalents | $ 66,389 | $ 28,444 |
Bank-Owned Certificates of Deposit | 2,699 | 3,305 |
Securities Available for Sale, at Fair Value | 241,925 | 253,378 |
Loans, Net of Allowance for Loan Losses of $21,362 at June 30, 2019 (unaudited) and $20,031 at December 31, 2018 | 1,758,384 | 1,640,385 |
Federal Home Loan Bank (FHLB) Stock, at Cost | 8,064 | 7,614 |
Premises and Equipment, Net | 18,623 | 13,074 |
Foreclosed Assets | 1,033 | |
Accrued Interest | 7,583 | 6,589 |
Goodwill | 2,626 | 2,626 |
Other Intangible Assets, Net | 956 | 1,052 |
Other Assets | 15,349 | 17,274 |
Total Assets | 2,123,631 | 1,973,741 |
Deposits: | ||
Noninterest Bearing | 409,198 | 369,203 |
Interest Bearing | 1,290,067 | 1,191,731 |
Total Deposits | 1,699,265 | 1,560,934 |
Federal Funds Purchased | 18,000 | |
Notes Payable | 14,000 | 15,000 |
FHLB Advances | 142,500 | 124,000 |
Subordinated Debentures, Net of Issuance Costs | 24,681 | 24,630 |
Accrued Interest Payable | 2,109 | 1,806 |
Other Liabilities | 11,939 | 8,373 |
Total Liabilities | 1,894,494 | 1,752,743 |
SHAREHOLDERS' EQUITY | ||
Preferred Stock- $0.01 par value Authorized 10,000,000; None Issued and Outstanding at June 30, 2019 (unaudited) and December 31, 2018 | ||
Additional Paid-In Capital | 113,838 | 126,031 |
Retained Earnings | 111,261 | 96,234 |
Accumulated Other Comprehensive Income (Loss) | 3,748 | (1,568) |
Total Shareholders' Equity | 229,137 | 220,998 |
Total Liabilities and Equity | 2,123,631 | 1,973,741 |
Voting Common Stock | ||
SHAREHOLDERS' EQUITY | ||
Common Stock- $0.01 par value | $ 290 | $ 301 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Allowance of loan loss | $ 21,362 | $ 20,031 |
Preferred shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Voting Common Stock | ||
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 28,986,729 | 30,097,274 |
Common stock, shares outstanding (in shares) | 28,986,729 | 30,097,274 |
Nonvoting Common Stock | ||
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | 0 | 0 |
Common stock, shares outstanding (in shares) | 0 | 0 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
INTEREST INCOME | ||||
Loans, Including Fees | $ 23,321 | $ 18,800 | $ 45,500 | $ 35,848 |
Investment Securities | 1,928 | 1,473 | 3,829 | 3,040 |
Other | 271 | 119 | 458 | 214 |
Total Interest Income | 25,520 | 20,392 | 49,787 | 39,102 |
INTEREST EXPENSE | ||||
Deposits | 6,020 | 3,522 | 11,723 | 6,531 |
Notes Payable | 130 | 146 | 251 | 298 |
FHLB Advances | 827 | 372 | 1,602 | 671 |
Subordinated Debentures | 393 | 397 | 770 | 766 |
Federal Funds Purchased | 12 | 56 | 172 | 174 |
Total Interest Expense | 7,382 | 4,493 | 14,518 | 8,440 |
NET INTEREST INCOME | 18,138 | 15,899 | 35,269 | 30,662 |
Provision for Loan Losses | 600 | 900 | 1,200 | 1,500 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 17,538 | 14,999 | 34,069 | 29,162 |
NONINTEREST INCOME | ||||
Customer Service Fees | 189 | 185 | 380 | 355 |
Net Gain (Loss) on Sales of Available for Sale Securities | 463 | (59) | 458 | (59) |
Net Loss on Sales of Foreclosed Assets | (141) | (137) | ||
Other Income | 482 | 500 | 930 | 713 |
Total Noninterest Income | 1,134 | 485 | 1,768 | 872 |
NONINTEREST EXPENSE | ||||
Salaries and Employee Benefits | 5,124 | 4,306 | 9,926 | 8,624 |
Occupancy and Equipment | 785 | 597 | 1,441 | 1,171 |
Other Expense | 3,565 | 1,561 | 5,992 | 3,201 |
Total Noninterest Expense | 9,474 | 6,464 | 17,359 | 12,996 |
INCOME BEFORE INCOME TAXES | 9,198 | 9,020 | 18,478 | 17,038 |
Provision for Income Taxes | 1,189 | 2,274 | 3,451 | 4,342 |
NET INCOME | $ 8,009 | $ 6,746 | $ 15,027 | $ 12,696 |
EARNINGS PER SHARE | ||||
Basic (in dollars per share) | $ 0.27 | $ 0.22 | $ 0.50 | $ 0.45 |
Diluted (in dollars per share) | $ 0.26 | $ 0.22 | $ 0.49 | $ 0.45 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Consolidated Statements of Comprehensive Income | ||||
Net Income | $ 8,009 | $ 6,746 | $ 15,027 | $ 12,696 |
Other Comprehensive Income (Loss): | ||||
Unrealized Gains (Losses) on Available for Sale Securities | 3,586 | (151) | 8,203 | (4,298) |
Unrealized Gains (Losses) on Cash Flow Hedge | (927) | 31 | (1,018) | 150 |
Reclassification Adjustment for (Gains) Losses Realized in Income | (463) | 59 | (458) | 59 |
Income Tax Impact | (461) | 13 | (1,411) | 912 |
Total Other Comprehensive Income (Loss), Net of Tax | 1,735 | (48) | 5,316 | (3,177) |
Comprehensive Income | $ 9,744 | $ 6,698 | $ 20,343 | $ 9,519 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Common StockVoting Common Stock | Common StockNonvoting Common Stock | Additional Paid In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at the beginning at Dec. 31, 2017 | $ 208 | $ 38 | $ 66,324 | $ 69,508 | $ 1,084 | $ 137,162 |
Balance at the beginning (in shares) at Dec. 31, 2017 | 20,834,001 | 3,845,860 | ||||
Stock-based Compensation | 389 | 389 | ||||
Comprehensive Income (Loss) | 12,696 | (3,177) | 9,519 | |||
Issuance of Common Stock, Net of Issuance Costs | $ 54 | 58,803 | 58,857 | |||
Issuance of Common Stock, Net of Issuance Costs (in shares) | 5,379,513 | |||||
Conversion of Non-voting Stock to Voting Stock | $ 10 | $ (10) | ||||
Conversion of Non-voting Stock to Voting Stock (in shares) | 1,022,318 | (1,022,318) | ||||
Reclassification of the Income Tax Effects of the Tax Cuts and Jobs Act to Retained Earnings | (194) | 194 | ||||
Balance at the end at Jun. 30, 2018 | $ 272 | $ 28 | 125,516 | 82,010 | (1,899) | 205,927 |
Balance at the end (in shares) at Jun. 30, 2018 | 27,235,832 | 2,823,542 | ||||
Balance at the beginning at Mar. 31, 2018 | $ 272 | $ 28 | 125,326 | 75,264 | (1,851) | 199,039 |
Balance at the beginning (in shares) at Mar. 31, 2018 | 27,235,832 | 2,823,542 | ||||
Stock-based Compensation | 190 | 190 | ||||
Comprehensive Income (Loss) | 6,746 | (48) | 6,698 | |||
Balance at the end at Jun. 30, 2018 | $ 272 | $ 28 | 125,516 | 82,010 | (1,899) | 205,927 |
Balance at the end (in shares) at Jun. 30, 2018 | 27,235,832 | 2,823,542 | ||||
Balance at the beginning at Dec. 31, 2018 | $ 301 | 126,031 | 96,234 | (1,568) | 220,998 | |
Balance at the beginning (in shares) at Dec. 31, 2018 | 30,097,274 | |||||
Stock-based Compensation | 348 | 348 | ||||
Comprehensive Income (Loss) | 15,027 | 5,316 | 20,343 | |||
Stock Options Exercised | 62 | $ 62 | ||||
Stock Options Exercised (in shares) | 15,400 | 15,400 | ||||
Stock Repurchases | $ (11) | (12,603) | $ (12,614) | |||
Stock Repurchases (in shares) | (1,125,945) | |||||
Balance at the end at Jun. 30, 2019 | $ 290 | 113,838 | 111,261 | 3,748 | 229,137 | |
Balance at the end (in shares) at Jun. 30, 2019 | 28,986,729 | |||||
Balance at the beginning at Mar. 31, 2019 | $ 301 | 126,209 | 103,252 | 2,013 | 231,775 | |
Balance at the beginning (in shares) at Mar. 31, 2019 | 30,097,674 | |||||
Stock-based Compensation | 173 | 173 | ||||
Comprehensive Income (Loss) | 8,009 | 1,735 | 9,744 | |||
Stock Options Exercised | 59 | 59 | ||||
Stock Options Exercised (in shares) | 15,000 | |||||
Stock Repurchases | $ (11) | (12,603) | (12,614) | |||
Stock Repurchases (in shares) | (1,125,945) | |||||
Balance at the end at Jun. 30, 2019 | $ 290 | $ 113,838 | $ 111,261 | $ 3,748 | $ 229,137 | |
Balance at the end (in shares) at Jun. 30, 2019 | 28,986,729 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Net Income | $ 15,027 | $ 12,696 | |||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||||
Net Amortization on Securities Available for Sale | 1,225 | 1,638 | |||
Net (Gain) Loss on Sales of Securities Available for Sale | $ (463) | $ 59 | (458) | 59 | |
Provision for Loan Losses | 600 | 900 | 1,200 | 1,500 | |
Depreciation and Amortization of Premises and Equipment | 417 | 368 | |||
Amortization of Other Intangible Assets | 95 | 95 | |||
Amortization of Subordinated Debt Issuance Costs | 51 | 51 | |||
Net Loss on Sale of Foreclosed Assets | 141 | 137 | |||
Stock-based Compensation | 348 | 389 | |||
Changes in Operating Assets and Liabilities: | |||||
Accrued Interest Receivable and Other Assets | (1,499) | (4,692) | |||
Accrued Interest Payable and Other Liabilities | 3,870 | 149 | |||
Net Cash Provided by Operating Activities | 20,276 | 12,390 | |||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
(Increase) Decrease in Bank-owned Certificates of Deposit | 606 | (731) | |||
Proceeds from Sales of Securities Available for Sale | 32,159 | 10,950 | 40,309 | 10,950 | |
Proceeds from Maturities, Paydowns, Payups and Calls of Securities Available for Sale | 15,741 | 12,539 | |||
Purchases of Securities Available for Sale | (37,618) | (46,004) | |||
Net Increase in Loans | (120,232) | (116,589) | |||
Net Increase in FHLB Stock | (450) | (147) | |||
Purchases of Premises and Equipment | (5,966) | (710) | |||
Proceeds from Sales of Foreclosed Assets | 296 | ||||
Net Cash Used in Investing Activities | (107,610) | (140,396) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||
Net Increase in Deposits | 138,331 | 75,341 | |||
Net Decrease in Federal Funds Purchased | (18,000) | (23,000) | |||
Principal Payments on Notes Payable | (1,000) | (1,000) | |||
Proceeds from FHLB Advances | 22,500 | 20,000 | |||
Principal Payments on FHLB Advances | (4,000) | (4,000) | |||
Issuance of Common Stock | 58,857 | ||||
Stock Options Exercised | 62 | ||||
Stock Repurchases | (12,614) | ||||
Net Cash Provided by Financing Activities | 125,279 | 126,198 | |||
NET CHANGE IN CASH AND CASH EQUIVALENTS | 37,945 | (1,808) | |||
Cash and Cash Equivalents Beginning | 28,444 | 23,725 | $ 23,725 | ||
Cash and Cash Equivalents Ending | $ 66,389 | $ 21,917 | 66,389 | 21,917 | $ 28,444 |
SUPPLEMENTAL CASH FLOW DISCLOSURE | |||||
Cash Paid for Interest | 14,164 | 8,320 | |||
Cash Paid for Income Taxes | 2,600 | $ 3,525 | |||
Loans Transferred to Foreclosed Assets | $ 1,033 |
Description of the Business and
Description of the Business and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Description of the Business and Summary of Significant Accounting Policies | |
Description of the Business and Summary of Significant Accounting Policies | Note 1: Description of the Business and Summary of Significant Accounting Policies Organization Bridgewater Bancshares, Inc. (the “Company”) is a financial holding company whose operations consist of the ownership of its wholly-owned subsidiaries, Bridgewater Bank (the “Bank”) and Bridgewater Risk Management, Inc. The Bank commenced operations in 2005 and provides retail and commercial loan and deposit services, principally to customers within the Minneapolis-St. Paul-Bloomington, MN-WI Metropolitan Statistical Area. In 2008, the Bank formed BWB Holdings, LLC, a wholly owned subsidiary of the Bank, for the purpose of holding repossessed property. In 2018, the Bank formed Bridgewater Investment Management, Inc., a wholly owned subsidiary of the Bank, for the purpose of holding certain municipal securities and to engage in municipal lending activities. Bridgewater Risk Management, a subsidiary of the Company, was incorporated in 2016 as a wholly-owned insurance company. It insures the Company and its subsidiaries against certain risks unique to the operations of the Company and for which insurance may not be currently available or economically feasible in today’s insurance marketplace. Bridgewater Risk Management pools resources with several other insurance company subsidiaries of financial institutions to spread a limited amount of risk among themselves. Basis of Presentation The accompanying unaudited consolidated financial statements were prepared in accordance with instructions for Form 10‑Q and, therefore, do not include all disclosures necessary for a complete presentation of the consolidated balance sheets, consolidated statements of income, consolidated statements of comprehensive income, consolidated statements of shareholders’ equity and consolidated statements of cash flows in conformity with U.S. generally accepted accounting principles (“GAAP”). However, all normal recurring adjustments which are, in the opinion of management, necessary for the fair presentation of the interim financial statements have been included. The results of operations for the six-month period ended June 30, 2019 are not necessarily indicative of the results which may be expected for the entire year. For further information, refer to the consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 14, 2019. Principles of Consolidation These consolidated financial statements include the amounts of the Company, the Bank, with locations in Bloomington, Greenwood, Minneapolis (2), St. Louis Park, Orono, and St. Paul, Minnesota, BWB Holdings, LLC, Bridgewater Investment Management, Inc., and Bridgewater Risk Management, Inc. All significant intercompany balances and transactions have been eliminated in consolidation. Use of Estimates in Preparation of Financial Statements The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term include the valuation of securities, determination of the allowance for loan losses, calculation of deferred tax assets, and fair value of financial instruments. Emerging Growth Company The Company qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and may take advantage of certain exemptions from various reporting requirements that are applicable to public companies that are not emerging growth companies, including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. In addition, even if the Company complies with the greater obligations of public companies that are not emerging growth companies, the Company may avail itself of the reduced requirements applicable to emerging growth companies from time to time in the future, so long as the Company is an emerging growth company. The Company will continue to be an emerging growth company until the earliest to occur of: (1) the end of the fiscal year following the fifth anniversary of the date of the first sale of common equity securities under the Company’s Registration Statement on Form S-1, which was declared effective by the SEC on March 13, 2018; (2) the last day of the fiscal year in which the Company has $1.07 billion or more in annual revenues; (3) the date on which the Company is deemed to be a “large accelerated filer” under the Securities Exchange Act of 1934, as amended (the “Exchange Act”); or (4) the date on which the Company has, during the previous three-year period, issued publicly or privately, more than $1.0 billion in non-convertible debt securities. Management cannot predict if investors will find the Company’s common stock less attractive because it will rely on these exemptions. If some investors find the Company’s common stock less attractive as a result, there may be a less active trading market for its common stock and the Company’s stock price may be more volatile. Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933 for complying with new or revised accounting standards. As an emerging growth company, the Company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company elected to take advantage of the benefits of this extended transition period. Impact of Recently Issued Accounting Standards The following accounting standard updates (“ASU”) have been issued by the Financial Accounting Standards Board (“FASB”) and may impact the Company’s consolidated financial statements in future reporting periods. In May 2014, the FASB issued ASU 2014‑09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014‑09”). ASU 2014‑09 implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014‑09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2015‑14, Revenue from Contracts with Customers (Topic 606) (“ASU 2015‑14”) was issued in August 2015 which defers adoption to annual reporting periods beginning after December 15, 2018 and interim reporting periods beginning after December 15, 2019. The timing of the Company’s revenue recognition is not expected to materially change. The Company’s largest portions of revenue, interest and fees on loans, are specifically excluded from the scope of the guidance, and the Company currently recognizes the majority of the remaining revenue sources in a manner that management believes is consistent with the new guidance. Because of this, management believes that revenue recognized under the new guidance will generally approximate revenue recognized under current GAAP. These observations are subject to change as the evaluation is completed. In January 2016, the FASB issued ASU 2016‑01, Financial Instruments—Overall (Subtopic 825‑10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016‑01”). This guidance changes how entities account for equity investments that do not result in consolidation and are not accounted for under the equity method of accounting. Entities will be required to measure these investments at fair value at the end of each reporting period and recognize changes in fair value in net income. A practicability exception will be available for equity investments that do not have readily determinable fair values; however, the exception requires the Company to adjust the carrying amount for impairment and observable price changes in orderly transactions for the identical or a similar investment of the same issuer. This guidance also changes certain disclosure requirements and other aspects of current GAAP. This guidance is effective for fiscal years beginning after December 15, 2018 and for interim reporting periods beginning after December 15, 2019. Early adoption is permitted for only one of the six amendments. The Company is evaluating the impact this new standard will have on its consolidated financial statements. In February 2016, the FASB issued ASU 2016‑02, Leases (Topic 842) (“ASU 2016‑02”). The new guidance establishes the principles to report transparent and economically neutral information about the assets and liabilities that arise from leases. Entities will be required to recognize the lease assets and lease liabilities that arise from leases in the statement of financial position and to disclose qualitative and quantitative information about lease transactions, such as information about variable lease payments and options to renew and terminate leases. Also, in July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements which provides an optional transition method to adopt the new requirements of ASU 2016-02 as of the adoption date with no adjustment to the presentation or disclosure of comparative prior periods included in the financial statement in the period of adoption. The guidance is effective for fiscal years beginning after December 15, 2019 and interim reporting periods beginning after December 15, 2020. The Company’s assets and liabilities will increase based on the present value of the remaining lease payments for leases in place at the adoption date; however, this is not expected to be significant to the Company’s results of operations. In June 2016, the FASB issued ASU 2016‑13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (modified by ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments Credit Losses and ASU 2019-05, Financial Instruments Credit Losses – Targeted Transition Relief .) The amendments in this ASU affect all entities that measure credit losses on financial instruments including loans, debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, reinsurance receivables, and any other financial asset that has a contractual right to receive cash that is not specifically excluded. The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this ASU replace the incurred loss impairment methodology required in current GAAP with a methodology that reflects expected credit losses that requires consideration of a broader range of reasonable and supportable information to estimate credit losses. The amendments in this ASU will affect entities to varying degrees depending on the credit quality of the assets held by the entity, the duration of the assets held, and how the entity applies the current incurred loss methodology. The amendments in this ASU are effective for fiscal years and interim reporting periods beginning after December 15, 2021. All entities may adopt the amendments in the ASU early as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Amendments should be applied using a modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is adopted. The Company is evaluating the impact this new standard will have on its consolidated financial statements. A steering committee has been established with representation from various departments across the organization to assess and implement the new standard. In January 2017, the FASB issued ASU 2017‑04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The amendments in this ASU were issued to address concerns over the cost and complexity of the two-step goodwill impairment test and resulted in the removal of the second step of the test. The amendments require an entity to apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. This ASU is intended to reduce the cost and complexity of the two-step goodwill impairment test and is effective for annual and interim goodwill impairment tests in fiscal years beginning after December 15, 2021, with early adoption permitted for testing performed after January 1, 2017. Upon adoption, the amendments should be applied on a prospective basis and the entity is required to disclose the nature of and reason for the change in accounting principle upon transition. The adoption of this guidance is not expected to have a significant impact on the Company’s consolidated financial statements. In March 2017, the FASB issued ASU 2017‑08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310‑20): Premium Amortization on Purchased Callable Debt Securities. The amendments in this ASU shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount as discounts continue to be accreted to maturity. This ASU is intended to more closely align the amortization period of premiums and discounts to expectations incorporated in market pricing on the underlying securities. In most cases, market participants price securities to the call date that produces the worst yield when the coupon is above current market rates and prices securities to maturity when the coupon is below market rates. As a result, the amendments more closely align interest income recorded on bonds held at a premium or a discount with the economics of the underlying instrument. This ASU is intended to reduce diversity in practice and is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. Upon adoption, the amendments should be applied using a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Additionally, in the period of adoption, an entity should provide disclosures about a change in accounting principles. The adoption of this guidance is not expected to have a significant impact on the Company’s consolidated financial statements. In August 2017, the FASB issued ASU 2017‑12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The amendments of this ASU better align an entity’s accounting and financial reporting for hedging activities with the economic objectives of those activities. The ASU is effective for fiscal years beginning after December 15, 2019 and interim reporting periods beginning after December 15, 2020, with early adoption permitted. The Company is evaluating the impact this new standard will have on its consolidated financial statements. In August 2018, the FASB issued ASU 2018‑13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. The amendments of this ASU modify the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The adoption of this guidance is not expected to have a significant impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40). The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by these amendments. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The adoption of this guidance is not expected to have a significant impact on the Company’s consolidated financial statements. In March 2019, the FASB issued ASU No. 2019-01, Leases (Topic 842): Codification Improvements . This ASU pro vides clarifications to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing essential information about leasing transactions. Specifically, this ASU (i) states that for lessors that are not manufacturers or dealers, the fair value of the underlying asset is its cost, less any volume or trade discounts, as long as there isn’t a significant amount of time between acquisition of the asset and lease commencement, (ii) allows for the cash flows received for sales-type and direct financing leases to continue to be presented as results from investing, and (iii) clarifies the transition guidance related to certain interim disclosures provided in the year of adoption. The guidance is effective for fiscal years beginning after December 15, 2019 and interim reporting periods beginning after December 15, 2020. The adoption of this guidance is not expected to have a significant impact on the Company’s consolidated financial statements. Subsequent Events Subsequent events have been evaluated through August 8, 2019, which is the date the consolidated financial statements were available to be issued. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share | |
Earnings Per Share | Note 2: Earnings Per Share Basic earnings per common share are computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per common share are calculated by dividing net income by the weighted average number of shares adjusted for the dilutive effect of stock options. The dilutive effect was computed using the treasury stock method, which assumes the stock options were exercised and the hypothetical proceeds from the exercise were used by the Company to purchase common stock at the average market price during the period. The calculation of diluted earnings per common share excludes outstanding stock options for which the results would have been anti-dilutive. The following table presents the numerators and denominators for basic and diluted earnings per share computations for the three and six months ended June 30, 2019 and 2018: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Net Income Available to Common Shareholders $ 8,009 $ 6,746 $ 15,027 $ 12,696 Weighted Average Common Stock Outstanding: Weighted Average Common Stock Outstanding (Basic) 29,703,024 30,059,374 29,899,241 27,919,457 Stock Options 609,015 427,427 610,939 426,387 Weighted Average Common Stock Outstanding (Dilutive) 30,312,039 30,486,801 30,510,180 28,345,844 Basic Earnings per Common Share $ 0.27 $ 0.22 $ 0.50 $ 0.45 Diluted Earnings per Common Share 0.26 0.22 0.49 0.45 |
Securities
Securities | 6 Months Ended |
Jun. 30, 2019 | |
Securities | |
Securities | Note 3: Securities The following tables present the amortized cost and estimated fair value of securities with gross unrealized gains and losses at June 30, 2019 and December 31, 2018: June 30, 2019 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Securities Available for Sale: U.S. Treasury Securities $ 14,924 $ 18 $ — $ 14,942 Municipal Bonds 98,380 5,118 (58) 103,440 Mortgage-Backed Securities 47,192 611 (161) 47,642 Corporate Securities 33,216 475 (5) 33,686 SBA Securities 42,803 16 (604) 42,215 Total Securities Available for Sale $ 236,515 $ 6,238 $ (828) $ 241,925 December 31, 2018 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Securities Available for Sale: U.S. Treasury Securities $ 17,862 $ 54 $ (19) $ 17,897 Municipal Bonds 117,991 1,257 (1,115) 118,133 Mortgage-Backed Securities 48,816 52 (1,692) 47,176 Corporate Securities 21,170 72 (124) 21,118 SBA Securities 49,876 13 (835) 49,054 Total Securities Available for Sale $ 255,715 $ 1,448 $ (3,785) $ 253,378 The following tables present the fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2019 and December 31, 2018: Less Than 12 Months 12 Months or Greater Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses June 30, 2019 Municipal Bonds $ — $ — $ 6,633 $ (58) $ 6,633 $ (58) Mortgage-Backed Securities 12,155 (79) 5,759 (82) 17,914 (161) Corporate Securities 1,495 (5) — — 1,495 (5) SBA Securities 1,935 (3) 36,094 (601) 38,029 (604) Total Securities Available for Sale $ 15,585 $ (87) $ 48,486 $ (741) $ 64,071 $ (828) Less Than 12 Months 12 Months or Greater Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses December 31, 2018 U.S. Treasury Securities $ 14,866 $ (19) $ — $ — $ 14,866 $ (19) Municipal Bonds 15,405 (199) 34,172 (916) 49,577 (1,115) Mortgage-Backed Securities 1,751 (21) 41,776 (1,671) 43,527 (1,692) Corporate Securities 9,063 (74) 1,996 (50) 11,059 (124) SBA Securities 28,186 (366) 15,878 (469) 44,064 (835) Total Securities Available for Sale $ 69,271 $ (679) $ 93,822 $ (3,106) $ 163,093 $ (3,785) At June 30, 2019, 90 debt securities had unrealized losses with aggregate depreciation of approximately 1.2% from the Company’s amortized cost basis. At December 31, 2018, 195 debt securities had unrealized losses with aggregate depreciation of approximately 2.3% from the Company’s amortized cost basis. These unrealized losses relate principally to changes in interest rates and are not due to changes in the financial condition of the issuer, the quality of any underlying assets, or applicable credit enhancements. In analyzing whether unrealized losses on debt securities are other than temporary, management considers whether the securities are issued by a government body or agency, whether a rating agency has downgraded the securities, industry analysts’ reports, the financial condition and performance of the issuer, and the quality of any underlying assets or credit enhancements. Since management has the ability and intent to hold these debt securities for the foreseeable future, no declines were deemed to be other than temporary as of June 30, 2019. The following is a summary of amortized cost and estimated fair value of debt securities by the lesser of expected call date or contractual maturity as of June 30, 2019. Call date is used when a call of the debt security is expected, which is determined by the Company when the security has a market value above its amortized cost. Contractual maturities will differ from expected maturities for mortgage-backed and SBA securities because borrowers may have the right to call or prepay obligations without penalties. June 30, 2019 Amortized Cost Fair Value Due in One Year or Less $ 25,149 $ 25,219 Due After One Year Through Five Years 36,983 37,797 Due After Five Years Through 10 Years 69,996 73,253 Due After 10 Years 14,392 15,799 Subtotal 146,520 152,068 Mortgage-Backed Securities 47,192 47,642 SBA Securities 42,803 42,215 Totals $ 236,515 $ 241,925 As of June 30, 2019 and December 31, 2018, the securities portfolio was unencumbered. The following is a summary of the proceeds from sales of securities available for sale, as well as gross gains and losses, for the three and six months ended June 30, 2019 and 2018: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Proceeds From Sales of Securities $ 32,159 $ 10,950 $ 40,309 $ 10,950 Gross Gains on Sales 640 53 716 53 Gross Losses on Sales (177) (112) (258) (112) |
Loans
Loans | 6 Months Ended |
Jun. 30, 2019 | |
Loans | |
Loans | Note 4: Loans The following table presents the components of the loan portfolio at June 30, 2019 and December 31, 2018: June 30, December 31, 2019 2018 Commercial $ 287,804 $ 260,833 Construction and Land Development 195,568 210,041 Real Estate Mortgage: 1-4 Family Mortgage 247,029 226,773 Multifamily 437,198 407,934 CRE Owner Occupied 68,681 64,458 CRE Non-owner Occupied 544,579 490,632 Total Real Estate Mortgage Loans 1,297,487 1,189,797 Consumer and Other 4,044 4,260 Total Loans, Gross 1,784,903 1,664,931 Allowance for Loan Losses (21,362) (20,031) Net Deferred Loan Fees (5,157) (4,515) Total Loans, Net $ 1,758,384 $ 1,640,385 The following table presents the activity in the allowance for loan losses, by segment, for the three months ended June 30, 2019 and 2018: Construction CRE CRE and Land 1-‑4 Family Owner Non‑owner Consumer Three Months Ended June 30, 2019 Commercial Development Mortgage Multifamily Occupied Occupied and Other Unallocated Total Allowance for Loan Losses: Beginning Balance $ 3,361 $ 2,097 $ 2,611 $ 4,715 $ 790 $ 6,349 $ 61 $ 623 $ 20,607 Provision for Loan Losses (181) 148 63 279 54 136 5 96 600 Loans Charged-off — — — — — — (3) — (3) Recoveries of Loans 1 1 153 — — — 3 — 158 Total Ending Allowance Balance $ 3,181 $ 2,246 $ 2,827 $ 4,994 $ 844 $ 6,485 $ 66 $ 719 $ 21,362 Three Months Ended June 30, 2018 Allowance for Loan Losses: Beginning Balance $ 2,225 $ 1,765 $ 2,418 $ 3,476 $ 914 $ 5,407 $ 50 $ 866 $ 17,121 Provision for Loan Losses 21 557 146 76 (91) 204 10 (23) 900 Loans Charged-off — (357) — — — — (4) — (361) Recoveries of Loans 2 — 3 — — — 1 — 6 Total Ending Allowance Balance $ 2,248 $ 1,965 $ 2,567 $ 3,552 $ 823 $ 5,611 $ 57 $ 843 $ 17,666 The following table presents the activity in the allowance for loan losses, by segment, for the six months ended June 30, 2019 and 2018: Construction CRE CRE and Land 1-‑4 Family Owner Non‑owner Consumer Six Months Ended June 30, 2019 Commercial Development Mortgage Multifamily Occupied Occupied and Other Unallocated Total Allowance for Loan Losses: Beginning Balance $ 2,898 $ 2,451 $ 2,597 $ 4,644 $ 808 $ 5,872 $ 65 $ 696 $ 20,031 Provision for Loan Losses 299 (206) 68 350 36 613 17 23 1,200 Loans Charged-off (19) — — — — — (20) — (39) Recoveries of Loans 3 1 162 — — — 4 — 170 Total Ending Allowance Balance $ 3,181 $ 2,246 $ 2,827 $ 4,994 $ 844 $ 6,485 $ 66 $ 719 $ 21,362 Six Months Ended June 30, 2018 Allowance for Loan Losses: Beginning Balance $ 2,435 $ 1,892 $ 2,317 $ 3,170 $ 956 $ 5,087 $ 60 $ 585 $ 16,502 Provision for Loan Losses (209) 430 237 382 (133) 524 11 258 1,500 Loans Charged-off — (357) — — — — (16) — (373) Recoveries of Loans 22 — 13 — — — 2 — 37 Total Ending Allowance Balance $ 2,248 $ 1,965 $ 2,567 $ 3,552 $ 823 $ 5,611 $ 57 $ 843 $ 17,666 The following tables present the balance in the allowance for loan losses and the recorded investment in loans, by segment, based on impairment method as of June 30, 2019 and December 31, 2018: Construction CRE CRE and Land 1-‑4 Family Owner Non‑owner Consumer Allowance for Loan Losses at June 30, 2019 Commercial Development Mortgage Multifamily Occupied Occupied and Other Unallocated Total Individually Evaluated for Impairment $ 49 $ — $ 60 $ — $ — $ — $ — $ — $ 109 Collectively Evaluated for Impairment 3,132 2,246 2,767 4,994 844 6,485 66 719 21,253 Totals $ 3,181 $ 2,246 $ 2,827 $ 4,994 $ 844 $ 6,485 $ 66 $ 719 $ 21,362 Allowance for Loan Losses at December 31, 2018 Individually Evaluated for Impairment $ 8 $ — $ 17 $ — $ 22 $ — $ — $ — $ 47 Collectively Evaluated for Impairment 2,890 2,451 2,580 4,644 786 5,872 65 696 19,984 Totals $ 2,898 $ 2,451 $ 2,597 $ 4,644 $ 808 $ 5,872 $ 65 $ 696 $ 20,031 Construction CRE CRE and Land 1-‑4 Family Owner Non‑owner Consumer Loans at June 30, 2019 Commercial Development Mortgage Multifamily Occupied Occupied and Other Total Individually Evaluated for Impairment $ 582 $ 2,751 $ 1,710 $ — $ 338 $ — $ 54 $ 5,435 Collectively Evaluated for Impairment 287,222 192,817 245,319 437,198 68,343 544,579 3,990 1,779,468 Totals $ 287,804 $ 195,568 $ 247,029 $ 437,198 $ 68,681 $ 544,579 $ 4,044 $ 1,784,903 Loans at December 31, 2018 Individually Evaluated for Impairment $ 8 $ 198 $ 1,676 $ — $ 365 $ — $ 58 $ 2,305 Collectively Evaluated for Impairment 260,825 209,843 225,097 407,934 64,093 490,632 4,202 1,662,626 Totals $ 260,833 $ 210,041 $ 226,773 $ 407,934 $ 64,458 $ 490,632 $ 4,260 $ 1,664,931 The following table presents information regarding total carrying amounts and total unpaid principal balances of impaired loans by loan segment as June 30, 2019 and December 31, 2018: June 30, 2019 December 31, 2018 Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance Loans With No Related Allowance for Loan Losses: Commercial $ 446 $ 446 $ — $ — $ — $ — Construction and Land Development 2,751 3,360 — 198 807 — Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 155 155 — 157 157 — 1st REM - 1-4 Family 617 617 — 253 253 — 1st REM - Rentals 633 632 — 957 957 — CRE Owner Occupied 338 338 — 209 209 — Consumer and Other 54 75 — 58 78 — Totals 4,994 5,623 — 1,832 2,461 — Loans With An Allowance for Loan Losses: Commercial 136 136 49 8 8 8 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 305 331 60 309 336 17 CRE Owner Occupied — — — 156 156 22 Totals 441 467 109 473 500 47 Grand Totals $ 5,435 $ 6,090 $ 109 $ 2,305 $ 2,961 $ 47 The following table presents information regarding the average balances and interest income recognized on impaired loans by loan segment for the three and six months ended June 30, 2019 and 2018: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Average Interest Average Interest Average Interest Average Interest Investment Recognized Investment Recognized Investment Recognized Investment Recognized Loans With No Related Allowance for Loan Losses: Commercial $ 552 $ 8 $ — $ — $ 565 $ 16 $ — $ — Construction and Land Development 2,796 87 — — 2,899 87 — — Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 156 2 506 1 156 4 509 4 1st REM - 1-4 Family 617 12 376 5 617 12 378 5 1st REM - Rentals 635 9 981 11 1,451 18 986 24 Multifamily — — 65 1 — — 33 1 CRE Owner Occupied 434 6 512 7 441 13 518 14 Consumer and Other 54 — 67 — 55 — 69 — Totals 5,244 124 2,507 25 6,184 150 2,493 48 Loans With An Allowance for Loan Losses: Commercial 137 2 14 — 137 2 14 — Construction and Land Development — — 216 — — — 110 — Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 305 — — — 306 — — — LOCs and 2nd REM - Rentals — — 64 1 — — 64 2 1st REM - Rentals — — — — 191 — 67 1 Multifamily — — — — — — 33 1 CRE Owner Occupied — — 158 2 — — 158 4 Totals 442 2 452 3 634 2 446 8 Grand Totals $ 5,686 $ 126 $ 2,959 $ 28 $ 6,818 $ 152 $ 2,939 $ 56 The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The process of analyzing loans for changes in risk rating is ongoing through routine monitoring of the portfolio and annual internal credit reviews for credits meeting certain thresholds. The following tables present the risk category of loans by loan segment as of June 30, 2019 and December 31, 2018, based on the most recent analysis performed by management: June 30, 2019 Pass Watch Substandard Total Commercial $ 287,222 $ — $ 582 $ 287,804 Construction and Land Development 192,672 145 2,751 195,568 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 31,232 138 — 31,370 1st REM - 1-4 Family 40,123 125 796 41,044 LOCs and 2nd REM - Rentals 14,983 498 461 15,942 1st REM - Rentals 156,830 1,390 453 158,673 Multifamily 437,198 — — 437,198 CRE Owner Occupied 66,989 — 1,692 68,681 CRE Non-owner Occupied 541,426 3,153 — 544,579 Consumer and Other 3,967 23 54 4,044 Totals $ 1,772,642 $ 5,472 $ 6,789 $ 1,784,903 December 31, 2018 Pass Watch Substandard Total Commercial $ 260,225 $ 600 $ 8 $ 260,833 Construction and Land Development 207,174 2,669 198 210,041 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 30,669 587 — 31,256 1st REM - 1-4 Family 37,526 126 253 37,905 LOCs and 2nd REM - Rentals 11,341 628 474 12,443 1st REM - Rentals 142,357 1,854 958 145,169 Multifamily 407,934 — — 407,934 CRE Owner Occupied 62,223 — 2,235 64,458 CRE Non-owner Occupied 487,438 3,194 — 490,632 Consumer and Other 4,202 — 58 4,260 Totals $ 1,651,089 $ 9,658 $ 4,184 $ 1,664,931 The following tables present the aging of the recorded investment in past due loans by loan segment as of June 30, 2019 and December 31, 2018: Accruing Interest 30-89 Days 90 Days or June 30, 2019 Current Past Due More Past Due Nonaccrual Total Commercial $ 287,765 $ 31 $ — $ 8 $ 287,804 Construction and Land Development 195,330 50 — 188 195,568 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 31,370 — — — 31,370 1st REM - 1-4 Family 41,044 — — — 41,044 LOCs and 2nd REM - Rentals 15,467 170 — 305 15,942 1st REM - Rentals 158,459 214 — — 158,673 Multifamily 437,198 — — — 437,198 CRE Owner Occupied 68,681 — — — 68,681 CRE Non-owner Occupied 544,579 — — — 544,579 Consumer and Other 3,985 5 — 54 4,044 Totals $ 1,783,878 $ 470 $ — $ 555 $ 1,784,903 Accruing Interest 30-89 Days 90 Days or December 31, 2018 Current Past Due More Past Due Nonaccrual Total Commercial $ 260,813 $ 12 $ — $ 8 $ 260,833 Construction and Land Development 209,843 — — 198 210,041 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 30,939 — — 317 31,256 1st REM - 1-4 Family 37,705 200 — — 37,905 LOCs and 2nd REM - Rentals 12,443 — — — 12,443 1st REM - Rentals 145,169 — — — 145,169 Multifamily 407,934 — — — 407,934 CRE Owner Occupied 64,360 98 — — 64,458 CRE Non-owner Occupied 490,632 — — — 490,632 Consumer and Other 4,201 1 — 58 4,260 Totals $ 1,664,039 $ 311 $ — $ 581 $ 1,664,931 At June 30, 2019, there were four loans classified as troubled debt restructurings with a current outstanding balance of $522. In comparison, at December 31, 2018, there were three loans classified as troubled debt restructurings with an outstanding balance of $437. There was one new loan classified as a troubled debt restructuring during the six month period ended June 30, 2019, and no loans classified as troubled debt restructurings during the previous twelve months subsequently defaulted during the six months ended June 30, 2019. |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2019 | |
Deposits. | |
Deposits | Note 5: Deposits The following table presents the composition of deposits at June 30, 2019 and December 31, 2018: June 30, December 31, 2019 2018 Transaction Deposits $ 640,516 $ 548,770 Savings and Money Market Deposits 456,447 402,639 Time Deposits 359,338 318,356 Brokered Deposits 242,964 291,169 Totals $ 1,699,265 $ 1,560,934 |
Tax Credit Investments
Tax Credit Investments | 6 Months Ended |
Jun. 30, 2019 | |
Tax Credit Investments | |
Tax Credit Investments | Note 6: Tax Credit Investments The Company invests in qualified affordable housing projects and federal historic projects for the purpose of community reinvestment and obtaining tax credits. The Company’s tax credit investments are limited to existing lending relationships with well-known developers and projects within the Company’s market area. The following table presents the Company’s investments in qualified affordable housing projects and other tax credit investments at June 30, 2019 and December 31, 2018: June 30, 2019 December 31, 2018 Investment Accounting Method Investment Unfunded Commitment (1) Investment Unfunded Commitment Low Income Housing Tax Credit (LIHTC) Proportional Amortization $ 2,292 $ — $ 2,436 $ — Federal Historic Tax Credit (FHTC) Equity 2,425 5,067 1,814 3,226 Total $ 4,717 $ 5,067 $ 4,250 $ 3,226 (1) All commitments are expected to be paid by the Company by December 31, 2020. The following table presents the amortization expense and tax benefit recognized for the Company’s qualified affordable housing projects and other tax credit investments for the three and six months ended June 30, 2019 and 2018: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Amortization Expense (1) LIHTC $ 72 $ 67 $ 144 $ 161 FHTC 1,390 — 1,567 — Total $ 1,462 $ 67 $ 1,711 $ 161 Tax Benefit Recognized (2) LIHTC $ (83) $ (66) $ (165) $ (165) FHTC (1,684) — (1,898) — Total $ (1,767) $ (66) $ (2,063) $ (165) (1) The amortization expense for the LIHTC investments are included in income tax expense. The amortization for the FHTC tax credits are included in noninterest expense. (2) All of the tax benefits recognized are included in income tax expense. The tax benefit recognized for the FHTC investments primarily reflects the tax credits generated from the investments, and excludes the net tax expense/benefit of the investments’ income/loss. |
Commitments, Contingencies and
Commitments, Contingencies and Credit Risk | 6 Months Ended |
Jun. 30, 2019 | |
Commitments, Contingencies and Credit Risk | |
Commitments, Contingencies and Credit Risk | Note 7: Commitments, Contingencies and Credit Risk Financial Instruments with Off-Balance Sheet Credit Risk The Company 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 instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets. The Company’s exposure to credit loss is represented by the contractual, or notional, amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance sheet instruments. Since some of the commitments are expected to expire without being drawn upon and some of the commitments may not be drawn upon to the total extent of the commitment, the notional amount of these commitments does not necessarily represent future cash requirements. The following commitments were outstanding at June 30, 2019 and December 31, 2018: June 30, December 31, 2019 2018 Unfunded Commitments Under Lines of Credit $ 456,578 $ 395,032 Letters of Credit 78,407 81,053 Totals $ 534,985 $ 476,085 The Company had outstanding letters of credit with the FHLB in total amounts of $119,011 and $129,152 at June 30, 2019 and December 31, 2018, respectively, on behalf of customers and to secure public deposits. On August 27, 2018, the Bank and Reuter Walton Commercial, LLC (the “Contractor”) entered into a Standard Form of Agreement Between Owner and Contractor and the corresponding General Conditions of the Contract for Construction (collectively, the “Construction Contract”). Under the Construction Contract, the Contractor will construct the core and shell of a new headquarters building for the Bank in St. Louis Park, Minnesota, and the Bank will pay the Contractor a contract price consisting of the cost of work plus a fee equal to 3.75% of the cost of work, subject to a guaranteed maximum price of $23,000, with anticipated construction completed in 2020. As of June 30, 2019, $6,937 has been paid under this Construction Contract. Legal Contingencies Neither the Company nor any of its subsidiaries is a party, and no property of these entities is subject, to any material pending legal proceedings, other than ordinary routine litigation incidental to the Bank’s business. The Company does not know of any proceeding contemplated by a governmental authority against the Company or any of its subsidiaries . |
Stock Options
Stock Options | 6 Months Ended |
Jun. 30, 2019 | |
Stock Options | |
Stock Options | Note 8: Stock Options In 2017, the Company approved the Bridgewater Bancshares, Inc. 2017 Combined Incentive and Non-Statutory Stock Option Plan (the “2017 Plan”). Under the 2017 Plan, the Company may grant options to its directors, officers, and employees for up to 1,500,000 shares of common stock. Both incentive stock options and nonqualified stock options may be granted under the 2017 Plan. The exercise price of each option equals the estimated fair market value of the Company’s stock on the date of grant and an option’s maximum term is ten years. All outstanding options have been granted with a vesting period of five years. As of June 30, 2019 and December 31, 2018, there were 538,600 and 540,000, respectively, unissued shares of the Company’s common stock authorized for option grants under the 2017 Plan. The fair market value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model that uses the assumptions noted in the table below. Expected volatilities are based on an industry index as described below. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. Historically, the Company has not paid a dividend on its common stock and does not expect to do so in the near future. The Company used the S&P 600 CM Bank Index as its historical volatility index. The S&P 600 CM Bank Index is an index of publicly traded small capitalization, regional, commercial banks located throughout the United States. There were 44 banks in the index ranging in market capitalization from $470.0 million up to $4.5 billion. The weighted average assumptions used in the model for valuing stock option grants for the six months ended June 30, 2019, are as follows: June 30, 2019 Dividend Yield — % Expected Life 7 Years Expected Volatility 20.92 % Risk-Free Interest Rate 2.67 % The following table presents a summary of the status of the Company’s stock option plans for the six months ended June 30, 2019: June 30, 2019 Weighted Average Shares Exercise Price Outstanding at Beginning of Year 1,807,100 $ 6.24 Granted 10,000 11.15 Exercised (15,400) 4.00 Forfeitures (8,600) 10.65 Outstanding at Period End 1,793,100 $ 6.26 Options Exercisable at Period End 824,700 $ 4.09 For the three months ended June 30, 2019 and 2018, the Company recognized compensation expense for stock options of $174 and $190, respectively. For the six months ended June 30, 2019 and 2018, the Company recognized compensation expense for stock options of $348 and $389, respectively. The following table presents information pertaining to options outstanding at June 30, 2019: Options Outstanding Options Exercisable Number Remaining Number Exercise Price Outstanding Contractual Life Exercise Price Outstanding $ 1.65 7,500 2.4 Years $ 1.65 7,500 2.13 80,000 3.8 Years 2.13 80,000 3.00 490,000 4.5 Years 3.00 490,000 3.58 50,000 5.5 Years 3.58 40,000 7.47 1,030,600 8.3 Years 7.47 202,200 13.22 25,000 8.9 Years 13.22 5,000 12.86 45,000 9.2 Years 12.86 — 12.94 30,000 9.3 Years 12.94 — 11.59 25,000 9.3 Years 11.59 — 11.15 10,000 9.7 Years 11.15 — Totals 1,793,100 7.0 Years $ 6.26 $ 824,700 As of June 30, 2019, there was $2,319 of total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the 2017 Plan that is expected to be recognized over a period of five years. The following is an analysis of nonvested options to purchase shares of the Company’s stock issued and outstanding for the six months ended June 30, 2019: Weighted Number of Average Grant Shares Date Fair Value Nonvested Options at December 31, 2018 1,086,000 $ 2.78 Granted 10,000 3.30 Vested (119,000) 1.67 Forfeited (8,600) 2.80 Nonvested Options at June 30, 2019 968,400 $ 2.92 |
Regulatory Capital
Regulatory Capital | 6 Months Ended |
Jun. 30, 2019 | |
Regulatory Capital | |
Regulatory Capital | Note 9: Regulatory Capital Effective January 1, 2015, the capital requirements of the Company and the Bank were changed to implement the regulatory requirements of the Basel III capital reforms. The Basel III requirements, among other things, (i) apply a strengthened set of capital requirements to the Company and Bank, including requirements related to common equity as a component of core capital, (ii) implement a “capital conservation buffer” against risk and higher minimum tier 1 capital requirement, and (iii) revise the rules for calculating risk-weighted assets for purposes of such requirements. The rules made corresponding revisions to the prompt corrective action framework and include the new capital ratios and buffer requirements which were phased in incrementally, with full implementation on January 1, 2019. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve qualitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the tables below and defined in the regulations) of Total Capital to Risk Weighted Assets, Tier 1 Capital to Risk Weighted Assets, Common Equity Tier 1 Capital to Risk Weighted Assets, and Tier 1 Capital to Average Assets. The following tables present the Company and the Bank’s capital amounts and ratios as of June 30, 2019 and December 31, 2018: Minimum Required For Capital Adequacy To be Well Capitalized For Capital Adequacy Purposes Plus Capital Under Prompt Corrective Actual Purposes Conservation Buffer Action Regulations June 30, 2019 Amount Ratio Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Company (Consolidated): Total Risk-Based Capital $ 264,671 13.70 % $ 154,553 8.00 % $ 202,851 10.50 % N/A N/A Tier 1 Risk-Based Capital 221,806 11.48 115,915 6.00 164,213 8.50 N/A N/A Common Equity Tier 1 Capital 221,806 11.48 86,936 4.50 135,234 7.00 N/A N/A Tier 1 Leverage Ratio 221,806 10.75 82,551 4.00 82,551 4.00 N/A N/A Bank: Total Risk-Based Capital $ 244,419 12.67 % $ 154,339 8.00 % $ 202,569 10.50 % $ 192,923 10.00 % Tier 1 Risk-Based Capital 226,235 11.73 115,754 6.00 163,985 8.50 154,339 8.00 Common Equity Tier 1 Capital 226,235 11.73 86,815 4.50 135,046 7.00 125,400 6.50 Tier 1 Leverage Ratio 226,235 10.99 82,372 4.00 82,372 4.00 102,965 5.00 Minimum Required For Capital Adequacy To be Well Capitalized For Capital Adequacy Purposes Plus Capital Under Prompt Corrective Actual Purposes Conservation Buffer Action Regulations December 31, 2018 Amount Ratio Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Company (Consolidated): Total Risk-Based Capital $ 263,909 14.55 % $ 145,111 8.00 % $ 179,121 9.875 % N/A N/A Tier 1 Risk-Based Capital 218,888 12.07 108,833 6.00 142,844 7.875 N/A N/A Common Equity Tier 1 Capital 218,888 12.07 81,625 4.50 115,635 6.375 N/A N/A Tier 1 Leverage Ratio 218,888 11.23 77,971 4.00 77,971 4.00 N/A N/A Bank: Total Risk-Based Capital $ 230,865 12.76 % $ 144,776 8.00 % $ 178,707 9.875 % $ 180,970 10.00 % Tier 1 Risk-Based Capital 210,474 11.63 108,582 6.00 142,514 7.875 144,776 8.00 Common Equity Tier 1 Capital 210,474 11.63 81,436 4.50 115,368 6.375 117,630 6.50 Tier 1 Leverage Ratio 210,474 10.82 77,795 4.00 77,795 4.00 97,244 5.00 The Company and the Bank must maintain a capital conservation buffer, as defined by Basel III regulatory capital guidelines, in order to avoid limitations on capital distributions, including dividend payments, stock repurchases and certain discretionary bonus payments to executive officers. The capital conservation buffer was fully phased-in on January 1, 2019 at 2.5%. The required phase-in capital conservation buffer during 2018 was 1.875%. |
Stock Repurchase Program
Stock Repurchase Program | 6 Months Ended |
Jun. 30, 2019 | |
Stock Repurchase Program | |
Stock Repurchase Program | Note 10: Stock Repurchase Program On January 22, 2019, the Company adopted a stock repurchase program. Under the repurchase program, the Company may repurchase up to $15 million of its common stock during the 24-month period beginning on January 22, 2019. The stock repurchase program permits the Company’s management to acquire shares of the Company’s common stock from time to time in the open market in accordance with Rule 10b-18 of the Exchange Act or in privately negotiated transactions at prices management considers to be attractive and in the best interests of the Company and its shareholders. The stock repurchase program does not obligate the Company to repurchase shares of its common stock. Any repurchases are subject to compliance with applicable laws and regulations. Repurchases will be conducted in consideration of general market and economic conditions, regulatory requirements, availability of funds, and other relevant considerations, as determined by the Company. The stock repurchase program may be modified, suspended or discontinued at any time at the discretion of the Company’s Board of Directors. During the three and six months ended June 30, 2019, the Company repurchased 1,125,945 shares of its common stock, representing approximately 4% of the Company’s outstanding shares. Shares were repurchased at a weighted average price of $11.20 for a total of $12.6 million. All shares repurchased under the stock repurchase program were converted to authorized but unissued shares. At June 30, 2019, the remaining amount that could be used to repurchase shares under the stock repurchase program was $2.4 million. |
Fair Value Measurement
Fair Value Measurement | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Measurement | |
Fair Value Measurement | Note 11: Fair Value Measurement The Company categorizes its assets and liabilities measured at fair value into a three-level hierarchy based on the priority of the inputs to the valuation technique used to determine fair value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used in the determination of the fair value measurement fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement. Assets and liabilities valued at fair value are categorized based on the inputs to the valuation techniques as follows: Level 1 – Inputs that utilized quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 – Inputs that include quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instruments. Fair values for these instruments are estimated using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. Level 3 – Inputs that are unobservable for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. Subsequent to initial recognition, the Company may re-measure the carrying value of assets and liabilities measured on a nonrecurring basis to fair value. Adjustments to fair value usually result when certain assets are impaired. Such assets are written down from their carrying amounts to their fair value. Professional standards allow entities the irrevocable option to elect to measure certain financial instruments and other items at fair value for the initial and subsequent measurement on an instrument-by-instrument basis. The Company adopted the policy to value certain financial instruments at fair value. The Company has not elected to measure any existing financial instruments at fair value; however, it may elect to measure newly acquired financial instruments at fair value in the future. Recurring Basis The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The following tables present the balances of the assets and liabilities measured at fair value on a recurring basis as of June 30, 2019 and December 31, 2018: June 30, 2019 Level 1 Level 2 Level 3 Total Fair Value of Financial Assets: Securities Available for Sale: U.S. Treasury Securities $ 14,942 $ — $ — $ 14,942 Municipal Bonds — 103,440 — 103,440 Mortgage-Backed Securities — 47,642 — 47,642 Corporate Securities — 33,686 — 33,686 SBA Securities — 42,215 — 42,215 Interest Rate Swap — 115 — 115 Total Fair Value of Financial Assets $ 14,942 $ 227,098 $ — $ 242,040 Fair Value of Financial Liabilities: Interest Rate Swaps $ — $ 780 $ — $ 780 Total Fair Value of Financial Liabilities $ — $ 780 $ — $ 780 December 31, 2018 Level 1 Level 2 Level 3 Total Fair Value of Financial Assets: Securities Available for Sale: U.S. Treasury Securities $ 17,897 $ — $ — $ 17,897 Municipal Bonds — 118,133 — 118,133 Mortgage-Backed Securities — 47,176 — 47,176 Corporate Securities — 21,118 — 21,118 SBA Securities — 49,054 — 49,054 Interest Rate Swap — 352 — 352 Total Fair Value of Financial Assets $ 17,897 $ 235,833 $ — $ 253,730 Investment Securities When available, the Company uses quoted market prices to determine the fair value of investment securities; such items are classified in Level 1 of the fair value hierarchy. For the Company’s investments, when quoted prices are not available for identical securities in an active market, the Company determines fair value utilizing vendors who apply matrix pricing for similar bonds where no price is observable or may compile prices from various sources. These models are primarily industry-standard models that consider various assumptions, including time value, yield curve, volatility factors, prepayment speeds, default rates, loss severity, current market, and contractual prices for the underlying financial instruments, as well as other relevant economic measures. Substantially, all of these assumptions are observable in the marketplace and can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Fair values from these models are verified, where possible, against quoted market prices for recent trading activity of assets with similar characteristics to the security being valued. Such methods are generally classified as Level 2. However, when prices from independent sources vary, or cannot be obtained or corroborated, a security is generally classified as Level 3. Interest Rate Swap Interest rate swaps are traded in over-the-counter markets where quoted market prices are not readily available. For those interest rate swaps, fair value is determined using internally developed models of a third party that uses primarily market observable inputs, such as yield curves and option volatilities, and accordingly are valued using Level 2 inputs. Nonrecurring Basis Certain assets are measured at fair value on a nonrecurring basis. These assets are not measured at fair value on an ongoing basis; however, they are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment or a change in the amount of previously recognized impairment. The following tables present net impairment losses related to nonrecurring fair value measurements of certain assets at June 30, 2019 and December 31, 2018: June 30, 2019 Level 1 Level 2 Level 3 Loss Impaired Loans $ — $ 332 $ — $ 109 Foreclosed Assets — 1,033 — — Totals $ — $ 1,365 $ — $ 109 December 31, 2018 Level 1 Level 2 Level 3 Loss Impaired Loans $ — $ 426 $ — $ 396 Totals $ — $ 426 $ — $ 396 Impaired Loans In accordance with the provisions of the loan impairment guidance, impairment is measured on loans when it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement. The fair value of impaired loans is estimated using one of several methods, including collateral value, market value of similar debt, or discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceeds the recorded investments in such loans. Impaired loans for which an allowance is established based on the fair value of collateral require classification in the fair value hierarchy. Collateral values are estimated using Level 2 inputs based on customized discounting criteria. Impairment amounts on impaired loans represent specific valuation allowance and write-downs during the period presented on impaired loans that were individually evaluated for impairment based on the estimated fair value of the collateral less estimated selling costs, excluding impaired loans fully charged-off. Foreclosed Assets Foreclosed assets are recorded at fair value based on property appraisals, less estimated selling costs, at the date of the transfer with any impairment amount charged to the allowance for loan losses. Subsequent to the transfer, foreclosed assets are carried at the lower of cost or fair value, less estimated selling costs with changes in fair value or any impairment amount recorded in other noninterest income. Values are estimated using Level 2 inputs based on customized discounting criteria. The carrying value of foreclosed assets is not re-measured to fair value on a recurring basis, but is subject to fair value adjustments when the carrying value exceeds the fair value, less estimated selling costs. Fair Value Disclosure of fair value information about financial instruments, for which it is practicable to estimate that value, is required whether or not recognized in the consolidated balance sheets. In cases where quoted market prices are not available, fair values are based on estimates using present value of cash flow or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimate of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases could not be realized in immediate settlement of the instruments. Certain financial instruments with a fair value that is not practicable to estimate and all non-financial instruments are excluded from the disclosure requirements. Accordingly, the aggregate fair value amounts presented do not necessarily represent the underlying value of the Company. Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters that could affect the estimates. Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business. Deposits with no stated maturities are defined as having a fair value equivalent to the amount payable on demand. This prohibits adjusting fair value derived from retaining those deposits for an expected future period of time. This component, commonly referred to as a deposit base intangible, is neither considered in the above amounts nor is it recorded as an intangible asset on the balance sheet. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. The following tables present the carrying amount and estimated fair values of financial instruments at June 30, 2019 and December 31, 2018: June 30, 2019 Fair Value Hierarchy Carrying Estimated Amount Level 1 Level 2 Level 3 Fair Value Financial Assets: Cash and Due From Banks $ 66,389 $ 66,389 $ — $ — $ 66,389 Bank-Owned Certificates of Deposit 2,699 — 2,725 — 2,725 Securities Available for Sale 241,925 14,942 226,983 — 241,925 FHLB Stock, at Cost 8,064 — 8,064 — 8,064 Loans, Net 1,758,384 — 1,756,716 — 1,756,716 Accrued Interest Receivable 7,583 — 7,583 — 7,583 Interest Rate Swap 115 — 115 — 115 Financial Liabilities: Deposits $ 1,699,265 $ — $ 1,705,562 $ — $ 1,705,562 Notes Payable 14,000 — 14,157 — 14,157 FHLB Advances 142,500 — 146,616 — 146,616 Subordinated Debentures 24,681 — 25,715 — 25,715 Accrued Interest Payable 2,109 — 2,109 — 2,109 Interest Rate Swap 780 — 780 — 780 December 31, 2018 Fair Value Hierarchy Carrying Estimated Amount Level 1 Level 2 Level 3 Fair Value Financial Assets: Cash and Due From Banks $ 28,444 $ 28,444 $ — $ — $ 28,444 Bank-Owned Certificates of Deposit 3,305 — 3,292 — 3,292 Securities Available for Sale 253,378 17,897 235,481 — 253,378 FHLB Stock, at Cost 7,614 — 7,614 — 7,614 Loans, Net 1,640,385 — 1,634,196 — 1,634,196 Accrued Interest Receivable 6,589 — 6,589 — 6,589 Interest Rate Swap 352 — 352 — 352 Financial Liabilities: Deposits $ 1,560,934 $ — $ 1,560,488 $ — $ 1,560,488 Federal Funds Purchased 18,000 — 18,000 — 18,000 Notes Payable 15,000 — 15,551 — 15,551 FHLB Advances 124,000 — 124,952 — 124,952 Subordinated Debentures 24,630 — 25,365 — 25,365 Accrued Interest Payable 1,806 — 1,806 — 1,806 The following methods and assumptions were used by the Company to estimate fair value of consolidated financial statements not previously discussed. Cash and due from banks – The carrying amount of cash and cash equivalents approximates their fair value. Bank-owned certificates of deposit – Fair values of bank-owned certificates of deposit are estimated using the discounted cash flow analysis based on current rates for similar types of deposits. FHLB stock – The carrying amount of FHLB stock approximates its fair value. Loans, Net – Fair values for loans are estimated based on discounted cash flows, using interest rates currently being offered for loans with similar terms to borrowers with similar credit quality. Accrued interest receivable – The carrying amount of accrued interest receivable approximates its fair value since it is short term in nature and does not present anticipated credit concerns. Deposits – The fair values disclosed for demand deposits without stated maturities (interest and noninterest transaction, savings, and money market accounts) are equal to the amount payable on demand at the reporting date (their carrying amounts). Fair values for the fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits. Federal funds purchased – The carrying amount of federal funds purchased approximates the fair value. Notes payable and subordinated debt – The fair value of the Company’s notes payable and subordinated debt are estimated using a discounted cash flow analysis, based on the Company’s current incremental borrowing rate for similar types of borrowing arrangements. FHLB advances – The fair values of the Company’s FHLB advances are estimated using discounted cash flow analysis based on the Company’s current incremental borrowing rates for similar types of borrowing agreements. Accrued interest payable – The carrying amount of accrued interest payable approximates its fair value since it is short term in nature. Off-balance sheet instruments – Fair values of the Company’s off-balance sheet instruments (lending commitments and unused lines of credit) are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements, the counterparties’ credit standing and discounted cash flow analysis. The fair value of these off-balance-sheet items approximates the recorded amounts of the related fees and was not material at June 30, 2019 and December 31, 2018. Limitations – The fair value of a financial instrument is the current amount that would be exchanged between market participants, other than in a forced liquidation. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Consequently, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events | |
Subsequent Events | Note 12: Subsequent Events On July 23, 2019, the Company’s Board of Directors approved a $10 million increase to the Company’s stock repurchase program that was originally announced in January 2019, increasing the authorization to repurchase common stock under the program from a total of $15 million to a total of $25 million. The stock repurchase program continues through January 22, 2021. Any repurchases are subject to compliance with applicable laws and regulations. Repurchases will be conducted in consideration of general market and economic conditions, regulatory requirements, availability of funds, and other relevant considerations, as determined by the Company. The stock repurchase program may be modified, suspended or discontinued at any time at the discretion of the Company’s Board of Directors. |
Description of the Business a_2
Description of the Business and Summary of Significant Accounting Policies (Policies ) | 6 Months Ended |
Jun. 30, 2019 | |
Description of the Business and Summary of Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements were prepared in accordance with instructions for Form 10‑Q and, therefore, do not include all disclosures necessary for a complete presentation of the consolidated balance sheets, consolidated statements of income, consolidated statements of comprehensive income, consolidated statements of shareholders’ equity and consolidated statements of cash flows in conformity with U.S. generally accepted accounting principles (“GAAP”). However, all normal recurring adjustments which are, in the opinion of management, necessary for the fair presentation of the interim financial statements have been included. The results of operations for the six-month period ended June 30, 2019 are not necessarily indicative of the results which may be expected for the entire year. For further information, refer to the consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 14, 2019. |
Principles of Consolidation | Principles of Consolidation These consolidated financial statements include the amounts of the Company, the Bank, with locations in Bloomington, Greenwood, Minneapolis (2), St. Louis Park, Orono, and St. Paul, Minnesota, BWB Holdings, LLC, Bridgewater Investment Management, Inc., and Bridgewater Risk Management, Inc. All significant intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates in Preparation of Financial Statements | Use of Estimates in Preparation of Financial Statements The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term include the valuation of securities, determination of the allowance for loan losses, calculation of deferred tax assets, and fair value of financial instruments. |
Impact of Recent Accounting Standards | Impact of Recently Issued Accounting Standards The following accounting standard updates (“ASU”) have been issued by the Financial Accounting Standards Board (“FASB”) and may impact the Company’s consolidated financial statements in future reporting periods. In May 2014, the FASB issued ASU 2014‑09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014‑09”). ASU 2014‑09 implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014‑09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2015‑14, Revenue from Contracts with Customers (Topic 606) (“ASU 2015‑14”) was issued in August 2015 which defers adoption to annual reporting periods beginning after December 15, 2018 and interim reporting periods beginning after December 15, 2019. The timing of the Company’s revenue recognition is not expected to materially change. The Company’s largest portions of revenue, interest and fees on loans, are specifically excluded from the scope of the guidance, and the Company currently recognizes the majority of the remaining revenue sources in a manner that management believes is consistent with the new guidance. Because of this, management believes that revenue recognized under the new guidance will generally approximate revenue recognized under current GAAP. These observations are subject to change as the evaluation is completed. In January 2016, the FASB issued ASU 2016‑01, Financial Instruments—Overall (Subtopic 825‑10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016‑01”). This guidance changes how entities account for equity investments that do not result in consolidation and are not accounted for under the equity method of accounting. Entities will be required to measure these investments at fair value at the end of each reporting period and recognize changes in fair value in net income. A practicability exception will be available for equity investments that do not have readily determinable fair values; however, the exception requires the Company to adjust the carrying amount for impairment and observable price changes in orderly transactions for the identical or a similar investment of the same issuer. This guidance also changes certain disclosure requirements and other aspects of current GAAP. This guidance is effective for fiscal years beginning after December 15, 2018 and for interim reporting periods beginning after December 15, 2019. Early adoption is permitted for only one of the six amendments. The Company is evaluating the impact this new standard will have on its consolidated financial statements. In February 2016, the FASB issued ASU 2016‑02, Leases (Topic 842) (“ASU 2016‑02”). The new guidance establishes the principles to report transparent and economically neutral information about the assets and liabilities that arise from leases. Entities will be required to recognize the lease assets and lease liabilities that arise from leases in the statement of financial position and to disclose qualitative and quantitative information about lease transactions, such as information about variable lease payments and options to renew and terminate leases. Also, in July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements which provides an optional transition method to adopt the new requirements of ASU 2016-02 as of the adoption date with no adjustment to the presentation or disclosure of comparative prior periods included in the financial statement in the period of adoption. The guidance is effective for fiscal years beginning after December 15, 2019 and interim reporting periods beginning after December 15, 2020. The Company’s assets and liabilities will increase based on the present value of the remaining lease payments for leases in place at the adoption date; however, this is not expected to be significant to the Company’s results of operations. In June 2016, the FASB issued ASU 2016‑13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (modified by ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments Credit Losses and ASU 2019-05, Financial Instruments Credit Losses – Targeted Transition Relief .) The amendments in this ASU affect all entities that measure credit losses on financial instruments including loans, debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, reinsurance receivables, and any other financial asset that has a contractual right to receive cash that is not specifically excluded. The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this ASU replace the incurred loss impairment methodology required in current GAAP with a methodology that reflects expected credit losses that requires consideration of a broader range of reasonable and supportable information to estimate credit losses. The amendments in this ASU will affect entities to varying degrees depending on the credit quality of the assets held by the entity, the duration of the assets held, and how the entity applies the current incurred loss methodology. The amendments in this ASU are effective for fiscal years and interim reporting periods beginning after December 15, 2021. All entities may adopt the amendments in the ASU early as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Amendments should be applied using a modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is adopted. The Company is evaluating the impact this new standard will have on its consolidated financial statements. A steering committee has been established with representation from various departments across the organization to assess and implement the new standard. In January 2017, the FASB issued ASU 2017‑04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The amendments in this ASU were issued to address concerns over the cost and complexity of the two-step goodwill impairment test and resulted in the removal of the second step of the test. The amendments require an entity to apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. This ASU is intended to reduce the cost and complexity of the two-step goodwill impairment test and is effective for annual and interim goodwill impairment tests in fiscal years beginning after December 15, 2021, with early adoption permitted for testing performed after January 1, 2017. Upon adoption, the amendments should be applied on a prospective basis and the entity is required to disclose the nature of and reason for the change in accounting principle upon transition. The adoption of this guidance is not expected to have a significant impact on the Company’s consolidated financial statements. In March 2017, the FASB issued ASU 2017‑08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310‑20): Premium Amortization on Purchased Callable Debt Securities. The amendments in this ASU shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount as discounts continue to be accreted to maturity. This ASU is intended to more closely align the amortization period of premiums and discounts to expectations incorporated in market pricing on the underlying securities. In most cases, market participants price securities to the call date that produces the worst yield when the coupon is above current market rates and prices securities to maturity when the coupon is below market rates. As a result, the amendments more closely align interest income recorded on bonds held at a premium or a discount with the economics of the underlying instrument. This ASU is intended to reduce diversity in practice and is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. Upon adoption, the amendments should be applied using a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Additionally, in the period of adoption, an entity should provide disclosures about a change in accounting principles. The adoption of this guidance is not expected to have a significant impact on the Company’s consolidated financial statements. In August 2017, the FASB issued ASU 2017‑12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The amendments of this ASU better align an entity’s accounting and financial reporting for hedging activities with the economic objectives of those activities. The ASU is effective for fiscal years beginning after December 15, 2019 and interim reporting periods beginning after December 15, 2020, with early adoption permitted. The Company is evaluating the impact this new standard will have on its consolidated financial statements. In August 2018, the FASB issued ASU 2018‑13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. The amendments of this ASU modify the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The adoption of this guidance is not expected to have a significant impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40). The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by these amendments. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The adoption of this guidance is not expected to have a significant impact on the Company’s consolidated financial statements. In March 2019, the FASB issued ASU No. 2019-01, Leases (Topic 842): Codification Improvements . This ASU pro vides clarifications to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing essential information about leasing transactions. Specifically, this ASU (i) states that for lessors that are not manufacturers or dealers, the fair value of the underlying asset is its cost, less any volume or trade discounts, as long as there isn’t a significant amount of time between acquisition of the asset and lease commencement, (ii) allows for the cash flows received for sales-type and direct financing leases to continue to be presented as results from investing, and (iii) clarifies the transition guidance related to certain interim disclosures provided in the year of adoption. The guidance is effective for fiscal years beginning after December 15, 2019 and interim reporting periods beginning after December 15, 2020. The adoption of this guidance is not expected to have a significant impact on the Company’s consolidated financial statements. |
Subsequent Events | Subsequent Events Subsequent events have been evaluated through August 8, 2019, which is the date the consolidated financial statements were available to be issued. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share | |
Schedule of numerators and denominators for basic and diluted earnings per share computations | The following table presents the numerators and denominators for basic and diluted earnings per share computations for the three and six months ended June 30, 2019 and 2018: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Net Income Available to Common Shareholders $ 8,009 $ 6,746 $ 15,027 $ 12,696 Weighted Average Common Stock Outstanding: Weighted Average Common Stock Outstanding (Basic) 29,703,024 30,059,374 29,899,241 27,919,457 Stock Options 609,015 427,427 610,939 426,387 Weighted Average Common Stock Outstanding (Dilutive) 30,312,039 30,486,801 30,510,180 28,345,844 Basic Earnings per Common Share $ 0.27 $ 0.22 $ 0.50 $ 0.45 Diluted Earnings per Common Share 0.26 0.22 0.49 0.45 |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Securities | |
Summary of the amortized cost and estimated fair value of securities with gross unrealized gains and losses | The following tables present the amortized cost and estimated fair value of securities with gross unrealized gains and losses at June 30, 2019 and December 31, 2018: June 30, 2019 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Securities Available for Sale: U.S. Treasury Securities $ 14,924 $ 18 $ — $ 14,942 Municipal Bonds 98,380 5,118 (58) 103,440 Mortgage-Backed Securities 47,192 611 (161) 47,642 Corporate Securities 33,216 475 (5) 33,686 SBA Securities 42,803 16 (604) 42,215 Total Securities Available for Sale $ 236,515 $ 6,238 $ (828) $ 241,925 December 31, 2018 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Securities Available for Sale: U.S. Treasury Securities $ 17,862 $ 54 $ (19) $ 17,897 Municipal Bonds 117,991 1,257 (1,115) 118,133 Mortgage-Backed Securities 48,816 52 (1,692) 47,176 Corporate Securities 21,170 72 (124) 21,118 SBA Securities 49,876 13 (835) 49,054 Total Securities Available for Sale $ 255,715 $ 1,448 $ (3,785) $ 253,378 |
Summary of fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position | The following tables present the fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2019 and December 31, 2018: Less Than 12 Months 12 Months or Greater Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses June 30, 2019 Municipal Bonds $ — $ — $ 6,633 $ (58) $ 6,633 $ (58) Mortgage-Backed Securities 12,155 (79) 5,759 (82) 17,914 (161) Corporate Securities 1,495 (5) — — 1,495 (5) SBA Securities 1,935 (3) 36,094 (601) 38,029 (604) Total Securities Available for Sale $ 15,585 $ (87) $ 48,486 $ (741) $ 64,071 $ (828) Less Than 12 Months 12 Months or Greater Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses December 31, 2018 U.S. Treasury Securities $ 14,866 $ (19) $ — $ — $ 14,866 $ (19) Municipal Bonds 15,405 (199) 34,172 (916) 49,577 (1,115) Mortgage-Backed Securities 1,751 (21) 41,776 (1,671) 43,527 (1,692) Corporate Securities 9,063 (74) 1,996 (50) 11,059 (124) SBA Securities 28,186 (366) 15,878 (469) 44,064 (835) Total Securities Available for Sale $ 69,271 $ (679) $ 93,822 $ (3,106) $ 163,093 $ (3,785) |
Schedule of contractual maturities of debt | The following is a summary of amortized cost and estimated fair value of debt securities by the lesser of expected call date or contractual maturity as of June 30, 2019. Call date is used when a call of the debt security is expected, which is determined by the Company when the security has a market value above its amortized cost. Contractual maturities will differ from expected maturities for mortgage-backed and SBA securities because borrowers may have the right to call or prepay obligations without penalties. June 30, 2019 Amortized Cost Fair Value Due in One Year or Less $ 25,149 $ 25,219 Due After One Year Through Five Years 36,983 37,797 Due After Five Years Through 10 Years 69,996 73,253 Due After 10 Years 14,392 15,799 Subtotal 146,520 152,068 Mortgage-Backed Securities 47,192 47,642 SBA Securities 42,803 42,215 Totals $ 236,515 $ 241,925 |
Summary of the proceeds from sales of securities available for sale, as well as gross gains and losses | The following is a summary of the proceeds from sales of securities available for sale, as well as gross gains and losses, for the three and six months ended June 30, 2019 and 2018: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Proceeds From Sales of Securities $ 32,159 $ 10,950 $ 40,309 $ 10,950 Gross Gains on Sales 640 53 716 53 Gross Losses on Sales (177) (112) (258) (112) |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Loans | |
Summary of components of loans | The following table presents the components of the loan portfolio at June 30, 2019 and December 31, 2018: June 30, December 31, 2019 2018 Commercial $ 287,804 $ 260,833 Construction and Land Development 195,568 210,041 Real Estate Mortgage: 1-4 Family Mortgage 247,029 226,773 Multifamily 437,198 407,934 CRE Owner Occupied 68,681 64,458 CRE Non-owner Occupied 544,579 490,632 Total Real Estate Mortgage Loans 1,297,487 1,189,797 Consumer and Other 4,044 4,260 Total Loans, Gross 1,784,903 1,664,931 Allowance for Loan Losses (21,362) (20,031) Net Deferred Loan Fees (5,157) (4,515) Total Loans, Net $ 1,758,384 $ 1,640,385 |
Summary of the activity in the allowance for loan losses by segment | The following table presents the activity in the allowance for loan losses, by segment, for the three months ended June 30, 2019 and 2018: Construction CRE CRE and Land 1-‑4 Family Owner Non‑owner Consumer Three Months Ended June 30, 2019 Commercial Development Mortgage Multifamily Occupied Occupied and Other Unallocated Total Allowance for Loan Losses: Beginning Balance $ 3,361 $ 2,097 $ 2,611 $ 4,715 $ 790 $ 6,349 $ 61 $ 623 $ 20,607 Provision for Loan Losses (181) 148 63 279 54 136 5 96 600 Loans Charged-off — — — — — — (3) — (3) Recoveries of Loans 1 1 153 — — — 3 — 158 Total Ending Allowance Balance $ 3,181 $ 2,246 $ 2,827 $ 4,994 $ 844 $ 6,485 $ 66 $ 719 $ 21,362 Three Months Ended June 30, 2018 Allowance for Loan Losses: Beginning Balance $ 2,225 $ 1,765 $ 2,418 $ 3,476 $ 914 $ 5,407 $ 50 $ 866 $ 17,121 Provision for Loan Losses 21 557 146 76 (91) 204 10 (23) 900 Loans Charged-off — (357) — — — — (4) — (361) Recoveries of Loans 2 — 3 — — — 1 — 6 Total Ending Allowance Balance $ 2,248 $ 1,965 $ 2,567 $ 3,552 $ 823 $ 5,611 $ 57 $ 843 $ 17,666 The following table presents the activity in the allowance for loan losses, by segment, for the six months ended June 30, 2019 and 2018: Construction CRE CRE and Land 1-‑4 Family Owner Non‑owner Consumer Six Months Ended June 30, 2019 Commercial Development Mortgage Multifamily Occupied Occupied and Other Unallocated Total Allowance for Loan Losses: Beginning Balance $ 2,898 $ 2,451 $ 2,597 $ 4,644 $ 808 $ 5,872 $ 65 $ 696 $ 20,031 Provision for Loan Losses 299 (206) 68 350 36 613 17 23 1,200 Loans Charged-off (19) — — — — — (20) — (39) Recoveries of Loans 3 1 162 — — — 4 — 170 Total Ending Allowance Balance $ 3,181 $ 2,246 $ 2,827 $ 4,994 $ 844 $ 6,485 $ 66 $ 719 $ 21,362 Six Months Ended June 30, 2018 Allowance for Loan Losses: Beginning Balance $ 2,435 $ 1,892 $ 2,317 $ 3,170 $ 956 $ 5,087 $ 60 $ 585 $ 16,502 Provision for Loan Losses (209) 430 237 382 (133) 524 11 258 1,500 Loans Charged-off — (357) — — — — (16) — (373) Recoveries of Loans 22 — 13 — — — 2 — 37 Total Ending Allowance Balance $ 2,248 $ 1,965 $ 2,567 $ 3,552 $ 823 $ 5,611 $ 57 $ 843 $ 17,666 The following tables present the balance in the allowance for loan losses and the recorded investment in loans, by segment, based on impairment method as of June 30, 2019 and December 31, 2018: Construction CRE CRE and Land 1-‑4 Family Owner Non‑owner Consumer Allowance for Loan Losses at June 30, 2019 Commercial Development Mortgage Multifamily Occupied Occupied and Other Unallocated Total Individually Evaluated for Impairment $ 49 $ — $ 60 $ — $ — $ — $ — $ — $ 109 Collectively Evaluated for Impairment 3,132 2,246 2,767 4,994 844 6,485 66 719 21,253 Totals $ 3,181 $ 2,246 $ 2,827 $ 4,994 $ 844 $ 6,485 $ 66 $ 719 $ 21,362 Allowance for Loan Losses at December 31, 2018 Individually Evaluated for Impairment $ 8 $ — $ 17 $ — $ 22 $ — $ — $ — $ 47 Collectively Evaluated for Impairment 2,890 2,451 2,580 4,644 786 5,872 65 696 19,984 Totals $ 2,898 $ 2,451 $ 2,597 $ 4,644 $ 808 $ 5,872 $ 65 $ 696 $ 20,031 Construction CRE CRE and Land 1-‑4 Family Owner Non‑owner Consumer Loans at June 30, 2019 Commercial Development Mortgage Multifamily Occupied Occupied and Other Total Individually Evaluated for Impairment $ 582 $ 2,751 $ 1,710 $ — $ 338 $ — $ 54 $ 5,435 Collectively Evaluated for Impairment 287,222 192,817 245,319 437,198 68,343 544,579 3,990 1,779,468 Totals $ 287,804 $ 195,568 $ 247,029 $ 437,198 $ 68,681 $ 544,579 $ 4,044 $ 1,784,903 Loans at December 31, 2018 Individually Evaluated for Impairment $ 8 $ 198 $ 1,676 $ — $ 365 $ — $ 58 $ 2,305 Collectively Evaluated for Impairment 260,825 209,843 225,097 407,934 64,093 490,632 4,202 1,662,626 Totals $ 260,833 $ 210,041 $ 226,773 $ 407,934 $ 64,458 $ 490,632 $ 4,260 $ 1,664,931 |
Summary of impaired loans by loan segment | The following table presents information regarding total carrying amounts and total unpaid principal balances of impaired loans by loan segment as June 30, 2019 and December 31, 2018: June 30, 2019 December 31, 2018 Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance Loans With No Related Allowance for Loan Losses: Commercial $ 446 $ 446 $ — $ — $ — $ — Construction and Land Development 2,751 3,360 — 198 807 — Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 155 155 — 157 157 — 1st REM - 1-4 Family 617 617 — 253 253 — 1st REM - Rentals 633 632 — 957 957 — CRE Owner Occupied 338 338 — 209 209 — Consumer and Other 54 75 — 58 78 — Totals 4,994 5,623 — 1,832 2,461 — Loans With An Allowance for Loan Losses: Commercial 136 136 49 8 8 8 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 305 331 60 309 336 17 CRE Owner Occupied — — — 156 156 22 Totals 441 467 109 473 500 47 Grand Totals $ 5,435 $ 6,090 $ 109 $ 2,305 $ 2,961 $ 47 The following table presents information regarding the average balances and interest income recognized on impaired loans by loan segment for the three and six months ended June 30, 2019 and 2018: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Average Interest Average Interest Average Interest Average Interest Investment Recognized Investment Recognized Investment Recognized Investment Recognized Loans With No Related Allowance for Loan Losses: Commercial $ 552 $ 8 $ — $ — $ 565 $ 16 $ — $ — Construction and Land Development 2,796 87 — — 2,899 87 — — Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 156 2 506 1 156 4 509 4 1st REM - 1-4 Family 617 12 376 5 617 12 378 5 1st REM - Rentals 635 9 981 11 1,451 18 986 24 Multifamily — — 65 1 — — 33 1 CRE Owner Occupied 434 6 512 7 441 13 518 14 Consumer and Other 54 — 67 — 55 — 69 — Totals 5,244 124 2,507 25 6,184 150 2,493 48 Loans With An Allowance for Loan Losses: Commercial 137 2 14 — 137 2 14 — Construction and Land Development — — 216 — — — 110 — Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 305 — — — 306 — — — LOCs and 2nd REM - Rentals — — 64 1 — — 64 2 1st REM - Rentals — — — — 191 — 67 1 Multifamily — — — — — — 33 1 CRE Owner Occupied — — 158 2 — — 158 4 Totals 442 2 452 3 634 2 446 8 Grand Totals $ 5,686 $ 126 $ 2,959 $ 28 $ 6,818 $ 152 $ 2,939 $ 56 |
Summary of risk category of loans by loan segment, based on the most recent analysis performed by management | The following tables present the risk category of loans by loan segment as of June 30, 2019 and December 31, 2018, based on the most recent analysis performed by management: June 30, 2019 Pass Watch Substandard Total Commercial $ 287,222 $ — $ 582 $ 287,804 Construction and Land Development 192,672 145 2,751 195,568 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 31,232 138 — 31,370 1st REM - 1-4 Family 40,123 125 796 41,044 LOCs and 2nd REM - Rentals 14,983 498 461 15,942 1st REM - Rentals 156,830 1,390 453 158,673 Multifamily 437,198 — — 437,198 CRE Owner Occupied 66,989 — 1,692 68,681 CRE Non-owner Occupied 541,426 3,153 — 544,579 Consumer and Other 3,967 23 54 4,044 Totals $ 1,772,642 $ 5,472 $ 6,789 $ 1,784,903 December 31, 2018 Pass Watch Substandard Total Commercial $ 260,225 $ 600 $ 8 $ 260,833 Construction and Land Development 207,174 2,669 198 210,041 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 30,669 587 — 31,256 1st REM - 1-4 Family 37,526 126 253 37,905 LOCs and 2nd REM - Rentals 11,341 628 474 12,443 1st REM - Rentals 142,357 1,854 958 145,169 Multifamily 407,934 — — 407,934 CRE Owner Occupied 62,223 — 2,235 64,458 CRE Non-owner Occupied 487,438 3,194 — 490,632 Consumer and Other 4,202 — 58 4,260 Totals $ 1,651,089 $ 9,658 $ 4,184 $ 1,664,931 |
Summary of aging of the recorded investment in past due loans by loan segment | The following tables present the aging of the recorded investment in past due loans by loan segment as of June 30, 2019 and December 31, 2018: Accruing Interest 30-89 Days 90 Days or June 30, 2019 Current Past Due More Past Due Nonaccrual Total Commercial $ 287,765 $ 31 $ — $ 8 $ 287,804 Construction and Land Development 195,330 50 — 188 195,568 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 31,370 — — — 31,370 1st REM - 1-4 Family 41,044 — — — 41,044 LOCs and 2nd REM - Rentals 15,467 170 — 305 15,942 1st REM - Rentals 158,459 214 — — 158,673 Multifamily 437,198 — — — 437,198 CRE Owner Occupied 68,681 — — — 68,681 CRE Non-owner Occupied 544,579 — — — 544,579 Consumer and Other 3,985 5 — 54 4,044 Totals $ 1,783,878 $ 470 $ — $ 555 $ 1,784,903 Accruing Interest 30-89 Days 90 Days or December 31, 2018 Current Past Due More Past Due Nonaccrual Total Commercial $ 260,813 $ 12 $ — $ 8 $ 260,833 Construction and Land Development 209,843 — — 198 210,041 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 30,939 — — 317 31,256 1st REM - 1-4 Family 37,705 200 — — 37,905 LOCs and 2nd REM - Rentals 12,443 — — — 12,443 1st REM - Rentals 145,169 — — — 145,169 Multifamily 407,934 — — — 407,934 CRE Owner Occupied 64,360 98 — — 64,458 CRE Non-owner Occupied 490,632 — — — 490,632 Consumer and Other 4,201 1 — 58 4,260 Totals $ 1,664,039 $ 311 $ — $ 581 $ 1,664,931 |
Deposits (Tables)
Deposits (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Deposits. | |
Schedule of composition of deposits | The following table presents the composition of deposits at June 30, 2019 and December 31, 2018: June 30, December 31, 2019 2018 Transaction Deposits $ 640,516 $ 548,770 Savings and Money Market Deposits 456,447 402,639 Time Deposits 359,338 318,356 Brokered Deposits 242,964 291,169 Totals $ 1,699,265 $ 1,560,934 |
Tax Credit Investments (Tables)
Tax Credit Investments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Tax Credit Investments | |
Summary of investments in qualified affordable housing projects and other tax credit investments | The following table presents the Company’s investments in qualified affordable housing projects and other tax credit investments at June 30, 2019 and December 31, 2018: June 30, 2019 December 31, 2018 Investment Accounting Method Investment Unfunded Commitment (1) Investment Unfunded Commitment Low Income Housing Tax Credit (LIHTC) Proportional Amortization $ 2,292 $ — $ 2,436 $ — Federal Historic Tax Credit (FHTC) Equity 2,425 5,067 1,814 3,226 Total $ 4,717 $ 5,067 $ 4,250 $ 3,226 (1) All commitments are expected to be paid by the Company by December 31, 2020. |
Schedule of amortization expense and tax benefit for qualified affordable housing projects and other tax credit investments | The following table presents the amortization expense and tax benefit recognized for the Company’s qualified affordable housing projects and other tax credit investments for the three and six months ended June 30, 2019 and 2018: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Amortization Expense (1) LIHTC $ 72 $ 67 $ 144 $ 161 FHTC 1,390 — 1,567 — Total $ 1,462 $ 67 $ 1,711 $ 161 Tax Benefit Recognized (2) LIHTC $ (83) $ (66) $ (165) $ (165) FHTC (1,684) — (1,898) — Total $ (1,767) $ (66) $ (2,063) $ (165) (1) The amortization expense for the LIHTC investments are included in income tax expense. The amortization for the FHTC tax credits are included in noninterest expense. (2) All of the tax benefits recognized are included in income tax expense. The tax benefit recognized for the FHTC investments primarily reflects the tax credits generated from the investments, and excludes the net tax expense/benefit of the investments’ income/loss. |
Commitments, Contingencies an_2
Commitments, Contingencies and Credit Risk (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Commitments, Contingencies and Credit Risk | |
Schedule of commitments outstanding | The following commitments were outstanding at June 30, 2019 and December 31, 2018: June 30, December 31, 2019 2018 Unfunded Commitments Under Lines of Credit $ 456,578 $ 395,032 Letters of Credit 78,407 81,053 Totals $ 534,985 $ 476,085 |
Stock Options (Tables)
Stock Options (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Stock Options | |
Summary of valuation assumptions used to determine the fair value of option award | The weighted average assumptions used in the model for valuing stock option grants for the six months ended June 30, 2019, are as follows: June 30, 2019 Dividend Yield — % Expected Life 7 Years Expected Volatility 20.92 % Risk-Free Interest Rate 2.67 % |
Summary of the status of the Company’s stock option plans | The following table presents a summary of the status of the Company’s stock option plans for the six months ended June 30, 2019: June 30, 2019 Weighted Average Shares Exercise Price Outstanding at Beginning of Year 1,807,100 $ 6.24 Granted 10,000 11.15 Exercised (15,400) 4.00 Forfeitures (8,600) 10.65 Outstanding at Period End 1,793,100 $ 6.26 Options Exercisable at Period End 824,700 $ 4.09 |
Summary of information pertaining to options outstanding based on range of exercise price | The following table presents information pertaining to options outstanding at June 30, 2019: Options Outstanding Options Exercisable Number Remaining Number Exercise Price Outstanding Contractual Life Exercise Price Outstanding $ 1.65 7,500 2.4 Years $ 1.65 7,500 2.13 80,000 3.8 Years 2.13 80,000 3.00 490,000 4.5 Years 3.00 490,000 3.58 50,000 5.5 Years 3.58 40,000 7.47 1,030,600 8.3 Years 7.47 202,200 13.22 25,000 8.9 Years 13.22 5,000 12.86 45,000 9.2 Years 12.86 — 12.94 30,000 9.3 Years 12.94 — 11.59 25,000 9.3 Years 11.59 — 11.15 10,000 9.7 Years 11.15 — Totals 1,793,100 7.0 Years $ 6.26 $ 824,700 |
Summary of analysis of nonvested options to purchase shares of the Company’s stock issued and outstanding | The following is an analysis of nonvested options to purchase shares of the Company’s stock issued and outstanding for the six months ended June 30, 2019: Weighted Number of Average Grant Shares Date Fair Value Nonvested Options at December 31, 2018 1,086,000 $ 2.78 Granted 10,000 3.30 Vested (119,000) 1.67 Forfeited (8,600) 2.80 Nonvested Options at June 30, 2019 968,400 $ 2.92 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Regulatory Capital | |
Summary of company and the Bank’s capital amounts and ratios | The following tables present the Company and the Bank’s capital amounts and ratios as of June 30, 2019 and December 31, 2018: Minimum Required For Capital Adequacy To be Well Capitalized For Capital Adequacy Purposes Plus Capital Under Prompt Corrective Actual Purposes Conservation Buffer Action Regulations June 30, 2019 Amount Ratio Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Company (Consolidated): Total Risk-Based Capital $ 264,671 13.70 % $ 154,553 8.00 % $ 202,851 10.50 % N/A N/A Tier 1 Risk-Based Capital 221,806 11.48 115,915 6.00 164,213 8.50 N/A N/A Common Equity Tier 1 Capital 221,806 11.48 86,936 4.50 135,234 7.00 N/A N/A Tier 1 Leverage Ratio 221,806 10.75 82,551 4.00 82,551 4.00 N/A N/A Bank: Total Risk-Based Capital $ 244,419 12.67 % $ 154,339 8.00 % $ 202,569 10.50 % $ 192,923 10.00 % Tier 1 Risk-Based Capital 226,235 11.73 115,754 6.00 163,985 8.50 154,339 8.00 Common Equity Tier 1 Capital 226,235 11.73 86,815 4.50 135,046 7.00 125,400 6.50 Tier 1 Leverage Ratio 226,235 10.99 82,372 4.00 82,372 4.00 102,965 5.00 Minimum Required For Capital Adequacy To be Well Capitalized For Capital Adequacy Purposes Plus Capital Under Prompt Corrective Actual Purposes Conservation Buffer Action Regulations December 31, 2018 Amount Ratio Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Company (Consolidated): Total Risk-Based Capital $ 263,909 14.55 % $ 145,111 8.00 % $ 179,121 9.875 % N/A N/A Tier 1 Risk-Based Capital 218,888 12.07 108,833 6.00 142,844 7.875 N/A N/A Common Equity Tier 1 Capital 218,888 12.07 81,625 4.50 115,635 6.375 N/A N/A Tier 1 Leverage Ratio 218,888 11.23 77,971 4.00 77,971 4.00 N/A N/A Bank: Total Risk-Based Capital $ 230,865 12.76 % $ 144,776 8.00 % $ 178,707 9.875 % $ 180,970 10.00 % Tier 1 Risk-Based Capital 210,474 11.63 108,582 6.00 142,514 7.875 144,776 8.00 Common Equity Tier 1 Capital 210,474 11.63 81,436 4.50 115,368 6.375 117,630 6.50 Tier 1 Leverage Ratio 210,474 10.82 77,795 4.00 77,795 4.00 97,244 5.00 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Measurement | |
Summary of balances of the assets and liabilities measured at fair value on a recurring basis | The following tables present the balances of the assets and liabilities measured at fair value on a recurring basis as of June 30, 2019 and December 31, 2018: June 30, 2019 Level 1 Level 2 Level 3 Total Fair Value of Financial Assets: Securities Available for Sale: U.S. Treasury Securities $ 14,942 $ — $ — $ 14,942 Municipal Bonds — 103,440 — 103,440 Mortgage-Backed Securities — 47,642 — 47,642 Corporate Securities — 33,686 — 33,686 SBA Securities — 42,215 — 42,215 Interest Rate Swap — 115 — 115 Total Fair Value of Financial Assets $ 14,942 $ 227,098 $ — $ 242,040 Fair Value of Financial Liabilities: Interest Rate Swaps $ — $ 780 $ — $ 780 Total Fair Value of Financial Liabilities $ — $ 780 $ — $ 780 December 31, 2018 Level 1 Level 2 Level 3 Total Fair Value of Financial Assets: Securities Available for Sale: U.S. Treasury Securities $ 17,897 $ — $ — $ 17,897 Municipal Bonds — 118,133 — 118,133 Mortgage-Backed Securities — 47,176 — 47,176 Corporate Securities — 21,118 — 21,118 SBA Securities — 49,054 — 49,054 Interest Rate Swap — 352 — 352 Total Fair Value of Financial Assets $ 17,897 $ 235,833 $ — $ 253,730 |
Summary of net impairment losses related to nonrecurring fair value measurements of certain asset | The following tables present net impairment losses related to nonrecurring fair value measurements of certain assets at June 30, 2019 and December 31, 2018: June 30, 2019 Level 1 Level 2 Level 3 Loss Impaired Loans $ — $ 332 $ — $ 109 Foreclosed Assets — 1,033 — — Totals $ — $ 1,365 $ — $ 109 December 31, 2018 Level 1 Level 2 Level 3 Loss Impaired Loans $ — $ 426 $ — $ 396 Totals $ — $ 426 $ — $ 396 |
Summary of carrying amount and estimated fair values of financial instruments | The following tables present the carrying amount and estimated fair values of financial instruments at June 30, 2019 and December 31, 2018: June 30, 2019 Fair Value Hierarchy Carrying Estimated Amount Level 1 Level 2 Level 3 Fair Value Financial Assets: Cash and Due From Banks $ 66,389 $ 66,389 $ — $ — $ 66,389 Bank-Owned Certificates of Deposit 2,699 — 2,725 — 2,725 Securities Available for Sale 241,925 14,942 226,983 — 241,925 FHLB Stock, at Cost 8,064 — 8,064 — 8,064 Loans, Net 1,758,384 — 1,756,716 — 1,756,716 Accrued Interest Receivable 7,583 — 7,583 — 7,583 Interest Rate Swap 115 — 115 — 115 Financial Liabilities: Deposits $ 1,699,265 $ — $ 1,705,562 $ — $ 1,705,562 Notes Payable 14,000 — 14,157 — 14,157 FHLB Advances 142,500 — 146,616 — 146,616 Subordinated Debentures 24,681 — 25,715 — 25,715 Accrued Interest Payable 2,109 — 2,109 — 2,109 Interest Rate Swap 780 — 780 — 780 December 31, 2018 Fair Value Hierarchy Carrying Estimated Amount Level 1 Level 2 Level 3 Fair Value Financial Assets: Cash and Due From Banks $ 28,444 $ 28,444 $ — $ — $ 28,444 Bank-Owned Certificates of Deposit 3,305 — 3,292 — 3,292 Securities Available for Sale 253,378 17,897 235,481 — 253,378 FHLB Stock, at Cost 7,614 — 7,614 — 7,614 Loans, Net 1,640,385 — 1,634,196 — 1,634,196 Accrued Interest Receivable 6,589 — 6,589 — 6,589 Interest Rate Swap 352 — 352 — 352 Financial Liabilities: Deposits $ 1,560,934 $ — $ 1,560,488 $ — $ 1,560,488 Federal Funds Purchased 18,000 — 18,000 — 18,000 Notes Payable 15,000 — 15,551 — 15,551 FHLB Advances 124,000 — 124,952 — 124,952 Subordinated Debentures 24,630 — 25,365 — 25,365 Accrued Interest Payable 1,806 — 1,806 — 1,806 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share | ||||
Net Income Available to Common Shareholders | $ 8,009 | $ 6,746 | $ 15,027 | $ 12,696 |
Weighted Average Common Stock Outstanding: | ||||
Weighted Average Common Stock Outstanding (Basic) | 29,703,024 | 30,059,374 | 29,899,241 | 27,919,457 |
Stock Options | 609,015 | 427,427 | 610,939 | 426,387 |
Weighted Average Common Stock Outstanding (Dilutive) | 30,312,039 | 30,486,801 | 30,510,180 | 28,345,844 |
Basic Earnings per Common Share (in dollars per share) | $ 0.27 | $ 0.22 | $ 0.50 | $ 0.45 |
Diluted Earnings per Common Share (in dollars per share) | $ 0.26 | $ 0.22 | $ 0.49 | $ 0.45 |
Securities - Securities Availab
Securities - Securities Available for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
The amortized cost and estimated fair value of securities with gross unrealized gains and losses | ||
Total | $ 236,515 | $ 255,715 |
Gross Unrealized Gains | 6,238 | 1,448 |
Gross Unrealized Losses | (828) | (3,785) |
Total | 241,925 | 253,378 |
U.S. Treasury Securities | ||
The amortized cost and estimated fair value of securities with gross unrealized gains and losses | ||
Total | 14,924 | 17,862 |
Gross Unrealized Gains | 18 | 54 |
Gross Unrealized Losses | (19) | |
Total | 14,942 | 17,897 |
Municipal Bonds | ||
The amortized cost and estimated fair value of securities with gross unrealized gains and losses | ||
Total | 98,380 | 117,991 |
Gross Unrealized Gains | 5,118 | 1,257 |
Gross Unrealized Losses | (58) | (1,115) |
Total | 103,440 | 118,133 |
Mortgage-Backed Securities | ||
The amortized cost and estimated fair value of securities with gross unrealized gains and losses | ||
Total | 47,192 | 48,816 |
Gross Unrealized Gains | 611 | 52 |
Gross Unrealized Losses | (161) | (1,692) |
Total | 47,642 | 47,176 |
Corporate Securities | ||
The amortized cost and estimated fair value of securities with gross unrealized gains and losses | ||
Total | 33,216 | 21,170 |
Gross Unrealized Gains | 475 | 72 |
Gross Unrealized Losses | (5) | (124) |
Total | 33,686 | 21,118 |
SBA Securities | ||
The amortized cost and estimated fair value of securities with gross unrealized gains and losses | ||
Total | 42,803 | 49,876 |
Gross Unrealized Gains | 16 | 13 |
Gross Unrealized Losses | (604) | (835) |
Total | $ 42,215 | $ 49,054 |
Securities - Continuous Unreali
Securities - Continuous Unrealized Loss Position (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019USD ($)security | Dec. 31, 2018USD ($)security | |
Fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position | ||
Less Than 12 Months, Fair Value | $ 15,585 | $ 69,271 |
Less Than 12 Months, Unrealized Losses | (87) | (679) |
12 Months or Greater, Fair Value | 48,486 | 93,822 |
12 Months or Greater, Unrealized Losses | (741) | (3,106) |
Fair Value | 64,071 | 163,093 |
Unrealized Losses | $ (828) | $ (3,785) |
Number of debt securities with unrealized losses | security | 90 | 195 |
Percentage of aggregate depreciation from amortized cost basis | 1.20% | 2.30% |
U.S. Treasury Securities | ||
Fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position | ||
Less Than 12 Months, Fair Value | $ 14,866 | |
Less Than 12 Months, Unrealized Losses | (19) | |
Fair Value | 14,866 | |
Unrealized Losses | (19) | |
Municipal Bonds | ||
Fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position | ||
Less Than 12 Months, Fair Value | 15,405 | |
Less Than 12 Months, Unrealized Losses | (199) | |
12 Months or Greater, Fair Value | $ 6,633 | 34,172 |
12 Months or Greater, Unrealized Losses | (58) | (916) |
Fair Value | 6,633 | 49,577 |
Unrealized Losses | (58) | (1,115) |
Mortgage-Backed Securities | ||
Fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position | ||
Less Than 12 Months, Fair Value | 12,155 | 1,751 |
Less Than 12 Months, Unrealized Losses | (79) | (21) |
12 Months or Greater, Fair Value | 5,759 | 41,776 |
12 Months or Greater, Unrealized Losses | (82) | (1,671) |
Fair Value | 17,914 | 43,527 |
Unrealized Losses | (161) | (1,692) |
Corporate Securities | ||
Fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position | ||
Less Than 12 Months, Fair Value | 1,495 | 9,063 |
Less Than 12 Months, Unrealized Losses | (5) | (74) |
12 Months or Greater, Fair Value | 1,996 | |
12 Months or Greater, Unrealized Losses | (50) | |
Fair Value | 1,495 | 11,059 |
Unrealized Losses | (5) | (124) |
SBA Securities | ||
Fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position | ||
Less Than 12 Months, Fair Value | 1,935 | 28,186 |
Less Than 12 Months, Unrealized Losses | (3) | (366) |
12 Months or Greater, Fair Value | 36,094 | 15,878 |
12 Months or Greater, Unrealized Losses | (601) | (469) |
Fair Value | 38,029 | 44,064 |
Unrealized Losses | $ (604) | $ (835) |
Securities - Contractual Maturi
Securities - Contractual Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Contractual maturities, amortized cost | ||
Due in One Year or Less | $ 25,149 | |
Due After One Year Through Five Years | 36,983 | |
Due After Five Years Through 10 Years | 69,996 | |
Due After 10 Years | 14,392 | |
Subtotal | 146,520 | |
Totals | 236,515 | $ 255,715 |
Contractual maturities, fair value | ||
Due in One Year or Less | 25,219 | |
Due After One Year Through Five Years | 37,797 | |
Due After Five Years Through 10 Years | 73,253 | |
Due After 10 Years | 15,799 | |
Subtotal | 152,068 | |
Totals | 241,925 | 253,378 |
Mortgage-Backed Securities | ||
Contractual maturities, amortized cost | ||
Contractual securities | 47,192 | |
Totals | 47,192 | 48,816 |
Contractual maturities, fair value | ||
Contractual securities | 47,642 | |
Totals | 47,642 | 47,176 |
SBA Securities | ||
Contractual maturities, amortized cost | ||
Contractual securities | 42,803 | |
Totals | 42,803 | 49,876 |
Contractual maturities, fair value | ||
Contractual securities | 42,215 | |
Totals | $ 42,215 | $ 49,054 |
Securities - Available for Sale
Securities - Available for Sale Securities Gross Realized Gain Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Summary of the proceeds from sales of securities available for sale, as well as gross gains and losses | ||||
Proceeds From Sales of Securities | $ 32,159 | $ 10,950 | $ 40,309 | $ 10,950 |
Gross Gains on Sales | 640 | 53 | 716 | 53 |
Gross Losses on Sales | $ (177) | $ (112) | $ (258) | $ (112) |
Loans - Components of loans (De
Loans - Components of loans (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Components of loans | ||||||
Total Loans, Gross | $ 1,784,903 | $ 1,664,931 | ||||
Allowance for Loan Losses | (21,362) | $ (20,607) | (20,031) | $ (17,666) | $ (17,121) | $ (16,502) |
Net Deferred Loan Fees | (5,157) | (4,515) | ||||
Total Loans, Net | 1,758,384 | 1,640,385 | ||||
Commercial | ||||||
Components of loans | ||||||
Total Loans, Gross | 287,804 | 260,833 | ||||
Allowance for Loan Losses | (3,181) | (3,361) | (2,898) | (2,248) | (2,225) | (2,435) |
Construction and Land Development | ||||||
Components of loans | ||||||
Total Loans, Gross | 195,568 | 210,041 | ||||
Allowance for Loan Losses | (2,246) | (2,097) | (2,451) | (1,965) | (1,765) | (1,892) |
Real Estate Mortgage | ||||||
Components of loans | ||||||
Total Loans, Gross | 1,297,487 | 1,189,797 | ||||
1-4 Family Mortgage | ||||||
Components of loans | ||||||
Total Loans, Gross | 247,029 | 226,773 | ||||
Allowance for Loan Losses | (2,827) | (2,611) | (2,597) | (2,567) | (2,418) | (2,317) |
Multifamily | ||||||
Components of loans | ||||||
Total Loans, Gross | 437,198 | 407,934 | ||||
Allowance for Loan Losses | (4,994) | (4,715) | (4,644) | (3,552) | (3,476) | (3,170) |
CRE Owner Occupied | ||||||
Components of loans | ||||||
Total Loans, Gross | 68,681 | 64,458 | ||||
Allowance for Loan Losses | (844) | (790) | (808) | (823) | (914) | (956) |
CRE Non-owner Occupied | ||||||
Components of loans | ||||||
Total Loans, Gross | 544,579 | 490,632 | ||||
Allowance for Loan Losses | (6,485) | (6,349) | (5,872) | (5,611) | (5,407) | (5,087) |
Consumer and other | ||||||
Components of loans | ||||||
Total Loans, Gross | 4,044 | 4,260 | ||||
Allowance for Loan Losses | $ (66) | $ (61) | $ (65) | $ (57) | $ (50) | $ (60) |
Loans - Allowance for loan loss
Loans - Allowance for loan losses by segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Jun. 30, 2019 | Dec. 31, 2018 | |
Allowance for Loan Losses: | |||||||
Beginning Balance | $ 20,607 | $ 17,121 | $ 20,031 | $ 16,502 | $ 16,502 | ||
Provision for Loan Losses | 600 | 900 | 1,200 | 1,500 | |||
Loans Charged-off | (3) | (361) | (39) | (373) | |||
Recoveries of Loans | 158 | 6 | 170 | 37 | |||
Total Ending Allowance Balance | 21,362 | 17,666 | 21,362 | 17,666 | 20,031 | ||
Allowance for loan losses and the recorded investment | |||||||
Allowance for Loan Losses and Loans, Individually Evaluated for Impairment | $ 109 | $ 47 | |||||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 21,253 | 19,984 | |||||
Loans and Leases Receivable, Allowance, Total | 20,607 | 17,121 | 20,031 | 16,502 | 16,502 | 21,362 | 20,031 |
Loans, Individually Evaluated for Impairment | 5,435 | 2,305 | |||||
Loans, Collectively Evaluated for Impairment | 1,779,468 | 1,662,626 | |||||
Totals | 1,784,903 | 1,664,931 | |||||
Commercial | |||||||
Allowance for Loan Losses: | |||||||
Beginning Balance | 3,361 | 2,225 | 2,898 | 2,435 | 2,435 | ||
Provision for Loan Losses | (181) | 21 | 299 | (209) | |||
Loans Charged-off | (19) | ||||||
Recoveries of Loans | 1 | 2 | 3 | 22 | |||
Total Ending Allowance Balance | 3,181 | 2,248 | 3,181 | 2,248 | 2,898 | ||
Allowance for loan losses and the recorded investment | |||||||
Allowance for Loan Losses and Loans, Individually Evaluated for Impairment | 49 | 8 | |||||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 3,132 | 2,890 | |||||
Loans and Leases Receivable, Allowance, Total | 3,361 | 2,225 | 2,898 | 2,435 | 2,435 | 3,181 | 2,898 |
Loans, Individually Evaluated for Impairment | 582 | 8 | |||||
Loans, Collectively Evaluated for Impairment | 287,222 | 260,825 | |||||
Totals | 287,804 | 260,833 | |||||
Construction and Land Development | |||||||
Allowance for Loan Losses: | |||||||
Beginning Balance | 2,097 | 1,765 | 2,451 | 1,892 | 1,892 | ||
Provision for Loan Losses | 148 | 557 | (206) | 430 | |||
Loans Charged-off | (357) | (357) | |||||
Recoveries of Loans | 1 | 1 | |||||
Total Ending Allowance Balance | 2,246 | 1,965 | 2,246 | 1,965 | 2,451 | ||
Allowance for loan losses and the recorded investment | |||||||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 2,246 | 2,451 | |||||
Loans and Leases Receivable, Allowance, Total | 2,097 | 1,765 | 2,451 | 1,892 | 1,892 | 2,246 | 2,451 |
Loans, Individually Evaluated for Impairment | 2,751 | 198 | |||||
Loans, Collectively Evaluated for Impairment | 192,817 | 209,843 | |||||
Totals | 195,568 | 210,041 | |||||
1-4 Family Mortgage | |||||||
Allowance for Loan Losses: | |||||||
Beginning Balance | 2,611 | 2,418 | 2,597 | 2,317 | 2,317 | ||
Provision for Loan Losses | 63 | 146 | 68 | 237 | |||
Recoveries of Loans | 153 | 3 | 162 | 13 | |||
Total Ending Allowance Balance | 2,827 | 2,567 | 2,827 | 2,567 | 2,597 | ||
Allowance for loan losses and the recorded investment | |||||||
Allowance for Loan Losses and Loans, Individually Evaluated for Impairment | 60 | 17 | |||||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 2,767 | 2,580 | |||||
Loans and Leases Receivable, Allowance, Total | 2,611 | 2,418 | 2,597 | 2,317 | 2,317 | 2,827 | 2,597 |
Loans, Individually Evaluated for Impairment | 1,710 | 1,676 | |||||
Loans, Collectively Evaluated for Impairment | 245,319 | 225,097 | |||||
Totals | 247,029 | 226,773 | |||||
Multifamily | |||||||
Allowance for Loan Losses: | |||||||
Beginning Balance | 4,715 | 3,476 | 4,644 | 3,170 | 3,170 | ||
Provision for Loan Losses | 279 | 76 | 350 | 382 | |||
Total Ending Allowance Balance | 4,994 | 3,552 | 4,994 | 3,552 | 4,644 | ||
Allowance for loan losses and the recorded investment | |||||||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 4,994 | 4,644 | |||||
Loans and Leases Receivable, Allowance, Total | 4,715 | 3,476 | 4,644 | 3,170 | 3,170 | 4,994 | 4,644 |
Loans, Collectively Evaluated for Impairment | 437,198 | 407,934 | |||||
Totals | 437,198 | 407,934 | |||||
CRE Owner Occupied | |||||||
Allowance for Loan Losses: | |||||||
Beginning Balance | 790 | 914 | 808 | 956 | 956 | ||
Provision for Loan Losses | 54 | (91) | 36 | (133) | |||
Total Ending Allowance Balance | 844 | 823 | 844 | 823 | 808 | ||
Allowance for loan losses and the recorded investment | |||||||
Allowance for Loan Losses and Loans, Individually Evaluated for Impairment | 22 | ||||||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 844 | 786 | |||||
Loans and Leases Receivable, Allowance, Total | 790 | 914 | 808 | 956 | 956 | 844 | 808 |
Loans, Individually Evaluated for Impairment | 338 | 365 | |||||
Loans, Collectively Evaluated for Impairment | 68,343 | 64,093 | |||||
Totals | 68,681 | 64,458 | |||||
CRE Non-owner Occupied | |||||||
Allowance for Loan Losses: | |||||||
Beginning Balance | 6,349 | 5,407 | 5,872 | 5,087 | 5,087 | ||
Provision for Loan Losses | 136 | 204 | 613 | 524 | |||
Total Ending Allowance Balance | 6,485 | 5,611 | 6,485 | 5,611 | 5,872 | ||
Allowance for loan losses and the recorded investment | |||||||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 6,485 | 5,872 | |||||
Loans and Leases Receivable, Allowance, Total | 6,349 | 5,407 | 5,872 | 5,087 | 5,087 | 6,485 | 5,872 |
Loans, Collectively Evaluated for Impairment | 544,579 | 490,632 | |||||
Totals | 544,579 | 490,632 | |||||
Consumer and other | |||||||
Allowance for Loan Losses: | |||||||
Beginning Balance | 61 | 50 | 65 | 60 | 60 | ||
Provision for Loan Losses | 5 | 10 | 17 | 11 | |||
Loans Charged-off | (3) | (4) | (20) | (16) | |||
Recoveries of Loans | 3 | 1 | 4 | 2 | |||
Total Ending Allowance Balance | 66 | 57 | 66 | 57 | 65 | ||
Allowance for loan losses and the recorded investment | |||||||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 66 | 65 | |||||
Loans and Leases Receivable, Allowance, Total | 61 | 50 | 65 | 60 | 60 | 66 | 65 |
Loans, Individually Evaluated for Impairment | 54 | 58 | |||||
Loans, Collectively Evaluated for Impairment | 3,990 | 4,202 | |||||
Totals | 4,044 | 4,260 | |||||
Unallocated | |||||||
Allowance for Loan Losses: | |||||||
Beginning Balance | 623 | 866 | 696 | 585 | 585 | ||
Provision for Loan Losses | 96 | (23) | 23 | 258 | |||
Total Ending Allowance Balance | 719 | 843 | 719 | 843 | 696 | ||
Allowance for loan losses and the recorded investment | |||||||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 719 | 696 | |||||
Loans and Leases Receivable, Allowance, Total | $ 623 | $ 866 | $ 696 | $ 585 | $ 585 | $ 719 | $ 696 |
Loans - Impaired loans by loan
Loans - Impaired loans by loan segment (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Impaired loans by loan segment | ||
Loans With No Related Allowance for Loan Losses, Recorded Investment | $ 4,994 | $ 1,832 |
Loans With No Related Allowance for Loan Losses, Principal Balance | 5,623 | 2,461 |
Total Recorded Investment | 5,435 | 2,305 |
Total Principal Balance | 6,090 | 2,961 |
Related Allowance | 109 | 47 |
Commercial | ||
Impaired loans by loan segment | ||
Loans With No Related Allowance for Loan Losses, Recorded Investment | 446 | |
Loans With No Related Allowance for Loan Losses, Principal Balance | 446 | |
Loans With An Allowance for Loan Losses, Recorded Investment | 136 | 8 |
Loans With An Allowance for Loan Losses, Principal Balance | 136 | 8 |
Related Allowance | 49 | 8 |
Construction and Land Development | ||
Impaired loans by loan segment | ||
Loans With No Related Allowance for Loan Losses, Recorded Investment | 2,751 | 198 |
Loans With No Related Allowance for Loan Losses, Principal Balance | 3,360 | 807 |
Real Estate Mortgage | ||
Impaired loans by loan segment | ||
Loans With An Allowance for Loan Losses, Recorded Investment | 441 | 473 |
Loans With An Allowance for Loan Losses, Principal Balance | 467 | 500 |
Related Allowance | 109 | 47 |
HELOC and 1-4 Family Junior Mortgage | ||
Impaired loans by loan segment | ||
Loans With No Related Allowance for Loan Losses, Recorded Investment | 155 | 157 |
Loans With No Related Allowance for Loan Losses, Principal Balance | 155 | 157 |
Loans With An Allowance for Loan Losses, Recorded Investment | 305 | 309 |
Loans With An Allowance for Loan Losses, Principal Balance | 331 | 336 |
Related Allowance | 60 | 17 |
1st REM - 1-4 Family | ||
Impaired loans by loan segment | ||
Loans With No Related Allowance for Loan Losses, Recorded Investment | 617 | 253 |
Loans With No Related Allowance for Loan Losses, Principal Balance | 617 | 253 |
1st REM - Rentals | ||
Impaired loans by loan segment | ||
Loans With No Related Allowance for Loan Losses, Recorded Investment | 633 | 957 |
Loans With No Related Allowance for Loan Losses, Principal Balance | 632 | 957 |
Consumer and other | ||
Impaired loans by loan segment | ||
Loans With No Related Allowance for Loan Losses, Recorded Investment | 54 | 58 |
Loans With No Related Allowance for Loan Losses, Principal Balance | 75 | 78 |
CRE Owner Occupied | ||
Impaired loans by loan segment | ||
Loans With No Related Allowance for Loan Losses, Recorded Investment | 338 | 209 |
Loans With No Related Allowance for Loan Losses, Principal Balance | $ 338 | 209 |
Loans With An Allowance for Loan Losses, Recorded Investment | 156 | |
Loans With An Allowance for Loan Losses, Principal Balance | 156 | |
Related Allowance | $ 22 |
Loans - Average balances and in
Loans - Average balances and interest income recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Impaired loans by loan segment | ||||
Loans With No Related Allowance for Loan Losses, Average Investment | $ 5,244 | $ 2,507 | $ 6,184 | $ 2,493 |
Loans With No Related Allowance for Loan Losses, Interest Recognized | 124 | 25 | 150 | 48 |
Total Average Investment | 5,686 | 2,959 | 6,818 | 2,939 |
Total Interest Recognized | 126 | 28 | 152 | 56 |
Commercial | ||||
Impaired loans by loan segment | ||||
Loans With No Related Allowance for Loan Losses, Average Investment | 552 | 565 | ||
Loans With No Related Allowance for Loan Losses, Interest Recognized | 8 | 16 | ||
Loans With An Allowance for Loan Losses, Average Investment | 137 | 14 | 137 | 14 |
Loans With An Allowance for Loan Losses, Interest Recognized | 2 | 2 | ||
Construction and Land Development | ||||
Impaired loans by loan segment | ||||
Loans With No Related Allowance for Loan Losses, Average Investment | 2,796 | 2,899 | ||
Loans With No Related Allowance for Loan Losses, Interest Recognized | 87 | 87 | ||
Loans With An Allowance for Loan Losses, Average Investment | 216 | 110 | ||
Real Estate Mortgage | ||||
Impaired loans by loan segment | ||||
Loans With An Allowance for Loan Losses, Average Investment | 442 | 452 | 634 | 446 |
Loans With An Allowance for Loan Losses, Interest Recognized | 2 | 3 | 2 | 8 |
HELOC and 1-4 Family Junior Mortgage | ||||
Impaired loans by loan segment | ||||
Loans With No Related Allowance for Loan Losses, Average Investment | 156 | 506 | 156 | 509 |
Loans With No Related Allowance for Loan Losses, Interest Recognized | 2 | 1 | 4 | 4 |
Loans With An Allowance for Loan Losses, Average Investment | 305 | 306 | ||
LOCs and 2nd REM - Rentals | ||||
Impaired loans by loan segment | ||||
Loans With An Allowance for Loan Losses, Average Investment | 64 | 64 | ||
Loans With An Allowance for Loan Losses, Interest Recognized | 1 | 2 | ||
1st REM - 1-4 Family | ||||
Impaired loans by loan segment | ||||
Loans With No Related Allowance for Loan Losses, Average Investment | 617 | 376 | 617 | 378 |
Loans With No Related Allowance for Loan Losses, Interest Recognized | 12 | 5 | 12 | 5 |
1st REM - Rentals | ||||
Impaired loans by loan segment | ||||
Loans With No Related Allowance for Loan Losses, Average Investment | 635 | 981 | 1,451 | 986 |
Loans With No Related Allowance for Loan Losses, Interest Recognized | 9 | 11 | 18 | 24 |
Loans With An Allowance for Loan Losses, Average Investment | 191 | 67 | ||
Loans With An Allowance for Loan Losses, Interest Recognized | 1 | |||
Multifamily | ||||
Impaired loans by loan segment | ||||
Loans With No Related Allowance for Loan Losses, Average Investment | 65 | 33 | ||
Loans With No Related Allowance for Loan Losses, Interest Recognized | 1 | 1 | ||
Loans With An Allowance for Loan Losses, Average Investment | 33 | |||
Loans With An Allowance for Loan Losses, Interest Recognized | 1 | |||
CRE Owner Occupied | ||||
Impaired loans by loan segment | ||||
Loans With No Related Allowance for Loan Losses, Average Investment | 434 | 512 | 441 | 518 |
Loans With No Related Allowance for Loan Losses, Interest Recognized | 6 | 7 | 13 | 14 |
Loans With An Allowance for Loan Losses, Average Investment | 158 | 158 | ||
Loans With An Allowance for Loan Losses, Interest Recognized | 2 | 4 | ||
Consumer and other | ||||
Impaired loans by loan segment | ||||
Loans With No Related Allowance for Loan Losses, Average Investment | $ 54 | $ 67 | $ 55 | $ 69 |
Loans - Risk category of loans
Loans - Risk category of loans by loan segment (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | $ 1,784,903 | $ 1,664,931 |
Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 1,772,642 | 1,651,089 |
Watch | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 5,472 | 9,658 |
Substandard | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 6,789 | 4,184 |
Commercial | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 287,804 | 260,833 |
Commercial | Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 287,222 | 260,225 |
Commercial | Watch | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 600 | |
Commercial | Substandard | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 582 | 8 |
Construction and Land Development | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 195,568 | 210,041 |
Construction and Land Development | Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 192,672 | 207,174 |
Construction and Land Development | Watch | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 145 | 2,669 |
Construction and Land Development | Substandard | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 2,751 | 198 |
HELOC and 1-4 Family Junior Mortgage | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 31,370 | 31,256 |
HELOC and 1-4 Family Junior Mortgage | Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 31,232 | 30,669 |
HELOC and 1-4 Family Junior Mortgage | Watch | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 138 | 587 |
1st REM - 1-4 Family | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 41,044 | 37,905 |
1st REM - 1-4 Family | Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 40,123 | 37,526 |
1st REM - 1-4 Family | Watch | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 125 | 126 |
1st REM - 1-4 Family | Substandard | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 796 | 253 |
LOCs and 2nd REM - Rentals | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 15,942 | 12,443 |
LOCs and 2nd REM - Rentals | Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 14,983 | 11,341 |
LOCs and 2nd REM - Rentals | Watch | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 498 | 628 |
LOCs and 2nd REM - Rentals | Substandard | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 461 | 474 |
1st REM - Rentals | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 158,673 | 145,169 |
1st REM - Rentals | Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 156,830 | 142,357 |
1st REM - Rentals | Watch | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 1,390 | 1,854 |
1st REM - Rentals | Substandard | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 453 | 958 |
Multifamily | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 437,198 | 407,934 |
Multifamily | Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 437,198 | 407,934 |
CRE Owner Occupied | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 68,681 | 64,458 |
CRE Owner Occupied | Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 66,989 | 62,223 |
CRE Owner Occupied | Substandard | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 1,692 | 2,235 |
CRE Non-owner Occupied | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 544,579 | 490,632 |
CRE Non-owner Occupied | Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 541,426 | 487,438 |
CRE Non-owner Occupied | Watch | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 3,153 | 3,194 |
Consumer and other | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 4,044 | 4,260 |
Consumer and other | Pass | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 3,967 | 4,202 |
Consumer and other | Watch | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | 23 | |
Consumer and other | Substandard | ||
Risk category of loans by loan segment, based on the most recent analysis performed by management | ||
Totals | $ 54 | $ 58 |
Loans - Recorded investment in
Loans - Recorded investment in past due loans by loan segment (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Aging of the recorded investment in past due loans by loan segment | ||
Accruing Interest, Current | $ 1,783,878 | $ 1,664,039 |
Nonaccrual | 555 | 581 |
Totals | 1,784,903 | 1,664,931 |
30-89 Days Past Due | ||
Aging of the recorded investment in past due loans by loan segment | ||
Accruing Interest, past due | 470 | 311 |
Commercial | ||
Aging of the recorded investment in past due loans by loan segment | ||
Accruing Interest, Current | 287,765 | 260,813 |
Nonaccrual | 8 | 8 |
Totals | 287,804 | 260,833 |
Commercial | 30-89 Days Past Due | ||
Aging of the recorded investment in past due loans by loan segment | ||
Accruing Interest, past due | 31 | 12 |
Construction and Land Development | ||
Aging of the recorded investment in past due loans by loan segment | ||
Accruing Interest, Current | 195,330 | 209,843 |
Nonaccrual | 188 | 198 |
Totals | 195,568 | 210,041 |
Construction and Land Development | 30-89 Days Past Due | ||
Aging of the recorded investment in past due loans by loan segment | ||
Accruing Interest, past due | 50 | |
HELOC and 1-4 Family Junior Mortgage | ||
Aging of the recorded investment in past due loans by loan segment | ||
Accruing Interest, Current | 31,370 | 30,939 |
Nonaccrual | 317 | |
Totals | 31,370 | 31,256 |
1st REM - 1-4 Family | ||
Aging of the recorded investment in past due loans by loan segment | ||
Accruing Interest, Current | 41,044 | 37,705 |
Totals | 41,044 | 37,905 |
1st REM - 1-4 Family | 30-89 Days Past Due | ||
Aging of the recorded investment in past due loans by loan segment | ||
Accruing Interest, past due | 200 | |
LOCs and 2nd REM - Rentals | ||
Aging of the recorded investment in past due loans by loan segment | ||
Accruing Interest, Current | 15,467 | 12,443 |
Nonaccrual | 305 | |
Totals | 15,942 | 12,443 |
LOCs and 2nd REM - Rentals | 30-89 Days Past Due | ||
Aging of the recorded investment in past due loans by loan segment | ||
Accruing Interest, past due | 170 | |
1st REM - Rentals | ||
Aging of the recorded investment in past due loans by loan segment | ||
Accruing Interest, Current | 158,459 | 145,169 |
Totals | 158,673 | 145,169 |
1st REM - Rentals | 30-89 Days Past Due | ||
Aging of the recorded investment in past due loans by loan segment | ||
Accruing Interest, past due | 214 | |
Multifamily | ||
Aging of the recorded investment in past due loans by loan segment | ||
Accruing Interest, Current | 437,198 | 407,934 |
Totals | 437,198 | 407,934 |
CRE Owner Occupied | ||
Aging of the recorded investment in past due loans by loan segment | ||
Accruing Interest, Current | 68,681 | 64,360 |
Totals | 68,681 | 64,458 |
CRE Owner Occupied | 30-89 Days Past Due | ||
Aging of the recorded investment in past due loans by loan segment | ||
Accruing Interest, past due | 98 | |
CRE Non-owner Occupied | ||
Aging of the recorded investment in past due loans by loan segment | ||
Accruing Interest, Current | 544,579 | 490,632 |
Totals | 544,579 | 490,632 |
Consumer and other | ||
Aging of the recorded investment in past due loans by loan segment | ||
Accruing Interest, Current | 3,985 | 4,201 |
Nonaccrual | 54 | 58 |
Totals | 4,044 | 4,260 |
Consumer and other | 30-89 Days Past Due | ||
Aging of the recorded investment in past due loans by loan segment | ||
Accruing Interest, past due | $ 5 | $ 1 |
Loans - Summary of loans modifi
Loans - Summary of loans modified in TDRs and those restructurings (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | |
Loans | ||
Troubled Debt Restructurings, Number of Loans | 4 | 3 |
New Troubled Debt Restructurings, Post-Modification Outstanding Balance | $ | $ 522 | $ 437 |
New Troubled Debt Restructurings, Number of Loans | 1 | |
Troubled Debt Restructurings That Subsequently Defaulted Within 12 Months of The Restructure Date, Number of Loans | 0 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Deposits, by Type [Abstract] | ||
Transaction Deposits | $ 640,516 | $ 548,770 |
Savings and Money Market Deposits | 456,447 | 402,639 |
Time Deposits | 359,338 | 318,356 |
Brokered Deposits | 242,964 | 291,169 |
Total Deposits | $ 1,699,265 | $ 1,560,934 |
Tax Credit Investments - Invest
Tax Credit Investments - Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Investments in qualified affordable housing projects and other tax credit investments | |||||
Investment | $ 4,717 | $ 4,717 | $ 4,250 | ||
Unfunded Commitment | 5,067 | 5,067 | 3,226 | ||
Amortization Expense | 1,462 | $ 67 | 1,711 | $ 161 | |
Tax Benefit Recognized | (1,767) | (66) | (2,063) | (165) | |
Low Income Housing Tax Credit (LIHTC) | |||||
Investments in qualified affordable housing projects and other tax credit investments | |||||
Investment | 2,292 | 2,292 | 2,436 | ||
Amortization Expense | 72 | 67 | 144 | 161 | |
Tax Benefit Recognized | (83) | $ (66) | (165) | $ (165) | |
Federal Historic Tax Credit (FHTC) | |||||
Investments in qualified affordable housing projects and other tax credit investments | |||||
Investment | 2,425 | 2,425 | 1,814 | ||
Unfunded Commitment | 5,067 | 5,067 | $ 3,226 | ||
Amortization Expense | 1,390 | 1,567 | |||
Tax Benefit Recognized | $ (1,684) | $ (1,898) |
Commitments, Contingencies an_3
Commitments, Contingencies and Credit Risk (Details) - USD ($) $ in Thousands | 6 Months Ended | 10 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Dec. 31, 2018 | |
Commitments Outstanding | ||||
Unfunded Commitments Under Lines of Credit | $ 456,578 | $ 456,578 | $ 395,032 | |
Letters of Credit | 78,407 | 78,407 | 81,053 | |
Totals | 534,985 | 534,985 | 476,085 | |
Payment of construction costs | $ 5,966 | $ 710 | ||
Construction of corporate headquarters office | ||||
Commitments Outstanding | ||||
Percentage of cost of work | 3.75% | |||
Commitment under contract | $ 23,000 | |||
Payment of construction costs | 6,937 | |||
Federal Home Loan Bank Advances | ||||
Commitments Outstanding | ||||
Outstanding letters of credit | $ 119,011 | $ 119,011 | $ 129,152 |
Stock Options (Details)
Stock Options (Details) $ in Millions | 6 Months Ended | ||
Jun. 30, 2019USD ($)itemshares | Dec. 31, 2018shares | Dec. 31, 2017shares | |
Stock Options | |||
Number of banks in the index | item | 44 | ||
Minimum | |||
Stock Options | |||
Market capitalization | $ | $ 470 | ||
Maximum | |||
Stock Options | |||
Market capitalization | $ | $ 4,500 | ||
2017 Plan | |||
Stock Options | |||
Number of shares authorized for grant options to its directors, officers, and employees | shares | 1,500,000 | ||
Term of award | 10 years | ||
Vesting period | 5 years | ||
Number of unissued shares of the Company’s common stock authorized for option grants | shares | 538,600 | 540,000 |
Stock Options - Black-Scholes A
Stock Options - Black-Scholes Assumptions (Details) | 6 Months Ended |
Jun. 30, 2019 | |
Black-Scholes Assumptions | |
Expected Life | 7 years |
Expected Volatility | 20.92% |
Risk-Free Interest Rate | 2.67% |
Stock Options - Stock Option Pl
Stock Options - Stock Option Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Stock Option Plans | ||||
Outstanding at Beginning of Year | 1,807,100 | |||
Granted | 10,000 | |||
Exercised | (15,400) | |||
Forfeitures | (8,600) | |||
Outstanding at Period End | 1,793,100 | 1,793,100 | ||
Options Exercisable at Period End | 824,700 | 824,700 | ||
Weighted Average Exercise Price | ||||
Outstanding at Beginning of Year | $ 6.24 | |||
Granted | 11.15 | |||
Exercised | 4 | |||
Forfeitures | 10.65 | |||
Outstanding at Period End | $ 6.26 | 6.26 | ||
Options Exercisable at Period End | $ 4.09 | $ 4.09 | ||
Compensation expense for stock options | $ 174 | $ 190 | $ 348 | $ 389 |
Stock Options - Exercise Price
Stock Options - Exercise Price (Details) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($)$ / sharesshares | |
Exercise Price | |
Options Outstanding, Number Outstanding | 1,793,100 |
Options Outstanding, Remaining Contractual Life | 7 years |
Options Outstanding, Exercise Price | $ / shares | $ 6.26 |
Options Exercisable, Number Outstanding | 824,700 |
Total unrecognized compensation cost | $ | $ 2,319 |
Total unrecognized compensation cost expected to be recognized (in years) | 5 years |
1.65 | |
Exercise Price | |
Options Outstanding, Number Outstanding | 7,500 |
Options Outstanding, Remaining Contractual Life | 2 years 4 months 24 days |
Options Outstanding, Exercise Price | $ / shares | $ 1.65 |
Options Exercisable, Number Outstanding | 7,500 |
2.13 | |
Exercise Price | |
Options Outstanding, Number Outstanding | 80,000 |
Options Outstanding, Remaining Contractual Life | 3 years 9 months 18 days |
Options Outstanding, Exercise Price | $ / shares | $ 2.13 |
Options Exercisable, Number Outstanding | 80,000 |
3.00 | |
Exercise Price | |
Options Outstanding, Number Outstanding | 490,000 |
Options Outstanding, Remaining Contractual Life | 4 years 6 months |
Options Outstanding, Exercise Price | $ / shares | $ 3 |
Options Exercisable, Number Outstanding | 490,000 |
3.58 | |
Exercise Price | |
Options Outstanding, Number Outstanding | 50,000 |
Options Outstanding, Remaining Contractual Life | 5 years 6 months |
Options Outstanding, Exercise Price | $ / shares | $ 3.58 |
Options Exercisable, Number Outstanding | 40,000 |
7.47 | |
Exercise Price | |
Options Outstanding, Number Outstanding | 1,030,600 |
Options Outstanding, Remaining Contractual Life | 8 years 3 months 18 days |
Options Outstanding, Exercise Price | $ / shares | $ 7.47 |
Options Exercisable, Number Outstanding | 202,200 |
13.22 | |
Exercise Price | |
Options Outstanding, Number Outstanding | 25,000 |
Options Outstanding, Remaining Contractual Life | 8 years 10 months 24 days |
Options Outstanding, Exercise Price | $ / shares | $ 13.22 |
Options Exercisable, Number Outstanding | 5,000 |
12.86 | |
Exercise Price | |
Options Outstanding, Number Outstanding | 45,000 |
Options Outstanding, Remaining Contractual Life | 9 years 2 months 12 days |
Options Outstanding, Exercise Price | $ / shares | $ 12.86 |
12.94 | |
Exercise Price | |
Options Outstanding, Number Outstanding | 30,000 |
Options Outstanding, Remaining Contractual Life | 9 years 3 months 18 days |
Options Outstanding, Exercise Price | $ / shares | $ 12.94 |
11.59 | |
Exercise Price | |
Options Outstanding, Number Outstanding | 25,000 |
Options Outstanding, Remaining Contractual Life | 9 years 3 months 18 days |
Options Outstanding, Exercise Price | $ / shares | $ 11.59 |
11.15 | |
Exercise Price | |
Options Outstanding, Number Outstanding | 10,000 |
Options Outstanding, Remaining Contractual Life | 9 years 8 months 12 days |
Options Outstanding, Exercise Price | $ / shares | $ 11.15 |
Stock Options - Non-Vested Opti
Stock Options - Non-Vested Options (Details) | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Number of Shares | |
Nonvested Options at December 31, 2017 | shares | 1,086,000 |
Granted | shares | 10,000 |
Vested | shares | (119,000) |
Forfeited | shares | (8,600) |
Nonvested Options at March 31, 2018 | shares | 968,400 |
Weighted Average Grant Date Fair Value | |
Nonvested Options at December 31, 2017 | $ / shares | $ 2.78 |
Granted | $ / shares | 3.30 |
Vested | $ / shares | 1.67 |
Forfeited | $ / shares | 2.80 |
Nonvested Options at March 31, 2018 | $ / shares | $ 2.92 |
Regulatory Capital - Capital Am
Regulatory Capital - Capital Amounts and Ratios (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Dec. 31, 2018 | Jun. 30, 2019 |
Total Risk-Based Capital | |||
Total Risk-Based Capital, Actual amount | $ 263,909 | $ 264,671 | |
Total Risk-Based Capital, For Capital Adequacy Purposes, amount | 145,111 | 154,553 | |
Total Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conversion Buffer, amount | $ 179,121 | $ 202,851 | |
Total Risk-Based Capital, Actual ratio | 14.55% | 13.70% | |
Total Risk-Based Capital, For Capital Adequacy Purposes, Ratio | 8.00% | 8.00% | |
Total Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, Ratio | 9.875% | 10.50% | |
Tier 1 Risk-Based Capital | |||
Tier One Risk Based Capital | $ 218,888 | $ 221,806 | |
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes, amount | 108,833 | 115,915 | |
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, amount | $ 142,844 | $ 164,213 | |
Tier 1 Risk-Based Capital, Actual ratio | 12.07% | 11.48% | |
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes, Ratio | 6.00% | 6.00% | |
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, Ratio | 7.875% | 8.50% | |
Common Equity Tier 1 Capital | |||
Common Equity Tier 1 Capital, Actual amount | $ 218,888 | $ 221,806 | |
Common Equity Tier 1 Capital, For Capital Adequacy Purposes, amount | 81,625 | 86,936 | |
Common Equity Tier 1 Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, amount | $ 115,635 | $ 135,234 | |
Common Equity Tier 1 Capital, Actual ratio | 12.07% | 11.48% | |
Common Equity Tier 1 Capital, For Capital Adequacy Purposes, Ratio | 4.50% | 4.50% | |
Common Equity Tier 1 Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, Ratio | 6.375% | 7.00% | |
Leverage Ratio | |||
Tier 1 Leverage Ratio, Actual amount | $ 218,888 | $ 221,806 | |
Tier 1 Leverage Ratio, For Capital Adequacy Purposes, amount | 77,971 | 82,551 | |
Tier 1 Leverage Ratio, For Capital Adequacy Purposes Plus Capital Conservation Buffer, amount | $ 77,971 | $ 82,551 | |
Tier 1 Leverage Ratio, Actual ratio | 11.23% | 10.75% | |
Tier 1 Leverage Ratio, For Capital Adequacy Purposes, Ratio | 4.00% | 4.00% | |
Tier 1 Leverage Ratio, For Capital Adequacy Purposes Plus Capital Conservation Buffer, Ratio | 4.00% | 4.00% | |
Capital conservation buffer (as a percent) | 2.50% | 1.875% | |
Bank | |||
Total Risk-Based Capital | |||
Total Risk-Based Capital, Actual amount | $ 230,865 | $ 244,419 | |
Total Risk-Based Capital, For Capital Adequacy Purposes, amount | 144,776 | 154,339 | |
Total Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conversion Buffer, amount | 178,707 | 202,569 | |
Total Risk-Based Capital, To be Well Capitalized Under Prompt Corrective Action Regulations, amount | $ 180,970 | $ 192,923 | |
Total Risk-Based Capital, Actual ratio | 12.76% | 12.67% | |
Total Risk-Based Capital, For Capital Adequacy Purposes, Ratio | 8.00% | 8.00% | |
Total Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, Ratio | 9.875% | 10.50% | |
Total Risk-Based Capital, To be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 10.00% | 10.00% | |
Tier 1 Risk-Based Capital | |||
Tier One Risk Based Capital | $ 210,474 | $ 226,235 | |
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes, amount | 108,582 | 115,754 | |
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, amount | 142,514 | 163,985 | |
Tier 1 Risk-Based Capital, To be Well Capitalized Under Prompt Corrective Action Regulations, amount | $ 144,776 | $ 154,339 | |
Tier 1 Risk-Based Capital, Actual ratio | 11.63% | 11.73% | |
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes, Ratio | 6.00% | 6.00% | |
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, Ratio | 7.875% | 8.50% | |
Tier 1 Risk-Based Capital, To be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 8.00% | 8.00% | |
Common Equity Tier 1 Capital | |||
Common Equity Tier 1 Capital, Actual amount | $ 210,474 | $ 226,235 | |
Common Equity Tier 1 Capital, For Capital Adequacy Purposes, amount | 81,436 | 86,815 | |
Common Equity Tier 1 Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, amount | 115,368 | 135,046 | |
Common Equity Tier 1 Capital, To be Well Capitalized Under Prompt Corrective Action Regulations, amount | $ 117,630 | $ 125,400 | |
Common Equity Tier 1 Capital, Actual ratio | 11.63% | 11.73% | |
Common Equity Tier 1 Capital, For Capital Adequacy Purposes, Ratio | 4.50% | 4.50% | |
Common Equity Tier 1 Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, Ratio | 6.375% | 7.00% | |
Common Equity Tier 1 Capital, To be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 6.50% | 6.50% | |
Leverage Ratio | |||
Tier 1 Leverage Ratio, Actual amount | $ 210,474 | $ 226,235 | |
Tier 1 Leverage Ratio, For Capital Adequacy Purposes, amount | 77,795 | 82,372 | |
Tier 1 Leverage Ratio, For Capital Adequacy Purposes Plus Capital Conservation Buffer, amount | 77,795 | 82,372 | |
Tier 1 Leverage Ratio, To be Well Capitalized Under Prompt Corrective Action Regulations, amount | $ 97,244 | $ 102,965 | |
Tier 1 Leverage Ratio, Actual ratio | 10.82% | 10.99% | |
Tier 1 Leverage Ratio, For Capital Adequacy Purposes, Ratio | 4.00% | 4.00% | |
Tier 1 Leverage Ratio, For Capital Adequacy Purposes Plus Capital Conservation Buffer, Ratio | 4.00% | 4.00% | |
Tier 1 Leverage Ratio, To be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 5.00% | 5.00% |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 22, 2019 | Jun. 30, 2019 | Jun. 30, 2019 |
Stock Repurchase Program | |||
Authorized stock repurchase amount | $ 15,000 | ||
Authorized repurchase program period | 24 months | ||
Shares repurchased | 1,125,945 | 1,125,945 | |
Percentage of shares outstanding of entity | 4.00% | 4.00% | |
Weighted average share repurchase price | $ 11.20 | $ 11.20 | |
Stock Repurchases | $ 12,614 | $ 12,614 | |
Remaining repurchase amount | $ 2,400 | $ 2,400 |
Fair Value Measurement - Recurr
Fair Value Measurement - Recurring (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale, at Fair Value | $ 241,925 | $ 253,378 |
Interest Rate Swap, Assets | 115 | 352 |
Interest Rate Swaps, Liabilities | 780 | |
Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Interest Rate Swap, Assets | 115 | 352 |
Total Fair Value of Financial Assets | 242,040 | 253,730 |
Interest Rate Swaps, Liabilities | 780 | |
Total Fair Value of Financial Liabilities | 780 | |
U.S. Treasury Securities | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale, at Fair Value | 14,942 | 17,897 |
U.S. Treasury Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale, at Fair Value | 14,942 | 17,897 |
Municipal Bonds | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale, at Fair Value | 103,440 | 118,133 |
Municipal Bonds | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale, at Fair Value | 103,440 | 118,133 |
Mortgage-Backed Securities | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale, at Fair Value | 47,642 | 47,176 |
Mortgage-Backed Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale, at Fair Value | 47,642 | 47,176 |
Corporate Securities | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale, at Fair Value | 33,686 | 21,118 |
Corporate Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale, at Fair Value | 33,686 | 21,118 |
SBA Securities | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale, at Fair Value | 42,215 | 49,054 |
SBA Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale, at Fair Value | 42,215 | 49,054 |
Level 1 | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale, at Fair Value | 14,942 | 17,897 |
Level 1 | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Total Fair Value of Financial Assets | 14,942 | 17,897 |
Level 1 | U.S. Treasury Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale, at Fair Value | 14,942 | 17,897 |
Level 2 | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale, at Fair Value | 226,983 | 235,481 |
Interest Rate Swap, Assets | 115 | 352 |
Interest Rate Swaps, Liabilities | 780 | |
Level 2 | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Interest Rate Swap, Assets | 115 | 352 |
Total Fair Value of Financial Assets | 227,098 | 235,833 |
Interest Rate Swaps, Liabilities | 780 | |
Total Fair Value of Financial Liabilities | 780 | |
Level 2 | Municipal Bonds | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale, at Fair Value | 103,440 | 118,133 |
Level 2 | Mortgage-Backed Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale, at Fair Value | 47,642 | 47,176 |
Level 2 | Corporate Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale, at Fair Value | 33,686 | 21,118 |
Level 2 | SBA Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale, at Fair Value | $ 42,215 | $ 49,054 |
Fair Value Measurement - Nonrec
Fair Value Measurement - Nonrecurring (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Balances of the assets and liabilities measured at fair value on a nonrecurring basis | |||||
Loss | $ 600 | $ 900 | $ 1,200 | $ 1,500 | |
Nonrecurring | |||||
Balances of the assets and liabilities measured at fair value on a nonrecurring basis | |||||
Loss | 109 | $ 396 | |||
Nonrecurring | Impaired Loans | |||||
Balances of the assets and liabilities measured at fair value on a nonrecurring basis | |||||
Loss | 109 | 396 | |||
Level 2 | Nonrecurring | |||||
Balances of the assets and liabilities measured at fair value on a nonrecurring basis | |||||
Assets measured at fair value | 1,365 | 1,365 | 426 | ||
Level 2 | Nonrecurring | Impaired Loans | |||||
Balances of the assets and liabilities measured at fair value on a nonrecurring basis | |||||
Assets measured at fair value | 332 | 332 | $ 426 | ||
Level 2 | Nonrecurring | Foreclosed Assets | |||||
Balances of the assets and liabilities measured at fair value on a nonrecurring basis | |||||
Assets measured at fair value | $ 1,033 | $ 1,033 |
Fair Value Measurement - Estima
Fair Value Measurement - Estimated Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financial Assets: | ||
Cash and Due From Banks | $ 66,389 | $ 28,444 |
Bank-Owned Certificates of Deposit | 2,699 | 3,305 |
Securities Available for Sale, at Fair Value | 241,925 | 253,378 |
FHLB Stock, at Cost | 8,064 | 7,614 |
Loans, Net | 1,758,384 | 1,640,385 |
Accrued Interest Receivable | 7,583 | 6,589 |
Interest Rate Swap | 115 | 352 |
Financial Liabilities: | ||
Deposits | 1,699,265 | 1,560,934 |
Federal Funds Purchased | 18,000 | |
Notes Payable | 14,000 | 15,000 |
FHLB Advances | 142,500 | 124,000 |
Subordinated Debentures | 24,681 | 24,630 |
Accrued Interest Payable | 2,109 | 1,806 |
Interest Rate Swap | 780 | |
Level 1 | ||
Financial Assets: | ||
Cash and Due From Banks | 66,389 | 28,444 |
Securities Available for Sale, at Fair Value | 14,942 | 17,897 |
Level 2 | ||
Financial Assets: | ||
Bank-Owned Certificates of Deposit | 2,725 | 3,292 |
Securities Available for Sale, at Fair Value | 226,983 | 235,481 |
FHLB Stock, at Cost | 8,064 | 7,614 |
Loans, Net | 1,756,716 | 1,634,196 |
Accrued Interest Receivable | 7,583 | 6,589 |
Interest Rate Swap | 115 | 352 |
Financial Liabilities: | ||
Deposits | 1,705,562 | 1,560,488 |
Federal Funds Purchased | 18,000 | |
Notes Payable | 14,157 | 15,551 |
FHLB Advances | 146,616 | 124,952 |
Subordinated Debentures | 25,715 | 25,365 |
Accrued Interest Payable | 2,109 | 1,806 |
Interest Rate Swap | 780 | |
Estimated Fair Value | ||
Financial Assets: | ||
Cash and Due From Banks | 66,389 | 28,444 |
Bank-Owned Certificates of Deposit | 2,725 | 3,292 |
Securities Available for Sale, at Fair Value | 241,925 | 253,378 |
FHLB Stock, at Cost | 8,064 | 7,614 |
Loans, Net | 1,756,716 | 1,634,196 |
Accrued Interest Receivable | 7,583 | 6,589 |
Interest Rate Swap | 115 | 352 |
Financial Liabilities: | ||
Deposits | 1,705,562 | 1,560,488 |
Federal Funds Purchased | 18,000 | |
Notes Payable | 14,157 | 15,551 |
FHLB Advances | 146,616 | 124,952 |
Subordinated Debentures | 25,715 | 25,365 |
Accrued Interest Payable | 2,109 | $ 1,806 |
Interest Rate Swap | $ 780 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | Jul. 23, 2019 | Jan. 22, 2019 |
Subsequent Events | ||
Authorized stock repurchase amount | $ 15 | |
Subsequent Event | ||
Subsequent Events | ||
Increase in stock repurchase authorized amount | $ 10 | |
Authorized stock repurchase amount | $ 25 |