Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 15, 2019 | Jun. 29, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Level One Bancorp Inc | ||
Entity Central Index Key | 0001412707 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Emerging Growth Company | true | ||
Entity Small Business | true | ||
Entity Ex Transition Period | false | ||
Entity Shell Company | false | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 7,749,731 | ||
Entity Public Float | $ 139,197,016 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and cash equivalents | $ 33,296 | $ 63,661 |
Securities available-for-sale | 204,258 | 150,969 |
Federal Home Loan Bank stock | 8,325 | 8,303 |
Mortgage loans held for sale, at fair value | 5,595 | 4,548 |
Loans: | ||
Total loans | 1,126,565 | 1,034,923 |
Less: Allowance for loan losses | (11,566) | (11,713) |
Net loans | 1,114,999 | 1,023,210 |
Premises and equipment | 13,242 | 13,435 |
Goodwill | 9,387 | 9,387 |
Other intangible assets, net | 447 | 667 |
Bank-owned life insurance | 11,866 | 11,542 |
Income tax benefit | 2,467 | 3,102 |
Other assets | 12,333 | 12,467 |
Total assets | 1,416,215 | 1,301,291 |
Deposits: | ||
Noninterest-bearing demand deposits | 309,384 | 324,923 |
Interest-bearing demand deposits | 52,804 | 62,644 |
Money market and savings deposits | 287,575 | 289,363 |
Time deposits | 484,872 | 443,452 |
Total deposits | 1,134,635 | 1,120,382 |
Borrowings | 99,574 | 47,833 |
Subordinated notes | 14,891 | 14,844 |
Other liabilities | 15,355 | 10,272 |
Total liabilities | 1,264,455 | 1,193,331 |
Common stock, no par value per share: | ||
Issued and outstanding—7,750,216 shares at 12/31/2018 and 6,435,461 shares at 12/31/2017 | 90,621 | 59,511 |
Retained earnings | 62,891 | 49,232 |
Accumulated other comprehensive loss, net of tax | (1,752) | (783) |
Total shareholders' equity | 151,760 | 107,960 |
Total liabilities and shareholders' equity | 1,416,215 | 1,301,291 |
Originated | ||
Loans: | ||
Total loans | 1,041,898 | 920,895 |
Acquired | ||
Loans: | ||
Total loans | $ 84,667 | $ 114,028 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Dec. 31, 2018 | Dec. 31, 2017 |
Common stock, no par value per share: | ||
Shares authorized (in shares) | 20,000,000 | 20,000,000 |
Shares issued (in shares) | 7,750,216 | 6,435,461 |
Shares outstanding (in shares) | 7,750,216 | 6,435,461 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Securities: | |||
Taxable | $ 2,939 | $ 1,746 | $ 1,431 |
Tax-exempt | 1,657 | 955 | 441 |
Federal funds sold and other | 966 | 863 | 304 |
Total interest income | 63,824 | 55,607 | 52,903 |
Interest Expense | |||
Deposits | 11,055 | 6,267 | 4,499 |
Borrowed funds | 1,330 | 797 | 318 |
Subordinated notes | 1,015 | 1,014 | 1,015 |
Total interest expense | 13,400 | 8,078 | 5,832 |
Net interest income | 50,424 | 47,529 | 47,071 |
Provision expense for loan losses | 412 | 1,416 | 3,925 |
Net interest income after provision for loan losses | 50,012 | 46,113 | 43,146 |
Noninterest income | |||
Service charges on deposits | 2,556 | 2,543 | 1,885 |
Net gain (loss) on sales of securities | (71) | 208 | 926 |
Mortgage banking activities | 2,330 | 1,698 | 2,249 |
Net gain on sale of commercial loans | 11 | 146 | 0 |
Other charges and fees | 2,229 | 1,907 | 1,347 |
Total noninterest income | 7,055 | 6,502 | 6,407 |
Noninterest expense | |||
Salary and employee benefits | 25,781 | 21,555 | 17,978 |
Occupancy and equipment expense | 4,425 | 4,208 | 3,370 |
Professional service fees | 1,672 | 2,314 | 1,189 |
Acquisition and due diligence fees | 0 | 0 | 2,684 |
Marketing expense | 1,033 | 930 | 806 |
Printing and supplies expense | 441 | 477 | 468 |
Data processing expense | 2,146 | 1,912 | 2,023 |
Other expense | 4,180 | 4,655 | 3,889 |
Total noninterest expense | 39,678 | 36,051 | 32,407 |
Income before income taxes | 17,389 | 16,564 | 17,146 |
Income tax provision | 3,003 | 6,723 | 6,100 |
Net income | $ 14,386 | $ 9,841 | $ 11,046 |
Earnings per common share: | |||
Basic (in dollars per share) | $ 1.95 | $ 1.54 | $ 1.74 |
Diluted (in dollars per share) | $ 1.91 | $ 1.49 | $ 1.69 |
Average common shares outstanding—basic (in shares) | 7,376,507 | 6,388,328 | 6,340,814 |
Average common shares outstanding—diluted (in shares) | 7,523,918 | 6,609,996 | 6,549,422 |
Cash dividends declared per common share (in dollars per share) | $ 0.12 | $ 0 | $ 0 |
Originated | |||
Interest income | |||
Loans, including fees | $ 49,076 | $ 39,812 | $ 33,771 |
Acquired | |||
Interest income | |||
Loans, including fees | $ 9,186 | $ 12,231 | $ 16,956 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 14,386 | $ 9,841 | $ 11,046 | |
Other comprehensive income: | ||||
Unrealized holding gains (losses) on securities available-for-sale arising during the period | (1,085) | 735 | (275) | |
Reclassification adjustment for (gains) losses included in income | 71 | (208) | (926) | |
Tax effect | [1] | 213 | (184) | 426 |
Net unrealized gains (losses) on securities available-for-sale, net of tax | (801) | 343 | (775) | |
Total comprehensive income, net of tax | $ 13,585 | $ 10,184 | $ 10,271 | |
[1] | Includes $(15 thousand), $73 thousand and $324 thousand of tax (benefit) expense related to reclassification for the years ended December 31, 2018, 2017 and 2016, respectively. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Tax (benefit) expense related to reclassification | $ (15) | $ 73 | $ 324 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Retained Earnings | Accumulated Other Comprehensive Loss |
Balance at Dec. 31, 2015 | $ 85,634 | $ 57,640 | $ 28,345 | $ (351) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 11,046 | 11,046 | ||
Other comprehensive income (loss) | (775) | (775) | ||
Exercise of stock options, including tax benefit | 300 | 300 | ||
Tax benefit from restricted stock vesting | 2 | 2 | ||
Stock-based compensation expense, net of tax impact | 366 | 366 | ||
Balance at Dec. 31, 2016 | 96,571 | 58,306 | 39,391 | (1,126) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 9,841 | 9,841 | ||
Other comprehensive income (loss) | 343 | 343 | ||
Exercise of stock options, including tax benefit | 605 | 605 | ||
Stock-based compensation expense, net of tax impact | 600 | 600 | ||
Balance at Dec. 31, 2017 | 107,960 | 59,511 | 49,232 | (783) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 14,386 | 14,386 | ||
Other comprehensive income (loss) | (801) | (801) | ||
Reclass of tax reform adjustments due to early adoption of ASU 2018-02 | 168 | (168) | ||
Initial public offering of 1,150,765 shares of common stock, net of issuance costs | 29,030 | 29,030 | ||
Common stock dividends declared and paid of $0.12/share | (895) | (895) | ||
Exercise of stock options, including tax benefit | 1,279 | 1,279 | ||
Stock-based compensation expense, net of tax impact | 801 | 801 | ||
Balance at Dec. 31, 2018 | $ 151,760 | $ 90,621 | $ 62,891 | $ (1,752) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Initial public offering, shares of common stock (in shares) | shares | 1,150,765 |
Cash dividend declared (in dollars per share) | $ / shares | $ 0.12 |
Cash dividend paid (in dollars per share) | $ / shares | $ 0.12 |
Exercise of stock options (in shares) | shares | 127,494 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities | |||
Net income | $ 14,386 | $ 9,841 | $ 11,046 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation of fixed assets | 1,332 | 1,369 | 1,445 |
Amortization of core deposit intangibles | 220 | 234 | 233 |
Stock-based compensation expense | 815 | 613 | 366 |
Provision expense for loan losses | 412 | 1,416 | 3,925 |
Discount on acquired SBA/USDA retained loans | 0 | 0 | 133 |
Net securities premium amortization | 1,327 | 871 | 608 |
Net (gain) loss on sales of securities | 71 | (208) | (926) |
Originations of loans held for sale | (90,361) | (64,184) | (78,950) |
Proceeds from sales of loans originated for sale | 91,091 | 69,753 | 74,995 |
Net gain on sales of loans | (2,341) | (1,844) | (2,249) |
Accretion on acquired purchase credit impaired loans | (3,794) | (5,340) | (8,412) |
Gain on sale of other real estate owned and repossessed assets | (44) | (237) | (35) |
Increase in cash surrender value of life insurance | (324) | (328) | (181) |
Amortization of debt issuance costs | 47 | 58 | 53 |
Excess tax benefits | 108 | 27 | 0 |
Net (increase) decrease in accrued interest receivable and other assets | 382 | (1,546) | (4,660) |
Net increase in accrued interest payable and other liabilities | 4,810 | 1,667 | 2,812 |
Net cash provided by operating activities | 18,137 | 12,162 | 203 |
Cash flows from investing activities | |||
Net increase in loans | (88,069) | (75,780) | (89,466) |
Principal payments on securities available-for-sale | 9,368 | 8,850 | 12,900 |
Purchases of securities available-for-sale | (68,694) | (74,225) | (91,041) |
Purchases of Bank Owned Life Insurance | 0 | 0 | (7,520) |
Purchases of FHLB Stock | (22) | (2,475) | (1,536) |
Additions to premises and equipment | (1,159) | (913) | (3,066) |
Proceeds from: | |||
Sale of securities available-for-sale | 3,625 | 14,803 | 93,427 |
Sale of other real estate owned and repossessed assets | 822 | 885 | 116 |
Net cash from acquisition | 0 | 0 | 2,458 |
Net cash used in investing activities | (144,129) | (128,855) | (83,728) |
Cash flows from financing activities | |||
Net increase in deposits | 14,253 | 195,458 | 46,170 |
Change in short-term borrowings | 61,810 | (31,820) | 40,543 |
Repayment of long-term FHLB advances | (10,000) | (4,506) | (408) |
Change in secured borrowing | (69) | 1,514 | 0 |
Net proceeds from issuance of common stock related to initial public offering | 29,030 | 0 | 0 |
Proceeds from exercised stock options | 1,279 | 605 | 300 |
Payments related to tax-withholding for share based compensation awards | (14) | (13) | 0 |
Common stock dividends paid | (662) | 0 | 0 |
Net cash provided by financing activities | 95,627 | 161,238 | 86,605 |
Net change in cash and cash equivalents | (30,365) | 44,545 | 3,080 |
Beginning cash and cash equivalents | 63,661 | 19,116 | 16,036 |
Ending cash and cash equivalents | 33,296 | 63,661 | 19,116 |
Supplemental disclosure of cash flow information: | |||
Interest paid | 12,634 | 7,427 | 5,864 |
Income taxes paid | 2,120 | 4,625 | 1,200 |
Transfer of loans held for sale to loans held for investment | 544 | 1,587 | 0 |
Transfer from premises and equipment to other assets | 18 | 1,793 | 0 |
Transfer from loans to other real estate owned | 108 | 385 | 258 |
Increase in assets and liabilities in acquisitions: | |||
Assets acquired—Bank of Michigan | 0 | 0 | 114,442 |
Liabilities assumed—Bank of Michigan | $ 0 | $ 0 | $ 102,762 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations: Level One Bancorp, Inc. (the "Company", "we," "our", or "us") is a financial holding company headquartered in Farmington Hills, Michigan. Its wholly owned banking subsidiary, Level One Bank (the "Bank"), is a Michigan banking corporation with depository accounts insured by the Deposit Insurance Fund of the Federal Deposit Insurance Corporation (the "FDIC"). The Bank provides a wide range of business and consumer financial services in the greater Farmington Hills, Novi, Northville, Birmingham, Ferndale, Sterling Heights, Bloomfield Township, Ann Arbor, Detroit and Grand Rapids areas. Its primary deposit products are checking, interest-bearing demand, money market and savings, and term certificate accounts, and its primary lending products are commercial real estate, commercial and industrial, residential real estate, and consumer loans. On July 9, 2017, the Company formed a new subsidiary, Hamilton Court Insurance Company ("Hamilton Court"), which is a wholly owned insurance subsidiary of the Company that provides property and casualty insurance coverage to the Company and the Bank, and reinsurance to ten other third party insurance captives for which insurance may not be currently available or economically feasible in the insurance marketplace. Hamilton Court was designed to insure the risks of the Company and the Bank by providing additional insurance coverage for deductibles, excess limits and uninsured exposures. Hamilton Court is domiciled in Nevada. Our principal business activity has been lending to and accepting deposits from individuals, businesses, municipalities and other entities. We have derived income principally from interest charged on loans and, to a lesser extent, from interest and dividends earned on investment securities. We have also derived income from noninterest sources, such as fees received in connection with various lending and deposit services and residential mortgage loan originations and sales. Our principal expenses include interest expense on deposits and borrowings, operating expenses, such as salaries and employee benefits, occupancy and equipment expenses, data processing costs, professional fees and other noninterest expenses, provisions for loan losses and income tax expense. Initial Public Offering: On April 24, 2018, the Company sold 1,150,765 shares of common stock in its initial public offering, including 180,000 shares of common stock pursuant to the exercise in full by the underwriters of their option to purchase additional shares. The aggregate offering price for the shares sold by the Company was $ 32.2 million , and after deducting $ 2.1 million of underwriting discounts and $ 1.1 million of offering expenses paid to third parties, the Company received total net proceeds of $ 29.0 million from the initial public offering. In addition, certain selling shareholders participated in the offering and sold an aggregate of 229,235 shares of our common stock at an aggregate offering price of $ 6.4 million . The Company did not receive any proceeds from the sales of shares by the selling shareholders. Basis of Presentation: The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and conform to predominant practices within the banking industry. Management of the Company has made a number of estimates and assumptions related to the reporting of assets and liabilities to prepare the consolidated financial statements in conformity with GAAP. Actual results may differ from those estimates. In the opinion of management, all adjustments, consisting of normal recurring accruals considered necessary for a fair presentation of the results of operations for annual periods presented herein, have been included. Some items in the prior year financial statements were reclassified to conform to the current presentation. Such items had no impact on net income or shareholder’s equity. Principles of Consolidation: The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, the Bank and Hamilton Court, after elimination of significant intercompany transactions and accounts. Business Combinations The Company accounts for business combinations under the acquisition method of accounting. Under the acquisition method, tangible and intangible identifiable assets acquired, liabilities assumed and any noncontrolling interests in the acquiree are recorded at fair value as of the acquisition date. The Company includes the results of operations of the acquired companies in the consolidated statements of income from the date of acquisition. Transaction costs and costs to restructure the acquired company are expensed as incurred. Goodwill is recognized as the excess of the acquisition price over the estimated fair value of the net assets acquired. If the fair value of the net assets acquired is greater than the acquisition price, a bargain purchase gain is recognized and recorded in noninterest income. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, amounts due from banks, which includes amounts on deposit with the Federal Reserve, interest-bearing deposits with banks or other financial institutions and federal funds sold. Generally, federal funds are sold for one‑day periods, but not longer than 30 days. Investment Securities Investment securities consist of debt securities of the U.S. Treasury, government sponsored entities, states, counties, municipalities, corporations, agency mortgage-backed securities and non-agency mortgage-backed securities. Securities transactions are recorded on a trade date basis. Securities are classified as available for sale when the Company intends to sell them before maturity. Available-for-sale securities are recorded at fair value. Unrealized gains and losses, net of the related tax effect, on available-for-sale securities are included in other comprehensive income and the related accumulated unrealized holding gains and losses are reported as a separate component of shareholders’ equity until realized. On a quarterly basis, the Company makes an assessment to determine whether there have been any events or circumstances to indicate that a security for which there is an unrealized loss is impaired on an other than temporary basis. This determination requires significant judgment. A decline in the fair value of any available-for-sale security below cost that is deemed other than temporary results in a charge to earnings and the establishment of a new cost basis for the security. In estimating other-than-temporary impairment (“OTTI”) losses, we consider the severity and duration of the impairment; the financial condition and near-term prospects of the issuer, which for debt securities considers external credit ratings and recent downgrades; projected cash flows on covered non-agency mortgage-backed securities; and the intent and ability of the Company to hold the security for a period of time sufficient for a recovery in value. Management evaluates securities for other-than-temporary impairment more frequently when economic or market conditions warrant such an evaluation. Interest income includes amortization of purchase premiums or discounts. Premiums and discounts on securities are amortized on the level-yield method. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Also, when applicable, realized gains and losses are reported as a reclassification adjustment, net of tax, in other comprehensive income. Federal Home Loan Bank (FHLB) Stock The Bank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. Loans Held for Sale Loans held for sale consist of loans originated with the intent to sell. Loans held for sale are carried at fair value, determined individually, as of the balance sheet date. The Company believes the fair value method better reflects the economic risks associated with these loans. Fair value measurements on loans held for sale are based on quoted market prices for similar loans in the secondary market, market quotes from anticipated sales contracts and commitments, or contract prices from firm sales commitments. Fair value includes the servicing value of the loans as well as any accrued interest. Loans held for sale are generally sold with servicing rights released, except for Small Business Administration and United States Department of Agriculture guaranteed loans, which are sold with servicing retained. The changes in the fair value of loans held for sale are reflected in mortgage banking activities on the consolidated statements of income . Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of unamortized deferred loan fees and costs and net of any purchase premiums and discounts. Interest income is recorded on the accrual basis, in accordance with the terms of the respective loan. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income without anticipating prepayments. Loans are considered delinquent when principal or interest payments are past due 30 days or more; delinquent loans may remain on accrual status between 30 days and 89 days past due. Loans on which the accrual of interest has been discontinued are designated as nonaccrual loans. Interest income on mortgage and commercial loans is discontinued when principal or interest payments are past due 90 days, unless the loan is well-secured and in process of collection. Consumer loans are typically charged off no later than 120 days past due. When loans are placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income. Interest received on such loans is accounted for on the cash-basis or cost recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Certain Purchased Loans The Company purchases individual loans and groups of loans, some of which have shown evidence of credit deterioration since origination. These purchased credit impaired (“PCI”) loans are recorded at the amount paid or at fair value at acquisition in a business combination, such that there is no carryover of the seller’s allowance for loan losses. After acquisition, losses are recognized by an increase in the provision for loan losses. These PCI loans are accounted for individually or aggregated into pools of loans based on common risk characteristics such as credit grade, loan type, and date of origination. The Company estimates the amount and timing of expected cash flows for each purchased loan or pool, and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan or pool ( accretable yield). The excess of the loan’s or pool’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, an impairment loss is recognized by establishing an allocation for the loan or pool in the allowance for loan losses. If the present value of expected cash flows is greater than the carrying amount, it is recognized, prospectively, as loan interest income. Allowance for Loan Losses The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. A loan is impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Loans over $250 thousand are individually evaluated for impairment. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans, are collectively evaluated for impairment, and accordingly, they are not separately identified for impairment disclosures. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings, are classified as impaired, regardless of size, and are measured for impairment based upon the present value of estimated future cash flows using the loan’s effective rate at inception or, if considered collateral dependent, based upon the fair value of the collateral. For troubled debt restructurings that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses. An allowance for loan losses for purchased credit impaired loans is recorded when projected future cash flows decrease. The measurement of impairment on these loans or pools of loans is based upon the excess of the loan or pool’s carrying value over the present value of the projected future cash flows, discounted at the last accounting yield applicable to the loan or pool of loans. The general component covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the most recent 36 months. The historical loss estimates for loans prior to 2017 were based primarily on the actual historical loss experienced by our peer banks combined with a small factor representing our own loss history. Starting in 2017, the Company modified its methodology on historical loss analysis to incorporate and fully rely on the Bank’s own historical loss data, which did not have a material impact. The historical loss estimates are established by loan type including commercial and industrial and commercial real estate. This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment. These economic factors include consideration of the following: local and national economic conditions; trends in underwriting standards and lending policies; trends in portfolio volume, maturity and composition (impact of credit concentrations); experience, ability and depth of lending management and staff; trends in delinquencies and nonaccruals; results of independent loan review; change in value for collateral dependent loans; high loan growth; unseasoned bank portfolio; specialized financing; and other factors (legal, regulatory, competition). The following portfolio segments have been identified: Commercial real estate loans are secured by a mortgage lien on the real estate property. Owner-occupied real estate loans generally are considered to carry less risk than non-owner occupied real estate (properties) because the Company considers them to be less sensitive to the condition of the commercial real estate market. Repayment is based on the operations of the business. Investment real estate loans rely on rental income for loan repayment, which involves risk such as rent rollover, tenants going out of business, and competitive properties in the area. Construction and land development loans generally are considered the riskiest class of commercial real estate, due to possible cost overruns, contractor/lien issues, loss of tenant, etc. Risk of loss is managed by adherence to standard loan policies that establish certain levels of performance prior to the extension of a loan to the borrower. Commercial and Industrial loans have varying degrees of risk, but overall are considered to have less risk than commercial real estate. These loans are generally short-term in nature and are almost always backed by collateral. Unsecured commercial loans are supported by strong borrower(s)/guarantor(s) in terms of liquidity, net worth, cash flow, etc. Collateral security of these loans is relatively liquid (i.e., accounts receivable, inventory, equipment) and readily available to cover potential loan loss. Credit risk is managed through standardized loan policies, established and authorized credit limits, portfolio management and the diversification of industries. Consumer and Residential Real Estate loan portfolios, unlike commercial, tend to be composed of many relatively homogeneous loans. Loan repayment is based on personal cash flow. To assess the risk of a consumer loan request, loan purpose, collateral, debt to income ratio, credit bureau report, and cash flow/employment verification are analyzed. A certain level of security is provided through liens on credits supported by collateral. Economic conditions that affect consumers in the Bank’s market have a direct impact on the credit quality of these loans. Higher levels of unemployment, lower levels of income growth and weaker economic growth are factors that may adversely impact consumer loan credit quality. The majority of residential real estate loans originated by the Bank conform to secondary market underwriting standards and are sold within a short timeframe to unaffiliated third parties, including the future servicing rights to the loans. The credit underwriting standards for these loans require a certain level of documentation, verifications, valuations, and overall credit performance of the borrower. Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the shorter of the life of the asset or the expected term of the lease. We periodically review the carrying value of our long‑lived assets to determine if impairment has occurred or whether changes in circumstances have occurred that would require a revision to the remaining useful life. In making such determination, we evaluate the performance, on an undiscounted basis, of the underlying operations or assets which give rise to such amount. Other Real Estate Owned ("OREO") and Repossessed Assets Other real estate owned and repossessed assets represent properties/assets acquired through acquisition, foreclosure, repossession process or other proceedings, and are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Fair value for OREO is based on an appraisal performed upon foreclosure. Property is evaluated regularly to ensure the recorded amount is supported by its fair value less estimated costs to dispose. After the initial foreclosure appraisal, fair value is generally determined by an annual appraisal unless known events warrant adjustments to the recorded value. Revenue from the operations of OREO is included in other income in the consolidated statements of income, and expense from the operations of OREO and decreases in valuations are included in other expense in the consolidated statements of income. Goodwill and Other Intangible Assets Goodwill resulting from business combinations is generally determined as the excess of the fair value of the consideration transferred over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exists that indicate that a goodwill impairment test should be performed. The Company has selected September 30 as the date to perform the annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on our balance sheet. Mortgage Servicing Rights When loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amounts. Impairment is determined by grouping assets based on predominant risk characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of impairment no longer exists for a particular grouping, a reduction of the provision for loan losses may be recorded as an increase to income. Servicing fee income, which is reported on the income statement as other charges and fees, is recorded for fees earned for servicing loans. The fees are based on contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The amortization of servicing rights is netted against loan servicing fee income. Servicing fees totaled $117 thousand , $145 thousand and $175 thousand for the years ended December 31, 2018, 2017 and 2016, respectively. Bank-owned Life Insurance The Bank has purchased life insurance policies on certain key executives and senior managers. Bank-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Derivatives All derivatives are recognized on the consolidated balance sheet as a component of other assets or other liabilities at their fair value. Customer-initiated derivatives refer to the Company utilizing interest rate derivatives to provide a service to certain qualifying customers to help facilitate their respective risk management strategies. Therefore, these derivatives are not used to manage interest rate risk in the Company's assets or liabilities. The Company generally takes offsetting positions with dealer counterparties to mitigate the valuation risk of the customer-initiated derivatives. Income primarily results in the spread between the customer derivatives and offsetting dealer positions. The gains or losses derived from changes in fair value are recognized in current earnings during the period of change in other non-interest income on the consolidated statements of income. Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of these mortgage loans are accounted for as freestanding derivatives. Fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates from the date the interest on the loan is locked. The Company enters into forward commitments for the future delivery of mortgage loans when interest rate locks are entered into in order to hedge the change in interest rates resulting from its commitments to fund the loans. Changes in the fair values of these derivatives are included in mortgage banking activities in the consolidated statements of income. Secured borrowing Transfers of financial assets that do not qualify for sale accounting are reported as collateralized borrowings. Accordingly, the related assets remain on the Company’s balance sheet and continue to be reported and accounted for as if the transfer had not occurred. Cash proceeds from these transfers are reported as liabilities, with attributable interest expense recognized over the life of the related transactions. Loan Commitments and Related Financial Instruments Financial instruments include off‑balance sheet credit instruments, such as commitments to make loans and standby letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are any matters at this time that will have a material effect on the consolidated financial statements. Stock-Based Compensation Compensation cost is recognized for stock options and restricted stock awards issued to employees, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. Additionally, the Company accounts for forfeitures as they occur. Comprehensive Income Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale, net of taxes and reclassifications. Income Taxes Income tax expense or benefit is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Dividend Restriction Banking regulations require maintaining certain capital levels and may limit the dividends paid by the Bank to the holding company or by the holding company to shareholders. The total amount of dividends which may be paid out at any date is also generally limited to retained earnings. Operating Segments While chief decision-makers monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Operating results are not reviewed by senior management to make resource allocation or performance decisions. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment. Emerging Growth Company Status: We are an "emerging growth company," as defined in the Jumpstart Our Business Startups Act of 2012 (the JOBS Act). Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period when complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of this extended transition period, which means these financial statements, as well as financial statements we file in the future for as long as we remain an emerging growth company, will be subject to all new or revised accounting standards generally applicable to private companies. Recent Accounting Standards: Revenue Recognition In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09 "Revenue from Contracts with Customers (Topic 606)," which provides a framework for revenue recognition that replaces the existing industry and transaction specific requirements under the existing standards. ASU 2014-09 requires an entity to apply a five-step model to determine when to recognize revenue and at what amount. The model specifies that revenue should be recognized when (or as) an entity transfers control of goods or services to a customer at the amount in which the entity expects to be entitled. Depending on whether certain criteria are met, revenue should be recognized either over time, in a manner that depicts the entity's performance, or at a point in time, when control of the goods or services are transferred to the customer. The amendments of ASU 2014-09 may be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application. The guidance will be effective for the Company for the fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. The Company plans to adopt these amendments within the time frames stated above. The Company is continuing to evaluate the impact ASU 2014-09 will have on our consolidated financial |
Securities
Securities | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | SECURITIES The following table summarizes the amortized cost and fair value of the available-for-sale securities portfolio at December 31, 2018 and December 31, 2017 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss. (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2018 U.S. government sponsored entities & agencies $ 2,404 $ 4 $ (11 ) $ 2,397 State and political subdivision 75,093 657 (604 ) 75,146 Mortgage-backed securities: residential 10,114 4 (379 ) 9,739 Mortgage-backed securities: commercial 12,594 17 (229 ) 12,382 Collateralized mortgage obligations: residential 18,916 51 (296 ) 18,671 Collateralized mortgage obligations: commercial 32,390 98 (500 ) 31,988 U.S. Treasury 21,232 — (751 ) 20,481 SBA 15,856 — (168 ) 15,688 Asset backed securities 3,872 — (30 ) 3,842 Corporate bonds 14,006 18 (100 ) 13,924 Total available-for-sale $ 206,477 $ 849 $ (3,068 ) $ 204,258 December 31, 2017 State and political subdivision $ 52,951 $ 602 $ (329 ) $ 53,224 Mortgage-backed securities: residential 8,689 3 (261 ) 8,431 Mortgage-backed securities: commercial 9,879 12 (72 ) 9,819 Collateralized mortgage obligations: residential 19,304 125 (208 ) 19,221 Collateralized mortgage obligations: commercial 20,879 11 (333 ) 20,557 U.S. Treasury 24,283 — (710 ) 23,573 SBA 12,644 10 (38 ) 12,616 Corporate bonds 3,545 — (17 ) 3,528 Total available-for-sale $ 152,174 $ 763 $ (1,968 ) $ 150,969 The proceeds from sales of securities and the associated gains and losses for the periods below were as follows: For the year ended December 31, (Dollars in thousands) 2018 2017 2016 Proceeds $ 3,625 $ 14,803 $ 93,427 Gross gains 2 217 1,048 Gross losses (73 ) (9 ) (122 ) The amortized cost and fair value of securities are shown in the table below by contractual maturity. Actual timing may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Additionally, residential mortgage-backed securities and collateralized mortgage obligations receive monthly principal payments, which are not reflected below. December 31, 2018 (Dollars in thousands) Amortized Cost Fair Value Within one year $ 1,682 $ 1,671 One to five years 53,670 52,708 Five to ten years 38,951 38,677 Beyond ten years 112,174 111,202 Total $ 206,477 $ 204,258 Securities pledged at December 31, 2018 and December 31, 2017 had a carrying amount of $22.7 million and $36.5 million , respectively, and were pledged to secure Federal Home Loan Bank ("FHLB") advances, a Federal Reserve Bank line of credit, repurchase agreements and deposits. As of December 31, 2018 , the Bank held 51 tax-exempt state and local municipal securities totaling $37.2 million backed by the Michigan School Bond Loan Fund. Other than the aforementioned investments, at December 31, 2018 and December 31, 2017 , there were no holdings of securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of shareholders' equity. The following table summarizes securities with unrealized losses at December 31, 2018 and December 31, 2017 aggregated by security type and length of time in a continuous unrealized loss position: Less than 12 Months 12 Months or Longer Total (Dollars in thousands) Fair value Unrealized Losses Fair value Unrealized Losses Fair value Unrealized Losses December 31, 2018 Available-for-sale U.S. government sponsored entities & agencies $ 978 $ (11 ) $ — $ — $ 978 $ (11 ) State and political subdivision 5,121 (25 ) 27,667 (579 ) 32,788 (604 ) Mortgage-backed securities: residential 2,595 (4 ) 6,393 (375 ) 8,988 (379 ) Mortgage-backed securities: commercial 1,967 (8 ) 8,944 (221 ) 10,911 (229 ) Collateralized mortgage obligations: residential 3,814 (27 ) 8,958 (269 ) 12,772 (296 ) Collateralized mortgage obligations: commercial — — 17,939 (500 ) 17,939 (500 ) U.S. Treasury — — 20,481 (751 ) 20,481 (751 ) SBA 12,420 (91 ) 3,268 (77 ) 15,688 (168 ) Asset backed securities 3,842 (30 ) — — 3,842 (30 ) Corporate bonds 7,526 (28 ) 2,950 (72 ) 10,476 (100 ) Total available-for-sale $ 38,263 $ (224 ) $ 96,600 $ (2,844 ) $ 134,863 $ (3,068 ) December 31, 2017 Available-for-sale State and political subdivision $ 17,285 $ (127 ) $ 6,002 $ (202 ) $ 23,287 $ (329 ) Mortgage-backed securities: residential 1,966 (33 ) 6,226 (228 ) 8,192 (261 ) Mortgage-backed securities: commercial 5,874 (31 ) 1,867 (41 ) 7,741 (72 ) Collateralized mortgage obligations: residential 4,609 (40 ) 7,828 (168 ) 12,437 (208 ) Collateralized mortgage obligations: commercial 15,717 (294 ) 2,813 (39 ) 18,530 (333 ) U.S. Treasury 3,937 (27 ) 19,637 (683 ) 23,574 (710 ) SBA 8,516 (25 ) 367 (13 ) 8,883 (38 ) Corporate bonds 3,528 (17 ) — — 3,528 (17 ) Total available-for-sale $ 61,432 $ (594 ) $ 44,740 $ (1,374 ) $ 106,172 $ (1,968 ) As of December 31, 2018 , the Company's investment portfolio consisted of 266 securities, 167 of which were in an unrealized loss position. The unrealized losses for these securities resulted primarily from changes in interest rates. The Company expects full recovery of the carrying amount of these securities and does not intend to sell the securities in an unrealized loss position nor does it believe it will be required to sell securities in an unrealized loss position before the value is recovered. The Company does not consider these securities to be other-than-temporarily impaired at December 31, 2018 . |
Loans
Loans | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Loans | LOANS The following table presents the recorded investment in loans at December 31, 2018 and December 31, 2017 . The recorded investment in loans excludes accrued interest receivable. (Dollars in thousands) Originated Acquired Total December 31, 2018 Commercial real estate $ 500,809 $ 61,284 $ 562,093 Commercial and industrial 375,130 8,325 383,455 Residential real estate 165,015 15,003 180,018 Consumer 944 55 999 Total $ 1,041,898 $ 84,667 $ 1,126,565 December 31, 2017 Commercial real estate $ 431,872 $ 79,890 $ 511,762 Commercial and industrial 365,679 12,007 377,686 Residential real estate 122,551 21,888 144,439 Consumer 793 243 1,036 Total $ 920,895 $ 114,028 $ 1,034,923 At December 31, 2018 and 2017, the Company had residential loans held for sale, which were originated with the intent to sell, totaling $5.6 million and $4.5 million , respectively. During the years ended December 31, 2018 and 2017, the Company sold residential real estate loans with proceeds totaling $91.1 million and $69.8 million , respectively. Information as to nonperforming assets was as follows: (Dollars in thousands) December 31, 2018 December 31, 2017 Nonaccrual loans: Commercial real estate $ 5,927 $ 2,257 Commercial and industrial 9,605 9,024 Residential real estate 2,915 2,767 Total nonperforming loans 18,447 14,048 Other real estate owned — 652 Total nonperforming assets $ 18,447 $ 14,700 Loans 90 days or more past due and still accruing $ 243 $ 440 At December 31, 2018 and 2017, all of the loans 90 days or more past due and still accruing were PCI loans. Loan delinquency as of the dates presented below was as follows: (Dollars in thousands) Current 30 - 59 Days 60 - 89 Days 90+ Days Total December 31, 2018 Commercial real estate $ 559,523 $ 497 $ — $ 2,073 $ 562,093 Commercial and industrial 381,424 664 82 1,285 383,455 Residential real estate 174,831 2,499 1,314 1,374 180,018 Consumer 998 — 1 — 999 Total $ 1,116,776 $ 3,660 $ 1,397 $ 4,732 $ 1,126,565 December 31, 2017 Commercial real estate $ 507,250 $ 3,066 $ 1,412 $ 34 $ 511,762 Commercial and industrial 373,829 1,397 2,455 5 377,686 Residential real estate 138,613 3,808 1,258 760 144,439 Consumer 985 51 — — 1,036 Total $ 1,020,677 $ 8,322 $ 5,125 $ 799 $ 1,034,923 Impaired Loans: Information as to impaired loans, excluding purchased credit impaired loans, was as follows: (Dollars in thousands) December 31, 2018 December 31, 2017 Nonaccrual loans $ 18,447 $ 14,048 Performing troubled debt restructurings: Commercial and industrial 568 961 Residential real estate 363 261 Total performing troubled debt restructurings 931 1,222 Total impaired loans, excluding purchase credit impaired loans $ 19,378 $ 15,270 Troubled Debt Restructurings: The Company assesses loan modifications to determine whether a modification constitutes a troubled debt restructuring ("TDR"). This applies to all loan modifications except for modifications to loans accounted for in pools under ASC 310-30, which are not subject to TDR accounting/classification. For loans excluded from ASC 310-30 accounting, a modification is considered a TDR when a borrower is experiencing financial difficulties and the Company grants a concession to the borrower. For loans accounted for individually under ASC 310-30, a modification is considered a TDR when a borrower is experiencing financial difficulties and the effective yield after the modification is less than the effective yield at the time the loan was acquired or less than the effective yield of any re-estimation of cash flows subsequent to acquisition in association with consideration of qualitative factors included within ASC 310-40. All TDRs are considered impaired loans. The nature and extent of impairment of TDRs, including those which have experienced a subsequent default, are considered in the determination of an appropriate level of allowance for loan losses. As of December 31, 2018 and December 31, 2017 , the Company had a recorded investment in troubled debt restructurings of $5.9 million and $7.6 million, respectively. The Company has allocated a specific reserve of $258 thousand for those loans at December 31, 2018 and a specific reserve of $975 thousand for those loans at December 31, 2017 . The Company has not committed to lend additional amounts to borrowers whose loans have been modified. As of December 31, 2018 , there were $5.0 million of nonperforming TDRs and $931 thousand of performing TDRs included in impaired loans. As of December 31, 2017 , there were $6.4 million of nonperforming TDRs and $1.2 million of performing TDRs included in impaired loans. All TDRs are considered impaired loans in the calendar year of their restructuring. A loan that has been modified will return to performing status if it satisfies a six-month performance requirement; however, it will continue to be reported as a TDR and considered impaired. The following table presents the recorded investment of loans modified as TDRs during the years ended December 31, 2018 , 2017 and 2016, by type of concession granted. In cases where more than one type of concession was granted, the loans were categorized based on the most significant concession. Concession type Financial effects of (Dollars in thousands) Principal Interest Forbearance Total Total Net Provision For the year ended December 31, 2018 Commercial real estate $ 2,073 $ — $ — 4 $ 2,073 $ 101 $ — Commercial and industrial 1,031 106 — 4 1,137 — 14 Residential real estate 113 — — 2 113 — 5 Total $ 3,217 $ 106 $ — 10 $ 3,323 $ 101 $ 19 For the year ended December 31, 2017 Commercial real estate $ 297 $ — $ 1,229 2 $ 1,526 $ — $ — Residential real estate 784 357 — 3 1,141 — 15 Total $ 1,081 $ 357 $ 1,229 5 $ 2,667 $ — $ 15 For the year ended December 31, 2016 Commercial real estate $ 289 $ — $ — 2 $ 289 $ — $ — Commercial and industrial — — 5,268 3 5,268 — 852 Residential real estate — — 414 3 414 14 — Total $ 289 $ — $ 5,682 8 $ 5,971 $ 14 $ 852 On an ongoing basis, the Company monitors the performance of TDRs to their modified terms. The following tables present the number of loans modified in TDRs during the twelve months ending December 31, 2018, 2017 and 2016 for which there was a subsequent payment default, including the recorded investment as of each period end. A payment on a TDR is considered to be in default once it is greater than 30 days past due. For the year ended December 31, 2018 (Dollars in thousands) Total number of Total recorded Provision for loan losses following a Commercial real estate 3 $ 2,073 $ — Commercial and industrial 1 904 — Total 4 $ 2,977 $ — For the year ended December 31, 2017 (Dollars in thousands) Total number of Total recorded Provision for loan losses following a Commercial real estate 1 $ 1,229 $ — Commercial and industrial 5 — 497 Residential real estate 1 292 — Total 7 $ 1,521 $ 497 For the year ended December 31, 2016 (Dollars in thousands) Total number of loans Total recorded investment Provision for loan losses following a subsequent default Commercial real estate 2 $ 289 $ — Total 2 $ 289 $ — Credit Quality Indicators: 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 Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes commercial and industrial and commercial real estate loans and is performed on an annual basis. The Company uses the following definitions for risk ratings: Pass. Loans classified as pass are higher quality loans that do not fit any of the other categories described below. This category includes loans risk rated with the following ratings: cash/stock secured, excellent credit risk, superior credit risk, good credit risk, satisfactory credit risk, and marginal credit risk. Special Mention. Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company's credit position at some future date. Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Based on the most recent analysis performed, the risk category of loans by class of loans was as follows: (Dollars in thousands) Pass Special Mention Substandard Doubtful Total December 31, 2018 Commercial real estate $ 545,843 $ 10,240 $ 5,966 $ 44 $ 562,093 Commercial and industrial 368,189 2,841 12,425 — 383,455 Total $ 914,032 $ 13,081 $ 18,391 $ 44 $ 945,548 December 31, 2017 Commercial real estate $ 492,731 $ 10,664 $ 8,323 $ 44 $ 511,762 Commercial and industrial 361,740 5,945 9,963 38 377,686 Total $ 854,471 $ 16,609 $ 18,286 $ 82 $ 889,448 For residential real estate loans and consumer loans, the Company evaluates credit quality based on the aging status of the loan and by payment activity. Residential real estate loans and consumer loans are considered nonperforming if 90 days or more past due. Consumer loan types are continuously monitored for changes in delinquency trends and other asset quality indicators. The following presents residential real estate and consumer loans by credit quality: (Dollars in thousands) Performing Nonperforming Total December 31, 2018 Residential real estate $ 177,103 $ 2,915 $ 180,018 Consumer 999 — 999 Total $ 178,102 $ 2,915 $ 181,017 December 31, 2017 Residential real estate $ 141,672 $ 2,767 $ 144,439 Consumer 1,036 — 1,036 Total $ 142,708 $ 2,767 $ 145,475 Purchased Credit Impaired Loans: As part of the Company's previous four acquisitions, the Company acquired purchase credit impaired ("PCI") loans for which there was evidence of credit quality deterioration since origination, and we determined that it was probable that the Company would be unable to collect all contractually required principal and interest payments. The total balance of all PCI loans from these acquisitions was as follows: (Dollars in thousand) Unpaid Principal Balance Recorded Investment December 31, 2018 Commercial real estate $ 7,406 $ 4,344 Commercial and industrial 177 122 Residential real estate 4,974 3,409 Total PCI loans $ 12,557 $ 7,875 December 31, 2017 Commercial real estate $ 10,084 $ 5,771 Commercial and industrial 808 417 Residential real estate 4,068 3,558 Total PCI loans $ 14,960 $ 9,746 The following table reflects the activity in the accretable yield of PCI loans from past acquisitions, which includes total expected cash flows, including interest, in excess of the recorded investment. For the year ended December 31, (Dollars in thousands) 2018 2017 2016 Balance at beginning of period $ 14,452 $ 19,893 $ 27,852 Additions due to acquisitions — — 741 Accretion of income (3,794 ) (5,340 ) (8,412 ) Adjustments to accretable yield 304 121 250 Other activity, net (15 ) (222 ) (538 ) Balance at end of period $ 10,947 $ 14,452 $ 19,893 "Accretion of income" represents the income earned on these loans for the year. "Adjustments to accretable yield" represents the net amount of accretable yield added or removed as a result of the semi-annual re-estimation of expected cash flows. For the years ended December 31, 2018 and 2017, allowance for loans losses on PCI loans decreased by $161 thousand and increased by $234 thousand, respectively. Related Party Loans: We have extended loans to certain of our directors, executive officers, principal shareholders and their affiliates. The aggregate loans outstanding to the directors, executive officers, principal shareholders and their affiliates totaled approximately $4.0 million and $2.1 million , respectively. During 2018 and 2017, there were $2.6 million and $1.1 million , respectively, of new loans and other additions, while repayments and other reductions totaled $731 thousand and $269 thousand , respectively. OFF-BALANCE SHEET ACTIVITIES In the normal course of business, the Company offers a variety of financial instruments with off-balance sheet risk to meet the financing needs of its customers. These financial instruments include outstanding commitments to extend credit, credit lines, commercial letters of credit and standby letters of credit. These are agreements to provide credit, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Off-balance sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies used for loans are used to make such commitments, including obtaining collateral at exercise of the commitment. A summary of the contractual amounts of the Company's exposure to off-balance sheet risk is as follows: December 31, 2018 December 31, 2017 (Dollars in thousands) Fixed Variable Fixed Variable Commitments to make loans $ 8,608 $ 10,900 $ 5,041 $ 8,837 Unused lines of credit 18,672 229,490 12,407 189,787 Unused standby letters of credit 3,861 232 3,584 1,411 Commitments to make loans are generally made for periods of 90 days or less. The fixed rate loan commitments of $8.6 million as of December 31, 2018 , have interest rates ranging from 4.88% to 5.75% and maturities ranging from 5 to 30 years. |
Allowance
Allowance | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Allowance | ALLOWANCE An allowance for loan losses is maintained to absorb probable incurred losses from the loan portfolio. The allowance for loan losses is based on management's continuing evaluation of the risk characteristics and credit quality of the loan portfolio, assessment of current economic conditions, diversification and size of the portfolio, adequacy of collateral, past and anticipated loss experience, and the amount of nonperforming loans. The Company established an allowance for loan losses associated with PCI loans (accounted for under ASC 310-30) based on credit deterioration subsequent to the acquisition date. As of December 31, 2018 , the Company had six PCI loan pools and 12 non-pooled PCI loans. The Company re-estimates cash flows expected to be collected for PCI loans on a semi-annual basis, with any decline in expected cash flows recorded as provision for loan losses on a discounted basis during the period. For any increases in cash flows expected to be collected, the Company adjusts the amount of accretable yield recognized on a prospective basis over the loan's remaining life. For loans not accounted for under ASC 310-30, the Company individually evaluates certain impaired loans on a quarterly basis and establishes specific allowances for such loans, if required. A loan is considered impaired when it is probable that interest or principal payments will not be made in accordance with the contractual terms of the loan agreement. Consistent with this definition, all loans for which the accrual of interest has been discontinued (nonaccrual loans) and all TDRs are considered impaired. The Company individually evaluates nonaccrual loans with book balances of $250 thousand or more, all loans whose terms have been modified in a TDR, and certain other loans. The threshold for individual evaluation is revised on an infrequent basis, generally when economic circumstances change significantly. Specific allowances for impaired loans are estimated using one of several methods, including the estimated fair value of underlying collateral, observable market value of similar debt or discounted expected future cash flows. All other impaired loans are individually evaluated by identifying its risk characteristics and applying the standard reserve factor for the corresponding loan pool. Loans which do not meet the criteria to be individually evaluated are evaluated in pools of loans with similar risk characteristics. Business loans are assigned to pools based on the Company's internal risk rating system. Internal risk ratings are assigned to each business loan at the time of approval and are subjected to subsequent periodic reviews by the Company's senior management, generally at least annually or more frequently upon the occurrence of a circumstance that affects the credit risk of the loan. For business loans not individually evaluated, losses inherent to the pool are estimated by applying standard reserve factors to outstanding principal balances. The allowance for loans not individually evaluated is determined by applying estimated loss rates to various pools of loans within the portfolios with similar risk characteristics. Estimated loss rates for all pools are updated quarterly, incorporating quantitative and qualitative factors such as recent charge-off experience, current economic conditions and trends, changes in collateral values of properties securing loans (using index-based estimates), and trends with respect to past due and nonaccrual amounts. Loans acquired in business combinations are initially recorded at fair value, which includes an estimate of credit losses expected to be realized over the remaining lives of the loans, and therefore no corresponding allowance for loan losses is recorded for these loans at acquisition. Methods utilized to estimate any subsequently required allowance for loan losses for acquired loans not deemed credit-impaired at acquisition are similar to originated loans; however, the estimate of loss is based on the unpaid principal balance less any remaining purchase discount. Information as to loans individually evaluated for impairment, including impaired PCI loans, is as follows: (Dollars in thousands) Recorded with no related allowance Recorded with related allowance Total recorded investment Contractual principal balance Related allowance December 31, 2018 Individually evaluated impaired loans: Commercial real estate $ 5,898 $ 3,991 $ 9,889 $ 13,076 $ 815 Commercial and industrial 5,892 4,059 9,951 10,411 526 Residential real estate 1,666 3,255 4,921 6,604 101 Total $ 13,456 $ 11,305 $ 24,761 $ 30,091 $ 1,442 December 31, 2017 Individually evaluated impaired loans: Commercial real estate $ 2,222 $ 5,339 $ 7,561 $ 13,536 $ 876 Commercial and industrial 5,238 5,059 10,297 11,677 1,549 Residential real estate 1,696 3,132 4,828 6,502 154 Total $ 9,156 $ 13,530 $ 22,686 $ 31,715 $ 2,579 (Dollars in thousands) Average Recorded Investment Interest Income Recognized Cash Basis Interest Recognized For the year ended December 31, 2018 Individually evaluated impaired loans: Commercial real estate $ 9,471 $ 1,622 $ 142 Commercial and industrial 7,673 91 112 Residential real estate 5,182 369 — Total $ 22,326 $ 2,082 $ 254 For the year ended December 31, 2017 Individually evaluated impaired loans: Commercial real estate $ 8,145 $ 1,710 $ — Commercial and industrial 17,738 238 — Residential real estate 5,361 303 — Total $ 31,244 $ 2,251 $ — For the year ended December 31, 2016 Individually evaluated impaired loans: Commercial real estate $ 689 $ 1,719 $ 1 Commercial and industrial 8,894 59 82 Residential real estate 5,379 526 11 Consumer 18 — — Total $ 14,980 $ 2,304 $ 94 Activity in the allowance for loan losses and the allocation of the allowance for loans was as follows: (Dollars in thousands) Commercial Real Estate Commercial and Industrial Residential Real Estate Consumer Total For the year ended December 31, 2018 Allowance for loan losses: Beginning balance $ 4,852 $ 5,903 $ 950 $ 8 $ 11,713 Provision (benefit) for loan losses 464 (269 ) 191 26 412 Gross chargeoffs (112 ) (1,283 ) (47 ) (35 ) (1,477 ) Recoveries 23 823 70 2 918 Net (chargeoffs) recoveries (89 ) (460 ) 23 (33 ) (559 ) Ending allowance for loan losses $ 5,227 $ 5,174 $ 1,164 $ 1 $ 11,566 For the year ended December 31, 2017 Allowance for loan losses: Beginning balance $ 4,124 $ 5,932 $ 1,030 $ 3 $ 11,089 Provision (benefit) for loan losses 1,071 478 (136 ) 3 1,416 Gross chargeoffs (360 ) (697 ) (85 ) — (1,142 ) Recoveries 17 190 141 2 350 Net (chargeoffs) recoveries (343 ) (507 ) 56 2 (792 ) Ending allowance for loan losses $ 4,852 $ 5,903 $ 950 $ 8 $ 11,713 For the year ended December 31, 2016 Allowance for loan losses: Beginning balance $ 3,299 $ 3,256 $ 1,307 $ 28 $ 7,890 Provision (benefit) for loan losses 772 3,447 (267 ) (27 ) 3,925 Gross chargeoffs — (943 ) (211 ) — (1,154 ) Recoveries 53 172 201 2 428 Net (chargeoffs) recoveries 53 (771 ) (10 ) 2 (726 ) Ending allowance for loan losses $ 4,124 $ 5,932 $ 1,030 $ 3 $ 11,089 (Dollars in thousands) Commercial Real Estate Commercial and Industrial Residential Real Estate Consumer Total December 31, 2018 Allowance for loan losses: Individually evaluated for impairment $ — $ 504 $ 18 $ — $ 522 Collectively evaluated for impairment 4,412 4,648 1,063 1 10,124 Acquired with deteriorated credit quality 815 22 83 — 920 Ending Allowance for loan losses $ 5,227 $ 5,174 $ 1,164 $ 1 $ 11,566 Balance of loans: Individually evaluated for impairment $ 5,898 $ 9,829 $ 1,854 $ — $ 17,581 Collectively evaluated for impairment 551,851 373,504 174,755 999 1,101,109 Acquired with deteriorated credit quality 4,344 122 3,409 — 7,875 Total loans $ 562,093 $ 383,455 $ 180,018 $ 999 $ 1,126,565 December 31, 2017 Allowance for loan losses: Individually evaluated for impairment $ — $ 1,480 $ 18 $ — $ 1,498 Collectively evaluated for impairment 3,976 4,354 796 8 9,134 Acquired with deteriorated credit quality 876 69 136 — 1,081 Ending Allowance for loan losses $ 4,852 $ 5,903 $ 950 $ 8 $ 11,713 Balance of loans: Individually evaluated for impairment $ 2,222 $ 9,976 $ 1,778 $ — $ 13,976 Collectively evaluated for impairment 503,769 367,293 139,103 1,036 1,011,201 Acquired with deteriorated credit quality 5,771 417 3,558 — 9,746 Total loans $ 511,762 $ 377,686 $ 144,439 $ 1,036 $ 1,034,923 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | PREMISES AND EQUIPMENT Premises and equipment were as follows at December 31, 2018 and December 31, 2017 : (Dollars in thousands) December 31, 2018 December 31, 2017 Land $ 2,197 $ 2,197 Building 9,746 9,132 Leasehold improvements 1,708 1,655 Furniture, fixtures and equipment 6,024 5,614 Total premises and equipment $ 19,675 $ 18,598 Less: Accumulated depreciation 6,433 5,163 Net premises and equipment $ 13,242 $ 13,435 Depreciation expense was $ 1.3 million , $ 1.4 million and $ 1.4 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Most of the Company's branch facilities are rented under non-cancelable operating lease agreements. Total rent expense was $1.1 million , $909 thousand and $604 thousand for the years ended December 31, 2018 , 2017 and 2016 , respectively. Rent commitments under non-cancelable operating leases (including renewal options that the Company will likely exercise) were as follows: (Dollars in thousands) As of December 31, 2018 2019 $ 1,160 2020 1,013 2021 835 2022 842 2023 787 Thereafter 3,235 Total lease commitments $ 7,872 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS Goodwill : The Company acquired two banks, Lotus Bank in March 2015 and Bank of Michigan in March 2016, which resulted in the recognition of $4.6 million and $4.8 million of goodwill, respectively. Goodwill was $9.4 million at both December 31, 2018 and December 31, 2017 . Goodwill is not amortized but is evaluated at least annually for impairment. The Company's most recent annual goodwill impairment review performed as of September 30, 2018 did not indicate that an impairment of goodwill existed. The Company also determined that no triggering events have occurred that indicated impairment from the most recent valuation date through December 31, 2018 and that the Company's goodwill was not impaired at December 31, 2018 . There was no change in goodwill for the years ended December 31, 2018 and December 31, 2017 . Acquired Intangible Assets : The Company has recorded core deposit intangibles ("CDIs") associated with each of its acquisitions. CDIs are amortized on an accelerated basis over their estimated useful lives. The table below presents the Company's net carrying amount of CDIs: (Dollars in thousands) December 31, 2018 December 31, 2017 Gross carrying amount $ 2,045 $ 2,045 Accumulated amortization (1,598 ) (1,378 ) Net Intangible $ 447 $ 667 Aggregate amortization expense was $220 thousand , $234 thousand and $233 thousand for the years ended December 31, 2018 , 2017 and 2016 , respectively. Estimated amortization expense for each of the next five years: (Dollars in thousands) 2019 $ 116 2020 102 2021 68 2022 53 2023 39 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Deposits | DEPOSITS Time deposits that met or exceeded the FDIC insurance limit of $250,000 were $ 211.7 million and $ 187.5 million at December 31, 2018 and 2017 , respectively. At December 31, 2018 , brokered deposits totaled $ 110.3 million , compared to $ 87.8 million at December 31, 2017. As of December 31, 2018 , the scheduled maturities of total time deposits were as follows: (Dollars in thousands) December 31, 2018 Due in 2019 $ 408,408 Due in 2020 66,609 Due in 2021 7,446 Due in 2022 2,063 Due in 2023 346 Thereafter — Total $ 484,872 Related party deposits totaled $ 38.9 million and $ 81.2 million at December 31, 2018 and 2017 , respectively. |
Borrowings and Subordinated Deb
Borrowings and Subordinated Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Borrowings and Subordinated Debt | BORROWINGS AND SUBORDINATED DEBT The following table presents the components of our short-term borrowings and long-term debt. December 31, 2018 December 31, 2017 (Dollars in thousands) Amount Weighted Amount Weighted Short-term borrowings: Securities sold under agreements to repurchase $ 609 0.30 % $ 1,319 0.30 % FHLB line of credit 2,520 2.87 — — Federal funds purchased 5,000 2.50 — — FHLB Advances 90,000 2.54 35,000 1.25 Total short-term borrowings 98,129 2.53 36,319 1.22 Long-term debt: Secured borrowing due in 2022 1,445 1.00 1,514 1.00 FHLB advances due in 2022 — — 10,000 1.75 Subordinated notes due in 2025 (2) 14,891 6.38 14,844 6.38 Total long-term debt 16,336 5.90 26,358 4.31 Total short-term and long-term borrowings $ 114,465 3.01 % $ 62,677 2.52 % _______________________________________________________________________________ (1) Weighted average rate presented is the contractual rate which excludes premiums and discounts related to purchase accounting. (2) The December 31, 2018 balance includes subordinated notes of $15.0 million and debt issuance costs of $109 thousand . The December 31, 2017 balance includes subordinated notes of $15.0 million and debt issuance costs of $156 thousand . The Bank is a member of the FHLB of Indianapolis, which provides short- and long-term funding collateralized by mortgage-related assets to its members. FHLB short-term borrowings bear interest at variable rates based on LIBOR. The advances were secured by a blanket lien on $372.5 million of real estate-related loans as of December 31, 2018 . Based on this collateral and the Company's holdings of FHLB stock, the Company was eligible to borrow up to an additional $131.6 million from the FHLB at December 31, 2018 . In addition, the Bank can borrow up to $125.0 million through the unsecured lines of credit it has established with other correspondent banks, as well as $5.0 million through a secured line with the Federal Reserve Bank. The Bank had $5.0 million outstanding of federal funds purchased as of the year ended December 31, 2018 and no amounts outstanding during the same period in 2017. At December 31, 2018 , the Company had $609 thousand of securities sold under agreements to repurchase with customers, which mature overnight. These borrowings were secured by residential collateralized mortgage obligation securities with a fair value of $1.0 million at December 31, 2018 . The Company had a secured borrowing of $1.4 million as of December 31, 2018 relating to certain loan participations sold by the Company that did not qualify for sales treatment. The secured borrowing bears a fixed rate of 1.00% and matures on September 15, 2022. As of December 31, 2018 , the Company had outstanding $15.0 million of subordinated notes. The notes bear a fixed interest rate of 6.375% per annum, payable semiannually through December 15, 2020. The notes will bear a floating interest rate of three-month LIBOR plus 477 basis points payable quarterly after December 15, 2020 through maturity. The notes mature no later than December 15, 2025, and the Company has the option to redeem or prepay any or all of the subordinated notes without premium or penalty any time after December 15, 2020 or upon an occurrence of a Tier 2 capital event or tax event. The notes are subordinated to all other borrowings. At December 31, 2018 , there was $109 thousand of debt issuance costs remaining, which are netted against the balance of the subordinated notes and recognized as expense over the expected term of the notes. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company and its subsidiaries are subject to U.S. federal income tax. In the ordinary course of business, we are routinely subject to audit by the Internal Revenue Service. Currently, the Company is subject to examination by taxing authorities for the 2015 tax return year and forward. The current and deferred components of the provision for income taxes were as follows: For the years ended December 31, (Dollars in thousands) 2018 2017 2016 Current expense $ 2,974 $ 5,721 $ 6,163 Remeasurement due to tax reform — 1,293 — Deferred expense (benefit) 29 (291 ) (63 ) Total $ 3,003 $ 6,723 $ 6,100 A reconciliation of expected income tax expense using the federal corporate tax rate of 21% , 35% , and 35% as of December 31, 2018 , 2017 and 2016, respectively, and actual income tax expense is as follows : For the year ended December 31, (Dollars in thousands) 2018 2017 2016 Income tax expense based on federal corporate tax rate $ 3,651 $ 5,797 $ 6,001 Changes resulting from: Tax-exempt income (406 ) (446 ) (211 ) Remeasurement due to tax reform — 1,293 — Captive Insurance Benefit (198 ) (143 ) — Other, net (44 ) 222 310 Income tax expense $ 3,003 $ 6,723 $ 6,100 Upon exercise or vesting of the share-based award, if the tax deduction exceeds the compensation cost that was previously recorded for financial statement purposes, this will result in an excess tax benefit. A tax benefit of $108 thousand and $27 thousand was recorded during the years ended December 31, 2018 and 2017, respectively, as a result of share awards vesting/exercised during the year. The tax effects of temporary differences that resulted in the significant components of deferred tax assets and liabilities at December 31, 2018 and 2017 are as follows: For the years ended December 31, (Dollars in thousands) 2018 2017 Deferred tax assets: Allowance for loan losses $ 2,429 $ 2,460 Start-up/pre-opening expenses 76 100 Stock options 108 100 Deferred loan fees 213 195 Unrealized loss—available for sale securities 466 253 Nonaccrued Interest 156 177 Accrued expenses 91 95 Other 232 90 Total gross deferred tax assets 3,771 3,470 Deferred tax liabilities: Depreciation (559 ) (554 ) Prepaid expenses (304 ) (199 ) Business combination adjustments (521 ) (532 ) Partnership Investments (306 ) (288 ) Other (12 ) (12 ) Total gross deferred tax liabilities (1,702 ) (1,585 ) Net deferred tax assets $ 2,069 $ 1,885 Management has determined that a valuation allowance is not required for the deferred tax assets at December 31, 2018 because it is more likely than not that these assets could be realized through carry back to taxable income in prior years, future reversals of existing taxable temporary differences, tax planning strategies and future taxable income. This conclusion is based on the Company's historical earnings, current level of earnings and prospects for continued growth and profitability. There were no unrecognized tax benefits at December 31, 2018, and the Company does not expect the total amount of unrecognized tax benefits to significantly increase in the next twelve months. The Company recognizes interest and/or penalties related to income tax matters in income tax expense, when applicable. The Company did not record any interest and penalties for 2018, 2017 or 2016. On December 22, 2017, the U.S government enacted the TCJA, a comprehensive tax legislation, which reduced the federal income tax rate for C corporations from 35% to 21%, effective January 1, 2018. As a result of the reduction in the federal corporate income tax rate from 35% to 21%, the Company recognized a $1.3 million tax expense in the consolidated statements of income for the year ended December 31, 2017 as a result of the TCJA, of which the expense recorded is primarily attributable to the remeasurement of net deferred tax assets. The SEC issued Staff Accounting Bulletin No. 118 to address the application of GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the TCJA, thereby allowing a one-year measurement period to reflect provisional adjustments as information becomes available. The Company had adjustments in 2018 reflecting the impact of the rate reduction on various deferred items that the Company reasonably estimated at December 31, 2017, such as on partnership investments and accrued expenses, and trued up these adjustments with the filing of the 2017 tax return. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation | STOCK BASED COMPENSATION 2007 Stock Option Plan On January 16, 2008, the shareholders of the Company approved the Level One Bancorp, Inc. 2007 Stock Option Plan (the "Stock Option Plan"). The Stock Option Plan was intended to promote equity ownership of the Company by (i) selected officers and employees of the Company and the Bank; (ii) directors of the Company and the Bank; and (iii) the organizers. Such ownership was intended to promote the proprietary interest of the individuals to whom stock options will be granted ("Optionees"), to attract and retain qualified officers, employees and directors, and to further align the interests of Optionees with the interests of the Company's shareholders. The Company's Board of Directors had reserved (with consent of the Company's shareholders) 630,265 shares of common stock for issuance under the Stock Option Plan. The term of the options is ten years , and options vest over three years , one-third each year. The Company will use authorized but unissued shares to satisfy share option exercises. The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model. Expected volatilities are based on historical volatilities of the Company's common stock. The Company assumes all awards will vest. The expected term of options granted 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. The fair value of the stock options granted was determined using the following weighted-average assumptions as of grant date: December 31, 2018 December 31, 2017 December 31, 2016 Risk Free Interest Rate 2.83% N/A 1.51% Expected Term (years) 7.0 N/A 7.0 Expected Volatility 0.04 N/A 0.04 Weighted average fair value of options granted $4.46 N/A $3.05 The summary of our stock option activity for the years ended December 31, 2018 and 2017 is as follows: 2018 2017 Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Shares Weighted Average Weighted Average Remaining Contractual Options outstanding, beginning of year 484,147 $ 13.96 4.7 555,153 $ 13.52 5.4 Granted 30,000 24.80 — — Exercised (127,494 ) 10.04 (57,506 ) 10.53 Forfeited (9,885 ) 10.00 (13,500 ) 10.22 Options outstanding, end of year 376,768 16.26 5.8 484,147 13.96 4.7 Options exercisable 317,263 15.03 5.4 392,134 12.62 3.9 The aggregate intrinsic value of options outstanding and exercisable as of December 31, 2018 was $2.4 million and $2.3 million , respectively. As of December 31, 2018 , there was $ 104 thousand of total unrecognized compensation cost related to stock options granted under the Stock Option Plan. The cost is expected to be recognized over a weighted-average period of 1.4 years. The total intrinsic value and cash received from options exercised, including tax benefit, was $1.8 million and $1.4 million , for the year ended December 31, 2018, $755 thousand and $605 thousand , respectively, for the year ended December 31, 2017, and $294 thousand and $300 thousand , respectively, for the year ended December 31, 2016. Share-based compensation expense charged against income was $155 thousand , $165 thousand and $169 thousand for the years ended December 31, 2018 , 2017 and 2016, respectively. 2014 Equity Incentive Plan Under the 2014 Equity Incentive Plan ("2014 Plan"), the Company could grant restricted stock awards to its directors ("Plan A") and employees ("Plan B"). Restricted stock awards are participating shares that vest upon completion of future service requirements. If an individual awarded restricted stock awards terminates employment prior to the end of the vesting period, the unvested portion of the stock award is forfeited. The fair value of these awards is equal to the fair value of the stock as of the issuance date. The Company recognizes stock-based compensation expense for these awards over the vesting period, using the straight-line method, based upon the number of shares of restricted stock ultimately expected to vest. The Company had reserved 150,000 shares of common stock for issuance under the 2014 Plan. During the years ended December 31, 2018 and 2017, the Company granted 30,271 and 32,977 restricted stock awards under the 2014 Plan, respectively. 2018 Equity Incentive Plan On March 15, 2018, the Company’s Board of Directors approved the 2018 Equity Incentive Compensation Plan ("2018 Plan"). The 2018 Plan became effective upon shareholder approval at the annual shareholders meeting held on April 17, 2018. Under the 2018 Plan, the Company can grant incentive and non-qualified stock options, stock awards, stock appreciation rights, and other incentive awards to directors and employees of, and certain service providers to, the Company and its subsidiaries. Once the 2018 Plan became effective, no further awards could be granted from the Stock Option Plan or the 2014 Plan. However, any outstanding equity award granted under the Stock Option Plan or the 2014 Plan will remain subject to the terms of such plans until the time it is no longer outstanding. The Company has reserved 250,000 shares of common stock for issuance under the 2018 Plan. During the year ended December 31, 2018 , the Company granted 6,750 restricted stock awards under the 2018 Plan, resulting in 243,250 shares available to be granted as of December 31, 2018. A summary of changes in the Company's nonvested shares for the year ended December 31, 2018 is as follows: Nonvested Shares Shares Weighted Average Grant-Date Fair Value Nonvested at 1/1/2018 30,150 $ 22.03 Granted 37,021 25.53 Vested (13,401 ) 23.20 Nonvested at 12/31/2018 53,770 $ 24.14 As of December 31, 2018 , there was $ 684 thousand of total unrecognized compensation cost related to nonvested shares granted under the 2014 Plan and 2018 Plan. The cost is expected to be recognized over a weighted average period of 1.9 years. The total fair value of shares vested during the year ended December 31, 2018 was $311 thousand , compared to a fair value of $309 thousand for the year ended December 31, 2017 . Total expense for restricted stock awards totaled $660 thousand , $448 thousand and $195 thousand for the years ended December 31, 2018 , 2017 and 2016, respectively. |
Other Benefit Plans
Other Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Other Benefit Plans | OTHER BENEFIT PLANS 401(k) Plan : The Company sponsors a 401(k) plan for substantially all employees. The plan is a "Safe Harbor" plan by statute and requires the Company to make a 3% non-elective contribution for each eligible employee. Contributions to the plan were approximately $537 thousand , $460 thousand and $405 thousand for the years ended December 31, 2018 , 2017 and 2016 , respectively. Deferred Compensation Plan : The Company's deferred compensation plan that was established in 2015 covers all executive officers. Under the plan, the Company pays each participant, or their beneficiary, the amount of contributions deferred plus adjustments for deemed investment experience. A liability is accrued for the obligation under these plans. The expense incurred for the deferred compensation was $148 thousand , $149 thousand and $81 thousand for the years ended December 31, 2018 , 2017 and 2016 , respectively, which resulted in a deferred compensation liability of $415 thousand , $267 thousand and $117 thousand as of December 31, 2018 , 2017 and 2016 , respectively. |
Off-Balance Sheet Activities
Off-Balance Sheet Activities | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Off-Balance Sheet Activities | LOANS The following table presents the recorded investment in loans at December 31, 2018 and December 31, 2017 . The recorded investment in loans excludes accrued interest receivable. (Dollars in thousands) Originated Acquired Total December 31, 2018 Commercial real estate $ 500,809 $ 61,284 $ 562,093 Commercial and industrial 375,130 8,325 383,455 Residential real estate 165,015 15,003 180,018 Consumer 944 55 999 Total $ 1,041,898 $ 84,667 $ 1,126,565 December 31, 2017 Commercial real estate $ 431,872 $ 79,890 $ 511,762 Commercial and industrial 365,679 12,007 377,686 Residential real estate 122,551 21,888 144,439 Consumer 793 243 1,036 Total $ 920,895 $ 114,028 $ 1,034,923 At December 31, 2018 and 2017, the Company had residential loans held for sale, which were originated with the intent to sell, totaling $5.6 million and $4.5 million , respectively. During the years ended December 31, 2018 and 2017, the Company sold residential real estate loans with proceeds totaling $91.1 million and $69.8 million , respectively. Information as to nonperforming assets was as follows: (Dollars in thousands) December 31, 2018 December 31, 2017 Nonaccrual loans: Commercial real estate $ 5,927 $ 2,257 Commercial and industrial 9,605 9,024 Residential real estate 2,915 2,767 Total nonperforming loans 18,447 14,048 Other real estate owned — 652 Total nonperforming assets $ 18,447 $ 14,700 Loans 90 days or more past due and still accruing $ 243 $ 440 At December 31, 2018 and 2017, all of the loans 90 days or more past due and still accruing were PCI loans. Loan delinquency as of the dates presented below was as follows: (Dollars in thousands) Current 30 - 59 Days 60 - 89 Days 90+ Days Total December 31, 2018 Commercial real estate $ 559,523 $ 497 $ — $ 2,073 $ 562,093 Commercial and industrial 381,424 664 82 1,285 383,455 Residential real estate 174,831 2,499 1,314 1,374 180,018 Consumer 998 — 1 — 999 Total $ 1,116,776 $ 3,660 $ 1,397 $ 4,732 $ 1,126,565 December 31, 2017 Commercial real estate $ 507,250 $ 3,066 $ 1,412 $ 34 $ 511,762 Commercial and industrial 373,829 1,397 2,455 5 377,686 Residential real estate 138,613 3,808 1,258 760 144,439 Consumer 985 51 — — 1,036 Total $ 1,020,677 $ 8,322 $ 5,125 $ 799 $ 1,034,923 Impaired Loans: Information as to impaired loans, excluding purchased credit impaired loans, was as follows: (Dollars in thousands) December 31, 2018 December 31, 2017 Nonaccrual loans $ 18,447 $ 14,048 Performing troubled debt restructurings: Commercial and industrial 568 961 Residential real estate 363 261 Total performing troubled debt restructurings 931 1,222 Total impaired loans, excluding purchase credit impaired loans $ 19,378 $ 15,270 Troubled Debt Restructurings: The Company assesses loan modifications to determine whether a modification constitutes a troubled debt restructuring ("TDR"). This applies to all loan modifications except for modifications to loans accounted for in pools under ASC 310-30, which are not subject to TDR accounting/classification. For loans excluded from ASC 310-30 accounting, a modification is considered a TDR when a borrower is experiencing financial difficulties and the Company grants a concession to the borrower. For loans accounted for individually under ASC 310-30, a modification is considered a TDR when a borrower is experiencing financial difficulties and the effective yield after the modification is less than the effective yield at the time the loan was acquired or less than the effective yield of any re-estimation of cash flows subsequent to acquisition in association with consideration of qualitative factors included within ASC 310-40. All TDRs are considered impaired loans. The nature and extent of impairment of TDRs, including those which have experienced a subsequent default, are considered in the determination of an appropriate level of allowance for loan losses. As of December 31, 2018 and December 31, 2017 , the Company had a recorded investment in troubled debt restructurings of $5.9 million and $7.6 million, respectively. The Company has allocated a specific reserve of $258 thousand for those loans at December 31, 2018 and a specific reserve of $975 thousand for those loans at December 31, 2017 . The Company has not committed to lend additional amounts to borrowers whose loans have been modified. As of December 31, 2018 , there were $5.0 million of nonperforming TDRs and $931 thousand of performing TDRs included in impaired loans. As of December 31, 2017 , there were $6.4 million of nonperforming TDRs and $1.2 million of performing TDRs included in impaired loans. All TDRs are considered impaired loans in the calendar year of their restructuring. A loan that has been modified will return to performing status if it satisfies a six-month performance requirement; however, it will continue to be reported as a TDR and considered impaired. The following table presents the recorded investment of loans modified as TDRs during the years ended December 31, 2018 , 2017 and 2016, by type of concession granted. In cases where more than one type of concession was granted, the loans were categorized based on the most significant concession. Concession type Financial effects of (Dollars in thousands) Principal Interest Forbearance Total Total Net Provision For the year ended December 31, 2018 Commercial real estate $ 2,073 $ — $ — 4 $ 2,073 $ 101 $ — Commercial and industrial 1,031 106 — 4 1,137 — 14 Residential real estate 113 — — 2 113 — 5 Total $ 3,217 $ 106 $ — 10 $ 3,323 $ 101 $ 19 For the year ended December 31, 2017 Commercial real estate $ 297 $ — $ 1,229 2 $ 1,526 $ — $ — Residential real estate 784 357 — 3 1,141 — 15 Total $ 1,081 $ 357 $ 1,229 5 $ 2,667 $ — $ 15 For the year ended December 31, 2016 Commercial real estate $ 289 $ — $ — 2 $ 289 $ — $ — Commercial and industrial — — 5,268 3 5,268 — 852 Residential real estate — — 414 3 414 14 — Total $ 289 $ — $ 5,682 8 $ 5,971 $ 14 $ 852 On an ongoing basis, the Company monitors the performance of TDRs to their modified terms. The following tables present the number of loans modified in TDRs during the twelve months ending December 31, 2018, 2017 and 2016 for which there was a subsequent payment default, including the recorded investment as of each period end. A payment on a TDR is considered to be in default once it is greater than 30 days past due. For the year ended December 31, 2018 (Dollars in thousands) Total number of Total recorded Provision for loan losses following a Commercial real estate 3 $ 2,073 $ — Commercial and industrial 1 904 — Total 4 $ 2,977 $ — For the year ended December 31, 2017 (Dollars in thousands) Total number of Total recorded Provision for loan losses following a Commercial real estate 1 $ 1,229 $ — Commercial and industrial 5 — 497 Residential real estate 1 292 — Total 7 $ 1,521 $ 497 For the year ended December 31, 2016 (Dollars in thousands) Total number of loans Total recorded investment Provision for loan losses following a subsequent default Commercial real estate 2 $ 289 $ — Total 2 $ 289 $ — Credit Quality Indicators: 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 Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes commercial and industrial and commercial real estate loans and is performed on an annual basis. The Company uses the following definitions for risk ratings: Pass. Loans classified as pass are higher quality loans that do not fit any of the other categories described below. This category includes loans risk rated with the following ratings: cash/stock secured, excellent credit risk, superior credit risk, good credit risk, satisfactory credit risk, and marginal credit risk. Special Mention. Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company's credit position at some future date. Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Based on the most recent analysis performed, the risk category of loans by class of loans was as follows: (Dollars in thousands) Pass Special Mention Substandard Doubtful Total December 31, 2018 Commercial real estate $ 545,843 $ 10,240 $ 5,966 $ 44 $ 562,093 Commercial and industrial 368,189 2,841 12,425 — 383,455 Total $ 914,032 $ 13,081 $ 18,391 $ 44 $ 945,548 December 31, 2017 Commercial real estate $ 492,731 $ 10,664 $ 8,323 $ 44 $ 511,762 Commercial and industrial 361,740 5,945 9,963 38 377,686 Total $ 854,471 $ 16,609 $ 18,286 $ 82 $ 889,448 For residential real estate loans and consumer loans, the Company evaluates credit quality based on the aging status of the loan and by payment activity. Residential real estate loans and consumer loans are considered nonperforming if 90 days or more past due. Consumer loan types are continuously monitored for changes in delinquency trends and other asset quality indicators. The following presents residential real estate and consumer loans by credit quality: (Dollars in thousands) Performing Nonperforming Total December 31, 2018 Residential real estate $ 177,103 $ 2,915 $ 180,018 Consumer 999 — 999 Total $ 178,102 $ 2,915 $ 181,017 December 31, 2017 Residential real estate $ 141,672 $ 2,767 $ 144,439 Consumer 1,036 — 1,036 Total $ 142,708 $ 2,767 $ 145,475 Purchased Credit Impaired Loans: As part of the Company's previous four acquisitions, the Company acquired purchase credit impaired ("PCI") loans for which there was evidence of credit quality deterioration since origination, and we determined that it was probable that the Company would be unable to collect all contractually required principal and interest payments. The total balance of all PCI loans from these acquisitions was as follows: (Dollars in thousand) Unpaid Principal Balance Recorded Investment December 31, 2018 Commercial real estate $ 7,406 $ 4,344 Commercial and industrial 177 122 Residential real estate 4,974 3,409 Total PCI loans $ 12,557 $ 7,875 December 31, 2017 Commercial real estate $ 10,084 $ 5,771 Commercial and industrial 808 417 Residential real estate 4,068 3,558 Total PCI loans $ 14,960 $ 9,746 The following table reflects the activity in the accretable yield of PCI loans from past acquisitions, which includes total expected cash flows, including interest, in excess of the recorded investment. For the year ended December 31, (Dollars in thousands) 2018 2017 2016 Balance at beginning of period $ 14,452 $ 19,893 $ 27,852 Additions due to acquisitions — — 741 Accretion of income (3,794 ) (5,340 ) (8,412 ) Adjustments to accretable yield 304 121 250 Other activity, net (15 ) (222 ) (538 ) Balance at end of period $ 10,947 $ 14,452 $ 19,893 "Accretion of income" represents the income earned on these loans for the year. "Adjustments to accretable yield" represents the net amount of accretable yield added or removed as a result of the semi-annual re-estimation of expected cash flows. For the years ended December 31, 2018 and 2017, allowance for loans losses on PCI loans decreased by $161 thousand and increased by $234 thousand, respectively. Related Party Loans: We have extended loans to certain of our directors, executive officers, principal shareholders and their affiliates. The aggregate loans outstanding to the directors, executive officers, principal shareholders and their affiliates totaled approximately $4.0 million and $2.1 million , respectively. During 2018 and 2017, there were $2.6 million and $1.1 million , respectively, of new loans and other additions, while repayments and other reductions totaled $731 thousand and $269 thousand , respectively. OFF-BALANCE SHEET ACTIVITIES In the normal course of business, the Company offers a variety of financial instruments with off-balance sheet risk to meet the financing needs of its customers. These financial instruments include outstanding commitments to extend credit, credit lines, commercial letters of credit and standby letters of credit. These are agreements to provide credit, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Off-balance sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies used for loans are used to make such commitments, including obtaining collateral at exercise of the commitment. A summary of the contractual amounts of the Company's exposure to off-balance sheet risk is as follows: December 31, 2018 December 31, 2017 (Dollars in thousands) Fixed Variable Fixed Variable Commitments to make loans $ 8,608 $ 10,900 $ 5,041 $ 8,837 Unused lines of credit 18,672 229,490 12,407 189,787 Unused standby letters of credit 3,861 232 3,584 1,411 Commitments to make loans are generally made for periods of 90 days or less. The fixed rate loan commitments of $8.6 million as of December 31, 2018 , have interest rates ranging from 4.88% to 5.75% and maturities ranging from 5 to 30 years. |
Regulatory Capital Matters
Regulatory Capital Matters | 12 Months Ended |
Dec. 31, 2018 | |
Regulated Operations [Abstract] | |
Regulatory Capital Matters | REGULATORY CAPITAL MATTERS Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Management believed as of December 31, 2018 , the Company and Bank met all capital adequacy requirements to which they were subject. During the first quarter of 2015, regulations implementing the Basel III regulatory capital framework and the Dodd-Frank Wall Street Reform and Consumer Protection Act became effective, certain provisions of which are subject to a multi-year phase-in period. As of January 1, 2019, the rules require the Company to maintain a capital conservation buffer of common equity capital that exceeds by more than 2.5% the minimum risk-weighted assets ratios, which is the fully phased-in amount of the capital conservation buffer. The capital conservation buffer was 1.875% at December 31, 2018 and was 1.25% at December 31, 2017 . Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At December 31, 2018 and December 31, 2017 , the most recent regulatory notifications categorized the Bank as "well capitalized" under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Bank's category. Actual and required capital amounts and ratios are presented below: Actual For Capital Adequacy Purposes For Capital Adequacy Purposes + Capital Conservation Buffer(1) Well Capitalized Under Prompt Corrective Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2018 Common equity tier 1 to risk-weighted assets: Consolidated $ 144,008 11.82 % $ 54,803 4.50 % $ 77,699 6.38 % Bank 147,495 12.12 % 54,780 4.50 % 77,666 6.38 % $ 79,126 6.50 % Tier 1 capital to risk-weighted assets: Consolidated $ 144,008 11.82 % $ 73,071 6.00 % $ 95,967 7.88 % Bank 147,495 12.12 % 73,040 6.00 % 95,926 7.88 % $ 97,386 8.00 % Total capital to risk-weighted assets: Consolidated $ 170,503 14.00 % $ 97,428 8.00 % $ 120,324 9.88 % Bank 159,100 13.07 % 97,386 8.00 % 120,272 9.88 % $ 121,733 10.00 % Tier 1 capital to average assets (leverage ratio): Consolidated $ 144,008 10.21 % $ 56,411 4.00 % $ 56,411 4.00 % Bank 147,495 10.48 % 56,309 4.00 % 56,309 4.00 % $ 70,386 5.00 % December 31, 2017 Common equity tier 1 to risk-weighted assets: Consolidated $ 98,912 9.10 % $ 48,904 4.50 % $ 62,488 5.75 % Bank 111,781 10.29 % 48,891 4.50 % 62,472 5.75 % $ 70,620 6.50 % Tier 1 capital to risk-weighted assets: Consolidated $ 98,912 9.10 % $ 65,205 6.00 % $ 78,790 7.25 % Bank 111,781 10.29 % 65,188 6.00 % 78,768 7.25 % $ 86,917 8.00 % Total capital to risk-weighted assets: Consolidated $ 125,472 11.55 % $ 86,940 8.00 % $ 100,525 9.25 % Bank 123,496 11.37 % 86,917 8.00 % 100,498 9.25 % $ 108,646 10.00 % Tier 1 capital to average assets (leverage ratio): Consolidated $ 98,912 7.92 % $ 49,978 4.00 % $ 49,978 4.00 % Bank 111,781 8.96 % 49,893 4.00 % 49,893 4.00 % $ 62,366 5.00 % _______________________________________________________________________________ (1) Reflects the capital conservation buffer of 1.875% and 1.25% applicable during 2018 and 2017, respectively. Dividend Restrictions - The Company’s primary source of cash is dividends received from the Bank. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. As of December 31, 2018 , the Bank had the capacity to pay the Company a dividend of up to $31.3 million without the need to obtain prior regulatory approval. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value | FAIR VALUE Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1—Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2—Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3—Significant unobservable inputs that reflect a company's own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Company used the following methods and significant assumptions to estimate the fair value of each type of financial instrument: Investment Securities: Securities available for sale are recorded at fair value on a recurring basis as follows: the fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). No securities are valued using a Level 3 approach. Loans Held for Sale, at Fair Value: The fair value of loans held for sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan (Level 2). Loans Measured at Fair Value: During the normal course of business, loans originated with the initial intention to sell but not ultimately sold, are transferred from held for sale to our portfolio of loans held for investment at fair value as the Company adopted the fair value option at origination. The fair value of these loans is determined by obtaining fair value pricing from a third-party software, and then layering an additional adjustment, ranging from 5 to 75 basis points, as determined by management, depending on the reason for the transfer. Due to the adjustments made, the Company classifies the loans transferred from loans held for sale as recurring Level 3. Impaired Loans: Impaired loans are measured and recorded at fair value on a non-recurring basis. All of our nonaccrual loans and trouble debt restructured loans are considered impaired and are reviewed individually for the amount of impairment, if any. The fair value of impaired loans is estimated using one of several methods, including the fair value of the collateral or the present value of the expected future cash flows discounted at the loan's effective interest rate. For loans that are collateral dependent, the fair value of each loan’s collateral is generally based on estimated market prices from an independently prepared appraisal. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Non-real estate collateral may be valued using an appraisal, net book value per the borrower's financial statements, or aging reports, adjusted or discounted based on management's historical knowledge, changes in market conditions from the time of the valuation, and management's expertise and knowledge of the client and client's business. Such adjustments are considered unobservable and the fair value measurement is categorized as a Level 3 measurement. Other Real Estate Owned: The fair value of other real estate owned is based on recent real estate appraisals which are generally updated annually. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales, cost, and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Other real estate owned properties are evaluated on a quarterly basis for additional impairment and adjusted accordingly. Appraisals for both collateral-dependent impaired loans and real estate owned are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by either the Company or the Company's appraisal services vendor. Once received, management reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. Management monitors the actual selling price of collateral that has been sold to the most recent appraised value to determine what additional adjustment should be made to the appraisal value to arrive at fair value. Derivatives: Customer-initiated derivatives are traded in over-the counter markets where quoted market prices are not readily available. Fair value of customer-initiated derivatives is measured on a recurring basis using valuation models that use market observable inputs (Level 2). Mortgage banking related derivatives including commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of these mortgage loans are recorded at fair value on a recurring basis. The fair value of these commitments is based on the fair value of related mortgage loans determined using observable market data (Level 2). Interest rate lock commitments are adjusted for expectations of exercise and funding. This adjustment is not considered to be material input. Assets and liabilities measured at fair value on a recurring basis are summarized below: (Dollars in thousands) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2018 Securities available for sale: U.S. government sponsored entities and agencies $ 2,397 $ — $ 2,397 $ — State and political subdivision 75,146 — 75,146 — Mortgage-backed securities: residential 9,739 — 9,739 — Mortgage-backed securities: commercial 12,382 — 12,382 — Collateralized mortgage obligations: residential 18,671 — 18,671 — Collateralized mortgage obligations: commercial 31,988 — 31,988 — U.S. Treasury 20,481 — 20,481 — SBA 15,688 — 15,688 — Asset backed securities 3,842 — 3,842 — Corporate bonds 13,924 — 13,924 — Total securities available for sale 204,258 — 204,258 — Loans held for sale 5,595 — 5,595 — Loans measured at fair value: Residential real estate 4,571 — — 4,571 Derivative assets: Customer-initiated derivatives 1,126 — 1,126 — Forward contracts related to mortgage loans to be delivered for sale 22 — 22 — Interest rate lock commitments 198 — 198 — Total assets at fair value $ 215,770 $ — $ 211,199 $ 4,571 Derivative liabilities: Customer-initiated derivatives 1,126 — 1,126 — Forward contracts related to mortgage loans to be delivered for sale 43 — 43 — Total liabilities at fair value $ 1,169 $ — $ 1,169 $ — December 31, 2017 Securities available for sale: State and political subdivision $ 53,224 $ — $ 53,224 $ — Mortgage-backed securities: residential 8,431 — 8,431 — Mortgage-backed securities: commercial 9,819 — 9,819 — Collateralized mortgage obligations: residential 19,221 — 19,221 — Collateralized mortgage obligations: commercial 20,557 — 20,557 — U.S. Treasury 23,573 — 23,573 — SBA 12,616 — 12,616 — Corporate bonds 3,528 — 3,528 — Total securities available for sale $ 150,969 $ — $ 150,969 $ — Loans held for sale 4,548 — 4,548 — Loans measured at fair value: Residential real estate 4,291 — — 4,291 Total assets at fair value $ 159,808 $ — $ 155,517 $ 4,291 There were no transfers between levels within the fair value hierarchy, within a specific category, during the year ended December 31, 2018 or 2017. The following table summarizes the changes in Level 3 assets measured at fair value on a recurring basis. (Dollars in thousands) Loans held for investment For the year ended December 31, 2018 Beginning balance $ 4,291 Transfers from loans held for sale 544 Gains (losses): Recorded in "Mortgage banking activities" (108 ) Repayments (156 ) Ending balance $ 4,571 For the year ended December 31, 2017 Beginning balance $ 3,287 Transfers from loans held for sale 1,587 Gains (losses): Recorded in "Mortgage banking activities" 77 Repayments (660 ) Ending balance $ 4,291 The Company has elected the fair value option for loans held for sale. These loans are intended for sale and the Company believes that the fair value is the best indicator of the resolution of these loans. Interest income is recorded based on the contractual terms of the loan and in accordance with the Company's policy on loans held for investment. There were no loans held for sale that were on nonaccrual status or 90 days past due as of December 31, 2018 or December 31, 2017 . As of December 31, 2018 and December 31, 2017 , the aggregate fair value, contractual balance (including accrued interest), and gain or loss for loans held for sale carried at fair value was as follows: (Dollars in thousands) December 31, 2018 December 31, 2017 Aggregate fair value $ 5,595 $ 4,548 Contractual balance 5,512 4,466 Unrealized gain 83 82 The total amount of gains (losses) from changes in fair value of loans held for sale included in "Mortgage banking activities" for the years ended December 31, 2018, 2017 and 2016 were as follows: For the year ended December 31, (Dollars in thousands) 2018 2017 2016 Change in fair value $ 1 $ (172 ) $ 167 Assets measured at fair value on a non-recurring basis are summarized below: (Dollars in thousands) Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs December 31, 2018 Impaired loans: Commercial and industrial $ 3,337 $ — $ — $ 3,337 Total $ 3,337 $ — $ — $ 3,337 December 31, 2017 Other real estate owned $ 652 $ — $ — $ 652 Other assets (1) 1,654 — — 1,654 Total $ 2,306 $ — $ — $ 2,306 (1) Impaired other assets represent building and furniture held-for-sale, which had a writedown of $140 thousand during the year ended December 31, 2017 and a writedown of $10 thousand during the year ended December 31, 2018 . The building held for sale was sold prior to December 31, 2018. The Company recorded $278 thousand of specific allowance allocations and no chargeoffs related to impaired loans at fair value in the year ended December 31, 2018. There were no impaired loans at fair value at December 31, 2017 . Other real estate owned measured at fair value had a net carrying amount of $652 thousand at December 31, 2017 . There were no write downs in other real estate owned during the year ended December 31, 2017 . There were no other real estate owned assets at fair value at December 31, 2018 . The table below presents quantitative information about the significant unobservable inputs for assets measured at fair value on a nonrecurring basis at December 31, 2018 and December 31, 2017 : (Dollars in thousands) Fair value at December 31, 2018 Valuation Technique(s) Significant Unobservable Input(s) Discount % Impaired loans $ 3,337 Discounted appraisals Collateral discounts 17-50% (Dollars in thousands) Fair value at Valuation Significant Discount % Range Other real estate owned $ 652 Sales comparison approach per appraisal Discount for type of collateral and age of appraisal 0-5% Other assets (building held for sale) 1,654 Sales comparison approach per appraisal Discount for type of collateral and age of appraisal 0-10% The carrying amounts and estimated fair values of financial instruments, excluding those previously presented unless otherwise noted, at December 31, 2018 and December 31, 2017 were as follows: (Dollars in thousands) Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2018 Financial assets: Cash and cash equivalents $ 33,296 $ 27,072 $ 6,224 $ — Federal Home Loan Bank stock 8,325 NA NA NA Net loans 1,114,999 — — 1,113,648 Accrued interest receivable 4,207 — 1,210 2,997 Financial liabilities: Deposits 1,134,635 — 1,137,575 — Borrowings 99,574 — 100,602 — Subordinated notes 14,891 — 15,450 — Accrued interest payable 1,674 — 1,674 — December 31, 2017 Financial assets: Cash and cash equivalents $ 63,661 $ 17,712 $ 45,949 $ — Federal Home Loan Bank stock 8,303 NA NA NA Net loans 1,023,210 — — 1,025,319 Accrued interest receivable 3,730 — 807 2,923 Financial liabilities: Deposits 1,120,382 — 1,122,473 — Borrowings 47,833 — 47,473 — Subordinated notes 14,844 — 14,993 — Accrued interest payable 908 — 908 — The methods and assumptions, not previously presented, used to estimate fair value are described as follows: (a) Cash and Cash Equivalents The carrying amounts of cash on hand and non-interest due from bank accounts approximate fair values and are classified as Level 1. The carrying amounts of fed funds sold and interest bearing due from bank accounts approximate fair values and are classified as Level 2. (b) FHLB Stock It is not practical to determine the fair value of FHLB stock due to restrictions placed on its transferability. (c) Loans Fair value of loans, excluding loans held for sale, are estimated as follows: Fair values for all loans are estimated using present value of future estimated cash flows, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality, resulting in a Level 3 classification. Impaired loans are values at the lower of cost or fair value as described previously. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price. (d) Deposits The fair values disclosed for demand deposits (e.g., interest and non-interest checking, passbook savings, and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount) resulting in a Level 2 classification. Fair values for fixed and variable rate certificates of deposit are estimated using a present value of future estimated cash flows calculation that applies interest rates currently being offered on certificates of aggregated expected monthly maturities on time deposits resulting in a Level 2 classification. (e) Borrowings The fair values of the Company's short-term and long-term borrowings are estimated using present value of future estimated cash flows using current interest rates offered to the Company for similar types of borrowing arrangements, resulting in a Level 2 classification. (f) Subordinated notes The fair value of the Company's subordinated notes is calculated based on present value of future estimated cash flows using current interest rates offered to the Company for similar types of borrowing arrangements, resulting in a Level 2 classification. (g) Accrued Interest Receivable/Payable The carrying amounts of accrued interest approximate fair value resulting in a Level 3 classification for receivable and a Level 2 classification for payable, consistent with their associated assets/liabilities. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | DERIVATIVES The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. These interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions with approved, reputable, independent counterparties with substantially matching terms. The agreements are considered standalone derivatives, and changes in the fair value of derivatives are reporting in earnings as non-interest income. Credit risk arises from the possible inability of counterparties to meet the terms of their contracts. The Company's exposure is limited to the replacement value of the contracts rather than the notional, principal or contract amounts. There are provisions in the agreements with the counterparties that allow for certain unsecured credit exposure up to an agreed threshold. Exposures in excess of the agreed thresholds are collateralized. In addition, the Company minimizes credit risk through credit approvals, limits, and monitoring procedures. Commitments to fund certain mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of mortgage loans to third party investors are considered derivatives. It is the Company's practice to enter into forward commitments for the future delivery of residential mortgage loans when interest rate lock commitments are entered into in order to economically hedge the effect of changes in interest rates resulting from its commitments to fund the loans. These mortgage banking derivatives are not designated in hedge relationships. Fair values were estimated based on changes in mortgage interest rates from the date of the commitments. Changes in the fair values of these mortgage-banking derivatives are included in mortgage banking activities. The following table presents the notional amount and fair value of the Company's derivative instruments held or issued in connection with customer initiated and mortgage banking activities: December 31, 2018 (Dollars in thousands) Notional Amount Fair Value Included in other assets Customer-initiated and mortgage banking derivatives: Customer-initiated derivatives $ 35,733 $ 1,126 Forward contracts related to mortgage loans to be delivered for sale 5,241 22 Interest rate lock commitments 18,375 198 Total derivatives included in other assets $ 59,349 $ 1,346 Included in other liabilities: Customer-initiated and mortgage banking derivatives: Customer-initiated derivatives $ 35,733 $ 1,126 Forward contracts related to mortgage loans to be delivered for sale 11,195 43 Total derivatives included in other liabilities $ 46,928 $ 1,169 The following table presents the gains (losses) related to derivative instruments reflecting the changes in fair value: For the year ended December 31, (Dollars in thousands) Location of Gain (Loss) 2018 2017 2016 Forward contracts related to mortgage loans to be delivered for sale Mortgage Banking Activities $ (69 ) $ (106 ) $ 99 Interest rate lock commitments Mortgage Banking Activities 142 (28 ) (23 ) Total gain (loss) recognized in income $ 73 $ (134 ) $ 76 Balance Sheet Offsetting: Certain financial instruments, including customer-initiated derivatives and interest rate swaps, may be eligible for offset in the consolidated balance sheets and/or subject to master netting arrangements or similar agreements. The Company is party to master netting arrangements with its financial institution counterparties; however, the Company does not offset assets and liabilities under these arrangements for financial statement presentation purposes based on an accounting policy election. The table below presents information about the Company's financial instruments that are eligible for offset. Gross amounts not offset in the statements of financial position (Dollars in thousands) Gross amounts recognized Gross amounts offset in the statements of financial condition Net amounts presented in the statements of financial condition Financial instruments Collateral (received)/posted Net amount December 31, 2018 Offsetting derivative assets: Customer initiated derivatives $ 1,126 — $ 1,126 — — $ 1,126 Offsetting derivative liabilities: Customer initiated derivatives $ 1,126 — $ 1,126 — $ 1,020 $ 106 |
Parent Company Financial Statem
Parent Company Financial Statements | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Financial Statements | PARENT COMPANY FINANCIAL STATEMENTS Balance Sheets—Parent Company (Dollars in thousands) December 31, 2018 December 31, 2017 Assets Cash and cash equivalents $ 9,690 $ 1,158 Investment in banking subsidiary 155,248 120,829 Investment in captive insurance subsidiary 1,622 663 Income tax benefit 393 339 Other assets 21 30 Total assets $ 166,974 $ 123,019 Liabilities Subordinated notes $ 14,891 $ 14,844 Accrued expenses and other liabilities 323 215 Total liabilities 15,214 15,059 Shareholders' equity 151,760 107,960 Total liabilities and shareholders' equity $ 166,974 $ 123,019 Statements of Income and Comprehensive Income—Parent Company For the year ended December 31, (Dollars in thousands) 2018 2017 2016 Income Dividend income from banking subsidiary $ — $ — $ 14,000 Total income — — 14,000 Expenses Interest on subordinated notes $ 1,015 $ 1,015 $ 1,015 Other expenses 715 1,222 352 Total expenses 1,730 2,237 1,367 (Loss) income before income taxes and equity in undistributed net earnings of subsidiaries (1,730 ) (2,237 ) 12,633 Income tax benefit 425 686 478 Equity in undistributed earnings of subsidiaries 15,691 11,392 (2,065 ) Net income $ 14,386 $ 9,841 $ 11,046 Other comprehensive income (loss) (801 ) 343 (775 ) Total comprehensive income, net of tax $ 13,585 $ 10,184 $ 10,271 Statements of Cash Flows—Parent Company For the year ended December 31, (Dollars in thousands) 2018 2017 2016 Cash flows from operating activities Net income $ 14,386 $ 9,841 $ 11,046 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of subsidiaries (15,691 ) (11,392 ) 2,065 Stock based compensation expense 314 329 139 (Increase) decrease in other assets, net (45 ) 1,271 (480 ) Increase (decrease) in other liabilities, net (79 ) 215 (5 ) Net cash provided by (used in) operating activities (1,115 ) 264 12,765 Cash flows from investing activities Cash used in acquisitions — — (16,518 ) Capital contributions to captive subsidiary — (250 ) — Capital infusion to subsidiaries (20,000 ) — — Net cash used in investing activities (20,000 ) (250 ) (16,518 ) Cash flows from financing activities Net proceeds from issuance of common stock related to initial public offering 29,030 — — Common stock dividend paid (662 ) — — Proceeds from exercised stock options 1,279 605 300 Net cash provided by financing activities 29,647 605 300 Net increase (decrease) in cash and cash equivalents 8,532 619 (3,453 ) Beginning cash and cash equivalents 1,158 539 3,992 Ending cash and cash equivalents $ 9,690 $ 1,158 $ 539 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The calculation of basic and diluted earnings per share for each period noted below was as follows: For the year ended December 31, (Dollars in thousands, except per share data) 2018 2017 2016 Basic: Net Income attributable to common shareholders $ 14,386 $ 9,841 $ 11,046 Weighted average common shares outstanding 7,376,507 6,388,328 6,340,814 Basic earnings per share $ 1.95 $ 1.54 $ 1.74 Diluted: Net Income attributable to common shareholders $ 14,386 $ 9,841 $ 11,046 Weighted average common shares outstanding 7,376,507 6,388,328 6,340,814 Add: Dilutive effects of assumed exercises of stock options 147,411 221,668 208,608 Weighted average common and dilutive potential common shares outstanding 7,523,918 6,609,996 6,549,422 Diluted earnings per common share $ 1.91 $ 1.49 $ 1.69 Stock options for 26,301 shares and 64,230 shares of common stock were not considered in computing diluted earnings per common share for the years ended December 31, 2018 and 2016 because they were antidilutive. There were no antidilutive stock options for the year ended December 31, 2017 . |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | QUARTERLY FINANCIAL DATA (UNAUDITED) The following tables present the unaudited quarterly financial data for the years ended December 31, 2018 and 2017: For the year ended December 31, 2018 (In thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Interest income $ 14,774 $ 15,380 $ 16,629 $ 17,041 Interest expense 2,647 2,965 3,560 4,228 Net interest income 12,127 12,415 13,069 12,813 Provision (benefit) for loan losses 554 (710 ) 619 (51 ) Net interest income after provision (benefit) for loan losses 11,573 13,125 12,450 12,864 Noninterest income 1,372 1,452 1,924 2,307 Noninterest expense 9,135 9,705 10,454 10,384 Income before income taxes 3,810 4,872 3,920 4,787 Income tax provision 642 860 665 836 Net income $ 3,168 $ 4,012 $ 3,255 $ 3,951 Earnings per common share: Basic $ 0.48 $ 0.54 $ 0.42 $ 0.51 Diluted 0.47 0.53 0.41 0.50 Cash dividends declared per common share 0.03 0.03 0.03 0.03 For the year ended December 31, 2017 (In thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Interest income $ 13,447 $ 14,034 $ 13,752 $ 14,374 Interest expense 1,703 1,928 2,074 2,373 Net interest income 11,744 12,106 11,678 12,001 Provision for loan losses 198 68 194 956 Net interest income after provision for loan losses 11,546 12,038 11,484 11,045 Noninterest income 1,380 1,784 1,941 1,397 Noninterest expense 8,677 8,851 9,331 9,192 Income before income taxes 4,249 4,971 4,094 3,250 Income tax provision 1,497 1,650 1,259 2,317 Net income $ 2,752 $ 3,321 $ 2,835 $ 933 Earnings per common share: Basic $ 0.43 $ 0.52 $ 0.44 $ 0.15 Diluted 0.42 0.50 0.43 0.14 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On January 23, 2019, the Company announced the approval by its Board of Directors of a repurchase program under which the Company is authorized to repurchase, from time to time as the Company deems appropriate, up to an aggregate of shares of the Company’s common stock with an aggregate purchase price of up to $5 million . The repurchase program began on January 23, 2019 and expires on December 31, 2020. The share repurchase program does not obligate the Company to repurchase any dollar amount or number of shares, and the program may be extended, modified, suspended or discontinued at any time. As of March 15, 2019 , the Company had repurchased a total of 46,626 shares at an average price of $ 23.67 per share. The shares repurchased in the amount of $ 1.1 million are held as treasury stock. On March 21, 2019, the Company declared a first quarter 2019 cash dividend of $0.04 per share, payable on April 15, 2019. The first quarter cash dividend of $0.04 per share represents an increase of $0.01 per share, compared to $0.03 per share declared in prior quarter. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation: The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and conform to predominant practices within the banking industry. Management of the Company has made a number of estimates and assumptions related to the reporting of assets and liabilities to prepare the consolidated financial statements in conformity with GAAP. Actual results may differ from those estimates. In the opinion of management, all adjustments, consisting of normal recurring accruals considered necessary for a fair presentation of the results of operations for annual periods presented herein, have been included. Some items in the prior year financial statements were reclassified to conform to the current presentation. Such items had no impact on net income or shareholder’s equity. |
Principles of Consolidation | Principles of Consolidation: The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, the Bank and Hamilton Court, after elimination of significant intercompany transactions and accounts. |
Business Combinations | Business Combinations The Company accounts for business combinations under the acquisition method of accounting. Under the acquisition method, tangible and intangible identifiable assets acquired, liabilities assumed and any noncontrolling interests in the acquiree are recorded at fair value as of the acquisition date. The Company includes the results of operations of the acquired companies in the consolidated statements of income from the date of acquisition. Transaction costs and costs to restructure the acquired company are expensed as incurred. Goodwill is recognized as the excess of the acquisition price over the estimated fair value of the net assets acquired. If the fair value of the net assets acquired is greater than the acquisition price, a bargain purchase gain is recognized and recorded in noninterest income. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand, amounts due from banks, which includes amounts on deposit with the Federal Reserve, interest-bearing deposits with banks or other financial institutions and federal funds sold. Generally, federal funds are sold for one‑day periods, but not longer than 30 days. |
Investment Securities | Investment Securities Investment securities consist of debt securities of the U.S. Treasury, government sponsored entities, states, counties, municipalities, corporations, agency mortgage-backed securities and non-agency mortgage-backed securities. Securities transactions are recorded on a trade date basis. Securities are classified as available for sale when the Company intends to sell them before maturity. Available-for-sale securities are recorded at fair value. Unrealized gains and losses, net of the related tax effect, on available-for-sale securities are included in other comprehensive income and the related accumulated unrealized holding gains and losses are reported as a separate component of shareholders’ equity until realized. On a quarterly basis, the Company makes an assessment to determine whether there have been any events or circumstances to indicate that a security for which there is an unrealized loss is impaired on an other than temporary basis. This determination requires significant judgment. A decline in the fair value of any available-for-sale security below cost that is deemed other than temporary results in a charge to earnings and the establishment of a new cost basis for the security. In estimating other-than-temporary impairment (“OTTI”) losses, we consider the severity and duration of the impairment; the financial condition and near-term prospects of the issuer, which for debt securities considers external credit ratings and recent downgrades; projected cash flows on covered non-agency mortgage-backed securities; and the intent and ability of the Company to hold the security for a period of time sufficient for a recovery in value. Management evaluates securities for other-than-temporary impairment more frequently when economic or market conditions warrant such an evaluation. Interest income includes amortization of purchase premiums or discounts. Premiums and discounts on securities are amortized on the level-yield method. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Also, when applicable, realized gains and losses are reported as a reclassification adjustment, net of tax, in other comprehensive income. |
Federal Home Loan Bank (FHLB) Stock | Federal Home Loan Bank (FHLB) Stock The Bank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. |
Loans Held for Sale | Loans Held for Sale Loans held for sale consist of loans originated with the intent to sell. Loans held for sale are carried at fair value, determined individually, as of the balance sheet date. The Company believes the fair value method better reflects the economic risks associated with these loans. Fair value measurements on loans held for sale are based on quoted market prices for similar loans in the secondary market, market quotes from anticipated sales contracts and commitments, or contract prices from firm sales commitments. Fair value includes the servicing value of the loans as well as any accrued interest. Loans held for sale are generally sold with servicing rights released, except for Small Business Administration and United States Department of Agriculture guaranteed loans, which are sold with servicing retained. The changes in the fair value of loans held for sale are reflected in mortgage banking activities on the consolidated statements of income . |
Loans | Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of unamortized deferred loan fees and costs and net of any purchase premiums and discounts. Interest income is recorded on the accrual basis, in accordance with the terms of the respective loan. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income without anticipating prepayments. Loans are considered delinquent when principal or interest payments are past due 30 days or more; delinquent loans may remain on accrual status between 30 days and 89 days past due. Loans on which the accrual of interest has been discontinued are designated as nonaccrual loans. Interest income on mortgage and commercial loans is discontinued when principal or interest payments are past due 90 days, unless the loan is well-secured and in process of collection. Consumer loans are typically charged off no later than 120 days past due. When loans are placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income. Interest received on such loans is accounted for on the cash-basis or cost recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. |
Certain Purchased Loans | Certain Purchased Loans The Company purchases individual loans and groups of loans, some of which have shown evidence of credit deterioration since origination. These purchased credit impaired (“PCI”) loans are recorded at the amount paid or at fair value at acquisition in a business combination, such that there is no carryover of the seller’s allowance for loan losses. After acquisition, losses are recognized by an increase in the provision for loan losses. These PCI loans are accounted for individually or aggregated into pools of loans based on common risk characteristics such as credit grade, loan type, and date of origination. The Company estimates the amount and timing of expected cash flows for each purchased loan or pool, and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan or pool ( accretable yield). The excess of the loan’s or pool’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, an impairment loss is recognized by establishing an allocation for the loan or pool in the allowance for loan losses. If the present value of expected cash flows is greater than the carrying amount, it is recognized, prospectively, as loan interest income. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. A loan is impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Loans over $250 thousand are individually evaluated for impairment. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans, are collectively evaluated for impairment, and accordingly, they are not separately identified for impairment disclosures. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings, are classified as impaired, regardless of size, and are measured for impairment based upon the present value of estimated future cash flows using the loan’s effective rate at inception or, if considered collateral dependent, based upon the fair value of the collateral. For troubled debt restructurings that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses. An allowance for loan losses for purchased credit impaired loans is recorded when projected future cash flows decrease. The measurement of impairment on these loans or pools of loans is based upon the excess of the loan or pool’s carrying value over the present value of the projected future cash flows, discounted at the last accounting yield applicable to the loan or pool of loans. The general component covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the most recent 36 months. The historical loss estimates for loans prior to 2017 were based primarily on the actual historical loss experienced by our peer banks combined with a small factor representing our own loss history. Starting in 2017, the Company modified its methodology on historical loss analysis to incorporate and fully rely on the Bank’s own historical loss data, which did not have a material impact. The historical loss estimates are established by loan type including commercial and industrial and commercial real estate. This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment. These economic factors include consideration of the following: local and national economic conditions; trends in underwriting standards and lending policies; trends in portfolio volume, maturity and composition (impact of credit concentrations); experience, ability and depth of lending management and staff; trends in delinquencies and nonaccruals; results of independent loan review; change in value for collateral dependent loans; high loan growth; unseasoned bank portfolio; specialized financing; and other factors (legal, regulatory, competition). The following portfolio segments have been identified: Commercial real estate loans are secured by a mortgage lien on the real estate property. Owner-occupied real estate loans generally are considered to carry less risk than non-owner occupied real estate (properties) because the Company considers them to be less sensitive to the condition of the commercial real estate market. Repayment is based on the operations of the business. Investment real estate loans rely on rental income for loan repayment, which involves risk such as rent rollover, tenants going out of business, and competitive properties in the area. Construction and land development loans generally are considered the riskiest class of commercial real estate, due to possible cost overruns, contractor/lien issues, loss of tenant, etc. Risk of loss is managed by adherence to standard loan policies that establish certain levels of performance prior to the extension of a loan to the borrower. Commercial and Industrial loans have varying degrees of risk, but overall are considered to have less risk than commercial real estate. These loans are generally short-term in nature and are almost always backed by collateral. Unsecured commercial loans are supported by strong borrower(s)/guarantor(s) in terms of liquidity, net worth, cash flow, etc. Collateral security of these loans is relatively liquid (i.e., accounts receivable, inventory, equipment) and readily available to cover potential loan loss. Credit risk is managed through standardized loan policies, established and authorized credit limits, portfolio management and the diversification of industries. Consumer and Residential Real Estate loan portfolios, unlike commercial, tend to be composed of many relatively homogeneous loans. Loan repayment is based on personal cash flow. To assess the risk of a consumer loan request, loan purpose, collateral, debt to income ratio, credit bureau report, and cash flow/employment verification are analyzed. A certain level of security is provided through liens on credits supported by collateral. Economic conditions that affect consumers in the Bank’s market have a direct impact on the credit quality of these loans. Higher levels of unemployment, lower levels of income growth and weaker economic growth are factors that may adversely impact consumer loan credit quality. The majority of residential real estate loans originated by the Bank conform to secondary market underwriting standards and are sold within a short timeframe to unaffiliated third parties, including the future servicing rights to the loans. The credit underwriting standards for these loans require a certain level of documentation, verifications, valuations, and overall credit performance of the borrower. |
Premises and Equipment | Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the shorter of the life of the asset or the expected term of the lease. We periodically review the carrying value of our long‑lived assets to determine if impairment has occurred or whether changes in circumstances have occurred that would require a revision to the remaining useful life. In making such determination, we evaluate the performance, on an undiscounted basis, of the underlying operations or assets which give rise to such amount. |
Other Real Estate Owned (OREO) and Repossessed Assets | Other Real Estate Owned ("OREO") and Repossessed Assets Other real estate owned and repossessed assets represent properties/assets acquired through acquisition, foreclosure, repossession process or other proceedings, and are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Fair value for OREO is based on an appraisal performed upon foreclosure. Property is evaluated regularly to ensure the recorded amount is supported by its fair value less estimated costs to dispose. After the initial foreclosure appraisal, fair value is generally determined by an annual appraisal unless known events warrant adjustments to the recorded value. Revenue from the operations of OREO is included in other income in the consolidated statements of income, and expense from the operations of OREO and decreases in valuations are included in other expense in the consolidated statements of income. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill resulting from business combinations is generally determined as the excess of the fair value of the consideration transferred over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exists that indicate that a goodwill impairment test should be performed. The Company has selected September 30 as the date to perform the annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on our balance sheet. |
Mortgage Servicing Rights | Mortgage Servicing Rights When loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amounts. Impairment is determined by grouping assets based on predominant risk characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of impairment no longer exists for a particular grouping, a reduction of the provision for loan losses may be recorded as an increase to income. Servicing fee income, which is reported on the income statement as other charges and fees, is recorded for fees earned for servicing loans. The fees are based on contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The amortization of servicing rights is netted against loan servicing fee income. |
Bank-owned Life Insurance | Bank-owned Life Insurance The Bank has purchased life insurance policies on certain key executives and senior managers. Bank-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. |
Derivatives | Derivatives All derivatives are recognized on the consolidated balance sheet as a component of other assets or other liabilities at their fair value. Customer-initiated derivatives refer to the Company utilizing interest rate derivatives to provide a service to certain qualifying customers to help facilitate their respective risk management strategies. Therefore, these derivatives are not used to manage interest rate risk in the Company's assets or liabilities. The Company generally takes offsetting positions with dealer counterparties to mitigate the valuation risk of the customer-initiated derivatives. Income primarily results in the spread between the customer derivatives and offsetting dealer positions. The gains or losses derived from changes in fair value are recognized in current earnings during the period of change in other non-interest income on the consolidated statements of income. Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of these mortgage loans are accounted for as freestanding derivatives. Fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates from the date the interest on the loan is locked. The Company enters into forward commitments for the future delivery of mortgage loans when interest rate locks are entered into in order to hedge the change in interest rates resulting from its commitments to fund the loans. Changes in the fair values of these derivatives are included in mortgage banking activities in the consolidated statements of income. |
Secured Borrowings / Transfers of Financial Assets | Secured borrowing Transfers of financial assets that do not qualify for sale accounting are reported as collateralized borrowings. Accordingly, the related assets remain on the Company’s balance sheet and continue to be reported and accounted for as if the transfer had not occurred. Cash proceeds from these transfers are reported as liabilities, with attributable interest expense recognized over the life of the related transactions. Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Loan Commitments and Related Financial Instruments | Loan Commitments and Related Financial Instruments Financial instruments include off‑balance sheet credit instruments, such as commitments to make loans and standby letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. |
Loss Contingencies | Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are any matters at this time that will have a material effect on the consolidated financial statements. |
Share-Based Compensation | Stock-Based Compensation Compensation cost is recognized for stock options and restricted stock awards issued to employees, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. Additionally, the Company accounts for forfeitures as they occur. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale, net of taxes and reclassifications. |
Income Taxes | Income Taxes Income tax expense or benefit is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. |
Dividend Restriction | Dividend Restriction Banking regulations require maintaining certain capital levels and may limit the dividends paid by the Bank to the holding company or by the holding company to shareholders. The total amount of dividends which may be paid out at any date is also generally limited to retained earnings. |
Operating Segments | Operating Segments While chief decision-makers monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Operating results are not reviewed by senior management to make resource allocation or performance decisions. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment. |
Recent Accounting Standards | Recent Accounting Standards: Revenue Recognition In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09 "Revenue from Contracts with Customers (Topic 606)," which provides a framework for revenue recognition that replaces the existing industry and transaction specific requirements under the existing standards. ASU 2014-09 requires an entity to apply a five-step model to determine when to recognize revenue and at what amount. The model specifies that revenue should be recognized when (or as) an entity transfers control of goods or services to a customer at the amount in which the entity expects to be entitled. Depending on whether certain criteria are met, revenue should be recognized either over time, in a manner that depicts the entity's performance, or at a point in time, when control of the goods or services are transferred to the customer. The amendments of ASU 2014-09 may be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application. The guidance will be effective for the Company for the fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. The Company plans to adopt these amendments within the time frames stated above. The Company is continuing to evaluate the impact ASU 2014-09 will have on our consolidated financial statements. Based on this evaluation to date, management has determined that the majority of the revenues earned by the Company are not within the scope of ASU 2014-09, and that a few of the revenue streams that have been identified as being in scope would include service charges and interchange fees. Management will continue to evaluate the impact the adoption of ASU 2014-09 will have on our consolidated financial statements, focusing on noninterest income sources within the scope of ASU 2014-09 as well as new disclosures required by these amendments; however, the adoption of ASU 2014-09 is not expected to have a material impact on the Company's consolidated financial statements but is expected to result in additional disclosures. Financial Instruments In January 2016, the FASB issued ASU No. 2016-01, "Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities," to improve the accounting for financial instruments. This ASU requires equity investments with readily determinable fair values to be measured at fair value with changes recognized in net income regardless of classification. For equity investments without a readily determinable fair value, the value of the investment would be measured at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer instead of fair value, unless a qualitative assessment indicates impairment. Additionally, this ASU requires the separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements, as well as the required use of exit pricing when measuring the fair value of financial instruments for disclosure purposes. The guidance will be effective for the Company for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019, and is to be applied prospectively with a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. Management is in the planning stages of developing processes and procedures to comply with the disclosures requirements of this ASU, which could impact the disclosures the Company makes related to fair value of its financial instruments. This standard is not expected to have a material impact to the Company's consolidated financial statements. The Company is planning to adopt this new guidance within the time frames stated above. Leases In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)," to improve transparency and comparability across entities regarding leasing arrangements. This ASU requires the recognition of a separate lease liability representing the required discounted lease payments over the lease term and a separate lease asset representing the right to use the underlying asset during the same lease term. Additionally, this ASU provides clarification regarding the identification of certain components of contracts that would represent a lease as well as requires additional disclosures to the notes of the financial statements. The guidance will be effective for the Company for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020, and is to be applied under an optional transition method. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. Additionally, the Company does not expect to significantly change operating lease agreements prior to adoption. The Company is planning to adopt this new guidance within the time frames stated above. Employee Share-Based Compensation In March 2016, the FASB issued ASU No. 2016-09, "Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting," to simplify the accounting for several areas of share-based payment transactions. This includes the recognition of all excess tax benefits and tax deficiencies as income tax expense instead of surplus, the classification on the statement of cash flows of excess tax benefits and taxes paid when the employer withholds shares for tax-withholding purposes. Additionally, related to forfeitures, the ASU provides the option to estimate the number of awards that are expected to vest or account for forfeitures as they occur. This guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and is to be applied under a modified retrospective and retrospective approach based upon the specific amendment of the ASU. The Company early adopted this new guidance during the fourth quarter 2017, which did not have a material impact on to the Company's consolidated financial statements. Allowance for Credit Losses In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," to replace the current incurred loss methodology for recognizing credit losses, which delays recognition until it is probable a loss has been incurred, with a methodology that reflects an estimate of all expected credit losses and considers additional reasonable and supportable forecasted information when determining credit loss estimates. This impacts the calculation of the allowance for credit losses for all financial assets measured under the amortized cost basis, including PCI loans at the time of and subsequent to acquisition. Additionally, credit losses related to available-for-sale debt securities would be recorded through the allowance for credit losses and not as a direct adjustment to the amortized cost of the securities. Based on the ASU No. 2018-09, "Codification Improvements to Topic 326, Financial Instruments—Credit Losses," the guidance will be effective for the Company for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years, and is to be applied under a modified retrospective approach. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements as well as the impact on current systems and processes. At this time, the Company is reviewing potential methodologies for estimating expected credit losses using reasonable and supportable forecast information and has identified certain data and system requirements. Once adopted, we expect our allowance for loan losses to increase through a one-time adjustment to retained earnings; however, until our evaluation is complete, the estimated increase in allowance will be unknown. The Company is planning to adopt this new guidance within the time frames stated above. Income Taxes - Tax Cuts and Jobs Act In February 2018, the FASB issued ASU No. 2018-02, "Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (Topic 220)," which allows an entity to elect a reclassification from accumulated other comprehensive income (AOCI) to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act ("TCJA"). The amount of that reclassification should include the effect of changes of tax rate on the deferred tax amount, any related valuation allowance and other income tax effects on the items in AOCI. In addition, the ASU requires that an entity state if an election to reclassify the tax effects to retained earnings is made, along with a description of other income tax effects that are reclassified from AOCI. This guidance is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, with early adoption permitted. The Company early adopted the ASU and reclassified $168 thousand from retained earnings to AOCI during the first quarter of 2018. In May 2018, the FASB issued an update to ASU No. 2018-05, "Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118," regarding the accounting implications of the recently issued TCJA. The update clarifies that in a company's financial statements that include the reporting period in which the TCJA was enacted, a company must first reflect the income tax effects of the TCJA in which the accounting under GAAP is complete. These amounts would not be provisional amounts. The Company would also report provisional amounts for those specific income tax effects for which the accounting under GAAP will be incomplete but for which a reasonable estimate can be determined. This accounting update is effective immediately. The Company believes its accounting for the income tax effects of the TCJA is complete. Technical corrections or other forthcoming guidance could change how we interpret provisions of the TCJA, which may impact our effective tax rate and could affect our deferred tax assets, tax positions and/or our tax liabilities. |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale Securities | The following table summarizes the amortized cost and fair value of the available-for-sale securities portfolio at December 31, 2018 and December 31, 2017 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss. (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2018 U.S. government sponsored entities & agencies $ 2,404 $ 4 $ (11 ) $ 2,397 State and political subdivision 75,093 657 (604 ) 75,146 Mortgage-backed securities: residential 10,114 4 (379 ) 9,739 Mortgage-backed securities: commercial 12,594 17 (229 ) 12,382 Collateralized mortgage obligations: residential 18,916 51 (296 ) 18,671 Collateralized mortgage obligations: commercial 32,390 98 (500 ) 31,988 U.S. Treasury 21,232 — (751 ) 20,481 SBA 15,856 — (168 ) 15,688 Asset backed securities 3,872 — (30 ) 3,842 Corporate bonds 14,006 18 (100 ) 13,924 Total available-for-sale $ 206,477 $ 849 $ (3,068 ) $ 204,258 December 31, 2017 State and political subdivision $ 52,951 $ 602 $ (329 ) $ 53,224 Mortgage-backed securities: residential 8,689 3 (261 ) 8,431 Mortgage-backed securities: commercial 9,879 12 (72 ) 9,819 Collateralized mortgage obligations: residential 19,304 125 (208 ) 19,221 Collateralized mortgage obligations: commercial 20,879 11 (333 ) 20,557 U.S. Treasury 24,283 — (710 ) 23,573 SBA 12,644 10 (38 ) 12,616 Corporate bonds 3,545 — (17 ) 3,528 Total available-for-sale $ 152,174 $ 763 $ (1,968 ) $ 150,969 |
Proceeds from Sales of Securities and Associated Gains and Losses | The proceeds from sales of securities and the associated gains and losses for the periods below were as follows: For the year ended December 31, (Dollars in thousands) 2018 2017 2016 Proceeds $ 3,625 $ 14,803 $ 93,427 Gross gains 2 217 1,048 Gross losses (73 ) (9 ) (122 ) |
Securities by Contractual Maturity | The amortized cost and fair value of securities are shown in the table below by contractual maturity. Actual timing may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Additionally, residential mortgage-backed securities and collateralized mortgage obligations receive monthly principal payments, which are not reflected below. December 31, 2018 (Dollars in thousands) Amortized Cost Fair Value Within one year $ 1,682 $ 1,671 One to five years 53,670 52,708 Five to ten years 38,951 38,677 Beyond ten years 112,174 111,202 Total $ 206,477 $ 204,258 |
Securities with Unrealized Losses | The following table summarizes securities with unrealized losses at December 31, 2018 and December 31, 2017 aggregated by security type and length of time in a continuous unrealized loss position: Less than 12 Months 12 Months or Longer Total (Dollars in thousands) Fair value Unrealized Losses Fair value Unrealized Losses Fair value Unrealized Losses December 31, 2018 Available-for-sale U.S. government sponsored entities & agencies $ 978 $ (11 ) $ — $ — $ 978 $ (11 ) State and political subdivision 5,121 (25 ) 27,667 (579 ) 32,788 (604 ) Mortgage-backed securities: residential 2,595 (4 ) 6,393 (375 ) 8,988 (379 ) Mortgage-backed securities: commercial 1,967 (8 ) 8,944 (221 ) 10,911 (229 ) Collateralized mortgage obligations: residential 3,814 (27 ) 8,958 (269 ) 12,772 (296 ) Collateralized mortgage obligations: commercial — — 17,939 (500 ) 17,939 (500 ) U.S. Treasury — — 20,481 (751 ) 20,481 (751 ) SBA 12,420 (91 ) 3,268 (77 ) 15,688 (168 ) Asset backed securities 3,842 (30 ) — — 3,842 (30 ) Corporate bonds 7,526 (28 ) 2,950 (72 ) 10,476 (100 ) Total available-for-sale $ 38,263 $ (224 ) $ 96,600 $ (2,844 ) $ 134,863 $ (3,068 ) December 31, 2017 Available-for-sale State and political subdivision $ 17,285 $ (127 ) $ 6,002 $ (202 ) $ 23,287 $ (329 ) Mortgage-backed securities: residential 1,966 (33 ) 6,226 (228 ) 8,192 (261 ) Mortgage-backed securities: commercial 5,874 (31 ) 1,867 (41 ) 7,741 (72 ) Collateralized mortgage obligations: residential 4,609 (40 ) 7,828 (168 ) 12,437 (208 ) Collateralized mortgage obligations: commercial 15,717 (294 ) 2,813 (39 ) 18,530 (333 ) U.S. Treasury 3,937 (27 ) 19,637 (683 ) 23,574 (710 ) SBA 8,516 (25 ) 367 (13 ) 8,883 (38 ) Corporate bonds 3,528 (17 ) — — 3,528 (17 ) Total available-for-sale $ 61,432 $ (594 ) $ 44,740 $ (1,374 ) $ 106,172 $ (1,968 ) |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Schedule of Recorded Investment in Loans | The following table presents the recorded investment in loans at December 31, 2018 and December 31, 2017 . The recorded investment in loans excludes accrued interest receivable. (Dollars in thousands) Originated Acquired Total December 31, 2018 Commercial real estate $ 500,809 $ 61,284 $ 562,093 Commercial and industrial 375,130 8,325 383,455 Residential real estate 165,015 15,003 180,018 Consumer 944 55 999 Total $ 1,041,898 $ 84,667 $ 1,126,565 December 31, 2017 Commercial real estate $ 431,872 $ 79,890 $ 511,762 Commercial and industrial 365,679 12,007 377,686 Residential real estate 122,551 21,888 144,439 Consumer 793 243 1,036 Total $ 920,895 $ 114,028 $ 1,034,923 |
Information as to Nonperforming Assets | Information as to nonperforming assets was as follows: (Dollars in thousands) December 31, 2018 December 31, 2017 Nonaccrual loans: Commercial real estate $ 5,927 $ 2,257 Commercial and industrial 9,605 9,024 Residential real estate 2,915 2,767 Total nonperforming loans 18,447 14,048 Other real estate owned — 652 Total nonperforming assets $ 18,447 $ 14,700 Loans 90 days or more past due and still accruing $ 243 $ 440 |
Summary of Loan Delinquency | Loan delinquency as of the dates presented below was as follows: (Dollars in thousands) Current 30 - 59 Days 60 - 89 Days 90+ Days Total December 31, 2018 Commercial real estate $ 559,523 $ 497 $ — $ 2,073 $ 562,093 Commercial and industrial 381,424 664 82 1,285 383,455 Residential real estate 174,831 2,499 1,314 1,374 180,018 Consumer 998 — 1 — 999 Total $ 1,116,776 $ 3,660 $ 1,397 $ 4,732 $ 1,126,565 December 31, 2017 Commercial real estate $ 507,250 $ 3,066 $ 1,412 $ 34 $ 511,762 Commercial and industrial 373,829 1,397 2,455 5 377,686 Residential real estate 138,613 3,808 1,258 760 144,439 Consumer 985 51 — — 1,036 Total $ 1,020,677 $ 8,322 $ 5,125 $ 799 $ 1,034,923 |
Information as to Impaired Loans, Excluding PCI Loans | Information as to impaired loans, excluding purchased credit impaired loans, was as follows: (Dollars in thousands) December 31, 2018 December 31, 2017 Nonaccrual loans $ 18,447 $ 14,048 Performing troubled debt restructurings: Commercial and industrial 568 961 Residential real estate 363 261 Total performing troubled debt restructurings 931 1,222 Total impaired loans, excluding purchase credit impaired loans $ 19,378 $ 15,270 The total balance of all PCI loans from these acquisitions was as follows: (Dollars in thousand) Unpaid Principal Balance Recorded Investment December 31, 2018 Commercial real estate $ 7,406 $ 4,344 Commercial and industrial 177 122 Residential real estate 4,974 3,409 Total PCI loans $ 12,557 $ 7,875 December 31, 2017 Commercial real estate $ 10,084 $ 5,771 Commercial and industrial 808 417 Residential real estate 4,068 3,558 Total PCI loans $ 14,960 $ 9,746 Information as to loans individually evaluated for impairment, including impaired PCI loans, is as follows: (Dollars in thousands) Recorded with no related allowance Recorded with related allowance Total recorded investment Contractual principal balance Related allowance December 31, 2018 Individually evaluated impaired loans: Commercial real estate $ 5,898 $ 3,991 $ 9,889 $ 13,076 $ 815 Commercial and industrial 5,892 4,059 9,951 10,411 526 Residential real estate 1,666 3,255 4,921 6,604 101 Total $ 13,456 $ 11,305 $ 24,761 $ 30,091 $ 1,442 December 31, 2017 Individually evaluated impaired loans: Commercial real estate $ 2,222 $ 5,339 $ 7,561 $ 13,536 $ 876 Commercial and industrial 5,238 5,059 10,297 11,677 1,549 Residential real estate 1,696 3,132 4,828 6,502 154 Total $ 9,156 $ 13,530 $ 22,686 $ 31,715 $ 2,579 (Dollars in thousands) Average Recorded Investment Interest Income Recognized Cash Basis Interest Recognized For the year ended December 31, 2018 Individually evaluated impaired loans: Commercial real estate $ 9,471 $ 1,622 $ 142 Commercial and industrial 7,673 91 112 Residential real estate 5,182 369 — Total $ 22,326 $ 2,082 $ 254 For the year ended December 31, 2017 Individually evaluated impaired loans: Commercial real estate $ 8,145 $ 1,710 $ — Commercial and industrial 17,738 238 — Residential real estate 5,361 303 — Total $ 31,244 $ 2,251 $ — For the year ended December 31, 2016 Individually evaluated impaired loans: Commercial real estate $ 689 $ 1,719 $ 1 Commercial and industrial 8,894 59 82 Residential real estate 5,379 526 11 Consumer 18 — — Total $ 14,980 $ 2,304 $ 94 |
Summary of Recorded Investment of Loans Modified in TDRs | The following tables present the number of loans modified in TDRs during the twelve months ending December 31, 2018, 2017 and 2016 for which there was a subsequent payment default, including the recorded investment as of each period end. A payment on a TDR is considered to be in default once it is greater than 30 days past due. For the year ended December 31, 2018 (Dollars in thousands) Total number of Total recorded Provision for loan losses following a Commercial real estate 3 $ 2,073 $ — Commercial and industrial 1 904 — Total 4 $ 2,977 $ — For the year ended December 31, 2017 (Dollars in thousands) Total number of Total recorded Provision for loan losses following a Commercial real estate 1 $ 1,229 $ — Commercial and industrial 5 — 497 Residential real estate 1 292 — Total 7 $ 1,521 $ 497 For the year ended December 31, 2016 (Dollars in thousands) Total number of loans Total recorded investment Provision for loan losses following a subsequent default Commercial real estate 2 $ 289 $ — Total 2 $ 289 $ — The following table presents the recorded investment of loans modified as TDRs during the years ended December 31, 2018 , 2017 and 2016, by type of concession granted. In cases where more than one type of concession was granted, the loans were categorized based on the most significant concession. Concession type Financial effects of (Dollars in thousands) Principal Interest Forbearance Total Total Net Provision For the year ended December 31, 2018 Commercial real estate $ 2,073 $ — $ — 4 $ 2,073 $ 101 $ — Commercial and industrial 1,031 106 — 4 1,137 — 14 Residential real estate 113 — — 2 113 — 5 Total $ 3,217 $ 106 $ — 10 $ 3,323 $ 101 $ 19 For the year ended December 31, 2017 Commercial real estate $ 297 $ — $ 1,229 2 $ 1,526 $ — $ — Residential real estate 784 357 — 3 1,141 — 15 Total $ 1,081 $ 357 $ 1,229 5 $ 2,667 $ — $ 15 For the year ended December 31, 2016 Commercial real estate $ 289 $ — $ — 2 $ 289 $ — $ — Commercial and industrial — — 5,268 3 5,268 — 852 Residential real estate — — 414 3 414 14 — Total $ 289 $ — $ 5,682 8 $ 5,971 $ 14 $ 852 |
Risk Category of Loans by Class of Loans | Based on the most recent analysis performed, the risk category of loans by class of loans was as follows: (Dollars in thousands) Pass Special Mention Substandard Doubtful Total December 31, 2018 Commercial real estate $ 545,843 $ 10,240 $ 5,966 $ 44 $ 562,093 Commercial and industrial 368,189 2,841 12,425 — 383,455 Total $ 914,032 $ 13,081 $ 18,391 $ 44 $ 945,548 December 31, 2017 Commercial real estate $ 492,731 $ 10,664 $ 8,323 $ 44 $ 511,762 Commercial and industrial 361,740 5,945 9,963 38 377,686 Total $ 854,471 $ 16,609 $ 18,286 $ 82 $ 889,448 The following presents residential real estate and consumer loans by credit quality: (Dollars in thousands) Performing Nonperforming Total December 31, 2018 Residential real estate $ 177,103 $ 2,915 $ 180,018 Consumer 999 — 999 Total $ 178,102 $ 2,915 $ 181,017 December 31, 2017 Residential real estate $ 141,672 $ 2,767 $ 144,439 Consumer 1,036 — 1,036 Total $ 142,708 $ 2,767 $ 145,475 |
Total Balance of PCI Loans and Activity in Accretable Yield | The following table reflects the activity in the accretable yield of PCI loans from past acquisitions, which includes total expected cash flows, including interest, in excess of the recorded investment. For the year ended December 31, (Dollars in thousands) 2018 2017 2016 Balance at beginning of period $ 14,452 $ 19,893 $ 27,852 Additions due to acquisitions — — 741 Accretion of income (3,794 ) (5,340 ) (8,412 ) Adjustments to accretable yield 304 121 250 Other activity, net (15 ) (222 ) (538 ) Balance at end of period $ 10,947 $ 14,452 $ 19,893 |
Allowance (Tables)
Allowance (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Information as to Impaired Loans, including PCI Loans | Information as to impaired loans, excluding purchased credit impaired loans, was as follows: (Dollars in thousands) December 31, 2018 December 31, 2017 Nonaccrual loans $ 18,447 $ 14,048 Performing troubled debt restructurings: Commercial and industrial 568 961 Residential real estate 363 261 Total performing troubled debt restructurings 931 1,222 Total impaired loans, excluding purchase credit impaired loans $ 19,378 $ 15,270 The total balance of all PCI loans from these acquisitions was as follows: (Dollars in thousand) Unpaid Principal Balance Recorded Investment December 31, 2018 Commercial real estate $ 7,406 $ 4,344 Commercial and industrial 177 122 Residential real estate 4,974 3,409 Total PCI loans $ 12,557 $ 7,875 December 31, 2017 Commercial real estate $ 10,084 $ 5,771 Commercial and industrial 808 417 Residential real estate 4,068 3,558 Total PCI loans $ 14,960 $ 9,746 Information as to loans individually evaluated for impairment, including impaired PCI loans, is as follows: (Dollars in thousands) Recorded with no related allowance Recorded with related allowance Total recorded investment Contractual principal balance Related allowance December 31, 2018 Individually evaluated impaired loans: Commercial real estate $ 5,898 $ 3,991 $ 9,889 $ 13,076 $ 815 Commercial and industrial 5,892 4,059 9,951 10,411 526 Residential real estate 1,666 3,255 4,921 6,604 101 Total $ 13,456 $ 11,305 $ 24,761 $ 30,091 $ 1,442 December 31, 2017 Individually evaluated impaired loans: Commercial real estate $ 2,222 $ 5,339 $ 7,561 $ 13,536 $ 876 Commercial and industrial 5,238 5,059 10,297 11,677 1,549 Residential real estate 1,696 3,132 4,828 6,502 154 Total $ 9,156 $ 13,530 $ 22,686 $ 31,715 $ 2,579 (Dollars in thousands) Average Recorded Investment Interest Income Recognized Cash Basis Interest Recognized For the year ended December 31, 2018 Individually evaluated impaired loans: Commercial real estate $ 9,471 $ 1,622 $ 142 Commercial and industrial 7,673 91 112 Residential real estate 5,182 369 — Total $ 22,326 $ 2,082 $ 254 For the year ended December 31, 2017 Individually evaluated impaired loans: Commercial real estate $ 8,145 $ 1,710 $ — Commercial and industrial 17,738 238 — Residential real estate 5,361 303 — Total $ 31,244 $ 2,251 $ — For the year ended December 31, 2016 Individually evaluated impaired loans: Commercial real estate $ 689 $ 1,719 $ 1 Commercial and industrial 8,894 59 82 Residential real estate 5,379 526 11 Consumer 18 — — Total $ 14,980 $ 2,304 $ 94 |
Activity in the Allowance for Loan Losses and Allocation of the Allowance for Loans | Activity in the allowance for loan losses and the allocation of the allowance for loans was as follows: (Dollars in thousands) Commercial Real Estate Commercial and Industrial Residential Real Estate Consumer Total For the year ended December 31, 2018 Allowance for loan losses: Beginning balance $ 4,852 $ 5,903 $ 950 $ 8 $ 11,713 Provision (benefit) for loan losses 464 (269 ) 191 26 412 Gross chargeoffs (112 ) (1,283 ) (47 ) (35 ) (1,477 ) Recoveries 23 823 70 2 918 Net (chargeoffs) recoveries (89 ) (460 ) 23 (33 ) (559 ) Ending allowance for loan losses $ 5,227 $ 5,174 $ 1,164 $ 1 $ 11,566 For the year ended December 31, 2017 Allowance for loan losses: Beginning balance $ 4,124 $ 5,932 $ 1,030 $ 3 $ 11,089 Provision (benefit) for loan losses 1,071 478 (136 ) 3 1,416 Gross chargeoffs (360 ) (697 ) (85 ) — (1,142 ) Recoveries 17 190 141 2 350 Net (chargeoffs) recoveries (343 ) (507 ) 56 2 (792 ) Ending allowance for loan losses $ 4,852 $ 5,903 $ 950 $ 8 $ 11,713 For the year ended December 31, 2016 Allowance for loan losses: Beginning balance $ 3,299 $ 3,256 $ 1,307 $ 28 $ 7,890 Provision (benefit) for loan losses 772 3,447 (267 ) (27 ) 3,925 Gross chargeoffs — (943 ) (211 ) — (1,154 ) Recoveries 53 172 201 2 428 Net (chargeoffs) recoveries 53 (771 ) (10 ) 2 (726 ) Ending allowance for loan losses $ 4,124 $ 5,932 $ 1,030 $ 3 $ 11,089 (Dollars in thousands) Commercial Real Estate Commercial and Industrial Residential Real Estate Consumer Total December 31, 2018 Allowance for loan losses: Individually evaluated for impairment $ — $ 504 $ 18 $ — $ 522 Collectively evaluated for impairment 4,412 4,648 1,063 1 10,124 Acquired with deteriorated credit quality 815 22 83 — 920 Ending Allowance for loan losses $ 5,227 $ 5,174 $ 1,164 $ 1 $ 11,566 Balance of loans: Individually evaluated for impairment $ 5,898 $ 9,829 $ 1,854 $ — $ 17,581 Collectively evaluated for impairment 551,851 373,504 174,755 999 1,101,109 Acquired with deteriorated credit quality 4,344 122 3,409 — 7,875 Total loans $ 562,093 $ 383,455 $ 180,018 $ 999 $ 1,126,565 December 31, 2017 Allowance for loan losses: Individually evaluated for impairment $ — $ 1,480 $ 18 $ — $ 1,498 Collectively evaluated for impairment 3,976 4,354 796 8 9,134 Acquired with deteriorated credit quality 876 69 136 — 1,081 Ending Allowance for loan losses $ 4,852 $ 5,903 $ 950 $ 8 $ 11,713 Balance of loans: Individually evaluated for impairment $ 2,222 $ 9,976 $ 1,778 $ — $ 13,976 Collectively evaluated for impairment 503,769 367,293 139,103 1,036 1,011,201 Acquired with deteriorated credit quality 5,771 417 3,558 — 9,746 Total loans $ 511,762 $ 377,686 $ 144,439 $ 1,036 $ 1,034,923 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and Equipment | Premises and equipment were as follows at December 31, 2018 and December 31, 2017 : (Dollars in thousands) December 31, 2018 December 31, 2017 Land $ 2,197 $ 2,197 Building 9,746 9,132 Leasehold improvements 1,708 1,655 Furniture, fixtures and equipment 6,024 5,614 Total premises and equipment $ 19,675 $ 18,598 Less: Accumulated depreciation 6,433 5,163 Net premises and equipment $ 13,242 $ 13,435 |
Rent Commitments under Non-cancelable Operating Leases | Rent commitments under non-cancelable operating leases (including renewal options that the Company will likely exercise) were as follows: (Dollars in thousands) As of December 31, 2018 2019 $ 1,160 2020 1,013 2021 835 2022 842 2023 787 Thereafter 3,235 Total lease commitments $ 7,872 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Core Deposit Intangibles | The table below presents the Company's net carrying amount of CDIs: (Dollars in thousands) December 31, 2018 December 31, 2017 Gross carrying amount $ 2,045 $ 2,045 Accumulated amortization (1,598 ) (1,378 ) Net Intangible $ 447 $ 667 |
Estimated Amortization Expense | Estimated amortization expense for each of the next five years: (Dollars in thousands) 2019 $ 116 2020 102 2021 68 2022 53 2023 39 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Scheduled Maturities of Total Time Deposits | As of December 31, 2018 , the scheduled maturities of total time deposits were as follows: (Dollars in thousands) December 31, 2018 Due in 2019 $ 408,408 Due in 2020 66,609 Due in 2021 7,446 Due in 2022 2,063 Due in 2023 346 Thereafter — Total $ 484,872 |
Borrowings and Subordinated D_2
Borrowings and Subordinated Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Components of Long-term Debt and Short-term Borrowings | The following table presents the components of our short-term borrowings and long-term debt. December 31, 2018 December 31, 2017 (Dollars in thousands) Amount Weighted Amount Weighted Short-term borrowings: Securities sold under agreements to repurchase $ 609 0.30 % $ 1,319 0.30 % FHLB line of credit 2,520 2.87 — — Federal funds purchased 5,000 2.50 — — FHLB Advances 90,000 2.54 35,000 1.25 Total short-term borrowings 98,129 2.53 36,319 1.22 Long-term debt: Secured borrowing due in 2022 1,445 1.00 1,514 1.00 FHLB advances due in 2022 — — 10,000 1.75 Subordinated notes due in 2025 (2) 14,891 6.38 14,844 6.38 Total long-term debt 16,336 5.90 26,358 4.31 Total short-term and long-term borrowings $ 114,465 3.01 % $ 62,677 2.52 % _______________________________________________________________________________ (1) Weighted average rate presented is the contractual rate which excludes premiums and discounts related to purchase accounting. (2) The December 31, 2018 balance includes subordinated notes of $15.0 million and debt issuance costs of $109 thousand . The December 31, 2017 balance includes subordinated notes of $15.0 million and debt issuance costs of $156 thousand . |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Current and Deferred Components of the Provision for Income Taxes | The current and deferred components of the provision for income taxes were as follows: For the years ended December 31, (Dollars in thousands) 2018 2017 2016 Current expense $ 2,974 $ 5,721 $ 6,163 Remeasurement due to tax reform — 1,293 — Deferred expense (benefit) 29 (291 ) (63 ) Total $ 3,003 $ 6,723 $ 6,100 |
Reconciliation of Expected Income Tax Expense | A reconciliation of expected income tax expense using the federal corporate tax rate of 21% , 35% , and 35% as of December 31, 2018 , 2017 and 2016, respectively, and actual income tax expense is as follows : For the year ended December 31, (Dollars in thousands) 2018 2017 2016 Income tax expense based on federal corporate tax rate $ 3,651 $ 5,797 $ 6,001 Changes resulting from: Tax-exempt income (406 ) (446 ) (211 ) Remeasurement due to tax reform — 1,293 — Captive Insurance Benefit (198 ) (143 ) — Other, net (44 ) 222 310 Income tax expense $ 3,003 $ 6,723 $ 6,100 |
Tax Effects of Temporary Differences that Resulted in Significant Components of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that resulted in the significant components of deferred tax assets and liabilities at December 31, 2018 and 2017 are as follows: For the years ended December 31, (Dollars in thousands) 2018 2017 Deferred tax assets: Allowance for loan losses $ 2,429 $ 2,460 Start-up/pre-opening expenses 76 100 Stock options 108 100 Deferred loan fees 213 195 Unrealized loss—available for sale securities 466 253 Nonaccrued Interest 156 177 Accrued expenses 91 95 Other 232 90 Total gross deferred tax assets 3,771 3,470 Deferred tax liabilities: Depreciation (559 ) (554 ) Prepaid expenses (304 ) (199 ) Business combination adjustments (521 ) (532 ) Partnership Investments (306 ) (288 ) Other (12 ) (12 ) Total gross deferred tax liabilities (1,702 ) (1,585 ) Net deferred tax assets $ 2,069 $ 1,885 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Weighted-Average Assumptions Used in Determining the Fair Value of Stock Options Granted | The fair value of the stock options granted was determined using the following weighted-average assumptions as of grant date: December 31, 2018 December 31, 2017 December 31, 2016 Risk Free Interest Rate 2.83% N/A 1.51% Expected Term (years) 7.0 N/A 7.0 Expected Volatility 0.04 N/A 0.04 Weighted average fair value of options granted $4.46 N/A $3.05 |
Summary of Employee Stock Option Activity | The summary of our stock option activity for the years ended December 31, 2018 and 2017 is as follows: 2018 2017 Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Shares Weighted Average Weighted Average Remaining Contractual Options outstanding, beginning of year 484,147 $ 13.96 4.7 555,153 $ 13.52 5.4 Granted 30,000 24.80 — — Exercised (127,494 ) 10.04 (57,506 ) 10.53 Forfeited (9,885 ) 10.00 (13,500 ) 10.22 Options outstanding, end of year 376,768 16.26 5.8 484,147 13.96 4.7 Options exercisable 317,263 15.03 5.4 392,134 12.62 3.9 |
Summary of Changes in Nonvested Shares | A summary of changes in the Company's nonvested shares for the year ended December 31, 2018 is as follows: Nonvested Shares Shares Weighted Average Grant-Date Fair Value Nonvested at 1/1/2018 30,150 $ 22.03 Granted 37,021 25.53 Vested (13,401 ) 23.20 Nonvested at 12/31/2018 53,770 $ 24.14 |
Off-Balance Sheet Activities (T
Off-Balance Sheet Activities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Exposure to Off-balance Sheet Risk | A summary of the contractual amounts of the Company's exposure to off-balance sheet risk is as follows: December 31, 2018 December 31, 2017 (Dollars in thousands) Fixed Variable Fixed Variable Commitments to make loans $ 8,608 $ 10,900 $ 5,041 $ 8,837 Unused lines of credit 18,672 229,490 12,407 189,787 Unused standby letters of credit 3,861 232 3,584 1,411 |
Regulatory Capital Matters (Tab
Regulatory Capital Matters (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Regulated Operations [Abstract] | |
Schedule of actual and required capital amounts and ratios | Actual and required capital amounts and ratios are presented below: Actual For Capital Adequacy Purposes For Capital Adequacy Purposes + Capital Conservation Buffer(1) Well Capitalized Under Prompt Corrective Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2018 Common equity tier 1 to risk-weighted assets: Consolidated $ 144,008 11.82 % $ 54,803 4.50 % $ 77,699 6.38 % Bank 147,495 12.12 % 54,780 4.50 % 77,666 6.38 % $ 79,126 6.50 % Tier 1 capital to risk-weighted assets: Consolidated $ 144,008 11.82 % $ 73,071 6.00 % $ 95,967 7.88 % Bank 147,495 12.12 % 73,040 6.00 % 95,926 7.88 % $ 97,386 8.00 % Total capital to risk-weighted assets: Consolidated $ 170,503 14.00 % $ 97,428 8.00 % $ 120,324 9.88 % Bank 159,100 13.07 % 97,386 8.00 % 120,272 9.88 % $ 121,733 10.00 % Tier 1 capital to average assets (leverage ratio): Consolidated $ 144,008 10.21 % $ 56,411 4.00 % $ 56,411 4.00 % Bank 147,495 10.48 % 56,309 4.00 % 56,309 4.00 % $ 70,386 5.00 % December 31, 2017 Common equity tier 1 to risk-weighted assets: Consolidated $ 98,912 9.10 % $ 48,904 4.50 % $ 62,488 5.75 % Bank 111,781 10.29 % 48,891 4.50 % 62,472 5.75 % $ 70,620 6.50 % Tier 1 capital to risk-weighted assets: Consolidated $ 98,912 9.10 % $ 65,205 6.00 % $ 78,790 7.25 % Bank 111,781 10.29 % 65,188 6.00 % 78,768 7.25 % $ 86,917 8.00 % Total capital to risk-weighted assets: Consolidated $ 125,472 11.55 % $ 86,940 8.00 % $ 100,525 9.25 % Bank 123,496 11.37 % 86,917 8.00 % 100,498 9.25 % $ 108,646 10.00 % Tier 1 capital to average assets (leverage ratio): Consolidated $ 98,912 7.92 % $ 49,978 4.00 % $ 49,978 4.00 % Bank 111,781 8.96 % 49,893 4.00 % 49,893 4.00 % $ 62,366 5.00 % _______________________________________________________________________________ (1) Reflects the capital conservation buffer of 1.875% and 1.25% applicable during 2018 and 2017, respectively. |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below: (Dollars in thousands) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2018 Securities available for sale: U.S. government sponsored entities and agencies $ 2,397 $ — $ 2,397 $ — State and political subdivision 75,146 — 75,146 — Mortgage-backed securities: residential 9,739 — 9,739 — Mortgage-backed securities: commercial 12,382 — 12,382 — Collateralized mortgage obligations: residential 18,671 — 18,671 — Collateralized mortgage obligations: commercial 31,988 — 31,988 — U.S. Treasury 20,481 — 20,481 — SBA 15,688 — 15,688 — Asset backed securities 3,842 — 3,842 — Corporate bonds 13,924 — 13,924 — Total securities available for sale 204,258 — 204,258 — Loans held for sale 5,595 — 5,595 — Loans measured at fair value: Residential real estate 4,571 — — 4,571 Derivative assets: Customer-initiated derivatives 1,126 — 1,126 — Forward contracts related to mortgage loans to be delivered for sale 22 — 22 — Interest rate lock commitments 198 — 198 — Total assets at fair value $ 215,770 $ — $ 211,199 $ 4,571 Derivative liabilities: Customer-initiated derivatives 1,126 — 1,126 — Forward contracts related to mortgage loans to be delivered for sale 43 — 43 — Total liabilities at fair value $ 1,169 $ — $ 1,169 $ — December 31, 2017 Securities available for sale: State and political subdivision $ 53,224 $ — $ 53,224 $ — Mortgage-backed securities: residential 8,431 — 8,431 — Mortgage-backed securities: commercial 9,819 — 9,819 — Collateralized mortgage obligations: residential 19,221 — 19,221 — Collateralized mortgage obligations: commercial 20,557 — 20,557 — U.S. Treasury 23,573 — 23,573 — SBA 12,616 — 12,616 — Corporate bonds 3,528 — 3,528 — Total securities available for sale $ 150,969 $ — $ 150,969 $ — Loans held for sale 4,548 — 4,548 — Loans measured at fair value: Residential real estate 4,291 — — 4,291 Total assets at fair value $ 159,808 $ — $ 155,517 $ 4,291 |
Level 3 Rollforward | The following table summarizes the changes in Level 3 assets measured at fair value on a recurring basis. (Dollars in thousands) Loans held for investment For the year ended December 31, 2018 Beginning balance $ 4,291 Transfers from loans held for sale 544 Gains (losses): Recorded in "Mortgage banking activities" (108 ) Repayments (156 ) Ending balance $ 4,571 For the year ended December 31, 2017 Beginning balance $ 3,287 Transfers from loans held for sale 1,587 Gains (losses): Recorded in "Mortgage banking activities" 77 Repayments (660 ) Ending balance $ 4,291 |
Information for Loans Held for Sale Carried at Fair Value | As of December 31, 2018 and December 31, 2017 , the aggregate fair value, contractual balance (including accrued interest), and gain or loss for loans held for sale carried at fair value was as follows: (Dollars in thousands) December 31, 2018 December 31, 2017 Aggregate fair value $ 5,595 $ 4,548 Contractual balance 5,512 4,466 Unrealized gain 83 82 The total amount of gains (losses) from changes in fair value of loans held for sale included in "Mortgage banking activities" for the years ended December 31, 2018, 2017 and 2016 were as follows: For the year ended December 31, (Dollars in thousands) 2018 2017 2016 Change in fair value $ 1 $ (172 ) $ 167 |
Assets Measured at Fair Value on a Non-recurring Basis | Assets measured at fair value on a non-recurring basis are summarized below: (Dollars in thousands) Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs December 31, 2018 Impaired loans: Commercial and industrial $ 3,337 $ — $ — $ 3,337 Total $ 3,337 $ — $ — $ 3,337 December 31, 2017 Other real estate owned $ 652 $ — $ — $ 652 Other assets (1) 1,654 — — 1,654 Total $ 2,306 $ — $ — $ 2,306 (1) Impaired other assets represent building and furniture held-for-sale, which had a writedown of $140 thousand during the year ended December 31, 2017 and a writedown of $10 thousand during the year ended December 31, 2018 . The building held for sale was sold prior to December 31, 2018. |
Inputs for Assets Measured at Fair Value on a Nonrecurring Basis | The table below presents quantitative information about the significant unobservable inputs for assets measured at fair value on a nonrecurring basis at December 31, 2018 and December 31, 2017 : (Dollars in thousands) Fair value at December 31, 2018 Valuation Technique(s) Significant Unobservable Input(s) Discount % Impaired loans $ 3,337 Discounted appraisals Collateral discounts 17-50% (Dollars in thousands) Fair value at Valuation Significant Discount % Range Other real estate owned $ 652 Sales comparison approach per appraisal Discount for type of collateral and age of appraisal 0-5% Other assets (building held for sale) 1,654 Sales comparison approach per appraisal Discount for type of collateral and age of appraisal 0-10% |
Carrying Amounts and Estimated Fair Values of Financial Instruments | The carrying amounts and estimated fair values of financial instruments, excluding those previously presented unless otherwise noted, at December 31, 2018 and December 31, 2017 were as follows: (Dollars in thousands) Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2018 Financial assets: Cash and cash equivalents $ 33,296 $ 27,072 $ 6,224 $ — Federal Home Loan Bank stock 8,325 NA NA NA Net loans 1,114,999 — — 1,113,648 Accrued interest receivable 4,207 — 1,210 2,997 Financial liabilities: Deposits 1,134,635 — 1,137,575 — Borrowings 99,574 — 100,602 — Subordinated notes 14,891 — 15,450 — Accrued interest payable 1,674 — 1,674 — December 31, 2017 Financial assets: Cash and cash equivalents $ 63,661 $ 17,712 $ 45,949 $ — Federal Home Loan Bank stock 8,303 NA NA NA Net loans 1,023,210 — — 1,025,319 Accrued interest receivable 3,730 — 807 2,923 Financial liabilities: Deposits 1,120,382 — 1,122,473 — Borrowings 47,833 — 47,473 — Subordinated notes 14,844 — 14,993 — Accrued interest payable 908 — 908 — |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value Hedges Included in the Consolidated Balance Sheets | The following table presents the notional amount and fair value of the Company's derivative instruments held or issued in connection with customer initiated and mortgage banking activities: December 31, 2018 (Dollars in thousands) Notional Amount Fair Value Included in other assets Customer-initiated and mortgage banking derivatives: Customer-initiated derivatives $ 35,733 $ 1,126 Forward contracts related to mortgage loans to be delivered for sale 5,241 22 Interest rate lock commitments 18,375 198 Total derivatives included in other assets $ 59,349 $ 1,346 Included in other liabilities: Customer-initiated and mortgage banking derivatives: Customer-initiated derivatives $ 35,733 $ 1,126 Forward contracts related to mortgage loans to be delivered for sale 11,195 43 Total derivatives included in other liabilities $ 46,928 $ 1,169 |
Gains (Losses) Related to Derivative Instruments | The following table presents the gains (losses) related to derivative instruments reflecting the changes in fair value: For the year ended December 31, (Dollars in thousands) Location of Gain (Loss) 2018 2017 2016 Forward contracts related to mortgage loans to be delivered for sale Mortgage Banking Activities $ (69 ) $ (106 ) $ 99 Interest rate lock commitments Mortgage Banking Activities 142 (28 ) (23 ) Total gain (loss) recognized in income $ 73 $ (134 ) $ 76 |
Offsetting Assets | The table below presents information about the Company's financial instruments that are eligible for offset. Gross amounts not offset in the statements of financial position (Dollars in thousands) Gross amounts recognized Gross amounts offset in the statements of financial condition Net amounts presented in the statements of financial condition Financial instruments Collateral (received)/posted Net amount December 31, 2018 Offsetting derivative assets: Customer initiated derivatives $ 1,126 — $ 1,126 — — $ 1,126 Offsetting derivative liabilities: Customer initiated derivatives $ 1,126 — $ 1,126 — $ 1,020 $ 106 |
Offsetting Liabilities | The table below presents information about the Company's financial instruments that are eligible for offset. Gross amounts not offset in the statements of financial position (Dollars in thousands) Gross amounts recognized Gross amounts offset in the statements of financial condition Net amounts presented in the statements of financial condition Financial instruments Collateral (received)/posted Net amount December 31, 2018 Offsetting derivative assets: Customer initiated derivatives $ 1,126 — $ 1,126 — — $ 1,126 Offsetting derivative liabilities: Customer initiated derivatives $ 1,126 — $ 1,126 — $ 1,020 $ 106 |
Parent Company Financial Stat_2
Parent Company Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of condensed balance sheet | Balance Sheets—Parent Company (Dollars in thousands) December 31, 2018 December 31, 2017 Assets Cash and cash equivalents $ 9,690 $ 1,158 Investment in banking subsidiary 155,248 120,829 Investment in captive insurance subsidiary 1,622 663 Income tax benefit 393 339 Other assets 21 30 Total assets $ 166,974 $ 123,019 Liabilities Subordinated notes $ 14,891 $ 14,844 Accrued expenses and other liabilities 323 215 Total liabilities 15,214 15,059 Shareholders' equity 151,760 107,960 Total liabilities and shareholders' equity $ 166,974 $ 123,019 |
Schedule of condensed income statement and comprehensive income | Statements of Income and Comprehensive Income—Parent Company For the year ended December 31, (Dollars in thousands) 2018 2017 2016 Income Dividend income from banking subsidiary $ — $ — $ 14,000 Total income — — 14,000 Expenses Interest on subordinated notes $ 1,015 $ 1,015 $ 1,015 Other expenses 715 1,222 352 Total expenses 1,730 2,237 1,367 (Loss) income before income taxes and equity in undistributed net earnings of subsidiaries (1,730 ) (2,237 ) 12,633 Income tax benefit 425 686 478 Equity in undistributed earnings of subsidiaries 15,691 11,392 (2,065 ) Net income $ 14,386 $ 9,841 $ 11,046 Other comprehensive income (loss) (801 ) 343 (775 ) Total comprehensive income, net of tax $ 13,585 $ 10,184 $ 10,271 |
Schedule of condensed statements of cash flows | Statements of Cash Flows—Parent Company For the year ended December 31, (Dollars in thousands) 2018 2017 2016 Cash flows from operating activities Net income $ 14,386 $ 9,841 $ 11,046 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of subsidiaries (15,691 ) (11,392 ) 2,065 Stock based compensation expense 314 329 139 (Increase) decrease in other assets, net (45 ) 1,271 (480 ) Increase (decrease) in other liabilities, net (79 ) 215 (5 ) Net cash provided by (used in) operating activities (1,115 ) 264 12,765 Cash flows from investing activities Cash used in acquisitions — — (16,518 ) Capital contributions to captive subsidiary — (250 ) — Capital infusion to subsidiaries (20,000 ) — — Net cash used in investing activities (20,000 ) (250 ) (16,518 ) Cash flows from financing activities Net proceeds from issuance of common stock related to initial public offering 29,030 — — Common stock dividend paid (662 ) — — Proceeds from exercised stock options 1,279 605 300 Net cash provided by financing activities 29,647 605 300 Net increase (decrease) in cash and cash equivalents 8,532 619 (3,453 ) Beginning cash and cash equivalents 1,158 539 3,992 Ending cash and cash equivalents $ 9,690 $ 1,158 $ 539 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | The calculation of basic and diluted earnings per share for each period noted below was as follows: For the year ended December 31, (Dollars in thousands, except per share data) 2018 2017 2016 Basic: Net Income attributable to common shareholders $ 14,386 $ 9,841 $ 11,046 Weighted average common shares outstanding 7,376,507 6,388,328 6,340,814 Basic earnings per share $ 1.95 $ 1.54 $ 1.74 Diluted: Net Income attributable to common shareholders $ 14,386 $ 9,841 $ 11,046 Weighted average common shares outstanding 7,376,507 6,388,328 6,340,814 Add: Dilutive effects of assumed exercises of stock options 147,411 221,668 208,608 Weighted average common and dilutive potential common shares outstanding 7,523,918 6,609,996 6,549,422 Diluted earnings per common share $ 1.91 $ 1.49 $ 1.69 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Financial Data | The following tables present the unaudited quarterly financial data for the years ended December 31, 2018 and 2017: For the year ended December 31, 2018 (In thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Interest income $ 14,774 $ 15,380 $ 16,629 $ 17,041 Interest expense 2,647 2,965 3,560 4,228 Net interest income 12,127 12,415 13,069 12,813 Provision (benefit) for loan losses 554 (710 ) 619 (51 ) Net interest income after provision (benefit) for loan losses 11,573 13,125 12,450 12,864 Noninterest income 1,372 1,452 1,924 2,307 Noninterest expense 9,135 9,705 10,454 10,384 Income before income taxes 3,810 4,872 3,920 4,787 Income tax provision 642 860 665 836 Net income $ 3,168 $ 4,012 $ 3,255 $ 3,951 Earnings per common share: Basic $ 0.48 $ 0.54 $ 0.42 $ 0.51 Diluted 0.47 0.53 0.41 0.50 Cash dividends declared per common share 0.03 0.03 0.03 0.03 For the year ended December 31, 2017 (In thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Interest income $ 13,447 $ 14,034 $ 13,752 $ 14,374 Interest expense 1,703 1,928 2,074 2,373 Net interest income 11,744 12,106 11,678 12,001 Provision for loan losses 198 68 194 956 Net interest income after provision for loan losses 11,546 12,038 11,484 11,045 Noninterest income 1,380 1,784 1,941 1,397 Noninterest expense 8,677 8,851 9,331 9,192 Income before income taxes 4,249 4,971 4,094 3,250 Income tax provision 1,497 1,650 1,259 2,317 Net income $ 2,752 $ 3,321 $ 2,835 $ 933 Earnings per common share: Basic $ 0.43 $ 0.52 $ 0.44 $ 0.15 Diluted 0.42 0.50 0.43 0.14 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Additional Information) (Details) - USD ($) | Apr. 24, 2018 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Subsidiary, Sale of Stock [Line Items] | |||||
Fees and Commissions, Mortgage Banking and Servicing | $ 117,000 | $ 145,000 | $ 175,000 | ||
Retained Earnings | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Reclassifications of tax effects from retained earnings to AOCI | $ (168,000) | (168,000) | |||
Accumulated Other Comprehensive Loss | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Reclassifications of tax effects from retained earnings to AOCI | $ 168,000 | $ 168,000 | |||
IPO | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Shares of common stock sold (in shares) | 1,150,765 | ||||
Proceeds from sale of stock | $ 32,200,000 | ||||
Underwriting discounts | 2,100,000 | ||||
Offering expenses paid to third parties | 1,100,000 | ||||
Proceeds from the initial public offering | $ 29,000,000 | ||||
Over - Allotment Option | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Shares of common stock sold (in shares) | 180,000 | ||||
IPO - Shares From Existing Shareholders | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Shares of common stock sold (in shares) | 229,235 | ||||
Proceeds from sale of stock | $ 6,400,000 | ||||
Proceeds from the initial public offering | $ 0 |
Securities (Available-for-sale
Securities (Available-for-sale Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 206,477 | $ 152,174 |
Gross Unrealized Gains | 849 | 763 |
Gross Unrealized Losses | (3,068) | (1,968) |
Fair Value | 204,258 | 150,969 |
U.S. government sponsored entities & agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,404 | |
Gross Unrealized Gains | 4 | |
Gross Unrealized Losses | (11) | |
Fair Value | 2,397 | |
State and political subdivision | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 75,093 | 52,951 |
Gross Unrealized Gains | 657 | 602 |
Gross Unrealized Losses | (604) | (329) |
Fair Value | 75,146 | 53,224 |
Mortgage-backed securities: residential | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 10,114 | 8,689 |
Gross Unrealized Gains | 4 | 3 |
Gross Unrealized Losses | (379) | (261) |
Fair Value | 9,739 | 8,431 |
Mortgage-backed securities: commercial | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 12,594 | 9,879 |
Gross Unrealized Gains | 17 | 12 |
Gross Unrealized Losses | (229) | (72) |
Fair Value | 12,382 | 9,819 |
Collateralized mortgage obligations: residential | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 18,916 | 19,304 |
Gross Unrealized Gains | 51 | 125 |
Gross Unrealized Losses | (296) | (208) |
Fair Value | 18,671 | 19,221 |
Collateralized mortgage obligations: commercial | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 32,390 | 20,879 |
Gross Unrealized Gains | 98 | 11 |
Gross Unrealized Losses | (500) | (333) |
Fair Value | 31,988 | 20,557 |
U.S. Treasury | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 21,232 | 24,283 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (751) | (710) |
Fair Value | 20,481 | 23,573 |
SBA | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 15,856 | 12,644 |
Gross Unrealized Gains | 0 | 10 |
Gross Unrealized Losses | (168) | (38) |
Fair Value | 15,688 | 12,616 |
Asset backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,872 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (30) | |
Fair Value | 3,842 | |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 14,006 | 3,545 |
Gross Unrealized Gains | 18 | 0 |
Gross Unrealized Losses | (100) | (17) |
Fair Value | $ 13,924 | $ 3,528 |
Securities (Proceeds from Sales
Securities (Proceeds from Sales of Securities and Gains and Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds | $ 3,625 | $ 14,803 | $ 93,427 |
Gross gains | 2 | 217 | 1,048 |
Gross losses | $ (73) | $ (9) | $ (122) |
Securities (Maturity) (Details)
Securities (Maturity) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Amortized Cost | |
Within one year | $ 1,682 |
One to five years | 53,670 |
Five to ten years | 38,951 |
Beyond ten years | 112,174 |
Amortized Cost | 206,477 |
Fair Value | |
Within one year | 1,671 |
One to five years | 52,708 |
Five to ten years | 38,677 |
Beyond ten years | 111,202 |
Fair Value | $ 204,258 |
Securities (Additional Informat
Securities (Additional Information) (Details) $ in Thousands | Dec. 31, 2018USD ($)securities | Dec. 31, 2017USD ($) |
Debt Securities, Available-for-sale [Line Items] | ||
Securities available-for-sale | $ 204,258 | $ 150,969 |
Number of securities | 266 | |
Number of securities in an unrealized loss position | securities | 167 | |
Credit Concentration Risk | Securities | Tax-exempt securities backed by the Michigan School Bond Loan Fund | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of securities | securities | 51 | |
Securities available-for-sale | $ 37,200 | |
Collateral pledged | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities pledged | $ 22,700 | $ 36,500 |
Securities (Securities with Unr
Securities (Securities with Unrealized Losses) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair value | ||
Less than 12 Months | $ 38,263 | $ 61,432 |
12 Months or Longer | 96,600 | 44,740 |
Total | 134,863 | 106,172 |
Unrealized Losses | ||
Less than 12 Months | (224) | (594) |
12 Months or Longer | (2,844) | (1,374) |
Total | (3,068) | (1,968) |
U.S. government sponsored entities & agencies | ||
Fair value | ||
Less than 12 Months | 978 | |
12 Months or Longer | 0 | |
Total | 978 | |
Unrealized Losses | ||
Less than 12 Months | (11) | |
12 Months or Longer | 0 | |
Total | (11) | |
State and political subdivision | ||
Fair value | ||
Less than 12 Months | 5,121 | 17,285 |
12 Months or Longer | 27,667 | 6,002 |
Total | 32,788 | 23,287 |
Unrealized Losses | ||
Less than 12 Months | (25) | (127) |
12 Months or Longer | (579) | (202) |
Total | (604) | (329) |
Mortgage-backed securities: residential | ||
Fair value | ||
Less than 12 Months | 2,595 | 1,966 |
12 Months or Longer | 6,393 | 6,226 |
Total | 8,988 | 8,192 |
Unrealized Losses | ||
Less than 12 Months | (4) | (33) |
12 Months or Longer | (375) | (228) |
Total | (379) | (261) |
Mortgage-backed securities: commercial | ||
Fair value | ||
Less than 12 Months | 1,967 | 5,874 |
12 Months or Longer | 8,944 | 1,867 |
Total | 10,911 | 7,741 |
Unrealized Losses | ||
Less than 12 Months | (8) | (31) |
12 Months or Longer | (221) | (41) |
Total | (229) | (72) |
Collateralized mortgage obligations: residential | ||
Fair value | ||
Less than 12 Months | 3,814 | 4,609 |
12 Months or Longer | 8,958 | 7,828 |
Total | 12,772 | 12,437 |
Unrealized Losses | ||
Less than 12 Months | (27) | (40) |
12 Months or Longer | (269) | (168) |
Total | (296) | (208) |
Collateralized mortgage obligations: commercial | ||
Fair value | ||
Less than 12 Months | 0 | 15,717 |
12 Months or Longer | 17,939 | 2,813 |
Total | 17,939 | 18,530 |
Unrealized Losses | ||
Less than 12 Months | 0 | (294) |
12 Months or Longer | (500) | (39) |
Total | (500) | (333) |
U.S. Treasury | ||
Fair value | ||
Less than 12 Months | 0 | 3,937 |
12 Months or Longer | 20,481 | 19,637 |
Total | 20,481 | 23,574 |
Unrealized Losses | ||
Less than 12 Months | 0 | (27) |
12 Months or Longer | (751) | (683) |
Total | (751) | (710) |
SBA | ||
Fair value | ||
Less than 12 Months | 12,420 | 8,516 |
12 Months or Longer | 3,268 | 367 |
Total | 15,688 | 8,883 |
Unrealized Losses | ||
Less than 12 Months | (91) | (25) |
12 Months or Longer | (77) | (13) |
Total | (168) | (38) |
Asset backed securities | ||
Fair value | ||
Less than 12 Months | 3,842 | |
12 Months or Longer | 0 | |
Total | 3,842 | |
Unrealized Losses | ||
Less than 12 Months | (30) | |
12 Months or Longer | 0 | |
Total | (30) | |
Corporate bonds | ||
Fair value | ||
Less than 12 Months | 7,526 | 3,528 |
12 Months or Longer | 2,950 | 0 |
Total | 10,476 | 3,528 |
Unrealized Losses | ||
Less than 12 Months | (28) | (17) |
12 Months or Longer | (72) | 0 |
Total | $ (100) | $ (17) |
Loans (Recorded Investment in L
Loans (Recorded Investment in Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | $ 1,126,565 | $ 1,034,923 | |
Residential loans held for sale | 5,595 | 4,548 | |
Proceeds from sales of residential real estate loans | 91,091 | 69,753 | $ 74,995 |
Commercial real estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 562,093 | 511,762 | |
Commercial and industrial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 383,455 | 377,686 | |
Residential real estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 180,018 | 144,439 | |
Consumer | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 999 | 1,036 | |
Originated | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 1,041,898 | 920,895 | |
Originated | Commercial real estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 500,809 | 431,872 | |
Originated | Commercial and industrial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 375,130 | 365,679 | |
Originated | Residential real estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 165,015 | 122,551 | |
Originated | Consumer | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 944 | 793 | |
Acquired | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 84,667 | 114,028 | |
Acquired | Commercial real estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 61,284 | 79,890 | |
Acquired | Commercial and industrial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 8,325 | 12,007 | |
Acquired | Residential real estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | 15,003 | 21,888 | |
Acquired | Consumer | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total loans | $ 55 | $ 243 |
Loans (Nonperforming Assets) (D
Loans (Nonperforming Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans 90 days or more past due and still accruing | $ 243 | $ 440 |
Nonperforming | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonperforming loans | 18,447 | 14,048 |
Other real estate owned | 0 | 652 |
Total nonperforming assets | 18,447 | 14,700 |
Nonperforming | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonperforming loans | 5,927 | 2,257 |
Nonperforming | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonperforming loans | 9,605 | 9,024 |
Nonperforming | Residential real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonperforming loans | $ 2,915 | $ 2,767 |
Loans (Loan Delinquency) (Detai
Loans (Loan Delinquency) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | $ 1,126,565 | $ 1,034,923 |
Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 1,116,776 | 1,020,677 |
30 - 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 3,660 | 8,322 |
60 - 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 1,397 | 5,125 |
90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 4,732 | 799 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 562,093 | 511,762 |
Commercial real estate | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 559,523 | 507,250 |
Commercial real estate | 30 - 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 497 | 3,066 |
Commercial real estate | 60 - 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 0 | 1,412 |
Commercial real estate | 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 2,073 | 34 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 383,455 | 377,686 |
Commercial and industrial | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 381,424 | 373,829 |
Commercial and industrial | 30 - 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 664 | 1,397 |
Commercial and industrial | 60 - 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 82 | 2,455 |
Commercial and industrial | 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 1,285 | 5 |
Residential real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 180,018 | 144,439 |
Residential real estate | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 174,831 | 138,613 |
Residential real estate | 30 - 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 2,499 | 3,808 |
Residential real estate | 60 - 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 1,314 | 1,258 |
Residential real estate | 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 1,374 | 760 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 999 | 1,036 |
Consumer | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 998 | 985 |
Consumer | 30 - 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 0 | 51 |
Consumer | 60 - 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 1 | 0 |
Consumer | 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | $ 0 | $ 0 |
Loans (Information as to Impair
Loans (Information as to Impaired Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Impaired [Line Items] | ||
Total performing troubled debt restructurings | $ 5,900 | $ 7,600 |
Total recorded investment | 24,761 | 22,686 |
Performing | ||
Financing Receivable, Impaired [Line Items] | ||
Total performing troubled debt restructurings | 931 | 1,200 |
Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Total recorded investment | 9,951 | 10,297 |
Residential real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Total recorded investment | 4,921 | 4,828 |
Financial Asset, Excluding Purchased Credit Impaired Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Total nonperforming loans | 18,447 | 14,048 |
Total recorded investment | 19,378 | 15,270 |
Financial Asset, Excluding Purchased Credit Impaired Loans | Performing | ||
Financing Receivable, Impaired [Line Items] | ||
Total performing troubled debt restructurings | 931 | 1,222 |
Financial Asset, Excluding Purchased Credit Impaired Loans | Commercial and industrial | Performing | ||
Financing Receivable, Impaired [Line Items] | ||
Total performing troubled debt restructurings | 568 | 961 |
Financial Asset, Excluding Purchased Credit Impaired Loans | Residential real estate | Performing | ||
Financing Receivable, Impaired [Line Items] | ||
Total performing troubled debt restructurings | $ 363 | $ 261 |
Loans (Troubled Debt Restructur
Loans (Troubled Debt Restructuring Additional Information) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Modifications [Line Items] | ||
Recorded investment in troubled debt restructurings | $ 5,900 | $ 7,600 |
Recorded investment in troubled debt restructurings, reserve | 258 | 975 |
Nonperforming | ||
Financing Receivable, Modifications [Line Items] | ||
Recorded investment in troubled debt restructurings | 5,000 | 6,400 |
Performing | ||
Financing Receivable, Modifications [Line Items] | ||
Recorded investment in troubled debt restructurings | $ 931 | $ 1,200 |
Loans (Recorded Investment of L
Loans (Recorded Investment of Loans Modified in TDRs) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)loan | Dec. 31, 2017USD ($)loan | Dec. 31, 2016USD ($)loan | |
Financing Receivable, Modifications [Line Items] | |||
Total recorded investment | $ 3,323 | $ 2,667 | $ 5,971 |
Total number of loans | loan | 10 | 5 | 8 |
Financial effects of modification, net charge offs | $ 101 | $ 0 | $ 14 |
Financial effects of modification, provision for loan losses | 19 | 15 | 852 |
Principal deferral | |||
Financing Receivable, Modifications [Line Items] | |||
Total recorded investment | 3,217 | 1,081 | 289 |
Interest rate | |||
Financing Receivable, Modifications [Line Items] | |||
Total recorded investment | 106 | 357 | 0 |
Forbearance agreement | |||
Financing Receivable, Modifications [Line Items] | |||
Total recorded investment | 0 | 1,229 | 5,682 |
Commercial real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Total recorded investment | $ 2,073 | $ 289 | |
Total number of loans | loan | 4 | 2 | |
Financial effects of modification, net charge offs | $ 101 | $ 0 | |
Financial effects of modification, provision for loan losses | 0 | 0 | |
Commercial real estate | Principal deferral | |||
Financing Receivable, Modifications [Line Items] | |||
Total recorded investment | 2,073 | 289 | |
Commercial real estate | Interest rate | |||
Financing Receivable, Modifications [Line Items] | |||
Total recorded investment | 0 | 0 | |
Commercial real estate | Forbearance agreement | |||
Financing Receivable, Modifications [Line Items] | |||
Total recorded investment | 0 | 0 | |
Commercial and industrial | |||
Financing Receivable, Modifications [Line Items] | |||
Total recorded investment | $ 1,137 | $ 1,526 | $ 5,268 |
Total number of loans | loan | 4 | 2 | 3 |
Financial effects of modification, net charge offs | $ 0 | $ 0 | $ 0 |
Financial effects of modification, provision for loan losses | 14 | 0 | 852 |
Commercial and industrial | Principal deferral | |||
Financing Receivable, Modifications [Line Items] | |||
Total recorded investment | 1,031 | 297 | 0 |
Commercial and industrial | Interest rate | |||
Financing Receivable, Modifications [Line Items] | |||
Total recorded investment | 106 | 0 | 0 |
Commercial and industrial | Forbearance agreement | |||
Financing Receivable, Modifications [Line Items] | |||
Total recorded investment | 0 | 1,229 | 5,268 |
Residential real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Total recorded investment | $ 113 | $ 1,141 | $ 414 |
Total number of loans | loan | 2 | 3 | 3 |
Financial effects of modification, net charge offs | $ 0 | $ 0 | $ 14 |
Financial effects of modification, provision for loan losses | 5 | 15 | 0 |
Residential real estate | Principal deferral | |||
Financing Receivable, Modifications [Line Items] | |||
Total recorded investment | 113 | 784 | 0 |
Residential real estate | Interest rate | |||
Financing Receivable, Modifications [Line Items] | |||
Total recorded investment | 0 | 357 | 0 |
Residential real estate | Forbearance agreement | |||
Financing Receivable, Modifications [Line Items] | |||
Total recorded investment | $ 0 | $ 0 | $ 414 |
Loans (Number of Loans Modified
Loans (Number of Loans Modified in TDRs During Previous 12 Months For Which There Was Payment Default) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)loan | Dec. 31, 2017USD ($)loan | Dec. 31, 2016USD ($)loan | |
Financing Receivable, Modifications [Line Items] | |||
Total number of loans | loan | 4 | 7 | 2 |
Total recorded investment | $ 2,977 | $ 1,521 | $ 289 |
Charged off following a subsequent default | $ 0 | $ 497 | $ 0 |
Commercial real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Total number of loans | loan | 3 | 1 | 2 |
Total recorded investment | $ 2,073 | $ 1,229 | $ 289 |
Charged off following a subsequent default | $ 0 | $ 0 | $ 0 |
Commercial and industrial | |||
Financing Receivable, Modifications [Line Items] | |||
Total number of loans | loan | 1 | 5 | |
Total recorded investment | $ 904 | $ 0 | |
Charged off following a subsequent default | $ 0 | $ 497 | |
Residential real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Total number of loans | loan | 1 | ||
Total recorded investment | $ 292 | ||
Charged off following a subsequent default | $ 0 |
Loans (Risk Category of Loans b
Loans (Risk Category of Loans by Class of Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 1,126,565 | $ 1,034,923 |
Commercial real estate and Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 945,548 | 889,448 |
Commercial real estate and Commercial and industrial | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 914,032 | 854,471 |
Commercial real estate and Commercial and industrial | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 13,081 | 16,609 |
Commercial real estate and Commercial and industrial | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 18,391 | 18,286 |
Commercial real estate and Commercial and industrial | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 44 | 82 |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 562,093 | 511,762 |
Commercial real estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 545,843 | 492,731 |
Commercial real estate | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 10,240 | 10,664 |
Commercial real estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 5,966 | 8,323 |
Commercial real estate | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 44 | 44 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 383,455 | 377,686 |
Commercial and industrial | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 368,189 | 361,740 |
Commercial and industrial | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,841 | 5,945 |
Commercial and industrial | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 12,425 | 9,963 |
Commercial and industrial | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 38 |
Residential real estate and Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 181,017 | 145,475 |
Residential real estate and Consumer | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 178,102 | 142,708 |
Residential real estate and Consumer | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,915 | 2,767 |
Residential real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 180,018 | 144,439 |
Residential real estate | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 177,103 | 141,672 |
Residential real estate | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,915 | 2,767 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 999 | 1,036 |
Consumer | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 999 | 1,036 |
Consumer | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 0 | $ 0 |
Loans (Purchased Credit Impaire
Loans (Purchased Credit Impaired Loans Additional Information) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)acquisition | Dec. 31, 2017USD ($) | |
Receivables [Abstract] | ||
Number of previous acquisitions | acquisition | 4 | |
Purchased credit impaired loans, decrease of allowance for loans losses | $ 161 | |
Purchased credit impaired loans, increase of allowance for loans losses | $ 234 | |
Loans to directors, officers and related interest | 4,000 | 2,100 |
Loans to directors, officers and related interest, new loans and other additions | 2,600 | 1,100 |
Loans to directors, officers and related interest, repayments and other reductions | $ 731 | $ 269 |
Loans (Total Balance of all Pur
Loans (Total Balance of all Purchase Credit Impaired Loans from Acquisitions) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ||
Recorded Investment | $ 24,761 | $ 22,686 |
Commercial real estate | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ||
Recorded Investment | 9,889 | 7,561 |
Commercial and industrial | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ||
Recorded Investment | 9,951 | 10,297 |
Residential real estate | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ||
Recorded Investment | 4,921 | 4,828 |
Acquired with deteriorated credit quality | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ||
Unpaid Principal Balance | 12,557 | 14,960 |
Recorded Investment | 7,875 | 9,746 |
Acquired with deteriorated credit quality | Commercial real estate | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ||
Unpaid Principal Balance | 7,406 | 10,084 |
Recorded Investment | 4,344 | 5,771 |
Acquired with deteriorated credit quality | Commercial and industrial | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ||
Unpaid Principal Balance | 177 | 808 |
Recorded Investment | 122 | 417 |
Acquired with deteriorated credit quality | Residential real estate | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ||
Unpaid Principal Balance | 4,974 | 4,068 |
Recorded Investment | $ 3,409 | $ 3,558 |
Loans (Activity in the Accretab
Loans (Activity in the Accretable Yield of PCI Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||
Balance at beginning of period | $ 14,452 | $ 19,893 | $ 27,852 |
Additions due to acquisitions | 0 | 0 | 741 |
Accretion of income | (3,794) | (5,340) | (8,412) |
Adjustments to accretable yield | 304 | 121 | 250 |
Other activity, net | (15) | (222) | (538) |
Balance at end of period | $ 10,947 | $ 14,452 | $ 19,893 |
Allowance (Additional Informati
Allowance (Additional Information) (Details) | Dec. 31, 2018loan_poolloan |
Receivables [Abstract] | |
Number of purchase credit impaired loan pools | loan_pool | 6 |
Number of non-pooled purchase credit impaired loans | loan | 12 |
Allowance (Loans Individually E
Allowance (Loans Individually Evaluated for Impairment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Impaired [Line Items] | |||
Recorded with no related allowance | $ 13,456 | $ 9,156 | |
Recorded with related allowance | 11,305 | 13,530 | |
Total recorded investment | 24,761 | 22,686 | |
Contractual principal balance | 30,091 | 31,715 | |
Related allowance | 1,442 | 2,579 | |
Average Recorded Investment | 22,326 | 31,244 | $ 14,980 |
Interest Income Recognized | 2,082 | 2,251 | 2,304 |
Cash Basis Interest Recognized | 254 | 0 | 94 |
Commercial real estate | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded with no related allowance | 5,898 | 2,222 | |
Recorded with related allowance | 3,991 | 5,339 | |
Total recorded investment | 9,889 | 7,561 | |
Contractual principal balance | 13,076 | 13,536 | |
Related allowance | 815 | 876 | |
Average Recorded Investment | 9,471 | 8,145 | 689 |
Interest Income Recognized | 1,622 | 1,710 | 1,719 |
Cash Basis Interest Recognized | 142 | 0 | 1 |
Commercial and industrial | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded with no related allowance | 5,892 | 5,238 | |
Recorded with related allowance | 4,059 | 5,059 | |
Total recorded investment | 9,951 | 10,297 | |
Contractual principal balance | 10,411 | 11,677 | |
Related allowance | 526 | 1,549 | |
Average Recorded Investment | 7,673 | 17,738 | 8,894 |
Interest Income Recognized | 91 | 238 | 59 |
Cash Basis Interest Recognized | 112 | 0 | 82 |
Residential real estate | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded with no related allowance | 1,666 | 1,696 | |
Recorded with related allowance | 3,255 | 3,132 | |
Total recorded investment | 4,921 | 4,828 | |
Contractual principal balance | 6,604 | 6,502 | |
Related allowance | 101 | 154 | |
Average Recorded Investment | 5,182 | 5,361 | 5,379 |
Interest Income Recognized | 369 | 303 | 526 |
Cash Basis Interest Recognized | $ 0 | $ 0 | 11 |
Consumer | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 18 | ||
Interest Income Recognized | 0 | ||
Cash Basis Interest Recognized | $ 0 |
Allowance (Activity in Allowanc
Allowance (Activity in Allowance for Loan Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||
Beginning Balance | $ 11,713 | $ 11,089 | $ 11,713 | $ 11,089 | $ 7,890 | ||||||||
Provision (benefit) for loan losses | $ (51) | $ 619 | $ (710) | 554 | $ 956 | $ 194 | $ 68 | 198 | 412 | 1,416 | 3,925 | ||
Gross chargeoffs | (1,477) | (1,142) | (1,154) | ||||||||||
Recoveries | 918 | 350 | 428 | ||||||||||
Net (chargeoffs) recoveries | (559) | (792) | (726) | ||||||||||
Ending Allowance for loan losses | 11,566 | 11,713 | 11,566 | 11,713 | 11,089 | ||||||||
Allowance for loan losses and Balance of loans | |||||||||||||
Allowance for loan losses, individually evaluated for impairment | $ 522 | $ 1,498 | |||||||||||
Allowance for loan losses, Collectively evaluated for impairment | 10,124 | 9,134 | |||||||||||
Ending Allowance for loan losses | 11,566 | 11,713 | 11,713 | 11,089 | 11,713 | 11,089 | 7,890 | 11,566 | 11,713 | ||||
Balance of loans, individually evaluated for impairment | 17,581 | 13,976 | |||||||||||
Balance of loans, collectively evaluated for impairment | 1,101,109 | 1,011,201 | |||||||||||
Total loans | 1,126,565 | 1,034,923 | |||||||||||
Acquired with deteriorated credit quality | |||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||
Beginning Balance | 1,081 | 1,081 | |||||||||||
Ending Allowance for loan losses | 920 | 1,081 | 920 | 1,081 | |||||||||
Allowance for loan losses and Balance of loans | |||||||||||||
Ending Allowance for loan losses | 920 | 1,081 | 1,081 | 1,081 | 1,081 | 920 | 1,081 | ||||||
Total loans | 7,875 | 9,746 | |||||||||||
Commercial real estate | |||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||
Beginning Balance | 4,852 | 4,124 | 4,852 | 4,124 | 3,299 | ||||||||
Provision (benefit) for loan losses | 464 | 1,071 | 772 | ||||||||||
Gross chargeoffs | (112) | (360) | 0 | ||||||||||
Recoveries | 23 | 17 | 53 | ||||||||||
Net (chargeoffs) recoveries | (89) | (343) | 53 | ||||||||||
Ending Allowance for loan losses | 5,227 | 4,852 | 5,227 | 4,852 | 4,124 | ||||||||
Allowance for loan losses and Balance of loans | |||||||||||||
Allowance for loan losses, individually evaluated for impairment | 0 | 0 | |||||||||||
Allowance for loan losses, Collectively evaluated for impairment | 4,412 | 3,976 | |||||||||||
Ending Allowance for loan losses | 5,227 | 4,852 | 4,852 | 4,124 | 4,852 | 4,124 | 3,299 | 5,227 | 4,852 | ||||
Balance of loans, individually evaluated for impairment | 5,898 | 2,222 | |||||||||||
Balance of loans, collectively evaluated for impairment | 551,851 | 503,769 | |||||||||||
Total loans | 562,093 | 511,762 | |||||||||||
Commercial real estate | Acquired with deteriorated credit quality | |||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||
Beginning Balance | 876 | 876 | |||||||||||
Ending Allowance for loan losses | 815 | 876 | 815 | 876 | |||||||||
Allowance for loan losses and Balance of loans | |||||||||||||
Ending Allowance for loan losses | 815 | 876 | 876 | 876 | 876 | 815 | 876 | ||||||
Total loans | 4,344 | 5,771 | |||||||||||
Commercial and industrial | |||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||
Beginning Balance | 5,903 | 5,932 | 5,903 | 5,932 | 3,256 | ||||||||
Provision (benefit) for loan losses | (269) | 478 | 3,447 | ||||||||||
Gross chargeoffs | (1,283) | (697) | (943) | ||||||||||
Recoveries | 823 | 190 | 172 | ||||||||||
Net (chargeoffs) recoveries | (460) | (507) | (771) | ||||||||||
Ending Allowance for loan losses | 5,174 | 5,903 | 5,174 | 5,903 | 5,932 | ||||||||
Allowance for loan losses and Balance of loans | |||||||||||||
Allowance for loan losses, individually evaluated for impairment | 504 | 1,480 | |||||||||||
Allowance for loan losses, Collectively evaluated for impairment | 4,648 | 4,354 | |||||||||||
Ending Allowance for loan losses | 5,174 | 5,903 | 5,903 | 5,932 | 5,903 | 5,932 | 3,256 | 5,174 | 5,903 | ||||
Balance of loans, individually evaluated for impairment | 9,829 | 9,976 | |||||||||||
Balance of loans, collectively evaluated for impairment | 373,504 | 367,293 | |||||||||||
Total loans | 383,455 | 377,686 | |||||||||||
Commercial and industrial | Acquired with deteriorated credit quality | |||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||
Beginning Balance | 69 | 69 | |||||||||||
Ending Allowance for loan losses | 22 | 69 | 22 | 69 | |||||||||
Allowance for loan losses and Balance of loans | |||||||||||||
Ending Allowance for loan losses | 22 | 69 | 69 | 69 | 69 | 22 | 69 | ||||||
Total loans | 122 | 417 | |||||||||||
Residential real estate | |||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||
Beginning Balance | 950 | 1,030 | 950 | 1,030 | 1,307 | ||||||||
Provision (benefit) for loan losses | 191 | (136) | (267) | ||||||||||
Gross chargeoffs | (47) | (85) | (211) | ||||||||||
Recoveries | 70 | 141 | 201 | ||||||||||
Net (chargeoffs) recoveries | 23 | 56 | (10) | ||||||||||
Ending Allowance for loan losses | 1,164 | 950 | 1,164 | 950 | 1,030 | ||||||||
Allowance for loan losses and Balance of loans | |||||||||||||
Allowance for loan losses, individually evaluated for impairment | 18 | 18 | |||||||||||
Allowance for loan losses, Collectively evaluated for impairment | 1,063 | 796 | |||||||||||
Ending Allowance for loan losses | 1,164 | 950 | 950 | 1,030 | 950 | 1,030 | 1,307 | 1,164 | 950 | ||||
Balance of loans, individually evaluated for impairment | 1,854 | 1,778 | |||||||||||
Balance of loans, collectively evaluated for impairment | 174,755 | 139,103 | |||||||||||
Total loans | 180,018 | 144,439 | |||||||||||
Residential real estate | Acquired with deteriorated credit quality | |||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||
Beginning Balance | 136 | 136 | |||||||||||
Ending Allowance for loan losses | 83 | 136 | 83 | 136 | |||||||||
Allowance for loan losses and Balance of loans | |||||||||||||
Ending Allowance for loan losses | 83 | 136 | 136 | 136 | 136 | 83 | 136 | ||||||
Total loans | 3,409 | 3,558 | |||||||||||
Consumer | |||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||
Beginning Balance | 8 | 3 | 8 | 3 | 28 | ||||||||
Provision (benefit) for loan losses | 26 | 3 | (27) | ||||||||||
Gross chargeoffs | (35) | 0 | 0 | ||||||||||
Recoveries | 2 | 2 | 2 | ||||||||||
Net (chargeoffs) recoveries | (33) | 2 | 2 | ||||||||||
Ending Allowance for loan losses | 1 | 8 | 1 | 8 | 3 | ||||||||
Allowance for loan losses and Balance of loans | |||||||||||||
Allowance for loan losses, individually evaluated for impairment | 0 | 0 | |||||||||||
Allowance for loan losses, Collectively evaluated for impairment | 1 | 8 | |||||||||||
Ending Allowance for loan losses | 1 | 8 | 8 | $ 3 | 8 | 3 | $ 28 | 1 | 8 | ||||
Balance of loans, individually evaluated for impairment | 0 | 0 | |||||||||||
Balance of loans, collectively evaluated for impairment | 999 | 1,036 | |||||||||||
Total loans | 999 | 1,036 | |||||||||||
Consumer | Acquired with deteriorated credit quality | |||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||
Beginning Balance | 0 | 0 | |||||||||||
Ending Allowance for loan losses | 0 | 0 | 0 | 0 | |||||||||
Allowance for loan losses and Balance of loans | |||||||||||||
Ending Allowance for loan losses | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | 0 | 0 | ||||||
Total loans | $ 0 | $ 0 |
Premises and Equipment (Additio
Premises and Equipment (Additional Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Total premises and equipment | $ 19,675 | $ 18,598 | |
Less: Accumulated depreciation | 6,433 | 5,163 | |
Net premises and equipment | 13,242 | 13,435 | |
Depreciation of fixed assets | 1,332 | 1,369 | $ 1,445 |
Operating lease, rent expense | 1,100 | 909 | $ 604 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Total premises and equipment | 2,197 | 2,197 | |
Building | |||
Property, Plant and Equipment [Line Items] | |||
Total premises and equipment | 9,746 | 9,132 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total premises and equipment | 1,708 | 1,655 | |
Furniture, fixtures and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total premises and equipment | $ 6,024 | $ 5,614 |
Premises and Equipment (Rent Co
Premises and Equipment (Rent Commitments under Non-cancelable Operating Leases) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2019 | $ 1,160 |
2020 | 1,013 |
2021 | 835 |
2022 | 842 |
2023 | 787 |
Thereafter | 3,235 |
Total lease commitments | $ 7,872 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Additional Information) (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 13 Months Ended | |||
Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Mar. 31, 2016acquisition | |
Goodwill [Line Items] | |||||||
Number of banks acquired | acquisition | 2 | ||||||
Goodwill | $ 9,387,000 | $ 9,387,000 | $ 9,387,000 | ||||
Change in goodwill | $ 0 | 0 | |||||
Amortization of core deposit intangibles | $ 220,000 | $ 234,000 | $ 233,000 | ||||
Lotus Bank | |||||||
Goodwill [Line Items] | |||||||
Goodwill acquired | $ 4,600,000 | ||||||
Bank of Michigan | |||||||
Goodwill [Line Items] | |||||||
Goodwill acquired | $ 4,800,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Acquired Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Gross carrying amount | $ 2,045 | $ 2,045 |
Accumulated amortization | (1,598) | (1,378) |
Net Intangible | $ 447 | $ 667 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Estimated Amortization Expense) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2019 | $ 116 |
2020 | 102 |
2021 | 68 |
2022 | 53 |
2023 | $ 39 |
Deposits (Narrative) (Details)
Deposits (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Banking and Thrift [Abstract] | ||
Related Party Deposit Liabilities | $ 38.9 | $ 81.2 |
Time deposits, exceeding FDIC insurance limit, $250,000 | 211.7 | 187.5 |
Brokered deposits | $ 110.3 | $ 87.8 |
Deposits (Scheduled Maturities
Deposits (Scheduled Maturities of Total Time Deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Banking and Thrift [Abstract] | ||
Due in 2019 | $ 408,408 | |
Due in 2020 | 66,609 | |
Due in 2021 | 7,446 | |
Due in 2022 | 2,063 | |
Due in 2023 | 346 | |
Thereafter | 0 | |
Total | $ 484,872 | $ 443,452 |
Borrowings and Subordinated D_3
Borrowings and Subordinated Debt (Components of Long-term Debt and Short-term Borrowings) (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Short-term Debt [Line Items] | ||
Total short-term borrowings | $ 98,129,000 | $ 36,319,000 |
Total short-term borrowings, weighted average rate | 2.53% | 1.22% |
Debt Instrument [Line Items] | ||
Total long-term debt, amount | $ 16,336,000 | $ 26,358,000 |
Total long-term debt, weighted average rate | 5.90% | 4.31% |
Total short-term and long-term borrowings | $ 114,465,000 | $ 62,677,000 |
Total short-term and long-term borrowings, weighted average rate | 3.01% | 2.52% |
Securities sold under agreements to repurchase | ||
Short-term Debt [Line Items] | ||
Total short-term borrowings | $ 609,000 | $ 1,319,000 |
Total short-term borrowings, weighted average rate | 0.30% | 0.30% |
FHLB line of credit | ||
Short-term Debt [Line Items] | ||
Total short-term borrowings | $ 2,520,000 | $ 0 |
Total short-term borrowings, weighted average rate | 2.87% | 0.00% |
Federal funds purchased | ||
Short-term Debt [Line Items] | ||
Total short-term borrowings | $ 5,000,000 | $ 0 |
Total short-term borrowings, weighted average rate | 2.50% | 0.00% |
FHLB Advances | ||
Short-term Debt [Line Items] | ||
Total short-term borrowings | $ 90,000,000 | $ 35,000,000 |
Total short-term borrowings, weighted average rate | 2.54% | 1.25% |
Secured borrowings | Secured borrowing due in 2022 | ||
Debt Instrument [Line Items] | ||
Total long-term debt, amount | $ 1,445,000 | $ 1,514,000 |
Total long-term debt, weighted average rate | 1.00% | 1.00% |
FHLB Advances | FHLB advances due in 2022 | ||
Debt Instrument [Line Items] | ||
Total long-term debt, amount | $ 0 | $ 10,000,000 |
Total long-term debt, weighted average rate | 0.00% | 1.75% |
Subordinated notes | Subordinated notes due in 2025 | ||
Debt Instrument [Line Items] | ||
Total long-term debt, amount | $ 14,891,000 | $ 14,844,000 |
Total long-term debt, weighted average rate | 6.38% | 6.38% |
Long-term debt gross | $ 15,000,000 | $ 15,000,000 |
Debt issuance costs | $ 109,000 | $ 156,000 |
Borrowings and Subordinated D_4
Borrowings and Subordinated Debt (Additional Information) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Short-term Debt [Line Items] | ||
Total short-term borrowings | $ 98,129,000 | $ 36,319,000 |
Debt Instrument [Line Items] | ||
Federal Home Loan Bank, advances, collateral | 372,500,000 | |
Federal Home Loan Bank, advances, maximum borrowing capacity | 131,600,000 | |
Subordinated notes | 16,336,000 | 26,358,000 |
Maturity overnight | ||
Short-term Debt [Line Items] | ||
Fair value of collateralized mortgage obligations | 1,000,000 | |
FHLB line of credit | Unsecured borrowings | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 125,000,000 | |
Secured borrowings | Secured borrowing due in 2022 | ||
Debt Instrument [Line Items] | ||
Subordinated notes | $ 1,445,000 | 1,514,000 |
Fixed interest rate | 1.00% | |
Subordinated notes | Subordinated notes due in 2025 | ||
Debt Instrument [Line Items] | ||
Subordinated notes | $ 14,891,000 | 14,844,000 |
Fixed interest rate | 6.375% | |
Long-term debt gross | $ 15,000,000 | 15,000,000 |
Debt issuance costs | $ 109,000 | 156,000 |
Subordinated notes | Subordinated notes due in 2025 | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 4.77% | |
Federal funds purchased | ||
Short-term Debt [Line Items] | ||
Total short-term borrowings | $ 5,000,000 | 0 |
Securities sold under agreements to repurchase | ||
Short-term Debt [Line Items] | ||
Total short-term borrowings | 609,000 | $ 1,319,000 |
Securities sold under agreements to repurchase | Maturity overnight | ||
Short-term Debt [Line Items] | ||
Total short-term borrowings | 609,000 | |
Federal Reserve Bank | FHLB line of credit | Secured borrowings | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 5,000,000 |
Income Taxes (Current and Defer
Income Taxes (Current and Deferred Components of the Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
Current expense | $ 2,974 | $ 5,721 | $ 6,163 | ||||||||
Remeasurement due to tax reform | 0 | 1,293 | 0 | ||||||||
Deferred expense (benefit) | 29 | (291) | (63) | ||||||||
Income tax expense | $ 836 | $ 665 | $ 860 | $ 642 | $ 2,317 | $ 1,259 | $ 1,650 | $ 1,497 | $ 3,003 | $ 6,723 | $ 6,100 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Expected Income Tax Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
Federal statutory income tax rate | 21.00% | 35.00% | 35.00% | ||||||||
Income tax expense based on federal corporate tax rate | $ 3,651 | $ 5,797 | $ 6,001 | ||||||||
Changes resulting from: | |||||||||||
Tax-exempt income | (406) | (446) | (211) | ||||||||
Remeasurement due to tax reform | 0 | 1,293 | 0 | ||||||||
Captive Insurance Benefit | (198) | (143) | 0 | ||||||||
Other, net | (44) | 222 | 310 | ||||||||
Income tax expense | $ 836 | $ 665 | $ 860 | $ 642 | $ 2,317 | $ 1,259 | $ 1,650 | $ 1,497 | $ 3,003 | $ 6,723 | $ 6,100 |
Income Taxes (Additional Inform
Income Taxes (Additional Information) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Tax benefit, share awards vesting/exercised during period | $ 108,000 | $ 27,000 | |
Unrecognized tax benefits | 0 | ||
Unrecognized tax benefits, interest and penalties | 0 | 0 | $ 0 |
Tax expense as a result of the TCJA | $ 0 | $ 1,293,000 | $ 0 |
Income Taxes Income Taxes (Tax
Income Taxes Income Taxes (Tax Effects of Temporary Differences) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Allowance for loan losses | $ 2,429 | $ 2,460 |
Start-up/pre-opening expenses | 76 | 100 |
Stock options | 108 | 100 |
Deferred loan fees | 213 | 195 |
Unrealized loss—available for sale securities | 466 | 253 |
Nonaccrued Interest | 156 | 177 |
Accrued expenses | 91 | 95 |
Other | 232 | 90 |
Total gross deferred tax assets | 3,771 | 3,470 |
Deferred tax liabilities: | ||
Depreciation | (559) | (554) |
Prepaid expenses | (304) | (199) |
Business combination adjustments | (521) | (532) |
Partnership Investments | (306) | (288) |
Other | (12) | (12) |
Total gross deferred tax liabilities | (1,702) | (1,585) |
Net deferred tax assets | $ 2,069 | $ 1,885 |
Stock Based Compensation (2007
Stock Based Compensation (2007 Stock Option Plan) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 16, 2008 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate intrinsic value, stock options outstanding | $ 2,400 | |||
Aggregate intrinsic value, options exercisable | 2,300 | |||
2007 Stock Option Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares of common stock reserved for issuance (in shares) | 630,265 | |||
Intrinsic value from options exercised | 1,800 | $ 755 | $ 294 | |
Cash received from options exercised, including tax benefit | $ 1,400 | 605 | 300 | |
2007 Stock Option Plan | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Term of options | P10Y | |||
Vesting period | 3 years | |||
Unrecognized compensation costs | $ 104 | |||
Weighted-average recognition period for unrecognized compensation costs | 1 year 4 months 30 days | |||
Share-based compensation expense | $ 155 | $ 165 | $ 169 | |
2007 Stock Option Plan | Stock Options | Tranche 1 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 33.33% | |||
2007 Stock Option Plan | Stock Options | Tranche 2 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 33.33% | |||
2007 Stock Option Plan | Stock Options | Tranche 3 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 33.33% |
Stock Based Compensation (Weigh
Stock Based Compensation (Weighted-Average Assumptions) (Details) - Stock Options - 2007 Stock Option Plan - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk Free Interest Rate | 2.83% | 1.51% |
Expected Term | 7 years | 7 years |
Expected Volatility | 0.04% | 0.04% |
Weighted average fair value of options granted (in dollars per share) | $ 4.46 | $ 3.05 |
Stock Based Compensation (Emplo
Stock Based Compensation (Employee Stock Option Activity) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Shares | |||
Exercised (in shares) | (127,494) | (57,506) | (27,008) |
2007 Stock Option Plan | |||
Shares | |||
Outstanding at beginning of period (in shares) | 484,147 | 555,153 | |
Granted (in shares) | 30,000 | 0 | |
Exercised (in shares) | (127,494) | (57,506) | |
Forfeited (in shares) | (9,885) | (13,500) | |
Outstanding at end of period (in shares) | 376,768 | 484,147 | 555,153 |
Exercisable (in shares) | 317,263 | 392,134 | |
Weighted Average Exercise Price | |||
Outstanding at beginning of period (in dollars per share) | $ 13.96 | $ 13.52 | |
Granted (in dollars per share) | 24.80 | 0 | |
Exercised (in dollars per share) | 10.04 | 10.53 | |
Forfeited (in dollars per share) | 10 | 10.22 | |
Outstanding at end of period (in dollars per share) | 16.26 | 13.96 | $ 13.52 |
Exercisable (in dollars per share) | $ 15.03 | $ 12.62 | |
Weighted Average Remaining Contractual Term | |||
Outstanding at end of period | 5 years 9 months 21 days | 4 years 7 months 35 days | 5 years 4 months 24 days |
Exercisable at end of period | 5 years 4 months 17 days | 3 years 10 months 25 days |
Stock Based Compensation (2014
Stock Based Compensation (2014 Equity Incentive Plan) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2014 | |
Restricted Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 37,021 | ||
2014 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock reserved for issuance (in shares) | 150,000 | ||
2014 Equity Incentive Plan | Restricted Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 30,271 | 32,977 |
Stock Based Compensation (2018
Stock Based Compensation (2018 Equity Incentive Plan) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Apr. 17, 2018 | |
Restricted Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 37,021 | |||
Unrecognized compensation costs | $ 684 | |||
Weighted-average recognition period for unrecognized compensation costs | 1 year 10 months 25 days | |||
Fair value of shares vested during period | $ 311 | $ 309 | ||
Share-based compensation expense | $ 660 | $ 448 | $ 195 | |
2018 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares of common stock reserved for issuance (in shares) | 250,000 | |||
Share available to be granted (in shares) | 243,250 | |||
2018 Plan | Restricted Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 6,750 |
Stock Based Compensation (Chang
Stock Based Compensation (Changes in Nonvested Shares) (Details) - Restricted Stock Awards | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Shares | |
Nonvested at beginning of period (in shares) | shares | 30,150 |
Granted (in shares) | shares | 37,021 |
Vested (in shares) | shares | (13,401) |
Nonvested at end of period (in shares) | shares | 53,770 |
Weighted Average Grant-Date Fair Value | |
Nonvested at beginning of period (in dollars per share) | $ / shares | $ 22.03 |
Granted (in dollars per share) | $ / shares | 25.53 |
Vested (in dollars per share) | $ / shares | 23.20 |
Nonvested at end of period (in dollars per share) | $ / shares | $ 24.14 |
Other Benefit Plans (Additional
Other Benefit Plans (Additional Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | |||
401 (k) plan, safe harbor, non-elective contribution percentage | 3.00% | ||
401 (k) plan, contributions | $ 537 | $ 460 | $ 405 |
Executive Officers | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Deferred compensation plan, expenses incurred | 148 | 149 | 81 |
Deferred compensation plan, deferred compensation liability | $ 415 | $ 267 | $ 117 |
Off-Balance Sheet Activities (A
Off-Balance Sheet Activities (Additional Information) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitment to make loans, maximum term | 90 days | |
Commitments to make loans | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet exposure, fixed rates | $ 8,608 | $ 5,041 |
Off-balance sheet exposure, variable rates | 10,900 | 8,837 |
Unused lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet exposure, fixed rates | 18,672 | 12,407 |
Off-balance sheet exposure, variable rates | 229,490 | 189,787 |
Unused standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet exposure, fixed rates | 3,861 | 3,584 |
Off-balance sheet exposure, variable rates | $ 232 | $ 1,411 |
Minimum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed rate loan commitments, interest rate | 4.88% | |
Fixed rate loan commitments, maturity | 5 years | |
Maximum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed rate loan commitments, interest rate | 5.75% | |
Fixed rate loan commitments, maturity | 30 years |
Regulatory Capital Matters (Add
Regulatory Capital Matters (Additional Information) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Common equity tier 1 to risk-weighted assets: | ||
Actual capital, amount | $ 170,503 | $ 125,472 |
Actual capital, ratio | 14.00% | 11.55% |
Required capital adequacy, amount | $ 97,428 | $ 86,940 |
Required capital adequacy, ratio | 8.00% | 8.00% |
Required capital adequacy with capital conservation buffer, amount | $ 120,324 | $ 100,525 |
Required capital adequacy, ratio | 9.88% | 9.25% |
Tier 1 capital to risk-weighted assets: | ||
Actual capital, amount | $ 144,008 | $ 98,912 |
Actual capital, ratio | 11.82% | 9.10% |
Required capital adequacy, amount | $ 73,071 | $ 65,205 |
Required capital adequacy, ratio | 6.00% | 6.00% |
Required capital adequacy with capital conservation buffer, amount | $ 95,967 | $ 78,790 |
Required capital adequacy, ratio | 7.88% | 7.25% |
Total capital to risk-weighted assets: | ||
Actual capital, amount | $ 144,008 | $ 98,912 |
Actual capital, ratio | 11.82% | 9.10% |
Required capital adequacy, amount | $ 54,803 | $ 48,904 |
Required capital adequacy, ratio | 4.50% | 4.50% |
Required capital adequacy with capital conservation buffer, amount | $ 77,699 | $ 62,488 |
Required capital adequacy with capital conservation buffer, ratio | 6.38% | 5.75% |
Tier 1 capital to average assets (leverage ratio): | ||
Actual capital, amount | $ 144,008 | $ 98,912 |
Actual capital, ratio | 10.21% | 7.92% |
Required capital adequacy, amount | $ 56,411 | $ 49,978 |
Required capital adequacy, ratio | 4.00% | 4.00% |
Required capital adequacy with capital conservation buffer, amount | $ 56,411 | $ 49,978 |
Required capital adequacy with capital conservation buffer, ratio | 4.00% | 4.00% |
Amount available for dividend payment without regulatory approval | $ 31,300 | |
Bank | ||
Common equity tier 1 to risk-weighted assets: | ||
Actual capital, amount | $ 159,100 | $ 123,496 |
Actual capital, ratio | 13.07% | 11.37% |
Required capital adequacy, amount | $ 97,386 | $ 86,917 |
Required capital adequacy, ratio | 8.00% | 8.00% |
Required capital adequacy with capital conservation buffer, amount | $ 120,272 | $ 100,498 |
Required capital adequacy, ratio | 9.88% | 9.25% |
Prompt corrective action provisions, amount | $ 121,733 | $ 108,646 |
Prompt corrective action provisions, ratio | 10.00% | 10.00% |
Tier 1 capital to risk-weighted assets: | ||
Actual capital, amount | $ 147,495 | $ 111,781 |
Actual capital, ratio | 12.12% | 10.29% |
Required capital adequacy, amount | $ 73,040 | $ 65,188 |
Required capital adequacy, ratio | 6.00% | 6.00% |
Required capital adequacy with capital conservation buffer, amount | $ 95,926 | $ 78,768 |
Required capital adequacy, ratio | 7.88% | 7.25% |
Prompt corrective action provisions, amount | $ 97,386 | $ 86,917 |
Prompt corrective action provisions, ratio | 8.00% | 8.00% |
Total capital to risk-weighted assets: | ||
Actual capital, amount | $ 147,495 | $ 111,781 |
Actual capital, ratio | 12.12% | 10.29% |
Required capital adequacy, amount | $ 54,780 | $ 48,891 |
Required capital adequacy, ratio | 4.50% | 4.50% |
Required capital adequacy with capital conservation buffer, amount | $ 77,666 | $ 62,472 |
Required capital adequacy with capital conservation buffer, ratio | 6.38% | 5.75% |
Prompt corrective action provisions, amount | $ 79,126 | $ 70,620 |
Prompt corrective action provisions, ratio | 6.50% | 6.50% |
Tier 1 capital to average assets (leverage ratio): | ||
Actual capital, amount | $ 147,495 | $ 111,781 |
Actual capital, ratio | 10.48% | 8.96% |
Required capital adequacy, amount | $ 56,309 | $ 49,893 |
Required capital adequacy, ratio | 4.00% | 4.00% |
Required capital adequacy with capital conservation buffer, amount | $ 56,309 | $ 49,893 |
Required capital adequacy with capital conservation buffer, ratio | 4.00% | 4.00% |
Prompt corrective action provisions, amount | $ 70,386 | $ 62,366 |
Prompt corrective action provisions, ratio | 5.00% | 5.00% |
Fair Value (Fair Value Measurem
Fair Value (Fair Value Measurements of Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financial assets: | ||
Securities available-for-sale | $ 204,258 | $ 150,969 |
Recurring | ||
Financial assets: | ||
Securities available-for-sale | 204,258 | 150,969 |
Loans held for sale | 5,595 | 4,548 |
Total assets at fair value | 215,770 | 159,808 |
Total liabilities at fair value | 1,169 | |
Recurring | Residential real estate | ||
Financial assets: | ||
Loans measured at fair value | 4,571 | 4,291 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Securities available-for-sale | 0 | 0 |
Loans held for sale | 0 | 0 |
Total assets at fair value | 0 | 0 |
Total liabilities at fair value | 0 | |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential real estate | ||
Financial assets: | ||
Loans measured at fair value | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Securities available-for-sale | 204,258 | 150,969 |
Loans held for sale | 5,595 | 4,548 |
Total assets at fair value | 211,199 | 155,517 |
Total liabilities at fair value | 1,169 | |
Recurring | Significant Other Observable Inputs (Level 2) | Residential real estate | ||
Financial assets: | ||
Loans measured at fair value | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Securities available-for-sale | 0 | 0 |
Loans held for sale | 0 | 0 |
Total assets at fair value | 4,571 | 4,291 |
Total liabilities at fair value | 0 | |
Recurring | Significant Unobservable Inputs (Level 3) | Residential real estate | ||
Financial assets: | ||
Loans measured at fair value | 4,571 | 4,291 |
Customer-initiated derivatives | Recurring | ||
Financial assets: | ||
Derivative asset | 1,126 | |
Derivative liabilities | 1,126 | |
Customer-initiated derivatives | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Derivative asset | 0 | |
Derivative liabilities | 0 | |
Customer-initiated derivatives | Recurring | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Derivative asset | 1,126 | |
Derivative liabilities | 1,126 | |
Customer-initiated derivatives | Recurring | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Derivative asset | 0 | |
Derivative liabilities | 0 | |
Forward contracts related to mortgage loans to be delivered for sale | Recurring | ||
Financial assets: | ||
Derivative asset | 22 | |
Derivative liabilities | 43 | |
Forward contracts related to mortgage loans to be delivered for sale | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Derivative asset | 0 | |
Derivative liabilities | 0 | |
Forward contracts related to mortgage loans to be delivered for sale | Recurring | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Derivative asset | 22 | |
Derivative liabilities | 43 | |
Forward contracts related to mortgage loans to be delivered for sale | Recurring | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Derivative asset | 0 | |
Derivative liabilities | 0 | |
Interest rate lock commitments | Recurring | ||
Financial assets: | ||
Derivative asset | 198 | |
Interest rate lock commitments | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Derivative asset | 0 | |
Interest rate lock commitments | Recurring | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Derivative asset | 198 | |
Interest rate lock commitments | Recurring | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Derivative asset | 0 | |
U.S. government sponsored entities & agencies | ||
Financial assets: | ||
Securities available-for-sale | 2,397 | |
U.S. government sponsored entities & agencies | Recurring | ||
Financial assets: | ||
Securities available-for-sale | 2,397 | |
U.S. government sponsored entities & agencies | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Securities available-for-sale | 0 | |
U.S. government sponsored entities & agencies | Recurring | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Securities available-for-sale | 2,397 | |
U.S. government sponsored entities & agencies | Recurring | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Securities available-for-sale | 0 | |
State and political subdivision | ||
Financial assets: | ||
Securities available-for-sale | 75,146 | 53,224 |
State and political subdivision | Recurring | ||
Financial assets: | ||
Securities available-for-sale | 75,146 | 53,224 |
State and political subdivision | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Securities available-for-sale | 0 | 0 |
State and political subdivision | Recurring | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Securities available-for-sale | 75,146 | 53,224 |
State and political subdivision | Recurring | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Securities available-for-sale | 0 | 0 |
Mortgage-backed securities: residential | ||
Financial assets: | ||
Securities available-for-sale | 9,739 | 8,431 |
Mortgage-backed securities: residential | Recurring | ||
Financial assets: | ||
Securities available-for-sale | 9,739 | 8,431 |
Mortgage-backed securities: residential | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Securities available-for-sale | 0 | 0 |
Mortgage-backed securities: residential | Recurring | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Securities available-for-sale | 9,739 | 8,431 |
Mortgage-backed securities: residential | Recurring | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Securities available-for-sale | 0 | 0 |
Mortgage-backed securities: commercial | ||
Financial assets: | ||
Securities available-for-sale | 12,382 | 9,819 |
Mortgage-backed securities: commercial | Recurring | ||
Financial assets: | ||
Securities available-for-sale | 12,382 | 9,819 |
Mortgage-backed securities: commercial | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Securities available-for-sale | 0 | 0 |
Mortgage-backed securities: commercial | Recurring | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Securities available-for-sale | 12,382 | 9,819 |
Mortgage-backed securities: commercial | Recurring | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Securities available-for-sale | 0 | 0 |
Collateralized mortgage obligations: residential | ||
Financial assets: | ||
Securities available-for-sale | 18,671 | 19,221 |
Collateralized mortgage obligations: residential | Recurring | ||
Financial assets: | ||
Securities available-for-sale | 18,671 | 19,221 |
Collateralized mortgage obligations: residential | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Securities available-for-sale | 0 | 0 |
Collateralized mortgage obligations: residential | Recurring | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Securities available-for-sale | 18,671 | 19,221 |
Collateralized mortgage obligations: residential | Recurring | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Securities available-for-sale | 0 | 0 |
Collateralized mortgage obligations: commercial | ||
Financial assets: | ||
Securities available-for-sale | 31,988 | 20,557 |
Collateralized mortgage obligations: commercial | Recurring | ||
Financial assets: | ||
Securities available-for-sale | 31,988 | 20,557 |
Collateralized mortgage obligations: commercial | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Securities available-for-sale | 0 | 0 |
Collateralized mortgage obligations: commercial | Recurring | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Securities available-for-sale | 31,988 | 20,557 |
Collateralized mortgage obligations: commercial | Recurring | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Securities available-for-sale | 0 | 0 |
U.S. Treasury | ||
Financial assets: | ||
Securities available-for-sale | 20,481 | 23,573 |
U.S. Treasury | Recurring | ||
Financial assets: | ||
Securities available-for-sale | 20,481 | 23,573 |
U.S. Treasury | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Securities available-for-sale | 0 | 0 |
U.S. Treasury | Recurring | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Securities available-for-sale | 20,481 | 23,573 |
U.S. Treasury | Recurring | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Securities available-for-sale | 0 | 0 |
SBA | ||
Financial assets: | ||
Securities available-for-sale | 15,688 | 12,616 |
SBA | Recurring | ||
Financial assets: | ||
Securities available-for-sale | 15,688 | 12,616 |
SBA | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Securities available-for-sale | 0 | 0 |
SBA | Recurring | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Securities available-for-sale | 15,688 | 12,616 |
SBA | Recurring | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Securities available-for-sale | 0 | 0 |
Asset backed securities | ||
Financial assets: | ||
Securities available-for-sale | 3,842 | |
Asset backed securities | Recurring | ||
Financial assets: | ||
Securities available-for-sale | 3,842 | |
Asset backed securities | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Securities available-for-sale | 0 | |
Asset backed securities | Recurring | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Securities available-for-sale | 3,842 | |
Asset backed securities | Recurring | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Securities available-for-sale | 0 | |
Corporate bonds | ||
Financial assets: | ||
Securities available-for-sale | 13,924 | 3,528 |
Corporate bonds | Recurring | ||
Financial assets: | ||
Securities available-for-sale | 13,924 | 3,528 |
Corporate bonds | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Securities available-for-sale | 0 | 0 |
Corporate bonds | Recurring | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Securities available-for-sale | 13,924 | 3,528 |
Corporate bonds | Recurring | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Securities available-for-sale | $ 0 | $ 0 |
Fair Value (Level 3 Assets Roll
Fair Value (Level 3 Assets Rollforward) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Beginning balance | $ 4,291 | $ 3,287 |
Transfers from loans held for sale | 544 | 1,587 |
Gains (losses): | ||
Recorded in Mortgage banking activities | (108) | 77 |
Repayments | (156) | (660) |
Ending balance | $ 4,571 | $ 4,291 |
Fair Value (Contractual Obligat
Fair Value (Contractual Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value Disclosures [Abstract] | ||
Aggregate fair value | $ 5,595 | $ 4,548 |
Loans held for sale, contractual balance | 5,512 | 4,466 |
Loans held for sale, unrealized gain | $ 83 | $ 82 |
Fair Value (Total Amount of Gai
Fair Value (Total Amount of Gains (Losses) from Changes in Fair Value of Loans Held For Sale) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |||
Total amount of gains (losses) from changes in fair value of loans held for sale | $ 1 | $ (172) | $ 167 |
Fair Value (Assets Measured at
Fair Value (Assets Measured at Fair Value on a Non-Recurring Basis) (Details) - Non-recurring - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired other asset, building and furniture held-for-sale | $ 10,000 | $ 140,000 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 652,000 | |
Contractual balance | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | |
Other real estate owned | 0 | 652,000 |
Interest rate lock commitments | 1,654,000 | |
Total assets at fair value | 3,337,000 | 2,306,000 |
Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 0 | |
Interest rate lock commitments | 0 | |
Total assets at fair value | 0 | 0 |
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 0 | |
Interest rate lock commitments | 0 | |
Total assets at fair value | 0 | 0 |
Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 652,000 | |
Interest rate lock commitments | 1,654,000 | |
Total assets at fair value | 3,337,000 | $ 2,306,000 |
Commercial and industrial | Contractual balance | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 3,337,000 | |
Commercial and industrial | Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | |
Commercial and industrial | Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | |
Commercial and industrial | Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 3,337,000 |
Fair Value (Additional Informat
Fair Value (Additional Information) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impaired loans, allowance allocation recorded | $ 11,566,000 | $ 11,713,000 | $ 11,089,000 | $ 7,890,000 |
Chargeoffs to impaired loans | 559,000 | 792,000 | 726,000 | |
Write downs in other real estate owned | 0 | |||
Contractual balance | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impaired loans, allowance allocation recorded | 278,000 | |||
Chargeoffs to impaired loans | 0 | |||
Contractual balance | Non-recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impaired loans | 0 | |||
Other real estate owned | 0 | 652,000 | ||
Commercial and industrial | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impaired loans, allowance allocation recorded | 5,174,000 | 5,903,000 | 5,932,000 | $ 3,256,000 |
Chargeoffs to impaired loans | 460,000 | $ 507,000 | $ 771,000 | |
Commercial and industrial | Contractual balance | Non-recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impaired loans | $ 3,337,000 |
Fair Value (Quantitative Inform
Fair Value (Quantitative Information About Significant Unobservable Inputs for Assets Measured at Fair Value on a Nonrecurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans | $ 24,761 | $ 22,686 |
Other assets | 12,333 | 12,467 |
Non-recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans | $ 3,337 | |
Other real estate owned | 652 | |
Other assets | $ 1,654 | |
Minimum | Non-recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, measurement input | 17.00% | |
Other asset, measurement input | 0.00% | |
Other real estate owned, measurement input | 0.00% | |
Maximum | Non-recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, measurement input | 50.00% | |
Other asset, measurement input | 10.00% | |
Other real estate owned, measurement input | 5.00% |
Fair Value (Fair Value Measur_2
Fair Value (Fair Value Measurement of Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Contractual balance | ||
Financial assets: | ||
Cash and cash equivalents | $ 33,296 | $ 63,661 |
Federal Home Loan Bank stock | 8,325 | 8,303 |
Net loans | 1,114,999 | 1,023,210 |
Accrued interest receivable | 4,207 | 3,730 |
Financial liabilities: | ||
Deposits | 1,134,635 | 1,120,382 |
Borrowings | 99,574 | 47,833 |
Subordinated notes | 14,891 | 14,844 |
Accrued interest payable | 1,674 | 908 |
Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Cash and cash equivalents | 27,072 | 17,712 |
Net loans | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Borrowings | 0 | 0 |
Subordinated notes | 0 | 0 |
Accrued interest payable | 0 | 0 |
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Cash and cash equivalents | 6,224 | 45,949 |
Net loans | 0 | 0 |
Accrued interest receivable | 1,210 | 807 |
Financial liabilities: | ||
Deposits | 1,137,575 | 1,122,473 |
Borrowings | 100,602 | 47,473 |
Subordinated notes | 15,450 | 14,993 |
Accrued interest payable | 1,674 | 908 |
Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Net loans | 1,113,648 | 1,025,319 |
Accrued interest receivable | 2,997 | 2,923 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Borrowings | 0 | 0 |
Subordinated notes | 0 | 0 |
Accrued interest payable | $ 0 | $ 0 |
Derivatives (Notional Amount an
Derivatives (Notional Amount and Fair Value of Derivative Instruments) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Other Assets | |
Notional Amount | |
Derivative asset | $ 59,349 |
Fair Value | |
Derivative asset | 1,346 |
Other Liabilities | |
Notional Amount | |
Derivative liability | 46,928 |
Fair Value | |
Derivative liability | 1,169 |
Customer-initiated derivatives | |
Fair Value | |
Derivative asset | 1,126 |
Derivative liability | 1,126 |
Customer-initiated derivatives | Designated as Hedging Instrument | Other Assets | |
Notional Amount | |
Derivative asset | 35,733 |
Fair Value | |
Derivative asset | 1,126 |
Customer-initiated derivatives | Designated as Hedging Instrument | Other Liabilities | |
Notional Amount | |
Derivative liability | 35,733 |
Fair Value | |
Derivative liability | 1,126 |
Forward contracts related to mortgage loans to be delivered for sale | Not Designated as Hedging Instrument | Other Assets | |
Notional Amount | |
Derivative asset | 5,241 |
Fair Value | |
Derivative asset | 22 |
Forward contracts related to mortgage loans to be delivered for sale | Not Designated as Hedging Instrument | Other Liabilities | |
Notional Amount | |
Derivative liability | 11,195 |
Fair Value | |
Derivative liability | 43 |
Interest rate lock commitments | Not Designated as Hedging Instrument | Other Assets | |
Notional Amount | |
Derivative asset | 18,375 |
Fair Value | |
Derivative asset | $ 198 |
Derivatives (Gains (Losses) Rel
Derivatives (Gains (Losses) Related to Derivative Instruments) (Details) - Mortgage Banking Activities - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) recognized in income | $ 73 | $ (134) | $ 76 |
Forward contracts related to mortgage loans to be delivered for sale | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) recognized in income | (69) | (106) | 99 |
Interest rate lock commitments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gain (loss) recognized in income | $ 142 | $ (28) | $ (23) |
Derivatives (Financial Instrume
Derivatives (Financial Instruments Eligible for Offset) (Details) - Customer-initiated derivatives $ in Thousands | Dec. 31, 2018USD ($) |
Offsetting derivative assets: | |
Gross amounts recognized | $ 1,126 |
Gross amounts offset in the statements of financial condition | 0 |
Net amounts presented in the statements of financial condition | 1,126 |
Gross amounts not offset in the statements of financial position | |
Financial instruments | 0 |
Collateral (received)/posted | 0 |
Net amount | 1,126 |
Offsetting derivative liabilities: | |
Gross amounts recognized | 1,126 |
Gross amounts offset in the statements of financial condition | 0 |
Net amounts presented in the statements of financial condition | 1,126 |
Gross amounts not offset in the statements of financial position | |
Financial instruments | 0 |
Collateral (received)/posted | 1,020 |
Net amount | $ 106 |
Parent Company Financial Stat_3
Parent Company Financial Statements (Balance Sheets - Parent Company) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||||
Cash and cash equivalents | $ 33,296 | $ 63,661 | $ 19,116 | $ 16,036 |
Income tax benefit | 2,467 | 3,102 | ||
Other assets | 12,333 | 12,467 | ||
Total assets | 1,416,215 | 1,301,291 | ||
Liabilities | ||||
Subordinated notes | 14,891 | 14,844 | ||
Total liabilities | 1,264,455 | 1,193,331 | ||
Shareholders' equity | 151,760 | 107,960 | 96,571 | 85,634 |
Total liabilities and shareholders' equity | 1,416,215 | 1,301,291 | ||
Parent Company | ||||
Assets | ||||
Cash and cash equivalents | 9,690 | 1,158 | $ 539 | $ 3,992 |
Investment in banking subsidiary | 155,248 | 120,829 | ||
Investment in captive insurance subsidiary | 1,622 | 663 | ||
Income tax benefit | 393 | 339 | ||
Other assets | 21 | 30 | ||
Total assets | 166,974 | 123,019 | ||
Liabilities | ||||
Subordinated notes | 14,891 | 14,844 | ||
Accrued expenses and other liabilities | 323 | 215 | ||
Total liabilities | 15,214 | 15,059 | ||
Shareholders' equity | 107,960 | |||
Total liabilities and shareholders' equity | $ 166,974 | $ 123,019 |
Parent Company Financial Stat_4
Parent Company Financial Statements (Statements of Income and Comprehensive Income - Parent Company) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Expenses | |||||||||||
Subordinated notes | $ 1,015 | $ 1,014 | $ 1,015 | ||||||||
Income tax benefit | $ (836) | $ (665) | $ (860) | $ (642) | $ (2,317) | $ (1,259) | $ (1,650) | $ (1,497) | (3,003) | (6,723) | (6,100) |
Net income | $ 3,951 | $ 3,255 | $ 4,012 | $ 3,168 | $ 933 | $ 2,835 | $ 3,321 | $ 2,752 | 14,386 | 9,841 | 11,046 |
Other comprehensive income (loss) | (801) | 343 | (775) | ||||||||
Total comprehensive income, net of tax | 13,585 | 10,184 | 10,271 | ||||||||
Parent Company | |||||||||||
Income | |||||||||||
Dividend income from banking subsidiary | 0 | 0 | 14,000 | ||||||||
Total income | 0 | 0 | 14,000 | ||||||||
Expenses | |||||||||||
Subordinated notes | 1,015 | 1,015 | 1,015 | ||||||||
Other expenses | 715 | 1,222 | 352 | ||||||||
Total expenses | 1,730 | 2,237 | 1,367 | ||||||||
(Loss) income before income taxes and equity in undistributed net earnings of subsidiaries | (1,730) | (2,237) | 12,633 | ||||||||
Income tax benefit | 425 | 686 | 478 | ||||||||
Equity in undistributed earnings of subsidiaries | 15,691 | 11,392 | (2,065) | ||||||||
Net income | 14,386 | 9,841 | 11,046 | ||||||||
Other comprehensive income (loss) | (801) | 343 | (775) | ||||||||
Total comprehensive income, net of tax | $ 13,585 | $ 10,184 | $ 10,271 |
Parent Company Financial Stat_5
Parent Company Financial Statements (Statements of Cash Flows - Parent Company) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities | |||||||||||
Net income | $ 3,951 | $ 3,255 | $ 4,012 | $ 3,168 | $ 933 | $ 2,835 | $ 3,321 | $ 2,752 | $ 14,386 | $ 9,841 | $ 11,046 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Stock-based compensation expense | 815 | 613 | 366 | ||||||||
Net cash provided by operating activities | 18,137 | 12,162 | 203 | ||||||||
Cash flows from investing activities | |||||||||||
Net cash from acquisition | 0 | 0 | 2,458 | ||||||||
Net cash used in investing activities | (144,129) | (128,855) | (83,728) | ||||||||
Cash flows from financing activities | |||||||||||
Net proceeds from issuance of common stock related to initial public offering | 29,030 | 0 | 0 | ||||||||
Common stock dividend paid | (662) | 0 | 0 | ||||||||
Proceeds from exercised stock options | 1,279 | 605 | 300 | ||||||||
Net cash provided by financing activities | 95,627 | 161,238 | 86,605 | ||||||||
Net change in cash and cash equivalents | (30,365) | 44,545 | 3,080 | ||||||||
Beginning cash and cash equivalents | 63,661 | 19,116 | 63,661 | 19,116 | 16,036 | ||||||
Ending cash and cash equivalents | 33,296 | 63,661 | 33,296 | 63,661 | 19,116 | ||||||
Parent Company | |||||||||||
Cash flows from operating activities | |||||||||||
Net income | 14,386 | 9,841 | 11,046 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Equity in undistributed earnings of subsidiaries | (15,691) | (11,392) | 2,065 | ||||||||
Stock-based compensation expense | 314 | 329 | 139 | ||||||||
(Increase) decrease in other assets, net | (45) | 1,271 | (480) | ||||||||
Increase (decrease) in other liabilities, net | (79) | 215 | (5) | ||||||||
Net cash provided by operating activities | (1,115) | 264 | 12,765 | ||||||||
Cash flows from investing activities | |||||||||||
Net cash from acquisition | 0 | 0 | (16,518) | ||||||||
Capital contributions to captive subsidiary | 0 | (250) | 0 | ||||||||
Capital infusion to subsidiaries | (20,000) | 0 | 0 | ||||||||
Net cash used in investing activities | (20,000) | (250) | (16,518) | ||||||||
Cash flows from financing activities | |||||||||||
Net proceeds from issuance of common stock related to initial public offering | 29,030 | 0 | 0 | ||||||||
Common stock dividend paid | (662) | 0 | 0 | ||||||||
Proceeds from exercised stock options | 1,279 | 605 | 300 | ||||||||
Net cash provided by financing activities | 29,647 | 605 | 300 | ||||||||
Net change in cash and cash equivalents | 8,532 | 619 | (3,453) | ||||||||
Beginning cash and cash equivalents | $ 1,158 | $ 539 | 1,158 | 539 | 3,992 | ||||||
Ending cash and cash equivalents | $ 9,690 | $ 1,158 | $ 9,690 | $ 1,158 | $ 539 |
Earnings Per Share (Calculation
Earnings Per Share (Calculation of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Basic: | |||||||||||
Net Income attributable to common shareholders | $ 3,951 | $ 3,255 | $ 4,012 | $ 3,168 | $ 933 | $ 2,835 | $ 3,321 | $ 2,752 | $ 14,386 | $ 9,841 | $ 11,046 |
Weighted average common shares outstanding (in shares) | 7,376,507 | 6,388,328 | 6,340,814 | ||||||||
Basic earnings per share (in dollars per share) | $ 0.51 | $ 0.42 | $ 0.54 | $ 0.48 | $ 0.15 | $ 0.44 | $ 0.52 | $ 0.43 | $ 1.95 | $ 1.54 | $ 1.74 |
Diluted: | |||||||||||
Net Income attributable to common shareholders | $ 3,951 | $ 3,255 | $ 4,012 | $ 3,168 | $ 933 | $ 2,835 | $ 3,321 | $ 2,752 | $ 14,386 | $ 9,841 | $ 11,046 |
Weighted average common shares outstanding (in shares) | 7,376,507 | 6,388,328 | 6,340,814 | ||||||||
Add: Dilutive effects of assumed exercises of stock options (in shares) | 147,411 | 221,668 | 208,608 | ||||||||
Weighted average common and dilutive potential common shares outstanding (in shares) | 7,523,918 | 6,609,996 | 6,549,422 | ||||||||
Diluted earnings per common share (in dollars per share) | $ 0.50 | $ 0.41 | $ 0.53 | $ 0.47 | $ 0.14 | $ 0.43 | $ 0.50 | $ 0.42 | $ 1.91 | $ 1.49 | $ 1.69 |
Earnings Per Share (Additional
Earnings Per Share (Additional Information) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stock Options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive shares excluded from diluted earnings per share calculation (in shares) | 26,301 | 0 | 64,230 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Additional Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 20, 2018 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Interest income | $ 17,041 | $ 16,629 | $ 15,380 | $ 14,774 | $ 14,374 | $ 13,752 | $ 14,034 | $ 13,447 | $ 63,824 | $ 55,607 | $ 52,903 | |
Interest expense | 4,228 | 3,560 | 2,965 | 2,647 | 2,373 | 2,074 | 1,928 | 1,703 | 13,400 | 8,078 | 5,832 | |
Net interest income | 12,813 | 13,069 | 12,415 | 12,127 | 12,001 | 11,678 | 12,106 | 11,744 | 50,424 | 47,529 | 47,071 | |
Provision expense for loan losses | (51) | 619 | (710) | 554 | 956 | 194 | 68 | 198 | 412 | 1,416 | 3,925 | |
Net interest income after provision for loan losses | 12,864 | 12,450 | 13,125 | 11,573 | 11,045 | 11,484 | 12,038 | 11,546 | 50,012 | 46,113 | 43,146 | |
Noninterest income | 2,307 | 1,924 | 1,452 | 1,372 | 1,397 | 1,941 | 1,784 | 1,380 | 7,055 | 6,502 | 6,407 | |
Noninterest expense | 10,384 | 10,454 | 9,705 | 9,135 | 9,192 | 9,331 | 8,851 | 8,677 | 39,678 | 36,051 | 32,407 | |
Income before income taxes | 4,787 | 3,920 | 4,872 | 3,810 | 3,250 | 4,094 | 4,971 | 4,249 | 17,389 | 16,564 | 17,146 | |
Income tax provision | 836 | 665 | 860 | 642 | 2,317 | 1,259 | 1,650 | 1,497 | 3,003 | 6,723 | 6,100 | |
Net income | $ 3,951 | $ 3,255 | $ 4,012 | $ 3,168 | $ 933 | $ 2,835 | $ 3,321 | $ 2,752 | $ 14,386 | $ 9,841 | $ 11,046 | |
Earnings per common share: | ||||||||||||
Basic (in dollars per share) | $ 0.51 | $ 0.42 | $ 0.54 | $ 0.48 | $ 0.15 | $ 0.44 | $ 0.52 | $ 0.43 | $ 1.95 | $ 1.54 | $ 1.74 | |
Diluted (in dollars per share) | 0.50 | 0.41 | 0.53 | 0.47 | $ 0.14 | $ 0.43 | $ 0.50 | $ 0.42 | 1.91 | 1.49 | 1.69 | |
Cash dividends declared per common share (in dollars per share) | $ 0.03 | $ 0.03 | $ 0.03 | $ 0.03 | $ 0.03 | $ 0.12 | $ 0 | $ 0 |
Subsequent Events (Additional I
Subsequent Events (Additional Information) (Details) - USD ($) | Mar. 21, 2019 | Dec. 20, 2018 | Mar. 15, 2019 | Mar. 20, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 23, 2019 |
Subsequent Event [Line Items] | ||||||||||||
Cash dividend declared (in dollars per share) | $ 0.03 | $ 0.03 | $ 0.03 | $ 0.03 | $ 0.03 | $ 0.12 | $ 0 | $ 0 | ||||
Subsequent Event | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Repurchase program, authorized amount | $ 5,000,000 | |||||||||||
Number of shares repurchased (in shares) | 46,626 | |||||||||||
Average price per share of shares repurchased (in dollars per share) | $ 23.67 | |||||||||||
Shares repurchased, amount | $ 1,100,000 | |||||||||||
Cash dividend declared (in dollars per share) | $ 0.0004 | |||||||||||
Increase to cash dividend declared (in dollars per share) | $ 0.01 |