Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 19, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | 1st Century Bancshares, Inc. | ||
Trading Symbol | fcty | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 10,336,884 | ||
Entity Public Float | $ 55,900,000 | ||
Amendment Flag | false | ||
Entity Central Index Key | 1,420,525 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and due from banks | $ 8,889 | $ 7,484 |
Interest-earning deposits at other financial institutions | 45,676 | 50,980 |
Total cash and cash equivalents | 54,565 | 58,464 |
Investment securities — Available for Sale (“AFS”), at estimated fair value | 74,010 | 79,689 |
Loans, net of allowance for loan losses of $8,961 and $7,599 at December 31, 2015 and 2014, respectively | 589,472 | 435,257 |
Premises and equipment, net | 1,627 | 1,460 |
Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) stock | 4,915 | 4,822 |
Accrued interest and other assets | 7,361 | 5,526 |
Total Assets | 731,950 | 585,218 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Non-interest bearing demand deposits | 362,451 | 282,217 |
Interest bearing deposits: | ||
Interest bearing checking (“NOW”) | 32,406 | 25,492 |
Money market deposits and savings | 155,572 | 154,706 |
Certificates of deposit less than $250 | 1,243 | 2,185 |
Certificates of deposit of $250 or greater | 46,505 | 38,572 |
Total deposits | 598,177 | 503,172 |
Other borrowings | 65,000 | 17,500 |
Accrued interest and other liabilities | 3,870 | 2,853 |
Total Liabilities | $ 667,047 | $ 523,525 |
Commitments and contingencies (Note 10) | ||
Stockholders’ Equity: | ||
Preferred stock, $0.01 par value — 10,000,000 shares authorized, none issued and outstanding at December 31, 2015 and 2014, respectively | ||
Common stock, $0.01 par value — 50,000,000 shares authorized, 12,655,633 and 12,129,310 issued at December 31, 2015 and 2014, respectively | $ 127 | $ 121 |
Additional paid-in capital | 75,396 | 71,736 |
Retained earnings (accumulated deficit) | 878 | (1,675) |
Accumulated other comprehensive income | 11 | 162 |
Treasury stock at cost — 2,336,749 and 1,988,869 shares at December 31, 2015 and 2014, respectively | (11,509) | (8,651) |
Total Stockholders’ Equity | 64,903 | 61,693 |
Total Liabilities and Stockholders’ Equity | $ 731,950 | $ 585,218 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Allowance for loan losses (in Dollars) | $ 8,961 | $ 7,599 |
Preferred stock, par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 12,655,633 | 12,129,310 |
Treasury stock, shares | 2,336,749 | 1,988,869 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Interest and fee income on: | ||
Loans | $ 21,695 | $ 16,998 |
Investments | 1,296 | 1,729 |
Other | 651 | 488 |
Total interest and fee income | 23,642 | 19,215 |
Interest expense on: | ||
Deposits | 482 | 442 |
Borrowings | 218 | 314 |
Total interest expense | 700 | 756 |
Net interest income | 22,942 | 18,459 |
Provision for loan losses | 1,325 | 100 |
Net interest income after provision for loan losses | 21,617 | 18,359 |
Non-interest income: | ||
Gain on sale of AFS investment securities | 75 | 1,178 |
Other operating income | 593 | 533 |
Total non-interest income | 668 | 1,711 |
Non-interest expenses: | ||
Compensation and benefits | 10,333 | 9,202 |
Occupancy | 1,911 | 1,699 |
Professional fees | 839 | 734 |
Technology | 995 | 836 |
Marketing | 474 | 427 |
FDIC assessments | 400 | 373 |
Other operating expenses | 2,832 | 2,535 |
Total non-interest expenses | 17,784 | 15,806 |
Income before income taxes | 4,501 | 4,264 |
Income tax provision | 1,948 | 1,903 |
Net income | 2,553 | 2,361 |
Other Comprehensive Income: | ||
Net change in unrealized gains (losses) on AFS investments, net of tax | (151) | 110 |
Comprehensive Income | $ 2,402 | $ 2,471 |
Basic earnings per share (in Dollars per share) | $ 0.27 | $ 0.25 |
Diluted earnings per share (in Dollars per share) | $ 0.26 | $ 0.24 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders’ Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Treasury Stock [Member] | Total |
Balance at December 31, 2013 at Dec. 31, 2013 | $ 114 | $ 67,231 | $ (4,036) | $ 52 | $ (7,973) | $ 55,388 |
Balance at December 31, 2013 (in Shares) at Dec. 31, 2013 | 11,378,710 | (1,897,902) | ||||
Restricted stock issued | $ 2 | (2) | ||||
Restricted stock issued (in Shares) | 228,000 | |||||
Exercise of stock options | $ 5 | 2,638 | 2,643 | |||
Exercise of stock options (in Shares) | 522,600 | |||||
Earned restricted stock compensation, net of estimated forfeitures | 879 | 879 | ||||
Excess tax benefit from stock based compensation | 990 | 990 | ||||
Shares surrendered to pay taxes on stock based compensation | $ (678) | (678) | ||||
Shares surrendered to pay taxes on stock based compensation (in Shares) | (90,967) | |||||
Net income | 2,361 | 2,361 | ||||
Other comprehensive income (loss) | 110 | 110 | ||||
Balance, at Dec. 31, 2014 | $ 121 | 71,736 | (1,675) | 162 | $ (8,651) | 61,693 |
Balance, (in Shares) at Dec. 31, 2014 | 12,129,310 | (1,988,869) | ||||
Restricted stock issued | $ 3 | (3) | ||||
Restricted stock issued (in Shares) | 218,750 | |||||
Exercise of stock options | $ 3 | 2,461 | 2,464 | |||
Exercise of stock options (in Shares) | 307,573 | |||||
Earned restricted stock compensation, net of estimated forfeitures | 994 | 994 | ||||
Excess tax benefit from stock based compensation | 208 | 208 | ||||
Shares surrendered to pay taxes on stock based compensation | $ (2,858) | (2,858) | ||||
Shares surrendered to pay taxes on stock based compensation (in Shares) | (347,880) | |||||
Net income | 2,553 | 2,553 | ||||
Other comprehensive income (loss) | (151) | (151) | ||||
Balance, at Dec. 31, 2015 | $ 127 | $ 75,396 | $ 878 | $ 11 | $ (11,509) | $ 64,903 |
Balance, (in Shares) at Dec. 31, 2015 | 12,655,633 | (2,336,749) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 2,553,000 | $ 2,361,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of premises and equipment | 577,000 | 491,000 |
Amortization of premiums on investment securities, net | 599,000 | 812,000 |
Provision for loan losses | 1,325,000 | 100,000 |
Deferred income tax (benefit) expense | (1,473,000) | 67,000 |
Amortization (accretion) of deferred loan fees and costs, net | 13,000 | (15,000) |
Gain on sale of AFS investment securities | (75,000) | (1,178,000) |
Non-cash stock compensation, net of forfeitures | 994,000 | 879,000 |
Excess tax benefit related to stock option exercises and vesting of restricted stock | (208,000) | (990,000) |
Gain on sale of OREO | (47,000) | |
(Increase) decrease in accrued interest and other assets | (48,000) | 186,000 |
Increase in accrued interest and other liabilities | 1,017,000 | 362,000 |
Net cash provided by operating activities | 5,274,000 | 3,028,000 |
Activities in AFS investment securities: | ||
Purchases | (14,374,000) | (50,284,000) |
Maturities and principal reductions | 13,289,000 | 16,325,000 |
Proceeds from sale of securities | 5,983,000 | 61,095,000 |
Increase in loans, net | (155,553,000) | (59,030,000) |
Proceeds from sale of OREO | 137,000 | |
Purchase of premises and equipment | (744,000) | (666,000) |
Purchase of FRB stock and FHLB stock | (93,000) | (190,000) |
Net cash used in investing activities | (151,492,000) | (32,613,000) |
Cash flows from financing activities: | ||
Net increase in deposits | 95,005,000 | 50,406,000 |
Proceeds from other short-term borrowings | 50,000,000 | |
Repayment of other long-term borrowings | (2,500,000) | (10,000,000) |
Proceeds from exercise of stock options | 2,464,000 | 2,643,000 |
Excess tax benefit related to stock option exercises and vesting of restricted stock | 208,000 | 990,000 |
Shares surrendered to pay taxes on vesting of stock based compensation | (2,858,000) | (678,000) |
Net cash provided by financing activities | 142,319,000 | 43,361,000 |
(Decrease) increase in cash and cash equivalents | (3,899,000) | 13,776,000 |
Cash and cash equivalents, beginning of year | 58,464,000 | 44,688,000 |
Cash and cash equivalents, end of year | 54,565,000 | 58,464,000 |
Cash paid during the year for: | ||
Interest | 700,000 | 761,000 |
Income taxes | $ 2,509,000 | $ 1,033,000 |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | (1) Summary of Significant Accounting Policies Nature of Operations 1 st st Basis of Presentation The consolidated financial statements include the accounts of Bancshares and the Bank. All inter-company accounts and transactions have been eliminated in consolidation. Certain items in the 2014 consolidated financial statements have been reclassified to conform to the 2015 presentation. Reclassifications had no effect on prior year net income or shareholders’ equity. The Company’s accounting and reporting policies conform to U.S. generally accepted accounting principles (“GAAP”) and to general practices within the banking industry. A summary of the significant accounting and reporting policies consistently applied in the preparation of the accompanying consolidated financial statements follows: Use of Estimates Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Certain assumptions and estimates could prove to be incorrect and cause actual results to differ materially and adversely from the amounts reported in the consolidated financial statements included herewith. Cash and Cash Equivalents Cash and cash equivalents include cash and due from banks, interest earning deposits at other financial institutions with original maturities less than 90 days and all highly liquid investments with original maturities of less than 90 days. Cash Flows Cash and cash equivalents include cash, deposits with other financial institutions with maturities fewer than 90 days, and federal funds sold. Net cash flows are reported for loan and deposit transactions, interest bearing deposits in other financial institutions and short-term borrowings. Investment Securities Investment Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Declines in the fair value of investment securities below their cost that are deemed to be other-than-temporary are reflected in earnings as realized losses to the extent the impairment is related to credit losses. The amount of the impairment related to other factors is recognized in other comprehensive income provided that management does not have the intent to sell the securities and it is more likely than not that management will not have to sell the security before recovery of its cost basis. In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Federal Reserve Bank Stock and Federal Home Loan Bank Stock The Bank is a member of the Federal Reserve System (“Fed” or “FRB”). FRB stock is carried at cost and is considered a nonmarketable equity security. Cash dividends from the FRB are reported as interest income on an accrual basis. The Bank is a member and stockholder of the capital stock of the Federal Home Loan Bank of San Francisco (“FHLB of San Francisco” or “FHLB”). 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 of San Francisco stock is carried at cost and is considered a nonmarketable equity security. Both cash and stock dividends are reported as interest income. Loans Loans, net, are stated at the unpaid principal balances less the allowance for loan losses and unamortized deferred fees and costs. Loan origination fees, net of related direct costs, are deferred and accreted to interest income as an adjustment to yield over the respective maturities of the loans using the effective interest method. Interest on loans is accrued as earned on a daily basis, except where reasonable doubt exists as to the collection of interest and principal, in which case the accrual of interest is discontinued and the loan is placed on non-accrual status. Loans are placed on non-accrual at the time principal or interest is 90 days delinquent unless well secured and in the process of collection. Interest on non-accrual loans is accounted for on a cash-basis or cost-recovery method, until qualifying for return to accrual status. In order for a loan to return to accrual status, all principal and interest amounts owed must be brought current and future payments must be reasonably assured. A loan is charged-off at any time the loan is determined to be uncollectible. Collateral dependent loans, which generally include commercial real estate loans, residential loans, and construction and land loans, are typically charged down to their fair value of collateral less selling costs when a loan is impaired or on non-accrual status. All other loans are typically charged-off when, based upon current available facts and circumstances, it’s determined that either: (1) a loan is uncollectible, (2) repayment is determined to be protracted beyond a reasonable time frame, or (3) the loan is classified as a loss determined by either the Bank’s internal review process or by external examiners. Loans are considered impaired when, based upon current information and events, it is probable that the Company will be unable to collect all principal and interest amounts due according to the original contractual terms of the loan agreement on a timely basis. The Company evaluates impairment on a loan-by-loan basis. Once a loan is determined to be impaired, the impairment is measured based on the present value of the expected future cash flows discounted at the loan’s effective interest rate or by using the loan’s most recent market value or the fair value of the collateral if the loan is collateral dependent. Loans that experience insignificant payment delays or payment shortfalls are generally not considered to be impaired. When the measurement of an impaired loan is less than the recorded amount of the loan, a valuation allowance is established by recording a charge to the provision for loan losses. Subsequent increases or decreases in the valuation allowance for impaired loans are recorded by adjusting the existing valuation allowance for the impaired loan with a corresponding charge or credit to the provision for loan losses. The Company’s policy for recognizing interest income on impaired loans is the same as that for non-accrual loans. Troubled Debt Restructurings In situations where, for economic or legal reasons related to a borrower’s financial difficulties, management may grant a concession for other than an insignificant period of time to the borrower that would not otherwise be considered, the related loan is classified as a troubled debt restructuring (“TDR”). Management strives to identify borrowers in financial difficulty early and work with them to modify their loans to more affordable terms before their loan reaches nonaccrual status. Concessions may include interest rate reductions or below market interest rates, principal forgiveness, restructuring amortization schedules and other actions intended to minimize potential losses. Allowance for Loan Losses The allowance for loan losses is established through a provision for loan losses charged to operations and represents an estimate of credit losses inherent in the Company’s loan portfolio that have been incurred as of the balance sheet date. Loan losses are charged against the allowance when management believes that principal is uncollectible. Subsequent repayments or recoveries, if any, are credited to the allowance. Management periodically assesses the adequacy of the allowance for loan losses by reference to many quantitative and qualitative factors that may be weighted differently at various times depending on prevailing conditions. The provisions reflect management’s evaluation of the adequacy of the allowance based, in part, upon the historical loss experience of the loan portfolio, as well as estimates from historical peer group loan loss data and the loss experience of other financial institutions, augmented by management judgment. During this process, loans are separated into the following portfolio segments: commercial loans, commercial real estate, residential, land and construction, and consumer and other loans. The relative significance of risk considerations vary by portfolio segment. For commercial loans, commercial real estate loans and land and construction, the primary risk consideration is a borrower’s ability to generate sufficient cash flows to repay their loan. Secondary considerations include the creditworthiness of guarantors and the valuation of collateral. In addition to the creditworthiness of a borrower, the type and location of real estate collateral is an important risk factor for commercial real estate and land and construction loans. The primary risk consideration for residential loans and consumer loans are a borrower’s personal cash flow and liquidity, as well as collateral value. Loss ratios for all portfolio segments are evaluated on a quarterly basis. Loss ratios associated with historical loss experience are determined based on a rolling migration analysis of each portfolio segment within the portfolio. This migration analysis estimates loss factors based on the performance of each portfolio segment over a four and a half year time period. These loss ratios are then adjusted, if determined necessary, based on other factors including, but not limited to, historical peer group loan loss data and the loss experience of other financial institutions. Management carefully monitors changing economic conditions, the concentrations of loan categories, values of collateral, the financial condition of the borrowers, the history of the loan portfolio, and historical peer group loan loss data to determine the adequacy of the allowance for loan losses. As a part of this process, management typically focuses on loan-to-value (“LTV”) percentages to assess the adequacy of loss ratios of collateral dependent loans within each portfolio segment discussed above, trends within each portfolio segment, as well as general economic and real estate market conditions where the collateral and borrower are located. For loans that are not collateral dependent, which generally consist of commercial and consumer and other loans, management typically focuses on general business conditions where the borrower operates, trends within the portfolio, and other external factors to evaluate the severity of loss factors. The allowance is based on estimates and actual losses may vary from the estimates. In addition, regulatory agencies, as a part of their examination process, periodically review the Bank’s allowance for loan losses, and may require the Bank to make additions to the allowance based on their judgment about information available to them at the time of their examinations. No assurance can be given that adverse future economic conditions will not lead to increased delinquent loans, and increases in the provision for loan losses and/or charge-offs. Management believes that the allowance as of December 31, 2015 and 2014 was adequate to absorb probable incurred credit losses inherent in the loan portfolio. Other Real Estate Owned OREO represents real estate acquired through or in lieu of foreclosure. OREO is held for sale and is initially recorded at fair value less estimated costs of disposition at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of cost or estimated fair value less costs of disposition. OREO is included in accrued interest and other assets within the Consolidated Balance Sheets and the net operating results, if any, from OREO are recognized as non-interest expense within the Consolidated Statements of Operations and Comprehensive Income. Furniture, Fixtures and Equipment, net Leasehold improvements and furniture, fixtures and equipment are carried at cost, less depreciation and amortization. Furniture, fixtures and equipment are depreciated using the straight-line method over the estimated useful life of the asset (three to ten years). Leasehold improvements are depreciated using the straight-line method over the terms of the related leases or the estimated lives of the improvements, whichever is shorter. Advertising Costs Advertising costs are expensed as incurred. Income Taxes The Company files consolidated federal and combined state income tax returns. Income tax expense or benefit is the total of the current year income tax payable or refundable and the change in the deferred tax assets and liabilities (excluding deferred tax assets and liabilities related to components of other comprehensive income). Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax basis of assets and liabilities, computed using enacted tax rates. Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in the rates and laws. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. The Company records a valuation allowance if it believes, based on all available evidence, that it is “more likely than not” that the future tax assets will not be realized. This assessment requires management to evaluate the Company’s ability to generate sufficient future taxable income or use eligible tax carrybacks, if any, to determine the need for a valuation allowance. During the year ended December 31, 2009, management established a full valuation allowance against the Company’s deferred tax assets after we determined that it was “more likely than not” that the Company would not be able to realize the benefit of the deferred tax asset. During the year ended December 31, 2013, management reassessed the need for this valuation allowance and concluded that a valuation allowance was no longer appropriate and that it is more likely than not that these assets will be realized. As a result, management reversed the valuation allowance as an income tax benefit in the Consolidated Statements of Operations and Comprehensive Income. In making this determination, management analyzed, among other things, the Company’s recent history of earnings and cash flows, forecasts of future earnings, improvements in the credit quality of the Company’s loan portfolio, the nature and timing of future deductions and benefits represented by the deferred tax assets and our cumulative earnings for the 12 quarters preceding the reversal of this valuation allowance. At December 31, 2015 and 2014, the Company had a net deferred tax asset of approximately $4.6 million and $3.0 million, respectively. At December 31, 2015 and 2014, the Company did not have any tax benefits disallowed under accounting standards for uncertainties in income taxes. 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. If applicable, the Company has elected to record interest accrued and penalties related to unrecognized tax benefits in tax expense. See Note 16 “ Income Taxes Comprehensive Income Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. However, certain changes in assets and liabilities, such as unrealized gains and losses on Available for Sale securities, are reported as a separate component of the stockholders’ equity section of the Consolidated Balance Sheets and, along with net income, are components of comprehensive income. Earnings per Share The Company reports both basic and diluted earnings per share. Basic earnings per share is determined by dividing net income by the average number of shares of common stock outstanding, while diluted earnings per share is determined by dividing net income by the average number of shares of common stock outstanding adjusted for the dilutive effect of common stock equivalents. Potential dilutive common shares related to outstanding stock options and restricted stock are determined using the treasury stock method. For the years ended December 31, 2015 and 2014, there were 156,023 and 350,073, respectively, of stock options that were excluded from the diluted earnings per share calculation due to their antidilutive impact. For the years ended December 31, 2015 and 2014, there were 29,149 and 3,278 , respectively, of weighted average restricted shares that were excluded from the diluted earnings per share calculation due to their antidilutive impact. Years ended December 31, (dollars in thousands) 2015 2014 Net income $ 2,553 $ 2,361 Average number of common shares outstanding 9,602,008 9,431,727 Effect of dilution of stock options — 13,811 Effect of dilution of restricted stock 255,453 295,710 Average number of common shares outstanding used to calculate diluted earnings per common share 9,857,461 9,741,248 Fair Value of Financial Instruments The Company is required to make certain disclosures about its use of fair value measurements in the preparation of its financial statements. These standards establish a three-level hierarchy for disclosure of assets and liabilities recorded at fair value. The classification of assets and liabilities within the hierarchy is based on whether the inputs to the valuation methodology used for measurement are observable or unobservable. Observable inputs reflect market-derived or market-based information obtained from independent sources, while unobservable inputs reflect management’s estimates about market data. Level 1 Valuation is based upon quoted prices for identical instruments traded in active markets. Level 1 instruments include securities traded on active exchange markets, such as the New York Stock Exchange, as well as U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets. Level 2 Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 2 instruments include securities traded in less active dealer or broker markets. Level 3 Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. Stock-Based Compensation The Company has granted restricted stock awards to directors, employees, and a vendor under the 1st Century Bancshares 2005 Amended and Restated Equity Incentive Plan (the “Equity Incentive Plan”). The restricted stock awards are considered fixed awards as the number of shares and fair value is known at the date of grant and the fair value at the grant date is amortized over the vesting and/or service period. Recent Accounting Pronouncements In January 2014, the Financial Accounting Standard Board (FASB) issued Accounting Standard Update (ASU) No. 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40) – Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (ASU 2014-04). The amendments of ASU are intended to clarify when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan should be derecognized and the real estate recognized. This ASU is effective for both annual and interim periods beginning after December 15, 2014. The adoption of ASU 2014-04 did not have an impact on its financial statements and disclosures. In April 2014, the FASB issued ASU No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360) – Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (ASU 2014-08). The amendments in ASU 2014-08 change the criteria for reporting discontinued operations and improve related disclosures. This ASU also addresses sources of confusion and inconsistent application related to financial reporting of discontinued operations guidance. ASU 2014-08 will be effective for annual financial statements with fiscal years beginning on or after December 31, 2014 and interim periods thereafter. The adoption of ASU 2014-08 did not have an impact on its financial statements and disclosures. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40) (ASU 2014-15). The objective of ASU 2014-15 is to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and provide related disclosures. Currently, GAAP does not provide guidance to evaluate whether there is substantial doubt regarding an organization’s ability to continue as a going concern. This ASU provides guidance to an organization’s management, with principles and definitions to reduce diversity in the timing and content of financial statement disclosures commonly provided by organizations. ASU 2014-15 is effective for periods ending after December 15, 2016 and interim periods within annual periods beginning after December 15, 2016. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606) (ASU 2015-15). On May 28, 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606), with an original effective date for annual reporting periods beginning after December 15, 2016. The core principal of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2015- 15 deferred the effective date of ASU 2014-09 to annual periods and interim periods within those annual periods beginning after December 15, 2017. The Company is currently evaluating the effects of ASU 2015-14 on its financial statements and disclosures, if any. |
Note 2 - Investment Securities
Note 2 - Investment Securities | 12 Months Ended |
Dec. 31, 2015 | |
Investments Schedule [Abstract] | |
Investment [Text Block] | (2) Investment Securities The following is a summary of the investments categorized as Available for Sale at December 31, 2015 and 2014: (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value At December 31, 2015 : Investments — Available for Sale U.S. Treasuries and Government Agencies $ 34,417 $ 184 $ (2 ) $ 34,599 Residential Mortgage-Backed Securities 39,575 116 (280 ) 39,411 Total $ 73,992 $ 300 $ (282 ) $ 74,010 At December 31, 2014 : Investments — Available for Sale U.S. Treasuries and Government Agencies $ 25,973 $ 160 $ (5 ) $ 26,128 Corporate Notes 2,528 10 — 2,538 Residential Mortgage-Backed Securities 50,913 275 (165 ) 51,023 Total $ 79,414 $ 445 $ (170 ) $ 79,689 The Company did not have any investment securities categorized as “Held to Maturity” or “Trading” at December 31, 2015 or 2014. At December 31, 2015 and 2014, there were no holdings of securities of any one issuer other than the U.S. government or its agencies, in an amount greater than 10% of shareholders’ equity. Additionally, at December 31, 2015 and 2014, the carrying amount of securities pledged to the State of California Treasurer’s Office to secure their deposits was $55.9 million and $48.4 million, respectively. Deposits from the State of California were $46.0 million and $38.0 million at December 31, 2015 and 2014, respectively. The following table summarizes the fair value of AFS securities and the weighted average yield of investment securities by contractual maturity at December 31, 2015. Residential mortgage-backed securities are included in maturity categories based on their stated maturity date. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. The weighted average life of these securities was 3.36 years at December 31, 2015. (dollars in thousands) Available for Sale 1 Year or Less Weighted Average Yield After 1 Through 5 Years Weighted Average Yield After 5 Through 10 Years Weighted Average Yield After 10 Years Weighted Average Yield Total Weighted Average Yield U.S. Treasuries and Government Agencies $ — — % $ 30,293 1.86 % $ 4,306 2.08 % $ — — % $ 34,599 1.89 % Residential Mortgage- Backed Securities — — 818 3.49 18,622 1.56 19,971 1.93 39,411 1.79 Total $ — — % $ 31,111 1.90 % $ 22,928 1.66 % $ 19,971 1.93 % $ 74,010 1.83 % A total of 31 and 26 securities had unrealized losses at December 31, 2015 and 2014, respectively. Information pertaining to securities with gross unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: Less than Twelve Months Twelve Months or More (in thousands) Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value At December 31, 2015 : Investments-Available for Sale U.S. Treasuries and Government Agencies $ (2 ) $ 3,995 $ — $ — Residential Mortgage-Backed Securities (205 ) 23,942 (75 ) 4,221 At December 31, 2014 : Investments-Available for Sale U.S. Treasuries and Government Agencies $ (5 ) $ 8,057 $ — $ — Residential Mortgage-Backed Securities (35 ) 11,694 (130 ) 17,651 The Company’s assessment that it has the ability to continue to hold impaired investment securities along with its evaluation of their future performance provide the basis for it to conclude that its impaired securities are not other-than-temporarily impaired. In assessing whether it is more likely than not that the Company will be required to sell any impaired security before its anticipated recovery, which may be at their maturity, it considers the significance of each investment, the amount of impairment, as well as the Company’s liquidity position and the impact on the Company’s capital position. As a result of its analyses, the Company determined at December 31, 2015 and 2014 that the unrealized losses on its securities portfolio on which impairments had not been recognized are temporary. |
Note 3 - Loans, Allowance for L
Note 3 - Loans, Allowance for Loan Losses, and Non-performing Assets | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | (3) Loans , Allowance for Loan Losses, and Non-Performing Assets Loans As of December 31, 2015 and 2014, total loans outstanding totaled $598.1 million and $442.8 million, respectively. The categories of loans listed below are grouped in accordance with the primary purpose of the loans, but in the aggregate 83.7% and 83.5% of all loans are secured by real estate at December 31, 2015 and 2014, respectively. December 31, 2015 2014 (dollars in thousands) Amount Percent Amount Percent Commercial (1) $ 112,861 18.9 % $ 91,694 20.7 % Commercial real estate 259,013 43.3 % 185,752 42.0 % Residential 127,367 21.3 % 98,806 22.3 % Land and construction 59,808 10.0 % 37,075 8.4 % Consumer and other (2) 39,058 6.5 % 29,458 6.6 % Loans, gross 598,107 100.0 % 442,785 100.0 % Net deferred costs 326 71 Less — (8,961 ) (7,599 ) Loans, net $ 589,472 $ 435,257 (1) Unsecured commercial loan balances were $34.4 million and $25.1 million at December 31, 2015 and 2014, respectively. (2) Unsecured consumer and other loan balances were $10.6 million and $5.1 million at December 31, 2015 and 2014, respectively. As of December 31, 2015 and 2014, substantially all of the Company’s loan customers were located in Southern California. Allowance for Loan Losses and Recorded Investment in Loans The following is a summary of activities for the allowance for loan losses and recorded investment in loans as of December 31, 2015 and 2014, respectively. (in thousands) Commercial Commercial Real E state Residential Land and Construction Consumer and Other Total For the Year Ended December 31, 2015 : Allowance for loan losses: Beginning balance $ 1,752 $ 3,825 $ 747 $ 816 $ 459 $ 7,599 Provision for loan losses — 755 160 330 80 1,325 Charge-offs — — — — (18 ) (18 ) Recoveries 55 — — — — 55 Ending balance $ 1,807 $ 4,580 $ 907 $ 1,146 $ 521 $ 8,961 As of December 31, 2015 : Ending balance: individually evaluated for impairment $ 35 $ — $ — $ — $ — $ 35 Ending balance: collectively evaluated for impairment 1,772 4,580 907 1,146 521 8,926 Total $ 1,807 $ 4,580 $ 907 $ 1,146 $ 521 $ 8,961 Loans: Ending balance: individually evaluated for impairment $ 712 $ — $ — $ — $ 47 $ 759 Ending balance: collectively evaluated for impairment 112,149 259,013 127,367 59,808 39,011 597,348 Total $ 112,861 $ 259,013 $ 127,367 $ 59,808 $ 39,058 $ 598,107 For the Year Ended December 31, 2014 : Allowance for loan losses: Beginning balance $ 1,583 $ 3,660 $ 758 $ 811 $ 424 $ 7,236 Provision for loan losses 115 165 (220 ) 5 35 100 Charge-offs — — — — — — Recoveries 54 — 209 — — 263 Ending balance $ 1,752 $ 3,825 $ 747 $ 816 $ 459 $ 7,599 As of December 31, 2014 : Ending balance: individually evaluated for impairment $ 20 $ — $ — $ — $ — $ 20 Ending balance: collectively evaluated for impairment 1,732 3,825 747 816 459 7,579 Total $ 1,752 $ 3,825 $ 747 $ 816 $ 459 $ 7,599 Loans: Ending balance: individually evaluated for impairment $ 632 $ — $ — $ — $ 49 $ 681 Ending balance: collectively evaluated for impairment 91,062 185,752 98,806 37,075 29,409 442,104 Total $ 91,694 $ 185,752 $ 98,806 $ 37,075 $ 29,458 $ 442,785 There were no loans acquired with deteriorated credit quality as of December 31, 2015 and 2014. In addition to the allowance for loan losses, the Company also estimates probable losses related to unfunded lending commitments. Unfunded lending commitments are subject to individual reviews and are analyzed and segregated by product type. These classifications, in conjunction with an analysis of historical loss experience, current economic conditions, performance trends within specific portfolio segments and any other pertinent information, result in the estimation of the reserve for unfunded lending commitments. Provision for credit losses related to unfunded lending commitments is reported in other operating expenses in the Consolidated Statements of Operations and Comprehensive Income. The allowance held for unfunded lending commitments is reported in accrued interest and other liabilities within the accompanying Consolidated Balance Sheets, and not as part of the allowance for loan losses in the above tables. As of December 31, 2015 and 2014, the allowance for unfunded lending commitments was $345,000 and $320,000, respectively and is primarily related to $159.9 million and $146.4 million in commitments to extend credit to customers and $3.2 million and $2.7 million in standby/commercial letters of credit at December 31, 2015 and 2014, respectively. Non-Performing Assets The following table presents an aging analysis of the recorded investment of past due loans as of December 31, 2015 and 2014. Payment activity is reviewed by management on a monthly basis to determine the performance of each loan. Loans are considered to be non-performing when a loan is greater than 90 days delinquent. Loans that are 90 days or more past due may still accrue interest if they are well-secured and in the process of collection. Total additions to non-performing loans during the years ended December 31, 2015 and 2014 were $100,000 and none, respectively. Non-performing loans represented 0.1% of total loans at both December 31, 2015 and 2014. There were no accruing loans past due 90 days or more at December 31, 2015 and 2014. (in thousands) 30-59 Days Past Due 60-89 Days Past Due > 90 Days Past Due Total Past Due Current Total As of December 31, 2015 : Commercial $ — $ — $ 712 $ 712 $ 112,149 $ 112,861 Commercial real estate — — — — 259,013 259,013 Residential — — — — 127,367 127,367 Land and construction — — — — 59,808 59,808 Consumer and other — — — — 39,058 39,058 Totals $ — $ — $ 712 $ 712 $ 597,395 $ 598,107 As of December 31, 2014 : Commercial $ — $ 60 $ 572 $ 632 $ 91,062 $ 91,694 Commercial real estate — — — — 185,752 185,752 Residential — — — — 98,806 98,806 Land and construction — — — — 37,075 37,075 Consumer and other — — — — 29,458 29,458 Totals $ — $ 60 $ 572 $ 632 $ 442,153 $ 442,785 The following table sets forth non-accrual loans and other real estate owned at December 31, 2015 and 2014: December 31, (dollars in thousands) 2015 2014 Non-accrual loans: Commercial $ 712 $ 632 Commercial real estate — — Land and construction — — Consumer and other — — Total non-accrual loans 712 632 OREO — — Total non-performing assets $ 712 $ 632 Non-performing assets to gross loans and OREO 0.12 % 0.14 % Non-performing assets to total assets 0.10 % 0.11 % Credit Quality Indicators The following table represents the credit exposure by internally assigned grades at December 31, 2015 and 2014. This grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements in accordance with the loan terms. The Company’s internal credit risk grading system is based on management’s experiences with similarly graded loans. Credit risk grades are reassessed each quarter based on any recent developments potentially impacting the creditworthiness of the borrower, as well as other external statistics and factors, which may affect the risk characteristics of the respective loan. The Company’s internally assigned grades are as follows: Pass Special Mention Substandard Doubtful Loss (in thousands) Commercial Commercial Real Estate Residential Land and Construction Consumer and Other As of December 31, 2015 : Grade: Pass $ 111,970 $ 259,013 $ 127,367 $ 59,808 $ 39,011 Special Mention 179 — — — — Substandard 712 — — — 47 Total $ 112,861 $ 259,013 $ 127,367 $ 59,808 $ 39,058 As of December 31, 2014 : Grade: Pass $ 90,235 $ 185,201 $ 98,806 $ 37,075 $ 29,409 Special Mention 180 — — — — Substandard 1,279 551 — — 49 Total $ 91,694 $ 185,752 $ 98,806 $ 37,075 $ 29,458 There were no loans assigned to the Doubtful or Loss grade as of December 31, 2015 and 2014. Impaired Loans The following table includes the recorded investment and unpaid principal balances for impaired loans with the associated allowance amount, if applicable. Management determined the specific allowance based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, except when the remaining source of repayment for the loan is the operation or liquidation of the collateral. In those cases, the current fair value of the collateral, less selling costs was used to determine the specific allowance recorded. Also presented in the table below are the average recorded investments in the impaired loans and the related amount of interest recognized during the time within the period that the impaired loans were impaired. When the ultimate collectability of the total principal of an impaired loan is in doubt and the loan is on nonaccrual status, all payments are applied to principal, under the cost recovery method. When the ultimate collectability of the total principal of an impaired loan is not in doubt and the loan is on non-accrual status, contractual interest is credited to interest income when received, under the cash basis method. The average balances are calculated based on the month-end balances of the loans of the period reported. (in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment As of and for the year ended December 31, 2015 : With no related allowance recorded: Commercial $ 572 $ 848 $ — $ 572 Commercial real estate — — — — Residential — — — — Land and construction — — — — Consumer and other 47 47 — 48 With an allowance recorded: Commercial $ 140 $ 155 $ 35 $ 107 Commercial real estate — — — — Residential — — — — Land and construction — — — — Consumer and other — — — — Totals: Commercial $ 712 $ 1,003 $ 35 $ 679 Commercial real estate $ — $ — $ — $ — Residential $ — $ — $ — $ — Land and construction $ — $ — $ — $ — Consumer and other $ 47 $ 47 $ — $ 48 As of and for the year ended December 31, 2014 : With no related allowance recorded: Commercial $ 572 $ 848 $ — $ 707 Commercial real estate — — — — Residential — — — — Land and construction — — — — Consumer and other 49 49 — 36 With an allowance recorded: Commercial $ 60 $ 74 $ 20 $ 106 Commercial real estate — — — — Residential — — — — Land and construction — — — — Consumer and other — — — — Totals: Commercial $ 632 $ 922 $ 20 $ 813 Commercial real estate $ — $ — $ — $ — Residential $ — $ — $ — $ — Land and construction $ — $ — $ — $ — Consumer and other $ 49 $ 49 $ — $ 36 During the years ended December 31, 2015 and 2014, the average balance of impaired loans was $727,000 and $849,000, respectively. As of December 31, 2015 and 2014, there was $712,000 and $632,000, respectively, of impaired loans on non-accrual status. During the year ended December 31, 2015 and 2014, interest income recognized on impaired loans subsequent to their classification as impaired was $3,000 and $8,000, respectively. The Company stops accruing interest on these loans on the date they are classified as non-accrual and reverses any uncollected interest that had been previously accrued as income. The Company may begin recognizing interest income on these loans as cash interest payments are received, if collection of principal is reasonably assured. Troubled Debt Restructurings Troubled debt restructurings for the years ended December 31, 2015 and 2014 are set forth in the following table. For the Years Ended December 31, 2015 2014 (dollars in thousands) Number of Loans Pre Modification Outstanding Recorded Investment Post Modification Outstanding Recorded Investment Number of Loans Pre Modification Outstanding Recorded Investment Post Modification Outstanding Recorded Investment Troubled Debt Restructurings: Commercial — $ — $ — 1 $ 50 $ 50 The modification in connection with the troubled debt restructurings during the year ended December 31, 2014 was primarily related to extending the amortization period of this loan. The impact on the Company’s determination of the allowance for loan losses related to these troubled debt restructurings was not material and resulted in no charge-offs during the years ended December 31, 2015 and 2014. During the years ended December 31, 2015 and 2014, there had been no defaults on any loans that were modified as troubled debt restructurings during the preceding twelve months. A troubled debt restructuring is considered to be in default once it becomes 60 days or more past due following a modification. |
Note 4 - Derivative Financial I
Note 4 - Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | (4) Derivative Financial Instruments The fair value of derivative positions outstanding is included in accrued interest receivable and other assets and accrued interest payable and other liabilities in the accompanying Consolidated Balance Sheets and in the net change in each of these financial statement line items in the accompanying Consolidated Statements of Cash Flows. Interest Rate Derivatives. The notional amounts and estimated fair values of interest rate derivative contracts outstanding at December 31, 2015 and 2014 are presented in the following table. The Company obtains dealer quotations to value its interest rate derivative contracts. December 31, 2015 December 31, 2014 (in thousands) Notional Estimated Notional Estimated Non-hedging interest rate derivatives: Commercial loan interest rate swaps $ 2,032 $ (30 ) $ 2,650 $ (23 ) Commercial loan interest rate swaps $ (2,032 ) $ 30 $ (2,650 ) $ 23 The weighted-average rates paid and received for interest rate swaps outstanding at December 31, 2015 and 2014 were as follows: December 31, 2015 Weighted-Average December 31, 2014 Weighted-Average Interest Paid Interest Interest Paid Interest Non-hedging interest rate swaps 3.68 % 4.96 % 3.37 % 4.85 % Non-hedging interest rate swaps 4.96 % 3.68 % 4.85 % 3.37 % Gains, Losses and Derivative Cash Flows As stated above, the Company enters into non-hedge related derivative positions primarily to accommodate the business needs of its customers. Upon the origination of a derivative contract with a customer, the Company simultaneously enters into an offsetting derivative contract with a third party. The Company recognizes immediate income based upon the difference in the bid/ask spread of the underlying transactions with its customers and the third party. Because the Company acts only as an intermediary for its customer, subsequent changes in the fair value of the underlying derivative contracts for the most part offset each other and do not significantly impact the Company’s results of operations. |
Note 5 - Comprehensive Income
Note 5 - Comprehensive Income | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | (5) Comprehensive Income Comprehensive income, which includes net income, the net change in unrealized gains on investment securities available for sale and the reclassification of net gains included in earnings, is presented below: For the Years Ended December 31, (in thousands) 2015 2014 Net income $ 2,553 $ 2,361 Other comprehensive income: Change in net unrealized (losses) gains on investment securities available for sale, net of tax (benefit) expense of ($75) and $561, respectively (107 ) 804 Reclassification for net gains included in earnings, net of tax expense of $31 and $484, respectively (44 ) (694 ) Comprehensive income $ 2,402 $ 2,471 Reclassification adjustments of $75,000 and $1.2 million for the years ended December 31, 2015 and 2014, respectively, are included in non-interest income within the Consolidated Statements of Operations and Comprehensive Income. Income tax expense associated with these reclassification adjustments for the years ended December 31, 2015 and 2014 was $31,000 and $484,000, respectively, and is included in income tax provision within the Consolidated Statements of Operations and Comprehensive Income. Activity of investment securities available for sale included in accumulated other comprehensive income, net of tax, is as follows: For the Years Ended December 31, (in thousands) 2015 2014 Beginning balance $ 162 $ 52 Other comprehensive (loss) income before reclassifications (107 ) 804 Amounts reclassified from accumulated other comprehensive income (44 ) (694 ) Net other comprehensive (loss) income (151 ) 110 Ending balance $ 11 $ 162 |
Note 6 - Related Party Transact
Note 6 - Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | ( 6) Related Party Transactions In the normal course of business, the Company may make loans to officers and directors, as well as loans to companies and individuals affiliated with or guaranteed by officers and directors of the Company. Gross loan commitments for officers and directors of the Company were $3.6 million and $3.1 million at December 31, 2015 and 2014, respectively. The outstanding balances for these loans were $3.2 million and $2.4 million at December 31, 2015 and 2014, respectively. The following is a summary of related party loan activities for the years ended December 31, 2015 and 2014: December 31, (in thousands) 2015 2014 Beginning balance $ 2,351 $ 1,514 Disbursements 1,185 1,030 Repayments (304 ) (193 ) Ending balance $ 3,232 $ 2,351 Deposits by officers and directors of the Company at December 31, 2015 and 2014 totaled approximately $9.3 million and $8.5 million, respectively. |
Note 7 - Premises and Equipment
Note 7 - Premises and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | ( 7 ) Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation and amortization. The depreciation and amortization are computed on a straight line basis over the lesser of the lease term, or the estimated useful lives of the assets, generally three to ten years. Premises and equipment at December 31, 2015 and 2014 are comprised of the following: December 31, (in thousands) 2015 2014 Leasehold improvements $ 1,881 $ 1,537 Furniture & equipment 3,150 2,803 Software 871 847 Total 5,902 5,187 Accumulated depreciation (4,275 ) (3,727 ) Premises and equipment, net $ 1,627 $ 1,460 Depreciation and amortization included in occupancy expense for the years ended December 31, 2015 and 2014 amounted to $577,000 and $491,000, respectively. |
Note 8 - Deposits
Note 8 - Deposits | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Deposit Liabilities Disclosures [Text Block] | ( 8 ) Deposits The following table reflects the summary of deposit categories by dollar and percentage at December 31, 2015 and 2014: December 31, 2015 December 31, 2014 (dollars in thousands) Amount Percent of Total Amount Percent of Total Non-interest bearing demand deposits $ 362,451 60.6 % $ 282,217 56.1 % Interest bearing demand deposits 32,406 5.4 % 25,492 5.1 % Money market deposits and savings 155,572 26.0 % 154,706 30.7 % Certificates of deposit 47,748 8.0 % 40,757 8.1 % Total $ 598,177 100.0 % $ 503,172 100.0 % At December 31, 2015, the Company had two certificates of deposits with the State of California Treasurer’s Office for a total of $46.0 million that represented 7.7% of total deposits. Each of these deposits are scheduled to mature in the first quarter of 2016. The Company intends to renew each of these deposits at maturity. However, there can be no assurance that the State of California Treasurer’s Office will continue to maintain deposit accounts with the Company. At December 31, 2014, the Company had two certificate of deposit accounts with the State of California Treasurer’s Office for a total of $38.0 million that represented 7.6% of total deposits. The Company was required to pledge $50.6 million and $41.8 million of investment securities at December 31, 2015 and 2014, respectively, in connection with these certificates of deposit. At both December 31, 2015 and 2014, the Company had $505,000 of Certificate of Deposit Accounts Registry Service (“CDARS”) reciprocal deposits, which both represented 0.1% of total deposits. The aggregate amount of certificates of deposit of $250,000 or greater at December 31, 2015 and 2014 was $46.5 million and $38.6 million, respectively. At December 31, 2015, the maturity distribution of certificates of deposit of $250,000 or greater, including deposit accounts with the State of California Treasurer’s Office and CDARS, was as follows: $46.5 million maturing in six months or less, none maturing in six months to one year and none maturing in more than one year. The table below sets forth the range of interest rates, amount and remaining maturities of the certificates of deposit at December 31, 2015. (dollars in thousands) Six months Greater than Greater than 0.00% to 0.99% $ 47,467 $ 184 $ 69 1.00% to 1.99% — — 28 Total $ 47,467 $ 184 $ 97 |
Note 9 - Other Borrowings
Note 9 - Other Borrowings | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract] | |
Other Liabilities Disclosure [Text Block] | ( 9 ) Other Borrowings At December 31, 2015 and 2014, the Company had a borrowing/credit facility secured by a blanket lien on eligible loans at the FHLB of $180.0 million and $146.0 million, respectively. The Company had $15.0 million and $17.5 million of long-term borrowings outstanding under this borrowing/credit facility with the FHLB at December 31, 2015 and 2014, respectively. At December 31, 2015, the Company had a $50.0 million overnight borrowing outstanding under this borrowing/credit facility at an interest rate of 0.27%. The Company did not incur any material interest expense in connection with this borrowing. The overnight borrowing was repaid in January 2016. There were no further overnight borrowings during the years ended December 31, 2015 and 2014. The following table summarizes the outstanding long-term borrowings under the borrowing/credit facility secured by a blanket lien on eligible loans at the FHLB at December 31, 2015 and 2014 (dollars in thousands): December 31, Maturity Date Interest Rate 2015 2014 May 26, 2015 1.65% $ — $ 2,500 May 23, 2016 2.07% 2,500 2,500 December 29, 2016 1.38% 5,000 5,000 December 30, 2016 1.25% 2,500 2,500 May 2, 2018 0.93% 5,000 5,000 Total $ 15,000 $ 17,500 At December 31, 2015, the Company also had $27.0 million in Federal fund lines of credit available with other correspondent banks that could be used to disburse loan commitments and to satisfy demands for deposit withdrawals. Each of these lines of credit is subject to conditions that the Company may not be able to meet at the time when additional liquidity is needed. The Company did not have any borrowings outstanding under these lines of credit at December 31, 2015 and 2014. As of December 31, 2015 and 2014, the Company had pledged $2.3 million and $2.5 million, respectively of corporate notes related to these lines of credit. |
Note 10 - Commitments and Conti
Note 10 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | ( 10 ) Commitment s and Contingencies Commitments to Extend Credit The Company is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby/commercial letters of credit and guarantees on revolving credit card limits. These instruments involve various levels and elements of credit and interest rate risk in excess of the amount recognized in the accompanying consolidated financial statements. The contract or notional amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. The Company had $159.9 million and $146.4 million in commitments to extend credit to customers and $3.2 million and $2.7 million in standby/commercial letters of credit at December 31, 2015 and 2014, respectively. The Company also guarantees the outstanding balance on credit cards offered at the Company, but underwritten by another financial institution. The outstanding balances on these credit cards were $82,000 and $136,000 as of December 31, 2015 and 2014, respectively. Lease Commitments The Company leases office premises under three operating leases that will expire in December 2018, May 2019 and June 2024, respectively. Rental expense, which is included in occupancy expense, was $1.1 million and $951,000 for the years ended December 31, 2015 and 2014, respectively. The projected minimum rental payments under the term of the leases at December 31, 2015 are as follows (in thousands): Years ending December 31, 2016 $ 985 2017 1,015 2018 1,046 2019 834 2020 760 Thereafter 2,840 Total $ 7,480 Litigation The Company from time to time is party to lawsuits, which arise out of the normal course of business. At December 31, 2015 and 2014, the Company did not have any litigation that management believes will have a material impact on the Consolidated Balance Sheets or Consolidated Statements of Operations and Comprehensive Income. Restricted Stock The following table sets forth the Company’s future restricted stock expense, net of estimated forfeitures (in thousands): Years ending December 31, 2016 $ 707 2017 525 2018 323 2019 184 2020 126 Thereafter 27 Total $ 1,892 |
Note 11 - Fair Value Measuremen
Note 11 - Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Fair Value, Measurement Inputs, Disclosure [Text Block] | ( 11 ) Fair Value Measurements The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring and non-recurring basis as of December 31, 2015 and 2014, and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. Assets and Liabilities Measured on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis are summarized below: Fair Value Measurements Using (in thousands) Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) At December 31, 2015 : Investments-Available for Sale U.S. Treasuries and Government Agencies $ 34,599 $ 3,910 $ 30,689 $ — Residential Mortgage-Backed Securities 39,411 — 39,411 — Derivative Assets – 30 — 30 — Derivative Liabilities – 30 — 30 — At December 31, 2014 : Investments-Available for Sale U.S. Treasuries and Government Agencies $ 26,128 $ 3,885 $ 22,243 $ — Corporate Notes 2,538 — 2,538 — Residential Mortgage-Backed Securities 51,023 — 51,023 — Derivative Assets – 23 — 23 — Derivative Liabilities – 23 — 23 — AFS securities The valuation for investment securities utilizing Level 2 inputs were primarily determined by quotes received from an independent pricing service using matrix pricing, which is a mathematical technique widely used in the industry to value securities without relying exclusively on quoted market prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities. There were no transfers into or out of Level 1 and 2 measurements during the years ended December 31, 2015 and 2014. Assets Measured on a Non-Recurring Basis Assets measured at fair value on a non-recurring basis are summarized below: Fair Value Measurements Using (in thousands) Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) At December 31, 2015 : Impaired loans Commercial $ 677 $ — $ — $ 677 At December 31, 2014 : Impaired loans Commercial $ 612 $ — $ — $ 612 Impaired loans Other real estate owned |
Note 12 - Estimated Fair Value
Note 12 - Estimated Fair Value Information | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | ( 12 ) Estimated Fair Value Information The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many cases, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Estimated fair value amounts have been determined by using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret market data to develop the estimates of fair value. Accordingly, the estimates presented are not necessarily indicative of the amounts the Company could realize in a current market exchange. The methods and assumptions used to estimate the fair value of each class of financial instruments for which it is practicable to estimate the value are explained below. Cash and cash equivalents The carrying amounts are considered to be their estimated fair values and are classified as Level 1 because of the short-term maturity of these instruments which includes Federal funds sold and interest-earning deposits at other financial institutions. Investment securities AFS investment securities are carried at fair value, which are based on quoted prices of exact or similar securities, or on inputs that are observable, either directly or indirectly. The Company obtains quoted prices through third party brokers. Investment securities are classified as Level 1 to the extent that they are based on quoted prices for identical instrument traded in active markets. Investment securities are classified as Level 2 for valuations based on quotes prices for similar securities or inputs that are observable, either directly or indirectly. FRB and FHLB stock It is not practical to determine the fair value of FRB and FHLB stock due to restrictions placed on its transferability. Loans, net For loans, the fair value is estimated using market quotes for similar assets or the present value of future cash flows, discounted using the current rate at which similar loans would be made to borrowers with similar credit ratings and for the same maturities and giving consideration to estimated prepayment risk and credit risk. The fair value of loans is determined utilizing estimates resulting in a Level 3 classification. Impaired loans are measured for impairment based on the present value of expected future cash flows discounted at the loan’s effective interest rate, except that as a practical expedient, the Company may measure impairment based on a loan’s observable market price, or the fair value of the collateral (net of estimated costs to sell) if the loan is collateral dependent. The fair value of impaired loans is determined utilizing estimates resulting in a Level 3 classification. Off-balance sheet credit-related instruments The fair values of commitments, which include standby letters of credit and commercial letters of credit, are based upon fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The related fees are not considered material to the Company’s financial statements as a whole and the fair market value of the Company’s off-balance sheet credit-related instruments cannot be readily determined. The fair value of these items is determined utilizing estimates resulting in a Level 3 classification. Derivatives Deposits For demand deposits, the carrying amount approximates fair value. The fair values of interest bearing checking, savings, and money market deposits are estimated by discounting future cash flows using the interest rates currently offered for deposits of similar products. Because of the short-term maturity of these deposits, the carrying amounts are considered to be their estimated fair values and are classified as Level 1. The fair values of the certificates of deposit are estimated by discounting future cash flows based on the rates currently offered for certificates of deposit with similar interest rates and remaining maturities. The fair value of certificates of deposit is determined utilizing estimates resulting in a Level 2 classification. Other borrowings The fair values of long term FHLB advances are estimated based on the rates currently offered by the FHLB for advances with similar interest rates and remaining maturities. The fair value of other borrowings is determined utilizing estimates resulting in a Level 2 classification. Accrued interest The estimated fair value for both accrued interest receivable and accrued interest payable are considered to be equivalent to the carrying amounts, resulting in a Level 1 classification. The estimated fair value and carrying amounts of the financial instruments at December 31, 2015 and 2014 are as follows: Carrying Fair Value Measurements Using: (dollars in thousands) Amount Level 1 Level 2 Level 3 Total As of December 31, 2015 Assets Cash and cash equivalents $ 54,565 $ 54,565 $ — $ — $ 54,565 Investment securities 74,010 3,910 70,100 — 74,010 FRB stock 1,748 — — — N/A FHLB stock 3,167 — — — N/A Loans, net 589,472 — — 587,530 587,530 Non-hedging interest rate swaps 30 — 30 — 30 Accrued interest receivable 1,692 1,692 — — 1,692 Liabilities Non-interest bearing deposits $ 362,451 $ 362,451 $ — $ — $ 362,451 Interest bearing deposits 235,726 187,978 47,748 — 235,726 Other borrowings 65,000 — 64,983 — 64,983 Non-hedging interest rate swaps 30 — 30 — 30 Accrued interest payable 23 23 — — 23 As of December 31, 2014 Assets Cash and cash equivalents $ 58,464 $ 58,464 $ — $ — $ 58,464 Investment securities 79,689 3,885 75,804 — 79,689 FRB stock 1,655 — — — N/A FHLB stock 3,167 — — — N/A Loans, net 435,257 — — 433,588 433,588 Non-hedging interest rate swaps 23 — 23 — 23 Accrued interest receivable 1,418 1,418 — — 1,418 Liabilities Non-interest bearing deposits $ 282,217 $ 282,217 $ — $ — $ 282,217 Interest bearing deposits 220,955 180,198 40,757 — 220,955 Other borrowings 17,500 — 17,551 — 17,551 Non-hedging interest rate swaps 23 — 23 — 23 Accrued interest payable 23 23 — — 23 |
Note 13 - Non-interest Income
Note 13 - Non-interest Income | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Other Income and Other Expense Disclosure [Text Block] | (13 ) Non-Interest Income The following table summarizes the information regarding non-interest income for the years ended December 31, 2015 and 2014, respectively: Years ended December 31, (in thousands) 2015 2014 Gain on sale of AFS investment securities $ 75 $ 1,178 Service charges and other operating income 593 533 Total non-interest income $ 668 $ 1,711 |
Note 14 - Other Operating Expen
Note 14 - Other Operating Expenses | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Other Operating Income and Expense [Text Block] | ( 14 ) Other Operating Expenses The following table summarizes the information regarding other operating expenses for the years ended December 31, 2015, and 2014, respectively: Years ended December 31, (in thousands) 2015 2014 Loan expenses $ 121 $ 85 Board of Directors fees/non-cash stock expenses 376 434 OCC assessments 166 148 Branch and production office expenses 992 777 Stationery and supplies 122 109 Insurance 82 76 Dues, memberships and subscriptions 247 202 Stockholders expense 126 128 Telephone 145 102 Delaware Franchise Tax 110 110 Provision for unfunded lending commitments 25 50 Personnel hiring expenses 69 76 Other expenses 251 238 Total other operating expenses $ 2,832 $ 2,535 |
Note 15 - Stock-based Compensat
Note 15 - Stock-based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ( 15 ) Stock-Based Compensation On May 8, 2013, the shareholders of the Company approved the Company’s 2013 Equity Incentive Plan (the “Plan”), which provides for the grant of up to 750,000 shares of Common Stock to employees, including officers and directors, non-employee directors and consultants. Stock options, stock appreciation rights, restricted stock and other stock awards, and restricted stock units are all available for grant pursuant to the terms and conditions of the Plan. The Plan was established to consolidate and replace all other previous stock plans and the remaining shares available for grant under these previous plans were cancelled. Prior to the approval of the Plan, the Company granted restricted stock awards to directors and employees under the 2005 Equity Incentive Plan. Restricted stock awards are considered fixed awards as the number of shares and fair value is known at the date of grant and the fair value at the grant date is amortized over the requisite service period. Non-cash stock compensation expense recognized in the Consolidated Statements of Operations and Comprehensive Income related to the restricted stock awards, net of estimated forfeitures, was $994,000 and $879,000 for the years ended December 31, 2015 and 2014, respectively. The fair value of restricted stock awards that vested during the years ended December 31, 2015, and 2014 was $778,000 and $541,000, respectively. The following table reflects the activities related to restricted stock awards outstanding for the years ended December 31, 2015 and 2014, respectively. Years Ended December 31 , 2015 2014 Restricted Shares Number Weighted Avg Fair Value at Grant Date Number Weighted Avg Fair Value at Grant Date Beginning balance 615,875 $ 5.92 529,529 $ 4.62 Granted 218,750 6.98 228,000 7.63 Vested (164,875 ) 4.72 (141,654 ) 3.82 Forfeited and surrendered — — — — Ending balance 669,750 $ 6.56 615,875 $ 5.92 The Company recognizes compensation expense for stock options by amortizing the fair value at the grant date over the service, or vesting period . During the years ended December 31, 2015 and 2014, there were none and 72,000, respectively, options exercised under the 2004 Founder Stock Option Plan at a weighted average exercise price of $5.00 per share. During the year ended December 31, 2014, the remaining 19,800 of unexercised options under the plan expired and were automatically cancelled. The weighted average exercise price of the cancelled options was $5.00 per share. As of December 31, 2015 and 2014, there were no remaining options outstanding related to the plan. There have been no options granted under the Director and Employee Stock Option Plan for the years ended December 31, 2015 or 2014. There have been 307,573 and 450,600 options exercised during the years ended December 31, 2015 and 2014, respectively, at a weighted average price of $8.01 and $5.07 per share, respectively. The remaining contractual life of the Director and Employee Stock Options outstanding was none and 0.58 years at December 31, 2015 and 2014, respectively. All options under the Directors and Employee Stock Option Plan were exercisable at December 31, 2014. During the year ended December 31, 2015, 42,500 of unexercised option under the plan expired and were automatically cancelled. The weighted average exercise price of the cancelled option was $8.40 per share. At December 31, 2014, the weighted average exercise price of the 350,073 shares outstanding under the Director and Employee Stock Option Plan was $8.06. As of December 31, 2015 there were no remaining options outstanding related to the plan. The following tables detail the amount of shares authorized and available under all stock plans as of December 31, 2015: Shares Reserved Less Shares Previously Less Shares Total Shares 2004 Founder Stock Option Plan 150,000 121,900 — — Director and Employee Stock Option Plan 1,434,000 1,220,097 — — 2005 Equity Incentive Plan 1,200,000 944,273 243,000 — 2013 Equity Incentive Plan 750,000 20,000 426,750 303,250 |
Note 16 - Income Taxes
Note 16 - Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | ( 16 ) Income Taxes The income tax provision consists of the following for the years ended December 31, 2015 and 2014: (in thousands) 2015 2014 Current: Federal $ 2,584 $ 1,573 State 837 263 Deferred: Federal (1,096 ) (77 ) State (377 ) 144 Income tax provision $ 1,948 $ 1,903 A reconciliation of the amounts computed by applying the federal statutory rate of 34% for 2015 and 2014 to the loss before income tax provision and the effective tax rate are as follows: 2015 2014 (dollars in thousands) Amount Percent of Pretax Amount Percent of Pretax Federal income tax provision at statutory rate $ 1,530 34 % $ 1,450 34 % Changes due to: State franchise tax, net of federal income tax 327 7 % 310 7 % Other, net 91 2 % 143 4 % Total income tax provision (benefit) $ 1,948 43 % $ 1,903 45 % The major components of the net deferred tax assets and liabilities at December 31, 2015 and 2014 are as follows: (in thousands) 2015 2014 Deferred tax assets: Allowance for loan losses $ 2,344 $ 1,336 Equity compensation 927 646 Depreciation 86 96 Accrued compensation 549 390 Deferred rent 247 228 Other 578 562 Total deferred tax assets 4,731 3,258 Deferred tax liabilities: Prepaid expenses 93 93 Federal Home Loan Bank stock dividends 57 57 Net unrealized gains on investment securities 7 113 Total deferred tax liabilities 157 263 Net deferred tax assets $ 4,574 $ 2,995 A valuation allowance is required if it is “more likely than not” that a deferred tax asset will not be realized. The determination of the realizability of the deferred tax assets is highly subjective and dependent upon judgment concerning management’s evaluation of both positive and negative evidence, including historic financial performance, the forecasts of future income, existence of feasible tax planning strategies, length of statutory carryforward periods, and assessments of the current and future economic and business conditions. Management evaluates the positive and negative evidence and determines the realizability of the deferred tax asset on a quarterly basis. At December 31, 2015 and 2014, the Company had a net deferred tax asset of approximately $4.6 million and $3.0 million, respectively. No uncertain tax positions were identified as of December 31, 2015 and 2014, and the Company had no tax reserve for uncertain tax positions at December 31, 2015 and 2014. The Company does not anticipate providing a reserve for uncertain tax positions in the next twelve months. Furthermore, the Company has elected to record interest accrued and penalties related to unrecognized tax benefits in tax expense. At December 31, 2015 and 2014, the Company did not have an accrual for interest and/or penalties associated with uncertain tax positions. The Company files income tax returns in the U.S. federal and California jurisdictions. The Company is no longer subject to U.S. federal and state income tax examinations by tax authorities for years before 2012 and 2011, respectively. |
Note 17 - Employee Benefit Plan
Note 17 - Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | ( 17 ) Employee Benefit Plan The Company has a 401(k) plan for all employees and permits voluntary contributions of their salaries on a pre-tax basis, subject to statutory and Internal Revenue Service guidelines. The contributions to the 401(k) plan are invested at the directions of the participants. The Company matches 100% of the employee’s contribution up to the first 3% of the employee’s salary and 50% of the employee’s contribution up to the next 2% of the employee’s salary. The Company’s expense relating to the contributions made to the 401(k) plan for the benefit of the employees for the years ended December 31, 2015 and 2014 was $229,000 and $199,000, respectively. |
Note 18 - Regulatory Matters
Note 18 - Regulatory Matters | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Regulatory Capital Requirements under Banking Regulations [Text Block] | ( 18 ) Regulatory Matters Capital Bancshares and the Bank are subject to the various regulatory capital requirements administered by federal banking agencies. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, Bancshares and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Failure to meet minimum capital requirements can initiate certain mandatory – and possibly additional discretionary – actions by regulators that, if undertaken, could have a direct material effect on the financial statements of the Company. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital (as defined in the regulation) to risk-weighted assets (as defined) and of Tier 1 capital (as defined) to average assets (as defined). Management believes that as of December 31, 2015 and 2014, the Company and the Bank met all capital adequacy requirements to which they are subject. At December 31, 2015, the most recent notification from the OCC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well-capitalized, the Bank must maintain minimum total risk-based, Tier 1 risk-based and Tier 1 leverage ratios. There are no conditions or events since the notification that management believes have changed the Bank’s category. The Company’s and the Bank’s capital ratios as of December 31, 2015 and 2014 are presented in the table below: Company Bank For Capital Adequacy Purp oses For the Bank to be Well Capitalized Under Prompt Corrective Measures (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2015: Total Risk-Based Capital Ratio $ 73,029 11.24 % $ 72,520 11.16 % $ 51,992 8.00 % $ 64,989 10.00 % Tier 1 Risk-Based Capital Ratio $ 64,891 9.98 % $ 64,381 9.91 % $ 38,994 6.00 % $ 51,991 8.00 % Common Equity Tier 1 Capital Ratio $ 64,891 9.98 % $ 64,381 9.91 % $ 29,245 4.50 % $ 42,243 6.50 % Tier 1 Leverage Ratio $ 64,891 9.00 % $ 64,381 8.92 % $ 28,852 4.00 % $ 36,078 5.00 % December 31, 2014: Total Risk-Based Capital Ratio $ 67,275 13.94 % $ 63,339 13.13 % $ 38,603 8.00 % $ 48,253 10.00 % Tier 1 Risk-Based Capital Ratio $ 61,220 12.69 % $ 57,284 11.87 % $ 19,302 4.00 % $ 28,952 6.00 % Tier 1 Leverage Ratio $ 61,220 10.05 % $ 57,284 9.40 % $ 24,357 4.00 % $ 30,456 5.00 % On July 2, 2013, the Federal Reserve approved the final rules implementing the Basel Committee on Banking Supervision's (“BCBS”) capital guidelines for U.S. banks. Under the final rules, minimum requirements will increase for both the quantity and quality of capital held by the Company. The rules include a new common equity Tier 1 capital to risk-weighted assets ratio of 4.5%. The new rules also require a common equity Tier 1 capital conservation buffer of 2.5% of risk-weighted assets over each of the required capital ratios that will be phased in from 2016 to 2019 and must be met to avoid limitations the ability of the Bank to pay dividends, repurchase shares or pay discretionary bonuses. The final rules also raise the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0% to 6.0% and require a minimum leverage ratio of 4.0%. The final rules also implement strict eligibility criteria for regulatory capital instruments, excluding trust preferred securities, mortgage servicing rights and certain deferred tax assets, and including unrealized gains and losses on available for sale debt and equity securities. On July 9, 2013, the FDIC and OCC also approved, as an interim final rule, the regulatory capital requirements for U.S. banks, following the actions of the FRB. The FDIC and OCC's rules are identical in substance to the final rules issued by the FRB. The phase-in period for the final rules commenced for the Company and the Bank on January 1, 2015, with full compliance with all of the final rule's requirements phased in over a multi-year schedule. Dividends In the ordinary course of business, Bancshares is dependent upon dividends from the Bank to provide funds for the payment of dividends to shareholders and to provide for other cash requirements. Banking regulations may limit the amount of dividends that may be paid. Approval by regulatory authorities is required if the effect of dividends declared would cause the regulatory capital of the Bank to fall below specified minimum levels. Approval is also required if dividends declared exceed the net profits for that year combined with the retained net profits for the preceding two years. To date, Bancshares has not paid any cash dividends. Payment of stock or cash dividends in the future will depend upon earnings and financial condition and other factors deemed relevant by Bancshares’ Board of Directors, as well as Bancshares’ legal ability to pay dividends. Accordingly, no assurance can be given that any cash dividends will be declared in the foreseeable future. Consent Order On September 11, 2013, the Board of Directors of the Bank entered into a stipulation and consent to the issuance of a consent order with the OCC consenting to the issuance of a consent order (the “Consent Order”) by the OCC, effective as of that date. The Consent Order required the Bank to take corrective action to enhance its program and procedures for compliance with the Bank Secrecy Act (“BSA”) and other anti-money laundering regulations (“AML”). On February 23, 2015, the Board of Directors of the Bank was notified by the OCC that the OCC is terminating its Consent Order with the Bank, dated September 11, 2013, effective immediately. |
Note 19 - Parent Company Only C
Note 19 - Parent Company Only Condensed Financial Information | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | ( 19 ) Parent Company Only Condensed Financial Information The condensed financial statements of 1 st Condensed Balance Sheets (in thousands) December 31, 2015 December 31, 2014 Assets Cash and due from banks $ 535 $ 3,961 Investment in subsidiary bank 64,392 57,757 Total Assets $ 64,927 $ 61,718 Liabilities and Stockholders’ Equity Other liabilities $ 24 $ 25 Common stock 127 121 Additional paid-in capital 75,396 71,736 Retained earnings (accumulated deficit) 878 (1,675 ) Accumulated other comprehensive income 11 162 Treasury stock at cost (11,509 ) (8,651 ) Total Stockholders’ Equity 64,903 61,693 Total Liabilities and Stockholders’ Equity $ 64,927 $ 61,718 Condensed Statements of Operations and Comprehensive Income Years ended December 31, (in thousands) 2015 2014 Interest income $ — $ — Interest expense — — Net interest income — — Compensation and benefits (17 ) (33 ) Other operating expenses (19 ) (60 ) Loss before taxes (36 ) (93 ) Income tax benefit 5 — Loss before equity in undistributed income of subsidiary bank (31 ) (93 ) Equity in undistributed income of subsidiary bank 2,584 2,454 Net income $ 2,553 $ 2,361 Comprehensive income $ 2,402 $ 2,471 Condensed Statements of Cash Flows Years ended December, 31 (in thousands) 2015 2014 Cash flows from operating activities: Net income $ 2,553 $ 2,361 Adjustments to reconcile net income to net cash used in operations: Equity in undistributed net income of subsidiary bank (2,584 ) (2,454 ) (Decrease) increase in other liabilities (1 ) 7 Net cash used in operating activities (32 ) (86 ) Cash flows from investing activities: Investment in subsidiary bank (3,000 ) — Net cash used in investing activities (3,000 ) — Cash flows from financing activities: Proceeds from exercise of stock options 2,464 2,643 Shares surrendered on vesting and exercise of stock based compensation (2,858 ) (678 ) Net cash provided by financing activities (394 ) 1,965 Net change in cash and cash equivalents (3,426 ) 1,879 Cash and cash equivalents, beginning of year 3,961 2,082 Cash and cash equivalents, end of year $ 535 $ 3,961 |
Note 20 - Shareholders' Equity
Note 20 - Shareholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | ( 20 ) Shareholders' Equity The Company anticipates that, absent further developments, it may need to raise, at some point over the next several quarters, additional capital in order to maintain its well-capitalized status in light of, among other things, continued growth in its loan portfolio. The Company periodically considers its alternatives in this regard, which could include issuing shares of common stock under its previously filed registration statement on Form S-1 or other capital instruments, and there can be no assurance as to the form or nature of any such additional capital or the timing or amount thereof. The Company’s ability to raise any such additional capital is subject to various factors and uncertainties, many of which are beyond its control, including, among others, capital market conditions and general economic conditions. As of December 31, 2015, the Company had deferred financing costs with respect to the registration statement on Form S-1 of $173,000, which are included in the consolidated balance sheet as of December 31, 2015. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The consolidated financial statements include the accounts of Bancshares and the Bank. All inter-company accounts and transactions have been eliminated in consolidation. Certain items in the 2014 consolidated financial statements have been reclassified to conform to the 2015 presentation. Reclassifications had no effect on prior year net income or shareholders’ equity. The Company’s accounting and reporting policies conform to U.S. generally accepted accounting principles (“GAAP”) and to general practices within the banking industry. A summary of the significant accounting and reporting policies consistently applied in the preparation of the accompanying consolidated financial statements follows: |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Certain assumptions and estimates could prove to be incorrect and cause actual results to differ materially and adversely from the amounts reported in the consolidated financial statements included herewith. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash and cash equivalents include cash and due from banks, interest earning deposits at other financial institutions with original maturities less than 90 days and all highly liquid investments with original maturities of less than 90 days. Cash Flows Cash and cash equivalents include cash, deposits with other financial institutions with maturities fewer than 90 days, and federal funds sold. Net cash flows are reported for loan and deposit transactions, interest bearing deposits in other financial institutions and short-term borrowings. |
Marketable Securities, Policy [Policy Text Block] | Investment Securities Investment Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Declines in the fair value of investment securities below their cost that are deemed to be other-than-temporary are reflected in earnings as realized losses to the extent the impairment is related to credit losses. The amount of the impairment related to other factors is recognized in other comprehensive income provided that management does not have the intent to sell the securities and it is more likely than not that management will not have to sell the security before recovery of its cost basis. In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. |
Federal Reserve Bank Stock and Federal Home Loan Bank Stock [Policy Text Block] | Federal Reserve Bank Stock and Federal Home Loan Bank Stock The Bank is a member of the Federal Reserve System (“Fed” or “FRB”). FRB stock is carried at cost and is considered a nonmarketable equity security. Cash dividends from the FRB are reported as interest income on an accrual basis. The Bank is a member and stockholder of the capital stock of the Federal Home Loan Bank of San Francisco (“FHLB of San Francisco” or “FHLB”). 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 of San Francisco stock is carried at cost and is considered a nonmarketable equity security. Both cash and stock dividends are reported as interest income. |
Finance, Loans and Leases Receivable, Policy [Policy Text Block] | Loans Loans, net, are stated at the unpaid principal balances less the allowance for loan losses and unamortized deferred fees and costs. Loan origination fees, net of related direct costs, are deferred and accreted to interest income as an adjustment to yield over the respective maturities of the loans using the effective interest method. Interest on loans is accrued as earned on a daily basis, except where reasonable doubt exists as to the collection of interest and principal, in which case the accrual of interest is discontinued and the loan is placed on non-accrual status. Loans are placed on non-accrual at the time principal or interest is 90 days delinquent unless well secured and in the process of collection. Interest on non-accrual loans is accounted for on a cash-basis or cost-recovery method, until qualifying for return to accrual status. In order for a loan to return to accrual status, all principal and interest amounts owed must be brought current and future payments must be reasonably assured. A loan is charged-off at any time the loan is determined to be uncollectible. Collateral dependent loans, which generally include commercial real estate loans, residential loans, and construction and land loans, are typically charged down to their fair value of collateral less selling costs when a loan is impaired or on non-accrual status. All other loans are typically charged-off when, based upon current available facts and circumstances, it’s determined that either: (1) a loan is uncollectible, (2) repayment is determined to be protracted beyond a reasonable time frame, or (3) the loan is classified as a loss determined by either the Bank’s internal review process or by external examiners. Loans are considered impaired when, based upon current information and events, it is probable that the Company will be unable to collect all principal and interest amounts due according to the original contractual terms of the loan agreement on a timely basis. The Company evaluates impairment on a loan-by-loan basis. Once a loan is determined to be impaired, the impairment is measured based on the present value of the expected future cash flows discounted at the loan’s effective interest rate or by using the loan’s most recent market value or the fair value of the collateral if the loan is collateral dependent. Loans that experience insignificant payment delays or payment shortfalls are generally not considered to be impaired. When the measurement of an impaired loan is less than the recorded amount of the loan, a valuation allowance is established by recording a charge to the provision for loan losses. Subsequent increases or decreases in the valuation allowance for impaired loans are recorded by adjusting the existing valuation allowance for the impaired loan with a corresponding charge or credit to the provision for loan losses. The Company’s policy for recognizing interest income on impaired loans is the same as that for non-accrual loans. |
Loans and Leases Receivable, Troubled Debt Restructuring Policy [Policy Text Block] | Troubled Debt Restructurings In situations where, for economic or legal reasons related to a borrower’s financial difficulties, management may grant a concession for other than an insignificant period of time to the borrower that would not otherwise be considered, the related loan is classified as a troubled debt restructuring (“TDR”). Management strives to identify borrowers in financial difficulty early and work with them to modify their loans to more affordable terms before their loan reaches nonaccrual status. Concessions may include interest rate reductions or below market interest rates, principal forgiveness, restructuring amortization schedules and other actions intended to minimize potential losses. |
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | Allowance for Loan Losses The allowance for loan losses is established through a provision for loan losses charged to operations and represents an estimate of credit losses inherent in the Company’s loan portfolio that have been incurred as of the balance sheet date. Loan losses are charged against the allowance when management believes that principal is uncollectible. Subsequent repayments or recoveries, if any, are credited to the allowance. Management periodically assesses the adequacy of the allowance for loan losses by reference to many quantitative and qualitative factors that may be weighted differently at various times depending on prevailing conditions. The provisions reflect management’s evaluation of the adequacy of the allowance based, in part, upon the historical loss experience of the loan portfolio, as well as estimates from historical peer group loan loss data and the loss experience of other financial institutions, augmented by management judgment. During this process, loans are separated into the following portfolio segments: commercial loans, commercial real estate, residential, land and construction, and consumer and other loans. The relative significance of risk considerations vary by portfolio segment. For commercial loans, commercial real estate loans and land and construction, the primary risk consideration is a borrower’s ability to generate sufficient cash flows to repay their loan. Secondary considerations include the creditworthiness of guarantors and the valuation of collateral. In addition to the creditworthiness of a borrower, the type and location of real estate collateral is an important risk factor for commercial real estate and land and construction loans. The primary risk consideration for residential loans and consumer loans are a borrower’s personal cash flow and liquidity, as well as collateral value. Loss ratios for all portfolio segments are evaluated on a quarterly basis. Loss ratios associated with historical loss experience are determined based on a rolling migration analysis of each portfolio segment within the portfolio. This migration analysis estimates loss factors based on the performance of each portfolio segment over a four and a half year time period. These loss ratios are then adjusted, if determined necessary, based on other factors including, but not limited to, historical peer group loan loss data and the loss experience of other financial institutions. Management carefully monitors changing economic conditions, the concentrations of loan categories, values of collateral, the financial condition of the borrowers, the history of the loan portfolio, and historical peer group loan loss data to determine the adequacy of the allowance for loan losses. As a part of this process, management typically focuses on loan-to-value (“LTV”) percentages to assess the adequacy of loss ratios of collateral dependent loans within each portfolio segment discussed above, trends within each portfolio segment, as well as general economic and real estate market conditions where the collateral and borrower are located. For loans that are not collateral dependent, which generally consist of commercial and consumer and other loans, management typically focuses on general business conditions where the borrower operates, trends within the portfolio, and other external factors to evaluate the severity of loss factors. The allowance is based on estimates and actual losses may vary from the estimates. In addition, regulatory agencies, as a part of their examination process, periodically review the Bank’s allowance for loan losses, and may require the Bank to make additions to the allowance based on their judgment about information available to them at the time of their examinations. No assurance can be given that adverse future economic conditions will not lead to increased delinquent loans, and increases in the provision for loan losses and/or charge-offs. Management believes that the allowance as of December 31, 2015 and 2014 was adequate to absorb probable incurred credit losses inherent in the loan portfolio. |
Real Estate Owned, Valuation Allowance, Policy [Policy Text Block] | Other Real Estate Owned OREO represents real estate acquired through or in lieu of foreclosure. OREO is held for sale and is initially recorded at fair value less estimated costs of disposition at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of cost or estimated fair value less costs of disposition. OREO is included in accrued interest and other assets within the Consolidated Balance Sheets and the net operating results, if any, from OREO are recognized as non-interest expense within the Consolidated Statements of Operations and Comprehensive Income. |
Property, Plant and Equipment, Policy [Policy Text Block] | Furniture, Fixtures and Equipment, net Leasehold improvements and furniture, fixtures and equipment are carried at cost, less depreciation and amortization. Furniture, fixtures and equipment are depreciated using the straight-line method over the estimated useful life of the asset (three to ten years). Leasehold improvements are depreciated using the straight-line method over the terms of the related leases or the estimated lives of the improvements, whichever is shorter. |
Advertising Cost, Policy, Expensed Advertising Cost [Policy Text Block] | Advertising Costs Advertising costs are expensed as incurred. |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company files consolidated federal and combined state income tax returns. Income tax expense or benefit is the total of the current year income tax payable or refundable and the change in the deferred tax assets and liabilities (excluding deferred tax assets and liabilities related to components of other comprehensive income). Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax basis of assets and liabilities, computed using enacted tax rates. Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in the rates and laws. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. The Company records a valuation allowance if it believes, based on all available evidence, that it is “more likely than not” that the future tax assets will not be realized. This assessment requires management to evaluate the Company’s ability to generate sufficient future taxable income or use eligible tax carrybacks, if any, to determine the need for a valuation allowance. During the year ended December 31, 2009, management established a full valuation allowance against the Company’s deferred tax assets after we determined that it was “more likely than not” that the Company would not be able to realize the benefit of the deferred tax asset. During the year ended December 31, 2013, management reassessed the need for this valuation allowance and concluded that a valuation allowance was no longer appropriate and that it is more likely than not that these assets will be realized. As a result, management reversed the valuation allowance as an income tax benefit in the Consolidated Statements of Operations and Comprehensive Income. In making this determination, management analyzed, among other things, the Company’s recent history of earnings and cash flows, forecasts of future earnings, improvements in the credit quality of the Company’s loan portfolio, the nature and timing of future deductions and benefits represented by the deferred tax assets and our cumulative earnings for the 12 quarters preceding the reversal of this valuation allowance. At December 31, 2015 and 2014, the Company had a net deferred tax asset of approximately $4.6 million and $3.0 million, respectively. At December 31, 2015 and 2014, the Company did not have any tax benefits disallowed under accounting standards for uncertainties in income taxes. 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. If applicable, the Company has elected to record interest accrued and penalties related to unrecognized tax benefits in tax expense. See Note 16 “ Income Taxes |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. However, certain changes in assets and liabilities, such as unrealized gains and losses on Available for Sale securities, are reported as a separate component of the stockholders’ equity section of the Consolidated Balance Sheets and, along with net income, are components of comprehensive income. |
Earnings Per Share, Policy [Policy Text Block] | Earnings per Share The Company reports both basic and diluted earnings per share. Basic earnings per share is determined by dividing net income by the average number of shares of common stock outstanding, while diluted earnings per share is determined by dividing net income by the average number of shares of common stock outstanding adjusted for the dilutive effect of common stock equivalents. Potential dilutive common shares related to outstanding stock options and restricted stock are determined using the treasury stock method. For the years ended December 31, 2015 and 2014, there were 156,023 and 350,073, respectively, of stock options that were excluded from the diluted earnings per share calculation due to their antidilutive impact. For the years ended December 31, 2015 and 2014, there were 29,149 and 3,278 , respectively, of weighted average restricted shares that were excluded from the diluted earnings per share calculation due to their antidilutive impact. Years ended December 31, (dollars in thousands) 2015 2014 Net income $ 2,553 $ 2,361 Average number of common shares outstanding 9,602,008 9,431,727 Effect of dilution of stock options — 13,811 Effect of dilution of restricted stock 255,453 295,710 Average number of common shares outstanding used to calculate diluted earnings per common share 9,857,461 9,741,248 |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value of Financial Instruments The Company is required to make certain disclosures about its use of fair value measurements in the preparation of its financial statements. These standards establish a three-level hierarchy for disclosure of assets and liabilities recorded at fair value. The classification of assets and liabilities within the hierarchy is based on whether the inputs to the valuation methodology used for measurement are observable or unobservable. Observable inputs reflect market-derived or market-based information obtained from independent sources, while unobservable inputs reflect management’s estimates about market data. Level 1 Valuation is based upon quoted prices for identical instruments traded in active markets. Level 1 instruments include securities traded on active exchange markets, such as the New York Stock Exchange, as well as U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets. Level 2 Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 2 instruments include securities traded in less active dealer or broker markets. Level 3 Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation The Company has granted restricted stock awards to directors, employees, and a vendor under the 1st Century Bancshares 2005 Amended and Restated Equity Incentive Plan (the “Equity Incentive Plan”). The restricted stock awards are considered fixed awards as the number of shares and fair value is known at the date of grant and the fair value at the grant date is amortized over the vesting and/or service period. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In January 2014, the Financial Accounting Standard Board (FASB) issued Accounting Standard Update (ASU) No. 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40) – Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (ASU 2014-04). The amendments of ASU are intended to clarify when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan should be derecognized and the real estate recognized. This ASU is effective for both annual and interim periods beginning after December 15, 2014. The adoption of ASU 2014-04 did not have an impact on its financial statements and disclosures. In April 2014, the FASB issued ASU No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360) – Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (ASU 2014-08). The amendments in ASU 2014-08 change the criteria for reporting discontinued operations and improve related disclosures. This ASU also addresses sources of confusion and inconsistent application related to financial reporting of discontinued operations guidance. ASU 2014-08 will be effective for annual financial statements with fiscal years beginning on or after December 31, 2014 and interim periods thereafter. The adoption of ASU 2014-08 did not have an impact on its financial statements and disclosures. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40) (ASU 2014-15). The objective of ASU 2014-15 is to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and provide related disclosures. Currently, GAAP does not provide guidance to evaluate whether there is substantial doubt regarding an organization’s ability to continue as a going concern. This ASU provides guidance to an organization’s management, with principles and definitions to reduce diversity in the timing and content of financial statement disclosures commonly provided by organizations. ASU 2014-15 is effective for periods ending after December 15, 2016 and interim periods within annual periods beginning after December 15, 2016. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606) (ASU 2015-15). On May 28, 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606), with an original effective date for annual reporting periods beginning after December 15, 2016. The core principal of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2015- 15 deferred the effective date of ASU 2014-09 to annual periods and interim periods within those annual periods beginning after December 15, 2017. The Company is currently evaluating the effects of ASU 2015-14 on its financial statements and disclosures, if any. |
Note 1 - Summary of Significa28
Note 1 - Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Years ended December 31, (dollars in thousands) 2015 2014 Net income $ 2,553 $ 2,361 Average number of common shares outstanding 9,602,008 9,431,727 Effect of dilution of stock options — 13,811 Effect of dilution of restricted stock 255,453 295,710 Average number of common shares outstanding used to calculate diluted earnings per common share 9,857,461 9,741,248 |
Note 2 - Investment Securities
Note 2 - Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments Schedule [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value At December 31, 2015 : Investments — Available for Sale U.S. Treasuries and Government Agencies $ 34,417 $ 184 $ (2 ) $ 34,599 Residential Mortgage-Backed Securities 39,575 116 (280 ) 39,411 Total $ 73,992 $ 300 $ (282 ) $ 74,010 At December 31, 2014 : Investments — Available for Sale U.S. Treasuries and Government Agencies $ 25,973 $ 160 $ (5 ) $ 26,128 Corporate Notes 2,528 10 — 2,538 Residential Mortgage-Backed Securities 50,913 275 (165 ) 51,023 Total $ 79,414 $ 445 $ (170 ) $ 79,689 |
Available-for-sale Securities [Table Text Block] | Available for Sale 1 Year or Less Weighted Average Yield After 1 Through 5 Years Weighted Average Yield After 5 Through 10 Years Weighted Average Yield After 10 Years Weighted Average Yield Total Weighted Average Yield U.S. Treasuries and Government Agencies $ — — % $ 30,293 1.86 % $ 4,306 2.08 % $ — — % $ 34,599 1.89 % Residential Mortgage- Backed Securities — — 818 3.49 18,622 1.56 19,971 1.93 39,411 1.79 Total $ — — % $ 31,111 1.90 % $ 22,928 1.66 % $ 19,971 1.93 % $ 74,010 1.83 % |
Unrealized Gain (Loss) on Investments [Table Text Block] | Less than Twelve Months Twelve Months or More (in thousands) Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value At December 31, 2015 : Investments-Available for Sale U.S. Treasuries and Government Agencies $ (2 ) $ 3,995 $ — $ — Residential Mortgage-Backed Securities (205 ) 23,942 (75 ) 4,221 At December 31, 2014 : Investments-Available for Sale U.S. Treasuries and Government Agencies $ (5 ) $ 8,057 $ — $ — Residential Mortgage-Backed Securities (35 ) 11,694 (130 ) 17,651 |
Note 3 - Loans, Allowance for30
Note 3 - Loans, Allowance for Loan Losses, and Non-performing Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Note 3 - Loans, Allowance for Loan Losses, and Non-performing Assets (Tables) [Line Items] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | December 31, 2015 2014 (dollars in thousands) Amount Percent Amount Percent Commercial (1) $ 112,861 18.9 % $ 91,694 20.7 % Commercial real estate 259,013 43.3 % 185,752 42.0 % Residential 127,367 21.3 % 98,806 22.3 % Land and construction 59,808 10.0 % 37,075 8.4 % Consumer and other (2) 39,058 6.5 % 29,458 6.6 % Loans, gross 598,107 100.0 % 442,785 100.0 % Net deferred costs 326 71 Less — (8,961 ) (7,599 ) Loans, net $ 589,472 $ 435,257 |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | (in thousands) Commercial Commercial Real E state Residential Land and Construction Consumer and Other Total For the Year Ended December 31, 2015 : Allowance for loan losses: Beginning balance $ 1,752 $ 3,825 $ 747 $ 816 $ 459 $ 7,599 Provision for loan losses — 755 160 330 80 1,325 Charge-offs — — — — (18 ) (18 ) Recoveries 55 — — — — 55 Ending balance $ 1,807 $ 4,580 $ 907 $ 1,146 $ 521 $ 8,961 As of December 31, 2015 : Ending balance: individually evaluated for impairment $ 35 $ — $ — $ — $ — $ 35 Ending balance: collectively evaluated for impairment 1,772 4,580 907 1,146 521 8,926 Total $ 1,807 $ 4,580 $ 907 $ 1,146 $ 521 $ 8,961 Loans: Ending balance: individually evaluated for impairment $ 712 $ — $ — $ — $ 47 $ 759 Ending balance: collectively evaluated for impairment 112,149 259,013 127,367 59,808 39,011 597,348 Total $ 112,861 $ 259,013 $ 127,367 $ 59,808 $ 39,058 $ 598,107 For the Year Ended December 31, 2014 : Allowance for loan losses: Beginning balance $ 1,583 $ 3,660 $ 758 $ 811 $ 424 $ 7,236 Provision for loan losses 115 165 (220 ) 5 35 100 Charge-offs — — — — — — Recoveries 54 — 209 — — 263 Ending balance $ 1,752 $ 3,825 $ 747 $ 816 $ 459 $ 7,599 As of December 31, 2014 : Ending balance: individually evaluated for impairment $ 20 $ — $ — $ — $ — $ 20 Ending balance: collectively evaluated for impairment 1,732 3,825 747 816 459 7,579 Total $ 1,752 $ 3,825 $ 747 $ 816 $ 459 $ 7,599 Loans: Ending balance: individually evaluated for impairment $ 632 $ — $ — $ — $ 49 $ 681 Ending balance: collectively evaluated for impairment 91,062 185,752 98,806 37,075 29,409 442,104 Total $ 91,694 $ 185,752 $ 98,806 $ 37,075 $ 29,458 $ 442,785 |
Past Due Financing Receivables [Table Text Block] | (in thousands) 30-59 Days Past Due 60-89 Days Past Due > 90 Days Past Due Total Past Due Current Total As of December 31, 2015 : Commercial $ — $ — $ 712 $ 712 $ 112,149 $ 112,861 Commercial real estate — — — — 259,013 259,013 Residential — — — — 127,367 127,367 Land and construction — — — — 59,808 59,808 Consumer and other — — — — 39,058 39,058 Totals $ — $ — $ 712 $ 712 $ 597,395 $ 598,107 As of December 31, 2014 : Commercial $ — $ 60 $ 572 $ 632 $ 91,062 $ 91,694 Commercial real estate — — — — 185,752 185,752 Residential — — — — 98,806 98,806 Land and construction — — — — 37,075 37,075 Consumer and other — — — — 29,458 29,458 Totals $ — $ 60 $ 572 $ 632 $ 442,153 $ 442,785 |
Impaired Financing Receivables [Table Text Block] | (in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment As of and for the year ended December 31, 2015 : With no related allowance recorded: Commercial $ 572 $ 848 $ — $ 572 Commercial real estate — — — — Residential — — — — Land and construction — — — — Consumer and other 47 47 — 48 With an allowance recorded: Commercial $ 140 $ 155 $ 35 $ 107 Commercial real estate — — — — Residential — — — — Land and construction — — — — Consumer and other — — — — Totals: Commercial $ 712 $ 1,003 $ 35 $ 679 Commercial real estate $ — $ — $ — $ — Residential $ — $ — $ — $ — Land and construction $ — $ — $ — $ — Consumer and other $ 47 $ 47 $ — $ 48 As of and for the year ended December 31, 2014 : With no related allowance recorded: Commercial $ 572 $ 848 $ — $ 707 Commercial real estate — — — — Residential — — — — Land and construction — — — — Consumer and other 49 49 — 36 With an allowance recorded: Commercial $ 60 $ 74 $ 20 $ 106 Commercial real estate — — — — Residential — — — — Land and construction — — — — Consumer and other — — — — Totals: Commercial $ 632 $ 922 $ 20 $ 813 Commercial real estate $ — $ — $ — $ — Residential $ — $ — $ — $ — Land and construction $ — $ — $ — $ — Consumer and other $ 49 $ 49 $ — $ 36 |
Financing Receivable Credit Quality Indicators [Table Text Block] | (in thousands) Commercial Commercial Real Estate Residential Land and Construction Consumer and Other As of December 31, 2015 : Grade: Pass $ 111,970 $ 259,013 $ 127,367 $ 59,808 $ 39,011 Special Mention 179 — — — — Substandard 712 — — — 47 Total $ 112,861 $ 259,013 $ 127,367 $ 59,808 $ 39,058 As of December 31, 2014 : Grade: Pass $ 90,235 $ 185,201 $ 98,806 $ 37,075 $ 29,409 Special Mention 180 — — — — Substandard 1,279 551 — — 49 Total $ 91,694 $ 185,752 $ 98,806 $ 37,075 $ 29,458 |
Troubled Debt Restructurings on Financing Receivables [Table Text Block] | For the Years Ended December 31, 2015 2014 (dollars in thousands) Number of Loans Pre Modification Outstanding Recorded Investment Post Modification Outstanding Recorded Investment Number of Loans Pre Modification Outstanding Recorded Investment Post Modification Outstanding Recorded Investment Troubled Debt Restructurings: Commercial — $ — $ — 1 $ 50 $ 50 |
Nonaccrual Loans [Member] | |
Note 3 - Loans, Allowance for Loan Losses, and Non-performing Assets (Tables) [Line Items] | |
Impaired Financing Receivables [Table Text Block] | December 31, (dollars in thousands) 2015 2014 Non-accrual loans: Commercial $ 712 $ 632 Commercial real estate — — Land and construction — — Consumer and other — — Total non-accrual loans 712 632 OREO — — Total non-performing assets $ 712 $ 632 Non-performing assets to gross loans and OREO 0.12 % 0.14 % Non-performing assets to total assets 0.10 % 0.11 % |
Note 4 - Derivative Financial31
Note 4 - Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Note 4 - Derivative Financial Instruments (Tables) [Line Items] | |
Schedule of Derivative Instruments [Table Text Block] | December 31, 2015 December 31, 2014 (in thousands) Notional Estimated Notional Estimated Non-hedging interest rate derivatives: Commercial loan interest rate swaps $ 2,032 $ (30 ) $ 2,650 $ (23 ) Commercial loan interest rate swaps $ (2,032 ) $ 30 $ (2,650 ) $ 23 |
Non-Hedging Interest Rate Swaps [Member] | |
Note 4 - Derivative Financial Instruments (Tables) [Line Items] | |
Schedule of Derivative Instruments [Table Text Block] | December 31, 2015 Weighted-Average December 31, 2014 Weighted-Average Interest Paid Interest Interest Paid Interest Non-hedging interest rate swaps 3.68 % 4.96 % 3.37 % 4.85 % Non-hedging interest rate swaps 4.96 % 3.68 % 4.85 % 3.37 % |
Note 5 - Comprehensive Income (
Note 5 - Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Comprehensive Income (Loss) [Table Text Block] | For the Years Ended December 31, (in thousands) 2015 2014 Net income $ 2,553 $ 2,361 Other comprehensive income: Change in net unrealized (losses) gains on investment securities available for sale, net of tax (benefit) expense of ($75) and $561, respectively (107 ) 804 Reclassification for net gains included in earnings, net of tax expense of $31 and $484, respectively (44 ) (694 ) Comprehensive income $ 2,402 $ 2,471 |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | For the Years Ended December 31, (in thousands) 2015 2014 Beginning balance $ 162 $ 52 Other comprehensive (loss) income before reclassifications (107 ) 804 Amounts reclassified from accumulated other comprehensive income (44 ) (694 ) Net other comprehensive (loss) income (151 ) 110 Ending balance $ 11 $ 162 |
Note 6 - Related Party Transa33
Note 6 - Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Debt [Table Text Block] | December 31, (in thousands) 2015 2014 Beginning balance $ 2,351 $ 1,514 Disbursements 1,185 1,030 Repayments (304 ) (193 ) Ending balance $ 3,232 $ 2,351 |
Note 7 - Premises and Equipme34
Note 7 - Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | December 31, (in thousands) 2015 2014 Leasehold improvements $ 1,881 $ 1,537 Furniture & equipment 3,150 2,803 Software 871 847 Total 5,902 5,187 Accumulated depreciation (4,275 ) (3,727 ) Premises and equipment, net $ 1,627 $ 1,460 |
Note 8 - Deposits (Tables)
Note 8 - Deposits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Schedule of Deposits [Table Text Block] | December 31, 2015 December 31, 2014 (dollars in thousands) Amount Percent of Total Amount Percent of Total Non-interest bearing demand deposits $ 362,451 60.6 % $ 282,217 56.1 % Interest bearing demand deposits 32,406 5.4 % 25,492 5.1 % Money market deposits and savings 155,572 26.0 % 154,706 30.7 % Certificates of deposit 47,748 8.0 % 40,757 8.1 % Total $ 598,177 100.0 % $ 503,172 100.0 % |
Schedule of Certificates of Deposit [Table Text Block] | (dollars in thousands) Six months Greater than Greater than 0.00% to 0.99% $ 47,467 $ 184 $ 69 1.00% to 1.99% — — 28 Total $ 47,467 $ 184 $ 97 |
Note 9 - Other Borrowings (Tabl
Note 9 - Other Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract] | |
Schedule of Debt [Table Text Block] | December 31, Maturity Date Interest Rate 2015 2014 May 26, 2015 1.65% $ — $ 2,500 May 23, 2016 2.07% 2,500 2,500 December 29, 2016 1.38% 5,000 5,000 December 30, 2016 1.25% 2,500 2,500 May 2, 2018 0.93% 5,000 5,000 Total $ 15,000 $ 17,500 |
Note 10 - Commitments and Con37
Note 10 - Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Years ending December 31, 2016 $ 985 2017 1,015 2018 1,046 2019 834 2020 760 Thereafter 2,840 Total $ 7,480 |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Restricted Stock Units, Vested and Expected to Vest [Table Text Block] | Years ending December 31, 2016 $ 707 2017 525 2018 323 2019 184 2020 126 Thereafter 27 Total $ 1,892 |
Note 11 - Fair Value Measurem38
Note 11 - Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Fair Value Measurements Using (in thousands) Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) At December 31, 2015 : Investments-Available for Sale U.S. Treasuries and Government Agencies $ 34,599 $ 3,910 $ 30,689 $ — Residential Mortgage-Backed Securities 39,411 — 39,411 — Derivative Assets – 30 — 30 — Derivative Liabilities – 30 — 30 — At December 31, 2014 : Investments-Available for Sale U.S. Treasuries and Government Agencies $ 26,128 $ 3,885 $ 22,243 $ — Corporate Notes 2,538 — 2,538 — Residential Mortgage-Backed Securities 51,023 — 51,023 — Derivative Assets – 23 — 23 — Derivative Liabilities – 23 — 23 — |
Fair Value Measurements, Nonrecurring [Table Text Block] | Fair Value Measurements Using (in thousands) Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) At December 31, 2015 : Impaired loans Commercial $ 677 $ — $ — $ 677 At December 31, 2014 : Impaired loans Commercial $ 612 $ — $ — $ 612 |
Note 12 - Estimated Fair Valu39
Note 12 - Estimated Fair Value Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | Carrying Fair Value Measurements Using: (dollars in thousands) Amount Level 1 Level 2 Level 3 Total As of December 31, 2015 Assets Cash and cash equivalents $ 54,565 $ 54,565 $ — $ — $ 54,565 Investment securities 74,010 3,910 70,100 — 74,010 FRB stock 1,748 — — — N/A FHLB stock 3,167 — — — N/A Loans, net 589,472 — — 587,530 587,530 Non-hedging interest rate swaps 30 — 30 — 30 Accrued interest receivable 1,692 1,692 — — 1,692 Liabilities Non-interest bearing deposits $ 362,451 $ 362,451 $ — $ — $ 362,451 Interest bearing deposits 235,726 187,978 47,748 — 235,726 Other borrowings 65,000 — 64,983 — 64,983 Non-hedging interest rate swaps 30 — 30 — 30 Accrued interest payable 23 23 — — 23 As of December 31, 2014 Assets Cash and cash equivalents $ 58,464 $ 58,464 $ — $ — $ 58,464 Investment securities 79,689 3,885 75,804 — 79,689 FRB stock 1,655 — — — N/A FHLB stock 3,167 — — — N/A Loans, net 435,257 — — 433,588 433,588 Non-hedging interest rate swaps 23 — 23 — 23 Accrued interest receivable 1,418 1,418 — — 1,418 Liabilities Non-interest bearing deposits $ 282,217 $ 282,217 $ — $ — $ 282,217 Interest bearing deposits 220,955 180,198 40,757 — 220,955 Other borrowings 17,500 — 17,551 — 17,551 Non-hedging interest rate swaps 23 — 23 — 23 Accrued interest payable 23 23 — — 23 |
Note 13 - Non-interest Income (
Note 13 - Non-interest Income (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Schedule of Non-Interest Income [Table Text Block] | Years ended December 31, (in thousands) 2015 2014 Gain on sale of AFS investment securities $ 75 $ 1,178 Service charges and other operating income 593 533 Total non-interest income $ 668 $ 1,711 |
Note 14 - Other Operating Exp41
Note 14 - Other Operating Expenses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Schedule of Other Operating Cost and Expense, by Component [Table Text Block] | Years ended December 31, (in thousands) 2015 2014 Loan expenses $ 121 $ 85 Board of Directors fees/non-cash stock expenses 376 434 OCC assessments 166 148 Branch and production office expenses 992 777 Stationery and supplies 122 109 Insurance 82 76 Dues, memberships and subscriptions 247 202 Stockholders expense 126 128 Telephone 145 102 Delaware Franchise Tax 110 110 Provision for unfunded lending commitments 25 50 Personnel hiring expenses 69 76 Other expenses 251 238 Total other operating expenses $ 2,832 $ 2,535 |
Note 15 - Stock-based Compens42
Note 15 - Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | Years Ended December 31 , 2015 2014 Restricted Shares Number Weighted Avg Fair Value at Grant Date Number Weighted Avg Fair Value at Grant Date Beginning balance 615,875 $ 5.92 529,529 $ 4.62 Granted 218,750 6.98 228,000 7.63 Vested (164,875 ) 4.72 (141,654 ) 3.82 Forfeited and surrendered — — — — Ending balance 669,750 $ 6.56 615,875 $ 5.92 |
Schedule of Share-based Compensation, Shares Authorized Under Stock Option Plans [Table Text Block] | Shares Reserved Less Shares Previously Less Shares Total Shares 2004 Founder Stock Option Plan 150,000 121,900 — — Director and Employee Stock Option Plan 1,434,000 1,220,097 — — 2005 Equity Incentive Plan 1,200,000 944,273 243,000 — 2013 Equity Incentive Plan 750,000 20,000 426,750 303,250 |
Note 16 - Income Taxes (Tables)
Note 16 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | (in thousands) 2015 2014 Current: Federal $ 2,584 $ 1,573 State 837 263 Deferred: Federal (1,096 ) (77 ) State (377 ) 144 Income tax provision $ 1,948 $ 1,903 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2015 2014 (dollars in thousands) Amount Percent of Pretax Amount Percent of Pretax Federal income tax provision at statutory rate $ 1,530 34 % $ 1,450 34 % Changes due to: State franchise tax, net of federal income tax 327 7 % 310 7 % Other, net 91 2 % 143 4 % Total income tax provision (benefit) $ 1,948 43 % $ 1,903 45 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | (in thousands) 2015 2014 Deferred tax assets: Allowance for loan losses $ 2,344 $ 1,336 Equity compensation 927 646 Depreciation 86 96 Accrued compensation 549 390 Deferred rent 247 228 Other 578 562 Total deferred tax assets 4,731 3,258 Deferred tax liabilities: Prepaid expenses 93 93 Federal Home Loan Bank stock dividends 57 57 Net unrealized gains on investment securities 7 113 Total deferred tax liabilities 157 263 Net deferred tax assets $ 4,574 $ 2,995 |
Note 18 - Regulatory Matters (T
Note 18 - Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | Company Bank For Capital Adequacy Purp oses For the Bank to be Well Capitalized Under Prompt Corrective Measures (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2015: Total Risk-Based Capital Ratio $ 73,029 11.24 % $ 72,520 11.16 % $ 51,992 8.00 % $ 64,989 10.00 % Tier 1 Risk-Based Capital Ratio $ 64,891 9.98 % $ 64,381 9.91 % $ 38,994 6.00 % $ 51,991 8.00 % Common Equity Tier 1 Capital Ratio $ 64,891 9.98 % $ 64,381 9.91 % $ 29,245 4.50 % $ 42,243 6.50 % Tier 1 Leverage Ratio $ 64,891 9.00 % $ 64,381 8.92 % $ 28,852 4.00 % $ 36,078 5.00 % December 31, 2014: Total Risk-Based Capital Ratio $ 67,275 13.94 % $ 63,339 13.13 % $ 38,603 8.00 % $ 48,253 10.00 % Tier 1 Risk-Based Capital Ratio $ 61,220 12.69 % $ 57,284 11.87 % $ 19,302 4.00 % $ 28,952 6.00 % Tier 1 Leverage Ratio $ 61,220 10.05 % $ 57,284 9.40 % $ 24,357 4.00 % $ 30,456 5.00 % |
Note 19 - Parent Company Only45
Note 19 - Parent Company Only Condensed Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheet [Table Text Block] | (in thousands) December 31, 2015 December 31, 2014 Assets Cash and due from banks $ 535 $ 3,961 Investment in subsidiary bank 64,392 57,757 Total Assets $ 64,927 $ 61,718 Liabilities and Stockholders’ Equity Other liabilities $ 24 $ 25 Common stock 127 121 Additional paid-in capital 75,396 71,736 Retained earnings (accumulated deficit) 878 (1,675 ) Accumulated other comprehensive income 11 162 Treasury stock at cost (11,509 ) (8,651 ) Total Stockholders’ Equity 64,903 61,693 Total Liabilities and Stockholders’ Equity $ 64,927 $ 61,718 |
Condensed Income Statement [Table Text Block] | Years ended December 31, (in thousands) 2015 2014 Interest income $ — $ — Interest expense — — Net interest income — — Compensation and benefits (17 ) (33 ) Other operating expenses (19 ) (60 ) Loss before taxes (36 ) (93 ) Income tax benefit 5 — Loss before equity in undistributed income of subsidiary bank (31 ) (93 ) Equity in undistributed income of subsidiary bank 2,584 2,454 Net income $ 2,553 $ 2,361 Comprehensive income $ 2,402 $ 2,471 |
Condensed Cash Flow Statement [Table Text Block] | Years ended December, 31 (in thousands) 2015 2014 Cash flows from operating activities: Net income $ 2,553 $ 2,361 Adjustments to reconcile net income to net cash used in operations: Equity in undistributed net income of subsidiary bank (2,584 ) (2,454 ) (Decrease) increase in other liabilities (1 ) 7 Net cash used in operating activities (32 ) (86 ) Cash flows from investing activities: Investment in subsidiary bank (3,000 ) — Net cash used in investing activities (3,000 ) — Cash flows from financing activities: Proceeds from exercise of stock options 2,464 2,643 Shares surrendered on vesting and exercise of stock based compensation (2,858 ) (678 ) Net cash provided by financing activities (394 ) 1,965 Net change in cash and cash equivalents (3,426 ) 1,879 Cash and cash equivalents, beginning of year 3,961 2,082 Cash and cash equivalents, end of year $ 535 $ 3,961 |
Note 1 - Summary of Significa46
Note 1 - Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ||
Deferred Tax Assets, Net | $ 4,574,000 | $ 2,995,000 |
Unrecognized Tax Benefits | $ 0 | $ 0 |
Employee Stock Option [Member] | ||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 156,023 | 350,073 |
Restricted Stock [Member] | ||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 29,149 | 3,278 |
Minimum [Member] | ||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Minimum [Member] | Furniture and Fixtures [Member] | ||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Maximum [Member] | ||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ||
Property, Plant and Equipment, Useful Life | 10 years | |
Maximum [Member] | Furniture and Fixtures [Member] | ||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ||
Property, Plant and Equipment, Useful Life | 10 years |
Note 1 - Summary of Significa47
Note 1 - Summary of Significant Accounting Policies (Details) - Earnings Per Share - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 1 - Summary of Significant Accounting Policies (Details) - Earnings Per Share [Line Items] | ||
Net income (in Dollars) | $ 2,553 | $ 2,361 |
Average number of common shares outstanding | 9,602,008 | 9,431,727 |
Average number of common shares outstanding used to calculate diluted earnings per common share | 9,857,461 | 9,741,248 |
Employee Stock Option [Member] | ||
Note 1 - Summary of Significant Accounting Policies (Details) - Earnings Per Share [Line Items] | ||
Effect of dilution of stock | 0 | 13,811 |
Restricted Stock [Member] | ||
Note 1 - Summary of Significant Accounting Policies (Details) - Earnings Per Share [Line Items] | ||
Effect of dilution of stock | 255,453 | 295,710 |
Note 2 - Investment Securitie48
Note 2 - Investment Securities (Details) | 12 Months Ended | |
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Note 2 - Investment Securities (Details) [Line Items] | ||
Held-to-maturity Securities | $ 0 | $ 0 |
Trading Securities | 0 | 0 |
Interest-bearing Domestic Deposit, Certificates of Deposits | $ 47,748,000 | $ 40,757,000 |
Available-for-sale Securities, Weighted Average Life | 3 years 131 days | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 31 | 26 |
From California Treasurer's Office [Member] | ||
Note 2 - Investment Securities (Details) [Line Items] | ||
Available-for-sale Securities Pledged as Collateral | $ 50,600,000 | $ 41,800,000 |
Interest-bearing Domestic Deposit, Certificates of Deposits | 46,000,000 | 38,000,000 |
To California Treasurer's Office [Member] | ||
Note 2 - Investment Securities (Details) [Line Items] | ||
Available-for-sale Securities Pledged as Collateral | $ 55,900,000 | $ 48,400,000 |
Note 2 - Investment Securitie49
Note 2 - Investment Securities (Details) - Available-for-sale Securities - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Investments — Available for Sale | ||
Available for sale investments, amortized cost | $ 73,992 | $ 79,414 |
Available for sale investments, gross unrealized gains | 300 | 445 |
Available for sale investments, gross unrealized losses | (282) | (170) |
Available for sale investments, fair value | 74,010 | 79,689 |
US Treasury and Government [Member] | ||
Investments — Available for Sale | ||
Available for sale investments, amortized cost | 34,417 | 25,973 |
Available for sale investments, gross unrealized gains | 184 | 160 |
Available for sale investments, gross unrealized losses | (2) | (5) |
Available for sale investments, fair value | 34,599 | 26,128 |
Residential Mortgage Backed Securities [Member] | ||
Investments — Available for Sale | ||
Available for sale investments, amortized cost | 39,575 | 50,913 |
Available for sale investments, gross unrealized gains | 116 | 275 |
Available for sale investments, gross unrealized losses | (280) | (165) |
Available for sale investments, fair value | $ 39,411 | 51,023 |
Corporate Note Securities [Member] | ||
Investments — Available for Sale | ||
Available for sale investments, amortized cost | 2,528 | |
Available for sale investments, gross unrealized gains | 10 | |
Available for sale investments, gross unrealized losses | 0 | |
Available for sale investments, fair value | $ 2,538 |
Note 2 - Investment Securitie50
Note 2 - Investment Securities (Details) - Available-for-sale Securities by Contractual Maturity - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale investments, weighted average yield | 1.83% | |
Available for sale investments, after 1 through 5 years | $ 31,111 | |
Available for sale investments, after 5 through 10 years | 22,928 | |
Available for sale investments, after 10 years | 19,971 | |
Available for sale investments, fair value | $ 74,010 | $ 79,689 |
US Treasury and Government [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale investments, weighted average yield | 1.89% | |
Available for sale investments, after 1 through 5 years | $ 30,293 | |
Available for sale investments, after 5 through 10 years | 4,306 | |
Available for sale investments, fair value | $ 34,599 | 26,128 |
Residential Mortgage Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale investments, weighted average yield | 1.79% | |
Available for sale investments, after 1 through 5 years | $ 818 | |
Available for sale investments, after 5 through 10 years | 18,622 | |
Available for sale investments, after 10 years | 19,971 | |
Available for sale investments, fair value | $ 39,411 | $ 51,023 |
After One Through Five Years [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale investments, weighted average yield | 1.90% | |
After One Through Five Years [Member] | US Treasury and Government [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale investments, weighted average yield | 1.86% | |
After One Through Five Years [Member] | Residential Mortgage Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale investments, weighted average yield | 3.49% | |
After Five Through Ten Years [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale investments, weighted average yield | 1.66% | |
After Five Through Ten Years [Member] | US Treasury and Government [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale investments, weighted average yield | 2.08% | |
After Five Through Ten Years [Member] | Residential Mortgage Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale investments, weighted average yield | 1.56% | |
After Ten Years [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale investments, weighted average yield | 1.93% | |
After Ten Years [Member] | Residential Mortgage Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale investments, weighted average yield | 1.93% |
Note 2 - Investment Securitie51
Note 2 - Investment Securities (Details) - Securities in a Continuous Loss Position - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
US Treasury and Government [Member] | ||
Investments-Available for Sale | ||
Available for sale investments, less than twelve months, gross unrealized losses | $ (2) | $ (5) |
Available for sale investments, less than twelve months, fair value | 3,995 | 8,057 |
Available for sale investments, twelve months or more, gross unrealized losses | 0 | 0 |
Available for sale investments, twelve months or more, fair value | 0 | 0 |
Residential Mortgage Backed Securities [Member] | ||
Investments-Available for Sale | ||
Available for sale investments, less than twelve months, gross unrealized losses | (205) | (35) |
Available for sale investments, less than twelve months, fair value | 23,942 | 11,694 |
Available for sale investments, twelve months or more, gross unrealized losses | (75) | (130) |
Available for sale investments, twelve months or more, fair value | $ 4,221 | $ 17,651 |
Note 3 - Loans, Allowance for52
Note 3 - Loans, Allowance for Loan Losses, and Non-performing Assets (Details) | 12 Months Ended | |
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Note 3 - Loans, Allowance for Loan Losses, and Non-performing Assets (Details) [Line Items] | ||
Loans and Leases Receivable, Gross | $ 598,107,000 | $ 442,785,000 |
Percentage of Loan Portfolio Secured by Real Estate | 83.70% | 83.50% |
Unsecured Commercial Loan Balances | $ 34,400,000 | $ 25,100,000 |
Unsecured Consumer and Other Loan Balances | 10,600,000 | 5,100,000 |
Additions to Non-performing Loans | $ 100,000 | $ 0 |
Nonperforming Loans to Gross Loans | 0.10% | 0.10% |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | $ 0 | $ 0 |
Impaired Financing Receivable, Average Recorded Investment | 727,000 | 849,000 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 712,000 | 632,000 |
Impaired Financing Receivable, Interest Income, Accrual Method | 3,000 | 8,000 |
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down | $ 0 | $ 0 |
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 0 | 0 |
Doubtful [Member] | ||
Note 3 - Loans, Allowance for Loan Losses, and Non-performing Assets (Details) [Line Items] | ||
Loans and Leases Receivable, Gross | $ 0 | $ 0 |
Unlikely to be Collected Financing Receivable [Member] | ||
Note 3 - Loans, Allowance for Loan Losses, and Non-performing Assets (Details) [Line Items] | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Impaired Loans [Member] | ||
Note 3 - Loans, Allowance for Loan Losses, and Non-performing Assets (Details) [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 712,000 | 632,000 |
Commitments to Extend Credit [Member] | ||
Note 3 - Loans, Allowance for Loan Losses, and Non-performing Assets (Details) [Line Items] | ||
Other Commitment | 159,900,000 | 146,400,000 |
Standby Letters of Credit [Member] | ||
Note 3 - Loans, Allowance for Loan Losses, and Non-performing Assets (Details) [Line Items] | ||
Other Commitment | 3,200,000 | 2,700,000 |
Unfunded Lending Commitments [Member] | ||
Note 3 - Loans, Allowance for Loan Losses, and Non-performing Assets (Details) [Line Items] | ||
Unfunded Lending Commitments, Allowance | $ 345,000 | $ 320,000 |
Note 3 - Loans, Allowance for53
Note 3 - Loans, Allowance for Loan Losses, and Non-performing Assets (Details) - Loans Outstanding - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | $ 598,107 | $ 442,785 | ||
Loans, gross, percent of total | 100.00% | 100.00% | ||
Net deferred costs | $ 326 | $ 71 | ||
Less — allowance for loan losses | (8,961) | (7,599) | $ (7,236) | |
Loans, net | 589,472 | 435,257 | ||
Commercial Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | [1] | $ 112,861 | $ 91,694 | |
Loans, gross, percent of total | [1] | 18.90% | 20.70% | |
Less — allowance for loan losses | $ (1,807) | $ (1,752) | (1,583) | |
Commercial Real Estate Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | $ 259,013 | $ 185,752 | ||
Loans, gross, percent of total | 43.30% | 42.00% | ||
Less — allowance for loan losses | $ (4,580) | $ (3,825) | (3,660) | |
Residential Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | $ 127,367 | $ 98,806 | ||
Loans, gross, percent of total | 21.30% | 22.30% | ||
Less — allowance for loan losses | $ (907) | $ (747) | (758) | |
Land and Construction Portfolio Segment[Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | $ 59,808 | $ 37,075 | ||
Loans, gross, percent of total | 10.00% | 8.40% | ||
Less — allowance for loan losses | $ (1,146) | $ (816) | (811) | |
Consumer and Other Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | [2] | $ 39,058 | $ 29,458 | |
Loans, gross, percent of total | [2] | 6.50% | 6.60% | |
Less — allowance for loan losses | $ (521) | $ (459) | $ (424) | |
[1] | Unsecured commercial loan balances were $34.4 million and $25.1 million at December 31, 2015 and 2014, respectively. | |||
[2] | Unsecured consumer and other loan balances were $10.6 million and $5.1 million at December 31, 2015 and 2014, respectively. |
Note 3 - Loans, Allowance for54
Note 3 - Loans, Allowance for Loan Losses, and Non-performing Assets (Details) - Activities in Allowance for Loan Losses and Recorded Investment in Loans - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for loan losses: | ||||
Beginning balance | $ 7,599 | $ 7,236 | ||
Provision for loan losses | 1,325 | 100 | ||
Charge-offs | (18) | 0 | ||
Recoveries | 55 | 263 | ||
Ending balance | 8,961 | 7,599 | ||
As of December 31, 2015: | ||||
Ending balance: individually evaluated for impairment | $ 35 | $ 20 | ||
Ending balance: collectively evaluated for impairment | 8,926 | 7,579 | ||
Total | 8,961 | 7,599 | 8,961 | 7,599 |
Loans: | ||||
Ending balance: individually evaluated for impairment | 759 | 681 | ||
Ending balance: collectively evaluated for impairment | 597,348 | 442,104 | ||
Financing Receivable-Total | 598,107 | 442,785 | ||
Commercial Portfolio Segment [Member] | ||||
Allowance for loan losses: | ||||
Beginning balance | 1,752 | 1,583 | ||
Provision for loan losses | 0 | 115 | ||
Charge-offs | 0 | 0 | ||
Recoveries | 55 | 54 | ||
Ending balance | 1,807 | 1,752 | ||
As of December 31, 2015: | ||||
Ending balance: individually evaluated for impairment | 35 | 20 | ||
Ending balance: collectively evaluated for impairment | 1,772 | 1,732 | ||
Total | 1,752 | 1,752 | 1,807 | 1,752 |
Loans: | ||||
Ending balance: individually evaluated for impairment | 712 | 632 | ||
Ending balance: collectively evaluated for impairment | 112,149 | 91,062 | ||
Financing Receivable-Total | 112,861 | 91,694 | ||
Commercial Real Estate Portfolio Segment [Member] | ||||
Allowance for loan losses: | ||||
Beginning balance | 3,825 | 3,660 | ||
Provision for loan losses | 755 | 165 | ||
Charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Ending balance | 4,580 | 3,825 | ||
As of December 31, 2015: | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | ||
Ending balance: collectively evaluated for impairment | 4,580 | 3,825 | ||
Total | 3,825 | 3,825 | 4,580 | 3,825 |
Loans: | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | ||
Ending balance: collectively evaluated for impairment | 259,013 | 185,752 | ||
Financing Receivable-Total | 259,013 | 185,752 | ||
Residential Portfolio Segment [Member] | ||||
Allowance for loan losses: | ||||
Beginning balance | 747 | 758 | ||
Provision for loan losses | 160 | (220) | ||
Charge-offs | 0 | 0 | ||
Recoveries | 0 | 209 | ||
Ending balance | 907 | 747 | ||
As of December 31, 2015: | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | ||
Ending balance: collectively evaluated for impairment | 907 | 747 | ||
Total | 747 | 747 | 907 | 747 |
Loans: | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | ||
Ending balance: collectively evaluated for impairment | 127,367 | 98,806 | ||
Financing Receivable-Total | 127,367 | 98,806 | ||
Land and Construction Portfolio Segment[Member] | ||||
Allowance for loan losses: | ||||
Beginning balance | 816 | 811 | ||
Provision for loan losses | 330 | 5 | ||
Charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Ending balance | 1,146 | 816 | ||
As of December 31, 2015: | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | ||
Ending balance: collectively evaluated for impairment | 1,146 | 816 | ||
Total | 816 | 816 | 1,146 | 816 |
Loans: | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | ||
Ending balance: collectively evaluated for impairment | 59,808 | 37,075 | ||
Financing Receivable-Total | 59,808 | 37,075 | ||
Consumer and Other Portfolio Segment [Member] | ||||
Allowance for loan losses: | ||||
Beginning balance | 459 | 424 | ||
Provision for loan losses | 80 | 35 | ||
Charge-offs | (18) | 0 | ||
Recoveries | 0 | 0 | ||
Ending balance | 521 | 459 | ||
As of December 31, 2015: | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | ||
Ending balance: collectively evaluated for impairment | 521 | 459 | ||
Total | $ 459 | $ 459 | 521 | 459 |
Loans: | ||||
Ending balance: individually evaluated for impairment | 47 | 49 | ||
Ending balance: collectively evaluated for impairment | 39,011 | 29,409 | ||
Financing Receivable-Total | $ 39,058 | $ 29,458 |
Note 3 - Loans, Allowance for55
Note 3 - Loans, Allowance for Loan Losses, and Non-performing Assets (Details) - Aging Analysis of Past Due Loans - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable-Past Due | $ 712 | $ 632 |
Financing Receivable-Current | 597,395 | 442,153 |
Financing Receivable-Total | 598,107 | 442,785 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable-Past Due | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable-Past Due | 0 | 60 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable-Past Due | 712 | 572 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable-Past Due | 712 | 632 |
Financing Receivable-Current | 112,149 | 91,062 |
Financing Receivable-Total | 112,861 | 91,694 |
Commercial Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable-Past Due | 0 | 0 |
Commercial Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable-Past Due | 0 | 60 |
Commercial Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable-Past Due | 712 | 572 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable-Past Due | 0 | 0 |
Financing Receivable-Current | 259,013 | 185,752 |
Financing Receivable-Total | 259,013 | 185,752 |
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable-Past Due | 0 | 0 |
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable-Past Due | 0 | 0 |
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable-Past Due | 0 | 0 |
Residential Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable-Past Due | 0 | 0 |
Financing Receivable-Current | 127,367 | 98,806 |
Financing Receivable-Total | 127,367 | 98,806 |
Residential Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable-Past Due | 0 | 0 |
Residential Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable-Past Due | 0 | 0 |
Residential Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable-Past Due | 0 | 0 |
Land and Construction Portfolio Segment[Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable-Past Due | 0 | 0 |
Financing Receivable-Current | 59,808 | 37,075 |
Financing Receivable-Total | 59,808 | 37,075 |
Land and Construction Portfolio Segment[Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable-Past Due | 0 | 0 |
Land and Construction Portfolio Segment[Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable-Past Due | 0 | 0 |
Land and Construction Portfolio Segment[Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable-Past Due | 0 | 0 |
Consumer and Other Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable-Past Due | 0 | 0 |
Financing Receivable-Current | 39,058 | 29,458 |
Financing Receivable-Total | 39,058 | 29,458 |
Consumer and Other Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable-Past Due | 0 | 0 |
Consumer and Other Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable-Past Due | 0 | 0 |
Consumer and Other Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable-Past Due | $ 0 | $ 0 |
Note 3 - Loans, Allowance for56
Note 3 - Loans, Allowance for Loan Losses, and Non-performing Assets (Details) - Nonaccrual Loans and Other Real Estate Owned - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Non-accrual loans: | ||
Non-accrual loans | $ 712 | $ 632 |
Total non-performing assets | $ 712 | $ 632 |
Non-performing assets to gross loans and OREO | 0.12% | 0.14% |
Non-performing assets to total assets | 0.10% | 0.11% |
Commercial Portfolio Segment [Member] | ||
Non-accrual loans: | ||
Non-accrual loans | $ 712 | $ 632 |
Note 3 - Loans, Allowance for57
Note 3 - Loans, Allowance for Loan Losses, and Non-performing Assets (Details) - Credit Exposure by Internally Assigned Grades - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Grade: | ||
Loans | $ 598,107 | $ 442,785 |
Commercial Portfolio Segment [Member] | ||
Grade: | ||
Loans | 112,861 | 91,694 |
Commercial Portfolio Segment [Member] | Pass [Member] | ||
Grade: | ||
Loans | 111,970 | 90,235 |
Commercial Portfolio Segment [Member] | Special Mention [Member] | ||
Grade: | ||
Loans | 179 | 180 |
Commercial Portfolio Segment [Member] | Substandard [Member] | ||
Grade: | ||
Loans | 712 | 1,279 |
Commercial Real Estate Portfolio Segment [Member] | ||
Grade: | ||
Loans | 259,013 | 185,752 |
Commercial Real Estate Portfolio Segment [Member] | Pass [Member] | ||
Grade: | ||
Loans | 259,013 | 185,201 |
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member] | ||
Grade: | ||
Loans | 0 | 0 |
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member] | ||
Grade: | ||
Loans | 0 | 551 |
Residential Portfolio Segment [Member] | ||
Grade: | ||
Loans | 127,367 | 98,806 |
Residential Portfolio Segment [Member] | Pass [Member] | ||
Grade: | ||
Loans | 127,367 | 98,806 |
Residential Portfolio Segment [Member] | Special Mention [Member] | ||
Grade: | ||
Loans | 0 | 0 |
Residential Portfolio Segment [Member] | Substandard [Member] | ||
Grade: | ||
Loans | 0 | 0 |
Land and Construction Portfolio Segment[Member] | ||
Grade: | ||
Loans | 59,808 | 37,075 |
Land and Construction Portfolio Segment[Member] | Pass [Member] | ||
Grade: | ||
Loans | 59,808 | 37,075 |
Land and Construction Portfolio Segment[Member] | Special Mention [Member] | ||
Grade: | ||
Loans | 0 | 0 |
Land and Construction Portfolio Segment[Member] | Substandard [Member] | ||
Grade: | ||
Loans | 0 | 0 |
Consumer and Other Portfolio Segment [Member] | ||
Grade: | ||
Loans | 39,058 | 29,458 |
Consumer and Other Portfolio Segment [Member] | Pass [Member] | ||
Grade: | ||
Loans | 39,011 | 29,409 |
Consumer and Other Portfolio Segment [Member] | Special Mention [Member] | ||
Grade: | ||
Loans | 0 | 0 |
Consumer and Other Portfolio Segment [Member] | Substandard [Member] | ||
Grade: | ||
Loans | $ 47 | $ 49 |
Note 3 - Loans, Allowance for58
Note 3 - Loans, Allowance for Loan Losses, and Non-performing Assets (Details) - Impaired Loans - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Totals: | ||
Impaired loans - average recorded investment | $ 727,000 | $ 849,000 |
Commercial Portfolio Segment [Member] | ||
With no related allowance recorded: | ||
Impaired loans no related allowance - recorded investment | 572,000 | 572,000 |
Impaired loans no related allowance - unpaid principal balance | 848,000 | 848,000 |
Impaired loans no related allowance - average recorded investment | 572,000 | 707,000 |
With an allowance recorded: | ||
Impaired loans related allowance - recorded investment | 140,000 | 60,000 |
Impaired loans related allowance - unpaid principal balance | 155,000 | 74,000 |
Impaired loans - related allowance | 35,000 | 20,000 |
Impaired loans related allowance - average recorded investment | 107,000 | 106,000 |
Totals: | ||
Impaired loans - recorded investment | 712,000 | 632,000 |
Impaired loans - unpaid principal balance | 1,003,000 | 922,000 |
Impaired loans - related allowance | 35,000 | 20,000 |
Impaired loans - average recorded investment | 679,000 | 813,000 |
Commercial Real Estate Portfolio Segment [Member] | ||
With no related allowance recorded: | ||
Impaired loans no related allowance - recorded investment | 0 | 0 |
Impaired loans no related allowance - unpaid principal balance | 0 | 0 |
Impaired loans no related allowance - average recorded investment | 0 | 0 |
With an allowance recorded: | ||
Impaired loans related allowance - recorded investment | 0 | 0 |
Impaired loans related allowance - unpaid principal balance | 0 | 0 |
Impaired loans - related allowance | 0 | 0 |
Impaired loans related allowance - average recorded investment | 0 | 0 |
Totals: | ||
Impaired loans - recorded investment | 0 | 0 |
Impaired loans - unpaid principal balance | 0 | 0 |
Impaired loans - related allowance | 0 | 0 |
Impaired loans - average recorded investment | 0 | 0 |
Residential Portfolio Segment [Member] | ||
With no related allowance recorded: | ||
Impaired loans no related allowance - recorded investment | 0 | 0 |
Impaired loans no related allowance - unpaid principal balance | 0 | 0 |
Impaired loans no related allowance - average recorded investment | 0 | 0 |
With an allowance recorded: | ||
Impaired loans related allowance - recorded investment | 0 | 0 |
Impaired loans related allowance - unpaid principal balance | 0 | 0 |
Impaired loans - related allowance | 0 | 0 |
Impaired loans related allowance - average recorded investment | 0 | 0 |
Totals: | ||
Impaired loans - recorded investment | 0 | 0 |
Impaired loans - unpaid principal balance | 0 | 0 |
Impaired loans - related allowance | 0 | 0 |
Impaired loans - average recorded investment | 0 | 0 |
Land and Construction Portfolio Segment[Member] | ||
With no related allowance recorded: | ||
Impaired loans no related allowance - recorded investment | 0 | 0 |
Impaired loans no related allowance - unpaid principal balance | 0 | 0 |
Impaired loans no related allowance - average recorded investment | 0 | 0 |
With an allowance recorded: | ||
Impaired loans related allowance - recorded investment | 0 | 0 |
Impaired loans related allowance - unpaid principal balance | 0 | 0 |
Impaired loans - related allowance | 0 | 0 |
Impaired loans related allowance - average recorded investment | 0 | 0 |
Totals: | ||
Impaired loans - recorded investment | 0 | 0 |
Impaired loans - unpaid principal balance | 0 | 0 |
Impaired loans - related allowance | 0 | 0 |
Impaired loans - average recorded investment | 0 | 0 |
Consumer and Other Portfolio Segment [Member] | ||
With no related allowance recorded: | ||
Impaired loans no related allowance - recorded investment | 47,000 | 49,000 |
Impaired loans no related allowance - unpaid principal balance | 47,000 | 49,000 |
Impaired loans no related allowance - average recorded investment | 48,000 | 36,000 |
With an allowance recorded: | ||
Impaired loans related allowance - recorded investment | 0 | 0 |
Impaired loans related allowance - unpaid principal balance | 0 | 0 |
Impaired loans - related allowance | 0 | 0 |
Impaired loans related allowance - average recorded investment | 0 | 0 |
Totals: | ||
Impaired loans - recorded investment | 47,000 | 49,000 |
Impaired loans - unpaid principal balance | 47,000 | 49,000 |
Impaired loans - related allowance | 0 | 0 |
Impaired loans - average recorded investment | $ 48,000 | $ 36,000 |
Note 3 - Loans, Allowance for59
Note 3 - Loans, Allowance for Loan Losses, and Non-performing Assets (Details) - Troubled Debt Restructurings - Consumer Portfolio Segment [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2014USD ($) | |
Troubled Debt Restructurings: | |
Commercial | 1 |
Commercial | $ 50 |
Commercial | $ 50 |
Note 4 - Derivative Financial60
Note 4 - Derivative Financial Instruments (Details) - Interest Rate Derivative Contracts - Commercial Loan Interest Rate Swaps [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Non-hedging interest rate derivatives: | ||
Commercial loan interest rate swaps | $ 2,032 | $ 2,650 |
Commercial loan interest rate swaps | (30) | (23) |
Commercial loan interest rate swaps | (2,032) | (2,650) |
Commercial loan interest rate swaps | $ 30 | $ 23 |
Note 4 - Derivative Financial61
Note 4 - Derivative Financial Instruments (Details) - Weighted Average Interest Rates on Interest Rate Swaps | Dec. 31, 2015 | Dec. 31, 2014 |
Non-Hedging Interest Rate Swap 1 [Member] | ||
Derivative [Line Items] | ||
Derivative interest rate paid | 3.68% | 3.37% |
Derivative interest rate received | 4.96% | 4.85% |
Non-Hedging Interest Rate Swap 2 [Member] | ||
Derivative [Line Items] | ||
Derivative interest rate paid | 4.96% | 4.85% |
Derivative interest rate received | 3.68% | 3.37% |
Note 5 - Comprehensive Income62
Note 5 - Comprehensive Income (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Non Interest Income [Member] | ||
Note 5 - Comprehensive Income (Details) [Line Items] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | $ 75,000 | $ 1,200,000 |
Income Tax Provision [Member] | ||
Note 5 - Comprehensive Income (Details) [Line Items] | ||
Other Comprehensive Income (Loss), Tax | $ 31,000 | $ 484,000 |
Note 5 - Comprehensive Income63
Note 5 - Comprehensive Income (Details) - Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Comprehensive Income [Abstract] | ||
Net income | $ 2,553 | $ 2,361 |
Other comprehensive income: | ||
Change in net unrealized (losses) gains on investment securities available for sale, net of tax (benefit) expense of ($75) and $561, respectively | (107) | 804 |
Reclassification for net gains included in earnings, net of tax expense of $31 and $484, respectively | (44) | (694) |
Comprehensive income | $ 2,402 | $ 2,471 |
Note 5 - Comprehensive Income64
Note 5 - Comprehensive Income (Details) - Comprehensive Income (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Comprehensive Income [Abstract] | ||
Net unrealized gains on investment securities available for sale, tax benefit (expense) | $ (75) | $ 561 |
Reclassification for net gains included in earnings, tax | $ 31 | $ 484 |
Note 5 - Comprehensive Income65
Note 5 - Comprehensive Income (Details) - Accumulated Other Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income [Abstract] | ||
Beginning balance | $ 162 | $ 52 |
Other comprehensive (loss) income before reclassifications | (107) | 804 |
Amounts reclassified from accumulated other comprehensive income | (44) | (694) |
Net other comprehensive (loss) income | (151) | 110 |
Ending balance | $ 11 | $ 162 |
Note 6 - Related Party Transa66
Note 6 - Related Party Transactions (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Note 6 - Related Party Transactions (Details) [Line Items] | ||
Deposits | $ 598,177 | $ 503,172 |
Loan Commitments to Officers and Directors [Member] | ||
Note 6 - Related Party Transactions (Details) [Line Items] | ||
Other Commitment | 3,600 | 3,100 |
Officers and Directors [Member] | ||
Note 6 - Related Party Transactions (Details) [Line Items] | ||
Due to Related Parties | 3,200 | 2,400 |
Deposits | $ 9,300 | $ 8,500 |
Note 6 - Related Party Transa67
Note 6 - Related Party Transactions (Details) - Related Party Loan Activities - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Loan Activities [Abstract] | ||
Beginning balance | $ 2,351 | $ 1,514 |
Disbursements | 1,185 | 1,030 |
Repayments | (304) | (193) |
Ending balance | $ 3,232 | $ 2,351 |
Note 7 - Premises and Equipme68
Note 7 - Premises and Equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 7 - Premises and Equipment (Details) [Line Items] | ||
Depreciation, Depletion and Amortization | $ 577,000 | $ 491,000 |
Minimum [Member] | ||
Note 7 - Premises and Equipment (Details) [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Maximum [Member] | ||
Note 7 - Premises and Equipment (Details) [Line Items] | ||
Property, Plant and Equipment, Useful Life | 10 years |
Note 7 - Premises and Equipme69
Note 7 - Premises and Equipment (Details) - Premises and Equipment - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | $ 5,902 | $ 5,187 |
Accumulated depreciation | (4,275) | (3,727) |
Premises and equipment, net | 1,627 | 1,460 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | 1,881 | 1,537 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | 3,150 | 2,803 |
Software and Software Development Costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | $ 871 | $ 847 |
Note 8 - Deposits (Details)
Note 8 - Deposits (Details) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Note 8 - Deposits (Details) [Line Items] | ||
Interest-bearing Domestic Deposit, Certificates of Deposits | $ 47,748,000 | $ 40,757,000 |
Percentage of Interest-bearing Domestic Deposits to Deposits, Certificates of Deposit | 8.00% | 8.10% |
Time Deposit of 250000 or Greater | $ 46,505,000 | $ 38,572,000 |
Contractual Maturities, Time Deposits, $250,000 or More, Six Months or Less | 46,500,000 | |
Contractual Maturities, Time Deposits, $250,000 or More, Six Months Through 12 Months | 0 | |
Contractual Maturities, Time Deposits, $250,000 or More, after 12 Months | $ 0 | |
From California Treasurer's Office [Member] | ||
Note 8 - Deposits (Details) [Line Items] | ||
Number of Deposits | 2 | 2 |
Interest-bearing Domestic Deposit, Certificates of Deposits | $ 46,000,000 | $ 38,000,000 |
Percentage of Interest-bearing Domestic Deposits to Deposits, Certificates of Deposit | 7.70% | 7.60% |
Available-for-sale Securities Pledged as Collateral | $ 50,600,000 | $ 41,800,000 |
CDARS Deposit [Member] | ||
Note 8 - Deposits (Details) [Line Items] | ||
Interest-bearing Domestic Deposit, Certificates of Deposits | $ 505,000 | $ 505,000 |
Percentage of Interest-bearing Domestic Deposits to Deposits, Certificates of Deposit | 0.10% | 0.10% |
Note 8 - Deposits (Details) - D
Note 8 - Deposits (Details) - Deposits by Category - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deposits by Category [Abstract] | ||
Non-interest bearing demand deposits | $ 362,451 | $ 282,217 |
Non-interest bearing demand deposits | 60.60% | 56.10% |
Interest bearing demand deposits | $ 32,406 | $ 25,492 |
Interest bearing demand deposits | 5.40% | 5.10% |
Money market deposits and savings | $ 155,572 | $ 154,706 |
Money market deposits and savings | 26.00% | 30.70% |
Certificates of deposit | $ 47,748 | $ 40,757 |
Certificates of deposit | 8.00% | 8.10% |
Total | $ 598,177 | $ 503,172 |
Total | 100.00% | 100.00% |
Note 8 - Deposits (Details) - C
Note 8 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Note 8 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity [Line Items] | ||
Certificates of deposit | $ 47,748 | $ 40,757 |
Minimum [Member] | Range 1 [Member] | ||
Note 8 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity [Line Items] | ||
Interest rates | 0.00% | |
Minimum [Member] | Range 2 [Member] | ||
Note 8 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity [Line Items] | ||
Interest rates | 1.00% | |
Maximum [Member] | Range 1 [Member] | ||
Note 8 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity [Line Items] | ||
Interest rates | 0.99% | |
Maximum [Member] | Range 2 [Member] | ||
Note 8 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity [Line Items] | ||
Interest rates | 1.99% | |
Six Months and Less [Member] | ||
Note 8 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity [Line Items] | ||
Certificates of deposit | $ 47,467 | |
Six Months and Less [Member] | Range 1 [Member] | ||
Note 8 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity [Line Items] | ||
Certificates of deposit | 47,467 | |
Six Months and Less [Member] | Range 2 [Member] | ||
Note 8 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity [Line Items] | ||
Certificates of deposit | 0 | |
Greater Than Six Months Through One Year [Member] | ||
Note 8 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity [Line Items] | ||
Certificates of deposit | 184 | |
Greater Than Six Months Through One Year [Member] | Range 1 [Member] | ||
Note 8 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity [Line Items] | ||
Certificates of deposit | 184 | |
Greater Than Six Months Through One Year [Member] | Range 2 [Member] | ||
Note 8 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity [Line Items] | ||
Certificates of deposit | 0 | |
Greater Than One Year [Member] | ||
Note 8 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity [Line Items] | ||
Certificates of deposit | 97 | |
Greater Than One Year [Member] | Range 1 [Member] | ||
Note 8 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity [Line Items] | ||
Certificates of deposit | 69 | |
Greater Than One Year [Member] | Range 2 [Member] | ||
Note 8 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity [Line Items] | ||
Certificates of deposit | $ 28 |
Note 9 - Other Borrowings (Deta
Note 9 - Other Borrowings (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
FHLB [Member] | ||
Note 9 - Other Borrowings (Details) [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 180,000,000 | $ 146,000,000 |
Long-term Federal Home Loan Bank Advances, Noncurrent | 15,000,000 | 17,500,000 |
Short-Term Overnight Borrowing [Member] | ||
Note 9 - Other Borrowings (Details) [Line Items] | ||
Long-term Line of Credit | $ 50,000,000 | 0 |
Debt Instrument, Interest Rate, Stated Percentage | 0.27% | |
Federal Line of Credit [Member] | ||
Note 9 - Other Borrowings (Details) [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 27,000,000 | |
Long-term Line of Credit | 0 | 0 |
Federal Line of Credit [Member] | Corporate Note Securities [Member] | ||
Note 9 - Other Borrowings (Details) [Line Items] | ||
Available-for-sale Securities Pledged as Collateral | $ 2,300,000 | $ 2,500,000 |
Note 9 - Other Borrowings (De74
Note 9 - Other Borrowings (Details) - Long-term Borrowings - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Note 9 - Other Borrowings (Details) - Long-term Borrowings [Line Items] | ||
FHLB outstanding balance | $ 15,000 | $ 17,500 |
May 26, 2015 Maturity Date [Member] | ||
Note 9 - Other Borrowings (Details) - Long-term Borrowings [Line Items] | ||
FHLB interest rate | 1.65% | |
FHLB outstanding balance | $ 0 | 2,500 |
May 23, 2016 Maturity Date [Member] | ||
Note 9 - Other Borrowings (Details) - Long-term Borrowings [Line Items] | ||
FHLB interest rate | 2.07% | |
FHLB outstanding balance | $ 2,500 | 2,500 |
December 29, 2016 Maturity Date [Member] | ||
Note 9 - Other Borrowings (Details) - Long-term Borrowings [Line Items] | ||
FHLB interest rate | 1.38% | |
FHLB outstanding balance | $ 5,000 | 5,000 |
December 30, 2016 Maturity Date [Member] | ||
Note 9 - Other Borrowings (Details) - Long-term Borrowings [Line Items] | ||
FHLB interest rate | 1.25% | |
FHLB outstanding balance | $ 2,500 | 2,500 |
May 2, 2018 Maturity Date [Member] | ||
Note 9 - Other Borrowings (Details) - Long-term Borrowings [Line Items] | ||
FHLB interest rate | 0.93% | |
FHLB outstanding balance | $ 5,000 | $ 5,000 |
Note 10 - Commitments and Con75
Note 10 - Commitments and Contingencies (Details) | 12 Months Ended | |
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Note 10 - Commitments and Contingencies (Details) [Line Items] | ||
Operating Leases, Number | 3 | |
Operating Leases, Rent Expense | $ 1,100,000 | $ 951,000 |
Estimated Litigation Liability | 0 | 0 |
Credit Cards [Member] | ||
Note 10 - Commitments and Contingencies (Details) [Line Items] | ||
Other Commitment | 82,000 | 136,000 |
Commitments to Extend Credit [Member] | ||
Note 10 - Commitments and Contingencies (Details) [Line Items] | ||
Other Commitment | 159,900,000 | 146,400,000 |
Standby Letters of Credit [Member] | ||
Note 10 - Commitments and Contingencies (Details) [Line Items] | ||
Other Commitment | $ 3,200,000 | $ 2,700,000 |
Note 10 - Commitments and Con76
Note 10 - Commitments and Contingencies (Details) - Minimum Future Rental Payments $ in Thousands | Dec. 31, 2015USD ($) |
Minimum Future Rental Payments [Abstract] | |
2,016 | $ 985 |
2,017 | 1,015 |
2,018 | 1,046 |
2,019 | 834 |
2,020 | 760 |
Thereafter | 2,840 |
Total | $ 7,480 |
Note 10 - Commitments and Con77
Note 10 - Commitments and Contingencies (Details) - Future Restricted Stock Expense $ in Thousands | Dec. 31, 2015USD ($) |
Future Restricted Stock Expense [Abstract] | |
2,016 | $ 707 |
2,017 | 525 |
2,018 | 323 |
2,019 | 184 |
2,020 | 126 |
Thereafter | 27 |
Total | $ 1,892 |
Note 11 - Fair Value Measurem78
Note 11 - Fair Value Measurements (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 11 - Fair Value Measurements (Details) [Line Items] | ||
Available-for-sale Securities | $ 74,010,000 | $ 79,689,000 |
Available-for-sale Securities, Weighted Average Life | 3 years 131 days | |
Financing Receivable, Allowance for Credit Losses, Net Recovery | $ 37,000 | $ 263,000 |
Residential Mortgage Backed Securities [Member] | ||
Note 11 - Fair Value Measurements (Details) [Line Items] | ||
Available-for-sale Securities, Weighted Average Interest Rate | 1.79% | 1.82% |
Available-for-sale Securities, Weighted Average Life | 3 years 131 days | 3 years 233 days |
Fair Value, Inputs, Level 2 [Member] | ||
Note 11 - Fair Value Measurements (Details) [Line Items] | ||
Available-for-sale Securities | $ 70,100,000 | $ 75,804,000 |
Fair Value, Inputs, Level 2 [Member] | Residential Mortgage Backed Securities [Member] | ||
Note 11 - Fair Value Measurements (Details) [Line Items] | ||
Available-for-sale Securities | $ 39,400,000 | $ 51,000,000 |
Note 11 - Fair Value Measurem79
Note 11 - Fair Value Measurements (Details) - Assets and Liabilities Measured on Recurring Basis - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Investments-Available for Sale | ||
Derivative assets – interest rate swaps | $ 30 | $ 23 |
Derivative liabilities – interest rate swaps | 30 | 23 |
US Government Agencies Debt Securities [Member] | ||
Investments-Available for Sale | ||
Available for sale investments | 34,599 | 26,128 |
Residential Mortgage Backed Securities [Member] | ||
Investments-Available for Sale | ||
Available for sale investments | 39,411 | 51,023 |
Corporate Note Securities [Member] | ||
Investments-Available for Sale | ||
Available for sale investments | 2,538 | |
Fair Value, Inputs, Level 1 [Member] | ||
Investments-Available for Sale | ||
Derivative assets – interest rate swaps | 0 | 0 |
Derivative liabilities – interest rate swaps | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | US Government Agencies Debt Securities [Member] | ||
Investments-Available for Sale | ||
Available for sale investments | 3,910 | 3,885 |
Fair Value, Inputs, Level 1 [Member] | Residential Mortgage Backed Securities [Member] | ||
Investments-Available for Sale | ||
Available for sale investments | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Corporate Note Securities [Member] | ||
Investments-Available for Sale | ||
Available for sale investments | 0 | |
Fair Value, Inputs, Level 2 [Member] | ||
Investments-Available for Sale | ||
Derivative assets – interest rate swaps | 30 | 23 |
Derivative liabilities – interest rate swaps | 30 | 23 |
Fair Value, Inputs, Level 2 [Member] | US Government Agencies Debt Securities [Member] | ||
Investments-Available for Sale | ||
Available for sale investments | 30,689 | 22,243 |
Fair Value, Inputs, Level 2 [Member] | Residential Mortgage Backed Securities [Member] | ||
Investments-Available for Sale | ||
Available for sale investments | 39,411 | 51,023 |
Fair Value, Inputs, Level 2 [Member] | Corporate Note Securities [Member] | ||
Investments-Available for Sale | ||
Available for sale investments | 2,538 | |
Fair Value, Inputs, Level 3 [Member] | ||
Investments-Available for Sale | ||
Derivative assets – interest rate swaps | 0 | 0 |
Derivative liabilities – interest rate swaps | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | US Government Agencies Debt Securities [Member] | ||
Investments-Available for Sale | ||
Available for sale investments | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Residential Mortgage Backed Securities [Member] | ||
Investments-Available for Sale | ||
Available for sale investments | $ 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Corporate Note Securities [Member] | ||
Investments-Available for Sale | ||
Available for sale investments | $ 0 |
Note 11 - Fair Value Measurem80
Note 11 - Fair Value Measurements (Details) - Assets Measured on Non-Recurring Basis - Impaired Loans [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Impaired loans | ||
Asset measured on a nonrecurring basis | $ 677 | $ 612 |
Fair Value, Inputs, Level 3 [Member] | ||
Impaired loans | ||
Asset measured on a nonrecurring basis | $ 677 | $ 612 |
Note 12 - Estimated Fair Valu81
Note 12 - Estimated Fair Value Information (Details) - Financial Instruments - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets | |||
Cash and cash equivalents | $ 54,565 | $ 58,464 | $ 44,688 |
Cash and cash equivalents, fair value | 54,565 | 58,464 | |
Available for sale investments, fair value | 74,010 | 79,689 | |
FRB stock | $ 1,748 | $ 1,655 | |
FRB stock, fair value | |||
FHLB stock | $ 3,167 | $ 3,167 | |
FHLB stock, fair value | |||
Loans, net | $ 589,472 | $ 435,257 | |
Loans, net, fair value | 587,530 | 433,588 | |
Non-hedging interest rate swaps | 30 | 23 | |
Non-hedging interest rate swaps, fair value | 30 | 23 | |
Accrued interest receivable | 1,692 | 1,418 | |
Accrued interest receivable, fair value | 1,692 | 1,418 | |
Liabilities | |||
Deposits | 598,177 | 503,172 | |
Other borrowings | 65,000 | 17,500 | |
Other borrowings, fair value | 64,983 | 17,551 | |
Accrued interest payable | 23 | 23 | |
Accrued interest payable, fair value | 23 | 23 | |
Non-Interest Bearing Deposit Liabilities [Member] | |||
Liabilities | |||
Deposits | 362,451 | 282,217 | |
Deposits, fair value | 362,451 | 282,217 | |
Interest Bearing Deposit Liabilities [Member] | |||
Liabilities | |||
Deposits | 235,726 | 220,955 | |
Deposits, fair value | 235,726 | 220,955 | |
Fair Value, Inputs, Level 1 [Member] | |||
Assets | |||
Cash and cash equivalents, fair value | 54,565 | 58,464 | |
Available for sale investments, fair value | 3,910 | 3,885 | |
Accrued interest receivable | 1,692 | 1,418 | |
Accrued interest receivable, fair value | 1,692 | 1,418 | |
Liabilities | |||
Accrued interest payable | 23 | 23 | |
Accrued interest payable, fair value | 23 | 23 | |
Fair Value, Inputs, Level 1 [Member] | Non-Interest Bearing Deposit Liabilities [Member] | |||
Liabilities | |||
Deposits, fair value | 362,451 | 282,217 | |
Fair Value, Inputs, Level 1 [Member] | Interest Bearing Deposit Liabilities [Member] | |||
Liabilities | |||
Deposits, fair value | 187,978 | 180,198 | |
Fair Value, Inputs, Level 2 [Member] | |||
Assets | |||
Available for sale investments, fair value | 70,100 | 75,804 | |
Non-hedging interest rate swaps, fair value | 30 | 23 | |
Liabilities | |||
Other borrowings, fair value | 64,983 | 17,551 | |
Fair Value, Inputs, Level 2 [Member] | Interest Bearing Deposit Liabilities [Member] | |||
Liabilities | |||
Deposits, fair value | 47,748 | 40,757 | |
Fair Value, Inputs, Level 3 [Member] | |||
Assets | |||
Loans, net, fair value | $ 587,530 | $ 433,588 |
Note 13 - Non-interest Income82
Note 13 - Non-interest Income (Details) - Non-interest Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 13 - Non-interest Income (Details) - Non-interest Income [Line Items] | ||
Gain on sale of AFS investment securities | $ 75 | $ 1,178 |
Service charges and other operating income | 593 | 533 |
Total non-interest income | 668 | 1,711 |
Service Charges and Other Operating Income [Member] | ||
Note 13 - Non-interest Income (Details) - Non-interest Income [Line Items] | ||
Service charges and other operating income | $ 593 | $ 533 |
Note 14 - Other Operating Exp83
Note 14 - Other Operating Expenses (Details) - Other Operating Expenses - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Other Operating Expenses [Abstract] | ||
Loan expenses | $ 121 | $ 85 |
Board of Directors fees/non-cash stock expenses | 376 | 434 |
OCC assessments | 166 | 148 |
Branch and production office expenses | 992 | 777 |
Stationery and supplies | 122 | 109 |
Insurance | 82 | 76 |
Dues, memberships and subscriptions | 247 | 202 |
Stockholders expense | 126 | 128 |
Telephone | 145 | 102 |
Delaware Franchise Tax | 110 | 110 |
Provision for unfunded lending commitments | 25 | 50 |
Personnel hiring expenses | 69 | 76 |
Other expenses | 251 | 238 |
Total other operating expenses | $ 2,832 | $ 2,535 |
Note 15 - Stock-based Compens84
Note 15 - Stock-based Compensation (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | May. 08, 2013 | |
Note 15 - Stock-based Compensation (Details) [Line Items] | |||
Restricted Stock or Unit Expense (in Dollars) | $ 994,000 | $ 879,000 | |
2013 Equity Incentive Plan [Member] | |||
Note 15 - Stock-based Compensation (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 750,000 | 750,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 426,750 | ||
2004 Founder Stock Option Plan [Member] | |||
Note 15 - Stock-based Compensation (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 150,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | 72,000 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price (in Dollars per share) | $ 5 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 19,800 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price (in Dollars per share) | $ 5 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 0 | 0 | |
Director and Employee Stock Option Plan [Member] | |||
Note 15 - Stock-based Compensation (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,434,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 307,573 | 450,600 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price (in Dollars per share) | $ 8.01 | $ 5.07 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 42,500 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price (in Dollars per share) | $ 8.40 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 0 | 350,073 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 0 years | 211 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price (in Dollars per share) | $ 8.06 | ||
Restricted Stock [Member] | |||
Note 15 - Stock-based Compensation (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value (in Dollars) | $ 778,000 | $ 541,000 |
Note 15 - Stock-based Compens85
Note 15 - Stock-based Compensation (Details) - Restricted Stock - Restricted Stock [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 15 - Stock-based Compensation (Details) - Restricted Stock [Line Items] | ||
Beginning balance | 615,875 | 529,529 |
Beginning balance | $ 5.92 | $ 4.62 |
Ending balance | 669,750 | 615,875 |
Ending balance | $ 6.56 | $ 5.92 |
Granted | 218,750 | 228,000 |
Granted | $ 6.98 | $ 7.63 |
Vested | (164,875) | (141,654) |
Vested | $ 4.72 | $ 3.82 |
Note 15 - Stock-based Compens86
Note 15 - Stock-based Compensation (Details) - Shares Authorized and Available Under all Stock Plans - shares | Dec. 31, 2015 | Dec. 31, 2014 | May. 08, 2013 |
2004 Founder Stock Option Plan [Member] | |||
Note 15 - Stock-based Compensation (Details) - Shares Authorized and Available Under all Stock Plans [Line Items] | |||
Equity incentive plans, shares reserved | 150,000 | ||
Equity incentive plans, less shares previously exercised/vested | 121,900 | ||
Equity incentive plans, less shares outstanding | 0 | 0 | |
Director and Employee Stock Option Plan [Member] | |||
Note 15 - Stock-based Compensation (Details) - Shares Authorized and Available Under all Stock Plans [Line Items] | |||
Equity incentive plans, shares reserved | 1,434,000 | ||
Equity incentive plans, less shares previously exercised/vested | 1,220,097 | ||
Equity incentive plans, less shares outstanding | 0 | 350,073 | |
2005 Equity Incentive Plan [Member] | |||
Note 15 - Stock-based Compensation (Details) - Shares Authorized and Available Under all Stock Plans [Line Items] | |||
Equity incentive plans, shares reserved | 1,200,000 | ||
Equity incentive plans, less shares previously exercised/vested | 944,273 | ||
Equity incentive plans, less shares outstanding | 243,000 | ||
2013 Equity Incentive Plan [Member] | |||
Note 15 - Stock-based Compensation (Details) - Shares Authorized and Available Under all Stock Plans [Line Items] | |||
Equity incentive plans, shares reserved | 750,000 | 750,000 | |
Equity incentive plans, less shares previously exercised/vested | 20,000 | ||
Equity incentive plans, less shares outstanding | 426,750 | ||
Equity incentive plans, total shares available for issuance | 303,250 |
Note 16 - Income Taxes (Details
Note 16 - Income Taxes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | 34.00% |
Deferred Tax Assets, Net | $ 4,574,000 | $ 2,995,000 |
Unrecognized Tax Benefits | 0 | 0 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 0 | $ 0 |
Note 16 - Income Taxes (Detai88
Note 16 - Income Taxes (Details) - Income Tax (Benefit) Provision - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | ||
Federal | $ 2,584 | $ 1,573 |
State | 837 | 263 |
Deferred: | ||
Federal | (1,096) | (77) |
State | (377) | 144 |
Income tax provision | $ 1,948 | $ 1,903 |
Note 16 - Income Taxes (Detai89
Note 16 - Income Taxes (Details) - Income Tax Reconciliation - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Reconciliation [Abstract] | ||
Federal income tax provision at statutory rate | $ 1,530 | $ 1,450 |
Federal income tax provision at statutory rate | 34.00% | 34.00% |
Changes due to: | ||
State franchise tax, net of federal income tax | $ 327 | $ 310 |
State franchise tax, net of federal income tax | 7.00% | 7.00% |
Other, net | $ 91 | $ 143 |
Other, net | 2.00% | 4.00% |
Total income tax provision (benefit) | $ 1,948 | $ 1,903 |
Total income tax provision (benefit) | 43.00% | 45.00% |
Note 16 - Income Taxes (Detai90
Note 16 - Income Taxes (Details) - Deferred Tax Assets and Liabilities - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Allowance for loan losses | $ 2,344 | $ 1,336 |
Equity compensation | 927 | 646 |
Depreciation | 86 | 96 |
Accrued compensation | 549 | 390 |
Deferred rent | 247 | 228 |
Other | 578 | 562 |
Total deferred tax assets | 4,731 | 3,258 |
Deferred tax liabilities: | ||
Prepaid expenses | 93 | 93 |
Federal Home Loan Bank stock dividends | 57 | 57 |
Net unrealized gains on investment securities | 7 | 113 |
Total deferred tax liabilities | 157 | 263 |
Net deferred tax assets | $ 4,574 | $ 2,995 |
Note 17 - Employee Benefit Pl91
Note 17 - Employee Benefit Plan (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 17 - Employee Benefit Plan (Details) [Line Items] | ||
Defined Contribution Plan, Cost Recognized (in Dollars) | $ 229,000 | $ 199,000 |
First Three Percent of Employees Salary [Member] | ||
Note 17 - Employee Benefit Plan (Details) [Line Items] | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100.00% | |
Matched at 100 Percent [Member] | ||
Note 17 - Employee Benefit Plan (Details) [Line Items] | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 3.00% | |
Next Two Percent of Employees Salary [Member] | ||
Note 17 - Employee Benefit Plan (Details) [Line Items] | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50.00% | |
Matched at 50 Percent [Member] | ||
Note 17 - Employee Benefit Plan (Details) [Line Items] | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 2.00% |
Note 18 - Regulatory Matters (D
Note 18 - Regulatory Matters (Details) | Dec. 31, 2015 | Dec. 31, 2014 | Jul. 02, 2013 | Jul. 01, 2013 |
Disclosure Text Block [Abstract] | ||||
Common Equity Tier 1 Capital Required for Capital Adequacy to Risk Weighted Assets | 4.50% | 4.50% | ||
Common Equity Tier 1 Capital Conservation Buffer | 2.50% | |||
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.00% | 4.00% | 6.00% | 4.00% |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | 4.00% | 4.00% |
Note 18 - Regulatory Matters 93
Note 18 - Regulatory Matters (Details) - Capital Ratios - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Jul. 02, 2013 | Jul. 01, 2013 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Total Risk-Based Capital, required for capital adequacy purposes, amount | $ 51,992 | $ 38,603 | ||
Total Risk-Based Capital, required for capital adequacy purposes, ratio | 8.00% | 8.00% | ||
Total Risk-Based Capital, required to be well capitalized, amount | $ 64,989 | $ 48,253 | ||
Total Risk-Based Capital, required to be well capitalized, ratio | 10.00% | 10.00% | ||
Tier 1 Risk-Based Capitall, required for capital adequacy purposes, amount | $ 38,994 | $ 19,302 | ||
Tier 1 Risk-Based Capital, required for capital adequacy purposes, ratio | 6.00% | 4.00% | 6.00% | 4.00% |
Tier 1 Risk-Based Capital, required to be well capitalized, amount | $ 51,991 | $ 28,952 | ||
Tier 1 Risk-Based Capitall, required to be well capitalized, ratio | 8.00% | 6.00% | ||
Common Equity Tier 1 Capital Ratio | $ 29,245 | |||
Common Equity Tier 1 Capital Ratio | 4.50% | 4.50% | ||
Common Equity Tier 1 Capital Ratio | $ 42,243 | |||
Common Equity Tier 1 Capital Ratio | 6.50% | |||
Tier 1 Leveragel, required for capital adequacy purposes, amount | $ 28,852 | $ 24,357 | ||
Tier 1 Leverage, required for capital adequacy purposes, ratio | 4.00% | 4.00% | 4.00% | |
Tier 1 Leverage, required to be well capitalized, amount | $ 36,078 | $ 30,456 | ||
Tier 1 Leveragel, required to be well capitalized, ratio | 5.00% | 5.00% | ||
Company [Member] | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Total Risk-Based Capital, amount | $ 73,029 | $ 67,275 | ||
Total Risk-Based Capital, ratio | 11.24% | 13.94% | ||
Tier 1 Risk-Based Capital, amount | $ 64,891 | $ 61,220 | ||
Tier 1 Risk-Based Capital, ratio | 9.98% | 12.69% | ||
Common Equity Tier 1 Capital Ratio | $ 64,891 | |||
Common Equity Tier 1 Capital Ratio | 9.98% | |||
Tier 1 Leverage, amount | $ 64,891 | $ 61,220 | ||
Tier 1 Leverage, ratio | 9.00% | 10.05% | ||
Bank [Member] | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Total Risk-Based Capital, amount | $ 72,520 | $ 63,339 | ||
Total Risk-Based Capital, ratio | 11.16% | 13.13% | ||
Tier 1 Risk-Based Capital, amount | $ 64,381 | $ 57,284 | ||
Tier 1 Risk-Based Capital, ratio | 9.91% | 11.87% | ||
Common Equity Tier 1 Capital Ratio | $ 64,381 | |||
Common Equity Tier 1 Capital Ratio | 9.91% | |||
Tier 1 Leverage, amount | $ 64,381 | $ 57,284 | ||
Tier 1 Leverage, ratio | 8.92% | 9.40% |
Note 19 - Parent Company Only94
Note 19 - Parent Company Only Condensed Financial Information (Details) - Condensed Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets | |||
Cash and due from banks | $ 8,889 | $ 7,484 | |
Total Assets | 731,950 | 585,218 | |
Liabilities and Stockholders’ Equity | |||
Other liabilities | 3,870 | 2,853 | |
Common stock | 127 | 121 | |
Additional paid-in capital | 75,396 | 71,736 | |
Retained earnings (accumulated deficit) | 878 | (1,675) | |
Accumulated other comprehensive income | 11 | 162 | |
Treasury stock at cost | (11,509) | (8,651) | |
Total Stockholders’ Equity | 64,903 | 61,693 | $ 55,388 |
Total Liabilities and Stockholders’ Equity | 731,950 | 585,218 | |
Parent Company [Member] | |||
Assets | |||
Cash and due from banks | 535 | 3,961 | |
Investment in subsidiary bank | 64,392 | 57,757 | |
Total Assets | 64,927 | 61,718 | |
Liabilities and Stockholders’ Equity | |||
Other liabilities | 24 | 25 | |
Common stock | 127 | 121 | |
Additional paid-in capital | 75,396 | 71,736 | |
Retained earnings (accumulated deficit) | 878 | (1,675) | |
Accumulated other comprehensive income | 11 | 162 | |
Treasury stock at cost | (11,509) | (8,651) | |
Total Stockholders’ Equity | 64,903 | 61,693 | |
Total Liabilities and Stockholders’ Equity | $ 64,927 | $ 61,718 |
Note 19 - Parent Company Only95
Note 19 - Parent Company Only Condensed Financial Information (Details) - Condensed Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Income Statements, Captions [Line Items] | ||
Compensation and benefits | $ 10,333 | $ 9,202 |
Loss before taxes | 4,501 | 4,264 |
Income tax benefit | (1,948) | (1,903) |
Net income | 2,553 | 2,361 |
Comprehensive income | 2,402 | 2,471 |
Parent Company [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Compensation and benefits | (17) | (33) |
Other operating expenses | (19) | (60) |
Loss before taxes | (36) | (93) |
Income tax benefit | 5 | |
Loss before equity in undistributed income of subsidiary bank | (31) | (93) |
Equity in undistributed income of subsidiary bank | 2,584 | 2,454 |
Net income | 2,553 | 2,361 |
Comprehensive income | $ 2,402 | $ 2,471 |
Note 19 - Parent Company Only96
Note 19 - Parent Company Only Condensed Financial Information (Details) - Condensed Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 2,553 | $ 2,361 |
Cash flows from investing activities: | ||
Net cash used in investing activities | (151,492) | (32,613) |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 2,464 | 2,643 |
Shares surrendered on vesting and exercise of stock based compensation | (2,858) | (678) |
Net cash provided by financing activities | 142,319 | 43,361 |
Net change in cash and cash equivalents | (3,899) | 13,776 |
Cash and cash equivalents, beginning of year | 58,464 | 44,688 |
Cash and cash equivalents, end of year | 54,565 | 58,464 |
Parent Company [Member] | ||
Cash flows from operating activities: | ||
Net income | 2,553 | 2,361 |
Adjustments to reconcile net income to net cash used in operations: | ||
Equity in undistributed net income of subsidiary bank | (2,584) | (2,454) |
(Decrease) increase in other liabilities | (1) | 7 |
Net cash used in operating activities | (32) | (86) |
Cash flows from investing activities: | ||
Investment in subsidiary bank | (3,000) | |
Net cash used in investing activities | (3,000) | |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 2,464 | 2,643 |
Shares surrendered on vesting and exercise of stock based compensation | (2,858) | (678) |
Net cash provided by financing activities | (394) | 1,965 |
Net change in cash and cash equivalents | (3,426) | 1,879 |
Cash and cash equivalents, beginning of year | 3,961 | 2,082 |
Cash and cash equivalents, end of year | $ 535 | $ 3,961 |
Note 20 - Shareholders' Equity
Note 20 - Shareholders' Equity (Details) | Dec. 31, 2015USD ($) |
Other Assets [Member] | |
Note 20 - Shareholders' Equity (Details) [Line Items] | |
Deferred Offering Costs | $ 173,000 |