Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 13, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | COASTAL FINANCIAL CORP | |
Entity Central Index Key | 1,437,958 | |
Amendment Flag | false | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Entity Common Stock, Shares Outstanding | 11,887,503 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and due from banks | $ 16,837 | $ 13,787 |
Interest earning deposits with other banks (restricted cash of $22,630 and $17,332 at September 30, 2018 and December 31, 2017, respectively) | 98,671 | 75,964 |
Investment securities, available for sale, at fair value | 35,749 | 36,927 |
Investment securities, held to maturity, at amortized cost | 1,290 | 1,409 |
Other investments | 3,766 | 3,680 |
Loans receivable | 744,320 | 656,788 |
Allowance for loan losses | (9,111) | (8,017) |
Total loans receivable, net | 735,209 | 648,771 |
Premises and equipment, net | 12,845 | 13,121 |
Accrued interest receivable | 2,299 | 2,274 |
Bank-owned life insurance, net | 6,640 | 6,500 |
Deferred tax asset, net | 2,309 | 2,092 |
Other assets | 1,414 | 1,228 |
Total assets | 917,029 | 805,753 |
LIABILITIES | ||
Deposits | 774,722 | 703,295 |
Federal Home Loan Bank (FHLB) advances | 20,000 | 20,000 |
Principal amount $10,000 (less unamortized debt issuance costs of $39 and $50 at September 30, 2018 and December 31, 2017, respectively) | 9,961 | 9,950 |
Principal amount $3,609 (less unamortized debt issuance costs of $28 and $30 at September 30, 2018 and December 31, 2017, respectively) | 3,581 | 3,579 |
Deferred compensation | 1,102 | 1,175 |
Accrued interest payable | 257 | 228 |
Other liabilities | 2,130 | 1,815 |
Total liabilities | 811,753 | 740,042 |
SHAREHOLDERS’ EQUITY | ||
Authorized: 25,000,000 shares at September 30, 2018 and December 31, 2017; issued and outstanding: zero shares at September 30, 2018 and December 31, 2017 | ||
Authorized: 300,000,000 shares at September 30, 2018 and December 31, 2017; 11,886,473 voting shares at September 30, 2018 issued and outstanding and 8,887,457 voting and 361,444 nonvoting shares at December 31, 2017 issued and outstanding | 86,334 | 52,521 |
Retained earnings | 20,966 | 14,134 |
Accumulated other comprehensive loss, net of tax | (2,024) | (944) |
Total shareholders’ equity | 105,276 | 65,711 |
Total liabilities and shareholders’ equity | $ 917,029 | $ 805,753 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Restricted cash | $ 22,630 | $ 17,332 |
Preferred stock, no par value | ||
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, no par value | ||
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares, issued | 11,886,473 | 8,887,457 |
Common stock, shares, outstanding | 11,886,473 | 8,887,457 |
Voting Common Stock | ||
Common stock, shares, issued | 11,886,473 | 8,887,457 |
Common stock, shares, outstanding | 11,886,473 | 8,887,457 |
Non-voting Common Stock | ||
Common stock, shares, issued | 361,444 | |
Common stock, shares, outstanding | 361,444 | |
Subordinated Debt | ||
Principal amount | $ 10,000 | $ 10,000 |
Unamortized debt issuance cost | 39 | 50 |
Junior Subordinated Debentures | ||
Principal amount | 3,609 | 3,609 |
Unamortized debt issuance cost | $ 28 | $ 30 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
INTEREST AND DIVIDEND INCOME | ||||
Interest and fees on loans | $ 9,262 | $ 7,908 | $ 26,229 | $ 22,741 |
Interest on investment securities | 156 | 135 | 463 | 385 |
Interest on interest earning deposits with other banks | 458 | 171 | 949 | 458 |
Dividends on other investments | 18 | 3 | 91 | 77 |
Total interest income | 9,894 | 8,217 | 27,732 | 23,661 |
INTEREST EXPENSE | ||||
Interest on deposits | 851 | 540 | 2,209 | 1,526 |
Interest on borrowed funds | 195 | 192 | 594 | 551 |
Total interest expense | 1,046 | 732 | 2,803 | 2,077 |
Net interest income | 8,848 | 7,485 | 24,929 | 21,584 |
PROVISION FOR LOAN LOSSES | 508 | 65 | 1,401 | 504 |
Net interest income after provision for loan losses | 8,340 | 7,420 | 23,528 | 21,080 |
NONINTEREST INCOME | ||||
Sublease and lease income | 10 | 56 | 71 | 167 |
Gain on sales of loans, net | 18 | 142 | 102 | |
Other income | 147 | 137 | 414 | 437 |
Total noninterest income | 1,546 | 1,250 | 3,866 | 3,101 |
NONINTEREST EXPENSE | ||||
Salaries and employee benefits | 4,027 | 3,491 | 11,672 | 9,947 |
Occupancy | 798 | 784 | 2,425 | 2,253 |
Data processing | 501 | 463 | 1,472 | 1,311 |
Director and staff expenses | 213 | 172 | 493 | 450 |
Excise taxes | 146 | 119 | 404 | 344 |
Marketing | 110 | 148 | 253 | 298 |
Legal and professional fees | 142 | 87 | 352 | 281 |
Federal Deposit Insurance Corporation (FDIC) assessments | 83 | 90 | 247 | 271 |
Business development | 81 | 68 | 241 | 195 |
Other expense | 509 | 387 | 1,472 | 1,298 |
Total noninterest expense | 6,610 | 5,809 | 19,031 | 16,648 |
Income before provision for income taxes | 3,276 | 2,861 | 8,363 | 7,533 |
PROVISION FOR INCOME TAXES | 674 | 957 | 1,717 | 2,440 |
NET INCOME | $ 2,602 | $ 1,904 | $ 6,646 | $ 5,093 |
Basic earnings per common share | $ 0.23 | $ 0.21 | $ 0.67 | $ 0.55 |
Diluted earnings per common share | $ 0.22 | $ 0.21 | $ 0.66 | $ 0.55 |
Weighted average number of common shares outstanding: | ||||
Basic | 11,338,320 | 9,235,344 | 9,956,449 | 9,233,421 |
Diluted | 11,609,978 | 9,238,808 | 10,051,415 | 9,236,175 |
Deposit Service Charges and Fees | ||||
NONINTEREST INCOME | ||||
Noninterest income | $ 800 | $ 725 | $ 2,258 | $ 1,924 |
Loan Referral Fees | ||||
NONINTEREST INCOME | ||||
Noninterest income | 209 | 234 | 453 | 276 |
Wholesale Banking Service Fees | ||||
NONINTEREST INCOME | ||||
Noninterest income | 328 | 370 | ||
Mortgage Broker Fees | ||||
NONINTEREST INCOME | ||||
Noninterest income | $ 52 | $ 80 | $ 158 | $ 195 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
NET INCOME | $ 2,602 | $ 1,904 | $ 6,646 | $ 5,093 |
Securities available-for-sale | ||||
Unrealized holding gain (loss) gain during the quarter | (259) | (63) | (1,131) | 504 |
Income tax benefit (provision) related to unrealized holding gain (loss) | 54 | 21 | 237 | (171) |
OTHER COMPREHENSIVE (LOSS) INCOME, net of tax | (205) | (42) | (894) | 333 |
COMPREHENSIVE INCOME | $ 2,397 | $ 1,862 | $ 5,752 | $ 5,426 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Dec. 31, 2016 | $ 59,897 | $ 52,215 | $ 8,698 | $ (1,016) |
Beginning balance, Shares at Dec. 31, 2016 | 9,238,788 | |||
Net income | 5,093 | 5,093 | ||
Issuance of vested stock awards, Shares | 600 | |||
Issuance of restricted stock awards, Shares | 6,208 | |||
Exercise of stock options | 24 | $ 24 | ||
Exercise of stock options, Shares | 3,620 | |||
Stock repurchase | (2) | $ (2) | ||
Stock repurchase, Shares | (211) | |||
Stock-based compensation | 213 | $ 213 | ||
Other comprehensive income (loss) | 333 | 333 | ||
Ending balance at Sep. 30, 2017 | 65,558 | $ 52,450 | 13,791 | (683) |
Ending balance, Shares at Sep. 30, 2017 | 9,249,005 | |||
Beginning balance at Dec. 31, 2017 | 65,711 | $ 52,521 | 14,134 | (944) |
Beginning balance, Shares at Dec. 31, 2017 | 9,248,901 | |||
Net income | 6,646 | 6,646 | ||
Reclassification of stranded tax effect due to federal tax rate change | 186 | (186) | ||
Issuance of restricted stock awards, Shares | 4,402 | |||
Exercise of stock options | $ 339 | $ 339 | ||
Exercise of stock options, Shares | 55,670 | 55,670 | ||
Stock-based compensation | $ 231 | $ 231 | ||
Stock issuance and net proceeds from initial public offering | 33,243 | $ 33,243 | ||
Stock issuance and net proceeds from initial public offering, Shares | 2,577,500 | |||
Other comprehensive income (loss) | (894) | (894) | ||
Ending balance at Sep. 30, 2018 | $ 105,276 | $ 86,334 | $ 20,966 | $ (2,024) |
Ending balance, Shares at Sep. 30, 2018 | 11,886,473 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 6,646 | $ 5,093 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Provision for loan losses | 1,401 | 504 |
Depreciation and amortization | 786 | 721 |
Loss on disposition of fixed assets | 21 | |
Gain on sales of loans | (142) | (102) |
Gain on sale of other real estate owned | (32) | |
Net discount accretion on investment securities | (17) | (6) |
Stock-based compensation | 231 | 213 |
Bank-owned life insurance earnings | (140) | (138) |
Net change in other assets and liabilities | 92 | (688) |
Total adjustments | 2,211 | 493 |
Net cash provided by operating activities | 8,857 | 5,586 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Net (increase) decrease in interest earning deposits with other banks | (22,707) | 1,400 |
Purchase of other investments, net | (86) | (381) |
Principal paydowns of investment securities available-for-sale | 70 | 79 |
Principal paydowns of investment securities held-to-maturity | 114 | 234 |
Purchase of participation loans | (32,653) | |
Purchase of loans | (8,575) | (9,917) |
Increase in loans receivable, net | (46,469) | (24,396) |
Proceeds from sale of other real estate owned | 1,329 | |
Purchases of premises and equipment, net | (510) | (526) |
Net cash used by investing activities | (110,816) | (32,178) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net increase in demand deposits, NOW and money market, and savings | 63,693 | 26,620 |
Net increase in time deposits | 7,734 | 5,917 |
Net proceeds from initial public offering | 33,243 | |
Proceeds from exercise of stock options | 339 | 24 |
Repurchase of common stock | (2) | |
Net cash provided by financing activities | 105,009 | 32,559 |
NET INCREASE IN CASH AND DUE FROM BANKS | 3,050 | 5,967 |
CASH AND DUE FROM BANKS, beginning of year | 13,787 | 11,084 |
CASH AND DUE FROM BANKS, end of quarter | 16,837 | 17,051 |
SUPPLEMENTAL SCHEDULE OF OPERATING AND INVESTING ACTIVITIES | ||
Interest paid | 2,774 | 2,054 |
Income taxes paid | 1,670 | 2,895 |
SUPPLEMENTAL SCHEDULE OF NONCASH TRANSACTIONS | ||
Fair value adjustment of securities available-for-sale, gross | $ (1,131) | $ 505 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Note 1 - Description of Business and Summary of Significant Accounting Policies Nature of operations - Coastal Financial Corporation (Corporation or Company) is a registered bank holding company whose wholly owned subsidiary is Coastal Community Bank (Bank). The Company is a Washington state corporation that was organized in 2003. The Bank was incorporated and commenced operations in 1997 and is a Washington state-chartered commercial bank and Federal Reserve System (Federal Reserve) state member bank. The Company provides a full range of banking services to small and medium-sized businesses, professionals, and individuals throughout the greater Puget Sound area through its 14 branches in Snohomish, Island, and King Counties, the Internet, and its mobile banking application. The Bank’s main branch and the headquarters of the Bank and Company are located in Everett, Washington. The Bank’s deposits are insured in whole or in part by the Federal Deposit Insurance Corporation (FDIC). The Bank’s loans and deposits are primarily within the greater Puget Sound area, and the Bank’s primary funding source is deposits from customers. The Bank is subject to regulation by the Federal Reserve and the Washington State Department of Financial Institutions Division of Banks. The Federal Reserve also has supervisory authority over the Company. Financial statement presentation - The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim reporting requirements and with instructions to Form 10-Q and Article 10 of Regulation S-X, and therefore do not include all the information and notes included in the annual consolidated financial statements in conformity with GAAP. These interim condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes included elsewhere in this report. Operating results for the three and nine months ended September 30, 2018, are not necessarily indicative of the results that may be expected for future periods. Amounts presented in the consolidated financial statements and footnote tables are rounded and presented in thousands of dollars except per-share amounts, which are presented in dollars. In the narrative footnote discussion, amounts are rounded to thousands and presented in dollars. In management’s opinion, all accounting adjustments necessary to accurately reflect the financial position and results of operations on the accompanying consolidated financial statements have been made. These adjustments include normal and recurring accruals considered necessary for a fair and accurate presentation. Principles of consolidation - The consolidated financial statements include the accounts of the Company and the Bank. All significant intercompany accounts have been eliminated in consolidation. Business Segments - The Company is managed by legal entity and not by lines of business. The entity’s primary business is that of a traditional banking institution, gathering deposits and originating loans for portfolio in its market areas. The Bank offers a wide variety of deposit products to its customers. Lending activities include the origination of real estate, commercial and industrial, and consumer loans. Interest income on loans is the Company’s primary source of revenue, and is supplemented by interest income on deposits with other banks, interest income from investment securities, deposit service charges, and other service provided activities. The Company has determined that its current business and operations consist of a single reporting segment and, therefore, segment disclosures are not required. Estimates - The preparation of financial statements in conformity with GAAP requires management 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Management believes that its critical accounting policies include determining the allowance for loan losses, the fair value of the Company’s investment securities, deferred tax assets, and financial instruments. Actual results could differ significantly from those estimates. Subsequent Events - The Company has evaluated events and transactions subsequent to September 30, 2018 for potential recognition or disclosure. On October 9 th Accounting policies – Our complete accounting policies are described in Note 1, summary of significant accounting policies of the Company’s audited consolidated financial statements as of and for the years ended December 31, 2017 and 2016 included in the Form S-1 filed with the SEC. Reclassifications - Certain amounts reported in prior quarters' consolidated financial statements have been reclassified to conform to the current presentation with no effect on stockholders’ equity or net income. |
Recent Accounting Standards
Recent Accounting Standards | 9 Months Ended |
Sep. 30, 2018 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recent Accounting Standards | Note 2 - Recent accounting standards Accounting Standards Adopted in 2018 On January 1, 2018, the Company adopted Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) The Company concluded that there is no change to the timing and pattern of revenue recognition for its current revenue streams or the presentation of revenue as gross versus net. No adjustment to retained earnings was required on the adoption date. Because there is no change to the timing and pattern of revenue recognition, there are no material changes to the Company’s processes and internal controls. All of the Company’s revenue from contracts with customers within the scope of ASC 606 is recognized within noninterest income. A description of the Company’s revenue streams accounted for under ASC 606 is as follows: Service Charges on Deposit Accounts: Interchange Income: Merchant Service Fees: Wholesale Banking Service Fees: Loan Referral Fees: Mortgage Broker Fees: As of January 1, 2018, the Company adopted FASB ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10) In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Receipts and Cash Payments In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. In February 2018, the FASB issued ASU No. 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. In May 2018, the FASB issued ASU No. 2018-06, Codification Improvements to Topic 942, Financial Services - Depository and Lending. Accounting for Net Deferred Tax Charges Recent Accounting Guidance Not Yet Effective In February 2016, FASB issued ASU 2016-02, Leases (Topic 842) In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. This ASU was issued to expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. Previously, these awards were recorded at the fair value of consideration received or the fair value of the equity instruments issued and was measured as of the earlier of the commitment date or the date performance was completed. The amendments in this ASU require the awards to be measured at the grant-date fair value of the equity instrument. ASU No. 2018-07 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, but no earlier than an entity's adoption of Topic 606. The adoption of ASU No. 2018-07 is not expected to have a material impact on the Company's future consolidated financial statements. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Investment Securities | Note 3 - Investment Securities The amortized cost and fair values of investment securities at the date indicated are as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (dollars in thousands) September 30, 2018 Available-for-sale U.S. Treasury securities $ 34,821 $ - $ (2,492 ) $ 32,329 U.S. Government agencies 3,000 - (59 ) 2,941 U.S. Agency collateralized mortgage obligations 188 - (6 ) 182 U.S. Agency residential mortgage-backed securities 43 - - 43 Municipals 259 - (5 ) 254 Total available-for-sale securities 38,311 - (2,562 ) 35,749 Held-to-maturity U.S. Agency residential mortgage-backed securities 1,290 - (84 ) 1,206 Total investment securities $ 39,601 $ - $ (2,646 ) $ 36,955 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (dollars in thousands) December 31, 2017 Available-for-sale U.S. Treasury securities $ 34,794 $ - $ (1,398 ) $ 33,396 U.S. Government agencies 3,000 - (30 ) 2,970 U.S. Agency collateralized mortgage obligations 224 - (3 ) 221 U.S. Agency residential mortgage-backed securities 79 1 - 80 Municipals 261 - (1 ) 260 Total available-for-sale securities 38,358 1 (1,432 ) 36,927 Held-to-maturity U.S. Agency residential mortgage-backed securities 1,409 - (35 ) 1,374 Total investment securities $ 39,767 $ 1 $ (1,467 ) $ 38,301 The amortized cost and fair value of debt securities at September 30, 2018, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Mortgage-backed securities and collateralized mortgage obligations are shown separately, since they are not due at a single maturity date. Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value (dollars in thousands) Amounts maturing in One year or less $ - $ - $ - $ - After one year through five years 27,838 26,141 - - After five years through ten years 10,242 9,383 - - 38,080 35,524 - - U.S. Agency residential mortgage-backed securities and collateralized mortgage obligations 231 225 1,290 1,206 $ 38,311 $ 35,749 $ 1,290 $ 1,206 Investment securities with carrying values of $19,722,000 and $14,526,000 at September 30, 2018 and December 31, 2017 respectively, were pledged to secure public deposits and for other purposes as required or permitted by law. There were no sales of investment securities during the three and nine months ended September 30, 2018 and September 30, 2017. Information pertaining to securities with gross unrealized losses at the dates indicated, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: Less Than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (dollars in thousands) September 30, 2018 Available-for-sale U.S. Treasury securities $ - $ - $ 32,329 $ (2,492 ) $ 32,329 $ (2,492 ) U.S. Government agencies - - 2,941 (59 ) 2,941 (59 ) U.S. Agency collateralized mortgage obligations - - 182 (6 ) 182 (6 ) Municipals 254 (5 ) - - 254 (5 ) Total available-for-sale securities 254 (5 ) 35,452 (2,557 ) 35,706 (2,562 ) Held-to-maturity U.S. Agency residential mortgage-backed securities - - 1,206 (84 ) 1,206 (84 ) Total investment securities $ 254 $ (5 ) $ 36,658 $ (2,641 ) $ 36,912 $ (2,646 ) December 31, 2017 Available-for-sale U.S. Treasury securities $ 4,934 $ (77 ) $ 28,463 $ (1,321 ) $ 33,397 $ (1,398 ) U.S. Government agencies - - 2,970 (30 ) 2,970 (30 ) U.S. Agency collateralized mortgage obligations 220 (3 ) - - 220 (3 ) Municipals 260 (1 ) - - 260 (1 ) Total available-for-sale securities 5,414 (81 ) 31,433 (1,351 ) 36,847 (1,432 ) Held-to-maturity U.S. Agency residential mortgage-backed securities - - 1,374 (35 ) 1,374 (35 ) Total investment securities $ 5,414 $ (81 ) $ 32,807 $ (1,386 ) $ 38,221 $ (1,467 ) At September 30, 2018 and December 31, 2017, there were 11 securities in an unrealized loss position. Unrealized losses have not been recognized into income because management does not intend to sell and does not expect it will be required to sell the investments. The decline is largely due to changes in market conditions and interest rates, rather than credit quality. The fair value is expected to recover as the underlying securities in the portfolio approach maturity date and market conditions improve. The Company does not consider these securities to be other than temporarily impaired at September 30, 2018 and December 31, 2017. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | Note 4 - Loans and Allowance for Loan Losses The composition of the loan portfolio is as follows as of the periods indicated: September 30, December 31, 2018 2017 (dollars in thousands) Commercial and industrial loans $ 85,554 $ 88,688 Real estate loans: Construction, land, and land development 62,222 41,641 Residential real estate 91,995 87,031 Commercial real estate 502,782 437,717 Consumer and other loans 2,583 2,058 Gross loans receivable 745,136 657,135 Net deferred origination fees and premiums (816 ) (347 ) Loans receivable $ 744,320 $ 656,788 Included in consumer and other loans are overdrafts of $27,000 and $76,000 at September 30, 2018 and December 31, 2017, respectively. The Company has pledged loans totaling $157,100,000 and $147,008,000 at September 30, 2018 and December 31, 2017, respectively, for borrowing lines at the FHLB and FRB. The balance of SBA loans and participations serviced for others totaled $28,679,000 and $29,910,000 at September 30, 2018 and December 31, 2017, respectively. The Company, at times, purchases individual loans at fair value as of the acquisition date. Purchased loans with remaining balances totaled $42,662,000 and $43,213,000 as of September 30, 2018 and December 31, 2017, respectively. Unamortized premiums totaled $676,000 and $718,000 as of September 30, 2018 and December 31, 2017, respectively, and are amortized into interest income over the life of the loans. The Company has purchased participation loans with remaining balances totaling $40,500,000 and $8,124,000 as of September 30, 2018 and December 31, 2017, respectively. The following is a summary of the Company’s loan portfolio segments: Commercial and industrial loans - Commercial and industrial loans are secured by business assets including inventory, receivables and machinery and equipment of businesses located generally in our primary market area. Loan types include revolving lines of credit, term loans, and loans secured by liquid collateral such as cash deposits or marketable securities. We also issue letters of credit on behalf of our customers. Risk arises primarily due to the difference between expected and actual cash flows of the borrowers. In addition, the recoverability of the Company’s investment in these loans is also dependent on other factors primarily dictated by the type of collateral securing these loans. The fair value of the collateral securing these loans may fluctuate as market conditions change. In the case of loans secured by accounts receivable, the recovery of the Company’s investment is dependent upon the borrower’s ability to collect amounts due from its customers. Construction, land and land development loans - We originate loans for the construction of 1-4 family, multifamily, and CRE properties in our market area. Construction loans are considered to have higher risks due to construction completion and timing risk, the ultimate repayment being sensitive to interest rate changes, government regulation of real property and the availability of long-term financing. Additionally, economic conditions may impact the Company’s ability to recover its investment in construction loans, as adverse economic conditions may negatively impact the real estate market, which could affect the borrower’s ability to complete and sell the project. Additionally, the fair value of the underlying collateral may fluctuate as market conditions change. We occasionally originate land loans for the purpose of facilitating the ultimate construction of a home or commercial building. The primary risks include the borrower’s ability to pay and the inability of the Company to recover its investment due to a material decline in the fair value of the underlying collateral. Residential real estate - Residential real estate includes various types of loans for which the Company holds real property as collateral. Included in this segment are multi-family loans, first lien single family loans, which we occasionally purchase to diversify our loan portfolio, and rental portfolios secured by one-to-four family homes. The primary risks of residential real estate loans include the borrower’s inability to pay, material decreases in the value of the collateral, and significant increases in interest rates which may make the loan unprofitable. Commercial real estate (includes owner occupied and nonowner occupied) - Commercial real estate includes various types of loans for which the Company holds real property as collateral. The primary risks of commercial real estate loans include the borrower’s inability to pay, material decreases in the value of the collateralized real estate and significant increases in interest rates, which may make the real estate loan unprofitable. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. Consumer and other loans - We originate a limited number of consumer loans, generally for banking customers only, which consist primarily of home equity lines of credit, saving account secured loans, and auto loans. This loan category also includes overdrafts. Repayment of these loans is dependent on the borrower’s ability to pay and the fair value of the underlying collateral. The following table illustrates an age analysis of past due loans as of the dates indicated: 30-89 Days Past Due 90 Days or More Past Due Total Past Due Current Total Loans Recorded Investment 90 Days or More Past Due and Still Accruing (dollars in thousands) September 30, 2018 Commercial and industrial loans $ 695 $ 703 $ 1,398 $ 84,156 $ 85,554 $ - Real estate loans: Construction, land and land development - - - 62,222 62,222 - Residential real estate - 74 74 91,921 91,995 - Commercial real estate - - - 502,782 502,782 - Consumer and other loans - - - 2,583 2,583 - $ 695 $ 777 $ 1,472 $ 743,664 $ 745,136 $ - Less net deferred origination fees (816 ) Loans receivable $ 744,320 30-89 Days Past Due 90 Days or More Past Due Total Past Due Current Total Loans Recorded Investment 90 Days or More Past Due and Still Accruing (dollars in thousands) December 31, 2017 Commercial and industrial loans $ 791 $ 372 $ 1,163 $ 87,525 $ 88,688 $ - Real estate loans: Construction, land and land development 218 - 218 41,423 41,641 - Residential real estate 76 - 76 86,955 87,031 - Commercial real estate 333 345 678 437,039 437,717 - Consumer and other loans - - - 2,058 2,058 - $ 1,418 $ 717 $ 2,135 $ 655,000 657,135 $ - Less net deferred origination fees (347 ) Loans receivable $ 656,788 A summary of information pertaining to impaired loans as of the period indicated: Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance (dollars in thousands) September 30, 2018 Commercial and industrial loans $ 1,447 $ 703 $ 467 $ 1,170 $ 117 Real estate loans: Residential real estate 75 74 - 74 - Commercial real estate 1,495 1,277 - 1,277 - Total $ 3,017 $ 2,054 $ 467 $ 2,521 $ 117 December 31, 2017 Commercial and industrial loans $ 1,123 $ 1,065 $ - $ 1,065 $ - Real estate loans: Residential real estate 94 89 - 89 - Commercial real estate 2,249 1,660 - 1,660 - Total $ 3,466 $ 2,814 $ - $ 2,814 $ - The following tables summarize our average recorded investment and interest income recognized on impaired loans by loan class for the three and nine months ended September 30, 2018 and 2017: Three Months Ended September 30, 2018 September 30, 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (dollars in thousands) Commercial and industrial loans $ 995 $ 3 $ 219 $ - Real estate loans: Residential real estate 74 - - - Commercial real estate 1,284 - - - Total $ 2,353 $ 3 $ 219 $ - Nine Months Ended September 30, 2018 September 30, 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (dollars in thousands) Commercial and industrial loans $ 1,371 $ 28 $ 247 $ - Real estate loans: Construction, land and land development - - 1,281 17 Residential real estate 306 5 97 - Commercial real estate 1,296 - 5,388 27 Total $ 2,973 $ 33 $ 7,013 $ 44 The Company grants restructurings in response to borrower financial difficulty, and generally provides for a temporary modification of loan repayment terms. The restructured loans on accrual status represent the only impaired loans accruing interest. In order for a restructured loan to be considered for accrual status, the loan’s collateral coverage generally will be greater than or equal to 100% of the loan balance, the loan is current on payments, and the borrower must either prefund an interest reserve or demonstrate the ability to make payments from a verified source of cash flow for an extended period of time, usually at least six months in duration. The following table presents troubled debt restructurings by accrual versus nonaccrual status and by loan class as of the period indicated: Accrual Status Nonaccrual Status Total Restructured Loans (dollars in thousands) September 30, 2018 Commercial real estate $ - $ 1,277 $ 1,277 December 31, 2017 Commercial real estate $ - $ 1,315 $ 1,315 No loans were restructured in the nine months ended September 30, 2018 and September 30, 2017 that qualified as troubled debt restructurings. The Company has no commitments to loan additional funds to borrowers whose loans were classified as troubled debt restructurings at September 30, 2018. When loans are placed on nonaccrual status, all accrued interest is reversed from current period earnings. Payments received on nonaccrual loans are generally applied as a reduction to the loan principal balance. If the likelihood of further loss is removed, the Company will recognize interest on a cash basis only. Loans may be returned to accruing status if the Company believes that all remaining principal and interest is fully collectible and there has been at least six months of sustained repayment performance since the loan was placed on nonaccrual. An analysis of nonaccrual loans by category consisted of the following at the periods indicated: September 30, December 31, 2018 2017 (dollars in thousands) Commercial and industrial loans $ 1,170 $ 372 Real estate loans: Residential real estate 74 88 Commercial real estate 1,277 1,660 Total nonaccrual loans $ 2,521 $ 2,120 Credit Quality and Credit Risk Federal regulations require that the Company periodically evaluate the risks inherent in its loan portfolio. In addition, the Company’s regulatory agencies have authority to identify problem loans and, if appropriate, require them to be reclassified. There are three classifications for problem loans: Substandard, Doubtful, and Loss. Substandard loans have one or more defined weaknesses and are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful loans have the weaknesses of loans classified as Substandard, with additional characteristics that suggest the weaknesses make collection or recovery in full after liquidation of collateral questionable on the basis of currently existing facts, conditions, and values. There is a high possibility of loss in loans classified as Doubtful. A loan classified as Loss is considered uncollectible and of such little value that continued classification of the credit as a loan is not warranted. If a loan or a portion thereof is classified as Loss, it must be charged-off, meaning the amount of the loss is charged against the allowance for loan losses, thereby reducing that reserve. The Company also classifies some loans as Watch or Other Loans Especially Mentioned (OLEM). Loans classified as Watch are performing assets and classified as pass credits but have elements of risk that require more monitoring than other performing loans and are reported in the Pass column in the following table. Loans classified as OLEM are assets that continue to perform but have shown deterioration in credit quality and require close monitoring. Loans by credit quality risk rating are as follows as of the periods indicated: Pass Other Loans Especially Mentioned Sub- Standard Doubtful Total (dollars in thousands) September 30, 2018 Commercial and industrial loans $ 81,751 $ 2,248 $ 1,555 $ - $ 85,554 Real estate loans: Construction, land, and land development 59,707 2,515 - - 62,222 Residential real estate 91,796 125 74 - 91,995 Commercial real estate 499,223 2,282 1,277 - 502,782 Consumer and other loans 2,583 - - - 2,583 $ 735,060 $ 7,170 $ 2,906 $ - 745,136 Less net deferred origination fees (816 ) Loans receivable $ 744,320 December 31, 2017 Commercial and industrial loans $ 87,247 $ 376 $ 902 $ 163 $ 88,688 Real estate loans: Construction, land, and land development 39,081 2,560 - - 41,641 Residential real estate 86,464 479 88 - 87,031 Commercial real estate 434,421 1,636 1,315 345 437,717 Consumer and other loans 2,058 - - - 2,058 $ 649,271 $ 5,051 $ 2,305 $ 508 657,135 Less net deferred origination fees (347 ) Loans receivable $ 656,788 Allowance for Loan Losses The Company’s ALLL covers estimated credit losses on individually evaluated loans that are determined to be impaired as well as estimated probable losses inherent in the remainder of the loan portfolio. The ALLL is prepared using the information provided by the Company’s credit review process together with data from peer institutions and economic information gathered from published sources. The loan portfolio is segmented into groups of loans with similar risk profiles. Each segment possesses varying degrees of risk based on the type of loan, the type of collateral, and the sensitivity of the borrower or industry to changes in external factors such as economic conditions. An estimated loss rate calculated the Company’s actual historical loss rates adjusted for current portfolio trends, economic conditions, and other relevant internal and external factors, is applied to each group’s aggregate loan balances. The following tables summarize the allocation of the allowance for loan loss, as well as the activity in the allowance for loan loss attributed to various segments in the loan portfolio, as of and for the three and nine months ended September 30, 2018: Commercial and Industrial Construction, Land, and Land Development Residential Real Estate Commercial Real Estate Consumer and Other Unallocated Total (dollars in thousands) Three Months Ended September 30, 2018 ALLL balance, June 30, 2018 $ 1,821 $ 1,238 $ 1,395 $ 2,303 $ 52 $ 1,731 $ 8,540 Provision for loan losses or (recapture) (10 ) 423 7 164 39 (115 ) 508 1,811 1,661 1,402 2,467 91 1,616 9,048 Loans charged-off - - - - (6 ) - (6 ) Recoveries of loans previously charged-off 1 - 65 - 3 - 69 Net (charge-offs) recoveries 1 - 65 - (3 ) - 63 ALLL balance, September 30, 2018 $ 1,812 $ 1,661 $ 1,467 $ 2,467 $ 88 $ 1,616 $ 9,111 Nine Months Ended September 30, 2018 ALLL balance, December 31, 2017 $ 1,864 $ 1,063 $ 1,343 $ 2,014 $ 43 $ 1,690 $ 8,017 Provision for loan losses or (recapture) 226 598 59 537 55 (74 ) 1,401 2,090 1,661 1,402 2,551 98 1,616 9,418 Loans charged-off (281 ) - - (84 ) (20 ) - (385 ) Recoveries of loans previously charged-off 3 - 65 - 10 - 78 Net (charge-offs) recoveries (278 ) - 65 (84 ) (10 ) - (307 ) ALLL balance, September 30, 2018 $ 1,812 $ 1,661 $ 1,467 $ 2,467 $ 88 $ 1,616 $ 9,111 As of September 30, 2018 ALLL amounts allocated to Individually evaluated for impairment $ 117 $ - $ - $ - $ - $ - $ 117 Collectively evaluated for impairment 1,695 1,661 1,467 2,467 88 1,616 8,994 ALLL balance, September 30, 2018 $ 1,812 $ 1,661 $ 1,467 $ 2,467 $ 88 $ 1,616 $ 9,111 Loans individually evaluated for impairment $ 1,170 $ - $ 74 $ 1,277 $ - $ 2,521 Loans collectively evaluated for impairment 84,384 62,222 91,921 501,505 2,583 742,615 Loan balance, September 30, 2018 $ 85,554 $ 62,222 $ 91,995 $ 502,782 $ 2,583 $ 745,136 The following tables summarize the allocation of the allowance for loan loss, as well as the activity in the allowance for loan loss attributed to various segments in the loan portfolio, as of and for the three and nine months ended September 30, 2017: Commercial and Industrial Construction, Land, and Land Development Residential Real Estate Commercial Real Estate Consumer and Other Unallocated Total (dollars in thousands) Three Months Ended September 30, 2017 ALLL balance, June 30, 2017 $ 1,881 $ 1,167 $ 1,181 $ 1,968 $ 37 $ 1,655 $ 7,889 Provision for loan losses or (recapture) 26 (114 ) (62 ) 42 3 170 65 1,907 1,053 1,119 2,010 40 1,825 7,954 Loans charged-off (6 ) - - - (3 ) - (9 ) Recoveries of loans previously charged-off 1 - - - 1 - 2 Net (charge-offs) recoveries (5 ) - - - (2 ) - (7 ) ALLL balance, September 30, 2017 $ 1,902 $ 1,053 $ 1,119 $ 2,010 $ 38 $ 1,825 $ 7,947 Nine Months Ended September 30, 2017 ALLL balance, December 31, 2016 $ 1,606 $ 1,398 $ 1,495 $ 1,474 $ 26 $ 1,545 $ 7,544 Provision for loan losses or (recapture) 314 (440 ) (376 ) 709 17 280 504 1,920 958 1,119 2,183 43 1,825 8,048 Loans charged-off (20 ) - - (173 ) (7 ) - (200 ) Recoveries of loans previously charged-off 2 95 - - 2 - 99 Net (charge-offs) recoveries (18 ) 95 - (173 ) (5 ) - (101 ) ALLL balance, September 30, 2017 $ 1,902 $ 1,053 $ 1,119 $ 2,010 $ 38 $ 1,825 $ 7,947 As of September 30, 2017 ALLL amounts allocated to Individually evaluated for impairment $ 60 $ - $ - $ - $ - $ - $ 60 Collectively evaluated for impairment 1,842 1,053 1,119 2,010 38 1,825 7,887 ALLL balance, September 30, 2017 $ 1,902 $ 1,053 $ 1,119 $ 2,010 $ 38 $ 1,825 $ 7,947 Loans individually evaluated for impairment $ 217 $ - $ - $ - $ - $ 217 Loans collectively evaluated for impairment 87,201 41,098 66,962 433,707 1,870 630,838 Loan balance, September 30, 2017 $ 87,418 $ 41,098 $ 66,962 $ 433,707 $ 1,870 $ 631,055 The following tables summarizes the allocation of the allowance for loan loss attributed to various segments in the loan portfolio as of December 31, 2017: Commercial and Industrial Construction, Land, and Land Development Residential Real Estate Commercial Real Estate Consumer and Other Unallocated Total (dollars in thousands) As of December 31, 2017 ALLL amounts allocated to Individually evaluated for impairment $ - $ - $ - $ - $ - $ - $ - Collectively evaluated for impairment 1,864 1,063 1,343 2,014 43 1,690 8,017 ALLL balance, December 31, 2017 $ 1,864 $ 1,063 $ 1,343 $ 2,014 $ 43 $ 1,690 $ 8,017 Loans individually evaluated for impairment $ 1,065 $ - $ 89 $ 1,660 $ - $ 2,814 Loans collectively evaluated for impairment 87,623 41,641 86,942 436,057 2,058 654,321 Loan balance, December 31, 2017 $ 88,688 $ 41,641 $ 87,031 $ 437,717 $ 2,058 $ 657,135 |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2018 | |
Deposits [Abstract] | |
Deposits | Note 5 - Deposits The composition of consolidated deposits consisted of the following at the periods indicated: September 30, December 31, 2018 2017 (dollars in thousands) Demand, noninterest bearing $ 285,979 $ 242,358 Now and money market 340,930 326,412 Savings 49,430 43,876 Time deposits less than $250,000 63,715 60,445 Time deposits $250,000 and over 34,668 30,204 Total deposits $ 774,722 $ 703,295 The following table presents the maturity distribution of time deposits as of September 30, 2018 (dollars in thousands): Twelve months $ 57,755 One to two years 28,412 Two to three years 8,652 Three to four years 1,560 Four to five years 2,004 $ 98,383 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 6 - Stock-Based Compensation Stock Options and Restricted Stock On April 30, 2018, the Company’s shareholders approved the Coastal Financial Corporation 2018 Omnibus Incentive Plan (2018 Plan). The 2018 Plan authorizes the Company to grant awards, including but not limited to, stock options and restricted stock awards, to eligible employees, directors or individuals that provide service to the Company, up to an aggregate of 500,000 shares of common stock. The 2018 Plan replaces both the 2006 Plan and our Directors’ Stock Bonus Plan (2006 Plan). Existing awards will vest under the terms granted and no further awards will be made under these previous plans. Shares available to be granted under the 2018 plan were 500,000 at September 30, 2018. Stock Option Awards In January 2018, the Company granted 28,546 nonqualified stock options under the 2006 Plan to an employee, which vest ratably over 10 years. The Company also granted 87,500 qualified stock options under the 2006 Plan to employees, which vest ratably over 10 years. The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model that uses the assumptions noted in the following table. Expected volatilities are based on historical volatility of the Company’s stock and other factors. The Company uses the vesting term and contractual life to determine the expected life. The risk-free interest rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. Compensation expense related to unvested stock option awards is reversed at date of forfeiture. The following assumptions were used to estimate the value of options granted under the 2006 Plan prior to the 2006 Plan being replaced by the 2018 Plan in the periods indicated: Nine months ended September 30, 2018 Nine months ended September 30, 2017 Expected term 10.0 years 10.0 years Expected stock price volatility 41.89 % 43.41 % Risk-free interest rate 2.66 % 2.51 % Expected dividends Zero Zero Weighted average grant date fair value $ 3.95 $ 3.70 A summary of stock option activity under the Company’s Plan during the nine months ended September 30, 2018: Options Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Outstanding at December 31, 2017 668,934 $ 6.12 6.36 Granted 116,046 7.10 Exercised (55,670 ) 6.09 Forfeited or expired (47,120 ) 6.54 Outstanding at September 30, 2018 682,190 $ 6.26 6.58 Exercisable at September 30, 2018 207,035 $ 5.97 5.19 The total intrinsic value (which is the amount by which the stock price exceeds the exercise price) of options exercised during the three and nine months ended September 30, 2018 was $106,000 and $173,000, respectively. The intrinsic value of options exercised during the three and nine months ended September 30, 2017 was negligible. As of September 30, 2018, there was $1,621,000 of total unrecognized compensation cost related to nonvested stock options granted under the Plan. Total unrecognized compensation costs is adjusted for unvested forfeitures. The Company expects to recognize that cost over a weighted-average period of approximately 7.0 years. Restricted Stock Awards The fair value of restricted stock awards is equal to the fair value of the Company’s stock at the date of grant. Compensation expense is recognized over the vesting period that the awards are based. Restricted stock awards are participating securities. The Company’s nonvested shares at September 30, 2018 and December 31, 2017 totaled 1,200 and 1,400 shares, respectively, and were issued with weighted average grant date fair value of $6.25. Director’s Stock Bonus The Company adopted and subsequently amended the Director’s Stock Bonus Plan (Bonus Plan). The Bonus Plan was replaced on April 30, 2018, when the shareholders approved the 2018 Omnibus Incentive Plan. Under the Bonus Plan, the Company could grant up to 50,000 shares. Stock was granted to directors who have attended at least 75% of the scheduled board meetings during the prior year. Grants cliff vest over two years from date awarded, contingent on the director still being a director of the Company. During the vesting period, the grants are considered participating securities. Grants also immediately vest when a director has attained the retirement age of 72 and retires from the Board. The Bonus Plan granted shares with a total market value of $5,000 per director, per year, with the exception of the board chairman receiving $7,500 per year, and committee chairmen receiving $6,250 per year. Directors unable to receive stock will receive cash in lieu upon completion of the vesting period. Cash awards are recognized over the vesting period and recorded in other liabilities until paid. The amended Bonus Plan would have expired on May 31, 2018 if it was not replaced on April 30, 2018. Awards previously granted under the Bonus Plan will vest under the term granted. In January 2018, there were 4,405 shares granted to five directors at an estimated fair value of $7.10 per share. During 2017, there were 4,808 shares granted to five directors at an estimated fair value of $6.50 per share. Compensation expense recorded related to the Plan totaled $8,000 for the three months ended September 30, 2018 and 2017 and $23,000 for the nine months ended September 30, 2018 and 2017. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Shareholders Equity | Note 7 - Shareholders’ Equity On May 4, 2018 the Company effected a 1-for-5 reverse stock split, decreasing the number of issued shares from 46,268,359 to 9,254,073, including 401 additional shares issued to shareholders with fractional shares. Authorized shares were not impacted by the reverse stock split. Share and per share amounts included in the consolidated financial statements and accompanying notes reflect the effect of the split for all periods presented. During 2017, the Articles of Incorporation of the Company were amended to increase the total authorized preferred stock from 500,000 shares to 25,000,000 shares. There were no shares of preferred stock issued and outstanding at September 30, 2018 and December 31, 2017. During 2017, the Articles of Incorporation of the Company were amended to increase total authorized common shares to 300,000,000 shares, an increase of 200,000,000 from the 100,000,000 common shares previously authorized. At September 30, 2018 and December 31, 2017, there were 11,886,473 and 8,887,457 common shares issued and outstanding. During 2017, the Articles of Incorporation of the Company were amended to provide that 1,000,000 shares of common stock, out of the 300,000,000 shares authorized, be designated as Class B nonvoting common shares. On September 26, 2018 all 100,000 shares of Class B nonvoting common stock were exchanged for voting common stock on terms and conditions approved by the Company’s board of directors. At December 31, 2017, there were 100,000 shares of Class B nonvoting common stock issued and outstanding. During 2017, the Articles of Incorporation of the Company were amended to provide that up to 100,000,000 shares of common stock, out of the 300,000,000 shares authorized, may be designated as Class C nonvoting common shares. On September 26, 2018, 261,444 Class C shares were exchanged for common stock on terms and conditions approved by the Company’s board of directors. At December 31, 2017, there were 261,444 shares of Class C nonvoting common stock issued and outstanding. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 8 - Fair Value Measurements The following tables present estimated fair values of the Company’s financial instruments as of the period indicated, whether or not recognized or recorded in the consolidated balance sheets at the period indicated: September 30, 2018 Fair Value Measurements Using Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 (dollars in thousands) Financial assets Cash and due from banks $ 16,837 $ 16,837 $ 16,837 $ - $ - Interest earning deposits with other banks 98,671 98,671 98,671 - - Investment securities 37,039 36,955 32,329 4,626 - Other investments 3,766 3,766 - 3,766 - Loans receivable, net (1) 735,209 711,772 - - 711,772 Accrued interest receivable 2,299 2,299 - 2,299 - Financial liabilities Deposits (1) $ 774,722 773,497 $ - $ 773,497 $ - FHLB advances 20,000 20,000 - 20,000 - Subordinated debt 9,961 9,570 - 9,570 - Junior subordinated debentures 3,581 3,112 - 3,112 - Capital lease 88 86 - 86 - Accrued interest payable 257 257 - 257 - (1) The estimated fair value of loans receivable, net and deposits for September 30, 2018 reflect exit price assumptions. The December 31, 2017 fair value estimates may not reflect based on exit price assumptions. December 31, 2017 Fair Value Measurements Using Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 (dollars in thousands) Financial assets Cash and due from banks $ 13,787 $ 13,787 $ 13,787 $ - $ - Interest earning deposits with other banks 75,964 75,891 75,891 - - Investment securities 38,336 38,301 33,396 4,905 - Other investments 3,680 3,680 - 3,680 - Loans receivable, net 648,771 636,334 - - 636,334 Accrued interest receivable 2,274 - - 2,274 - Financial liabilities Deposits $ 703,295 $ 702,525 $ - $ 702,525 $ - FHLB advances 20,000 20,000 - 20,000 - Subordinated debt 9,950 9,601 - 9,601 - Junior subordinated debentures 3,579 2,978 - 2,978 - Capital lease 137 134 - 134 - Accrued interest payable 228 - - 228 - The Company measures and discloses certain assets and liabilities at fair value. Fair value is defined as 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 (that is, not a forced liquidation or distressed sale). GAAP establishes a consistent framework for measuring fair value and disclosure requirements about fair value measurements. Among other things, the accounting standard requires the reporting entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s estimates for market assumptions. These two types of inputs create the following fair value hierarchy: • Level 1 – Quoted prices in active markets for identical instruments. An active market is a market in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available. • Level 2 – Observable inputs other than Level 1 including quoted prices in active markets for similar instruments, quoted prices in less active markets for identical or similar instruments, or other observable inputs that can be corroborated by observable market data. • Level 3 – Unobservable inputs supported by little or no market activity for financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation; also includes observable inputs from non-binding single dealer quotes not corroborated by observable market data. The estimated fair value amounts of financial instruments have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize at a future date. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. In addition, reasonable comparability between financial institutions may not be likely due to the wide range of permitted valuation techniques and numerous estimates that must be made given the absence of active secondary markets for certain financial instruments. This lack of uniform valuation methodologies also introduces a greater degree of subjectivity to these estimated fair values. Items measured at fair value on a recurring basis – The following fair value hierarchy table presents information about the Company’s assets that are measured at fair value on a recurring basis at the dates indicated: Level 1 Level 2 Level 3 Total Fair Value (dollars in thousands) September 30, 2018 Available-for-sale U.S. Treasury securities $ 32,329 $ - $ - $ 32,329 U.S. Government agencies - 2,941 - 2,941 U.S. Agency collateralized mortgage obligations - 182 - 182 U.S. Agency residential mortgage-backed securities - 43 - 43 Municipals - 254 - 254 $ 32,329 $ 3,420 $ - $ 35,749 December 31, 2017 Available-for-sale U.S. Treasury securities $ 33,396 $ - $ - $ 33,396 U.S. Government agencies - 2,970 - 2,970 U.S. Agency collateralized mortgage obligations - 260 - 260 U.S. Agency residential mortgage-backed securities - 81 - 81 Municipals - 220 - 220 $ 33,396 $ 3,531 $ - $ 36,927 The following methods were used to estimate the fair value of the class of financial instruments above: Investment securities - The fair value of securities is based on quoted market prices, pricing models, quoted prices of similar securities, independent pricing sources, and discounted cash flows. Limitations: The fair value estimates presented herein are based on pertinent information available to management as of September 30, 2018 and December 31, 2017. The factors used in the fair values estimates are subject to change subsequent to the dates the fair value estimates are completed, therefore, current estimates of fair value may differ significantly from the amounts presented herein. Assets measured at fair value using significant unobservable inputs (Level 3) The following table provides a description of the valuation technique, unobservable inputs, and qualitative information about the unobservable inputs for the Company’s assets and liabilities classified as Level 3 and measured at fair value on a nonrecurring basis at the dates indicated: Valuation Technique Unobservable Inputs September 30, 2018 Weighted Average Rate December 31, 2017 Weighted Average Rate Impaired loans Collateral valuations Discount to appraised value 9 % 13 % Items measured at fair value on a nonrecurring basis – The following table presents financial assets and liabilities measured at fair value on a nonrecurring basis and the level within the fair value hierarchy of the fair value measurements for those assets at the dates indicated: Level 1 Level 2 Level 3 Total Fair Value (dollars in thousands) September 30, 2018 Impaired loans $ - $ - $ 493 $ 493 Total $ - $ - $ 493 $ 493 December 31, 2017 Impaired loans $ - $ - $ 508 $ 508 Total $ - $ - $ 508 $ 508 The amounts disclosed above represent the fair values at the time the nonrecurring fair value measurements were made, and not necessarily the fair value as of the dates reported on. Impaired loans - A loan is considered impaired when it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement. Impairment is measured based on the fair value of the underlying collateral or the discounted cash expected future cash flows. Subsequent changes in the value of impaired loans are included within the provision for loan losses in the same manner in which impairment initially was recognized or as a reduction in the provision that would otherwise be reported. Impaired loans are evaluated quarterly to determine if valuation adjustments should be recorded. The need for valuation adjustments arises when observable market prices or current appraised values of collateral indicate a shortfall in collateral value compared to current carrying values of the related loan. If the Company determines that the value of the impaired loan is less than the carrying value of the loan, the Company either establishes an impairment reserve as a specific component of the allowance for loan losses or charges off the impairment amount. These valuation adjustments are considered nonrecurring fair value adjustments. |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Note 9 - Earnings Per Common Share The following is a computation of basic and diluted earnings per common share at the periods indicated: Three months ended Nine months ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 (dollars in thousands, except share data) (dollars in thousands, except share data) Net Income $ 2,602 $ 1,904 $ 6,646 $ 5,093 Basic weighted average number common shares outstanding 11,338,320 9,235,344 9,956,449 9,233,421 Dilutive effect of share-based compensation 271,658 3,464 94,966 2,754 Diluted weighted average number common shares outstanding 11,609,978 9,238,808 10,051,415 9,236,175 Basic earnings per share $ 0.23 $ 0.21 $ 0.67 $ 0.55 Diluted earnings per share $ 0.22 $ 0.21 $ 0.66 $ 0.55 For the three and nine month periods ended September 30, 2018 and 2017, the difference in earnings per share under the two-class method was not significant. There were no antidilutive shares that impacted the diluted earnings per share calculation for the three months ended September 30, 2018. Options to purchase an additional 599,026 share of common stock, for the three months ended September 30, 2017 were not included in the computation of diluted earnings per common share because their effect resulted in them being antidilutive. For the nine months ended September 30, 2018 and 2017 options to purchase an additional 261,051 and 649,396 shares of common stock, respectively, were not included in the computation of diluted earnings per common share because their effect resulted in them being antidilutive. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of operations - Coastal Financial Corporation (Corporation or Company) is a registered bank holding company whose wholly owned subsidiary is Coastal Community Bank (Bank). The Company is a Washington state corporation that was organized in 2003. The Bank was incorporated and commenced operations in 1997 and is a Washington state-chartered commercial bank and Federal Reserve System (Federal Reserve) state member bank. The Company provides a full range of banking services to small and medium-sized businesses, professionals, and individuals throughout the greater Puget Sound area through its 14 branches in Snohomish, Island, and King Counties, the Internet, and its mobile banking application. The Bank’s main branch and the headquarters of the Bank and Company are located in Everett, Washington. The Bank’s deposits are insured in whole or in part by the Federal Deposit Insurance Corporation (FDIC). The Bank’s loans and deposits are primarily within the greater Puget Sound area, and the Bank’s primary funding source is deposits from customers. The Bank is subject to regulation by the Federal Reserve and the Washington State Department of Financial Institutions Division of Banks. The Federal Reserve also has supervisory authority over the Company. |
Financial Statement Preparation | Financial statement presentation - The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim reporting requirements and with instructions to Form 10-Q and Article 10 of Regulation S-X, and therefore do not include all the information and notes included in the annual consolidated financial statements in conformity with GAAP. These interim condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes included elsewhere in this report. Operating results for the three and nine months ended September 30, 2018, are not necessarily indicative of the results that may be expected for future periods. Amounts presented in the consolidated financial statements and footnote tables are rounded and presented in thousands of dollars except per-share amounts, which are presented in dollars. In the narrative footnote discussion, amounts are rounded to thousands and presented in dollars. In management’s opinion, all accounting adjustments necessary to accurately reflect the financial position and results of operations on the accompanying consolidated financial statements have been made. These adjustments include normal and recurring accruals considered necessary for a fair and accurate presentation. |
Principles of Consolidation | Principles of consolidation - The consolidated financial statements include the accounts of the Company and the Bank. All significant intercompany accounts have been eliminated in consolidation. |
Business Segments | Business Segments - The Company is managed by legal entity and not by lines of business. The entity’s primary business is that of a traditional banking institution, gathering deposits and originating loans for portfolio in its market areas. The Bank offers a wide vari ety of deposit products to its customers. Lending activities include the origination of real estate, commercial and industrial, and consumer loans. Interest income on loans is the Company’s primary source of revenue, and is supplemented by interest income on deposits with other banks, interest income from investment securities, deposit service charges, and other service provided activities. The Company has determined that its current business and operations consist of a single reporting segment and, therefore, segment disclosures are not required. |
Estimates | Estimates - The preparation of financial statements in conformity with GAAP requires management 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Management believes that its critical accounting policies include determining the allowance for loan losses, the fair value of the Company’s investment securities, deferred tax assets, and financial instruments. Actual results could differ significantly from those estimates. |
Subsequent Events | Subsequent Events - The Company has evaluated events and transactions subsequent to September 30, 2018 for potential recognition or disclosure. On October 9 th |
Accounting Policies | Accounting policies – Our complete accounting policies are described in Note 1, summary of significant accounting policies of the Company’s audited consolidated financial statements as of and for the years ended December 31, 2017 and 2016 included in the Form S-1 filed with the SEC. |
Reclassifications | Reclassifications - Certain amounts reported in prior quarters' consolidated financial statements have been reclassified to conform to the current presentation with no effect on stockholders’ equity or net income. |
Accounting Standards Adopted in 2018 | Accounting Standards Adopted in 2018 On January 1, 2018, the Company adopted Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) The Company concluded that there is no change to the timing and pattern of revenue recognition for its current revenue streams or the presentation of revenue as gross versus net. No adjustment to retained earnings was required on the adoption date. Because there is no change to the timing and pattern of revenue recognition, there are no material changes to the Company’s processes and internal controls. All of the Company’s revenue from contracts with customers within the scope of ASC 606 is recognized within noninterest income. A description of the Company’s revenue streams accounted for under ASC 606 is as follows: Service Charges on Deposit Accounts: Interchange Income: Merchant Service Fees: Wholesale Banking Service Fees: Loan Referral Fees: Mortgage Broker Fees: As of January 1, 2018, the Company adopted FASB ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10) In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Receipts and Cash Payments In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. In February 2018, the FASB issued ASU No. 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. In May 2018, the FASB issued ASU No. 2018-06, Codification Improvements to Topic 942, Financial Services - Depository and Lending. Accounting for Net Deferred Tax Charges |
Recent Accounting Guidance Not Yet Effective | Recent Accounting Guidance Not Yet Effective In February 2016, FASB issued ASU 2016-02, Leases (Topic 842) In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. This ASU was issued to expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. Previously, these awards were recorded at the fair value of consideration received or the fair value of the equity instruments issued and was measured as of the earlier of the commitment date or the date performance was completed. The amendments in this ASU require the awards to be measured at the grant-date fair value of the equity instrument. ASU No. 2018-07 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, but no earlier than an entity's adoption of Topic 606. The adoption of ASU No. 2018-07 is not expected to have a material impact on the Company's future consolidated financial statements. |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Amortized Cost and Fair Values of Investment Securities | The amortized cost and fair values of investment securities at the date indicated are as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (dollars in thousands) September 30, 2018 Available-for-sale U.S. Treasury securities $ 34,821 $ - $ (2,492 ) $ 32,329 U.S. Government agencies 3,000 - (59 ) 2,941 U.S. Agency collateralized mortgage obligations 188 - (6 ) 182 U.S. Agency residential mortgage-backed securities 43 - - 43 Municipals 259 - (5 ) 254 Total available-for-sale securities 38,311 - (2,562 ) 35,749 Held-to-maturity U.S. Agency residential mortgage-backed securities 1,290 - (84 ) 1,206 Total investment securities $ 39,601 $ - $ (2,646 ) $ 36,955 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (dollars in thousands) December 31, 2017 Available-for-sale U.S. Treasury securities $ 34,794 $ - $ (1,398 ) $ 33,396 U.S. Government agencies 3,000 - (30 ) 2,970 U.S. Agency collateralized mortgage obligations 224 - (3 ) 221 U.S. Agency residential mortgage-backed securities 79 1 - 80 Municipals 261 - (1 ) 260 Total available-for-sale securities 38,358 1 (1,432 ) 36,927 Held-to-maturity U.S. Agency residential mortgage-backed securities 1,409 - (35 ) 1,374 Total investment securities $ 39,767 $ 1 $ (1,467 ) $ 38,301 |
Amortized Cost and Fair Value of Debt Securities by Contractual Maturity | Mortgage-backed securities and collateralized mortgage obligations are shown separately, since they are not due at a single maturity date. Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value (dollars in thousands) Amounts maturing in One year or less $ - $ - $ - $ - After one year through five years 27,838 26,141 - - After five years through ten years 10,242 9,383 - - 38,080 35,524 - - U.S. Agency residential mortgage-backed securities and collateralized mortgage obligations 231 225 1,290 1,206 $ 38,311 $ 35,749 $ 1,290 $ 1,206 |
Summary of Investment Securities Continuous Unrealized Loss Position | Information pertaining to securities with gross unrealized losses at the dates indicated, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: Less Than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (dollars in thousands) September 30, 2018 Available-for-sale U.S. Treasury securities $ - $ - $ 32,329 $ (2,492 ) $ 32,329 $ (2,492 ) U.S. Government agencies - - 2,941 (59 ) 2,941 (59 ) U.S. Agency collateralized mortgage obligations - - 182 (6 ) 182 (6 ) Municipals 254 (5 ) - - 254 (5 ) Total available-for-sale securities 254 (5 ) 35,452 (2,557 ) 35,706 (2,562 ) Held-to-maturity U.S. Agency residential mortgage-backed securities - - 1,206 (84 ) 1,206 (84 ) Total investment securities $ 254 $ (5 ) $ 36,658 $ (2,641 ) $ 36,912 $ (2,646 ) December 31, 2017 Available-for-sale U.S. Treasury securities $ 4,934 $ (77 ) $ 28,463 $ (1,321 ) $ 33,397 $ (1,398 ) U.S. Government agencies - - 2,970 (30 ) 2,970 (30 ) U.S. Agency collateralized mortgage obligations 220 (3 ) - - 220 (3 ) Municipals 260 (1 ) - - 260 (1 ) Total available-for-sale securities 5,414 (81 ) 31,433 (1,351 ) 36,847 (1,432 ) Held-to-maturity U.S. Agency residential mortgage-backed securities - - 1,374 (35 ) 1,374 (35 ) Total investment securities $ 5,414 $ (81 ) $ 32,807 $ (1,386 ) $ 38,221 $ (1,467 ) |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Composition of Loan Portfolio | The composition of the loan portfolio is as follows as of the periods indicated: September 30, December 31, 2018 2017 (dollars in thousands) Commercial and industrial loans $ 85,554 $ 88,688 Real estate loans: Construction, land, and land development 62,222 41,641 Residential real estate 91,995 87,031 Commercial real estate 502,782 437,717 Consumer and other loans 2,583 2,058 Gross loans receivable 745,136 657,135 Net deferred origination fees and premiums (816 ) (347 ) Loans receivable $ 744,320 $ 656,788 |
Summary of an Age Analysis of Past Due Loans | The following table illustrates an age analysis of past due loans as of the dates indicated: 30-89 Days Past Due 90 Days or More Past Due Total Past Due Current Total Loans Recorded Investment 90 Days or More Past Due and Still Accruing (dollars in thousands) September 30, 2018 Commercial and industrial loans $ 695 $ 703 $ 1,398 $ 84,156 $ 85,554 $ - Real estate loans: Construction, land and land development - - - 62,222 62,222 - Residential real estate - 74 74 91,921 91,995 - Commercial real estate - - - 502,782 502,782 - Consumer and other loans - - - 2,583 2,583 - $ 695 $ 777 $ 1,472 $ 743,664 $ 745,136 $ - Less net deferred origination fees (816 ) Loans receivable $ 744,320 30-89 Days Past Due 90 Days or More Past Due Total Past Due Current Total Loans Recorded Investment 90 Days or More Past Due and Still Accruing (dollars in thousands) December 31, 2017 Commercial and industrial loans $ 791 $ 372 $ 1,163 $ 87,525 $ 88,688 $ - Real estate loans: Construction, land and land development 218 - 218 41,423 41,641 - Residential real estate 76 - 76 86,955 87,031 - Commercial real estate 333 345 678 437,039 437,717 - Consumer and other loans - - - 2,058 2,058 - $ 1,418 $ 717 $ 2,135 $ 655,000 657,135 $ - Less net deferred origination fees (347 ) Loans receivable $ 656,788 |
Summary of Information Pertaining to Impaired Loans | A summary of information pertaining to impaired loans as of the period indicated: Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance (dollars in thousands) September 30, 2018 Commercial and industrial loans $ 1,447 $ 703 $ 467 $ 1,170 $ 117 Real estate loans: Residential real estate 75 74 - 74 - Commercial real estate 1,495 1,277 - 1,277 - Total $ 3,017 $ 2,054 $ 467 $ 2,521 $ 117 December 31, 2017 Commercial and industrial loans $ 1,123 $ 1,065 $ - $ 1,065 $ - Real estate loans: Residential real estate 94 89 - 89 - Commercial real estate 2,249 1,660 - 1,660 - Total $ 3,466 $ 2,814 $ - $ 2,814 $ - |
Summary of Our Average Recorded Investment and Interest Income Recognized on Impaired Loans | The following tables summarize our average recorded investment and interest income recognized on impaired loans by loan class for the three and nine months ended September 30, 2018 and 2017: Three Months Ended September 30, 2018 September 30, 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (dollars in thousands) Commercial and industrial loans $ 995 $ 3 $ 219 $ - Real estate loans: Residential real estate 74 - - - Commercial real estate 1,284 - - - Total $ 2,353 $ 3 $ 219 $ - Nine Months Ended September 30, 2018 September 30, 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (dollars in thousands) Commercial and industrial loans $ 1,371 $ 28 $ 247 $ - Real estate loans: Construction, land and land development - - 1,281 17 Residential real estate 306 5 97 - Commercial real estate 1,296 - 5,388 27 Total $ 2,973 $ 33 $ 7,013 $ 44 |
Summary of Troubled Debt Restructurings by Accrual Versus Nonaccrual Status and by Loan Class | The following table presents troubled debt restructurings by accrual versus nonaccrual status and by loan class as of the period indicated: Accrual Status Nonaccrual Status Total Restructured Loans (dollars in thousands) September 30, 2018 Commercial real estate $ - $ 1,277 $ 1,277 December 31, 2017 Commercial real estate $ - $ 1,315 $ 1,315 |
Analysis of Nonaccrual Loans by Category | An analysis of nonaccrual loans by category consisted of the following at the periods indicated: September 30, December 31, 2018 2017 (dollars in thousands) Commercial and industrial loans $ 1,170 $ 372 Real estate loans: Residential real estate 74 88 Commercial real estate 1,277 1,660 Total nonaccrual loans $ 2,521 $ 2,120 |
Summary of Loans by Credit Quality Risk Rating | Loans by credit quality risk rating are as follows as of the periods indicated: Pass Other Loans Especially Mentioned Sub- Standard Doubtful Total (dollars in thousands) September 30, 2018 Commercial and industrial loans $ 81,751 $ 2,248 $ 1,555 $ - $ 85,554 Real estate loans: Construction, land, and land development 59,707 2,515 - - 62,222 Residential real estate 91,796 125 74 - 91,995 Commercial real estate 499,223 2,282 1,277 - 502,782 Consumer and other loans 2,583 - - - 2,583 $ 735,060 $ 7,170 $ 2,906 $ - 745,136 Less net deferred origination fees (816 ) Loans receivable $ 744,320 December 31, 2017 Commercial and industrial loans $ 87,247 $ 376 $ 902 $ 163 $ 88,688 Real estate loans: Construction, land, and land development 39,081 2,560 - - 41,641 Residential real estate 86,464 479 88 - 87,031 Commercial real estate 434,421 1,636 1,315 345 437,717 Consumer and other loans 2,058 - - - 2,058 $ 649,271 $ 5,051 $ 2,305 $ 508 657,135 Less net deferred origination fees (347 ) Loans receivable $ 656,788 |
Summary of Allocation of Allowance for Loan Loss as well as Activity in Allowance for Loan Loss Attributed to Various Segments in Loan | The following tables summarize the allocation of the allowance for loan loss, as well as the activity in the allowance for loan loss attributed to various segments in the loan portfolio, as of and for the three and nine months ended September 30, 2018: Commercial and Industrial Construction, Land, and Land Development Residential Real Estate Commercial Real Estate Consumer and Other Unallocated Total (dollars in thousands) Three Months Ended September 30, 2018 ALLL balance, June 30, 2018 $ 1,821 $ 1,238 $ 1,395 $ 2,303 $ 52 $ 1,731 $ 8,540 Provision for loan losses or (recapture) (10 ) 423 7 164 39 (115 ) 508 1,811 1,661 1,402 2,467 91 1,616 9,048 Loans charged-off - - - - (6 ) - (6 ) Recoveries of loans previously charged-off 1 - 65 - 3 - 69 Net (charge-offs) recoveries 1 - 65 - (3 ) - 63 ALLL balance, September 30, 2018 $ 1,812 $ 1,661 $ 1,467 $ 2,467 $ 88 $ 1,616 $ 9,111 Nine Months Ended September 30, 2018 ALLL balance, December 31, 2017 $ 1,864 $ 1,063 $ 1,343 $ 2,014 $ 43 $ 1,690 $ 8,017 Provision for loan losses or (recapture) 226 598 59 537 55 (74 ) 1,401 2,090 1,661 1,402 2,551 98 1,616 9,418 Loans charged-off (281 ) - - (84 ) (20 ) - (385 ) Recoveries of loans previously charged-off 3 - 65 - 10 - 78 Net (charge-offs) recoveries (278 ) - 65 (84 ) (10 ) - (307 ) ALLL balance, September 30, 2018 $ 1,812 $ 1,661 $ 1,467 $ 2,467 $ 88 $ 1,616 $ 9,111 As of September 30, 2018 ALLL amounts allocated to Individually evaluated for impairment $ 117 $ - $ - $ - $ - $ - $ 117 Collectively evaluated for impairment 1,695 1,661 1,467 2,467 88 1,616 8,994 ALLL balance, September 30, 2018 $ 1,812 $ 1,661 $ 1,467 $ 2,467 $ 88 $ 1,616 $ 9,111 Loans individually evaluated for impairment $ 1,170 $ - $ 74 $ 1,277 $ - $ 2,521 Loans collectively evaluated for impairment 84,384 62,222 91,921 501,505 2,583 742,615 Loan balance, September 30, 2018 $ 85,554 $ 62,222 $ 91,995 $ 502,782 $ 2,583 $ 745,136 The following tables summarize the allocation of the allowance for loan loss, as well as the activity in the allowance for loan loss attributed to various segments in the loan portfolio, as of and for the three and nine months ended September 30, 2017: Commercial and Industrial Construction, Land, and Land Development Residential Real Estate Commercial Real Estate Consumer and Other Unallocated Total (dollars in thousands) Three Months Ended September 30, 2017 ALLL balance, June 30, 2017 $ 1,881 $ 1,167 $ 1,181 $ 1,968 $ 37 $ 1,655 $ 7,889 Provision for loan losses or (recapture) 26 (114 ) (62 ) 42 3 170 65 1,907 1,053 1,119 2,010 40 1,825 7,954 Loans charged-off (6 ) - - - (3 ) - (9 ) Recoveries of loans previously charged-off 1 - - - 1 - 2 Net (charge-offs) recoveries (5 ) - - - (2 ) - (7 ) ALLL balance, September 30, 2017 $ 1,902 $ 1,053 $ 1,119 $ 2,010 $ 38 $ 1,825 $ 7,947 Nine Months Ended September 30, 2017 ALLL balance, December 31, 2016 $ 1,606 $ 1,398 $ 1,495 $ 1,474 $ 26 $ 1,545 $ 7,544 Provision for loan losses or (recapture) 314 (440 ) (376 ) 709 17 280 504 1,920 958 1,119 2,183 43 1,825 8,048 Loans charged-off (20 ) - - (173 ) (7 ) - (200 ) Recoveries of loans previously charged-off 2 95 - - 2 - 99 Net (charge-offs) recoveries (18 ) 95 - (173 ) (5 ) - (101 ) ALLL balance, September 30, 2017 $ 1,902 $ 1,053 $ 1,119 $ 2,010 $ 38 $ 1,825 $ 7,947 As of September 30, 2017 ALLL amounts allocated to Individually evaluated for impairment $ 60 $ - $ - $ - $ - $ - $ 60 Collectively evaluated for impairment 1,842 1,053 1,119 2,010 38 1,825 7,887 ALLL balance, September 30, 2017 $ 1,902 $ 1,053 $ 1,119 $ 2,010 $ 38 $ 1,825 $ 7,947 Loans individually evaluated for impairment $ 217 $ - $ - $ - $ - $ 217 Loans collectively evaluated for impairment 87,201 41,098 66,962 433,707 1,870 630,838 Loan balance, September 30, 2017 $ 87,418 $ 41,098 $ 66,962 $ 433,707 $ 1,870 $ 631,055 The following tables summarizes the allocation of the allowance for loan loss attributed to various segments in the loan portfolio as of December 31, 2017: Commercial and Industrial Construction, Land, and Land Development Residential Real Estate Commercial Real Estate Consumer and Other Unallocated Total (dollars in thousands) As of December 31, 2017 ALLL amounts allocated to Individually evaluated for impairment $ - $ - $ - $ - $ - $ - $ - Collectively evaluated for impairment 1,864 1,063 1,343 2,014 43 1,690 8,017 ALLL balance, December 31, 2017 $ 1,864 $ 1,063 $ 1,343 $ 2,014 $ 43 $ 1,690 $ 8,017 Loans individually evaluated for impairment $ 1,065 $ - $ 89 $ 1,660 $ - $ 2,814 Loans collectively evaluated for impairment 87,623 41,641 86,942 436,057 2,058 654,321 Loan balance, December 31, 2017 $ 88,688 $ 41,641 $ 87,031 $ 437,717 $ 2,058 $ 657,135 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Deposits [Abstract] | |
Composition of Consolidated Deposits | The composition of consolidated deposits consisted of the following at the periods indicated: September 30, December 31, 2018 2017 (dollars in thousands) Demand, noninterest bearing $ 285,979 $ 242,358 Now and money market 340,930 326,412 Savings 49,430 43,876 Time deposits less than $250,000 63,715 60,445 Time deposits $250,000 and over 34,668 30,204 Total deposits $ 774,722 $ 703,295 |
Schedule of Maturity Distribution of Time Deposits | The following table presents the maturity distribution of time deposits as of September 30, 2018 (dollars in thousands): Twelve months $ 57,755 One to two years 28,412 Two to three years 8,652 Three to four years 1,560 Four to five years 2,004 $ 98,383 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Assumptions Used to Estimate the Value of Options Granted | The following assumptions were used to estimate the value of options granted under the 2006 Plan prior to the 2006 Plan being replaced by the 2018 Plan in the periods indicated: Nine months ended September 30, 2018 Nine months ended September 30, 2017 Expected term 10.0 years 10.0 years Expected stock price volatility 41.89 % 43.41 % Risk-free interest rate 2.66 % 2.51 % Expected dividends Zero Zero Weighted average grant date fair value $ 3.95 $ 3.70 |
Summary of Stock Option Activity | A summary of stock option activity under the Company’s Plan during the nine months ended September 30, 2018: Options Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Outstanding at December 31, 2017 668,934 $ 6.12 6.36 Granted 116,046 7.10 Exercised (55,670 ) 6.09 Forfeited or expired (47,120 ) 6.54 Outstanding at September 30, 2018 682,190 $ 6.26 6.58 Exercisable at September 30, 2018 207,035 $ 5.97 5.19 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Estimated Fair Values of Financial Instruments | The following tables present estimated fair values of the Company’s financial instruments as of the period indicated, whether or not recognized or recorded in the consolidated balance sheets at the period indicated: September 30, 2018 Fair Value Measurements Using Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 (dollars in thousands) Financial assets Cash and due from banks $ 16,837 $ 16,837 $ 16,837 $ - $ - Interest earning deposits with other banks 98,671 98,671 98,671 - - Investment securities 37,039 36,955 32,329 4,626 - Other investments 3,766 3,766 - 3,766 - Loans receivable, net (1) 735,209 711,772 - - 711,772 Accrued interest receivable 2,299 2,299 - 2,299 - Financial liabilities Deposits (1) $ 774,722 773,497 $ - $ 773,497 $ - FHLB advances 20,000 20,000 - 20,000 - Subordinated debt 9,961 9,570 - 9,570 - Junior subordinated debentures 3,581 3,112 - 3,112 - Capital lease 88 86 - 86 - Accrued interest payable 257 257 - 257 - (1) The estimated fair value of loans receivable, net and deposits for September 30, 2018 reflect exit price assumptions. The December 31, 2017 fair value estimates may not reflect based on exit price assumptions. December 31, 2017 Fair Value Measurements Using Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 (dollars in thousands) Financial assets Cash and due from banks $ 13,787 $ 13,787 $ 13,787 $ - $ - Interest earning deposits with other banks 75,964 75,891 75,891 - - Investment securities 38,336 38,301 33,396 4,905 - Other investments 3,680 3,680 - 3,680 - Loans receivable, net 648,771 636,334 - - 636,334 Accrued interest receivable 2,274 - - 2,274 - Financial liabilities Deposits $ 703,295 $ 702,525 $ - $ 702,525 $ - FHLB advances 20,000 20,000 - 20,000 - Subordinated debt 9,950 9,601 - 9,601 - Junior subordinated debentures 3,579 2,978 - 2,978 - Capital lease 137 134 - 134 - Accrued interest payable 228 - - 228 - |
Summary of Assets Measured at Fair Value on Recurring Basis | Items measured at fair value on a recurring basis – The following fair value hierarchy table presents information about the Company’s assets that are measured at fair value on a recurring basis at the dates indicated: Level 1 Level 2 Level 3 Total Fair Value (dollars in thousands) September 30, 2018 Available-for-sale U.S. Treasury securities $ 32,329 $ - $ - $ 32,329 U.S. Government agencies - 2,941 - 2,941 U.S. Agency collateralized mortgage obligations - 182 - 182 U.S. Agency residential mortgage-backed securities - 43 - 43 Municipals - 254 - 254 $ 32,329 $ 3,420 $ - $ 35,749 December 31, 2017 Available-for-sale U.S. Treasury securities $ 33,396 $ - $ - $ 33,396 U.S. Government agencies - 2,970 - 2,970 U.S. Agency collateralized mortgage obligations - 260 - 260 U.S. Agency residential mortgage-backed securities - 81 - 81 Municipals - 220 - 220 $ 33,396 $ 3,531 $ - $ 36,927 |
Summary of Assets and Liabilities Classified as Level 3 and Measured at Fair Value on Nonrecurring Basis | The following table provides a description of the valuation technique, unobservable inputs, and qualitative information about the unobservable inputs for the Company’s assets and liabilities classified as Level 3 and measured at fair value on a nonrecurring basis at the dates indicated: Valuation Technique Unobservable Inputs September 30, 2018 Weighted Average Rate December 31, 2017 Weighted Average Rate Impaired loans Collateral valuations Discount to appraised value 9 % 13 % |
Summary of Financial Assets and Liabilities Measured at Fair Value on Nonrecurring Basis | Items measured at fair value on a nonrecurring basis – The following table presents financial assets and liabilities measured at fair value on a nonrecurring basis and the level within the fair value hierarchy of the fair value measurements for those assets at the dates indicated: Level 1 Level 2 Level 3 Total Fair Value (dollars in thousands) September 30, 2018 Impaired loans $ - $ - $ 493 $ 493 Total $ - $ - $ 493 $ 493 December 31, 2017 Impaired loans $ - $ - $ 508 $ 508 Total $ - $ - $ 508 $ 508 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Common Share | The following is a computation of basic and diluted earnings per common share at the periods indicated: Three months ended Nine months ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 (dollars in thousands, except share data) (dollars in thousands, except share data) Net Income $ 2,602 $ 1,904 $ 6,646 $ 5,093 Basic weighted average number common shares outstanding 11,338,320 9,235,344 9,956,449 9,233,421 Dilutive effect of share-based compensation 271,658 3,464 94,966 2,754 Diluted weighted average number common shares outstanding 11,609,978 9,238,808 10,051,415 9,236,175 Basic earnings per share $ 0.23 $ 0.21 $ 0.67 $ 0.55 Diluted earnings per share $ 0.22 $ 0.21 $ 0.66 $ 0.55 |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2018Branch | |
Accounting Policies [Abstract] | |
Entity incorporation, state name | The Company is a Washington state corporation that was organized in 2003. |
Number of branches | 14 |
Recent Accounting Standards - A
Recent Accounting Standards - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Mar. 31, 2018 | Sep. 30, 2018 | |
ASU No. 2018-02 | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Increase to retained earnings and a decrease to AOCI for stranded tax effects on investment available for sale securities | $ 186,000 | |
ASU No. 2016-02 | Maximum | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Estimated percentage of increase in assets and liabilities on adoption date | 1.00% |
Investments Securities - Amorti
Investments Securities - Amortized Cost and Fair Values of Investment Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Available-for-Sale and Held-to-Maturity Securities [Line Items] | ||
Available-for-sale, Amortized Cost | $ 38,311 | $ 38,358 |
Available-for-sale, Gross Unrealized Gains | 1 | |
Available-for-sale, Gross Unrealized Losses | (2,562) | (1,432) |
Available-for-sale, Fair Value | 35,749 | 36,927 |
Held-to-maturity, Amortized Cost | 1,290 | 1,409 |
Held-to-maturity, Fair Value | 1,206 | |
Total investment securities, Amortized Cost | 39,601 | 39,767 |
Total investment securities, Gross Unrealized Gains | 1 | |
Total investment securities, Gross Unrealized Losses | (2,646) | (1,467) |
Total investment securities, Fair Value | 36,955 | 38,301 |
U.S. Treasury Securities | ||
Available-for-Sale and Held-to-Maturity Securities [Line Items] | ||
Available-for-sale, Amortized Cost | 34,821 | 34,794 |
Available-for-sale, Gross Unrealized Losses | (2,492) | (1,398) |
Available-for-sale, Fair Value | 32,329 | 33,396 |
U.S. Government Agencies | ||
Available-for-Sale and Held-to-Maturity Securities [Line Items] | ||
Available-for-sale, Amortized Cost | 3,000 | 3,000 |
Available-for-sale, Gross Unrealized Losses | (59) | (30) |
Available-for-sale, Fair Value | 2,941 | 2,970 |
U.S. Agency Collateralized Mortgage Obligations | ||
Available-for-Sale and Held-to-Maturity Securities [Line Items] | ||
Available-for-sale, Amortized Cost | 188 | 224 |
Available-for-sale, Gross Unrealized Losses | (6) | (3) |
Available-for-sale, Fair Value | 182 | 221 |
U.S. Agency Residential Mortgage-Backed Securities | ||
Available-for-Sale and Held-to-Maturity Securities [Line Items] | ||
Available-for-sale, Amortized Cost | 43 | 79 |
Available-for-sale, Gross Unrealized Gains | 1 | |
Available-for-sale, Fair Value | 43 | 80 |
Held-to-maturity, Amortized Cost | 1,290 | 1,409 |
Held-to-maturity, Gross Unrealized Losses | (84) | (35) |
Held-to-maturity, Fair Value | 1,206 | 1,374 |
Municipals | ||
Available-for-Sale and Held-to-Maturity Securities [Line Items] | ||
Available-for-sale, Amortized Cost | 259 | 261 |
Available-for-sale, Gross Unrealized Losses | (5) | (1) |
Available-for-sale, Fair Value | $ 254 | $ 260 |
Investments Securities - Amor_2
Investments Securities - Amortized Cost and Fair Value of Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Available-for-Sale and Held-to-Maturity Securities [Line Items] | ||
Available-for-Sale, Amortized Cost, Amounts maturing in After one year through five years | $ 27,838 | |
Available-for-Sale, Amortized Cost, Amounts maturing in After five years through ten years | 10,242 | |
Available-for-Sale, Amortized Cost. Amounts maturity with single maturity | 38,080 | |
Available-for-sale, Amortized Cost | 38,311 | $ 38,358 |
Available-for-Sale, Fair Value, Amounts maturing in After one year through five years | 26,141 | |
Available-for-Sale, Fair Value, Amounts maturing in After five years through ten years | 9,383 | |
Available-for-Sale, Fair Value, Amounts maturing with single maturity | 35,524 | |
Available-for-Sale, Fair Value | 35,749 | 36,927 |
Held-to-maturity, Amortized Cost | 1,290 | $ 1,409 |
Held-to-Maturity, Fair Value | 1,206 | |
U.S. Agency Residential Mortgage-backed Securities and Collateralized Mortgage Obligations | ||
Available-for-Sale and Held-to-Maturity Securities [Line Items] | ||
Available-for-Sale, Amortized Cost, Amounts maturity without single maturity | 231 | |
Available-for-Sale, Fair Value, Amounts maturing without single maturity | 225 | |
Held-to-Maturity, Amortized Cost, Amounts maturity without single maturity | 1,290 | |
Held-to-Maturity, Fair Value, Amounts maturing without single maturity | $ 1,206 |
Investments Securities - Additi
Investments Securities - Additional Information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018USD ($)Security | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)Security | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($)Security | |
Investments [Abstract] | |||||
Investment securities with carrying value pledged to secure public deposits | $ 19,722,000 | $ 19,722,000 | $ 14,526,000 | ||
Sales of investment securities | $ 0 | $ 0 | $ 0 | $ 0 | |
Number of securities in unrealized loss position | Security | 11 | 11 | 11 | ||
Securities other than temporarily impaired | $ 0 | $ 0 |
Investments Securities - Summar
Investments Securities - Summary of Investment Securities Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale, Fair Value, Less Than 12 Months | $ 254 | $ 5,414 |
Available-for-sale, Gross Unrealized Losses, Less Than 12 Months | (5) | (81) |
Available-for-sale, Fair Value, 12 Months or Greater | 35,452 | 31,433 |
Available-for-sale, Gross Unrealized Losses, 12 Months or Greater | (2,557) | (1,351) |
Available-for-sale, Total Fair Value | 35,706 | 36,847 |
Available-for-sale, Total Gross Unrealized Losses | (2,562) | (1,432) |
Held-to-maturity, Fair Value, Less Than 12 Months | 254 | 5,414 |
Held-to-maturity, Gross Unrealized Losses, Less Than 12 Months | (5) | (81) |
Held-to-maturity, Fair Value, 12 Months or Greater | 36,658 | 32,807 |
Held-to-maturity, Gross Unrealized Losses, Less Than 12 Months | (2,641) | (1,386) |
Held-to-maturity, Total, Fair Value | 36,912 | 38,221 |
Held-to-maturity, Total, Gross Unrealized Losses | (2,646) | (1,467) |
U.S. Treasury Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale, Fair Value, Less Than 12 Months | 4,934 | |
Available-for-sale, Gross Unrealized Losses, Less Than 12 Months | (77) | |
Available-for-sale, Fair Value, 12 Months or Greater | 32,329 | 28,463 |
Available-for-sale, Gross Unrealized Losses, 12 Months or Greater | (2,492) | (1,321) |
Available-for-sale, Total Fair Value | 32,329 | 33,397 |
Available-for-sale, Total Gross Unrealized Losses | (2,492) | (1,398) |
U.S. Government Agencies | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale, Fair Value, 12 Months or Greater | 2,941 | 2,970 |
Available-for-sale, Gross Unrealized Losses, 12 Months or Greater | (59) | (30) |
Available-for-sale, Total Fair Value | 2,941 | 2,970 |
Available-for-sale, Total Gross Unrealized Losses | (59) | (30) |
U.S. Agency Collateralized Mortgage Obligations | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale, Fair Value, Less Than 12 Months | 220 | |
Available-for-sale, Gross Unrealized Losses, Less Than 12 Months | (3) | |
Available-for-sale, Fair Value, 12 Months or Greater | 182 | |
Available-for-sale, Gross Unrealized Losses, 12 Months or Greater | (6) | |
Available-for-sale, Total Fair Value | 182 | 220 |
Available-for-sale, Total Gross Unrealized Losses | (6) | (3) |
Municipals | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale, Fair Value, Less Than 12 Months | 254 | 260 |
Available-for-sale, Gross Unrealized Losses, Less Than 12 Months | (5) | (1) |
Available-for-sale, Total Fair Value | 254 | 260 |
Available-for-sale, Total Gross Unrealized Losses | (5) | (1) |
U.S. Agency Residential Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Held-to-maturity, Fair Value, 12 Months or Greater | 1,206 | 1,374 |
Held-to-maturity, Gross Unrealized Losses, Less Than 12 Months | (84) | (35) |
Held-to-maturity, Total, Fair Value | 1,206 | 1,374 |
Held-to-maturity, Total, Gross Unrealized Losses | $ (84) | $ (35) |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Composition of Loan Portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Loans And Leases Receivable Disclosure [Line Items] | |||
Gross loans receivable | $ 745,136 | $ 657,135 | $ 631,055 |
Net deferred origination fees and premiums | (816) | (347) | |
Loans receivable | 744,320 | 656,788 | |
Commercial and Industrial Loans | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Gross loans receivable | 85,554 | 88,688 | 87,418 |
Construction, Land and Land Development | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Gross loans receivable | 62,222 | 41,641 | 41,098 |
Residential Real Estate | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Gross loans receivable | 91,995 | 87,031 | 66,962 |
Commercial Real Estate | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Gross loans receivable | 502,782 | 437,717 | 433,707 |
Consumer and Other Loans | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Gross loans receivable | $ 2,583 | $ 2,058 | $ 1,870 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Additional Information (Details) | 9 Months Ended | ||
Sep. 30, 2018USD ($)Loan | Sep. 30, 2017Loan | Dec. 31, 2017USD ($) | |
Loans And Leases Receivable Disclosure [Line Items] | |||
Overdrafts included in loans | $ 27,000 | $ 76,000 | |
Pledged loans for borrowing lines at FHLB and FRB | 157,100,000 | 147,008,000 | |
Balance of SBA loans and participations serviced | 28,679,000 | 29,910,000 | |
Purchased loans | 42,662,000 | 43,213,000 | |
Unamortized premiums | 676,000 | 718,000 | |
Purchased participation loans | $ 40,500,000 | $ 8,124,000 | |
Number of loans restructured as troubled debt restructurings | Loan | 0 | 0 | |
Additional funds to borrowers with troubled debt restructurings | $ 0 | ||
Minimum | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Percentage of collateral coverage to loan balance | 100.00% | ||
Loan repayment extended period of time | 6 months | ||
Sustained repayment performance period of loan placed on nonaccrual | 6 months |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Summary of an Age Analysis of Past Due Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | $ 1,472 | $ 2,135 | |
Current | 743,664 | 655,000 | |
Total Loans | 745,136 | 657,135 | $ 631,055 |
Less net deferred origination fees | (816) | (347) | |
Loans receivable | 744,320 | 656,788 | |
30-89 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 695 | 1,418 | |
90 Days or More Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 777 | 717 | |
Commercial and Industrial Loans | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 1,398 | 1,163 | |
Current | 84,156 | 87,525 | |
Total Loans | 85,554 | 88,688 | 87,418 |
Commercial and Industrial Loans | 30-89 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 695 | 791 | |
Commercial and Industrial Loans | 90 Days or More Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 703 | 372 | |
Construction, Land and Land Development | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 218 | ||
Current | 62,222 | 41,423 | |
Total Loans | 62,222 | 41,641 | 41,098 |
Construction, Land and Land Development | 30-89 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 218 | ||
Residential Real Estate | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 74 | 76 | |
Current | 91,921 | 86,955 | |
Total Loans | 91,995 | 87,031 | 66,962 |
Residential Real Estate | 30-89 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 76 | ||
Residential Real Estate | 90 Days or More Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 74 | ||
Commercial Real Estate | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 678 | ||
Current | 502,782 | 437,039 | |
Total Loans | 502,782 | 437,717 | 433,707 |
Commercial Real Estate | 30-89 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 333 | ||
Commercial Real Estate | 90 Days or More Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 345 | ||
Consumer and Other Loans | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Current | 2,583 | 2,058 | |
Total Loans | $ 2,583 | $ 2,058 | $ 1,870 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Summary of Information Pertaining to Impaired Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financing Receivable Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | $ 3,017 | $ 3,466 |
Recorded Investment With No Allowance | 2,054 | 2,814 |
Recorded Investment With Allowance | 467 | |
Total Recorded Investment | 2,521 | 2,814 |
Related Allowance | 117 | |
Commercial and Industrial Loans | ||
Financing Receivable Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | 1,447 | 1,123 |
Recorded Investment With No Allowance | 703 | 1,065 |
Recorded Investment With Allowance | 467 | |
Total Recorded Investment | 1,170 | 1,065 |
Related Allowance | 117 | |
Residential Real Estate | ||
Financing Receivable Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | 75 | 94 |
Recorded Investment With No Allowance | 74 | 89 |
Total Recorded Investment | 74 | 89 |
Commercial Real Estate | ||
Financing Receivable Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | 1,495 | 2,249 |
Recorded Investment With No Allowance | 1,277 | 1,660 |
Total Recorded Investment | $ 1,277 | $ 1,660 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Summary of Our Average Recorded Investment and Interest Income Recognized on Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Financing Receivable Impaired [Line Items] | ||||
Average Recorded Investment | $ 2,353 | $ 219 | $ 2,973 | $ 7,013 |
Interest Income Recognized | 3 | 33 | 44 | |
Commercial and Industrial Loans | ||||
Financing Receivable Impaired [Line Items] | ||||
Average Recorded Investment | 995 | $ 219 | 1,371 | 247 |
Interest Income Recognized | 3 | 28 | ||
Construction, Land and Land Development | ||||
Financing Receivable Impaired [Line Items] | ||||
Average Recorded Investment | 1,281 | |||
Interest Income Recognized | 17 | |||
Residential Real Estate | ||||
Financing Receivable Impaired [Line Items] | ||||
Average Recorded Investment | 74 | 306 | 97 | |
Interest Income Recognized | 5 | |||
Commercial Real Estate | ||||
Financing Receivable Impaired [Line Items] | ||||
Average Recorded Investment | $ 1,284 | $ 1,296 | 5,388 | |
Interest Income Recognized | $ 27 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Summary of Troubled Debt Restructurings by Accrual Versus Nonaccrual Status and by Loan Class (Details) - Commercial Real Estate - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financing Receivable Modifications [Line Items] | ||
Total Restructured Loans | $ 1,277 | $ 1,315 |
Nonaccrual Status | ||
Financing Receivable Modifications [Line Items] | ||
Total Restructured Loans | $ 1,277 | $ 1,315 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Analysis of Nonaccrual Loans by Category (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total nonaccrual loans | $ 2,521 | $ 2,120 |
Commercial and Industrial Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total nonaccrual loans | 1,170 | 372 |
Residential Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total nonaccrual loans | 74 | 88 |
Commercial Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total nonaccrual loans | $ 1,277 | $ 1,660 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Summary of Loans by Credit Quality Risk Rating (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | $ 745,136 | $ 657,135 | $ 631,055 |
Less net deferred origination fees | (816) | (347) | |
Loans receivable | 744,320 | 656,788 | |
Commercial and Industrial Loans | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 85,554 | 88,688 | 87,418 |
Construction, Land and Land Development | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 62,222 | 41,641 | 41,098 |
Residential Real Estate | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 91,995 | 87,031 | 66,962 |
Commercial Real Estate | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 502,782 | 437,717 | 433,707 |
Consumer and Other Loans | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 2,583 | 2,058 | $ 1,870 |
Pass | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 735,060 | 649,271 | |
Pass | Commercial and Industrial Loans | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 81,751 | 87,247 | |
Pass | Construction, Land and Land Development | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 59,707 | 39,081 | |
Pass | Residential Real Estate | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 91,796 | 86,464 | |
Pass | Commercial Real Estate | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 499,223 | 434,421 | |
Pass | Consumer and Other Loans | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 2,583 | 2,058 | |
Other Loans Especially Mentioned | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 7,170 | 5,051 | |
Other Loans Especially Mentioned | Commercial and Industrial Loans | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 2,248 | 376 | |
Other Loans Especially Mentioned | Construction, Land and Land Development | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 2,515 | 2,560 | |
Other Loans Especially Mentioned | Residential Real Estate | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 125 | 479 | |
Other Loans Especially Mentioned | Commercial Real Estate | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 2,282 | 1,636 | |
Sub-Standard | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 2,906 | 2,305 | |
Sub-Standard | Commercial and Industrial Loans | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 1,555 | 902 | |
Sub-Standard | Residential Real Estate | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 74 | 88 | |
Sub-Standard | Commercial Real Estate | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | $ 1,277 | 1,315 | |
Doubtful | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 508 | ||
Doubtful | Commercial and Industrial Loans | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | 163 | ||
Doubtful | Commercial Real Estate | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans, gross | $ 345 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses - Summary of Allocation of Allowance for Loan Loss as well as Activity in Allowance for Loan Loss Attributed to Various Segments in Loan (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Loans And Leases Receivable Disclosure [Line Items] | |||||
ALLL Balance | $ 8,540 | $ 7,889 | $ 8,017 | $ 7,544 | |
Provision for loan losses or (recapture) | 508 | 65 | 1,401 | 504 | |
Loans receivable allowance including provision losses or (recapture) | 9,048 | 7,954 | 9,418 | 8,048 | |
Loans charged-off | (6) | (9) | (385) | (200) | |
Recoveries of loans previously charged-off | 69 | 2 | 78 | 99 | |
Net (charge-offs) recoveries | 63 | (7) | (307) | (101) | |
ALLL Balance | 9,111 | 7,947 | 9,111 | 7,947 | |
Allowances | |||||
Amounts allocated to Individually evaluated for impairment | 117 | 60 | 117 | 60 | |
Amounts allocated to Collectively evaluated for impairment | 8,994 | 7,887 | 8,994 | 7,887 | $ 8,017 |
ALLL Balance | 9,111 | 7,947 | 9,111 | 7,947 | |
Loans | |||||
Loans individually evaluated for impairment | 2,521 | 217 | 2,521 | 217 | 2,814 |
Loans collectively evaluated for impairment | 742,615 | 630,838 | 742,615 | 630,838 | 654,321 |
Total Loans | 745,136 | 631,055 | 745,136 | 631,055 | 657,135 |
Commercial and Industrial Loans | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
ALLL Balance | 1,821 | 1,881 | 1,864 | 1,606 | |
Provision for loan losses or (recapture) | (10) | 26 | 226 | 314 | |
Loans receivable allowance including provision losses or (recapture) | 1,811 | 1,907 | 2,090 | 1,920 | |
Loans charged-off | (6) | (281) | (20) | ||
Recoveries of loans previously charged-off | 1 | 1 | 3 | 2 | |
Net (charge-offs) recoveries | 1 | (5) | (278) | (18) | |
ALLL Balance | 1,812 | 1,902 | 1,812 | 1,902 | |
Allowances | |||||
Amounts allocated to Individually evaluated for impairment | 117 | 60 | 117 | 60 | |
Amounts allocated to Collectively evaluated for impairment | 1,695 | 1,842 | 1,695 | 1,842 | 1,864 |
ALLL Balance | 1,812 | 1,902 | 1,812 | 1,902 | |
Loans | |||||
Loans individually evaluated for impairment | 1,170 | 217 | 1,170 | 217 | 1,065 |
Loans collectively evaluated for impairment | 84,384 | 87,201 | 84,384 | 87,201 | 87,623 |
Total Loans | 85,554 | 87,418 | 85,554 | 87,418 | 88,688 |
Construction, Land and Land Development | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
ALLL Balance | 1,238 | 1,167 | 1,063 | 1,398 | |
Provision for loan losses or (recapture) | 423 | (114) | 598 | (440) | |
Loans receivable allowance including provision losses or (recapture) | 1,661 | 1,053 | 1,661 | 958 | |
Recoveries of loans previously charged-off | 95 | ||||
Net (charge-offs) recoveries | 95 | ||||
ALLL Balance | 1,661 | 1,053 | 1,661 | 1,053 | |
Allowances | |||||
Amounts allocated to Collectively evaluated for impairment | 1,661 | 1,053 | 1,661 | 1,053 | 1,063 |
ALLL Balance | 1,661 | 1,053 | 1,661 | 1,053 | |
Loans | |||||
Loans collectively evaluated for impairment | 62,222 | 41,098 | 62,222 | 41,098 | 41,641 |
Total Loans | 62,222 | 41,098 | 62,222 | 41,098 | 41,641 |
Residential Real Estate | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
ALLL Balance | 1,395 | 1,181 | 1,343 | 1,495 | |
Provision for loan losses or (recapture) | 7 | (62) | 59 | (376) | |
Loans receivable allowance including provision losses or (recapture) | 1,402 | 1,119 | 1,402 | 1,119 | |
Recoveries of loans previously charged-off | 65 | 65 | |||
Net (charge-offs) recoveries | 65 | 65 | |||
ALLL Balance | 1,467 | 1,119 | 1,467 | 1,119 | |
Allowances | |||||
Amounts allocated to Collectively evaluated for impairment | 1,467 | 1,119 | 1,467 | 1,119 | 1,343 |
ALLL Balance | 1,467 | 1,119 | 1,467 | 1,119 | |
Loans | |||||
Loans individually evaluated for impairment | 74 | 74 | 89 | ||
Loans collectively evaluated for impairment | 91,921 | 66,962 | 91,921 | 66,962 | 86,942 |
Total Loans | 91,995 | 66,962 | 91,995 | 66,962 | 87,031 |
Commercial Real Estate | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
ALLL Balance | 2,303 | 1,968 | 2,014 | 1,474 | |
Provision for loan losses or (recapture) | 164 | 42 | 537 | 709 | |
Loans receivable allowance including provision losses or (recapture) | 2,467 | 2,010 | 2,551 | 2,183 | |
Loans charged-off | (84) | (173) | |||
Net (charge-offs) recoveries | (84) | (173) | |||
ALLL Balance | 2,467 | 2,010 | 2,467 | 2,010 | |
Allowances | |||||
Amounts allocated to Collectively evaluated for impairment | 2,467 | 2,010 | 2,467 | 2,010 | 2,014 |
ALLL Balance | 2,467 | 2,010 | 2,467 | 2,010 | |
Loans | |||||
Loans individually evaluated for impairment | 1,277 | 1,277 | 1,660 | ||
Loans collectively evaluated for impairment | 501,505 | 433,707 | 501,505 | 433,707 | 436,057 |
Total Loans | 502,782 | 433,707 | 502,782 | 433,707 | 437,717 |
Consumer and Other Loans | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
ALLL Balance | 52 | 37 | 43 | 26 | |
Provision for loan losses or (recapture) | 39 | 3 | 55 | 17 | |
Loans receivable allowance including provision losses or (recapture) | 91 | 40 | 98 | 43 | |
Loans charged-off | (6) | (3) | (20) | (7) | |
Recoveries of loans previously charged-off | 3 | 1 | 10 | 2 | |
Net (charge-offs) recoveries | (3) | (2) | (10) | (5) | |
ALLL Balance | 88 | 38 | 88 | 38 | |
Allowances | |||||
Amounts allocated to Collectively evaluated for impairment | 88 | 38 | 88 | 38 | 43 |
ALLL Balance | 88 | 38 | 88 | 38 | |
Loans | |||||
Loans collectively evaluated for impairment | 2,583 | 1,870 | 2,583 | 1,870 | 2,058 |
Total Loans | 2,583 | 1,870 | 2,583 | 1,870 | 2,058 |
Unallocated | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
ALLL Balance | 1,731 | 1,655 | 1,690 | 1,545 | |
Provision for loan losses or (recapture) | (115) | 170 | (74) | 280 | |
Loans receivable allowance including provision losses or (recapture) | 1,616 | 1,825 | 1,616 | 1,825 | |
ALLL Balance | 1,616 | 1,825 | 1,616 | 1,825 | |
Allowances | |||||
Amounts allocated to Collectively evaluated for impairment | 1,616 | 1,825 | 1,616 | 1,825 | $ 1,690 |
ALLL Balance | $ 1,616 | $ 1,825 | $ 1,616 | $ 1,825 |
Deposits - Composition of Conso
Deposits - Composition of Consolidated Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Time Deposits By Maturity [Abstract] | ||
Demand, noninterest bearing | $ 285,979 | $ 242,358 |
Now and money market | 340,930 | 326,412 |
Savings | 49,430 | 43,876 |
Time deposits less than $250,000 | 63,715 | 60,445 |
Time deposits $250,000 and over | 34,668 | 30,204 |
Total deposits | $ 774,722 | $ 703,295 |
Deposits - Schedule of Maturity
Deposits - Schedule of Maturity Distribution of Time Deposits (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Deposits [Abstract] | |
Twelve months | $ 57,755 |
One to two years | 28,412 |
Two to three years | 8,652 |
Three to four years | 1,560 |
Four to five years | 2,004 |
Total time deposits | $ 98,383 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) | Apr. 30, 2018shares | Jan. 31, 2018Director$ / sharesshares | Sep. 30, 2018USD ($)$ / sharesshares | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)$ / sharesshares | Sep. 30, 2017USD ($) | Dec. 31, 2017Director$ / sharesshares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock options granted to employees | 116,046 | ||||||
Total intrinsic value of options exercise price | $ | $ 106,000 | $ 173,000 | |||||
Total unrecognized compensation cost related to nonvested stock options granted | $ | $ 1,621,000 | $ 1,621,000 | |||||
Unrecognized compensation cost related to nonvested stock options granted, weighted-average period | 7 years | ||||||
Compensation expense | $ | $ 231,000 | $ 213,000 | |||||
Restricted Stock Awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of nonvested shares | 1,200 | 1,200 | 1,400 | ||||
Weighted average grant date fair value | $ / shares | $ 6.25 | $ 6.25 | $ 6.25 | ||||
2018 Omnibus Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock, additional shares authorized | 0 | ||||||
Shares available to be granted | 500,000 | 500,000 | |||||
2018 Omnibus Incentive Plan | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Aggregate of common stock, shares authorized | 500,000 | ||||||
2006 Plan | Nonqualified Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock options granted to employees | 28,546 | ||||||
Stock options vesting period | 10 years | ||||||
2006 Plan | Qualified Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock options granted to employees | 87,500 | ||||||
Stock options vesting period | 10 years | ||||||
Director's Stock Bonus Plan | Restricted Stock Awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock options vesting period | 2 years | ||||||
Attainment of retirement age of directors | 72 years | ||||||
Amended bonus plan expiration date | May 31, 2018 | ||||||
Compensation expense | $ | $ 8,000 | $ 8,000 | $ 23,000 | $ 23,000 | |||
Director's Stock Bonus Plan | Restricted Stock Awards | Director | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Market value of shares grants per year | $ | 5,000 | ||||||
Number of shares granted | 4,405 | 4,808 | |||||
Number of directors | Director | 5 | 5 | |||||
Estimated fair value per share | $ / shares | $ 7.10 | $ 6.50 | |||||
Director's Stock Bonus Plan | Restricted Stock Awards | Board Chairman | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Market value of shares grants per year | $ | 7,500 | ||||||
Director's Stock Bonus Plan | Restricted Stock Awards | Committee Chairmen | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Market value of shares grants per year | $ | $ 6,250 | ||||||
Director's Stock Bonus Plan | Maximum | Restricted Stock Awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares available to be granted | 50,000 | 50,000 | |||||
Director's Stock Bonus Plan | Minimum | Restricted Stock Awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of scheduled board meetings attended by directors during prior year | 75.00% | 75.00% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Assumptions used to Estimate the Value of Options Granted (Details) - 2018 Omnibus Incentive Plan - $ / shares | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 10 years | 10 years |
Expected stock price volatility | 41.89% | 43.41% |
Risk-free interest rate | 2.66% | 2.51% |
Expected dividends | 0.00% | 0.00% |
Weighted average grant date fair value | $ 3.95 | $ 3.70 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock Option Activity (Details) - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Outstanding, Shares, Beginning balance | 668,934 | |
Granted, Shares | 116,046 | |
Exercised, Shares | (55,670) | |
Forfeited or expired, Shares | (47,120) | |
Outstanding, Shares, Ending balance | 682,190 | 668,934 |
Exercisable, Shares | 207,035 | |
Outstanding, Weighted Average Exercise Price, Beginning balance | $ 6.12 | |
Granted, Weighted Average Exercise Price | 7.10 | |
Exercised, Weighted Average Exercise Price | 6.09 | |
Forfeited or expired, Weighted Average Exercise price | 6.54 | |
Outstanding, Weighted Average Exercise Price, Ending balance | 6.26 | $ 6.12 |
Exercisable, Weighted Average Exercise Price | $ 5.97 | |
Outstanding, Weighted Average Remaining Contractual Term | 6 years 6 months 29 days | 6 years 4 months 9 days |
Exercisable, Weighted Average Remaining Contractual Term | 5 years 2 months 8 days |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) | Sep. 26, 2018shares | May 04, 2018shares | Sep. 30, 2018shares | Dec. 31, 2017shares | Dec. 31, 2016shares |
Class Of Stock [Line Items] | |||||
Reverse stock split, description | 1-for-5 reverse stock split | ||||
Reverse stock split, conversion ratio | 0.2 | ||||
Number of issued shares before reverse stock split | 46,268,359 | ||||
Number of issued shares after reverse stock split | 9,254,073 | ||||
Number of additional shares issued to shareholders with fractional shares | 401 | ||||
Preferred stock, shares authorized | 25,000,000 | 25,000,000 | 500,000 | ||
Preferred stock, shares issued | 0 | 0 | |||
Preferred stock, shares outstanding | 0 | 0 | |||
Common stock, shares authorized | 300,000,000 | 300,000,000 | 100,000,000 | ||
Increase in authorized number of shares of common stock | 200,000,000 | ||||
Common stock, shares, issued | 11,886,473 | 8,887,457 | |||
Common stock, shares, outstanding | 11,886,473 | 8,887,457 | |||
Class B Nonvoting Common Stock Exchanged for Voting Common Stock | |||||
Class Of Stock [Line Items] | |||||
Shares converted to common stock | 100,000 | ||||
Class C Nonvoting Common Stock Exchanged for Voting Common Stock | |||||
Class Of Stock [Line Items] | |||||
Shares converted to common stock | 261,444 | ||||
Class B Nonvoting Common Stock | |||||
Class Of Stock [Line Items] | |||||
Common stock, shares authorized | 1,000,000 | ||||
Common stock, shares, issued | 100,000 | ||||
Common stock, shares, outstanding | 100,000 | ||||
Class C Nonvoting Common Stock | |||||
Class Of Stock [Line Items] | |||||
Common stock, shares authorized | 100,000,000 | ||||
Common stock, shares, issued | 261,444 | ||||
Common stock, shares, outstanding | 261,444 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financial assets | ||
Other investments | $ 3,766 | $ 3,680 |
Financial liabilities | ||
FHLB advances | 20,000 | 20,000 |
Carrying Value | ||
Financial assets | ||
Cash and due from banks | 16,837 | 13,787 |
Interest earning deposits with other banks | 98,671 | 75,964 |
Investment securities | 37,039 | 38,336 |
Other investments | 3,766 | 3,680 |
Loans receivable, net | 735,209 | 648,771 |
Accrued interest receivable | 2,299 | 2,274 |
Financial liabilities | ||
Deposits | 774,722 | 703,295 |
FHLB advances | 20,000 | 20,000 |
Subordinated debt | 9,961 | 9,950 |
Junior subordinated debentures | 3,581 | 3,579 |
Capital lease | 88 | 137 |
Accrued interest payable | 257 | 228 |
Estimated Fair Value | ||
Financial assets | ||
Cash and due from banks | 16,837 | 13,787 |
Interest earning deposits with other banks | 98,671 | 75,891 |
Investment securities | 36,955 | 38,301 |
Other investments | 3,766 | 3,680 |
Loans receivable, net | 711,772 | 636,334 |
Accrued interest receivable | 2,299 | |
Financial liabilities | ||
Deposits | 773,497 | 702,525 |
FHLB advances | 20,000 | 20,000 |
Subordinated debt | 9,570 | 9,601 |
Junior subordinated debentures | 3,112 | 2,978 |
Capital lease | 86 | 134 |
Accrued interest payable | 257 | |
Estimated Fair Value | Level 1 | ||
Financial assets | ||
Cash and due from banks | 16,837 | 13,787 |
Interest earning deposits with other banks | 98,671 | 75,891 |
Investment securities | 32,329 | 33,396 |
Estimated Fair Value | Level 2 | ||
Financial assets | ||
Investment securities | 4,626 | 4,905 |
Other investments | 3,766 | 3,680 |
Accrued interest receivable | 2,299 | 2,274 |
Financial liabilities | ||
Deposits | 773,497 | 702,525 |
FHLB advances | 20,000 | 20,000 |
Subordinated debt | 9,570 | 9,601 |
Junior subordinated debentures | 3,112 | 2,978 |
Capital lease | 86 | 134 |
Accrued interest payable | 257 | 228 |
Estimated Fair Value | Level 3 | ||
Financial assets | ||
Loans receivable, net | $ 711,772 | $ 636,334 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | $ 35,749 | $ 36,927 |
Estimated Fair Value | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 35,749 | 36,927 |
Estimated Fair Value | Recurring | U.S. Treasury Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 32,329 | 33,396 |
Estimated Fair Value | Recurring | U.S. Government Agencies | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 2,941 | 2,970 |
Estimated Fair Value | Recurring | U.S. Agency Collateralized Mortgage Obligations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 182 | 260 |
Estimated Fair Value | Recurring | U.S. Agency Residential Mortgage-Backed Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 43 | 81 |
Estimated Fair Value | Recurring | Municipals | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 254 | 220 |
Estimated Fair Value | Recurring | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 32,329 | 33,396 |
Estimated Fair Value | Recurring | Level 1 | U.S. Treasury Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 32,329 | 33,396 |
Estimated Fair Value | Recurring | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 3,420 | 3,531 |
Estimated Fair Value | Recurring | Level 2 | U.S. Government Agencies | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 2,941 | 2,970 |
Estimated Fair Value | Recurring | Level 2 | U.S. Agency Collateralized Mortgage Obligations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 182 | 260 |
Estimated Fair Value | Recurring | Level 2 | U.S. Agency Residential Mortgage-Backed Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 43 | 81 |
Estimated Fair Value | Recurring | Level 2 | Municipals | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | $ 254 | $ 220 |
Fair Value Measurements - Sum_3
Fair Value Measurements - Summary of Assets and Liabilities Classified as Level 3 and Measured at Fair Value on Nonrecurring Basis (Details) - Level 3 | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Valuation Technique | Collateral valuations | |
Unobservable Inputs | Discount to appraised value | |
Measurement Input, Discount Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Weighted Average Rate | 9.00% | 13.00% |
Fair Value Measurements - Sum_4
Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Details) - Nonrecurring - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | $ 493 | $ 508 |
Impaired Loans | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 493 | 508 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | 493 | 508 |
Level 3 | Impaired Loans | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total Fair Value | $ 493 | $ 508 |
Earnings Per Common Share - Sch
Earnings Per Common Share - Schedule of Computation of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Net Income | $ 2,602 | $ 1,904 | $ 6,646 | $ 5,093 |
Basic weighted average number common shares outstanding | 11,338,320 | 9,235,344 | 9,956,449 | 9,233,421 |
Dilutive effect of share-based compensation | 271,658 | 3,464 | 94,966 | 2,754 |
Diluted weighted average number common shares outstanding | 11,609,978 | 9,238,808 | 10,051,415 | 9,236,175 |
Basic earnings per share | $ 0.23 | $ 0.21 | $ 0.67 | $ 0.55 |
Diluted earnings per share | $ 0.22 | $ 0.21 | $ 0.66 | $ 0.55 |
Earnings Per Common Share - Add
Earnings Per Common Share - Additional Information (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share, amount | 0 | 599,026 | 261,051 | 649,396 |