Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 31, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | FIRST COMMUNITY FINANCIAL PARTNERS, INC. | |
Entity Central Index Key | 1,469,134 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 17,237,845 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Entity Current Reporting Status | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and due from banks | $ 21,622 | $ 10,699 |
Federal funds sold | 550 | 0 |
Interest-bearing deposits in banks | 33,349 | 7,406 |
Securities available for sale | 188,062 | 205,604 |
Non-marketable equity securities | 3,959 | 1,367 |
Mortgage loans held for sale | 1,331 | 400 |
Loans and leases, net of allowance for loan losses of $12,284 in 2016; $11,741 in 2015 | 944,671 | 760,578 |
Premises and equipment, net | 22,454 | 18,529 |
Foreclosed assets | 725 | 5,487 |
Cash surrender value of life insurance | 19,324 | 16,561 |
Deferred tax asset, net | 3,653 | 9,191 |
Accrued interest receivable and other assets | 6,898 | 4,830 |
Total assets | 1,246,598 | 1,040,652 |
Deposits | ||
Noninterest bearing | 246,262 | 196,063 |
Interest bearing | 818,989 | 669,928 |
Total deposits | 1,065,251 | 865,991 |
Other borrowed funds | 46,579 | 53,015 |
Subordinated debt | 15,300 | 15,300 |
Accrued interest payable and other liabilities | 4,304 | 3,305 |
Total liabilities | 1,131,434 | 937,611 |
Concentrations, Commitments and Contingencies (Note 10) | ||
First Community Financial Partners, Inc. Shareholders’ Equity | ||
Common stock, $1.00 par value; 60,000,000 shares authorized; 17,237,845 issued and outstanding at September 30, 2016 and 17,026,941 issued and outstanding at December 31, 2015 | 17,238 | 17,027 |
Additional paid-in capital | 83,365 | 82,211 |
Retained earnings | 11,227 | 2,800 |
Accumulated other comprehensive income | 3,334 | 1,003 |
Total shareholders' equity | 115,164 | 103,041 |
Total liabilities and shareholders' equity | $ 1,246,598 | $ 1,040,652 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for loan losses | $ 12,284 | $ 11,741 |
Common stock, par or stated value per share (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 60,000,000 | 60,000,000 |
Common stock, shares, issued (in shares) | 17,237,845 | 17,026,941 |
Common stock, shares, outstanding (in shares) | 17,237,845 | 17,026,941 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Interest income: | ||||
Loans, including fees | $ 10,229 | $ 8,218 | $ 27,761 | $ 24,124 |
Securities | 1,041 | 1,103 | 3,184 | 3,017 |
Federal funds sold and other | 43 | 19 | 83 | 47 |
Total interest income | 11,313 | 9,340 | 31,028 | 27,188 |
Interest expense: | ||||
Deposits | 1,081 | 973 | 2,978 | 2,937 |
Federal funds purchased and other borrowed funds | 112 | 98 | 324 | 129 |
Subordinated debentures | 297 | 297 | 891 | 1,503 |
Total interest expense | 1,490 | 1,368 | 4,193 | 4,569 |
Net interest income | 9,823 | 7,972 | 26,835 | 22,619 |
Provision for loan losses | 383 | (813) | 883 | (1,562) |
Net interest income after provision for loan losses | 9,440 | 8,785 | 25,952 | 24,181 |
Noninterest income: | ||||
Service charges on deposit accounts | 289 | 188 | 700 | 565 |
Gain on sale of securities | 14 | 251 | 617 | 272 |
Mortgage fee income | 169 | 178 | 363 | 435 |
Bargain purchase gain | 1,920 | 0 | 1,920 | 0 |
Other | 381 | 152 | 969 | 465 |
Noninterest income | 2,773 | 769 | 4,569 | 1,737 |
Noninterest expenses: | ||||
Salaries and employee benefits | 3,812 | 2,841 | 10,379 | 8,535 |
Occupancy and equipment expense | 568 | 486 | 1,434 | 1,483 |
Data processing | 700 | 248 | 1,647 | 710 |
Professional fees | 369 | 342 | 1,136 | 1,134 |
Advertising and business development | 328 | 217 | 805 | 633 |
Losses on sale and writedowns of foreclosed assets, net | 1 | 58 | 14 | 78 |
Foreclosed assets expenses, net of rental income | (99) | (61) | 50 | 80 |
Other expense | 1,380 | 1,005 | 3,663 | 2,840 |
Noninterest expense | 7,059 | 5,136 | 19,128 | 15,493 |
Income before income taxes | 5,154 | 4,418 | 11,393 | 10,425 |
Income taxes | 1,019 | 1,471 | 2,966 | 3,527 |
Net income | $ 4,135 | $ 2,947 | $ 8,427 | $ 6,898 |
Common share data | ||||
Basic earnings per common share (in dollars per share) | $ 0.24 | $ 0.17 | $ 0.49 | $ 0.41 |
Diluted earnings per common share (in dollars per share) | $ 0.24 | $ 0.17 | $ 0.48 | $ 0.40 |
Weighted average common shares outstanding for basic earnings per common share (in shares) | 17,189,113 | 16,993,822 | 17,165,808 | 16,910,441 |
Weighted average common shares outstanding for diluted earnings per common share (in shares) | 17,565,667 | 17,161,783 | 17,492,403 | 17,048,967 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 4,135 | $ 2,947 | $ 8,427 | $ 6,898 |
Unrealized holding gains (losses) on investment securities | (1,208) | 1,297 | 4,438 | 976 |
Reclassification adjustments for gains included in net income | (14) | (251) | (617) | (272) |
Tax effect of realized and unrealized gains and losses on investment securities | 477 | (408) | (1,490) | (274) |
Other comprehensive income (loss), net of tax | (745) | 638 | 2,331 | 430 |
Comprehensive income | $ 3,390 | $ 3,585 | $ 10,758 | $ 7,328 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income |
Balance, beginning of period at Dec. 31, 2014 | $ 92,053 | $ 16,668 | $ 81,648 | $ (7,019) | $ 756 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 6,898 | 6,898 | |||
Other comprehensive loss, net of tax | 430 | 430 | |||
Issuance of shares of common stock for restricted stock awards and amortization | 2 | 306 | (304) | ||
Issuance of shares of common stock for exercise of warrants | 198 | 43 | 155 | ||
Reclass of warrants upon redemption of preferred stock | (225) | 0 | (225) | ||
Stock based compensation expense | 763 | 763 | |||
Balance, end of period at Sep. 30, 2015 | 100,119 | 17,017 | 82,037 | (121) | 1,186 |
Balance, beginning of period at Dec. 31, 2015 | 103,041 | 17,027 | 82,211 | 2,800 | 1,003 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 8,427 | 8,427 | |||
Other comprehensive loss, net of tax | 2,331 | 2,331 | |||
Issuance of shares of common stock for restricted stock awards and amortization | (38) | 140 | (178) | ||
Issuance of shares of common stock for exercise of warrants | 115 | 27 | 88 | ||
Issuance of 43,720 shares of common stock for exercise of stock options | 310 | 44 | 266 | ||
Tax windfall benefit | 78 | 78 | |||
Stock based compensation expense | 900 | 900 | |||
Balance, end of period at Sep. 30, 2016 | $ 115,164 | $ 17,238 | $ 83,365 | $ 11,227 | $ 3,334 |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - shares | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||
Issuance of shares of common stock for restricted stock (in shares) | 139,684 | 306,189 |
Issuance of shares of common stock for exercise of warrants (in shares) | 27,500 | 43,250 |
Issuance of shares of common stock for exercises of options (in shares) | 43,720 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest [Abstract] | ||
Net income | $ 8,427 | $ 6,898 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net amortization of securities | 1,549 | 1,383 |
Provision for loan losses | 883 | (1,562) |
Bargain purchase gain | (1,920) | 0 |
Gain on sale of foreclosed assets | 0 | (13) |
Losses on sales of foreclosed assets | 50 | 92 |
Net accretion of deferred loan fees | 149 | 58 |
Warrant accretion | 0 | 6 |
Depreciation and amortization of premises and equipment | 864 | 954 |
Realized gains on sales of available for sale securities, net | (617) | (272) |
Increase in cash surrender value of life insurance | (446) | (96) |
Amortization of core deposit intangible | 51 | 0 |
Deferred income taxes | 2,776 | 3,419 |
(Increase) decrease in mortgage loans held for sale | (931) | 738 |
(Decrease) in accrued interest receivable and other assets | (707) | (1,210) |
(Decrease) increase in accrued interest payable and other liabilities | 631 | 311 |
Restricted stock compensation expense | 607 | 716 |
Stock option compensation expense | 293 | 47 |
Net cash provided by operating activities | 11,659 | 11,469 |
Cash Flows From Investing Activities | ||
Acquisition payment, net of cash acquired | (2,746) | 0 |
Net change in interest bearing deposits in banks | (25,943) | (1,657) |
Activity in available for sale securities: | ||
Purchases | 0 | (81,392) |
Maturities, prepayments and calls | 59,608 | 12,611 |
Sales | 0 | 21,234 |
Purchases of non-marketable equity securities | (2,458) | 0 |
Net increase in loans | (153,106) | (56,315) |
Purchases of premises and equipment | (596) | (265) |
Proceeds from sale of foreclosed assets | 4,721 | 147 |
Net cash used in investing activities | (120,520) | (105,637) |
Cash Flows From Financing Activities | ||
Net increase in deposits | 126,220 | 77,287 |
Cash paid on redemption of subordinated debt | 0 | (14,060) |
Net increase (decrease) in other borrowings | (6,436) | 27,722 |
Net cash provided by financing activities | 119,784 | 90,949 |
Net change in cash and due from banks | 10,923 | (3,219) |
Cash and due from banks, beginning of period | 10,699 | 13,329 |
Cash and due from banks, end of period | $ 21,622 | $ 10,110 |
Consolidated Statements of Cas9
Consolidated Statements of Cash Flows (Supplemental Information) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Supplemental Disclosures of Cash Flow Information | ||
Cash payments for interest | $ 4,345 | $ 5,209 |
Supplemental Schedule of Noncash Investing and Financing Activities | ||
Transfer of loans to foreclosed assets | $ 0 | $ 1,805 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These are the unaudited consolidated financial statements of First Community Financial Partners, Inc. (“we,” “us,” “our,” the “Company” or “First Community”) and its subsidiaries, including its wholly owned bank subsidiary, First Community Financial Bank (the “Bank”). In the opinion of management, all normal recurring adjustments necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods have been made. The results of operations for the three and nine months ended September 30, 2016 are not necessarily indicative of the results to be expected for the entire fiscal year or for any other period. These unaudited interim financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) and industry practice. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Form 10-K for the year ended December 31, 2015 . The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions which affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, as well as the reported amounts of income and expenses during the reported periods. Actual results could differ from those estimates. Certain prior period amounts have been reclassified to conform to current period presentation. These reclassifications did not result in any changes to previously reported net income or shareholders’ equity. Significant Accounting Policies In addition to the assumptions and methodologies that the Company used to apply significant accounting policies and develop significant estimates as disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, the following policies have been added: Business Combinations and Valuations of Loans Acquired in Business Combinations: We account for acquisitions under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805, Business Combinations , which requires the use of the acquisition method of accounting. Assets acquired and liabilities assumed in a business combination are recorded at estimated fair value on their purchase date. As provided for under GAAP, management has up to 12 months following the date of acquisition to finalize the fair values of acquired assets and assumed liabilities, where it was not possible to estimate the acquisition date fair value upon consummation. In particular, the valuation of acquired loans involves significant estimates, assumptions and judgments based on information available as of the acquisition date. Substantially all loans acquired in the transaction are evaluated either individually or in pools of loans with similar characteristics; since the estimated fair value of acquired loans includes a credit consideration, no carryover of any previously recorded allowance for loan losses is recorded at acquisition. A number of factors are considered in determining the estimated fair value of purchased loans including, among other things, the remaining life of the acquired loans, estimated prepayments, estimated loss ratios, estimated value of the underlying collateral, estimated holding periods, contractual interest rates compared to market interest rates, and net present value of cash flows expected to be received. In determining the fair value of acquired loans, management calculates a nonaccretable difference (the credit mark component of the acquired loans) and an accretable difference (the market rate or yield component of the acquired loans). The nonaccretable difference is the difference between the undiscounted contractually required payments and the undiscounted cash flows expected to be collected in accordance with management’s determination of the fair value. The accretable yield on acquired loans is the difference between the expected cash flows and the initial investment in the acquired loans. The accretable yield is recognized into earnings using the effective yield method over the term of the loans. Management separately monitors the acquired loan portfolio and periodically reviews loans contained within this portfolio against the factors and assumptions used in determining the fair value. Core Deposit Intangible: Core deposit base premiums represent the value of the acquired customer core deposit bases and are included in as an asset on the consolidated balance sheets. The core deposit intangible has an estimated finite life, is amortized on a straight line basis over a 84 -month period, and is subject to periodic impairment evaluation. Management will periodically review the carrying value of its long-lived and intangible assets to determine if any impairment has occurred or whether changes in circumstances have occurred that would require a revision to the remaining useful life, in which case an impairment charge would be recorded as an expense in the period of impairment. In making such determination, management evaluates whether there are any adverse qualitative factors indicating that an impairment may exist, as well as the performance, on an undiscounted basis, of the underlying operations or assets which give rise to the intangible. Given that the acquisition of Mazon State Bank took place during the third quarter of 2016, there was no impairment charge to the core deposit intangible at September 30, 2016 . The net book value of core deposit intangible was $767,000 and $0 at September 30, 2016 and December 31, 2015 , respectively and is included in other assets on the consolidated balance sheets. Emerging Growth Company Critical Accounting Policy Disclosure The Company qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act (the “JOBS Act”). Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933 for complying with new or revised accounting standards. As an emerging growth company, the Company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company elected to take advantage of the benefits of this extended transition period. Management anticipates that the Company will no longer be considered an emerging growth company, and thus will no longer be eligible to use this extended transition period, after the fiscal year ending December 31, 2018. Certain information in footnote disclosure normally included financial statements prepared in accordance with U.S. GAAP and industry practice has been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission (“SEC”). New Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) . The ASU requires a lessee to recognize on the balance sheet assets and liabilities for leases with lease terms of more than 12 months. Consistent with current U.S. GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. Unlike U.S. GAAP, which requires that only capital leases be recognized on the balance sheet, the ASU requires that both types of leases by recognized on the balance sheet. For public companies, this update will be effective for interim and annual periods beginning after December 15, 2018. Early application is permitted. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update No. 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . Among other items, the ASU, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. For public companies, this update will be effective for interim and annual periods beginning after December 15, 2017. The effect of the adoption of this guidance is being evaluated by the Company. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The ASU requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forwardlooking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. Additionally, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. For the Company, this update will be effective for interim and annual periods beginning after December 15, 2019. The Company has not yet determined the impact the adoption of ASU 2016-13 will have on the consolidated financial statements. |
Acquisition
Acquisition | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition On July 1, 2016, the Company completed its acquisition of Mazon State Bank, an Illinois state-chartered commercial bank, pursuant to that certain Agreement and Plan of Merger dated March 14, 2016 (the “Merger Agreement”) by and among the Company, the Bank, Mazon State Bank and First Mazon Bancorp, Inc., a Delaware corporation and the former parent company of Mazon State Bank. Under the terms of the Merger Agreement, the Company acquired Mazon State Bank, through the merger of Mazon State Bank with and into the Bank, for aggregate consideration of $8.5 million in cash. The three branches of Mazon State Bank opened on July 1, 2016 as branches of the Bank. The system integration was completed during the third quarter of 2016. The purpose of the acquisition was for strategic reasons beneficial to the Company. The acquisition is consistent with its growth plans to expand into the markets in Grundy County, diversify its loan portfolio, and expand our core deposit base. The Company believes it is well-positioned to achieve stronger financial performance and enhance shareholder value through synergies of the combined operations. The Company accounted for the transaction under the acquisition method of accounting under FASB ASC Topic 805, Business Combinations , and thus, the financial position and results of operations of Mazon State Bank prior to the closing date were not included in the accompanying consolidated financial statements. The accounting required assets purchased and liabilities assumed to be recorded at their respective fair values at the date of acquisition. The Company determined the fair value with the assistance of third-party valuations, appraisals, and third-party advisors. The estimated fair values will be subject to refinement as additional information relative to the closing date fair values becomes available through the measurement period of approximately one year from consummation of the acquisition. During the three and nine months ended September 30, 2016, the Company incurred $643,000 and $1.2 million , respectively of merger related costs. The fair value of the assets acquired and liabilities assumed on July 1, 2016 were as follows (in thousands): As Recorded by Mazon State Bank Fair Value Adjustments As recorded by the Company Cash and due from banks $ 5,754 $ — $ 5,754 Federal funds sold 550 — 550 Securities available for sale 39,177 — 39,177 Nonmarketable equity securities 134 — 134 Loans, net of allowance of $243 32,381 (362 ) 32,019 Premises and equipment, net 899 3,294 4,193 Foreclosed assets 9 — 9 Cash surrender value of life insurance 2,317 — 2,317 Other assets 540 823 1,363 $ 81,761 $ 3,755 $ 85,516 Deposits $ 73,040 $ (49 ) $ 72,991 Deferred tax liability, net — 1,272 1,272 Other liabilities 833 — 833 $ 73,873 $ 1,223 $ 75,096 Excess of assets acquired over liabilities assumed $ 7,888 $ 2,532 $ 10,420 Less: Purchase price paid in cash 8,500 Bargain purchase gain $ 1,920 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Earnings per common share is computed using the two-class method. Basic earnings per common share is computed by dividing net income by the weighted-average number of common shares outstanding during the applicable period. Diluted earnings per share is computed by dividing net income by the weighted-average number of common shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation using the treasury stock method. The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted earnings per common share (dollars in thousands, except per share data). Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 Net income $ 4,135 $ 2,947 $ 8,427 $ 6,898 Weighted average shares outstanding for basic earnings per common share 17,189,113 16,993,822 17,165,808 16,910,441 Dilutive effect of stock-based compensation and warrants 376,554 167,961 326,595 138,526 Weighted average shares outstanding for diluted earnings per common share 17,565,667 17,161,783 17,492,403 17,048,967 Basic income per common share $ 0.24 $ 0.17 $ 0.49 $ 0.41 Diluted income per common share 0.24 0.17 0.48 0.40 |
Securities Available for Sale
Securities Available for Sale | 9 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities Available for Sale | Securities Available for Sale All securities are classified as “available for sale” as the Company intends to hold the securities for an indefinite period of time, but not necessarily to maturity. Securities available for sale are reported at fair value with unrealized gains or losses reported as a separate component of other comprehensive income, net of the related deferred tax effect. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. The amortized cost and fair value of securities available for sale, with gross unrealized gains and losses, follows (in thousands): September 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Residential collateralized mortgage obligations $ 55,620 $ 1,471 $ — $ 57,091 Residential mortgage backed securities 26,095 313 — 26,408 State and political subdivisions 100,881 3,715 33 104,563 $ 182,596 $ 5,499 $ 33 $ 188,062 December 31, 2015 Government sponsored enterprises $ 16,284 $ 125 $ — $ 16,409 Residential collateralized mortgage obligations 62,701 138 475 62,364 Residential mortgage backed securities 28,494 65 268 28,291 State and political subdivisions 96,480 2,178 118 98,540 $ 203,959 $ 2,506 $ 861 $ 205,604 Securities with a fair value of $101.2 million and $82.2 million were pledged as collateral on public funds, securities sold under agreements to repurchase or for other purposes as required or permitted by law as of September 30, 2016 and December 31, 2015 , respectively. The amortized cost and fair value of debt securities available for sale as of September 30, 2016 , by contractual maturity are shown below (in thousands). Maturities may differ from contractual maturities in residential collateralized mortgage obligations and residential mortgage backed securities because the mortgages underlying the securities may be called or repaid without any penalties. Therefore, these securities are segregated in the following maturity summary: Amortized Fair Cost Value Within 1 year $ 4,137 $ 4,146 Over 1 year through 5 years 25,467 25,689 Over 5 years through 10 years 32,839 34,054 Over 10 years 38,438 40,674 Residential collateralized mortgage obligations and mortgage backed securities 81,715 83,499 $ 182,596 $ 188,062 Realized gains on the sales of securities were $617,000 and $272,000 during the nine months ended September 30, 2016 and 2015 , respectively. There were $33,000 and $861,000 in securities with unrealized losses at September 30, 2016 and December 31, 2015 , respectively, and no unrealized losses which management believed were other-than-temporarily impaired. Unrealized losses and fair value aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position are summarized as of September 30, 2016 and December 31, 2015 are as follows (in thousands): Less than 12 Months 12 Months or More Total September 30, 2016 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses State and political subdivisions $ 9,395 $ 33 $ — $ — $ 9,395 $ 33 $ 9,395 $ 33 $ — $ — $ 9,395 $ 33 Less than 12 Months 12 Months or More Total December 31, 2015 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Residential collateralized mortgage obligations $ 46,373 $ 475 $ — $ — $ 46,373 $ 475 Residential mortgage backed securities 27,012 268 — — 27,012 268 State and political subdivisions 12,283 118 — — 12,283 118 $ 85,668 $ 861 $ — $ — $ 85,668 $ 861 |
Loans and Leases
Loans and Leases | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Loans and Leases | Loans and Leases A summary of the balances of loans follows (in thousands): September 30, 2016 December 31, 2015 Construction and Land Development $ 39,836 $ 22,082 Farmland and Agricultural Production 12,985 9,989 Residential 1-4 Family 167,388 135,864 Multifamily 31,880 34,272 Commercial Real Estate 419,958 381,098 Commercial and Industrial 274,889 179,623 Leases, net 739 — Consumer and other 9,286 9,417 956,961 772,345 Net deferred loan fees (6 ) (26 ) Allowance for loan losses (12,284 ) (11,741 ) $ 944,671 $ 760,578 The following table presents the contractual aging of the recorded investment in past due and non-accrual loans by class of loans as of September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 Current 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due and Still Accruing Total Accruing Loans Non-accrual Loans Total Loans Construction and Land Development $ 38,587 $ 164 $ — $ — $ 38,751 $ 1,085 $ 39,836 Farmland and Agricultural Production 12,985 — — — 12,985 — 12,985 Residential 1-4 Family 166,551 12 — — 166,563 825 167,388 Multifamily 31,880 — — — 31,880 — 31,880 Commercial Real Estate Retail 97,689 — — — 97,689 — 97,689 Office 53,848 — — — 53,848 — 53,848 Industrial and Warehouse 74,600 — — — 74,600 — 74,600 Health Care 28,737 — — — 28,737 — 28,737 Other 163,042 568 25 91 163,726 1,358 165,084 Commercial and Industrial 269,734 38 — — 269,772 5,117 274,889 Leases, net 739 — — — 739 — 739 Consumer and other 9,236 50 — — 9,286 — 9,286 Total $ 947,628 $ 832 $ 25 $ 91 $ 948,576 $ 8,385 $ 956,961 December 31, 2015 Current 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due and Still Accruing Total Accruing Loans Non-accrual Loans Total Loans Construction and Land Development $ 21,885 $ — $ 197 $ — $ 22,082 $ — $ 22,082 Farmland and Agricultural Production 9,989 — — — 9,989 — 9,989 Residential 1-4 Family 135,632 182 — — 135,814 50 135,864 Multifamily 34,272 — — — 34,272 — 34,272 Commercial Real Estate Retail 95,570 — — — 95,570 — 95,570 Office 55,151 — — — 55,151 — 55,151 Industrial and Warehouse 65,536 — — — 65,536 — 65,536 Health Care 29,985 — — — 29,985 — 29,985 Other 134,762 — — — 134,762 94 134,856 Commercial and Industrial 178,289 — — 67 178,356 1,267 179,623 Consumer and other 9,417 — — — 9,417 — 9,417 Total $ 770,488 $ 182 $ 197 $ 67 $ 770,934 $ 1,411 $ 772,345 As part of the ongoing monitoring of the credit quality of the Company’s loan portfolio, management categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt and comply with various terms of their loan agreements. The Company considers current financial information, historical payment experience, credit documentation, public information and current economic trends. Generally, all sizable credits receive a financial review no less than annually to monitor and adjust, if necessary, the credit’s risk profile. Credits classified as watch generally receive a review more frequently than annually. For special mention, substandard, and doubtful credit classifications, the frequency of review is increased to no less than quarterly in order to determine potential impact on credit loss estimates. The Company categorizes loans into the following risk categories based on relevant information about the ability of borrowers to service their debt: Pass - A pass asset is well protected by the current worth and paying capacity of the borrower (or guarantors, if any) or by the fair value, less cost to acquire and sell, of any underlying collateral in a timely manner. Pass assets also include certain assets considered watch, which are still protected by the worth and paying capacity of the borrower but deserve closer attention and a higher level of credit monitoring. Special Mention - A special mention asset, or risk rating of 5, has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date. Special mention assets are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification. Substandard - A substandard asset, or risk rating of 6 or 7, is an asset with a well-defined weakness that jeopardizes repayment, in whole or in part, of the debt. These credits are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged. These assets are characterized by the distinct possibility that the Company will or has sustained some loss of principal and/or interest if the deficiencies are not corrected. Loans rated a 6 are still on accrual status, while loans rated at 7 are placed on nonaccrual. Doubtful - An asset that has all the weaknesses, or risk rating of 8, inherent in the substandard classification, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. These credits have a high probability for loss, yet because certain important and reasonably specific pending factors may work toward the strengthening of the asset, its classification of loss is deferred until its more exact status can be determined. Loss - An asset, or portion thereof, classified as loss, or risk rated 9, is considered uncollectible and of such little value that its continuance as a bankable asset is not warranted. This classification does not necessarily mean that an asset has no recovery or salvage value but that it is not practical or desirable to defer writing off this basically worthless asset even though a partial recovery may occur in the future. There was no balance to report at September 30, 2016 and December 31, 2015 . Residential 1-4 family, consumer and other loans are assessed for credit quality based on the contractual aging status of the loan and payment activity. In certain cases, based upon payment performance, the loan being related with another commercial type loan or for other reasons, a loan may be categorized into one of the risk categories noted above. Such assessment is completed at the end of each reporting period. The following tables present the risk category of loans evaluated by internal asset classification based on the most recent analysis performed and the contractual aging as of September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 Pass Special Mention Substandard Doubtful Total Construction and Land Development $ 36,240 $ 2,511 $ 1,085 $ — $ 39,836 Farmland and Agricultural Production 12,942 — 43 — 12,985 Multifamily 31,101 779 — — 31,880 Commercial Real Estate Retail 86,149 2,501 9,039 — 97,689 Office 50,322 — 3,526 — 53,848 Industrial and Warehouse 73,799 801 — — 74,600 Health Care 28,737 — — — 28,737 Other 156,209 4,353 4,514 8 165,084 Commercial and Industrial 264,091 1,759 7,470 1,569 274,889 Leases, net 739 — — — 739 Total $ 740,329 $ 12,704 $ 25,677 $ 1,577 $ 780,287 September 30, 2016 Performing Non-performing (*) Total Residential 1-4 Family $ 166,563 $ 825 $ 167,388 Consumer and other 9,286 — 9,286 Total $ 175,849 $ 825 $ 176,674 December 31, 2015 Pass Special Mention Substandard Doubtful Total Construction and Land Development $ 19,450 $ 2,632 $ — $ — $ 22,082 Farmland and Agricultural Production 9,989 — — — 9,989 Multifamily 33,598 674 — — 34,272 Commercial Real Estate Retail 87,665 — 7,905 — 95,570 Office 55,151 — — — 55,151 Industrial and Warehouse 64,699 837 — — 65,536 Health Care 29,985 — — — 29,985 Other 128,988 2,664 3,192 12 134,856 Commercial and Industrial 173,324 4,714 355 1,230 179,623 Total $ 602,849 $ 11,521 $ 11,452 $ 1,242 $ 627,064 December 31, 2015 Performing Non-performing* Total Residential 1-4 Family $ 135,814 $ 50 $ 135,864 Consumer and other 9,417 — 9,417 Total $ 145,231 $ 50 $ 145,281 (*) Non-performing loans include those on non-accrual status and those that are 90 days or more past due and still on accrual. The following table provides additional detail of the activity in the allowance for loan losses, by portfolio segment, for the three months ended September 30, 2016 and 2015 (in thousands): September 30, 2016 Construction and Land Development Farmland and Agricultural Production Residential 1-4 Family Multifamily Commercial Real Estate Commercial and Industrial Leases Consumer and Other Total Allowance for loan losses: Beginning balance $ 424 $ 41 $ 1,277 $ 141 $ 4,988 $ 5,125 $ 2 $ 46 $ 12,044 Provision for loan losses 351 4 (9 ) 11 (361 ) 383 2 2 383 Loans charged-off — — (6 ) — — (330 ) — (4 ) (340 ) Recoveries of loans previously charged-off 18 — 1 — 5 172 — 1 197 Ending balance $ 793 $ 45 $ 1,263 $ 152 $ 4,632 $ 5,350 $ 4 $ 45 $ 12,284 September 30, 2015 Allowance for loan losses: Beginning balance $ 798 $ 27 $ 1,047 $ 95 $ 6,394 $ 3,895 $ — $ 164 $ 12,420 Provision for loan losses (135 ) (2 ) 69 (7 ) (760 ) 31 — (9 ) (813 ) Loans charged-off — — — — (444 ) (203 ) — (7 ) (654 ) Recoveries of loans previously charged-off 18 — 41 — 709 29 — 3 800 Ending balance $ 681 $ 25 $ 1,157 $ 88 $ 5,899 $ 3,752 $ — $ 151 $ 11,753 The following table provides additional detail of the activity in the allowance for loan losses, by portfolio segment, for the nine months ended September 30, 2016 and 2015 (in thousands): September 30, 2016 Construction and Land Development Farmland and Agricultural Production Residential 1-4 Family Multifamily Commercial Real Estate Commercial and Industrial Leases Consumer and Other Total Allowance for loan losses: Beginning balance $ 813 $ 43 $ 1,370 $ 141 $ 4,892 $ 4,286 $ — $ 196 $ 11,741 Provision for loan losses (67 ) 2 (123 ) 11 (279 ) 1,482 4 (147 ) 883 Loans charged-off — — (15 ) — — (1,017 ) — (7 ) (1,039 ) Recoveries of loans previously charged-off 47 — 31 — 19 599 — 3 699 Ending balance $ 793 $ 45 $ 1,263 $ 152 $ 4,632 $ 5,350 $ 4 $ 45 $ 12,284 September 30, 2015 Allowance for loan losses: Beginning balance $ 758 $ 459 $ 1,199 $ 67 $ 6,828 $ 4,296 $ — $ 298 $ 13,905 Provision for loan losses (130 ) (434 ) (59 ) 21 (1,108 ) 294 — (146 ) (1,562 ) Loans charged-off — — (195 ) — (548 ) (973 ) — (10 ) (1,726 ) Recoveries of loans previously charged-off 53 — 212 — 727 135 — 9 1,136 Ending balance $ 681 $ 25 $ 1,157 $ 88 $ 5,899 $ 3,752 $ — $ 151 $ 11,753 The following table presents the balance in the allowance for loan losses and the unpaid principal balance of loans by portfolio segment and based on impairment method as of September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 Construction and Land Development Farmland and Agricultural Production Residential 1-4 Family Multifamily Commercial Real Estate Commercial and Industrial Leases Consumer and other Total Period-ended amount allocated to: Individually evaluated for impairment $ — $ — $ 30 $ — $ — $ 937 $ — $ — $ 967 Collectively evaluated for impairment 793 45 1,233 152 4,632 4,413 4 45 11,317 Ending balance $ 793 $ 45 $ 1,263 $ 152 $ 4,632 $ 5,350 $ 4 $ 45 $ 12,284 Loans: Individually evaluated for impairment $ 1,084 $ — $ 2,015 $ — $ 7,055 $ 7,562 $ — $ — $ 17,716 Collectively evaluated for impairment 38,752 12,985 165,373 31,880 412,903 267,327 739 9,286 939,245 Ending balance $ 39,836 $ 12,985 $ 167,388 $ 31,880 $ 419,958 $ 274,889 $ 739 $ 9,286 $ 956,961 December 31, 2015 Period-ended amount allocated to: Individually evaluated for impairment $ — $ — $ 30 $ — $ — $ 441 $ — $ — $ 471 Collectively evaluated for impairment 813 43 1,340 141 4,892 3,845 — 196 11,270 Ending balance $ 813 $ 43 $ 1,370 $ 141 $ 4,892 $ 4,286 $ — $ 196 $ 11,741 Loans: Individually evaluated for impairment $ — $ — $ 1,661 $ — $ 4,381 $ 3,777 $ — $ — $ 9,819 Collectively evaluated for impairment 22,082 9,989 134,203 34,272 376,717 175,846 — 9,417 762,526 Ending balance $ 22,082 $ 9,989 $ 135,864 $ 34,272 $ 381,098 $ 179,623 $ — $ 9,417 $ 772,345 The following tables present additional detail regarding impaired loans, segregated by class, as of and for the three and nine months ended September 30, 2016 and year ended December 31, 2015 (dollars in thousands). The unpaid principal balance represents the recorded balance prior to any partial charge-offs. The recorded investment represents customer balances net of any partial charge-offs recognized on the loans. The interest income recognized column represents all interest income reported after the loan became impaired. September 30, 2016 Three Months Ended Nine Months Ended Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Construction and Land Development $ 1,085 $ 1,085 $ — $ 543 $ — $ 271 $ — Farmland and Agricultural Production — — — — — — — Residential 1-4 Family 1,593 1,553 — 1,612 15 1,391 30 Multifamily — — — — — — — Commercial Real Estate Retail 3,288 3,288 — 1,644 20 822 81 Office — — — — — 165 — Industrial and Warehouse — — — — — — — Health Care — — — — — — Other 3,831 3,767 — 3,786 14 3,823 43 Commercial and Industrial 5,937 4,888 — 4,090 — 3,652 — Consumer and other — — — — — — — With an allowance recorded: Construction and Land Development — — — — — — — Farmland and Agricultural Production — — — — — — — Residential 1-4 Family 461 461 30 462 6 465 17 Multifamily — — — — — — — Commercial Real Estate Retail — — — — — — — Office — — — — — — — Industrial and Warehouse — — — — — — — Health Care — — — — — — — Other — — — — — — — Commercial and Industrial 2,874 2,674 937 1,926 — 1,434 — Consumer and other — — — — — — — Total $ 19,069 $ 17,716 $ 967 $ 14,063 $ 55 $ 12,023 $ 171 December 31, 2015 Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Average Recorded Investment Interest Income Recognized With no related allowance recorded: Construction and Land Development $ — $ — $ — $ — $ — Farmland and Agricultural Production — — — — — Residential 1-4 Family 1,232 1,193 — 1,280 61 Multifamily — — — — — Commercial Real Estate Retail — — — — — Office 494 494 — 502 26 Industrial and Warehouse — — — 1,441 — Health Care — — — — — Other 3,952 3,887 — 5,015 127 Commercial and Industrial 3,331 3,131 — 3,640 130 Consumer and other — — — 4 — With an allowance recorded: Construction and Land Development — — — — — Farmland and Agricultural Production — — — — — Residential 1-4 Family 468 468 30 473 23 Multifamily — — — — — Commercial Real Estate Retail — — — — — Office — — — — — Industrial and Warehouse — — — — — Health Care — — — — — Other — — — 64 — Commercial and Industrial 1,109 646 441 491 — Consumer and other — — — — — Total $ 10,586 $ 9,819 $ 471 $ 12,910 $ 367 During the nine months ended September 30, 2016 , there was one troubled debt restructurings added as a result of the payment of real estate taxes. There were no troubled debt restructurings added during the nine months ended September 30, 2015. Troubled debt restructurings that were accruing were $4.2 million and $2.7 million as of September 30, 2016 and December 31, 2015 , respectively. Troubled debt restructurings that were non-accruing were $75,000 and $94,000 as of September 30, 2016 and December 31, 2015 . The following presents a rollfoward activity of troubled debt restructurings (in thousands, except number of loans): Nine months ended September 30, 2016 Recorded Investment Number of Loans Balance, beginning $ 2,832 6 Additions to troubled debt restructurings 2,006 1 Removal of troubled debt restructurings (519 ) (2 ) Charge-off related to troubled debt restructurings — — Transfers to other real estate owned — — Repayments and other reductions (55 ) — Balance, ending $ 4,264 5 Restructured loans are evaluated for impairment at each reporting date as part of the Company’s determination of the allowance for loan losses. |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2016 | |
Deposits [Abstract] | |
Deposits | Deposits The composition of interest-bearing deposits was as follows (in thousands): September 30, 2016 December 31, 2015 NOW and money market accounts $ 418,910 $ 336,197 Savings 61,399 36,207 Time deposit certificates of $250,000 or more 111,384 69,961 Time deposit certificates of $100,000 to $250,000 123,917 127,091 Other time deposit certificates 103,379 100,472 $ 818,989 $ 669,928 The composition of brokered deposits included in deposits was as follows (in thousands): September 30, 2016 December 31, 2015 NOW and money market accounts $ 35,001 $ 35,271 Time deposit certificates 42,842 11,874 $ 77,843 $ 47,145 |
Other Borrowed Funds
Other Borrowed Funds | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Other Borrowed Funds | Other Borrowed Funds The composition of other borrowed funds was as follows (in thousands): September 30, 2016 December 31, 2015 Securities sold under agreements to repurchase $ 24,561 $ 25,069 Federal Home Loan Bank Advances Maturity dates, fixed interest rate Matures January 6, 2016, 0.28% — 11,000 Matures January 4, 2016, 0.16% — 5,000 Matures October 13, 2016, 0.32% 9,000 — Matures November 4, 2016, 0.40% 6,000 — Total Federal Home Loan Bank Advances 15,000 16,000 Secured borrowings 7,018 11,946 $ 46,579 $ 53,015 Securities sold under agreements to repurchase are agreements in which the Bank acquires funds by selling securities to another party under a simultaneous agreement to repurchase the same securities at a specified price and date. These agreements represent a demand deposit account product to clients that sweep their balances in excess of an agreed upon target amount into overnight repurchase agreements. A collateral pledge agreement exists whereby at all times, the Bank must keep on hand, free of all other pledges, liens, and encumbrances, commercial real estate loans, first mortgage loans, and home equity loans with unpaid principal balances aggregating no less than 133% for first mortgage loans and 200% for home equity loans of the outstanding secured advances from the Federal Home Loan Bank of Chicago (“FHLB”). The Bank had $383.0 million and $338.0 million of loans pledged as collateral for FHLB advances as of September 30, 2016 and December 31, 2015 , respectively. There were $15.0 million and $16.0 million in advances outstanding at September 30, 2016 and December 31, 2015 , respectively. All FHLB borrowings were repaid on their maturity dates. On June 29, 2015, the Company entered into a credit agreement with an unaffiliated bank for two credit facilities (secured borrowings). The credit facilities include a $4.0 million revolving line of credit, which had no balance at September 30, 2016 and a term loan with a balance of $7.0 million . The revolving line matures in 2020 and the term loan matures in 2021. The credit facilities have an annual interest rate of 30 day LIBOR plus 2.25% , which was 2.69% at September 30, 2016 . The credit facilities are collateralized by the stock of the Bank. The Bank has entered into collateral pledge agreements whereby the Bank pledges commercial, commercial real estate, agricultural and consumer loans to the Federal Reserve Bank of Chicago Discount Window which allows the Bank to borrow on a short term basis, typically overnight. The Bank had $186.4 million and $100.1 million of loans pledged as collateral under these agreements as of September 30, 2016 and December 31, 2015 , respectively. There were no borrowings outstanding at September 30, 2016 and December 31, 2015 . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense recognized is as follows (in thousands): Nine months ended September 30, 2016 2015 Current $ 190 $ 108 Deferred 2,776 3,419 $ 2,966 $ 3,527 The table below presents a reconciliation of the amount of income taxes determined by applying the U.S. federal income tax rate to pretax income (in thousands): Nine months ended September 30, 2016 2015 Federal income tax at statutory rate $ 3,987 $ 3,648 Increase (decrease) due to: Federal tax exempt (577 ) (419 ) State income tax, net of federal benefit 583 533 Benefit of income taxed at lower rate (114 ) (104 ) Tax exempt income (11 ) (24 ) Cash surrender value of life insurance (155 ) (33 ) Bargain purchase gain (652 ) — Other (95 ) (74 ) $ 2,966 $ 3,527 Deferred tax assets and liabilities consist of (in thousands): September 30, 2016 December 31, 2015 Deferred tax assets: Allowance for loan losses $ 4,699 $ 4,169 Merger expenses 186 140 Organization expenses 205 226 Net operating losses 311 3,774 Contribution carryforward 9 5 Restricted stock 222 — Non-qualified stock options 715 644 Foreclosed assets 282 315 Tax credits 396 334 Other 203 412 7,228 10,019 Deferred tax liabilities: Depreciation (1,138 ) (186 ) Core deposit intangible (305 ) — Unrealized gains on securities available for sale (2,132 ) (642 ) (3,575 ) (828 ) Net deferred tax asset $ 3,653 $ 9,191 Under U.S. GAAP, a valuation allowance against a net deferred tax asset is required to be recognized if it is more-likely-than-not that a deferred tax asset will not be realized. The determination of the realizability of the deferred tax asset is highly subjective and dependent upon judgment concerning management’s evaluation of both positive and negative evidence, forecasts of future income, applicable tax planning strategies and assessments of current and future economic and business conditions. As of September 30, 2016 , the Company did not have a valuation allowance against the net deferred tax assets. The Company had a federal net operating loss carryforward of $736,000 and $9.3 million at September 30, 2016 and December 31, 2015 , respectively, which could be used to offset future regular corporate federal income tax. The net operating loss carryforward expires during the December 31, 2033 fiscal tax year. The Company had an Illinois net operating loss carryforward of $1.1 million and $11.1 million at September 30, 2016 and December 31, 2015 , respectively, that could be used to offset future regular corporate state income tax. This Illinois net operating loss carryforward will expire during the December 31, 2028 fiscal tax year. |
Stock Compensation Plans
Stock Compensation Plans | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Compensation Plans | Stock Compensation Plans The Company maintains the First Community Financial Partners, Inc. Amended and Restated 2008 Equity Incentive Plan (the “2008 Equity Incentive Plan”), which assumed and incorporated all outstanding awards under previously adopted Company equity incentive plans. The 2008 Equity Incentive Plan allowed for the granting of awards including stock options, restricted stock, restricted stock units, stock appreciation rights, stock awards and cash incentive awards. This plan was amended in December 2011 to increase the number of shares authorized for delivery by 1,000,000 shares. As a result, under the 2008 Equity Incentive Plan, 2,430,000 shares of Company common stock were reserved for the granting of awards. On August 15, 2013, the Company adopted the First Community Financial Partners, Inc. 2013 Equity Incentive Plan (the “2013 Equity Incentive Plan”). The 2013 Equity Incentive Plan allowed for the granting of awards including nonqualified stock options, restricted stock, restricted stock units, stock appreciation rights, stock awards and cash incentive awards. This plan was amended in December 2014 to increase the number of shares authorized for delivery by 900,000 shares. As a result, under this plan, 1,000,000 shares of Company common stock were reserved for the granting of awards. On May 19, 2016, the Company adopted the First Community Financial Partners, Inc. 2016 Equity Incentive Plan (the “2016 Equity Incentive Plan”). The 2016 Equity Incentive Plan allows for the grant of awards including nonqualified stock options, incentive stock options, stock appreciation rights, stock awards, and cash incentive awards. This plan allows for a maximum of 2,000,000 shares of the Company common stock have been reserved for the granting of awards. The 2016 Equity Incentive Plan replaced the 2008 Equity Incentive Plan and the 2013 Equity Incentive Plan, and the Company will not make any new award grants under the prior plans. The following table summarizes data concerning stock options (aggregate intrinsic value in thousands): Nine months ended, Year ended, September 30, 2016 December 31, 2015 Shares Weighted Average Exercise Price Aggregate Intrinsic Value Shares Weighted Average Exercise Price Aggregate Intrinsic Value Outstanding at beginning of year 1,305,504 $ 6.69 $ 1,308 1,089,404 $ 7.00 $ — Granted 343,950 7.73 591 217,500 5.20 444 Exercised (43,720 ) 7.08 901 — — — Canceled — — — — — — Expired — — — — — — Forfeited — — — (1,400 ) 8.25 — Outstanding at end of period 1,605,734 $ 6.91 $ 4,157 1,305,504 $ 6.69 $ 1,308 Exercisable at end of period 1,243,234 $ 7.05 $ 4,232 1,088,004 $ 6.99 $ 864 The aggregate intrinsic value of a stock option in the table above represents the total pre-tax amount by which the current market value of the underlying stock exceeds the price of the option that would have been received by the option holders had all option holders exercised their options on September 30, 2016 . There was $4.2 million and $1.3 million in intrinsic value of the stock options outstanding at September 30, 2016 and December 31, 2015 . The intrinsic value will change when the market value of the Company’s stock changes. The fair value (present value of the estimated future benefit to the option holder) of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. The Company recognized $293,000 and $47,000 , respectively, of compensation expense related to the stock options for the nine months ended September 30, 2016 and 2015. At September 30, 2016 , there was $170,000 in compensation expense to be recognized related to outstanding stock options. Information pertaining to options outstanding at September 30, 2016 is as follows: Exercise Prices Number Outstanding Weighted Average Remaining Life (yrs) Number Exercisable $5.00 364,376 2.79 364,376 $5.20 217,500 8.26 72,500 $5.53 6,000 3.59 6,000 $6.25 25,000 4.03 25,000 $7.24 217,500 9.26 — $7.50 405,380 0.82 405,380 $8.00 4,000 2.96 4,000 $8.58 126,450 9.76 126,450 $9.25 239,528 1.63 239,528 1,605,734 1,243,234 No options vested during the three or nine months ended September 30, 2016 . The Company grants restricted stock units to select officers and directors within the organization under its equity incentive plans, which entitle the holder to receive shares of Company common stock in the future, subject to certain terms, conditions and restrictions. Holders of restricted stock units are also entitled to receive additional units equal in value to any dividends paid with respect to the restricted stock units during the vesting period. Compensation expense for the restricted stock units equals the market price of the related stock at the date of grant and is amortized on a straight-line basis over the vesting period. In January 2016, restricted stock units were issued to directors and participants of a long term incentive plan, with certain performance conditions for a minimum of 52,301 shares, and up to a maximum of 131,948 shares. These performance conditions are expected to be met by the end of 2016 and the expense related to these awards will be recognized over the year. The Company recognized compensation expense of $607,000 and $716,000 , respectively, for the nine months ended September 30, 2016 and 2015 , related to the restricted stock units. Total unrecognized compensation expense related to restricted stock grants was approximately $270,000 as of September 30, 2016 . The following is a summary of nonvested restricted stock units: September 30, 2016 Number of Shares Weighted Average Grant Date Fair Value Nonvested shares, at beginning of year 25,000 $ 5.14 Granted — — Vested (11,666 ) 4.73 Canceled — — Forfeited — — Nonvested shares, end of period 13,334 $ 5.50 |
Concentrations, Commitments and
Concentrations, Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Concentrations, Commitments and Contingencies | Concentrations, Commitments and Contingencies Concentrations of credit risk : In addition to financial instruments with off-balance-sheet risk, the Company, to a certain extent, is exposed to varying risks associated with concentrations of credit. Concentrations of credit risk generally exist if a number of borrowers are engaged in similar activities and have similar economic characteristics that would cause their ability to meet contractual obligations to be similarly affected by economic or other conditions. The Company conducts substantially all of its lending activities in Will, Grundy, DuPage, Cook and Kane counties in Illinois and their surrounding communities. Loans granted to businesses are primarily secured by business assets, investment real estate, owner-occupied real estate or personal assets of commercial borrowers. Loans to individuals are primarily secured by personal residences or other personal assets. Since the Company’s borrowers and its loan collateral have geographic concentration in its primary market area, the Company could have exposure to declines in the local economy and real estate market. However, management believes that the diversity of its customer base and local economy, its knowledge of the local market, and its proximity to customers limits the risk of exposure to adverse economic conditions. Credit related financial instruments : The Company is party to credit related financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The Company’s exposure to credit loss is represented by the contractual amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance-sheet instruments. A summary of the Company’s commitments is as follows (in thousands): September 30, 2016 December 31, 2015 Commitments to extend credit $ 269,551 $ 179,517 Standby letters of credit 10,492 10,353 Performance letters of credit 2,357 1,088 $ 282,400 $ 190,958 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Because many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company, is based on management’s credit evaluation of the party. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements and, generally, have terms of one year or less. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company holds collateral, which may include accounts receivable, inventory, property and equipment or, income producing properties, supporting those commitments if deemed necessary. In the event the customer does not perform in accordance with the terms of the agreement with the third party, the Company would be required to fund the commitment. The maximum potential amount of future payments the Company could be required to make is represented by the contractual amount shown in the summary above. If the commitment were funded, the Company would be entitled to seek recovery from the customer. Contingencies : In the normal course of business, the Company is involved in various legal proceedings. In the opinion of management, any liability resulting from such pending proceedings would not be expected to have a material adverse effect on the Company’s consolidated financial statements. |
Capital and Regulatory Matters
Capital and Regulatory Matters | 9 Months Ended |
Sep. 30, 2016 | |
Regulatory Capital Requirements [Abstract] | |
Capital and Regulatory Matters | Capital and Regulatory Matters The Company and Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and Bank’s financial results and condition. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies. As of September 30, 2016 , the Bank was well capitalized under the regulatory framework for prompt corrective action. Currently, to be categorized as well capitalized, the Bank must maintain minimum total risk-based, Tier I risk-based, common equity tier 1 capital, and Tier 1 leverage ratios as set forth in the following table. Bank regulators can modify capital requirements as part of their examination process. In July 2013, the U.S. federal banking authorities approved the implementation of the Basel III regulatory capital reforms and issued rules effecting certain changes required by the Dodd-Frank Act (the “Basel III Rules”). The Basel III Rules are applicable to all U.S. banks that are subject to minimum capital requirements, as well as to bank and savings and loan holding companies other than “small bank holding companies” (generally non-public bank holding companies with consolidated assets of less than $1 billion ). The Basel III Rules not only increased most of the required minimum regulatory capital ratios, but they introduced a new common equity Tier 1 capital ratio and the concept of a capital conservation buffer. The Basel III Rules also expanded the definition of capital by establishing criteria that instruments must meet to be considered additional Tier 1 capital (Tier 1 capital in addition to common equity) and Tier 2 capital. A number of instruments that generally qualified as Tier 1 capital will not qualify, or their qualifications will change when the Basel III rules are fully implemented. The Basel III Rules also permitted banking organizations with less than $15.0 billion in assets to retain, through a one-time election, the existing treatment for accumulated other comprehensive income, which currently does not affect regulatory capital. The Company made this one time election in the first quarter of 2015. The Basel III Rules have maintained the general structure of the current prompt corrective action framework, while incorporating the increased requirements. The prompt corrective action guidelines were also revised to add the common equity Tier 1 capital ratio. In order to be a “well-capitalized” depository institution under the new regime, a bank and holding company must maintain a common equity Tier 1 capital ratio of 6.5% or more; a Tier 1 capital ratio of 8% or more; a total capital ratio of 10% or more; and a leverage ratio of 5% or more. The Company and Bank became subject to the new Basel III Rules on January 1, 2015, with phase-in periods for many of the changes. Management believes, as of September 30, 2016 and December 31, 2015 , the Company and the Bank met all capital adequacy requirements to which they were subject. As of September 30, 2016 September 30, 2016 December 31, 2015 For Capital Adequacy Purposes With Capital Conservation buffer Regulatory Minimum To Be Well Capitalized under Prompt Corrective Action Provisions Ratio Amount Ratio Amount Ratio Amount Ratio Amount Bank capital ratios: Total capital to risk-weighted assets 13.69 % 140,047 15.79 % 133,247 8.625 % 88,215 10.00 % 102,279 Tier 1 capital to risk weighted assets 12.49 % 127,763 14.54 % 122,664 6.625 % 67,760 8.00 % 81,823 Tier 1 common equity to risk-weighted assets 12.49 % 127,763 14.54 % 122,664 5.125 % 52,418 6.50 % 66,481 Tier 1 leverage to average assets 10.52 % 127,763 11.71 % 122,664 4.00 % 48,563 5.00 % 60,704 Company capital ratios: Total capital to risk-weighted assets 13.52 % 138,642 14.69 % 124,159 8.625 % 88,415 N/A N/A Tier 1 capital to risk weighted assets 10.83 % 111,058 11.62 % 98,276 6.625 % 67,913 N/A N/A Tier 1 common equity to risk-weighted assets 10.83 % 111,058 11.62 % 98,276 5.125 % 52,536 N/A N/A Tier 1 leverage to average assets 9.15 % 111,058 9.36 % 98,276 4.00 % 48,593 N/A N/A Under the Illinois Banking Act, Illinois-chartered banks generally may not pay dividends in excess of their net profits, after first deducting their losses (including any accumulated deficit) and provision for loan losses. The payment of dividends by any bank is affected by the requirement to maintain adequate capital pursuant to applicable capital adequacy guidelines and regulations, and a financial institution generally is prohibited from paying any dividends if, following payment thereof, the institution would be undercapitalized. Moreover, the Federal Deposit Insurance Corporation (“FDIC”) prohibits the payment of any dividends by a bank if the FDIC determines such payment would constitute an unsafe or unsound practice. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements ASC Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact. ASC Topic 820 requires the use of valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert expected future amounts, such as cash flows or earnings, to a single present value amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement cost). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. In that regard, ASC Topic 820 establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: Level 1 : Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 : Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 : Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality, the Company’s creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. Our valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincides with the Company’s monthly and/or quarterly valuation process. Financial Instruments Recorded at Fair Value on a Recurring Basis Securities Available for Sale: The fair value of the Company’s securities available for sale is determined using Level 2 inputs from independent pricing services. Level 2 inputs consider observable data that may include dealer quotes, market spread, cash flows, treasury yield curve, trading levels, credit information and terms, among other factors. Certain state and political subdivision securities are not valued based on observable transactions and are, therefore, classified as Level 3. Derivatives: The Bank provides clients with interest rate swap transactions and offset the transactions with interest rate swap transactions with another financial institution as a means of providing loan terms agreeable to both parties. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative and classified as Level 2. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including LIBOR rate curves. The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of September 30, 2016 and December 31, 2015 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (in thousands): September 30, 2016 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial Assets Securities Available for Sale: Residential collateralized mortgage obligations $ 57,091 $ — $ 57,091 $ — Residential mortgage backed securities 26,408 — 26,408 — State and political subdivisions 104,563 — 103,059 1,504 Derivative financial instruments 73 — 73 — Financial Liabilities Derivative financial instruments 73 — 73 — December 31, 2015 Financial Assets Securities Available for Sale: Government sponsored enterprises $ 16,409 $ — $ 16,409 $ — Residential collateralized mortgage obligations 62,364 — 62,364 — Residential mortgage backed securities 28,291 — 28,291 — State and political subdivisions 98,540 — 97,036 1,504 Derivative financial instruments 95 — 95 — Financial Liabilities Derivative financial instruments 95 — 95 — The significant unobservable inputs used in the Level 3 fair value measurements of the Company’s state and political subdivisions in the table above primarily relate to the discounted cash flows including the bond’s coupon, yield and expected maturity date. The Company did not have any transfers between Level 1 and Level 2 of the fair value hierarchy during the nine months ended September 30, 2016 . The Company’s policy for determining transfers between levels occurs at the end of the reporting period when circumstances in the underlying valuation criteria change and result in transfer between levels. The following tables present additional information about assets and liabilities measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs to determine fair value (in thousands): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) State and political subdivisions Beginning balance, December 31, 2015 $ 1,504 Total gains or losses (realized/unrealized) included in other comprehensive income Included in earnings — Purchases — Paydowns and maturities — Transfers in and/or out of Level 3 — Ending balance, September 30, 2016 $ 1,504 Beginning balance, December 31, 2014 $ 1,514 Total gains or losses (realized/unrealized) included in other comprehensive income (9 ) Included in earnings — Purchases — Paydowns and maturities — Transfers in and/or out of Level 3 — Ending balance, September 30, 2015 $ 1,505 Financial Instruments Recorded at Fair Value on a Nonrecurring Basis The Company may be required, from time to time, to measure certain assets and liabilities at fair value on a nonrecurring basis in accordance with generally accepted accounting principles. These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period. Assets measured at fair value on a nonrecurring basis are set forth below: September 30, 2016 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial Assets Mortgage loans held for sale $ 1,331 $ — $ — $ 1,331 Impaired loans 16,749 — — 16,749 Foreclosed assets 725 — — 725 December 31, 2015 Financial Assets Mortgage loans held for sale $ 400 $ — $ — $ 400 Impaired loans 9,348 — — 9,348 Foreclosed assets 5,487 — — 5,487 The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis for which the Company has utilized Level 3 inputs to determine fair value: Quantitative Information about Level 3 Fair Value Measurements Fair Value Estimate Valuation Techniques Unobservable Input Discount Range Assets September 30, 2016 Mortgage loans held for sale $ 1,331 Secondary market pricing Selling costs — Impaired loans 16,749 Appraisal of Collateral Appraisal adjustments Selling costs 10% to 25% Foreclosed assets 725 Appraisal of Collateral Selling costs 10.00% December 31, 2015 Mortgage loans held for sale 400 Secondary market pricing Selling costs — Impaired loans 9,348 Appraisal of Collateral Appraisal adjustments Selling costs 10% to 25% Foreclosed assets 5,487 Appraisal of Collateral Selling costs 10.00% Impaired loans : Impaired loans are evaluated and valued at the time the loan is identified as impaired, at the lower of cost or fair value. Fair value is measured based on the value of the collateral securing these loans and is classified at a Level 3 in the fair value hierarchy. The fair value for an impaired loan is generally determined utilizing appraisals for real estate loans and value guides or consultants for commercial and industrial loans and other loans secured by items such as equipment, inventory, accounts receivable or vehicles. In substantially all instances, a 10% discount is utilized for selling costs which includes broker fees and closing costs. It is our general practice to obtain updated values on impaired loans every twelve to eighteen months. In instances where the appraisal is greater than one year old, an additional discount is considered ranging from 5% to 15% . Any adjustment is based on either comparisons from other recent appraisals obtained by the Company on like properties or using third party resources such as real estate brokers or Reis, Inc., a nationally recognized provider of commercial real estate information including real estate values. As of September 30, 2016 and December 31, 2015 , approximately $2.6 million , or 26% , and $3.1 million , or 32% , of impaired loans were evaluated for impairment using appraisals performed within twelve months of these dates, respectively. Loans Held for Sale: The fair value of loans held for sale is determined using quoted secondary market prices and classified as Level 2. Foreclosed assets : Foreclosed assets upon initial recognition are measured and reported at fair value through a charge-off to the allowance for loan losses based upon the fair value of the foreclosed asset. Fair values are generally based on third party appraisals of the property resulting in Level 3 classification. The appraised value is discounted by 10% for estimated selling costs which includes broker fees and closing costs and appraisals are obtained annually. Disclosures about Fair Value of Financial Instruments, requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet. Fair value is determined under the framework established by Fair Value Measurements , based upon criteria noted above. Certain financial instruments and all non-financial instruments are excluded from the disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value at the Company. The methodologies for measuring fair value of financial assets and financial liabilities that are measured at fair value on a recurring or nonrecurring basis are discussed above. The methodologies for other financial assets and financial liabilities are discussed below. The following methods and assumptions were used by the Company in estimating the fair value disclosures of its other financial instruments: Cash and due from banks : The carrying amounts reported in the consolidated balance sheets for cash and due from banks and approximate their fair values. Interest-bearing deposits in banks : The carrying amounts of interest-bearing deposits maturing within one year approximate their fair values. Nonmarketable equity securities : These securities are either redeemable at par or current redemption values; therefore, market value equals cost. Loans : For those variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. The fair values for fixed rate and all other loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers with similar credit quality. Deposits : The fair values disclosed for deposits with no defined maturities are equal to their carrying amounts, which represent the amount payable on demand. The carrying amounts for variable-rate certificates of deposit approximate their fair value at the reporting date. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits. Subordinated debt : The fair values of the Company’s subordinated debt are estimated using discounted cash flows based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. Other borrowed funds : The carrying amounts of securities sold under repurchase agreements, term notes, revolving lines of credit and mortgage notes payable approximate their fair values. Accrued interest receivable and payable : The carrying amounts of accrued interest approximate their fair values. Off-balance-sheet instruments : Fair values for the Company’s off-balance-sheet lending commitments (standby letters of credit and commitments to extend credit) are based on fees currently charged to enter into similar agreements taking into account the remaining term of the agreements and the counterparties’ credit standing. The fair value of these commitments is not material. The estimated fair values of the Company’s financial instruments are as follows as of September 30, 2016 (in thousands): Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets: Cash and due from banks $ 21,622 $ 21,622 $ 21,622 $ — $ — Federal funds sold 550 550 550 — — Interest-bearing deposits in banks 33,349 33,349 33,349 — — Securities available for sale 188,062 188,062 — 186,558 1,504 Nonmarketable equity securities 3,959 3,959 — — 3,959 Mortgage loans held for sale 1,331 1,331 — — 1,331 Loans, net 944,671 930,266 — — 930,266 Accrued interest receivable 3,255 3,255 3,255 — — Derivative financial instruments 73 73 — 73 — Financial liabilities: Non-interest bearing deposits 246,262 246,262 246,262 — — Interest-bearing deposits 818,989 806,285 475,617 — 330,668 Other borrowed funds 46,579 46,274 46,274 — — Subordinated debt 15,300 16,228 — — 16,228 Accrued interest payable 393 393 393 — — Derivative financial instruments 73 73 — 73 — The estimated fair values of the Company’s financial instruments are as follows as of December 31, 2015 (in thousands): Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets: Cash and due from banks $ 10,699 $ 10,699 $ 10,699 $ — $ — Interest-bearing deposits in banks 7,406 7,406 7,406 — — Securities available for sale 205,604 205,604 — 204,100 1,504 Nonmarketable equity securities 1,367 1,367 — — 1,367 Mortgage loans held for sale 400 400 — — 400 Loans, net 760,578 760,159 — — 760,159 Accrued interest receivable 3,106 3,106 3,106 — — Derivative financial instruments 95 95 — 95 — Financial liabilities: Non-interest bearing deposits 196,063 196,063 196,063 — — Interest-bearing deposits 669,928 663,174 372,404 — 290,770 Other borrowed funds 53,015 53,015 53,015 — — Subordinated debt 15,300 15,656 — — 15,656 Accrued interest payable 545 545 545 — — Derivative financial instruments 95 95 — 95 — |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Derivatives and Hedging Activities Derivative contracts entered into by the Bank are limited to those that do not qualify for hedge accounting treatment. The Bank provides clients with interest rate swap transactions and offsets the transactions with interest rate swap transactions with another financial institution as a means of providing loan terms agreeable to both parties. As of September 30, 2016 and December 31, 2015 , there were $1.2 million and $1.3 million , respectively, outstanding notional values of swaps where the Bank receives a variable rate of interest and the client receives a fixed rate of interest. This is offset with counterparty contracts where the Bank pays a floating rate of interest and receives a fixed rate of interest. The estimated fair value of interest rate swaps was $73,000 and $95,000 as of September 30, 2016 and December 31, 2015 , respectively, and was recorded gross as an asset and a liability. Swaps with clients and third-party financial institutions are carried at fair value with adjustments recorded in other income. The gross amount of the adjustments to the income statement were $14,000 and $28,000 during the three months ended September 30, 2016 and September 30, 2015 , respectively. |
Merger Transaction
Merger Transaction | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Merger Transaction | Acquisition On July 1, 2016, the Company completed its acquisition of Mazon State Bank, an Illinois state-chartered commercial bank, pursuant to that certain Agreement and Plan of Merger dated March 14, 2016 (the “Merger Agreement”) by and among the Company, the Bank, Mazon State Bank and First Mazon Bancorp, Inc., a Delaware corporation and the former parent company of Mazon State Bank. Under the terms of the Merger Agreement, the Company acquired Mazon State Bank, through the merger of Mazon State Bank with and into the Bank, for aggregate consideration of $8.5 million in cash. The three branches of Mazon State Bank opened on July 1, 2016 as branches of the Bank. The system integration was completed during the third quarter of 2016. The purpose of the acquisition was for strategic reasons beneficial to the Company. The acquisition is consistent with its growth plans to expand into the markets in Grundy County, diversify its loan portfolio, and expand our core deposit base. The Company believes it is well-positioned to achieve stronger financial performance and enhance shareholder value through synergies of the combined operations. The Company accounted for the transaction under the acquisition method of accounting under FASB ASC Topic 805, Business Combinations , and thus, the financial position and results of operations of Mazon State Bank prior to the closing date were not included in the accompanying consolidated financial statements. The accounting required assets purchased and liabilities assumed to be recorded at their respective fair values at the date of acquisition. The Company determined the fair value with the assistance of third-party valuations, appraisals, and third-party advisors. The estimated fair values will be subject to refinement as additional information relative to the closing date fair values becomes available through the measurement period of approximately one year from consummation of the acquisition. During the three and nine months ended September 30, 2016, the Company incurred $643,000 and $1.2 million , respectively of merger related costs. The fair value of the assets acquired and liabilities assumed on July 1, 2016 were as follows (in thousands): As Recorded by Mazon State Bank Fair Value Adjustments As recorded by the Company Cash and due from banks $ 5,754 $ — $ 5,754 Federal funds sold 550 — 550 Securities available for sale 39,177 — 39,177 Nonmarketable equity securities 134 — 134 Loans, net of allowance of $243 32,381 (362 ) 32,019 Premises and equipment, net 899 3,294 4,193 Foreclosed assets 9 — 9 Cash surrender value of life insurance 2,317 — 2,317 Other assets 540 823 1,363 $ 81,761 $ 3,755 $ 85,516 Deposits $ 73,040 $ (49 ) $ 72,991 Deferred tax liability, net — 1,272 1,272 Other liabilities 833 — 833 $ 73,873 $ 1,223 $ 75,096 Excess of assets acquired over liabilities assumed $ 7,888 $ 2,532 $ 10,420 Less: Purchase price paid in cash 8,500 Bargain purchase gain $ 1,920 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Emerging Growth Company Critical Accounting Policy Disclosure | The Company qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act (the “JOBS Act”). Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933 for complying with new or revised accounting standards. As an emerging growth company, the Company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company elected to take advantage of the benefits of this extended transition period. Management anticipates that the Company will no longer be considered an emerging growth company, and thus will no longer be eligible to use this extended transition period, after the fiscal year ending December 31, 2018. |
New Accounting Pronouncements | In February 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) . The ASU requires a lessee to recognize on the balance sheet assets and liabilities for leases with lease terms of more than 12 months. Consistent with current U.S. GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. Unlike U.S. GAAP, which requires that only capital leases be recognized on the balance sheet, the ASU requires that both types of leases by recognized on the balance sheet. For public companies, this update will be effective for interim and annual periods beginning after December 15, 2018. Early application is permitted. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update No. 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . Among other items, the ASU, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. For public companies, this update will be effective for interim and annual periods beginning after December 15, 2017. The effect of the adoption of this guidance is being evaluated by the Company. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The ASU requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forwardlooking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. Additionally, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. For the Company, this update will be effective for interim and annual periods beginning after December 15, 2019. The Company has not yet determined the impact the adoption of ASU 2016-13 will have on the consolidated financial statements. |
Acquisition (Tables)
Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Fair Value of the Assets Acquired and Liabilities Assumed | The fair value of the assets acquired and liabilities assumed on July 1, 2016 were as follows (in thousands): As Recorded by Mazon State Bank Fair Value Adjustments As recorded by the Company Cash and due from banks $ 5,754 $ — $ 5,754 Federal funds sold 550 — 550 Securities available for sale 39,177 — 39,177 Nonmarketable equity securities 134 — 134 Loans, net of allowance of $243 32,381 (362 ) 32,019 Premises and equipment, net 899 3,294 4,193 Foreclosed assets 9 — 9 Cash surrender value of life insurance 2,317 — 2,317 Other assets 540 823 1,363 $ 81,761 $ 3,755 $ 85,516 Deposits $ 73,040 $ (49 ) $ 72,991 Deferred tax liability, net — 1,272 1,272 Other liabilities 833 — 833 $ 73,873 $ 1,223 $ 75,096 Excess of assets acquired over liabilities assumed $ 7,888 $ 2,532 $ 10,420 Less: Purchase price paid in cash 8,500 Bargain purchase gain $ 1,920 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Reconciliation of the Number of Shares Used in the Calculation of Basic and Diluted Earnings per Common Share | The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted earnings per common share (dollars in thousands, except per share data). Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 Net income $ 4,135 $ 2,947 $ 8,427 $ 6,898 Weighted average shares outstanding for basic earnings per common share 17,189,113 16,993,822 17,165,808 16,910,441 Dilutive effect of stock-based compensation and warrants 376,554 167,961 326,595 138,526 Weighted average shares outstanding for diluted earnings per common share 17,565,667 17,161,783 17,492,403 17,048,967 Basic income per common share $ 0.24 $ 0.17 $ 0.49 $ 0.41 Diluted income per common share 0.24 0.17 0.48 0.40 |
Securities Available for Sale (
Securities Available for Sale (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost and Fair Value of Securities Available for Sale | The amortized cost and fair value of securities available for sale, with gross unrealized gains and losses, follows (in thousands): September 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Residential collateralized mortgage obligations $ 55,620 $ 1,471 $ — $ 57,091 Residential mortgage backed securities 26,095 313 — 26,408 State and political subdivisions 100,881 3,715 33 104,563 $ 182,596 $ 5,499 $ 33 $ 188,062 December 31, 2015 Government sponsored enterprises $ 16,284 $ 125 $ — $ 16,409 Residential collateralized mortgage obligations 62,701 138 475 62,364 Residential mortgage backed securities 28,494 65 268 28,291 State and political subdivisions 96,480 2,178 118 98,540 $ 203,959 $ 2,506 $ 861 $ 205,604 |
Securities Segregated by Maturity | Therefore, these securities are segregated in the following maturity summary: Amortized Fair Cost Value Within 1 year $ 4,137 $ 4,146 Over 1 year through 5 years 25,467 25,689 Over 5 years through 10 years 32,839 34,054 Over 10 years 38,438 40,674 Residential collateralized mortgage obligations and mortgage backed securities 81,715 83,499 $ 182,596 $ 188,062 |
Unrealized Losses and Fair Value Aggregated by Investment Category | Unrealized losses and fair value aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position are summarized as of September 30, 2016 and December 31, 2015 are as follows (in thousands): Less than 12 Months 12 Months or More Total September 30, 2016 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses State and political subdivisions $ 9,395 $ 33 $ — $ — $ 9,395 $ 33 $ 9,395 $ 33 $ — $ — $ 9,395 $ 33 Less than 12 Months 12 Months or More Total December 31, 2015 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Residential collateralized mortgage obligations $ 46,373 $ 475 $ — $ — $ 46,373 $ 475 Residential mortgage backed securities 27,012 268 — — 27,012 268 State and political subdivisions 12,283 118 — — 12,283 118 $ 85,668 $ 861 $ — $ — $ 85,668 $ 861 |
Loans and Leases (Tables)
Loans and Leases (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Summary of the Balances of Loans | A summary of the balances of loans follows (in thousands): September 30, 2016 December 31, 2015 Construction and Land Development $ 39,836 $ 22,082 Farmland and Agricultural Production 12,985 9,989 Residential 1-4 Family 167,388 135,864 Multifamily 31,880 34,272 Commercial Real Estate 419,958 381,098 Commercial and Industrial 274,889 179,623 Leases, net 739 — Consumer and other 9,286 9,417 956,961 772,345 Net deferred loan fees (6 ) (26 ) Allowance for loan losses (12,284 ) (11,741 ) $ 944,671 $ 760,578 |
Past Due Financing Receivables | The following tables present the risk category of loans evaluated by internal asset classification based on the most recent analysis performed and the contractual aging as of September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 Pass Special Mention Substandard Doubtful Total Construction and Land Development $ 36,240 $ 2,511 $ 1,085 $ — $ 39,836 Farmland and Agricultural Production 12,942 — 43 — 12,985 Multifamily 31,101 779 — — 31,880 Commercial Real Estate Retail 86,149 2,501 9,039 — 97,689 Office 50,322 — 3,526 — 53,848 Industrial and Warehouse 73,799 801 — — 74,600 Health Care 28,737 — — — 28,737 Other 156,209 4,353 4,514 8 165,084 Commercial and Industrial 264,091 1,759 7,470 1,569 274,889 Leases, net 739 — — — 739 Total $ 740,329 $ 12,704 $ 25,677 $ 1,577 $ 780,287 September 30, 2016 Performing Non-performing (*) Total Residential 1-4 Family $ 166,563 $ 825 $ 167,388 Consumer and other 9,286 — 9,286 Total $ 175,849 $ 825 $ 176,674 December 31, 2015 Pass Special Mention Substandard Doubtful Total Construction and Land Development $ 19,450 $ 2,632 $ — $ — $ 22,082 Farmland and Agricultural Production 9,989 — — — 9,989 Multifamily 33,598 674 — — 34,272 Commercial Real Estate Retail 87,665 — 7,905 — 95,570 Office 55,151 — — — 55,151 Industrial and Warehouse 64,699 837 — — 65,536 Health Care 29,985 — — — 29,985 Other 128,988 2,664 3,192 12 134,856 Commercial and Industrial 173,324 4,714 355 1,230 179,623 Total $ 602,849 $ 11,521 $ 11,452 $ 1,242 $ 627,064 December 31, 2015 Performing Non-performing* Total Residential 1-4 Family $ 135,814 $ 50 $ 135,864 Consumer and other 9,417 — 9,417 Total $ 145,231 $ 50 $ 145,281 (*) Non-performing loans include those on non-accrual status and those that are 90 days or more past due and still on accrual. The following table presents the contractual aging of the recorded investment in past due and non-accrual loans by class of loans as of September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 Current 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due and Still Accruing Total Accruing Loans Non-accrual Loans Total Loans Construction and Land Development $ 38,587 $ 164 $ — $ — $ 38,751 $ 1,085 $ 39,836 Farmland and Agricultural Production 12,985 — — — 12,985 — 12,985 Residential 1-4 Family 166,551 12 — — 166,563 825 167,388 Multifamily 31,880 — — — 31,880 — 31,880 Commercial Real Estate Retail 97,689 — — — 97,689 — 97,689 Office 53,848 — — — 53,848 — 53,848 Industrial and Warehouse 74,600 — — — 74,600 — 74,600 Health Care 28,737 — — — 28,737 — 28,737 Other 163,042 568 25 91 163,726 1,358 165,084 Commercial and Industrial 269,734 38 — — 269,772 5,117 274,889 Leases, net 739 — — — 739 — 739 Consumer and other 9,236 50 — — 9,286 — 9,286 Total $ 947,628 $ 832 $ 25 $ 91 $ 948,576 $ 8,385 $ 956,961 December 31, 2015 Current 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due and Still Accruing Total Accruing Loans Non-accrual Loans Total Loans Construction and Land Development $ 21,885 $ — $ 197 $ — $ 22,082 $ — $ 22,082 Farmland and Agricultural Production 9,989 — — — 9,989 — 9,989 Residential 1-4 Family 135,632 182 — — 135,814 50 135,864 Multifamily 34,272 — — — 34,272 — 34,272 Commercial Real Estate Retail 95,570 — — — 95,570 — 95,570 Office 55,151 — — — 55,151 — 55,151 Industrial and Warehouse 65,536 — — — 65,536 — 65,536 Health Care 29,985 — — — 29,985 — 29,985 Other 134,762 — — — 134,762 94 134,856 Commercial and Industrial 178,289 — — 67 178,356 1,267 179,623 Consumer and other 9,417 — — — 9,417 — 9,417 Total $ 770,488 $ 182 $ 197 $ 67 $ 770,934 $ 1,411 $ 772,345 |
Allowance for Loan Losses by Portfolio Segment | The following table provides additional detail of the activity in the allowance for loan losses, by portfolio segment, for the three months ended September 30, 2016 and 2015 (in thousands): September 30, 2016 Construction and Land Development Farmland and Agricultural Production Residential 1-4 Family Multifamily Commercial Real Estate Commercial and Industrial Leases Consumer and Other Total Allowance for loan losses: Beginning balance $ 424 $ 41 $ 1,277 $ 141 $ 4,988 $ 5,125 $ 2 $ 46 $ 12,044 Provision for loan losses 351 4 (9 ) 11 (361 ) 383 2 2 383 Loans charged-off — — (6 ) — — (330 ) — (4 ) (340 ) Recoveries of loans previously charged-off 18 — 1 — 5 172 — 1 197 Ending balance $ 793 $ 45 $ 1,263 $ 152 $ 4,632 $ 5,350 $ 4 $ 45 $ 12,284 September 30, 2015 Allowance for loan losses: Beginning balance $ 798 $ 27 $ 1,047 $ 95 $ 6,394 $ 3,895 $ — $ 164 $ 12,420 Provision for loan losses (135 ) (2 ) 69 (7 ) (760 ) 31 — (9 ) (813 ) Loans charged-off — — — — (444 ) (203 ) — (7 ) (654 ) Recoveries of loans previously charged-off 18 — 41 — 709 29 — 3 800 Ending balance $ 681 $ 25 $ 1,157 $ 88 $ 5,899 $ 3,752 $ — $ 151 $ 11,753 The following table provides additional detail of the activity in the allowance for loan losses, by portfolio segment, for the nine months ended September 30, 2016 and 2015 (in thousands): September 30, 2016 Construction and Land Development Farmland and Agricultural Production Residential 1-4 Family Multifamily Commercial Real Estate Commercial and Industrial Leases Consumer and Other Total Allowance for loan losses: Beginning balance $ 813 $ 43 $ 1,370 $ 141 $ 4,892 $ 4,286 $ — $ 196 $ 11,741 Provision for loan losses (67 ) 2 (123 ) 11 (279 ) 1,482 4 (147 ) 883 Loans charged-off — — (15 ) — — (1,017 ) — (7 ) (1,039 ) Recoveries of loans previously charged-off 47 — 31 — 19 599 — 3 699 Ending balance $ 793 $ 45 $ 1,263 $ 152 $ 4,632 $ 5,350 $ 4 $ 45 $ 12,284 September 30, 2015 Allowance for loan losses: Beginning balance $ 758 $ 459 $ 1,199 $ 67 $ 6,828 $ 4,296 $ — $ 298 $ 13,905 Provision for loan losses (130 ) (434 ) (59 ) 21 (1,108 ) 294 — (146 ) (1,562 ) Loans charged-off — — (195 ) — (548 ) (973 ) — (10 ) (1,726 ) Recoveries of loans previously charged-off 53 — 212 — 727 135 — 9 1,136 Ending balance $ 681 $ 25 $ 1,157 $ 88 $ 5,899 $ 3,752 $ — $ 151 $ 11,753 The following table presents the balance in the allowance for loan losses and the unpaid principal balance of loans by portfolio segment and based on impairment method as of September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 Construction and Land Development Farmland and Agricultural Production Residential 1-4 Family Multifamily Commercial Real Estate Commercial and Industrial Leases Consumer and other Total Period-ended amount allocated to: Individually evaluated for impairment $ — $ — $ 30 $ — $ — $ 937 $ — $ — $ 967 Collectively evaluated for impairment 793 45 1,233 152 4,632 4,413 4 45 11,317 Ending balance $ 793 $ 45 $ 1,263 $ 152 $ 4,632 $ 5,350 $ 4 $ 45 $ 12,284 Loans: Individually evaluated for impairment $ 1,084 $ — $ 2,015 $ — $ 7,055 $ 7,562 $ — $ — $ 17,716 Collectively evaluated for impairment 38,752 12,985 165,373 31,880 412,903 267,327 739 9,286 939,245 Ending balance $ 39,836 $ 12,985 $ 167,388 $ 31,880 $ 419,958 $ 274,889 $ 739 $ 9,286 $ 956,961 December 31, 2015 Period-ended amount allocated to: Individually evaluated for impairment $ — $ — $ 30 $ — $ — $ 441 $ — $ — $ 471 Collectively evaluated for impairment 813 43 1,340 141 4,892 3,845 — 196 11,270 Ending balance $ 813 $ 43 $ 1,370 $ 141 $ 4,892 $ 4,286 $ — $ 196 $ 11,741 Loans: Individually evaluated for impairment $ — $ — $ 1,661 $ — $ 4,381 $ 3,777 $ — $ — $ 9,819 Collectively evaluated for impairment 22,082 9,989 134,203 34,272 376,717 175,846 — 9,417 762,526 Ending balance $ 22,082 $ 9,989 $ 135,864 $ 34,272 $ 381,098 $ 179,623 $ — $ 9,417 $ 772,345 |
Impaired Financing Receivables | The following tables present additional detail regarding impaired loans, segregated by class, as of and for the three and nine months ended September 30, 2016 and year ended December 31, 2015 (dollars in thousands). The unpaid principal balance represents the recorded balance prior to any partial charge-offs. The recorded investment represents customer balances net of any partial charge-offs recognized on the loans. The interest income recognized column represents all interest income reported after the loan became impaired. September 30, 2016 Three Months Ended Nine Months Ended Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Construction and Land Development $ 1,085 $ 1,085 $ — $ 543 $ — $ 271 $ — Farmland and Agricultural Production — — — — — — — Residential 1-4 Family 1,593 1,553 — 1,612 15 1,391 30 Multifamily — — — — — — — Commercial Real Estate Retail 3,288 3,288 — 1,644 20 822 81 Office — — — — — 165 — Industrial and Warehouse — — — — — — — Health Care — — — — — — Other 3,831 3,767 — 3,786 14 3,823 43 Commercial and Industrial 5,937 4,888 — 4,090 — 3,652 — Consumer and other — — — — — — — With an allowance recorded: Construction and Land Development — — — — — — — Farmland and Agricultural Production — — — — — — — Residential 1-4 Family 461 461 30 462 6 465 17 Multifamily — — — — — — — Commercial Real Estate Retail — — — — — — — Office — — — — — — — Industrial and Warehouse — — — — — — — Health Care — — — — — — — Other — — — — — — — Commercial and Industrial 2,874 2,674 937 1,926 — 1,434 — Consumer and other — — — — — — — Total $ 19,069 $ 17,716 $ 967 $ 14,063 $ 55 $ 12,023 $ 171 December 31, 2015 Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Average Recorded Investment Interest Income Recognized With no related allowance recorded: Construction and Land Development $ — $ — $ — $ — $ — Farmland and Agricultural Production — — — — — Residential 1-4 Family 1,232 1,193 — 1,280 61 Multifamily — — — — — Commercial Real Estate Retail — — — — — Office 494 494 — 502 26 Industrial and Warehouse — — — 1,441 — Health Care — — — — — Other 3,952 3,887 — 5,015 127 Commercial and Industrial 3,331 3,131 — 3,640 130 Consumer and other — — — 4 — With an allowance recorded: Construction and Land Development — — — — — Farmland and Agricultural Production — — — — — Residential 1-4 Family 468 468 30 473 23 Multifamily — — — — — Commercial Real Estate Retail — — — — — Office — — — — — Industrial and Warehouse — — — — — Health Care — — — — — Other — — — 64 — Commercial and Industrial 1,109 646 441 491 — Consumer and other — — — — — Total $ 10,586 $ 9,819 $ 471 $ 12,910 $ 367 |
Roll Forward Activity of Troubled Debt Restructuring Loans | The following presents a rollfoward activity of troubled debt restructurings (in thousands, except number of loans): Nine months ended September 30, 2016 Recorded Investment Number of Loans Balance, beginning $ 2,832 6 Additions to troubled debt restructurings 2,006 1 Removal of troubled debt restructurings (519 ) (2 ) Charge-off related to troubled debt restructurings — — Transfers to other real estate owned — — Repayments and other reductions (55 ) — Balance, ending $ 4,264 5 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Deposits [Abstract] | |
Composition of Interest-bearing Deposits | The composition of interest-bearing deposits was as follows (in thousands): September 30, 2016 December 31, 2015 NOW and money market accounts $ 418,910 $ 336,197 Savings 61,399 36,207 Time deposit certificates of $250,000 or more 111,384 69,961 Time deposit certificates of $100,000 to $250,000 123,917 127,091 Other time deposit certificates 103,379 100,472 $ 818,989 $ 669,928 |
Composition of Brokered Deposits | The composition of brokered deposits included in deposits was as follows (in thousands): September 30, 2016 December 31, 2015 NOW and money market accounts $ 35,001 $ 35,271 Time deposit certificates 42,842 11,874 $ 77,843 $ 47,145 |
Other Borrowed Funds (Tables)
Other Borrowed Funds (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Other Borrowed Funds | The composition of other borrowed funds was as follows (in thousands): September 30, 2016 December 31, 2015 Securities sold under agreements to repurchase $ 24,561 $ 25,069 Federal Home Loan Bank Advances Maturity dates, fixed interest rate Matures January 6, 2016, 0.28% — 11,000 Matures January 4, 2016, 0.16% — 5,000 Matures October 13, 2016, 0.32% 9,000 — Matures November 4, 2016, 0.40% 6,000 — Total Federal Home Loan Bank Advances 15,000 16,000 Secured borrowings 7,018 11,946 $ 46,579 $ 53,015 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense Recognized | Income tax expense recognized is as follows (in thousands): Nine months ended September 30, 2016 2015 Current $ 190 $ 108 Deferred 2,776 3,419 $ 2,966 $ 3,527 |
Schedule of Effective Income Tax Rate Reconciliation | The table below presents a reconciliation of the amount of income taxes determined by applying the U.S. federal income tax rate to pretax income (in thousands): Nine months ended September 30, 2016 2015 Federal income tax at statutory rate $ 3,987 $ 3,648 Increase (decrease) due to: Federal tax exempt (577 ) (419 ) State income tax, net of federal benefit 583 533 Benefit of income taxed at lower rate (114 ) (104 ) Tax exempt income (11 ) (24 ) Cash surrender value of life insurance (155 ) (33 ) Bargain purchase gain (652 ) — Other (95 ) (74 ) $ 2,966 $ 3,527 |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities consist of (in thousands): September 30, 2016 December 31, 2015 Deferred tax assets: Allowance for loan losses $ 4,699 $ 4,169 Merger expenses 186 140 Organization expenses 205 226 Net operating losses 311 3,774 Contribution carryforward 9 5 Restricted stock 222 — Non-qualified stock options 715 644 Foreclosed assets 282 315 Tax credits 396 334 Other 203 412 7,228 10,019 Deferred tax liabilities: Depreciation (1,138 ) (186 ) Core deposit intangible (305 ) — Unrealized gains on securities available for sale (2,132 ) (642 ) (3,575 ) (828 ) Net deferred tax asset $ 3,653 $ 9,191 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summarized Data Concerning Stock Options | The following table summarizes data concerning stock options (aggregate intrinsic value in thousands): Nine months ended, Year ended, September 30, 2016 December 31, 2015 Shares Weighted Average Exercise Price Aggregate Intrinsic Value Shares Weighted Average Exercise Price Aggregate Intrinsic Value Outstanding at beginning of year 1,305,504 $ 6.69 $ 1,308 1,089,404 $ 7.00 $ — Granted 343,950 7.73 591 217,500 5.20 444 Exercised (43,720 ) 7.08 901 — — — Canceled — — — — — — Expired — — — — — — Forfeited — — — (1,400 ) 8.25 — Outstanding at end of period 1,605,734 $ 6.91 $ 4,157 1,305,504 $ 6.69 $ 1,308 Exercisable at end of period 1,243,234 $ 7.05 $ 4,232 1,088,004 $ 6.99 $ 864 |
Information Pertaining to Options Outstanding | Information pertaining to options outstanding at September 30, 2016 is as follows: Exercise Prices Number Outstanding Weighted Average Remaining Life (yrs) Number Exercisable $5.00 364,376 2.79 364,376 $5.20 217,500 8.26 72,500 $5.53 6,000 3.59 6,000 $6.25 25,000 4.03 25,000 $7.24 217,500 9.26 — $7.50 405,380 0.82 405,380 $8.00 4,000 2.96 4,000 $8.58 126,450 9.76 126,450 $9.25 239,528 1.63 239,528 1,605,734 1,243,234 |
Schedule of Nonvested Restricted Stock Units Activity | The following is a summary of nonvested restricted stock units: September 30, 2016 Number of Shares Weighted Average Grant Date Fair Value Nonvested shares, at beginning of year 25,000 $ 5.14 Granted — — Vested (11,666 ) 4.73 Canceled — — Forfeited — — Nonvested shares, end of period 13,334 $ 5.50 |
Concentrations, Commitments a33
Concentrations, Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Commitments | A summary of the Company’s commitments is as follows (in thousands): September 30, 2016 December 31, 2015 Commitments to extend credit $ 269,551 $ 179,517 Standby letters of credit 10,492 10,353 Performance letters of credit 2,357 1,088 $ 282,400 $ 190,958 |
Capital and Regulatory Matters
Capital and Regulatory Matters (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Regulatory Capital Requirements [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | Management believes, as of September 30, 2016 and December 31, 2015 , the Company and the Bank met all capital adequacy requirements to which they were subject. As of September 30, 2016 September 30, 2016 December 31, 2015 For Capital Adequacy Purposes With Capital Conservation buffer Regulatory Minimum To Be Well Capitalized under Prompt Corrective Action Provisions Ratio Amount Ratio Amount Ratio Amount Ratio Amount Bank capital ratios: Total capital to risk-weighted assets 13.69 % 140,047 15.79 % 133,247 8.625 % 88,215 10.00 % 102,279 Tier 1 capital to risk weighted assets 12.49 % 127,763 14.54 % 122,664 6.625 % 67,760 8.00 % 81,823 Tier 1 common equity to risk-weighted assets 12.49 % 127,763 14.54 % 122,664 5.125 % 52,418 6.50 % 66,481 Tier 1 leverage to average assets 10.52 % 127,763 11.71 % 122,664 4.00 % 48,563 5.00 % 60,704 Company capital ratios: Total capital to risk-weighted assets 13.52 % 138,642 14.69 % 124,159 8.625 % 88,415 N/A N/A Tier 1 capital to risk weighted assets 10.83 % 111,058 11.62 % 98,276 6.625 % 67,913 N/A N/A Tier 1 common equity to risk-weighted assets 10.83 % 111,058 11.62 % 98,276 5.125 % 52,536 N/A N/A Tier 1 leverage to average assets 9.15 % 111,058 9.36 % 98,276 4.00 % 48,593 N/A N/A |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of September 30, 2016 and December 31, 2015 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (in thousands): September 30, 2016 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial Assets Securities Available for Sale: Residential collateralized mortgage obligations $ 57,091 $ — $ 57,091 $ — Residential mortgage backed securities 26,408 — 26,408 — State and political subdivisions 104,563 — 103,059 1,504 Derivative financial instruments 73 — 73 — Financial Liabilities Derivative financial instruments 73 — 73 — December 31, 2015 Financial Assets Securities Available for Sale: Government sponsored enterprises $ 16,409 $ — $ 16,409 $ — Residential collateralized mortgage obligations 62,364 — 62,364 — Residential mortgage backed securities 28,291 — 28,291 — State and political subdivisions 98,540 — 97,036 1,504 Derivative financial instruments 95 — 95 — Financial Liabilities Derivative financial instruments 95 — 95 — |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables present additional information about assets and liabilities measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs to determine fair value (in thousands): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) State and political subdivisions Beginning balance, December 31, 2015 $ 1,504 Total gains or losses (realized/unrealized) included in other comprehensive income Included in earnings — Purchases — Paydowns and maturities — Transfers in and/or out of Level 3 — Ending balance, September 30, 2016 $ 1,504 Beginning balance, December 31, 2014 $ 1,514 Total gains or losses (realized/unrealized) included in other comprehensive income (9 ) Included in earnings — Purchases — Paydowns and maturities — Transfers in and/or out of Level 3 — Ending balance, September 30, 2015 $ 1,505 |
Fair Value Measurements, Nonrecurring | Assets measured at fair value on a nonrecurring basis are set forth below: September 30, 2016 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial Assets Mortgage loans held for sale $ 1,331 $ — $ — $ 1,331 Impaired loans 16,749 — — 16,749 Foreclosed assets 725 — — 725 December 31, 2015 Financial Assets Mortgage loans held for sale $ 400 $ — $ — $ 400 Impaired loans 9,348 — — 9,348 Foreclosed assets 5,487 — — 5,487 The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis for which the Company has utilized Level 3 inputs to determine fair value: Quantitative Information about Level 3 Fair Value Measurements Fair Value Estimate Valuation Techniques Unobservable Input Discount Range Assets September 30, 2016 Mortgage loans held for sale $ 1,331 Secondary market pricing Selling costs — Impaired loans 16,749 Appraisal of Collateral Appraisal adjustments Selling costs 10% to 25% Foreclosed assets 725 Appraisal of Collateral Selling costs 10.00% December 31, 2015 Mortgage loans held for sale 400 Secondary market pricing Selling costs — Impaired loans 9,348 Appraisal of Collateral Appraisal adjustments Selling costs 10% to 25% Foreclosed assets 5,487 Appraisal of Collateral Selling costs 10.00% |
Fair Value, by Balance Sheet Grouping | The estimated fair values of the Company’s financial instruments are as follows as of September 30, 2016 (in thousands): Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets: Cash and due from banks $ 21,622 $ 21,622 $ 21,622 $ — $ — Federal funds sold 550 550 550 — — Interest-bearing deposits in banks 33,349 33,349 33,349 — — Securities available for sale 188,062 188,062 — 186,558 1,504 Nonmarketable equity securities 3,959 3,959 — — 3,959 Mortgage loans held for sale 1,331 1,331 — — 1,331 Loans, net 944,671 930,266 — — 930,266 Accrued interest receivable 3,255 3,255 3,255 — — Derivative financial instruments 73 73 — 73 — Financial liabilities: Non-interest bearing deposits 246,262 246,262 246,262 — — Interest-bearing deposits 818,989 806,285 475,617 — 330,668 Other borrowed funds 46,579 46,274 46,274 — — Subordinated debt 15,300 16,228 — — 16,228 Accrued interest payable 393 393 393 — — Derivative financial instruments 73 73 — 73 — The estimated fair values of the Company’s financial instruments are as follows as of December 31, 2015 (in thousands): Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets: Cash and due from banks $ 10,699 $ 10,699 $ 10,699 $ — $ — Interest-bearing deposits in banks 7,406 7,406 7,406 — — Securities available for sale 205,604 205,604 — 204,100 1,504 Nonmarketable equity securities 1,367 1,367 — — 1,367 Mortgage loans held for sale 400 400 — — 400 Loans, net 760,578 760,159 — — 760,159 Accrued interest receivable 3,106 3,106 3,106 — — Derivative financial instruments 95 95 — 95 — Financial liabilities: Non-interest bearing deposits 196,063 196,063 196,063 — — Interest-bearing deposits 669,928 663,174 372,404 — 290,770 Other borrowed funds 53,015 53,015 53,015 — — Subordinated debt 15,300 15,656 — — 15,656 Accrued interest payable 545 545 545 — — Derivative financial instruments 95 95 — 95 — |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Net book value of core deposit intangible | $ 767,000 | $ 767,000 | $ 0 |
Core Deposits | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 84 months | ||
Impairment charge | $ 0 |
Acquisition - Narrative (Detail
Acquisition - Narrative (Details) - Mazon State Bank - USD ($) | Jul. 01, 2016 | Sep. 30, 2016 | Sep. 30, 2016 |
Business Acquisition [Line Items] | |||
Purchase price | $ 8,500,000 | ||
Merger related costs | $ 643,000 | $ 1,200,000 |
Acquisition - Fair Value of the
Acquisition - Fair Value of the Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jul. 01, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | |||||
Bargain purchase gain | $ 1,920 | $ 0 | $ 1,920 | $ 0 | |
Provision for loan losses | $ 883 | $ (1,562) | |||
Mazon State Bank | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | |||||
Cash and due from banks | $ 5,754 | ||||
Federal funds sold | 550 | ||||
Securities available for sale | 39,177 | ||||
Nonmarketable equity securities | 134 | ||||
Loans, net of allowance of $243 | 32,019 | ||||
Fair value adjustments, loans | (362) | ||||
Premises and equipment, net | 4,193 | ||||
Fair value adjustments, Premises and Equipment | 3,294 | ||||
Foreclosed assets | 9 | ||||
Cash surrender value of life insurance | 2,317 | ||||
Other assets | 1,363 | ||||
Fair value adjustments, Other assets | 823 | ||||
Total assets | 85,516 | ||||
Fair value adjustments, assets | 3,755 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | |||||
Deposits | 72,991 | ||||
Deferred tax liability, net | 1,272 | ||||
Fair value adjustments, Deferred tax liability, net | 1,272 | ||||
Other liabilities | 833 | ||||
Total liabilities | 75,096 | ||||
Fair value adjustments, liabilities | 1,223 | ||||
Excess of assets acquired over liabilities assumed | 10,420 | ||||
Fair value adjustments, Excess of assets acquired over liabilities assumed | 2,532 | ||||
Less: Purchase price paid in cash | 8,500 | ||||
Bargain purchase gain | 1,920 | ||||
Provision for loan losses | 243 | ||||
Mazon State Bank | Mazon State Bank | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | |||||
Cash and due from banks | 5,754 | ||||
Federal funds sold | 550 | ||||
Securities available for sale | 39,177 | ||||
Nonmarketable equity securities | 134 | ||||
Loans, net of allowance of $243 | 32,381 | ||||
Premises and equipment, net | 899 | ||||
Foreclosed assets | 9 | ||||
Cash surrender value of life insurance | 2,317 | ||||
Other assets | 540 | ||||
Total assets | 81,761 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | |||||
Deposits | 73,040 | ||||
Deferred tax liability, net | 0 | ||||
Other liabilities | 833 | ||||
Total liabilities | 73,873 | ||||
Excess of assets acquired over liabilities assumed | $ 7,888 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 4,135 | $ 2,947 | $ 8,427 | $ 6,898 |
Weighted average common shares outstanding for basic earnings per common share (in shares) | 17,189,113 | 16,993,822 | 17,165,808 | 16,910,441 |
Dilutive effect of stock-based compensation (in shares) | 376,554 | 167,961 | 326,595 | 138,526 |
Weighted average shares outstanding for diluted earnings per common share (in shares) | 17,565,667 | 17,161,783 | 17,492,403 | 17,048,967 |
Basic income per common share (in dollars per share) | $ 0.24 | $ 0.17 | $ 0.49 | $ 0.41 |
Diluted income per common share (in dollars per share) | $ 0.24 | $ 0.17 | $ 0.48 | $ 0.40 |
Securities Available for Sale40
Securities Available for Sale (Schedule of Amortized Cost and Fair Value of Securities Available for Sale) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
Amortized Cost | $ 182,596 | $ 203,959 |
Gross Unrealized Gains | 5,499 | 2,506 |
Gross Unrealized Losses | 33 | 861 |
Fair Value | 188,062 | 205,604 |
Government sponsored enterprises | ||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
Amortized Cost | 16,284 | |
Gross Unrealized Gains | 125 | |
Gross Unrealized Losses | 0 | |
Fair Value | 16,409 | |
Residential collateralized mortgage obligations | ||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
Amortized Cost | 55,620 | 62,701 |
Gross Unrealized Gains | 1,471 | 138 |
Gross Unrealized Losses | 0 | 475 |
Fair Value | 57,091 | 62,364 |
Residential mortgage backed securities | ||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
Amortized Cost | 26,095 | 28,494 |
Gross Unrealized Gains | 313 | 65 |
Gross Unrealized Losses | 0 | 268 |
Fair Value | 26,408 | 28,291 |
State and political subdivisions | ||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
Amortized Cost | 100,881 | 96,480 |
Gross Unrealized Gains | 3,715 | 2,178 |
Gross Unrealized Losses | 33 | 118 |
Fair Value | $ 104,563 | $ 98,540 |
Securities Available for Sale41
Securities Available for Sale (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |||||
Securities pledged as collateral | $ 101,200 | $ 101,200 | $ 82,200 | ||
Gain on sale of securities | $ 14 | $ 251 | 617 | $ 272 | |
Unrealized losses | $ 33 | $ 861 |
Securities Available for Sale42
Securities Available for Sale (Securities Segregated by Maturity Dates) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Amortized Cost | ||
Within 1 year | $ 4,137 | |
Over 1 year through 5 years | 25,467 | |
Over 5 years through 10 years | 32,839 | |
Over 10 years | 38,438 | |
Residential collateralized mortgage obligations and mortgage backed securities | 81,715 | |
Amortized Cost | 182,596 | $ 203,959 |
Fair Value | ||
Within 1 year | 4,146 | |
Over 1 year through 5 years | 25,689 | |
Over 5 years through 10 years | 34,054 | |
Over 10 years | 40,674 | |
Residential collateralized mortgage obligations and mortgage backed securities | 83,499 | |
Fair Value | $ 188,062 | $ 205,604 |
Securities Available for Sale43
Securities Available for Sale (Unrealized Losses and Fair Value Aggregated by Investment Category) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value, less than 12 months | $ 9,395 | $ 85,668 |
Unrealized losses, less than 12 months | 33 | 861 |
Fair value, 12 months or more | 0 | 0 |
Unrealized losses, 12 months or more | 0 | 0 |
Fair value, total | 9,395 | 85,668 |
Unrealized losses, total | 33 | 861 |
Residential collateralized mortgage obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value, less than 12 months | 46,373 | |
Unrealized losses, less than 12 months | 475 | |
Fair value, 12 months or more | 0 | |
Unrealized losses, 12 months or more | 0 | |
Fair value, total | 46,373 | |
Unrealized losses, total | 475 | |
Residential mortgage backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value, less than 12 months | 27,012 | |
Unrealized losses, less than 12 months | 268 | |
Fair value, 12 months or more | 0 | |
Unrealized losses, 12 months or more | 0 | |
Fair value, total | 27,012 | |
Unrealized losses, total | 268 | |
State and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value, less than 12 months | 9,395 | 12,283 |
Unrealized losses, less than 12 months | 33 | 118 |
Fair value, 12 months or more | 0 | 0 |
Unrealized losses, 12 months or more | 0 | 0 |
Fair value, total | 9,395 | 12,283 |
Unrealized losses, total | $ 33 | $ 118 |
Loans and Leases (Balances) (De
Loans and Leases (Balances) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 956,961 | $ 772,345 |
Net deferred loan fees | (6) | (26) |
Allowance for loan losses | (12,284) | (11,741) |
Loans, net | 944,671 | 760,578 |
Construction and Land Development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 39,836 | 22,082 |
Farmland and Agricultural Production | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 12,985 | 9,989 |
Residential 1-4 Family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 167,388 | 135,864 |
Multifamily | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 31,880 | 34,272 |
Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 419,958 | 381,098 |
Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 274,889 | 179,623 |
Leases, net | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 739 | 0 |
Consumer and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 9,286 | $ 9,417 |
Loans and Leases (Contractual A
Loans and Leases (Contractual Aging of the Recorded Investment in Past Due and Nonaccrual Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | $ 948,576 | $ 770,934 |
Non-accrual Loans | 8,385 | 1,411 |
Total Loans | 956,961 | 772,345 |
Construction and Land Development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 38,751 | 22,082 |
Non-accrual Loans | 1,085 | 0 |
Total Loans | 39,836 | 22,082 |
Farmland and Agricultural Production | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 12,985 | 9,989 |
Non-accrual Loans | 0 | 0 |
Total Loans | 12,985 | 9,989 |
Residential 1-4 Family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 166,563 | 135,814 |
Non-accrual Loans | 825 | 50 |
Total Loans | 167,388 | 135,864 |
Multifamily | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 31,880 | 34,272 |
Non-accrual Loans | 0 | 0 |
Total Loans | 31,880 | 34,272 |
Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 419,958 | 381,098 |
Commercial Real Estate | Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 97,689 | 95,570 |
Non-accrual Loans | 0 | 0 |
Total Loans | 97,689 | 95,570 |
Commercial Real Estate | Office | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 53,848 | 55,151 |
Non-accrual Loans | 0 | 0 |
Total Loans | 53,848 | 55,151 |
Commercial Real Estate | Industrial and Warehouse | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 74,600 | 65,536 |
Non-accrual Loans | 0 | 0 |
Total Loans | 74,600 | 65,536 |
Commercial Real Estate | Health Care | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 28,737 | 29,985 |
Non-accrual Loans | 0 | 0 |
Total Loans | 28,737 | 29,985 |
Commercial Real Estate | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 163,726 | 134,762 |
Non-accrual Loans | 1,358 | 94 |
Total Loans | 165,084 | 134,856 |
Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 269,772 | 178,356 |
Non-accrual Loans | 5,117 | 1,267 |
Total Loans | 274,889 | 179,623 |
Leases, net | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 739 | |
Non-accrual Loans | 0 | |
Total Loans | 739 | 0 |
Consumer and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 9,286 | 9,417 |
Non-accrual Loans | 0 | 0 |
Total Loans | 9,286 | 9,417 |
Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 947,628 | 770,488 |
Current | Construction and Land Development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 38,587 | 21,885 |
Current | Farmland and Agricultural Production | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 12,985 | 9,989 |
Current | Residential 1-4 Family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 166,551 | 135,632 |
Current | Multifamily | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 31,880 | 34,272 |
Current | Commercial Real Estate | Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 97,689 | 95,570 |
Current | Commercial Real Estate | Office | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 53,848 | 55,151 |
Current | Commercial Real Estate | Industrial and Warehouse | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 74,600 | 65,536 |
Current | Commercial Real Estate | Health Care | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 28,737 | 29,985 |
Current | Commercial Real Estate | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 163,042 | 134,762 |
Current | Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 269,734 | 178,289 |
Current | Leases, net | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 739 | |
Current | Consumer and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 9,236 | 9,417 |
30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 832 | 182 |
30-59 Days Past Due | Construction and Land Development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 164 | 0 |
30-59 Days Past Due | Farmland and Agricultural Production | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 0 | 0 |
30-59 Days Past Due | Residential 1-4 Family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 12 | 182 |
30-59 Days Past Due | Multifamily | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 0 | 0 |
30-59 Days Past Due | Commercial Real Estate | Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 0 | 0 |
30-59 Days Past Due | Commercial Real Estate | Office | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 0 | 0 |
30-59 Days Past Due | Commercial Real Estate | Industrial and Warehouse | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 0 | 0 |
30-59 Days Past Due | Commercial Real Estate | Health Care | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 0 | 0 |
30-59 Days Past Due | Commercial Real Estate | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 568 | 0 |
30-59 Days Past Due | Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 38 | 0 |
30-59 Days Past Due | Leases, net | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 0 | |
30-59 Days Past Due | Consumer and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 50 | 0 |
60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 25 | 197 |
60-89 Days Past Due | Construction and Land Development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 0 | 197 |
60-89 Days Past Due | Farmland and Agricultural Production | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 0 | 0 |
60-89 Days Past Due | Residential 1-4 Family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 0 | 0 |
60-89 Days Past Due | Multifamily | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 0 | 0 |
60-89 Days Past Due | Commercial Real Estate | Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 0 | 0 |
60-89 Days Past Due | Commercial Real Estate | Office | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 0 | 0 |
60-89 Days Past Due | Commercial Real Estate | Industrial and Warehouse | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 0 | 0 |
60-89 Days Past Due | Commercial Real Estate | Health Care | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 0 | 0 |
60-89 Days Past Due | Commercial Real Estate | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 25 | 0 |
60-89 Days Past Due | Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 0 | 0 |
60-89 Days Past Due | Leases, net | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 0 | |
60-89 Days Past Due | Consumer and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 0 | 0 |
90 Days Past Due and Still Accruing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 91 | 67 |
90 Days Past Due and Still Accruing | Construction and Land Development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 0 | 0 |
90 Days Past Due and Still Accruing | Farmland and Agricultural Production | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 0 | 0 |
90 Days Past Due and Still Accruing | Residential 1-4 Family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 0 | 0 |
90 Days Past Due and Still Accruing | Multifamily | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 0 | 0 |
90 Days Past Due and Still Accruing | Commercial Real Estate | Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 0 | 0 |
90 Days Past Due and Still Accruing | Commercial Real Estate | Office | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 0 | 0 |
90 Days Past Due and Still Accruing | Commercial Real Estate | Industrial and Warehouse | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 0 | 0 |
90 Days Past Due and Still Accruing | Commercial Real Estate | Health Care | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 0 | 0 |
90 Days Past Due and Still Accruing | Commercial Real Estate | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 91 | 0 |
90 Days Past Due and Still Accruing | Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 0 | 67 |
90 Days Past Due and Still Accruing | Leases, net | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 0 | |
90 Days Past Due and Still Accruing | Consumer and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | $ 0 | $ 0 |
Loans and Leases (Risk Category
Loans and Leases (Risk Category of Loans Evaluated by Internal Asset Classification) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | $ 780,287 | $ 627,064 |
Financing receivable residential, consumer and other | 176,674 | 145,281 |
Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 740,329 | 602,849 |
Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 12,704 | 11,521 |
Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 25,677 | 11,452 |
Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 1,577 | 1,242 |
Performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable residential, consumer and other | 175,849 | 145,231 |
Non-performing() | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable residential, consumer and other | 825 | 50 |
Construction and Land Development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 39,836 | 22,082 |
Construction and Land Development | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 36,240 | 19,450 |
Construction and Land Development | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 2,511 | 2,632 |
Construction and Land Development | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 1,085 | 0 |
Construction and Land Development | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 0 | 0 |
Farmland and Agricultural Production | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 12,985 | 9,989 |
Farmland and Agricultural Production | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 12,942 | 9,989 |
Farmland and Agricultural Production | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 0 | 0 |
Farmland and Agricultural Production | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 43 | 0 |
Farmland and Agricultural Production | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 0 | 0 |
Multifamily | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 31,880 | 34,272 |
Multifamily | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 31,101 | 33,598 |
Multifamily | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 779 | 674 |
Multifamily | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 0 | 0 |
Multifamily | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 0 | 0 |
Commercial Real Estate | Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 97,689 | 95,570 |
Commercial Real Estate | Office | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 53,848 | 55,151 |
Commercial Real Estate | Industrial and Warehouse | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 74,600 | 65,536 |
Commercial Real Estate | Health Care | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 28,737 | 29,985 |
Commercial Real Estate | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 165,084 | 134,856 |
Commercial Real Estate | Pass | Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 86,149 | 87,665 |
Commercial Real Estate | Pass | Office | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 50,322 | 55,151 |
Commercial Real Estate | Pass | Industrial and Warehouse | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 73,799 | 64,699 |
Commercial Real Estate | Pass | Health Care | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 28,737 | 29,985 |
Commercial Real Estate | Pass | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 156,209 | 128,988 |
Commercial Real Estate | Special Mention | Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 2,501 | 0 |
Commercial Real Estate | Special Mention | Office | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 0 | 0 |
Commercial Real Estate | Special Mention | Industrial and Warehouse | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 801 | 837 |
Commercial Real Estate | Special Mention | Health Care | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 0 | 0 |
Commercial Real Estate | Special Mention | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 4,353 | 2,664 |
Commercial Real Estate | Substandard | Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 9,039 | 7,905 |
Commercial Real Estate | Substandard | Office | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 3,526 | 0 |
Commercial Real Estate | Substandard | Industrial and Warehouse | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 0 | 0 |
Commercial Real Estate | Substandard | Health Care | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 0 | 0 |
Commercial Real Estate | Substandard | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 4,514 | 3,192 |
Commercial Real Estate | Doubtful | Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 0 | 0 |
Commercial Real Estate | Doubtful | Office | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 0 | 0 |
Commercial Real Estate | Doubtful | Industrial and Warehouse | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 0 | 0 |
Commercial Real Estate | Doubtful | Health Care | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 0 | 0 |
Commercial Real Estate | Doubtful | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 8 | 12 |
Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 274,889 | 179,623 |
Commercial and Industrial | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 264,091 | 173,324 |
Commercial and Industrial | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 1,759 | 4,714 |
Commercial and Industrial | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 7,470 | 355 |
Commercial and Industrial | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 1,569 | 1,230 |
Residential 1-4 Family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 167,388 | 135,864 |
Residential 1-4 Family | Performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 166,563 | 135,814 |
Residential 1-4 Family | Non-performing() | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 825 | 50 |
Leases, net | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 739 | |
Leases, net | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 739 | |
Leases, net | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 0 | |
Leases, net | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 0 | |
Leases, net | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 0 | |
Consumer and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 9,286 | 9,417 |
Consumer and other | Performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 9,286 | 9,417 |
Consumer and other | Non-performing() | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | $ 0 | $ 0 |
Loans and Leases (Activity in t
Loans and Leases (Activity in the Allowance for Loan Losses, by Portfolio Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | $ 12,044 | $ 12,420 | $ 11,741 | $ 13,905 |
Provision for loan losses | 383 | (813) | 883 | (1,562) |
Loans charged-off | (340) | (654) | (1,039) | (1,726) |
Recoveries of loans previously charged-off | 197 | 800 | 699 | 1,136 |
Ending balance | 12,284 | 11,753 | 12,284 | 11,753 |
Leases, net | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 2 | 0 | 0 | 0 |
Provision for loan losses | 2 | 0 | 4 | 0 |
Loans charged-off | 0 | 0 | 0 | 0 |
Recoveries of loans previously charged-off | 0 | 0 | 0 | 0 |
Ending balance | 4 | 0 | 4 | 0 |
Consumer and other | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 46 | 164 | 196 | 298 |
Provision for loan losses | 2 | (9) | (147) | (146) |
Loans charged-off | (4) | (7) | (7) | (10) |
Recoveries of loans previously charged-off | 1 | 3 | 3 | 9 |
Ending balance | 45 | 151 | 45 | 151 |
Construction and Land Development | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 424 | 798 | 813 | 758 |
Provision for loan losses | 351 | (135) | (67) | (130) |
Loans charged-off | 0 | 0 | 0 | 0 |
Recoveries of loans previously charged-off | 18 | 18 | 47 | 53 |
Ending balance | 793 | 681 | 793 | 681 |
Farmland and Agricultural Production | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 41 | 27 | 43 | 459 |
Provision for loan losses | 4 | (2) | 2 | (434) |
Loans charged-off | 0 | 0 | 0 | 0 |
Recoveries of loans previously charged-off | 0 | 0 | 0 | 0 |
Ending balance | 45 | 25 | 45 | 25 |
Residential 1-4 Family | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 1,277 | 1,047 | 1,370 | 1,199 |
Provision for loan losses | (9) | 69 | (123) | (59) |
Loans charged-off | (6) | 0 | (15) | (195) |
Recoveries of loans previously charged-off | 1 | 41 | 31 | 212 |
Ending balance | 1,263 | 1,157 | 1,263 | 1,157 |
Multifamily | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 141 | 95 | 141 | 67 |
Provision for loan losses | 11 | (7) | 11 | 21 |
Loans charged-off | 0 | 0 | 0 | 0 |
Recoveries of loans previously charged-off | 0 | 0 | 0 | 0 |
Ending balance | 152 | 88 | 152 | 88 |
Commercial Real Estate | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 4,988 | 6,394 | 4,892 | 6,828 |
Provision for loan losses | (361) | (760) | (279) | (1,108) |
Loans charged-off | 0 | (444) | 0 | (548) |
Recoveries of loans previously charged-off | 5 | 709 | 19 | 727 |
Ending balance | 4,632 | 5,899 | 4,632 | 5,899 |
Commercial and Industrial | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 5,125 | 3,895 | 4,286 | 4,296 |
Provision for loan losses | 383 | 31 | 1,482 | 294 |
Loans charged-off | (330) | (203) | (1,017) | (973) |
Recoveries of loans previously charged-off | 172 | 29 | 599 | 135 |
Ending balance | $ 5,350 | $ 3,752 | $ 5,350 | $ 3,752 |
Loans and Leases (Balance in th
Loans and Leases (Balance in the Allowance for Loan Losses and the Unpaid Principal Balance of Loans by Portfolio Segment) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | $ 967 | $ 471 | ||||
Collectively evaluated for impairment | 11,317 | 11,270 | ||||
Ending balance | 12,284 | $ 12,044 | 11,741 | $ 11,753 | $ 12,420 | $ 13,905 |
Individually evaluated for impairment | 17,716 | 9,819 | ||||
Collectively evaluated for impairment | 939,245 | 762,526 | ||||
Total Loans | 956,961 | 772,345 | ||||
Construction and Land Development | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 793 | 813 | ||||
Ending balance | 793 | 424 | 813 | 681 | 798 | 758 |
Individually evaluated for impairment | 1,084 | 0 | ||||
Collectively evaluated for impairment | 38,752 | 22,082 | ||||
Total Loans | 39,836 | 22,082 | ||||
Farmland and Agricultural Production | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 45 | 43 | ||||
Ending balance | 45 | 41 | 43 | 25 | 27 | 459 |
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 12,985 | 9,989 | ||||
Total Loans | 12,985 | 9,989 | ||||
Residential 1-4 Family | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 30 | 30 | ||||
Collectively evaluated for impairment | 1,233 | 1,340 | ||||
Ending balance | 1,263 | 1,277 | 1,370 | 1,157 | 1,047 | 1,199 |
Individually evaluated for impairment | 2,015 | 1,661 | ||||
Collectively evaluated for impairment | 165,373 | 134,203 | ||||
Total Loans | 167,388 | 135,864 | ||||
Multifamily | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 152 | 141 | ||||
Ending balance | 152 | 141 | 141 | 88 | 95 | 67 |
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 31,880 | 34,272 | ||||
Total Loans | 31,880 | 34,272 | ||||
Commercial Real Estate | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 4,632 | 4,892 | ||||
Ending balance | 4,632 | 4,988 | 4,892 | 5,899 | 6,394 | 6,828 |
Individually evaluated for impairment | 7,055 | 4,381 | ||||
Collectively evaluated for impairment | 412,903 | 376,717 | ||||
Total Loans | 419,958 | 381,098 | ||||
Commercial and Industrial | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 937 | 441 | ||||
Collectively evaluated for impairment | 4,413 | 3,845 | ||||
Ending balance | 5,350 | $ 5,125 | 4,286 | $ 3,752 | $ 3,895 | $ 4,296 |
Individually evaluated for impairment | 7,562 | 3,777 | ||||
Collectively evaluated for impairment | 267,327 | 175,846 | ||||
Total Loans | 274,889 | 179,623 | ||||
Leases, net | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 4 | 0 | ||||
Ending balance | 4 | 0 | ||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 739 | 0 | ||||
Total Loans | 739 | 0 | ||||
Consumer and other | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 45 | 196 | ||||
Ending balance | 45 | 196 | ||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 9,286 | 9,417 | ||||
Total Loans | $ 9,286 | $ 9,417 |
Loans and Leases (Additional De
Loans and Leases (Additional Detail of Impaired loans, Segregated by Class) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | |
Unpaid Principal Balance | |||
Total | $ 19,069 | $ 19,069 | $ 10,586 |
Recorded Investment | |||
Total | 17,716 | 17,716 | 9,819 |
Allowance for Loan Losses Allocated | |||
Total | 967 | 967 | 471 |
Average Recorded Investment | |||
Total | 14,063 | 12,023 | 12,910 |
Interest Income Recognized | |||
Total | 55 | 171 | 367 |
Consumer and other | |||
Unpaid Principal Balance | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Recorded Investment | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Allowance for Loan Losses Allocated | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Average Recorded Investment | |||
With no related allowance recorded: | 0 | 0 | 4 |
With an allowance recorded: | 0 | 0 | 0 |
Interest Income Recognized | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Commercial and Industrial | |||
Unpaid Principal Balance | |||
With no related allowance recorded: | 5,937 | 5,937 | 3,331 |
With an allowance recorded: | 2,874 | 2,874 | 1,109 |
Recorded Investment | |||
With no related allowance recorded: | 4,888 | 4,888 | 3,131 |
With an allowance recorded: | 2,674 | 2,674 | 646 |
Allowance for Loan Losses Allocated | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 937 | 937 | 441 |
Average Recorded Investment | |||
With no related allowance recorded: | 4,090 | 3,652 | 3,640 |
With an allowance recorded: | 1,926 | 1,434 | 491 |
Interest Income Recognized | |||
With no related allowance recorded: | 0 | 0 | 130 |
With an allowance recorded: | 0 | 0 | 0 |
Construction and Land Development | |||
Unpaid Principal Balance | |||
With no related allowance recorded: | 1,085 | 1,085 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Recorded Investment | |||
With no related allowance recorded: | 1,085 | 1,085 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Allowance for Loan Losses Allocated | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Average Recorded Investment | |||
With no related allowance recorded: | 543 | 271 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Interest Income Recognized | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Farmland and Agricultural Production | |||
Unpaid Principal Balance | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Recorded Investment | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Allowance for Loan Losses Allocated | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Average Recorded Investment | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Interest Income Recognized | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Residential 1-4 Family | |||
Unpaid Principal Balance | |||
With no related allowance recorded: | 1,593 | 1,593 | 1,232 |
With an allowance recorded: | 461 | 461 | 468 |
Recorded Investment | |||
With no related allowance recorded: | 1,553 | 1,553 | 1,193 |
With an allowance recorded: | 461 | 461 | 468 |
Allowance for Loan Losses Allocated | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 30 | 30 | 30 |
Average Recorded Investment | |||
With no related allowance recorded: | 1,612 | 1,391 | 1,280 |
With an allowance recorded: | 462 | 465 | 473 |
Interest Income Recognized | |||
With no related allowance recorded: | 15 | 30 | 61 |
With an allowance recorded: | 6 | 17 | 23 |
Multifamily | |||
Unpaid Principal Balance | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Recorded Investment | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Allowance for Loan Losses Allocated | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Average Recorded Investment | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Interest Income Recognized | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Commercial Real Estate | Retail | |||
Unpaid Principal Balance | |||
With no related allowance recorded: | 3,288 | 3,288 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Recorded Investment | |||
With no related allowance recorded: | 3,288 | 3,288 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Allowance for Loan Losses Allocated | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Average Recorded Investment | |||
With no related allowance recorded: | 1,644 | 822 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Interest Income Recognized | |||
With no related allowance recorded: | 20 | 81 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Commercial Real Estate | Office | |||
Unpaid Principal Balance | |||
With no related allowance recorded: | 0 | 0 | 494 |
With an allowance recorded: | 0 | 0 | 0 |
Recorded Investment | |||
With no related allowance recorded: | 0 | 0 | 494 |
With an allowance recorded: | 0 | 0 | 0 |
Allowance for Loan Losses Allocated | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Average Recorded Investment | |||
With no related allowance recorded: | 0 | 165 | 502 |
With an allowance recorded: | 0 | 0 | 0 |
Interest Income Recognized | |||
With no related allowance recorded: | 0 | 0 | 26 |
With an allowance recorded: | 0 | 0 | 0 |
Commercial Real Estate | Industrial and Warehouse | |||
Unpaid Principal Balance | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Recorded Investment | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Allowance for Loan Losses Allocated | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Average Recorded Investment | |||
With no related allowance recorded: | 0 | 0 | 1,441 |
With an allowance recorded: | 0 | 0 | 0 |
Interest Income Recognized | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Commercial Real Estate | Health Care | |||
Unpaid Principal Balance | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Recorded Investment | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Allowance for Loan Losses Allocated | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Average Recorded Investment | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Interest Income Recognized | |||
With no related allowance recorded: | 0 | 0 | |
With an allowance recorded: | 0 | 0 | 0 |
Commercial Real Estate | Consumer and other | |||
Unpaid Principal Balance | |||
With no related allowance recorded: | 3,831 | 3,831 | 3,952 |
With an allowance recorded: | 0 | 0 | 0 |
Recorded Investment | |||
With no related allowance recorded: | 3,767 | 3,767 | 3,887 |
With an allowance recorded: | 0 | 0 | 0 |
Allowance for Loan Losses Allocated | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Average Recorded Investment | |||
With no related allowance recorded: | 3,786 | 3,823 | 5,015 |
With an allowance recorded: | 0 | 0 | 64 |
Interest Income Recognized | |||
With no related allowance recorded: | 14 | 43 | 127 |
With an allowance recorded: | $ 0 | $ 0 | $ 0 |
Loans and Leases (Unpaid Princi
Loans and Leases (Unpaid Principal Balance of Loans Modified in a Troubled Debt Restructuring) (Details) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2016USD ($)contract | Sep. 30, 2016USD ($)loan | Sep. 30, 2015contract | Dec. 31, 2015USD ($) | |
Receivables [Abstract] | ||||
Additions to troubled debt restructurings (in loans) | 1 | 1 | 0 | |
Troubled debt restructuring, accruing | $ 4,200 | $ 4,200 | $ 2,700 | |
Troubled debt restructuring, non-accruing | $ 75 | $ 75 | $ 94 |
Loans and Leases (Rollforward A
Loans and Leases (Rollforward Activity of Troubled Debt Restructurings) (Details) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2016USD ($) | Sep. 30, 2016contract | Sep. 30, 2016loan | Sep. 30, 2015contract | |
Financing Receivables Troubled Debt Restructuring, Recorded Investment [Roll Forward] | ||||
Balance, beginning | $ 2,832 | |||
Additions to troubled debt restructurings | 2,006 | |||
Removal of troubled debt restructurings | (519) | |||
Charge-off related to troubled debt restructurings | 0 | |||
Transfers to other real estate owned | 0 | |||
Repayments and other reductions | (55) | |||
Balance, ending | $ 4,264 | |||
Financing Receivables Troubled Debt Restructuring, Number of Loans [Roll Forward] | ||||
Balance, beginning (in loans) | loan | 6 | |||
Additions to troubled debt restructurings (in loans) | 1 | 1 | 0 | |
Removal of troubled debt restructurings (in loans) | loan | (2) | |||
Charge-off related to troubled debt restructurings (in loans) | loan | 0 | |||
Transfers to other real estate owned (in loans) | loan | 0 | |||
Repayments and other reductions (in loans) | loan | 0 | |||
Balance, ending (in loans) | loan | 5 |
Deposits (Composition of Intere
Deposits (Composition of Interest-Bearing Deposits) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Deposits [Abstract] | ||
NOW and money market accounts | $ 418,910 | $ 336,197 |
Savings | 61,399 | 36,207 |
Time deposit certificates of $250,000 or more | 111,384 | 69,961 |
Time deposit certificates of $100,000 to $250,000 | 123,917 | 127,091 |
Other time deposit certificates | 103,379 | 100,472 |
Interest-bearing deposit liabilities | $ 818,989 | $ 669,928 |
Deposits (Composition of Broker
Deposits (Composition of Brokered Deposits) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Deposits [Abstract] | ||
NOW and money market accounts | $ 35,001 | $ 35,271 |
Time deposit certificates | 42,842 | 11,874 |
Noninterest-bearing deposit liabilities | $ 77,843 | $ 47,145 |
Other Borrowed Funds (Compositi
Other Borrowed Funds (Composition of Other Borrowed Funds) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Short-term Debt [Line Items] | ||
Securities sold under agreements to repurchase | $ 24,561 | $ 25,069 |
Federal Home Loan Bank Advances | 15,000 | 16,000 |
Secured borrowings | 7,018 | 11,946 |
Other borrowed funds | 46,579 | 53,015 |
Matures January 6, 2016, 0.28% | ||
Short-term Debt [Line Items] | ||
Federal Home Loan Bank Advances | $ 0 | $ 11,000 |
Debt instrument, fixed interest rate (percent) | 0.28% | 0.28% |
Matures January 4, 2016, 0.16% | ||
Short-term Debt [Line Items] | ||
Federal Home Loan Bank Advances | $ 0 | $ 5,000 |
Debt instrument, fixed interest rate (percent) | 0.16% | 0.16% |
Matures October 13, 2016, 0.32% | ||
Short-term Debt [Line Items] | ||
Federal Home Loan Bank Advances | $ 9,000 | $ 0 |
Debt instrument, fixed interest rate (percent) | 320.00% | 320.00% |
Matures November 4, 2016, 0.40% | ||
Short-term Debt [Line Items] | ||
Federal Home Loan Bank Advances | $ 6,000 | $ 0 |
Debt instrument, fixed interest rate (percent) | 400.00% | 400.00% |
Other Borrowed Funds (Narrative
Other Borrowed Funds (Narrative) (Details) | 9 Months Ended | ||
Sep. 30, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 29, 2015USD ($)facility | |
Debt Instrument [Line Items] | |||
Advances from federal home loan banks | $ 15,000,000 | $ 16,000,000 | |
Revolving line of credit | |||
Debt Instrument [Line Items] | |||
Revolving line of credit | $ 4,000,000 | ||
Balance on line of credit | $ 0 | ||
Term loan | |||
Debt Instrument [Line Items] | |||
Revolving line of credit | $ 7,000,000 | ||
Line of Credit | |||
Debt Instrument [Line Items] | |||
Number of debt instruments | facility | 2 | ||
Line of Credit | LIBOR | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 2.25% | ||
Interest rate during period (as a percent) | 2.69% | ||
First Mortgage | |||
Debt Instrument [Line Items] | |||
Cash on hand (as a percent) | 133.00% | ||
Home Equity Line of Credit | |||
Debt Instrument [Line Items] | |||
Cash on hand (as a percent) | 200.00% | ||
First Mortgage and Equity Loans | |||
Debt Instrument [Line Items] | |||
Loans pledged as collateral | $ 383,000,000 | 338,000,000 | |
Commercial, Agricultural and Consumer Loans | |||
Debt Instrument [Line Items] | |||
Loans pledged as collateral | $ 186,400,000 | $ 100,100,000 |
Income Taxes (Income Tax Expens
Income Taxes (Income Tax Expense Recognized) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Current | $ 190 | $ 108 | ||
Deferred | 2,776 | 3,419 | ||
Total income tax (benefit) expense | $ 1,019 | $ 1,471 | $ 2,966 | $ 3,527 |
Income Taxes (Reconciliation) (
Income Taxes (Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Federal income tax at statutory rate | $ 3,987 | $ 3,648 | ||
Increase (decrease) due to: | ||||
Federal tax exempt | (577) | (419) | ||
State income tax, net of federal benefit | 583 | 533 | ||
Benefit of income taxed at lower rate | (114) | (104) | ||
Tax exempt income | (11) | (24) | ||
Cash surrender value of life insurance | (155) | (33) | ||
Bargain purchase gain | (652) | 0 | ||
Other | (95) | (74) | ||
Total income tax (benefit) expense | $ 1,019 | $ 1,471 | $ 2,966 | $ 3,527 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Allowance for loan losses | $ 4,699 | $ 4,169 |
Merger expenses | 186 | 140 |
Organization expenses | 205 | 226 |
Net operating losses | 311 | 3,774 |
Contribution carryforward | 9 | 5 |
Restricted stock | 222 | 0 |
Non-qualified stock options | 715 | 644 |
Foreclosed assets | 282 | 315 |
Tax credits | 396 | 334 |
Other | 203 | 412 |
Total deferred tax assets | 7,228 | 10,019 |
Deferred tax liabilities: | ||
Depreciation | (1,138) | (186) |
Core deposit intangible | (305) | 0 |
Unrealized gains on securities available for sale | (2,132) | (642) |
Total deferred tax liabilities | (3,575) | (828) |
Net deferred tax asset | $ 3,653 | $ 9,191 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Federal | ||
Income Tax Contingency [Line Items] | ||
Net operating loss carryforwards | $ 736 | $ 9,300 |
Illinois | ||
Income Tax Contingency [Line Items] | ||
Net operating loss carryforwards | $ 1,100 | $ 11,100 |
Stock Compensation Plans (Narra
Stock Compensation Plans (Narrative) (Details) - USD ($) $ in Thousands | Aug. 15, 2013 | Jan. 31, 2016 | Dec. 31, 2011 | Sep. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | May 19, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted stock compensation expense | $ 607 | $ 716 | |||||||
Options vested (shares) | 0 | 0 | |||||||
Restricted Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted stock compensation expense | $ 607 | 716 | |||||||
Unrecognized compensation expense | $ 270 | 270 | |||||||
Restricted Stock | Minimum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares issued with performance conditions | 52,301 | ||||||||
Restricted Stock | Maximum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares issued with performance conditions | 131,948 | ||||||||
Equity Incentive Plan | Stock Options | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Increase in number of shares authorized (in shares) | 1,000,000 | ||||||||
Number of shares authorized (in shares) | 2,430,000 | ||||||||
2013 Equity Incentive Plan | Stock Options | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Increase in number of shares authorized (in shares) | 900,000 | ||||||||
Number of shares authorized (in shares) | 1,000,000 | ||||||||
2016 Equity Incentive Plan | Stock Options | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares authorized (in shares) | 2,000,000 | ||||||||
Stock Incentive Plan and Equity Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Intrinsic value of stock options | 4,157 | 4,157 | $ 1,308 | $ 0 | |||||
Restricted stock compensation expense | 293 | $ 47 | |||||||
Unrecognized compensation expense | $ 170 | $ 170 | |||||||
Stock Incentive Plan and Equity Incentive Plan | Vesting on first anniversary | Stock Options | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage (as a percent) | 33.30% | ||||||||
Stock Incentive Plan and Equity Incentive Plan | Vesting on each successive anniversary | Stock Options | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage (as a percent) | 33.30% |
Stock Compensation Plans (Summa
Stock Compensation Plans (Summarized Data Concerning Stock Options) (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Shares | ||
Exercised (in shares) | (43,720) | |
Stock Incentive Plan and Equity Incentive Plan | ||
Shares | ||
Outstanding at beginning of year (in shares) | 1,305,504 | 1,089,404 |
Granted (in shares) | 343,950 | 217,500 |
Exercised (in shares) | (43,720) | 0 |
Canceled (in shares) | 0 | 0 |
Expired (in shares) | 0 | 0 |
Forfeited (in shares) | 0 | (1,400) |
Outstanding at end of period (in shares) | 1,605,734 | 1,305,504 |
Exercisable at end of period (in shares) | 1,243,234 | 1,088,004 |
Weighted Average Exercise Price (in dollars per share) | ||
Outstanding at beginning of year (in dollars per share) | $ 6.69 | $ 7 |
Granted (in dollars per share) | 7.73 | 5.20 |
Exercised (in dollars per share) | 7.08 | 0 |
Canceled (in dollars per share) | 0 | 0 |
Expired (in dollars per share) | 0 | 0 |
Forfeited (in dollars per share) | 0 | 8.25 |
Outstanding at end of period (in dollars per share) | 6.91 | 6.69 |
Exercisable at end of period (in dollars per share) | $ 7.05 | $ 6.99 |
Aggregate Intrinsic Value | ||
Outstanding at beginning of year | $ 1,308 | $ 0 |
Granted | 591 | 444 |
Exercised | 901 | 0 |
Outstanding at end of period | 4,157 | 1,308 |
Exercisable at end of period | $ 4,232 | $ 864 |
Stock Compensation Plans (Infor
Stock Compensation Plans (Information Pertaining to Options Outstanding) (Details) - Stock Incentive Plan and Equity Incentive Plan - $ / shares | 9 Months Ended | ||
Sep. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number outstanding (in shares) | 1,605,734 | 1,305,504 | 1,089,404 |
Options number exercisable (in shares) | 1,243,234 | 1,088,004 | |
$ 5 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise prices (in dollars per share) | $ 5 | ||
Number outstanding (in shares) | 364,376 | ||
Weighted average remaining life (in years) | 2 years 9 months 14 days | ||
Options number exercisable (in shares) | 364,376 | ||
$ 5.20 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise prices (in dollars per share) | $ 5.20 | ||
Number outstanding (in shares) | 217,500 | ||
Weighted average remaining life (in years) | 8 years 3 months 2 days | ||
Options number exercisable (in shares) | 72,500 | ||
$ 5.53 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise prices (in dollars per share) | $ 5.53 | ||
Number outstanding (in shares) | 6,000 | ||
Weighted average remaining life (in years) | 3 years 7 months 1 day | ||
Options number exercisable (in shares) | 6,000 | ||
$ 6.25 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise prices (in dollars per share) | $ 6.25 | ||
Number outstanding (in shares) | 25,000 | ||
Weighted average remaining life (in years) | 4 years 10 days | ||
Options number exercisable (in shares) | 25,000 | ||
$ 7.24 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise prices (in dollars per share) | $ 7.24 | ||
Number outstanding (in shares) | 217,500 | ||
Weighted average remaining life (in years) | 9 years 3 months 2 days | ||
Options number exercisable (in shares) | 0 | ||
$ 7.50 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise prices (in dollars per share) | $ 7.50 | ||
Number outstanding (in shares) | 405,380 | ||
Weighted average remaining life (in years) | 9 months 25 days | ||
Options number exercisable (in shares) | 405,380 | ||
$ 8 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise prices (in dollars per share) | $ 8 | ||
Number outstanding (in shares) | 4,000 | ||
Weighted average remaining life (in years) | 2 years 11 months 15 days | ||
Options number exercisable (in shares) | 4,000 | ||
$ 8.58 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise prices (in dollars per share) | $ 8.58 | ||
Number outstanding (in shares) | 126,450 | ||
Weighted average remaining life (in years) | 9 years 9 months 2 days | ||
Options number exercisable (in shares) | 126,450 | ||
$ 9.25 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise prices (in dollars per share) | $ 9.25 | ||
Number outstanding (in shares) | 239,528 | ||
Weighted average remaining life (in years) | 1 year 7 months 17 days | ||
Options number exercisable (in shares) | 239,528 |
Stock Compensation Plans (Sched
Stock Compensation Plans (Schedule of Nonvested Restricted Stock Units Activity) (Details) - Restricted Stock | 9 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Number of Shares | |
Outstanding at beginning of year (in shares) | shares | 25,000 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | (11,666) |
Canceled (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Non-vested shares, end of period (in shares) | shares | 13,334 |
Weighted Average Grant Date Fair Value (in dollars per share) | |
Outstanding at beginning of year (in dollars per share) | $ / shares | $ 5.14 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 4.73 |
Canceled (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 0 |
Nonvested shares, end of period (in dollars per share) | $ / shares | $ 5.50 |
Concentrations, Commitments a64
Concentrations, Commitments and Contingencies (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments to extend credit | $ 269,551 | $ 179,517 |
Standby letters of credit | 10,492 | 10,353 |
Performance letters of credit | 2,357 | 1,088 |
Total | $ 282,400 | $ 190,958 |
Capital and Regulatory Matter65
Capital and Regulatory Matters (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Capital [Abstract] | ||
Capital to risk weighted assets (as a percent) | 13.52% | 14.69% |
Capital to risk weighted assets | $ 138,642 | $ 124,159 |
Capital required for capital adequacy to risk weighted assets (as a percent) | 8.625% | |
Capital Required for Capital Adequacy | $ 88,415 | |
Capital required to be well capitalized to risk weighted assets (as a percent) | 10.00% | |
Tier One Risk Based Capital [Abstract] | ||
Tier one risk based capital to risk weighted assets (as a percent) | 10.83% | 11.62% |
Tier one risk based capital | $ 111,058 | $ 98,276 |
Tier one risk based capital required for capital adequacy to risk weighted assets (as a percent) | 6.625% | |
Tier One Risk Based Capital Required for Capital Adequacy | $ 67,913 | |
Tier one common equity to risk weighted assets percent (as a percent) | 10.83% | 11.62% |
Tier one common equity to risk weighted assets amount | $ 111,058 | $ 98,276 |
Tier one common equity capital required for capital adequacy to risk weighted assets (as a percent) | 5.125% | |
Tier One Common Equity Capital Required for Capital Adequacy | $ 52,536 | |
Tier one common equity capital required to be well capitalized (as a percent) | 6.50% | |
Tier one leverage capital to average assets (as a percent) | 9.15% | 9.36% |
Tier one leverage to average assets | $ 111,058 | $ 98,276 |
Tier one leverage capital required for capital adequacy to average assets (as a percent) | 4.00% | |
Tier One Leverage Capital Required for Capital Adequacy | $ 48,593 | |
Tier one leverage capital required to be well capitalized to average assets (as a percent) | 5.00% | |
First Community Financial Bank | ||
Capital [Abstract] | ||
Capital to risk weighted assets (as a percent) | 13.69% | 15.79% |
Capital to risk weighted assets | $ 140,047 | $ 133,247 |
Capital required for capital adequacy to risk weighted assets (as a percent) | 8.625% | |
Capital Required for Capital Adequacy | $ 88,215 | |
Capital required to be well capitalized to risk weighted assets (as a percent) | 10.00% | |
Capital required to be well capitalized | $ 102,279 | |
Tier One Risk Based Capital [Abstract] | ||
Tier one risk based capital to risk weighted assets (as a percent) | 12.49% | 14.54% |
Tier one risk based capital | $ 127,763 | $ 122,664 |
Tier one risk based capital required for capital adequacy to risk weighted assets (as a percent) | 6.625% | |
Tier One Risk Based Capital Required for Capital Adequacy | $ 67,760 | |
Tier one risk based capital required to be well capitalized to risk weighted assets (as a percent) | 8.00% | |
Tier one risk based capital required to be well capitalized | $ 81,823 | |
Tier one common equity to risk weighted assets percent (as a percent) | 12.49% | 14.54% |
Tier one common equity to risk weighted assets amount | $ 127,763 | $ 122,664 |
Tier one common equity capital required for capital adequacy to risk weighted assets (as a percent) | 5.125% | |
Tier One Common Equity Capital Required for Capital Adequacy | $ 52,418 | |
Tier one common equity capital required to be well capitalized (as a percent) | 6.50% | |
Tier one common equity capital required to be well capitalized | $ 66,481 | |
Tier one leverage capital to average assets (as a percent) | 10.52% | 11.71% |
Tier one leverage to average assets | $ 127,763 | $ 122,664 |
Tier one leverage capital required for capital adequacy to average assets (as a percent) | 4.00% | |
Tier One Leverage Capital Required for Capital Adequacy | $ 48,563 | |
Tier one leverage capital required to be well capitalized to average assets (as a percent) | 5.00% | |
Tier one leverage capital required to be well capitalized | $ 60,704 | |
Minimum | ||
Capital [Abstract] | ||
Capital required for capital adequacy to risk weighted assets (as a percent) | 8.00% |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 188,062 | $ 205,604 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 186,558 | 204,100 |
Derivative financial instruments | 73 | 95 |
Derivative financial instruments | 73 | 95 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,504 | 1,504 |
Derivative financial instruments | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments | 73 | 95 |
Derivative financial instruments | 73 | 95 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments | 73 | 95 |
Derivative financial instruments | 73 | 95 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Government sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 16,409 | |
Government sponsored enterprises | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 16,409 | |
Government sponsored enterprises | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | |
Government sponsored enterprises | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 16,409 | |
Government sponsored enterprises | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | |
Residential collateralized mortgage obligations | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 57,091 | 62,364 |
Residential collateralized mortgage obligations | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Residential collateralized mortgage obligations | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 57,091 | 62,364 |
Residential collateralized mortgage obligations | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Residential mortgage backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 26,408 | 28,291 |
Residential mortgage backed securities | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 26,408 | 28,291 |
Residential mortgage backed securities | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Residential mortgage backed securities | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 26,408 | 28,291 |
Residential mortgage backed securities | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 104,563 | 98,540 |
State and political subdivisions | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 104,563 | 98,540 |
State and political subdivisions | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
State and political subdivisions | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 103,059 | 97,036 |
State and political subdivisions | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 1,504 | $ 1,504 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 1,504 | $ 1,514 |
Total gains or losses (realized/unrealized) included in other comprehensive income | (9) | |
Included in earnings | 0 | 0 |
Purchases | 0 | 0 |
Paydowns and maturities | 0 | 0 |
Transfers in and/or out of Level 3 | 0 | 0 |
Ending balance | $ 1,504 | $ 1,505 |
Fair Value Measurements (Fair68
Fair Value Measurements (Fair Value Measurements, Nonrecurring) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 17,716 | $ 9,819 |
Foreclosed assets | 725 | 5,487 |
Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale | 1,331 | 400 |
Impaired loans | 16,749 | 9,348 |
Foreclosed assets | 725 | 5,487 |
Fair Value, Measurements, Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale | 0 | 0 |
Impaired loans | 0 | 0 |
Foreclosed assets | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale | 0 | 0 |
Impaired loans | 0 | 0 |
Foreclosed assets | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale | 1,331 | 400 |
Impaired loans | 16,749 | 9,348 |
Foreclosed assets | $ 725 | $ 5,487 |
Fair Value Measurements (Additi
Fair Value Measurements (Additional Quantitative Information) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Impaired loans | $ 17,716 | $ 9,819 |
Foreclosed assets | $ 725 | 5,487 |
Mortgage loans held for sale | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortgage loans held for sale | $ 400 | |
Discount rate (as a percent) | 0.00% | 0.00% |
Impaired loans | Appraisal of Collateral | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Impaired loans | $ 9,348 | |
Impaired loans | Minimum | Appraisal of Collateral | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount rate (as a percent) | 10.00% | 10.00% |
Impaired loans | Maximum | Appraisal of Collateral | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount rate (as a percent) | 25.00% | 25.00% |
Foreclosed assets | Appraisal of Collateral | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Foreclosed assets | $ 5,487 | |
Discount rate (as a percent) | 10.00% | 10.00% |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Collectively evaluated for impairment | $ 2.6 | $ 3.1 |
Collectively evaluated for impairment (as a percent) | 26.00% | 32.00% |
Impaired loans | Appraisal of Collateral | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Appraisal age (greater than, in years) | 1 year | |
Impaired loans | Minimum | Appraisal of Collateral | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Appraisal adjustment discount rate (as a percent) | 10.00% | 10.00% |
Frequency of valuations (in months) | 12 months | |
Additional discount used for selling costs (as a percent) | 5.00% | |
Impaired loans | Maximum | Appraisal of Collateral | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Appraisal adjustment discount rate (as a percent) | 25.00% | 25.00% |
Frequency of valuations (in months) | 18 months | |
Additional discount used for selling costs (as a percent) | 15.00% | |
Foreclosed assets | Appraisal of Collateral | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Selling costs discount rate (as a percent) | 10.00% | 10.00% |
Fair Value Measurements (Fair71
Fair Value Measurements (Fair Value, by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Financial assets: | ||||
Cash and due from banks | $ 21,622 | $ 10,699 | $ 10,110 | $ 13,329 |
Federal funds sold | 550 | 0 | ||
Interest-bearing deposits in banks | 33,349 | 7,406 | ||
Securities available for sale | 188,062 | 205,604 | ||
Non-marketable equity securities | 3,959 | 1,367 | ||
Mortgage loans held for sale | 1,331 | 400 | ||
Loans, net | 944,671 | 760,578 | ||
Financial liabilities: | ||||
Noninterest bearing | 246,262 | 196,063 | ||
Interest bearing | 818,989 | 669,928 | ||
Other borrowed funds | 46,579 | 53,015 | ||
Subordinated debt | 15,300 | 15,300 | ||
Carrying (Reported) Amount, Fair Value Disclosure | ||||
Financial assets: | ||||
Cash and due from banks | 21,622 | 10,699 | ||
Federal funds sold | 550 | |||
Interest-bearing deposits in banks | 33,349 | 7,406 | ||
Securities available for sale | 188,062 | 205,604 | ||
Non-marketable equity securities | 3,959 | 1,367 | ||
Mortgage loans held for sale | 1,331 | 400 | ||
Loans, net | 944,671 | 760,578 | ||
Accrued interest receivable | 3,255 | 3,106 | ||
Derivative financial instruments | 73 | 95 | ||
Financial liabilities: | ||||
Noninterest bearing | 246,262 | 196,063 | ||
Interest bearing | 818,989 | 669,928 | ||
Other borrowed funds | 53,015 | |||
Subordinated debt | 15,300 | 15,300 | ||
Accrued interest payable | 393 | 545 | ||
Derivative financial instruments | 73 | 95 | ||
Derivative financial instruments, estimated fair value | 73 | 95 | ||
Estimate of Fair Value, Fair Value Disclosure | ||||
Financial assets: | ||||
Cash and due from banks, estimated fair value | 21,622 | 10,699 | ||
Federal funds sold | 550 | |||
Interest-bearing deposits in banks, estimated fair value | 33,349 | 7,406 | ||
Securities available for sale | 188,062 | 205,604 | ||
Nonmarketable equity securities, estimated fair value | 3,959 | 1,367 | ||
Mortgages loans held for sale, estimated fair value | 1,331 | |||
Derivative financial instruments | 73 | 95 | ||
Mortgage loans held for sale, estimated fair value | 400 | |||
Loans, net, estimated fair value | 930,266 | 760,159 | ||
Accrued interest receivable, estimated fair value | 3,255 | 3,106 | ||
Financial liabilities: | ||||
Derivative financial instruments | 73 | 95 | ||
Non-interest bearing deposits, estimated fair value | 246,262 | 196,063 | ||
Interest-bearing deposits, estimated fair value | 806,285 | 663,174 | ||
Other borrowed funds, estimated fair value | 46,274 | 53,015 | ||
Subordinated debt, estimated fair value | 16,228 | 15,656 | ||
Accrued interest payable, estimated fair value | 393 | 545 | ||
Derivative financial instruments, estimated fair value | 73 | 95 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Financial assets: | ||||
Cash and due from banks, estimated fair value | 21,622 | 10,699 | ||
Federal funds sold | 550 | |||
Interest-bearing deposits in banks, estimated fair value | 33,349 | 7,406 | ||
Securities available for sale | 0 | 0 | ||
Nonmarketable equity securities, estimated fair value | 0 | 0 | ||
Mortgages loans held for sale, estimated fair value | 0 | |||
Derivative financial instruments | 0 | 0 | ||
Mortgage loans held for sale, estimated fair value | 0 | |||
Loans, net, estimated fair value | 0 | 0 | ||
Accrued interest receivable, estimated fair value | 3,255 | 3,106 | ||
Financial liabilities: | ||||
Derivative financial instruments | 0 | 0 | ||
Non-interest bearing deposits, estimated fair value | 246,262 | 196,063 | ||
Interest-bearing deposits, estimated fair value | 475,617 | 372,404 | ||
Other borrowed funds, estimated fair value | 46,274 | 53,015 | ||
Subordinated debt, estimated fair value | 0 | 0 | ||
Accrued interest payable, estimated fair value | 393 | 545 | ||
Derivative financial instruments, estimated fair value | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) | ||||
Financial assets: | ||||
Cash and due from banks, estimated fair value | 0 | 0 | ||
Federal funds sold | 0 | |||
Interest-bearing deposits in banks, estimated fair value | 0 | 0 | ||
Securities available for sale | 186,558 | 204,100 | ||
Nonmarketable equity securities, estimated fair value | 0 | 0 | ||
Mortgages loans held for sale, estimated fair value | 0 | |||
Derivative financial instruments | 73 | 95 | ||
Mortgage loans held for sale, estimated fair value | 0 | |||
Loans, net, estimated fair value | 0 | 0 | ||
Accrued interest receivable, estimated fair value | 0 | 0 | ||
Financial liabilities: | ||||
Derivative financial instruments | 73 | 95 | ||
Non-interest bearing deposits, estimated fair value | 0 | 0 | ||
Interest-bearing deposits, estimated fair value | 0 | 0 | ||
Other borrowed funds, estimated fair value | 0 | 0 | ||
Subordinated debt, estimated fair value | 0 | 0 | ||
Accrued interest payable, estimated fair value | 0 | 0 | ||
Derivative financial instruments, estimated fair value | 73 | 95 | ||
Significant Unobservable Inputs (Level 3) | ||||
Financial assets: | ||||
Cash and due from banks, estimated fair value | 0 | 0 | ||
Federal funds sold | 0 | |||
Interest-bearing deposits in banks, estimated fair value | 0 | 0 | ||
Securities available for sale | 1,504 | 1,504 | ||
Nonmarketable equity securities, estimated fair value | 3,959 | 1,367 | ||
Mortgages loans held for sale, estimated fair value | 1,331 | |||
Derivative financial instruments | 0 | 0 | ||
Mortgage loans held for sale, estimated fair value | 400 | |||
Loans, net, estimated fair value | 930,266 | 760,159 | ||
Accrued interest receivable, estimated fair value | 0 | 0 | ||
Financial liabilities: | ||||
Derivative financial instruments | 0 | 0 | ||
Non-interest bearing deposits, estimated fair value | 0 | 0 | ||
Interest-bearing deposits, estimated fair value | 330,668 | 290,770 | ||
Other borrowed funds, estimated fair value | 0 | 0 | ||
Subordinated debt, estimated fair value | 16,228 | 15,656 | ||
Accrued interest payable, estimated fair value | 0 | 0 | ||
Derivative financial instruments, estimated fair value | $ 0 | $ 0 |
Derivatives and Hedging Activ72
Derivatives and Hedging Activities (Details) - Not Designated as Hedging Instrument - Interest Rate Swap - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Derivative [Line Items] | |||
Derivative notional value | $ 1,200 | $ 1,300 | |
Derivative financial instruments | 73 | $ 95 | |
Derivative, gain (loss) on derivative, net | $ 14 | $ 28 |
Merger Transaction (Details)
Merger Transaction (Details) - USD ($) $ in Thousands | Jul. 01, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 |
Business Acquisition [Line Items] | |||||
Professional fees | $ 369 | $ 342 | $ 1,136 | $ 1,134 | |
Mazon State Bank | |||||
Business Acquisition [Line Items] | |||||
Purchase price | $ 8,500 |