Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 01, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | FIRST COMMUNITY FINANCIAL PARTNERS, INC. | ||
Entity Central Index Key | 1,469,134 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 17,758,386 | ||
Entity Public Float | $ 111,425,732 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Well Known Issuer | No | ||
Entity Voluntary Filer | No | ||
Entity Current Reporting Status | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and due from banks | $ 16,225 | $ 10,699 |
Interest-bearing deposits in banks | 8,548 | 7,406 |
Securities available for sale | 202,198 | 205,604 |
Non-marketable equity securities | 3,297 | 1,367 |
Mortgage loans held for sale | 1,230 | 400 |
Loans held for sale | 1,085 | 0 |
Loans, net of allowance for loan and lease losses of $11,684 in 2016; $11,741 in 2015 | 979,934 | 760,578 |
Premises and equipment, net | 22,214 | 18,529 |
Foreclosed assets | 725 | 5,487 |
Cash surrender value of life insurance | 19,476 | 16,561 |
Deferred tax asset, net | 6,613 | 9,191 |
Accrued interest receivable and other assets | 6,665 | 4,830 |
Total assets | 1,268,210 | 1,040,652 |
Deposits | ||
Noninterest bearing | 247,856 | 196,063 |
Interest bearing | 835,300 | 669,928 |
Total deposits | 1,083,156 | 865,991 |
Other borrowed funds | 51,153 | 53,015 |
Subordinated debt | 15,300 | 15,300 |
Accrued interest payable and other liabilities | 4,886 | 3,305 |
Total liabilities | 1,154,495 | 937,611 |
Concentrations, Commitments and Contingencies (Note 13) | ||
First Community Financial Partners, Inc. Shareholders’ Equity | ||
Common stock, $1.00 par value; 60,000,000 shares authorized; 17,242,645 issued and outstanding at December 31, 2016 and 17,026,941 issued and outstanding at December 31, 2015 | 17,243 | 17,027 |
Additional paid-in capital | 83,777 | 82,211 |
Retained earnings | 13,907 | 2,800 |
Accumulated other comprehensive income (loss) | (1,212) | 1,003 |
Total shareholders' equity | 113,715 | 103,041 |
Total liabilities and shareholders' equity | $ 1,268,210 | $ 1,040,652 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for loan losses | $ 11,684 | $ 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) | 17,242,645 | 17,026,941 |
Common stock, shares, outstanding (in shares) | 17,242,645 | 17,026,941 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Interest income: | |||
Loans, including fees | $ 38,424 | $ 32,525 | $ 32,066 |
Securities | 4,217 | 4,134 | 3,104 |
Federal funds sold and other | 136 | 66 | 78 |
Total interest income | 42,777 | 36,725 | 35,248 |
Interest expense: | |||
Deposits | 4,128 | 3,923 | 4,439 |
Federal funds purchased and other borrowed funds | 385 | 215 | 68 |
Subordinated debt | 1,188 | 1,800 | 1,841 |
Total interest expense | 5,701 | 5,938 | 6,348 |
Net interest income | 37,076 | 30,787 | 28,900 |
Provision for loan losses | 1,066 | (2,077) | 3,000 |
Net interest income after provision for loan losses | 36,010 | 32,864 | 25,900 |
Noninterest income: | |||
Service charges on deposit accounts | 985 | 756 | 677 |
Gain on sale of loans | 16 | 0 | 39 |
Gain on sale of securities | 617 | 484 | 912 |
Gain on foreclosed assets, net | 0 | 0 | 19 |
Mortgage fee income | 570 | 531 | 402 |
Bargain purchase gain | 1,920 | 0 | 0 |
Other | 1,359 | 726 | 1,244 |
Noninterest income | 5,467 | 2,497 | 3,293 |
Noninterest expenses: | |||
Salaries and employee benefits | 14,688 | 11,538 | 11,191 |
Occupancy and equipment expense | 1,982 | 1,977 | 2,111 |
Data processing | 1,914 | 912 | 959 |
Professional fees | 1,422 | 1,201 | 1,283 |
Advertising and business development | 1,050 | 853 | 845 |
Losses on sale and writedowns of foreclosed assets, net | 48 | 187 | 434 |
Foreclosed assets expenses, net of rental income | 40 | 130 | 219 |
Other expense | 4,902 | 3,744 | 3,531 |
Noninterest expense | 26,046 | 20,542 | 20,573 |
Income before income taxes | 15,431 | 14,819 | 8,620 |
Income taxes | 4,324 | 5,000 | 2,737 |
Net income | 11,107 | 9,819 | 5,883 |
Dividends and accretion on preferred shares | 0 | 0 | (526) |
Gain on redemption of preferred shares | $ 0 | $ 0 | 5 |
Net income attributable to First Community Financial Partners, Inc. | $ 5,362 | ||
Common share data | |||
Basic earnings per common share (in dollars per share) | $ 0.65 | $ 0.58 | $ 0.32 |
Diluted earnings per common share (in dollars per share) | $ 0.64 | $ 0.57 | $ 0.32 |
Weighted average common shares outstanding for basic earnings per common share (in shares) | 17,184,432 | 16,939,010 | 16,515,489 |
Weighted average common shares outstanding for diluted earnings per common share (in shares) | 17,630,600 | 17,085,752 | 16,741,215 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 11,107 | $ 9,819 | $ 5,883 |
Unrealized holding gains on investment securities | (3,015) | 889 | 1,619 |
Reclassification adjustments for gains included in net income | (617) | (484) | (912) |
Tax effect of realized and unrealized gains and losses on investment securities | 1,417 | (158) | (276) |
Other comprehensive income (loss), net of tax | (2,215) | 247 | 431 |
Comprehensive income | $ 8,892 | $ 10,066 | $ 6,314 |
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 (loss) | Series B Preferred StockPreferred Stock | Series C Preferred StockPreferred Stock |
Balance, beginning of period at Dec. 31, 2013 | $ 91,587 | $ 16,334 | $ 81,241 | $ (12,381) | $ 325 | $ 5,176 | $ 892 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 5,883 | 5,883 | |||||
Other comprehensive income (loss), net of tax | 431 | 431 | |||||
Repurchase of preferred shares | (6,264) | 5 | (5,176) | (1,093) | |||
Discount accretion on preferred shares | 0 | (201) | 201 | ||||
Dividends on preferred shares | (325) | (325) | |||||
Issuance of shares of common stock for restricted stock awards and amortization | (87) | 334 | (421) | ||||
Stock based compensation expense | 828 | 828 | |||||
Balance, end of period at Dec. 31, 2014 | 92,053 | 16,668 | 81,648 | (7,019) | 756 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 9,819 | 9,819 | |||||
Other comprehensive income (loss), net of tax | 247 | 247 | |||||
Issuance of shares of common stock for restricted stock awards and amortization | (4) | 306 | (310) | ||||
Issuance of shares of common stock for exercise of warrants | 231 | 53 | 178 | ||||
Reclass of warrants upon redemption of subordinated debt, net of amortization | (214) | (214) | |||||
Stock based compensation expense | 909 | 909 | |||||
Balance, end 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 | 11,107 | 11,107 | |||||
Other comprehensive income (loss), net of tax | (2,215) | (2,215) | |||||
Issuance of shares of common stock for restricted stock awards and amortization | (33) | 140 | (173) | ||||
Issuance of shares of common stock for exercise of warrants | 115 | 27 | 88 | ||||
Reclass of warrants upon redemption of subordinated debt, net of amortization | 359 | 49 | 310 | ||||
Tax windfall benefit | 64 | 64 | |||||
Stock based compensation expense | 1,277 | 1,277 | |||||
Balance, end of period at Dec. 31, 2016 | $ 113,715 | $ 17,243 | $ 83,777 | $ 13,907 | $ (1,212) | $ 0 | $ 0 |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Stockholders' Equity [Abstract] | |||
Issuance of shares of common stock for restricted stock (in shares) | 139,684 | 306,189 | 334,420 |
Issuance of shares of common stock for exercise of warrants (in shares) | 27,500 | 52,750,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Cash Flows [Abstract] | |||
Net income | $ 11,107 | $ 9,819 | $ 5,883 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net amortization of securities | 2,082 | 1,929 | 737 |
Provision for loan losses | 1,066 | (2,077) | 3,000 |
Bargain purchase gain | (1,920) | 0 | 0 |
Gain on sale of foreclosed assets, net | 0 | (13) | (19) |
Writedown of foreclosed assets | 48 | 200 | 434 |
Net accretion (amortization) of deferred loan fees | 205 | 87 | (75) |
Warrant accretion | 0 | 6 | 28 |
Depreciation and amortization of premises and equipment | 1,183 | 1,293 | 1,250 |
Realized gains on sales of available for sale securities, net | (617) | (484) | (912) |
Proceeds from life insurance | 0 | 0 | 412 |
Increase in cash surrender value of life insurance | (598) | (12,238) | (222) |
Amortization of core deposit intangible | 58 | 0 | 0 |
Deferred income taxes | 2,723 | 4,884 | 2,273 |
Proceeds from sale of loans | 169 | 0 | 9,446 |
Gain on sale of loans | (16) | 0 | (39) |
Net decrease (increase) in mortgage loans held for sale | (830) | 338 | (738) |
Net decrease (increase) in loans held for sale | (1,085) | 0 | 2,619 |
Increase in accrued interest receivable and other assets | (423) | (286) | (378) |
Decrease in accrued interest payable and other liabilities | 1,253 | (411) | (1,858) |
Restricted stock compensation expense | 936 | 838 | 828 |
Stock option compensation expense | 341 | 71 | 0 |
Net cash provided by operating activities | 15,682 | 3,956 | 22,669 |
Cash Flows From Investing Activities | |||
Acquisition payment, net of cash acquired | (2,746) | 0 | 0 |
Net change in interest bearing deposits in banks | (1,142) | 12,261 | 9,625 |
Net change in fed funds sold | 550 | 0 | 0 |
Activity in available for sale securities: | |||
Purchases | (26,544) | (88,757) | (126,494) |
Maturities, prepayments and calls | 14,796 | 20,350 | 28,408 |
Sales | 49,234 | 30,450 | 71,597 |
Purchases of non-marketable equity securities | (1,796) | 0 | (400) |
Net increase in loans | (188,761) | (86,591) | (51,405) |
Purchases of premises and equipment | (675) | (453) | (4,239) |
Proceeds from sale of foreclosed assets | 4,723 | 147 | 1,567 |
Net cash used in investing activities | (152,361) | (112,593) | (71,341) |
Cash Flows From Financing Activities | |||
Net increase in deposits | 144,067 | 96,581 | 44,009 |
Cash paid on redemption of subordinated debt | 0 | (14,060) | 0 |
Net increase (decrease) in other borrowings | (1,862) | 23,486 | 3,966 |
Proceeds from issuance of subordinated debt | 0 | 0 | 9,800 |
Dividends paid on preferred shares | 0 | 0 | (325) |
Repurchase of preferred shares | 0 | 0 | (6,264) |
Net cash provided by financing activities | 142,205 | 106,007 | 51,186 |
Net change in cash and due from banks | 5,526 | (2,630) | 2,514 |
Cash and due from banks, beginning of period | 10,699 | 13,329 | 10,815 |
Cash and due from banks, end of period | $ 16,225 | $ 10,699 | $ 13,329 |
Consolidated Statements of Cas9
Consolidated Statements of Cash Flows (Supplemental Information) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Supplemental Disclosures of Cash Flow Information | |||
Cash payments for interest | $ 5,680 | $ 6,421 | $ 6,428 |
Supplemental Schedule of Noncash Investing and Financing Activities | |||
Transfer of loans to foreclosed assets | $ 0 | $ 3,291 | $ 96 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of consolidation : The consolidated financial statements include the accounts of First Community Financial Partners, Inc. (the “Company” or “First Community”) and its subsidiaries, including its wholly-owned bank subsidiary, First Community Financial Bank (the “Bank”), based in Joliet, Illinois, and other wholly-owned real estate holding entities. All significant intercompany balances and transactions have been eliminated in consolidation. Nature of operations : First Community is a bank holding company providing a full range of financial services to individuals and corporate clients through the Bank. Use of estimates : In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan and lease losses, valuation of foreclosed assets, and the valuation of deferred tax assets. Presentation of cash flows : For purposes of the statements of cash flows, cash and cash equivalents include cash on hand, cash items and balances due from banks. Cash flows from federal funds sold, interest bearing deposits in banks, loans originated by the Company, deposits and other borrowings are reported as net increases or decreases. Interest-bearing deposits in banks : Interest bearing deposits in banks mature within one year and are carried at cost. Securities : 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. Declines in the fair value of individual securities available for sale below their cost that are related to credit losses are deemed to be other-than-temporary and reflected in earnings as realized losses. In determining whether other-than-temporary impairment exists, management considers many factors, including (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent or requirement of the Company to sell its investment in the issuer prior to any anticipated recovery in fair value. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Non-marketable equity securities : The Company owns common stock issued by the FHLB. No ready market exists for these stocks, and they have no quoted market values. The Bank, as a member of the FHLB, is required to maintain an investment in the capital stock of the FHLB. The stock is redeemable at par value by the FHLB, and is therefore, carried at cost and periodically evaluated for impairment. The Company records dividends in income on the date received. Loans held for sale: Loans held for sale consists of loans the Company has identified for sale. The loans are transferred from the portfolio to held for sale once the determination is made and they are carried at fair value less any costs to sell with charges being taken through the allowance for loan and lease losses. Loans : The Company grants commercial, commercial and residential mortgage and consumer loans to clients. A substantial portion of the loan portfolio is represented by commercial and commercial mortgage loans throughout communities in Will, Grundy, DuPage, Cook, and Kane counties in Illinois. The ability of the Company’s loan clients to honor their contracts is dependent upon general economic conditions and real estate values in this area. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan and lease losses, and any deferred fees or costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield. The accrual of interest is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past due status is based on contractual terms of the loan. In all cases, loans are placed on non-accrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on non-accrual or charged-off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Troubled debt restructurings : Loans are accounted for as troubled debt restructurings (“TDRs”) when a borrower is experiencing financial difficulties that leads to a restructuring of the loan, and the Company grants a “concession” to the borrower that they would not otherwise consider. These concessions include a modification of terms such as a reduction of the stated interest rate or loan balance, a reduction of accrued interest, an extension of the maturity date at an interest rate lower than a current market rate for a new loan with similar risk, or some combination thereof to facilitate repayment. TDRs are classified as impaired loans. TDRs are reviewed at the time of modification and on a quarterly basis to determine if a specific reserve is needed. The carrying amount of the loan is compared to the expected payments to be received, discounted at the loan’s original rate, or for collateral dependent loans, to the fair value of the collateral. Any shortfall is recorded as a specific reserve. Payment performance prior and subsequent to the restructuring is taken into account in assessing whether it is likely that the borrower can meet the new terms. A period of sustained repayment for at least six months generally is required for return to accrual status. This may result in the loan being returned to accrual at the time of restructuring. A loan that is modified at a market rate of interest will not be classified as a TDR in the calendar year subsequent to the restructuring if it is in compliance with the modified terms. Allowance for loan and lease losses : The allowance for loan and lease losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. When establishing the allowance for loan and lease losses, management categorizes loans into risk categories generally based on the nature of the collateral and the basis of repayment. These risk categories and the relevant risk characteristics are as follows: Construction and land development loans are underwritten utilizing feasibility studies, independent appraisal reviews, sensitivity analyses of absorption and lease rates, and financial analyses of the developers and property owners. Construction and land development loans are generally based upon estimates of costs and value associated with the completed project. Construction and land development loans often involve the disbursement of substantial funds with repayment primarily dependent upon the success of the completed project. Sources of repayment for these types of loans may be permanent loans from long-term lenders, sales of developed property, or an interim loan commitment until permanent financing is obtained. Generally, these loans have a higher risk profile than other real estate loans due to their repayment being sensitive to real estate values, interest rate changes, governmental regulation of real property, demand and supply of alternative real estate, the availability of long-term financing, and changes in general economic conditions. Commercial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably and prudently expand its business. Underwriting standards are designed to ensure repayment of loans and mitigate loss exposure. As part of the underwriting process, the Company examines current and projected cash flows to determine the ability of the borrower to repay its obligation as agreed. Commercial loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of the borrower, however, may not be as expected, and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory, and usually incorporate a personal guarantee. However, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent upon the ability of the borrower to collect amounts due from its customers. Agricultural production loans are subject to underwriting standards and processes similar to commercial loans. Commercial real estate loans are subject to underwriting standards and processes similar to commercial loans, in addition to those standards and processes specific to real estate loans. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts, and the repayment of these loans is largely dependent upon the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate market or in the general economy. The properties securing the Company’s commercial real estate portfolio are diverse in terms of type and geographic location within Will, Grundy, Dupage, Cook and Kane counties and their surrounding communities. Management monitors and evaluates commercial real estate loans based on cash flow, collateral, geography, and risk grade criteria. Farmland loans are subject to underwriting standards and processes similar to commercial real estate loans. Residential 1-4 family and consumer loans are underwritten by evaluating the credit history of the borrower, the ability of the borrower to meet the debt service requirements of the loan and total debt obligations, as well as the underlying collateral and the loan to collateral value. Underwriting standards for home equity loans are heavily influenced by statutory requirements, which include, but are not limited to, loan-to-value and affordability ratios, risk-based pricing strategies, and documentation requirements. Included in the Company’s residential 1-4 family loans are loans made to investors. These loans are underwritten using the same criteria as other residential 1-4 family loans. The allowance for loan and lease losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectibility of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan and lease losses, and may require the Company to recognize adjustments to its allowance based on their judgments of information available to them at the time of their examinations. The allowance consists of specific and general components. The specific component relates to impaired loans. For loans classified as impaired, an allowance is established when the collateral value, discounted cash flows or observable market price of the impaired loan is lower than the carrying value of that loan. The general component covers non-classified loans and is based on historical loss experience adjusted for qualitative factors. These qualitative factors consider local economic trends, concentrations, management experience, and other elements of the Company’s lending operations. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining the impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis by either the fair value of collateral if the loan is collateral dependent, the present value of expected future cash flows discounted at the loan’s effective interest rate, or the loan’s obtainable market price. Residential 1-4 family and consumer loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer loans for impairment disclosures, unless such loans are the subject of a restructuring agreement. Premises and equipment : Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed over the lesser of the remaining lease term, including renewal options controlled by the Company or the assets’ useful lives using the straight-line method. Foreclosed assets : Assets acquired through loan foreclosure or other proceedings are initially recorded at fair value less estimated selling costs at the date of foreclosure establishing a new cost basis. After foreclosure, foreclosed assets are held for sale and are carried at the lower of cost or fair value less estimated costs of disposal. Any valuation adjustments required at the date of transfer are charged to the allowance for loan and lease losses. Subsequently, unrealized losses and realized losses on sales are included in noninterest expense, while realized gains on sales are included in noninterest income. Operating results from foreclosed assets are recorded in noninterest expense. Cash surrender value of life insurance: The Bank has purchased bank-owned life insurance policies on certain executives. Bank-owned life insurance is recorded at its cash surrender value. Changes in the cash surrender values and death proceeds after recovery of cash surrender values are included in non-interest income. Transfers of financial assets : Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. The transfer of a participating interest in an entire financial asset must also meet the definition of a participating interest. A participating interest in a financial asset has all of the following characteristics: (1) from the date of transfer, it must represent a proportionate (pro rata) ownership interest in the financial asset, (2) from the date of transfer, all cash flows received, except any cash flows allocated as any compensation for servicing or other services performed, must be divided proportionately among participating interest holders in the amount equal to their share ownership, (3) the rights of each participating interest holder must have the same priority, (4) no party has the right to pledge or exchange the entire financial asset unless all participating interest holders agree to do so. Income taxes : Deferred taxes are provided using the liability method. Deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more-likely- -than-not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company follows the accounting guidance related to accounting for uncertainty in income taxes, which sets out a consistent framework to determine the appropriate level of tax reserves to maintain for uncertain tax positions. There are no uncertain tax positions as of December 31, 2016 and 2015 . Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized or sustained upon examination. The term more-likely-than-not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. The Company would recognize interest and penalties on income taxes as a component of income tax expense. The Company is no longer subject to U.S. federal or state and local income tax examinations by tax authorities for years before 2013. Stock compensation plans : The Company recognizes compensation cost relating to share-based payment transactions (stock options and restricted stock units) in the consolidated financial statements. That cost will be measured based on the grant date fair value of the equity or liability instruments issued. The Company calculates and recognizes compensation cost for all stock awards over the employees’ service period, generally defined as the vesting period. For awards with graded-vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. The Company uses a Black-Sholes model to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. Comprehensive income : Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on securities available for sale net of deferred taxes, are reported as a separate component of the equity section of the balance sheets, such items, along with net income, are components of comprehensive income. The amounts reclassified from accumulated other comprehensive income are included in “gain on sale of securities” in the consolidated statements of operations. Basic and diluted earnings per common 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 using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation and warrants 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 (amounts in thousands, except common share data). Years Ended December 31, 2016 2015 2014 Undistributed earnings allocated to common stock $ 11,107 $ 9,819 $ 5,883 Less: preferred stock dividends and discount accretion — — (526 ) Redemption of preferred shares — — 5 Net income allocated to common stock $ 11,107 $ 9,819 $ 5,362 Weighted average shares outstanding for basic earnings per common share 17,184,432 16,939,010 16,515,489 Dilutive effect of stock-based compensation and warrants 446,168 146,742 225,726 Weighted average shares outstanding for diluted earnings per common share 17,630,600 17,085,752 16,741,215 Basic income per common share $ 0.65 $ 0.58 $ 0.32 Diluted income per common share 0.64 0.57 0.32 Segment: The Company’s operations consist of one segment called community banking. Reclassifications: 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. 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. Subsequent Events The Company has evaluated subsequent events for potential recognition and/or disclosure through the date the Consolidated Financial Statements included in this Annual Report on Form 10-K were issued. Refer to Note 2 of our Consolidated Financial Statements for a description subsequent events. 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 be 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, 2018. 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. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On February 6, 2017, First Community entered into an Agreement and Plan of Merger with First Busey, pursuant to which First Community will merge into First Busey, with First Busey as the surviving corporation. It is anticipated that the Bank will be merged with and into First Busey’s bank subsidiary, Busey Bank, at a date following the completion of the Merger. At the time of the bank merger, the Bank’s banking offices will become branches of Busey Bank. The Merger is anticipated to be completed in mid-2017, and is subject to the satisfaction of customary closing conditions contained in the Agreement and Plan of Merger, including the approval of the appropriate regulatory authorities and the stockholders of First Community. The Agreement and Plan of Merger and the press release and investor presentation related to the Merger can be found on the Form 8-K filed with the SEC by First Community on February 6, 2017. |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 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 “Mazon 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 Mazon 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 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 may 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 year ended December 31, 2016, the Company incurred $1.2 million 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 |
Securities Available for Sale
Securities Available for Sale | 12 Months Ended |
Dec. 31, 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): December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Residential collateralized mortgage obligations $ 62,081 $ 45 $ 709 $ 61,417 Residential mortgage backed securities 33,701 97 557 33,241 State and political subdivisions 108,403 515 1,378 107,540 $ 204,185 $ 657 $ 2,644 $ 202,198 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 $121.1 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 December 31, 2016 and December 31, 2015 , respectively. The amortized cost and fair value of debt securities available for sale as of December 31, 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 $ 3,818 $ 3,830 Over 1 year through 5 years 32,499 32,376 Over 5 years through 10 years 25,911 25,716 Over 10 years 46,175 45,618 Residential collateralized mortgage obligations and mortgage backed securities 95,782 94,658 $ 204,185 $ 202,198 Realized gains on the sales of securities were $617,000 , $484,000 , and $912,000 during the years ended December 31, 2016, 2015, and 2014, respectively. There were $140.9 million and $85.7 million in securities with unrealized losses at December 31, 2016 and December 31, 2015 , respectively. 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 December 31, 2016 and December 31, 2015 are as follows (in thousands): Less than 12 Months 12 Months or More Total December 31, 2016 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Residential collateralized mortgage obligations $ 52,811 $ 709 $ — $ — $ 52,811 $ 709 Residential mortgage backed securities 16,217 557 — — 16,217 557 State and political subdivisions 71,904 1,378 — — 71,904 1,378 $ 140,932 $ 2,644 $ — $ — $ 140,932 $ 2,644 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 There were no securities with material unrealized losses existing longer than 12 months, and no securities with unrealized losses which management believed were other-than-temporarily impaired, at December 31, 2016 or 2015. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Loans | Loans A summary of the balances of loans follows (in thousands): December 31, 2016 December 31, 2015 Construction and Land Development $ 47,338 $ 22,082 Farmland and Agricultural Production 12,628 9,989 Residential 1-4 Family 175,978 135,864 Multifamily 36,703 34,272 Commercial Real Estate 425,985 381,098 Commercial and Industrial 281,804 179,623 Leases, net 3,290 — Consumer and other 7,967 9,417 991,693 772,345 Net deferred loan fees (75 ) (26 ) Allowance for loan and lease losses (11,684 ) (11,741 ) $ 979,934 $ 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 December 31, 2016 and December 31, 2015 (in thousands): December 31, 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 $ 47,338 $ — $ — $ — $ 47,338 $ — $ 47,338 Farmland and Agricultural Production 12,628 — — — 12,628 — 12,628 Residential 1-4 Family 175,178 27 — — 175,205 773 175,978 Multifamily 36,703 — — — 36,703 — 36,703 Commercial Real Estate Retail 89,525 — — — 89,525 3,525 93,050 Office 62,876 — — — 62,876 — 62,876 Industrial and Warehouse 75,351 — — — 75,351 — 75,351 Health Care 30,232 — — — 30,232 — 30,232 Other 163,732 92 584 — 164,408 68 164,476 Commercial and Industrial 280,282 32 — — 280,314 1,490 281,804 Leases, net 3,290 — — — 3,290 — 3,290 Consumer and other 7,957 10 — — 7,967 — 7,967 Total $ 985,092 $ 161 $ 584 $ — $ 985,837 $ 5,856 $ 991,693 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 on-going 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. 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 December 31, 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 December 31, 2016 and December 31, 2015 (in thousands): December 31, 2016 Pass Special Mention Substandard Doubtful Total Construction and Land Development $ 44,862 $ 2,476 $ — $ — $ 47,338 Farmland and Agricultural Production 12,628 — — — 12,628 Multifamily 35,934 769 — — 36,703 Commercial Real Estate Retail 81,821 — 9,148 2,081 93,050 Office 59,384 — 3,492 — 62,876 Industrial and Warehouse 74,669 682 — — 75,351 Health Care 30,232 — — — 30,232 Other 157,618 2,898 3,953 7 164,476 Commercial and Industrial 274,578 2,321 3,503 1,402 281,804 Leases, net $ 3,290 $ — $ — $ — $ 3,290 Total $ 775,016 $ 9,146 $ 20,096 $ 3,490 $ 807,748 December 31, 2016 Performing Non-performing* Total Residential 1-4 Family $ 175,205 $ 773 $ 175,978 Consumer and other 7,967 — 7,967 Total $ 183,172 $ 773 $ 183,945 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 past due 90 days or more and still on accrual. The following table provides additional detail of the activity in the allowance for loan and lease losses, by portfolio segment, for the twelve months ended December 31, 2016 and 2015 (in thousands): December 31, 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 and lease losses: Beginning balance $ 813 $ 43 $ 1,370 $ 141 $ 4,892 $ 4,286 $ — $ 196 $ 11,741 Provision for loan losses 668 — (440 ) 113 28 837 17 (157 ) 1,066 Loans charged-off — — (15 ) — (471 ) (1,905 ) — (9 ) (2,400 ) Recoveries of loans previously charged-off 68 — 33 — 47 1,125 — 4 1,277 Ending balance $ 1,549 $ 43 $ 948 $ 254 $ 4,496 $ 4,343 $ 17 $ 34 $ 11,684 December 31, 2015 Allowance for loan and lease losses: Beginning balance $ 758 $ 459 $ 1,199 $ 67 $ 6,828 $ 4,296 $ — $ 298 $ 13,905 Provision for loan losses (16 ) (416 ) 112 74 (2,623 ) 894 — (102 ) (2,077 ) Loans charged-off — — (195 ) — (548 ) (1,106 ) — (10 ) (1,859 ) Recoveries of loans previously charged-off 71 — 254 — 1,235 202 — 10 1,772 Ending balance $ 813 $ 43 $ 1,370 $ 141 $ 4,892 $ 4,286 $ — $ 196 $ 11,741 December 31, 2014 Allowance for loan and lease losses: Beginning balance $ 2,711 $ 427 $ 1,440 $ 97 $ 7,812 $ 3,183 $ — $ 150 $ 15,820 Provision for loan losses (840 ) 32 (9 ) (30 ) 560 3,119 — 168 3,000 Loans charged-off (1,186 ) — (264 ) — (2,836 ) (2,321 ) — (26 ) (6,633 ) Recoveries of loans previously charged-off 73 — 32 — 1,292 315 — 6 1,718 Ending balance $ 758 $ 459 $ 1,199 $ 67 $ 6,828 $ 4,296 $ — $ 298 $ 13,905 The following table presents the balance in the allowance for loan and lease losses and the unpaid principal balance of loans by portfolio segment and based on impairment method as of December 31, 2016 and December 31, 2015 (in thousands): December 31, 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 allowance amount allocated to: Individually evaluated for impairment $ — $ — $ 27 $ — $ — $ 417 $ — $ — $ 444 Collectively evaluated for impairment 1,549 43 921 254 4,496 3,926 17 34 11,240 Ending balance $ 1,549 $ 43 $ 948 $ 254 $ 4,496 $ 4,343 $ 17 $ 34 $ 11,684 Loans: Individually evaluated for impairment $ — $ — $ 1,285 $ — $ 7,267 $ 3,912 $ — $ — $ 12,464 Collectively evaluated for impairment 47,338 12,628 174,693 36,703 418,718 277,892 3,290 7,967 979,229 Ending balance $ 47,338 $ 12,628 $ 175,978 $ 36,703 $ 425,985 $ 281,804 $ 3,290 $ 7,967 $ 991,693 December 31, 2015 Period-ended allowance 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 year ended December 31, 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. December 31, 2016 Unpaid Principal Balance Recorded Investment Allowance for Loan and Lease Losses Allocated Average Recorded Investment Interest Income Recognized With no related allowance recorded: Construction and Land Development $ — $ — $ — $ 217 $ — Residential 1-4 Family 865 826 — 1,278 61 Commercial Real Estate Retail 3,995 3,524 — 1,362 — Other 3,808 3,743 — 3,808 127 Commercial and Industrial 4,504 3,054 — 3,532 130 With an allowance recorded: Residential 1-4 Family 459 459 27 463 23 Commercial and Industrial 1,058 858 417 1,319 — Total $ 14,689 $ 12,464 $ 444 $ 12,078 $ 341 December 31, 2015 Unpaid Principal Balance Recorded Investment Allowance for Loan and Lease Losses Allocated Average Recorded Investment Interest Income Recognized With no related allowance recorded: Residential 1-4 Family $ 1,232 $ 1,193 $ — $ 1,280 $ 61 Commercial Real Estate Office 494 494 — 502 26 Industrial and Warehouse — — — 1,441 — 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: Residential 1-4 Family 468 468 30 473 23 Multifamily — — — — — Commercial Real Estate Office — — — 64 — Commercial and Industrial 1,109 646 441 491 — Total $ 10,586 $ 9,819 $ 471 $ 12,910 $ 367 During the year ended December 31, 2016 , there were three troubled debt restructurings added as a result of the Bank making payment of real estate taxes. During the year ended December 31, 2015 , there were no troubled debt restructurings added. Troubled debt restructurings that were accruing were $2.2 million and $2.8 million as of December 31, 2016 and 2015 , respectively. Troubled debt restructurings that were non-accruing were $2.2 million and $94,000 as of December 31, 2016 and December 31, 2015 . The following presents a rollfoward activity of troubled debt restructurings (in thousands, except number of loans): Years ended December 31, 2016 2015 Recorded Investment Number of Loans Recorded Investment Number of Loans Balance, beginning $ 2,832 6 $ 5,621 $ 10 Additions to troubled debt restructurings 2,460 3 — — Removal of troubled debt restructurings (519 ) (2 ) (309 ) (1 ) Transfers to other real estate owned — — (1,486 ) (1 ) Repayments and other reductions (396 ) — (994 ) (2 ) Balance, ending $ 4,377 7 $ 2,832 6 Restructured loans are evaluated for impairment at each reporting date as part of the Company’s determination of the allowance for loan and lease losses. Executive officers, directors and principal shareholders of the Company, including their families and companies of which they are principal owners, are considered to be related parties. These related parties were loan clients of the Company in the ordinary course of business. Transfers from related party status are loans to directors who have resigned. Loans to related parties totaled as follows (in thousands): Years ended December 31, 2016 2015 Balance, beginning $ 39,176 $ 35,583 New loans 4,763 5,313 Repayments and other reductions (5,821 ) (1,720 ) Balance, ending $ 38,118 $ 39,176 No loans to executive officers, directors, and their affiliates were past due greater than 90 days at December 31, 2016 or 2015 . |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment Premises and equipment are summarized as follows (in thousands): December 31, 2016 2015 Land $ 5,078 $ 4,226 Building and building improvements 21,487 18,044 Furniture and equipment 4,867 4,238 31,432 26,508 Less: accumulated depreciation 9,218 7,979 $ 22,214 $ 18,529 Depreciation and amortization expense was $1.2 million , $1.3 million , and $1.3 million for the years ended December 31, 2016 , 2015 , and 2014, respectively. Rent expense for banking facilities was $172,000 , $169,000 , and $301,000 for the years ended December 31, 2016 , 2015 , and 2014, respectively. The Company leases office space for one of its branches as well as additional back office space. The future minimum annual rental commitments for the noncancelable leases of these spaces are as follows (in thousands): 2017 103 2018 103 2019 103 2020 103 2021 103 Thereafter 485 $ 1,000 Under the terms of these leases, the Company is required to pay its pro rata share of the cost of maintenance and real estate taxes. Certain leases also provide for increased rental payments up to 3% . |
Foreclosed Assets
Foreclosed Assets | 12 Months Ended |
Dec. 31, 2016 | |
Income Statement [Abstract] | |
Foreclosed Assets | Foreclosed Assets Foreclosed assets are presented net of an allowance for losses. An analysis of the foreclosed assets and the related provision for losses is as follows (in thousands): Years ended December 31, 2016 2015 Beginning balance $ 5,487 $ 2,530 Transfers of loans — 3,291 Acquired through Mazon acquisition 9 — Writedown to realizable value (47 ) (200 ) Gain (loss) on sale of foreclosed assets (3 ) 13 Proceeds on sale (4,721 ) (147 ) Ending balance $ 725 $ 5,487 Expenses applicable to foreclosed assets include the following: Years ended December 31, 2016 2015 2014 Writedown to realizable value $ 48 $ 200 $ 434 Operating expenses, net of rental income 40 130 219 $ 88 $ 330 $ 653 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2016 | |
Deposits [Abstract] | |
Deposits | Deposits The composition of interest-bearing deposits was as follows (in thousands): December 31, 2016 December 31, 2015 NOW and money market accounts $ 443,727 $ 336,197 Savings 64,695 36,207 Time deposit certificates of $250,000 or more 96,421 69,961 Time deposit certificates of $100,000 to $250,000 125,807 127,091 Other time deposit certificates 104,650 100,472 $ 835,300 $ 669,928 The composition of brokered deposits included in deposits was as follows (in thousands): December 31, 2016 December 31, 2015 NOW and money market accounts $ 54,971 $ 35,271 Time deposit certificates 41,169 11,874 $ 96,140 $ 47,145 At December 31, 2016 , maturities of certificates of deposit are summarized as follows (in thousands): 2017 197,883 2018 96,129 2019 21,282 2020 4,304 2021 7,280 $ 326,878 Deposits from related parties held by the Bank at December 31, 2016 and 2015 amounted to approximately $41.4 million and $38.5 million , respectively. |
Subordinated Debt
Subordinated Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Subordinated Debt | Subordinated Debt The following table summarizes subordinated debt outstanding at December 31, 2016 and 2015 (dollars in thousands): Date of issuance Call date Maturity Date Interest rate 2016 2015 September 30, 2013 September 30, 2018 September 30, 2021 8.625% $ 5,500 $ 5,500 October 31, 2014 October 31, 2019 October 31, 2022 7.00% 9,800 9,800 Total subordinated debt $ 15,300 $ 15,300 On September 30, 2013, the Company completed a private placement offering of $5.5 million of subordinated indebtedness. These securities were offered in denominations of $1,000 per note. The subordinated notes will mature on the eighth anniversary of the issuance of the notes. The Company will have the option to redeem the notes in whole or part, upon the occurrence of certain events affecting the regulatory capital or tax treatment of the notes prior to the fifth anniversary of the issuance. The holders of the notes are entitled to interest at 8.625% payable quarterly, in arrears. On or after the fifth anniversary of the effective date of the subordinated notes, the Company may redeem the notes, in whole or in part. The outstanding balance was $5.5 million at December 31, 2016 and 2015 . On October 31, 2014, the Company completed a private placement offering of $9.8 million of subordinated indebtedness. These securities were offered in denominations of $10,000 per note. The subordinated notes will mature on the eighth anniversary of the issuance of the notes. The Company will have the option to redeem the notes in whole or part, upon the occurrence of certain events affecting the regulatory capital or tax treatment of the notes prior to the fifth anniversary of the issuance. The holders of the notes are entitled to interest at 7.0% payable semi-annually, in arrears. On or after the fifth anniversary of the effective date of the subordinated notes, the Company may redeem the notes, in whole or in part. The outstanding balance was $9.8 million at December 31, 2016 and 2015 . Approximately $2.8 million of the Company’s subordinated debt is held by related parties, as of December 31, 2016 and 2015. |
Other Borrowed Funds
Other Borrowed Funds | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Other Borrowed Funds | Other Borrowed Funds The composition of other borrowed funds was as follows (in thousands): December 31, 2016 December 31, 2015 Securities sold under agreements to repurchase $ 24,153 $ 25,069 Federal Home Loan Bank Advances Maturity dates, fixed interest rate Matures January 20, 2017, 0.70% 17,000 11,000 Matures January 23, 2017, 0.70% 10,000 5,000 Secured borrowings — 11,946 $ 51,153 $ 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. Information pertaining to securities sold under agreements to repurchase as of December 31, 2016 and 2015 is as follows: December 31, 2016 December 31, 2015 Sweep repurchase agreements $ 24,153 $ 25,069 Weighted average rate 0.16 % 0.16 % Securities underlying the agreements: Carrying value $ 27,082 $ 40,101 Fair value $ 26,943 $ 39,949 The securities underlying the agreements as of December 31, 2016 and 2015 were under the Company’s control in safekeeping at third-party financial institutions. The sweep agreements generally mature within one day from the transaction date. 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 FHLB. The Bank had $409.4 million and $338.0 million of loans pledged as collateral for FHLB advances as of December 31, 2016 and December 31, 2015 , respectively. There were $27.0 million and $16.0 million in advances outstanding at December 31, 2016 and December 31, 2015 , respectively. All FHLB advances were repaid upon maturity in January 2017. On June 29, 2015, the Company entered into a credit facility with an unaffiliated bank for two credit facilities (secured borrowings). The credit facilities include a $4.0 million revolving line of credit, which had a balance of $0 and $1.9 million , at December 31, 2016 and 2015, respectively, and a term loan which had a balance of $0 and $10.1 million at December 31, 2016 and 2015, respectively. The revolving line matures in 2020 and the term loan matures in 2021. The credit facilities have an annual interest rate of 2.25% plus LIBOR, which was 2.95% at December 31, 2016 . The credit facilities are collateralized by the stock of the Company’s wholly-owned subsidiary, 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 $203.7 million and $100.1 million of loans pledged as collateral under these agreements as of December 31, 2016 and December 31, 2015 , respectively. There were no borrowings outstanding at December 31, 2016 and December 31, 2015 . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense recognized is as follows (in thousands): For years ended December 31, 2016 2015 2014 Current $ 1,601 $ 116 $ 464 Deferred 2,723 4,884 2,273 $ 4,324 $ 5,000 $ 2,737 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): For years ended December 31, 2016 2015 2014 Federal income tax at statutory rate $ 5,399 $ 5,187 $ 3,017 Increase (decrease) due to: Federal tax exempt (769 ) (606 ) (331 ) State income tax, net of federal benefit 789 758 541 Benefit of income taxed at lower rate (154 ) (148 ) (86 ) Tax exempt income (13 ) (29 ) (25 ) Cash surrender value of life insurance (208 ) (81 ) (186 ) Bargain purchase gain (652 ) — — Other (68 ) (81 ) (193 ) $ 4,324 $ 5,000 $ 2,737 Deferred tax assets and liabilities consist of (in thousands): December 31, 2016 December 31, 2015 Deferred tax assets: Allowance for loan and lease losses $ 4,570 $ 4,169 Merger expenses 182 140 Organization expenses 198 226 Net operating losses 5 3,774 Contribution carryforward 5 5 Non-qualified stock options 726 644 Restricted stock 362 — Foreclosed assets 282 315 Tax credits — 334 Unrealized losses on securities available for sale — — Other 945 135 7,275 9,742 Deferred tax liabilities: Depreciation (1,140 ) (186 ) Core deposit intangible (297 ) — Unrealized gains on securities available for sale 775 (642 ) Other — 277 (662 ) (551 ) Net deferred tax asset $ 6,613 $ 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 December 31, 2016 and 2015, the Company did not have a valuation allowance against the net deferred tax assets. The Company had a federal net operating loss carryforward of $0 and $9.3 million at December 31, 2016 and December 31, 2015 , respectively. The Company had an Illinois net operating loss carryforward of $0 and $11.1 million at December 31, 2016 and December 31, 2015, respectively. |
Stock Compensation Plans
Stock Compensation Plans | 12 Months Ended |
Dec. 31, 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 allows 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 have been 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 allows 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 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 have been 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. Under this plan 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 may not make any new award grants under the prior plans. The following table summarizes data concerning stock options (aggregate intrinsic value in thousands): December 31, 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 539,950 8.68 1,629 217,500 5.20 444 Exercised (48,520 ) 7.12 222 — — — Canceled — — — — — — Expired — — — — — — Forfeited — — — (1,400 ) 8.25 — Outstanding at end of period 1,796,934 $ 7.28 $ 7,942 1,305,504 $ 6.69 $ 1,308 Exercisable at end of period 1,238,434 $ 7.05 $ 5,764 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 December 31, 2016 . There was $7.9 million and $1.3 million in intrinsic value of the stock options outstanding at December 31, 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 $341,000 , $71,000 , and $0 of compensation expense related to the stock options for the twelve months ended December 31, 2016 , 2015, and 2014. At December 31, 2016 , there was $532,000 in compensation expense to be recognized related to outstanding stock options. Information pertaining to options outstanding at December 31, 2016 is as follows: Exercise Prices Number Outstanding Weighted Average Remaining Life (yrs) Number Exercisable $5.00 364,376 2.54 364,376 $5.20 217,500 8.01 72,500 $5.53 6,000 3.34 6,000 $6.25 25,000 3.78 25,000 $7.24 217,500 9.01 — $7.50 400,580 0.58 400,580 $8.00 4,000 2.71 4,000 $8.58 126,450 9.50 126,450 $9.25 239,528 1.38 239,528 $10.35 196,000 9.88 — 1,796,934 1,238,434 198,950 of options vested during the year ended December 31, 2016 . The Company grants restricted stock units to select officers and directors within the organization under all of 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 2016 and 2015, restricted stock units were issued with certain performance conditions for a minimum of 52,301 and 33,600 shares, respectively, and up to a maximum of 131,948 and 170,549 shares, respectively. These performance conditions were expected to be met by the end of 2016 and 2015 and the expense related to these awards was recognized over the year. The Company recognized compensation expense of $936,000 and $731,000 , respectively, for the twelve months ended December 31, 2016 and 2015 , related to restricted stock units granted under the 2008 Equity Incentive Plan, the 2013 Equity Incentive Plan, and the 2016 Equity Incentive Plan. Total unrecognized compensation expense related to restricted stock grants was approximately $52,000 as of December 31, 2016 . The following is a summary of nonvested restricted stock units: December 31, 2016 December 31, 2015 Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Outstanding at beginning of year 25,000 $ 5.14 212,020 $ 3.95 Granted 132,975 6.64 151,059 5.24 Vested (144,641 ) 6.49 (338,079 ) 4.44 Canceled — — — — Forfeited — — — — Nonvested shares, end of year 13,334 $ 5.50 25,000 $ 5.14 |
Concentrations, Commitments and
Concentrations, Commitments and Contingencies | 12 Months Ended |
Dec. 31, 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): December 31, 2016 December 31, 2015 Commitments to extend credit $ 262,408 $ 179,517 Standby letters of credit 12,164 10,353 Performance letters of credit 2,253 1,088 $ 276,825 $ 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 | 12 Months Ended |
Dec. 31, 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 December 31, 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 capital conservation buffer is subject to a three year phase-in period that began on January 1, 2016, and will be fully phased-in on January 1, 2019, at 2.5%. The required phased-in capital conservation buffer during 2016 was 0.62%. A banking organization with a conservation buffer of less than the required phased-in amount will be subject to limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers. As of December 31, 2016, the regulatory capital ratios for the Company and the Bank were sufficient to meet the fully phased-in conversation 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 December 31, 2016 and December 31, 2015 , the Company and the Bank met all capital adequacy requirements to which they were subject. 2016 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 12.77 % $ 138,772 15.79 % $ 133,247 8.625 % $ 93,751 10.00 % $ 108,697 Tier 1 capital to risk weighted assets 11.69 % 127,088 14.54 % 122,664 6.625 % 72,012 8.00 % 86,958 Tier 1 common equity to risk-weighted assets 11.69 % 127,088 14.54 % 122,664 5.125 % 55,707 6.50 % 70,653 Tier 1 leverage to average assets 10.10 % 127,088 11.71 % 122,664 4.00 % 50,340 5.00 % 62,925 Company capital ratios: Total capital to risk-weighted assets 12.99 % 141,451 14.69 % 124,159 8.625 % 93,892 N/A N/A Tier 1 capital to risk weighted assets 10.51 % 114,467 11.62 % 98,276 6.625 % 72,120 N/A N/A Tier 1 common equity to risk-weighted assets 10.51 % 114,467 11.62 % 98,276 5.125 % 55,791 N/A N/A Tier 1 leverage to average assets 9.10 % 114,467 9.36 % 98,276 4.00 % 50,323 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 | 12 Months Ended |
Dec. 31, 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 December 31, 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): December 31, 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 $ 61,417 $ — $ 61,417 $ — Residential mortgage backed securities 33,241 — 33,241 — State and political subdivisions 107,540 — 106,036 1,504 Derivative financial instruments 62 — 62 — Financial Liabilities Derivative financial instruments 62 — 62 — 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 twelve months ended December 31, 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, December 31, 2016 $ 1,504 Beginning balance, December 31, 2014 $ 1,514 Total gains or losses (realized/unrealized) included in other comprehensive income (10 ) Included in earnings — Purchases — Paydowns and maturities — Transfers in and/or out of Level 3 — Ending balance, December 31, 2015 $ 1,504 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: December 31, 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 $ 1,230 $ — $ — $ 1,230 Impaired loans 12,020 — — 12,020 Loans held for sale 1,085 — — 1,085 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 December 31, 2016 Mortgage loans held for sale $ 1,230 Secondary market pricing Selling costs — Impaired loans 12,020 Appraisal of Collateral Appraisal adjustments Selling costs 10% to 25% Loans held for sale 1,085 Secondary market pricing 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 December 31, 2016 and December 31, 2015 , approximately $3.1 million , or 32% , and $10.8 million , or 69% , 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 and lease 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 December 31, 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 $ 16,225 $ 16,225 $ 16,225 $ — $ — Interest-bearing deposits in banks 8,548 8,548 8,548 — — Securities available for sale 202,198 202,198 — 200,694 1,504 Nonmarketable equity securities 3,297 3,297 — — 3,297 Mortgage loans held for sale 1,230 1,230 — — 1,230 Loans held for sale 1,085 1,085 — — 1,085 Loans, net 979,934 980,290 — — 980,290 Accrued interest receivable 3,521 3,521 3,521 — — Derivative financial instruments 62 62 — 62 — Financial liabilities: Non-interest bearing deposits 247,856 247,856 247,856 — — Interest-bearing deposits 835,300 836,103 508,422 — 327,681 Other borrowed funds 51,153 51,110 — — 51,110 Subordinated debt 15,300 16,182 — — 16,182 Accrued interest payable 566 566 566 — — Derivative financial instruments 62 62 — 62 — 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 319 319 — 319 — Financial liabilities: Non-interest bearing deposits 196,063 196,063 196,063 — — Interest-bearing deposits 669,928 668,835 372,404 — 296,431 Other borrowed funds 53,015 52,566 52,566 — — Subordinated debt 15,300 15,164 — — 15,164 Accrued interest payable 545 545 545 — — Derivative financial instruments 319 319 — 319 — |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 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 December 31, 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 $62,000 and $95,000 as of December 31, 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 $33,000 , $219,000 , and $10,000 during the years ended December 31, 2016 , December 31, 2015 , and December 31, 2014, respectively. |
Unaudited Interim Financial Dat
Unaudited Interim Financial Data | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Interim Financial Data | Unaudited Interim Financial Data The following table reflects summarized unaudited quarterly data fro the periods described (dollars in thousands, except per share data): 2016 December September June March Total interest income $ 11,749 $ 11,313 $ 10,087 $ 9,628 Total interest expense 1,508 1,490 1,373 1,330 Net interest income 10,241 9,823 8,714 8,298 Provision for loan losses 183 383 500 — Total noninterest income 898 2,773 1,241 555 Total noninterest expense 6,919 7,059 6,132 5,936 Income before income taxes 4,037 5,154 3,323 2,917 Income taxes 1,358 1,019 1,058 889 Net income $ 2,679 $ 4,135 $ 2,265 $ 2,028 Basic earnings per share $ 0.16 $ 0.24 $ 0.13 $ 0.12 Diluted earnings per share $ 0.15 $ 0.24 $ 0.13 $ 0.12 2015 December September June March Total interest income $ 9,539 $ 9,340 $ 9,067 $ 8,779 Total interest expense 1,369 1,368 1,607 1,594 Net interest income 8,170 7,972 7,460 7,185 Provision for loan losses (516 ) (812 ) (749 ) — Total noninterest income 762 769 521 445 Total noninterest expense 5,050 5,136 5,199 5,157 Income before income taxes 4,398 4,418 3,531 2,437 Income taxes 1,475 1,471 1,189 867 Net income $ 2,923 $ 2,947 $ 2,342 $ 1,606 Basic earnings per share $ 0.17 $ 0.17 $ 0.14 $ 0.10 Diluted earnings per share $ 0.17 $ 0.17 $ 0.14 $ 0.09 |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Principles of consolidation | The consolidated financial statements include the accounts of First Community Financial Partners, Inc. (the “Company” or “First Community”) and its subsidiaries, including its wholly-owned bank subsidiary, First Community Financial Bank (the “Bank”), based in Joliet, Illinois, and other wholly-owned real estate holding entities. All significant intercompany balances and transactions have been eliminated in consolidation. |
Use of estimates | In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan and lease losses, valuation of foreclosed assets, and the valuation of deferred tax assets. |
Presentation of cash flows | For purposes of the statements of cash flows, cash and cash equivalents include cash on hand, cash items and balances due from banks. Cash flows from federal funds sold, interest bearing deposits in banks, loans originated by the Company, deposits and other borrowings are reported as net increases or decreases. |
Interest bearing deposits in banks, Securities and Non-marketable equity securities | Interest bearing deposits in banks mature within one year and are carried at cost. Securities : 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. Declines in the fair value of individual securities available for sale below their cost that are related to credit losses are deemed to be other-than-temporary and reflected in earnings as realized losses. In determining whether other-than-temporary impairment exists, management considers many factors, including (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent or requirement of the Company to sell its investment in the issuer prior to any anticipated recovery in fair value. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Non-marketable equity securities : The Company owns common stock issued by the FHLB. No ready market exists for these stocks, and they have no quoted market values. The Bank, as a member of the FHLB, is required to maintain an investment in the capital stock of the FHLB. The stock is redeemable at par value by the FHLB, and is therefore, carried at cost and periodically evaluated for impairment. The Company records dividends in income on the date received. |
Loans held for sale | Loans held for sale consists of loans the Company has identified for sale. The loans are transferred from the portfolio to held for sale once the determination is made and they are carried at fair value less any costs to sell with charges being taken through the allowance for loan and lease losses. |
Loans | The Company grants commercial, commercial and residential mortgage and consumer loans to clients. A substantial portion of the loan portfolio is represented by commercial and commercial mortgage loans throughout communities in Will, Grundy, DuPage, Cook, and Kane counties in Illinois. The ability of the Company’s loan clients to honor their contracts is dependent upon general economic conditions and real estate values in this area. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan and lease losses, and any deferred fees or costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield. The accrual of interest is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past due status is based on contractual terms of the loan. In all cases, loans are placed on non-accrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on non-accrual or charged-off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. |
Troubled debt restructurings | Loans are accounted for as troubled debt restructurings (“TDRs”) when a borrower is experiencing financial difficulties that leads to a restructuring of the loan, and the Company grants a “concession” to the borrower that they would not otherwise consider. These concessions include a modification of terms such as a reduction of the stated interest rate or loan balance, a reduction of accrued interest, an extension of the maturity date at an interest rate lower than a current market rate for a new loan with similar risk, or some combination thereof to facilitate repayment. TDRs are classified as impaired loans. TDRs are reviewed at the time of modification and on a quarterly basis to determine if a specific reserve is needed. The carrying amount of the loan is compared to the expected payments to be received, discounted at the loan’s original rate, or for collateral dependent loans, to the fair value of the collateral. Any shortfall is recorded as a specific reserve. Payment performance prior and subsequent to the restructuring is taken into account in assessing whether it is likely that the borrower can meet the new terms. A period of sustained repayment for at least six months generally is required for return to accrual status. This may result in the loan being returned to accrual at the time of restructuring. A loan that is modified at a market rate of interest will not be classified as a TDR in the calendar year subsequent to the restructuring if it is in compliance with the modified terms. |
Allowance for loan losses | The allowance for loan and lease losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. When establishing the allowance for loan and lease losses, management categorizes loans into risk categories generally based on the nature of the collateral and the basis of repayment. These risk categories and the relevant risk characteristics are as follows: Construction and land development loans are underwritten utilizing feasibility studies, independent appraisal reviews, sensitivity analyses of absorption and lease rates, and financial analyses of the developers and property owners. Construction and land development loans are generally based upon estimates of costs and value associated with the completed project. Construction and land development loans often involve the disbursement of substantial funds with repayment primarily dependent upon the success of the completed project. Sources of repayment for these types of loans may be permanent loans from long-term lenders, sales of developed property, or an interim loan commitment until permanent financing is obtained. Generally, these loans have a higher risk profile than other real estate loans due to their repayment being sensitive to real estate values, interest rate changes, governmental regulation of real property, demand and supply of alternative real estate, the availability of long-term financing, and changes in general economic conditions. Commercial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably and prudently expand its business. Underwriting standards are designed to ensure repayment of loans and mitigate loss exposure. As part of the underwriting process, the Company examines current and projected cash flows to determine the ability of the borrower to repay its obligation as agreed. Commercial loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of the borrower, however, may not be as expected, and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory, and usually incorporate a personal guarantee. However, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent upon the ability of the borrower to collect amounts due from its customers. Agricultural production loans are subject to underwriting standards and processes similar to commercial loans. Commercial real estate loans are subject to underwriting standards and processes similar to commercial loans, in addition to those standards and processes specific to real estate loans. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts, and the repayment of these loans is largely dependent upon the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate market or in the general economy. The properties securing the Company’s commercial real estate portfolio are diverse in terms of type and geographic location within Will, Grundy, Dupage, Cook and Kane counties and their surrounding communities. Management monitors and evaluates commercial real estate loans based on cash flow, collateral, geography, and risk grade criteria. Farmland loans are subject to underwriting standards and processes similar to commercial real estate loans. Residential 1-4 family and consumer loans are underwritten by evaluating the credit history of the borrower, the ability of the borrower to meet the debt service requirements of the loan and total debt obligations, as well as the underlying collateral and the loan to collateral value. Underwriting standards for home equity loans are heavily influenced by statutory requirements, which include, but are not limited to, loan-to-value and affordability ratios, risk-based pricing strategies, and documentation requirements. Included in the Company’s residential 1-4 family loans are loans made to investors. These loans are underwritten using the same criteria as other residential 1-4 family loans. The allowance for loan and lease losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectibility of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan and lease losses, and may require the Company to recognize adjustments to its allowance based on their judgments of information available to them at the time of their examinations. The allowance consists of specific and general components. The specific component relates to impaired loans. For loans classified as impaired, an allowance is established when the collateral value, discounted cash flows or observable market price of the impaired loan is lower than the carrying value of that loan. The general component covers non-classified loans and is based on historical loss experience adjusted for qualitative factors. These qualitative factors consider local economic trends, concentrations, management experience, and other elements of the Company’s lending operations. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining the impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis by either the fair value of collateral if the loan is collateral dependent, the present value of expected future cash flows discounted at the loan’s effective interest rate, or the loan’s obtainable market price. Residential 1-4 family and consumer loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer loans for impairment disclosures, unless such loans are the subject of a restructuring agreement. |
Premises and equipment | Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed over the lesser of the remaining lease term, including renewal options controlled by the Company or the assets’ useful lives using the straight-line method. |
Foreclosed assets | Assets acquired through loan foreclosure or other proceedings are initially recorded at fair value less estimated selling costs at the date of foreclosure establishing a new cost basis. After foreclosure, foreclosed assets are held for sale and are carried at the lower of cost or fair value less estimated costs of disposal. Any valuation adjustments required at the date of transfer are charged to the allowance for loan and lease losses. Subsequently, unrealized losses and realized losses on sales are included in noninterest expense, while realized gains on sales are included in noninterest income. Operating results from foreclosed assets are recorded in noninterest expense. |
Cash surrender value of life insurance | The Bank has purchased bank-owned life insurance policies on certain executives. Bank-owned life insurance is recorded at its cash surrender value. Changes in the cash surrender values and death proceeds after recovery of cash surrender values are included in non-interest income. |
Transfers of financial assets | Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. The transfer of a participating interest in an entire financial asset must also meet the definition of a participating interest. A participating interest in a financial asset has all of the following characteristics: (1) from the date of transfer, it must represent a proportionate (pro rata) ownership interest in the financial asset, (2) from the date of transfer, all cash flows received, except any cash flows allocated as any compensation for servicing or other services performed, must be divided proportionately among participating interest holders in the amount equal to their share ownership, (3) the rights of each participating interest holder must have the same priority, (4) no party has the right to pledge or exchange the entire financial asset unless all participating interest holders agree to do so. |
Income taxes | Deferred taxes are provided using the liability method. Deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more-likely- -than-not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company follows the accounting guidance related to accounting for uncertainty in income taxes, which sets out a consistent framework to determine the appropriate level of tax reserves to maintain for uncertain tax positions. There are no uncertain tax positions as of December 31, 2016 and 2015 . Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized or sustained upon examination. The term more-likely-than-not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. The Company would recognize interest and penalties on income taxes as a component of income tax expense. The Company is no longer subject to U.S. federal or state and local income tax examinations by tax authorities for years before 2013. |
Stock compensation plans | The Company recognizes compensation cost relating to share-based payment transactions (stock options and restricted stock units) in the consolidated financial statements. That cost will be measured based on the grant date fair value of the equity or liability instruments issued. The Company calculates and recognizes compensation cost for all stock awards over the employees’ service period, generally defined as the vesting period. For awards with graded-vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. The Company uses a Black-Sholes model to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. |
Comprehensive income | Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on securities available for sale net of deferred taxes, are reported as a separate component of the equity section of the balance sheets, such items, along with net income, are components of comprehensive income. The amounts reclassified from accumulated other comprehensive income are included in “gain on sale of securities” in the consolidated statements of operations. |
Basic and diluted earnings per common 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 using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation and warrants using the treasury stock method. |
Segment | The Company’s operations consist of one segment called community banking. |
Reclassifications | 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. |
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. |
Subsequent Events | The Company has evaluated subsequent events for potential recognition and/or disclosure through the date the Consolidated Financial Statements included in this Annual Report on Form 10-K were issued. Refer to Note 2 of our Consolidated Financial Statements for a description subsequent events. |
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 be 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, 2018. 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. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [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 (amounts in thousands, except common share data). Years Ended December 31, 2016 2015 2014 Undistributed earnings allocated to common stock $ 11,107 $ 9,819 $ 5,883 Less: preferred stock dividends and discount accretion — — (526 ) Redemption of preferred shares — — 5 Net income allocated to common stock $ 11,107 $ 9,819 $ 5,362 Weighted average shares outstanding for basic earnings per common share 17,184,432 16,939,010 16,515,489 Dilutive effect of stock-based compensation and warrants 446,168 146,742 225,726 Weighted average shares outstanding for diluted earnings per common share 17,630,600 17,085,752 16,741,215 Basic income per common share $ 0.65 $ 0.58 $ 0.32 Diluted income per common share 0.64 0.57 0.32 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Fair Value of 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 |
Securities Available for Sale (
Securities Available for Sale (Tables) | 12 Months Ended |
Dec. 31, 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): December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Residential collateralized mortgage obligations $ 62,081 $ 45 $ 709 $ 61,417 Residential mortgage backed securities 33,701 97 557 33,241 State and political subdivisions 108,403 515 1,378 107,540 $ 204,185 $ 657 $ 2,644 $ 202,198 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 |
Investments Classified by Contractual Maturity Date | Therefore, these securities are segregated in the following maturity summary: Amortized Fair Cost Value Within 1 year $ 3,818 $ 3,830 Over 1 year through 5 years 32,499 32,376 Over 5 years through 10 years 25,911 25,716 Over 10 years 46,175 45,618 Residential collateralized mortgage obligations and mortgage backed securities 95,782 94,658 $ 204,185 $ 202,198 |
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 December 31, 2016 and December 31, 2015 are as follows (in thousands): Less than 12 Months 12 Months or More Total December 31, 2016 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Residential collateralized mortgage obligations $ 52,811 $ 709 $ — $ — $ 52,811 $ 709 Residential mortgage backed securities 16,217 557 — — 16,217 557 State and political subdivisions 71,904 1,378 — — 71,904 1,378 $ 140,932 $ 2,644 $ — $ — $ 140,932 $ 2,644 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 (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | A summary of the balances of loans follows (in thousands): December 31, 2016 December 31, 2015 Construction and Land Development $ 47,338 $ 22,082 Farmland and Agricultural Production 12,628 9,989 Residential 1-4 Family 175,978 135,864 Multifamily 36,703 34,272 Commercial Real Estate 425,985 381,098 Commercial and Industrial 281,804 179,623 Leases, net 3,290 — Consumer and other 7,967 9,417 991,693 772,345 Net deferred loan fees (75 ) (26 ) Allowance for loan and lease losses (11,684 ) (11,741 ) $ 979,934 $ 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 December 31, 2016 and December 31, 2015 (in thousands): December 31, 2016 Pass Special Mention Substandard Doubtful Total Construction and Land Development $ 44,862 $ 2,476 $ — $ — $ 47,338 Farmland and Agricultural Production 12,628 — — — 12,628 Multifamily 35,934 769 — — 36,703 Commercial Real Estate Retail 81,821 — 9,148 2,081 93,050 Office 59,384 — 3,492 — 62,876 Industrial and Warehouse 74,669 682 — — 75,351 Health Care 30,232 — — — 30,232 Other 157,618 2,898 3,953 7 164,476 Commercial and Industrial 274,578 2,321 3,503 1,402 281,804 Leases, net $ 3,290 $ — $ — $ — $ 3,290 Total $ 775,016 $ 9,146 $ 20,096 $ 3,490 $ 807,748 December 31, 2016 Performing Non-performing* Total Residential 1-4 Family $ 175,205 $ 773 $ 175,978 Consumer and other 7,967 — 7,967 Total $ 183,172 $ 773 $ 183,945 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 past due 90 days or more 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 December 31, 2016 and December 31, 2015 (in thousands): December 31, 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 $ 47,338 $ — $ — $ — $ 47,338 $ — $ 47,338 Farmland and Agricultural Production 12,628 — — — 12,628 — 12,628 Residential 1-4 Family 175,178 27 — — 175,205 773 175,978 Multifamily 36,703 — — — 36,703 — 36,703 Commercial Real Estate Retail 89,525 — — — 89,525 3,525 93,050 Office 62,876 — — — 62,876 — 62,876 Industrial and Warehouse 75,351 — — — 75,351 — 75,351 Health Care 30,232 — — — 30,232 — 30,232 Other 163,732 92 584 — 164,408 68 164,476 Commercial and Industrial 280,282 32 — — 280,314 1,490 281,804 Leases, net 3,290 — — — 3,290 — 3,290 Consumer and other 7,957 10 — — 7,967 — 7,967 Total $ 985,092 $ 161 $ 584 $ — $ 985,837 $ 5,856 $ 991,693 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 Credit Losses on Financing Receivables | The following table provides additional detail of the activity in the allowance for loan and lease losses, by portfolio segment, for the twelve months ended December 31, 2016 and 2015 (in thousands): December 31, 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 and lease losses: Beginning balance $ 813 $ 43 $ 1,370 $ 141 $ 4,892 $ 4,286 $ — $ 196 $ 11,741 Provision for loan losses 668 — (440 ) 113 28 837 17 (157 ) 1,066 Loans charged-off — — (15 ) — (471 ) (1,905 ) — (9 ) (2,400 ) Recoveries of loans previously charged-off 68 — 33 — 47 1,125 — 4 1,277 Ending balance $ 1,549 $ 43 $ 948 $ 254 $ 4,496 $ 4,343 $ 17 $ 34 $ 11,684 December 31, 2015 Allowance for loan and lease losses: Beginning balance $ 758 $ 459 $ 1,199 $ 67 $ 6,828 $ 4,296 $ — $ 298 $ 13,905 Provision for loan losses (16 ) (416 ) 112 74 (2,623 ) 894 — (102 ) (2,077 ) Loans charged-off — — (195 ) — (548 ) (1,106 ) — (10 ) (1,859 ) Recoveries of loans previously charged-off 71 — 254 — 1,235 202 — 10 1,772 Ending balance $ 813 $ 43 $ 1,370 $ 141 $ 4,892 $ 4,286 $ — $ 196 $ 11,741 December 31, 2014 Allowance for loan and lease losses: Beginning balance $ 2,711 $ 427 $ 1,440 $ 97 $ 7,812 $ 3,183 $ — $ 150 $ 15,820 Provision for loan losses (840 ) 32 (9 ) (30 ) 560 3,119 — 168 3,000 Loans charged-off (1,186 ) — (264 ) — (2,836 ) (2,321 ) — (26 ) (6,633 ) Recoveries of loans previously charged-off 73 — 32 — 1,292 315 — 6 1,718 Ending balance $ 758 $ 459 $ 1,199 $ 67 $ 6,828 $ 4,296 $ — $ 298 $ 13,905 The following table presents the balance in the allowance for loan and lease losses and the unpaid principal balance of loans by portfolio segment and based on impairment method as of December 31, 2016 and December 31, 2015 (in thousands): December 31, 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 allowance amount allocated to: Individually evaluated for impairment $ — $ — $ 27 $ — $ — $ 417 $ — $ — $ 444 Collectively evaluated for impairment 1,549 43 921 254 4,496 3,926 17 34 11,240 Ending balance $ 1,549 $ 43 $ 948 $ 254 $ 4,496 $ 4,343 $ 17 $ 34 $ 11,684 Loans: Individually evaluated for impairment $ — $ — $ 1,285 $ — $ 7,267 $ 3,912 $ — $ — $ 12,464 Collectively evaluated for impairment 47,338 12,628 174,693 36,703 418,718 277,892 3,290 7,967 979,229 Ending balance $ 47,338 $ 12,628 $ 175,978 $ 36,703 $ 425,985 $ 281,804 $ 3,290 $ 7,967 $ 991,693 December 31, 2015 Period-ended allowance 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 interest income recognized column represents all interest income reported after the loan became impaired. December 31, 2016 Unpaid Principal Balance Recorded Investment Allowance for Loan and Lease Losses Allocated Average Recorded Investment Interest Income Recognized With no related allowance recorded: Construction and Land Development $ — $ — $ — $ 217 $ — Residential 1-4 Family 865 826 — 1,278 61 Commercial Real Estate Retail 3,995 3,524 — 1,362 — Other 3,808 3,743 — 3,808 127 Commercial and Industrial 4,504 3,054 — 3,532 130 With an allowance recorded: Residential 1-4 Family 459 459 27 463 23 Commercial and Industrial 1,058 858 417 1,319 — Total $ 14,689 $ 12,464 $ 444 $ 12,078 $ 341 December 31, 2015 Unpaid Principal Balance Recorded Investment Allowance for Loan and Lease Losses Allocated Average Recorded Investment Interest Income Recognized With no related allowance recorded: Residential 1-4 Family $ 1,232 $ 1,193 $ — $ 1,280 $ 61 Commercial Real Estate Office 494 494 — 502 26 Industrial and Warehouse — — — 1,441 — 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: Residential 1-4 Family 468 468 30 473 23 Multifamily — — — — — Commercial Real Estate Office — — — 64 — Commercial and Industrial 1,109 646 441 491 — Total $ 10,586 $ 9,819 $ 471 $ 12,910 $ 367 |
Schedule of Roll Forward Activity of Trouble Debt Restructuring Loans | The following presents a rollfoward activity of troubled debt restructurings (in thousands, except number of loans): Years ended December 31, 2016 2015 Recorded Investment Number of Loans Recorded Investment Number of Loans Balance, beginning $ 2,832 6 $ 5,621 $ 10 Additions to troubled debt restructurings 2,460 3 — — Removal of troubled debt restructurings (519 ) (2 ) (309 ) (1 ) Transfers to other real estate owned — — (1,486 ) (1 ) Repayments and other reductions (396 ) — (994 ) (2 ) Balance, ending $ 4,377 7 $ 2,832 6 |
Loans to Related Parties | Loans to related parties totaled as follows (in thousands): Years ended December 31, 2016 2015 Balance, beginning $ 39,176 $ 35,583 New loans 4,763 5,313 Repayments and other reductions (5,821 ) (1,720 ) Balance, ending $ 38,118 $ 39,176 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment Summary | Premises and equipment are summarized as follows (in thousands): December 31, 2016 2015 Land $ 5,078 $ 4,226 Building and building improvements 21,487 18,044 Furniture and equipment 4,867 4,238 31,432 26,508 Less: accumulated depreciation 9,218 7,979 $ 22,214 $ 18,529 |
Schedule of Future Minimum Rental Payments for Operating Leases | The future minimum annual rental commitments for the noncancelable leases of these spaces are as follows (in thousands): 2017 103 2018 103 2019 103 2020 103 2021 103 Thereafter 485 $ 1,000 |
Foreclosed Assets (Tables)
Foreclosed Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Statement [Abstract] | |
Analysis of the Foreclosed Assets and the Related Provision Losses | An analysis of the foreclosed assets and the related provision for losses is as follows (in thousands): Years ended December 31, 2016 2015 Beginning balance $ 5,487 $ 2,530 Transfers of loans — 3,291 Acquired through Mazon acquisition 9 — Writedown to realizable value (47 ) (200 ) Gain (loss) on sale of foreclosed assets (3 ) 13 Proceeds on sale (4,721 ) (147 ) Ending balance $ 725 $ 5,487 |
Expenses Applicable to Foreclosed Assets | Expenses applicable to foreclosed assets include the following: Years ended December 31, 2016 2015 2014 Writedown to realizable value $ 48 $ 200 $ 434 Operating expenses, net of rental income 40 130 219 $ 88 $ 330 $ 653 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deposits [Abstract] | |
Composition of Interest-bearing Deposits | The composition of interest-bearing deposits was as follows (in thousands): December 31, 2016 December 31, 2015 NOW and money market accounts $ 443,727 $ 336,197 Savings 64,695 36,207 Time deposit certificates of $250,000 or more 96,421 69,961 Time deposit certificates of $100,000 to $250,000 125,807 127,091 Other time deposit certificates 104,650 100,472 $ 835,300 $ 669,928 |
Composition of Brokered Deposits | The composition of brokered deposits included in deposits was as follows (in thousands): December 31, 2016 December 31, 2015 NOW and money market accounts $ 54,971 $ 35,271 Time deposit certificates 41,169 11,874 $ 96,140 $ 47,145 |
Maturities of Certificates of Deposit | At December 31, 2016 , maturities of certificates of deposit are summarized as follows (in thousands): 2017 197,883 2018 96,129 2019 21,282 2020 4,304 2021 7,280 $ 326,878 |
Subordinated Debt (Tables)
Subordinated Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Summary of Subordinated Debt Outstanding | The following table summarizes subordinated debt outstanding at December 31, 2016 and 2015 (dollars in thousands): Date of issuance Call date Maturity Date Interest rate 2016 2015 September 30, 2013 September 30, 2018 September 30, 2021 8.625% $ 5,500 $ 5,500 October 31, 2014 October 31, 2019 October 31, 2022 7.00% 9,800 9,800 Total subordinated debt $ 15,300 $ 15,300 |
Other Borrowed Funds (Tables)
Other Borrowed Funds (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Other Borrowed Funds | The composition of other borrowed funds was as follows (in thousands): December 31, 2016 December 31, 2015 Securities sold under agreements to repurchase $ 24,153 $ 25,069 Federal Home Loan Bank Advances Maturity dates, fixed interest rate Matures January 20, 2017, 0.70% 17,000 11,000 Matures January 23, 2017, 0.70% 10,000 5,000 Secured borrowings — 11,946 $ 51,153 $ 53,015 |
Schedule of Information Pertaining to Securities Sold Under Agreements to Repurchase | Information pertaining to securities sold under agreements to repurchase as of December 31, 2016 and 2015 is as follows: December 31, 2016 December 31, 2015 Sweep repurchase agreements $ 24,153 $ 25,069 Weighted average rate 0.16 % 0.16 % Securities underlying the agreements: Carrying value $ 27,082 $ 40,101 Fair value $ 26,943 $ 39,949 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense recognized is as follows (in thousands): For years ended December 31, 2016 2015 2014 Current $ 1,601 $ 116 $ 464 Deferred 2,723 4,884 2,273 $ 4,324 $ 5,000 $ 2,737 |
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): For years ended December 31, 2016 2015 2014 Federal income tax at statutory rate $ 5,399 $ 5,187 $ 3,017 Increase (decrease) due to: Federal tax exempt (769 ) (606 ) (331 ) State income tax, net of federal benefit 789 758 541 Benefit of income taxed at lower rate (154 ) (148 ) (86 ) Tax exempt income (13 ) (29 ) (25 ) Cash surrender value of life insurance (208 ) (81 ) (186 ) Bargain purchase gain (652 ) — — Other (68 ) (81 ) (193 ) $ 4,324 $ 5,000 $ 2,737 |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities consist of (in thousands): December 31, 2016 December 31, 2015 Deferred tax assets: Allowance for loan and lease losses $ 4,570 $ 4,169 Merger expenses 182 140 Organization expenses 198 226 Net operating losses 5 3,774 Contribution carryforward 5 5 Non-qualified stock options 726 644 Restricted stock 362 — Foreclosed assets 282 315 Tax credits — 334 Unrealized losses on securities available for sale — — Other 945 135 7,275 9,742 Deferred tax liabilities: Depreciation (1,140 ) (186 ) Core deposit intangible (297 ) — Unrealized gains on securities available for sale 775 (642 ) Other — 277 (662 ) (551 ) Net deferred tax asset $ 6,613 $ 9,191 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | The following table summarizes data concerning stock options (aggregate intrinsic value in thousands): December 31, 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 539,950 8.68 1,629 217,500 5.20 444 Exercised (48,520 ) 7.12 222 — — — Canceled — — — — — — Expired — — — — — — Forfeited — — — (1,400 ) 8.25 — Outstanding at end of period 1,796,934 $ 7.28 $ 7,942 1,305,504 $ 6.69 $ 1,308 Exercisable at end of period 1,238,434 $ 7.05 $ 5,764 1,088,004 $ 6.99 $ 864 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable | Information pertaining to options outstanding at December 31, 2016 is as follows: Exercise Prices Number Outstanding Weighted Average Remaining Life (yrs) Number Exercisable $5.00 364,376 2.54 364,376 $5.20 217,500 8.01 72,500 $5.53 6,000 3.34 6,000 $6.25 25,000 3.78 25,000 $7.24 217,500 9.01 — $7.50 400,580 0.58 400,580 $8.00 4,000 2.71 4,000 $8.58 126,450 9.50 126,450 $9.25 239,528 1.38 239,528 $10.35 196,000 9.88 — 1,796,934 1,238,434 |
Schedule of Nonvested Restricted Stock Units Activity | The following is a summary of nonvested restricted stock units: December 31, 2016 December 31, 2015 Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Outstanding at beginning of year 25,000 $ 5.14 212,020 $ 3.95 Granted 132,975 6.64 151,059 5.24 Vested (144,641 ) 6.49 (338,079 ) 4.44 Canceled — — — — Forfeited — — — — Nonvested shares, end of year 13,334 $ 5.50 25,000 $ 5.14 |
Concentrations, Commitments a39
Concentrations, Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Commitments | A summary of the Company’s commitments is as follows (in thousands): December 31, 2016 December 31, 2015 Commitments to extend credit $ 262,408 $ 179,517 Standby letters of credit 12,164 10,353 Performance letters of credit 2,253 1,088 $ 276,825 $ 190,958 |
Capital and Regulatory Matters
Capital and Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Regulatory Capital Requirements [Abstract] | |
Schedule of Compliance with Capital Adequacy Requirements | 2016 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 12.77 % $ 138,772 15.79 % $ 133,247 8.625 % $ 93,751 10.00 % $ 108,697 Tier 1 capital to risk weighted assets 11.69 % 127,088 14.54 % 122,664 6.625 % 72,012 8.00 % 86,958 Tier 1 common equity to risk-weighted assets 11.69 % 127,088 14.54 % 122,664 5.125 % 55,707 6.50 % 70,653 Tier 1 leverage to average assets 10.10 % 127,088 11.71 % 122,664 4.00 % 50,340 5.00 % 62,925 Company capital ratios: Total capital to risk-weighted assets 12.99 % 141,451 14.69 % 124,159 8.625 % 93,892 N/A N/A Tier 1 capital to risk weighted assets 10.51 % 114,467 11.62 % 98,276 6.625 % 72,120 N/A N/A Tier 1 common equity to risk-weighted assets 10.51 % 114,467 11.62 % 98,276 5.125 % 55,791 N/A N/A Tier 1 leverage to average assets 9.10 % 114,467 9.36 % 98,276 4.00 % 50,323 N/A N/A |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 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): December 31, 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 $ 61,417 $ — $ 61,417 $ — Residential mortgage backed securities 33,241 — 33,241 — State and political subdivisions 107,540 — 106,036 1,504 Derivative financial instruments 62 — 62 — Financial Liabilities Derivative financial instruments 62 — 62 — 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, December 31, 2016 $ 1,504 Beginning balance, December 31, 2014 $ 1,514 Total gains or losses (realized/unrealized) included in other comprehensive income (10 ) Included in earnings — Purchases — Paydowns and maturities — Transfers in and/or out of Level 3 — Ending balance, December 31, 2015 $ 1,504 |
Fair Value Measurements, Nonrecurring | Assets measured at fair value on a nonrecurring basis are set forth below: December 31, 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 $ 1,230 $ — $ — $ 1,230 Impaired loans 12,020 — — 12,020 Loans held for sale 1,085 — — 1,085 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 December 31, 2016 Mortgage loans held for sale $ 1,230 Secondary market pricing Selling costs — Impaired loans 12,020 Appraisal of Collateral Appraisal adjustments Selling costs 10% to 25% Loans held for sale 1,085 Secondary market pricing 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 December 31, 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 $ 16,225 $ 16,225 $ 16,225 $ — $ — Interest-bearing deposits in banks 8,548 8,548 8,548 — — Securities available for sale 202,198 202,198 — 200,694 1,504 Nonmarketable equity securities 3,297 3,297 — — 3,297 Mortgage loans held for sale 1,230 1,230 — — 1,230 Loans held for sale 1,085 1,085 — — 1,085 Loans, net 979,934 980,290 — — 980,290 Accrued interest receivable 3,521 3,521 3,521 — — Derivative financial instruments 62 62 — 62 — Financial liabilities: Non-interest bearing deposits 247,856 247,856 247,856 — — Interest-bearing deposits 835,300 836,103 508,422 — 327,681 Other borrowed funds 51,153 51,110 — — 51,110 Subordinated debt 15,300 16,182 — — 16,182 Accrued interest payable 566 566 566 — — Derivative financial instruments 62 62 — 62 — 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 319 319 — 319 — Financial liabilities: Non-interest bearing deposits 196,063 196,063 196,063 — — Interest-bearing deposits 669,928 668,835 372,404 — 296,431 Other borrowed funds 53,015 52,566 52,566 — — Subordinated debt 15,300 15,164 — — 15,164 Accrued interest payable 545 545 545 — — Derivative financial instruments 319 319 — 319 — |
Unaudited Interim Financial D42
Unaudited Interim Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of unaudited interim financial data | The following table reflects summarized unaudited quarterly data fro the periods described (dollars in thousands, except per share data): 2016 December September June March Total interest income $ 11,749 $ 11,313 $ 10,087 $ 9,628 Total interest expense 1,508 1,490 1,373 1,330 Net interest income 10,241 9,823 8,714 8,298 Provision for loan losses 183 383 500 — Total noninterest income 898 2,773 1,241 555 Total noninterest expense 6,919 7,059 6,132 5,936 Income before income taxes 4,037 5,154 3,323 2,917 Income taxes 1,358 1,019 1,058 889 Net income $ 2,679 $ 4,135 $ 2,265 $ 2,028 Basic earnings per share $ 0.16 $ 0.24 $ 0.13 $ 0.12 Diluted earnings per share $ 0.15 $ 0.24 $ 0.13 $ 0.12 2015 December September June March Total interest income $ 9,539 $ 9,340 $ 9,067 $ 8,779 Total interest expense 1,369 1,368 1,607 1,594 Net interest income 8,170 7,972 7,460 7,185 Provision for loan losses (516 ) (812 ) (749 ) — Total noninterest income 762 769 521 445 Total noninterest expense 5,050 5,136 5,199 5,157 Income before income taxes 4,398 4,418 3,531 2,437 Income taxes 1,475 1,471 1,189 867 Net income $ 2,923 $ 2,947 $ 2,342 $ 1,606 Basic earnings per share $ 0.17 $ 0.17 $ 0.14 $ 0.10 Diluted earnings per share $ 0.17 $ 0.17 $ 0.14 $ 0.09 |
Summary of Significant Accoun43
Summary of Significant Accounting Policies (Reconciliation of the number of shares used in the calculation of basic and diluted earnings per common share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | |||||||||||
Undistributed earnings allocated to common stock | $ 2,679 | $ 4,135 | $ 2,265 | $ 2,028 | $ 2,923 | $ 2,947 | $ 2,342 | $ 1,606 | $ 11,107 | $ 9,819 | $ 5,883 |
Preferred stock dividends and discount accretion | 0 | 0 | (526) | ||||||||
Redemption of preferred shares | 0 | 0 | 5 | ||||||||
Net income allocated to common stock | $ 11,107 | $ 9,819 | $ 5,362 | ||||||||
Weighted average shares outstanding for basic earnings per common share (in shares) | 17,184,432 | 16,939,010 | 16,515,489 | ||||||||
Dilutive effect of stock-based compensation and warrants (in shares) | 446,168 | 146,742 | 225,726 | ||||||||
Weighted average shares outstanding for diluted earnings per common share (in shares) | 17,630,600 | 17,085,752 | 16,741,215 | ||||||||
Basic income per common share (in dollars per share) | $ 0.16 | $ 0.24 | $ 0.13 | $ 0.12 | $ 0.17 | $ 0.17 | $ 0.14 | $ 0.10 | $ 0.65 | $ 0.58 | $ 0.32 |
Diluted income per common share (in dollars per share) | $ 0.15 | $ 0.24 | $ 0.13 | $ 0.12 | $ 0.17 | $ 0.17 | $ 0.14 | $ 0.09 | $ 0.64 | $ 0.57 | $ 0.32 |
Summary of Significant Accoun44
Summary of Significant Accounting Policies (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2016segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 1 |
Acquisition (Narrative) (Detail
Acquisition (Narrative) (Details) - Mazon State Bank $ in Thousands | Jul. 01, 2016USD ($)branch | Dec. 31, 2016USD ($) |
Business Acquisition [Line Items] | ||
Purchase price | $ 8,500 | |
Number of branches | branch | 3 | |
Merger related costs | $ 1,200 |
Acquisition (Fair Value of Asse
Acquisition (Fair Value of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | Jul. 01, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ||||
Bargain purchase gain | $ 1,920 | $ 0 | $ 0 | |
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 | |||
Premises and equipment, net | 4,193 | |||
Foreclosed assets | 9 | |||
Cash surrender value of life insurance | 2,317 | |||
Other assets | 1,363 | |||
Fair value adjustments, loans | (362) | |||
Fair value adjustments, premises and equipment | 3,294 | |||
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 | |||
Other liabilities | 833 | |||
Total liabilities | 75,096 | |||
Excess of assets acquired over liabilities assumed | 10,420 | |||
Less: Purchase price paid in cash | 8,500 | |||
Bargain purchase gain | 1,920 | |||
Fair value adjustments, deposits | (49) | |||
Fair value adjustments, deferred tax liabilities | 1,272 | |||
Fair value adjustments, liabilities | 1,223 | |||
Fair value adjustments, excess of assets acquired over liabilities assumed | 2,532 | |||
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 |
Securities Available for Sale47
Securities Available for Sale (Amortized Cost and Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 204,185 | $ 203,959 |
Gross Unrealized Gains | 657 | 2,506 |
Gross Unrealized Losses | 2,644 | 861 |
Securities available for sale | 202,198 | 205,604 |
Government sponsored enterprises | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 16,284 | |
Gross Unrealized Gains | 125 | |
Gross Unrealized Losses | 0 | |
Securities available for sale | 16,409 | |
Residential collateralized mortgage obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 62,081 | 62,701 |
Gross Unrealized Gains | 45 | 138 |
Gross Unrealized Losses | 709 | 475 |
Securities available for sale | 61,417 | 62,364 |
Residential mortgage backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 33,701 | 28,494 |
Gross Unrealized Gains | 97 | 65 |
Gross Unrealized Losses | 557 | 268 |
Securities available for sale | 33,241 | 28,291 |
State and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 108,403 | 96,480 |
Gross Unrealized Gains | 515 | 2,178 |
Gross Unrealized Losses | 1,378 | 118 |
Securities available for sale | $ 107,540 | $ 98,540 |
Securities Available for Sale48
Securities Available for Sale (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Investments, Debt and Equity Securities [Abstract] | |||
Securities pledged as collateral | $ 121,100 | $ 82,200 | |
Gain on sale of securities | 617 | 484 | $ 912 |
Unrealized losses, total | $ 2,644 | $ 861 |
Securities Available for Sale49
Securities Available for Sale (Securities Segregated by Maturity Dates) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Amortized Cost | ||
Within 1 year | $ 3,818 | |
Over 1 year through 5 years | 32,499 | |
Over 5 years through 10 years | 25,911 | |
Over 10 years | 46,175 | |
Residential collateralized mortgage obligations and mortgage backed securities | 95,782 | |
Amortized Cost | 204,185 | $ 203,959 |
Fair Value | ||
Within 1 year | 3,830 | |
Over 1 year through 5 years | 32,376 | |
Over 5 years through 10 years | 25,716 | |
Over 10 years | 45,618 | |
Residential collateralized mortgage obligations and mortgage backed securities | 94,658 | |
Fair Value | $ 202,198 | $ 205,604 |
Securities Available for Sale50
Securities Available for Sale (Unrealized Losses and Fair Value Aggregated by Investment Category) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value, less than 12 months | $ 140,932 | $ 85,668 |
Unrealized losses, less than 12 months | 2,644 | 861 |
Fair value, 12 months or more | 0 | 0 |
Unrealized losses, 12 months or more | 0 | 0 |
Fair value, total | 140,932 | 85,668 |
Unrealized losses, total | 2,644 | 861 |
State and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value, less than 12 months | 71,904 | 12,283 |
Unrealized losses, less than 12 months | 1,378 | 118 |
Fair value, 12 months or more | 0 | 0 |
Unrealized losses, 12 months or more | 0 | 0 |
Fair value, total | 71,904 | 12,283 |
Unrealized losses, total | 1,378 | 118 |
Residential collateralized mortgage obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value, less than 12 months | 52,811 | 46,373 |
Unrealized losses, less than 12 months | 709 | 475 |
Fair value, 12 months or more | 0 | 0 |
Unrealized losses, 12 months or more | 0 | 0 |
Fair value, total | 52,811 | 46,373 |
Unrealized losses, total | 709 | 475 |
Residential mortgage backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value, less than 12 months | 16,217 | 27,012 |
Unrealized losses, less than 12 months | 557 | 268 |
Fair value, 12 months or more | 0 | 0 |
Unrealized losses, 12 months or more | 0 | 0 |
Fair value, total | 16,217 | 27,012 |
Unrealized losses, total | $ 557 | $ 268 |
Loans (Balances) (Details)
Loans (Balances) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 991,693 | $ 772,345 |
Net deferred loan fees | (75) | (26) |
Allowance for loan and lease losses | (11,684) | (11,741) |
Loans, net | 979,934 | 760,578 |
Construction and Land Development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 47,338 | 22,082 |
Farmland and Agricultural Production | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 12,628 | 9,989 |
Residential 1-4 Family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 175,978 | 135,864 |
Multifamily | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 36,703 | 34,272 |
Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 425,985 | 381,098 |
Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 281,804 | 179,623 |
Leases, net | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 3,290 | 0 |
Consumer and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 7,967 | $ 9,417 |
Loans (Contractual Aging of the
Loans (Contractual Aging of the Recorded Investment in Past Due and Nonaccrual Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | $ 985,837 | $ 770,934 |
Non-accrual Loans | 5,856 | 1,411 |
Total Loans | 991,693 | 772,345 |
Construction and Land Development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 47,338 | 22,082 |
Non-accrual Loans | 0 | 0 |
Total Loans | 47,338 | 22,082 |
Farmland and Agricultural Production | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 12,628 | 9,989 |
Non-accrual Loans | 0 | 0 |
Total Loans | 12,628 | 9,989 |
Residential 1-4 Family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 175,205 | 135,814 |
Non-accrual Loans | 773 | 50 |
Total Loans | 175,978 | 135,864 |
Multifamily | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 36,703 | 34,272 |
Non-accrual Loans | 0 | 0 |
Total Loans | 36,703 | 34,272 |
Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 425,985 | 381,098 |
Commercial Real Estate | Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 89,525 | 95,570 |
Non-accrual Loans | 3,525 | 0 |
Total Loans | 93,050 | 95,570 |
Commercial Real Estate | Office | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 62,876 | 55,151 |
Non-accrual Loans | 0 | 0 |
Total Loans | 62,876 | 55,151 |
Commercial Real Estate | Industrial and Warehouse | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 75,351 | 65,536 |
Non-accrual Loans | 0 | 0 |
Total Loans | 75,351 | 65,536 |
Commercial Real Estate | Health Care | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 30,232 | 29,985 |
Non-accrual Loans | 0 | 0 |
Total Loans | 30,232 | 29,985 |
Commercial Real Estate | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 164,408 | 134,762 |
Non-accrual Loans | 68 | 94 |
Total Loans | 164,476 | 134,856 |
Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 280,314 | 178,356 |
Non-accrual Loans | 1,490 | 1,267 |
Total Loans | 281,804 | 179,623 |
Leases, net | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 3,290 | |
Non-accrual Loans | 0 | |
Total Loans | 3,290 | 0 |
Consumer and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 7,967 | 9,417 |
Non-accrual Loans | 0 | 0 |
Total Loans | 7,967 | 9,417 |
Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 985,092 | 770,488 |
Current | Construction and Land Development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 47,338 | 21,885 |
Current | Farmland and Agricultural Production | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 12,628 | 9,989 |
Current | Residential 1-4 Family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 175,178 | 135,632 |
Current | Multifamily | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 36,703 | 34,272 |
Current | Commercial Real Estate | Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 89,525 | 95,570 |
Current | Commercial Real Estate | Office | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 62,876 | 55,151 |
Current | Commercial Real Estate | Industrial and Warehouse | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 75,351 | 65,536 |
Current | Commercial Real Estate | Health Care | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 30,232 | 29,985 |
Current | Commercial Real Estate | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 163,732 | 134,762 |
Current | Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 280,282 | 178,289 |
Current | Leases, net | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 3,290 | |
Current | Consumer and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 7,957 | 9,417 |
30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 161 | 182 |
30-59 Days Past Due | Construction and Land Development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 0 | 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 | 27 | 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 | 92 | 0 |
30-59 Days Past Due | Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 32 | 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 | 10 | 0 |
60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Accruing Loans | 584 | 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 | 584 | 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 | 0 | 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 | 0 | 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 (Risk Category of Loans E
Loans (Risk Category of Loans Evaluated by Internal Asset Classification) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | $ 807,748 | $ 627,064 |
Financing receivable residential, consumer and other | 183,945 | 145,281 |
Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 775,016 | 602,849 |
Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 9,146 | 11,521 |
Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 20,096 | 11,452 |
Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 3,490 | 1,242 |
Performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable residential, consumer and other | 183,172 | 145,231 |
Non-performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable residential, consumer and other | 773 | 50 |
Construction and Land Development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 47,338 | 22,082 |
Construction and Land Development | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 44,862 | 19,450 |
Construction and Land Development | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 2,476 | 2,632 |
Construction and Land Development | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 0 | 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 | 12,628 | 9,989 |
Farmland and Agricultural Production | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 12,628 | 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 | 0 | 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 | 36,703 | 34,272 |
Multifamily | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 35,934 | 33,598 |
Multifamily | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 769 | 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 | 93,050 | 95,570 |
Commercial Real Estate | Office | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 62,876 | 55,151 |
Commercial Real Estate | Industrial and Warehouse | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 75,351 | 65,536 |
Commercial Real Estate | Health Care | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 30,232 | 29,985 |
Commercial Real Estate | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 164,476 | 134,856 |
Commercial Real Estate | Pass | Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 81,821 | 87,665 |
Commercial Real Estate | Pass | Office | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 59,384 | 55,151 |
Commercial Real Estate | Pass | Industrial and Warehouse | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 74,669 | 64,699 |
Commercial Real Estate | Pass | Health Care | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 30,232 | 29,985 |
Commercial Real Estate | Pass | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 157,618 | 128,988 |
Commercial Real Estate | Special Mention | Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 0 | 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 | 682 | 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 | 2,898 | 2,664 |
Commercial Real Estate | Substandard | Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 9,148 | 7,905 |
Commercial Real Estate | Substandard | Office | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 3,492 | 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 | 3,953 | 3,192 |
Commercial Real Estate | Doubtful | Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 2,081 | 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 | 7 | 12 |
Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 281,804 | 179,623 |
Commercial and Industrial | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 274,578 | 173,324 |
Commercial and Industrial | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 2,321 | 4,714 |
Commercial and Industrial | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 3,503 | 355 |
Commercial and Industrial | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 1,402 | 1,230 |
Leases, net | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 3,290 | |
Leases, net | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 3,290 | |
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 | |
Residential 1-4 Family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 175,978 | 135,864 |
Residential 1-4 Family | Performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 175,205 | 135,814 |
Residential 1-4 Family | Non-performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 773 | 50 |
Consumer and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 7,967 | 9,417 |
Consumer and other | Performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | 7,967 | 9,417 |
Consumer and other | Non-performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable | $ 0 | $ 0 |
Loans (Activity in the Allowanc
Loans (Activity in the Allowance for Loan Losses, by Portfolio Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | $ 11,741 | $ 13,905 | $ 15,820 |
Provision for loan losses | 1,066 | (2,077) | 3,000 |
Loans charged-off | (2,400) | (1,859) | (6,633) |
Recoveries of loans previously charged-off | 1,277 | 1,772 | 1,718 |
Ending balance | 11,684 | 11,741 | 13,905 |
Construction and Land Development | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 813 | 758 | 2,711 |
Provision for loan losses | 668 | (16) | (840) |
Loans charged-off | 0 | 0 | (1,186) |
Recoveries of loans previously charged-off | 68 | 71 | 73 |
Ending balance | 1,549 | 813 | 758 |
Farmland and Agricultural Production | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 43 | 459 | 427 |
Provision for loan losses | 0 | (416) | 32 |
Loans charged-off | 0 | 0 | 0 |
Recoveries of loans previously charged-off | 0 | 0 | 0 |
Ending balance | 43 | 43 | 459 |
Residential 1-4 Family | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 1,370 | 1,199 | 1,440 |
Provision for loan losses | (440) | 112 | (9) |
Loans charged-off | (15) | (195) | (264) |
Recoveries of loans previously charged-off | 33 | 254 | 32 |
Ending balance | 948 | 1,370 | 1,199 |
Multifamily | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 141 | 67 | 97 |
Provision for loan losses | 113 | 74 | (30) |
Loans charged-off | 0 | 0 | 0 |
Recoveries of loans previously charged-off | 0 | 0 | 0 |
Ending balance | 254 | 141 | 67 |
Commercial Real Estate | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 4,892 | 6,828 | 7,812 |
Provision for loan losses | 28 | (2,623) | 560 |
Loans charged-off | (471) | (548) | (2,836) |
Recoveries of loans previously charged-off | 47 | 1,235 | 1,292 |
Ending balance | 4,496 | 4,892 | 6,828 |
Commercial and Industrial | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 4,286 | 4,296 | 3,183 |
Provision for loan losses | 837 | 894 | 3,119 |
Loans charged-off | (1,905) | (1,106) | (2,321) |
Recoveries of loans previously charged-off | 1,125 | 202 | 315 |
Ending balance | 4,343 | 4,286 | 4,296 |
Leases, net | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 0 | 0 | 0 |
Provision for loan losses | 17 | 0 | 0 |
Loans charged-off | 0 | 0 | 0 |
Recoveries of loans previously charged-off | 0 | 0 | 0 |
Ending balance | 17 | 0 | 0 |
Consumer and other | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 196 | 298 | 150 |
Provision for loan losses | (157) | (102) | 168 |
Loans charged-off | (9) | (10) | (26) |
Recoveries of loans previously charged-off | 4 | 10 | 6 |
Ending balance | $ 34 | $ 196 | $ 298 |
Loans (Balance in the Allowance
Loans (Balance in the Allowance for Loan Losses and the Unpaid Principal Balance of Loans by Portfolio Segment) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | $ 444 | $ 471 | ||
Collectively evaluated for impairment | 11,240 | 11,270 | ||
Ending balance | 11,684 | 11,741 | $ 13,905 | $ 15,820 |
Individually evaluated for impairment | 12,464 | 9,819 | ||
Collectively evaluated for impairment | 979,229 | 762,526 | ||
Total Loans | 991,693 | 772,345 | ||
Construction and Land Development | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 1,549 | 813 | ||
Ending balance | 1,549 | 813 | 758 | 2,711 |
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 47,338 | 22,082 | ||
Total Loans | 47,338 | 22,082 | ||
Farmland and Agricultural Production | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 43 | 43 | ||
Ending balance | 43 | 43 | 459 | 427 |
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 12,628 | 9,989 | ||
Total Loans | 12,628 | 9,989 | ||
Residential 1-4 Family | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 27 | 30 | ||
Collectively evaluated for impairment | 921 | 1,340 | ||
Ending balance | 948 | 1,370 | 1,199 | 1,440 |
Individually evaluated for impairment | 1,285 | 1,661 | ||
Collectively evaluated for impairment | 174,693 | 134,203 | ||
Total Loans | 175,978 | 135,864 | ||
Multifamily | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 254 | 141 | ||
Ending balance | 254 | 141 | 67 | 97 |
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 36,703 | 34,272 | ||
Total Loans | 36,703 | 34,272 | ||
Commercial Real Estate | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 4,496 | 4,892 | ||
Ending balance | 4,496 | 4,892 | 6,828 | 7,812 |
Individually evaluated for impairment | 7,267 | 4,381 | ||
Collectively evaluated for impairment | 418,718 | 376,717 | ||
Total Loans | 425,985 | 381,098 | ||
Commercial and Industrial | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 417 | 441 | ||
Collectively evaluated for impairment | 3,926 | 3,845 | ||
Ending balance | 4,343 | 4,286 | 4,296 | 3,183 |
Individually evaluated for impairment | 3,912 | 3,777 | ||
Collectively evaluated for impairment | 277,892 | 175,846 | ||
Total Loans | 281,804 | 179,623 | ||
Leases, net | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 17 | 0 | ||
Ending balance | 17 | 0 | 0 | 0 |
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 3,290 | 0 | ||
Total Loans | 3,290 | 0 | ||
Consumer and other | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 34 | 196 | ||
Ending balance | 34 | 196 | $ 298 | $ 150 |
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 7,967 | 9,417 | ||
Total Loans | $ 7,967 | $ 9,417 |
Loans (Additional Detail of Imp
Loans (Additional Detail of Impaired loans, Segregated by Class) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Unpaid Principal Balance | ||
Total | $ 14,689 | $ 10,586 |
Recorded Investment | ||
Total | 12,464 | 9,819 |
Allowance for Loan and Lease Losses Allocated | ||
Total | 444 | 471 |
Average Recorded Investment | ||
Total | 12,078 | 12,910 |
Interest Income Recognized | ||
Total | 341 | 367 |
Consumer and other | ||
Unpaid Principal Balance | ||
With no related allowance recorded: | 0 | |
Recorded Investment | ||
With no related allowance recorded: | 0 | |
Allowance for Loan and Lease Losses Allocated | ||
With no related allowance recorded: | 0 | |
Average Recorded Investment | ||
With no related allowance recorded: | 4 | |
Interest Income Recognized | ||
With no related allowance recorded: | 0 | |
Commercial and Industrial | ||
Unpaid Principal Balance | ||
With no related allowance recorded: | 4,504 | 3,331 |
With an allowance recorded: | 1,058 | 1,109 |
Recorded Investment | ||
With no related allowance recorded: | 3,054 | 3,131 |
With an allowance recorded: | 858 | 646 |
Allowance for Loan and Lease Losses Allocated | ||
With no related allowance recorded: | 0 | 0 |
With an allowance recorded: | 417 | 441 |
Average Recorded Investment | ||
With no related allowance recorded: | 3,532 | 3,640 |
With an allowance recorded: | 1,319 | 491 |
Interest Income Recognized | ||
With no related allowance recorded: | 130 | 130 |
With an allowance recorded: | 0 | 0 |
Construction and Land Development | ||
Unpaid Principal Balance | ||
With no related allowance recorded: | 0 | |
Recorded Investment | ||
With no related allowance recorded: | 0 | |
Allowance for Loan and Lease Losses Allocated | ||
With no related allowance recorded: | 0 | |
Average Recorded Investment | ||
With no related allowance recorded: | 217 | |
Interest Income Recognized | ||
With no related allowance recorded: | 0 | |
Residential 1-4 Family | ||
Unpaid Principal Balance | ||
With no related allowance recorded: | 865 | 1,232 |
With an allowance recorded: | 459 | 468 |
Recorded Investment | ||
With no related allowance recorded: | 826 | 1,193 |
With an allowance recorded: | 459 | 468 |
Allowance for Loan and Lease Losses Allocated | ||
With no related allowance recorded: | 0 | 0 |
With an allowance recorded: | 27 | 30 |
Average Recorded Investment | ||
With no related allowance recorded: | 1,278 | 1,280 |
With an allowance recorded: | 463 | 473 |
Interest Income Recognized | ||
With no related allowance recorded: | 61 | 61 |
With an allowance recorded: | 23 | 23 |
Multifamily | ||
Unpaid Principal Balance | ||
With an allowance recorded: | 0 | |
Recorded Investment | ||
With an allowance recorded: | 0 | |
Allowance for Loan and Lease Losses Allocated | ||
With an allowance recorded: | 0 | |
Average Recorded Investment | ||
With an allowance recorded: | 0 | |
Interest Income Recognized | ||
With an allowance recorded: | 0 | |
Commercial Real Estate | Retail | ||
Unpaid Principal Balance | ||
With no related allowance recorded: | 3,995 | |
Recorded Investment | ||
With no related allowance recorded: | 3,524 | |
Allowance for Loan and Lease Losses Allocated | ||
With no related allowance recorded: | 0 | |
Average Recorded Investment | ||
With no related allowance recorded: | 1,362 | |
Interest Income Recognized | ||
With no related allowance recorded: | 0 | |
Commercial Real Estate | Office | ||
Unpaid Principal Balance | ||
With no related allowance recorded: | 494 | |
With an allowance recorded: | 0 | |
Recorded Investment | ||
With no related allowance recorded: | 494 | |
With an allowance recorded: | 0 | |
Allowance for Loan and Lease Losses Allocated | ||
With no related allowance recorded: | 0 | |
With an allowance recorded: | 0 | |
Average Recorded Investment | ||
With no related allowance recorded: | 502 | |
With an allowance recorded: | 64 | |
Interest Income Recognized | ||
With no related allowance recorded: | 26 | |
With an allowance recorded: | 0 | |
Commercial Real Estate | Industrial and Warehouse | ||
Unpaid Principal Balance | ||
With no related allowance recorded: | 0 | |
Recorded Investment | ||
With no related allowance recorded: | 0 | |
Allowance for Loan and Lease Losses Allocated | ||
With no related allowance recorded: | 0 | |
Average Recorded Investment | ||
With no related allowance recorded: | 1,441 | |
Interest Income Recognized | ||
With no related allowance recorded: | 0 | |
Commercial Real Estate | Consumer and other | ||
Unpaid Principal Balance | ||
With no related allowance recorded: | 3,808 | 3,952 |
Recorded Investment | ||
With no related allowance recorded: | 3,743 | 3,887 |
Allowance for Loan and Lease Losses Allocated | ||
With no related allowance recorded: | 0 | 0 |
Average Recorded Investment | ||
With no related allowance recorded: | 3,808 | 5,015 |
Interest Income Recognized | ||
With no related allowance recorded: | $ 127 | $ 127 |
Loans (Unpaid Principal Balance
Loans (Unpaid Principal Balance of Loans Modified in a Troubled Debt Restructuring) (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016USD ($)loan | Dec. 31, 2016USD ($)contract | Dec. 31, 2015USD ($)loan | Dec. 31, 2015USD ($)contract | |
Receivables [Abstract] | ||||
Additions to troubled debt restructurings (in loans) | 3 | 3 | 0 | 0 |
Troubled debt restructuring, accruing | $ 2,200 | $ 2,200 | $ 2,800 | $ 2,800 |
Troubled debt restructuring, non-accruing | $ 2,200 | $ 2,200 | $ 94 | $ 94 |
Loans (Rollforward Activity of
Loans (Rollforward Activity of Troubled Debt Restructurings) (Details) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2016USD ($) | Dec. 31, 2016loan | Dec. 31, 2016contract | Dec. 31, 2015USD ($) | Dec. 31, 2015loan | Dec. 31, 2015contract | |
Financing Receivables, Troubled Debt Restructuring, Roll Forward [Roll Forward] | ||||||
Balance, beginning | $ 2,832 | $ 5,621 | ||||
Additions to troubled debt restructurings | 2,460 | 0 | ||||
Removal of troubled debt restructurings | (519) | (309) | ||||
Transfers to other real estate owned | 0 | (1,486) | ||||
Repayments and other reductions | (396) | (994) | ||||
Balance, ending | $ 4,377 | $ 2,832 | ||||
Number of Loans | ||||||
Balance, beginning (in loans) | loan | 6 | 10 | ||||
Additions to troubled debt restructurings (in loans) | 3 | 3 | 0 | 0 | ||
Removal of troubled debt restructurings (in loans) | loan | (2) | (1) | ||||
Transfers to other real estate owned (in loans) | loan | 0 | (1) | ||||
Repayments and other reductions (in loans) | loan | 0 | (2) | ||||
Balance, ending (in loans) | loan | 7 | 6 |
Loans (Loans to Related Parties
Loans (Loans to Related Parties) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | |||
Balance, beginning | $ 39,176 | $ 35,583 | |
New loans | 4,763 | 5,313 | |
Repayments and other reductions | (5,821) | (1,720) | |
Balance, ending | $ 39,176 | $ 35,583 | $ 38,118 |
Premises and Equipment (Narrati
Premises and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization of premises and equipment | $ 1,183 | $ 1,293 | $ 1,250 |
Rent expense | $ 172 | $ 169 | $ 301 |
Increase rental payments (up to) (as a percent) | 3.00% |
Premises and Equipment (Premise
Premises and Equipment (Premises and Equipment Summary) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 31,432 | $ 26,508 |
Less: accumulated depreciation | 9,218 | 7,979 |
Premises and equipment, net | 22,214 | 18,529 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 5,078 | 4,226 |
Building and building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 21,487 | 18,044 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 4,867 | $ 4,238 |
Premises and Equipment (Schedul
Premises and Equipment (Schedule of Future Minimum Rental Payments for Operating Leases) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Property, Plant and Equipment [Abstract] | |
2,017 | $ 103 |
2,018 | 103 |
2,019 | 103 |
2,020 | 103 |
2,021 | 103 |
Thereafter | 485 |
Total future minimum annual rental commitments | $ 1,000 |
Foreclosed Assets (Analysis of
Foreclosed Assets (Analysis of the Foreclosed Assets and the Related Provision for Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Foreclosed Assets [Roll Forward] | ||
Beginning balance | $ 5,487 | $ 2,530 |
Transfers of loans | 0 | 3,291 |
Acquired through Mazon acquisition | 9 | 0 |
Writedown to realizable value | (47) | (200) |
Gain (loss) on sale of foreclosed assets | (3) | 13 |
Proceeds on sale | (4,721) | (147) |
Ending balance | $ 725 | $ 5,487 |
Foreclosed Assets (Expenses App
Foreclosed Assets (Expenses Applicable to Foreclosed Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Writedown to realizable value | $ 48 | $ 200 | $ 434 |
Operating expenses, net of rental income | 40 | 130 | 219 |
Expenses applicable to foreclosed assets | $ 88 | $ 330 | $ 653 |
Deposits (Composition of Intere
Deposits (Composition of Interest-Bearing Deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deposits [Abstract] | ||
NOW and money market accounts | $ 443,727 | $ 336,197 |
Savings | 64,695 | 36,207 |
Time deposit certificates of $250,000 or more | 96,421 | 69,961 |
Time deposit certificates of $100,000 to $250,000 | 125,807 | 127,091 |
Other time deposit certificates | 104,650 | 100,472 |
Interest-bearing deposit liabilities | $ 835,300 | $ 669,928 |
Deposits (Composition of Broker
Deposits (Composition of Brokered Deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deposits [Abstract] | ||
NOW and money market accounts | $ 54,971 | $ 35,271 |
Time deposit certificates | 41,169 | 11,874 |
Noninterest-bearing deposit liabilities | $ 96,140 | $ 47,145 |
Deposits (Maturities of Certifi
Deposits (Maturities of Certificates of Deposit) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Banking and Thrift [Abstract] | |
2,017 | $ 197,883 |
2,018 | 96,129 |
2,019 | 21,282 |
2,020 | 4,304 |
2,021 | 7,280 |
Total | $ 326,878 |
Deposits (Narrative) (Details)
Deposits (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Banking and Thrift [Abstract] | ||
Deposits from related parties | $ 41.4 | $ 38.5 |
Subordinated Debt (Summary of S
Subordinated Debt (Summary of Subordinated Debt Outstanding) (Details) - Subordinated Debt - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Oct. 31, 2014 | Sep. 30, 2013 |
Debt Instrument [Line Items] | ||||
Long-term debt | $ 15,300 | $ 15,300 | ||
8.625% Subordinated Debt | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 8.625% | 8.625% | ||
Long-term debt | $ 5,500 | 5,500 | ||
7.0% Subordinated Debt | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 7.00% | 7.00% | ||
Long-term debt | $ 9,800 | $ 9,800 |
Subordinated Debt (Narrative) (
Subordinated Debt (Narrative) (Details) - Subordinated Debt $ in Thousands | Oct. 31, 2014USD ($)$ / note | Sep. 30, 2013USD ($)$ / note | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Debt Instrument [Line Items] | ||||
Long-term debt | $ 15,300 | $ 15,300 | ||
Due to related parties | $ 2,800 | 2,800 | ||
8.625% Subordinated Debt | ||||
Debt Instrument [Line Items] | ||||
Issuance of subordinated indebtedness | $ 5,500 | |||
Proceeds from issuance of long term debt (in dollars per note) | $ / note | 1,000 | |||
Interest rate (as a percent) | 8.625% | 8.625% | ||
Early redemption option (in years) | 5 years | |||
Long-term debt | $ 5,500 | 5,500 | ||
7.0% Subordinated Debt | ||||
Debt Instrument [Line Items] | ||||
Issuance of subordinated indebtedness | $ 9,800 | |||
Proceeds from issuance of long term debt (in dollars per note) | $ / note | 10,000 | |||
Maturity term (in years) | 8 years | |||
Interest rate (as a percent) | 7.00% | 7.00% | ||
Long-term debt | $ 9,800 | $ 9,800 |
Other Borrowed Funds (Compositi
Other Borrowed Funds (Composition of Other Borrowed Funds) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Short-term Debt [Line Items] | ||
Securities sold under agreements to repurchase | $ 24,153 | $ 25,069 |
Federal Home Loan Bank Advances | 27,000 | 16,000 |
Secured borrowings | 0 | 11,946 |
Other borrowed funds | 51,153 | 53,015 |
Matures January 20, 2017, 0.70% | ||
Short-term Debt [Line Items] | ||
Federal Home Loan Bank Advances | $ 17,000 | $ 11,000 |
Debt instrument, fixed interest rate (percent) | 0.70% | 0.70% |
Matures January 23, 2017, 0.70% | ||
Short-term Debt [Line Items] | ||
Federal Home Loan Bank Advances | $ 10,000 | $ 5,000 |
Debt instrument, fixed interest rate (percent) | 0.70% | 0.70% |
Other Borrowed Funds (Schedule
Other Borrowed Funds (Schedule of Information Pertaining to Securities Sold Under Agreements to Repurchase) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Banking and Thrift [Abstract] | ||
Sweep repurchase agreements | $ 24,153 | $ 25,069 |
Weighted average rate (percent) | 0.16% | 0.16% |
Securities underlying the agreements, Carrying value | $ 27,082 | $ 40,101 |
Securities underlying the agreements, Fair value | $ 26,943 | $ 39,949 |
Other Borrowed Funds (Narrative
Other Borrowed Funds (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 29, 2015USD ($)facility | |
Debt Instrument [Line Items] | |||
Advances from federal home loan banks | $ 27,000,000 | $ 16,000,000 | |
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 | $ 409,400,000 | 338,000,000 | |
Commercial, Agricultural and Consumer Loans | |||
Debt Instrument [Line Items] | |||
Loans pledged as collateral | 203,700,000 | 100,100,000 | |
Revolving line of credit | |||
Debt Instrument [Line Items] | |||
Revolving line of credit | $ 4,000,000 | ||
Balance on line of credit | 0 | 1,900,000 | |
Term loan | |||
Debt Instrument [Line Items] | |||
Revolving line of credit | $ 0 | $ 10,100,000 | |
Line of Credit | |||
Debt Instrument [Line Items] | |||
Number of debt instruments | facility | 2 | ||
Line of Credit | LIBOR | |||
Debt Instrument [Line Items] | |||
Interest rate | 2.25% | ||
Interest rate during period | 2.95% |
Income Taxes (Expense (Benefit)
Income Taxes (Expense (Benefit) Recognized) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||||||||||
Current | $ 1,601 | $ 116 | $ 464 | ||||||||
Deferred | 2,723 | 4,884 | 2,273 | ||||||||
Total income tax (benefit) expense | $ 1,358 | $ 1,019 | $ 1,058 | $ 889 | $ 1,475 | $ 1,471 | $ 1,189 | $ 867 | $ 4,324 | $ 5,000 | $ 2,737 |
Income Taxes (Reconciliation) (
Income Taxes (Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||||||||||
Federal income tax at statutory rate | $ 5,399 | $ 5,187 | $ 3,017 | ||||||||
Increase (decrease) due to: | |||||||||||
Federal tax exempt | (769) | (606) | (331) | ||||||||
State income tax, net of federal benefit | 789 | 758 | 541 | ||||||||
Benefit of income taxed at lower rate | (154) | (148) | (86) | ||||||||
Tax exempt income | (13) | (29) | (25) | ||||||||
Cash surrender value of life insurance | (208) | (81) | (186) | ||||||||
Bargain purchase gain | (652) | 0 | 0 | ||||||||
Other | (68) | (81) | (193) | ||||||||
Total income tax (benefit) expense | $ 1,358 | $ 1,019 | $ 1,058 | $ 889 | $ 1,475 | $ 1,471 | $ 1,189 | $ 867 | $ 4,324 | $ 5,000 | $ 2,737 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Allowance for loan and lease losses | $ 4,570 | $ 4,169 |
Merger expenses | 182 | 140 |
Organization expenses | 198 | 226 |
Net operating losses | 5 | 3,774 |
Contribution carryforward | 5 | 5 |
Non-qualified stock options | 726 | 644 |
Restricted stock | 362 | 0 |
Foreclosed assets | 282 | 315 |
Tax credits | 0 | 334 |
Unrealized losses on securities available for sale | 0 | 0 |
Other | 945 | 135 |
Total deferred tax assets | 7,275 | 9,742 |
Deferred tax liabilities: | ||
Depreciation | (1,140) | (186) |
Core deposit intangible | (297) | 0 |
Unrealized gains on securities available for sale | 775 | (642) |
Other | 0 | 277 |
Total deferred tax liabilities | (662) | (551) |
Net deferred tax asset | $ 6,613 | $ 9,191 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Federal | ||
Income Tax Contingency [Line Items] | ||
Net operating loss carryforwards | $ 0 | $ 9,300 |
Illinois | ||
Income Tax Contingency [Line Items] | ||
Net operating loss carryforwards | $ 0 | $ 11,100 |
Stock Compensation Plans (Narra
Stock Compensation Plans (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2011 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | May 19, 2016 | Aug. 15, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock compensation expense | $ 936 | $ 838 | $ 828 | ||||
Options vested (shares) | 198,950 | ||||||
Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock compensation expense | $ 936 | $ 731 | |||||
Unrecognized compensation expense | $ 52 | ||||||
Restricted Stock | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares issued with performance conditions | 52,301 | 33,600 | |||||
Restricted Stock | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares issued with performance conditions | 131,948 | 170,549 | |||||
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 | $ 0 | $ 7,942 | $ 1,308 | 0 | |||
Restricted stock compensation expense | 341 | $ 71 | $ 0 | ||||
Unrecognized compensation expense | $ 532 |
Stock Compensation Plans (Stock
Stock Compensation Plans (Stock Options) (Details) - Stock Incentive Plan and Equity Incentive Plan - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Shares | ||
Outstanding at beginning of year (in shares) | 1,305,504 | 1,089,404 |
Granted (in shares) | 539,950 | 217,500 |
Exercised (in shares) | (48,520) | 0 |
Canceled (in shares) | 0 | 0 |
Expired (in shares) | 0 | 0 |
Forfeited (in shares) | 0 | (1,400) |
Outstanding at end of period (in shares) | 1,796,934 | 1,305,504 |
Exercisable at end of period (in shares) | 1,238,434 | 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) | 8.68 | 5.20 |
Exercised (in dollars per share) | 7.12 | 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) | 7.28 | 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 | 1,629 | 444 |
Exercised | 222 | 0 |
Canceled | 0 | 0 |
Expired | 0 | 0 |
Forfeited | 0 | 0 |
Outstanding at end of period | 7,942 | 1,308 |
Exercisable at end of period | $ 5,764 | $ 864 |
Stock Compensation Plans (Infor
Stock Compensation Plans (Information Pertaining to Options Outstanding) (Details) - Stock Incentive Plan and Equity Incentive Plan - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number outstanding (in shares) | 1,796,934 | 1,305,504 | 1,089,404 |
Number exercisable (in shares) | 1,238,434 | 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 6 months 14 days | ||
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 2 days | ||
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 4 months 3 days | ||
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) | 3 years 9 months 10 days | ||
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 2 days | ||
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) | 400,580 | ||
Weighted average remaining life (in years) | 6 months 29 days | ||
Number exercisable (in shares) | 400,580 | ||
$ 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 8 months 16 days | ||
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 6 months 1 day | ||
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 4 months 16 days | ||
Number exercisable (in shares) | 239,528 | ||
$ 10.35 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise prices (in dollars per share) | $ 10.35 | ||
Number outstanding (in shares) | 196,000 | ||
Weighted average remaining life (in years) | 9 years 10 months 17 days | ||
Number exercisable (in shares) | 0 |
Stock Compensation Plans (Summa
Stock Compensation Plans (Summary of Nonvested Restricted Shares) (Details) - Restricted Stock - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Number of Shares | ||
Outstanding at beginning of year (in shares) | 25,000 | 212,020 |
Granted (in shares) | 132,975 | 151,059 |
Vested (in shares) | (144,641) | (338,079) |
Canceled (in shares) | 0 | 0 |
Forfeited (in shares) | 0 | 0 |
Non-vested shares, end of period (in shares) | 13,334 | 25,000 |
Weighted Average Grant Date Fair Value (in dollars per share) | ||
Outstanding at beginning of year (in dollars per share) | $ 5.14 | $ 3.95 |
Granted (in dollars per share) | 6.64 | 5.24 |
Vested (in dollars per share) | 6.49 | 4.44 |
Canceled (in dollars per share) | 0 | 0 |
Forfeited (in dollars per share) | 0 | 0 |
Nonvested shares, end of period (in dollars per share) | $ 5.50 | $ 5.14 |
Concentrations, Commitments a82
Concentrations, Commitments and Contingencies (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments to extend credit | $ 262,408 | $ 179,517 |
Standby letters of credit | 12,164 | 10,353 |
Performance letters of credit | 2,253 | 1,088 |
Total | $ 276,825 | $ 190,958 |
Capital and Regulatory Matter83
Capital and Regulatory Matters (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Capital [Abstract] | ||
Capital to risk weighted assets (as a percent) | 12.99% | 14.69% |
Capital to risk weighted assets | $ 141,451,000 | $ 124,159,000 |
Capital required for capital adequacy to risk weighted assets | 8.625% | |
Capital required for capital adequacy | $ 93,892,000 | |
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) | 10.51% | 11.62% |
Tier one risk based capital | $ 114,467,000 | $ 98,276,000 |
Tier one risk based capital required for capital adequacy to risk weighted assets | 6.625% | |
Tier one risk based capital required for capital adequacy | $ 72,120,000 | |
Tier one risk based capital required to be well capitalized to risk weighted assets (as a percent) | 8.00% | |
Tier one common equity to risk weighted assets percent (as a percent) | 10.51% | 11.62% |
Tier one common equity to risk weighted assets amount | $ 114,467,000 | $ 98,276,000 |
Tier one common equity capital required for capital adequacy to risk weighted assets | 5.125% | |
Tier one common equity capital required for capital adequacy | $ 55,791,000 | |
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) | 9.10% | 9.36% |
Tier one leverage to average assets | $ 114,467,000 | $ 98,276,000 |
Tier one leverage capital required for capital adequacy to average assets | 4.00% | |
Tier one leverage capital required for capital adequacy | $ 50,323,000 | |
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) | 12.77% | 15.79% |
Capital to risk weighted assets | $ 138,772,000 | $ 133,247,000 |
Capital required for capital adequacy to risk weighted assets | 8.625% | |
Capital required for capital adequacy | $ 93,751,000 | |
Capital required to be well capitalized to risk weighted assets (as a percent) | 10.00% | |
Capital required to be well capitalized | $ 108,697,300 | |
Tier One Risk Based Capital [Abstract] | ||
Tier one risk based capital to risk weighted assets (as a percent) | 11.69% | 14.54% |
Tier one risk based capital | $ 127,088,000 | $ 122,664,000 |
Tier one risk based capital required for capital adequacy to risk weighted assets | 6.625% | |
Tier one risk based capital required for capital adequacy | $ 72,012,000 | |
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 | $ 86,957,840 | |
Tier one common equity to risk weighted assets percent (as a percent) | 11.69% | 14.54% |
Tier one common equity to risk weighted assets amount | $ 127,088,000 | $ 122,664,000 |
Tier one common equity capital required for capital adequacy to risk weighted assets | 5.125% | |
Tier one common equity capital required for capital adequacy | $ 55,707,000 | |
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 | $ 70,653,245 | |
Tier one leverage capital to average assets (as a percent) | 10.10% | 11.71% |
Tier one leverage to average assets | $ 127,088,000 | $ 122,664,000 |
Tier one leverage capital required for capital adequacy to average assets | 4.00% | |
Tier one leverage capital required for capital adequacy | $ 50,340,000 | |
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 | $ 62,924,950 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 202,198 | $ 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 | 200,694 | 204,100 |
Derivative financial instruments | 62 | 319 |
Derivative financial instruments | 62 | 319 |
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 | 62 | 95 |
Derivative financial instruments | 62 | 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 | 62 | 95 |
Derivative financial instruments | 62 | 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 | 61,417 | 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 | 61,417 | 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 | 33,241 | 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 | 33,241 | 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 | 33,241 | 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 | 107,540 | 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 | 107,540 | 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 | 106,036 | 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 | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 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 | 0 | (10) |
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 | $ 1,504 |
Fair Value Measurements (Fair86
Fair Value Measurements (Fair Value Measurements, Nonrecurring) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Mortgage loans held for sale | $ 1,230 | $ 400 | |
Impaired loans | 12,464 | 9,819 | |
Loans held for sale | 1,085 | 0 | |
Foreclosed assets | 725 | 5,487 | $ 2,530 |
Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Mortgage loans held for sale | 1,230 | 400 | |
Impaired loans | 12,020 | 9,348 | |
Loans held for sale | 1,085 | ||
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 | |
Loans held for sale | 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 | |
Loans held for sale | 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 | 1,230 | 400 | |
Impaired loans | 12,020 | 9,348 | |
Loans held for sale | 1,085 | ||
Foreclosed assets | $ 725 | $ 5,487 |
Fair Value Measurements (Additi
Fair Value Measurements (Additional Quantitative Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Impaired loans | $ 12,464 | $ 9,819 | |
Foreclosed assets | $ 725 | 5,487 | $ 2,530 |
Mortgage loans held for sale | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate (as a percent) | 0.00% | ||
Mortgage loans held for sale | Secondary market pricing | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Impaired loans | $ 1,230 | 400 | |
Loans held for sale | $ 1,085 | ||
Mortgage loans held for sale | Minimum | Secondary market pricing | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate (as a percent) | 10.00% | ||
Mortgage loans held for sale | Maximum | Secondary market pricing | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate (as a percent) | 25.00% | ||
Impaired loans | Appraisal of Collateral | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Impaired loans | $ 12,020 | 9,348 | |
Impaired loans | Minimum | Appraisal of Collateral | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate (as a percent) | 10.00% | ||
Impaired loans | Maximum | Appraisal of Collateral | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rate (as a percent) | 25.00% | ||
Foreclosed assets | Appraisal of Collateral | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Foreclosed assets | $ 725 | $ 5,487 | |
Discount rate (as a percent) | 10.00% |
Fair Value Measurements (The Es
Fair Value Measurements (The Estimated Fair Values of the Company's Financial Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Financial assets: | ||||
Cash and due from banks | $ 16,225 | $ 10,699 | $ 13,329 | $ 10,815 |
Interest-bearing deposits in banks | 8,548 | 7,406 | ||
Securities available for sale | 202,198 | 205,604 | ||
Non-marketable equity securities | 3,297 | 1,367 | ||
Mortgage loans held for sale | 1,230 | 400 | ||
Loans held for sale | 1,085 | 0 | ||
Loans, net | 979,934 | 760,578 | ||
Financial liabilities: | ||||
Noninterest bearing | 247,856 | 196,063 | ||
Interest bearing | 835,300 | 669,928 | ||
Other borrowed funds | 51,153 | 53,015 | ||
Subordinated debt | 15,300 | 15,300 | ||
Carrying (Reported) Amount, Fair Value Disclosure | ||||
Financial assets: | ||||
Cash and due from banks | 16,225 | 10,699 | ||
Interest-bearing deposits in banks | 8,548 | 7,406 | ||
Securities available for sale | 202,198 | 205,604 | ||
Non-marketable equity securities | 3,297 | 1,367 | ||
Mortgage loans held for sale | 1,230 | 400 | ||
Loans held for sale | 1,085 | |||
Loans, net | 979,934 | 760,578 | ||
Accrued interest receivable | 3,521 | 3,106 | ||
Derivative financial instruments | 62 | 319 | ||
Financial liabilities: | ||||
Noninterest bearing | 247,856 | 196,063 | ||
Interest bearing | 835,300 | 669,928 | ||
Other borrowed funds | 51,153 | 53,015 | ||
Subordinated debt | 15,300 | |||
Accrued interest payable | 566 | 545 | ||
Derivative financial instruments | 62 | 319 | ||
Derivative financial instruments, estimated fair value | 62 | 319 | ||
Estimate of Fair Value, Fair Value Disclosure | ||||
Financial assets: | ||||
Securities available for sale | 202,198 | 205,604 | ||
Derivative financial instruments | 62 | 319 | ||
Cash and due from banks, estimated fair value | 16,225 | 10,699 | ||
Interest-bearing deposits in banks, estimated fair value | 8,548 | 7,406 | ||
Nonmarketable equity securities, estimated fair value | 3,297 | 1,367 | ||
Mortgage loans held for sale, estimate of fair value | 1,230 | 400 | ||
Loans held for sale, estimated fair value | 1,085 | |||
Loans, net, estimated fair value | 980,290 | 760,159 | ||
Accrued interest receivable, estimated fair value | 3,521 | 3,106 | ||
Financial liabilities: | ||||
Derivative financial instruments | 62 | 319 | ||
Non-interest bearing deposits, estimated fair value | 247,856 | 196,063 | ||
Interest-bearing deposits, estimated fair value | 836,103 | 668,835 | ||
Other borrowed funds, estimated fair value | 51,110 | 52,566 | ||
Subordinated debt, estimated fair value | 16,182 | 15,164 | ||
Accrued interest payable, estimated fair value | 566 | 545 | ||
Derivative financial instruments, estimated fair value | 62 | 319 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Financial assets: | ||||
Securities available for sale | 0 | 0 | ||
Derivative financial instruments | 0 | 0 | ||
Cash and due from banks, estimated fair value | 16,225 | 10,699 | ||
Interest-bearing deposits in banks, estimated fair value | 8,548 | 7,406 | ||
Nonmarketable equity securities, estimated fair value | 0 | 0 | ||
Mortgage loans held for sale, estimate of fair value | 0 | 0 | ||
Loans held for sale, estimated fair value | 0 | |||
Loans, net, estimated fair value | 0 | 0 | ||
Accrued interest receivable, estimated fair value | 3,521 | 3,106 | ||
Financial liabilities: | ||||
Derivative financial instruments | 0 | 0 | ||
Non-interest bearing deposits, estimated fair value | 247,856 | 196,063 | ||
Interest-bearing deposits, estimated fair value | 508,422 | 372,404 | ||
Other borrowed funds, estimated fair value | 0 | 52,566 | ||
Subordinated debt, estimated fair value | 0 | 0 | ||
Accrued interest payable, estimated fair value | 566 | 545 | ||
Derivative financial instruments, estimated fair value | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) | ||||
Financial assets: | ||||
Securities available for sale | 200,694 | 204,100 | ||
Derivative financial instruments | 62 | 319 | ||
Cash and due from banks, estimated fair value | 0 | 0 | ||
Interest-bearing deposits in banks, estimated fair value | 0 | 0 | ||
Nonmarketable equity securities, estimated fair value | 0 | 0 | ||
Mortgage loans held for sale, estimate of fair value | 0 | 0 | ||
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 | 62 | 319 | ||
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 | 62 | 319 | ||
Significant Unobservable Inputs (Level 3) | ||||
Financial assets: | ||||
Securities available for sale | 1,504 | 1,504 | ||
Derivative financial instruments | 0 | 0 | ||
Cash and due from banks, estimated fair value | 0 | 0 | ||
Interest-bearing deposits in banks, estimated fair value | 0 | 0 | ||
Nonmarketable equity securities, estimated fair value | 3,297 | 1,367 | ||
Mortgage loans held for sale, estimate of fair value | 1,230 | 400 | ||
Loans held for sale, estimated fair value | 1,085 | |||
Loans, net, estimated fair value | 980,290 | 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 | 327,681 | 296,431 | ||
Other borrowed funds, estimated fair value | 51,110 | 0 | ||
Subordinated debt, estimated fair value | 16,182 | 15,164 | ||
Accrued interest payable, estimated fair value | 0 | 0 | ||
Derivative financial instruments, estimated fair value | $ 0 | $ 0 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Collectively evaluated for impairment | $ 3.1 | $ 10.8 |
Collectively evaluated for impairment (as a percent) | 32.00% | 69.00% |
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% | |
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% | |
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% |
Derivatives and Hedging Activ90
Derivatives and Hedging Activities (Details) - Not Designated as Hedging Instrument - Interest Rate Swap - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | |||
Derivative notional value | $ 1,200 | $ 1,300 | |
Derivative financial instruments | 62 | 95 | |
Derivative, gain (loss) on derivative, net | $ 33 | $ 219 | $ 10 |
Unaudited Interim Financial D91
Unaudited Interim Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total interest income | $ 11,749 | $ 11,313 | $ 10,087 | $ 9,628 | $ 9,539 | $ 9,340 | $ 9,067 | $ 8,779 | $ 42,777 | $ 36,725 | $ 35,248 |
Total interest expense | 1,508 | 1,490 | 1,373 | 1,330 | 1,369 | 1,368 | 1,607 | 1,594 | 5,701 | 5,938 | 6,348 |
Net interest income | 10,241 | 9,823 | 8,714 | 8,298 | 8,170 | 7,972 | 7,460 | 7,185 | 37,076 | 30,787 | 28,900 |
Provision for loan losses | 183 | 383 | 500 | 0 | (516) | (812) | (749) | 0 | 1,066 | (2,077) | 3,000 |
Total noninterest income | 898 | 2,773 | 1,241 | 555 | 762 | 769 | 521 | 445 | 5,467 | 2,497 | 3,293 |
Total noninterest expense | 6,919 | 7,059 | 6,132 | 5,936 | 5,050 | 5,136 | 5,199 | 5,157 | 26,046 | 20,542 | 20,573 |
Income before income taxes | 4,037 | 5,154 | 3,323 | 2,917 | 4,398 | 4,418 | 3,531 | 2,437 | 15,431 | 14,819 | 8,620 |
Income taxes | 1,358 | 1,019 | 1,058 | 889 | 1,475 | 1,471 | 1,189 | 867 | 4,324 | 5,000 | 2,737 |
Net income | $ 2,679 | $ 4,135 | $ 2,265 | $ 2,028 | $ 2,923 | $ 2,947 | $ 2,342 | $ 1,606 | $ 11,107 | $ 9,819 | $ 5,883 |
Basic earnings per share (in dollars per share) | $ 0.16 | $ 0.24 | $ 0.13 | $ 0.12 | $ 0.17 | $ 0.17 | $ 0.14 | $ 0.10 | $ 0.65 | $ 0.58 | $ 0.32 |
Diluted earnings per share (in dollars per share) | $ 0.15 | $ 0.24 | $ 0.13 | $ 0.12 | $ 0.17 | $ 0.17 | $ 0.14 | $ 0.09 | $ 0.64 | $ 0.57 | $ 0.32 |