Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 03, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | STXB | |
Entity Registrant Name | Spirit of Texas Bancshares, Inc. | |
Entity Central Index Key | 1,499,453 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 9,787,449 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | |
Assets: | |||
Cash and due from banks | $ 17,181 | $ 19,054 | |
Interest-bearing deposits in other banks | 35,805 | 38,895 | |
Total cash and cash equivalents | 52,986 | 57,949 | |
Time deposits in other banks | 245 | 245 | |
Investment securities: | |||
Available for sale securities, at fair value | 34,519 | 37,243 | |
Total investment securities | 34,519 | 37,243 | |
Loans held for sale | 7,715 | 3,814 | |
Loans: | |||
Loans held for investment | [1] | 917,521 | 869,119 |
Less: allowance for loan and lease losses | (6,015) | (5,652) | |
Loans, net | 911,506 | 863,467 | |
Premises and equipment, net | 44,945 | 42,189 | |
Accrued interest receivable | 3,195 | 3,466 | |
Other real estate owned and repossessed assets | 289 | 21 | |
Goodwill | 4,485 | 4,485 | |
Core deposit intangible | 3,135 | 3,486 | |
SBA servicing asset | 3,521 | 3,411 | |
Deferred tax asset, net | 1,616 | 1,480 | |
Bank-owned life insurance | 482 | 479 | |
Federal Home Loan Bank and other bank stock, at cost | 4,830 | 4,812 | |
Other assets | 3,207 | 3,751 | |
Total assets | 1,076,676 | 1,030,298 | |
Transaction accounts: | |||
Noninterest-bearing | 183,618 | 176,726 | |
Interest-bearing | 220,087 | 250,491 | |
Total transaction accounts | 403,705 | 427,217 | |
Time deposits | 440,978 | 408,151 | |
Total deposits | 844,683 | 835,368 | |
Accrued interest payable | 431 | 407 | |
Short-term borrowings | 15,000 | 15,000 | |
Long-term borrowings | 66,191 | 76,411 | |
Other liabilities | 2,385 | 3,973 | |
Total liabilities | 928,690 | 931,159 | |
Commitments and contingencies (Note 11) | |||
Stockholders' Equity: | |||
Preferred stock, $1 par value; 5 million shares authorized; 0 shares issued and outstanding | |||
Common stock, no par value; 50 million shares authorized; 9,786,611 and 7,280,183 shares issued and outstanding | 127,344 | 82,615 | |
Retained earnings | 21,719 | 17,025 | |
Accumulated other comprehensive income (loss) | (1,077) | (501) | |
Total stockholders' equity | 147,986 | 99,139 | |
Total liabilities and stockholders' equity | $ 1,076,676 | $ 1,030,298 | |
[1] | Balance includes $(3.4) million and $(3.4) million of deferred fees, cost, premium and discount as of June 30, 2018 and December 31, 2017, respectively. |
CONSOLIDATED BALANCE SHEETS (U3
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0 | $ 0 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares, issued | 9,786,611 | 7,280,183 |
Common stock, shares, outstanding | 9,786,611 | 7,280,183 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Interest income: | ||||
Interest and fees on loans | $ 13,078 | $ 11,228 | $ 25,369 | $ 21,673 |
Interest and dividends on investment securities | 195 | 114 | 409 | 114 |
Other interest income | 215 | 278 | 363 | 584 |
Total interest income | 13,488 | 11,620 | 26,141 | 22,371 |
Interest expense: | ||||
Interest on deposits | 1,941 | 1,644 | 3,672 | 3,229 |
Interest on FHLB advances and other borrowings | 465 | 384 | 1,006 | 775 |
Total interest expense | 2,406 | 2,028 | 4,678 | 4,004 |
Net interest income | 11,082 | 9,592 | 21,463 | 18,367 |
Provision for loan losses | 635 | 650 | 974 | 1,200 |
Net interest income after provision for loan losses | 10,447 | 8,942 | 20,489 | 17,167 |
Noninterest income: | ||||
Service charges and fees | 419 | 349 | 776 | 733 |
SBA loan servicing fees | 548 | 625 | 1,172 | 1,171 |
Mortgage referral fees | 208 | 243 | 364 | 373 |
Gain on sales of loans, net | 1,041 | 2,288 | 2,515 | 3,318 |
Gain (loss) on sales of other assets | 7 | 45 | (25) | 23 |
Other noninterest income | 80 | 4 | 89 | 11 |
Total noninterest income | 2,303 | 3,554 | 4,891 | 5,629 |
Noninterest expense: | ||||
Salaries and employee benefits | 6,043 | 5,899 | 12,901 | 12,503 |
Occupancy and equipment expenses | 1,221 | 1,302 | 2,457 | 2,503 |
Loan and other real estate related expenses | 14 | 101 | 77 | 224 |
Professional services | 314 | 476 | 625 | 749 |
Data processing and network | 321 | 313 | 634 | 582 |
Regulatory assessments and insurance | 266 | 236 | 521 | 468 |
Amortization of intangibles | 175 | 175 | 351 | 351 |
Advertising | 102 | 157 | 217 | 284 |
Marketing | 121 | 150 | 239 | 281 |
Telephone expense | 114 | 81 | 212 | 216 |
Other operating expenses | 690 | 604 | 1,273 | 1,243 |
Total noninterest expense | 9,381 | 9,494 | 19,507 | 19,404 |
Income before income tax expense | 3,369 | 3,002 | 5,873 | 3,392 |
Income tax expense | 688 | 993 | 1,179 | 1,164 |
Net income | $ 2,681 | $ 2,009 | $ 4,694 | $ 2,228 |
Earnings per common share: | ||||
Basic | $ 0.30 | $ 0.28 | $ 0.58 | $ 0.31 |
Diluted | $ 0.29 | $ 0.27 | $ 0.56 | $ 0.29 |
Weighted average common shares outstanding: | ||||
Basic | 8,851,446 | 7,273,351 | 8,104,370 | 7,187,125 |
Diluted | 9,306,029 | 7,568,921 | 8,445,960 | 7,482,695 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 2,681 | $ 2,009 | $ 4,694 | $ 2,228 |
Other comprehensive income (loss): | ||||
Unrealized net holding gains (losses) on investment securities available for sale, net of taxes of $17, $66, $153 and $66, respectively | (65) | (128) | (576) | (128) |
Total other comprehensive income (loss) | (65) | (128) | (576) | (128) |
Total comprehensive income | $ 2,616 | $ 1,881 | $ 4,118 | $ 2,100 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Unrealized net holding gains (losses) on investment securities available for sale, tax | $ 17 | $ 66 | $ 153 | $ 66 |
Reclassification adjustment for realized (gains) losses on investment securities available for sale included in net income, tax | $ 0 | $ 0 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Preferred Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance at Dec. 31, 2016 | $ 92,896 | $ 78,871 | $ 1,753 | $ 12,272 | |
Balance (in shares) at Dec. 31, 2016 | 7,069,527 | 170,236 | |||
Net income | 2,228 | 2,228 | |||
Conversion of preferred stock | $ 1,753 | $ (1,753) | |||
Conversion of preferred stock (in shares) | 170,236 | (170,236) | |||
Exercise of stock options | 446 | $ 446 | |||
Exercise of stock options (in shares) | 38,000 | ||||
Stock-based compensation | 1,160 | $ 1,160 | |||
Other comprehensive income (loss) | (128) | $ (128) | |||
Balance at Jun. 30, 2017 | 96,602 | $ 82,230 | 14,500 | (128) | |
Balance (in shares) at Jun. 30, 2017 | 7,277,763 | ||||
Balance at Dec. 31, 2017 | 99,139 | $ 82,615 | 17,025 | (501) | |
Balance (in shares) at Dec. 31, 2017 | 7,280,183 | ||||
Net income | 4,694 | 4,694 | |||
Shares issued in offering, net | 42,219 | $ 42,219 | |||
Shares issued in offering, net (in shares) | 2,300,000 | ||||
Exercise of stock options and warrants | 2,185 | $ 2,185 | |||
Exercise of stock options and warrants (in shares) | 206,428 | ||||
Stock-based compensation | 325 | $ 325 | |||
Other comprehensive income (loss) | (576) | (576) | |||
Balance at Jun. 30, 2018 | $ 147,986 | $ 127,344 | $ 21,719 | $ (1,077) | |
Balance (in shares) at Jun. 30, 2018 | 9,786,611 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash Flows From Operating Activities: | ||
Net income | $ 4,694 | $ 2,228 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Provision for loan losses | 974 | 1,200 |
Depreciation and amortization | 945 | 882 |
Net amortization (accretion) of premium (discount) on investment securities | 162 | 57 |
Amortization of intangible assets | 351 | 351 |
Accretion of discount on retained SBA loans | (560) | (389) |
Deferred tax expense (benefit) | 17 | (366) |
Originations of loans held for sale | (34,082) | (37,898) |
Proceeds from loans held for sale | 32,740 | 41,764 |
Net gains on sale of loans held for sale | (2,515) | (3,318) |
Gain (loss) on sale of other real estate owned | 3 | (23) |
Fair value adjustment on SBA servicing asset | 469 | 382 |
Stock-based compensation | 325 | 1,160 |
Increase in cash surrender value of BOLI | (3) | (1) |
Net change in operating assets and liabilities: | ||
Net change in accrued interest receivable | 271 | (223) |
Net change in accrued interest payable | 24 | 92 |
Net change in other assets | 544 | (1,266) |
Net change in other liabilities | (1,588) | 1,707 |
Net cash provided by (used in) operating activities | 2,771 | 6,339 |
Cash Flows From Investing Activities: | ||
Purchase of investment securities available for sale | (39,447) | |
Paydown and maturities of investment securities available for sale | 1,833 | 254 |
Net purchase of FHLB and other bank stock | (18) | (28) |
Proceeds from the sale of loans held for investment | 1,451 | |
Net change in loans | (50,816) | (64,875) |
Proceeds from the sale of other real estate owned | 18 | 171 |
Purchase of premises and equipment | (3,701) | (2,990) |
Proceeds from the sale of premises and equipment | 55 | |
Net cash provided by (used in) investing activities | (51,233) | (106,860) |
Cash Flows From Financing Activities: | ||
Net change in deposits | 9,315 | 21,766 |
Proceeds from long-term borrowings | 7,684 | |
Repayment of long-term borrowings | (10,220) | (3,125) |
Proceeds from short-term borrowings | 10,000 | 5,000 |
Repayment of short-term borrowings | (10,000) | (5,000) |
Shares issued in offering, net | 42,219 | |
Exercise of stock options and warrants | 2,185 | 446 |
Net cash provided by (used in) financing activities | 43,499 | 26,771 |
Net Change in Cash and Cash Equivalents | (4,963) | (73,750) |
Cash and Cash Equivalents at Beginning of Period | 57,949 | 152,232 |
Cash and Cash Equivalents at End of Period | 52,986 | 78,482 |
Supplemental Disclosures of Cash Flow Information: | ||
Interest paid | 3,648 | 3,137 |
Income taxes paid | 2,050 | 435 |
Supplemental disclosure of noncash investing and financing activities: | ||
Transfer of loans to other real estate owned and repossessed assets | $ 289 | $ 450 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Spirit of Texas Bancshares, Inc. (the “Holding Company” or “Company”) is a bank holding company headquartered in Conroe, Texas that provides, through its bank subsidiary, a variety of financial services to individuals and corporate customers in Texas, which are primarily agricultural, light industrial and commercial areas. On March 16, 2017, the Company filed a Second Amended and Restated Certificate of Formation with the Texas Secretary of State to affect a reverse stock split of its outstanding common stock which became effective on March 16, 2017. As a result of the reverse stock split, every two shares of the Company’s issued and outstanding common stock were consolidated into one issued and outstanding share of common stock. The computations of all share and per share amounts in this Quarterly Report on Form 10-Q (this “Form 10-Q”) have been adjusted retroactively to reflect the reverse stock split. The Company consummated the underwritten initial public offering of its common stock in May 2018. In connection with the initial public offering, the Company issued and sold 2,300,000 shares of its common stock, including 300,000 shares of common stock sold pursuant to the underwriters’ full exercise of their option to purchase additional shares, at an offering price of $21.00 per share, for aggregate gross proceeds of $48.3 million before deducting underwriting discounts and offering expenses, and aggregate net proceeds of $42.2 million after deducting underwriting discounts and offering expenses. Basis of Presentation The consolidated financial statements include the accounts of the Holding Company and the accounts of its wholly-owned subsidiary, Spirit of Texas Bank SSB (the “Bank”). All significant intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. Operating results for the period ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 and should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2017 included in our prospectus filed with the Securities and Exchange Commission (“SEC”) pursuant to Rule 424(b) of the Securities Act of 1933, as amended, on May 4, 2018, related to our initial public offering In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for the fair presentation of these consolidated financial statements have been included. The preparation of financial statements in conformity with these accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and income and expense during the reporting periods and the related disclosures. Although management’s estimates and assumptions are based on current expectations, estimates, forecasts and projections about future performance of the Company, such estimates and assumptions are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult for the Company to assess. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period. Accounting Policies Recently Adopted and Pending Accounting Pronouncements Accounting Standards Update (ASU) 2018-09, “Codification Improvements.” Issued in July 2018, ASU No. 2018-09 makes changes to a variety of topics to clarify, correct errors in, or make minor improvements to the Accounting Standards Codification. The majority of the amendments in ASU 2018-09 will be effective in annual periods beginning after December 15, 2018. Management is currently evaluating the effects the adoption of ASU 2018-09 will have on the consolidated financial statements, results of operations and cash flows. ASU 2018-07, “Compensation-Stock Compensation.” Issued in June 2018, ASU 2018-07 expands the scope of ASC 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The amendments also clarify that ASC 718 does not apply to share-based payments used to provide either financing to the issuer or awards granted in conjunction with selling goods or services to customers under a contract subject to ASC 606, Revenue from Contracts with Customers. The amendments of ASU 2018-07 are effective for public entities for interim and annual periods beginning after December 15, 2018 and for other entities for periods beginning after December 15, 2019. Management will adopt ASU 2018-07 using the public company effective date as early adoption is permitted and is currently evaluating the impact the ASU will have on the consolidated financial statements. ASU 2017-08, “Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.” Issued in March 2017, ASU 2017-08 amends the amortization period for certain purchased callable debt securities held at a premium. In particular, the amendments in ASU 2017-08 require the premium to be amortized to the earliest call date. The amendments do not, however, require an accounting change for securities held at a discount; instead, the discount continues to be amortized to maturity. Notably, the amendments in this ASU more closely align the amortization period of premiums and discounts to expectations incorporated in market pricing on the underlying securities. Securities within the scope of ASU 2017-08 are purchased debt securities that have explicit, non-contingent call features that are callable at fixed prices and on preset dates. The amendments of ASU 2017-08 become effective for public entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018 and for other entities for periods beginning after December 15, 2019. Management will adopt this ASU using the public company effective date as early adoption is permitted and is currently evaluating the impact this ASU will have on the consolidated financial statements; however, the adoption of ASU 2017-08 is not expected to have a material impact on the Company’s consolidated financial statements. ASU 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” Issued in January 2017, ASU 2017-04 simplifies the manner in which an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit's goodwill with the carrying amount of that goodwill. In computing the implied fair value of goodwill under Step 2, an entity, prior to the amendments in ASU 2017-04, had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities, including unrecognized assets and liabilities, in accordance with the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. However, under the amendments in ASU 2017-04, an entity should (1) perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and (2) recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, with the understanding that the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, ASU 2017-04 removes the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails such qualitative test, to perform Step 2 of the goodwill impairment test. ASU 2017-04 is effective prospectively for public entities for annual, or any interim, goodwill impairment tests in fiscal years beginning after December 15, 2019 and for all other entities for impairment tests in fiscal years beginning after December 15, 2021. Management will adopt this ASU using the public company effective date as early adoption is permitted and will continue to evaluate the impact this ASU will have on the consolidated financial statements through its effective date; however, the adoption of ASU 2017-04 is not expected to have a material impact on the Company ’s consolidated financial statements. ASU 2017-01, “Business Combinations (Topic 805) - Clarifying the Definition of a Business.” Issued in January 2017, ASU 2017-01 clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses, which determines whether goodwill should be recorded or not. The amendments in ASU No. 2017-01 provide a screen to determine when a set of assets and activities (collectively, a “set”) is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated. If, however, the screen is not met, then the amendments in ASU 2017-01 require that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and remove the evaluation of whether a market participant could replace missing elements. The revised definition will result in more transactions being recorded as asset acquisitions or dispositions as opposed to business acquisitions or dispositions. The amendments of ASU 2017-01 are effective for public business entities for fiscal years beginning after December 15, 2017, and for private companies for fiscal years beginning after December 15, 2018. Management has elected to adopt this ASU using the private company effective date and is currently evaluating the impact this ASU will have on the consolidated financial statements; however, the adoption of ASU 2017-01 is not expected to have a material impact on the Company ’s consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory." ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” Issued in June 2016, ASU 2016-13 will add FASB ASC Topic 326, “Financial Instruments-Credit Losses” and finalizes amendments to FASB ASC Subtopic 825-15, “Financial Instruments-Credit Losses.” The amendments of ASU 2016-13 are intended to provide financial statement users with more decision-useful information related to expected credit losses on financial instruments and other commitments to extend credit by replacing the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to determine credit loss estimates. The amendments of ASU 2016-13 eliminate the probable initial recognition threshold and, in turn, reflect an entity’s current estimate of all expected credit losses. ASU 2016-13 does not specify the method for measuring expected credit losses, and an entity is allowed to apply methods that reasonably reflect its expectations of the credit loss estimate. Additionally, the amendments of ASU 2016-13 require that credit losses on available for sale debt securities be presented as an allowance rather than as a write-down. The amendments of ASU 2016-13 are effective for public entities for interim and annual periods beginning after December 15, 2019 and for all other entities for periods beginning after December 15, 2020. Earlier application is permitted for interim and annual periods beginning after December 15, 2018. Management has elected to adopt this ASU using the private company effective date and is currently evaluating the impact this ASU will have on the consolidated financial statements and that evaluation will depend on economic conditions and the composition of the Company’s loan and lease portfolio at the time of adoption. ASU 2016-02, “Leases (Topic 842).” Issued in February 2016, ASU 2016-02 was issued by the FASB to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and by disclosing key information about leasing arrangements. ASU 2016-02 will, among other things, require lessees to recognize a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 does not significantly change lease accounting requirements applicable to lessors; however, the ASU contains some targeted improvements that are intended to align, where necessary, lessor accounting with the lessee accounting model and with the updated revenue recognition guidance issued in 2014. The amendments of ASU 2016-02 are effective for public entities for interim and annual periods beginning after December 15, 2018 and for other entities for periods beginning after December 15, 2019. The adoption of this ASU will result in an increase to the Consolidated Balance Sheets for right-of-use assets and associated lease liabilities for operating leases in which the Company is the lessee. Additionally, i n July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases and ASU No. 2018-11, Leases, Targeted Improvements. The amendments in these updates provide additional clarification and implementation guidance on certain aspects of ASU 2016-02 and have the same effective and transition requirements as ASU 2016-02. Specifically, ASU 2018-11 creates an additional transition method option allowing entities to record a cumulative effect adjustment to opening retained earnings in the year of adoption. Management will adopt these ASU’s using the public company effective date as early adoption is permitted and is currently evaluating the impact to the consolidated financial statements, specifically, we are in the process of reviewing service contracts to determine if right-of-use assets exist. ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” Issued in May 2014, ASU 2014-09 will add FASB ASC Topic 606, “Revenue from Contracts with Customers,” and will supersede revenue recognition requirements in FASB ASC Topic 605, “Revenue Recognition,” as well as certain cost guidance in FASB ASC Topic 605-35, “Revenue Recognition – Construction-Type and Production-Type Contracts.” ASU 2014-09 provides a framework for revenue recognition that replaces the existing industry and transaction specific requirements under the existing standards. ASU 2014-09 requires an entity to apply a five-step model to determine when to recognize revenue and at what amount. The model specifies that revenue should be recognized when (or as) an entity transfers control of goods or services to a customer at the amount in which the entity expects to be entitled. Depending on whether certain criteria are met, revenue should be recognized either over time, in a manner that depicts the entity’s performance, or at a point in time, when control of the goods or services are transferred to the customer. ASU 2014-09 provides that an entity should apply the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the entity satisfies a performance obligation. In addition, the existing requirements for the recognition of a gain or loss on the transfer of non-financial assets that are not in a contract with a customer are amended to be consistent with the guidance on recognition and measurement in ASU 2014-09. The amendments of ASU 2014-09 may be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application. If the transition method of application is elected, the entity should also provide the additional disclosures in reporting periods that include the date of initial application of (1) the amount by which each financial statement line item is affected in the current reporting period, as compared to the guidance that was in effect before the change, and (2) an explanation of the reasons for significant changes. issued in August 2015, defers the effective date of ASU 2014-09 by one year. ASU 2015-14 provides that the amendments of ASU 2014-09 become effective for public business entities for fiscal years beginning after December 15, 2017, and for private companies for fiscal years beginning after December 15, 2018. All subsequently issued ASU’s which provide additional guidance and clarifications to various aspects of FASB ASC Topic 606 will become effective when the amendments of ASU 2014-09 become effective. These subsequently issued ASU’s include ASU 2016-08 ASU 2016-10 and ASU 2016-12 These amendments clarify the main provisions of ASU-2014-09 with respect to specific revenue types based upon implementation questions submitted. Specifically, revenue in which a third party satisfies a portion of the performance obligations, revenue from licensing activities, and the assessment of collectability, treatment of sales taxes, non-cash consideration, and contract modifications at transition. Management has elected to adopt this ASU using the private company effective date and has completed an analysis to determine which revenue streams are within the scope of ASU 2014-09 and the related clarifying ASU’s and has determined that interest income and revenue generated from transfers and servicing of financial instruments, specifically, gain on sale of loans and servicing fees are out of scope. Management will adopt this ASU using the modified retrospective method of application and is continuing to evaluate the impact that ASU 2014-09 and the related clarifying ASU’s will have on in scope revenue streams, specifically, service charges and fees, mortgage referral fees, and gains or losses on other real estate owned. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Investment Securities | NOTE 2. INVESTMENT SECURITIES The amortized cost, gross unrealized gains and losses and approximate fair values of securities available for sale are as follows: Amortized Unrealized Fair June 30, 2018 Cost Gains Losses Value (Dollars in thousands) Available for sale: U.S. Government agencies $ 2,013 $ — $ 109 $ 1,904 Residential mortgage-backed securities 28,180 — 1,072 27,108 Corporate bonds and other debt securities 5,689 — 182 5,507 Total available for sale $ 35,882 $ — $ 1,363 $ 34,519 Amortized Unrealized Fair December 31, 2017 Cost Gains Losses Value (Dollars in thousands) Available for sale: — U.S. Government agencies $ 2,010 $ — $ 61 $ 1,949 Residential mortgage-backed securities 30,156 — 527 29,629 Corporate bonds and other debt securities 5,711 — 46 5,665 Total available for sale $ 37,877 $ — $ 634 $ 37,243 There were no securities pledged at June 30, 2018 or December 31, 2017, respectively. The amortized cost and estimated fair value of securities available for sale, by contractual maturity, are as follows: Amortized Fair June 30, 2018 Cost Value (Dollars in thousands) Available for sale: Due in one year or less $ — $ — Due after one year through five years 4,125 4,003 Due after five years through ten years 3,100 2,957 Due after ten years 477 451 Residential mortgage-backed securities 28,180 27,108 Total available for sale $ 35,882 $ 34,519 For purposes of the maturity table, residential mortgage-backed securities, the principal of which are repaid periodically, are presented as a single amount. The expected lives of these securities will differ from contractual maturities because borrowers may have the right to prepay the underlying loans with or without prepayment penalties. The following tables present the estimated fair values and gross unrealized losses on investment securities available for sale, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position as of the periods presented: Less than 12 Months 12 Months or More Total June 30, 2018 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss (Dollars in thousands) Available for sale: U.S. Government agencies $ 451 $ 26 $ 1,453 $ 83 $ 1,904 $ 109 Residential mortgage-backed securities 4,604 184 22,503 888 27,107 1,072 Corporate bonds and other debt securities 3,571 119 1,936 63 5,507 182 Total available for sale $ 8,626 $ 329 $ 25,892 $ 1,034 $ 34,518 $ 1,363 Less than 12 Months 12 Months or More Total December 31, 2017 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss (Dollars in thousands) Available for sale: U.S. Government agencies $ 1,949 $ 61 $ — $ — $ 1,949 $ 61 Residential mortgage-backed securities 29,627 527 — — 29,627 527 Corporate bonds and other debt securities 5,665 46 — — 5,665 46 Total available for sale $ 37,241 $ 634 $ — $ — $ 37,241 $ 634 At June 30, 2018, the Company’s securities portfolio consisted of 50 securities, 49 of which were in an unrealized loss position. 12 of the 49 securities in an unrealized loss position at June 30, 2018 were in an unrealized loss position for less than 12 months. The unrealized losses for these securities resulted primarily from changes in interest rates and spreads. The Company monitors its investment securities for other-than-temporary-impairment (“OTTI”). Impairment is evaluated on an individual security basis considering numerous factors, and its relative significance. The Company has evaluated the nature of unrealized losses in the investment securities portfolio to determine if OTTI exists. The unrealized losses relate to changes in market interest rates and specific market conditions that do not represent credit-related impairments. Furthermore, the Company does not intend to sell nor is it more likely than not that it will be required to sell these investments before the recovery of their amortized cost basis. Management has completed an assessment of each security in an unrealized loss position for credit impairment and has determined that no individual security was other-than-temporarily impaired at June 30, 2018. The following describes the basis under which the Company has evaluated OTTI: U.S. Government Agencies and Residential Mortgage-Backed Securities (“MBS”): The unrealized losses associated with U.S. Government agencies and residential MBS are primarily driven by changes in interest rates. These securities have either an explicit or implicit U.S. government guarantee. Corporate Bonds & Other Debt Securities: Securities are generally underwritten in accordance with the Company’s investment standards prior to the decision to purchase, without relying on a bond issuer’s guarantee in making the investment decision. These investments are investment grade and will continue to be monitored as part of the Company’s ongoing impairment analysis, but are expected to perform in accordance with their terms. There were no securities sold for the three or six months ended June 30, 2018 or 2017. |
Loans, Net
Loans, Net | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Loans, Net | NOTE 3. LOANS, NET Loans consisted of the following at June 30, 2018 and December 31, 2017: June 30, 2018 December 31, 2017 (Dollars in thousands) Commercial and industrial loans (1) $ 149,988 $ 135,040 Real estate: 1-4 single family residential loans 238,606 232,510 Construction, land and development 152,558 139,470 Commercial real estate loans (including multifamily) 305,405 285,731 Consumer loans and leases 19,588 22,736 Municipal and other loans 51,376 53,632 Total loans held in portfolio (2) $ 917,521 $ 869,119 Allowance for loan losses (6,015 ) (5,652 ) Loans held in portfolio, net $ 911,506 $ 863,467 (1) Balance includes $72.4 million and $67.1 million of the unguaranteed portion of SBA loans as of June 30, 2018 and December 31, 2017, respectively. (2) Balance includes $(3.4) million and $(3.4) million of deferred fees, cost, premium and discount as of June 30, 2018 and December 31, 2017, respectively. At June 30, 2018 and December 31, 2017, the Company had pledged loans as collateral for FHLB advances of $362.8 million and $358.2 million, respectively. There were no recorded investments of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process as of June 30, 2018 and December 31, 2017. The Company originates and sells loans secured by the SBA. The Company retains the unguaranteed portion of the loan and servicing on the loans sold and receives a fee based upon the principal balance outstanding. During the three months ended June 30, 2018 and 2017, the Company sold approximately $12.9 million and $21.9 million, respectively, in loans to third parties. The loan sales resulted in realized gains of $1.0 million and $2.3 million for the three months ended June 30, 2018 and 2017, respectively. During the six months ended June 30, 2018 and 2017, the Company sold approximately $30.0 million and $35.4 million, respectively, in loans to third parties. The loan sales resulted in realized gains of $2.5 million and $3.3 million for the six months ended June 30, 2018 and 2017, respectively. During the three months ended June 30, 2018, the Company sold a loan to one of its directors for $1.5 million. No gain or loss was recognized on this transaction. In the ordinary course of business, the Company makes loans to executive officers and directors. Loans to these related parties, including companies in which they are principal owners, are as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (Dollars in thousands) Principal outstanding, beginning of year $ 442 $ 541 $ 463 $ 9,036 Additions (reductions) of affiliations — (717 ) — (8,425 ) New loans made in current year — — — — Repayments (1) (21 ) 692 (42 ) (95 ) Principal outstanding, end of year $ 421 $ 516 $ 421 $ 516 (1) During the three months ended June 30, 2017 there was a reclassification of repayments to reductions of affiliations. There were no unfunded commitments to related parties at June 30, 2018 or December 31, 2017. |
Allowance for Loan and Lease Lo
Allowance for Loan and Lease Losses | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Allowance for Loan and Lease Losses | NOTE 4. ALLOWANCE FOR LOAN AND LEASE LOSSES The allowance for loan and lease losses is a reserve established through a provision for loan losses charged to expense, which represents management’s best estimate of probable losses that have been incurred within the existing portfolio of loans. The allowance, in the judgment of management, is necessary to reserve for estimated loan losses and risks inherent in the loan portfolio. The methodology is based on historical loss experience by type of credit and internal risk grade, changes in the composition and volume of the portfolio, and specific loss allocations, with adjustments for current events and conditions. The Company’s process for determining the appropriate level of the allowance for loan and lease losses is designated to account for credit deterioration as it occurs. During 2017, the Company refined its allowance for loan loss methodology based upon management’s judgment and applicable regulatory guidance. The calculation of reserves on loans collectively evaluated for impairment was altered to reflect five years of historical loss experience which more appropriately matches the weighted average life of loans in the portfolio. Additionally, the calculated historical loss experience is now allocated across the portfolio’s risk rates using a probability of default curve constructed from the Bank’s historical default data. Management also updated the qualitative component of the reserve on loans collectively evaluated for impairment to allow for a greater sensitivity to current trends. Prior to the second quarter of 2018, the Company was utilizing a peer bank allowance coverage ratio in the qualitative reserve calculation, as the Company did not have enough historical defaults to rely on its own loss factors. As of June 30, 2018, the Company had a sufficient amount of defaults over the five year lookback period to transition over to relying more on its own historical loss data versus peer data. While this did not result in a significant change to the allowance for loan and lease losses as a whole, it did result in increasing the provision for certain loan categories that the Company had experienced more historical defaults. The following tables present information related to allowance for loan and lease losses for the periods presented: Allowance Rollforward Three Months Ended June 30, 2018 Beginning Balance Charge-offs Recoveries Provision Ending Balance (Dollars in thousands) Commercial and industrial loans $ 2,906 $ (321 ) $ 3 $ 2,298 $ 4,886 Real estate: 1-4 single family residential loans 887 (5 ) — (564 ) 318 Construction, land and development loans 540 — — (345 ) 195 Commercial real estate loans (including multifamily) 1,032 — — (799 ) 233 Consumer loans and leases 175 (24 ) — 195 346 Municipal and other loans 187 — — (150 ) 37 Ending allowance balance $ 5,727 $ (350 ) $ 3 $ 635 $ 6,015 Allowance Rollforward Three Months Ended June 30, 2017 Beginning Balance Charge-offs Recoveries Provision Ending Balance (Dollars in thousands) Commercial and industrial loans $ 2,451 $ (280 ) $ 2 $ 409 $ 2,582 Real estate: 1-4 single family residential loans 676 — — 56 732 Construction, land and development loans 380 — — 32 412 Commercial real estate loans (including multifamily) 697 — — 103 800 Consumer loans and leases 194 (31 ) — 41 204 Municipal and other loans 152 — — 9 161 Ending allowance balance $ 4,550 $ (311 ) $ 2 $ 650 $ 4,891 Allowance Rollforward Six Months Ended June 30, 2018 Beginning Balance Charge-offs Recoveries Provision Ending Balance (Dollars in thousands) Commercial and industrial loans $ 3,046 $ (645 ) $ 69 $ 2,416 $ 4,886 Real estate: 1-4 single family residential loans 902 (5 ) — (579 ) 318 Construction, land and development loans 441 — — (246 ) 195 Commercial real estate loans (including multifamily) 898 — — (665 ) 233 Consumer loans and leases 198 (30 ) — 178 346 Municipal and other loans 167 — — (130 ) 37 Ending allowance balance $ 5,652 $ (680 ) $ 69 $ 974 $ 6,015 Allowance Rollforward Six Months Ended June 30, 2017 Beginning Balance Charge-offs Recoveries Provision Ending Balance (Dollars in thousands) Commercial and industrial loans $ 2,347 $ (540 ) $ 2 $ 773 $ 2,582 Real estate: 1-4 single family residential loans 647 — — 85 732 Construction, land and development loans 364 — — 48 412 Commercial real estate loans (including multifamily) 667 (15 ) — 148 800 Consumer loans and leases 186 (113 ) — 131 204 Municipal and other loans 146 — — 15 161 Ending allowance balance $ 4,357 $ (668 ) $ 2 $ 1,200 $ 4,891 Credit Quality Indicators In evaluating credit risk, the Company looks at multiple factors; however, management considers delinquency status to be the most meaningful indicator of the credit quality of 1-4 single family residential, home equity loans and lines of credit and consumer loans. Delinquency statistics are updated at least monthly. Internal risk ratings are considered the most meaningful indicator of credit quality for commercial, construction, land and development and commercial real estate loans. Internal risk ratings are updated on a continuous basis. The following tables present an aging analysis of the recorded investment for delinquent loans by portfolio and segment: Accruing June 30, 2018 Current 30 to 59 Days Past Due 60 to 89 Days Past Due 90 Days or More Past Due Non- Accrual Total (Dollars in thousands) Commercial and industrial loans $ 147,256 $ 321 $ - $ 1 $ 2,410 $ 149,988 Real estate: 1-4 single family residential loans 236,481 423 345 — 1,357 238,606 Construction, land and development 152,523 11 — — 24 152,558 Commercial real estate loans (including multifamily) 305,258 — — — 147 305,405 Consumer loans and leases 19,363 125 — — 100 19,588 Municipal and other loans 51,376 — — — — 51,376 Total loans $ 912,257 $ 880 $ 345 $ 1 $ 4,038 $ 917,521 Accruing December 31, 2017 Current 30 to 59 Days Past Due 60 to 89 Days Past Due 90 Days or More Past Due Non- Accrual Total (Dollars in thousands) Commercial and industrial loans $ 132,775 $ 302 $ 3 $ 33 $ 1,927 $ 135,040 Real estate: 1-4 single family residential loans 230,738 637 — — 1,135 232,510 Construction, land and development 139,470 — — — — 139,470 Commercial real estate loans (including multifamily) 284,869 415 — — 447 285,731 Consumer loans and leases 22,538 98 47 — 53 22,736 Municipal and other loans 53,632 — — — — 53,632 Total loans $ 864,022 $ 1,452 $ 50 $ 33 $ 3,562 $ 869,119 There was one loan past due greater than 90 days or more and still accruing at June 30, 2018 with a recorded investment of $1 thousand. There was one loan past due greater than 90 days or more and still accruing at December 31, 2017 with a recorded investment of $33 thousand. At June 30, 2018, non-accrual loans that were 30 to 59 days past due were $511 thousand, non-accrual loans that were 60 to 89 days past due were $458 thousand, and non-accrual loans that were 90 days or more past due were $840 thousand. At December 31, 2017, non-accrual loans that were 30 to 59 days past due were $209 thousand, non-accrual loans that were 60 to 89 days past due were $57 thousand, and non-accrual loans that were 90 days or more past due were $427 thousand. Loans exhibiting potential credit weaknesses that deserve management’s close attention and that if left uncorrected may result in deterioration of the repayment capacity of the borrower are categorized as special mention. Loans with well-defined credit weaknesses including payment defaults, declining collateral values, frequent overdrafts, operating losses, increasing balance sheet leverage, inadequate cash flow, project cost overruns, unreasonable construction delays, past due real estate taxes or exhausted interest reserves are assigned an internal risk rating of substandard. Loans classified as substandard can be on an accrual or non-accrual basis, as determined by its unique characteristics. A loan with a weakness so severe that collection in full is highly questionable or improbable will be assigned an internal risk rating of doubtful. The following table summarizes the Company’s loans by key indicators of credit quality: June 30, 2018 Pass Special Mention Substandard Doubtful (Dollars in thousands) Commercial and industrial loans $ 143,314 $ 2,848 $ 3,826 $ — Real estate: 1-4 single family residential loans 236,099 241 2,266 — Construction, land and development 150,740 11 1,807 — Commercial real estate loans (including multifamily) 302,702 280 2,423 — Consumer loans and leases 19,389 — 199 — Municipal and other loans 51,376 — — — Total loans $ 903,620 $ 3,380 $ 10,521 $ — December 31, 2017 Pass Special Mention Substandard Doubtful (Dollars in thousands) Commercial and industrial loans $ 129,288 $ 2,331 $ 3,421 $ — Real estate: 1-4 single family residential loans 228,450 1,090 2,970 — Construction, land and development 137,760 1,403 307 — Commercial real estate loans (including multifamily) 276,096 5,877 3,758 — Consumer loans and leases 22,528 — 208 — Municipal and other loans 53,632 — — — Total loans $ 847,754 $ 10,701 $ 10,664 $ — Internal risk ratings and other credit metrics are key factors in identifying loans to be individually evaluated for impairment and impact management’s estimates of loss factors used in determining the amount of the allowance for loan and lease losses. The following table shows the Company’s investment in loans disaggregated based on the method of evaluating impairment: Loans - Recorded Investment Allowance for Credit Loss June 30, 2018 Individually Evaluated for Impairment Collectively Evaluated for Impairment Individually Evaluated for Impairment Collectively Evaluated for Impairment (Dollars in thousands) Commercial and industrial loans $ 2,370 $ 147,618 $ 1,461 $ 3,425 Real estate: 1-4 single family residential loans 1,506 237,100 — 318 Construction, land and development 24 152,534 — 195 Commercial real estate loans (including multifamily) 147 305,258 — 233 Consumer loans and leases 100 19,488 50 296 Municipal and other loans — 51,376 — 37 Total loans $ 4,147 $ 913,374 $ 1,511 $ 4,504 Loans - Recorded Investment Allowance for Credit Loss December 31, 2017 Individually Evaluated for Impairment Collectively Evaluated for Impairment Individually Evaluated for Impairment Collectively Evaluated for Impairment (Dollars in thousands) Commercial and industrial loans $ 2,194 $ 132,846 $ 1,226 $ 1,820 Real estate: 1-4 single family residential loans 1,292 231,218 119 783 Construction, land and development — 139,470 — 441 Commercial real estate loans (including multifamily) 447 285,284 — 898 Consumer loans and leases 53 22,683 16 182 Municipal and other loans — 53,632 — 167 Total loans $ 3,986 $ 865,133 $ 1,361 $ 4,291 The following tables set forth certain information regarding the Company’s impaired loans that were evaluated for specific reserves: Impaired Loans - With Allowance Impaired Loans - With no Allowance June 30, 2018 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance (Dollars in thousands) Commercial and industrial loans $ 2,118 $ 2,176 $ 1,461 $ 252 $ 255 Real estate: 1-4 single family residential loans — — — 1,506 1,507 Construction, land and development — — — 24 24 Commercial real estate loans (including multifamily) — — — 147 147 Consumer loans and leases 81 81 50 19 19 Municipal and other loans — — — — — Total loans $ 2,199 $ 2,257 $ 1,511 $ 1,948 $ 1,952 Impaired Loans - With Allowance Impaired Loans - With no Allowance December 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance (Dollars in thousands) Commercial and industrial loans $ 1,811 $ 1,850 $ 1,226 $ 383 $ 386 Real estate: 1-4 single family residential loans 119 119 119 1,173 1,174 Construction, land and development — — — — — Commercial real estate loans (including multifamily) — — — 447 447 Consumer loans and leases 53 52 16 — — Municipal and other loans — — — — — Total loans $ 1,983 $ 2,021 $ 1,361 $ 2,003 $ 2,007 Three Months Ended June 30, 2018 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (Dollars in thousands) Commercial and industrial loans $ 2,435 $ — $ 1,764 $ — Real estate: 1-4 single family residential loans 1,511 — 631 — Construction, land and development 24 — — — Commercial real estate loans (including multifamily) 149 — 1,975 — Consumer loans and leases 101 — — — Municipal and other loans — — — — Total loans $ 4,220 $ — $ 4,370 $ — Six Months Ended June 30, 2018 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (Dollars in thousands) Commercial and industrial loans $ 2,620 $ — $ 1,991 $ — Real estate: 1-4 single family residential loans 1,518 — 635 — Construction, land and development 25 — — — Commercial real estate loans (including multifamily) 151 — 1,976 — Consumer loans and leases 103 — — — Municipal and other loans — — — — Total loans $ 4,417 $ — $ 4,602 $ — Troubled Debt Restructurings: The following table provides a summary of troubled debt restructurings (“TDRs”) based upon delinquency status, all of which are considered impaired: June 30, 2018 December 31, 2017 Number of contracts Recorded Investment Number of contracts Recorded Investment (Dollars in thousands) Performing TDRs: Commercial and industrial loans 2 $ 47 5 $ 270 Real estate: 1-4 single family residential loans 2 149 — — Construction, land and development — — — — Commercial real estate loans (including multifamily) — — — — Consumer loans and leases — — — — Municipal and other loans — — — — Total performing TDRs 4 196 5 270 Nonperforming TDRs 9 583 10 651 Total TDRs 13 $ 779 15 $ 921 Allowance attributable to TDRs $ 339 $ 411 The following table summarizes TDRs and includes newly designated TDRs as well as modifications made to existing TDRs. Modifications may include, but are not limited to, granting a material extension of time, entering into a forbearance agreement, adjusting the interest rate, accepting interest only payments for an extended period of time, a change in the amortization period or a combination of any of these. Post-modification balances represent the recorded investment at the end of Day 2 in which the modification was made: Three Months Ended June 30, 2018 2017 Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Related Allowance Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Related Allowance (Dollars in thousands) Commercial and industrial loans 2 $ 73 $ 73 $ 53 2 $ 44 $ 44 $ 44 Real estate: 1-4 single family residential loans 1 34 34 — — — — — Construction, land and development — — — — — — — — Commercial real estate loans (including multifamily) — — — — — — — — Consumer loans and leases — — — — — — — — Municipal and other loans — — — — — — — — Six Months Ended June 30, 2018 2017 Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Related Allowance Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Related Allowance (Dollars in thousands) Commercial and industrial loans 7 $ 442 $ 442 $ 192 8 $ 427 $ 427 $ 134 Real estate: 1-4 single family residential loans 1 34 34 — — — — — Construction, land and development — — — — — — — — Commercial real estate loans (including multifamily) — — — — — — — — Consumer loans and leases — — — — — — — — Municipal and other loans — — — — — — — — |
Goodwill and Intangibles
Goodwill and Intangibles | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles | NOTE 5. GOODWILL AND INTANGIBLES Goodwill and other intangible assets, which consist of core deposit intangibles, are summarized as follows: June 30, 2018 December 31, 2017 (Dollars in thousands) Goodwill $ 4,485 $ 4,485 Core deposit intangible 7,179 7,179 Total 11,664 11,664 Less: Accumulated amortization (4,044 ) (3,693 ) Total, net $ 7,620 $ 7,971 Amortization expense for core deposit intangibles for the six months ended June 30, 2018 and 2017 totaled $351 thousand each. The estimated amount of amortization expense for core deposit intangible assets to be recognized over the next five fiscal years is as follows: Type of intangibles Remainder of 2018 2019 2020 2021 2022 2023 (Dollars in thousands) Core deposit intangible $ 351 $ 703 $ 703 $ 607 $ 371 $ 239 |
SBA Servicing Asset
SBA Servicing Asset | 6 Months Ended |
Jun. 30, 2018 | |
Transfers And Servicing Of Financial Assets [Abstract] | |
SBA Servicing Asset | NOTE 6. SBA SERVICING ASSET SBA servicing assets are recognized separately when rights are acquired through the sale of the guaranteed portion of SBA loans. These servicing rights are initially measured at fair value at the date of sale and included in the gain on sale. Updated fair values are obtained from an independent third party on a quarterly basis and adjustments are presented in SBA loan servicing fees on the consolidated statements of income. To determine the fair value of SBA servicing rights, the Company uses market prices for comparable servicing contracts, when available, or alternatively, uses a valuation model that calculates the present value of estimated future net servicing income. Loans serviced for others are not included in the accompanying balance sheets. The unpaid principal balances of loans serviced for others were $289.7 million and $275.2 million at June 30, 2018 and December 31, 2017, respectively. The risks inherent in the SBA servicing asset relate primarily to changes in prepayments that result from shifts in interest rates. The following summarizes the activity pertaining to SBA servicing rights, which are in the consolidated balance sheets, for the three months ended June 30, 2018 and 2017: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (Dollars in thousands) Beginning balance $ 3,512 $ 3,288 $ 3,411 $ 3,132 Origination of servicing assets 247 475 579 765 Change in fair value: Due to run-off (245 ) (200 ) (453 ) (384 ) Due to market changes 7 (48 ) (16 ) 2 Ending balance $ 3,521 $ 3,515 $ 3,521 $ 3,515 |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2018 | |
Banking And Thrift [Abstract] | |
Deposits | NOTE 7. DEPOSITS The following table sets forth the Company’s deposits by category: June 30, 2018 December 31, 2017 (Dollars in thousands) Noninterest-bearing demand deposits $ 183,618 $ 176,726 Interest-bearing NOW accounts 7,404 7,318 Savings and money market accounts 212,683 243,173 Time deposits 440,978 408,151 Total deposits $ 844,683 $ 835,368 Time deposits $100,000 and greater $ 345,067 $ 314,102 Time deposits $250,000 and greater 87,566 82,816 Related party deposits (executive officers and directors) 12,776 13,914 The aggregate amount of overdraft demand deposits reclassified to loans was $17 thousand and $27 thousand at June 30, 2018 and December 31, 2017, respectively. The aggregate amount of maturities for time deposits for each of the five years following the latest balance sheet date totaled $273.0 million, $125.0 million, $22.3 million, $8.9 million and $11.8 million, respectively. |
Stock-Based Compensation and Ot
Stock-Based Compensation and Other Benefit Plans | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation and Other Benefit Plans | NOTE 8. STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS Spirit of Texas Bancshares, Inc. 2008 Stock Plan (the “2008 Stock Plan”) Option activity for the period indicated is summarized as follows: 2008 Stock Plan Options Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) Weighted Average Remaining Contractual Life (Years) Outstanding at January 1, 2018 1,415,350 $ 12.59 Granted — Exercised (191,428 ) $ 10.63 $ 1,909 Forfeited (1) (18,000 ) $ 13.30 $ 131 Expired — Outstanding at June 30, 2018 1,205,922 $ 12.89 $ 9,298 5.17 Exercisable at June 30, 2018 962,882 $ 12.54 $ 7,761 4.66 Vested at June 30, 2018 962,882 $ 12.54 $ 7,761 4.66 (1) Forfeitures are accounted for in the period they occur. The total unrecognized compensation cost of $902 thousand related to the 2008 Stock Plan for the share awards outstanding at June 30, 2018 will be recognized over a weighted average remaining period of 2.15 years. Spirit of Texas Bancshares, Inc. 2017 Stock Plan (the “2017 Stock Plan”) Option activity for the period indicated is summarized as follows: 2017 Stock Plan Options Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) Weighted Average Remaining Contractual Life (Years) Outstanding at January 1, 2018 127,927 $ 15.00 Granted 75,116 20.63 $ — Exercised — Forfeited (1) — Expired — Outstanding at June 30, 2018 203,043 $ 17.08 $ 715 9.10 Exercisable at June 30, 2018 76,770 $ 15.00 $ 430 8.66 Vested at June 30, 2018 76,770 $ 15.00 $ 430 8.66 (1) Forfeitures are accounted for in the period they occur. The fair values of the stock options granted for the six months ended June 30, 2018 were determined utilizing the Black-Scholes pricing model methodology. A summary of assumptions used to calculate the fair values of the 2017 Stock Plan awards is presented below: 2017 Stock Plan Six Months Ended June 30, 2018 Expected volatility 23 % Expected dividend yield 0.0 % Expected term (years) 7.5 Risk-free interest rate 2.36 - 2.81% Weighted average grant date fair value $ 6.75 The expected volatility is based on the volatility of comparable peer banks. The expected term represents the period of time that the 2017 Stock Plan awards are expected to be outstanding from the date of grant. The risk-free interest rate is based on the U.S. Treasury yields for the expected term of the instrument. The total unrecognized compensation cost of $663 thousand related to the 2017 Stock Plan for the share awards outstanding at June 30, 2018 will be recognized over a weighted average remaining period of 4.51 years. Warrants Warrant activity for the period indicated is summarized as follows: Spirit of Texas Bancshares, Inc. 2008 Warrants Warrants Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) Weighted Average Remaining Contractual Life (Years) Outstanding at January 1, 2018 105,000 $ 10.00 Granted — Exercised (15,000 ) $ 10.00 $ 159 Forfeited (1) — Expired — Outstanding at June 30, 2018 90,000 $ 10.00 $ 954 0.38 Exercisable at June 30, 2018 90,000 $ 10.00 $ 954 0.38 Vested at June 30, 2018 90,000 $ 10.00 $ 954 0.38 (1) Forfeitures are accounted for in the period they occur. There is no remaining expense to be recognized on the Spirit of Texas Bancshares, Inc. 2008 Warrants. There was no activity during the six months ended June 30, 2018 on the Bank4Texas or Oasis Warrants. |
Basic and Diluted Earnings Per
Basic and Diluted Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Common Share | NOTE 9. BASIC AND DILUTED EARNINGS PER COMMON SHARE The following table presents the computation of basic and diluted EPS: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (Dollars in thousands, except per share data) Net income as reported $ 2,681 $ 2,009 $ 4,694 $ 2,228 Less: Participated securities share of undistributed earnings — — — 21 Net income available to common stockholders $ 2,681 $ 2,009 $ 4,694 $ 2,207 Weighted average number of common shares - basic 8,851,446 7,273,351 8,104,370 7,187,125 Effect of dilutive securities: Employee stock-based compensation awards and warrants 454,583 295,570 341,590 295,570 Weighted average number of common shares - diluted 9,306,029 7,568,921 8,445,960 7,482,695 Basic earnings per common share $ 0.30 $ 0.28 $ 0.58 $ 0.31 Diluted earnings per common share $ 0.29 $ 0.27 $ 0.56 $ 0.29 Anti-dilutive warrants and stock options 70,266 273,350 70,266 273,350 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 10. INCOME TAXES The Company uses an estimated annual effective tax rate method in computing its interim tax provision. This effective tax rate is based on forecasted annual pre-tax income, permanent tax differences and statutory tax rates. The effective tax rates for the three months ended June 30, 2018 and 2017 were 20.4% and 33.1%, respectively. The decrease in the effective tax rate for the three months ended June 30, 2018 was primarily due to the enactment of the 2017 Tax Cuts and Jobs Act (the “Tax Reform”) which reduced the corporate tax rate from 34.0% to 21.0%. The effective tax rates for the six months ended June 30, 2018 and 2017 were 20.1% and 34.3%, respectively. The decrease in the effective tax rate for the six months ended June 30, 2018 was primarily due to the enactment of the Tax Reform which reduced the corporate tax rate from 34.0% to 21.0%. The Company recorded an uncertain tax position at December 31, 2017 arising from a deduction taken on the 2016 federal return related to a request for change in accounting method. The total amount of the recorded uncertain tax position at December 31, 2017 was $903 thousand and is included in other liabilities. During the second quarter of 2018, the Company filed an amended return and the uncertain tax position was settled against the balance left on account with the IRS. The Company’s policy is to classify interest and penalties associated with income taxes within other expenses. The Company did not record interest and penalties associated with income taxes for the three or six months ended June 30, 2018 or 2017. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 11. COMMITMENTS AND CONTINGENCIES The Company issues off-balance sheet financial instruments in connection with its lending activities and to meet the financing needs of its customers. These financial instruments include commitments to fund loans and lines of credit as well as commercial and standby letters of credit. These commitments expose the Company to varying degrees of credit and market risk which are essentially the same as those involved in extending loans to customers. The Company follows the same credit policies in making commitments as it does for instruments recorded on the Company’s consolidated balance sheet. Collateral is obtained based on management’s assessment of the customer’s credit risk. The Company’s exposure to credit loss is represented by the contractual amount of these commitments. As of June 30, 2018 and December 31, 2017, the Company’s reserve for unfunded commitments totaled $40 thousand. Fees collected on off-balance sheet financial instruments represent the fair value of those commitments and are deferred and amortized over their term. Financial Instruments Commitments Unfunded commitments are as follows: June 30, 2018 December 31, 2017 (Dollars in thousands) Unfunded loan commitments $ 130,286 $ 134,536 Commercial and standby letters of credit 85 91 Total $ 130,371 $ 134,627 Unfunded loan commitments: 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. Since 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 it is deemed necessary by the Company upon extension of credit, is based upon management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, and income-producing commercial properties. Commercial and standby letters of credit: Letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Letters of credit are primarily issued to support trade transactions or guarantee arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company generally holds collateral supporting those commitments if deemed necessary. Other Commitments and Contingencies Legal Proceedings The Company, from time to time, is involved as plaintiff or defendant in various legal actions arising in the normal course of business. While the ultimate outcome of any such proceedings cannot be predicted with certainty, it is the opinion of management, based upon advice of legal counsel, that no proceedings exist, either individually or in the aggregate, which, if determined adversely to the Company, would have a material effect on the Company’s consolidated balance sheet, results of operations or cash flows. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 12. FAIR VALUE MEASUREMENTS When determining the fair value measurements for assets and liabilities and the related fair value hierarchy, the Company considers the principal or most advantageous market in which it would transact and the assumptions that market participants would use when pricing the asset or liability. When possible, the Company looks to active and observable markets to price identical assets or liabilities. When identical assets and liabilities are not traded in active markets, the Company looks to market observable data for similar assets and liabilities. It is the Company’s policy to maximize the use of observable inputs, minimize the use of unobservable inputs and use unobservable inputs to measure fair value to the extent that observable inputs are not available. The need to use unobservable inputs generally results from the lack of market liquidity, resulting in diminished observability of both actual trades and assumptions that would otherwise be available to value these instruments, or the value of the underlying collateral is not market observable. Although third party price indications may be available for an asset or liability, limited trading activity would make it difficult to support the observability of these quotations. Financial Instruments Carried at Fair Value on a Recurring Basis The following is a description of the valuation methodologies used for financial instruments measured at fair value on a recurring basis, as well as the general classification of each instrument under the valuation hierarchy. Investment Securities—Investment securities available for sale are carried at fair value on a recurring basis. When available, fair value is based on quoted prices for the identical security in an active market and as such, would be classified as Level 1. If quoted market prices are not available, fair values are estimated using quoted prices of securities with similar characteristics, discounted cash flows or matrix pricing models. Investment securities available for sale for which Level 1 valuations are not available are classified as Level 2, and include U.S. Government agencies and sponsored enterprises obligations and agency mortgage-backed securities; state and municipal obligations; asset-backed securities; and corporate debt and other securities. Pricing of these securities is generally spread driven. Observable inputs that may impact the valuation of these securities include benchmark yield curves, credit spreads, reported trades, dealer quotes, bids, issuer spreads, current rating, historical constant prepayment rates, historical voluntary prepayment rates, structural and waterfall features of individual securities, published collateral data, and for certain securities, historical constant default rates and default severities. SBA Servicing Asset—The SBA Servicing Asset is carried at fair value on a recurring basis. To determine the fair value of SBA servicing rights, The Company uses market prices for comparable servicing contracts, when available, or alternatively, uses a valuation model that calculates the present value of estimated future net servicing income. In using this valuation method, the Company incorporates assumptions that market participants would use in estimating future net servicing income, which includes estimates of the cost to service, the discount rate, custodial earnings rate, an inflation rate, ancillary income, prepayment speeds, default rates, late fees and losses. The SBA Servicing Asset is classified as Level 3. The following table presents the assets and liabilities measured at fair value on a recurring basis: June 30, 2018 Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: U.S. Government agencies $ — $ 1,904 $ — $ 1,904 Residential mortgage-backed securities — 27,108 — 27,108 Corporate bonds and other debt securities — 5,507 — 5,507 SBA servicing rights — — 3,521 3,521 Total $ — $ 34,519 $ 3,521 $ 38,040 December 31, 2017 Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: U.S. Government agencies $ — $ 1,949 $ — $ 1,949 Residential mortgage-backed securities — 29,629 — 29,629 Corporate bonds and other debt securities — 5,665 — 5,665 SBA servicing rights — — 3,411 3,411 Total $ — $ 37,243 $ 3,411 $ 40,654 There were no transfers of financial assets between levels of the fair value hierarchy during the three or six months ended June 30, 2018. Financial Instruments Measured at Fair Value on a Non-Recurring Basis The following is a description of the methodologies used to estimate the fair values of assets and liabilities measured at fair value on a non-recurring basis, and the level within the fair value hierarchy in which those measurements are typically classified. Impaired loans and other real estate owned (“OREO”)—The carrying amount of collateral dependent impaired loans is typically based on the fair value of the underlying collateral, which may be real estate or other business assets, less estimated costs to sell. The carrying value of OREO is initially measured based on the fair value, less estimated cost to sell, of the real estate acquired in foreclosure and subsequently adjusted to the lower of cost or estimated fair value, less estimated cost to sell. Fair values of real estate collateral are typically based on real estate appraisals which utilize market and income valuation techniques incorporating both observable and unobservable inputs. When current appraisals are not available, the Company may use brokers’ price opinions, home price indices, or other available information about changes in real estate market conditions to adjust the latest appraised value available. These adjustments to appraised values may be subjective and involve significant management judgment. The fair value of collateral consisting of other business assets is generally based on appraisals that use market approaches to valuation, incorporating primarily unobservable inputs. Fair value measurements related to collateral dependent impaired loans and OREO are classified within Level 3 of the fair value hierarchy. The following tables provide information about certain assets measured at fair value on a non-recurring basis: Estimated Fair Value June 30, 2018 December 31, 2017 (Dollars in thousands) Assets (classified in Level 3): Impaired loans $ 2,820 $ 2,553 Other real estate and repossessed assets 289 21 Impairment charges resulting from the non-recurring changes in fair value of underlying collateral of impaired loans are included in the provision for loan losses in the consolidated statement of income. Impairment charges resulting from the non-recurring changes in fair value of OREO are included in other real estate and acquired assets resolution expenses in the consolidated statement of income. The following tables show significant unobservable inputs used in the recurring and non-recurring fair value measurements of Level 3 assets: Level 3 Asset Fair Value Valuation Technique Unobservable Inputs Range/Weighted Average June 30, 2018 Non-recurring: Impaired loans $ 2,820 Third party appraisals Collateral discounts 0.0% - 100.0% (33.0%) Other real estate owned 289 Third party appraisals Collateral discounts and estimated cost to sell 10.0 % SBA servicing assets 3,521 Discounted cash flows Conditional prepayment rate 6.8 % Discount rate 13.9 % December 31, 2017 Non-recurring: Impaired loans $ 2,553 Third party appraisals Collateral discounts 0.0% - 100.0% (11.6%) Other real estate owned 21 Third party appraisals Collateral discounts and estimated cost to sell 10.0 % SBA servicing assets 3,411 Discounted cash flows Conditional prepayment rate 6.7 % Discount rate 14.1 % The carrying amounts and estimated fair values, as well as the level within the fair value hierarchy, of the Company’s financial instruments are as follows: June 30, 2018 Carrying Value Fair Value Level 1 Level 2 Level 3 (Dollars in thousands) Financial Assets: Cash and cash equivalents $ 52,986 $ 52,986 $ 52,986 $ — $ — Time deposits in other banks 245 245 245 — — Available for sale securities 34,519 34,519 — 34,519 — FHLB and other bank stock 4,830 4,830 — 4,830 — Loans, net 911,506 901,798 — — 901,798 Loans held for sale 7,715 8,360 — 8,360 — Accrued interest receivable 3,195 3,195 — 3,195 — Bank-owned life insurance 482 482 — 482 — SBA servicing rights 3,521 3,521 — — 3,521 Financial Liabilities: Deposits $ 844,683 $ 843,940 $ — $ 843,940 $ — Accrued interest payable 431 431 — 431 — Short-term borrowings 15,000 15,000 — 15,000 — Long-term borrowings 66,191 64,512 — 64,512 — December 31, 2017 Carrying Value Fair Value Level 1 Level 2 Level 3 (Dollars in thousands) Financial Assets: Cash and cash equivalents $ 57,949 $ 57,949 $ 57,949 $ — $ — Time deposits in other banks 245 245 245 — — Available for sale securities 37,243 37,243 — 37,243 — FHLB and other bank stock 4,812 4,812 — 4,812 — Loans, net 863,467 870,749 — — 870,749 Loans held for sale 3,814 4,188 — 4,188 — Accrued interest receivable 3,466 3,466 — 3,466 — Bank-owned life insurance 479 479 — 479 — SBA servicing rights 3,411 3,411 — — 3,411 Financial Liabilities: Deposits $ 835,368 $ 840,645 $ — $ 840,645 $ — Accrued interest payable 407 407 — 407 — Short-term borrowings 15,000 15,000 — 15,000 — Long-term borrowings 76,411 67,310 — 67,310 — Certain financial instruments are carried at amounts that approximate fair value due to their short-term nature and generally negligible credit risk. Financial instruments for which fair value approximates the carrying amount at June 30, 2018 and December 31, 2017, include cash and cash equivalents, time deposits in other banks and accrued interest receivable and payable. The following methods and assumptions were used to estimate the fair value of each class of financial instruments. FHLB and Other Bank Stock: FHLB and other bank stock can be liquidated only by redemption by the issuer, as there is no market for these securities. These securities are carried at par, which has historically represented the redemption price and is therefore considered to approximate fair value. Loans: Fair values for loans are based on a discounted cash flow methodology that considers various factors, including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan, whether or not the loan was amortizing and current discount rates. A basis point adjustment for the liquidity premium curve was added to the discounted cash flow methodology to obtain the estimated exit price of the portfolio. Loans are grouped together according to similar characteristics and are treated in the aggregate when applying various valuation techniques. The discount rates used for loans are based on current market rates for new originations of comparable credit risk and include adjustments for liquidity concerns. The allowance for loan and lease losses is considered a reasonable estimate of the required adjustment to fair value to reflect the impact of credit risk. This estimate is intended to represent an exit value as defined in ASC 820. Loans Held for Sale: SBA loans held for sale are carried at the lower of cost or fair value. The fair values of SBA loans held for sale is determined, when possible, using quoted secondary-market prices and are classified within Level 2 of the fair value hierarchy. If no such quoted prices exist, the fair value of a loan is determined using quoted prices for a similar loan or loans, adjusted for the specific attributes of that loan. Bank-owned Life Insurance: The Company holds life insurance policies on certain officers. The carrying value of these policies approximates fair value as it is based on the cash surrender value adjusted for other charges or amounts due that are probable at settlement. Deposits: The fair value of demand deposits, savings accounts and money market deposits is the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposit is estimated using discounted cash flow analysis and using the rates currently offered for deposits of similar remaining maturities. Short-term and Long-term Borrowings: The fair value of advances from the FHLB and other borrowings are estimated by discounting the future cash flows using the current rate at which similar borrowings with similar remaining maturities could be obtained. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 13. SUBSEQUENT EVENTS On July 19, 2018, the Company and Comanche National Corporation (“Comanche”), entered into an Agreement and Plan of Reorganization (the “Reorganization Agreement”) providing for the acquisition by the Company of Comanche pursuant to the merger of Comanche with and into the Company, with the Company surviving the merger. Pursuant to the terms and subject to the conditions of the Reorganization Agreement, which has been approved by the Board of Directors of each of the Company and Comanche, the transaction provides for the payment to Comanche shareholders of an estimated $12.2 million in cash and 2,142,857 shares of the Company’s common stock, subject to certain adjustments. The transaction is expected to close in the fourth quarter of 2018, subject to the satisfaction of customary closing conditions, including the receipt of regulatory approvals and the approvals of the Company’s and Comanche’s respective shareholders. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations Spirit of Texas Bancshares, Inc. (the “Holding Company” or “Company”) is a bank holding company headquartered in Conroe, Texas that provides, through its bank subsidiary, a variety of financial services to individuals and corporate customers in Texas, which are primarily agricultural, light industrial and commercial areas. On March 16, 2017, the Company filed a Second Amended and Restated Certificate of Formation with the Texas Secretary of State to affect a reverse stock split of its outstanding common stock which became effective on March 16, 2017. As a result of the reverse stock split, every two shares of the Company’s issued and outstanding common stock were consolidated into one issued and outstanding share of common stock. The computations of all share and per share amounts in this Quarterly Report on Form 10-Q (this “Form 10-Q”) have been adjusted retroactively to reflect the reverse stock split. The Company consummated the underwritten initial public offering of its common stock in May 2018. In connection with the initial public offering, the Company issued and sold 2,300,000 shares of its common stock, including 300,000 shares of common stock sold pursuant to the underwriters’ full exercise of their option to purchase additional shares, at an offering price of $21.00 per share, for aggregate gross proceeds of $48.3 million before deducting underwriting discounts and offering expenses, and aggregate net proceeds of $42.2 million after deducting underwriting discounts and offering expenses. |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of the Holding Company and the accounts of its wholly-owned subsidiary, Spirit of Texas Bank SSB (the “Bank”). All significant intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. Operating results for the period ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 and should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2017 included in our prospectus filed with the Securities and Exchange Commission (“SEC”) pursuant to Rule 424(b) of the Securities Act of 1933, as amended, on May 4, 2018, related to our initial public offering In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for the fair presentation of these consolidated financial statements have been included. The preparation of financial statements in conformity with these accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and income and expense during the reporting periods and the related disclosures. Although management’s estimates and assumptions are based on current expectations, estimates, forecasts and projections about future performance of the Company, such estimates and assumptions are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult for the Company to assess. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period. |
Accounting Policies Recently Adopted and Pending Accounting Pronouncements | Accounting Policies Recently Adopted and Pending Accounting Pronouncements Accounting Standards Update (ASU) 2018-09, “Codification Improvements.” Issued in July 2018, ASU No. 2018-09 makes changes to a variety of topics to clarify, correct errors in, or make minor improvements to the Accounting Standards Codification. The majority of the amendments in ASU 2018-09 will be effective in annual periods beginning after December 15, 2018. Management is currently evaluating the effects the adoption of ASU 2018-09 will have on the consolidated financial statements, results of operations and cash flows. ASU 2018-07, “Compensation-Stock Compensation.” Issued in June 2018, ASU 2018-07 expands the scope of ASC 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The amendments also clarify that ASC 718 does not apply to share-based payments used to provide either financing to the issuer or awards granted in conjunction with selling goods or services to customers under a contract subject to ASC 606, Revenue from Contracts with Customers. The amendments of ASU 2018-07 are effective for public entities for interim and annual periods beginning after December 15, 2018 and for other entities for periods beginning after December 15, 2019. Management will adopt ASU 2018-07 using the public company effective date as early adoption is permitted and is currently evaluating the impact the ASU will have on the consolidated financial statements. ASU 2017-08, “Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.” Issued in March 2017, ASU 2017-08 amends the amortization period for certain purchased callable debt securities held at a premium. In particular, the amendments in ASU 2017-08 require the premium to be amortized to the earliest call date. The amendments do not, however, require an accounting change for securities held at a discount; instead, the discount continues to be amortized to maturity. Notably, the amendments in this ASU more closely align the amortization period of premiums and discounts to expectations incorporated in market pricing on the underlying securities. Securities within the scope of ASU 2017-08 are purchased debt securities that have explicit, non-contingent call features that are callable at fixed prices and on preset dates. The amendments of ASU 2017-08 become effective for public entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018 and for other entities for periods beginning after December 15, 2019. Management will adopt this ASU using the public company effective date as early adoption is permitted and is currently evaluating the impact this ASU will have on the consolidated financial statements; however, the adoption of ASU 2017-08 is not expected to have a material impact on the Company’s consolidated financial statements. ASU 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” Issued in January 2017, ASU 2017-04 simplifies the manner in which an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit's goodwill with the carrying amount of that goodwill. In computing the implied fair value of goodwill under Step 2, an entity, prior to the amendments in ASU 2017-04, had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities, including unrecognized assets and liabilities, in accordance with the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. However, under the amendments in ASU 2017-04, an entity should (1) perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and (2) recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, with the understanding that the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, ASU 2017-04 removes the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails such qualitative test, to perform Step 2 of the goodwill impairment test. ASU 2017-04 is effective prospectively for public entities for annual, or any interim, goodwill impairment tests in fiscal years beginning after December 15, 2019 and for all other entities for impairment tests in fiscal years beginning after December 15, 2021. Management will adopt this ASU using the public company effective date as early adoption is permitted and will continue to evaluate the impact this ASU will have on the consolidated financial statements through its effective date; however, the adoption of ASU 2017-04 is not expected to have a material impact on the Company ’s consolidated financial statements. ASU 2017-01, “Business Combinations (Topic 805) - Clarifying the Definition of a Business.” Issued in January 2017, ASU 2017-01 clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses, which determines whether goodwill should be recorded or not. The amendments in ASU No. 2017-01 provide a screen to determine when a set of assets and activities (collectively, a “set”) is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated. If, however, the screen is not met, then the amendments in ASU 2017-01 require that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and remove the evaluation of whether a market participant could replace missing elements. The revised definition will result in more transactions being recorded as asset acquisitions or dispositions as opposed to business acquisitions or dispositions. The amendments of ASU 2017-01 are effective for public business entities for fiscal years beginning after December 15, 2017, and for private companies for fiscal years beginning after December 15, 2018. Management has elected to adopt this ASU using the private company effective date and is currently evaluating the impact this ASU will have on the consolidated financial statements; however, the adoption of ASU 2017-01 is not expected to have a material impact on the Company ’s consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory." ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” Issued in June 2016, ASU 2016-13 will add FASB ASC Topic 326, “Financial Instruments-Credit Losses” and finalizes amendments to FASB ASC Subtopic 825-15, “Financial Instruments-Credit Losses.” The amendments of ASU 2016-13 are intended to provide financial statement users with more decision-useful information related to expected credit losses on financial instruments and other commitments to extend credit by replacing the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to determine credit loss estimates. The amendments of ASU 2016-13 eliminate the probable initial recognition threshold and, in turn, reflect an entity’s current estimate of all expected credit losses. ASU 2016-13 does not specify the method for measuring expected credit losses, and an entity is allowed to apply methods that reasonably reflect its expectations of the credit loss estimate. Additionally, the amendments of ASU 2016-13 require that credit losses on available for sale debt securities be presented as an allowance rather than as a write-down. The amendments of ASU 2016-13 are effective for public entities for interim and annual periods beginning after December 15, 2019 and for all other entities for periods beginning after December 15, 2020. Earlier application is permitted for interim and annual periods beginning after December 15, 2018. Management has elected to adopt this ASU using the private company effective date and is currently evaluating the impact this ASU will have on the consolidated financial statements and that evaluation will depend on economic conditions and the composition of the Company’s loan and lease portfolio at the time of adoption. ASU 2016-02, “Leases (Topic 842).” Issued in February 2016, ASU 2016-02 was issued by the FASB to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and by disclosing key information about leasing arrangements. ASU 2016-02 will, among other things, require lessees to recognize a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 does not significantly change lease accounting requirements applicable to lessors; however, the ASU contains some targeted improvements that are intended to align, where necessary, lessor accounting with the lessee accounting model and with the updated revenue recognition guidance issued in 2014. The amendments of ASU 2016-02 are effective for public entities for interim and annual periods beginning after December 15, 2018 and for other entities for periods beginning after December 15, 2019. The adoption of this ASU will result in an increase to the Consolidated Balance Sheets for right-of-use assets and associated lease liabilities for operating leases in which the Company is the lessee. Additionally, i n July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases and ASU No. 2018-11, Leases, Targeted Improvements. The amendments in these updates provide additional clarification and implementation guidance on certain aspects of ASU 2016-02 and have the same effective and transition requirements as ASU 2016-02. Specifically, ASU 2018-11 creates an additional transition method option allowing entities to record a cumulative effect adjustment to opening retained earnings in the year of adoption. Management will adopt these ASU’s using the public company effective date as early adoption is permitted and is currently evaluating the impact to the consolidated financial statements, specifically, we are in the process of reviewing service contracts to determine if right-of-use assets exist. ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” Issued in May 2014, ASU 2014-09 will add FASB ASC Topic 606, “Revenue from Contracts with Customers,” and will supersede revenue recognition requirements in FASB ASC Topic 605, “Revenue Recognition,” as well as certain cost guidance in FASB ASC Topic 605-35, “Revenue Recognition – Construction-Type and Production-Type Contracts.” ASU 2014-09 provides a framework for revenue recognition that replaces the existing industry and transaction specific requirements under the existing standards. ASU 2014-09 requires an entity to apply a five-step model to determine when to recognize revenue and at what amount. The model specifies that revenue should be recognized when (or as) an entity transfers control of goods or services to a customer at the amount in which the entity expects to be entitled. Depending on whether certain criteria are met, revenue should be recognized either over time, in a manner that depicts the entity’s performance, or at a point in time, when control of the goods or services are transferred to the customer. ASU 2014-09 provides that an entity should apply the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the entity satisfies a performance obligation. In addition, the existing requirements for the recognition of a gain or loss on the transfer of non-financial assets that are not in a contract with a customer are amended to be consistent with the guidance on recognition and measurement in ASU 2014-09. The amendments of ASU 2014-09 may be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application. If the transition method of application is elected, the entity should also provide the additional disclosures in reporting periods that include the date of initial application of (1) the amount by which each financial statement line item is affected in the current reporting period, as compared to the guidance that was in effect before the change, and (2) an explanation of the reasons for significant changes. issued in August 2015, defers the effective date of ASU 2014-09 by one year. ASU 2015-14 provides that the amendments of ASU 2014-09 become effective for public business entities for fiscal years beginning after December 15, 2017, and for private companies for fiscal years beginning after December 15, 2018. All subsequently issued ASU’s which provide additional guidance and clarifications to various aspects of FASB ASC Topic 606 will become effective when the amendments of ASU 2014-09 become effective. These subsequently issued ASU’s include ASU 2016-08 ASU 2016-10 and ASU 2016-12 These amendments clarify the main provisions of ASU-2014-09 with respect to specific revenue types based upon implementation questions submitted. Specifically, revenue in which a third party satisfies a portion of the performance obligations, revenue from licensing activities, and the assessment of collectability, treatment of sales taxes, non-cash consideration, and contract modifications at transition. Management has elected to adopt this ASU using the private company effective date and has completed an analysis to determine which revenue streams are within the scope of ASU 2014-09 and the related clarifying ASU’s and has determined that interest income and revenue generated from transfers and servicing of financial instruments, specifically, gain on sale of loans and servicing fees are out of scope. Management will adopt this ASU using the modified retrospective method of application and is continuing to evaluate the impact that ASU 2014-09 and the related clarifying ASU’s will have on in scope revenue streams, specifically, service charges and fees, mortgage referral fees, and gains or losses on other real estate owned. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Fair Values of Securities Available for Sale | The amortized cost, gross unrealized gains and losses and approximate fair values of securities available for sale are as follows: Amortized Unrealized Fair June 30, 2018 Cost Gains Losses Value (Dollars in thousands) Available for sale: U.S. Government agencies $ 2,013 $ — $ 109 $ 1,904 Residential mortgage-backed securities 28,180 — 1,072 27,108 Corporate bonds and other debt securities 5,689 — 182 5,507 Total available for sale $ 35,882 $ — $ 1,363 $ 34,519 Amortized Unrealized Fair December 31, 2017 Cost Gains Losses Value (Dollars in thousands) Available for sale: — U.S. Government agencies $ 2,010 $ — $ 61 $ 1,949 Residential mortgage-backed securities 30,156 — 527 29,629 Corporate bonds and other debt securities 5,711 — 46 5,665 Total available for sale $ 37,877 $ — $ 634 $ 37,243 |
Schedule of Securities Available for Sale by Contractual Maturity | The amortized cost and estimated fair value of securities available for sale, by contractual maturity, are as follows: Amortized Fair June 30, 2018 Cost Value (Dollars in thousands) Available for sale: Due in one year or less $ — $ — Due after one year through five years 4,125 4,003 Due after five years through ten years 3,100 2,957 Due after ten years 477 451 Residential mortgage-backed securities 28,180 27,108 Total available for sale $ 35,882 $ 34,519 |
Schedule of Investment Securities Available for Sale and Aggregated by Investment Category and Length of Time Individual Securities in Continuous Unrealized Loss Position | The following tables present the estimated fair values and gross unrealized losses on investment securities available for sale, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position as of the periods presented: Less than 12 Months 12 Months or More Total June 30, 2018 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss (Dollars in thousands) Available for sale: U.S. Government agencies $ 451 $ 26 $ 1,453 $ 83 $ 1,904 $ 109 Residential mortgage-backed securities 4,604 184 22,503 888 27,107 1,072 Corporate bonds and other debt securities 3,571 119 1,936 63 5,507 182 Total available for sale $ 8,626 $ 329 $ 25,892 $ 1,034 $ 34,518 $ 1,363 Less than 12 Months 12 Months or More Total December 31, 2017 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss (Dollars in thousands) Available for sale: U.S. Government agencies $ 1,949 $ 61 $ — $ — $ 1,949 $ 61 Residential mortgage-backed securities 29,627 527 — — 29,627 527 Corporate bonds and other debt securities 5,665 46 — — 5,665 46 Total available for sale $ 37,241 $ 634 $ — $ — $ 37,241 $ 634 |
Loans, Net (Tables)
Loans, Net (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Summary of Loans | Loans consisted of the following at June 30, 2018 and December 31, 2017: June 30, 2018 December 31, 2017 (Dollars in thousands) Commercial and industrial loans (1) $ 149,988 $ 135,040 Real estate: 1-4 single family residential loans 238,606 232,510 Construction, land and development 152,558 139,470 Commercial real estate loans (including multifamily) 305,405 285,731 Consumer loans and leases 19,588 22,736 Municipal and other loans 51,376 53,632 Total loans held in portfolio (2) $ 917,521 $ 869,119 Allowance for loan losses (6,015 ) (5,652 ) Loans held in portfolio, net $ 911,506 $ 863,467 (1) Balance includes $72.4 million and $67.1 million of the unguaranteed portion of SBA loans as of June 30, 2018 and December 31, 2017, respectively. (2) Balance includes $(3.4) million and $(3.4) million of deferred fees, cost, premium and discount as of June 30, 2018 and December 31, 2017, respectively. |
Summary of Loans to Related Parties and Principal Owners | In the ordinary course of business, the Company makes loans to executive officers and directors. Loans to these related parties, including companies in which they are principal owners, are as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (Dollars in thousands) Principal outstanding, beginning of year $ 442 $ 541 $ 463 $ 9,036 Additions (reductions) of affiliations — (717 ) — (8,425 ) New loans made in current year — — — — Repayments (1) (21 ) 692 (42 ) (95 ) Principal outstanding, end of year $ 421 $ 516 $ 421 $ 516 (1) During the three months ended June 30, 2017 there was a reclassification of repayments to reductions of affiliations. |
Allowance for Loan and Lease 25
Allowance for Loan and Lease Losses (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Allowance for Loan and Lease Losses | The following tables present information related to allowance for loan and lease losses for the periods presented: Allowance Rollforward Three Months Ended June 30, 2018 Beginning Balance Charge-offs Recoveries Provision Ending Balance (Dollars in thousands) Commercial and industrial loans $ 2,906 $ (321 ) $ 3 $ 2,298 $ 4,886 Real estate: 1-4 single family residential loans 887 (5 ) — (564 ) 318 Construction, land and development loans 540 — — (345 ) 195 Commercial real estate loans (including multifamily) 1,032 — — (799 ) 233 Consumer loans and leases 175 (24 ) — 195 346 Municipal and other loans 187 — — (150 ) 37 Ending allowance balance $ 5,727 $ (350 ) $ 3 $ 635 $ 6,015 Allowance Rollforward Three Months Ended June 30, 2017 Beginning Balance Charge-offs Recoveries Provision Ending Balance (Dollars in thousands) Commercial and industrial loans $ 2,451 $ (280 ) $ 2 $ 409 $ 2,582 Real estate: 1-4 single family residential loans 676 — — 56 732 Construction, land and development loans 380 — — 32 412 Commercial real estate loans (including multifamily) 697 — — 103 800 Consumer loans and leases 194 (31 ) — 41 204 Municipal and other loans 152 — — 9 161 Ending allowance balance $ 4,550 $ (311 ) $ 2 $ 650 $ 4,891 Allowance Rollforward Six Months Ended June 30, 2018 Beginning Balance Charge-offs Recoveries Provision Ending Balance (Dollars in thousands) Commercial and industrial loans $ 3,046 $ (645 ) $ 69 $ 2,416 $ 4,886 Real estate: 1-4 single family residential loans 902 (5 ) — (579 ) 318 Construction, land and development loans 441 — — (246 ) 195 Commercial real estate loans (including multifamily) 898 — — (665 ) 233 Consumer loans and leases 198 (30 ) — 178 346 Municipal and other loans 167 — — (130 ) 37 Ending allowance balance $ 5,652 $ (680 ) $ 69 $ 974 $ 6,015 Allowance Rollforward Six Months Ended June 30, 2017 Beginning Balance Charge-offs Recoveries Provision Ending Balance (Dollars in thousands) Commercial and industrial loans $ 2,347 $ (540 ) $ 2 $ 773 $ 2,582 Real estate: 1-4 single family residential loans 647 — — 85 732 Construction, land and development loans 364 — — 48 412 Commercial real estate loans (including multifamily) 667 (15 ) — 148 800 Consumer loans and leases 186 (113 ) — 131 204 Municipal and other loans 146 — — 15 161 Ending allowance balance $ 4,357 $ (668 ) $ 2 $ 1,200 $ 4,891 |
Summary of Aging Analysis of Recorded Investment for Delinquent Loans by Portfolio and Segment | The following tables present an aging analysis of the recorded investment for delinquent loans by portfolio and segment: Accruing June 30, 2018 Current 30 to 59 Days Past Due 60 to 89 Days Past Due 90 Days or More Past Due Non- Accrual Total (Dollars in thousands) Commercial and industrial loans $ 147,256 $ 321 $ - $ 1 $ 2,410 $ 149,988 Real estate: 1-4 single family residential loans 236,481 423 345 — 1,357 238,606 Construction, land and development 152,523 11 — — 24 152,558 Commercial real estate loans (including multifamily) 305,258 — — — 147 305,405 Consumer loans and leases 19,363 125 — — 100 19,588 Municipal and other loans 51,376 — — — — 51,376 Total loans $ 912,257 $ 880 $ 345 $ 1 $ 4,038 $ 917,521 Accruing December 31, 2017 Current 30 to 59 Days Past Due 60 to 89 Days Past Due 90 Days or More Past Due Non- Accrual Total (Dollars in thousands) Commercial and industrial loans $ 132,775 $ 302 $ 3 $ 33 $ 1,927 $ 135,040 Real estate: 1-4 single family residential loans 230,738 637 — — 1,135 232,510 Construction, land and development 139,470 — — — — 139,470 Commercial real estate loans (including multifamily) 284,869 415 — — 447 285,731 Consumer loans and leases 22,538 98 47 — 53 22,736 Municipal and other loans 53,632 — — — — 53,632 Total loans $ 864,022 $ 1,452 $ 50 $ 33 $ 3,562 $ 869,119 |
Summary of Loans by Key Indicators of Credit Quality | The following table summarizes the Company’s loans by key indicators of credit quality: June 30, 2018 Pass Special Mention Substandard Doubtful (Dollars in thousands) Commercial and industrial loans $ 143,314 $ 2,848 $ 3,826 $ — Real estate: 1-4 single family residential loans 236,099 241 2,266 — Construction, land and development 150,740 11 1,807 — Commercial real estate loans (including multifamily) 302,702 280 2,423 — Consumer loans and leases 19,389 — 199 — Municipal and other loans 51,376 — — — Total loans $ 903,620 $ 3,380 $ 10,521 $ — December 31, 2017 Pass Special Mention Substandard Doubtful (Dollars in thousands) Commercial and industrial loans $ 129,288 $ 2,331 $ 3,421 $ — Real estate: 1-4 single family residential loans 228,450 1,090 2,970 — Construction, land and development 137,760 1,403 307 — Commercial real estate loans (including multifamily) 276,096 5,877 3,758 — Consumer loans and leases 22,528 — 208 — Municipal and other loans 53,632 — — — Total loans $ 847,754 $ 10,701 $ 10,664 $ — |
Summary of Investment in Loans Disaggregated Based on Method of Evaluating Impairment | The following table shows the Company’s investment in loans disaggregated based on the method of evaluating impairment: Loans - Recorded Investment Allowance for Credit Loss June 30, 2018 Individually Evaluated for Impairment Collectively Evaluated for Impairment Individually Evaluated for Impairment Collectively Evaluated for Impairment (Dollars in thousands) Commercial and industrial loans $ 2,370 $ 147,618 $ 1,461 $ 3,425 Real estate: 1-4 single family residential loans 1,506 237,100 — 318 Construction, land and development 24 152,534 — 195 Commercial real estate loans (including multifamily) 147 305,258 — 233 Consumer loans and leases 100 19,488 50 296 Municipal and other loans — 51,376 — 37 Total loans $ 4,147 $ 913,374 $ 1,511 $ 4,504 Loans - Recorded Investment Allowance for Credit Loss December 31, 2017 Individually Evaluated for Impairment Collectively Evaluated for Impairment Individually Evaluated for Impairment Collectively Evaluated for Impairment (Dollars in thousands) Commercial and industrial loans $ 2,194 $ 132,846 $ 1,226 $ 1,820 Real estate: 1-4 single family residential loans 1,292 231,218 119 783 Construction, land and development — 139,470 — 441 Commercial real estate loans (including multifamily) 447 285,284 — 898 Consumer loans and leases 53 22,683 16 182 Municipal and other loans — 53,632 — 167 Total loans $ 3,986 $ 865,133 $ 1,361 $ 4,291 |
Summary of Information Regarding Impaired Loans Evaluated for Specific Reserves | The following tables set forth certain information regarding the Company’s impaired loans that were evaluated for specific reserves: Impaired Loans - With Allowance Impaired Loans - With no Allowance June 30, 2018 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance (Dollars in thousands) Commercial and industrial loans $ 2,118 $ 2,176 $ 1,461 $ 252 $ 255 Real estate: 1-4 single family residential loans — — — 1,506 1,507 Construction, land and development — — — 24 24 Commercial real estate loans (including multifamily) — — — 147 147 Consumer loans and leases 81 81 50 19 19 Municipal and other loans — — — — — Total loans $ 2,199 $ 2,257 $ 1,511 $ 1,948 $ 1,952 Impaired Loans - With Allowance Impaired Loans - With no Allowance December 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance (Dollars in thousands) Commercial and industrial loans $ 1,811 $ 1,850 $ 1,226 $ 383 $ 386 Real estate: 1-4 single family residential loans 119 119 119 1,173 1,174 Construction, land and development — — — — — Commercial real estate loans (including multifamily) — — — 447 447 Consumer loans and leases 53 52 16 — — Municipal and other loans — — — — — Total loans $ 1,983 $ 2,021 $ 1,361 $ 2,003 $ 2,007 Three Months Ended June 30, 2018 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (Dollars in thousands) Commercial and industrial loans $ 2,435 $ — $ 1,764 $ — Real estate: 1-4 single family residential loans 1,511 — 631 — Construction, land and development 24 — — — Commercial real estate loans (including multifamily) 149 — 1,975 — Consumer loans and leases 101 — — — Municipal and other loans — — — — Total loans $ 4,220 $ — $ 4,370 $ — Six Months Ended June 30, 2018 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (Dollars in thousands) Commercial and industrial loans $ 2,620 $ — $ 1,991 $ — Real estate: 1-4 single family residential loans 1,518 — 635 — Construction, land and development 25 — — — Commercial real estate loans (including multifamily) 151 — 1,976 — Consumer loans and leases 103 — — — Municipal and other loans — — — — Total loans $ 4,417 $ — $ 4,602 $ — |
Summary of Troubled Debt Restructurings (TDRs) Based Upon Delinquency Status | The following table provides a summary of troubled debt restructurings (“TDRs”) based upon delinquency status, all of which are considered impaired: June 30, 2018 December 31, 2017 Number of contracts Recorded Investment Number of contracts Recorded Investment (Dollars in thousands) Performing TDRs: Commercial and industrial loans 2 $ 47 5 $ 270 Real estate: 1-4 single family residential loans 2 149 — — Construction, land and development — — — — Commercial real estate loans (including multifamily) — — — — Consumer loans and leases — — — — Municipal and other loans — — — — Total performing TDRs 4 196 5 270 Nonperforming TDRs 9 583 10 651 Total TDRs 13 $ 779 15 $ 921 Allowance attributable to TDRs $ 339 $ 411 |
Summary of TDRs Includes Newly Designated TDRs and Modifications to Existing TDRs | The following table summarizes TDRs and includes newly designated TDRs as well as modifications made to existing TDRs. Modifications may include, but are not limited to, granting a material extension of time, entering into a forbearance agreement, adjusting the interest rate, accepting interest only payments for an extended period of time, a change in the amortization period or a combination of any of these. Post-modification balances represent the recorded investment at the end of Day 2 in which the modification was made: Three Months Ended June 30, 2018 2017 Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Related Allowance Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Related Allowance (Dollars in thousands) Commercial and industrial loans 2 $ 73 $ 73 $ 53 2 $ 44 $ 44 $ 44 Real estate: 1-4 single family residential loans 1 34 34 — — — — — Construction, land and development — — — — — — — — Commercial real estate loans (including multifamily) — — — — — — — — Consumer loans and leases — — — — — — — — Municipal and other loans — — — — — — — — Six Months Ended June 30, 2018 2017 Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Related Allowance Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Related Allowance (Dollars in thousands) Commercial and industrial loans 7 $ 442 $ 442 $ 192 8 $ 427 $ 427 $ 134 Real estate: 1-4 single family residential loans 1 34 34 — — — — — Construction, land and development — — — — — — — — Commercial real estate loans (including multifamily) — — — — — — — — Consumer loans and leases — — — — — — — — Municipal and other loans — — — — — — — — |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Other Intangible Assets | Goodwill and other intangible assets, which consist of core deposit intangibles, are summarized as follows: June 30, 2018 December 31, 2017 (Dollars in thousands) Goodwill $ 4,485 $ 4,485 Core deposit intangible 7,179 7,179 Total 11,664 11,664 Less: Accumulated amortization (4,044 ) (3,693 ) Total, net $ 7,620 $ 7,971 |
Schedule of Estimated Amortization Expense for Intangible Assets | The estimated amount of amortization expense for core deposit intangible assets to be recognized over the next five fiscal years is as follows: Type of intangibles Remainder of 2018 2019 2020 2021 2022 2023 (Dollars in thousands) Core deposit intangible $ 351 $ 703 $ 703 $ 607 $ 371 $ 239 |
SBA Servicing Asset (Tables)
SBA Servicing Asset (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Transfers And Servicing Of Financial Assets [Abstract] | |
Summary of Activity Pertaining to SBA Servicing Rights | The following summarizes the activity pertaining to SBA servicing rights, which are in the consolidated balance sheets, for the three months ended June 30, 2018 and 2017: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (Dollars in thousands) Beginning balance $ 3,512 $ 3,288 $ 3,411 $ 3,132 Origination of servicing assets 247 475 579 765 Change in fair value: Due to run-off (245 ) (200 ) (453 ) (384 ) Due to market changes 7 (48 ) (16 ) 2 Ending balance $ 3,521 $ 3,515 $ 3,521 $ 3,515 |
Deposits (Tables)
Deposits (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Banking And Thrift [Abstract] | |
Summary of Deposits by Category | The following table sets forth the Company’s deposits by category: June 30, 2018 December 31, 2017 (Dollars in thousands) Noninterest-bearing demand deposits $ 183,618 $ 176,726 Interest-bearing NOW accounts 7,404 7,318 Savings and money market accounts 212,683 243,173 Time deposits 440,978 408,151 Total deposits $ 844,683 $ 835,368 Time deposits $100,000 and greater $ 345,067 $ 314,102 Time deposits $250,000 and greater 87,566 82,816 Related party deposits (executive officers and directors) 12,776 13,914 |
Stock-Based Compensation and 29
Stock-Based Compensation and Other Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Assumptions Used to Calculated Fair Value Utilizing Black-Scholes Pricing Model | The fair values of the stock options granted for the six months ended June 30, 2018 were determined utilizing the Black-Scholes pricing model methodology. A summary of assumptions used to calculate the fair values of the 2017 Stock Plan awards is presented below: 2017 Stock Plan Six Months Ended June 30, 2018 Expected volatility 23 % Expected dividend yield 0.0 % Expected term (years) 7.5 Risk-free interest rate 2.36 - 2.81% Weighted average grant date fair value $ 6.75 |
2008 Warrants | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Warrant Activity | Warrant activity for the period indicated is summarized as follows: Spirit of Texas Bancshares, Inc. 2008 Warrants Warrants Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) Weighted Average Remaining Contractual Life (Years) Outstanding at January 1, 2018 105,000 $ 10.00 Granted — Exercised (15,000 ) $ 10.00 $ 159 Forfeited (1) — Expired — Outstanding at June 30, 2018 90,000 $ 10.00 $ 954 0.38 Exercisable at June 30, 2018 90,000 $ 10.00 $ 954 0.38 Vested at June 30, 2018 90,000 $ 10.00 $ 954 0.38 |
2008 Stock Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Option Activity | Option activity for the period indicated is summarized as follows: 2008 Stock Plan Options Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) Weighted Average Remaining Contractual Life (Years) Outstanding at January 1, 2018 1,415,350 $ 12.59 Granted — Exercised (191,428 ) $ 10.63 $ 1,909 Forfeited (1) (18,000 ) $ 13.30 $ 131 Expired — Outstanding at June 30, 2018 1,205,922 $ 12.89 $ 9,298 5.17 Exercisable at June 30, 2018 962,882 $ 12.54 $ 7,761 4.66 Vested at June 30, 2018 962,882 $ 12.54 $ 7,761 4.66 (1) Forfeitures are accounted for in the period they occur. |
2017 Stock Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Option Activity | Option activity for the period indicated is summarized as follows: 2017 Stock Plan Options Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) Weighted Average Remaining Contractual Life (Years) Outstanding at January 1, 2018 127,927 $ 15.00 Granted 75,116 20.63 $ — Exercised — Forfeited (1) — Expired — Outstanding at June 30, 2018 203,043 $ 17.08 $ 715 9.10 Exercisable at June 30, 2018 76,770 $ 15.00 $ 430 8.66 Vested at June 30, 2018 76,770 $ 15.00 $ 430 8.66 (1) Forfeitures are accounted for in the period they occur. |
Basic and Diluted Earnings Pe30
Basic and Diluted Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted EPS | The following table presents the computation of basic and diluted EPS: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (Dollars in thousands, except per share data) Net income as reported $ 2,681 $ 2,009 $ 4,694 $ 2,228 Less: Participated securities share of undistributed earnings — — — 21 Net income available to common stockholders $ 2,681 $ 2,009 $ 4,694 $ 2,207 Weighted average number of common shares - basic 8,851,446 7,273,351 8,104,370 7,187,125 Effect of dilutive securities: Employee stock-based compensation awards and warrants 454,583 295,570 341,590 295,570 Weighted average number of common shares - diluted 9,306,029 7,568,921 8,445,960 7,482,695 Basic earnings per common share $ 0.30 $ 0.28 $ 0.58 $ 0.31 Diluted earnings per common share $ 0.29 $ 0.27 $ 0.56 $ 0.29 Anti-dilutive warrants and stock options 70,266 273,350 70,266 273,350 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Unfunded Commitments | Unfunded commitments are as follows: June 30, 2018 December 31, 2017 (Dollars in thousands) Unfunded loan commitments $ 130,286 $ 134,536 Commercial and standby letters of credit 85 91 Total $ 130,371 $ 134,627 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the assets and liabilities measured at fair value on a recurring basis: June 30, 2018 Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: U.S. Government agencies $ — $ 1,904 $ — $ 1,904 Residential mortgage-backed securities — 27,108 — 27,108 Corporate bonds and other debt securities — 5,507 — 5,507 SBA servicing rights — — 3,521 3,521 Total $ — $ 34,519 $ 3,521 $ 38,040 December 31, 2017 Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: U.S. Government agencies $ — $ 1,949 $ — $ 1,949 Residential mortgage-backed securities — 29,629 — 29,629 Corporate bonds and other debt securities — 5,665 — 5,665 SBA servicing rights — — 3,411 3,411 Total $ — $ 37,243 $ 3,411 $ 40,654 |
Schedule of Assets Measured at Fair Value on Non-Recurring Basis | The following tables provide information about certain assets measured at fair value on a non-recurring basis: Estimated Fair Value June 30, 2018 December 31, 2017 (Dollars in thousands) Assets (classified in Level 3): Impaired loans $ 2,820 $ 2,553 Other real estate and repossessed assets 289 21 |
Significant Unobservable Inputs Used in Recurring and Non-Recurring Fair Value Measurements | The following tables show significant unobservable inputs used in the recurring and non-recurring fair value measurements of Level 3 assets: Level 3 Asset Fair Value Valuation Technique Unobservable Inputs Range/Weighted Average June 30, 2018 Non-recurring: Impaired loans $ 2,820 Third party appraisals Collateral discounts 0.0% - 100.0% (33.0%) Other real estate owned 289 Third party appraisals Collateral discounts and estimated cost to sell 10.0 % SBA servicing assets 3,521 Discounted cash flows Conditional prepayment rate 6.8 % Discount rate 13.9 % December 31, 2017 Non-recurring: Impaired loans $ 2,553 Third party appraisals Collateral discounts 0.0% - 100.0% (11.6%) Other real estate owned 21 Third party appraisals Collateral discounts and estimated cost to sell 10.0 % SBA servicing assets 3,411 Discounted cash flows Conditional prepayment rate 6.7 % Discount rate 14.1 % |
Summary of Carrying Amounts and Estimated Fair Values of Financial Instruments | The carrying amounts and estimated fair values, as well as the level within the fair value hierarchy, of the Company’s financial instruments are as follows: June 30, 2018 Carrying Value Fair Value Level 1 Level 2 Level 3 (Dollars in thousands) Financial Assets: Cash and cash equivalents $ 52,986 $ 52,986 $ 52,986 $ — $ — Time deposits in other banks 245 245 245 — — Available for sale securities 34,519 34,519 — 34,519 — FHLB and other bank stock 4,830 4,830 — 4,830 — Loans, net 911,506 901,798 — — 901,798 Loans held for sale 7,715 8,360 — 8,360 — Accrued interest receivable 3,195 3,195 — 3,195 — Bank-owned life insurance 482 482 — 482 — SBA servicing rights 3,521 3,521 — — 3,521 Financial Liabilities: Deposits $ 844,683 $ 843,940 $ — $ 843,940 $ — Accrued interest payable 431 431 — 431 — Short-term borrowings 15,000 15,000 — 15,000 — Long-term borrowings 66,191 64,512 — 64,512 — December 31, 2017 Carrying Value Fair Value Level 1 Level 2 Level 3 (Dollars in thousands) Financial Assets: Cash and cash equivalents $ 57,949 $ 57,949 $ 57,949 $ — $ — Time deposits in other banks 245 245 245 — — Available for sale securities 37,243 37,243 — 37,243 — FHLB and other bank stock 4,812 4,812 — 4,812 — Loans, net 863,467 870,749 — — 870,749 Loans held for sale 3,814 4,188 — 4,188 — Accrued interest receivable 3,466 3,466 — 3,466 — Bank-owned life insurance 479 479 — 479 — SBA servicing rights 3,411 3,411 — — 3,411 Financial Liabilities: Deposits $ 835,368 $ 840,645 $ — $ 840,645 $ — Accrued interest payable 407 407 — 407 — Short-term borrowings 15,000 15,000 — 15,000 — Long-term borrowings 76,411 67,310 — 67,310 — |
Summary of Significant Accoun33
Summary of Significant Accounting Policies - Additional Information (Details) $ / shares in Units, $ in Thousands | May 04, 2018USD ($)$ / sharesshares | Mar. 16, 2017 | Jun. 30, 2018USD ($)shares |
Subsidiary Sale Of Stock [Line Items] | |||
Reverse stock split, description | As a result of the reverse stock split, every two shares of the Company’s issued and outstanding common stock were consolidated into one issued and outstanding share of common stock. The computations of all share and per share amounts in this Quarterly Report on Form 10-Q (this “Form 10-Q”) have been adjusted retroactively to reflect the reverse stock split. | ||
Reverse split of issued and outstanding common stock, ratio | 0.5 | ||
Net proceeds from initial public offering | $ | $ 42,219 | ||
Common Stock | |||
Subsidiary Sale Of Stock [Line Items] | |||
Number of shares issued and sold | shares | 2,300,000 | ||
Common Stock | Initial Public Offering | |||
Subsidiary Sale Of Stock [Line Items] | |||
Number of shares issued and sold | shares | 2,300,000 | ||
Stock issued, price per share | $ / shares | $ 21 | ||
Gross proceeds before deducting underwriting discounts and offering expenses | $ | $ 48,300 | ||
Net proceeds from initial public offering | $ | $ 42,200 | ||
Common Stock | Underwriters | |||
Subsidiary Sale Of Stock [Line Items] | |||
Number of shares issued and sold | shares | 300,000 |
Investment Securities - Schedul
Investment Securities - Schedule of Fair Values of Securities Available for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Schedule Of Available For Sale Securities [Line Items] | ||
Securities available for sale, Amortized Cost | $ 35,882 | $ 37,877 |
Securities available for sale, Unrealized Losses | 1,363 | 634 |
Available for sale securities, at fair value | 34,519 | 37,243 |
U.S. Government Agencies | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities available for sale, Amortized Cost | 2,013 | 2,010 |
Securities available for sale, Unrealized Losses | 109 | 61 |
Available for sale securities, at fair value | 1,904 | 1,949 |
Residential Mortgage-backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities available for sale, Amortized Cost | 28,180 | 30,156 |
Securities available for sale, Unrealized Losses | 1,072 | 527 |
Available for sale securities, at fair value | 27,108 | 29,629 |
Corporate Bonds and Other Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities available for sale, Amortized Cost | 5,689 | 5,711 |
Securities available for sale, Unrealized Losses | 182 | 46 |
Available for sale securities, at fair value | $ 5,507 | $ 5,665 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018USD ($)Security | Jun. 30, 2017Security | Jun. 30, 2018USD ($)Security | Jun. 30, 2017Security | Dec. 31, 2017USD ($) | |
Investments Debt And Equity Securities [Abstract] | |||||
Available for sale securities pledged | $ | $ 0 | $ 0 | $ 0 | ||
Debt Securities, Available-for-sale, Restriction Type [Extensible List] | us-gaap:CollateralPledgedMember | us-gaap:CollateralPledgedMember | us-gaap:CollateralPledgedMember | ||
Available for sale, securities number of positions | 50 | 50 | |||
Available for sale, securities in unrealized loss positions, number of positions | 49 | 49 | |||
Available for sale, securities in unrealized loss positions, number of positions, less than 12 months | 12 | 12 | |||
Available for sale securities, gross realized gain (loss), excluding other than temporary impairments | $ | $ 0 | ||||
Number of securities sold | 0 | 0 | 0 | 0 |
Investment Securities - Sched36
Investment Securities - Schedule of Securities Available for Sale by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Available for sale: | ||
Due after one year through five years, Amortized Cost | $ 4,125 | |
Due after five years through ten years, Amortized Cost | 3,100 | |
Due after ten years, Amortized Cost | 477 | |
Total available for sale, Amortized Cost | 35,882 | $ 37,877 |
Available for sale: | ||
Due after one year through five years. Fair Value | 4,003 | |
Due after five years through ten years. Fair Value | 2,957 | |
Due after ten years. Fair Value | 451 | |
Total available for sale, Fair Value | 34,519 | 37,243 |
Residential Mortgage-backed Securities | ||
Available for sale: | ||
Total available for sale, Amortized Cost | 28,180 | 30,156 |
Available for sale: | ||
Total available for sale, Fair Value | $ 27,108 | $ 29,629 |
Investment Securities - Sched37
Investment Securities - Schedule of Investment Securities Available for Sale and Aggregated by Investment Category and Length of Time Individual Securities in Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Schedule Of Available For Sale Securities [Line Items] | ||
Investment Securities, Available for sale, Fair Value, Less than 12 Months | $ 8,626 | $ 37,241 |
Investment Securities, Available for sale, Unrealized Loss, Less than 12 Months | 329 | 634 |
Investment Securities, Available for sale, Fair Value, 12 Months or More | 25,892 | |
Investment Securities, Available for sale, Unrealized Loss, 12 Months or More | 1,034 | |
Investment Securities, Available for sale, Fair Value | 34,518 | 37,241 |
Investment Securities, Available for sale, Unrealized Loss | 1,363 | 634 |
U.S. Government Agencies | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investment Securities, Available for sale, Fair Value, Less than 12 Months | 451 | 1,949 |
Investment Securities, Available for sale, Unrealized Loss, Less than 12 Months | 26 | 61 |
Investment Securities, Available for sale, Fair Value, 12 Months or More | 1,453 | |
Investment Securities, Available for sale, Unrealized Loss, 12 Months or More | 83 | |
Investment Securities, Available for sale, Fair Value | 1,904 | 1,949 |
Investment Securities, Available for sale, Unrealized Loss | 109 | 61 |
Residential Mortgage-backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investment Securities, Available for sale, Fair Value, Less than 12 Months | 4,604 | 29,627 |
Investment Securities, Available for sale, Unrealized Loss, Less than 12 Months | 184 | 527 |
Investment Securities, Available for sale, Fair Value, 12 Months or More | 22,503 | |
Investment Securities, Available for sale, Unrealized Loss, 12 Months or More | 888 | |
Investment Securities, Available for sale, Fair Value | 27,107 | 29,627 |
Investment Securities, Available for sale, Unrealized Loss | 1,072 | 527 |
Corporate Bonds and Other Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investment Securities, Available for sale, Fair Value, Less than 12 Months | 3,571 | 5,665 |
Investment Securities, Available for sale, Unrealized Loss, Less than 12 Months | 119 | 46 |
Investment Securities, Available for sale, Fair Value, 12 Months or More | 1,936 | |
Investment Securities, Available for sale, Unrealized Loss, 12 Months or More | 63 | |
Investment Securities, Available for sale, Fair Value | 5,507 | 5,665 |
Investment Securities, Available for sale, Unrealized Loss | $ 182 | $ 46 |
Loans, Net - Summary of Loans (
Loans, Net - Summary of Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Accounts Notes And Loans Receivable [Line Items] | |||||||
Total loans held in portfolio | [1] | $ 917,521 | $ 869,119 | ||||
Allowance for loan losses | (6,015) | $ (5,727) | (5,652) | $ (4,891) | $ (4,550) | $ (4,357) | |
Loans, net | 911,506 | 863,467 | |||||
Commercial and Industrial Loans | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Total loans held in portfolio | [2] | 149,988 | 135,040 | ||||
Consumer Loans and Leases | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Total loans held in portfolio | 19,588 | 22,736 | |||||
Municipal and Other Loans | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Total loans held in portfolio | 51,376 | 53,632 | |||||
Real Estate | 1-4 Single Family Residential Loans | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Total loans held in portfolio | 238,606 | 232,510 | |||||
Real Estate | Construction, Land and Development | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Total loans held in portfolio | 152,558 | 139,470 | |||||
Real Estate | Commercial Real Estate Loans (Including Multifamily) | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Total loans held in portfolio | $ 305,405 | $ 285,731 | |||||
[1] | Balance includes $(3.4) million and $(3.4) million of deferred fees, cost, premium and discount as of June 30, 2018 and December 31, 2017, respectively. | ||||||
[2] | Balance includes $72.4 million and $67.1 million of the unguaranteed portion of SBA loans as of June 30, 2018 and December 31, 2017, respectively. |
Loans, Net - Summary of Loans39
Loans, Net - Summary of Loans (Parenthetical) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred fees, cost, premium and discount | $ (3.4) | $ (3.4) |
SBA Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Unguaranteed portion of loans | $ 72.4 | $ 67.1 |
Loans, Net - Additional Informa
Loans, Net - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Accounts Notes And Loans Receivable [Line Items] | |||||
Pledged loans, collateral for FHLB advances | $ 362,800,000 | $ 362,800,000 | $ 358,200,000 | ||
Unfunded commitments to related parties | 130,371,000 | 130,371,000 | 134,627,000 | ||
Executive Officers and Directors | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Unfunded commitments to related parties | 0 | 0 | 0 | ||
Consumer Mortgage Loans | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Recorded mortgage loans in process of foreclosure | 0 | 0 | $ 0 | ||
SBA Loans | Director | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Servicing loans sold | 1,500,000 | ||||
Realized gains on servicing loans sold | 0 | ||||
SBA Loans | Third Party | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Servicing loans sold | 12,900,000 | $ 21,900,000 | 30,000,000 | $ 35,400,000 | |
Realized gains on servicing loans sold | $ 1,000,000 | $ 2,300,000 | $ 2,500,000 | $ 3,300,000 |
Loans, Net - Summary of Loans t
Loans, Net - Summary of Loans to Related Parties and Principal Owners (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Receivables [Abstract] | |||||
Principal outstanding, beginning of year | $ 442 | $ 541 | $ 463 | $ 9,036 | |
Additions (reductions) of affiliations | (717) | (8,425) | |||
Repayments | [1] | (21) | 692 | (42) | (95) |
Principal outstanding, end of year | $ 421 | $ 516 | $ 421 | $ 516 | |
[1] | During the three months ended June 30, 2017 there was a reclassification of repayments to reductions of affiliations. |
Allowance for Loan and Lease 42
Allowance for Loan and Lease Losses - Additional Information (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018USD ($)Loan | Dec. 31, 2017USD ($)Loan | |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Amount of defaults Lookback period | 5 years | |
Historical loss experience period | 5 years | |
Recorded investment, 90 days past due and still accruing | $ 1 | $ 33 |
Non-accrual loans, Past due | $ 4,038 | $ 3,562 |
Financing Receivables, Past Due Greater Than 90 Days or More and Still Accruing | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment, 90 days past due and still accruing number of loans | Loan | 1 | 1 |
Non-accrual loans, Past due | $ 840 | $ 427 |
Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Non-accrual loans, Past due | 511 | 209 |
Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Non-accrual loans, Past due | $ 458 | $ 57 |
Allowance for Loan and Lease 43
Allowance for Loan and Lease Losses - Allowance for Loan and Lease Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Loans And Leases Receivable Disclosure [Line Items] | ||||
Beginning Balance | $ 5,727 | $ 4,550 | $ 5,652 | $ 4,357 |
Charge-offs | (350) | (311) | (680) | (668) |
Recoveries | 3 | 2 | 69 | 2 |
Provision | 635 | 650 | 974 | 1,200 |
Ending Balance | 6,015 | 4,891 | 6,015 | 4,891 |
Commercial and Industrial Loans | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Beginning Balance | 2,906 | 2,451 | 3,046 | 2,347 |
Charge-offs | (321) | (280) | (645) | (540) |
Recoveries | 3 | 2 | 69 | 2 |
Provision | 2,298 | 409 | 2,416 | 773 |
Ending Balance | 4,886 | 2,582 | 4,886 | 2,582 |
Real Estate | 1-4 Single Family Residential Loans | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Beginning Balance | 887 | 676 | 902 | 647 |
Charge-offs | (5) | (5) | ||
Provision | (564) | 56 | (579) | 85 |
Ending Balance | 318 | 732 | 318 | 732 |
Real Estate | Construction, Land and Development Loans | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Beginning Balance | 540 | 380 | 441 | 364 |
Provision | (345) | 32 | (246) | 48 |
Ending Balance | 195 | 412 | 195 | 412 |
Real Estate | Commercial Real Estate Loans (Including Multifamily) | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Beginning Balance | 1,032 | 697 | 898 | 667 |
Charge-offs | (15) | |||
Provision | (799) | 103 | (665) | 148 |
Ending Balance | 233 | 800 | 233 | 800 |
Consumer Loans and Leases | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Beginning Balance | 175 | 194 | 198 | 186 |
Charge-offs | (24) | (31) | (30) | (113) |
Provision | 195 | 41 | 178 | 131 |
Ending Balance | 346 | 204 | 346 | 204 |
Municipal and Other Loans | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Beginning Balance | 187 | 152 | 167 | 146 |
Provision | (150) | 9 | (130) | 15 |
Ending Balance | $ 37 | $ 161 | $ 37 | $ 161 |
Allowance for Loan and Lease 44
Allowance for Loan and Lease Losses - Summary of Aging Analysis of Recorded Investment for Delinquent Loans by Portfolio and Segment (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment, Accruing, Current | $ 912,257 | $ 864,022 |
Recorded investment, Non-accrual | 4,038 | 3,562 |
Recorded investment, Total | 917,521 | 869,119 |
Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment, Accruing, Past due | 880 | 1,452 |
Recorded investment, Non-accrual | 511 | 209 |
Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment, Accruing, Past due | 345 | 50 |
Recorded investment, Non-accrual | 458 | 57 |
Financing Receivables, Past Due Greater Than 90 Days or More and Still Accruing | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment, Accruing, Past due | 1 | 33 |
Recorded investment, Non-accrual | 840 | 427 |
Commercial and Industrial Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment, Accruing, Current | 147,256 | 132,775 |
Recorded investment, Non-accrual | 2,410 | 1,927 |
Recorded investment, Total | 149,988 | 135,040 |
Commercial and Industrial Loans | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment, Accruing, Past due | 321 | 302 |
Commercial and Industrial Loans | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment, Accruing, Past due | 3 | |
Commercial and Industrial Loans | Financing Receivables, Past Due Greater Than 90 Days or More and Still Accruing | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment, Accruing, Past due | 1 | 33 |
Real Estate | 1-4 Single Family Residential Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment, Accruing, Current | 236,481 | 230,738 |
Recorded investment, Non-accrual | 1,357 | 1,135 |
Recorded investment, Total | 238,606 | 232,510 |
Real Estate | 1-4 Single Family Residential Loans | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment, Accruing, Past due | 423 | 637 |
Real Estate | 1-4 Single Family Residential Loans | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment, Accruing, Past due | 345 | |
Real Estate | Construction, Land and Development | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment, Accruing, Current | 152,523 | 139,470 |
Recorded investment, Non-accrual | 24 | |
Recorded investment, Total | 152,558 | 139,470 |
Real Estate | Construction, Land and Development | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment, Accruing, Past due | 11 | |
Real Estate | Commercial Real Estate Loans (Including Multifamily) | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment, Accruing, Current | 305,258 | 284,869 |
Recorded investment, Non-accrual | 147 | 447 |
Recorded investment, Total | 305,405 | 285,731 |
Real Estate | Commercial Real Estate Loans (Including Multifamily) | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment, Accruing, Past due | 415 | |
Consumer Loans and Leases | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment, Accruing, Current | 19,363 | 22,538 |
Recorded investment, Non-accrual | 100 | 53 |
Recorded investment, Total | 19,588 | 22,736 |
Consumer Loans and Leases | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment, Accruing, Past due | 125 | 98 |
Consumer Loans and Leases | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment, Accruing, Past due | 47 | |
Municipal and Other Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment, Accruing, Current | 51,376 | 53,632 |
Recorded investment, Total | $ 51,376 | $ 53,632 |
Allowance for Loan and Lease 45
Allowance for Loan and Lease Losses - Summary of Loans by Key Indicators of Credit Quality (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | $ 917,521 | $ 869,119 |
Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 903,620 | 847,754 |
Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 3,380 | 10,701 |
Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 10,521 | 10,664 |
Commercial and Industrial Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 149,988 | 135,040 |
Commercial and Industrial Loans | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 143,314 | 129,288 |
Commercial and Industrial Loans | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 2,848 | 2,331 |
Commercial and Industrial Loans | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 3,826 | 3,421 |
Real Estate | 1-4 Single Family Residential Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 238,606 | 232,510 |
Real Estate | 1-4 Single Family Residential Loans | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 236,099 | 228,450 |
Real Estate | 1-4 Single Family Residential Loans | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 241 | 1,090 |
Real Estate | 1-4 Single Family Residential Loans | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 2,266 | 2,970 |
Real Estate | Construction, Land and Development | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 152,558 | 139,470 |
Real Estate | Construction, Land and Development | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 150,740 | 137,760 |
Real Estate | Construction, Land and Development | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 11 | 1,403 |
Real Estate | Construction, Land and Development | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 1,807 | 307 |
Real Estate | Commercial Real Estate Loans (Including Multifamily) | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 305,405 | 285,731 |
Real Estate | Commercial Real Estate Loans (Including Multifamily) | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 302,702 | 276,096 |
Real Estate | Commercial Real Estate Loans (Including Multifamily) | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 280 | 5,877 |
Real Estate | Commercial Real Estate Loans (Including Multifamily) | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 2,423 | 3,758 |
Consumer Loans and Leases | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 19,588 | 22,736 |
Consumer Loans and Leases | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 19,389 | 22,528 |
Consumer Loans and Leases | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 199 | 208 |
Municipal and Other Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 51,376 | 53,632 |
Municipal and Other Loans | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | $ 51,376 | $ 53,632 |
Allowance for Loan and Lease 46
Allowance for Loan and Lease Losses - Summary of Investment in Loans Disaggregated Based on Method of Evaluating Impairment (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans - Recorded Investment, Individually Evaluated for Impairment | $ 4,147 | $ 3,986 |
Loans - Recorded Investment, Collectively Evaluated for Impairment | 913,374 | 865,133 |
Allowance for Credit Loss, Individually Evaluated for Impairment | 1,511 | 1,361 |
Allowance for Credit Loss, Collectively Evaluated for Impairment | 4,504 | 4,291 |
Commercial and Industrial Loans | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans - Recorded Investment, Individually Evaluated for Impairment | 2,370 | 2,194 |
Loans - Recorded Investment, Collectively Evaluated for Impairment | 147,618 | 132,846 |
Allowance for Credit Loss, Individually Evaluated for Impairment | 1,461 | 1,226 |
Allowance for Credit Loss, Collectively Evaluated for Impairment | 3,425 | 1,820 |
Real Estate | 1-4 Single Family Residential Loans | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans - Recorded Investment, Individually Evaluated for Impairment | 1,506 | 1,292 |
Loans - Recorded Investment, Collectively Evaluated for Impairment | 237,100 | 231,218 |
Allowance for Credit Loss, Individually Evaluated for Impairment | 119 | |
Allowance for Credit Loss, Collectively Evaluated for Impairment | 318 | 783 |
Real Estate | Construction, Land and Development | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans - Recorded Investment, Individually Evaluated for Impairment | 24 | |
Loans - Recorded Investment, Collectively Evaluated for Impairment | 152,534 | 139,470 |
Allowance for Credit Loss, Collectively Evaluated for Impairment | 195 | 441 |
Real Estate | Commercial Real Estate Loans (Including Multifamily) | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans - Recorded Investment, Individually Evaluated for Impairment | 147 | 447 |
Loans - Recorded Investment, Collectively Evaluated for Impairment | 305,258 | 285,284 |
Allowance for Credit Loss, Collectively Evaluated for Impairment | 233 | 898 |
Consumer Loans and Leases | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans - Recorded Investment, Individually Evaluated for Impairment | 100 | 53 |
Loans - Recorded Investment, Collectively Evaluated for Impairment | 19,488 | 22,683 |
Allowance for Credit Loss, Individually Evaluated for Impairment | 50 | 16 |
Allowance for Credit Loss, Collectively Evaluated for Impairment | 296 | 182 |
Municipal and Other Loans | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans - Recorded Investment, Collectively Evaluated for Impairment | 51,376 | 53,632 |
Allowance for Credit Loss, Collectively Evaluated for Impairment | $ 37 | $ 167 |
Allowance for Loan and Lease 47
Allowance for Loan and Lease Losses - Summary of Information Regarding Impaired Loans Evaluated for Specific Reserves (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Financing Receivable Impaired [Line Items] | |||||
Impaired Loans - With Allowance, Recorded Investment | $ 2,199 | $ 2,199 | $ 1,983 | ||
Impaired Loans - With Allowance, Unpaid Principal Balance | 2,257 | 2,257 | 2,021 | ||
Impaired Loans - With Allowance, Related Allowance | 1,511 | 1,511 | 1,361 | ||
Impaired Loans - With no Allowance, Recorded Investment | 1,948 | 1,948 | 2,003 | ||
Impaired Loans - With no Allowance, Unpaid Principal Balance | 1,952 | 1,952 | 2,007 | ||
Average Recorded Investment | 4,220 | $ 4,370 | 4,417 | $ 4,602 | |
Commercial and Industrial Loans | |||||
Financing Receivable Impaired [Line Items] | |||||
Impaired Loans - With Allowance, Recorded Investment | 2,118 | 2,118 | 1,811 | ||
Impaired Loans - With Allowance, Unpaid Principal Balance | 2,176 | 2,176 | 1,850 | ||
Impaired Loans - With Allowance, Related Allowance | 1,461 | 1,461 | 1,226 | ||
Impaired Loans - With no Allowance, Recorded Investment | 252 | 252 | 383 | ||
Impaired Loans - With no Allowance, Unpaid Principal Balance | 255 | 255 | 386 | ||
Average Recorded Investment | 2,435 | 1,764 | 2,620 | 1,991 | |
Real Estate | 1-4 Single Family Residential Loans | |||||
Financing Receivable Impaired [Line Items] | |||||
Impaired Loans - With Allowance, Recorded Investment | 119 | ||||
Impaired Loans - With Allowance, Unpaid Principal Balance | 119 | ||||
Impaired Loans - With Allowance, Related Allowance | 119 | ||||
Impaired Loans - With no Allowance, Recorded Investment | 1,506 | 1,506 | 1,173 | ||
Impaired Loans - With no Allowance, Unpaid Principal Balance | 1,507 | 1,507 | 1,174 | ||
Average Recorded Investment | 1,511 | 631 | 1,518 | 635 | |
Real Estate | Construction, Land and Development | |||||
Financing Receivable Impaired [Line Items] | |||||
Impaired Loans - With no Allowance, Recorded Investment | 24 | 24 | |||
Impaired Loans - With no Allowance, Unpaid Principal Balance | 24 | 24 | |||
Average Recorded Investment | 24 | 25 | |||
Real Estate | Commercial Real Estate Loans (Including Multifamily) | |||||
Financing Receivable Impaired [Line Items] | |||||
Impaired Loans - With no Allowance, Recorded Investment | 147 | 147 | 447 | ||
Impaired Loans - With no Allowance, Unpaid Principal Balance | 147 | 147 | 447 | ||
Average Recorded Investment | 149 | $ 1,975 | 151 | $ 1,976 | |
Consumer Loans and Leases | |||||
Financing Receivable Impaired [Line Items] | |||||
Impaired Loans - With Allowance, Recorded Investment | 81 | 81 | 53 | ||
Impaired Loans - With Allowance, Unpaid Principal Balance | 81 | 81 | 52 | ||
Impaired Loans - With Allowance, Related Allowance | 50 | 50 | $ 16 | ||
Impaired Loans - With no Allowance, Recorded Investment | 19 | 19 | |||
Impaired Loans - With no Allowance, Unpaid Principal Balance | 19 | 19 | |||
Average Recorded Investment | $ 101 | $ 103 |
Allowance for Loan and Lease 48
Allowance for Loan and Lease Losses - Summary of Troubled Debt Restructurings (TDRs) Based Upon Delinquency Status (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018USD ($)Contract | Jun. 30, 2017Contract | Jun. 30, 2018USD ($)Contract | Jun. 30, 2017Contract | Dec. 31, 2017USD ($)Contract | |
Financing Receivable Modifications [Line Items] | |||||
Number of contracts | 13 | 15 | |||
Recorded Investment | $ | $ 779 | $ 779 | $ 921 | ||
Allowance attributable to TDRs | $ | $ 339 | $ 339 | $ 411 | ||
Commercial and Industrial Loans | |||||
Financing Receivable Modifications [Line Items] | |||||
Number of contracts | 2 | 2 | 7 | 8 | |
Real Estate | 1-4 Single Family Residential Loans | |||||
Financing Receivable Modifications [Line Items] | |||||
Number of contracts | 1 | 1 | |||
Performing TDRs | |||||
Financing Receivable Modifications [Line Items] | |||||
Number of contracts | 4 | 5 | |||
Recorded Investment | $ | $ 196 | $ 196 | $ 270 | ||
Performing TDRs | Commercial and Industrial Loans | |||||
Financing Receivable Modifications [Line Items] | |||||
Number of contracts | 2 | 5 | |||
Recorded Investment | $ | 47 | $ 47 | $ 270 | ||
Performing TDRs | Real Estate | 1-4 Single Family Residential Loans | |||||
Financing Receivable Modifications [Line Items] | |||||
Number of contracts | 2 | ||||
Recorded Investment | $ | 149 | $ 149 | |||
Nonperforming TDRs | |||||
Financing Receivable Modifications [Line Items] | |||||
Number of contracts | 9 | 10 | |||
Recorded Investment | $ | $ 583 | $ 583 | $ 651 |
Allowance for Loan and Lease 49
Allowance for Loan and Lease Losses - Summary of TDRs Includes Newly Designated TDRs and Modifications to Existing TDRs (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018USD ($)Contract | Jun. 30, 2017USD ($)Contract | Jun. 30, 2018USD ($)Contract | Jun. 30, 2017USD ($)Contract | Dec. 31, 2017Contract | |
Financing Receivable Modifications [Line Items] | |||||
Number of contracts | Contract | 13 | 15 | |||
Commercial and Industrial Loans | |||||
Financing Receivable Modifications [Line Items] | |||||
Number of contracts | Contract | 2 | 2 | 7 | 8 | |
Pre- Modification Outstanding Recorded Investment | $ 73 | $ 44 | $ 442 | $ 427 | |
Post- Modification Outstanding Recorded Investment | 73 | 44 | 442 | 427 | |
Related Allowance | $ 53 | $ 44 | $ 192 | $ 134 | |
Real Estate | 1-4 Single Family Residential Loans | |||||
Financing Receivable Modifications [Line Items] | |||||
Number of contracts | Contract | 1 | 1 | |||
Pre- Modification Outstanding Recorded Investment | $ 34 | $ 34 | |||
Post- Modification Outstanding Recorded Investment | $ 34 | $ 34 |
Goodwill and Intangibles - Sche
Goodwill and Intangibles - Schedule of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 4,485 | $ 4,485 |
Core deposit intangible | 7,179 | 7,179 |
Total | 11,664 | 11,664 |
Less: Accumulated amortization | (4,044) | (3,693) |
Total, net | $ 7,620 | $ 7,971 |
Goodwill and Intangibles - Addi
Goodwill and Intangibles - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Finite Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 175 | $ 175 | $ 351 | $ 351 |
Core Deposit Intangible | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 351 | $ 351 |
Goodwill and Intangibles - Sc52
Goodwill and Intangibles - Schedule of Estimated Amortization Expense for Intangible Assets (Details) - Core Deposit Intangible $ in Thousands | Jun. 30, 2018USD ($) |
Finite Lived Intangible Assets [Line Items] | |
Remainder of 2018 | $ 351 |
2,019 | 703 |
2,020 | 703 |
2,021 | 607 |
2,022 | 371 |
2,023 | $ 239 |
SBA Servicing Asset - Additiona
SBA Servicing Asset - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Transfers And Servicing Of Financial Assets [Abstract] | ||
Unpaid principal balances of loans serviced | $ 289.7 | $ 275.2 |
SBA Servicing Asset - Summary o
SBA Servicing Asset - Summary of Activity Pertaining to SBA Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Transfers And Servicing Of Financial Assets [Abstract] | ||||
Beginning balance | $ 3,512 | $ 3,288 | $ 3,411 | $ 3,132 |
Origination of servicing assets | 247 | 475 | 579 | 765 |
Change in fair value: | ||||
Due to run-off | (245) | (200) | (453) | (384) |
Due to market changes | 7 | (48) | (16) | 2 |
Ending balance | $ 3,521 | $ 3,515 | $ 3,521 | $ 3,515 |
Deposits - Summary of Deposits
Deposits - Summary of Deposits by Category (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Banking And Thrift [Abstract] | ||
Noninterest-bearing demand deposits | $ 183,618 | $ 176,726 |
Interest-bearing NOW accounts | 7,404 | 7,318 |
Savings and money market accounts | 212,683 | 243,173 |
Time deposits | 440,978 | 408,151 |
Total deposits | 844,683 | 835,368 |
Time deposits $100,000 and greater | 345,067 | 314,102 |
Time deposits $250,000 and greater | 87,566 | 82,816 |
Related party deposits (executive officers and directors) | $ 12,776 | $ 13,914 |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Banking And Thrift [Abstract] | ||
Aggregate amount of overdraft demand deposits reclassified to loans | $ 17 | $ 27 |
Aggregate amount of maturities for time deposits, period | 5 years | |
Aggregate amount of maturities for time deposits, year one | $ 273,000 | |
Aggregate amount of maturities for time deposits, year two | 125,000 | |
Aggregate amount of maturities for time deposits, year three | 22,300 | |
Aggregate amount of maturities for time deposits, year four | 8,900 | |
Aggregate amount of maturities for time deposits, year five | $ 11,800 |
Stock-Based Compensation and 57
Stock-Based Compensation and Other Benefit Plans - Summary of Option Activity (Details) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2018USD ($)$ / sharesshares | ||
2008 Stock Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Options, Outstanding | shares | 1,415,350 | |
Options, Exercised | shares | (191,428) | |
Options, Forfeited | shares | (18,000) | [1] |
Options, Outstanding | shares | 1,205,922 | |
Options, Exercisable | shares | 962,882 | |
Options, Vested | shares | 962,882 | |
Weighted Average Exercise Price, Outstanding | $ / shares | $ 12.59 | |
Weighted Average Exercise Price, Exercised | $ / shares | 10.63 | |
Weighted Average Exercise Price, Forfeited | $ / shares | 13.30 | [1] |
Weighted Average Exercise Price, Outstanding | $ / shares | 12.89 | |
Weighted Average Exercise Price, Exercisable | $ / shares | 12.54 | |
Weighted Average Exercise Price, Vested | $ / shares | $ 12.54 | |
Aggregate Intrinsic Value, Exercised | $ | $ 1,909 | |
Aggregate Intrinsic Value, Forfeited | $ | 131 | |
Aggregate Intrinsic Value, Outstanding | $ | 9,298 | |
Aggregate Intrinsic Value, Exercisable | $ | 7,761 | |
Aggregate Intrinsic Value, Vested | $ | $ 7,761 | |
Weighted Average Remaining Contractual Life (Years), Outstanding | 5 years 2 months 1 day | |
Weighted Average Remaining Contractual Life (Years), Exercisable | 4 years 7 months 28 days | |
Weighted Average Remaining Contractual Life (Years), Vested | 4 years 7 months 28 days | |
2017 Stock Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Options, Outstanding | shares | 127,927 | |
Options, Granted | shares | 75,116 | |
Options, Outstanding | shares | 203,043 | |
Options, Exercisable | shares | 76,770 | |
Options, Vested | shares | 76,770 | |
Weighted Average Exercise Price, Outstanding | $ / shares | $ 15 | |
Weighted Average Exercise Price, Granted | $ / shares | 20.63 | |
Weighted Average Exercise Price, Outstanding | $ / shares | 17.08 | |
Weighted Average Exercise Price, Exercisable | $ / shares | 15 | |
Weighted Average Exercise Price, Vested | $ / shares | $ 15 | |
Aggregate Intrinsic Value, Outstanding | $ | $ 715 | |
Aggregate Intrinsic Value, Exercisable | $ | 430 | |
Aggregate Intrinsic Value, Vested | $ | $ 430 | |
Weighted Average Remaining Contractual Life (Years), Outstanding | 9 years 1 month 6 days | |
Weighted Average Remaining Contractual Life (Years), Exercisable | 8 years 7 months 28 days | |
Weighted Average Remaining Contractual Life (Years), Vested | 8 years 7 months 28 days | |
[1] | Forfeitures are accounted for in the period they occur. |
Stock-Based Compensation and 58
Stock-Based Compensation and Other Benefit Plans - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2018USD ($)shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Stock option activity | shares | 0 |
2008 Warrant | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Remaining compensation expense to be recognized | $ 0 |
2008 Stock Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Total unrecognized compensation cost | $ 902,000 |
Compensation cost recognized weighted average remaining period | 2 years 1 month 24 days |
2017 Stock Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Total unrecognized compensation cost | $ 663,000 |
Compensation cost recognized weighted average remaining period | 4 years 6 months 3 days |
Stock-Based Compensation and 59
Stock-Based Compensation and Other Benefit Plans - Summary of Assumptions Used to Calculated Fair Value Utilizing Black-Scholes Pricing Model (Details) - 2017 Stock Plan | 6 Months Ended |
Jun. 30, 2018$ / shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Expected volatility | 23.00% |
Expected dividend yield | 0.00% |
Expected term (years) | 7 years 6 months |
Risk-free interest rate, minimum | 2.36% |
Risk-free interest rate, maximum | 2.81% |
Weighted average grant date fair value | $ 6.75 |
Stock-Based Compensation and 60
Stock-Based Compensation and Other Benefit Plans - Summary of Warrant Activity (Details) - 2008 Warrants $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Warrants, Outstanding | shares | 105,000 |
Warrants, Exercised | shares | (15,000) |
Warrants, Outstanding | shares | 90,000 |
Warrants, Exercisable | shares | 90,000 |
Warrants, Vested | shares | 90,000 |
Weighted Average Exercise Price, Outstanding | $ / shares | $ 10 |
Weighted Average Exercise Price, Exercised | $ / shares | 10 |
Weighted Average Exercise Price, Outstanding | $ / shares | 10 |
Weighted Average Exercise Price, Exercisable | $ / shares | 10 |
Weighted Average Exercise Price, Vested | $ / shares | $ 10 |
Aggregate Intrinsic Value, Exercised | $ | $ 159 |
Aggregate Intrinsic Value, Outstanding | $ | 954 |
Aggregate Intrinsic Value, Exercisable | $ | 954 |
Aggregate Intrinsic Value, Vested | $ | $ 954 |
Weighted Average Remaining Contractual Life (Years), Outstanding | 4 months 17 days |
Weighted Average Remaining Contractual Life (Years), Exercisable | 4 months 17 days |
Weighted Average Remaining Contractual Life (Years), Vested | 4 months 17 days |
Basic and Diluted Earnings Pe61
Basic and Diluted Earnings Per Common Share - Schedule of Computation of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Net income as reported | $ 2,681 | $ 2,009 | $ 4,694 | $ 2,228 |
Less: Participated securities share of undistributed earnings | 21 | |||
Net income available to common stockholders | $ 2,681 | $ 2,009 | $ 4,694 | $ 2,207 |
Weighted average number of common shares - basic | 8,851,446 | 7,273,351 | 8,104,370 | 7,187,125 |
Effect of dilutive securities: | ||||
Employee stock-based compensation awards and warrants | 454,583 | 295,570 | 341,590 | 295,570 |
Weighted average number of common shares - diluted | 9,306,029 | 7,568,921 | 8,445,960 | 7,482,695 |
Basic earnings per common share | $ 0.30 | $ 0.28 | $ 0.58 | $ 0.31 |
Diluted earnings per common share | $ 0.29 | $ 0.27 | $ 0.56 | $ 0.29 |
Anti-dilutive warrants and stock options | 70,266 | 273,350 | 70,266 | 273,350 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Income Tax Contingency [Line Items] | |||||
Effective tax rate | 20.40% | 33.10% | 20.10% | 34.30% | |
Effective statutory tax rate | 21.00% | 21.00% | 34.00% | ||
Interest and penalties associated with income taxes | $ 0 | $ 0 | $ 0 | $ 0 | |
Other Liabilities | |||||
Income Tax Contingency [Line Items] | |||||
Uncertain tax position | $ 903,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Unfunded Commitments | Commitments for Exposure to Credit Loss | ||
Loss Contingencies [Line Items] | ||
Reserve for unfunded commitments | $ 40 | $ 40 |
Commitments and Contingencies64
Commitments and Contingencies - Schedule of Unfunded Commitments (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Supply Commitment [Line Items] | ||
Unfunded commitments, Total | $ 130,371 | $ 134,627 |
Commercial and Standby Letters of Credit | ||
Supply Commitment [Line Items] | ||
Unfunded commitments, Total | 85 | 91 |
Unfunded Loan Commitments | ||
Supply Commitment [Line Items] | ||
Unfunded commitments, Total | $ 130,286 | $ 134,536 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Assets: | ||
Total available for sale, Fair Value | $ 34,519 | $ 37,243 |
U.S. Government Agencies | ||
Assets: | ||
Total available for sale, Fair Value | 1,904 | 1,949 |
Residential Mortgage-backed Securities | ||
Assets: | ||
Total available for sale, Fair Value | 27,108 | 29,629 |
Corporate Bonds and Other Debt Securities | ||
Assets: | ||
Total available for sale, Fair Value | 5,507 | 5,665 |
Level 2 | ||
Assets: | ||
Total available for sale, Fair Value | 34,519 | 37,243 |
Fair Value Measurements on Recurring Basis | ||
Assets: | ||
Total available for sale, Fair Value | 38,040 | 40,654 |
Fair Value Measurements on Recurring Basis | U.S. Government Agencies | ||
Assets: | ||
Total available for sale, Fair Value | 1,904 | 1,949 |
Fair Value Measurements on Recurring Basis | Residential Mortgage-backed Securities | ||
Assets: | ||
Total available for sale, Fair Value | 27,108 | 29,629 |
Fair Value Measurements on Recurring Basis | Corporate Bonds and Other Debt Securities | ||
Assets: | ||
Total available for sale, Fair Value | 5,507 | 5,665 |
Fair Value Measurements on Recurring Basis | SBA Servicing Rights | ||
Assets: | ||
Total available for sale, Fair Value | 3,521 | 3,411 |
Fair Value Measurements on Recurring Basis | Level 2 | ||
Assets: | ||
Total available for sale, Fair Value | 34,519 | 37,243 |
Fair Value Measurements on Recurring Basis | Level 2 | U.S. Government Agencies | ||
Assets: | ||
Total available for sale, Fair Value | 1,904 | 1,949 |
Fair Value Measurements on Recurring Basis | Level 2 | Residential Mortgage-backed Securities | ||
Assets: | ||
Total available for sale, Fair Value | 27,108 | 29,629 |
Fair Value Measurements on Recurring Basis | Level 2 | Corporate Bonds and Other Debt Securities | ||
Assets: | ||
Total available for sale, Fair Value | 5,507 | 5,665 |
Fair Value Measurements on Recurring Basis | Level 3 | ||
Assets: | ||
Total available for sale, Fair Value | 3,521 | 3,411 |
Fair Value Measurements on Recurring Basis | Level 3 | SBA Servicing Rights | ||
Assets: | ||
Total available for sale, Fair Value | $ 3,521 | $ 3,411 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018USD ($) | Jun. 30, 2018USD ($) | |
Fair Value Disclosures [Abstract] | ||
Fair value, assets, level 1 to level 2 transfers | $ 0 | $ 0 |
Fair value, assets, level 2 to level 1 transfers | 0 | 0 |
Fair value, assets, transfers into level 3 | 0 | 0 |
Fair value, assets, transfers out of level 3 | $ 0 | $ 0 |
Fair Value Measurements - Sch67
Fair Value Measurements - Schedule of Assets Measured at Fair Value on Non-Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Assets (classified in Level 3): | ||
Other real estate owned and repossessed assets | $ 289 | $ 21 |
Fair Value Measurements on Non-Recurring Basis | Level 3 | ||
Assets (classified in Level 3): | ||
Impaired loans | 2,820 | 2,553 |
Other real estate owned and repossessed assets | $ 289 | $ 21 |
Fair Value Measurements - Signi
Fair Value Measurements - Significant Unobservable Inputs Used in Recurring and Non-Recurring Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Non-recurring: | ||||||
Other real estate owned | $ 289 | $ 21 | ||||
SBA servicing asset | 3,521 | $ 3,512 | 3,411 | $ 3,515 | $ 3,288 | $ 3,132 |
Level 3 | ||||||
Non-recurring: | ||||||
SBA servicing asset | 3,521 | 3,411 | ||||
Level 3 | Fair Value Measurements on Non-Recurring Basis | ||||||
Non-recurring: | ||||||
Impaired loans | 2,820 | 2,553 | ||||
Other real estate owned | $ 289 | $ 21 | ||||
Level 3 | Fair Value Measurements on Non-Recurring Basis | Weighted Average | Collateral Discounts | ||||||
Non-recurring: | ||||||
Range/Weighted Average | 33.00% | 11.60% | ||||
Level 3 | Fair Value Measurements on Non-Recurring Basis | Weighted Average | Collateral Discounts and Estimated Cost to Sell | ||||||
Non-recurring: | ||||||
Range/Weighted Average | 10.00% | 10.00% | ||||
Level 3 | Fair Value Measurements on Non-Recurring Basis | Weighted Average | Conditional Prepayment Rate | ||||||
Non-recurring: | ||||||
Range/Weighted Average | 6.80% | 6.70% | ||||
Level 3 | Fair Value Measurements on Non-Recurring Basis | Weighted Average | Discount Rate | ||||||
Non-recurring: | ||||||
Range/Weighted Average | 13.90% | 14.10% | ||||
Level 3 | Fair Value Measurements on Non-Recurring Basis | Minimum | Collateral Discounts | ||||||
Non-recurring: | ||||||
Range/Weighted Average | 0.00% | 0.00% | ||||
Level 3 | Fair Value Measurements on Non-Recurring Basis | Maximum | Collateral Discounts | ||||||
Non-recurring: | ||||||
Range/Weighted Average | 100.00% | 100.00% | ||||
Level 3 | Fair Value Measurements on Non-Recurring Basis | Third Party Appraisals | ||||||
Non-recurring: | ||||||
Impaired loans | $ 2,820 | $ 2,553 | ||||
Other real estate owned | 289 | 21 | ||||
Level 3 | Fair Value Measurements on Non-Recurring Basis | Discounted Cash Flows | ||||||
Non-recurring: | ||||||
SBA servicing asset | $ 3,521 | $ 3,411 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Financial Assets: | ||||||
Total available for sale, Fair Value | $ 34,519 | $ 37,243 | ||||
SBA servicing rights | 3,521 | $ 3,512 | 3,411 | $ 3,515 | $ 3,288 | $ 3,132 |
Level 1 | ||||||
Financial Assets: | ||||||
Cash and cash equivalents | 52,986 | 57,949 | ||||
Time deposits in other banks | 245 | 245 | ||||
Level 2 | ||||||
Financial Assets: | ||||||
Total available for sale, Fair Value | 34,519 | 37,243 | ||||
FHLB and other bank stock | 4,830 | 4,812 | ||||
Loans held for sale | 8,360 | 4,188 | ||||
Accrued interest receivable | 3,195 | 3,466 | ||||
Bank-owned life insurance | 482 | 479 | ||||
Financial Liabilities: | ||||||
Deposits | 843,940 | 840,645 | ||||
Accrued interest payable | 431 | 407 | ||||
Short-term borrowings | 15,000 | 15,000 | ||||
Long-term borrowings | 64,512 | 67,310 | ||||
Level 3 | ||||||
Financial Assets: | ||||||
Loans, net | 901,798 | 870,749 | ||||
SBA servicing rights | 3,521 | 3,411 | ||||
Carrying Value | ||||||
Financial Assets: | ||||||
Cash and cash equivalents | 52,986 | 57,949 | ||||
Time deposits in other banks | 245 | 245 | ||||
Total available for sale, Fair Value | 34,519 | 37,243 | ||||
FHLB and other bank stock | 4,830 | 4,812 | ||||
Loans, net | 911,506 | 863,467 | ||||
Loans held for sale | 7,715 | 3,814 | ||||
Accrued interest receivable | 3,195 | 3,466 | ||||
Bank-owned life insurance | 482 | 479 | ||||
SBA servicing rights | 3,521 | 3,411 | ||||
Financial Liabilities: | ||||||
Deposits | 844,683 | 835,368 | ||||
Accrued interest payable | 431 | 407 | ||||
Short-term borrowings | 15,000 | 15,000 | ||||
Long-term borrowings | 66,191 | 76,411 | ||||
Fair Value | ||||||
Financial Assets: | ||||||
Cash and cash equivalents | 52,986 | 57,949 | ||||
Time deposits in other banks | 245 | 245 | ||||
Total available for sale, Fair Value | 34,519 | 37,243 | ||||
FHLB and other bank stock | 4,830 | 4,812 | ||||
Loans, net | 901,798 | 870,749 | ||||
Loans held for sale | 8,360 | 4,188 | ||||
Accrued interest receivable | 3,195 | 3,466 | ||||
Bank-owned life insurance | 482 | 479 | ||||
SBA servicing rights | 3,521 | 3,411 | ||||
Financial Liabilities: | ||||||
Deposits | 843,940 | 840,645 | ||||
Accrued interest payable | 431 | 407 | ||||
Short-term borrowings | 15,000 | 15,000 | ||||
Long-term borrowings | $ 64,512 | $ 67,310 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Subsequent Events - Comanche National Corporation $ in Millions | Jul. 19, 2018USD ($)shares |
Subsequent Event [Line Items] | |
Estimated cash payment for business acquisition | $ | $ 12.2 |
Common Stock | |
Subsequent Event [Line Items] | |
Number of shares transfered for business acquisition | shares | 2,142,857 |