Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 23, 2015 | Oct. 09, 2014 | |
Document and Entity Information | |||
Entity Registrant Name | Veritex Holdings, Inc. | ||
Entity Central Index Key | 1501570 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Public Float | $89,590,000 | ||
Entity Common Stock, Shares Outstanding | 9,484,641 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash and due from banks | $9,223 | $8,484 |
Interest bearing deposits in other banks | 84,028 | 68,162 |
Total cash and cash equivalents | 93,251 | 76,646 |
Investment securities | 45,127 | 45,604 |
Loans held for sale | 8,858 | 2,051 |
Loans, net of allowance for loan losses of $5,981 and $5,018, respectively | 597,278 | 490,158 |
Accrued interest receivable | 1,542 | 1,351 |
Bank-owned life insurance | 17,822 | 10,475 |
Bank premises, furniture and equipment, net | 11,150 | 9,952 |
Non-marketable equity securities | 4,139 | 2,714 |
Investment in unconsolidated subsidiary | 93 | 93 |
Other real estate owned | 105 | 1,797 |
Intangible assets | 1,261 | 1,567 |
Goodwill | 19,148 | 19,148 |
Other assets | 2,512 | 3,415 |
Total assets | 802,286 | 664,971 |
Deposits: | ||
Noninterest-bearing | 251,124 | 218,990 |
Interest-bearing | 387,619 | 354,948 |
Total deposits | 638,743 | 573,938 |
Accounts payable and accrued expenses | 1,582 | 1,214 |
Accrued interest payable and other liabilities | 575 | 508 |
Advances from Federal Home Loan Bank | 40,000 | 15,000 |
Junior subordinated debentures | 3,093 | 3,093 |
Subordinated notes | 4,981 | 4,979 |
Total liabilities | 688,974 | 598,732 |
Commitments and contingencies (Note 6) | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value; 10,000,000 and 500,000 shares authorized at September 30, 2014 and December 31, 2013, respectively; 8,000 shares Series C, issued and outstanding with a $1,000 liquidation value | 8,000 | 8,000 |
Common stock, $0.01 par value; 75,000,000 and 10,000,000 shares authorized at December 31, 2014 and December 31, 2013, respectively; 9,470,832 and 5,804,703 shares issued and outstanding at December 31 2014 and December 31, 2013, respectively, (excluding 10,000 shares held in treasury) | 95 | 58 |
Additional paid-in capital | 97,469 | 55,303 |
Retained earnings | 8,047 | 2,922 |
Unallocated Employee Stock Ownership Plan shares; 36,935 shares at September 30, 2014 | -401 | |
Accumulated other comprehensive income | 172 | 26 |
Treasury stock, 10,000 shares at cost | -70 | -70 |
Total stockholders' equity | 113,312 | 66,239 |
Total liabilities and stockholders' equity | $802,286 | $664,971 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Consolidated Balance Sheets | ||
Allowance for loan losses | $5,981 | $5,018 |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 10,000,000 | 500,000 |
Series C preferred stock, shares issued | 8,000 | 8,000 |
Series C preferred stock, shares outstanding | 8,000 | 8,000 |
Series C preferred stock, liquidation value (in dollars per share) | $1,000 | $1,000 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 75,000,000 | 10,000,000 |
Common stock, shares issued | 9,470,832 | 5,804,703 |
Common stock, shares outstanding | 9,470,832 | 5,804,703 |
Unallocated Employee Stock Ownership Plan shares, shares | 36,935 | |
Treasury stock, shares | 10,000 | 10,000 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest income: | |||
Interest and fees on loans | $27,236 | $22,755 | $20,619 |
Interest on investment securities | 839 | 613 | 655 |
Interest on deposits in other banks | 182 | 132 | 108 |
Interest on other | 2 | 2 | 8 |
Total interest income | 28,259 | 23,502 | 21,390 |
Interest expense: | |||
Interest on deposit accounts | 2,421 | 2,207 | 1,911 |
Interest on borrowings | 498 | 254 | 386 |
Total interest expense | 2,919 | 2,461 | 2,297 |
Net interest income (expense) | 25,340 | 21,041 | 19,093 |
Provision for loan losses | 1,423 | 1,883 | 2,953 |
Net interest income after provision for loan losses | 23,917 | 19,158 | 16,140 |
Noninterest income: | |||
Service charges on deposit accounts | 833 | 726 | 700 |
Gain on sales of investment securities | 34 | ||
Gain on sales of loans held for sale | 641 | 632 | 248 |
(Loss) gain on sales of other real estate owned, net | 10 | 20 | 61 |
Bank-owned life insurance | 427 | 385 | 180 |
Other | 551 | 628 | 458 |
Total noninterest income | 2,496 | 2,391 | 1,647 |
Noninterest expense: | |||
Salaries and employee benefits | 10,037 | 9,084 | 9,205 |
Occupancy of bank premises | 1,863 | 1,694 | 1,546 |
Depreciation and amortization | 1,339 | 1,266 | 1,059 |
Data processing | 881 | 729 | 880 |
FDIC assessment fees | 421 | 378 | 234 |
Legal fees | 125 | 80 | 380 |
Other professional fees | 1,044 | 574 | 668 |
Advertising and promotions | 186 | 142 | 167 |
Utilities and telephone | 286 | 295 | 399 |
Other real estate owned expenses and writedowns | 210 | 399 | 175 |
Other | 2,111 | 1,723 | 1,459 |
Total noninterest expense | 18,503 | 16,364 | 16,172 |
Net income from operations | 7,910 | 5,185 | 1,615 |
Income tax expense (benefit) | 2,705 | 1,777 | 136 |
Net income | 5,205 | 3,408 | 1,479 |
Preferred stock dividends | 80 | 60 | 100 |
Net income available to common stockholders | $5,125 | $3,348 | $1,379 |
Basic earnings per share (in dollars per share) | $0.73 | $0.58 | $0.24 |
Diluted earnings per share (in dollars per share) | $0.72 | $0.57 | $0.24 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statements of Comprehensive Income | |||
Net income | $5,205 | $3,408 | $1,479 |
Other comprehensive (loss) income: | |||
Unrealized (losses) gains on securities available for sale arising during the period, net | 255 | -686 | 230 |
Reclassification adjustment for net gains included in net income | 34 | ||
Other comprehensive (losses) gains before tax | 221 | -686 | 230 |
Income tax (benefit) expense | 75 | -233 | 78 |
Other comprehensive (losses) gains, net of tax | 146 | -453 | 152 |
Comprehensive income | $5,351 | $2,955 | $1,631 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (USD $) | Preferred Stock. | Common stock | Common stock | Common stock | Additional Paid-In Capital | Additional Paid-In Capital | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Unallocated Employee Stock Ownership Plan Shares | Treasury Stock | Private offering | Initial public offering | Total |
Private offering | Initial public offering | Private offering | Initial public offering | |||||||||||
Balance at Dec. 31, 2011 | $8,000,000 | $56,000 | $52,098,000 | ($1,805,000) | $327,000 | $58,676,000 | ||||||||
Balance (in shares) at Dec. 31, 2011 | 5,554,487 | |||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Sale of common stock | 1,000 | 1,397,000 | 1,398,000 | |||||||||||
Sale of common stock (in shares) | 139,853 | |||||||||||||
Preferred stock dividend Series C | -100,000 | -100,000 | ||||||||||||
Stock based compensation | 255,000 | 255,000 | ||||||||||||
Net income | 1,479,000 | 1,479,000 | ||||||||||||
Other comprehensive income (loss) | 152,000 | 152,000 | ||||||||||||
Balance at Dec. 31, 2012 | 8,000,000 | 57,000 | 53,750,000 | -426,000 | 479,000 | 61,860,000 | ||||||||
Balance (in shares) at Dec. 31, 2012 | 5,694,340 | |||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Sale of common stock | 1,000 | 1,209,000 | 1,210,000 | |||||||||||
Sale of common stock (in shares) | 120,363 | |||||||||||||
Preferred stock dividend Series C | -60,000 | -60,000 | ||||||||||||
Purchase of Treasury Stock at Cost | -10,000 | -70,000 | -70,000 | |||||||||||
Issuance of warrants related to subordinated debt | 21,000 | 21,000 | ||||||||||||
Stock based compensation | 323,000 | 323,000 | ||||||||||||
Net income | 3,408,000 | 3,408,000 | ||||||||||||
Other comprehensive income (loss) | -453,000 | -453,000 | ||||||||||||
Balance at Dec. 31, 2013 | 8,000,000 | 58,000 | 55,303,000 | 2,922,000 | 26,000 | -70,000 | 66,239,000 | |||||||
Balance (in shares) at Dec. 31, 2013 | 5,804,703 | 5,804,703 | ||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Sale of common stock | 6,000 | 31,000 | 5,432,000 | 35,760,000 | 5,438,000 | 35,791,000 | ||||||||
Sale of common stock (in shares) | 508,047 | 3,105,000 | ||||||||||||
Preferred stock dividend Series C | -80,000 | -80,000 | ||||||||||||
Sale and finance of stock to ESOP | 500,000 | -500,000 | 500,000 | |||||||||||
Sale and finance of stock to ESOP (in shares) | 46,082 | |||||||||||||
ESOP shares allocated | 19,000 | 99,000 | 118,000 | |||||||||||
Issuance of shares to Directors related to vesting of restricted stock units | 7,000 | |||||||||||||
Stock based compensation | 455,000 | 455,000 | ||||||||||||
Net income | 5,205,000 | 5,205,000 | ||||||||||||
Other comprehensive income (loss) | 146,000 | 146,000 | ||||||||||||
Balance at Dec. 31, 2014 | $8,000,000 | $95,000 | $97,469,000 | $8,047,000 | $172,000 | ($401,000) | ($70,000) | $113,312,000 | ||||||
Balance (in shares) at Dec. 31, 2014 | 9,470,832 | 9,470,832 |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Initial public offering | |
Offering costs | $4,574 |
Private offering | |
Offering costs | $61 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income | $5,205 | $3,408 | $1,479 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 1,339 | 1,266 | 1,059 |
Provision for loan losses | 1,423 | 1,883 | 2,953 |
Accretion of loan purchase discount | -483 | -404 | -1,150 |
Stock based compensation expense | 455 | 323 | 255 |
Amortization of other intangible assets | 14 | 14 | 13 |
Net amortization of premiums on investment securities | 400 | 371 | 445 |
Change in cash surrender value of bank-owned life insurance | -341 | -323 | -152 |
Net gain on sales of investment securities | -34 | ||
Gain on sales of loans held for sale | -641 | -632 | -248 |
Net gain on sales of other real estate owned | -10 | -20 | -61 |
Writedowns of other real estate owned | 249 | 48 | |
Net originations of loans held for sale | -45,441 | -35,895 | -16,606 |
Proceeds from sales of loans held for sale | 39,275 | 37,294 | 14,036 |
Decrease (increase) in accrued interest receivable and other assets | 712 | -2,076 | -338 |
Increase (decrease) in accrued expenses and other liabilities | 360 | 683 | -100 |
Net cash provided by operating activities | 2,233 | 6,141 | 1,633 |
Cash flows from investing activities: | |||
Purchases of securities available for sale | -310,983 | -146,787 | -242,462 |
Sales of securities available for sale | 300,981 | 120,000 | 239,997 |
Proceeds from maturities, calls and pay downs of investment securities | 10,334 | 9,664 | 15,401 |
Purchases of non-marketable equity securities, net | -1,425 | -125 | -1,554 |
Net loans originated | -109,175 | -98,513 | -102,640 |
Purchases of bank-owned life insurance | -7,006 | -5,000 | -5,000 |
Net additions to bank premises and equipment | -2,243 | -576 | -909 |
Proceeds from sales of other real estate owned | 2,817 | 1,566 | 1,462 |
Net cash used in investing activities | -116,700 | -119,771 | -95,705 |
Cash flows from financing activities: | |||
Net change in deposits | 64,805 | 126,036 | 83,144 |
Net increase in advances from Federal Home Loan Bank | 25,000 | 5,000 | |
Issuance of subordinated notes | 5,000 | ||
Purchase of common stock held in treasury | -70 | ||
Dividends paid on preferred stock | -80 | -60 | -100 |
Proceeds from payments on ESOP Loan | 118 | ||
Proceeds from issuance of common stock in Initial Public Offering, net of offering cost of $4,574 | 35,791 | ||
Proceeds from issuance of common stock, net offering cost of $61 for the year ended December 31, 2014 | 5,438 | 1,210 | 1,398 |
Net cash provided by financing activities | 131,072 | 137,116 | 84,442 |
Net increase (decrease) in cash and cash equivalents | 16,605 | 23,486 | -9,630 |
Cash and cash equivalents at beginning of year | 76,646 | 53,160 | 62,790 |
Cash and cash equivalents at end of period | 93,251 | 76,646 | 53,160 |
Supplemental Disclosures of Cash Flow Information: | |||
Cash paid for interest | 2,927 | 2,470 | 2,300 |
Cash paid for income taxes | 2,750 | 2,475 | 900 |
Supplemental Disclosures of Non Cash Flow Information: | |||
Sale and finance of stock to ESOP | 500 | ||
Net foreclosure of other real estate owned | $1,115 | $1,154 | $3,158 |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (Parenthetical) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Initial public offering | |
Offering costs | $4,574 |
Private offering | |
Offering costs | $61 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Summary of Significant Accounting Policies | |||||||||||
Summary of Significant Accounting Policies | |||||||||||
1. Summary of Significant Accounting Policies | |||||||||||
Nature of Organization | |||||||||||
Veritex Holdings, Inc. (Veritex), a Texas corporation and bank holding company, was incorporated in July 2009 and was formed for the purpose of acquiring one or more financial institutions located in Dallas, Texas and surrounding areas. | |||||||||||
Veritex through its wholly-owned subsidiary, Veritex Community Bank (Bank), a Texas state banking organization,with corporate offices in Dallas, Texas, currently operates eight branches and one mortgage office located throughout the greater Dallas, Texas metropolitan area. The Bank provides a full range of banking services to individual and corporate customers, which include commercial and retail lending, and the acceptance of checking and savings deposits. The Texas Department of Banking and the Federal Reserve are the primary regulators of the Company, which undergoes periodic examinations by those regulatory authorities. | |||||||||||
Basis of Presentation | |||||||||||
The accompanying consolidated financial statements include the accounts of Veritex and its wholly-owned subsidiary, Veritex Community Bank, formerly known as Veritex Community Bank, National Association. | |||||||||||
The accounting principles followed by the Company and the methods of applying them are in conformity with U.S. generally accepted accounting principles and prevailing practices of the banking industry. | |||||||||||
All material intercompany transactions have been eliminated in consolidation. | |||||||||||
Accounting standards codification: | |||||||||||
The Financial Accounting Standards Board's (FASB) Accounting Standards Codification (ASC) is the officially recognized source of authoritative U.S. generally accepted accounting principles (GAAP) applicable to all public and non-public non-governmental entities. Rules and interpretive releases of the SEC under the authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. All other accounting literature is considered non-authoritative. Citing particular content in the ASC involves specifying the unique numeric path to the content through the Topic, Subtopic, Section and Paragraph structure. | |||||||||||
Segment Reporting: | |||||||||||
The Company has one reportable segment. The Company's chief operating decision-maker, the CEO, uses consolidated results to make operating and strategic decisions. | |||||||||||
Initial Public Offering (IPO): | |||||||||||
The Company qualifies as an "emerging growth company" as defined by the Jumpstart Our Business Startups Act (JOBS Act). In Q2 2014, the Board of Directors of the Company approved a resolution for Veritex to sell shares of common stock to the public in an initial public offering. On July 22, 2014, the Company submitted a confidential draft Registration Statement on Form S-1 with the SEC with respect to the shares to be registered and sold. On August 29, 2014, the Company filed a Registration Statement on Form S-1 with the SEC. That Registration Statement was declared effective by the SEC on October 8, 2014. The Company sold and issued 3,105,000 shares of common stock at $13 per share in reliance on that Registration Statement. Total proceeds received by the Company, net of offering costs were approximately $36 million. | |||||||||||
In connection with the initial public offering, on September 22, 2014, the Company amended its certificate of formation to authorize the issuance of up to 75,000,000 shares of common stock, par value $0.01 per share, and 10,000,000 shares of preferred stock, par value $1.00 per share, of which 8,000 shares are designated as Series C preferred stock. The authorized but unissued shares of capital stock are available for future issuance without shareholder approval, unless otherwise required by applicable law or the rules of any applicable securities exchange. | |||||||||||
Use of Estimates | |||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Actual results could differ from those estimates. The allowance for loan losses, the fair values of financial instruments, including investment securities available for sale and loans held for sale, and the status of contingencies are particularly susceptible to significant change in the near term. | |||||||||||
Cash and Cash Equivalents | |||||||||||
For the purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks and federal funds sold. | |||||||||||
The Bank maintains deposits with other financial institutions in amounts that exceed federal deposit insurance coverage. Furthermore, federal funds sold are essentially uncollateralized loans to other financial institutions. Management regularly evaluates the credit risk associated with the counterparties to these transactions and believes that the Company is not exposed to any significant credit risks on cash and cash equivalents. | |||||||||||
Restrictions on cash | |||||||||||
The Bank is required to maintain regulatory reserve balances with the Federal Reserve Bank. The reserve balances required as of December 31, 2014 and 2013 were approximately $23,365 and $15,325, respectively. | |||||||||||
Investment Securities | |||||||||||
Securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them until maturity. Securities to be held for indefinite periods of time are classified as available for sale and carried at fair value, with the unrealized holding gains and losses reported in other comprehensive income, net of tax. Management determines the appropriate classification of securities at the time of purchase. | |||||||||||
Interest income includes amortization of purchase premiums and discounts. Realized gains and losses are derived from the amortized cost of the security sold. Credit related declines in the fair value of available for sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses, with the remaining unrealized loss recognized as a component of other comprehensive income. In estimating other-than-temporary impairment losses, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, and (iii) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. | |||||||||||
Loans Held for Sale | |||||||||||
Loans held for sale consist of certain mortgage loans originated and intended for sale in the secondary market and are carried at the lower of cost or estimated fair value on an individual loan basis. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. The Company obtains commitments to purchase the loans from the secondary market investors prior to closing of the loans. Loans held for sale are sold with servicing released. Gains and losses on sales of loans held for sale are based on the difference between the selling price and the carrying value of the related loan sold. | |||||||||||
Loans and Allowance for Loan Losses | |||||||||||
Loans, excluding certain purchased loans which have shown evidence of deterioration since origination as of the date of the acquisition, that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are stated at the amount of unpaid principal, reduced by fees associated with the originating of loans and an allowance for loan losses. Interest on loans is recognized using the effective-interest method on the daily balances of the principal amounts outstanding. Fees associated with the originating of loans and certain direct loan origination costs are netted and the net amount is deferred and recognized over the life of the loan as an adjustment of yield. | |||||||||||
The accrual of interest on loans is discontinued when there is a clear indication that the borrower's cash flow may not be sufficient to meet payments as they become due, which is generally no later than when a loan is 90 days past due. When a loan is placed on non-accrual status, all previously accrued and unpaid interest is reversed. Interest income is subsequently recognized on a cash basis as long as the remaining book balance of the asset is deemed to be collectible. If collectability is questionable, then cash payments are applied to principal. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured in accordance with the terms of the loan agreement. | |||||||||||
The allowance for loan losses is an estimated amount management believes is adequate to absorb inherent losses on existing loans that may be uncollectible based upon review and evaluation of the loan portfolio. Management's periodic evaluation of the allowance is based on general economic conditions, the financial condition of borrowers, the value and liquidity of collateral, delinquency, prior loan loss experience, and the results of periodic reviews of the portfolio. The allowance for loan losses is comprised of two components: the general reserve and specific reserves. The general reserve is determined in accordance with current authoritative accounting guidance that considers historical loss rates for the last three years adjusted for qualitative factors based upon general economic conditions and other qualitative risk factors both internal and external to the Company. Such qualitative factors include current local economic conditions and trends including unemployment, changes in lending staff, policies and procedures, changes in credit concentrations, changes in the trends and severity of problem loans and changes in trends in volume and terms of loans. These qualitative factors serve to compensate for additional areas of uncertainty inherent in the portfolio that are not reflected in the Company's historic loss factors. For purposes of determining the general reserve, the loan portfolio, less cash secured loans, government guaranteed loans and impaired loans, is multiplied by the Company's adjusted historical loss rate. Specific reserves are determined in accordance with current authoritative accounting guidance based on probable losses on specific classified loans. | |||||||||||
The allowance for loan losses is increased by charges against income and decreased by charge-offs (net of recoveries). | |||||||||||
Due to the growth of the Bank over the past several years, a portion of the loans in its portfolio and its lending relationships are of relatively recent origin. The new loan portfolios have limited delinquency and credit loss history and have not yet exhibited an observable loss trend. The credit quality of loans in theses loan portfolios are impacted by delinquency status and debt service coverage generated by the borrowers' business and fluctuations in the value of real estate collateral. Management considers delinquency status to be the most meaningful indicator of the credit quality of one-to-four single family residential, home equity loans and lines of credit and other consumer loans. In general, loans do not begin to show signs of credit deterioration or default until they have been outstanding for some period of time, a process we refer to as "seasoning." As a result, a portfolio of older loans will usually behave more predictably than a portfolio of newer loans. Because the majority of the portfolio is relatively new, the current level of delinquencies and defaults may not be representative of the level that will prevail when the portfolio becomes more seasoned, which may be higher than current levels. | |||||||||||
Delinquency statistics are updated at least monthly. Internal risk ratings are considered the most meaningful indicator of credit quality for new commercial, construction, and commercial real estate loans. Internal risk ratings are a key factor in identifying loans that are individually evaluated for impairment and impact management's estimates of loss factors used in determining the amount of the allowance for loan losses. Internal risk ratings are updated on a continuous basis. | |||||||||||
Loans are considered impaired when, based on current information and events, it is probable the Company will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. If a loan is impaired, a specific valuation allowance is allocated, if necessary. Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. Impaired loans, or portions thereof, are charged off when deemed uncollectible. | |||||||||||
The Company's policy requires measurement of the allowance for an impaired collateral dependent loan based on the fair value of the collateral. Other loan impairments are measured based on the present value of expected future cash flows or the loan's observable market price. At December 31, 2014 and 2013, all significant impaired loans have been determined to be collateral dependent and the allowance for loss has been measured utilizing the estimated fair value of the collateral. | |||||||||||
From time to time, the Company modifies its loan agreement with a borrower. A modified loan is considered a troubled debt restructuring when two conditions are met: (i) the borrower is experiencing financial difficulty and (ii) concessions are made by the Company that would not otherwise be considered for a borrower with similar credit risk characteristics. Modifications to loan terms may include a lower interest rate, a reduction of principal, or a longer term to maturity. All troubled debt restructurings are considered impaired loans. The Company reviews each troubled debt restructured loan and determines on a case by case basis if a specific allowance for loan loss is required. An allowance for loan loss allocation is based on either the present value of estimated future cash flows or the estimated fair value of the underlying collateral. | |||||||||||
The Company has certain lending policies and procedures in place that are designed to maximize loan income with an acceptable level of risk. Management reviews and approves these policies and procedures on a regular basis and makes changes as appropriate. Management receives frequent reports related to loan originations, quality, concentrations, delinquencies, non-performing and potential problem loans. Diversification in the loan portfolio is a means of managing risk associated with fluctuations in economic conditions, both by type of loan and geography. | |||||||||||
Commercial loans are underwritten after evaluating and understanding the borrower's ability to operate profitably and effectively. Underwriting standards are designed to determine whether the borrower possesses sound business ethics and practices and to evaluate current and projected cash flows to determine the ability of the borrower to repay their obligations as agreed. Commercial loans are primarily made based on the identified cash flows of the borrower and, secondarily, on the underlying collateral provided by the borrower. Most commercial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory, and include personal guarantees. | |||||||||||
Real estate loans are also subject to underwriting standards and processes similar to commercial loans. These loans are underwritten primarily based on projected cash flows and, secondarily, as loans secured by real estate. The repayment of real estate loans is generally largely dependent on the successful operation of the property securing the loans or the business conducted on the property securing the loan. Real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company's real estate portfolio are generally diverse in terms of type and geographic location, through the Dallas metropolitan area. This diversity helps reduce the exposure to adverse economic events that affect any single market or industry. | |||||||||||
The Company utilizes methodical credit standards and analysis to supplement its policies and procedures in underwriting consumer loans. The Company's loan policy addresses types of consumer loans that may be originated and the collateral, if secured, which must be perfected. The relatively smaller individual dollar amounts of consumer loans that are spread over numerous individual borrowers also minimizes the Company's risk. | |||||||||||
Certain Acquired Loans | |||||||||||
As part of business acquisitions, the Company evaluated each of the acquired loans under ASC 310-30 to determine whether (i) there was evidence of credit deterioration since origination, and (ii) it was probable that the Company would not collect all contractually required payments receivable. The Company determined the best indicator of such evidence was an individual loan's payment status and/or whether a loan was determined to be classified based on a review of each individual loan. Therefore, generally each individual loan that should have been or was on non-accrual at the acquisition date and each individual loan that was deemed impaired were included subject to ASC 310-30 accounting. These loans were recorded at the discounted expected cash flows of the individual loan. | |||||||||||
Loans which were evaluated under ASC 310-30, and where the timing and amount of cash flows can be reasonably estimated, were accounted for in accordance with ASC 310-30-35. The Company applies the interest method for these loans under this subtopic and the loans are excluded from non- accrual. If, at acquisition, the Company identified loans that they could not reasonably estimate cash flows or, if subsequent to acquisition, such cash flows could not be estimated, such loans would be included in non-accrual. These acquired loans are recorded at the allocated fair value, such that there is no carryover of the seller's allowance for loan losses. Such acquired loans are accounted for individually. The Company estimates the amount and timing of expected cash flows for each purchased loan, and the expected cash flows in excess of the allocated fair value is recorded as interest income over the remaining life of the loan (accretable yield). The excess of the loan's contractual principal and interest over expected cash flows is not recorded (non-accretable difference). Over the life of the loan, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded through the allowance for loan losses. If the present value of expected cash flows is greater than the carrying amount, any related allowance for loan loss is reversed, with the remaining yield being recognized prospectively through interest income. | |||||||||||
Transfers of Financial Assets | |||||||||||
Transfers of financial assets (generally consisting of sales of loans held for sale and loan participations with unaffiliated banks) are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. | |||||||||||
Bank Premises and Equipment | |||||||||||
Buildings and improvements, furniture and equipment are carried at cost less accumulated depreciation computed using the straight-line method over the estimated useful lives of the respective assets as follows: | |||||||||||
Buildings and improvements | 10 - 40 years | ||||||||||
Leasehold improvements | Term of lease | ||||||||||
Furniture and equipment | 3 - 10 years | ||||||||||
Major replacements and betterments are capitalized while maintenance and repairs are charged to expense when incurred. Gains or losses on dispositions are reflected in operations as incurred. | |||||||||||
Non-Marketable Equity Securities | |||||||||||
The Bank is a member of its regional Federal Reserve Bank (FRB) and of the Federal Home Loan Bank system (FHLB). FHLB members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. Both FRB and FHLB stock are carried at cost, restricted for sale, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. Other non-marketable equity securities are carried at cost which approximates fair value. | |||||||||||
Other Real Estate Owned | |||||||||||
Other real estate owned represents properties acquired through or in lieu of loan foreclosure and are initially recorded at fair value less estimated costs to sell. At foreclosure, if the fair value, less estimated costs to sell, of the real estate acquired is less than the Bank's recorded investment in the related loan, a write-down is recognized through a charge to the allowance for loan losses. Any subsequent reduction in value is recognized by a charge to income. Operating and holding expenses of such properties, net of related income, and gains and losses on their disposition are included in noninterest expense. | |||||||||||
Bank-Owned Life Insurance | |||||||||||
The Company has purchased life insurance policies on certain employees. These bank-owned life insurance (BOLI) policies are recorded in the accompanying consolidated balance sheets at their cash surrender values. Income from these policies and changes in the cash surrender values are recorded in other income in the accompanying consolidated statements of income. | |||||||||||
Goodwill and Intangible Assets | |||||||||||
Goodwill resulting from a business combination represents the excess of the fair value of the consideration transferred over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill is not amortized but is reviewed for potential impairment annually on December 31 or when a triggering event occurs. The Company's goodwill test involves a two-step process. Under the first step, the estimation of fair value of the reporting unit is compared to its carrying value including goodwill. If step one indicates a potential impairment, the second step is performed to measure the amount of impairment, if any. If the carrying amount of the reporting goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. Any such adjustments are reflected in the results of operations in the periods in which they become known. Intangible assets consist of core deposit intangibles and other intangible assets related to operating leases with favorable market terms acquired in business combinations. Intangible assets are initially recognized based on a valuation performed as of the acquisition date. Core deposit intangibles are being amortized on a straight-line basis over the estimated useful lives of seven to nine years. Intangible assets related to operating leases are amortized over the remaining life of the acquired lease using the straight-line method. All indefinite lived intangible assets are tested annually for potential impairment or when triggering events occur. Intangible assets with definite lives are tested for impairment when a triggering event occurs. No impairment charges were recorded during the years ended December 31, 2014, 2013 and 2012. | |||||||||||
Advertising | |||||||||||
Advertising consists of the Company's advertising in its local market. Advertising is expensed as incurred. | |||||||||||
Income Taxes | |||||||||||
The Company files a consolidated income tax return with its subsidiary. Federal income tax expense or benefit is allocated on a separate return basis. | |||||||||||
The Company accounts for income taxes using the asset and liability approach for financial accounting and reporting. Deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Realization of deferred tax assets is dependent upon the generation of a sufficient level of future taxable income and recoverable taxes paid in prior years. | |||||||||||
The Company may recognize the tax benefit of an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements would be the benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. For the years ended December 31, 2014 and 2013, management has determined there are no material uncertain tax positions. | |||||||||||
When necessary, the Company would include interest assessed by taxing authorities in "Interest expense" and penalties related to income taxes in "Other expense" on its consolidated statements of income. The Company did not record any interest or penalties related to income tax for the years ended December 31, 2014 and 2013. With few exeptions, the Company is no longer subject to U.S. federal income tax examinations by tax authorities for the years before 2011. | |||||||||||
Fair Values of Financial Instruments | |||||||||||
Fair values of financial instruments are estimated using relevant market information and other assumptions. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. The fair value estimates of existing on and off-balance sheet financial instruments do not include the value of anticipated future business or the value of assets and liabilities not considered financial instruments. | |||||||||||
Stock Based Compensation | |||||||||||
Compensation cost is recognized for stock options and stock awards issued to employees and directors, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company's common stock at the date of grant is used for stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. | |||||||||||
Treasury Stock | |||||||||||
Treasury stock is stated at cost, which is determined by the first-in, first-out method. | |||||||||||
Comprehensive Income | |||||||||||
Comprehensive income includes all changes in stockholders' equity during a period, except those resulting from transactions with stockholders. In addition to net income, comprehensive income includes the net effect of changes in the fair value of securities available for sale, net of tax. Comprehensive income is reported in the accompanying consolidated statements of comprehensive income. | |||||||||||
ESOP | |||||||||||
Effective January 1, 2012, the Company adopted an Employee Stock Ownership Plan (ESOP) covering all employees that meet certain age and service requirements. Plan assets are held and managed by the Company. Shares of the Company's common stock purchased by the Veritex Community Bank Employee Stock Ownership Plan (ESOP) are held in a suspense account until released for allocation to participants. Shares released are allocated to each eligible participant based on the participant's 401(k) contribution made during that year. Compensation expense is measured based upon the expected amount of the Company's discretionary contribution which is determined on an annual basis and is accrued ratably over the year. Shares are committed to be released to settle the liability upon formal declaration of the contribution at the end of the year. The number of shares released to settle the liability is based upon fair value of the shares as of the end of the year and become outstanding shares for earnings per share computations. The cost of shares issued to the ESOP, but not yet committed to be released, is shown as a reduction of stockholders' equity. To the extent that the fair value of the ESOP shares differs from the cost of such shares, the difference is charged or credited to stockholders' equity as additional paid in capital. Shares become outstanding for earnings per share computations upon allocation. Dividends on allocated ESOP shares are charged to retained earnings and paid to participants of the ESOP. | |||||||||||
Earnings Per Share | |||||||||||
Earnings per share (EPS) are based upon the weighted-average shares outstanding. The table below sets forth the reconciliation between weighted average shares used for calculating basic and diluted EPS for the years ended December 31, 2014, 2013 and 2012: | |||||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Earnings (numerator) | |||||||||||
Net income for common stockholders | $ | 5,205 | $ | 3,408 | $ | 1,479 | |||||
Less: preferred stock dividends | 80 | 60 | 100 | ||||||||
| | | | | | | | | | | |
Net income allocated to common stockholders | $ | 5,125 | $ | 3,348 | $ | 1,379 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Shares (denominator) | |||||||||||
Weighted average shares outstanding for basic EPS (thousands) | 6,992 | 5,788 | 5,641 | ||||||||
Dilutive effect of employee stock-based awards | 161 | 61 | 37 | ||||||||
| | | | | | | | | | | |
Adjusted weighted average shares outstanding | 7,153 | 5,849 | 5,678 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Earnings per share: | |||||||||||
Basic | $ | 0.73 | $ | 0.58 | $ | 0.24 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Diluted | $ | 0.72 | $ | 0.57 | $ | 0.24 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
For the years ended December 31, 2013 and 2012, the Company excluded from diluted EPS weighted average shares of performance stock options representing the right to purchase 423,000 and 419,000 shares, respectively, of the Company's common stock because the issuance of shares related to these options is contingent upon the satisfaction of certain conditions unrelated to earnings or market value and these conditions were not met. In addition, for the year ended December 31, 2013, the Company excluded from diluted EPS weighted average warrants representing the right to purchase 1,000 shares of the Company's common stock because the effect was anti-dilutive. | |||||||||||
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2014 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | |
2. Recent Accounting Pronouncements | |
ASU 2014-04 "Receivables (Topic 310)—Troubled Debt Restructurings by Creditors" ("ASU 2014-04") amends Topic 310 "Receivables" to clarify the terms defining when an in substance repossession or foreclosure occurs, which determines when the receivable should be derecognized and the real estate property is recognized. ASU 2013-04 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2014. The Company is in process of evaluating impact of this pronouncement, however it is not expected to have a significant impact on the consolidated financial statements. | |
ASU 2014-09 "Revenue from Contracts with Customers (Topic 606)" ("ASU 2014-09") implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 establishes a five-step model which entities must follow to recognize revenue and removes inconsistencies and weaknesses in existing guidance. ASU 2014-09 is effective for annual and interim periods beginning after December 15, 2016. The Company is in process of evaluating impact of this pronouncement, however it is not expected to have a significant impact on the consolidated financial statements. | |
ASU 2014-11 "Transfers and Servicing (Topic 860" ("ASU 2014-11") requires that repurchase-to-maturity transactions be accounted for as secured borrowings consistent with the accounting for other repurchase agreements. The amendments to ASU 2014-11 update the accounting for repurchase-to-maturity transactions and link repurchase financings to secured borrowing accounting, which is consistent with the accounting for other repurchase agreements. ASU 2014-11 also requires two new disclosures. The first disclosure requires an entity to disclose information on transfers accounted for as sales that are economically similar to repurchase agreements. The second disclosure provides added transparency about the types of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings. ASU 2014-11 is effective for annual and interim periods beginning after December 15, 2014. The Company is in process of evaluating impact of this pronouncement, however it is not expected to have a significant impact on the consolidated financial statements. | |
ASU 2014-12 "Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period" ("ASU 2014-12") requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. ASU 2014-12 is intended to resolve the diverse accounting treatments of these types of awards in practice and is effective for annual and interim periods beginning after December 15, 2015. The Company is in process of evaluating impact of this pronouncement, however it is not expected to have a significant impact on the consolidated financial statements. | |
Investment_Securities
Investment Securities | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Investment Securities | ||||||||||||||||||||
Investment Securities | ||||||||||||||||||||
3. Investment Securities | ||||||||||||||||||||
Debt and equity securities have been classified in the consolidated balance sheets according to management's intent. The carrying amount of securities and their approximate fair values are as follows: | ||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||
Gains | Losses | |||||||||||||||||||
Available for Sale | ||||||||||||||||||||
U.S. government agencies | $ | 1,928 | $ | — | $ | 47 | $ | 1,881 | ||||||||||||
Corporate bonds | 500 | — | — | 500 | ||||||||||||||||
Municipal securities | 965 | 22 | — | 987 | ||||||||||||||||
Mortgage-backed securities | 28,588 | 256 | 73 | 28,771 | ||||||||||||||||
Collateralized mortgage obligations | 11,752 | 124 | 37 | 11,839 | ||||||||||||||||
Asset-backed securities | 1,134 | 15 | — | 1,149 | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
$ | 44,867 | $ | 417 | $ | 157 | $ | 45,127 | |||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
December 31, 2013 | ||||||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||
Gains | Losses | |||||||||||||||||||
Available for Sale | ||||||||||||||||||||
U.S. government agencies | $ | 2,019 | $ | — | $ | 95 | $ | 1,924 | ||||||||||||
Corporate bonds | 1,445 | 35 | — | 1,480 | ||||||||||||||||
Municipal securities | 934 | 24 | — | 958 | ||||||||||||||||
Mortgage-backed securities | 24,898 | 220 | 187 | 24,931 | ||||||||||||||||
Collateralized mortgage obligations | 14,898 | 158 | 141 | 14,915 | ||||||||||||||||
Asset-backed securities | 1,370 | 26 | — | 1,396 | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
$ | 45,564 | $ | 463 | $ | 423 | $ | 45,604 | |||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
The following tables disclose the Company's investment securities that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 or more months: | ||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Totals | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
Value | Loss | Value | Loss | Value | Loss | |||||||||||||||
Available for Sale | ||||||||||||||||||||
U.S. government agencies | $ | — | $ | — | $ | 1,881 | $ | 47 | $ | 1,881 | $ | 47 | ||||||||
Mortgage-backed securities | 10,148 | 39 | 3,572 | 34 | 13,720 | 73 | ||||||||||||||
Collateralized mortgage obligations | 1,580 | 7 | 2,442 | 30 | 4,022 | 37 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
$ | 11,728 | $ | 46 | $ | 7,895 | $ | 111 | $ | 19,623 | $ | 157 | |||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
December 31, 2013 | ||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Totals | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
Value | Loss | Value | Loss | Value | Loss | |||||||||||||||
Available for Sale | ||||||||||||||||||||
U.S. government agencies | $ | 1,924 | $ | 95 | $ | — | $ | — | $ | 1,924 | $ | 95 | ||||||||
Mortgage-backed securities | 10,612 | 187 | — | — | 10,612 | 187 | ||||||||||||||
Collateralized mortgage obligations | 10,222 | 140 | 46 | 1 | 10,268 | 141 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
$ | 22,758 | $ | 422 | $ | 46 | $ | 1 | $ | 22,804 | $ | 423 | |||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
The number of investment positions in an unrealized loss position totaled 23 at December 31, 2014. The Company does not believe these unrealized losses are "other than temporary" as (i) the Company does not have the intent to sell investment securities prior to recovery and (ii) it is more likely than not that the Company will not have to sell these securities prior to recovery. The unrealized losses noted are interest rate related due to the level of interest rates at December 31, 2014. The Company has reviewed the ratings of the issuers and has not identified any issues related to the ultimate repayment of principal as a result of credit concerns on these securities. | ||||||||||||||||||||
The amortized costs and estimated fair values of securities available for sale, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayments penalties. Mortgage-backed securities, collateralized mortgage obligations, and asset-backed securities typically are issued with stated principal amounts, and the securities are backed by pools of mortgage loans and other loans that have varying maturities. The term of mortgage-backed, collateralized mortgage obligations and asset-backed securities thus approximates the term of the underlying mortgages and loans and can vary significantly due to prepayments. Therefore, these securities are not included in the maturity categories below. | ||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||
Available For Sale | ||||||||||||||||||||
Amortized | Fair | |||||||||||||||||||
Cost | Value | |||||||||||||||||||
Due in one year or less | $ | 500 | $ | 500 | ||||||||||||||||
Due from one year to five years | 1,930 | 1,932 | ||||||||||||||||||
Due from five years to ten years | 963 | 936 | ||||||||||||||||||
Due after ten years | — | — | ||||||||||||||||||
| | | | | | | | |||||||||||||
3,393 | 3,368 | |||||||||||||||||||
Mortgage-backed securities | 28,588 | 28,771 | ||||||||||||||||||
Collateralized mortgage obligations | 11,752 | 11,839 | ||||||||||||||||||
Asset-backed securities | 1,134 | 1,149 | ||||||||||||||||||
| | | | | | | | |||||||||||||
$ | 44,867 | $ | 45,127 | |||||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
Proceeds from sales of investment securities available for sale and gross gains and losses for the years ended December 31, 2014 and 2013 were as follows: | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Proceeds from sales | $ | 300,981 | $ | 120,000 | $ | 239,997 | ||||||||||||||
Gross realized gains | 34 | — | — | |||||||||||||||||
Gross realized losses | — | — | — | |||||||||||||||||
The majority of the investment securities sold during the years ended 2014, 2013, and 2012 were sold for tax planning purposes. | ||||||||||||||||||||
As further explained in Note 10, there was a blanket floating lien on all securities to secure Federal Home Loan Bank advances as of December 31, 2014 and 2013. | ||||||||||||||||||||
Loans_and_Allowance_for_Loan_L
Loans and Allowance for Loan Losses | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Loans and Allowance for Loan Losses | |||||||||||||||||||||||
Loans and Allowance for Loan Losses | |||||||||||||||||||||||
4. Loans and Allowance for Loan Losses | |||||||||||||||||||||||
Loans in the accompanying consolidated balance sheets are summarized as follows: | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction and land | $ | 69,966 | $ | 47,643 | |||||||||||||||||||
Farmland | 10,528 | 11,656 | |||||||||||||||||||||
1 - 4 family residential | 105,788 | 86,908 | |||||||||||||||||||||
Multi-family residential | 9,964 | 11,862 | |||||||||||||||||||||
Nonfarm nonresidential | 195,839 | 171,451 | |||||||||||||||||||||
Commercial | 207,101 | 160,823 | |||||||||||||||||||||
Consumer | 4,124 | 4,927 | |||||||||||||||||||||
| | | | | | | | ||||||||||||||||
603,310 | 495,270 | ||||||||||||||||||||||
| | | | | | | | ||||||||||||||||
Deferred loan fees | (51 | ) | (94 | ) | |||||||||||||||||||
Allowance for loan losses | (5,981 | ) | (5,018 | ) | |||||||||||||||||||
| | | | | | | | ||||||||||||||||
$ | 597,278 | $ | 490,158 | ||||||||||||||||||||
| | | | | | | | ||||||||||||||||
| | | | | | | | ||||||||||||||||
Included in the net loan portfolio as of December 31, 2014 and 2013 is an accretable discount related to loans acquired within a business combination in the approximate amounts of $185 and $667, respectively. The discount is being accreted into income using the interest method over the life of the loans. | |||||||||||||||||||||||
As of December 31, 2014, the Company had total commercial real estate loans (CRE) representing 246% of total risk-based capital. Included in these amounts, the Company had construction, land development, and other land loans representing 88% of total risk-based capital at December 31, 2014. Sound risk management practices and appropriate levels of capital are essential elements of a sound commercial real estate lending program. Concentrations of CRE exposures add a dimension of risk that compounds the risk inherent in individual loans. Interagency guidance on CRE concentrations describes sound risk management practices, which include board and management oversight, portfolio management, management information systems, market analysis, portfolio stress testing and sensitivity analysis, credit underwriting standards, and credit risk review functions. Management believes it has implemented these practices in order to monitor its CRE lending program. An institution which has reported loans for construction, land development, and other land loans representing 100% or more of total risk-based capital, or total non-owner occupied commercial real estate loans representing 300% or more of the institution's total risk-based capital and the outstanding balance of commercial real estate loan portfolio has increased by 50% or more during the prior 36 months, may be identified for further supervisory analysis by regulators to assess the nature and risk posed by the concentration. | |||||||||||||||||||||||
The majority of the loan portfolio is comprised of loans to businesses and individuals in the Dallas metropolitan area. This geographic concentration subjects the loan portfolio to the general economic conditions within this area. The risks created by this concentration have been considered by management in the determination of the adequacy of the allowance for loan losses. Management believes the allowance for loan losses was adequate to cover estimated losses on loans as of December 31, 2014 and 2013. | |||||||||||||||||||||||
Non-Accrual and Past Due Loans | |||||||||||||||||||||||
Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are placed on non-accrual status when, in management's opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. Loans may be placed on non-accrual status regardless of whether or not such loans are considered past due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. | |||||||||||||||||||||||
Non-accrual loans, excluding purchased credit impaired loans, aggregated by class of loans are as follows: | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction and land | $ | — | $ | 76 | |||||||||||||||||||
Farmland | — | — | |||||||||||||||||||||
1 - 4 family residential | — | 1,041 | |||||||||||||||||||||
Multi-family residential | — | — | |||||||||||||||||||||
Nonfarm nonresidential | 375 | — | |||||||||||||||||||||
Commercial | 34 | — | |||||||||||||||||||||
Consumer | 27 | — | |||||||||||||||||||||
| | | | | | | | ||||||||||||||||
$ | 436 | $ | 1,117 | ||||||||||||||||||||
| | | | | | | | ||||||||||||||||
| | | | | | | | ||||||||||||||||
During the years ended December 31, 2014 and 2013, interest income not recognized on non-accrual loans was minimal. | |||||||||||||||||||||||
An age analysis of past due loans, aggregated by class of loans, as of December 31, 2014 and 2013 is as follows: | |||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||
30 to 59 | 60 to 89 | 90 Days | Total | Total | Total | Total 90 Days | |||||||||||||||||
Days | Days | or Greater | Past Due | Current | Loans | Past Due | |||||||||||||||||
and Still | |||||||||||||||||||||||
Accruing | |||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction and land | $ | 12 | $ | — | $ | 541 | $ | 553 | $ | 69,413 | $ | 69,966 | $ | — | |||||||||
Farmland | — | — | — | — | 10,528 | 10,528 | — | ||||||||||||||||
1 - 4 family residential | 512 | — | — | 512 | 105,276 | 105,788 | — | ||||||||||||||||
Multi-family residential | — | — | — | — | 9,964 | 9,964 | — | ||||||||||||||||
Nonfarm nonresidential | — | 375 | — | 375 | 195,464 | 195,839 | — | ||||||||||||||||
Commercial | 6 | 34 | — | 40 | 207,061 | 207,101 | — | ||||||||||||||||
Consumer | 26 | — | — | 26 | 4,098 | 4,124 | — | ||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
$ | 556 | $ | 409 | $ | 541 | $ | 1,506 | $ | 601,804 | $ | 603,310 | $ | — | ||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
December 31, 2013 | |||||||||||||||||||||||
30 to 59 | 60 to 89 | 90 Days | Total | Total | Total | Total 90 Days | |||||||||||||||||
Days | Days | or Greater | Past Due | Current | Loans | Past Due | |||||||||||||||||
and Still | |||||||||||||||||||||||
Accruing | |||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction and land | $ | 19 | $ | — | $ | 645 | $ | 664 | $ | 46,979 | $ | 47,643 | $ | — | |||||||||
Farmland | — | — | — | — | 11,656 | 11,656 | — | ||||||||||||||||
1 - 4 family residential | 168 | — | 1,041 | 1,209 | 85,699 | 86,908 | — | ||||||||||||||||
Multi-family residential | — | — | — | — | 11,862 | 11,862 | — | ||||||||||||||||
Nonfarm nonresidential | — | — | — | — | 171,451 | 171,451 | — | ||||||||||||||||
Commercial | 94 | — | — | 94 | 160,729 | 160,823 | — | ||||||||||||||||
Consumer | 34 | 9 | 9 | 52 | 4,875 | 4,927 | 9 | ||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
$ | 315 | $ | 9 | $ | 1,695 | $ | 2,019 | $ | 493,251 | $ | 495,270 | $ | 9 | ||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Impaired Loans | |||||||||||||||||||||||
Impaired loans are those loans where it is probable the Company will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. All troubled debt restructurings (TDRs) are considered impaired loans. Impaired loans are measured based on either the present value of expected future cash flows discounted at the loan's effective interest rate; the loan's observable market price; or the fair value of the collateral if the loan is collateral dependent. Substantially all of the Company's impaired loans are measured at the fair value of the collateral. Impaired loans, or portions thereof, are charged off when deemed uncollectible. | |||||||||||||||||||||||
Impaired loans, including purchased credit impaired loans and troubled debt restructurings, at December 31, 2014 and 2013 are summarized in the following tables. | |||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||
Unpaid | Recorded | Recorded | Total | Related | Average | ||||||||||||||||||
Contractual | Investment | Investment | Recorded | Allowance | Recorded | ||||||||||||||||||
Principal | with No | With | Investment | Investment | |||||||||||||||||||
Balance | Allowance | Allowance | During Year | ||||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction and land | $ | 819 | $ | — | $ | 541 | $ | 541 | $ | 44 | $ | 611 | |||||||||||
Farmland | — | — | — | — | — | — | |||||||||||||||||
1 - 4 family residential | 168 | 168 | — | 168 | — | 205 | |||||||||||||||||
Multi-family residential | — | — | — | — | — | — | |||||||||||||||||
Nonfarm nonresidential | 1,086 | 1,086 | — | 1,086 | — | 980 | |||||||||||||||||
Commercial | 223 | 183 | 40 | 223 | 30 | 361 | |||||||||||||||||
Consumer | 38 | 8 | 30 | 38 | 13 | 44 | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
Total | $ | 2,334 | $ | 1,445 | $ | 611 | $ | 2,056 | $ | 87 | $ | 2,201 | |||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | | | | ||||
December 31, 2013 | |||||||||||||||||||||||
Unpaid | Recorded | Recorded | Total | Related | Average | ||||||||||||||||||
Contractual | Investment | Investment | Recorded | Allowance | Recorded | ||||||||||||||||||
Principal | with No | With | Investment | Investment | |||||||||||||||||||
Balance | Allowance | Allowance | During Year | ||||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction and land | $ | 971 | $ | 645 | $ | — | $ | 645 | $ | — | $ | 871 | |||||||||||
Farmland | — | — | — | — | — | — | |||||||||||||||||
1 - 4 family residential | 1,212 | 1,212 | — | 1,212 | — | 1,306 | |||||||||||||||||
Multi-family residential | — | — | — | — | — | — | |||||||||||||||||
Nonfarm nonresidential | 1,900 | 1,900 | — | 1,900 | — | 1,462 | |||||||||||||||||
Commercial | 366 | 366 | — | 366 | — | 366 | |||||||||||||||||
Consumer | 32 | 32 | — | 32 | — | 28 | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
Total | $ | 4,481 | $ | 4,155 | $ | — | $ | 4,155 | $ | — | $ | 4,033 | |||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | | | | ||||
Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. | |||||||||||||||||||||||
During the years ended December 31, 2014 and 2013, total interest income and cash-based interest income recognized on impaired loans was minimal. | |||||||||||||||||||||||
Troubled Debt Restructuring | |||||||||||||||||||||||
Modifications of terms for the Company's loans and their inclusion as troubled debt restructurings are based on individual facts and circumstances. Loan modifications that are included as troubled debt restructurings may involve a reduction of the stated interest rate of the loan, an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk, or deferral of principal payments, regardless of the period of the modification. The recorded investment in troubled debt restructurings was $1,677 and $4,078 as of December 31, 2014 and 2013. During the years ended December 31, 2014 and 2013, the terms of certain loans were modified as troubled debt restructurings as follows: | |||||||||||||||||||||||
2014 | |||||||||||||||||||||||
Post-Modification Outstanding Recorded Investment | |||||||||||||||||||||||
Number | Pre-Modification | Adjusted | Extended | Extended | Extended | ||||||||||||||||||
of Loans | Outstanding | Interest | Maturity | Maturity | Maturity, | ||||||||||||||||||
Recorded | Rate | and | Restructured | ||||||||||||||||||||
Investment | Restructured | Payments and | |||||||||||||||||||||
Payments | Adjusted | ||||||||||||||||||||||
Interest Rate | |||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Construction and land | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Farmland | — | — | — | — | — | — | |||||||||||||||||
1 - 4 family residential | — | — | — | — | — | — | |||||||||||||||||
Multi-family residential | — | — | — | — | — | — | |||||||||||||||||
Nonfarm nonresidential | — | — | — | — | — | — | |||||||||||||||||
Commercial | — | — | — | — | — | — | |||||||||||||||||
Consumer | 2 | 18 | 4 | 8 | — | — | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
Total | 2 | $ | 18 | $ | 4 | $ | 8 | $ | — | $ | — | ||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | | | | ||||
2013 | |||||||||||||||||||||||
Post-Modification Outstanding Recorded Investment | |||||||||||||||||||||||
Number | Pre-Modification | Adjusted | Extended | Extended | Extended | ||||||||||||||||||
of Loans | Outstanding | Interest | Maturity | Maturity | Maturity, | ||||||||||||||||||
Recorded | Rate | and | Restructured | ||||||||||||||||||||
Investment | Restructured | Payments and | |||||||||||||||||||||
Payments | Adjusted | ||||||||||||||||||||||
Interest Rate | |||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Construction and land | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Farmland | — | — | — | — | — | — | |||||||||||||||||
1 - 4 family residential | 2 | 1,203 | — | 1,051 | — | 171 | |||||||||||||||||
Multi-family residential | — | — | — | — | — | — | |||||||||||||||||
Nonfarm nonresidential | 1 | 1,180 | — | 1,180 | — | — | |||||||||||||||||
Commercial | 1 | 16 | — | — | 16 | — | |||||||||||||||||
Consumer | 1 | 6 | — | — | 6 | — | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
Total | 5 | $ | 2,405 | $ | — | $ | 2,231 | $ | 22 | $ | 171 | ||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | | | | ||||
All TDRs are measured individually for impairment. Of the two loans restructured during the year ended December 31, 2014, both are performing as agreed to the modified terms. A specific allowance for loan losses of $2 is recorded for one of the loans as of December 31, 2014. Neither of the two loans are on non-accrual status as of December 31, 2014. | |||||||||||||||||||||||
Of the five loans restructured during the year ended December 31, 2013, four are performing as agreed to the modified terms and one was on non-accrual status as of December 31, 2013. No specific allowance for loan losses is recorded for this loan as of December 31, 2013. | |||||||||||||||||||||||
Interest income recorded during 2014 and 2013 on the restructured loans and interest income that would have been recorded had the terms of the loan not been modified was immaterial. | |||||||||||||||||||||||
There were no loans modified as a troubled debt restructured loan within the previous 12 months and for which there was a payment default during the year ended December 31, 2014. There was one loan modified as a troubled debt restructured loan within the previous 12 months and for which there was a payment default during the year ended December 31, 2013. The loan was secured by real estate, and a portion of the collateral property was foreclosed upon subsequent to the default. A charge-off of approximately $85 was recorded against the allowance for loan losses. A default for purposes of this disclosure is a troubled debt restructured loan in which the borrower is 90 days past due or results in the foreclosure and repossession of the applicable collateral. | |||||||||||||||||||||||
The Company has not committed to lend additional amounts to customers with outstanding loans that were classified as TDRs as of December 31, 2014 or 2013. | |||||||||||||||||||||||
Credit Quality Indicators | |||||||||||||||||||||||
From a credit risk standpoint, the Company classifies its loans in one of four categories: (i) pass, (ii) special mention, (iii) substandard or (iv) doubtful. Loans classified as loss are charged-off. | |||||||||||||||||||||||
The classifications of loans reflect a judgment about the risks of default and loss associated with the loan. The Company reviews the ratings on criticized credits monthly. Ratings are adjusted to reflect the degree of risk and loss that is felt to be inherent in each credit as of each monthly reporting period. All classified credits are evaluated for impairments. If impairment is determined to exist, a specific reserve is established. The Company's methodology is structured so that specific reserves are increased in accordance with deterioration in credit quality (and a corresponding increase in risk and loss) or decreased in accordance with improvement in credit quality (and a corresponding decrease in risk and loss). | |||||||||||||||||||||||
Credits rated special mention show clear signs of financial weaknesses or deterioration in credit worthiness, however, such concerns are not so pronounced that the Company generally expects to experience significant loss within the short-term. Such credits typically maintain the ability to perform within standard credit terms and credit exposure is not as prominent as credits rated more harshly. | |||||||||||||||||||||||
Credits rated substandard are those in which the normal repayment of principal and interest may be, or has been, jeopardized by reason of adverse trends or developments of a financial, managerial, economic or political nature, or important weaknesses which exist in collateral. A protracted workout on these credits is a distinct possibility. Prompt corrective action is therefore required to strengthen the Company's position, and/or to reduce exposure and to assure that adequate remedial measures are taken by the borrower. Credit exposure becomes more likely in such credits and a serious evaluation of the secondary support to the credit is performed. | |||||||||||||||||||||||
Credits rated doubtful are those in which full collection of principal appears highly questionable, and which some degree of loss is anticipated, even though the ultimate amount of loss may not yet be certain and/or other factors exist which could affect collection of debt. Based upon available information, positive action by the Company is required to avert or minimize loss. Credits rated doubtful are generally also placed on non-accrual. | |||||||||||||||||||||||
As of December 31, 2014 and 2013, the following summarizes the Company's internal ratings of its loans, including purchased credit impaired loans: | |||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||
Pass | Special | Substandard | Doubtful | Total | |||||||||||||||||||
Mention | |||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction and land | $ | 69,425 | $ | — | $ | 541 | $ | — | $ | 69,966 | |||||||||||||
Farmland | 10,528 | — | — | — | 10,528 | ||||||||||||||||||
1 - 4 family residential | 105,786 | — | 2 | — | 105,788 | ||||||||||||||||||
Multi-family residential | 9,964 | — | — | — | 9,964 | ||||||||||||||||||
Nonfarm nonresidential | 195,464 | — | 375 | — | 195,839 | ||||||||||||||||||
Commercial | 205,681 | 672 | 748 | — | 207,101 | ||||||||||||||||||
Consumer | 3,925 | — | 199 | — | 4,124 | ||||||||||||||||||
| | | | | | | | | | | | | | | | | |||||||
Total | $ | 600,773 | $ | 672 | $ | 1,865 | $ | — | $ | 603,310 | |||||||||||||
| | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | |||||||
December 31, 2013 | |||||||||||||||||||||||
Pass | Special | Substandard | Doubtful | Total | |||||||||||||||||||
Mention | |||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction and land | $ | 46,998 | $ | — | 645 | $ | — | $ | 47,643 | ||||||||||||||
Farmland | 11,656 | — | — | — | 11,656 | ||||||||||||||||||
1 - 4 family residential | 85,649 | — | 1,259 | — | 86,908 | ||||||||||||||||||
Multi-family residential | 11,862 | — | — | — | 11,862 | ||||||||||||||||||
Nonfarm nonresidential | 171,371 | — | 80 | — | 171,451 | ||||||||||||||||||
Commercial | 158,919 | 731 | 1,173 | — | 160,823 | ||||||||||||||||||
Consumer | 4,878 | 7 | 42 | — | 4,927 | ||||||||||||||||||
| | | | | | | | | | | | | | | | | |||||||
Total | $ | 491,333 | $ | 738 | $ | 3,199 | $ | — | $ | 495,270 | |||||||||||||
| | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | |||||||
An analysis of the allowance for loan losses for the years ended December 31, 2014, 2013 and 2012, is as follows: | |||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||
Balance at beginning of year | $ | 5,018 | $ | 3,238 | $ | 1,012 | |||||||||||||||||
Provision charged to earnings | 1,423 | 1,883 | 2,953 | ||||||||||||||||||||
Charge-offs | (510 | ) | (240 | ) | (801 | ) | |||||||||||||||||
Recoveries | 50 | 137 | 74 | ||||||||||||||||||||
| | | | | | | | | | | |||||||||||||
Net charge-offs | (460 | ) | (103 | ) | (727 | ) | |||||||||||||||||
| | | | | | | | | | | |||||||||||||
Balance at end of year | $ | 5,981 | $ | 5,018 | $ | 3,238 | |||||||||||||||||
| | | | | | | | | | | |||||||||||||
| | | | | | | | | | | |||||||||||||
The allowance for loan losses as a percentage of total loans is 0.99% and 1.01% as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||
The following tables summarize the activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2014 and 2013: | |||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||
Construction | Residential | Nonfarm | Commercial | Consumer | Total | ||||||||||||||||||
Land and | Non- | ||||||||||||||||||||||
Farmland | Residential | ||||||||||||||||||||||
Balance at beginning of year | $ | 660 | $ | 970 | $ | 1,726 | $ | 1,585 | $ | 77 | $ | 5,018 | |||||||||||
Provision charged to earnings | 137 | 226 | 162 | 909 | (11 | ) | 1,423 | ||||||||||||||||
Charge-offs | (28 | ) | (30 | ) | — | (448 | ) | (4 | ) | (510 | ) | ||||||||||||
Recoveries | — | — | 2 | 46 | 2 | 50 | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
Net charge-offs | (28 | ) | (30 | ) | 2 | (402 | ) | (2 | ) | (460 | ) | ||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
Balance at end of year | $ | 769 | $ | 1,166 | $ | 1,890 | $ | 2,092 | $ | 64 | $ | 5,981 | |||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | | | | ||||
Period-end amount allocated to: | |||||||||||||||||||||||
Specific reserves: | |||||||||||||||||||||||
Impaired loans | $ | 44 | $ | — | $ | — | $ | 30 | $ | 13 | $ | 87 | |||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
Total specific reserves | 44 | — | — | 30 | 13 | 87 | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
General reserves | 725 | 1,166 | 1,890 | 2,062 | 51 | 5,894 | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
Total | $ | 769 | $ | 1,166 | $ | 1,890 | $ | 2,092 | $ | 64 | $ | 5,981 | |||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | | | | ||||
December 31, 2013 | |||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||
Construction | Residential | Nonfarm | Commercial | Consumer | Total | ||||||||||||||||||
Land and | Non- | ||||||||||||||||||||||
Farmland | Residential | ||||||||||||||||||||||
Balance at beginning of year | $ | 455 | $ | 755 | $ | 1,028 | $ | 947 | $ | 53 | $ | 3,238 | |||||||||||
Provision charged to earnings | 205 | 240 | 698 | 716 | 24 | 1,883 | |||||||||||||||||
Charge-offs | — | (85 | ) | — | (110 | ) | (45 | ) | (240 | ) | |||||||||||||
Recoveries | — | 60 | — | 32 | 45 | 137 | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
Net charge-offs | — | (25 | ) | — | (78 | ) | — | (103 | ) | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
Balance at end of year | $ | 660 | $ | 970 | $ | 1,726 | $ | 1,585 | $ | 77 | $ | 5,018 | |||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | | | | ||||
Period-end amount allocated to: | |||||||||||||||||||||||
Specific reserves: | |||||||||||||||||||||||
Impaired loans | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
Total specific reserves | — | — | — | — | — | — | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
General reserves | 660 | 970 | 1,726 | 1,585 | 77 | 5,018 | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
Total | $ | 660 | $ | 970 | $ | 1,726 | $ | 1,585 | $ | 77 | $ | 5,018 | |||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | | | | ||||
The Company's recorded investment in loans as of December 31, 2014 and 2013 related to the balance in the allowance for loan losses on the basis of the Company's impairment methodology is as follows: | |||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||
Construction | Residential | Nonfarm | Commercial | Consumer | Total | ||||||||||||||||||
Land and | Non- | ||||||||||||||||||||||
Farmland | Residential | ||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 541 | $ | 168 | $ | 1,086 | $ | 223 | $ | 38 | $ | 2,056 | |||||||||||
Loans collectively evaluated for impairment | 79,953 | 115,584 | 194,753 | 206,878 | 4,086 | 601,254 | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
Total | $ | 80,494 | $ | 115,752 | $ | 195,839 | $ | 207,101 | $ | 4,124 | $ | 603,310 | |||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | | | | ||||
December 31, 2013 | |||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||
Construction | Residential | Nonfarm | Commercial | Consumer | Total | ||||||||||||||||||
Land and | Non- | ||||||||||||||||||||||
Farmland | Residential | ||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 645 | $ | 1,212 | $ | 1,900 | $ | 366 | $ | 32 | $ | 4,155 | |||||||||||
Loans collectively evaluated for impairment | 58,654 | 97,558 | 169,551 | 160,457 | 4,895 | 491,115 | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
Total | $ | 59,299 | $ | 98,770 | $ | 171,451 | $ | 160,823 | $ | 4,927 | $ | 495,270 | |||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | | | | ||||
The Company has acquired certain loans which experienced credit deterioration since origination (purchased credit impaired loans). Accretion on purchased credit impaired loans is based on estimated future cash flows, regardless of contractual maturity. | |||||||||||||||||||||||
The carrying amount of those loans as of December 31, 2014 and 2013 was as follows: | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction and land: unpaid principal balance | $ | 819 | $ | 819 | |||||||||||||||||||
| | | | | | | | ||||||||||||||||
| | | | | | | | ||||||||||||||||
Carrying amount | $ | 541 | $ | 569 | |||||||||||||||||||
| | | | | | | | ||||||||||||||||
| | | | | | | | ||||||||||||||||
There were no loans purchased during the years ended December 31, 2014 and 2013. | |||||||||||||||||||||||
Income is not recognized on certain purchased credit impaired loans if the Company cannot reasonably estimate cash flows expected to be collected. Income on these loans is recognized using the asset recovery method. As of December 31, 2014 and 2013, there was only one purchased credit impaired loan remaining, which was accounted for using the cost recovery method. The carrying amounts of such loans were as follows: | |||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Loans at the end of the year | $ | 541 | $ | 569 | |||||||||||||||||||
Bank_Premises_and_Equipment
Bank Premises and Equipment | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Bank Premises and Equipment. | ||||||||
Bank Premises and Equipment | ||||||||
5. Bank Premises and Equipment | ||||||||
Bank premises and equipment in the accompanying consolidated balance sheets are summarized as follows: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Building and improvements | $ | 2,672 | $ | 2,343 | ||||
Leasehold improvements | 2,942 | 2,873 | ||||||
Land | 5,181 | 3,609 | ||||||
Furniture, fixtures and equipment | 3,732 | 3,459 | ||||||
| | | | | | | | |
14,527 | 12,284 | |||||||
Less accumulated depreciation | 3,377 | 2,332 | ||||||
| | | | | | | | |
$ | 11,150 | $ | 9,952 | |||||
| | | | | | | | |
| | | | | | | | |
The Company recorded depreciation expense of approximately $1,045, $972, and $764 for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||
Nonmarketable_Equity_Securitie
Non-marketable Equity Securities | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Non-marketable Equity Securities. | ||||||||
Non-marketable Equity Securities | ||||||||
6. Non-marketable Equity Securities | ||||||||
Investments in non-marketable equity securities in the accompanying consolidated balance sheets are summarized as follows: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Federal Home Loan Bank of Dallas stock | $ | 1,907 | $ | 827 | ||||
Federal Reserve Bank of Dallas stock | 2,182 | 1,837 | ||||||
Other non-marketable equity securities | 50 | 50 | ||||||
| | | | | | | | |
$ | 4,139 | $ | 2,714 | |||||
| | | | | | | | |
| | | | | | | | |
Intangible_Assets
Intangible Assets | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Intangible Assets | |||||||||||||
Intangible Assets | |||||||||||||
7. Intangible Assets | |||||||||||||
Intangible assets in the accompanying consolidated balance sheets are summarized as follows: | |||||||||||||
December 31, 2014 | |||||||||||||
Weighted | Gross | Accumulated | Net | ||||||||||
Amortization | Intangible | Amortization | Intangible | ||||||||||
Period | Asset | Asset | |||||||||||
Core deposit intangibles | 5.0 years | $ | 2,380 | $ | 1,170 | $ | 1,210 | ||||||
Other intangible assets | 4.9 years | 107 | 56 | 51 | |||||||||
| | | | | | | | | | | | | |
$ | 2,487 | $ | 1,226 | $ | 1,261 | ||||||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
December 31, 2013 | |||||||||||||
Weighted | Gross | Accumulated | Net | ||||||||||
Amortization | Intangible | Amortization | Intangible | ||||||||||
Period | Asset | Asset | |||||||||||
Core deposit intangibles | 6.0 years | $ | 2,380 | $ | 875 | $ | 1,505 | ||||||
Other intangible assets | 5.9 years | 107 | 45 | 62 | |||||||||
| | | | | | | | | | | | | |
$ | 2,487 | $ | 920 | $ | 1,567 | ||||||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
For the year ended December 31, 2014, 2013, and 2012, amortization expense related to intangible assets totaled approximately $306, $308, and $308, respectively. The estimated aggregate future amortization expense for intangible assets remaining as of December 31, 2014 was as follows: | |||||||||||||
Year | Amount | ||||||||||||
2015 | 301 | ||||||||||||
2016 | 297 | ||||||||||||
2017 | 297 | ||||||||||||
2018 | 206 | ||||||||||||
2019 | 87 | ||||||||||||
Thereafter | 73 | ||||||||||||
| | | | | |||||||||
$ | 1,261 | ||||||||||||
| | | | | |||||||||
| | | | | |||||||||
Goodwill
Goodwill | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Goodwill. | ||||||||
Goodwill | ||||||||
8. Goodwill | ||||||||
Changes in the carrying amount of goodwill are summarized as follows: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Beginning of year | $ | 19,148 | $ | 19,148 | ||||
Effect of acquisitions | — | — | ||||||
Impairment losses | — | — | ||||||
| | | | | | | | |
End of year | $ | 19,148 | $ | 19,148 | ||||
| | | | | | | | |
| | | | | | | | |
Deposits
Deposits | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deposits. | ||||||||
Deposits | ||||||||
9. Deposits | ||||||||
Deposits in the accompanying consolidated balance sheets are summarized as follows: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Noninterest-bearing demand accounts | $ | 251,124 | $ | 218,990 | ||||
Interest-bearing demand accounts | 57,556 | 40,178 | ||||||
Savings accounts | 6,101 | 5,286 | ||||||
Limited access money market accounts | 227,074 | 210,131 | ||||||
Certificates of deposit, greater than $100 | 79,517 | 81,478 | ||||||
Certificates of deposit, less than $100 | 17,371 | 17,875 | ||||||
| | | | | | | | |
$ | 638,743 | $ | 573,938 | |||||
| | | | | | | | |
| | | | | | | | |
As of December 31, 2014, the scheduled maturities of certificates of deposit were as follows: | ||||||||
Year | Amount | |||||||
2015 | $ | 84,304 | ||||||
2016 | 6,322 | |||||||
2017 | 2,201 | |||||||
2018 | 2,361 | |||||||
2019 | 1,700 | |||||||
| | | | | ||||
$ | 96,888 | |||||||
| | | | | ||||
| | | | | ||||
The aggregate amount of demand deposit overdrafts that have been reclassified as loans was $50 and $47 as of December 31, 2014 and 2013, respectively. | ||||||||
Advances_from_the_Federal_Home
Advances from the Federal Home Loan Bank | 12 Months Ended |
Dec. 31, 2014 | |
Advances from the Federal Home Loan Bank | |
Advances from the Federal Home Loan Bank | |
10. Advances from the Federal Home Loan Bank | |
Advances from the Federal Home Loan Bank totaled approximately $40,000 and $15,000 at December 31, 2014 and 2013, respectively. As of December 31, 2014, the advances were collateralized by a blanket floating lien on certain securities and loans, had a weighted average rate of 0.36% and mature on various dates during 2015, 2016 and 2018. The Company had the availability to borrow additional funds of approximately $236,067 as of December 31, 2014. | |
Other_Credit_Extensions
Other Credit Extensions | 12 Months Ended |
Dec. 31, 2014 | |
Other Credit Extensions | |
Other Credit Extensions | |
11. Other Credit Extensions | |
As of December 31, 2014 and 2013, the Company maintained two credit facilities with commercial banks which provide federal funds credit extensions with an availability to borrow up to an aggregate amount of approximately $14,600. There were no borrowings against these lines as of December 31, 2014 or 2013. | |
As of December 31, 2014 and 2013, the Company maintained a secured line of credit with the Federal Reserve Bank with an availability to borrow approximately $164,026 and $127,088, respectively. Approximately $201,210 and $155,895 of commercial loans were pledged as collateral at December 31, 2014 and 2013, respectively. There were no borrowings against this line as of December 31, 2014 or 2013. | |
Junior_Subordinated_Debentures
Junior Subordinated Debentures and Subordinated Notes | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Junior Subordinated Debentures and Subordinated Notes | ||||||||
Junior Subordinated Debentures and Subordinated Notes | ||||||||
12. Junior Subordinated Debentures and Subordinated Notes | ||||||||
Junior subordinated debentures and subordinated notes in the accompanying consolidated balance sheets are as follows: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Junior subordinated debentures—Trust Securities with a rate of LIBOR plus 1.85% debentures payable to Parkway National Capital Trust 1 with stated maturity of 2036 | $ | 3,093 | $ | 3,093 | ||||
| | | | | | | | |
| | | | | | | | |
Subordinated notes—unsecured notes with a fixed rate of 6% payable to entities of an affiliate with stated maturity of 2023 (less discount of $21—effective interest rate of 6.025%) | $ | 4,981 | $ | 4,979 | ||||
| | | | | | | | |
| | | | | | | | |
Junior Subordinated Debentures | ||||||||
In connection with the acquisition of Fidelity Resource Company during 2011, the Company assumed $3.1 million in fixed/floating rate junior subordinated debentures underlying common securities and preferred capital securities, or the Trust Securities, issued by Parkway National Capital Trust I, a statutory business trust and acquired wholly-owned subsidiary of the Company. The Company assumed the guarantor position and as such, unconditionally guarantees payment of accrued and unpaid distributions required to be paid on the Trust Securities subject to certain exceptions, the redemption price when a capital security is called for redemption and amounts due if a trust is liquidated or terminated. | ||||||||
The Company owns all of the outstanding common securities of the trust. The trust used the proceeds from the issuance of its Trust Securities to buy the debentures originally issued by Fidelity Resource Company. These debentures are the trust's only assets and the interest payments from the debentures finance the distributions paid on the Trust Securities. | ||||||||
The Trust Securities pay cumulative cash distributions quarterly at a rate per annum equal to the 3-month LIBOR plus 1.85% percent. So long as no event of default leading to an acceleration event has occurred, the Company has the right at any time and from time to time during the term of the debenture to defer payments of interest by extending the interest distribution period for up to twenty consecutive quarterly periods. The effective rate as of December 31, 2014 and 2013 was 2.09% and 2.10%, respectively. The Trust Securities are subject to mandatory redemption in whole or in part, upon repayment of the debentures at the stated maturity in the year 2036 or their earlier redemption, in each case at a redemption price equal to the aggregate liquidation preference of the Trust Securities plus any accumulated and unpaid distributions thereon to the date of redemption. Prior redemption is permitted under certain circumstances. | ||||||||
The Trust Securities qualify as Tier 1 capital, subject to regulatory limitations, under guidelines established by the Federal Reserve. | ||||||||
Subordinated Notes | ||||||||
During 2013 the Company issued, in the aggregate principal amount of $5,000, subordinated promissory notes (Notes) via a private offering. The Notes were issued to certain entities controlled by an affiliate of the Company for the purpose of using the proceeds to support the growth of the Company. The Notes are unsecured, with interest payable quarterly at a fixed rate of 6% per annum, and unpaid principal and interest due at the stated maturity in the year 2023. The Notes qualify as Tier 2 Capital, subject to regulatory limitations, under guidelines established by the Federal Reserve. In addition, the Notes may be redeemed in whole or in part on any interest payment date that occurs on or after December 23, 2018 subject to approval of the Federal Reserve in compliance with applicable statues and regulations. | ||||||||
In connection with the issuance of the Notes, the Company issued warrants to purchase 25,000 shares of common stock of the Company at $11 per share, exercisable at any time, in whole or in part, prior to December 31, 2023. The fair value of the warrants was calculated at $0.80 and is recorded as additional paid-in capital and the related debt discount is being accreted into interest expense. | ||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Income Taxes | |||||||||||
Income Taxes | |||||||||||
13. Income Taxes | |||||||||||
The provision for income taxes is summarized as follows: | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Income tax expense (benefit): | |||||||||||
Current | $ | 3,171 | $ | 2,491 | $ | 534 | |||||
Deferred | (466 | ) | (714 | ) | (398 | ) | |||||
| | | | | | | | | | | |
$ | 2,705 | $ | 1,777 | $ | 136 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
The table below reconciles income tax expense for the years ended December 31, 2014, 2013 and 2012 computed by applying the applicable U.S. Federal statutory income tax rate, reconciled to the tax expense computed at the effective income tax rate: | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Federal income tax expense rate at 34% | $ | 2,690 | $ | 1,763 | $ | 549 | |||||
Stock option expense | — | 76 | 58 | ||||||||
Bank-owned life insurance income | (118 | ) | (110 | ) | (52 | ) | |||||
Non-deductible dues and memberships | 50 | 48 | 44 | ||||||||
Non-deductible meals and entertainment | 43 | 24 | — | ||||||||
Change in valuation allowance | — | — | (518 | ) | |||||||
Other | 40 | (24 | ) | 55 | |||||||
| | | | | | | | | | | |
Total income tax expense | 2,705 | 1,777 | 136 | ||||||||
| | | | | | | | | | | |
Effective tax rate | 34.2 | % | 34.3 | % | 8.4 | % | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Deferred income taxes reflect the net tax effects of temporary differences between the recorded amounts of assets and liabilities for financial reporting purposes, and the amounts used for income tax purposes. Significant components of the Company's deferred tax assets and liabilities are as follows: | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
Deferred tax assets: | |||||||||||
Net operating loss | $ | — | $ | 96 | |||||||
Organizational costs | 167 | 183 | |||||||||
Allowance for loan losses | 1,868 | 1,619 | |||||||||
Deferred loan fees | 18 | 32 | |||||||||
Non-accrual interest | 69 | 62 | |||||||||
Capital loss carryforward | 85 | 85 | |||||||||
ORE write down for book purposes | — | 55 | |||||||||
Deferred rent expenses | 66 | 70 | |||||||||
Restricted stock | 131 | 84 | |||||||||
Stock options | 73 | — | |||||||||
Accrued bonuses | 271 | 243 | |||||||||
Other | 137 | 134 | |||||||||
| | | | | | | | ||||
Total deferred tax assets | 2,885 | 2,663 | |||||||||
| | | | | | | | ||||
Deferred tax liabilities: | |||||||||||
Net unrealized gain on securities available for sale | 88 | 14 | |||||||||
Core deposit intangibles | 412 | 512 | |||||||||
FHLB stock dividends | 27 | 26 | |||||||||
Bank premises and equipment | 973 | 1,118 | |||||||||
| | | | | | | | ||||
Total deferred tax liabilities | 1,500 | 1,670 | |||||||||
| | | | | | | | ||||
Net deferred tax asset | $ | 1,385 | $ | 993 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Included in the accompanying consolidated balance sheets in as of December 31, 2014 is a current tax liability of $89 in accrued interest payable and other liabilities and a net deferred tax asset of $1,385 in other assets. Included in the accompanying consolidated balance sheets in other assets as of December 31, 2013 is a current tax receivable of $292 and a net deferred tax asset of $993. | |||||||||||
Commitment_and_Contingencies
Commitment and Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies | |||||
Commitments and Contingencies | |||||
14. Commitments and Contingencies | |||||
Litigation | |||||
The Company may from time to time be involved in legal actions arising from normal business activities. Management believes that these actions are without merit or that the ultimate liability, if any, resulting from them will not materially affect the financial position or results of operations of the Company. | |||||
Operating Leases | |||||
The Company leases several of its banking facilities under operating leases expiring in various years through 2022. Minimum future rental payments under these non-cancelable operating leases as of December 31, 2014 for each of the next five years and in the aggregate are: | |||||
Year Ended December 31, | Amount | ||||
2015 | $ | 955 | |||
2016 | 879 | ||||
2017 | 904 | ||||
2018 | 816 | ||||
2019 | 751 | ||||
Thereafter | 1717 | ||||
| | | | | |
$ | 6,022 | ||||
| | | | | |
| | | | | |
Rental expense was approximately $1,468, $1,353 and $1,205 for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||
Certain of the operating leases above provide for renewal options at their fair value at the time of renewal. In the normal course of business, operating leases are generally renewed or replaced by other leases. | |||||
During 2012, the Company relocated its corporate office facilities and incurred an approximate loss of $102 for early contract termination of the leased space. All terminating costs were recorded in occupancy of bank premises in the accompanying consolidated statements of income with a corresponding deferral recorded in other liabilities in the accompanying consolidated balance sheets. The liability was reduced as the remaining lease payments were made. As of December 31, 2014 there was no remaining liability. As of December 31, 2013, approximately $7 remained as a liability in the accompanying consolidated balance sheet. | |||||
Other_Noninterest_Expense
Other Non-interest Expense | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Other Non-interest Expense | |||||||||||
Other Non-interest Expense | |||||||||||
15. Other Non-interest Expense | |||||||||||
Significant components of the Company's other non-interest expense are as follows: | |||||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Business development | $ | 446 | $ | 308 | $ | 235 | |||||
Office and postage | 240 | 216 | 304 | ||||||||
Director fees | 198 | 83 | 45 | ||||||||
Insurance | 92 | 99 | 95 | ||||||||
Security | 115 | 105 | 102 | ||||||||
Charitable contributions and dontations | 147 | 135 | 62 | ||||||||
Travel | 41 | 42 | 37 | ||||||||
Training | 45 | 34 | 26 | ||||||||
Other | 787 | 701 | 553 | ||||||||
| | | | | | | | | | | |
Total | $ | 2,111 | $ | 1,723 | $ | 1,459 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Fair_Value_Disclosures
Fair Value Disclosures | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Fair Value Disclosures | ||||||||||||||
Fair Value Disclosures | ||||||||||||||
16. Fair Value Disclosures | ||||||||||||||
The authoritative guidance for fair value measurements defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact. | ||||||||||||||
The authoritative guidance requires the use of valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement costs). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. In that regard, the authoritative guidance establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: | ||||||||||||||
Level 1 Inputs. Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. | ||||||||||||||
Level 2 Inputs. Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (for example, interest rates, volatilities, prepayment speeds, loss severities, credit risks and default rates) or inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 2 investments consist primarily of obligations of U.S. government sponsored enterprises and agencies, obligations of state and municipal subdivisions, corporate bonds and mortgage-backed securities. | ||||||||||||||
Level 3 Inputs. Significant unobservable inputs that reflect an entity's own assumptions that market participants would use in pricing the assets or liabilities. | ||||||||||||||
In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market- based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. While management believes the Company's valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. | ||||||||||||||
A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. | ||||||||||||||
Assets and liabilities measured at fair value on a recurring basis include the following: | ||||||||||||||
Investment Securities Available For Sale: Securities classified as available for sale are reported at fair value utilizing Level 2 inputs. For those securities classified as Level 2, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U. S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayments speeds, credit information and the bond's terms and conditions, among other things. | ||||||||||||||
The following table summarizes assets measured at fair value on a recurring basis as of December 31, 2014 and 2013, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: | ||||||||||||||
Fair Value | ||||||||||||||
Measurements Using | ||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||
Inputs | Inputs | Inputs | Fair Value | |||||||||||
As of December 31, 2014: | ||||||||||||||
Investment securities available for sale | $ | — | $ | 45,127 | $ | — | $ | 45,127 | ||||||
As of December 31, 2013: | ||||||||||||||
Investment securities available for sale | $ | — | $ | 45,604 | $ | — | $ | 45,604 | ||||||
There were no liabilities measured at fair value on a recurring basis as of December 31, 2014 and 2013. | ||||||||||||||
There were no transfers between Level 2 and Level 3 during the years ended December 31, 2014 and 2013. | ||||||||||||||
Certain assets and liabilities are measured at fair value on a non- recurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). | ||||||||||||||
Assets measured at fair value on a non-recurring basis include impaired loans and other real estate owned. The fair value of impaired loans with specific allocations of the allowance for loan losses and other real estate owned is based upon recent real estate appraisals less estimated costs of sale. For residential real estate impaired loans and other real estate owned, appraised values are based on the comparative sales approach. For commercial and commercial real estate impaired loans and other real estate owned, appraisers may use either a single valuation approach or a combination of approaches such as comparative sales, cost or the income approach. A significant unobservable input in the income approach is the estimated income capitalization rate for a given piece of collateral. Adjustments to appraisals may be made to reflect local market conditions or other economic factors and may result in changes in the fair value of a given asset over time. As such, the fair value of impaired loans and other real estate owned are considered a Level 3 in the fair value hierarchy. | ||||||||||||||
The Company recovers the carrying value of other real estate owned through the sale of the property. The ability to affect future sales prices is subject to market conditions and factors beyond the Company's control and may impact the estimated fair value of a property. | ||||||||||||||
Appraisals for impaired loans and other real estate owned are performed by certified general appraisers whose qualifications and licenses have been reviewed and verified by the Company. Once reviewed, a member of the credit department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparisons to independent data sources such as recent market data or industry wide-statistics. On a periodic basis, the Company compares the actual selling price of collateral that has been sold to the most recent appraised value to determine what additional adjustments, if any, should be made to the appraisal value to arrive at fair value. | ||||||||||||||
The following table summarizes assets measured at fair value on a non- recurring basis as of December 31, 2014 and 2013, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: | ||||||||||||||
Fair Value | ||||||||||||||
Measurements Using | ||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||
Inputs | Inputs | Inputs | Fair Value | |||||||||||
As of December 31, 2014: | ||||||||||||||
Assets: | ||||||||||||||
Impaired loans | $ | — | $ | — | $ | 2,056 | $ | 2,056 | ||||||
Other real estate owned | $ | — | $ | — | $ | 50 | $ | 50 | ||||||
As of December 31, 2013: | ||||||||||||||
Assets: | ||||||||||||||
Impaired loans | $ | — | $ | — | $ | 4,155 | $ | 4,155 | ||||||
Other real estate owned | $ | — | $ | — | $ | 1,797 | $ | 1,797 | ||||||
At December 31, 2014, impaired loans had a carrying value of $2,056, with $87 specific allowance for loan loss allocated. At December 31, 2013, impaired loans had a carrying value of $4,155, with no specific allowance for loan loss allocated. | ||||||||||||||
Other real estate owned properties are measured for impairment using the fair value of the collateral less estimated cost to sell and had a carrying amount of approximately $53 and $1,959 reduced by approximately $3 and $162, for the years ended December 31, 2014 and 2013, respectively. | ||||||||||||||
There were no liabilities measured at fair value on a non-recurring basis as of December 31, 2014 and 2013. | ||||||||||||||
For Level 3 financial assets measured at fair value as of December 31, 2014 and 2013, the significant unobservable inputs used in the fair value measurements were as follows: | ||||||||||||||
December 31, 2014 | ||||||||||||||
Assets/Liabilities | Fair Value | Valuation Technique | Unobservable Input(s) | Weighted | ||||||||||
Average | ||||||||||||||
Impaired loans | $ | 2,056 | Collateral Method | Adjustments for selling costs | 8 | % | ||||||||
Other real estate owned | $ | 50 | Collateral Method | Adjustments for selling costs | 8 | % | ||||||||
December 31, 2013 | ||||||||||||||
Assets/Liabilities | Fair Value | Valuation Technique | Unobservable Input(s) | Weighted | ||||||||||
Average | ||||||||||||||
Impaired loans | $ | 4,155 | Collateral Method | Adjustments for selling costs | 8 | % | ||||||||
Other real estate owned | $ | 1,797 | Collateral Method | Adjustments for selling costs | 8 | % | ||||||||
Fair Value of Financial Instruments | ||||||||||||||
The Company is required under current authoritative guidance to disclose the estimated fair value of their financial instrument assets and liabilities including those subject to the requirements discussed above. For the Company, as for most financial institutions, substantially all of its assets and liabilities are considered financial instruments, as defined. Many of the Company's financial instruments, however, lack an available trading market as characterized by a willing buyer and willing seller engaging in an exchange transaction. | ||||||||||||||
The estimated fair value amounts of financial instruments have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. In addition, reasonable comparability between financial institutions may not be likely due to the wide range of permitted valuation techniques and numerous estimates that must be made given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies also introduces a greater degree of subjectivity to these estimated fair values. | ||||||||||||||
The methods and assumptions used by the Company in estimating fair values of financial instruments as disclosed herein in accordance with ASC Topic 825, Financial Instruments, other than for those measured at fair value on a recurring and nonrecurring basis discussed above, are as follows: | ||||||||||||||
Cash and cash equivalents: The carrying amounts of cash and cash equivalents approximate their fair value. | ||||||||||||||
Loans and loans held for sale: For variable-rate loans that reprice frequently and have no significant changes in credit risk, fair values are based on carrying values. Fair values for certain mortgage loans (for example, one-to-four family residential), commercial real estate and commercial loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. | ||||||||||||||
Bank-owned life insurance: The carrying amounts of bank-owned life insurance approximate their fair value. | ||||||||||||||
Non-marketable equity securities: The carrying value of restricted securities such as stock in the Federal Home Loan Bank of Dallas and Independent Bankers Financial Corporation approximates fair value. | ||||||||||||||
Deposits: The fair values disclosed for demand deposits are, by definition, equal to the amount payable on demand at the reporting date (that is their carrying amounts). The carrying amounts of variable-rate certificates of deposit (CDs) approximate their fair values at the reporting date. Fair values for fixed-rate CDs are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits. | ||||||||||||||
Advances from Federal Home Loan Bank: The fair value of advances maturing within 90 days approximates carrying value. Fair value of other advances is based on the Company's current borrowing rate for similar arrangements. | ||||||||||||||
Junior subordinated debentures and subordinated notes: The fair values are based upon prevailing rates on similar debt in the market place. | ||||||||||||||
Accrued interest: The carrying amounts of accrued interest approximate their fair values due to short term maturity. | ||||||||||||||
Off-balance sheet instruments: Commitments to extend credit and standby letters of credit are generally priced at market at the time of funding and were not material to the Company's consolidated financial statements. | ||||||||||||||
The estimated fair values and carrying values of all financial instruments under current authoritative guidance as of December 31, 2014 and 2013 were as follows: | ||||||||||||||
December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||
Amount | Value | Amount | Value | |||||||||||
Financial assets: | ||||||||||||||
Level 2 inputs: | ||||||||||||||
Cash and cash equivalents | $ | 93,251 | $ | 93,251 | $ | 76,646 | $ | 76,646 | ||||||
Securities available for sale | 45,127 | 45,127 | 45,604 | 45,604 | ||||||||||
Loans held for sale | 8,858 | 8,858 | 2,051 | 2,051 | ||||||||||
Accrued interest receivable | 1,542 | 1,542 | 1,351 | 1,351 | ||||||||||
Bank-owned life insurance | 17,822 | 17,822 | 10,475 | 10,475 | ||||||||||
Non-marketable equity securities | 4,139 | 4,139 | 2,714 | 2,714 | ||||||||||
Level 3 inputs: | ||||||||||||||
Loans, net | 597,278 | 596,138 | 490,158 | 490,344 | ||||||||||
Financial liabilities: | ||||||||||||||
Level 2 inputs: | ||||||||||||||
Deposits | $ | 638,743 | $ | 630,402 | $ | 573,938 | $ | 568,451 | ||||||
Advances from FHLB | 40,000 | 40,028 | 15,000 | 15,055 | ||||||||||
Accrued interest payable | 126 | 126 | 134 | 134 | ||||||||||
Junior subordinated debentures | 3,093 | 3,093 | 3,093 | 3,093 | ||||||||||
Subordinated notes | 4,981 | 4,981 | 4,979 | 4,979 | ||||||||||
Financial_Instruments_with_Off
Financial Instruments with Off-Balance Sheet Risk | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Financial Instruments with Off-Balance Sheet Risk | ||||||||
Financial Instruments with Off-Balance Sheet Risk | ||||||||
17. Financial Instruments with Off-Balance Sheet Risk | ||||||||
The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets. | ||||||||
The Company's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on balance sheet instruments. | ||||||||
The following table sets forth the approximate amounts of these financial instruments as of December 31, 2014 and 2013: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Commitments to extend credit | $ | 144,224 | $ | 92,827 | ||||
Standby letters of credit | 818 | 210 | ||||||
| | | | | | | | |
$ | 145,042 | $ | 93,037 | |||||
| | | | | | | | |
| | | | | | | | |
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 may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Management evaluates each customer's creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary upon extension of credit, is based on management's credit evaluation of the borrower. | ||||||||
Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Standby letters of credit generally have fixed expiration dates or other termination clauses and may require payment of a fee. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company's policy for obtaining collateral and the nature of such collateral is essentially the same as that involved in making commitments to extend credit. | ||||||||
Although the maximum exposure to loss is the amount of such commitments, management currently anticipates no material losses from such activities. | ||||||||
Employee_Benefits
Employee Benefits | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Employee Benefits | ||||||||
Employee Benefits | ||||||||
18. Employee Benefits | ||||||||
Defined contribution plan | ||||||||
The Company maintains a retirement savings 401(k) profit sharing plan (Plan) in which substantially all employees may participate. The Plan provides for "before tax" employee contributions through salary reductions under section 401(k) of the Internal Revenue Code. The Company may make a discretionary match of employees' contributions based on a percentage of salary deferrals and certain discretionary profit sharing contributions. No matching contributions to the Plan were made for the years ending December 31, 2014 and 2013. | ||||||||
ESOP | ||||||||
Effective January 1, 2012, the Company adopted an Employee Stock Ownership Plan (ESOP) covering all employees that meet certain age and service requirements. Plan assets are held and managed by the Company. Shares of the Company's common stock purchased by the Veritex Community Bank Employee Stock Ownership Plan (ESOP) are held in a suspense account until released for allocation to participants. Shares released are allocated to each eligible participant based on the participant's 401(k) contribution made during that year. Compensation expense is measured based upon the expected amount of the Company's discretionary contribution which is determined on an annual basis and is accrued ratably over the year. Shares are committed to be released to settle the liability upon formal declaration of the contribution at the end of the year. The number of shares released to settle the liability is based upon fair value of the shares as of the end of the year and become outstanding shares for earnings per share computations. The cost of shares issued to the ESOP, but not yet committed to be released, is shown as a reduction of stockholders' equity. To the extent that the fair value of the ESOP shares differs from the cost of such shares, the difference is charged or credited to stockholders' equity as additional paid in capital. | ||||||||
In January 2014, the ESOP borrowed $500 from the Company and purchased 46,082 shares of the common stock of the Company. The ESOP debt is secured by shares of the Company. The loan will be repaid from contributions to the ESOP from the Company. As the debt is repaid, shares are released from collateral and allocated to employees' accounts. The shares pledged as collateral are reported as unearned ESOP shares in the consolidated balance sheets. During year ended December 31, 2014 the ESOP loan was repaid approximately $118 from contributions to ESOP from the Company. As a result of the repayment, 9,147 shares were released from collateral and allocated to employee participant accounts. During the year ended December 31, 2013, the ESOP purchased 7,811 shares of the Company's common stock and allocated the shares to the plan participants. | ||||||||
Compensation expense attributed to the ESOP contributions recorded in the accompanying consolidated statements of income for years ended December 31, 2014 and 2013 was approximately $152 and $120, respectively. | ||||||||
The following is a summary of ESOP shares as of December 31, 2014 and December 31, 2013. | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Allocated shares | 16,958 | 7,811 | ||||||
Unearned shares | 36,935 | — | ||||||
| | | | | | | | |
Total ESOP shares | 53,893 | 7,811 | ||||||
| | | | | | | | |
| | | | | | | | |
Fair value of unearned shares | $ | 523 | $ | — | ||||
Stock_and_Incentive_Plans
Stock and Incentive Plans | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Stock and Incentive Plans | |||||||||||||||||
Stock and Incentive Plans | |||||||||||||||||
19. Stock and Incentive Plans | |||||||||||||||||
2010 Stock Option and Equity Incentive Plan | |||||||||||||||||
In 2010, the Company adopted the 2010 Stock Option and Equity Incentive Plan (the Incentive Plan), which the Company's shareholders approved in 2011. The maximum number of shares of common stock that may be issued pursuant to grants or options under the Incentive Plan is 1,000,000. The Incentive Plan is administered by the Board of Directors and provides for both the direct award of stock and the grant of stock options to eligible directors, officers, employees and outside consultants of the Company or its affiliates as defined in the Incentive Plan. The Company may grant either incentive stock options or nonqualified stock options as directed in the Incentive Plan. | |||||||||||||||||
The Board authorized that the Incentive Plan provide for the award of 100,000 shares of direct stock awards (restricted shares) and 900,000 shares of stock options, of which 500,000 shares are performance-based stock options. Options are generally granted with an exercise price equal to the market price of the Company's stock at the date of the grant; those option awards generally vest based on 5 years of continuous service and have 10-year contractual terms for non-controlling participants as defined by the Incentive Plan, and forfeiture of unexercised options upon termination of employment with the Company. Other grant terms can vary for controlling participants as defined by the Incentive Plan. Restricted share awards generally vest after 4 years of continuous service. The terms of the Incentive Plan include a provision whereby all unearned non-performance options and restricted shares become immediately exercisable and fully vested upon a change in control. The vesting of a performance-based stock option is contingent upon a change of control and the achievement of specific performance criteria or other objectives set at the grant date. | |||||||||||||||||
With the adoption the of the 2014 Omnibus Plan, which is discussed below, the Company does not plan to award any additional grants or options under the Incentive Plan. | |||||||||||||||||
On October 9, 2014, the Company cancelled outstanding performance-based options to purchase 467,500 shares of Company common stock with a weighted average exercise price of $10.13 per share under the Incentive Plan, and granted 81,480 restricted stock units to 29 employees and directors under the 2014 Omnibus Plan. The Company accounted for cancellation of the equity awards and replacement as a modification of the original awards. The 81,480 restricted stock units fully vest five years from the date of the grant with 20% vesting each year. The incremental compensation cost resulting from the modification amounts to $1,059 which will be recognized over the 5 year vesting period net of expected forfeitures. | |||||||||||||||||
During the year ended 2014, the Company awarded 28,500 restricted shares, 30,000 nonperformance-based stock options and 50,000 performance-based stock options. | |||||||||||||||||
During the year ended 2013, the Company awarded 1,000 restricted shares, 10,000 nonperformance-based stock options and 10,000 performance-based stock options. | |||||||||||||||||
Stock based compensation expense is measured based upon the fair market value of the award at the grant date and is recognized ratably over the period during which the shares are earned (the requisite service period). For the years ended December 31, 2014, 2013 and 2012, approximately $329, $323 and $255 of stock compensation expense related to the Incentive Plan, respectively, was recognized in the accompanying consolidated statements of income. As of December 31, 2014, there was approximately $230 of unrecognized compensation expense related to non-vested share-based compensation awards that is expected to be recognized over the remaining requisite service periods of the awards granted. As of December 31, 2013, there was approximately $1,670 of unrecognized compensation expense related to non-vested share-based compensation awards of which $844 that was expected to be recognized over the remaining requisite service periods of the awards granted. The remaining unrecognized compensation expense of $826 was not expected to be recognized as the certain performance criteria on the performance options were not expected to be achieved.. | |||||||||||||||||
The fair value of each option award is estimated on the grant date using the Black-Scholes option-pricing model with the following assumptions used for the grants: | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Dividend yield | 0.00% | 0.00% | |||||||||||||||
Expected life | 6.5 to 6.9 years | 10 years | |||||||||||||||
Expected volatility | 5.60% | 4.00% | |||||||||||||||
Risk-free interest rate | 2.54% to 2.85% | 2.05% to 2.75% | |||||||||||||||
The expected life is based on the expected amount of time that options granted are expected to be outstanding. The dividend yield assumption is based on the Company's history. The expected volatility is based on historical volatility of the Company. The risk-free interest rates are based upon yields of U.S. Treasury issues with a term equal to the expected life of the option being valued. | |||||||||||||||||
A summary of option activity under the 2010 Incentive Plan as of December 31, 2014 and 2013, and changes during the years then ended is presented below: | |||||||||||||||||
2014 | |||||||||||||||||
Nonperformance-based stock options | Performance-based stock options | ||||||||||||||||
Shares | Weighted | Weighted | Shares | Weighted | Weighted | ||||||||||||
Underlying | Exercise | Average | Underlying | Average | Average | ||||||||||||
Options | Price | Contractual | Options | Exercise | Contractual | ||||||||||||
Term | Price | Term | |||||||||||||||
Outstanding at beginning of year | 327,500 | $ | 10.03 | 7.69 years | 422,500 | $ | 10.02 | 8.0 years | |||||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Granted during the year | 30,000 | 11.53 | 50,000 | 11.26 | |||||||||||||
Forfeited during the year | (5,000 | ) | 10.85 | (5,000 | ) | 10.85 | |||||||||||
Cancelled | — | — | (467,500 | ) | 10.14 | ||||||||||||
Exercised during the year | — | — | — | — | |||||||||||||
| | | | | | | | | | | | | | | | | |
Outstanding at the end of year | 352,500 | $ | 10.14 | 6.58 years | — | — | — | ||||||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Options exercisable at end of year | 189,000 | $ | 10.05 | 6.37 years | — | $ | — | — | |||||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Weighted average fair value of options granted during the year | $ | 1.94 | $ | 2.03 | |||||||||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
2013 | |||||||||||||||||
Nonperformance-based stock options | Performance-based stock options | ||||||||||||||||
Shares | Weighted | Weighted | Shares | Weighted | Weighted | ||||||||||||
Underlying | Exercise | Average | Underlying | Average | Average | ||||||||||||
Options | Price | Contractual | Options | Exercise | Contractual | ||||||||||||
Term | Price | Term | |||||||||||||||
Outstanding at beginning of year | 332,500 | $ | 10 | 8.18 years | 432,500 | $ | 10 | 8.0 years | |||||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Granted during the year | 10,000 | 10.85 | 10,000 | 10.85 | |||||||||||||
Forfeited during the year | (15,000 | ) | 10 | (20,000 | ) | 10 | |||||||||||
Exercised during the year | — | — | — | — | |||||||||||||
| | | | | | | | | | | | | | | | | |
Outstanding at the end of year | 327,500 | $ | 10.03 | 7.69 years | 422,500 | $ | 10.02 | 8.0 years | |||||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Options exercisable at end of year | 115,500 | $ | 10 | 7.02 years | — | $ | — | — | |||||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Weighted average fair value of options granted during the year | $ | 2.51 | $ | 2.51 | |||||||||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
As of December 31, 2014 and 2013, the aggregate intrinsic value was $1,420 and $939, respectively, for outstanding nonperformance-based options and $780 and $335, respectively, for exercisable nonperformance-based stock options. | |||||||||||||||||
As of December 31, 2014 no performance-based stock options were outstanding or excercisable . As of December 31, 2013, the aggregate intrinsic value was $1,216 for performance-based stock options. No performance-based stock options were exercisable as of December 31, 2013. | |||||||||||||||||
As of December 31, 2014 and 2013, there was $230 and $1,520, respectively, of total unrecognized compensation expense related to non-vested option shares, of which $230 and $402, respectively, was related to the nonperformance-based stock options. The nonperformance-based stock option expense as of December 31, 2014 will be recognized over the remaining weighted average requisite service period of 2.33 years. Expense associated with the performance-based stock options was based on the probability of future changes in control and other market conditions. During 2014 all of the outstanding performance-based options were cancelled and replaced with restricted stock units awarded under 2014 Omnibus Plan. Accordingly, there is no unrecognized compensation expense for these performance-based options as of December 31, 2014. During 2013, management determined that one performance condition had been met and expensed a portion of the performance-based option expense. Total unrecognized compensation expense related to these performance-based options as of December 31, 2013 was approximately $349, and was expected to be recognized over the remaining weighted average requisite service period of 7 years. Management did not anticipate meeting the other market conditions in the foreseeable future; therefore, no performance-based stock option expense related to these conditions was recorded for the year ended December 31, 2013. | |||||||||||||||||
A summary of the status of the Company's restricted shares as of December 31, 2014 and 2013, and changes during the years then ended is as follows: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Shares | Weighted | Shares | Weighted | ||||||||||||||
Average | Average | ||||||||||||||||
Grant Date | Grant Date | ||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||
Nonvested at January 1, | 35,000 | $ | 10.02 | 40,000 | $ | 10 | |||||||||||
Granted during the year | 28,500 | 11.93 | 1,000 | 10.85 | |||||||||||||
Vested during the year | — | — | — | — | |||||||||||||
Forfeited during the year | (1,250 | ) | 10.85 | (6,000 | ) | 10 | |||||||||||
| | | | | | | | | | | | | | ||||
Nonvested at December 31, | 62,250 | $ | 10.86 | 35,000 | $ | 10.02 | |||||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
As of December 31, 2014 and 2013, there was $286, and $150, respectively, of total unrecognized compensation expense related to nonvested restricted shares. The compensation expense as of December 31, 2014 expected to be recognized over the remaining weighted average requisite service period of 1.74 years. | |||||||||||||||||
2014 Omnibus Plan | |||||||||||||||||
In September of 2014, the Company adopted an omnibus incentive plan or the 2014 Omnibus Plan (Omnibus Plan). The purpose of the Omnibus Plan is to align the long-term financial interests of the employees, directors, consultants and other service providers with those of the shareholders, to attract and retain those employees, directors, consultants and other service providers by providing compensation opportunities that are competitive with other companies and to provide incentives to those individuals who contribute significantly to the Company's long-term performance and growth. To accomplish these goals, the Omnibus Plan permits the issuance of stock options, share appreciation rights, restricted shares, restricted share units, deferred shares, unrestricted shares and cash-based awards. The maximum number of shares of the Company's common stock that may be issued pursuant to grants or options under the Omnibus Plan is 1,000,000. | |||||||||||||||||
On October 9, 2014, the Company cancelled outstanding performance-based options to purchase 467,500 shares of Company common stock with a weighted average exercise price of $10.13 per share under the Incentive Plan, and granted approximately 81,480 restricted stock units to 29 employees and directors under the 2014 Omnibus Plan. The Company accounted for cancellation of the equity awards and replacement as a modification of the original awards. The 81,480 restricted stock units fully vest five years from the date of the grant with 20% vesting each year. The incremental compensation cost resulting from the modification amounts to $1,059 which will be recognized over the 5 year vesting period net of expected forfeitures. | |||||||||||||||||
In addition to the 81,480 restricted units granted in conjunction with the cancellation of peformance based options, the Company granted an additional 8,223 restricted stock units to its employees and directors during 2014 under the Omnibus Plan. As of December 31, 2014, 89,903 restricted stock units had been granted under the Omnibus Plan. | |||||||||||||||||
A summary of the status of the Company's restricted stock units as of December 31, 2014, and changes during the years then ended is as follows: | |||||||||||||||||
2014 | |||||||||||||||||
Shares | Weighted | ||||||||||||||||
Average | |||||||||||||||||
Grant Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Nonvested at January 1, | — | — | |||||||||||||||
Granted during the year | 89,703 | 13 | |||||||||||||||
Vested during the year | (7,000 | ) | — | ||||||||||||||
Forfeited during the year | — | — | |||||||||||||||
| | | | | | | | ||||||||||
Nonvested at December 31, | 82,903 | $ | 13 | ||||||||||||||
| | | | | | | | ||||||||||
| | | | | | | | ||||||||||
For the years ended December 31, 2014 approximately $126 was recognized of stock compensation expense in the accompanying consolidated statements of income. As of December 31, 2014 there was $922 of total unrecognized compensation expense related to nonvested restricted stock units. The compensation expense is expected to be recognized over the remaining weighted average requisite service period of 4.74 years. | |||||||||||||||||
Significant_Concentrations_of_
Significant Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2014 | |
Significant Concentrations of Credit Risk | |
Significant Concentrations of Credit Risk | |
20. Significant Concentrations of Credit Risk | |
Most of the Company's business activity is with customers located within the Dallas Metropolitan area. Such customers are normally also depositors of the Company. | |
The distribution of commitments to extend credit approximates the distribution of loans outstanding. Commercial and standby letters of credit were granted primarily to commercial borrowers. | |
The contractual amounts of credit related financial instruments such as commitments to extend credit, credit card arrangements, and letters of credit represent the amounts of potential accounting loss should the contract be fully drawn upon, the customer default, and the value of any existing collateral become worthless. | |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions | |
Related Party Transactions | |
21. Related Party Transactions | |
In the ordinary course of business, the Company has and expects to continue to have transactions, including borrowings, with its employees, officers, directors and their affiliates. In the opinion of management, such transactions are on the same terms, including interest rates and collateral requirements, as those prevailing at the time for comparable transactions with unaffiliated persons. The aggregate amounts of such loans were approximately $11,353 and $16,703 as of December 31, 2014 and 2013, respectively. During the year ended December 31, 2014, new advances of approximately $2,745 were made with approximately $8,095 principal payments received. During the year ended December 31, 2013, new advances of approximately $7,102 were made with approximately $8,787 principal payments received. There were $228 and $1,398 in unfunded commitments to related parties as of December 31, 2014 and 2013, respectively. | |
Deposits received from related parties as of December 31, 2014 and 2013 totaled approximately $17,303 and $15,511, respectively. | |
As disclosed in Note 12, the Company issued $5,000 in subordinated notes to two entities controlled by a certain affiliate of the Company. | |
Preferred_Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2014 | |
Preferred Stock | |
Preferred Stock | |
22. Preferred Stock | |
On August 25, 2011, the Company entered into a Small Business Lending Fund-Securities Purchase Agreement (SBLF Purchase Agreement) with the Secretary of the Treasury, pursuant to which the Company (i) sold 8,000 shares of the Company's Senior Non-Cumulative Perpetual Preferred Stock, Series C (the SBLF Preferred Stock) to the Secretary of the Treasury for a purchase price of $8,000. The issuance was pursuant to the SBLF program, a fund established under the Small Business Jobs Act of 2010 that was created to encourage lending to small business by providing capital to qualified community banks. | |
The SBLF Preferred Stock qualifies as Tier 1 capital and pays non- cumulative dividends quarterly, on each January 1, April 1, July 1 and October 1. The dividend rate, as a percentage of the liquidation amount, can fluctuate on a quarterly basis during the first 10 quarters during which the SBLF Preferred Stock is outstanding, based upon changes in the level of "Qualified Small Business Lending" or "QBSL" (as defined in the SBLF Purchase Agreement) by the Bank. Based upon the increase in the Bank's level of QBSL over the baseline level calculated under the terms of the SBLF Purchase Agreement, the dividend rate for the initial dividend period for the Company was set at 1.00%. For the tenth calendar quarter through four and one half years after issuance, the dividend rate will be fixed and as of December 31, 2014 was set at one percent (1%) based upon the increase in QBSL as compared to the baseline. After four and one half years from issuance, the dividend rate will increase to 9% (including a quarterly lending incentive fee of 0.5%). | |
The SBLF Preferred Stock is non-voting, except in limited circumstances. In the event that the Company misses five dividend payments, whether or not consecutive, the holder of the SBLF Preferred Stock will have the right, but not the obligation, to appoint a representative as an observer on the Company's Board of Directors. The right expires when full dividends have been paid for four consecutive dividend periods. The SBLF Preferred Stock may be redeemed at any time at the Company's option, at a redemption price of 100% of the liquidation amount of $1,000 per share plus accrued but unpaid dividends to the date of redemption for the current period, subject to the approval of its federal banking regulator. | |
Capital_Requirements_and_Restr
Capital Requirements and Restrictions on Retained Earnings | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Capital Requirements and Restrictions on Retained Earnings | ||||||||||||||||||||||||||||
Capital Requirements and Restrictions on Retained Earnings | ||||||||||||||||||||||||||||
23. Capital Requirements and Restrictions on Retained Earnings | ||||||||||||||||||||||||||||
Under banking law, there are legal restrictions limiting the amount of dividends the Company can declare. Approval of the regulatory authorities is required if the effect of the dividends declared would cause regulatory capital of the Company to fall below specified minimum levels. | ||||||||||||||||||||||||||||
The Bank is subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank's assets, liabilities, and certain off balance sheet items as calculated under regulatory accounting practices. The Bank's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. | ||||||||||||||||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital (as defined in the regulations) to risk weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined). Management believes, as of December 31, 2014 and 2013 that the Bank met all capital adequacy requirements to which it was subject. | ||||||||||||||||||||||||||||
As of December 31, 2014 and 2013, the Bank's capital ratios exceeded those levels necessary to be categorized as "well capitalized" under the regulatory framework for prompt corrective action. To be categorized as "well capitalized", the Bank must maintain minimum total risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table. There are no conditions or events since December 31, 2014 that management believes have changed the Bank's category. | ||||||||||||||||||||||||||||
A comparison of the Company's and Bank's actual capital amounts and ratios to required capital amounts and ratios is presented in the following table: | ||||||||||||||||||||||||||||
Actual | For Capital | To Be Well | ||||||||||||||||||||||||||
Adequacy Purposes | Capitalized Under | |||||||||||||||||||||||||||
Prompt Corrective | ||||||||||||||||||||||||||||
Action Provisions | ||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||
As of December 31, 2014: | ||||||||||||||||||||||||||||
Total capital (to risk weighted assets) | ||||||||||||||||||||||||||||
Company | $ | 107,197 | 17.22 | % | | $ | 49,814 | | 8.0 | % | | N/A | | N/A | ||||||||||||||
Bank | $ | 79,616 | 12.79 | % | | $ | 49,788 | | 8.0 | % | | $ | 62,235 | | 10.0 | % | ||||||||||||
Tier 1 capital (to risk weighted assets) | ||||||||||||||||||||||||||||
Company | $ | 96,236 | 15.46 | % | | $ | 24,907 | | 4.0 | % | | N/A | | N/A | ||||||||||||||
Bank | $ | 73,635 | 11.83 | % | | $ | 24,894 | | 4.0 | % | | $ | 37,341 | | 6.0 | % | ||||||||||||
Tier 1 capital (to average assets) | ||||||||||||||||||||||||||||
Company | $ | 96,236 | 12.66 | % | | $ | 30,400 | | 4.0 | % | | N/A | | N/A | ||||||||||||||
Bank | $ | 73,635 | 9.69 | % | | $ | 30,386 | | 4.0 | % | | $ | 37,983 | | 5.0 | % | ||||||||||||
As of December 31, 2013: | ||||||||||||||||||||||||||||
Total capital (to risk weighted assets) | ||||||||||||||||||||||||||||
Company | $ | 59,100 | 11.74 | % | | $ | 40,288 | | 8.0 | % | | N/A | | N/A | ||||||||||||||
Bank | $ | 57,275 | 11.37 | % | | $ | 40,296 | | 8.0 | % | | $ | 50,370 | | 10.0 | % | ||||||||||||
Tier 1 capital (to risk weighted assets) | ||||||||||||||||||||||||||||
Company | $ | 49,103 | 9.75 | % | | $ | 20,144 | | 4.0 | % | | N/A | | N/A | ||||||||||||||
Bank | $ | 52,257 | 10.37 | % | | $ | 20,148 | | 4.0 | % | | $ | 30,222 | | 6.0 | % | ||||||||||||
Tier 1 capital (to average assets) | ||||||||||||||||||||||||||||
Company | $ | 49,103 | 8.06 | % | | $ | 24,373 | | 4.0 | % | | N/A | | N/A | ||||||||||||||
Bank | $ | 52,257 | 8.58 | % | | $ | 24,369 | | 4.0 | % | | $ | 30,461 | | 5.0 | % | ||||||||||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events | |
Subsequent Events | |
24. Subsequent Events | |
On March 9, 2015, The Company entered into a definitive merger agreement with IBT Bancorp, Inc. ("IBT"), the parent holding company of Independent Bank of Texas ("Independent Bank"), headquartered in Irving, Texas. Independent Bank operates two banking locations in the Dallas metropolitan area. At December 31, 2014, IBT had total assets of approximately $121 million, total loans of approximately $99 million and total deposits of approximately $104 million. Under the terms of the agreement, which has been unanimously approved by the boards of directors of both companies, the Company will issue 1,185,185 shares of common stock plus $4.0 million in cash in exchange for all of the outstanding shares of IBT capital stock, subject to certain conditions and potential adjustments. Upon the closing of the transaction, Independent Bank will merge with and into Veritex Community Bank. Completion of the transaction is subject to certain closing conditions, including receipt of IBT shareholder approval and customary regulatory approvals. The transaction is expected to close late in the third quarter of 2015. | |
Parent_Company_Only_Financial_
Parent Company Only Financial Statements | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Parent Company Only Financial Statements | ||||||||
Parent Company Only Financial Statements | ||||||||
25. Parent Company Only Financial Statements | ||||||||
The following balance sheets, statements of income and statements of cash flows for Veritex Holdings, Inc. should be read in conjunction with the consolidated financial statements and the notes thereto. | ||||||||
Balance Sheets | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Assets | ||||||||
Cash and cash equivalents | $ | 27,399 | $ | 2,018 | ||||
Investment in subsidiaries | 93,897 | 72,579 | ||||||
Other assets | 232 | 300 | ||||||
| | | | | | | | |
Total assets | $ | 121,528 | $ | 74,897 | ||||
| | | | | | | | |
| | | | | | | | |
Liabilities and Stockholders' Equity | ||||||||
Other liabilities | $ | 142 | $ | 586 | ||||
Other borrowings | 8,074 | 8,072 | ||||||
| | | | | | | | |
Total liabilities | 8,216 | 8,658 | ||||||
| | | | | | | | |
Stockholders' equity | ||||||||
Preferred stock | 8,000 | 8,000 | ||||||
Common stock | 95 | 58 | ||||||
Additional paid-in capital | 97,469 | 55,303 | ||||||
Retained earnings | 8,047 | 2,922 | ||||||
Unallocated Employee Stock Ownership Plan Shares | (401 | ) | — | |||||
Treasury stock | (70 | ) | (70 | ) | ||||
Accumulated other comprehensive income | 172 | 26 | ||||||
| | | | | | | | |
Total stockholders' equity | 113,312 | 66,239 | ||||||
| | | | | | | | |
Total liabilities and stockholders' equity | $ | 121,528 | $ | 74,897 | ||||
| | | | | | | | |
| | | | | | | | |
Statements of Income | ||||||||
Years Ended December 31, | ||||||||
2014 | 2013 | |||||||
Interest income: | ||||||||
Other | $ | 2 | $ | 2 | ||||
Interest expense: | ||||||||
Interest on borrowings | 379 | 63 | ||||||
| | | | | | | | |
Net interest expense | (377 | ) | (61 | ) | ||||
Noninterest expense: | ||||||||
Salaries and employee benefits | 162 | 162 | ||||||
Professional fees | 212 | 76 | ||||||
Other | 17 | — | ||||||
| | | | | | | | |
Total noninterest expense | 391 | 238 | ||||||
| | | | | | | | |
Loss before income tax benefit and equity in undistributed | ||||||||
Income of subsidiaries | (768 | ) | (299 | ) | ||||
Income tax benefit | (256 | ) | (102 | ) | ||||
| | | | | | | | |
(Loss) Income before equity in undistributed income of subsidiaries | (512 | ) | (197 | ) | ||||
Equity in undistributed income of subsidiaries | 5,717 | 3,605 | ||||||
| | | | | | | | |
Net income | $ | 5,205 | $ | 3,408 | ||||
| | | | | | | | |
| | | | | | | | |
Statements of Cash Flows | ||||||||
Years Ended December 31, | ||||||||
2014 | 2013 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 5,205 | $ | 3,408 | ||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||||||
Amortization of debt costs | 2 | — | ||||||
Equity in undistributed net income of Bank | (5,717 | ) | (3,605 | ) | ||||
Decrease in other assets | 68 | 389 | ||||||
(Decrease) increase in other liabilities | (444 | ) | 580 | |||||
| | | | | | | | |
Net cash (used in) provided by operating activities | (886 | ) | 772 | |||||
| | | | | | | | |
Cash flows from investing activities: | ||||||||
Capital investment in subsidiaries | (15,000 | ) | (6,000 | ) | ||||
| | | | | | | | |
Net cash used in investing activities | (15,000 | ) | (6,000 | ) | ||||
| | | | | | | | |
Cash flows from financing activities: | ||||||||
Sale of common stock in initial public offering, net of offering cost of $4,574 | 35,791 | — | ||||||
Proceeds from issuance of common stock, net | 5,438 | 1,210 | ||||||
Purchase of common stock held in treasury | — | (70 | ) | |||||
Proceeds from Payments on ESOP Loan | 118 | — | ||||||
Dividends paid on preferred stock | (80 | ) | (60 | ) | ||||
Issuance of subordinated notes | — | 5,000 | ||||||
| | | | | | | | |
Net cash provided by financing activities | 41,267 | 6,080 | ||||||
| | | | | | | | |
Net increase in cash and cash equivalents | 25,381 | 852 | ||||||
Cash and cash equivalents at beginning of year | 2,018 | 1,166 | ||||||
| | | | | | | | |
Cash and cash equivalents at end of year | $ | 27,399 | $ | 2,018 | ||||
| | | | | | | | |
| | | | | | | | |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Summary of Significant Accounting Policies | |||||||||||
Basis of Presentation | |||||||||||
Basis of Presentation | |||||||||||
The accompanying consolidated financial statements include the accounts of Veritex and its wholly-owned subsidiary, Veritex Community Bank, formerly known as Veritex Community Bank, National Association. | |||||||||||
The accounting principles followed by the Company and the methods of applying them are in conformity with U.S. generally accepted accounting principles and prevailing practices of the banking industry. | |||||||||||
All material intercompany transactions have been eliminated in consolidation. | |||||||||||
Segment Reporting | Segment Reporting: | ||||||||||
The Company has one reportable segment. The Company's chief operating decision-maker, the CEO, uses consolidated results to make operating and strategic decisions. | |||||||||||
Initial Public Offering (IPO) | |||||||||||
Initial Public Offering (IPO): | |||||||||||
The Company qualifies as an "emerging growth company" as defined by the Jumpstart Our Business Startups Act (JOBS Act). In Q2 2014, the Board of Directors of the Company approved a resolution for Veritex to sell shares of common stock to the public in an initial public offering. On July 22, 2014, the Company submitted a confidential draft Registration Statement on Form S-1 with the SEC with respect to the shares to be registered and sold. On August 29, 2014, the Company filed a Registration Statement on Form S-1 with the SEC. That Registration Statement was declared effective by the SEC on October 8, 2014. The Company sold and issued 3,105,000 shares of common stock at $13 per share in reliance on that Registration Statement. Total proceeds received by the Company, net of offering costs were approximately $36 million. | |||||||||||
In connection with the initial public offering, on September 22, 2014, the Company amended its certificate of formation to authorize the issuance of up to 75,000,000 shares of common stock, par value $0.01 per share, and 10,000,000 shares of preferred stock, par value $1.00 per share, of which 8,000 shares are designated as Series C preferred stock. The authorized but unissued shares of capital stock are available for future issuance without shareholder approval, unless otherwise required by applicable law or the rules of any applicable securities exchange. | |||||||||||
Use of Estimates | Use of Estimates | ||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Actual results could differ from those estimates. The allowance for loan losses, the fair values of financial instruments, including investment securities available for sale and loans held for sale, and the status of contingencies are particularly susceptible to significant change in the near term. | |||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents | ||||||||||
For the purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks and federal funds sold. | |||||||||||
The Bank maintains deposits with other financial institutions in amounts that exceed federal deposit insurance coverage. Furthermore, federal funds sold are essentially uncollateralized loans to other financial institutions. Management regularly evaluates the credit risk associated with the counterparties to these transactions and believes that the Company is not exposed to any significant credit risks on cash and cash equivalents. | |||||||||||
Restrictions on cash | Restrictions on cash | ||||||||||
The Bank is required to maintain regulatory reserve balances with the Federal Reserve Bank. The reserve balances required as of December 31, 2014 and 2013 were approximately $23,365 and $15,325, respectively. | |||||||||||
Investment Securities | Investment Securities | ||||||||||
Securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them until maturity. Securities to be held for indefinite periods of time are classified as available for sale and carried at fair value, with the unrealized holding gains and losses reported in other comprehensive income, net of tax. Management determines the appropriate classification of securities at the time of purchase. | |||||||||||
Interest income includes amortization of purchase premiums and discounts. Realized gains and losses are derived from the amortized cost of the security sold. Credit related declines in the fair value of available for sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses, with the remaining unrealized loss recognized as a component of other comprehensive income. In estimating other-than-temporary impairment losses, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, and (iii) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. | |||||||||||
Loans Held for Sale | |||||||||||
Loans Held for Sale | |||||||||||
Loans held for sale consist of certain mortgage loans originated and intended for sale in the secondary market and are carried at the lower of cost or estimated fair value on an individual loan basis. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. The Company obtains commitments to purchase the loans from the secondary market investors prior to closing of the loans. Loans held for sale are sold with servicing released. Gains and losses on sales of loans held for sale are based on the difference between the selling price and the carrying value of the related loan sold. | |||||||||||
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses | ||||||||||
Loans, excluding certain purchased loans which have shown evidence of deterioration since origination as of the date of the acquisition, that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are stated at the amount of unpaid principal, reduced by fees associated with the originating of loans and an allowance for loan losses. Interest on loans is recognized using the effective-interest method on the daily balances of the principal amounts outstanding. Fees associated with the originating of loans and certain direct loan origination costs are netted and the net amount is deferred and recognized over the life of the loan as an adjustment of yield. | |||||||||||
The accrual of interest on loans is discontinued when there is a clear indication that the borrower's cash flow may not be sufficient to meet payments as they become due, which is generally no later than when a loan is 90 days past due. When a loan is placed on non-accrual status, all previously accrued and unpaid interest is reversed. Interest income is subsequently recognized on a cash basis as long as the remaining book balance of the asset is deemed to be collectible. If collectability is questionable, then cash payments are applied to principal. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured in accordance with the terms of the loan agreement. | |||||||||||
The allowance for loan losses is an estimated amount management believes is adequate to absorb inherent losses on existing loans that may be uncollectible based upon review and evaluation of the loan portfolio. Management's periodic evaluation of the allowance is based on general economic conditions, the financial condition of borrowers, the value and liquidity of collateral, delinquency, prior loan loss experience, and the results of periodic reviews of the portfolio. The allowance for loan losses is comprised of two components: the general reserve and specific reserves. The general reserve is determined in accordance with current authoritative accounting guidance that considers historical loss rates for the last three years adjusted for qualitative factors based upon general economic conditions and other qualitative risk factors both internal and external to the Company. Such qualitative factors include current local economic conditions and trends including unemployment, changes in lending staff, policies and procedures, changes in credit concentrations, changes in the trends and severity of problem loans and changes in trends in volume and terms of loans. These qualitative factors serve to compensate for additional areas of uncertainty inherent in the portfolio that are not reflected in the Company's historic loss factors. For purposes of determining the general reserve, the loan portfolio, less cash secured loans, government guaranteed loans and impaired loans, is multiplied by the Company's adjusted historical loss rate. Specific reserves are determined in accordance with current authoritative accounting guidance based on probable losses on specific classified loans. | |||||||||||
The allowance for loan losses is increased by charges against income and decreased by charge-offs (net of recoveries). | |||||||||||
Due to the growth of the Bank over the past several years, a portion of the loans in its portfolio and its lending relationships are of relatively recent origin. The new loan portfolios have limited delinquency and credit loss history and have not yet exhibited an observable loss trend. The credit quality of loans in theses loan portfolios are impacted by delinquency status and debt service coverage generated by the borrowers' business and fluctuations in the value of real estate collateral. Management considers delinquency status to be the most meaningful indicator of the credit quality of one-to-four single family residential, home equity loans and lines of credit and other consumer loans. In general, loans do not begin to show signs of credit deterioration or default until they have been outstanding for some period of time, a process we refer to as "seasoning." As a result, a portfolio of older loans will usually behave more predictably than a portfolio of newer loans. Because the majority of the portfolio is relatively new, the current level of delinquencies and defaults may not be representative of the level that will prevail when the portfolio becomes more seasoned, which may be higher than current levels. | |||||||||||
Delinquency statistics are updated at least monthly. Internal risk ratings are considered the most meaningful indicator of credit quality for new commercial, construction, and commercial real estate loans. Internal risk ratings are a key factor in identifying loans that are individually evaluated for impairment and impact management's estimates of loss factors used in determining the amount of the allowance for loan losses. Internal risk ratings are updated on a continuous basis. | |||||||||||
Loans are considered impaired when, based on current information and events, it is probable the Company will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. If a loan is impaired, a specific valuation allowance is allocated, if necessary. Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. Impaired loans, or portions thereof, are charged off when deemed uncollectible. | |||||||||||
The Company's policy requires measurement of the allowance for an impaired collateral dependent loan based on the fair value of the collateral. Other loan impairments are measured based on the present value of expected future cash flows or the loan's observable market price. At December 31, 2014 and 2013, all significant impaired loans have been determined to be collateral dependent and the allowance for loss has been measured utilizing the estimated fair value of the collateral. | |||||||||||
From time to time, the Company modifies its loan agreement with a borrower. A modified loan is considered a troubled debt restructuring when two conditions are met: (i) the borrower is experiencing financial difficulty and (ii) concessions are made by the Company that would not otherwise be considered for a borrower with similar credit risk characteristics. Modifications to loan terms may include a lower interest rate, a reduction of principal, or a longer term to maturity. All troubled debt restructurings are considered impaired loans. The Company reviews each troubled debt restructured loan and determines on a case by case basis if a specific allowance for loan loss is required. An allowance for loan loss allocation is based on either the present value of estimated future cash flows or the estimated fair value of the underlying collateral. | |||||||||||
The Company has certain lending policies and procedures in place that are designed to maximize loan income with an acceptable level of risk. Management reviews and approves these policies and procedures on a regular basis and makes changes as appropriate. Management receives frequent reports related to loan originations, quality, concentrations, delinquencies, non-performing and potential problem loans. Diversification in the loan portfolio is a means of managing risk associated with fluctuations in economic conditions, both by type of loan and geography. | |||||||||||
Commercial loans are underwritten after evaluating and understanding the borrower's ability to operate profitably and effectively. Underwriting standards are designed to determine whether the borrower possesses sound business ethics and practices and to evaluate current and projected cash flows to determine the ability of the borrower to repay their obligations as agreed. Commercial loans are primarily made based on the identified cash flows of the borrower and, secondarily, on the underlying collateral provided by the borrower. Most commercial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory, and include personal guarantees. | |||||||||||
Real estate loans are also subject to underwriting standards and processes similar to commercial loans. These loans are underwritten primarily based on projected cash flows and, secondarily, as loans secured by real estate. The repayment of real estate loans is generally largely dependent on the successful operation of the property securing the loans or the business conducted on the property securing the loan. Real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company's real estate portfolio are generally diverse in terms of type and geographic location, through the Dallas metropolitan area. This diversity helps reduce the exposure to adverse economic events that affect any single market or industry. | |||||||||||
The Company utilizes methodical credit standards and analysis to supplement its policies and procedures in underwriting consumer loans. The Company's loan policy addresses types of consumer loans that may be originated and the collateral, if secured, which must be perfected. The relatively smaller individual dollar amounts of consumer loans that are spread over numerous individual borrowers also minimizes the Company's risk. | |||||||||||
Certain Acquired Loans | |||||||||||
Certain Acquired Loans | |||||||||||
As part of business acquisitions, the Company evaluated each of the acquired loans under ASC 310-30 to determine whether (i) there was evidence of credit deterioration since origination, and (ii) it was probable that the Company would not collect all contractually required payments receivable. The Company determined the best indicator of such evidence was an individual loan's payment status and/or whether a loan was determined to be classified based on a review of each individual loan. Therefore, generally each individual loan that should have been or was on non-accrual at the acquisition date and each individual loan that was deemed impaired were included subject to ASC 310-30 accounting. These loans were recorded at the discounted expected cash flows of the individual loan. | |||||||||||
Loans which were evaluated under ASC 310-30, and where the timing and amount of cash flows can be reasonably estimated, were accounted for in accordance with ASC 310-30-35. The Company applies the interest method for these loans under this subtopic and the loans are excluded from non- accrual. If, at acquisition, the Company identified loans that they could not reasonably estimate cash flows or, if subsequent to acquisition, such cash flows could not be estimated, such loans would be included in non-accrual. These acquired loans are recorded at the allocated fair value, such that there is no carryover of the seller's allowance for loan losses. Such acquired loans are accounted for individually. The Company estimates the amount and timing of expected cash flows for each purchased loan, and the expected cash flows in excess of the allocated fair value is recorded as interest income over the remaining life of the loan (accretable yield). The excess of the loan's contractual principal and interest over expected cash flows is not recorded (non-accretable difference). Over the life of the loan, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded through the allowance for loan losses. If the present value of expected cash flows is greater than the carrying amount, any related allowance for loan loss is reversed, with the remaining yield being recognized prospectively through interest income. | |||||||||||
Transfers of Financial Assets | |||||||||||
Transfers of Financial Assets | |||||||||||
Transfers of financial assets (generally consisting of sales of loans held for sale and loan participations with unaffiliated banks) are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. | |||||||||||
Bank Premises and Equipment | Bank Premises and Equipment | ||||||||||
Buildings and improvements, furniture and equipment are carried at cost less accumulated depreciation computed using the straight-line method over the estimated useful lives of the respective assets as follows: | |||||||||||
Buildings and improvements | 10 - 40 years | ||||||||||
Leasehold improvements | Term of lease | ||||||||||
Furniture and equipment | 3 - 10 years | ||||||||||
Major replacements and betterments are capitalized while maintenance and repairs are charged to expense when incurred. Gains or losses on dispositions are reflected in operations as incurred. | |||||||||||
Non-Marketable Equity Securities | |||||||||||
Non-Marketable Equity Securities | |||||||||||
The Bank is a member of its regional Federal Reserve Bank (FRB) and of the Federal Home Loan Bank system (FHLB). FHLB members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. Both FRB and FHLB stock are carried at cost, restricted for sale, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. Other non-marketable equity securities are carried at cost which approximates fair value. | |||||||||||
Other Real Estate Owned | |||||||||||
Other Real Estate Owned | |||||||||||
Other real estate owned represents properties acquired through or in lieu of loan foreclosure and are initially recorded at fair value less estimated costs to sell. At foreclosure, if the fair value, less estimated costs to sell, of the real estate acquired is less than the Bank's recorded investment in the related loan, a write-down is recognized through a charge to the allowance for loan losses. Any subsequent reduction in value is recognized by a charge to income. Operating and holding expenses of such properties, net of related income, and gains and losses on their disposition are included in noninterest expense. | |||||||||||
Bank-Owned Life Insurance | Bank-Owned Life Insurance | ||||||||||
The Company has purchased life insurance policies on certain employees. These bank-owned life insurance (BOLI) policies are recorded in the accompanying consolidated balance sheets at their cash surrender values. Income from these policies and changes in the cash surrender values are recorded in other income in the accompanying consolidated statements of income. | |||||||||||
Goodwill and Intangible Assets | |||||||||||
Goodwill and Intangible Assets | |||||||||||
Goodwill resulting from a business combination represents the excess of the fair value of the consideration transferred over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill is not amortized but is reviewed for potential impairment annually on December 31 or when a triggering event occurs. The Company's goodwill test involves a two-step process. Under the first step, the estimation of fair value of the reporting unit is compared to its carrying value including goodwill. If step one indicates a potential impairment, the second step is performed to measure the amount of impairment, if any. If the carrying amount of the reporting goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. Any such adjustments are reflected in the results of operations in the periods in which they become known. Intangible assets consist of core deposit intangibles and other intangible assets related to operating leases with favorable market terms acquired in business combinations. Intangible assets are initially recognized based on a valuation performed as of the acquisition date. Core deposit intangibles are being amortized on a straight-line basis over the estimated useful lives of seven to nine years. Intangible assets related to operating leases are amortized over the remaining life of the acquired lease using the straight-line method. All indefinite lived intangible assets are tested annually for potential impairment or when triggering events occur. Intangible assets with definite lives are tested for impairment when a triggering event occurs. No impairment charges were recorded during the years ended December 31, 2014, 2013 and 2012. | |||||||||||
Advertising | Advertising | ||||||||||
Advertising consists of the Company's advertising in its local market. Advertising is expensed as incurred. | |||||||||||
Income Taxes | |||||||||||
Income Taxes | |||||||||||
The Company files a consolidated income tax return with its subsidiary. Federal income tax expense or benefit is allocated on a separate return basis. | |||||||||||
The Company accounts for income taxes using the asset and liability approach for financial accounting and reporting. Deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Realization of deferred tax assets is dependent upon the generation of a sufficient level of future taxable income and recoverable taxes paid in prior years. | |||||||||||
The Company may recognize the tax benefit of an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements would be the benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. For the years ended December 31, 2014 and 2013, management has determined there are no material uncertain tax positions. | |||||||||||
When necessary, the Company would include interest assessed by taxing authorities in "Interest expense" and penalties related to income taxes in "Other expense" on its consolidated statements of income. The Company did not record any interest or penalties related to income tax for the years ended December 31, 2014 and 2013. With few exeptions, the Company is no longer subject to U.S. federal income tax examinations by tax authorities for the years before 2011. | |||||||||||
Fair Values of Financial Instruments | |||||||||||
Fair Values of Financial Instruments | |||||||||||
Fair values of financial instruments are estimated using relevant market information and other assumptions. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. The fair value estimates of existing on and off-balance sheet financial instruments do not include the value of anticipated future business or the value of assets and liabilities not considered financial instruments. | |||||||||||
Stock Based Compensation | |||||||||||
Stock Based Compensation | |||||||||||
Compensation cost is recognized for stock options and stock awards issued to employees and directors, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company's common stock at the date of grant is used for stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. | |||||||||||
Treasury Stock | |||||||||||
Treasury Stock | |||||||||||
Treasury stock is stated at cost, which is determined by the first-in, first-out method. | |||||||||||
Comprehensive Income | |||||||||||
Comprehensive Income | |||||||||||
Comprehensive income includes all changes in stockholders' equity during a period, except those resulting from transactions with stockholders. In addition to net income, comprehensive income includes the net effect of changes in the fair value of securities available for sale, net of tax. Comprehensive income is reported in the accompanying consolidated statements of comprehensive income. | |||||||||||
ESOP | ESOP | ||||||||||
Effective January 1, 2012, the Company adopted an Employee Stock Ownership Plan (ESOP) covering all employees that meet certain age and service requirements. Plan assets are held and managed by the Company. Shares of the Company's common stock purchased by the Veritex Community Bank Employee Stock Ownership Plan (ESOP) are held in a suspense account until released for allocation to participants. Shares released are allocated to each eligible participant based on the participant's 401(k) contribution made during that year. Compensation expense is measured based upon the expected amount of the Company's discretionary contribution which is determined on an annual basis and is accrued ratably over the year. Shares are committed to be released to settle the liability upon formal declaration of the contribution at the end of the year. The number of shares released to settle the liability is based upon fair value of the shares as of the end of the year and become outstanding shares for earnings per share computations. The cost of shares issued to the ESOP, but not yet committed to be released, is shown as a reduction of stockholders' equity. To the extent that the fair value of the ESOP shares differs from the cost of such shares, the difference is charged or credited to stockholders' equity as additional paid in capital. Shares become outstanding for earnings per share computations upon allocation. Dividends on allocated ESOP shares are charged to retained earnings and paid to participants of the ESOP. | |||||||||||
Earnings Per Share | Earnings Per Share | ||||||||||
Earnings per share (EPS) are based upon the weighted-average shares outstanding. The table below sets forth the reconciliation between weighted average shares used for calculating basic and diluted EPS for the years ended December 31, 2014, 2013 and 2012: | |||||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Earnings (numerator) | |||||||||||
Net income for common stockholders | $ | 5,205 | $ | 3,408 | $ | 1,479 | |||||
Less: preferred stock dividends | 80 | 60 | 100 | ||||||||
| | | | | | | | | | | |
Net income allocated to common stockholders | $ | 5,125 | $ | 3,348 | $ | 1,379 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Shares (denominator) | |||||||||||
Weighted average shares outstanding for basic EPS (thousands) | 6,992 | 5,788 | 5,641 | ||||||||
Dilutive effect of employee stock-based awards | 161 | 61 | 37 | ||||||||
| | | | | | | | | | | |
Adjusted weighted average shares outstanding | 7,153 | 5,849 | 5,678 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Earnings per share: | |||||||||||
Basic | $ | 0.73 | $ | 0.58 | $ | 0.24 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Diluted | $ | 0.72 | $ | 0.57 | $ | 0.24 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
For the years ended December 31, 2013 and 2012, the Company excluded from diluted EPS weighted average shares of performance stock options representing the right to purchase 423,000 and 419,000 shares, respectively, of the Company's common stock because the issuance of shares related to these options is contingent upon the satisfaction of certain conditions unrelated to earnings or market value and these conditions were not met. In addition, for the year ended December 31, 2013, the Company excluded from diluted EPS weighted average warrants representing the right to purchase 1,000 shares of the Company's common stock because the effect was anti-dilutive. | |||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policy (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Summary of Significant Accounting Policies | |||||||||||
Schedule of estimated lives of the respective assets | |||||||||||
Buildings and improvements | 10 - 40 years | ||||||||||
Leasehold improvements | Term of lease | ||||||||||
Furniture and equipment | 3 - 10 years | ||||||||||
Schedule of reconciliation between weighted average shares used for calculating basic and diluted EPS | |||||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Earnings (numerator) | |||||||||||
Net income for common stockholders | $ | 5,205 | $ | 3,408 | $ | 1,479 | |||||
Less: preferred stock dividends | 80 | 60 | 100 | ||||||||
| | | | | | | | | | | |
Net income allocated to common stockholders | $ | 5,125 | $ | 3,348 | $ | 1,379 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Shares (denominator) | |||||||||||
Weighted average shares outstanding for basic EPS (thousands) | 6,992 | 5,788 | 5,641 | ||||||||
Dilutive effect of employee stock-based awards | 161 | 61 | 37 | ||||||||
| | | | | | | | | | | |
Adjusted weighted average shares outstanding | 7,153 | 5,849 | 5,678 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Earnings per share: | |||||||||||
Basic | $ | 0.73 | $ | 0.58 | $ | 0.24 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Diluted | $ | 0.72 | $ | 0.57 | $ | 0.24 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Investment_Securities_Table
Investment Securities (Table) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Investment Securities | ||||||||||||||||||||
Schedule of carrying amount and approximate fair values of available-for-sale securities | ||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||
Gains | Losses | |||||||||||||||||||
Available for Sale | ||||||||||||||||||||
U.S. government agencies | $ | 1,928 | $ | — | $ | 47 | $ | 1,881 | ||||||||||||
Corporate bonds | 500 | — | — | 500 | ||||||||||||||||
Municipal securities | 965 | 22 | — | 987 | ||||||||||||||||
Mortgage-backed securities | 28,588 | 256 | 73 | 28,771 | ||||||||||||||||
Collateralized mortgage obligations | 11,752 | 124 | 37 | 11,839 | ||||||||||||||||
Asset-backed securities | 1,134 | 15 | — | 1,149 | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
$ | 44,867 | $ | 417 | $ | 157 | $ | 45,127 | |||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
December 31, 2013 | ||||||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||
Gains | Losses | |||||||||||||||||||
Available for Sale | ||||||||||||||||||||
U.S. government agencies | $ | 2,019 | $ | — | $ | 95 | $ | 1,924 | ||||||||||||
Corporate bonds | 1,445 | 35 | — | 1,480 | ||||||||||||||||
Municipal securities | 934 | 24 | — | 958 | ||||||||||||||||
Mortgage-backed securities | 24,898 | 220 | 187 | 24,931 | ||||||||||||||||
Collateralized mortgage obligations | 14,898 | 158 | 141 | 14,915 | ||||||||||||||||
Asset-backed securities | 1,370 | 26 | — | 1,396 | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
$ | 45,564 | $ | 463 | $ | 423 | $ | 45,604 | |||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Schedule of investment securities that have been in a continuous unrealized loss position | ||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Totals | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
Value | Loss | Value | Loss | Value | Loss | |||||||||||||||
Available for Sale | ||||||||||||||||||||
U.S. government agencies | $ | — | $ | — | $ | 1,881 | $ | 47 | $ | 1,881 | $ | 47 | ||||||||
Mortgage-backed securities | 10,148 | 39 | 3,572 | 34 | 13,720 | 73 | ||||||||||||||
Collateralized mortgage obligations | 1,580 | 7 | 2,442 | 30 | 4,022 | 37 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
$ | 11,728 | $ | 46 | $ | 7,895 | $ | 111 | $ | 19,623 | $ | 157 | |||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
December 31, 2013 | ||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Totals | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
Value | Loss | Value | Loss | Value | Loss | |||||||||||||||
Available for Sale | ||||||||||||||||||||
U.S. government agencies | $ | 1,924 | $ | 95 | $ | — | $ | — | $ | 1,924 | $ | 95 | ||||||||
Mortgage-backed securities | 10,612 | 187 | — | — | 10,612 | 187 | ||||||||||||||
Collateralized mortgage obligations | 10,222 | 140 | 46 | 1 | 10,268 | 141 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
$ | 22,758 | $ | 422 | $ | 46 | $ | 1 | $ | 22,804 | $ | 423 | |||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Schedule of amortized costs and estimated fair values of securities available for sale, by contractual maturity | ||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||
Available For Sale | ||||||||||||||||||||
Amortized | Fair | |||||||||||||||||||
Cost | Value | |||||||||||||||||||
Due in one year or less | $ | 500 | $ | 500 | ||||||||||||||||
Due from one year to five years | 1,930 | 1,932 | ||||||||||||||||||
Due from five years to ten years | 963 | 936 | ||||||||||||||||||
Due after ten years | — | — | ||||||||||||||||||
| | | | | | | | |||||||||||||
3,393 | 3,368 | |||||||||||||||||||
Mortgage-backed securities | 28,588 | 28,771 | ||||||||||||||||||
Collateralized mortgage obligations | 11,752 | 11,839 | ||||||||||||||||||
Asset-backed securities | 1,134 | 1,149 | ||||||||||||||||||
| | | | | | | | |||||||||||||
$ | 44,867 | $ | 45,127 | |||||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
Schedule of proceeds from sales of investment securities available for sale and gross gains and losses | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Proceeds from sales | $ | 300,981 | $ | 120,000 | $ | 239,997 | ||||||||||||||
Gross realized gains | 34 | — | — | |||||||||||||||||
Gross realized losses | — | — | — | |||||||||||||||||
Loans_and_Allowance_for_Loan_L1
Loans and Allowance for Loan Losses (Table) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Loans and Allowance for Loan Losses | |||||||||||||||||||||||
Summary of loans | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction and land | $ | 69,966 | $ | 47,643 | |||||||||||||||||||
Farmland | 10,528 | 11,656 | |||||||||||||||||||||
1 - 4 family residential | 105,788 | 86,908 | |||||||||||||||||||||
Multi-family residential | 9,964 | 11,862 | |||||||||||||||||||||
Nonfarm nonresidential | 195,839 | 171,451 | |||||||||||||||||||||
Commercial | 207,101 | 160,823 | |||||||||||||||||||||
Consumer | 4,124 | 4,927 | |||||||||||||||||||||
| | | | | | | | ||||||||||||||||
603,310 | 495,270 | ||||||||||||||||||||||
| | | | | | | | ||||||||||||||||
Deferred loan fees | (51 | ) | (94 | ) | |||||||||||||||||||
Allowance for loan losses | (5,981 | ) | (5,018 | ) | |||||||||||||||||||
| | | | | | | | ||||||||||||||||
$ | 597,278 | $ | 490,158 | ||||||||||||||||||||
| | | | | | | | ||||||||||||||||
| | | | | | | | ||||||||||||||||
Schedule of non-accrual loans, excluding purchased credit impaired loans, aggregated by class of loans | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction and land | $ | — | $ | 76 | |||||||||||||||||||
Farmland | — | — | |||||||||||||||||||||
1 - 4 family residential | — | 1,041 | |||||||||||||||||||||
Multi-family residential | — | — | |||||||||||||||||||||
Nonfarm nonresidential | 375 | — | |||||||||||||||||||||
Commercial | 34 | — | |||||||||||||||||||||
Consumer | 27 | — | |||||||||||||||||||||
| | | | | | | | ||||||||||||||||
$ | 436 | $ | 1,117 | ||||||||||||||||||||
| | | | | | | | ||||||||||||||||
| | | | | | | | ||||||||||||||||
Schedule of age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | |||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||
30 to 59 | 60 to 89 | 90 Days | Total | Total | Total | Total 90 Days | |||||||||||||||||
Days | Days | or Greater | Past Due | Current | Loans | Past Due | |||||||||||||||||
and Still | |||||||||||||||||||||||
Accruing | |||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction and land | $ | 12 | $ | — | $ | 541 | $ | 553 | $ | 69,413 | $ | 69,966 | $ | — | |||||||||
Farmland | — | — | — | — | 10,528 | 10,528 | — | ||||||||||||||||
1 - 4 family residential | 512 | — | — | 512 | 105,276 | 105,788 | — | ||||||||||||||||
Multi-family residential | — | — | — | — | 9,964 | 9,964 | — | ||||||||||||||||
Nonfarm nonresidential | — | 375 | — | 375 | 195,464 | 195,839 | — | ||||||||||||||||
Commercial | 6 | 34 | — | 40 | 207,061 | 207,101 | — | ||||||||||||||||
Consumer | 26 | — | — | 26 | 4,098 | 4,124 | — | ||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
$ | 556 | $ | 409 | $ | 541 | $ | 1,506 | $ | 601,804 | $ | 603,310 | $ | — | ||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
December 31, 2013 | |||||||||||||||||||||||
30 to 59 | 60 to 89 | 90 Days | Total | Total | Total | Total 90 Days | |||||||||||||||||
Days | Days | or Greater | Past Due | Current | Loans | Past Due | |||||||||||||||||
and Still | |||||||||||||||||||||||
Accruing | |||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction and land | $ | 19 | $ | — | $ | 645 | $ | 664 | $ | 46,979 | $ | 47,643 | $ | — | |||||||||
Farmland | — | — | — | — | 11,656 | 11,656 | — | ||||||||||||||||
1 - 4 family residential | 168 | — | 1,041 | 1,209 | 85,699 | 86,908 | — | ||||||||||||||||
Multi-family residential | — | — | — | — | 11,862 | 11,862 | — | ||||||||||||||||
Nonfarm nonresidential | — | — | — | — | 171,451 | 171,451 | — | ||||||||||||||||
Commercial | 94 | — | — | 94 | 160,729 | 160,823 | — | ||||||||||||||||
Consumer | 34 | 9 | 9 | 52 | 4,875 | 4,927 | 9 | ||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
$ | 315 | $ | 9 | $ | 1,695 | $ | 2,019 | $ | 493,251 | $ | 495,270 | $ | 9 | ||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Summary of impaired loans, including purchased credit impaired loans | |||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||
Unpaid | Recorded | Recorded | Total | Related | Average | ||||||||||||||||||
Contractual | Investment | Investment | Recorded | Allowance | Recorded | ||||||||||||||||||
Principal | with No | With | Investment | Investment | |||||||||||||||||||
Balance | Allowance | Allowance | During Year | ||||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction and land | $ | 819 | $ | — | $ | 541 | $ | 541 | $ | 44 | $ | 611 | |||||||||||
Farmland | — | — | — | — | — | — | |||||||||||||||||
1 - 4 family residential | 168 | 168 | — | 168 | — | 205 | |||||||||||||||||
Multi-family residential | — | — | — | — | — | — | |||||||||||||||||
Nonfarm nonresidential | 1,086 | 1,086 | — | 1,086 | — | 980 | |||||||||||||||||
Commercial | 223 | 183 | 40 | 223 | 30 | 361 | |||||||||||||||||
Consumer | 38 | 8 | 30 | 38 | 13 | 44 | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
Total | $ | 2,334 | $ | 1,445 | $ | 611 | $ | 2,056 | $ | 87 | $ | 2,201 | |||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | | | | ||||
December 31, 2013 | |||||||||||||||||||||||
Unpaid | Recorded | Recorded | Total | Related | Average | ||||||||||||||||||
Contractual | Investment | Investment | Recorded | Allowance | Recorded | ||||||||||||||||||
Principal | with No | With | Investment | Investment | |||||||||||||||||||
Balance | Allowance | Allowance | During Year | ||||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction and land | $ | 971 | $ | 645 | $ | — | $ | 645 | $ | — | $ | 871 | |||||||||||
Farmland | — | — | — | — | — | — | |||||||||||||||||
1 - 4 family residential | 1,212 | 1,212 | — | 1,212 | — | 1,306 | |||||||||||||||||
Multi-family residential | — | — | — | — | — | — | |||||||||||||||||
Nonfarm nonresidential | 1,900 | 1,900 | — | 1,900 | — | 1,462 | |||||||||||||||||
Commercial | 366 | 366 | — | 366 | — | 366 | |||||||||||||||||
Consumer | 32 | 32 | — | 32 | — | 28 | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
Total | $ | 4,481 | $ | 4,155 | $ | — | $ | 4,155 | $ | — | $ | 4,033 | |||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | | | | ||||
Schedule of terms of certain loans that were modified as troubled debt restructurings | |||||||||||||||||||||||
2014 | |||||||||||||||||||||||
Post-Modification Outstanding Recorded Investment | |||||||||||||||||||||||
Number | Pre-Modification | Adjusted | Extended | Extended | Extended | ||||||||||||||||||
of Loans | Outstanding | Interest | Maturity | Maturity | Maturity, | ||||||||||||||||||
Recorded | Rate | and | Restructured | ||||||||||||||||||||
Investment | Restructured | Payments and | |||||||||||||||||||||
Payments | Adjusted | ||||||||||||||||||||||
Interest Rate | |||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Construction and land | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Farmland | — | — | — | — | — | — | |||||||||||||||||
1 - 4 family residential | — | — | — | — | — | — | |||||||||||||||||
Multi-family residential | — | — | — | — | — | — | |||||||||||||||||
Nonfarm nonresidential | — | — | — | — | — | — | |||||||||||||||||
Commercial | — | — | — | — | — | — | |||||||||||||||||
Consumer | 2 | 18 | 4 | 8 | — | — | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
Total | 2 | $ | 18 | $ | 4 | $ | 8 | $ | — | $ | — | ||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | | | | ||||
2013 | |||||||||||||||||||||||
Post-Modification Outstanding Recorded Investment | |||||||||||||||||||||||
Number | Pre-Modification | Adjusted | Extended | Extended | Extended | ||||||||||||||||||
of Loans | Outstanding | Interest | Maturity | Maturity | Maturity, | ||||||||||||||||||
Recorded | Rate | and | Restructured | ||||||||||||||||||||
Investment | Restructured | Payments and | |||||||||||||||||||||
Payments | Adjusted | ||||||||||||||||||||||
Interest Rate | |||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Construction and land | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Farmland | — | — | — | — | — | — | |||||||||||||||||
1 - 4 family residential | 2 | 1,203 | — | 1,051 | — | 171 | |||||||||||||||||
Multi-family residential | — | — | — | — | — | — | |||||||||||||||||
Nonfarm nonresidential | 1 | 1,180 | — | 1,180 | — | — | |||||||||||||||||
Commercial | 1 | 16 | — | — | 16 | — | |||||||||||||||||
Consumer | 1 | 6 | — | — | 6 | — | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
Total | 5 | $ | 2,405 | $ | — | $ | 2,231 | $ | 22 | $ | 171 | ||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | | | | ||||
Summary of internal ratings of loans, including purchased credit impaired loans | |||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||
Pass | Special | Substandard | Doubtful | Total | |||||||||||||||||||
Mention | |||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction and land | $ | 69,425 | $ | — | $ | 541 | $ | — | $ | 69,966 | |||||||||||||
Farmland | 10,528 | — | — | — | 10,528 | ||||||||||||||||||
1 - 4 family residential | 105,786 | — | 2 | — | 105,788 | ||||||||||||||||||
Multi-family residential | 9,964 | — | — | — | 9,964 | ||||||||||||||||||
Nonfarm nonresidential | 195,464 | — | 375 | — | 195,839 | ||||||||||||||||||
Commercial | 205,681 | 672 | 748 | — | 207,101 | ||||||||||||||||||
Consumer | 3,925 | — | 199 | — | 4,124 | ||||||||||||||||||
| | | | | | | | | | | | | | | | | |||||||
Total | $ | 600,773 | $ | 672 | $ | 1,865 | $ | — | $ | 603,310 | |||||||||||||
| | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | |||||||
December 31, 2013 | |||||||||||||||||||||||
Pass | Special | Substandard | Doubtful | Total | |||||||||||||||||||
Mention | |||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction and land | $ | 46,998 | $ | — | 645 | $ | — | $ | 47,643 | ||||||||||||||
Farmland | 11,656 | — | — | — | 11,656 | ||||||||||||||||||
1 - 4 family residential | 85,649 | — | 1,259 | — | 86,908 | ||||||||||||||||||
Multi-family residential | 11,862 | — | — | — | 11,862 | ||||||||||||||||||
Nonfarm nonresidential | 171,371 | — | 80 | — | 171,451 | ||||||||||||||||||
Commercial | 158,919 | 731 | 1,173 | — | 160,823 | ||||||||||||||||||
Consumer | 4,878 | 7 | 42 | — | 4,927 | ||||||||||||||||||
| | | | | | | | | | | | | | | | | |||||||
Total | $ | 491,333 | $ | 738 | $ | 3,199 | $ | — | $ | 495,270 | |||||||||||||
| | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | |||||||
Schedule of analysis of the allowance for loan losses | |||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||
Balance at beginning of year | $ | 5,018 | $ | 3,238 | $ | 1,012 | |||||||||||||||||
Provision charged to earnings | 1,423 | 1,883 | 2,953 | ||||||||||||||||||||
Charge-offs | (510 | ) | (240 | ) | (801 | ) | |||||||||||||||||
Recoveries | 50 | 137 | 74 | ||||||||||||||||||||
| | | | | | | | | | | |||||||||||||
Net charge-offs | (460 | ) | (103 | ) | (727 | ) | |||||||||||||||||
| | | | | | | | | | | |||||||||||||
Balance at end of year | $ | 5,981 | $ | 5,018 | $ | 3,238 | |||||||||||||||||
| | | | | | | | | | | |||||||||||||
| | | | | | | | | | | |||||||||||||
Summary of activity in the allowance for loan losses by class of loans | |||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||
Construction | Residential | Nonfarm | Commercial | Consumer | Total | ||||||||||||||||||
Land and | Non- | ||||||||||||||||||||||
Farmland | Residential | ||||||||||||||||||||||
Balance at beginning of year | $ | 660 | $ | 970 | $ | 1,726 | $ | 1,585 | $ | 77 | $ | 5,018 | |||||||||||
Provision charged to earnings | 137 | 226 | 162 | 909 | (11 | ) | 1,423 | ||||||||||||||||
Charge-offs | (28 | ) | (30 | ) | — | (448 | ) | (4 | ) | (510 | ) | ||||||||||||
Recoveries | — | — | 2 | 46 | 2 | 50 | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
Net charge-offs | (28 | ) | (30 | ) | 2 | (402 | ) | (2 | ) | (460 | ) | ||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
Balance at end of year | $ | 769 | $ | 1,166 | $ | 1,890 | $ | 2,092 | $ | 64 | $ | 5,981 | |||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | | | | ||||
Period-end amount allocated to: | |||||||||||||||||||||||
Specific reserves: | |||||||||||||||||||||||
Impaired loans | $ | 44 | $ | — | $ | — | $ | 30 | $ | 13 | $ | 87 | |||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
Total specific reserves | 44 | — | — | 30 | 13 | 87 | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
General reserves | 725 | 1,166 | 1,890 | 2,062 | 51 | 5,894 | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
Total | $ | 769 | $ | 1,166 | $ | 1,890 | $ | 2,092 | $ | 64 | $ | 5,981 | |||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | | | | ||||
December 31, 2013 | |||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||
Construction | Residential | Nonfarm | Commercial | Consumer | Total | ||||||||||||||||||
Land and | Non- | ||||||||||||||||||||||
Farmland | Residential | ||||||||||||||||||||||
Balance at beginning of year | $ | 455 | $ | 755 | $ | 1,028 | $ | 947 | $ | 53 | $ | 3,238 | |||||||||||
Provision charged to earnings | 205 | 240 | 698 | 716 | 24 | 1,883 | |||||||||||||||||
Charge-offs | — | (85 | ) | — | (110 | ) | (45 | ) | (240 | ) | |||||||||||||
Recoveries | — | 60 | — | 32 | 45 | 137 | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
Net charge-offs | — | (25 | ) | — | (78 | ) | — | (103 | ) | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
Balance at end of year | $ | 660 | $ | 970 | $ | 1,726 | $ | 1,585 | $ | 77 | $ | 5,018 | |||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | | | | ||||
Period-end amount allocated to: | |||||||||||||||||||||||
Specific reserves: | |||||||||||||||||||||||
Impaired loans | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
Total specific reserves | — | — | — | — | — | — | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
General reserves | 660 | 970 | 1,726 | 1,585 | 77 | 5,018 | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
Total | $ | 660 | $ | 970 | $ | 1,726 | $ | 1,585 | $ | 77 | $ | 5,018 | |||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | | | | ||||
Schedule of recorded investment in loans related to the balance in the allowance for loan losses on the basis of the Company's impairment methodology | |||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||
Construction | Residential | Nonfarm | Commercial | Consumer | Total | ||||||||||||||||||
Land and | Non- | ||||||||||||||||||||||
Farmland | Residential | ||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 541 | $ | 168 | $ | 1,086 | $ | 223 | $ | 38 | $ | 2,056 | |||||||||||
Loans collectively evaluated for impairment | 79,953 | 115,584 | 194,753 | 206,878 | 4,086 | 601,254 | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
Total | $ | 80,494 | $ | 115,752 | $ | 195,839 | $ | 207,101 | $ | 4,124 | $ | 603,310 | |||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | | | | ||||
December 31, 2013 | |||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||
Construction | Residential | Nonfarm | Commercial | Consumer | Total | ||||||||||||||||||
Land and | Non- | ||||||||||||||||||||||
Farmland | Residential | ||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 645 | $ | 1,212 | $ | 1,900 | $ | 366 | $ | 32 | $ | 4,155 | |||||||||||
Loans collectively evaluated for impairment | 58,654 | 97,558 | 169,551 | 160,457 | 4,895 | 491,115 | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
Total | $ | 59,299 | $ | 98,770 | $ | 171,451 | $ | 160,823 | $ | 4,927 | $ | 495,270 | |||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | | | | ||||
Schedule of outstanding balance and related carrying amount of certain acquired loans which experienced credit deterioration | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction and land: unpaid principal balance | $ | 819 | $ | 819 | |||||||||||||||||||
| | | | | | | | ||||||||||||||||
| | | | | | | | ||||||||||||||||
Carrying amount | $ | 541 | $ | 569 | |||||||||||||||||||
| | | | | | | | ||||||||||||||||
| | | | | | | | ||||||||||||||||
Schedule of carrying amounts of the loan accounted using the cost recovery method | |||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Loans at the end of the year | $ | 541 | $ | 569 | |||||||||||||||||||
Bank_Premises_and_Equipment_Ta
Bank Premises and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Bank Premises and Equipment. | ||||||||
Schedule of bank premises and equipment | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Building and improvements | $ | 2,672 | $ | 2,343 | ||||
Leasehold improvements | 2,942 | 2,873 | ||||||
Land | 5,181 | 3,609 | ||||||
Furniture, fixtures and equipment | 3,732 | 3,459 | ||||||
| | | | | | | | |
14,527 | 12,284 | |||||||
Less accumulated depreciation | 3,377 | 2,332 | ||||||
| | | | | | | | |
$ | 11,150 | $ | 9,952 | |||||
| | | | | | | | |
| | | | | | | | |
Nonmarketable_Equity_Securitie1
Non-marketable Equity Securities (Table) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Non-marketable Equity Securities. | ||||||||
Schedule of investments in non-marketable equity | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Federal Home Loan Bank of Dallas stock | $ | 1,907 | $ | 827 | ||||
Federal Reserve Bank of Dallas stock | 2,182 | 1,837 | ||||||
Other non-marketable equity securities | 50 | 50 | ||||||
| | | | | | | | |
$ | 4,139 | $ | 2,714 | |||||
| | | | | | | | |
| | | | | | | | |
Intangible_Assets_Table
Intangible Assets (Table) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Intangible Assets | |||||||||||||
Schedule of intangible assets | |||||||||||||
December 31, 2014 | |||||||||||||
Weighted | Gross | Accumulated | Net | ||||||||||
Amortization | Intangible | Amortization | Intangible | ||||||||||
Period | Asset | Asset | |||||||||||
Core deposit intangibles | 5.0 years | $ | 2,380 | $ | 1,170 | $ | 1,210 | ||||||
Other intangible assets | 4.9 years | 107 | 56 | 51 | |||||||||
| | | | | | | | | | | | | |
$ | 2,487 | $ | 1,226 | $ | 1,261 | ||||||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
December 31, 2013 | |||||||||||||
Weighted | Gross | Accumulated | Net | ||||||||||
Amortization | Intangible | Amortization | Intangible | ||||||||||
Period | Asset | Asset | |||||||||||
Core deposit intangibles | 6.0 years | $ | 2,380 | $ | 875 | $ | 1,505 | ||||||
Other intangible assets | 5.9 years | 107 | 45 | 62 | |||||||||
| | | | | | | | | | | | | |
$ | 2,487 | $ | 920 | $ | 1,567 | ||||||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Schedule of the estimated aggregate future amortization expense for intangible assets | The estimated aggregate future amortization expense for intangible assets remaining as of December 31, 2014 was as follows: | ||||||||||||
Year | Amount | ||||||||||||
2015 | 301 | ||||||||||||
2016 | 297 | ||||||||||||
2017 | 297 | ||||||||||||
2018 | 206 | ||||||||||||
2019 | 87 | ||||||||||||
Thereafter | 73 | ||||||||||||
| | | | | |||||||||
$ | 1,261 | ||||||||||||
| | | | | |||||||||
| | | | | |||||||||
Goodwill_Table
Goodwill (Table) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Goodwill. | ||||||||
Schedule of changes in the carrying amount of goodwill | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Beginning of year | $ | 19,148 | $ | 19,148 | ||||
Effect of acquisitions | — | — | ||||||
Impairment losses | — | — | ||||||
| | | | | | | | |
End of year | $ | 19,148 | $ | 19,148 | ||||
| | | | | | | | |
| | | | | | | | |
Deposits_Table
Deposits (Table) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deposits. | ||||||||
Schedule summarized of the deposits | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Noninterest-bearing demand accounts | $ | 251,124 | $ | 218,990 | ||||
Interest-bearing demand accounts | 57,556 | 40,178 | ||||||
Savings accounts | 6,101 | 5,286 | ||||||
Limited access money market accounts | 227,074 | 210,131 | ||||||
Certificates of deposit, greater than $100 | 79,517 | 81,478 | ||||||
Certificates of deposit, less than $100 | 17,371 | 17,875 | ||||||
| | | | | | | | |
$ | 638,743 | $ | 573,938 | |||||
| | | | | | | | |
| | | | | | | | |
Scheduled maturities of certificate of deposits | ||||||||
As of December 31, 2014, the scheduled maturities of certificates of deposit were as follows: | ||||||||
Year | Amount | |||||||
2015 | $ | 84,304 | ||||||
2016 | 6,322 | |||||||
2017 | 2,201 | |||||||
2018 | 2,361 | |||||||
2019 | 1,700 | |||||||
| | | | | ||||
$ | 96,888 | |||||||
| | | | | ||||
| | | | | ||||
Junior_Subordinated_Debentures1
Junior Subordinated Debentures and Subordinated Notes (Table) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Junior Subordinated Debentures and Subordinated Notes | ||||||||
Schedule of Junior subordinated debentures and subordinated notes | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Junior subordinated debentures—Trust Securities with a rate of LIBOR plus 1.85% debentures payable to Parkway National Capital Trust 1 with stated maturity of 2036 | $ | 3,093 | $ | 3,093 | ||||
| | | | | | | | |
| | | | | | | | |
Subordinated notes—unsecured notes with a fixed rate of 6% payable to entities of an affiliate with stated maturity of 2023 (less discount of $21—effective interest rate of 6.025%) | $ | 4,981 | $ | 4,979 | ||||
| | | | | | | | |
| | | | | | | | |
Income_Taxes_Table
Income Taxes (Table) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Income Taxes | |||||||||||
Components of provision for income taxes | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Income tax expense (benefit): | |||||||||||
Current | $ | 3,171 | $ | 2,491 | $ | 534 | |||||
Deferred | (466 | ) | (714 | ) | (398 | ) | |||||
| | | | | | | | | | | |
$ | 2,705 | $ | 1,777 | $ | 136 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of income tax expense and the effective tax rates | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Federal income tax expense rate at 34% | $ | 2,690 | $ | 1,763 | $ | 549 | |||||
Stock option expense | — | 76 | 58 | ||||||||
Bank-owned life insurance income | (118 | ) | (110 | ) | (52 | ) | |||||
Non-deductible dues and memberships | 50 | 48 | 44 | ||||||||
Non-deductible meals and entertainment | 43 | 24 | — | ||||||||
Change in valuation allowance | — | — | (518 | ) | |||||||
Other | 40 | (24 | ) | 55 | |||||||
| | | | | | | | | | | |
Total income tax expense | 2,705 | 1,777 | 136 | ||||||||
| | | | | | | | | | | |
Effective tax rate | 34.2 | % | 34.3 | % | 8.4 | % | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of significant components of the deferred tax assets and liabilities | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
Deferred tax assets: | |||||||||||
Net operating loss | $ | — | $ | 96 | |||||||
Organizational costs | 167 | 183 | |||||||||
Allowance for loan losses | 1,868 | 1,619 | |||||||||
Deferred loan fees | 18 | 32 | |||||||||
Non-accrual interest | 69 | 62 | |||||||||
Capital loss carryforward | 85 | 85 | |||||||||
ORE write down for book purposes | — | 55 | |||||||||
Deferred rent expenses | 66 | 70 | |||||||||
Restricted stock | 131 | 84 | |||||||||
Stock options | 73 | — | |||||||||
Accrued bonuses | 271 | 243 | |||||||||
Other | 137 | 134 | |||||||||
| | | | | | | | ||||
Total deferred tax assets | 2,885 | 2,663 | |||||||||
| | | | | | | | ||||
Deferred tax liabilities: | |||||||||||
Net unrealized gain on securities available for sale | 88 | 14 | |||||||||
Core deposit intangibles | 412 | 512 | |||||||||
FHLB stock dividends | 27 | 26 | |||||||||
Bank premises and equipment | 973 | 1,118 | |||||||||
| | | | | | | | ||||
Total deferred tax liabilities | 1,500 | 1,670 | |||||||||
| | | | | | | | ||||
Net deferred tax asset | $ | 1,385 | $ | 993 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Commitments_and_Contingencies_
Commitments and Contingencies (Table) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies | |||||
Schedule of minimum future rental payments under non-cancelable operating leases | Minimum future rental payments under these non-cancelable operating leases as of December 31, 2014 for each of the next five years and in the aggregate are: | ||||
Year Ended December 31, | Amount | ||||
2015 | $ | 955 | |||
2016 | 879 | ||||
2017 | 904 | ||||
2018 | 816 | ||||
2019 | 751 | ||||
Thereafter | 1717 | ||||
| | | | | |
$ | 6,022 | ||||
| | | | | |
| | | | | |
Other_Noninterest_Expense_Tabl
Other Non-interest Expense (Table) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Other Non-interest Expense | |||||||||||
Schedule of other non-interest expense | |||||||||||
Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Business development | $ | 446 | $ | 308 | $ | 235 | |||||
Office and postage | 240 | 216 | 304 | ||||||||
Director fees | 198 | 83 | 45 | ||||||||
Insurance | 92 | 99 | 95 | ||||||||
Security | 115 | 105 | 102 | ||||||||
Charitable contributions and dontations | 147 | 135 | 62 | ||||||||
Travel | 41 | 42 | 37 | ||||||||
Training | 45 | 34 | 26 | ||||||||
Other | 787 | 701 | 553 | ||||||||
| | | | | | | | | | | |
Total | $ | 2,111 | $ | 1,723 | $ | 1,459 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Fair_Value_Disclosures_Table
Fair Value Disclosures (Table) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Fair Value Disclosures | ||||||||||||||
Schedule of assets measured at fair value on a recurring basis | ||||||||||||||
Fair Value | ||||||||||||||
Measurements Using | ||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||
Inputs | Inputs | Inputs | Fair Value | |||||||||||
As of December 31, 2014: | ||||||||||||||
Investment securities available for sale | $ | — | $ | 45,127 | $ | — | $ | 45,127 | ||||||
As of December 31, 2013: | ||||||||||||||
Investment securities available for sale | $ | — | $ | 45,604 | $ | — | $ | 45,604 | ||||||
Schedule of assets measured at fair value on a non-recurring basis | ||||||||||||||
Fair Value | ||||||||||||||
Measurements Using | ||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||
Inputs | Inputs | Inputs | Fair Value | |||||||||||
As of December 31, 2014: | ||||||||||||||
Assets: | ||||||||||||||
Impaired loans | $ | — | $ | — | $ | 2,056 | $ | 2,056 | ||||||
Other real estate owned | $ | — | $ | — | $ | 50 | $ | 50 | ||||||
As of December 31, 2013: | ||||||||||||||
Assets: | ||||||||||||||
Impaired loans | $ | — | $ | — | $ | 4,155 | $ | 4,155 | ||||||
Other real estate owned | $ | — | $ | — | $ | 1,797 | $ | 1,797 | ||||||
Schedule of significant unobservable inputs used in the fair value measurements | ||||||||||||||
December 31, 2014 | ||||||||||||||
Assets/Liabilities | Fair Value | Valuation Technique | Unobservable Input(s) | Weighted | ||||||||||
Average | ||||||||||||||
Impaired loans | $ | 2,056 | Collateral Method | Adjustments for selling costs | 8 | % | ||||||||
Other real estate owned | $ | 50 | Collateral Method | Adjustments for selling costs | 8 | % | ||||||||
December 31, 2013 | ||||||||||||||
Assets/Liabilities | Fair Value | Valuation Technique | Unobservable Input(s) | Weighted | ||||||||||
Average | ||||||||||||||
Impaired loans | $ | 4,155 | Collateral Method | Adjustments for selling costs | 8 | % | ||||||||
Other real estate owned | $ | 1,797 | Collateral Method | Adjustments for selling costs | 8 | % | ||||||||
Schedule of estimated fair values and carrying values of all financial instruments | ||||||||||||||
December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||
Amount | Value | Amount | Value | |||||||||||
Financial assets: | ||||||||||||||
Level 2 inputs: | ||||||||||||||
Cash and cash equivalents | $ | 93,251 | $ | 93,251 | $ | 76,646 | $ | 76,646 | ||||||
Securities available for sale | 45,127 | 45,127 | 45,604 | 45,604 | ||||||||||
Loans held for sale | 8,858 | 8,858 | 2,051 | 2,051 | ||||||||||
Accrued interest receivable | 1,542 | 1,542 | 1,351 | 1,351 | ||||||||||
Bank-owned life insurance | 17,822 | 17,822 | 10,475 | 10,475 | ||||||||||
Non-marketable equity securities | 4,139 | 4,139 | 2,714 | 2,714 | ||||||||||
Level 3 inputs: | ||||||||||||||
Loans, net | 597,278 | 596,138 | 490,158 | 490,344 | ||||||||||
Financial liabilities: | ||||||||||||||
Level 2 inputs: | ||||||||||||||
Deposits | $ | 638,743 | $ | 630,402 | $ | 573,938 | $ | 568,451 | ||||||
Advances from FHLB | 40,000 | 40,028 | 15,000 | 15,055 | ||||||||||
Accrued interest payable | 126 | 126 | 134 | 134 | ||||||||||
Junior subordinated debentures | 3,093 | 3,093 | 3,093 | 3,093 | ||||||||||
Subordinated notes | 4,981 | 4,981 | 4,979 | 4,979 | ||||||||||
Financial_Instruments_with_Off1
Financial Instruments with Off-Balance Sheet Risk (Table) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Financial Instruments with Off-Balance Sheet Risk | ||||||||
Schedule of the approximate amounts of financial instruments with off-balance sheet risk | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Commitments to extend credit | $ | 144,224 | $ | 92,827 | ||||
Standby letters of credit | 818 | 210 | ||||||
| | | | | | | | |
$ | 145,042 | $ | 93,037 | |||||
| | | | | | | | |
| | | | | | | | |
Employee_Benefits_Table
Employee Benefits (Table) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Employee Benefits | ||||||||
Summary of ESOP shares | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Allocated shares | 16,958 | 7,811 | ||||||
Unearned shares | 36,935 | — | ||||||
| | | | | | | | |
Total ESOP shares | 53,893 | 7,811 | ||||||
| | | | | | | | |
| | | | | | | | |
Fair value of unearned shares | $ | 523 | $ | — | ||||
Stock_Incentive_Plans_Table
Stock Incentive Plans (Table) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Schedule of assumptions used to measure fair value of each option award estimated on grant date using Black-Scholes option-pricing model | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Dividend yield | 0.00% | 0.00% | |||||||||||||||
Expected life | 6.5 to 6.9 years | 10 years | |||||||||||||||
Expected volatility | 5.60% | 4.00% | |||||||||||||||
Risk-free interest rate | 2.54% to 2.85% | 2.05% to 2.75% | |||||||||||||||
Summary of option activity under the Incentive Plan | |||||||||||||||||
2014 | |||||||||||||||||
Nonperformance-based stock options | Performance-based stock options | ||||||||||||||||
Shares | Weighted | Weighted | Shares | Weighted | Weighted | ||||||||||||
Underlying | Exercise | Average | Underlying | Average | Average | ||||||||||||
Options | Price | Contractual | Options | Exercise | Contractual | ||||||||||||
Term | Price | Term | |||||||||||||||
Outstanding at beginning of year | 327,500 | $ | 10.03 | 7.69 years | 422,500 | $ | 10.02 | 8.0 years | |||||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Granted during the year | 30,000 | 11.53 | 50,000 | 11.26 | |||||||||||||
Forfeited during the year | (5,000 | ) | 10.85 | (5,000 | ) | 10.85 | |||||||||||
Cancelled | — | — | (467,500 | ) | 10.14 | ||||||||||||
Exercised during the year | — | — | — | — | |||||||||||||
| | | | | | | | | | | | | | | | | |
Outstanding at the end of year | 352,500 | $ | 10.14 | 6.58 years | — | — | — | ||||||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Options exercisable at end of year | 189,000 | $ | 10.05 | 6.37 years | — | $ | — | — | |||||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Weighted average fair value of options granted during the year | $ | 1.94 | $ | 2.03 | |||||||||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
2013 | |||||||||||||||||
Nonperformance-based stock options | Performance-based stock options | ||||||||||||||||
Shares | Weighted | Weighted | Shares | Weighted | Weighted | ||||||||||||
Underlying | Exercise | Average | Underlying | Average | Average | ||||||||||||
Options | Price | Contractual | Options | Exercise | Contractual | ||||||||||||
Term | Price | Term | |||||||||||||||
Outstanding at beginning of year | 332,500 | $ | 10 | 8.18 years | 432,500 | $ | 10 | 8.0 years | |||||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Granted during the year | 10,000 | 10.85 | 10,000 | 10.85 | |||||||||||||
Forfeited during the year | (15,000 | ) | 10 | (20,000 | ) | 10 | |||||||||||
Exercised during the year | — | — | — | — | |||||||||||||
| | | | | | | | | | | | | | | | | |
Outstanding at the end of year | 327,500 | $ | 10.03 | 7.69 years | 422,500 | $ | 10.02 | 8.0 years | |||||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Options exercisable at end of year | 115,500 | $ | 10 | 7.02 years | — | $ | — | — | |||||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Weighted average fair value of options granted during the year | $ | 2.51 | $ | 2.51 | |||||||||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Restricted shares | |||||||||||||||||
Summary of status of the Company's restricted shares or restricted stock units | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Shares | Weighted | Shares | Weighted | ||||||||||||||
Average | Average | ||||||||||||||||
Grant Date | Grant Date | ||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||
Nonvested at January 1, | 35,000 | $ | 10.02 | 40,000 | $ | 10 | |||||||||||
Granted during the year | 28,500 | 11.93 | 1,000 | 10.85 | |||||||||||||
Vested during the year | — | — | — | — | |||||||||||||
Forfeited during the year | (1,250 | ) | 10.85 | (6,000 | ) | 10 | |||||||||||
| | | | | | | | | | | | | | ||||
Nonvested at December 31, | 62,250 | $ | 10.86 | 35,000 | $ | 10.02 | |||||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
Restricted stock units | |||||||||||||||||
Summary of status of the Company's restricted shares or restricted stock units | |||||||||||||||||
2014 | |||||||||||||||||
Shares | Weighted | ||||||||||||||||
Average | |||||||||||||||||
Grant Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Nonvested at January 1, | — | — | |||||||||||||||
Granted during the year | 89,703 | 13 | |||||||||||||||
Vested during the year | (7,000 | ) | — | ||||||||||||||
Forfeited during the year | — | — | |||||||||||||||
| | | | | | | | ||||||||||
Nonvested at December 31, | 82,903 | $ | 13 | ||||||||||||||
| | | | | | | | ||||||||||
| | | | | | | | ||||||||||
Capital_Requirements_and_Restr1
Capital Requirements and Restrictions on Retained Earnings (Table) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Capital Requirements and Restrictions on Retained Earnings | ||||||||||||||||||||||||||||
Schedule of comparison of the Company's and Bank's actual capital amounts and ratios to required capital amounts and ratios | ||||||||||||||||||||||||||||
Actual | For Capital | To Be Well | ||||||||||||||||||||||||||
Adequacy Purposes | Capitalized Under | |||||||||||||||||||||||||||
Prompt Corrective | ||||||||||||||||||||||||||||
Action Provisions | ||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||
As of December 31, 2014: | ||||||||||||||||||||||||||||
Total capital (to risk weighted assets) | ||||||||||||||||||||||||||||
Company | $ | 107,197 | 17.22 | % | | $ | 49,814 | | 8.0 | % | | N/A | | N/A | ||||||||||||||
Bank | $ | 79,616 | 12.79 | % | | $ | 49,788 | | 8.0 | % | | $ | 62,235 | | 10.0 | % | ||||||||||||
Tier 1 capital (to risk weighted assets) | ||||||||||||||||||||||||||||
Company | $ | 96,236 | 15.46 | % | | $ | 24,907 | | 4.0 | % | | N/A | | N/A | ||||||||||||||
Bank | $ | 73,635 | 11.83 | % | | $ | 24,894 | | 4.0 | % | | $ | 37,341 | | 6.0 | % | ||||||||||||
Tier 1 capital (to average assets) | ||||||||||||||||||||||||||||
Company | $ | 96,236 | 12.66 | % | | $ | 30,400 | | 4.0 | % | | N/A | | N/A | ||||||||||||||
Bank | $ | 73,635 | 9.69 | % | | $ | 30,386 | | 4.0 | % | | $ | 37,983 | | 5.0 | % | ||||||||||||
As of December 31, 2013: | ||||||||||||||||||||||||||||
Total capital (to risk weighted assets) | ||||||||||||||||||||||||||||
Company | $ | 59,100 | 11.74 | % | | $ | 40,288 | | 8.0 | % | | N/A | | N/A | ||||||||||||||
Bank | $ | 57,275 | 11.37 | % | | $ | 40,296 | | 8.0 | % | | $ | 50,370 | | 10.0 | % | ||||||||||||
Tier 1 capital (to risk weighted assets) | ||||||||||||||||||||||||||||
Company | $ | 49,103 | 9.75 | % | | $ | 20,144 | | 4.0 | % | | N/A | | N/A | ||||||||||||||
Bank | $ | 52,257 | 10.37 | % | | $ | 20,148 | | 4.0 | % | | $ | 30,222 | | 6.0 | % | ||||||||||||
Tier 1 capital (to average assets) | ||||||||||||||||||||||||||||
Company | $ | 49,103 | 8.06 | % | | $ | 24,373 | | 4.0 | % | | N/A | | N/A | ||||||||||||||
Bank | $ | 52,257 | 8.58 | % | | $ | 24,369 | | 4.0 | % | | $ | 30,461 | | 5.0 | % | ||||||||||||
Parent_Company_Only_Financial_1
Parent Company Only Financial Statements (Table) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Parent Company Only Financial Statements | ||||||||
Balance Sheets | ||||||||
Balance Sheets | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Assets | ||||||||
Cash and cash equivalents | $ | 27,399 | $ | 2,018 | ||||
Investment in subsidiaries | 93,897 | 72,579 | ||||||
Other assets | 232 | 300 | ||||||
| | | | | | | | |
Total assets | $ | 121,528 | $ | 74,897 | ||||
| | | | | | | | |
| | | | | | | | |
Liabilities and Stockholders' Equity | ||||||||
Other liabilities | $ | 142 | $ | 586 | ||||
Other borrowings | 8,074 | 8,072 | ||||||
| | | | | | | | |
Total liabilities | 8,216 | 8,658 | ||||||
| | | | | | | | |
Stockholders' equity | ||||||||
Preferred stock | 8,000 | 8,000 | ||||||
Common stock | 95 | 58 | ||||||
Additional paid-in capital | 97,469 | 55,303 | ||||||
Retained earnings | 8,047 | 2,922 | ||||||
Unallocated Employee Stock Ownership Plan Shares | (401 | ) | — | |||||
Treasury stock | (70 | ) | (70 | ) | ||||
Accumulated other comprehensive income | 172 | 26 | ||||||
| | | | | | | | |
Total stockholders' equity | 113,312 | 66,239 | ||||||
| | | | | | | | |
Total liabilities and stockholders' equity | $ | 121,528 | $ | 74,897 | ||||
| | | | | | | | |
| | | | | | | | |
Statements of Income | ||||||||
Statements of Income | ||||||||
Years Ended December 31, | ||||||||
2014 | 2013 | |||||||
Interest income: | ||||||||
Other | $ | 2 | $ | 2 | ||||
Interest expense: | ||||||||
Interest on borrowings | 379 | 63 | ||||||
| | | | | | | | |
Net interest expense | (377 | ) | (61 | ) | ||||
Noninterest expense: | ||||||||
Salaries and employee benefits | 162 | 162 | ||||||
Professional fees | 212 | 76 | ||||||
Other | 17 | — | ||||||
| | | | | | | | |
Total noninterest expense | 391 | 238 | ||||||
| | | | | | | | |
Loss before income tax benefit and equity in undistributed | ||||||||
Income of subsidiaries | (768 | ) | (299 | ) | ||||
Income tax benefit | (256 | ) | (102 | ) | ||||
| | | | | | | | |
(Loss) Income before equity in undistributed income of subsidiaries | (512 | ) | (197 | ) | ||||
Equity in undistributed income of subsidiaries | 5,717 | 3,605 | ||||||
| | | | | | | | |
Net income | $ | 5,205 | $ | 3,408 | ||||
| | | | | | | | |
| | | | | | | | |
Statements of Cash Flows | ||||||||
Statements of Cash Flows | ||||||||
Years Ended December 31, | ||||||||
2014 | 2013 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 5,205 | $ | 3,408 | ||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||||||
Amortization of debt costs | 2 | — | ||||||
Equity in undistributed net income of Bank | (5,717 | ) | (3,605 | ) | ||||
Decrease in other assets | 68 | 389 | ||||||
(Decrease) increase in other liabilities | (444 | ) | 580 | |||||
| | | | | | | | |
Net cash (used in) provided by operating activities | (886 | ) | 772 | |||||
| | | | | | | | |
Cash flows from investing activities: | ||||||||
Capital investment in subsidiaries | (15,000 | ) | (6,000 | ) | ||||
| | | | | | | | |
Net cash used in investing activities | (15,000 | ) | (6,000 | ) | ||||
| | | | | | | | |
Cash flows from financing activities: | ||||||||
Sale of common stock in initial public offering, net of offering cost of $4,574 | 35,791 | — | ||||||
Proceeds from issuance of common stock, net | 5,438 | 1,210 | ||||||
Purchase of common stock held in treasury | — | (70 | ) | |||||
Proceeds from Payments on ESOP Loan | 118 | — | ||||||
Dividends paid on preferred stock | (80 | ) | (60 | ) | ||||
Issuance of subordinated notes | — | 5,000 | ||||||
| | | | | | | | |
Net cash provided by financing activities | 41,267 | 6,080 | ||||||
| | | | | | | | |
Net increase in cash and cash equivalents | 25,381 | 852 | ||||||
Cash and cash equivalents at beginning of year | 2,018 | 1,166 | ||||||
| | | | | | | | |
Cash and cash equivalents at end of year | $ | 27,399 | $ | 2,018 | ||||
| | | | | | | | |
| | | | | | | | |
Summary_of_Significant_Account3
Summary of Significant Accounting Policy (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Oct. 31, 2014 | Sep. 22, 2014 | Dec. 31, 2013 |
item | ||||
Nature of Organization | ||||
Number of Branches | 8 | |||
Number of mortgage offices | 1 | |||
Segment Reporting: | ||||
Number of reportable segment | 1 | |||
I P O Disclosure Line Items | ||||
Common stock, shares authorized | 75,000,000 | 75,000,000 | 10,000,000 | |
Common stock, par value (in dollars per share) | $0.01 | $0.01 | $0.01 | |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 500,000 | |
Preferred stock, par value (in dollars per share) | $0.01 | $1 | $0.01 | |
Series C preferred stock, shares issued | 8,000 | 8,000 | 8,000 | |
Series C preferred stock, shares outstanding | 8,000 | 8,000 | 8,000 | |
Initial public offering | ||||
I P O Disclosure Line Items | ||||
Shares of common stock sold and issued | 3,105,000 | |||
Initial public offering price (in dollars per share) | $13 | |||
Proceeds received, net of offering costs | $36 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policy (Detail 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restrictions On Cash (Abstract) | |||
Required regulatory cash reserve balances | $23,365 | $15,325 | |
Goodwill and Intangible Assets | |||
Impairment charges | $0 | $0 | $0 |
Core deposits intangibles | Minimum | |||
Goodwill and Intangible Assets | |||
Estimated useful live | 7 years | ||
Core deposits intangibles | Maximum | |||
Goodwill and Intangible Assets | |||
Estimated useful live | 9 years | ||
Buildings and improvements | Minimum | |||
Bank Premises and Equipment | |||
Estimated useful lives | 10 years | ||
Buildings and improvements | Maximum | |||
Bank Premises and Equipment | |||
Estimated useful lives | 40 years | ||
Furniture and equipment | Minimum | |||
Bank Premises and Equipment | |||
Estimated useful lives | 3 years | ||
Furniture and equipment | Maximum | |||
Bank Premises and Equipment | |||
Estimated useful lives | 10 years |
Summary_of_Significant_Account5
Summary of Significant Accounting Policy (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings (numerator) | |||
Net income for common stockholders | $5,205 | $3,408 | $1,479 |
Less: preferred stock dividends | 80 | 60 | 100 |
Net income available to common stockholders | 5,125 | 3,348 | 1,379 |
Shares (denominator) | |||
Weighted average shares outstanding for basic EPS (thousands) | 6,992 | 5,788 | 5,641 |
Dilutive effect of employee stock based awards and warrants | 161 | 61 | 37 |
Adjusted weighted average shares outstanding | 7,153 | 5,849 | 5,678 |
Earnings per share: | |||
Basic (in dollars per share) | $0.73 | $0.58 | $0.24 |
Diluted (in dollars per share) | $0.72 | $0.57 | $0.24 |
Veritex Holdings, Inc. | |||
Earnings (numerator) | |||
Net income for common stockholders | $5,205 | $3,408 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policy (Details 4) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Performance-based stock options | ||
Earnings Per Share | ||
Excluded from diluted EPS weighted average shares | 423,000 | 419,000 |
Warrant | ||
Earnings Per Share | ||
Excluded from diluted EPS weighted average shares | 1,000 |
Investment_Securities_Detail
Investment Securities (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
item | ||
Available for Sale securities | ||
Amortized Cost | $44,867 | $45,564 |
Gross Unrealized Gains | 417 | 463 |
Gross Unrealized Losses | 157 | 423 |
Fair Value | 45,127 | 45,604 |
Available for sale investment securities that have been in a continuous unrealized loss position | ||
Less Than 12 Months, Fair Value | 11,728 | 22,758 |
Less Than 12 Months, Unrealized Loss | 46 | 422 |
12 Months or More, Fair Value | 7,895 | 46 |
12 Months or More, Unrealized Loss | 111 | 1 |
Total Fair Value | 19,623 | 22,804 |
Total Unrealized Loss | 157 | 423 |
Number of investment positions in an unrealized loss position | 23 | |
U.S. government agencies | ||
Available for Sale securities | ||
Amortized Cost | 1,928 | 2,019 |
Gross Unrealized Losses | 47 | 95 |
Fair Value | 1,881 | 1,924 |
Available for sale investment securities that have been in a continuous unrealized loss position | ||
Less Than 12 Months, Fair Value | 1,924 | |
Less Than 12 Months, Unrealized Loss | 95 | |
12 Months or More, Fair Value | 1,881 | |
12 Months or More, Unrealized Loss | 47 | |
Total Fair Value | 1,881 | 1,924 |
Total Unrealized Loss | 47 | 95 |
Corporate bonds | ||
Available for Sale securities | ||
Amortized Cost | 500 | 1,445 |
Gross Unrealized Gains | 35 | |
Fair Value | 500 | 1,480 |
Municipal securities | ||
Available for Sale securities | ||
Amortized Cost | 965 | 934 |
Gross Unrealized Gains | 22 | 24 |
Fair Value | 987 | 958 |
Mortgage-backed securities | ||
Available for Sale securities | ||
Amortized Cost | 28,588 | 24,898 |
Gross Unrealized Gains | 256 | 220 |
Gross Unrealized Losses | 73 | 187 |
Fair Value | 28,771 | 24,931 |
Available for sale investment securities that have been in a continuous unrealized loss position | ||
Less Than 12 Months, Fair Value | 10,148 | 10,612 |
Less Than 12 Months, Unrealized Loss | 39 | 187 |
12 Months or More, Fair Value | 3,572 | |
12 Months or More, Unrealized Loss | 34 | |
Total Fair Value | 13,720 | 10,612 |
Total Unrealized Loss | 73 | 187 |
Collateralized mortgage obligations | ||
Available for Sale securities | ||
Amortized Cost | 11,752 | 14,898 |
Gross Unrealized Gains | 124 | 158 |
Gross Unrealized Losses | 37 | 141 |
Fair Value | 11,839 | 14,915 |
Available for sale investment securities that have been in a continuous unrealized loss position | ||
Less Than 12 Months, Fair Value | 1,580 | 10,222 |
Less Than 12 Months, Unrealized Loss | 7 | 140 |
12 Months or More, Fair Value | 2,442 | 46 |
12 Months or More, Unrealized Loss | 30 | 1 |
Total Fair Value | 4,022 | 10,268 |
Total Unrealized Loss | 37 | 141 |
Asset-backed securities | ||
Available for Sale securities | ||
Amortized Cost | 1,134 | 1,370 |
Gross Unrealized Gains | 15 | 26 |
Fair Value | $1,149 | $1,396 |
Investment_Securities_Detail_2
Investment Securities (Detail 2) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Amortized costs of securities available for sale, by contractual maturity | |
Due in one year or less | $500 |
Due from one year to five years | 1,930 |
Due from five years to ten years | 963 |
Total investment securities available for sale, single maturity date | 3,393 |
Total investment securities available for sale, amortized cost basis | 44,867 |
Estimated fair values of securities available for sale, by contractual maturity | |
Due in one year or less | 500 |
Due from one year to five years | 1,932 |
Due from five years to ten years | 936 |
Total investment securities available for sale | 3,368 |
Total investment securities available for sale, fair value | 45,127 |
Mortgage-backed securities | |
Amortized costs of securities available for sale, by contractual maturity | |
Amortized Cost | 28,588 |
Estimated fair values of securities available for sale, by contractual maturity | |
Fair Value | 28,771 |
Collateralized mortgage obligations | |
Amortized costs of securities available for sale, by contractual maturity | |
Amortized Cost | 11,752 |
Estimated fair values of securities available for sale, by contractual maturity | |
Fair Value | 11,839 |
Asset-backed securities | |
Amortized costs of securities available for sale, by contractual maturity | |
Amortized Cost | 1,134 |
Estimated fair values of securities available for sale, by contractual maturity | |
Fair Value | $1,149 |
Investment_Securities_Detail_3
Investment Securities (Detail 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Proceeds from sales of investment securities available for sale and gross gains and losses | |||
Proceeds from sales | $300,981 | $120,000 | $239,997 |
Gross realized gains | $34 |
Loans_and_Allowance_for_Loan_L2
Loans and Allowance for Loan Losses (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Loans and Allowance for Loan Losses | ||||
Loans, gross | $603,310 | $495,270 | ||
Deferred loan fees | -51 | -94 | ||
Allowance for loan losses | -5,981 | -5,018 | -3,238 | -1,012 |
Loans, net | 597,278 | 490,158 | ||
Accretable discount related to loans acquired within a business combination | 185 | 667 | ||
Construction and land | ||||
Loans and Allowance for Loan Losses | ||||
Loans, gross | 69,966 | 47,643 | ||
Farmland | ||||
Loans and Allowance for Loan Losses | ||||
Loans, gross | 10,528 | 11,656 | ||
1 - 4 family residential | ||||
Loans and Allowance for Loan Losses | ||||
Loans, gross | 105,788 | 86,908 | ||
Multi-family residential | ||||
Loans and Allowance for Loan Losses | ||||
Loans, gross | 9,964 | 11,862 | ||
Nonfarm nonresidential | ||||
Loans and Allowance for Loan Losses | ||||
Loan amount outstanding as percentage of total risk-based capital | 246.00% | |||
Loans, gross | 195,839 | 171,451 | ||
Allowance for loan losses | -1,890 | -1,726 | -1,028 | |
Construction, land development, and other land loans | ||||
Loans and Allowance for Loan Losses | ||||
Loan amount outstanding as percentage of total risk-based capital | 88.00% | |||
Commercial | ||||
Loans and Allowance for Loan Losses | ||||
Loans, gross | 207,101 | 160,823 | ||
Allowance for loan losses | -2,092 | -1,585 | -947 | |
Consumer | ||||
Loans and Allowance for Loan Losses | ||||
Loans, gross | 4,124 | 4,927 | ||
Allowance for loan losses | ($64) | ($77) | ($53) |
Loans_and_Allowance_for_Loan_L3
Loans and Allowance for Loan Losses (Detail 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Non-Accrual and Past Due Loans | ||
Non-accrual loans, excluding purchased credit impaired loans | $436 | $1,117 |
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
30-59 Days | 556 | 315 |
60-89 Days | 409 | 9 |
90 Days or Greater | 541 | 1,695 |
Total Past Due | 1,506 | 2,019 |
Total Current | 601,804 | 493,251 |
Total Loans | 603,310 | 495,270 |
Total 90 Days Past Due and Still Accruing | 9 | |
Construction and land | ||
Non-Accrual and Past Due Loans | ||
Non-accrual loans, excluding purchased credit impaired loans | 76 | |
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
30-59 Days | 12 | 19 |
90 Days or Greater | 541 | 645 |
Total Past Due | 553 | 664 |
Total Current | 69,413 | 46,979 |
Total Loans | 69,966 | 47,643 |
Farmland | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Current | 10,528 | 11,656 |
Total Loans | 10,528 | 11,656 |
1 - 4 family residential | ||
Non-Accrual and Past Due Loans | ||
Non-accrual loans, excluding purchased credit impaired loans | 1,041 | |
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
30-59 Days | 512 | 168 |
90 Days or Greater | 1,041 | |
Total Past Due | 512 | 1,209 |
Total Current | 105,276 | 85,699 |
Total Loans | 105,788 | 86,908 |
Multi-family residential | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Current | 9,964 | 11,862 |
Total Loans | 9,964 | 11,862 |
Nonfarm nonresidential | ||
Non-Accrual and Past Due Loans | ||
Non-accrual loans, excluding purchased credit impaired loans | 375 | |
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
60-89 Days | 375 | |
Total Past Due | 375 | |
Total Current | 195,464 | 171,451 |
Total Loans | 195,839 | 171,451 |
Commercial | ||
Non-Accrual and Past Due Loans | ||
Non-accrual loans, excluding purchased credit impaired loans | 34 | |
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
30-59 Days | 6 | 94 |
60-89 Days | 34 | |
Total Past Due | 40 | 94 |
Total Current | 207,061 | 160,729 |
Total Loans | 207,101 | 160,823 |
Consumer | ||
Non-Accrual and Past Due Loans | ||
Non-accrual loans, excluding purchased credit impaired loans | 27 | |
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
30-59 Days | 26 | 34 |
60-89 Days | 9 | |
90 Days or Greater | 9 | |
Total Past Due | 26 | 52 |
Total Current | 4,098 | 4,875 |
Total Loans | 4,124 | 4,927 |
Total 90 Days Past Due and Still Accruing | $9 |
Loans_and_Allowance_for_Loan_L4
Loans and Allowance for Loan Loss (Detail 3) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Impaired Loans | ||
Unpaid Contractual Principal Balance | $2,334 | $4,481 |
Recorded Investment with No Allowance | 1,445 | 4,155 |
Recorded Investment with Allowance | 611 | |
Total Recorded Investment | 2,056 | 4,155 |
Related Allowance | 87 | |
Average Recorded Investment During Year | 2,201 | 4,033 |
Construction and land | ||
Impaired Loans | ||
Unpaid Contractual Principal Balance | 819 | 971 |
Recorded Investment with No Allowance | 645 | |
Recorded Investment with Allowance | 541 | |
Total Recorded Investment | 541 | 645 |
Related Allowance | 44 | |
Average Recorded Investment During Year | 611 | 871 |
1 - 4 family residential | ||
Impaired Loans | ||
Unpaid Contractual Principal Balance | 168 | 1,212 |
Recorded Investment with No Allowance | 168 | 1,212 |
Total Recorded Investment | 168 | 1,212 |
Average Recorded Investment During Year | 205 | 1,306 |
Nonfarm nonresidential | ||
Impaired Loans | ||
Unpaid Contractual Principal Balance | 1,086 | 1,900 |
Recorded Investment with No Allowance | 1,086 | 1,900 |
Total Recorded Investment | 1,086 | 1,900 |
Average Recorded Investment During Year | 980 | 1,462 |
Commercial | ||
Impaired Loans | ||
Unpaid Contractual Principal Balance | 223 | 366 |
Recorded Investment with No Allowance | 183 | 366 |
Recorded Investment with Allowance | 40 | |
Total Recorded Investment | 223 | 366 |
Related Allowance | 30 | |
Average Recorded Investment During Year | 361 | 366 |
Consumer | ||
Impaired Loans | ||
Unpaid Contractual Principal Balance | 38 | 32 |
Recorded Investment with No Allowance | 8 | 32 |
Recorded Investment with Allowance | 30 | |
Total Recorded Investment | 38 | 32 |
Related Allowance | 13 | |
Average Recorded Investment During Year | $44 | $28 |
Loans_and_Allowance_for_Loan_L5
Loans and Allowance for Loan Loss (Detail 4) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
loan | item | |
loan | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in TDRs | $1,677 | $4,078 |
Troubled Debt Restructuring | ||
Number of Loans | 2 | 5 |
Pre-Modification Outstanding Recorded Investment | 18 | 2,405 |
Post-Modification Outstanding Recorded Investment | ||
Adjusted Interest Rate | 4 | |
Extended Maturity | 8 | 2,231 |
Extended Maturity and Restructured Payments | 22 | |
Extended Maturity, Restructured Payments and Adjusted Interest Rate | 171 | |
Number of loans restructured performing as agreed to modified terms | 2 | 4 |
Valuation allowance for loans restructured | 2 | |
Number of restructured loans with recorded allowance | 1 | |
Number of loans restructured placed on nonaccrual status | 1 | |
Number of loans modified as a troubled debt restructured loan within previous 12 months and for which there was a payment default | 0 | 1 |
Period of time payment is past due for trouble debt restructuring to be default. | 90 days | |
Charge-off of restructured loan with subsequent payment default | 85 | |
1 - 4 family residential | ||
Troubled Debt Restructuring | ||
Number of Loans | 2 | |
Pre-Modification Outstanding Recorded Investment | 1,203 | |
Post-Modification Outstanding Recorded Investment | ||
Extended Maturity | 1,051 | |
Extended Maturity, Restructured Payments and Adjusted Interest Rate | 171 | |
Nonfarm nonresidential | ||
Troubled Debt Restructuring | ||
Number of Loans | 1 | |
Pre-Modification Outstanding Recorded Investment | 1,180 | |
Post-Modification Outstanding Recorded Investment | ||
Extended Maturity | 1,180 | |
Commercial | ||
Troubled Debt Restructuring | ||
Number of Loans | 1 | |
Pre-Modification Outstanding Recorded Investment | 16 | |
Post-Modification Outstanding Recorded Investment | ||
Extended Maturity and Restructured Payments | 16 | |
Consumer | ||
Troubled Debt Restructuring | ||
Number of Loans | 2 | 1 |
Pre-Modification Outstanding Recorded Investment | 18 | 6 |
Post-Modification Outstanding Recorded Investment | ||
Adjusted Interest Rate | 4 | |
Extended Maturity | 8 | |
Extended Maturity and Restructured Payments | $6 |
Loans_and_Allowance_for_Loan_L6
Loans and Allowance for Loan Loss (Detail 5) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
item | ||
Loans and Allowance for Loan Losses | ||
Number of categories into which loan is classified from credit risk standpoint | 4 | |
Credit Quality Indicators | ||
Loans | $603,310 | $495,270 |
Pass | ||
Credit Quality Indicators | ||
Loans | 600,773 | 491,333 |
Special Mention | ||
Credit Quality Indicators | ||
Loans | 672 | 738 |
Substandard | ||
Credit Quality Indicators | ||
Loans | 1,865 | 3,199 |
Construction and land | ||
Credit Quality Indicators | ||
Loans | 69,966 | 47,643 |
Construction and land | Pass | ||
Credit Quality Indicators | ||
Loans | 69,425 | 46,998 |
Construction and land | Substandard | ||
Credit Quality Indicators | ||
Loans | 541 | 645 |
Farmland | ||
Credit Quality Indicators | ||
Loans | 10,528 | 11,656 |
Farmland | Pass | ||
Credit Quality Indicators | ||
Loans | 10,528 | 11,656 |
1 - 4 family residential | ||
Credit Quality Indicators | ||
Loans | 105,788 | 86,908 |
1 - 4 family residential | Pass | ||
Credit Quality Indicators | ||
Loans | 105,786 | 85,649 |
1 - 4 family residential | Substandard | ||
Credit Quality Indicators | ||
Loans | 2 | 1,259 |
Multi-family residential | ||
Credit Quality Indicators | ||
Loans | 9,964 | 11,862 |
Multi-family residential | Pass | ||
Credit Quality Indicators | ||
Loans | 9,964 | 11,862 |
Nonfarm nonresidential | ||
Credit Quality Indicators | ||
Loans | 195,839 | 171,451 |
Nonfarm nonresidential | Pass | ||
Credit Quality Indicators | ||
Loans | 195,464 | 171,371 |
Nonfarm nonresidential | Substandard | ||
Credit Quality Indicators | ||
Loans | 375 | 80 |
Commercial | ||
Credit Quality Indicators | ||
Loans | 207,101 | 160,823 |
Commercial | Pass | ||
Credit Quality Indicators | ||
Loans | 205,681 | 158,919 |
Commercial | Special Mention | ||
Credit Quality Indicators | ||
Loans | 672 | 731 |
Commercial | Substandard | ||
Credit Quality Indicators | ||
Loans | 748 | 1,173 |
Consumer | ||
Credit Quality Indicators | ||
Loans | 4,124 | 4,927 |
Consumer | Pass | ||
Credit Quality Indicators | ||
Loans | 3,925 | 4,878 |
Consumer | Special Mention | ||
Credit Quality Indicators | ||
Loans | 7 | |
Consumer | Substandard | ||
Credit Quality Indicators | ||
Loans | $199 | $42 |
Loans_and_Allowance_for_Loan_L7
Loans and Allowance for Loan Loss (Detail 6) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Analysis of allowance for loan losses | |||
Balance at beginning of year | $5,018 | $3,238 | $1,012 |
Provision charged to earnings | 1,423 | 1,883 | 2,953 |
Charge-offs | -510 | -240 | -801 |
Recoveries | 50 | 137 | 74 |
Net charge-offs | -460 | -103 | -727 |
Balance at end of period | 5,981 | 5,018 | 3,238 |
Allowance for loan losses | 0.99% | 1.01% | |
Specific Reserves: | |||
Impaired loans | 87 | ||
Total specific reserves | 87 | ||
General reserves | 5,894 | 5,018 | |
Total | 5,981 | 5,018 | 3,238 |
Recorded investment in loans related to balance in allowance for loan losses on basis of impairment methodology | |||
Loans individually evaluated for impairment | 2,056 | 4,155 | |
Loans collectively evaluated for impairment | 601,254 | 491,115 | |
Total Loans | 603,310 | 495,270 | |
Construction land and Farmland | |||
Analysis of allowance for loan losses | |||
Balance at beginning of year | 660 | 455 | |
Provision charged to earnings | 137 | 205 | |
Charge-offs | -28 | ||
Net charge-offs | -28 | ||
Balance at end of period | 769 | 660 | |
Specific Reserves: | |||
Impaired loans | 44 | ||
Total specific reserves | 44 | ||
General reserves | 725 | 660 | |
Total | 769 | 660 | |
Recorded investment in loans related to balance in allowance for loan losses on basis of impairment methodology | |||
Loans individually evaluated for impairment | 541 | 645 | |
Loans collectively evaluated for impairment | 79,953 | 58,654 | |
Total Loans | 80,494 | 59,299 | |
Residential | |||
Analysis of allowance for loan losses | |||
Balance at beginning of year | 970 | 755 | |
Provision charged to earnings | 226 | 240 | |
Charge-offs | -30 | -85 | |
Recoveries | 60 | ||
Net charge-offs | -30 | -25 | |
Balance at end of period | 1,166 | 970 | |
Specific Reserves: | |||
General reserves | 1,166 | 970 | |
Total | 1,166 | 970 | |
Recorded investment in loans related to balance in allowance for loan losses on basis of impairment methodology | |||
Loans individually evaluated for impairment | 168 | 1,212 | |
Loans collectively evaluated for impairment | 115,584 | 97,558 | |
Total Loans | 115,752 | 98,770 | |
Nonfarm nonresidential | |||
Analysis of allowance for loan losses | |||
Balance at beginning of year | 1,726 | 1,028 | |
Provision charged to earnings | 162 | 698 | |
Recoveries | 2 | ||
Net charge-offs | 2 | ||
Balance at end of period | 1,890 | 1,726 | |
Specific Reserves: | |||
General reserves | 1,890 | 1,726 | |
Total | 1,890 | 1,726 | |
Recorded investment in loans related to balance in allowance for loan losses on basis of impairment methodology | |||
Loans individually evaluated for impairment | 1,086 | 1,900 | |
Loans collectively evaluated for impairment | 194,753 | 169,551 | |
Total Loans | 195,839 | 171,451 | |
Commercial | |||
Analysis of allowance for loan losses | |||
Balance at beginning of year | 1,585 | 947 | |
Provision charged to earnings | 909 | 716 | |
Charge-offs | -448 | -110 | |
Recoveries | 46 | 32 | |
Net charge-offs | -402 | -78 | |
Balance at end of period | 2,092 | 1,585 | |
Specific Reserves: | |||
Impaired loans | 30 | ||
Total specific reserves | 30 | ||
General reserves | 2,062 | 1,585 | |
Total | 2,092 | 1,585 | |
Recorded investment in loans related to balance in allowance for loan losses on basis of impairment methodology | |||
Loans individually evaluated for impairment | 223 | 366 | |
Loans collectively evaluated for impairment | 206,878 | 160,457 | |
Total Loans | 207,101 | 160,823 | |
Consumer | |||
Analysis of allowance for loan losses | |||
Balance at beginning of year | 77 | 53 | |
Provision charged to earnings | -11 | 24 | |
Charge-offs | -4 | -45 | |
Recoveries | 2 | 45 | |
Net charge-offs | -2 | ||
Balance at end of period | 64 | 77 | |
Specific Reserves: | |||
Impaired loans | 13 | ||
Total specific reserves | 13 | ||
General reserves | 51 | 77 | |
Total | 64 | 77 | |
Recorded investment in loans related to balance in allowance for loan losses on basis of impairment methodology | |||
Loans individually evaluated for impairment | 38 | 32 | |
Loans collectively evaluated for impairment | 4,086 | 4,895 | |
Total Loans | $4,124 | $4,927 |
Loans_and_Allowance_for_Loan_L8
Loans and Allowance for Loan Loss (Detail 7) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
loan | loan | |
Number of purchased credit impaired loans acquired | 0 | 0 |
Number of purchased credit impaired loans accounted for using cost recovery method | 1 | 1 |
Loan acquired using cost recovery method | ||
Loans at the end of the year | $541 | $569 |
Construction and land | ||
Unpaid principal balance | 819 | 819 |
Carrying amount | $541 | $569 |
Bank_Premises_and_Equipment_De
Bank Premises and Equipment (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment, Net [Abstract] | |||
Bank premises, furniture and equipment, gross | $14,527 | $12,284 | |
Less accumulated depreciation | 3,377 | 2,332 | |
Bank premises, furniture and equipment, net | 11,150 | 9,952 | |
Depreciation [Abstract] | |||
Depreciation | 1,045 | 972 | 764 |
Buildings and improvements | |||
Property, Plant and Equipment, Net [Abstract] | |||
Bank premises, furniture and equipment, gross | 2,672 | 2,343 | |
Leasehold improvements | |||
Property, Plant and Equipment, Net [Abstract] | |||
Bank premises, furniture and equipment, gross | 2,942 | 2,873 | |
Land | |||
Property, Plant and Equipment, Net [Abstract] | |||
Bank premises, furniture and equipment, gross | 5,181 | 3,609 | |
Furniture, fixtures and equipment | |||
Property, Plant and Equipment, Net [Abstract] | |||
Bank premises, furniture and equipment, gross | $3,732 | $3,459 |
Non_marketable_Equity_Securiti
Non marketable Equity Securities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Federal Home Loan Bank of Dallas stock | $1,907 | $827 |
Federal Reserve Bank of Dallas stock | 2,182 | 1,837 |
Other non-marketable equity securities | 50 | 50 |
Total non-marketable equity securities | $4,139 | $2,714 |
Intangible_Assets_Detail
Intangible Assets (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross Intangible Asset | $2,487 | $2,487 | |
Accumulated Amortization | 1,226 | 920 | |
Total intangible assets | 1,261 | 1,567 | |
Amortization [Abstract] | |||
Amortization of Intangible Assets | 306 | 308 | 308 |
Core deposits intangibles | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Weighted Amortization Period | 5 years | 6 years | |
Gross Intangible Asset | 2,380 | 2,380 | |
Accumulated Amortization | 1,170 | 875 | |
Total intangible assets | 1,210 | 1,505 | |
Other intangible assets | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Weighted Amortization Period | 4 years 10 months 24 days | 5 years 10 months 24 days | |
Gross Intangible Asset | 107 | 107 | |
Accumulated Amortization | 56 | 45 | |
Total intangible assets | $51 | $62 |
Intangible_Assets_Detail_2
Intangible Assets (Detail 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Estimated aggregate future amortization expense [Abstract] | ||
2015 | $301 | |
2016 | 297 | |
2017 | 297 | |
2018 | 206 | |
2019 | 87 | |
Thereafter | 73 | |
Total intangible assets | $1,261 | $1,567 |
Goodwill_Detail
Goodwill (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Goodwill [Roll Forward] | |||
Beginning of year | $19,148 | $19,148 | $19,148 |
End of Year | $19,148 | $19,148 | $19,148 |
Deposits_Detail
Deposits (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deposits, by Type [Abstract] | ||
Noninterest-bearing demand accounts | $251,124 | $218,990 |
Interest-bearing demand accounts | 57,556 | 40,178 |
Savings accounts | 6,101 | 5,286 |
Limited access money market accounts | 227,074 | 210,131 |
Certificates of deposit, greater than $100 | 79,517 | 81,478 |
Certificates of deposit, less than $100 | 17,371 | 17,875 |
Total deposits | 638,743 | 573,938 |
The scheduled maturities of certificates of deposit | ||
2015 | 84,304 | |
2016 | 6,322 | |
2017 | 2,201 | |
2018 | 2,361 | |
2019 | 1,700 | |
Certificates of deposit, total | 96,888 | |
Demand deposit overdrafts | ||
Demand deposit overdrafts reclassified as loans | $50 | $47 |
Advances_from_the_Federal_Home1
Advances from the Federal Home Loan Bank (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Advances from the Federal Home Loan Bank | ||
Advances from Federal Home Loan Banks | $40,000 | $15,000 |
Advances from the Federal Home Loan Bank, weighted average rate | 0.36% | |
Availability to borrow additional funds | $236,067 |
Other_Credit_Extensions_Detail
Other Credit Extensions (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | item | item |
Federal Funds Credit Extensions With Commercial Banks | ||
Other Credit Extensions | ||
Number of credit facilities | 2 | 2 |
Maximum available borrowings | $14,600 | $14,600 |
Outstanding borrowings | 0 | 0 |
Federal Reserve Bank Secured Line Of Credit | ||
Other Credit Extensions | ||
Maximum available borrowings | 164,026 | 127,088 |
Outstanding borrowings | 0 | 0 |
Amounts of commercial loans were pledged as collateral | $201,210 | $155,895 |
Junior_Subordinated_Debentures2
Junior Subordinated Debentures and Subordinated Notes (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | |
item | |||
Debt instrument | |||
Junior subordinated debentures-Trust Securities with a rate of LIBOR plus 1.85% debentures payable to Parkway National Capital Trust 1 with stated maturity of 2036 | 3,093,000 | $3,093,000 | |
Subordinated notes-unsecured notes with a fixed rate of 6% payable to entities of an affiliate with stated maturity of 2023 (less discount of $21-effective interest rate of 6.025%) | 4,981,000 | 4,979,000 | |
Face amount of subordinated notes issued to related party | 5,000,000 | ||
Maximum | |||
Debt instrument | |||
Interest distribution quarterly periods | 20 | ||
Junior subordinated debentures-Trust Securities | Fidelity Resource Company | |||
Debt instrument | |||
Debentures assumed in business combination | 3,100,000 | ||
Subordinated notes-unsecured notes | |||
Debt instrument | |||
Face amount of subordinated notes issued to related party | 5,000,000 | ||
Subordinated notes-unsecured notes | Affiliated entities | |||
Debt instrument | |||
Subordinated notes-unsecured notes with a fixed rate of 6% payable to entities of an affiliate with stated maturity of 2023 (less discount of $21-effective interest rate of 6.025%) | 4,981,000 | 4,979,000 | |
Fixed rate (as a percent) | 6.00% | 6.00% | |
Discount on related party debt | 21,000 | $21,000 | |
Effective interest rate (as a percent) | 6.03% | 6.03% | |
Number of shares that warrants issued to related party may be converted into (in shares) | 25,000 | ||
Exercise price of warrants issued to related party (in dollars per share) | $11 | ||
Price used to calculate fair value of warrants issued to related party (in dollars per share) | $0.80 | ||
LIBOR | Junior subordinated debentures-Trust Securities | |||
Debt instrument | |||
Margin (as a percent) | 1.85% | 1.85% | |
Parkway National Capital Trust 1 [Member] | |||
Debt instrument | |||
Basis of variable distribution rate | 3-month LIBOR | 3-month LIBOR | |
Basis spread on variable distribution rate (as a percent) | 1.85% | 1.85% | |
Distribution effective rate (as a percent) | 2.09% | 2.10% |
Income_Taxes_Detail
Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income tax expense (benefit): | |||
Current | $3,171 | $2,491 | $534 |
Deferred | -466 | -714 | -398 |
Total income tax expense | 2,705 | 1,777 | 136 |
Reconciliation of income tax computed at statutory rate to effective tax rate | |||
Statutory rate (as a percent) | 34.00% | 34.00% | |
Federal income tax expense rate at 34% | 2,690 | 1,763 | 549 |
Stock option expense | 76 | 58 | |
Bank-owned life insurance income | -118 | -110 | -52 |
Non-deductible dues and memberships | 50 | 48 | 44 |
Non-deductible meals and entertainment | 43 | 24 | |
Change in valuation allowance | -518 | ||
Other | 40 | -24 | 55 |
Total income tax expense | 2,705 | 1,777 | 136 |
Effective tax rate (as a percent) | 34.20% | 34.30% | 8.40% |
Deferred tax assets: | |||
Net operating loss | 96 | ||
Organizational costs | 167 | 183 | |
Allowance for loan losses | 1,868 | 1,619 | |
Deferred loan fees | 18 | 32 | |
Non-accrual interest | 69 | 62 | |
Capital loss carryforward | 85 | 85 | |
OREO write down for book purposes | 55 | ||
Deferred rent expenses | 66 | 70 | |
Restricted stock | 131 | 84 | |
Stock options | 73 | ||
Accrued bonuses | 271 | 243 | |
Other | 137 | 134 | |
Total deferred tax assets | 2,885 | 2,663 | |
Deferred tax liabilities: | |||
Net unrealized gain on securities available for sale | 88 | 14 | |
Core deposit intangibles | 412 | 512 | |
FHLB stock dividends | 27 | 26 | |
Bank premises and equipment | 973 | 1,118 | |
Total deferred tax liabilities | 1,500 | 1,670 | |
Net deferred tax asset | 1,385 | 993 | |
Veritex Holdings, Inc. | |||
Income tax expense (benefit): | |||
Total income tax expense | -256 | -102 | |
Reconciliation of income tax computed at statutory rate to effective tax rate | |||
Total income tax expense | ($256) | ($102) |
Income_Taxes_Detail_2
Income Taxes (Detail 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Amount included in consolidated balance sheets | ||
Net deferred tax asset | $1,385 | $993 |
Other assets. | ||
Amount included in consolidated balance sheets | ||
Current tax liability | 89 | |
Current tax receivable | 292 | |
Net deferred tax asset | $1,385 | $993 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Minimum future rental payments under non-cancelable operating leases | |||
2015 | $955 | ||
2016 | 879 | ||
2017 | 904 | ||
2018 | 816 | ||
2019 | 751 | ||
Thereafter | 1,717 | ||
Total | 6,022 | ||
Operating Leases | |||
Rental expense on operating lease | 1,468 | 1,353 | 1,205 |
Loss on early contract termination | 102 | ||
Liability associated with early contract termination | $0 | $7 |
Other_Noninterest_Expense_Deta
Other Non-interest Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Non-interest Expense | |||
Business development | $446 | $308 | $235 |
Office and postage | 240 | 216 | 304 |
Director fees | 198 | 83 | 45 |
Insurance | 92 | 99 | 95 |
Security | 115 | 105 | 102 |
Charitable contributions and donations | 147 | 135 | 62 |
Travel | 41 | 42 | 37 |
Training | 45 | 34 | 26 |
Other | 787 | 701 | 553 |
Total | $2,111 | $1,723 | $1,459 |
Fair_Value_Disclosures_Detail
Fair Value Disclosures (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Assets measured at fair value | ||
Investment securities available for sale | $45,127 | $45,604 |
Related Allowance | 87 | |
Level 2 Inputs | Carrying Amount | ||
Assets measured at fair value | ||
Investment securities available for sale | 45,127 | 45,604 |
Recurring | ||
Assets measured at fair value | ||
Investment securities available for sale | 45,127 | 45,604 |
Liabilities measured at fair value | 0 | 0 |
Transfer of assets from Level 2 to Level 3 | 0 | 0 |
Transfer of assets from Level 3 to Level 2 | 0 | 0 |
Recurring | Level 2 Inputs | ||
Assets measured at fair value | ||
Investment securities available for sale | 45,127 | 45,604 |
Non-recurring | ||
Assets measured at fair value | ||
Impaired loans | 2,056 | 4,155 |
Other real estate owned | 50 | 1,797 |
Related Allowance | 87 | 0 |
Liabilities measured at fair value | 0 | 0 |
Non-recurring | Carrying Amount | ||
Assets measured at fair value | ||
Impaired loans | 2,056 | 4,155 |
Other real estate owned | 53 | 1,959 |
Non-recurring | Period Ended Total Losses | ||
Assets measured at fair value | ||
Other real estate owned | 3 | 162 |
Non-recurring | Level 3 Inputs | ||
Assets measured at fair value | ||
Impaired loans | 2,056 | 4,155 |
Other real estate owned | $50 | $1,797 |
Fair_Value_Disclosures_Detail_
Fair Value Disclosures (Detail 2) (Collateral Method, Level 3 Inputs, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Impaired loans | ||
Significant unobservable inputs used in the fair value measurements | ||
Fair Value | $2,056 | $4,155 |
Weighted Average (as a percent) | 8.00% | 8.00% |
Other real estate owned, net | ||
Significant unobservable inputs used in the fair value measurements | ||
Fair Value | $50 | $1,797 |
Weighted Average (as a percent) | 8.00% | 8.00% |
Fair_Value_Disclosures_Detail_1
Fair Value Disclosures (Detail 3) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value Disclosures | ||
Maximum maturity period for Federal Home Loan Bank advances recorded at carrying value | 90 days | |
Financial assets: | ||
Securities available for sale | $45,127 | $45,604 |
Financial liabilities: | ||
Junior subordinated debentures | 3,093 | 3,093 |
Subordinated notes | 4,981 | 4,979 |
Level 2 Inputs | Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 93,251 | 76,646 |
Securities available for sale | 45,127 | 45,604 |
Loans held for sale | 8,858 | 2,051 |
Accrued interest receivable | 1,542 | 1,351 |
Bank-owned life insurance | 17,822 | 10,475 |
Non-marketable equity securities | 4,139 | 2,714 |
Financial liabilities: | ||
Deposits | 638,743 | 573,938 |
Advances from FHLB | 40,000 | 15,000 |
Accrued interest payable | 126 | 134 |
Junior subordinated debentures | 3,093 | 3,093 |
Subordinated notes | 4,981 | 4,979 |
Level 2 Inputs | Total Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 93,251 | 76,646 |
Securities available for sale | 45,127 | 45,604 |
Loans held for sale | 8,858 | 2,051 |
Accrued interest receivable | 1,542 | 1,351 |
Bank-owned life insurance | 17,822 | 10,475 |
Non-marketable equity securities | 4,139 | 2,714 |
Financial liabilities: | ||
Deposits | 630,402 | 568,451 |
Advances from FHLB | 40,028 | 15,055 |
Accrued interest payable | 126 | 134 |
Junior subordinated debentures | 3,093 | 3,093 |
Subordinated notes | 4,981 | 4,979 |
Level 3 Inputs | Carrying Amount | ||
Financial assets: | ||
Loans, net | 597,278 | 490,158 |
Level 3 Inputs | Total Fair Value | ||
Financial assets: | ||
Loans, net | $596,138 | $490,344 |
Financial_Instruments_with_Off2
Financial Instruments with Off-Balance Sheet Risk (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial instruments with off-balance sheet risk | ||
Total commitments | $145,042 | $93,037 |
Commitments to extend credit | ||
Financial instruments with off-balance sheet risk | ||
Total commitments | 144,224 | 92,827 |
Standby letters of credit | ||
Financial instruments with off-balance sheet risk | ||
Total commitments | $818 | $210 |
Employee_Benefits_Detail
Employee Benefits (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |
Jan. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Benefits | |||
Matching contributions to 401(k) profit sharing Plan | $0 | $0 | |
Summary of ESOP shares | |||
Allocated shares | 16,958 | 7,811 | |
Unearned shares | 36,935 | ||
Total ESOP shares | 53,893 | 7,811 | |
Fair value of unearned shares | 523 | ||
ESOP | |||
ESOP | |||
Amount borrowed | 500,000 | ||
Shares purchased | 46,082 | ||
Loan repayment | 118,000 | ||
Number of shares released | 9,147 | ||
Compensation expense | $152,000 | $120,000 |
Stock_and_Incentive_Plan_Detai
Stock and Incentive Plan (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Oct. 09, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 |
item | |||||
2010 Stock Option and Equity Incentive Plan | |||||
Stock and Incentive Plans | |||||
Number of shares authorized | 1,000,000 | ||||
Stock based compensation expense | $329 | $323 | $255 | ||
Unrecognized compensation expense (in dollars) | 230 | 1,670 | |||
Portion of unrecognized compensation expense expected to be recognized over remaining requisite service periods of awards granted | 844 | ||||
Portion of unrecognized compensation expense not expected to be recognized due to performance criteria not expected to be achieved | 826 | ||||
Assumptions used to measure fair value of each option award estimated on grant date using Black-Scholes option-pricing model | |||||
Dividend yield (as a percent) | 0.00% | 0.00% | |||
Expected volatility (as a percent) | 5.60% | 4.00% | |||
Risk-free interest rate, minimum (as a percent) | 2.54% | 2.05% | |||
Risk-free interest rate, maximum (as a percent) | 2.85% | 2.75% | |||
Additional disclosures | |||||
Stock based compensation expense | 329 | 323 | 255 | ||
2010 Stock Option and Equity Incentive Plan | Minimum | |||||
Assumptions used to measure fair value of each option award estimated on grant date using Black-Scholes option-pricing model | |||||
Expected life | 6 years 6 months | ||||
2010 Stock Option and Equity Incentive Plan | Maximum | |||||
Assumptions used to measure fair value of each option award estimated on grant date using Black-Scholes option-pricing model | |||||
Expected life | 6 years 10 months 24 days | ||||
Omnibus Plan | |||||
Stock and Incentive Plans | |||||
Number of shares authorized | 1,000,000 | ||||
Stock based compensation expense | 126 | ||||
Additional disclosures | |||||
Stock based compensation expense | 126 | ||||
Restricted shares | 2010 Stock Option and Equity Incentive Plan | |||||
Stock and Incentive Plans | |||||
Number of shares authorized | 100,000 | ||||
Term of continuous service for vesting awards | 4 years | ||||
Unrecognized compensation expense (in dollars) | 286 | 150 | |||
Additional disclosures | |||||
Requisite service period to recognize compensation cost | 1 year 8 months 27 days | ||||
Activity in shares | |||||
Nonvested at the beginning of the period (in shares) | 35,000 | 40,000 | |||
Granted (in shares) | 28,500 | 1,000 | |||
Forfeited (in shares) | -1,250 | -6,000 | |||
Nonvested at the end of the period (in shares) | 62,250 | 35,000 | |||
Activity in weighted average grant date fair value | |||||
Nonvested at the beginning of the period (in dollars per share) | $10.02 | $10 | |||
Granted (in dollars per share) | $11.93 | $10.85 | |||
Forfeited (in dollars per share) | ($10.85) | ($10) | |||
Nonvested at the end of the period (in dollars per share) | $10.86 | $10.02 | |||
Restricted stock units | Omnibus Plan | |||||
Stock and Incentive Plans | |||||
Awards granted in conjunction with cancellation of awards under Incentive Plan (in shares) | 81,480 | ||||
Number of employees and directors granted awards in conjunction with cancellation of awards under Incentive Plan | 29 | ||||
Restricted stock units vested from the date of grant | 5 years | ||||
Annual vesting percentage of shares granted under the Plan | 20.00% | ||||
Incremental compensation cost resulting from plan modification | 1,059 | ||||
Incremental cost resulting from plan modification, recognition period | 5 years | ||||
Unrecognized compensation expense (in dollars) | 922 | ||||
Restricted stock additional units granted to employees and directors | 8,223 | ||||
Additional disclosures | |||||
Requisite service period to recognize compensation cost | 4 years 8 months 27 days | ||||
Activity in shares | |||||
Granted (in shares) | 89,703 | ||||
Vested (in shares) | -7,000 | ||||
Nonvested at the end of the period (in shares) | 82,903 | ||||
Activity in weighted average grant date fair value | |||||
Granted (in dollars per share) | $13 | ||||
Nonvested at the end of the period (in dollars per share) | $13 | ||||
Stock option | 2010 Stock Option and Equity Incentive Plan | |||||
Stock and Incentive Plans | |||||
Number of shares authorized | 900,000 | ||||
Term of continuous service for vesting awards | 5 years | ||||
Contractual terms for non-controlling participants | 10 years | ||||
Unrecognized compensation expense (in dollars) | 230 | 1,520 | |||
Assumptions used to measure fair value of each option award estimated on grant date using Black-Scholes option-pricing model | |||||
Expected life | 10 years | ||||
Performance-based stock options | 2010 Stock Option and Equity Incentive Plan | |||||
Stock and Incentive Plans | |||||
Number of shares authorized | 500,000 | ||||
Cancelled during the period (in shares) | -467,500 | -467,500 | |||
Cancelled during the period (in dollars per share) | ($10.13) | ($10.14) | |||
Number of shares awarded under stock options | 50,000 | 10,000 | |||
Stock based compensation expense | 0 | ||||
Unrecognized compensation expense (in dollars) | 0 | 349 | |||
Shares Underlying Options activity | |||||
Outstanding at beginning of period (in shares) | 422,500 | 432,500 | |||
Granted during the period (in shares) | 50,000 | 10,000 | |||
Forfeited during the period (in shares) | -5,000 | -20,000 | |||
Cancelled during the period (in shares) | -467,500 | -467,500 | |||
Outstanding at the end of period (in shares) | 422,500 | 432,500 | |||
Activity in weighted exercise price | |||||
Outstanding at beginning of period (in dollars per share) | $10.02 | $10 | |||
Granted during the period (in dollars per share) | $11.26 | $10.85 | |||
Forfeited during the period (in dollars per share) | ($10.85) | ($10) | |||
Cancelled during the period (in dollars per share) | ($10.13) | ($10.14) | |||
Outstanding at the end of period (in dollars per share) | $10.02 | $10 | |||
Weighted average fair value of options granted during the period (in dollars per share) | $2.03 | $2.51 | |||
Weighted Average Contractual Term | |||||
Outstanding at beginning of period | 8 years | 8 years | |||
Outstanding at the end of period | 8 years | 8 years | |||
Additional disclosures | |||||
Aggregate intrinsic value of outstanding stock options (in dollars) | 1,216 | ||||
Aggregate intrinsic value of exercisable stock options (in dollars) | 0 | 0 | |||
Requisite service period to recognize compensation cost | 7 years | ||||
Stock based compensation expense | 0 | ||||
Number of performance conditions met | 1 | ||||
Activity in shares | |||||
Granted (in shares) | 50,000 | ||||
Nonperformance-based stock options | 2010 Stock Option and Equity Incentive Plan | |||||
Stock and Incentive Plans | |||||
Number of shares awarded under stock options | 30,000 | 10,000 | |||
Unrecognized compensation expense (in dollars) | 230 | 402 | |||
Shares Underlying Options activity | |||||
Outstanding at beginning of period (in shares) | 327,500 | 332,500 | |||
Granted during the period (in shares) | 30,000 | 10,000 | |||
Forfeited during the period (in shares) | -5,000 | -15,000 | |||
Outstanding at the end of period (in shares) | 352,500 | 327,500 | 332,500 | ||
Options exercisable at end of period (in shares) | 189,000 | 115,500 | |||
Activity in weighted exercise price | |||||
Outstanding at beginning of period (in dollars per share) | $10.03 | $10 | |||
Granted during the period (in dollars per share) | $11.53 | $10.85 | |||
Forfeited during the period (in dollars per share) | ($10.85) | ($10) | |||
Outstanding at the end of period (in dollars per share) | $10.14 | $10.03 | $10 | ||
Options exercisable at end of period (in dollars per share) | $10.05 | $10 | |||
Weighted average fair value of options granted during the period (in dollars per share) | $1.94 | $2.51 | |||
Weighted Average Contractual Term | |||||
Outstanding at beginning of period | 6 years 6 months 29 days | 7 years 8 months 9 days | 8 years 2 months 5 days | ||
Outstanding at the end of period | 6 years 6 months 29 days | 7 years 8 months 9 days | 8 years 2 months 5 days | ||
Options exercisable at end of period | 6 years 4 months 13 days | 7 years 7 days | |||
Additional disclosures | |||||
Aggregate intrinsic value of outstanding stock options (in dollars) | 1,420 | 939 | |||
Aggregate intrinsic value of exercisable stock options (in dollars) | $780 | $335 | |||
Requisite service period to recognize compensation cost | 2 years 3 months 29 days | ||||
Activity in shares | |||||
Granted (in shares) | 30,000 |
Related_Party_Transactions_Det
Related Party Transactions (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
entity | ||
Related Party Transactions | ||
Aggregate amounts of loans to the Company's employees, officers, directors and their affiliates | $11,353 | $16,703 |
New advances to the Company's employees, officers, directors and their affiliates | 2,745 | 7,102 |
Principal payments received from the loans to employees, officers, directors, and their affiliates | 8,095 | 8,787 |
Unfunded commitments to related parties | 228 | 1,398 |
Deposits received from related parties | 17,303 | 15,511 |
Face amount of subordinated notes issued to related party | $5,000 | |
Number of related party lenders | 2 |
Preferred_Stock_Detail
Preferred Stock (Detail) (USD $) | 12 Months Ended | 0 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 25, 2011 | Aug. 25, 2014 | Dec. 31, 2014 |
Preferred Stock | |||||
Shares issued pursuant to SBLF program, value | $1,210 | $1,398 | |||
Liquidation amount (in dollars per share) | $1,000 | $1,000 | |||
SBLF Preferred Stock | |||||
Preferred Stock | |||||
Number of quarters during which dividend rate fluctuates | 10 | ||||
Number of dividend payment defaults triggering appointment of a representative as an observer on the Company's Board of Directors | 5 | ||||
Redemption price as a percentage of liquidation amount plus accrued but unpaid dividends | 100.00% | ||||
Liquidation amount (in dollars per share) | $1,000 | ||||
SBLF Purchase Agreement | SBLF Preferred Stock | Initial dividend period | |||||
Preferred Stock | |||||
Dividend rate (as a percent) | 1.00% | ||||
SBLF Purchase Agreement | SBLF Preferred Stock | Dividend period for tenth calendar quarter through four and one half years after issuance | |||||
Preferred Stock | |||||
Dividend rate (as a percent) | 1.00% | ||||
Dividend period used in setting dividend rate | 4 years 6 months | ||||
SBLF Purchase Agreement | SBLF Preferred Stock | Dividend period after four and one half years from issuance | |||||
Preferred Stock | |||||
Dividend rate (as a percent) | 9.00% | ||||
Dividend period used in setting dividend rate | 4 years 6 months | ||||
Quarterly lending incentive fee (as a percent) | 0.50% | ||||
SBLF Purchase Agreement | SBLF Preferred Stock | Secretary of the Treasury | |||||
Preferred Stock | |||||
Shares issued pursuant to SBLF program | 8,000 | ||||
Shares issued pursuant to SBLF program, value | 8,000 |
Capital_Requirements_and_Restr2
Capital Requirements and Restrictions on Retained Earnings (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Total capital (to risk weighted assets) | ||
Actual Amount | $107,197 | $59,100 |
Actual Ratio (as a percent) | 17.22% | 11.74% |
For Capital Adequacy Purposes Amount | 49,814 | 40,288 |
For Capital Adequacy Purposes Ratio (as a percent) | 8.00% | 8.00% |
Tier 1 capital (to risk weighted assets) | ||
Actual Amount | 96,236 | 49,103 |
Actual Ratio (as a percent) | 15.46% | 9.75% |
For Capital Adequacy Purposes Amount | 24,907 | 20,144 |
For Capital Adequacy Purposes Ratio (as a percent) | 4.00% | 4.00% |
Tier 1 capital (to average assets) | ||
Actual Amount | 96,236 | 49,103 |
Actual Ratio (as a percent) | 12.66% | 8.06% |
For Capital Adequacy Purposes Amount | 30,400 | 24,373 |
For Capital Adequacy Purposes Ratio (as a percent) | 4.00% | 4.00% |
Bank | ||
Total capital (to risk weighted assets) | ||
Actual Amount | 79,616 | 57,275 |
Actual Ratio (as a percent) | 12.79% | 11.37% |
For Capital Adequacy Purposes Amount | 49,788 | 40,296 |
For Capital Adequacy Purposes Ratio (as a percent) | 8.00% | 8.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 62,235 | 50,370 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 10.00% | 10.00% |
Tier 1 capital (to risk weighted assets) | ||
Actual Amount | 73,635 | 52,257 |
Actual Ratio (as a percent) | 11.83% | 10.37% |
For Capital Adequacy Purposes Amount | 24,894 | 20,148 |
For Capital Adequacy Purposes Ratio (as a percent) | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 37,341 | 30,222 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 6.00% | 6.00% |
Tier 1 capital (to average assets) | ||
Actual Amount | 73,635 | 52,257 |
Actual Ratio (as a percent) | 9.69% | 8.58% |
For Capital Adequacy Purposes Amount | 30,386 | 24,369 |
For Capital Adequacy Purposes Ratio (as a percent) | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $37,983 | $30,461 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 5.00% | 5.00% |
Subsequent_Events_Detail
Subsequent Events (Detail) (USD $) | 0 Months Ended | ||
Mar. 09, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
item | |||
Subsequent Events | |||
Total assets | $802,286,000 | $664,971,000 | |
Total loans | 597,278,000 | 490,158,000 | |
Total deposits | 638,743,000 | 573,938,000 | |
IBT | |||
Subsequent Events | |||
Total assets | 121,000,000 | ||
Total loans | 99,000,000 | ||
Total deposits | 104,000,000 | ||
Veritex Holdings, Inc. | |||
Subsequent Events | |||
Total assets | 121,528,000 | 74,897,000 | |
Subsequent event | IBT | |||
Subsequent Events | |||
Number of banking location in the Dallas metropolitan area. | 2 | ||
Number of common stock issues | 1,185,185 | ||
Payments in cash | $4,000,000 |
Parent_Company_Only_Financial_2
Parent Company Only Financial Statements (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
ASSETS | ||||
Cash and cash equivalents | $93,251 | $76,646 | $53,160 | $62,790 |
Other assets | 2,512 | 3,415 | ||
Total assets | 802,286 | 664,971 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Total liabilities | 688,974 | 598,732 | ||
Stockholders' equity: | ||||
Preferred stock | 8,000 | 8,000 | ||
Common stock | 95 | 58 | ||
Additional paid-in capital | 97,469 | 55,303 | ||
Retained earnings | 8,047 | 2,922 | ||
Unallocated Employee Stock Ownership Plan Shares | -401 | |||
Treasury stock | -70 | -70 | ||
Accumulated other comprehensive income | 172 | 26 | ||
Total stockholders' equity | 113,312 | 66,239 | 61,860 | 58,676 |
Total liabilities and stockholders' equity | 802,286 | 664,971 | ||
Veritex Holdings, Inc. | ||||
ASSETS | ||||
Cash and cash equivalents | 27,399 | 2,018 | 1,166 | |
Investment in subsidiaries | 93,897 | 72,579 | ||
Other assets | 232 | 300 | ||
Total assets | 121,528 | 74,897 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Other liabilities | 142 | 586 | ||
Other borrowings | 8,074 | 8,072 | ||
Total liabilities | 8,216 | 8,658 | ||
Stockholders' equity: | ||||
Preferred stock | 8,000 | 8,000 | ||
Common stock | 95 | 58 | ||
Additional paid-in capital | 97,469 | 55,303 | ||
Retained earnings | 8,047 | 2,922 | ||
Unallocated Employee Stock Ownership Plan Shares | -401 | |||
Treasury stock | -70 | -70 | ||
Accumulated other comprehensive income | 172 | 26 | ||
Total stockholders' equity | 113,312 | 66,239 | ||
Total liabilities and stockholders' equity | $121,528 | $74,897 |
Parent_Company_Only_Financial_3
Parent Company Only Financial Statements (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest income: | |||
Other | $2 | $2 | $8 |
Interest expense: | |||
Interest on borrowings | 498 | 254 | 386 |
Net interest income (expense) | 25,340 | 21,041 | 19,093 |
Noninterest expense: | |||
Salaries and employee benefits | 10,037 | 9,084 | 9,205 |
Other | 2,111 | 1,723 | 1,459 |
Total noninterest expense | 18,503 | 16,364 | 16,172 |
Net income from operations | 7,910 | 5,185 | 1,615 |
Income tax expense (benefit) | 2,705 | 1,777 | 136 |
Net income | 5,205 | 3,408 | 1,479 |
Veritex Holdings, Inc. | |||
Interest income: | |||
Other | 2 | 2 | |
Interest expense: | |||
Interest on borrowings | 379 | 63 | |
Net interest income (expense) | -377 | -61 | |
Noninterest expense: | |||
Salaries and employee benefits | 162 | 162 | |
Professional fees | 212 | 76 | |
Other | 17 | ||
Total noninterest expense | 391 | 238 | |
Net income from operations | -768 | -299 | |
Income tax expense (benefit) | -256 | -102 | |
(Loss) Income before equity in undistributed income of subsidiaries | -512 | -197 | |
Equity in undistributed income of subsidiaries | 5,717 | 3,605 | |
Net income | $5,205 | $3,408 |
Parent_Company_Only_Financial_4
Parent Company Only Financial Statements (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income | $5,205 | $3,408 | $1,479 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Net cash provided by operating activities | 2,233 | 6,141 | 1,633 |
Cash flows from investing activities: | |||
Net cash used in investing activities | -116,700 | -119,771 | -95,705 |
Cash flows from financing activities: | |||
Sale of common stock in initial public offering, net of offering cost of $4,574 | 35,791 | ||
Proceeds from issuance of common stock, net | 5,438 | 1,210 | 1,398 |
Purchase of common stock held in treasury | -70 | ||
Proceeds from payments on ESOP Loan | 118 | ||
Dividends paid on preferred stock | -80 | -60 | -100 |
Issuance of subordinated notes | 5,000 | ||
Net cash provided by financing activities | 131,072 | 137,116 | 84,442 |
Net increase (decrease) in cash and cash equivalents | 16,605 | 23,486 | -9,630 |
Cash and cash equivalents at beginning of year | 76,646 | 53,160 | 62,790 |
Cash and cash equivalents at end of period | 93,251 | 76,646 | 53,160 |
Veritex Holdings, Inc. | |||
Cash flows from operating activities: | |||
Net income | 5,205 | 3,408 | |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Amortization of debt costs | 2 | ||
Equity in undistributed net income of Bank | -5,717 | -3,605 | |
Decrease in other assets | 68 | 389 | |
(Decrease) Increase in other liabilities | -444 | 580 | |
Net cash provided by operating activities | -886 | 772 | |
Cash flows from investing activities: | |||
Capital investment in subsidiaries | -15,000 | -6,000 | |
Net cash used in investing activities | -15,000 | -6,000 | |
Cash flows from financing activities: | |||
Sale of common stock in initial public offering, net of offering cost of $4,574 | 35,791 | ||
Proceeds from issuance of common stock, net | 5,438 | 1,210 | |
Purchase of common stock held in treasury | -70 | ||
Proceeds from payments on ESOP Loan | 118 | ||
Dividends paid on preferred stock | -80 | -60 | |
Issuance of subordinated notes | 5,000 | ||
Net cash provided by financing activities | 41,267 | 6,080 | |
Net increase (decrease) in cash and cash equivalents | 25,381 | 852 | |
Cash and cash equivalents at beginning of year | 2,018 | 1,166 | |
Cash and cash equivalents at end of period | $27,399 | $2,018 |
Parent_Company_Only_Financial_5
Parent Company Only Financial Statements (Parenthetical) (Veritex Holdings, Inc., USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Veritex Holdings, Inc. | |
Condensed Cash Flow Statements, Captions [Line Items] | |
Offering costs | $4,574 |