Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 24, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Veritex Holdings, Inc. | |
Entity Central Index Key | 1,501,570 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 15,233,709 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and due from banks | $ 28,687 | $ 15,631 |
Interest bearing deposits in other banks | 144,459 | 219,160 |
Total cash and cash equivalents | 173,146 | 234,791 |
Investment securities | 134,708 | 102,559 |
Loans held for sale | 4,118 | 5,208 |
Loans, net of allowance for loan losses of $9,740 and $8,524, respectively | 1,112,688 | 983,318 |
Accrued interest receivable | 3,333 | 2,907 |
Bank-owned life insurance | 20,369 | 20,077 |
Bank premises, furniture and equipment, net | 17,978 | 17,413 |
Non-marketable equity securities | 7,407 | 7,366 |
Investment in unconsolidated subsidiary | 93 | 93 |
Other real estate owned | 493 | 662 |
Intangible assets, net of accumulated amortization of $2,544 and $2,198, respectively | 2,171 | 2,181 |
Goodwill | 26,865 | 26,865 |
Other assets | 5,220 | 5,067 |
Total assets | 1,508,589 | 1,408,507 |
Deposits: | ||
Noninterest-bearing | 337,057 | 327,614 |
Interest-bearing | 874,050 | 792,016 |
Total deposits | 1,211,107 | 1,119,630 |
Accounts payable and accrued expenses | 2,574 | 2,914 |
Accrued interest payable and other liabilities | 1,032 | 534 |
Advances from Federal Home Loan Bank | 38,235 | 38,306 |
Junior subordinated debentures | 3,093 | 3,093 |
Subordinated notes | 4,946 | 4,942 |
Total liabilities | 1,260,987 | 1,169,419 |
Commitments and contingencies (Note 6) | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value; 75,000,000 shares authorized at June 30, 2017 and December 31, 2016; 15,233,010 and 15,195,328 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively (excluding 10,000 shares held in treasury) | 152 | 152 |
Additional paid-in capital | 211,901 | 211,173 |
Retained earnings | 36,003 | 29,290 |
Unallocated Employee Stock Ownership Plan shares; 18,783 and 18,783 shares at June 30, 2017 and December 31, 2016, respectively | (209) | (209) |
Accumulated other comprehensive loss | (175) | (1,248) |
Treasury stock, 10,000 shares at cost | (70) | (70) |
Total stockholders’ equity | 247,602 | 239,088 |
Total liabilities and stockholders’ equity | $ 1,508,589 | $ 1,408,507 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for loan losses | $ 9,740 | $ 8,524 |
Intangible assets, accumulated amortization | $ 2,544 | $ 2,198 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 15,233,010 | 15,195,328 |
Common stock, shares outstanding | 15,233,010 | 15,195,328 |
Unallocated Employee Stock Ownership Plan shares, shares | 18,783 | 18,783 |
Treasury stock, shares | 10,000 | 10,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Interest income: | ||||
Interest and fees on loans | $ 13,024 | $ 11,052 | $ 24,907 | $ 21,407 |
Interest on investment securities | 735 | 344 | 1,310 | 679 |
Interest on deposits in other banks | 548 | 80 | 1,158 | 173 |
Interest on other | 0 | 1 | 1 | 2 |
Total interest income | 14,307 | 11,477 | 27,376 | 22,261 |
Interest expense: | ||||
Interest on deposit accounts | 1,742 | 1,072 | 3,389 | 2,007 |
Interest on borrowings | 189 | 177 | 358 | 335 |
Total interest expense | 1,931 | 1,249 | 3,747 | 2,342 |
Net interest income | 12,376 | 10,228 | 23,629 | 19,919 |
Provision for loan losses | 943 | 527 | 1,833 | 1,372 |
Net interest income after provision for loan losses | 11,433 | 9,701 | 21,796 | 18,547 |
Noninterest income: | ||||
Service charges and fees on deposit accounts | 555 | 443 | 1,064 | 877 |
Gain on sales of investment securities | 0 | 0 | 0 | 15 |
Gain on sales of loans | 815 | 620 | 1,562 | 1,282 |
Loss on sale of other assets owned | (8) | 0 | (8) | 0 |
Bank-owned life insurance | 186 | 191 | 373 | 384 |
Other | 218 | 158 | 310 | 227 |
Total noninterest income | 1,766 | 1,412 | 3,301 | 2,785 |
Noninterest expense: | ||||
Salaries and employee benefits | 3,642 | 3,589 | 7,550 | 6,763 |
Occupancy and equipment | 1,015 | 894 | 2,026 | 1,795 |
Professional fees | 1,188 | 503 | 1,986 | 1,076 |
Data processing and software expense | 372 | 270 | 732 | 554 |
FDIC assessment fees | 393 | 132 | 651 | 269 |
Marketing | 225 | 211 | 469 | 411 |
Other assets owned expenses and write-downs | 13 | 55 | 38 | 130 |
Amortization of intangibles | 95 | 95 | 190 | 190 |
Telephone and communications | 106 | 100 | 208 | 197 |
Other | 733 | 452 | 1,382 | 892 |
Total noninterest expense | 7,782 | 6,301 | 15,232 | 12,277 |
Net income from operations | 5,417 | 4,812 | 9,865 | 9,055 |
Income tax expense | 1,802 | 1,639 | 3,152 | 3,069 |
Net income | $ 3,615 | $ 3,173 | $ 6,713 | $ 5,986 |
Basic earnings per share (in dollars per share) | $ 0.24 | $ 0.30 | $ 0.44 | $ 0.56 |
Diluted earnings per share (in dollars per share) | $ 0.23 | $ 0.29 | $ 0.43 | $ 0.55 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 3,615 | $ 3,173 | $ 6,713 | $ 5,986 |
Other comprehensive income: | ||||
Unrealized gains on securities available for sale arising during the period, net | 1,318 | 305 | 1,622 | 663 |
Reclassification adjustment for net gains included in net income | 0 | 0 | 0 | 15 |
Other comprehensive income before tax | 1,318 | 305 | 1,622 | 648 |
Income tax expense | 445 | 104 | 549 | 220 |
Other comprehensive income, net of tax | 873 | 201 | 1,073 | 428 |
Comprehensive income | $ 4,488 | $ 3,374 | $ 7,786 | $ 6,414 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Unallocated Employee Stock Ownership Plan Shares | Treasury Stock |
Beginning balance at Dec. 31, 2015 | $ 132,046 | $ 107 | $ 115,721 | $ 16,739 | $ (142) | $ (309) | $ (70) |
Beginning balance (in shares) at Dec. 31, 2015 | 10,712,472 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Restricted stock units vested, net of 7,103 and 4,171 shares withheld to cover tax withholdings for June 30, 2017 and 2016, respectively (in shares) | 15,391 | ||||||
Restricted stock units vested, net of 7,103 and 4,171 shares withheld to cover tax withholdings June 30, 2017 and 2016, respectively | (73) | (73) | |||||
Stock based compensation | 463 | 463 | |||||
Net income | 5,986 | 5,986 | |||||
Other comprehensive income | 428 | 428 | |||||
Ending balance at Jun. 30, 2016 | 138,850 | $ 107 | 116,111 | 22,725 | 286 | (309) | (70) |
Ending balance (in shares) at Jun. 30, 2016 | 10,727,863 | ||||||
Beginning balance at Dec. 31, 2016 | $ 239,088 | $ 152 | 211,173 | 29,290 | (1,248) | (209) | (70) |
Beginning balance (in shares) at Dec. 31, 2016 | 15,195,328 | 15,195,328 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Restricted stock units vested, net of 7,103 and 4,171 shares withheld to cover tax withholdings for June 30, 2017 and 2016, respectively (in shares) | 22,233 | ||||||
Restricted stock units vested, net of 7,103 and 4,171 shares withheld to cover tax withholdings June 30, 2017 and 2016, respectively | $ (191) | $ (191) | |||||
Exercise of employee stock options, net 1,095 shares withheld to cover tax withholdings (in shares) | 15,449 | ||||||
Exercise of employee stock options, net 1,095 shares withheld to cover tax withholdings | 144 | $ 144 | |||||
Offering costs from sale of common stock | (16) | (16) | |||||
Stock based compensation | 791 | 791 | |||||
Net income | 6,713 | 6,713 | |||||
Other comprehensive income | 1,073 | 1,073 | |||||
Ending balance at Jun. 30, 2017 | $ 247,602 | $ 152 | $ 211,901 | $ 36,003 | $ (175) | $ (209) | $ (70) |
Ending balance (in shares) at Jun. 30, 2017 | 15,233,010 | 15,233,010 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parenthetical) - shares | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Restricted stock units | ||
Shares withheld to cover tax withholdings | 7,103 | 4,171 |
Common Stock | ||
Shares withheld to cover tax withholdings | 22,233 | 15,391 |
Shares withheld to cover tax withholdings | 1,095 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 6,713 | $ 5,986 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 877 | 808 |
Provision for loan losses | 1,833 | 1,372 |
Accretion of loan purchase discount | (190) | (243) |
Stock-based compensation expense | 791 | 463 |
Excess tax benefit from stock compensation | (214) | 0 |
Net amortization of premiums on investment securities | 634 | 431 |
Change in cash surrender value of bank-owned life insurance | (292) | (308) |
Net gain on sales of investment securities | 0 | (15) |
Gain on sales of loans held for sale | (515) | (775) |
Gain on sales of SBA loans | (1,047) | (507) |
Net loss on sales of other real estate owned | 8 | 0 |
Amortization of subordinated note discount | 4 | 1 |
Net originations of loans held for sale | (20,336) | (30,203) |
Write down on foreclosed assets | 0 | 114 |
Proceeds from sales of loans held for sale | 21,941 | 28,823 |
Deferred tax benefit | (320) | 0 |
Increase in accrued interest receivable and other assets | (876) | (1,360) |
Increase (decrease) in accounts payable, accrued expenses, accrued interest payable and other liabilities | 158 | (378) |
Net cash provided by operating activities | 9,169 | 4,209 |
Cash flows from investing activities: | ||
Purchases of securities available for sale | (40,354) | (26,706) |
Sales of securities available for sale | 0 | 8,378 |
Proceeds from maturities, calls and pay downs of investment securities | 9,194 | 10,696 |
Purchases of non-marketable equity securities, net | (41) | (2,868) |
Net loans originated | (145,758) | (109,246) |
Proceeds from sale of SBA loans | 15,792 | 2,397 |
Net additions to bank premises and equipment | (1,151) | (344) |
Purchase of other real estate owned | (336) | 0 |
Proceeds from sales of other real estate owned | 497 | 0 |
Net cash used in investing activities | (162,157) | (117,693) |
Cash flows from financing activities: | ||
Net change in deposits | 91,477 | 159,319 |
Net (decrease) increase in advances from Federal Home Loan Bank | (71) | 9,931 |
Proceeds from exercise of employee stock options | 150 | 0 |
Costs from issuance of stock related to stock-based awards | (197) | (73) |
Offering costs paid in connection with issuance of common stock | (16) | 0 |
Net cash provided by financing activities | 91,343 | 169,177 |
Net (decrease) increase in cash and cash equivalents | (61,645) | 55,693 |
Cash and cash equivalents at beginning of period | 234,791 | 71,551 |
Cash and cash equivalents at end of period | $ 173,146 | $ 127,244 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Nature of Organization Veritex Holdings, Inc. (“Veritex” or the “Company”), 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, formerly known as Veritex Community Bank, National Association (the “Bank”), is a Texas state banking organization, with corporate offices in Dallas, Texas, and currently operates eleven 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 Board of Governors of the Federal Reserve System are the primary regulators of the Company and the Bank, which perform periodic examinations to ensure regulatory compliance. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Veritex and the Bank as its wholly-owned subsidiary. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”), but do not include all of the information and footnotes required for complete financial statements. In management’s opinion, these interim unaudited condensed consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair statement of the Company’s condensed consolidated financial position at June 30, 2017 and December 31, 2016 , condensed consolidated results of operations for the three and six months ended June 30, 2017 and 2016 , condensed consolidated stockholders’ equity for the six months ended June 30, 2017 and 2016 and condensed consolidated cash flows for the six months ended June 30, 2017 and 2016 . Accounting measurements at interim dates inherently involve greater reliance on estimates than at year end and the results for the interim periods shown in this report are not necessarily indicative of results to be expected for the full year due in part to global economic and financial market conditions, interest rates, access to sources of liquidity, market competition and interruptions of business processes. These interim unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2016 included within the Company’s Form 10-K as filed with the Securities and Exchange Commission on March 10, 2017. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. These estimates and assumptions may also affect disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Segment Reporting The Company has one reportable segment. All of the Company’s activities are interrelated, and each activity is dependent on the other and assessed based on how each of the activities of the Company supports the others. For example, lending is dependent upon the ability of the Company to fund itself with deposits and borrowings while managing interest rate and credit risk. Accordingly, all significant operating decisions are based upon analysis of the Company as one segment or unit. The Company’s chief operating decision-maker, the CEO, uses the consolidated results to make operating and strategic decisions. Reclassifications Effective January 1, 2017, the Company adopted ASU 2016-09. Per ASU 2016-09 cash paid by an employer when directly withholding shares for tax-withholding purposes should be classified as a financing activity and for presentation purposes be applied retrospectively. For the six months ended June 30, 2016, the Company moved these costs from the accrued interest receivable and other assets line item in the cash flows from operating activities to the costs from issuance of stock related to stock-based awards line item on the cash flows from financing activities section on the cash flow statement. 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 three and six months ended June 30, 2017 and 2016 : Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Earnings (numerator) Net income $ 3,615 $ 3,173 $ 6,713 $ 5,986 Shares (denominator) Weighted average shares outstanding for basic EPS (thousands) 15,211 10,696 15,205 10,695 Dilutive effect of employee stock-based awards 426 298 428 283 Adjusted weighted average shares outstanding 15,637 10,994 15,633 10,978 Earnings per share: Basic $ 0.24 $ 0.30 $ 0.44 $ 0.56 Diluted $ 0.23 $ 0.29 $ 0.43 $ 0.55 For the six months ended June 30, 2017 there were no exclusions from the diluted EPS weighted average shares and for the six months ended June 30, 2016 there were 117,624 shares excluded from the diluted EPS, as the inclusion of those shares would have been anti-dilutive. Recent Accounting Pronouncements ASU 2017-04 “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”) eliminates Step 2 from the goodwill impairment test. In addition, the amendment eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. For pubic companies, ASU 2017-04 is effective for fiscal years beginning after December 15, 2019 with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is in process of evaluating the impact of this pronouncement, which is not expected to have a significant impact on the consolidated financial statements. ASU 2016-18 “Statement of Cash Flows (Topic 230): Restricted Cash” (“ASU 2016-18”) requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. For public companies, ASU 2016-18 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company is in process of evaluating the impact of this pronouncement, which is not expected to have a significant impact on the consolidated financial statements. ASU 2016-13 “Financial Instruments —Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”) amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available for sale debt securities, credit losses should be measured in a manner similar to current GAAP, however Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. This Accounting Standards Update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. For public business entities, this ASU is effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods therein. The Company is continuing to evaluate the impact of the adoption of ASU 2016-03 and is uncertain of the impact on the consolidated financial statements at this point in time. ASU 2016-09 “Compensation —Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”) simplifies several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Per ASU 2016-09: (1) all excess tax benefits and tax deficiencies should be recognized as income tax expense or benefit in the income statement, rather than in additional paid-in capital under current guidance; (2) excess tax benefits should be classified along with other income tax cash flows as an operating activity on the statement of cash flows, rather than as a separate cash inflow from financing activities and cash outflow from operating activities under current guidance; (3) cash paid by an employer when directly withholding shares for tax-withholding purposes should be classified as a financing activity; and (4) an entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest, as under current guidance, or account for forfeitures when they occur. For public business entities, this ASU is effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods therein. Effective January 1, 2017, the Company adopted ASU 2016-09. For the three and six months ended June 30, 2017, the Company recognized an excess income tax benefit of $42 and $214 that reduced the income tax provision and increased net income on the condensed consolidated statements of income. The Company prospectively applied the guidance for the presentation of excess tax benefits as an operating cash flow and included the $214 excess income tax benefit as an operating activity on the condensed consolidated statement of cash flows for the six months ended June 30, 2017. In addition, the Company retrospectively applied the guidance for the presentation of the cash paid by an employer when directly withholding shares for tax-withholding purposes be classified as a financing activity on the condensed consolidated statement of cash flows for the six months ended June 30, 2017 and 2016. Finally, the Company elected to account for forfeitures as they occur. ASU 2016-02 “Leases (Topic 842)” (“ASU 2016-02”) is intended to improve the reporting of leasing transactions to provide users of financial statements with more decision-useful information. ASU 2016-02 will require organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is in process of evaluating the impact of this pronouncement, which is not expected to have a significant impact on the consolidated financial statements. ASU 2016-01 “Financial Instruments─Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”) amends certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (vii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale. This update will be effective for the Company on January 1, 2018. The Company is in process of evaluating the impact of this pronouncement, which 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. The original effective date for ASU 2014-09 was for annual and interim periods beginning after December 15, 2016. However, in August 2015, the FASB issued ASU 2015-14, which deferred the effective date by one year, therefore it is now effective for interim and annual reporting periods beginning after December 15, 2017. The Company will adopt the guidance in the first quarter of 2018 using the modified retrospective application with a cumulative-effect adjustment, if such adjustment is significant. While the guidance will replace most existing revenue recognition guidance in GAAP, the ASU is not applicable to financial instruments and, therefore, will not impact a majority of the Company’s revenue, including net interest income. Our implementation efforts to date include identification of revenue streams within the scope of the guidance, and we have begun evaluation of revenue contracts and related accounting policies. |
Statement of Cash Flows
Statement of Cash Flows | 6 Months Ended |
Jun. 30, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Statement of Cash Flows | Statement of Cash Flows Other supplemental cash flow information is presented below: Six Months Ended June 30, 2017 2016 Supplemental Disclosures of Cash Flow Information: Cash paid for interest $ 3,745 $ 2,329 Cash paid for income taxes 3,500 4,650 Supplemental Disclosures of Non-Cash Flow Information: Net foreclosure of other real estate owned and repossessed assets $ — $ 114 |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities Debt and equity securities have been classified in the condensed consolidated balance sheets according to management’s intent. The carrying amount of securities and their approximate fair values are as follows: June 30, 2017 Amortized Gross Gross Fair Value Available for Sale U.S. government agencies $ 691 $ — $ 10 $ 681 Corporate securities 7,500 197 — $ 7,697 Municipal securities 14,914 42 126 14,830 Mortgage-backed securities 65,814 115 340 65,589 Collateralized mortgage obligations 45,370 158 316 45,212 Asset-backed securities 688 11 — 699 $ 134,977 $ 523 $ 792 $ 134,708 December 31, 2016 Amortized Gross Gross Fair Value Available for Sale U.S. government agencies $ 732 $ — $ 36 $ 696 Municipal securities 14,540 2 500 14,042 Mortgage-backed securities 49,907 83 871 49,119 Collateralized mortgage obligations 38,507 32 612 37,927 Asset-backed securities 764 11 — 775 $ 104,450 $ 128 $ 2,019 $ 102,559 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: June 30, 2017 Less Than 12 Months 12 Months or More Totals Fair Unrealized Fair Unrealized Fair Unrealized Available for Sale U.S. government agencies $ — $ — $ 681 $ 10 $ 681 $ 10 Municipal securities 7,052 107 1,346 19 8,398 126 Mortgage-backed securities 42,127 289 3,937 51 46,064 340 Collateralized mortgage obligations 28,283 293 1,473 23 29,756 316 $ 77,462 $ 689 $ 7,437 $ 103 $ 84,899 $ 792 December 31, 2016 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 $ — $ — $ 696 $ 36 $ 696 $ 36 Municipal securities 12,060 478 518 22 12,578 500 Mortgage-backed securities 37,274 802 6,848 69 44,122 871 Collateralized mortgage obligations 29,618 584 1,618 28 31,236 612 $ 78,952 $ 1,864 $ 9,680 $ 155 $ 88,632 $ 2,019 The number of investment positions in an unrealized loss position totaled 64 and 72 at June 30, 2017 and December 31, 2016 , respectively. 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 June 30, 2017 . 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, as of the dates indicated, are shown in the table 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. June 30, 2017 Available For Sale Amortized Fair Due in one year or less $ — $ — Due from one year to five years 3,928 3,952 Due from five years to ten years 4,504 4,435 Due after ten years 7,173 7,124 15,605 15,511 Corporate securities 7,500 7,697 Mortgage-backed securities 65,814 65,589 Collateralized mortgage obligations 45,370 45,212 Asset-backed securities 688 699 $ 134,977 $ 134,708 December 31, 2016 Available For Sale Amortized Fair Due in one year or less $ — $ — Due from one year to five years 4,009 3,974 Due from five years to ten years 3,522 3,346 Due after ten years 7,741 7,418 15,272 14,738 Mortgage-backed securities 49,907 49,119 Collateralized mortgage obligations 38,507 37,927 Asset-backed securities 764 775 $ 104,450 $ 102,559 Proceeds from sales of investment securities available for sale and gross gains and losses for the six months ended June 30, 2017 and 2016 were as follows: Six Months Ended June 30, 2017 2016 Proceeds from sales $ — $ 8,378 Gross realized gains — 43 Gross realized losses — 40 There were no gross gains from calls of investment securities included in gain on sale of investment securities in the accompanying condensed consolidated statements for the six months ended June 30, 2017 and $12 gross gains from calls of investment securities included in the condensed consolidated statements for the six months ended June 30, 2016 . There was a blanket floating lien on all securities held by the Company to secure Federal Home Loan Bank advances as of June 30, 2017 and December 31, 2016 . |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses Loans in the accompanying condensed consolidated balance sheets are summarized as follows: June 30, December 31, Real estate: Construction and land $ 136,332 $ 162,614 Farmland 8,448 8,262 1 - 4 family residential 157,823 140,137 Multi-family residential 38,265 14,683 Commercial Real Estate 430,895 370,696 Commercial 347,017 291,416 Consumer 3,688 4,089 1,122,468 991,897 Deferred loan fees (40 ) (55 ) Allowance for loan losses (9,740 ) (8,524 ) $ 1,112,688 $ 983,318 Included in the net loan portfolio as of June 30, 2017 and December 31, 2016 is an accretable discount related to loans acquired within a business combination in the approximate amounts of $376 and $566 , respectively. The discount is being accreted into income using the interest method over the life of the loans. 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 June 30, 2017 and December 31, 2016 . 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 the accrual of interest 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 aggregated by class of loans, as of June 30, 2017 and December 31, 2016 , are as follows: June 30, December 31, Real estate: Construction and land $ — $ — Farmland — — 1 - 4 family residential — — Multi-family residential — — Commercial Real Estate 727 — Commercial 778 930 Consumer 9 11 $ 1,514 $ 941 During the six months ended June 30, 2017 and 2016 , interest income not recognized on non-accrual loans was minimal. An aging analysis of past due loans, aggregated by class of loans, as of June 30, 2017 and December 31, 2016 is as follows: June 30, 2017 30 to 59 Days 60 to 89 Days 90 Days or Greater Total Past Due Total Current Total Total 90 Days Past Due and Still Accruing Real estate: Construction and land $ 492 $ — $ — $ 492 $ 135,840 $ 136,332 $ — Farmland — — — — 8,448 8,448 — 1 - 4 family residential 815 — — 815 157,008 157,823 — Multi-family residential — — — — 38,265 38,265 — Commercial Real Estate — — 727 727 430,168 430,895 — Commercial 137 392 781 1,310 345,707 347,017 15 Consumer 9 — — 9 3,679 3,688 — $ 1,453 $ 392 $ 1,508 $ 3,353 $ 1,119,115 $ 1,122,468 $ 15 December 31, 2016 30 to 59 Days 60 to 89 Days 90 Days or Greater Total Past Due Total Current Total Total 90 Days Past Due and Still Accruing Real estate: Construction and land $ 1,047 $ — $ — $ 1,047 $ 161,567 $ 162,614 $ — Farmland — — — — 8,262 8,262 — 1 - 4 family residential 510 214 — 724 139,413 140,137 — Multi-family residential — — — — 14,683 14,683 — Commercial Real Estate — — 754 754 369,942 370,696 754 Commercial 1,344 438 532 2,314 289,102 291,416 81 Consumer 41 — — 41 4,048 4,089 — $ 2,942 $ 652 $ 1,286 $ 4,880 $ 987,017 $ 991,897 $ 835 Loans past due 90 days and still accruing, decrease d from $835 as of December 31, 2016 to $15 as of June 30, 2017 . These loans are also considered well-secured and in the process of collection with plans in place for the borrowers to bring the notes fully current. The Company believes that it will collect all principal and interest due on each of the loans past due 90 days and still accruing. 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 (“PCI”) loans and TDRs, at June 30, 2017 and December 31, 2016 are summarized in the following tables. June 30, 2017 Unpaid Recorded Recorded Total Related Average Real estate: Construction and land $ — $ — $ — $ — $ — $ — Farmland — — — — — — 1 - 4 family residential 163 163 — 163 — 212 Multi-family residential — — — — — — Commercial Real Estate 1,104 1,104 — 1,104 — 1,140 Commercial 793 540 253 793 137 886 Consumer 86 77 9 86 1 89 Total $ 2,146 $ 1,884 $ 262 $ 2,146 $ 138 $ 2,327 December 31, 2016 Unpaid Recorded Recorded Total Related Average Real estate: Construction and land $ — $ — $ — $ — $ — $ — Farmland — — — — — — 1 - 4 family residential 164 164 — 164 — 265 Multi-family residential — — — — — — Commercial Real Estate 382 382 — 382 — 440 Commercial 955 381 574 955 246 463 Consumer 92 81 11 92 4 12 Total $ 1,593 $ 1,008 $ 585 $ 1,593 $ 250 $ 1,180 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 six months ended June 30, 2017 and 2016 , 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 TDRs are based on individual facts and circumstances. Loan modifications that are included as TDRs 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 TDRs was $653 and $822 as of June 30, 2017 and December 31, 2016 , respectively. During the six months ended June 30, 2017 and 2016 no loans were modified as TDRs. 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 six months ended June 30, 2017 and none for the six months ended June 30, 2016 . A default for purposes of this disclosure is a TDR loan in which the borrower is 90 days past due or results in the foreclosure and repossession of the applicable collateral. Interest income recorded during the six months ended June 30, 2017 and 2016 on the restructured loans and interest income that would have been recorded had the terms of the loan not been modified was minimal. The Company has not committed to lend additional amounts to customers with outstanding loans classified as TDRs as of June 30, 2017 or December 31, 2016 . Credit Quality Indicators From a credit risk standpoint, the Company classifies its loans in the following 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 by management 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 believed 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 the 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 in 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. The following tables summarize the Company’s internal ratings of its loans, including purchased credit impaired loans, as of June 30, 2017 and December 31, 2016 : June 30, 2017 Pass Special Substandard Doubtful Total Real estate: Construction and land $ 136,332 $ — $ — $ — $ 136,332 Farmland 8,448 — — — 8,448 1 - 4 family residential 157,564 — 259 — 157,823 Multi-family residential 38,265 — — — 38,265 Commercial Real Estate 424,247 5,358 1,290 — 430,895 Commercial 338,701 6,990 1,210 116 347,017 Consumer 3,672 — 16 — 3,688 Total $ 1,107,229 $ 12,348 $ 2,775 $ 116 $ 1,122,468 December 31, 2016 Pass Special Substandard Doubtful Total Real estate: Construction and land $ 162,614 $ — $ — $ — $ 162,614 Farmland 8,262 — — — 8,262 1 - 4 family residential 139,212 710 215 — 140,137 Multi-family residential 14,683 — — — 14,683 Commercial Real Estate 368,370 2,326 — — 370,696 Commercial 289,589 686 1,034 107 291,416 Consumer 4,078 — 11 — 4,089 Total $ 986,808 $ 3,722 $ 1,260 $ 107 $ 991,897 An analysis of the allowance for loan losses for the six months ended June 30, 2017 and 2016 and year ended December 31, 2016 is as follows: Six Months Ended June 30, 2017 Year Ended December 31, 2016 Six Months Ended June 30, 2016 Balance at beginning of year $ 8,524 $ 6,772 $ 6,772 Provision charged to earnings 1,833 2,050 1,372 Charge-offs (622 ) (333 ) (249 ) Recoveries 5 35 15 Net charge-offs (617 ) (298 ) (234 ) Balance at end of year $ 9,740 $ 8,524 $ 7,910 The allowance for loan losses as a percentage of total loans was 0.87% , 0.86% and 0.85% as of June 30, 2017 , December 31, 2016 , and June 30, 2016 , respectively. The following tables summarize the activity in the allowance for loan losses by portfolio segment for the periods indicated: For the Six Months Ended June 30, 2017 Real Estate Construction, Residential Commercial Real Estate Commercial Consumer Total Balance at beginning of period $ 1,415 $ 1,116 $ 3,003 $ 2,955 $ 35 $ 8,524 Provision (recapture) charged to earnings (291 ) 370 554 1,205 (5 ) 1,833 Charge-offs — (11 ) — (611 ) — (622 ) Recoveries — — — 5 — 5 Net charge-offs (recoveries) — (11 ) — (606 ) — (617 ) Balance at end of period $ 1,124 $ 1,475 $ 3,557 $ 3,554 $ 30 $ 9,740 Period-end amount allocated to: Specific reserves: Impaired loans $ — $ — $ — $ 137 $ 1 $ 138 Total specific reserves — — — 137 1 138 General reserves 1,124 1,475 3,557 3,417 29 9,602 Total $ 1,124 $ 1,475 $ 3,557 $ 3,554 $ 30 $ 9,740 For the Year Ended December 31, 2016 Real Estate Construction, Residential Commercial Real Estate Commercial Consumer Total Balance at beginning of period $ 1,104 $ 1,124 $ 2,189 $ 2,324 $ 31 $ 6,772 Provision (recapture) charged to earnings 311 (8 ) 814 913 20 2,050 Charge-offs — — — (314 ) (19 ) (333 ) Recoveries — — — 32 3 35 Net charge-offs (recoveries) — — — (282 ) (16 ) (298 ) Balance at end of period $ 1,415 $ 1,116 $ 3,003 $ 2,955 $ 35 $ 8,524 Period-end amount allocated to: Specific reserves: Impaired loans $ — $ — $ — $ 246 $ 4 $ 250 Total specific reserves — — — 246 4 250 General reserves 1,415 1,116 3,003 2,709 31 8,274 Total $ 1,415 $ 1,116 $ 3,003 $ 2,955 $ 35 $ 8,524 For the Six Months Ended June 30, 2016 Real Estate Construction, Residential Commercial Real Estate Commercial Consumer Total Balance at beginning of year $ 1,104 $ 1,124 $ 2,189 $ 2,324 $ 31 $ 6,772 Provision (recapture) charged to earnings 286 67 397 618 4 1,372 Charge-offs — — — (240 ) (9 ) (249 ) Recoveries — — — 14 1 15 Net charge-offs (recoveries) — — — (226 ) (8 ) (234 ) Balance at end of year $ 1,390 $ 1,191 $ 2,586 $ 2,716 $ 27 $ 7,910 Period-end amount allocated to: Specific reserves: Impaired loans $ — $ — $ — $ 80 $ 4 $ 84 Total specific reserves — — — 80 4 84 General reserves 1,390 1,191 2,586 2,636 23 7,826 Total $ 1,390 $ 1,191 $ 2,586 $ 2,716 $ 27 $ 7,910 The Company’s recorded investment in loans as of June 30, 2017 and December 31, 2016 related to the balance in the allowance for loan losses on the basis of the Company’s impairment methodology is as follows: June 30, 2017 Real Estate Construction, Residential Commercial Real Estate Commercial Consumer Total Loans individually evaluated for impairment $ — $ 163 $ 1,104 $ 793 $ 86 $ 2,146 Loans collectively evaluated for impairment 144,780 195,925 429,791 346,224 3,602 1,120,322 Total $ 144,780 $ 196,088 $ 430,895 $ 347,017 $ 3,688 $ 1,122,468 December 31, 2016 Real Estate Construction, Residential Commercial Real Estate Commercial Consumer Total Loans individually evaluated for impairment $ — $ 164 $ 382 $ 955 $ 92 $ 1,593 Loans collectively evaluated for impairment 170,876 154,656 370,314 290,461 3,997 990,304 Total $ 170,876 $ 154,820 $ 370,696 $ 291,416 $ 4,089 $ 991,897 The Company has acquired certain loans which experienced credit deterioration since origination which are PCI loans. Accretion on PCI loans is based on estimated future cash flows, regardless of contractual maturity. Servicing Assets At June 30, 2017 , the Company was servicing loans of approximately $44,720 . A summary of the changes in the related servicing assets are as follows: Six Months Ended June 30, 2017 2016 Balance at beginning of year $ 601 $ 426 Increase from loan sales 281 111 Amortization charged to income (88 ) (55 ) Balance at end of period $ 794 $ 482 The estimated fair value of the servicing assets approximated the carrying amount at June 30, 2017 , December 31, 2016 , and June 30, 2016 . Fair value is estimated by discounting estimated future cash flows from the servicing assets using discount rates that approximate current market rates over the expected lives of the loans being serviced. A valuation allowance is recorded when the fair value is below the carrying amount of the asset. At June 30, 2017 , there was no valuation allowance recorded. The Company may also receive a portion of subsequent interest collections on loans sold that exceed the contractual servicing fee. In that case, the Company records an interest-only strip based on its relative fair market value and the other components of the loans. There was no interest-only strip receivable recorded at June 30, 2017 and December 31, 2016 . |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s estimated annual effective tax rate, before the net impact of discrete items, was approximately 34.5% and 34.1% for the six months ended June 30, 2017 and 2016 , respectively. The Company’s effective tax rate, after including the net impact of discrete tax items, was approximately 32.0% and 33.9% , respectively, for the six months ended June 30, 2017 and 2016 . The Company’s provision was impacted by a net discrete tax benefit of $255 primarily associated with the recognition of excess tax benefit on share-based payment awards for the six months ended June 30, 2017 . The Company’s estimated annual effective tax rate, before the net impact of discrete items, was approximately 34.8% and 34.1% for the three months ended June 30, 2017 and 2016 , respectively. The Company’s effective tax rate, after including the net impact of discrete tax items, was approximately 33.3% and 34.1% , respectively, for the three months ended June 30, 2017 and 2016 . The Company’s provision was impacted by a net discrete tax benefit of $83 primarily associated with the recognition of excess tax benefit on share-based payment awards for the three months ended June 30, 2017 . 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. Included in the accompanying condensed consolidated balance sheet as of June 30, 2017 is a current tax liability of approximately $94 in accrued interest payable and other liabilities and a net deferred tax asset of approximately $3,452 in other assets. Included in the accompanying condensed consolidated balance sheets as of December 31, 2016 is a current tax receivable of $91 and a net deferred tax asset of $3,467 in other assets. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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. Rental expense related to these leases was approximately $881 and $684 for the six months ended June 30, 2017 and 2016 , respectively. |
Fair Value Disclosures
Fair Value Disclosures | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | 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, mortgage-backed securities, collateralized mortgage obligations, and asset-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 or trade execution data for similar securities, 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 June 30, 2017 and December 31, 2016 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Fair Value Level 1 Level 2 Level 3 Total As of June 30, 2017 Investment securities available for sale $ — $ 134,708 $ — $ 134,708 As of December 31, 2016 Investment securities available for sale $ — $ 102,559 $ — $ 102,559 There were no liabilities measured at fair value on a recurring basis as of June 30, 2017 or December 31, 2016 . There were no transfers between Level 2 and Level 3 during the six months ended June 30, 2017 and 2016 . 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 June 30, 2017 and December 31, 2016 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Fair Value Level 1 Level 2 Level 3 Total As of June 30, 2017 Assets: Impaired loans $ — $ — $ 2,008 $ 2,008 As of December 31, 2016 Assets: Impaired loans $ — $ — $ 1,343 $ 1,343 At June 30, 2017 , impaired loans had a carrying value of $2,146 , with $138 specific allowance for loan loss allocated. At December 31, 2016 , impaired loans had a carrying value of $1,593 , with $250 specific allowance for loan loss allocated. There were no liabilities measured at fair value on a non-recurring basis as of June 30, 2017 or December 31, 2016 . For Level 3 financial assets measured at fair value as of June 30, 2017 and December 31, 2016 , the significant unobservable inputs used in the fair value measurements were as follows: June 30, 2017 Valuation Unobservable Weighted Assets/Liabilities Fair Value Technique Input(s) Average Impaired loans $ 2,008 Collateral Method Adjustments for selling costs 8 % December 31, 2016 Valuation Unobservable Weighted Assets/Liabilities Fair Value Technique Input(s) Average Impaired loans $ 1,343 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 its 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 an estimate 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 valuation 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 amount of cash and cash equivalents approximates 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, 1-4 family residential), commercial real estate and commercial loans are estimated using discounted cash flow analysis, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Servicing assets : The estimated fair value of the servicing assets approximated the carrying amount at June 30, 2017 and December 31, 2016 . Fair value is estimated by discounting estimated future cash flows from the servicing assets using discount rates that approximate current market rates over the expected lives of the loans being serviced. A valuation allowance is recorded when the fair value is below the carrying amount of the asset. At June 30, 2017 and December 31, 2016 no valuation allowance was recorded. 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 condensed consolidated financial statements. The estimated fair values and carrying values of all financial instruments under current authoritative guidance as of June 30, 2017 and December 31, 2016 were as follows: June 30, December 31, 2017 2016 Carrying Fair Carrying Fair Financial assets: Level 1 inputs: Cash and cash equivalents $ 173,146 $ 173,146 $ 234,791 $ 234,791 Level 2 inputs: Investment securities 134,708 134,708 102,559 102,559 Loans held for sale 4,118 4,118 5,208 5,208 Accrued interest receivable 3,333 3,333 2,907 2,907 Bank-owned life insurance 20,369 20,369 20,077 20,077 Servicing asset 794 794 601 601 Non-marketable equity securities 7,407 7,407 7,366 7,366 Level 3 inputs: Loans, net 1,112,688 1,120,692 983,318 987,021 Financial liabilities: Level 2 inputs: Deposits $ 1,211,107 $ 1,158,631 $ 1,119,630 $ 1,085,888 Advances from FHLB 38,235 38,280 38,306 38,570 Accrued interest payable 125 125 141 141 Junior subordinated debentures 3,093 3,093 3,093 3,093 Subordinated notes 4,946 4,946 4,942 4,942 |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments with Off-Balance Sheet Risk | 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 condensed 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 June 30, 2017 and December 31, 2016 : June 30, December 31, 2017 2016 Commitments to extend credit $ 269,863 $ 236,919 Standby and commercial letters of credit 5,936 6,933 $ 275,799 $ 243,852 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 | 6 Months Ended |
Jun. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefits | 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 six months ended June 30, 2017 and 2016 . ESOP Effective January 1, 2012, the Company adopted the Veritex Community Bank 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 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 that 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 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 Company’s common stock. 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 condensed consolidated balance sheets. Compensation expense attributed to the ESOP contributions recorded in the accompanying condensed consolidated statements of income for the six months ended June 30, 2017 and 2016 was approximately $57 and $92 , respectively. The following is a summary of ESOP shares as of June 30, 2017 and December 31, 2016 : June 30, December 31, 2017 2016 Allocated shares 44,257 44,257 Unearned shares 18,783 18,783 Total ESOP shares 63,040 63,040 Fair value of unearned shares $ 495 $ 502 |
Stock and Incentive Plan
Stock and Incentive Plan | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock and Incentive Plan | Stock and Incentive Plan 2010 Stock Option and Equity Incentive Plan In 2010, the Company adopted the 2010 Stock Option and Equity Incentive Plan (the “2010 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 2010 Incentive Plan is 1,000,000 . The 2010 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 2010 Incentive Plan. The Company may grant either incentive stock options or nonqualified stock options as directed in the 2010 Incentive Plan. The Board of Directors authorized the 2010 Incentive Plan to 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 2010 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 2010 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. With the adoption of the 2014 Omnibus Plan, which is discussed below, the Company does not plan to award any additional grants or options under the 2010 Incentive Plan. During the six months ended June 30, 2017 and 2016 , the Company did not award any restricted stock units, non-performance-based stock options or performance-based stock options under the 2010 Incentive Plan. 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). Stock compensation expense related to the 2010 Incentive Plan recognized in the accompanying condensed consolidated statements of income totaled $20 and $42 for the three and six months ended June 30, 2017 and $29 and $57 for the three and six months ended June 30, 2016 , respectively. A summary of option activity under the 2010 Incentive Plan for the six months ended June 30, 2017 and 2016 , and changes during the period then ended is presented below: For the Six Months Ended June 30, 2017 Non-performance-based Stock Options Shares Underlying Options Weighted Exercise Price Weighted Average Contractual Term Outstanding at beginning of year 325,500 $ 10.15 4.56 years Granted during the period — — Forfeited during the period — — Canceled during the period — — Exercised during the period (15,000 ) 10.00 Outstanding at the end of period 310,500 $ 10.16 4.09 years Options exercisable at end of period 297,000 $ 10.12 4.00 years Weighted average fair value of options granted during the period $ — For the Six Months Ended June 30, 2016 Non-performance-based Stock Options Shares Underlying Options Weighted Exercise Price Weighted Average Contractual Term Outstanding at beginning of year 325,500 $ 10.15 5.56 years Granted during the period — — Forfeited during the period — — Exercised during the period — — Outstanding at the end of period 325,500 $ 10.15 5.06 years Options exercisable at end of period 298,200 $ 10.09 4.91 years Weighted average fair value of options granted during the period $ — As of June 30, 2017 , December 31, 2016 and June 30, 2016 , the aggregate intrinsic value was $5,022 , $5,390 and $1,911 , respectively, for outstanding non-performance-based stock options, $4,814 , $5,086 and $1,768 , respectively, for exercisable non-performance-based stock options. As of June 30, 2017 , December 31, 2016 and June 30, 2016 , there was approximately $15 , $21 and $36 , respectively, of unrecognized compensation expense related to non-performance-based stock options. The unrecognized compensation expense at June 30, 2017 is expected to be recognized over the remaining weighted average requisite service period of 1.00 year . A summary of the status of the Company’s restricted stock units under the 2010 Incentive Plan as of June 30, 2017 and 2016 , and changes during the six months then ended is as follows: 2017 2016 Shares Weighted Average Grant Date Fair Value Shares Weighted Nonvested at January 1, 27,750 $ 11.92 39,750 $ 11.34 Granted during the period — — — — Vested during the period (1,000 ) 10.85 (6,000 ) 10.00 Forfeited during the period (500 ) 10.85 — — Nonvested at June 30, 26,250 $ 11.98 33,750 $ 11.58 As of June 30, 2017 , December 31, 2016 and June 30, 2016 , there was $54 , $90 , and $132 , respectively, of total unrecognized compensation expense related to nonvested restricted stock units. The unamortized compensation expense as of June 30, 2017 is expected to be recognized over the remaining weighted average requisite service period of 0.74 years . The fair value of non-performance-based stock options that were exercised during the six months ended June 30, 2017 and 2016 was $422 and $0 , respectively. The fair value of restricted stock units that vested during the six months ended June 30, 2017 and 2016 was $26 and $97 , respectively. 2014 Omnibus Plan In September of 2014, the Company adopted an omnibus incentive plan or the 2014 Omnibus Plan (the “2014 Omnibus Plan”). The purpose of the 2014 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 2014 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 2014 Omnibus Plan is 1,000,000 . During the six months ended June 30, 2017 , the Company awarded 31,375 non-performance restricted stock units, 25,522 performance based restricted, and 65,440 non-performance-based stock options under the 2014 Omnibus Plan. During the six months ended June 30, 2016 , the Company awarded 22,060 non-performance based restricted stock units, and 34,190 market condition restricted stock units, and 71,286 non-performance-based stock options under the 2014 Omnibus Plan. The non-performance options generally vest equally over three years from the grant date. The performance-based restricted stock units include a market condition based on the Company’s total shareholder return relative to a market index that determines the number of restricted stock units that may vest equally over a three -year period from the date of grant.The non-performance restricted stock units fully vest over the requisite service period generally ranging from one to five years. 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 three and six months ended June 30, 2017 , compensation expense for option awards granted under the 2014 Omnibus Plan was approximately $97 and $194 , respectively. For the three and six months ended June 30, 2017 , compensation expense for restricted stock unit awards granted under the 2014 Omnibus Plan was approximately $277 and $555 respectively. For the three and six months ended June 30, 2016 , compensation expense for option awards granted under the 2014 Omnibus Plan was approximately $53 and $104 , respectively. For the three and six months ended June 30, 2016 , compensation expense for restricted stock unit awards granted under the 2014 Omnibus Plan was approximately $159 and $302 , respectively. 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: For the Six Months Ended June 30, 2017 2016 Dividend yield 0.00% 0.00% Expected life 5.0 to 7.5 years 5.0 to 6.5 years Expected volatility 32.10% to 37.55% 35.23% to 37.55% Risk-free interest rate 1.06% to 2.32% 1.26% to 2.01% The expected life is based on the 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 as well as the volatility of certain comparable public company peers. 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 the status of the Company’s stock options under the 2014 Omnibus Plan as of June 30, 2017 and 2016 , and changes during the six months ended is as follows: 2017 2016 Non-performance-based Stock Options Non-performance-based Stock Options Shares Weighted Weighted Shares Weighted Weighted Outstanding at beginning of year 128,366 $ 15.32 8.69 years 52,080 $ 14.35 9.12 years Granted during the period 65,440 26.89 71,286 15.88 Forfeited during the period (3,465 ) 21.24 — — Canceled during the period — — — — Exercised during the period (1,544 ) 15.00 — — Outstanding at the end of period 188,797 $ 19.22 8.63 years 123,366 $ 15.23 9.16 years Options exercisable at end of period 51,204 $ 14.96 7.93 years 14,693 $ 14.17 8.51 years Weighted average fair value of options granted during the period $ 10.22 $ 6.09 As of June 30, 2017 , December 31, 2016 and June 30, 2016 the aggregate intrinsic value was $1,342 , $1,462 and $97 , respectively, for outstanding stock options under the 2014 Omnibus Plan. As of June 30, 2017 , December 31, 2016 and June 30, 2016 the aggregate intrinsic value was $582 , $203 , and $27 , respectively, for exercisable stock options outstanding under the 2014 Omnibus Plan. A summary of the status of the Company’s non-performance based restricted stock units under the 2014 Omnibus Plan as of June 30, 2017 and 2016 , and changes during the six months ended is as follows: 2017 2016 Non-performance Based Non-performance Based Restricted Stock Units Restricted Stock Units Units Weighted Average Grant Date Fair Value Units Weighted Nonvested at January 1, 67,956 $ 13.79 70,919 $ 13.29 Granted during the period 31,375 27.49 22,060 15.63 Vested during the period (8,475 ) 25.42 (5,476 ) 16.07 Forfeited during the period (2,250 ) 27.93 — — Nonvested at June 30, 88,606 $ 17.17 87,503 $ 13.70 A summary of the status of the Company’s performance based restricted stock units under the 2014 Omnibus Plan as of June 30, 2017 and 2016 , and changes during the six months ended is as follows: 2017 2016 Performance Based Performance Based Restricted Stock Units Restricted Stock Units Units Weighted Average Grant Date Fair Value Units Weighted Nonvested at January 1, 51,197 $ 8.72 25,474 $ 9.45 Granted during the period 25,522 24.34 34,190 9.52 Vested during the period (19,861 ) 15.34 (8,467 ) 14.17 Forfeited during the period (2,014 ) 15.68 — — Nonvested at June 30, 54,844 $ 13.33 51,197 $ 8.72 As of June 30, 2017 , December 31, 2016 and June 30, 2016 there was $881 , $425 and $507 of total unrecognized compensation expense related to options awarded under the 2014 Omnibus Plan, respectively. As of June 30, 2017 , December 31, 2016 and June 30, 2016 there was $1,923 , $1,089 and $1,348 of total unrecognized compensation related to restricted stock units awarded under the 2014 Omnibus Plan, respectively. The fair value of the exercised non-performance-based stock options, vested non-performance restricted stock units, and vested performance based restricted stock units during the six months ended June 30, 2017 was $41 , $233 , and $530 , respectively. For the same period in 2016 the fair value of exercised non-performance-based stock options, vested non-performance restricted stock units, and vested performance based restricted stock units was $0 , $87 , and $137 , respectively. The compensation expense related to these options and restricted stock units is expected to be recognized over the remaining weighted average requisite service periods of 2.45 and 2.44 years, respectively. |
Significant Concentrations of C
Significant Concentrations of Credit Risk | 6 Months Ended |
Jun. 30, 2017 | |
Risks and Uncertainties [Abstract] | |
Significant Concentrations of Credit Risk | 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. |
Capital Requirements and Restri
Capital Requirements and Restrictions on Retained Earnings | 6 Months Ended |
Jun. 30, 2017 | |
Banking and Thrift [Abstract] | |
Capital Requirements and Restrictions on Retained Earnings | Capital Requirements and Restrictions on Retained Earnings Under U.S. 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 Company on a consolidated basis and the Bank are 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 Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities, and certain off balance sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. In July 2013, the Federal Reserve published final rules for the adoption of the Basel III regulatory capital framework (the “Basel III Capital Rules”). The Basel III Capital Rules, among other things, (i) introduce a new capital measure called “Common Equity Tier 1” (“CET1”), (ii) specify that Tier 1 capital consist of Common Equity Tier 1 and “Additional Tier 1 Capital” instruments meeting specified requirements, (iii) define Common Equity Tier 1 narrowly by requiring that most deductions/adjustments to regulatory capital measures be made to Common Equity Tier 1 and not to the other components of capital and (iv) expand the scope of the deductions/adjustments as compared to existing regulations. The Basel III Capital Rules became effective for the Company on January 1, 2015 with certain transition provisions to be fully phased in by January 1, 2019. Starting in January 2016, the implementation of the capital conservation buffer became effective for the Company starting at the 0.625% level and increasing 0.625% each year thereafter, until it reaches 2.5% on January 1, 2019. The capital conservation buffer is designed to absorb losses during periods of economic stress and effectively increases the minimum required risk-weighted capital ratios. Failure to meet the full amount of the buffer will result in restrictions on the Company’s ability to make capital distributions, including dividend payments and stock repurchases, and to pay discretionary bonuses to executive officers. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total, CET1 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 June 30, 2017 and December 31, 2016 that the Company and the Bank met all capital adequacy requirements to which they were subject. As of June 30, 2017 and December 31, 2016 , the Company’s and 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 Company and the Bank must maintain minimum total risk-based, CET1, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table. There are no conditions or events since June 30, 2017 that management believes have changed the Company’s categorization as “well capitalized.” 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 Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio As of June 30, 2017 Total capital (to risk-weighted assets) Company $ 236,955 18.92 % $ 100,192 8.0 % n/a n/a Bank 139,381 11.14 % 100,094 8.0 % $ 125,118 10.0 % Tier 1 capital (to risk-weighted assets) Company 222,269 17.75 % 75,133 6.0 % n/a n/a Bank 129,642 10.36 % 75,082 6.0 % 100,110 8.0 Common equity tier 1 to risk-weighted assets Company 219,176 17.50 % 56,360 4.5 % n/a n/a Bank 129,642 10.36 % 56,312 4.5 % 81,339 6.5 Tier 1 capital (to average assets) Company 222,269 15.09 % 58,918 4.0 % n/a n/a Bank 129,642 8.81 % 58,861 4.0 % 73,577 5.0 As of December 31, 2016 Total capital (to risk-weighted assets) Company $ 228,566 22.02 % $ 83,039 8.0 % n/a n/a Bank 130,237 12.55 % 83,020 8.0 % $ 103,775 10.0 % Tier 1 capital (to risk-weighted assets) Company 215,057 20.72 % 62,275 6.0 % n/a n/a Bank 121,713 11.73 % 62,257 6.0 % 83,010 8.0 Common equity tier 1 to risk-weighted assets Company 211,964 20.42 % 46,711 4.5 % n/a n/a Bank 121,713 11.73 % 46,693 4.5 % 67,445 6.5 Tier 1 capital (to average assets) Company $ 215,057 16.82 % 51,143 4.0 % n/a n/a Bank 121,713 9.52 % 51,140 4.0 % 63,925 5.0 |
Business Combinations
Business Combinations | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations Pending Merger with Sovereign Bancshares, Inc. On December 14, 2016, the Company entered into a definitive agreement ("the merger agreement") with Dallas-based Sovereign Bancshares, Inc. ("Sovereign") and its wholly-owned subsidiary Sovereign Bank. The merger agreement provides for the merger of Spartan Merger Sub, Inc., a wholly owned subsidiary of the Company, with and into Sovereign. Following the merger, Sovereign will merge with and into the Company with the Company surviving and Sovereign Bank will merge with and into Veritex Community Bank with Veritex Community Bank surviving. As of June 30, 2017, Sovereign reported, on a consolidated basis, total assets of $1.0 billion and total deposits of $813.0 million . Upon the completion of the proposed merger with Sovereign, the Company expects to acquire Sovereign’s seven additional branches in the Dallas-Forth Worth metroplex, two branches in the Austin, Texas metropolitan area and one branch in the Houston, Texas metropolitan area. Under the terms of the merger agreement, the Company will issue 5,117,647 shares of its common stock and will pay approximately $58.0 million in cash for all of the shares of Sovereign’s common stock, subject to certain conditions and potential adjustments as described in the merger agreement. Additionally, under the terms of the merger agreement, each of Sovereign’s 24,500 shares of senior Non-Cumulative Perpetual Preferred Stock, Series C, no par value (“Sovereign SBLF Preferred Stock”) issued and outstanding immediately prior to the effective time shall be converted into one share of Senior Non-Cumulative Perpetual, Series D preferred stock of the Company (“Veritex Series D Preferred Stock”). Each share of the Veritex Series D Preferred Stock would provide the same rights, preferences, privileges and voting powers, and be subject to the same limitations and restrictions, as Sovereign SBLF Preferred Stock, taken as a whole, existing immediately prior to the consummation of the merger. In connection with consummation of the transaction, the merger agreement provides that two representatives of Sovereign’s board of directors will join the Company’s board of directors. The merger agreement contains customary representations, warranties and covenants by the Company and Sovereign. On April 6, 2017, the Company and Sovereign each held a special meeting of its shareholders where the Company’s shareholders approved the issuance of the shares of common stock and Sovereign’s shareholders approved the merger agreement. On July 7, 2017, the Company received the regulatory approval from the Board of Governors of the Federal Reserve System and the merger is expected to close on or about August 1, 2017, subject to the satisfaction or waiver of the customary closing conditions outlined in the merger agreement. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Veritex and the Bank as its wholly-owned subsidiary. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”), but do not include all of the information and footnotes required for complete financial statements. In management’s opinion, these interim unaudited condensed consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair statement of the Company’s condensed consolidated financial position at June 30, 2017 and December 31, 2016 , condensed consolidated results of operations for the three and six months ended June 30, 2017 and 2016 , condensed consolidated stockholders’ equity for the six months ended June 30, 2017 and 2016 and condensed consolidated cash flows for the six months ended June 30, 2017 and 2016 . Accounting measurements at interim dates inherently involve greater reliance on estimates than at year end and the results for the interim periods shown in this report are not necessarily indicative of results to be expected for the full year due in part to global economic and financial market conditions, interest rates, access to sources of liquidity, market competition and interruptions of business processes. These interim unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2016 included within the Company’s Form 10-K as filed with the Securities and Exchange Commission on March 10, 2017. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. These estimates and assumptions may also affect disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. |
Segment Reporting | Segment Reporting The Company has one reportable segment. All of the Company’s activities are interrelated, and each activity is dependent on the other and assessed based on how each of the activities of the Company supports the others. For example, lending is dependent upon the ability of the Company to fund itself with deposits and borrowings while managing interest rate and credit risk. Accordingly, all significant operating decisions are based upon analysis of the Company as one segment or unit. The Company’s chief operating decision-maker, the CEO, uses the consolidated results to make operating and strategic decisions. |
Reclassifications | Reclassifications Effective January 1, 2017, the Company adopted ASU 2016-09. Per ASU 2016-09 cash paid by an employer when directly withholding shares for tax-withholding purposes should be classified as a financing activity and for presentation purposes be applied retrospectively. For the six months ended June 30, 2016, the Company moved these costs from the accrued interest receivable and other assets line item in the cash flows from operating activities to the costs from issuance of stock related to stock-based awards line item on the cash flows from financing activities section on the cash flow statement. |
Earnings Per Share | Earnings Per Share Earnings per share (“EPS”) are based upon the weighted-average shares outstanding. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements ASU 2017-04 “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”) eliminates Step 2 from the goodwill impairment test. In addition, the amendment eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. For pubic companies, ASU 2017-04 is effective for fiscal years beginning after December 15, 2019 with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is in process of evaluating the impact of this pronouncement, which is not expected to have a significant impact on the consolidated financial statements. ASU 2016-18 “Statement of Cash Flows (Topic 230): Restricted Cash” (“ASU 2016-18”) requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. For public companies, ASU 2016-18 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company is in process of evaluating the impact of this pronouncement, which is not expected to have a significant impact on the consolidated financial statements. ASU 2016-13 “Financial Instruments —Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”) amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available for sale debt securities, credit losses should be measured in a manner similar to current GAAP, however Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. This Accounting Standards Update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. For public business entities, this ASU is effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods therein. The Company is continuing to evaluate the impact of the adoption of ASU 2016-03 and is uncertain of the impact on the consolidated financial statements at this point in time. ASU 2016-09 “Compensation —Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”) simplifies several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Per ASU 2016-09: (1) all excess tax benefits and tax deficiencies should be recognized as income tax expense or benefit in the income statement, rather than in additional paid-in capital under current guidance; (2) excess tax benefits should be classified along with other income tax cash flows as an operating activity on the statement of cash flows, rather than as a separate cash inflow from financing activities and cash outflow from operating activities under current guidance; (3) cash paid by an employer when directly withholding shares for tax-withholding purposes should be classified as a financing activity; and (4) an entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest, as under current guidance, or account for forfeitures when they occur. For public business entities, this ASU is effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods therein. Effective January 1, 2017, the Company adopted ASU 2016-09. For the three and six months ended June 30, 2017, the Company recognized an excess income tax benefit of $42 and $214 that reduced the income tax provision and increased net income on the condensed consolidated statements of income. The Company prospectively applied the guidance for the presentation of excess tax benefits as an operating cash flow and included the $214 excess income tax benefit as an operating activity on the condensed consolidated statement of cash flows for the six months ended June 30, 2017. In addition, the Company retrospectively applied the guidance for the presentation of the cash paid by an employer when directly withholding shares for tax-withholding purposes be classified as a financing activity on the condensed consolidated statement of cash flows for the six months ended June 30, 2017 and 2016. Finally, the Company elected to account for forfeitures as they occur. ASU 2016-02 “Leases (Topic 842)” (“ASU 2016-02”) is intended to improve the reporting of leasing transactions to provide users of financial statements with more decision-useful information. ASU 2016-02 will require organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is in process of evaluating the impact of this pronouncement, which is not expected to have a significant impact on the consolidated financial statements. ASU 2016-01 “Financial Instruments─Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”) amends certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (vii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale. This update will be effective for the Company on January 1, 2018. The Company is in process of evaluating the impact of this pronouncement, which 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. The original effective date for ASU 2014-09 was for annual and interim periods beginning after December 15, 2016. However, in August 2015, the FASB issued ASU 2015-14, which deferred the effective date by one year, therefore it is now effective for interim and annual reporting periods beginning after December 15, 2017. The Company will adopt the guidance in the first quarter of 2018 using the modified retrospective application with a cumulative-effect adjustment, if such adjustment is significant. While the guidance will replace most existing revenue recognition guidance in GAAP, the ASU is not applicable to financial instruments and, therefore, will not impact a majority of the Company’s revenue, including net interest income. Our implementation efforts to date include identification of revenue streams within the scope of the guidance, and we have begun evaluation of revenue contracts and related accounting policies. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Reconciliation Between Weighted Average Shares Used for Calculating Basic and Diluted EPS | The table below sets forth the reconciliation between weighted average shares used for calculating basic and diluted EPS for the three and six months ended June 30, 2017 and 2016 : Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Earnings (numerator) Net income $ 3,615 $ 3,173 $ 6,713 $ 5,986 Shares (denominator) Weighted average shares outstanding for basic EPS (thousands) 15,211 10,696 15,205 10,695 Dilutive effect of employee stock-based awards 426 298 428 283 Adjusted weighted average shares outstanding 15,637 10,994 15,633 10,978 Earnings per share: Basic $ 0.24 $ 0.30 $ 0.44 $ 0.56 Diluted $ 0.23 $ 0.29 $ 0.43 $ 0.55 |
Statement of Cash Flows (Tables
Statement of Cash Flows (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Other Supplemental Cash Flow Information | Other supplemental cash flow information is presented below: Six Months Ended June 30, 2017 2016 Supplemental Disclosures of Cash Flow Information: Cash paid for interest $ 3,745 $ 2,329 Cash paid for income taxes 3,500 4,650 Supplemental Disclosures of Non-Cash Flow Information: Net foreclosure of other real estate owned and repossessed assets $ — $ 114 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Carrying Amount and Approximate Fair Values of Available-for-Sale Securities | The carrying amount of securities and their approximate fair values are as follows: June 30, 2017 Amortized Gross Gross Fair Value Available for Sale U.S. government agencies $ 691 $ — $ 10 $ 681 Corporate securities 7,500 197 — $ 7,697 Municipal securities 14,914 42 126 14,830 Mortgage-backed securities 65,814 115 340 65,589 Collateralized mortgage obligations 45,370 158 316 45,212 Asset-backed securities 688 11 — 699 $ 134,977 $ 523 $ 792 $ 134,708 December 31, 2016 Amortized Gross Gross Fair Value Available for Sale U.S. government agencies $ 732 $ — $ 36 $ 696 Municipal securities 14,540 2 500 14,042 Mortgage-backed securities 49,907 83 871 49,119 Collateralized mortgage obligations 38,507 32 612 37,927 Asset-backed securities 764 11 — 775 $ 104,450 $ 128 $ 2,019 $ 102,559 |
Schedule of Investment Securities That Have Been in a Continuous Unrealized Loss Position | 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: June 30, 2017 Less Than 12 Months 12 Months or More Totals Fair Unrealized Fair Unrealized Fair Unrealized Available for Sale U.S. government agencies $ — $ — $ 681 $ 10 $ 681 $ 10 Municipal securities 7,052 107 1,346 19 8,398 126 Mortgage-backed securities 42,127 289 3,937 51 46,064 340 Collateralized mortgage obligations 28,283 293 1,473 23 29,756 316 $ 77,462 $ 689 $ 7,437 $ 103 $ 84,899 $ 792 December 31, 2016 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 $ — $ — $ 696 $ 36 $ 696 $ 36 Municipal securities 12,060 478 518 22 12,578 500 Mortgage-backed securities 37,274 802 6,848 69 44,122 871 Collateralized mortgage obligations 29,618 584 1,618 28 31,236 612 $ 78,952 $ 1,864 $ 9,680 $ 155 $ 88,632 $ 2,019 |
Schedule of Amortized Costs and Estimated Fair Values of Securities Available for Sale, By Contractual Maturity | The amortized costs and estimated fair values of securities available for sale, by contractual maturity, as of the dates indicated, are shown in the table 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. June 30, 2017 Available For Sale Amortized Fair Due in one year or less $ — $ — Due from one year to five years 3,928 3,952 Due from five years to ten years 4,504 4,435 Due after ten years 7,173 7,124 15,605 15,511 Corporate securities 7,500 7,697 Mortgage-backed securities 65,814 65,589 Collateralized mortgage obligations 45,370 45,212 Asset-backed securities 688 699 $ 134,977 $ 134,708 December 31, 2016 Available For Sale Amortized Fair Due in one year or less $ — $ — Due from one year to five years 4,009 3,974 Due from five years to ten years 3,522 3,346 Due after ten years 7,741 7,418 15,272 14,738 Mortgage-backed securities 49,907 49,119 Collateralized mortgage obligations 38,507 37,927 Asset-backed securities 764 775 $ 104,450 $ 102,559 |
Schedule of Proceeds From Sales of Investment Securities Available for Sale and Gross Gains and Losses | Proceeds from sales of investment securities available for sale and gross gains and losses for the six months ended June 30, 2017 and 2016 were as follows: Six Months Ended June 30, 2017 2016 Proceeds from sales $ — $ 8,378 Gross realized gains — 43 Gross realized losses — 40 |
Loans and Allowance for Loan 26
Loans and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Summary of Loans in the Accompanying Consolidated Balance Sheets | Loans in the accompanying condensed consolidated balance sheets are summarized as follows: June 30, December 31, Real estate: Construction and land $ 136,332 $ 162,614 Farmland 8,448 8,262 1 - 4 family residential 157,823 140,137 Multi-family residential 38,265 14,683 Commercial Real Estate 430,895 370,696 Commercial 347,017 291,416 Consumer 3,688 4,089 1,122,468 991,897 Deferred loan fees (40 ) (55 ) Allowance for loan losses (9,740 ) (8,524 ) $ 1,112,688 $ 983,318 |
Schedule of Non-Accrual Loans | Non-accrual loans aggregated by class of loans, as of June 30, 2017 and December 31, 2016 , are as follows: June 30, December 31, Real estate: Construction and land $ — $ — Farmland — — 1 - 4 family residential — — Multi-family residential — — Commercial Real Estate 727 — Commercial 778 930 Consumer 9 11 $ 1,514 $ 941 |
Schedule of Age Analysis of Past Due Loans, Aggregated by Class of Loans | An aging analysis of past due loans, aggregated by class of loans, as of June 30, 2017 and December 31, 2016 is as follows: June 30, 2017 30 to 59 Days 60 to 89 Days 90 Days or Greater Total Past Due Total Current Total Total 90 Days Past Due and Still Accruing Real estate: Construction and land $ 492 $ — $ — $ 492 $ 135,840 $ 136,332 $ — Farmland — — — — 8,448 8,448 — 1 - 4 family residential 815 — — 815 157,008 157,823 — Multi-family residential — — — — 38,265 38,265 — Commercial Real Estate — — 727 727 430,168 430,895 — Commercial 137 392 781 1,310 345,707 347,017 15 Consumer 9 — — 9 3,679 3,688 — $ 1,453 $ 392 $ 1,508 $ 3,353 $ 1,119,115 $ 1,122,468 $ 15 December 31, 2016 30 to 59 Days 60 to 89 Days 90 Days or Greater Total Past Due Total Current Total Total 90 Days Past Due and Still Accruing Real estate: Construction and land $ 1,047 $ — $ — $ 1,047 $ 161,567 $ 162,614 $ — Farmland — — — — 8,262 8,262 — 1 - 4 family residential 510 214 — 724 139,413 140,137 — Multi-family residential — — — — 14,683 14,683 — Commercial Real Estate — — 754 754 369,942 370,696 754 Commercial 1,344 438 532 2,314 289,102 291,416 81 Consumer 41 — — 41 4,048 4,089 — $ 2,942 $ 652 $ 1,286 $ 4,880 $ 987,017 $ 991,897 $ 835 |
Summary of Impaired Loans, Including Purchased Credit Impaired Loans and TDRs | Impaired loans, including purchased credit impaired (“PCI”) loans and TDRs, at June 30, 2017 and December 31, 2016 are summarized in the following tables. June 30, 2017 Unpaid Recorded Recorded Total Related Average Real estate: Construction and land $ — $ — $ — $ — $ — $ — Farmland — — — — — — 1 - 4 family residential 163 163 — 163 — 212 Multi-family residential — — — — — — Commercial Real Estate 1,104 1,104 — 1,104 — 1,140 Commercial 793 540 253 793 137 886 Consumer 86 77 9 86 1 89 Total $ 2,146 $ 1,884 $ 262 $ 2,146 $ 138 $ 2,327 December 31, 2016 Unpaid Recorded Recorded Total Related Average Real estate: Construction and land $ — $ — $ — $ — $ — $ — Farmland — — — — — — 1 - 4 family residential 164 164 — 164 — 265 Multi-family residential — — — — — — Commercial Real Estate 382 382 — 382 — 440 Commercial 955 381 574 955 246 463 Consumer 92 81 11 92 4 12 Total $ 1,593 $ 1,008 $ 585 $ 1,593 $ 250 $ 1,180 |
Summary of Internal Ratings of Loans, Including Purchased Credit Impaired Loans | The following tables summarize the Company’s internal ratings of its loans, including purchased credit impaired loans, as of June 30, 2017 and December 31, 2016 : June 30, 2017 Pass Special Substandard Doubtful Total Real estate: Construction and land $ 136,332 $ — $ — $ — $ 136,332 Farmland 8,448 — — — 8,448 1 - 4 family residential 157,564 — 259 — 157,823 Multi-family residential 38,265 — — — 38,265 Commercial Real Estate 424,247 5,358 1,290 — 430,895 Commercial 338,701 6,990 1,210 116 347,017 Consumer 3,672 — 16 — 3,688 Total $ 1,107,229 $ 12,348 $ 2,775 $ 116 $ 1,122,468 December 31, 2016 Pass Special Substandard Doubtful Total Real estate: Construction and land $ 162,614 $ — $ — $ — $ 162,614 Farmland 8,262 — — — 8,262 1 - 4 family residential 139,212 710 215 — 140,137 Multi-family residential 14,683 — — — 14,683 Commercial Real Estate 368,370 2,326 — — 370,696 Commercial 289,589 686 1,034 107 291,416 Consumer 4,078 — 11 — 4,089 Total $ 986,808 $ 3,722 $ 1,260 $ 107 $ 991,897 |
Schedule of Analysis of the Allowance for Loan Losses | An analysis of the allowance for loan losses for the six months ended June 30, 2017 and 2016 and year ended December 31, 2016 is as follows: Six Months Ended June 30, 2017 Year Ended December 31, 2016 Six Months Ended June 30, 2016 Balance at beginning of year $ 8,524 $ 6,772 $ 6,772 Provision charged to earnings 1,833 2,050 1,372 Charge-offs (622 ) (333 ) (249 ) Recoveries 5 35 15 Net charge-offs (617 ) (298 ) (234 ) Balance at end of year $ 9,740 $ 8,524 $ 7,910 |
Summary of Activity in the Allowance for Loan Losses by Class of Loans | The following tables summarize the activity in the allowance for loan losses by portfolio segment for the periods indicated: For the Six Months Ended June 30, 2017 Real Estate Construction, Residential Commercial Real Estate Commercial Consumer Total Balance at beginning of period $ 1,415 $ 1,116 $ 3,003 $ 2,955 $ 35 $ 8,524 Provision (recapture) charged to earnings (291 ) 370 554 1,205 (5 ) 1,833 Charge-offs — (11 ) — (611 ) — (622 ) Recoveries — — — 5 — 5 Net charge-offs (recoveries) — (11 ) — (606 ) — (617 ) Balance at end of period $ 1,124 $ 1,475 $ 3,557 $ 3,554 $ 30 $ 9,740 Period-end amount allocated to: Specific reserves: Impaired loans $ — $ — $ — $ 137 $ 1 $ 138 Total specific reserves — — — 137 1 138 General reserves 1,124 1,475 3,557 3,417 29 9,602 Total $ 1,124 $ 1,475 $ 3,557 $ 3,554 $ 30 $ 9,740 For the Year Ended December 31, 2016 Real Estate Construction, Residential Commercial Real Estate Commercial Consumer Total Balance at beginning of period $ 1,104 $ 1,124 $ 2,189 $ 2,324 $ 31 $ 6,772 Provision (recapture) charged to earnings 311 (8 ) 814 913 20 2,050 Charge-offs — — — (314 ) (19 ) (333 ) Recoveries — — — 32 3 35 Net charge-offs (recoveries) — — — (282 ) (16 ) (298 ) Balance at end of period $ 1,415 $ 1,116 $ 3,003 $ 2,955 $ 35 $ 8,524 Period-end amount allocated to: Specific reserves: Impaired loans $ — $ — $ — $ 246 $ 4 $ 250 Total specific reserves — — — 246 4 250 General reserves 1,415 1,116 3,003 2,709 31 8,274 Total $ 1,415 $ 1,116 $ 3,003 $ 2,955 $ 35 $ 8,524 For the Six Months Ended June 30, 2016 Real Estate Construction, Residential Commercial Real Estate Commercial Consumer Total Balance at beginning of year $ 1,104 $ 1,124 $ 2,189 $ 2,324 $ 31 $ 6,772 Provision (recapture) charged to earnings 286 67 397 618 4 1,372 Charge-offs — — — (240 ) (9 ) (249 ) Recoveries — — — 14 1 15 Net charge-offs (recoveries) — — — (226 ) (8 ) (234 ) Balance at end of year $ 1,390 $ 1,191 $ 2,586 $ 2,716 $ 27 $ 7,910 Period-end amount allocated to: Specific reserves: Impaired loans $ — $ — $ — $ 80 $ 4 $ 84 Total specific reserves — — — 80 4 84 General reserves 1,390 1,191 2,586 2,636 23 7,826 Total $ 1,390 $ 1,191 $ 2,586 $ 2,716 $ 27 $ 7,910 |
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 | The Company’s recorded investment in loans as of June 30, 2017 and December 31, 2016 related to the balance in the allowance for loan losses on the basis of the Company’s impairment methodology is as follows: June 30, 2017 Real Estate Construction, Residential Commercial Real Estate Commercial Consumer Total Loans individually evaluated for impairment $ — $ 163 $ 1,104 $ 793 $ 86 $ 2,146 Loans collectively evaluated for impairment 144,780 195,925 429,791 346,224 3,602 1,120,322 Total $ 144,780 $ 196,088 $ 430,895 $ 347,017 $ 3,688 $ 1,122,468 December 31, 2016 Real Estate Construction, Residential Commercial Real Estate Commercial Consumer Total Loans individually evaluated for impairment $ — $ 164 $ 382 $ 955 $ 92 $ 1,593 Loans collectively evaluated for impairment 170,876 154,656 370,314 290,461 3,997 990,304 Total $ 170,876 $ 154,820 $ 370,696 $ 291,416 $ 4,089 $ 991,897 |
Schedule of Summary of Changes in Servicing Assets | At June 30, 2017 , the Company was servicing loans of approximately $44,720 . A summary of the changes in the related servicing assets are as follows: Six Months Ended June 30, 2017 2016 Balance at beginning of year $ 601 $ 426 Increase from loan sales 281 111 Amortization charged to income (88 ) (55 ) Balance at end of period $ 794 $ 482 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value on a Recurring Basis | The following table summarizes assets measured at fair value on a recurring basis as of June 30, 2017 and December 31, 2016 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Fair Value Level 1 Level 2 Level 3 Total As of June 30, 2017 Investment securities available for sale $ — $ 134,708 $ — $ 134,708 As of December 31, 2016 Investment securities available for sale $ — $ 102,559 $ — $ 102,559 |
Schedule of Assets Measured at Fair Value on a Non-Recurring Basis | The following table summarizes assets measured at fair value on a non-recurring basis as of June 30, 2017 and December 31, 2016 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Fair Value Level 1 Level 2 Level 3 Total As of June 30, 2017 Assets: Impaired loans $ — $ — $ 2,008 $ 2,008 As of December 31, 2016 Assets: Impaired loans $ — $ — $ 1,343 $ 1,343 |
Schedule of Significant Unobservable Inputs Used in the Fair Value Measurements | For Level 3 financial assets measured at fair value as of June 30, 2017 and December 31, 2016 , the significant unobservable inputs used in the fair value measurements were as follows: June 30, 2017 Valuation Unobservable Weighted Assets/Liabilities Fair Value Technique Input(s) Average Impaired loans $ 2,008 Collateral Method Adjustments for selling costs 8 % December 31, 2016 Valuation Unobservable Weighted Assets/Liabilities Fair Value Technique Input(s) Average Impaired loans $ 1,343 Collateral Method Adjustments for selling costs 8 % |
Schedule of Estimated Fair Values and Carrying Values of All Financial Instruments | The estimated fair values and carrying values of all financial instruments under current authoritative guidance as of June 30, 2017 and December 31, 2016 were as follows: June 30, December 31, 2017 2016 Carrying Fair Carrying Fair Financial assets: Level 1 inputs: Cash and cash equivalents $ 173,146 $ 173,146 $ 234,791 $ 234,791 Level 2 inputs: Investment securities 134,708 134,708 102,559 102,559 Loans held for sale 4,118 4,118 5,208 5,208 Accrued interest receivable 3,333 3,333 2,907 2,907 Bank-owned life insurance 20,369 20,369 20,077 20,077 Servicing asset 794 794 601 601 Non-marketable equity securities 7,407 7,407 7,366 7,366 Level 3 inputs: Loans, net 1,112,688 1,120,692 983,318 987,021 Financial liabilities: Level 2 inputs: Deposits $ 1,211,107 $ 1,158,631 $ 1,119,630 $ 1,085,888 Advances from FHLB 38,235 38,280 38,306 38,570 Accrued interest payable 125 125 141 141 Junior subordinated debentures 3,093 3,093 3,093 3,093 Subordinated notes 4,946 4,946 4,942 4,942 |
Financial Instruments with Of28
Financial Instruments with Off-Balance Sheet Risk (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of the Approximate Amounts of Financial Instruments with Off-Balance Sheet Risk | The following table sets forth the approximate amounts of these financial instruments as of June 30, 2017 and December 31, 2016 : June 30, December 31, 2017 2016 Commitments to extend credit $ 269,863 $ 236,919 Standby and commercial letters of credit 5,936 6,933 $ 275,799 $ 243,852 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Summary of ESOP Shares | The following is a summary of ESOP shares as of June 30, 2017 and December 31, 2016 : June 30, December 31, 2017 2016 Allocated shares 44,257 44,257 Unearned shares 18,783 18,783 Total ESOP shares 63,040 63,040 Fair value of unearned shares $ 495 $ 502 |
Stock and Incentive Plan (Table
Stock and Incentive Plan (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
2010 Stock Option and Equity Incentive Plan | |
Stock and Incentive Plans | |
Summary of Option Activity | A summary of option activity under the 2010 Incentive Plan for the six months ended June 30, 2017 and 2016 , and changes during the period then ended is presented below: For the Six Months Ended June 30, 2017 Non-performance-based Stock Options Shares Underlying Options Weighted Exercise Price Weighted Average Contractual Term Outstanding at beginning of year 325,500 $ 10.15 4.56 years Granted during the period — — Forfeited during the period — — Canceled during the period — — Exercised during the period (15,000 ) 10.00 Outstanding at the end of period 310,500 $ 10.16 4.09 years Options exercisable at end of period 297,000 $ 10.12 4.00 years Weighted average fair value of options granted during the period $ — For the Six Months Ended June 30, 2016 Non-performance-based Stock Options Shares Underlying Options Weighted Exercise Price Weighted Average Contractual Term Outstanding at beginning of year 325,500 $ 10.15 5.56 years Granted during the period — — Forfeited during the period — — Exercised during the period — — Outstanding at the end of period 325,500 $ 10.15 5.06 years Options exercisable at end of period 298,200 $ 10.09 4.91 years Weighted average fair value of options granted during the period $ — |
Summary of Status of the Company's Restricted Shares or Restricted Stock Units | A summary of the status of the Company’s restricted stock units under the 2010 Incentive Plan as of June 30, 2017 and 2016 , and changes during the six months then ended is as follows: 2017 2016 Shares Weighted Average Grant Date Fair Value Shares Weighted Nonvested at January 1, 27,750 $ 11.92 39,750 $ 11.34 Granted during the period — — — — Vested during the period (1,000 ) 10.85 (6,000 ) 10.00 Forfeited during the period (500 ) 10.85 — — Nonvested at June 30, 26,250 $ 11.98 33,750 $ 11.58 |
Omnibus Plan | |
Stock and Incentive Plans | |
Summary of Option Activity | A summary of the status of the Company’s stock options under the 2014 Omnibus Plan as of June 30, 2017 and 2016 , and changes during the six months ended is as follows: 2017 2016 Non-performance-based Stock Options Non-performance-based Stock Options Shares Weighted Weighted Shares Weighted Weighted Outstanding at beginning of year 128,366 $ 15.32 8.69 years 52,080 $ 14.35 9.12 years Granted during the period 65,440 26.89 71,286 15.88 Forfeited during the period (3,465 ) 21.24 — — Canceled during the period — — — — Exercised during the period (1,544 ) 15.00 — — Outstanding at the end of period 188,797 $ 19.22 8.63 years 123,366 $ 15.23 9.16 years Options exercisable at end of period 51,204 $ 14.96 7.93 years 14,693 $ 14.17 8.51 years Weighted average fair value of options granted during the period $ 10.22 $ 6.09 |
Summary of Status of the Company's Restricted Shares or Restricted Stock Units | A summary of the status of the Company’s non-performance based restricted stock units under the 2014 Omnibus Plan as of June 30, 2017 and 2016 , and changes during the six months ended is as follows: 2017 2016 Non-performance Based Non-performance Based Restricted Stock Units Restricted Stock Units Units Weighted Average Grant Date Fair Value Units Weighted Nonvested at January 1, 67,956 $ 13.79 70,919 $ 13.29 Granted during the period 31,375 27.49 22,060 15.63 Vested during the period (8,475 ) 25.42 (5,476 ) 16.07 Forfeited during the period (2,250 ) 27.93 — — Nonvested at June 30, 88,606 $ 17.17 87,503 $ 13.70 A summary of the status of the Company’s performance based restricted stock units under the 2014 Omnibus Plan as of June 30, 2017 and 2016 , and changes during the six months ended is as follows: 2017 2016 Performance Based Performance Based Restricted Stock Units Restricted Stock Units Units Weighted Average Grant Date Fair Value Units Weighted Nonvested at January 1, 51,197 $ 8.72 25,474 $ 9.45 Granted during the period 25,522 24.34 34,190 9.52 Vested during the period (19,861 ) 15.34 (8,467 ) 14.17 Forfeited during the period (2,014 ) 15.68 — — Nonvested at June 30, 54,844 $ 13.33 51,197 $ 8.72 |
Schedule of Assumptions Used to Measure Fair Value of Each Option Award Estimated On Grant Date Using Black-Scholes Option-Pricing Model | 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: For the Six Months Ended June 30, 2017 2016 Dividend yield 0.00% 0.00% Expected life 5.0 to 7.5 years 5.0 to 6.5 years Expected volatility 32.10% to 37.55% 35.23% to 37.55% Risk-free interest rate 1.06% to 2.32% 1.26% to 2.01% |
Capital Requirements and Rest31
Capital Requirements and Restrictions on Retained Earnings (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Banking and Thrift [Abstract] | |
Schedule of Comparison of the Company's and Bank's Actual Capital Amounts and Ratios to Required Capital Amounts and Ratios | 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 Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio As of June 30, 2017 Total capital (to risk-weighted assets) Company $ 236,955 18.92 % $ 100,192 8.0 % n/a n/a Bank 139,381 11.14 % 100,094 8.0 % $ 125,118 10.0 % Tier 1 capital (to risk-weighted assets) Company 222,269 17.75 % 75,133 6.0 % n/a n/a Bank 129,642 10.36 % 75,082 6.0 % 100,110 8.0 Common equity tier 1 to risk-weighted assets Company 219,176 17.50 % 56,360 4.5 % n/a n/a Bank 129,642 10.36 % 56,312 4.5 % 81,339 6.5 Tier 1 capital (to average assets) Company 222,269 15.09 % 58,918 4.0 % n/a n/a Bank 129,642 8.81 % 58,861 4.0 % 73,577 5.0 As of December 31, 2016 Total capital (to risk-weighted assets) Company $ 228,566 22.02 % $ 83,039 8.0 % n/a n/a Bank 130,237 12.55 % 83,020 8.0 % $ 103,775 10.0 % Tier 1 capital (to risk-weighted assets) Company 215,057 20.72 % 62,275 6.0 % n/a n/a Bank 121,713 11.73 % 62,257 6.0 % 83,010 8.0 Common equity tier 1 to risk-weighted assets Company 211,964 20.42 % 46,711 4.5 % n/a n/a Bank 121,713 11.73 % 46,693 4.5 % 67,445 6.5 Tier 1 capital (to average assets) Company $ 215,057 16.82 % 51,143 4.0 % n/a n/a Bank 121,713 9.52 % 51,140 4.0 % 63,925 5.0 |
Summary of Significant Accoun32
Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2017USD ($) | Jun. 30, 2017USD ($)segmentmortgage_officebranch | Jun. 30, 2016USD ($) | |
Nature of Organization: | |||
Number of branches | branch | 11 | ||
Number of mortgage offices | mortgage_office | 1 | ||
Segment Reporting: | |||
Number of reportable segment | segment | 1 | ||
Excess tax benefit realized on share-based payment awards | $ 42 | $ 214 | |
Excess tax benefit from stock compensation | $ 214 | $ 0 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings (numerator) | ||||
Net income | $ 3,615 | $ 3,173 | $ 6,713 | $ 5,986 |
Shares (denominator) | ||||
Weighted average shares outstanding for basic EPS (thousands) (in shares) | 15,211 | 10,696 | 15,205 | 10,695 |
Dilutive effect of employee stock based awards (in shares) | 426 | 298 | 428 | 283 |
Adjusted weighted average shares outstanding (in shares) | 15,637 | 10,994 | 15,633 | 10,978 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.24 | $ 0.30 | $ 0.44 | $ 0.56 |
Diluted (in dollars per share) | $ 0.23 | $ 0.29 | $ 0.43 | $ 0.55 |
Summary of Significant Accoun34
Summary of Significant Accounting Policies - Antidilutive Securities (Details) - shares | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Performance-based stock options | ||
Earnings Per Share | ||
Excluded from diluted EPS weighted average shares | 0 | 117,624 |
Statement of Cash Flows - Other
Statement of Cash Flows - Other Supplemental Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Supplemental Disclosures of Cash Flow Information: | ||
Cash paid for interest | $ 3,745 | $ 2,329 |
Cash paid for income taxes | 3,500 | 4,650 |
Supplemental Disclosures of Non-Cash Flow Information: | ||
Net foreclosure of other real estate owned and repossessed assets | $ 0 | $ 114 |
Investment Securities - Carryin
Investment Securities - Carrying Amount and Fair Values (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Available for Sale securities | ||
Amortized Cost | $ 134,977 | $ 104,450 |
Gross Unrealized Gains | 523 | 128 |
Gross Unrealized Losses | 792 | 2,019 |
Fair Value | 134,708 | 102,559 |
U.S. government agencies | ||
Available for Sale securities | ||
Amortized Cost | 691 | 732 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 10 | 36 |
Fair Value | 681 | 696 |
Corporate securities | ||
Available for Sale securities | ||
Amortized Cost | 7,500 | |
Gross Unrealized Gains | 197 | |
Gross Unrealized Losses | 0 | |
Fair Value | 7,697 | |
Municipal securities | ||
Available for Sale securities | ||
Amortized Cost | 14,914 | 14,540 |
Gross Unrealized Gains | 42 | 2 |
Gross Unrealized Losses | 126 | 500 |
Fair Value | 14,830 | 14,042 |
Mortgage-backed securities | ||
Available for Sale securities | ||
Amortized Cost | 65,814 | 49,907 |
Gross Unrealized Gains | 115 | 83 |
Gross Unrealized Losses | 340 | 871 |
Fair Value | 65,589 | 49,119 |
Collateralized mortgage obligations | ||
Available for Sale securities | ||
Amortized Cost | 45,370 | 38,507 |
Gross Unrealized Gains | 158 | 32 |
Gross Unrealized Losses | 316 | 612 |
Fair Value | 45,212 | 37,927 |
Asset-backed securities | ||
Available for Sale securities | ||
Amortized Cost | 688 | 764 |
Gross Unrealized Gains | 11 | 11 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 699 | $ 775 |
Investment Securities - Unreali
Investment Securities - Unrealized Loss Position (Details) $ in Thousands | Jun. 30, 2017USD ($)investment | Dec. 31, 2016USD ($)investment |
Fair Value | ||
Less Than 12 Months, Fair Value | $ 77,462 | $ 78,952 |
12 Months or More, Fair Value | 7,437 | 9,680 |
Total Fair Value | 84,899 | 88,632 |
Unrealized Loss | ||
Less Than 12 Months, Unrealized Loss | 689 | 1,864 |
12 Months or More, Unrealized Loss | 103 | 155 |
Total Unrealized Loss | $ 792 | $ 2,019 |
Number of investment positions in an unrealized loss position | investment | 64 | 72 |
U.S. government agencies | ||
Fair Value | ||
Less Than 12 Months, Fair Value | $ 0 | $ 0 |
12 Months or More, Fair Value | 681 | 696 |
Total Fair Value | 681 | 696 |
Unrealized Loss | ||
Less Than 12 Months, Unrealized Loss | 0 | 0 |
12 Months or More, Unrealized Loss | 10 | 36 |
Total Unrealized Loss | 10 | 36 |
Municipal securities | ||
Fair Value | ||
Less Than 12 Months, Fair Value | 7,052 | 12,060 |
12 Months or More, Fair Value | 1,346 | 518 |
Total Fair Value | 8,398 | 12,578 |
Unrealized Loss | ||
Less Than 12 Months, Unrealized Loss | 107 | 478 |
12 Months or More, Unrealized Loss | 19 | 22 |
Total Unrealized Loss | 126 | 500 |
Mortgage-backed securities | ||
Fair Value | ||
Less Than 12 Months, Fair Value | 42,127 | 37,274 |
12 Months or More, Fair Value | 3,937 | 6,848 |
Total Fair Value | 46,064 | 44,122 |
Unrealized Loss | ||
Less Than 12 Months, Unrealized Loss | 289 | 802 |
12 Months or More, Unrealized Loss | 51 | 69 |
Total Unrealized Loss | 340 | 871 |
Collateralized mortgage obligations | ||
Fair Value | ||
Less Than 12 Months, Fair Value | 28,283 | 29,618 |
12 Months or More, Fair Value | 1,473 | 1,618 |
Total Fair Value | 29,756 | 31,236 |
Unrealized Loss | ||
Less Than 12 Months, Unrealized Loss | 293 | 584 |
12 Months or More, Unrealized Loss | 23 | 28 |
Total Unrealized Loss | $ 316 | $ 612 |
Investment Securities - Maturit
Investment Securities - Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Amortized Cost | ||
Due in one year or less | $ 0 | $ 0 |
Due from one year to five years | 3,928 | 4,009 |
Due from five years to ten years | 4,504 | 3,522 |
Due after ten years | 7,173 | 7,741 |
Total investment securities available for sale, single maturity date | 15,605 | 15,272 |
Total investment securities available for sale, amortized cost basis | 134,977 | 104,450 |
Fair Value | ||
Due in one year or less | 0 | 0 |
Due from one year to five years | 3,952 | 3,974 |
Due from five years to ten years | 4,435 | 3,346 |
Due after ten years | 7,124 | 7,418 |
Total investment securities available for sale | 15,511 | 14,738 |
Total investment securities available for sale, fair value | 134,708 | 102,559 |
Corporate securities | ||
Amortized Cost | ||
Amortized cost | 7,500 | |
Fair Value | ||
Fair value | 7,697 | |
Mortgage-backed securities | ||
Amortized Cost | ||
Amortized cost | 65,814 | 49,907 |
Fair Value | ||
Fair value | 65,589 | 49,119 |
Collateralized mortgage obligations | ||
Amortized Cost | ||
Amortized cost | 45,370 | 38,507 |
Fair Value | ||
Fair value | 45,212 | 37,927 |
Asset-backed securities | ||
Amortized Cost | ||
Amortized cost | 688 | 764 |
Fair Value | ||
Fair value | $ 699 | $ 775 |
Investment Securities - Proceed
Investment Securities - Proceeds and Gross Gains/Losses (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Proceeds from sales of investment securities available for sale and gross gains and losses | ||
Proceeds from sales | $ 0 | $ 8,378,000 |
Gross realized gains | 0 | 43,000 |
Gross realized losses | 0 | 40,000 |
Calls of investment securities | ||
Proceeds from sales of investment securities available for sale and gross gains and losses | ||
Gross realized gains (losses) | $ 0 | $ 12,000 |
Loans and Allowance for Loan 40
Loans and Allowance for Loan Losses - Balance Sheet Summary (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Loans and Allowance for Loan Losses | ||||
Loans, gross | $ 1,122,468 | $ 991,897 | ||
Deferred loan fees | (40) | (55) | ||
Allowance for loan losses | (9,740) | (8,524) | $ (7,910) | $ (6,772) |
Loans, net | 1,112,688 | 983,318 | ||
Accretable discount related to loans acquired within a business combination | 376 | 566 | ||
Commercial | ||||
Loans and Allowance for Loan Losses | ||||
Loans, gross | 347,017 | 291,416 | ||
Allowance for loan losses | (3,554) | (2,955) | (2,716) | (2,324) |
Consumer | ||||
Loans and Allowance for Loan Losses | ||||
Loans, gross | 3,688 | 4,089 | ||
Allowance for loan losses | (30) | (35) | (27) | (31) |
Construction and land | Real estate | ||||
Loans and Allowance for Loan Losses | ||||
Loans, gross | 136,332 | 162,614 | ||
Farmland | Real estate | ||||
Loans and Allowance for Loan Losses | ||||
Loans, gross | 8,448 | 8,262 | ||
Real estate | Real estate | ||||
Loans and Allowance for Loan Losses | ||||
Loans, gross | 196,088 | 154,820 | ||
Allowance for loan losses | (1,475) | (1,116) | (1,191) | (1,124) |
Commercial Real Estate | Real estate | ||||
Loans and Allowance for Loan Losses | ||||
Loans, gross | 430,895 | 370,696 | ||
Allowance for loan losses | (3,557) | (3,003) | $ (2,586) | $ (2,189) |
1 - 4 family residential | Real estate | Real estate | ||||
Loans and Allowance for Loan Losses | ||||
Loans, gross | 157,823 | 140,137 | ||
Multi-family residential | Real estate | Real estate | ||||
Loans and Allowance for Loan Losses | ||||
Loans, gross | $ 38,265 | $ 14,683 |
Loans and Allowance for Loan 41
Loans and Allowance for Loan Losses - Nonaccrual (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Loans and Allowance for Loan Losses | ||
Non-accrual loans | $ 1,514 | $ 941 |
Commercial | ||
Loans and Allowance for Loan Losses | ||
Non-accrual loans | 778 | 930 |
Consumer | ||
Loans and Allowance for Loan Losses | ||
Non-accrual loans | 9 | 11 |
Construction and land | Real estate | ||
Loans and Allowance for Loan Losses | ||
Non-accrual loans | 0 | 0 |
Farmland | Real estate | ||
Loans and Allowance for Loan Losses | ||
Non-accrual loans | 0 | 0 |
Real estate | 1 - 4 family residential | Real estate | ||
Loans and Allowance for Loan Losses | ||
Non-accrual loans | 0 | 0 |
Real estate | Multi-family residential | Real estate | ||
Loans and Allowance for Loan Losses | ||
Non-accrual loans | 0 | 0 |
Commercial Real Estate | Real estate | ||
Loans and Allowance for Loan Losses | ||
Non-accrual loans | $ 727 | $ 0 |
Loans and Allowance for Loan 42
Loans and Allowance for Loan Losses - Past Due (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | $ 3,353 | $ 4,880 |
Total Current | 1,119,115 | 987,017 |
Total Loans | 1,122,468 | 991,897 |
Total 90 Days Past Due and Still Accruing | 15 | 835 |
30 to 59 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 1,453 | 2,942 |
60 to 89 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 392 | 652 |
90 Days or Greater | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 1,508 | 1,286 |
Commercial | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 1,310 | 2,314 |
Total Current | 345,707 | 289,102 |
Total Loans | 347,017 | 291,416 |
Total 90 Days Past Due and Still Accruing | 15 | 81 |
Commercial | 30 to 59 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 137 | 1,344 |
Commercial | 60 to 89 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 392 | 438 |
Commercial | 90 Days or Greater | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 781 | 532 |
Consumer | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 9 | 41 |
Total Current | 3,679 | 4,048 |
Total Loans | 3,688 | 4,089 |
Total 90 Days Past Due and Still Accruing | 0 | 0 |
Consumer | 30 to 59 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 9 | 41 |
Consumer | 60 to 89 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | 0 |
Consumer | 90 Days or Greater | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | 0 |
Construction and land | Real estate | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 492 | 1,047 |
Total Current | 135,840 | 161,567 |
Total Loans | 136,332 | 162,614 |
Total 90 Days Past Due and Still Accruing | 0 | 0 |
Construction and land | Real estate | 30 to 59 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 492 | 1,047 |
Construction and land | Real estate | 60 to 89 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | 0 |
Construction and land | Real estate | 90 Days or Greater | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | 0 |
Farmland | Real estate | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | 0 |
Total Current | 8,448 | 8,262 |
Total Loans | 8,448 | 8,262 |
Total 90 Days Past Due and Still Accruing | 0 | 0 |
Farmland | Real estate | 30 to 59 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | 0 |
Farmland | Real estate | 60 to 89 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | 0 |
Farmland | Real estate | 90 Days or Greater | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | 0 |
Real estate | Real estate | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Loans | 196,088 | 154,820 |
Commercial Real Estate | Real estate | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 727 | 754 |
Total Current | 430,168 | 369,942 |
Total Loans | 430,895 | 370,696 |
Total 90 Days Past Due and Still Accruing | 0 | 754 |
Commercial Real Estate | Real estate | 30 to 59 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | 0 |
Commercial Real Estate | Real estate | 60 to 89 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | 0 |
Commercial Real Estate | Real estate | 90 Days or Greater | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 727 | 754 |
1 - 4 family residential | Real estate | Real estate | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 815 | 724 |
Total Current | 157,008 | 139,413 |
Total Loans | 157,823 | 140,137 |
Total 90 Days Past Due and Still Accruing | 0 | 0 |
1 - 4 family residential | Real estate | Real estate | 30 to 59 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 815 | 510 |
1 - 4 family residential | Real estate | Real estate | 60 to 89 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | 214 |
1 - 4 family residential | Real estate | Real estate | 90 Days or Greater | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | 0 |
Multi-family residential | Real estate | Real estate | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | 0 |
Total Current | 38,265 | 14,683 |
Total Loans | 38,265 | 14,683 |
Total 90 Days Past Due and Still Accruing | 0 | 0 |
Multi-family residential | Real estate | Real estate | 30 to 59 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | 0 |
Multi-family residential | Real estate | Real estate | 60 to 89 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | 0 |
Multi-family residential | Real estate | Real estate | 90 Days or Greater | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | $ 0 | $ 0 |
Loans and Allowance for Loan 43
Loans and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Impaired Loans | ||
Unpaid Contractual Principal Balance | $ 2,146 | $ 1,593 |
Recorded Investment with No Allowance | 1,884 | 1,008 |
Recorded Investment With Allowance | 262 | 585 |
Total Recorded Investment | 2,146 | 1,593 |
Related Allowance | 138 | 250 |
Average Recorded Investment YTD | 2,327 | 1,180 |
Commercial | ||
Impaired Loans | ||
Unpaid Contractual Principal Balance | 793 | 955 |
Recorded Investment with No Allowance | 540 | 381 |
Recorded Investment With Allowance | 253 | 574 |
Total Recorded Investment | 793 | 955 |
Related Allowance | 137 | 246 |
Average Recorded Investment YTD | 886 | 463 |
Consumer | ||
Impaired Loans | ||
Unpaid Contractual Principal Balance | 86 | 92 |
Recorded Investment with No Allowance | 77 | 81 |
Recorded Investment With Allowance | 9 | 11 |
Total Recorded Investment | 86 | 92 |
Related Allowance | 1 | 4 |
Average Recorded Investment YTD | 89 | 12 |
Construction and land | Real estate | ||
Impaired Loans | ||
Unpaid Contractual Principal Balance | 0 | 0 |
Recorded Investment with No Allowance | 0 | 0 |
Recorded Investment With Allowance | 0 | 0 |
Total Recorded Investment | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment YTD | 0 | 0 |
Farmland | Real estate | ||
Impaired Loans | ||
Unpaid Contractual Principal Balance | 0 | 0 |
Recorded Investment with No Allowance | 0 | 0 |
Recorded Investment With Allowance | 0 | 0 |
Total Recorded Investment | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment YTD | 0 | 0 |
Commercial Real Estate | Real estate | ||
Impaired Loans | ||
Unpaid Contractual Principal Balance | 1,104 | 382 |
Recorded Investment with No Allowance | 1,104 | 382 |
Recorded Investment With Allowance | 0 | 0 |
Total Recorded Investment | 1,104 | 382 |
Related Allowance | 0 | 0 |
Average Recorded Investment YTD | 1,140 | 440 |
1 - 4 family residential | Real estate | Real estate | ||
Impaired Loans | ||
Unpaid Contractual Principal Balance | 163 | 164 |
Recorded Investment with No Allowance | 163 | 164 |
Recorded Investment With Allowance | 0 | 0 |
Total Recorded Investment | 163 | 164 |
Related Allowance | 0 | 0 |
Average Recorded Investment YTD | 212 | 265 |
Multi-family residential | Real estate | Real estate | ||
Impaired Loans | ||
Unpaid Contractual Principal Balance | 0 | 0 |
Recorded Investment with No Allowance | 0 | 0 |
Recorded Investment With Allowance | 0 | 0 |
Total Recorded Investment | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment YTD | $ 0 | $ 0 |
Loans and Allowance for Loan 44
Loans and Allowance for Loan Losses - Troubled Debt Restructuring (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2017USD ($)Loan | Jun. 30, 2016Loan | Dec. 31, 2016USD ($) | |
Receivables [Abstract] | |||
Recorded investment in TDRs | $ | $ 653 | $ 822 | |
Number of loans modified as TDRs | 0 | 0 | |
Number of loans modified as TDRs for which there was a payment default | 1 | 0 |
Loans and Allowance for Loan 45
Loans and Allowance for Loan Losses - Credit Quality Indicators (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Credit Quality Indicators | ||
Loans | $ 1,122,468 | $ 991,897 |
Pass | ||
Credit Quality Indicators | ||
Loans | 1,107,229 | 986,808 |
Special Mention | ||
Credit Quality Indicators | ||
Loans | 12,348 | 3,722 |
Substandard | ||
Credit Quality Indicators | ||
Loans | 2,775 | 1,260 |
Doubtful | ||
Credit Quality Indicators | ||
Loans | 116 | 107 |
Commercial | ||
Credit Quality Indicators | ||
Loans | 347,017 | 291,416 |
Commercial | Pass | ||
Credit Quality Indicators | ||
Loans | 338,701 | 289,589 |
Commercial | Special Mention | ||
Credit Quality Indicators | ||
Loans | 6,990 | 686 |
Commercial | Substandard | ||
Credit Quality Indicators | ||
Loans | 1,210 | 1,034 |
Commercial | Doubtful | ||
Credit Quality Indicators | ||
Loans | 116 | 107 |
Consumer | ||
Credit Quality Indicators | ||
Loans | 3,688 | 4,089 |
Consumer | Pass | ||
Credit Quality Indicators | ||
Loans | 3,672 | 4,078 |
Consumer | Special Mention | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Consumer | Substandard | ||
Credit Quality Indicators | ||
Loans | 16 | 11 |
Consumer | Doubtful | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Construction and land | Real estate | ||
Credit Quality Indicators | ||
Loans | 136,332 | 162,614 |
Construction and land | Real estate | Pass | ||
Credit Quality Indicators | ||
Loans | 136,332 | 162,614 |
Construction and land | Real estate | Special Mention | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Construction and land | Real estate | Substandard | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Construction and land | Real estate | Doubtful | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Farmland | Real estate | ||
Credit Quality Indicators | ||
Loans | 8,448 | 8,262 |
Farmland | Real estate | Pass | ||
Credit Quality Indicators | ||
Loans | 8,448 | 8,262 |
Farmland | Real estate | Special Mention | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Farmland | Real estate | Substandard | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Farmland | Real estate | Doubtful | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Real estate | Real estate | ||
Credit Quality Indicators | ||
Loans | 196,088 | 154,820 |
Real estate | 1 - 4 family residential | Real estate | ||
Credit Quality Indicators | ||
Loans | 157,823 | 140,137 |
Real estate | 1 - 4 family residential | Real estate | Pass | ||
Credit Quality Indicators | ||
Loans | 157,564 | 139,212 |
Real estate | 1 - 4 family residential | Real estate | Special Mention | ||
Credit Quality Indicators | ||
Loans | 0 | 710 |
Real estate | 1 - 4 family residential | Real estate | Substandard | ||
Credit Quality Indicators | ||
Loans | 259 | 215 |
Real estate | 1 - 4 family residential | Real estate | Doubtful | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Real estate | Multi-family residential | Real estate | ||
Credit Quality Indicators | ||
Loans | 38,265 | 14,683 |
Real estate | Multi-family residential | Real estate | Pass | ||
Credit Quality Indicators | ||
Loans | 38,265 | 14,683 |
Real estate | Multi-family residential | Real estate | Special Mention | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Real estate | Multi-family residential | Real estate | Substandard | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Real estate | Multi-family residential | Real estate | Doubtful | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Commercial Real Estate | Real estate | ||
Credit Quality Indicators | ||
Loans | 430,895 | 370,696 |
Commercial Real Estate | Real estate | Pass | ||
Credit Quality Indicators | ||
Loans | 424,247 | 368,370 |
Commercial Real Estate | Real estate | Special Mention | ||
Credit Quality Indicators | ||
Loans | 5,358 | 2,326 |
Commercial Real Estate | Real estate | Substandard | ||
Credit Quality Indicators | ||
Loans | 1,290 | 0 |
Commercial Real Estate | Real estate | Doubtful | ||
Credit Quality Indicators | ||
Loans | $ 0 | $ 0 |
Loans and Allowance for Loan 46
Loans and Allowance for Loan Losses - Allowance (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | |
Analysis of allowance for loan losses | ||||||
Balance at beginning of period | $ 8,524 | $ 6,772 | $ 6,772 | |||
Provision (recapture) charged to earnings | 1,833 | 1,372 | 2,050 | |||
Charge-offs | (622) | (249) | (333) | |||
Recoveries | 5 | 15 | 35 | |||
Net charge-offs (recoveries) | (617) | (234) | (298) | |||
Balance at end of period | 9,740 | 7,910 | 8,524 | |||
Specific reserves: | ||||||
Impaired loans | $ 138 | $ 250 | $ 84 | |||
Total specific reserves | 138 | 250 | 84 | |||
General reserves | 9,602 | 8,274 | 7,826 | |||
Total | 8,524 | 6,772 | 6,772 | $ 9,740 | $ 8,524 | $ 7,910 |
Allowance for loan losses (as a percent) | 0.87% | 0.86% | 0.85% | |||
Commercial | ||||||
Analysis of allowance for loan losses | ||||||
Balance at beginning of period | 2,955 | 2,324 | 2,324 | |||
Provision (recapture) charged to earnings | 1,205 | 618 | 913 | |||
Charge-offs | (611) | (240) | (314) | |||
Recoveries | 5 | 14 | 32 | |||
Net charge-offs (recoveries) | (606) | (226) | (282) | |||
Balance at end of period | 3,554 | 2,716 | 2,955 | |||
Specific reserves: | ||||||
Impaired loans | $ 137 | $ 246 | $ 80 | |||
Total specific reserves | 137 | 246 | 80 | |||
General reserves | 3,417 | 2,709 | 2,636 | |||
Total | 2,955 | 2,324 | 2,324 | 3,554 | 2,955 | 2,716 |
Consumer | ||||||
Analysis of allowance for loan losses | ||||||
Balance at beginning of period | 35 | 31 | 31 | |||
Provision (recapture) charged to earnings | (5) | 4 | 20 | |||
Charge-offs | 0 | (9) | (19) | |||
Recoveries | 0 | 1 | 3 | |||
Net charge-offs (recoveries) | 0 | (8) | (16) | |||
Balance at end of period | 30 | 27 | 35 | |||
Specific reserves: | ||||||
Impaired loans | 1 | 4 | 4 | |||
Total specific reserves | 1 | 4 | 4 | |||
General reserves | 29 | 31 | 23 | |||
Total | 35 | 31 | 31 | 30 | 35 | 27 |
Construction, Land and Farmland | Real estate | ||||||
Analysis of allowance for loan losses | ||||||
Balance at beginning of period | 1,415 | 1,104 | 1,104 | |||
Provision (recapture) charged to earnings | (291) | 286 | 311 | |||
Charge-offs | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | |||
Net charge-offs (recoveries) | 0 | 0 | 0 | |||
Balance at end of period | 1,124 | 1,390 | 1,415 | |||
Specific reserves: | ||||||
Impaired loans | 0 | 0 | 0 | |||
Total specific reserves | 0 | 0 | 0 | |||
General reserves | 1,124 | 1,415 | 1,390 | |||
Total | 1,415 | 1,104 | 1,104 | 1,124 | 1,415 | 1,390 |
Residential | Real estate | ||||||
Analysis of allowance for loan losses | ||||||
Balance at beginning of period | 1,116 | 1,124 | 1,124 | |||
Provision (recapture) charged to earnings | 370 | 67 | (8) | |||
Charge-offs | (11) | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | |||
Net charge-offs (recoveries) | (11) | 0 | 0 | |||
Balance at end of period | 1,475 | 1,191 | 1,116 | |||
Specific reserves: | ||||||
Impaired loans | 0 | 0 | 0 | |||
Total specific reserves | 0 | 0 | 0 | |||
General reserves | 1,475 | 1,116 | 1,191 | |||
Total | 1,116 | 1,124 | 1,124 | 1,475 | 1,116 | 1,191 |
Commercial Real Estate | Real estate | ||||||
Analysis of allowance for loan losses | ||||||
Balance at beginning of period | 3,003 | 2,189 | 2,189 | |||
Provision (recapture) charged to earnings | 554 | 397 | 814 | |||
Charge-offs | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | |||
Net charge-offs (recoveries) | 0 | 0 | 0 | |||
Balance at end of period | 3,557 | 2,586 | 3,003 | |||
Specific reserves: | ||||||
Impaired loans | 0 | 0 | 0 | |||
Total specific reserves | 0 | 0 | 0 | |||
General reserves | 3,557 | 3,003 | 2,586 | |||
Total | $ 3,003 | $ 2,189 | $ 2,189 | $ 3,557 | $ 3,003 | $ 2,586 |
Loans and Allowance for Loan 47
Loans and Allowance for Loan Losses - Allowance, Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Allowance, impairment methodology | ||
Loans individually evaluated for impairment | $ 2,146 | $ 1,593 |
Loans collectively evaluated for impairment | 1,120,322 | 990,304 |
Total Loans | 1,122,468 | 991,897 |
Commercial | ||
Allowance, impairment methodology | ||
Loans individually evaluated for impairment | 793 | 955 |
Loans collectively evaluated for impairment | 346,224 | 290,461 |
Total Loans | 347,017 | 291,416 |
Consumer | ||
Allowance, impairment methodology | ||
Loans individually evaluated for impairment | 86 | 92 |
Loans collectively evaluated for impairment | 3,602 | 3,997 |
Total Loans | 3,688 | 4,089 |
Construction, Land and Farmland | Real estate | ||
Allowance, impairment methodology | ||
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 144,780 | 170,876 |
Total Loans | 144,780 | 170,876 |
Residential | Real estate | ||
Allowance, impairment methodology | ||
Loans individually evaluated for impairment | 163 | 164 |
Loans collectively evaluated for impairment | 195,925 | 154,656 |
Total Loans | 196,088 | 154,820 |
Commercial Real Estate | Real estate | ||
Allowance, impairment methodology | ||
Loans individually evaluated for impairment | 1,104 | 382 |
Loans collectively evaluated for impairment | 429,791 | 370,314 |
Total Loans | $ 430,895 | $ 370,696 |
Loans and Allowance for Loan 48
Loans and Allowance for Loan Losses - Servicing Assets (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Servicing Asset at Amortized Cost [Line Items] | |||
Servicing asset | $ 44,720,000 | ||
Summary of changes in related servicing assets | |||
Balance at beginning of year | 601,000 | $ 426,000 | |
Increase from loan sales | 281,000 | 111,000 | |
Amortization charged to income | (88,000) | (55,000) | |
Balance at end of period | 794,000 | $ 482,000 | |
Valuation allowance recorded | 0 | ||
Interest receivable | 3,333,000 | $ 2,907,000 | |
Interest-only strip | |||
Summary of changes in related servicing assets | |||
Interest receivable | $ 0 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Income Tax Examination [Line Items] | |||||
Estimated annual effective tax rate (as a percent) | 34.80% | 34.10% | 34.50% | 34.10% | |
Effective tax rate (as a percent) | 33.30% | 34.10% | 32.00% | 33.90% | |
Excess tax benefit and other | $ 83 | $ 255 | |||
Excess tax benefit realized on share-based payment awards | 42 | 214 | |||
Net deferred tax asset | $ 3,467 | ||||
Other assets | |||||
Income Tax Examination [Line Items] | |||||
Net deferred tax asset | 3,452 | 3,452 | |||
Accrued interest payable and other liabilities | |||||
Income Tax Examination [Line Items] | |||||
Current tax liability | $ 94 | $ 94 | |||
Current tax receivable | $ 91 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Operating Leases | ||
Rental expense on operating lease | $ 881 | $ 684 |
Fair Value Disclosures - Recurr
Fair Value Disclosures - Recurring Basis (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Assets measured at fair value | |||
Investment securities available for sale | $ 134,708,000 | $ 102,559,000 | |
Recurring | |||
Assets measured at fair value | |||
Investment securities available for sale | 134,708,000 | 102,559,000 | |
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 1 Inputs | |||
Assets measured at fair value | |||
Investment securities available for sale | 0 | 0 | |
Recurring | Level 2 Inputs | |||
Assets measured at fair value | |||
Investment securities available for sale | 134,708,000 | 102,559,000 | |
Recurring | Level 3 Inputs | |||
Assets measured at fair value | |||
Investment securities available for sale | $ 0 | $ 0 |
Fair Value Disclosures - Non-re
Fair Value Disclosures - Non-recurring Basis (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Assets measured at fair value | ||
Impaired loans, carrying value | $ 2,146,000 | $ 1,593,000 |
Impaired loans, specific allowance | 138,000 | 250,000 |
Non-recurring | ||
Assets measured at fair value | ||
Impaired loans | 2,008,000 | 1,343,000 |
Liabilities measured at fair value | 0 | 0 |
Non-recurring | Level 1 | ||
Assets measured at fair value | ||
Impaired loans | 0 | 0 |
Non-recurring | Level 2 | ||
Assets measured at fair value | ||
Impaired loans | 0 | 0 |
Non-recurring | Level 3 | ||
Assets measured at fair value | ||
Impaired loans | $ 2,008,000 | $ 1,343,000 |
Fair Value Disclosures - Level
Fair Value Disclosures - Level 3 (Details) - Impaired loans - Collateral Method - Level 3 - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Significant unobservable inputs used in the fair value measurements | ||
Fair Value | $ 2,008 | $ 1,343 |
Weighted Average (as a percent) | 8.00% | 8.00% |
Fair Value Disclosures - Financ
Fair Value Disclosures - Financial Instruments (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Estimated fair values and carrying values of all financial instruments | ||
Valuation allowance recorded for servicing assets | $ 0 | $ 0 |
Maximum maturity period for Federal Home Loan Bank advances recorded at carrying value | 90 days | |
Financial assets: | ||
Investment securities | $ 134,708,000 | 102,559,000 |
Financial liabilities: | ||
Junior subordinated debentures | 3,093,000 | 3,093,000 |
Subordinated notes | 4,946,000 | 4,942,000 |
Level 1 | Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 173,146,000 | 234,791,000 |
Level 1 | Total Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 173,146,000 | 234,791,000 |
Level 2 | Carrying Amount | ||
Financial assets: | ||
Investment securities | 134,708,000 | 102,559,000 |
Loans held for sale | 4,118,000 | 5,208,000 |
Accrued interest receivable | 3,333,000 | 2,907,000 |
Bank-owned life insurance | 20,369,000 | 20,077,000 |
Servicing asset | 794,000 | 601,000 |
Non-marketable equity securities | 7,407,000 | 7,366,000 |
Financial liabilities: | ||
Deposits | 1,211,107,000 | 1,119,630,000 |
Advances from FHLB | 38,235,000 | 38,306,000 |
Accrued interest payable | 125,000 | 141,000 |
Junior subordinated debentures | 3,093,000 | 3,093,000 |
Subordinated notes | 4,946,000 | 4,942,000 |
Level 2 | Total Fair Value | ||
Financial assets: | ||
Investment securities | 134,708,000 | 102,559,000 |
Loans held for sale | 4,118,000 | 5,208,000 |
Accrued interest receivable | 3,333,000 | 2,907,000 |
Bank-owned life insurance | 20,369,000 | 20,077,000 |
Servicing asset | 794,000 | 601,000 |
Non-marketable equity securities | 7,407,000 | 7,366,000 |
Financial liabilities: | ||
Deposits | 1,158,631,000 | 1,085,888,000 |
Advances from FHLB | 38,280,000 | 38,570,000 |
Accrued interest payable | 125,000 | 141,000 |
Junior subordinated debentures | 3,093,000 | 3,093,000 |
Subordinated notes | 4,946,000 | 4,942,000 |
Level 3 | Carrying Amount | ||
Financial assets: | ||
Loans, net | 1,112,688,000 | 983,318,000 |
Level 3 | Total Fair Value | ||
Financial assets: | ||
Loans, net | $ 1,120,692,000 | $ 987,021,000 |
Financial Instruments with Of55
Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Financial instruments with off-balance sheet risk | ||
Total commitments | $ 275,799 | $ 243,852 |
Commitments to extend credit | ||
Financial instruments with off-balance sheet risk | ||
Total commitments | 269,863 | 236,919 |
Standby and commercial letters of credit | ||
Financial instruments with off-balance sheet risk | ||
Total commitments | $ 5,936 | $ 6,933 |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) | 1 Months Ended | 6 Months Ended | ||
Jan. 31, 2014 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
ESOP | ||||
Matching contributions to 401(k) profit sharing Plan | $ 0 | $ 0 | ||
Summary of ESOP shares | ||||
Allocated shares | 44,257 | 44,257 | ||
Unearned shares | 18,783 | 18,783 | ||
Total ESOP shares | 63,040 | 63,040 | ||
Fair value of unearned shares | $ 495,000 | $ 502,000 | ||
ESOP | ||||
ESOP | ||||
Amount borrowed | $ 500,000 | |||
Common stock shares purchased by ESOP (in shares) | 46,082 | |||
Compensation expense | $ 57,000 | $ 92,000 |
Stock and Incentive Plan - 2010
Stock and Incentive Plan - 2010 Plan (Details) - 2010 Stock Option and Equity Incentive Plan - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2010 | |
Stock and Incentive Plans | |||||
Number of shares authorized | 1,000,000 | ||||
Stock based compensation expense | $ 20 | $ 29 | $ 42 | $ 57 | |
Restricted shares | |||||
Stock and Incentive Plans | |||||
Number of shares authorized | 100,000 | ||||
Term of continuous service for vesting awards | 4 years | ||||
Number of shares awarded | 0 | 0 | |||
Fair value of vested restricted stock units | $ 26 | $ 97 | |||
Stock option | |||||
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 | ||||
Performance-based stock options | |||||
Stock and Incentive Plans | |||||
Number of shares authorized | 500,000 | ||||
Number of shares awarded under stock options | 0 | 0 | |||
Nonperformance-based stock options | |||||
Stock and Incentive Plans | |||||
Number of shares awarded under stock options | 0 | 0 | |||
Fair value of exercised non-performance based options | $ 422 | $ 0 |
Stock and Incentive Plan - 2058
Stock and Incentive Plan - 2010 Plan - Options (Details) - Nonperformance-based stock options - 2010 Stock Option and Equity Incentive Plan - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Shares Underlying Options | ||||
Outstanding at beginning of period (in shares) | 325,500 | 325,500 | 325,500 | |
Granted during the period (in shares) | 0 | 0 | ||
Forfeited during the period (in shares) | 0 | 0 | ||
Canceled during the period (in shares) | 0 | |||
Exercised during the period (in shares) | (15,000) | 0 | ||
Outstanding at the end of period (in shares) | 310,500 | 325,500 | 325,500 | 325,500 |
Options exercisable at end of period (in shares) | 297,000 | 298,200 | ||
Weighted Exercise Price | ||||
Outstanding at beginning of period (in dollars per share) | $ 10.15 | $ 10.15 | $ 10.15 | |
Granted during the period (in dollars per share) | 0 | 0 | ||
Forfeited during the period (in dollars per share) | 0 | 0 | ||
Canceled during the period (in dollars per share) | 0 | |||
Exercised during the period (in dollars per share) | 10 | 0 | ||
Outstanding at the end of period (in dollars per share) | 10.16 | 10.15 | $ 10.15 | $ 10.15 |
Options exercisable at end of period (in dollars per share) | 10.12 | 10.09 | ||
Weighted average fair value of options granted during the period (in dollars per share) | $ 0 | $ 0 | ||
Weighted Average Contractual Term | ||||
Outstanding at beginning of period | 4 years 1 month 2 days | 5 years 22 days | 4 years 6 months 22 days | 5 years 6 months 22 days |
Outstanding at the end of period | 4 years 1 month 2 days | 5 years 22 days | 4 years 6 months 22 days | 5 years 6 months 22 days |
Options exercisable at end of period | 4 years | 4 years 10 months 28 days | ||
Additional disclosures | ||||
Aggregate intrinsic value of outstanding stock options | $ 5,022 | $ 1,911 | $ 5,390 | |
Aggregate intrinsic value of exercisable stock options | 4,814 | 1,768 | 5,086 | |
Unrecognized compensation expense | $ 15 | $ 36 | $ 21 | |
Requisite service period to recognize compensation cost | 1 year |
Stock and Incentive Plan - 2059
Stock and Incentive Plan - 2010 Plan - Restricted Stock Units (Details) - Restricted stock units - 2010 Stock Option and Equity Incentive Plan - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Shares | |||
Nonvested at the beginning of the period (in shares) | 27,750 | 39,750 | |
Granted during the period (in shares) | 0 | 0 | |
Vested during the period (in shares) | (1,000) | (6,000) | |
Forfeited during the period (in shares) | (500) | 0 | |
Nonvested at the end of the period (in shares) | 26,250 | 33,750 | |
Weighted Average Grant Date Fair Value | |||
Nonvested at the beginning of the period (in dollars per share) | $ 11.92 | $ 11.34 | |
Granted during the period (in dollars per share) | 0 | 0 | |
Vested during the period (in dollars per share) | 10.85 | 10 | |
Forfeited during the period (in dollars per share) | 10.85 | 0 | |
Nonvested at the end of the period (in dollars per share) | $ 11.98 | $ 11.58 | |
Additional disclosures | |||
Unrecognized compensation expense | $ 54 | $ 132 | $ 90 |
Requisite service period to recognize compensation cost | 8 months 27 days |
Stock and Incentive Plan - Omni
Stock and Incentive Plan - Omnibus Plan (Details) - Omnibus Plan - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Sep. 30, 2014 | |
Stock and Incentive Plans | |||||
Number of shares authorized | 1,000,000 | ||||
Non-performance based restricted stock units | |||||
Stock and Incentive Plans | |||||
Number of shares awarded | 31,375 | 22,060 | |||
Non-performance based restricted stock units | Equal annual installments, tranche one | |||||
Stock and Incentive Plans | |||||
Vesting period | 3 years | ||||
Non-performance based restricted stock units | No market condition | Minimum | |||||
Stock and Incentive Plans | |||||
Vesting period | 1 year | ||||
Non-performance based restricted stock units | No market condition | Maximum | |||||
Stock and Incentive Plans | |||||
Vesting period | 5 years | ||||
Performance based restricted stock units | |||||
Stock and Incentive Plans | |||||
Number of shares awarded | 25,522 | 34,190 | |||
Performance based restricted stock units | Market condition based on the Company's total shareholder return relative to a market index | |||||
Stock and Incentive Plans | |||||
Vesting period | 3 years | ||||
Stock option | |||||
Stock and Incentive Plans | |||||
Number of shares awarded under stock options | 65,440 | 71,286 | |||
Stock based compensation expense | $ 97 | $ 53 | $ 194 | $ 104 | |
Market condition restricted stock units | |||||
Stock and Incentive Plans | |||||
Number of shares awarded | 34,190 | ||||
Restricted stock units | |||||
Stock and Incentive Plans | |||||
Stock based compensation expense | $ 277 | $ 159 | $ 555 | $ 302 |
Stock and Incentive Plan - Om61
Stock and Incentive Plan - Omnibus Plan Black Scholes Assumptions - (Details) - Omnibus Plan | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
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, minimum (as a percent) | 32.10% | 35.23% |
Expected volatility, maximum (as a percent) | 37.55% | 37.55% |
Risk-free interest rate, minimum (as a percent) | 1.06% | 1.26% |
Risk-free interest rate, maximum (as a percent) | 2.32% | 2.01% |
Minimum | ||
Assumptions used to measure fair value of each option award estimated on grant date using Black-Scholes option-pricing model | ||
Expected life | 5 years | 5 years |
Maximum | ||
Assumptions used to measure fair value of each option award estimated on grant date using Black-Scholes option-pricing model | ||
Expected life | 7 years 6 months | 6 years 6 months |
Stock and Incentive Plan - Om62
Stock and Incentive Plan - Omnibus Plan - Options (Details) - Omnibus Plan - Nonperformance-based stock options - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Shares Underlying Options | ||||
Outstanding at beginning of period (in shares) | 128,366 | 52,080 | 52,080 | |
Granted during the period (in shares) | 65,440 | 71,286 | ||
Forfeited during the period (in shares) | (3,465) | 0 | ||
Canceled during the period (in shares) | 0 | 0 | ||
Exercised during the period (in shares) | (1,544) | 0 | ||
Outstanding at the end of period (in shares) | 188,797 | 123,366 | 128,366 | 52,080 |
Options exercisable at end of period (in shares) | 51,204.29 | 14,693 | ||
Weighted Exercise Price | ||||
Outstanding at beginning of period (in dollars per share) | $ 15.32 | $ 14.35 | $ 14.35 | |
Granted during the period (in dollars per share) | 26.89 | 15.88 | ||
Forfeited during the period (in dollars per share) | 21.24 | 0 | ||
Canceled during the period (in dollars per share) | 0 | 0 | ||
Exercised during the period (in dollars per share) | 15 | 0 | ||
Outstanding at the end of period (in dollars per share) | 19.22 | 15.23 | $ 15.32 | $ 14.35 |
Options exercisable at end of period (in dollars per share) | 14.96 | 14.17 | ||
Weighted average fair value of options granted during the period (in dollars per share) | $ 10.22 | $ 6.09 | ||
Weighted Average Contractual Term | ||||
Outstanding at beginning of period | 8 years 7 months 17 days | 9 years 1 month 28 days | 8 years 8 months 9 days | 9 years 1 month 13 days |
Outstanding at the end of period | 8 years 7 months 17 days | 9 years 1 month 28 days | 8 years 8 months 9 days | 9 years 1 month 13 days |
Options exercisable at end of period | 7 years 11 months 5 days | 8 years 6 months 4 days | ||
Additional disclosures | ||||
Aggregate intrinsic value of outstanding stock options | $ 1,342 | $ 97 | $ 1,462 | |
Aggregate intrinsic value of exercisable stock options | $ 582 | $ 27 | $ 203 |
Stock and Incentive Plan - Om63
Stock and Incentive Plan - Omnibus Plan - Restricted Stock Units (Details) - Omnibus Plan - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Non-performance based restricted stock units | |||
Units | |||
Nonvested at the beginning of the period (in shares) | 67,956 | 70,919 | |
Granted during the period (in shares) | 31,375 | 22,060 | |
Vested during the period (in shares) | (8,475) | (5,476) | |
Forfeited during the period (in shares) | (2,250) | 0 | |
Nonvested at the end of the period (in shares) | 88,606 | 87,503 | |
Weighted Average Grant Date Fair Value | |||
Nonvested at the beginning of the period (in dollars per share) | $ 13.79 | $ 13.29 | |
Granted during the period (in dollars per share) | 27.49 | 15.63 | |
Vested during the period (in dollars per share) | 25.42 | 16.07 | |
Forfeited during the period (in dollars per share) | 27.93 | 0 | |
Nonvested at the end of the period (in dollars per share) | $ 17.17 | $ 13.70 | |
Additional disclosures | |||
Fair value of vested restricted stock units | $ 233 | $ 87 | |
Performance based restricted stock units | |||
Units | |||
Nonvested at the beginning of the period (in shares) | 51,197 | 25,474 | |
Granted during the period (in shares) | 25,522 | 34,190 | |
Vested during the period (in shares) | (19,861) | (8,467) | |
Forfeited during the period (in shares) | (2,014) | 0 | |
Nonvested at the end of the period (in shares) | 54,844 | 51,197 | |
Weighted Average Grant Date Fair Value | |||
Nonvested at the beginning of the period (in dollars per share) | $ 8.72 | $ 9.45 | |
Granted during the period (in dollars per share) | 24.34 | 9.52 | |
Vested during the period (in dollars per share) | 15.34 | 14.17 | |
Forfeited during the period (in dollars per share) | 15.68 | 0 | |
Nonvested at the end of the period (in dollars per share) | $ 13.33 | $ 8.72 | |
Additional disclosures | |||
Fair value of vested restricted stock units | $ 530 | $ 137 | |
Stock option | |||
Additional disclosures | |||
Unrecognized compensation expense | $ 881 | 507 | $ 425 |
Requisite service period to recognize compensation cost | 2 years 5 months 12 days | ||
Restricted stock units | |||
Additional disclosures | |||
Unrecognized compensation expense | $ 1,923 | 1,348 | $ 1,089 |
Requisite service period to recognize compensation cost | 2 years 5 months 9 days | ||
Nonperformance-based stock options | |||
Additional disclosures | |||
Fair value of exercised non-performance based options | $ 41 | $ 0 |
Capital Requirements and Rest64
Capital Requirements and Restrictions on Retained Earnings (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Total capital (to risk weighted assets) | ||
Actual Amount | $ 236,955 | $ 228,566 |
Actual Ratio (as a percent) | 18.92% | 22.02% |
For Capital Adequacy Purposes Amount | $ 100,192 | $ 83,039 |
For Capital Adequacy Purposes Ratio (as a percent) | 8.00% | 8.00% |
Tier 1 capital (to risk weighted assets) | ||
Actual Amount | $ 222,269 | $ 215,057 |
Actual Ratio (as a percent) | 17.75% | 20.72% |
For Capital Adequacy Purposes Amount | $ 75,133 | $ 62,275 |
For Capital Adequacy Purposes Ratio (as a percent) | 6.00% | 6.00% |
Common equity tier 1 to risk weighted assets | ||
Actual Amount | $ 219,176 | $ 211,964 |
Actual Ratio (as a percent) | 17.50% | 20.42% |
For Capital Adequacy Purposes Amount | $ 56,360 | $ 46,711 |
For Capital Adequacy Purposes Amount (as a percent) | 4.50% | 4.50% |
Tier 1 capital (to average assets) | ||
Actual Amount | $ 222,269 | $ 215,057 |
Actual Ratio (as a percent) | 15.09% | 16.82% |
For Capital Adequacy Purposes Amount | $ 58,918 | $ 51,143 |
For Capital Adequacy Purposes Ratio (as a percent) | 4.00% | 4.00% |
Bank | ||
Total capital (to risk weighted assets) | ||
Actual Amount | $ 139,381 | $ 130,237 |
Actual Ratio (as a percent) | 11.14% | 12.55% |
For Capital Adequacy Purposes Amount | $ 100,094 | $ 83,020 |
For Capital Adequacy Purposes Ratio (as a percent) | 8.00% | 8.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 125,118 | $ 103,775 |
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 | $ 129,642 | $ 121,713 |
Actual Ratio (as a percent) | 10.36% | 11.73% |
For Capital Adequacy Purposes Amount | $ 75,082 | $ 62,257 |
For Capital Adequacy Purposes Ratio (as a percent) | 6.00% | 6.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 100,110 | $ 83,010 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 8.00% | 8.00% |
Common equity tier 1 to risk weighted assets | ||
Actual Amount | $ 129,642 | $ 121,713 |
Actual Ratio (as a percent) | 10.36% | 11.73% |
For Capital Adequacy Purposes Amount | $ 56,312 | $ 46,693 |
For Capital Adequacy Purposes Amount (as a percent) | 4.50% | 4.50% |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 81,339 | $ 67,445 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 6.50% | 6.50% |
Tier 1 capital (to average assets) | ||
Actual Amount | $ 129,642 | $ 121,713 |
Actual Ratio (as a percent) | 8.81% | 9.52% |
For Capital Adequacy Purposes Amount | $ 58,861 | $ 51,140 |
For Capital Adequacy Purposes Ratio (as a percent) | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 73,577 | $ 63,925 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 5.00% | 5.00% |
Business Combinations (Details)
Business Combinations (Details) $ in Thousands | Aug. 01, 2017USD ($)branchRepresentativeshares | Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) |
Business Acquisition [Line Items] | |||
Assets | $ 1,508,589 | $ 1,408,507 | |
Deposits | 1,211,107 | $ 1,119,630 | |
Forecast | Merger with Sovereign Bancshares, Inc. | |||
Business Acquisition [Line Items] | |||
Number of shares issued in connection with acquisition | shares | 5,117,647 | ||
Cash portion of acquisition | $ 58,000 | ||
Conversion ratio | 1 | ||
Number of representatives from acquiree's board of directors to join Company's board of directors | Representative | 2 | ||
Sovereign Bancshares, Inc. | |||
Business Acquisition [Line Items] | |||
Assets | 1,000,000 | ||
Deposits | $ 813,000 | ||
Sovereign Bancshares, Inc. | Forecast | Merger with Sovereign Bancshares, Inc. | |||
Business Acquisition [Line Items] | |||
Number of shares to be converted | shares | 24,500 | ||
Dallas-Fort Worth | Forecast | Merger with Sovereign Bancshares, Inc. | |||
Business Acquisition [Line Items] | |||
Number of bank branches acquired | branch | 7 | ||
Austin | Forecast | Merger with Sovereign Bancshares, Inc. | |||
Business Acquisition [Line Items] | |||
Number of bank branches acquired | branch | 2 | ||
Houston | Forecast | Merger with Sovereign Bancshares, Inc. | |||
Business Acquisition [Line Items] | |||
Number of bank branches acquired | branch | 1 |