Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 28, 2016 | |
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, 2016 | |
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 | 10,732,906 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and due from banks | $ 12,951 | $ 10,989 |
Interest bearing deposits in other banks | 114,293 | 60,562 |
Total cash and cash equivalents | 127,244 | 71,551 |
Investment securities | 83,677 | 75,813 |
Loans held for sale | 4,793 | 2,831 |
Loans, net of allowance for loan losses of $7,910 and $6,772, respectively | 920,039 | 813,733 |
Accrued interest receivable | 2,259 | 2,216 |
Bank-owned life insurance | 19,767 | 19,459 |
Bank premises, furniture and equipment, net | 17,243 | 17,449 |
Non-marketable equity securities | 7,035 | 4,167 |
Investment in unconsolidated subsidiary | 93 | 93 |
Other real estate owned | 493 | 493 |
Intangible assets, net of accumulated amortization of $1,861 and $1,605, respectively | 2,264 | 2,410 |
Goodwill | 26,865 | 26,865 |
Other assets | 3,725 | 2,520 |
Total assets | 1,215,497 | 1,039,600 |
Deposits: | ||
Noninterest-bearing | 354,570 | 301,367 |
Interest-bearing | 673,159 | 567,043 |
Total deposits | 1,027,729 | 868,410 |
Accounts payable and accrued expenses | 1,611 | 1,776 |
Accrued interest payable and other liabilities | 855 | 848 |
Advances from Federal Home Loan Bank | 38,375 | 28,444 |
Junior subordinated debentures | 3,093 | 3,093 |
Subordinated notes | 4,984 | 4,983 |
Total liabilities | 1,076,647 | 907,554 |
Commitments and contingencies (Note 6) | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value; 10,000,000 shares authorized at June 30, 2016 and December 31, 2015 | ||
Common stock, $0.01 par value; 75,000,000 shares authorized at June 30, 2016 and December 31, 2015; 10,727,863 and 10,712,472 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively (excluding 10,000 shares held in treasury) | 107 | 107 |
Additional paid-in capital | 116,111 | 115,721 |
Retained earnings | 22,725 | 16,739 |
Unallocated Employee Stock Ownership Plan shares; 27,993 and 27,993 shares at June 30, 2016 and December 31, 2015, respectively | (309) | (309) |
Accumulated other comprehensive income (loss) | 286 | (142) |
Treasury stock, 10,000 shares at cost | (70) | (70) |
Total stockholders' equity | 138,850 | 132,046 |
Total liabilities and stockholders' equity | $ 1,215,497 | $ 1,039,600 |
Condensed Consolidated Consolid
Condensed Consolidated Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Consolidated Balance Sheets | ||
Allowance for loan losses | $ 7,910 | $ 6,772 |
Accumulated amortization | $ 1,861 | $ 1,605 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
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 | 10,727,863 | 10,712,472 |
Common stock, shares outstanding | 10,727,863 | 10,712,472 |
Unallocated Employee Stock Ownership Plan shares, shares | 27,993 | 27,993 |
Treasury stock, shares | 10,000 | 10,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Interest income: | ||||
Interest and fees on loans | $ 11,052 | $ 7,454 | $ 21,407 | $ 14,802 |
Interest on investment securities | 344 | 252 | 679 | 464 |
Interest on deposits in other banks | 80 | 55 | 173 | 109 |
Interest on other | 1 | 2 | 1 | |
Total interest income | 11,477 | 7,761 | 22,261 | 15,376 |
Interest expense: | ||||
Interest on deposit accounts | 1,072 | 666 | 2,007 | 1,297 |
Interest on borrowings | 177 | 123 | 335 | 249 |
Total interest expense | 1,249 | 789 | 2,342 | 1,546 |
Net interest income | 10,228 | 6,972 | 19,919 | 13,830 |
Provision for loan losses | 527 | 148 | 1,372 | 258 |
Net interest income after provision for loan losses | 9,701 | 6,824 | 18,547 | 13,572 |
Noninterest income: | ||||
Service charges and fees on deposit accounts | 443 | 282 | 877 | 527 |
Gain on sales of investment securities | 15 | 7 | ||
Gain on sales of loans | 620 | 129 | 1,282 | 431 |
Loss on sales of other assets owned | (2) | |||
Bank-owned life insurance | 191 | 179 | 384 | 357 |
Other | 158 | 98 | 227 | 134 |
Total noninterest income | 1,412 | 688 | 2,785 | 1,454 |
Noninterest expense: | ||||
Salaries and employee benefits | 3,589 | 2,588 | 6,763 | 5,245 |
Occupancy and equipment | 894 | 808 | 1,795 | 1,665 |
Professional fees | 503 | 365 | 1,076 | 905 |
Data processing and software expense | 270 | 272 | 554 | 535 |
FDIC assessment fees | 132 | 96 | 269 | 196 |
Marketing | 211 | 162 | 411 | 367 |
Other assets owned expenses and writedowns | 55 | 22 | 130 | 35 |
Amortization of intangibles | 95 | 74 | 190 | 148 |
Telephone and communications | 100 | 57 | 197 | 114 |
Other | 452 | 286 | 892 | 603 |
Total noninterest expense | 6,301 | 4,730 | 12,277 | 9,813 |
Net income from operations | 4,812 | 2,782 | 9,055 | 5,213 |
Income tax expense | 1,639 | 926 | 3,069 | 1,533 |
Net income | 3,173 | 1,856 | 5,986 | 3,680 |
Preferred stock dividends | 20 | 40 | ||
Net income available to common stockholders | $ 3,173 | $ 1,836 | $ 5,986 | $ 3,640 |
Basic earnings per share (in dollars per share) | $ 0.30 | $ 0.19 | $ 0.56 | $ 0.39 |
Diluted earnings per share (in dollars per share) | $ 0.29 | $ 0.19 | $ 0.55 | $ 0.38 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Consolidated Statements of Comprehensive Income | ||||
Net income | $ 3,173 | $ 1,856 | $ 5,986 | $ 3,680 |
Other comprehensive income (loss): | ||||
Unrealized (losses) gains on securities available for sale arising during the period, net | 305 | (242) | 663 | (226) |
Reclassification adjustment for net gains included in net income | 15 | 7 | ||
Other comprehensive income before tax | 305 | (242) | 648 | (233) |
Income tax (benefit) expense | 104 | (82) | 220 | (79) |
Other comprehensive income, net of tax | 201 | (160) | 428 | (154) |
Comprehensive income | $ 3,374 | $ 1,696 | $ 6,414 | $ 3,526 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Preferred Stock. | Common stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Unallocated Employee Stock Ownership Plan Shares | Treasury Stock | Total |
Balance at Dec. 31, 2014 | $ 8,000 | $ 95 | $ 97,469 | $ 8,047 | $ 172 | $ (401) | $ (70) | $ 113,312 |
Balance (in shares) at Dec. 31, 2014 | 9,470,832 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Restricted stock units vested, net 4,171 and 6,191 shares withheld to cover tax withholdings for March 31, 2016 and 2015, respectively | (96) | (96) | ||||||
Restricted stock units vested, net 4,171 and 6,191 shares withheld to cover tax withholdings for March 31, 2016 and 2015, respectively, shares | 13,809 | |||||||
Preferred stock dividend Series C | (40) | (40) | ||||||
Issuance of stock to ESOP | 115 | (5) | 110 | |||||
Issuance of stock to ESOP (in shares) | 9,147 | |||||||
Stock based compensation | 273 | 273 | ||||||
Net income | 3,680 | 3,680 | ||||||
Other comprehensive income | (154) | (154) | ||||||
Balance at Jun. 30, 2015 | $ 8,000 | $ 95 | 97,761 | 11,687 | 18 | (406) | (70) | 117,085 |
Balance (in shares) at Jun. 30, 2015 | 9,493,788 | |||||||
Balance at Dec. 31, 2015 | $ 107 | 115,721 | 16,739 | (142) | (309) | (70) | $ 132,046 | |
Balance (in shares) at Dec. 31, 2015 | 10,712,472 | 10,712,472 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Restricted stock units vested, net 4,171 and 6,191 shares withheld to cover tax withholdings for March 31, 2016 and 2015, respectively | (73) | $ (73) | ||||||
Restricted stock units vested, net 4,171 and 6,191 shares withheld to cover tax withholdings for March 31, 2016 and 2015, respectively, shares | 15,391 | |||||||
Stock based compensation | 463 | 463 | ||||||
Net income | 5,986 | 5,986 | ||||||
Other comprehensive income | 428 | 428 | ||||||
Balance at Jun. 30, 2016 | $ 107 | $ 116,111 | $ 22,725 | $ 286 | $ (309) | $ (70) | $ 138,850 | |
Balance (in shares) at Jun. 30, 2016 | 10,727,863 | 10,727,863 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - shares | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Restricted stock units | ||
Shares withheld to cover tax withholdings | 4,552 | 6,191 |
Common stock | ||
Shares withheld to cover tax withholdings | 15,391 | 13,809 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 5,986 | $ 3,680 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of core deposit intangibles | 749 | 647 |
Provision for loan losses | 1,372 | 258 |
Accretion of loan purchase discount | (243) | (59) |
Stock based compensation expense | 463 | 273 |
Amortization of other intangible assets | 59 | 2 |
Net amortization of premiums on investment securities | 431 | 207 |
Change in cash surrender value of bank-owned life insurance | (308) | (293) |
Net gain on sales of investment securities | (15) | (7) |
Gain on sales of loans held for sale | (1,282) | (431) |
Amortization of subordinated note discount | 1 | 1 |
Net gain on sales of other real estate owned | 2 | |
Originations of loans held for sale | (30,203) | (19,419) |
Write down on foreclosed assets | 114 | |
Proceeds from sales of loans held for sale | 28,823 | 26,581 |
Increase in accrued interest receivable and other assets | (1,433) | (4,700) |
(Decrease) increase in accounts payable, accrued expenses, accrued interest payable and other liabilities | (378) | (94) |
Net cash provided by operating activities | 4,136 | 6,648 |
Cash flows from investing activities: | ||
Purchases of securities available for sale | (26,706) | (23,920) |
Sales of securities available for sale | 8,378 | 3,778 |
Proceeds from maturities, calls and pay downs of investment securities | 10,696 | 5,537 |
(Purchases) sales of non-marketable equity securities, net | (2,868) | 169 |
Net loans originated | (106,849) | (42,110) |
Net additions to bank premises and equipment | (344) | (1,455) |
Proceeds from sales of other real estate owned | 48 | |
Net cash used in investing activities | (117,693) | (57,953) |
Cash flows from financing activities: | ||
Net change in deposits | 159,319 | 34,363 |
Net increase (decrease) in advances from Federal Home Loan Bank | 9,931 | (13,000) |
Dividends paid on preferred stock | (40) | |
Net cash provided by financing activities | 169,250 | 21,323 |
Net increase (decrease) in cash and cash equivalents | 55,693 | (29,982) |
Cash and cash equivalents at beginning of year | 71,551 | 93,251 |
Cash and cash equivalents at end of period | $ 127,244 | $ 63,269 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | VERITEX HOLDINGS, INC. AND SUBSIDIARY Notes to Condensed Consolidated Financial Statement s (Dollars in thousands, except for per share amounts) 1. Summary of Significant Accou nting 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 ten 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, which perform periodic examinations to ensure regulatory compliance . Basis of Presentation The accompanying 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 consolidated financial position at June 30, 2016 and December 31, 2015, consolidated results of operations for the three months and six months ended June 30, 2016 and 2015, consolidated stockholders’ equity for the six months ended June 30, 2016 and 2015 and consolidated cash flows for the six months ended June 30, 2016 and 2015. 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, 2015 included within the Company’s Form 10-K as filed with the Securities and Exchange Commission on March 15, 2016. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the 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 For purposes of comparability, c ertain prior period amounts have been reclassified to conform to the 2016 financial statement presentation within noninterest income and noninterest expense . These reclassifications only changed the reporting categories and did not affect the consolidated results of operations or consolidated financial position. 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, 2016 and 2015 : Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Earnings (numerator) Net income $ $ $ $ Less: preferred stock dividends — — Net income allocated to common stockholders $ $ $ $ Shares (denominator) Weighted average shares outstanding for basic EPS (thousands) Dilutive effect of employee stock-based awards Adjusted weighted average shares outstanding Earnings per share: Basic $ $ $ $ Diluted $ $ $ $ For the six months ended June 30, 2016 and 2015, the Company excluded from diluted EPS weighted average shares of stock options representing the right to purchase 117,624 and 44,080 shares of the Company’s common stock, respectively, as the inclusion of those shares would have been anti-dilutive. Recent Accounting Pronouncements 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. For public business entities, this ASU is effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods therein. The Company is in process of evaluating the impact of this pronouncement. 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 in process of evaluating the impact of this pronouncement. |
Supplemental Statement of Cash
Supplemental Statement of Cash Flows | 6 Months Ended |
Jun. 30, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Statement of Cash Flows | 2. Statement of Cash Flows Other supplemental cash flow information is presented below: Six Months Ended June 30, 2016 2015 Supplemental Disclosures of Cash Flow Information: Cash paid for interest $ $ Cash paid for income taxes $ $ Supplemental Disclosures of Non-Cash Flow Information: Issuance of stock to ESOP $ — $ Net issuance of common stock for vesting of restricted stock units to cover withholding $ $ Net foreclosure of other real estate owned and repossessed assets $ $ |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2016 | |
Investment Securities | |
Investment Securities | 3. 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, 2016 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available for Sale U.S. government agencies $ $ — $ $ Municipal securities Mortgage-backed securities Collateralized mortgage obligations Asset-backed securities — $ $ $ $ December 31, 2015 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available for Sale U.S. government agencies $ $ — $ $ Municipal securities Mortgage-backed securities Collateralized mortgage obligations Asset-backed securities — $ $ $ $ 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, 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 $ — $ — $ $ $ $ Municipal securities Mortgage-backed securities Collateralized mortgage obligations $ $ $ $ $ $ December 31, 2015 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 $ $ $ $ $ $ Municipal securities — — Mortgage-backed securities Collateralized mortgage obligations — — $ $ $ $ $ $ The number of investment positions in an unrealized loss position totaled 1 9 and 52 at June 30, 2016 and December 31, 2015, 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, 2016. 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, 2016 Available For Sale Amortized Fair Cost Value Due in one year or less $ — $ — Due from one year to five years Due from five years to ten years Due after ten years Mortgage-backed securities Collateralized mortgage obligations Asset-backed securities $ $ December 31, 2015 Available For Sale Amortized Fair Cost Value Due in one year or less $ $ Due from one year to five years Due from five years to ten years Due after ten years Mortgage-backed securities Collateralized mortgage obligations Asset-backed securities $ $ Proceeds from sales of investment securities available for sale and gross gains and losses for the six months ended June 30, 2016 and 2015 were as follows: Six Months Ended June 30, Six Months Ended June 30, 2016 2015 Proceeds from sales $ $ Gross realized gains Gross realized losses - Also included in gain on sale of investment securities in the accompanying condensed consolidated statements of income are gross gains of $12 from calls of investment securities for the six months ended June 30, 2016. There were no gross gains or losses from calls of investment securities for the six months ended June 30, 2015. There was a blanket floating lien on all securities to secure Federal Home Loan Bank advances as of June 30, 2016 and December 31, 2015. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2016 | |
Loans and Allowance for Loan Losses | |
Loans and Allowance for Loan Losses | 4. Loans and Allowance for Loan Losses Loans in the accompanying consolidated balance sheets are summarized as follows: June 30, December 31, 2016 2015 Real estate: Construction and land $ $ Farmland 1 - 4 family residential Multi-family residential Nonfarm nonresidential Commercial Consumer Deferred loan fees Allowance for loan losses $ $ Included in the net loan portfolio as of June 30, 2016 and December 31, 2015 is an accretable discount related to loans acquired within a business combination in the approximate amounts of $693 and $1,029 , 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, 2016 and December 31, 2015. 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, 2016 and December 31, 2015, are as follows : June 30, December 31, 2016 2015 Real estate: Construction and land $ — $ — Farmland — — 1 - 4 family residential Multi-family residential — — Nonfarm nonresidential — — Commercial Consumer $ $ During the six months ended June 30, 2016 and 2015, 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, 2016 and December 31, 2015 is as follows : June 30, 2016 Total 90 Days Past Due 30 to 59 60 to 89 90 Days Total Total Total and Still Days Days or Greater Past Due Current Loans Accruing Real estate: Construction and land $ — $ — $ — $ — $ $ $ — Farmland — — — — — 1 - 4 family residential — Multi-family residential — — — — — Nonfarm nonresidential — — — — — Commercial Consumer — — — $ $ $ $ $ $ $ December 31, 2015 Total 90 Days Past Due 30 to 59 60 to 89 90 Days Total Total Total and Still Days Days or Greater Past Due Current Loans Accruing Real estate: Construction and land $ $ — $ — $ $ $ $ — Farmland — — — — — 1 - 4 family residential — Multi-family residential — — — — — Nonfarm nonresidential — — — Commercial Consumer $ $ $ $ $ $ $ Loans past due 90 days and still accruing, increased from $84 as of December 31, 2015 to $5,600 as of June 30, 2016. This increase was primarily due to a single $5,400 loan that the Company believes is well-secured and in the process of collection. A plan is in place for the borrower to bring the note fully current and accelerate principal payments in advance of the original terms within the next 90 days. The remaining $200 increase consists of two loans. 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 loans and TDRs, at June 30, 2016 and December 31, 2015 are summarized in the following tables . June 30, 2016 Unpaid Recorded Recorded Average Contractual Investment Investment Total Recorded Principal with No With Recorded Related Investment Balance Allowance Allowance Investment Allowance YTD Real estate: Construction and land $ — $ — $ — $ — $ — $ — Farmland — — — — — — 1 - 4 family residential — — Multi-family residential — — — — — — Nonfarm nonresidential — — Commercial Consumer — Total $ $ $ $ $ $ December 31, 2015 Unpaid Recorded Recorded Average Contractual Investment Investment Total Recorded Principal with No With Recorded Related Investment Balance Allowance Allowance Investment Allowance YTD Real estate: Construction and land $ — $ — $ — $ — $ — $ Farmland — — — — — — 1 - 4 family residential — — Multi-family residential — — — — — — Nonfarm nonresidential — — Commercial Consumer Total $ $ $ $ $ $ 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, 2016 and 2015, 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 $587 and $1,727 as of June 30, 2016 and December 31, 2015, respectively . During the six months ended June 30, 2016, no loans were modified as TDRs. During the six months ended June 30, 2015 the terms of certain loans modified as TDRs were as follows: During the six months ended June 30, 2015 Post-Modification Outstanding Recorded Investment Extended Pre- Extended Maturity, Modification Maturity Restructured Outstanding Adjusted and Payments and Number Recorded Interest Extended Restructured Adjusted of Loans Investment Rate Maturity Payments Interest Rate Real estate loans: Construction and land — $ — $ — $ — $ — $ — Farmland — — — — — — 1 - 4 family residential — — — — — — Multi-family residential — — — — — — Nonfarm nonresidential — — — Commercial — — — Consumer — — — — — — Total $ $ — $ — $ $ Of the two loans restructured during the six months ended June 30, 2015 both loans were performing as agreed to the modified terms. No specific allowance for loan losses is recorded for loans that were modified as of June 30, 2015. There were no loans modified as a troubled debt restructured loan within the previous 12 months and for which there was a payment default during the six months ended June 30, 2015. Interest income recorded during the six months ended June 30, 2016 and 2015 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, 2016 or 2015. 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 about the risks of default and loss associated with the loan. The Company reviews the ratings on criticized credits monthly. Ratings are adjusted to reflect the degree of risk and loss that is felt to be inherent in each credit as of each monthly reporting period. All classified credits are evaluated for impairments. If impairment is determined to exist, a specific reserve is established. The Company’s methodology is structured so that specific reserves are increased in accordance with deterioration in credit quality (and a corresponding increase in risk and loss) or decreased in accordance with improvement in credit quality (and a corresponding decrease in risk and loss). Credits rated “special mention” show clear signs of financial weaknesses or deterioration in credit worthiness; however, such concerns are not so pronounced that the Company generally expects to experience significant loss within the short ‑term. Such credits typically maintain the ability to perform within standard credit terms, and credit exposure is not as prominent as credits rated more harshly. Credits rated substandard are those in which the normal repayment of principal and interest may be, or has been, jeopardized by reason of adverse trends or developments of a financial, managerial, economic or political nature, or important weaknesses which exist in 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, 2016 and December 31, 2015: June 30, 2016 Special Pass Mention Substandard Doubtful Total Real estate: Construction and land $ $ $ — $ — $ Farmland — — — 1 - 4 family residential — Multi-family residential — — — Nonfarm nonresidential — — Commercial Consumer — — Total $ $ $ $ $ December 31, 2015 Special Pass Mention Substandard Doubtful Total Real estate: Construction and land $ $ — $ — $ — $ Farmland — — — 1 - 4 family residential — — Multi-family residential — — — Nonfarm nonresidential — Commercial Consumer — Total $ $ $ $ $ An analysis of the allowance for loan losses for the six months ended June 30, 2016 and 2015 and year ended December 31, 2015 is as follows : Six Months Ended Year Ended Six Months Ended June 30, 2016 December 31, 2015 June 30, 2015 Balance at beginning of year $ $ $ Provision charged to earnings Charge-offs Recoveries Net charge-offs Balance at end of year $ $ $ The allowance for loan losses as a percentage of total loans was 0.85% , 0.83% and 0.96% as of June 30, 2016, December 31, 2015, and June 30, 2015, 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, 2016 Real Estate Construction, Nonfarm Land and Non- Farmland Residential Residential Commercial Consumer Total Balance at beginning of period $ $ $ $ $ $ Provision (recapture) charged to earnings Charge-offs — — — Recoveries — — — Net charge-offs (recoveries) — — — Balance at end of period $ $ $ $ $ $ Period-end amount allocated to: Specific reserves: Impaired loans $ — $ — $ — $ $ $ Total specific reserves — — — General reserves Total $ $ $ $ $ $ For the Year Ended December 31, 2015 Real Estate Construction Nonfarm Land and Non- Farmland Residential Residential Commercial Consumer Total Balance at beginning of period $ $ $ $ $ $ Provision (recapture) charged to earnings Charge-offs — — Recoveries — — Net charge-offs (recoveries) — Balance at end of period $ $ $ $ $ $ Period-end amount allocated to: Specific reserves: Impaired loans $ — $ — $ — $ $ $ Total specific reserves — — — General reserves Total $ $ $ $ $ $ For the Six Months Ended June 30, 2015 Real Estate Construction, Nonfarm Land and Non- Farmland Residential Residential Commercial Consumer Total Balance at beginning of year $ $ $ $ $ $ Provision (recapture) charged to earnings Charge-offs — — Recoveries — — Net charge-offs (recoveries) — — Balance at end of year $ $ $ $ $ $ Period-end amount allocated to: Specific reserves: Impaired loans $ — $ — $ — $ $ $ Total specific reserves — — — General reserves Total $ $ $ $ $ $ The Company’s recorded investment in loans as of June 30, 2016 and December 31, 2015 related to the balance in the allowance for loan losses on the basis of the Company’s impairment methodology is as follows : June 30, 2016 Real Estate Construction Nonfarm Land and Non- Farmland Residential Residential Commercial Consumer Total Loans individually evaluated for impairment $ $ — $ $ $ $ Loans collectively evaluated for impairment Total $ $ $ $ $ $ December 31, 2015 Real Estate Construction Nonfarm Land and Non- Farmland Residential Residential Commercial Consumer Total Loans individually evaluated for impairment $ — $ $ $ $ $ Loans collectively evaluated for impairment Total $ $ $ $ $ $ The Company has acquired certain loans which experienced credit deterioration since origination (purchased credit impaired, or “PCI” loans). Accretion on PCI loans is based on estimated future cash flows, regardless of contractual maturity. Servicing Assets At June 30, 2016, the Company was servicing loans of approximately $25,213 . A summary of the changes in the related servicing assets are as follows: Six Months Ended June 30, 2016 2015 Balance at beginning of year $ $ — Increase from loan sales — Amortization charged to income — Balance at end of period $ $ — The estimated fair value of the servicing assets approximated the carrying amount at June 30, 2016. No servicing assets were held by the Company prior to the acquisition of IBT Bancorp, Inc. (“IBT”). 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, 2016, 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, 2016. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Taxes | |
Income Taxes | 5. Income Taxes The Company’s estimated annual effective tax rate, before reporting the net impact of discrete items, was approximately 34.1% and 33.0% for the six months ended June 30, 2016 and 2015. For the three and six months ended June 30, 2016, the effective tax rate is below the statutory rate, primarily because of tax-exempt income generated from bank owned life insurance. The Company’s reported effective tax rates after including the net impact of discrete items for the six months ended June 30, 2016 and 2015 of 33.9% and 29.4% , respectively, in the accompanying condensed consolidated statements of income. The Company’s provision for income taxes for the six months ended June 30, 2015, was impacted by a net discrete tax benefit of $186 associated primarily with the recognition of deferred tax assets related to non-qualified stock options. 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 consolidated balance sheets as of June 30, 2016 is a current tax receivable of approximately $1,072 and a net deferred tax asset of approximately $1,332 in other assets. Included in the accompanying consolidated balance sheets as of December 31, 2015 is a current tax liability of $488 in accrued interest payable and other liabilities and a net deferred tax asset of $1,532 in other assets . |
Commitment and Contingencies
Commitment and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies | |
Commitments and Contingencies | 6. 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 $684 and $721 for the six months ended June 30, 2016 and 2015, respectively. |
Fair Value Disclosures
Fair Value Disclosures | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures | |
Fair Value Disclosures | 7. 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 yi eld 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, 2016 and December 31, 2015, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value : Fair Value Measurements Using Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value As of June 30, 2016 Investment securities available for sale $ — $ $ — $ As of December 31, 2015 Investment securities available for sale $ — $ $ — $ The Company records other real estate at fair value less estimated costs to sell at the date of foreclosure. After foreclosure, other real estate is carried at the lower of the initial carrying amount (fair value less estimated costs to sell or lease), or at the value determined by subsequent appraisals or internal valuations of the other real estate. There were no other real estate properties recorded at fair value at June 30, 2016 and December 31, 2015, respectively. There were no liabilities measured at fair value on a recurring basis as of June 30, 2016 or December 31, 2015. There were no transfers between Level 2 and Level 3 during the six months ended June 30, 2016 and 2015. 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 measure d at fair value on a non ‑ recurring basis as of June 30, 2016 and December 31, 2015, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Fair Value Measurements Using Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value As of June 30, 2016 Assets: Impaired loans $ — $ — $ $ Other real estate owned $ — $ — $ — $ — As of December 31, 2015 Assets: Impaired loans $ — $ — $ $ Other real estate owned $ — $ — $ — $ — At June 30, 2016, impaired loans had a carrying value of $1,579 , with $ 84 specific allowance for loan loss allocated. At December 31, 2015, impaired loans had a carrying value of $2, 3 79 , with $ 1 93 specific allowance for loan loss allocated. There were no liabilities measured at fair value on a non ‑recurring basis as of June 30, 2016 or December 31, 2015. For Level 3 financial assets measured at fair value as of June 30, 2016 and December 31, 2015, the significant unobservable inputs used in the fair value measurements were as follows : June 30, 2016 Valuation Unobservable Weighted Assets/Liabilities Fair Value Technique Input(s) Average Impaired loans $ Collateral Method Adjustments for selling costs % Other real estate owned $ — Collateral Method Adjustments for selling costs % December 31, 2015 Valuation Unobservable Weighted Assets/Liabilities Fair Value Technique Input(s) Average Impaired loans $ Collateral Method Adjustments for selling costs % Other real estate owned $ — Collateral Method Adjustments for selling costs % 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 amounts of cash and cash equivalents approximate their fair value. Loans and loans held for sale: For variable ‑rate loans that reprice frequently and have no significant changes in credit risk, fair values are based on carrying values. Fair values for certain mortgage loans (for example, 1-4 family residential), commercial real estate and commercial loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Servicing assets : The estimated fair value of the servicing assets approximated the carrying amount at 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, 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, 2016 and December 31, 2015 were as follows : June 30, December 31, 2016 2015 Carrying Fair Carrying Fair Amount Value Amount Value Financial assets: Level 1 inputs: Cash and cash equivalents $ $ $ $ Level 2 inputs: Investment securities $ $ $ $ Loans held for sale Accrued interest receivable Bank-owned life insurance Servicing asset Non-marketable equity securities Level 3 inputs: Loans, net Financial liabilities: Level 2 inputs: Deposits $ $ $ $ Advances from FHLB Accrued interest payable Junior subordinated debentures Subordinated notes |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk | 6 Months Ended |
Jun. 30, 2016 | |
Financial Instruments with Off-Balance Sheet Risk Disclosure [Abstract] | |
Financial Instruments with Off-Balance Sheet Risk | 8. 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, 2016 and December 31, 2015: June 30, December 31, 2016 2015 Commitments to extend credit $ $ Standby and commercial letters of credit $ $ 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, 2016 | |
Employee Benefits | |
Employee Benefits | 9. 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 contribution s. No matching contributions to the Plan were made for the six months ended June 30, 2016 and 2015. 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 common stock of the Company. The ESOP debt is secured by shares of the Company. The loan will be repaid from contributions to the ESOP from the Company. As the debt is repaid, shares are released from collateral and allocated to employees’ accounts. The shares pledged as collateral are reported as unearned ESOP shares in the 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, 2016 and 2015 was approximately $92 and $90 , respectively. The following is a summary of ESOP shares as of June 30, 2016 and December 31, 2015: June 30, December 31, 2016 2015 Allocated shares Unearned shares Total ESOP shares Fair value of unearned shares $ $ |
Stock and Incentive Plans
Stock and Incentive Plans | 6 Months Ended |
Jun. 30, 2016 | |
Stock and Incentive Plans | |
Stock and Incentive Plans | 10. Stock and Incentive Plans 2010 Stock Option and Equity Incentive Plan In 2010, the Company adopted the 2010 Stock Option and Equity Incentive Plan (the “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. The vesting of a performance ‑based stock option is contingent upon a change of control and the achievement of specific performance criteria or other objectives set at the grant date. With the adoption 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, 2016 and 2015, 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). For the six months ended June 30, 2016 and 2015, approximately $57 and $ 92 of stock compensation expense related to the 2010 Incentive Plan, respectively, was recognized in the accompanying condensed consolidated statements of income. A summary of option activity under the 2010 Incentive Plan for the six months ended June 30, 2016 and 2015, and changes during the period then ended is presented below: For Six Months Ended June 30, 2016 Nonperformance-based stock options Performance-based stock options Weighted Weighted Weighted Shares Weighted Average Shares Average Average Underlying Exercise Contractual Underlying Exercise Contractual Options Price Term Options Price Term Outstanding at beginning of year $ 5.56 years — $ — Granted during the period — — — — Forfeited during the period — — — — Cancelled during the period — — — — Exercised during the period — — — — Outstanding at the end of period $ 5.06 years — $ — Options exercisable at end of period $ 4.91 years — $ — Weighted average fair value of options granted during the period $ — $ — For Six Months Ended June 30, 2015 Nonperformance-based stock options Performance-based stock options Weighted Weighted Weighted Shares Weighted Average Shares Average Average Underlying Exercise Contractual Underlying Exercise Contractual Options Price Term Options Price Term Outstanding at beginning of year $ 6.58 years — $ — Granted during the period — — — — Forfeited during the period — — — — Exercised during the period — — — — Outstanding at the end of period $ 6.08 years — $ — Options exercisable at end of period $ 5.89 years — $ — Weighted average fair value of options granted during the period $ — $ — As of June 30, 2016, December 31, 2015 and June 30, 2015, the aggregate intrinsic value was $ 1,911, $1,971 and $1,692 , respectively , for outstanding non-performance ‑based stock options, $1,768 , $1,462 and $ 1,226 , respectively , for exercisable non-performance ‑based stock options. As of June 30, 2016, December 31, 2015 and June 30, 2015, there were no performance ‑based stock options outstanding or exercisable . As of June 30, 2016, December 31, 2015 and June 30, 2015, there was approximately $ 36, $51 and $143 respectively, of unrecognized compensation expense related to non-performance ‑based stock options. The unrecognized compensation expense at June 30, 2016 is expected to be recognized over the remaining weighted average requisite service period of 1.69 years. As of June 30, 2016, there was no unrecognized compensation expense related to performance-based options. A summary of the status of the Company’s restricted stock units under the 2010 incentive plan as of June 30, 2016 and 20 15, and changes during the six months then ended is as follows: 2016 2015 Weighted Weighted Average Average Grant Date Grant Date Shares Fair Value Shares Fair Value Nonvested at January 1, $ $ Granted during the period — — — — Vested during the period Forfeited during the period — — — — Nonvested at June 30, $ $ As of June 30, 2016, December 31, 2015 and June 30, 2015, there was $132 , $174 , and $ 230 respectively , of total unrecognized compensation expense related to nonvested restricted stock units. The unamortized compensation expense as of June 30, 2016 expected to be recognized over the remaining weighted average requisite service period of 1.40 years. 2014 Omnibus Plan In September of 2014, the Company adopted an omnibus incentive plan or the 2014 Omnibus Plan (“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 i s 1,000,000 . The Company granted 71,286 options and 56,250 restricted stock units to its employees and directors during the six months ended June 30, 2016 under the 2014 Omnibus Plan. Of the options awarded, 56,286 vest in equal annual installments over a three -year period from the grant date and the remainder vest in equal annual installments over a five -year period from the grant date. Of the restricted stock units awarded, 34,190 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 remaining 22,060 grants do not include market conditions and fully vest over the requisite service period ranging from one to five years. The Company granted 44,080 options and 25,474 restricted stock units to its employees and directors during the six months ended June 30, 2015 under the 2014 Omnibus Plan. The options vest equally over three years from the date of grant. The 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 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, 2016 2015 Dividend yield 0.00% 0.00% Expected life 5.0 to 6.5 years 6 years Expected volatility 35.23% to 37.55% 37.00% Risk-free interest rate 1.26% to 2.01% 1.81% 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, 2016 and 2015, and changes during the six months ended is as follows: 2016 2015 Nonperformance-based stock options Nonperformance-based stock options Weighted Weighted Shares Weighted Average Shares Weighted Average Underlying Exercise Contractual Underlying Exercise Contractual Options Price Term Options Price Term Outstanding at beginning of year $ 9.12 years — $ — Granted during the period Forfeited during the period — — — — Cancelled during the period — — — — Exercised during the period — — — — Outstanding at the end of period $ 9.16 years $ 9.52 years Options exercisable at end of period $ 8.51 years — $ — Weighted average fair value of options granted during the period $ $ As of June 30, 2016, December 31, 2015 and June 30, 2015 the aggregate intrinsic value was $ 97 , $97 and $34 for outstanding stock options under the 2014 Omnibus plan. As of June 30, 2016 the aggregate intrinsic value was $27 for exercisable stock options outstanding under the 2014 Omnibus plan, there were no exercisable stock options outstanding under the 2014 Omnibus Plan as of December 31, 2015 or June 30, 2015. A summary of the status of the Company’s restricted stock units under the 2014 Omnibus Plan as of June 30, 2016 and 2015, and changes during the six months ended is as follows: 2016 2015 Restricted stock units Restricted stock units Weighted Weighted Average Average Grant Date Grant Date Shares Fair Value Shares Fair Value Nonvested at January 1, $ $ Granted during the period Vested during the period — — Forfeited during the period — — — — Nonvested at June 30, $ $ For the six months ended June 30, 2016, compensation expense for awards granted under the 2014 Omnibus Plan was approximately $104 and $302 for options and restricted stock units, respectively. For the six months ended June 30, 2015, compensation expense for awards granted under the 2014 Omnibus Plan was approximately $36 and $145 for options and restricted stock units, respectively. As of June 30, 2016, December 31, 2015 and June 30, 2015 there was $507 , $187 and $183 of total unrecognized compensation expense related to options awarded under the 2014 Omnibus Plan, respectively. As of June 30, 2016, December 31, 2015 and June 30, 2015 there was $1,348 , $979 and $995 of total unrecognized compensation related to restricted stock units awarded under the 2014 Omnibus Plan, 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 2.67 and 2.98 years, respectively. |
Significant Concentrations of C
Significant Concentrations of Credit Risk | 6 Months Ended |
Jun. 30, 2016 | |
Significant Concentrations of Credit Risk | |
Significant Concentrations of Credit Risk | 11. 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 . |
Preferred Stock
Preferred Stock | 6 Months Ended |
Jun. 30, 2016 | |
Preferred Stock Disclosure [Abstract] | |
Preferred Stock | 12. Preferred Stock On August 25, 2011, the Company entered into a Small Business Lending Fund ‑Securities Purchase Agreement (the “SBLF Purchase Agreement”) with the Secretary of the Treasury (the “Treasury”), pursuant to which the Company sold 8,000 shares of the Company’s Senior Non ‑Cumulative Perpetual Preferred Stock, Series C (the “SBLF Preferred Stock”) to the Treasury for a purchase price of $8,000 . The issuance was pursuant to the Small Business Lending Fund (“SBLF”) program, a fund established under the Small Business Jobs Act of 2010 that was created to encourage lending to small businesses by providing capital to qualified community banks. The SBLF Preferred Stock qualifies as Tier 1 capital and pays non-cumulative dividends quarterly, on each January 1, April 1, July 1 and October 1. The dividend rate, as a percentage of the liquidation amount, can fluctuate on a quarterly basis during the first 10 quarters during which the SBLF Preferred Stock is outstanding, based upon changes in the level of “Qualified Small Business Lending” or “QBSL” (as defined in the SBLF Purchase Agreement) by the Bank. Based upon the increase in the Bank’s level of QBSL over the baseline level calculated under the terms of the SBLF Purchase Agreement, the dividend rate for the initial dividend period for the Company was set at 1% . For the tenth calendar quarter through 4.5 years after issuance, the dividend rate will be fixed and as of December 22, 2015 was set at 1% based upon the increase in QBSL as compared to the baseline. The SBLF Preferred Stock may be redeemed at any time at the Company’s option, at a redemption price of 100% of the liquidation amount of $1,000 per share plus accrued but unpaid dividends to the date of redemption for the current period, subject to the approval of its federal banking regulator. On December 22, 2015, the Company redeemed all 8,000 shares of SBLF Preferred Stock at its liquidation value of $1,000 per share plus accrued dividends for a total redemption amount of $8,018 . The redemption was approved by the Company’s primary federal regulator and was funded with the Company’s surplus capital. Immediately after the redemption, the Company’s capital ratios remained in excess of those levels necessary to be categorized as “well capitalized” under the regulatory framework for prompt corrective action. The redemption terminated the Company’s participation in the SBLF program. |
Capital Requirements and Restri
Capital Requirements and Restrictions on Retained Earnings | 6 Months Ended |
Jun. 30, 2016 | |
Capital Requirements and Restrictions on Retained Earnings Disclosure [Abstract] | |
Capital Requirements and Restrictions on Retained Earnings | 13. 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, 2016 and December 31, 2015 that the Company and the Bank met all capital adequacy requirements to which they were subject. As of June 30, 2016 and December 31, 2015, 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, 2016 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: To Be Well Capitalized Under For Capital Prompt Corrective Actual Adequacy Purposes Action Provisions Amount Ratio Amount Ratio Amount Ratio As of June 30, 2016 Total capital (to risk-weighted assets) Company $ % ≥ $ ≥ % ≥ n/a ≥ n/a Bank $ % ≥ $ ≥ % ≥ $ ≥ % Tier 1 capital (to risk-weighted assets) Company $ % ≥ $ ≥ % ≥ n/a ≥ n/a Bank $ % ≥ $ ≥ % ≥ $ ≥ % Common equity tier 1 to risk-weighted assets Company $ % ≥ $ ≥ % ≥ n/a ≥ n/a Bank $ % ≥ $ ≥ % ≥ $ ≥ % Tier 1 capital (to average assets) Company $ % ≥ $ ≥ % ≥ n/a ≥ n/a Bank $ % ≥ $ ≥ % ≥ $ ≥ % As of December 31, 2015 Total capital (to risk-weighted assets) Company $ % ≥ $ ≥ % ≥ n/a ≥ n/a Bank $ % ≥ $ ≥ % ≥ $ ≥ % Tier 1 capital (to risk-weighted assets) Company $ % ≥ $ ≥ % ≥ n/a ≥ n/a Bank $ % ≥ $ ≥ % ≥ $ ≥ % Common equity tier 1 to risk-weighted assets Company $ % ≥ $ ≥ % ≥ n/a ≥ n/a Bank $ % ≥ $ ≥ % ≥ $ ≥ % Tier 1 capital (to average assets) Company $ % ≥ $ ≥ % ≥ n/a ≥ n/a Bank $ % ≥ $ ≥ % ≥ $ ≥ % |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Summary of Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation The accompanying 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 consolidated financial position at June 30, 2016 and December 31, 2015, consolidated results of operations for the three months and six months ended June 30, 2016 and 2015, consolidated stockholders’ equity for the six months ended June 30, 2016 and 2015 and consolidated cash flows for the six months ended June 30, 2016 and 2015. 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, 2015 included within the Company’s Form 10-K as filed with the Securities and Exchange Commission on March 15, 2016. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the 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 For purposes of comparability, c ertain prior period amounts have been reclassified to conform to the 2016 financial statement presentation within noninterest income and noninterest expense . These reclassifications only changed the reporting categories and did not affect the consolidated results of operations or consolidated financial position. |
Earnings Per Share | Earnings Per Share Earnings per share (“EPS”) are based upon the weighted ‑average shares outstanding. The table below sets forth the reconciliation between weighted average shares used for calculating basic and diluted EPS for the three and six months ended June 30, 2016 and 2015 : Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Earnings (numerator) Net income $ $ $ $ Less: preferred stock dividends — — Net income allocated to common stockholders $ $ $ $ Shares (denominator) Weighted average shares outstanding for basic EPS (thousands) Dilutive effect of employee stock-based awards Adjusted weighted average shares outstanding Earnings per share: Basic $ $ $ $ Diluted $ $ $ $ For the six months ended June 30, 2016 and 2015, the Company excluded from diluted EPS weighted average shares of stock options representing the right to purchase 117,624 and 44,080 shares of the Company’s common stock, respectively, as the inclusion of those shares would have been anti-dilutive. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements 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. For public business entities, this ASU is effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods therein. The Company is in process of evaluating the impact of this pronouncement. 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 in process of evaluating the impact of this pronouncement. |
Summary of Significant Accoun23
Summary of Significant Accounting Policy (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Summary of Significant Accounting Policies | |
Schedule of reconciliation between weighted average shares used for calculating basic and diluted EPS | Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Earnings (numerator) Net income $ $ $ $ Less: preferred stock dividends — — Net income allocated to common stockholders $ $ $ $ Shares (denominator) Weighted average shares outstanding for basic EPS (thousands) Dilutive effect of employee stock-based awards Adjusted weighted average shares outstanding Earnings per share: Basic $ $ $ $ Diluted $ $ $ $ |
Supplemental Statement of Cas24
Supplemental Statement of Cash Flows (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of other supplemental cash flow information | Six Months Ended June 30, 2016 2015 Supplemental Disclosures of Cash Flow Information: Cash paid for interest $ $ Cash paid for income taxes $ $ Supplemental Disclosures of Non-Cash Flow Information: Issuance of stock to ESOP $ — $ Net issuance of common stock for vesting of restricted stock units to cover withholding $ $ Net foreclosure of other real estate owned and repossessed assets $ $ |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Investment Securities | |
Schedule of carrying amount and approximate fair values of available-for-sale securities | June 30, 2016 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available for Sale U.S. government agencies $ $ — $ $ Municipal securities Mortgage-backed securities Collateralized mortgage obligations Asset-backed securities — $ $ $ $ December 31, 2015 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available for Sale U.S. government agencies $ $ — $ $ Municipal securities Mortgage-backed securities Collateralized mortgage obligations Asset-backed securities — $ $ $ $ |
Schedule of investment securities that have been in a continuous unrealized loss position | June 30, 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 $ — $ — $ $ $ $ Municipal securities Mortgage-backed securities Collateralized mortgage obligations $ $ $ $ $ $ December 31, 2015 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 $ $ $ $ $ $ Municipal securities — — Mortgage-backed securities Collateralized mortgage obligations — — $ $ $ $ $ $ |
Schedule of amortized costs and estimated fair values of securities available for sale, by contractual maturity | June 30, 2016 Available For Sale Amortized Fair Cost Value Due in one year or less $ — $ — Due from one year to five years Due from five years to ten years Due after ten years Mortgage-backed securities Collateralized mortgage obligations Asset-backed securities $ $ December 31, 2015 Available For Sale Amortized Fair Cost Value Due in one year or less $ $ Due from one year to five years Due from five years to ten years Due after ten years Mortgage-backed securities Collateralized mortgage obligations Asset-backed securities $ $ |
Schedule of proceeds from sales of investment securities available for sale and gross gains and losses | Six Months Ended June 30, Six Months Ended June 30, 2016 2015 Proceeds from sales $ $ Gross realized gains Gross realized losses - |
Loans and Allowance for Loan 26
Loans and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Loans and Allowance for Loan Losses | |
Summary of loans | June 30, December 31, 2016 2015 Real estate: Construction and land $ $ Farmland 1 - 4 family residential Multi-family residential Nonfarm nonresidential Commercial Consumer Deferred loan fees Allowance for loan losses $ $ |
Schedule of non-accrual loans, excluding purchased credit impaired loans, aggregated by class of loans | June 30, December 31, 2016 2015 Real estate: Construction and land $ — $ — Farmland — — 1 - 4 family residential Multi-family residential — — Nonfarm nonresidential — — Commercial Consumer $ $ |
Schedule of age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | June 30, 2016 Total 90 Days Past Due 30 to 59 60 to 89 90 Days Total Total Total and Still Days Days or Greater Past Due Current Loans Accruing Real estate: Construction and land $ — $ — $ — $ — $ $ $ — Farmland — — — — — 1 - 4 family residential — Multi-family residential — — — — — Nonfarm nonresidential — — — — — Commercial Consumer — — — $ $ $ $ $ $ $ December 31, 2015 Total 90 Days Past Due 30 to 59 60 to 89 90 Days Total Total Total and Still Days Days or Greater Past Due Current Loans Accruing Real estate: Construction and land $ $ — $ — $ $ $ $ — Farmland — — — — — 1 - 4 family residential — Multi-family residential — — — — — Nonfarm nonresidential — — — Commercial Consumer $ $ $ $ $ $ $ Loans past due 90 days and still accruing, increased from $84 as of December 31, 2015 to $5,600 as of June 30, 2016. This increase was primarily due to a single $5,400 loan that the Company believes is well-secured and in the process of collection. A plan is in place for the borrower to bring the note fully current and accelerate principal payments in advance of the original terms within the next 90 days. The remaining $200 increase consists of two loans. 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. |
Summary of impaired loans, including purchased credit impaired loans and trouble debt restructurings | June 30, 2016 Unpaid Recorded Recorded Average Contractual Investment Investment Total Recorded Principal with No With Recorded Related Investment Balance Allowance Allowance Investment Allowance YTD Real estate: Construction and land $ — $ — $ — $ — $ — $ — Farmland — — — — — — 1 - 4 family residential — — Multi-family residential — — — — — — Nonfarm nonresidential — — Commercial Consumer — Total $ $ $ $ $ $ December 31, 2015 Unpaid Recorded Recorded Average Contractual Investment Investment Total Recorded Principal with No With Recorded Related Investment Balance Allowance Allowance Investment Allowance YTD Real estate: Construction and land $ — $ — $ — $ — $ — $ Farmland — — — — — — 1 - 4 family residential — — Multi-family residential — — — — — — Nonfarm nonresidential — — Commercial Consumer Total $ $ $ $ $ $ |
Schedule of terms of certain loans that were modified as troubled debt restructurings | During the six months ended June 30, 2015 Post-Modification Outstanding Recorded Investment Extended Pre- Extended Maturity, Modification Maturity Restructured Outstanding Adjusted and Payments and Number Recorded Interest Extended Restructured Adjusted of Loans Investment Rate Maturity Payments Interest Rate Real estate loans: Construction and land — $ — $ — $ — $ — $ — Farmland — — — — — — 1 - 4 family residential — — — — — — Multi-family residential — — — — — — Nonfarm nonresidential — — — Commercial — — — Consumer — — — — — — Total $ $ — $ — $ $ |
Summary of internal ratings of loans, including purchased credit impaired loans | June 30, 2016 Special Pass Mention Substandard Doubtful Total Real estate: Construction and land $ $ $ — $ — $ Farmland — — — 1 - 4 family residential — Multi-family residential — — — Nonfarm nonresidential — — Commercial Consumer — — Total $ $ $ $ $ December 31, 2015 Special Pass Mention Substandard Doubtful Total Real estate: Construction and land $ $ — $ — $ — $ Farmland — — — 1 - 4 family residential — — Multi-family residential — — — Nonfarm nonresidential — Commercial Consumer — Total $ $ $ $ $ |
Schedule of analysis of the allowance for loan losses | Six Months Ended Year Ended Six Months Ended June 30, 2016 December 31, 2015 June 30, 2015 Balance at beginning of year $ $ $ Provision charged to earnings Charge-offs Recoveries Net charge-offs Balance at end of year $ $ $ |
Summary of activity in the allowance for loan losses by class of loans | For the Six Months Ended June 30, 2016 Real Estate Construction, Nonfarm Land and Non- Farmland Residential Residential Commercial Consumer Total Balance at beginning of period $ $ $ $ $ $ Provision (recapture) charged to earnings Charge-offs — — — Recoveries — — — Net charge-offs (recoveries) — — — Balance at end of period $ $ $ $ $ $ Period-end amount allocated to: Specific reserves: Impaired loans $ — $ — $ — $ $ $ Total specific reserves — — — General reserves Total $ $ $ $ $ $ For the Year Ended December 31, 2015 Real Estate Construction Nonfarm Land and Non- Farmland Residential Residential Commercial Consumer Total Balance at beginning of period $ $ $ $ $ $ Provision (recapture) charged to earnings Charge-offs — — Recoveries — — Net charge-offs (recoveries) — Balance at end of period $ $ $ $ $ $ Period-end amount allocated to: Specific reserves: Impaired loans $ — $ — $ — $ $ $ Total specific reserves — — — General reserves Total $ $ $ $ $ $ For the Six Months Ended June 30, 2015 Real Estate Construction, Nonfarm Land and Non- Farmland Residential Residential Commercial Consumer Total Balance at beginning of year $ $ $ $ $ $ Provision (recapture) charged to earnings Charge-offs — — Recoveries — — Net charge-offs (recoveries) — — Balance at end of year $ $ $ $ $ $ Period-end amount allocated to: Specific reserves: Impaired loans $ — $ — $ — $ $ $ Total specific reserves — — — General reserves Total $ $ $ $ $ $ |
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 | June 30, 2016 Real Estate Construction Nonfarm Land and Non- Farmland Residential Residential Commercial Consumer Total Loans individually evaluated for impairment $ $ — $ $ $ $ Loans collectively evaluated for impairment Total $ $ $ $ $ $ December 31, 2015 Real Estate Construction Nonfarm Land and Non- Farmland Residential Residential Commercial Consumer Total Loans individually evaluated for impairment $ — $ $ $ $ $ Loans collectively evaluated for impairment Total $ $ $ $ $ $ |
Schedule of summary of changes in servicing assets | Six Months Ended June 30, 2016 2015 Balance at beginning of year $ $ — Increase from loan sales — Amortization charged to income — Balance at end of period $ $ — |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures | |
Schedule of assets measured at fair value on a recurring basis | Fair Value Measurements Using Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value As of June 30, 2016 Investment securities available for sale $ — $ $ — $ As of December 31, 2015 Investment securities available for sale $ — $ $ — $ |
Schedule of assets measured at fair value on a non-recurring basis | Fair Value Measurements Using Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value As of June 30, 2016 Assets: Impaired loans $ — $ — $ $ Other real estate owned $ — $ — $ — $ — As of December 31, 2015 Assets: Impaired loans $ — $ — $ $ Other real estate owned $ — $ — $ — $ — |
Schedule of significant unobservable inputs used in the fair value measurements | June 30, 2016 Valuation Unobservable Weighted Assets/Liabilities Fair Value Technique Input(s) Average Impaired loans $ Collateral Method Adjustments for selling costs % Other real estate owned $ — Collateral Method Adjustments for selling costs % December 31, 2015 Valuation Unobservable Weighted Assets/Liabilities Fair Value Technique Input(s) Average Impaired loans $ Collateral Method Adjustments for selling costs % Other real estate owned $ — Collateral Method Adjustments for selling costs % |
Schedule of estimated fair values and carrying values of all financial instruments | June 30, December 31, 2016 2015 Carrying Fair Carrying Fair Amount Value Amount Value Financial assets: Level 1 inputs: Cash and cash equivalents $ $ $ $ Level 2 inputs: Investment securities $ $ $ $ Loans held for sale Accrued interest receivable Bank-owned life insurance Servicing asset Non-marketable equity securities Level 3 inputs: Loans, net Financial liabilities: Level 2 inputs: Deposits $ $ $ $ Advances from FHLB Accrued interest payable Junior subordinated debentures Subordinated notes |
Financial Instruments with Of28
Financial Instruments with Off-Balance Sheet Risk (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Financial Instruments with Off-Balance Sheet Risk Disclosure [Abstract] | |
Schedule of the approximate amounts of financial instruments with off-balance sheet risk | June 30, December 31, 2016 2015 Commitments to extend credit $ $ Standby and commercial letters of credit $ $ |
Employee Benefits (Tables)
Employee Benefits (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Employee Benefits | |
Summary of ESOP shares | June 30, December 31, 2016 2015 Allocated shares Unearned shares Total ESOP shares Fair value of unearned shares $ $ |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
2010 Stock Option and Equity Incentive Plan | |
Summary of option activity | For Six Months Ended June 30, 2016 Nonperformance-based stock options Performance-based stock options Weighted Weighted Weighted Shares Weighted Average Shares Average Average Underlying Exercise Contractual Underlying Exercise Contractual Options Price Term Options Price Term Outstanding at beginning of year $ 5.56 years — $ — Granted during the period — — — — Forfeited during the period — — — — Cancelled during the period — — — — Exercised during the period — — — — Outstanding at the end of period $ 5.06 years — $ — Options exercisable at end of period $ 4.91 years — $ — Weighted average fair value of options granted during the period $ — $ — For Six Months Ended June 30, 2015 Nonperformance-based stock options Performance-based stock options Weighted Weighted Weighted Shares Weighted Average Shares Average Average Underlying Exercise Contractual Underlying Exercise Contractual Options Price Term Options Price Term Outstanding at beginning of year $ 6.58 years — $ — Granted during the period — — — — Forfeited during the period — — — — Exercised during the period — — — — Outstanding at the end of period $ 6.08 years — $ — Options exercisable at end of period $ 5.89 years — $ — Weighted average fair value of options granted during the period $ — $ — |
Summary of status of the Company's restricted shares or restricted stock units | 2016 2015 Weighted Weighted Average Average Grant Date Grant Date Shares Fair Value Shares Fair Value Nonvested at January 1, $ $ Granted during the period — — — — Vested during the period Forfeited during the period — — — — Nonvested at June 30, $ $ |
Omnibus Plan | |
Schedule of assumptions used to measure fair value of each option award estimated on grant date using Black-Scholes option-pricing model | For the Six Months Ended June 30, 2016 2015 Dividend yield 0.00% 0.00% Expected life 5.0 to 6.5 years 6 years Expected volatility 35.23% to 37.55% 37.00% Risk-free interest rate 1.26% to 2.01% 1.81% |
Summary of option activity | 2016 2015 Nonperformance-based stock options Nonperformance-based stock options Weighted Weighted Shares Weighted Average Shares Weighted Average Underlying Exercise Contractual Underlying Exercise Contractual Options Price Term Options Price Term Outstanding at beginning of year $ 9.12 years — $ — Granted during the period Forfeited during the period — — — — Cancelled during the period — — — — Exercised during the period — — — — Outstanding at the end of period $ 9.16 years $ 9.52 years Options exercisable at end of period $ 8.51 years — $ — Weighted average fair value of options granted during the period $ $ |
Summary of status of the Company's restricted shares or restricted stock units | 2016 2015 Restricted stock units Restricted stock units Weighted Weighted Average Average Grant Date Grant Date Shares Fair Value Shares Fair Value Nonvested at January 1, $ $ Granted during the period Vested during the period — — Forfeited during the period — — — — Nonvested at June 30, $ $ |
Capital Requirements and Rest31
Capital Requirements and Restrictions on Retained Earnings (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Capital Requirements and Restrictions on Retained Earnings Disclosure [Abstract] | |
Schedule of comparison of the Company's and Bank's actual capital amounts and ratios to required capital amounts and ratios | To Be Well Capitalized Under For Capital Prompt Corrective Actual Adequacy Purposes Action Provisions Amount Ratio Amount Ratio Amount Ratio As of June 30, 2016 Total capital (to risk-weighted assets) Company $ % ≥ $ ≥ % ≥ n/a ≥ n/a Bank $ % ≥ $ ≥ % ≥ $ ≥ % Tier 1 capital (to risk-weighted assets) Company $ % ≥ $ ≥ % ≥ n/a ≥ n/a Bank $ % ≥ $ ≥ % ≥ $ ≥ % Common equity tier 1 to risk-weighted assets Company $ % ≥ $ ≥ % ≥ n/a ≥ n/a Bank $ % ≥ $ ≥ % ≥ $ ≥ % Tier 1 capital (to average assets) Company $ % ≥ $ ≥ % ≥ n/a ≥ n/a Bank $ % ≥ $ ≥ % ≥ $ ≥ % As of December 31, 2015 Total capital (to risk-weighted assets) Company $ % ≥ $ ≥ % ≥ n/a ≥ n/a Bank $ % ≥ $ ≥ % ≥ $ ≥ % Tier 1 capital (to risk-weighted assets) Company $ % ≥ $ ≥ % ≥ n/a ≥ n/a Bank $ % ≥ $ ≥ % ≥ $ ≥ % Common equity tier 1 to risk-weighted assets Company $ % ≥ $ ≥ % ≥ n/a ≥ n/a Bank $ % ≥ $ ≥ % ≥ $ ≥ % Tier 1 capital (to average assets) Company $ % ≥ $ ≥ % ≥ n/a ≥ n/a Bank $ % ≥ $ ≥ % ≥ $ ≥ % |
Summary of Significant Accoun32
Summary of Significant Accounting Policies - Nature of Organization (Details) | 6 Months Ended |
Jun. 30, 2016item | |
Nature of Organization | |
Number of Branches | 10 |
Number of mortgage offices | 1 |
Segment Reporting: | |
Number of reportable segment | 1 |
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, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings (numerator) | ||||
Net income for common stockholders | $ 3,173 | $ 1,856 | $ 5,986 | $ 3,680 |
Less: preferred stock dividends | 20 | 40 | ||
Net income available to common stockholders | $ 3,173 | $ 1,836 | $ 5,986 | $ 3,640 |
Shares (denominator) | ||||
Weighted average shares outstanding for basic EPS (thousands) | 10,696 | 9,448 | 10,695 | 9,448 |
Dilutive effect of employee stock based awards and warrants | 298 | 261 | 283 | 256 |
Adjusted weighted average shares outstanding | 10,994 | 9,709 | 10,978 | 9,704 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.30 | $ 0.19 | $ 0.56 | $ 0.39 |
Diluted (in dollars per share) | $ 0.29 | $ 0.19 | $ 0.55 | $ 0.38 |
Summary of Significant Accoun34
Summary of Significant Accounting Policies - Antidilutive Securities (Details) - shares | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Performance-based stock options | ||
Earnings Per Share | ||
Excluded from diluted EPS weighted average shares | 117,624 | 44,080 |
Supplemental Statement of Cas35
Supplemental Statement of Cash Flows (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Supplemental Disclosures of Cash Flow Information: | ||
Cash paid for interest | $ 2,329 | $ 1,566 |
Cash paid for income taxes | 4,650 | 2,100 |
Supplemental Disclosures of Non Cash Flow Information: | ||
Issuance of stock to ESOP | 110 | |
Net issuance of common stock for vesting of restricted stock units to cover withholding | 73 | 96 |
Net foreclosure of other real estate owned | $ 114 | $ 493 |
Investment Securities - Carryin
Investment Securities - Carrying Amount and Fair Values (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Available for Sale securities | ||
Amortized Cost | $ 83,243 | $ 76,027 |
Gross Unrealized Gains | 587 | 242 |
Gross Unrealized Losses | 153 | 456 |
Fair Value | 83,677 | 75,813 |
U.S. government agencies | ||
Available for Sale securities | ||
Amortized Cost | 781 | 3,823 |
Gross Unrealized Losses | 16 | 36 |
Fair Value | 765 | 3,787 |
Municipal securities | ||
Available for Sale securities | ||
Amortized Cost | 11,130 | 6,738 |
Gross Unrealized Gains | 70 | 9 |
Gross Unrealized Losses | 23 | 52 |
Fair Value | 11,177 | 6,695 |
Mortgage-backed securities | ||
Available for Sale securities | ||
Amortized Cost | 44,981 | 46,180 |
Gross Unrealized Gains | 230 | 169 |
Gross Unrealized Losses | 81 | 292 |
Fair Value | 45,130 | 46,057 |
Collateralized mortgage obligations | ||
Available for Sale securities | ||
Amortized Cost | 25,518 | 18,379 |
Gross Unrealized Gains | 287 | 64 |
Gross Unrealized Losses | 19 | 59 |
Fair Value | 25,786 | 18,384 |
Asset-backed securities | ||
Available for Sale securities | ||
Amortized Cost | 833 | 907 |
Gross Unrealized Losses | 14 | 17 |
Fair Value | $ 819 | $ 890 |
Investment Securities - Unreali
Investment Securities - Unrealized Loss Position (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016USD ($)item | Dec. 31, 2015USD ($)item | |
Available for sale investment securities that have been in a continuous unrealized loss position | ||
Less Than 12 Months, Fair Value | $ 11,644 | $ 48,121 |
Less Than 12 Months, Unrealized Loss | 77 | 388 |
12 Months or More, Fair Value | 9,361 | 3,601 |
12 Months or More, Unrealized Loss | 76 | 68 |
Total Fair Value | 21,005 | 51,722 |
Total Unrealized Loss | $ 153 | $ 456 |
Number of investment positions in an unrealized loss position | item | 19 | 52 |
U.S. government agencies | ||
Available for sale investment securities that have been in a continuous unrealized loss position | ||
Less Than 12 Months, Fair Value | $ 2,978 | |
Less Than 12 Months, Unrealized Loss | 7 | |
12 Months or More, Fair Value | $ 765 | 809 |
12 Months or More, Unrealized Loss | 16 | 29 |
Total Fair Value | 765 | 3,787 |
Total Unrealized Loss | 16 | 36 |
Municipal securities | ||
Available for sale investment securities that have been in a continuous unrealized loss position | ||
Less Than 12 Months, Fair Value | 1,926 | 4,216 |
Less Than 12 Months, Unrealized Loss | 14 | 52 |
12 Months or More, Fair Value | 538 | |
12 Months or More, Unrealized Loss | 9 | |
Total Fair Value | 2,464 | 4,216 |
Total Unrealized Loss | 23 | 52 |
Mortgage-backed securities | ||
Available for sale investment securities that have been in a continuous unrealized loss position | ||
Less Than 12 Months, Fair Value | 8,179 | 32,255 |
Less Than 12 Months, Unrealized Loss | 41 | 253 |
12 Months or More, Fair Value | 6,978 | 2,792 |
12 Months or More, Unrealized Loss | 40 | 39 |
Total Fair Value | 15,157 | 35,047 |
Total Unrealized Loss | 81 | 292 |
Collateralized mortgage obligations | ||
Available for sale investment securities that have been in a continuous unrealized loss position | ||
Less Than 12 Months, Fair Value | 1,539 | 8,672 |
Less Than 12 Months, Unrealized Loss | 22 | 76 |
12 Months or More, Fair Value | 1,080 | |
12 Months or More, Unrealized Loss | 11 | |
Total Fair Value | 2,619 | 8,672 |
Total Unrealized Loss | $ 33 | $ 76 |
Investment Securities - Maturit
Investment Securities - Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Amortized costs of securities available for sale, by contractual maturity | ||
Due in one year or less | $ 996 | |
Due from one year to five years | $ 4,084 | 4,869 |
Due from five years to ten years | 3,587 | 428 |
Due after ten years | 4,240 | 4,268 |
Total investment securities available for sale, single maturity date | 11,911 | 10,561 |
Total investment securities available for sale, amortized cost basis | 83,243 | 76,027 |
Estimated fair values of securities available for sale, by contractual maturity | ||
Due in one year or less | 999 | |
Due from one year to five years | 4,131 | 4,851 |
Due from five years to ten years | 3,586 | 417 |
Due after ten years | 4,225 | 4,215 |
Total investment securities available for sale | 11,942 | 10,482 |
Total investment securities available for sale, fair value | 83,677 | 75,813 |
Mortgage-backed securities | ||
Amortized costs of securities available for sale, by contractual maturity | ||
Amortized Cost | 44,981 | 46,180 |
Estimated fair values of securities available for sale, by contractual maturity | ||
Fair Value | 45,130 | 46,057 |
Collateralized mortgage obligations | ||
Amortized costs of securities available for sale, by contractual maturity | ||
Amortized Cost | 25,518 | 18,379 |
Estimated fair values of securities available for sale, by contractual maturity | ||
Fair Value | 25,786 | 18,384 |
Asset-backed securities | ||
Amortized costs of securities available for sale, by contractual maturity | ||
Amortized Cost | 833 | 907 |
Estimated fair values of securities available for sale, by contractual maturity | ||
Fair Value | $ 819 | $ 890 |
Investment Securities - Proceed
Investment Securities - Proceeds and Gross Gains/Losses (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Proceeds from sales of investment securities available for sale and gross gains and losses | ||
Proceeds from sales | $ 8,378 | $ 3,778 |
Gross realized gains | 43 | 7 |
Gross realized losses | 39 | |
Calls of investment securities | ||
Proceeds from sales of investment securities available for sale and gross gains and losses | ||
Gross realized gains | $ 12 | $ 0 |
Loans and Allowance for Loan 40
Loans and Allowance for Loan Losses - Balance Sheet Summary (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Loans and Allowance for Loan Losses | ||||
Loans, gross | $ 928,000 | $ 820,567 | ||
Deferred loan fees | (51) | (62) | ||
Allowance for loan losses | (7,910) | (6,772) | $ (6,193) | $ (5,981) |
Loans, net | 920,039 | 813,733 | ||
Accretable discount related to loans acquired within a business combination | 693 | 1,029 | ||
Construction and land | ||||
Loans and Allowance for Loan Losses | ||||
Loans, gross | 154,251 | 126,422 | ||
Farmland | ||||
Loans and Allowance for Loan Losses | ||||
Loans, gross | 10,039 | 11,696 | ||
1 - 4 family residential | ||||
Loans and Allowance for Loan Losses | ||||
Loans, gross | 139,126 | 137,704 | ||
Multi-family residential | ||||
Loans and Allowance for Loan Losses | ||||
Loans, gross | 22,507 | 8,695 | ||
Nonfarm nonresidential | ||||
Loans and Allowance for Loan Losses | ||||
Loans, gross | 319,063 | 284,622 | ||
Allowance for loan losses | (2,586) | (2,189) | (2,064) | (1,890) |
Commercial | ||||
Loans and Allowance for Loan Losses | ||||
Loans, gross | 278,438 | 246,124 | ||
Allowance for loan losses | (2,716) | (2,324) | (2,027) | (2,092) |
Consumer | ||||
Loans and Allowance for Loan Losses | ||||
Loans, gross | 4,576 | 5,304 | ||
Allowance for loan losses | $ (27) | $ (31) | $ (53) | $ (64) |
Loans and Allowance for Loan 41
Loans and Allowance for Loan Losses - Nonaccrual (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Loans and Allowance for Loan Losses | ||
Non-accrual loans, excluding purchased credit impaired loans | $ 1,028 | $ 591 |
1 - 4 family residential | ||
Loans and Allowance for Loan Losses | ||
Non-accrual loans, excluding purchased credit impaired loans | 184 | 187 |
Commercial | ||
Loans and Allowance for Loan Losses | ||
Non-accrual loans, excluding purchased credit impaired loans | 828 | 383 |
Consumer | ||
Loans and Allowance for Loan Losses | ||
Non-accrual loans, excluding purchased credit impaired loans | $ 16 | $ 21 |
Loans and Allowance for Loan 42
Loans and Allowance for Loan Losses - Past Due (Details) $ in Thousands | Jun. 30, 2016USD ($)loan | Dec. 31, 2015USD ($) |
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | $ 7,055 | $ 2,152 |
Total Current | 920,945 | 818,415 |
Total Loans | 928,000 | 820,567 |
Total 90 Days Past Due and Still Accruing | 5,634 | 84 |
Well Secured Loan With Plan to Bring Note Fully Current and Accelerate Principal Payments in Advance of Original Terms [Member] | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total 90 Days Past Due and Still Accruing | 5,400 | |
Well Secured Loan With Plan to Bring Note Fully Current [Member] | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total 90 Days Past Due and Still Accruing | $ 200 | |
Number of loans | loan | 2 | |
30 to 59 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | $ 559 | 1,109 |
60 to 89 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 556 | 696 |
90 Days or Greater | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 5,940 | 347 |
Construction and land | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 3 | |
Total Current | 154,251 | 126,419 |
Total Loans | 154,251 | 126,422 |
Construction and land | 30 to 59 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 3 | |
Farmland | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Current | 10,039 | 11,696 |
Total Loans | 10,039 | 11,696 |
1 - 4 family residential | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 727 | 840 |
Total Current | 138,399 | 136,864 |
Total Loans | 139,126 | 137,704 |
Total 90 Days Past Due and Still Accruing | 211 | |
1 - 4 family residential | 30 to 59 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 345 | 215 |
1 - 4 family residential | 60 to 89 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 438 | |
1 - 4 family residential | 90 Days or Greater | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 382 | 187 |
Multi-family residential | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Current | 22,507 | 8,695 |
Total Loans | 22,507 | 8,695 |
Nonfarm nonresidential | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 175 | |
Total Current | 319,063 | 284,447 |
Total Loans | 319,063 | 284,622 |
Nonfarm nonresidential | 60 to 89 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 175 | |
Commercial | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 6,324 | 1,123 |
Total Current | 272,114 | 245,001 |
Total Loans | 278,438 | 246,124 |
Total 90 Days Past Due and Still Accruing | 5,423 | 83 |
Commercial | 30 to 59 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 210 | 883 |
Commercial | 60 to 89 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 556 | 81 |
Commercial | 90 Days or Greater | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 5,558 | 159 |
Consumer | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 4 | 11 |
Total Current | 4,572 | 5,293 |
Total Loans | 4,576 | 5,304 |
Total 90 Days Past Due and Still Accruing | 1 | |
Consumer | 30 to 59 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | $ 4 | 8 |
Consumer | 60 to 89 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 2 | |
Consumer | 90 Days or Greater | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | $ 1 |
Loans and Allowance for Loan 43
Loans and Allowance for Loan Losses - Imparied Loans (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Impaired Loans | ||
Unpaid Contractual Principal Balance | $ 1,579 | $ 2,379 |
Recorded Investment with No Allowance | 1,326 | 2,011 |
Recorded Investment with Allowance | 253 | 368 |
Total Recorded Investment | 1,579 | 2,379 |
Related Allowance | 84 | 193 |
Average Recorded Investment During Year | 1,229 | 1,907 |
Construction and land | ||
Impaired Loans | ||
Average Recorded Investment During Year | 10 | |
1 - 4 family residential | ||
Impaired Loans | ||
Unpaid Contractual Principal Balance | 349 | 353 |
Recorded Investment with No Allowance | 349 | 353 |
Total Recorded Investment | 349 | 353 |
Average Recorded Investment During Year | 350 | 191 |
Nonfarm nonresidential | ||
Impaired Loans | ||
Unpaid Contractual Principal Balance | 386 | 1,265 |
Recorded Investment with No Allowance | 386 | 1,265 |
Total Recorded Investment | 386 | 1,265 |
Average Recorded Investment During Year | 496 | 1,146 |
Commercial | ||
Impaired Loans | ||
Unpaid Contractual Principal Balance | 828 | 740 |
Recorded Investment with No Allowance | 591 | 390 |
Recorded Investment with Allowance | 237 | 350 |
Total Recorded Investment | 828 | 740 |
Related Allowance | 80 | 186 |
Average Recorded Investment During Year | 365 | 533 |
Consumer | ||
Impaired Loans | ||
Unpaid Contractual Principal Balance | 16 | 21 |
Recorded Investment with No Allowance | 3 | |
Recorded Investment with Allowance | 16 | 18 |
Total Recorded Investment | 16 | 21 |
Related Allowance | 4 | 7 |
Average Recorded Investment During Year | $ 18 | $ 27 |
Loans and Allowance for Loan 44
Loans and Allowance for Loan Losses - Trouble Debt Restructuring (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2016USD ($)item | Jun. 30, 2015USD ($)loan | Dec. 31, 2015USD ($) | |
Troubled Debt Restructuring | |||
Recorded investment in TDRs | $ 587 | $ 1,727 | |
Number of Loans | 0 | 2 | |
Pre-Modification Outstanding Recorded Investment | $ 667 | ||
Post-Modification Outstanding Recorded Investment | |||
Extended Maturity and Restructured Payments | 261 | ||
Extended Maturity, Restructured Payments and Adjusted Interest Rate | $ 395 | ||
Nonfarm nonresidential | |||
Troubled Debt Restructuring | |||
Number of Loans | loan | 1 | ||
Pre-Modification Outstanding Recorded Investment | $ 399 | ||
Post-Modification Outstanding Recorded Investment | |||
Extended Maturity, Restructured Payments and Adjusted Interest Rate | $ 395 | ||
Commercial | |||
Troubled Debt Restructuring | |||
Number of Loans | loan | 1 | ||
Pre-Modification Outstanding Recorded Investment | $ 268 | ||
Post-Modification Outstanding Recorded Investment | |||
Extended Maturity and Restructured Payments | $ 261 |
Loans and Allowance for Loan 45
Loans and Allowance for Loan Losses - TDR's additional information (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($)loan | |
Loans and Allowance for Loan Losses | |
Number of loans restructured performing as agreed to modified terms | 2 |
Valuation allowance for loans restructured | $ | $ 0 |
Number of loans modified as a troubled debt restructured loan within previous 12 months and for which there was a payment default | 0 |
Loans and Allowance for Loan 46
Loans and Allowance for Loan Losses - Credit Quality Indicators (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Credit Quality Indicators | ||
Loans | $ 928,000 | $ 820,567 |
Pass | ||
Credit Quality Indicators | ||
Loans | 912,321 | 816,303 |
Special Mention | ||
Credit Quality Indicators | ||
Loans | 8,382 | 2,617 |
Substandard | ||
Credit Quality Indicators | ||
Loans | 7,282 | 1,571 |
Doubtful | ||
Credit Quality Indicators | ||
Loans | 15 | 76 |
Construction and land | ||
Credit Quality Indicators | ||
Loans | 154,251 | 126,422 |
Construction and land | Pass | ||
Credit Quality Indicators | ||
Loans | 153,619 | 126,422 |
Construction and land | Special Mention | ||
Credit Quality Indicators | ||
Loans | 632 | |
Farmland | ||
Credit Quality Indicators | ||
Loans | 10,039 | 11,696 |
Farmland | Pass | ||
Credit Quality Indicators | ||
Loans | 10,039 | 11,696 |
1 - 4 family residential | ||
Credit Quality Indicators | ||
Loans | 139,126 | 137,704 |
1 - 4 family residential | Pass | ||
Credit Quality Indicators | ||
Loans | 138,731 | 136,856 |
1 - 4 family residential | Special Mention | ||
Credit Quality Indicators | ||
Loans | 211 | |
1 - 4 family residential | Substandard | ||
Credit Quality Indicators | ||
Loans | 184 | 848 |
Multi-family residential | ||
Credit Quality Indicators | ||
Loans | 22,507 | 8,695 |
Multi-family residential | Pass | ||
Credit Quality Indicators | ||
Loans | 22,507 | 8,695 |
Nonfarm nonresidential | ||
Credit Quality Indicators | ||
Loans | 319,063 | 284,622 |
Nonfarm nonresidential | Pass | ||
Credit Quality Indicators | ||
Loans | 318,441 | 282,404 |
Nonfarm nonresidential | Special Mention | ||
Credit Quality Indicators | ||
Loans | 622 | 2,043 |
Nonfarm nonresidential | Substandard | ||
Credit Quality Indicators | ||
Loans | 175 | |
Commercial | ||
Credit Quality Indicators | ||
Loans | 278,438 | 246,124 |
Commercial | Pass | ||
Credit Quality Indicators | ||
Loans | 264,424 | 244,948 |
Commercial | Special Mention | ||
Credit Quality Indicators | ||
Loans | 6,917 | 573 |
Commercial | Substandard | ||
Credit Quality Indicators | ||
Loans | 7,082 | 527 |
Commercial | Doubtful | ||
Credit Quality Indicators | ||
Loans | 15 | 76 |
Consumer | ||
Credit Quality Indicators | ||
Loans | 4,576 | 5,304 |
Consumer | Pass | ||
Credit Quality Indicators | ||
Loans | 4,560 | 5,282 |
Consumer | Special Mention | ||
Credit Quality Indicators | ||
Loans | 1 | |
Consumer | Substandard | ||
Credit Quality Indicators | ||
Loans | $ 16 | $ 21 |
Loans and Allowance for Loan 47
Loans and Allowance for Loan Losses - Allowance (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Analysis of allowance for loan losses | ||||||||
Balance at beginning of year | $ 6,772 | $ 5,981 | $ 5,981 | |||||
Provision charged to earnings | $ 868 | $ 258 | 1,372 | 258 | 868 | |||
Charge-offs | (140) | (102) | (249) | (102) | (140) | |||
Recoveries | 63 | 56 | 15 | 56 | 63 | |||
Net charge-offs | (77) | (46) | (234) | (46) | (77) | |||
Balance at end of year | 6,772 | 6,193 | 7,910 | 6,193 | 6,772 | |||
Specific Reserves: | ||||||||
Impaired loans | $ 84 | $ 193 | $ 119 | |||||
Total specific reserves | 84 | 193 | 119 | |||||
General reserves | 7,826 | 6,579 | 6,074 | |||||
Total | 6,772 | 6,193 | 6,772 | 5,981 | 5,981 | $ 7,910 | $ 6,772 | $ 6,193 |
Allowance for loan losses (as a percent) | 0.85% | 0.83% | 0.96% | |||||
Construction land and Farmland | ||||||||
Analysis of allowance for loan losses | ||||||||
Balance at beginning of year | 1,104 | 769 | 769 | |||||
Provision charged to earnings | 383 | 93 | 286 | |||||
Charge-offs | (48) | (48) | ||||||
Net charge-offs | (48) | (48) | ||||||
Balance at end of year | 1,104 | 814 | 1,390 | 814 | 1,104 | |||
Specific Reserves: | ||||||||
General reserves | $ 1,390 | $ 1,104 | $ 814 | |||||
Total | 1,104 | 814 | 1,104 | 769 | 769 | 1,390 | 1,104 | 814 |
Residential | ||||||||
Analysis of allowance for loan losses | ||||||||
Balance at beginning of year | 1,124 | 1,166 | 1,166 | |||||
Provision charged to earnings | (42) | 69 | 67 | |||||
Balance at end of year | 1,124 | 1,235 | 1,191 | 1,235 | 1,124 | |||
Specific Reserves: | ||||||||
General reserves | 1,191 | 1,124 | 1,235 | |||||
Total | 1,124 | 1,235 | 1,124 | 1,166 | 1,166 | 1,191 | 1,124 | 1,235 |
Nonfarm nonresidential | ||||||||
Analysis of allowance for loan losses | ||||||||
Balance at beginning of year | 2,189 | 1,890 | 1,890 | |||||
Provision charged to earnings | 294 | 169 | 397 | |||||
Recoveries | 5 | 5 | ||||||
Net charge-offs | 5 | 5 | ||||||
Balance at end of year | 2,189 | 2,064 | 2,586 | 2,064 | 2,189 | |||
Specific Reserves: | ||||||||
General reserves | 2,586 | 2,189 | 2,064 | |||||
Total | 2,189 | 2,064 | 2,189 | 1,890 | 1,890 | 2,586 | 2,189 | 2,064 |
Commercial | ||||||||
Analysis of allowance for loan losses | ||||||||
Balance at beginning of year | 2,324 | 2,092 | 2,092 | |||||
Provision charged to earnings | 262 | (65) | 618 | |||||
Charge-offs | (87) | (50) | (240) | |||||
Recoveries | 57 | 50 | 14 | |||||
Net charge-offs | (30) | (226) | ||||||
Balance at end of year | 2,324 | 2,027 | 2,716 | 2,027 | 2,324 | |||
Specific Reserves: | ||||||||
Impaired loans | 80 | 186 | 109 | |||||
Total specific reserves | 80 | 186 | 109 | |||||
General reserves | 2,636 | 2,138 | 1,918 | |||||
Total | 2,324 | 2,027 | 2,324 | 2,092 | 2,092 | 2,716 | 2,324 | 2,027 |
Consumer | ||||||||
Analysis of allowance for loan losses | ||||||||
Balance at beginning of year | 31 | 64 | 64 | |||||
Provision charged to earnings | (29) | (8) | 4 | |||||
Charge-offs | (5) | (4) | (9) | |||||
Recoveries | 1 | 1 | 1 | |||||
Net charge-offs | (4) | (3) | (8) | |||||
Balance at end of year | 31 | 53 | 27 | 53 | 31 | |||
Specific Reserves: | ||||||||
Impaired loans | 4 | 7 | 10 | |||||
Total specific reserves | 4 | 7 | 10 | |||||
General reserves | 23 | 24 | 43 | |||||
Total | $ 31 | $ 53 | $ 31 | $ 64 | $ 64 | $ 27 | $ 31 | $ 53 |
Loans and Allowance for Loan 48
Loans and Allowance for Loan Losses - Allowance, Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Allowance, impairment methodology | ||
Loans individually evaluated for impairment | $ 1,579 | $ 2,379 |
Loans collectively evaluated for impairment | 926,421 | 818,188 |
Total Loans | 928,000 | 820,567 |
Construction land and Farmland | ||
Allowance, impairment methodology | ||
Loans individually evaluated for impairment | 349 | |
Loans collectively evaluated for impairment | 163,941 | 138,118 |
Total Loans | 164,290 | 138,118 |
Residential | ||
Allowance, impairment methodology | ||
Loans individually evaluated for impairment | 353 | |
Loans collectively evaluated for impairment | 161,633 | 146,046 |
Total Loans | 161,633 | 146,399 |
Nonfarm nonresidential | ||
Allowance, impairment methodology | ||
Loans individually evaluated for impairment | 386 | 1,265 |
Loans collectively evaluated for impairment | 318,677 | 283,357 |
Total Loans | 319,063 | 284,622 |
Commercial | ||
Allowance, impairment methodology | ||
Loans individually evaluated for impairment | 828 | 740 |
Loans collectively evaluated for impairment | 277,610 | 245,384 |
Total Loans | 278,438 | 246,124 |
Consumer | ||
Allowance, impairment methodology | ||
Loans individually evaluated for impairment | 16 | 21 |
Loans collectively evaluated for impairment | 4,560 | 5,283 |
Total Loans | $ 4,576 | $ 5,304 |
Loans and Allowance for Loan 49
Loans and Allowance for Loan Losses - Servicing Assets (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Servicing asset | $ 0 | ||
Summary of changes in related servicing assets | |||
Increase in valuation allowance | $ 0 | ||
Valuation allowance recorded | 0 | ||
Proceeds from sale of loans | 28,823,000 | 26,581,000 | |
Gain on sale of loans | 1,282,000 | $ 431,000 | |
Interest receivable | 2,259,000 | $ 2,216,000 | |
Interest-only strip | |||
Summary of changes in related servicing assets | |||
Interest receivable | 0 | ||
IBT | |||
Servicing asset | 25,213,000 | ||
Summary of changes in related servicing assets | |||
Balance at beginning of year | 426,000 | ||
Increase from loan sales | 111,000 | ||
Amortization charged to income | (55,000) | ||
Balance at end of period | $ 482,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Components of Deferred Tax Assets and Liabilities [Abstract] | |||
Estimated Annual Effective Tax Rate | 34.1 | 33 | |
Effective tax rate (as a percent) | 33.90% | 29.40% | |
Discrete tax credit related to non-qualified stock options | $ 186 | ||
Current tax receivable | $ 1,072 | ||
Net deferred tax asset | $ 1,532 | ||
Other assets. | |||
Components of Deferred Tax Assets and Liabilities [Abstract] | |||
Net deferred tax asset | $ 1,332 | ||
Interest Payable and Other Liabilities [Member] | |||
Components of Deferred Tax Assets and Liabilities [Abstract] | |||
Current tax liability | $ 488 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Operating Leases | ||
Rental expense on operating lease | $ 684 | $ 721 |
Fair Value Disclosures - Recurr
Fair Value Disclosures - Recurring Basis (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Assets measured at fair value | |||
Investment securities available for sale | $ 83,677 | $ 75,813 | |
Recurring | |||
Assets measured at fair value | |||
Investment securities available for sale | 83,677 | 75,813 | |
Liabilities measured at fair value | 0 | 0 | |
Transfer of assets from Level 2 to Level 3 | 0 | $ 0 | |
Transfer of assets from Level 3 to Level 2 | 0 | $ 0 | |
Recurring | Level 2 | |||
Assets measured at fair value | |||
Investment securities available for sale | $ 83,677 | $ 75,813 |
Fair Value Disclosures - Non-re
Fair Value Disclosures - Non-recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Assets measured at fair value | ||
Impaired loans, carrying value | $ 1,579 | $ 2,379 |
Impaired loans, specific allowance | 84 | 193 |
Non-recurring | ||
Assets measured at fair value | ||
Impaired loans | 1,579 | 2,379 |
Liabilities measured at fair value | 0 | 0 |
Non-recurring | Level 3 | ||
Assets measured at fair value | ||
Impaired loans | $ 1,579 | $ 2,379 |
Fair Value Disclosures - Level
Fair Value Disclosures - Level 3 (Details) - Collateral Method - Level 3 - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Impaired loans | ||
Significant unobservable inputs used in the fair value measurements | ||
Fair Value | $ 1,579 | $ 2,379 |
Weighted Average (as a percent) | 8.00% | 8.00% |
Other real estate owned, net | ||
Significant unobservable inputs used in the fair value measurements | ||
Weighted Average (as a percent) | 8.00% | 8.00% |
Fair Value Disclosures - Financ
Fair Value Disclosures - Financial Instruments (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Estimated fair values and carrying values of all financial instruments | ||
Servicing Asset at Amortized Cost, Valuation Allowance | $ 0 | |
Maximum maturity period for Federal Home Loan Bank advances recorded at carrying value | 90 days | |
Financial assets: | ||
Investment securities | $ 83,677,000 | $ 75,813,000 |
Financial liabilities: | ||
Junior subordinated debentures | 3,093,000 | 3,093,000 |
Subordinated notes | 4,984,000 | 4,983,000 |
Level 1 | Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 127,244,000 | 71,551,000 |
Level 1 | Total Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 127,244,000 | 71,551,000 |
Level 2 | Carrying Amount | ||
Financial assets: | ||
Investment securities | 83,677,000 | 75,813,000 |
Loans held for sale | 4,793,000 | 2,831,000 |
Accrued interest receivable | 2,259,000 | 2,216,000 |
Bank-owned life insurance | 19,767,000 | 19,459,000 |
Servicing asset | 482,000 | 426,000 |
Non-marketable equity securities | 7,035,000 | 4,167,000 |
Financial liabilities: | ||
Deposits | 1,027,729,000 | 868,410,000 |
Advances from FHLB | 38,375,000 | 28,444,000 |
Accrued interest payable | 122,000 | 108,000 |
Junior subordinated debentures | 3,093,000 | 3,093,000 |
Subordinated notes | 4,984,000 | 4,983,000 |
Level 2 | Total Fair Value | ||
Financial assets: | ||
Investment securities | 83,677,000 | 75,813,000 |
Loans held for sale | 4,793,000 | 2,831,000 |
Accrued interest receivable | 2,259,000 | 2,216,000 |
Bank-owned life insurance | 19,767,000 | 19,459,000 |
Servicing asset | 482,000 | 426,000 |
Non-marketable equity securities | 7,035,000 | 4,167,000 |
Financial liabilities: | ||
Deposits | 1,010,171,000 | 844,966,000 |
Advances from FHLB | 39,526,000 | 28,826,000 |
Accrued interest payable | 122,000 | 108,000 |
Junior subordinated debentures | 3,093,000 | 3,093,000 |
Subordinated notes | 4,984,000 | 4,983,000 |
Level 3 | Carrying Amount | ||
Financial assets: | ||
Loans, net | 920,039,000 | 813,733,000 |
Level 3 | Total Fair Value | ||
Financial assets: | ||
Loans, net | $ 921,458,000 | $ 811,455,000 |
Financial Instruments with Of56
Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Financial instruments with off-balance sheet risk | ||
Total commitments | $ 233,175 | $ 238,628 |
Commitments to extend credit | ||
Financial instruments with off-balance sheet risk | ||
Total commitments | 231,342 | 236,678 |
Standby and commercial letters of credit | ||
Financial instruments with off-balance sheet risk | ||
Total commitments | $ 1,833 | $ 1,950 |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | ||
Jan. 31, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
ESOP | ||||
Matching contributions to 401(k) profit sharing Plan | $ 0 | $ 0 | ||
Summary of ESOP shares | ||||
Allocated shares | 35,047 | 35,047 | ||
Unearned shares | 27,993 | 27,993 | ||
Total ESOP shares | 63,040 | 63,040 | ||
Fair value of unearned shares | $ 448 | $ 454 | ||
ESOP | ||||
ESOP | ||||
Amount borrowed | $ 500 | |||
Common stock shares purchased by ESOP | 46,082 | |||
Compensation expense | $ 92 | $ 90 |
Stock and Incentive Plan - 2010
Stock and Incentive Plan - 2010 Plan (Details) - 2010 Stock Option and Equity Incentive Plan - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2010 | |
Stock and Incentive Plans | |||
Number of shares authorized | 1,000,000 | ||
Stock based compensation expense | $ 57 | $ 92 | |
Restricted shares | |||
Stock and Incentive Plans | |||
Number of shares authorized | 100,000 | ||
Term of continuous service for vesting awards | 4 years | ||
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 | ||
Nonperformance-based stock options | |||
Stock and Incentive Plans | |||
Number of shares awarded under stock options |
Stock and Incentive Plan - 2059
Stock and Incentive Plan - 2010 Plan - Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | |
2010 Stock Option and Equity Incentive Plan | ||||||
Additional disclosures | ||||||
Stock based compensation expense | $ 57 | $ 92 | ||||
Performance-based stock options | 2010 Stock Option and Equity Incentive Plan | ||||||
Additional disclosures | ||||||
Aggregate intrinsic value of outstanding stock options (in dollars) | $ 0 | $ 0 | $ 0 | |||
Aggregate intrinsic value of exercisable stock options (in dollars) | 0 | $ 0 | $ 0 | |||
Unrecognized compensation expense (in dollars) | $ 0 | |||||
Nonperformance-based stock options | ||||||
Weighted Average Contractual Term | ||||||
Options exercisable at end of period | 9 years 1 month 28 days | |||||
Nonperformance-based stock options | 2010 Stock Option and Equity Incentive Plan | ||||||
Shares Underlying Options activity | ||||||
Outstanding at beginning of period (in shares) | 325,500 | 352,500 | 352,500 | |||
Granted during the period (in shares) | ||||||
Forfeited during the period (in shares) | ||||||
Cancelled during the period (in shares) | ||||||
Exercised during the period (in shares) | ||||||
Outstanding at the end of period (in shares) | 325,500 | 352,500 | 325,500 | 352,500 | ||
Options exercisable at end of period (in shares) | 298,200 | 251,700 | ||||
Activity in weighted exercise price | ||||||
Outstanding at beginning of period (in dollars per share) | $ 10.15 | $ 10.14 | $ 10.14 | |||
Granted during the period (in dollars per share) | ||||||
Forfeited during the period (in dollars per share) | ||||||
Cancelled during the period (in dollars per share) | ||||||
Exercised during the period (in dollars per share) | ||||||
Outstanding at the end of period (in dollars per share) | 10.15 | 10.14 | $ 10.15 | $ 10.14 | ||
Options exercisable at end of period (in dollars per share) | 10.09 | 10.07 | ||||
Weighted average fair value of options granted during the period (in dollars per share) | ||||||
Weighted Average Contractual Term | ||||||
Outstanding at beginning of period | 5 years 22 days | 6 years 29 days | 5 years 6 months 22 days | 6 years 6 months 29 days | ||
Outstanding at the end of period | 5 years 22 days | 6 years 29 days | 5 years 6 months 22 days | 6 years 6 months 29 days | ||
Options exercisable at end of period | 4 years 10 months 28 days | 5 years 10 months 21 days | ||||
Additional disclosures | ||||||
Aggregate intrinsic value of outstanding stock options (in dollars) | $ 1,911 | $ 1,692 | $ 1,971 | |||
Aggregate intrinsic value of exercisable stock options (in dollars) | $ 1,768 | 1,226 | 1,462 | |||
Requisite service period to recognize compensation cost | 1 year 8 months 9 days | |||||
Unrecognized compensation expense (in dollars) | $ 36 | $ 143 | $ 51 |
Stock and Incentive Plan - 2060
Stock and Incentive Plan - 2010 Plan - Restricted Stock Units (Details) - Restricted shares - 2010 Stock Option and Equity Incentive Plan - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Activity in shares | |||
Nonvested at the beginning of the period (in shares) | 39,750 | 62,250 | |
Vested (in shares) | (6,000) | (20,000) | |
Nonvested at the end of the period (in shares) | 33,750 | 42,250 | |
Activity in weighted average grant date fair value | |||
Nonvested at the beginning of the period (in dollars per share) | $ 11.34 | $ 10.86 | |
Vested (in dollars per share) | 10 | 10 | |
Nonvested at the end of the period (in dollars per share) | $ 11.58 | $ 11.27 | |
Additional disclosures | |||
Unrecognized compensation expense (in dollars) | $ 132 | $ 230 | $ 174 |
Requisite service period to recognize compensation cost | 1 year 4 months 24 days |
Stock and Incentive Plan - Omni
Stock and Incentive Plan - Omnibus Plan (Details) - Omnibus Plan - shares | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Stock and Incentive Plans | ||
Number of shares authorized | 1,000,000 | |
Restricted stock units | ||
Stock and Incentive Plans | ||
Number of shares awarded | 56,250 | 25,474 |
Restricted stock units | Share-based Compensation Award, Tranche Three: Market condition based on the Company's total shareholder return relative to a market index | ||
Stock and Incentive Plans | ||
Number of shares awarded | 34,190 | |
Vesting period | 3 years | 3 years |
Restricted stock units | Share-based Compensation Award, Tranche Four: No market condition | ||
Stock and Incentive Plans | ||
Number of shares awarded | 22,060 | |
Restricted stock units | Share-based Compensation Award, Tranche Four: No market condition | Minimum | ||
Stock and Incentive Plans | ||
Vesting period | 1 year | |
Restricted stock units | Share-based Compensation Award, Tranche Four: No market condition | Maximum | ||
Stock and Incentive Plans | ||
Vesting period | 5 years | |
Stock option | ||
Stock and Incentive Plans | ||
Number of shares awarded under stock options | 71,286 | 44,080 |
Vesting period | 3 years | |
Stock option | Share-based Compensation Award, Tranche One | ||
Stock and Incentive Plans | ||
Number of shares awarded under stock options | 56,286 | |
Vesting period | 3 years | |
Stock option | Share-based Compensation Award, Tranche Two | ||
Stock and Incentive Plans | ||
Vesting period | 5 years |
Stock and Incentive Plan - Om62
Stock and Incentive Plan - Omnibus Plan Black Scholes Assumptions- (Details) - Omnibus Plan | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
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 life | 6 years | |
Expected volatility, minimum (as a percent) | 35.23% | |
Expected volatility, maximum (as a percent) | 37.55% | |
Expected volatility (as a percent) | 37.00% | |
Risk-free interest rate, minimum (as a percent) | 1.26% | |
Risk-free interest rate, maximum (as a percent) | 2.01% | |
Risk-free interest rate (as a percent) | 1.81% | |
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 | |
Maximum | ||
Assumptions used to measure fair value of each option award estimated on grant date using Black-Scholes option-pricing model | ||
Expected life | 6 years 6 months |
Stock and Incentive Plan - Om63
Stock and Incentive Plan - Omnibus Plan - Options (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 |
Nonperformance-based stock options | |||
Weighted Average Contractual Term | |||
Options exercisable at end of period | 9 years 1 month 28 days | ||
Omnibus Plan | Stock option | |||
Shares Underlying Options activity | |||
Granted during the period (in shares) | 71,286 | 44,080 | |
Omnibus Plan | Nonperformance-based stock options | |||
Shares Underlying Options activity | |||
Outstanding at beginning of period (in shares) | 52,080 | ||
Granted during the period (in shares) | 71,286 | 44,080 | |
Outstanding at the end of period (in shares) | 52,080 | 123,366 | 44,080 |
Options exercisable at end of period (in shares) | 14,693 | ||
Activity in weighted exercise price | |||
Outstanding at beginning of period (in dollars per share) | $ 14.35 | ||
Granted during the period (in dollars per share) | 15.88 | $ 14.17 | |
Outstanding at the end of period (in dollars per share) | $ 14.35 | 15.23 | 14.17 |
Options exercisable at end of period (in dollars per share) | 14.17 | ||
Weighted average fair value of options granted during the period (in dollars per share) | $ 6.09 | $ 5.46 | |
Weighted Average Contractual Term | |||
Outstanding at beginning of period | 9 years 1 month 13 days | 9 years 6 months 7 days | |
Outstanding at the end of period | 9 years 1 month 13 days | 9 years 6 months 7 days | |
Options exercisable at end of period | 8 years 6 months 4 days | ||
Additional disclosures | |||
Aggregate intrinsic value of outstanding stock options (in dollars) | $ 97 | $ 97 | $ 34 |
Aggregate intrinsic value of exercisable stock options (in dollars) | $ 0 | $ 27 | $ 0 |
Stock and Incentive Plan - Om64
Stock and Incentive Plan - Omnibus Plan - Restricted Stock Units (Details) - Omnibus Plan - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Restricted stock units | |||
Activity in shares | |||
Nonvested at the beginning of the period (in shares) | 96,393 | 82,903 | |
Granted (in shares) | 56,250 | 25,474 | |
Vested (in shares) | (13,943) | ||
Nonvested at the end of the period (in shares) | 138,700 | 108,377 | |
Activity in weighted average grant date fair value | |||
Nonvested at the beginning of the period (in dollars per share) | $ 12.27 | $ 13 | |
Granted (in dollars per share) | 11.91 | 9.45 | |
Vested (in dollars per share) | 14.92 | ||
Nonvested at the end of the period (in dollars per share) | $ 11.86 | $ 13.28 | |
Additional disclosures | |||
Stock based compensation expense | $ 302 | $ 145 | |
Unrecognized compensation expense (in dollars) | $ 1,348 | 995 | $ 979 |
Requisite service period to recognize compensation cost | 2 years 11 months 23 days | ||
Stock option | |||
Additional disclosures | |||
Stock based compensation expense | $ 104 | 36 | |
Unrecognized compensation expense (in dollars) | $ 507 | $ 183 | $ 187 |
Requisite service period to recognize compensation cost | 2 years 8 months 1 day |
Preferred Stock (Details)
Preferred Stock (Details) - SBLF Preferred Stock $ / shares in Units, $ in Thousands | Dec. 22, 2015USD ($)$ / sharesshares | Aug. 25, 2011USD ($)itemshares |
Preferred Stock | ||
Number of quarters during which dividend rate fluctuates | item | 10 | |
Redemption price as a percentage of liquidation amount plus accrued but unpaid dividends | 100.00% | |
Liquidation amount (in dollars per share) | $ / shares | $ 1,000 | |
Shares redeemed | shares | 8,000 | |
Payments for redemption of preferred stock | $ | $ 8,018 | |
SBLF Purchase Agreement | Initial dividend period | ||
Preferred Stock | ||
Dividend rate (as a percent) | 1.00% | |
SBLF Purchase Agreement | Dividend period for tenth calendar quarter through four and one half years after issuance | ||
Preferred Stock | ||
Dividend rate (as a percent) | 1.00% | |
Dividend period used in setting dividend rate | 4 years 6 months | |
SBLF Purchase Agreement | Secretary of the Treasury | ||
Preferred Stock | ||
Shares issued pursuant to SBLF program | shares | 8,000 | |
Shares issued pursuant to SBLF program, value | $ | $ 8,000 |
Capital Requirements and Rest66
Capital Requirements and Restrictions on Retained Earnings (Details) - USD ($) | Jan. 01, 2019 | Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Capital Requirements and Restrictions on Retained Earnings | |||||||
Capital conservation buffer | 0.625% | ||||||
Total capital (to risk weighted assets) | |||||||
Actual Amount | $ 126,328,000 | $ 119,208,000 | |||||
Actual Ratio (as a percent) | 13.23% | 14.25% | |||||
For Capital Adequacy Purposes Amount | $ 76,389,000 | $ 66,924,000 | |||||
For Capital Adequacy Purposes Ratio (as a percent) | 8.00% | 8.00% | |||||
Tier 1 capital (to risk weighted assets) | |||||||
Actual Amount | $ 113,434,000 | $ 107,453,000 | |||||
Actual Ratio (as a percent) | 11.88% | 12.85% | |||||
For Capital Adequacy Purposes Amount | $ 57,290,000 | $ 50,173,000 | |||||
For Capital Adequacy Purposes Ratio (as a percent) | 6.00% | 6.00% | |||||
Common equity tier 1 to risk weighted assets | |||||||
Actual Amount | $ 110,341,000 | $ 104,360,000 | |||||
Actual Ratio (as a percent) | 11.56 | 12.48 | |||||
For Capital Adequacy Purposes Amount | $ 42,953,000 | $ 37,630,000 | |||||
For Capital Adequacy Purposes Amount (as a percent) | 4.50% | 4.50% | |||||
Tier 1 capital (to average assets) | |||||||
Actual Amount | $ 113,434,000 | $ 107,453,000 | |||||
Actual Ratio (as a percent) | 10.21% | 10.75% | |||||
For Capital Adequacy Purposes Amount | $ 44,440,000 | $ 39,983,000 | |||||
For Capital Adequacy Purposes Ratio (as a percent) | 4.00% | 4.00% | |||||
Scenario, Forecast [Member] | |||||||
Capital Requirements and Restrictions on Retained Earnings | |||||||
Capital conservation buffer yearly increase | 0.625% | 0.625% | 0.625% | ||||
Capital conservation buffer desired rate | 2.50% | ||||||
Bank | |||||||
Total capital (to risk weighted assets) | |||||||
Actual Amount | $ 121,922,000 | $ 104,427,000 | |||||
Actual Ratio (as a percent) | 12.68% | 12.49% | |||||
For Capital Adequacy Purposes Amount | $ 76,922,000 | $ 66,887,000 | |||||
For Capital Adequacy Purposes Ratio (as a percent) | 8.00% | 8.00% | |||||
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 96,153,000 | $ 83,608,000 | |||||
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 | $ 114,012,000 | $ 97,655,000 | |||||
Actual Ratio (as a percent) | 11.86% | 11.68% | |||||
For Capital Adequacy Purposes Amount | $ 57,679,000 | $ 50,165,000 | |||||
For Capital Adequacy Purposes Ratio (as a percent) | 6.00% | 6.00% | |||||
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 76,905,000 | $ 66,887,000 | |||||
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 | $ 114,012,000 | $ 97,655,000 | |||||
Actual Ratio (as a percent) | 11.86 | 11.68 | |||||
For Capital Adequacy Purposes Amount | $ 43,259,000 | $ 37,624,000 | |||||
For Capital Adequacy Purposes Amount (as a percent) | 4.50% | 4.50% | |||||
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 62,485,000 | $ 54,346,000 | |||||
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 6.5 | 6.5 | |||||
Tier 1 capital (to average assets) | |||||||
Actual Amount | $ 114,012,000 | $ 97,655,000 | |||||
Actual Ratio (as a percent) | 10.27% | 9.78% | |||||
For Capital Adequacy Purposes Amount | $ 44,406,000 | $ 39,941,000 | |||||
For Capital Adequacy Purposes Ratio (as a percent) | 4.00% | 4.00% | |||||
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 55,507,000 | $ 49,926,000 | |||||
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 5.00% | 5.00% |