Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 19, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | First Business Financial Services, Inc. | |
Entity Central Index Key | 1,521,951 | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 8,793,341 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and due from banks | $ 20,099 | $ 17,059 |
Short-term investments | 20,194 | 35,480 |
Cash and cash equivalents | 40,293 | 52,539 |
Securities available-for-sale, at fair value | 134,995 | 126,005 |
Securities held-to-maturity, at amortized cost | 39,950 | 37,778 |
Loans held for sale | 4,712 | 2,194 |
Loans and leases receivable, net of allowance for loan and lease losses of $20,455 and $18,763, respectively | 1,578,152 | 1,482,832 |
Premises and equipment, net | 3,247 | 3,156 |
Foreclosed properties | 1,454 | 1,069 |
Bank-owned life insurance | 41,212 | 40,323 |
Federal Home Loan Bank stock, at cost | 6,890 | 5,670 |
Goodwill and other intangible assets | 12,132 | 12,652 |
Accrued interest receivable and other assets | 31,293 | 29,848 |
Total assets | 1,894,330 | 1,794,066 |
Liabilities and Stockholders’ Equity | ||
Deposits | 1,408,903 | 1,394,331 |
Federal Home Loan Bank advances and other borrowings | 281,430 | 207,898 |
Junior subordinated notes | 10,029 | 10,019 |
Accrued interest payable and other liabilities | 16,426 | 12,540 |
Total liabilities | 1,716,788 | 1,624,788 |
Stockholders’ equity: | ||
Preferred stock, $0.01 par value, 2,500,000 shares authorized, none issued or outstanding | 0 | 0 |
Common stock, $0.01 par value, 25,000,000 shares authorized, 9,064,784 and 9,021,985 shares issued, 8,793,941 and 8,763,539 shares outstanding at September 30, 2018 and December 31, 2017, respectively | 91 | 90 |
Additional paid-in capital | 79,369 | 78,620 |
Retained earnings | 107,460 | 98,906 |
Accumulated other comprehensive loss | (2,000) | (1,238) |
Treasury stock, 270,843 and 258,446 shares at September 30, 2018 and December 31, 2017, respectively, at cost | (7,378) | (7,100) |
Total stockholders’ equity | 177,542 | 169,278 |
Total liabilities and stockholders’ equity | $ 1,894,330 | $ 1,794,066 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Consolidated Balance Sheets - Parenthetical [Abstract] | ||
Allowance for loan and lease losses | $ 20,455 | $ 18,763 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 2,500,000 | 2,500,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 9,064,784 | 9,021,985 |
Common stock, shares outstanding | 8,793,941 | 8,763,539 |
Treasury stock, shares | 270,843 | 258,446 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Interest income | ||||
Loans and leases | $ 22,266 | $ 17,686 | $ 63,171 | $ 53,492 |
Securities | 1,002 | 771 | 2,796 | 2,326 |
Short-term investments | 295 | 177 | 787 | 488 |
Total interest income | 23,563 | 18,634 | 66,754 | 56,306 |
Interest expense | ||||
Deposits | 4,232 | 2,708 | 10,271 | 8,039 |
Federal Home Loan Bank advances and other borrowings | 1,957 | 763 | 5,424 | 2,185 |
Junior subordinated notes | 280 | 280 | 832 | 832 |
Total interest expense | 6,469 | 3,751 | 16,527 | 11,056 |
Net interest income | 17,094 | 14,883 | 50,227 | 45,250 |
Provision for loan and lease losses | (546) | 1,471 | 4,508 | 5,699 |
Net interest income after provision for loan and lease losses | 17,640 | 13,412 | 45,719 | 39,551 |
Non-interest income | ||||
Trust and investment service fees | 1,941 | 1,653 | 5,826 | 4,930 |
Gain on sale of Small Business Administration loans | 641 | 606 | 1,184 | 1,501 |
Service charges on deposits | 788 | 756 | 2,292 | 2,287 |
Loan fees | 459 | 391 | 1,375 | 1,525 |
Increase in cash surrender value of bank-owned life insurance | 301 | 314 | 890 | 940 |
Commercial loan swap fees | 306 | 418 | 1,009 | 866 |
Other non-interest income | 435 | 201 | 943 | 1,091 |
Total non-interest income | 4,871 | 4,339 | 13,519 | 13,140 |
Non-interest expense | ||||
Compensation | 9,819 | 7,645 | 28,006 | 24,710 |
Occupancy | 560 | 527 | 1,632 | 1,521 |
Professional fees | 1,027 | 995 | 2,990 | 3,046 |
Data processing | 512 | 592 | 1,748 | 1,810 |
Marketing | 593 | 594 | 1,518 | 1,546 |
Equipment | 403 | 285 | 1,089 | 868 |
Computer software | 814 | 715 | 2,235 | 2,037 |
FDIC insurance | 457 | 320 | 1,125 | 1,081 |
Collateral liquidation costs | 230 | 371 | 454 | 556 |
Net loss on foreclosed properties | 30 | 0 | 30 | 0 |
Impairment of tax credit investments | 113 | 112 | 554 | 338 |
SBA recourse provision | 314 | 1,315 | 118 | 2,095 |
Other non-interest expense | 874 | 760 | 2,621 | 2,404 |
Total non-interest expense | 15,746 | 14,231 | 44,120 | 42,012 |
Income before income tax expense | 6,765 | 3,520 | 15,118 | 10,679 |
Income tax expense | 1,464 | 936 | 2,879 | 2,812 |
Net income | $ 5,301 | $ 2,584 | $ 12,239 | $ 7,867 |
Earnings per common share | ||||
Basic | $ 0.60 | $ 0.30 | $ 1.40 | $ 0.90 |
Diluted | 0.60 | 0.30 | 1.40 | 0.90 |
Dividends declared per share | $ 0.14 | $ 0.13 | $ 0.42 | $ 0.39 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 5,301 | $ 2,584 | $ 12,239 | $ 7,867 |
Other comprehensive loss, before tax | ||||
Unrealized securities (losses) gains arising during the period | (634) | 172 | (2,524) | 199 |
Amortization of net unrealized losses transferred from available-for-sale | 18 | 25 | 54 | 79 |
Unrealized gains on interest rate swaps arising during the period | 382 | 0 | 1,412 | 0 |
Income tax benefit (expense) | 56 | (76) | 296 | (126) |
Total other comprehensive (loss) income | (178) | 121 | (762) | 152 |
Comprehensive income | $ 5,123 | $ 2,705 | $ 11,477 | $ 8,019 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Retained earnings | Accumulated Other Comprehensive (Loss) Income | Treasury stock |
Common shares outstanding at Dec. 31, 2016 | 8,715,856 | |||||
Beginning balance at Dec. 31, 2016 | $ 161,650 | $ 90 | $ 77,542 | $ 91,317 | $ (522) | $ (6,777) |
Net income | 7,867 | 7,867 | ||||
Other comprehensive income (loss) | 152 | 152 | ||||
Share-based compensation - restricted shares, shares issued | 57,106 | |||||
Share-based compensation - restricted shares | 811 | $ 0 | 811 | |||
Cash dividends ($0.42 per share during 2018 and $0.39 per share during 2017) | (3,399) | (3,399) | ||||
Treasury stock purchased, shares | (14,039) | |||||
Treasury stock purchased | (300) | (300) | ||||
Common shares outstanding at Sep. 30, 2017 | 8,758,923 | |||||
Ending balance at Sep. 30, 2017 | $ 166,781 | $ 90 | 78,353 | 95,785 | (370) | (7,077) |
Common shares outstanding at Dec. 31, 2017 | 8,763,539 | 8,763,539 | ||||
Beginning balance at Dec. 31, 2017 | $ 169,278 | $ 90 | 78,620 | 98,906 | (1,238) | (7,100) |
Net income | 12,239 | 12,239 | ||||
Other comprehensive income (loss) | (762) | (762) | ||||
Share-based compensation - restricted shares, shares issued | 42,799 | |||||
Share-based compensation - restricted shares | 750 | $ 1 | 749 | |||
Cash dividends ($0.42 per share during 2018 and $0.39 per share during 2017) | (3,685) | (3,685) | ||||
Treasury stock purchased, shares | (12,397) | |||||
Treasury stock purchased | $ (278) | (278) | ||||
Common shares outstanding at Sep. 30, 2018 | 8,793,941 | 8,793,941 | ||||
Ending balance at Sep. 30, 2018 | $ 177,542 | $ 91 | $ 79,369 | $ 107,460 | $ (2,000) | $ (7,378) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Common stock, cash dividends, per share, declared | $ 0.42 | $ 0.39 |
Retained earnings | ||
Common stock, cash dividends, per share, declared | $ 0.42 | $ 0.39 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Operating activities | ||
Net income | $ 12,239 | $ 7,867 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Deferred income taxes, net | 382 | (1,603) |
Impairment of tax credit investments | 554 | 338 |
Provision for loan and lease losses | 4,508 | 5,699 |
Depreciation, amortization and accretion, net | 1,099 | 1,148 |
Share-based compensation | 750 | 811 |
Increase in value of bank-owned life insurance policies | (890) | (940) |
Origination of loans for sale | (64,985) | (24,606) |
Sale of loans originated for sale | 63,651 | 27,244 |
Gain on sale of loans originated for sale | (1,184) | (1,527) |
Net loss on foreclosed properties | 30 | 0 |
Loan servicing right impairment valuation | 69 | 0 |
Excess tax benefit from share-based compensation | (43) | (59) |
Returns on investments in limited partnerships | 413 | 92 |
Net increase in accrued interest receivable and other assets | (1,242) | (1,759) |
Net increase in accrued interest payable and other liabilities | 4,945 | 6,739 |
Net cash provided by operating activities | 20,296 | 19,444 |
Investing activities | ||
Proceeds from maturities, redemptions and paydowns of available-for-sale securities | 26,719 | 29,802 |
Proceeds from maturities, redemptions and paydowns of held-to-maturity securities | 2,655 | 2,723 |
Proceeds from sale of available-for-sale securities | 0 | 11,702 |
Purchases of available-for-sale securities | (38,486) | (27,125) |
Purchases of held-to-maturity securities | (4,867) | (3,016) |
Net increase in loans and leases | (100,185) | (22,530) |
Investments in limited partnerships | 0 | (500) |
Returns of investments in limited partnerships | 316 | 0 |
Investment in historic development entities | (905) | (417) |
Investment in Federal Home Loan Bank stock | (8,118) | (12,223) |
Proceeds from the sale of Federal Home Loan Bank stock | 6,898 | 9,271 |
Purchases of leasehold improvements and equipment, net | (720) | (942) |
Net cash used in investing activities | (116,693) | (13,255) |
Financing activities | ||
Net increase (decrease) in deposits | 14,572 | (115,107) |
Repayment of Federal Home Loan Bank advances | (698,600) | (470,416) |
Proceeds from Federal Home Loan Bank advances | 772,100 | 580,415 |
Proceeds from Issuance of Subordinated Long-term Debt | 0 | 9,090 |
Repayment of subordinated notes payable | 0 | (7,889) |
Net increase (decrease) in other borrowed funds | 42 | (2,904) |
Cash dividends paid | (3,685) | (3,399) |
Purchase of treasury stock | (278) | (300) |
Net cash provided by (used in) financing activities | 84,151 | (10,510) |
Net decrease in cash and cash equivalents | (12,246) | (4,321) |
Cash and cash equivalents at the beginning of the period | 52,539 | 77,517 |
Cash and cash equivalents at the end of the period | 40,293 | 73,196 |
Cash paid during the period for: | ||
Interest paid on deposits and borrowings | 15,214 | 10,504 |
Income taxes paid | 882 | 490 |
Non-cash investing and financing activities: | ||
Transfer of loans from held-to-maturity to held-for-sale | 0 | 8,366 |
Transfer from loans to foreclosed properties | 415 | 0 |
Transfer from premises and equipment to foreclosed properties | $ 0 | $ 1,113 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | Nature of Operations and Summary of Significant Accounting Policies Nature of Operations The accounting and reporting practices of First Business Financial Services, Inc. (the “Corporation”), through our wholly owned subsidiary, First Business Bank (“FBB” or the “Bank”), have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). FBB operates as a commercial banking institution primarily in the Wisconsin and greater Kansas City markets. FBB also offers trust and investment services through First Business Trust & Investments (“FBTI”) and investment portfolio administrative services and asset/liability management services through First Business Consulting Services (“FBCS”), both divisions of FBB. The Bank provides a full range of financial services to businesses, business owners, executives, professionals and high net worth individuals. The Bank is subject to competition from other financial institutions and service providers and is also subject to state and federal regulations. FBB has the following wholly owned subsidiaries: First Business Capital Corp. (“FBCC”), First Madison Investment Corp. (“FMIC”), First Business Equipment Finance, LLC (“FBEF”), ABKC Real Estate, LLC (“ABKC”), Rimrock Road Investment Fund, LLC (“Rimrock Road”), BOC Investment, LLC (“BOC”), Mitchell Street Apartments Investment, LLC (“Mitchell Street”) and FBB Tax Credit Investment LLC (“FBB Tax Credit”). FMIC is located in and was formed under the laws of the state of Nevada. Basis of Presentation The accompanying unaudited Consolidated Financial Statements were prepared in accordance with GAAP and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Corporation’s Consolidated Financial Statements and footnotes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2017 . The unaudited Consolidated Financial Statements include the accounts of the Corporation and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. In accordance with the provisions of Accounting Standards Codification (“ASC”) Topic 810, the Corporation’s ownership interest in FBFS Statutory Trust II (“Trust II”) has not been consolidated into the financial statements. Management of the Corporation is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements as well as reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Material estimates that could significantly change in the near-term include the value of securities and interest rate swaps, level of the allowance for loan and lease losses, lease residuals, property under operating leases, goodwill, level of the Small Business Administration (“SBA”) recourse reserve and income taxes. The results of operations for the nine month period ended September 30, 2018 are not necessarily indicative of results that may be expected for any other interim period or the entire fiscal year ending December 31, 2018 . Certain amounts in prior periods may have been reclassified to conform to the current presentation. Subsequent events have been evaluated through the date of the issuance of the unaudited Consolidated Financial Statements. No significant subsequent events have occurred through this date requiring adjustment to the financial statements or disclosures. The Corporation has not changed its significant accounting and reporting policies from those disclosed in the Corporation’s Form 10-K for the year ended December 31, 2017 . Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” The ASU is a converged standard between the FASB and the International Accounting Standards Board that provides a single comprehensive revenue recognition model for all contracts with customers across transactions and industries. The primary objective of the ASU is revenue recognition that represents the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The Corporation adopted ASU 2014-09 and all subsequent amendments to the ASU (collectively, “ASC 606”) in the first quarter of 2018 with no material impact on its results of operations, financial position and liquidity. In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments (Subtopic 825-10).” The ASU amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments. This amendment supersedes the guidance to classify equity securities with readily determinable fair values into different categories, requires equity securities to be measured at fair value with changes in the fair value recognized through net income and simplifies the impairment assessment of equity investments without readily determinable fair values. The amendment requires public business entities that are required to disclose the fair value of financial instruments measured at amortized cost on the balance sheet to measure that fair value using the exit price notion. The amendment requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option. The Corporation adopted the accounting standard during the first quarter of 2018 and modified its fair value disclosure of financial instruments to reflect an exit price notion. The adoption of the standard did not have a material impact on the Corporation’s results of operations, financial position and liquidity. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” The ASU intends to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities and disclosing key information about leasing arrangements. The ASU will require lessees to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessees’ obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers . The new lease guidance simplifies the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) may apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may also elect to apply the amendments in the ASU through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The ASU is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The Corporation intends to adopt the accounting standard during the first quarter of 2019, as required. The Corporation leases office space, loan production offices and specialty financing production offices under noncancelable operating leases which expire on various dates through 2028. The Corporation also leases office equipment. The implementation efforts are ongoing, including the review of our leases and related accounting policies. Future minimum lease payments associated with 29 noncancelable operating leases as of September 30, 2018 was $10.6 million . The Corporation does not expect the accounting standard to have a material impact on its results of operations and liquidity. The estimated impact on its financial position continues to be refined, which may also change based on decisions to modify or renew leases prior to the implementation date. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments- Credit Losses (Topic 326).” The ASU replaces the incurred loss impairment methodology for recognizing credit losses with a methodology that reflects all expected credit losses. The ASU also requires consideration of a broader range of information to inform credit loss estimates, including such factors as past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures and any other financial asset not excluded from the scope that have the contractual right to receive cash. Entities will apply the amendments in the ASU through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The ASU is effective for public companies for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted as of the fiscal years beginning after December 15, 2018. The Corporation intends to adopt the accounting standard during the first quarter of 2020, as required, and is currently evaluating the impact on its results of operations, financial position and liquidity. A cross-functional team has been established and a third-party software solution has been obtained to assist with the implementation of the standard. Management is in the process of gathering necessary data and reviewing potential methods to calculate the expected credit losses. In June 2018, the FASB issued ASU No. 2018-07, “Compensation- Stock Compensation (Topic 718).” The ASU expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The ASU is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Corporation is in the process of evaluating the impact of this standard but does not expect this standard to have a material impact on its results of operations, financial position and liquidity. In August 2018, the FASB issued ASU No. 2018-15, “Intangibles-Goodwill and Other Internal-Use Software (Subtopic 350-40).” The ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). Implementation costs incurred in the application development stage are capitalized depending on the nature of the costs, while costs incurred during the preliminary project and post implementation stages are expensed as the activities are performed. The amendment also requires entities to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement and in the same income statement line item as the fees associated with the hosting element. The ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The Corporation is in the process of evaluating the impact of this standard but does not expect this standard to have a material impact on its results of operations, financial position and liquidity. |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings per Common Share Earnings per common share are computed using the two-class method. Basic earnings per common share are computed by dividing net income allocated to common shares by the weighted-average number of shares outstanding during the applicable period, excluding outstanding participating securities. Participating securities include unvested restricted shares. Unvested restricted shares are considered participating securities because holders of these securities receive non-forfeitable dividends, or dividend equivalents, at the same rate as holders of the Corporation’s common stock. Diluted earnings per share are computed by dividing net income allocated to common shares, adjusted for reallocation of undistributed earnings of unvested restricted shares, by the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of common stock equivalents using the treasury stock method. There were no anti-dilutive employee share-based awards for the three and nine month periods ended September 30, 2018 and 2017 . For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 (Dollars in Thousands, Except Per Share Data) Basic earnings per common share Net income $ 5,301 $ 2,584 $ 12,239 $ 7,867 Less: earnings allocated to participating securities 77 35 180 105 Basic earnings allocated to common stockholders $ 5,224 $ 2,549 $ 12,059 $ 7,762 Weighted-average common shares outstanding, excluding participating securities 8,650,057 8,621,311 8,634,890 8,606,080 Basic earnings per common share $ 0.60 $ 0.30 $ 1.40 $ 0.90 Diluted earnings per common share Earnings allocated to common stockholders $ 5,224 $ 2,549 $ 12,059 $ 7,762 Weighted-average diluted common shares outstanding, excluding participating securities 8,650,057 8,621,311 8,634,890 8,606,080 Diluted earnings per common share $ 0.60 $ 0.30 $ 1.40 $ 0.90 |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation The Corporation adopted the 2012 Equity Incentive Plan (the “Plan”) during the quarter ended June 30, 2012. The Plan is administered by the Compensation Committee of the Board of Directors of the Corporation and provides for the grant of equity ownership opportunities through incentive stock options and nonqualified stock options, restricted stock, restricted stock units, dividend equivalent units and any other type of award permitted by the Plan. As of September 30, 2018 , 169,036 shares were available for future grants under the Plan. Shares covered by awards that expire, terminate or lapse will again be available for the grant of awards under the Plan. The Corporation may issue new shares and shares from its treasury stock for shares delivered under the Plan. Restricted Stock Under the Plan, the Corporation may grant restricted stock, restricted stock units and other stock-based awards to plan participants, subject to forfeiture upon the occurrence of certain events until the dates specified in the participant’s award agreement. While restricted stock is subject to forfeiture, restricted stock participants may exercise full voting rights and will receive all dividends and other distributions paid with respect to the restricted shares. Restricted stock units do not have voting rights and are provided dividend equivalents. The restricted stock granted under the Plan is typically subject to a vesting period. Compensation expense is recognized over the requisite service period of generally four years for the entire award on a straight-line basis. Upon vesting of restricted stock, the benefit of tax deductions in excess of recognized compensation expense is reflected as an income tax benefit in the unaudited Consolidated Statements of Income. Restricted stock activity for the year ended December 31, 2017 and the nine months ended September 30, 2018 was as follows: Number of Restricted Shares/Units Weighted Average Grant-Date Fair Value Nonvested balance as of December 31, 2016 116,245 $ 21.13 Granted 71,130 21.67 Vested (48,550 ) 21.51 Forfeited (8,384 ) 21.65 Nonvested balance as of December 31, 2017 130,441 21.43 Granted 51,870 22.61 Vested (41,703 ) 20.91 Forfeited (9,071 ) 22.09 Nonvested balance as of September 30, 2018 131,537 $ 22.01 As of September 30, 2018 , the Corporation had $2.7 million of deferred unvested compensation expense, which the Corporation expects to recognize over a weighted-average period of approximately 2.99 years. Share-based compensation expense related to restricted stock included in the unaudited Consolidated Statements of Income was as follows: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 (In Thousands) Share-based compensation expense $ 244 $ 268 $ 750 $ 811 |
Securities
Securities | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities The amortized cost and fair value of securities available-for-sale and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income were as follows: As of September 30, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In Thousands) Available-for-sale: U.S. government agency obligations - government-sponsored enterprises $ 999 $ — $ (15 ) $ 984 Municipal obligations 5,842 — (113 ) 5,729 Collateralized mortgage obligations - government issued 20,811 54 (585 ) 20,280 Collateralized mortgage obligations - government-sponsored enterprises 108,738 10 (3,129 ) 105,619 Other securities 2,450 — (67 ) 2,383 $ 138,840 $ 64 $ (3,909 ) $ 134,995 As of December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In Thousands) Available-for-sale: U.S. government agency obligations - government-sponsored enterprises $ 999 $ 1 $ — $ 1,000 Municipal obligations 9,494 2 (82 ) 9,414 Collateralized mortgage obligations - government issued 22,313 149 (213 ) 22,249 Collateralized mortgage obligations - government-sponsored enterprises 91,480 24 (1,199 ) 90,305 Other securities 3,040 3 (6 ) 3,037 $ 127,326 $ 179 $ (1,500 ) $ 126,005 The amortized cost and fair value of securities held-to-maturity and the corresponding amounts of gross unrealized gains and losses were as follows: As of September 30, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In Thousands) Held-to-maturity: U.S. government agency obligations - government-sponsored enterprises $ 1,500 $ — $ (3 ) $ 1,497 Municipal obligations 21,135 20 (229 ) 20,926 Collateralized mortgage obligations - government issued 7,749 — (301 ) 7,448 Collateralized mortgage obligations - government-sponsored enterprises 9,566 — (307 ) 9,259 $ 39,950 $ 20 $ (840 ) $ 39,130 As of December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In Thousands) Held-to-maturity: U.S. government agency obligations - government-sponsored enterprises $ 1,499 $ — $ (9 ) $ 1,490 Municipal obligations 21,680 176 (34 ) 21,822 Collateralized mortgage obligations - government issued 9,072 1 (130 ) 8,943 Collateralized mortgage obligations - government-sponsored enterprises 5,527 — (86 ) 5,441 $ 37,778 $ 177 $ (259 ) $ 37,696 U.S. government agency obligations - government-sponsored enterprises represent securities issued by the Federal Home Loan Bank (“FHLB”), the Federal Home Loan Mortgage Corporation (“FHLMC”) and the Federal National Mortgage Association (“FNMA”). Municipal obligations include securities issued by various municipalities located primarily within the State of Wisconsin and are primarily general obligation bonds that are tax-exempt in nature. Collateralized mortgage obligations - government issued represent securities guaranteed by the Government National Mortgage Association. Collateralized mortgage obligations - government-sponsored enterprises include securities guaranteed by FHLMC and FNMA. Other securities represent certificates of deposit of insured banks and savings institutions with an original maturity greater than three months. No sales of available-for-sale securities occurred during the nine months ended September 30, 2018 and 14 sales of available-for-sale securities occurred during the nine months ended September 30, 2017 . At September 30, 2018 and December 31, 2017 , securities with a fair value of $2.4 million and $2.8 million , respectively, were pledged to secure interest rate swap contracts. The amortized cost and fair value of securities by contractual maturity at September 30, 2018 are shown below. Actual maturities may differ from contractual maturities because issuers have the right to call or prepay certain obligations with or without call or prepayment penalties. Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value (In Thousands) Due in one year or less $ 1,518 $ 1,515 $ 2,272 $ 2,268 Due in one year through five years 20,998 20,448 11,664 11,581 Due in five through ten years 30,083 29,269 19,697 19,166 Due in over ten years 86,241 83,763 6,317 6,115 $ 138,840 $ 134,995 $ 39,950 $ 39,130 The tables below show the Corporation’s gross unrealized losses and fair value of available-for-sale investments aggregated by investment category and length of time that individual investments were in a continuous loss position at September 30, 2018 and December 31, 2017 . At September 30, 2018 , the Corporation held 168 available-for-sale securities that were in an unrealized loss position. Such securities have not experienced credit rating downgrades; however, they have primarily declined in value due to the current interest rate environment. At September 30, 2018 , the Corporation held 87 available-for-sale securities that had been in a continuous unrealized loss position for twelve months or greater. The Corporation also has not specifically identified available-for-sale securities in a loss position that it intends to sell in the near term and does not believe that it will be required to sell any such securities. The Corporation reviews its securities on a quarterly basis to monitor its exposure to other-than-temporary impairment. Consideration is given to such factors as the length of time and extent to which the security has been in an unrealized loss position, changes in security ratings and an evaluation of the present value of expected future cash flows, if necessary. Based on the Corporation’s evaluation, it is expected that the Corporation will recover the entire amortized cost basis of each security. Accordingly, no other-than-temporary impairment was recorded in the unaudited Consolidated Statements of Income for the nine months ended September 30, 2018 and 2017 . A summary of unrealized loss information for securities available-for-sale, categorized by security type and length of time for which the security has been in a continuous unrealized loss position, follows: As of September 30, 2018 Less than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In Thousands) Available-for-sale: U.S. government agency obligations - government-sponsored enterprises $ 984 $ 15 $ — $ — $ 984 $ 15 Municipal obligations 1,536 39 3,020 74 4,556 113 Collateralized mortgage obligations - government issued 8,675 223 7,906 362 16,581 585 Collateralized mortgage obligations - government-sponsored enterprises 56,226 1,171 46,996 1,958 103,222 3,129 Other securities 2,139 66 244 1 2,383 67 $ 69,560 $ 1,514 $ 58,166 $ 2,395 $ 127,726 $ 3,909 As of December 31, 2017 Less than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In Thousands) Available-for-sale: Municipal obligations $ 6,132 $ 43 $ 2,755 $ 39 $ 8,887 $ 82 Collateralized mortgage obligations - government issued 7,104 40 6,715 173 13,819 213 Collateralized mortgage obligations - government-sponsored enterprises 59,256 476 28,004 723 87,260 1,199 Other securities 1,954 6 — — 1,954 6 $ 74,446 $ 565 $ 37,474 $ 935 $ 111,920 $ 1,500 The tables below show the Corporation’s gross unrealized losses and fair value of held-to-maturity investments, aggregated by investment category and length of time that individual investments were in a continuous loss position at September 30, 2018 and December 31, 2017 . At September 30, 2018 , the Corporation held 94 held-to-maturity securities that were in an unrealized loss position. Such securities have not experienced credit rating downgrades; however, they have primarily declined in value due to the current interest rate environment. There were 25 held-to-maturity securities that had been in a continuous loss position for twelve months or greater as of September 30, 2018 . It is expected that the Corporation will recover the entire amortized cost basis of each held-to-maturity security based upon an evaluation of aforementioned factors. Accordingly, no other-than-temporary impairment was recorded in the unaudited Consolidated Statements of Income for the nine months ended September 30, 2018 and 2017 . A summary of unrealized loss information for securities held-to-maturity, categorized by security type and length of time for which the security has been in a continuous unrealized loss position, follows: As of September 30, 2018 Less than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In Thousands) Held-to-maturity: U.S. government agency obligations - government-sponsored enterprises $ — $ — $ 1,497 $ 3 $ 1,497 $ 3 Municipal obligations 15,300 181 1,433 48 16,733 229 Collateralized mortgage obligations - government issued — — 7,448 301 7,448 301 Collateralized mortgage obligations - government-sponsored enterprises 4,723 120 4,536 187 9,259 307 $ 20,023 $ 301 $ 14,914 $ 539 $ 34,937 $ 840 As of December 31, 2017 Less than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In Thousands) Held-to-maturity: U.S. government agency obligations - government-sponsored enterprises $ — $ — $ 1,499 $ 9 $ 1,499 $ 9 Municipal obligations 3,723 27 259 7 3,982 34 Collateralized mortgage obligations - government issued 3,868 51 4,677 79 8,545 130 Collateralized mortgage obligations - government-sponsored enterprises — — 5,527 86 5,527 86 $ 7,591 $ 78 $ 11,962 $ 181 $ 19,553 $ 259 |
Loan and Lease Receivables, Imp
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses | Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses Loan and lease receivables consist of the following: September 30, December 31, (In Thousands) Commercial real estate: Commercial real estate — owner occupied $ 203,733 $ 200,387 Commercial real estate — non-owner occupied 487,842 470,236 Land development 45,009 40,154 Construction 132,271 125,157 Multi-family 174,664 136,978 1-4 family 35,729 44,976 Total commercial real estate 1,079,248 1,017,888 Commercial and industrial 457,932 429,002 Direct financing leases, net 31,090 30,787 Consumer and other: Home equity and second mortgages 8,388 7,262 Other 23,451 18,099 Total consumer and other 31,839 25,361 Total gross loans and leases receivable 1,600,109 1,503,038 Less: Allowance for loan and lease losses 20,455 18,763 Deferred loan fees 1,502 1,443 Loans and leases receivable, net $ 1,578,152 $ 1,482,832 The total amount of the Corporation’s ownership of SBA loans comprised of the following: September 30, December 31, (In Thousands) Retained, unguaranteed portions of sold SBA loans $ 26,640 $ 30,071 Other SBA loans (1) 20,183 22,254 Total SBA loans $ 46,823 $ 52,325 (1) Primarily consisted of SBA CAPLine, Express and impaired loans that were repurchased from the secondary market, all of which were not saleable as of September 30, 2018 and December 31, 2017 , respectively. As of September 30, 2018 and December 31, 2017 , $12.0 million and $11.1 million of SBA loans were considered impaired, respectively. Loans transferred to third parties consist of the guaranteed portions of SBA loans which the Corporation sold in the secondary market, participation interests in other originated loans and residential real estate loans. The total principal amount of the guaranteed portions of SBA loans sold during the three months ended September 30, 2018 and 2017 was $4.5 million and $6.3 million , respectively. The total principal amount of the guaranteed portions of SBA loans sold during the nine months ended September 30, 2018 and 2017 was $10.8 million and $15.5 million , respectively. Each of the transfers of these financial assets met the qualifications for sale accounting, and therefore all of the loans transferred during the three and nine months ended September 30, 2018 and 2017 have been derecognized in the unaudited Consolidated Financial Statements. The guaranteed portions of SBA loans were transferred at their fair value and the related gain was recognized upon the transfer as non-interest income in the unaudited Consolidated Financial Statements. The total outstanding balance of sold SBA loans at September 30, 2018 and December 31, 2017 was $91.1 million and $100.3 million , respectively. The total principal amount of transferred participation interests in other originated commercial loans during the three months ended September 30, 2018 and 2017 was $17.2 million and $15.9 million , respectively. The total principal amount of transferred participation interests in other originated commercial loans during the nine months ended September 30, 2018 and 2017 was $51.6 million and $36.6 million , respectively, all of which were treated as sales and derecognized under the applicable accounting guidance at the time of transfer. No gain or loss was recognized on participation interests in other originated loans as they were transferred at or near the date of loan origination and the payments received for servicing the portion of the loans participated represents adequate compensation. The total outstanding balance of these transferred loans at September 30, 2018 and December 31, 2017 was $125.7 million and $106.4 million , respectively. As of September 30, 2018 and December 31, 2017 , the total amount of the Corporation’s partial ownership of these transferred loans on the unaudited Consolidated Balance Sheets was $206.0 million and $181.7 million , respectively. No loans in this participation portfolio were considered impaired as of September 30, 2018 and December 31, 2017 . The Corporation does not share in the participant’s portion of any potential charge-offs. The total amount of loan participations purchased on the unaudited Consolidated Balance Sheets as of September 30, 2018 and December 31, 2017 was $590,000 and $650,000 , respectively. The following tables illustrate ending balances of the Corporation’s loan and lease portfolio, including impaired loans by class of receivable, and considering certain credit quality indicators: September 30, 2018 Category I II III IV Total (Dollars in Thousands) Commercial real estate: Commercial real estate — owner occupied $ 177,434 $ 4,925 $ 10,904 $ 10,470 $ 203,733 Commercial real estate — non-owner occupied 466,855 19,909 1,046 32 487,842 Land development 41,267 1,485 — 2,257 45,009 Construction 130,183 — 209 1,879 132,271 Multi-family 174,664 — — — 174,664 1-4 family 32,741 1,522 714 752 35,729 Total commercial real estate 1,023,144 27,841 12,873 15,390 1,079,248 Commercial and industrial 370,015 27,084 45,874 14,959 457,932 Direct financing leases, net 28,197 1,709 1,184 — 31,090 Consumer and other: Home equity and second mortgages 8,384 4 — — 8,388 Other 23,000 — — 451 23,451 Total consumer and other 31,384 4 — 451 31,839 Total gross loans and leases receivable $ 1,452,740 $ 56,638 $ 59,931 $ 30,800 $ 1,600,109 Category as a % of total portfolio 90.79 % 3.54 % 3.75 % 1.92 % 100.00 % December 31, 2017 Category I II III IV Total (Dollars in Thousands) Commercial real estate: Commercial real estate — owner occupied $ 166,018 $ 18,442 $ 8,850 $ 7,077 $ 200,387 Commercial real estate — non-owner occupied 441,246 27,854 1,102 34 470,236 Land development 36,470 1,057 — 2,627 40,154 Construction 121,528 757 — 2,872 125,157 Multi-family 136,978 — — — 136,978 1-4 family 34,598 7,735 1,220 1,423 44,976 Total commercial real estate 936,838 55,845 11,172 14,033 1,017,888 Commercial and industrial 341,875 25,344 49,453 12,330 429,002 Direct financing leases, net 28,866 342 1,579 — 30,787 Consumer and other: Home equity and second mortgages 7,250 8 — 4 7,262 Other 17,745 — — 354 18,099 Total consumer and other 24,995 8 — 358 25,361 Total gross loans and leases receivable $ 1,332,574 $ 81,539 $ 62,204 $ 26,721 $ 1,503,038 Category as a % of total portfolio 88.66 % 5.42 % 4.14 % 1.78 % 100.00 % Each credit is evaluated for proper risk rating upon origination, at the time of each subsequent renewal, upon receipt and evaluation of updated financial information from the Corporation’s borrowers or as other circumstances dictate. The Corporation uses a nine grade risk rating system to monitor the ongoing credit quality of its loans and leases. The risk rating grades follow a consistent definition and are then applied to specific loan types based on the nature of the loan. Each risk rating is subjective and, depending on the size and nature of the credit, subject to various levels of review and concurrence on the stated risk rating. In addition to its nine grade risk rating system, the Corporation groups loans into four loan and related risk categories which determine the level and nature of review by management. Category I — Loans and leases in this category are performing in accordance with the terms of the contract and generally exhibit no immediate concerns regarding the security and viability of the underlying collateral, financial stability of the borrower, integrity or strength of the borrowers’ management team or the industry in which the borrower operates. The Corporation monitors Category I loans and leases through payment performance, continued maintenance of its personal relationships with such borrowers and continued review of such borrowers’ compliance with the terms of their respective agreements. Category II — Loans and leases in this category are beginning to show signs of deterioration in one or more of the Corporation’s core underwriting criteria such as financial stability, management strength, industry trends or collateral values. Management will place credits in this category to allow for proactive monitoring and resolution with the borrower to possibly mitigate the area of concern and prevent further deterioration or risk of loss to the Corporation. Category II loans are considered performing but are monitored frequently by the assigned business development officer and by subcommittees of the Bank’s Loan Committee. Category III — Loans and leases in this category are identified by management as warranting special attention. However, the balance in this category is not intended to represent the amount of adversely classified assets held by the Bank. Category III loans and leases generally exhibit undesirable characteristics, such as evidence of adverse financial trends and conditions, managerial problems, deteriorating economic conditions within the related industry or evidence of adverse public filings and may exhibit collateral shortfall positions. Management continues to believe that it will collect all contractual principal and interest in accordance with the original terms of the contracts relating to the loans and leases in this category, and therefore Category III loans are considered performing with no specific reserves established for this category. Category III loans are monitored by management and subcommittees of the Bank’s Loan Committee on a monthly basis and the Bank’s Board of Directors at each of their regularly scheduled meetings. Category IV — Loans and leases in this category are considered to be impaired. Impaired loans and leases, with the exception of performing troubled debt restructurings, have been placed on non-accrual as management has determined that it is unlikely that the Bank will receive the contractual principal and interest in accordance with the original terms of the agreement. Impaired loans are individually evaluated to assess the need for the establishment of specific reserves or charge-offs. When analyzing the adequacy of collateral, the Corporation obtains external appraisals at least annually for impaired loans and leases. External appraisals are obtained from the Corporation’s approved appraiser listing and are independently reviewed to monitor the quality of such appraisals. To the extent a collateral shortfall position is present, a specific reserve or charge-off will be recorded to reflect the magnitude of the impairment. Loans and leases in this category are monitored by management and subcommittees of the Bank’s Loan Committee on a monthly basis and the Bank’s Board of Directors at each of their regularly scheduled meetings. Utilizing regulatory classification terminology, the Corporation identified $38.8 million and $32.7 million of loans and leases as Substandard as of September 30, 2018 and December 31, 2017 , respectively. No loans and leases were identified as Doubtful as of September 30, 2018 . The Corporation identified $4.7 million of loans and leases as Doubtful as of December 31, 2017 . The population of Substandard loans is a subset of Category III and Category IV loans. The delinquency aging of the loan and lease portfolio by class of receivable was as follows: September 30, 2018 30-59 60-89 Greater Total Past Due Current Total Loans and Leases (Dollars in Thousands) Accruing loans and leases Commercial real estate: Owner occupied $ — $ 115 $ — $ 115 $ 193,148 $ 193,263 Non-owner occupied 742 — — 742 487,068 487,810 Land development — — — — 42,752 42,752 Construction — — — — 130,392 130,392 Multi-family — — — — 174,664 174,664 1-4 family — — — — 35,161 35,161 Commercial and industrial 1,944 — — 1,944 441,032 442,976 Direct financing leases, net — — — — 31,090 31,090 Consumer and other: Home equity and second mortgages — — — — 8,388 8,388 Other — — — — 23,000 23,000 Total 2,686 115 — 2,801 1,566,695 1,569,496 Non-accruing loans and leases Commercial real estate: Owner occupied 1,144 — 1,522 2,666 7,804 10,470 Non-owner occupied — — 32 32 — 32 Land development — — 121 121 2,136 2,257 Construction — — 1,879 1,879 — 1,879 Multi-family — — — — — — 1-4 family — — 529 529 39 568 Commercial and industrial 2,364 43 7,770 10,177 4,779 14,956 Direct financing leases, net — — — — — — Consumer and other: Home equity and second mortgages — — — — — — Other — — 291 291 160 451 Total 3,508 43 12,144 15,695 14,918 — 30,613 Total loans and leases Commercial real estate: Owner occupied 1,144 115 1,522 2,781 200,952 203,733 Non-owner occupied 742 — 32 774 487,068 487,842 Land development — — 121 121 44,888 45,009 Construction — — 1,879 1,879 130,392 132,271 Multi-family — — — — 174,664 174,664 1-4 family — — 529 529 35,200 35,729 Commercial and industrial 4,308 43 7,770 12,121 445,811 457,932 Direct financing leases, net — — — — 31,090 31,090 Consumer and other: Home equity and second mortgages — — — — 8,388 8,388 Other — — 291 291 23,160 23,451 Total $ 6,194 $ 158 $ 12,144 $ 18,496 $ 1,581,613 $ 1,600,109 Percent of portfolio 0.39 % 0.01 % 0.76 % 1.16 % 98.84 % 100.00 % December 31, 2017 30-59 60-89 Greater Total Past Due Current Total Loans and Leases (Dollars in Thousands) Accruing loans and leases Commercial real estate: Owner occupied $ — $ — $ — $ — $ 193,366 $ 193,366 Non-owner occupied — — — — 470,202 470,202 Land development — — — — 37,528 37,528 Construction — 196 — 196 122,089 122,285 Multi-family — — — — 136,978 136,978 1-4 family 496 — — 496 43,319 43,815 Commercial and industrial 1,169 197 — 1,366 415,315 416,681 Direct financing leases, net — — — — 30,787 30,787 Consumer and other: Home equity and second mortgages 106 — — 106 7,156 7,262 Other — — — — 17,745 17,745 Total 1,771 393 — 2,164 1,474,485 1,476,649 Non-accruing loans and leases Commercial real estate: Owner occupied 405 — 4,836 5,241 1,780 7,021 Non-owner occupied — — — — 34 34 Land development — — — — 2,626 2,626 Construction — — 2,872 2,872 — 2,872 Multi-family — — — — — — 1-4 family — — 948 948 213 1,161 Commercial and industrial 782 — 7,349 8,131 4,190 12,321 Direct financing leases, net — — — — — — Consumer and other: Home equity and second mortgages — — — — — — Other — — 345 345 9 354 Total 1,187 — 16,350 17,537 8,852 26,389 Total loans and leases Commercial real estate: Owner occupied 405 — 4,836 5,241 195,146 200,387 Non-owner occupied — — — — 470,236 470,236 Land development — — — — 40,154 40,154 Construction — 196 2,872 3,068 122,089 125,157 Multi-family — — — — 136,978 136,978 1-4 family 496 — 948 1,444 43,532 44,976 Commercial and industrial 1,951 197 7,349 9,497 419,505 429,002 Direct financing leases, net — — — — 30,787 30,787 Consumer and other: Home equity and second mortgages 106 — — 106 7,156 7,262 Other — — 345 345 17,754 18,099 Total $ 2,958 $ 393 $ 16,350 $ 19,701 $ 1,483,337 $ 1,503,038 Percent of portfolio 0.20 % 0.03 % 1.09 % 1.32 % 98.68 % 100.00 % The Corporation’s total impaired assets consisted of the following: September 30, December 31, (In Thousands) Non-accrual loans and leases Commercial real estate: Commercial real estate — owner occupied $ 10,470 $ 7,021 Commercial real estate — non-owner occupied 32 34 Land development 2,257 2,626 Construction 1,879 2,872 Multi-family — — 1-4 family 568 1,161 Total non-accrual commercial real estate 15,206 13,714 Commercial and industrial 14,956 12,321 Direct financing leases, net — — Consumer and other: Home equity and second mortgages — — Other 451 354 Total non-accrual consumer and other loans 451 354 Total non-accrual loans and leases 30,613 26,389 Foreclosed properties, net 1,454 1,069 Total non-performing assets 32,067 27,458 Performing troubled debt restructurings 187 332 Total impaired assets $ 32,254 $ 27,790 September 30, December 31, Total non-accrual loans and leases to gross loans and leases 1.91 % 1.76 % Total non-performing assets to total gross loans and leases plus foreclosed properties, net 2.00 1.83 Total non-performing assets to total assets 1.69 1.53 Allowance for loan and lease losses to gross loans and leases 1.28 1.25 Allowance for loan and lease losses to non-accrual loans and leases 66.82 71.10 As of September 30, 2018 and December 31, 2017 , $8.1 million and $8.8 million of the non-accrual loans and leases were considered troubled debt restructurings, respectively. There were no unfunded commitments associated with troubled debt restructured loans and leases as of September 30, 2018 . All loans and leases modified as a troubled debt restructuring are measured for impairment. The nature and extent of the impairment of restructured loans, including those which have experienced a default, is considered in the determination of an appropriate level of the allowance for loan and lease losses. During the nine months ended September 30, 2018 , no loans were modified to a troubled debt restructuring. The following table provides the number of loans modified in a troubled debt restructuring and the pre- and post-modification recorded investment by class of receivable: For the Nine Months Ended September 30, 2017 Number of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment (Dollars in Thousands) Commercial and industrial 4 $ 4,374 $ 4,400 Consumer and other 1 17 17 Total 5 $ 4,391 $ 4,417 During the nine months ended September 30, 2017 , the troubled debt restructurings included a combination of extension of terms and interest rate concessions. There were no loans and leases modified in a troubled debt restructuring during the previous 12 months which subsequently defaulted during the nine months ended September 30, 2018 and 2017 . The following represents additional information regarding the Corporation’s impaired loans and leases, including performing troubled debt restructurings, by class: As of and for the Nine Months Ended September 30, 2018 Recorded (1) Unpaid Impairment Average (2) Foregone Interest Net (In Thousands) With no impairment reserve recorded: Commercial real estate: Owner occupied $ 9,326 $ 12,451 $ — $ 7,305 $ 614 $ 197 $ 417 Non-owner occupied 32 72 — 34 1 — 1 Land development 2,136 6,432 — 2,373 33 — 33 Construction — — — 2,039 — — — Multi-family — — — — — — — 1-4 family 752 1,022 — 961 40 76 (36 ) Commercial and industrial 4,434 5,094 — 3,133 870 442 428 Direct financing leases, net — — — — — — — Consumer and other: Home equity and second mortgages — — — 1 — 45 (45 ) Other 291 957 — 306 42 — 42 Total 16,971 26,028 — 16,152 1,600 760 840 With impairment reserve recorded: Commercial real estate: Owner occupied 1,144 1,144 193 255 64 — 64 Non-owner occupied — — — — — — — Land development 121 121 — 35 39 — 2 — — 2 Construction 1,879 2,872 — 379 207 — 162 — — 162 Multi-family — — — — — — — 1-4 family — — — — — — — Commercial and industrial 10,525 10,867 3,802 9,810 716 — 716 Direct financing leases, net — — — — — — — Consumer and other: Home equity and second mortgages — — — — — — — Other 160 160 160 8 — — — Total 13,829 15,164 4,569 10,319 944 — 944 Total: Commercial real estate: Owner occupied 10,470 13,595 193 7,560 678 197 481 Non-owner occupied 32 72 — 34 1 — 1 Land development 2,257 6,553 35 2,412 35 — 35 Construction 1,879 2,872 379 2,246 162 — 162 Multi-family — — — — — — — 1-4 family 752 1,022 — 961 40 76 (36 ) Commercial and industrial 14,959 15,961 3,802 12,943 1,586 442 1,144 Direct financing leases, net — — — — — — — Consumer and other: Home equity and second mortgages — — — 1 — 45 (45 ) Other 451 1,117 160 314 42 — 42 Grand total $ 30,800 $ 41,192 $ 4,569 $ 26,471 $ 2,544 $ 760 $ 1,784 (1) The recorded investment represents the unpaid principle balance net of any partial charge-offs. (2) Average recorded investment is calculated primarily using daily average balances. As of and for the Year Ended December 31, 2017 Recorded Investment (1) Unpaid Principal Balance Impairment Reserve Average Recorded Investment (2) Foregone Interest Income Interest Income Recognized Net Foregone Interest Income (In Thousands) With no impairment reserve recorded: Commercial real estate: Owner occupied $ 7,077 $ 7,077 $ — $ 5,549 $ 613 $ — $ 613 Non-owner occupied 34 75 — 1,830 97 226 (129 ) Land development 2,627 5,297 — 3,092 84 — 84 Construction — — — 2,000 134 214 (80 ) Multi-family — — — 1 — — — 1-4 family 1,423 1,706 — 2,146 53 7 46 Commercial and industrial 5,465 6,502 — 3,634 858 7 851 Direct financing leases, net — — — — — — — Consumer and other: Home equity and second mortgages 4 3 — 7 — — — Other 345 1,011 — 365 59 — 59 Total 16,975 21,671 — 18,624 1,898 454 1,444 With impairment reserve recorded: Commercial real estate: Owner occupied — — — — — — — Non-owner occupied — — — — — — — Land development — — — — — — — Construction 2,872 2,872 415 2,252 158 — 158 Multi-family — — — — — — — 1-4 family — — — — — — — Commercial and industrial 6,865 8,813 4,067 12,288 639 — 639 Direct financing leases, net — — — — — — — Consumer and other: Home equity and second mortgages — — — — — — — Other 9 9 9 — — — — Total 9,746 11,694 4,491 14,540 797 — 797 Total: Commercial real estate: Owner occupied 7,077 7,077 — 5,549 613 — 613 Non-owner occupied 34 75 — 1,830 97 226 (129 ) Land development 2,627 5,297 — 3,092 84 — 84 Construction 2,872 2,872 415 4,252 292 214 78 Multi-family — — — 1 — — — 1-4 family 1,423 1,706 — 2,146 53 7 46 Commercial and industrial 12,330 15,315 4,067 15,922 1,497 7 1,490 Direct financing leases, net — — — — — — — Consumer and other: Home equity and second mortgages 4 3 — 7 — — — Other 354 1,020 9 365 59 — 59 Grand total $ 26,721 $ 33,365 $ 4,491 $ 33,164 $ 2,695 $ 454 $ 2,241 (1) The recorded investment represents the unpaid principle balance net of any partial charge-offs. (2) Average recorded investment is calculated primarily using daily average balances. The difference between the recorded investment of loans and leases and the unpaid principal balance of $10.4 million and $6.6 million as of September 30, 2018 and December 31, 2017 , respectively, represents partial charge-offs of loans and leases resulting from losses due to the appraised value of the collateral securing the loans and leases being below the carrying values of the loans and leases. Impaired loans and leases also included $187,000 and $332,000 of loans as of September 30, 2018 and December 31, 2017 , respectively, that were performing troubled debt restructurings, and although not on non-accrual, were reported as impaired due to the concession in terms. When a loan is placed on non-accrual, interest accrual is discontinued and previously accrued but uncollected interest is deducted from interest income. Cash payments collected on non-accrual loans are first applied to such loan’s principal. Foregone interest represents the interest that was contractually due on the loan but not received or recorded. To the extent the amount of principal on a non-accrual loan is fully collected and additional cash is received, the Corporation will recognize interest income. To determine the level and composition of the allowance for loan and lease losses, the Corporation categorizes the portfolio into segments with similar risk characteristics. First, the Corporation evaluates loans and leases for potential impairment classification. The Corporation analyzes each loan and lease determined to be impaired on an individual basis to determine a specific reserve based upon the estimated value of the underlying collateral for collateral-dependent loans, or alternatively, the present value of expected cash flows. The Corporation applies historical trends from established risk factors to each category of loans and leases that has not been individually evaluated for the purpose of establishing the general portion of the allowance. A summary of the activity in the allowance for loan and lease losses by portfolio segment is as follows: As of and for the Three Months Ended September 30, 2018 Commercial Real Estate Commercial and Industrial Consumer and Other Total (In Thousands) Beginning balance $ 11,147 $ 9,237 $ 548 $ 20,932 Charge-offs (1,826 ) (75 ) (13 ) (1,914 ) Recoveries 7 1,974 2 1,983 Net (charge-offs) recoveries (1,819 ) 1,899 (11 ) 69 Provision for loan and lease losses 2,365 (3,252 ) 341 (546 ) Ending balance $ 11,693 $ 7,884 $ 878 $ 20,455 As of and for the Three Months Ended September 30, 2017 Commercial Real Estate Commercial and Industrial Consumer and Other Total (In Thousands) Beginning balance $ 12,003 $ 9,090 $ 584 $ 21,677 Charge-offs (8 ) (3,217 ) (5 ) (3,230 ) Recoveries 2 2 1 5 Net charge-offs (6 ) (3,215 ) (4 ) (3,225 ) Provision for loan and lease losses (2,462 ) 3,968 (35 ) 1,471 Ending balance $ 9,535 $ 9,843 $ 545 $ 19,923 As of and for the Nine Months Ended September 30, 2018 Commercial Real Estate Commercial and Industrial Consumer and Other Total (In Thousands) Beginning balance $ 10,131 $ 8,225 $ 407 $ 18,763 Charge-offs (4,122 ) (732 ) (50 ) (4,904 ) Recoveries 22 1,993 73 2,088 Net (charge-offs) recoveries (4,100 ) 1,261 23 (2,816 ) Provision for loan and lease losses 5,662 (1,602 ) 448 4,508 Ending balance $ 11,693 $ 7,884 $ 878 $ 20,455 As of and for the Nine Months Ended September 30, 2017 Commercial Real Estate Commercial and Industrial Consumer and Other Total (In Thousands) Beginning balance $ 12,384 $ 7,970 $ 558 $ 20,912 Charge-offs (126 ) (6,978 ) (92 ) (7,196 ) Recoveries 152 314 42 508 Net recoveries (charge-offs) 26 (6,664 ) (50 ) (6,688 ) Provision for loan and lease losses (2,875 ) 8,537 37 5,699 Ending balance $ 9,535 $ 9,843 $ 545 $ 19,923 The following tables provide information regarding the allowance for loan and lease losses and balances by type of allowance methodology. As of September 30, 2018 Commercial Real Estate Commercial and Industrial Consumer and Other Total (In Thousands) Allowance for loan and lease losses: Collectively evaluated for impairment $ 11,086 $ 4,082 $ 718 $ 15,886 Individually evaluated for impairment 607 3,802 160 4,569 Loans acquired with deteriorated credit quality — — — — Total $ 11,693 $ 7,884 $ 878 $ 20,455 Loans and lease receivables: Collectively evaluated for impairment $ 1,063,858 $ 474,063 $ 31,388 $ 1,569,309 Individually evaluated for impairment 15,144 14,956 451 30,551 Loans acquired with deteriorated credit quality 246 3 — 249 Total $ 1,079,248 $ 489,022 $ 31,839 $ 1,600,109 As of December 31, 2017 Commercial Real Estate Commercial and Industrial Consumer and Other Total (In Thousands) Allowance for loan and lease losses: Collectively evaluated for impairment $ 9,716 $ 4,158 $ 398 $ 14,272 Individually evaluated for impairment 415 4,067 9 4,491 Loans acquired with deteriorated credit quality — — — — Total $ 10,131 $ 8,225 $ 407 $ 18,763 Loans and lease receivables: Collectively evaluated for impairment $ 1,003,855 $ 447,459 $ 25,003 $ 1,476,317 Individually evaluated for impairment 13,506 12,324 358 26,188 Loans acquired with deteriorated credit quality 527 6 — 533 Total $ 1,017,888 $ 459,789 $ 25,361 $ 1,503,038 |
Other Assets (Notes)
Other Assets (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Note 6 — Other Assets The Corporation is a limited partner in several limited partnership investments. The Corporation is not the general partner, does not have controlling ownership and is not the primary beneficiary in any of these limited partnerships and the limited partnerships have not been consolidated. These investments are accounted for using the equity method of accounting and are evaluated for impairment at the end of each reporting period. A summary of accrued interest receivable and other assets is as follows: September 30, 2018 December 31, 2017 (In Thousands) Accrued interest receivable $ 5,678 $ 5,019 Net deferred tax asset 2,173 2,584 Investment in historic development entities 1,849 1,161 Investment in a community development entity 6,209 6,591 Investment in limited partnerships 3,888 4,261 Investment in Trust II 315 315 Fair value of interest rate swaps 2,470 942 Prepaid expenses 3,266 3,091 Other assets 5,445 5,884 Total accrued interest receivable and other assets $ 31,293 $ 29,848 |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2018 | |
Deposits [Abstract] | |
Deposits | Deposits The composition of deposits is shown below. Average balances represent year-to-date averages. September 30, 2018 December 31, 2017 Balance Average Balance Average Rate Balance Average Balance Average Rate (Dollars in Thousands) Non-interest-bearing transaction accounts $ 233,915 $ 236,208 — % $ 277,445 $ 230,907 — % Interest-bearing transaction accounts 256,303 278,042 0.87 217,625 226,540 0.59 Money market accounts 475,322 487,395 0.91 515,077 583,241 0.47 Certificates of deposit 111,311 80,630 1.42 76,199 56,667 1.00 Wholesale deposits 332,052 302,262 1.88 307,985 361,712 1.70 Total deposits $ 1,408,903 $ 1,384,537 0.99 $ 1,394,331 $ 1,459,067 0.74 |
FHLB Advances, Other Borrowings
FHLB Advances, Other Borrowings and Junior Subordinated Notes Payable | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
FHLB Advances, Other Borrowings and Junior Subordinated Notes Payable | FHLB Advances, Other Borrowings and Junior Subordinated Notes The composition of borrowed funds is shown below. Average balances represent year-to-date averages. September 30, 2018 December 31, 2017 Balance Weighted Average Balance Weighted Average Rate Balance Weighted Average Balance Weighted Average Rate (Dollars in Thousands) Federal funds purchased $ — $ 159 2.43 % $ — $ 66 1.22 % FHLB advances 257,000 277,866 2.01 183,500 105,276 1.40 Line of credit — 5 4.46 10 328 3.64 Other borrowings (1) 675 675 8.12 675 1,241 14.50 Subordinated notes payable 23,755 23,732 6.65 23,713 23,161 6.93 Junior subordinated notes 10,029 10,023 11.07 10,019 10,011 11.11 $ 291,459 $ 312,460 2.67 $ 217,917 $ 140,083 3.14 Short-term borrowings $ 105,500 $ 37,010 Long-term borrowings 185,959 180,907 $ 291,459 $ 217,917 (1) Weighted-average rate of other borrowings reflects the cost of prepaying a secured borrowing during the second quarter of 2017. As of September 30, 2018 and December 31, 2017 , the Corporation was in compliance with its debt covenants under its third-party secured senior line of credit. Per the promissory note dated February 19, 2018, the Corporation pays a commitment fee on this line of credit. During both the nine months ended September 30, 2018 and 2017 , the Corporation incurred interest expense due to this fee of $10,000 . |
Commitments and Contingencies (
Commitments and Contingencies (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies In the normal course of business, various legal proceedings involving the Corporation are pending. Management, based upon advice from legal counsel, does not anticipate any significant losses as a result of these actions. Management believes that any liability arising from any such proceedings currently existing or threatened will not have a material adverse effect on the Corporation’s financial position, results of operations and cash flows. The Corporation sells the guaranteed portions of SBA loans, as well as participation interests in other originated loans, to third parties. The Corporation has a continuing involvement in each of the transferred lending arrangements by way of relationship management and servicing the loans, as well as being subject to normal and customary requirements of the SBA loan program and standard representations and warranties related to sold amounts. In the event of a loss resulting from default and a determination by the SBA that there is a deficiency in the manner in which the loan was originated, funded or serviced by the Corporation, the SBA may require the Corporation to repurchase the loan, deny its liability under the guaranty, reduce the amount of the guaranty, or, if it has already paid under the guaranty, seek recovery of the principal loss related to the deficiency from the Corporation. The Corporation must comply with applicable SBA regulations in order to maintain the guaranty. In addition, the Corporation retains the option to repurchase the sold guaranteed portion of an SBA loan if the loan defaults. Management has assessed estimated losses inherent in the outstanding guaranteed portions of SBA loans sold in accordance with ASC 450, Contingencies , and determined a recourse reserve based on the probability of future losses for these loans to be $2.7 million at September 30, 2018 , which is reported in accrued interest payable and other liabilities on the unaudited Consolidated Balance Sheets. The summary of the activity in the SBA recourse reserve is as follows: As of and for the Nine Months Ended September 30, 2018 September 30, 2017 (In Thousands) Balance at the beginning of the period $ 2,849 $ 1,750 SBA recourse provision 118 2,095 Charge-offs, net (238 ) (1,141 ) Balance at the end of the period $ 2,729 $ 2,704 |
Fair Value Disclosures
Fair Value Disclosures | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Disclosures The Corporation determines the fair values of its financial instruments based on the fair value hierarchy established in ASC Topic 820, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is defined as the price that would be received in an orderly transaction that is not a forced liquidation or distressed sale at the measurement date and is based on exit prices. Fair value includes assumptions about risk, such as nonperformance risk in liability fair values, and is a market-based measurement, not an entity-specific measurement. The standard describes three levels of inputs that may be used to measure fair value. Level 1 — Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Corporation has the ability to access at the measurement date. Level 2 — Level 2 inputs are inputs, other than quoted prices included with Level 1, that are observable for the asset or liability either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 — Level 3 inputs are supported by little or no market activity and are significant to the fair value of the assets or liabilities. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Corporation’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Assets and liabilities measured at fair value on a recurring basis, segregated by fair value hierarchy level, are summarized below: September 30, 2018 Fair Value Measurements Using Level 1 Level 2 Level 3 Total (In Thousands) Assets: Securities available-for-sale: U.S. government agency obligations - government-sponsored enterprises $ — $ 984 $ — $ 984 Municipal obligations — 5,729 — 5,729 Collateralized mortgage obligations - government issued — 20,280 — 20,280 Collateralized mortgage obligations - government-sponsored enterprises — 105,619 — 105,619 Other securities — 2,383 — 2,383 Interest rate swaps — 2,470 — 2,470 Liabilities: Interest rate swaps — 1,180 — 1,180 December 31, 2017 Fair Value Measurements Using Level 1 Level 2 Level 3 Total (In Thousands) Assets: Securities available-for-sale: U.S. government agency obligations - government-sponsored enterprises $ — $ 1,000 $ — $ 1,000 Municipal obligations — 9,414 — 9,414 Collateralized mortgage obligations - government issued — 22,249 — 22,249 Collateralized mortgage obligations - government-sponsored enterprises — 90,305 — 90,305 Other securities — 3,037 — 3,037 Interest rate swaps — 942 — 942 Liabilities: Interest rate swaps — 1,064 — 1,064 For assets and liabilities measured at fair value on a recurring basis, there were no transfers between the levels during the three and nine months ended September 30, 2018 or the year ended December 31, 2017 related to the above measurements. Assets and liabilities measured at fair value on a non-recurring basis, segregated by fair value hierarchy are summarized below: September 30, 2018 Fair Value Measurements Using Level 1 Level 2 Level 3 Total (In Thousands) Impaired loans $ — $ 20,260 $ 4,680 $ 24,940 Foreclosed properties — 1,454 — 1,454 Loan servicing rights — — 1,354 1,354 December 31, 2017 Fair Value Measurements Using Level 1 Level 2 Level 3 Total (In Thousands) Impaired loans $ — $ 10,063 $ 5,084 $ 15,147 Foreclosed properties — 1,069 — 1,069 Impaired loans were written down to the fair value of their underlying collateral less costs to sell of $24.9 million and $15.1 million at September 30, 2018 and December 31, 2017 , respectively, through the establishment of specific reserves or by recording charge-offs when the carrying value exceeded the fair value of the underlying collateral of impaired loans. Valuation techniques consistent with the market approach, income approach or cost approach were used to measure fair value and primarily included observable inputs for the individual impaired loans being evaluated such as current appraisals, recent sales of similar assets or other observable market data, and are reflected within Level 2 of the hierarchy. In cases where an input is unobservable, typically when discounts are applied to appraisal values to adjust such values to current market conditions or to reflect net realizable value, the impaired loan balance is reflected within Level 3 of the hierarchy. The quantification of unobservable inputs for Level 3 impaired loan values range from 13% - 75% as of the measurement date of September 30, 2018 . The weighted-average of those unobservable inputs was 19% . The majority of the impaired loans in the Level 3 category are considered collateral dependent loans or are supported by a SBA guaranty. Foreclosed properties, upon initial recognition, are remeasured and reported at fair value through a charge-off to the allowance for loan and lease losses, if deemed necessary, based upon the fair value of the foreclosed property. The fair value of a foreclosed property, upon initial recognition, is estimated using a market approach or Level 2 inputs based on observable market data, typically a current appraisal, or Level 3 inputs based upon assumptions specific to the individual property or equipment. Level 3 inputs typically include unobservable inputs such as management applied discounts used to further reduce values to a net realizable value and may be used in situations when observable inputs become stale. Foreclosed property fair value inputs may transition to Level 1 upon receipt of an accepted offer for the sale of the related foreclosed property. Loan servicing rights represent the asset retained upon sale of the guaranteed portion of certain SBA loans. When SBA loans are sold, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. The servicing rights are subsequently measured using the amortization method, which requires amortization into interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. The Corporation periodically reviews this portfolio for impairment and engages a third-party valuation firm to assess the fair value of the overall servicing rights portfolio. Loan servicing rights do not trade in an active, open market with readily observable prices. While sales of loan servicing rights do occur, the precise terms and conditions typically are not readily available to allow for a “quoted price for similar assets” comparison. Accordingly, the Corporation utilizes an independent valuation from a third party which uses a discounted cash flow model to estimate the fair value of its loan servicing rights. The valuation model incorporates prepayment assumptions to project loan servicing rights cash flows based on the current interest rate scenario, which is then discounted to estimate an expected fair value of the loan servicing rights. The valuation model considers portfolio characteristics of the underlying serviced portion of the SBA loans and uses the following significant unobservable inputs: (1) constant prepayment rate (“CPR”) assumptions based on the SBA sold pools historical CPR as quoted in Bloomberg and (2) a discount rate of 10%. Due to the nature of the valuation inputs, loan servicing rights are classified in Level 3 of the fair value hierarchy. Fair Value of Financial Instruments The Corporation is required to disclose estimated fair values for its financial instruments. Fair value estimates, methods and assumptions, consistent with exit price concepts for fair value measurements, are set forth below: September 30, 2018 Carrying Amount Fair Value Total Level 1 Level 2 Level 3 (In Thousands) Financial assets: Cash and cash equivalents $ 40,293 $ 40,293 $ 26,993 $ 13,300 $ — Securities available-for-sale 134,995 134,995 — 134,995 — Securities held-to-maturity 39,950 39,130 — 39,130 — Loans held for sale 4,712 5,183 — 5,183 — Loans and lease receivables, net 1,578,152 1,569,571 — 20,260 1,549,311 Federal Home Loan Bank stock 6,890 N/A N/A N/A N/A Accrued interest receivable 5,678 5,678 5,678 — — Interest rate swaps 2,470 2,470 — 2,470 — Financial liabilities: Deposits 1,408,903 1,405,963 965,540 440,423 — Federal Home Loan Bank advances and other borrowings 281,430 276,601 — 276,601 — Junior subordinated notes 10,029 9,951 — — 9,951 Accrued interest payable 3,407 3,407 3,407 — — Interest rate swaps 1,180 1,180 — 1,180 — Off-balance-sheet items: Standby letters of credit 53 53 — — 53 N/A = The fair value is not applicable due to restrictions placed on transferability December 31, 2017 Carrying Amount Fair Value Total Level 1 Level 2 Level 3 (In Thousands) Financial assets: Cash and cash equivalents $ 52,539 $ 52,539 $ 35,114 $ 17,425 $ — Securities available-for-sale 126,005 126,005 — 126,005 — Securities held-to-maturity 37,778 37,696 — 37,696 — Loans held for sale 2,194 2,413 — 2,413 — Loans and lease receivables, net 1,482,832 1,482,664 — 10,063 1,472,601 Federal Home Loan Bank stock 5,670 N/A N/A N/A N/A Accrued interest receivable 5,019 5,019 5,019 — — Interest rate swaps 942 942 — 942 — Financial liabilities: Deposits 1,394,331 1,391,801 1,010,147 381,654 — Federal Home Loan Bank advances and other borrowings 207,898 206,441 — 206,441 — Junior subordinated notes 10,019 8,836 — — 8,836 Accrued interest payable 2,095 2,095 2,095 — — Interest rate swaps 1,064 1,064 — 1,064 — Off-balance-sheet items: Standby letters of credit 75 75 — — 75 N/A = The fair value is not applicable due to restrictions placed on transferability Disclosure of fair value information about financial instruments, for which it is practicable to estimate that value, is required whether or not recognized in the unaudited Consolidated Balance Sheets. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments. Certain financial instruments and all non-financial instruments are excluded from the disclosure requirements. Accordingly, the aggregate fair value amounts presented do not necessarily represent the underlying value of the Corporation. Securities: The fair value measurements of investment securities are determined by a third-party pricing service which considers observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, trade execution data, market consensus prepayment speeds, credit information and the securities’ terms and conditions, among other things. The fair value measurements are subject to independent verification by another pricing source on a quarterly basis to review for reasonableness. Any significant differences in pricing are reviewed with appropriate members of management who have the relevant technical expertise to assess the results. The Corporation has determined that these valuations are classified in Level 2 of the fair value hierarchy. When the independent pricing service does not provide a fair value measurement for a particular security, the Corporation will estimate the fair value based on specific information about each security. Fair values derived in this manner are classified in Level 3 of the fair value hierarchy. Loans Held for Sale: Loans held for sale, which consist of the guaranteed portions of SBA loans, are carried at the lower of cost or estimated fair value. The estimated fair value is based on what secondary markets are currently offering for portfolios with similar characteristics. Interest Rate Swaps: The carrying amount and fair value of existing derivative financial instruments are based upon independent valuation models, which use widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative contract. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The Corporation incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Corporation considers the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts and guarantees. Limitations: Fair value estimates are made at a discrete point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Corporation’s entire holding of a particular financial instrument. Because no market exists for a significant portion of the Corporation’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and are not considered in the estimates. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Corporation offers interest rate swap products directly to qualified commercial borrowers. The Corporation economically hedges client derivative transactions by entering into offsetting interest rate swap contracts executed with a third party. Derivative transactions executed as part of this program are not considered hedging instruments and are marked- to-market through earnings each period. The derivative contracts have mirror-image terms, which results in the positions’ changes in fair value primarily offsetting through earnings each period. The credit risk and risk of non-performance embedded in the fair value calculations is different between the dealer counterparties and the commercial borrowers which may result in a difference in the changes in the fair value of the mirror-image swaps. The Corporation incorporates credit valuation adjustments to appropriately reflect both its own non-performance risk and the counterparty’s risk in the fair value measurements. When evaluating the fair value of its derivative contracts for the effects of non-performance and credit risk, the Corporation considered the impact of netting and any applicable credit enhancements such as collateral postings, thresholds and guarantees. At September 30, 2018 , the aggregate amortizing notional value of interest rate swaps with various commercial borrowers was $114.2 million . The Corporation receives fixed rates and pays floating rates based upon LIBOR on the swaps with commercial borrowers. These interest rate swaps mature between April 2019 and July 2034 . Commercial borrower swaps are completed independently with each borrower and are not subject to master netting arrangements. These commercial borrower swaps were reported on the unaudited Consolidated Balance Sheet as a derivative asset of $379,000 , included in accrued interest receivable and other assets, and as a derivative liability of $1.2 million , included in accrued interest payable and other liabilities. As of September 30, 2018 , no interest rate swaps were in default. At September 30, 2018 , the aggregate amortizing notional value of interest rate swaps with dealer counterparties was also $114.2 million . The Corporation pays fixed rates and receives floating rates based upon LIBOR on the swaps with dealer counterparties. These interest rate swaps mature in April 2019 through July 2034 . Dealer counterparty swaps are subject to master netting agreements among the contracts within our Bank and are reported on the unaudited Consolidated Balance Sheet as a net derivative asset of $800,000 , included in accrued interest receivable and other assets. The gross amount of dealer counterparty swaps, without regard to the enforceable master netting agreement, was a gross derivative liability of $379,000 and a gross derivative asset of $1.2 million . No right of offset existed with dealer counterparty swaps as of September 30, 2018 . All changes in the fair value of these instruments are recorded in other non-interest income. Given the mirror-image terms of the outstanding derivative portfolio, the change in fair value for the three and nine months ended September 30, 2018 and 2017 had an insignificant impact on the unaudited Consolidated Statements of Income. The Corporation also enters into interest rate swaps to manage interest rate risk and reduce the cost of match-funding certain long-term fixed rate loans. These derivative contracts involve the receipt of floating rate interest from a counterparty in exchange for the Corporation making fixed-rate payments over the life of the agreement, without the exchange of the underlying notional value. The instruments are designated as cash flow hedges as the receipt of floating rate interest from the counterparty is used to manage interest rate risk associated with forecasted issuances of short-term FHLB advances. The change in the fair value of these hedging instruments is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged transactions affects earnings. As of September 30, 2018 , the aggregate notional value of interest rate swaps designated as cash flow hedges was $30.0 million . These interest rate swaps mature between June 2027 and December 2027 . A pre-tax unrealized gain of $ 382,000 and $1.4 million was recognized in other comprehensive income for the three and nine months ended September 30, 2018 , respectively, and there was no ineffective portion of these hedges. The table below provides information about the balance sheet location and fair value of the Corporation’s derivative instruments: Interest Rate Swap Contracts Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In Thousands) Derivatives not designated as hedging instruments September 30, 2018 Accrued interest receivable and other assets $ 1,180 Accrued interest payable and other liabilities $ 1,180 December 31, 2017 Accrued interest receivable and other assets $ 942 Accrued interest payable and other liabilities $ 942 Derivatives designated as hedging instruments September 30, 2018 Accrued interest receivable and other assets $ 1,290 Accumulated other comprehensive income (1) $ 1,290 December 31, 2017 Accumulated other comprehensive income (1) $ 122 Accrued interest payable and other liabilities $ 122 (1) The fair value of derivatives designated as hedging instruments included in accumulated other comprehensive income represent pre-tax amounts, which are reported net of tax on the unaudited Consolidated Balance Sheets. |
Regulatory Capital
Regulatory Capital | 9 Months Ended |
Sep. 30, 2018 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Capital | Regulatory Capital The Corporation and the Bank are subject to various regulatory capital requirements administered by Federal and the State of Wisconsin banking agencies. Failure to meet minimum capital requirements can result in certain mandatory, and possibly additional discretionary actions on the part of regulators, that if undertaken, could have a direct material effect on the Bank’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory practices. The Corporation’s and the Bank’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. The Corporation regularly reviews and updates, when appropriate, its Capital and Liquidity Action Plan, which is designed to help ensure appropriate capital adequacy, to plan for future capital needs and to ensure that the Corporation serves as a source of financial strength to the Bank. The Corporation’s and the Bank’s Boards of Directors and management teams adhere to the appropriate regulatory guidelines on decisions which affect their respective capital positions, including but not limited to, decisions relating to the payment of dividends and increasing indebtedness. As a bank holding company, the Corporation’s ability to pay dividends is affected by the policies and enforcement powers of the Board of Governors of the Federal Reserve system (the “Federal Reserve” or “FRB”). Federal Reserve guidance urges financial institutions to strongly consider eliminating, deferring or significantly reducing dividends if: (i) net income available to common stockholders for the past four quarters, net of dividends previously paid during that period, is not sufficient to fully fund the dividend; (ii) the prospective rate of earnings retention is not consistent with the bank holding company’s capital needs and overall current and prospective financial condition; or (iii) the bank holding company will not meet, or is in danger of not meeting, its minimum regulatory capital ratios. Management intends, when appropriate under regulatory guidelines, to consult with the Federal Reserve Bank of Chicago and provide it with information on the Corporation’s then-current and prospective earnings and capital position in advance of declaring any cash dividends. As a Wisconsin corporation, the Corporation is subject to the limitations of the Wisconsin Business Corporation Law, which prohibit the Corporation from paying dividends if such payment would: (i) render the Corporation unable to pay its debts as they become due in the usual course of business, or (ii) result in the Corporation’s assets being less than the sum of its total liabilities plus the amount needed to satisfy the preferential rights upon dissolution of any stockholders with preferential rights superior to those stockholders receiving the dividend. The Bank is also subject to certain legal, regulatory and other restrictions on their ability to pay dividends to the Corporation. As a bank holding company, the payment of dividends by the Bank to the Corporation is one of the sources of funds the Corporation could use to pay dividends, if any, in the future and to make other payments. Future dividend decisions by the Bank and the Corporation will continue to be subject to compliance with various legal, regulatory and other restrictions as defined from time to time. Qualitative measures established by regulation to ensure capital adequacy require the Corporation and the Bank to maintain minimum amounts and ratios of Total Common Equity Tier 1 and Tier 1 capital to risk-weighted assets and of Tier 1 capital to adjusted total assets. These risk-based capital requirements presently address credit risk related to both recorded and off-balance-sheet commitments and obligations. In July 2013, the FRB and the Federal Deposit Insurance Corporation approved the final rules implementing the Basel Committee on Banking Supervision’s capital guidelines for U.S. banks. These rules are applicable to all financial institutions that are subject to minimum capital requirements, including federal and state banks and savings and loan associations, as well as bank and savings and loan holding companies other than “small bank holding companies” (generally non-publicly traded bank holding companies with consolidated assets of less than $1 billion). Under the final rules, minimum requirements increased for both the quantity and quality of capital held by the Corporation. The rules include a new Common Equity Tier 1 capital to risk-weighted assets minimum ratio of 4.5%, raise the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0% to 6.0%, require a minimum ratio of Total Capital to risk-weighted assets of 8.0%, and require a minimum Tier 1 leverage ratio of 4.0%. The rules also permit banking organizations with less than $15 billion in assets to retain, through a one-time election, the past treatment for accumulated other comprehensive income, which did not affect regulatory capital. The Corporation elected to retain this treatment, which reduces the volatility of regulatory capital ratios. A new capital conservation buffer, comprised of Common Equity Tier 1 capital, was also established above the regulatory minimum capital requirements. This capital conservation buffer is being phased in beginning January 1, 2016 at 0.625% of risk-weighted assets and increases each subsequent year by an additional 0.625% until reaching its final level of 2.5% on January 1, 2019 . As of September 30, 2018 , the Corporation’s capital levels exceeded the regulatory minimums and Bank’s capital levels remained characterized as well capitalized under the regulatory framework. The following tables summarize both the Corporation’s and Bank’s capital ratios and the ratios required by their federal regulators: Actual Minimum Required for Capital Adequacy Purposes For Capital Adequacy Purposes Plus Capital Conservation Buffer Minimum Required to Be Well Amount Ratio Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) As of September 30, 2018 Total capital (to risk-weighted assets) Consolidated $ 225,160 12.05 % $ 149,515 8.00 % $ 184,558 9.875 % N/A N/A First Business Bank 217,620 11.70 148,847 8.00 183,733 9.875 186,058 10.00 Tier 1 capital (to risk-weighted assets) Consolidated $ 178,220 9.54 % $ 112,136 6.00 % $ 147,179 7.875 % N/A N/A First Business Bank 194,435 10.45 111,635 6.00 146,521 7.875 148,847 8.00 Common equity tier 1 capital (to risk-weighted assets) Consolidated $ 168,191 9.00 % $ 84,102 4.50 % $ 119,145 6.375 % N/A N/A First Business Bank 194,435 10.45 83,726 4.50 118,612 6.375 120,938 6.50 Tier 1 leverage capital (to adjusted assets) Consolidated $ 178,220 9.34 % $ 76,324 4.00 % $ 76,324 4.00 % N/A N/A First Business Bank 194,435 10.24 75,968 4.00 75,968 4.00 94,961 5.00 Actual Minimum Required for Capital Adequacy Purposes For Capital Adequacy Purposes Plus Capital Conservation Buffer Minimum Required to Be Well Amount Ratio Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) As of December 31, 2017 Total capital (to risk-weighted assets) Consolidated $ 214,501 11.98 % $ 143,219 8.00 % $ 165,597 9.250 % N/A N/A First Business Bank 207,986 11.66 142,736 8.00 165,038 9.250 $ 178,420 10.00 % Tier 1 capital (to risk-weighted assets) Consolidated $ 169,176 9.45 % $ 107,414 6.00 % $ 129,792 7.250 % N/A N/A First Business Bank 186,374 10.45 107,052 6.00 129,354 7.250 $ 142,736 8.00 % Common equity tier 1 capital (to risk-weighted assets) Consolidated $ 159,157 8.89 % $ 80,561 4.50 % $ 102,939 5.750 % N/A N/A First Business Bank 186,374 10.45 80,289 4.50 102,591 5.750 $ 115,973 6.50 % Tier 1 leverage capital (to adjusted assets) Consolidated $ 169,176 9.54 % $ 70,920 4.00 % $ 70,920 4.00 % N/A N/A First Business Bank 186,374 10.56 70,617 4.00 70,617 4.00 $ 88,272 5.00 % |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies Nature of Operations and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited Consolidated Financial Statements were prepared in accordance with GAAP and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Corporation’s Consolidated Financial Statements and footnotes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2017 . |
Principles of Consolidation | The unaudited Consolidated Financial Statements include the accounts of the Corporation and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. In accordance with the provisions of Accounting Standards Codification (“ASC”) Topic 810, the Corporation’s ownership interest in FBFS Statutory Trust II (“Trust II”) has not been consolidated into the financial statements. |
Use of Estimates | Management of the Corporation is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements as well as reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Material estimates that could significantly change in the near-term include the value of securities and interest rate swaps, level of the allowance for loan and lease losses, lease residuals, property under operating leases, goodwill, level of the Small Business Administration (“SBA”) recourse reserve and income taxes. |
Reclassification | Certain amounts in prior periods may have been reclassified to conform to the current presentation. |
Subsequent Events | Subsequent events have been evaluated through the date of the issuance of the unaudited Consolidated Financial Statements. No significant subsequent events have occurred through this date requiring adjustment to the financial statements or disclosures. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” The ASU is a converged standard between the FASB and the International Accounting Standards Board that provides a single comprehensive revenue recognition model for all contracts with customers across transactions and industries. The primary objective of the ASU is revenue recognition that represents the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The Corporation adopted ASU 2014-09 and all subsequent amendments to the ASU (collectively, “ASC 606”) in the first quarter of 2018 with no material impact on its results of operations, financial position and liquidity. In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments (Subtopic 825-10).” The ASU amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments. This amendment supersedes the guidance to classify equity securities with readily determinable fair values into different categories, requires equity securities to be measured at fair value with changes in the fair value recognized through net income and simplifies the impairment assessment of equity investments without readily determinable fair values. The amendment requires public business entities that are required to disclose the fair value of financial instruments measured at amortized cost on the balance sheet to measure that fair value using the exit price notion. The amendment requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option. The Corporation adopted the accounting standard during the first quarter of 2018 and modified its fair value disclosure of financial instruments to reflect an exit price notion. The adoption of the standard did not have a material impact on the Corporation’s results of operations, financial position and liquidity. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” The ASU intends to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities and disclosing key information about leasing arrangements. The ASU will require lessees to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessees’ obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers . The new lease guidance simplifies the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) may apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may also elect to apply the amendments in the ASU through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The ASU is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The Corporation intends to adopt the accounting standard during the first quarter of 2019, as required. The Corporation leases office space, loan production offices and specialty financing production offices under noncancelable operating leases which expire on various dates through 2028. The Corporation also leases office equipment. The implementation efforts are ongoing, including the review of our leases and related accounting policies. Future minimum lease payments associated with 29 noncancelable operating leases as of September 30, 2018 was $10.6 million . The Corporation does not expect the accounting standard to have a material impact on its results of operations and liquidity. The estimated impact on its financial position continues to be refined, which may also change based on decisions to modify or renew leases prior to the implementation date. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments- Credit Losses (Topic 326).” The ASU replaces the incurred loss impairment methodology for recognizing credit losses with a methodology that reflects all expected credit losses. The ASU also requires consideration of a broader range of information to inform credit loss estimates, including such factors as past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures and any other financial asset not excluded from the scope that have the contractual right to receive cash. Entities will apply the amendments in the ASU through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The ASU is effective for public companies for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted as of the fiscal years beginning after December 15, 2018. The Corporation intends to adopt the accounting standard during the first quarter of 2020, as required, and is currently evaluating the impact on its results of operations, financial position and liquidity. A cross-functional team has been established and a third-party software solution has been obtained to assist with the implementation of the standard. Management is in the process of gathering necessary data and reviewing potential methods to calculate the expected credit losses. In June 2018, the FASB issued ASU No. 2018-07, “Compensation- Stock Compensation (Topic 718).” The ASU expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The ASU is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Corporation is in the process of evaluating the impact of this standard but does not expect this standard to have a material impact on its results of operations, financial position and liquidity. In August 2018, the FASB issued ASU No. 2018-15, “Intangibles-Goodwill and Other Internal-Use Software (Subtopic 350-40).” The ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). Implementation costs incurred in the application development stage are capitalized depending on the nature of the costs, while costs incurred during the preliminary project and post implementation stages are expensed as the activities are performed. The amendment also requires entities to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement and in the same income statement line item as the fees associated with the hosting element. The ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The Corporation is in the process of evaluating the impact of this standard but does not expect this standard to have a material impact on its results of operations, financial position and liquidity. |
Earnings Per Common Share (Poli
Earnings Per Common Share (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per common share are computed using the two-class method. Basic earnings per common share are computed by dividing net income allocated to common shares by the weighted-average number of shares outstanding during the applicable period, excluding outstanding participating securities. Participating securities include unvested restricted shares. Unvested restricted shares are considered participating securities because holders of these securities receive non-forfeitable dividends, or dividend equivalents, at the same rate as holders of the Corporation’s common stock. Diluted earnings per share are computed by dividing net income allocated to common shares, adjusted for reallocation of undistributed earnings of unvested restricted shares, by the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of common stock equivalents using the treasury stock method. |
Share-Based Compensation (Polic
Share-Based Compensation (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation, Option and Incentive Plans | The Corporation adopted the 2012 Equity Incentive Plan (the “Plan”) during the quarter ended June 30, 2012. The Plan is administered by the Compensation Committee of the Board of Directors of the Corporation and provides for the grant of equity ownership opportunities through incentive stock options and nonqualified stock options, restricted stock, restricted stock units, dividend equivalent units and any other type of award permitted by the Plan. As of September 30, 2018 , 169,036 shares were available for future grants under the Plan. Shares covered by awards that expire, terminate or lapse will again be available for the grant of awards under the Plan. The Corporation may issue new shares and shares from its treasury stock for shares delivered under the Plan. Restricted Stock Under the Plan, the Corporation may grant restricted stock, restricted stock units and other stock-based awards to plan participants, subject to forfeiture upon the occurrence of certain events until the dates specified in the participant’s award agreement. While restricted stock is subject to forfeiture, restricted stock participants may exercise full voting rights and will receive all dividends and other distributions paid with respect to the restricted shares. Restricted stock units do not have voting rights and are provided dividend equivalents. The restricted stock granted under the Plan is typically subject to a vesting period. Compensation expense is recognized over the requisite service period of generally four years for the entire award on a straight-line basis. Upon vesting of restricted stock, the benefit of tax deductions in excess of recognized compensation expense is reflected as an income tax benefit in the unaudited Consolidated Statements of Income. |
Loan and Lease Receivables, I_2
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Loans and Leases Receivable, Allowance for Loan Losses | To determine the level and composition of the allowance for loan and lease losses, the Corporation categorizes the portfolio into segments with similar risk characteristics. First, the Corporation evaluates loans and leases for potential impairment classification. The Corporation analyzes each loan and lease determined to be impaired on an individual basis to determine a specific reserve based upon the estimated value of the underlying collateral for collateral-dependent loans, or alternatively, the present value of expected cash flows. The Corporation applies historical trends from established risk factors to each category of loans and leases that has not been individually evaluated for the purpose of establishing the general portion of the allowance. |
Fair Value Disclosures (Policie
Fair Value Disclosures (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | The Corporation determines the fair values of its financial instruments based on the fair value hierarchy established in ASC Topic 820, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is defined as the price that would be received in an orderly transaction that is not a forced liquidation or distressed sale at the measurement date and is based on exit prices. Fair value includes assumptions about risk, such as nonperformance risk in liability fair values, and is a market-based measurement, not an entity-specific measurement. The standard describes three levels of inputs that may be used to measure fair value. Level 1 — Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Corporation has the ability to access at the measurement date. Level 2 — Level 2 inputs are inputs, other than quoted prices included with Level 1, that are observable for the asset or liability either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 — Level 3 inputs are supported by little or no market activity and are significant to the fair value of the assets or liabilities. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Corporation’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Impaired loans were written down to the fair value of their underlying collateral less costs to sell of $24.9 million and $15.1 million at September 30, 2018 and December 31, 2017 , respectively, through the establishment of specific reserves or by recording charge-offs when the carrying value exceeded the fair value of the underlying collateral of impaired loans. Valuation techniques consistent with the market approach, income approach or cost approach were used to measure fair value and primarily included observable inputs for the individual impaired loans being evaluated such as current appraisals, recent sales of similar assets or other observable market data, and are reflected within Level 2 of the hierarchy. In cases where an input is unobservable, typically when discounts are applied to appraisal values to adjust such values to current market conditions or to reflect net realizable value, the impaired loan balance is reflected within Level 3 of the hierarchy. The quantification of unobservable inputs for Level 3 impaired loan values range from 13% - 75% as of the measurement date of September 30, 2018 . The weighted-average of those unobservable inputs was 19% . The majority of the impaired loans in the Level 3 category are considered collateral dependent loans or are supported by a SBA guaranty. Foreclosed properties, upon initial recognition, are remeasured and reported at fair value through a charge-off to the allowance for loan and lease losses, if deemed necessary, based upon the fair value of the foreclosed property. The fair value of a foreclosed property, upon initial recognition, is estimated using a market approach or Level 2 inputs based on observable market data, typically a current appraisal, or Level 3 inputs based upon assumptions specific to the individual property or equipment. Level 3 inputs typically include unobservable inputs such as management applied discounts used to further reduce values to a net realizable value and may be used in situations when observable inputs become stale. Foreclosed property fair value inputs may transition to Level 1 upon receipt of an accepted offer for the sale of the related foreclosed property. Loan servicing rights represent the asset retained upon sale of the guaranteed portion of certain SBA loans. When SBA loans are sold, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. The servicing rights are subsequently measured using the amortization method, which requires amortization into interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. The Corporation periodically reviews this portfolio for impairment and engages a third-party valuation firm to assess the fair value of the overall servicing rights portfolio. Loan servicing rights do not trade in an active, open market with readily observable prices. While sales of loan servicing rights do occur, the precise terms and conditions typically are not readily available to allow for a “quoted price for similar assets” comparison. Accordingly, the Corporation utilizes an independent valuation from a third party which uses a discounted cash flow model to estimate the fair value of its loan servicing rights. The valuation model incorporates prepayment assumptions to project loan servicing rights cash flows based on the current interest rate scenario, which is then discounted to estimate an expected fair value of the loan servicing rights. The valuation model considers portfolio characteristics of the underlying serviced portion of the SBA loans and uses the following significant unobservable inputs: (1) constant prepayment rate (“CPR”) assumptions based on the SBA sold pools historical CPR as quoted in Bloomberg and (2) a discount rate of 10%. Due to the nature of the valuation inputs, loan servicing rights are classified in Level 3 of the fair value hierarchy. |
Fair Value Measurement | Disclosure of fair value information about financial instruments, for which it is practicable to estimate that value, is required whether or not recognized in the unaudited Consolidated Balance Sheets. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments. Certain financial instruments and all non-financial instruments are excluded from the disclosure requirements. Accordingly, the aggregate fair value amounts presented do not necessarily represent the underlying value of the Corporation. Securities: The fair value measurements of investment securities are determined by a third-party pricing service which considers observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, trade execution data, market consensus prepayment speeds, credit information and the securities’ terms and conditions, among other things. The fair value measurements are subject to independent verification by another pricing source on a quarterly basis to review for reasonableness. Any significant differences in pricing are reviewed with appropriate members of management who have the relevant technical expertise to assess the results. The Corporation has determined that these valuations are classified in Level 2 of the fair value hierarchy. When the independent pricing service does not provide a fair value measurement for a particular security, the Corporation will estimate the fair value based on specific information about each security. Fair values derived in this manner are classified in Level 3 of the fair value hierarchy. Loans Held for Sale: Loans held for sale, which consist of the guaranteed portions of SBA loans, are carried at the lower of cost or estimated fair value. The estimated fair value is based on what secondary markets are currently offering for portfolios with similar characteristics. Interest Rate Swaps: The carrying amount and fair value of existing derivative financial instruments are based upon independent valuation models, which use widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative contract. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The Corporation incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Corporation considers the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts and guarantees. Limitations: Fair value estimates are made at a discrete point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Corporation’s entire holding of a particular financial instrument. Because no market exists for a significant portion of the Corporation’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and are not considered in the estimates. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | The Corporation offers interest rate swap products directly to qualified commercial borrowers. The Corporation economically hedges client derivative transactions by entering into offsetting interest rate swap contracts executed with a third party. Derivative transactions executed as part of this program are not considered hedging instruments and are marked- to-market through earnings each period. The derivative contracts have mirror-image terms, which results in the positions’ changes in fair value primarily offsetting through earnings each period. The credit risk and risk of non-performance embedded in the fair value calculations is different between the dealer counterparties and the commercial borrowers which may result in a difference in the changes in the fair value of the mirror-image swaps. The Corporation incorporates credit valuation adjustments to appropriately reflect both its own non-performance risk and the counterparty’s risk in the fair value measurements. When evaluating the fair value of its derivative contracts for the effects of non-performance and credit risk, the Corporation considered the impact of netting and any applicable credit enhancements such as collateral postings, thresholds and guarantees. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 (Dollars in Thousands, Except Per Share Data) Basic earnings per common share Net income $ 5,301 $ 2,584 $ 12,239 $ 7,867 Less: earnings allocated to participating securities 77 35 180 105 Basic earnings allocated to common stockholders $ 5,224 $ 2,549 $ 12,059 $ 7,762 Weighted-average common shares outstanding, excluding participating securities 8,650,057 8,621,311 8,634,890 8,606,080 Basic earnings per common share $ 0.60 $ 0.30 $ 1.40 $ 0.90 Diluted earnings per common share Earnings allocated to common stockholders $ 5,224 $ 2,549 $ 12,059 $ 7,762 Weighted-average diluted common shares outstanding, excluding participating securities 8,650,057 8,621,311 8,634,890 8,606,080 Diluted earnings per common share $ 0.60 $ 0.30 $ 1.40 $ 0.90 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | Restricted stock activity for the year ended December 31, 2017 and the nine months ended September 30, 2018 was as follows: Number of Restricted Shares/Units Weighted Average Grant-Date Fair Value Nonvested balance as of December 31, 2016 116,245 $ 21.13 Granted 71,130 21.67 Vested (48,550 ) 21.51 Forfeited (8,384 ) 21.65 Nonvested balance as of December 31, 2017 130,441 21.43 Granted 51,870 22.61 Vested (41,703 ) 20.91 Forfeited (9,071 ) 22.09 Nonvested balance as of September 30, 2018 131,537 $ 22.01 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Share-based compensation expense related to restricted stock included in the unaudited Consolidated Statements of Income was as follows: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 (In Thousands) Share-based compensation expense $ 244 $ 268 $ 750 $ 811 |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities | The amortized cost and fair value of securities available-for-sale and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income were as follows: As of September 30, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In Thousands) Available-for-sale: U.S. government agency obligations - government-sponsored enterprises $ 999 $ — $ (15 ) $ 984 Municipal obligations 5,842 — (113 ) 5,729 Collateralized mortgage obligations - government issued 20,811 54 (585 ) 20,280 Collateralized mortgage obligations - government-sponsored enterprises 108,738 10 (3,129 ) 105,619 Other securities 2,450 — (67 ) 2,383 $ 138,840 $ 64 $ (3,909 ) $ 134,995 As of December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In Thousands) Available-for-sale: U.S. government agency obligations - government-sponsored enterprises $ 999 $ 1 $ — $ 1,000 Municipal obligations 9,494 2 (82 ) 9,414 Collateralized mortgage obligations - government issued 22,313 149 (213 ) 22,249 Collateralized mortgage obligations - government-sponsored enterprises 91,480 24 (1,199 ) 90,305 Other securities 3,040 3 (6 ) 3,037 $ 127,326 $ 179 $ (1,500 ) $ 126,005 |
Schedule of Held-to-maturity Securities | The amortized cost and fair value of securities held-to-maturity and the corresponding amounts of gross unrealized gains and losses were as follows: As of September 30, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In Thousands) Held-to-maturity: U.S. government agency obligations - government-sponsored enterprises $ 1,500 $ — $ (3 ) $ 1,497 Municipal obligations 21,135 20 (229 ) 20,926 Collateralized mortgage obligations - government issued 7,749 — (301 ) 7,448 Collateralized mortgage obligations - government-sponsored enterprises 9,566 — (307 ) 9,259 $ 39,950 $ 20 $ (840 ) $ 39,130 As of December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In Thousands) Held-to-maturity: U.S. government agency obligations - government-sponsored enterprises $ 1,499 $ — $ (9 ) $ 1,490 Municipal obligations 21,680 176 (34 ) 21,822 Collateralized mortgage obligations - government issued 9,072 1 (130 ) 8,943 Collateralized mortgage obligations - government-sponsored enterprises 5,527 — (86 ) 5,441 $ 37,778 $ 177 $ (259 ) $ 37,696 |
Investments Classified by Contractual Maturity | The amortized cost and fair value of securities by contractual maturity at September 30, 2018 are shown below. Actual maturities may differ from contractual maturities because issuers have the right to call or prepay certain obligations with or without call or prepayment penalties. Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value (In Thousands) Due in one year or less $ 1,518 $ 1,515 $ 2,272 $ 2,268 Due in one year through five years 20,998 20,448 11,664 11,581 Due in five through ten years 30,083 29,269 19,697 19,166 Due in over ten years 86,241 83,763 6,317 6,115 $ 138,840 $ 134,995 $ 39,950 $ 39,130 |
Schedule of Unrealized Loss on Investments | A summary of unrealized loss information for securities available-for-sale, categorized by security type and length of time for which the security has been in a continuous unrealized loss position, follows: As of September 30, 2018 Less than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In Thousands) Available-for-sale: U.S. government agency obligations - government-sponsored enterprises $ 984 $ 15 $ — $ — $ 984 $ 15 Municipal obligations 1,536 39 3,020 74 4,556 113 Collateralized mortgage obligations - government issued 8,675 223 7,906 362 16,581 585 Collateralized mortgage obligations - government-sponsored enterprises 56,226 1,171 46,996 1,958 103,222 3,129 Other securities 2,139 66 244 1 2,383 67 $ 69,560 $ 1,514 $ 58,166 $ 2,395 $ 127,726 $ 3,909 As of December 31, 2017 Less than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In Thousands) Available-for-sale: Municipal obligations $ 6,132 $ 43 $ 2,755 $ 39 $ 8,887 $ 82 Collateralized mortgage obligations - government issued 7,104 40 6,715 173 13,819 213 Collateralized mortgage obligations - government-sponsored enterprises 59,256 476 28,004 723 87,260 1,199 Other securities 1,954 6 — — 1,954 6 $ 74,446 $ 565 $ 37,474 $ 935 $ 111,920 $ 1,500 A summary of unrealized loss information for securities held-to-maturity, categorized by security type and length of time for which the security has been in a continuous unrealized loss position, follows: As of September 30, 2018 Less than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In Thousands) Held-to-maturity: U.S. government agency obligations - government-sponsored enterprises $ — $ — $ 1,497 $ 3 $ 1,497 $ 3 Municipal obligations 15,300 181 1,433 48 16,733 229 Collateralized mortgage obligations - government issued — — 7,448 301 7,448 301 Collateralized mortgage obligations - government-sponsored enterprises 4,723 120 4,536 187 9,259 307 $ 20,023 $ 301 $ 14,914 $ 539 $ 34,937 $ 840 As of December 31, 2017 Less than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In Thousands) Held-to-maturity: U.S. government agency obligations - government-sponsored enterprises $ — $ — $ 1,499 $ 9 $ 1,499 $ 9 Municipal obligations 3,723 27 259 7 3,982 34 Collateralized mortgage obligations - government issued 3,868 51 4,677 79 8,545 130 Collateralized mortgage obligations - government-sponsored enterprises — — 5,527 86 5,527 86 $ 7,591 $ 78 $ 11,962 $ 181 $ 19,553 $ 259 |
Loan and Lease Receivables, I_3
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Loan Composition Schedule | Loan and lease receivables consist of the following: September 30, December 31, (In Thousands) Commercial real estate: Commercial real estate — owner occupied $ 203,733 $ 200,387 Commercial real estate — non-owner occupied 487,842 470,236 Land development 45,009 40,154 Construction 132,271 125,157 Multi-family 174,664 136,978 1-4 family 35,729 44,976 Total commercial real estate 1,079,248 1,017,888 Commercial and industrial 457,932 429,002 Direct financing leases, net 31,090 30,787 Consumer and other: Home equity and second mortgages 8,388 7,262 Other 23,451 18,099 Total consumer and other 31,839 25,361 Total gross loans and leases receivable 1,600,109 1,503,038 Less: Allowance for loan and lease losses 20,455 18,763 Deferred loan fees 1,502 1,443 Loans and leases receivable, net $ 1,578,152 $ 1,482,832 |
Ownership of SBA Loans | he total amount of the Corporation’s ownership of SBA loans comprised of the following: September 30, December 31, (In Thousands) Retained, unguaranteed portions of sold SBA loans $ 26,640 $ 30,071 Other SBA loans (1) 20,183 22,254 Total SBA loans $ 46,823 $ 52,325 (1) Primarily consisted of SBA CAPLine, Express and impaired loans that were repurchased from the secondary market, all of which were not saleable as of September 30, 2018 and December 31, 2017 , respectively. |
Financing Receivable by Credit Quality Indicators | The following tables illustrate ending balances of the Corporation’s loan and lease portfolio, including impaired loans by class of receivable, and considering certain credit quality indicators: September 30, 2018 Category I II III IV Total (Dollars in Thousands) Commercial real estate: Commercial real estate — owner occupied $ 177,434 $ 4,925 $ 10,904 $ 10,470 $ 203,733 Commercial real estate — non-owner occupied 466,855 19,909 1,046 32 487,842 Land development 41,267 1,485 — 2,257 45,009 Construction 130,183 — 209 1,879 132,271 Multi-family 174,664 — — — 174,664 1-4 family 32,741 1,522 714 752 35,729 Total commercial real estate 1,023,144 27,841 12,873 15,390 1,079,248 Commercial and industrial 370,015 27,084 45,874 14,959 457,932 Direct financing leases, net 28,197 1,709 1,184 — 31,090 Consumer and other: Home equity and second mortgages 8,384 4 — — 8,388 Other 23,000 — — 451 23,451 Total consumer and other 31,384 4 — 451 31,839 Total gross loans and leases receivable $ 1,452,740 $ 56,638 $ 59,931 $ 30,800 $ 1,600,109 Category as a % of total portfolio 90.79 % 3.54 % 3.75 % 1.92 % 100.00 % December 31, 2017 Category I II III IV Total (Dollars in Thousands) Commercial real estate: Commercial real estate — owner occupied $ 166,018 $ 18,442 $ 8,850 $ 7,077 $ 200,387 Commercial real estate — non-owner occupied 441,246 27,854 1,102 34 470,236 Land development 36,470 1,057 — 2,627 40,154 Construction 121,528 757 — 2,872 125,157 Multi-family 136,978 — — — 136,978 1-4 family 34,598 7,735 1,220 1,423 44,976 Total commercial real estate 936,838 55,845 11,172 14,033 1,017,888 Commercial and industrial 341,875 25,344 49,453 12,330 429,002 Direct financing leases, net 28,866 342 1,579 — 30,787 Consumer and other: Home equity and second mortgages 7,250 8 — 4 7,262 Other 17,745 — — 354 18,099 Total consumer and other 24,995 8 — 358 25,361 Total gross loans and leases receivable $ 1,332,574 $ 81,539 $ 62,204 $ 26,721 $ 1,503,038 Category as a % of total portfolio 88.66 % 5.42 % 4.14 % 1.78 % 100.00 % |
Past Due Financing Receivables | The delinquency aging of the loan and lease portfolio by class of receivable was as follows: September 30, 2018 30-59 60-89 Greater Total Past Due Current Total Loans and Leases (Dollars in Thousands) Accruing loans and leases Commercial real estate: Owner occupied $ — $ 115 $ — $ 115 $ 193,148 $ 193,263 Non-owner occupied 742 — — 742 487,068 487,810 Land development — — — — 42,752 42,752 Construction — — — — 130,392 130,392 Multi-family — — — — 174,664 174,664 1-4 family — — — — 35,161 35,161 Commercial and industrial 1,944 — — 1,944 441,032 442,976 Direct financing leases, net — — — — 31,090 31,090 Consumer and other: Home equity and second mortgages — — — — 8,388 8,388 Other — — — — 23,000 23,000 Total 2,686 115 — 2,801 1,566,695 1,569,496 Non-accruing loans and leases Commercial real estate: Owner occupied 1,144 — 1,522 2,666 7,804 10,470 Non-owner occupied — — 32 32 — 32 Land development — — 121 121 2,136 2,257 Construction — — 1,879 1,879 — 1,879 Multi-family — — — — — — 1-4 family — — 529 529 39 568 Commercial and industrial 2,364 43 7,770 10,177 4,779 14,956 Direct financing leases, net — — — — — — Consumer and other: Home equity and second mortgages — — — — — — Other — — 291 291 160 451 Total 3,508 43 12,144 15,695 14,918 — 30,613 Total loans and leases Commercial real estate: Owner occupied 1,144 115 1,522 2,781 200,952 203,733 Non-owner occupied 742 — 32 774 487,068 487,842 Land development — — 121 121 44,888 45,009 Construction — — 1,879 1,879 130,392 132,271 Multi-family — — — — 174,664 174,664 1-4 family — — 529 529 35,200 35,729 Commercial and industrial 4,308 43 7,770 12,121 445,811 457,932 Direct financing leases, net — — — — 31,090 31,090 Consumer and other: Home equity and second mortgages — — — — 8,388 8,388 Other — — 291 291 23,160 23,451 Total $ 6,194 $ 158 $ 12,144 $ 18,496 $ 1,581,613 $ 1,600,109 Percent of portfolio 0.39 % 0.01 % 0.76 % 1.16 % 98.84 % 100.00 % December 31, 2017 30-59 60-89 Greater Total Past Due Current Total Loans and Leases (Dollars in Thousands) Accruing loans and leases Commercial real estate: Owner occupied $ — $ — $ — $ — $ 193,366 $ 193,366 Non-owner occupied — — — — 470,202 470,202 Land development — — — — 37,528 37,528 Construction — 196 — 196 122,089 122,285 Multi-family — — — — 136,978 136,978 1-4 family 496 — — 496 43,319 43,815 Commercial and industrial 1,169 197 — 1,366 415,315 416,681 Direct financing leases, net — — — — 30,787 30,787 Consumer and other: Home equity and second mortgages 106 — — 106 7,156 7,262 Other — — — — 17,745 17,745 Total 1,771 393 — 2,164 1,474,485 1,476,649 Non-accruing loans and leases Commercial real estate: Owner occupied 405 — 4,836 5,241 1,780 7,021 Non-owner occupied — — — — 34 34 Land development — — — — 2,626 2,626 Construction — — 2,872 2,872 — 2,872 Multi-family — — — — — — 1-4 family — — 948 948 213 1,161 Commercial and industrial 782 — 7,349 8,131 4,190 12,321 Direct financing leases, net — — — — — — Consumer and other: Home equity and second mortgages — — — — — — Other — — 345 345 9 354 Total 1,187 — 16,350 17,537 8,852 26,389 Total loans and leases Commercial real estate: Owner occupied 405 — 4,836 5,241 195,146 200,387 Non-owner occupied — — — — 470,236 470,236 Land development — — — — 40,154 40,154 Construction — 196 2,872 3,068 122,089 125,157 Multi-family — — — — 136,978 136,978 1-4 family 496 — 948 1,444 43,532 44,976 Commercial and industrial 1,951 197 7,349 9,497 419,505 429,002 Direct financing leases, net — — — — 30,787 30,787 Consumer and other: Home equity and second mortgages 106 — — 106 7,156 7,262 Other — — 345 345 17,754 18,099 Total $ 2,958 $ 393 $ 16,350 $ 19,701 $ 1,483,337 $ 1,503,038 Percent of portfolio 0.20 % 0.03 % 1.09 % 1.32 % 98.68 % 100.00 % |
Schedule of Financing Receivables, Non Accrual Status | The Corporation’s total impaired assets consisted of the following: September 30, December 31, (In Thousands) Non-accrual loans and leases Commercial real estate: Commercial real estate — owner occupied $ 10,470 $ 7,021 Commercial real estate — non-owner occupied 32 34 Land development 2,257 2,626 Construction 1,879 2,872 Multi-family — — 1-4 family 568 1,161 Total non-accrual commercial real estate 15,206 13,714 Commercial and industrial 14,956 12,321 Direct financing leases, net — — Consumer and other: Home equity and second mortgages — — Other 451 354 Total non-accrual consumer and other loans 451 354 Total non-accrual loans and leases 30,613 26,389 Foreclosed properties, net 1,454 1,069 Total non-performing assets 32,067 27,458 Performing troubled debt restructurings 187 332 Total impaired assets $ 32,254 $ 27,790 September 30, December 31, Total non-accrual loans and leases to gross loans and leases 1.91 % 1.76 % Total non-performing assets to total gross loans and leases plus foreclosed properties, net 2.00 1.83 Total non-performing assets to total assets 1.69 1.53 Allowance for loan and lease losses to gross loans and leases 1.28 1.25 Allowance for loan and lease losses to non-accrual loans and leases 66.82 71.10 |
Troubled Debt Restructurings on Financing Receivables | The following table provides the number of loans modified in a troubled debt restructuring and the pre- and post-modification recorded investment by class of receivable: For the Nine Months Ended September 30, 2017 Number of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment (Dollars in Thousands) Commercial and industrial 4 $ 4,374 $ 4,400 Consumer and other 1 17 17 Total 5 $ 4,391 $ 4,417 |
Impaired Financing Receivables | The following represents additional information regarding the Corporation’s impaired loans and leases, including performing troubled debt restructurings, by class: As of and for the Nine Months Ended September 30, 2018 Recorded (1) Unpaid Impairment Average (2) Foregone Interest Net (In Thousands) With no impairment reserve recorded: Commercial real estate: Owner occupied $ 9,326 $ 12,451 $ — $ 7,305 $ 614 $ 197 $ 417 Non-owner occupied 32 72 — 34 1 — 1 Land development 2,136 6,432 — 2,373 33 — 33 Construction — — — 2,039 — — — Multi-family — — — — — — — 1-4 family 752 1,022 — 961 40 76 (36 ) Commercial and industrial 4,434 5,094 — 3,133 870 442 428 Direct financing leases, net — — — — — — — Consumer and other: Home equity and second mortgages — — — 1 — 45 (45 ) Other 291 957 — 306 42 — 42 Total 16,971 26,028 — 16,152 1,600 760 840 With impairment reserve recorded: Commercial real estate: Owner occupied 1,144 1,144 193 255 64 — 64 Non-owner occupied — — — — — — — Land development 121 121 — 35 39 — 2 — — 2 Construction 1,879 2,872 — 379 207 — 162 — — 162 Multi-family — — — — — — — 1-4 family — — — — — — — Commercial and industrial 10,525 10,867 3,802 9,810 716 — 716 Direct financing leases, net — — — — — — — Consumer and other: Home equity and second mortgages — — — — — — — Other 160 160 160 8 — — — Total 13,829 15,164 4,569 10,319 944 — 944 Total: Commercial real estate: Owner occupied 10,470 13,595 193 7,560 678 197 481 Non-owner occupied 32 72 — 34 1 — 1 Land development 2,257 6,553 35 2,412 35 — 35 Construction 1,879 2,872 379 2,246 162 — 162 Multi-family — — — — — — — 1-4 family 752 1,022 — 961 40 76 (36 ) Commercial and industrial 14,959 15,961 3,802 12,943 1,586 442 1,144 Direct financing leases, net — — — — — — — Consumer and other: Home equity and second mortgages — — — 1 — 45 (45 ) Other 451 1,117 160 314 42 — 42 Grand total $ 30,800 $ 41,192 $ 4,569 $ 26,471 $ 2,544 $ 760 $ 1,784 (1) The recorded investment represents the unpaid principle balance net of any partial charge-offs. (2) Average recorded investment is calculated primarily using daily average balances. As of and for the Year Ended December 31, 2017 Recorded Investment (1) Unpaid Principal Balance Impairment Reserve Average Recorded Investment (2) Foregone Interest Income Interest Income Recognized Net Foregone Interest Income (In Thousands) With no impairment reserve recorded: Commercial real estate: Owner occupied $ 7,077 $ 7,077 $ — $ 5,549 $ 613 $ — $ 613 Non-owner occupied 34 75 — 1,830 97 226 (129 ) Land development 2,627 5,297 — 3,092 84 — 84 Construction — — — 2,000 134 214 (80 ) Multi-family — — — 1 — — — 1-4 family 1,423 1,706 — 2,146 53 7 46 Commercial and industrial 5,465 6,502 — 3,634 858 7 851 Direct financing leases, net — — — — — — — Consumer and other: Home equity and second mortgages 4 3 — 7 — — — Other 345 1,011 — 365 59 — 59 Total 16,975 21,671 — 18,624 1,898 454 1,444 With impairment reserve recorded: Commercial real estate: Owner occupied — — — — — — — Non-owner occupied — — — — — — — Land development — — — — — — — Construction 2,872 2,872 415 2,252 158 — 158 Multi-family — — — — — — — 1-4 family — — — — — — — Commercial and industrial 6,865 8,813 4,067 12,288 639 — 639 Direct financing leases, net — — — — — — — Consumer and other: Home equity and second mortgages — — — — — — — Other 9 9 9 — — — — Total 9,746 11,694 4,491 14,540 797 — 797 Total: Commercial real estate: Owner occupied 7,077 7,077 — 5,549 613 — 613 Non-owner occupied 34 75 — 1,830 97 226 (129 ) Land development 2,627 5,297 — 3,092 84 — 84 Construction 2,872 2,872 415 4,252 292 214 78 Multi-family — — — 1 — — — 1-4 family 1,423 1,706 — 2,146 53 7 46 Commercial and industrial 12,330 15,315 4,067 15,922 1,497 7 1,490 Direct financing leases, net — — — — — — — Consumer and other: Home equity and second mortgages 4 3 — 7 — — — Other 354 1,020 9 365 59 — 59 Grand total $ 26,721 $ 33,365 $ 4,491 $ 33,164 $ 2,695 $ 454 $ 2,241 (1) The recorded investment represents the unpaid principle balance net of any partial charge-offs. (2) Average recorded investment is calculated primarily using daily average balances. |
Allowance for Loan and Lease Losses by Portfolio Segment | A summary of the activity in the allowance for loan and lease losses by portfolio segment is as follows: As of and for the Three Months Ended September 30, 2018 Commercial Real Estate Commercial and Industrial Consumer and Other Total (In Thousands) Beginning balance $ 11,147 $ 9,237 $ 548 $ 20,932 Charge-offs (1,826 ) (75 ) (13 ) (1,914 ) Recoveries 7 1,974 2 1,983 Net (charge-offs) recoveries (1,819 ) 1,899 (11 ) 69 Provision for loan and lease losses 2,365 (3,252 ) 341 (546 ) Ending balance $ 11,693 $ 7,884 $ 878 $ 20,455 As of and for the Three Months Ended September 30, 2017 Commercial Real Estate Commercial and Industrial Consumer and Other Total (In Thousands) Beginning balance $ 12,003 $ 9,090 $ 584 $ 21,677 Charge-offs (8 ) (3,217 ) (5 ) (3,230 ) Recoveries 2 2 1 5 Net charge-offs (6 ) (3,215 ) (4 ) (3,225 ) Provision for loan and lease losses (2,462 ) 3,968 (35 ) 1,471 Ending balance $ 9,535 $ 9,843 $ 545 $ 19,923 As of and for the Nine Months Ended September 30, 2018 Commercial Real Estate Commercial and Industrial Consumer and Other Total (In Thousands) Beginning balance $ 10,131 $ 8,225 $ 407 $ 18,763 Charge-offs (4,122 ) (732 ) (50 ) (4,904 ) Recoveries 22 1,993 73 2,088 Net (charge-offs) recoveries (4,100 ) 1,261 23 (2,816 ) Provision for loan and lease losses 5,662 (1,602 ) 448 4,508 Ending balance $ 11,693 $ 7,884 $ 878 $ 20,455 As of and for the Nine Months Ended September 30, 2017 Commercial Real Estate Commercial and Industrial Consumer and Other Total (In Thousands) Beginning balance $ 12,384 $ 7,970 $ 558 $ 20,912 Charge-offs (126 ) (6,978 ) (92 ) (7,196 ) Recoveries 152 314 42 508 Net recoveries (charge-offs) 26 (6,664 ) (50 ) (6,688 ) Provision for loan and lease losses (2,875 ) 8,537 37 5,699 Ending balance $ 9,535 $ 9,843 $ 545 $ 19,923 |
Allowance for Loan and Lease Losses and Balances by Type of Allowance Methodology | The following tables provide information regarding the allowance for loan and lease losses and balances by type of allowance methodology. As of September 30, 2018 Commercial Real Estate Commercial and Industrial Consumer and Other Total (In Thousands) Allowance for loan and lease losses: Collectively evaluated for impairment $ 11,086 $ 4,082 $ 718 $ 15,886 Individually evaluated for impairment 607 3,802 160 4,569 Loans acquired with deteriorated credit quality — — — — Total $ 11,693 $ 7,884 $ 878 $ 20,455 Loans and lease receivables: Collectively evaluated for impairment $ 1,063,858 $ 474,063 $ 31,388 $ 1,569,309 Individually evaluated for impairment 15,144 14,956 451 30,551 Loans acquired with deteriorated credit quality 246 3 — 249 Total $ 1,079,248 $ 489,022 $ 31,839 $ 1,600,109 As of December 31, 2017 Commercial Real Estate Commercial and Industrial Consumer and Other Total (In Thousands) Allowance for loan and lease losses: Collectively evaluated for impairment $ 9,716 $ 4,158 $ 398 $ 14,272 Individually evaluated for impairment 415 4,067 9 4,491 Loans acquired with deteriorated credit quality — — — — Total $ 10,131 $ 8,225 $ 407 $ 18,763 Loans and lease receivables: Collectively evaluated for impairment $ 1,003,855 $ 447,459 $ 25,003 $ 1,476,317 Individually evaluated for impairment 13,506 12,324 358 26,188 Loans acquired with deteriorated credit quality 527 6 — 533 Total $ 1,017,888 $ 459,789 $ 25,361 $ 1,503,038 |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | A summary of accrued interest receivable and other assets is as follows: September 30, 2018 December 31, 2017 (In Thousands) Accrued interest receivable $ 5,678 $ 5,019 Net deferred tax asset 2,173 2,584 Investment in historic development entities 1,849 1,161 Investment in a community development entity 6,209 6,591 Investment in limited partnerships 3,888 4,261 Investment in Trust II 315 315 Fair value of interest rate swaps 2,470 942 Prepaid expenses 3,266 3,091 Other assets 5,445 5,884 Total accrued interest receivable and other assets $ 31,293 $ 29,848 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Deposits [Abstract] | |
Deposits | The composition of deposits is shown below. Average balances represent year-to-date averages. September 30, 2018 December 31, 2017 Balance Average Balance Average Rate Balance Average Balance Average Rate (Dollars in Thousands) Non-interest-bearing transaction accounts $ 233,915 $ 236,208 — % $ 277,445 $ 230,907 — % Interest-bearing transaction accounts 256,303 278,042 0.87 217,625 226,540 0.59 Money market accounts 475,322 487,395 0.91 515,077 583,241 0.47 Certificates of deposit 111,311 80,630 1.42 76,199 56,667 1.00 Wholesale deposits 332,052 302,262 1.88 307,985 361,712 1.70 Total deposits $ 1,408,903 $ 1,384,537 0.99 $ 1,394,331 $ 1,459,067 0.74 |
FHLB Advances, Other Borrowin_2
FHLB Advances, Other Borrowings and Junior Subordinated Notes Payable (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The composition of borrowed funds is shown below. Average balances represent year-to-date averages. September 30, 2018 December 31, 2017 Balance Weighted Average Balance Weighted Average Rate Balance Weighted Average Balance Weighted Average Rate (Dollars in Thousands) Federal funds purchased $ — $ 159 2.43 % $ — $ 66 1.22 % FHLB advances 257,000 277,866 2.01 183,500 105,276 1.40 Line of credit — 5 4.46 10 328 3.64 Other borrowings (1) 675 675 8.12 675 1,241 14.50 Subordinated notes payable 23,755 23,732 6.65 23,713 23,161 6.93 Junior subordinated notes 10,029 10,023 11.07 10,019 10,011 11.11 $ 291,459 $ 312,460 2.67 $ 217,917 $ 140,083 3.14 Short-term borrowings $ 105,500 $ 37,010 Long-term borrowings 185,959 180,907 $ 291,459 $ 217,917 |
Commitments and Contingencies_2
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of SBA Recourse Reserve | The summary of the activity in the SBA recourse reserve is as follows: As of and for the Nine Months Ended September 30, 2018 September 30, 2017 (In Thousands) Balance at the beginning of the period $ 2,849 $ 1,750 SBA recourse provision 118 2,095 Charge-offs, net (238 ) (1,141 ) Balance at the end of the period $ 2,729 $ 2,704 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring Basis | Assets and liabilities measured at fair value on a recurring basis, segregated by fair value hierarchy level, are summarized below: September 30, 2018 Fair Value Measurements Using Level 1 Level 2 Level 3 Total (In Thousands) Assets: Securities available-for-sale: U.S. government agency obligations - government-sponsored enterprises $ — $ 984 $ — $ 984 Municipal obligations — 5,729 — 5,729 Collateralized mortgage obligations - government issued — 20,280 — 20,280 Collateralized mortgage obligations - government-sponsored enterprises — 105,619 — 105,619 Other securities — 2,383 — 2,383 Interest rate swaps — 2,470 — 2,470 Liabilities: Interest rate swaps — 1,180 — 1,180 December 31, 2017 Fair Value Measurements Using Level 1 Level 2 Level 3 Total (In Thousands) Assets: Securities available-for-sale: U.S. government agency obligations - government-sponsored enterprises $ — $ 1,000 $ — $ 1,000 Municipal obligations — 9,414 — 9,414 Collateralized mortgage obligations - government issued — 22,249 — 22,249 Collateralized mortgage obligations - government-sponsored enterprises — 90,305 — 90,305 Other securities — 3,037 — 3,037 Interest rate swaps — 942 — 942 Liabilities: Interest rate swaps — 1,064 — 1,064 |
Fair Value Measurements, Nonrecurring Basis | Assets and liabilities measured at fair value on a non-recurring basis, segregated by fair value hierarchy are summarized below: September 30, 2018 Fair Value Measurements Using Level 1 Level 2 Level 3 Total (In Thousands) Impaired loans $ — $ 20,260 $ 4,680 $ 24,940 Foreclosed properties — 1,454 — 1,454 Loan servicing rights — — 1,354 1,354 December 31, 2017 Fair Value Measurements Using Level 1 Level 2 Level 3 Total (In Thousands) Impaired loans $ — $ 10,063 $ 5,084 $ 15,147 Foreclosed properties — 1,069 — 1,069 |
Fair Value, by Balance Sheet Grouping | Fair value estimates, methods and assumptions, consistent with exit price concepts for fair value measurements, are set forth below: September 30, 2018 Carrying Amount Fair Value Total Level 1 Level 2 Level 3 (In Thousands) Financial assets: Cash and cash equivalents $ 40,293 $ 40,293 $ 26,993 $ 13,300 $ — Securities available-for-sale 134,995 134,995 — 134,995 — Securities held-to-maturity 39,950 39,130 — 39,130 — Loans held for sale 4,712 5,183 — 5,183 — Loans and lease receivables, net 1,578,152 1,569,571 — 20,260 1,549,311 Federal Home Loan Bank stock 6,890 N/A N/A N/A N/A Accrued interest receivable 5,678 5,678 5,678 — — Interest rate swaps 2,470 2,470 — 2,470 — Financial liabilities: Deposits 1,408,903 1,405,963 965,540 440,423 — Federal Home Loan Bank advances and other borrowings 281,430 276,601 — 276,601 — Junior subordinated notes 10,029 9,951 — — 9,951 Accrued interest payable 3,407 3,407 3,407 — — Interest rate swaps 1,180 1,180 — 1,180 — Off-balance-sheet items: Standby letters of credit 53 53 — — 53 N/A = The fair value is not applicable due to restrictions placed on transferability December 31, 2017 Carrying Amount Fair Value Total Level 1 Level 2 Level 3 (In Thousands) Financial assets: Cash and cash equivalents $ 52,539 $ 52,539 $ 35,114 $ 17,425 $ — Securities available-for-sale 126,005 126,005 — 126,005 — Securities held-to-maturity 37,778 37,696 — 37,696 — Loans held for sale 2,194 2,413 — 2,413 — Loans and lease receivables, net 1,482,832 1,482,664 — 10,063 1,472,601 Federal Home Loan Bank stock 5,670 N/A N/A N/A N/A Accrued interest receivable 5,019 5,019 5,019 — — Interest rate swaps 942 942 — 942 — Financial liabilities: Deposits 1,394,331 1,391,801 1,010,147 381,654 — Federal Home Loan Bank advances and other borrowings 207,898 206,441 — 206,441 — Junior subordinated notes 10,019 8,836 — — 8,836 Accrued interest payable 2,095 2,095 2,095 — — Interest rate swaps 1,064 1,064 — 1,064 — Off-balance-sheet items: Standby letters of credit 75 75 — — 75 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The table below provides information about the balance sheet location and fair value of the Corporation’s derivative instruments: Interest Rate Swap Contracts Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In Thousands) Derivatives not designated as hedging instruments September 30, 2018 Accrued interest receivable and other assets $ 1,180 Accrued interest payable and other liabilities $ 1,180 December 31, 2017 Accrued interest receivable and other assets $ 942 Accrued interest payable and other liabilities $ 942 Derivatives designated as hedging instruments September 30, 2018 Accrued interest receivable and other assets $ 1,290 Accumulated other comprehensive income (1) $ 1,290 December 31, 2017 Accumulated other comprehensive income (1) $ 122 Accrued interest payable and other liabilities $ 122 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Regulatory Capital Requirements [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The following tables summarize both the Corporation’s and Bank’s capital ratios and the ratios required by their federal regulators: Actual Minimum Required for Capital Adequacy Purposes For Capital Adequacy Purposes Plus Capital Conservation Buffer Minimum Required to Be Well Amount Ratio Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) As of September 30, 2018 Total capital (to risk-weighted assets) Consolidated $ 225,160 12.05 % $ 149,515 8.00 % $ 184,558 9.875 % N/A N/A First Business Bank 217,620 11.70 148,847 8.00 183,733 9.875 186,058 10.00 Tier 1 capital (to risk-weighted assets) Consolidated $ 178,220 9.54 % $ 112,136 6.00 % $ 147,179 7.875 % N/A N/A First Business Bank 194,435 10.45 111,635 6.00 146,521 7.875 148,847 8.00 Common equity tier 1 capital (to risk-weighted assets) Consolidated $ 168,191 9.00 % $ 84,102 4.50 % $ 119,145 6.375 % N/A N/A First Business Bank 194,435 10.45 83,726 4.50 118,612 6.375 120,938 6.50 Tier 1 leverage capital (to adjusted assets) Consolidated $ 178,220 9.34 % $ 76,324 4.00 % $ 76,324 4.00 % N/A N/A First Business Bank 194,435 10.24 75,968 4.00 75,968 4.00 94,961 5.00 Actual Minimum Required for Capital Adequacy Purposes For Capital Adequacy Purposes Plus Capital Conservation Buffer Minimum Required to Be Well Amount Ratio Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) As of December 31, 2017 Total capital (to risk-weighted assets) Consolidated $ 214,501 11.98 % $ 143,219 8.00 % $ 165,597 9.250 % N/A N/A First Business Bank 207,986 11.66 142,736 8.00 165,038 9.250 $ 178,420 10.00 % Tier 1 capital (to risk-weighted assets) Consolidated $ 169,176 9.45 % $ 107,414 6.00 % $ 129,792 7.250 % N/A N/A First Business Bank 186,374 10.45 107,052 6.00 129,354 7.250 $ 142,736 8.00 % Common equity tier 1 capital (to risk-weighted assets) Consolidated $ 159,157 8.89 % $ 80,561 4.50 % $ 102,939 5.750 % N/A N/A First Business Bank 186,374 10.45 80,289 4.50 102,591 5.750 $ 115,973 6.50 % Tier 1 leverage capital (to adjusted assets) Consolidated $ 169,176 9.54 % $ 70,920 4.00 % $ 70,920 4.00 % N/A N/A First Business Bank 186,374 10.56 70,617 4.00 70,617 4.00 $ 88,272 5.00 % |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies Narrative Disclosures (Details) $ in Millions | Sep. 30, 2018USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating leases | 29 |
Operating Leases, Future Minimum Payments Receivable | $ 10.6 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive employee share based awards | 0 | 0 | 0 | 0 |
Basic earnings per common share | ||||
Net income | $ 5,301 | $ 2,584 | $ 12,239 | $ 7,867 |
Less: earnings allocated to participating securities | 77 | 35 | 180 | 105 |
Basic earnings allocated to common stockholders | $ 5,224 | $ 2,549 | $ 12,059 | $ 7,762 |
Weighted-average common shares outstanding, excluding participating securities | 8,650,057 | 8,621,311 | 8,634,890 | 8,606,080 |
Basic earnings per common share | $ 0.60 | $ 0.30 | $ 1.40 | $ 0.90 |
Diluted earnings per common share | ||||
Diluted earnings allocated to common shareholders | $ 5,224 | $ 2,549 | $ 12,059 | $ 7,762 |
Weighted-average diluted common shares outstanding, excluding participating securities | 8,650,057 | 8,621,311 | 8,634,890 | 8,606,080 |
Diluted earnings per common share | $ 0.60 | $ 0.30 | $ 1.40 | $ 0.90 |
Share-Based Compensation (Restr
Share-Based Compensation (Restricted Share Activity) (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Number of Restricted Shares | ||
Nonvested balance, beginning | 130,441 | 116,245 |
Granted | 51,870 | 71,130 |
Vested | (41,703) | (48,550) |
Forfeited | (9,071) | (8,384) |
Nonvested balance, ending | 131,537 | |
Weighted Average Grant-Date Fair Value | ||
Nonvested balance, beginning | $ 21.43 | $ 21.13 |
Granted | 22.61 | 21.67 |
Vested | 20.91 | 21.51 |
Forfeited | 22.09 | $ 21.65 |
Nonvested balance, ending | $ 22.01 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative Disclosures) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($)shares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Number of shares available for grant | shares | 169,036 |
Deferred compensation expense yet to be recognized | $ | $ 2.7 |
Period of time that deferred compensation expense will be recognized | 2 years 11 months 28 days |
Share-Based Compensation Share-
Share-Based Compensation Share-Based Compensation (Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Share-based compensation | $ 244 | $ 268 | $ 750 | $ 811 |
Securities (Available-for-Sale
Securities (Available-for-Sale Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities | ||
Amortized cost | $ 138,840 | $ 127,326 |
Gross unrealized holding gains | 64 | 179 |
Gross unrealized holding losses | (3,909) | (1,500) |
Fair Value | 134,995 | 126,005 |
U.S. government agency obligations - government-sponsored enterprises | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 999 | 999 |
Gross unrealized holding gains | 0 | 1 |
Gross unrealized holding losses | (15) | 0 |
Fair Value | 984 | 1,000 |
Municipal obligations | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 5,842 | 9,494 |
Gross unrealized holding gains | 0 | 2 |
Gross unrealized holding losses | (113) | (82) |
Fair Value | 5,729 | 9,414 |
Collateralized mortgage obligations - government issued | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 20,811 | 22,313 |
Gross unrealized holding gains | 54 | 149 |
Gross unrealized holding losses | (585) | (213) |
Fair Value | 20,280 | 22,249 |
Collateralized mortgage obligations - government-sponsored enterprises | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 108,738 | 91,480 |
Gross unrealized holding gains | 10 | 24 |
Gross unrealized holding losses | (3,129) | (1,199) |
Fair Value | 105,619 | 90,305 |
Other securities | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 2,450 | 3,040 |
Gross unrealized holding gains | 0 | 3 |
Gross unrealized holding losses | (67) | (6) |
Fair Value | $ 2,383 | $ 3,037 |
Securities (Held-to-Maturity Se
Securities (Held-to-Maturity Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule of Held-to-maturity Securities | ||
Amortized cost | $ 39,950 | $ 37,778 |
Gross unrecognized holding gains | 20 | 177 |
Gross unrecognized holding losses | (840) | (259) |
Estimated Fair Value | 39,130 | 37,696 |
U.S. government agency obligations - government-sponsored enterprises | ||
Schedule of Held-to-maturity Securities | ||
Amortized cost | 1,500 | 1,499 |
Gross unrecognized holding gains | 0 | 0 |
Gross unrecognized holding losses | (3) | (9) |
Estimated Fair Value | 1,497 | 1,490 |
Municipal obligations | ||
Schedule of Held-to-maturity Securities | ||
Amortized cost | 21,135 | 21,680 |
Gross unrecognized holding gains | 20 | 176 |
Gross unrecognized holding losses | (229) | (34) |
Estimated Fair Value | 20,926 | 21,822 |
Collateralized mortgage obligations - government issued | ||
Schedule of Held-to-maturity Securities | ||
Amortized cost | 7,749 | 9,072 |
Gross unrecognized holding gains | 0 | 1 |
Gross unrecognized holding losses | (301) | (130) |
Estimated Fair Value | 7,448 | 8,943 |
Collateralized mortgage obligations - government-sponsored enterprises | ||
Schedule of Held-to-maturity Securities | ||
Amortized cost | 9,566 | 5,527 |
Gross unrecognized holding gains | 0 | 0 |
Gross unrecognized holding losses | (307) | (86) |
Estimated Fair Value | $ 9,259 | $ 5,441 |
Securities (Contractual Maturit
Securities (Contractual Maturity) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Available-for-Sale, Amortized Cost | ||
Due in one year or less | $ 1,518 | |
Due in one year through five years | 20,998 | |
Due in five through ten years | 30,083 | |
Due in over ten years | 86,241 | |
Amortized cost | 138,840 | $ 127,326 |
Available-for-Sale, Estimated Fair Value | ||
Due in one year or less | 1,515 | |
Due in one year through five years | 20,448 | |
Due in five through ten years | 29,269 | |
Due in over ten years | 83,763 | |
Estimated fair value | 134,995 | 126,005 |
Held-to-Maturity, Amortized Cost | ||
Due in one year or less | 2,272 | |
Due in one year through five years | 11,664 | |
Due in five through ten years | 19,697 | |
Due in over ten years | 6,317 | |
Amortized cost | 39,950 | 37,778 |
Held-to-Maturity, Estimated Fair Value | ||
Due in one year or less | 2,268 | |
Due in one year through five years | 11,581 | |
Due in five through ten years | 19,166 | |
Due in over ten years | 6,115 | |
Estimated Fair Value | $ 39,130 | $ 37,696 |
Securities (Unrealized Losses A
Securities (Unrealized Losses Available for Sale) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value | ||
Fair Value Less than 12 Months | $ 69,560 | $ 74,446 |
Fair Value 12 Months or Longer | 58,166 | 37,474 |
Total Fair Value | 127,726 | 111,920 |
Unrealized Loss Less than 12 Months | 1,514 | 565 |
Unrealized Loss 12 Months or Longer | 2,395 | 935 |
Total Unrealized Loss | 3,909 | 1,500 |
U.S. government agency obligations - government-sponsored enterprises | ||
Fair Value | ||
Fair Value Less than 12 Months | 984 | |
Fair Value 12 Months or Longer | 0 | |
Total Fair Value | 984 | |
Unrealized Loss Less than 12 Months | 15 | |
Unrealized Loss 12 Months or Longer | 0 | |
Total Unrealized Loss | 15 | |
Municipal obligations | ||
Fair Value | ||
Fair Value Less than 12 Months | 1,536 | 6,132 |
Fair Value 12 Months or Longer | 3,020 | 2,755 |
Total Fair Value | 4,556 | 8,887 |
Unrealized Loss Less than 12 Months | 39 | 43 |
Unrealized Loss 12 Months or Longer | 74 | 39 |
Total Unrealized Loss | 113 | 82 |
Collateralized mortgage obligations - government issued | ||
Fair Value | ||
Fair Value Less than 12 Months | 8,675 | 7,104 |
Fair Value 12 Months or Longer | 7,906 | 6,715 |
Total Fair Value | 16,581 | 13,819 |
Unrealized Loss Less than 12 Months | 223 | 40 |
Unrealized Loss 12 Months or Longer | 362 | 173 |
Total Unrealized Loss | 585 | 213 |
Collateralized mortgage obligations - government-sponsored enterprises | ||
Fair Value | ||
Fair Value Less than 12 Months | 56,226 | 59,256 |
Fair Value 12 Months or Longer | 46,996 | 28,004 |
Total Fair Value | 103,222 | 87,260 |
Unrealized Loss Less than 12 Months | 1,171 | 476 |
Unrealized Loss 12 Months or Longer | 1,958 | 723 |
Total Unrealized Loss | 3,129 | 1,199 |
Other securities | ||
Fair Value | ||
Fair Value Less than 12 Months | 2,139 | 1,954 |
Fair Value 12 Months or Longer | 244 | 0 |
Total Fair Value | 2,383 | 1,954 |
Unrealized Loss Less than 12 Months | 66 | 6 |
Unrealized Loss 12 Months or Longer | 1 | 0 |
Total Unrealized Loss | $ 67 | $ 6 |
Securities (Unrealized Losses H
Securities (Unrealized Losses Held-to-Maturity) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value | ||
Fair Value Less than 12 months | $ 20,023 | $ 7,591 |
Fair Value 12 months or longer | 14,914 | 11,962 |
Total Fair Value | 34,937 | 19,553 |
Unrealized Loss Less than 12 months | 301 | 78 |
Unrealized Loss 12 months or longer | 539 | 181 |
Total Unrealized Loss | 840 | 259 |
U.S. government agency obligations - government-sponsored enterprises | ||
Fair Value | ||
Fair Value Less than 12 months | 0 | 0 |
Fair Value 12 months or longer | 1,497 | 1,499 |
Total Fair Value | 1,497 | 1,499 |
Unrealized Loss Less than 12 months | 0 | 0 |
Unrealized Loss 12 months or longer | 3 | 9 |
Total Unrealized Loss | 3 | 9 |
Municipal obligations | ||
Fair Value | ||
Fair Value Less than 12 months | 15,300 | 3,723 |
Fair Value 12 months or longer | 1,433 | 259 |
Total Fair Value | 16,733 | 3,982 |
Unrealized Loss Less than 12 months | 181 | 27 |
Unrealized Loss 12 months or longer | 48 | 7 |
Total Unrealized Loss | 229 | 34 |
Collateralized mortgage obligations - government issued | ||
Fair Value | ||
Fair Value Less than 12 months | 0 | 3,868 |
Fair Value 12 months or longer | 7,448 | 4,677 |
Total Fair Value | 7,448 | 8,545 |
Unrealized Loss Less than 12 months | 0 | 51 |
Unrealized Loss 12 months or longer | 301 | 79 |
Total Unrealized Loss | 301 | 130 |
Collateralized mortgage obligations - government-sponsored enterprises | ||
Fair Value | ||
Fair Value Less than 12 months | 4,723 | 0 |
Fair Value 12 months or longer | 4,536 | 5,527 |
Total Fair Value | 9,259 | 5,527 |
Unrealized Loss Less than 12 months | 120 | 0 |
Unrealized Loss 12 months or longer | 187 | 86 |
Total Unrealized Loss | $ 307 | $ 86 |
Securities (Narrative Disclosur
Securities (Narrative Disclosures) (Details) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018USD ($)securities | Sep. 30, 2017USD ($)securities | Dec. 31, 2017USD ($) | |
Financing Receivable, Impaired | |||
Number of available-for-sale securities sold | 0 | 14 | |
Available-for-sale Securities, Restricted | $ | $ 2,400 | $ 2,800 | |
Number of available-for-sales securities in an unrealized loss position | 168 | ||
Number of available-for-sale securities in an unrealized loss position, twelve months or greater | 87 | ||
Other than temporary impairment on available-for-sale securities recorded on the income statement | $ | $ 0 | $ 0 | |
Number of held-to-maturity securities in an unrealized loss position | 94 | ||
Number of held-to-maturity Securities in an unrealized loss position, twelve months or greater | 25 | ||
Other than temporary impairment on held-to-maturity securities recorded on the income statement | $ | $ 0 | $ 0 |
Loan and Lease Receivables, I_4
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Loan Composition) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||||||
Commercial real estate — owner occupied | $ 203,733 | $ 200,387 | ||||
Commercial real estate — non-owner occupied | 487,842 | 470,236 | ||||
Land development | 45,009 | 40,154 | ||||
Construction | 132,271 | 125,157 | ||||
Multi-family | 174,664 | 136,978 | ||||
1-4 family | 35,729 | 44,976 | ||||
Total commercial real estate | 1,079,248 | 1,017,888 | ||||
Commercial and industrial | 457,932 | 429,002 | ||||
Direct financing leases, net | 31,090 | 30,787 | ||||
Home equity and second mortgages | 8,388 | 7,262 | ||||
Other | 23,451 | 18,099 | ||||
Total consumer and other | 31,839 | 25,361 | ||||
Total gross loans and leases receivable | 1,600,109 | 1,503,038 | ||||
Allowance for loan and lease losses | 20,455 | $ 20,932 | 18,763 | $ 19,923 | $ 21,677 | $ 20,912 |
Deferred loan fees | 1,502 | 1,443 | ||||
Loans and leases receivable, net | $ 1,578,152 | $ 1,482,832 |
Loan and Lease Receivables, I_5
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (SBA Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | ||
Unguaranteed Portion of Sold SBA loans Retained | $ 26,640 | $ 30,071 |
Other SBA Loans | 20,183 | 22,254 |
Small Business Administration Loans | $ 46,823 | $ 52,325 |
Loan and Lease Receivables, I_6
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Loans by Credit Quality Indicator) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment | ||
Commercial real estate — owner occupied | $ 203,733 | $ 200,387 |
Commercial real estate — non-owner occupied | 487,842 | 470,236 |
Land development | 45,009 | 40,154 |
Construction | 132,271 | 125,157 |
Multi-family | 174,664 | 136,978 |
1-4 family | 35,729 | 44,976 |
Total commercial real estate | 1,079,248 | 1,017,888 |
Commercial and industrial | 457,932 | 429,002 |
Direct financing leases, net | 31,090 | 30,787 |
Home equity and second mortgages | 8,388 | 7,262 |
Other | 23,451 | 18,099 |
Total consumer and other | 31,839 | 25,361 |
Total gross loans and leases receivable | $ 1,600,109 | $ 1,503,038 |
Category as a % of total portfolio | 100.00% | 100.00% |
Category I | ||
Financing Receivable, Recorded Investment | ||
Commercial real estate — owner occupied | $ 177,434 | $ 166,018 |
Commercial real estate — non-owner occupied | 466,855 | 441,246 |
Land development | 41,267 | 36,470 |
Construction | 130,183 | 121,528 |
Multi-family | 174,664 | 136,978 |
1-4 family | 32,741 | 34,598 |
Total commercial real estate | 1,023,144 | 936,838 |
Commercial and industrial | 370,015 | 341,875 |
Direct financing leases, net | 28,197 | 28,866 |
Home equity and second mortgages | 8,384 | 7,250 |
Other | 23,000 | 17,745 |
Total consumer and other | 31,384 | 24,995 |
Total gross loans and leases receivable | $ 1,452,740 | $ 1,332,574 |
Category as a % of total portfolio | 90.79% | 88.66% |
Category II | ||
Financing Receivable, Recorded Investment | ||
Commercial real estate — owner occupied | $ 4,925 | $ 18,442 |
Commercial real estate — non-owner occupied | 19,909 | 27,854 |
Land development | 1,485 | 1,057 |
Construction | 0 | 757 |
Multi-family | 0 | 0 |
1-4 family | 1,522 | 7,735 |
Total commercial real estate | 27,841 | 55,845 |
Commercial and industrial | 27,084 | 25,344 |
Direct financing leases, net | 1,709 | 342 |
Home equity and second mortgages | 4 | 8 |
Other | 0 | 0 |
Total consumer and other | 4 | 8 |
Total gross loans and leases receivable | $ 56,638 | $ 81,539 |
Category as a % of total portfolio | 3.54% | 5.42% |
Category III | ||
Financing Receivable, Recorded Investment | ||
Commercial real estate — owner occupied | $ 10,904 | $ 8,850 |
Commercial real estate — non-owner occupied | 1,046 | 1,102 |
Land development | 0 | 0 |
Construction | 209 | 0 |
Multi-family | 0 | 0 |
1-4 family | 714 | 1,220 |
Total commercial real estate | 12,873 | 11,172 |
Commercial and industrial | 45,874 | 49,453 |
Direct financing leases, net | 1,184 | 1,579 |
Home equity and second mortgages | 0 | 0 |
Other | 0 | 0 |
Total consumer and other | 0 | 0 |
Total gross loans and leases receivable | $ 59,931 | $ 62,204 |
Category as a % of total portfolio | 3.75% | 4.14% |
Category IV | ||
Financing Receivable, Recorded Investment | ||
Commercial real estate — owner occupied | $ 10,470 | $ 7,077 |
Commercial real estate — non-owner occupied | 32 | 34 |
Land development | 2,257 | 2,627 |
Construction | 1,879 | 2,872 |
Multi-family | 0 | 0 |
1-4 family | 752 | 1,423 |
Total commercial real estate | 15,390 | 14,033 |
Commercial and industrial | 14,959 | 12,330 |
Direct financing leases, net | 0 | 0 |
Home equity and second mortgages | 0 | 4 |
Other | 451 | 354 |
Total consumer and other | 451 | 358 |
Total gross loans and leases receivable | $ 30,800 | $ 26,721 |
Category as a % of total portfolio | 1.92% | 1.78% |
Loan and Lease Receivables, I_7
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Past Due Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | $ 18,496 | $ 19,701 |
Current | 1,581,613 | 1,483,337 |
Non-accrual loans and leases | 30,613 | 26,389 |
Total gross loans and leases receivable | $ 1,600,109 | $ 1,503,038 |
30 to 59 days past due, percent of total portfolio | 0.39% | 0.20% |
60 to 89 days past due, percent of total portfolio | 0.01% | 0.03% |
Greater than 90 days past due, percent of portfolio | 0.76% | 1.09% |
Past due, percent of total portfolio | 1.16% | 1.32% |
Current, percent of total portfolio | 98.84% | 98.68% |
Gross loans, percent of total portfolio | 100.00% | 100.00% |
Commercial real estate — owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | $ 2,781 | $ 5,241 |
Current | 200,952 | 195,146 |
Non-accrual loans and leases | 10,470 | 7,021 |
Total gross loans and leases receivable | 203,733 | 200,387 |
Commercial real estate — non-owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 774 | 0 |
Current | 487,068 | 470,236 |
Non-accrual loans and leases | 32 | 34 |
Total gross loans and leases receivable | 487,842 | 470,236 |
Land development | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 121 | 0 |
Current | 44,888 | 40,154 |
Non-accrual loans and leases | 2,257 | 2,626 |
Total gross loans and leases receivable | 45,009 | 40,154 |
Construction | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 1,879 | 3,068 |
Current | 130,392 | 122,089 |
Non-accrual loans and leases | 1,879 | 2,872 |
Total gross loans and leases receivable | 132,271 | 125,157 |
Multi-family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
Current | 174,664 | 136,978 |
Non-accrual loans and leases | 0 | 0 |
Total gross loans and leases receivable | 174,664 | 136,978 |
1-4 family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 529 | 1,444 |
Current | 35,200 | 43,532 |
Non-accrual loans and leases | 568 | 1,161 |
Total gross loans and leases receivable | 35,729 | 44,976 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 12,121 | 9,497 |
Current | 445,811 | 419,505 |
Non-accrual loans and leases | 14,956 | 12,321 |
Total gross loans and leases receivable | 457,932 | 429,002 |
Direct financing leases, net | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
Current | 31,090 | 30,787 |
Non-accrual loans and leases | 0 | 0 |
Total gross loans and leases receivable | 31,090 | 30,787 |
Home equity and second mortgages | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 106 |
Current | 8,388 | 7,156 |
Non-accrual loans and leases | 0 | 0 |
Total gross loans and leases receivable | 8,388 | 7,262 |
Other | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 291 | 345 |
Current | 23,160 | 17,754 |
Non-accrual loans and leases | 451 | 354 |
Total gross loans and leases receivable | 23,451 | 18,099 |
Accruing loans and leases | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 2,801 | 2,164 |
Current | 1,566,695 | 1,474,485 |
Accrual loans and leases | 1,569,496 | 1,476,649 |
Accruing loans and leases | Commercial real estate — owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 115 | 0 |
Current | 193,148 | 193,366 |
Accrual loans and leases | 193,263 | 193,366 |
Accruing loans and leases | Commercial real estate — non-owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 742 | 0 |
Current | 487,068 | 470,202 |
Accrual loans and leases | 487,810 | 470,202 |
Accruing loans and leases | Land development | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
Current | 42,752 | 37,528 |
Accrual loans and leases | 42,752 | 37,528 |
Accruing loans and leases | Construction | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 196 |
Current | 130,392 | 122,089 |
Accrual loans and leases | 130,392 | 122,285 |
Accruing loans and leases | Multi-family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
Current | 174,664 | 136,978 |
Accrual loans and leases | 174,664 | 136,978 |
Accruing loans and leases | 1-4 family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 496 |
Current | 35,161 | 43,319 |
Accrual loans and leases | 35,161 | 43,815 |
Accruing loans and leases | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 1,944 | 1,366 |
Current | 441,032 | 415,315 |
Accrual loans and leases | 442,976 | 416,681 |
Accruing loans and leases | Direct financing leases, net | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
Current | 31,090 | 30,787 |
Accrual loans and leases | 31,090 | 30,787 |
Accruing loans and leases | Home equity and second mortgages | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 106 |
Current | 8,388 | 7,156 |
Accrual loans and leases | 8,388 | 7,262 |
Accruing loans and leases | Other | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
Current | 23,000 | 17,745 |
Accrual loans and leases | 23,000 | 17,745 |
Non-accruing loans and leases | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 15,695 | 17,537 |
Current | 14,918 | 8,852 |
Non-accrual loans and leases | 30,613 | 26,389 |
Non-accruing loans and leases | Commercial real estate — owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 2,666 | 5,241 |
Current | 7,804 | 1,780 |
Non-accrual loans and leases | 10,470 | 7,021 |
Non-accruing loans and leases | Commercial real estate — non-owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 32 | 0 |
Current | 0 | 34 |
Non-accrual loans and leases | 32 | 34 |
Non-accruing loans and leases | Land development | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 121 | |
Current | 2,136 | 2,626 |
Non-accrual loans and leases | 2,257 | 2,626 |
Non-accruing loans and leases | Construction | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 1,879 | 2,872 |
Current | 0 | 0 |
Non-accrual loans and leases | 1,879 | 2,872 |
Non-accruing loans and leases | Multi-family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
Current | 0 | 0 |
Non-accrual loans and leases | 0 | 0 |
Non-accruing loans and leases | 1-4 family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 529 | 948 |
Current | 39 | 213 |
Non-accrual loans and leases | 568 | 1,161 |
Non-accruing loans and leases | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 10,177 | 8,131 |
Current | 4,779 | 4,190 |
Non-accrual loans and leases | 14,956 | 12,321 |
Non-accruing loans and leases | Direct financing leases, net | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
Current | 0 | 0 |
Non-accrual loans and leases | 0 | 0 |
Non-accruing loans and leases | Home equity and second mortgages | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
Current | 0 | 0 |
Non-accrual loans and leases | 0 | 0 |
Non-accruing loans and leases | Other | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 291 | 345 |
Current | 160 | 9 |
Non-accrual loans and leases | 451 | 354 |
30-59 days past due | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 6,194 | 2,958 |
30-59 days past due | Commercial real estate — owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 1,144 | 405 |
30-59 days past due | Commercial real estate — non-owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 742 | 0 |
30-59 days past due | Land development | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
30-59 days past due | Construction | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
30-59 days past due | Multi-family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
30-59 days past due | 1-4 family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 496 |
30-59 days past due | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 4,308 | 1,951 |
30-59 days past due | Direct financing leases, net | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
30-59 days past due | Home equity and second mortgages | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 106 |
30-59 days past due | Other | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
30-59 days past due | Accruing loans and leases | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 2,686 | 1,771 |
30-59 days past due | Accruing loans and leases | Commercial real estate — owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
30-59 days past due | Accruing loans and leases | Commercial real estate — non-owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 742 | 0 |
30-59 days past due | Accruing loans and leases | Land development | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
30-59 days past due | Accruing loans and leases | Construction | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
30-59 days past due | Accruing loans and leases | Multi-family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
30-59 days past due | Accruing loans and leases | 1-4 family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 496 |
30-59 days past due | Accruing loans and leases | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 1,944 | 1,169 |
30-59 days past due | Accruing loans and leases | Direct financing leases, net | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
30-59 days past due | Accruing loans and leases | Home equity and second mortgages | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 106 |
30-59 days past due | Accruing loans and leases | Other | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
30-59 days past due | Non-accruing loans and leases | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 3,508 | 1,187 |
30-59 days past due | Non-accruing loans and leases | Commercial real estate — owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 1,144 | 405 |
30-59 days past due | Non-accruing loans and leases | Commercial real estate — non-owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
30-59 days past due | Non-accruing loans and leases | Land development | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
30-59 days past due | Non-accruing loans and leases | Construction | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
30-59 days past due | Non-accruing loans and leases | Multi-family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
30-59 days past due | Non-accruing loans and leases | 1-4 family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
30-59 days past due | Non-accruing loans and leases | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 2,364 | 782 |
30-59 days past due | Non-accruing loans and leases | Direct financing leases, net | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
30-59 days past due | Non-accruing loans and leases | Home equity and second mortgages | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
30-59 days past due | Non-accruing loans and leases | Other | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
60-89 days past due | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 158 | 393 |
60-89 days past due | Commercial real estate — owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 115 | 0 |
60-89 days past due | Commercial real estate — non-owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
60-89 days past due | Land development | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
60-89 days past due | Construction | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 196 |
60-89 days past due | Multi-family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
60-89 days past due | 1-4 family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
60-89 days past due | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 43 | 197 |
60-89 days past due | Direct financing leases, net | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
60-89 days past due | Home equity and second mortgages | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
60-89 days past due | Other | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
60-89 days past due | Accruing loans and leases | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 115 | 393 |
60-89 days past due | Accruing loans and leases | Commercial real estate — owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 115 | 0 |
60-89 days past due | Accruing loans and leases | Commercial real estate — non-owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
60-89 days past due | Accruing loans and leases | Land development | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
60-89 days past due | Accruing loans and leases | Construction | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 196 |
60-89 days past due | Accruing loans and leases | Multi-family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
60-89 days past due | Accruing loans and leases | 1-4 family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
60-89 days past due | Accruing loans and leases | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 197 |
60-89 days past due | Accruing loans and leases | Direct financing leases, net | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
60-89 days past due | Accruing loans and leases | Home equity and second mortgages | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
60-89 days past due | Accruing loans and leases | Other | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
60-89 days past due | Non-accruing loans and leases | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 43 | 0 |
60-89 days past due | Non-accruing loans and leases | Commercial real estate — owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
60-89 days past due | Non-accruing loans and leases | Commercial real estate — non-owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
60-89 days past due | Non-accruing loans and leases | Land development | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
60-89 days past due | Non-accruing loans and leases | Construction | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
60-89 days past due | Non-accruing loans and leases | Multi-family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
60-89 days past due | Non-accruing loans and leases | 1-4 family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
60-89 days past due | Non-accruing loans and leases | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 43 | 0 |
60-89 days past due | Non-accruing loans and leases | Direct financing leases, net | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
60-89 days past due | Non-accruing loans and leases | Home equity and second mortgages | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
60-89 days past due | Non-accruing loans and leases | Other | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
Greater than 90 days past due | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 12,144 | 16,350 |
Greater than 90 days past due | Commercial real estate — owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 1,522 | 4,836 |
Greater than 90 days past due | Commercial real estate — non-owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 32 | 0 |
Greater than 90 days past due | Land development | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 121 | 0 |
Greater than 90 days past due | Construction | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 1,879 | 2,872 |
Greater than 90 days past due | Multi-family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
Greater than 90 days past due | 1-4 family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 529 | 948 |
Greater than 90 days past due | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 7,770 | 7,349 |
Greater than 90 days past due | Direct financing leases, net | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
Greater than 90 days past due | Home equity and second mortgages | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
Greater than 90 days past due | Other | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 291 | 345 |
Greater than 90 days past due | Accruing loans and leases | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
Greater than 90 days past due | Accruing loans and leases | Commercial real estate — owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
Greater than 90 days past due | Accruing loans and leases | Commercial real estate — non-owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
Greater than 90 days past due | Accruing loans and leases | Land development | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
Greater than 90 days past due | Accruing loans and leases | Construction | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
Greater than 90 days past due | Accruing loans and leases | Multi-family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
Greater than 90 days past due | Accruing loans and leases | 1-4 family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
Greater than 90 days past due | Accruing loans and leases | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
Greater than 90 days past due | Accruing loans and leases | Direct financing leases, net | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
Greater than 90 days past due | Accruing loans and leases | Home equity and second mortgages | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
Greater than 90 days past due | Accruing loans and leases | Other | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
Greater than 90 days past due | Non-accruing loans and leases | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 12,144 | 16,350 |
Greater than 90 days past due | Non-accruing loans and leases | Commercial real estate — owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 1,522 | 4,836 |
Greater than 90 days past due | Non-accruing loans and leases | Commercial real estate — non-owner occupied | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 32 | 0 |
Greater than 90 days past due | Non-accruing loans and leases | Land development | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 121 | 0 |
Greater than 90 days past due | Non-accruing loans and leases | Construction | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 1,879 | 2,872 |
Greater than 90 days past due | Non-accruing loans and leases | Multi-family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
Greater than 90 days past due | Non-accruing loans and leases | 1-4 family | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 529 | 948 |
Greater than 90 days past due | Non-accruing loans and leases | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 7,770 | 7,349 |
Greater than 90 days past due | Non-accruing loans and leases | Direct financing leases, net | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
Greater than 90 days past due | Non-accruing loans and leases | Home equity and second mortgages | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 0 | 0 |
Greater than 90 days past due | Non-accruing loans and leases | Other | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | $ 291 | $ 345 |
Loan and Lease Receivables, I_8
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Non-accrual Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Impaired | ||
Non-accrual loans and leases | $ 30,613 | $ 26,389 |
Foreclosed properties, net | 1,454 | 1,069 |
Total non-performing assets | 32,067 | 27,458 |
Performing troubled debt restructurings | 187 | 332 |
Total impaired assets | $ 32,254 | $ 27,790 |
Total non-accrual loans and leases to gross loans and leases | 1.91% | 1.76% |
Total non-performing assets to total gross loans and leases plus foreclosed properties, net | 2.00% | 1.83% |
Total non-performing assets to total assets | 1.69% | 1.53% |
Allowance for loan and lease losses to gross loans and leases | 1.28% | 1.25% |
Allowance for loan and lease losses to non-accrual loans and leases | 66.82% | 71.10% |
Commercial real estate — owner occupied | ||
Financing Receivable, Impaired | ||
Non-accrual loans and leases | $ 10,470 | $ 7,021 |
Commercial real estate — non-owner occupied | ||
Financing Receivable, Impaired | ||
Non-accrual loans and leases | 32 | 34 |
Land development | ||
Financing Receivable, Impaired | ||
Non-accrual loans and leases | 2,257 | 2,626 |
Construction | ||
Financing Receivable, Impaired | ||
Non-accrual loans and leases | 1,879 | 2,872 |
Multi-family | ||
Financing Receivable, Impaired | ||
Non-accrual loans and leases | 0 | 0 |
1-4 family | ||
Financing Receivable, Impaired | ||
Non-accrual loans and leases | 568 | 1,161 |
Total non-accrual commercial real estate | ||
Financing Receivable, Impaired | ||
Non-accrual loans and leases | 15,206 | 13,714 |
Commercial and industrial | ||
Financing Receivable, Impaired | ||
Non-accrual loans and leases | 14,956 | 12,321 |
Direct financing leases, net | ||
Financing Receivable, Impaired | ||
Non-accrual loans and leases | 0 | 0 |
Home equity and second mortgages | ||
Financing Receivable, Impaired | ||
Non-accrual loans and leases | 0 | 0 |
Other | ||
Financing Receivable, Impaired | ||
Non-accrual loans and leases | 451 | 354 |
Total non-accrual consumer and other loans | ||
Financing Receivable, Impaired | ||
Non-accrual loans and leases | $ 451 | $ 354 |
Loan and Lease Receivables, I_9
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Troubled Debt Restructurings) (Details) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018loans | Sep. 30, 2017loans | Dec. 31, 2017USD ($) | |
Troubled debt restructurings | |||
Number of loans | loans | 0 | 5 | |
Pre-Modification Recorded Investment | $ 4,391 | ||
Post-Modification Recorded Investment | 4,417 | ||
Commercial and industrial | |||
Troubled debt restructurings | |||
Number of loans | loans | 4 | ||
Pre-Modification Recorded Investment | 4,374 | ||
Post-Modification Recorded Investment | 4,400 | ||
Other | |||
Troubled debt restructurings | |||
Number of loans | loans | 1 | ||
Pre-Modification Recorded Investment | 17 | ||
Post-Modification Recorded Investment | $ 17 |
Loan and Lease Receivables, _10
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Impaired Loans and Leases) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Recorded Investment(1) | ||
With no impairment reserve recorded | $ 16,971 | $ 16,975 |
With impairment reserve recorded | 13,829 | 9,746 |
Total | 30,800 | 26,721 |
Unpaid Principal Balance | ||
With no impairment reserve recorded | 26,028 | 21,671 |
With impairment reserve recorded | 15,164 | 11,694 |
Total | 41,192 | 33,365 |
Impairment Reserve | ||
Impairment Reserve | 4,569 | 4,491 |
Average Recorded Investment(2) | ||
With no impairment reserve recorded | 16,152 | 18,624 |
With impairment reserve recorded | 10,319 | 14,540 |
Total | 26,471 | 33,164 |
Foregone Interest Income | ||
With no impairment reserve recorded | 1,600 | 1,898 |
With impairment reserve recorded | 944 | 797 |
Foregone interest income | 2,544 | 2,695 |
Interest Income Recognized | ||
With no impairment reserve recorded | 760 | 454 |
With impairment reserve recorded | 0 | 0 |
Total | 760 | 454 |
Net Foregone Interest Income | ||
With no impairment reserve recorded | 840 | 1,444 |
With impairment reserve recorded | 944 | 797 |
Total | 1,784 | 2,241 |
Commercial real estate — owner occupied | ||
Recorded Investment(1) | ||
With no impairment reserve recorded | 9,326 | 7,077 |
With impairment reserve recorded | 1,144 | 0 |
Total | 10,470 | 7,077 |
Unpaid Principal Balance | ||
With no impairment reserve recorded | 12,451 | 7,077 |
With impairment reserve recorded | 1,144 | 0 |
Total | 13,595 | 7,077 |
Impairment Reserve | ||
Impairment Reserve | 193 | 0 |
Average Recorded Investment(2) | ||
With no impairment reserve recorded | 7,305 | 5,549 |
With impairment reserve recorded | 255 | 0 |
Total | 7,560 | 5,549 |
Foregone Interest Income | ||
With no impairment reserve recorded | 614 | 613 |
With impairment reserve recorded | 64 | 0 |
Foregone interest income | 678 | 613 |
Interest Income Recognized | ||
With no impairment reserve recorded | 197 | 0 |
With impairment reserve recorded | 0 | 0 |
Total | 197 | 0 |
Net Foregone Interest Income | ||
With no impairment reserve recorded | 417 | 613 |
With impairment reserve recorded | 64 | 0 |
Total | 481 | 613 |
Commercial real estate — non-owner occupied | ||
Recorded Investment(1) | ||
With no impairment reserve recorded | 32 | 34 |
With impairment reserve recorded | 0 | 0 |
Total | 32 | 34 |
Unpaid Principal Balance | ||
With no impairment reserve recorded | 72 | 75 |
With impairment reserve recorded | 0 | 0 |
Total | 72 | 75 |
Impairment Reserve | ||
Impairment Reserve | 0 | 0 |
Average Recorded Investment(2) | ||
With no impairment reserve recorded | 34 | 1,830 |
With impairment reserve recorded | 0 | 0 |
Total | 34 | 1,830 |
Foregone Interest Income | ||
With no impairment reserve recorded | 1 | 97 |
With impairment reserve recorded | 0 | 0 |
Foregone interest income | 1 | 97 |
Interest Income Recognized | ||
With no impairment reserve recorded | 0 | 226 |
With impairment reserve recorded | 0 | 0 |
Total | 0 | 226 |
Net Foregone Interest Income | ||
With no impairment reserve recorded | 1 | (129) |
With impairment reserve recorded | 0 | 0 |
Total | 1 | (129) |
Land development | ||
Recorded Investment(1) | ||
With no impairment reserve recorded | 2,136 | 2,627 |
With impairment reserve recorded | 121 | 0 |
Total | 2,257 | 2,627 |
Unpaid Principal Balance | ||
With no impairment reserve recorded | 6,432 | 5,297 |
With impairment reserve recorded | 121 | 0 |
Total | 6,553 | 5,297 |
Impairment Reserve | ||
Impairment Reserve | 35 | 0 |
Average Recorded Investment(2) | ||
With no impairment reserve recorded | 2,373 | 3,092 |
With impairment reserve recorded | 39 | 0 |
Total | 2,412 | 3,092 |
Foregone Interest Income | ||
With no impairment reserve recorded | 33 | 84 |
With impairment reserve recorded | 2 | 0 |
Foregone interest income | 35 | 84 |
Interest Income Recognized | ||
With no impairment reserve recorded | 0 | 0 |
With impairment reserve recorded | 0 | 0 |
Total | 0 | 0 |
Net Foregone Interest Income | ||
With no impairment reserve recorded | 33 | 84 |
With impairment reserve recorded | 2 | 0 |
Total | 35 | 84 |
Construction | ||
Recorded Investment(1) | ||
With no impairment reserve recorded | 0 | 0 |
With impairment reserve recorded | 1,879 | 2,872 |
Total | 1,879 | 2,872 |
Unpaid Principal Balance | ||
With no impairment reserve recorded | 0 | 0 |
With impairment reserve recorded | 2,872 | 2,872 |
Total | 2,872 | 2,872 |
Impairment Reserve | ||
Impairment Reserve | 379 | 415 |
Average Recorded Investment(2) | ||
With no impairment reserve recorded | 2,039 | 2,000 |
With impairment reserve recorded | 207 | 2,252 |
Total | 2,246 | 4,252 |
Foregone Interest Income | ||
With no impairment reserve recorded | 0 | 134 |
With impairment reserve recorded | 162 | 158 |
Foregone interest income | 162 | 292 |
Interest Income Recognized | ||
With no impairment reserve recorded | 0 | 214 |
With impairment reserve recorded | 0 | 0 |
Total | 0 | 214 |
Net Foregone Interest Income | ||
With no impairment reserve recorded | 0 | (80) |
With impairment reserve recorded | 162 | 158 |
Total | 162 | 78 |
Multi-family | ||
Recorded Investment(1) | ||
With no impairment reserve recorded | 0 | 0 |
With impairment reserve recorded | 0 | 0 |
Total | 0 | 0 |
Unpaid Principal Balance | ||
With no impairment reserve recorded | 0 | 0 |
With impairment reserve recorded | 0 | 0 |
Total | 0 | 0 |
Impairment Reserve | ||
Impairment Reserve | 0 | 0 |
Average Recorded Investment(2) | ||
With no impairment reserve recorded | 0 | 1 |
With impairment reserve recorded | 0 | 0 |
Total | 0 | 1 |
Foregone Interest Income | ||
With no impairment reserve recorded | 0 | 0 |
With impairment reserve recorded | 0 | 0 |
Foregone interest income | 0 | 0 |
Interest Income Recognized | ||
With no impairment reserve recorded | 0 | 0 |
With impairment reserve recorded | 0 | 0 |
Total | 0 | 0 |
Net Foregone Interest Income | ||
With no impairment reserve recorded | 0 | 0 |
With impairment reserve recorded | 0 | 0 |
Total | 0 | 0 |
1-4 family | ||
Recorded Investment(1) | ||
With no impairment reserve recorded | 752 | 1,423 |
With impairment reserve recorded | 0 | 0 |
Total | 752 | 1,423 |
Unpaid Principal Balance | ||
With no impairment reserve recorded | 1,022 | 1,706 |
With impairment reserve recorded | 0 | 0 |
Total | 1,022 | 1,706 |
Impairment Reserve | ||
Impairment Reserve | 0 | 0 |
Average Recorded Investment(2) | ||
With no impairment reserve recorded | 961 | 2,146 |
With impairment reserve recorded | 0 | 0 |
Total | 961 | 2,146 |
Foregone Interest Income | ||
With no impairment reserve recorded | 40 | 53 |
With impairment reserve recorded | 0 | 0 |
Foregone interest income | 40 | 53 |
Interest Income Recognized | ||
With no impairment reserve recorded | 76 | 7 |
With impairment reserve recorded | 0 | 0 |
Total | 76 | 7 |
Net Foregone Interest Income | ||
With no impairment reserve recorded | (36) | 46 |
With impairment reserve recorded | 0 | 0 |
Total | (36) | 46 |
Commercial and industrial | ||
Recorded Investment(1) | ||
With no impairment reserve recorded | 4,434 | 5,465 |
With impairment reserve recorded | 10,525 | 6,865 |
Total | 14,959 | 12,330 |
Unpaid Principal Balance | ||
With no impairment reserve recorded | 5,094 | 6,502 |
With impairment reserve recorded | 10,867 | 8,813 |
Total | 15,961 | 15,315 |
Impairment Reserve | ||
Impairment Reserve | 3,802 | 4,067 |
Average Recorded Investment(2) | ||
With no impairment reserve recorded | 3,133 | 3,634 |
With impairment reserve recorded | 9,810 | 12,288 |
Total | 12,943 | 15,922 |
Foregone Interest Income | ||
With no impairment reserve recorded | 870 | 858 |
With impairment reserve recorded | 716 | 639 |
Foregone interest income | 1,586 | 1,497 |
Interest Income Recognized | ||
With no impairment reserve recorded | 442 | 7 |
With impairment reserve recorded | 0 | 0 |
Total | 442 | 7 |
Net Foregone Interest Income | ||
With no impairment reserve recorded | 428 | 851 |
With impairment reserve recorded | 716 | 639 |
Total | 1,144 | 1,490 |
Direct financing leases, net | ||
Recorded Investment(1) | ||
With no impairment reserve recorded | 0 | 0 |
With impairment reserve recorded | 0 | 0 |
Total | 0 | 0 |
Unpaid Principal Balance | ||
With no impairment reserve recorded | 0 | 0 |
With impairment reserve recorded | 0 | 0 |
Total | 0 | 0 |
Impairment Reserve | ||
Impairment Reserve | 0 | 0 |
Average Recorded Investment(2) | ||
With no impairment reserve recorded | 0 | 0 |
With impairment reserve recorded | 0 | 0 |
Total | 0 | 0 |
Foregone Interest Income | ||
With no impairment reserve recorded | 0 | 0 |
With impairment reserve recorded | 0 | 0 |
Foregone interest income | 0 | 0 |
Interest Income Recognized | ||
With no impairment reserve recorded | 0 | 0 |
With impairment reserve recorded | 0 | 0 |
Total | 0 | 0 |
Net Foregone Interest Income | ||
With no impairment reserve recorded | 0 | 0 |
With impairment reserve recorded | 0 | 0 |
Total | 0 | 0 |
Home equity and second mortgages | ||
Recorded Investment(1) | ||
With no impairment reserve recorded | 0 | 4 |
With impairment reserve recorded | 0 | 0 |
Total | 0 | 4 |
Unpaid Principal Balance | ||
With no impairment reserve recorded | 0 | 3 |
With impairment reserve recorded | 0 | 0 |
Total | 0 | 3 |
Impairment Reserve | ||
Impairment Reserve | 0 | 0 |
Average Recorded Investment(2) | ||
With no impairment reserve recorded | 1 | 7 |
With impairment reserve recorded | 0 | 0 |
Total | 1 | 7 |
Foregone Interest Income | ||
With no impairment reserve recorded | 0 | 0 |
With impairment reserve recorded | 0 | 0 |
Foregone interest income | 0 | 0 |
Interest Income Recognized | ||
With no impairment reserve recorded | 45 | 0 |
With impairment reserve recorded | 0 | 0 |
Total | 45 | 0 |
Net Foregone Interest Income | ||
With no impairment reserve recorded | (45) | 0 |
With impairment reserve recorded | 0 | 0 |
Total | (45) | 0 |
Other | ||
Recorded Investment(1) | ||
With no impairment reserve recorded | 291 | 345 |
With impairment reserve recorded | 160 | 9 |
Total | 451 | 354 |
Unpaid Principal Balance | ||
With no impairment reserve recorded | 957 | 1,011 |
With impairment reserve recorded | 160 | 9 |
Total | 1,117 | 1,020 |
Impairment Reserve | ||
Impairment Reserve | 160 | 9 |
Average Recorded Investment(2) | ||
With no impairment reserve recorded | 306 | 365 |
With impairment reserve recorded | 8 | 0 |
Total | 314 | 365 |
Foregone Interest Income | ||
With no impairment reserve recorded | 42 | 59 |
With impairment reserve recorded | 0 | 0 |
Foregone interest income | 42 | 59 |
Interest Income Recognized | ||
With no impairment reserve recorded | 0 | 0 |
With impairment reserve recorded | 0 | 0 |
Total | 0 | 0 |
Net Foregone Interest Income | ||
With no impairment reserve recorded | 42 | 59 |
With impairment reserve recorded | 0 | 0 |
Total | $ 42 | $ 59 |
Loan and Lease Receivables, _11
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Allowance for Loan and Lease Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Allowance for credit losses roll-forward | |||||
Allowance for loan and lease losses - begin | $ 20,932 | $ 21,677 | $ 18,763 | $ 20,912 | |
Charge-offs | (1,914) | (3,230) | (4,904) | (7,196) | |
Recoveries | 1,983 | 5 | 2,088 | 508 | |
Net (charge-offs) recoveries | 69 | (3,225) | (2,816) | (6,688) | |
Provision for credit loss | (546) | 1,471 | 4,508 | 5,699 | |
Allowance for loan and lease losses - end | 20,455 | 19,923 | 20,455 | 19,923 | |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 15,886 | 15,886 | $ 14,272 | ||
Commercial real estate: | |||||
Allowance for credit losses roll-forward | |||||
Allowance for loan and lease losses - begin | 11,147 | 12,003 | 10,131 | 12,384 | |
Charge-offs | (1,826) | (8) | (4,122) | (126) | |
Recoveries | 7 | 2 | 22 | 152 | |
Net (charge-offs) recoveries | (1,819) | (6) | (4,100) | 26 | |
Provision for credit loss | 2,365 | (2,462) | 5,662 | (2,875) | |
Allowance for loan and lease losses - end | 11,693 | 9,535 | 11,693 | 9,535 | |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 11,086 | 11,086 | 9,716 | ||
Commercial and industrial loans and leases | |||||
Allowance for credit losses roll-forward | |||||
Allowance for loan and lease losses - begin | 9,237 | 9,090 | 8,225 | 7,970 | |
Charge-offs | (75) | (3,217) | (732) | (6,978) | |
Recoveries | 1,974 | 2 | 1,993 | 314 | |
Net (charge-offs) recoveries | 1,899 | (3,215) | 1,261 | (6,664) | |
Provision for credit loss | (3,252) | 3,968 | (1,602) | 8,537 | |
Allowance for loan and lease losses - end | 7,884 | 9,843 | 7,884 | 9,843 | |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 4,082 | 4,082 | 4,158 | ||
Consumer and other: | |||||
Allowance for credit losses roll-forward | |||||
Allowance for loan and lease losses - begin | 548 | 584 | 407 | 558 | |
Charge-offs | (13) | (5) | (50) | (92) | |
Recoveries | 2 | 1 | 73 | 42 | |
Net (charge-offs) recoveries | (11) | (4) | 23 | (50) | |
Provision for credit loss | 341 | (35) | 448 | 37 | |
Allowance for loan and lease losses - end | 878 | $ 545 | 878 | $ 545 | |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | $ 718 | $ 718 | $ 398 |
Loan and Lease Receivables, _12
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses Allowance for Loan and Lease Losses 2 (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | $ 15,886 | $ 14,272 | ||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 4,569 | 4,491 | ||||
Allowance for loan and lease losses | 20,455 | $ 20,932 | 18,763 | $ 19,923 | $ 21,677 | $ 20,912 |
Financing Receivable, Collectively Evaluated for Impairment | 1,569,309 | 1,476,317 | ||||
Financing Receivable, Individually Evaluated for Impairment | 30,551 | 26,188 | ||||
Loans and Leases Receivable, Gross | 1,600,109 | 1,503,038 | ||||
Loans acquired with deteriorated credit quality | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 | ||||
Financing Receivable, Individually Evaluated for Impairment | 249 | 533 | ||||
Commercial real estate: | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 11,086 | 9,716 | ||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 607 | 415 | ||||
Allowance for loan and lease losses | 11,693 | 11,147 | 10,131 | 9,535 | 12,003 | 12,384 |
Financing Receivable, Collectively Evaluated for Impairment | 1,063,858 | 1,003,855 | ||||
Financing Receivable, Individually Evaluated for Impairment | 15,144 | 13,506 | ||||
Loans and Leases Receivable, Gross | 1,079,248 | 1,017,888 | ||||
Commercial real estate: | Loans acquired with deteriorated credit quality | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 | ||||
Financing Receivable, Individually Evaluated for Impairment | 246 | 527 | ||||
Commercial and industrial loans and leases | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 4,082 | 4,158 | ||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 3,802 | 4,067 | ||||
Allowance for loan and lease losses | 7,884 | 9,237 | 8,225 | 9,843 | 9,090 | 7,970 |
Financing Receivable, Collectively Evaluated for Impairment | 474,063 | 447,459 | ||||
Financing Receivable, Individually Evaluated for Impairment | 14,956 | 12,324 | ||||
Loans and Leases Receivable, Gross | 489,022 | 459,789 | ||||
Commercial and industrial loans and leases | Loans acquired with deteriorated credit quality | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 | ||||
Financing Receivable, Individually Evaluated for Impairment | 3 | 6 | ||||
Consumer and other: | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 718 | 398 | ||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 160 | 9 | ||||
Allowance for loan and lease losses | 878 | $ 548 | 407 | $ 545 | $ 584 | $ 558 |
Financing Receivable, Collectively Evaluated for Impairment | 31,388 | 25,003 | ||||
Financing Receivable, Individually Evaluated for Impairment | 451 | 358 | ||||
Loans and Leases Receivable, Gross | 31,839 | 25,361 | ||||
Consumer and other: | Loans acquired with deteriorated credit quality | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 | ||||
Financing Receivable, Individually Evaluated for Impairment | $ 0 | $ 0 |
Loan and Lease Receivables, _13
Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Narrative Disclosures) (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)loans | Sep. 30, 2017USD ($)loans | Dec. 31, 2017USD ($) | |
Financing Receivable, Recorded Investment | |||||
SBA loans in the participation sold portfolio, considered impaired | $ 12,000,000 | $ 12,000,000 | $ 11,100,000 | ||
Guaranteed portion of SBA loans sold to third parties | 4,500,000 | $ 6,300,000 | 10,800,000 | $ 15,500,000 | |
Total amount of outstanding SBA loans sold | 91,100,000 | 91,100,000 | 100,300,000 | ||
Loans and leases transferred to third parties total principal amount | 17,200,000 | $ 15,900,000 | 51,600,000 | 36,600,000 | |
Gain (Loss) Recognized on Participation Interest in Originated Loans | 0 | $ 0 | |||
Total amount of outstanding loans transferred to third parties as loan participations | 125,700,000 | 125,700,000 | 106,400,000 | ||
Total amount of loan participations remaining on the Corporations balance sheet | 206,000,000 | 206,000,000 | 181,700,000 | ||
Loans in the participation sold portfolio, considered impaired | 0 | 0 | 0 | ||
Loan participations purchased on the Corporation's balance sheet | 590,000 | 590,000 | 650,000 | ||
Total gross loans and leases receivable | 1,600,109,000 | 1,600,109,000 | 1,503,038,000 | ||
Non-accrual troubled debt restructurings | 8,100,000 | 8,100,000 | 8,800,000 | ||
Unfunded commitments, troubled debt restructurings | 0 | $ 0 | |||
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | loans | 0 | 0 | |||
Loans and leases receivable, difference between recorded investment and unpaid principal balance | 10,400,000 | $ 10,400,000 | 6,600,000 | ||
Performing troubled debt restructurings | 187,000 | 187,000 | 332,000 | ||
Substandard | |||||
Financing Receivable, Recorded Investment | |||||
Total gross loans and leases receivable | 38,800,000 | 38,800,000 | 32,700,000 | ||
Doubtful | |||||
Financing Receivable, Recorded Investment | |||||
Total gross loans and leases receivable | 0 | 0 | 4,700,000 | ||
Consumer and other: | |||||
Financing Receivable, Recorded Investment | |||||
Total gross loans and leases receivable | 31,839,000 | 31,839,000 | 25,361,000 | ||
Commercial and industrial | |||||
Financing Receivable, Recorded Investment | |||||
Total gross loans and leases receivable | $ 457,932,000 | $ 457,932,000 | $ 429,002,000 |
Other Assets Accrued Interest R
Other Assets Accrued Interest Receivable and Other Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Accrued interest receivable | $ 5,678 | $ 5,019 |
Net deferred tax asset | 2,173 | 2,584 |
Investment in historic development entities | 1,849 | 1,161 |
Investment in a community development entity | 6,209 | 6,591 |
Investment in limited partnerships | 3,888 | 4,261 |
Investment in Trust II | 315 | 315 |
Fair value of interest rate swaps | 2,470 | 942 |
Prepaid expenses | 3,266 | 3,091 |
Other assets | 5,445 | 5,884 |
Total accrued interest receivable and other assets | $ 31,293 | $ 29,848 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Deposits [Line Items] | ||
Deposits | $ 1,408,903 | $ 1,394,331 |
Average balance, deposits | $ 1,384,537 | $ 1,459,067 |
Deposits, weighted average interest rate during the period | 0.99% | 0.74% |
Non-interest-bearing transaction accounts | ||
Deposits [Line Items] | ||
Deposits | $ 233,915 | $ 277,445 |
Average balance, deposits | $ 236,208 | $ 230,907 |
Deposits, weighted average interest rate during the period | 0.00% | 0.00% |
Interest-bearing transaction accounts | ||
Deposits [Line Items] | ||
Deposits | $ 256,303 | $ 217,625 |
Average balance, deposits | $ 278,042 | $ 226,540 |
Deposits, weighted average interest rate during the period | 0.87% | 0.59% |
Money market accounts | ||
Deposits [Line Items] | ||
Deposits | $ 475,322 | $ 515,077 |
Average balance, deposits | $ 487,395 | $ 583,241 |
Deposits, weighted average interest rate during the period | 0.91% | 0.47% |
Certificates of deposit | ||
Deposits [Line Items] | ||
Deposits | $ 111,311 | $ 76,199 |
Average balance, deposits | $ 80,630 | $ 56,667 |
Deposits, weighted average interest rate during the period | 1.42% | 1.00% |
Wholesale deposits | ||
Deposits [Line Items] | ||
Deposits | $ 332,052 | $ 307,985 |
Average balance, deposits | $ 302,262 | $ 361,712 |
Deposits, weighted average interest rate during the period | 1.88% | 1.70% |
FHLB Advances, Other Borrowin_3
FHLB Advances, Other Borrowings and Junior Subordinated Notes Payable (Composition of Borrowed Funds) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Composition of Borrowed Funds [Line Items] | ||
Borrowed funds | $ 291,459 | $ 217,917 |
Borrowed funds, average balance | $ 312,460 | $ 140,083 |
Borrowed funds, interest rate during period | 2.67% | 3.14% |
Long-term borrowings | ||
Composition of Borrowed Funds [Line Items] | ||
Borrowed funds | $ 185,959 | $ 180,907 |
Short-term borrowings | ||
Composition of Borrowed Funds [Line Items] | ||
Borrowed funds | 105,500 | 37,010 |
Federal funds purchased | ||
Composition of Borrowed Funds [Line Items] | ||
Borrowed funds | 0 | 0 |
Borrowed funds, average balance | $ 159 | $ 66 |
Borrowed funds, interest rate during period | 2.43% | 1.22% |
FHLB advances | ||
Composition of Borrowed Funds [Line Items] | ||
Borrowed funds | $ 257,000 | $ 183,500 |
Borrowed funds, average balance | $ 277,866 | $ 105,276 |
Borrowed funds, interest rate during period | 2.01% | 1.40% |
Line of credit | ||
Composition of Borrowed Funds [Line Items] | ||
Borrowed funds | $ 0 | $ 10 |
Borrowed funds, average balance | $ 5 | $ 328 |
Borrowed funds, interest rate during period | 4.46% | 3.64% |
Other borrowings | ||
Composition of Borrowed Funds [Line Items] | ||
Borrowed funds | $ 675 | $ 675 |
Borrowed funds, average balance | $ 675 | $ 1,241 |
Borrowed funds, interest rate during period | 8.12% | 14.50% |
Subordinated notes payable | ||
Composition of Borrowed Funds [Line Items] | ||
Borrowed funds | $ 23,755 | $ 23,713 |
Borrowed funds, average balance | $ 23,732 | $ 23,161 |
Borrowed funds, interest rate during period | 6.65% | 6.93% |
Junior subordinated notes | ||
Composition of Borrowed Funds [Line Items] | ||
Borrowed funds | $ 10,029 | $ 10,019 |
Borrowed funds, average balance | $ 10,023 | $ 10,011 |
Borrowed funds, interest rate during period | 11.07% | 11.11% |
FHLB Advances, Other Borrowin_4
FHLB Advances, Other Borrowings and Junior Subordinated Notes Payable (Narrative Disclosures) (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Debt Disclosure [Abstract] | ||
Line of credit commitment fee | $ 10,000 | $ 10,000 |
Commitments and Contingencies S
Commitments and Contingencies SBA Recourse Reserve Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Beginning balance | $ 2,849 | $ 1,750 | ||
SBA Recourse Provision | $ 314 | $ 1,315 | 118 | 2,095 |
SBA Loan Charge Offs, Net | (238) | (1,141) | ||
Ending balance | $ 2,729 | $ 2,704 | $ 2,729 | $ 2,704 |
Commitments and Contingencies N
Commitments and Contingencies Narrative (Details) $ in Millions | Sep. 30, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
SBA Loans, Probability of Future Losses | $ 2.7 |
Fair Value Disclosures (Measure
Fair Value Disclosures (Measured on a Recurring Basis) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ||
Derivative Liability | $ 1,180 | $ 1,064 |
Interest rate swaps | Fair Value Measurements - Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ||
Derivative Liability | 0 | 0 |
Interest rate swaps | Fair Value Measurements - Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ||
Derivative Liability | 1,180 | 1,064 |
Interest rate swaps | Fair Value Measurements - Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ||
Derivative Liability | 0 | 0 |
Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ||
Assets, Fair Value Disclosure | 2,470 | 942 |
Interest rate swaps | Fair Value Measurements - Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
Interest rate swaps | Fair Value Measurements - Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ||
Assets, Fair Value Disclosure | 2,470 | 942 |
Interest rate swaps | Fair Value Measurements - Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
U.S. government agency obligations - government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ||
Assets, Fair Value Disclosure | 984 | 1,000 |
U.S. government agency obligations - government-sponsored enterprises | Fair Value Measurements - Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
U.S. government agency obligations - government-sponsored enterprises | Fair Value Measurements - Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ||
Assets, Fair Value Disclosure | 984 | 1,000 |
U.S. government agency obligations - government-sponsored enterprises | Fair Value Measurements - Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
Municipal obligations | ||
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ||
Assets, Fair Value Disclosure | 5,729 | 9,414 |
Municipal obligations | Fair Value Measurements - Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
Municipal obligations | Fair Value Measurements - Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ||
Assets, Fair Value Disclosure | 5,729 | 9,414 |
Municipal obligations | Fair Value Measurements - Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
Collateralized mortgage obligations - government issued | ||
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ||
Assets, Fair Value Disclosure | 20,280 | 22,249 |
Collateralized mortgage obligations - government issued | Fair Value Measurements - Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
Collateralized mortgage obligations - government issued | Fair Value Measurements - Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ||
Assets, Fair Value Disclosure | 20,280 | 22,249 |
Collateralized mortgage obligations - government issued | Fair Value Measurements - Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
Collateralized mortgage obligations - government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ||
Assets, Fair Value Disclosure | 105,619 | 90,305 |
Collateralized mortgage obligations - government-sponsored enterprises | Fair Value Measurements - Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
Collateralized mortgage obligations - government-sponsored enterprises | Fair Value Measurements - Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ||
Assets, Fair Value Disclosure | 105,619 | 90,305 |
Collateralized mortgage obligations - government-sponsored enterprises | Fair Value Measurements - Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
Other securities | ||
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ||
Assets, Fair Value Disclosure | 2,383 | 3,037 |
Other securities | Fair Value Measurements - Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
Other securities | Fair Value Measurements - Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ||
Assets, Fair Value Disclosure | 2,383 | 3,037 |
Other securities | Fair Value Measurements - Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on a Recurring Basis | ||
Assets, Fair Value Disclosure | $ 0 | $ 0 |
Fair Value Disclosures (Measu_2
Fair Value Disclosures (Measured on a Non-Recurring Basis) (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 24,940 | $ 15,147 |
Impaired loans | Fair Value Measurements - Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Impaired loans | Fair Value Measurements - Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 20,260 | 10,063 |
Impaired loans | Fair Value Measurements - Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 4,680 | 5,084 |
Foreclosed properties | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 1,454 | 1,069 |
Foreclosed properties | Fair Value Measurements - Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Foreclosed properties | Fair Value Measurements - Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 1,454 | 1,069 |
Foreclosed properties | Fair Value Measurements - Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 0 | $ 0 |
Loan servicing rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 1,354 | |
Loan servicing rights | Fair Value Measurements - Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 0 | |
Loan servicing rights | Fair Value Measurements - Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 0 | |
Loan servicing rights | Fair Value Measurements - Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 1,354 |
Fair Value Disclosures (Fair Va
Fair Value Disclosures (Fair Value by Balance Sheet Groupings) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Financial assets: | ||||
Cash and cash equivalents, carrying amount | $ 40,293 | $ 52,539 | $ 73,196 | $ 77,517 |
Securities available-for-sale, carrying amount | 134,995 | 126,005 | ||
Securities held-to-maturity, carrying amount | 39,950 | 37,778 | ||
Loans held for sale, carrying amount | 4,712 | 2,194 | ||
Loans and leases receivable, net amount, carrying amount | 1,578,152 | 1,482,832 | ||
Federal Home Loan Bank and Federal Reserve Bank stock, carrying amount | 6,890 | 5,670 | ||
Accrued interest receivable, carrying amount | 5,678 | 5,019 | ||
Interest rate swaps - assets, carrying amount | 2,470 | 942 | ||
Cash and cash equivalents, fair value | 40,293 | 52,539 | ||
Securities available-for-sale, fair value | 134,995 | 126,005 | ||
Held-to-maturity Securities, fair value | 39,130 | 37,696 | ||
Loans Held-for-sale, Fair Value Disclosure | 5,183 | 2,413 | ||
Loans and lease receivables, net, fair value | 1,569,571 | 1,482,664 | ||
Accrued interest receivable, fair value | 5,678 | 5,019 | ||
Interest rate swaps - assets, fair value | 2,470 | 942 | ||
Financial liabilities: | ||||
Deposits, carrying amount | 1,408,903 | 1,394,331 | ||
Federal Home Loan Bank and other borrowings, carrying amount | 281,430 | 207,898 | ||
Junior subordinated notes, carrying amount | 10,029 | 10,019 | ||
Accrued interest payable, carrying amount | 3,407 | 2,095 | ||
Standby letters of credit, carrying amount | 53 | 75 | ||
Deposits, fair value | 1,405,963 | 1,391,801 | ||
Federal Home Loan Bank and other borrowings fair value | 276,601 | 206,441 | ||
Junior subordinated notes, fair value | 9,951 | 8,836 | ||
Accrued interest payable, fair value | 3,407 | 2,095 | ||
Interest Rate Derivative Instruments, Both Hedging and Not Designated as Hedging, Liability at Fair Value, Fair Value Disclosure | 1,180 | 1,064 | ||
Standby letters of credit, fair value | 53 | 75 | ||
Fair Value Measurements - Level 1 Inputs | ||||
Financial assets: | ||||
Cash and cash equivalents, fair value | 26,993 | 35,114 | ||
Securities available-for-sale, fair value | 0 | 0 | ||
Held-to-maturity Securities, fair value | 0 | 0 | ||
Loans Held-for-sale, Fair Value Disclosure | 0 | 0 | ||
Loans and lease receivables, net, fair value | 0 | 0 | ||
Accrued interest receivable, fair value | 5,678 | 5,019 | ||
Interest rate swaps - assets, fair value | 0 | 0 | ||
Financial liabilities: | ||||
Deposits, fair value | 965,540 | 1,010,147 | ||
Federal Home Loan Bank and other borrowings fair value | 0 | 0 | ||
Junior subordinated notes, fair value | 0 | 0 | ||
Accrued interest payable, fair value | 3,407 | 2,095 | ||
Interest Rate Derivative Instruments, Both Hedging and Not Designated as Hedging, Liability at Fair Value, Fair Value Disclosure | 0 | 0 | ||
Standby letters of credit, fair value | 0 | 0 | ||
Fair Value Measurements - Level 2 Inputs | ||||
Financial assets: | ||||
Cash and cash equivalents, fair value | 13,300 | 17,425 | ||
Securities available-for-sale, fair value | 134,995 | 126,005 | ||
Held-to-maturity Securities, fair value | 39,130 | 37,696 | ||
Loans Held-for-sale, Fair Value Disclosure | 5,183 | 2,413 | ||
Loans and lease receivables, net, fair value | 20,260 | 10,063 | ||
Accrued interest receivable, fair value | 0 | 0 | ||
Interest rate swaps - assets, fair value | 2,470 | 942 | ||
Financial liabilities: | ||||
Deposits, fair value | 440,423 | 381,654 | ||
Federal Home Loan Bank and other borrowings fair value | 276,601 | 206,441 | ||
Junior subordinated notes, fair value | 0 | 0 | ||
Accrued interest payable, fair value | 0 | 0 | ||
Interest Rate Derivative Instruments, Both Hedging and Not Designated as Hedging, Liability at Fair Value, Fair Value Disclosure | 1,180 | 1,064 | ||
Standby letters of credit, fair value | 0 | 0 | ||
Fair Value Measurements - Level 3 Inputs | ||||
Financial assets: | ||||
Cash and cash equivalents, fair value | 0 | 0 | ||
Securities available-for-sale, fair value | 0 | 0 | ||
Held-to-maturity Securities, fair value | 0 | 0 | ||
Loans Held-for-sale, Fair Value Disclosure | 0 | 0 | ||
Loans and lease receivables, net, fair value | 1,549,311 | 1,472,601 | ||
Accrued interest receivable, fair value | 0 | 0 | ||
Interest rate swaps - assets, fair value | 0 | 0 | ||
Financial liabilities: | ||||
Deposits, fair value | 0 | 0 | ||
Federal Home Loan Bank and other borrowings fair value | 0 | 0 | ||
Junior subordinated notes, fair value | 9,951 | 8,836 | ||
Accrued interest payable, fair value | 0 | 0 | ||
Interest Rate Derivative Instruments, Both Hedging and Not Designated as Hedging, Liability at Fair Value, Fair Value Disclosure | 0 | 0 | ||
Standby letters of credit, fair value | 53 | 75 | ||
Fair Value, Measurements, Recurring [Member] | Interest rate swaps | ||||
Financial liabilities: | ||||
Derivative Liability | 1,180 | 1,064 | ||
Fair Value, Measurements, Recurring [Member] | Interest rate swaps | Fair Value Measurements - Level 1 Inputs | ||||
Financial liabilities: | ||||
Derivative Liability | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Interest rate swaps | Fair Value Measurements - Level 2 Inputs | ||||
Financial liabilities: | ||||
Derivative Liability | 1,180 | 1,064 | ||
Fair Value, Measurements, Recurring [Member] | Interest rate swaps | Fair Value Measurements - Level 3 Inputs | ||||
Financial liabilities: | ||||
Derivative Liability | $ 0 | $ 0 |
Fair Value Disclosures (Narrati
Fair Value Disclosures (Narrative Disclosures) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | |||
Fair value, assets, level 1 to level 2 transfers | $ 0 | $ 0 | $ 0 |
Fair value, assets, level 2 to Level 1 transfers | 0 | 0 | 0 |
Fair value, assets, transfers into level 3 | 0 | 0 | 0 |
Fair value, assets, transfers out of level 3 | 0 | 0 | 0 |
Fair value, liabilities, transfers out of level 3 | 0 | 0 | 0 |
Fair value, liabilities, level 1 to level 2 transfers | 0 | 0 | 0 |
Fair value, liabilities, level 2 to level 1 transfers | 0 | 0 | 0 |
Fair value, liabilities, transfers into level 3 | $ 0 | $ 0 | 0 |
Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Quantification of unobservable inputs for level 3 values for impaired loans | 13.00% | 13.00% | |
Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Quantification of unobservable inputs for level 3 values for impaired loans | 75.00% | 75.00% | |
Weighted Average | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Quantification of unobservable inputs for level 3 values for impaired loans | 19.00% | 19.00% | |
Fair Value, Measurements, Nonrecurring [Member] | Impaired loans | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, Fair Value Disclosure | $ 24,940,000 | $ 24,940,000 | 15,147,000 |
Fair Value, Measurements, Nonrecurring [Member] | Foreclosed properties | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, Fair Value Disclosure | 1,454,000 | 1,454,000 | 1,069,000 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value Measurements - Level 3 Inputs | Impaired loans | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, Fair Value Disclosure | 4,680,000 | 4,680,000 | 5,084,000 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value Measurements - Level 3 Inputs | Foreclosed properties | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets, Fair Value Disclosure | $ 0 | $ 0 | $ 0 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Location and Fair Value of Derivative Instruments) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Derivatives not designated as hedging instruments, fair value | ||
Fair value of interest rate swaps | $ 1,180 | $ 942 |
Interest rate swap contracts not designated as hedging instruments - liabilities, gross | 1,180 | 942 |
Effective portion of interest rate cash flow hedge, Fair Value included in accumulated other comprehensive income | 1,290 | 122 |
Interest Rate Cash Flow Hedge Asset at Fair Value | $ 1,290 | |
Interest Rate Cash Flow Hedge Liability at Fair Value | $ 122 | |
Accrued interest receivable and other assets | ||
Derivatives not designated as hedging instruments, fair value | ||
Description of location of interest rate derivative instruments not designated as hedging instruments on balance sheet | Accrued interest receivable and other assets | Accrued interest receivable and other assets |
Description of Location of Interest Rate Cash Flow Hedge Derivative on Balance Sheet | Accrued interest receivable and other assets | |
Accrued interest payable and other liabilities | ||
Derivatives not designated as hedging instruments, fair value | ||
Description of location of interest rate derivative instruments not designated as hedging instruments on balance sheet | Accrued interest payable and other liabilities | Accrued interest payable and other liabilities |
Description of Location of Interest Rate Cash Flow Hedge Derivative on Balance Sheet | Accrued interest payable and other liabilities | |
Accumulated other comprehensive income | ||
Derivatives not designated as hedging instruments, fair value | ||
Description of Location of Interest Rate Cash Flow Hedge Derivative on Balance Sheet | Accumulated other comprehensive income (1) | Accumulated other comprehensive income (1) |
Derivative Financial Instrume_5
Derivative Financial Instruments (Narrative Disclosures) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Derivatives | |||||
Fair value of interest rate swaps | $ 1,180,000 | $ 1,180,000 | $ 942,000 | ||
Interest rate swap contracts not designated as hedging instruments - liabilities, gross | 1,180,000 | 1,180,000 | $ 942,000 | ||
Derivative asset, fair value, amount offset against collateral | 0 | 0 | |||
Pretax unrealized gain on interest rates swaps designated as cash flow hedges | 382,000 | $ 0 | 1,412,000 | $ 0 | |
Gain recognized in income on ineffective portion of hedges | 0 | 0 | |||
To commercial borrowers, corporation receives fixed rates and pays floating rates | |||||
Derivatives | |||||
Fair value of interest rate swaps | 379,000 | 379,000 | |||
Interest rate swap contracts not designated as hedging instruments - liabilities, gross | 1,200,000 | $ 1,200,000 | |||
To commercial borrowers, corporation receives fixed rates and pays floating rates | Minimum | |||||
Derivatives | |||||
Derivative, maturity date | Apr. 30, 2019 | ||||
To commercial borrowers, corporation receives fixed rates and pays floating rates | Maximum | |||||
Derivatives | |||||
Derivative, maturity date | Jul. 15, 2034 | ||||
To dealer countparties, corporation pays fixed rates and receives floating rates | |||||
Derivatives | |||||
Fair value of interest rate swaps | 1,200,000 | $ 1,200,000 | |||
Interest rate swap contracts not designated as hedging instruments - liabilities, gross | 379,000 | 379,000 | |||
Interest rate derivative instruments not designated as hedging instruments at fair value, net | 800,000 | $ 800,000 | |||
To dealer countparties, corporation pays fixed rates and receives floating rates | Minimum | |||||
Derivatives | |||||
Derivative, maturity date | Apr. 30, 2019 | ||||
To dealer countparties, corporation pays fixed rates and receives floating rates | Maximum | |||||
Derivatives | |||||
Derivative, maturity date | Jul. 15, 2034 | ||||
Interest rate swaps | Minimum | |||||
Derivatives | |||||
Derivative, maturity date | Jun. 27, 2027 | ||||
Interest rate swaps | Maximum | |||||
Derivatives | |||||
Derivative, maturity date | Dec. 31, 2027 | ||||
Not Designated as Hedging Instrument | To commercial borrowers, corporation receives fixed rates and pays floating rates | |||||
Derivatives | |||||
Notional value of interest rate swaps with various commercial borrowers | 114,200,000 | $ 114,200,000 | |||
Not Designated as Hedging Instrument | To dealer countparties, corporation pays fixed rates and receives floating rates | |||||
Derivatives | |||||
Notional value of interest rate swaps with various commercial borrowers | 114,200,000 | 114,200,000 | |||
Designated as Hedging Instrument [Member] | Interest rate swaps | |||||
Derivatives | |||||
Notional value of interest rate swaps with various commercial borrowers | $ 30,000,000 | $ 30,000,000 |
Regulatory Capital (Regulatory
Regulatory Capital (Regulatory Capital Ratios) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Compliance with Regulatory Capital Requirements under Banking Regulations | ||
Total capital | $ 225,160 | $ 214,501 |
Total capital to risk-weighted assets | 12.05% | 11.98% |
Total capital, Minimum Required for Capital Adequacy Purposes | $ 149,515 | $ 143,219 |
Total capital to risk-weighted assets, Minimum Required for Capital Adequacy Purposes | 8.00% | 8.00% |
Capital Required for Capital Adequacy Plus Capital Conservation Buffer | $ 184,558 | $ 165,597 |
Capital Required for Capital Adequacy Plus Conservation Buffer to Risk Weighted Assets | 9.875% | 9.25% |
Tier 1 capital | $ 178,220 | $ 169,176 |
Tier 1 capital to risk-weighted assets | 9.54% | 9.45% |
Tier 1 capital, Minimum Required for Capital Adequacy Purposes | $ 112,136 | $ 107,414 |
Tier 1 capital to risk-weighted assets, Minimum Required for Capital Adequacy Purposes | 6.00% | 6.00% |
Tier One Risk Based Capital Required for Capital Adequacy Plus Capital Conservation Buffer | $ 147,179 | $ 129,792 |
Tier One Risk Based Capital Required for Capital Adequacy Plus Conservation Buffer to Risk Weighted Assets | 7.875% | 7.25% |
Common equity tier 1 capital | $ 168,191 | $ 159,157 |
Common equity tier 1 capital to risk-weighted assets | 9.00% | 8.89% |
Common equity tier 1 capital, Minimum Required for Capital Adequacy Purposes | $ 84,102 | $ 80,561 |
Common equity tier 1 capital to risk-weighted assets, Minimum Required for Capital Adequacy Purposes | 4.50% | 4.50% |
Common Equity Tier One Capital Required for Capital Adequacy Plus Capital Conservation Buffer | $ 119,145 | $ 102,939 |
Common Equity Tier One Capital Required for Capital Adequacy Plus Conservation Buffer to Risk Weighted Assets | 6.375% | 5.75% |
Tier 1 leverage capital | $ 178,220 | $ 169,176 |
Tier 1 leverage capital to average assets | 9.34% | 9.54% |
Tier 1 leverage capital, Minimum Required for Capital Adequacy Purposes | $ 76,324 | $ 70,920 |
Tier 1 leverage capital to average assets, Minimum Required for Capital Adequacy Purposes | 4.00% | 4.00% |
Tier One Leverage Capital Required for Capital Adequacy Plus Capital Conservation Buffer | $ 76,324 | $ 70,920 |
Tier One Leverage Capital Required for Capital Adequacy Plus Conservation Buffer to Risk Weighted Assets | 4.00% | 4.00% |
First Business Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations | ||
Total capital | $ 217,620 | $ 207,986 |
Total capital to risk-weighted assets | 11.70% | 11.66% |
Total capital, Minimum Required for Capital Adequacy Purposes | $ 148,847 | $ 142,736 |
Total capital to risk-weighted assets, Minimum Required for Capital Adequacy Purposes | 8.00% | 8.00% |
Capital Required for Capital Adequacy Plus Capital Conservation Buffer | $ 183,733 | $ 165,038 |
Capital Required for Capital Adequacy Plus Conservation Buffer to Risk Weighted Assets | 9.875% | 9.25% |
Total capital, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | $ 186,058 | $ 178,420 |
Total capital to risk-weighted assets, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | 10.00% | 10.00% |
Tier 1 capital | $ 194,435 | $ 186,374 |
Tier 1 capital to risk-weighted assets | 10.45% | 10.45% |
Tier 1 capital, Minimum Required for Capital Adequacy Purposes | $ 111,635 | $ 107,052 |
Tier 1 capital to risk-weighted assets, Minimum Required for Capital Adequacy Purposes | 6.00% | 6.00% |
Tier One Risk Based Capital Required for Capital Adequacy Plus Capital Conservation Buffer | $ 146,521 | $ 129,354 |
Tier One Risk Based Capital Required for Capital Adequacy Plus Conservation Buffer to Risk Weighted Assets | 7.875% | 7.25% |
Tier 1 capital, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | $ 148,847 | $ 142,736 |
Tier 1 capital to risk weighted assets, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | 8.00% | 8.00% |
Common equity tier 1 capital | $ 194,435 | $ 186,374 |
Common equity tier 1 capital to risk-weighted assets | 10.45% | 10.45% |
Common equity tier 1 capital, Minimum Required for Capital Adequacy Purposes | $ 83,726 | $ 80,289 |
Common equity tier 1 capital to risk-weighted assets, Minimum Required for Capital Adequacy Purposes | 4.50% | 4.50% |
Common Equity Tier One Capital Required for Capital Adequacy Plus Capital Conservation Buffer | $ 118,612 | $ 102,591 |
Common Equity Tier One Capital Required for Capital Adequacy Plus Conservation Buffer to Risk Weighted Assets | 6.375% | 5.75% |
Common equity tier 1 capital, Minimum Required to Be Well Capitalized Under Prompt Corrective Action Requirements | $ 120,938 | $ 115,973 |
Common equity tier 1 capital to risk-weighted assets, Minimum Required to Be Well Capitalized Under Prompt Corrective Action Requirements | 6.50% | 6.50% |
Tier 1 leverage capital | $ 194,435 | $ 186,374 |
Tier 1 leverage capital to average assets | 10.24% | 10.56% |
Tier 1 leverage capital, Minimum Required for Capital Adequacy Purposes | $ 75,968 | $ 70,617 |
Tier 1 leverage capital to average assets, Minimum Required for Capital Adequacy Purposes | 4.00% | 4.00% |
Tier One Leverage Capital Required for Capital Adequacy Plus Capital Conservation Buffer | $ 75,968 | $ 70,617 |
Tier One Leverage Capital Required for Capital Adequacy Plus Conservation Buffer to Risk Weighted Assets | 4.00% | 4.00% |
Tier 1 leverage capital, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | $ 94,961 | $ 88,272 |
Tier 1 leverage capital to average assets, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | 5.00% | 5.00% |
Regulatory Capital (Narrative D
Regulatory Capital (Narrative Disclosures) (Details) | 9 Months Ended |
Sep. 30, 2018 | |
Regulatory Capital Requirements [Abstract] | |
Description of possible effects of noncompliance or less than adequately capitalized | Failure to meet minimum capital requirements can result in certain mandatory, and possibly additional discretionary actions on the part of regulators, that if undertaken, could have a direct material effect on the Bank’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory practices. |
Capital Conservation Buffer, Initial Phase In Percent | 0.625% |
Capital Conservation Buffer, Yearly Phase-In Percent Increase | 0.625% |
Capital Conservation Buffer, Fully Phased-In Percent | 2.50% |