Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 08, 2016 | Jun. 30, 2015 | |
Document And Entity Information | |||
Entity Registrant Name | ENTEGRA FINANCIAL CORP. | ||
Entity Central Index Key | 1,522,327 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Is Entity a Well-known Seasoned Issuer? | No | ||
Is Entity a Voluntary Filer? | No | ||
Is Entity's Reporting Status Current? | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 111,700 | ||
Entity Common Stock, Shares Outstanding | 6,498,698 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,015 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and due from banks | $ 8,421 | $ 7,860 |
Interest-earning deposits | 32,229 | 51,122 |
Cash and cash equivalents | 40,650 | $ 58,982 |
Investments - trading | 4,714 | |
Investments - available for sale | 238,862 | $ 219,859 |
Investments - held to maturity (fair value of $41,812 and $30,890 at December 31, 2015 and 2014, respectively) | 41,164 | 29,285 |
Other investments, at cost | 8,834 | 4,908 |
Loans held for sale | 8,348 | 10,761 |
Loans receivable | 624,072 | 540,479 |
Allowance for loan losses | (9,461) | (11,072) |
Fixed assets, net | 17,673 | 13,004 |
Real estate owned | 5,369 | 4,425 |
Interest receivable | 3,554 | 2,925 |
Bank owned life insurance | 20,858 | 20,417 |
Net deferred tax asset | $ 18,830 | 2,089 |
Real estate held for investment | 2,489 | |
Loan servicing rights | $ 2,344 | $ 2,187 |
Goodwill | 711 | |
Core deposit intangible | 590 | |
Other assets | 4,304 | $ 2,910 |
Total assets | 1,031,416 | 903,648 |
Liabilities: | ||
Deposits | 716,617 | 703,117 |
Federal Home Loan Bank advances | 153,500 | 60,000 |
Junior subordinated notes | 14,433 | $ 14,433 |
Other borrowings | 2,198 | |
Post employment benefits | 10,224 | $ 9,759 |
Accrued interest payable | 213 | 323 |
Other liabilities | 2,762 | 8,697 |
Total liabilities | $ 899,947 | $ 796,329 |
Commitments and contingencies (Notes 8 and 23) | ||
Equity: | ||
Preferred stock - no par value, 10,000,000 shares authorized; none issued and outstanding | ||
Common stock - no par value, 50,000,000 shares authorized; 6,546,375 shares issued and outstanding as of December 31, 2015 and 2014 | ||
Common stock held by Rabbi Trust, at cost; 14,000 and 0 shares at December 31, 2015 and 2014, respectively | $ (279) | |
Additional paid in capital | 63,722 | $ 63,651 |
Retained earnings | 69,762 | 45,937 |
Accumulated other comprehensive loss | (1,736) | (2,269) |
Total equity | 131,469 | 107,319 |
Total liabilities and equity | $ 1,031,416 | $ 903,648 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Investment - held to maturity at fair value | $ 41,812 | $ 30,890 |
Preferred stock, par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0 | $ 0 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 6,546,375 | 6,546,375 |
Common stock, shares outstanding | 6,546,375 | 6,546,375 |
Common Stock held by Rabbi Trust | 14,000 | 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest income: | |||
Interest and fees on loans | $ 27,027 | $ 27,597 | $ 27,468 |
Interest on tax exempt loans | 141 | 68 | 67 |
Taxable securities | 5,223 | 4,139 | 3,445 |
Tax-exempt securities | 379 | 347 | 370 |
Interest-earning deposits | 75 | 95 | 31 |
Other | 299 | 199 | 70 |
Total interest and dividend income | 33,144 | 32,445 | 31,451 |
Interest expense: | |||
Deposits | 4,334 | 5,361 | 5,826 |
Federal Home Loan Bank advances | 826 | 703 | 672 |
Junior subordinated notes | 458 | $ 509 | $ 490 |
Other borrowings | 105 | ||
Total interest expense | 5,723 | $ 6,573 | $ 6,988 |
Net interest income | 27,421 | 25,872 | 24,463 |
Provision for loan losses | (1,500) | 33 | 4,358 |
Net interest income after provision for loan losses | 28,921 | 25,839 | 20,105 |
Noninterest income: | |||
Servicing income, net | 341 | 565 | (126) |
Mortgage banking | 774 | 800 | 2,149 |
Gain on sale of SBA loans | 823 | 629 | 258 |
Gain on sale of investments, net | 403 | 657 | $ 358 |
Other than temporary impairment on cost method investment | (3) | (76) | |
Service charges on deposit accounts | 1,269 | 1,203 | $ 1,303 |
Interchange fees | 1,278 | 1,126 | 1,009 |
Bank owned life insurance | 457 | 456 | 482 |
Other | 453 | 719 | 701 |
Total noninterest income | 5,795 | 6,079 | 6,134 |
Noninterest expenses: | |||
Compensation and employee benefits | 14,625 | 11,843 | 11,177 |
Net occupancy | 2,986 | $ 2,697 | $ 2,507 |
Federal Home Loan Bank prepayment penalties | 1,762 | ||
Federal deposit insurance | 905 | $ 1,265 | $ 1,700 |
Professional and advisory | 1,005 | 722 | 547 |
Data processing | 1,213 | $ 1,082 | $ 893 |
Merger-related expenses | 329 | ||
Net cost of operation of real estate owned | 505 | $ 2,970 | $ 5,612 |
Other | 4,300 | 3,188 | 3,743 |
Total noninterest expenses | 27,630 | 23,767 | 26,179 |
Income before taxes | 7,086 | 8,151 | 60 |
Income tax expense (benefit) | (16,739) | 2,208 | 475 |
Net income (loss) | $ 23,825 | $ 5,943 | $ (415) |
Earnings per share - basic and diluted | $ 3.64 | $ 0.91 | |
Average shares outstanding - basic and diluted | 6,546,375 | 6,546,375 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 23,825 | $ 5,943 | $ (415) |
Other comprehensive income (loss): | |||
Change in unrealized holding gains and losses on securities available for sale | (166) | 5,665 | (9,431) |
Reclassification adjustment for securities gains realized in net income | (403) | (657) | (358) |
Amortization of unrealized loss on securities transferred to held to maturity | 984 | 199 | 34 |
Change in deferred tax valuation allowance attributable to unrealized gains and losses on investment securities available for sale | 289 | 1,992 | (3,479) |
Other comprehensive income (loss), before tax | 704 | 7,199 | (13,234) |
Income tax effect related to items of other comprehensive income (loss) | (171) | (1,992) | 3,873 |
Other comprehensive income (loss), after tax | 533 | 5,207 | (9,361) |
Comprehensive income (loss) | $ 24,358 | $ 11,150 | $ (9,776) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Common Stock held by Rabbi Trust | Total |
Beginning Balance at Dec. 31, 2012 | $ 40,409 | $ 1,885 | $ 42,294 | |||
Beginning Balance (in shares) at Dec. 31, 2012 | ||||||
Net income (loss) | $ (415) | (415) | ||||
Other comprehensive income, net of tax | $ (9,361) | $ (9,361) | ||||
Stock compensation expense | ||||||
Purchase of stock to fund Rabbi Trust | ||||||
Ending Balance at Dec. 31, 2013 | $ 39,994 | $ (7,476) | $ 32,518 | |||
Ending Balance (in shares) at Dec. 31, 2013 | ||||||
Net income (loss) | $ 5,943 | 5,943 | ||||
Other comprehensive income, net of tax | $ 5,207 | 5,207 | ||||
Issuance of common stock | $ 65,464 | 65,464 | ||||
Issuance of common stock (in shares) | 6,546,375 | |||||
Common stock issuance costs | (1,813) | $ (1,813) | ||||
Stock compensation expense | ||||||
Purchase of stock to fund Rabbi Trust | ||||||
Ending Balance at Dec. 31, 2014 | $ 63,651 | $ 45,937 | $ (2,269) | $ 107,319 | ||
Ending Balance (in shares) at Dec. 31, 2014 | 6,546,375 | |||||
Net income (loss) | $ 23,825 | 23,825 | ||||
Other comprehensive income, net of tax | $ 533 | $ 533 | ||||
Issuance of common stock | ||||||
Stock compensation expense | $ 71 | $ 71 | ||||
Purchase of stock to fund Rabbi Trust | $ (279) | (279) | ||||
Ending Balance at Dec. 31, 2015 | $ 63,722 | $ 69,762 | $ (1,736) | $ (279) | $ 131,469 | |
Ending Balance (in shares) at Dec. 31, 2015 | 6,546,375 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 23,825 | $ 5,943 | $ (415) |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and leasehold amortization | 1,002 | 875 | 848 |
Security amortization, net | 2,046 | 1,159 | 1,506 |
Provision for loan losses | (1,500) | 33 | 4,358 |
Provision for real estate owned | 250 | $ 2,349 | $ 4,093 |
Share-based compensation expense | 71 | ||
Change in net deferred tax asset | (16,437) | $ 2,121 | $ 429 |
Net increase (decrease) in deferred loan fees | (307) | 237 | (232) |
Gain on sales of securities available for sale | (403) | (657) | $ (358) |
Other than temporary impairment on cost method investment | 3 | 76 | |
Loss on disposal of fixed assets | 3 | 8 | |
Income on bank owned life insurance, net | (441) | (456) | $ (482) |
Mortgage banking income, net | (774) | (800) | (2,149) |
Gain on sale of SBA loans | (823) | (629) | (258) |
Net realized loss on sale of real estate owned | (71) | 49 | 163 |
Loans originated for sale | (35,649) | (31,939) | (65,635) |
Proceeds from sale of loans originated for sale | 39,659 | 28,295 | 63,099 |
Net change in operating assets and liabilities: | |||
Interest receivable | (629) | (252) | 9 |
Loan servicing rights | (157) | (304) | 25 |
Other assets | (1,439) | (544) | 168 |
Postemployment benefits | 465 | (440) | (669) |
Accrued interest payable | (110) | (1,700) | 559 |
Other liabilities | 1,225 | 18 | 373 |
Net cash provided by operating activities | 9,809 | 3,442 | 5,432 |
Activity for investment securities: | |||
Purchases | (129,960) | (115,617) | (113,810) |
Maturities/calls and principal repayments | 56,638 | 30,484 | 21,122 |
Sales | 39,022 | $ 19,170 | $ 36,404 |
Purchase of trading securities | (4,714) | ||
Net (increase) decrease in loans | (59,002) | $ (17,477) | $ 28,041 |
Purchased loans | (25,189) | ||
Net cash received in branch acquisition | 31,878 | ||
Proceeds from sale of real estate owned | 1,495 | $ 4,355 | $ 8,671 |
Real estate cost capitalized | (83) | (68) | (118) |
Purchase of fixed assets | (3,556) | $ (881) | $ (642) |
Disposal of real estate held for investments | 2,430 | ||
Purchase of other investments, at cost | (4,076) | $ (1,462) | $ (287) |
Redemptions of other investments, at cost | 150 | 213 | |
Net cash used in investing activities | (94,967) | (81,283) | $ (20,619) |
Cash flows from financing activities: | |||
Net increase (decrease) in deposits | (26,372) | 18,855 | 9,128 |
Net increase (decrease) in escrow deposits | (23) | 36 | (22) |
Proceeds from FHLB advances | 245,600 | $ 20,000 | $ 15,000 |
Repayment of FHLB advances | (152,100) | ||
Purchase of common stock for Rabbi Trust | (279) | ||
Proceeds from sale of common stock | $ 63,651 | ||
Net cash provided by financing activities | 66,826 | 102,542 | $ 24,106 |
Increase (decrease) in cash and cash equivalents | (18,332) | 24,701 | 8,919 |
Cash and cash equivalents, beginning of period | 58,982 | 34,281 | 25,362 |
Cash and cash equivalents, end of period | 40,650 | 58,982 | 34,281 |
Cash paid during the year for: | |||
Interest on deposits and other borrowings | $ 5,833 | 8,273 | 6,429 |
Income taxes | 150 | 43 | |
Noncash investing and financing activities: | |||
Real estate acquired in satisfaction of mortgage loans | $ 3,350 | 2,200 | 8,651 |
Loans originated for disposition of real estate owned | $ 3,260 | 1,596 | 2,591 |
Transfer of investment securities available for sale to held to maturity | 4,473 | $ 20,954 | |
Purchased loans and investments to be settled | $ 7,185 | ||
Transfer of real estate owned to real estate held for investment | $ 2,500 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | NOTE 1. ORGANIZATION Entegra Financial Corp. (the Company) was incorporated on May 31, 2011 and became the holding company for Entegra Bank (the Bank) on September 30, 2014 upon the completion of Macon Bancorps merger with and into the Company, pursuant to which Macon Bancorp converted from the mutual to stock form of organization. The Companys primary operation is its investment in the Bank. The Company also owns 100% of the common stock of Macon Capital Trust I (the Trust), a Delaware statutory trust formed in 2003 to facilitate the issuance of trust preferred securities. The Bank is a North Carolina state-chartered savings bank and has a wholly owned subsidiary, Entegra Services, Inc., which previously owned a real estate investment property and was inactive as of December 31, 2015. The consolidated financials are presented in these financial statements. The Bank operates as a community-focused retail bank, originating primarily real estate based mortgage, consumer and commercial loans and accepting deposits from consumers and small businesses. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting and reporting policies of the Company conform, in all material respects, to U.S. generally accepted accounting principles, or GAAP, and to general practices within the banking industry. The following summarizes the more significant of these policies and practices. Estimates Material estimates that are particularly susceptible to significant change, in the near term, relate to the determination of the allowance for loan losses and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. In connection with the determination of the allowance for loan losses and the valuation of foreclosed real estate, management obtains independent appraisals for significant properties. Principles of Consolidation Reclassification Business Combinations Cash and Cash Equivalents Trading Assets Securities Available for Sale and Held to Maturity Held to maturity securities represent those securities that we have the positive intent and ability to hold to maturity and are carried at amortized cost. Realized gains and losses on the sale of securities and other-than-temporary impairment (OTTI) charges are recorded as a component of noninterest income in the Consolidated Statements of Operations. Realized gains and losses on the sale of securities are determined using the specific-identification method. Bond premiums are amortized to the call date and bond discounts are accreted to the maturity date, both on a level yield basis. We perform a quarterly review of our securities to identify those that may indicate OTTI. Our policy for OTTI within the debt securities portfolio is based upon a number of factors, including, but not limited to, the length of time and extent to which the estimated fair value has been less than cost, the financial condition of the underlying issuer and the ability of the issuer to meet contractual obligations. Other factors include the likelihood of the securitys ability to recover any decline in its estimated fair value and whether management intends to sell the security, or if it is more likely than not that management will be required to sell the investment security prior to the securitys recovery. The Company reclassified certain of its securities from available for sale to held to maturity during the years ended December 31, 2014 and 2013 in an effort to minimize the impact of future interest rate changes on Accumulated Other Comprehensive Income (Loss). The difference between the book values and fair values at the date of the transfer will continue to be reported in a separate component of Accumulated Other Comprehensive Income (Loss), and will be amortized into income over the remaining life of the securities as an adjustment of yield in a manner consistent with the amortization of a premium. Concurrently, the revised book values of the transferred securities (represented by the market value on the date of transfer) are being amortized back to their par values over the remaining life of the security as an adjustment of yield in a manner consistent with the amortization of a discount. Loans Held for Sale We generally sell the guaranteed portion of SBA loans in the secondary market and retain the unguaranteed portion in our portfolio. Upon sale of the guaranteed portion of an SBA loan, we recognize a portion of the gain on sale into income and defer a portion of the gain related to the relative fair value of the unguaranteed loan balance we retain. The deferred gain is amortized into income over the remaining life of the loan. Loans Receivable Generally, consumer loans are charged down to their estimated collateral value after reaching 90 days past due. The number of days past due is determined by the amount of time from when the payment was due based on contractual terms. Commercial loans are charged off as management becomes aware of facts and circumstances that raise doubt as to the collectability of all or a portion of the principal and when we believe a confirmed loss exists. The Company began originating and selling the guaranteed portion of small business administration (SBA) loans into the secondary market during the year ended December 31, 2013. When the Company retains the right to service a sold SBA loan, the previous carrying amount is allocated between the guaranteed portion of the loan sold, the unguaranteed portion of the loan retained and the retained SBA servicing right based on their relative fair values on the date of transfer. Nonaccrual Loans For loans modified in a troubled debt restructuring, the loan is generally placed on non-accrual until there is a period of satisfactory payment performance by the borrower (either immediately before or after the restructuring), generally defined as six months, and the ultimate collectability of all amounts contractually due is not in doubt. Troubled Debt Restructurings (TDR) All TDRs are considered to be impaired loans and will be reported as an impaired loan for the remaining life of the loan, unless the restructuring agreement specifies an interest rate equal to or greater than the rate that would be accepted at the time of the restructuring for a new loan with comparable risk and it is fully expected that the original principal and interest will be collected according to the restructured agreement. We may also remove a loan from TDR and impaired status if the TDR is subsequently restructured and at the time of the subsequent restructuring the borrower is not experiencing financial difficulties and, under the terms of the subsequent restructuring agreement, no concession has been granted to the borrower. Allowance for Loan Losses (ALL) A loan is considered impaired when it is probable that we will be unable to collect all principal and interest payments due according to the original contractual terms of the loan agreement. We individually evaluate all loans classified as substandard or nonaccrual greater than $350,000 for impairment. If the impaired loan is considered collateral dependent, a charge-off is taken based upon the appraised value of the property (less an estimate of selling costs if foreclosure is anticipated). If the impaired loan is not collateral dependent, a specific reserve is established based upon an estimate of the future discounted cash flows after consideration of modifications and the likelihood of future default and prepayment. The allowance for non-impaired loans consists of a base historical loss reserve and a qualitative reserve. Prior to the first quarter of 2015, we more heavily weighted the most recent four quarters than the least recent four quarters. Beginning in the first quarter of 2015, we no longer weight any quarters to calculate our average loss rates. This change in weighting did not have a material impact on our allowance for loan losses methodology. The loss rates for the base loss reserve are segmented into 13 loan categories and contain loss rates ranging from approximately 0.5% to 11%. The qualitative reserve adjusts the average loss rates utilized in the base loss reserve for trends in the following internal and external factors: ● Non-accrual and classified loans ● Collateral values ● Loan concentrations and loan growth ● Economic conditions including unemployment rates, building permits, and a regional economic index. Qualitative reserve adjustment factors are decreased for favorable trends and increased for unfavorable trends. These factors are subject to further adjustment as economic and other conditions change. Fixed Assets Real Estate Owned Subsequent to foreclosure, real estate owned is recorded at the lower of carrying amount or fair value less estimated costs to sell. Valuations are periodically performed by management, but not less than annually, and an additional allowance for losses is established by a charge to Net Cost of Operation of Real Estate Owned in the Consolidated Statements of Operations, if necessary. Other Investments, at cost FHLB stock is carried at cost and evaluated for impairment based on the ultimate recoverability of the par value. The Company has evaluated its FHLB stock and concluded that it is not impaired because the FHLB Atlanta is currently paying cash dividends and redeeming stock at par. The FHLB requires members to purchase and hold a specified level of stock based upon on the members asset value, level of borrowings and participation in other programs offered. Stock in the FHLB is non-marketable and is redeemable at the discretion of the FHLB. Members do not purchase stock in the FHLB for the same reasons that traditional equity investors acquire stock in an investor-owned enterprise. Rather, members purchase stock to obtain access to the low-cost products and services offered by the FHLB. Unlike equity securities of traditional for-profit enterprises, the stock of the FHLB does not provide its holders with an opportunity for capital appreciation because, by regulation, FHLB stock can only be purchased, redeemed and transferred at par value. Both cash and stock dividends are reported as Other interest income in the Consolidated Statements of Operations. Bank Owned Life Insurance (BOLI) Real Estate Held for Investment Loan Servicing Rights (LSR) Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal (generally 25 basis points for residential mortgage loans and 100 basis points for SBA loans) or a fixed amount per loan, and are recorded as income when earned. Changes in fair value of LSRs are netted against loan servicing fee income and reported as Servicing income (expense), net in the Consolidated Statements of Operations. Goodwill and Other Intangible Assets The goodwill impairment analysis is a two-step test. The first, used to identify potential impairment, involves comparing each reporting units estimated fair value to its carrying value, including goodwill. If the estimated fair value of a reporting unit exceeds its carrying value, goodwill is considered not to be impaired. If the carrying value exceeds estimated fair value, there is an indication of potential impairment and the second step is performed to measure the amount of impairment. Authoritative guidance gives entities the option of first performing a qualitative assessment to test goodwill for impairment on a reporting-unit basis. If, after performing the qualitative assessment, an entity concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the entity would perform the two-step goodwill impairment test. However, if, after applying the qualitative assessment, the entity concludes that it is not more likely than not that the fair value is less than the carrying amount, the two-step goodwill impairment test is not required. Core deposit intangibles are amortized over the estimated useful lives of the deposit accounts acquired (generally seven years on a straight line basis). Derivative Financial Instruments Interest Rate Lock Commitments and Forward Sale Contracts Advertising Expense Income Taxes Deferred income tax assets and liabilities are determined using the asset and liability method and are reported net in the Consolidated Balance Sheets. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax basis of assets and liabilities and recognizes enacted changes in tax rate and laws. When deferred tax assets are recognized, they are subject to a valuation allowance based on managements judgment as to whether realization is more likely than not. In determining the need for a valuation allowance, the Company considers the following sources of taxable income: ● Future reversals of existing taxable temporary differences ● Future taxable income exclusive of reversing temporary differences and carry forwards ● Taxable income in prior carryback years ● Tax planning strategies that would, if necessary, be implemented As a result of the analysis above, the Company concluded that a valuation allowance was not necessary as of December 31, 2015. The Company maintained a full valuation allowance as of December 31, 2014 except for consideration of certain tax planning strategies. Accrued taxes represent the net estimated amount due to taxing jurisdictions and are reported in other assets or other liabilities, as appropriate, in the Consolidated Balance Sheets. We evaluate and assess the relative risks and appropriate tax treatment of transactions and filing positions after considering statutes, regulations, judicial precedent and other information and maintain tax accruals consistent with the evaluation of these relative risks and merits. Changes to the estimate of accrued taxes occur periodically due to changes in tax rates, interpretations of tax laws, the status of examinations being conducted by taxing authorities and changes to statutory, judicial and regulatory guidance. These changes, when they occur, can affect deferred taxes and accrued taxes, as well as the current periods income tax expense and can be significant to our operating results. Tax positions are recognized as a benefit only if it is more likely than not that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50 percent likely of being realized on examination. For tax positions not meeting the more likely than not test, no tax benefit is recorded. Allowance for Unfunded Commitments Junior Subordinated Notes Segments Subsequent Events Recently Issued Accounting Standards In January 2014, the Financial Accounting Standards Board (FASB) amended the Receivables topic of the Accounting Standards Codification (ASC). The amendments are intended to resolve diversity in practice with respect to when a creditor should reclassify a collateralized consumer mortgage loan to REO. In addition, the amendments require a creditor to reclassify a collateralized consumer mortgage loan to REO upon obtaining legal title to the real estate collateral, or the borrower voluntarily conveying its interest in the real estate collateral to the creditor to satisfy the loan through a deed in lieu of foreclosure or similar legal agreement. As an emerging growth company, the amendments are effective for the Company for annual periods beginning after December 15, 2014, and interim periods within annual periods beginning after December 15, 2015. For non-emerging growth companies, the amendments are effective for annual periods, and interim periods within those annual periods beginning after December 15, 2014. Early implementation of the guidance is permitted. In implementing this guidance, assets that are reclassified from real estate to loans are measured at the carrying value of the real estate at the date of adoption. Assets reclassified from loans to real estate are measured at the lower of the net amount of the loan receivable or the fair value of the real estate less costs to sell at the date of adoption. The Company has adopted the amendments and the related disclosures are included in Note 6. The amendments did not have a material effect on the Companys financial statements. In January 2015, the FASB issued guidance to eliminate from GAAP the concept of an extraordinary item, which is an event or transaction that is both (1) unusual in nature and (2) infrequently occurring. Under the new guidance, an entity will no longer (1) segregate an extraordinary item from the results of ordinary operations; (2) separately present an extraordinary item on its income statement, net of tax, after income from continuing operations; or (3) disclose income taxes and earnings-per-share data applicable to an extraordinary item. The amendments will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company will apply the guidance prospectively. The Company does not expect these amendments to have a material effect on its financial statements. In February 2015, the FASB issued guidance which amends the consolidation requirements and significantly changes the consolidation analysis required under GAAP. Although the amendments are expected to result in the deconsolidation of many entities, the Company will need to reevaluate all its previous consolidation conclusions. As an emerging growth company, the amendments will be effective for the Company for fiscal years beginning after December 15, 2015, and interim periods beginning after December 15, 2017. For non-emerging growth companies, the amendments will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption of the guidance is permitted (including during an interim period), provided that the guidance is applied as of the beginning of the annual period containing the adoption date. The Company does not expect these amendments to have a material effect on its financial statements. In April 2015, the FASB issued guidance that will require debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. This update affects disclosures related to debt issuance costs but does not affect existing recognition and measurement guidance for these items. As an emerging growth company, the guidance will be effective for the Company for fiscal years beginning after December 15, 2015, and interim periods beginning after December 15, 2016. For non-emerging growth companies, the guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption of the guidance is permitted. The Company does not expect these amendments to have a material effect on its financial statements. In August 2015, the FASB deferred the effective date of ASU 2014-09, Revenue from Contracts with Customers. As a result of the deferral, the guidance in ASU 2014-09 will be effective for the Company for annual periods beginning after December 15, 2018, and interim periods within annual reporting periods beginning after December 15, 2019. For non-emerging growth companies, the guidance will be effective for reporting periods beginning after December 15, 2017. The Company will apply the guidance using a full retrospective approach. The Company does not expect these amendments to have a material effect on its financial statements. In August 2015, the FASB issued amendments to the Interest topic of the ASC to clarify the Securities and Exchange Commission (SEC) staffs position on presenting and measuring debt issuance costs incurred in connection with line-of-credit arrangements. The amendments were effective upon issuance. The Company does not expect these amendments to have a material effect on its financial statements. In January 2016, the FASB amended the Financial Instruments topic of the ASC to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments will be effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. For non-emerging growth companies, the guidance will be effective for reporting periods beginning after December 15, 2017, including interim periods within those fiscal years. The Company will apply the guidance by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values will be applied prospectively to equity investments that exist as of the date of adoption of the amendments. The Company does not expect these amendments to have a material effect on its financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) which requires the recognition of a right of use asset and related lease liability by lessees for leases classified as operating leases under current GAAP. Topic 842, which replaces the current guidance under Topic 840, retains a distinction between finance leases and operating leases. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee also will not significantly change from current GAAP. For leases with a term of twelve months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize right of use assets and lease liabilities. The guidance will be effective for the Company for reporting periods beginning after December 15, 2019, including interim periods within those fiscal years with an early adoption permitted. For non-emerging growth companies, the guidance will be effective for reporting periods beginning after December 15, 2018, including interim periods within those fiscal years. The Company must apply a modified retrospective transition approach for the applicable 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. Management is currently evaluating the impact of Topic 842 on the Companys consolidated financial statements. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Companys financial position, results of operations or cash flows. |
STOCK CONVERSION AND CHANGE IN
STOCK CONVERSION AND CHANGE IN CORPORATE FORM | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
STOCK CONVERSION AND CHANGE IN CORPORATE FORM | NOTE 3. STOCK CONVERSION AND CHANGE IN CORPORATE FORM On January 23, 2014, the Board of Directors of Macon Bancorp adopted a Plan of Conversion (the Plan of Conversion) which provided for the reorganization of Macon Bancorp from a North Carolina chartered mutual holding company into a stock holding company, Entegra Financial Corp., incorporated under the laws of the State of North Carolina (the Conversion). In connection with the Conversion, the Company sold 6,546,375 shares of common stock at an offering price of $10.00 per share and received gross sales proceeds of $65.5 million. The Company recognized $1.8 million in reorganization and stock issuance costs which have been deducted from the gross sales proceeds. Of the $63.7 million in net sales proceeds, $44.6 million, or approximately 70%, was contributed to the capital of the Bank upon completion of the Conversion on September 30, 2014. Common Stock Offering Summary (Dollars in thousands) Gross proceeds $ 65,464 Issuance costs (1,813 ) Net proceeds $ 63,651 Contributed to the Bank $ 44,581 Retained by the Company 19,070 $ 63,651 On September 30, 2014, liquidation accounts were established by the Company and the Bank for the benefit of eligible depositors of the Bank as defined in the Plan of Conversion. Each eligible depositor will have a pro rata interest in the liquidation accounts for each of his or her deposit accounts based upon the proportion that the balance of each such account bears to the balance of all deposit accounts of the Bank as of the dates specified in the Plan of Conversion. The liquidation accounts will be maintained for the benefit of eligible depositors who continue to maintain their deposit accounts in the Bank. The liquidation accounts will be reduced annually to the extent that eligible depositors reduce their qualifying deposits. In the unlikely event of a complete liquidation of the Bank or the Company or both, and only in such event, eligible depositors who continue to maintain accounts will be entitled to receive a distribution from the liquidation accounts before any distribution may be made with respect to common stock. Neither the Company nor the Bank may declare or pay a cash dividend if the effect thereof would cause its equity to be reduced below either the amount required for the liquidation accounts or the regulatory capital requirements imposed by the Companys or the Banks regulators. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
ACQUISITIONS | NOTE 4. ACQUISITIONS On December 11, 2015, the Bank completed its acquisition of two branches from Arthur State Bank (ASB). In accordance with the Purchase and Assumption Agreement, dated August 13, 2015, by and between the Bank and ASB (the P&A Agreement), the Bank acquired approximately $39.9 million of deposits, approximately $4.7 million of performing loans, and the bank facilities and certain other assets of the acquired branches. In consideration of the purchased assets and transferred liabilities, the Bank paid (a) the recorded investment of the loans acquired, (b) the fair value, or approximately $2.1 million, for the branch facilities and certain assets located at the acquired branches, and (c) a deposit premium of $1.2 million, equal to 2.87% of the average daily deposits for the 30- day period immediately prior to the acquisition date. The branch acquisition was accounted for using the acquisition method of accounting in accordance with ASC 805, Business Combinations, and accordingly the assets and liabilities were recorded at their fair values on the date of acquisition. Fair values are preliminary and subject to refinement for up to one year after the closing date of the acquisition as information relative to closing date fair values become available. The following table summarizes the assets acquired and liabilities assumed at the date of acquisition and their initial fair values: (Dollars in thousands) As Recorded by ASB Fair Value Adjustments As Recorded by the Company Assets Cash and cash equivalents $ 33,076 $ $ 33,076 Loans 4,717 (72 ) (a) 4,645 Premises and equipment 2,080 2,080 Core deposit intangible 590 (b) 590 Other assets 16 16 Total assets $ 39,889 $ 518 $ 40,407 Liabilities Deposits: Noninterest-bearing demand $ 22,084 $ 22,084 Interest-bearing demand 15 15 Money market 2,556 2,556 Savings 7,242 7,242 Time deposits 7,967 31 (c) 7,998 Total deposits 39,864 31 39,895 Other liabilities 25 25 Total liabilities 39,889 31 39,920 Net identifiable assets acquired over liabilities assumed 487 487 Goodwill 711 711 Net assets acquired over liabilities assumed $ $ 1,198 $ 1,198 Consideration: Cash paid as deposit premium $ 1,198 Fair value of total consideration transferred $ 1,198 (a) - Adjustment reflects the fair value adjustments based on the Companys evaluation of the acquired loan portfolio. (b) - Adjustment reflects the recording of the core deposit intangible on the acquired core deposit accounts. This amount was recorded by the Company as an identifiable intangible asset and will be amortized as an expense on a straight-line basis over the average life of the core deposit base, which is estimated to be 7 years. (c) - Adjustment reflects the fair value adjustment of time deposits. On November 23, 2015, the Company entered into a definitive agreement with Oldtown Bank (Oldtown) pursuant to which the Company will acquire Oldtown in an all cash transaction valued at approximately $13.5 million. Oldtown currently operates one branch in Waynesville, North Carolina and will add approximately $112 million in assets, $66 million in loans, and $91 million in deposits upon closing. The transaction is expected to close early in April of 2016 subject to customary closing conditions, including regulatory approvals, and approval of Oldtowns shareholders. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | NOTE 5. INVESTMENT SECURITIES The following table presents the holdings of our trading account as of December 31, 2015 and December 31, 2014: December 31, 2015 2014 (Dollars in thousands) Cash $ 4,714 $ The trading account is held in a Rabbi Trust to generate returns that seek to offset changes in liabilities related to market risk of certain deferred compensation agreements. These deferred compensation liabilities related to the Rabbi Trust were $4.7 million and $0.4 million at December 31, 2015 and December 31, 2014, respectively, and are included in Post Employment Benefits in the Consolidated Balance Sheets. There were no changes in the fair value of the trading account for unrealized or realized gains or losses for the years ended December 31, 2015 and 2014. The amortized cost and estimated fair values of securities available for sale (AFS) are summarized as follows: December 31, 2015 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. government agencies $ 25,633 $ 123 $ (36 ) $ 25,720 Municipal securities 39,751 311 (204 ) 39,858 Mortgage-backed securities 172,327 276 (1,429 ) 171,174 U.S. Treasury securities 1,500 10 1,510 Mutual funds 602 (2 ) 600 $ 239,813 $ 720 $ (1,671 ) $ 238,862 December 31, 2014 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. government agencies $ 39,540 $ 65 $ (123 ) $ 39,482 Municipal securities 25,483 225 (150 ) 25,558 Mortgage-backed securities 153,128 643 (1,053 ) 152,718 U.S. Treasury securities 1,500 10 1,510 Mutual funds 590 1 591 $ 220,241 $ 944 $ (1,326 ) $ 219,859 The amortized cost and estimated fair values of securities held to maturity (HTM) are summarized as follows: December 31, 2015 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. government agencies $ 15,877 $ 645 $ (23 ) $ 16,499 Municipal securities 12,428 199 (93 ) 12,534 Mortgage-backed securities 4,834 4 (62 ) 4,776 U.S. Treasury securities 1,002 (7 ) 995 Corporate debt securities 7,023 25 (40 ) 7,008 $ 41,164 $ 873 $ (225 ) $ 41,812 December 31, 2014 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. government agencies $ 23,193 $ 1,420 $ (5 ) $ 24,608 Municipal securities 4,392 190 4,582 Trust preferred securities 1,000 1,000 Corporate debt securities 700 700 $ 29,285 $ 1,610 $ (5 ) $ 30,890 During the year ended December 31, 2014, the Company transferred the following investment securities from available for sale to held to maturity: At Date of Transfer During the Year Ended December 31, 2014 (Dollars in thousands) Book value $ 4,473 Market value 4,399 Unrealized loss $ 74 There were no transfers of investment securities from available for sale to held to maturity during the year ended December 31, 2015. Information pertaining to the activity of unrealized losses related to HTM securities (before the impact of income taxes) previously recognized in accumulated other comprehensive income (AOCI) is summarized below. The amortization includes the accelerated amortization of unrealized losses for securities called during the period. Year Ended December 31, (Dollars in thousands) 2015 2014 2013 Beginning unrealized loss related to HTM securities previously recognized in AOCI $ 1,887 $ 2,012 $ Additions for transfers to HTM 74 2,046 Amortization of unrealized losses on HTM securities previously recognized in AOCI (984 ) (199 ) (34 ) Ending unrealized loss related to HTM securities previously recognized in AOCI $ 903 $ 1,887 $ 2,012 Information pertaining to securities with gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: December 31, 2015 Less Than 12 Months More Than 12 Months Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (Dollars in thousands) Held to Maturity: U.S. government agencies $ 5,705 $ 23 $ $ $ 5,705 $ 23 Municipal securities 4,365 93 4,365 93 Mortgage-backed securities 2,693 62 2,693 62 U.S. Treasury securities 995 7 995 7 Corporate debt securities 4,911 40 4,911 40 $ 18,669 $ 225 $ $ $ 18,669 $ 225 Available for Sale: U.S. government agencies $ 13,317 $ 36 $ $ $ 13,317 $ 36 Municipal securities 18,769 176 947 28 19,716 204 Mortgage-backed securities 102,419 926 20,905 503 123,324 1,429 Mutual funds 600 2 600 2 $ 135,105 $ 1,140 $ 21,852 $ 531 $ 156,957 $ 1,671 December 31, 2014 Less Than 12 Months More Than 12 Months Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (Dollars in thousands) Held to Maturity: U.S. government agencies $ 1,995 $ 5 $ $ $ 1,995 $ 5 $ 1,995 $ 5 $ $ $ 1,995 $ 5 Available for Sale: U.S. government agencies $ 14,472 $ 15 $ 7,893 $ 108 $ 22,365 $ 123 Municipal securities 4,306 49 8,409 101 12,715 150 Mortgage-backed securities 38,563 217 46,204 836 84,767 1,053 $ 57,341 $ 281 $ 62,506 $ 1,045 $ 119,847 $ 1,326 Information pertaining to the number of securities with unrealized losses is detailed in the table below. Management of the Company believes all unrealized losses as of December 31, 2015 and 2014 represent temporary impairment. The unrealized losses have resulted from temporary changes in the interest rate market and not as a result of credit deterioration. We do not intend to sell and it is not likely that we will be required to sell any of the securities referenced in the table below before recovery of their amortized cost. December 31, 2015 Less Than 12 Months More Than 12 Months Total U.S. government agencies 13 13 Municipal securities 51 2 53 Mortgage-backed securities 71 15 86 U.S. Treasury securities 1 1 Corporate debt securities 9 9 Mutual funds 1 1 146 17 163 December 31, 2014 Less Than 12 Months More Than 12 Months Total U.S. government agencies 11 3 14 Municipal securities 9 19 28 Mortgage-backed securities 26 27 53 46 49 95 The Company received proceeds from sales of securities available for sale and corresponding gross realized gains and losses as follows: For the Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Gross proceeds $ 39,022 $ 19,170 $ 36,404 Gross realized gains 423 680 522 Gross realized losses 20 164 The Company had securities pledged against deposits and borrowings of approximately $69.6 million and $10.7 million at December 31, 2015 and 2014, respectively. The amortized cost and estimated fair value of investments in debt securities at December 31, 2015, by contractual maturity, is shown below. Mortgage-backed securities have not been scheduled because expected maturities will differ from contractual maturities when borrowers have the right to prepay the obligations. Available for Sale Amortized Cost Fair Value (Dollars in thousands) Less than 1 year $ 1,103 $ 1,100 Over 1 year through 5 years 27,088 27,172 After 5 years through 10 years 15,695 15,701 Over 10 years 23,600 23,715 67,486 67,688 Mortgage-backed securities 172,327 171,174 Total $ 239,813 $ 238,862 Held to Maturity Amortized Cost Fair Value (Dollars in thousands) Over 1 year through 5 years $ 1,002 $ 995 After 5 years through 10 years 13,218 13,189 Over 10 years 22,110 22,852 36,330 37,036 Mortgage-backed securities 4,834 4,776 Total $ 41,164 $ 41,812 |
LOANS RECEIVABLE
LOANS RECEIVABLE | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
LOANS RECEIVABLE | NOTE 6. LOANS RECEIVABLE Loans receivable balances are summarized as follows: December 31, 2015 2014 (Dollars in thousands) Real estate mortgage loans: One-to four-family residential $ 248,633 $ 227,209 Commercial real estate 214,413 179,435 Home equity loans and lines of credit 53,446 56,561 Residential construction 7,848 7,823 Other construction and land 57,316 50,298 Total real estate loans 581,656 521,326 Commercial and industrial 41,046 19,135 Consumer 3,639 3,200 Total commercial and consumer 44,685 22,335 Loans receivable, gross 626,341 543,661 Less: Net deferred loan fees (1,388 ) (1,695 ) Unamortized premium 557 Unamortized discount (1,438 ) (1,487 ) Loans receivable, net $ 624,072 $ 540,479 The Bank had $119.5 million and $117.9 million of loans pledged as collateral to secure funding with the Federal Home Loan Bank of Atlanta (FHLB) at December 31, 2015 and 2014, respectively. The Bank also had $88.4 million and $92.8 million of loans pledged as collateral to secure funding with the Federal Reserve Bank (FRB) Discount Window at December 31, 2015 and 2014, respectively. During January 2014, the Bank purchased the remaining participation balance of certain commercial real estate loans from the Federal Deposit Insurance Corporation (FDIC). The Bank had previously purchased a 50% participation in the loans from an institution that was subsequently taken into receivership by the FDIC. At the date of purchase, the outstanding loan balance purchased was $9.3 million and the loans were purchased at a total discount of $2.6 million. The loans were not deemed to be impaired at the time of purchase. Subsequent to the transaction, $2.8 million of the participation balance purchased was repaid, resulting in the Bank recognizing approximately $0.5 million of the initial discount, in addition to recognizing $0.3 million of previously collected but deferred interest. In addition, the Bank restructured a $1.8 million loan in the second quarter of 2014 and recognized $0.2 million of the discount in interest income. The Bank recognized $0.3 million in interest income for each of the years ended December 31, 2015 and 2014 related to the accretion of the initial discount on these loans. During the year ended December 31, 2015, the Bank purchased the remaining participation balance of a commercial real estate loan from another community bank. The Bank had previously purchased a 54% participation in the loan from the participating institution. At the date of purchase, the outstanding loan balance purchased was $1.6 million and the loan was purchased at a discount of $0.5 million. The loan was not deemed to be impaired at the time of purchase. During the year ended December 31, 2015, the Bank purchased other externally sourced loans of which $16.0 million is included in the loans receivable balance as of December 31, 2015. These loans were comprised of $5.1 million in commercial SBA guaranteed loans, $8.3 million in commercial and industrial participation loans, and a $2.6 million commercial real estate whole loan purchase. Included in loans receivable and other borrowings at December 31, 2015 are $2.2 million in participated loans that did not qualify for sale accounting. Interest expense on the other borrowings accrues at the same rate as the interest income recognized on the loans receivable, resulting in no effect to net income. The following table presents the activity related to the discount on purchased loans: For the Year Ended December 31, (Dollars in thousands) 2015 2014 2013 Discount on purchased loans, beginning of period $ 1,487 $ $ Additional discount for new purchases 557 2,607 Accretion (311 ) (365 ) Discount applied to charge-offs (295 ) Interest income recognized for repayments and restructurings (755 ) Discount on purchased loans, end of period $ 1,438 $ 1,487 $ The aggregate amount of extensions of credit to executive officers and directors made in the ordinary course of business as of and for the years ended December 31 is detailed in the table below: December 31, 2015 2014 Beginning of year $ 9,307 $ 9,827 New loans 30 1,695 Repayments (407 ) (2,215 ) End of year $ 8,930 $ 9,307 |
ALLOWANCE FOR LOAN LOSSES
ALLOWANCE FOR LOAN LOSSES | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
ALLOWANCE FOR LOAN LOSSES | NOTE 7. ALLOWANCE FOR LOAN LOSSES The following tables present, by portfolio segment, the activity in the allowance for loan losses: Year Ended December 31, 2015 One-to four Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) Beginning balance $ 2,983 $ 2,717 $ 1,333 $ 510 $ 2,936 $ 308 $ 285 $ 11,072 Provision (251 ) 388 200 (235 ) (1,741 ) 272 (133 ) $ (1,500 ) Charge-offs (536 ) (52 ) (540 ) (137 ) (9 ) (48 ) $ (1,322 ) Recoveries 259 168 104 3 342 32 303 1,211 Ending balance $ 2,455 $ 3,221 $ 1,097 $ 278 $ 1,400 $ 603 $ 407 $ 9,461 Year Ended December 31, 2014 One-to four Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) Beginning balance $ 3,693 $ 4,360 $ 1,580 $ 501 $ 3,516 $ 336 $ 265 $ 14,251 Provision (201 ) 408 310 9 (232 ) (58 ) (203 ) 33 Charge-offs (702 ) (2,415 ) (598 ) (566 ) (133 ) (140 ) (4,554 ) Recoveries 193 364 41 218 163 363 1,342 Ending balance $ 2,983 $ 2,717 $ 1,333 $ 510 $ 2,936 $ 308 $ 285 $ 11,072 Year Ended December 31, 2013 One-to four Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) Beginning balance $ 4,620 $ 2,973 $ 2,002 $ 429 $ 4,059 $ 379 $ 412 $ 14,874 Provision (77 ) 3,471 316 154 430 (57 ) 121 4,358 Charge-offs (1,283 ) (2,209 ) (760 ) (193 ) (1,512 ) (17 ) (675 ) (6,649 ) Recoveries 433 125 22 111 539 31 407 1,668 Ending balance $ 3,693 $ 4,360 $ 1,580 $ 501 $ 3,516 $ 336 $ 265 $ 14,251 The following tables present, by portfolio segment and reserving methodology, the allocation of the allowance for loan losses and the gross investment in loans: December 31, 2015 One-to four Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) Allowance for loan losses Individually evaluated for impairment $ 344 $ 61 $ 6 $ $ 61 $ 38 $ $ 510 Collectively evaluated for impairment 2,111 3,160 1,091 278 1,339 565 407 8,951 $ 2,455 $ 3,221 $ 1,097 $ 278 $ 1,400 $ 603 $ 407 $ 9,461 Loans Receivable Individually evaluated for impairment $ 6,315 $ 9,013 $ 313 $ $ 1,509 $ 318 $ $ 17,468 Collectively evaluated for impairment 242,318 205,400 53,133 7,848 55,807 40,728 3,639 608,873 $ 248,633 $ 214,413 $ 53,446 $ 7,848 $ 57,316 $ 41,046 $ 3,639 $ 626,341 December 31, 2014 One-to four Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) Allowance for loan losses Individually evaluated for impairment $ 719 $ 235 $ 14 $ $ 705 $ 3 $ $ 1,676 Collectively evaluated for impairment 2,264 2,482 1,319 510 2,231 305 285 9,396 $ 2,983 $ 2,717 $ 1,333 $ 510 $ 2,936 $ 308 $ 285 $ 11,072 Loans Receivable Individually evaluated for impairment $ 9,912 $ 17,828 $ 1,686 $ $ 3,911 $ 328 $ $ 33,665 Collectively evaluated for impairment 217,297 161,607 54,875 7,823 46,387 18,807 3,200 509,996 $ 227,209 $ 179,435 $ 56,561 $ 7,823 $ 50,298 $ 19,135 $ 3,200 $ 543,661 Portfolio Quality Indicators The Companys portfolio grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled. The Companys internal credit risk grading system is based on experiences with similarly graded loans, industry best practices, and regulatory guidance. Credit risk grades are refreshed each quarter, at which time management analyzes the resulting information, as well as other external statistics and factors, to track loan performance. The Companys internally assigned grades pursuant to the Board-approved lending policy are as follows: ● Pass (1-5) Acceptable loans with any identifiable weaknesses appropriately mitigated. ● Special Mention (6) Potential weakness or identifiable weakness present without appropriate mitigating factors; however, loan continues to perform satisfactorily with no material delinquency noted. This may include some deterioration in repayment capacity and/or loan-to-value of securing collateral. ● Substandard (7) Significant weakness that remains unmitigated, most likely due to diminished repayment capacity, serious delinquency, and/or marginal performance based upon restructured loan terms. ● Doubtful (8) Significant weakness that remains unmitigated and collection in full is highly questionable or improbable. ● Loss (9) Collectability is unlikely resulting in immediate charge-off. Beginning as of March 31, 2015, we no longer risk grade consumer purposed loans within all categories for which the individual loan balance is less than $417,000. These loan types provide limited credit information subsequent to origination and therefore may not be properly risk graded within our standard risk grading system. All of our consumer purposed loans are now considered ungraded and will be analyzed on a performing versus non-performing basis. The non-performing ungraded loans will be deemed substandard when determining our classified assets. Consumer purposed loans may include residential loans, home equity loans and lines of credit, residential lot loans, and other consumer loans. This change in risk grading methodology did not have any material impact on our allowance for loan losses calculation. Description of segment and class risks Each of our portfolio segments and the classes within those segments are subject to risks that could have an adverse impact on the credit quality of our loan portfolio. Management has identified the most significant risks as described below which are generally similar among our segments and classes. While the list in not exhaustive, it provides a description of the risks that management has determined are the most significant. One-to four family residential We centrally underwrite each of our one-to four family residential loans using credit scoring and analytical tools consistent with the Board-approved lending policy and internal procedures based upon industry best practices and regulatory directives. Loans to be sold to secondary market investors must also adhere to investor guidelines. We also evaluate the value and marketability of that collateral. Common risks to each class of non-commercial loans, including one-to-four family residential, include risks that are not specific to individual transactions such as general economic conditions within our markets, particularly unemployment and potential declines in real estate values. Personal events such as death, disability or change in marital status also add risk to non-commercial loans. Commercial real estate Commercial mortgage loans are primarily dependent on the ability of our customers to achieve business results consistent with those projected at loan origination resulting in cash flow sufficient to service the debt. To the extent that a customers business results are significantly unfavorable versus the original projections, the ability for our loan to be serviced on a basis consistent with the contractual terms may be at risk. While these loans are secured by real property and possibly other business assets such as inventory or accounts receivable, it is possible that the liquidation of the collateral will not fully satisfy the obligation. Other commercial real estate loans consist primarily of loans secured by multifamily housing and agricultural loans. The primary risk associated with multifamily loans is the ability of the income-producing property that collateralizes the loan to produce adequate cash flow to service the debt. High unemployment or generally weak economic conditions may result in our customer having to provide rental rate concessions to achieve adequate occupancy rates. The performance of agricultural loans are highly dependent on favorable weather, reasonable costs for seed and fertilizer, and the ability to successfully market the product at a profitable margin. The demand for these products is also dependent on macroeconomic conditions that are beyond the control of the borrower. Home equity and lines of credit Home equity loans are often secured by first or second liens on residential real estate, thereby making such loans particularly susceptible to declining collateral values. A substantial decline in collateral value could render our second lien position to be effectively unsecured. Additional risks include lien perfection inaccuracies and disputes with first lienholders that may further weaken our collateral position. Further, the open-end structure of these loans creates the risk that customers may draw on the lines in excess of the collateral value if there have been significant declines since origination. Residential construction and other construction and land Residential mortgage construction loans are typically secured by undeveloped or partially developed land with funds to be disbursed as home construction is completed contingent upon receipt and satisfactory review of invoices and inspections. Declines in real estate values can result in residential mortgage loan borrowers having debt levels in excess of the collaterals current market value. Non-commercial construction and land development loans can experience delays in completion and/or cost overruns that exceed the borrowers financial ability to complete the project. Cost overruns can result in foreclosure of partially completed collateral with unrealized value and diminished marketability. Commercial We centrally underwrite each of our commercial loans based primarily upon the customers ability to generate the required cash flow to service the debt in accordance with the contractual terms and conditions of the loan agreement. We strive to gain a complete understanding of our borrowers businesses including the experience and background of the principals. To the extent that the loan is secured by collateral, which is a predominant feature of the majority of our commercial loans, or other assets including accounts receivable and inventory, we gain an understanding of the likely value of the collateral and what level of strength it brings to the loan transaction. To the extent that the principals or other parties are obligated under the note or guaranty agreements, we analyze the relative financial strength and liquidity of each guarantor. Common risks to each class of commercial loans include risks that are not specific to individual transactions such as general economic conditions within our markets, as well as risks that are specific to each transaction including volatility or seasonality of cash flows, changing demand for products and services, personal events such as death, disability or change in marital status, and reductions in the value of our collateral. Consumer The consumer loan portfolio includes loans secured by personal property such as automobiles, marketable securities, other titled recreational vehicles including boats and motorcycles, as well as unsecured consumer debt. The value of underlying collateral within this class is especially volatile due to potential rapid depreciation in values since date of loan origination in excess of principal repayment. The following tables present the recorded investment in gross loans by loan grade: December 31, 2015 Loan Grade One-to Four- Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) 1 $ $ 65 $ $ $ $ 10,336 $ $ 10,401 2 4,446 99 4,545 3 18,518 11,396 1,358 525 1,479 1,734 35,010 4 46,942 74,542 1,961 2,036 13,850 18,586 1 157,918 5 33,886 97,469 6,648 1,347 22,864 9,274 592 172,080 6 2,903 13,171 1,106 1,718 297 19,195 7 3,335 13,106 579 458 17,478 $ 105,584 $ 214,195 $ 9,967 $ 5,014 $ 40,490 $ 40,784 $ 593 $ 416,627 Ungraded Loan Exposure: Performing $ 141,771 $ 218 $ 43,158 $ 2,834 $ 16,707 $ 262 $ 3,046 $ 207,996 Nonperforming 1,278 321 119 1,718 Subtotal $ 143,049 $ 218 $ 43,479 $ 2,834 $ 16,826 $ 262 $ 3,046 $ 209,714 Total $ 248,633 $ 214,413 $ 53,446 $ 7,848 $ 57,316 $ 41,046 $ 3,639 $ 626,341 December 31, 2014 Loan Grade One-to Four- Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) 1 $ $ 68 $ $ $ $ 2,511 $ 20 $ 2,599 2 100 100 3 63,065 14,356 5,978 690 5,154 483 454 90,180 4 58,948 37,349 10,424 2,327 9,027 2,917 419 121,411 5 44,445 90,397 10,486 3,048 21,024 6,399 179 175,978 6 5,714 21,232 882 574 2,451 429 1 31,283 7 7,400 14,139 1,568 5,404 555 29,066 $ 179,572 $ 177,541 $ 29,338 $ 6,639 $ 43,060 $ 13,394 $ 1,073 $ 450,617 Ungraded Loan Exposure: Performing $ 46,247 $ 1,736 $ 26,864 $ 1,119 $ 7,073 $ 5,741 $ 2,125 $ 90,905 Nonperforming 1,390 158 359 65 165 2 2,139 Subtotal $ 47,637 $ 1,894 $ 27,223 $ 1,184 $ 7,238 $ 5,741 $ 2,127 $ 93,044 Total $ 227,209 $ 179,435 $ 56,561 $ 7,823 $ 50,298 $ 19,135 $ 3,200 $ 543,661 Delinquency Analysis of Loans by Class The following tables include an aging analysis of the recorded investment of past-due financing receivables by class. The Company does not accrue interest on loans greater than 90 days past due. December 31, 2015 30-59 Days Past Due 60-89 Days Past Due 90 Days and Over Past Due Total Past Due Current Total Loans Receivable (Dollars in thousands) One-to four-family residential $ 5,610 $ 1,260 $ 1,205 $ 8,075 $ 240,558 $ 248,633 Commercial real estate 1,585 605 2,190 212,223 214,413 Home equity and lines of credit 369 38 322 729 52,717 53,446 Residential construction 7,848 7,848 Other construction and land 208 397 138 743 56,573 57,316 Commercial 625 625 40,421 41,046 Consumer 12 4 16 3,623 3,639 Total $ 8,409 $ 1,699 $ 2,270 $ 12,378 $ 613,963 $ 626,341 December 31, 2014 30-59 Days Past Due 60-89 Days Past Due 90 Days and Over Past Due Total Past Due Current Total Loans Receivable (Dollars in thousands) One-to four-family residential $ 6,298 $ 448 $ 2,669 $ 9,415 $ 217,794 $ 227,209 Commercial real estate 2,136 909 1,006 4,051 175,384 179,435 Home equity and lines of credit 557 528 759 1,844 54,717 56,561 Residential construction 65 65 7,758 7,823 Other construction and land 1,530 964 473 2,967 47,331 50,298 Commercial 22 22 19,113 19,135 Consumer 247 4 1 252 2,948 3,200 Total $ 10,768 $ 2,875 $ 4,973 $ 18,616 $ 525,045 $ 543,661 Impaired Loans The following table presents investments in loans considered to be impaired and related information on those impaired loans: December 31, 2015 December 31, 2014 Recorded Balance Unpaid Principal Balance Specific Allowance Recorded Balance Unpaid Principal Balance Specific Allowance (Dollars in thousands) Loans without a valuation allowance One-to four-family residential $ 4,289 $ 4,403 $ $ 5,943 $ 6,096 $ Commercial real estate 7,226 8,809 14,231 16,515 Home equity and lines of credit 213 328 1,537 1,912 Residential construction Other construction and land 658 818 1,901 2,579 Commercial $ 12,386 $ 14,358 $ $ 23,612 $ 27,102 $ Loans with a valuation allowance One-to four-family residential $ 2,026 $ 2,026 $ 344 $ 3,969 $ 4,028 $ 719 Commercial real estate 1,787 1,787 61 3,597 3,745 235 Home equity and lines of credit 100 100 6 149 149 14 Residential construction Other construction and land 851 851 61 2,010 2,010 705 Commercial 318 318 38 328 328 3 $ 5,082 $ 5,082 $ 510 $ 10,053 $ 10,260 $ 1,676 Total One-to four-family residential $ 6,315 $ 6,429 $ 344 $ 9,912 $ 10,124 $ 719 Commercial real estate 9,013 10,596 61 17,828 20,260 235 Home equity and lines of credit 313 428 6 1,686 2,061 14 Residential construction Other construction and land 1,509 1,669 61 3,911 4,589 705 Commercial 318 318 38 328 328 3 $ 17,468 $ 19,440 $ 510 $ 33,665 $ 37,362 $ 1,676 The following table presents average impaired loans and interest income recognized on those impaired loans, by class segment, for the periods indicated: For the Year Ended December 31, 2015 2014 2013 Average Investment in Impaired Loans Interest Income Recognized Average Investment in Impaired Loans Interest Income Recognized Average Investment in Impaired Loans Interest Income Recognized (Dollars in thousands) Loans without a valuation allowance One-to four-family residential $ 6,072 $ 174 $ 6,079 $ 242 $ 4,586 $ 160 Commercial real estate 7,999 299 14,255 664 9,610 527 Home equity and lines of credit 213 9 1,728 53 1,255 46 Residential construction Other construction and land 668 30 2,332 70 6,490 528 Commercial $ 14,952 $ 512 $ 24,394 $ 1,029 $ 21,941 $ 1,261 Loans with a valuation allowance One-to four-family residential $ 2,056 $ 88 $ 4,048 $ 137 $ 5,664 $ 221 Commercial real estate 1,808 82 3,715 152 3,660 161 Home equity and lines of credit 100 4 149 6 511 19 Residential construction Other construction and land 1,502 37 2,042 81 937 40 Commercial 323 19 334 20 347 21 $ 5,789 $ 230 $ 10,288 $ 396 $ 11,119 $ 462 Total One-to four-family residential $ 8,128 $ 262 $ 10,127 $ 379 $ 10,250 $ 381 Commercial real estate 9,807 381 17,970 816 13,270 688 Home equity and lines of credit 313 13 1,877 59 1,766 65 Residential construction Other construction and land 2,170 67 4,374 151 7,427 568 Commercial 323 19 334 20 347 21 $ 20,741 $ 742 $ 34,682 $ 1,425 $ 33,060 $ 1,723 Nonperforming Loans The following table summarizes the balances of nonperforming loans. Certain loans classified as Troubled Debt Restructurings (TDRs) and impaired loans may be on non-accrual status even though they are not contractually delinquent. December 31, 2015 2014 (Dollars in thousands) One-to four-family residential $ 2,893 $ 5,661 Commercial real estate 3,628 7,011 Home equity loans and lines of credit 320 1,347 Residential construction 65 Other construction and land 384 2,679 Commercial 55 15 Consumer 2 Non-performing loans $ 7,280 $ 16,780 Troubled Debt Restructurings (TDR) The following tables summarize TDR loans as of the dates indicated: December 31, 2015 Performing Nonperforming Total TDRs TDRs TDRs (Dollars in thousands) One-to-four family residential $ 4,182 $ 211 $ 4,393 Commercial real estate 5,134 2,922 8,056 Home equity and lines of credit 313 313 Residential construction Other construction and land 1,259 250 1,509 Commercial 318 12 330 $ 11,206 $ 3,395 $ 14,601 December 31, 2014 Performing Nonperforming Total TDRs TDRs TDRs (Dollars in thousands) One-to-four family residential $ 5,760 $ 715 $ 6,475 Commercial real estate 10,710 3,797 14,507 Home equity and lines of credit 443 443 Residential construction Other construction and land 1,519 672 2,191 Commercial 328 16 344 $ 18,760 $ 5,200 $ 23,960 Loan modifications that were deemed TDRs at the time of the modification during the period presented are summarized in the tables below: For the Year Ended December 31, 2015 (Dollars in thousands) Number of Loans Pre-modification Outstanding Recorded Investment Post-modification Outstanding Recorded Investment Forgiveness of principal: Commercial real estate 1 1,988 1,693 1 $ 1,988 $ 1,693 Extended payment terms: Commercial real estate 1 833 833 1 $ 833 $ 833 For the Year Ended December 31, 2014 (Dollars in thousands) Number of Loans Pre-modification Outstanding Recorded Investment Post-modification Outstanding Recorded Investment Below market interest rate: One-to-four family residential 3 $ 487 $ 404 Commercial real estate 1 280 280 Home equity loans and lines of credit 1 50 40 Other construction and land 1 151 151 6 $ 968 $ 875 Extended payment terms: Other construction and land 2 $ 720 596 Commercial real estate 7 6,770 5,332 Commercial 1 18 12 10 $ 7,508 $ 5,940 The following table summarizes TDRs that defaulted during the year ended December 31, 2014 and which were modified as TDRs within the previous 12 months. There were no TDRs that defaulted during the year ended December 31, 2015 and which were modified as TDRs within the previous 12 months. For the Year Ended December 31, 2014 Number of Loans Recorded Investment (Dollars in thousands) Below market interest rate: One-to-four family residential 1 $ 135 Home equity and lines of credit 1 50 Other construction and land 2 $ 185 Extended payment terms: Commercial real estate 1 $ 215 |
CONCENTRATIONS OF CREDIT RISK
CONCENTRATIONS OF CREDIT RISK | 12 Months Ended |
Dec. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS OF CREDIT RISK | NOTE 8. CONCENTRATIONS OF CREDIT RISK A substantial portion of the Companys loan portfolio is represented by loans in western North Carolina, northern Georgia, and Upstate South Carolina. The capacity and willingness of the Companys debtors to honor their contractual obligations is dependent upon general economic conditions and the health of the real estate market within its general lending area. The majority of the Companys loans, commitments, and lines of credit have been granted to customers in its primary market area and substantially all of these instruments are collateralized by real estate or other assets. The Company, as a matter of policy, does not extend credit to any single borrower or group of related borrowers in excess of its legal lending limit which was $19.1 million at December 31, 2015 and $17.5 million at December 31, 2014. The Companys loans were concentrated in the following categories: December 31, 2015 2014 One-to four-family residential 39.7 % 41.8 % Commercial real estate 34.2 33.0 Home equity and lines of credit 8.5 10.4 Residential construction 1.3 1.4 Other construction and land 9.1 9.3 Commercial 6.6 3.5 Consumer 0.6 0.6 Total loans 100.0 % 100.0 % |
FIXED ASSETS
FIXED ASSETS | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
FIXED ASSETS | NOTE 9. FIXED ASSETS Fixed assets are summarized as follows: December 31, 2015 2014 (Dollars in thousands) Land and improvements $ 8,181 $ 7,035 Buildings 16,826 13,079 Furniture, fixtures, and equipment 7,569 7,643 Construction in process 31 63 Total fixed assets 32,607 27,820 Less accumulated depreciation (14,934 ) (14,816 ) Fixed assets, net $ 17,673 $ 13,004 Depreciation and leasehold amortization expense was $1.0 million, $0.9 million, and $0.8 million for the years ended December 31, 2015, 2014, and 2013, respectively. The Bank has entered into operating leases in connection with its retail branch operations. These leases expire at various dates through December 2017. Total rental expense was approximately $0.1 million for the each of the years ended December 31, 2015, 2014 and 2013. Following is a schedule of approximate annual future minimum lease payments under operating leases that have initial or remaining lease terms in excess of one year: 2016 76 2017 24 Total minimum lease commitments $ 100 |
REAL ESTATE OWNED
REAL ESTATE OWNED | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |
REAL ESTATE OWNED | NOTE 10. REAL ESTATE OWNED The following tables summarizes real estate owned and changes in the valuation allowance for real estate owned as of and for the periods indicated: As of December 31, (Dollars in thousands) 2015 2014 Real estate owned, gross $ 6,741 $ 6,185 Less: Valuation allowance 1,372 1,760 Real estate owned, net $ 5,369 $ 4,425 Year Ended December 31, (Dollars in thousands) 2015 2014 2013 Valuation allowance, beginning $ 1,760 $ 5,560 $ 3,635 Provision charged to expense 171 2,349 4,093 Reduction due to disposal (559 ) (6,149 ) (2,168 ) Valuation allowance, ending $ 1,372 $ 1,760 $ 5,560 As of December 31, 2015, the Company had $0.7 million in loans secured by residential real estate properties for which formal foreclosure proceedings were in process. As of December 31, 2015, the Company had $1.4 million of residential real estate properties included in real estate owned. |
BANK OWNED LIFE INSURANCE (BOLI
BANK OWNED LIFE INSURANCE (BOLI) | 12 Months Ended |
Dec. 31, 2015 | |
Investments, All Other Investments [Abstract] | |
BANK OWNED LIFE INSURANCE (BOLI) | NOTE 11. BANK OWNED LIFE INSURANCE (BOLI) The following table summarizes the composition of our BOLI: December 31, 2015 2014 (Dollars in thousands) Separate account $ 12,388 $ 12,194 General account 7,636 7,410 Hybrid 834 813 Total $ 20,858 $ 20,417 The assets of the separate account BOLI are invested in the PIMCO Mortgage-backed Securities Account which is composed primarily of Treasury and Agency mortgage-backed securities with a rating of Aaa and repurchase agreements with a rating of P-1. |
LOAN SERVICING
LOAN SERVICING | 12 Months Ended |
Dec. 31, 2015 | |
Transfers and Servicing [Abstract] | |
LOAN SERVICING | NOTE 12. LOAN SERVICING Loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of mortgage and SBA loans serviced for others is detailed below. December 31, 2015 2014 2013 (Dollars in thousands) $ 251,492 $ 246,348 $ 255,475 The following summarizes the activity in the balance of loan servicing rights: December 31, 2015 2014 2013 (Dollars in thousands) Loan servicing rights, beginning of period $ 2,187 $ 1,883 $ 1,908 Capitalization from loans sold 544 385 736 Fair value adjustment (387 ) (81 ) (761 ) Loan servicing rights, end of period $ 2,344 $ 2,187 $ 1,883 The Company held custodial escrow deposits of $0.4 and $0.6 million for loan servicing accounts at December 31, 2015 and 2014, respectively. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | NOTE 13. GOODWILL AND OTHER INTANGIBLE ASSETS The Company had $0.7 million of goodwill as of December 31, 2015. The following is a summary of changes in the carrying amounts of goodwill: Year Ended December 31, 2015 2014 Balance at beginning of period $ $ Additions: Goodwill from ASB branch acquisition 711 Balance at end of period $ 711 $ The Companys other intangible assets consist of core deposit intangibles related to core deposits acquired in the ASB branch acquisition. The following is a summary of gross carrying amounts and accumulated amortization of core deposit intangibles: Year Ended December 31, 2015 2014 Gross carrying amount $ 590 $ Accumulated amortization $ 590 $ Core deposit intangibles are amortized using the straight-line method over their estimated useful lives of seven years. Estimated amortization expense for core deposit intangibles for each of the next five years is $0.1 million per year. |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |
DEPOSITS | NOTE 14. DEPOSITS The following table summarizes deposit balances and the related interest expense by type of deposit: As of and for the Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Balance Interest Expense Balance Interest Expense Balance Interest Expense Noninterest-bearing demand $ 121,062 $ $ 86,110 $ $ 70,127 $ Interest-bearing demand 103,198 136 92,877 149 81,645 134 Money market 180,377 558 178,320 983 183,504 1,122 Savings 35,838 33 27,591 36 25,593 36 Time deposits 276,142 3,607 318,219 4,193 323,357 4,534 $ 716,617 $ 4,334 $ 703,117 $ 5,361 $ 684,226 $ 5,826 Contractual maturities of time deposit accounts are summarized as follows: December 31, 2015 (Dollars in thousands) 2016 $ 146,853 2017 55,057 2018 46,555 2019 13,590 2020 7,197 Thereafter 6,890 $ 276,142 The Company had time deposit accounts in amounts of $250 thousand or more totaling $26.4 million and $39.5million at December 31, 2015 and 2014, respectively. As of December 31, 2015, the Company had no brokered deposit holdings outstanding. The Company held brokered deposits of approximately $9.2 million at December 31, 2014. The Company had deposits from related parties of $1.7 million and $1.8 million at December 31, 2015 and 2014, respectively. |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
BORROWINGS | NOTE 15. BORROWINGS The Company has total credit availability with the FHLB of up to 30% of assets, subject to the availability of qualified collateral. The Company pledges as collateral for these borrowings certain investment securities, its FHLB stock, and its entire loan portfolio of qualifying mortgages (as defined) under a blanket collateral agreement with the FHLB. At December 31, 2015, the Company had unused borrowing capacity with the FHLB of $9.5 million based on collateral pledged at that date. The Company had total additional credit availability with FHLB of $141.6 million as of December 31, 2015 if additional collateral was pledged. The following tables summarize the outstanding FHLB advances as of the dates indicated: December 31, 2015 Balance Type Rate Maturity (Dollars in thousands) $ 45,000 Fixed Rate 0.30 % 2/5/2016 5,000 Fixed Rate 0.39 % 3/28/2016 5,000 Fixed Rate 0.52 % 3/30/2016 10,000 Fixed Rate 0.47 % 3/31/2016 5,000 Fixed Rate 0.49 % 6/6/2016 5,000 Fixed Rate 0.69 % 6/30/2016 5,000 Fixed Rate 0.51 % 6/30/2016 5,000 Fixed Rate 0.74 % 7/1/2016 20,000 Daily Rate 0.49 % 7/21/2016 10,000 Fixed Rate 0.58 % 9/28/2016 5,000 Fixed Rate 0.79 % 12/5/2016 5,000 Fixed Rate 0.98 % 12/30/2016 5,000 Fixed Rate 0.74 % 12/30/2016 1,000 Fixed Rate 0.87 % 5/11/2017 2,000 Fixed Rate 1.02 % 6/12/2017 5,000 Fixed Rate 1.38 % 12/29/2017 2,000 Fixed Rate 1.25 % 5/11/2018 10,000 Fixed Rate 1.83 % 4/10/2019 2,500 Fixed Rate 1.77 % 6/11/2019 1,000 Fixed Rate 1.78 % 5/11/2020 $ 153,500 0.65 % December 31, 2014 Balance Type Rate Maturity (Dollars in thousands) $ 10,000 Fixed 0.23 % 3/30/2015 5,000 Fixed 0.37 % 6/30/2015 5,000 Fixed 0.50 % 12/30/2015 5,000 Fixed 0.69 % 6/30/2016 5,000 Fixed 0.98 % 12/30/2016 5,000 Fixed 1.38 % 12/29/2017 10,000 Fixed 1.83 % 4/10/2019 15,000 Variable 2.79 % 4/10/2020 $ 60,000 1.37 % The scheduled annual maturities of FHLB advances and respective weighted average rates, are as follows: December 31, 2015 Year Balance Weighted Average Rate (Dollars in thousands) 2016 130,000 0.49 % 2017 8,000 1.23 % 2018 2,000 1.25 % 2019 12,500 1.82 % 2020 1,000 1.78 % $ 153,500 0.65 % The Company also maintained approximately $48.2 million in borrowing capacity with the Federal Reserve discount window as of December 31, 2015. The Company had no Federal Reserve discount window borrowings outstanding at December 31, 2015 or 2014. The rate charged on discount window borrowings is currently the Fed Funds target rate plus 0.50% (1.00% as of December 31, 2015). |
JUNIOR SUBORDINATED DEBT
JUNIOR SUBORDINATED DEBT | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
JUNIOR SUBORDINATED DEBT | NOTE 16. JUNIOR SUBORDINATED DEBT The Company issued $14.4 million of junior subordinated notes to its wholly owned subsidiary, Macon Capital Trust I, to fully and unconditionally guarantee the trust preferred securities issued by the Trust. These notes qualify as Tier I capital for the Company. The notes accrue and pay interest quarterly at a rate per annum, reset quarterly, equal to 90-day LIBOR plus 2.80% (3.34% at December 31, 2015). The notes mature on March 30, 2034. The Company has the right to redeem the notes, in whole or in part, on or after March 30, 2009 at a price equal to 100% of the principal amount plus accrued and unpaid interest. In addition, the Company may redeem the notes in whole (but not in part) upon the occurrence of a capital disqualification event, an investment company event, or a tax event at a specified redemption price as defined in the indenture. The Company also may, at its option, defer the payment of interest on the notes for a period up to 20 consecutive quarters, provided that interest will also accrue on the deferred payments of interest. The Company had previously deferred interest on the notes from December 31, 2010 to December 30, 2014. As of December 31, 2015, the Company was current on all interest payments due. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
EMPLOYEE BENEFIT PLANS | NOTE 17. EMPLOYEE BENEFIT PLANS The Company maintains an employee savings plan under Section 401(k) of the Internal Revenue Code. This plan covers substantially all full-time employees who have attained the age of twenty-one. Employees may contribute a percentage of their annual gross salary as limited by the federal tax laws. The Company matches employee contributions based on the plan guidelines. The Company contribution totaled $0.4 million, $0.2 million, and $0.2 million for the years ended December 31, 2015, 2014, and 2013. The Company has a compensated expense policy that allows employees to accrue paid time off for vacation, sick or other unexcused absences up to a specified number of days each year. Employees may sell back a limited amount of unused time at the end of each year or convert the time to an accrued sick time account which is forfeited if unused at termination, but no carry-over or payout of unused time is permitted. |
POST-EMPLOYMENT BENEFITS
POST-EMPLOYMENT BENEFITS | 12 Months Ended |
Dec. 31, 2015 | |
Postemployment Benefits [Abstract] | |
POST-EMPLOYMENT BENEFITS | NOTE 18. POST-EMPLOYMENT BENEFITS The Company has established several nonqualified deferred compensation and post-employment programs providing benefits to certain directors and key management employees. No new participants have been admitted to any of the plans since 2009 and existing benefit levels have been frozen. A summary of the key terms and accounting for each plan are as follows: ● Supplemental Executive Retirement Plan (SERP) provides a post-retirement income stream to several current and former executives. The estimated present value of the future benefits to be paid during a post-retirement period of 216 months is accrued over the period from the effective date of the agreement to the expected date of retirement. The SERP is an unfunded plan and is considered a general contractual obligation of the Company. For the years ended December 31, 2015, 2014, and 2013, the Company recorded expense related to the SERP utilizing a discount rate of 4.0%, 7.0%, and 7.0%, respectively. ● CAP Equity Plan provides a post-retirement benefit payable in cash to several current and former officers and directors. During 2015, the Company funded a Rabbi Trust to generate returns that seek to offset changes in liabilities related to market risk of certain deferred compensation agreements associated with the Plan. Some Plan participants elected to have their benefits tied to the value of specific assets, including, for example, the Companys common stock. The remaining participants elected to continue receiving interest of 8% which is accrued on such participants unpaid balance after termination from the Company, subject to the terms of the Plan. The Plan was frozen in 2009, and no additional deferrals are allowed. ● Director Consultation Plan provides a post-retirement monthly benefit for continuing to provide consulting services as needed. The gross amounts of the future payments are accrued. ● Life Insurance Plan provides an endorsement split dollar benefit to several current and former executives, under which the Company has agreed to maintain an insurance policy during the executives retirement and to provide the executive with a death benefit. The estimated cost of insurance for the portion of the policy expected to be paid as a split dollar death benefit in each post-retirement year is measured for the period between expected retirement age and the earlier of (a) expected mortality and (b) age 95. The resulting amount is then allocated on a present value basis to the period ending on the participants full eligibility date. A discount rate of 4% and life expectancy based on the 2001 Valuation Basic Table has been assumed. The following table summarizes the liabilities for each plan as of the dates indicated: December 31, 2015 2014 (Dollars in thousands) SERP $ 4,435 $ 3,653 Cap Equity 4,890 5,308 Director Consultation 258 225 Life Insurance 641 573 $ 10,224 $ 9,759 The expense related to the plans noted above totaled $1.4 million, $0.6 million, and $0.6 million for the years ended December 31, 2015, 2014, and 2013, respectively. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 19. SHARE-BASED COMPENSATION The Company provides stock-based awards through its 2015 Long-Term Stock Incentive Plan which provides for awards of restricted stock, restricted stock units, stock options, and performance units to directors, officers, and employees. The cost of equity-based awards under the 2015 Long-Term Stock Incentive Plan generally is based on the fair value of the awards on their grant date. The maximum number of shares that may be utilized for awards under the plan is 654,637, including 458,246 for stock options and 196,391 for awards of restricted stock and restricted stock units. Shares of common stock awarded under the 2015 Long-Term Stock Incentive Plan may be issued from authorized but unissued shares or shares purchased on the open market. Share-based compensation expense related to stock options and restricted stock units recognized for the year ended December 31, 2015 was $0.1 million. The table below presents stock option activity and related information: (Dollars in thousands, except per share data) Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at December 31, 2014 $ Granted 366,000 18.55 Exercised Forfeited Outstanding at December 31, 2015 366,000 $ 18.55 9.92 $ 296 Exercisable at December 31, 2015 $ $ The fair value of each option award is estimated on the date of the grant using the Black-Scholes option pricing model. The Company granted 366,000 options during the year ended December 31, 2015 with a fair value of $3.46 per option. The risk-free interest rate is based on a U.S. Treasury instrument with a life that is similar to the expected life of the option grant. The expected term of the options is based on a calculated average life using the simplified method defined in and permitted by SEC Staff Accounting Bulletin No. 110 for newly public companies. Because the Company is a newly public company, expected volatility is estimated based on the trading history for a composite index of U.S. Thrifts of similar size. The expected dividend yield is based upon current yield on date of grant. The following table illustrates the assumptions for the Black-Scholes model used in determining the fair value of options granted in the year ended December 31, 2015: Year Ended December 31, 2015 Fair value per option $ 3.46 Expected life (years) 6.5 years Expected stock price volatility 12 % Expected dividend yield 0.00 % Risk-free interest rate 1.99 % Expected forfeiture rate 0.00 % At December 31, 2015, the Company had $1.2 million of unrecognized compensation expense related to stock options. The remaining period over which compensation cost related to unvested stock options is expected to be recognized was 4.92 years at December 31, 2015. No options were vested as of December 31, 2015. All unexercised options expire ten years after the grant date. The table below presents restricted stock unit activity and related information: Restricted Stock Units Weighted Average Grant Date Fair Value Unvested restricted stock units at December 31, 2014 $ Granted 157,100 18.55 Vested Forfeited Unvested restricted stock units at December 31, 2015 157,100 $ 18.55 At December 31, 2015, unrecognized compensation expense was $2.9 million related to restricted stock units. The weighted-average period over which compensation cost related to unvested awards is expected to be recognized was 4.92 years at December 31, 2015. No restricted stock awards were vested at December 31, 2015. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 20. INCOME TAXES Income tax expense (benefit) is summarized as follows: For the Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Current Federal $ (150 ) $ 112 $ 46 State (25 ) Deferred 2,361 2,852 782 Change in valuation allowance (18,950 ) (731 ) (353 ) Total income tax expense (benefit) $ (16,739 ) $ 2,208 $ 475 The differences between actual income tax expense and the amount computed by applying the federal statutory income tax rate of 35% to income before income taxes for the periods indicated is reconciled as follows: For the Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Computed income tax expense $ 2,480 $ 2,853 $ 21 Deferred tax valuation allowance (18,950 ) (731 ) (353 ) State income tax, net of federal benefit 165 271 76 Nontaxable municipal security income (126 ) (115 ) (123 ) Nontaxable BOLI income (160 ) (182 ) (190 ) Other (148 ) 112 1,044 Actual income tax expense (benefit) $ (16,739 ) $ 2,208 $ 475 Effective tax rate -236.2 % 27.1 % 791.7 % The components of net deferred taxes as of the periods indicated are summarized as follows: As of December 31, 2015 2014 (Dollars in thousands) Deferred tax assets: Allowance for loan losses $ 3,557 $ 4,235 Deferred compensation and post employment benefits 3,498 3,514 Non-accrual interest 286 202 Valuation reserve for other real estate 516 673 North Carolina NOL carryover 988 1,404 Federal NOL carryover 10,750 12,392 Unrealized losses on securities 697 867 Other 772 393 Gross deferred tax assets 21,064 23,680 Less: valuation allowance (19,810 ) Total deferred tax assets 21,064 3,870 Deferred tax liabilities: Fixed assets 499 461 Loan servicing rights 881 813 Deferred loan costs 708 413 Prepaid expenses 146 94 Total deferred tax liabilities 2,234 1,781 Net deferred tax asset $ 18,830 $ 2,089 As of December 31, 2015 and 2014, the Company maintained a valuation allowance of $0 and $19.8 million against its deferred tax asset. During 2015, the Company completed an analysis of all positive and negative evidence in assessing the need to maintain the valuation allowance against its net deferred tax asset. As a result of this analysis, the Company determined that significant positive evidence existed that would support the reversal of the valuation allowance including the following: ● A pattern of sustained profitability, excluding non-recurring items, since the first quarter of 2014; ● A 3 year cumulative profit; ● Forecasted earnings sufficient to utilize all remaining net operating losses prior to expiration beginning in 2025 for North Carolina and 2032 for Federal; ● Significant improvements in asset quality; ● Resolution of all remaining regulatory orders; and ● A strong capital position enabling future earnings investments. The following table summarizes the amount and expiration dates of the Companys unused net operating losses: As of December 31, 2015 (Dollars in thousands) Amount Expiration Dates Federal $ 30,713 2032 - 2033 North Carolina $ 37,998 2025 - 2028 During the year ended December 31, 2015, the Company recognized a reduction in its net deferred tax assets of approximately $0.4 million as a result of a reduction in the expected North Carolina income tax rate from 5.0% to 4.0%. The Company is subject to examination for federal and state purposes for the tax years 2012 through 2015. As of December 31, 2015 and 2014, the Company does not have any material Unrecognized Tax Positions. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 21. EARNINGS PER SHARE The following is a reconciliation of the numerator and denominator of basic and diluted net income per share of common stock: For the Year Ended December 31, (Dollars in thousands, except per share amounts) 2015 2014 Numerator: Net income $ 23,825 $ 5,943 Denominator: Weighted-average common shares outstanding - basic 6,546,375 6,546,375 Effect of dilutive shares Weighted-average common shares outstanding - diluted 6,546,375 6,546,375 Earnings per share - basic $ 3.64 $ 0.91 Earnings per share - diluted $ 3.64 $ 0.91 Average shares outstanding for the year ended December 31, 2014 is calculated as if the 6,546,375 shares raised in our initial public offering were issued as of the beginning of the year. The average market price used in calculating the assumed number of dilutive shares issued related to stock options for the year ended December 31, 2015 was $16.87. As a result of the average stock price being less than the exercise price of all options in the year ended December 31, 2015, the stock options are not deemed dilutive in calculating diluted earnings per share for the period. As of December 31, 2015, all 157,100 restricted stock units issued were deemed to be anti-dilutive based on the treasury stock method. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 22. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the components of accumulated other comprehensive income (loss) and changes in those components as of and for the years ended December 31: (Dollars in thousands) Available for Sale Securities Held to Maturity Securities Transferred from AFS Deferred Tax Valuation Allowance on AFS Total Balance, December 31, 2012 $ 1,266 $ $ 619 $ 1,885 Change in deferred tax valuation allowance attributable to net unrealized losses on investment securities (3,479 ) (3,479 ) Change in unrealized holding gains/losses on securities available for sale (9,431 ) (9,431 ) Reclassification adjustment for net securities gains included in net income (358 ) (358 ) Transfer of net unrealized loss from available for sale to held to maturity 1,263 (1,263 ) Amortization of unrealized losses on securities transferred to held to maturity 34 34 Income tax expense (benefit) 3,886 (13 ) 3,873 Balance, December 31, 2013 $ (3,374 ) $ (1,242 ) $ (2,860 ) $ (7,476 ) Change in deferred tax valuation allowance attributable to net unrealized losses on investment securities 1,992 1,992 Change in unrealized holding gains/losses on securities available for sale 5,665 5,665 Reclassification adjustment for net securities gains included in net income (657 ) (657 ) Transfer of net unrealized loss from available for sale to held to maturity 74 (74 ) Amortization of unrealized losses on securities transferred to held to maturity 199 199 Income tax expense (benefit) (1,944 ) (48 ) (1,992 ) Balance, December 31, 2014 $ (236 ) $ (1,165 ) $ (868 ) $ (2,269 ) Change in deferred tax valuation allowance attributable to net unrealized losses on investment securities 289 289 Change in unrealized holding gains/losses on securities available for sale (166 ) (166 ) Reclassification adjustment for net securities gains included in net income (403 ) (403 ) Transfer of net unrealized loss from available for sale to held to maturity Amortization of unrealized losses on securities transferred to held to maturity 984 984 Income tax expense (benefit) 211 (382 ) (171 ) Balance, December 31, 2015 $ (594 ) $ (563 ) $ (579 ) $ (1,736 ) The following table shows the line items in the Consolidated Statements of Operations affected by amounts reclassified from accumulated other comprehensive income (loss): Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Gain on sale of investments, net $ 403 $ 657 $ 358 Tax effect Impact, net of tax 403 657 358 Interest income on taxable securities 984 199 34 Tax effect Impact, net of tax 984 199 34 Total reclassifications, net of tax $ 1,387 $ 856 $ 392 |
REGULATORY MATTERS
REGULATORY MATTERS | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |
REGULATORY MATTERS | NOTE 23. REGULATORY MATTERS The Company and the Bank are subject to various regulatory capital requirements administered by their respective federal and state banking regulators. Failure to satisfy minimum capital requirements may result in certain mandatory and additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Companys consolidated financial statements. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier I capital to average assets (as defined). In July 2013, federal bank regulatory agencies issued final rules to revise their risk-based capital requirements and the method for calculating risk-weighted assets to make them consistent with agreements that were reached by the Basel Committee on Banking Supervision and certain provisions of the Dodd-Frank Act (Basel III). On January 1, 2015, the Basel III rules became effective and include transition provisions which implement certain portions of the rules through January 1, 2019. The rule also includes changes in what constitutes regulatory capital, some of which are subject to a transition period. These changes include the phasing-out of certain instruments as qualifying capital. In addition, Tier 2 capital is no longer limited to the amount of Tier 1 capital included in total capital. Mortgage servicing rights, certain deferred tax assets and investments in unconsolidated subsidiaries over designated percentages of common stock are required to be deducted from capital, subject to a transition period. Finally, common equity Tier 1 capital includes accumulated other comprehensive income (which includes all unrealized gains and losses on available for sale debt and equity securities), subject to a transition period and a one-time opt-out election. The Bank elected to opt-out of this provision. As such, accumulated comprehensive income is not included in the Banks Tier 1 capital. The tables below summarize capital ratios and related information in accordance with Basel III as measured at December 31, 2015, and in accordance with the previous rules at December 31, 2014. Following are the required and actual capital amounts and ratios for the Bank: Actual For Capital Adequacy Purposes To Be Well- Capitalized Under Prompt Corrective Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2015: Tier 1 Leverage Capital $ 118,251 12.05% $ 39,270 ≥4% $ 49,087 ≥5% Common Equity Tier 1 Capital $ 118,251 18.07% $ 29,443 ≥4.5% $ 42,529 ≥6.5% Tier 1 Risk-based Capital $ 118,251 18.07% $ 39,257 >6 $ 52,343 ≥8% Total Risk-based Capital $ 126,524 19.34% $ 52,343 ≥8% $ 65,429 ≥10% As of December 31, 2014: Tier 1 Leverage Capital $ 105,556 11.91% $ 35,440 ≥4% $ 44,300 ≥5% Tier 1 Risk-based Capital $ 105,556 19.89% $ 21,231 ≥4% $ 31,847 ≥6% Total Risk-based Capital $ 112,246 21.15% $ 42,462 ≥8% $ 53,078 ≥10% Following are the required and actual capital amounts and ratios for the Company: Actual For Capital Adequacy Purposes (Dollars in thousands) Amount Ratio Amount Ratio As of December 31, 2015: Tier I Leverage Capital $ 136,063 13.85% $ 39,291 ≥4% Common Equity Tier 1 Capital $ 128,007 19.55% $ 29,468 ≥4.5% Tier I Risk-based Capital $ 136,063 20.78% $ 39,291 >6 Total Risk Based Capital $ 144,343 22.04% $ 52,388 ≥8% As of December 31, 2014: Tier I Leverage Capital $ 123,377 13.94% $ 35,398 ≥4% Tier I Risk-based Capital $ 123,377 23.24% $ 21,236 ≥4% Total Risk Based Capital $ 130,067 24.50% $ 42,472 ≥8% |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 24. COMMITMENTS AND CONTINGENCIES To accommodate the financial needs of its customers, the Company makes commitments under various terms to lend funds. These commitments include revolving credit agreements, term loan commitments and short-term borrowing agreements. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customers creditworthiness. The amount of collateral obtained, if it is deemed necessary by the Company upon extension of credit, is based on managements credit evaluation of the counterparty. Collateral held includes first and second mortgages on one-to-four family dwellings, accounts receivable, inventory, and commercial real estate. Certain lines of credit are unsecured. The following summarizes the Companys approximate commitments to extend credit: December 31, 2015 (Dollars in thousands) Lines of credit $ 73,747 Standby letters of credit 749 $ 74,496 The Company had outstanding commitments to originate loans as follows: December 31, 2015 Amount Range of Rates (Dollar in thousands) Fixed $ 17,517 2.990% to 5.500% Variable 22,172 2.740% to 6.250% $ 39,689 The allowance for unfunded commitments was $0.1 million at December 31, 2015 and 2014. The Company is exposed to loss as a result of its obligation for representations and warranties on loans sold to Fannie Mae and maintained a reserve of $0.3 million as of December 31, 2015 and 2014. In the normal course of business, the Company is periodically involved in litigation. In the opinion of the Companys management, none of this litigation is expected to have a material adverse effect on the accompanying consolidated financial statements. |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES | NOTE 25. FAIR VALUE DISCLOSURES We use fair value measurements when recording and disclosing certain financial assets and liabilities. Securities available-for-sale, loan servicing rights and mortgage derivatives are recorded at fair value on a recurring basis. Additionally, from time to time, we may be required to record other assets at fair value on a nonrecurring basis, such as loans held for sale, impaired loans and real estate owned. Fair value is the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants at the measurement date. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities; it is not a forced transaction. In determining fair value, we use various valuation approaches, including market, income and cost approaches. The fair value standard establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing an asset or liability, which is developed, based on market data we have obtained from independent sources. Unobservable inputs reflect our estimate of assumptions that market participants would use in pricing an asset or liability, which are developed based on the best information available in the circumstances. The fair value hierarchy gives the highest priority to unadjusted quoted market prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The fair value hierarchy is broken down into three levels based on the reliability of inputs as follows: ● Level 1: valuation is based upon unadjusted quoted market prices for identical instruments traded in active markets. ● Level 2: valuation is based upon quoted market prices for similar instruments traded in active markets, quoted market prices for identical or similar instruments traded in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by market data. ● Level 3: valuation is derived from other valuation methodologies, including discounted cash flow models and similar techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in determining fair value. A financial instruments level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Fair value estimates are made at a specific point of 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 the Companys entire holdings of a particular financial instrument. Because no active market exists for a significant portion of the Companys financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, current interest rates and prepayment trends, 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 any of these assumptions used in calculating fair value also would affect significantly the estimates. 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 have not been considered in any of these estimates. Following is a description of valuation methodologies used for assets and liabilities recorded at fair value on a recurring basis: Securities We obtain fair values for debt securities from a third-party pricing service, which utilizes several sources for valuing fixed-income securities. The market evaluation sources for debt securities include observable inputs rather than significant unobservable inputs and are classified as Level 2. The service provider utilizes pricing models that vary by asset class and include available trade, bid and other market information. Generally, the methodologies include broker quotes, proprietary models, vast descriptive terms and conditions databases, as well as extensive quality control programs. Included in securities are investments in an exchange traded bond fund and U.S. Treasury bonds which are valued by reference to quoted market prices and considered a Level 1 security. Loan Servicing Rights Loan servicing rights are carried at fair value as determined by a third party valuation firm. The valuation model utilizes a discounted cash flow analysis using discount rates and prepayment speed assumptions used by market participants. The Company classifies loan servicing rights fair value measurements as Level 3. Derivative Instruments Derivative instruments include interest rate lock commitments and forward sale commitments. These instruments are valued based on the change in the value of the underlying loan between the commitment date and the end of the period. The Company classifies these instruments as Level 3. Following is a description of valuation methodologies used for assets and liabilities recorded at fair value on a nonrecurring basis: Loans Held for Sale Loans held for sale are carried at the lower of cost or fair value. The fair value of loans held for sale is based on what secondary markets are currently offering for portfolios with similar characteristics. Loans held for sale carried at fair value are classified as Level 2. Impaired Loans Impaired loans are carried at the lower of recorded investment or fair value. The fair value of collateral dependent impaired loans is estimated using the value of the collateral less selling costs if repayment is expected from liquidation of the collateral. Appraisals may be discounted based on our historical knowledge, changes in market conditions from the time of appraisal or our knowledge of the borrower and the borrowers business. Impaired loans carried at fair value are classified as Level 3. Impaired loans measured using the present value of expected future cash flows are not deemed to be measured at fair value. Real Estate Owned Real estate owned, obtained in partial or total satisfaction of a loan is recorded at the lower of recorded investment in the loan or fair value less cost to sell. Subsequent to foreclosure, these assets are carried at the lower of the amount recorded at acquisition date or fair value less cost to sell. Accordingly, it may be necessary to record nonrecurring fair value adjustments. Fair value, when recorded, is generally based upon appraisals by approved, independent, state certified appraisers. Like impaired loans, appraisals may be discounted based on our historical knowledge, changes in market conditions from the time of appraisal or other information available to us. Real estate owned carried at fair value is classified as Level 3. In addition to financial instruments recorded at fair value in our financial statements, fair value accounting guidance requires disclosure of the fair value of all of an entitys assets and liabilities that are considered financial instruments. The majority of our assets and liabilities are considered financial instruments. Many of these instruments lack an available trading market as characterized by a willing buyer and willing seller engaged in an exchange transaction. Also, it is our general practice and intent to hold our financial instruments to maturity and to not engage in trading or sales activities. For fair value disclosure purposes, we substantially utilize the fair value measurement criteria as required and explained above. In cases where quoted fair values are not available, we use present value methods to determine the fair value of our financial instruments. Following is a description of valuation methodologies used for the disclosure of the fair value of financial instruments not carried at fair value: Cash and Cash Equivalents The carrying amount of such instruments is deemed to be a reasonable estimate of fair value. Loans The fair value of variable rate performing loans is based on carrying values adjusted for credit risk. The fair value of fixed rate performing loans is estimated using discounted cash flow analyses, utilizing interest rates currently being offered for loans with similar terms, adjusted for credit risk. The fair value of nonperforming loans is based on their carrying values less any specific reserve. A prepayment assumption is used to estimate the portion of loans that will be repaid prior to their scheduled maturity. No adjustment has been made for the illiquidity in the market for loans as there is no active market for many of the Companys loans on which to reasonably base this estimate. Bank Owned Life Insurance Fair values approximate net cash surrender values. Other Investments, at cost No ready market exists for this stock and it has no quoted market value. However, redemption of this stock has historically been at par value. Accordingly, the carrying amount is deemed to be a reasonable estimate of fair value. Deposits The fair values disclosed for demand deposits are equal to the amounts payable on demand at the reporting date. The fair value of certificates of deposit are estimated by discounting the amounts payable at the certificate rates using the rates currently offered for deposits of similar remaining maturities. Advances from the FHLB The fair values disclosed for fixed rate long-term borrowings are determined by discounting their contractual cash flows using current interest rates for long-term borrowings of similar remaining maturities. The carrying amounts of variable rate long-term borrowings approximate their fair values. Junior Subordinated Notes The carrying amount approximates fair value because the debt is variable rate tied to LIBOR. Accrued Interest Receivable and Payable Since these financial instruments will typically be received or paid within three months, the carrying amounts of such instruments are deemed to be a reasonable estimate of fair value. Loan Commitments Estimates of the fair value of these off-balance sheet items are not made because of the short-term nature of these arrangements and the credit standing of the counterparties. Assets and Liabilities Recorded at Fair Value on a Recurring Basis Below is a table that presents information about certain assets and liabilities measured at fair value on a recurring basis: We use fair value measurements when recording and disclosing certain financial assets and liabilities. Securities available-for-sale, loan servicing rights and mortgage derivatives are recorded at fair value on a recurring basis. Additionally, from time to time, we may be required to record other assets at fair value on a nonrecurring basis, such as loans held for sale, impaired loans and real estate owned. Fair value is the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants at the measurement date. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities; it is not a forced transaction. In determining fair value, we use various valuation approaches, including market, income and cost approaches. The fair value standard establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing an asset or liability, which is developed, based on market data we have obtained from independent sources. Unobservable inputs reflect our estimate of assumptions that market participants would use in pricing an asset or liability, which are developed based on the best information available in the circumstances. The fair value hierarchy gives the highest priority to unadjusted quoted market prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The fair value hierarchy is broken down into three levels based on the reliability of inputs as follows: ● Level 1: valuation is based upon unadjusted quoted market prices for identical instruments traded in active markets. ● Level 2: valuation is based upon quoted market prices for similar instruments traded in active markets, quoted market prices for identical or similar instruments traded in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by market data. ● Level 3: valuation is derived from other valuation methodologies, including discounted cash flow models and similar techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in determining fair value. A financial instruments level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Fair value estimates are made at a specific point of 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 the Companys entire holdings of a particular financial instrument. Because no active market exists for a significant portion of the Companys financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, current interest rates and prepayment trends, 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 any of these assumptions used in calculating fair value also would affect significantly the estimates. 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 have not been considered in any of these estimates. Following is a description of valuation methodologies used for assets and liabilities recorded at fair value on a recurring basis: Securities We obtain fair values for debt securities from a third-party pricing service, which utilizes several sources for valuing fixed-income securities. The market evaluation sources for debt securities include observable inputs rather than significant unobservable inputs and are classified as Level 2. The service provider utilizes pricing models that vary by asset class and include available trade, bid and other market information. Generally, the methodologies include broker quotes, proprietary models, vast descriptive terms and conditions databases, as well as extensive quality control programs. Included in securities are investments in an exchange traded bond fund and U.S. Treasury bonds which are valued by reference to quoted market prices and considered a Level 1 security. Loan Servicing Rights Loan servicing rights are carried at fair value as determined by a third party valuation firm. The valuation model utilizes a discounted cash flow analysis using discount rates and prepayment speed assumptions used by market participants. The Company classifies loan servicing rights fair value measurements as Level 3. Derivative Instruments Derivative instruments include interest rate lock commitments and forward sale commitments. These instruments are valued based on the change in the value of the underlying loan between the commitment date and the end of the period. The Company classifies these instruments as Level 3. Following is a description of valuation methodologies used for assets and liabilities recorded at fair value on a nonrecurring basis: Loans Held for Sale Loans held for sale are carried at the lower of cost or fair value. The fair value of loans held for sale is based on what secondary markets are currently offering for portfolios with similar characteristics. Loans held for sale carried at fair value are classified as Level 2. Impaired Loans Impaired loans are carried at the lower of recorded investment or fair value. The fair value of collateral dependent impaired loans is estimated using the value of the collateral less selling costs if repayment is expected from liquidation of the collateral. Appraisals may be discounted based on our historical knowledge, changes in market conditions from the time of appraisal or our knowledge of the borrower and the borrowers business. Impaired loans carried at fair value are classified as Level 3. Impaired loans measured using the present value of expected future cash flows are not deemed to be measured at fair value. Real Estate Owned Real estate owned, obtained in partial or total satisfaction of a loan is recorded at the lower of recorded investment in the loan or fair value less cost to sell. Subsequent to foreclosure, these assets are carried at the lower of the amount recorded at acquisition date or fair value less cost to sell. Accordingly, it may be necessary to record nonrecurring fair value adjustments. Fair value, when recorded, is generally based upon appraisals by approved, independent, state certified appraisers. Like impaired loans, appraisals may be discounted based on our historical knowledge, changes in market conditions from the time of appraisal or other information available to us. Real estate owned carried at fair value is classified as Level 3. In addition to financial instruments recorded at fair value in our financial statements, fair value accounting guidance requires disclosure of the fair value of all of an entitys assets and liabilities that are considered financial instruments. The majority of our assets and liabilities are considered financial instruments. Many of these instruments lack an available trading market as characterized by a willing buyer and willing seller engaged in an exchange transaction. Also, it is our general practice and intent to hold our financial instruments to maturity and to not engage in trading or sales activities. For fair value disclosure purposes, we substantially utilize the fair value measurement criteria as required and explained above. In cases where quoted fair values are not available, we use present value methods to determine the fair value of our financial instruments. Following is a description of valuation methodologies used for the disclosure of the fair value of financial instruments not carried at fair value: Cash and Cash Equivalents The carrying amount of such instruments is deemed to be a reasonable estimate of fair value. Loans The fair value of variable rate performing loans is based on carrying values adjusted for credit risk. The fair value of fixed rate performing loans is estimated using discounted cash flow analyses, utilizing interest rates currently being offered for loans with similar terms, adjusted for credit risk. The fair value of nonperforming loans is based on their carrying values less any specific reserve. A prepayment assumption is used to estimate the portion of loans that will be repaid prior to their scheduled maturity. No adjustment has been made for the illiquidity in the market for loans as there is no active market for many of the Companys loans on which to reasonably base this estimate. Bank Owned Life Insurance Fair values approximate net cash surrender values. Other Investments, at cost No ready market exists for this stock and it has no quoted market value. However, redemption of this stock has historically been at par value. Accordingly, the carrying amount is deemed to be a reasonable estimate of fair value. Deposits The fair values disclosed for demand deposits are equal to the amounts payable on demand at the reporting date. The fair value of certificates of deposit are estimated by discounting the amounts payable at the certificate rates using the rates currently offered for deposits of similar remaining maturities. Advances from the FHLB The fair values disclosed for fixed rate long-term borrowings are determined by discounting their contractual cash flows using current interest rates for long-term borrowings of similar remaining maturities. The carrying amounts of variable rate long-term borrowings approximate their fair values. Junior Subordinated Notes The carrying amount approximates fair value because the debt is variable rate tied to LIBOR. Accrued Interest Receivable and Payable Since these financial instruments will typically be received or paid within three months, the carrying amounts of such instruments are deemed to be a reasonable estimate of fair value. Loan Commitments Estimates of the fair value of these off-balance sheet items are not made because of the short-term nature of these arrangements and the credit standing of the counterparties. Assets and Liabilities Recorded at Fair Value on a Recurring Basis Below is a table that presents information about certain assets and liabilities measured at fair value on a recurring basis: December 31, 2015 Level 1 Level 2 Level 3 Total (Dollars in thousands) Trading account assets $ 4,714 $ $ $ 4,714 Securities available for sale: U.S. government agencies 25,720 25,720 Municipal securities 39,858 39,858 Mortgage-backed securities 171,174 171,174 U.S. Treasury securities 1,510 1,510 Mutual funds 600 600 6,824 236,752 243,576 Loan servicing rights 2,344 2,344 Forward sales commitments 16 16 Interest rate lock commitments 30 30 Total assets $ 6,824 $ 236,752 $ 2,390 $ 245,966 December 31, 2014 Level 1 Level 2 Level 3 Total (Dollars in thousands) Securities available for sale: U.S. government agencies $ $ 39,482 $ $ 39,482 Municipal securities 25,558 25,558 Mortgage-backed securities 152,718 152,718 U.S. Treasury securities 1,510 1,510 Mutual funds 591 591 2,101 217,758 219,859 Loan servicing rights 2,187 2,187 Forward sales commitments 9 9 Interest rate lock commitments 52 52 Total assets $ 2,101 $ 217,758 $ 2,248 $ 222,107 There were no liabilities measured at fair value on a recurring basis as of December 31, 2015 and 2014. The following table presents the changes in assets measured at fair value on a recurring basis for which we have utilized Level 3 inputs to determine fair value: Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Balance at beginning of year $ 2,248 $ 1,888 $ 1,908 Loan servicing right activity, included in servicing income, net 544 385 736 Fair value adjustment (387 ) (81 ) (761 ) Mortgage derivative gains (losses) included in Other income (15 ) 56 5 Balance at end of year $ 2,390 $ 2,248 $ 1,888 Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis The table below presents information about certain assets and liabilities measured at fair value on a nonrecurring basis. There were no loans held for sale carried at fair value at either December 31, 2015 or 2014. December 31, 2015 Level 1 Level 2 Level 3 Total (Dollars in thousands) Collateral dependent impaired loans: One-to four family residential $ $ $ 4,163 $ 4,163 Commercial real estate 7,226 7,226 Home equity loans and lines of credit 213 213 Other construction and land 658 658 Real estate owned: One-to four family residential 1,384 1,384 Commercial real estate 1,123 1,123 Other construction and land 2,862 2,862 Total assets $ $ $ 17,629 $ 17,629 December 31, 2014 Level 1 Level 2 Level 3 Total (Dollars in thousands) Collateral dependent impaired loans: One-to four family residential $ $ $ 6,407 $ 6,407 Commercial real estate 14,551 14,551 Home equity loans and lines of credit 1,456 1,456 Other construction and land 2,227 2,227 Real estate owned: One-to four family residential 220 220 Commercial real estate 774 774 Other construction and land 3,431 3,431 Total assets $ $ $ 29,066 $ 29,066 There were no liabilities measured at fair value on a nonrecurring basis as of December 31, 2015 or 2014. Impaired loans totaling $5.2 million at December 31, 2015 and $9.0 million at December 31, 2014, were measured using the present value of expected future cash flows. These impaired loans were not deemed to be measured at fair value on a nonrecurring basis. The following table provides information describing the unobservable inputs used in Level 3 fair value measurements at December 31, 2015. Valuation Technique Unobservable Input General Range Impaired loans Discounted Appraisals Collateral discounts and estimated selling cost 0 30% Real estate owned Discounted Appraisals Collateral discounts and estimated selling cost 0 30% Loan servicing rights Discounted Cash Flows Prepayment speed 7 35% Discount rate 10 - 16% Forward sales commitments and interest rate lock commitments Change in market price of underlying loan Value of underlying loan 101 - 108% The approximate carrying and estimated fair value of financial instruments are summarized below: Fair Value Measurements at December 31, 2015 Carrying (Dollars in thousands) Amount Total Level 1 Level 2 Level 3 Assets: Cash and equivalents $ 40,650 $ 40,650 $ 40,650 $ $ Trading securities 4,714 4,714 4,714 Securities available for sale 238,862 238,862 2,110 236,752 Securities held to maturity 41,164 41,812 995 40,817 Loans held for sale 8,348 8,952 8,952 Loans receivable, net 624,072 620,516 620,516 Other investments, at cost 8,834 8,834 8,834 Interest receivable 3,554 3,554 3,554 Bank owned life insurance 20,858 20,858 20,858 Loan servicing rights 2,344 2,344 2,344 Forward sales commitments 16 16 16 Interest rate lock commitments 30 30 30 Liabilities: Demand deposits $ 440,475 440,475 $ $ 440,475 $ Time deposits 276,142 275,403 275,403 Federal Home Loan Bank advances 153,500 153,441 153,441 Junior subordinated debentures 14,433 14,433 14,433 Accrued interest payable 213 213 213 Fair Value Measurements at December 31, 2014 Carrying (Dollars in thousands) Amount Total Level 1 Level 2 Level 3 Assets: Cash and equivalents $ 58,982 $ 58,982 $ 58,982 $ $ Securities available for sale 219,859 219,859 2,101 217,758 Securities held to maturity 29,285 30,890 30,890 Loans held for sale 10,761 11,501 11,501 Loans receivable, net 529,407 546,450 546,450 Other investments, at cost 4,908 4,908 4,908 Interest receivable 2,925 2,925 2,925 Bank owned life insurance 20,417 20,417 20,417 Loan servicing rights 2,187 2,187 2,187 Forward sales commitments 9 9 9 Interest rate lock commitments 52 52 52 Liabilities: Demand deposits $ 384,898 $ 384,898 $ $ 384,898 $ Time deposits 318,219 321,491 321,491 Federal Home Loan Bank advances 60,000 62,108 62,108 Junior subordinated debentures 14,433 14,433 14,433 Accrued interest payable 323 323 323 |
PARENT COMPANY FINANCIAL INFORM
PARENT COMPANY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
PARENT COMPANY FINANCIAL INFORMATION | NOTE 26. PARENT COMPANY FINANCIAL INFORMATION Following is condensed financial information of Entegra Financial Corp. (parent company only): Condensed Balance Sheets December 31, 2015 2014 (Dollars in thousands) Assets Cash $ 17,545 $ 17,652 Equity investment in subsidiary 128,090 103,498 Equity investment in trust 433 433 Other assets 188 169 Total assets $ 146,256 $ 121,752 Liabilities and Shareholders Equity Junior Subordinated Debentures $ 14,433 $ 14,433 Other liabilities 354 Shareholders Equity 131,469 107,319 Total liabilities and shareholders equity $ 146,256 $ 121,752 Condensed Statements of Operations Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Income Interest income $ 190 $ 78 $ Dividends from subsidiary 114 304 78 Expenses Interest 458 509 490 Other 259 29 38 717 538 528 Loss before income taxes and equity in undistributed income of subsidiary (413 ) (460 ) (528 ) Income tax benefit allocated from consolidated income tax return 180 180 172 Loss before equity in undistributed income (loss) of subsidiary (233 ) (280 ) (356 ) Equity in undistributed income (loss) of 24,058 6,223 (59 ) Net income (loss) $ 23,825 $ 5,943 $ (415 ) Condensed Statements of Cash Flows Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Operating activities: Net income (loss) $ 23,825 $ 5,943 $ (415 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Equity in undistributed earnings of subsdiary (24,058 ) (6,223 ) 59 (Increase) decrease in other assets (19 ) (46 ) 6 Increase (decrease) in other liablilities 75 (1,567 ) 484 Net cash provided by (used in) operating activities $ (177 ) $ (1,893 ) $ 134 Investing activities: Investment in subsidiary $ $ (44,581 ) $ Net cash used in investing activities $ $ (44,581 ) $ Financing activities: Proceeds from sale of common stock $ $ 63,651 $ Proceeds from bank subsidiary for share-based compensation 70 Net cash provided by (used in) financing activities $ 70 $ 63,651 $ Increase in cash and cash equivalents (107 ) 17,177 134 Cash and cash equivalents, beginning of year 17,652 475 341 Cash and cash equivalents, end of year $ 17,545 $ 17,652 $ 475 |
SUMMARY OF SIGNIFICANT ACCOUN34
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Summary Of Significant Accounting Policies Policies | |
Estimates | Estimates Material estimates that are particularly susceptible to significant change, in the near term, relate to the determination of the allowance for loan losses and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. In connection with the determination of the allowance for loan losses and the valuation of foreclosed real estate, management obtains independent appraisals for significant properties. |
Principles of Consolidation | Principles of Consolidation |
Reclassification | Reclassification |
Business Combinations | Business Combinations |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Trading Assets | Trading Assets |
Securities Available for Sale and Held to Maturity | Securities Available for Sale and Held to Maturity Held to maturity securities represent those securities that we have the positive intent and ability to hold to maturity and are carried at amortized cost. Realized gains and losses on the sale of securities and other-than-temporary impairment (OTTI) charges are recorded as a component of noninterest income in the Consolidated Statements of Operations. Realized gains and losses on the sale of securities are determined using the specific-identification method. Bond premiums are amortized to the call date and bond discounts are accreted to the maturity date, both on a level yield basis. We perform a quarterly review of our securities to identify those that may indicate OTTI. Our policy for OTTI within the debt securities portfolio is based upon a number of factors, including, but not limited to, the length of time and extent to which the estimated fair value has been less than cost, the financial condition of the underlying issuer and the ability of the issuer to meet contractual obligations. Other factors include the likelihood of the securitys ability to recover any decline in its estimated fair value and whether management intends to sell the security, or if it is more likely than not that management will be required to sell the investment security prior to the securitys recovery. The Company reclassified certain of its securities from available for sale to held to maturity during the years ended December 31, 2014 and 2013 in an effort to minimize the impact of future interest rate changes on Accumulated Other Comprehensive Income (Loss). The difference between the book values and fair values at the date of the transfer will continue to be reported in a separate component of Accumulated Other Comprehensive Income (Loss), and will be amortized into income over the remaining life of the securities as an adjustment of yield in a manner consistent with the amortization of a premium. Concurrently, the revised book values of the transferred securities (represented by the market value on the date of transfer) are being amortized back to their par values over the remaining life of the security as an adjustment of yield in a manner consistent with the amortization of a discount. |
Loans Held for Sale | Loans Held for Sale We generally sell the guaranteed portion of SBA loans in the secondary market and retain the unguaranteed portion in our portfolio. Upon sale of the guaranteed portion of an SBA loan, we recognize a portion of the gain on sale into income and defer a portion of the gain related to the relative fair value of the unguaranteed loan balance we retain. The deferred gain is amortized into income over the remaining life of the loan. |
Loans Receivable | Loans Receivable Generally, consumer loans are charged down to their estimated collateral value after reaching 90 days past due. The number of days past due is determined by the amount of time from when the payment was due based on contractual terms. Commercial loans are charged off as management becomes aware of facts and circumstances that raise doubt as to the collectability of all or a portion of the principal and when we believe a confirmed loss exists. The Company began originating and selling the guaranteed portion of small business administration (SBA) loans into the secondary market during the year ended December 31, 2013. When the Company retains the right to service a sold SBA loan, the previous carrying amount is allocated between the guaranteed portion of the loan sold, the unguaranteed portion of the loan retained and the retained SBA servicing right based on their relative fair values on the date of transfer. |
Nonaccrual Loans | Nonaccrual Loans For loans modified in a troubled debt restructuring, the loan is generally placed on non-accrual until there is a period of satisfactory payment performance by the borrower (either immediately before or after the restructuring), generally defined as six months, and the ultimate collectability of all amounts contractually due is not in doubt. |
Troubled Debt Restructurings (TDR) | Troubled Debt Restructurings (TDR) All TDRs are considered to be impaired loans and will be reported as an impaired loan for the remaining life of the loan, unless the restructuring agreement specifies an interest rate equal to or greater than the rate that would be accepted at the time of the restructuring for a new loan with comparable risk and it is fully expected that the original principal and interest will be collected according to the restructured agreement. We may also remove a loan from TDR and impaired status if the TDR is subsequently restructured and at the time of the subsequent restructuring the borrower is not experiencing financial difficulties and, under the terms of the subsequent restructuring agreement, no concession has been granted to the borrower. |
Allowance for Loan Losses (ALL) | Allowance for Loan Losses (ALL) A loan is considered impaired when it is probable that we will be unable to collect all principal and interest payments due according to the original contractual terms of the loan agreement. We individually evaluate all loans classified as substandard or nonaccrual greater than $350,000 for impairment. If the impaired loan is considered collateral dependent, a charge-off is taken based upon the appraised value of the property (less an estimate of selling costs if foreclosure is anticipated). If the impaired loan is not collateral dependent, a specific reserve is established based upon an estimate of the future discounted cash flows after consideration of modifications and the likelihood of future default and prepayment. The allowance for non-impaired loans consists of a base historical loss reserve and a qualitative reserve. Prior to the first quarter of 2015, we more heavily weighted the most recent four quarters than the least recent four quarters. Beginning in the first quarter of 2015, we no longer weight any quarters to calculate our average loss rates. This change in weighting did not have a material impact on our allowance for loan losses methodology. The loss rates for the base loss reserve are segmented into 13 loan categories and contain loss rates ranging from approximately 0.5% to 11%. The qualitative reserve adjusts the average loss rates utilized in the base loss reserve for trends in the following internal and external factors: ● Non-accrual and classified loans ● Collateral values ● Loan concentrations and loan growth ● Economic conditions including unemployment rates, building permits, and a regional economic index. Qualitative reserve adjustment factors are decreased for favorable trends and increased for unfavorable trends. These factors are subject to further adjustment as economic and other conditions change. |
Fixed Assets | Fixed Assets |
Real Estate Owned | Real Estate Owned Subsequent to foreclosure, real estate owned is recorded at the lower of carrying amount or fair value less estimated costs to sell. Valuations are periodically performed by management, but not less than annually, and an additional allowance for losses is established by a charge to Net Cost of Operation of Real Estate Owned in the Consolidated Statements of Operations, if necessary. |
Other Investments, at cost | Other Investments, at cost FHLB stock is carried at cost and evaluated for impairment based on the ultimate recoverability of the par value. The Company has evaluated its FHLB stock and concluded that it is not impaired because the FHLB Atlanta is currently paying cash dividends and redeeming stock at par. The FHLB requires members to purchase and hold a specified level of stock based upon on the members asset value, level of borrowings and participation in other programs offered. Stock in the FHLB is non-marketable and is redeemable at the discretion of the FHLB. Members do not purchase stock in the FHLB for the same reasons that traditional equity investors acquire stock in an investor-owned enterprise. Rather, members purchase stock to obtain access to the low-cost products and services offered by the FHLB. Unlike equity securities of traditional for-profit enterprises, the stock of the FHLB does not provide its holders with an opportunity for capital appreciation because, by regulation, FHLB stock can only be purchased, redeemed and transferred at par value. Both cash and stock dividends are reported as Other interest income in the Consolidated Statements of Operations. |
Bank Owned Life Insurance (BOLI) | Bank Owned Life Insurance (BOLI) |
Real Estate Held for Investment | Real Estate Held for Investment |
Loan Servicing Rights (LSR) | Loan Servicing Rights (LSR) Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal (generally 25 basis points for residential mortgage loans and 100 basis points for SBA loans) or a fixed amount per loan, and are recorded as income when earned. Changes in fair value of LSRs are netted against loan servicing fee income and reported as Servicing income (expense), net in the Consolidated Statements of Operations. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The goodwill impairment analysis is a two-step test. The first, used to identify potential impairment, involves comparing each reporting units estimated fair value to its carrying value, including goodwill. If the estimated fair value of a reporting unit exceeds its carrying value, goodwill is considered not to be impaired. If the carrying value exceeds estimated fair value, there is an indication of potential impairment and the second step is performed to measure the amount of impairment. Authoritative guidance gives entities the option of first performing a qualitative assessment to test goodwill for impairment on a reporting-unit basis. If, after performing the qualitative assessment, an entity concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the entity would perform the two-step goodwill impairment test. However, if, after applying the qualitative assessment, the entity concludes that it is not more likely than not that the fair value is less than the carrying amount, the two-step goodwill impairment test is not required. Core deposit intangibles are amortized over the estimated useful lives of the deposit accounts acquired (generally seven years on a straight line basis). |
Derivative Financial Instruments - Interest Rate Lock Commitments and Forward Sale Contracts | Derivative Financial Instruments Interest Rate Lock Commitments and Forward Sale Contracts |
Advertising Expense | Advertising Expense |
Income Taxes | Income Taxes Deferred income tax assets and liabilities are determined using the asset and liability method and are reported net in the Consolidated Balance Sheets. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax basis of assets and liabilities and recognizes enacted changes in tax rate and laws. When deferred tax assets are recognized, they are subject to a valuation allowance based on managements judgment as to whether realization is more likely than not. In determining the need for a valuation allowance, the Company considers the following sources of taxable income: ● Future reversals of existing taxable temporary differences ● Future taxable income exclusive of reversing temporary differences and carry forwards ● Taxable income in prior carryback years ● Tax planning strategies that would, if necessary, be implemented As a result of the analysis above, the Company concluded that a valuation allowance was not necessary as of December 31, 2015. The Company maintained a full valuation allowance as of December 31, 2014 except for consideration of certain tax planning strategies. Accrued taxes represent the net estimated amount due to taxing jurisdictions and are reported in other assets or other liabilities, as appropriate, in the Consolidated Balance Sheets. We evaluate and assess the relative risks and appropriate tax treatment of transactions and filing positions after considering statutes, regulations, judicial precedent and other information and maintain tax accruals consistent with the evaluation of these relative risks and merits. Changes to the estimate of accrued taxes occur periodically due to changes in tax rates, interpretations of tax laws, the status of examinations being conducted by taxing authorities and changes to statutory, judicial and regulatory guidance. These changes, when they occur, can affect deferred taxes and accrued taxes, as well as the current periods income tax expense and can be significant to our operating results. Tax positions are recognized as a benefit only if it is more likely than not that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50 percent likely of being realized on examination. For tax positions not meeting the more likely than not test, no tax benefit is recorded. |
Allowance for Unfunded Commitments | Allowance for Unfunded Commitments |
Junior Subordinated Notes | Junior Subordinated Notes |
Segments | Segments |
Subsequent Events | Subsequent Events |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In January 2014, the Financial Accounting Standards Board (FASB) amended the Receivables topic of the Accounting Standards Codification (ASC). The amendments are intended to resolve diversity in practice with respect to when a creditor should reclassify a collateralized consumer mortgage loan to REO. In addition, the amendments require a creditor to reclassify a collateralized consumer mortgage loan to REO upon obtaining legal title to the real estate collateral, or the borrower voluntarily conveying its interest in the real estate collateral to the creditor to satisfy the loan through a deed in lieu of foreclosure or similar legal agreement. As an emerging growth company, the amendments are effective for the Company for annual periods beginning after December 15, 2014, and interim periods within annual periods beginning after December 15, 2015. For non-emerging growth companies, the amendments are effective for annual periods, and interim periods within those annual periods beginning after December 15, 2014. Early implementation of the guidance is permitted. In implementing this guidance, assets that are reclassified from real estate to loans are measured at the carrying value of the real estate at the date of adoption. Assets reclassified from loans to real estate are measured at the lower of the net amount of the loan receivable or the fair value of the real estate less costs to sell at the date of adoption. The Company has adopted the amendments and the related disclosures are included in Note 6. The amendments did not have a material effect on the Companys financial statements. In January 2015, the FASB issued guidance to eliminate from GAAP the concept of an extraordinary item, which is an event or transaction that is both (1) unusual in nature and (2) infrequently occurring. Under the new guidance, an entity will no longer (1) segregate an extraordinary item from the results of ordinary operations; (2) separately present an extraordinary item on its income statement, net of tax, after income from continuing operations; or (3) disclose income taxes and earnings-per-share data applicable to an extraordinary item. The amendments will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company will apply the guidance prospectively. The Company does not expect these amendments to have a material effect on its financial statements. In February 2015, the FASB issued guidance which amends the consolidation requirements and significantly changes the consolidation analysis required under GAAP. Although the amendments are expected to result in the deconsolidation of many entities, the Company will need to reevaluate all its previous consolidation conclusions. As an emerging growth company, the amendments will be effective for the Company for fiscal years beginning after December 15, 2015, and interim periods beginning after December 15, 2017. For non-emerging growth companies, the amendments will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption of the guidance is permitted (including during an interim period), provided that the guidance is applied as of the beginning of the annual period containing the adoption date. The Company does not expect these amendments to have a material effect on its financial statements. In April 2015, the FASB issued guidance that will require debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. This update affects disclosures related to debt issuance costs but does not affect existing recognition and measurement guidance for these items. As an emerging growth company, the guidance will be effective for the Company for fiscal years beginning after December 15, 2015, and interim periods beginning after December 15, 2016. For non-emerging growth companies, the guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption of the guidance is permitted. The Company does not expect these amendments to have a material effect on its financial statements. In August 2015, the FASB deferred the effective date of ASU 2014-09, Revenue from Contracts with Customers. As a result of the deferral, the guidance in ASU 2014-09 will be effective for the Company for annual periods beginning after December 15, 2018, and interim periods within annual reporting periods beginning after December 15, 2019. For non-emerging growth companies, the guidance will be effective for reporting periods beginning after December 15, 2017. The Company will apply the guidance using a full retrospective approach. The Company does not expect these amendments to have a material effect on its financial statements. In August 2015, the FASB issued amendments to the Interest topic of the ASC to clarify the Securities and Exchange Commission (SEC) staffs position on presenting and measuring debt issuance costs incurred in connection with line-of-credit arrangements. The amendments were effective upon issuance. The Company does not expect these amendments to have a material effect on its financial statements. In January 2016, the FASB amended the Financial Instruments topic of the ASC to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments will be effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. For non-emerging growth companies, the guidance will be effective for reporting periods beginning after December 15, 2017, including interim periods within those fiscal years. The Company will apply the guidance by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values will be applied prospectively to equity investments that exist as of the date of adoption of the amendments. The Company does not expect these amendments to have a material effect on its financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) which requires the recognition of a right of use asset and related lease liability by lessees for leases classified as operating leases under current GAAP. Topic 842, which replaces the current guidance under Topic 840, retains a distinction between finance leases and operating leases. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee also will not significantly change from current GAAP. For leases with a term of twelve months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize right of use assets and lease liabilities. The guidance will be effective for the Company for reporting periods beginning after December 15, 2019, including interim periods within those fiscal years with an early adoption permitted. For non-emerging growth companies, the guidance will be effective for reporting periods beginning after December 15, 2018, including interim periods within those fiscal years. The Company must apply a modified retrospective transition approach for the applicable 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. Management is currently evaluating the impact of Topic 842 on the Companys consolidated financial statements. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Companys financial position, results of operations or cash flows. |
STOCK CONVERSION AND CHANGE I35
STOCK CONVERSION AND CHANGE IN CORPORATE FORM (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stock Conversion And Change In Corporate Form Tables | |
Proceeds From Common Stock Offering Summary | Common Stock Offering Summary (Dollars in thousands) Gross proceeds $ 65,464 Issuance costs (1,813 ) Net proceeds $ 63,651 Contributed to the Bank $ 44,581 Retained by the Company 19,070 $ 63,651 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Schedule of Assets and Liabilities assumed at the date of acquisition and their initial fair values | (Dollars in thousands) As Recorded by ASB Fair Value Adjustments As Recorded by the Company Assets Cash and cash equivalents $ 33,076 $ $ 33,076 Loans 4,717 (72 ) (a) 4,645 Premises and equipment 2,080 2,080 Core deposit intangible 590 (b) 590 Other assets 16 16 Total assets $ 39,889 $ 518 $ 40,407 Liabilities Deposits: Noninterest-bearing demand $ 22,084 $ 22,084 Interest-bearing demand 15 15 Money market 2,556 2,556 Savings 7,242 7,242 Time deposits 7,967 31 (c) 7,998 Total deposits 39,864 31 39,895 Other liabilities 25 25 Total liabilities 39,889 31 39,920 Net identifiable assets acquired over liabilities assumed 487 487 Goodwill 711 711 Net assets acquired over liabilities assumed $ $ 1,198 $ 1,198 Consideration: Cash paid as deposit premium $ 1,198 Fair value of total consideration transferred $ 1,198 (a) - Adjustment reflects the fair value adjustments based on the Companys evaluation of the acquired loan portfolio. (b) - Adjustment reflects the recording of the core deposit intangible on the acquired core deposit accounts. This amount was recorded by the Company as an identifiable intangible asset and will be amortized as an expense on a straight-line basis over the average life of the core deposit base, which is estimated to be 7 years. (c) - Adjustment reflects the fair value adjustment of time deposits. |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investment Securities Tables | |
Schedule of holdings of our trading account | December 31, 2015 2014 (Dollars in thousands) Cash $ 4,714 $ |
Schedule of investment securities available for sale | December 31, 2015 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. government agencies $ 25,633 $ 123 $ (36 ) $ 25,720 Municipal securities 39,751 311 (204 ) 39,858 Mortgage-backed securities 172,327 276 (1,429 ) 171,174 U.S. Treasury securities 1,500 10 1,510 Mutual funds 602 (2 ) 600 $ 239,813 $ 720 $ (1,671 ) $ 238,862 December 31, 2014 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. government agencies $ 39,540 $ 65 $ (123 ) $ 39,482 Municipal securities 25,483 225 (150 ) 25,558 Mortgage-backed securities 153,128 643 (1,053 ) 152,718 U.S. Treasury securities 1,500 10 1,510 Mutual funds 590 1 591 $ 220,241 $ 944 $ (1,326 ) $ 219,859 |
Schedule of investment securities held to maturity | December 31, 2015 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. government agencies $ 15,877 $ 645 $ (23 ) $ 16,499 Municipal securities 12,428 199 (93 ) 12,534 Mortgage-backed securities 4,834 4 (62 ) 4,776 U.S. Treasury securities 1,002 (7 ) 995 Corporate debt securities 7,023 25 (40 ) 7,008 $ 41,164 $ 873 $ (225 ) $ 41,812 December 31, 2014 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. government agencies $ 23,193 $ 1,420 $ (5 ) $ 24,608 Municipal securities 4,392 190 4,582 Trust preferred securities 1,000 1,000 Corporate debt securities 700 700 $ 29,285 $ 1,610 $ (5 ) $ 30,890 |
Transfer of Investment Securities from Available for Sale to Held to Maturity | At Date of Transfer During the Year Ended December 31, 2014 (Dollars in thousands) Book value $ 4,473 Market value 4,399 Unrealized loss $ 74 |
Unrealized Losses Related to Held to Maturity Securities Previously Recognized in Other Comprehensive Income | Year Ended December 31, (Dollars in thousands) 2015 2014 2013 Beginning unrealized loss related to HTM securities previously recognized in AOCI $ 1,887 $ 2,012 $ Additions for transfers to HTM 74 2,046 Amortization of unrealized losses on HTM securities previously recognized in AOCI (984 ) (199 ) (34 ) Ending unrealized loss related to HTM securities previously recognized in AOCI $ 903 $ 1,887 $ 2,012 |
Securities Gross Unrealized Losses Position | Information pertaining to securities with gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: December 31, 2015 Less Than 12 Months More Than 12 Months Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (Dollars in thousands) Held to Maturity: U.S. government agencies $ 5,705 $ 23 $ $ $ 5,705 $ 23 Municipal securities 4,365 93 4,365 93 Mortgage-backed securities 2,693 62 2,693 62 U.S. Treasury securities 995 7 995 7 Corporate debt securities 4,911 40 4,911 40 $ 18,669 $ 225 $ $ $ 18,669 $ 225 Available for Sale: U.S. government agencies $ 13,317 $ 36 $ $ $ 13,317 $ 36 Municipal securities 18,769 176 947 28 19,716 204 Mortgage-backed securities 102,419 926 20,905 503 123,324 1,429 Mutual funds 600 2 600 2 $ 135,105 $ 1,140 $ 21,852 $ 531 $ 156,957 $ 1,671 December 31, 2014 Less Than 12 Months More Than 12 Months Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (Dollars in thousands) Held to Maturity: U.S. government agencies $ 1,995 $ 5 $ $ $ 1,995 $ 5 $ 1,995 $ 5 $ $ $ 1,995 $ 5 Available for Sale: U.S. government agencies $ 14,472 $ 15 $ 7,893 $ 108 $ 22,365 $ 123 Municipal securities 4,306 49 8,409 101 12,715 150 Mortgage-backed securities 38,563 217 46,204 836 84,767 1,053 $ 57,341 $ 281 $ 62,506 $ 1,045 $ 119,847 $ 1,326 Information pertaining to the number of securities with unrealized losses is detailed in the table below. Management of the Company believes all unrealized losses as of December 31, 2015 and 2014 represent temporary impairment. The unrealized losses have resulted from temporary changes in the interest rate market and not as a result of credit deterioration. We do not intend to sell and it is not likely that we will be required to sell any of the securities referenced in the table below before recovery of their amortized cost. December 31, 2015 Less Than 12 Months More Than 12 Months Total U.S. government agencies 13 13 Municipal securities 51 2 53 Mortgage-backed securities 71 15 86 U.S. Treasury securities 1 1 Corporate debt securities 9 9 Mutual funds 1 1 146 17 163 December 31, 2014 Less Than 12 Months More Than 12 Months Total U.S. government agencies 11 3 14 Municipal securities 9 19 28 Mortgage-backed securities 26 27 53 46 49 95 |
Proceeds from Sales of Securities Available For Sale and Their Corresponding Gross Realized Gains and Losses | For the Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Gross proceeds $ 39,022 $ 19,170 $ 36,404 Gross realized gains 423 680 522 Gross realized losses 20 164 |
Amortized Cost and Estimated Fair Value of Securities by Contractual Maturity | Available for Sale Amortized Cost Fair Value (Dollars in thousands) Less than 1 year $ 1,103 $ 1,100 Over 1 year through 5 years 27,088 27,172 After 5 years through 10 years 15,695 15,701 Over 10 years 23,600 23,715 67,486 67,688 Mortgage-backed securities 172,327 171,174 Total $ 239,813 $ 238,862 Held to Maturity Amortized Cost Fair Value (Dollars in thousands) Over 1 year through 5 years $ 1,002 $ 995 After 5 years through 10 years 13,218 13,189 Over 10 years 22,110 22,852 36,330 37,036 Mortgage-backed securities 4,834 4,776 Total $ 41,164 $ 41,812 |
LOANS RECEIVABLE (Tables)
LOANS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Loans Receivable Tables | |
Loan Receivable | December 31, 2015 2014 (Dollars in thousands) Real estate mortgage loans: One-to four-family residential $ 248,633 $ 227,209 Commercial real estate 214,413 179,435 Home equity loans and lines of credit 53,446 56,561 Residential construction 7,848 7,823 Other construction and land 57,316 50,298 Total real estate loans 581,656 521,326 Commercial and industrial 41,046 19,135 Consumer 3,639 3,200 Total commercial and consumer 44,685 22,335 Loans receivable, gross 626,341 543,661 Less: Net deferred loan fees (1,388 ) (1,695 ) Unamortized premium 557 Unamortized discount (1,438 ) (1,487 ) Loans receivable, net $ 624,072 $ 540,479 |
Activity Related to Discount on Purchased Loans | For the Year Ended December 31, (Dollars in thousands) 2015 2014 2013 Discount on purchased loans, beginning of period $ 1,487 $ $ Additional discount for new purchases 557 2,607 Accretion (311 ) (365 ) Discount applied to charge-offs (295 ) Interest income recognized for repayments and restructurings (755 ) Discount on purchased loans, end of period $ 1,438 $ 1,487 $ |
Aggregate amount of extensions of credit to executive officers and directors | December 31, 2015 2014 Beginning of year $ 9,307 $ 9,827 New loans 30 1,695 Repayments (407 ) (2,215 ) End of year $ 8,930 $ 9,307 |
ALLOWANCE FOR LOAN LOSSES (Tabl
ALLOWANCE FOR LOAN LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Allowance For Loan Losses Tables | |
Changes in Allowance for Loan Losses | Year Ended December 31, 2015 One-to four Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) Beginning balance $ 2,983 $ 2,717 $ 1,333 $ 510 $ 2,936 $ 308 $ 285 $ 11,072 Provision (251 ) 388 200 (235 ) (1,741 ) 272 (133 ) $ (1,500 ) Charge-offs (536 ) (52 ) (540 ) (137 ) (9 ) (48 ) $ (1,322 ) Recoveries 259 168 104 3 342 32 303 1,211 Ending balance $ 2,455 $ 3,221 $ 1,097 $ 278 $ 1,400 $ 603 $ 407 $ 9,461 Year Ended December 31, 2014 One-to four Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) Beginning balance $ 3,693 $ 4,360 $ 1,580 $ 501 $ 3,516 $ 336 $ 265 $ 14,251 Provision (201 ) 408 310 9 (232 ) (58 ) (203 ) 33 Charge-offs (702 ) (2,415 ) (598 ) (566 ) (133 ) (140 ) (4,554 ) Recoveries 193 364 41 218 163 363 1,342 Ending balance $ 2,983 $ 2,717 $ 1,333 $ 510 $ 2,936 $ 308 $ 285 $ 11,072 Year Ended December 31, 2013 One-to four Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) Beginning balance $ 4,620 $ 2,973 $ 2,002 $ 429 $ 4,059 $ 379 $ 412 $ 14,874 Provision (77 ) 3,471 316 154 430 (57 ) 121 4,358 Charge-offs (1,283 ) (2,209 ) (760 ) (193 ) (1,512 ) (17 ) (675 ) (6,649 ) Recoveries 433 125 22 111 539 31 407 1,668 Ending balance $ 3,693 $ 4,360 $ 1,580 $ 501 $ 3,516 $ 336 $ 265 $ 14,251 |
Investment in Loans by Portfolio Segment | December 31, 2015 One-to four Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) Allowance for loan losses Individually evaluated for impairment $ 344 $ 61 $ 6 $ $ 61 $ 38 $ $ 510 Collectively evaluated for impairment 2,111 3,160 1,091 278 1,339 565 407 8,951 $ 2,455 $ 3,221 $ 1,097 $ 278 $ 1,400 $ 603 $ 407 $ 9,461 Loans Receivable Individually evaluated for impairment $ 6,315 $ 9,013 $ 313 $ $ 1,509 $ 318 $ $ 17,468 Collectively evaluated for impairment 242,318 205,400 53,133 7,848 55,807 40,728 3,639 608,873 $ 248,633 $ 214,413 $ 53,446 $ 7,848 $ 57,316 $ 41,046 $ 3,639 $ 626,341 December 31, 2014 One-to four Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) Allowance for loan losses Individually evaluated for impairment $ 719 $ 235 $ 14 $ $ 705 $ 3 $ $ 1,676 Collectively evaluated for impairment 2,264 2,482 1,319 510 2,231 305 285 9,396 $ 2,983 $ 2,717 $ 1,333 $ 510 $ 2,936 $ 308 $ 285 $ 11,072 Loans Receivable Individually evaluated for impairment $ 9,912 $ 17,828 $ 1,686 $ $ 3,911 $ 328 $ $ 33,665 Collectively evaluated for impairment 217,297 161,607 54,875 7,823 46,387 18,807 3,200 509,996 $ 227,209 $ 179,435 $ 56,561 $ 7,823 $ 50,298 $ 19,135 $ 3,200 $ 543,661 |
Credit Risk Profile by Rating | December 31, 2015 Loan Grade One-to Four- Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) 1 $ $ 65 $ $ $ $ 10,336 $ $ 10,401 2 4,446 99 4,545 3 18,518 11,396 1,358 525 1,479 1,734 35,010 4 46,942 74,542 1,961 2,036 13,850 18,586 1 157,918 5 33,886 97,469 6,648 1,347 22,864 9,274 592 172,080 6 2,903 13,171 1,106 1,718 297 19,195 7 3,335 13,106 579 458 17,478 $ 105,584 $ 214,195 $ 9,967 $ 5,014 $ 40,490 $ 40,784 $ 593 $ 416,627 Ungraded Loan Exposure: Performing $ 141,771 $ 218 $ 43,158 $ 2,834 $ 16,707 $ 262 $ 3,046 $ 207,996 Nonperforming 1,278 321 119 1,718 Subtotal $ 143,049 $ 218 $ 43,479 $ 2,834 $ 16,826 $ 262 $ 3,046 $ 209,714 Total $ 248,633 $ 214,413 $ 53,446 $ 7,848 $ 57,316 $ 41,046 $ 3,639 $ 626,341 December 31, 2014 Loan Grade One-to Four- Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) 1 $ $ 68 $ $ $ $ 2,511 $ 20 $ 2,599 2 100 100 3 63,065 14,356 5,978 690 5,154 483 454 90,180 4 58,948 37,349 10,424 2,327 9,027 2,917 419 121,411 5 44,445 90,397 10,486 3,048 21,024 6,399 179 175,978 6 5,714 21,232 882 574 2,451 429 1 31,283 7 7,400 14,139 1,568 5,404 555 29,066 $ 179,572 $ 177,541 $ 29,338 $ 6,639 $ 43,060 $ 13,394 $ 1,073 $ 450,617 Ungraded Loan Exposure: Performing $ 46,247 $ 1,736 $ 26,864 $ 1,119 $ 7,073 $ 5,741 $ 2,125 $ 90,905 Nonperforming 1,390 158 359 65 165 2 2,139 Subtotal $ 47,637 $ 1,894 $ 27,223 $ 1,184 $ 7,238 $ 5,741 $ 2,127 $ 93,044 Total $ 227,209 $ 179,435 $ 56,561 $ 7,823 $ 50,298 $ 19,135 $ 3,200 $ 543,661 |
Aging Analysis of Recorded Investment of Past-Due Financing Receivables | December 31, 2015 30-59 Days Past Due 60-89 Days Past Due 90 Days and Over Past Due Total Past Due Current Total Loans Receivable (Dollars in thousands) One-to four-family residential $ 5,610 $ 1,260 $ 1,205 $ 8,075 $ 240,558 $ 248,633 Commercial real estate 1,585 605 2,190 212,223 214,413 Home equity and lines of credit 369 38 322 729 52,717 53,446 Residential construction 7,848 7,848 Other construction and land 208 397 138 743 56,573 57,316 Commercial 625 625 40,421 41,046 Consumer 12 4 16 3,623 3,639 Total $ 8,409 $ 1,699 $ 2,270 $ 12,378 $ 613,963 $ 626,341 December 31, 2014 30-59 Days Past Due 60-89 Days Past Due 90 Days and Over Past Due Total Past Due Current Total Loans Receivable (Dollars in thousands) One-to four-family residential $ 6,298 $ 448 $ 2,669 $ 9,415 $ 217,794 $ 227,209 Commercial real estate 2,136 909 1,006 4,051 175,384 179,435 Home equity and lines of credit 557 528 759 1,844 54,717 56,561 Residential construction 65 65 7,758 7,823 Other construction and land 1,530 964 473 2,967 47,331 50,298 Commercial 22 22 19,113 19,135 Consumer 247 4 1 252 2,948 3,200 Total $ 10,768 $ 2,875 $ 4,973 $ 18,616 $ 525,045 $ 543,661 |
Summary of Average Impaired Loans | The following table presents investments in loans considered to be impaired and related information on those impaired loans: December 31, 2015 December 31, 2014 Recorded Balance Unpaid Principal Balance Specific Allowance Recorded Balance Unpaid Principal Balance Specific Allowance (Dollars in thousands) Loans without a valuation allowance One-to four-family residential $ 4,289 $ 4,403 $ $ 5,943 $ 6,096 $ Commercial real estate 7,226 8,809 14,231 16,515 Home equity and lines of credit 213 328 1,537 1,912 Residential construction Other construction and land 658 818 1,901 2,579 Commercial $ 12,386 $ 14,358 $ $ 23,612 $ 27,102 $ Loans with a valuation allowance One-to four-family residential $ 2,026 $ 2,026 $ 344 $ 3,969 $ 4,028 $ 719 Commercial real estate 1,787 1,787 61 3,597 3,745 235 Home equity and lines of credit 100 100 6 149 149 14 Residential construction Other construction and land 851 851 61 2,010 2,010 705 Commercial 318 318 38 328 328 3 $ 5,082 $ 5,082 $ 510 $ 10,053 $ 10,260 $ 1,676 Total One-to four-family residential $ 6,315 $ 6,429 $ 344 $ 9,912 $ 10,124 $ 719 Commercial real estate 9,013 10,596 61 17,828 20,260 235 Home equity and lines of credit 313 428 6 1,686 2,061 14 Residential construction Other construction and land 1,509 1,669 61 3,911 4,589 705 Commercial 318 318 38 328 328 3 $ 17,468 $ 19,440 $ 510 $ 33,665 $ 37,362 $ 1,676 The following table presents average impaired loans and interest income recognized on those impaired loans, by class segment, for the periods indicated: For the Year Ended December 31, 2015 2014 2013 Average Investment in Impaired Loans Interest Income Recognized Average Investment in Impaired Loans Interest Income Recognized Average Investment in Impaired Loans Interest Income Recognized (Dollars in thousands) Loans without a valuation allowance One-to four-family residential $ 6,072 $ 174 $ 6,079 $ 242 $ 4,586 $ 160 Commercial real estate 7,999 299 14,255 664 9,610 527 Home equity and lines of credit 213 9 1,728 53 1,255 46 Residential construction Other construction and land 668 30 2,332 70 6,490 528 Commercial $ 14,952 $ 512 $ 24,394 $ 1,029 $ 21,941 $ 1,261 Loans with a valuation allowance One-to four-family residential $ 2,056 $ 88 $ 4,048 $ 137 $ 5,664 $ 221 Commercial real estate 1,808 82 3,715 152 3,660 161 Home equity and lines of credit 100 4 149 6 511 19 Residential construction Other construction and land 1,502 37 2,042 81 937 40 Commercial 323 19 334 20 347 21 $ 5,789 $ 230 $ 10,288 $ 396 $ 11,119 $ 462 Total One-to four-family residential $ 8,128 $ 262 $ 10,127 $ 379 $ 10,250 $ 381 Commercial real estate 9,807 381 17,970 816 13,270 688 Home equity and lines of credit 313 13 1,877 59 1,766 65 Residential construction Other construction and land 2,170 67 4,374 151 7,427 568 Commercial 323 19 334 20 347 21 $ 20,741 $ 742 $ 34,682 $ 1,425 $ 33,060 $ 1,723 |
Financing Receivables on Nonaccrual Status | December 31, 2015 2014 (Dollars in thousands) One-to four-family residential $ 2,893 $ 5,661 Commercial real estate 3,628 7,011 Home equity loans and lines of credit 320 1,347 Residential construction 65 Other construction and land 384 2,679 Commercial 55 15 Consumer 2 Non-performing loans $ 7,280 $ 16,780 |
Summary of TDR Loans | The following tables summarize TDR loans as of the dates indicated: December 31, 2015 Performing Nonperforming Total TDRs TDRs TDRs (Dollars in thousands) One-to-four family residential $ 4,182 $ 211 $ 4,393 Commercial real estate 5,134 2,922 8,056 Home equity and lines of credit 313 313 Residential construction Other construction and land 1,259 250 1,509 Commercial 318 12 330 $ 11,206 $ 3,395 $ 14,601 December 31, 2014 Performing Nonperforming Total TDRs TDRs TDRs (Dollars in thousands) One-to-four family residential $ 5,760 $ 715 $ 6,475 Commercial real estate 10,710 3,797 14,507 Home equity and lines of credit 443 443 Residential construction Other construction and land 1,519 672 2,191 Commercial 328 16 344 $ 18,760 $ 5,200 $ 23,960 Loan modifications that were deemed TDRs at the time of the modification during the period presented are summarized in the tables below: For the Year Ended December 31, 2015 (Dollars in thousands) Number of Loans Pre-modification Outstanding Recorded Investment Post-modification Outstanding Recorded Investment Forgiveness of principal: Commercial real estate 1 1,988 1,693 1 $ 1,988 $ 1,693 Extended payment terms: Commercial real estate 1 833 833 1 $ 833 $ 833 For the Year Ended December 31, 2014 (Dollars in thousands) Number of Loans Pre-modification Outstanding Recorded Investment Post-modification Outstanding Recorded Investment Below market interest rate: One-to-four family residential 3 $ 487 $ 404 Commercial real estate 1 280 280 Home equity loans and lines of credit 1 50 40 Other construction and land 1 151 151 6 $ 968 $ 875 Extended payment terms: Other construction and land 2 $ 720 596 Commercial real estate 7 6,770 5,332 Commercial 1 18 12 10 $ 7,508 $ 5,940 The following table summarizes TDRs that defaulted during the year ended December 31, 2014 and which were modified as TDRs within the previous 12 months. There were no TDRs that defaulted during the year ended December 31, 2015 and which were modified as TDRs within the previous 12 months. For the Year Ended December 31, 2014 Number of Loans Recorded Investment (Dollars in thousands) Below market interest rate: One-to-four family residential 1 $ 135 Home equity and lines of credit 1 50 Other construction and land 2 $ 185 Extended payment terms: Commercial real estate 1 $ 215 |
CONCENTRATIONS OF CREDIT RISK (
CONCENTRATIONS OF CREDIT RISK (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Concentrations Of Credit Risk Tables | |
Concentration of Company loan | December 31, 2015 2014 One-to four-family residential 39.7 % 41.8 % Commercial real estate 34.2 33.0 Home equity and lines of credit 8.5 10.4 Residential construction 1.3 1.4 Other construction and land 9.1 9.3 Commercial 6.6 3.5 Consumer 0.6 0.6 Total loans 100.0 % 100.0 % |
FIXED ASSETS (Tables)
FIXED ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fixed Assets Tables | |
Schedule of Fixed Assets | December 31, 2015 2014 (Dollars in thousands) Land and improvements $ 8,181 $ 7,035 Buildings 16,826 13,079 Furniture, fixtures, and equipment 7,569 7,643 Construction in process 31 63 Total fixed assets 32,607 27,820 Less accumulated depreciation (14,934 ) (14,816 ) Fixed assets, net $ 17,673 $ 13,004 |
Schedule of Future Minimum Rental Payments for Operating Leases | 2016 76 2017 24 Total minimum lease commitments $ 100 |
REAL ESTATE OWNED (Tables)
REAL ESTATE OWNED (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Real Estate Owned Tables | |
Summary of Real Estate Owned and Changes in the Valuation Allowances | As of December 31, (Dollars in thousands) 2015 2014 Real estate owned, gross $ 6,741 $ 6,185 Less: Valuation allowance 1,372 1,760 Real estate owned, net $ 5,369 $ 4,425 Year Ended December 31, (Dollars in thousands) 2015 2014 2013 Valuation allowance, beginning $ 1,760 $ 5,560 $ 3,635 Provision charged to expense 171 2,349 4,093 Reduction due to disposal (559 ) (6,149 ) (2,168 ) Valuation allowance, ending $ 1,372 $ 1,760 $ 5,560 |
BANK OWNED LIFE INSURANCE (BO43
BANK OWNED LIFE INSURANCE (BOLI) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Bank Owned Life Insurance Boli Tables | |
Schedule of composition of Bank Owned Life Insurance | December 31, 2015 2014 (Dollars in thousands) Separate account $ 12,388 $ 12,194 General account 7,636 7,410 Hybrid 834 813 Total $ 20,858 $ 20,417 |
LOAN SERVICING (Tables)
LOAN SERVICING (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Loan Servicing Tables | |
Summary of Unpaid Principal Mortgage and Other Loans | December 31, 2015 2014 2013 (Dollars in thousands) $ 251,492 $ 246,348 $ 255,475 |
Loan Servicing Rights | December 31, 2015 2014 2013 (Dollars in thousands) Loan servicing rights, beginning of period $ 2,187 $ 1,883 $ 1,908 Capitalization from loans sold 544 385 736 Fair value adjustment (387 ) (81 ) (761 ) Loan servicing rights, end of period $ 2,344 $ 2,187 $ 1,883 |
GOODWILL AND OTHER INTANGIBLE45
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in the carrying amounts of goodwill | Year Ended December 31, 2015 2014 Balance at beginning of period $ $ Additions: Goodwill from ASB branch acquisition 711 Balance at end of period $ 711 $ |
Schedule of gross carrying amounts and accumulated amortization of core deposit intangibles | Year Ended December 31, 2015 2014 Gross carrying amount $ 590 $ Accumulated amortization $ 590 $ |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deposits Tables | |
Summary of Deposit Balances and Interest Expenses | As of and for the Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Balance Interest Expense Balance Interest Expense Balance Interest Expense Noninterest-bearing demand $ 121,062 $ $ 86,110 $ $ 70,127 $ Interest-bearing demand 103,198 136 92,877 149 81,645 134 Money market 180,377 558 178,320 983 183,504 1,122 Savings 35,838 33 27,591 36 25,593 36 Time deposits 276,142 3,607 318,219 4,193 323,357 4,534 $ 716,617 $ 4,334 $ 703,117 $ 5,361 $ 684,226 $ 5,826 |
Schedule Of Certificates Of Deposit, By Contractual Maturity | December 31, 2015 (Dollars in thousands) 2016 $ 146,853 2017 55,057 2018 46,555 2019 13,590 2020 7,197 Thereafter 6,890 $ 276,142 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Borrowings Tables | |
Schedule of Outstanding FHLB advances | December 31, 2015 Balance Type Rate Maturity (Dollars in thousands) $ 45,000 Fixed Rate 0.30 % 2/5/2016 5,000 Fixed Rate 0.39 % 3/28/2016 5,000 Fixed Rate 0.52 % 3/30/2016 10,000 Fixed Rate 0.47 % 3/31/2016 5,000 Fixed Rate 0.49 % 6/6/2016 5,000 Fixed Rate 0.69 % 6/30/2016 5,000 Fixed Rate 0.51 % 6/30/2016 5,000 Fixed Rate 0.74 % 7/1/2016 20,000 Daily Rate 0.49 % 7/21/2016 10,000 Fixed Rate 0.58 % 9/28/2016 5,000 Fixed Rate 0.79 % 12/5/2016 5,000 Fixed Rate 0.98 % 12/30/2016 5,000 Fixed Rate 0.74 % 12/30/2016 1,000 Fixed Rate 0.87 % 5/11/2017 2,000 Fixed Rate 1.02 % 6/12/2017 5,000 Fixed Rate 1.38 % 12/29/2017 2,000 Fixed Rate 1.25 % 5/11/2018 10,000 Fixed Rate 1.83 % 4/10/2019 2,500 Fixed Rate 1.77 % 6/11/2019 1,000 Fixed Rate 1.78 % 5/11/2020 $ 153,500 0.65 % December 31, 2014 Balance Type Rate Maturity (Dollars in thousands) $ 10,000 Fixed 0.23 % 3/30/2015 5,000 Fixed 0.37 % 6/30/2015 5,000 Fixed 0.50 % 12/30/2015 5,000 Fixed 0.69 % 6/30/2016 5,000 Fixed 0.98 % 12/30/2016 5,000 Fixed 1.38 % 12/29/2017 10,000 Fixed 1.83 % 4/10/2019 15,000 Variable 2.79 % 4/10/2020 $ 60,000 1.37 % |
Scheduled maturities of FHLB advances and respective weighted average rates | December 31, 2015 Year Balance Weighted Average Rate (Dollars in thousands) 2016 130,000 0.49 % 2017 8,000 1.23 % 2018 2,000 1.25 % 2019 12,500 1.82 % 2020 1,000 1.78 % $ 153,500 0.65 % |
POST-EMPLOYMENT BENEFITS (Table
POST-EMPLOYMENT BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Post-employment Benefits Tables | |
Schedule of liabilities for each plan | December 31, 2015 2014 (Dollars in thousands) SERP $ 4,435 $ 3,653 Cap Equity 4,890 5,308 Director Consultation 258 225 Life Insurance 641 573 $ 10,224 $ 9,759 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock option activity | (Dollars in thousands, except per share data) Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at December 31, 2014 $ Granted 366,000 18.55 Exercised Forfeited Outstanding at December 31, 2015 366,000 $ 18.55 9.92 $ 296 Exercisable at December 31, 2015 $ $ |
Schedule of fair value of options granted Black-Scholes model | Year Ended December 31, 2015 Fair value per option $ 3.46 Expected life (years) 6.5 years Expected stock price volatility 12 % Expected dividend yield 0.00 % Risk-free interest rate 1.99 % Expected forfeiture rate 0.00 % |
Schedule of Restricted stock unit activity | Restricted Stock Units Weighted Average Grant Date Fair Value Unvested restricted stock units at December 31, 2014 $ Granted 157,100 18.55 Vested Forfeited Unvested restricted stock units at December 31, 2015 157,100 $ 18.55 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes Tables | |
Schedule of Components of Income Tax Expense (Benefit) | For the Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Current Federal $ (150 ) $ 112 $ 46 State (25 ) Deferred 2,361 2,852 782 Change in valuation allowance (18,950 ) (731 ) (353 ) Total income tax expense (benefit) $ (16,739 ) $ 2,208 $ 475 |
Schedule of Effective Income Tax Rate Reconciliation | For the Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Computed income tax expense $ 2,480 $ 2,853 $ 21 Deferred tax valuation allowance (18,950 ) (731 ) (353 ) State income tax, net of federal benefit 165 271 76 Nontaxable municipal security income (126 ) (115 ) (123 ) Nontaxable BOLI income (160 ) (182 ) (190 ) Other (148 ) 112 1,044 Actual income tax expense (benefit) $ (16,739 ) $ 2,208 $ 475 Effective tax rate -236.2 % 27.1 % 791.7 % |
Schedule of Deferred Tax Assets and Liabilities | As of December 31, 2015 2014 (Dollars in thousands) Deferred tax assets: Allowance for loan losses $ 3,557 $ 4,235 Deferred compensation and post employment benefits 3,498 3,514 Non-accrual interest 286 202 Valuation reserve for other real estate 516 673 North Carolina NOL carryover 988 1,404 Federal NOL carryover 10,750 12,392 Unrealized losses on securities 697 867 Other 772 393 Gross deferred tax assets 21,064 23,680 Less: valuation allowance (19,810 ) Total deferred tax assets 21,064 3,870 Deferred tax liabilities: Fixed assets 499 461 Loan servicing rights 881 813 Deferred loan costs 708 413 Prepaid expenses 146 94 Total deferred tax liabilities 2,234 1,781 Net deferred tax asset $ 18,830 $ 2,089 |
Schedule of Unused net operating losses and expiration dates | As of December 31, 2015 (Dollars in thousands) Amount Expiration Dates Federal $ 30,713 2032 - 2033 North Carolina $ 37,998 2025 - 2028 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share Tables | |
Schedule of reconciliation of average shares outstanding | For the Year Ended December 31, (Dollars in thousands, except per share amounts) 2015 2014 Numerator: Net income $ 23,825 $ 5,943 Denominator: Weighted-average common shares outstanding - basic 6,546,375 6,546,375 Effect of dilutive shares Weighted-average common shares outstanding - diluted 6,546,375 6,546,375 Earnings per share - basic $ 3.64 $ 0.91 Earnings per share - diluted $ 3.64 $ 0.91 |
ACCUMULATED OTHER COMPREHENSI52
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income Loss Tables | |
Schedule of Accumulated other comprehensive income (loss) | Dollars in thousands) Available for Sale Securities Held to Maturity Securities Transferred from AFS Deferred Tax Valuation Allowance on AFS Total Balance, December 31, 2012 $ 1,266 $ $ 619 $ 1,885 Change in deferred tax valuation allowance attributable to net unrealized losses on investment securities (3,479 ) (3,479 ) Change in unrealized holding gains/losses on securities available for sale (9,431 ) (9,431 ) Reclassification adjustment for net securities gains included in net income (358 ) (358 ) Transfer of net unrealized loss from available for sale to held to maturity 1,263 (1,263 ) Amortization of unrealized losses on securities transferred to held to maturity 34 34 Income tax expense (benefit) 3,886 (13 ) 3,873 Balance, December 31, 2013 $ (3,374 ) $ (1,242 ) $ (2,860 ) $ (7,476 ) Change in deferred tax valuation allowance attributable to net unrealized losses on investment securities 1,992 1,992 Change in unrealized holding gains/losses on securities available for sale 5,665 5,665 Reclassification adjustment for net securities gains included in net income (657 ) (657 ) Transfer of net unrealized loss from available for sale to held to maturity 74 (74 ) Amortization of unrealized losses on securities transferred to held to maturity 199 199 Income tax expense (benefit) (1,944 ) (48 ) (1,992 ) Balance, December 31, 2014 $ (236 ) $ (1,165 ) $ (868 ) $ (2,269 ) Change in deferred tax valuation allowance attributable to net unrealized losses on investment securities 289 289 Change in unrealized holding gains/losses on securities available for sale (166 ) (166 ) Reclassification adjustment for net securities gains included in net income (403 ) (403 ) Transfer of net unrealized loss from available for sale to held to maturity Amortization of unrealized losses on securities transferred to held to maturity 984 984 Income tax expense (benefit) 211 (382 ) (171 ) Balance, December 31, 2015 $ (594 ) $ (563 ) $ (579 ) $ (1,736 ) |
Schedule of Consolidated Statements of Operations affected by amounts reclassified from accumulated other comprehensive income (loss) | Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Gain on sale of investments, net $ 403 $ 657 $ 358 Tax effect Impact, net of tax 403 657 358 Interest income on taxable securities 984 199 34 Tax effect Impact, net of tax 984 199 34 Total reclassifications, net of tax $ 1,387 $ 856 $ 392 |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Regulatory Matters Tables | |
Schedule of actual and required capital amounts and ratios | Following are the required and actual capital amounts and ratios for the Bank: Actual For Capital Adequacy Purposes To Be Well- Capitalized Under Prompt Corrective Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2015: Tier 1 Leverage Capital $ 118,251 12.05% $ 39,270 ≥4% $ 49,087 ≥5% Common Equity Tier 1 Capital $ 118,251 18.07% $ 29,443 ≥4.5% $ 42,529 ≥6.5% Tier 1 Risk-based Capital $ 118,251 18.07% $ 39,257 >6 $ 52,343 ≥8% Total Risk-based Capital $ 126,524 19.34% $ 52,343 ≥8% $ 65,429 ≥10% As of December 31, 2014: Tier 1 Leverage Capital $ 105,556 11.91% $ 35,440 ≥4% $ 44,300 ≥5% Tier 1 Risk-based Capital $ 105,556 19.89% $ 21,231 ≥4% $ 31,847 ≥6% Total Risk-based Capital $ 112,246 21.15% $ 42,462 ≥8% $ 53,078 ≥10% Following are the required and actual capital amounts and ratios for the Company: Actual For Capital Adequacy Purposes (Dollars in thousands) Amount Ratio Amount Ratio As of December 31, 2015: Tier I Leverage Capital $ 136,063 13.85% $ 39,291 ≥4% Common Equity Tier 1 Capital $ 128,007 19.55% $ 29,468 ≥4.5% Tier I Risk-based Capital $ 136,063 20.78% $ 39,291 >6 Total Risk Based Capital $ 144,343 22.04% $ 52,388 ≥8% As of December 31, 2014: Tier I Leverage Capital $ 123,377 13.94% $ 35,398 ≥4% Tier I Risk-based Capital $ 123,377 23.24% $ 21,236 ≥4% Total Risk Based Capital $ 130,067 24.50% $ 42,472 ≥8% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies Tables | |
Schedule of commitments to fund lines of credit | December 31, 2015 (Dollars in thousands) Lines of credit $ 73,747 Standby letters of credit 749 $ 74,496 |
Schedule of Outstanding commitments to originate mortgage loans | December 31, 2015 Amount Range of Rates (Dollar in thousands) Fixed $ 17,517 2.990% to 5.500% Variable 22,172 2.740% to 6.250% $ 39,689 |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures Tables | |
Summary of assets and liabilities measured at fair value on a recurring basis | December 31, 2015 Level 1 Level 2 Level 3 Total (Dollars in thousands) Trading account assets $ 4,714 $ $ $ 4,714 Securities available for sale: U.S. government agencies 25,720 25,720 Municipal securities 39,858 39,858 Mortgage-backed securities 171,174 171,174 U.S. Treasury securities 1,510 1,510 Mutual funds 600 600 6,824 236,752 243,576 Loan servicing rights 2,344 2,344 Forward sales commitments 16 16 Interest rate lock commitments 30 30 Total assets $ 6,824 $ 236,752 $ 2,390 $ 245,966 December 31, 2014 Level 1 Level 2 Level 3 Total (Dollars in thousands) Securities available for sale: U.S. government agencies $ $ 39,482 $ $ 39,482 Municipal securities 25,558 25,558 Mortgage-backed securities 152,718 152,718 U.S. Treasury securities 1,510 1,510 Mutual funds 591 591 2,101 217,758 219,859 Loan servicing rights 2,187 2,187 Forward sales commitments 9 9 Interest rate lock commitments 52 52 Total assets $ 2,101 $ 217,758 $ 2,248 $ 222,107 |
Schedule of changes in assets measured at fair value on a recurring basis | Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Balance at beginning of year $ 2,248 $ 1,888 $ 1,908 Loan servicing right activity, included in servicing income, net 544 385 736 Fair value adjustment (387 ) (81 ) (761 ) Mortgage derivative gains (losses) included in Other income (15 ) 56 5 Balance at end of year $ 2,390 $ 2,248 $ 1,888 |
Summary of assets and liabilities measured at a fair value on a nonrecurring basis | December 31, 2015 Level 1 Level 2 Level 3 Total (Dollars in thousands) Collateral dependent impaired loans: One-to four family residential $ $ $ 4,163 $ 4,163 Commercial real estate 7,226 7,226 Home equity loans and lines of credit 213 213 Other construction and land 658 658 Real estate owned: One-to four family residential 1,384 1,384 Commercial real estate 1,123 1,123 Other construction and land 2,862 2,862 Total assets $ $ $ 17,629 $ 17,629 December 31, 2014 Level 1 Level 2 Level 3 Total (Dollars in thousands) Collateral dependent impaired loans: One-to four family residential $ $ $ 6,407 $ 6,407 Commercial real estate 14,551 14,551 Home equity loans and lines of credit 1,456 1,456 Other construction and land 2,227 2,227 Real estate owned: One-to four family residential 220 220 Commercial real estate 774 774 Other construction and land 3,431 3,431 Total assets $ $ $ 29,066 $ 29,066 |
Schedule of significant unobservable inputs used in the fair value measurements | Valuation Technique Unobservable Input General Range Impaired loans Discounted Appraisals Collateral discounts and estimated selling cost 0 30% Real estate owned Discounted Appraisals Collateral discounts and estimated selling cost 0 30% Loan servicing rights Discounted Cash Flows Prepayment speed 7 35% Discount rate 10 - 16% Forward sales commitments and interest rate lock commitments Change in market price of underlying loan Value of underlying loan 101 - 108% |
Schedule of carrying amount and estimated fair value of the Company's financial instruments | Fair Value Measurements at December 31, 2015 Carrying (Dollars in thousands) Amount Total Level 1 Level 2 Level 3 Assets: Cash and equivalents $ 40,650 $ 40,650 $ 40,650 $ $ Trading securities 4,714 4,714 4,714 Securities available for sale 238,862 238,862 2,110 236,752 Securities held to maturity 41,164 41,812 995 40,817 Loans held for sale 8,348 8,952 8,952 Loans receivable, net 624,072 620,516 620,516 Other investments, at cost 8,834 8,834 8,834 Interest receivable 3,554 3,554 3,554 Bank owned life insurance 20,858 20,858 20,858 Loan servicing rights 2,344 2,344 2,344 Forward sales commitments 16 16 16 Interest rate lock commitments 30 30 30 Liabilities: Demand deposits $ 440,475 440,475 $ $ 440,475 $ Time deposits 276,142 275,403 275,403 Federal Home Loan Bank advances 153,500 153,441 153,441 Junior subordinated debentures 14,433 14,433 14,433 Accrued interest payable 213 213 213 Fair Value Measurements at December 31, 2014 Carrying (Dollars in thousands) Amount Total Level 1 Level 2 Level 3 Assets: Cash and equivalents $ 58,982 $ 58,982 $ 58,982 $ $ Securities available for sale 219,859 219,859 2,101 217,758 Securities held to maturity 29,285 30,890 30,890 Loans held for sale 10,761 11,501 11,501 Loans receivable, net 529,407 546,450 546,450 Other investments, at cost 4,908 4,908 4,908 Interest receivable 2,925 2,925 2,925 Bank owned life insurance 20,417 20,417 20,417 Loan servicing rights 2,187 2,187 2,187 Forward sales commitments 9 9 9 Interest rate lock commitments 52 52 52 Liabilities: Demand deposits $ 384,898 $ 384,898 $ $ 384,898 $ Time deposits 318,219 321,491 321,491 Federal Home Loan Bank advances 60,000 62,108 62,108 Junior subordinated debentures 14,433 14,433 14,433 Accrued interest payable 323 323 323 |
PARENT COMPANY FINANCIAL INFO56
PARENT COMPANY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Parent Company Financial Information Tables | |
Schedule of Condensed Balance Sheet | Condensed Balance Sheets December 31, 2015 2014 (Dollars in thousands) Assets Cash $ 17,545 $ 17,652 Equity investment in subsidiary 128,090 103,498 Equity investment in trust 433 433 Other assets 188 169 Total assets $ 146,256 $ 121,752 Liabilities and Shareholders Equity Junior Subordinated Debentures $ 14,433 $ 14,433 Other liabilities 354 Shareholders Equity 131,469 107,319 Total liabilities and shareholders equity $ 146,256 $ 121,752 |
Schedule of Condensed Income Statement | Condensed Statements of Operations Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Income Interest income $ 190 $ 78 $ Dividends from subsidiary 114 304 78 Expenses Interest 458 509 490 Other 259 29 38 717 538 528 Loss before income taxes and equity in undistributed income of subsidiary (413 ) (460 ) (528 ) Income tax benefit allocated from consolidated income tax return 180 180 172 Loss before equity in undistributed income (loss) of subsidiary (233 ) (280 ) (356 ) Equity in undistributed income (loss) of 24,058 6,223 (59 ) Net income (loss) $ 23,825 $ 5,943 $ (415 ) |
Schedule of Condensed Cash Flow Statement | Condensed Statements of Cash Flows Year Ended December 31, 2015 2014 2013 (Dollars in thousands) Operating activities: Net income (loss) $ 23,825 $ 5,943 $ (415 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Equity in undistributed earnings of subsdiary (24,058 ) (6,223 ) 59 (Increase) decrease in other assets (19 ) (46 ) 6 Increase (decrease) in other liablilities 75 (1,567 ) 484 Net cash provided by (used in) operating activities $ (177 ) $ (1,893 ) $ 134 Investing activities: Investment in subsidiary $ $ (44,581 ) $ Net cash used in investing activities $ $ (44,581 ) $ Financing activities: Proceeds from sale of common stock $ $ 63,651 $ Proceeds from bank subsidiary for share-based compensation 70 Net cash provided by (used in) financing activities $ 70 $ 63,651 $ Increase in cash and cash equivalents (107 ) 17,177 134 Cash and cash equivalents, beginning of year 17,652 475 341 Cash and cash equivalents, end of year $ 17,545 $ 17,652 $ 475 |
ORGANIZATION (Details Narrative
ORGANIZATION (Details Narrative) | Dec. 31, 2015 |
Organization Details Narrative | |
Ownership percentage in Macon Capital Trust I | 100.00% |
SUMMARY OF SIGNIFICANT ACCOUN58
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash with Federal Reserve Bank | $ 600 | $ 600 | |
Advertising Expense | 500 | 300 | $ 300 |
Debt issuance costs of the Junior Subordinated Notes | $ 100 | $ 100 | |
Minimum [Member] | |||
Estimated useful lives of the assets | 4 years | ||
Maximum [Member] | |||
Estimated useful lives of the assets | 30 years |
STOCK CONVERSION AND CHANGE I59
STOCK CONVERSION AND CHANGE IN CORPORATE FORM (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | |
Stock Conversion And Change In Corporate Form Details | |||
Common stock, shares, issued | 6,546,375 | 6,546,375 | |
Common stock price per share | $ 10 | ||
Proceeds from issuance of common stock, gross | $ 65,464 | ||
Stock issuance costs | (1,813) | ||
Proceeds from issuance of common stock, net | 63,651 | ||
Amount contributed to the capital of the bank from stock conversion | 44,581 | ||
Amount Retained by the Company from stock conversion | $ 19,070 | ||
Amount contributed to the capital of the bank from stock conversion, percentage | 70.00% |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Deposits: | ||||
Goodwill | $ 711 | |||
As Recorded by ASB | ||||
Assets | ||||
Cash and cash equivalents | 33,076 | |||
Loans | 4,717 | |||
Premises and equipment | $ 2,080 | |||
Core deposit intangible | ||||
Other assets | $ 16 | |||
Total assets | 39,889 | |||
Deposits: | ||||
Noninterest-bearing demand | 22,084 | |||
Interest-bearing demand | 15 | |||
Money market | 2,556 | |||
Savings | 7,242 | |||
Time deposits | 7,967 | |||
Total deposits | 39,864 | |||
Other liabilities | 25 | |||
Total liabilities | $ 39,889 | |||
Net identifiable assets acquired over liabilities assumed | ||||
Goodwill | ||||
Net assets acquired over liabilities assumed | ||||
Cash paid as deposit premium | $ 1,198 | |||
Fair value of total consideration transferred | $ 1,198 | |||
Fair Value Adjustments | ||||
Assets | ||||
Cash and cash equivalents | ||||
Loans | [1] | $ (72) | ||
Premises and equipment | ||||
Core deposit intangible | [2] | $ 590 | ||
Other assets | ||||
Total assets | $ 518 | |||
Deposits: | ||||
Noninterest-bearing demand | ||||
Interest-bearing demand | ||||
Money market | ||||
Savings | ||||
Time deposits | [3] | $ 31 | ||
Total deposits | $ 31 | |||
Other liabilities | ||||
Total liabilities | $ 31 | |||
Net identifiable assets acquired over liabilities assumed | 487 | |||
Goodwill | 711 | |||
Net assets acquired over liabilities assumed | 1,198 | |||
As Recorded by the Company | ||||
Assets | ||||
Cash and cash equivalents | 33,076 | |||
Loans | 4,645 | |||
Premises and equipment | 2,080 | |||
Core deposit intangible | 590 | |||
Other assets | 16 | |||
Total assets | 40,407 | |||
Deposits: | ||||
Noninterest-bearing demand | 22,084 | |||
Interest-bearing demand | 15 | |||
Money market | 2,556 | |||
Savings | 7,242 | |||
Time deposits | 7,998 | |||
Total deposits | 39,895 | |||
Other liabilities | 25 | |||
Total liabilities | 39,920 | |||
Net identifiable assets acquired over liabilities assumed | 487 | |||
Goodwill | 711 | |||
Net assets acquired over liabilities assumed | $ 1,198 | |||
[1] | Adjustment reflects the fair value adjustments based on the Company's evaluation of the acquired loan portfolio. | |||
[2] | Adjustment reflects the recording of the core deposit intangible on the acquired core deposit accounts. This amount was recorded by the Company as an identifiable intangible asset and will be amortized as an expense on a straight-line basis over the average life of the core deposit base, which is estimated to be 7 years. | |||
[3] | Adjustment reflects the fair value adjustment of time deposits. |
INVESTMENT SECURITIES (Details)
INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Trading Securities Cash | $ 4,714 | |
Amortized Cost | 239,813 | $ 220,241 |
Gross Unrealized Gains | 720 | 944 |
Gross Unrealized Losses | (1,671) | (1,326) |
Estimated fair value | 238,862 | 219,859 |
U.S. Government Agencies [Member] | ||
Amortized Cost | 25,633 | 39,540 |
Gross Unrealized Gains | 123 | 65 |
Gross Unrealized Losses | (36) | (123) |
Estimated fair value | 25,720 | 39,482 |
Municipal Securities [Member] | ||
Amortized Cost | 39,751 | 25,483 |
Gross Unrealized Gains | 311 | 225 |
Gross Unrealized Losses | (204) | (150) |
Estimated fair value | 39,858 | 25,558 |
Mortgage-backed Securities [Member] | ||
Amortized Cost | 172,327 | 153,128 |
Gross Unrealized Gains | 276 | 643 |
Gross Unrealized Losses | (1,429) | (1,053) |
Estimated fair value | 171,174 | 152,718 |
U.S. Treasury securities [Member] | ||
Amortized Cost | 1,500 | 1,500 |
Gross Unrealized Gains | $ 10 | $ 10 |
Gross Unrealized Losses | ||
Estimated fair value | $ 1,510 | $ 1,510 |
Mutual funds [Member] | ||
Amortized Cost | $ 602 | 590 |
Gross Unrealized Gains | $ 1 | |
Gross Unrealized Losses | $ (2) | |
Estimated fair value | $ 600 | $ 591 |
INVESTMENT SECURITIES (Details
INVESTMENT SECURITIES (Details 2) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Amortized Cost | $ 41,164 | $ 29,285 |
Gross Unrealized Gains | 873 | 1,610 |
Gross Unrealized Losses | (225) | (5) |
Estimated Fair Value | 41,812 | 30,890 |
U.S. Government Agencies [Member] | ||
Amortized Cost | 15,877 | 23,193 |
Gross Unrealized Gains | 645 | 1,420 |
Gross Unrealized Losses | (23) | (5) |
Estimated Fair Value | 16,499 | 24,608 |
Municipal Securities [Member] | ||
Amortized Cost | 12,428 | 4,392 |
Gross Unrealized Gains | 199 | $ 190 |
Gross Unrealized Losses | (93) | |
Estimated Fair Value | 12,534 | $ 4,582 |
Mortgage-backed Securities [Member] | ||
Amortized Cost | 4,834 | |
Gross Unrealized Gains | 4 | |
Gross Unrealized Losses | (62) | |
Estimated Fair Value | 4,776 | |
U.S. Treasury securities [Member] | ||
Amortized Cost | $ 1,002 | |
Gross Unrealized Gains | ||
Gross Unrealized Losses | $ (7) | |
Estimated Fair Value | 995 | |
Corporate debt securities [Member] | ||
Amortized Cost | 7,023 | $ 700 |
Gross Unrealized Gains | 25 | |
Gross Unrealized Losses | (40) | |
Estimated Fair Value | $ 7,008 | $ 700 |
Trust preferred securities [Member] | ||
Amortized Cost | $ 1,000 | |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Estimated Fair Value | $ 1,000 |
INVESTMENT SECURITIES (Detail63
INVESTMENT SECURITIES (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investment Securities Details 3 | |||
Book value | $ 4,473 | ||
Market value | 4,399 | ||
Unrealized loss | $ 74 | $ 2,046 |
INVESTMENT SECURITIES (Detail64
INVESTMENT SECURITIES (Details 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investment Securities Details 3 | |||
Beginning unrealized loss related to HTM securities previously recognized in OCI | $ 1,887 | $ 2,012 | |
Additions for transfers to HTM | 74 | $ 2,046 | |
Amortization of unrealized losses on HTM securities previously recognized in OCI | $ (984) | (199) | (34) |
Ending unrealized loss in OCI related to HTM securities previously recognized in OCI | $ 903 | $ 1,887 | $ 2,012 |
INVESTMENT SECURITIES (Detail65
INVESTMENT SECURITIES (Details 5) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Held to maturity, Less Than 12 Months Fair Value | $ 18,669 | $ 1,995 |
Held to maturity, Less Than 12 Months Unrealized Losses | $ 225 | $ 5 |
Held to maturity, Over 12 Months Fair Value | ||
Held to maturity, Over 12 Months Unrealized Losses | ||
Held to maturity, Fair Value | $ 18,669 | $ 1,995 |
Held to maturity, Unrealized Losses | 225 | 5 |
Available for sale, Less Than 12 Months Fair Value | 135,105 | 57,341 |
Available for sale, Less Than 12 Months Unrealized Losses | 1,140 | 281 |
Available for sale, Over 12 Months Fair Value | 21,852 | 62,506 |
Available for sale, Over 12 Months Unrealized Losses | 531 | 1,045 |
Available for sale, Fair Value | 156,957 | 119,847 |
Available for sale, Unrealized Losses | 1,671 | 1,326 |
U.S. Government Agencies [Member] | ||
Held to maturity, Less Than 12 Months Fair Value | 5,705 | 1,995 |
Held to maturity, Less Than 12 Months Unrealized Losses | $ 23 | $ 5 |
Held to maturity, Over 12 Months Fair Value | ||
Held to maturity, Over 12 Months Unrealized Losses | ||
Held to maturity, Fair Value | $ 5,705 | $ 1,995 |
Held to maturity, Unrealized Losses | 23 | 5 |
Available for sale, Less Than 12 Months Fair Value | 13,317 | 14,472 |
Available for sale, Less Than 12 Months Unrealized Losses | $ 36 | 15 |
Available for sale, Over 12 Months Fair Value | 7,893 | |
Available for sale, Over 12 Months Unrealized Losses | 108 | |
Available for sale, Fair Value | $ 13,317 | 22,365 |
Available for sale, Unrealized Losses | 36 | 123 |
Municipal Securities [Member] | ||
Held to maturity, Less Than 12 Months Fair Value | 4,365 | |
Held to maturity, Less Than 12 Months Unrealized Losses | $ 93 | |
Held to maturity, Over 12 Months Fair Value | ||
Held to maturity, Over 12 Months Unrealized Losses | ||
Held to maturity, Fair Value | $ 4,365 | |
Held to maturity, Unrealized Losses | 93 | |
Available for sale, Less Than 12 Months Fair Value | 18,769 | 4,306 |
Available for sale, Less Than 12 Months Unrealized Losses | 176 | 49 |
Available for sale, Over 12 Months Fair Value | 947 | 8,409 |
Available for sale, Over 12 Months Unrealized Losses | 28 | 101 |
Available for sale, Fair Value | 19,716 | 12,715 |
Available for sale, Unrealized Losses | 204 | 150 |
Mortgage-backed Securities [Member] | ||
Held to maturity, Less Than 12 Months Fair Value | 2,693 | |
Held to maturity, Less Than 12 Months Unrealized Losses | $ 62 | |
Held to maturity, Over 12 Months Fair Value | ||
Held to maturity, Over 12 Months Unrealized Losses | ||
Held to maturity, Fair Value | $ 2,693 | |
Held to maturity, Unrealized Losses | 62 | |
Available for sale, Less Than 12 Months Fair Value | 102,419 | 38,563 |
Available for sale, Less Than 12 Months Unrealized Losses | 926 | 217 |
Available for sale, Over 12 Months Fair Value | 20,905 | 46,204 |
Available for sale, Over 12 Months Unrealized Losses | 503 | 836 |
Available for sale, Fair Value | 123,324 | 84,767 |
Available for sale, Unrealized Losses | 1,429 | $ 1,053 |
U.S. Treasury securities [Member] | ||
Held to maturity, Less Than 12 Months Fair Value | 995 | |
Held to maturity, Less Than 12 Months Unrealized Losses | $ 7 | |
Held to maturity, Over 12 Months Fair Value | ||
Held to maturity, Over 12 Months Unrealized Losses | ||
Held to maturity, Fair Value | $ 995 | |
Held to maturity, Unrealized Losses | 7 | |
Corporate debt securities [Member] | ||
Held to maturity, Less Than 12 Months Fair Value | 4,911 | |
Held to maturity, Less Than 12 Months Unrealized Losses | $ 40 | |
Held to maturity, Over 12 Months Fair Value | ||
Held to maturity, Over 12 Months Unrealized Losses | ||
Held to maturity, Fair Value | $ 4,911 | |
Held to maturity, Unrealized Losses | 40 | |
Mutual funds [Member] | ||
Available for sale, Less Than 12 Months Fair Value | 600 | |
Available for sale, Less Than 12 Months Unrealized Losses | $ 2 | |
Available for sale, Over 12 Months Fair Value | ||
Available for sale, Over 12 Months Unrealized Losses | ||
Available for sale, Fair Value | $ 600 | |
Available for sale, Unrealized Losses | $ 2 |
INVESTMENT SECURITIES (Detail66
INVESTMENT SECURITIES (Details 6) - Securities | Dec. 31, 2015 | Dec. 31, 2014 |
Number of securities less than 12 months | 146 | 46 |
Number of securities more than 12 months | 17 | 49 |
Number of securities | 163 | 95 |
U.S. Government Agencies [Member] | ||
Number of securities less than 12 months | 13 | 11 |
Number of securities more than 12 months | 3 | |
Number of securities | 13 | 14 |
Municipal Securities [Member] | ||
Number of securities less than 12 months | 51 | 9 |
Number of securities more than 12 months | 2 | 19 |
Number of securities | 53 | 28 |
Mortgage-backed Securities [Member] | ||
Number of securities less than 12 months | 71 | 26 |
Number of securities more than 12 months | 15 | 27 |
Number of securities | 86 | 53 |
U.S. Treasury securities [Member] | ||
Number of securities less than 12 months | 1 | |
Number of securities more than 12 months | ||
Number of securities | 1 | |
Corporate debt securities [Member] | ||
Number of securities less than 12 months | 9 | |
Number of securities more than 12 months | ||
Number of securities | 9 | |
Mutual funds [Member] | ||
Number of securities less than 12 months | 1 | |
Number of securities more than 12 months | ||
Number of securities | 1 |
INVESTMENT SECURITIES (Detail67
INVESTMENT SECURITIES (Details 7) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investment Securities Details 7 | |||
Gross proceeds | $ 39,022 | $ 19,170 | $ 36,404 |
Gross realized gains | 423 | $ 680 | 522 |
Gross realized losses | 20 | $ 164 | |
Securities pledged against deposits | $ 69,600 | $ 10,700 |
INVESTMENT SECURITIES (Detail68
INVESTMENT SECURITIES (Details 8) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Investment Securities Details 7 | ||
Available for sale, Less than 1 year, Amortized Cost | $ 1,103 | |
Available for sale, Over 1 year through 5 years, Amortized Cost | 27,088 | |
Available for sale, After 5 years through 10 years, Amortized Cost | 15,695 | |
Available for sale, Over 10 years, Amortized Cost | 23,600 | |
Available for sale, Before Amortized Cost Available for sale, Mortgage-backed securities, Amortized Cost | 67,486 | |
Available for sale, Mortgage-backed securities, Amortized Cost | 172,327 | |
Available for sale, Total, Amortized Cost | 239,813 | |
Available for Sale, Less than 1 year, Fair Value | 1,100 | |
Available for Sale, Over 1 year through 5 years, Fair Value | 27,172 | |
Available for Sale, After 5 years through 10 years, Fair Value | 15,701 | |
Available for Sale, Over 10 years, Fair Value | 23,715 | |
Available for sale, Before Amortized Cost Available for sale, Mortgage-backed securities, Fair Value | 67,688 | |
Available for Sale, Mortgage-backed securities, Fair Value | 171,174 | |
Available for Sale, Total, Fair Value | 238,862 | |
Held to Maturity, Less than 1 year, Amortized Cost | 1,002 | |
Held to Maturity, After 5 years through 10 years, Amortized Cost | 13,218 | |
Held to Maturity, Over 10 years, Amortized Cost | 22,110 | |
Held to Maturity, Before Amortized Cost Available for sale, Mortgage-backed securities, Amortized Cost | 36,330 | |
Held to Maturity, Mortgage-backed securities, Amortized Cost | 4,834 | |
Held to Maturity, Total, Amortized Cost | 41,164 | $ 29,285 |
Held to Maturity, Less than 1 year, Fair Value | 995 | |
Held to Maturity, After 5 years through 10 years, Fair Value | 13,189 | |
Held to Maturity, Over 10 years, Fair Value | 22,852 | |
Held to Maturity, Before Amortized Cost Available for sale, Mortgage-backed securities, Fair Value | 37,036 | |
Held to Maturity, Mortgage-backed securities, Fair Value | 4,776 | |
Held to Maturity, Total, Fair Value | $ 41,812 | $ 30,890 |
LOANS RECEIVABLE (Details)
LOANS RECEIVABLE (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, gross | $ 626,341 | $ 543,661 |
Less: Net deferred loan fees | (1,388) | $ (1,695) |
Unamortized premium | 557 | |
Unamortized discount | (1,438) | $ (1,487) |
Loans receivable, net | 624,072 | 540,479 |
One To Four Family Residential [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, gross | 248,633 | 227,209 |
Commercial Real Estate Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, gross | 214,413 | 179,435 |
Home Equity Line of Credit [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, gross | 53,446 | 56,561 |
Residential Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, gross | 7,848 | 7,823 |
Other Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, gross | 57,316 | 50,298 |
Real Estate Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, gross | 581,656 | 521,326 |
Commercial Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, gross | 41,046 | 19,135 |
Consumer Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, gross | 3,639 | 3,200 |
Commercial and Consumer Loan [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, gross | $ 44,685 | $ 22,335 |
LOANS RECEIVABLE (Detail Narrat
LOANS RECEIVABLE (Detail Narrative) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Jan. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Restructuring of loan | $ 14,601 | $ 23,960 | ||||
Interest income recognized for repayments and restructurings | 300 | 300 | ||||
Federal Deposit Insurance Corporation [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Originated loans and purchased percentage | 50.00% | |||||
Outstanding loan balance purchased | $ 9,300 | |||||
Discount on loans purchased | 2,600 | $ 557 | 2,607 | |||
Repayment for loan purchased | 2,800 | |||||
Discount on payments | 500 | |||||
Deferred interest income recognized | $ 300 | |||||
Restructuring of loan | $ 1,800 | |||||
Interest income recognized for repayments and restructurings | $ 200 | 755 | ||||
Federal Reserve Bank Advances [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans pledged as collateral to secure funding amount | $ 88,400 | 92,800 | ||||
Federal Home Loan Bank of Atlanta [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans pledged as collateral to secure funding amount | $ 119,500 | $ 117,900 |
LOANS RECEIVABLE (Details 2)
LOANS RECEIVABLE (Details 2) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jan. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Discount on purchased loans, beginning of period | $ 1,695 | ||||
Interest income recognized for repayments and restructurings | (300) | $ (300) | |||
Discount on purchased loans, end of period | 1,388 | $ 1,695 | |||
Federal Deposit Insurance Corporation [Member] | |||||
Discount on purchased loans, beginning of period | 1,487 | ||||
Additional discount for new purchases | $ 2,600 | 557 | $ 2,607 | ||
Accretion | (311) | $ (365) | |||
Discount applied to charge-offs | $ (295) | ||||
Interest income recognized for repayments and restructurings | $ (200) | $ (755) | |||
Discount on purchased loans, end of period | $ 1,438 | $ 1,487 |
LOANS RECEIVABLE (Details 3)
LOANS RECEIVABLE (Details 3) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Loans Receivable Details 3 | ||
Balance at beginning of year | $ 9,307 | $ 9,827 |
New loans | 30 | 1,695 |
Repayments | (407) | (2,215) |
Balance at end of year | $ 8,930 | $ 9,307 |
ALLOWANCE FOR LOAN LOSSES (Deta
ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | $ 11,072 | $ 14,251 | $ 14,874 |
Provision | (1,500) | 33 | 4,358 |
Charge-offs | (1,322) | (4,554) | (6,649) |
Recoveries | 1,211 | 1,342 | 1,668 |
Balance, end of period | 9,461 | 11,072 | 14,251 |
One To Four Family Residential [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 2,983 | 3,693 | 4,620 |
Provision | (251) | (201) | (77) |
Charge-offs | (536) | (702) | (1,283) |
Recoveries | 259 | 193 | 433 |
Balance, end of period | 2,455 | 2,983 | 3,693 |
Commercial Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 2,717 | 4,360 | 2,973 |
Provision | 388 | 408 | 3,471 |
Charge-offs | (52) | (2,415) | (2,209) |
Recoveries | 168 | 364 | 125 |
Balance, end of period | 3,221 | 2,717 | 4,360 |
Home Equity Line of Credit [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 1,333 | 1,580 | 2,002 |
Provision | 200 | 310 | 316 |
Charge-offs | (540) | (598) | (760) |
Recoveries | 104 | 41 | 22 |
Balance, end of period | 1,097 | 1,333 | 1,580 |
Residential Construction [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 510 | 501 | 429 |
Provision | $ (235) | $ 9 | 154 |
Charge-offs | (193) | ||
Recoveries | $ 3 | 111 | |
Balance, end of period | 278 | $ 510 | 501 |
Other Portfolio Segment [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 2,936 | 3,516 | 4,059 |
Provision | (1,741) | (232) | 430 |
Charge-offs | (137) | (566) | (1,512) |
Recoveries | 342 | 218 | 539 |
Balance, end of period | 1,400 | 2,936 | 3,516 |
Commercial Portfolio Segment [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 308 | 336 | 379 |
Provision | 272 | (58) | (57) |
Charge-offs | (9) | (133) | (17) |
Recoveries | 32 | 163 | 31 |
Balance, end of period | 603 | 308 | 336 |
Consumer Portfolio Segment [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 285 | 265 | 412 |
Provision | (133) | (203) | 121 |
Charge-offs | (48) | (140) | (675) |
Recoveries | 303 | 363 | 407 |
Balance, end of period | $ 407 | $ 285 | $ 265 |
ALLOWANCE FOR LOAN LOSSES (De74
ALLOWANCE FOR LOAN LOSSES (Details 2) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for loan losses | ||||
Individually evaluated for impairment | $ 510 | $ 1,676 | ||
Collectively evaluated for impairment | 8,951 | 9,396 | ||
Balance, end of period | 9,461 | 11,072 | $ 14,251 | $ 14,874 |
Loans Receivable | ||||
Individually evaluated for impairment | 17,468 | 33,665 | ||
Collectively evaluated for impairment | 608,873 | 509,996 | ||
Total Loans Receivable | 626,341 | 543,661 | ||
One To Four Family Residential [Member] | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 344 | 719 | ||
Collectively evaluated for impairment | 2,111 | 2,264 | ||
Balance, end of period | 2,455 | 2,983 | 3,693 | 4,620 |
Loans Receivable | ||||
Individually evaluated for impairment | 6,315 | 9,912 | ||
Collectively evaluated for impairment | 242,318 | 217,297 | ||
Total Loans Receivable | 248,633 | 227,209 | ||
Commercial Real Estate Portfolio Segment [Member] | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 61 | 235 | ||
Collectively evaluated for impairment | 3,160 | 2,482 | ||
Balance, end of period | 3,221 | 2,717 | 4,360 | 2,973 |
Loans Receivable | ||||
Individually evaluated for impairment | 9,013 | 17,828 | ||
Collectively evaluated for impairment | 205,400 | 161,607 | ||
Total Loans Receivable | 214,413 | 179,435 | ||
Home Equity Line of Credit [Member] | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 6 | 14 | ||
Collectively evaluated for impairment | 1,091 | 1,319 | ||
Balance, end of period | 1,097 | 1,333 | 1,580 | 2,002 |
Loans Receivable | ||||
Individually evaluated for impairment | 313 | 1,686 | ||
Collectively evaluated for impairment | 53,133 | 54,875 | ||
Total Loans Receivable | $ 53,446 | $ 56,561 | ||
Residential Construction [Member] | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | ||||
Collectively evaluated for impairment | $ 278 | $ 510 | ||
Balance, end of period | $ 278 | $ 510 | 501 | 429 |
Loans Receivable | ||||
Individually evaluated for impairment | ||||
Collectively evaluated for impairment | $ 7,848 | $ 7,823 | ||
Total Loans Receivable | 7,848 | 7,823 | ||
Other Portfolio Segment [Member] | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 61 | 705 | ||
Collectively evaluated for impairment | 1,339 | 2,231 | ||
Balance, end of period | 1,400 | 2,936 | 3,516 | 4,059 |
Loans Receivable | ||||
Individually evaluated for impairment | 1,509 | 3,911 | ||
Collectively evaluated for impairment | 55,807 | 46,387 | ||
Total Loans Receivable | 57,316 | 50,298 | ||
Commercial Portfolio Segment [Member] | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 38 | 3 | ||
Collectively evaluated for impairment | 565 | 305 | ||
Balance, end of period | 603 | 308 | 336 | 379 |
Loans Receivable | ||||
Individually evaluated for impairment | 318 | 328 | ||
Collectively evaluated for impairment | 40,728 | 18,807 | ||
Total Loans Receivable | $ 41,046 | $ 19,135 | ||
Consumer Portfolio Segment [Member] | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | ||||
Collectively evaluated for impairment | $ 407 | $ 285 | ||
Balance, end of period | $ 407 | $ 285 | $ 265 | $ 412 |
Loans Receivable | ||||
Individually evaluated for impairment | ||||
Collectively evaluated for impairment | $ 3,639 | $ 3,200 | ||
Total Loans Receivable | $ 3,639 | $ 3,200 |
ALLOWANCE FOR LOAN LOSSES (De75
ALLOWANCE FOR LOAN LOSSES (Details 3) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Loans Reported amount | $ 626,341 | $ 543,661 |
One To Four Family Residential [Member] | ||
Loans Reported amount | 248,633 | 227,209 |
Commercial Portfolio Segment [Member] | ||
Loans Reported amount | 41,046 | 19,135 |
Home Equity Line of Credit [Member] | ||
Loans Reported amount | 53,446 | 56,561 |
Residential Construction [Member] | ||
Loans Reported amount | 7,848 | 7,823 |
Other Portfolio Segment [Member] | ||
Loans Reported amount | 57,316 | 50,298 |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans Reported amount | 214,413 | 179,435 |
Consumer Portfolio Segment [Member] | ||
Loans Reported amount | 3,639 | 3,200 |
Graded Loan [Member] | ||
Loans Reported amount | 416,627 | 450,617 |
Graded Loan [Member] | One To Four Family Residential [Member] | ||
Loans Reported amount | 105,584 | 179,572 |
Graded Loan [Member] | Commercial Portfolio Segment [Member] | ||
Loans Reported amount | 40,784 | 13,394 |
Graded Loan [Member] | Home Equity Line of Credit [Member] | ||
Loans Reported amount | 9,967 | 29,338 |
Graded Loan [Member] | Residential Construction [Member] | ||
Loans Reported amount | 5,014 | 6,639 |
Graded Loan [Member] | Other Portfolio Segment [Member] | ||
Loans Reported amount | 40,490 | 43,060 |
Graded Loan [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans Reported amount | 214,195 | 177,541 |
Graded Loan [Member] | Consumer Portfolio Segment [Member] | ||
Loans Reported amount | 593 | 1,073 |
Graded Loan [Member] | Loan Grade One [Member] | ||
Loans Reported amount | $ 10,401 | $ 2,599 |
Graded Loan [Member] | Loan Grade One [Member] | One To Four Family Residential [Member] | ||
Loans Reported amount | ||
Graded Loan [Member] | Loan Grade One [Member] | Commercial Portfolio Segment [Member] | ||
Loans Reported amount | $ 10,336 | $ 2,511 |
Graded Loan [Member] | Loan Grade One [Member] | Home Equity Line of Credit [Member] | ||
Loans Reported amount | ||
Graded Loan [Member] | Loan Grade One [Member] | Residential Construction [Member] | ||
Loans Reported amount | ||
Graded Loan [Member] | Loan Grade One [Member] | Other Portfolio Segment [Member] | ||
Loans Reported amount | ||
Graded Loan [Member] | Loan Grade One [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans Reported amount | $ 65 | $ 68 |
Graded Loan [Member] | Loan Grade One [Member] | Consumer Portfolio Segment [Member] | ||
Loans Reported amount | 20 | |
Graded Loan [Member] | Loan Grade Two [Member] | ||
Loans Reported amount | $ 4,545 | $ 100 |
Graded Loan [Member] | Loan Grade Two [Member] | One To Four Family Residential [Member] | ||
Loans Reported amount | ||
Graded Loan [Member] | Loan Grade Two [Member] | Commercial Portfolio Segment [Member] | ||
Loans Reported amount | $ 99 | $ 100 |
Graded Loan [Member] | Loan Grade Two [Member] | Home Equity Line of Credit [Member] | ||
Loans Reported amount | ||
Graded Loan [Member] | Loan Grade Two [Member] | Residential Construction [Member] | ||
Loans Reported amount | ||
Graded Loan [Member] | Loan Grade Two [Member] | Other Portfolio Segment [Member] | ||
Loans Reported amount | ||
Graded Loan [Member] | Loan Grade Two [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans Reported amount | $ 4,446 | |
Graded Loan [Member] | Loan Grade Two [Member] | Consumer Portfolio Segment [Member] | ||
Loans Reported amount | ||
Graded Loan [Member] | Loan Grade Three [Member] | ||
Loans Reported amount | $ 35,010 | $ 90,180 |
Graded Loan [Member] | Loan Grade Three [Member] | One To Four Family Residential [Member] | ||
Loans Reported amount | 18,518 | 63,065 |
Graded Loan [Member] | Loan Grade Three [Member] | Commercial Portfolio Segment [Member] | ||
Loans Reported amount | 1,734 | 483 |
Graded Loan [Member] | Loan Grade Three [Member] | Home Equity Line of Credit [Member] | ||
Loans Reported amount | 1,358 | 5,978 |
Graded Loan [Member] | Loan Grade Three [Member] | Residential Construction [Member] | ||
Loans Reported amount | 525 | 690 |
Graded Loan [Member] | Loan Grade Three [Member] | Other Portfolio Segment [Member] | ||
Loans Reported amount | 1,479 | 5,154 |
Graded Loan [Member] | Loan Grade Three [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans Reported amount | $ 11,396 | 14,356 |
Graded Loan [Member] | Loan Grade Three [Member] | Consumer Portfolio Segment [Member] | ||
Loans Reported amount | 454 | |
Graded Loan [Member] | Loan Grade Four [Member] | ||
Loans Reported amount | $ 157,918 | 121,411 |
Graded Loan [Member] | Loan Grade Four [Member] | One To Four Family Residential [Member] | ||
Loans Reported amount | 46,942 | 58,948 |
Graded Loan [Member] | Loan Grade Four [Member] | Commercial Portfolio Segment [Member] | ||
Loans Reported amount | 18,586 | 2,917 |
Graded Loan [Member] | Loan Grade Four [Member] | Home Equity Line of Credit [Member] | ||
Loans Reported amount | 1,961 | 10,424 |
Graded Loan [Member] | Loan Grade Four [Member] | Residential Construction [Member] | ||
Loans Reported amount | 2,036 | 2,327 |
Graded Loan [Member] | Loan Grade Four [Member] | Other Portfolio Segment [Member] | ||
Loans Reported amount | 13,850 | 9,027 |
Graded Loan [Member] | Loan Grade Four [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans Reported amount | 74,542 | 37,349 |
Graded Loan [Member] | Loan Grade Four [Member] | Consumer Portfolio Segment [Member] | ||
Loans Reported amount | 1 | 419 |
Graded Loan [Member] | Loan Grade Five [Member] | ||
Loans Reported amount | 172,080 | 175,978 |
Graded Loan [Member] | Loan Grade Five [Member] | One To Four Family Residential [Member] | ||
Loans Reported amount | 33,886 | 44,445 |
Graded Loan [Member] | Loan Grade Five [Member] | Commercial Portfolio Segment [Member] | ||
Loans Reported amount | 9,274 | 6,399 |
Graded Loan [Member] | Loan Grade Five [Member] | Home Equity Line of Credit [Member] | ||
Loans Reported amount | 6,648 | 10,486 |
Graded Loan [Member] | Loan Grade Five [Member] | Residential Construction [Member] | ||
Loans Reported amount | 1,347 | 3,048 |
Graded Loan [Member] | Loan Grade Five [Member] | Other Portfolio Segment [Member] | ||
Loans Reported amount | 22,864 | 21,024 |
Graded Loan [Member] | Loan Grade Five [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans Reported amount | 97,469 | 90,397 |
Graded Loan [Member] | Loan Grade Five [Member] | Consumer Portfolio Segment [Member] | ||
Loans Reported amount | 592 | 179 |
Graded Loan [Member] | Loan Grade Six [Member] | ||
Loans Reported amount | 19,195 | 31,283 |
Graded Loan [Member] | Loan Grade Six [Member] | One To Four Family Residential [Member] | ||
Loans Reported amount | 2,903 | 5,714 |
Graded Loan [Member] | Loan Grade Six [Member] | Commercial Portfolio Segment [Member] | ||
Loans Reported amount | $ 297 | 429 |
Graded Loan [Member] | Loan Grade Six [Member] | Home Equity Line of Credit [Member] | ||
Loans Reported amount | 882 | |
Graded Loan [Member] | Loan Grade Six [Member] | Residential Construction [Member] | ||
Loans Reported amount | $ 1,106 | 574 |
Graded Loan [Member] | Loan Grade Six [Member] | Other Portfolio Segment [Member] | ||
Loans Reported amount | 1,718 | 2,451 |
Graded Loan [Member] | Loan Grade Six [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans Reported amount | $ 13,171 | 21,232 |
Graded Loan [Member] | Loan Grade Six [Member] | Consumer Portfolio Segment [Member] | ||
Loans Reported amount | 1 | |
Graded Loan [Member] | Loan Grade Seven [Member] | ||
Loans Reported amount | $ 17,478 | 29,066 |
Graded Loan [Member] | Loan Grade Seven [Member] | One To Four Family Residential [Member] | ||
Loans Reported amount | 3,335 | 7,400 |
Graded Loan [Member] | Loan Grade Seven [Member] | Commercial Portfolio Segment [Member] | ||
Loans Reported amount | $ 458 | 555 |
Graded Loan [Member] | Loan Grade Seven [Member] | Home Equity Line of Credit [Member] | ||
Loans Reported amount | $ 1,568 | |
Graded Loan [Member] | Loan Grade Seven [Member] | Residential Construction [Member] | ||
Loans Reported amount | ||
Graded Loan [Member] | Loan Grade Seven [Member] | Other Portfolio Segment [Member] | ||
Loans Reported amount | $ 579 | $ 5,404 |
Graded Loan [Member] | Loan Grade Seven [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans Reported amount | $ 13,106 | $ 14,139 |
Graded Loan [Member] | Loan Grade Seven [Member] | Consumer Portfolio Segment [Member] | ||
Loans Reported amount | ||
UnGraded Loan [Member] | ||
Loans Reported amount | $ 209,714 | $ 93,044 |
UnGraded Loan [Member] | One To Four Family Residential [Member] | ||
Loans Reported amount | 143,049 | 47,637 |
UnGraded Loan [Member] | Commercial Portfolio Segment [Member] | ||
Loans Reported amount | 262 | 5,741 |
UnGraded Loan [Member] | Home Equity Line of Credit [Member] | ||
Loans Reported amount | 43,479 | 27,223 |
UnGraded Loan [Member] | Residential Construction [Member] | ||
Loans Reported amount | 2,834 | 1,184 |
UnGraded Loan [Member] | Other Portfolio Segment [Member] | ||
Loans Reported amount | 16,826 | 7,238 |
UnGraded Loan [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans Reported amount | 218 | 1,894 |
UnGraded Loan [Member] | Consumer Portfolio Segment [Member] | ||
Loans Reported amount | 3,046 | 2,127 |
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | ||
Loans Reported amount | 1,718 | 2,139 |
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | One To Four Family Residential [Member] | ||
Loans Reported amount | $ 1,278 | $ 1,390 |
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Commercial Portfolio Segment [Member] | ||
Loans Reported amount | ||
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Home Equity Line of Credit [Member] | ||
Loans Reported amount | $ 321 | $ 359 |
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Residential Construction [Member] | ||
Loans Reported amount | 65 | |
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Other Portfolio Segment [Member] | ||
Loans Reported amount | $ 119 | 165 |
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans Reported amount | 158 | |
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Consumer Portfolio Segment [Member] | ||
Loans Reported amount | 2 | |
UnGraded Loan [Member] | Performing Financing Receivable [Member] | ||
Loans Reported amount | $ 207,996 | 90,905 |
UnGraded Loan [Member] | Performing Financing Receivable [Member] | One To Four Family Residential [Member] | ||
Loans Reported amount | 141,771 | 46,247 |
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Commercial Portfolio Segment [Member] | ||
Loans Reported amount | 262 | 5,741 |
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Home Equity Line of Credit [Member] | ||
Loans Reported amount | 43,158 | 26,864 |
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Residential Construction [Member] | ||
Loans Reported amount | 2,834 | 1,119 |
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Other Portfolio Segment [Member] | ||
Loans Reported amount | 16,707 | 7,073 |
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans Reported amount | 218 | 1,736 |
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Consumer Portfolio Segment [Member] | ||
Loans Reported amount | $ 3,046 | $ 2,125 |
ALLOWANCE FOR LOAN LOSSES (De76
ALLOWANCE FOR LOAN LOSSES (Details 4) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | $ 8,409 | $ 10,768 |
60-89 Days Past | 1,699 | 2,875 |
90 Days and Over Past Due | 2,270 | 4,973 |
Total Past Due | 12,378 | 18,616 |
Current | 613,963 | 525,045 |
Total Loans Receivable | 626,341 | 543,661 |
One To Four Family Residential [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 5,610 | 6,298 |
60-89 Days Past | 1,260 | 448 |
90 Days and Over Past Due | 1,205 | 2,669 |
Total Past Due | 8,075 | 9,415 |
Current | 240,558 | 217,794 |
Total Loans Receivable | 248,633 | 227,209 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | $ 1,585 | 2,136 |
60-89 Days Past | 909 | |
90 Days and Over Past Due | $ 605 | 1,006 |
Total Past Due | 2,190 | 4,051 |
Current | 212,223 | 175,384 |
Total Loans Receivable | 214,413 | 179,435 |
Home Equity Line of Credit [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 369 | 557 |
60-89 Days Past | 38 | 528 |
90 Days and Over Past Due | 322 | 759 |
Total Past Due | 729 | 1,844 |
Current | 52,717 | 54,717 |
Total Loans Receivable | $ 53,446 | $ 56,561 |
Residential Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | ||
60-89 Days Past | ||
90 Days and Over Past Due | $ 65 | |
Total Past Due | 65 | |
Current | $ 7,848 | 7,758 |
Total Loans Receivable | 7,848 | 7,823 |
Other Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 208 | 1,530 |
60-89 Days Past | 397 | 964 |
90 Days and Over Past Due | 138 | 473 |
Total Past Due | 743 | 2,967 |
Current | 56,573 | 47,331 |
Total Loans Receivable | 57,316 | $ 50,298 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | $ 625 | |
60-89 Days Past | $ 22 | |
90 Days and Over Past Due | ||
Total Past Due | $ 625 | $ 22 |
Current | 40,421 | 19,113 |
Total Loans Receivable | 41,046 | 19,135 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 12 | 247 |
60-89 Days Past | $ 4 | 4 |
90 Days and Over Past Due | 1 | |
Total Past Due | $ 16 | 252 |
Current | 3,623 | 2,948 |
Total Loans Receivable | $ 3,639 | $ 3,200 |
ALLOWANCE FOR LOAN LOSSES (De77
ALLOWANCE FOR LOAN LOSSES (Details 5) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Impaired [Line Items] | ||
Recorded Balance, without a valuation allowance | $ 12,386 | $ 23,612 |
Unpaid Principal Balance, without a valuation allowance | 14,358 | 27,102 |
Recorded Balance, Recorded Balance, with a valuation allowance | 5,082 | 10,053 |
Unpaid Principal Balance, with a valuation allowance | 5,082 | 10,260 |
Recorded Balance | 17,468 | 33,665 |
Unpaid Principal Balance | 19,440 | 37,362 |
Specific Allowance | 510 | 1,676 |
One To Four Family Residential [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Balance, without a valuation allowance | 4,289 | 5,943 |
Unpaid Principal Balance, without a valuation allowance | 4,403 | 6,096 |
Recorded Balance, Recorded Balance, with a valuation allowance | 2,026 | 3,969 |
Unpaid Principal Balance, with a valuation allowance | 2,026 | 4,028 |
Recorded Balance | 6,315 | 9,912 |
Unpaid Principal Balance | 6,429 | 10,124 |
Specific Allowance | 344 | 719 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Balance, without a valuation allowance | 7,226 | 14,231 |
Unpaid Principal Balance, without a valuation allowance | 8,809 | 16,515 |
Recorded Balance, Recorded Balance, with a valuation allowance | 1,787 | 3,597 |
Unpaid Principal Balance, with a valuation allowance | 1,787 | 3,745 |
Recorded Balance | 9,013 | 17,828 |
Unpaid Principal Balance | 10,596 | 20,260 |
Specific Allowance | 61 | 235 |
Home Equity Line of Credit [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Balance, without a valuation allowance | 213 | 1,537 |
Unpaid Principal Balance, without a valuation allowance | 328 | 1,912 |
Recorded Balance, Recorded Balance, with a valuation allowance | 100 | 149 |
Unpaid Principal Balance, with a valuation allowance | 100 | 149 |
Recorded Balance | 313 | 1,686 |
Unpaid Principal Balance | 428 | 2,061 |
Specific Allowance | $ 6 | $ 14 |
Residential Construction [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Balance, without a valuation allowance | ||
Unpaid Principal Balance, without a valuation allowance | ||
Recorded Balance, Recorded Balance, with a valuation allowance | ||
Unpaid Principal Balance, with a valuation allowance | ||
Recorded Balance | ||
Unpaid Principal Balance | ||
Specific Allowance | ||
Other Portfolio Segment [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Balance, without a valuation allowance | $ 658 | $ 1,901 |
Unpaid Principal Balance, without a valuation allowance | 818 | 2,579 |
Recorded Balance, Recorded Balance, with a valuation allowance | 851 | 2,010 |
Unpaid Principal Balance, with a valuation allowance | 851 | 2,010 |
Recorded Balance | 1,509 | 3,911 |
Unpaid Principal Balance | 1,669 | 4,589 |
Specific Allowance | $ 61 | $ 705 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Balance, without a valuation allowance | ||
Unpaid Principal Balance, without a valuation allowance | ||
Recorded Balance, Recorded Balance, with a valuation allowance | $ 318 | $ 328 |
Unpaid Principal Balance, with a valuation allowance | 318 | 328 |
Recorded Balance | 318 | 328 |
Unpaid Principal Balance | 318 | 328 |
Specific Allowance | $ 38 | $ 3 |
ALLOWANCE FOR LOAN LOSSES (De78
ALLOWANCE FOR LOAN LOSSES (Details 6) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Average Investment in Impaired Loans, without a valuation allowance | $ 14,952 | $ 24,394 | $ 21,941 |
Interest Income Recognized, without a valuation allowance | 512 | 1,029 | 1,261 |
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance | 5,789 | 10,288 | 11,119 |
Interest Income Recognized, with a valuation allowance | 230 | 396 | 462 |
Average Investment in Impaired Loans | 20,741 | 34,682 | 33,060 |
Interest Income Recognized | 742 | 1,425 | 1,723 |
One To Four Family Residential [Member] | |||
Average Investment in Impaired Loans, without a valuation allowance | 6,072 | 6,079 | 4,586 |
Interest Income Recognized, without a valuation allowance | 174 | 242 | 160 |
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance | 2,056 | 4,048 | 5,664 |
Interest Income Recognized, with a valuation allowance | 88 | 137 | 221 |
Average Investment in Impaired Loans | 8,128 | 10,127 | 10,250 |
Interest Income Recognized | 262 | 379 | 381 |
Commercial Real Estate Portfolio Segment [Member] | |||
Average Investment in Impaired Loans, without a valuation allowance | 7,999 | 9,610 | 14,255 |
Interest Income Recognized, without a valuation allowance | 299 | 527 | 664 |
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance | 1,808 | 3,660 | 3,715 |
Interest Income Recognized, with a valuation allowance | 82 | 161 | 152 |
Average Investment in Impaired Loans | 9,807 | 13,270 | 17,970 |
Interest Income Recognized | 381 | 688 | 816 |
Home Equity Line of Credit [Member] | |||
Average Investment in Impaired Loans, without a valuation allowance | 213 | 1,728 | 1,255 |
Interest Income Recognized, without a valuation allowance | 9 | 53 | 46 |
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance | 100 | 149 | 511 |
Interest Income Recognized, with a valuation allowance | 4 | 6 | 19 |
Average Investment in Impaired Loans | 313 | 1,877 | 1,766 |
Interest Income Recognized | $ 13 | $ 59 | $ 65 |
Residential Construction [Member] | |||
Average Investment in Impaired Loans, without a valuation allowance | |||
Interest Income Recognized, without a valuation allowance | |||
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance | |||
Interest Income Recognized, with a valuation allowance | |||
Average Investment in Impaired Loans | |||
Interest Income Recognized | |||
Other Portfolio Segment [Member] | |||
Average Investment in Impaired Loans, without a valuation allowance | $ 668 | $ 2,332 | $ 6,490 |
Interest Income Recognized, without a valuation allowance | 30 | 70 | 528 |
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance | 1,502 | 2,042 | 937 |
Interest Income Recognized, with a valuation allowance | 37 | 81 | 40 |
Average Investment in Impaired Loans | 2,170 | 4,374 | 7,427 |
Interest Income Recognized | $ 67 | $ 151 | $ 568 |
Commercial Portfolio Segment [Member] | |||
Average Investment in Impaired Loans, without a valuation allowance | |||
Interest Income Recognized, without a valuation allowance | |||
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance | $ 323 | $ 334 | $ 347 |
Interest Income Recognized, with a valuation allowance | 19 | 20 | 21 |
Average Investment in Impaired Loans | 323 | 334 | 347 |
Interest Income Recognized | $ 19 | $ 20 | $ 21 |
ALLOWANCE FOR LOAN LOSSES (De79
ALLOWANCE FOR LOAN LOSSES (Details 7) - Nonperforming Financing Receivable [Member] - Loans [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Non Performing Loan Receivables and Other Assets [Line Items] | ||
Finance receivable, non-accrual | $ 7,280 | $ 16,780 |
One To Four Family Residential [Member] | ||
Non Performing Loan Receivables and Other Assets [Line Items] | ||
Finance receivable, non-accrual | 2,893 | 5,661 |
Commercial Real Estate Portfolio Segment [Member] | ||
Non Performing Loan Receivables and Other Assets [Line Items] | ||
Finance receivable, non-accrual | 3,628 | 7,011 |
Home Equity Line of Credit [Member] | ||
Non Performing Loan Receivables and Other Assets [Line Items] | ||
Finance receivable, non-accrual | $ 320 | 1,347 |
Residential Construction [Member] | ||
Non Performing Loan Receivables and Other Assets [Line Items] | ||
Finance receivable, non-accrual | 65 | |
Other Portfolio Segment [Member] | ||
Non Performing Loan Receivables and Other Assets [Line Items] | ||
Finance receivable, non-accrual | $ 384 | 2,679 |
Commercial Portfolio Segment [Member] | ||
Non Performing Loan Receivables and Other Assets [Line Items] | ||
Finance receivable, non-accrual | $ 55 | 15 |
Consumer Portfolio Segment [Member] | ||
Non Performing Loan Receivables and Other Assets [Line Items] | ||
Finance receivable, non-accrual | $ 2 |
ALLOWANCE FOR LOAN LOSSES (De80
ALLOWANCE FOR LOAN LOSSES (Details 8) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Modifications [Line Items] | ||
TDR loans | $ 14,601 | $ 23,960 |
Performing Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 11,206 | 18,760 |
Nonperforming Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 3,395 | 5,200 |
One To Four Family Residential [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 4,393 | 6,475 |
One To Four Family Residential [Member] | Performing Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 4,182 | 5,760 |
One To Four Family Residential [Member] | Nonperforming Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 211 | 715 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 8,056 | 14,507 |
Commercial Real Estate Portfolio Segment [Member] | Performing Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 5,134 | 10,710 |
Commercial Real Estate Portfolio Segment [Member] | Nonperforming Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 2,922 | 3,797 |
Home Equity Line of Credit [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 313 | 443 |
Home Equity Line of Credit [Member] | Performing Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | $ 313 | $ 443 |
Home Equity Line of Credit [Member] | Nonperforming Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | ||
Residential Construction [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | ||
Residential Construction [Member] | Performing Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | ||
Residential Construction [Member] | Nonperforming Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | ||
Other Portfolio Segment [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | $ 1,509 | $ 2,191 |
Other Portfolio Segment [Member] | Performing Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 1,259 | 1,519 |
Other Portfolio Segment [Member] | Nonperforming Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 250 | 672 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 330 | 344 |
Commercial Portfolio Segment [Member] | Performing Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 318 | 328 |
Commercial Portfolio Segment [Member] | Nonperforming Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | $ 12 | $ 16 |
ALLOWANCE FOR LOAN LOSSES (De81
ALLOWANCE FOR LOAN LOSSES (Details 9) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)LoansModifications | Dec. 31, 2014USD ($)LoansModifications | |
Below Market Interest Rate [Member] | ||
Number of Loans | LoansModifications | 6 | |
Pre-modification Outstanding Recorded Investment | $ 968 | |
Post-modification Outstanding Recorded Investment | $ 875 | |
Modification Outstanding Recorded Investment | LoansModifications | 2 | |
Modification Outstanding Recorded Investment | $ 185 | |
Below Market Interest Rate [Member] | One To Four Family Residential [Member] | ||
Number of Loans | LoansModifications | 3 | |
Pre-modification Outstanding Recorded Investment | $ 487 | |
Post-modification Outstanding Recorded Investment | $ 404 | |
Modification Outstanding Recorded Investment | LoansModifications | 1 | |
Modification Outstanding Recorded Investment | $ 135 | |
Below Market Interest Rate [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Number of Loans | LoansModifications | 1 | |
Pre-modification Outstanding Recorded Investment | $ 280 | |
Post-modification Outstanding Recorded Investment | $ 280 | |
Below Market Interest Rate [Member] | Home Equity Line of Credit [Member] | ||
Number of Loans | LoansModifications | 1 | |
Pre-modification Outstanding Recorded Investment | $ 50 | |
Post-modification Outstanding Recorded Investment | $ 40 | |
Modification Outstanding Recorded Investment | LoansModifications | 1 | |
Modification Outstanding Recorded Investment | $ 50 | |
Below Market Interest Rate [Member] | Other Portfolio Segment [Member] | ||
Number of Loans | LoansModifications | 1 | |
Pre-modification Outstanding Recorded Investment | $ 151 | |
Post-modification Outstanding Recorded Investment | $ 151 | |
Modification Outstanding Recorded Investment | LoansModifications | ||
Modification Outstanding Recorded Investment | ||
Extended Payment Term [Member] | ||
Number of Loans | LoansModifications | 1 | 10 |
Pre-modification Outstanding Recorded Investment | $ 833 | $ 7,508 |
Post-modification Outstanding Recorded Investment | $ 833 | $ 5,940 |
Extended Payment Term [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Number of Loans | LoansModifications | 1 | 7 |
Pre-modification Outstanding Recorded Investment | $ 833 | $ 6,770 |
Post-modification Outstanding Recorded Investment | $ 833 | $ 5,332 |
Extended Payment Term [Member] | Other Portfolio Segment [Member] | ||
Number of Loans | LoansModifications | 2 | |
Pre-modification Outstanding Recorded Investment | $ 720 | |
Post-modification Outstanding Recorded Investment | $ 596 | |
Extended Payment Term [Member] | Commercial Portfolio Segment [Member] | ||
Number of Loans | LoansModifications | 1 | |
Pre-modification Outstanding Recorded Investment | $ 18 | |
Post-modification Outstanding Recorded Investment | $ 12 | |
Modification Outstanding Recorded Investment | LoansModifications | 1 | |
Modification Outstanding Recorded Investment | $ 215 | |
Forgiveness of Principal [Member] | ||
Number of Loans | LoansModifications | 1 | |
Pre-modification Outstanding Recorded Investment | $ 1,988 | |
Post-modification Outstanding Recorded Investment | $ 1,693 | |
Forgiveness of Principal [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Number of Loans | LoansModifications | 1 | |
Pre-modification Outstanding Recorded Investment | $ 1,988 | |
Post-modification Outstanding Recorded Investment | $ 1,693 |
CONCENTRATIONS OF CREDIT RISK82
CONCENTRATIONS OF CREDIT RISK (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Maximum legal lending limits | $ 19,100 | $ 17,500 |
Percentage of Total Loan | 100.00% | 100.00% |
One To Four Family Residential [Member] | ||
Percentage of Total Loan | 39.70% | 41.80% |
Commercial Real Estate Portfolio Segment [Member] | ||
Percentage of Total Loan | 34.20% | 33.00% |
Home Equity Line of Credit [Member] | ||
Percentage of Total Loan | 8.50% | 10.40% |
Residential Construction [Member] | ||
Percentage of Total Loan | 1.30% | 1.40% |
Other Portfolio Segment [Member] | ||
Percentage of Total Loan | 9.10% | 9.30% |
Commercial Portfolio Segment [Member] | ||
Percentage of Total Loan | 6.60% | 3.50% |
Consumer Portfolio Segment [Member] | ||
Percentage of Total Loan | 0.60% | 0.60% |
FIXED ASSETS (Details)
FIXED ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Total premises and equipment | $ 32,607 | $ 27,820 | |
Less: Accumulated depreciation | (14,934) | (14,816) | |
Premises and equipment, net | 17,673 | 13,004 | |
Depreciation and leasehold amortization expense | 1,000 | 900 | $ 800 |
Land [Member] | |||
Total premises and equipment | 8,181 | 7,035 | |
Building [Member] | |||
Total premises and equipment | 16,826 | 13,079 | |
Furniture and Fixtures [Member] | |||
Total premises and equipment | 7,569 | 7,643 | |
Construction in Progress [Member] | |||
Total premises and equipment | $ 31 | $ 63 |
FIXED ASSETS (Details 2)
FIXED ASSETS (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fixed Assets Details 2 | |||
2,016 | $ 76 | ||
2,017 | 24 | ||
Total | 100 | ||
Rental Expense | $ 100 | $ 100 | $ 100 |
REAL ESTATE OWNED (Details)
REAL ESTATE OWNED (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Real Estate Owned Details | ||||
Real estate owned, gross | $ 6,741 | $ 6,185 | ||
Less: Valuation allowance | 1,372 | 1,760 | $ 5,560 | $ 3,635 |
Real estate owned, net | $ 5,369 | $ 4,425 |
REAL ESTATE OWNED (Details 2)
REAL ESTATE OWNED (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Real Estate Owned Valuation Allowance [Roll Forward] | |||
Valuation allowance, beginning | $ 1,760 | $ 5,560 | $ 3,635 |
Provision charged to expense | 171 | 2,349 | 4,093 |
Reduction due to disposal | (559) | (6,149) | (2,168) |
Valuation allowance, ending | 1,372 | 1,760 | $ 5,560 |
Real estate acquired through foreclosure | 6,741 | $ 6,185 | |
Residential Real Estate [Member] | |||
Real Estate Owned Valuation Allowance [Roll Forward] | |||
Real estate acquired through foreclosure | 700 | ||
Other real estate | $ 1,400 |
BANK OWNED LIFE INSURANCE (BO87
BANK OWNED LIFE INSURANCE (BOLI) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Bank Owned Life Insurance Boli Details | ||
Separate account | $ 12,388 | $ 12,194 |
General account | 7,636 | 7,410 |
Hybrid | 834 | 813 |
Bank owned life insurance | $ 20,858 | $ 20,417 |
LOAN SERVICING (Details)
LOAN SERVICING (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Loan Servicing Details | |||
Unpaid principal balance of mortgage loans serviced for others | $ 251,492 | $ 246,348 | $ 255,475 |
LOAN SERVICING (Details 2)
LOAN SERVICING (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Loan Servicing Details 2 | |||
Loan servicing rights, beginning of period | $ 2,187 | $ 1,883 | $ 1,908 |
Capitalization from loans sold | 544 | 385 | 736 |
Fair value adjustment | (387) | (81) | (761) |
Loan servicing rights, end of period | 2,344 | 2,187 | $ 1,883 |
Escrow deposits | $ 400 | $ 600 |
GOODWILL AND OTHER INTANGIBLE90
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Balance at beginning of period | ||
Goodwill from ASB branch acquisition | $ 711 | |
Balance at end of period | $ 711 |
GOODWILL AND OTHER INTANGIBLE91
GOODWILL AND OTHER INTANGIBLE ASSETS (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Gross carrying amount | $ 590 | ||
Accumulated amortization | |||
Finite Lived Core Deposits Net | $ 590 | ||
Amortization expense | $ 100 | $ 100 | $ 100 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Deposits By Type [Line Items] | |||
Balance | $ 716,617 | $ 703,117 | $ 684,226 |
Interest Expense | 4,334 | 5,361 | 5,826 |
Noninterest-bearing demand [Member] | |||
Deposits By Type [Line Items] | |||
Balance | $ 121,062 | $ 86,110 | $ 70,127 |
Interest Expense | |||
Interest-bearing Deposits [Member] | |||
Deposits By Type [Line Items] | |||
Balance | $ 103,198 | $ 92,877 | $ 81,645 |
Interest Expense | 136 | 149 | 134 |
Money Market Funds [Member] | |||
Deposits By Type [Line Items] | |||
Balance | 180,377 | 178,320 | 183,504 |
Interest Expense | 558 | 983 | 1,122 |
Savings Deposits [Member] | |||
Deposits By Type [Line Items] | |||
Balance | 35,838 | 27,591 | 25,593 |
Interest Expense | 33 | 36 | 36 |
Time deposit [Member] | |||
Deposits By Type [Line Items] | |||
Balance | 276,142 | 318,219 | 323,357 |
Interest Expense | $ 3,607 | $ 4,193 | $ 4,534 |
DEPOSITS (Details 2)
DEPOSITS (Details 2) $ in Thousands | Dec. 31, 2015USD ($) |
Deposits Details 2 | |
2,016 | $ 146,853 |
2,017 | 55,057 |
2,018 | 46,555 |
2,019 | 13,590 |
2,020 | 7,197 |
Thereafter | 6,890 |
Deposits | $ 276,142 |
DEPOSITS (Details Narrative)
DEPOSITS (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deposits Details Narrative | ||
Time Deposits, $250,000 or More | $ 26,400 | $ 39,500 |
Brokered Deposits | 0 | 9,200 |
Deposits from Related Parties | $ 1,700 | $ 1,800 |
BORROWINGS (Details)
BORROWINGS (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Balance | $ 153,500 | $ 60,000 |
Rate | 0.65% | 1.37% |
Maturity 3/30/2015 [Member] | ||
Balance | $ 10,000 | |
Type | Fixed | |
Rate | 0.23% | |
Maturity 6/30/2015 [Member] | ||
Balance | $ 5,000 | |
Type | Fixed | |
Rate | 0.37% | |
Maturity 12/30/2015 [Member] | ||
Balance | $ 5,000 | |
Type | Fixed | |
Rate | 0.50% | |
Maturity 6/30/2016 [Member] | ||
Balance | $ 5,000 | $ 5,000 |
Type | Fixed | Fixed |
Rate | 0.69% | 0.69% |
Maturity 12/30/2016 [Member] | ||
Balance | $ 5,000 | $ 5,000 |
Type | Fixed | Fixed |
Rate | 0.98% | 0.98% |
Maturity 12/29/2017 [Member] | ||
Balance | $ 5,000 | $ 5,000 |
Type | Fixed | Fixed |
Rate | 1.38% | 1.38% |
Maturity 04/10/2019 [Member] | ||
Balance | $ 10,000 | |
Type | Fixed | |
Rate | 1.83% | |
Maturity 04/10/2020 [Member] | ||
Balance | $ 15,000 | |
Type | Floating | |
Rate | 2.79% | |
Maturity 2/5/2016 [Member] | ||
Balance | $ 45,000 | |
Type | Fixed | |
Rate | 0.30% | |
Maturity 3/28/2016 [Member] | ||
Balance | $ 5,000 | |
Type | Fixed | |
Rate | 0.39% | |
Maturity 3/30/2016 [Member] | ||
Balance | $ 5,000 | |
Type | Fixed | |
Rate | 0.52% | |
Maturity 3/31/2016 [Member] | ||
Balance | $ 10,000 | |
Type | Fixed | |
Rate | 0.47% | |
Maturity 6/6/2016 [Member] | ||
Balance | $ 5,000 | |
Type | Fixed | |
Rate | 0.49% | |
Maturity 6/30/2016 [Member] | ||
Balance | $ 5,000 | |
Type | Fixed | |
Rate | 0.51% | |
Maturity 7/1/2016 [Member] | ||
Balance | $ 5,000 | |
Type | Fixed | |
Rate | 0.74% | |
Maturity 7/21/2016 [Member] | ||
Balance | $ 20,000 | |
Type | Floating | |
Rate | 0.49% | |
Maturity 9/28/2016 [Member] | ||
Balance | $ 10,000 | |
Type | Fixed | |
Rate | 0.58% | |
Maturity 12/5/2016 [Member] | ||
Balance | $ 5,000 | |
Type | Fixed | |
Rate | 0.79% | |
Maturity 12/30/2016 [Member] | ||
Balance | $ 5,000 | |
Type | Fixed | |
Rate | 0.74% | |
Maturity 05/11/2017 [Member] | ||
Balance | $ 1,000 | |
Type | Fixed | |
Rate | 0.87% | |
Maturity 06/12/2017 [Member] | ||
Balance | $ 2,000 | |
Type | Fixed | |
Rate | 1.02% | |
Maturity 5/11/2018 [Member] | ||
Balance | $ 2,000 | |
Type | Fixed | |
Rate | 1.25% | |
Maturity 4/10/2019 [Member] | ||
Balance | $ 10,000 | |
Type | Fixed | |
Rate | 1.83% | |
Maturity 6/11/2019 [Member] | ||
Balance | $ 2,500 | |
Type | Fixed | |
Rate | 1.77% | |
Maturity 5/11/2020 [Member] | ||
Balance | $ 1,000 | |
Type | Fixed | |
Rate | 1.78% |
BORROWINGS (Details 2)
BORROWINGS (Details 2) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Federal Home Loan Bank, Advances [Abstract] | ||
2,016 | $ 130,000 | |
2,017 | 8,000 | |
2,018 | 2,000 | |
2,019 | 12,500 | |
2,020 | 1,000 | |
Total | $ 153,500 | $ 60,000 |
Federal Home Loan Bank, Advances, Weighted Average Rate [Abstract] | ||
2,016 | 0.49% | |
2,017 | 1.23% | |
2,018 | 1.25% | |
2,019 | 1.82% | |
2,020 | 1.78% | |
Total | 0.65% | 1.37% |
Federal Reserve Bank Advances [Member] | ||
Federal Home Loan Bank, Advances, Weighted Average Rate [Abstract] | ||
Borrowing Capacity with the Federal Reserve Discount Window | $ 48,200 |
JUNIOR SUBORDINATED DEBT (Detai
JUNIOR SUBORDINATED DEBT (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Junior subordinated notes | $ 14,433 | $ 14,433 |
Junior Subordinated Debt [Member] | ||
Debt Instrument [Line Items] | ||
Junior subordinated notes | $ 14,433 | |
Debt instrument, interest rate | 3.34% | |
Debt instrument, maturity date | Mar. 30, 2034 | |
Debt redemption price percentage | 100.00% | |
Junior Subordinated Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 2.80% |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Benefit Plans Details Narrative | |||
Defined Contribution Plan, Contributions by Employer | $ 400 | $ 200 | $ 200 |
POST-EMPLOYMENT BENEFITS (Detai
POST-EMPLOYMENT BENEFITS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan, Liabilities | $ 10,224 | $ 9,759 | |
Expense related to Defined Benefit Plan | 1,400 | 600 | $ 600 |
Supplemental Employee Retirement Plan [Member] | |||
Defined Benefit Plan, Liabilities | 4,435 | 3,653 | |
Cap Equity [Member] | |||
Defined Benefit Plan, Liabilities | 4,890 | 4,919 | |
Director Consultation [Member] | |||
Defined Benefit Plan, Liabilities | 258 | 225 | |
Life Insurance [Member] | |||
Defined Benefit Plan, Liabilities | $ 641 | $ 389 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Employee Stock Option [Member] | |
Maximum number of shares to be awarded under plan | 458,246 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Share-based Compensation Arrangement Options, Outstanding | |
Granted | 366,000 |
Exercised | |
Forfeited or expired | |
Share-based Compensation Arrangement Options, Outstanding | 366,000 |
Option Exercisable | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Weighted Average Exercise Price of Options Outstanding | $ / shares | |
Granted | $ / shares | $ 18.55 |
Exercised | $ / shares | |
Forfeited, exchanged or expired | $ / shares | |
Weighted Average Exercise Price of Options Outstanding | $ / shares | $ 18.55 |
Weighted Average Exercise Price of Options Exercisable | $ / shares | |
Weighted Avg. Remaining Years Contractual Life (in years) | 9 years 11 months 1 day |
Aggregate Intrinsic Value of Options Outstanding | $ | $ 296 |
Restricted Stock [Member] | |
Maximum number of shares to be awarded under plan | 196,391 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Share-based Compensation Arrangement Options, Outstanding | |
Granted | 157,100 |
Exercised | |
Forfeited or expired | |
Share-based Compensation Arrangement Options, Outstanding | 157,100 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Weighted Average Exercise Price of Options Outstanding | $ / shares | |
Granted | $ / shares | $ 18.55 |
Exercised | $ / shares | |
Forfeited, exchanged or expired | $ / shares | |
Weighted Average Exercise Price of Options Outstanding | $ / shares | $ 18.55 |
Weighted Avg. Remaining Years Contractual Life (in years) | 4 years 11 months 1 day |
SHARE-BASED COMPENSATION (De101
SHARE-BASED COMPENSATION (Details 2) - Employee Stock Option [Member] | 12 Months Ended |
Dec. 31, 2015$ / shares | |
Valuation and related assumption for option program | |
Fair value per option | $ 3.46 |
Expected life (in years) | 6 years 6 months |
Expected stock price volatility | 12.00% |
Expected dividend yield | 0.00% |
Risk-free interest rate | 1.99% |
Expected forfeiture rate | 0.00% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes Details | |||
Federal | $ (150) | $ 112 | $ 46 |
State | (25) | ||
Deferred | $ 2,361 | 2,852 | $ 782 |
Change in valuation allowance | (18,950) | (731) | (353) |
Income tax expense (benefit) | $ (16,739) | $ 2,208 | $ 475 |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes Details | |||
Computed income tax expense (benefit) | $ 2,480 | $ 2,853 | $ 21 |
Deferred tax valuation allowance | (18,950) | (731) | (353) |
State income tax, net of federal benefit | 165 | 271 | 76 |
Nontaxable municipal security income | (126) | (115) | (123) |
Nontaxable BOLI income | (160) | (182) | (190) |
Other | 148 | 112 | 1,044 |
Actual income tax expense (benefit) | $ (16,739) | $ 2,208 | $ 475 |
Effective tax rate | (236.20%) | 27.10% | 791.70% |
INCOME TAXES (Details 3)
INCOME TAXES (Details 3) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Allowance for loan losses | $ 3,557 | $ 4,235 |
Deferred compensation and post employment benefits | 3,498 | 3,514 |
Non-accrual interest | 286 | 202 |
Valuation reserve for other real estate | 516 | 673 |
North Carolina NOL carryover | 988 | 1,404 |
Federal NOL carryover | 10,750 | 12,392 |
Unrealized losses on securities | 697 | 867 |
Other | 772 | 393 |
Gross deferred tax assets | $ 21,064 | 23,680 |
Less: valuation allowance | (19,810) | |
Total deferred tax assets | $ 21,064 | 3,870 |
Fixed assets | 499 | 461 |
Loan servicing rights | 881 | 813 |
Deferred loan costs | 708 | 413 |
Prepaid expenses | 146 | 94 |
Total deferred tax liabilities | 2,234 | 1,781 |
Net deferred tax asset | $ 18,830 | $ 2,089 |
INCOME TAXES (Details 4)
INCOME TAXES (Details 4) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Federal [Member] | |
Unused Net Operating Losses | $ 30,713 |
Federal [Member] | Minimum [Member] | |
Expiration Dates | 2,032 |
Federal [Member] | Maximum [Member] | |
Expiration Dates | 2,033 |
North Carolina [Member] | |
Unused Net Operating Losses | $ 37,998 |
North Carolina [Member] | Minimum [Member] | |
Expiration Dates | 2,025 |
North Carolina [Member] | Maximum [Member] | |
Expiration Dates | 2,028 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share Details | |||
Net income | $ 23,825 | $ 5,943 | $ (415) |
Weighted average shares outstanding | 6,546,375 | 6,546,375 | |
Effect of dilutive securities | |||
Average shares outstanding | 6,546,375 | 6,546,375 | |
Earnings per share - basic | $ 3.64 | $ 0.91 | |
Earnings per share - diluted | $ 3.64 | $ 0.91 |
ACCUMULATED OTHER COMPREHENS107
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Balance, beginning of period | $ (2,269) | $ (7,476) | $ 1,885 |
Change in deferred tax valuation allowance attributable to unrealized (gain) loss on investment securities available for sale | 289 | 1,992 | (3,479) |
Change in unrealized holding gain (loss) on securities available for sale | (166) | 5,665 | (9,431) |
Reclassification adjustment for net securities gains realized in net income | $ (403) | $ (657) | $ (358) |
Transfer of net unrealized loss from available for sale to held to maturity | |||
Amortization of unrealized gains and losses on securities transferred to held to maturity | $ 984 | $ 199 | $ 34 |
Income tax benefit (expense) | (171) | (1,992) | 3,873 |
Balance, end of period | (1,736) | (2,269) | (7,476) |
Available-for-sale Securities [Member] | |||
Balance, beginning of period | $ (236) | $ (3,374) | $ 1,266 |
Change in deferred tax valuation allowance attributable to unrealized (gain) loss on investment securities available for sale | |||
Change in unrealized holding gain (loss) on securities available for sale | $ (166) | $ 5,665 | $ (9,431) |
Reclassification adjustment for net securities gains realized in net income | $ (403) | (657) | (358) |
Transfer of net unrealized loss from available for sale to held to maturity | $ 74 | $ 1,263 | |
Amortization of unrealized gains and losses on securities transferred to held to maturity | |||
Income tax benefit (expense) | $ 211 | $ (1,944) | $ 3,886 |
Balance, end of period | (594) | (236) | $ (3,374) |
Held-to-maturity Securities [Member] | |||
Balance, beginning of period | $ (1,165) | $ (1,242) | |
Change in deferred tax valuation allowance attributable to unrealized (gain) loss on investment securities available for sale | |||
Change in unrealized holding gain (loss) on securities available for sale | |||
Reclassification adjustment for net securities gains realized in net income | |||
Transfer of net unrealized loss from available for sale to held to maturity | $ (74) | $ (1,263) | |
Amortization of unrealized gains and losses on securities transferred to held to maturity | $ 984 | 199 | 34 |
Income tax benefit (expense) | (382) | (48) | (13) |
Balance, end of period | (563) | (1,165) | (1,242) |
Valuation Allowance of Deferred Tax Assets [Member] | |||
Balance, beginning of period | (868) | (2,860) | 619 |
Change in deferred tax valuation allowance attributable to unrealized (gain) loss on investment securities available for sale | $ 289 | $ 1,992 | $ (3,479) |
Change in unrealized holding gain (loss) on securities available for sale | |||
Reclassification adjustment for net securities gains realized in net income | |||
Transfer of net unrealized loss from available for sale to held to maturity | |||
Amortization of unrealized gains and losses on securities transferred to held to maturity | |||
Income tax benefit (expense) | |||
Balance, end of period | $ (579) | $ (868) | $ (2,860) |
ACCUMULATED OTHER COMPREHENS108
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details 2) - Reclassification out of Accumulated Other Comprehensive Income [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Impact, net of tax | $ 1,387 | $ 856 | $ 392 |
Gain on sale of investments, net [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Before tax | $ 403 | $ 657 | $ 358 |
Tax effect | |||
Impact, net of tax | $ 403 | $ 657 | $ 358 |
Investment Income (Expense) [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Before tax | $ 984 | $ 199 | $ 34 |
Tax effect | |||
Impact, net of tax | $ 984 | $ 199 | $ 34 |
REGULATORY MATTERS (Details)
REGULATORY MATTERS (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Bank [Member] | ||
Tier I capital to total average assets, Actual Amount | $ 118,251 | $ 105,556 |
Tier I capital to total average assets, Actual Percent | 12.05% | 11.91% |
Tier I capital to total average assets, Minimum capital adequacy Amount | $ 39,270 | $ 35,440 |
Tier I capital to total average assets, Minimum capital adequacy Percent | 4.00% | 4.00% |
Tier I capital to total average assets, Required to be Categorized Well Capitalized, Amount | $ 49,087 | $ 44,300 |
Tier I capital to total average assets, Required to be Categorized Well Capitalized, Percent | 5.00% | 5.00% |
CET1 capital to risk-weighted assets, Actual Amount | $ 118,251 | |
CET1 capital to risk-weighted assets, Actual Percent | 18.07% | |
CET1 capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Amount | $ 29,443 | |
CET1 capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Percent | 4.50% | |
CET1 capital to risk-weighted assets, Required to be Categorized Well Capitalized, Amount | $ 42,529 | |
CET1 capital to risk-weighted assets, Required to be Categorized Well Capitalized, Percent | 6.50% | |
Tier I capital to risk-weighted assets, Actual Amount | $ 118,251 | $ 105,556 |
Tier I capital to risk-weighted assets, Actual Percent | 18.07% | 19.89% |
Tier I capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Amount | $ 39,257 | $ 21,231 |
Tier I capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Percent | 6.00% | 4.00% |
Tier I capital to risk-weighted assets, Required to meet Memorandum of Understanding, Amount | $ 52,343 | $ 31,847 |
Tier I capital to risk-weighted assets, Required to meet Memorandum of Understanding, Percent | 8.00% | 6.00% |
Total Capital to risk-weighted assets, Actual Amount | $ 126,524 | $ 112,246 |
Total Capital to risk-weighted assets, Actual Percent | 19.34% | 21.15% |
Total Capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Amount | $ 52,343 | $ 42,462 |
Total Capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Percent | 8.00% | 8.00% |
Total Capital to risk-weighted assets, Required to be Categorized Well Capitalized, Amount | $ 65,429 | $ 53,078 |
Total Capital to risk-weighted assets, Required to be Categorized Well Capitalized, Percent | 10.00% | 10.00% |
Parent Company [Member] | ||
Tier I capital to total average assets, Actual Amount | $ 136,063 | $ 123,377 |
Tier I capital to total average assets, Actual Percent | 13.85% | 13.94% |
Tier I capital to total average assets, Minimum capital adequacy Amount | $ 39,291 | $ 35,398 |
Tier I capital to total average assets, Minimum capital adequacy Percent | 4.00% | 4.00% |
CET1 capital to risk-weighted assets, Actual Amount | $ 128,007 | |
CET1 capital to risk-weighted assets, Actual Percent | 19.55% | |
CET1 capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Amount | $ 29,468 | |
CET1 capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Percent | 4.50% | |
Tier I capital to risk-weighted assets, Actual Amount | $ 136,063 | $ 123,377 |
Tier I capital to risk-weighted assets, Actual Percent | 20.78% | 23.24% |
Tier I capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Amount | $ 39,291 | $ 21,236 |
Tier I capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Percent | 6.00% | 4.00% |
Total Capital to risk-weighted assets, Actual Amount | $ 144,343 | $ 130,067 |
Total Capital to risk-weighted assets, Actual Percent | 22.04% | 24.50% |
Total Capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Amount | $ 52,388 | $ 42,472 |
Total Capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Percent | 8.00% | 8.00% |
COMMITMENTS AND CONTINGENCIE110
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Other Commitments [Line Items] | |
Commitments to fund lines of credit | $ 74,496 |
Lines of credit [Member] | |
Other Commitments [Line Items] | |
Commitments to fund lines of credit | 73,747 |
Standby Letters of Credit [Member] | |
Other Commitments [Line Items] | |
Commitments to fund lines of credit | $ 749 |
COMMITMENTS AND CONTINGENCIE111
COMMITMENTS AND CONTINGENCIES (Details 2) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Fixed | $ 17,517 |
Variable | 22,172 |
Total | $ 39,689 |
Minimum [Member] | |
Fixed | 2.99% |
Variable | 2.74% |
Maximum [Member] | |
Fixed | 5.50% |
Variable | 6.25% |
COMMITMENTS AND CONTINGENCIE112
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Mortgage Loans Sold to Federal National Mortgage Association[Member] | ||
Loss Contingencies [Line Items] | ||
Obligation for representations and warranties, reserve | $ 300 | $ 300 |
Commitments to Extend Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Allowance for unfunded commitments | $ 100 | $ 100 |
FAIR VALUE DISCLOSURES (Details
FAIR VALUE DISCLOSURES (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | $ 245,966 | $ 222,107 |
Loan Servicing Rights[Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 2,344 | 2,187 |
Forward Sales Commitments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 16 | 9 |
Interest Rate Lock Commitments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 30 | 52 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 6,824 | 2,101 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 236,752 | 217,758 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 2,390 | 2,248 |
Fair Value, Inputs, Level 3 [Member] | Loan Servicing Rights[Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 2,344 | 2,187 |
Fair Value, Inputs, Level 3 [Member] | Forward Sales Commitments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 16 | 9 |
Fair Value, Inputs, Level 3 [Member] | Interest Rate Lock Commitments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 30 | 52 |
Trading account assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 4,714 | |
Trading account assets [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 4,714 | |
Available-for-sale Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 243,576 | 219,859 |
Available-for-sale Securities [Member] | Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 600 | 591 |
Available-for-sale Securities [Member] | Municipal Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 39,858 | 25,558 |
Available-for-sale Securities [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 171,174 | 152,718 |
Available-for-sale Securities [Member] | U.S. Treasury securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 1,510 | |
Available-for-sale Securities [Member] | U.S. Treasury securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 1,510 | |
Available-for-sale Securities [Member] | US Government Corporations and Agencies Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 25,720 | 39,482 |
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 6,824 | 2,101 |
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 600 | 591 |
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 1 [Member] | U.S. Treasury securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 1,510 | |
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 1 [Member] | U.S. Treasury securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 1,510 | |
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 236,752 | 217,758 |
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Municipal Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 39,858 | 25,558 |
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 171,174 | 152,718 |
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 2 [Member] | US Government Corporations and Agencies Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | $ 25,720 | $ 39,482 |
FAIR VALUE DISCLOSURES (Deta114
FAIR VALUE DISCLOSURES (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value Disclosures Details 2 | |||
Balance at beginning of period | $ 2,248 | $ 1,888 | $ 1,908 |
Capitalization from loans sold | 544 | 385 | 736 |
Fair value adjustment | (387) | (81) | (761) |
Mortgage derivative gains included in Other income | (15) | 56 | 5 |
Balance at end of period | $ 2,390 | $ 2,248 | $ 1,888 |
FAIR VALUE DISCLOSURES (Deta115
FAIR VALUE DISCLOSURES (Details 3) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets measured at fair value on nonrecurring basis | $ 17,629 | $ 29,066 |
Impaired loans measured at present value | 5,200 | 9,000 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets measured at fair value on nonrecurring basis | 17,629 | 29,066 |
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | One To Four Family Residential [Member] | ||
Assets measured at fair value on nonrecurring basis | 4,163 | 6,407 |
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Assets measured at fair value on nonrecurring basis | 7,226 | 14,551 |
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Home Equity Line of Credit [Member] | ||
Assets measured at fair value on nonrecurring basis | 213 | 1,456 |
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Other Portfolio Segment [Member] | ||
Assets measured at fair value on nonrecurring basis | 658 | 2,227 |
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member] | One To Four Family Residential [Member] | ||
Assets measured at fair value on nonrecurring basis | 4,163 | 6,407 |
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Assets measured at fair value on nonrecurring basis | 7,226 | 14,551 |
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member] | Home Equity Line of Credit [Member] | ||
Assets measured at fair value on nonrecurring basis | 213 | 1,456 |
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member] | Other Portfolio Segment [Member] | ||
Assets measured at fair value on nonrecurring basis | 658 | 2,227 |
Fair Value, Measurements, Nonrecurring [Member] | Real Estate Owned [Member] | One To Four Family Residential [Member] | ||
Assets measured at fair value on nonrecurring basis | 1,384 | 220 |
Fair Value, Measurements, Nonrecurring [Member] | Real Estate Owned [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Assets measured at fair value on nonrecurring basis | 1,123 | 774 |
Fair Value, Measurements, Nonrecurring [Member] | Real Estate Owned [Member] | Other Portfolio Segment [Member] | ||
Assets measured at fair value on nonrecurring basis | 2,862 | 3,431 |
Fair Value, Measurements, Nonrecurring [Member] | Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member] | One To Four Family Residential [Member] | ||
Assets measured at fair value on nonrecurring basis | 1,384 | 220 |
Fair Value, Measurements, Nonrecurring [Member] | Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Assets measured at fair value on nonrecurring basis | 1,123 | 774 |
Fair Value, Measurements, Nonrecurring [Member] | Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member] | Other Portfolio Segment [Member] | ||
Assets measured at fair value on nonrecurring basis | $ 2,862 | $ 3,431 |
FAIR VALUE DISCLOSURES (Deta116
FAIR VALUE DISCLOSURES (Details 4) | 12 Months Ended |
Dec. 31, 2015 | |
Impaired Loans [Member] | Discounted Appraised Value [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Unobservable Input | Collateral discounts and estimated selling cost |
Unobservable Input | Discounted Appraisals |
Impaired Loans [Member] | Discounted Appraised Value [Member] | Minimum [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Collateral discounts and estimated selling cost | 0.00% |
Impaired Loans [Member] | Discounted Appraised Value [Member] | Maximum [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Collateral discounts and estimated selling cost | 30.00% |
Real Estate Owned [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Unobservable Input | Collateral discounts and estimated selling cost |
Unobservable Input | Discounted Appraisals |
Real Estate Owned [Member] | Discounted Appraised Value [Member] | Minimum [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Collateral discounts and estimated selling cost | 0.00% |
Real Estate Owned [Member] | Discounted Appraised Value [Member] | Maximum [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Collateral discounts and estimated selling cost | 30.00% |
Loan Servicing Rights[Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Unobservable Input | Discounted Cash Flows |
Loan Servicing Rights[Member] | Discounted Cash Flow Method [Member] | Minimum [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Prepayment Speed | 7.00% |
Discount rate | 10.00% |
Loan Servicing Rights[Member] | Discounted Cash Flow Method [Member] | Maximum [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Prepayment Speed | 35.00% |
Discount rate | 16.00% |
Forward Sales Commitments [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Unobservable Input | Value of underlying loan |
Unobservable Input | Change in market price of underlying loan |
Forward Sales Commitments [Member] | Change in Market Price of Underling Loan [Member] | Minimum [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Value of underlying loan rate | 101.00% |
Forward Sales Commitments [Member] | Change in Market Price of Underling Loan [Member] | Maximum [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Value of underlying loan rate | 108.00% |
FAIR VALUE DISCLOSURES (Deta117
FAIR VALUE DISCLOSURES (Details 5) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Assets: | ||||
Cash and equivalents | $ 40,650 | $ 58,982 | $ 34,281 | $ 25,362 |
Trading securities | 4,714 | |||
Securities available for sale | 238,862 | $ 219,859 | ||
Securities held to maturity | 41,164 | 29,285 | ||
Other investments, at cost | 8,834 | 4,908 | ||
Interest receivable | 3,554 | 2,925 | ||
Bank owned life insurance | 20,858 | 20,417 | ||
Loan servicing rights | 2,344 | 2,187 | $ 1,883 | $ 1,908 |
Liabilities: | ||||
Time deposits | 276,142 | |||
Federal Home Loan Bank advances | 153,500 | 60,000 | ||
Junior subordinated debentures | 14,433 | 14,433 | ||
Accrued interest payable | 213 | 323 | ||
Reported Value Measurement [Member] | ||||
Assets: | ||||
Cash and equivalents | 40,650 | 58,982 | ||
Trading securities | 4,714 | |||
Securities available for sale | 238,862 | 219,859 | ||
Securities held to maturity | 41,164 | 29,285 | ||
Loans held for sale | 8,348 | 10,761 | ||
Loans receivable, net | 624,072 | 529,407 | ||
Other investments, at cost | 8,834 | 4,908 | ||
Interest receivable | 3,554 | 2,925 | ||
Bank owned life insurance | 20,858 | 20,417 | ||
Loan servicing rights | 2,344 | 2,187 | ||
Liabilities: | ||||
Demand deposits | 440,475 | 384,898 | ||
Time deposits | 276,142 | 318,219 | ||
Federal Home Loan Bank advances | 153,500 | 60,000 | ||
Junior subordinated debentures | 14,433 | 14,433 | ||
Accrued interest payable | 213 | 323 | ||
Reported Value Measurement [Member] | Forward Sales Commitments [Member] | ||||
Assets: | ||||
Commitments | 16 | 9 | ||
Reported Value Measurement [Member] | Interest Rate Lock Commitments [Member] | ||||
Assets: | ||||
Commitments | 30 | 52 | ||
Portion at Fair Value Measurement [Member] | ||||
Assets: | ||||
Cash and equivalents | 40,650 | 58,982 | ||
Trading securities | 4,714 | |||
Securities available for sale | 238,862 | 219,859 | ||
Securities held to maturity | 41,812 | 30,890 | ||
Loans held for sale | 8,952 | 11,501 | ||
Loans receivable, net | 620,516 | 546,450 | ||
Other investments, at cost | 8,834 | 4,908 | ||
Interest receivable | 3,554 | 2,925 | ||
Bank owned life insurance | 20,858 | 20,417 | ||
Loan servicing rights | 2,344 | 2,187 | ||
Liabilities: | ||||
Demand deposits | 440,475 | 384,898 | ||
Time deposits | 275,403 | 321,491 | ||
Federal Home Loan Bank advances | 153,441 | 62,108 | ||
Junior subordinated debentures | 14,433 | 14,433 | ||
Accrued interest payable | 213 | 323 | ||
Portion at Fair Value Measurement [Member] | Forward Sales Commitments [Member] | ||||
Assets: | ||||
Commitments | 16 | 9 | ||
Portion at Fair Value Measurement [Member] | Interest Rate Lock Commitments [Member] | ||||
Assets: | ||||
Commitments | 30 | 52 | ||
Fair Value, Inputs, Level 1 [Member] | Portion at Fair Value Measurement [Member] | ||||
Assets: | ||||
Cash and equivalents | 40,650 | 58,982 | ||
Trading securities | 4,714 | |||
Securities available for sale | 2,110 | $ 2,101 | ||
Securities held to maturity | $ 995 | |||
Loans held for sale | ||||
Loans receivable, net | ||||
Other investments, at cost | ||||
Interest receivable | ||||
Bank owned life insurance | ||||
Loan servicing rights | ||||
Liabilities: | ||||
Demand deposits | ||||
Time deposits | ||||
Federal Home Loan Bank advances | ||||
Junior subordinated debentures | ||||
Accrued interest payable | ||||
Fair Value, Inputs, Level 2 [Member] | Portion at Fair Value Measurement [Member] | ||||
Assets: | ||||
Cash and equivalents | ||||
Trading securities | ||||
Securities available for sale | $ 236,752 | $ 217,758 | ||
Securities held to maturity | 40,817 | 30,890 | ||
Loans held for sale | $ 8,952 | $ 11,501 | ||
Loans receivable, net | ||||
Other investments, at cost | $ 8,834 | $ 4,908 | ||
Interest receivable | 3,554 | 2,925 | ||
Bank owned life insurance | $ 20,858 | $ 20,417 | ||
Loan servicing rights | ||||
Liabilities: | ||||
Demand deposits | $ 440,475 | $ 384,898 | ||
Time deposits | ||||
Federal Home Loan Bank advances | $ 153,441 | $ 62,108 | ||
Junior subordinated debentures | 14,433 | 14,433 | ||
Accrued interest payable | $ 213 | $ 323 | ||
Fair Value, Inputs, Level 3 [Member] | Portion at Fair Value Measurement [Member] | ||||
Assets: | ||||
Cash and equivalents | ||||
Trading securities | ||||
Securities available for sale | ||||
Securities held to maturity | ||||
Loans held for sale | ||||
Loans receivable, net | $ 620,516 | $ 546,450 | ||
Other investments, at cost | ||||
Interest receivable | ||||
Bank owned life insurance | ||||
Loan servicing rights | $ 2,344 | $ 2,187 | ||
Liabilities: | ||||
Demand deposits | ||||
Time deposits | $ 275,403 | $ 321,491 | ||
Federal Home Loan Bank advances | ||||
Junior subordinated debentures | ||||
Accrued interest payable | ||||
Fair Value, Inputs, Level 3 [Member] | Portion at Fair Value Measurement [Member] | Forward Sales Commitments [Member] | ||||
Assets: | ||||
Commitments | $ 16 | $ 9 | ||
Fair Value, Inputs, Level 3 [Member] | Portion at Fair Value Measurement [Member] | Interest Rate Lock Commitments [Member] | ||||
Assets: | ||||
Commitments | $ 30 | $ 52 |
PARENT COMPANY FINANCIAL INF118
PARENT COMPANY FINANCIAL INFORMATION - Condensed Statements of Financial Condition (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Assets: | ||||
Cash and cash equivalents | $ 40,650 | $ 58,982 | $ 34,281 | $ 25,362 |
Other assets | 4,304 | 2,910 | ||
Total assets | 1,031,416 | 903,648 | ||
Liabilities and stockholders' equity: | ||||
Junior subordinated notes | 14,433 | 14,433 | ||
Other liabilities | 2,762 | 8,697 | ||
Stockholders equity | 131,469 | 107,319 | $ 32,518 | $ 42,294 |
Total liabilities and stockholders' equity | 1,031,416 | 903,648 | ||
Parent Company [Member] | ||||
Assets: | ||||
Cash and cash equivalents | 17,545 | 17,652 | ||
Equity investment in subsidiary | 128,090 | 103,498 | ||
Equity investment in trust | 433 | 433 | ||
Other assets | 188 | 169 | ||
Total assets | 146,256 | 121,752 | ||
Liabilities and stockholders' equity: | ||||
Junior subordinated notes | 14,433 | $ 14,433 | ||
Other liabilities | 354 | |||
Stockholders equity | 131,469 | $ 107,319 | ||
Total liabilities and stockholders' equity | $ 146,256 | $ 121,752 |
PARENT COMPANY FINANCIAL INF119
PARENT COMPANY FINANCIAL INFORMATION - Condensed Statements of Operations (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Total income | $ 33,144 | $ 32,445 | $ 31,451 |
Interest expense | 5,723 | 6,573 | 6,988 |
Loss before income taxes and equity in undistributed income of subsidiary | 7,086 | 8,151 | 60 |
Income tax benefit allocated from consolidated income tax return | (16,739) | 2,208 | 475 |
Net income (loss) | 23,825 | 5,943 | $ (415) |
Parent Company [Member] | |||
Interest income | 190 | $ 78 | |
Dividends from subsidiary | 114 | ||
Total income | 304 | $ 78 | |
Interest expense | 458 | 509 | $ 490 |
Other | 259 | 29 | 38 |
Total expenses | 717 | 538 | 528 |
Loss before income taxes and equity in undistributed income of subsidiary | (413) | (460) | (528) |
Income tax benefit allocated from consolidated income tax return | 180 | 180 | 172 |
Loss before equity in undistributed income (loss) of subsidiary | (233) | (280) | (356) |
Equity in undistributed income (loss) of subsidiary | 24,058 | 6,223 | (59) |
Net income (loss) | $ 23,825 | $ 5,943 | $ (415) |
PARENT COMPANY FINANCIAL INF120
PARENT COMPANY FINANCIAL INFORMATION - Condensed Statements of Cash Flows (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 23,825 | $ 5,943 | $ (415) |
Investing activities: | |||
Net cash used in investing activities | (94,967) | (81,283) | $ (20,619) |
Cash flows from financing activities: | |||
Proceeds from sale of common stock | 63,651 | ||
Net cash provided by (used in) financing activities | 66,826 | 102,542 | $ 24,106 |
Increase in cash and cash equivalents | (18,332) | 24,701 | 8,919 |
Parent Company [Member] | |||
Cash flows from operating activities: | |||
Net income | 23,825 | 5,943 | (415) |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in undistributed earnings in subsidiaries | (24,058) | (6,223) | 59 |
(Increase) decrease in other assets | (19) | (46) | 6 |
Increase (decrease) in other liabilities | 75 | (1,567) | 484 |
Net cash provided by (used in) operating activities | $ (177) | (1,893) | $ 134 |
Investing activities: | |||
Investment in subsidiary | (44,581) | ||
Net cash used in investing activities | (44,581) | ||
Cash flows from financing activities: | |||
Proceeds from sale of common stock | $ 63,651 | ||
Proceeds from bank subsidiary for share-based compensation | $ (70) | ||
Net cash provided by (used in) financing activities | (70) | $ 63,651 | |
Increase in cash and cash equivalents | (107) | 17,177 | $ 134 |
Cash and cash equivalents, beginning of year | 17,652 | 475 | 341 |
Cash and cash equivalents, end of year | $ 17,545 | $ 17,652 | $ 475 |