Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 08, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | ENTEGRA FINANCIAL CORP. | |
Entity Central Index Key | 1,522,327 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
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 Common Stock, Shares Outstanding | 6,441,807 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,016 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and due from banks | $ 11,674 | $ 8,421 |
Interest-earning deposits | 50,355 | 32,229 |
Cash and cash equivalents | 62,029 | 40,650 |
Investments - trading | 5,133 | 4,714 |
Investments - available for sale | 322,710 | 238,862 |
Investments - held to maturity (fair value of $41,812 at December 31, 2015) | 41,164 | |
Other investments, at cost | 11,436 | 8,834 |
Loans held for sale | 8,428 | 8,348 |
Loans receivable | 727,403 | 624,072 |
Allowance for loan losses | (9,104) | (9,461) |
Fixed assets, net | 20,442 | 17,673 |
Real estate owned | 4,624 | 5,369 |
Interest receivable | 4,309 | 3,554 |
Bank owned life insurance | 31,169 | 20,858 |
Net deferred tax asset | 15,375 | 18,830 |
Loan servicing rights | 2,426 | 2,344 |
Goodwill | 2,055 | 711 |
Core deposit intangible | 1,019 | 590 |
Other assets | 8,918 | 4,304 |
Total assets | 1,218,372 | 1,031,416 |
Liabilities: | ||
Deposits | 837,278 | 716,617 |
Federal Home Loan Bank advances | 208,500 | 153,500 |
Junior subordinated notes | 14,433 | 14,433 |
Other borrowings | 2,620 | 2,198 |
Post employment benefits | 10,249 | 10,224 |
Accrued interest payable | 244 | 213 |
Other liabilities | 6,844 | 2,762 |
Total liabilities | 1,080,168 | 899,947 |
Commitments and contingencies (Note 13) | ||
Shareholders' 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; 6,466,375 and 6,546,375 shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively | ||
Common stock held by Rabbi Trust, at cost; 14,000 shares at September 30, 2016 and December 31, 2015 | (279) | (279) |
Additional paid in capital | 62,987 | 63,722 |
Retained earnings | 73,786 | 69,762 |
Accumulated other comprehensive gain (loss) | 1,710 | (1,736) |
Total shareholders equity | 138,204 | 131,469 |
Total liabilities and shareholders equity | $ 1,218,372 | $ 1,031,416 |
CONSOLIDATED BALANCE SHEETS (U3
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Investment - held to maturity at fair value | $ 41,812 | |
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 | 6,466,375 | 6,546,375 |
Common stock, shares outstanding | 6,466,375 | 6,546,375 |
Common Stock held by Rabbi Trust | 14,000 | 14,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Interest income: | ||||
Interest and fees on loans | $ 8,424 | $ 6,824 | $ 23,885 | $ 19,941 |
Interest on tax exempt loans | 99 | 40 | 242 | 98 |
Taxable securities | 1,294 | 1,345 | 4,174 | 3,859 |
Tax-exempt securities | 432 | 104 | 881 | 258 |
Interest-earning deposits | 62 | 13 | 152 | 59 |
Other | 133 | 75 | 360 | 182 |
Total interest and dividend income | 10,444 | 8,401 | 29,694 | 24,397 |
Interest expense: | ||||
Deposits | 1,007 | 1,014 | 2,981 | 3,372 |
Federal Home Loan Bank advances | 371 | 203 | 965 | 591 |
Junior subordinated notes | 140 | 115 | 394 | 342 |
Other borrowings | 29 | 28 | 85 | 80 |
Total interest expense | 1,547 | 1,360 | 4,425 | 4,385 |
Net interest income | 8,897 | 7,041 | 25,269 | 20,012 |
Provision for loan losses | 100 | 100 | (1,500) | |
Net interest income after provision for loan losses | 8,797 | 7,041 | 25,169 | 21,512 |
Noninterest income: | ||||
Servicing income, net | 72 | 128 | 263 | 233 |
Mortgage banking | 387 | 284 | 747 | 624 |
Gain on sale of SBA loans | 124 | 467 | 742 | 681 |
Gain on sale of investments, net | 407 | 35 | 1,105 | 322 |
Service charges on deposit accounts | 370 | 291 | 1,151 | 906 |
Interchange fees | 385 | 339 | 1,109 | 939 |
Bank owned life insurance | 110 | 115 | 311 | 343 |
Other | 211 | 164 | 612 | 368 |
Total noninterest income | 2,066 | 1,823 | 6,040 | 4,416 |
Noninterest expenses: | ||||
Compensation and employee benefits | 4,471 | 3,527 | 12,738 | 11,007 |
Net occupancy | 929 | 734 | 2,580 | 2,167 |
Federal Home Loan Bank prepayment penalty | 1,762 | |||
Marketing and advertising | 309 | 130 | 811 | 367 |
Federal deposit insurance | 108 | 179 | 468 | 742 |
Professional and advisory | 208 | 275 | 713 | 786 |
Data processing | 406 | 310 | 1,157 | 872 |
Merger-related expenses | 107 | 20 | 2,023 | 20 |
Net cost of operation of real estate owned | 167 | 171 | 663 | 503 |
Other | 1,137 | 868 | 3,281 | 2,711 |
Total noninterest expenses | 7,842 | 6,214 | 24,434 | 20,937 |
Income before taxes | 3,021 | 2,650 | 6,775 | 4,991 |
Income tax expense (benefit) | 1,221 | 485 | 2,751 | (16,894) |
Net income | $ 1,800 | $ 2,165 | $ 4,024 | $ 21,885 |
Earnings per common share: | ||||
Basic | $ 0.28 | $ 0.33 | $ 0.62 | $ 3.34 |
Diluted | $ 0.28 | $ 0.33 | $ 0.62 | $ 3.34 |
Weighted average common shares outstanding: | ||||
Basic | 6,466,375 | 6,546,375 | 6,483,535 | 6,546,375 |
Diluted | 6,484,226 | 6,546,375 | 6,500,198 | 6,546,375 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,800 | $ 2,165 | $ 4,024 | $ 21,885 |
Other comprehensive income (loss): | ||||
Change in unrealized holding gains and losses on securities available for sale | (1,390) | 2,172 | 5,115 | 2,020 |
Reclassification adjustment for securities gains realized in net income | (407) | (35) | (1,105) | (322) |
Amortization of unrealized loss on securities transferred to held to maturity | 324 | 163 | 894 | 705 |
Change in deferred tax valuation allowance attributable to unrealized gains and losses on investment securities available for sale | 33 | 95 | 328 | 149 |
Change in unrealized holding gains and losses on cash flow hedge | 95 | 50 | ||
Other comprehensive income (loss), before tax | (1,345) | 2,395 | 5,282 | 2,552 |
Income tax effect related to items of other comprehensive income | 548 | (867) | (1,836) | (921) |
Other comprehensive income (loss), after tax | (797) | 1,528 | 3,446 | 1,631 |
Comprehensive income | $ 1,003 | $ 3,693 | $ 7,470 | $ 23,516 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - 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, 2014 | $ 63,651 | $ 45,937 | $ (2,269) | $ 107,319 | ||
Beginning Balance (in shares) at Dec. 31, 2014 | 6,546,375 | |||||
Net income | 21,885 | 21,885 | ||||
Other comprehensive income, net of tax | 1,631 | 1,631 | ||||
Repurchase of common stock | ||||||
Ending Balance at Sep. 30, 2015 | 63,651 | 67,822 | (638) | 130,835 | ||
Ending Balance (in shares) at Sep. 30, 2015 | 6,546,375 | |||||
Beginning Balance at Dec. 31, 2015 | 63,722 | 69,762 | (1,736) | (279) | 131,469 | |
Beginning Balance (in shares) at Dec. 31, 2015 | 6,546,375 | |||||
Net income | 4,024 | 4,024 | ||||
Other comprehensive income, net of tax | 3,446 | 3,446 | ||||
Stock compensation expense | 655 | 655 | ||||
Repurchase of common stock | (1,390) | (1,390) | ||||
Repurchase of common stock (in shares) | (80,000) | |||||
Ending Balance at Sep. 30, 2016 | $ 62,987 | $ 73,786 | $ 1,710 | $ (279) | $ 138,204 | |
Ending Balance (in shares) at Sep. 30, 2016 | 6,466,375 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 4,024 | $ 21,885 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and leasehold amortization | 918 | 744 |
Security amortization, net | 1,485 | 1,536 |
Trading account income | (271) | |
Provision for loan losses | 100 | (1,500) |
Provision for real estate owned | 575 | 250 |
Amortization of core deposit intangible | 101 | |
Share-based compensation | 655 | |
Deferred income tax expense (benefit) | 2,250 | (16,744) |
Net decrease in deferred loan fees | (189) | (182) |
Gain on sales of securities available for sale | (1,105) | (322) |
Other than temporary impairment on cost method investment | 3 | |
Income on bank owned life insurance, net | (311) | (331) |
Mortgage banking income, net | (747) | (624) |
Gain on sale of SBA loans | (742) | (681) |
Net realized gain on sale of real estate owned | (182) | (67) |
Loans originated for sale | (38,402) | (23,229) |
Proceeds from sale of loans originated for sale | 39,811 | 30,524 |
Net change in operating assets and liabilities: | ||
Interest receivable | (203) | (441) |
Loan servicing rights | (82) | (131) |
Other assets | 102 | (938) |
Postemployment benefits | 25 | 317 |
Accrued interest payable | 1 | (118) |
Other liabilities | 2,187 | 1,324 |
Net cash provided by operating activities | 10,000 | 11,275 |
Activity for investment securities: | ||
Purchases | (152,034) | (98,117) |
Maturities/calls and principal repayments | 28,514 | 46,492 |
Sales | 115,328 | 33,848 |
Net increase in loans | (40,859) | (40,579) |
Purchased loans | (22,394) | |
Proceeds from sale of real estate owned | 1,973 | 1,213 |
Real estate owned capitalized costs | (51) | |
Purchase of fixed assets | (295) | (2,984) |
Purchase of bank owned life insurance | (10,000) | |
Disposal of real estate held for investment | 2,430 | |
Purchase of other investments, at cost | (2,048) | (3,311) |
Redemptions of other investments, at cost | 150 | |
Net cash paid in business combination | (5,912) | |
Net cash used in investing activities | (65,333) | (83,303) |
Cash flows from financing activities: | ||
Net increase (decrease) in deposits | 30,880 | (20,947) |
Net increase in escrow deposits | 1,247 | 903 |
Proceeds from FHLB advances | 55,000 | 170,600 |
Repayment of FHLB advances | (9,025) | (95,100) |
Repurchase of common stock | (1,390) | |
Net cash provided by financing activities | 76,712 | 55,456 |
Increase (decrease) in cash and cash equivalents | 21,379 | (16,572) |
Cash and cash equivalents, beginning of period | 40,650 | 58,982 |
Cash and cash equivalents, end of period | 62,029 | 42,410 |
Cash paid during the year for: | ||
Interest on deposits and other borrowings | 4,597 | 4,503 |
Acquisitions | ||
Assets acquired | 110,020 | |
Liabilities assumed | 97,878 | |
Net assets | 12,142 | |
Noncash investing and financing activities: | ||
Real estate acquired in satisfaction of mortgage loans | 698 | 3,030 |
Loans originated for disposition of real estate owned | 810 | |
Purchased loans and investments to be settled | 257 | 4,913 |
Transfer held to maturity investment securities to available for sale investments securities | $ 30,368 |
ORGANIZATION
ORGANIZATION | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | NOTE 1. ORGANIZATION AND BASIS OF PRESENTATION 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 Bancorp’s merger with and into the Company, pursuant to which Macon Bancorp converted from the mutual to stock form of organization. The Company’s 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 was inactive as of September 30, 2016. 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. Estimates The preparation of consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those 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 The accompanying consolidated financial statements include the accounts of the Company, the Bank, and its wholly owned subsidiary. The accounts of the Trust are not consolidated with the Company. In consolidation all significant intercompany accounts and transactions have been eliminated. Reclassification Certain amounts in the prior years’ financial statements may have been reclassified to conform to the current year’s presentation. The reclassifications had no significant effect on our results of operations or financial condition as previously reported. Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with our Annual Report on Form 10-K, filed with the SEC on March 15, 2016. In the opinion of management, these interim financial statements present fairly, in all material respects, the Company’s consolidated financial position and results of operations for each of the interim periods presented. Results of operations for interim periods are not necessarily indicative of the results of operations that may be expected for a full year or any future period. Acquisition Activities The Company accounts for business combinations under the acquisition method of accounting. Assets acquired and liabilities assumed are measured and recorded at fair value at the date of acquisition, including identifiable intangible assets. If the fair value of net assets purchased exceeds the fair value of consideration paid, a bargain purchase gain is recognized at the date of acquisition. Conversely, if the consideration paid exceeds the fair value of the net assets acquired, goodwill is recognized at the acquisition date. Fair values are subject to refinement for a period not to exceed one year after the closing date of an acquisition as information relative to closing date fair values becomes available. The determination of the fair value of loans acquired takes into account credit quality deterioration and probability of loss; therefore, the related allowance for loan losses is not carried forward. All identifiable intangible assets that are acquired in a business combination are recognized at fair value on the acquisition date. Identifiable intangible assets are recognized separately if they arise from contractual or other legal rights or if they are separable (i.e., capable of being sold, transferred, licensed, rented, or exchanged separately from the entity). Deposit liabilities and the related depositor relationship intangible assets may be exchanged in observable exchange transactions. As a result, the depositor relationship intangible asset is considered identifiable, because the separability criterion has been met. Subsequent Events Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet including the estimates inherent in the process of preparing financial statements. Unrecognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. The Company has reviewed events occurring through the issuance date of the Consolidated Financial Statements and no subsequent events have occurred requiring accrual or disclosure in these financial statements other than as described in Footnote 16. Recent Accounting Standards Updates In January 2016, the Financial Accounting Standards Board (“FASB”) amended the Financial Instruments In March 2016, the FASB amended the Revenue from Contracts with Customers In March 2016, the FASB issued guidance to simplify several aspects of the accounting for share-based payment award transactions including the income tax consequences, the classification of awards as either equity or liabilities, and the classification on the statement of cash flows. Additionally, the guidance simplifies two areas specific to entities other than public business entities allowing them to apply a practical expedient to estimate the expected term for all awards with performance or service conditions that have certain characteristics and also allowing them to make a one-time election to switch from measuring all liability-classified awards at fair value to measuring them at intrinsic value. The amendments will be effective for the Company for annual periods beginning after December 15, 2016 and interim periods within those annual periods. The Company does not expect these amendments to have a material effect on its financial statements. In June 2016, the FASB issued amendments to Accounting Standards Update (“ASU”) 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. In August 2016, the FASB issued ASU No. 2016-15 , “Classification of Certain Cash Receipts and Cash Payments.” 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 Company’s financial position, results of operations or cash flows. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 9 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | NOTE 2. INVESTMENT SECURITIES The Company’s held-to-maturity investment portfolio was transferred to available for sale during the third quarter of 2016 in order to provide the Company more flexibility managing its investment portfolio. As a result of the transfer, the Company is prohibited from classifying any investment securities as held to maturity for two years from the date of the transfer. The amortized cost and estimated fair values of securities available for sale as of September 30, 2016 and December 31, 2015 are summarized as follows: September 30, 2016 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. government agencies $ 12,088 $ 85 $ — $ 12,173 Municipal securities 124,939 2,110 (227 ) 126,822 Mortgage-backed securities 163,745 1,500 (585 ) 164,660 U.S. Treasury securities 2,501 49 — 2,550 Corporate debt securities 15,766 152 (32 ) 15,886 Mutual funds 612 7 — 619 $ 319,651 $ 3,903 $ (844 ) $ 322,710 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 The amortized cost and estimated fair values of securities held to maturity (“HTM”) as of December 31, 2015 is 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 Information pertaining to the activity for the three and nine month periods ended September 30, 2016 and 2015 of unrealized losses related to HTM securities (before the impact of income taxes) previously recognized in accumulated other comprehensive income (“AOCI”) is summarized below: For the Three Months Ended For the Nine Months Ended September 30 September 30 (Dollars in thousands) 2016 2015 2016 2015 Beginning unrealized loss related to HTM securities previously recognized in AOCI $ 333 $ 1,345 $ 903 $ 1,887 Amortization of unrealized losses on HTM securities previously recognized in AOCI (8 ) (163 ) (578 ) (705 ) Reduction from transfers to AFS (325 ) — (325 ) — Ending unrealized loss in AOCI related to HTM securities previously recognized in AOCI $ — $ 1,182 $ — $ 1,182 The increase in amortization during the three months ended September 30, 2016 was due to transfer of HTM securities to AFS. Information pertaining to securities with gross unrealized losses at September 30, 2016 and December 31, 2015, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: September 30, 2016 Less Than 12 Months More Than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (Dollars in thousands) Available for Sale: Municipal securities $ 16,075 $ 217 $ 985 $ 10 $ 17,060 $ 227 Mortgage-backed securities 52,271 413 14,315 172 66,586 585 Corporate debt securities 4,565 32 — — 4,565 32 $ 72,911 $ 662 $ 15,300 $ 182 $ 88,211 $ 844 December 31, 2015 Less Than 12 Months More Than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized 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 Information pertaining to the number of securities with unrealized losses is detailed in the table below. The Company believes all unrealized losses as of September 30, 2016 and December 31, 2015 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. September 30, 2016 Less Than 12 Months More Than 12 Months Total Municipal securities 13 2 15 Mortgage-backed securities 29 12 41 Corporate debt securities 5 — 5 47 14 61 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 For the three and nine months ended September 30, 2016 and 2015 the Company had proceeds from sales of securities available for sale and their corresponding gross realized gains and losses as detailed below: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (Dollars in thousands) Gross proceeds $ 39,619 $ 7,941 $ 115,328 $ 33,848 Gross realized gains 407 35 1,139 342 Gross realized losses — — 34 20 The Company had securities pledged against deposits and borrowings of approximately $138.7 million and $69.6 million at September 30, 2016 and December 31, 2015, respectively. The amortized cost and estimated fair value of investments in debt securities at September 30, 2016, 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 $ 3,889 $ 3,904 Over 1 year through 5 years 18,034 18,286 After 5 years through 10 years 29,095 29,458 Over 10 years 104,888 106,402 155,906 158,050 Mortgage-backed securities 163,745 164,660 Total $ 319,651 $ 322,710 |
ACQUISITION ACTIVITIES
ACQUISITION ACTIVITIES | 9 Months Ended |
Sep. 30, 2016 | |
Acquisition Activities | |
ACQUISITION ACTIVITIES | NOTE 3. ACQUISITION ACTIVITIES The Company has determined that the acquisition described below constitutes a business combination as defined in ASC Topic 805, Business Combinations Fair Value Measurements On April 1, 2016, the Bank acquired Old Town Bank of Waynesville, North Carolina. In connection with the acquisition, the Bank acquired $110.0 million of assets and assumed $97.9 million of liabilities. Total consideration transferred was $13.5 million of cash. The fair value of consideration paid exceeded the fair value of the identifiable assets and liabilities acquired and resulted in the establishment of goodwill in the amount of $1.3 million, none of which is deductible for tax purposes. Loans purchased with evidence of credit impairment were not material. The purchased assets and assumed liabilities were recorded at their acquisition date fair values, and are summarized in the table below ( in thousands. As recorded by Fair Value As recorded by Old Town Bank Adjustments (1) the Company Assets Cash and cash equivalents $ 7,573 $ — $ 7,573 Investments 30,882 246 31,128 Loans 64,573 272 64,845 Fixed assets 3,414 (22 ) 3,392 Interest receivable 552 — 552 Core deposit intangible — 530 530 Other real estate owned 880 43 923 Deferred tax asset 259 186 445 Other assets 938 (306 ) 632 Total assets acquired $ 109,071 $ 949 $ 110,020 Liabilities Deposits $ 88,059 $ 648 $ 88,707 FHLB advances 9,000 25 9,025 Accrued Interest payable 30 — 30 Other liabilities 125 (9 ) 116 Total liabilities assumed 97,214 664 97,878 Excess of assets acquired over liabities assumed $ 11,857 $ 285 $ 12,142 Purchase price 13,486 Goodwill $ 1,344 (1) Fair values are subject to refinement for a period not to exceed one year after the closing date of an acquisition as information relative to closing date fair values becomes available. In particular, the fair value of collateral dependent loans and other real estate owned may change to the extent that the Company receives updated appraisals indicating changes in valuation assumptions at acquisition. |
LOANS RECEIVABLE
LOANS RECEIVABLE | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
LOANS RECEIVABLE | NOTE 4. LOANS RECEIVABLE Loans receivable as of September 30, 2016 and December 31, 2015 are summarized as follows: September 30, 2016 December 31, 2015 (Dollars in thousands) Real estate mortgage loans: One-to four-family residential $ 271,358 $ 248,633 Commercial real estate 283,521 214,413 Home equity loans and lines of credit 50,844 53,446 Residential construction 16,962 7,848 Other construction and land 59,136 57,316 Total real estate loans 681,821 581,656 Commercial and industrial 43,397 41,046 Consumer 4,382 3,639 Total commercial and consumer 47,779 44,685 Loans receivable, gross 729,600 626,341 Less: Net deferred loan fees (805 ) (1,388 ) Unamortized premium 707 557 Unamortized discount (2,099 ) (1,438 ) Loans receivable, net $ 727,403 $ 624,072 The Bank had $130.1 million and $119.5 million of loans pledged as collateral to secure funding with the Federal Home Loan Bank of Atlanta (“FHLB”) at September 30, 2016 and December 31, 2015, respectively. The Bank also had $86.9 million and $88.4 million of loans pledged as collateral to secure funding with the Federal Reserve Bank (“FRB”) Discount Window at September 30, 2016 and December 31, 2015, respectively. Included in loans receivable and other borrowings at September 30, 2016 are $2.6 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 tables present the activity related to the discount on purchased loans for the three and nine month periods ended September 30, 2016 and 2015: For the Three Months Ended For the Nine Months Ended September 30, September 30, (Dollars in thousands) 2016 2015 2016 2015 Discount on purchased loans, beginning of period $ 2,295 $ 1,499 $ 1,438 $ 1,487 Additional discount for new purchases — — 1,092 484 Accretion (196 ) (73 ) (431 ) (250 ) Discount applied to charge-offs — — — (295 ) Discount on purchased loans, end of period $ 2,099 $ 1,426 $ 2,099 $ 1,426 |
ALLOWANCE FOR LOAN LOSSES
ALLOWANCE FOR LOAN LOSSES | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
ALLOWANCE FOR LOAN LOSSES | NOTE 5. ALLOWANCE FOR LOAN LOSSES The following tables present, by portfolio segment, the changes in the allowance for loan losses: Three Months Ended September 30, 2016 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 $ 2,679 $ 3,379 $ 887 $ 175 $ 1,064 $ 530 $ 226 $ 8,940 Provision (376 ) 494 (137 ) (60 ) (95 ) 79 195 100 Charge-offs (19 ) — (28 ) — (44 ) (52 ) (146 ) (289 ) Recoveries 27 170 44 — 28 13 71 353 Ending balance $ 2,311 $ 4,043 $ 766 $ 115 $ 953 $ 570 $ 346 $ 9,104 Three Months Ended September 30, 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 $ 2,260 $ 2,607 $ 1,080 $ 344 $ 1,666 $ 680 $ 814 $ 9,451 Provision 272 325 37 (105 ) (292 ) (213 ) (24 ) — Charge-offs (13 ) — (22 ) — (28 ) — (16 ) (79 ) Recoveries 108 — 1 1 50 19 82 261 Ending balance $ 2,627 $ 2,932 $ 1,096 $ 240 $ 1,396 $ 486 $ 856 $ 9,633 Nine Months Ended September 30, 2016 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 $ 2,455 $ 3,221 $ 1,097 $ 278 $ 1,400 $ 603 $ 407 $ 9,461 Provision (83 ) 1,081 (351 ) (195 ) (78 ) (106 ) (168 ) 100 Charge-offs (117 ) (431 ) (158 ) — (481 ) (62 ) (172 ) (1,421 ) Recoveries 56 172 178 32 112 135 279 964 Ending balance $ 2,311 $ 4,043 $ 766 $ 115 $ 953 $ 570 $ 346 $ 9,104 Nine Months Ended September 30, 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 (335 ) 93 128 (273 ) (1,642 ) 150 379 (1,500 ) Charge-offs (251 ) (45 ) (391 ) — (114 ) (1 ) (36 ) (838 ) Recoveries 230 167 26 3 216 29 228 899 Ending balance $ 2,627 $ 2,932 $ 1,096 $ 240 $ 1,396 $ 486 $ 856 $ 9,633 The following tables present, by portfolio segment and reserving methodology, the allocation of the allowance for loan losses and the gross investment in loans: September 30, 2016 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 $ 219 $ 99 $ 4 $ — $ 164 $ 28 $ — $ 514 Collectively evaluated for impairment 2,092 3,945 762 115 789 541 346 8,590 $ 2,311 $ 4,044 $ 766 $ 115 $ 953 $ 569 $ 346 $ 9,104 Loans Receivable Individually evaluated for impairment $ 3,838 $ 9,098 $ 313 $ — $ 1,737 $ 307 $ — $ 15,293 Collectively evaluated for impairment 267,520 274,423 50,531 16,962 57,399 43,090 4,382 714,307 $ 271,358 $ 283,521 $ 50,844 $ 16,962 $ 59,136 $ 43,397 $ 4,382 $ 729,600 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 Portfolio Quality Indicators The Company’s portfolio grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled. The Company’s 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 Company’s 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 is 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 customer’s 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 collateral’s current market value. Non-commercial construction and land development loans can experience delays in completion and/or cost overruns that exceed the borrower’s financial ability to complete the project. Cost overruns can result in foreclosure of partially completed collateral with unrealized value and diminished marketability. Commercial construction and land development loans are dependent on the supply and demand for commercial real estate in the markets we serve as well as the demand for newly constructed residential homes and building lots. Deterioration in demand could result in significant decreases in the underlying collateral values and make repayment of the outstanding loans more difficult for our customers. Commercial We centrally underwrite each of our commercial loans based primarily upon the customer’s 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 borrower’s 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: September 30, 2016 Loan Grade One-to Four- Commercial Home Equity Residential Other Commercial Consumer Total (Dollars in thousands) 1 $ — $ 9,409 $ — $ — $ — $ 1,738 $ — $ 11,147 2 — 4,327 — — — 1,476 — 5,803 3 28,434 22,512 1,593 524 1,542 2,703 — 57,308 4 73,505 131,459 3,569 10,271 20,998 25,384 52 265,238 5 26,155 93,023 3,615 2,051 18,260 11,221 333 154,658 6 2,695 12,981 — 170 2,467 269 — 18,582 7 1,730 8,263 — — 1,313 452 — 11,758 $ 132,519 $ 281,974 $ 8,777 $ 13,016 $ 44,580 $ 43,243 $ 385 $ 524,494 Ungraded Loan Exposure: Performing $ 137,779 $ 1,547 $ 41,951 $ 3,730 $ 14,502 $ 154 $ 3,997 $ 203,660 Nonperforming 1,060 — 116 216 54 — — 1,446 Subtotal $ 138,839 $ 1,547 $ 42,067 $ 3,946 $ 14,556 $ 154 $ 3,997 $ 205,106 Total $ 271,358 $ 283,521 $ 50,844 $ 16,962 $ 59,136 $ 43,397 $ 4,382 $ 729,600 December 31, 2015 Loan Grade One-to Four- Commercial Home Equity Residential Other 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 Delinquency Analysis of Loans by Class The following tables include an aging analysis of the recorded investment in gross loans of past-due financing receivables by class. The Company does not accrue interest on loans greater than 90 days past due. September 30, 2016 30-59 Days Past 60-89 Days Past 90 Days and Over Total Past Due Current Total Loans (Dollars in thousands) One-to four-family residential $ 4,865 $ 379 $ 510 $ 5,754 $ 265,604 $ 271,358 Commercial real estate 3,088 128 2,293 5,509 278,012 283,521 Home equity and lines of credit 240 25 116 381 50,463 50,844 Residential construction — 171 216 387 16,575 16,962 Other construction and land 156 — 905 1,061 58,075 59,136 Commercial 125 16 — 141 43,256 43,397 Consumer 5 1 — 6 4,376 4,382 Total $ 8,479 $ 720 $ 4,040 $ 13,239 $ 716,361 $ 729,600 December 31, 2015 30-59 Days Past 60-89 Days Past 90 Days and Over Past Total Past Due Current Total Loans (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 Impaired Loans The following table presents investments in loans considered to be impaired and related information on those impaired loans as of September 30, 2016 and December 31, 2015. September 30, 2016 December 31, 2015 Recorded Balance Unpaid Principal Specific Recorded Balance Unpaid Principal Specific (Dollars in thousands) Loans without a valuation allowance One-to four-family residential $ 2,337 $ 2,391 $ — $ 4,289 $ 4,403 $ — Commercial real estate 7,348 8,979 — 7,226 8,809 — Home equity and lines of credit 213 328 — 213 328 — Residential construction — — — — — — Other construction and land 815 917 — 658 818 — Commercial — — — — — — $ 10,713 $ 12,615 $ — $ 12,386 $ 14,358 $ — Loans with a valuation allowance One-to four-family residential $ 1,500 $ 1,500 $ 219 $ 2,026 $ 2,026 $ 344 Commercial real estate 1,751 1,751 99 1,787 1,787 61 Home equity and lines of credit 100 100 4 100 100 6 Residential construction — — — — — — Other construction and land 922 1,017 164 851 851 61 Commercial 307 307 28 318 318 38 $ 4,580 $ 4,675 $ 514 $ 5,082 $ 5,082 $ 510 Total One-to four-family residential $ 3,837 $ 3,891 $ 219 $ 6,315 $ 6,429 $ 344 Commercial real estate 9,099 10,730 99 9,013 10,596 61 Home equity and lines of credit 313 428 4 313 428 6 Residential construction — — — — — — Other construction and land 1,737 1,934 164 1,509 1,669 61 Commercial 307 307 28 318 318 38 $ 15,293 $ 17,290 $ 514 $ 17,468 $ 19,440 $ 510 The following table presents average impaired loans and interest income recognized on those impaired loans, by class segment, for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Average Investment in Impaired Loans Interest Income Recognized 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) (Dollars in thousands) Loans without a valuation allowance One-to four-family residential $ 2,391 $ 23 $ 3,941 $ 45 $ 2,415 $ 70 $ 4,215 $ 127 Commercial real estate 8,978 29 8,330 79 9,036 86 8,374 257 Home equity and lines of credit 328 2 213 6 328 7 213 7 Residential construction — — — — — — — — Other construction and land 917 7 674 8 926 20 680 22 Commercial — — — — — — — — $ 12,614 $ 61 $ 13,158 $ 138 $ 12,705 $ 183 $ 13,482 $ 413 Loans with a valuation allowance One-to four-family residential $ 1,500 $ 17 $ 2,648 $ 22 $ 1,518 $ 51 $ 3,190 $ 66 Commercial real estate 1,752 20 1,805 20 1,769 60 1,813 61 Home equity and lines of credit 100 1 100 1 100 3 100 3 Residential construction — — — — — — — — Other construction and land 1,017 9 1,043 11 1,032 26 1,843 31 Commercial 307 4 322 5 313 14 325 14 $ 4,676 $ 51 $ 5,918 $ 59 $ 4,732 $ 154 $ 7,271 $ 175 Total One-to four-family residential $ 3,891 $ 40 $ 6,589 $ 67 $ 3,933 $ 121 $ 7,405 $ 193 Commercial real estate 10,730 49 10,135 99 10,805 146 10,187 318 Home equity and lines of credit 428 3 313 7 428 10 313 10 Residential construction — — — — — — — — Other construction and land 1,934 16 1,717 19 1,958 46 2,523 53 Commercial 307 4 322 5 313 14 325 14 $ 17,290 $ 112 $ 19,076 $ 197 $ 17,437 $ 337 $ 20,753 $ 588 Nonperforming Loans The following table summarizes the balances of nonperforming loans as of September 30, 2016 and December 31, 2015. Certain loans classified as Troubled Debt Restructurings (“TDRs”) and impaired loans may be on non-accrual status even though they are not contractually delinquent. September 30, 2016 December 31, 2015 (Dollars in thousands) One-to four-family residential $ 1,245 $ 2,893 Commercial real estate 4,334 3,628 Home equity loans and lines of credit 114 320 Other construction and land 1,393 384 Commercial 45 55 Consumer — — Non-performing loans $ 7,131 $ 7,280 Troubled Debt Restructurings (TDR) The following tables summarize TDR loans as of the dates indicated: September 30, 2016 Performing Nonperforming Total TDRs TDRs TDRs (Dollars in thousands) One-to-four family residential $ 3,583 $ 210 $ 3,793 Commercial real estate 4,356 2,404 6,760 Home equity and lines of credit 313 — 313 Other construction and land 1,394 210 1,604 Commercial 307 7 314 $ 9,953 $ 2,831 $ 12,784 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 Loan modifications that were deemed TDRs at the time of the modification during the period presented are summarized in the tables below: Three Months Ended September 30, 2016 Nine Months Ended September 30, 2016 (Dollars in thousands) Number of Loans Pre-modification Outstanding Recorded Investment Post-modification Outstanding Recorded Investment Number of Loans Pre-modification Outstanding Recorded Investment Post-modification Outstanding Recorded Investment Forgiveness of principal: Commercial real estate — $ — $ — — $ — $ — — $ — $ — — $ — $ — Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 (Dollars in thousands) Number of Pre-modification Post-modification Number Pre-modification Post-modification Forgiveness of principal: Commercial real estate — $ — $ — 1 $ 1,988 $ 1,693 — $ — $ — 1 $ 1,988 $ 1,693 There were no TDRs that defaulted during the three month and nine month periods ending September 30, 2016 and 2015 and which were modified as TDRs within the previous 12 months. |
REAL ESTATE OWNED
REAL ESTATE OWNED | 9 Months Ended |
Sep. 30, 2016 | |
Banking and Thrift [Abstract] | |
REAL ESTATE OWNED | NOTE 6. REAL ESTATE OWNED The following tables summarize real estate owned and changes in the valuation allowance for real estate owned as of September 30, 2016 and December 31, 2015 and for the three and nine months ended September 30, 2016 and 2015. September 30 December 31, (Dollars in thousands) 2016 2015 Real estate owned, gross $ 6,019 $ 6,741 Less: Valuation allowance 1,395 1,372 Real estate owned, net $ 4,624 $ 5,369 Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2016 2015 2016 2015 Valuation allowance, beginning $ 1,356 $ 1,558 $ 1,372 $ 1,760 Provision charged to expense 67 80 575 171 Reduction due to disposal (28 ) (89 ) (552 ) (382 ) Valuation allowance, ending $ 1,395 $ 1,549 $ 1,395 $ 1,549 As of September 30, 2016 and December 31, 2015, the Company had $0.5 million and $0.7 million, respectively, in loans secured by residential real estate properties for which formal foreclosure proceedings were in process. The Company had $1.4 million of residential real estate properties included in real estate owned as of September 30, 2016 and December 31, 2015. |
DEPOSITS
DEPOSITS | 9 Months Ended |
Sep. 30, 2016 | |
Banking and Thrift [Abstract] | |
DEPOSITS | NOTE 7. DEPOSITS The following table summarizes deposit balances and interest expense by type of deposit as of and for the nine months ended September 30, 2016 and 2015 and the year ended December 31, 2015. As of and for the As of and for the Year Ended Nine Months Ended September 30, December 31, 2016 2015 2015 (Dollars in thousands) Balance Interest Balance Interest Balance Interest Noninterest-bearing demand $ 142,174 $ — $ 100,413 $ — $ 121,062 $ — Interest-bearing demand 115,874 127 101,182 108 103,198 136 Money Market 240,990 548 170,995 425 180,377 558 Savings 38,476 38 31,468 24 35,838 33 Time Deposits 299,764 2,268 279,015 2,815 276,142 3,607 $ 837,278 $ 2,981 $ 683,073 $ 3,372 $ 716,617 $ 4,334 |
BORROWINGS
BORROWINGS | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
BORROWINGS | NOTE 8. BORROWINGS The scheduled maturities and respective weighted average rates of outstanding FHLB advances are as follows for the dates indicated: September 30, 2016 December 31, 2015 Year of Balance Weighted Balance Weighted (Dollars in thousands) 2016 $ 105,000 0.59 % $ 130,000 0.49 % 2017 78,000 0.74 % 8,000 1.23 % 2018 12,000 0.91 % 2,000 1.25 % 2019 12,500 1.82 % 12,500 1.82 % 2020 1,000 1.78 % 1,000 1.78 % $ 208,500 0.75 % $ 153,500 0.65 % |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | NOTE 9. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposure to business and operational risks through management of its core business activities. The Company manages interest rate risk primarily by managing the amount, sources, and duration of its investment securities portfolio and borrowings and through the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Derivative financial instruments are used to manage differences in the amount, timing, and duration of known or expected cash receipts or payments principally related to loans and borrowings. The table below presents the fair value of the Company’s derivative financial instruments as of the dates indicated as well as their classification on the consolidated balance sheet (in thousands). Fair Value September December 31, Balance Sheet Location 30, 2016 2015 Designated as hedges: Cash flow hedge of borrowings - interest rate swap Other assets $ 67 $ — Total $ 67 $ — Cash flow hedge of borrowings - interest rate swap Other liabilities $ 17 $ — Total $ 17 $ — Not designated as hedges: Mortgage banking - loan commitment Other assets $ 58 $ 30 Mortgage banking - forward sales commitment Other assets 23 15 Total $ 81 $ 45 Derivative contracts that are not accounted for as hedging instruments under ASC 815, Derivatives and Hedging The Company’s objectives in using interest rate derivatives are to add stability to net interest revenue and to manage its exposure to interest rate movements. To accomplish this objective, the Company uses interest rate swaps as part of its interest rate risk management strategy. At September 30, 2016, the Company had one interest rate swap with a notional amount of $14.0 million that was designated as a cash flow hedge of the interest expense on junior subordinated notes. Also at September 30, 2016 the Company had one interest rate swap with a notional amount of $15.0 million that was designated as a cash flow hedge of the interest expense on variable rate FHLB advances. The swap contracts involve the payment of fixed-rate amounts to a counterparty in exchange for the Company receiving variable-rate payments over the four year life of the junior subordinated note interest rate swap agreement and the two year life of the FHLB interest rate swap agreement without exchange of the underlying notional amounts. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense when the swaps become effective, as interest payments are made on the Company’s LIBOR based variable-rate junior subordinated debt and LIBOR based FHLB advance. The table below presents the effect of the Company’s cash flow hedge on the Consolidated Statement of Income (in thousands). Amount of Gain(Loss) Recognized in Other Gain(Loss) Reclassifed from Accumulated Other For the three and nine months ended September 30, 2016 December 31, 2015 Location 2016 2015 Interest rate swap $ 32 $ — Interest Expense $ 12 $ — The Company may be exposed to credit risk in the event of non-performance by the counterparties to its interest rate derivative agreements. The Company assesses the credit risk of its financial institution counterparties by monitoring publicly available credit rating and financial information. The Company manages dealer credit risk by entering into interest rate derivatives only with primary and highly rated counterparties, the use of ISDA master agreements and counterparty limits. The agreements contain collateral arrangements with the amount of collateral to be posted generally governed by the settlement value of outstanding swaps. The Company does not currently anticipate any losses from failure of interest rate derivative counterparties to honor their obligations. The Company has agreements with its derivative counterparties that contain a provision in which if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, the Company could also be declared in default on its derivative obligations. Furthermore, certain agreements covering the Company’s derivative instruments contain provisions that require the Company to maintain its status as a well / adequately capitalized institution. These provisions enable the counterparties to the derivative instruments to request immediate payment or require the Company to post additional collateral. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 10. INCOME TAXES 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. As of September 30, 2016 and December 31, 2015, $0.3 million and $0.6 million in valuation allowance related to net deferred tax assets on investment securities remains in accumulated other comprehensive income. This valuation allowance will be recognized as tax expense on a security-by-security basis upon the sale or maturity of the individual securities. The tax expense is expected to be recognized over the remaining life of the securities of approximately 1.5 years. The components of net deferred taxes as of September 30, 2016 and December 31, 2015 are summarized as follows: September 30, December 31, 2016 2015 (Dollars in thousands) Deferred tax assets: Federal net operating loss $ 9,535 $ 10,750 Allowance for loan losses 3,165 3,557 Deferred compensation and post employment benefits 3,396 3,498 North Carolina net operating loss 624 988 Valuation reserve for other real estate 516 516 Non-accrual interest 372 286 Tax credits and other carryforwards 376 197 Deferred gains 287 154 Unrealized losses on securities — 697 Loan basis difference 235 — Deposit premium 186 — Other 769 421 Gross deferred tax assets 19,461 21,064 Deferred tax liabilities: Fixed assets 416 499 Loan servicing rights 897 881 Deferred loan costs 996 708 Prepaid expenses 30 146 Unrealized gains on securities 1,149 — Other 598 — Total deferred tax liabilities 4,086 2,234 Net deferred tax asset $ 15,375 $ 18,830 On July 23, 2013, North Carolina Governor Pat McCrory signed a major tax reform bill into law that lowered the North Carolina corporate income tax rate among other things. Specifically, the corporate income tax rate was reduced from 6.9% to 6% in 2014 and to 5% in 2015. The rate was to be further reduced to 4% during the 2016 tax year and to 3% for post-2016 tax years provided that specified revenue growth targets are reached. Based on state income tax revenues announced by the North Carolina Governor’s Office on August 2, 2016, the revenue target for the fiscal year ended June 30, 2016 was met, resulting in a reduction of the state income tax rate to 3% effective January 1, 2017. As a result, the Company recorded a $0.4 million reduction in the net deferred tax asset as of September 30, 2016. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2016 | |
Earnings per common share: | |
EARNINGS PER SHARE | NOTE 11. EARNINGS PER SHARE The following is a reconciliation of the numerator and denominator of basic and diluted net income per share of common stock: (Dollars in thousands, except per share amounts) For the Three Months For the Nine Months Numerator: Net income $ 1,800 $ 4,024 Denominator: Weighted-average common shares outstanding - basic 6,466,375 6,483,535 Effect of dilutive shares 17,851 16,663 Weighted-average common shares outstanding - diluted 6,484,226 6,500,198 Earnings per share - basic $ 0.28 $ 0.62 Earnings per share - diluted $ 0.28 $ 0.62 (Dollars in thousands, except per share amounts) For the Three Months For the Nine Months Numerator: Net income $ 2,165 $ 21,885 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 $ 0.33 $ 3.34 Earnings per share - diluted $ 0.33 $ 3.34 For the three and nine months ended September 30, 2016, all of the 411,500 outstanding stock options remain anti-dilutive and have not been included in calculating diluted earnings per share. There were no stock options outstanding during the nine months ended September 30, 2015. For the three and nine months ended September 30, 2016, all of the 178,300 outstanding restricted stock units were dilutive and included in calculating diluted earnings per share. There were no restricted stock units outstanding during the nine months ended September 30, 2015. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 12. ACCUMLATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the components of accumulated other comprehensive income and changes in those components as of and for the three and Nine months ended September 30, 2016 and 2015. Three Months Ended September 30, 2016 Available Held to Maturity Deferred Tax Cash flow Total (Dollars in thousands) Balance, beginning of period $ 3,030 $ (211 ) $ (284 ) $ (28 ) $ 2,507 Change in deferred tax valuation allowance attributable to net unrealized losses on investment securities — — 33 — 33 Change in net unrealized holding gains and losses on securities available for sale (1,390 ) — — — (1,390 ) Reclassification adjustment for net securities gains realized in net income (407 ) — — — (407 ) Amortization of unrealized gains and losses on securities transferred to held to maturity — 324 — — 324 Change in unrealized holding loss on cash flow hedge — — — 95 95 Income tax effect 696 (113 ) — (35 ) 548 Balance, end of period $ 1,929 $ — $ (251 ) $ 32 $ 1,710 Three Months Ended September 30, 2015 (Dollars in thousands) Balance, beginning of period $ (512 ) $ (840 ) $ (814 ) $ — $ (2,166 ) Change in deferred tax valuation allowance attributable to unrealized gains on investment securities — — 95 — 95 Change in unrealized holding gains and losses on securities available for sale 2,172 — — — 2,172 Reclassification adjustment for net securities gains realized in net income (35 ) — — — (35 ) 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 — 163 — — 163 Income tax effect (807 ) (60 ) — — (867 ) Balance, end of period $ 818 $ (737 ) $ (719 ) $ — $ (638 ) Nine Months Ended September 30, 2016 Available Held to Maturity Deferred Tax Cash flow Total (Dollars in thousands) Balance, beginning of period $ (594 ) $ (563 ) $ (579 ) $ — $ (1,736 ) Change in deferred tax valuation allowance attributable to net unrealized losses on investment securities — — 328 — 328 Change in net unrealized holding gains and losses on securities available for sale 5,115 — — — 5,115 Reclassification adjustment for net securities gains realized in net income (1,105 ) — — — (1,105 ) Amortization of unrealized gains and losses on securities transferred to held to maturity — 894 — — 894 Change in unrealized holding loss on cash flow hedge — — — 50 50 Income tax effect (1,487 ) (331 ) — (18 ) (1,836 ) Balance, end of period $ 1,929 $ — $ (251 ) $ 32 $ 1,710 Nine Months Ended September 30, 2015 (Dollars in thousands) Balance, beginning of period $ (236 ) $ (1,165 ) $ (868 ) $ — $ (2,269 ) Change in deferred tax valuation allowance attributable to unrealized gains on investment securities — — 149 — 149 Change in unrealized holding gains and losses on securities available for sale 2,020 — — — 2,020 Reclassification adjustment for net securities gains realized in net income (322 ) — — — (322 ) 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 — 705 — — 705 Income tax effect (644 ) (277 ) — — (921 ) Balance, end of period $ 818 $ (737 ) $ (719 ) $ — $ (638 ) The following table shows the line items in the Consolidated Statements of Income affected by amounts reclassified from accumulated other comprehensive income: Three Months Ended Nine Months Ended September 30 September 30 Income Statement (Dollars in thousands) 2016 2015 2016 2015 Line Item Effected Available-for-sale securities Gains recognized $ 407 $ 35 $ 1,105 $ 322 Gain on sale of investments, net of loss Income tax effect (150 ) (13 ) (408 ) (121 ) Income tax expense Reclassified out of AOCI, net of tax 257 22 697 201 Net income Held-to-maturity securities Amortization of unrealized losses (13 ) (163 ) (917 ) (705 ) Interest income - taxable securities Income tax effect 5 61 339 265 Income tax expense Reclassified out of AOCI, net of tax (8 ) (102 ) (578 ) (440 ) Net income Deferred tax valuation allowance Recognition of reversal of valuation allowance 33 95 328 149 Income tax expense Total reclassified out of AOCI, net of tax $ 282 $ 15 $ 447 $ (90 ) Net income |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 13. 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 customer’s creditworthiness. The amount of collateral obtained, if it is deemed necessary by the Company upon extension of credit, is based on management’s 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 Company’s approximate commitments to extend credit: September 30, 2016 (Dollars in thousands) Lines of credit $ 104,586 Standby letters of credit 827 $ 105,413 As of September 30, 2016, the Company had outstanding commitments to originate loans as follows: September 30, 2016 Amount Range of Rates (Dollar in thousands) Fixed $ 30,031 1.99% to 6.50% Variable 12,769 3.25% to 6.25% $ 42,800 The allowance for unfunded commitments was $0.1 million at September 30, 2016 and December 31, 2015. 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 September 30, 2016 and December 31, 2015. In the normal course of business, the Company is periodically involved in litigation. In the opinion of the Company’s 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 | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES | NOTE 14. 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 instrument’s 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 Company’s entire holdings of a particular financial instrument. Because no active market exists for a significant portion of the Company’s 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: Investment Securities We obtain fair values for debt securities available for sale from a third-party pricing service, which utilizes several sources for valuing fixed-income securities. The market evaluation sources for debt securities available for sale 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. Also included in securities are corporate bonds which are valued using significant unobservable inputs and are classified as Level 3. Trading securities represent investments in exchange traded mutual funds 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, forward sale commitments and interest rate swaps. Interest rate lock commitments and forward sale commitments 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. Interest rate swaps are valued by a third party using significant assumptions that are observable in the market and can be corroborated by market data. The Company classifies interest rate swaps as Level 2. 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 borrower’s 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 entity’s 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. Securities Held to Maturity We obtain fair values for debt securities held to maturity from a third-party pricing service, which utilizes several sources for valuing fixed-income securities. The market evaluation sources for debt securities held to maturity 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. 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 Company’s 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. Other Borrowings 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. 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: September 30, 2016 Level 1 Level 2 Level 3 Total (Dollars in thousands) Trading account assets - mutual funds $ 5,133 $ — $ — $ 5,133 Securities available for sale: U.S. government agencies — 12,173 — 12,173 Municipal securities — 126,822 — 126,822 Mortgage-backed securities — 164,660 — 164,660 U.S. Treasury securities 2,550 — — 2,550 Corporate debt securities — 13,128 2,758 15,886 Mutual funds 619 — — 619 8,302 316,783 2,758 327,843 Loan servicing rights — — 2,426 2,426 Derivative assets — 67 — 67 Forward sales commitments — — 23 23 Interest rate lock commitments — — 58 58 Total assets $ 8,302 $ 316,783 $ 5,265 $ 330,350 Derivative liabilities $ — $ 17 $ — $ 17 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 There were no liabilities measured on a recurring basis at December 31, 2015. 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: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (Dollars in thousands) Balance at beginning of period $ 2,510 $ 2,176 $ 2,390 $ 2,248 Corporate debt securities available for sale market valuation, net included in accumulated other comprehensive gain 2,758 — 2,758 — Loan servicing right activity, included in servicing income, net Capitalization from loans sold 185 215 444 431 Fair value adjustment (150 ) (55 ) (362 ) (300 ) Mortgage derivative gains (losses) included in Other income (38 ) 72 35 29 Balance at end of period $ 5,265 $ 2,408 $ 5,265 $ 2,408 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 September 30, 2016 or December 31, 2015. September 30, 2016 Level 1 Level 2 Level 3 Total (Dollars in thousands) Collateral dependent impaired loans: One-to four family residential $ — $ — $ 2,337 $ 2,337 Commercial real estate — — 7,348 7,348 Home equity loans and lines of credit — — 213 213 Other construction and land — — 914 914 Real estate owned: One-to four family residential — — 1,413 1,413 Commercial real estate — — 951 951 Other construction and land — — 2,260 2,260 Total assets $ — $ — $ 15,436 $ 15,436 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 There were no liabilities measured at fair value on a nonrecurring basis as of September 30, 2016 or December 31, 2015. Impaired loans totaling $4.6 million and $5.1 million at September 30, 2016 and December 31, 2015, respectively, 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 September 30, 2016. Valuation Technique Unobservable Input General 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 5 - 35% Discount rate 12% - 14% 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 September 30, 2016 Carrying (Dollars in thousands) Amount Total Level 1 Level 2 Level 3 Assets: Cash and equivalents $ 62,029 $ 62,029 $ 62,029 $ — $ — Trading securities 5,133 5,133 5,133 — — Securities available for sale 322,710 322,710 3,169 316,783 2,758 Loans held for sale 8,428 9,230 — 9,230 — Loans receivable, net 727,403 717,524 — — 717,524 Other investments, at cost 11,436 11,436 — 11,436 — Interest receivable 4,309 4,309 — 4,309 — Bank owned life insurance 31,169 31,169 — 31,169 — Loan servicing rights 2,426 2,426 — — 2,426 Forward sales commitments 23 23 — — 23 Interest rate lock commitments 58 58 — — 58 Derivative asset 67 67 67 Liabilities: Demand deposits $ 537,514 538,019 $ — $ 538,019 $ — Time deposits 299,764 297,960 — — 297,960 Federal Home Loan Bank advances 208,500 208,683 — 208,683 — Junior subordinated debentures 14,433 14,433 — 14,433 — Other borrowings 2,620 2,812 — — 2,812 Accrued interest payable 244 244 — 244 — Derivative liability 17 17 — 17 — 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 — |
SHARE REPURCHASES
SHARE REPURCHASES | 9 Months Ended |
Sep. 30, 2016 | |
Banking and Thrift [Abstract] | |
SHARE REPURCHASES | NOTE 15. SHARE REPURCHASES On January 28, 2016, the Company announced that the Board of Directors had authorized the repurchase of up to 327,318 shares of the Company’s common stock through January 27, 2017. The authorization represented approximately 5% of the Company’s shares outstanding as of December 31, 2015. The following table summarizes share repurchase activity through September 30, 2016: Period Total Number of Shares Average Price Paid per Total Number of Shares Maximum Number of January 1, 2016 to January 31, 2016 — $ — — — February 1, 2016 to February 29, 2016 40,621 $ 17.04 40,621 286,697 March 1, 2016 to March 31, 2016 33,382 $ 17.70 33,382 253,315 April 1, 2016 to April 30, 2016 5,997 $ 17.65 5,997 247,318 May 1, 2016 to September 30, 2016 — $ — — 247,318 Total year-to-date 2016 80,000 $ 17.42 80,000 247,318 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
SUBSEQUENT EVENTS | NOTE 16. SUBSEQUENT EVENTS On October 19, 2016, the Bank entered into a definitive agreement with Stearns Bank, N.A. (“Stearns”) pursuant to which the Bank will acquire two branches in northern Georgia. The Bank will assume approximately $150.0 million in deposits, have the option to purchase up to $5.0 million in loans, and pay a deposit premium of 3.65%. The purchase is subject to customary closing conditions including regulatory approvals. |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Organization And Basis Of Presentation Policies | |
Organization | 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 Bancorp’s merger with and into the Company, pursuant to which Macon Bancorp converted from the mutual to stock form of organization. The Company’s 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 was inactive as of September 30, 2016. 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. |
Estimates | Estimates The preparation of consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those 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 The accompanying consolidated financial statements include the accounts of the Company, the Bank, and its wholly owned subsidiary. The accounts of the Trust are not consolidated with the Company. In consolidation all significant intercompany accounts and transactions have been eliminated. |
Reclassification | Reclassification Certain amounts in the prior years’ financial statements may have been reclassified to conform to the current year’s presentation. The reclassifications had no significant effect on our results of operations or financial condition as previously reported. |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with our Annual Report on Form 10-K, filed with the SEC on March 15, 2016. In the opinion of management, these interim financial statements present fairly, in all material respects, the Company’s consolidated financial position and results of operations for each of the interim periods presented. Results of operations for interim periods are not necessarily indicative of the results of operations that may be expected for a full year or any future period. |
Acquisition Activities | Acquisition Activities The Company accounts for business combinations under the acquisition method of accounting. Assets acquired and liabilities assumed are measured and recorded at fair value at the date of acquisition, including identifiable intangible assets. If the fair value of net assets purchased exceeds the fair value of consideration paid, a bargain purchase gain is recognized at the date of acquisition. Conversely, if the consideration paid exceeds the fair value of the net assets acquired, goodwill is recognized at the acquisition date. Fair values are subject to refinement for a period not to exceed one year after the closing date of an acquisition as information relative to closing date fair values becomes available. The determination of the fair value of loans acquired takes into account credit quality deterioration and probability of loss; therefore, the related allowance for loan losses is not carried forward. All identifiable intangible assets that are acquired in a business combination are recognized at fair value on the acquisition date. Identifiable intangible assets are recognized separately if they arise from contractual or other legal rights or if they are separable (i.e., capable of being sold, transferred, licensed, rented, or exchanged separately from the entity). Deposit liabilities and the related depositor relationship intangible assets may be exchanged in observable exchange transactions. As a result, the depositor relationship intangible asset is considered identifiable, because the separability criterion has been met. |
Subsequent Events | Subsequent Events Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet including the estimates inherent in the process of preparing financial statements. Unrecognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. The Company has reviewed events occurring through the issuance date of the Consolidated Financial Statements and no subsequent events have occurred requiring accrual or disclosure in these financial statements other than as described in Footnote 16. |
Recent Accounting Standards Updates | Recent Accounting Standards Updates In January 2016, the Financial Accounting Standards Board (“FASB”) amended the Financial Instruments In March 2016, the FASB amended the Revenue from Contracts with Customers In March 2016, the FASB issued guidance to simplify several aspects of the accounting for share-based payment award transactions including the income tax consequences, the classification of awards as either equity or liabilities, and the classification on the statement of cash flows. Additionally, the guidance simplifies two areas specific to entities other than public business entities allowing them to apply a practical expedient to estimate the expected term for all awards with performance or service conditions that have certain characteristics and also allowing them to make a one-time election to switch from measuring all liability-classified awards at fair value to measuring them at intrinsic value. The amendments will be effective for the Company for annual periods beginning after December 15, 2016 and interim periods within those annual periods. The Company does not expect these amendments to have a material effect on its financial statements. In June 2016, the FASB issued amendments to Accounting Standards Update (“ASU”) 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. In August 2016, the FASB issued ASU No. 2016-15 , “Classification of Certain Cash Receipts and Cash Payments.” 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 Company’s financial position, results of operations or cash flows. |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Investment Securities Tables | |
Schedule of investment securities available for sale | September 30, 2016 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. government agencies $ 12,088 $ 85 $ — $ 12,173 Municipal securities 124,939 2,110 (227 ) 126,822 Mortgage-backed securities 163,745 1,500 (585 ) 164,660 U.S. Treasury securities 2,501 49 — 2,550 Corporate debt securities 15,766 152 (32 ) 15,886 Mutual funds 612 7 — 619 $ 319,651 $ 3,903 $ (844 ) $ 322,710 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 |
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 |
Unrealized Losses Related to Held to Maturity Securities Previously Recognized in Other Comprehensive Income | For the Three Months Ended For the Nine Months Ended September 30 September 30 (Dollars in thousands) 2016 2015 2016 2015 Beginning unrealized loss related to HTM securities previously recognized in AOCI $ 333 $ 1,345 $ 903 $ 1,887 Amortization of unrealized losses on HTM securities previously recognized in AOCI (8 ) (163 ) (578 ) (705 ) Reduction from transfers to AFS (325 ) — (325 ) — Ending unrealized loss in AOCI related to HTM securities previously recognized in AOCI $ — $ 1,182 $ — $ 1,182 |
Securities Gross Unrealized Losses Position | September 30, 2016 Less Than 12 Months More Than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (Dollars in thousands) Available for Sale: Municipal securities $ 16,075 $ 217 $ 985 $ 10 $ 17,060 $ 227 Mortgage-backed securities 52,271 413 14,315 172 66,586 585 Corporate debt securities 4,565 32 — — 4,565 32 $ 72,911 $ 662 $ 15,300 $ 182 $ 88,211 $ 844 December 31, 2015 Less Than 12 Months More Than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized 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 |
Proceeds from Sales of Securities Available For Sale and Their Corresponding Gross Realized Gains and Losses | September 30, 2016 Less Than 12 Months More Than 12 Months Total Municipal securities 13 2 15 Mortgage-backed securities 29 12 41 Corporate debt securities 5 — 5 47 14 61 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 Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (Dollars in thousands) Gross proceeds $ 39,619 $ 7,941 $ 115,328 $ 33,848 Gross realized gains 407 35 1,139 342 Gross realized losses — — 34 20 |
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 $ 3,889 $ 3,904 Over 1 year through 5 years 18,034 18,286 After 5 years through 10 years 29,095 29,458 Over 10 years 104,888 106,402 155,906 158,050 Mortgage-backed securities 163,745 164,660 Total $ 319,651 $ 322,710 |
ACQUISITION ACTIVITIES (Tables)
ACQUISITION ACTIVITIES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Acquisition Activities Tables | |
Schedule of Assets Acquired and Liabilities Assumed in Acquisition [Table Text Block] | As recorded by Fair Value As recorded by Old Town Bank Adjustments (1) the Company Assets Cash and cash equivalents $ 7,573 $ — $ 7,573 Investments 30,882 246 31,128 Loans 64,573 272 64,845 Fixed assets 3,414 (22 ) 3,392 Interest receivable 552 — 552 Core deposit intangible — 530 530 Other real estate owned 880 43 923 Deferred tax asset 259 186 445 Other assets 938 (306 ) 632 Total assets acquired $ 109,071 $ 949 $ 110,020 Liabilities Deposits $ 88,059 $ 648 $ 88,707 FHLB advances 9,000 25 9,025 Accrued Interest payable 30 — 30 Other liabilities 125 (9 ) 116 Total liabilities assumed 97,214 664 97,878 Excess of assets acquired over liabities assumed $ 11,857 $ 285 $ 12,142 Purchase price 13,486 Goodwill $ 1,344 (1) Fair values are subject to refinement for a period not to exceed one year after the closing date of an acquisition as information relative to closing date fair values becomes available. In particular, the fair value of collateral dependent loans and other real estate owned may change to the extent that the Company receives updated appraisals indicating changes in valuation assumptions at acquisition. |
LOANS RECEIVABLE (Tables)
LOANS RECEIVABLE (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Loans Receivable Tables | |
Loan Receivable | September 30, 2016 December 31, 2015 (Dollars in thousands) Real estate mortgage loans: One-to four-family residential $ 271,358 $ 248,633 Commercial real estate 283,521 214,413 Home equity loans and lines of credit 50,844 53,446 Residential construction 16,962 7,848 Other construction and land 59,136 57,316 Total real estate loans 681,821 581,656 Commercial and industrial 43,397 41,046 Consumer 4,382 3,639 Total commercial and consumer 47,779 44,685 Loans receivable, gross 729,600 626,341 Less: Net deferred loan fees (805 ) (1,388 ) Unamortized premium 707 557 Unamortized discount (2,099 ) (1,438 ) Loans receivable, net $ 727,403 $ 624,072 |
Activity Related to Discount on Purchased Loans | For the Three Months Ended For the Nine Months Ended September 30, September 30, (Dollars in thousands) 2016 2015 2016 2015 Discount on purchased loans, beginning of period $ 2,295 $ 1,499 $ 1,438 $ 1,487 Additional discount for new purchases — — 1,092 484 Accretion (196 ) (73 ) (431 ) (250 ) Discount applied to charge-offs — — — (295 ) Discount on purchased loans, end of period $ 2,099 $ 1,426 $ 2,099 $ 1,426 |
ALLOWANCE FOR LOAN LOSSES (Tabl
ALLOWANCE FOR LOAN LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Allowance For Loan Losses Tables | |
Changes in Allowance for Loan Losses | Three Months Ended September 30, 2016 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 $ 2,679 $ 3,379 $ 887 $ 175 $ 1,064 $ 530 $ 226 $ 8,940 Provision (376 ) 494 (137 ) (60 ) (95 ) 79 195 100 Charge-offs (19 ) — (28 ) — (44 ) (52 ) (146 ) (289 ) Recoveries 27 170 44 — 28 13 71 353 Ending balance $ 2,311 $ 4,043 $ 766 $ 115 $ 953 $ 570 $ 346 $ 9,104 Three Months Ended September 30, 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 $ 2,260 $ 2,607 $ 1,080 $ 344 $ 1,666 $ 680 $ 814 $ 9,451 Provision 272 325 37 (105 ) (292 ) (213 ) (24 ) — Charge-offs (13 ) — (22 ) — (28 ) — (16 ) (79 ) Recoveries 108 — 1 1 50 19 82 261 Ending balance $ 2,627 $ 2,932 $ 1,096 $ 240 $ 1,396 $ 486 $ 856 $ 9,633 Nine Months Ended September 30, 2016 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 $ 2,455 $ 3,221 $ 1,097 $ 278 $ 1,400 $ 603 $ 407 $ 9,461 Provision (83 ) 1,081 (351 ) (195 ) (78 ) (106 ) (168 ) 100 Charge-offs (117 ) (431 ) (158 ) — (481 ) (62 ) (172 ) (1,421 ) Recoveries 56 172 178 32 112 135 279 964 Ending balance $ 2,311 $ 4,043 $ 766 $ 115 $ 953 $ 570 $ 346 $ 9,104 Nine Months Ended September 30, 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 (335 ) 93 128 (273 ) (1,642 ) 150 379 (1,500 ) Charge-offs (251 ) (45 ) (391 ) — (114 ) (1 ) (36 ) (838 ) Recoveries 230 167 26 3 216 29 228 899 Ending balance $ 2,627 $ 2,932 $ 1,096 $ 240 $ 1,396 $ 486 $ 856 $ 9,633 |
Investment in Loans by Portfolio Segment | September 30, 2016 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 $ 219 $ 99 $ 4 $ — $ 164 $ 28 $ — $ 514 Collectively evaluated for impairment 2,092 3,945 762 115 789 541 346 8,590 $ 2,311 $ 4,044 $ 766 $ 115 $ 953 $ 569 $ 346 $ 9,104 Loans Receivable Individually evaluated for impairment $ 3,838 $ 9,098 $ 313 $ — $ 1,737 $ 307 $ — $ 15,293 Collectively evaluated for impairment 267,520 274,423 50,531 16,962 57,399 43,090 4,382 714,307 $ 271,358 $ 283,521 $ 50,844 $ 16,962 $ 59,136 $ 43,397 $ 4,382 $ 729,600 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 |
Credit Risk Profile by Rating | September 30, 2016 Loan Grade One-to Four- Commercial Home Equity Residential Other Commercial Consumer Total (Dollars in thousands) 1 $ — $ 9,409 $ — $ — $ — $ 1,738 $ — $ 11,147 2 — 4,327 — — — 1,476 — 5,803 3 28,434 22,512 1,593 524 1,542 2,703 — 57,308 4 73,505 131,459 3,569 10,271 20,998 25,384 52 265,238 5 26,155 93,023 3,615 2,051 18,260 11,221 333 154,658 6 2,695 12,981 — 170 2,467 269 — 18,582 7 1,730 8,263 — — 1,313 452 — 11,758 $ 132,519 $ 281,974 $ 8,777 $ 13,016 $ 44,580 $ 43,243 $ 385 $ 524,494 Ungraded Loan Exposure: Performing $ 137,779 $ 1,547 $ 41,951 $ 3,730 $ 14,502 $ 154 $ 3,997 $ 203,660 Nonperforming 1,060 — 116 216 54 — — 1,446 Subtotal $ 138,839 $ 1,547 $ 42,067 $ 3,946 $ 14,556 $ 154 $ 3,997 $ 205,106 Total $ 271,358 $ 283,521 $ 50,844 $ 16,962 $ 59,136 $ 43,397 $ 4,382 $ 729,600 December 31, 2015 Loan Grade One-to Four- Commercial Home Equity Residential Other 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 |
Aging Analysis of Recorded Investment of Past-Due Financing Receivables | September 30, 2016 30-59 Days Past 60-89 Days Past 90 Days and Over Total Past Due Current Total Loans (Dollars in thousands) One-to four-family residential $ 4,865 $ 379 $ 510 $ 5,754 $ 265,604 $ 271,358 Commercial real estate 3,088 128 2,293 5,509 278,012 283,521 Home equity and lines of credit 240 25 116 381 50,463 50,844 Residential construction — 171 216 387 16,575 16,962 Other construction and land 156 — 905 1,061 58,075 59,136 Commercial 125 16 — 141 43,256 43,397 Consumer 5 1 — 6 4,376 4,382 Total $ 8,479 $ 720 $ 4,040 $ 13,239 $ 716,361 $ 729,600 December 31, 2015 30-59 Days Past 60-89 Days Past 90 Days and Over Past Total Past Due Current Total Loans (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 |
Summary of Average Impaired Loans | The following table presents investments in loans considered to be impaired and related information on those impaired loans as of September 30, 2016 and December 31, 2015. September 30, 2016 December 31, 2015 Recorded Balance Unpaid Principal Specific Recorded Balance Unpaid Principal Specific (Dollars in thousands) Loans without a valuation allowance One-to four-family residential $ 2,337 $ 2,391 $ — $ 4,289 $ 4,403 $ — Commercial real estate 7,348 8,979 — 7,226 8,809 — Home equity and lines of credit 213 328 — 213 328 — Residential construction — — — — — — Other construction and land 815 917 — 658 818 — Commercial — — — — — — $ 10,713 $ 12,615 $ — $ 12,386 $ 14,358 $ — Loans with a valuation allowance One-to four-family residential $ 1,500 $ 1,500 $ 219 $ 2,026 $ 2,026 $ 344 Commercial real estate 1,751 1,751 99 1,787 1,787 61 Home equity and lines of credit 100 100 4 100 100 6 Residential construction — — — — — — Other construction and land 922 1,017 164 851 851 61 Commercial 307 307 28 318 318 38 $ 4,580 $ 4,675 $ 514 $ 5,082 $ 5,082 $ 510 Total One-to four-family residential $ 3,837 $ 3,891 $ 219 $ 6,315 $ 6,429 $ 344 Commercial real estate 9,099 10,730 99 9,013 10,596 61 Home equity and lines of credit 313 428 4 313 428 6 Residential construction — — — — — — Other construction and land 1,737 1,934 164 1,509 1,669 61 Commercial 307 307 28 318 318 38 $ 15,293 $ 17,290 $ 514 $ 17,468 $ 19,440 $ 510 The following table presents average impaired loans and interest income recognized on those impaired loans, by class segment, for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Average Investment in Impaired Loans Interest Income Recognized 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) (Dollars in thousands) Loans without a valuation allowance One-to four-family residential $ 2,391 $ 23 $ 3,941 $ 45 $ 2,415 $ 70 $ 4,215 $ 127 Commercial real estate 8,978 29 8,330 79 9,036 86 8,374 257 Home equity and lines of credit 328 2 213 6 328 7 213 7 Residential construction — — — — — — — — Other construction and land 917 7 674 8 926 20 680 22 Commercial — — — — — — — — $ 12,614 $ 61 $ 13,158 $ 138 $ 12,705 $ 183 $ 13,482 $ 413 Loans with a valuation allowance One-to four-family residential $ 1,500 $ 17 $ 2,648 $ 22 $ 1,518 $ 51 $ 3,190 $ 66 Commercial real estate 1,752 20 1,805 20 1,769 60 1,813 61 Home equity and lines of credit 100 1 100 1 100 3 100 3 Residential construction — — — — — — — — Other construction and land 1,017 9 1,043 11 1,032 26 1,843 31 Commercial 307 4 322 5 313 14 325 14 $ 4,676 $ 51 $ 5,918 $ 59 $ 4,732 $ 154 $ 7,271 $ 175 Total One-to four-family residential $ 3,891 $ 40 $ 6,589 $ 67 $ 3,933 $ 121 $ 7,405 $ 193 Commercial real estate 10,730 49 10,135 99 10,805 146 10,187 318 Home equity and lines of credit 428 3 313 7 428 10 313 10 Residential construction — — — — — — — — Other construction and land 1,934 16 1,717 19 1,958 46 2,523 53 Commercial 307 4 322 5 313 14 325 14 $ 17,290 $ 112 $ 19,076 $ 197 $ 17,437 $ 337 $ 20,753 $ 588 |
Financing Receivables on Nonaccrual Status | September 30, 2016 December 31, 2015 (Dollars in thousands) One-to four-family residential $ 1,245 $ 2,893 Commercial real estate 4,334 3,628 Home equity loans and lines of credit 114 320 Other construction and land 1,393 384 Commercial 45 55 Consumer — — Non-performing loans $ 7,131 $ 7,280 |
Summary of TDR Loans | The following tables summarize TDR loans as of the dates indicated: September 30, 2016 Performing Nonperforming Total TDRs TDRs TDRs (Dollars in thousands) One-to-four family residential $ 3,583 $ 210 $ 3,793 Commercial real estate 4,356 2,404 6,760 Home equity and lines of credit 313 — 313 Other construction and land 1,394 210 1,604 Commercial 307 7 314 $ 9,953 $ 2,831 $ 12,784 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 Loan modifications that were deemed TDRs at the time of the modification during the period presented are summarized in the tables below: Three Months Ended September 30, 2016 Nine Months Ended September 30, 2016 (Dollars in thousands) Number of Loans Pre-modification Outstanding Recorded Investment Post-modification Outstanding Recorded Investment Number of Loans Pre-modification Outstanding Recorded Investment Post-modification Outstanding Recorded Investment Forgiveness of principal: Commercial real estate — $ — $ — — $ — $ — — $ — $ — — $ — $ — Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 (Dollars in thousands) Number of Pre-modification Post-modification Number Pre-modification Post-modification Forgiveness of principal: Commercial real estate — $ — $ — 1 $ 1,988 $ 1,693 — $ — $ — 1 $ 1,988 $ 1,693 |
REAL ESTATE OWNED (Tables)
REAL ESTATE OWNED (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Real Estate Owned Tables | |
Summary of Real Estate Owned and Changes in the Valuation Allowances | September 30 December 31, (Dollars in thousands) 2016 2015 Real estate owned, gross $ 6,019 $ 6,741 Less: Valuation allowance 1,395 1,372 Real estate owned, net $ 4,624 $ 5,369 Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2016 2015 2016 2015 Valuation allowance, beginning $ 1,356 $ 1,558 $ 1,372 $ 1,760 Provision charged to expense 67 80 575 171 Reduction due to disposal (28 ) (89 ) (552 ) (382 ) Valuation allowance, ending $ 1,395 $ 1,549 $ 1,395 $ 1,549 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Deposits Tables | |
Summary of Deposit Balances and Interest Expenses | As of and for the As of and for the Year Ended Nine Months Ended September 30, December 31, 2016 2015 2015 (Dollars in thousands) Balance Interest Balance Interest Balance Interest Noninterest-bearing demand $ 142,174 $ — $ 100,413 $ — $ 121,062 $ — Interest-bearing demand 115,874 127 101,182 108 103,198 136 Money Market 240,990 548 170,995 425 180,377 558 Savings 38,476 38 31,468 24 35,838 33 Time Deposits 299,764 2,268 279,015 2,815 276,142 3,607 $ 837,278 $ 2,981 $ 683,073 $ 3,372 $ 716,617 $ 4,334 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Borrowings Tables | |
Scheduled maturities of FHLB advances and respective weighted average rates | September 30, 2016 December 31, 2015 Year of Balance Weighted Balance Weighted (Dollars in thousands) 2016 $ 105,000 0.59 % $ 130,000 0.49 % 2017 78,000 0.74 % 8,000 1.23 % 2018 12,000 0.91 % 2,000 1.25 % 2019 12,500 1.82 % 12,500 1.82 % 2020 1,000 1.78 % 1,000 1.78 % $ 208,500 0.75 % $ 153,500 0.65 % |
DERIVATIVE FINANCIAL INSTRUME32
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Financial Instruments And Hedging Activities Tables | |
Schedule of fair value of the Company's derivative financial instruments | Fair Value September December 31, Balance Sheet Location 30, 2016 2015 Designated as hedges: Cash flow hedge of borrowings - interest rate swap Other assets $ 67 $ — Total $ 67 $ — Cash flow hedge of borrowings - interest rate swap Other liabilities $ 17 $ — Total $ 17 $ — Not designated as hedges: Mortgage banking - loan commitment Other assets $ 58 $ 30 Mortgage banking - forward sales commitment Other assets 23 15 Total $ 81 $ 45 |
Schedule of Cash Flow Hedges Included in Statement of Income | Amount of Gain(Loss) Recognized in Other Gain(Loss) Reclassifed from Accumulated Other For the three and nine months ended September 30, 2016 December 31, 2015 Location 2016 2015 Interest rate swap $ 32 $ — Interest Expense $ 12 $ — |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Income Taxes Tables | |
Schedule of Deferred Tax Assets and Liabilities | September 30, December 31, 2016 2015 (Dollars in thousands) Deferred tax assets: Federal net operating loss $ 9,535 $ 10,750 Allowance for loan losses 3,165 3,557 Deferred compensation and post employment benefits 3,396 3,498 North Carolina net operating loss 624 988 Valuation reserve for other real estate 516 516 Non-accrual interest 372 286 Tax credits and other carryforwards 376 197 Deferred gains 287 154 Unrealized losses on securities — 697 Loan basis difference 235 — Deposit premium 186 — Other 769 421 Gross deferred tax assets 19,461 21,064 Deferred tax liabilities: Fixed assets 416 499 Loan servicing rights 897 881 Deferred loan costs 996 708 Prepaid expenses 30 146 Unrealized gains on securities 1,149 — Other 598 — Total deferred tax liabilities 4,086 2,234 Net deferred tax asset $ 15,375 $ 18,830 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share Tables | |
Schedule of reconciliation of average shares outstanding | (Dollars in thousands, except per share amounts) For the Three Months For the Nine Months Numerator: Net income $ 1,800 $ 4,024 Denominator: Weighted-average common shares outstanding - basic 6,466,375 6,483,535 Effect of dilutive shares 17,851 16,663 Weighted-average common shares outstanding - diluted 6,484,226 6,500,198 Earnings per share - basic $ 0.28 $ 0.62 Earnings per share - diluted $ 0.28 $ 0.62 (Dollars in thousands, except per share amounts) For the Three Months For the Nine Months Numerator: Net income $ 2,165 $ 21,885 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 $ 0.33 $ 3.34 Earnings per share - diluted $ 0.33 $ 3.34 |
ACCUMULATED OTHER COMPREHENSI35
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Accumulated Other Comprehensive Income Loss Tables | |
Schedule of Accumulated other comprehensive income (loss) | Three Months Ended September 30, 2016 Available Held to Maturity Deferred Tax Cash flow Total (Dollars in thousands) Balance, beginning of period $ 3,030 $ (211 ) $ (284 ) $ (28 ) $ 2,507 Change in deferred tax valuation allowance attributable to net unrealized losses on investment securities — — 33 — 33 Change in net unrealized holding gains and losses on securities available for sale (1,390 ) — — — (1,390 ) Reclassification adjustment for net securities gains realized in net income (407 ) — — — (407 ) Amortization of unrealized gains and losses on securities transferred to held to maturity — 324 — — 324 Change in unrealized holding loss on cash flow hedge — — — 95 95 Income tax effect 696 (113 ) — (35 ) 548 Balance, end of period $ 1,929 $ — $ (251 ) $ 32 $ 1,710 Three Months Ended September 30, 2015 (Dollars in thousands) Balance, beginning of period $ (512 ) $ (840 ) $ (814 ) $ — $ (2,166 ) Change in deferred tax valuation allowance attributable to unrealized gains on investment securities — — 95 — 95 Change in unrealized holding gains and losses on securities available for sale 2,172 — — — 2,172 Reclassification adjustment for net securities gains realized in net income (35 ) — — — (35 ) 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 — 163 — — 163 Income tax effect (807 ) (60 ) — — (867 ) Balance, end of period $ 818 $ (737 ) $ (719 ) $ — $ (638 ) Nine Months Ended September 30, 2016 Available Held to Maturity Deferred Tax Cash flow Total (Dollars in thousands) Balance, beginning of period $ (594 ) $ (563 ) $ (579 ) $ — $ (1,736 ) Change in deferred tax valuation allowance attributable to net unrealized losses on investment securities — — 328 — 328 Change in net unrealized holding gains and losses on securities available for sale 5,115 — — — 5,115 Reclassification adjustment for net securities gains realized in net income (1,105 ) — — — (1,105 ) Amortization of unrealized gains and losses on securities transferred to held to maturity — 894 — — 894 Change in unrealized holding loss on cash flow hedge — — — 50 50 Income tax effect (1,487 ) (331 ) — (18 ) (1,836 ) Balance, end of period $ 1,929 $ — $ (251 ) $ 32 $ 1,710 Nine Months Ended September 30, 2015 (Dollars in thousands) Balance, beginning of period $ (236 ) $ (1,165 ) $ (868 ) $ — $ (2,269 ) Change in deferred tax valuation allowance attributable to unrealized gains on investment securities — — 149 — 149 Change in unrealized holding gains and losses on securities available for sale 2,020 — — — 2,020 Reclassification adjustment for net securities gains realized in net income (322 ) — — — (322 ) 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 — 705 — — 705 Income tax effect (644 ) (277 ) — — (921 ) Balance, end of period $ 818 $ (737 ) $ (719 ) $ — $ (638 ) |
Schedule of Consolidated Statements of Operations affected by amounts reclassified from accumulated other comprehensive income (loss) | Three Months Ended Nine Months Ended September 30 September 30 Income Statement (Dollars in thousands) 2016 2015 2016 2015 Line Item Effected Available-for-sale securities Gains recognized $ 407 $ 35 $ 1,105 $ 322 Gain on sale of investments, net of loss Income tax effect (150 ) (13 ) (408 ) (121 ) Income tax expense Reclassified out of AOCI, net of tax 257 22 697 201 Net income Held-to-maturity securities Amortization of unrealized losses (13 ) (163 ) (917 ) (705 ) Interest income - taxable securities Income tax effect 5 61 339 265 Income tax expense Reclassified out of AOCI, net of tax (8 ) (102 ) (578 ) (440 ) Net income Deferred tax valuation allowance Recognition of reversal of valuation allowance 33 95 328 149 Income tax expense Total reclassified out of AOCI, net of tax $ 282 $ 15 $ 447 $ (90 ) Net income |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Commitments And Contingencies Tables | |
Schedule of commitments to fund lines of credit | September 30, 2016 (Dollars in thousands) Lines of credit $ 104,586 Standby letters of credit 827 $ 105,413 |
Schedule of Outstanding commitments to originate mortgage loans | September 30, 2016 Amount Range of Rates (Dollar in thousands) Fixed $ 30,031 1.99% to 6.50% Variable 12,769 3.25% to 6.25% $ 42,800 |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures Tables | |
Summary of assets and liabilities measured at fair value on a recurring basis | September 30, 2016 Level 1 Level 2 Level 3 Total (Dollars in thousands) Trading account assets - mutual funds $ 5,133 $ — $ — $ 5,133 Securities available for sale: U.S. government agencies — 12,173 — 12,173 Municipal securities — 126,822 — 126,822 Mortgage-backed securities — 164,660 — 164,660 U.S. Treasury securities 2,550 — — 2,550 Corporate debt securities — 13,128 2,758 15,886 Mutual funds 619 — — 619 8,302 316,783 2,758 327,843 Loan servicing rights — — 2,426 2,426 Derivative assets — 67 — 67 Forward sales commitments — — 23 23 Interest rate lock commitments — — 58 58 Total assets $ 8,302 $ 316,783 $ 5,265 $ 330,350 Derivative liabilities $ — $ 17 $ — $ 17 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 |
Schedule of changes in assets measured at fair value on a recurring basis | Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (Dollars in thousands) Balance at beginning of period $ 2,510 $ 2,176 $ 2,390 $ 2,248 Corporate debt securities available for sale market valuation, net included in accumulated other comprehensive gain 2,758 — 2,758 — Loan servicing right activity, included in servicing income, net Capitalization from loans sold 185 215 444 431 Fair value adjustment (150 ) (55 ) (362 ) (300 ) Mortgage derivative gains (losses) included in Other income (38 ) 72 35 29 Balance at end of period $ 5,265 $ 2,408 $ 5,265 $ 2,408 |
Summary of assets and liabilities measured at a fair value on a nonrecurring basis | September 30, 2016 Level 1 Level 2 Level 3 Total (Dollars in thousands) Collateral dependent impaired loans: One-to four family residential $ — $ — $ 2,337 $ 2,337 Commercial real estate — — 7,348 7,348 Home equity loans and lines of credit — — 213 213 Other construction and land — — 914 914 Real estate owned: One-to four family residential — — 1,413 1,413 Commercial real estate — — 951 951 Other construction and land — — 2,260 2,260 Total assets $ — $ — $ 15,436 $ 15,436 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 |
Schedule of significant unobservable inputs used in the fair value measurements | Valuation Technique Unobservable Input General 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 5 - 35% Discount rate 12% - 14% 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 September 30, 2016 Carrying (Dollars in thousands) Amount Total Level 1 Level 2 Level 3 Assets: Cash and equivalents $ 62,029 $ 62,029 $ 62,029 $ — $ — Trading securities 5,133 5,133 5,133 — — Securities available for sale 322,710 322,710 3,169 316,783 2,758 Loans held for sale 8,428 9,230 — 9,230 — Loans receivable, net 727,403 717,524 — — 717,524 Other investments, at cost 11,436 11,436 — 11,436 — Interest receivable 4,309 4,309 — 4,309 — Bank owned life insurance 31,169 31,169 — 31,169 — Loan servicing rights 2,426 2,426 — — 2,426 Forward sales commitments 23 23 — — 23 Interest rate lock commitments 58 58 — — 58 Derivative asset 67 67 67 Liabilities: Demand deposits $ 537,514 538,019 $ — $ 538,019 $ — Time deposits 299,764 297,960 — — 297,960 Federal Home Loan Bank advances 208,500 208,683 — 208,683 — Junior subordinated debentures 14,433 14,433 — 14,433 — Other borrowings 2,620 2,812 — — 2,812 Accrued interest payable 244 244 — 244 — Derivative liability 17 17 — 17 — 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 — |
SHARE REPURCHASES (Tables)
SHARE REPURCHASES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Banking and Thrift [Abstract] | |
Schedule of Share Repurchase Activity | Period Total Number of Shares Average Price Paid per Total Number of Shares Maximum Number of January 1, 2016 to January 31, 2016 — $ — — — February 1, 2016 to February 29, 2016 40,621 $ 17.04 40,621 286,697 March 1, 2016 to March 31, 2016 33,382 $ 17.70 33,382 253,315 April 1, 2016 to April 30, 2016 5,997 $ 17.65 5,997 247,318 May 1, 2016 to September 30, 2016 — $ — — 247,318 Total year-to-date 2016 80,000 $ 17.42 80,000 247,318 |
ORGANIZATION (Details Narrative
ORGANIZATION (Details Narrative) | Dec. 31, 2015 |
Organization Details Narrative | |
Ownership percentage in Macon Capital Trust I | 100.00% |
INVESTMENT SECURITIES (Details)
INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Amortized Cost | $ 319,651 | $ 239,813 |
Gross Unrealized Gains | 3,903 | 720 |
Gross Unrealized Losses | (844) | (1,671) |
Estimated fair value | 322,710 | 238,862 |
U.S. Government Agencies [Member] | ||
Amortized Cost | 12,088 | 25,633 |
Gross Unrealized Gains | 85 | 123 |
Gross Unrealized Losses | (36) | |
Estimated fair value | 12,173 | 25,720 |
Municipal Securities [Member] | ||
Amortized Cost | 124,939 | 39,751 |
Gross Unrealized Gains | 2,110 | 311 |
Gross Unrealized Losses | (227) | (204) |
Estimated fair value | 126,822 | 39,858 |
Collateralized Mortgage Backed Securities [Member] | ||
Amortized Cost | 163,745 | 172,327 |
Gross Unrealized Gains | 1,500 | 276 |
Gross Unrealized Losses | (585) | (1,429) |
Estimated fair value | 164,660 | 171,174 |
U.S. Treasury securities [Member] | ||
Amortized Cost | 2,501 | 1,500 |
Gross Unrealized Gains | 49 | 10 |
Gross Unrealized Losses | ||
Estimated fair value | 2,550 | 1,510 |
Mutual Funds [Member] | ||
Amortized Cost | 612 | 602 |
Gross Unrealized Gains | 7 | |
Gross Unrealized Losses | (2) | |
Estimated fair value | 619 | $ 600 |
Corporate debt securities [Member] | ||
Amortized Cost | 15,766 | |
Gross Unrealized Gains | 152 | |
Gross Unrealized Losses | (32) | |
Estimated fair value | $ 15,886 |
INVESTMENT SECURITIES (Details
INVESTMENT SECURITIES (Details 2) $ in Thousands | Dec. 31, 2015USD ($) |
Amortized Cost | $ 41,164 |
Gross Unrealized Gains | 873 |
Gross Unrealized Losses | (225) |
Estimated Fair Value | 41,812 |
U.S. Government Agencies [Member] | |
Amortized Cost | 15,877 |
Gross Unrealized Gains | 645 |
Gross Unrealized Losses | (23) |
Estimated Fair Value | 16,499 |
Municipal Securities [Member] | |
Amortized Cost | 12,428 |
Gross Unrealized Gains | 199 |
Gross Unrealized Losses | (93) |
Estimated Fair Value | 12,534 |
Collateralized 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 |
Gross Unrealized Gains | 25 |
Gross Unrealized Losses | (40) |
Estimated Fair Value | $ 7,008 |
INVESTMENT SECURITIES (Detail42
INVESTMENT SECURITIES (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Investment Securities Details 3 | ||||
Beginning unrealized loss related to HTM securities previously recognized in OCI | $ 333 | $ 1,345 | $ 903 | $ 1,887 |
Additions for transfers to HTM | (8) | (163) | (578) | (705) |
Amortization of unrealized losses on HTM securities previously recognized in OCI | (324) | (163) | (894) | (705) |
Ending unrealized loss in OCI related to HTM securities previously recognized in OCI | $ 1,182 | $ 1,182 |
INVESTMENT SECURITIES (Detail43
INVESTMENT SECURITIES (Details 4) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Held to maturity, Less Than 12 Months Fair Value | $ 18,669 | |
Held to maturity, Less Than 12 Months Unrealized Losses | 225 | |
Held to maturity, Over 12 Months Fair Value | ||
Held to maturity, Over 12 Months Unrealized Losses | ||
Held to maturity, Fair Value | 18,669 | |
Held to maturity, Unrealized Losses | 225 | |
Available for sale, Less Than 12 Months Fair Value | $ 72,911 | 135,105 |
Available for sale, Less Than 12 Months Unrealized Losses | 662 | 1,140 |
Available for sale, Over 12 Months Fair Value | 15,300 | 21,852 |
Available for sale, Over 12 Months Unrealized Losses | 182 | 531 |
Available for sale, Fair Value | 88,211 | 156,957 |
Available for sale, Unrealized Losses | 844 | 1,671 |
U.S. Government Agencies [Member] | ||
Held to maturity, Less Than 12 Months Fair Value | 5,705 | |
Held to maturity, Less Than 12 Months Unrealized Losses | 23 | |
Held to maturity, Over 12 Months Fair Value | ||
Held to maturity, Over 12 Months Unrealized Losses | ||
Held to maturity, Fair Value | 5,705 | |
Held to maturity, Unrealized Losses | 23 | |
Available for sale, Less Than 12 Months Fair Value | 13,317 | |
Available for sale, Less Than 12 Months Unrealized Losses | 36 | |
Available for sale, Over 12 Months Fair Value | ||
Available for sale, Over 12 Months Unrealized Losses | ||
Available for sale, Fair Value | 13,317 | |
Available for sale, Unrealized Losses | 36 | |
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 | 16,075 | 18,769 |
Available for sale, Less Than 12 Months Unrealized Losses | 217 | 176 |
Available for sale, Over 12 Months Fair Value | 985 | 947 |
Available for sale, Over 12 Months Unrealized Losses | 10 | 28 |
Available for sale, Fair Value | 17,060 | 19,716 |
Available for sale, Unrealized Losses | 227 | 204 |
Collateralized 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 | 52,271 | 102,419 |
Available for sale, Less Than 12 Months Unrealized Losses | 413 | 926 |
Available for sale, Over 12 Months Fair Value | 14,315 | 20,905 |
Available for sale, Over 12 Months Unrealized Losses | 172 | 503 |
Available for sale, Fair Value | 66,586 | 123,324 |
Available for sale, Unrealized Losses | 585 | 1,429 |
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 | |
Available for sale, Less Than 12 Months Fair Value | 4,565 | |
Available for sale, Less Than 12 Months Unrealized Losses | 32 | |
Available for sale, Over 12 Months Fair Value | ||
Available for sale, Over 12 Months Unrealized Losses | ||
Available for sale, Fair Value | 4,565 | |
Available for sale, Unrealized Losses | $ 32 | |
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 (Detail44
INVESTMENT SECURITIES (Details 5) - Securities | Sep. 30, 2016 | Dec. 31, 2015 |
Number of securities less than 12 months | 47 | 146 |
Number of securities more than 12 months | 14 | 17 |
Number of securities | 61 | 163 |
U.S. Government Agencies [Member] | ||
Number of securities less than 12 months | 13 | |
Number of securities more than 12 months | ||
Number of securities | 13 | |
Municipal Securities [Member] | ||
Number of securities less than 12 months | 13 | 51 |
Number of securities more than 12 months | 2 | 2 |
Number of securities | 15 | 53 |
Collateralized Mortgage Backed Securities [Member] | ||
Number of securities less than 12 months | 29 | 71 |
Number of securities more than 12 months | 12 | 15 |
Number of securities | 41 | 86 |
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 | 5 | 9 |
Number of securities more than 12 months | ||
Number of securities | 5 | 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 (Detail45
INVESTMENT SECURITIES (Details 6) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Investment Securities Details 6 | |||||
Gross proceeds | $ 39,619 | $ 7,941 | $ 115,328 | $ 33,848 | |
Gross realized gains | 407 | 35 | 1,139 | 342 | |
Gross realized losses | 34 | $ 20 | |||
Securities pledged against deposits | $ 138,700 | $ 138,700 | $ 69,600 |
INVESTMENT SECURITIES (Detail46
INVESTMENT SECURITIES (Details 7) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Investment Securities Details 6 | ||
Available for sale, Less than 1 year, Amortized Cost | $ 3,889 | |
Available for sale, Over 1 year through 5 years, Amortized Cost | 18,034 | |
Available for sale, After 5 years through 10 years, Amortized Cost | 29,095 | |
Available for sale, Over 10 years, Amortized Cost | 104,888 | |
Available for sale, Before Amortized Cost Available for sale, Mortgage-backed securities, Amortized Cost | 155,906 | |
Available for sale, Mortgage-backed securities, Amortized Cost | 163,745 | |
Available for sale, Total, Amortized Cost | 319,651 | |
Available for Sale, Less than 1 year, Fair Value | 3,904 | |
Available for Sale, Over 1 year through 5 years, Fair Value | 18,286 | |
Available for Sale, After 5 years through 10 years, Fair Value | 29,458 | |
Available for Sale, Over 10 years, Fair Value | 106,402 | |
Available for sale, Before Amortized Cost Available for sale, Mortgage-backed securities, Fair Value | 158,050 | |
Available for Sale, Mortgage-backed securities, Fair Value | 164,660 | |
Available for Sale, Total, Fair Value | $ 322,710 | |
Held to Maturity, Total, Amortized Cost | $ 41,164 | |
Held to Maturity, Total, Fair Value | $ 41,812 |
ACQUISITION ACTIVITIES (Details
ACQUISITION ACTIVITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Apr. 02, 2016 | Dec. 31, 2015 | |
Liabilities | ||||
Goodwill | $ 2,055 | $ 711 | ||
As recorded by Old Town Bank [Member] | ||||
Assets | ||||
Cash and cash equivalents | $ 7,573 | |||
Investments | 30,882 | |||
Loans | 64,573 | |||
Fixed assets | 3,414 | |||
Interest receivable | 552 | |||
Core deposit intangible | ||||
Other real estate owned | 880 | |||
Deferred tax asset | 259 | |||
Other assets | 938 | |||
Total assets acquired | 109,071 | |||
Liabilities | ||||
Deposits | 88,059 | |||
FHLB advances | 9,000 | |||
Accrued interest payable | 30 | |||
Other liabilities | 125 | |||
Total liabilities assumed | 97,214 | |||
Excess of assets acquired over liabilities assumed | 11,857 | |||
Fair Value Adjustments [Member] | ||||
Assets | ||||
Cash and cash equivalents | [1] | |||
Investments | [1] | 246 | ||
Loans | [1] | 272 | ||
Fixed assets | [1] | (22) | ||
Interest receivable | [1] | |||
Core deposit intangible | [1] | 530 | ||
Other real estate owned | [1] | 43 | ||
Deferred tax asset | [1] | 186 | ||
Other assets | [1] | (306) | ||
Total assets acquired | [1] | 949 | ||
Liabilities | ||||
Deposits | [1] | 648 | ||
FHLB advances | [1] | 25 | ||
Accrued interest payable | [1] | |||
Other liabilities | [1] | (9) | ||
Total liabilities assumed | [1] | 664 | ||
Excess of assets acquired over liabilities assumed | [1] | 285 | ||
As recorded by the Company [Member] | ||||
Assets | ||||
Cash and cash equivalents | 7,573 | |||
Investments | 31,128 | |||
Loans | 64,845 | |||
Fixed assets | 3,392 | |||
Interest receivable | 552 | |||
Core deposit intangible | 530 | |||
Other real estate owned | 923 | |||
Deferred tax asset | 445 | |||
Other assets | 632 | |||
Total assets acquired | 110,020 | |||
Liabilities | ||||
Deposits | 88,707 | |||
FHLB advances | 9,025 | |||
Accrued interest payable | 30 | |||
Other liabilities | 116 | |||
Total liabilities assumed | 97,878 | |||
Excess of assets acquired over liabilities assumed | 12,142 | |||
Purchase price | 13,486 | |||
Goodwill | $ 1,344 | |||
[1] | Fair values are subject to refinement for a period not to exceed one year after the closing date of an acquisition as information relative to closing date fair values becomes available. In particular, the fair value of collateral dependent loans and other real estate owned may change to the extent that the Company receives updated appraisals indicating changes in valuation assumptions at acquisition. |
LOANS RECEIVABLE (Details)
LOANS RECEIVABLE (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, gross | $ 729,600 | $ 626,341 |
Less: Net deferred loan fees | (805) | (1,388) |
Unamortized premium | 707 | 557 |
Unamortized discount | (2,099) | (1,438) |
Loans receivable, net | 727,403 | 624,072 |
One To Four Family Residential [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, gross | 271,358 | 248,633 |
Commercial Real Estate Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, gross | 283,521 | 214,413 |
Home Equity Line of Credit [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, gross | 50,844 | 53,446 |
Residential Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, gross | 16,962 | 7,848 |
Other Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, gross | 59,136 | 57,316 |
Real Estate Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, gross | 681,821 | 581,656 |
Commercial Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, gross | 43,397 | 41,046 |
Consumer Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, gross | 4,382 | 3,639 |
Commercial and Consumer Loan [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, gross | $ 47,779 | $ 44,685 |
LOANS RECEIVABLE (Detail Narrat
LOANS RECEIVABLE (Detail Narrative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Restructuring of loan | $ 13,091 | $ 13,091 | $ 14,601 | ||
Federal Deposit Insurance Corporation [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Discount on loans purchased | 1,092 | $ 484 | |||
Federal Reserve Bank Advances [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans pledged as collateral to secure funding amount | 86,900 | 86,900 | 88,400 | ||
Federal Home Loan Bank of Atlanta [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans pledged as collateral to secure funding amount | $ 130,100 | $ 130,100 | $ 119,500 |
LOANS RECEIVABLE (Details 2)
LOANS RECEIVABLE (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Discount on purchased loans, beginning of period | $ 1,388 | |||
Discount on purchased loans, end of period | $ 805 | 805 | ||
Federal Deposit Insurance Corporation [Member] | ||||
Discount on purchased loans, beginning of period | 2,295 | $ 1,499 | 1,438 | $ 1,487 |
Additional discount for new purchases | 1,092 | 484 | ||
Accretion | (196) | (73) | (431) | (250) |
Discount applied to charge-offs | (295) | |||
Discount on purchased loans, end of period | $ 2,099 | $ 1,426 | $ 2,099 | $ 1,426 |
ALLOWANCE FOR LOAN LOSSES (Deta
ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | $ 8,940 | $ 9,451 | $ 9,461 | $ 11,072 |
Provision | 100 | 100 | (1,500) | |
Charge-offs | (289) | (79) | (1,421) | (838) |
Recoveries | 353 | 261 | 964 | 899 |
Balance, end of period | 9,104 | 9,633 | 9,104 | 9,633 |
One To Four Family Residential [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 2,679 | 2,260 | 2,455 | 2,983 |
Provision | (376) | 272 | (83) | (335) |
Charge-offs | (19) | (13) | (117) | (251) |
Recoveries | 27 | 108 | 56 | 230 |
Balance, end of period | 2,311 | 2,627 | 2,311 | 2,627 |
Commercial Real Estate Portfolio Segment [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 3,379 | 2,607 | 3,221 | 2,717 |
Provision | 494 | 325 | 1,081 | 93 |
Charge-offs | (431) | (45) | ||
Recoveries | 170 | 172 | 167 | |
Balance, end of period | 4,044 | 2,932 | 4,044 | 2,932 |
Home Equity Line of Credit [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 887 | 1,080 | 1,097 | 1,333 |
Provision | (137) | 37 | (351) | 128 |
Charge-offs | (28) | (22) | (158) | (391) |
Recoveries | 44 | 1 | 178 | 26 |
Balance, end of period | 766 | 1,096 | 766 | 1,096 |
Residential Construction [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 175 | 344 | 278 | 510 |
Provision | (60) | (105) | (195) | (273) |
Charge-offs | ||||
Recoveries | 1 | 32 | 3 | |
Balance, end of period | 115 | 240 | 115 | 240 |
Other Portfolio Segment [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 1,064 | 1,666 | 1,400 | 2,936 |
Provision | (95) | (292) | (78) | (1,642) |
Charge-offs | (44) | (28) | (481) | (114) |
Recoveries | 28 | 50 | 112 | 216 |
Balance, end of period | 953 | 1,396 | 953 | 1,396 |
Commercial Portfolio Segment [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 530 | 680 | 603 | 308 |
Provision | 79 | (213) | (106) | 150 |
Charge-offs | (52) | (62) | (1) | |
Recoveries | 13 | 19 | 135 | 29 |
Balance, end of period | 569 | 486 | 569 | 486 |
Consumer Portfolio Segment [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 226 | 814 | 407 | 285 |
Provision | 195 | (24) | (168) | 379 |
Charge-offs | (146) | (16) | (172) | (36) |
Recoveries | 71 | 82 | 279 | 228 |
Balance, end of period | $ 346 | $ 856 | $ 346 | $ 856 |
ALLOWANCE FOR LOAN LOSSES (De52
ALLOWANCE FOR LOAN LOSSES (Details 2) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Allowance for loan losses | ||||||
Individually evaluated for impairment | $ 514 | $ 510 | ||||
Collectively evaluated for impairment | 8,590 | 8,951 | ||||
Balance, end of period | 9,104 | $ 8,940 | 9,461 | $ 9,633 | $ 9,451 | $ 11,072 |
Loans Receivable | ||||||
Individually evaluated for impairment | 15,293 | 17,468 | ||||
Collectively evaluated for impairment | 714,307 | 608,873 | ||||
Total Loans Receivable | 729,600 | 626,341 | ||||
One To Four Family Residential [Member] | ||||||
Allowance for loan losses | ||||||
Individually evaluated for impairment | 219 | 344 | ||||
Collectively evaluated for impairment | 2,092 | 2,111 | ||||
Balance, end of period | 2,311 | 2,679 | 2,455 | 2,627 | 2,260 | 2,983 |
Loans Receivable | ||||||
Individually evaluated for impairment | 3,838 | 6,315 | ||||
Collectively evaluated for impairment | 267,520 | 242,318 | ||||
Total Loans Receivable | 271,358 | 248,633 | ||||
Commercial Real Estate Portfolio Segment [Member] | ||||||
Allowance for loan losses | ||||||
Individually evaluated for impairment | 99 | 61 | ||||
Collectively evaluated for impairment | 3,945 | 3,160 | ||||
Balance, end of period | 4,044 | 3,379 | 3,221 | 2,932 | 2,607 | 2,717 |
Loans Receivable | ||||||
Individually evaluated for impairment | 9,098 | 9,013 | ||||
Collectively evaluated for impairment | 274,423 | 205,400 | ||||
Total Loans Receivable | 283,521 | 214,413 | ||||
Home Equity Line of Credit [Member] | ||||||
Allowance for loan losses | ||||||
Individually evaluated for impairment | 4 | 6 | ||||
Collectively evaluated for impairment | 762 | 1,091 | ||||
Balance, end of period | 766 | 887 | 1,097 | 1,096 | 1,080 | 1,333 |
Loans Receivable | ||||||
Individually evaluated for impairment | 313 | 313 | ||||
Collectively evaluated for impairment | 50,531 | 53,133 | ||||
Total Loans Receivable | 50,844 | 53,446 | ||||
Residential Construction [Member] | ||||||
Allowance for loan losses | ||||||
Individually evaluated for impairment | ||||||
Collectively evaluated for impairment | 115 | 278 | ||||
Balance, end of period | 115 | 175 | 278 | 240 | 344 | 510 |
Loans Receivable | ||||||
Individually evaluated for impairment | ||||||
Collectively evaluated for impairment | 16,962 | 7,848 | ||||
Total Loans Receivable | 16,962 | 7,848 | ||||
Other Portfolio Segment [Member] | ||||||
Allowance for loan losses | ||||||
Individually evaluated for impairment | 164 | 61 | ||||
Collectively evaluated for impairment | 789 | 1,339 | ||||
Balance, end of period | 953 | 1,064 | 1,400 | 1,396 | 1,666 | 2,936 |
Loans Receivable | ||||||
Individually evaluated for impairment | 1,737 | 1,509 | ||||
Collectively evaluated for impairment | 57,399 | 55,807 | ||||
Total Loans Receivable | 59,136 | 57,316 | ||||
Commercial Portfolio Segment [Member] | ||||||
Allowance for loan losses | ||||||
Individually evaluated for impairment | 28 | 38 | ||||
Collectively evaluated for impairment | 541 | 565 | ||||
Balance, end of period | 569 | 530 | 603 | 486 | 680 | 308 |
Loans Receivable | ||||||
Individually evaluated for impairment | 307 | 318 | ||||
Collectively evaluated for impairment | 43,090 | 40,728 | ||||
Total Loans Receivable | 43,397 | 41,046 | ||||
Consumer Portfolio Segment [Member] | ||||||
Allowance for loan losses | ||||||
Individually evaluated for impairment | ||||||
Collectively evaluated for impairment | 346 | 407 | ||||
Balance, end of period | 346 | $ 226 | 407 | $ 856 | $ 814 | $ 285 |
Loans Receivable | ||||||
Individually evaluated for impairment | ||||||
Collectively evaluated for impairment | 4,382 | 3,639 | ||||
Total Loans Receivable | $ 4,382 | $ 3,639 |
ALLOWANCE FOR LOAN LOSSES (De53
ALLOWANCE FOR LOAN LOSSES (Details 3) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Loans Reported amount | $ 729,600 | $ 626,341 |
One To Four Family Residential [Member] | ||
Loans Reported amount | 271,358 | 248,633 |
Commercial Portfolio Segment [Member] | ||
Loans Reported amount | 43,397 | 41,046 |
Home Equity Line of Credit [Member] | ||
Loans Reported amount | 50,844 | 53,446 |
Residential Construction [Member] | ||
Loans Reported amount | 16,962 | 7,848 |
Other Portfolio Segment [Member] | ||
Loans Reported amount | 59,136 | 57,316 |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans Reported amount | 283,521 | 214,413 |
Consumer Portfolio Segment [Member] | ||
Loans Reported amount | 4,382 | 3,639 |
Graded Loan [Member] | ||
Loans Reported amount | 524,494 | 416,627 |
Graded Loan [Member] | One To Four Family Residential [Member] | ||
Loans Reported amount | 132,519 | 105,584 |
Graded Loan [Member] | Commercial Portfolio Segment [Member] | ||
Loans Reported amount | 43,243 | 40,784 |
Graded Loan [Member] | Home Equity Line of Credit [Member] | ||
Loans Reported amount | 8,777 | 9,967 |
Graded Loan [Member] | Residential Construction [Member] | ||
Loans Reported amount | 13,016 | 5,014 |
Graded Loan [Member] | Other Portfolio Segment [Member] | ||
Loans Reported amount | 44,580 | 40,490 |
Graded Loan [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans Reported amount | 281,974 | 214,195 |
Graded Loan [Member] | Consumer Portfolio Segment [Member] | ||
Loans Reported amount | 385 | 593 |
Graded Loan [Member] | Loan Grade One [Member] | ||
Loans Reported amount | 11,147 | 10,401 |
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 | 10,504 | 1,738 |
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 | 9,409 | 65 |
Graded Loan [Member] | Loan Grade One [Member] | Consumer Portfolio Segment [Member] | ||
Loans Reported amount | ||
Graded Loan [Member] | Loan Grade Two [Member] | ||
Loans Reported amount | 5,803 | 4,545 |
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 | 1,476 | 99 |
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 | 4,327 | 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 | 57,308 | 35,010 |
Graded Loan [Member] | Loan Grade Three [Member] | One To Four Family Residential [Member] | ||
Loans Reported amount | 28,434 | 18,518 |
Graded Loan [Member] | Loan Grade Three [Member] | Commercial Portfolio Segment [Member] | ||
Loans Reported amount | 2,703 | 1,734 |
Graded Loan [Member] | Loan Grade Three [Member] | Home Equity Line of Credit [Member] | ||
Loans Reported amount | 1,593 | 1,358 |
Graded Loan [Member] | Loan Grade Three [Member] | Residential Construction [Member] | ||
Loans Reported amount | 524 | 525 |
Graded Loan [Member] | Loan Grade Three [Member] | Other Portfolio Segment [Member] | ||
Loans Reported amount | 1,542 | 1,479 |
Graded Loan [Member] | Loan Grade Three [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans Reported amount | 22,512 | 11,396 |
Graded Loan [Member] | Loan Grade Three [Member] | Consumer Portfolio Segment [Member] | ||
Loans Reported amount | ||
Graded Loan [Member] | Loan Grade Four [Member] | ||
Loans Reported amount | 265,238 | 157,918 |
Graded Loan [Member] | Loan Grade Four [Member] | One To Four Family Residential [Member] | ||
Loans Reported amount | 73,505 | 46,942 |
Graded Loan [Member] | Loan Grade Four [Member] | Commercial Portfolio Segment [Member] | ||
Loans Reported amount | 25,384 | 18,586 |
Graded Loan [Member] | Loan Grade Four [Member] | Home Equity Line of Credit [Member] | ||
Loans Reported amount | 3,569 | 1,961 |
Graded Loan [Member] | Loan Grade Four [Member] | Residential Construction [Member] | ||
Loans Reported amount | 10,271 | 2,036 |
Graded Loan [Member] | Loan Grade Four [Member] | Other Portfolio Segment [Member] | ||
Loans Reported amount | 20,998 | 13,850 |
Graded Loan [Member] | Loan Grade Four [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans Reported amount | 131,459 | 74,542 |
Graded Loan [Member] | Loan Grade Four [Member] | Consumer Portfolio Segment [Member] | ||
Loans Reported amount | 52 | 1 |
Graded Loan [Member] | Loan Grade Five [Member] | ||
Loans Reported amount | 154,658 | 172,080 |
Graded Loan [Member] | Loan Grade Five [Member] | One To Four Family Residential [Member] | ||
Loans Reported amount | 26,155 | 33,886 |
Graded Loan [Member] | Loan Grade Five [Member] | Commercial Portfolio Segment [Member] | ||
Loans Reported amount | 11,221 | 9,274 |
Graded Loan [Member] | Loan Grade Five [Member] | Home Equity Line of Credit [Member] | ||
Loans Reported amount | 3,615 | 6,648 |
Graded Loan [Member] | Loan Grade Five [Member] | Residential Construction [Member] | ||
Loans Reported amount | 2,051 | 1,347 |
Graded Loan [Member] | Loan Grade Five [Member] | Other Portfolio Segment [Member] | ||
Loans Reported amount | 18,260 | 22,864 |
Graded Loan [Member] | Loan Grade Five [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans Reported amount | 93,023 | 97,469 |
Graded Loan [Member] | Loan Grade Five [Member] | Consumer Portfolio Segment [Member] | ||
Loans Reported amount | 333 | 592 |
Graded Loan [Member] | Loan Grade Six [Member] | ||
Loans Reported amount | 18,582 | 19,195 |
Graded Loan [Member] | Loan Grade Six [Member] | One To Four Family Residential [Member] | ||
Loans Reported amount | 2,695 | 2,903 |
Graded Loan [Member] | Loan Grade Six [Member] | Commercial Portfolio Segment [Member] | ||
Loans Reported amount | 269 | 297 |
Graded Loan [Member] | Loan Grade Six [Member] | Home Equity Line of Credit [Member] | ||
Loans Reported amount | ||
Graded Loan [Member] | Loan Grade Six [Member] | Residential Construction [Member] | ||
Loans Reported amount | 170 | 1,106 |
Graded Loan [Member] | Loan Grade Six [Member] | Other Portfolio Segment [Member] | ||
Loans Reported amount | 2,467 | 1,718 |
Graded Loan [Member] | Loan Grade Six [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans Reported amount | 12,981 | 13,171 |
Graded Loan [Member] | Loan Grade Six [Member] | Consumer Portfolio Segment [Member] | ||
Loans Reported amount | ||
Graded Loan [Member] | Loan Grade Seven [Member] | ||
Loans Reported amount | 11,758 | 17,478 |
Graded Loan [Member] | Loan Grade Seven [Member] | One To Four Family Residential [Member] | ||
Loans Reported amount | 1,730 | 3,335 |
Graded Loan [Member] | Loan Grade Seven [Member] | Commercial Portfolio Segment [Member] | ||
Loans Reported amount | 452 | 458 |
Graded Loan [Member] | Loan Grade Seven [Member] | Home Equity Line of Credit [Member] | ||
Loans Reported amount | ||
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 | 1,313 | 579 |
Graded Loan [Member] | Loan Grade Seven [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans Reported amount | 8,263 | 13,106 |
Graded Loan [Member] | Loan Grade Seven [Member] | Consumer Portfolio Segment [Member] | ||
Loans Reported amount | ||
UnGraded Loan [Member] | ||
Loans Reported amount | 205,106 | 209,714 |
UnGraded Loan [Member] | One To Four Family Residential [Member] | ||
Loans Reported amount | 138,839 | 143,049 |
UnGraded Loan [Member] | Commercial Portfolio Segment [Member] | ||
Loans Reported amount | 154 | 262 |
UnGraded Loan [Member] | Home Equity Line of Credit [Member] | ||
Loans Reported amount | 42,067 | 43,479 |
UnGraded Loan [Member] | Residential Construction [Member] | ||
Loans Reported amount | 3,946 | 2,834 |
UnGraded Loan [Member] | Other Portfolio Segment [Member] | ||
Loans Reported amount | 14,556 | 16,826 |
UnGraded Loan [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans Reported amount | 1,547 | 218 |
UnGraded Loan [Member] | Consumer Portfolio Segment [Member] | ||
Loans Reported amount | 3,997 | 3,046 |
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | ||
Loans Reported amount | 1,446 | 1,718 |
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | One To Four Family Residential [Member] | ||
Loans Reported amount | 1,060 | 1,278 |
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 | 116 | 321 |
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Residential Construction [Member] | ||
Loans Reported amount | 216 | |
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Other Portfolio Segment [Member] | ||
Loans Reported amount | 54 | 119 |
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans Reported amount | ||
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Consumer Portfolio Segment [Member] | ||
Loans Reported amount | ||
UnGraded Loan [Member] | Performing Financing Receivable [Member] | ||
Loans Reported amount | 203,660 | 207,996 |
UnGraded Loan [Member] | Performing Financing Receivable [Member] | One To Four Family Residential [Member] | ||
Loans Reported amount | 137,779 | 141,771 |
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Commercial Portfolio Segment [Member] | ||
Loans Reported amount | 154 | 262 |
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Home Equity Line of Credit [Member] | ||
Loans Reported amount | 41,951 | 43,158 |
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Residential Construction [Member] | ||
Loans Reported amount | 3,730 | 2,834 |
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Other Portfolio Segment [Member] | ||
Loans Reported amount | 14,502 | 16,707 |
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans Reported amount | 1,547 | 218 |
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Consumer Portfolio Segment [Member] | ||
Loans Reported amount | $ 3,997 | $ 3,046 |
ALLOWANCE FOR LOAN LOSSES (De54
ALLOWANCE FOR LOAN LOSSES (Details 4) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | $ 8,479 | $ 8,409 |
60-89 Days Past | 720 | 1,699 |
90 Days and Over Past Due | 4,040 | 2,270 |
Total Past Due | 13,239 | 12,378 |
Current | 716,361 | 613,963 |
Total Loans Receivable | 729,600 | 626,341 |
One To Four Family Residential [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 4,865 | 5,610 |
60-89 Days Past | 379 | 1,260 |
90 Days and Over Past Due | 510 | 1,205 |
Total Past Due | 5,754 | 8,075 |
Current | 265,604 | 240,558 |
Total Loans Receivable | 271,358 | 248,633 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 3,088 | 1,585 |
60-89 Days Past | 128 | |
90 Days and Over Past Due | 2,293 | 605 |
Total Past Due | 5,509 | 2,190 |
Current | 278,012 | 212,223 |
Total Loans Receivable | 283,521 | 214,413 |
Home Equity Line of Credit [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 240 | 369 |
60-89 Days Past | 25 | 38 |
90 Days and Over Past Due | 116 | 322 |
Total Past Due | 381 | 729 |
Current | 50,463 | 52,717 |
Total Loans Receivable | 50,844 | 53,446 |
Residential Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | ||
60-89 Days Past | 171 | |
90 Days and Over Past Due | 216 | |
Total Past Due | 387 | |
Current | 16,575 | 7,848 |
Total Loans Receivable | 16,962 | 7,848 |
Other Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 156 | 208 |
60-89 Days Past | 397 | |
90 Days and Over Past Due | 905 | 138 |
Total Past Due | 1,061 | 743 |
Current | 58,075 | 56,573 |
Total Loans Receivable | 59,136 | 57,316 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 125 | 625 |
60-89 Days Past | 16 | |
90 Days and Over Past Due | ||
Total Past Due | 141 | 625 |
Current | 43,256 | 40,421 |
Total Loans Receivable | 43,397 | 41,046 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 5 | 12 |
60-89 Days Past | 1 | 4 |
90 Days and Over Past Due | ||
Total Past Due | 6 | 16 |
Current | 4,376 | 3,623 |
Total Loans Receivable | $ 4,382 | $ 3,639 |
ALLOWANCE FOR LOAN LOSSES (De55
ALLOWANCE FOR LOAN LOSSES (Details 5) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Impaired [Line Items] | ||
Recorded Balance, without a valuation allowance | $ 10,713 | $ 12,386 |
Unpaid Principal Balance, without a valuation allowance | 12,615 | 14,358 |
Recorded Balance, Recorded Balance, with a valuation allowance | 4,580 | 5,082 |
Unpaid Principal Balance, with a valuation allowance | 4,675 | 5,082 |
Recorded Balance | 15,293 | 17,468 |
Unpaid Principal Balance | 17,290 | 19,440 |
Specific Allowance | 514 | 510 |
One To Four Family Residential [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Balance, without a valuation allowance | 2,337 | 4,289 |
Unpaid Principal Balance, without a valuation allowance | 2,391 | 4,403 |
Recorded Balance, Recorded Balance, with a valuation allowance | 1,500 | 2,026 |
Unpaid Principal Balance, with a valuation allowance | 1,500 | 2,026 |
Recorded Balance | 3,837 | 6,315 |
Unpaid Principal Balance | 3,891 | 6,429 |
Specific Allowance | 219 | 344 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Balance, without a valuation allowance | 7,348 | 7,226 |
Unpaid Principal Balance, without a valuation allowance | 8,979 | 8,809 |
Recorded Balance, Recorded Balance, with a valuation allowance | 1,751 | 1,787 |
Unpaid Principal Balance, with a valuation allowance | 1,751 | 1,787 |
Recorded Balance | 9,099 | 9,013 |
Unpaid Principal Balance | 10,730 | 10,596 |
Specific Allowance | 99 | 61 |
Home Equity Line of Credit [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Balance, without a valuation allowance | 213 | 213 |
Unpaid Principal Balance, without a valuation allowance | 328 | 328 |
Recorded Balance, Recorded Balance, with a valuation allowance | 100 | 100 |
Unpaid Principal Balance, with a valuation allowance | 100 | 100 |
Recorded Balance | 313 | 313 |
Unpaid Principal Balance | 428 | 428 |
Specific Allowance | 4 | 6 |
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 | 815 | 658 |
Unpaid Principal Balance, without a valuation allowance | 917 | 818 |
Recorded Balance, Recorded Balance, with a valuation allowance | 922 | 851 |
Unpaid Principal Balance, with a valuation allowance | 1,017 | 851 |
Recorded Balance | 1,737 | 1,509 |
Unpaid Principal Balance | 1,934 | 1,669 |
Specific Allowance | 164 | 61 |
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 | 307 | 318 |
Unpaid Principal Balance, with a valuation allowance | 307 | 318 |
Recorded Balance | 307 | 318 |
Unpaid Principal Balance | 307 | 318 |
Specific Allowance | $ 28 | $ 38 |
ALLOWANCE FOR LOAN LOSSES (De56
ALLOWANCE FOR LOAN LOSSES (Details 6) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Average Investment in Impaired Loans, without a valuation allowance | $ 12,614 | $ 13,158 | $ 12,705 | $ 13,482 |
Interest Income Recognized, without a valuation allowance | 61 | 138 | 183 | 413 |
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance | 4,676 | 5,918 | 4,732 | 7,271 |
Interest Income Recognized, with a valuation allowance | 51 | 59 | 154 | 175 |
Average Investment in Impaired Loans | 17,290 | 19,076 | 17,437 | 20,753 |
Interest Income Recognized | 112 | 197 | 337 | 588 |
One To Four Family Residential [Member] | ||||
Average Investment in Impaired Loans, without a valuation allowance | 2,391 | 3,941 | 2,415 | 4,215 |
Interest Income Recognized, without a valuation allowance | 23 | 45 | 70 | 127 |
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance | 1,500 | 2,648 | 1,518 | 3,190 |
Interest Income Recognized, with a valuation allowance | 17 | 22 | 51 | 66 |
Average Investment in Impaired Loans | 3,891 | 6,589 | 3,933 | 7,405 |
Interest Income Recognized | 40 | 67 | 121 | 193 |
Commercial Real Estate Portfolio Segment [Member] | ||||
Average Investment in Impaired Loans, without a valuation allowance | 8,978 | 8,330 | 9,036 | 8,374 |
Interest Income Recognized, without a valuation allowance | 29 | 79 | 86 | 257 |
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance | 1,752 | 1,805 | 1,769 | 1,813 |
Interest Income Recognized, with a valuation allowance | 20 | 20 | 60 | 61 |
Average Investment in Impaired Loans | 10,730 | 10,135 | 10,805 | 10,187 |
Interest Income Recognized | 49 | 99 | 146 | 318 |
Home Equity Line of Credit [Member] | ||||
Average Investment in Impaired Loans, without a valuation allowance | 328 | 213 | 328 | 213 |
Interest Income Recognized, without a valuation allowance | 2 | 6 | 7 | 7 |
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance | 100 | 100 | 100 | 100 |
Interest Income Recognized, with a valuation allowance | 1 | 1 | 3 | 3 |
Average Investment in Impaired Loans | 428 | 313 | 428 | 313 |
Interest Income Recognized | 3 | 7 | 10 | 10 |
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 | 917 | 674 | 926 | 680 |
Interest Income Recognized, without a valuation allowance | 7 | 8 | 20 | 22 |
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance | 1,017 | 1,043 | 1,032 | 1,843 |
Interest Income Recognized, with a valuation allowance | 9 | 11 | 26 | 31 |
Average Investment in Impaired Loans | 1,934 | 1,717 | 1,958 | 2,523 |
Interest Income Recognized | 16 | 19 | 46 | 53 |
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 | 307 | 322 | 313 | 325 |
Interest Income Recognized, with a valuation allowance | 4 | 5 | 14 | 14 |
Average Investment in Impaired Loans | 307 | 322 | 313 | 325 |
Interest Income Recognized | $ 4 | $ 5 | $ 14 | $ 14 |
ALLOWANCE FOR LOAN LOSSES (De57
ALLOWANCE FOR LOAN LOSSES (Details 7) - Nonperforming Financing Receivable [Member] - Loans [Member] - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Non Performing Loan Receivables and Other Assets [Line Items] | ||
Finance receivable, non-accrual | $ 7,131 | $ 7,280 |
One To Four Family Residential [Member] | ||
Non Performing Loan Receivables and Other Assets [Line Items] | ||
Finance receivable, non-accrual | 1,245 | 2,893 |
Commercial Real Estate Portfolio Segment [Member] | ||
Non Performing Loan Receivables and Other Assets [Line Items] | ||
Finance receivable, non-accrual | 4,334 | 3,628 |
Home Equity Line of Credit [Member] | ||
Non Performing Loan Receivables and Other Assets [Line Items] | ||
Finance receivable, non-accrual | 114 | 320 |
Other Portfolio Segment [Member] | ||
Non Performing Loan Receivables and Other Assets [Line Items] | ||
Finance receivable, non-accrual | 1,393 | 384 |
Commercial Portfolio Segment [Member] | ||
Non Performing Loan Receivables and Other Assets [Line Items] | ||
Finance receivable, non-accrual | 45 | 55 |
Consumer Portfolio Segment [Member] | ||
Non Performing Loan Receivables and Other Assets [Line Items] | ||
Finance receivable, non-accrual |
ALLOWANCE FOR LOAN LOSSES (De58
ALLOWANCE FOR LOAN LOSSES (Details 8) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Modifications [Line Items] | ||
TDR loans | $ 13,091 | $ 14,601 |
Performing Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 9,953 | 11,206 |
Nonperforming Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 3,793 | 3,395 |
One To Four Family Residential [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 6,760 | 4,393 |
One To Four Family Residential [Member] | Performing Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 3,583 | 4,182 |
One To Four Family Residential [Member] | Nonperforming Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 210 | 211 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 313 | 8,056 |
Commercial Real Estate Portfolio Segment [Member] | Performing Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 4,356 | 5,134 |
Commercial Real Estate Portfolio Segment [Member] | Nonperforming Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 2,404 | 2,922 |
Home Equity Line of Credit [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 1,604 | 313 |
Home Equity Line of Credit [Member] | Performing Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 313 | 313 |
Home Equity Line of Credit [Member] | Nonperforming Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | ||
Other Portfolio Segment [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 314 | 1,509 |
Other Portfolio Segment [Member] | Performing Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 1,394 | 1,259 |
Other Portfolio Segment [Member] | Nonperforming Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 210 | 250 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 12,784 | 330 |
Commercial Portfolio Segment [Member] | Performing Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 307 | 318 |
Commercial Portfolio Segment [Member] | Nonperforming Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | $ 7 | 12 |
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 |
ALLOWANCE FOR LOAN LOSSES (De59
ALLOWANCE FOR LOAN LOSSES (Details 9) - Forgiveness of Principal [Member] $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($)LoansModifications | |
Number of Loans | LoansModifications | 1 |
Pre-modification Outstanding Recorded Investment | $ 1,988 |
Post-modification Outstanding Recorded Investment | $ 1,693 |
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 |
REAL ESTATE OWNED (Details)
REAL ESTATE OWNED (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Real Estate Owned Details | ||||||
Real estate owned, gross | $ 6,019 | $ 6,741 | ||||
Less: Valuation allowance | 1,395 | $ 1,356 | 1,372 | $ 1,549 | $ 1,558 | $ 1,760 |
Real estate owned, net | $ 4,624 | $ 5,369 |
REAL ESTATE OWNED (Details 2)
REAL ESTATE OWNED (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Real Estate Owned Valuation Allowance [Roll Forward] | |||||
Valuation allowance, beginning | $ 1,356 | $ 1,558 | $ 1,372 | $ 1,760 | |
Provision charged to expense | 67 | 80 | 575 | 171 | |
Reduction due to disposal | (28) | (89) | (552) | (382) | |
Valuation allowance, ending | 1,395 | $ 1,549 | 1,395 | $ 1,549 | |
Real estate acquired through foreclosure | 6,019 | 6,019 | $ 6,741 | ||
Residential Real Estate [Member] | |||||
Real Estate Owned Valuation Allowance [Roll Forward] | |||||
Real estate acquired through foreclosure | 500 | 500 | 700 | ||
Other real estate | $ 1,400 | $ 1,400 | $ 1,400 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Deposits By Type [Line Items] | |||||
Balance | $ 837,278 | $ 837,278 | $ 837,278 | $ 837,278 | $ 716,617 |
Interest Expense | 1,007 | 1,014 | 2,981 | 3,372 | 4,334 |
Interest-bearing Deposits [Member] | |||||
Deposits By Type [Line Items] | |||||
Balance | 115,874 | 115,874 | 115,874 | 115,874 | 103,198 |
Interest Expense | 127 | 108 | 136 | ||
Money Market Funds [Member] | |||||
Deposits By Type [Line Items] | |||||
Balance | 240,990 | 240,990 | 240,990 | 240,990 | 180,377 |
Interest Expense | 548 | 425 | 558 | ||
Savings Deposits [Member] | |||||
Deposits By Type [Line Items] | |||||
Balance | 38,476 | 38,476 | 38,476 | 38,476 | 35,838 |
Interest Expense | 38 | 24 | 33 | ||
Time deposit [Member] | |||||
Deposits By Type [Line Items] | |||||
Balance | 299,764 | 299,764 | 299,764 | 299,764 | 276,142 |
Interest Expense | 2,268 | 2,815 | 3,607 | ||
Noninterest-bearing demand [Member] | |||||
Deposits By Type [Line Items] | |||||
Balance | $ 142,174 | $ 142,174 | 142,174 | 142,174 | 121,062 |
Interest Expense | |||||
Noninterest-bearing demand [Member] | |||||
Deposits By Type [Line Items] | |||||
Interest Expense |
BORROWINGS (Details)
BORROWINGS (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Balance | $ 208,500 | $ 153,500 |
Rate | 0.75% | 0.65% |
Maturity 2016 [Member] | ||
Balance | $ 105,000 | $ 130,000 |
Rate | 0.59% | 0.49% |
Maturity 2017 [Member] | ||
Balance | $ 78,000 | $ 8,000 |
Rate | 0.74% | 1.23% |
Maturity 2018 [Member] | ||
Balance | $ 12,000 | $ 2,000 |
Rate | 0.91% | 1.25% |
Maturity 2019 [Member] | ||
Balance | $ 12,500 | $ 12,500 |
Rate | 1.82% | 1.82% |
Maturity 2020 [Member] | ||
Balance | $ 1,000 | $ 1,000 |
Rate | 1.78% | 1.78% |
DERIVATIVE FINANCIAL INSTRUME64
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Designated as Hedging Instrument [Member] | ||
Asset derivatives, Fair value | $ 67 | |
Liability derivatives, Fair value | 17 | |
Designated as Hedging Instrument [Member] | Interest rate swaps [Member] | ||
Asset derivatives, Fair value | 67 | |
Liability derivatives, Fair value | 17 | |
Not Designated as Hedging Instrument [Member] | ||
Asset derivatives, Fair value | 81 | 45 |
Not Designated as Hedging Instrument [Member] | Mortgage banking - loan commitment [Member] | ||
Asset derivatives, Fair value | 58 | 30 |
Not Designated as Hedging Instrument [Member] | Mortgage loan forward sales commitments [Member] | ||
Asset derivatives, Fair value | $ 23 | $ 15 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Federal net operating loss | $ 9,535 | $ 10,750 |
Allowance for loan losses | 3,165 | 3,557 |
Deferred compensation and post employment benefits | 3,396 | 3,498 |
North Carolina net operating loss | 624 | 988 |
Valuation reserve for other real estate | 516 | 516 |
Non-accrual interest | 372 | 286 |
Tax credits and other carryforwards | 376 | 197 |
Deferred gains | 287 | 154 |
Unrealized losses on securities | 697 | |
Loan basis difference | 235 | |
Deposit premium | 186 | |
Other | 769 | 421 |
Gross deferred tax assets | 19,461 | 21,064 |
Fixed assets | 416 | 499 |
Loan servicing rights | 897 | 881 |
Deferred loan costs | 996 | 708 |
Prepaid expenses | 30 | 146 |
Unrealized gains on securities | 1,149 | |
Other | 598 | |
Total deferred tax liabilities | 4,086 | 2,234 |
Net deferred tax asset | $ 15,375 | $ 18,830 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share Details | ||||
Net income | $ 1,800 | $ 2,165 | $ 4,024 | $ 21,885 |
Weighted average shares outstanding | 6,466,375 | 6,546,375 | 6,483,535 | 6,546,375 |
Effect of dilutive securities | 17,851 | 16,663 | ||
Average shares outstanding | 6,484,226 | 6,546,375 | 6,500,198 | 6,546,375 |
Earnings per share - basic | $ 0.28 | $ 0.33 | $ 0.62 | $ 3.34 |
Earnings per share - diluted | $ 0.28 | $ 0.33 | $ 0.62 | $ 3.34 |
Anti-dilutive shares not included in calculating earnings per share (in shares) | 411,500 | 411,500 |
ACCUMULATED OTHER COMPREHENSI67
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Balance, beginning of period | $ 2,507 | $ (2,166) | $ (1,736) | $ (2,269) |
Change in deferred tax valuation allowance attributable to unrealized (gain) loss on investment securities available for sale | 33 | 95 | 328 | 149 |
Change in unrealized holding gain (loss) on securities available for sale | (1,390) | 2,172 | 5,115 | 2,020 |
Reclassification adjustment for net securities gains realized in net income | (407) | (35) | (1,105) | (322) |
Transfer of net unrealized loss from available for sale to held to maturity | 324 | 894 | ||
Amortization of unrealized gains and losses on securities transferred to held to maturity | 95 | 50 | ||
Income tax benefit (expense) | 548 | (867) | (1,836) | (921) |
Balance, end of period | 1,710 | (638) | 1,710 | (638) |
Available-for-sale Securities [Member] | ||||
Balance, beginning of period | 3,030 | (512) | (594) | (236) |
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 | (1,390) | 2,172 | 5,115 | 2,020 |
Reclassification adjustment for net securities gains realized in net income | (407) | (35) | (1,105) | (322) |
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) | 696 | (807) | (1,487) | (644) |
Balance, end of period | 1,929 | 818 | 1,929 | 818 |
Held-to-maturity Securities [Member] | ||||
Balance, beginning of period | (211) | (840) | (563) | (1,165) |
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 | 324 | 894 | ||
Amortization of unrealized gains and losses on securities transferred to held to maturity | 163 | 705 | ||
Income tax benefit (expense) | (113) | (60) | (331) | (277) |
Balance, end of period | (737) | (737) | ||
Valuation Allowance of Deferred Tax Assets [Member] | ||||
Balance, beginning of period | (284) | (814) | (579) | |
Change in deferred tax valuation allowance attributable to unrealized (gain) loss on investment securities available for sale | 33 | 95 | 328 | |
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 | (251) | (251) | ||
Cash flow Cash hedge [Member] | ||||
Balance, beginning of period | (28) | (868) | ||
Change in deferred tax valuation allowance attributable to unrealized (gain) loss on investment securities available for sale | 149 | |||
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 | 95 | 50 | ||
Income tax benefit (expense) | (35) | (18) | ||
Balance, end of period | $ 32 | $ (719) | $ 32 | $ (719) |
ACCUMULATED OTHER COMPREHENSI68
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details 2) - Reclassification out of Accumulated Other Comprehensive Income [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Impact, net of tax | $ 282 | $ 15 | $ 447 | $ (90) |
Valuation Allowance of Deferred Tax Assets [Member] | ||||
Tax effect | 33 | 95 | 328 | 149 |
Impact, net of tax | 33 | 95 | 328 | 149 |
Available-for-sale Securities [Member] | ||||
Before tax | 407 | 35 | 1,105 | 322 |
Tax effect | (150) | (13) | (408) | (121) |
Impact, net of tax | 257 | 22 | 697 | 201 |
Held-to-maturity Securities [Member] | ||||
Before tax | (13) | (163) | (917) | (705) |
Tax effect | 5 | 61 | 339 | 265 |
Impact, net of tax | $ (8) | $ (102) | $ (578) | $ (440) |
COMMITMENTS AND CONTINGENCIES69
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | Sep. 30, 2016USD ($) |
Other Commitments [Line Items] | |
Commitments to fund lines of credit | $ 105,413 |
Lines of credit [Member] | |
Other Commitments [Line Items] | |
Commitments to fund lines of credit | 104,586 |
Standby Letters of Credit [Member] | |
Other Commitments [Line Items] | |
Commitments to fund lines of credit | $ 827 |
COMMITMENTS AND CONTINGENCIES70
COMMITMENTS AND CONTINGENCIES (Details 2) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Fixed | $ 30,031 |
Variable | 12,769 |
Total | $ 42,800 |
Minimum [Member] | |
Fixed | 1.99% |
Variable | 3.25% |
Maximum [Member] | |
Fixed | 6.50% |
Variable | 6.25% |
COMMITMENTS AND CONTINGENCIES71
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
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 | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | $ 330,350 | $ 245,966 |
Fair Value of Derivative Assets | 67 | |
Fair Value of Derivative Liabilities | 17 | |
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 | 327,843 | 243,576 |
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 | 8,302 | 6,824 |
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 | 316,783 | 236,752 |
Fair Value of Derivative Assets | 67 | |
Fair Value of Derivative Liabilities | 17 | |
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 | 5,265 | 2,390 |
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 | 5,133 | 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 | 5,133 | 4,714 |
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 | 2,550 | 1,510 |
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 | 619 | 600 |
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 | 12,173 | 25,720 |
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 | 126,822 | 39,858 |
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 | 164,660 | 171,174 |
Available-for-sale Securities [Member] | Corporate debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 15,886 | |
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 | 8,302 | 6,824 |
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 | 2,550 | 1,510 |
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 | 619 | 600 |
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 | 316,783 | 236,752 |
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 | 12,173 | 25,720 |
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 | 126,822 | 39,858 |
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 | 164,660 | 171,174 |
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 13,128 | |
Available-for-sale Securities [Member] | 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 | 2,758 | |
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Corporate debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 2,758 | |
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 | 2,426 | 2,344 |
Loan Servicing Rights[Member] | 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 | 2,426 | 2,344 |
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 | 23 | 16 |
Forward Sales Commitments [Member] | 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 | 23 | 16 |
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 | 58 | 30 |
Interest Rate Lock Commitments [Member] | 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 | $ 58 | $ 30 |
FAIR VALUE DISCLOSURES (Detai73
FAIR VALUE DISCLOSURES (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Fair Value Disclosures Details 2 | ||||
Balance at beginning of period | $ 2,510 | $ 2,176 | $ 2,390 | $ 2,248 |
Corporate debt securities available for sale market valuation, net included in accumulated other comprehensive gain | 2,758 | 2,758 | ||
Capitalization from loans sold | 185 | 215 | 444 | 431 |
Fair value adjustment | (150) | (55) | (362) | (300) |
Mortgage derivative gains included in Other income | (38) | 72 | 35 | 29 |
Balance at end of period | $ 5,265 | $ 2,408 | $ 5,265 | $ 2,408 |
FAIR VALUE DISCLOSURES (Detai74
FAIR VALUE DISCLOSURES (Details 3) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Assets measured at fair value on nonrecurring basis | $ 15,346 | $ 17,629 |
Impaired loans measured at present value | 4,600 | 5,100 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets measured at fair value on nonrecurring basis | 15,346 | 17,629 |
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | One To Four Family Residential [Member] | ||
Assets measured at fair value on nonrecurring basis | 2,337 | 4,163 |
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Assets measured at fair value on nonrecurring basis | 7,348 | 7,226 |
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Home Equity Line of Credit [Member] | ||
Assets measured at fair value on nonrecurring basis | 213 | 213 |
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Other Portfolio Segment [Member] | ||
Assets measured at fair value on nonrecurring basis | 914 | 658 |
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 | 2,337 | 4,163 |
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 | 7,348 | 7,226 |
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 | 213 |
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 | 914 | 658 |
Fair Value, Measurements, Nonrecurring [Member] | Real Estate Owned [Member] | One To Four Family Residential [Member] | ||
Assets measured at fair value on nonrecurring basis | 1,413 | 1,384 |
Fair Value, Measurements, Nonrecurring [Member] | Real Estate Owned [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Assets measured at fair value on nonrecurring basis | 951 | 1,123 |
Fair Value, Measurements, Nonrecurring [Member] | Real Estate Owned [Member] | Other Portfolio Segment [Member] | ||
Assets measured at fair value on nonrecurring basis | 2,260 | 2,862 |
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 | 1,413 | 1,384 |
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 | 951 | 1,123 |
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 | $ 2,260 | $ 2,862 |
FAIR VALUE DISCLOSURES (Detai75
FAIR VALUE DISCLOSURES (Details 4) | 9 Months Ended |
Sep. 30, 2016 | |
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 | 5.00% |
Discount rate | 12.00% |
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 | 14.00% |
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 (Detai76
FAIR VALUE DISCLOSURES (Details 5) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Assets: | ||||
Cash and equivalents | $ 62,029 | $ 40,650 | $ 42,410 | $ 58,982 |
Trading securities | 5,133 | 4,714 | ||
Securities available for sale | 322,710 | 238,862 | ||
Securities held to maturity | 41,164 | |||
Other investments, at cost | 11,436 | 8,834 | ||
Interest receivable | 4,309 | 3,554 | ||
Bank owned life insurance | 31,169 | 20,858 | ||
Loan servicing rights | 2,426 | 2,344 | ||
Commitments | ||||
Derivative asset | 67 | |||
Liabilities: | ||||
Federal Home Loan Bank advances | 208,500 | 153,500 | ||
Junior subordinated debentures | 14,433 | 14,433 | ||
Other borrowings | 2,620 | 2,198 | ||
Accrued interest payable | 244 | 213 | ||
Reported Value Measurement [Member] | ||||
Assets: | ||||
Cash and equivalents | 62,029 | 40,650 | ||
Trading securities | 5,133 | 4,714 | ||
Securities available for sale | 322,710 | 238,862 | ||
Securities held to maturity | 41,164 | |||
Loans held for sale | 8,428 | 8,348 | ||
Loans receivable, net | 727,403 | 624,072 | ||
Other investments, at cost | 11,436 | 8,834 | ||
Interest receivable | 4,309 | 3,554 | ||
Bank owned life insurance | 31,169 | 20,858 | ||
Loan servicing rights | 2,426 | 2,344 | ||
Derivative asset | 67 | |||
Liabilities: | ||||
Demand deposits | 537,514 | 440,475 | ||
Time deposits | 299,764 | 276,142 | ||
Federal Home Loan Bank advances | 208,500 | 153,500 | ||
Junior subordinated debentures | 14,433 | 14,433 | ||
Other borrowings | 2,620 | |||
Accrued interest payable | 244 | 213 | ||
Interest rate swap | 17 | |||
Reported Value Measurement [Member] | Forward Sales Commitments [Member] | ||||
Assets: | ||||
Commitments | 23 | 16 | ||
Reported Value Measurement [Member] | Interest Rate Lock Commitments [Member] | ||||
Assets: | ||||
Commitments | 58 | 30 | ||
Portion at Fair Value Measurement [Member] | ||||
Assets: | ||||
Cash and equivalents | 62,029 | 40,650 | ||
Trading securities | 5,133 | 4,714 | ||
Securities available for sale | 322,710 | 238,862 | ||
Securities held to maturity | 41,812 | |||
Loans held for sale | 9,230 | 8,952 | ||
Loans receivable, net | 717,524 | 620,516 | ||
Other investments, at cost | 11,436 | 8,834 | ||
Interest receivable | 4,309 | 3,554 | ||
Bank owned life insurance | 31,169 | 20,858 | ||
Loan servicing rights | 2,426 | 2,344 | ||
Derivative asset | 67 | |||
Liabilities: | ||||
Demand deposits | 538,019 | 440,475 | ||
Time deposits | 297,960 | 275,403 | ||
Federal Home Loan Bank advances | 208,683 | 153,441 | ||
Junior subordinated debentures | 14,433 | 14,433 | ||
Other borrowings | 2,812 | |||
Accrued interest payable | 244 | 213 | ||
Interest rate swap | 17 | |||
Portion at Fair Value Measurement [Member] | Forward Sales Commitments [Member] | ||||
Assets: | ||||
Commitments | 23 | 16 | ||
Portion at Fair Value Measurement [Member] | Interest Rate Lock Commitments [Member] | ||||
Assets: | ||||
Commitments | 58 | 30 | ||
Fair Value, Inputs, Level 1 [Member] | Portion at Fair Value Measurement [Member] | ||||
Assets: | ||||
Cash and equivalents | 62,029 | 40,650 | ||
Trading securities | 5,133 | 4,714 | ||
Securities available for sale | 3,169 | 2,110 | ||
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 | ||||
Derivative asset | ||||
Liabilities: | ||||
Demand deposits | ||||
Time deposits | ||||
Federal Home Loan Bank advances | ||||
Junior subordinated debentures | ||||
Other borrowings | ||||
Accrued interest payable | ||||
Interest rate swap | ||||
Fair Value, Inputs, Level 2 [Member] | ||||
Assets: | ||||
Derivative asset | 67 | |||
Fair Value, Inputs, Level 2 [Member] | Portion at Fair Value Measurement [Member] | ||||
Assets: | ||||
Cash and equivalents | ||||
Trading securities | ||||
Securities available for sale | 316,783 | 236,752 | ||
Securities held to maturity | 40,817 | |||
Loans held for sale | 9,230 | 8,952 | ||
Loans receivable, net | ||||
Other investments, at cost | 11,436 | 8,834 | ||
Interest receivable | 4,309 | 3,554 | ||
Bank owned life insurance | 31,169 | 20,858 | ||
Loan servicing rights | ||||
Derivative asset | 67 | |||
Liabilities: | ||||
Demand deposits | 538,019 | 440,475 | ||
Time deposits | ||||
Federal Home Loan Bank advances | 208,683 | 153,441 | ||
Junior subordinated debentures | 14,433 | 14,433 | ||
Other borrowings | ||||
Accrued interest payable | 244 | 213 | ||
Interest rate swap | 17 | |||
Fair Value, Inputs, Level 3 [Member] | Portion at Fair Value Measurement [Member] | ||||
Assets: | ||||
Cash and equivalents | ||||
Trading securities | ||||
Securities available for sale | 2,758 | |||
Securities held to maturity | ||||
Loans held for sale | ||||
Loans receivable, net | 717,524 | 620,516 | ||
Other investments, at cost | ||||
Interest receivable | ||||
Bank owned life insurance | ||||
Loan servicing rights | 2,426 | 2,344 | ||
Derivative asset | ||||
Liabilities: | ||||
Demand deposits | ||||
Time deposits | 297,960 | 275,403 | ||
Federal Home Loan Bank advances | ||||
Junior subordinated debentures | ||||
Other borrowings | 2,812 | |||
Accrued interest payable | ||||
Interest rate swap | ||||
Fair Value, Inputs, Level 3 [Member] | Portion at Fair Value Measurement [Member] | Forward Sales Commitments [Member] | ||||
Assets: | ||||
Commitments | 23 | 16 | ||
Fair Value, Inputs, Level 3 [Member] | Portion at Fair Value Measurement [Member] | Interest Rate Lock Commitments [Member] | ||||
Assets: | ||||
Commitments | $ 58 | $ 30 |
SHARE REPURCHASES (Details)
SHARE REPURCHASES (Details) - $ / shares | 1 Months Ended | 9 Months Ended | |||||
Apr. 30, 2016 | Mar. 31, 2016 | Feb. 29, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | May 31, 2016 | Jan. 28, 2016 | |
Share Repurchases Details | |||||||
Number of Shares Authorized to be Repurchased | 327,318 | ||||||
Number of Shares Purchased | 5,997 | 33,382 | 40,621 | 80,000 | |||
Average Price Paid per Share | $ 17.65 | $ 17.70 | $ 17.04 | $ 17.42 | |||
Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | 247,318 | 286,697 | 247,318 | 253,315 | 247,318 |