Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 09, 2017 | |
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 | Mar. 31, 2017 | |
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 | 6,455,145 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,017 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and due from banks | $ 14,565 | $ 10,709 |
Interest-earning deposits | 69,652 | 32,585 |
Cash and cash equivalents | 84,217 | 43,294 |
Investments - trading | 5,499 | 5,211 |
Investments - available for sale | 431,737 | 398,291 |
Other investments, at cost | 12,208 | 15,261 |
Loans held for sale | 2,309 | 4,584 |
Loans receivable, net | 759,150 | 744,361 |
Allowance for loan losses | (9,498) | (9,305) |
Fixed assets, net | 21,245 | 20,209 |
Real estate owned | 4,090 | 4,226 |
Interest receivable | 5,287 | 5,012 |
Bank owned life insurance | 31,528 | 31,347 |
Net deferred tax asset | 18,259 | 18,985 |
Loan servicing rights | 2,638 | 2,603 |
Goodwill | 7,144 | 2,065 |
Core deposit intangible | 2,569 | 979 |
Other assets | 5,923 | 5,754 |
Total assets | 1,384,305 | 1,292,877 |
Liabilities: | ||
Deposits | 987,991 | 830,013 |
Federal Home Loan Bank advances | 223,500 | 298,500 |
Junior subordinated notes | 14,433 | 14,433 |
Other borrowings | 2,905 | 2,725 |
Post employment benefits | 10,209 | 10,211 |
Accrued interest payable | 566 | 254 |
Other liabilities | 9,697 | 3,673 |
Total liabilities | 1,249,301 | 1,159,809 |
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; 6,455,145 and 6,467,550 shares issued and outstanding as of March 31, 2017 and December 31, 2016, respectively | ||
Common stock held by Rabbi Trust, at cost; 14,000 shares at March 31, 2017 and December 31, 2016 | (279) | (279) |
Additional paid in capital | 62,584 | 62,664 |
Retained earnings | 77,439 | 76,139 |
Accumulated other comprehensive loss | (4,740) | (5,456) |
Total equity | 135,004 | 133,068 |
Total liabilities and equity | $ 1,384,305 | $ 1,292,877 |
CONSOLIDATED BALANCE SHEETS (U3
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
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 | 6,455,145 | 6,467,550 |
Common stock, shares outstanding | 6,455,145 | 6,467,550 |
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 | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Interest income: | ||
Interest and fees on loans | $ 8,476 | $ 7,206 |
Interest on tax exempt loans | 89 | 45 |
Taxable securities | 1,759 | 1,458 |
Tax-exempt securities | 731 | 143 |
Interest-earning deposits | 116 | 36 |
Other | 172 | 105 |
Total interest and dividend income | 11,343 | 8,993 |
Interest expense: | ||
Deposits | 1,028 | 942 |
Federal Home Loan Bank advances | 530 | 275 |
Junior subordinated notes | 137 | 126 |
Other borrowings | 30 | 26 |
Total interest expense | 1,725 | 1,369 |
Net interest income | 9,618 | 7,624 |
Provision for loan losses | 315 | |
Net interest income after provision for loan losses | 9,303 | 7,624 |
Noninterest income: | ||
Servicing income, net | 95 | 116 |
Mortgage banking | 220 | 140 |
Gain on sale of SBA loans | 142 | 334 |
Gain on sale of investments, net | 7 | 269 |
Trading securities gains | 207 | 74 |
Other than temporary impairment on cost method investment | (700) | |
Service charges on deposit accounts | 391 | 394 |
Interchange fees | 410 | 342 |
Bank owned life insurance | 181 | 107 |
Other | 130 | 99 |
Total noninterest income | 1,083 | 1,875 |
Noninterest expenses: | ||
Compensation and employee benefits | 4,836 | 4,010 |
Net occupancy | 951 | 817 |
Federal deposit insurance | 104 | 176 |
Professional and advisory | 274 | 212 |
Data processing | 401 | 351 |
Marketing and advertising | 248 | 200 |
Merger-related expenses | 448 | 145 |
Net cost of operation of real estate owned | 134 | 286 |
Other | 1,211 | 1,082 |
Total noninterest expenses | 8,607 | 7,279 |
Income before taxes | 1,779 | 2,220 |
Income tax expense (benefit) | 479 | 854 |
Net income (loss) | $ 1,300 | $ 1,366 |
Earnings per common share: | ||
Earnings per share - basic | $ 0.20 | $ 0.21 |
Earnings per share - diluted | $ 0.20 | $ 0.21 |
Weighted average common shares outstanding: | ||
Common shares outstanding - Basic | 6,464,861 | 6,517,753 |
Common shares outstanding - Diluted | 6,521,298 | 6,517,955 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 1,300 | $ 1,366 |
Other comprehensive income (loss): | ||
Change in unrealized holding gains and losses on securities available for sale | 921 | 3,455 |
Reclassification adjustment for securities gains realized in net income | (7) | (269) |
Reclassification adjustment for other than temporary impairment realized in net income | 79 | |
Amortization of unrealized loss on securities transferred to held to maturity | 431 | |
Change in deferred tax valuation allowance attributable to unrealized gains and losses on investment securities available for sale | 54 | 201 |
Change in unrealized holding gains and losses on cash flow hedge | 39 | |
Reclassification adjustment for cash flow effectiveness | 18 | |
Other comprehensive income (loss), before tax | 1,104 | 3,818 |
Income tax effect related to items of other comprehensive income (loss) | (388) | (1,361) |
Other comprehensive income (loss), after tax | 716 | 2,457 |
Comprehensive income (loss) | $ 2,016 | $ 3,823 |
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, 2015 | $ 63,722 | $ 69,763 | $ (1,736) | $ (279) | $ 131,469 | |
Beginning Balance (in shares) at Dec. 31, 2015 | 6,546,375 | |||||
Net income (loss) | 1,366 | 1,366 | ||||
Other comprehensive income, net of tax | 2,457 | 2,457 | ||||
Stock compensation expense | 208 | 208 | ||||
Repurchase of common stock | (1,263) | (1,263) | ||||
Repurchase of common stock (in shares) | (74,003) | |||||
Ending Balance at Mar. 31, 2016 | 62,667 | 71,129 | 721 | (279) | 134,238 | |
Ending Balance (in shares) at Mar. 31, 2016 | 6,472,372 | |||||
Beginning Balance at Dec. 31, 2016 | 62,664 | 76,139 | (5,456) | (279) | 133,068 | |
Beginning Balance (in shares) at Dec. 31, 2016 | 6,467,550 | |||||
Net income (loss) | 1,300 | 1,300 | ||||
Other comprehensive income, net of tax | 716 | 716 | ||||
Stock compensation expense | 229 | 229 | ||||
Vesting of restricted stock units, net shares surrendered | (8) | (8) | ||||
Vesting of restricted stock units (in shares) | 595 | |||||
Repurchase of common stock | (301) | (71,281) | ||||
Repurchase of common stock (in shares) | (13,000) | |||||
Ending Balance at Mar. 31, 2017 | $ 62,584 | $ 77,439 | $ (4,740) | $ (279) | $ 135,004 | |
Ending Balance (in shares) at Mar. 31, 2017 | 6,455,145 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 1,300 | $ 1,366 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and leasehold amortization | 231 | 314 |
Security amortization, net | 1,117 | 483 |
Trading account income | (207) | (74) |
Provision for loan losses | 315 | |
Provision for real estate owned | 78 | 342 |
Share-based compensation expense | 229 | 208 |
Change in net deferred tax asset | 393 | 831 |
Net increase (decrease) in deferred loan fees | (165) | (150) |
Gain on sales of securities available for sale | (7) | (269) |
Other than temporary impairment on cost method investment | 700 | |
Income on bank owned life insurance, net | (181) | (107) |
Mortgage banking income, net | (220) | (140) |
Gain on sale of SBA loans | (142) | (334) |
Net realized loss on sale of real estate owned | (144) | |
Loans originated for sale | (10,848) | (2,932) |
Proceeds from sale of loans originated for sale | 12,342 | 6,520 |
Net change in operating assets and liabilities: | ||
Interest receivable | (275) | (262) |
Loan servicing rights | (35) | (54) |
Other assets | (110) | 287 |
Postemployment benefits | (2) | 29 |
Accrued interest payable | (5) | 37 |
Other liabilities | 3 | (22) |
Net cash provided by operating activities | 4,511 | 5,929 |
Activity for investment securities: | ||
Purchases | (53,493) | (53,998) |
Maturities/calls and principal repayments | 8,523 | 15,000 |
Sales | 17,324 | 34,717 |
Net (increase) decrease in loans | (14,426) | (9,144) |
Net cash received in branch acquisition | 146,750 | |
Proceeds from sale of real estate owned | 215 | 249 |
Purchase of fixed assets | (253) | (144) |
Purchase of other investments, at cost | (540) | |
Redemptions of other investments, at cost | 3,053 | |
Net cash used in investing activities | 107,693 | (13,860) |
Cash flows from financing activities: | ||
Net increase (decrease) in deposits | 3,359 | 3,667 |
Net increase (decrease) in escrow deposits | 561 | 428 |
Proceeds from FHLB advances | 340,000 | 125,000 |
Repayment of FHLB advances | (415,000) | (115,000) |
Proceeds from other borrowings | 108 | 349 |
Proceeds from sale of common stock | (309) | (1,263) |
Net cash provided by financing activities | (71,281) | 13,181 |
Increase (decrease) in cash and cash equivalents | 40,923 | 5,250 |
Cash and cash equivalents, beginning of period | 43,294 | 40,650 |
Cash and cash equivalents, end of period | 84,217 | 45,900 |
Cash paid during the year for: | ||
Interest on deposits and other borrowings | 1,730 | 1,332 |
Acquisitions | ||
Assets acquired | 3,997 | 40,407 |
Liabilities assumed | 154,505 | 39,920 |
Net assets | 150,508 | 487 |
Noncash investing and financing activities: | ||
Real estate acquired in satisfaction of loans | 220 | 508 |
Purchased investments to be settled | $ 6,617 | $ 6,373 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2017 | |
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 commercial bank and has a wholly owned subsidiary, Entegra Services, Inc., which was inactive as of March 31, 2017. 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, 2017. 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 Note 16. Recent Accounting Standards Updates In March 2017, the Financial Accounting Standards Board (FASB) issued amendments to Accounting Standards Update (“ASU”) 2017-08 Receivables –Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization of Purchased Callable Debt Securities. In March 2017, the FASB issued amendments to ASU 2017-07 Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension cost and Net Periodic Postretirement Benefit Cost. In January 2017, the FASB issued amendments to ASU 2017-04 Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. In January 2017, the FASB issued amendments to ASU 2017-01 Business Combinations (Topic 80): Clarifying the Definition of a Business. 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. |
ACQUISITIONS
ACQUISITIONS | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
ACQUISITIONS | NOTE 2. ACQUISITIONS The Company has determined that the acquisition described below constitutes a business combination as defined in Accounting Standards Codification Business Combinations Fair Value Measurements On February 24, 2017, the Bank completed its acquisition of two branches from Stearns Bank, N.A. (“Stearns”). In accordance with the Purchase and Assumption Agreement, dated October 19, 2016, by and between the Bank and Stearns (the “P&A Agreement”), the Bank acquired approximately $154.2 million of deposits, the bank facilities, and certain other assets. In consideration of the purchased assets and assumed liabilities, the Bank paid (1) the book value, or approximately $1.0 million, for the branch facilities and certain assets, and (2) a deposit premium of $5.7 million, equal to 3.65% of the average daily deposits for the 30- day period ending the tenth (10 th The following table summarizes the assets acquired and liabilities assumed at the date of acquisition and their initial fair values: (Dollars in thousands) As Recorded Fair Value As Recorded Assets Cash and cash equivalents $ 1,258 $ — $ 1,258 Loans 7 — 7 Premises and equipment 950 132 1,082 Core deposit intangible — 1,650 1,650 Other assets — — — Total assets acquired 2,215 1,782 3,997 Liabilities Deposits: Noninterest-bearing demand $ 16,032 $ — 16,032 Interest-bearing demand 40,525 — 40,525 Money market 15,368 — 15,368 Savings 7,717 — 7,717 Time deposits 73,480 1,062 74,542 Total deposits 153,122 1,062 154,184 Other liabilities 321 — 321 Total liabilities assumed 153,443 1,062 154,505 Excess of liabilities assumed over assets acquired $ 151,228 $ 720 $ 150,508 Cash received to settle the acquisition $ 145,492 Goodwill $ 5,016 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 real estate owned (REO) may change to the extent that the Company receives updated appraisals indicating changes in valuation assumptions at acquisition. Pro forma disclosures are not significant and not meaningful. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 3 Months Ended |
Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | NOTE 3. INVESTMENT SECURITIES The following table presents the holdings of our trading account as of March 31, 2017 and December 31, 2016: March 31, December 31, 2017 2016 (Dollars in thousands) Trading account $ 5,499 $ 5,211 The trading account is held in a Rabbi Trust and seeks to generate returns that will offset the change in liabilities related to market risk of certain deferred compensation agreements. There were $0.2 million and $0.1 million of realized gains for the three months ended March 31, 2017 and 2016, respectively. The Company’s held-to-maturity (HTM) investment portfolio was transferred to available-for-sale (AFS) 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 HTM for two years from the date of the transfer. On April 28, 2017, the Louisiana Office of Financial Institutions closed First NBC Bank and appointed the FDIC as receiver. The Bank owns $0.7 million par value of subordinated debt issued by the holding company of First NBC Bank with an unrealized loss of $79,000 prior to the impairment. The Company concluded the investment to be fully impaired. As such, the financial information as of and for the three months ended March 31, 2017 includes other than temporary impairment of $0.7 million before tax. The amortized cost and estimated fair values of AFS securities as of March 31, 2017 and December 31, 2016 are summarized as follows: March 31, 2017 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. government agencies $ 3,323 $ 14 $ — $ 3,337 Municipal securities 155,294 333 (5,242 ) 150,385 Mortgage-backed securities U.S. government agencies 160,586 100 (1,887 ) 158,799 SBA securities 36,671 14 (280 ) 36,405 Agency collateralized mortgage obligations 15,055 30 (155 ) 14,930 Non-agency collateralized mortgage obligations 44,363 — (836 ) 43,527 U.S. Treasury securities 2,501 14 (3 ) 2,512 Corporate bonds 21,143 254 (162 ) 21,235 Mutual funds 619 — (12 ) 607 $ 439,555 $ 759 $ (8,577 ) $ 431,737 December 31, 2016 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. government agencies $ 12,076 $ 31 $ — $ 12,107 Municipal securities 152,208 337 (5,774 ) 146,771 Mortgage-backed securities U.S. government agencies 128,820 107 (2,161 ) 126,766 SBA securities 30,002 13 (303 ) 29,712 Agency collateralized mortgage obligations 17,049 14 (173 ) 16,890 Non-agency collateralized mortgage obligations 45,475 2 (908 ) 44,569 U.S. Treasury securities 2,501 15 (2 ) 2,514 Corporate bonds 18,354 171 (167 ) 18,358 Mutual funds 616 — (12 ) 604 $ 407,101 $ 690 $ (9,500 ) $ 398,291 Information pertaining to securities with gross unrealized losses at March 31, 2017 and December 31, 2016, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: March 31, 2017 Less Than 12 Months More Than 12 Months Total Fair Unrealized Losses Fair Unrealized Losses Fair Unrealized Losses (Dollars in thousands) Available-for-Sale: Municipal securities $ 119,549 $ 5,228 $ 330 $ 14 $ 119,879 $ 5,242 Mortgage-backed securities U.S. government agencies 117,333 1,769 6,263 118 123,596 1,887 SBA 7,067 38 20,035 242 27,102 280 Agency collateralized mortgage obligations 4,575 107 1,002 48 5,577 155 Non-agency collateralized mortgage obligations 40,140 803 4,275 33 44,415 836 U.S. Treasury securities 998 3 — — 998 3 Corporate debt securities 5,705 162 — — 5,705 162 Mutual funds 607 12 — — 607 12 $ 295,974 $ 8,122 $ 31,905 $ 455 $ 327,879 $ 8,577 December 31, 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 $ 122,468 $ 5,759 $ 331 $ 15 $ 122,799 $ 5,774 Mortgage-backed securities U.S. government agencies 101,382 2,068 5,102 93 106,484 2,161 SBA 15,199 145 11,434 158 26,633 303 Agency collateralized mortgage obligations 13,135 127 1,058 46 14,193 173 Non-agency collateralized mortgage obligations 40,378 908 — — 40,378 908 U.S. Treasury securities 1,000 2 — — 1,000 2 Corporate debt securities 6,741 167 — — 6,741 167 Mutual funds 616 12 — — 616 12 $ 300,919 $ 9,188 $ 17,925 $ 312 $ 318,844 $ 9,500 Information pertaining to the number of securities with unrealized losses is detailed in the table below. The Company believes all unrealized losses as of March 31, 2017 and December 31, 2016 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. March 31, 2017 Less Than More Than Total Municipal securities 113 1 114 Mortgage-backed securities U.S. government agencies 80 4 84 SBA 6 13 19 Agency collateralized mortgage obligations 3 1 4 Non-agency collateralized mortgage obligations 19 3 22 U.S. Treasury securities 1 — 1 Corporate debt securities 5 — 5 Mutual funds 1 — 1 228 22 250 December 31, 2016 Less Than More Than Total Municipal securities 129 1 130 Mortgage-backed securities U.S. government agencies 66 5 71 SBA 11 8 19 Agency collateralized mortgage obligations 7 1 8 Non-agency collateralized mortgage obligations 18 — 18 U.S. Treasury securities 1 — 1 Corporate debt securities 8 — 8 240 15 255 At March 31, 2017, the Company held 250 investment securities that were in an unrealized loss position of which 22 had been in unrealized loss positions for over twelve months. Market changes in interest rates and credit spreads may result in temporary unrealized losses as market prices of securities fluctuate. The Company reviews its investment portfolio on a quarterly basis for indications of other than temporary impairment. The severity and duration of impairment and the likelihood of potential recovery of impairment is considered along with the intent and ability to hold any impaired security to maturity or recovery of carrying value. When reviewing the securities in loss positions, pricing is reviewed for deterioration, bond ratings are reviewed for downgrades, and credit enhancement levels are reviewed for erosion. The Company determined all unrealized losses to be temporary as of March 31, 2017. At March 31, 2017, there was no intent to sell any of the securities in an unrealized loss position, and it is more likely than not the Company will not be required to sell these securities. For the three months ended March 31, 2017 and 2016 the Company received proceeds from sales of securities classified as AFS and corresponding gross realized gains and losses as follows: Three Months Ended March 31, 2017 2016 (Dollars in thousands) Gross proceeds $ 17,324 $ 34,717 Gross realized gains 7 287 Gross realized losses — 18 The Company had securities pledged against deposits and borrowings of approximately $184.3 million and $237.1 million at March 31, 2017 and December 31, 2016, respectively. The amortized cost and estimated fair value of investments in debt securities at March 31, 2017, 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 Fair (Dollars in thousands) Less than 1 year $ 1,329 $ 1,317 Over 1 year through 5 years 16,683 16,696 After 5 years through 10 years 27,109 27,110 Over 10 years 137,759 132,953 182,880 178,076 Mortgage-backed securities 256,675 253,661 Total $ 439,555 $ 431,737 |
LOANS RECEIVABLE
LOANS RECEIVABLE | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
LOANS RECEIVABLE | NOTE 4. LOANS RECEIVABLE Loans receivable as of March 31, 2017 and December 31, 2016 are summarized as follows: March 31, December 31, 2017 2016 (Dollars in thousands) Real estate mortgage loans: One-to four family residential $ 282,620 $ 278,437 Commercial real estate 296,224 292,879 Home equity loans and lines of credit 48,340 50,334 Residential construction 18,858 18,531 Other construction and land 68,383 60,605 Total real estate loans 714,425 700,786 Commercial and industrial 42,619 41,306 Consumer 4,997 4,594 Total commercial and consumer 47,616 45,900 Loans receivable, gross 762,041 746,686 Less: Net deferred loan fees (1,578 ) (923 ) Fair value discount (786 ) (857 ) Unamortized premium 556 605 Unamortized discount (1,083 ) (1,150 ) . Loans receivable, net of deferred fees $ 759,150 $ 744,361 The Bank had $149.2 million and $144.3 million of loans pledged as collateral to secure funding with the Federal Home Loan Bank of Atlanta (“FHLB”) at March 31, 2017 and December 31, 2016, respectively. The Bank also had $90.6 million and $89.1 million of loans pledged as collateral to secure funding with the Federal Reserve Bank (“FRB”) Discount Window at March 31, 2017 and December 31, 2016, respectively. Included in loans receivable and other borrowings at March 31, 2017 are $2.9 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 individually purchased loans for the three month periods ended March 31, 2017 and 2016: For the Three Months Ended March 31, (Dollars in thousands) 2017 2016 Discount on purchased loans, beginning of period $ 1,150 $ 1,438 Accretion (67 ) (77 ) Discount on purchased loans, end of period $ 1,083 $ 1,361 The following table presents the activity related to the fair value discount on loans from business combinations for the three month periods ended March 31, 2017 and 2016: For the Three Months Ended March 31, (Dollars in thousands) 2017 2016 Fair value discount, beginning of period $ 857 $ 72 Accretion (71 ) (5 ) Fair value discount, end of period $ 786 $ 67 |
ALLOWANCE FOR LOAN LOSSES
ALLOWANCE FOR LOAN LOSSES | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 One-to four Commercial Home Equity Residential Other Commercial Consumer Total (Dollars in thousands) Beginning balance $ 2,812 $ 3,979 $ 677 $ 185 $ 848 $ 599 $ 205 $ 9,305 Provision 308 112 (12 ) 31 197 (118 ) (203 ) 315 Charge-offs (4 ) (88 ) — — (228 ) — (15 ) (335 ) Recoveries 5 77 — — 55 8 68 213 Ending balance $ 3,121 $ 4,080 $ 665 $ 216 $ 872 $ 489 $ 55 $ 9,498 Three Months Ended March 31, 2016 One-to four Commercial Home Equity Residential Other Commercial Consumer Total (Dollars in thousands) Beginning balance $ 2,455 $ 3,221 $ 1,097 $ 278 $ 1,400 $ 603 $ 407 $ 9,461 Provision 293 587 (214 ) (135 ) 17 (185 ) (363 ) — Charge-offs (46 ) — (37 ) — (317 ) — (10 ) (410 ) Recoveries 23 — 113 — 77 118 116 447 Ending balance $ 2,725 $ 3,808 $ 959 $ 143 $ 1,177 $ 536 $ 150 $ 9,498 The following tables present, by portfolio segment and reserving methodology, the allocation of the allowance for loan losses and the net investment in loans: March 31, 2017 One-to four Commercial Home Equity Residential Other Commercial Consumer Total (Dollars in thousands) Allowance for loan losses Individually evaluated for impairment $ 173 $ 93 $ 2 $ — $ 61 $ 28 $ — $ 357 Collectively evaluated for impairment 2,948 3,987 663 216 811 461 55 9,141 $ 3,121 $ 4,080 $ 665 $ 216 $ 872 $ 489 $ 55 $ 9,498 Loans Receivable Individually evaluated for impairment $ 4,200 $ 7,333 $ 313 $ — $ 1,339 $ 304 $ — $ 13,489 Collectively evaluated for impairment 277,089 287,422 48,107 18,783 66,600 42,593 5,067 745,661 $ 281,289 $ 294,755 $ 48,420 $ 18,783 $ 67,939 $ 42,897 $ 5,067 $ 759,150 December 31, 2016 One-to four Commercial Home Equity Residential Other Commercial Consumer Total (Dollars in thousands) Allowance for loan losses Individually evaluated for impairment $ 201 $ 178 $ 2 $ — $ 175 $ 28 $ — $ 584 Collectively evaluated for impairment 2,611 3,801 675 185 673 571 205 8,721 $ 2,812 $ 3,979 $ 677 $ 185 $ 848 $ 599 $ 205 $ 9,305 Loans Receivable Individually evaluated for impairment $ 3,769 $ 7,601 $ 313 $ — $ 1,682 $ 306 $ — $ 13,671 Collectively evaluated for impairment 273,169 284,502 50,087 18,439 58,444 41,397 4,652 730,690 $ 276,938 $ 292,103 $ 50,400 $ 18,439 $ 60,126 $ 41,703 $ 4,652 $ 744,361 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. Description of segment and class risks Each of our portfolio segments and the classes within those segments are subject to risks that could have an adverse impact on the credit quality of our loan portfolio. Management has identified the most significant risks as described below which are generally similar among our segments and classes. While the list in not exhaustive, it provides a description of the risks that management has determined are the most significant. One-to-four family residential We centrally underwrite each of our one-to-four family residential loans using credit scoring and analytical tools consistent with the Board-approved lending policy and internal procedures based upon industry best practices and regulatory directives. Loans to be sold to secondary market investors must also adhere to investor guidelines. We also evaluate the value and marketability of that collateral. Common risks to each class of non-commercial loans, including one-to-four family residential, include risks that are not specific to individual transactions such as general economic conditions within our markets, particularly unemployment and potential declines in real estate values. Personal events such as death, disability or change in marital status also add risk to non-commercial loans. Commercial real estate Commercial mortgage loans are primarily dependent on the ability of our customers to achieve business results consistent with those projected at loan origination resulting in cash flow sufficient to service the debt. To the extent that a 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: March 31, 2017 Loan Grade One-to Four- Commercial Home Residential Other Commercial Consumer Total (Dollars in thousands) 1 $ — $ 10,101 $ — $ — $ — $ 715 $ — $ 10,816 2 1,193 4,246 — — — 1,188 — 6,627 3 28,516 23,033 1,913 — 3,308 3,511 — 60,281 4 79,966 150,536 3,350 9,497 29,228 21,320 28 293,925 5 24,924 85,508 2,321 3,122 18,103 12,146 308 146,432 6 2,327 10,648 — — 2,466 270 — 15,711 7 2,395 7,358 1 — 208 444 — 10,406 $ 139,321 $ 291,430 $ 7,585 $ 12,619 $ 53,313 $ 39,594 $ 336 $ 544,198 Ungraded Loan Exposure: Performing $ 140,849 $ 3,325 $ 40,722 $ 5,952 $ 14,353 $ 3,303 $ 4,731 $ 213,235 Nonperforming 1,119 — 113 212 273 — — 1,717 Subtotal $ 141,968 $ 3,325 $ 40,835 $ 6,164 $ 14,626 $ 3,303 $ 4,731 $ 214,952 Total $ 281,289 $ 294,755 $ 48,420 $ 18,783 $ 67,939 $ 42,897 $ 5,067 $ 759,150 December 31, 2016 Loan Grade One-to Four- Commercial Home Residential Other Commercial Consumer Total (Dollars in thousands) 1 $ — $ 10,203 $ — $ — $ — $ 431 $ — $ 10,634 2 — 4,287 — — — 1,465 — 5,752 3 27,975 24,626 1,814 586 2,164 2,803 — 59,968 4 75,246 130,857 3,363 10,646 22,293 21,942 51 264,398 5 26,306 95,408 3,476 2,347 17,930 11,344 324 157,135 6 2,587 11,501 — 284 2,470 270 — 17,112 7 1,713 6,686 — — 869 421 — 9,689 $ 133,827 $ 283,568 $ 8,653 $ 13,863 $ 45,726 $ 38,676 $ 375 $ 524,688 Ungraded Loan Exposure: Performing $ 142,222 $ 8,535 $ 41,497 $ 4,576 $ 14,149 $ 3,027 $ 4,230 $ 218,236 Nonperforming 889 — 250 — 251 — 47 1,437 Subtotal $ 143,111 $ 8,535 $ 41,747 $ 4,576 $ 14,400 $ 3,027 $ 4,277 $ 219,673 Total $ 276,938 $ 292,103 $ 50,400 $ 18,439 $ 60,126 $ 41,703 $ 4,652 $ 744,361 Delinquency Analysis of Loans by Class The following tables include an aging analysis of the recorded investment of past-due financing receivables by class. The Company does not accrue interest on loans greater than 90 days past due. March 31, 2017 30-59 60-89 90 Days Total Current Total (Dollars in thousands) One-to four-family residential $ 5,522 $ 417 $ 1,035 $ 6,974 $ 274,315 $ 281,289 Commercial real estate 1,740 — 2,483 4,223 290,532 294,755 Home equity and lines of credit 478 29 94 601 47,819 48,420 Residential construction 300 — 212 512 18,271 18,783 Other construction and land 4,081 41 141 4,263 63,676 67,939 Commercial 343 — 34 377 42,520 42,897 Consumer 6 — — 6 5,061 5,067 Total $ 12,470 $ 487 $ 3,999 $ 16,956 $ 742,194 $ 759,150 December 31, 2016 30-59 60-89 90 Days Total Current Total (Dollars in thousands) One-to four-family residential $ 4,917 $ 1,108 $ 427 $ 6,452 $ 270,486 $ 276,938 Commercial real estate 1,382 1,800 1,638 4,820 287,283 292,103 Home equity and lines of credit 126 44 231 401 49,999 50,400 Residential construction 180 — — 180 18,259 18,439 Other construction and land 468 — 794 1,262 58,864 60,126 Commercial 368 — — 368 41,335 41,703 Consumer 62 1 — 63 4,589 4,652 Total $ 7,503 $ 2,953 $ 3,090 $ 13,546 $ 730,815 $ 744,361 Impaired Loans The following table presents investments in loans considered to be impaired and related information on those impaired loans as of March 31, 2017 and December 31, 2016. March 31, 2017 December 31, 2016 Recorded Unpaid Specific Recorded Unpaid Specific (Dollars in thousands) Loans without a valuation allowance One-to four-family residential $ 3,067 $ 3,167 $ — $ 2,625 $ 2,723 $ — Commercial real estate 5,124 7,302 — 5,526 7,710 — Home equity and lines of credit 213 328 — 213 328 — Residential construction — — — — — — Other construction and land 593 689 — 771 911 — Commercial — — — — — — $ 8,997 $ 11,486 $ — $ 9,135 $ 11,672 $ — Loans with a valuation allowance One-to four-family residential $ 1,133 $ 1,133 $ 172 $ 1,144 $ 1,144 $ 201 Commercial real estate 2,209 2,209 93 2,075 2,075 178 Home equity and lines of credit 100 100 2 100 100 2 Residential construction — — — — — — Other construction and land 746 746 61 911 911 175 Commercial 304 304 28 306 306 28 $ 4,492 $ 4,492 $ 356 $ 4,536 $ 4,536 $ 584 Total One-to four-family residential $ 4,200 $ 4,300 $ 172 $ 3,769 $ 3,867 $ 201 Commercial real estate 7,333 9,511 93 7,601 9,785 178 Home equity and lines of credit 313 428 2 313 428 2 Residential construction — — — — — — Other construction and land 1,339 1,435 61 1,682 1,822 175 Commercial 304 304 28 306 306 28 $ 13,489 $ 15,978 $ 356 $ 13,671 $ 16,208 $ 584 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 March 31, 2017 2016 Average Interest Average Interest (Dollars in thousands) Loans without a valuation allowance One-to four-family residential $ 3,178 $ 32 $ 3,832 $ 36 Commercial real estate 7,317 31 5,811 46 Home equity and lines of credit 328 11 213 2 Other construction and land 691 5 797 8 $ 11,514 $ 79 $ 10,653 $ 92 Loans with a valuation allowance One-to four-family residential $ 1,139 $ 13 $ 2,182 $ 24 Commercial real estate 2,220 21 2,927 27 Home equity and lines of credit 100 1 100 1 Other construction and land 788 9 1,180 10 Commercial 304 5 316 5 $ 4,551 $ 49 $ 6,705 $ 67 Total One-to four-family residential $ 4,317 $ 45 $ 6,014 $ 60 Commercial real estate 9,537 52 8,738 73 Home equity and lines of credit 428 12 313 3 Other construction and land 1,479 14 1,977 18 Commercial 304 5 316 5 $ 16,065 $ 128 $ 17,358 $ 159 Nonperforming Loans The following table summarizes the balances of nonperforming loans as of March 31, 2017 and December 31, 2016. Certain loans classified as Troubled Debt Restructurings (“TDRs”) and impaired loans may be on non-accrual status even though they are not contractually delinquent. March 31, 2017 December 31, 2016 (Dollars in thousands) One-to four-family residential $ 1,885 $ 1,125 Commercial real estate 4,548 3,536 Home equity loans and lines of credit 113 250 Residential construction 212 — Other construction and land 426 1,042 Commercial 66 41 Consumer — 47 Non-performing loans $ 7,250 $ 6,041 Troubled Debt Restructurings (TDR) The following tables summarize TDR loans as of the dates indicated: March 31, 2017 Performing Nonperforming Total TDR’s TDR’s TDR’s (Dollars in thousands) One-to-four family residential $ 3,530 $ 210 $ 3,740 Commercial real estate 4,600 2,397 6,997 Home equity and lines of credit 313 — 313 Other construction and land 1,136 222 1,358 Commercial 304 — 304 $ 9,883 $ 2,829 $ 12,712 December 31, 2016 Performing Nonperforming Total TDR’s TDR’s TDR’s (Dollars in thousands) One-to-four family residential $ 3,560 $ 210 $ 3,770 Commercial real estate 4,327 2,366 6,693 Home equity and lines of credit 313 — 313 Other construction and land 1,377 206 1,583 Commercial 305 — 305 $ 9,882 $ 2,782 $ 12,664 There were no loan modifications that were deemed TDRs at the time of the modification during the three month periods ended March 31, 2017 or 2016. There were no TDR’s that defaulted during the three month periods ending March 31, 2017 and 2016 and which were modified as TDR’s within the previous 12 months. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | NOTE 6. GOODWILL AND OTHER INTANGIBLES The Company had $7.1 million and $2.1 million of goodwill as of March 31, 2017 and December 31, 2016, respectively. The following is a summary of changes in the carrying amounts of goodwill: March 31, December 31, 2017 2016 Dollars in thousands Balance at beginning of period $ 2,065 $ 711 Additions: Prior acquisitions measurement period adjustments 63 — Goodwill from current year acquisitions 5,016 1,354 Balance at end of period $ 7,144 $ 2,065 The Company’s other intangible assets consist of core deposit intangibles related to acquired core deposits. The following is a summary of gross carrying amounts and accumulated amortization of core deposit intangibles: March 31, December 31, 2017 2016 Dollars in thousands Gross balance at beginning of period $ 1,120 $ 590 Additions from acquisitions 1,650 530 Gross balance at end of period 2,770 1,120 Less accumulated amortization (201 ) (141 ) Core deposit intangible, net $ 2,569 $ 979 Core deposit intangibles are amortized using the straight-line method over their estimated useful lives of seven years. Estimated amortization expense for core deposit intangibles for each of the next five years is approximately $0.4 million per year. |
DEPOSITS
DEPOSITS | 3 Months Ended |
Mar. 31, 2017 | |
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 three months ended March 31, 2017 and 2016 and the year ended December 31, 2016. As of and for the As of and for the Year Ended Three Months Ended March 31, December 31, 2017 2016 2016 (Dollars in thousands) Balance Interest Balance Interest Balance Interest Noninterest-bearing demand $ 153,740 $ — $ 118,228 $ — $ 139,136 $ — Interest-bearing demand 173,433 40 105,374 27 122,271 160 Money Market 257,466 219 193,775 148 239,387 770 Savings 48,218 12 35,915 10 40,014 49 Time Deposits 355,134 757 267,420 757 289,205 2,985 $ 987,991 $ 1,028 $ 720,712 $ 942 $ 830,013 $ 3,964 |
BORROWINGS
BORROWINGS | 3 Months Ended |
Mar. 31, 2017 | |
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: March 31, 2017 December 31, 2016 Year of Balance Weighted Balance Weighted (Dollars in thousands) 2017 $ 193,500 0.82 % $ 273,500 0.64 % 2018 30,000 1.19 % 25,000 1.17 % $ 223,500 0.87 % $ 298,500 0.68 % |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Financial Instruments And Hedging Activities | |
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 Balance Sheet Location March 31, December 31, Designated as hedges: Cash flow hedge of borrowings - interest rate swap Other assets $ 533 $ 476 Total $ 533 $ 476 Not designated as hedges: Mortgage banking - loan commitment Other assets $ 67 $ 41 Mortgage banking - forward sales commitment Other assets 8 19 Total $ 75 $ 60 Mortgage banking - loan commitment Other liabilities $ 18 $ — Mortgage banking - forward sales commitment Other liabilities 11 $ — Total $ 29 $ — 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. The structure of the swap agreements is described in the table below (dollars in thousands): Underlyings Designation Notional Payment Provision Life of Swap Junior Subordinated Debt Cash Flow Hedge $ 14,000 Pay 0.958%/Receive 3 month LIBOR 4 yrs FHLB Variable Rate Advance Cash Flow Hedge $ 15,000 Pay 1.054%/Receive 3 month LIBOR 2 yrs FHLB Variable Rate Advance Cash Flow Hedge $ 20,500 Pay 1.354%/Receive 3 month LIBOR 2 yrs The swap contracts involve the payment of fixed-rate amounts to a counterparty in exchange for the Company receiving variable-rate payments 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. The ineffectiveness of the cash flow hedge is recognized through earnings. There was no ineffectiveness during the three months ended March 31, 2017 or 2016. 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 Gain (Loss) Reclassifed from Accumulated Other For the three months ended March 31, December 31, Location 2017 2016 Interest rate swap $ 336 $ 476 Interest Expense $ 18 $ — The Company is 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 | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 10. INCOME TAXES The components of net deferred taxes as of March 31, 2017 and December 31, 2016 are summarized as follows: March 31, December 31, 2017 2016 (Dollars in thousands) Deferred tax assets: Federal net operating loss $ 8,406 $ 8,560 Allowance for loan losses 3,327 3,245 Deferred compensation and post employment benefits 3,355 3,365 State net operating loss 519 557 Valuation reserve for other real estate 509 693 Non-accrual interest 359 375 Loan basis differences 220 238 Unrealized losses on securities 2,692 3,079 Deposit premium 124 155 Other 1,452 1,380 Gross deferred tax assets 20,963 21,647 Deferred tax liabilities: Fixed assets 237 263 Loan servicing rights 975 962 Deferred loan costs 1,027 1,002 Prepaid expenses 48 57 Core deposit intangible 146 158 Other 271 220 Total deferred tax liabilities 2,704 2,662 Net deferred tax asset $ 18,259 $ 18,985 As of March 31, 2017 and December 31, 2016, $0.1 million and $0.2 million, respectively, 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 year. The following table summarizes the amount and expiration dates of the Company’s unused net operating losses: As of March 31, 2017 (Dollars in thousands) Amount Expiration Dates Federal $ 23,976 2027-2034 North Carolina $ 27,166 2024-2028 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
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: Three Months Ended March 31, (Dollars in thousands, except per share amounts) 2017 2016 Numerator: Net income $ 1,300 $ 1,366 Denominator: Weighted-average common shares outstanding - basic 6,464,861 6,517,753 Effect of dilutive shares 56,437 202 Weighted-average common shares outstanding - diluted 6,521,298 6,517,955 Earnings per share - basic $ 0.20 $ 0.21 Earnings per share - diluted $ 0.20 $ 0.21 At March 31, 2017, the Company had 5,000 potentially dilutive shares of common stock that were excluded from diuted earnings per share. These potentially dilutive shares of common stock are issuable upon exercise of stock options granted to employees with a weighted average exercise price of $21.05. At March 31, 2016, the Company had the following potentially dilutive stock options and restricted stock units which were excluded from diluted earnings per share: 371,000 shares of common stock issuable upon exercise of stock options granted to employees and directors with a weighted average exercise price of $18.53; and 157,100 shares of common stock issuable upon completion of vesting of restricted stock units. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 12. ACCUMULATED 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 months ended March 31, 2017 and 2016. Three Months Ended March 31, 2017 Available Held to Deferred Tax Cash Total (Dollars in thousands) Balance, beginning of period $ (5,554 ) $ — $ (202 ) $ 300 $ (5,456 ) Change in deferred tax valuation allowance attributable to net unrealized losses on investment securities available for sale — — 54 — 54 Change in net unrealized holding losses on securities available for sale 921 — — — 921 Reclassification adjustment for net securities gains realized in net income (7 ) — — — (7 ) Reclassification adjustment for other than temporary impairment of securities available for sale 79 — — — 79 Change in unrealized holding gains on cash flow hedge 39 39 Reclassification adjustment for cash flow effectiveness 18 18 Income tax benefit (367 ) — — (21 ) (388 ) Balance, end of period $ (4,928 ) $ — $ (148 ) $ 336 $ (4,740 ) Three Months Ended March 31, 2016 (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 available for sale — — 201 — 201 Change in net unrealized holding losses on securities available for sale 3,455 — — — 3,455 Reclassification adjustment for net securities gains realized in net income (269 ) — — — (269 ) 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 — 431 — — 431 Income tax benefit (1,198 ) (163 ) — — (1,361 ) Balance, end of period $ 1,394 $ (295 ) $ (378 ) $ — $ 721 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 March 31 (Dollars in thousands) 2017 2016 Income Statement Line Item Affected Available-for-sale securities Gains recognized $ 7 $ 269 Gain on sale of investments, net of loss Other than temporary impairment (79 ) — Other than temporary impairment on AFS securities Income tax effect 27 (99 ) Income tax expense Reclassified out of AOCI, net of tax (45 ) 170 Net income Held-to-maturity securities Amortization of unrealized losses — (431 ) Interest income - taxable securities Income tax effect — 163 Income tax expense Reclassified out of AOCI, net of tax — (268 ) Net income Cash flow hedge Interest expense - effective portion (17 ) — Interest expense - FHLB advances Interest expense - effective portion (1 ) — Interest expense - Junior subordinated notes Income tax effect 7 — Income tax expense Reclassified out of AOCI, net of tax (11 ) — Net income Deferred tax valuation allowance Recognition of reversal of valuation allowance (54 ) (201 ) Income tax expense Total reclassified out of AOCI, net of tax $ (110 ) $ (299 ) Net income |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2017 | |
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: March 31, 2017 (Dollars in thousands) Lines of credit $ 109,286 Standby letters of credit 805 $ 110,091 As of March 31, 2017, the Company had outstanding commitments to originate loans as follows: March 31, 2017 Amount Range of Rates (Dollar in thousands) Fixed $ 26,953 3.25% to 6.38% Variable 20,148 2.75% to 6.50% $ 47,101 The allowance for unfunded commitments was $0.1 million at March 31, 2017 and December 31, 2016. 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 March 31, 2017 and December 31, 2016. 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 | 3 Months Ended |
Mar. 31, 2017 | |
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. AFS securities, 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 from a third-party pricing service, which utilizes several sources for valuing fixed-income securities. The market evaluation sources for debt securities include observable inputs rather than significant unobservable inputs and are classified as Level 2. The service provider utilizes pricing models that vary by asset class and include available trade, bid and other market information. Generally, the methodologies include broker quotes, proprietary models, vast descriptive terms and conditions databases, as well as extensive quality control programs. Included in securities are investments in an exchange traded bond fund and U.S. Treasury bonds which are valued by reference to quoted market prices and considered a Level 1 security. Also included in securities are corporate bonds which are valued using significant unobservable inputs and are classified as Level 2 or Level 3 based on market information available during the period. 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. 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. Small Business Investment Company Holdings No ready market exists for our Small Business Investment Company (“SBIC”) holdings and it has no quoted market 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: March 31, 2017 Level 1 Level 2 Level 3 Total (Dollars in thousands) Trading account assets $ 5,499 $ — $ — $ 5,499 Securities available for sale: U.S. government agencies — 3,337 — 3,337 Municipal securities — 150,385 — 150,385 Mortgage-backed securities — 253,661 — 253,661 U.S. Treasury securities 2,512 — — 2,512 Corporate bonds — 20,179 1,056 21,235 Mutual funds 607 — — 607 8,618 427,562 1,056 437,236 Loan servicing rights — — 2,638 2,638 Derivative assets — 533 — 533 Forward sales commitments — — 8 8 Interest rate lock commitments — — 67 67 Total assets $ 8,618 $ 428,095 $ 3,769 $ 440,482 Forward sales commitments $ — $ — $ 11 $ 11 Interest rate lock commitments — — 18 18 Total liabilities $ — $ — $ 29 $ 29 December 31, 2016 Level 1 Level 2 Level 3 Total (Dollars in thousands) Trading account assets $ 5,211 $ — $ — $ 5,211 Securities available for sale: U.S. government agencies — 12,107 — 12,107 Municipal securities — 146,771 — 146,771 Mortgage-backed securities — 217,937 — 217,937 U.S. Treasury securities 2,514 — — 2,514 Corporate bonds — 16,214 2,144 18,358 Mutual funds 604 — — 604 8,329 393,029 2,144 403,502 Loan servicing rights — — 2,603 2,603 Derivative assets — 476 — 476 Forward sales commitments — — 19 19 Interest rate lock commitments — — 41 41 Total assets $ 8,329 $ 393,505 $ 4,807 $ 406,641 There were no liabilities measured at fair value on a recurring basis as of December 31, 2016. The following table presents the changes in assets and liabilities measured at fair value on a recurring basis for which we have utilized Level 3 inputs to determine fair value: Three Months Ended March 31, 2017 2016 (Dollars in thousands) Balance at beginning of period $ 4,807 $ 2,390 Corporate bonds Fair value adjustment (2 ) — Transfer to Level 2 (1,086 ) Loan servicing right activity, included in servicing income, net Capitalization from loans sold 151 128 Fair value adjustment (116 ) (74 ) Mortgage derivative gains(losses) included in other income (14 ) 34 Balance at end of period $ 3,740 $ 2,478 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 March 31, 2017 or December 31, 2016. March 31, 2017 Level 1 Level 2 Level 3 Total (Dollars in thousands) Collateral dependent impaired loans: One-to four family residential $ — $ — $ 2,609 $ 2,609 Commercial real estate — — 5,608 5,608 Home equity loans and lines of credit — — 213 213 Other construction and land — — 593 593 Real estate owned: One-to-four family residential — — 1,353 1,353 Commercial real estate — — 864 864 Other construction and land — — 1,873 1,873 Total assets $ — $ — $ 13,113 $ 13,113 December 31, 2016 Level 1 Level 2 Level 3 Total (Dollars in thousands) Collateral dependent impaired loans: One-to-four family residential $ — $ — $ 2,205 $ 2,205 Commercial real estate — — 6,329 6,329 Home equity loans and lines of credit — — 213 213 Other construction and land — — 809 809 Real estate owned: One-to-four family residential — — 1,336 1,336 Commercial real estate — — 722 722 Other construction and land — — 2,168 2,168 Total assets $ — $ — $ 13,782 $ 13,782 There were no liabilities measured at fair value on a nonrecurring basis as of March 31, 2017 or December 31, 2016. Impaired loans totaling $4.5 million at March 31, 2017 and $4.6 million at December 31, 2016, 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 March 31, 2017. Valuation Technique Unobservable Input General Range Impaired loans Discounted Appraisals Collateral discounts and estimated selling cost 0 – 30% Real estate owned Discounted Appraisals Collateral discounts and estimated selling cost 0 – 30% Corporate bonds Discounted Cash Flows Recent trade pricing 0-8% Loan servicing rights Discounted Cash Flows Prepayment speed 5 - 35% Discount rate 12% - 14% The approximate carrying and estimated fair value of financial instruments are summarized below: Carrying Fair Value Measurements at March 31, 2017 (Dollars in thousands) Amount Total Level 1 Level 2 Level 3 Assets: Cash and equivalents $ 84,217 $ 84,217 $ 84,217 $ — $ — Trading securities 5,499 5,499 5,499 — — Securities available for sale 431,737 431,737 3,119 427,562 1,056 Loans held for sale 2,309 2,492 — 2,492 — Loans receivable, net 759,150 753,182 — — 753,182 Other investments, at cost 12,208 12,208 — 12,208 — Interest receivable 5,287 5,287 — 5,287 — Bank owned life insurance 31,528 31,528 — 31,528 — Loan servicing rights 2,638 2,638 — — 2,638 Forward sales commitments 8 8 — — 8 Interest rate lock commitments 67 67 — — 67 Derivative asset 533 533 — 533 — SBIC investments 2,670 2,670 — — 2,670 Liabilities: Demand deposits $ 632,857 632,857 $ — $ 632,857 $ — Time deposits 355,134 351,214 — — 351,214 Federal Home Loan Bank advances 223,500 233,687 — 233,687 — Junior subordinated debentures 14,433 14,433 — 14,433 — Other borrowings 2,905 2,929 — 2,929 — Accrued interest payable 566 566 — 566 — Forward sales commitments 11 11 — — 11 Interest rate lock commitments 18 18 — — 18 Carrying Fair Value Measurements at December 31, 2016 (Dollars in thousands) Amount Total Level 1 Level 2 Level 3 Assets: Cash and equivalents $ 43,294 $ 43,294 $ 43,294 $ — $ — Trading securities 5,211 5,211 5,211 — — Securities available for sale 398,291 398,291 3,118 393,029 2,144 Loans held for sale 4,584 5,093 — 5,093 — Loans receivable, net 744,361 741,612 — — 741,612 Other investments, at cost 15,261 15,261 — 15,261 — Interest receivable 5,012 5,012 — 5,012 — Bank owned life insurance 31,347 31,347 — 31,347 — Loan servicing rights 2,603 2,603 — — 2,603 Forward sales commitments 19 19 — — 19 Interest rate lock commitments 41 41 — — 41 Derivative asset 476 476 — 476 — SBIC investments 1,666 1,666 — — 1,666 Liabilities: Demand deposits $ 540,808 540,808 $ — $ 540,808 $ — Time deposits 289,205 286,611 — — 286,611 Federal Home Loan Bank advances 298,500 298,667 — 298,667 — Junior subordinated debentures 14,433 14,433 — 14,433 — Other borrowings 2,725 2,907 — 2,907 — Accrued interest payable 254 254 — 254 — |
SHARE REPURCHASES
SHARE REPURCHASES | 3 Months Ended |
Mar. 31, 2017 | |
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. On February 24, 2017, the Company announced the extension of the stock repurchase program through February 23, 2018. The following table summarizes repurchase activity through March 31, 2017: Period Total Number of Average Price Total Number of Shares Maximum Number of January 1, 2017 to January 31, 2017 — $ — — 222,750 February 1, 2017 to February 28, 2017 — $ — — 222,750 March 1, 2017 to March 31, 2017 13,000 $ 23.12 13,000 209,750 Total year-to-date 2017 13,000 $ 23.12 13,000 209,750 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 16. SUBSEQUENT EVENTS On April 28, 2017, the Louisiana Office of Financial Institutions closed First NBC Bank and appointed the FDIC as receiver. The Bank owns $0.7 million of subordinated debt issued by the holding company of First NBC Bank. The Company concluded the investment to be fully impaired. As such, the financial information as of and for the three months ended March 31, 2017 includes other than temporary impairment of $0.7 million before tax. |
ORGANIZATION AND BASIS OF PRE24
ORGANIZATION AND BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
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 commercial bank and has a wholly owned subsidiary, Entegra Services, Inc., which was inactive as of March 31, 2017. 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. |
Business Combinations | Business Combinations |
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, 2017. 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 Note 16. |
Recently Issued Accounting Standards | Recent Accounting Standards Updates In March 2017, the Financial Accounting Standards Board (FASB) issued amendments to Accounting Standards Update (“ASU”) 2017-08 Receivables –Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization of Purchased Callable Debt Securities. In March 2017, the FASB issued amendments to ASU 2017-07 Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension cost and Net Periodic Postretirement Benefit Cost. In January 2017, the FASB issued amendments to ASU 2017-04 Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. In January 2017, the FASB issued amendments to ASU 2017-01 Business Combinations (Topic 80): Clarifying the Definition of a Business. 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. |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
As Recorded by Stearns [Member] | |
Schedule of Assets and Liabilities assumed at the date of acquisition and their initial fair values | The following table summarizes the assets acquired and liabilities assumed at the date of acquisition and their initial fair values: (Dollars in thousands) As Recorded Fair Value As Recorded Assets Cash and cash equivalents $ 1,258 $ — $ 1,258 Loans 7 — 7 Premises and equipment 950 132 1,082 Core deposit intangible — 1,650 1,650 Other assets — — — Total assets acquired 2,215 1,782 3,997 Liabilities Deposits: Noninterest-bearing demand $ 16,032 $ — 16,032 Interest-bearing demand 40,525 — 40,525 Money market 15,368 — 15,368 Savings 7,717 — 7,717 Time deposits 73,480 1,062 74,542 Total deposits 153,122 1,062 154,184 Other liabilities 321 — 321 Total liabilities assumed 153,443 1,062 154,505 Excess of liabilities assumed over assets acquired $ 151,228 $ 720 $ 150,508 Cash received to settle the acquisition $ 145,492 Goodwill $ 5,016 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Investment Securities Tables | |
Schedule of holdings of our trading account | The following table presents the holdings of our trading account as of March 31, 2017 and December 31, 2016: March 31, December 31, 2017 2016 (Dollars in thousands) Trading account $ 5,499 $ 5,211 |
Schedule of investment securities available for sale | The amortized cost and estimated fair values of AFS securities as of March 31, 2017 and December 31, 2016 are summarized as follows: March 31, 2017 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. government agencies $ 3,323 $ 14 $ — $ 3,337 Municipal securities 155,294 333 (5,242 ) 150,385 Mortgage-backed securities U.S. government agencies 160,586 100 (1,887 ) 158,799 SBA securities 36,671 14 (280 ) 36,405 Agency collateralized mortgage obligations 15,055 30 (155 ) 14,930 Non-agency collateralized mortgage obligations 44,363 — (836 ) 43,527 U.S. Treasury securities 2,501 14 (3 ) 2,512 Corporate bonds 21,143 254 (162 ) 21,235 Mutual funds 619 — (12 ) 607 $ 439,555 $ 759 $ (8,577 ) $ 431,737 December 31, 2016 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. government agencies $ 12,076 $ 31 $ — $ 12,107 Municipal securities 152,208 337 (5,774 ) 146,771 Mortgage-backed securities U.S. government agencies 128,820 107 (2,161 ) 126,766 SBA securities 30,002 13 (303 ) 29,712 Agency collateralized mortgage obligations 17,049 14 (173 ) 16,890 Non-agency collateralized mortgage obligations 45,475 2 (908 ) 44,569 U.S. Treasury securities 2,501 15 (2 ) 2,514 Corporate bonds 18,354 171 (167 ) 18,358 Mutual funds 616 — (12 ) 604 $ 407,101 $ 690 $ (9,500 ) $ 398,291 |
Unrealized Losses Related to Available-for-Sale Previously Recognized in Other Comprehensive Income | Information pertaining to securities with gross unrealized losses at March 31, 2017 and December 31, 2016, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: March 31, 2017 Less Than 12 Months More Than 12 Months Total Fair Unrealized Losses Fair Unrealized Losses Fair Unrealized Losses (Dollars in thousands) Available-for-Sale: Municipal securities $ 119,549 $ 5,228 $ 330 $ 14 $ 119,879 $ 5,242 Mortgage-backed securities U.S. government agencies 117,333 1,769 6,263 118 123,596 1,887 SBA 7,067 38 20,035 242 27,102 280 Agency collateralized mortgage obligations 4,575 107 1,002 48 5,577 155 Non-agency collateralized mortgage obligations 40,140 803 4,275 33 44,415 836 U.S. Treasury securities 998 3 — — 998 3 Corporate debt securities 5,705 162 — — 5,705 162 Mutual funds 607 12 — — 607 12 $ 295,974 $ 8,122 $ 31,905 $ 455 $ 327,879 $ 8,577 December 31, 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 $ 122,468 $ 5,759 $ 331 $ 15 $ 122,799 $ 5,774 Mortgage-backed securities U.S. government agencies 101,382 2,068 5,102 93 106,484 2,161 SBA 15,199 145 11,434 158 26,633 303 Agency collateralized mortgage obligations 13,135 127 1,058 46 14,193 173 Non-agency collateralized mortgage obligations 40,378 908 — — 40,378 908 U.S. Treasury securities 1,000 2 — — 1,000 2 Corporate debt securities 6,741 167 — — 6,741 167 Mutual funds 616 12 — — 616 12 $ 300,919 $ 9,188 $ 17,925 $ 312 $ 318,844 $ 9,500 |
Securities Gross Unrealized Losses Position | March 31, 2017 Less Than More Than Total Municipal securities 113 1 114 Mortgage-backed securities U.S. government agencies 80 4 84 SBA 6 13 19 Agency collateralized mortgage obligations 3 1 4 Non-agency collateralized mortgage obligations 19 3 22 U.S. Treasury securities 1 — 1 Corporate debt securities 5 — 5 Mutual funds 1 — 1 228 22 250 December 31, 2016 Less Than More Than Total Municipal securities 129 1 130 Mortgage-backed securities U.S. government agencies 66 5 71 SBA 11 8 19 Agency collateralized mortgage obligations 7 1 8 Non-agency collateralized mortgage obligations 18 — 18 U.S. Treasury securities 1 — 1 Corporate debt securities 8 — 8 240 15 255 |
Proceeds from Sales of Securities Available For Sale and Their Corresponding Gross Realized Gains and Losses | For the three months ended March 31, 2017 and 2016 the Company received proceeds from sales of securities classified as AFS and corresponding gross realized gains and losses as follows: Three Months Ended March 31, 2017 2016 (Dollars in thousands) Gross proceeds $ 17,324 $ 34,717 Gross realized gains 7 287 Gross realized losses — 18 |
Amortized Cost and Estimated Fair Value of Securities by Contractual Maturity | Available-for-Sale Amortized Fair (Dollars in thousands) Less than 1 year $ 1,329 $ 1,317 Over 1 year through 5 years 16,683 16,696 After 5 years through 10 years 27,109 27,110 Over 10 years 137,759 132,953 182,880 178,076 Mortgage-backed securities 256,675 253,661 Total $ 439,555 $ 431,737 |
LOANS RECEIVABLE (Tables)
LOANS RECEIVABLE (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Loans Receivable Tables | |
Loan Receivable | Loans receivable as of March 31, 2017 and December 31, 2016 are summarized as follows: March 31, December 31, 2017 2016 (Dollars in thousands) Real estate mortgage loans: One-to four family residential $ 282,620 $ 278,437 Commercial real estate 296,224 292,879 Home equity loans and lines of credit 48,340 50,334 Residential construction 18,858 18,531 Other construction and land 68,383 60,605 Total real estate loans 714,425 700,786 Commercial and industrial 42,619 41,306 Consumer 4,997 4,594 Total commercial and consumer 47,616 45,900 Loans receivable, gross 762,041 746,686 Less: Net deferred loan fees (1,578 ) (923 ) Fair value discount (786 ) (857 ) Unamortized premium 556 605 Unamortized discount (1,083 ) (1,150 ) . Loans receivable, net of deferred fees $ 759,150 $ 744,361 |
Activity Related to Discount on Purchased Loans | The following tables present the activity related to the discount on individually purchased loans for the three month periods ended March 31, 2017 and 2016: For the Three Months Ended March 31, (Dollars in thousands) 2017 2016 Discount on purchased loans, beginning of period $ 1,150 $ 1,438 Accretion (67 ) (77 ) Discount on purchased loans, end of period $ 1,083 $ 1,361 The following table presents the activity related to the fair value discount on acquired loans for the three month periods ended March 31, 2017 and 2016: For the Three Months Ended March 31, (Dollars in thousands) 2017 2016 Fair value discount, beginning of period $ 857 $ 72 Accretion (71 ) (5 ) Fair value discount, end of period $ 786 $ 67 |
ALLOWANCE FOR LOAN LOSSES (Tabl
ALLOWANCE FOR LOAN LOSSES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Allowance For Loan Losses Tables | |
Changes in Allowance for Loan Losses | The following tables present, by portfolio segment, the changes in the allowance for loan losses: Three Months Ended March 31, 2017 One-to four Commercial Home Equity Residential Other Commercial Consumer Total (Dollars in thousands) Beginning balance $ 2,812 $ 3,979 $ 677 $ 185 $ 848 $ 599 $ 205 $ 9,305 Provision 308 112 (12 ) 31 197 (118 ) (203 ) 315 Charge-offs (4 ) (88 ) — — (228 ) — (15 ) (335 ) Recoveries 5 77 — — 55 8 68 213 Ending balance $ 3,121 $ 4,080 $ 665 $ 216 $ 872 $ 489 $ 55 $ 9,498 Three Months Ended March 31, 2016 One-to four Commercial Home Equity Residential Other Commercial Consumer Total (Dollars in thousands) Beginning balance $ 2,455 $ 3,221 $ 1,097 $ 278 $ 1,400 $ 603 $ 407 $ 9,461 Provision 293 587 (214 ) (135 ) 17 (185 ) (363 ) — Charge-offs (46 ) — (37 ) — (317 ) — (10 ) (410 ) Recoveries 23 — 113 — 77 118 116 447 Ending balance $ 2,725 $ 3,808 $ 959 $ 143 $ 1,177 $ 536 $ 150 $ 9,498 |
Investment in Loans by Portfolio Segment | The following tables present, by portfolio segment and reserving methodology, the allocation of the allowance for loan losses and the net investment in loans: March 31, 2017 One-to four Commercial Home Equity Residential Other Commercial Consumer Total (Dollars in thousands) Allowance for loan losses Individually evaluated for impairment $ 173 $ 93 $ 2 $ — $ 61 $ 28 $ — $ 357 Collectively evaluated for impairment 2,948 3,987 663 216 811 461 55 9,141 $ 3,121 $ 4,080 $ 665 $ 216 $ 872 $ 489 $ 55 $ 9,498 Loans Receivable Individually evaluated for impairment $ 4,200 $ 7,333 $ 313 $ — $ 1,339 $ 304 $ — $ 13,489 Collectively evaluated for impairment 277,089 287,422 48,107 18,783 66,600 42,593 5,067 745,661 $ 281,289 $ 294,755 $ 48,420 $ 18,783 $ 67,939 $ 42,897 $ 5,067 $ 759,150 December 31, 2016 One-to four Commercial Home Equity Residential Other Commercial Consumer Total (Dollars in thousands) Allowance for loan losses Individually evaluated for impairment $ 201 $ 178 $ 2 $ — $ 175 $ 28 $ — $ 584 Collectively evaluated for impairment 2,611 3,801 675 185 673 571 205 8,721 $ 2,812 $ 3,979 $ 677 $ 185 $ 848 $ 599 $ 205 $ 9,305 Loans Receivable Individually evaluated for impairment $ 3,769 $ 7,601 $ 313 $ — $ 1,682 $ 306 $ — $ 13,671 Collectively evaluated for impairment 273,169 284,502 50,087 18,439 58,444 41,397 4,652 730,690 $ 276,938 $ 292,103 $ 50,400 $ 18,439 $ 60,126 $ 41,703 $ 4,652 $ 744,361 |
Credit Risk Profile by Rating | The following tables present the recorded investment in gross loans by loan grade: March 31, 2017 Loan Grade One-to Four- Commercial Home Residential Other Commercial Consumer Total (Dollars in thousands) 1 $ — $ 10,101 $ — $ — $ — $ 715 $ — $ 10,816 2 1,193 4,246 — — — 1,188 — 6,627 3 28,516 23,033 1,913 — 3,308 3,511 — 60,281 4 79,966 150,536 3,350 9,497 29,228 21,320 28 293,925 5 24,924 85,508 2,321 3,122 18,103 12,146 308 146,432 6 2,327 10,648 — — 2,466 270 — 15,711 7 2,395 7,358 1 — 208 444 — 10,406 $ 139,321 $ 291,430 $ 7,585 $ 12,619 $ 53,313 $ 39,594 $ 336 $ 544,198 Ungraded Loan Exposure: Performing $ 140,849 $ 3,325 $ 40,722 $ 5,952 $ 14,353 $ 3,303 $ 4,731 $ 213,235 Nonperforming 1,119 — 113 212 273 — — 1,717 Subtotal $ 141,968 $ 3,325 $ 40,835 $ 6,164 $ 14,626 $ 3,303 $ 4,731 $ 214,952 Total $ 281,289 $ 294,755 $ 48,420 $ 18,783 $ 67,939 $ 42,897 $ 5,067 $ 759,150 December 31, 2016 Loan Grade One-to Four- Commercial Home Residential Other Commercial Consumer Total (Dollars in thousands) 1 $ — $ 10,203 $ — $ — $ — $ 431 $ — $ 10,634 2 — 4,287 — — — 1,465 — 5,752 3 27,975 24,626 1,814 586 2,164 2,803 — 59,968 4 75,246 130,857 3,363 10,646 22,293 21,942 51 264,398 5 26,306 95,408 3,476 2,347 17,930 11,344 324 157,135 6 2,587 11,501 — 284 2,470 270 — 17,112 7 1,713 6,686 — — 869 421 — 9,689 $ 133,827 $ 283,568 $ 8,653 $ 13,863 $ 45,726 $ 38,676 $ 375 $ 524,688 Ungraded Loan Exposure: Performing $ 142,222 $ 8,535 $ 41,497 $ 4,576 $ 14,149 $ 3,027 $ 4,230 $ 218,236 Nonperforming 889 — 250 — 251 — 47 1,437 Subtotal $ 143,111 $ 8,535 $ 41,747 $ 4,576 $ 14,400 $ 3,027 $ 4,277 $ 219,673 Total $ 276,938 $ 292,103 $ 50,400 $ 18,439 $ 60,126 $ 41,703 $ 4,652 $ 744,361 |
Aging Analysis of Recorded Investment of Past-Due Financing Receivables | The following tables include an aging analysis of the recorded investment of past-due financing receivables by class. The Company does not accrue interest on loans greater than 90 days past due. March 31, 2017 30-59 60-89 90 Days Total Current Total (Dollars in thousands) One-to four-family residential $ 5,522 $ 417 $ 1,035 $ 6,974 $ 274,315 $ 281,289 Commercial real estate 1,740 — 2,483 4,223 290,532 294,755 Home equity and lines of credit 478 29 94 601 47,819 48,420 Residential construction 300 — 212 512 18,271 18,783 Other construction and land 4,081 41 141 4,263 63,676 67,939 Commercial 343 — 34 377 42,520 42,897 Consumer 6 — — 6 5,061 5,067 Total $ 12,470 $ 487 $ 3,999 $ 16,956 $ 742,194 $ 759,150 December 31, 2016 30-59 60-89 90 Days Total Current Total (Dollars in thousands) One-to four-family residential $ 4,917 $ 1,108 $ 427 $ 6,452 $ 270,486 $ 276,938 Commercial real estate 1,382 1,800 1,638 4,820 287,283 292,103 Home equity and lines of credit 126 44 231 401 49,999 50,400 Residential construction 180 — — 180 18,259 18,439 Other construction and land 468 — 794 1,262 58,864 60,126 Commercial 368 — — 368 41,335 41,703 Consumer 62 1 — 63 4,589 4,652 Total $ 7,503 $ 2,953 $ 3,090 $ 13,546 $ 730,815 $ 744,361 |
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 March 31, 2017 and December 31, 2016. March 31, 2017 December 31, 2016 Recorded Unpaid Specific Recorded Unpaid Specific (Dollars in thousands) Loans without a valuation allowance One-to four-family residential $ 3,067 $ 3,167 $ — $ 2,625 $ 2,723 $ — Commercial real estate 5,124 7,302 — 5,526 7,710 — Home equity and lines of credit 213 328 — 213 328 — Residential construction — — — — — — Other construction and land 593 689 — 771 911 — Commercial — — — — — — $ 8,997 $ 11,486 $ — $ 9,135 $ 11,672 $ — Loans with a valuation allowance One-to four-family residential $ 1,133 $ 1,133 $ 172 $ 1,144 $ 1,144 $ 201 Commercial real estate 2,209 2,209 93 2,075 2,075 178 Home equity and lines of credit 100 100 2 100 100 2 Residential construction — — — — — — Other construction and land 746 746 61 911 911 175 Commercial 304 304 28 306 306 28 $ 4,492 $ 4,492 $ 356 $ 4,536 $ 4,536 $ 584 Total One-to four-family residential $ 4,200 $ 4,300 $ 172 $ 3,769 $ 3,867 $ 201 Commercial real estate 7,333 9,511 93 7,601 9,785 178 Home equity and lines of credit 313 428 2 313 428 2 Residential construction — — — — — — Other construction and land 1,339 1,435 61 1,682 1,822 175 Commercial 304 304 28 306 306 28 $ 13,489 $ 15,978 $ 356 $ 13,671 $ 16,208 $ 584 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 March 31, 2017 2016 Average Interest Average Interest (Dollars in thousands) Loans without a valuation allowance One-to four-family residential $ 3,178 $ 32 $ 3,832 $ 36 Commercial real estate 7,317 31 5,811 46 Home equity and lines of credit 328 11 213 2 Other construction and land 691 5 797 8 $ 11,514 $ 79 $ 10,653 $ 92 Loans with a valuation allowance One-to four-family residential $ 1,139 $ 13 $ 2,182 $ 24 Commercial real estate 2,220 21 2,927 27 Home equity and lines of credit 100 1 100 1 Other construction and land 788 9 1,180 10 Commercial 304 5 316 5 $ 4,551 $ 49 $ 6,705 $ 67 Total One-to four-family residential $ 4,317 $ 45 $ 6,014 $ 60 Commercial real estate 9,537 52 8,738 73 Home equity and lines of credit 428 12 313 3 Other construction and land 1,479 14 1,977 18 Commercial 304 5 316 5 $ 16,065 $ 128 $ 17,358 $ 159 |
Financing Receivables on Nonaccrual Status | The following table summarizes the balances of nonperforming loans as of March 31, 2017 and December 31, 2016. March 31, 2017 December 31, 2016 (Dollars in thousands) One-to four-family residential $ 1,885 $ 1,125 Commercial real estate 4,548 3,536 Home equity loans and lines of credit 113 250 Residential construction 212 — Other construction and land 426 1,042 Commercial 66 41 Consumer — 47 Non-performing loans $ 7,250 $ 6,041 |
Summary of TDR Loans | The following tables summarize TDR loans as of the dates indicated: March 31, 2017 Performing Nonperforming Total TDR’s TDR’s TDR’s (Dollars in thousands) One-to-four family residential $ 3,530 $ 210 $ 3,740 Commercial real estate 4,600 2,397 6,997 Home equity and lines of credit 313 — 313 Other construction and land 1,136 222 1,358 Commercial 304 — 304 $ 9,883 $ 2,829 $ 12,712 December 31, 2016 Performing Nonperforming Total TDR’s TDR’s TDR’s (Dollars in thousands) One-to-four family residential $ 3,560 $ 210 $ 3,770 Commercial real estate 4,327 2,366 6,693 Home equity and lines of credit 313 — 313 Other construction and land 1,377 206 1,583 Commercial 305 — 305 $ 9,882 $ 2,782 $ 12,664 |
GOODWILL AND OTHER INTANGIBLE29
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in the carrying amounts of goodwill | The following is a summary of changes in the carrying amounts of goodwill: March 31, December 31, 2017 2016 Dollars in thousands Balance at beginning of period $ 2,065 $ 711 Additions: Prior acquisitions measurement period adjustments 63 — Goodwill from current year acquisitions 5,016 1,354 Balance at end of period $ 7,144 $ 2,065 |
Schedule of gross carrying amounts and accumulated amortization of core deposit intangibles | The Company’s other intangible assets consist of core deposit intangibles related to acquired core deposits. The following is a summary of gross carrying amounts and accumulated amortization of core deposit intangibles: March 31, December 31, 2017 2016 Dollars in thousands Gross balance at beginning of period $ 1,120 $ 590 Additions from acquisitions 1,650 530 Gross balance at end of period 2,770 1,120 Less accumulated amortization (201 ) (141 ) Core deposit intangible, net $ 2,569 $ 979 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Deposits Tables | |
Summary of Deposit Balances and Interest Expenses | The following table summarizes deposit balances and interest expense by type of deposit as of and for the three months ended March 31, 2017 and 2016 and the year ended December 31, 2016. As of and for the As of and for the Year Ended Three Months Ended March 31, December 31, 2017 2016 2016 (Dollars in thousands) Balance Interest Balance Interest Balance Interest Noninterest-bearing demand $ 153,740 $ — $ 118,228 $ — $ 139,136 $ — Interest-bearing demand 173,433 40 105,374 27 122,271 160 Money Market 257,466 219 193,775 148 239,387 770 Savings 48,218 12 35,915 10 40,014 49 Time Deposits 355,134 757 267,420 757 289,205 2,985 $ 987,991 $ 1,028 $ 720,712 $ 942 $ 830,013 $ 3,964 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Borrowings Tables | |
Scheduled maturities of FHLB advances and respective weighted average rates | The scheduled maturities and respective weighted average rates of outstanding FHLB advances are as follows for the dates indicated: March 31, 2017 December 31, 2016 Year of Balance Weighted Balance Weighted (Dollars in thousands) 2017 $ 193,500 0.82 % $ 273,500 0.64 % 2018 30,000 1.19 % 25,000 1.17 % $ 223,500 0.87 % $ 298,500 0.68 % |
DERIVATIVE FINANCIAL INSTRUME32
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of fair value of the Company's derivative financial instruments | 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 Balance Sheet Location March 31, December 31, Designated as hedges: Cash flow hedge of borrowings - interest rate swap Other assets $ 533 $ 476 Total $ 533 $ 476 Not designated as hedges: Mortgage banking - loan commitment Other assets $ 67 $ 41 Mortgage banking - forward sales commitment Other assets 8 19 Total $ 75 $ 60 Mortgage banking - loan commitment Other liabilities $ 18 $ — Mortgage banking - forward sales commitment Other liabilities 11 $ — Total $ 29 $ — |
Schedule of Structure of the Swap Agreements | To accomplish this objective, the Company uses interest rate swaps as part of its interest rate risk management strategy. The structure of the swap agreements is described in the table below (dollars in thousands): Underlyings Designation Notional Payment Provision Life of Swap Junior Subordinated Debt Cash Flow Hedge $ 14,000 Pay 0.958%/Receive 3 month LIBOR 4 yrs FHLB Variable Rate Advance Cash Flow Hedge $ 15,000 Pay 1.054%/Receive 3 month LIBOR 2 yrs FHLB Variable Rate Advance Cash Flow Hedge $ 20,500 Pay 1.354%/Receive 3 month LIBOR 2 yrs |
Schedule of Cash Flow Hedges Included in Statement of Income | 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 Gain (Loss) Reclassifed from Accumulated Other For the three months ended March 31, December 31, Location 2017 2016 Interest rate swap $ 336 $ 476 Interest Expense $ 18 $ — |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Income Taxes Tables | |
Schedule of Deferred Tax Assets and Liabilities | The components of net deferred taxes as of March 31, 2017 and December 31, 2016 are summarized as follows: March 31, December 31, 2017 2016 (Dollars in thousands) Deferred tax assets: Federal net operating loss $ 8,406 $ 8,560 Allowance for loan losses 3,327 3,245 Deferred compensation and post employment benefits 3,355 3,365 State net operating loss 519 557 Valuation reserve for other real estate 509 693 Non-accrual interest 359 375 Loan basis differences 220 238 Unrealized losses on securities 2,692 3,079 Deposit premium 124 155 Other 1,452 1,380 Gross deferred tax assets 20,963 21,647 Deferred tax liabilities: Fixed assets 237 263 Loan servicing rights 975 962 Deferred loan costs 1,027 1,002 Prepaid expenses 48 57 Core deposit intangible 146 158 Other 271 220 Total deferred tax liabilities 2,704 2,662 Net deferred tax asset $ 18,259 $ 18,985 |
Schedule of Unused net operating losses and expiration dates | The following table summarizes the amount and expiration dates of the Company’s unused net operating losses: As of March 31, 2017 (Dollars in thousands) Amount Expiration Dates Federal $ 23,976 2027-2034 North Carolina $ 27,166 2024-2028 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share Tables | |
Schedule of reconciliation of average shares outstanding | The following is a reconciliation of the numerator and denominator of basic and diluted net income per share of common stock: Three Months Ended March 31, (Dollars in thousands, except per share amounts) 2017 2016 Numerator: Net income $ 1,300 $ 1,366 Denominator: Weighted-average common shares outstanding - basic 6,464,861 6,517,753 Effect of dilutive shares 56,437 202 Weighted-average common shares outstanding - diluted 6,521,298 6,517,955 Earnings per share - basic $ 0.20 $ 0.21 Earnings per share - diluted $ 0.20 $ 0.21 |
ACCUMULATED OTHER COMPREHENSI35
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Accumulated Other Comprehensive Income Loss Tables | |
Schedule of Accumulated 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 months ended March 31, 2017 and 2016. Three Months Ended March 31, 2017 Available Held to Deferred Tax Cash Total (Dollars in thousands) Balance, beginning of period $ (5,554 ) $ — $ (202 ) $ 300 $ (5,456 ) Change in deferred tax valuation allowance attributable to net unrealized losses on investment securities available for sale — — 54 — 54 Change in net unrealized holding losses on securities available for sale 921 — — — 921 Reclassification adjustment for net securities gains realized in net income (7 ) — — — (7 ) Reclassification adjustment for other than temporary impairment of securities available for sale 79 — — — 79 Change in unrealized holding gains on cash flow hedge 39 39 Reclassification adjustment for cash flow effectiveness 18 18 Income tax benefit (367 ) — — (21 ) (388 ) Balance, end of period $ (4,928 ) $ — $ (148 ) $ 336 $ (4,740 ) Three Months Ended March 31, 2016 (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 available for sale — — 201 — 201 Change in net unrealized holding losses on securities available for sale 3,455 — — — 3,455 Reclassification adjustment for net securities gains realized in net income (269 ) — — — (269 ) 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 — 431 — — 431 Income tax benefit (1,198 ) (163 ) — — (1,361 ) Balance, end of period $ 1,394 $ (295 ) $ (378 ) $ — $ 721 |
Schedule of Consolidated Statements of Operations affected by amounts reclassified from accumulated other comprehensive income (loss) | 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 March 31 (Dollars in thousands) 2017 2016 Income Statement Line Item Affected Available-for-sale securities Gains recognized $ 7 $ 269 Gain on sale of investments, net of loss Other than temporary impairment (79 ) — Other than temporary impairment on AFS securities Income tax effect 27 (99 ) Income tax expense Reclassified out of AOCI, net of tax (45 ) 170 Net income Held-to-maturity securities Amortization of unrealized losses — (431 ) Interest income - taxable securities Income tax effect — 163 Income tax expense Reclassified out of AOCI, net of tax — (268 ) Net income Cash flow hedge Interest expense - effective portion (17 ) — Interest expense - FHLB advances Interest expense - effective portion (1 ) — Interest expense - Junior subordinated notes Income tax effect 7 — Income tax expense Reclassified out of AOCI, net of tax (11 ) — Net income Deferred tax valuation allowance Recognition of reversal of valuation allowance (54 ) (201 ) Income tax expense Total reclassified out of AOCI, net of tax $ (110 ) $ (299 ) Net income |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Commitments And Contingencies Tables | |
Schedule of commitments to fund lines of credit | The following summarizes the Company’s approximate commitments to extend credit: March 31, 2017 (Dollars in thousands) Lines of credit $ 109,286 Standby letters of credit 805 $ 110,091 |
Schedule of Outstanding commitments to originate mortgage loans | The following summarizes the Company’s approximate commitments to extend credit: March 31, 2017 (Dollars in thousands) Lines of credit $ 109,286 Standby letters of credit 805 $ 110,091 |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures Tables | |
Summary of assets and liabilities measured 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: March 31, 2017 Level 1 Level 2 Level 3 Total (Dollars in thousands) Trading account assets $ 5,499 $ — $ — $ 5,499 Securities available for sale: U.S. government agencies — 3,337 — 3,337 Municipal securities — 150,385 — 150,385 Mortgage-backed securities — 253,661 — 253,661 U.S. Treasury securities 2,512 — — 2,512 Corporate bonds — 20,179 1,056 21,235 Mutual funds 607 — — 607 8,618 427,562 1,056 437,236 Loan servicing rights — — 2,638 2,638 Derivative assets — 533 — 533 Forward sales commitments — — 8 8 Interest rate lock commitments — — 67 67 Total assets $ 8,618 $ 428,095 $ 3,769 $ 440,482 Forward sales commitments $ — $ — $ 11 $ 11 Interest rate lock commitments — — 18 18 Total liabilities $ — $ — $ 29 $ 29 December 31, 2016 Level 1 Level 2 Level 3 Total (Dollars in thousands) Trading account assets $ 5,211 $ — $ — $ 5,211 Securities available for sale: U.S. government agencies — 12,107 — 12,107 Municipal securities — 146,771 — 146,771 Mortgage-backed securities — 217,937 — 217,937 U.S. Treasury securities 2,514 — — 2,514 Corporate bonds — 16,214 2,144 18,358 Mutual funds 604 — — 604 8,329 393,029 2,144 403,502 Loan servicing rights — — 2,603 2,603 Derivative assets — 476 — 476 Forward sales commitments — — 19 19 Interest rate lock commitments — — 41 41 Total assets $ 8,329 $ 393,505 $ 4,807 $ 406,641 |
Schedule of changes in assets measured at fair value on a recurring basis | The following table presents the changes in assets and liabilities measured at fair value on a recurring basis for which we have utilized Level 3 inputs to determine fair value: Three Months Ended March 31, 2017 2016 (Dollars in thousands) Balance at beginning of period $ 4,807 $ 2,390 Corporate bonds Fair value adjustment (2 ) — Transfer to Level 2 (1,086 ) Loan servicing right activity, included in servicing income, net Capitalization from loans sold 151 128 Fair value adjustment (116 ) (74 ) Mortgage derivative gains(losses) included in other income (14 ) 34 Balance at end of period $ 3,740 $ 2,478 |
Summary of assets and liabilities measured at a 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 March 31, 2017 or December 31, 2016. March 31, 2017 Level 1 Level 2 Level 3 Total (Dollars in thousands) Collateral dependent impaired loans: One-to four family residential $ — $ — $ 2,609 $ 2,609 Commercial real estate — — 5,608 5,608 Home equity loans and lines of credit — — 213 213 Other construction and land — — 593 593 Real estate owned: One-to-four family residential — — 1,353 1,353 Commercial real estate — — 864 864 Other construction and land — — 1,873 1,873 Total assets $ — $ — $ 13,113 $ 13,113 December 31, 2016 Level 1 Level 2 Level 3 Total (Dollars in thousands) Collateral dependent impaired loans: One-to-four family residential $ — $ — $ 2,205 $ 2,205 Commercial real estate — — 6,329 6,329 Home equity loans and lines of credit — — 213 213 Other construction and land — — 809 809 Real estate owned: One-to-four family residential — — 1,336 1,336 Commercial real estate — — 722 722 Other construction and land — — 2,168 2,168 Total assets $ — $ — $ 13,782 $ 13,782 |
Schedule of significant unobservable inputs used in the fair value measurements | The following table provides information describing the unobservable inputs used in Level 3 fair value measurements at March 31, 2017. Valuation Technique Unobservable Input General Range Impaired loans Discounted Appraisals Collateral discounts and estimated selling cost 0 – 30% Real estate owned Discounted Appraisals Collateral discounts and estimated selling cost 0 – 30% Corporate bonds Discounted Cash Flows Recent trade pricing 0-8% Loan servicing rights Discounted Cash Flows Prepayment speed 5 - 35% Discount rate 12% - 14% |
Schedule of carrying amount and estimated fair value of the Company's financial instruments | The approximate carrying and estimated fair value of financial instruments are summarized below: Carrying Fair Value Measurements at March 31, 2017 (Dollars in thousands) Amount Total Level 1 Level 2 Level 3 Assets: Cash and equivalents $ 84,217 $ 84,217 $ 84,217 $ — $ — Trading securities 5,499 5,499 5,499 — — Securities available for sale 431,737 431,737 3,119 427,562 1,056 Loans held for sale 2,309 2,492 — 2,492 — Loans receivable, net 759,150 753,182 — — 753,182 Other investments, at cost 12,208 12,208 — 12,208 — Interest receivable 5,287 5,287 — 5,287 — Bank owned life insurance 31,528 31,528 — 31,528 — Loan servicing rights 2,638 2,638 — — 2,638 Forward sales commitments 8 8 — — 8 Interest rate lock commitments 67 67 — — 67 Derivative asset 533 533 — 533 — SBIC investments 2,670 2,670 — — 2,670 Liabilities: Demand deposits $ 632,857 632,857 $ — $ 632,857 $ — Time deposits 355,134 351,214 — — 351,214 Federal Home Loan Bank advances 223,500 233,687 — 233,687 — Junior subordinated debentures 14,433 14,433 — 14,433 — Other borrowings 2,905 2,929 — 2,929 — Accrued interest payable 566 566 — 566 — Forward sales commitments 11 11 — — 11 Interest rate lock commitments 18 18 — — 18 Carrying Fair Value Measurements at December 31, 2016 (Dollars in thousands) Amount Total Level 1 Level 2 Level 3 Assets: Cash and equivalents $ 43,294 $ 43,294 $ 43,294 $ — $ — Trading securities 5,211 5,211 5,211 — — Securities available for sale 398,291 398,291 3,118 393,029 2,144 Loans held for sale 4,584 5,093 — 5,093 — Loans receivable, net 744,361 741,612 — — 741,612 Other investments, at cost 15,261 15,261 — 15,261 — Interest receivable 5,012 5,012 — 5,012 — Bank owned life insurance 31,347 31,347 — 31,347 — Loan servicing rights 2,603 2,603 — — 2,603 Forward sales commitments 19 19 — — 19 Interest rate lock commitments 41 41 — — 41 Derivative asset 476 476 — 476 — SBIC investments 1,666 1,666 — — 1,666 Liabilities: Demand deposits $ 540,808 540,808 $ — $ 540,808 $ — Time deposits 289,205 286,611 — — 286,611 Federal Home Loan Bank advances 298,500 298,667 — 298,667 — Junior subordinated debentures 14,433 14,433 — 14,433 — Other borrowings 2,725 2,907 — 2,907 — Accrued interest payable 254 254 — 254 — |
SHARE REPURCHASES (Tables)
SHARE REPURCHASES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Banking and Thrift [Abstract] | |
Schedule of Share Repurchase Activity | The following table summarizes repurchase activity through March 31, 2017: Period Total Number of Average Price Total Number of Shares Maximum Number of January 1, 2017 to January 31, 2017 — $ — — 222,750 February 1, 2017 to February 28, 2017 — $ — — 222,750 March 1, 2017 to March 31, 2017 13,000 $ 23.12 13,000 209,750 Total year-to-date 2017 13,000 $ 23.12 13,000 209,750 |
ORGANIZATION AND BASIS OF PRE39
ORGANIZATION AND BASIS OF PRESENTATION (Details Narrative) | Mar. 31, 2017 |
Organization And Basis Of Presentation Details Narrative | |
Ownership percentage in Macon Capital Trust I | 100.00% |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Feb. 24, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Deposits: | ||||
Goodwill | $ 7,144 | $ 2,065 | $ 711 | |
As Recorded by Stearns [Member] | ||||
Assets | ||||
Cash and cash equivalents | $ 1,258 | |||
Loans | 7 | |||
Premises and equipment | 950 | |||
Core deposit intangible | ||||
Other assets | ||||
Total assets acquired | 2,215 | |||
Deposits: | ||||
Noninterest-bearing demand | 16,032 | |||
Interest-bearing demand | 40,525 | |||
Money market | 15,368 | |||
Savings | 7,717 | |||
Time deposits | 73,480 | |||
Total deposits | 153,122 | |||
Other liabilities | 321 | |||
Total liabilities assumed | 153,443 | |||
Excess of assets acquired over liabilities assumed | 151,228 | |||
Fair Value Adjustments [Member] | ||||
Assets | ||||
Cash and cash equivalents | ||||
Loans | ||||
Premises and equipment | 132 | |||
Core deposit intangible | 1,650 | |||
Other assets | ||||
Total assets acquired | 1,782 | |||
Deposits: | ||||
Noninterest-bearing demand | ||||
Interest-bearing demand | ||||
Money market | ||||
Savings | ||||
Time deposits | 1,062 | |||
Total deposits | 1,062 | |||
Other liabilities | ||||
Total liabilities assumed | 1,062 | |||
Excess of assets acquired over liabilities assumed | 720 | |||
As recorded by the Company [Member] | ||||
Assets | ||||
Cash and cash equivalents | 1,258 | |||
Loans | 7 | |||
Premises and equipment | 1,082 | |||
Core deposit intangible | 1,650 | |||
Other assets | ||||
Total assets acquired | 3,997 | |||
Deposits: | ||||
Noninterest-bearing demand | 16,032 | |||
Interest-bearing demand | 40,525 | |||
Money market | 15,368 | |||
Savings | 7,717 | |||
Time deposits | 74,542 | |||
Total deposits | 154,184 | |||
Other liabilities | 321 | |||
Total liabilities assumed | 154,505 | |||
Excess of assets acquired over liabilities assumed | 150,508 | |||
Cash received to settle the acquisition | 145,492 | |||
Goodwill | $ 5,016 |
INVESTMENT SECURITIES (Details)
INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Trading Securities Cash | $ 5,499 | $ 5,211 |
Amortized Cost | 439,555 | 407,101 |
Gross Unrealized Gains | 759 | 690 |
Gross Unrealized Losses | (8,577) | (9,500) |
Estimated fair value | 431,737 | 398,291 |
U.S. Government Agencies [Member] | ||
Amortized Cost | 3,323 | 12,076 |
Gross Unrealized Gains | 14 | 31 |
Gross Unrealized Losses | ||
Estimated fair value | 3,337 | 12,107 |
Municipal Securities [Member] | ||
Amortized Cost | 155,294 | 152,208 |
Gross Unrealized Gains | 333 | 337 |
Gross Unrealized Losses | (5,242) | (5,774) |
Estimated fair value | 150,385 | 146,771 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Amortized Cost | 160,586 | 128,820 |
Gross Unrealized Gains | 100 | 107 |
Gross Unrealized Losses | (1,887) | (2,161) |
Estimated fair value | 158,799 | 126,766 |
Mortgage-backed Securities, SBA securities [Member] | ||
Amortized Cost | 36,671 | 30,002 |
Gross Unrealized Gains | 14 | 13 |
Gross Unrealized Losses | (280) | (303) |
Estimated fair value | 36,405 | 29,712 |
Mortgage-backed Securities, Collateralized mortgage obligations [Member] | ||
Amortized Cost | 15,055 | 17,049 |
Gross Unrealized Gains | 30 | 14 |
Gross Unrealized Losses | (155) | (173) |
Estimated fair value | 14,930 | 16,890 |
Mortgage-backed Securities, Non-agency collateralized mortgage obligations | ||
Amortized Cost | 44,363 | 45,475 |
Gross Unrealized Gains | 2 | |
Gross Unrealized Losses | (836) | (908) |
Estimated fair value | 43,527 | 44,569 |
U.S. Treasury securities [Member] | ||
Amortized Cost | 2,501 | 2,501 |
Gross Unrealized Gains | 14 | 15 |
Gross Unrealized Losses | (3) | (2) |
Estimated fair value | 2,512 | 2,514 |
Corporate debt securities [Member] | ||
Amortized Cost | 21,143 | 616 |
Gross Unrealized Gains | 254 | |
Gross Unrealized Losses | (162) | (12) |
Estimated fair value | 21,235 | 604 |
Mutual Funds [Member] | ||
Amortized Cost | 619 | 18,354 |
Gross Unrealized Gains | 171 | |
Gross Unrealized Losses | (12) | (167) |
Estimated fair value | $ 607 | $ 18,358 |
INVESTMENT SECURITIES (Details
INVESTMENT SECURITIES (Details 2) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Available for sale, Less Than 12 Months Fair Value | $ 295,974 | $ 300,919 |
Available for sale, Less Than 12 Months Unrealized Losses | 8,122 | 9,188 |
Available for sale, Over 12 Months Fair Value | 31,905 | 17,925 |
Available for sale, Over 12 Months Unrealized Losses | 455 | 312 |
Available for sale, Fair Value | 327,879 | 318,844 |
Available for sale, Unrealized Losses | 8,577 | 9,500 |
Municipal Securities [Member] | ||
Available for sale, Less Than 12 Months Fair Value | 119,549 | 122,468 |
Available for sale, Less Than 12 Months Unrealized Losses | 5,228 | 5,759 |
Available for sale, Over 12 Months Fair Value | 330 | 331 |
Available for sale, Over 12 Months Unrealized Losses | 14 | 15 |
Available for sale, Fair Value | 119,879 | 122,799 |
Available for sale, Unrealized Losses | 5,242 | 5,774 |
U.S. Government Agencies [Member] | ||
Available for sale, Less Than 12 Months Fair Value | 117,333 | 101,382 |
Available for sale, Less Than 12 Months Unrealized Losses | 1,769 | 2,068 |
Available for sale, Over 12 Months Fair Value | 6,263 | 5,102 |
Available for sale, Over 12 Months Unrealized Losses | 118 | 93 |
Available for sale, Fair Value | 123,596 | 106,484 |
Available for sale, Unrealized Losses | 1,887 | 2,161 |
Mortgage-backed Securities, SBA securities [Member] | ||
Available for sale, Less Than 12 Months Fair Value | 7,067 | 15,199 |
Available for sale, Less Than 12 Months Unrealized Losses | 38 | 145 |
Available for sale, Over 12 Months Fair Value | 20,035 | 11,434 |
Available for sale, Over 12 Months Unrealized Losses | 242 | 158 |
Available for sale, Fair Value | 27,102 | 26,633 |
Available for sale, Unrealized Losses | 280 | 303 |
Mortgage-backed Securities, Collateralized mortgage obligations [Member] | ||
Available for sale, Less Than 12 Months Fair Value | 4,575 | 13,135 |
Available for sale, Less Than 12 Months Unrealized Losses | 107 | 127 |
Available for sale, Over 12 Months Fair Value | 1,002 | 1,058 |
Available for sale, Over 12 Months Unrealized Losses | 48 | 46 |
Available for sale, Fair Value | 5,577 | 14,193 |
Available for sale, Unrealized Losses | 155 | 173 |
Mortgage-backed Securities, Non-agency collateralized mortgage obligations | ||
Available for sale, Less Than 12 Months Fair Value | 40,140 | 40,378 |
Available for sale, Less Than 12 Months Unrealized Losses | 803 | 908 |
Available for sale, Over 12 Months Fair Value | 4,275 | |
Available for sale, Over 12 Months Unrealized Losses | 33 | |
Available for sale, Fair Value | 44,415 | 40,378 |
Available for sale, Unrealized Losses | 836 | 908 |
U.S. Treasury securities [Member] | ||
Available for sale, Less Than 12 Months Fair Value | 998 | 1,000 |
Available for sale, Less Than 12 Months Unrealized Losses | 3 | 2 |
Available for sale, Over 12 Months Fair Value | ||
Available for sale, Over 12 Months Unrealized Losses | ||
Available for sale, Fair Value | 998 | 1,000 |
Available for sale, Unrealized Losses | 3 | 2 |
Corporate debt securities [Member] | ||
Available for sale, Less Than 12 Months Fair Value | 5,705 | 6,741 |
Available for sale, Less Than 12 Months Unrealized Losses | 162 | 167 |
Available for sale, Over 12 Months Fair Value | ||
Available for sale, Over 12 Months Unrealized Losses | ||
Available for sale, Fair Value | 5,705 | 6,741 |
Available for sale, Unrealized Losses | 162 | 167 |
Mutual Funds [Member] | ||
Available for sale, Less Than 12 Months Fair Value | 607 | 616 |
Available for sale, Less Than 12 Months Unrealized Losses | 12 | 12 |
Available for sale, Over 12 Months Fair Value | ||
Available for sale, Over 12 Months Unrealized Losses | ||
Available for sale, Fair Value | 607 | 616 |
Available for sale, Unrealized Losses | $ 12 | $ 12 |
INVESTMENT SECURITIES (Detail43
INVESTMENT SECURITIES (Details 3) - Securities | Mar. 31, 2017 | Dec. 31, 2016 |
Number of securities less than 12 months | 228 | 240 |
Number of securities more than 12 months | 22 | 15 |
Number of securities | 250 | 255 |
Municipal Securities [Member] | ||
Number of securities less than 12 months | 113 | 129 |
Number of securities more than 12 months | 1 | 1 |
Number of securities | 114 | 130 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Number of securities less than 12 months | 80 | 66 |
Number of securities more than 12 months | 4 | 5 |
Number of securities | 84 | 71 |
Mortgage-backed Securities, SBA securities [Member] | ||
Number of securities less than 12 months | 6 | 11 |
Number of securities more than 12 months | 13 | 8 |
Number of securities | 19 | 19 |
Mortgage-backed Securities, Collateralized mortgage obligations [Member] | ||
Number of securities less than 12 months | 3 | 7 |
Number of securities more than 12 months | 1 | 1 |
Number of securities | 4 | 8 |
Mortgage-backed Securities, Non-agency collateralized mortgage obligations | ||
Number of securities less than 12 months | 19 | 18 |
Number of securities more than 12 months | 3 | |
Number of securities | 22 | 18 |
U.S. Treasury securities [Member] | ||
Number of securities less than 12 months | 1 | 1 |
Number of securities more than 12 months | ||
Number of securities | 1 | 1 |
Corporate debt securities [Member] | ||
Number of securities less than 12 months | 5 | 8 |
Number of securities more than 12 months | ||
Number of securities | 5 | 8 |
Mutual Funds [Member] | ||
Number of securities less than 12 months | 1 | |
Number of securities more than 12 months | ||
Number of securities | 1 |
INVESTMENT SECURITIES (Detail44
INVESTMENT SECURITIES (Details 4) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Investment Securities Details 4 | |||
Gross proceeds | $ 17,324 | $ 34,717 | |
Gross realized gains | 7 | 287 | |
Gross realized losses | $ 18 | ||
Securities pledged against deposits | $ 184,300 | $ 237,100 |
INVESTMENT SECURITIES (Detail45
INVESTMENT SECURITIES (Details 5) $ in Thousands | Mar. 31, 2017USD ($) |
Investment Securities Details 4 | |
Available for sale, Less than 1 year, Amortized Cost | $ 1,329 |
Available for sale, Over 1 year through 5 years, Amortized Cost | 16,683 |
Available for sale, After 5 years through 10 years, Amortized Cost | 27,109 |
Available for sale, Over 10 years, Amortized Cost | 137,759 |
Available for sale, Before Amortized Cost Available for sale, Mortgage-backed securities, Amortized Cost | 182,880 |
Available for sale, Mortgage-backed securities, Amortized Cost | 256,675 |
Available for sale, Total, Amortized Cost | 439,555 |
Available for Sale, Less than 1 year, Fair Value | 1,317 |
Available for Sale, Over 1 year through 5 years, Fair Value | 16,696 |
Available for Sale, After 5 years through 10 years, Fair Value | 27,110 |
Available for Sale, Over 10 years, Fair Value | 132,953 |
Available for sale, Before Amortized Cost Available for sale, Mortgage-backed securities, Fair Value | 178,076 |
Available for Sale, Mortgage-backed securities, Fair Value | 253,661 |
Available for Sale, Total, Fair Value | $ 431,737 |
LOANS RECEIVABLE (Details)
LOANS RECEIVABLE (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | $ 762,041 | $ 746,686 | ||
Less: Net deferred loan fees | (1,578) | (923) | ||
Fair value discount | (786) | (857) | $ (67) | $ (72) |
Unamortized premium | 556 | 605 | ||
Unamortized discount | (1,083) | (1,150) | ||
Loans receivable, net | 759,150 | 744,361 | ||
One To Four Family Residential [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 282,620 | 278,437 | ||
Loans receivable, net | 281,289 | 276,938 | ||
Commercial Real Estate Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 296,224 | 292,879 | ||
Loans receivable, net | 294,755 | 292,103 | ||
Home Equity Line of Credit [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 48,340 | 50,334 | ||
Loans receivable, net | 48,420 | 50,400 | ||
Residential Construction [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 18,858 | 18,531 | ||
Loans receivable, net | 18,783 | 18,439 | ||
Other Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 68,383 | 60,605 | ||
Loans receivable, net | 67,939 | 60,126 | ||
Real Estate Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 714,425 | 700,786 | ||
Commercial Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 42,619 | 41,306 | ||
Loans receivable, net | 42,897 | 41,703 | ||
Consumer Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 4,997 | 4,594 | ||
Loans receivable, net | 5,067 | 4,652 | ||
Commercial and Consumer Loan [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | $ 47,616 | $ 45,900 |
LOANS RECEIVABLE (Detail Narrat
LOANS RECEIVABLE (Detail Narrative) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Restructuring of loan | $ 12,712 | $ 12,664 |
Federal Reserve Bank Advances [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral to secure funding amount | 90,600 | 89,100 |
Federal Home Loan Bank of Atlanta [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral to secure funding amount | $ 149,200 | $ 144,300 |
LOANS RECEIVABLE (Details 2)
LOANS RECEIVABLE (Details 2) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Discount on purchased loans, beginning of period | $ 923 | |
Discount on purchased loans, end of period | 1,578 | |
Fair value discount, beginning of year | 857 | $ 72 |
Accretion | (71) | (5) |
Fair value discount, end of year | 786 | 67 |
Federal Deposit Insurance Corporation [Member] | ||
Discount on purchased loans, beginning of period | 1,150 | 1,487 |
Accretion | (67) | (77) |
Discount on purchased loans, end of period | $ 1,083 | $ 1,361 |
ALLOWANCE FOR LOAN LOSSES (Deta
ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning balance | $ 9,305 | $ 9,461 |
Provision | 315 | |
Charge-offs | (335) | (410) |
Recoveries | 213 | 447 |
Balance, end of period | 9,498 | 9,498 |
One To Four Family Residential [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning balance | 2,812 | 2,455 |
Provision | 308 | 293 |
Charge-offs | (4) | (46) |
Recoveries | 5 | 23 |
Balance, end of period | 3,121 | 2,725 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning balance | 3,979 | 3,221 |
Provision | 112 | 587 |
Charge-offs | (88) | |
Recoveries | 77 | |
Balance, end of period | 4,080 | 3,808 |
Home Equity Line of Credit [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning balance | 677 | 1,097 |
Provision | (12) | (214) |
Charge-offs | (37) | |
Recoveries | 113 | |
Balance, end of period | 665 | 959 |
Residential Construction [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning balance | 185 | 278 |
Provision | 31 | (135) |
Charge-offs | ||
Recoveries | ||
Balance, end of period | 216 | 143 |
Other Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning balance | 848 | 1,400 |
Provision | 197 | 17 |
Charge-offs | (228) | (317) |
Recoveries | 55 | 77 |
Balance, end of period | 872 | 1,177 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning balance | 599 | 603 |
Provision | (118) | (185) |
Charge-offs | ||
Recoveries | 8 | 118 |
Balance, end of period | 489 | 536 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning balance | 205 | 407 |
Provision | (203) | (363) |
Charge-offs | (15) | (10) |
Recoveries | 68 | 116 |
Balance, end of period | $ 55 | $ 150 |
ALLOWANCE FOR LOAN LOSSES (De50
ALLOWANCE FOR LOAN LOSSES (Details 2) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Allowance for loan losses | ||||
Individually evaluated for impairment | $ 357 | $ 584 | ||
Collectively evaluated for impairment | 9,141 | 8,721 | ||
Balance, end of period | 9,498 | 9,305 | $ 9,498 | $ 9,461 |
Loans Receivable | ||||
Individually evaluated for impairment | 13,489 | 13,671 | ||
Collectively evaluated for impairment | 745,661 | 730,690 | ||
Total Loans Receivable | 759,150 | 744,361 | ||
One To Four Family Residential [Member] | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 173 | 201 | ||
Collectively evaluated for impairment | 2,948 | 2,611 | ||
Balance, end of period | 3,121 | 2,812 | 2,725 | 2,455 |
Loans Receivable | ||||
Individually evaluated for impairment | 4,200 | 3,769 | ||
Collectively evaluated for impairment | 277,089 | 273,169 | ||
Total Loans Receivable | 281,289 | 276,938 | ||
Commercial Real Estate Portfolio Segment [Member] | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 93 | 178 | ||
Collectively evaluated for impairment | 3,987 | 3,801 | ||
Balance, end of period | 4,080 | 3,979 | 3,808 | 3,221 |
Loans Receivable | ||||
Individually evaluated for impairment | 7,333 | 7,601 | ||
Collectively evaluated for impairment | 287,422 | 284,502 | ||
Total Loans Receivable | 294,755 | 292,103 | ||
Home Equity Line of Credit [Member] | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 2 | 2 | ||
Collectively evaluated for impairment | 663 | 675 | ||
Balance, end of period | 665 | 677 | 959 | 1,097 |
Loans Receivable | ||||
Individually evaluated for impairment | 313 | 313 | ||
Collectively evaluated for impairment | 48,107 | 50,087 | ||
Total Loans Receivable | 48,420 | 50,400 | ||
Residential Construction [Member] | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | ||||
Collectively evaluated for impairment | 216 | 185 | ||
Balance, end of period | 216 | 185 | 143 | 278 |
Loans Receivable | ||||
Individually evaluated for impairment | ||||
Collectively evaluated for impairment | 18,783 | 18,439 | ||
Total Loans Receivable | 18,783 | 18,439 | ||
Other Portfolio Segment [Member] | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 61 | 175 | ||
Collectively evaluated for impairment | 811 | 673 | ||
Balance, end of period | 872 | 848 | 1,177 | 1,400 |
Loans Receivable | ||||
Individually evaluated for impairment | 1,339 | 1,682 | ||
Collectively evaluated for impairment | 66,600 | 58,444 | ||
Total Loans Receivable | 67,939 | 60,126 | ||
Commercial Portfolio Segment [Member] | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 28 | 28 | ||
Collectively evaluated for impairment | 461 | 571 | ||
Balance, end of period | 489 | 599 | 536 | 603 |
Loans Receivable | ||||
Individually evaluated for impairment | 304 | 306 | ||
Collectively evaluated for impairment | 42,593 | 41,397 | ||
Total Loans Receivable | 42,897 | 41,703 | ||
Consumer Portfolio Segment [Member] | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | ||||
Collectively evaluated for impairment | 55 | 205 | ||
Balance, end of period | 55 | 205 | $ 150 | $ 407 |
Loans Receivable | ||||
Individually evaluated for impairment | ||||
Collectively evaluated for impairment | 5,067 | 4,652 | ||
Total Loans Receivable | $ 5,067 | $ 4,652 |
ALLOWANCE FOR LOAN LOSSES (De51
ALLOWANCE FOR LOAN LOSSES (Details 3) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Loans receivable, net | $ 759,150 | $ 744,361 |
One To Four Family Residential [Member] | ||
Loans receivable, net | 281,289 | 276,938 |
Commercial Portfolio Segment [Member] | ||
Loans receivable, net | 42,897 | 41,703 |
Home Equity Line of Credit [Member] | ||
Loans receivable, net | 48,420 | 50,400 |
Residential Construction [Member] | ||
Loans receivable, net | 18,783 | 18,439 |
Other Portfolio Segment [Member] | ||
Loans receivable, net | 67,939 | 60,126 |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans receivable, net | 294,755 | 292,103 |
Consumer Portfolio Segment [Member] | ||
Loans receivable, net | 5,067 | 4,652 |
Graded Loan [Member] | ||
Loans receivable, net | 544,198 | 524,688 |
Graded Loan [Member] | One To Four Family Residential [Member] | ||
Loans receivable, net | 139,321 | 133,827 |
Graded Loan [Member] | Commercial Portfolio Segment [Member] | ||
Loans receivable, net | 39,594 | 38,676 |
Graded Loan [Member] | Home Equity Line of Credit [Member] | ||
Loans receivable, net | 7,585 | 8,653 |
Graded Loan [Member] | Residential Construction [Member] | ||
Loans receivable, net | 12,619 | 13,863 |
Graded Loan [Member] | Other Portfolio Segment [Member] | ||
Loans receivable, net | 53,313 | 45,726 |
Graded Loan [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans receivable, net | 291,430 | 283,568 |
Graded Loan [Member] | Consumer Portfolio Segment [Member] | ||
Loans receivable, net | 336 | 375 |
Graded Loan [Member] | Loan Grade One [Member] | ||
Loans receivable, net | 10,816 | 10,634 |
Graded Loan [Member] | Loan Grade One [Member] | One To Four Family Residential [Member] | ||
Loans receivable, net | ||
Graded Loan [Member] | Loan Grade One [Member] | Commercial Portfolio Segment [Member] | ||
Loans receivable, net | 715 | 431 |
Graded Loan [Member] | Loan Grade One [Member] | Home Equity Line of Credit [Member] | ||
Loans receivable, net | ||
Graded Loan [Member] | Loan Grade One [Member] | Residential Construction [Member] | ||
Loans receivable, net | ||
Graded Loan [Member] | Loan Grade One [Member] | Other Portfolio Segment [Member] | ||
Loans receivable, net | ||
Graded Loan [Member] | Loan Grade One [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans receivable, net | 10,101 | 10,203 |
Graded Loan [Member] | Loan Grade One [Member] | Consumer Portfolio Segment [Member] | ||
Loans receivable, net | ||
Graded Loan [Member] | Loan Grade Two [Member] | ||
Loans receivable, net | 6,627 | 5,752 |
Graded Loan [Member] | Loan Grade Two [Member] | One To Four Family Residential [Member] | ||
Loans receivable, net | 1,193 | |
Graded Loan [Member] | Loan Grade Two [Member] | Commercial Portfolio Segment [Member] | ||
Loans receivable, net | 1,188 | 1,465 |
Graded Loan [Member] | Loan Grade Two [Member] | Home Equity Line of Credit [Member] | ||
Loans receivable, net | ||
Graded Loan [Member] | Loan Grade Two [Member] | Residential Construction [Member] | ||
Loans receivable, net | ||
Graded Loan [Member] | Loan Grade Two [Member] | Other Portfolio Segment [Member] | ||
Loans receivable, net | ||
Graded Loan [Member] | Loan Grade Two [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans receivable, net | 4,246 | 4,287 |
Graded Loan [Member] | Loan Grade Two [Member] | Consumer Portfolio Segment [Member] | ||
Loans receivable, net | ||
Graded Loan [Member] | Loan Grade Three [Member] | ||
Loans receivable, net | 60,281 | 59,968 |
Graded Loan [Member] | Loan Grade Three [Member] | One To Four Family Residential [Member] | ||
Loans receivable, net | 28,516 | 27,975 |
Graded Loan [Member] | Loan Grade Three [Member] | Commercial Portfolio Segment [Member] | ||
Loans receivable, net | 3,511 | 2,803 |
Graded Loan [Member] | Loan Grade Three [Member] | Home Equity Line of Credit [Member] | ||
Loans receivable, net | 1,913 | 1,814 |
Graded Loan [Member] | Loan Grade Three [Member] | Residential Construction [Member] | ||
Loans receivable, net | 586 | |
Graded Loan [Member] | Loan Grade Three [Member] | Other Portfolio Segment [Member] | ||
Loans receivable, net | 3,308 | 2,164 |
Graded Loan [Member] | Loan Grade Three [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans receivable, net | 23,033 | 24,626 |
Graded Loan [Member] | Loan Grade Three [Member] | Consumer Portfolio Segment [Member] | ||
Loans receivable, net | ||
Graded Loan [Member] | Loan Grade Four [Member] | ||
Loans receivable, net | 293,925 | 264,398 |
Graded Loan [Member] | Loan Grade Four [Member] | One To Four Family Residential [Member] | ||
Loans receivable, net | 79,966 | 75,246 |
Graded Loan [Member] | Loan Grade Four [Member] | Commercial Portfolio Segment [Member] | ||
Loans receivable, net | 21,320 | 21,942 |
Graded Loan [Member] | Loan Grade Four [Member] | Home Equity Line of Credit [Member] | ||
Loans receivable, net | 3,350 | 3,363 |
Graded Loan [Member] | Loan Grade Four [Member] | Residential Construction [Member] | ||
Loans receivable, net | 9,497 | 10,646 |
Graded Loan [Member] | Loan Grade Four [Member] | Other Portfolio Segment [Member] | ||
Loans receivable, net | 29,228 | 22,293 |
Graded Loan [Member] | Loan Grade Four [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans receivable, net | 150,536 | 130,857 |
Graded Loan [Member] | Loan Grade Four [Member] | Consumer Portfolio Segment [Member] | ||
Loans receivable, net | 28 | 51 |
Graded Loan [Member] | Loan Grade Five [Member] | ||
Loans receivable, net | 146,432 | 157,135 |
Graded Loan [Member] | Loan Grade Five [Member] | One To Four Family Residential [Member] | ||
Loans receivable, net | 24,924 | 26,306 |
Graded Loan [Member] | Loan Grade Five [Member] | Commercial Portfolio Segment [Member] | ||
Loans receivable, net | 12,146 | 11,344 |
Graded Loan [Member] | Loan Grade Five [Member] | Home Equity Line of Credit [Member] | ||
Loans receivable, net | 2,321 | 3,476 |
Graded Loan [Member] | Loan Grade Five [Member] | Residential Construction [Member] | ||
Loans receivable, net | 3,122 | 2,347 |
Graded Loan [Member] | Loan Grade Five [Member] | Other Portfolio Segment [Member] | ||
Loans receivable, net | 18,103 | 17,930 |
Graded Loan [Member] | Loan Grade Five [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans receivable, net | 85,508 | 95,408 |
Graded Loan [Member] | Loan Grade Five [Member] | Consumer Portfolio Segment [Member] | ||
Loans receivable, net | 308 | 324 |
Graded Loan [Member] | Loan Grade Six [Member] | ||
Loans receivable, net | 15,711 | 17,112 |
Graded Loan [Member] | Loan Grade Six [Member] | One To Four Family Residential [Member] | ||
Loans receivable, net | 2,327 | 2,587 |
Graded Loan [Member] | Loan Grade Six [Member] | Commercial Portfolio Segment [Member] | ||
Loans receivable, net | 270 | 270 |
Graded Loan [Member] | Loan Grade Six [Member] | Home Equity Line of Credit [Member] | ||
Loans receivable, net | ||
Graded Loan [Member] | Loan Grade Six [Member] | Residential Construction [Member] | ||
Loans receivable, net | 284 | |
Graded Loan [Member] | Loan Grade Six [Member] | Other Portfolio Segment [Member] | ||
Loans receivable, net | 2,466 | 2,470 |
Graded Loan [Member] | Loan Grade Six [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans receivable, net | 10,648 | 11,501 |
Graded Loan [Member] | Loan Grade Six [Member] | Consumer Portfolio Segment [Member] | ||
Loans receivable, net | ||
Graded Loan [Member] | Loan Grade Seven [Member] | ||
Loans receivable, net | 10,406 | 9,689 |
Graded Loan [Member] | Loan Grade Seven [Member] | One To Four Family Residential [Member] | ||
Loans receivable, net | 2,395 | 1,713 |
Graded Loan [Member] | Loan Grade Seven [Member] | Commercial Portfolio Segment [Member] | ||
Loans receivable, net | 444 | 421 |
Graded Loan [Member] | Loan Grade Seven [Member] | Home Equity Line of Credit [Member] | ||
Loans receivable, net | 1 | |
Graded Loan [Member] | Loan Grade Seven [Member] | Residential Construction [Member] | ||
Loans receivable, net | ||
Graded Loan [Member] | Loan Grade Seven [Member] | Other Portfolio Segment [Member] | ||
Loans receivable, net | 208 | 869 |
Graded Loan [Member] | Loan Grade Seven [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans receivable, net | 7,358 | 6,686 |
Graded Loan [Member] | Loan Grade Seven [Member] | Consumer Portfolio Segment [Member] | ||
Loans receivable, net | ||
UnGraded Loan [Member] | ||
Loans receivable, net | 214,952 | 219,673 |
UnGraded Loan [Member] | One To Four Family Residential [Member] | ||
Loans receivable, net | 141,968 | 143,111 |
UnGraded Loan [Member] | Commercial Portfolio Segment [Member] | ||
Loans receivable, net | 3,303 | 3,027 |
UnGraded Loan [Member] | Home Equity Line of Credit [Member] | ||
Loans receivable, net | 40,835 | 41,747 |
UnGraded Loan [Member] | Residential Construction [Member] | ||
Loans receivable, net | 6,164 | 4,576 |
UnGraded Loan [Member] | Other Portfolio Segment [Member] | ||
Loans receivable, net | 14,626 | 14,400 |
UnGraded Loan [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans receivable, net | 3,325 | 8,535 |
UnGraded Loan [Member] | Consumer Portfolio Segment [Member] | ||
Loans receivable, net | 4,731 | 4,277 |
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | ||
Loans receivable, net | 1,717 | 1,437 |
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | One To Four Family Residential [Member] | ||
Loans receivable, net | 1,119 | 889 |
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Commercial Portfolio Segment [Member] | ||
Loans receivable, net | ||
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Home Equity Line of Credit [Member] | ||
Loans receivable, net | 113 | 250 |
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Residential Construction [Member] | ||
Loans receivable, net | 212 | |
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Other Portfolio Segment [Member] | ||
Loans receivable, net | 273 | 251 |
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans receivable, net | ||
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Consumer Portfolio Segment [Member] | ||
Loans receivable, net | 47 | |
UnGraded Loan [Member] | Performing Financing Receivable [Member] | ||
Loans receivable, net | 213,235 | 218,236 |
UnGraded Loan [Member] | Performing Financing Receivable [Member] | One To Four Family Residential [Member] | ||
Loans receivable, net | 140,849 | 142,222 |
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Commercial Portfolio Segment [Member] | ||
Loans receivable, net | 3,303 | 3,027 |
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Home Equity Line of Credit [Member] | ||
Loans receivable, net | 40,722 | 41,497 |
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Residential Construction [Member] | ||
Loans receivable, net | 5,952 | 4,576 |
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Other Portfolio Segment [Member] | ||
Loans receivable, net | 14,353 | 14,149 |
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans receivable, net | 3,325 | 8,535 |
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Consumer Portfolio Segment [Member] | ||
Loans receivable, net | $ 4,731 | $ 4,230 |
ALLOWANCE FOR LOAN LOSSES (De52
ALLOWANCE FOR LOAN LOSSES (Details 4) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | $ 12,470 | $ 7,503 |
60-89 Days Past | 487 | 2,953 |
90 Days and Over Past Due | 3,999 | 3,090 |
Total Past Due | 16,956 | 13,546 |
Current | 742,194 | 730,815 |
Loans receivable, net | 759,150 | 744,361 |
One To Four Family Residential [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 5,522 | 4,917 |
60-89 Days Past | 417 | 1,108 |
90 Days and Over Past Due | 1,035 | 427 |
Total Past Due | 6,974 | 6,452 |
Current | 274,315 | 270,486 |
Loans receivable, net | 281,289 | 276,938 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 1,740 | 1,382 |
60-89 Days Past | 1,800 | |
90 Days and Over Past Due | 2,483 | 1,638 |
Total Past Due | 4,223 | 4,820 |
Current | 290,532 | 287,283 |
Loans receivable, net | 294,755 | 292,103 |
Home Equity Line of Credit [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 478 | 126 |
60-89 Days Past | 29 | 44 |
90 Days and Over Past Due | 94 | 231 |
Total Past Due | 601 | 401 |
Current | 47,819 | 49,999 |
Loans receivable, net | 48,420 | 50,400 |
Residential Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 300 | 180 |
60-89 Days Past | ||
90 Days and Over Past Due | 212 | |
Total Past Due | 512 | 180 |
Current | 18,271 | 18,259 |
Loans receivable, net | 18,783 | 18,439 |
Other Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 4,081 | 468 |
60-89 Days Past | 41 | |
90 Days and Over Past Due | 141 | 794 |
Total Past Due | 4,263 | 1,262 |
Current | 63,676 | 58,864 |
Loans receivable, net | 67,939 | 60,126 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 343 | 368 |
60-89 Days Past | ||
90 Days and Over Past Due | 34 | |
Total Past Due | 377 | 368 |
Current | 42,520 | 41,335 |
Loans receivable, net | 42,897 | 41,703 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 6 | 62 |
60-89 Days Past | 1 | |
90 Days and Over Past Due | ||
Total Past Due | 6 | 63 |
Current | 5,061 | 4,589 |
Loans receivable, net | $ 5,067 | $ 4,652 |
ALLOWANCE FOR LOAN LOSSES (De53
ALLOWANCE FOR LOAN LOSSES (Details 5) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Impaired [Line Items] | ||
Recorded Balance, without a valuation allowance | $ 8,997 | $ 9,135 |
Unpaid Principal Balance, without a valuation allowance | 11,486 | 11,672 |
Recorded Balance, Recorded Balance, with a valuation allowance | 4,492 | 4,536 |
Unpaid Principal Balance, with a valuation allowance | 4,492 | 4,536 |
Recorded Balance | 13,489 | 13,671 |
Unpaid Principal Balance | 15,978 | 16,208 |
Specific Allowance | 356 | 584 |
One To Four Family Residential [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Balance, without a valuation allowance | 3,067 | 2,625 |
Unpaid Principal Balance, without a valuation allowance | 3,167 | 2,723 |
Recorded Balance, Recorded Balance, with a valuation allowance | 1,133 | 1,144 |
Unpaid Principal Balance, with a valuation allowance | 1,133 | 1,144 |
Recorded Balance | 4,200 | 3,769 |
Unpaid Principal Balance | 4,300 | 3,867 |
Specific Allowance | 172 | 201 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Balance, without a valuation allowance | 5,124 | 5,526 |
Unpaid Principal Balance, without a valuation allowance | 7,302 | 7,710 |
Recorded Balance, Recorded Balance, with a valuation allowance | 2,209 | 2,075 |
Unpaid Principal Balance, with a valuation allowance | 2,209 | 2,075 |
Recorded Balance | 7,333 | 7,601 |
Unpaid Principal Balance | 9,511 | 9,785 |
Specific Allowance | 93 | 178 |
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 | 2 | 2 |
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 | 593 | 771 |
Unpaid Principal Balance, without a valuation allowance | 689 | 911 |
Recorded Balance, Recorded Balance, with a valuation allowance | 746 | 911 |
Unpaid Principal Balance, with a valuation allowance | 746 | 911 |
Recorded Balance | 1,339 | 1,682 |
Unpaid Principal Balance | 1,435 | 1,822 |
Specific Allowance | 61 | 175 |
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 | 304 | 306 |
Unpaid Principal Balance, with a valuation allowance | 304 | 306 |
Recorded Balance | 304 | 306 |
Unpaid Principal Balance | 304 | 306 |
Specific Allowance | $ 28 | $ 28 |
ALLOWANCE FOR LOAN LOSSES (De54
ALLOWANCE FOR LOAN LOSSES (Details 6) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Average Investment in Impaired Loans, without a valuation allowance | $ 11,514 | $ 10,653 |
Interest Income Recognized, without a valuation allowance | 79 | 92 |
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance | 4,551 | 6,705 |
Interest Income Recognized, with a valuation allowance | 49 | 67 |
Average Investment in Impaired Loans | 16,065 | 17,358 |
Interest Income Recognized | 128 | 159 |
One To Four Family Residential [Member] | ||
Average Investment in Impaired Loans, without a valuation allowance | 3,178 | 3,832 |
Interest Income Recognized, without a valuation allowance | 32 | 36 |
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance | 1,139 | 2,182 |
Interest Income Recognized, with a valuation allowance | 13 | 24 |
Average Investment in Impaired Loans | 4,317 | 6,014 |
Interest Income Recognized | 45 | 60 |
Commercial Real Estate Portfolio Segment [Member] | ||
Average Investment in Impaired Loans, without a valuation allowance | 7,317 | 5,811 |
Interest Income Recognized, without a valuation allowance | 31 | 46 |
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance | 2,220 | 2,927 |
Interest Income Recognized, with a valuation allowance | 21 | 27 |
Average Investment in Impaired Loans | 9,537 | 8,738 |
Interest Income Recognized | 52 | 73 |
Home Equity Line of Credit [Member] | ||
Average Investment in Impaired Loans, without a valuation allowance | 328 | 213 |
Interest Income Recognized, without a valuation allowance | 11 | 2 |
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance | 100 | 100 |
Interest Income Recognized, with a valuation allowance | 1 | 1 |
Average Investment in Impaired Loans | 428 | 313 |
Interest Income Recognized | 12 | 3 |
Other Portfolio Segment [Member] | ||
Average Investment in Impaired Loans, without a valuation allowance | 691 | 797 |
Interest Income Recognized, without a valuation allowance | 5 | 8 |
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance | 788 | 1,180 |
Interest Income Recognized, with a valuation allowance | 9 | 10 |
Average Investment in Impaired Loans | 1,479 | 1,977 |
Interest Income Recognized | 14 | 18 |
Commercial Portfolio Segment [Member] | ||
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance | 304 | 316 |
Interest Income Recognized, with a valuation allowance | 5 | 5 |
Average Investment in Impaired Loans | 304 | 316 |
Interest Income Recognized | $ 5 | $ 5 |
ALLOWANCE FOR LOAN LOSSES (De55
ALLOWANCE FOR LOAN LOSSES (Details 7) - Nonperforming Financing Receivable [Member] - Loans [Member] - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Non Performing Loan Receivables and Other Assets [Line Items] | ||
Finance receivable, non-accrual | $ 7,250 | $ 6,041 |
One To Four Family Residential [Member] | ||
Non Performing Loan Receivables and Other Assets [Line Items] | ||
Finance receivable, non-accrual | 1,885 | 1,125 |
Commercial Real Estate Portfolio Segment [Member] | ||
Non Performing Loan Receivables and Other Assets [Line Items] | ||
Finance receivable, non-accrual | 4,548 | 3,536 |
Home Equity Line of Credit [Member] | ||
Non Performing Loan Receivables and Other Assets [Line Items] | ||
Finance receivable, non-accrual | 113 | 250 |
Residential Construction [Member] | ||
Non Performing Loan Receivables and Other Assets [Line Items] | ||
Finance receivable, non-accrual | 212 | |
Other Portfolio Segment [Member] | ||
Non Performing Loan Receivables and Other Assets [Line Items] | ||
Finance receivable, non-accrual | 426 | 1,042 |
Commercial Portfolio Segment [Member] | ||
Non Performing Loan Receivables and Other Assets [Line Items] | ||
Finance receivable, non-accrual | 66 | 41 |
Consumer Portfolio Segment [Member] | ||
Non Performing Loan Receivables and Other Assets [Line Items] | ||
Finance receivable, non-accrual | $ 47 |
ALLOWANCE FOR LOAN LOSSES (De56
ALLOWANCE FOR LOAN LOSSES (Details 8) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Modifications [Line Items] | ||
TDR loans | $ 12,712 | $ 12,664 |
Performing Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 9,883 | 9,882 |
Nonperforming Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 2,829 | 2,782 |
One To Four Family Residential [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 3,740 | 3,770 |
One To Four Family Residential [Member] | Performing Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 3,530 | 3,560 |
One To Four Family Residential [Member] | Nonperforming Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 210 | 210 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 6,997 | 6,693 |
Commercial Real Estate Portfolio Segment [Member] | Performing Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 4,600 | 4,327 |
Commercial Real Estate Portfolio Segment [Member] | Nonperforming Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 2,397 | 2,366 |
Home Equity Line of Credit [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 313 | 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 | 1,358 | 1,583 |
Other Portfolio Segment [Member] | Performing Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 1,136 | 1,377 |
Other Portfolio Segment [Member] | Nonperforming Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 222 | 206 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 304 | 305 |
Commercial Portfolio Segment [Member] | Performing Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 304 | 305 |
Commercial Portfolio Segment [Member] | Nonperforming Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans |
GOODWILL AND OTHER INTANGIBLE57
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Balance at beginning of period | $ 2,065 | $ 711 |
Prior acquisitions measurement period adjustments | 63 | |
Goodwill from current year acquisitions | 5,016 | 1,354 |
Balance at end of period | $ 7,144 | $ 2,065 |
GOODWILL AND OTHER INTANGIBLE58
GOODWILL AND OTHER INTANGIBLE ASSETS (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Gross carrying amount at beginning of period | $ 1,120 | $ 590 |
Additions from acquisitions during the period | 1,650 | 530 |
Gross balance at end of period | 2,770 | 1,120 |
Accumulated amortization | (201) | (141) |
Finite Lived Core Deposits Net | $ 2,569 | 979 |
Amortization expense | $ 400 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Deposits By Type [Line Items] | |||
Balance | $ 987,991 | $ 720,712 | $ 830,013 |
Interest Expense | 1,028 | 942 | 3,964 |
Noninterest-bearing demand [Member] | |||
Deposits By Type [Line Items] | |||
Balance | 153,740 | 118,228 | 139,136 |
Interest Expense | |||
Interest-bearing Deposits [Member] | |||
Deposits By Type [Line Items] | |||
Balance | 173,433 | 105,374 | 122,271 |
Interest Expense | 40 | 27 | 160 |
Money Market Funds [Member] | |||
Deposits By Type [Line Items] | |||
Balance | 257,466 | 193,775 | 239,387 |
Interest Expense | 219 | 148 | 770 |
Savings Deposits [Member] | |||
Deposits By Type [Line Items] | |||
Balance | 48,218 | 35,915 | 40,014 |
Interest Expense | 12 | 10 | 49 |
Time deposit [Member] | |||
Deposits By Type [Line Items] | |||
Balance | 355,134 | 267,420 | 289,205 |
Interest Expense | $ 757 | $ 757 | $ 2,985 |
BORROWINGS (Details)
BORROWINGS (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Federal Home Loan Bank, Advances [Abstract] | ||
2,017 | $ 193,500 | $ 273,500 |
2,018 | 30,000 | 25,000 |
Total | $ 223,500 | $ 298,500 |
Federal Home Loan Bank, Advances, Weighted Average Rate [Abstract] | ||
2,017 | 0.82% | 0.64% |
2,018 | 1.19% | 1.17% |
Total | 0.87% | 0.68% |
DERIVATIVE FINANCIAL INSTRUME61
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Designated as Hedging Instrument [Member] | ||
Asset derivatives, Fair value | $ 533 | $ 476 |
Designated as Hedging Instrument [Member] | Interest rate swaps [Member] | ||
Asset derivatives, Fair value | 533 | 476 |
Not Designated as Hedging Instrument [Member] | ||
Asset derivatives, Fair value | 75 | 60 |
Liability derivatives, Fair value | 29 | |
Not Designated as Hedging Instrument [Member] | Mortgage banking - loan commitment [Member] | ||
Asset derivatives, Fair value | 67 | 41 |
Liability derivatives, Fair value | 18 | |
Not Designated as Hedging Instrument [Member] | Mortgage loan forward sales commitments [Member] | ||
Asset derivatives, Fair value | 8 | 19 |
Liability derivatives, Fair value | $ 11 |
DERIVATIVE FINANCIAL INSTRUME62
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Details 2) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Junior Subordinated Debt [Member] | |
Notional Amount | $ 14 |
Fixed Interest Rate | 0.958% |
Underlying Rate | 3 month LIBOR |
Life of Swap Contract | 4 years |
FHLB Variable Rate Advance [Member] | |
Notional Amount | $ 15 |
Fixed Interest Rate | 1.054% |
Underlying Rate | 3 month LIBOR |
Life of Swap Contract | 2 years |
FHLB Variable Rate Advance 1 [Member] | |
Notional Amount | $ 21 |
Fixed Interest Rate | 1.354% |
Underlying Rate | 3 month LIBOR |
Life of Swap Contract | 2 years |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Federal net operating loss | $ 8,406 | $ 8,560 |
Allowance for loan losses | 3,327 | 3,245 |
Deferred compensation and post employment benefits | 3,355 | 3,365 |
State net operating loss | 519 | 557 |
Valuation reserve for other real estate | 509 | 693 |
Non-accrual interest | 359 | 375 |
Loan basis differences | 220 | 238 |
Unrealized losses on securities | 2,692 | 3,079 |
Deposit premium | 124 | 155 |
Other | 1,452 | 1,380 |
Total deferred tax assets | 20,963 | 21,647 |
Fixed assets | 237 | 263 |
Loan servicing rights | 975 | 962 |
Deferred loan costs | 1,027 | 1,002 |
Prepaid expenses | 48 | 57 |
Core deposit intangible | 146 | 158 |
Other | 271 | 220 |
Total deferred tax liabilities | 2,704 | 2,662 |
Net deferred tax asset | $ 18,259 | $ 18,985 |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Federal [Member] | |
Unused Net Operating Losses | $ 23,976 |
Federal [Member] | Minimum [Member] | |
Expiration Dates | 2,027 |
Federal [Member] | Maximum [Member] | |
Expiration Dates | 2,034 |
North Carolina [Member] | |
Unused Net Operating Losses | $ 27,166 |
North Carolina [Member] | Minimum [Member] | |
Expiration Dates | 2,024 |
North Carolina [Member] | Maximum [Member] | |
Expiration Dates | 2,028 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share Details | ||
Net income | $ 1,300 | $ 1,366 |
Weighted average shares outstanding | 6,464,861 | 6,517,753 |
Effect of dilutive securities | 56,437 | 202 |
Average shares outstanding | 6,521,298 | 6,517,955 |
Earnings per share - basic | $ 0.20 | $ 0.21 |
Earnings per share - diluted | $ 0.20 | $ 0.21 |
Dilutive common stock excluded from diuted earnings per share | 5,000 | 371,000 |
Weighted Average Exercise Price of stock options granted to employees | $ 21.05 | $ 18.53 |
ACCUMULATED OTHER COMPREHENSI66
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Balance, beginning of period | $ (5,456) | $ (1,736) |
Change in deferred tax valuation allowance attributable to unrealized (gain) loss on investment securities available for sale | 54 | 201 |
Change in unrealized holding gain (loss) on securities available for sale | 921 | 3,455 |
Reclassification adjustment for net securities gains realized in net income | (7) | (269) |
Reclassification adjustment for other than temporary impairment realized in net income | 79 | |
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 | 431 | |
Change in unrealized holding gains and losses on cash flow hedge | 39 | |
Reclassification adjustment for cash flow effectiveness | 18 | |
Income tax benefit (expense) | (388) | (1,361) |
Balance, end of period | (4,740) | 721 |
Valuation Allowance of Deferred Tax Assets [Member] | ||
Balance, beginning of period | (202) | (579) |
Change in deferred tax valuation allowance attributable to unrealized (gain) loss on investment securities available for sale | 54 | 201 |
Change in unrealized holding gain (loss) on securities available for sale | ||
Reclassification adjustment for net securities gains realized in net income | ||
Reclassification adjustment for other than temporary impairment 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 | (148) | (378) |
Available-for-sale Securities [Member] | ||
Balance, beginning of period | (5,554) | (594) |
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 | 921 | 3,455 |
Reclassification adjustment for net securities gains realized in net income | (7) | (269) |
Reclassification adjustment for other than temporary impairment realized in net income | 79 | |
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) | (367) | (1,198) |
Balance, end of period | (4,928) | 1,394 |
Held-to-maturity Securities [Member] | ||
Balance, beginning of period | (563) | |
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 | ||
Reclassification adjustment for other than temporary impairment 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 | 431 | |
Income tax benefit (expense) | (163) | |
Balance, end of period | $ (295) | |
Cash Flow Hedge [Member] | ||
Balance, beginning of period | 300 | |
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 | ||
Reclassification adjustment for other than temporary impairment realized in net income | ||
Change in unrealized holding gains and losses on cash flow hedge | 39 | |
Reclassification adjustment for cash flow effectiveness | 18 | |
Income tax benefit (expense) | (21) | |
Balance, end of period | $ 336 |
ACCUMULATED OTHER COMPREHENSI67
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Increase related to transfer from AFS | ||
Interest expense - Junior subordinated notes | $ (137) | (126) |
Cash Flow Hedge [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense - FHLB advances | (17) | |
Interest expense - Junior subordinated notes | (1) | |
Tax effect | 7 | |
Impact, net of tax | (11) | |
Valuation Allowance of Deferred Tax [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Impact, net of tax | (54) | (201) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Impact, net of tax | (110) | (299) |
Gain on sale of investments, net [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Before tax | 7 | 269 |
Interest expense - Other than temporary impairment on AFS securities | (79) | |
Tax effect | 27 | (99) |
Impact, net of tax | (45) | 170 |
Investment Income (Expense) [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Before tax | (431) | |
Tax effect | 163 | |
Impact, net of tax | $ (268) |
COMMITMENTS AND CONTINGENCIES68
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | Mar. 31, 2017USD ($) |
Other Commitments [Line Items] | |
Commitments to fund lines of credit | $ 110,091 |
Lines of credit [Member] | |
Other Commitments [Line Items] | |
Commitments to fund lines of credit | 109,286 |
Standby Letters of Credit [Member] | |
Other Commitments [Line Items] | |
Commitments to fund lines of credit | $ 805 |
COMMITMENTS AND CONTINGENCIES69
COMMITMENTS AND CONTINGENCIES (Details 2) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Fixed | $ 26,953 |
Variable | 20,148 |
Total | $ 47,101 |
Minimum [Member] | |
Fixed (as a percent) | 3.25% |
Variable (as a percent) | 2.75% |
Maximum [Member] | |
Fixed (as a percent) | 6.38% |
Variable (as a percent) | 6.50% |
COMMITMENTS AND CONTINGENCIES70
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
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 | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | $ 440,482 | $ 406,641 |
Liabilities measured at fair value on recurring basis | 29 | |
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 | 437,236 | 403,502 |
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 | 2,512 | |
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 | 3,337 | 12,107 |
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 | 5,211 | |
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 | 8,618 | 8,329 |
Fair Value, Inputs, Level 1 [Member] | 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 | 8,618 | 8,329 |
Fair Value, Inputs, Level 1 [Member] | 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 | 2,512 | |
Fair Value, Inputs, Level 1 [Member] | 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 | 5,211 | |
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 | 428,095 | 393,505 |
Fair Value, Inputs, Level 2 [Member] | 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 | 427,562 | 393,029 |
Fair Value, Inputs, Level 2 [Member] | 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 | 3,337 | 12,107 |
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 | 3,769 | 4,807 |
Liabilities measured at fair value on recurring basis | 29 | |
Fair Value, Inputs, Level 3 [Member] | 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 | 1,056 | 2,144 |
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 | 5,499 | |
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 | 5,499 | |
Mutual Funds [Member] | 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 | 607 | 604 |
Mutual Funds [Member] | Fair Value, Inputs, Level 1 [Member] | 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 | 607 | 604 |
Municipal Securities [Member] | 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 | 150,385 | 146,771 |
Municipal Securities [Member] | Fair Value, Inputs, Level 2 [Member] | 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 | 150,385 | 146,771 |
Collateralized Mortgage Backed Securities [Member] | 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 | 253,661 | 217,937 |
Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | 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 | 253,661 | 217,937 |
Corporate Bond [Member] | 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 | 21,235 | 18,358 |
Corporate Bond [Member] | Fair Value, Inputs, Level 2 [Member] | 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 | 20,179 | 16,214 |
Corporate Bond [Member] | Fair Value, Inputs, Level 3 [Member] | 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 | 1,056 | 2,144 |
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 | 2,638 | 2,603 |
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 | 2,638 | 2,603 |
Derivative Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 533 | 476 |
Derivative Assets [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 | 533 | 476 |
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 | 8 | 19 |
Liabilities measured at fair value on recurring basis | 11 | |
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 | 8 | 19 |
Liabilities measured at fair value on recurring basis | 11 | |
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 | 67 | 41 |
Liabilities measured at fair value on recurring basis | 18 | |
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 | 67 | 41 |
Liabilities measured at fair value on recurring basis | $ 18 | |
U.S. Treasury securities [Member] | 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 | 2,514 | |
U.S. Treasury securities [Member] | Fair Value, Inputs, Level 1 [Member] | 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 | $ 2,514 |
FAIR VALUE DISCLOSURES (Detai72
FAIR VALUE DISCLOSURES (Details 2) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Fair Value Disclosures Details 2 | ||
Balance at beginning of period | $ 4,807 | $ 2,390 |
Corporate bonds Fair value adjustment | (2) | |
Corporate bonds Transfer to Level 2 | (1,086) | |
Capitalization from loans sold | 151 | 128 |
Fair value adjustment | (116) | (74) |
Mortgage derivative gains included in Other income | (14) | 34 |
Balance at end of period | $ 3,740 | $ 2,478 |
FAIR VALUE DISCLOSURES (Detai73
FAIR VALUE DISCLOSURES (Details 3) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Assets measured at fair value on nonrecurring basis | $ 13,113 | $ 13,782 |
Impaired loans measured at present value | 4,500 | 4,600 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets measured at fair value on nonrecurring basis | 13,113 | 13,782 |
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | One To Four Family Residential [Member] | ||
Assets measured at fair value on nonrecurring basis | 2,609 | 2,205 |
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Assets measured at fair value on nonrecurring basis | 5,608 | 6,329 |
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 | 593 | 809 |
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 | 2,609 | 2,205 |
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 | 5,608 | 6,329 |
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 | 593 | 809 |
Fair Value, Measurements, Nonrecurring [Member] | Real Estate Owned [Member] | One To Four Family Residential [Member] | ||
Assets measured at fair value on nonrecurring basis | 1,353 | 1,336 |
Fair Value, Measurements, Nonrecurring [Member] | Real Estate Owned [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Assets measured at fair value on nonrecurring basis | 864 | 722 |
Fair Value, Measurements, Nonrecurring [Member] | Real Estate Owned [Member] | Other Portfolio Segment [Member] | ||
Assets measured at fair value on nonrecurring basis | 1,873 | 2,168 |
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 | 1,353 | 1,336 |
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 | 864 | 722 |
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 | $ 1,873 | $ 2,168 |
FAIR VALUE DISCLOSURES (Detai74
FAIR VALUE DISCLOSURES (Details 4) | 3 Months Ended |
Mar. 31, 2017 | |
Impaired Loans [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Unobservable Input | Collateral discounts and estimated selling cost |
Valuation Technique | Discounted Appraisals |
Impaired Loans [Member] | Minimum [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Collateral discounts and estimated selling cost | 0.00% |
Impaired Loans [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 |
Valuation Technique | Discounted Appraisals |
Real Estate Owned [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] | 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] | |
Valuation Technique | Discounted Cash Flows |
Loan Servicing Rights[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] | Maximum [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Prepayment Speed | 35.00% |
Discount rate | 14.00% |
Corporate Bond [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Unobservable Input | Recent trade pricing |
Valuation Technique | Discounted Cash Flows |
Corporate Bond [Member] | Minimum [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Recent trade pricing | 0.00% |
Corporate Bond [Member] | Maximum [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Recent trade pricing | 8.00% |
FAIR VALUE DISCLOSURES (Detai75
FAIR VALUE DISCLOSURES (Details 5) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Assets: | ||||
Cash and equivalents | $ 84,217 | $ 43,294 | $ 45,900 | $ 40,650 |
Trading securities | 5,499 | 5,211 | ||
Securities available for sale | 431,737 | 398,291 | ||
Other investments, at cost | 12,208 | 15,261 | ||
Interest receivable | 5,287 | 5,012 | ||
Bank owned life insurance | 31,528 | 31,347 | ||
Loan servicing rights | 2,638 | 2,603 | ||
Liabilities: | ||||
Federal Home Loan Bank advances | 223,500 | 298,500 | ||
Junior subordinated debentures | 14,433 | 14,433 | ||
Other borrowings | 2,905 | 2,725 | ||
Accrued interest payable | 566 | 254 | ||
Reported Value Measurement [Member] | ||||
Assets: | ||||
Cash and equivalents | 84,217 | 43,294 | ||
Trading securities | 5,499 | 5,211 | ||
Securities available for sale | 431,737 | 398,291 | ||
Loans held for sale | 2,309 | 4,584 | ||
Loans receivable, net | 759,150 | 744,361 | ||
Other investments, at cost | 12,208 | 15,261 | ||
Interest receivable | 5,287 | 5,012 | ||
Bank owned life insurance | 31,528 | 31,347 | ||
Loan servicing rights | 2,638 | 2,603 | ||
Derivative asset | 533 | 476 | ||
SBIC investments | 2,670 | 1,666 | ||
Liabilities: | ||||
Demand deposits | 632,857 | 540,808 | ||
Time deposits | 355,134 | 289,205 | ||
Federal Home Loan Bank advances | 223,500 | 298,500 | ||
Junior subordinated debentures | 14,433 | 14,433 | ||
Other borrowings | 2,905 | 2,725 | ||
Accrued interest payable | 566 | 254 | ||
Reported Value Measurement [Member] | Forward Sales Commitments [Member] | ||||
Assets: | ||||
Commitments | 8 | 19 | ||
Liabilities: | ||||
Commitments | 11 | |||
Reported Value Measurement [Member] | Interest Rate Lock Commitments [Member] | ||||
Assets: | ||||
Commitments | 67 | 41 | ||
Liabilities: | ||||
Commitments | 18 | |||
Portion at Fair Value Measurement [Member] | ||||
Assets: | ||||
Cash and equivalents | 84,217 | 43,294 | ||
Trading securities | 5,499 | 5,211 | ||
Securities available for sale | 431,737 | 398,291 | ||
Loans held for sale | 2,492 | 5,093 | ||
Loans receivable, net | 753,182 | 741,612 | ||
Other investments, at cost | 12,208 | 15,261 | ||
Interest receivable | 5,287 | 5,012 | ||
Bank owned life insurance | 31,528 | 31,347 | ||
Loan servicing rights | 2,638 | 2,603 | ||
Derivative asset | 533 | 476 | ||
SBIC investments | 2,670 | 1,666 | ||
Liabilities: | ||||
Demand deposits | 632,857 | 540,808 | ||
Time deposits | 351,214 | 286,611 | ||
Federal Home Loan Bank advances | 233,687 | 298,667 | ||
Junior subordinated debentures | 14,433 | 14,433 | ||
Other borrowings | 2,929 | 2,907 | ||
Accrued interest payable | 566 | 254 | ||
Portion at Fair Value Measurement [Member] | Forward Sales Commitments [Member] | ||||
Assets: | ||||
Commitments | 8 | 19 | ||
Liabilities: | ||||
Commitments | 11 | |||
Portion at Fair Value Measurement [Member] | Interest Rate Lock Commitments [Member] | ||||
Assets: | ||||
Commitments | 67 | 41 | ||
Liabilities: | ||||
Commitments | 18 | |||
Fair Value, Inputs, Level 1 [Member] | Portion at Fair Value Measurement [Member] | ||||
Assets: | ||||
Cash and equivalents | 84,217 | 43,294 | ||
Trading securities | 5,499 | 5,211 | ||
Securities available for sale | 3,119 | 3,118 | ||
Loans held for sale | ||||
Loans receivable, net | ||||
Other investments, at cost | ||||
Interest receivable | ||||
Bank owned life insurance | ||||
Loan servicing rights | ||||
Derivative asset | ||||
SBIC investments | ||||
Liabilities: | ||||
Demand deposits | ||||
Time deposits | ||||
Federal Home Loan Bank advances | ||||
Junior subordinated debentures | ||||
Other borrowings | ||||
Accrued interest payable | ||||
Fair Value, Inputs, Level 2 [Member] | Portion at Fair Value Measurement [Member] | ||||
Assets: | ||||
Cash and equivalents | ||||
Trading securities | ||||
Securities available for sale | 427,562 | 393,029 | ||
Loans held for sale | 2,492 | 5,093 | ||
Loans receivable, net | ||||
Other investments, at cost | 12,208 | 15,261 | ||
Interest receivable | 5,287 | 5,012 | ||
Bank owned life insurance | 31,528 | 31,347 | ||
Loan servicing rights | ||||
Derivative asset | 533 | 476 | ||
SBIC investments | ||||
Liabilities: | ||||
Demand deposits | 632,857 | 540,808 | ||
Time deposits | ||||
Federal Home Loan Bank advances | 233,687 | 298,667 | ||
Junior subordinated debentures | 14,433 | 14,433 | ||
Other borrowings | 2,929 | 2,907 | ||
Accrued interest payable | 566 | 254 | ||
Fair Value, Inputs, Level 3 [Member] | Portion at Fair Value Measurement [Member] | ||||
Assets: | ||||
Cash and equivalents | ||||
Trading securities | ||||
Securities available for sale | 1,056 | 2,144 | ||
Loans held for sale | ||||
Loans receivable, net | 753,182 | 741,612 | ||
Other investments, at cost | ||||
Interest receivable | ||||
Bank owned life insurance | ||||
Loan servicing rights | 2,638 | 2,603 | ||
Derivative asset | ||||
SBIC investments | 2,670 | 1,666 | ||
Liabilities: | ||||
Demand deposits | ||||
Time deposits | 351,214 | 286,611 | ||
Federal Home Loan Bank advances | ||||
Junior subordinated debentures | ||||
Other borrowings | ||||
Accrued interest payable | ||||
Fair Value, Inputs, Level 3 [Member] | Portion at Fair Value Measurement [Member] | Forward Sales Commitments [Member] | ||||
Assets: | ||||
Commitments | 8 | 19 | ||
Liabilities: | ||||
Commitments | 11 | |||
Fair Value, Inputs, Level 3 [Member] | Portion at Fair Value Measurement [Member] | Interest Rate Lock Commitments [Member] | ||||
Assets: | ||||
Commitments | 67 | $ 41 | ||
Liabilities: | ||||
Commitments | $ 18 |
SHARE REPURCHASES (Details)
SHARE REPURCHASES (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2017 | Jan. 28, 2016 | |
Share Repurchases Details | ||
Number of Shares Authorized to be Repurchased | 327,318 | |
Number of Shares Purchased | 13,000 | |
Average Price Paid per Share | $ 23.12 | |
Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | 209,750 |