Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 09, 2019 | Jun. 30, 2018 | |
Document And Entity Information | |||
Entity Registrant Name | ENTEGRA FINANCIAL CORP. | ||
Entity Central Index Key | 0001522327 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Is Entity a Well-known Seasoned Issuer? | No | ||
Is Entity a Voluntary Filer? | No | ||
Is Entity's Reporting Status Current? | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 201,900,000 | ||
Entity Common Stock, Shares Outstanding | 6,920,143 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2018 | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | true | ||
Entity Small Business | false | ||
Entity Ex Transition Period | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and due from banks | $ 15,409 | $ 15,534 |
Interest-earning deposits | 53,710 | 93,933 |
Cash and cash equivalents | 69,119 | 109,467 |
Investments - equity securities | 6,178 | 6,095 |
Investments - available for sale | 359,738 | 342,863 |
Other investments, at cost | 12,039 | 12,386 |
Loans held for sale (includes $2,431 and $0 at fair value) | 7,570 | 3,845 |
Loans receivable | 1,076,069 | 1,005,139 |
Allowance for loan losses | (11,985) | (10,887) |
Fixed assets, net | 26,385 | 24,113 |
Real estate owned | 2,493 | 2,568 |
Accrued interest receivable | 6,443 | 5,405 |
Bank owned life insurance | 32,886 | 32,150 |
Small Business Investment Company Holdings, at cost | 3,839 | 3,491 |
Net deferred tax asset | 7,551 | 8,831 |
Loan servicing rights | 2,837 | 2,756 |
Goodwill | 23,903 | 23,903 |
Core deposit intangible | 3,577 | 4,269 |
Other assets | 7,799 | 5,055 |
Total assets | 1,636,441 | 1,581,449 |
Liabilities: | ||
Core deposits | 795,261 | 763,422 |
Retail certificates of deposit | 349,971 | 357,630 |
Wholesale deposits | 76,008 | 41,125 |
Federal Home Loan Bank advances | 213,500 | 223,500 |
Junior subordinated notes | 14,433 | 14,433 |
Other borrowings | 9,299 | 8,623 |
Post employment benefits | 9,305 | 10,174 |
Accrued interest payable | 1,647 | 935 |
Other liabilities | 4,145 | 10,294 |
Total liabilities | 1,473,569 | 1,430,136 |
Commitments and contingencies | ||
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; 6,917,703 and 6,879,191 shares issued and outstanding as of December 31, 2018 and 2017, respectively | ||
Common stock held by Rabbi Trust, at cost; 17,672 shares at both December 31, 2018 and 2017 | (379) | (379) |
Additional paid in capital | 74,051 | 72,997 |
Retained earnings | 92,624 | 78,718 |
Accumulated other comprehensive loss | (3,424) | (23) |
Total shareholders' equity | 162,872 | 151,313 |
Total liabilities and shareholders' equity | $ 1,636,441 | $ 1,581,449 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Loans at fair value | $ 2,431 | $ 0 |
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 | 6,917,703 | 6,879,191 |
Common stock, shares outstanding | 6,917,703 | 6,879,191 |
Common Stock held by Rabbi Trust | 17,672 | 17,672 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest income: | |||
Interest and fees on loans | $ 49,987 | $ 38,712 | $ 32,324 |
Interest on tax exempt loans | 402 | 380 | 337 |
Taxable securities | 7,191 | 7,025 | 5,628 |
Tax-exempt securities | 2,601 | 3,117 | 1,510 |
Interest-earning deposits | 1,716 | 676 | 210 |
Other | 717 | 619 | 511 |
Total interest and dividend income | 62,614 | 50,529 | 40,520 |
Interest expense: | |||
Deposits | 8,118 | 4,474 | 3,964 |
Federal Home Loan Bank advances | 4,130 | 2,443 | 1,419 |
Junior subordinated notes | 562 | 557 | 532 |
Other borrowings | 479 | 210 | 117 |
Interest Expense | 13,289 | 7,684 | 6,032 |
Net interest income | 49,325 | 42,845 | 34,488 |
Provision for loan losses | 1,201 | 1,897 | 274 |
Net interest income after provision for loan losses | 48,124 | 40,948 | 34,214 |
Noninterest income: | |||
Servicing income, net | 546 | 401 | 487 |
Mortgage banking | 958 | 1,118 | 904 |
Gain on sale of SBA loans | 558 | 546 | 928 |
Gain (loss) on sale of investments | (543) | (1,102) | 1,216 |
Other than temporary impairment | (757) | ||
Equity securities gains (losses) | (344) | 686 | 328 |
Service charges on deposit accounts | 1,673 | 1,672 | 1,537 |
Interchange fees | 1,102 | 913 | 732 |
Bank owned life insurance | 872 | 803 | 489 |
Other | 1,168 | 726 | 450 |
Total noninterest income | 5,990 | 5,006 | 7,071 |
Noninterest expenses: | |||
Compensation and employee benefits | 22,643 | 20,168 | 17,164 |
Net occupancy | 4,508 | 4,089 | 3,534 |
Federal Home Loan Bank prepayment penalties | 118 | ||
Marketing and advertising | 907 | 953 | 1,070 |
Federal deposit insurance | 799 | 513 | 562 |
Professional and advisory | 1,436 | 1,237 | 959 |
Data processing | 2,077 | 1,684 | 1,554 |
Merger-related expenses | 564 | 3,086 | 2,197 |
Net cost of operation of real estate owned | 256 | 213 | 730 |
Other | 3,882 | 3,904 | 3,526 |
Total noninterest expenses | 37,072 | 35,847 | 31,414 |
Income before taxes | 17,042 | 10,107 | 9,871 |
Income tax expense (benefit) | 3,127 | 7,528 | 3,495 |
Net income | $ 13,915 | $ 2,579 | $ 6,376 |
Earnings per common share: | |||
Earnings per share - basic | $ 2.02 | $ 0.39 | $ 0.98 |
Earnings per share - diluted | $ 1.99 | $ 0.39 | $ 0.98 |
Weighted average common shares outstanding: | |||
Common shares outstanding - Basic | 6,892,207 | 6,561,699 | 6,477,284 |
Common shares outstanding - Diluted | 7,007,925 | 6,658,614 | 6,489,931 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 13,915 | $ 2,579 | $ 6,376 |
Other comprehensive income (loss): | |||
Change in unrealized holding gains and losses on securities available for sale | (4,956) | 6,347 | (6,652) |
Reclassification adjustment for securities losses (gains) realized in net income | 970 | 1,102 | (1,216) |
Reclassification adjustment for other then temporary impairment of securities available for sale | 757 | ||
Amortization of unrealized loss on securities transferred to held to maturity | 578 | ||
Reduction in unrealized loss related to held to maturity securities transferred to available-for-sale | 325 | ||
Change in deferred tax valuation allowance attributable to unrealized gains and losses on investment securities available for sale | 202 | 377 | |
Change in unrealized holding gains and losses on cash flow hedge | 2 | 99 | 444 |
Reclassification adjustment for cash flow hedge effectiveness | (431) | (14) | 32 |
Other comprehensive income (loss), before tax | (4,415) | 8,493 | (6,112) |
Income tax effect related to items of other comprehensive income (loss) | 1,005 | (3,060) | 2,392 |
Other comprehensive income (loss), after tax | (3,410) | 5,433 | (3,720) |
Comprehensive income (loss) | $ 10,505 | $ 8,012 | $ 2,656 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Common Stock held by Rabbi Trust | Total |
Beginning Balance at Dec. 31, 2015 | $ 63,722 | $ 69,763 | $ (1,736) | $ (279) | $ 131,469 | |
Beginning Balance (in shares) at Dec. 31, 2015 | 6,546,375 | |||||
Net income (loss) | 6,376 | 6,376 | ||||
Other comprehensive income, net of tax | (3,720) | (3,720) | ||||
Stock compensation expense | 864 | 864 | ||||
Common stock issued for acquisition | ||||||
Transfer of Rabbi Trust investments to common stock | ||||||
Vesting of restricted stock units, net shares surrendered | (87) | (87) | ||||
Vesting of restricted stock units (in shares) | 25,743 | |||||
Repurchase of common stock | (1,835) | (1,835) | ||||
Repurchase of common stock (in shares) | (104,568) | |||||
Ending Balance at Dec. 31, 2016 | 62,664 | 76,139 | (5,456) | (279) | 133,068 | |
Ending Balance (in shares) at Dec. 31, 2016 | 6,467,550 | |||||
Net income (loss) | 2,579 | 2,579 | ||||
Other comprehensive income, net of tax | 5,433 | 5,433 | ||||
Stock compensation expense | 917 | 917 | ||||
Common stock issued for acquisition | 9,872 | 9,872 | ||||
Common stock issued for acquisition, Shares | 395,666 | |||||
Transfer of Rabbi Trust investments to common stock | (100) | (100) | ||||
Stock options exercised | (6) | (6) | ||||
Stock options exercised,net of shares surrendered (in shares) | 476 | |||||
Vesting of restricted stock units, net shares surrendered | (149) | (149) | ||||
Vesting of restricted stock units (in shares) | 28,499 | |||||
Repurchase of common stock | (301) | (301) | ||||
Repurchase of common stock (in shares) | (13,000) | |||||
Ending Balance at Dec. 31, 2017 | 72,997 | 78,718 | (23) | (379) | 151,313 | |
Ending Balance (in shares) at Dec. 31, 2017 | 6,879,191 | |||||
Net income (loss) | 13,915 | 13,915 | ||||
Other comprehensive income, net of tax | (3,410) | (3,410) | ||||
Stock compensation expense | 1,085 | 1,085 | ||||
Common stock issued for acquisition | ||||||
Transfer of Rabbi Trust investments to common stock | ||||||
Stock options exercised | 116 | 116 | ||||
Stock options exercised,net of shares surrendered (in shares) | 8,081 | |||||
Vesting of restricted stock units, net shares surrendered | (147) | (147) | ||||
Vesting of restricted stock units (in shares) | 30,431 | |||||
Repurchase of common stock | ||||||
Cumulative effect of change in accounting principal | (9) | 9 | 9 | |||
Ending Balance at Dec. 31, 2018 | $ 74,051 | $ 92,624 | $ (3,424) | $ (379) | $ 162,872 | |
Ending Balance (in shares) at Dec. 31, 2018 | 6,917,703 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 13,915 | $ 2,579 | $ 6,376 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, amortization and accretion | (247) | (547) | 631 |
Investment amortization, net | 3,522 | 4,613 | 2,445 |
Equity securities losses (gains) | 344 | (686) | (328) |
Provision for loan losses | 1,201 | 1,897 | 274 |
Provision for real estate owned | 98 | 292 | 655 |
Share-based compensation expense | 1,085 | 917 | 864 |
Change in net deferred tax asset | 2,335 | 7,097 | 2,922 |
Loss (gain) on sales of securities | 543 | 1,102 | (1,216) |
Other than temporary impairment on investments | 757 | ||
Income on bank owned life insurance, net | (872) | (803) | (489) |
Mortgage banking income, net | (958) | (1,118) | (904) |
Gain on sales of SBA loans | (558) | (546) | (928) |
Net realized gain on sale of real estate owned | (4) | (268) | (222) |
Loans originated for sale | (49,063) | (50,644) | (40,288) |
Proceeds from sale of loans originated for sale | 46,854 | 51,904 | 45,884 |
Net change in operating assets and liabilities: | |||
Accrued interest receivable | (1,038) | 32 | (906) |
Loan servicing rights | (81) | (153) | (259) |
Other assets | (2,724) | 675 | 2,053 |
Postemployment benefits | (869) | (37) | (13) |
Accrued interest payable | 712 | 276 | 11 |
Other liabilities | (4,353) | 486 | 628 |
Net cash provided by operating activities | 9,842 | 17,825 | 17,190 |
Activity for investment securities: | |||
Purchases | (123,100) | (153,612) | (267,263) |
Maturities/calls and principal repayments | 40,098 | 43,646 | 46,246 |
Sales | 55,428 | 169,146 | 124,823 |
Net increase in loans | (70,310) | (100,015) | (56,829) |
Proceeds from sale of Visa Class B restricted shares | 427 | ||
Proceeds from sale of real estate owned | 738 | 1,528 | 2,173 |
Proceeds from sale of fixed assets | 64 | ||
Purchase of fixed assets | (3,697) | (729) | (357) |
Purchase of Small Business Investment Company Holdings, at cost | (348) | (1,836) | (553) |
Purchase of other investments, at cost | (78) | (425) | (5,873) |
Redemptions of other investments, at cost | 425 | 3,478 | |
Net cash received (paid) in business combination | 143,927 | (5,913) | |
Purchase of bank owned life insurance | (10,000) | ||
Net cash provided by (used in) investing activities | (100,844) | 105,172 | (173,546) |
Cash flows from financing activities: | |||
Net increase in deposits | 60,047 | 12,501 | 24,973 |
Net increase in escrow deposits | (39) | 234 | (26) |
Proceeds from FHLB advances | 371,000 | 979,501 | 795,600 |
Repayment of FHLB advances | (381,000) | (1,054,501) | (659,625) |
Net increase in other borrowings | 677 | 5,897 | 527 |
Cash received (paid for shares surrendered) upon exercise of stock options | 116 | (6) | |
Cash paid for shares surrendered upon vesting of restricted stock | (147) | (149) | (87) |
Repurchase of common stock | (301) | (1,835) | |
Net cash provided by financing activities | 50,654 | (56,824) | 159,527 |
Increase (decrease) in cash and cash equivalents | (40,348) | 66,173 | 2,644 |
Cash and cash equivalents, beginning of period | 109,467 | 43,294 | 40,650 |
Cash and cash equivalents, end of period | 69,119 | 109,467 | 43,294 |
Cash paid during the year for: | |||
Interest on deposits and other borrowings | 13,522 | 7,407 | 6,021 |
Income taxes | 4,070 | 208 | 150 |
Noncash investing and financing activities: | |||
Real estate acquired in satisfaction of mortgage loans | 1,761 | 958 | 748 |
Loans originated for disposition of real estate owned | 1,004 | 1,001 | 208 |
Purchased loans and investments to be settled | (2,020) | 2,020 | 532 |
Transfer held to maturity investment securities to available for sale investment securities | 30,368 | ||
Transfer of Rabbi Trust investments to Company stock | 100 | ||
Reclassification for adoption of Accounting Standards Update | 617 | ||
Acquisitions | |||
Assets acquired | 193,191 | 110,010 | |
Liabilities assumed | 325,138 | 97,878 | |
Net assets/(liabilities) | (131,947) | 12,132 | |
Common stock issued in acquisitions | $ 9,872 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | NOTE 1. ORGANIZATION AND BASIS OF PRESENTATION Entegra Financial Corp. (“we,” “us,” “our,” or 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 a 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. (“Entegra Services”), which holds investment securities. The consolidated financials are presented in these financial statements. The Bank operates as a community-focused retail bank, originating primarily real estate-based mortgage, consumer and commercial loans and accepting deposits from consumers and small businesses. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting and reporting policies of the Company conform, in all material respects, to U.S. generally accepted accounting principles, or GAAP, and to general practices within the banking industry. The following summarizes the more significant of these policies and practices. Estimates Material estimates that are particularly susceptible to significant change, in the near term, relate to the determination of the allowance for loan losses, the valuation of acquired loans, separately identifiable intangible assets associated with mergers and acquisitions, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, and the valuation of deferred tax assets. Principles of Consolidation Reclassification Business Combinations 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. In addition, acquisition-related costs and restructuring costs are recognized as period expenses as incurred. Cash and Cash Equivalents Equity Securities Investment Securities Held-to-maturity (“HTM”) securities represent those securities that we have the positive intent and ability to hold to maturity and are carried at amortized cost. Realized gains and losses on the sale of securities and other-than-temporary impairment (“OTTI”) charges are recorded as a component of noninterest income in the Consolidated Statements of Operations. Realized gains and losses on the sale of securities are determined using the specific-identification method. Bond premiums are amortized to the call date and bond discounts are accreted to the maturity date, both on a level yield basis. We perform a quarterly review of our securities to identify those that may indicate OTTI. Our policy for OTTI within the debt securities portfolio is based upon a number of factors, including, but not limited to, the length of time and extent to which the estimated fair value has been less than cost, the financial condition of the underlying issuer and the ability of the issuer to meet contractual obligations. Other factors include the likelihood of the security’s ability to recover any decline in its estimated fair value and whether management intends to sell the security, or if it is more likely than not that management will be required to sell the investment security prior to the security’s recovery. In the third quarter of 2016, the Company transferred its HTM investment portfolio to AFS in order to provide more flexibility managing its investment portfolio. As a result, the Company was prohibited from classifying any investment securities as HTM for two years from the date of the transfer. Loans Held for Sale Fair Value Measurements and Disclosures Small Business Administration (“SBA”) loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value. When a loan is placed in the held-for-sale category, we stop amortizing the related deferred fees and costs. The remaining unamortized fees and costs are recognized as part of the carrying amount of the loan at the time it is sold. We generally sell the guaranteed portion of SBA loans in the secondary market and retain the unguaranteed portion in our portfolio. Upon sale of the guaranteed portion of an SBA loan, we recognize a portion of the gain on sale into income and defer a portion of the gain related to the relative fair value of the unguaranteed loan balance we retain. The deferred gain is amortized into income over the remaining life of the loan. Gains and losses on sales of loans held for sale are included in the Consolidated Statements of Operations in Mortgage Banking income for residential loans and Gains on sale of SBA loans for SBA loans. Net unrealized losses are recognized by charges to Mortgage Banking income. Loans Receivable Generally, consumer loans are charged down to their estimated collateral value after reaching 90 days past due. The number of days past due is determined by the amount of time when the payment was due based on contractual terms. Commercial loans are charged off as management becomes aware of facts and circumstances that raise doubt as to the collectability of all or a portion of the principal and when we believe a confirmed loss exists. The Company originates SBA loans and sells the guaranteed portion into the secondary market. When the Company retains the right to service a sold SBA loan, the previous carrying amount is allocated between the guaranteed portion of the loan sold, the unguaranteed portion of the loan retained and the retained SBA servicing right based on their relative fair values on the date of transfer. Nonaccrual Loans – For loans modified in a troubled debt restructuring, the loan is generally placed on non-accrual until there is a period of satisfactory payment performance by the borrower (either immediately before or after the restructuring), generally defined as six months, and the ultimate collectability of all amounts contractually due is not in doubt. Troubled Debt Restructurings (“TDR”) All TDRs are considered to be impaired loans and will be reported as an impaired loan for the remaining life of the loan, unless the restructuring agreement specifies an interest rate equal to or greater than the rate that would be accepted at the time of the restructuring for a new loan with comparable risk and it is fully expected that the original principal and interest will be collected according to the restructured agreement. We may also remove a loan from TDR and impaired status if the TDR is subsequently restructured and at the time of the subsequent restructuring the borrower is not experiencing financial difficulties and, under the terms of the subsequent restructuring agreement, no concession has been granted to the borrower. Allowance for Loan Losses (“ALL”) A loan is considered impaired when it is probable that we will be unable to collect all principal and interest payments due according to the original contractual terms of the loan agreement. We individually evaluate all loans classified as substandard or nonaccrual greater than $350,000 for impairment. If the impaired loan is considered collateral dependent, a charge-off is taken based upon the appraised value of the property (less an estimate of selling costs if foreclosure is anticipated). If the impaired loan is not collateral dependent, a specific reserve is established based upon an estimate of the future discounted cash flows after consideration of modifications and the likelihood of future default and prepayment. The allowance for non-impaired loans consists of a base historical loss reserve and a qualitative reserve. The loss rates for the base loss reserve are segmented into 18 loan categories and contain loss rates ranging from approximately 0.5% to 0.65%. The qualitative reserve adjusts the average loss rates utilized in the base loss reserve for trends in the following internal and external factors: Non-accrual and classified loans; Collateral values; Loan concentrations and loan growth; and Economic conditions – including unemployment rates, housing prices and sales, and regional economic outlooks. Qualitative reserve adjustment factors are decreased for favorable trends and increased for unfavorable trends. These factors are subject to further adjustment as economic and other conditions change. Fixed Assets Real Estate Owned (“REO”) Subsequent to foreclosure, real estate owned is recorded at the lower of carrying amount or fair value less estimated costs to sell. Valuations are periodically performed by management, but not less than every eighteen months, and an additional allowance for losses is established by a charge to Net Cost of Operation of Real Estate Owned in the Consolidated Statements of Operations, if necessary. Other Investments, at cost FHLB stock is carried at cost and evaluated for impairment based on the ultimate recoverability of the par value. The Company has evaluated its FHLB stock and concluded that it is not impaired because the FHLB Atlanta is currently paying cash dividends and redeeming stock at par. The FHLB requires members to purchase and hold a specified level of stock based upon the members asset value, level of borrowings and participation in other programs offered. Stock in the FHLB is non-marketable and is redeemable at the discretion of the FHLB. Members do not purchase stock in the FHLB for the same reasons that traditional equity investors acquire stock in an investor-owned enterprise. Rather, members purchase stock to obtain access to the low-cost products and services offered by the FHLB. Unlike equity securities of traditional for-profit enterprises, the stock of the FHLB does not provide its holders with an opportunity for capital appreciation because, by regulation, FHLB stock can only be purchased, redeemed and transferred at par value. Both cash and stock dividends are reported as Other interest income in the Consolidated Statements of Operations. Bank Owned Life Insurance (“BOLI”) Loan Servicing Rights (“LSR”) Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal (generally 25 basis points for residential mortgage loans and 100 basis points for SBA loans) or a fixed amount per loan, and are recorded as income when earned. Changes in fair value of LSRs are netted against loan servicing fee income and reported as Servicing income, net in the Consolidated Statements of Operations. Goodwill and Other Intangible Assets Core deposit intangibles are amortized over the estimated useful lives of the deposit accounts acquired (generally seven years on a straight line basis). Derivative Financial Instruments and Hedging Activities – Interest Rate Lock Commitments and Forward Sale Contracts Our interest rate risk management strategy incorporates the use of derivative instruments to minimize fluctuations in net income that are caused by interest rate volatility. The goal is to manage interest rate sensitivity by modifying the repricing or maturity characteristics of certain balance sheet assets and liabilities so that net interest revenue is not, on a material basis, adversely affected by movements in interest rates. We view this strategy as a prudent management of interest rate risk, such that net income is not exposed to undue risk presented by changes in interest rates. In carrying out this part of its interest rate risk management strategy, we use interest rate derivative contracts; primarily interest rate swaps. Interest rate swaps generally involve the exchange of fixed- and variable-rate interest payments between two parties, based on a common notional principal amount and maturity date. We classify our derivative financial instruments as either (1) a hedge of an exposure to changes in the fair value of a recorded asset or liability (“fair value hedge”), (2) a hedge of an exposure to changes in the cash flows of a recognized asset, liability or forecasted transaction (“cash flow hedge”), or (3) derivatives not designated as accounting hedges. Changes in the fair value of derivatives classified as fair value hedges and derivatives not designated as hedges are recognized in current period earnings. Changes in the fair value of derivatives classified as cash flow hedges are recorded in Accumulated Other Comprehensive Income. Small Business Investment Company Holdings (“SBIC”) – Advertising Expense Income Taxes Deferred income tax assets and liabilities are determined using the asset and liability method and are reported net in the Consolidated Balance Sheets. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax basis of assets and liabilities and recognizes enacted changes in tax rate and laws. When deferred tax assets are recognized, they are subject to a valuation allowance based on management’s judgment as to whether realization is more likely than not. In determining the need for a valuation allowance, the Company considers the following sources of taxable income: Future reversals of existing taxable temporary differences; Future taxable income exclusive of reversing temporary differences and carry forwards; Taxable income in prior carryback years; and Tax planning strategies that would, if necessary, be implemented As a result of the analysis above, the Company concluded that a valuation allowance was not necessary as of December 31, 2018 and 2017. Accrued taxes represent the net estimated amount due to or from taxing jurisdictions and are reported in other assets or other liabilities, as appropriate, in the Consolidated Balance Sheets. We evaluate and assess the relative risks and appropriate tax treatment of transactions and filing positions after considering statutes, regulations, judicial precedent and other information and maintain tax accruals consistent with the evaluation of these relative risks and merits. Changes to the estimate of accrued taxes occur periodically due to changes in tax rates, interpretations of tax laws, the status of examinations being conducted by taxing authorities and changes to statutory, judicial and regulatory guidance. These changes, when they occur, can affect deferred taxes and accrued taxes, as well as the current period’s income tax expense and can be significant to our operating results. As a result of the Tax Cuts and Jobs Act of 2017, the Company realized deferred tax expense of $4.9 million upon the revaluation in December 2017 of its deferred assets and deferred liabilities at the newly enacted Federal tax rate of 21%. Tax positions are recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50 percent likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Interest and/or penalties related to income tax matters are recognized in income tax expense. Allowance for Unfunded Commitments – Junior Subordinated Notes – Stock-based Compensation - Compensation-Stock Compensation Tax benefits realized upon the vesting of restricted shares that exceed the expense previously recognized for reporting purposes are recorded through the income statement as income tax benefit. If the tax benefit upon vesting is less than the expense previously recorded, the shortfall is recorded through the income statement as income tax expense. Segments – Subsequent Events – Recently Issued Accounting Standards - 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. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. Fair Value of Assets and Liabilities In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. Principal versus Agent Considerations (Reporting Revenue Gross versus Net), Identifying Performance Obligations and Licensing, Narrow-Scope Improvements and Practical Expedients, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. Revenue Recognition In June 2016, the FASB issued amendments to ASU 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. In August 2016, the FASB issued ASU 2016-15 , Classification of Certain Cash Receipts and Cash Payments. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) Leases (Topic 842) – Targeted Improvements, Leases (Topic 842) - Narrow-Scope Improvements for Lessors Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
ACQUISITIONS | NOTE 3. ACQUISITIONS The Company has determined that the acquisitions described below constitute a business combination as defined in ASC Topic 805, Business Combinations Fair Value Measurements Chattahoochee Bank of Georgia On October 1, 2017, the Bank acquired Chattahoochee Bank of Georgia (“Chattahoochee”) in Gainesville, Georgia. In connection with the acquisition, the Bank acquired $189.2 million of assets and assumed $170.6 million of liabilities. Total consideration transferred was $25.4 million of cash and 395,666 shares of the Company’s common stock valued at $9.9 million. The fair value of consideration paid exceeded the fair value of the identifiable assets and liabilities acquired and resulted in the establishment of goodwill in the amount of $16.8 million which is deductible over 15 years for tax purposes. There were no loans purchased with evidence of credit impairment. The purchased assets and assumed liabilities were recorded at their acquisition date fair values and are summarized in the table below: As Recorded by Fair Value As Recorded by (Dollars in thousands) Chattahoochee Adjustments the Company Assets Cash and cash equivalents $ 22,625 $ — $ 22,625 Loans 159,540 (570 ) 158,970 Fixed assets 3,945 (408 ) 3,537 Accrued interest receivable 421 — 421 Core deposit intangible — 2,070 2,070 Deferred tax asset 751 (751 ) — Other assets 1,579 (8 ) 1,571 Total assets acquired $ 188,861 $ 333 $ 189,194 Liabilities Deposits $ 165,624 $ 472 $ 166,096 Accrued Interest payable 102 (14 ) 88 Other liabilities 4,463 (14 ) 4,449 Total liabilities assumed 170,189 444 170,633 Excess of assets acquired over liabilities assumed $ 18,672 $ (111 ) $ 18,561 Consideration transferred Cash $ 25,448 Common stock issued (395,666 shares) 9,872 Total fair value of consideration transferred 35,320 Goodwill $ 16,759 Stearns Bank, N.A. On February 24, 2017, the Bank completed its acquisition of two branches from Stearns Bank, N.A. (“Stearns”). In connection with the acquisition, the Bank acquired the bank facilities and certain other assets and assumed $154.2 million of deposits. 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 (10th) business day prior to the acquisition. The excess of net liabilities assumed over the cash received to settle the acquisition resulted in the establishment of $5.0 million of goodwill which is deductible over 15 years for tax purposes. The purchased assets and assumed liabilities were recorded at their acquisition date fair values and are summarized in the table below: (Dollars in thousands) As Recorded Fair Value As Recorded by 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 Total assets acquired 2,215 1,782 3,997 Liabilities 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
INVESTMENT SECURITIES | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | NOTE 4. INVESTMENT SECURITIES The following table presents the holdings of our equity securities as of December 31, 2018, and 2017: December 31, 2018 2017 (Dollars in thousands) Mutual funds $ 6,178 $ 6,095 Equity securities with a fair value of $5.6 million as of December 31, 2018 are held in a Rabbi Trust and seek to generate returns that will fund the cost of certain deferred compensation agreements. Equity securities with a fair value of $0.6 million as of December 31, 2018 are in a mutual fund that qualifies under the Community Reinvestment Act (“CRA”) as CRA activity. There were losses on equity securities of $0.3 million for the year ended December 31, 2018, and gains of $0.7 million and $0.3 million for the years ended December 31, 2017 and 2016, respectively. The CRA mutual fund was reclassified as an equity security on January 1, 2018. The Company’s HTM investment portfolio was transferred to 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 was prohibited from classifying any investment securities as HTM for two years from the date of the transfer. There are no securities classified as HTM at December 31, 2018. In 2008, the Company received 4,301 shares of Class B restricted common stock of Visa, Inc. (the “Visa Class B shares”) as part of Visa’s initial public offering. These shares are transferable only under limited circumstances until they can be converted into the publicly-traded Class A common shares. This conversion will not occur until the settlement of certain litigation for which Visa is indemnified by the holders of Visa’s Class B shares. Visa funded an escrow account from its initial public offering to settle these litigation claims. However, should this escrow account be insufficient to cover these litigation claims, Visa is entitled to fund additional amounts to the escrow account by reducing the conversion ratio of each restricted Visa Class B share to unrestricted Class A shares. Based on the transfer restriction and the uncertainty of the outcome of the Visa litigation, the 4,301 Visa Class B shares that the Company owned were carried at a zero cost basis. The Company sold the 4,301 Visa Class B shares to another financial institution in the second quarter of 2018 for proceeds of $0.4 million. On April 28, 2017, the Louisiana Office of Financial Institutions closed First NBC Bank and appointed the FDIC as receiver. The Bank owned $0.7 million par value of subordinated debt issued by the holding company of First NBC Bank with an unrealized loss of $0.1 million prior to the impairment. The Company concluded the investment to be other than temporarily impaired. As such, the financial information for the year ended December 31, 2017 includes OTTI of $0.7 million before tax. The Company sold approximately $45.0 million of tax exempt municipal securities in December 2017, realizing a net loss of $1.1 million, in response to the Tax Reform. One tax exempt municipal security that had been identified for sale did not execute until January 2018 resulting in OTTI of $0.1 million based on the established fair value. The amortized cost and estimated fair values of securities classified as AFS are summarized as follows: December 31, 2018 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. Treasury & Government Agencies $ 34,068 $ 74 $ (152 ) $ 33,990 Municipal Securities 115,860 209 (1,667 ) 114,402 Mortgage-backed Securities - Guaranteed 86,664 98 (1,578 ) 85,184 Collateralized Mortgage Obligation - Guaranteed 22,492 47 (650 ) 21,889 Collateralized Mortgage Obligation - Non Guaranteed 69,774 125 (728 ) 69,171 Collateralized Loan Obligations 15,534 1 (458 ) 15,077 Corporate bonds 19,936 232 (143 ) 20,025 $ 364,328 $ 786 $ (5,376 ) $ 359,738 December 31, 2017 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. Treasury & Government Agencies $ 20,529 $ 7 $ (13 ) $ 20,523 Municipal Securities 93,250 975 (366 ) 93,859 Mortgage-backed Securities - Guaranteed 129,314 112 (1,387 ) 128,039 Collateralized Mortgage Obligation - Guaranteed 10,559 — (257 ) 10,302 Collateralized Mortgage Obligation - Non Guaranteed 64,706 323 (336 ) 64,693 Collateralized Loan Obligations 5,555 6 (22 ) 5,539 Corporate bonds 18,925 409 (43 ) 19,291 Mutual funds 629 — (12 ) 617 $ 343,467 $ 1,832 $ (2,436 ) $ 342,863 Information pertaining to securities with gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: December 31, 2018 Less Than 12 Months More Than 12 Months Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (Dollars in thousands) Available-for-Sale: U.S. Treasury & Government Agencies $ 23,423 $ 152 $ — $ — $ 23,423 $ 152 Municipal Securities 33,028 421 56,153 1,246 89,181 1,667 Mortgage-backed Securities - Guaranteed 27,692 370 45,619 1,208 73,311 1,578 Collateralized Mortgage Obligations - Guaranteed 2,042 19 15,294 631 17,336 650 Collateralized Mortgage Obligations - Non Guaranteed 22,383 185 30,471 543 52,854 728 Collateralized loan obligations 11,618 404 1,449 54 13,067 458 Corporate bonds 2,492 45 3,345 98 5,837 143 $ 122,678 $ 1,596 $ 152,331 $ 3,780 $ 275,009 $ 5,376 December 31, 2017 Less Than 12 Months More Than 12 Months Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (Dollars in thousands) Available-for-Sale: U.S. Treasury & Government Agencies $ 9,943 $ 11 $ 998 $ 2 $ 10,941 $ 13 Municipal Securities 11,043 61 22,982 305 34,025 366 Mortgage-backed Securities - Guaranteed 51,185 447 47,637 940 98,822 1,387 Collateralized Mortgage Obligations - Guaranteed 4,139 57 6,163 200 10,302 257 Collateralized Mortgage Obligations - Non Guaranteed 25,862 225 10,654 111 36,516 336 Collateralized loan obligations 3,520 22 — — 3,520 22 Corporate bonds 1,304 9 1,044 34 2,348 43 Mutual funds — — 617 12 617 12 $ 106,996 $ 832 $ 90,095 $ 1,604 $ 197,091 $ 2,436 Information pertaining to the number of securities with unrealized losses is detailed in the table below. Management of the Company believes all unrealized losses as of December 31, 2018 and 2017 represent temporary impairment. The unrealized losses have resulted from temporary changes in the interest rate market and not as a result of credit deterioration. We do not intend to sell and it is not likely that we will be required to sell any of the securities referenced in the table below before recovery of their amortized cost. December 31, 2018 Less Than More Than Total U.S. Treasury & Government Agencies 14 — 14 Municipal Securities 31 52 83 Mortgage-backed Securities - Guaranteed 21 43 64 Collateralized Mortgage Obligations - Guaranteed 1 8 9 Collateralized Mortgage Obligations - Non Guaranteed 12 22 34 Collateralized Loan Obligations 6 1 7 Corporate bonds 3 4 7 88 130 218 December 31, 2017 Less Than More Than Total U.S. Treasury & Government Agencies 6 1 7 Municipal Securities 11 22 33 Mortgage-backed Securities - Guaranteed 42 34 76 Collateralized Mortgage Obligations - Guaranteed 2 3 5 Collateralized Mortgage Obligations - Non Guaranteed 16 8 24 Collateralized Loan Obligations 2 — 2 Corporate bonds 2 1 3 Mutual funds — 1 1 81 70 151 The Company received proceeds from sales of securities classified as AFS and corresponding gross realized gains and losses as follows: For the Years Ended December 31, 2018 2017 2016 (Dollars in thousands) AFS Gross proceeds $ 55,001 $ 169,146 $ 124,823 Gross realized gains 77 558 1,261 Gross realized losses 1,047 1,660 45 Visa Class B Restricted Shares Gross proceeds 427 — — Gross realized gains 427 — — Gross realized losses — — — Total Gross proceeds $ 55,428 $ 169,146 $ 124,823 Gross realized gains 504 558 1,261 Gross realized losses 1,047 1,660 45 The Company had securities pledged against deposits and borrowings of approximately $155.8 million and $143.3 million at December 31, 2018 and 2017, respectively. The amortized cost and estimated fair value of investments in debt securities at December 31, 2018, 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) Over 1 year through 5 years $ 6,544 $ 6,563 After 5 years through 10 years 28,661 28,581 Over 10 years 150,193 148,350 185,398 183,494 Mortgage-backed securities 178,930 176,244 Total $ 364,328 $ 359,738 |
LOANS RECEIVABLE
LOANS RECEIVABLE | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
LOANS RECEIVABLE | NOTE 5. LOANS RECEIVABLE Loans receivable balances are summarized as follows: December 31, 2018 2017 (Dollars in thousands) Real estate mortgage loans: One-to four-family residential $ 325,560 $ 304,107 Commercial real estate 498,106 453,725 Home equity loans and lines of credit 48,679 49,877 Residential construction 39,533 37,108 Other construction and land 104,645 101,447 Total real estate loans 1,016,523 946,264 Commercial and industrial 54,410 56,939 Consumer 6,842 5,700 Total commercial and consumer 61,252 62,639 Loans receivable, gross 1,077,775 1,008,903 Less: Net deferred loan fees (1,000 ) (1,431 ) Fair value discount (1,048 ) (2,012 ) Hedged loans basis adjustment (See Note 9) 245 — Unamortized premium 333 389 Unamortized discount (236 ) (710 ) Loans receivable, net of deferred fees $ 1,076,069 $ 1,005,139 The Bank had $256.1 million and $231.8 million of loans pledged as collateral to secure funding with FHLB at December 31, 2018 and 2017, respectively. The Bank also had $114.4 million and $108.3 million of loans pledged as collateral to secure funding with the FRB Discount Window at December 31, 2018 and 2017, respectively. Included in loans receivable and other borrowings at December 31, 2018 and 2017 are $4.3 million and $3.6 million in participated loans, respectively, that did not qualify for sale accounting. Interest expense on the other borrowings accrues at the same rate as the interest income recognized on the loans receivable, resulting in no effect to net income. The following table presents the activity related to the discount on individually purchased loans: For the Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Discount on purchased loans, beginning of period $ 710 $ 1,150 $ 1,366 Accretion (474 ) (440 ) (216 ) Discount on purchased loans, end of period $ 236 $ 710 $ 1,150 The following table presents the activity related to the fair value discount on loans from business combinations: For the Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Fair value discount, beginning of period $ 2,012 $ 857 $ 72 Additional discount from acquisitions — 2,479 960 Accretion (964 ) (1,324 ) (175 ) Discount on acquired loans, end of period $ 1,048 $ 2,012 $ 857 There were no purchase credit impaired loans as of December 31, 2018, or 2017. The aggregate principal amounts outstanding to executive officers and directors of the Company made in the ordinary course of business as of and for the years ended December 31 is detailed in the table below: December 31, 2018 2017 Beginning of year $ 8,114 $ 8,222 New loans 208 428 Repayments (950 ) (536 ) End of year $ 7,372 $ 8,114 |
ALLOWANCE FOR LOAN LOSSES
ALLOWANCE FOR LOAN LOSSES | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
ALLOWANCE FOR LOAN LOSSES | NOTE 6. ALLOWANCE FOR LOAN LOSSES The following tables present, by portfolio segment, the activity in the allowance for loan losses: Year Ended December 31, 2018 One-to four Commercial Home Equity Residential Other Commercial Consumer Total (Dollars in thousands) Beginning balance $ 4,018 $ 4,364 $ 616 $ 303 $ 1,025 $ 503 $ 58 $ 10,887 Provision (1 ) 674 184 148 219 177 (200 ) 1,201 Charge-offs (124 ) (75 ) (283 ) — (40 ) (84 ) (108 ) (714 ) Recoveries 16 167 43 1 46 12 326 611 Ending balance $ 3,909 $ 5,130 $ 560 $ 452 $ 1,250 $ 608 $ 76 $ 11,985 Year Ended December 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 1,181 503 201 118 318 (53 ) (371 ) 1,897 Charge-offs (93 ) (193 ) (268 ) — (289 ) (68 ) (60 ) (971 ) Recoveries 118 75 6 — 148 25 284 656 Ending balance $ 4,018 $ 4,364 $ 616 $ 303 $ 1,025 $ 503 $ 58 $ 10,887 Year Ended December 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 413 1,016 (486 ) (125 ) (122 ) (85 ) (337 ) 274 Charge-offs (133 ) (431 ) (158 ) — (560 ) (63 ) (201 ) (1,546 ) Recoveries 77 173 224 32 130 144 336 1,116 Ending balance $ 2,812 $ 3,979 $ 677 $ 185 $ 848 $ 599 $ 205 $ 9,305 The following tables present, by portfolio segment and reserving methodology, the allocation of the allowance for loan losses and the recorded investment in loans: December 31, 2018 One-to four Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) Allowance for loan losses Individually evaluated for impairment $ 79 $ 27 $ — $ — $ 54 $ 7 $ — $ 167 Collectively evaluated for impairment 3,830 5,103 560 452 1,196 601 76 11,818 $ 3,909 $ 5,130 $ 560 $ 452 $ 1,250 $ 608 $ 76 $ 11,985 Loans Receivable Individually evaluated for impairment $ 2,900 $ 6,019 $ 313 $ — $ 1,377 $ 276 $ — $ 10,885 Collectively evaluated for impairment 322,255 490,530 48,512 39,488 103,087 54,367 6,945 1,065,184 $ 325,155 $ 496,549 $ 48,825 $ 39,488 $ 104,464 $ 54,643 $ 6,945 $ 1,076,069 December 31, 2017 One-to four Commercial Home Equity Residential Other Commercial Consumer Total (Dollars in thousands) Allowance for loan losses Individually evaluated for impairment $ 185 $ 56 $ — $ — $ 66 $ 15 $ — $ 322 Collectively evaluated for impairment 3,833 4,308 616 303 959 488 58 10,565 $ 4,018 $ 4,364 $ 616 $ 303 $ 1,025 $ 503 $ 58 $ 10,887 Loans Receivable Individually evaluated for impairment $ 3,873 $ 5,714 $ 313 $ — $ 1,443 $ 291 $ — $ 11,634 Collectively evaluated for impairment 299,111 445,315 49,648 37,144 99,725 56,785 5,777 993,505 $ 302,984 $ 451,029 $ 49,961 $ 37,144 $ 101,168 $ 57,076 $ 5,777 $ 1,005,139 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. We do not risk grade consumer purposed loans within all categories for which the individual loan balance is less than $417,000. These loan types provide limited credit information subsequent to origination and therefore may not be properly risk graded within our standard risk grading system. All of our consumer purposed loans are now considered ungraded and will be analyzed on a performing versus non-performing basis. The non-performing ungraded loans will be deemed substandard when determining our classified assets. Consumer purposed loans may include residential loans, home equity loans and lines of credit, residential lot loans, and other consumer loans. This change in risk grading methodology did not have any material impact on our allowance for loan losses calculation. Description of Loan Portfolio Segment and Class Risks Each of our loan 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 mortgage 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 loans by loan grade: December 31, 2018 Loan Grade One-to-Four Commercial Home Equity Residential Other Commercial Consumer Total (Dollars in thousands) 1 $ — $ 7,569 $ — $ — $ — $ 1,264 $ 7 $ 8,840 2 — 7,860 — — — 20 — 7,880 3 31,623 87,756 5,212 9,365 12,111 15,685 264 162,016 4 121,688 280,630 4,014 18,358 61,646 22,374 245 508,955 5 24,738 88,698 615 3,404 17,630 12,307 5 147,397 6 321 7,867 — 1 1,303 495 — 9,987 7 674 5,725 — — 376 487 — 7,262 $ 179,044 $ 486,105 $ 9,841 $ 31,128 $ 93,066 $ 52,632 $ 521 $ 852,337 Ungraded Loan Exposure: Performing $ 145,470 $ 10,420 $ 38,806 $ 8,360 $ 11,334 $ 2,011 $ 6,424 $ 222,825 Nonperforming 641 24 178 — 64 — — 907 Subtotal $ 146,111 $ 10,444 $ 38,984 $ 8,360 $ 11,398 $ 2,011 $ 6,424 $ 223,732 Total $ 325,155 $ 496,549 $ 48,825 $ 39,488 $ 104,464 $ 54,643 $ 6,945 $ 1,076,069 December 31, 2017 Loan Grade One-to-Four Commercial Home Equity Residential Other Commercial Consumer Total (Dollars in thousands) 1 $ — $ 9,086 $ — $ — $ — $ 1,665 $ 11 $ 10,762 2 1,164 12,360 — — 904 1,272 — 15,700 3 34,593 78,485 5,312 7,262 9,207 15,117 377 150,353 4 99,816 249,103 3,901 16,294 57,065 25,137 523 451,839 5 22,639 87,745 943 3,111 18,806 13,064 8 146,316 6 1,741 8,623 — — 2,055 306 — 12,725 7 2,112 5,371 — — 425 474 — 8,382 $ 162,065 $ 450,773 $ 10,156 $ 26,667 $ 88,462 $ 57,035 $ 919 $ 796,077 Ungraded Loan Exposure: Performing $ 140,013 $ 256 $ 39,685 $ 10,477 $ 12,623 $ 41 $ 4,846 $ 207,941 Nonperforming 906 — 120 — 83 — 12 1,121 Subtotal $ 140,919 $ 256 $ 39,805 $ 10,477 $ 12,706 $ 41 $ 4,858 $ 209,062 Total $ 302,984 $ 451,029 $ 49,961 $ 37,144 $ 101,168 $ 57,076 $ 5,777 $ 1,005,139 Delinquency Analysis of Loans by Class The following tables include an aging analysis of the recorded investment of past-due financing receivables by class. The Company does not accrue interest on loans greater than 90 days past due. December 31, 2018 30-59 Days 60-89 Days 90 Days Total Current Total (Dollars in thousands) One-to-four family residential $ 3,562 $ 1,317 $ 84 $ 4,963 $ 320,192 $ 325,155 Commercial real estate 2,615 — 1,782 4,397 492,152 496,549 Home equity and lines of credit 400 457 73 930 47,895 48,825 Residential construction — — 1 1 39,487 39,488 Other construction and land 613 32 64 709 103,755 104,464 Commercial 307 25 121 453 54,190 54,643 Consumer 27 4 — 31 6,914 6,945 Total $ 7,524 $ 1,835 $ 2,125 $ 11,484 $ 1,064,585 $ 1,076,069 December 31, 2017 30-59 Days 60-89 Days 90 Days Total Current Total (Dollars in thousands) One-to-four family residential $ 3,941 $ 591 $ 562 $ 5,094 $ 297,890 $ 302,984 Commercial real estate 2,093 308 683 3,084 447,945 451,029 Home equity and lines of credit 308 27 120 455 49,506 49,961 Residential construction 501 — — 501 36,643 37,144 Other construction and land 1,711 21 93 1,825 99,343 101,168 Commercial 488 1 95 584 56,492 57,076 Consumer 27 25 10 62 5,715 5,777 Total $ 9,069 $ 973 $ 1,563 $ 11,605 $ 993,534 $ 1,005,139 Impaired Loans The following table presents investments in loans considered to be impaired and related information on those impaired loans: December 31, 2018 December 31, 2017 Recorded Unpaid Specific Recorded Unpaid Specific (Dollars in thousands) Loans without a valuation allowance One-to four-family residential $ 845 $ 923 $ — $ 2,266 $ 2,376 $ — Commercial real estate 3,835 6,207 — 4,050 6,119 — Home equity and lines of credit 283 283 — 313 428 — Other construction and land 365 366 — 571 678 — $ 5,328 $ 7,779 $ — $ 7,200 $ 9,601 $ — Loans with a valuation allowance One-to four-family residential $ 2,055 $ 2,055 $ 79 $ 1,607 $ 1,607 $ 185 Commercial real estate 2,184 2,184 27 1,664 1,664 56 Home equity and lines of credit 30 30 — — — — Other construction and land 1,012 1,012 54 872 872 66 Commercial 276 276 7 291 291 15 $ 5,557 $ 5,557 $ 167 $ 4,434 $ 4,434 $ 322 Total One-to four-family residential $ 2,900 $ 2,978 $ 79 $ 3,873 $ 3,983 $ 185 Commercial real estate 6,019 8,391 27 5,714 7,783 56 Home equity and lines of credit 313 313 — 313 428 — Other construction and land 1,377 1,378 54 1,443 1,550 66 Commercial 276 276 7 291 291 15 $ 10,885 $ 13,336 $ 167 $ 11,634 $ 14,035 $ 322 The following table presents average impaired loans and interest income recognized on those impaired loans, by class segment, for the periods indicated: For the Year Ended December 31, 2018 2017 2016 Average Interest Average Interest Average Interest (Dollars in thousands) Loans without a valuation allowance One-to-four family residential $ 940 $ 71 $ 2,415 $ 116 $ 2,758 $ 117 Commercial real estate 6,250 136 6,188 128 7,834 116 Home equity and lines of credit 283 18 428 55 328 10 Other construction and land 373 22 686 20 923 27 $ 7,846 $ 247 $ 9,717 $ 319 $ 11,843 $ 270 Loans with a valuation allowance One-to-four family residential $ 2,145 $ 72 $ 1,642 $ 75 $ 1,162 $ 48 Commercial real estate 2,252 94 1,685 87 2,098 82 Home equity and lines of credit 145 — — — 100 4 Other construction and land 1,169 47 908 38 1,027 37 Commercial 283 23 299 21 312 19 $ 5,994 $ 236 $ 4,534 $ 221 $ 4,699 $ 190 Total One-to-four family residential $ 3,085 $ 143 $ 4,057 $ 191 $ 3,920 $ 165 Commercial real estate 8,502 230 7,873 215 9,932 198 Home equity and lines of credit 428 18 428 55 428 14 Other construction and land 1,542 69 1,594 58 1,950 64 Commercial 283 23 299 21 312 19 $ 13,840 $ 483 $ 14,251 $ 540 $ 16,542 $ 460 Nonperforming Loans The following table summarizes the balances of nonperforming loans. Certain loans classified as Troubled Debt Restructurings (“TDRs”) and impaired loans may be on non-accrual status even though they are not contractually delinquent. December 31, 2018 2017 (Dollars in thousands) One-to-four family residential $ 1,037 $ 1,421 Commercial real estate 3,266 2,666 Home equity loans and lines of credit 178 120 Other construction and land 256 464 Commercial 120 95 Consumer — 12 Non-performing loans $ 4,857 $ 4,778 Troubled Debt Restructurings (TDRs) The following tables summarize TDRs as of the dates indicated: December 31, 2018 Performing Nonperforming Total TDRs TDRs TDRs (Dollars in thousands) One-to-four family residential $ 2,154 $ 361 $ 2,515 Commercial real estate 3,690 1,462 5,152 Home equity and lines of credit 283 30 313 Other construction and land 1,185 192 1,377 Commercial 276 — 276 $ 7,588 $ 2,045 $ 9,633 December 31, 2017 Performing Nonperforming Total TDRs TDRs TDRs (Dollars in thousands) One-to-four family residential $ 3,452 $ — $ 3,452 Commercial real estate 3,805 1,438 5,243 Home equity and lines of credit 313 — 313 Other construction and land 1,091 370 1,461 Commercial 291 — 291 $ 8,952 $ 1,808 $ 10,760 Loan modifications that were deemed TDRs at the time of the modification during the period presented are summarized in the table below: For the Year Ended (Dollars in thousands) Number of Recorded Extended payment terms Commercial real estate 1 $ 206 1 $ 206 For the Year Ended December 31, 2017 (Dollars in thousands) Number of Pre-modification Post-modification Forgiveness of principal: Other construction and land 1 $ 242 $ 166 1 $ 242 $ 166 There were no TDRs that defaulted during the years ending December 31, 2018 or December 31, 2017 and which were modified as TDRs within the previous 12 months. |
CONCENTRATIONS OF CREDIT RISK
CONCENTRATIONS OF CREDIT RISK | 12 Months Ended |
Dec. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS OF CREDIT RISK | NOTE 7. CONCENTRATIONS OF CREDIT RISK A substantial portion of the Company’s loan portfolio is represented by loans in western North Carolina, northern Georgia, and Upstate South Carolina. The capacity and willingness of the Company’s debtors to honor their contractual obligations is dependent upon general economic conditions and the health of the real estate market within its general lending area. The majority of the Company’s loans, commitments, and lines of credit have been granted to customers in its primary market area and substantially all of these instruments are collateralized by real estate or other assets. The Company, as a matter of policy, does not extend credit to any single borrower or group of related borrowers in excess of its legal lending limit, which was $24.6 million at December 31, 2018 and $22.1 million at December 31, 2017. The Company’s loans were concentrated in the following categories: December 31, 2018 2017 Real estate loans: One- to four-family residential 30.2 % 30.1 % Commercial 46.2 45.0 Home equity loans and lines of credit 4.5 4.9 Residential construction 3.7 3.7 Other construction and land 9.7 10.1 Commercial 5.1 5.6 Consumer 0.6 0.6 Total loans, gross 100 % 100 % |
FIXED ASSETS
FIXED ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
FIXED ASSETS | NOTE 8. FIXED ASSETS Fixed assets are summarized as follows: December 31, 2018 2017 (Dollars in thousands) Land and improvements $ 10,554 $ 10,054 Buildings 24,947 22,452 Furniture, fixtures, and equipment 9,386 8,767 Construction in process 93 52 Total fixed assets $ 44,980 $ 41,325 Less accumulated depreciation (18,595 ) (17,212 ) Fixed assets, net $ 26,385 $ 24,113 Depreciation and leasehold amortization expense was $1.4 million for the years ended December 31, 2018, and 2017, and $1.2 million for the year ended December 31, 2016. The Bank has entered into operating leases in connection with its retail branch operations. These leases expire at various dates through May 2022. Total rental expense was approximately $0.2 million, $0.2 million, and $0.1 million for the years ended December 31, 2018, 2017, and 2016, respectively. Following is a schedule of approximate annual future minimum lease payments under operating leases that have initial or remaining lease terms in excess of one year (in thousands): 2019 $ 155 2020 69 2021 53 2022 18 Total minimum lease commitments $ 295 |
REAL ESTATE OWNED
REAL ESTATE OWNED | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
REAL ESTATE OWNED | NOTE 9. REO The following tables summarizes real estate owned and changes in the valuation allowance for real estate owned as of and for the periods indicated: As of December 31, (Dollars in thousands) 2018 2017 Real estate owned, gross $ 3,246 $ 3,585 Less: Valuation allowance 753 1,017 Real estate owned, net $ 2,493 $ 2,568 Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Valuation allowance, beginning $ 1,017 $ 1,424 $ 1,372 Provision charged to expense 98 292 655 Reduction due to disposal (362 ) (699 ) (603 ) Valuation allowance, ending $ 753 $ 1,017 $ 1,424 As of December 31, 2018, the Company had no loans secured by residential real estate properties for which formal foreclosure proceedings were in process. As of December 31, 2018, the Company had $0.2 million of residential real estate properties included in real estate owned. |
BANK OWNED LIFE INSURANCE (BOLI
BANK OWNED LIFE INSURANCE (BOLI) | 12 Months Ended |
Dec. 31, 2018 | |
Investments, All Other Investments [Abstract] | |
BANK OWNED LIFE INSURANCE (BOLI) | NOTE 10. BANK OWNED LIFE INSURANCE (“BOLI”) The following table summarizes the composition of our BOLI: December 31, 2018 2017 (Dollars in thousands) Separate account $ 2,535 $ 2,504 General account 19,004 18,491 Hybrid 11,347 11,155 Total $ 32,886 $ 32,150 The assets of the separate account are invested in the PIMCO Mortgage-backed securities account which is composed primarily of U.S. Treasury and U.S. government agency mortgage-backed securities with a rating of Aaa and repurchase agreements with a rating of P-1. The assets of the general account are invested in six different insurance carriers with ratings ranging from A+ to A++. The assets of the hybrid account are invested in two different insurance carriers with ratings ranging from A+ to A++. Certain BOLI holdings were reallocated during 2017 from the separate account to the higher yielding hybrid account as allowed by the individual policies. |
LOAN SERVICING
LOAN SERVICING | 12 Months Ended |
Dec. 31, 2018 | |
Transfers and Servicing [Abstract] | |
LOAN SERVICING | NOTE 11. LOAN SERVICING Loans serviced for others are not included in the accompanying consolidated balance sheets with the exception of $4.3 million, $3.6 million, and $2.7 million as of December 31, 2018, 2017, and 2016, respectively, for which loan sale accounting did not apply. The unpaid principal balances of mortgage and SBA loans serviced for others is detailed below. December 31, 2018 2017 2016 (Dollars in thousands) $ 284,091 $ 276,782 $ 264,264 The following summarizes the activity in the balance of loan servicing rights: December 31, 2018 2017 2016 (Dollars in thousands) Loan servicing rights, beginning of period $ 2,756 $ 2,603 $ 2,344 Capitalization from loans sold 433 618 604 Fair value adjustment (352 ) (465 ) (345 ) Loan servicing rights, end of period $ 2,837 $ 2,756 $ 2,603 The Company held custodial escrow deposits of $0.2 million and $0.5 million for loan servicing accounts at December 31, 2018 and 2017, respectively. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | NOTE 12. GOODWILL AND OTHER INTANGIBLE ASSETS The Company had $23.9 million of goodwill as of both December 31, 2018 and 2017. The following is a summary of changes in the carrying amounts of goodwill: Years Ended December 31, 2018 2017 Dollars in thousands Balance at beginning of period $ 23,903 $ 2,065 Additions: Prior acquisitions measurement period adjustments — 63 Goodwill from current year acquisitions — 21,775 Balance at end of period $ 23,903 $ 23,903 Management performed a Step 1 assessment comparing the fair value of the Company to its carrying amount and concluded there was no goodwill impairment at December 31, 2018. The Company had $3.6 million and $4.3 million of core deposit intangibles as of December 31, 2018 and 2017, respectively. The following is a summary of gross carrying amounts and accumulated amortization of core deposit intangibles: Years Ended December 31, 2018 2017 Dollars in thousands Gross balance at beginning of period $ 4,840 $ 1,120 Additions from acquisitions — 3,720 Gross balance at end of period 4,840 4,840 Less accumulated amortization (1,263 ) (571 ) Core deposit intangible, net $ 3,577 $ 4,269 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 is $0.7 million for each of the next four years, $0.6 million in the fifth year, and $0.3 million in the final year. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | NOTE 13. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES Interest Rate Swaps Risk Management Objective of Interest Rate Swaps The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity and credit risk, primarily by managing the amount, sources and duration of certain balance sheet assets and liabilities. In the normal course of business, the Company also uses derivative financial instruments to add stability to interest income or expense and to manage its exposure to movements in interest rates. The Company does not use derivatives for trading or speculative purposes and only enters into transactions that have a qualifying hedging relationship. The Company’s hedging strategies involving interest rate derivatives are classified as either “Fair Value Hedges” or “Cash Flow Hedges,” depending upon the rate characteristic of the hedged item. Fair Value Hedge : Cash Flow Hedge : Credit and Collateral Risks for Interest Rate Swaps The Company manages credit exposure on interest rate swap transactions by entering into a bilateral credit support agreement with each counterparty. The credit support agreements allow for collateralization of exposures beyond specified minimum threshold amounts. The Company’s agreements with its interest rate swap counterparties contain a provision where if either party defaults on any of its indebtedness, then it could also be declared in default on its derivative obligations. The agreements with derivative counterparties also include provisions that if not met, could result in the Company being declared in default. If the Company were to be declared in default, the counterparty could terminate the derivative positions and the Company and the counterparty would be required to settle their obligations under the agreements. At December 31, 2018, the Company had one derivative in a net liability position of $0.2 million under these agreements. Mortgage Derivatives Risk Management Objective of Mortgage Lending Activities The Company also maintains a risk management program to manage interest rate risk and pricing risk associated with its mortgage lending activities. The risk management program includes the use of forward contracts and other derivatives that are recorded in the financial statements at fair value and are used to offset changes in value of the mortgage inventory due to changes in market interest rates. As a normal part of our operations, we enter into derivative contracts to economically hedge risks associated with overall price risk related to interest rate lock commitments (“IRLCs”) and mortgage loans held-for-sale for which the fair value option has been elected. Fair value changes occur as a result of interest rate movements as well as changes in the value of the associated servicing. Derivative instruments used include forward sales commitments and IRLCs. Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of mortgage loans to third party investors are considered derivatives. It is the Company’s practice to enter into forward commitments for the future delivery of mortgage loans in order to economically hedge the effect of changes in interest rates resulting from IRLCs. Credit and Collateral Risks for Mortgage Lending Activities The Company’s underlying risks are primarily related to interest rates and forward sales commitments entered into as part of its mortgage banking activities. Forward sales commitments are contracts for the delayed delivery or net settlement of an underlying instrument, such as a mortgage loan, in which the seller agrees to deliver on a specified future date, either a specified instrument at a specified price or yield or the net cash equivalent of an underlying instrument. These hedges are used to preserve the Company’s position relative to future sales of mortgage loans to third parties in an effort to minimize the volatility of the expected gain on sale from changes in interest rate and the associated pricing changes. 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 sheets (in thousands). Derivative Assets (1) Derivative Liabilities (1) December 31, December 31, 2018 2017 2018 2017 Derivatives designated as hedging instruments: Interest rate swaps $ 354 $ 561 $ 462 $ — Total $ 354 $ 561 $ 462 $ — Derivatives not designated as hedging instruments: Mortgage derivatives $ 34 $ 73 $ 22 $ — Total $ 34 $ 73 $ 22 $ — (1) All derivative assets are located in “Other assets” on the consolidated balance sheets and all derivative liabilities are located in “Other liabilities” on the consolidated balance sheets. The table below presents the effect of fair value and cash flow hedge accounting on the consolidated statements of income: Years Ended December 31, 2018 2017 2016 (dollars in thousands) Interest Interest Interest Interest Interest Interest Total amounts of income and expense line items presented in the consolidated statements of income $ 62,614 $ 13,289 $ 50,529 $ 7,684 $ 40,520 $ 6,032 Amounts related to fair value hedging relationships Interest rate swaps: Hedged items 245 — — — — — Derivatives designated as hedging instruments (313 ) — — — — — Amounts related to cash flow hedging relationships Interest rate swaps: Amount reclassified from accumulated other comprehensive loss into income — (431 ) — (14 ) — 32 Derivatives Designated as Hedging Instruments Fair Value Hedges The Company uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps, designated as fair value hedges, involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed payments over the life of the agreements without the exchange of the underlying notional amount. The gain or loss on the derivative as well as the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized in earnings. The Company entered into a pay-fixed/receive-variable interest rate swap in April 2018 with a notional amount of $25.0 million which was designated as a fair value hedge associated with the Company’s fixed rate loan program. As of December 31, 2018, the following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges: (dollars in thousands) Carrying amount of the Cumulative amount of fair Line item in the balance sheet in which the hedged item is included December 31, December 31, Loans receivable (1) $ 100,519 $ 245 (1) These amounts include the amortized cost basis of the closed portfolio used to designate the hedging relationship in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. At December 31, 2018, the amortized cost basis of the closed portfolio used in the the hedging relationship was $100.5 million, the cumulative basis adjustment associated with the hedging relationship was $0.2 million, and the amount of the designated hedged item was $25.0 million. The Company had no interest rate swaps that were designated as fair value hedges as of December 31, 2017. Cash Flow Hedges Interest rate swap contracts, designated as cash flow hedges, 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 Company entered into a new pay-fixed/receive-variable interest rate swap in June 2018 associated with the Company’s junior subordinated debt. The forward starting interest rate swap begins exchanging cash flows in 2020 when the current interest rate swap agreement expires. The structures of the swap agreements designated as cash flow hedges are 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 Junior Subordinated Debt Cash Flow Hedge $ 14,000 Pay 3.02%/Receive 3 month LIBOR 3 yrs The table below presents the effect of the Company’s derivatives in cash flow hedging relationships for the periods presented (dollars in thousands): Years Ended December 31, Interest rate swaps Location 2018 2017 2016 Amounts recognized in AOCI on derivatives OCI $ 2 $ 99 $ 444 Amounts reclassified from AOCI into income Interest expense (431 ) (14 ) 32 Amounts recognized in consolidated statement of comprehensive income $ (429 ) $ 85 $ 476 Derivatives Not Designated as Hedging Instruments Mortgage Derivatives Mortgage derivative fair value assets and liabilities are described above. At December 31, 2018 and December 31, 2017, the Company had the following IRLCs and forward commitments for the future delivery of residential mortgage loans. As of December 31, (Dollars in thousands) 2018 2017 Mortgage derivatives Interest rate lock commitments $ 1,627 $ 5,705 Forward sales commitment 3,500 5,705 The table below presents the effect of the Company’s derivatives not designated as hedging instruments for the periods presented: Years Ended December 31, Interest rate products Location 2018 2017 2016 (Dollars in thousands) Amount of gain (loss) recognized in income on forward commitments Noninterest income $ (55 ) $ 9 $ 3 Amount of gain (loss) recognized in income on interest rate lock commitments Noninterest income (12 ) 4 11 Amount of gain (loss) recognized in income on derivatives not designated as hedging instruments $ (67 ) $ 13 $ 14 |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
DEPOSITS | NOTE 14. DEPOSITS The following table summarizes deposit balances and the related interest expense by type of deposit: As of and for the Year Ended December 31, 2018 2017 2016 (Dollars in thousands) Balance Interest Balance Interest Balance Interest Noninterest-bearing demand $ 184,404 $ — $ 179,457 $ — $ 139,136 $ — Interest-bearing demand 209,085 374 226,718 228 122,271 160 Money market 356,086 2,637 308,767 1,022 239,387 770 Savings 50,716 59 50,500 53 40,014 49 Time deposits 420,949 5,048 396,735 3,171 289,205 2,985 $ 1,221,240 $ 8,118 $ 1,162,177 $ 4,474 $ 830,013 $ 3,964 The following table indicates wholesale deposits included in the money market and time deposits amounts above: December 31, (Dollars in thousands) 2018 2017 Wholesale money market $ 5,030 $ 2,020 Wholesale time deposits 70,978 39,105 $ 76,008 $ 41,125 Contractual maturities of time deposit accounts are summarized as follows: (Dollars in thousands) December 31, 2019 $ 226,307 2020 54,539 2021 66,371 2022 22,047 2023 22,435 Thereafter 29,250 $ 420,949 The following table presents the activity related to the fair value premium on acquired time deposits: For the Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Time deposit premium, beginning of period $ 1,102 $ 420 $ 30 Additional premium for acquisitions — 1,534 648 Accretion (945 ) (852 ) (258 ) Time deposit premium, end of period $ 157 $ 1,102 $ 420 The Company had time deposit accounts in amounts of $250 thousand or more totaling $57.9 million and $55.8 million at December 31, 2018 and 2017, respectively. The Company had deposits from related parties of $1.9 million and $1.6 million at December 31, 2018 and 2017, respectively. |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
BORROWINGS | NOTE 15. BORROWINGS The Company has total credit availability with the FHLB of up to 30% of assets, subject to the availability of qualified collateral. As collateral for these borrowings, the Company pledges certain investment securities, its FHLB stock, and its entire loan portfolio of qualifying mortgages (as defined) under a blanket collateral agreement with the FHLB. At December 31, 2018, the Company had unused borrowing capacity with the FHLB of $46.4 million based on collateral pledged at that date. The Company has total additional credit availability with FHLB of $282.0 million as of December 31, 2018, if additional collateral was available and pledged. The following tables summarize the outstanding FHLB advances as of the dates indicated: December 31, 2018 December 31, 2017 Balance Type Rate Maturity Balance Type Rate Maturity (Dollars in thousands) (Dollars in thousands) $ 5,000 Fixed Rate 2.26 % 1/7/2019 $ 5,000 Fixed Rate 1.29 % 1/5/2018 25,000 Fixed Rate 2.33 % 2/7/2019 20,000 Fixed Rate 1.37 % 2/8/2018 20,000 Fixed Rate 2.49 % 2/8/2019 20,500 Adjustable rate 1.48 % 5/24/2018 5,000 Fixed Rate 2.34 % 4/3/2019 15,000 Adjustable rate 1.60 % 3/29/2018 20,000 Fixed Rate 2.54 % 4/5/2019 5,000 Fixed Rate 1.29 % 4/2/2018 1,000 Fixed Rate 1.62 % 5/13/2019 20,000 Fixed Rate 1.37 % 4/16/2018 25,000 Fixed Rate 2.67 % 5/28/2019 25,000 Fixed Rate 1.36 % 5/7/2018 2,000 Fixed Rate 1.53 % 6/12/2019 50,000 Fixed Rate 1.59 % 5/24/2018 5,000 Fixed Rate 2.54 % 7/2/2019 5,000 Fixed Rate 1.26 % 6/5/2018 25,000 Fixed Rate 2.82 % 8/26/2019 5,000 Fixed Rate 1.39 % 6/6/2018 10,000 Fixed Rate 2.68 % 9/30/2019 10,000 Fixed Rate 0.84 % 6/29/2018 10,500 Fixed Rate 2.79 % 11/26/2019 5,000 Fixed Rate 1.40 % 7/2/2018 10,000 Fixed Rate 2.12 % 12/30/2019 5,000 Fixed Rate 1.38 % 7/2/2018 5,000 Fixed Rate 2.12 % 12/30/2019 10,000 Fixed Rate 1.52 % 9/28/2018 5,000 Fixed Rate 2.67 % 1/2/2020 5,000 Fixed Rate 1.51 % 12/31/2018 15,000 Fixed Rate 2.88 % 3/30/2020 1,000 Fixed Rate 1.62 % 5/13/2019 10,000 Fixed Rate 2.89 % 5/26/2020 2,000 Fixed Rate 1.53 % 6/12/2019 10,000 Fixed Rate 2.68 % 6/29/2020 10,000 Fixed Rate 2.12 % 12/30/2019 5,000 Fixed Rate 2.72 % 12/31/2020 5,000 Fixed Rate 2.12 % 12/30/2019 $ 213,500 2.58 % $ 223,500 1.48 % The scheduled annual maturities of FHLB advances and respective weighted average rates are as follows: December 31, 2018 Year Balance Weighted (Dollars in thousands) 2019 168,500 2.52 % 2020 45,000 2.80 % $ 213,500 2.58 % The Company also maintained approximately $48.3 million in borrowing capacity with the FRB discount window as of both December 31, 2018 and 2017. The Company had no FRB discount window borrowings outstanding at December 31, 2018 or 2017. The rate charged on discount window borrowings is currently the Fed Funds target rate plus 0.50% (i.e., 3.00% as of December 31, 2018). On September 15, 2017, the Company established a $15.0 million revolving credit loan facility with NexBank SSB. The loan facility, which is secured by Entegra Bank stock, bears interest at LIBOR plus 350 basis points and is intended to be used for general corporate purposes. Unless extended, the loan will mature on September 15, 2020. The Company had drawn $5.0 million on the revolving credit loan facility as of both December 31, 2018 and 2017. The Company also had other borrowings of $4.3 million and $3.6 million at December 31, 2018, and 2017, respectively, which is comprised of 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. |
JUNIOR SUBORDINATED DEBT
JUNIOR SUBORDINATED DEBT | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
JUNIOR SUBORDINATED DEBT | NOTE 16. JUNIOR SUBORDINATED DEBT The Company issued $14.4 million of junior subordinated notes to its wholly owned subsidiary, Macon Capital Trust I, to fully and unconditionally guarantee the trust preferred securities issued by the Trust. These notes qualify as Tier I capital for the Company. The notes accrue interest quarterly at 2.80% above the 90-day LIBOR, adjusted quarterly. To add stability to net interest revenue and manage our exposure to interest rate movement, we entered into an interest rate swap in June 2016. The 2016 swap contract involves the payment of fixed-rate amounts to a counterparty in exchange for our receipt of variable-rate payments over the four year life of the contract. The effective interest rate was 3.76% at December 31, 2018 and 2017. The notes mature on March 30, 2034. The Company entered into a new pay-fixed/receive-variable interest rate swap in June 2018 associated with the Company’s junior subordinated debt. The forward starting interest rate swap begins exchanging cash flows in 2020 when the current interest rate swap agreement expires. The Company has the right to redeem the notes, in whole or in part, on or after March 30, 2009 at a price equal to 100% of the principal amount plus accrued and unpaid interest. In addition, the Company may redeem the notes in whole (but not in part) upon the occurrence of a capital disqualification event, an investment company event, or a tax event at a specified redemption price as defined in the indenture. The Company also may, at its option, defer the payment of interest on the notes for a period up to 20 consecutive quarters, provided that interest will also accrue on the deferred payments of interest. As of December 31, 2018, the Company was current on all interest payments due. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | NOTE 17. EMPLOYEE BENEFIT PLANS The Company maintains an employee savings plan under Section 401(k) of the Internal Revenue Code. This plan covers substantially all full-time employees who have attained the age of 21. Employees may contribute a percentage of their annual gross salary as limited by the federal tax laws. The Company matches employee contributions based on the plan guidelines. The Company contribution totaled $0.6 million for years ended December 31, 2018 and 2017, and $0.5 million for the year ended December 31, 2016. The Company has a compensated expense policy that allows employees to accrue paid time off for vacation, sick or other unexcused absences up to a specified number of days each year. Employees may sell back a limited amount of unused time at the end of each year or convert the time to an accrued sick time account which is forfeited if unused at termination, but no carry-over or payout of unused time is permitted. |
POST-EMPLOYMENT BENEFITS
POST-EMPLOYMENT BENEFITS | 12 Months Ended |
Dec. 31, 2018 | |
Postemployment Benefits [Abstract] | |
POST-EMPLOYMENT BENEFITS | NOTE 18. POST-EMPLOYMENT BENEFITS The Company has established several nonqualified deferred compensation and post-employment programs providing benefits to certain directors and key management employees. No new participants have been admitted to any of the plans since 2009 and existing benefit levels have been frozen. A summary of the key terms and accounting for each plan are as follows: Supplemental Executive Retirement Plan (“SERP”) – provides a post-retirement income stream to several current and former executives. The estimated present value of the future benefits to be paid during a post-retirement period of 216 months is accrued over the period from the effective date of the agreement to the expected date of retirement. The SERP is an unfunded plan and is considered a general contractual obligation of the Company. The Company recorded expense related to the SERP utilizing a discount rate of 4.0% for the years ended December 31, 2018, 2017, and 2016. CAP Equity Plan (“Plan”) – provides a post-retirement benefit payable in cash to several current and former officers and directors. During 2015, the Company funded a Rabbi Trust to seek to generate returns that will fund the cost of certain deferred compensation agreements associated with the Plan. Some Plan participants elected to have their benefits tied to the value of specific assets, including, for example, the Company’s common stock. The remaining participants elected to continue receiving interest of 8% which is accrued on such participant’s unpaid balance after termination from the Company, subject to the terms of the Plan. The Plan was frozen in 2009, and no additional deferrals are allowed. Director Consultation Plan – provides a post-retirement monthly benefit for continuing to provide consulting services as needed. The gross amounts of the future payments are accrued. Life Insurance Plan – provides an endorsement split dollar benefit to several current and former executives, under which the Company has agreed to maintain an insurance policy during the executive’s retirement and to provide the executive with a death benefit. The estimated cost of insurance for the portion of the policy expected to be paid as a split dollar death benefit in each post-retirement year is measured for the period between expected retirement age and the earlier of (a) expected mortality and (b) age 95. The resulting amount is then allocated on a present value basis to the period ending on the participant’s full eligibility date. A discount rate of 4% and life expectancy based on the 2001 Valuation Basic Table has been assumed. The following table summarizes the liabilities for each plan as of the dates indicated: December 31, 2018 2017 (Dollars in thousands) SERP $ 4,116 $ 4,288 CAP Equity 4,148 4,708 Director Consultation 177 246 Life Insurance 864 932 $ 9,305 $ 10,174 The expense related to the plans noted above totaled $0.3 million, $0.6 million, and $0.8 million for the years ended December 31, 2018, 2017, and 2016, respectively. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 19. SHARE-BASED COMPENSATION The Company provides stock-based awards through its 2015 Long-Term Stock Incentive Plan which provides for awards of restricted stock, restricted stock units, stock options, and performance units to directors, officers, and employees. The cost of equity-based awards under the 2015 Long-Term Stock Incentive Plan generally is based on the fair value of the awards on their grant date. The maximum number of shares that may be utilized for awards under the plan is 1,333,922; including the initial authorization in 2015 of 458,246 for stock options and 196,391 for awards of restricted stock and an additional authorization in 2018 of 467,929 for awards of stock options and 211,356 for awards of restricted stock units. Shares of common stock awarded under the 2015 Long-Term Stock Incentive Plan may be issued from authorized but unissued shares or shares purchased on the open market. Share-based compensation expense related to stock options and restricted stock units recognized was $1.1 million for the year ended December 31, 2018, and $0.9 million for both of the years ended December 31, 2017 and 2016. The table below presents restricted stock unit and stock option activity and related information: Restricted Stock Units Stock Options (Dollars in thousands, except per share data) Shares Weighted Options Weighted Average Weighted Aggregate December 31, 2016 145,580 $ 18.36 407,200 $ 18.41 Granted 18,600 25.76 40,900 25.92 Vested/Exercised (33,780 ) 18.39 (3,600 ) 18.55 Forfeited (5,200 ) 18.55 (11,200 ) 18.55 December 31, 2017 125,200 19.44 433,300 19.11 Granted 26,500 27.42 57,000 27.43 Vested/Exercised (36,480 ) 19.13 (11,100 ) 18.49 Forfeited (3,060 ) 18.55 (7,140 ) 18.55 December 31, 2018 112,160 21.45 472,060 20.14 7.46 $ 881 Vested/Exercisable at December 31, 2018 — $ — 218,660 $ 18.72 7.04 $ 486 The following is a summary of stock options outstanding at December 31, 2018: Options Outstanding Options Exercisable Shares Range Wtd Ave Ave Shares Wtd Ave Ave 5,000 $ 16.00-17.00 $ 16.75 7.14 2,000 $ 16.75 7.14 40,500 17.01-18.00 17.45 7.41 16,200 17.45 7.41 328,660 18.01-18.55 18.54 6.95 192,280 18.54 6.94 29,000 18.56-25.00 24.02 8.55 5,800 24.02 8.55 68,900 25.01-30.55 27.97 9.48 2,380 30.55 8.98 472,060 20.14 7.46 218,660 18.72 7.04 The weighted average fair value of options granted in 2018 and 2017 was $6.29 and $5.30, respectively. The fair value of each option award is estimated on the date of the grant using the Black-Scholes option pricing model. The risk-free interest rate is based on a U.S. Treasury instrument with a life that is similar to the expected life of the option grant. The Company is a newly public company as defined by Securities and Exchange Commission (“SEC”) Staff Accounting Bulletin No. 110. As such, the expected term of the options is based on a calculated average life using the “simplified method.” The following table illustrates the assumptions for the Black-Scholes model used in determining the fair value of options granted: Year Ended December 31, 2018 2017 Fair value per option $ 6.29 $ 5.30 Expected life (years) 6.5 years 6.5 years Expected stock price volatility 13.91 % 13.40 % Expected dividend yield 0.00 % 0.00 % Risk-free interest rate 2.82 % 2.19 % Expected forfeiture rate 0.00 % 0.00 % At December 31, 2018, the Company had $3.2 million of unrecognized compensation expense related to stock options and restricted stock. The remaining period over which compensation cost related to unvested stock options and restricted stock is expected to be recognized is 2.83 years at December 31, 2018. All unexercised options expire ten years after the grant date. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 20. INCOME TAXES The Company recognized the income tax effects of the Tax Reform in its 2017 financial statements in accordance with Staff Accounting Bulletin No. 118 (“SAB 118”), which provides SEC staff guidance for the application of ASC Topic 740, Income Taxes Income tax expense is summarized as follows: For the Year Ended December 31, 2018 2017 2016 (Dollars in thousands) Current Federal $ 469 $ 365 $ 549 State 323 66 24 Deferred Federal 2,195 6,729 2,370 State 140 368 552 $ 3,127 $ 7,528 $ 3,495 The differences between actual income tax expense and the amount computed by applying the federal statutory income tax rate of 21% in 2018 and 35% in 2017 and 2016 to income before income taxes for the periods indicated is reconciled as follows: For the Year Ended December 31, 2018 2017 2016 (Dollars in thousands) Computed income tax expense $ 3,579 $ 3,537 $ 3,455 State income tax, net of federal benefit 365 282 218 Nontaxable municipal security income (622 ) (1,036 ) (544 ) Nontaxable BOLI income (183 ) (243 ) (107 ) Change in federal and state rates applied to deferreds 13 4,871 353 Low income housing tax credit investments (76 ) (44 ) — Other 51 161 120 Actual income tax expense $ 3,127 $ 7,528 $ 3,495 Effective tax rate 18.3 % 74.5 % 35.4 % The components of net deferred taxes as of the periods indicated are summarized as follows: As of December 31, 2018 2017 (Dollars in thousands) Deferred tax assets: Allowance for loan losses $ 2,703 $ 2,356 Deferred compensation and post-employment benefits 1,854 1,993 Non-accrual interest 245 204 Valuation reserve for other real estate 191 346 North Carolina NOL carryover 293 475 Federal NOL carryover 1,231 3,507 AMT credit carryover 316 645 General federal business credit carryover 691 — Unrealized losses on securities 1,061 149 Loan basis differences 50 77 Deposit premium — 104 Fixed assets 123 63 Core deposit intangible 129 52 Investment in partnerships — 9 Other 1,207 1,000 Total deferred tax assets 10,094 10,980 Deferred tax liabilities: Loan servicing rights 653 620 Goodwill 495 126 Core deposit intangible 74 89 Deferred loan costs 1,001 757 Prepaid expenses 14 31 Unrealized gains on securities 105 377 Derivative instruments 29 128 Investment in partnerships 155 — Other 17 21 Total deferred tax liabilities 2,543 2,149 Net deferred tax asset $ 7,551 $ 8,831 The Company measures deferred tax assets and liabilities using enacted tax rates that will apply in the years in which the temporary differences are expected to be recovered or paid. Accordingly, the Company’s deferred tax assets and liabilities were remeasured to reflect the reduction in the U.S. corporate income tax rate from 35 percent to 21 percent, resulting in a $4.9 million decrease in net deferred tax assets as of December 31, 2017. In addition, the Company recognized a reduction in its net deferred tax assets of approximately $0.1 for the year ended December 31, 2017, as a result of a reduction in the expected North Carolina income tax rate from 3.0% to 2.5%. The following table summarizes the amount and expiration dates of the Company’s unused net operating losses: As of December 31, 2018 (Dollars in thousands) Amount Expiration Dates Federal $ 5,857 2031-2037 North Carolina $ 14,969 2026-2029 Federal general business credit $ 691 2037-2038 The Company and its subsidiaries are subject to U.S federal income tax as well as income tax of the states of North Carolina, South Carolina, and Georgia. The Company is no longer subject to examination by taxing authorities for years before 2015. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share | |
EARNINGS PER SHARE | NOTE 21. EARNINGS PER SHARE The following is a reconciliation of the numerator and denominator of basic and diluted net income per share of common stock: For the Year Ended December 31, (Dollars in thousands, except share amounts) 2018 2017 Numerator: Net income $ 13,915 $ 2,579 Denominator: Weighted-average common shares outstanding - basic 6,892,207 6,561,699 Effect of dilutive stock options 72,783 54,248 Effect of dilutive restricted stock units 42,935 42,667 Weighted-average common shares outstanding - diluted 7,007,925 6,658,614 Earnings per share - basic $ 2.02 $ 0.39 Earnings per share - diluted $ 1.99 $ 0.39 The average market price used in calculating the assumed number of dilutive shares issued related to stock options for the years ended December 31, 2018 and 2017 was $26.98 and $24.30, respectively. The average stock price was less than the exercise price for 40,073 and 11,900 options in the years ended December 31, 2018 and 2017, respectively. As a result, these stock options are not deemed dilutive in calculating diluted earnings per share for the periods. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Inputs Value of Loan | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 22. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the components of accumulated other comprehensive income (loss) and changes in those components as of and for the years ended December 31: (Dollars in thousands) Available for Held to Maturity Deferred Tax Cash Flow Total Balance, December 31, 2015 $ (594 ) $ (563 ) $ (579 ) $ — $ (1,736 ) Change in deferred tax valuation allowance attributable to net unrealized losses on investment securities — — 377 — 377 Change in unrealized holding gains/losses on securities available for sale (6,652 ) — — — (6,652 ) Reclassification adjustment for net securities gains included in net income (1,216 ) — — — (1,216 ) Amortization of unrealized losses on securities transferred to held to maturity — 578 — — 578 Reduction in unrealized losses related to held to maturity securities transferred to available-for-sale — 325 — — 325 Change in unrealized holding gains/losses on cash flow hedge — — — 444 444 Reclassification adjustment for cash flow hedge effectiveness — — — 32 32 Income tax expense (benefit) 2,908 (340 ) — (176 ) 2,392 Balance, December 31, 2016 $ (5,554 ) $ — $ (202 ) $ 300 $ (5,456 ) Change in deferred tax valuation allowance attributable to net unrealized losses on investment securities — — 202 — 202 Change in unrealized holding gains/losses on securities available for sale 6,347 — — — 6,347 Reclassification adjustment for net securities losses included in net income 1,102 — — — 1,102 Reclassification adjustment for other than temporary impairment of securities available for sale 757 — — — 757 Change in unrealized holding gains on cash flow hedge — — — 99 99 Reclassification adjustment for cash flow hedge effectiveness — (14 ) (14 ) Income tax expense (benefit) (3,107 ) — — 47 (3,060 ) Balance, December 31, 2017 $ (455 ) $ — $ — $ 432 $ (23 ) Change in unrealized holding gains/losses on securities available for sale (4,956 ) — — — (4,956 ) Reclassification adjustment for net securities losses included in net income 970 — — — 970 Change in unrealized holding gains on cash flow hedge — — — 2 2 Reclassification adjustment for cash flow hedge effectiveness — (431 ) (431 ) Cumulative effect of change in accounting principle 9 — — — 9 Income tax expense (benefit) 904 — — 101 1,005 Balance, December 31, 2018 $ (3,528 ) $ — $ — $ 104 $ (3,424 ) The following table shows the line items in the Consolidated Statements of Operations affected by amounts reclassified from accumulated other comprehensive income (loss): Year Ended December 31, Income Statement (Dollars in thousands) 2018 2017 2016 Line Item Affected Available-for-sale securities Gains(losses) recognized $ (970 ) $ (1,102 ) $ 1,216 Gain (loss) on sale of investments, net Other than temporary impairment — (757 ) Other than temporary impairment on investments Income tax effect 204 678 (449 ) Income tax expense Reclassified out of AOCI, net of tax (766 ) (1,181 ) 767 Net income Held-to-maturity securities Amortization of unrealized losses — — (578 ) Interest income - taxable securities Increase related to transfer from AFS — — — Interest income - taxable securities Reduction related to transfer to AFS — — (325 ) Interest income - taxable securities Income tax effect — — 340 Income tax expense Reclassified out of AOCI, net of tax — — (563 ) Net income Cash flow hedge Interest expense (257 ) (20 ) (16 ) Interest expense - FHLB advances Interest expense (174 ) 34 (16 ) Interest expense - Junior subordinated notes Income tax effect 91 5 12 Income tax expense Reclassified out of AOCI, net of tax (340 ) 19 (20 ) Net income Deferred tax valuation allowance Recognition of reversal of valuation allowance — 202 377 Income tax expense Total reclassified out of AOCI, net of tax $ (1,106 ) $ (960 ) $ 561 Net income |
REGULATORY MATTERS
REGULATORY MATTERS | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
REGULATORY MATTERS | NOTE 23. REGULATORY MATTERS The Company and the Bank are subject to various regulatory capital requirements administered by their respective federal and state banking regulators. Failure to satisfy minimum capital requirements may result in certain mandatory and additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier I capital to average assets (as defined). In July 2013, federal bank regulatory agencies issued final rules to revise their risk-based capital requirements and the method for calculating risk-weighted assets to make them consistent with agreements that were reached by the Basel Committee on Banking Supervision and certain provisions of the Dodd-Frank Act (“Basel III”). On January 1, 2015, the Basel III rules became effective and include transition provisions which implement certain portions of the rules through January 1, 2019. The rule also includes changes in what constitutes regulatory capital, some of which are subject to a transition period. These changes include the phasing-out of certain instruments as qualifying capital. In addition, Tier 2 capital is no longer limited to the amount of Tier 1 capital included in total capital. Mortgage servicing rights, certain deferred tax assets and investments in unconsolidated subsidiaries over designated percentages of common stock are required to be deducted from capital, subject to a transition period. Finally, common equity Tier 1 capital includes accumulated other comprehensive income (which includes all unrealized gains and losses on available-for-sale debt and equity securities), subject to a transition period and a one-time opt-out election. The Bank elected to opt-out of this provision. As such, accumulated comprehensive income is not included in the Bank’s Tier 1 capital. The Bank is subject to various regulatory capital requirements, including a risk-based capital measure. The risk-based guidelines and framework under prompt corrective action provisions include both a definition of capital and a framework for calculating risk-weighted assets by assigning balance sheet assets and off-balance sheet items to broad risk categories. When Basel III is fully phased in on January 1, 2019, the Company and the Bank will be required to maintain a 2.5% capital conservation buffer which is designed to absorb losses during periods of economic distress. This capital conservation buffer is comprised entirely of Common Equity Tier 1 Capital and is in addition to minimum risk-weighted asset ratios. The tables below summarize capital ratios and related information in accordance with Basel III as measured at December 31, 2018 and December 31, 2017. Following are the required and actual capital amounts and ratios for the Bank: Actual For Capital To Be Well- (Dollars in thousands) Amount Ratio Amount Ratio (1) Amount Ratio As of December 31, 2018: Tier 1 Leverage Capital $ 152,137 9.42 % $ 64,589 >4.0% $ 80,737 >5% Common Equity Tier 1 Capital $ 152,137 12.92 % $ 75,046 >6.375% $ 76,517 >6.5% Tier 1 Risk-based Capital $ 152,137 12.92 % $ 92,703 >7.875% $ 94,175 >8% Total Risk-based Capital $ 164,222 13.95 % $ 116,247 >9.875% $ 117,719 >10% As of December 31, 2017: Tier 1 Leverage Capital $ 136,280 8.79 % $ 61,994 >4.0% $ 77,492 >5% Common Equity Tier 1 Capital $ 136,280 11.92 % $ 65,729 >5.75% $ 74,303 >6.5% Tier 1 Risk-based Capital $ 136,280 11.92 % $ 82,876 >7.25% $ 91,450 >8% Total Risk-based Capital $ 147,266 12.88 % $ 105,739 >9.25% $ 114,312 >10% (1) – As of December 31, 2018, includes capital conservation buffer of 1.875%. On a fully phased in basis, effective January 1, 2019, under Basel III, minimum capital ratios to be considered “adequately capitalized” including the capital conservation buffer of 2.5% will be as follows: Tier 1 Leverage Capital – 4.0%; Common Equity Tier 1 Capital – 7.0%; Tier 1 Risk-based Capital – 8.5%; and Total Risk-based Capital – 10.5%. Following are the required and actual capital amounts and ratios for the Company: Actual For Capital Adequacy (Dollars in thousands) Amount Ratio Amount Ratio (1) As of December 31, 2018: Tier I Leverage Capital $ 151,629 9.38 % $ 64,629 >4 % Common Equity Tier 1 Capital $ 137,196 11.65 % $ 75,106 >6.375 % Tier I Risk-based Capital $ 151,629 12.87 % $ 92,777 >7.875 % Total Risk Based Capital $ 163,714 13.90 % $ 116,340 >9.875 % As of December 31, 2017: Tier I Leverage Capital $ 134,470 8.68 % $ 61,927 >4.0 % Common Equity Tier 1 Capital $ 120,861 10.57 % $ 65,775 >5.75 % Tier I Risk-based Capital $ 134,470 11.76 % $ 82,934 >7.25 % Total Risk Based Capital $ 145,457 12.72 % $ 105,812 >9.25 % (1) – As of December 31, 2018, includes capital conservation buffer of 1.875%. On a fully phased in basis, effective January 1, 2019, under Basel III, minimum capital ratios to be considered “adequately capitalized” including the capital conservation buffer of 2.5% will be as follows: Tier 1 Leverage Capital – 4.0%; Common Equity Tier 1 Capital – 7.0%; Tier 1 Risk-based Capital – 8.5%; and Total Risk-based Capital – 10.5%. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 24. COMMITMENTS AND CONTINGENCIES To accommodate the financial needs of its customers, the Company makes commitments under various terms to lend funds. These commitments include revolving credit agreements, term loan commitments and short-term borrowing agreements. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each 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: December 31, (Dollars in Lines of credit $ 179,210 Standby letters of credit 964 $ 180,174 The Company had outstanding commitments to originate loans as follows: December 31, 2018 Amount Range of Rates (Dollar in thousands) Fixed $ 19,758 4.50% to 7.99% Variable 7,338 4.74% to 8.00% $ 27,096 The allowance for unfunded commitments was $0.1 million at December 31, 2018 and 2017. The Company is exposed to loss as a result of its obligation for representations and warranties on loans sold to Fannie Mae and maintained a reserve of $0.3 million as of December 31, 2018 and 2017. 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 | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES | NOTE 25. FAIR VALUE DISCLOSURES Overview Fair value measurements are determined based on the assumptions that market participants would use in pricing an asset or liability. As a basis for considering market participant assumptions in fair value measurements, ASC Topic 820 (“ASC 820”), Fair Value Measurements and Disclosures Fair Value Hierarchy Level 1 Valuation is based on inputs that are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 Valuation is based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, such as interest rates, yield curves observable at commonly quoted intervals, and other market-corroborated inputs. Level 3 Valuation is generated from techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include the use of option pricing models, discounted cash flow models and similar techniques. In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon models that primarily use, as inputs, observable market-based parameters. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. The Company evaluates fair value measurement inputs on an ongoing basis in order to determine if there is a change of sufficient significance to warrant a transfer between levels. Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincides with the Company’s valuation process. Fair Value Option ASC 820 allows companies to report selected financial assets and liabilities at fair value using the fair value option. The changes in fair value are recognized in earnings and the assets and liabilities measured under this methodology are required to be displayed separately on the balance sheet. The Company made the election in June 2018, to record mortgage loans held-for-sale at fair value under the fair value option, which allows for a more effective offset of the changes in fair values of the loans and the derivative instruments used to hedge them without the burden of complying with the requirements for hedge accounting. Financial Assets and Financial Liabilities Measured on a Recurring Basis The Company uses the following methods and assumptions in estimating the fair value of its financial assets and financial liabilities on a recurring basis: Investment Securities Available-for-Sale 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. Equity Securities Equity securities represent investments in exchange traded mutual funds which are valued by reference to quoted market prices and considered a Level 1 security. Mortgage Loans Held-for-Sale Mortgage loans held-for-sale are recorded at fair value on a recurring basis. The estimated fair value is determined using Level 3 inputs based on observable data such as the existing forward commitment terms or the current market value of similar loans. 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 IRLCs, forward sale commitments, and interest rate swaps. IRLCs 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. The following tables present financial assets and financial liabilities measured at fair value on a recurring basis at the dates indicated, segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value: December 31, 2018 Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: Equity securities $ 6,178 $ — $ — $ 6,178 Securities available for sale: U.S. Treasury & Government Agencies 4,949 29,041 — 33,990 Municipal Securities — 114,402 — 114,402 Mortgage-backed Securities - Guaranteed — 85,184 — 85,184 Collateralized Mortgage Obligations - Guaranteed — 21,889 — 21,889 Collateralized Mortgage Obligations - Non Guaranteed — 69,171 — 69,171 Collateralized Loan Obligations — 15,077 15,077 Corporate bonds — 19,532 493 20,025 Total securities available for sale 4,949 354,296 493 359,738 Mortgage loans held for sale — — 2,431 2,431 Loan servicing rights — — 2,837 2,837 Interest rate swaps — 354 — 354 Mortgage derivatives — — 34 34 Total recurring assets at fair value $ 11,127 $ 354,650 $ 5,795 $ 371,572 Liabilities: Interest rate swaps $ — $ 462 $ — $ 462 Mortgage derivatives — — 22 22 Total recurring liabilities at fair value $ — $ 462 $ 22 $ 484 December 31, 2017 Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets Equity securities $ 6,095 $ — $ — $ 6,095 Securities available for sale: U.S. Treasury & Government Agencies 2,496 18,027 — 20,523 Municipal Securities — 93,859 — 93,859 Mortgage-backed Securities - Guaranteed — 128,039 — 128,039 Collateralized Mortgage Obligations - Guaranteed — 10,302 — 10,302 Collateralized Mortgage Obligations - Non Guaranteed — 64,693 — 64,693 Collateralized Loan Obligations 5,539 5,539 Corporate bonds — 18,799 492 19,291 Mutual funds 617 — — 617 Total securities available for sale 3,113 339,258 492 342,863 Loan servicing rights — — 2,756 2,756 Interest rate swaps — 561 — 561 Mortgage derivatives — — 73 73 Total assets $ 9,208 $ 339,819 $ 3,321 $ 352,348 There were no liabilities measured at fair value on a recurring basis as of December 31, 2017. 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: Years Ended December 31, 2018 2017 (Dollars in thousands) Balance at beginning of period $ 3,321 $ 4,807 AFS securities Fair value adjustment 1 1 Transfer to Level 2 — (1,087 ) Sold — (566 ) Mortgage loans held for sale 2,431 — Loan servicing right activity, included in servicing income, net Capitalization from loans sold 433 618 Fair value adjustment (352 ) (465 ) Mortgage derivative gains(losses) included in other income (61 ) 13 Balance at end of period $ 5,773 $ 3,321 Financial Assets Measured on a Nonrecurring Basis The Company uses the following methods and assumptions in estimating the fair value of its financial assets on a nonrecurring basis: SBA Loans Held for Sale SBA loans held for sale are carried at the lower of cost or fair value. The fair value of SBA loans held for sale is based on what secondary markets are currently offering for portfolios with similar characteristics and 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. REO REO 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. REO carried at fair value is classified as Level 3. SBIC Holdings SBIC holdings are carried at the lower of cost or cost less a valuation allowance. From time to time, impairment of SBIC is evident as a result of underlying financial review and a valuation allowance is established. SBIC carried at cost less a valuation allowance is classified as Level 3. The following table presents nonfinancial assets measured at fair value on a nonrecurring basis at the dates indicated, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: December 31, 2018 Level 1 Level 2 Level 3 Total (Dollars in thousands) Collateral dependent impaired loans: One-to four family residential $ — $ — $ 845 $ 845 Commercial real estate — — 3,835 3,835 Home equity loans and lines of credit — — 283 283 Other construction and land — — 365 365 Real estate owned: One-to-four family residential — — 228 228 Commercial real estate — — 949 949 Other construction and land — — 1,316 1,316 Total assets $ — $ — $ 7,821 $ 7,821 December 31, 2017 Level 1 Level 2 Level 3 Total (Dollars in thousands) Collateral dependent impaired loans: One-to-four family residential $ — $ — $ 2,266 $ 2,266 Commercial real estate — — 4,050 4,050 Home equity loans and lines of credit — — 313 313 Other construction and land — — 571 571 Real estate owned: One-to-four family residential — — 288 288 Commercial real estate — — 544 544 Other construction and land — — 1,736 1,736 Total assets $ — $ — $ 9,768 $ 9,768 There were no liabilities measured at fair value on a nonrecurring basis as of December 31, 2018, or 2017. Impaired loans totaling $5.6 million at December 31, 2018 and $4.4 million at December 31, 2017 were measured using the present value of expected future cash flows. These impaired loans were not deemed to be measured at fair value on a nonrecurring basis. The following table provides information describing the unobservable inputs used in Level 3 fair value measurements at December 31, 2018. Valuation Technique Unobservable Input General Impaired loans Discounted Appraisals Collateral discounts and estimated selling cost 0% - 30 % Real estate owned Discounted Appraisals Collateral discounts and estimated selling cost 0% - 30 % Corporate bonds Discounted Cash Flows Recent trade pricing 0% -10 % Loan servicing rights Discounted Cash Flows Prepayment speed 8% - 16 % Discount rate 10% - 14 % Mortgage loans held for sale External pricing model Recent trade pricing 99% - 101 % Mortgage derivatives External pricing model Pull-through rate 78%-100 % SBIC Indicative value provided by fund Current operations and financial condition N/A Fair Value of Financial Assets and Financial Liabilities The following table includes the estimated fair value of the Company’s financial assets and financial liabilities at the dates indicated: Fair Value Measurements at December 31, 2018 Carrying (Dollars in thousands) Amount Total Level 1 Level 2 Level 3 Assets: Cash and equivalents $ 69,119 $ 69,119 $ 69,119 $ — $ — Equity securities 6,178 6,178 6,178 — — Securities available for sale 359,739 359,739 4,949 354,297 493 Loans held for sale 7,570 8,114 — 5,683 2,431 Loans receivable, net 1,076,069 1,046,136 — — 1,046,136 Other investments, at cost 12,039 12,039 — 12,039 — Accrued interest receivable 6,443 6,443 — 6,443 — BOLI 32,886 32,886 — 32,886 — Loan servicing rights 2,837 2,837 — — 2,837 Mortgage derivatives 34 34 — — 34 Interest rate swaps 354 354 — 354 — SBIC investments 3,839 3,839 — — 3,839 Liabilities: Demand deposits $ 800,291 $ 800,291 $ — $ 800,291 $ — Time deposits 420,949 424,054 — — 424,054 Federal Home Loan Bank advances 213,500 213,513 — 213,513 — Junior subordinated debentures 14,433 12,440 — 12,440 — Other borrowings 9,299 9,253 — 9,253 — Accrued interest payable 1,647 1,647 — 1,647 — Mortgage derivatives 22 22 — — 22 Interest rate swaps 462 462 — 462 — Fair Value Measurements at December 31, 2017 Carrying (Dollars in thousands) Amount Total Level 1 Level 2 Level 3 Assets: Cash and equivalents $ 109,467 $ 109,467 $ 109,467 $ — $ — Equity securities 6,095 6,095 6,095 — — Securities available for sale 342,863 342,863 3,113 339,258 492 Loans held for sale 3,845 4,211 — 4,211 — Loans receivable, net 1,005,139 992,993 — — 992,993 Other investments, at cost 12,386 12,386 — 12,386 — Accrued interest receivable 5,405 5,405 — 5,405 — BOLI 32,150 32,150 — 32,150 — Loan servicing rights 2,756 2,756 — — 2,756 Mortgage derivatives 73 73 — — 73 Interest rate swaps 561 561 — 561 — SBIC investments 3,491 3,491 — — 3,491 Liabilities: Demand deposits $ 765,442 $ 765,442 $ — $ 765,442 $ — Time deposits 396,735 390,806 — — 390,806 FHLB advances 223,500 223,627 — 223,627 — Junior subordinated debentures 14,433 14,433 — 14,433 — Other borrowings 8,623 8,620 — 8,620 — Accrued interest payable 935 935 — 935 — |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
REVENUE RECOGNITION | NOTE 26. Revenue Recognition On January 1, 2018, the Company adopted ASU 2014-09 Revenue from Contracts with Customers (Topic 606) Summary of Significant Accounting Policies ASC Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain noninterest income streams such as fees associated with mortgage servicing rights, financial guarantees, derivatives, and certain credit card fees are also not in scope of the new guidance. ASC Topic 606 is applicable to noninterest revenue streams such as deposit related fees, interchange fees, merchant income, and annuity and insurance commissions. However, the recognition of these revenue streams did not change significantly upon adoption of ASC Topic 606. Noninterest revenue streams in-scope of ASC Topic 606 are discussed below. Service Charges on Deposit Accounts Service charges on deposit accounts consist of account analysis fees (i.e., net fees earned on analyzed business and public checking accounts), monthly service fees, check orders, and other deposit account related fees. The Company’s performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Check orders and other deposit account related fees are largely transactional-based, and therefore, the Company’s performance obligation is satisfied and related revenue recognized at a point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts. Interchange Fees Interchange fees are primarily comprised of debit and credit card income, ATM fees, merchant services income, and other service charges. Debit and credit card income is primarily comprised of interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks, such as Visa. ATM fees are primarily generated when a Company cardholder uses a non-Company ATM or a non-Company cardholder uses a Company ATM. Merchant services income mainly represents fees charged to merchants to process their debit and credit card transactions, in addition to account management fees. The Company’s performance obligation for fees, exchange, and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or within days of the transaction. Other Other noninterest income consists of other recurring revenue streams such as safety deposit box rental fees, revenue from processing wire transfers, bill pay service, cashier’s checks, and other services. Safe deposit box rental fees are charged to the customer on an annual basis and recognized upon receipt of payment. The Company determined that since rentals and renewals occur fairly consistently over time, revenue is recognized on a basis consistent with the duration of the performance obligation. The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of ASC Topic 606, for the years ended December 31, 2018, 2017, and 2016. For the years ended December 31, (dollars in thousands) 2018 2017 2016 Noninterest income In-scope of Topic 606: Service charges on deposit accounts $ 1,673 $ 1,672 $ 1,537 Interchange fees 1,102 913 732 Other 1,168 726 450 Noninterest income (in-scope of Topic 606) 3,943 3,311 2,719 Noninterest income (out-of-scope of Topic 606) 2,047 1,695 4,352 Total noninterest income $ 5,990 $ 5,006 $ 7,071 Contract Balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers and therefore, does not experience significant contract balances. As of December 31, 2018 and December 31, 2017, the Company did not have any significant contract balances. Contract Acquisition Costs In connection with the adoption of ASC Topic 606, an entity is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. Upon adoption of ASC Topic 606, the Company did not capitalize any contract acquisition cost. |
SHARE REPURCHASES
SHARE REPURCHASES | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
SHARE REPURCHASES | NOTE 27. 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 stock repurchase program was not further extended. The following table summarizes share repurchase activity through December 31, 2018 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 April 1, 2017 to June 30, 2017 — $ — — 209,750 July 1, 2017 to September 30, 2017 — $ — — 209,750 October 1, 2017 to December 31, 2017 — $ — — 209,750 January 1, 2018 to December 31, 2018 Total as of December 31, 2018 13,000 $ 23.12 13,000 209,750 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 28. SUBSEQUENT EVENTS On January 15, 2019, Entegra announced its entry into an Agreement and Plan of Merger and Reorganization (the “merger agreement”) to merge with and into SmartFinancial, Inc. (“SmartFinancial”) a Tennessee corporation. Under the terms of the merger agreement, each outstanding share of Entegra common stock will be converted into the right to receive 1.215 shares of SmartFinancial common stock. The merger is subject to regulatory and shareholder approvals. For additional information, reference should be made to the text of the merger agreement, filed as an exhibit to the Current Report on Form 8-K that was filed with the Securities and Exchange Commission on January 16, 2019, and to other information regarding SmartFinancial and the Company, their respective businesses and the status of their proposed merger, as reported from time to time in other filings with the Securities and Exchange Commission. |
PARENT COMPANY FINANCIAL INFORM
PARENT COMPANY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
PARENT COMPANY FINANCIAL INFORMATION | NOTE 29. PARENT COMPANY FINANCIAL INFORMATION Following is condensed financial information of Entegra Financial Corp. (parent company only): Condensed Balance Sheets December 31, 2018 2017 (Dollars in thousands) Assets Cash $ 4,382 $ 3,244 Equity investment in subsidiary 177,709 167,252 Equity investment in trust 433 433 Other assets 562 624 Total assets $ 183,086 $ 171,553 Liabilities and Shareholders’ Equity Junior subordinated debentures $ 14,433 $ 14,433 Other borrowings 5,000 5,000 Other liabilities 781 807 Shareholders’ equity 162,872 151,313 Total liabilities and shareholders’ equity $ 183,086 $ 171,553 Condensed Statements of Operations Year Ended December 31, 2018 2017 2016 (Dollars in thousands) Income Interest income $ 59 $ 56 $ 81 Dividends from subsidiary 1,017 20,630 510 1,076 20,686 591 Expenses Interest 862 626 532 Other 173 361 358 1,035 987 890 Income (loss) before income taxes and equity in undistributed income of subsidiary 41 19,699 (299 ) Income tax benefit allocated from consolidated income tax return 205 326 283 Income (loss) before equity in undistributed income (loss) of subsidiary 246 20,025 (16 ) Equity in earnings of subsidiary greater than (less than) dividends received 13,669 (17,446 ) 6,392 Net income $ 13,915 $ 2,579 $ 6,376 Condensed Statements of Cash Flows Year Ended December 31, 2018 2017 2016 (Dollars in thousands) Operating activities: Net income $ 13,915 $ 2,579 $ 6,376 Adjustments to reconcile net income to net cash provided by operating activities: Undistributed earnings of subsidiary (greater than) less than dividends received (13,669 ) 17,446 (6,392 ) (Increase) decrease in other assets 22 (97 ) 55 Increase (decrease) in other liabilities (186 ) 166 97 Net cash provided by operating activities $ 82 $ 20,094 $ 136 Investing activities: Investment in subsidiary $ — $ (25,448 ) $ (13,486 ) Net cash used in investing activities $ — $ (25,448 ) $ (13,486 ) Financing activities: Proceeds from other borrowings $ — $ 5,000 $ — Cash paid for shares surrendered upon vesting of restricted stock (147 ) (149 ) (87 ) Cash received (paid for shares surrendered) upon exercise of stock options 117 (6 ) — Repurchase of stock — (301 ) (1,835 ) Reimbursement from bank subsidiary for share-based compensation 1,086 917 864 Net cash provided by (used in) financing activities $ 1,056 $ 5,461 $ (1,058 ) Increase (decrease) in cash and cash equivalents 1,138 107 (14,408 ) Cash and cash equivalents, beginning of year 3,244 3,137 17,545 Cash and cash equivalents, end of year $ 4,382 $ 3,244 $ 3,137 Supplemental disclosure of cash flow information: Interest on other borrowings $ 856 $ 605 $ 532 Noncash investing and financing activities: Transfer of Rabbi Trust investments to Company stock $ — $ 100 $ — Common stock issued in acquisitions $ — $ 9,872 $ — |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Estimates | Estimates Material estimates that are particularly susceptible to significant change, in the near term, relate to the determination of the allowance for loan losses, the valuation of acquired loans, separately identifiable intangible assets associated with mergers and acquisitions, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, and the valuation of deferred tax assets. |
Principles of Consolidation | Principles of Consolidation |
Reclassification | Reclassification |
Business Combinations | Business Combinations 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. In addition, acquisition-related costs and restructuring costs are recognized as period expenses as incurred. |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Equity Securities | Equity Securities |
Investment Securities | Investment Securities Held-to-maturity (“HTM”) securities represent those securities that we have the positive intent and ability to hold to maturity and are carried at amortized cost. Realized gains and losses on the sale of securities and other-than-temporary impairment (“OTTI”) charges are recorded as a component of noninterest income in the Consolidated Statements of Operations. Realized gains and losses on the sale of securities are determined using the specific-identification method. Bond premiums are amortized to the call date and bond discounts are accreted to the maturity date, both on a level yield basis. We perform a quarterly review of our securities to identify those that may indicate OTTI. Our policy for OTTI within the debt securities portfolio is based upon a number of factors, including, but not limited to, the length of time and extent to which the estimated fair value has been less than cost, the financial condition of the underlying issuer and the ability of the issuer to meet contractual obligations. Other factors include the likelihood of the security’s ability to recover any decline in its estimated fair value and whether management intends to sell the security, or if it is more likely than not that management will be required to sell the investment security prior to the security’s recovery. In the third quarter of 2016, the Company transferred its HTM investment portfolio to AFS in order to provide more flexibility managing its investment portfolio. As a result, the Company was prohibited from classifying any investment securities as HTM for two years from the date of the transfer. |
Loans Held for Sale | Loans Held for Sale Fair Value Measurements and Disclosures Small Business Administration (“SBA”) loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value. When a loan is placed in the held-for-sale category, we stop amortizing the related deferred fees and costs. The remaining unamortized fees and costs are recognized as part of the carrying amount of the loan at the time it is sold. We generally sell the guaranteed portion of SBA loans in the secondary market and retain the unguaranteed portion in our portfolio. Upon sale of the guaranteed portion of an SBA loan, we recognize a portion of the gain on sale into income and defer a portion of the gain related to the relative fair value of the unguaranteed loan balance we retain. The deferred gain is amortized into income over the remaining life of the loan. Gains and losses on sales of loans held for sale are included in the Consolidated Statements of Operations in Mortgage Banking income for residential loans and Gains on sale of SBA loans for SBA loans. Net unrealized losses are recognized by charges to Mortgage Banking income. |
Loans Receivable | Loans Receivable Generally, consumer loans are charged down to their estimated collateral value after reaching 90 days past due. The number of days past due is determined by the amount of time when the payment was due based on contractual terms. Commercial loans are charged off as management becomes aware of facts and circumstances that raise doubt as to the collectability of all or a portion of the principal and when we believe a confirmed loss exists. The Company originates SBA loans and sells the guaranteed portion into the secondary market. When the Company retains the right to service a sold SBA loan, the previous carrying amount is allocated between the guaranteed portion of the loan sold, the unguaranteed portion of the loan retained and the retained SBA servicing right based on their relative fair values on the date of transfer. |
Nonaccrual Loans | Nonaccrual Loans – For loans modified in a troubled debt restructuring, the loan is generally placed on non-accrual until there is a period of satisfactory payment performance by the borrower (either immediately before or after the restructuring), generally defined as six months, and the ultimate collectability of all amounts contractually due is not in doubt. |
Troubled Debt Restructurings (TDR) | Troubled Debt Restructurings (“TDR”) All TDRs are considered to be impaired loans and will be reported as an impaired loan for the remaining life of the loan, unless the restructuring agreement specifies an interest rate equal to or greater than the rate that would be accepted at the time of the restructuring for a new loan with comparable risk and it is fully expected that the original principal and interest will be collected according to the restructured agreement. We may also remove a loan from TDR and impaired status if the TDR is subsequently restructured and at the time of the subsequent restructuring the borrower is not experiencing financial difficulties and, under the terms of the subsequent restructuring agreement, no concession has been granted to the borrower. |
Allowance for Loan Losses (ALL) | Allowance for Loan Losses (“ALL”) A loan is considered impaired when it is probable that we will be unable to collect all principal and interest payments due according to the original contractual terms of the loan agreement. We individually evaluate all loans classified as substandard or nonaccrual greater than $350,000 for impairment. If the impaired loan is considered collateral dependent, a charge-off is taken based upon the appraised value of the property (less an estimate of selling costs if foreclosure is anticipated). If the impaired loan is not collateral dependent, a specific reserve is established based upon an estimate of the future discounted cash flows after consideration of modifications and the likelihood of future default and prepayment. The allowance for non-impaired loans consists of a base historical loss reserve and a qualitative reserve. The loss rates for the base loss reserve are segmented into 18 loan categories and contain loss rates ranging from approximately 0.5% to 0.65%. The qualitative reserve adjusts the average loss rates utilized in the base loss reserve for trends in the following internal and external factors: Non-accrual and classified loans; Collateral values; Loan concentrations and loan growth; and Economic conditions – including unemployment rates, housing prices and sales, and regional economic outlooks. Qualitative reserve adjustment factors are decreased for favorable trends and increased for unfavorable trends. These factors are subject to further adjustment as economic and other conditions change. |
Fixed Assets | Fixed Assets |
Real Estate Owned | Real Estate Owned (“REO”) Subsequent to foreclosure, real estate owned is recorded at the lower of carrying amount or fair value less estimated costs to sell. Valuations are periodically performed by management, but not less than every eighteen months, and an additional allowance for losses is established by a charge to Net Cost of Operation of Real Estate Owned in the Consolidated Statements of Operations, if necessary. |
Other Investments, at cost | Other Investments, at cost FHLB stock is carried at cost and evaluated for impairment based on the ultimate recoverability of the par value. The Company has evaluated its FHLB stock and concluded that it is not impaired because the FHLB Atlanta is currently paying cash dividends and redeeming stock at par. The FHLB requires members to purchase and hold a specified level of stock based upon the members asset value, level of borrowings and participation in other programs offered. Stock in the FHLB is non-marketable and is redeemable at the discretion of the FHLB. Members do not purchase stock in the FHLB for the same reasons that traditional equity investors acquire stock in an investor-owned enterprise. Rather, members purchase stock to obtain access to the low-cost products and services offered by the FHLB. Unlike equity securities of traditional for-profit enterprises, the stock of the FHLB does not provide its holders with an opportunity for capital appreciation because, by regulation, FHLB stock can only be purchased, redeemed and transferred at par value. Both cash and stock dividends are reported as Other interest income in the Consolidated Statements of Operations. |
Bank Owned Life Insurance (BOLI) | Bank Owned Life Insurance (“BOLI”) |
Loan Servicing Rights (LSR) | Loan Servicing Rights (“LSR”) Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal (generally 25 basis points for residential mortgage loans and 100 basis points for SBA loans) or a fixed amount per loan, and are recorded as income when earned. Changes in fair value of LSRs are netted against loan servicing fee income and reported as Servicing income, net in the Consolidated Statements of Operations. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Core deposit intangibles are amortized over the estimated useful lives of the deposit accounts acquired (generally seven years on a straight line basis). |
Derivative Financial Instruments - Interest Rate Lock Commitments and Forward Sale Contracts | Derivative Financial Instruments and Hedging Activities – Interest Rate Lock Commitments and Forward Sale Contracts Our interest rate risk management strategy incorporates the use of derivative instruments to minimize fluctuations in net income that are caused by interest rate volatility. The goal is to manage interest rate sensitivity by modifying the repricing or maturity characteristics of certain balance sheet assets and liabilities so that net interest revenue is not, on a material basis, adversely affected by movements in interest rates. We view this strategy as a prudent management of interest rate risk, such that net income is not exposed to undue risk presented by changes in interest rates. In carrying out this part of its interest rate risk management strategy, we use interest rate derivative contracts; primarily interest rate swaps. Interest rate swaps generally involve the exchange of fixed- and variable-rate interest payments between two parties, based on a common notional principal amount and maturity date. We classify our derivative financial instruments as either (1) a hedge of an exposure to changes in the fair value of a recorded asset or liability (“fair value hedge”), (2) a hedge of an exposure to changes in the cash flows of a recognized asset, liability or forecasted transaction (“cash flow hedge”), or (3) derivatives not designated as accounting hedges. Changes in the fair value of derivatives classified as fair value hedges and derivatives not designated as hedges are recognized in current period earnings. Changes in the fair value of derivatives classified as cash flow hedges are recorded in Accumulated Other Comprehensive Income. |
Small Business Investment Company Investments | Small Business Investment Company Holdings (“SBIC”) – |
Advertising Expense | Advertising Expense |
Income Taxes | Income Taxes Deferred income tax assets and liabilities are determined using the asset and liability method and are reported net in the Consolidated Balance Sheets. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax basis of assets and liabilities and recognizes enacted changes in tax rate and laws. When deferred tax assets are recognized, they are subject to a valuation allowance based on management’s judgment as to whether realization is more likely than not. In determining the need for a valuation allowance, the Company considers the following sources of taxable income: Future reversals of existing taxable temporary differences; Future taxable income exclusive of reversing temporary differences and carry forwards; Taxable income in prior carryback years; and Tax planning strategies that would, if necessary, be implemented As a result of the analysis above, the Company concluded that a valuation allowance was not necessary as of December 31, 2018 and 2017. Accrued taxes represent the net estimated amount due to or from taxing jurisdictions and are reported in other assets or other liabilities, as appropriate, in the Consolidated Balance Sheets. We evaluate and assess the relative risks and appropriate tax treatment of transactions and filing positions after considering statutes, regulations, judicial precedent and other information and maintain tax accruals consistent with the evaluation of these relative risks and merits. Changes to the estimate of accrued taxes occur periodically due to changes in tax rates, interpretations of tax laws, the status of examinations being conducted by taxing authorities and changes to statutory, judicial and regulatory guidance. These changes, when they occur, can affect deferred taxes and accrued taxes, as well as the current period’s income tax expense and can be significant to our operating results. As a result of the Tax Cuts and Jobs Act of 2017, the Company realized deferred tax expense of $4.9 million upon the revaluation in December 2017 of its deferred assets and deferred liabilities at the newly enacted Federal tax rate of 21%. Tax positions are recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50 percent likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Interest and/or penalties related to income tax matters are recognized in income tax expense. |
Allowance for Unfunded Commitments | Allowance for Unfunded Commitments – |
Junior Subordinated Notes | Junior Subordinated Notes – |
Stock-based Compensation | Stock-based Compensation - Compensation-Stock Compensation Tax benefits realized upon the vesting of restricted shares that exceed the expense previously recognized for reporting purposes are recorded through the income statement as income tax benefit. If the tax benefit upon vesting is less than the expense previously recorded, the shortfall is recorded through the income statement as income tax expense. |
Segments | Segments – |
Subsequent Events | Subsequent Events – |
Recently Issued Accounting Standards | Recently Issued Accounting Standards - 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. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. Fair Value of Assets and Liabilities In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. Principal versus Agent Considerations (Reporting Revenue Gross versus Net), Identifying Performance Obligations and Licensing, Narrow-Scope Improvements and Practical Expedients, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. Revenue Recognition In June 2016, the FASB issued amendments to ASU 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. In August 2016, the FASB issued ASU 2016-15 , Classification of Certain Cash Receipts and Cash Payments. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) Leases (Topic 842) – Targeted Improvements, Leases (Topic 842) - Narrow-Scope Improvements for Lessors Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
As Recorded by Chattahoochee [Member] | |
Schedule of Assets and Liabilities assumed at the date of acquisition and their initial fair values | The purchased assets and assumed liabilities were recorded at their acquisition date fair values and are summarized in the table below: As Recorded by Fair Value As Recorded by (Dollars in thousands) Chattahoochee Adjustments the Company Assets Cash and cash equivalents $ 22,625 $ — $ 22,625 Loans 159,540 (570 ) 158,970 Fixed assets 3,945 (408 ) 3,537 Accrued interest receivable 421 — 421 Core deposit intangible — 2,070 2,070 Deferred tax asset 751 (751 ) — Other assets 1,579 (8 ) 1,571 Total assets acquired $ 188,861 $ 333 $ 189,194 Liabilities Deposits $ 165,624 $ 472 $ 166,096 Accrued Interest payable 102 (14 ) 88 Other liabilities 4,463 (14 ) 4,449 Total liabilities assumed 170,189 444 170,633 Excess of assets acquired over liabilities assumed $ 18,672 $ (111 ) $ 18,561 Consideration transferred Cash $ 25,448 Common stock issued (395,666 shares) 9,872 Total fair value of consideration transferred 35,320 Goodwill $ 16,759 |
As Recorded by Stearns [Member] | |
Schedule of Assets and Liabilities assumed at the date of acquisition and their initial fair values | The purchased assets and assumed liabilities were recorded at their acquisition date fair values and are summarized in the table below: (Dollars in thousands) As Recorded Fair Value As Recorded by 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 Total assets acquired 2,215 1,782 3,997 Liabilities 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) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Investment Securities Tables Abstract | |
Schedule of holdings of our trading account | The following table presents the holdings of our equity securities as of December 31, 2018, and 2017: December 31, 2018 2017 (Dollars in thousands) Mutual funds $ 6,178 $ 6,095 |
Schedule of investment securities available for sale | The amortized cost and estimated fair values of securities classified as AFS are summarized as follows: December 31, 2018 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. Treasury & Government Agencies $ 34,068 $ 74 $ (152 ) $ 33,990 Municipal Securities 115,860 209 (1,667 ) 114,402 Mortgage-backed Securities - Guaranteed 86,664 98 (1,578 ) 85,184 Collateralized Mortgage Obligation - Guaranteed 22,492 47 (650 ) 21,889 Collateralized Mortgage Obligation - Non Guaranteed 69,774 125 (728 ) 69,171 Collateralized Loan Obligations 15,534 1 (458 ) 15,077 Corporate bonds 19,936 232 (143 ) 20,025 $ 364,328 $ 786 $ (5,376 ) $ 359,738 December 31, 2017 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) U.S. Treasury & Government Agencies $ 20,529 $ 7 $ (13 ) $ 20,523 Municipal Securities 93,250 975 (366 ) 93,859 Mortgage-backed Securities - Guaranteed 129,314 112 (1,387 ) 128,039 Collateralized Mortgage Obligation - Guaranteed 10,559 — (257 ) 10,302 Collateralized Mortgage Obligation - Non Guaranteed 64,706 323 (336 ) 64,693 Collateralized Loan Obligations 5,555 6 (22 ) 5,539 Corporate bonds 18,925 409 (43 ) 19,291 Mutual funds 629 — (12 ) 617 $ 343,467 $ 1,832 $ (2,436 ) $ 342,863 |
Unrealized Losses Related to Held to Maturity Securities Previously Recognized in Other Comprehensive Income | Information pertaining to securities with gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: December 31, 2018 Less Than 12 Months More Than 12 Months Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (Dollars in thousands) Available-for-Sale: U.S. Treasury & Government Agencies $ 23,423 $ 152 $ — $ — $ 23,423 $ 152 Municipal Securities 33,028 421 56,153 1,246 89,181 1,667 Mortgage-backed Securities - Guaranteed 27,692 370 45,619 1,208 73,311 1,578 Collateralized Mortgage Obligations - Guaranteed 2,042 19 15,294 631 17,336 650 Collateralized Mortgage Obligations - Non Guaranteed 22,383 185 30,471 543 52,854 728 Collateralized loan obligations 11,618 404 1,449 54 13,067 458 Corporate bonds 2,492 45 3,345 98 5,837 143 $ 122,678 $ 1,596 $ 152,331 $ 3,780 $ 275,009 $ 5,376 December 31, 2017 Less Than 12 Months More Than 12 Months Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (Dollars in thousands) Available-for-Sale: U.S. Treasury & Government Agencies $ 9,943 $ 11 $ 998 $ 2 $ 10,941 $ 13 Municipal Securities 11,043 61 22,982 305 34,025 366 Mortgage-backed Securities - Guaranteed 51,185 447 47,637 940 98,822 1,387 Collateralized Mortgage Obligations - Guaranteed 4,139 57 6,163 200 10,302 257 Collateralized Mortgage Obligations - Non Guaranteed 25,862 225 10,654 111 36,516 336 Collateralized loan obligations 3,520 22 — — 3,520 22 Corporate bonds 1,304 9 1,044 34 2,348 43 Mutual funds — — 617 12 617 12 $ 106,996 $ 832 $ 90,095 $ 1,604 $ 197,091 $ 2,436 |
Securities Gross Unrealized Losses Position | December 31, 2018 Less Than More Than Total U.S. Treasury & Government Agencies 14 — 14 Municipal Securities 31 52 83 Mortgage-backed Securities - Guaranteed 21 43 64 Collateralized Mortgage Obligations - Guaranteed 1 8 9 Collateralized Mortgage Obligations - Non Guaranteed 12 22 34 Collateralized Loan Obligations 6 1 7 Corporate bonds 3 4 7 88 130 218 December 31, 2017 Less Than More Than Total U.S. Treasury & Government Agencies 6 1 7 Municipal Securities 11 22 33 Mortgage-backed Securities - Guaranteed 42 34 76 Collateralized Mortgage Obligations - Guaranteed 2 3 5 Collateralized Mortgage Obligations - Non Guaranteed 16 8 24 Collateralized Loan Obligations 2 — 2 Corporate bonds 2 1 3 Mutual funds — 1 1 81 70 151 |
Proceeds from Sales of Securities Available For Sale and Their Corresponding Gross Realized Gains and Losses | The Company received proceeds from sales of securities classified as AFS and corresponding gross realized gains and losses as follows: For the Years Ended December 31, 2018 2017 2016 (Dollars in thousands) AFS Gross proceeds $ 55,001 $ 169,146 $ 124,823 Gross realized gains 77 558 1,261 Gross realized losses 1,047 1,660 45 Visa Class B Restricted Shares Gross proceeds 427 — — Gross realized gains 427 — — Gross realized losses — — — Total Gross proceeds $ 55,428 $ 169,146 $ 124,823 Gross realized gains 504 558 1,261 Gross realized losses 1,047 1,660 45 |
Amortized Cost and Estimated Fair Value of Securities by Contractual Maturity | 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) Over 1 year through 5 years $ 6,544 $ 6,563 After 5 years through 10 years 28,661 28,581 Over 10 years 150,193 148,350 185,398 183,494 Mortgage-backed securities 178,930 176,244 Total $ 364,328 $ 359,738 |
LOANS RECEIVABLE (Tables)
LOANS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Loans Receivable Tables Abstract | |
Loan Receivable | Loans receivable balances are summarized as follows: December 31, 2018 2017 (Dollars in thousands) Real estate mortgage loans: One-to four-family residential $ 325,560 $ 304,107 Commercial real estate 498,106 453,725 Home equity loans and lines of credit 48,679 49,877 Residential construction 39,533 37,108 Other construction and land 104,645 101,447 Total real estate loans 1,016,523 946,264 Commercial and industrial 54,410 56,939 Consumer 6,842 5,700 Total commercial and consumer 61,252 62,639 Loans receivable, gross 1,077,775 1,008,903 Less: Net deferred loan fees (1,000 ) (1,431 ) Fair value discount (1,048 ) (2,012 ) Hedged loans basis adjustment (See Note 9) 245 — Unamortized premium 333 389 Unamortized discount (236 ) (710 ) Loans receivable, net of deferred fees $ 1,076,069 $ 1,005,139 |
Activity Related to Discount on Purchased Loans | The following table presents the activity related to the discount on individually purchased loans: For the Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Discount on purchased loans, beginning of period $ 710 $ 1,150 $ 1,366 Accretion (474 ) (440 ) (216 ) Discount on purchased loans, end of period $ 236 $ 710 $ 1,150 The following table presents the activity related to the fair value discount on loans from business combinations: For the Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Fair value discount, beginning of period $ 2,012 $ 857 $ 72 Additional discount from acquisitions — 2,479 960 Accretion (964 ) (1,324 ) (175 ) Discount on acquired loans, end of period $ 1,048 $ 2,012 $ 857 |
Aggregate amount of extensions of credit to executive officers and directors | The aggregate principal amounts outstanding to executive officers and directors of the Company made in the ordinary course of business as of and for the years ended December 31 is detailed in the table below: December 31, 2018 2017 Beginning of year $ 8,114 $ 8,222 New loans 208 428 Repayments (950 ) (536 ) End of year $ 7,372 $ 8,114 |
ALLOWANCE FOR LOAN LOSSES (Tabl
ALLOWANCE FOR LOAN LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Allowance For Loan Losses | |
Changes in Allowance for Loan Losses | The following tables present, by portfolio segment, the activity in the allowance for loan losses: Year Ended December 31, 2018 One-to four Commercial Home Equity Residential Other Commercial Consumer Total (Dollars in thousands) Beginning balance $ 4,018 $ 4,364 $ 616 $ 303 $ 1,025 $ 503 $ 58 $ 10,887 Provision (1 ) 674 184 148 219 177 (200 ) 1,201 Charge-offs (124 ) (75 ) (283 ) — (40 ) (84 ) (108 ) (714 ) Recoveries 16 167 43 1 46 12 326 611 Ending balance $ 3,909 $ 5,130 $ 560 $ 452 $ 1,250 $ 608 $ 76 $ 11,985 Year Ended December 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 1,181 503 201 118 318 (53 ) (371 ) 1,897 Charge-offs (93 ) (193 ) (268 ) — (289 ) (68 ) (60 ) (971 ) Recoveries 118 75 6 — 148 25 284 656 Ending balance $ 4,018 $ 4,364 $ 616 $ 303 $ 1,025 $ 503 $ 58 $ 10,887 Year Ended December 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 413 1,016 (486 ) (125 ) (122 ) (85 ) (337 ) 274 Charge-offs (133 ) (431 ) (158 ) — (560 ) (63 ) (201 ) (1,546 ) Recoveries 77 173 224 32 130 144 336 1,116 Ending balance $ 2,812 $ 3,979 $ 677 $ 185 $ 848 $ 599 $ 205 $ 9,305 |
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 recorded investment in loans: December 31, 2018 One-to four Family Residential Commercial Real Estate Home Equity and Lines of Credit Residential Construction Other Construction and Land Commercial Consumer Total (Dollars in thousands) Allowance for loan losses Individually evaluated for impairment $ 79 $ 27 $ — $ — $ 54 $ 7 $ — $ 167 Collectively evaluated for impairment 3,830 5,103 560 452 1,196 601 76 11,818 $ 3,909 $ 5,130 $ 560 $ 452 $ 1,250 $ 608 $ 76 $ 11,985 Loans Receivable Individually evaluated for impairment $ 2,900 $ 6,019 $ 313 $ — $ 1,377 $ 276 $ — $ 10,885 Collectively evaluated for impairment 322,255 490,530 48,512 39,488 103,087 54,367 6,945 1,065,184 $ 325,155 $ 496,549 $ 48,825 $ 39,488 $ 104,464 $ 54,643 $ 6,945 $ 1,076,069 December 31, 2017 One-to four Commercial Home Equity Residential Other Commercial Consumer Total (Dollars in thousands) Allowance for loan losses Individually evaluated for impairment $ 185 $ 56 $ — $ — $ 66 $ 15 $ — $ 322 Collectively evaluated for impairment 3,833 4,308 616 303 959 488 58 10,565 $ 4,018 $ 4,364 $ 616 $ 303 $ 1,025 $ 503 $ 58 $ 10,887 Loans Receivable Individually evaluated for impairment $ 3,873 $ 5,714 $ 313 $ — $ 1,443 $ 291 $ — $ 11,634 Collectively evaluated for impairment 299,111 445,315 49,648 37,144 99,725 56,785 5,777 993,505 $ 302,984 $ 451,029 $ 49,961 $ 37,144 $ 101,168 $ 57,076 $ 5,777 $ 1,005,139 |
Credit Risk Profile by Rating | The following tables present the recorded investment in loans by loan grade: December 31, 2018 Loan Grade One-to-Four Commercial Home Equity Residential Other Commercial Consumer Total (Dollars in thousands) 1 $ — $ 7,569 $ — $ — $ — $ 1,264 $ 7 $ 8,840 2 — 7,860 — — — 20 — 7,880 3 31,623 87,756 5,212 9,365 12,111 15,685 264 162,016 4 121,688 280,630 4,014 18,358 61,646 22,374 245 508,955 5 24,738 88,698 615 3,404 17,630 12,307 5 147,397 6 321 7,867 — 1 1,303 495 — 9,987 7 674 5,725 — — 376 487 — 7,262 $ 179,044 $ 486,105 $ 9,841 $ 31,128 $ 93,066 $ 52,632 $ 521 $ 852,337 Ungraded Loan Exposure: Performing $ 145,470 $ 10,420 $ 38,806 $ 8,360 $ 11,334 $ 2,011 $ 6,424 $ 222,825 Nonperforming 641 24 178 — 64 — — 907 Subtotal $ 146,111 $ 10,444 $ 38,984 $ 8,360 $ 11,398 $ 2,011 $ 6,424 $ 223,732 Total $ 325,155 $ 496,549 $ 48,825 $ 39,488 $ 104,464 $ 54,643 $ 6,945 $ 1,076,069 December 31, 2017 Loan Grade One-to-Four Commercial Home Equity Residential Other Commercial Consumer Total (Dollars in thousands) 1 $ — $ 9,086 $ — $ — $ — $ 1,665 $ 11 $ 10,762 2 1,164 12,360 — — 904 1,272 — 15,700 3 34,593 78,485 5,312 7,262 9,207 15,117 377 150,353 4 99,816 249,103 3,901 16,294 57,065 25,137 523 451,839 5 22,639 87,745 943 3,111 18,806 13,064 8 146,316 6 1,741 8,623 — — 2,055 306 — 12,725 7 2,112 5,371 — — 425 474 — 8,382 $ 162,065 $ 450,773 $ 10,156 $ 26,667 $ 88,462 $ 57,035 $ 919 $ 796,077 Ungraded Loan Exposure: Performing $ 140,013 $ 256 $ 39,685 $ 10,477 $ 12,623 $ 41 $ 4,846 $ 207,941 Nonperforming 906 — 120 — 83 — 12 1,121 Subtotal $ 140,919 $ 256 $ 39,805 $ 10,477 $ 12,706 $ 41 $ 4,858 $ 209,062 Total $ 302,984 $ 451,029 $ 49,961 $ 37,144 $ 101,168 $ 57,076 $ 5,777 $ 1,005,139 |
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. December 31, 2018 30-59 Days 60-89 Days 90 Days Total Current Total (Dollars in thousands) One-to-four family residential $ 3,562 $ 1,317 $ 84 $ 4,963 $ 320,192 $ 325,155 Commercial real estate 2,615 — 1,782 4,397 492,152 496,549 Home equity and lines of credit 400 457 73 930 47,895 48,825 Residential construction — — 1 1 39,487 39,488 Other construction and land 613 32 64 709 103,755 104,464 Commercial 307 25 121 453 54,190 54,643 Consumer 27 4 — 31 6,914 6,945 Total $ 7,524 $ 1,835 $ 2,125 $ 11,484 $ 1,064,585 $ 1,076,069 December 31, 2017 30-59 Days 60-89 Days 90 Days Total Current Total (Dollars in thousands) One-to-four family residential $ 3,941 $ 591 $ 562 $ 5,094 $ 297,890 $ 302,984 Commercial real estate 2,093 308 683 3,084 447,945 451,029 Home equity and lines of credit 308 27 120 455 49,506 49,961 Residential construction 501 — — 501 36,643 37,144 Other construction and land 1,711 21 93 1,825 99,343 101,168 Commercial 488 1 95 584 56,492 57,076 Consumer 27 25 10 62 5,715 5,777 Total $ 9,069 $ 973 $ 1,563 $ 11,605 $ 993,534 $ 1,005,139 |
Summary of Average Impaired Loans | The following table presents investments in loans considered to be impaired and related information on those impaired loans: December 31, 2018 December 31, 2017 Recorded Unpaid Specific Recorded Unpaid Specific (Dollars in thousands) Loans without a valuation allowance One-to four-family residential $ 845 $ 923 $ — $ 2,266 $ 2,376 $ — Commercial real estate 3,835 6,207 — 4,050 6,119 — Home equity and lines of credit 283 283 — 313 428 — Other construction and land 365 366 — 571 678 — $ 5,328 $ 7,779 $ — $ 7,200 $ 9,601 $ — Loans with a valuation allowance One-to four-family residential $ 2,055 $ 2,055 $ 79 $ 1,607 $ 1,607 $ 185 Commercial real estate 2,184 2,184 27 1,664 1,664 56 Home equity and lines of credit 30 30 — — — — Other construction and land 1,012 1,012 54 872 872 66 Commercial 276 276 7 291 291 15 $ 5,557 $ 5,557 $ 167 $ 4,434 $ 4,434 $ 322 Total One-to four-family residential $ 2,900 $ 2,978 $ 79 $ 3,873 $ 3,983 $ 185 Commercial real estate 6,019 8,391 27 5,714 7,783 56 Home equity and lines of credit 313 313 — 313 428 — Other construction and land 1,377 1,378 54 1,443 1,550 66 Commercial 276 276 7 291 291 15 $ 10,885 $ 13,336 $ 167 $ 11,634 $ 14,035 $ 322 |
Financing Receivables on Nonaccrual Status | The following table presents average impaired loans and interest income recognized on those impaired loans, by class segment, for the periods indicated: For the Year Ended December 31, 2018 2017 2016 Average Interest Average Interest Average Interest (Dollars in thousands) Loans without a valuation allowance One-to-four family residential $ 940 $ 71 $ 2,415 $ 116 $ 2,758 $ 117 Commercial real estate 6,250 136 6,188 128 7,834 116 Home equity and lines of credit 283 18 428 55 328 10 Other construction and land 373 22 686 20 923 27 $ 7,846 $ 247 $ 9,717 $ 319 $ 11,843 $ 270 Loans with a valuation allowance One-to-four family residential $ 2,145 $ 72 $ 1,642 $ 75 $ 1,162 $ 48 Commercial real estate 2,252 94 1,685 87 2,098 82 Home equity and lines of credit 145 — — — 100 4 Other construction and land 1,169 47 908 38 1,027 37 Commercial 283 23 299 21 312 19 $ 5,994 $ 236 $ 4,534 $ 221 $ 4,699 $ 190 Total One-to-four family residential $ 3,085 $ 143 $ 4,057 $ 191 $ 3,920 $ 165 Commercial real estate 8,502 230 7,873 215 9,932 198 Home equity and lines of credit 428 18 428 55 428 14 Other construction and land 1,542 69 1,594 58 1,950 64 Commercial 283 23 299 21 312 19 $ 13,840 $ 483 $ 14,251 $ 540 $ 16,542 $ 460 |
Schedule of Nonperforming Loans | The following table summarizes the balances of nonperforming loans. Certain loans classified as Troubled Debt Restructurings (“TDRs”) and impaired loans may be on non-accrual status even though they are not contractually delinquent. December 31, 2018 2017 (Dollars in thousands) One-to-four family residential $ 1,037 $ 1,421 Commercial real estate 3,266 2,666 Home equity loans and lines of credit 178 120 Other construction and land 256 464 Commercial 120 95 Consumer — 12 Non-performing loans $ 4,857 $ 4,778 |
Summary of TDR Loans | The following tables summarize TDRs as of the dates indicated: December 31, 2018 Performing Nonperforming Total TDRs TDRs TDRs (Dollars in thousands) One-to-four family residential $ 2,154 $ 361 $ 2,515 Commercial real estate 3,690 1,462 5,152 Home equity and lines of credit 283 30 313 Other construction and land 1,185 192 1,377 Commercial 276 — 276 $ 7,588 $ 2,045 $ 9,633 December 31, 2017 Performing Nonperforming Total TDRs TDRs TDRs (Dollars in thousands) One-to-four family residential $ 3,452 $ — $ 3,452 Commercial real estate 3,805 1,438 5,243 Home equity and lines of credit 313 — 313 Other construction and land 1,091 370 1,461 Commercial 291 — 291 $ 8,952 $ 1,808 $ 10,760 Loan modifications that were deemed TDRs at the time of the modification during the period presented are summarized in the table below: For the Year Ended (Dollars in thousands) Number of Recorded Extended payment terms Commercial real estate 1 $ 206 1 $ 206 For the Year Ended December 31, 2017 (Dollars in thousands) Number of Pre-modification Post-modification Forgiveness of principal: Other construction and land 1 $ 242 $ 166 1 $ 242 $ 166 There were no TDRs that defaulted during the years ending December 31, 2018 or December 31, 2017 and which were modified as TDRs within the previous 12 months. |
CONCENTRATIONS OF CREDIT RISK (
CONCENTRATIONS OF CREDIT RISK (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Concentrations Of Credit Risk | |
Concentration of Company loan | The Company’s loans were concentrated in the following categories: December 31, 2018 2017 Real estate loans: One- to four-family residential 30.2 % 30.1 % Commercial 46.2 45.0 Home equity loans and lines of credit 4.5 4.9 Residential construction 3.7 3.7 Other construction and land 9.7 10.1 Commercial 5.1 5.6 Consumer 0.6 0.6 Total loans, gross 100 % 100 % |
FIXED ASSETS (Tables)
FIXED ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Fixed Assets Tables Abstract | |
Schedule of Fixed Assets | Fixed assets are summarized as follows: December 31, 2018 2017 (Dollars in thousands) Land and improvements $ 10,554 $ 10,054 Buildings 24,947 22,452 Furniture, fixtures, and equipment 9,386 8,767 Construction in process 93 52 Total fixed assets $ 44,980 $ 41,325 Less accumulated depreciation (18,595 ) (17,212 ) Fixed assets, net $ 26,385 $ 24,113 |
Schedule of Future Minimum Rental Payments for Operating Leases | Following is a schedule of approximate annual future minimum lease payments under operating leases that have initial or remaining lease terms in excess of one year (in thousands): 2019 $ 155 2020 69 2021 53 2022 18 Total minimum lease commitments $ 295 |
REAL ESTATE OWNED (Tables)
REAL ESTATE OWNED (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Real Estate Owned Tables Abstract | |
Summary of Real Estate Owned and Changes in the Valuation Allowances | The following tables summarizes real estate owned and changes in the valuation allowance for real estate owned as of and for the periods indicated: As of December 31, (Dollars in thousands) 2018 2017 Real estate owned, gross $ 3,246 $ 3,585 Less: Valuation allowance 753 1,017 Real estate owned, net $ 2,493 $ 2,568 Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Valuation allowance, beginning $ 1,017 $ 1,424 $ 1,372 Provision charged to expense 98 292 655 Reduction due to disposal (362 ) (699 ) (603 ) Valuation allowance, ending $ 753 $ 1,017 $ 1,424 |
BANK OWNED LIFE INSURANCE (BO_2
BANK OWNED LIFE INSURANCE (BOLI) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Bank Owned Life Insurance Boli | |
Schedule of composition of Bank Owned Life Insurance | The following table summarizes the composition of our BOLI: December 31, 2018 2017 (Dollars in thousands) Separate account $ 2,535 $ 2,504 General account 19,004 18,491 Hybrid 11,347 11,155 Total $ 32,886 $ 32,150 |
LOAN SERVICING (Tables)
LOAN SERVICING (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Loan Servicing | |
Summary of Unpaid Principal Mortgage and Other Loans | The unpaid principal balances of mortgage and SBA loans serviced for others is detailed below. December 31, 2018 2017 2016 (Dollars in thousands) $ 284,091 $ 276,782 $ 264,264 |
Loan Servicing Rights | The following summarizes the activity in the balance of loan servicing rights: December 31, 2018 2017 2016 (Dollars in thousands) Loan servicing rights, beginning of period $ 2,756 $ 2,603 $ 2,344 Capitalization from loans sold 433 618 604 Fair value adjustment (352 ) (465 ) (345 ) Loan servicing rights, end of period $ 2,837 $ 2,756 $ 2,603 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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: Years Ended December 31, 2018 2017 Dollars in thousands Balance at beginning of period $ 23,903 $ 2,065 Additions: Prior acquisitions measurement period adjustments — 63 Goodwill from current year acquisitions — 21,775 Balance at end of period $ 23,903 $ 23,903 |
Schedule of gross carrying amounts and accumulated amortization of core deposit intangibles | The following is a summary of gross carrying amounts and accumulated amortization of core deposit intangibles: Years Ended December 31, 2018 2017 Dollars in thousands Gross balance at beginning of period $ 4,840 $ 1,120 Additions from acquisitions — 3,720 Gross balance at end of period 4,840 4,840 Less accumulated amortization (1,263 ) (571 ) Core deposit intangible, net $ 3,577 $ 4,269 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Financial Instruments And Hedging Activities | |
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 sheets (in thousands). Derivative Assets (1) Derivative Liabilities (1) December 31, December 31, 2018 2017 2018 2017 Derivatives designated as hedging instruments: Interest rate swaps $ 354 $ 561 $ 462 $ — Total $ 354 $ 561 $ 462 $ — Derivatives not designated as hedging instruments: Mortgage derivatives $ 34 $ 73 $ 22 $ — Total $ 34 $ 73 $ 22 $ — (1) All derivative assets are located in “Other assets” on the consolidated balance sheets and all derivative liabilities are located in “Other liabilities” on the consolidated balance sheets. |
Schedule of Cash Flow Hedges Included in Statement of Income | The table below presents the effect of fair value and cash flow hedge accounting on the consolidated statements of income: Years Ended December 31, 2018 2017 2016 (dollars in thousands) Interest Interest Interest Interest Interest Interest Total amounts of income and expense line items presented in the consolidated statements of income $ 62,614 $ 13,289 $ 50,529 $ 7,684 $ 40,520 $ 6,032 Amounts related to fair value hedging relationships Interest rate swaps: Hedged items 245 — — — — — Derivatives designated as hedging instruments (313 ) — — — — — Amounts related to cash flow hedging relationships Interest rate swaps: Amount reclassified from accumulated other comprehensive loss into income — (431 ) — (14 ) — 32 |
Schedule of Fair value Hedges recorded on the balance sheet related to cumulative basis adjustments | As of December 31, 2018, the following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges: (dollars in thousands) Carrying amount of the Cumulative amount of fair Line item in the balance sheet in which the hedged item is included December 31, December 31, Loans receivable (1) $ 100,519 $ 245 |
Schedule of Structure of the Swap Agreements | The structures of the swap agreements designated as cash flow hedges are 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 Junior Subordinated Debt Cash Flow Hedge $ 14,000 Pay 3.02%/Receive 3 month LIBOR 3 yrs |
Schedule of derivatives in cash flow hedging | The table below presents the effect of the Company’s derivatives in cash flow hedging relationships for the periods presented (dollars in thousands): Years Ended December 31, Interest rate swaps Location 2018 2017 2016 Amounts recognized in AOCI on derivatives OCI $ 2 $ 99 $ 444 Amounts reclassified from AOCI into income Interest expense (431 ) (14 ) 32 Amounts recognized in consolidated statement of comprehensive income $ (429 ) $ 85 $ 476 |
Schedule of Company's IRLCs and forward commitments for the future delivery of residential mortgage loans | At December 31, 2018 and December 31, 2017, the Company had the following IRLCs and forward commitments for the future delivery of residential mortgage loans. As of December 31, (Dollars in thousands) 2018 2017 Mortgage derivatives Interest rate lock commitments $ 1,627 $ 5,705 Forward sales commitment 3,500 5,705 The table below presents the effect of the Company’s derivatives not designated as hedging instruments for the periods presented: Years Ended December 31, Interest rate products Location 2018 2017 2016 (Dollars in thousands) Amount of gain (loss) recognized in income on forward commitments Noninterest income $ (55 ) $ 9 $ 3 Amount of gain (loss) recognized in income on interest rate lock commitments Noninterest income (12 ) 4 11 Amount of gain (loss) recognized in income on derivatives not designated as hedging instruments $ (67 ) $ 13 $ 14 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Deposits Tables Abstract | |
Summary of Deposit Balances and Interest Expenses | The following table summarizes deposit balances and the related interest expense by type of deposit: As of and for the Year Ended December 31, 2018 2017 2016 (Dollars in thousands) Balance Interest Balance Interest Balance Interest Noninterest-bearing demand $ 184,404 $ — $ 179,457 $ — $ 139,136 $ — Interest-bearing demand 209,085 374 226,718 228 122,271 160 Money market 356,086 2,637 308,767 1,022 239,387 770 Savings 50,716 59 50,500 53 40,014 49 Time deposits 420,949 5,048 396,735 3,171 289,205 2,985 $ 1,221,240 $ 8,118 $ 1,162,177 $ 4,474 $ 830,013 $ 3,964 |
Summary of wholesale deposits included in the money market and time deposits amounts | The following table indicates wholesale deposits included in the money market and time deposits amounts above: December 31, (Dollars in thousands) 2018 2017 Wholesale money market $ 5,030 $ 2,020 Wholesale time deposits 70,978 39,105 $ 76,008 $ 41,125 |
Schedule Of Certificates Of Deposit, By Contractual Maturity | Contractual maturities of time deposit accounts are summarized as follows: (Dollars in thousands) December 31, 2019 $ 226,307 2020 54,539 2021 66,371 2022 22,047 2023 22,435 Thereafter 29,250 $ 420,949 |
Schedule of activity related to the fair value premium on acquired time deposits | The following table presents the activity related to the fair value premium on acquired time deposits: For the Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Time deposit premium, beginning of period $ 1,102 $ 420 $ 30 Additional premium for acquisitions — 1,534 648 Accretion (945 ) (852 ) (258 ) Time deposit premium, end of period $ 157 $ 1,102 $ 420 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Borrowings | |
Schedule of Outstanding FHLB advances | The following tables summarize the outstanding FHLB advances as of the dates indicated: December 31, 2018 December 31, 2017 Balance Type Rate Maturity Balance Type Rate Maturity (Dollars in thousands) (Dollars in thousands) $ 5,000 Fixed Rate 2.26 % 1/7/2019 $ 5,000 Fixed Rate 1.29 % 1/5/2018 25,000 Fixed Rate 2.33 % 2/7/2019 20,000 Fixed Rate 1.37 % 2/8/2018 20,000 Fixed Rate 2.49 % 2/8/2019 20,500 Adjustable rate 1.48 % 5/24/2018 5,000 Fixed Rate 2.34 % 4/3/2019 15,000 Adjustable rate 1.60 % 3/29/2018 20,000 Fixed Rate 2.54 % 4/5/2019 5,000 Fixed Rate 1.29 % 4/2/2018 1,000 Fixed Rate 1.62 % 5/13/2019 20,000 Fixed Rate 1.37 % 4/16/2018 25,000 Fixed Rate 2.67 % 5/28/2019 25,000 Fixed Rate 1.36 % 5/7/2018 2,000 Fixed Rate 1.53 % 6/12/2019 50,000 Fixed Rate 1.59 % 5/24/2018 5,000 Fixed Rate 2.54 % 7/2/2019 5,000 Fixed Rate 1.26 % 6/5/2018 25,000 Fixed Rate 2.82 % 8/26/2019 5,000 Fixed Rate 1.39 % 6/6/2018 10,000 Fixed Rate 2.68 % 9/30/2019 10,000 Fixed Rate 0.84 % 6/29/2018 10,500 Fixed Rate 2.79 % 11/26/2019 5,000 Fixed Rate 1.40 % 7/2/2018 10,000 Fixed Rate 2.12 % 12/30/2019 5,000 Fixed Rate 1.38 % 7/2/2018 5,000 Fixed Rate 2.12 % 12/30/2019 10,000 Fixed Rate 1.52 % 9/28/2018 5,000 Fixed Rate 2.67 % 1/2/2020 5,000 Fixed Rate 1.51 % 12/31/2018 15,000 Fixed Rate 2.88 % 3/30/2020 1,000 Fixed Rate 1.62 % 5/13/2019 10,000 Fixed Rate 2.89 % 5/26/2020 2,000 Fixed Rate 1.53 % 6/12/2019 10,000 Fixed Rate 2.68 % 6/29/2020 10,000 Fixed Rate 2.12 % 12/30/2019 5,000 Fixed Rate 2.72 % 12/31/2020 5,000 Fixed Rate 2.12 % 12/30/2019 $ 213,500 2.58 % $ 223,500 1.48 % |
Scheduled maturities of FHLB advances and respective weighted average rates | The scheduled annual maturities of FHLB advances and respective weighted average rates are as follows: December 31, 2018 Year Balance Weighted (Dollars in thousands) 2019 168,500 2.52 % 2020 45,000 2.80 % $ 213,500 2.58 % |
POST-EMPLOYMENT BENEFITS (Table
POST-EMPLOYMENT BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Post-employment Benefits | |
Schedule of liabilities for each plan | The following table summarizes the liabilities for each plan as of the dates indicated: December 31, 2018 2017 (Dollars in thousands) SERP $ 4,116 $ 4,288 CAP Equity 4,148 4,708 Director Consultation 177 246 Life Insurance 864 932 $ 9,305 $ 10,174 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock option activity | The table below presents restricted stock unit and stock option activity and related information: Restricted Stock Units Stock Options (Dollars in thousands, except per share data) Shares Weighted Options Weighted Average Weighted Aggregate December 31, 2016 145,580 $ 18.36 407,200 $ 18.41 Granted 18,600 25.76 40,900 25.92 Vested/Exercised (33,780 ) 18.39 (3,600 ) 18.55 Forfeited (5,200 ) 18.55 (11,200 ) 18.55 December 31, 2017 125,200 19.44 433,300 19.11 Granted 26,500 27.42 57,000 27.43 Vested/Exercised (36,480 ) 19.13 (11,100 ) 18.49 Forfeited (3,060 ) 18.55 (7,140 ) 18.55 December 31, 2018 112,160 21.45 472,060 20.14 7.46 $ 881 Vested/Exercisable at December 31, 2018 — $ — 218,660 $ 18.72 7.04 $ 486 The following is a summary of stock options outstanding at December 31, 2018: Options Outstanding Options Exercisable Shares Range Wtd Ave Ave Shares Wtd Ave Ave 5,000 $ 16.00-17.00 $ 16.75 7.14 2,000 $ 16.75 7.14 40,500 17.01-18.00 17.45 7.41 16,200 17.45 7.41 328,660 18.01-18.55 18.54 6.95 192,280 18.54 6.94 29,000 18.56-25.00 24.02 8.55 5,800 24.02 8.55 68,900 25.01-30.55 27.97 9.48 2,380 30.55 8.98 472,060 20.14 7.46 218,660 18.72 7.04 |
Schedule of fair value of options granted Black-Scholes model | The following table illustrates the assumptions for the Black-Scholes model used in determining the fair value of options granted: Year Ended December 31, 2018 2017 Fair value per option $ 6.29 $ 5.30 Expected life (years) 6.5 years 6.5 years Expected stock price volatility 13.91 % 13.40 % Expected dividend yield 0.00 % 0.00 % Risk-free interest rate 2.82 % 2.19 % Expected forfeiture rate 0.00 % 0.00 % |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Income Taxes Tables Abstract | |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense is summarized as follows: For the Year Ended December 31, 2018 2017 2016 (Dollars in thousands) Current Federal $ 469 $ 365 $ 549 State 323 66 24 Deferred Federal 2,195 6,729 2,370 State 140 368 552 $ 3,127 $ 7,528 $ 3,495 |
Schedule of Effective Income Tax Rate Reconciliation | The differences between actual income tax expense and the amount computed by applying the federal statutory income tax rate of 21% in 2018 and 35% in 2017 and 2016 to income before income taxes for the periods indicated is reconciled as follows: For the Year Ended December 31, 2018 2017 2016 (Dollars in thousands) Computed income tax expense $ 3,579 $ 3,537 $ 3,455 State income tax, net of federal benefit 365 282 218 Nontaxable municipal security income (622 ) (1,036 ) (544 ) Nontaxable BOLI income (183 ) (243 ) (107 ) Change in federal and state rates applied to deferreds 13 4,871 353 Low income housing tax credit investments (76 ) (44 ) — Other 51 161 120 Actual income tax expense $ 3,127 $ 7,528 $ 3,495 Effective tax rate 18.3 % 74.5 % 35.4 % |
Schedule of Deferred Tax Assets and Liabilities | The components of net deferred taxes as of the periods indicated are summarized as follows: As of December 31, 2018 2017 (Dollars in thousands) Deferred tax assets: Allowance for loan losses $ 2,703 $ 2,356 Deferred compensation and post-employment benefits 1,854 1,993 Non-accrual interest 245 204 Valuation reserve for other real estate 191 346 North Carolina NOL carryover 293 475 Federal NOL carryover 1,231 3,507 AMT credit carryover 316 645 General federal business credit carryover 691 — Unrealized losses on securities 1,061 149 Loan basis differences 50 77 Deposit premium — 104 Fixed assets 123 63 Core deposit intangible 129 52 Investment in partnerships — 9 Other 1,207 1,000 Total deferred tax assets 10,094 10,980 Deferred tax liabilities: Loan servicing rights 653 620 Goodwill 495 126 Core deposit intangible 74 89 Deferred loan costs 1,001 757 Prepaid expenses 14 31 Unrealized gains on securities 105 377 Derivative instruments 29 128 Investment in partnerships 155 — Other 17 21 Total deferred tax liabilities 2,543 2,149 Net deferred tax asset $ 7,551 $ 8,831 |
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 December 31, 2018 (Dollars in thousands) Amount Expiration Dates Federal $ 5,857 2031-2037 North Carolina $ 14,969 2026-2029 Federal general business credit $ 691 2037-2038 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Earnings Per Share Tables Abstract | |
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: For the Year Ended December 31, (Dollars in thousands, except share amounts) 2018 2017 Numerator: Net income $ 13,915 $ 2,579 Denominator: Weighted-average common shares outstanding - basic 6,892,207 6,561,699 Effect of dilutive stock options 72,783 54,248 Effect of dilutive restricted stock units 42,935 42,667 Weighted-average common shares outstanding - diluted 7,007,925 6,658,614 Earnings per share - basic $ 2.02 $ 0.39 Earnings per share - diluted $ 1.99 $ 0.39 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Income Loss | |
Schedule of Accumulated other comprehensive income (loss) | The following table summarizes the components of accumulated other comprehensive income (loss) and changes in those components as of and for the years ended December 31: (Dollars in thousands) Available for Held to Maturity Deferred Tax Cash Flow Total Balance, December 31, 2015 $ (594 ) $ (563 ) $ (579 ) $ — $ (1,736 ) Change in deferred tax valuation allowance attributable to net unrealized losses on investment securities — — 377 — 377 Change in unrealized holding gains/losses on securities available for sale (6,652 ) — — — (6,652 ) Reclassification adjustment for net securities gains included in net income (1,216 ) — — — (1,216 ) Amortization of unrealized losses on securities transferred to held to maturity — 578 — — 578 Reduction in unrealized losses related to held to maturity securities transferred to available-for-sale — 325 — — 325 Change in unrealized holding gains/losses on cash flow hedge — — — 444 444 Reclassification adjustment for cash flow hedge effectiveness — — — 32 32 Income tax expense (benefit) 2,908 (340 ) — (176 ) 2,392 Balance, December 31, 2016 $ (5,554 ) $ — $ (202 ) $ 300 $ (5,456 ) Change in deferred tax valuation allowance attributable to net unrealized losses on investment securities — — 202 — 202 Change in unrealized holding gains/losses on securities available for sale 6,347 — — — 6,347 Reclassification adjustment for net securities losses included in net income 1,102 — — — 1,102 Reclassification adjustment for other than temporary impairment of securities available for sale 757 — — — 757 Change in unrealized holding gains on cash flow hedge — — — 99 99 Reclassification adjustment for cash flow hedge effectiveness — (14 ) (14 ) Income tax expense (benefit) (3,107 ) — — 47 (3,060 ) Balance, December 31, 2017 $ (455 ) $ — $ — $ 432 $ (23 ) Change in unrealized holding gains/losses on securities available for sale (4,956 ) — — — (4,956 ) Reclassification adjustment for net securities losses included in net income 970 — — — 970 Change in unrealized holding gains on cash flow hedge — — — 2 2 Reclassification adjustment for cash flow hedge effectiveness — (431 ) (431 ) Cumulative effect of change in accounting principle 9 — — — 9 Income tax expense (benefit) 904 — — 101 1,005 Balance, December 31, 2018 $ (3,528 ) $ — $ — $ 104 $ (3,424 ) |
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 Operations affected by amounts reclassified from accumulated other comprehensive income (loss): Year Ended December 31, Income Statement (Dollars in thousands) 2018 2017 2016 Line Item Affected Available-for-sale securities Gains(losses) recognized $ (970 ) $ (1,102 ) $ 1,216 Gain (loss) on sale of investments, net Other than temporary impairment — (757 ) Other than temporary impairment on investments Income tax effect 204 678 (449 ) Income tax expense Reclassified out of AOCI, net of tax (766 ) (1,181 ) 767 Net income Held-to-maturity securities Amortization of unrealized losses — — (578 ) Interest income - taxable securities Increase related to transfer from AFS — — — Interest income - taxable securities Reduction related to transfer to AFS — — (325 ) Interest income - taxable securities Income tax effect — — 340 Income tax expense Reclassified out of AOCI, net of tax — — (563 ) Net income Cash flow hedge Interest expense (257 ) (20 ) (16 ) Interest expense - FHLB advances Interest expense (174 ) 34 (16 ) Interest expense - Junior subordinated notes Income tax effect 91 5 12 Income tax expense Reclassified out of AOCI, net of tax (340 ) 19 (20 ) Net income Deferred tax valuation allowance Recognition of reversal of valuation allowance — 202 377 Income tax expense Total reclassified out of AOCI, net of tax $ (1,106 ) $ (960 ) $ 561 Net income |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Regulatory Matters | |
Schedule of actual and required capital amounts and ratios | Following are the required and actual capital amounts and ratios for the Bank: Actual For Capital To Be Well- (Dollars in thousands) Amount Ratio Amount Ratio (1) Amount Ratio As of December 31, 2018: Tier 1 Leverage Capital $ 152,137 9.42 % $ 64,589 >4.0% $ 80,737 >5% Common Equity Tier 1 Capital $ 152,137 12.92 % $ 75,046 >6.375% $ 76,517 >6.5% Tier 1 Risk-based Capital $ 152,137 12.92 % $ 92,703 >7.875% $ 94,175 >8% Total Risk-based Capital $ 164,222 13.95 % $ 116,247 >9.875% $ 117,719 >10% As of December 31, 2017: Tier 1 Leverage Capital $ 136,280 8.79 % $ 61,994 >4.0% $ 77,492 >5% Common Equity Tier 1 Capital $ 136,280 11.92 % $ 65,729 >5.75% $ 74,303 >6.5% Tier 1 Risk-based Capital $ 136,280 11.92 % $ 82,876 >7.25% $ 91,450 >8% Total Risk-based Capital $ 147,266 12.88 % $ 105,739 >9.25% $ 114,312 >10% (1) – As of December 31, 2018, includes capital conservation buffer of 1.875%. On a fully phased in basis, effective January 1, 2019, under Basel III, minimum capital ratios to be considered “adequately capitalized” including the capital conservation buffer of 2.5% will be as follows: Tier 1 Leverage Capital – 4.0%; Common Equity Tier 1 Capital – 7.0%; Tier 1 Risk-based Capital – 8.5%; and Total Risk-based Capital – 10.5%. Following are the required and actual capital amounts and ratios for the Company: Actual For Capital Adequacy (Dollars in thousands) Amount Ratio Amount Ratio (1) As of December 31, 2018: Tier I Leverage Capital $ 151,629 9.38 % $ 64,629 >4 % Common Equity Tier 1 Capital $ 137,196 11.65 % $ 75,106 >6.375 % Tier I Risk-based Capital $ 151,629 12.87 % $ 92,777 >7.875 % Total Risk Based Capital $ 163,714 13.90 % $ 116,340 >9.875 % As of December 31, 2017: Tier I Leverage Capital $ 134,470 8.68 % $ 61,927 >4.0 % Common Equity Tier 1 Capital $ 120,861 10.57 % $ 65,775 >5.75 % Tier I Risk-based Capital $ 134,470 11.76 % $ 82,934 >7.25 % Total Risk Based Capital $ 145,457 12.72 % $ 105,812 >9.25 % (1) – As of December 31, 2018, includes capital conservation buffer of 1.875%. On a fully phased in basis, effective January 1, 2019, under Basel III, minimum capital ratios to be considered “adequately capitalized” including the capital conservation buffer of 2.5% will be as follows: Tier 1 Leverage Capital – 4.0%; Common Equity Tier 1 Capital – 7.0%; Tier 1 Risk-based Capital – 8.5%; and Total Risk-based Capital – 10.5%. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies | |
Schedule of commitments to fund lines of credit | The following summarizes the Company’s approximate commitments to extend credit: December 31, (Dollars in Lines of credit $ 179,210 Standby letters of credit 964 $ 180,174 |
Schedule of Outstanding commitments to originate mortgage loans | The Company had outstanding commitments to originate loans as follows: December 31, 2018 Amount Range of Rates (Dollar in thousands) Fixed $ 19,758 4.50% to 7.99% Variable 7,338 4.74% to 8.00% $ 27,096 |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures | |
Summary of assets and liabilities measured at fair value on a recurring basis | The following tables present financial assets and financial liabilities measured at fair value on a recurring basis at the dates indicated, segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value: December 31, 2018 Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: Equity securities $ 6,178 $ — $ — $ 6,178 Securities available for sale: U.S. Treasury & Government Agencies 4,949 29,041 — 33,990 Municipal Securities — 114,402 — 114,402 Mortgage-backed Securities - Guaranteed — 85,184 — 85,184 Collateralized Mortgage Obligations - Guaranteed — 21,889 — 21,889 Collateralized Mortgage Obligations - Non Guaranteed — 69,171 — 69,171 Collateralized Loan Obligations — 15,077 15,077 Corporate bonds — 19,532 493 20,025 Total securities available for sale 4,949 354,296 493 359,738 Mortgage loans held for sale — — 2,431 2,431 Loan servicing rights — — 2,837 2,837 Interest rate swaps — 354 — 354 Mortgage derivatives — — 34 34 Total recurring assets at fair value $ 11,127 $ 354,650 $ 5,795 $ 371,572 Liabilities: Interest rate swaps $ — $ 462 $ — $ 462 Mortgage derivatives — — 22 22 Total recurring liabilities at fair value $ — $ 462 $ 22 $ 484 December 31, 2017 Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets Equity securities $ 6,095 $ — $ — $ 6,095 Securities available for sale: U.S. Treasury & Government Agencies 2,496 18,027 — 20,523 Municipal Securities — 93,859 — 93,859 Mortgage-backed Securities - Guaranteed — 128,039 — 128,039 Collateralized Mortgage Obligations - Guaranteed — 10,302 — 10,302 Collateralized Mortgage Obligations - Non Guaranteed — 64,693 — 64,693 Collateralized Loan Obligations 5,539 5,539 Corporate bonds — 18,799 492 19,291 Mutual funds 617 — — 617 Total securities available for sale 3,113 339,258 492 342,863 Loan servicing rights — — 2,756 2,756 Interest rate swaps — 561 — 561 Mortgage derivatives — — 73 73 Total assets $ 9,208 $ 339,819 $ 3,321 $ 352,348 |
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: Years Ended December 31, 2018 2017 (Dollars in thousands) Balance at beginning of period $ 3,321 $ 4,807 AFS securities Fair value adjustment 1 1 Transfer to Level 2 — (1,087 ) Sold — (566 ) Mortgage loans held for sale 2,431 — Loan servicing right activity, included in servicing income, net Capitalization from loans sold 433 618 Fair value adjustment (352 ) (465 ) Mortgage derivative gains(losses) included in other income (61 ) 13 Balance at end of period $ 5,773 $ 3,321 |
Summary of assets and liabilities measured at a fair value on a nonrecurring basis | The following table presents nonfinancial assets measured at fair value on a nonrecurring basis at the dates indicated, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: December 31, 2018 Level 1 Level 2 Level 3 Total (Dollars in thousands) Collateral dependent impaired loans: One-to four family residential $ — $ — $ 845 $ 845 Commercial real estate — — 3,835 3,835 Home equity loans and lines of credit — — 283 283 Other construction and land — — 365 365 Real estate owned: One-to-four family residential — — 228 228 Commercial real estate — — 949 949 Other construction and land — — 1,316 1,316 Total assets $ — $ — $ 7,821 $ 7,821 December 31, 2017 Level 1 Level 2 Level 3 Total (Dollars in thousands) Collateral dependent impaired loans: One-to-four family residential $ — $ — $ 2,266 $ 2,266 Commercial real estate — — 4,050 4,050 Home equity loans and lines of credit — — 313 313 Other construction and land — — 571 571 Real estate owned: One-to-four family residential — — 288 288 Commercial real estate — — 544 544 Other construction and land — — 1,736 1,736 Total assets $ — $ — $ 9,768 $ 9,768 |
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 December 31, 2018. Valuation Technique Unobservable Input General Impaired loans Discounted Appraisals Collateral discounts and estimated selling cost 0% - 30 % Real estate owned Discounted Appraisals Collateral discounts and estimated selling cost 0% - 30 % Corporate bonds Discounted Cash Flows Recent trade pricing 0% -10 % Loan servicing rights Discounted Cash Flows Prepayment speed 8% - 16 % Discount rate 10% - 14 % Mortgage loans held for sale External pricing model Recent trade pricing 99% - 101 % Mortgage derivatives External pricing model Pull-through rate 78%-100 % SBIC Indicative value provided by fund Current operations and financial condition N/A |
Schedule of carrying amount and estimated fair value of the Company's financial instruments | The following table includes the estimated fair value of the Company’s financial assets and financial liabilities at the dates indicated: Fair Value Measurements at December 31, 2018 Carrying (Dollars in thousands) Amount Total Level 1 Level 2 Level 3 Assets: Cash and equivalents $ 69,119 $ 69,119 $ 69,119 $ — $ — Equity securities 6,178 6,178 6,178 — — Securities available for sale 359,739 359,739 4,949 354,297 493 Loans held for sale 7,570 8,114 — 5,683 2,431 Loans receivable, net 1,076,069 1,046,136 — — 1,046,136 Other investments, at cost 12,039 12,039 — 12,039 — Accrued interest receivable 6,443 6,443 — 6,443 — BOLI 32,886 32,886 — 32,886 — Loan servicing rights 2,837 2,837 — — 2,837 Mortgage derivatives 34 34 — — 34 Interest rate swaps 354 354 — 354 — SBIC investments 3,839 3,839 — — 3,839 Liabilities: Demand deposits $ 800,291 $ 800,291 $ — $ 800,291 $ — Time deposits 420,949 424,054 — — 424,054 Federal Home Loan Bank advances 213,500 213,513 — 213,513 — Junior subordinated debentures 14,433 12,440 — 12,440 — Other borrowings 9,299 9,253 — 9,253 — Accrued interest payable 1,647 1,647 — 1,647 — Mortgage derivatives 22 22 — — 22 Interest rate swaps 462 462 — 462 — Fair Value Measurements at December 31, 2017 Carrying (Dollars in thousands) Amount Total Level 1 Level 2 Level 3 Assets: Cash and equivalents $ 109,467 $ 109,467 $ 109,467 $ — $ — Equity securities 6,095 6,095 6,095 — — Securities available for sale 342,863 342,863 3,113 339,258 492 Loans held for sale 3,845 4,211 — 4,211 — Loans receivable, net 1,005,139 992,993 — — 992,993 Other investments, at cost 12,386 12,386 — 12,386 — Accrued interest receivable 5,405 5,405 — 5,405 — BOLI 32,150 32,150 — 32,150 — Loan servicing rights 2,756 2,756 — — 2,756 Mortgage derivatives 73 73 — — 73 Interest rate swaps 561 561 — 561 — SBIC investments 3,491 3,491 — — 3,491 Liabilities: Demand deposits $ 765,442 $ 765,442 $ — $ 765,442 $ — Time deposits 396,735 390,806 — — 390,806 FHLB advances 223,500 223,627 — 223,627 — Junior subordinated debentures 14,433 14,433 — 14,433 — Other borrowings 8,623 8,620 — 8,620 — Accrued interest payable 935 935 — 935 — |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Schedule of noninterest income, segregated by revenue streams in-scope and out-of-scope of ASC Topic 606 | The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of ASC Topic 606, for the years ended December 31, 2018, 2017, and 2016. For the years ended December 31, (dollars in thousands) 2018 2017 2016 Noninterest income In-scope of Topic 606: Service charges on deposit accounts $ 1,673 $ 1,672 $ 1,537 Interchange fees 1,102 913 732 Other 1,168 726 450 Noninterest income (in-scope of Topic 606) 3,943 3,311 2,719 Noninterest income (out-of-scope of Topic 606) 2,047 1,695 4,352 Total noninterest income $ 5,990 $ 5,006 $ 7,071 |
SHARE REPURCHASES (Tables)
SHARE REPURCHASES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Schedule of Share Repurchase Activity | The following table summarizes share repurchase activity through December 31, 2018 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 April 1, 2017 to June 30, 2017 — $ — — 209,750 July 1, 2017 to September 30, 2017 — $ — — 209,750 October 1, 2017 to December 31, 2017 — $ — — 209,750 January 1, 2018 to December 31, 2018 Total as of December 31, 2018 13,000 $ 23.12 13,000 209,750 |
PARENT COMPANY FINANCIAL INFO_2
PARENT COMPANY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Parent Company Financial Information | |
Schedule of Condensed Balance Sheet | Condensed Balance Sheets December 31, 2018 2017 (Dollars in thousands) Assets Cash $ 4,382 $ 3,244 Equity investment in subsidiary 177,709 167,252 Equity investment in trust 433 433 Other assets 562 624 Total assets $ 183,086 $ 171,553 Liabilities and Shareholders’ Equity Junior subordinated debentures $ 14,433 $ 14,433 Other borrowings 5,000 5,000 Other liabilities 781 807 Shareholders’ equity 162,872 151,313 Total liabilities and shareholders’ equity $ 183,086 $ 171,553 |
Schedule of Condensed Income Statement | Condensed Statements of Operations Year Ended December 31, 2018 2017 2016 (Dollars in thousands) Income Interest income $ 59 $ 56 $ 81 Dividends from subsidiary 1,017 20,630 510 1,076 20,686 591 Expenses Interest 862 626 532 Other 173 361 358 1,035 987 890 Income (loss) before income taxes and equity in undistributed income of subsidiary 41 19,699 (299 ) Income tax benefit allocated from consolidated income tax return 205 326 283 Income (loss) before equity in undistributed income (loss) of subsidiary 246 20,025 (16 ) Equity in earnings of subsidiary greater than (less than) dividends received 13,669 (17,446 ) 6,392 Net income $ 13,915 $ 2,579 $ 6,376 |
Schedule of Condensed Cash Flow Statement | Condensed Statements of Cash Flows Year Ended December 31, 2018 2017 2016 (Dollars in thousands) Operating activities: Net income $ 13,915 $ 2,579 $ 6,376 Adjustments to reconcile net income to net cash provided by operating activities: Undistributed earnings of subsidiary (greater than) less than dividends received (13,669 ) 17,446 (6,392 ) (Increase) decrease in other assets 22 (97 ) 55 Increase (decrease) in other liabilities (186 ) 166 97 Net cash provided by operating activities $ 82 $ 20,094 $ 136 Investing activities: Investment in subsidiary $ — $ (25,448 ) $ (13,486 ) Net cash used in investing activities $ — $ (25,448 ) $ (13,486 ) Financing activities: Proceeds from other borrowings $ — $ 5,000 $ — Cash paid for shares surrendered upon vesting of restricted stock (147 ) (149 ) (87 ) Cash received (paid for shares surrendered) upon exercise of stock options 117 (6 ) — Repurchase of stock — (301 ) (1,835 ) Reimbursement from bank subsidiary for share-based compensation 1,086 917 864 Net cash provided by (used in) financing activities $ 1,056 $ 5,461 $ (1,058 ) Increase (decrease) in cash and cash equivalents 1,138 107 (14,408 ) Cash and cash equivalents, beginning of year 3,244 3,137 17,545 Cash and cash equivalents, end of year $ 4,382 $ 3,244 $ 3,137 Supplemental disclosure of cash flow information: Interest on other borrowings $ 856 $ 605 $ 532 Noncash investing and financing activities: Transfer of Rabbi Trust investments to Company stock $ — $ 100 $ — Common stock issued in acquisitions $ — $ 9,872 $ — |
ORGANIZATION (Details Narrative
ORGANIZATION (Details Narrative) | Dec. 31, 2018 |
Organization | |
Ownership percentage in Macon Capital Trust I | 100.00% |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Advertising Expenses | $ 900 | $ 1,000 | $ 1,100 |
Debt issuance costs of the Junior Subordinated Notes | $ 100 | $ 100 | $ 100 |
Minimum [Member] | |||
Estimated useful lives of the assets | 4 years | ||
Maximum [Member] | |||
Estimated useful lives of the assets | 30 years |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - USD ($) $ in Thousands | Oct. 02, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 24, 2017 | Dec. 31, 2016 |
Liabilities | |||||
Goodwill | $ 23,903 | $ 23,903 | $ 2,065 | ||
Chattahoochee Bank of Georgia [Member] | |||||
Assets | |||||
Cash and cash equivalents | $ 22,625 | ||||
Loans | 159,540 | ||||
Fixed assets | 3,945 | ||||
Accrued interest receivable | 421 | ||||
Core deposit intangible | |||||
Deferred tax asset | 751 | ||||
Other assets | 1,579 | ||||
Total assets acquired | 188,861 | ||||
Liabilities | |||||
Deposits | 165,624 | ||||
Accrued interest payable | 102 | ||||
Other liabilities | 4,463 | ||||
Total liabilities assumed | 170,189 | ||||
Excess of assets acquired over liabilities assumed | 18,672 | ||||
Cash paid for merger | $ 25,448 | ||||
Equity consideration (in shares) | 9,872 | ||||
Aggregate Merger Consideration | $ 35,320 | ||||
Fair Value Adjustments | |||||
Assets | |||||
Cash and cash equivalents | |||||
Loans | (570) | ||||
Fixed assets | (408) | ||||
Accrued interest receivable | |||||
Premises and equipment | 132 | ||||
Core deposit intangible | 2,070 | 1,650 | |||
Deferred tax asset | (751) | ||||
Other assets | (8) | ||||
Total assets acquired | 333 | 1,782 | |||
Liabilities | |||||
Deposits | 472 | 1,062 | |||
Accrued interest payable | (14) | ||||
Other liabilities | (14) | ||||
Total liabilities assumed | 444 | 1,062 | |||
Excess of assets acquired over liabilities assumed | (111) | 720 | |||
As recorded by the Company [Member] | |||||
Assets | |||||
Cash and cash equivalents | 22,625 | 1,258 | |||
Loans | 158,970 | 7 | |||
Fixed assets | 3,537 | ||||
Accrued interest receivable | 421 | ||||
Premises and equipment | 1,082 | ||||
Core deposit intangible | 2,070 | 1,650 | |||
Deferred tax asset | |||||
Other assets | 1,571 | ||||
Total assets acquired | 189,194 | 3,997 | |||
Liabilities | |||||
Deposits | 166,096 | 154,184 | |||
Accrued interest payable | 88 | ||||
Other liabilities | 4,449 | 321 | |||
Total liabilities assumed | 170,633 | 154,505 | |||
Excess of assets acquired over liabilities assumed | 18,561 | 150,508 | |||
Cash received to settle the acquisition | 145,492 | ||||
Goodwill | $ 16,759 | 5,016 | |||
As Recorded by Stearns [Member] | |||||
Assets | |||||
Cash and cash equivalents | 1,258 | ||||
Loans | 7 | ||||
Premises and equipment | 950 | ||||
Core deposit intangible | |||||
Total assets acquired | 2,215 | ||||
Liabilities | |||||
Deposits | 153,122 | ||||
Other liabilities | 321 | ||||
Total liabilities assumed | 153,443 | ||||
Excess of assets acquired over liabilities assumed | $ 151,228 |
INVESTMENT SECURITIES (Details)
INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Trading Securities Cash | $ 6,178 | $ 6,095 |
Amortized Cost | 364,328 | 343,467 |
Gross Unrealized Gains | 786 | 1,832 |
Gross Unrealized Losses | (5,376) | (2,436) |
Estimated fair value | 359,738 | 342,863 |
U.S. Government Agencies [Member] | ||
Amortized Cost | 34,068 | 20,529 |
Gross Unrealized Gains | 74 | 7 |
Gross Unrealized Losses | (152) | (13) |
Estimated fair value | 33,990 | 20,523 |
Municipal Securities [Member] | ||
Amortized Cost | 115,860 | 93,250 |
Gross Unrealized Gains | 209 | 975 |
Gross Unrealized Losses | (1,667) | (366) |
Estimated fair value | 114,402 | 93,859 |
Mortgage-backed Securities - Guaranteed [Member] | ||
Amortized Cost | 86,664 | 129,314 |
Gross Unrealized Gains | 98 | 112 |
Gross Unrealized Losses | (1,578) | (1,387) |
Estimated fair value | 85,184 | 128,039 |
Collateralized Mortgage Obligations - Guaranteed [Member] | ||
Amortized Cost | 22,492 | 10,559 |
Gross Unrealized Gains | 47 | |
Gross Unrealized Losses | (650) | (257) |
Estimated fair value | 21,889 | 10,302 |
Collateralized Mortgage Obligations - Non Guaranteed [Member] | ||
Amortized Cost | 69,774 | 64,706 |
Gross Unrealized Gains | 125 | 323 |
Gross Unrealized Losses | (728) | (336) |
Estimated fair value | 69,171 | 64,693 |
Mortgage-backed Securities, Collateralized mortgage obligations [Member] | ||
Amortized Cost | 15,534 | 5,555 |
Gross Unrealized Gains | 1 | 6 |
Gross Unrealized Losses | (458) | (22) |
Estimated fair value | 15,077 | 5,539 |
Corporate debt securities [Member] | ||
Amortized Cost | 19,936 | 18,925 |
Gross Unrealized Gains | 232 | 409 |
Gross Unrealized Losses | (143) | (43) |
Estimated fair value | $ 20,025 | 19,291 |
Mutual Funds [Member] | ||
Amortized Cost | 629 | |
Gross Unrealized Gains | ||
Gross Unrealized Losses | (12) | |
Estimated fair value | $ 617 |
INVESTMENT SECURITIES (Details
INVESTMENT SECURITIES (Details 2) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Held to maturity, Less Than 12 Months Fair Value | $ 88 | $ 81 |
Held to maturity, Over 12 Months Fair Value | 130 | 70 |
Held to maturity, Fair Value | 218 | 151 |
Available for sale, Less Than 12 Months Fair Value | 122,678 | 106,996 |
Available for sale, Less Than 12 Months Unrealized Losses | 1,596 | 832 |
Available for sale, Over 12 Months Fair Value | 152,331 | 90,095 |
Available for sale, Over 12 Months Unrealized Losses | 3,780 | 1,604 |
Available for sale, Fair Value | 275,009 | 197,091 |
Available for sale, Unrealized Losses | 5,376 | 2,436 |
U.S. Government Agencies [Member] | ||
Held to maturity, Less Than 12 Months Fair Value | 14 | 6 |
Held to maturity, Over 12 Months Fair Value | 1 | |
Held to maturity, Fair Value | 14 | 7 |
Available for sale, Less Than 12 Months Fair Value | 23,423 | 9,943 |
Available for sale, Less Than 12 Months Unrealized Losses | 152 | 11 |
Available for sale, Over 12 Months Fair Value | 998 | |
Available for sale, Over 12 Months Unrealized Losses | 2 | |
Available for sale, Fair Value | 23,423 | 10,941 |
Available for sale, Unrealized Losses | 152 | 13 |
Municipal Securities [Member] | ||
Held to maturity, Less Than 12 Months Fair Value | 31 | 11 |
Held to maturity, Over 12 Months Fair Value | 52 | 22 |
Held to maturity, Fair Value | 83 | 33 |
Available for sale, Less Than 12 Months Fair Value | 33,028 | 11,043 |
Available for sale, Less Than 12 Months Unrealized Losses | 421 | 61 |
Available for sale, Over 12 Months Fair Value | 56,153 | 22,982 |
Available for sale, Over 12 Months Unrealized Losses | 1,246 | 305 |
Available for sale, Fair Value | 89,181 | 34,025 |
Available for sale, Unrealized Losses | 1,667 | 366 |
Mortgage-backed Securities - Guaranteed [Member] | ||
Held to maturity, Less Than 12 Months Fair Value | 21 | 42 |
Held to maturity, Over 12 Months Fair Value | 43 | 34 |
Held to maturity, Fair Value | 64 | 76 |
Available for sale, Less Than 12 Months Fair Value | 27,692 | 51,185 |
Available for sale, Less Than 12 Months Unrealized Losses | 370 | 447 |
Available for sale, Over 12 Months Fair Value | 45,619 | 47,637 |
Available for sale, Over 12 Months Unrealized Losses | 1,208 | 940 |
Available for sale, Fair Value | 73,311 | 98,822 |
Available for sale, Unrealized Losses | 1,578 | 1,387 |
Collateralized Mortgage Obligations - Guaranteed [Member] | ||
Held to maturity, Less Than 12 Months Fair Value | 1 | 2 |
Held to maturity, Over 12 Months Fair Value | 8 | 3 |
Held to maturity, Fair Value | 9 | 5 |
Available for sale, Less Than 12 Months Fair Value | 2,042 | 4,139 |
Available for sale, Less Than 12 Months Unrealized Losses | 19 | 57 |
Available for sale, Over 12 Months Fair Value | 15,294 | 6,163 |
Available for sale, Over 12 Months Unrealized Losses | 631 | 200 |
Available for sale, Fair Value | 17,336 | 10,302 |
Available for sale, Unrealized Losses | 650 | 257 |
Collateralized Mortgage Obligations - Non Guaranteed [Member] | ||
Held to maturity, Less Than 12 Months Fair Value | 12 | 16 |
Held to maturity, Over 12 Months Fair Value | 22 | 8 |
Held to maturity, Fair Value | 34 | 24 |
Available for sale, Less Than 12 Months Fair Value | 22,383 | 25,862 |
Available for sale, Less Than 12 Months Unrealized Losses | 185 | 225 |
Available for sale, Over 12 Months Fair Value | 30,471 | 10,654 |
Available for sale, Over 12 Months Unrealized Losses | 543 | 111 |
Available for sale, Fair Value | 52,854 | 36,516 |
Available for sale, Unrealized Losses | 728 | 336 |
Mortgage-backed Securities, Collateralized mortgage obligations [Member] | ||
Held to maturity, Less Than 12 Months Fair Value | 6 | 2 |
Held to maturity, Over 12 Months Fair Value | 1 | |
Held to maturity, Fair Value | 7 | 2 |
Available for sale, Less Than 12 Months Fair Value | 11,618 | 3,520 |
Available for sale, Less Than 12 Months Unrealized Losses | 404 | 22 |
Available for sale, Over 12 Months Fair Value | 1,449 | |
Available for sale, Over 12 Months Unrealized Losses | 54 | |
Available for sale, Fair Value | 13,067 | 3,520 |
Available for sale, Unrealized Losses | 458 | 22 |
Corporate debt securities [Member] | ||
Held to maturity, Less Than 12 Months Fair Value | 3 | 2 |
Held to maturity, Over 12 Months Fair Value | 4 | 1 |
Held to maturity, Fair Value | 7 | 3 |
Available for sale, Less Than 12 Months Fair Value | 2,492 | 1,304 |
Available for sale, Less Than 12 Months Unrealized Losses | 45 | 9 |
Available for sale, Over 12 Months Fair Value | 3,345 | 1,044 |
Available for sale, Over 12 Months Unrealized Losses | 98 | 34 |
Available for sale, Fair Value | 5,837 | 2,348 |
Available for sale, Unrealized Losses | $ 143 | 43 |
Mutual Funds [Member] | ||
Held to maturity, Less Than 12 Months Fair Value | ||
Held to maturity, Over 12 Months Fair Value | 1 | |
Held to maturity, Fair Value | 1 | |
Available for sale, Less Than 12 Months Fair Value | ||
Available for sale, Less Than 12 Months Unrealized Losses | ||
Available for sale, Over 12 Months Fair Value | 617 | |
Available for sale, Over 12 Months Unrealized Losses | 12 | |
Available for sale, Fair Value | 617 | |
Available for sale, Unrealized Losses | $ 12 |
INVESTMENT SECURITIES (Detail_2
INVESTMENT SECURITIES (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Gross proceeds | $ 55,428 | $ 169,146 | $ 124,823 |
Gross realized gains | 504 | 558 | 1,261 |
Gross realized losses | 1,047 | 1,660 | 45 |
Securities pledged against deposits | 155,800 | 143,300 | |
Available-for-sale Securities [Member] | |||
Gross proceeds | 55,001 | 169,146 | 124,823 |
Gross realized gains | 77 | 558 | 1,261 |
Gross realized losses | 1,047 | 1,660 | 45 |
Visa Class B Restricted Shares [Member] | |||
Gross proceeds | 427 | ||
Gross realized gains | 427 | ||
Gross realized losses |
INVESTMENT SECURITIES (Detail_3
INVESTMENT SECURITIES (Details 4) $ in Thousands | Dec. 31, 2018USD ($) |
Disclosure Investment Securities Details Abstract | |
Available for sale, Over 1 year through 5 years, Amortized Cost | $ 6,544 |
Available for sale, After 5 years through 10 years, Amortized Cost | 28,661 |
Available for sale, Over 10 years, Amortized Cost | 150,193 |
Available for sale, Before Amortized Cost Available for sale, Mortgage-backed securities, Amortized Cost | 185,398 |
Available for sale, Mortgage-backed securities, Amortized Cost | 178,930 |
Available for sale, Total, Amortized Cost | 364,328 |
Available for Sale, Over 1 year through 5 years, Fair Value | 6,563 |
Available for Sale, After 5 years through 10 years, Fair Value | 28,581 |
Available for Sale, Over 10 years, Fair Value | 148,350 |
Available for sale, Before Amortized Cost Available for sale, Mortgage-backed securities, Fair Value | 183,494 |
Available for Sale, Mortgage-backed securities, Fair Value | 176,244 |
Available for Sale, Total, Fair Value | $ 359,738 |
LOANS RECEIVABLE (Details)
LOANS RECEIVABLE (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | $ 1,077,775 | $ 1,008,903 | ||
Less: Net deferred loan fees | (1,000) | (1,431) | ||
Fair value discount | (1,048) | (2,012) | $ 857 | $ 72 |
Hedged loans basis adjustment | 245 | |||
Unamortized premium | 333 | 389 | ||
Unamortized discount | (236) | (710) | ||
Loans receivable | 1,076,069 | 1,005,139 | ||
One To Four Family Residential [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 325,560 | 304,107 | ||
Loans receivable | 325,155 | 302,984 | ||
Commercial Real Estate Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 498,106 | 453,725 | ||
Loans receivable | 496,549 | 451,029 | ||
Home Equity Line of Credit [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 48,679 | 49,877 | ||
Loans receivable | 48,825 | 49,961 | ||
Residential Construction [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 39,533 | 37,108 | ||
Loans receivable | 39,488 | 37,144 | ||
Other Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 104,645 | 101,447 | ||
Loans receivable | 104,464 | 101,168 | ||
Real Estate Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 1,016,523 | 946,264 | ||
Commercial Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 54,410 | 56,939 | ||
Loans receivable | 54,643 | 57,076 | ||
Consumer Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 6,842 | 5,700 | ||
Loans receivable | 6,945 | 5,777 | ||
Commercial and Consumer Loan [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | $ 61,252 | $ 62,639 |
LOANS RECEIVABLE (Detail Narrat
LOANS RECEIVABLE (Detail Narrative) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Federal Reserve Bank Advances [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral to secure funding amount | $ 114,400 | $ 108,300 |
Federal Home Loan Bank of Atlanta [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral to secure funding amount | $ 256,100 | $ 231,800 |
LOANS RECEIVABLE (Details 2)
LOANS RECEIVABLE (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Discount on purchased loans, beginning of period | $ 1,431 | ||
Discount on purchased loans, end of period | 1,000 | $ 1,431 | |
Fair value discount, beginning of year | (2,012) | 857 | $ 72 |
Additional discount for acquisitions | 2,479 | 960 | |
Accretion | (964) | (1,324) | (175) |
Discount on purchased loans, end of period | (1,048) | (2,012) | 857 |
Federal Deposit Insurance Corporation [Member] | |||
Discount on purchased loans, beginning of period | 710 | 1,150 | 1,366 |
Accretion | (474) | (440) | (216) |
Discount on purchased loans, end of period | $ 236 | $ 710 | $ 1,150 |
LOANS RECEIVABLE (Details 3)
LOANS RECEIVABLE (Details 3) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Loans Receivable Details 3Abstract | ||
Balance at beginning of year | $ 8,114 | $ 8,222 |
New loans | 208 | 428 |
Repayments | (950) | (536) |
Balance at end of year | $ 7,372 | $ 8,114 |
ALLOWANCE FOR LOAN LOSSES (Deta
ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | $ 10,887 | $ 9,305 | $ 9,461 |
Provision | 1,201 | 1,897 | 274 |
Charge-offs | (714) | (971) | (1,546) |
Recoveries | 611 | 656 | 1,116 |
Balance, end of period | 11,985 | 10,887 | 9,305 |
One To Four Family Residential [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 4,018 | 2,812 | 2,455 |
Provision | (1) | 1,181 | 413 |
Charge-offs | (124) | (93) | (133) |
Recoveries | 16 | 118 | 77 |
Balance, end of period | 3,909 | 4,018 | 2,812 |
Commercial Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 4,364 | 3,979 | 3,221 |
Provision | 674 | 503 | 1,016 |
Charge-offs | (75) | (193) | (431) |
Recoveries | 167 | 75 | 173 |
Balance, end of period | 5,130 | 4,364 | 3,979 |
Home Equity Line of Credit [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 616 | 677 | 1,097 |
Provision | 184 | 201 | (486) |
Charge-offs | (283) | (268) | (158) |
Recoveries | 43 | 6 | 224 |
Balance, end of period | 560 | 616 | 677 |
Residential Construction [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 303 | 185 | 278 |
Provision | 148 | 118 | (125) |
Charge-offs | |||
Recoveries | 1 | 32 | |
Balance, end of period | 452 | 303 | 185 |
Other Portfolio Segment [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 1,025 | 848 | 1,400 |
Provision | 219 | 318 | (122) |
Charge-offs | (40) | (289) | (560) |
Recoveries | 46 | 148 | 130 |
Balance, end of period | 1,250 | 1,025 | 848 |
Commercial Portfolio Segment [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 503 | 599 | 603 |
Provision | 177 | (53) | (85) |
Charge-offs | (84) | (68) | (63) |
Recoveries | 12 | 25 | 144 |
Balance, end of period | 608 | 503 | 599 |
Consumer Portfolio Segment [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 58 | 205 | 407 |
Provision | (200) | (371) | (337) |
Charge-offs | (108) | (60) | (201) |
Recoveries | 326 | 284 | 336 |
Balance, end of period | $ 76 | $ 58 | $ 205 |
ALLOWANCE FOR LOAN LOSSES (De_2
ALLOWANCE FOR LOAN LOSSES (Details 2) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Allowance for loan losses | ||||
Individually evaluated for impairment | $ 167 | $ 322 | ||
Collectively evaluated for impairment | 11,818 | 10,565 | ||
Balance, end of period | 11,985 | 10,887 | $ 9,305 | $ 9,461 |
Loans Receivable | ||||
Individually evaluated for impairment | 10,885 | 11,634 | ||
Collectively evaluated for impairment | 1,065,184 | 993,505 | ||
Total Loans Receivable | 1,076,069 | 1,005,139 | ||
One To Four Family Residential [Member] | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 79 | 185 | ||
Collectively evaluated for impairment | 3,830 | 3,833 | ||
Balance, end of period | 3,909 | 4,018 | 2,812 | 2,455 |
Loans Receivable | ||||
Individually evaluated for impairment | 2,900 | 3,873 | ||
Collectively evaluated for impairment | 322,255 | 299,111 | ||
Total Loans Receivable | 325,155 | 302,984 | ||
Commercial Real Estate Portfolio Segment [Member] | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 27 | 56 | ||
Collectively evaluated for impairment | 5,103 | 4,308 | ||
Balance, end of period | 5,130 | 4,364 | 3,979 | 3,221 |
Loans Receivable | ||||
Individually evaluated for impairment | 6,019 | 5,714 | ||
Collectively evaluated for impairment | 490,530 | 445,315 | ||
Total Loans Receivable | 496,549 | 451,029 | ||
Home Equity Line of Credit [Member] | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | ||||
Collectively evaluated for impairment | 560 | 616 | ||
Balance, end of period | 560 | 616 | 677 | 1,097 |
Loans Receivable | ||||
Individually evaluated for impairment | 313 | 313 | ||
Collectively evaluated for impairment | 48,512 | 49,648 | ||
Total Loans Receivable | 48,825 | 49,961 | ||
Residential Construction [Member] | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | ||||
Collectively evaluated for impairment | 452 | 303 | ||
Balance, end of period | 452 | 303 | 185 | 278 |
Loans Receivable | ||||
Individually evaluated for impairment | ||||
Collectively evaluated for impairment | 39,488 | 37,144 | ||
Total Loans Receivable | 39,488 | 37,144 | ||
Other Portfolio Segment [Member] | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 54 | 66 | ||
Collectively evaluated for impairment | 1,196 | 959 | ||
Balance, end of period | 1,250 | 1,025 | 848 | 1,400 |
Loans Receivable | ||||
Individually evaluated for impairment | 1,377 | 1,443 | ||
Collectively evaluated for impairment | 103,087 | 99,725 | ||
Total Loans Receivable | 104,464 | 101,168 | ||
Commercial Portfolio Segment [Member] | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 7 | 15 | ||
Collectively evaluated for impairment | 601 | 488 | ||
Balance, end of period | 608 | 503 | 599 | 603 |
Loans Receivable | ||||
Individually evaluated for impairment | 276 | 291 | ||
Collectively evaluated for impairment | 54,367 | 56,785 | ||
Total Loans Receivable | 54,643 | 57,076 | ||
Consumer Portfolio Segment [Member] | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | ||||
Collectively evaluated for impairment | 76 | 58 | ||
Balance, end of period | 76 | 58 | $ 205 | $ 407 |
Loans Receivable | ||||
Individually evaluated for impairment | ||||
Collectively evaluated for impairment | 6,945 | 5,777 | ||
Total Loans Receivable | $ 6,945 | $ 5,777 |
ALLOWANCE FOR LOAN LOSSES (De_3
ALLOWANCE FOR LOAN LOSSES (Details 3) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Loans receivable | $ 1,076,069 | $ 1,005,139 |
One To Four Family Residential [Member] | ||
Loans receivable | 325,155 | 302,984 |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans receivable | 496,549 | 451,029 |
Home Equity Line of Credit [Member] | ||
Loans receivable | 48,825 | 49,961 |
Residential Construction [Member] | ||
Loans receivable | 39,488 | 37,144 |
Other Portfolio Segment [Member] | ||
Loans receivable | 104,464 | 101,168 |
Commercial Portfolio Segment [Member] | ||
Loans receivable | 54,643 | 57,076 |
Consumer Portfolio Segment [Member] | ||
Loans receivable | 6,945 | 5,777 |
Graded Loan [Member] | ||
Loans receivable | 852,337 | 796,077 |
Graded Loan [Member] | One To Four Family Residential [Member] | ||
Loans receivable | 179,044 | 162,065 |
Graded Loan [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans receivable | 486,105 | 450,773 |
Graded Loan [Member] | Home Equity Line of Credit [Member] | ||
Loans receivable | 9,841 | 10,156 |
Graded Loan [Member] | Residential Construction [Member] | ||
Loans receivable | 31,128 | 26,667 |
Graded Loan [Member] | Other Portfolio Segment [Member] | ||
Loans receivable | 93,066 | 88,462 |
Graded Loan [Member] | Commercial Portfolio Segment [Member] | ||
Loans receivable | 52,632 | 57,035 |
Graded Loan [Member] | Consumer Portfolio Segment [Member] | ||
Loans receivable | 521 | 919 |
Graded Loan [Member] | Loan Grade One [Member] | ||
Loans receivable | 8,840 | 10,762 |
Graded Loan [Member] | Loan Grade One [Member] | One To Four Family Residential [Member] | ||
Loans receivable | ||
Graded Loan [Member] | Loan Grade One [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans receivable | 7,569 | 9,086 |
Graded Loan [Member] | Loan Grade One [Member] | Home Equity Line of Credit [Member] | ||
Loans receivable | ||
Graded Loan [Member] | Loan Grade One [Member] | Residential Construction [Member] | ||
Loans receivable | ||
Graded Loan [Member] | Loan Grade One [Member] | Other Portfolio Segment [Member] | ||
Loans receivable | ||
Graded Loan [Member] | Loan Grade One [Member] | Commercial Portfolio Segment [Member] | ||
Loans receivable | 1,264 | 1,665 |
Graded Loan [Member] | Loan Grade One [Member] | Consumer Portfolio Segment [Member] | ||
Loans receivable | 7 | 11 |
Graded Loan [Member] | Loan Grade Two [Member] | ||
Loans receivable | 7,880 | 15,700 |
Graded Loan [Member] | Loan Grade Two [Member] | One To Four Family Residential [Member] | ||
Loans receivable | 1,164 | |
Graded Loan [Member] | Loan Grade Two [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans receivable | 7,860 | 12,360 |
Graded Loan [Member] | Loan Grade Two [Member] | Home Equity Line of Credit [Member] | ||
Loans receivable | ||
Graded Loan [Member] | Loan Grade Two [Member] | Residential Construction [Member] | ||
Loans receivable | ||
Graded Loan [Member] | Loan Grade Two [Member] | Other Portfolio Segment [Member] | ||
Loans receivable | 904 | |
Graded Loan [Member] | Loan Grade Two [Member] | Commercial Portfolio Segment [Member] | ||
Loans receivable | 20 | 1,272 |
Graded Loan [Member] | Loan Grade Two [Member] | Consumer Portfolio Segment [Member] | ||
Loans receivable | ||
Graded Loan [Member] | Loan Grade Three [Member] | ||
Loans receivable | 162,016 | 150,353 |
Graded Loan [Member] | Loan Grade Three [Member] | One To Four Family Residential [Member] | ||
Loans receivable | 31,623 | 34,593 |
Graded Loan [Member] | Loan Grade Three [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans receivable | 87,756 | 78,485 |
Graded Loan [Member] | Loan Grade Three [Member] | Home Equity Line of Credit [Member] | ||
Loans receivable | 5,212 | 5,312 |
Graded Loan [Member] | Loan Grade Three [Member] | Residential Construction [Member] | ||
Loans receivable | 9,365 | 7,262 |
Graded Loan [Member] | Loan Grade Three [Member] | Other Portfolio Segment [Member] | ||
Loans receivable | 12,111 | 9,207 |
Graded Loan [Member] | Loan Grade Three [Member] | Commercial Portfolio Segment [Member] | ||
Loans receivable | 15,685 | 15,117 |
Graded Loan [Member] | Loan Grade Three [Member] | Consumer Portfolio Segment [Member] | ||
Loans receivable | 264 | 377 |
Graded Loan [Member] | Loan Grade Four [Member] | ||
Loans receivable | 508,955 | 451,839 |
Graded Loan [Member] | Loan Grade Four [Member] | One To Four Family Residential [Member] | ||
Loans receivable | 121,688 | 99,816 |
Graded Loan [Member] | Loan Grade Four [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans receivable | 280,630 | 249,103 |
Graded Loan [Member] | Loan Grade Four [Member] | Home Equity Line of Credit [Member] | ||
Loans receivable | 4,014 | 3,901 |
Graded Loan [Member] | Loan Grade Four [Member] | Residential Construction [Member] | ||
Loans receivable | 18,358 | 16,294 |
Graded Loan [Member] | Loan Grade Four [Member] | Other Portfolio Segment [Member] | ||
Loans receivable | 61,646 | 57,065 |
Graded Loan [Member] | Loan Grade Four [Member] | Commercial Portfolio Segment [Member] | ||
Loans receivable | 22,374 | 25,137 |
Graded Loan [Member] | Loan Grade Four [Member] | Consumer Portfolio Segment [Member] | ||
Loans receivable | 245 | 523 |
Graded Loan [Member] | Loan Grade Five [Member] | ||
Loans receivable | 147,397 | 146,316 |
Graded Loan [Member] | Loan Grade Five [Member] | One To Four Family Residential [Member] | ||
Loans receivable | 24,738 | 22,639 |
Graded Loan [Member] | Loan Grade Five [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans receivable | 88,698 | 87,745 |
Graded Loan [Member] | Loan Grade Five [Member] | Home Equity Line of Credit [Member] | ||
Loans receivable | 615 | 943 |
Graded Loan [Member] | Loan Grade Five [Member] | Residential Construction [Member] | ||
Loans receivable | 3,404 | 3,111 |
Graded Loan [Member] | Loan Grade Five [Member] | Other Portfolio Segment [Member] | ||
Loans receivable | 17,630 | 18,806 |
Graded Loan [Member] | Loan Grade Five [Member] | Commercial Portfolio Segment [Member] | ||
Loans receivable | 12,307 | 13,064 |
Graded Loan [Member] | Loan Grade Five [Member] | Consumer Portfolio Segment [Member] | ||
Loans receivable | 5 | 8 |
Graded Loan [Member] | Loan Grade Six [Member] | ||
Loans receivable | 9,987 | 12,725 |
Graded Loan [Member] | Loan Grade Six [Member] | One To Four Family Residential [Member] | ||
Loans receivable | 321 | 1,741 |
Graded Loan [Member] | Loan Grade Six [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans receivable | 7,867 | 8,623 |
Graded Loan [Member] | Loan Grade Six [Member] | Home Equity Line of Credit [Member] | ||
Loans receivable | ||
Graded Loan [Member] | Loan Grade Six [Member] | Residential Construction [Member] | ||
Loans receivable | 1 | |
Graded Loan [Member] | Loan Grade Six [Member] | Other Portfolio Segment [Member] | ||
Loans receivable | 1,303 | 2,055 |
Graded Loan [Member] | Loan Grade Six [Member] | Commercial Portfolio Segment [Member] | ||
Loans receivable | 495 | 306 |
Graded Loan [Member] | Loan Grade Six [Member] | Consumer Portfolio Segment [Member] | ||
Loans receivable | ||
Graded Loan [Member] | Loan Grade Seven [Member] | ||
Loans receivable | 7,262 | 8,382 |
Graded Loan [Member] | Loan Grade Seven [Member] | One To Four Family Residential [Member] | ||
Loans receivable | 674 | 2,112 |
Graded Loan [Member] | Loan Grade Seven [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans receivable | 5,725 | 5,371 |
Graded Loan [Member] | Loan Grade Seven [Member] | Home Equity Line of Credit [Member] | ||
Loans receivable | ||
Graded Loan [Member] | Loan Grade Seven [Member] | Residential Construction [Member] | ||
Loans receivable | ||
Graded Loan [Member] | Loan Grade Seven [Member] | Other Portfolio Segment [Member] | ||
Loans receivable | 376 | 425 |
Graded Loan [Member] | Loan Grade Seven [Member] | Commercial Portfolio Segment [Member] | ||
Loans receivable | 487 | 474 |
Graded Loan [Member] | Loan Grade Seven [Member] | Consumer Portfolio Segment [Member] | ||
Loans receivable | ||
UnGraded Loan [Member] | ||
Loans receivable | 223,732 | 209,062 |
UnGraded Loan [Member] | One To Four Family Residential [Member] | ||
Loans receivable | 146,111 | 140,919 |
UnGraded Loan [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans receivable | 10,444 | 256 |
UnGraded Loan [Member] | Home Equity Line of Credit [Member] | ||
Loans receivable | 38,984 | 39,805 |
UnGraded Loan [Member] | Residential Construction [Member] | ||
Loans receivable | 8,360 | 10,477 |
UnGraded Loan [Member] | Other Portfolio Segment [Member] | ||
Loans receivable | 11,398 | 12,706 |
UnGraded Loan [Member] | Commercial Portfolio Segment [Member] | ||
Loans receivable | 2,011 | 41 |
UnGraded Loan [Member] | Consumer Portfolio Segment [Member] | ||
Loans receivable | 6,424 | 4,858 |
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | ||
Loans receivable | 907 | 1,121 |
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | One To Four Family Residential [Member] | ||
Loans receivable | 641 | 906 |
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans receivable | 24 | |
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Home Equity Line of Credit [Member] | ||
Loans receivable | 178 | 120 |
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Residential Construction [Member] | ||
Loans receivable | ||
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Other Portfolio Segment [Member] | ||
Loans receivable | 64 | 83 |
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Commercial Portfolio Segment [Member] | ||
Loans receivable | ||
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Consumer Portfolio Segment [Member] | ||
Loans receivable | 12 | |
UnGraded Loan [Member] | Performing Financing Receivable [Member] | ||
Loans receivable | 222,825 | 207,941 |
UnGraded Loan [Member] | Performing Financing Receivable [Member] | One To Four Family Residential [Member] | ||
Loans receivable | 145,470 | 140,013 |
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans receivable | 10,420 | 256 |
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Home Equity Line of Credit [Member] | ||
Loans receivable | 38,806 | 39,685 |
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Residential Construction [Member] | ||
Loans receivable | 8,360 | 10,477 |
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Other Portfolio Segment [Member] | ||
Loans receivable | 11,334 | 12,623 |
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Commercial Portfolio Segment [Member] | ||
Loans receivable | 2,011 | 41 |
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Consumer Portfolio Segment [Member] | ||
Loans receivable | $ 6,424 | $ 4,846 |
ALLOWANCE FOR LOAN LOSSES (De_4
ALLOWANCE FOR LOAN LOSSES (Details 4) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | $ 7,524 | $ 9,069 |
60-89 Days Past | 1,835 | 973 |
90 Days and Over Past Due | 2,125 | 1,563 |
Total Past Due | 11,484 | 11,605 |
Current | 1,064,585 | 993,534 |
Total Loans Receivable | 1,076,069 | 1,005,139 |
One To Four Family Residential [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 3,562 | 3,941 |
60-89 Days Past | 1,317 | 591 |
90 Days and Over Past Due | 84 | 562 |
Total Past Due | 4,963 | 5,094 |
Current | 320,192 | 297,890 |
Total Loans Receivable | 325,155 | 302,984 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 2,615 | 2,093 |
60-89 Days Past | 308 | |
90 Days and Over Past Due | 1,782 | 683 |
Total Past Due | 4,397 | 3,084 |
Current | 492,152 | 447,945 |
Total Loans Receivable | 496,549 | 451,029 |
Home Equity Line of Credit [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 400 | 308 |
60-89 Days Past | 457 | 27 |
90 Days and Over Past Due | 73 | 120 |
Total Past Due | 930 | 455 |
Current | 47,895 | 49,506 |
Total Loans Receivable | 48,825 | 49,961 |
Residential Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 501 | |
60-89 Days Past | ||
90 Days and Over Past Due | 1 | |
Total Past Due | 1 | 501 |
Current | 39,487 | 36,643 |
Total Loans Receivable | 39,488 | 37,144 |
Other Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 613 | 1,711 |
60-89 Days Past | 32 | 21 |
90 Days and Over Past Due | 64 | 93 |
Total Past Due | 709 | 1,825 |
Current | 103,755 | 99,343 |
Total Loans Receivable | 104,464 | 101,168 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 307 | 488 |
60-89 Days Past | 25 | 1 |
90 Days and Over Past Due | 121 | 95 |
Total Past Due | 453 | 584 |
Current | 54,190 | 56,492 |
Total Loans Receivable | 54,643 | 57,076 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 27 | 27 |
60-89 Days Past | 4 | 25 |
90 Days and Over Past Due | 10 | |
Total Past Due | 31 | 62 |
Current | 6,914 | 5,715 |
Total Loans Receivable | $ 6,945 | $ 5,777 |
ALLOWANCE FOR LOAN LOSSES (De_5
ALLOWANCE FOR LOAN LOSSES (Details 5) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Impaired [Line Items] | ||
Recorded Balance, without a valuation allowance | $ 5,328 | $ 7,200 |
Unpaid Principal Balance, without a valuation allowance | 7,779 | 9,601 |
Recorded Balance, Recorded Balance, with a valuation allowance | 5,557 | 4,434 |
Unpaid Principal Balance, with a valuation allowance | 5,557 | 4,434 |
Recorded Balance | 10,885 | 11,634 |
Unpaid Principal Balance | 13,336 | 14,035 |
Specific Allowance | 167 | 322 |
One To Four Family Residential [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Balance, without a valuation allowance | 845 | 2,266 |
Unpaid Principal Balance, without a valuation allowance | 923 | 2,376 |
Recorded Balance, Recorded Balance, with a valuation allowance | 2,055 | 1,607 |
Unpaid Principal Balance, with a valuation allowance | 2,055 | 1,607 |
Recorded Balance | 2,900 | 3,873 |
Unpaid Principal Balance | 2,978 | 3,983 |
Specific Allowance | 79 | 185 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Balance, without a valuation allowance | 3,835 | 4,050 |
Unpaid Principal Balance, without a valuation allowance | 6,207 | 6,119 |
Recorded Balance, Recorded Balance, with a valuation allowance | 2,184 | 1,664 |
Unpaid Principal Balance, with a valuation allowance | 2,184 | 1,664 |
Recorded Balance | 6,019 | 5,714 |
Unpaid Principal Balance | 8,391 | 7,783 |
Specific Allowance | 27 | 56 |
Home Equity Line of Credit [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Balance, without a valuation allowance | 283 | 313 |
Unpaid Principal Balance, without a valuation allowance | 283 | 428 |
Recorded Balance, Recorded Balance, with a valuation allowance | 30 | |
Unpaid Principal Balance, with a valuation allowance | 30 | |
Recorded Balance | 313 | 313 |
Unpaid Principal Balance | 313 | 428 |
Specific Allowance | ||
Other Portfolio Segment [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Balance, without a valuation allowance | 365 | 571 |
Unpaid Principal Balance, without a valuation allowance | 366 | 678 |
Recorded Balance, Recorded Balance, with a valuation allowance | 1,012 | 872 |
Unpaid Principal Balance, with a valuation allowance | 1,012 | 872 |
Recorded Balance | 1,377 | 1,443 |
Unpaid Principal Balance | 1,378 | 1,550 |
Specific Allowance | 54 | 66 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Balance, Recorded Balance, with a valuation allowance | 276 | 291 |
Unpaid Principal Balance, with a valuation allowance | 276 | 291 |
Recorded Balance | 276 | 291 |
Unpaid Principal Balance | 276 | 291 |
Specific Allowance | $ 7 | $ 15 |
ALLOWANCE FOR LOAN LOSSES (De_6
ALLOWANCE FOR LOAN LOSSES (Details 6) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Average Investment in Impaired Loans, without a valuation allowance | $ 7,846 | $ 9,717 | $ 11,843 |
Interest Income Recognized, without a valuation allowance | 247 | 319 | 270 |
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance | 5,994 | 4,534 | 4,699 |
Interest Income Recognized, with a valuation allowance | 236 | 221 | 190 |
Average Investment in Impaired Loans | 13,840 | 14,251 | 16,542 |
Interest Income Recognized | 483 | 540 | 460 |
One To Four Family Residential [Member] | |||
Average Investment in Impaired Loans, without a valuation allowance | 940 | 2,415 | 2,758 |
Interest Income Recognized, without a valuation allowance | 71 | 116 | 117 |
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance | 2,145 | 1,642 | 1,162 |
Interest Income Recognized, with a valuation allowance | 72 | 75 | 48 |
Average Investment in Impaired Loans | 3,085 | 4,057 | 3,920 |
Interest Income Recognized | 143 | 191 | 165 |
Commercial Real Estate Portfolio Segment [Member] | |||
Average Investment in Impaired Loans, without a valuation allowance | 6,250 | 6,188 | 7,834 |
Interest Income Recognized, without a valuation allowance | 136 | 128 | 116 |
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance | 2,252 | 1,685 | 2,098 |
Interest Income Recognized, with a valuation allowance | 94 | 87 | 82 |
Average Investment in Impaired Loans | 8,502 | 7,873 | 9,932 |
Interest Income Recognized | 230 | 215 | 198 |
Home Equity Line of Credit [Member] | |||
Average Investment in Impaired Loans, without a valuation allowance | 283 | 428 | 328 |
Interest Income Recognized, without a valuation allowance | 18 | 55 | 10 |
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance | 145 | 100 | |
Interest Income Recognized, with a valuation allowance | 4 | ||
Average Investment in Impaired Loans | 428 | 428 | 428 |
Interest Income Recognized | 18 | 55 | 14 |
Other Portfolio Segment [Member] | |||
Average Investment in Impaired Loans, without a valuation allowance | 373 | 686 | 923 |
Interest Income Recognized, without a valuation allowance | 22 | 20 | 27 |
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance | 1,169 | 908 | 1,027 |
Interest Income Recognized, with a valuation allowance | 47 | 38 | 37 |
Average Investment in Impaired Loans | 1,542 | 1,594 | 1,950 |
Interest Income Recognized | 69 | 58 | 64 |
Commercial Portfolio Segment [Member] | |||
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance | 283 | 299 | 312 |
Interest Income Recognized, with a valuation allowance | 23 | 21 | 19 |
Average Investment in Impaired Loans | 283 | 299 | 312 |
Interest Income Recognized | $ 23 | $ 21 | $ 19 |
ALLOWANCE FOR LOAN LOSSES (De_7
ALLOWANCE FOR LOAN LOSSES (Details 7) - Nonperforming Financing Receivable [Member] - Loans [Member] - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Non Performing Loan Receivables and Other Assets [Line Items] | ||
Finance receivable, non-accrual | $ 4,857 | $ 4,778 |
One To Four Family Residential [Member] | ||
Non Performing Loan Receivables and Other Assets [Line Items] | ||
Finance receivable, non-accrual | 1,037 | 1,421 |
Commercial Real Estate Portfolio Segment [Member] | ||
Non Performing Loan Receivables and Other Assets [Line Items] | ||
Finance receivable, non-accrual | 3,266 | 2,666 |
Home Equity Line of Credit [Member] | ||
Non Performing Loan Receivables and Other Assets [Line Items] | ||
Finance receivable, non-accrual | 178 | 120 |
Other Portfolio Segment [Member] | ||
Non Performing Loan Receivables and Other Assets [Line Items] | ||
Finance receivable, non-accrual | 256 | 464 |
Commercial Portfolio Segment [Member] | ||
Non Performing Loan Receivables and Other Assets [Line Items] | ||
Finance receivable, non-accrual | 120 | 95 |
Consumer Portfolio Segment [Member] | ||
Non Performing Loan Receivables and Other Assets [Line Items] | ||
Finance receivable, non-accrual | $ 12 |
ALLOWANCE FOR LOAN LOSSES (De_8
ALLOWANCE FOR LOAN LOSSES (Details 8) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Modifications [Line Items] | ||
TDR loans | $ 9,633 | $ 10,760 |
Performing Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 7,588 | 8,952 |
Nonperforming Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 2,045 | 1,808 |
One To Four Family Residential [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 2,515 | 3,452 |
One To Four Family Residential [Member] | Performing Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 2,154 | 3,452 |
One To Four Family Residential [Member] | Nonperforming Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 361 | |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 5,152 | 5,243 |
Commercial Real Estate Portfolio Segment [Member] | Performing Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 3,690 | 3,805 |
Commercial Real Estate Portfolio Segment [Member] | Nonperforming Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 1,462 | 1,438 |
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 | 283 | 313 |
Home Equity Line of Credit [Member] | Nonperforming Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 30 | |
Other Portfolio Segment [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 1,377 | 1,461 |
Other Portfolio Segment [Member] | Performing Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 1,185 | 1,091 |
Other Portfolio Segment [Member] | Nonperforming Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 192 | 370 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 276 | 291 |
Commercial Portfolio Segment [Member] | Performing Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 276 | 291 |
Commercial Portfolio Segment [Member] | Nonperforming Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans |
ALLOWANCE FOR LOAN LOSSES (De_9
ALLOWANCE FOR LOAN LOSSES (Details 9) - Extended Payment Term [Member] $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)LoansModifications | Dec. 31, 2017USD ($)LoansModifications | |
Number of Loans | LoansModifications | 1 | 1 |
Pre-modification Outstanding Recorded Investment | $ 242 | |
Post-modification Outstanding Recorded Investment | $ 166 | |
Modification Outstanding Recorded Investment | $ 206 | |
Commercial Real Estate Portfolio Segment [Member] | ||
Number of Loans | LoansModifications | 1 | |
Modification Outstanding Recorded Investment | $ 206 | |
Other Portfolio Segment [Member] | ||
Number of Loans | LoansModifications | 1 | |
Pre-modification Outstanding Recorded Investment | $ 242 | |
Post-modification Outstanding Recorded Investment | $ 166 |
CONCENTRATIONS OF CREDIT RISK_2
CONCENTRATIONS OF CREDIT RISK (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Maximum legal lending limits | $ 24,600 | $ 22,100 |
Percentage of Total Loan | 1.00% | 100.00% |
One To Four Family Residential [Member] | ||
Percentage of Total Loan | 30.20% | 30.10% |
Commercial Real Estate Portfolio Segment [Member] | ||
Percentage of Total Loan | 46.20% | 45.00% |
Home Equity Line of Credit [Member] | ||
Percentage of Total Loan | 4.50% | 4.90% |
Residential Construction [Member] | ||
Percentage of Total Loan | 3.70% | 3.70% |
Other Portfolio Segment [Member] | ||
Percentage of Total Loan | 9.70% | 10.10% |
Commercial Portfolio Segment [Member] | ||
Percentage of Total Loan | 5.10% | 5.60% |
Consumer Portfolio Segment [Member] | ||
Percentage of Total Loan | 0.60% | 0.60% |
FIXED ASSETS (Details)
FIXED ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Total premises and equipment | $ 44,980 | $ 41,325 | |
Less: Accumulated depreciation | (18,595) | (17,212) | |
Premises and equipment, net | 26,385 | 24,113 | |
Depreciation and leasehold amortization expense | 1,400 | 1,400 | $ 1,200 |
Land [Member] | |||
Total premises and equipment | 10,554 | 10,054 | |
Building [Member] | |||
Total premises and equipment | 24,947 | 22,452 | |
Furniture and Fixtures [Member] | |||
Total premises and equipment | 9,386 | 8,767 | |
Construction in Progress [Member] | |||
Total premises and equipment | $ 93 | $ 52 |
FIXED ASSETS (Details 2)
FIXED ASSETS (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Commitments And Contingencies Details Abstract | |||
2019 | $ 155 | ||
2020 | 69 | ||
2021 | 53 | ||
2022 | 18 | ||
Total minimum lease commitments | 295 | ||
Rental Expense | $ 200 | $ 200 | $ 100 |
REAL ESTATE OWNED (Details)
REAL ESTATE OWNED (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure Real Estate Owned Details Abstract | ||||
Real estate owned, gross | $ 3,246 | $ 3,585 | ||
Less: Valuation allowance | 753 | 1,017 | $ 1,424 | $ 1,372 |
Real estate owned, net | $ 2,493 | $ 2,568 |
REAL ESTATE OWNED (Details 2)
REAL ESTATE OWNED (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Real Estate Owned Valuation Allowance [Roll Forward] | |||
Valuation allowance, beginning | $ 1,017 | $ 1,424 | $ 1,372 |
Provision charged to expense | 98 | 292 | 655 |
Reduction due to disposal | (362) | (699) | (603) |
Valuation allowance, ending | 753 | 1,017 | $ 1,424 |
Real estate acquired through foreclosure | 3,246 | $ 3,585 | |
Residential Real Estate [Member] | |||
Real Estate Owned Valuation Allowance [Roll Forward] | |||
Real estate acquired through foreclosure | $ 200 |
BANK OWNED LIFE INSURANCE (BO_3
BANK OWNED LIFE INSURANCE (BOLI) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Bank Owned Life Insurance Boli Details Abstract | ||
Separate account | $ 2,535 | $ 2,504 |
General account | 19,004 | 18,491 |
Hybrid | 11,347 | 11,155 |
Bank owned life insurance | $ 32,886 | $ 32,150 |
LOAN SERVICING (Details)
LOAN SERVICING (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Loan Servicing Details Abstract | |||
Unpaid principal balance of mortgage loans serviced for others | $ 284,091 | $ 276,782 | $ 264,264 |
LOAN SERVICING (Details 2)
LOAN SERVICING (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Loan Servicing Details 2Abstract | |||
Loan servicing rights, beginning of period | $ 2,756 | $ 2,603 | $ 2,344 |
Capitalization from loans sold | 433 | 618 | 604 |
Fair value adjustment | (352) | (465) | (345) |
Loan servicing rights, end of period | 2,837 | 2,756 | $ 2,603 |
Escrow deposits | $ 200 | $ 500 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill And Other Intangible Assets | ||
Balance at beginning of period | $ 23,903 | $ 2,065 |
Prior acquisitions measurement period adjustments | 63 | |
Goodwill from current year acquisitions | 21,775 | |
Balance at end of period | $ 23,903 | $ 23,903 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Gross carrying amount at beginning of period | $ 4,840 | $ 1,120 |
Additions from acquisitions during the period | 3,720 | |
Gross balance at end of period | 4,840 | 4,840 |
Accumulated amortization | (1,263) | (571) |
Finite Lived Core Deposits Net | 3,577 | $ 4,269 |
Amortization expense | $ 700 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Interest rate swap | $ (3,424) | $ (23) | $ (5,456) | $ (1,736) | |
Interest Expense | 13,289 | 7,684 | $ 6,032 | ||
Designated as Hedging Instrument [Member] | |||||
Asset derivatives, Fair value | [1] | 354 | 561 | ||
Liability derivatives, Fair value | [1] | 462 | |||
Designated as Hedging Instrument [Member] | Interest rate swaps [Member] | |||||
Asset derivatives, Fair value | [1] | 354 | 561 | ||
Liability derivatives, Fair value | [1] | 462 | |||
Not Designated as Hedging Instrument [Member] | |||||
Asset derivatives, Fair value | [1] | 34 | $ 73 | ||
Liability derivatives, Fair value | [1] | $ 22 | |||
[1] | All derivative assets are located in "Other assets" on the consolidated balance sheets and all derivative liabilities are located in "Other liabilities" on the consolidated balance sheets. |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest Income | $ 62,614 | $ 50,529 | $ 40,520 |
Interest Expenses | 13,289 | 7,684 | 6,032 |
Fair Value Hedging Relationships [Member] | Hedged Assets [Member] | |||
Interest Income | 245 | ||
Fair Value Hedging Relationships [Member] | Interest Rate Swap - Derivatives Designated As Hedging Instruments [Member] | |||
Interest Income | (313) | ||
Cash Flow Hedging Relationships [Member] | Interest Rate Swap - Accumulated Other Comprehensive Loss Into Income [Member] | |||
Interest Expenses | $ (431) | $ (14) | $ 32 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Details 3) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Loan Receivable | $ 1,076,069 | $ 1,005,139 |
Hedged Assets [Member] | ||
Loan Receivable | 100,519 | |
Hedged Assets [Member] | Fair Value Hedging Relationships [Member] | ||
Loan Receivable | $ 245 |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Details 4) - Junior Subordinated Debt [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Notional Amount | $ 14,000 |
Fixed Interest Rate | 0.958% |
Underlying Rate | 3 month LIBOR |
Life of Swap Contract | 4 years |
Notional Amount | $ 14,000 |
Fixed Interest Rate | 3.02% |
Underlying Rate | 3 month LIBOR |
Life of Swap Contract | 3 years |
DERIVATIVE FINANCIAL INSTRUME_7
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Details 5) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Derivative Financial Instruments And Hedging Activities Details 5Abstract | |||
Amount of gain (loss) recognized in AOCI on derivatives | $ 2 | $ 99 | $ 444 |
Amount of gain (loss) reclassified from AOCI into income | (431) | (14) | 32 |
Amount of gain (loss) recognized in consolidated statement of comprehensive income | $ 429 | $ 85 | $ 476 |
DERIVATIVE FINANCIAL INSTRUME_8
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Details 6) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Amount of gain (loss) recognized in income | $ (67) | $ 13 | $ 14 |
Interest Rate Lock Commitments [Member] | |||
Amount of gain (loss) recognized in income | (12) | 4 | 11 |
Forward Sales Commitments [Member] | |||
Amount of gain (loss) recognized in income | (55) | 9 | $ 3 |
Residential Real Estate [Member] | Interest Rate Lock Commitments [Member] | |||
Fair value Derivative Assets and Liabilities | 1,627 | 5,705 | |
Residential Real Estate [Member] | Forward Sales Commitments [Member] | |||
Fair value Derivative Assets and Liabilities | $ 3,500 | $ 5,705 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Deposits By Type [Line Items] | |||
Balance | $ 1,221,240 | $ 1,162,177 | $ 830,013 |
Interest Expense | 8,118 | 4,474 | 3,964 |
Noninterest-bearing demand [Member] | |||
Deposits By Type [Line Items] | |||
Balance | 184,404 | 179,457 | 139,136 |
Interest Expense | |||
Interest-bearing Deposits [Member] | |||
Deposits By Type [Line Items] | |||
Balance | 209,085 | 226,718 | 122,271 |
Interest Expense | 374 | 228 | 160 |
Money Market Funds [Member] | |||
Deposits By Type [Line Items] | |||
Balance | 356,086 | 308,767 | 239,387 |
Interest Expense | 2,637 | 1,022 | 770 |
Savings Deposits [Member] | |||
Deposits By Type [Line Items] | |||
Balance | 50,716 | 50,500 | 40,014 |
Interest Expense | 59 | 53 | 49 |
Time deposit [Member] | |||
Deposits By Type [Line Items] | |||
Balance | 420,949 | 396,735 | 289,205 |
Interest Expense | $ 5,048 | $ 3,171 | $ 2,985 |
DEPOSITS (Details 2)
DEPOSITS (Details 2) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Deposits Details 3Abstract | ||
Wholesale money market | $ 5,030 | $ 2,020 |
Wholesale time deposits | 70,978 | 39,105 |
Total | 76,008 | $ 41,125 |
2019 | 226,307 | |
2020 | 54,539 | |
2021 | 66,371 | |
2022 | 22,047 | |
2023 | 22,435 | |
Thereafter | 29,250 | |
Deposits | $ 420,949 |
DEPOSITS (Details 3)
DEPOSITS (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Deposits Details 3Abstract | |||
Time deposit premium, beginning of period | $ 1,102 | $ 420 | $ 30 |
Additional premium for acquisitions | 1,534 | 648 | |
Accretion | (945) | (852) | (258) |
Time deposit premium, end of period | $ 157 | $ 1,102 | $ 420 |
DEPOSITS (Details Narrative)
DEPOSITS (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Deposits Details 3Abstract | ||
Time Deposits, $250,000 or More | $ 57,900 | $ 55,800 |
Deposits from Related Parties | $ 1,900 | $ 1,600 |
BORROWINGS (Details)
BORROWINGS (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Balance | $ 213,500 | $ 223,500 |
Type | Fixed | |
Rate | 2.58% | 1.48% |
Maturity 1/7/2019 | ||
Balance | $ 5,000 | |
Type | Fixed | |
Rate | 2.26% | |
Maturity 2/7/2019 | ||
Balance | $ 25,000 | |
Type | Fixed | |
Rate | 2.33% | |
Maturity 2/8/2019 | ||
Balance | $ 20,000 | |
Type | Fixed | |
Rate | 2.49% | |
Maturity 4/3/2019 | ||
Balance | $ 5,000 | |
Type | Fixed | |
Rate | 2.34% | |
Maturity 4/5/2019 | ||
Balance | $ 20,000 | |
Type | Fixed | |
Rate | 2.54% | |
Maturity 5/13/2019 | ||
Balance | $ 1,000 | $ 1,000 |
Type | Fixed | Fixed |
Rate | 1.62% | 1.62% |
Maturity 5/28/2019 | ||
Balance | $ 25,000 | |
Type | Fixed | |
Rate | 2.67% | |
Maturity 6/12/2019 | ||
Balance | $ 2,000 | $ 2,000 |
Type | Fixed | Fixed |
Rate | 1.53% | 1.53% |
Maturity 7/2/2019 | ||
Balance | $ 5,000 | |
Type | Fixed | |
Rate | 2.54% | |
Maturity 8/26/2019 | ||
Balance | $ 25,000 | |
Type | Fixed | |
Rate | 2.82% | |
Maturity 9/30/2019 | ||
Balance | $ 10,000 | |
Type | Fixed | |
Rate | 2.68% | |
Maturity 11/26/2019 | ||
Balance | $ 10,500 | |
Type | Fixed | |
Rate | 2.79% | |
Maturity 12/30/2019 | ||
Balance | $ 10,000 | $ 10,000 |
Type | Fixed | Fixed |
Rate | 2.12% | 2.12% |
Maturity 12/30/2019 | ||
Balance | $ 5,000 | $ 5,000 |
Type | Fixed | Fixed |
Rate | 2.12% | 2.12% |
Maturity 1/2/2020 | ||
Balance | $ 5,000 | |
Type | Fixed | |
Rate | 2.67% | |
Maturity 3/30/2020 | ||
Balance | $ 15,000 | |
Type | Fixed | |
Rate | 2.88% | |
Maturity 5/26/2020 | ||
Balance | $ 10,000 | |
Type | Fixed | |
Rate | 2.89% | |
Maturity 6/29/2020 | ||
Balance | $ 10,000 | |
Type | Fixed | |
Rate | 2.68% | |
Maturity 12/31/2020 | ||
Balance | $ 5,000 | |
Type | Fixed | |
Rate | 2.72% | |
Maturity 01/05/2018 [Member] | ||
Balance | $ 5,000 | |
Type | Fixed | |
Rate | 1.29% | |
Maturity 02/08/2018 [Member] | ||
Balance | $ 20,000 | |
Type | Fixed | |
Rate | 1.37% | |
Maturity 05/24/2018 [Member] | ||
Balance | $ 20,500 | |
Type | Floating | |
Rate | 1.48% | |
Maturity 03/29/2018 [Member] | ||
Balance | $ 15,000 | |
Type | Floating | |
Rate | 1.60% | |
Maturity 04/02/2018 [Member] | ||
Balance | $ 5,000 | |
Type | Fixed | |
Rate | 1.29% | |
Maturity 04/16/2018 [Member] | ||
Balance | $ 20,000 | |
Type | Fixed | |
Rate | 1.37% | |
Maturity 05/07/2018 [Member] | ||
Balance | $ 25,000 | |
Type | Fixed | |
Rate | 1.36% | |
Maturity 5/24/2018 | ||
Balance | $ 50,000 | |
Type | Fixed | |
Rate | 1.59% | |
Maturity 06/05/2018 [Member] | ||
Balance | $ 5,000 | |
Type | Fixed | |
Rate | 1.26% | |
Maturity 06/06/2018 [Member] | ||
Balance | $ 5,000 | |
Type | Fixed | |
Rate | 1.39% | |
Maturity 06/29/2018 [Member] | ||
Balance | $ 10,000 | |
Type | Fixed | |
Rate | 0.84% | |
Maturity 07/02/2018 [Member] | ||
Balance | $ 5,000 | |
Type | Fixed | |
Rate | 1.40% | |
Maturity 7/2/2018 | ||
Balance | $ 5,000 | |
Type | Fixed | |
Rate | 1.38% | |
Maturity 09/28/2018 [Member] | ||
Balance | $ 10,000 | |
Type | Fixed | |
Rate | 1.52% | |
Maturity 12/31/2018 [Member] | ||
Balance | $ 5,000 | |
Type | Fixed | |
Rate | 1.51% |
BORROWINGS (Details 2)
BORROWINGS (Details 2) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Federal Home Loan Bank, Advances [Abstract] | ||
2019 | $ 168,500 | |
2020 | 45,000 | |
Total | $ 213,500 | $ 223,500 |
Federal Home Loan Bank, Advances, Weighted Average Rate [Abstract] | ||
2019 | 2.52% | |
2020 | 2.80% | |
Total | 2.58% | 1.48% |
JUNIOR SUBORDINATED DEBT (Detai
JUNIOR SUBORDINATED DEBT (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Junior subordinated notes | $ 14,433 | $ 14,433 |
Junior Subordinated Debt [Member] | ||
Debt Instrument [Line Items] | ||
Junior subordinated notes | $ 14,433 | |
Debt instrument, interest rate | 3.76% | 3.76% |
Debt instrument, maturity date | Mar. 30, 2034 | |
Debt redemption price percentage | 100.00% | |
Junior Subordinated Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 2.80% |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Benefit Plans | |||
Defined Contribution Plan, Contributions by Employer | $ 600 | $ 600 | $ 500 |
POST-EMPLOYMENT BENEFITS (Detai
POST-EMPLOYMENT BENEFITS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan, Liabilities | $ 9,305 | $ 10,174 | |
Expense related to Defined Benefit Plan | 300 | 600 | $ 800 |
Supplemental Employee Retirement Plan [Member] | |||
Defined Benefit Plan, Liabilities | 4,116 | 4,288 | |
Cap Equity [Member] | |||
Defined Benefit Plan, Liabilities | 4,148 | 4,708 | |
Director Consultation [Member] | |||
Defined Benefit Plan, Liabilities | 177 | 246 | |
Life Insurance [Member] | |||
Defined Benefit Plan, Liabilities | $ 864 | $ 932 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Share-based Compensation Arrangement Options, Outstanding | 433,300 | |
Option Exercisable | 218,660 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||
Weighted Average Exercise Price of Options Outstanding | $ 19.11 | |
Weighted Average Exercise Price of Options Exercisable | $ 18.72 | |
Weighted Avg. Remaining Years Contractual Life (in years) | 7 years 5 months 16 days | |
Restricted Stock [Member] | ||
Maximum number of shares to be awarded under plan | 196,391 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Share-based Compensation Arrangement Options, Outstanding | 125,200 | 145,580 |
Granted | 26,500 | 18,600 |
Exercised | (36,480) | (33,780) |
Forfeited or expired | (3,060) | (5,200) |
Share-based Compensation Arrangement Options, Outstanding | 112,160 | 125,200 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||
Weighted Average Exercise Price of Options Outstanding | $ 19.44 | $ 18.36 |
Granted | 27.42 | 25.76 |
Exercised | 19.13 | 18.39 |
Forfeited, exchanged or expired | 18.55 | 18.55 |
Weighted Average Exercise Price of Options Outstanding | $ 21.45 | $ 19.44 |
Employee Stock Option [Member] | ||
Maximum number of shares to be awarded under plan | 458,246 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Share-based Compensation Arrangement Options, Outstanding | 433,300 | 407,200 |
Granted | 57,000 | 40,900 |
Exercised | (11,100) | (3,600) |
Forfeited or expired | (7,140) | (11,200) |
Share-based Compensation Arrangement Options, Outstanding | 472,060 | 433,300 |
Option Exercisable | 218,660 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||
Weighted Average Exercise Price of Options Outstanding | $ 19.11 | $ 18.41 |
Granted | 27.43 | 25.92 |
Exercised | 18.49 | 18.55 |
Forfeited, exchanged or expired | 18.55 | 18.55 |
Weighted Average Exercise Price of Options Outstanding | 20.14 | $ 19.11 |
Weighted Average Exercise Price of Options Exercisable | $ 18.72 | |
Weighted Avg. Remaining Years Contractual Life (in years) | 7 years 5 months 16 days | |
Aggregate Intrinsic Value of Options Outstanding | $ 881 | |
Weighted Average Remaining Contractual Term - Vested and Expected to Vest (in years) | 7 years 14 days | |
Intrinsic Value of Option Exercisable | $ 446 |
SHARE-BASED COMPENSATION (Det_2
SHARE-BASED COMPENSATION (Details 2) | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share-based Compensation Arrangement Options, Outstanding | shares | 433,300 |
Weighted Average Exercise Price of Options Outstanding | $ / shares | $ 19.11 |
Weighted Avg. Remaining Years Contractual Life (in years) | 7 years 5 months 16 days |
Option Exercisable | shares | 218,660 |
Weighted Average Exercise Price of Options Exercisable | $ / shares | $ 18.72 |
Employee Stock Option [Member] | |
Share-based Compensation Arrangement Options, Outstanding | shares | 472,060 |
Weighted Average Exercise Price of Options Outstanding | $ / shares | $ 20.14 |
Weighted Avg. Remaining Years Contractual Life (in years) | 7 years 5 months 16 days |
Option Exercisable | shares | 218,660 |
Weighted Average Exercise Price of Options Exercisable | $ / shares | $ 18.72 |
Employee Stock Option [Member] | $ 16.00-17.00 | |
Share-based Compensation Arrangement Options, Outstanding | shares | 5,000 |
Weighted Average Exercise Price of Options Outstanding | $ / shares | $ 16.75 |
Weighted Avg. Remaining Years Contractual Life (in years) | 7 years 1 month 20 days |
Option Exercisable | shares | 2,000 |
Weighted Average Exercise Price of Options Exercisable | $ / shares | $ 16.75 |
Employee Stock Option [Member] | $ 17.01-18.00 | |
Share-based Compensation Arrangement Options, Outstanding | shares | 40,500 |
Weighted Average Exercise Price of Options Outstanding | $ / shares | $ 17.45 |
Weighted Avg. Remaining Years Contractual Life (in years) | 7 years 4 months 28 days |
Option Exercisable | shares | 16,200 |
Weighted Average Exercise Price of Options Exercisable | $ / shares | $ 17.45 |
Employee Stock Option [Member] | $ 18.01-18.55 | |
Share-based Compensation Arrangement Options, Outstanding | shares | 346,900 |
Weighted Average Exercise Price of Options Outstanding | $ / shares | $ 18.54 |
Weighted Avg. Remaining Years Contractual Life (in years) | 6 years 11 months 12 days |
Option Exercisable | shares | 192,280 |
Weighted Average Exercise Price of Options Exercisable | $ / shares | $ 18.54 |
Employee Stock Option [Member] | $ 18.56-25.00 | |
Share-based Compensation Arrangement Options, Outstanding | shares | 29,000 |
Weighted Average Exercise Price of Options Outstanding | $ / shares | $ 24.02 |
Weighted Avg. Remaining Years Contractual Life (in years) | 8 years 6 months 18 days |
Option Exercisable | shares | 5,800 |
Weighted Average Exercise Price of Options Exercisable | $ / shares | $ 24.02 |
Employee Stock Option [Member] | $ 25.01-30.55 | |
Share-based Compensation Arrangement Options, Outstanding | shares | 11,900 |
Weighted Average Exercise Price of Options Outstanding | $ / shares | $ 30.55 |
Weighted Avg. Remaining Years Contractual Life (in years) | 9 years 5 months 23 days |
Option Exercisable | shares | 2,380 |
Weighted Average Exercise Price of Options Exercisable | $ / shares | $ 30.55 |
SHARE-BASED COMPENSATION (Det_3
SHARE-BASED COMPENSATION (Details 3) - Employee Stock Option [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Valuation and related assumption for option program | ||
Fair value per option | $ 6.29 | $ 5.30 |
Expected life (in years) | 6 years 6 months | 6 years 6 months |
Expected stock price volatility | 13.91% | 13.40% |
Expected dividend yield | 0.00% | 0.00% |
Risk-free interest rate | 2.82% | 2.19% |
Expected forfeiture rate | 0.00% | 0.00% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Income Taxes Details Abstract | |||
Current - Federal | $ 469 | $ 365 | $ 549 |
Current - State | 323 | 66 | 24 |
Deferred - Federal | 2,195 | 6,729 | 2,370 |
Deferred - State | 140 | 368 | 552 |
Income tax expense (benefit) | $ 3,127 | $ 7,528 | $ 3,495 |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Income Taxes Details Abstract | |||
Computed income tax expense (benefit) | $ 3,579 | $ 3,537 | $ 3,455 |
State income tax, net of federal benefit | 365 | 282 | 218 |
Nontaxable municipal security income | (622) | (1,036) | (544) |
Nontaxable BOLI income | (183) | (243) | (107) |
Change in federal and state rates applied to deferreds | 13 | 4,871 | 353 |
Low income housing tax credit investments | (76) | (44) | |
Other | 51 | 161 | 120 |
Income tax expense (benefit) | $ 3,127 | $ 7,528 | $ 3,495 |
Effective tax rate | 18.30% | 74.50% | 35.40% |
INCOME TAXES (Details 3)
INCOME TAXES (Details 3) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Allowance for loan losses | $ 2,703 | $ 2,356 |
Deferred compensation and post employment benefits | 1,854 | 1,993 |
Non-accrual interest | 245 | 204 |
Valuation reserve for other real estate | 191 | 346 |
North Carolina NOL carryover | 293 | 475 |
Federal NOL carryover | 1,231 | 3,507 |
AMT credit carryforward | 316 | 645 |
General federal business credit carryover | 691 | |
Unrealized losses on securities | 1,061 | 149 |
Loan basis differences | 50 | 77 |
Deposit premium | 104 | |
Fixed assets | 123 | 63 |
Core deposit intangible | 129 | 52 |
Investment in partnerships | 9 | |
Other | 1,207 | 1,000 |
Total deferred tax assets | 10,094 | 10,980 |
Deferred tax liabilities: | ||
Loan servicing rights | 653 | 620 |
Goodwill | 495 | 126 |
Core deposit intangible | 74 | 89 |
Deferred loan costs | 1,001 | 757 |
Prepaid expenses | 14 | 31 |
Unrealized gains on securities | 105 | 377 |
Derivative instruments | 29 | 128 |
Investment in partnerships | 155 | |
Other | 17 | 21 |
Total deferred tax liabilities | 2,543 | 2,149 |
Net deferred tax asset | $ 7,551 | $ 8,831 |
INCOME TAXES (Details 4)
INCOME TAXES (Details 4) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Federal [Member] | |
Unused Net Operating Losses | $ 5,857 |
Federal [Member] | Minimum [Member] | |
Expiration Dates | 2031 |
Federal [Member] | Maximum [Member] | |
Expiration Dates | 2037 |
North Carolina [Member] | |
Unused Net Operating Losses | $ 14,969 |
North Carolina [Member] | Minimum [Member] | |
Expiration Dates | 2026 |
North Carolina [Member] | Maximum [Member] | |
Expiration Dates | 2029 |
Federal general business credit [Member] | |
Unused Net Operating Losses | $ 691 |
Federal general business credit [Member] | Minimum [Member] | |
Expiration Dates | 2037 |
Federal general business credit [Member] | Maximum [Member] | |
Expiration Dates | 2038 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net income | $ 13,915 | $ 2,579 | $ 6,376 |
Weighted average shares outstanding | 6,892,207 | 6,561,699 | 6,477,284 |
Effect of dilutive stock options | 72,783 | 54,248 | |
Effect of dilutive restricted stock units | 42,935 | 42,667 | |
Average shares outstanding | 7,007,925 | 6,658,614 | 6,489,931 |
Earnings per share - basic | $ 2.02 | $ 0.39 | $ 0.98 |
Earnings per share - diluted | 1.99 | 0.39 | $ 0.98 |
Equity Option [Member] | |||
Average Stock Price | $ 26.98 | $ 24.30 | |
Anti-Dilutaive Shares | 40,073 | 11,900 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Balance, beginning of period | $ (23) | $ (5,456) | $ (1,736) |
Change in deferred tax valuation allowance attributable to unrealized (gain) loss on investment securities available for sale | 202 | 377 | |
Change in unrealized holding gain (loss) on securities available for sale | (4,956) | 6,347 | (6,652) |
Reclassification adjustment for net securities gains realized in net income | 970 | 1,102 | (1,216) |
Reclassification adjustment for other then temporary impairment of securities available for sale | 757 | ||
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 | 578 | ||
Reduction in unrealized loss related to held to maturity securities transferred to available-for-sale | 325 | ||
Change in unrealized holding gains and losses on cash flow hedge | 2 | 99 | 444 |
Reclassification adjustment for cash flow hedge effectiveness | (431) | (14) | 32 |
Cumulative effect of change in accounting principle | 9 | ||
Income tax benefit (expense) | 1,005 | (3,060) | 2,392 |
Balance, end of period | (3,424) | (23) | (5,456) |
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 | 202 | 377 | |
Change in unrealized holding gain (loss) on securities available for sale | |||
Reclassification adjustment for net securities gains realized in net income | |||
Amortization of unrealized gains and losses on securities transferred to held to maturity | |||
Reduction in unrealized loss related to held to maturity securities transferred to available-for-sale | |||
Balance, end of period | (202) | ||
Available-for-sale Securities [Member] | |||
Balance, beginning of period | (455) | (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 | (4,956) | 6,347 | (6,652) |
Reclassification adjustment for net securities gains realized in net income | 970 | 1,102 | (1,216) |
Reclassification adjustment for other then temporary impairment of securities available for sale | 757 | ||
Amortization of unrealized gains and losses on securities transferred to held to maturity | |||
Reduction in unrealized loss related to held to maturity securities transferred to available-for-sale | |||
Cumulative effect of change in accounting principle | 9 | ||
Income tax benefit (expense) | 904 | (3,107) | 2,908 |
Balance, end of period | (3,528) | (455) | (5,554) |
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 | |||
Amortization of unrealized gains and losses on securities transferred to held to maturity | 578 | ||
Reduction in unrealized loss related to held to maturity securities transferred to available-for-sale | 325 | ||
Income tax benefit (expense) | (340) | ||
Balance, end of period | |||
Cash Flow Hedge [Member] | |||
Balance, beginning of period | 432 | 300 | |
Change in unrealized holding gains and losses on cash flow hedge | 2 | 99 | 444 |
Reclassification adjustment for cash flow hedge effectiveness | (431) | (14) | 32 |
Income tax benefit (expense) | 101 | 47 | (176) |
Balance, end of period | $ 104 | $ 432 | $ 300 |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification adjustment for other then temporary impairment of securities available for sale | $ (757) | ||
Reduction in unrealized loss related to held to maturity securities transferred to available-for-sale | 325 | ||
Interest expense - Junior subordinated notes | (562) | (557) | (532) |
Held-to-maturity Securities [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Before tax | (578) | ||
Reduction in unrealized loss related to held to maturity securities transferred to available-for-sale | 325 | ||
Tax effect | 340 | ||
Impact, net of tax | (563) | ||
Cash Flow Hedge [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest expense - FHLB advances | (257) | (20) | (16) |
Interest expense - Junior subordinated notes | (174) | 34 | (16) |
Tax effect | 91 | 5 | 12 |
Impact, net of tax | (340) | 19 | (20) |
Valuation Allowance of Deferred Tax [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Impact, net of tax | 202 | 377 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Impact, net of tax | (1,106) | (960) | 561 |
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 | (970) | (1,102) | 1,216 |
Reclassification adjustment for other then temporary impairment of securities available for sale | (757) | ||
Tax effect | 204 | 678 | (449) |
Impact, net of tax | $ (766) | $ (1,181) | $ 767 |
REGULATORY MATTERS (Details)
REGULATORY MATTERS (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | ||
Bank [Member] | ||||
Tier I capital to total average assets, Actual Amount | $ 152,137 | $ 136,280 | ||
Tier I capital to total average assets, Actual Percent | 9.42% | 8.79% | ||
Tier I capital to total average assets, Minimum capital adequacy Amount | $ 64,589 | $ 61,994 | ||
Tier I capital to total average assets, Minimum capital adequacy Percent | [1] | 4.00% | 4.00% | |
Tier I capital to total average assets, Required to be Categorized Well Capitalized, Amount | $ 80,737 | $ 77,492 | ||
Tier I capital to total average assets, Required to be Categorized Well Capitalized, Percent | 5.00% | 5.00% | ||
CET1 capital to risk-weighted assets, Actual Amount | $ 152,137 | $ 136,280 | ||
CET1 capital to risk-weighted assets, Actual Percent | 12.92% | 11.92% | ||
CET1 capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Amount | $ 75,046 | $ 65,729 | ||
CET1 capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Percent | [1] | 6.375% | 5.75% | |
CET1 capital to risk-weighted assets, Required to be Categorized Well Capitalized, Amount | $ 76,517 | $ 74,303 | ||
CET1 capital to risk-weighted assets, Required to be Categorized Well Capitalized, Percent | 6.50% | 6.50% | ||
Tier I capital to risk-weighted assets, Actual Amount | $ 152,137 | $ 136,280 | ||
Tier I capital to risk-weighted assets, Actual Percent | 12.92% | 11.92% | ||
Tier I capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Amount | $ 92,703 | $ 82,876 | ||
Tier I capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Percent | [1] | 7.875% | 7.25% | |
Tier I capital to risk-weighted assets, Required to meet Memorandum of Understanding, Amount | $ 94,175 | $ 91,450 | ||
Tier I capital to risk-weighted assets, Required to meet Memorandum of Understanding, Percent | 8.00% | 8.00% | ||
Total Capital to risk-weighted assets, Actual Amount | $ 164,222 | $ 147,266 | ||
Total Capital to risk-weighted assets, Actual Percent | 13.95% | 12.88% | ||
Total Capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Amount | $ 116,247 | $ 105,739 | ||
Total Capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Percent | [1] | 9.875% | 9.25% | |
Total Capital to risk-weighted assets, Required to be Categorized Well Capitalized, Amount | $ 117,719 | $ 114,312 | ||
Total Capital to risk-weighted assets, Required to be Categorized Well Capitalized, Percent | 10.00% | 0.10% | ||
Parent Company [Member] | ||||
Tier I capital to total average assets, Actual Amount | $ 151,629 | $ 134,470 | ||
Tier I capital to total average assets, Actual Percent | 9.38% | 8.68% | ||
Tier I capital to total average assets, Minimum capital adequacy Amount | $ 64,629 | $ 61,967 | ||
Tier I capital to total average assets, Minimum capital adequacy Percent | 4.00% | 4.00% | [1] | |
CET1 capital to risk-weighted assets, Actual Amount | $ 137,196 | $ 120,861 | ||
CET1 capital to risk-weighted assets, Actual Percent | 11.65% | 10.57% | ||
CET1 capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Amount | $ 75,106 | $ 65,775 | ||
CET1 capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Percent | [1] | 6.375% | 5.75% | |
Tier I capital to risk-weighted assets, Actual Amount | $ 151,629 | $ 134,470 | ||
Tier I capital to risk-weighted assets, Actual Percent | 12.87% | 11.76% | ||
Tier I capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Amount | $ 92,777 | $ 82,934 | ||
Tier I capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Percent | [1] | 7.875% | 7.25% | |
Total Capital to risk-weighted assets, Actual Amount | $ 163,714 | $ 145,457 | ||
Total Capital to risk-weighted assets, Actual Percent | 13.90% | 12.72% | ||
Total Capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Amount | $ 116,340 | $ 105,812 | ||
Total Capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Percent | [1] | 9.875% | 9.25% | |
[1] | As of December 31, 2018, includes capital conservation buffer of 1.875%. On a fully phased in basis, effective January 1, 2019, under Basel III, minimum capital ratios to be considered "adequately capitalized" including the capital conservation buffer of 2.5% will be as follows: Tier 1 Leverage Capital - 4.0%; Common Equity Tier 1 Capital - 7.0%; Tier 1 Risk-based Capital - 8.5%; and Total Risk-based Capital - 10.5%. |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Other Commitments [Line Items] | |
Commitments to fund lines of credit | $ 180,174 |
Lines of credit [Member] | |
Other Commitments [Line Items] | |
Commitments to fund lines of credit | 179,210 |
Standby Letters of Credit [Member] | |
Other Commitments [Line Items] | |
Commitments to fund lines of credit | $ 964 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details 2) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Fixed | $ 19,758 |
Variable | 7,338 |
Total | $ 27,096 |
Minimum [Member] | |
Fixed (as a percent) | 4.50% |
Variable (as a percent) | 4.74% |
Maximum [Member] | |
Fixed (as a percent) | 7.99% |
Variable (as a percent) | 8.00% |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Mortgage Loans Sold to Federal National Mortgage Association[Member] | ||
Loss Contingencies [Line Items] | ||
Obligation for representations and warranties, reserve | $ 300 | $ 300 |
Commitments to Extend Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Allowance for unfunded commitments | $ 100 | $ 100 |
FAIR VALUE DISCLOSURES (Details
FAIR VALUE DISCLOSURES (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | $ 371,572 | $ 352,348 |
Liabilities measured at fair value on recurring basis | 484 | |
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 | 2,837 | 2,756 |
Mortgage Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 34 | 73 |
Liabilities measured at fair value on recurring basis | 22 | |
Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 354 | 561 |
Liabilities measured at fair value on recurring basis | 462 | |
Mortgage loans held for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 2,431 | |
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 | 11,127 | 9,208 |
Liabilities measured at fair value on recurring basis | ||
Fair Value, Inputs, Level 1 [Member] | Loan Servicing Rights [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | ||
Fair Value, Inputs, Level 1 [Member] | Mortgage Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | ||
Liabilities measured at fair value on recurring basis | ||
Fair Value, Inputs, Level 1 [Member] | Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | ||
Liabilities measured at fair value on recurring basis | ||
Fair Value, Inputs, Level 1 [Member] | Mortgage loans held for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | ||
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 | 354,650 | 339,819 |
Liabilities measured at fair value on recurring basis | 462 | |
Fair Value, Inputs, Level 2 [Member] | Loan Servicing Rights [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | ||
Fair Value, Inputs, Level 2 [Member] | Mortgage Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | ||
Liabilities measured at fair value on recurring basis | ||
Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 354 | 561 |
Liabilities measured at fair value on recurring basis | 462 | |
Fair Value, Inputs, Level 2 [Member] | Mortgage loans held for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | ||
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 5,795 | 3,321 |
Liabilities measured at fair value on recurring basis | 22 | |
Fair Value, Inputs, Level 3 [Member] | Loan Servicing Rights [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 2,837 | 2,756 |
Fair Value, Inputs, Level 3 [Member] | Mortgage Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 34 | 73 |
Liabilities measured at fair value on recurring basis | 22 | |
Fair Value, Inputs, Level 3 [Member] | Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | ||
Liabilities measured at fair value on recurring basis | ||
Fair Value, Inputs, Level 3 [Member] | Mortgage loans held for sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 2,431 | |
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 | 6,178 | 6,095 |
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 | 6,178 | 6,095 |
Trading account 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 | ||
Trading account assets [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 | ||
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 | 359,738 | 342,863 |
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 | 33,990 | 20,523 |
Available-for-sale Securities [Member] | Municipal Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 114,402 | 93,859 |
Available-for-sale Securities [Member] | Mortgage-backed Securities - Guaranteed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 85,184 | 128,039 |
Available-for-sale Securities [Member] | Collateralized Mortgage Obligations - Guaranteed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 21,889 | 10,302 |
Available-for-sale Securities [Member] | Collateralized Mortgage Obligations - Non Guaranteed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 69,171 | 64,693 |
Available-for-sale Securities [Member] | Collateralized Loan Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 15,077 | 5,539 |
Available-for-sale Securities [Member] | Corporate debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 20,025 | 19,291 |
Available-for-sale Securities [Member] | Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 617 | |
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 4,949 | 3,113 |
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 1 [Member] | U.S. Treasury securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 4,949 | 2,496 |
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Municipal Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | ||
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Mortgage-backed Securities - Guaranteed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | ||
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Collateralized Mortgage Obligations - Guaranteed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | ||
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Collateralized Mortgage Obligations - Non Guaranteed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | ||
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Collateralized Loan Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | ||
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Corporate debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | ||
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 617 | |
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 354,296 | 339,258 |
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 2 [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 | 29,041 | 18,027 |
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Municipal Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 114,402 | 93,859 |
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage-backed Securities - Guaranteed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 85,184 | 128,039 |
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Collateralized Mortgage Obligations - Guaranteed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 21,889 | 10,302 |
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Collateralized Mortgage Obligations - Non Guaranteed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 69,171 | 64,693 |
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Collateralized Loan Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 15,077 | 5,539 |
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 19,532 | 18,799 |
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | ||
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 493 | 492 |
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 3 [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 | ||
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Municipal Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | ||
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Mortgage-backed Securities - Guaranteed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | ||
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Collateralized Mortgage Obligations - Guaranteed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | ||
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Collateralized Mortgage Obligations - Non Guaranteed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | ||
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Collateralized Loan Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | ||
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Corporate debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | $ 493 | 492 |
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis |
FAIR VALUE DISCLOSURES (Detai_2
FAIR VALUE DISCLOSURES (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Fair Value Disclosures Details 2Abstract | ||
Balance at beginning of period | $ 3,321 | $ 4,807 |
Corporate bonds Fair value adjustment | 1 | 1 |
Corporate bonds Transfer to Level 2 | (1,087) | |
Corporate bonds Sold | (566) | |
Mortgage loans held for sale | 2,431 | |
Capitalization from loans sold | 433 | 618 |
Fair value adjustment | (352) | (465) |
Mortgage derivative gains included in Other income | (61) | 13 |
Balance at end of period | $ 5,773 | $ 3,321 |
FAIR VALUE DISCLOSURES (Detai_3
FAIR VALUE DISCLOSURES (Details 3) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets measured at fair value on nonrecurring basis | $ 371,572 | $ 352,348 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets measured at fair value on nonrecurring basis | 5,795 | 3,321 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Assets measured at fair value on nonrecurring basis | 7,821 | 9,768 |
Impaired loans measured at present value | 5,600 | 4,400 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets measured at fair value on nonrecurring basis | 7,821 | 9,768 |
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | One To Four Family Residential [Member] | ||
Assets measured at fair value on nonrecurring basis | 845 | 2,266 |
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Assets measured at fair value on nonrecurring basis | 3,835 | 4,050 |
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Home Equity Line of Credit [Member] | ||
Assets measured at fair value on nonrecurring basis | 283 | 313 |
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Other Portfolio Segment [Member] | ||
Assets measured at fair value on nonrecurring basis | 365 | 571 |
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 | 845 | 2,266 |
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 | 3,835 | 4,050 |
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 | 283 | 313 |
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 | 365 | 571 |
Fair Value, Measurements, Nonrecurring [Member] | Real Estate Owned [Member] | One To Four Family Residential [Member] | ||
Assets measured at fair value on nonrecurring basis | 228 | 288 |
Fair Value, Measurements, Nonrecurring [Member] | Real Estate Owned [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Assets measured at fair value on nonrecurring basis | 949 | 544 |
Fair Value, Measurements, Nonrecurring [Member] | Real Estate Owned [Member] | Other Portfolio Segment [Member] | ||
Assets measured at fair value on nonrecurring basis | 1,316 | 1,736 |
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 | 228 | 288 |
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 | 949 | 544 |
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 | $ 1,316 | $ 1,736 |
FAIR VALUE DISCLOSURES (Detai_4
FAIR VALUE DISCLOSURES (Details 4) | 12 Months Ended |
Dec. 31, 2018 | |
Impaired Loans [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Unobservable Input | Collateral discounts and estimated selling cost |
Valuation Technique | Discounted Appraisals |
Impaired Loans [Member] | Minimum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Collateral discounts and estimated selling cost | 0.00% |
Impaired Loans [Member] | Maximum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Collateral discounts and estimated selling cost | 30.00% |
Real Estate Owned [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Unobservable Input | Collateral discounts and estimated selling cost |
Valuation Technique | Discounted Appraisals |
Real Estate Owned [Member] | Minimum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Collateral discounts and estimated selling cost | 0.00% |
Real Estate Owned [Member] | Maximum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Collateral discounts and estimated selling cost | 30.00% |
Corporate Bond [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Unobservable Input | Recent trade pricing |
Valuation Technique | Discounted Cash Flows |
Corporate Bond [Member] | Minimum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Recent trade pricing | 0.00% |
Corporate Bond [Member] | Maximum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Recent trade pricing | 10.00% |
Loan Servicing Rights[Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Valuation Technique | Discounted Cash Flows |
Loan Servicing Rights[Member] | Minimum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Prepayment Speed | 8.00% |
Discount rate | 10.00% |
Loan Servicing Rights[Member] | Maximum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Prepayment Speed | 16.00% |
Discount rate | 14.00% |
Mortgage loans held for sale [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Unobservable Input | External pricing model |
Valuation Technique | Recent trade pricing |
Mortgage loans held for sale [Member] | Minimum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Recent trade pricing | 99.00% |
Mortgage loans held for sale [Member] | Maximum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Recent trade pricing | 101.00% |
Mortgage Derivatives [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Unobservable Input | External pricing model |
Valuation Technique | Pull-through rate |
Mortgage Derivatives [Member] | Minimum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Recent trade pricing | 78.00% |
Mortgage Derivatives [Member] | Maximum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Recent trade pricing | 100.00% |
SBIC Investments [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Unobservable Input | Current operations and financial condition |
Valuation Technique | Indicative value provided by fund |
FAIR VALUE DISCLOSURES (Detai_5
FAIR VALUE DISCLOSURES (Details 5) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets: | ||||
Cash and equivalents | $ 69,119 | $ 109,467 | $ 43,294 | $ 40,650 |
Trading securities | 6,178 | 6,095 | ||
Securities available for sale | 359,738 | 342,863 | ||
Loans held for sale | 7,570 | 3,845 | ||
Other investments, at cost | 12,039 | 12,386 | ||
Accrued interest receivable | 6,443 | 5,405 | ||
Bank owned life insurance | 32,886 | 32,150 | ||
Loan servicing rights | 2,837 | 2,756 | $ 2,603 | $ 2,344 |
Commitments | ||||
Liabilities: | ||||
Time deposits | 420,949 | |||
Federal Home Loan Bank advances | 213,500 | 223,500 | ||
Junior subordinated debentures | 14,433 | 14,433 | ||
Other borrowings | 9,299 | 8,623 | ||
Accrued interest payable | 1,647 | 935 | ||
Fair Value, Inputs, Level 1 [Member] | ||||
Assets: | ||||
Cash and equivalents | 69,119 | 109,467 | ||
Trading securities | 6,178 | 6,095 | ||
Securities available for sale | 4,949 | 3,113 | ||
Loans held for sale | ||||
Loans receivable, net | ||||
Other investments, at cost | ||||
Accrued 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] | ||||
Assets: | ||||
Cash and equivalents | ||||
Trading securities | ||||
Securities available for sale | 354,297 | 339,258 | ||
Loans held for sale | 5,683 | 4,211 | ||
Loans receivable, net | ||||
Other investments, at cost | 12,039 | 12,386 | ||
Accrued interest receivable | 6,443 | 5,405 | ||
Bank owned life insurance | 32,886 | 32,150 | ||
Loan servicing rights | ||||
Derivative asset | 561 | |||
SBIC investments | ||||
Liabilities: | ||||
Demand deposits | 800,291 | 765,442 | ||
Time deposits | ||||
Federal Home Loan Bank advances | 213,513 | 223,627 | ||
Junior subordinated debentures | 12,440 | 14,433 | ||
Other borrowings | 9,253 | 8,620 | ||
Accrued interest payable | 1,647 | 935 | ||
Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member] | ||||
Assets: | ||||
Derivative asset | 354 | |||
Liabilities: | ||||
Derivative Liabilities | 462 | |||
Fair Value, Inputs, Level 3 [Member] | ||||
Assets: | ||||
Cash and equivalents | ||||
Trading securities | ||||
Securities available for sale | 493 | 492 | ||
Loans held for sale | 2,431 | |||
Loans receivable, net | 1,046,136 | 992,993 | ||
Other investments, at cost | ||||
Accrued interest receivable | ||||
Bank owned life insurance | ||||
Loan servicing rights | 2,837 | 2,756 | ||
Derivative asset | ||||
SBIC investments | 3,839 | 3,491 | ||
Liabilities: | ||||
Demand deposits | ||||
Time deposits | 424,054 | 390,806 | ||
Federal Home Loan Bank advances | ||||
Junior subordinated debentures | ||||
Other borrowings | ||||
Accrued interest payable | ||||
Fair Value, Inputs, Level 3 [Member] | Mortgage Derivatives [Member] | ||||
Assets: | ||||
Commitments | 73 | |||
Derivative asset | 34 | |||
Liabilities: | ||||
Derivative Liabilities | 22 | |||
Reported Value Measurement [Member] | ||||
Assets: | ||||
Cash and equivalents | 69,119 | 109,467 | ||
Trading securities | 6,178 | 6,095 | ||
Securities available for sale | 359,739 | 342,863 | ||
Loans held for sale | 7,570 | 3,845 | ||
Loans receivable, net | 1,076,069 | 1,005,139 | ||
Other investments, at cost | 12,039 | 12,386 | ||
Accrued interest receivable | 6,443 | 5,405 | ||
Bank owned life insurance | 32,886 | 32,150 | ||
Loan servicing rights | 2,837 | 2,756 | ||
Derivative asset | 561 | |||
SBIC investments | 3,839 | 3,491 | ||
Liabilities: | ||||
Demand deposits | 800,291 | 765,442 | ||
Time deposits | 420,949 | 396,735 | ||
Federal Home Loan Bank advances | 213,500 | 223,500 | ||
Junior subordinated debentures | 14,433 | 14,433 | ||
Other borrowings | 9,299 | 8,623 | ||
Accrued interest payable | 1,647 | 935 | ||
Reported Value Measurement [Member] | Interest Rate Swap [Member] | ||||
Assets: | ||||
Derivative asset | 354 | |||
Liabilities: | ||||
Derivative Liabilities | 462 | |||
Reported Value Measurement [Member] | Mortgage Derivatives [Member] | ||||
Assets: | ||||
Commitments | 73 | |||
Derivative asset | 34 | |||
Liabilities: | ||||
Derivative Liabilities | 22 | |||
Fair Value Measurement [Member] | ||||
Assets: | ||||
Cash and equivalents | 69,119 | 109,467 | ||
Trading securities | 6,178 | 6,095 | ||
Securities available for sale | 359,739 | 342,863 | ||
Loans held for sale | 8,114 | 4,211 | ||
Loans receivable, net | 1,046,136 | 992,993 | ||
Other investments, at cost | 12,039 | 12,386 | ||
Accrued interest receivable | 6,443 | 5,405 | ||
Bank owned life insurance | 32,886 | 32,150 | ||
Loan servicing rights | 2,837 | 2,756 | ||
Derivative asset | 561 | |||
SBIC investments | 3,839 | 3,491 | ||
Liabilities: | ||||
Demand deposits | 800,291 | 765,442 | ||
Time deposits | 424,054 | 390,806 | ||
Federal Home Loan Bank advances | 213,513 | 223,627 | ||
Junior subordinated debentures | 12,440 | 14,433 | ||
Other borrowings | 9,253 | 8,620 | ||
Accrued interest payable | 1,647 | 935 | ||
Fair Value Measurement [Member] | Interest Rate Swap [Member] | ||||
Assets: | ||||
Derivative asset | 354 | |||
Liabilities: | ||||
Derivative Liabilities | 462 | |||
Fair Value Measurement [Member] | Mortgage Derivatives [Member] | ||||
Assets: | ||||
Commitments | $ 73 | |||
Derivative asset | 34 | |||
Liabilities: | ||||
Derivative Liabilities | $ 22 |
REVENUE RECOGNITION (Details)
REVENUE RECOGNITION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Noninterest Income | |||
Service Charges on Deposit Accounts | $ 1,673 | $ 1,672 | $ 1,537 |
Interchange fees | 1,102 | 913 | 732 |
Noninterest Income | 5,990 | 5,006 | 7,071 |
In-scope of Topic 606 [Member] | |||
Noninterest Income | |||
Service Charges on Deposit Accounts | 1,673 | 1,672 | 1,537 |
Interchange fees | 1,102 | 913 | 732 |
Other | 1,168 | 726 | 450 |
Noninterest Income | 3,943 | 3,311 | 2,719 |
Out-of-scope of Topic 606 [Member] | |||
Noninterest Income | |||
Noninterest Income | $ 2,047 | $ 1,695 | $ 4,352 |
SHARE REPURCHASES (Details)
SHARE REPURCHASES (Details) - $ / shares | 1 Months Ended | 12 Months Ended | |||||
Mar. 31, 2018 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Feb. 28, 2018 | Jan. 31, 2018 | Jan. 28, 2017 | |
Share Repurchases | |||||||
Number of Shares Authorized to be Repurchased | 327,318 | ||||||
Number of Shares Purchased | 13,000 | 13,000 | |||||
Average Price Paid per Share | $ 23.12 | $ 23.12 | |||||
Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | 209,750 | 209,750 | 209,750 | 209,750 | 222,750 | 222,750 |
PARENT COMPANY FINANCIAL INFO_3
PARENT COMPANY FINANCIAL INFORMATION - Condensed Statements of Financial Condition (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets: | ||||
Cash and cash equivalents | $ 69,119 | $ 109,467 | $ 43,294 | $ 40,650 |
Other assets | 7,799 | 5,055 | ||
Total assets | 1,636,441 | 1,581,449 | ||
Liabilities and stockholders' equity: | ||||
Junior subordinated notes | 14,433 | 14,433 | ||
Other borrowings | 9,299 | 8,623 | ||
Other liabilities | 4,145 | 10,294 | ||
Stockholders equity | 162,872 | 151,313 | $ 133,068 | $ 131,469 |
Total liabilities and stockholders' equity | 1,636,441 | 1,581,449 | ||
Parent Company [Member] | ||||
Assets: | ||||
Cash and cash equivalents | 4,382 | 3,244 | ||
Equity investment in subsidiary | 177,709 | 167,252 | ||
Equity investment in trust | 433 | 433 | ||
Other assets | 562 | 624 | ||
Total assets | 183,086 | 171,553 | ||
Liabilities and stockholders' equity: | ||||
Junior subordinated notes | 14,433 | 14,433 | ||
Other borrowings | 5,000 | 5,000 | ||
Other liabilities | 781 | 807 | ||
Stockholders equity | 162,872 | 151,313 | ||
Total liabilities and stockholders' equity | $ 183,086 | $ 171,553 |
PARENT COMPANY FINANCIAL INFO_4
PARENT COMPANY FINANCIAL INFORMATION - Condensed Statements of Operations (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Total income | $ 62,614 | $ 50,529 | $ 40,520 |
Interest expense | 13,289 | 7,684 | 6,032 |
Income (loss) before income taxes and equity in undistributed income of subsidiary | 17,042 | 10,107 | 9,871 |
Income tax expense (benefit) | 3,127 | 7,528 | 3,495 |
Net income | 13,915 | 2,579 | 6,376 |
Parent Company [Member] | |||
Interest income | 59 | 56 | 81 |
Dividends from subsidiary | 1,017 | 20,630 | 510 |
Total income | 1,076 | 20,686 | 591 |
Interest expense | 862 | 626 | 532 |
Other | 173 | 361 | 358 |
Total expenses | 1,035 | 987 | 890 |
Income (loss) before income taxes and equity in undistributed income of subsidiary | 41 | 19,699 | (299) |
Income tax expense (benefit) | 205 | 326 | 283 |
Income (loss) before equity in undistributed income (loss) of subsidiary | 246 | 20,025 | (16) |
Equity in undistributed income (loss) of subsidiary | 13,669 | (17,446) | 6,392 |
Net income | $ 13,915 | $ 2,579 | $ 6,376 |
PARENT COMPANY FINANCIAL INFO_5
PARENT COMPANY FINANCIAL INFORMATION - Condensed Statements of Cash Flows (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 13,915 | $ 2,579 | $ 6,376 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net cash provided by (used in) operating activities | 9,842 | 17,825 | 17,190 |
Investing activities: | |||
Net cash used in investing activities | (100,844) | 105,172 | (173,546) |
Cash flows from financing activities: | |||
Repurchase of stock | (301) | (1,835) | |
Net cash provided by (used in) financing activities | 50,654 | (56,824) | 159,527 |
Increase in cash and cash equivalents | (40,348) | 66,173 | 2,644 |
Supplemental disclosure of cash flow information: | |||
Interest on other borrowings | 13,522 | 7,407 | 6,021 |
Parent Company [Member] | |||
Cash flows from operating activities: | |||
Net income | 13,915 | 2,579 | 6,376 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Undistributed earnings of subsidiary (greater than) less than dividends received | (13,669) | 17,446 | (6,392) |
(Increase) decrease in other assets | 22 | (97) | 55 |
Increase (decrease) in other liabilities | (186) | 166 | 97 |
Net cash provided by (used in) operating activities | 82 | 20,094 | 136 |
Investing activities: | |||
Investment in subsidiary | (25,448) | (13,486) | |
Net cash used in investing activities | (25,448) | (13,486) | |
Cash flows from financing activities: | |||
Proceeds from other borrowings | 5,000 | ||
Cash paid for shares surrendered upon vesting of restricted stock | (147) | (149) | (87) |
Cash received (paid for shares surrendered) upon exercise of stock options | 117 | (6) | |
Repurchase of stock | (301) | (1,835) | |
Reimbursement from bank subsidiary for share-based compensation | 1,086 | 917 | 864 |
Net cash provided by (used in) financing activities | 1,056 | 5,461 | (1,058) |
Increase in cash and cash equivalents | 1,138 | 107 | (14,408) |
Cash and cash equivalents, beginning of year | 3,244 | 3,137 | 17,545 |
Cash and cash equivalents, end of year | 4,382 | 3,244 | 3,137 |
Supplemental disclosure of cash flow information: | |||
Interest on other borrowings | 856 | 605 | 532 |
Noncash investing and financing activities: | |||
Transfer of Rabbi Trust investments to Company stock | 100 | ||
Common stock issued in acquisitions | $ 9,872 |